<PAGE>
[LOGO OF NORTH AMERICAN FUNDS] REPORT TO
SHAREHOLDERS
--------------------------------------------------------------------------------
North American Funds(R) Semi-Annual Report April 30, 2000
--------------------------------------------------------------------------------
Unaudited
Financial
Statements
<PAGE>
NORTH AMERICAN FUNDS
President's Message
--------------------------------------------------------------------------------
North American Funds
President's Message
June 15, 2000
Dear Shareholder:
I am pleased to inform you about a recent development that has taken place at
North American Funds and to provide you with information about the market
environment in which your funds were managed during the six-month period ended
April 30, 2000.
In March, the North American Funds became part of American General Corporation.
Headquartered in Houston, American General is a leading provider of retirement
services, investments, life insurance and consumer loans. The acquisition of
North American Funds by American General Corporation provides you with the
backing of one of the largest and most successful financial organizations in
the country. We believe that the additional access to resources, research and
technology that American General offers, along with our continuing commitment
to providing you with leading investment managers who have proven themselves in
their fields of expertise, will strengthen our ability to help you reach your
goals in the months and years to come.
Financial Market Review
Equity Markets
Three Federal Reserve Board interest rate hikes and a tug of war between
technology stocks and the stocks of more traditional companies created a
volatile investment environment during the six-month period that ended April
30, 2000.
The period began on a strong note, with stocks on a broad upward trend. While
the technology-heavy NASDAQ Composite Index made the strongest gains, all of
the major market indices closed 1999 with double-digit returns. As we moved
into 2000, however, there was a dramatic change in the investment environment
and in investor psychology. Higher interest rates, inflation worries and
questions about the sustainability of the high valuations of some stocks
introduced a measure of uncertainty in the market. As a result, investors began
rotating out of expensive technology issues into more traditional stocks. For a
time, sector rotation was almost a daily event, with investors favoring
traditional companies, or so-called "old economy" stocks one day and then
turning to "new economy," or technology companies, the next. By the end of
April 2000, all of the major market indices had declined from their year end
1999 levels.
Activity in overseas markets mirrored that of the U.S. market, with investors
favoring technology stocks and then turning to other areas of the economy when
technology stocks appeared overvalued. In Europe, stronger economic growth,
falling unemployment and rising consumer and business confidence were positive
for the long-term growth of stocks in the region. In Asia, Japan continued to
struggle to regain its economic footing, however, many of the country's
economic indicators were positive. Japanese imports and capital spending are
rising, business confidence is improving and the commercial real estate market
is gaining strength. Outside Japan, other Asian markets were affected by
volatility in technology issues.
Fixed Income Markets
During the period, the U.S. Treasury announced an initiative to reduce the
national debt by scaling back the issuance of long-term bonds and buying back
some outstanding debt. This move sparked a rally in longer-term Treasury
securities because investors believed that the scarcity of bonds would drive
prices higher. The Treasury's debt reduction program, coupled with the Fed's
tighter monetary policy, produced an inverted yield curve--one in which yields
on short-term Treasury securities outpaced the yields on long-term Treasury
securities. In other fixed income sector, yields on high yield and investment
grade corporate bonds rose and prices declined.
<PAGE>
Personal Investing Strategies
As the year continues, the stocks of many companies may continue to face
challenges from rising short-term rates and high valuations among market
leaders, though the recent correction made the prices of many stocks more
reasonable. We believe the current market volatility underscores the need for
investors to diversify their investments. Diversification has and always will
be a critical component to investing responsibly. In our opinion, another
component to investing responsibly is the identification of when you are going
to need the money you are investing, as this will determine the type of
securities you should consider. For example, if you need your money within
twelve months of investing, the stock market is probably not the place to be
invested. However, if you are in the market for the long haul, then you should
remain consistent with your long-term plans. As always, you should consult your
financial advisor to help you determine the proper investments to meet your
individual needs.
At North American Funds, we are committed to you and to your investment future.
The new relationship with American General only strengthens our commitment, and
over the upcoming months you will see the advantages we can offer due to this
exciting new association. Look for new products, services and additional
enhancements to our website going forward. You have our promise that we will
continue to strive to provide you with disciplined and varied investment
management expertise and high quality customer service, all in one fund family.
If you have any questions about your investments, we encourage you to call our
customer service team at 800-872-8037 from 9:00 to 6:00 PM, Eastern Time,
Monday through Friday. Or, you may use our enhanced automated information line
at 800-872-2251, 24 hours a day, seven days a week. You can also obtain up-to-
date performance information and daily pricing for any North American Fund at
our website at www.northamericanfunds.com. Thank you for your continued
support.
Sincerely,
/s/ Alice T. Kane
Alice T. Kane
Chairman and President
North American Funds
<PAGE>
NORTH AMERICAN FUNDS
STATEMENT OF ASSETS AND LIABILITIES -- APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Small Cap Mid Cap
Growth Fund Growth Fund
International International Global (formerly (formerly
Small Cap Equity Equity Emerging Small/Mid
Fund Fund Fund Growth) Cap)
------------- ------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
-------
Investments in
securities, at value*
(Includes a repurchase
agreement of $4,431,000
in the International
Small Cap Fund) (See
accompanying Portfolio
of Investments)........ $31,979,742 $26,256,131 $53,094,644 $5,573,838 $52,979,358
Receivable for forward
foreign currency
contracts to sell
(Notes 2 and 8)........ 632,325 4,517,506 - - -
Forward foreign currency
contracts to buy, at
value (Cost: $1,558,256
and $4,339,981,
respectively).......... 1,545,263 4,413,647 - - -
Cash.................... 550 661 447 - 90
Foreign currency (Cost:
$17,707 in Int'l Small
Cap, and $42,350 in
Int'l Equity $81,903 in
Global Equity)......... 17,137 40,125 81,903 - -
Investment in State
Street Bank & Trust
Company Navigator
Securities Lending
Trust held as
collateral for
securities on loan, at
value (Note 2)......... - 3,161,281 3,642,166 - 10,194,186
Variation margin
receivable for open
futures contracts...... - 84,583 - - -
Deferred Organization
Costs.................. - - - 17,566 -
Receivables:
Investments sold....... 724,616 113,703 48,989 12,507 202,187
Fund shares sold....... 170,781 6,297 2,100 2,733 1,000
Dividends.............. 23,552 45,110 171,910 - 3,673
Interest............... 3,169 1,065 1,429 2,342 188
Foreign tax withholding
reclaims.............. 3,490 15,914 42,541 - -
From adviser........... - - - 7,177 -
Other assets............ 56,030 86,286 - 71,621 44,450
------------ ------------ ------------ ------------ ------------
Total assets.......... 35,156,655 38,742,309 57,086,129 5,687,784 63,425,132
------------ ------------ ------------ ------------ ------------
LIABILITIES:
------------
Forward foreign currency
contracts to sell, at
value (Cost: $632,325
and $4,517,506,
respectively)
(Notes 2 and 8)........ 627,856 4,628,590 - - -
Collateral on securities
loaned, at value (Note
2)..................... - 3,161,281 3,642,166 - 10,194,186
Payables:
Forward foreign
currency contracts to
buy (Notes 2 and 8)... 1,558,256 4,339,981 - - -
Investments purchased.. 1,616,296 1,356,494 972,007 2,398 219,043
Fund shares redeemed... 23,655 24,614 101,062 - 6,854
Dividend and interest
withholding tax....... 2,607 8,909 19,749 - -
Investment adviser..... 15,313 12,546 44,187 - 21,370
Custodian and transfer
agent fees............ - 16,510 14,742 366 2,299
Distribution fee....... - 11,279 17,039 3,820 19,541
Other accrued expenses. 5,971 1,046 29,012 23 1,225
------------ ------------ ------------ ------------ ------------
Total liabilities..... 3,849,954 13,561,250 4,839,964 6,607 10,464,518
------------ ------------ ------------ ------------ ------------
NET ASSETS.............. $31,306,701 $25,181,059 $52,246,165 $5,681,177 $52,960,614
------------ ------------ ------------ ------------ ------------
</TABLE>
*See Page 2
The accompanying notes are an integral part of the financial statements.
1
<PAGE>
NORTH AMERICAN FUNDS
STATEMENT OF ASSETS AND LIABILITIES continued -- APRIL 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Small Cap Mid Cap
Growth Fund Growth Fund
International International Global (formerly (formerly
Small Cap Equity Equity Emerging Small/Mid
Fund Fund Fund Growth) Cap)
------------- ------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
NET ASSETS CONSIST OF:
----------------------
Undistributed net
investment
income/(loss) (Note
2).................... ($319,017) ($173,220) ($404,327) ($32,450) ($507,479)
Accumulated
undistributed net
realized gain (loss)
on investments,
foreign currency and
forward foreign
currency contracts.... 10,047,539 2,199,732 3,074,000 458,006 19,882,834
Unrealized appreciation
(depreciation) on:
Investments............ (3,153,418) 1,443,642 (1,889,668) 66,064 (5,397,620)
Futures................ (42,090)
Foreign currency and
forward foreign
currency contracts.... (857) (34,563) (8,841) - -
Capital shares at par
value of $.001 (Note
3).................... 1,408 2,198 4,405 320 2,730
Additional paid-in
capital............... 24,731,046 21,785,360 51,470,596 5,189,237 38,980,149
------------ ------------ ------------ ------------ ------------
Net assets............ $31,306,701 $25,181,059 $52,246,165 $5,681,177 $52,960,614
------------ ------------ ------------ ------------ ------------
*Investments in
securities, at
identified cost (Note
2)..................... $35,133,160 $24,812,489 $54,984,312 $5,507,774 $58,376,978
------------ ------------ ------------ ------------ ------------
NET ASSET VALUES:
-----------------
Class A Shares
Net assets at value.... $6,017,118 $4,716,463 $8,200,043 $1,106,327 $7,727,556
Shares outstanding..... 263,003 408,338 678,606 60,898 386,150
Net asset value (NAV)
and redemption price
per share.............. $22.88 $11.55 $12.08 $18.17 $20.01
------ ------ ------ ------ ------
Public offering price
per share (100/94.25 of
NAV)
On sales of $100,000 or
more the offering
price is reduced...... $24.27 $12.25 $12.81 $19.27 $21.23
------ ------ ------ ------ ------
Class B Shares
Net assets at value.... $12,941,316 $13,853,380 $16,314,006 $2,207,793 $22,411,471
Shares outstanding..... 586,715 1,212,060 1,383,840 124,352 1,163,011
Net asset value,
offering price and
redemption price per
share.................. $22.06 $11.43 $11.79 $17.75 $19.27
------ ------ ------ ------ ------
Class C Shares
Net assets at value.... $12,348,267 $6,611,216 $27,732,116 $2,367,057 $22,821,587
Shares outstanding..... 557,792 578,468 2,341,954 133,317 1,182,131
Net asset value,
offering price and
redemption price per
share.................. $22.14 $11.43 $11.84 $17.76 $19.31
------ ------ ------ ------ ------
</TABLE>
The accompanying notes are an integral part of the financial statements.
2
<PAGE>
NORTH AMERICAN FUNDS
STATEMENT OF ASSETS AND LIABILITIES continued -- APRIL 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Large Cap
Growth Fund
(formerly Tax-Sensitive Growth & Equity-
Growth Equity) Equity Fund Income Fund Income Fund Balanced Fund
-------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS:
-------
Investments in
securities, at value*
(See accompanying
Portfolio of
Investments)........... $58,818,425 $5,239,828 $291,407,739 $68,234,433 $56,167,605
Cash.................... 176 31,490 856 - 81
Investment in State
Street Bank & Trust
Company Navigator
Securities Lending
Trust held as
collateral for
securities on loan, at
value (Note 2)......... 4,271,340 - 9,571,700 4,347,700 -
Variation margin
receivable for open
futures contracts...... - - - - -
Deferred Organization
Costs.................. - 17,484 - - -
Receivables:
Investments sold....... 16,851 - 803,228 981,192 386,769
Fund shares sold....... 9,846 - 145,179 2,587 -
Dividends.............. 15,221 4,050 286,327 153,819 31,194
Interest............... 2,149 - 379 - 336,429
Foreign tax withholding
reclaims.............. 88 - - - 5,863
From adviser........... - 7,619 - - -
Other assets............ 89,475 63,068 - - -
------------- ------------- ------------- ------------- -------------
Total assets.......... 63,223,571 5,363,539 302,215,408 73,719,731 56,927,941
------------- ------------- ------------- ------------- -------------
LIABILITIES:
------------
Collateral on securities
loaned, at value (Note
2)..................... 4,271,340 - 9,571,700 4,347,700 -
Payables:
Investments purchased.. 2,421,988 - 501,054 - 640,099
Fund shares redeemed... 14,359 - 111,809 55,701 12,599
Dividend and interest
withholding tax....... - - - - 228
Investment adviser..... 28,539 - 125,845 13,405 21,128
Custodian and transfer
agent fees............ 1,881 5,007 97,877 45,538 36,053
Distribution fee....... 75,325 4,103 90,061 20,371 11,264
Due to custodian....... - - - 308,151 -
Other accrued expenses. 1,446 - 232,197 35,870 9,575
------------- ------------- ------------- ------------- -------------
Total liabilities..... 6,814,878 9,110 10,730,543 4,826,736 730,946
------------- ------------- ------------- ------------- -------------
NET ASSETS.............. $56,408,693 $5,354,429 $291,484,865 $68,892,995 $56,196,995
------------- ------------- ------------- ------------- -------------
NET ASSETS CONSIST OF:
----------------------
Undistributed net
investment
income/(loss)
(Note 2).............. ($446,227) ($36,805) ($1,214,531) $100,384 $85,531
Accumulated
undistributed net
realized gain (loss)
on investments,
foreign currency and
forward foreign
currency contracts.... 3,708,754 (1,966,196) 10,743,171 (6,755,784) (2,207,893)
Unrealized appreciation
(depreciation) on:
Investments............ 8,619,646 1,316,803 113,753,736 1,929,977 799,721
Foreign currency and
forward foreign
currency contracts.... (14) - (3) - (930)
Capital shares at par
value of $.001 (Note
3).................... 2,645 547 10,645 5,953 6,120
Additional paid-in
capital............... 44,523,889 6,040,080 168,191,847 73,612,465 57,514,446
------------- ------------- ------------- ------------- -------------
Net assets............ $56,408,693 $5,354,429 $291,484,865 $68,892,995 $56,196,995
------------- ------------- ------------- ------------- -------------
*Investments in
securities, at
identified cost
(Note 2)............... $50,198,779 $3,923,025 $177,654,003 $66,304,456 $55,367,884
------------- ------------- ------------- ------------- -------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
NORTH AMERICAN FUNDS
STATEMENT OF ASSETS AND LIABILITIES continued--APRIL 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Large Cap
Growth Fund
(formerly Tax-Sensitive Growth & Equity- Balanced
Growth Equity) Equity Fund Income Fund Income Fund Fund
-------------- ------------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUES:
-----------------
Class A Shares
Net assets at value.... $6,633,385 $277,302 $37,294,027 $8,858,155 $4,754,178
Shares outstanding..... 302,922 27,777 1,338,809 761,835 521,879
Net asset value (NAV)
and redemption price
per share.............. $21.90 $9.98 $27.86 $11.63 $9.11
------ ----- ------ ------ -----
Public offering price
per share (100/94.25 of
NAV) On sales of
$100,000 or more the
offering price is
reduced................ $23.24 $10.59 $29.56 $12.34 $9.66
------ ------ ------ ------ -----
Class B Shares
Net assets at value.... $23,250,380 $2,449,960 $101,640,228 $18,267,294 $9,708,622
Shares outstanding..... 1,093,208 250,313 3,731,467 1,588,017 1,070,311
Net asset value,
offering price and
redemption price per
share.................. $21.27 $9.79 $27.24 $11.50 $9.07
------ ----- ------ ------ -----
Class C Shares
Net assets at value.... $26,524,928 $2,627,167 $152,550,610 $41,767,546 $41,734,195
Shares outstanding..... 1,248,099 269,042 5,575,992 3,602,764 4,526,293
Net asset value,
offering price and
redemption price per
share.................. $21.25 $9.76 $27.36 $11.59 $9.22
------ ----- ------ ------ -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
NORTH AMERICAN FUNDS
STATEMENT OF ASSETS AND LIABILITIES continued--APRIL 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Core Bond
Fund Municipal Bond U. S.
(formerly Fund (formerly Government
Strategic Investment National Securities Money Market
Income Fund Quality Bond) Municipal Bond) Fund Fund
------------ ------------- --------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
-------
Investments in
securities, at value*
(See accompanying
Portfolio of
Investments)........... $39,275,433 $9,774,290 $9,683,858 $53,227,599 $19,828,863
Cash.................... 226 - - 116 907
Investment in State
Street Bank & Trust
Company Navigator
Securities Lending
Trust held as
collateral for
securities on loan, at
value (Note 2)......... 632,350 1,334,575 - - -
Receivables:
Investments sold....... 4,287,660 212,398 95,648 43,613 -
Fund shares sold....... - - - - 53,187
Dividends.............. 867 - - - -
Interest............... 654,261 181,924 158,028 343,543 38,211
From adviser........... - 10,470 6,359 - 12,493
Other assets............ 40,136 62,220 65,487 24,642 97,654
------------ ------------ ------------ ------------ ------------
Total assets.......... 44,890,933 11,575,877 10,009,380 53,639,513 20,031,315
------------ ------------ ------------ ------------ ------------
LIABILITIES:
------------
Collateral on securities
loaned, at value (Note
2)..................... 632,350 1,334,575 - - -
Payables:
Investments purchased.. 3,657,562 34,981 - 3,858,737 -
Fund shares redeemed... 31,022 3,000 10 34,665 -
Dividends.............. 240,026 73,968 39,844 458,633 91,490
Dividend and interest
withholding tax....... - 12 - - -
Investment adviser..... 15,761 - - 346 -
Custodian and transfer
agent fees............ 13,853 - 8,087 24,291 2,966
Distribution fee....... 18,428 - 3,188 10,094
Due to custodian....... 379,164 373,981 33,693 - -
Other accrued expenses. 22,481 - - 3,025 1,830
------------ ------------ ------------ ------------ ------------
Total liabilities..... 5,010,647 1,820,517 84,822 4,389,791 96,286
------------ ------------ ------------ ------------ ------------
NET ASSETS.............. $39,880,286 $9,755,360 $9,924,558 $49,249,722 $19,935,029
------------ ------------ ------------ ------------ ------------
NET ASSETS CONSIST OF:
----------------------
Undistributed net
investment
income/(loss) (Note
2).................... (108,824) (46,733) - (493,483) -
Accumulated
undistributed net
realized gain (loss)
on investments,
foreign currency and
forward foreign
currency contracts.... (6,614,977) (835,370) (97,994) (2,047,381) -
Unrealized appreciation
(depreciation) on:
Investments............ (2,701,956) (565,744) (78,770) (2,234,360) -
Foreign currency and
forward foreign
currency contracts.... (3,207) - - - -
Capital shares at par
value of $.001 (Note
3).................... 4,879 1,017 1,055 5,284 19,935
Additional paid-in
capital............... 49,304,371 11,202,190 10,100,267 54,019,662 19,915,094
------------ ------------ ------------ ------------ ------------
Net assets............ $39,880,286 $9,755,360 $9,924,558 $49,249,722 $19,935,029
------------ ------------ ------------ ------------ ------------
*Investments in
securities, at
identified cost (Note
2)..................... $41,977,390 $10,340,034 $9,762,628 $55,461,959 $19,828,863
------------ ------------ ------------ ------------ ------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
NORTH AMERICAN FUNDS
STATEMENT OF ASSETS AND LIABILITIES continued--APRIL 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Core Bond
Fund Municipal Bond U. S.
(formerly Fund (formerly Government
Strategic Investment National Securities Money
Income Fund Quality Bond) Municipal Bond) Fund Market Fund
----------- ------------- --------------- ----------- -----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUES:
-----------------
Class A Shares
Net assets at value.... $6,947,578 $2,887,497 $3,721,344 $30,657,842 $10,370,243
Shares outstanding..... 849,993 301,139 395,338 3,288,615 10,349,530
Net asset value (NAV)
and redemption price
per share.............. $8.17 $9.59 $9.41 $9.32 $1.00
----- ----- ----- ----- -----
Public offering price
per share (100/95.25 of
NAV) On sales of
$100,000 or more the
offering price is
reduced................ $8.58 $10.07 $9.88 $9.79
----- ------ ----- -----
Class B Shares
Net assets at value.... $17,071,172 $3,582,784 $3,377,967 $9,713,740 $2,843,037
Shares outstanding..... 2,088,809 373,669 358,910 1,042,032 2,842,808
Net asset value,
offering price and
redemption price
per share.............. $8.17 $9.59 $9.41 $9.32 $1.00
----- ----- ----- ----- -----
Class C Shares
Net assets at value.... $15,861,536 $3,285,079 $2,825,247 $8,878,139 $6,721,749
Shares outstanding..... 1,940,368 342,621 300,182 952,416 6,721,146
Net asset value,
offering price and
redemption price
per share.............. $8.17 $9.59 $9.41 $9.32 $1.00
----- ----- ----- ----- -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
NORTH AMERICAN FUNDS
STATEMENT OF OPERATIONS--
For The Six Months Ended April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Small Cap Mid Cap
Growth Growth
Fund Fund
International International Global (formerly (formerly
Small Cap Equity Equity Emerging Small/Mid
Fund Fund Fund Growth) Cap)
------------- ------------- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest.................. $22,697 $16,076 $5,174 $12,335 $67,748
Dividends (Net of $6,766,
$20,535, $51,866, and
$792 withholding tax in
International Small Cap,
International Equity,
Global Equity, and Mid
Cap Growth,
respectively)............ 48,640 131,986 582,191 272 29,907
------------ ------------ ------------- ------------ ------------
Total income............ 71,337 148,062 587,365 12,607 97,655
------------ ------------ ------------- ------------ ------------
EXPENSES:
Distribution for Class A.. 10,697 7,615 18,240 1,180 12,871
Distribution for Class B.. 66,399 73,897 109,717 7,700 109,574
Distribution for Class C.. 56,852 34,373 191,441 8,154 114,901
Investment adviser fee
(Note 5)................. 161,504 117,024 317,946 18,262 241,607
Custodian fee............. 27,615 19,861 64,279 18,634 29,727
Transfer agent fee........ 20,329 24,841 77,980 3,157 44,241
Accounting/administration. 25,264 22,934 66,432 2,840 44,769
Audit and legal fees...... 7,833 6,946 19,964 889 13,650
Amortization of
Organization Costs....... - - - 3,276 -
Miscellaneous............. 27,407 19,941 36,898 5,274 33,151
------------ ------------ ------------- ------------ ------------
Expenses before
reimbursement by
investment adviser....... 403,900 327,432 902,897 69,366 644,491
Reimbursement of expenses
by investment adviser
(Note 5)................. 13,546 14,551 58,286 24,309 39,357
------------ ------------ ------------- ------------ ------------
Net expenses............ 390,354 312,881 844,611 45,057 605,134
------------ ------------ ------------- ------------ ------------
Net investment income
(loss)................. (319,017) (164,819) (257,246) (32,450) (507,479)
------------ ------------ ------------- ------------ ------------
REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS,
FOREIGN CURRENCY AND
FORWARD FOREIGN CURRENCY
CONTRACTS:
Net realized gain (loss)
on:
Investment transactions... 10,377,321 2,312,736 2,915,957 459,774 20,014,528
Futures contracts......... - (34,787) - - -
Foreign currency and
forward foreign currency
contracts................ (163,248) (33,294) 618,801 - (209)
Change in unrealized
appreciation
(depreciation) on:
Investments............... (4,819,372) (702,706) (11,915,260) (182,540) (8,968,166)
Futures contracts......... - (14,270) - - -
Translation of foreign
currency and forward
foreign currency
contracts................ (36) (22,048) (153,843) - -
------------ ------------ ------------- ------------ ------------
Net gain (loss) on
investments, foreign
currency and forward
foreign currency
contracts................. 5,394,665 1,505,631 (8,534,345) 277,234 11,046,153
------------ ------------ ------------- ------------ ------------
Net increase (decrease) in
net assets resulting from
operations................ $5,075,648 $1,340,812 ($8,791,591) $244,784 $10,538,674
------------ ------------ ------------- ------------ ------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
NORTH AMERICAN FUNDS
STATEMENT OF OPERATIONS--
For The Six Months Ended April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Large Cap
Growth
Fund Tax-
(formerly Sensitive Growth & Equity-
Growth Equity Income Income Balanced
Equity) Fund Fund Fund Fund
------------- ------------- ------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest.................. $78,637 $2,979 $38,973 - $798,648
Dividends (Net of $802,
$28, $121 and $256
withholding tax in Large
Cap Growth, Tax Sensitive,
Equity-Income and
Balanced, respectively)... 87,299 36,377 1,733,204 1,125,089 171,960
------------- ------------- ------------- -------------- -------------
Total income............ 165,936 39,356 1,772,177 1,125,089 970,608
------------- ------------- ------------- -------------- -------------
EXPENSES:
Distribution for Class A.. 11,542 1,107 65,639 19,807 9,337
Distribution for Class B.. 107,983 15,793 526,753 120,145 58,526
Distribution for Class C.. 123,542 15,806 779,692 272,025 236,211
Investment adviser fee
(Note 5)................. 238,052 29,547 996,069 316,626 245,491
Custodian fee............. 30,056 19,598 137,956 49,737 36,485
Transfer agent fee........ 43,484 7,365 267,645 102,380 65,758
Accounting/administration. 45,043 6,552 264,245 84,385 59,208
Audit and legal fees...... 13,750 1,962 79,897 25,258 17,813
Amortization of
Organization Costs....... - 3,278 - - -
Miscellaneous............. 26,649 12,099 134,981 44,346 32,695
------------- ------------- ------------- -------------- -------------
Expenses before
reimbursement by
investment adviser....... 640,101 113,101 3,252,877 1,034,709 761,524
Reimbursement of expenses
by investment adviser
(Note 5)................. 27,938 36,940 266,169 133,610 95,069
------------- ------------- ------------- -------------- -------------
Net expenses............ 612,163 76,161 2,986,708 901,099 666,455
------------- ------------- ------------- -------------- -------------
Net investment income... (446,227) (36,805) (1,214,531) 223,990 304,153
------------- ------------- ------------- -------------- -------------
REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS,
FOREIGN CURRENCY AND
FORWARD FOREIGN CURRENCY
CONTRACTS:
Net realized gain (loss)
on:
Investment transactions... 3,916,062 (204,398) 11,064,147 (6,745,602) (2,157,732)
Foreign currency and
forward foreign currency
contracts................ 874 - - - 53,012
Change in unrealized
appreciation
(depreciation) on:
Investments............... 2,540,003 584,999 4,772,092 (5,769,473) 2,696,306
Translation of foreign
currency and forward
foreign currency
contracts................ (12) - 9 - (797)
------------- ------------- ------------- -------------- -------------
Net gain on investments,
foreign currency and
forward foreign currency
contracts................. 6,456,927 380,601 15,836,248 (12,515,075) 590,789
------------- ------------- ------------- -------------- -------------
Net increase in net assets
resulting from operations. $6,010,700 $343,796 $14,621,717 ($12,291,085) $894,942
------------- ------------- ------------- -------------- -------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
NORTH AMERICAN FUNDS
STATEMENT OF OPERATIONS--
For The Six Months Ended April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Municipal
Core Bond Bond
Fund Fund
(formerly (formerly U. S.
Strategic Investment National Government Money
Income Quality Municipal Securities Market
Fund Bond) Bond) Fund Fund
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest (Net of $1,212
withholding tax in
Strategic Income)........ $2,427,553 $430,292 $329,995 $1,973,005 $538,221
Dividends (Net of $17
withholding tax in Core
Bond).................... - 2,031 - - -
----------- ----------- ----------- ----------- -----------
Total income............ 2,427,553 432,323 329,995 1,973,005 538,221
----------- ----------- ----------- ----------- -----------
EXPENSES:
Distribution for Class A.. 13,816 5,665 2,993 57,614 -
Distribution for Class B.. 96,946 19,610 18,484 54,232 -
Distribution for Class C.. 90,518 19,945 17,200 48,064 -
Investment adviser fee
(Note 5)................. 170,181 33,443 33,384 160,144 19,204
Custodian fee............. 42,381 20,526 20,542 30,714 22,376
Transfer agent fee........ 45,996 12,081 11,269 53,358 20,681
Accounting/administration. 41,742 10,160 10,215 48,384 17,448
Audit and legal fees...... 12,566 3,063 3,075 14,591 5,257
Miscellaneous............. 24,112 8,725 8,744 27,586 12,402
----------- ----------- ----------- ----------- -----------
Expenses before
reimbursement by
investment adviser....... 538,258 133,218 125,906 494,687 97,368
Reimbursement of expenses
by investment adviser
(Note 5)................. 67,821 35,656 39,881 94,673 35,041
----------- ----------- ----------- ----------- -----------
Net expenses............ 470,437 97,562 86,025 400,014 62,327
----------- ----------- ----------- ----------- -----------
Net investment income .. 1,957,116 334,761 243,970 1,572,991 475,894
----------- ----------- ----------- ----------- -----------
REALIZED AND UNREALIZED
GAIN/(LOSS) ON
INVESTMENTS, FOREIGN
CURRENCY AND FORWARD
FOREIGN CURRENCY
CONTRACTS:
Net realized gain (loss)
on:
Investment transactions... (2,267,700) (257,838) 2,121 (389,846) -
Foreign currency and
forward foreign currency
contracts................ (334,622) - - - -
Change in unrealized
appreciation
(depreciation) on:
Investments............... 1,506,560 (7,182) (90,818) (945,041) -
Translation of foreign
currency and forward
foreign currency
contracts................ 1,164 - - - -
----------- ----------- ----------- ----------- -----------
Net gain on investments,
foreign currency and
forward foreign currency
contracts................. (1,094,598) (265,020) (88,697) (1,334,887) -
----------- ----------- ----------- ----------- -----------
Net increase in net assets
resulting from operations. $862,518 $69,741 $155,273 $238,104 $475,894
----------- ----------- ----------- ----------- -----------
</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 International Equity
Small Cap Fund Fund * Global Equity Fund
------------------------- ------------------------- -------------------------
Six Months Six Months Six Months
Ended Year Ended Year Ended Year
4/30/00 Ended 4/30/00 Ended 4/30/00 Ended
(Unaudited) 10/31/99 (Unaudited) 10/31/99 (Unaudited) 10/31/99
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
-----------
Net investment income
(loss)................ ($319,017) ($218,092) ($164,819) ($93,263) ($257,246) ($93,660)
Net realized gain
(loss) on:
Investment
transactions.......... 10,377,321 4,674,222 2,312,736 2,202,524 2,915,957 15,363,203
Futures contracts...... - - (34,787) (105,083) - -
Foreign currency and
forward foreign
currency contracts.... (163,248) (58,974) (33,294) (41,996) 618,801 (270,661)
Change in unrealized
appreciation
(depreciation) on:
Investments............ (4,819,372) 127,096 (702,706) 2,776,922 (11,915,260) (8,810,322)
Futures contracts...... - - (14,270) (27,820) - -
Foreign currency and
forward foreign
currency contracts.... (36) (958) (22,048) 155,639 (153,843) 365,478
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease)
in net assets resulting
from operations........ 5,075,648 4,523,294 1,340,812 4,866,923 (8,791,591) 6,554,038
DISTRIBUTIONS FROM:
-------------------
Net investment income
Class A................ - - (33,276) - - -
Class B................ - - (19,674) - - -
Class C................ - - (9,219) - - -
Net realized gains on
investments and
foreign currency
transactions
Class A................ (662,245) - (307,060) (12,093) (1,483,161) (2,303,340)
Class B................ (1,815,252) - (1,068,999) (44,312) (3,256,012) (2,219,820)
Class C................ (1,423,034) - (499,719) (25,387) (5,704,775) (4,228,655)
Increase (decrease) in
net assets from capital
share transactions
(Note 3)............... 14,433,565 (4,278,804) 832,215 (5,598,242) (11,856,830) (33,579,885)
------------ ------------ ------------ ------------ ------------ ------------
Increase (decrease) in
net assets............. 15,608,682 244,490 235,080 (813,111) (31,092,369) (35,777,662)
Net assets at beginning
of period.............. 15,698,019 15,453,529 24,945,979 25,759,090 83,338,534 119,116,196
------------ ------------ ------------ ------------ ------------ ------------
Net assets at end of
period................. $31,306,701 $15,698,019 $25,181,059 $24,945,979 $52,246,165 $83,338,534
------------ ------------ ------------ ------------ ------------ ------------
Undistributed net
investment income
(loss)................. ($319,017) - ($173,220) $53,768 ($404,327) ($147,081)
------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
---------------------
* Formerly the International Growth and Income Fund
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
NORTH AMERICAN FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Small Cap Growth Fund Mid Cap Growth Fund
(formerly Emerging (formerly Large Cap Growth Fund
Growth) Small/Mid Cap) (formerly Growth Equity)
------------------------- ------------------------- -------------------------
Six Months Six Months Six Months
Ended Year Ended Year Ended 01/06/98 *
4/30/00 Ended 4/30/00 Ended 4/30/00 to
(Unaudited) 10/31/99 (Unaudited) 10/31/99 (Unaudited) 10/31/99
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
-----------
Net investment income
(loss)................ ($32,450) ($19,249) ($507,479) ($725,375) ($446,227) ($560,560)
Net realized gain
(loss) on:
Investment
transactions.......... 459,774 63,202 20,014,528 8,025,646 3,916,062 6,256,855
Foreign currency and
forward foreign
currency contracts.... - - (209) 8 874 (2,574)
Change in unrealized
appreciation
(depreciation) on:
Investments............ (182,540) 309,851 (8,968,166) 1,370,689 2,540,003 2,622,980
Foreign currency and
forward foreign
currency contracts.... - - - - (12) (7)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease)
in net assets resulting
from operations........ 244,784 353,804 10,538,674 8,670,968 6,010,700 8,316,694
DISTRIBUTIONS FROM:
-------------------
Net realized gains on
investments and
foreign currency
transactions
Class A................ (1,651) - (975,145) (460,517) (746,897) (265,199)
Class B................ (4,827) - (3,044,548) (1,326,329) (2,403,530) (781,956)
Class C................ (5,672) - (3,232,504) (1,510,893) (2,750,201) (851,533)
Increase (decrease) in
net assets from capital
share transactions
(Note 3) .............. 4,124,214 323,343 7,581,162 1,712,126 14,007,969 7,329,284
------------ ------------ ------------ ------------ ------------ ------------
Increase (decrease) in
net assets............. 4,356,848 677,147 10,867,639 7,085,355 14,118,041 13,747,290
Net assets at beginning
of period.............. 1,324,331 647,184 42,092,975 35,007,620 42,290,652 28,543,362
------------ ------------ ------------ ------------ ------------ ------------
Net assets at end of
period................. $5,681,177 $1,324,331 $52,960,614 $42,092,975 $56,408,693 $42,290,652
------------ ------------ ------------ ------------ ------------ ------------
Undistributed net
investment income
(loss)................. ($32,450) - ($507,479) - ($446,228) -
------------ ------------ ------------ ------------ ------------ ------------
</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>
Tax-Sensitive Growth &
Equity Fund Income Fund Equity-Income Fund
------------------------- ------------------------------ ----------------------------
Six Months Six Months Six Months
Ended Year Ended Year Ended Year
4/30/00 Ended 4/30/00 Ended 4/30/00 Ended
(Unaudited) 10/31/99 (Unaudited) 10/31/99 (Unaudited) 10/31/99
------------ ------------ -------------- --------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
-----------
Net investment income
(loss)................ ($36,805) ($98,113) ($1,214,531) ($1,248,402) $223,990 $1,069,098
Net realized gain
(loss) on:
Investment
transactions.......... (204,398) (1,007,031) 11,064,147 29,073,940 (6,745,602) 25,209,364
Foreign currency and
forward foreign
currency contracts.... - - - (244) - (11,895)
Change in unrealized
appreciation
(depreciation) on:
Investments............ 584,999 1,514,682 4,772,092 27,366,787 (5,769,473) (19,384,683)
Foreign currency and
forward foreign
currency contracts.... - - 9 153 - 101
------------ ------------ -------------- --------------- ------------- --------------
Net increase (decrease)
in net assets resulting
from operations........ 343,796 409,538 14,621,717 55,192,234 (12,291,085) 6,881,985
DISTRIBUTIONS FROM:
-------------------
Net investment income
Class A................ - - - - (155,859) (602,777)
Class B................ - - - - (145,036) (371,918)
Class C................ - - - - (331,817) (918,427)
Net realized gains on
investments and
foreign currency
transactions
Class A................ - - (3,116,232) (1,712,771) (2,819,627) (2,331,204)
Class B................ - - (9,002,044) (3,082,778) (5,890,033) (2,468,438)
Class C................ - - (13,236,319) (4,839,860) (13,142,358) (6,050,850)
Increase (decrease) in
net assets from capital
share transactions
(Note 3)............... (3,962,879) (1,770,400) 4,255,588 11,521,213 (12,180,413) (49,890,706)
------------ ------------ -------------- --------------- ------------- --------------
Increase (decrease) in
net assets............. (3,619,083) (1,360,862) (6,477,290) 57,078,038 (46,956,228) (55,752,335)
Net assets at beginning
of period.............. 8,973,512 10,334,374 297,962,155 240,884,117 115,849,223 171,601,558
------------ ------------ -------------- --------------- ------------- --------------
Net assets at end of
period................. $5,354,429 $8,973,512 $291,484,865 $297,962,155 $68,892,995 $115,849,223
------------ ------------ -------------- --------------- ------------- --------------
Undistributed net
investment income
(loss)................. ($36,805) - ($1,214,532) - $100,384 $509,106
------------ ------------ -------------- --------------- ------------- --------------
</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>
Core Bond Fund
(formerly Investment
Balanced Fund Strategic Income Fund Quality Bond)
------------------------- ------------------------- -------------------------
Six Months Six Months Six Months
Ended Year Ended Year Ended Year
4/30/00 Ended 4/30/00 Ended 4/30/00 Ended
(Unaudited) 10/31/99 (Unaudited) 10/31/99 (Unaudited) 10/31/99
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
-----------
Net investment income
(loss)................ $304,153 $1,525,974 $1,957,116 $5,106,661 $334,761 $937,686
Net realized gain
(loss) on:
Investment
transactions.......... (2,157,732) 9,063,680 (2,267,700) (3,377,733) (257,838) (205,464)
Foreign currency and
forward foreign
currency contracts.... 53,012 (43,308) (334,622) (246,365) - -
Change in unrealized
appreciation
(depreciation) on:
Investments............ 2,696,306 (9,389,607) 1,506,560 (281,966) (7,182) (979,000)
Foreign currency and
forward foreign
currency contracts.... (797) (920) 1,164 255,346 - -
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease)
in net assets resulting
from operations........ 894,942 1,155,819 862,518 1,455,943 69,741 (246,778)
DISTRIBUTIONS FROM:
-------------------
Net investment income
Class A................ (155,664) (284,543) (365,981) (985,686) (111,992) (366,860)
Class B................ (275,137) (243,851) (833,962) (2,027,824) (123,396) (279,710)
Class C................ (1,059,004) (835,387) (771,470) (2,174,480) (125,224) (326,493)
Net realized gains on
investments and
foreign currency
transactions
Class A................ (714,922) (1,061,187) - (93,964) - -
Class B................ (1,649,177) (1,381,136) - (188,949) - -
Class C................ (6,385,746) (4,691,171) - (202,495) - -
Increase (decrease) in
net assets from capital
share transactions
(Note 3)............... (8,021,233) (17,488,266) (10,096,857) (22,740,011) (2,348,517) (3,491,641)
------------ ------------ ------------ ------------ ------------ ------------
Increase (decrease) in
net assets............. (17,365,941) (24,829,722) (11,205,752) (26,957,466) (2,639,388) (4,711,482)
Net assets at beginning
of period.............. 73,562,936 98,392,658 51,086,038 78,043,504 12,394,748 17,106,230
------------ ------------ ------------ ------------ ------------ ------------
Net assets at end of
period................. $56,196,995 $73,562,936 $39,880,286 $51,086,038 $9,755,360 $12,394,748
------------ ------------ ------------ ------------ ------------ ------------
Undistributed net
investment income
(loss)................. $85,531 $1,271,183 ($108,824) ($94,527) ($46,733) ($20,882)
------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
NORTH AMERICAN FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Municipal Bond Fund
(formerly National U. S. Government
Municipal Bond) Securities Fund Money Market Fund
------------------------ ------------------------- -------------------------
Six Months Six Months Six Months
Ended Year Ended Year Ended Year
4/30/00 Ended 4/30/00 Ended 4/30/00 Ended
(Unaudited) 10/31/99 (Unaudited) 10/31/99 (Unaudited) 10/31/99
----------- ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
-----------
Net investment income
(loss)................ $243,970 $594,894 $1,572,991 $3,700,215 $475,894 $986,731
Net realized gain
(loss) on:
Investment
transactions.......... 2,121 (75,958) (389,846) (821,237) - 572
Change in unrealized
appreciation
(depreciation) on:
Investments............ (90,818) (1,012,148) (945,041) (2,669,738) - -
----------- ------------ ------------ ------------ ------------ ------------
Net increase (decrease)
in net assets resulting
from operations........ 155,273 (493,212) 238,104 209,240 475,894 987,303
DISTRIBUTIONS FROM:
-------------------
Net investment income
Class A................ (97,960) (241,991) (1,021,133) (2,291,801) (167,287) (390,560)
Class B................ (75,667) (182,925) (295,558) (622,804) (103,927) (226,689)
Class C................ (70,080) (169,977) (260,899) (572,045) (204,680) (370,054)
In excess of net
investment income
Class A................ - - - (166,512) - -
Class B................ - - - (45,250) - -
Class C................ - - - (41,562) - -
Return of capital
Class A................ - - - (127,295) - -
Class B................ - - - (34,593) - -
Class C................ - - - (31,774) - -
Increase (decrease) in
net assets from capital
share transactions
(Note 3)............... (2,549,529) (2,589,104) (7,599,165) (18,269,612) 709,931 (5,226,114)
----------- ------------ ------------ ------------ ------------ ------------
Increase (decrease) in
net assets............. (2,637,963) (3,677,209) (8,938,651) (21,994,008) 709,931 (5,226,114)
Net assets at beginning
of period.............. 12,562,521 16,239,730 58,188,373 80,182,381 19,225,098 24,451,212
----------- ------------ ------------ ------------ ------------ ------------
Net assets at end of
period................. $9,924,558 $12,562,521 $49,249,722 $58,188,373 $19,935,029 $19,225,098
----------- ------------ ------------ ------------ ------------ ------------
Undistributed net
investment income
(loss)................. - ($263) ($493,483) ($488,884) - -
----------- ------------ ------------ ------------ ------------ ------------
</TABLE>
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>
<CAPTION>
International Small Cap Fund
-------------------------------------------------
Class A
-------------------------------------------------
Six months Year Year 3/04/96*
Ended Year Ended Ended Ended to
4/30/00** 10/31/99** 10/31/98 10/31/97 10/31/96
(unaudited)
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period $18.83 $13.91 $13.86 $13.43 $12.50
---------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) (0.22) (0.14) (0.02) (0.03) 0.05
Net realized and unrealized
gain/(loss) on investments
and foreign currency 8.94 5.06 0.07 0.46 0.88
------------------------------------------------
Total from investment
operations 8.72 4.92 0.05 0.43 0.93
------------------------------------------------
Distributions
Distributions from realized
capital gains (4.67) - - - -
---------------------------------------------------------------------------------
Net Asset Value, End of
Period $22.88 $18.83 $13.91 $13.86 $13.43
---------------------------------------------------------------------------------
Total Return 46.82% + 35.37% 0.36% 3.20% 7.44% +
---------------------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------------------
Net assets, end of period
(000's) $6,017 $2,309 $2,173 $3,225 $2,120
---------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 2.02% # 1.90% 1.90% 1.90% 1.90% #
---------------------------------------------------------------------------------
Ratio of net investment
income to average net
assets (1.57%) # (0.87%) (0.12%) (0.19%) (0.50%) #
---------------------------------------------------------------------------------
Portfolio turnover rate 297% + 202% 54% 75% 67% #
---------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by adviser 2.10% # 2.24% 2.23% 2.46% 3.07% #
---------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Small Cap Fund
-----------------------------------------------
Class B
-----------------------------------------------
Six months Year Year Year 3/04/96*
Ended Ended Ended Ended to
4/30/00** 10/31/99 10/31/98 10/31/97 10/31/96
(unaudited)
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period $18.35 $13.66 $13.71 $13.37 $12.50
--------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) (0.29) (0.27) (0.12) (0.11) (0.01)
Net realized and unrealized
gain/(loss) on investments
and foreign currency 8.67 4.96 0.07 0.45 0.88
----------------------------------------------
Total from investment
operations 8.38 4.69 (0.05) 0.34 0.87
----------------------------------------------
Distributions
Distributions from realized
capital gains (4.67) - - - -
--------------------------------------------------------------------------------
Net Asset Value, End of Period $22.06 $18.35 $13.66 $13.71 $13.37
--------------------------------------------------------------------------------
Total Return 46.14% + 34.33% (0.36%) 2.54% 6.96% +
--------------------------------------------------------------------------------
Ratios/Supplemental Data
--------------------------------------------------------------------------------
Net assets, end of period
(000's) $12,941 $7,417 $7,073 $7,369 $5,068
--------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 2.66% # 2.55% 2.55% 2.55% 2.55% #
--------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (2.20%) # (1.53) (0.79%) (0.84%) (0.15%) #
--------------------------------------------------------------------------------
Portfolio turnover rate 297% + 202% 54% 75% 67% #
--------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by adviser 2.75% # 2.89% 2.88% 2.98% 3.27% #
--------------------------------------------------------------------------------
</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.
15
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Small Cap Fund
-----------------------------------------------
Class C
-----------------------------------------------
Six months Year Year Year 3/04/96*
Ended Ended Ended Ended to
4/30/00** 10/31/99 10/31/98 10/31/97 10/31/96
(unaudited)
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period $18.37 $13.66 $13.71 $13.37 $12.50
--------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) (0.28) (0.31) (0.12) (0.11) (0.01)
Net realized and unrealized
gain/(loss) on investments
and foreign currency 8.72 5.02 0.07 0.45 0.88
----------------------------------------------
Total from investment
operations 8.44 4.71 (0.05) 0.34 0.87
----------------------------------------------
Distributions
Distributions from realized
capital gains (4.67) - - - -
--------------------------------------------------------------------------------
Net Asset Value, End of Period $22.14 $18.37 $13.66 $13.71 $13.37
--------------------------------------------------------------------------------
Total Return 46.44% + 34.48% (0.36%) 2.54% 6.96% +
--------------------------------------------------------------------------------
Ratios/Supplemental Data
--------------------------------------------------------------------------------
Net assets, end of period
(000's) $12,348 $5,972 $6,195 $7,025 $5,517
--------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 2.66% # 2.55% 2.55% 2.55% 2.55% #
--------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (2.18%) # (1.53) (0.78%) (0.84%) (0.15%) #
--------------------------------------------------------------------------------
Portfolio turnover rate 297% + 202% 54% 75% 67% #
--------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by adviser 2.76% # 2.89% 2.88% 2.96% 3.25% #
--------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Equity Fund
(formerly the International Growth and Income Fund)
------------------------------------------------------------
Class A
------------------------------------------------------------
Six months Year Year Year Year 1/09/95*
Ended Ended Ended Ended Ended to
4/30/00** 10/31/99** 10/31/98 10/31/97 10/31/96** 10/31/95
(unaudited)
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $11.89 $9.83 $10.81 $11.35 $10.11 $10.00
---------------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) (0.04) 0.02 0.03 0.06 0.09 0.06
Net realized and
unrealized gain/(loss)
on investments and
foreign currency 0.72 2.07 0.02 0.35 1.33 0.08
----------------------------------------------------------
Total from investment
operations 0.68 2.09 0.05 0.41 1.42 0.14
----------------------------------------------------------
Distributions
Dividends from net
investment income (0.10) - (0.13) (0.19) (0.08) (0.03)
Distributions from
realized capital gains (0.92) (0.03) (0.90) (0.76) (0.10) -
----------------------------------------------------------
Total distributions (1.02) (0.03) (1.03) (0.95) (0.18) (0.03)
---------------------------------------------------------------------------------------
Net Asset Value, End of
Period $11.55 $11.89 $9.83 $10.81 $11.35 $10.11
---------------------------------------------------------------------------------------
Total Return 5.63% + 21.33% 0.67% 3.55% 14.25% 1.37% +
---------------------------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------------------------
Net assets, end of
period (000's) $4,716 $3,997 $3,769 $4,461 $4,732 $6,897
---------------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 1.87% # 1.75% 1.75% 1.75% 1.75% 1.75% #
---------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets (0.71%) # 0.18% 0.44% 0.97% 0.84% 0.70% #
---------------------------------------------------------------------------------------
Portfolio turnover rate 32% + 142% 173% 146% 170% 69%
---------------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 1.99% # 1.98% 1.87% 1.96% 1.97% 2.18% #
---------------------------------------------------------------------------------------
</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.
16
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Equity Fund ##
--------------------------------------------------------------
Class B
--------------------------------------------------------------
Six months Year Year Year Year 1/09/95*
Ended Ended Ended Ended Ended to
4/30/00** 10/31/99** 10/31/98 10/31/97** 10/31/96** 10/31/95
(unaudited)
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $11.74 $9.77 $10.75 $11.30 $10.10 $10.00
-----------------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) (0.08) (0.05) (0.02) 0.03 0.06 0.01
Net realized and
unrealized gain/(loss)
on investments and
foreign currency 0.71 2.05 0.00 0.31 1.30 0.12
------------------------------------------------------------
Total from investment
operations 0.63 2.00 (0.02) 0.34 1.36 0.13
------------------------------------------------------------
Distributions
Dividends from net
investment income (0.02) - (0.06) (0.13) (0.05) (0.03)
Distributions from
realized capital gains (0.92) (0.03) (0.90) (0.76) (0.11) -
------------------------------------------------------------
Total distributions ((0.94) (0.03) (0.96) (0.89) (0.16) (0.03)
-----------------------------------------------------------------------------------------
Net Asset Value, End of
Period $11.43 $11.74 $9.77 $10.75 $11.30 $10.10
-----------------------------------------------------------------------------------------
Total Return 5.25% + 20.53% (0.03%) 2.92% 13.58% 1.28% +
-----------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------
Net assets, end of
period (000's) $13,853 $14,269 $14,030 $16,334 $15,217 $8,421
-----------------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 2.53% # 2.40% 2.40% 2.40% 2.40% 2.40% #
-----------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets (1.39%) # (0.45%) (0.18%) 0.32% 0.57% 0.15% #
-----------------------------------------------------------------------------------------
Portfolio turnover rate 32% + 142% 173% 146% 170% 69%
-----------------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 2.64% # 2.63% 2.52% 2.54% 2.60% 2.93% #
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
<CAPTION>
International Equity Fund ##
--------------------------------------------------------------
Class C
--------------------------------------------------------------
Six months Year Year Year Year 1/09/95*
Ended Ended Ended Ended Ended to
4/30/00** 10/31/99** 10/31/98 10/31/97** 10/31/96** 10/31/95
(unaudited)
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $11.74 $9.77 $10.76 $11.31 $10.10 $10.00
-----------------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) (0.08) (0.05) (0.02) 0.03 0.06 0.01
Net realized and
unrealized gain/(loss)
on investments and
foreign currency 0.71 2.05 (0.01) 0.31 1.30 0.12
------------------------------------------------------------
Total from investment
operations 0.63 2.00 (0.03) 0.34 1.36 0.13
------------------------------------------------------------
Distributions
Dividends from net
investment income (0.02) - (0.06) (0.13) (0.05) (0.03)
Distributions from
realized capital gains (0.92) (0.03) (0.90) (0.76) (0.10) -
------------------------------------------------------------
Total distributions ((0.94) (0.03) (0.96) (0.89) (0.15) (0.03)
-----------------------------------------------------------------------------------------
Net Asset Value, End of
Period $11.43 $11.74 $9.77 $10.76 $11.31 $10.10
-----------------------------------------------------------------------------------------
Total Return 5.25% + 20.53% (0.13%) 2.91% 13.63% 1.28% +
-----------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------
Net assets, end of
period (000's) $6,611 $6,680 $7,960 $8,460 $9,076 $6,324
-----------------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 2.53% # 2.40% 2.40% 2.40% 2.40% 2.40% #
-----------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets (1.38%) # (0.49%) (0.19%) 0.32% 0.51% 0.13% #
-----------------------------------------------------------------------------------------
Portfolio turnover rate 32% + 142% 173% 146% 170% 69%
-----------------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 2.64% # 2.62% 2.52% 2.57% 2.60% 2.93% #
-----------------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations
** Net investment income per share has been calculated using the average
share method
# Annualized
+ Non-annualized
## Formerly the International Growth and Income Fund
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>
Global Equity Fund
-----------------------------------------------------------
Class A
-----------------------------------------------------------
Six months Year Year Year 1/09/95
Ended Year Ended Ended Ended Ended to
4/30/00** 10/31/99** 10/31/98 10/31/97 10/31/96* 10/31/95
(unaudited)
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $16.12 $16.43 $16.32 $14.50 $13.84 $14.82
-------------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) (0.01) 0.08 0.02 0.06 (0.04) -
Net realized and
unrealized gain/(loss)
on investments and
foreign currency (1.89) 0.82 1.34 3.45 0.91 (0.54)
----------------------------------------------------------
Total from investment
operations (1.90) 0.90 1.36 3.51 0.87 (0.54)
----------------------------------------------------------
Distributions
Dividends from net
investment income - - (0.22) (0.05) (0.21) -
Distributions from
realized capital gains (2.14) (1.21) (1.03) (1.64) - (0.44)
----------------------------------------------------------
Total distributions (2.14) (1.21) (1.25) (1.69) (0.21) (0.44)
-------------------------------------------------------------------------------------
Net Asset Value, End of
Period $12.08 $16.12 $16.43 $16.32 $14.50 $13.84
-------------------------------------------------------------------------------------
Total Return (13.72) + 5.60% 8.90% 26.10% 6.33% (3.52%)
-------------------------------------------------------------------------------------
Ratios/Supplemental Data
-------------------------------------------------------------------------------------
Net assets, end of
period (000's) $8,200 $12,757 $31,055 $30,960 $25,924 $23,894
-------------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 1.85% # 1.75% 1.75% 1.75% 1.75% 1.75%
-------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets (0.18) # 0.47% 0.09% 0.33% (0.30%) 0.03%
-------------------------------------------------------------------------------------
Portfolio turnover rate 124% + 38% 20% 28% 165% 57%
-------------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 2.02% # 1.84% 1.75% 1.81% 1.83% 1.92%
-------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Global Equity Fund
------------------------------------------------------------
Class B
------------------------------------------------------------
Six months Year Year Year 1/09/95
Ended Year Ended Ended Ended Ended to
4/30/00** 10/31/99** 10/31/98 10/31/97 10/31/96* 10/31/95
(unaudited)
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $15.83 $16.24 $16.14 $14.36 $13.73 $14.79
--------------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) (0.06) (0.04) (0.11) (0.05) (0.14) (0.09)
Net realized and
unrealized gain/(loss)
on investments and
foreign currency (1.84) 0.84 1.35 3.47 0.91 (0.53)
-----------------------------------------------------------
Total from investment
operations (1.90) 0.80 1.24 3.42 0.77 (0.62)
-----------------------------------------------------------
Distributions
Dividends from net
investment income - - (0.11) (0.14) -
Distributions from
realized capital gains (2.14) (1.21) (1.03) (1.64) - (0.44)
-----------------------------------------------------------
Total distributions (2.14) (1.21) (1.14) (1.64) (0.14) (0.44)
--------------------------------------------------------------------------------------
Net Asset Value, End of
Period $11.79 $15.83 $16.24 $16.14 $14.36 $13.73
--------------------------------------------------------------------------------------
Total Return (14.00%) + 5.01% 8.17% 25.63% 5.64% (4.09%)
--------------------------------------------------------------------------------------
Ratios/Supplemental Data
--------------------------------------------------------------------------------------
Net assets, end of
period (000's) $16,314 $25,381 $30,287 $31,833 $25,661 $23,317
--------------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 2.51% # 2.40% 2.40% 2.40% 2.40% 2.40%
--------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets (0.83%) # (0.25%) (0.55%) (0.32%) (0.95%) (0.61%)
--------------------------------------------------------------------------------------
Portfolio turnover rate 124% + 38% 20% 28% 165% 57%
--------------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 2.67% # 2.50% 2.40% 2.47% 2.48% 2.58%
--------------------------------------------------------------------------------------
</TABLE>
# 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>
Global Equity Fund
-------------------------------------------------------------
Class C
-------------------------------------------------------------
Six months Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
4/30/00** 10/31/99** 10/31/98 10/31/97 10/31/96** 10/31/95
(unaudited)
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $15.89 $16.30 $16.19 $14.41 $13.73 $14.79
---------------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) (0.06) (0.04) (0.10) (0.05) (0.14) (0.09)
Net realized and
unrealized gain/(loss)
on investments and
foreign currency (1.85) 0.84 1.35 3.47 0.92 (0.53)
------------------------------------------------------------
Total from investment
operations (1.91) 0.80 1.25 3.42 0.78 (0.62)
------------------------------------------------------------
Distributions
Dividends from net
investment income - - (0.11) - (0.10) -
Distributions from
realized capital gains (2.14) (1.21) (1.03) (1.64) - (0.44)
------------------------------------------------------------
Total distributions (2.14) (1.21) (1.14) (1.64) (0.10) (0.44)
---------------------------------------------------------------------------------------
Net Asset Value, End of
Period $11.84 $15.89 $16.30 $16.19 $14.41 $13.73
---------------------------------------------------------------------------------------
Total Return (14.01%) + 4.99% 8.21% 25.54% 5.70% (4.09%)
---------------------------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------------------------
Net assets, end of
period (000's) $27,732 $45,201 $57,774 $61,245 $64,830 $83,340
---------------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 2.51% # 2.40% 2.40% 2.40% 2.40% 2.40%
---------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets (0.83%) # (0.24%) (0.56%) (0.32%) (0.95%) (0.64%)
---------------------------------------------------------------------------------------
Portfolio turnover rate 124% + 38% 20% 28% 165% 57%
---------------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 2.67% # 2.50% 2.40% 2.46% 2.48% 2.53%
---------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Small Cap Growth Fund
(formerly Emerging Growth Fund)
-------------------------------
Class A
-------------------------------
Six months Year 1/06/98*
Ended Ended to
4/30/00** 10/31/99** 10/31/98
(unaudited)
------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $12.81 $8.88 $10.00
------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) (0.11) (0.15) (0.08)
Net realized and unrealized gain/(loss) on
investments and foreign currency 5.55 4.08 (1.04)
-------------------------------
Total from investment operations 5.44 3.93 (1.12)
-------------------------------
Distributions
Distributions from capital gains (0.08)
------------------------------------------------------------------------------
Net Asset Value, End of Period $18.17 $12.81 $8.88
------------------------------------------------------------------------------
Total Return 42.57% + 44.26% (11.20%)
------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------
Net assets, end of period (000's) $1,106 $224 $146
------------------------------------------------------------------------------
Ratio of total expenses to average net assets 1.80% # 1.70% 1.70%
------------------------------------------------------------------------------
Ratio of net investment income (loss) to
average net assets (1.15%) # (1.43%) (1.00%)
------------------------------------------------------------------------------
Portfolio turnover rate 56% + 129% 52%
------------------------------------------------------------------------------
Expense ratio before expense reimbursement by
adviser 3.05% # 6.96% 15.48%
------------------------------------------------------------------------------
</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.
19
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Small Cap Growth Fund (formerly Emerging Growth Fund)
-----------------------------------------------------------------
Class B Class C
------------------------------- -------------------------------
Six months Year 1/06/98* Six months Year 1/06/98*
Ended Ended to Ended Ended to
4/30/00** 10/31/99** 10/31/98 4/30/00** 10/31/99** 10/31/98
(unaudited)
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $12.57 $8.83 $10.00 $12.57 $8.84 $10.00
---------------------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) (0.17) (0.21) (0.12) (0.17) (0.21) (0.12)
Net realized and
unrealized gain/(loss)
on investments and
foreign currency 5.43 3.95 (1.05) 5.44 3.94 (1.04)
-----------------------------------------------------------------
Total from investment
operations 5.26 3.74 (1.17) 5.27 3.73 (1.16)
-----------------------------------------------------------------
Distributions
Distributions from
capital gains (0.08) (0.08)
---------------------------------------------------------------------------------------------
Net Asset Value, End of
Period $17.75 $12.57 $8.83 $17.76 $12.57 $8.84
---------------------------------------------------------------------------------------------
Total Return 41.95% + 42.36% (11.70%) + 42.03% 42.19% (11.60%)
---------------------------------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------------------------------
Net assets, end of
period (000's) $2,208 $660 $263 $2,367 $440 $238
---------------------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 2.45% # 2.35% 2.35% # 2.45% # 2.35% 2.35% #
---------------------------------------------------------------------------------------------
Ratio of net investment
income to average net
assets (1.80%) # (2.04%) (1.76%) # (1.79%) # (2.03%) (1.67%) #
---------------------------------------------------------------------------------------------
Portfolio turnover rate 56% + 129% 52% # 56% + 129% 52% #
---------------------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 3.73% # 7.58% 16.48% # 3.70% # 7.60% 15.78% #
---------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Mid Cap Growth Fund (formerly Small/Mid Cap Fund)
-------------------------------------------------
Class A
-------------------------------------------------
Six months Year Year 3/04/96*
Ended Year Ended Ended Ended to
4/30/00** 10/31/99** 10/31/98 10/31/97 10/31/96
(unaudited)
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period $18.52 $16.09 $15.51 $12.62 $12.50
---------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) (0.14) (0.21) (0.15) (0.14) (0.02)
Net realized and unrealized
gain/(loss) on
investments and foreign
currency 4.81 4.12 0.97 3.03 0.14
------------------------------------------------
Total from investment
operations 4.67 3.91 0.82 2.89 0.12
------------------------------------------------
Distributions
Distributions from realized
capital gains (3.18) (1.48) (0.24) - -
---------------------------------------------------------------------------------
Net Asset Value, End of
Period $20.01 $18.52 $16.09 $15.51 $12.62
---------------------------------------------------------------------------------
Total Return 25.98% + 25.50% 5.51% 22.90% 0.96% +
---------------------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------------------
Net assets, end of period
(000's) $7,728 $5,970 $4,814 $4,170 $2,966
---------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 1.76% # 1.68% 1.68% 1.68% 1.68% #
---------------------------------------------------------------------------------
Ratio of net investment
income (loss) to average
net assets (1.39%) # (1.15%) (0.90%) (1.02%) (0.40%) #
---------------------------------------------------------------------------------
Portfolio turnover rate 174% + 181% 162% 145% 92% #
---------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by adviser 1.91% # 1.89% 1.93% 2.24% 2.69% #
---------------------------------------------------------------------------------
</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.
20
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Mid Cap Growth Fund (formerly Small/Mid Cap Fund)
---------------------------------------------------
Class B
---------------------------------------------------
Six months Year Year Year 3/04/96*
Ended Ended Ended Ended to
4/30/00** 10/31/99** 10/31/98 10/31/97** 10/31/96
(unaudited)
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period $17.99 $15.77 $15.33 $12.58 $12.50
--------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) (0.20) (0.32) (0.25) (0.23) (0.05)
Net realized and
unrealized gain/(loss) on
investments and foreign
currency 4.66 4.02 0.93 2.98 0.13
--------------------------------------------------
Total from investment
operations 4.46 3.70 0.68 2.75 0.08
--------------------------------------------------
Distributions
Distributions from
realized capital gains (3.18) (1.48) (0.24) - -
--------------------------------------------------------------------------------
Net Asset Value, End of
Period $19.27 $17.99 $15.77 $15.33 $12.58
--------------------------------------------------------------------------------
Total Return 25.53% + 24.62% 4.65% 21.86% 0.64% +
--------------------------------------------------------------------------------
Ratios/Supplemental Data
--------------------------------------------------------------------------------
Net assets, end of period
(000's) $22,411 $17,184 $13,972 $11,802 $6,659
--------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 2.42% # 2.33% 2.33% 2.33% 2.33% #
--------------------------------------------------------------------------------
Ratio of net investment
income (loss) to average
net assets (2.04%) # (1.80%) (1.55%) (1.67%) (1.05%) #
--------------------------------------------------------------------------------
Portfolio turnover rate 174% + 181% 162% 145% 92% #
--------------------------------------------------------------------------------
Expense ratio before
expense reimbursement by
adviser 2.57% # 2.54% 2.58% 2.79% 3.05% #
--------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Mid Cap Growth Fund (formerly Small/Mid Cap Fund)
---------------------------------------------------
Class C
---------------------------------------------------
Six months Year Year Year 3/04/96*
Ended Ended Ended Ended to
4/30/00** 10/31/99** 10/31/98 10/31/97** 10/31/96
(unaudited)
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period $18.02 $15.79 $15.35 $12.59 $12.50
--------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) (0.20) (0.32) (0.25) (0.23) (0.05)
Net realized and
unrealized gain/(loss) on
investments and foreign
currency 4.67 4.03 0.93 2.99 0.14
--------------------------------------------------
Total from investment
operations 4.47 3.71 0.68 2.76 0.09
--------------------------------------------------
Distributions
Distributions from
realized capital gains (3.18) (1.48) (0.24) - -
--------------------------------------------------------------------------------
Net Asset Value, End of
Period $19.31 $18.02 $15.79 $15.35 $12.59
--------------------------------------------------------------------------------
Total Return 25.54% + 24.65% 4.64% 21.92% 0.72% +
--------------------------------------------------------------------------------
Ratios/Supplemental Data
--------------------------------------------------------------------------------
Net assets, end of period
(000's) $22,822 $18,939 $16,221 $13,471 $8,241
--------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 2.42% # 2.33% 2.33% 2.33% 2.33% #
--------------------------------------------------------------------------------
Ratio of net investment
income (loss) to average
net assets (2.04%) # (1.80%) (1.55%) (1.67%) (1.05%) #
--------------------------------------------------------------------------------
Portfolio turnover rate 174% + 181% 162% 145% 92% #
--------------------------------------------------------------------------------
Expense ratio before
expense reimbursement by
adviser 2.57% # 2.54% 2.58% 2.78% 3.04% #
--------------------------------------------------------------------------------
</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.
21
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Large Cap Growth Fund (formerly Growth Equity Fund)
------------------------------------------------------------
Class A
------------------------------------------------------------
Six months Year Year Year 3/04/96*
Ended Ended Ended Ended to
4/30/00** 10/31/99** 10/31/98 10/31/97 10/31/96
(unaudited)
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $21.44 $17.73 $17.01 $13.78 $12.50
-----------------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) (0.13) (0.19) (0.07) (0.03) 0.28
Net realized and
unrealized gain/(loss)
on investments and
foreign currency 3.55 5.05 2.22 3.45 1.00
------------------------------------------------------------
Total from investment
operations 3.42 4.86 2.15 3.42 1.28
------------------------------------------------------------
Distributions
Dividends from net
investment income - - - (0.19) -
Distributions from
capital gains (2.96) (1.15) (1.43) - -
------------------------------------------------------------
Total distributions (2.96) (1.15) (1.43) (0.19)
-----------------------------------------------------------------------------------------
Net Asset Value, End of
Period $21.90 $21.44 $17.73 $17.01 $13.78
-----------------------------------------------------------------------------------------
Total Return 15.97% + 28.57% 13.85% 25.13% 10.24% +
-----------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------
Net assets, end of
period (000's) $6,633 $5,656 $3,919 $3,053 $2,244
-----------------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 1.75% # 1.65% 1.65% 1.65% 1.65% #
-----------------------------------------------------------------------------------------
Ratio of net investment
income to average net
assets (1.12%) # (0.94) (0.43%) (0.17%) 4.11% #
-----------------------------------------------------------------------------------------
Portfolio turnover rate 89% + 145% 115% 181% 450% #
-----------------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 1.85% # 1.90% 1.91% 2.28% 2.71% #
-----------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Large Cap Growth Fund (formerly Growth Equity Fund)
-------------------------------------------------------------
Class B
-------------------------------------------------------------
Six months Year Year Year 3/04/96*
Ended Ended Ended Ended to
4/30/00** 10/31/99** 10/31/98 10/31/97 10/31/96
(unaudited)
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $20.96 $17.46 $16.90 $13.73 $12.50
------------------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) (0.20) (0.31) (0.18) (0.13) 0.24
Net realized and
unrealized gain/(loss)
on investments and
foreign currency 3.47 4.96 2.17 3.46 0.99
-------------------------------------------------------------
Total from investment
operations 3.27 4.65 1.99 3.33 1.23
-------------------------------------------------------------
Distributions
Dividends from net
investment income - - - (0.16) -
Distributions from
capital gains (2.96) (1.15) (1.43) - -
-------------------------------------------------------------
Total distributions (2.96) (1.15) (1.43) (0.16)
------------------------------------------------------------------------------------------
Net Asset Value, End of
Period $21.27 $20.96 $17.46 $16.90 $13.73
------------------------------------------------------------------------------------------
Total Return 15.58% + 27.77% 12.93% 24.50% 9.84% +
------------------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------------------
Net assets, end of
period (000's) $23,250 $17,171 $11,659 $9,040 $4,748
------------------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 2.40% # 2.30% 2.30% 2.30% 2.30% #
------------------------------------------------------------------------------------------
Ratio of net investment
income to average net
assets (1.77%) # (1.58) (1.07%) (0.82%) 4.18% #
------------------------------------------------------------------------------------------
Portfolio turnover rate 89% + 145% 115% 181% 450% #
------------------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 2.50% # 2.52% 2.56% 2.78% 3.06% #
------------------------------------------------------------------------------------------
</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.
22
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Large Cap Growth Fund (formerly Growth Equity
Fund)
-------------------------------------------------
Class C
-------------------------------------------------
Six months Year Year Year 3/04/96*
Ended Ended Ended Ended to
4/30/00** 10/31/99** 10/31/98 10/31/97 10/31/96
(unaudited)
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period $20.93 $17.44 $16.89 $13.73 $12.50
---------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) (0.20) (0.31) (0.20) (0.13) 0.24
Net realized and unrealized
gain/(loss) on investments
and foreign currency 3.48 4.95 2.18 3.46 0.99
-----------------------------------------------
Total from investment
operations 3.28 4.64 1.98 3.33 1.23
-----------------------------------------------
Distributions
Dividends from net
investment income - - - (0.17) -
Distributions from capital
gains (2.96) (1.15) (1.43) - -
-----------------------------------------------
Total distributions (2.96) (1.15) (1.43) (0.17) -
---------------------------------------------------------------------------------
Net Asset Value, End of
Period $21.25 $20.93 $17.44 $16.89 $13.73
---------------------------------------------------------------------------------
Total Return 15.66% + 27.75% 12.87% 24.50% 9.84% +
---------------------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------------------
Net assets, end of period
(000's) $26,525 $19,463 $12,965 $12,766 $6,494
---------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 2.40% # 2.30% 2.30% 2.30% 2.30% #
---------------------------------------------------------------------------------
Ratio of net investment
income to average net
assets (1.77%) # (1.58%) (1.06%) (0.82%) 4.13% #
---------------------------------------------------------------------------------
Portfolio turnover rate 89% + 145% 115% 181% 450% #
---------------------------------------------------------------------------------
Expense ratio before expense
reimbursement by adviser 2.51% # 2.52% 2.56% 2.75% 2.96% #
---------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Tax-Sensitive Equity Fund
-------------------------------
Class A
-------------------------------
Six months Year 1/06/98*
Ended Ended to
4/30/00** 10/31/99** 10/31/98
(unaudited)
-------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $9.49 $9.07 $10.00
-------------------------------------------------------------------------------
Investment Operations:
Net investment income/(loss) (0.02) (0.05) (0.01)
Net realized and unrealized gain/(loss) on
investments and foreign currency 0.51 0.47 (0.92)
------------------------------
Total from investment operations 0.49 0.42 (0.93)
-------------------------------------------------------------------------------
Net Asset Value, End of Period $9.98 $9.49 $9.07
-------------------------------------------------------------------------------
Total Return 5.16% + 4.63% (9.30%) +
-------------------------------------------------------------------------------
Ratios/Supplemental Data
-------------------------------------------------------------------------------
Net assets, end of period (000's) $277 $ 1,526 $4,149
-------------------------------------------------------------------------------
Ratio of total expenses to average net assets 1.60% # 1.60% 1.60% #
-------------------------------------------------------------------------------
Ratio of net investment income (loss) to
average net assets (0.47%) # (0.48%) (0.40%) #
-------------------------------------------------------------------------------
Portfolio turnover rate 4% + 56% 38% +
-------------------------------------------------------------------------------
Expense ratio before expense reimbursement by
adviser 2.53% # 2.05% 2.51% #
-------------------------------------------------------------------------------
</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.
23
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Tax-Sensitive Equity Fund
---------------------------------------------------------------------
Class B Class C
-------------------------------- --------------------------------
Six months Year 1/06/98* Six months Year 1/06/98*
Ended Ended to Ended Ended to
4/30/00** 10/31/99 ** 10/31/98 4/30/00** 10/31/99 ** 10/31/98
(unaudited)
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $9.36 $9.04 $10.00 $9.35 $9.04 $10.00
-------------------------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) (0.05) (0.11) (0.04) *** (0.05) (0.11) (0.03) **
Net realized and
unrealized gain/(loss)
on investments and
foreign currency 0.48 0.43 (0.92) 0.46 0.42 (0.93)
--------------------------------------------------------------------
Total from investment
operations 0.43 0.32 (0.96) 0.41 0.31 (0.96)
-------------------------------------------------------------------------------------------------
Net Asset Value, End of
Period $9.79 $9.36 $9.04 $9.76 $9.35 $9.04
-------------------------------------------------------------------------------------------------
Total Return 4.59% + 3.54% (9.60%) + 4.39% + 3.43% (9.60%) +
-------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------
Net assets, end of
period (000's) $2,450 $3,724 $2,900 $2,627 $3,723 $3,286
-------------------------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 2.25% # 2.25% 2.25% # 2.25% # 2.25% 2.25% #
-------------------------------------------------------------------------------------------------
Ratio of net investment
income to average net
assets (1.13%) # (1.14%) (1.80%) # (1.13%) # (1.14%) (1.84%) #
-------------------------------------------------------------------------------------------------
Portfolio turnover rate 4% + 56% 38% + 4% + 56% 38% +
-------------------------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 3.35% # 2.71% 3.24% # 3.37% # 2.71% 3.16% #
-------------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth & Income Fund
--------------------------------------------------------------
Class A
--------------------------------------------------------------
Six months Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
4/30/00** 10/31/99 ** 10/31/98 10/31/97 10/31/96 10/31/95 **
(unaudited)
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $28.78 $24.26 $21.77 $17.56 $14.72 $13.09
----------------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) (0.03) 0.03 0.08 0.14 0.18 0.26
Net realized and
unrealized gain/(loss)
on investments and
foreign currency 1.58 5.45 4.14 5.26 2.99 1.90
----------------------------------------------------------
Total from investment
operations 1.55 5.48 4.22 5.40 3.17 2.16
----------------------------------------------------------
Distributions
Dividends from net
investment income - - - (0.15) (0.21) (0.23)
Distributions from
realized capital gains (2.47) (0.96) (1.70) (1.04) (0.12) (0.30)
Distributions in excess
of net investment
income - - (0.03) - - -
----------------------------------------------------------
Total distributions (2.47) (0.96) (1.73) (1.19) (0.33) (0.53)
----------------------------------------------------------------------------------------
Net Asset Value, End of
Period $27.86 $28.78 $24.26 $21.77 $17.56 $14.72
----------------------------------------------------------------------------------------
Total Return 5.41% + 23.11% 20.82% 31.95% 21.84% 17.28%
----------------------------------------------------------------------------------------
Ratios/Supplemental Data
----------------------------------------------------------------------------------------
Net assets, end of
period (000's) $37,294 $37,210 $42,916 $34,186 $18,272 $12,180
----------------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 1.44% # 1.34% 1.34% 1.34% 1.34% 1.34%
----------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets (0.25%) # 0.11% 0.34% 0.66% 1.10% 1.91%
----------------------------------------------------------------------------------------
Portfolio turnover rate 10% + 28% 18% 39% 49% 40%
----------------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 1.62% # 1.49% 1.45% 1.50% 1.56% 1.69%
----------------------------------------------------------------------------------------
</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.
24
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth & Income Fund
------------------------------------------------------------
Class B
------------------------------------------------------------
Six months Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
4/30/00** 10/31/99* 10/31/98 10/31/97 10/31/96* 10/31/95*
(unaudited)
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $28.28 $24.01 $21.67 $17.50 $14.69 $13.08
--------------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) (0.12) (0.15) (0.07) 0.01 0.07 0.16
Net realized and
unrealized gain/(loss)
on investments and
foreign currency 1.55 5.38 4.11 5.23 2.99 1.94
----------------------------------------------------------
Total from investment
operations 1.43 5.23 4.04 5.24 3.06 2.10
----------------------------------------------------------
Distributions
Dividends from net
investment income - - - (0.03) (0.13) (0.19)
Distributions from
realized capital gains (2.47) (0.96) (1.70) (1.04) (0.12) (0.30)
----------------------------------------------------------
Total distributions (2.47) (0.96) (1.70) (1.07) (0.25) (0.49)
--------------------------------------------------------------------------------------
Net Asset Value, End of
Period $27.24 $28.28 $24.01 $21.67 $17.50 $14.69
--------------------------------------------------------------------------------------
Total Return 5.06% + 22.28% 20.04% 31.40% 21.08% 16.73%
--------------------------------------------------------------------------------------
Ratios/Supplemental Data
--------------------------------------------------------------------------------------
Net assets, end of
period (000's) $101,640 $104,695 $75,574 $54,871 $34,740 $19,052
--------------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 2.09% # 1.99% 1.99% 1.99% 1.99% 1.99%
--------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets (0.90%) # (0.54%) (0.32%) 0.01% 0.45% 1.14%
--------------------------------------------------------------------------------------
Portfolio turnover rate 10% + 28% 18% 39% 49% 40%
--------------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 2.27% # 2.13% 2.10% 2.15% 2.20% 2.33%
--------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth & Income Fund
----------------------------------------------------------
Class C
----------------------------------------------------------
Six months Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
4/30/00** 10/31/99* 10/31/98 10/31/97 10/31/96 10/31/95
(unaudited)
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $28.39 $24.10 $21.75 $17.56 $14.71 $13.08
------------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) (0.12) (0.15) (0.07) 0.01 0.07 0.18
Net realized and
unrealized gain/(loss)
on investments and
foreign currency 1.56 5.40 4.12 5.25 3.00 1.90
---------------------------------------------------------
Total from investment
operations 1.44 5.25 4.05 5.26 3.07 2.08
---------------------------------------------------------
Distributions
Dividends from net
investment income - - - (0.03) (0.10) (0.15)
Distributions from
realized capital gains (2.47) (0.96) (1.70) (1.04) (0.12) (0.30)
---------------------------------------------------------
Total distributions (2.47) (0.96) (1.70) (1.07) (0.22) (0.45)
------------------------------------------------------------------------------------
Net Asset Value, End of
Period $27.36 $28.39 $24.10 $21.75 $17.56 $14.71
------------------------------------------------------------------------------------
Total Return 5.08% + 22.28% 20.00% 31.37% 21.12% 16.56%
------------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------------
Net assets, end of
period (000's) $152,551 $156,056 $122,395 $98,250 $74,825 $63,154
------------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 2.09% # 1.99% 1.99% 1.99% 1.99% 1.99%
------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets (0.90%) # (0.54%) (0.31%) 0.01% 0.45% 1.26%
------------------------------------------------------------------------------------
Portfolio turnover rate 10% + 28% 18% 39% 49% 40%
------------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 2.27% # 2.13% 2.10% 2.13% 2.20% 2.26%
------------------------------------------------------------------------------------
</TABLE>
* 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.
25
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Equity-Income Fund
-----------------------------------------------------------
Class A
-----------------------------------------------------------
Six months Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
4/30/00** 10/31/99* 10/31/98 10/31/97 10/31/96 10/31/95*
(unaudited)
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $16.91 $17.64 $17.44 $17.37 $15.94 $14.78
-------------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) 0.07 0.22 0.29 0.33 0.16 0.12
Net realized and
unrealized gain/(loss)
on investments and
foreign currency (1.79) 0.46 1.46 3.59 2.69 1.83
---------------------------------------------------------
Total from investment
operations (1.72) 0.68 1.75 3.92 2.85 1.95
---------------------------------------------------------
Distributions
Dividends from net
investment income (0.19) (0.29) (0.33) (0.18) (0.14) -
Distributions from
realized capital gains (3.37) (1.12) (1.22) (3.67) (1.28) (0.79)
---------------------------------------------------------
Total distributions (3.56) (1.41) (1.55) (3.85) (1.42) (0.79)
-------------------------------------------------------------------------------------
Net Asset Value, End of
Period $11.63 $16.91 $17.64 $17.44 $17.37 $15.94
-------------------------------------------------------------------------------------
Total Return (10.82%) + 3.93% 10.55% 27.24% 19.23% 14.22%
-------------------------------------------------------------------------------------
Ratios/Supplemental Data
-------------------------------------------------------------------------------------
Net assets, end of
period (000's) $8,858 $13,990 $36,661 $36,334 $28,470 $22,026
-------------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 1.45% # 1.40% 1.42% 1.34% 1.34% 1.34%
-------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets 1.07% # 1.30% 1.57% 2.01% 0.98% 0.79%
-------------------------------------------------------------------------------------
Portfolio turnover rate 23% + 73% 22% 36% 169% 54%
-------------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 1.76% # 1.58% 1.51% 1.55% 1.55% 1.62%
-------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Equity-Income Fund
-----------------------------------------------------------
Class B
-----------------------------------------------------------
Six months Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
4/30/00** 10/31/99* 10/31/98 10/31/97 10/31/96 10/31/95*
(unaudited)
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $16.71 $17.43 $17.24 $17.22 $15.84 $14.77
-------------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) 0.03 0.10 0.16 0.23 0.06 0.02
Net realized and
unrealized gain/(loss)
on investments and
foreign currency (1.78) 0.47 1.46 3.54 2.69 1.84
---------------------------------------------------------
Total from investment
operations (1.75) 0.57 1.62 3.77 2.75 1.86
---------------------------------------------------------
Distributions
Dividends from net
investment income (0.09) (0.17) (0.21) (0.08) (0.09) -
Distributions from
realized capital gains (3.37) (1.12) (1.22) (3.67) (1.28) (0.79)
---------------------------------------------------------
Total distributions (3.46) (1.29) (1.43) (3.75) (1.37) (0.79)
-------------------------------------------------------------------------------------
Net Asset Value, End of
Period $11.50 $16.71 $17.43 $17.24 $17.22 $15.84
-------------------------------------------------------------------------------------
Total Return (11.18%) + 3.30% 9.81% 26.29% 18.59% 13.58%
-------------------------------------------------------------------------------------
Ratios/Supplemental Data
-------------------------------------------------------------------------------------
Net assets, end of
period (000's) $18,267 $31,659 $38,954 $36,191 $27,058 $19,874
-------------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 2.11% # 2.04% 2.07% 1.99% 1.99% 1.99%
-------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets 0.43% # 0.58% 0.93% 1.36% 0.33% 0.13%
-------------------------------------------------------------------------------------
Portfolio turnover rate 23% + 73% 22% 36% 169% 54%
-------------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 2.41% # 2.23% 2.16% 2.21% 2.20% 2.32%
-------------------------------------------------------------------------------------
</TABLE>
* 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.
26
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Equity-Income Fund
-----------------------------------------------------------
Class C
-----------------------------------------------------------
Six months Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
4/30/00** 10/31/99* 10/31/98 10/31/97 10/31/96 10/31/95*
(unaudited)
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $16.80 $17.53 $17.33 $17.27 $15.84 $14.77
-------------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) 0.03 0.10 0.17 0.23 0.06 0.02
Net realized and
unrealized gain/(loss)
on investments and
foreign currency (1.78) 0.46 1.46 3.56 2.69 1.84
---------------------------------------------------------
Total from investment
operations (1.75) 0.56 1.63 3.79 2.75 1.86
---------------------------------------------------------
Distributions
Dividends from net
investment income (0.09) (0.17) (0.21) (0.06) (0.04) -
Distributions from
realized capital gains (3.37) (1.12) (1.22) (3.67) (1.28) (0.79)
---------------------------------------------------------
Total distributions (3.46) (1.29) (1.43) (3.73) (1.32) (0.79)
-------------------------------------------------------------------------------------
Net Asset Value, End of
Period $11.59 $16.80 $17.53 $17.33 $17.27 $15.84
-------------------------------------------------------------------------------------
Total Return (11.11%) + 3.22% 9.83% 26.33% 18.53% 13.58%
-------------------------------------------------------------------------------------
Ratios/Supplemental Data
-------------------------------------------------------------------------------------
Net assets, end of
period (000's) $41,768 $70,200 $95,986 $94,649 $83,855 $83,719
-------------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 2.11% # 2.04% 2.07% 1.99% 1.99% 1.99%
-------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets 0.42% # 0.59% 0.93% 1.36% 0.33% 0.15%
-------------------------------------------------------------------------------------
Portfolio turnover rate 23% + 73% 22% 36% 169% 54%
-------------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 2.41% # 2.23% 2.10% 2.19% 2.20% 2.23%
-------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Balanced Fund
-----------------------------------------------------------
Class A
-----------------------------------------------------------
Six months Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
4/30/00** 10/31/99* 10/31/98 10/31/97 10/31/96* 10/31/95*
(unaudited)
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $10.56 $11.48 $12.58 $12.33 $12.02 $11.13
-------------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) 0.07 0.24 0.25 0.34 0.39 0.38
Net realized and
unrealized gain/(loss)
on investments and
foreign currency 0.07 (0.09) 1.04 1.52 1.07 1.35
---------------------------------------------------------
Total from investment
operations 0.14 0.15 1.29 1.86 1.46 1.73
---------------------------------------------------------
Distributions
Dividends from net
investment income (0.28) (0.23) (0.32) (0.45) (0.40) (0.32)
Distributions from
realized capital gains (1.31) (0.84) (2.07) (1.16) (0.75) (0.52)
---------------------------------------------------------
Total distributions (1.59) (1.07) (2.39) (1.61) (1.15) (0.84)
-------------------------------------------------------------------------------------
Net Asset Value, End of
Period $9.11 $10.56 $11.48 $12.58 $12.33 $12.02
-------------------------------------------------------------------------------------
Total Return 2.08% + 1.20% 12.42% 17.01% 13.10% 16.95%
-------------------------------------------------------------------------------------
Ratios/Supplemental Data
-------------------------------------------------------------------------------------
Net assets, end of
period (000's) $4,754 $5,936 $14,415 $12,294 $10,873 $10,033
-------------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 1.49% # 1.39% 1.39% 1.34% 1.34% 1.34%
-------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets 1.54% # 2.18% 2.11% 2.74% 3.32% 3.39%
-------------------------------------------------------------------------------------
Portfolio turnover rate 167% + 198% 185% 211% 253% 226%
-------------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 1.79% # 1.60% 1.53% 1.59% 1.55% 1.69%
-------------------------------------------------------------------------------------
</TABLE>
* 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.
27
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Balanced Fund
------------------------------------------------------------
Class B
------------------------------------------------------------
Six months Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
4/30/00** 10/31/99* 10/31/98 10/31/97* 10/31/96* 10/31/95*
(unaudited)
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $10.49 $11.40 $12.49 $12.26 $11.98 $11.12
--------------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) 0.04 0.18 0.18 0.25 0.31 0.30
Net realized and
unrealized gain/(loss)
on investments and
foreign currency 0.07 (0.10) 1.04 1.53 1.07 1.36
---------------------------------------------------------
Total from investment
operations 0.11 0.08 1.22 1.78 1.38 1.66
---------------------------------------------------------
Distributions
Dividends from net
investment income (0.22) (0.15) (0.24) (0.39) (0.35) (0.28)
Distributions from
realized capital gains (1.31) (0.84) (2.07) (1.16) (0.75) (0.52)
---------------------------------------------------------
Total distributions (1.53) (0.99) (2.31) (1.55) (1.10) (0.80)
--------------------------------------------------------------------------------------
Net Asset Value, End of
Period $9.07 $10.49 $11.40 $12.49 $12.26 $11.98
--------------------------------------------------------------------------------------
Total Return 1.69% + 0.57% 11.71% 16.27% 12.35% 16.31%
--------------------------------------------------------------------------------------
Ratios/Supplemental Data
--------------------------------------------------------------------------------------
Net assets, end of
period (000's) $9,709 $13,958 $18,929 $17,140 $16,219 $9,875
--------------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 2.14% # 2.04% 2.04% 1.99% 1.99% 1.99%
--------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets 0.91% # 1.60% 1.46% 2.09% 2.67% 2.69%
--------------------------------------------------------------------------------------
Portfolio turnover rate 167% + 198% 185% 211% 253% 226%
--------------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 2.44% # 2.25% 2.18% 2.23% 2.20% 2.37%
--------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Balanced Fund
----------------------------------------------------------
Class C
----------------------------------------------------------
Six months Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
4/30/00** 10/31/99* 10/31/98 10/31/97 10/31/96 10/31/95*
(unaudited)
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $10.63 $11.54 $12.62 $12.35 $12.02 $11.12
------------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) 0.04 0.17 0.18 0.25 0.32 0.31
Net realized and
unrealized gain/(loss)
on investments and
foreign currency 0.08 (0.09) 1.05 1.54 1.07 1.35
--------------------------------------------------------
Total from investment
operations 0.12 0.08 1.23 1.79 1.39 1.66
--------------------------------------------------------
Distributions
Dividends from net
investment income (0.22) (0.15) (0.24) (0.36) (0.31) (0.24)
Distributions from
realized capital gains (1.31) (0.84) (2.07) (1.16) (0.75) (0.52)
--------------------------------------------------------
Total distributions (1.53) (0.99) (2.31) (1.52) (1.06) (0.76)
------------------------------------------------------------------------------------
Net Asset Value, End of
Period $9.22 $10.63 $11.54 $12.62 $12.35 $12.02
------------------------------------------------------------------------------------
Total Return 1.77% + 0.58% 11.68% 16.21% 12.41% 16.25%
------------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------------
Net assets, end of
period (000's) $41,734 $53,669 $65,049 $68,261 $72,821 $80,626
------------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 2.14% # 2.04% 2.04% 1.99% 1.99% 1.99%
------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets 0.90% # 1.55% 1.47% 2.09% 2.67% 2.76%
------------------------------------------------------------------------------------
Portfolio turnover rate 167% + 198% 185% 211% 253% 226%
------------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 2.44% # 2.25% 2.18% 2.20% 2.20% 2.24%
------------------------------------------------------------------------------------
</TABLE>
* 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.
28
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Strategic Income Fund
---------------------------------------------------------
Class A
---------------------------------------------------------
Six months Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
4/30/00** 10/31/99* 10/31/98 10/31/97 10/31/96 10/31/95
(unaudited)
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $8.40 $8.99 $9.76 $9.80 $9.07 $8.90
-----------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) 0.39 0.72 0.67 0.70 0.80 0.78
Net realized and
unrealized gain/(loss)
on investments and
foreign currency (0.23) (0.53) (0.63) 0.28 0.72 0.18
--------------------------------------------------------
Total from investment
operations (0.16) 0.19 0.04 0.98 1.52 0.96
--------------------------------------------------------
Distributions
Dividends from net
investment income (0.39) (0.73) (0.67) (0.84) (0.79) (0.79)
Distributions from
realized capital gains - (0.05) (0.14) (0.18) - -
--------------------------------------------------------
Total distributions (0.39) (0.78) (0.81) (1.02) (0.79) (0.79)
-----------------------------------------------------------------------------------
Net Asset Value, End of
Period $8.17 $8.40 $8.99 $9.76 $9.80 $9.07
-----------------------------------------------------------------------------------
Total Return 1.92% + 2.10% 0.22% 10.57% 17.35% 11.43%
-----------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------
Net assets, end of
period (000's) $6,948 $8,997 $15,296 $15,924 $13,382 $10,041
-----------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 1.55% # 1.50% 1.50% 1.50% 1.50% 1.07%
-----------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets 9.26% # 8.21% 7.02% 7.25% 8.28% 9.08%
-----------------------------------------------------------------------------------
Portfolio turnover rate 41% + 119% 162% 193% 68% 180%
-----------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 1.85% # 1.67% 1.56% 1.61% 1.65% 1.69%
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
<CAPTION>
Strategic Income Fund
---------------------------------------------------------
Class B
---------------------------------------------------------
Six months Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
4/30/00* 10/31/99* 10/31/98 10/31/97 10/31/96 10/31/95
(unaudited)
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $8.41 $8.99 $9.76 $9.80 $9.07 $8.90
-----------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) 0.36 0.66 0.61 0.64 0.73 0.73
Net realized and
unrealized gain/(loss)
on investments and
foreign currency (0.23) (0.52) (0.63) 0.28 0.73 0.17
--------------------------------------------------------
Total from investment
operations (0.13) 0.14 (0.02) 0.92 1.46 0.90
--------------------------------------------------------
Distributions
Dividends from net
investment income (0.37) (0.67) (0.61) (0.78) (0.73) (0.73)
Distributions from
realized capital gains - (0.05) (0.14) (0.18) - -
--------------------------------------------------------
Total distributions (0.37) (0.72) (0.75) (0.96) (0.73) (0.73)
-----------------------------------------------------------------------------------
Net Asset Value, End of
Period $8.17 $8.41 $8.99 $9.76 $9.80 $9.07
-----------------------------------------------------------------------------------
Total Return 1.48% + 1.56% (0.43%) 9.86% 16.59% 10.72%
-----------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------
Net assets, end of
period (000's) $17,071 $21,340 $29,210 $34,590 $30,890 $20,672
-----------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 2.20% # 2.15% 2.15% 2.15% 2.15% 1.95%
-----------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets 8.55% # 7.58% 6.39% 6.60% 7.63% 8.10%
-----------------------------------------------------------------------------------
Portfolio turnover rate 41% + 119% 162% 193% 68% 180%
-----------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 2.50% # 2.32 2.21% 2.23% 2.27% 2.38%
-----------------------------------------------------------------------------------
</TABLE>
* 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.
29
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Strategic Income Fund
---------------------------------------------------------
Class C
---------------------------------------------------------
Six months
Ended Year Year Year Year Year
4/30/00** Ended Ended Ended Ended Ended
(unaudited) 10/31/99* 10/31/98 10/31/97 10/31/96 10/31/95
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $8.41 $8.99 $9.76 $9.80 $9.07 $8.90
-----------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) 0.36 0.66 0.61 0.64 0.73 0.73
Net realized and
unrealized gain/(loss)
on investments and
foreign currency (0.23) (0.52) (0.63) 0.28 0.73 0.17
--------------------------------------------------------
Total from investment
operations (0.13) 0.14 (0.02) 0.92 1.46 0.90
--------------------------------------------------------
Distributions
Dividends from net
investment income (0.37) (0.67) (0.61) (0.78) (0.73) (0.73)
Distributions from
realized capital gains - (0.05) (0.14) (0.18) - -
--------------------------------------------------------
Total distributions (0.37) (0.72) (0.75) (0.96) (0.73) (0.73)
-----------------------------------------------------------------------------------
Net Asset Value, End of
Period $8.17 $8.41 $8.99 $9.76 $9.80 $9.07
-----------------------------------------------------------------------------------
Total Return 1.48% + 1.56% (0.43%) 9.86% 16.59% 10.72%
-----------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------
Net assets, end of
period (000's) $15,862 $20,749 $33,537 $32,683 $22,783 $14,273
-----------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 2.20% # 2.15% 2.15% 2.15% 2.15% 1.95%
-----------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets 8.59% # 7.57% 6.37% 6.60% 7.63% 8.25%
-----------------------------------------------------------------------------------
Portfolio turnover rate 41% + 119% 162% 193% 68% 180%
-----------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 2.50% # 2.32% 2.21% 2.24% 2.28% 2.37%
-----------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Core Bond Fund (formerly Investment Quality Bond Fund)
----------------------------------------------------------
Class A
----------------------------------------------------------
Six months
Ended Year Year Year Year Year
4/30/00** Ended Ended Ended Ended Ended
(unaudited) 10/31/99* 10/31/98 10/31/97 10/31/96 10/31/95*
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $9.85 $10.63 $10.52 $10.34 $10.56 $9.74
------------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) 0.32 0.66 0.68 0.67 0.66 0.68
Net realized and
unrealized gain/(loss)
on investments and
foreign currency (0.24) (0.77) 0.10 0.18 (0.20) 0.82
--------------------------------------------------------
Total from investment
operations 0.08 (0.11) 0.78 0.85 0.46 1.50
--------------------------------------------------------
Distributions
Dividends from net
investment income (0.34) (0.67) (0.67) (0.67) (0.68) (0.68)
------------------------------------------------------------------------------------
Net Asset Value, End of
Period $9.59 $9.85 $10.63 $10.52 $10.34 $10.56
------------------------------------------------------------------------------------
Total Return 0.78% + (1.08%) 7.63% 8.57% 4.52% 15.91%
------------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------------
Net assets, end of
period (000's) $2,887 $3,507 $6,730 $7,110 $9,056 $10,345
------------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 1.30% # 1.25% 1.25% 1.25% 1.25% 1.25%
------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets 6.52% # 4.77% 6.45% 6.54% 6.37% 6.72%
------------------------------------------------------------------------------------
Portfolio turnover rate 18% + 43% 48% 65% 56% 132%
------------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 1.94% # 1.70% 1.54% 1.62% 1.55% 1.73%
------------------------------------------------------------------------------------
</TABLE>
* 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.
30
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Core Bond Fund (formerly Investment Quality Bond Fund)
---------------------------------------------------------
Class B
---------------------------------------------------------
Six months
Ended Year Year Year Year Year
4/30/00** Ended Ended Ended Ended Ended
(unaudited) 10/31/99* 10/31/98 10/31/97 10/31/96 10/31/95
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $9.85 $10.62 $10.52 $10.33 $10.55 $9.74
-----------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) 0.28 0.59 0.61 0.60 0.60 0.61
Net realized and
unrealized gain/(loss)
on investments and
foreign currency (0.25) (0.75) 0.10 0.20 (0.20) 0.82
-------------------------------------------------------
Total from investment
operations 0.05 (0.16) 0.71 0.80 0.40 1.43
-------------------------------------------------------
Distributions
Dividends from net
investment income (0.31) (0.61) (0.61) (0.61) (0.62) (0.62)
-----------------------------------------------------------------------------------
Net Asset Value, End of
Period $9.59 $9.85 $10.62 $10.52 $10.33 $10.55
-----------------------------------------------------------------------------------
Total Return 0.47% + (1.56%) 6.93% 8.05% 3.92% 15.12%
-----------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------
Net assets, end of
period (000's) $3,583 $4,295 $4,845 $4,613 $4,678 $3,472
-----------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 1.95% # 1.90% 1.90% 1.90% 1.90% 1.90%
-----------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets 5.85% # 5.71% 5.81% 5.89% 5.72% 5.95%
-----------------------------------------------------------------------------------
Portfolio turnover rate 18% + 43% 48% 65% 56% 132%
-----------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 2.60% # 2.39% 2.20% 2.33% 2.27% 2.69%
-----------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Core Bond Fund (formerly Investment Quality Bond Fund)
----------------------------------------------------------
Class C
----------------------------------------------------------
Six months
Ended Year Year Year Year Year
4/30/00** Ended Ended Ended Ended Ended
(unaudited) 10/31/99* 10/31/98 10/31/97 10/31/96 10/31/95
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $9.85 $10.62 $10.52 $10.33 $10.55 $9.74
------------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) 0.28 0.59 0.61 0.60 0.60 0.61
Net realized and
unrealized gain/(loss)
on investments and
foreign currency (0.23) (0.75) 0.10 0.20 (0.20) 0.82
--------------------------------------------------------
Total from investment
operations 0.05 (0.16) 0.71 0.80 0.40 1.43
--------------------------------------------------------
Distributions
Dividends from net
investment income (0.31) (0.61) (0.61) (0.61) (0.62) (0.62)
------------------------------------------------------------------------------------
Net Asset Value, End of
Period $9.59 $9.85 $10.62 $10.52 $10.33 $10.55
------------------------------------------------------------------------------------
Total Return 0.47% + (1.56%) 6.93% + 8.05% 3.92% 15.12%
------------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------------
Net assets, end of
period (000's) $3,285 $4,593 $5,532 $6,109 $7,543 $7,206
------------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 1.95% # 1.90% 1.90% 1.90% 1.90% 1.90%
------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets 5.86% # 5.70% 5.81% 5.89% 5.72% 6.00%
------------------------------------------------------------------------------------
Portfolio turnover rate 18% + 43% 48% 65% 56% 132%
------------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 2.59% # 2.38% 2.20% 2.29% 2.22% 2.50%
------------------------------------------------------------------------------------
</TABLE>
* 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.
31
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Municipal Bond Fund (formerly National Municipal Bond)
--------------------------------------------------------
Class A
--------------------------------------------------------
Six months
Ended Year Year Year Year Year
4/30/00 Ended Ended Ended Ended Ended
(unaudited) 10/31/99 10/31/98 10/31/97 10/31/96 10/31/95
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $9.48 $10.22 $10.09 $9.73 $9.62 $8.82
----------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) 0.23 0.45 0.47 0.48 0.48 0.51
Net realized and
unrealized gain/(loss)
on investments and
foreign currency (0.11) (0.74) 0.13 0.36 0.11 0.80
------------------------------------------------------
Total from investment
operations 0.12 (0.29) 0.60 0.84 0.59 1.31
------------------------------------------------------
Distributions
Dividends from net
investment income (0.19) (0.45) (0.47) (0.48) (0.48) (0.51)
----------------------------------------------------------------------------------
Net Asset Value, End of
Period $9.41 $9.48 $10.22 $10.09 $9.73 $9.62
----------------------------------------------------------------------------------
Total Return 1.74% + (2.95%) 6.04% 8.85% 6.31% 15.26%
----------------------------------------------------------------------------------
Ratios/Supplemental Data
----------------------------------------------------------------------------------
Net assets, end of
period (000's) $3,721 $4,435 $5,820 $6,347 $7,710 $7,618
----------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 1.00% # 1.00% 1.00% 0.99% 0.99% 0.80%
----------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets 4.96% # 4.52% 4.60% 4.87% 4.99% 5.55%
----------------------------------------------------------------------------------
Portfolio turnover rate 18% + 46% 43% 29% 49% 44%
----------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 1.73% # 1.41% 1.23% 1.23% 1.25% 1.34%
----------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Municipal Bond Fund (formerly National Municipal Bond)
--------------------------------------------------------
Class B
--------------------------------------------------------
Six months
Ended Year Year Year Year Year
4/30/00 Ended Ended Ended Ended Ended
(unaudited) 10/31/99 10/31/98 10/31/97 10/31/96 10/31/95
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $9.48 $10.22 $10.09 $9.73 $9.62 $8.81
----------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) 0.19 0.37 0.38 0.40 0.40 0.43
Net realized and
unrealized gain/(loss)
on investments and
foreign currency (0.10) (0.74) 0.13 0.36 0.11 0.81
------------------------------------------------------
Total from investment
operations 0.09 (0.37) 0.51 0.76 0.51 1.24
------------------------------------------------------
Distributions
Dividends from net
investment income (0.16) (0.37) (0.38) (0.40) (0.40) (0.43)
----------------------------------------------------------------------------------
Net Asset Value, End of
Period $9.41 $9.48 $10.22 $10.09 $9.73 $9.62
----------------------------------------------------------------------------------
Total Return 1.33% + (3.77%) 5.15% 7.94% 5.41% 14.42%
----------------------------------------------------------------------------------
Ratios/Supplemental Data
----------------------------------------------------------------------------------
Net assets, end of
period (000's) $3,378 $4,197 $5,273 $6,532 $6,130 $5,876
----------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 1.85% # 1.85% 1.85% 1.84% 1.84% 1.70%
----------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets 4.11% # 3.67% 3.75% 4.02% 4.14% 4.59%
----------------------------------------------------------------------------------
Portfolio turnover rate 18% + 46% 43% 29% 49% 44%
----------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 2.59% # 2.26% 2.08% 2.15% 2.11% 2.41%
----------------------------------------------------------------------------------
</TABLE>
+ Non-annualized
# Annualized
The accompanying notes are an integral part of the financial statements.
32
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Municipal Bond Fund (formerly National Municipal Bond)
--------------------------------------------------------
Class C
--------------------------------------------------------
Six months
Ended Year Year Year Year Year
4/30/00 Ended Ended Ended Ended Ended
(unaudited) 10/31/99 10/31/98 10/31/97 10/31/96 10/31/95
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $9.48 $10.22 $10.09 $9.73 $9.62 $8.81
----------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) 0.19 0.37 0.38 0.40 0.40 0.43
Net realized and
unrealized gain/(loss)
on investments and
foreign currency (0.10) (0.74) 0.13 0.36 0.11 0.81
------------------------------------------------------
Total from investment
operations 0.09 (0.37) 0.51 0.76 0.51 1.24
------------------------------------------------------
Distributions
Dividends from net
investment income (0.16) (0.37) (0.38) (0.40) (0.40) (0.43)
----------------------------------------------------------------------------------
Net Asset Value, End of
Period $9.41 $9.48 $10.22 $10.09 $9.73 $9.62
----------------------------------------------------------------------------------
Total Return 1.32% + (3.77%) 5.15% 7.94% 5.41% 14.42%
----------------------------------------------------------------------------------
Ratios/Supplemental Data
----------------------------------------------------------------------------------
Net assets, end of
period (000's) $2,825 $3,931 $5,147 $5,305 $5,693 $6,834
----------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 1.85% # 1.85% 1.85% 1.84% 1.84% 1.70%
----------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average
net assets 4.11% # 3.67% 3.75% 4.02% 4.14% 4.53%
----------------------------------------------------------------------------------
Portfolio turnover rate 18% + 46% 43% 29% 49% 44%
----------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 2.58% # 2.26% 2.08% 2.15% 2.25% 2.63%
----------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. Government Securities Fund
--------------------------------------------------------
Class A
--------------------------------------------------------
Six months
Ended Year Year Year Year Year
4/30/00 Ended Ended Ended Ended Ended
(unaudited) 10/31/99 10/31/98 10/31/97 10/31/96 10/31/95
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $9.55 $10.08 $9.94 $9.80 $9.98 $9.45
----------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) 0.53 0.53 0.56 0.59 0.56 0.63
Net realized and
unrealized gain/(loss)
on investments and
foreign currency (0.47) (0.48) 0.16 0.13 (0.12) 0.57
-------------------------------------------------------
Total from investment
operations 0.06 0.05 0.72 0.72 0.44 1.20
-------------------------------------------------------
Distributions
Dividends from net
investment income (0.29) (0.58) (0.58) (0.58) (0.56) (0.67)
Distributions in excess
of net investment
income - - - - (0.06) -
-------------------------------------------------------
Total distributions (0.29) (0.58) (0.58) (0.58) (0.62) (0.67)
----------------------------------------------------------------------------------
Net Asset Value, End of
Period $9.32 $9.55 $10.08 $9.94 $9.80 $9.98
----------------------------------------------------------------------------------
Total Return 0.63% + 0.48% 7.41% 7.56% 4.64% 13.15%
----------------------------------------------------------------------------------
Ratios/Supplemental Data
----------------------------------------------------------------------------------
Net assets, end of
period (000's) $35,495 $35,379 $49,624 $53,235 $72,774 $81,179
----------------------------------------------------------------------------------
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 (loss) to
average net assets 6.18% # 5.64% 5.65% 6.20% 5.71% 6.54%
----------------------------------------------------------------------------------
Portfolio turnover rate 69% + 63% 116% 364% 477% 469%
----------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 1.62% # 1.46% 1.40% 1.42% 1.41% 1.45%
----------------------------------------------------------------------------------
</TABLE>
+ Non-annualized
# Annualized
The accompanying notes are an integral part of the financial statements.
33
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. Government Securities Fund
----------------------------------------------------------
Class B
----------------------------------------------------------
Six months
Ended Year Year Year Year Year
4/30/00 Ended Ended Ended Ended Ended
(unaudited) 10/31/99 10/31/98 10/31/97 10/31/96* 10/31/95
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $9.56 $10.07 $9.94 $9.80 $9.98 $9.45
------------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) 0.48 0.47 0.49 0.54 0.50 0.56
Net realized and
unrealized gain/(loss)
on investments and
foreign currency (0.47) (0.47) 0.15 0.11 (0.12) 0.58
---------------------------------------------------------
Total from investment
operations 0.01 0.00 0.64 0.65 0.38 1.14
---------------------------------------------------------
Distributions
Dividends from net
investment income (0.25) (0.51) (0.51) (0.51) (0.50) (0.61)
Distributions in excess
of net investment
income - - - - (0.06) -
---------------------------------------------------------
Total distributions (0.25) (0.51) (0.51) (0.51) (0.56) (0.61)
------------------------------------------------------------------------------------
Net Asset Value, End of
Period $9.32 $9.56 $10.07 $9.94 $9.80 $9.98
------------------------------------------------------------------------------------
Total Return 0.17% + 0.01% 6.60% 6.84% 3.97% 12.45%
------------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------------
Net assets, end of
period (000's) $12,0725 $12,033 $17,850 $16,659 $19,444 $13,993
------------------------------------------------------------------------------------
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 5.53% # 5.00% 4.99% 5.55% 5.06% 5.53%
------------------------------------------------------------------------------------
Portfolio turnover rate 69% + 63% 116% 364% 477% 469%
------------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 2.27% # 2.11% 2.05% 2.09% 2.06% 2.28%
------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. Government Securities Fund
---------------------------------------------------------
Class C
---------------------------------------------------------
Six months
Ended Year Year Year Year Year
4/30/00 Ended Ended Ended Ended Ended
(unaudited) 10/31/99 10/31/98 10/31/97 10/31/96* 10/31/95
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $9.56 $10.07 $9.94 $9.80 $9.98 $9.45
-----------------------------------------------------------------------------------
Investment Operations:
Net investment
income/(loss) 0.48 0.47 0.49 0.54 0.50 0.56
Net realized and
unrealized gain/(loss)
on investments and
foreign currency (0.47) (0.47) 0.15 0.11 (0.12) 0.58
--------------------------------------------------------
Total from investment
operations 0.01 0.00 0.64 0.65 0.38 1.14
--------------------------------------------------------
Distributions
Dividends from net
investment income (0.25) (0.51) (0.51) (0.51) (0.50) (0.61)
Distributions in excess
of net investment
income - - - - (0.06) -
--------------------------------------------------------
Total distributions (0.25) (0.51) (0.51) (0.51) (0.56) (0.61)
-----------------------------------------------------------------------------------
Net Asset Value, End of
Period $9.32 $9.56 $10.07 $9.94 $9.80 $9.98
-----------------------------------------------------------------------------------
Total Return 0.17% + 0.01% 6.60% 6.84% 3.97% 12.45%
-----------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------
Net assets, end of
period (000's) $10,817 $10,776 $12,708 $14,716 $20,009 $20,186
-----------------------------------------------------------------------------------
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 5.53% # 5.00% 5.00% 5.55% 5.06% 5.74%
-----------------------------------------------------------------------------------
Portfolio turnover rate 69% + 63% 116% 364% 477% 469%
-----------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 2.27% # 2.11% 2.05% 2.09% 2.06% 2.15%
-----------------------------------------------------------------------------------
</TABLE>
* 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.
34
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Market Fund
--------------------------------------------------------
Class A
--------------------------------------------------------
Six months
Ended Year Year Year Year Year
4/30/00 Ended Ended Ended Ended Ended
(unaudited) 10/31/99 10/31/98 10/31/97 10/31/96 10/31/95
----------------------------------------------------------------------------------
<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/(loss) 0.02 0.04 0.05 0.05 0.05 0.05
Distributions
Dividends from net
investment income (0.02) (0.04) (0.05) (0.05) (0.05) (0.05)
----------------------------------------------------------------------------------
Net Asset Value, End of
Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----------------------------------------------------------------------------------
Total Return 2.49% + 4.56% 5.18% 5.13% 5.16% 5.60%
----------------------------------------------------------------------------------
Ratios/Supplemental Data
----------------------------------------------------------------------------------
Net assets, end of
period (000's) $10,370 $6,030 $10,295 $11,057 $8,087 $11,379
----------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 0.66% # 0.50% 0.50% 0.50% 0.50% 0.50%
----------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets 5.07% # 4.46% 5.06% 5.02% 5.02% 5.45%
----------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 1.06% # 0.95% 0.92% 0.96% 0.95% 0.96%
----------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Market Fund
--------------------------------------------------------
Class B
--------------------------------------------------------
Six months
Ended Year Year Year Year Year
4/30/00 Ended Ended Ended Ended Ended
(unaudited) 10/31/99 10/31/98 10/31/97 10/31/96 10/31/95
----------------------------------------------------------------------------------
<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/(loss) 0.02 0.04 0.05 0.05 0.05 0.05
Distributions
Dividends from net
investment income (0.02) (0.04) (0.05) (0.05) (0.05) (0.05)
----------------------------------------------------------------------------------
Net Asset Value, End of
Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----------------------------------------------------------------------------------
Total Return 2.50% + 4.56% 5.18% 5.13% 5.16% 5.60%
----------------------------------------------------------------------------------
Ratios/Supplemental Data
----------------------------------------------------------------------------------
Net assets, end of
period (000's) $2,843 $4,551 $5,919 $3,332 $3,062 $1,564
----------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 0.65% # 0.50% 0.50% 0.50% 0.50% 0.50%
----------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets 4.94% # 4.47% 5.02% 5.02% 5.02% 5.52%
----------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 0.98% # 0.99% 0.98% 1.05% 1.18% 1.41%
----------------------------------------------------------------------------------
</TABLE>
+ Non-annualized
# Annualized
The accompanying notes are an integral part of the financial statements.
35
<PAGE>
NORTH AMERICAN FUNDS
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Market Fund
--------------------------------------------------------
Class C
--------------------------------------------------------
Six months
Ended Year Year Year Year Year
4/30/00 Ended Ended Ended Ended Ended
(unaudited) 10/31/99 10/31/98 10/31/97 10/31/96 10/31/95
----------------------------------------------------------------------------------
<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/(loss) 0.02 0.04 0.05 0.05 0.05 0.05
Distributions
Dividends from net
investment income (0.02) (0.04) (0.05) (0.05) (0.05) (0.05)
----------------------------------------------------------------------------------
Net Asset Value, End of
Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----------------------------------------------------------------------------------
Total Return 2.49 + 4.56% 5.18% 5.13% 5.16% 5.60%
----------------------------------------------------------------------------------
Ratios/Supplemental Data
----------------------------------------------------------------------------------
Net assets, end of
period (000's) $6,722 $8,644 $8,237 $7,539 $9,840 $9,394
----------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 0.65% # 0.50% 0.50% 0.50% 0.50% 0.50%
----------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets 4.95% # 4.48% 5.05% 5.01% 5.02% 5.46%
----------------------------------------------------------------------------------
Expense ratio before
expense reimbursement
by adviser 1.01% # 1.01% 0.94% 1.00% 0.98% 0.95%
----------------------------------------------------------------------------------
</TABLE>
+ Non-annualized
# Annualized
The accompanying notes are an integral part of the financial statements.
36
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
International Small Cap Fund
<TABLE>
-----------------------------------------------------
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
COMMON STOCKS - 84.05%
Airlines - 0.39%
China Southern Airline* 672,000 $123,371
------------
Apparel - 0.57%
Giordano International 112,000 183,331
------------
Automobiles & Related - 1.41%
Brilliance China Automotive 4,385 71,256
Futaba Industrial* 14,000 148,665
Haldex AB 4,350 48,274
Jac* 600 43,383
Lex Service 22,075 139,713
------------
451,291
Basic Industry - 1.13%
BWT AG* 250 73,410
Carbone Lorraine* 2,875 125,456
Tsubaki Nakashima* 13,000 162,718
------------
361,584
Biotechnology - 1.63%
Oxford Glycosciences* 5,616 142,568
Perbio Science 23,800 164,577
Stressgen Biotechnologies Co.* 5,550 20,050
Trinity Biotech Plc* 5,475 21,900
Xenova Group* 80,600 170,667
------------
519,762
Building Materials - 1.25%
Buzzi Unichem Spa* 11,250 95,115
Caltagirone Spa* 25,950 85,872
Natsteel, Ltd.* 41,000 100,428
Nichiei Co.* 47,000 119,224
------------
400,639
Business Services - 6.37%
A Novo 795 175,191
Articon Information Systems AG* 719 54,906
C. Rel AS* 38,825 56,340
Connova Group AB 6,575 50,599
Devoteam SA* 225 31,091
Deutscher Industrie Service* 950 115,728
Eyretel* 111,625 257,216
GFK AG, 144A* 2,625 105,120
HiQ International AB* 675 66,627
Information Highway Center 5,950 61,053
Kipling Holding AB 3,975 76,698
Mediagerance* 625 52,216
Penauille Polyservices* 300 181,229
Pinkroccade NV 5,350 331,703
Prosegur Seguridad 6,300 74,341
RTS Networks Group* 2,525 4,285
Sifo Group AB* 8,645 110,883
Sumisho Lease* 8,000 146,646
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Business Services - cont'd.
Transacsys* 17,075 $13,558
Unique International NV 3,150 72,308
------------
2,037,738
Chemicals - 1.00%
Bejing Yanhua* 1,070,000 126,380
Oxford Asymmetry* 1,575 10,250
Shanghai Petrochemical Corp.* 1,318,000 177,669
Shanghai Petrochemical Corp.* 400 5,750
------------
320,049
Computer Equipment - 3.18%
IBA Technologies, Ltd. 144A* 89,550 66,417
Keycorp, Ltd.* 2,575 13,158
Koa Corporation 4,000 116,280
Kontron* 1,100 57,001
Logitech International* 500 329,941
Lynx Group Plc* 23,575 67,904
Micronics Japan Co.* 1,100 22,201
Muehlbauer Holdings* 925 59,705
Mycal Card, Inc. 2,600 96,524
Plasmon Plc 23,800 87,821
Yuxing Infotech Holding* 120,000 100,139
------------
1,017,091
Computer Networking - 0.26%
Automated Systems Holdings* 122,000 81,446
------------
Computer Software & Services - 7.62%
Academedia AB* 3,400 73,946
Advantage Group, Ltd.* 61,925 109,758
Aisoftw@re* 250 39,319
AIT Group 10,725 153,624
Auxinet Plc* 17,975 4,618
Cedar Group* 6,575 73,604
Certicom Corp.* 1,100 56,081
Easier* 26,875 31,382
Ecosoft Group Plc* 1,900 25,884
Founder Holdings, Ltd.* 184,000 106,301
ILOG SA* 1,900 68,400
Info Realite* 2,300 76,319
ITNet* 11,775 137,957
Japan Business Comp.* 1,000 46,660
Meta4 NV* 1,150 13,173
Netbenefit* 4,500 49,044
Norcom Information* 850 66,378
Radvision, Ltd.* 5,350 204,638
RM 9,650 105,548
Royalblue Group 2,775 56,167
Securenet Limited* 8,925 26,582
Ser Systeme AG* 4,325 181,259
Servicepower Tech.* 19,925 36,296
Sherwood International 7,050 102,081
Sigma AB* 3,625 104,311
Software Innovation* 2,300 43,646
Systar* 1,600 33,891
</TABLE>
The accompanying notes are an integral part of the financial statements.
37
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Computer Software & Services - cont'd.
Think Tools* 175 $72,555
Tiscon AG* 1,425 116,592
Unit 4 NV* 2,575 129,922
Visma ASA 2,550 15,371
XRT-Cerg 650 75,637
------------
2,436,944
Construction - 0.39%
Hunet* 24,000 124,427
------------
Consumer Products & Services - 1.48%
Aderans Company 2,800 122,094
Homac 2,900 71,953
Zapf Creation AG 3,425 213,286
ITE Group 49,600 66,799
------------
474,132
Distribution - 0.82%
China Shipping* 896,000 106,979
Manutan International 1,850 153,552
------------
260,531
Diversified - 1.20%
DCC Plc* 24,500 241,662
Seiyu 47,000 140,980
------------
382,642
Electronics - 6.19%
AGC AG 325 77,410
Adcon Telemetry AG* 9,075 207,077
Alba 2,500 23,354
Allgon AB* 5,325 117,594
Eimo 6,700 60,910
Enplas Corporation* 3,000 151,646
JOT Automation Group 10,750 77,694
Kardex AG* 175 56,319
Kudelski SA* 13 133,728
Nanjing Panda Electronics* 168,000 69,558
SEZ Holdings AG* 63 58,267
Sustainable Technologies* 109,950 12,200
SZ Testsysteme 7,600 191,384
Techem AG 144A* 9,600 259,203
Technology Nexus AB 2,100 81,508
Toko, Inc.* 29,000 241,633
Yamaichi Electronics* 2,100 75,823
Yokowo Company* 3,000 84,433
------------
1,979,741
Energy - 0.16%
Vesta Wind Systems, 144A 150 50,162
------------
Environmental Services - 0.10%
Waste Recycling 4,500 32,089
------------
Financial Services - 5.52%
Aberdeen Asset Management* 8,050 58,782
Bank Sarasin et Cie* 25 67,264
Bertrand Faure 3,375 127,177
BMP Venture Capital AG* 825 17,850
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Financial Services - cont'd.
Dah Sing Financial 19,600 $76,747
First Capital Corp.* 126,000 126,258
Great Eagle Holdings* 61,000 104,157
Ichiyoshi Securities Co. 28,000 266,482
Intermediate Capital 14,875 136,295
Internet Indirect* 60,825 17,993
IQE Plc* 2,325 139,500
JCG Holdings, Ltd. 32,000 16,638
M2M Corp., Ltd.* 14,000 2,453
Man E D & F Group 18,875 145,909
Menire 8,000 54,546
Newmedia Spark Plc* 47,300 46,396
Real Time Systemize 144A 8,025 159,772
Tecis Holding AG* 700 100,546
Wing Hang Bank, Ltd. 41,500 101,763
------------
1,766,528
Food & Beverages - 1.47%
Elior 144A* 14,100 153,435
Fraser and Neave 37,000 119,250
Iceland Group 3,625 16,001
Katokichi Co.* 4,000 97,394
Matsuya Foods* 1,000 29,255
Ng Fung Hong, Ltd.* 110,000 55,076
------------
470,411
Healthcare Services - 1.33%
Colin Corp. 1,500 181,919
Nestor Healthcare Group 20,200 135,237
Quality Healthcare* 140,000 57,516
Unilabs Holdings 50 50,448
------------
425,120
Insurance - 0.91%
April Group SA 600 105,819
COR AG Insurance* 11,575 184,150
------------
289,969
Leisure & Entertainment - 2.07%
Enlight Interactive AB* 1,150 18,342
Highlight Communications* 5,475 219,002
Koei Company* 2,800 100,579
NH Hotels SA* 7,025 78,872
Scandic Hotels AB 7,525 79,732
Superscape Plc* 32,750 165,718
------------
662,245
Machinery - 5.83%
Amada Co.* 24,000 218,636
Furukawa Co.* 30,000 56,937
Idec Izumi Corp.* 15,000 238,856
KCI Konecranes Int'l. Plc 1,750 58,069
LG Cable & Machinery, Ltd.* 6,680 106,543
Manitou* 1,800 144,001
Mikron Holding AG* 50 36,096
Neopost* 2,500 66,137
Nippon Thompson Co.* 17,000 176,429
</TABLE>
The accompanying notes are an integral part of the financial statements.
38
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Machinery - cont'd.
Pinguely Haulotte* 2,050 $322,412
Saurer AG* 450 221,797
Swisslog Holding* 500 219,767
------------
1,865,680
Manufacturing - 2.32%
Abric Berhad* 34,000 120,789
Chloride Group 72,350 144,186
Omni Industries* 118,000 230,952
Reiter Holding AG* 150 88,719
Zodiac 900 158,647
------------
743,293
Medical Supplies & Equipment - 4.06%
Axis Shield* 7,900 81,056
Biacore International 2,350 85,183
Card Guard* 4,625 195,776
Jomed NV* 2,400 72,367
Moritex Corp.* 2,000 149,979
MWG Biotech AG* 575 101,933
Nobel Biocare* 8,400 224,849
Tecan AG* 450 387,753
------------
1,298,896
Metals & Mining - 1.04%
Angang New Steel* 1,064,000 87,424
Antofagasta Holdings* 9,775 60,116
Arkivator AB 1,650 78,396
Jiangxi Copper Company, Ltd.* 119,000 9,930
Yanzhou Coal Mining* 490,000 98,136
------------
334,002
Oil Services - 0.88%
Precision Drilling Corp.* 7,850 249,669
Smedvig ASA 2,575 32,337
------------
282,006
Packaging - 0.17%
Ifco Systems NV* 2,200 53,401
------------
Pharmaceuticals - 1.29%
Cerep* 3,725 216,729
Hisamitsu Pharmaceuticals 3,000 73,879
Karo Bio AB 2,575 90,467
Neurosearch AS* 475 30,610
------------
411,685
Property - 1.41%
Joint Corporation* 4,500 156,228
Keppel Land, Ltd.* 62,000 74,117
Pierre & Vacances 875 45,182
Wing Tai Holdings, Ltd. 213,000 174,744
------------
450,271
Publishing & Broadcasting - 3.70%
Alma Media Corp. 2,875 122,842
Chrysalis Group* 28,500 95,402
HIT Entertainment 144A* 39,150 262,105
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Publishing & Broadcasting - cont'd.
IMS Group 1,800 $5,717
Incepta Group* 111,450 189,139
Intertainment AG* 1,900 180,847
Isis Communications* 198,050 99,469
Jean-Claude Darmon* 275 30,825
Johnston Press* 11,675 59,622
Netnation Communications, Inc.* 275 1,994
Sportsworld Media* 11,023 86,155
Wegener NV* 3,175 48,924
------------
1,183,041
Retail Trade - 3.58%
Beter Bed Holding NV* 2,100 70,446
Cortefiel SA 8,575 180,856
Daimaru, Inc. 54,000 178,475
Esprit Holdings 18,000 19,180
Etam Development* 3,300 74,401
Grafton Group* 2,000 41,364
Jelmoli Holding AGB* 50 64,655
Lindex AB 2,425 58,962
Shimachu Co. 15,900 270,851
Ted Baker 9,900 77,686
Xebio Co. 5,800 108,466
------------
1,145,342
Semiconductors & Equipment - 1.60%
Advanced Systems Auto* 74,000 65,045
BE Semiconductor* 3,975 80,585
CE Consumer Electronics* 125 21,023
Custom Silicon* 4,000 74,910
DSP Group, Inc.* 1,325 94,241
Imagination Technologies Group* 10,125 44,928
Robotic Technology Systems* 15,700 130,776
------------
511,508
Telecommunication Equipment - 5.31%
Algo Vision* 9,925 119,100
Audiocodes, Ltd.* 1,200 90,000
Breeze.com, Ltd.* 9,200 253,000
BVRP Software 909 87,595
Comroad AG* 275 37,375
Ericsson Spa* 1,625 88,342
European Telecom 15,750 109,613
Infocast AB* 1,975 28,636
ITG Group Plc 144A* 13,844 157,571
Mobile Solutions, Inc. 1,125 39,375
On Track Innovation* 6,750 135,001
Pandatel AG 1,225 159,252
Switchcore 812 58,414
Teleste Corp. 12,725 334,902
------------
1,698,176
Telecommunication Services - 4.32%
AAPT, Ltd. 19,600 78,408
City Telecom 248,000 86,761
Comptel OYJ 144A 11,025 249,167
</TABLE>
The accompanying notes are an integral part of the financial statements.
39
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Telecommunication Services - cont'd.
Cybertron Telekon AG 1,450 $244,130
Easynet Group* 342 5,043
Future Integrated Telephony* 13,077 99,765
Glocalnet* 1,750 56,603
NHC Communications, Inc.* 825 4,429
Telelogic AB 42,175 319,864
Telemetrix 46,625 236,653
------------
1,380,823
Transportation - 1.05%
De Sammenslut Vogn 5,100 133,826
Hitachi Transport 3,000 13,748
Neptune Orient Lines* 177,000 158,693
Shenzen Expressway 280,000 31,274
------------
337,541
Utilities - 1.04%
Huaneng Power International* 764,000 173,612
Independent Energy Holdings Plc* 4,075 158,925
------------
332,537
TOTAL COMMON STOCKS (Cost $29,977,142) $ 26,879,445
------------
WARRANTS - 0.48%
Burntsand, Inc. (Expiration date 03/07/01)* 11,020 $52,834
NHC Communications, Inc. Special Warrants 5,825 31,270
OCI Communications, Inc. (Expiration date
03/28/01)* 6,518 69,322
------------
TOTAL WARRANTS (Cost $201,566) $153,426
------------
PREFERRED STOCKS - 0.67%
Belgo Mineire* 50,000 $3,932
Boss (Hugo) AG* 1,100 173,002
Celular CRT* 100,000 37,663
------------
TOTAL PREFERRED STOCKS (Cost $222,178) $214,597
------------
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
SHORT TERM INVESTMENTS - 0.94%
SSGA Money Market Fund 301,274 $301,274
------------
301,274
------------
REPURCHASE AGREEMENT - 13.86%
Repurchase Agreement with State Street Bank &
Trust Co. dated 04/28/00 at 4.75%, to be
repurchased at $4,432,725 on 05/01/00,
collateralized by $4,650,000 U.S. Treasury Notes,
5.625% due 05/15/08 (valued at $4,644,453,
including interest) (Cost $4,431,000) 4,431,000 4,431,000
------------
TOTAL INVESTMENTS (International Small Cap Fund) (Cost
$35,133,160) $31,979,742
------------
</TABLE>
<TABLE>
--------------------------------------------------------
International Equity Fund
--------------------------------------------------------
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
COMMON STOCKS - 88.99%
Aerospace & Military Technology - 0.30%
British Aerospace Plc 5,826 $35,830
Singapore Technologies Engineering 20,000 28,128
Thomson CSF 451 16,031
------------
79,989
Appliances & Household Durables - 2.54%
Electrolux AB 1,300 21,966
Matsushita Electric Industrial 7,000 185,345
Philips Electronics 3,864 172,371
Sanyo Electric Company Ltd. 9,000 60,075
Sharp Corporation 4,000 77,212
Sony Corporation 1,300 149,359
------------
666,328
Automobiles - 2.51%
Cycle & Carriage Ltd. 2,000 5,919
Daimlerchrysler AG 1,550 90,394
Fiat SpA 693 15,884
Honda Motor Company 1,000 44,716
Hyundai Motor Co. 410 3,861
Nissan Motors Company 7,000 31,820
Peugeot SA 123 25,450
Toyota Motor Corp. 8,000 397,723
Volkswagen AG 550 20,750
Volvo AB 200 4,673
Volvo AB 700 16,981
------------
658,171
Banking - 12.08%
77 Bank Ltd. 1,000 7,184
Abbey National Plc. 2,518 28,737
Abn Amro Holdings NV 4,283 88,192
Asahi Bank Ltd. 11,000 52,956
Banca Commerciale Italiana 747 3,531
Banca Intesa SpA 10,944 40,294
Banca Popolare di Milano 870 5,188
Banco Bilbao Vizcaya SA 14,420 196,638
Banco Bradesco 527,000 2,977
Banco Comercial Portugues SA 6,680 31,336
Banco Espirito Santo 690 15,996
Banco di Roma 10,434 11,032
Banco Santander Central Hispano 18,056 188,277
Bank Austria AG 861 38,197
Bank of East Asia Ltd. 1,838 3,976
Bank of Tokyo-Mitsubishi Ltd 18,000 232,301
Bank of Yokohama Ltd. 1,000 3,833
Banque Nationale de Paris 904 73,060
Barclays Plc 1,903 48,680
Bayerische Hypo-Und Vereinsbank 1,550 94,410
BPI-SGPS SA 4,425 14,402
Chiba Bank Ltd. 600 2,394
Credit Suisse Holding 780 140,889
</TABLE>
The accompanying notes are an integral part of the financial statements.
40
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Banking - cont'd.
Daiwa Bank Ltd. 8,000 $21,627
DBS Group Holdings Ltd. 7,815 107,619
Deutsche Bank AG 1,950 131,006
Dresdner Bank AG 1,400 57,668
Foereningssparbanken AB 2,200 32,389
Fuji Bank Ltd. 13,000 108,318
Bank of Fukuoka Ltd. 1,000 6,601
Halifax Group Plc 3,935 36,882
Hang Seng Bank Ltd. 2,900 26,806
HSBC Holdings Plc 13,514 149,389
Industrial Bank of Japan 11,000 90,636
Joyo Bank Ltd. 3,400 12,150
Kookmin Bank 440 4,758
Lloyds TSB Group Plc 9,981 97,435
Mediobanca SpA 1,377 11,417
Mitsubishi Trust & Banking Corp. 5,000 41,985
National Australia Bank Ltd. 3,276 44,883
Nordic Baltic Holdings 3,136 19,843
Oversea-Chinese Banking Corp. Ltd. 8,400 57,592
Sakura Bank Ltd. 18,000 126,316
San Paolo IMI SpA 3,094 43,316
Shinhan Bank Co. Ltd. 970 9,309
Shizuoka Bank Ltd. 4,000 37,032
Skandinaviska Enskilda Banken 2,500 27,325
Societe Generale 281 58,193
Sumitomo Bank 11,000 137,583
Suncorp Metway Ltd. 766 3,699
Svenska Handelsbanken 2,700 35,685
Tokai Bank Ltd 9,000 46,827
UBS AG 600 146,995
Unicredito Italiano 10,457 42,399
United Overseas Bank Ltd. 6,336 44,183
Westpac Banking Corp. 4,475 28,564
------------
3,170,910
Beverages & Tobacco - 1.99%
Asahi Breweries Ltd. 2,000 20,368
Altadis SA 1,265 14,843
Austria Tabak SA 169 5,961
Bass Plc 1,456 17,059
British American Tobacco PlC 3,209 19,985
Coca-Cola Amatil Ltd. 1,548 3,701
Diageo Plc 10,990 88,634
Fosters Brewing Group Ltd. 4,277 10,805
Fraser & Neave Ltd. 2,000 6,446
Hartwall 76 1,114
Heineken Holdings NV 1,368 75,863
Japan Tobacco, Inc. 4 29,440
Kirin Brewery Company Ltd. 8,000 104,208
Moet Hennessy Louis Vuitton 260 109,107
Oesterreichische Brau-Beteilign 70 2,717
Pernod Ricard 205 9,272
Unicer Uniao Cervejjeira SA 94 2,553
------------
522,076
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Broadcasting & Publishing - 2.14%
British Sky Broadcasting Group 2,871 $70,403
Canal Plus SA 356 68,612
Elsevier NV 1,752 17,042
EMI Group 1,484 14,395
Granada Group Plc 2,737 26,847
Mediaset SpA 2,891 46,914
News Corp Ltd. 4,539 57,644
Pearson Plc 1,248 42,223
Reed International Plc 2,207 15,360
Reuters Group 2,210 39,604
Singapore Press Holdings 2,000 39,144
South China Morning Post 2,000 2,131
Television Broadcasts Ltd. 1,000 6,836
Tokyo Broadcasting System, Inc. 1,000 43,512
Toppan Printing Co. Ltd. 3,000 31,385
WPP Group Plc 1,162 18,725
Wolters Kluwer NV 852 20,107
------------
560,884
Building Materials & Components - 0.14%
Buderus AG 200 3,453
JM Bygg AB 700 12,492
Lafarge SA 105 8,696
Weinerberger Baustoffindustrie 528 11,280
------------
35,921
Business & Public Services - 3.75%
Adecco SA 60 49,230
Anglian Water Plc 213 1,940
Autopistas Concesionaria Espanol 1,338 11,799
BAA Plc 2,161 14,030
Benesse Corporation Ltd. 400 35,755
Brambles Industries Ltd. 529 14,891
Cap Gemini SA 232 45,557
Capita Group PlC 311 7,989
Centrais Electricas Brasileiros 358,000 5,294
Dai Nippon Printing Co. Ltd. 3,000 50,910
Electrabel SA 43 10,394
Enel Societa Per Azioni 23,615 100,043
Flughafen Wein AG 163 5,225
Hays PlC 2,688 18,582
IVG Holding AG 1,340 17,445
Korea Electric Power Corp. Ltd. 680 19,914
Logica Plc 601 18,200
Mayne Nickless Ltd. 894 1,801
Railtrack Group Plc 920 11,817
Rentokil Initial Plc 4,998 13,715
SAP AG 200 93,819
Scottish Power Plc 1,431 11,434
Securitas AB 1,600 41,401
SEMA Group Plc 699 11,286
Soc. Gen. de Aguas de Barcelona 831 12,087
Sodexho Alliance SA 90 13,484
Softbank Corporation 400 98,505
Suez Lyonnaise des Eaux 430 67,432
</TABLE>
The accompanying notes are an integral part of the financial statements.
41
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Business & Public Services - cont'd.
Thames Water Plc 1,069 $13,432
United Utilities Plc 1,171 11,322
Vedior NV 213 2,256
Vivendi SA 1,544 152,717
------------
983,706
Chemicals - 2.16%
Akzo Nobel NV 417 17,071
Asahi Chemical Industry Co. Ltd. 5,000 28,792
BASF AG 900 39,347
Bayer AG 900 37,498
BOC Group Plc 1,580 26,002
Cin Corporacao Industrial Norte 170 954
Imperial Chemical Industries Plc 563 4,821
L'Air Liquide 199 25,906
Lenzing AG 6 305
LG Chemicals 370 8,502
Mitsubishi Chemical Corp. 5,000 20,044
Novartis AG 215 300,331
Orica Ltd. 278 1,099
Sumitomo Chemical Co. Ltd. 7,000 34,866
Teijin Ltd. 1,000 4,472
Toray Industries, Inc. 4,000 14,517
Wesfarmers Ltd. 450 3,132
------------
567,659
Construction & Housing - 0.80%
Acs Actividades de Construccion 310 8,590
Bau Holdings AG 36 1,466
Bilfinger & Berger Bauaktienge 250 3,511
Bouygues 94 59,990
Daiwa House Industry Co. Ltd. 2,000 13,330
Drott AB 2,130 19,005
Fomento de Construcciones Y Contra 472 9,569
Grupo Dragados SA 888 6,781
Hazama Corporation 900 508
Impregilo SpA 1,043 553
Kajima Corporation 9,000 20,914
Kumagai Gumi Co. Ltd. 600 317
Leighton Holdings Ltd. 661 1,749
Obayashi Corp. 1,000 3,481
Penta-Ocean Construction Co. Ltd. 800 904
Sanitec 61 709
Sekisui House Ltd. 4,000 36,662
Sirti SpA 448 843
Skanska/Frueher AB 500 18,236
Taylor Woodrow Plc 1,411 3,460
------------
210,578
Data Processing & Reproduction - 1.53%
Canon, Inc. 3,000 137,206
Dassault Systemes 55 4,230
Fujitsu Ltd. 7,000 198,306
Getronics NV 221 13,180
Nidec Corporation 200 13,887
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Data Processing & Reproduction - cont'd.
OCE NV 275 $3,675
Olivetti & Co. SpA 2,891 9,567
Tietoenator Corporation 225 10,841
Wm-Data Nordik AB 300 10,506
------------
401,398
Electrical & Electronics - 7.04%
ABB AG 700 78,542
Alcatel 572 132,601
ARM Holdings Plc 1,430 14,472
L M Ericsson Telefon AB 3,100 275,563
Hitachi Ltd. 8,000 95,542
Johnson Electric Holdings Ltd. 1,500 12,036
Misys Plc 717 8,227
Mitsubishi Electric Corp. 10,000 85,451
NEC Corporation 6,000 163,311
Nokia AB 8,808 504,850
Samsung Electro-Mechanics Co. Ltd. 210 14,287
Schneider SA 438 28,669
Siemens AG 2,250 318,594
Toshiba Corporation 12,000 116,428
------------
1,848,573
Electronic Components & Instruments - 4.27%
Advantest Corporation 400 91,506
Alps Electric Co. Ltd. 1,000 12,730
Creative Technology Ltd. 600 14,591
Fanuc Ltd. 1,100 115,280
Kyocera Corporation 800 133,833
LG Electronics, Inc. 170 4,534
Murata Manufacturing Co. Ltd. 1,000 194,417
Psion PlC 117 7,100
Sage Group Plc 1,840 20,498
Samsung Electronics Co. Ltd. 160 43,253
Sony Corporation 1,400 162,015
S T Microelectronics NV 714 136,246
Tokyo Electron Ltd. 1,000 163,033
Venture Manufacturing, Singapore 2,000 23,440
------------
1,122,476
Energy Sources - 5.61%
BP Amoco Plc 42,307 365,249
Broken Hill Proprietary Co. Ltd. 2,384 25,673
Burmah Castrol Plc 493 12,128
Ente Nazionale Idrocarburi SpA 21,265 105,746
Japan Energy Corp. 1,000 861
Lasmo Plc 2,795 4,700
Nippon Mitsubishi Oil Corp. 11,000 38,087
OMV AG 219 17,988
Repsol SA 5,525 113,012
Royal Dutch Petroleum Co. NV 7,396 426,283
Santos Ltd. 1,779 4,052
Total Fina SA 2,373 360,052
------------
1,473,831
</TABLE>
The accompanying notes are an integral part of the financial statements.
42
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Financial Services - 2.71%
31 Group Plc 902 $18,060
Acom Co. Ltd. 600 57,825
Amvescap Plc 1,018 14,899
Colonial Ltd. 1,930 9,965
Credit Saison Co., Ltd. 100 1,634
Daiwa Securities Group, Inc. 6,000 91,654
ING Groep NV 2,745 149,779
New Schroders Plc 311 1,453
Nichiei Company Ltd. 300 5,944
Nidec Corporation 200 16,850
Nomura Securities Co. Ltd. 7,000 176,272
OM Gruppen AB 300 12,447
Orix Corporation 240 34,262
Promise Company Ltd. 600 48,604
Samsung Securities Co. Ltd. 280 4,718
Schroder Plc 311 4,818
Takefuji Corporation 600 63,491
------------
712,675
Food & Household Products - 2.91%
Ajinomoto Co., Inc. 3,000 34,301
Azucarera Ebro Agricolas 165 2,220
Cadbury Schweppes Plc 6,472 44,337
Eridania Beghin-Say SA 88 7,268
Goodman Fielder Wattie Ltd. 3,039 2,254
Groupe Danone 298 65,154
Jeronimo Martins Sgps. SA 565 10,078
KAO Corporation 3,000 91,376
Nestle SA 180 317,300
Nissin Food Products Co. 100 2,296
Parmalat Finanziaria SpA 4,303 4,495
Prima Inmobiloaroa SA 1,140 9,276
Raisio Group Plc 508 1,293
Unilever NV 2,540 115,363
Unilever Plc 9,345 56,162
------------
763,173
Forest Products & Paper - 0.37%
Amcor Ltd. 1,574 4,660
Arjo Wiggins Appleton Plc 1,920 5,769
Buhrmann NV 267 6,771
Cartiere Burgo SpA 210 1,985
Oji Paper Co. Ltd. 5,000 31,385
Paperlinx Ltd. 525 946
Portucel Industrial SA 660 4,146
Reno de Medici SpA 295 654
Rexam Plc 905 3,466
Svenska Cellulosa AB 900 17,064
UPM-Kymmene4 844 21,867
------------
98,713
Gold Mines - 0.01%
Normandy Mining Ltd. 3,014 1,496
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Health & Personal Care - 6.97%
Astrazeneca Plc 4,621 $193,752
Aventis SA 2,036 111,981
Beiersdorf AG 700 45,628
CSL Ltd. 257 3,092
Faulding & Co. Ltd. 304 1,216
Glaxo Wellcome Plc 9,486 293,169
L'Oreal 184 124,787
Nycomed Amersham 963 7,347
Roche Holding AG Chf100 Ords 5 59,871
Roche Holding Chf Genusschein NPV 23 240,196
Sankyo Co. Ltd. 2,000 44,068
Sanofi Synthelabo SA 2,008 74,936
Shiseido Co. Ltd. 1,000 12,646
Smith & Nephew Plc 1,694 4,879
Smithkline Beecham Plc 14,539 199,201
Taisho Pharmaceutical Co. Ltd. 2,000 67,028
Takeda Chemical Industries Ltd. 4,000 263,297
Terumo Corporation 1,000 30,274
Yamanouchi Pharmaceutical Co. 1,000 52,863
------------
1,830,231
Industrial Components - 0.93%
BICC Plc 1,343 1,641
Bridgestone Corporation 3,000 65,130
Cie Generale des Establissement 410 13,605
Continental AG 450 8,239
Denso Corporation 2,000 48,975
Fag Kugelfischer Georg Schaefer 550 4,400
Pirelli SpA 5,441 13,034
SKF AB 400 8,566
Sumitomo Electric Industries 5,000 66,611
Valeo SA 246 13,642
------------
243,843
Insurance - 5.20%
Aegon NV 1,642 118,001
Allianz AG 900 346,340
Allied Zurich Plc 2,465 24,524
AMP, Ltd. 2,326 20,376
Assicurazione Generali SpA 3,014 85,763
Axa 938 139,081
CGU Plc 1,932 27,704
Cie De Seguros Tranquilidad SA 65 1,909
Corporacion Mapfre Cia International 372 5,634
Generali Holding, Vienna 54 7,855
Legal & General Group Plc 14,174 37,075
Munchener Rueckversicherungs 600 175,911
Prudential Corporation Plc 3,499 53,661
QBE Insurance Group Ltd. 971 4,079
Riunione Adriatica de Sicurta 1,183 12,088
Sai Sta Assicuratrice Industrial 336 2,639
Sampo Insurance Company Ltd. 332 12,556
Skandia Forsakring AB 2,100 100,480
Swiss Ruckversicher 45 72,306
</TABLE>
The accompanying notes are an integral part of the financial statements.
43
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Insurance - cont'd.
Tokio Marine & Fire Insurance Co. 6,000 $58,547
Zurich Allied AG 140 59,505
------------
1,366,034
Leisure & Tourism - 0.48%
Accor SA 526 19,534
Autogrill SpA 505 4,821
Compass Group Plc 1,002 14,431
Hilton Group Plc 2,840 11,939
Hongkong & Shanghai Hotels Ltd. 1,500 809
Hotel Properties Ltd. 6,000 5,344
Oriental Land Company Plc 400 42,476
Rank Group Plc 1,704 3,920
Shangri-La Asia Ltd. 2,000 2,234
Sol Melia SA 495 6,075
Tabcorp Holdings Ltd. 788 4,218
Telepizza SA 1,144 9,246
------------
125,047
Machinery & Engineering - 0.96%
Atlas Copco AB Ser A 500 11,683
Atlas Copco AB Ser B 300 6,859
BWT (Benckiser) AG 13 3,817
GKN Plc 2,453 33,991
Kawasaki Heavy Industries Ltd. 1,000 1,120
Komatsu Ltd. 4,000 19,257
Kubota Corp. Ltd. 1,000 3,259
Linde AG 350 13,739
Man AG 500 16,523
Metso 488 6,433
Mitsubishi Heavy Industries Ltd. 15,000 46,660
Mitsui Engineering & Shipbuilding Co. 800 496
Sembcorp Industries Ltd. 12,000 12,657
SMC Corporation 300 59,714
Stork NV 143 1,768
Sulzer AG 10 6,402
VA Technologies AG 115 6,846
Zardoya Otis SA 248 2,036
------------
253,260
Merchandising - 2.32%
Boots Company Plc 1,880 14,438
Carrefour 1,595 103,821
Casino Guichard Perrachon 224 20,445
Coles Myer Ltd. 2,687 10,062
Daiei, Inc. 1,000 2,963
Dixons Group 2,573 10,416
Douglas Holding AG 350 10,977
Great Universal Stores Plc 1,704 10,320
Hennes & Mauritz AB 3,200 84,943
Ito-Yokado Company Ltd. 1,000 73,045
Jusco Company Ltd. 2,000 37,032
Karstadt AG 100 3,045
Kingfisher Plc 2,640 21,579
KoninklijkeAhold NV 1,752 40,854
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Merchandising - cont'd.
Marks & Spencer Plc 4,980 $18,434
Marui Company Ltd. 1,000 18,794
Pinault-Printemps Redoute 357 72,017
Rinascente Per L'Esercizio 527 2,395
J. Sainsbury Plc 3,214 16,764
Tesco Plc 6,258 21,289
Valora Holding AG 20 5,196
Woolworths Ltd. 2,745 9,237
------------
608,066
Metals - Non-Ferrous - 0.20%
Companhia Siderurgica Nacional 86,000 2,429
North Ltd. 999 1,718
Outakumpu 394 4,639
Pechiney SA 247 10,823
Rio Tinto Ltd. 274 4,070
Rio Tinto Plc 1,198 18,652
WMC Ltd. 2,651 11,008
------------
53,339
Metals - Steel - 0.60%
Acerinox SA 222 8,779
Boehler-Uddeholm 32 1,247
Corus Group Plc 2,590 3,488
Kawasaki Steel Corporation 5,000 7,777
Natsteel Ltd. 3,000 7,348
Nippon Steel Corporation 28,000 62,991
Pohang Iron & Steel Co. Ltd. 60 4,693
Sandvik AB Ser A 300 7,160
Sandvik AB Ser B 800 19,273
SSAB Swedish Steel 300 3,446
Sumitomo Metal Industries Ltd. 5,000 3,240
Thyssen Krupp AG 900 18,900
Usinor 757 9,944
------------
158,286
Misc Materials & Commodities - 0.39%
Asahi Glass Company Ltd. 6,000 52,659
Caradon Plc 1,594 3,971
Cie de Saint Gobain 267 36,434
Corticeira Amorim Socdad Gestora 158 1,230
Mayr-Melnhof Karton AG 92 4,339
Pilkington Plc 3,237 3,578
------------
102,211
Multi-Industry - 0.92%
Alusuisse Lonza Group AG 10 6,332
Corporacion Financiera Alba SA 444 11,496
Hutchison Whampoa Ltd. 5,000 72,536
Invensys Plc 6,839 33,009
Keppel Corporation Ltd. 5,000 11,603
Lagardere Groupe SCA 448 30,342
Metra AB 211 3,434
Pacific Dunlop Ltd. 2,596 2,183
Preussag AG 500 20,550
SNIA SpA 1,145 1,063
</TABLE>
The accompanying notes are an integral part of the financial statements.
44
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Multi-Industry - cont'd.
Sonae Investimentos SA 332 $13,341
Southcorp Ltd. 1,529 4,769
Sumitomo Corporation 1,000 11,202
Swire Pacific Ltd. 2,000 11,298
T.I. Group Plc 1,043 5,667
Trelleborg AB 700 4,015
------------
242,840
Real Estate - 3.24%
AMP Diversified Porperty Trust 949 1,319
Beni Stabili SpA 3,094 1,533
British Land Company Plc 12,859 85,439
Burford Holdings PlC 6,010 7,715
Canary Wharf Group 6,333 34,511
Capital Shopping Centres Plc 2,710 15,991
Castellum AB 1,290 11,942
Cheung Kong Holdings Ltd. 3,000 35,819
Cie Fonciere Klepierre 260 21,509
City Developments Ltd. 4,000 18,166
DBS Land Ltd. 8,000 11,345
First Capital Corporation Ltd. 2,000 2,004
Frogmore Estates PlC 500 3,507
Gecina 120 11,095
General Property Trust Units 3,413 5,282
Grantchester Holdings Plc 14,550 32,735
Great Portland Estates Plc 6,370 20,816
Hammerson Plc 4,410 28,941
Hang Lung Development Co. Ltd. 3,000 2,330
Hopewell Holdings Ltd. 2,000 924
Hysan Development Co. Ltd. 2,000 2,247
Immeubles de France 430 7,033
IMMSI SpA 448 701
Inmobiliaria Colonial 641 8,450
Land Securities Plc 7,134 86,081
Lend Lease Corp. Ltd. 1,318 14,283
MEPC Plc 7,782 51,494
Metrovacesa SA 1,359 22,918
Mitsubishi Estate Company Ltd. 4,000 44,994
Mitsui Fudosan Company Ltd. 2,000 20,331
New World Development Co. Ltd. 3,057 4,141
Parkway Holdings Ltd. 3,000 8,614
Rodamco Continental Europe NV 330 11,430
SILIC 50 6,591
SIMCO 300 19,391
Sino Land Company Ltd. 4,123 1,548
Slough Estates 6,513 36,100
Stockland Trust Group 794 1,609
Ste Fonciere Lyonnaise SA 120 12,196
Sun Hung Kai Properties Ltd. 3,000 23,494
Tornet Fastighets AB 710 9,186
Unibail SA 260 32,855
Uni-Invest NV 1,110 12,059
United Industrial Corp. Ltd. 10,000 4,190
United Overseas Land Ltd. 4,000 2,907
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Real Estate - cont'd.
Vallehermoso SA 5,192 $35,117
Wates City of London Properties Plc 3,740 4,287
Westfield Trust 3,356 6,154
Wharf Holdings Ltd. 3,000 6,220
------------
849,544
Recreation - Other Consumer Goods - 0.85%
Adidas Salomon AG 200 12,809
Fuji Photo Film Company Ltd. 2,000 80,174
Nintendo Company Ltd. 600 99,986
Ste. BIC 192 7,645
The Swatch Group AG 20 21,432
------------
222,046
Telecommunications - 6.14%
British Telecommunications Plc 5,423 97,098
Cable & Wireless HKT Ltd. 5,178 12,232
Deutsche Telekom AG 2,588 167,963
France Telecom SA 860 133,067
Koninklijke KPN NV 345 34,767
Marconi Plc 3,327 41,388
Netcom AB 100 7,105
Nippon Telegraph & Telephone 11 136,463
Portugal Telecom SA 1,598 17,825
Sagem SA 10 12,436
Singapore Telecommunications Ltd. 10,900 15,713
SK Telecom Co. Ltd. 100 26,583
Sonera Corporation 613 33,715
Swisscom AG 50 17,628
Telecom Italia Mobile SpA Eur 20,959 167,483
Telecom Italia SpA Itl1000 Ords 3,116 43,568
Telecom Italia SpA Itl1000 Risp 346 2,180
Telefonica SA 3,536 78,693
Telesp Celular Participacoes SA 464,000 7,213
Telstra Corporation Ltd. 6,524 27,966
TNT Post Groep NV 1,432 31,244
Vodafone Airtouch Plc 109,046 499,151
------------
1,611,481
Textiles & Apparel - 0.03%
Benetton Group SpA 4,146 7,632
Toyobo Company Ltd. 800 1,126
------------
8,758
Transportation - Airlines - 0.34%
Japan Airlines Company Ltd. 2,000 6,221
Singapore Airlines Ltd. 8,000 82,977
------------
89,198
Transportation - Road & Rail - 1.02%
Brisa Auto-Estradas de Portugal 2,155 15,222
Central Japan Railway Company 10 53,696
East Japan Railway Company 19 112,577
Hankyu Corp. 200 620
Kinki Nippon Railway Company Ltd. 11,000 41,550
Nippon Express Company Ltd. 6,000 37,884
</TABLE>
The accompanying notes are an integral part of the financial statements.
45
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Transportation - Road & Rail - cont'd.
Nippon Yusen 1,000 $3,981
Odakyu Electric Railway Co. Ltd. 470 1,401
------------
266,931
Transportation - Shipping - 0.07%
Koninklijke Nedlloyd NV 77 1,628
Neptune Orient Lines Ltd. 4,000 3,586
Peninsular & Orient Steam Navigation 1,204 11,904
------------
17,118
Utilities - Electrical & Gas - 4.44%
Australian Gas Light Company 1,192 6,196
BG Plc 9,090 54,877
Centrica Plc 11,408 40,852
CLP Holdings Ltd. 4,500 20,163
Electricidade de Portugal 4,681 82,982
Endesa SA 5,627 122,772
Gas Natural Sdg SA 2,610 43,659
Hongkong & China Gas Company Ltd. 11,700 12,768
Iberdrola SA 5,247 67,305
Italgas Sta Italiana Per Il Gas 2,122 9,356
Kansai Electric Power Co., Inc. 6,000 94,431
National Grid Group Plc 3,287 27,124
National Power Plc 3,488 15,871
Oesterreichische Elektrizitaets 235 24,267
Osaka Gas Company Ltd. 11,000 30,042
Petroleo Brasilieros SA 59,000 13,071
RWE AG 2,050 66,477
Tohoku Electric Power Co., Inc. 3,000 35,384
Tokyo Electric Power Co., Inc. 7,400 174,698
Tokyo Gas Co. 3,000 6,610
Union Electrica Fenosa 1,743 33,577
Veba AG 2,350 117,928
Viag AG 3,400 66,332
------------
1,166,742
Wholesale & International Trade - 1.03%
Hagemeyer NV 243 4,783
Kesko Corporation 547 5,967
Metro AG 900 35,019
Mitsubishi Corporation 1,000 8,703
Mitsui & Company 1,000 7,416
Softbank Corporation 800 197,010
Sumitomo Corporation 1,000 11,202
------------
270,100
TOTAL COMMON STOCKS
(Cost $21,956,139) $23,363,632
------------
PREFERRED STOCKS - 0.80%
Automobiles - 0.02%
Volkswagen AG 150 $3,300
------------
Banks - 0.05%
Banco Bradesco SA 527,000 3,853
Banco Itau SA 116,000 8,673
------------
12,526
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Broadcasting & Publishing - 0.16%
News Corporation 4,023 $43,277
------------
Electric Utilities - 0.02%
Cemig (Cia Energetica de Minas) 249,000 3,792
RWE AG 50 1,314
------------
5,106
Food & Beverages - 0.05%
Brahma (Cia Cervejaria) 5,000 3,628
Unilever NV 1,951 9,134
------------
12,762
Food & Drug Retailing - 0.01%
Pao de Acucar Cia 116,000 3,309
------------
Oil & Gas - 0.03%
Petrol Brasilieros 42,000 10,005
------------
Paper & Forest Products - 0.01%
Aracruz Celulos SA 1,000 1,894
------------
Software - 0.34%
Sap AG 150 88,433
------------
Telecommunications - 0.11%
Embratel Participacoes SA 279,000 6,258
Tele Centro Sul Participacoes SA 282,000 3,686
Tele Norte Leste Participacoes SA 274,000 5,612
Telecomunicoes del Sao Paulo SA 316,000 7,874
Tele Sudeste Celular SA 105,000 879
Telesp Cellular Participacoes SA 242,000 4,343
------------
28,652
------------
TOTAL PREFERRED STOCKS
(Cost $168,365) $209,264
------------
RIGHTS & WARRANTS - 0.01%
Banca Intesa SpA 747 $1,307
Banque Nationale de Paris 338 1,921
------------
TOTAL RIGHTS AND WARRANTS
(Cost $6,476) $3,228
------------
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
CORPORATE BONDS - 0.00%
AMP Group Finance, 7.593% due 12/29/49 $14 $7
------------
TOTAL CORPORATE BONDS
(Cost $1,509) $7
------------
SHORT TERM INVESTMENTS - 0.00%
SSGA Money Market Fund 1,000 $1,000
------------
REPURCHASE AGREEMENT - 10.20%
Repurchase Agreement with State Street Bank &
Trust Co. dated 04/28/00 at 4.75%, to be
repurchased at $2,680,043 on 05/01/00,
collateralized by $2,540,000,000 U.S. Treasury
Bonds, 6.75% due 08/15/26 (valued at $2,770,444,
including interest) (Cost $2,679,000) $2,679,000
------------
TOTAL INVESTMENTS (International Equity Fund)
(Cost $24,812,489) $26,256,131
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
46
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
-----------------------------------------------------
Global Equity Fund
-----------------------------------------------------
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
COMMON STOCKS - 92.60%
Air Freight & Couriers - 0.81%
TNT Post Groep NV* 19,625 $428,186
------------
Auto Components - 2.07%
Perlos Corp. 15,650 579,767
Toyoda Gosei* 9,000 520,761
------------
1,100,528
Automobiles - 0.67%
General Motors Corp.* 2,852 274,683
Harley Davidson, Inc.* 2,018 80,342
------------
355,025
Banking - 3.44%
Banco Santander Central Hispano* 32,275 336,544
Fifth Third Bancorp 1,314 82,946
Foreningssparbank 34,475 507,551
Nordic Baltic Holding 74,425 468,995
Northern Trust Corp. 903 57,905
Sao Paolo IMI SpA* 26,650 373,104
------------
1,827,045
Beverages - 0.81%
Heineken NV 7,775 431,163
------------
Biotechnology - 0.47%
Amgen, Inc.* 3,174 177,744
Human Genome Sciences, Inc.* 285 21,820
PE Corp. Celera Genomics Group* 602 49,665
------------
249,229
Commercial Services & Supplies - 0.80%
Automatic Data Processing, Inc. 3,880 208,792
Cendant Corp.* 4,816 74,347
Devry, Inc.* 6,049 144,042
------------
427,181
Communications Equipment - 8.65%
Alcatel* 2,400 556,369
Ciena Corp.* 904 111,757
Cisco Systems, Inc.* 11,424 792,004
Comverse Technology, Inc.* 2,152 191,932
E Tek Dynamics, Inc.* 651 133,292
Ericsson Telephone Co.* 6,675 590,320
JDS Uniphase Corp.* 5,388 558,668
Nokia Corp. 24,243 1,378,821
Redback Networks, Inc.* 1,141 90,567
Sycamore Networks, Inc.* 821 64,449
Tellabs, Inc.* 2,284 125,192
------------
4,593,371
Computers & Peripherals - 2.79%
Dell Computer Corp.* 3,139 157,342
E M C Corp.* 2,438 338,730
Juniper Networks, Inc.* 744 158,239
NEC Corp.* 23,000 626,024
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Computers & Peripherals - cont'd.
Network Appliance, Inc.* 738 $54,566
Sun Microsystems, Inc.* 1,567 144,066
------------
1,478,967
Diversified Telecommunications - 5.52%
Cable & Wireless 23,925 397,086
Embratel Participacoes SA* 10,875 244,688
Energis Plc* 3,375 166,679
Level 3 Communications, Inc.* 3,645 324,405
Nippon Telephone & Telegraph Corp.* 42 521,039
NTL, Inc.* 3,750 286,875
Swisscom AG* 1,170 412,490
Telefonos de Mexico SA 7,000 411,688
Teligent, Inc.* 1,043 39,113
Williams Communications Group* 1,698 62,826
Winstar Communications, Inc.* 1,599 63,760
------------
2,930,649
Electrical Equipment - 4.51%
AT & T CDA, Inc. 8,375 356,984
Citizen Electronics* 3,440 433,125
Comdisco, Inc.* 2,622 81,446
Corning, Inc.* 1,727 341,083
Mitsubishi Electronics* 74,000 632,338
Nortel Networks Corp. 2,461 278,708
RF Micro Devices, Inc.* 2,593 269,834
------------
2,393,518
Electronic Equipment & Instruments - 6.48%
Applied Micro Circuits Corp.* 2,108 271,669
Broadcom Corp.* 1,323 228,052
Jabil Circuit, Inc.* 2,339 95,753
Natsteel Electronics* 73,000 419,221
PE Corp.* 2,665 159,900
Philips Electronics NV* 19,375 864,609
Samsung Electronics Ltd.* 3,500 560,875
SDL, Inc.* 660 128,700
Solectron Corp.* 1,183 55,379
Sony Corp.* 2,000 231,449
Taiyo Yuden Co.* 6,000 424,941
------------
3,440,548
Energy Equipment & Services - 0.75%
Saipem Spa* 80,500 398,113
------------
Financial Services - 1.73%
Aiful Corp.* 3,600 363,283
American Express Co. 653 97,991
Citigroup, Inc. 6,496 386,106
Charles Schwab Corp.* 1,570 69,865
------------
917,245
Food & Drug Retailing - 0.27%
Walgreen Co.* 5,199 146,222
------------
Food Products - 0.75%
Ajinomoto Co., Inc.* 35,000 400,176
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
47
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Gas Utilities - 0.60%
Tokyo Gas Co.* 146,000 $321,696
------------
Health Care Equipment & Supplies - 2.63%
Affymetrix, Inc.* 409 55,241
Baxter International, Inc. 4,782 311,428
Guidant Corp.* 5,428 311,431
Nycomed Amersham* 43,650 333,008
Synthes-Stratec, Inc. 144A 900 383,056
------------
1,394,164
Hotels, Restaurants & Leisure Time - 0.97%
Accor* 8,700 323,089
Carnival Corp.* 2,491 61,964
McDonald's Corp. 3,477 132,561
------------
517,614
Household Durables - 3.83%
Electrolux AB 19,775 334,141
Philips Electronics 18,480 824,384
Pioneer Electronics* 25,000 682,775
Thomson Multimedia 1,950 191,456
------------
2,032,756
Household Products - 0.27%
Colgate Palmolive Co. 2,549 145,612
------------
Industrial Conglomerates - 3.12%
Berkshire Hathaway, Inc.* 68 130,296
Cemex SA* 14,600 319,375
General Electric Co. 4,319 679,163
Tyco International Ltd. 11,473 527,041
------------
1,655,875
Insurance - 1.42%
Alleanza Assicurazioni* 49,725 514,433
American International Group, Inc.* 2,199 241,203
------------
755,636
Internet Software & Services - 0.44%
7-24 Solutions, Inc.* 358 18,079
Yahoo!* 1,643 214,001
------------
232,080
I T Consulting & Services - 1.39%
Altran Technologie* 1,850 378,076
Tietoenator OYJ* 7,425 357,754
------------
735,830
Machinery - 1.32%
Danaher Corp. 2,270 129,674
Invensys 117,900 569,050
------------
698,724
Media - 7.09%
AMFM, Inc.* 2,367 157,110
A T & T Corp.-Liberty Media Group* 8,293 414,132
Comcast Corp.* 6,342 254,076
Walt Disney Co. 3,212 139,120
Echostar Communications Corp.* 4,215 268,443
Exodus Communications, Inc.* 694 61,376
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Media - cont'd.
Nippon TV Network* 610 $455,742
Omnicom Group 1,170 106,543
Socite Europeenne Satellite* 2,675 406,422
Time Warner, Inc. 7,250 652,047
United Global Com* 6,375 338,672
USA Networks, Inc.* 5,009 115,207
Viacom, Inc.* 7,298 396,829
------------
3,765,719
Multiline Retail - 2.80%
Costo Wholesale Corp. 8,912 481,805
Don Quijote Ltd.* 1,107 187,549
Kohl's Corp.* 4,952 237,696
Vivendi* 5,850 578,624
------------
1,485,674
Oil & Gas - 2.41%
BP Amoco Plc* 6,775 345,525
Petroleo Brasilieros* 1,775,000 393,243
Total Fina Elf* 3,570 541,672
------------
1,280,440
Paper & Forest Products - 0.56%
Aracruz Celulose SA* 15,900 297,131
------------
Personal Products - 0.10%
Gillette Co. 1,401 51,837
------------
Pharmaceuticals - 5.58%
American Home Products Corp.* 929 52,198
Ares-Serano SA* 105 322,388
Bristol Myers Squibb Co. 2,324 121,865
Genentech, Inc.* 1,489 174,213
IDEC Pharmaceuticals Corp.* 411 26,304
Incyte Pharmaceuticals, Inc.* 234 18,018
Medimmune, Inc.* 426 68,133
Lilly, Eli & Co.* 2,961 228,922
Merck & Company, Inc. 2,015 140,043
Novo Nordisk AS 3,325 446,396
Pfizer, Inc.* 7,129 300,309
Sankyo Company* 1,000 22,034
Schering Plough Corp.* 3,561 143,553
Takeda Chemical Industries* 5,000 329,121
Warner Lambert Company 4,988 567,697
------------
2,961,194
Road & Rail - 1.06%
Nippon Express Company* 89,000 561,940
------------
Semiconductor Equipment & Products - 4.80%
Analog Devices, Inc.* 1,576 121,057
ASM Lithography Holding NV* 10,725 429,000
Intel Corp.* 5,453 691,508
Maxim Integrated Prouducts, Inc.* 2,330 151,013
STMicroelectronics* 2,000 381,640
Texas Instruments, Inc. 3,561 579,998
Vitesse Semiconductor Corp.* 2,849 193,910
------------
2,548,126
</TABLE>
The accompanying notes are an integral part of the financial statements.
48
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Software - 4.36%
Amdocs Limited* 554 $37,499
Ariba, Inc.* 1,292 95,850
Business Objects SA* 806 78,887
Checkpoint Software* 1,075 185,975
Dassault Systemes* 5,800 446,077
Foundry Networks, Inc.* 485 44,135
Inktomi Corp. 2,104 323,884
Mercury Interactive Corp.* 1,427 128,430
Oracle Corp.* 2,849 227,742
Siebel Systems, Inc.* 1,169 143,641
Tibco Software, Inc.* 1,087 96,811
Verisign, Inc.* 1,916 267,043
Veritas Software Corp.* 2,243 240,597
------------
2,316,571
Specialty Retail - 0.57%
Home Depot, Inc. 5,422 303,971
------------
Textiles & Apparel - 0.61%
Swatch Group* 300 321,475
------------
Tobacco - 0.79%
Altadis SA* 35,650 419,054
------------
Wireless Telecommunication Services - 5.36%
China Telecom Ltd.* 48,000 343,553
HPY Holding 11,000 396,104
Netcom ASA* 9,075 359,616
Nextel Communications, Inc.* 2,497 273,265
Partner Communication Company, Ltd.* 32,100 343,069
Sprint Corp.* 3,028 166,540
Vodaphone Airtouch Public Ltd. 145,000 663,728
Vodaphone Airtouch Group Plc 1,734 81,498
VoiceStream Wireless Corp.* 2,191 216,909
------------
2,844,282
TOTAL COMMON STOCKS
(Cost $51,025,063) $49,164,567
------------
PREFERRED STOCK - 0.62%
Marschollek Lauten*
(Cost $361,249) 625 $332,077
------------
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
REPURCHASE AGREEMENT - 6.78%
Repurchase Agreement with State Street Bank & Trust
Co. dated 04/28/00 at 4.75%, to be repurchased at
$3,598,400 on 05/01/00, collateralized by $3,775,000
U.S. Treasury Notes, 5.625% due 05/15/08 (valued at
$3,770,496, including interest)
(Cost $3,597,000) $3,597,000 $3,597,000
------------
SHORT TERM INVESTMENTS - 0.00%
SSGA Money Market Fund 1,000 1,000
------------
TOTAL INVESTMENTS
(Global Equity Fund) (Cost $54,984,312) $53,094,644
------------
</TABLE>
<TABLE>
----------------------------------------------------
Small Cap Growth Fund
----------------------------------------------------
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
COMMON STOCKS - 91.96%
Air Freight & Couriers - 2.05%
Airborne Freight Corp. 4,700 $ 100,756
EGL, Inc. 600 13,762
------------
114,518
Biotechnology - 2.14%
Gene Logic 800 21,500
Lynx Therapeutics, Inc. 1,200 28,800
Medarex, Inc. 1,300 68,900
------------
119,200
Commercial Services & Supplies - 0.92%
DeVry, Inc. 800 19,050
Getty Images, Inc. 1,000 30,375
Strayer Education, Inc. 100 2,056
------------
51,481
Communications Equipment - 14.09%
About.com, Inc. 600 20,588
Adaptive Broadband Corp. 1,400 45,500
Advanced Fibre Communications 1,000 45,688
Airnet Communications Corp. 100 1,775
Antec Corp. 2,000 107,500
Aspect Communications, Inc. 100 3,550
Audio Codes, Ltd. 500 37,500
Gilat Satellite Networks, Ltd. 300 25,762
Marimba, Inc. 1,500 29,719
Odetics, Inc. 3,700 38,850
Pairgain Technologies, Inc. 2,500 62,188
Polycom, Inc. 700 55,387
Powerwave Technologies, Inc. 700 145,644
Proxim, Inc. 500 38,469
Seachange International. Inc. 1,500 45,000
Tekelec, Inc. 1,700 59,500
Westell Technologies 800 22,750
------------
785,370
Computers & Peripherals - 5.55%
DSP Group, Inc. 1,300 92,462
Emulex Corp. 300 13,613
Excelon Corporation 3,100 36,425
Interlink Electronics 2,300 69,000
Radiant Systems, Inc. 1,800 33,525
Sandisk Corp. 700 64,138
------------
309,163
Diversified Financial - 0.58%
Americredit Corp. 900 16,819
Frontline Capital Group 900 15,412
------------
32,231
Diversified Telecommunication - 3.42%
Caprock Communications Corp 400 13,400
CTC Communications Group, Inc. 1,950 65,813
Powertel, Inc. 800 53,800
Viatel, Inc. 1,500 57,375
------------
190,388
</TABLE>
The accompanying notes are an integral part of the financial statements.
49
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Electrical Equipment - 3.91%
Anaren Microwave, Inc. 1,000 $104,000
Asyst Technologies, Inc. 1,100 58,850
Harris Corp. 1,700 54,931
------------
217,781
Electronic Equipment & Instruments - 4.04%
Anadigics, Inc. 900 67,725
California Amplifier, Inc. 2,200 59,400
Newport Corp. 600 72,788
Versant Corp. 3,900 25,350
------------
225,263
Energy Equipment & Services - 8.10%
BJ Services Company 1,200 84,300
Cooper Cameron Corp. 900 67,500
National Oil Well, Inc. 1,200 28,725
Petroleum Geo Services, Inc. 800 13,000
Precision Drilling Corp. 2,200 70,400
Rowan Companies, Inc. 2,200 61,463
Smith International, Inc. 1,100 83,600
Stone Energy Corp. 900 42,525
------------
451,513
Health Care & Pharmaceuticals - 7.68%
Abgenix, Inc 400 35,825
Alkermes, Inc. 1,300 69,225
Advance Paradiam, Inc. 1,600 20,000
ChiRex, Inc. 1,300 22,100
Coherent, Inc. 1,000 57,812
Diversa Corp. 1,100 29,700
Medicis Pharmaceutical Corp. 1,100 48,125
Mid Atlantic Medical Services, Inc. 4,100 38,181
Minimed, Inc. 500 61,469
Oxford Health Plans, Inc. 2,400 45,600
------------
428,037
Industrial Mfg. & Processing - 1.95%
Advanced Energy Industries, Inc. 500 34,500
Applied Power, Inc. 2,600 74,425
------------
108,925
Insurance - 0.31%
Enhance Financial Services Group, Inc. 700 7,087
Reinsurance Group of America, Inc. 400 9,950
------------
17,037
Internet & Catalog Retail - 0.57%
Valuevision International, Inc. 1,600 31,900
------------
Internet Software & Services - 0.76%
Spyglass, Inc. 800 42,400
------------
I T Consulting & Services - 1.59%
Acxiom Corp. 1,540 41,580
Titan Corp. 1,100 47,231
------------
88,811
Leisure Time - 0.54%
American Classic Voyages Co. 1,500 30,094
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Media - 2.47%
Cumulus Media, Inc. 1,200 $15,750
Entercom Communications Corp. 900 38,250
Information Architects Corp. 3,600 39,600
Pegasus Communications Corp. 300 32,738
Salem Communications Corp. 1100 8,387
Youthstream Media Networks, Inc. 500 3,188
------------
137,913
Retail Trade - 0.77%
Ames Department Stores, Inc. 1,000 17,938
Ann Taylor Stores Corp. 1,200 24,825
------------
42,763
Semiconductor Equipment & Products - 10.21%
Alpha Industries, Inc. 1,800 93,600
Avant Corp. 500 9,000
Burr-Brown Corp. 1,700 115,813
C-Cube Microsystems, Inc. 1,100 70,675
Cymer, Inc. 1,100 42,969
Photronics, Inc. 1,700 56,631
PRI Automation, Inc. 800 63,900
Telcom Semiconductor, Inc. 2,000 49,125
Varian Semiconductor Equipment, Inc. 1,000 67,250
------------
568,963
Software - 20.31%
Allaire Corp. 1,000 55,062
American Software, Inc. 1,300 9,750
Aspect Development , Inc. 1500 103,687
Backweb Technologies, Ltd. 2,300 53,906
Bluestone Software, Inc. 1,300 27,381
Breakaway Solutions, Inc. 200 5,275
Broadbase Software, Inc. 100 1,581
Broadvision, Inc. 739 32,470
Business Objects SA 900 88,087
Clarus Corp. 800 32,150
Documentum, Inc. 1,400 82,600
Exchange Applications, Inc. 1,800 21,938
Hotjobs.com, Ltd. 2,300 26,738
Internet.com Corp. 200 3,800
Iona Technologies PLC 700 39,769
Manugistics Group, Inc. 1,700 72,781
Mercury Interactive Corp. 1,200 108,000
National Instruments Corp. 450 21,937
Packeteer, Inc. 1,900 42,750
Peregrine Systems, Inc. 2,600 62,563
Puma Technology, Inc. 800 24,500
QRS Corp. 800 26,400
Remedy Corp. 1,400 74,375
RSA Sec, Inc. 600 35,212
Santa Cruz Operation, Inc. 1,700 10,306
Sybase, Inc. 1,300 26,244
Unify Corp. 2,600 31,200
</TABLE>
The accompanying notes are an integral part of the financial statements.
50
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Software - cont'd.
Wind River Systems, Inc. 200 $8,537
Zapme Corp. 800 3,100
------------
1,132,099
TOTAL COMMON STOCKS
(Cost $5,059,786) $5,125,850
------------
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
SHORT TERM INVESTMENTS - 8.04%
SSGA Money Market Fund $447,988 $447,988
------------
TOTAL INVESTMENTS (Small Cap Growth Fund)
(Cost $5,507,774) $5,573,838
------------
------------------------------------------------------------
Mid Cap Growth Fund
------------------------------------------------------------
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
COMMON STOCKS - 99.10%
Advertising - 0.84%
Lamar Advertising Co. 3,250 $143,203
Young & Rubicam, Inc. 5,400 300,712
------------
443,915
Automobiles - 0.64%
General Motors Corp. 3,550 341,909
------------
Banks - 0.52%
Northern Trust Corp. 4,300 275,738
------------
Biotechnology - 6.99%
Celgene Corp. 11,575 544,748
Chiron Corp. 5,750 260,188
Cor Therapeutics, Inc. 5,650 430,459
Human Genome Sciences, Inc. 3,950 302,422
Idec Pharmaceuticals Corp. 3,350 214,400
Medarex, Inc. 4,050 214,650
Medimmune, Inc.* 2,700 431,831
Millennium Pharmaceuticals 6,240 495,300
Protein Design Labs, Inc. 4,500 456,750
Sepracor, Inc.* 3,800 349,600
------------
3,700,348
Business Services - 1.59%
CSG Systems International, Inc.* 3,550 163,744
Paychex, Inc. 9,850 518,356
Robert Half International, Inc. 2,600 158,925
------------
841,025
Communications Equipment - 7.61%
Brocade Communications Systems, Inc. 5,050 626,200
Ciena Corp. 3,800 469,775
Comverse Technology, Inc. 5,800 517,288
Covad Communications Group, Inc. 5,550 154,013
Crown Castle International Corp. 7,600 291,650
E Tek Dynamics, Inc. 1,600 327,600
Entrust Technologies, Inc. 1,700 83,512
Extreme Networks, Inc. 3,850 221,856
Go2net 4,600 273,700
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Communications Equipment - cont'd.
Metromedia Fiber Network, Inc. 7,500 $231,563
Real Networks, Inc. 2,600 123,825
Redback Networks, Inc. 4,200 333,375
Scient Corp. 3,400 183,600
Verio, Inc. 1,700 63,856
Visual Networks, Inc. 3,350 130,650
------------
4,032,463
Computers & Peripherals - 3.13%
Apple Computer 1,550 192,297
Doubleclick, Inc. 5,050 383,169
Network Appliance, Inc. 12,600 931,612
Proxicom, Inc. 4,400 150,425
------------
1,657,503
Diversified Telecommunication - 5.03%
Allegiance Telecom, Inc. 5,750 406,812
Coflexip 3,000 152,250
Colt Telecommunications Group Plc 2,550 435,412
ITC Deltacom 3,850 126,569
McLeodUSA, Inc. 18,750 468,750
NTL, Inc. 3,400 260,100
RCN Corp. 3,400 97,325
Time Warner Telecommunications., Inc. 1,550 84,863
Viatel, Inc. 2,400 91,800
Voicestream Wireless Crop. 1,900 188,100
Western Wireless Corp. 4,900 243,469
WinStar Communications, Inc. 2,800 111,650
------------
2,667,100
Electric Utilities - 0.38%
Citizens Utilities Co. 12,400 199,175
------------
Electronic Equipment & Instruments -
8.25%
AT & T CDA, Inc. 7,000 298,375
Applied Micro Circuits Corp. 4,700 605,712
Flextronics International, Ltd.* 8,200 576,050
Jabil Circuit, Inc. 3,100 126,906
MIPS Technologies, Inc. 5,100 147,263
Molex, Inc. 9,750 535,641
PE Corp. 5,900 354,000
RF Micro Devices, Inc. 4,950 515,109
Sanmina Corp. * 6,400 384,400
SDL, Inc. 4,250 828,750
------------
4,372,206
Energy Equipment & Services - 8.57%
BJ Services Company 8,600 604,150
Cooper Cameron Corp. 9,000 675,000
Diamond Offshore Drilling, Inc. 3,900 157,219
Global Industries, Inc. 6,000 85,500
Global Marine, Inc. 8,350 200,400
Grant Pride, Inc. 10,950 210,787
Nabors Industries, Inc. 11,050 435,784
Noble Drilling Corp. 12,750 509,203
Santa Fe International Corp. 9,100 312,813
Smith International, Inc. 8,550 649,800
</TABLE>
The accompanying notes are an integral part of the financial statements.
51
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Energy Equipment & Services - cont'd.
Transocean Sedco Forex, Inc. 3,850 $180,950
Varco International, Inc. 5,900 73,750
Weatherford International, Inc. 10,950 444,844
------------
4,540,200
Financial Services - 2.82%
Capital One Financial Corp 2,000 87,500
Edwards, A.G. Inc. 2,700 101,588
Knight Trimark Group, Inc. 6,500 244,969
Legg Mason, Inc. 2,850 107,766
Lehman Brothers Holdings, Inc. 500 41,031
T. Rowe Price & Associates, Inc. 3,100 118,187
Sei Investments Co. 1,450 173,094
Waddell & Reed Financial, Inc. Cl. A 17,442 464,393
Waddell & Reed Financial, Inc. Cl. B 6,429 154,698
------------
1,493,226
Healthcare Equipment & Supplies - 1.50%
Affymetrix, Inc. 2,725 368,045
Allergan, Inc. 7,250 426,844
------------
794,889
Hotels, Restaurants & Leisure - 2.66%
Gemstar International Group, Ltd. 8,350 386,187
Harrah's Entertainment, Inc. 26,650 547,991
MGM Grand, Inc. 16,150 476,425
------------
1,410,603
Internet & Catalog Retail - 0.24%
CMG Information Services, Inc. 1,800 128,250
------------
I T Consulting & Services - 1.70%
Computer Sciences Corp. 3,550 289,547
Marchfirst, Inc. 3,100 66,069
Safeguard Scientifics, Inc. 5,100 212,925
Sungard Data Systems, Inc. 9,650 333,528
------------
902,069
Machinery - 0.12%
Parker Hannafin Corp. 1,400 65,100
------------
Media - 8.73%
AMFM, Inc. 6,850 454,669
Cablevision Systems Corp. 4,300 291,056
Citadel Communications Corp. 4,900 191,406
Echostar Communications Corp. 17,100 1,089,056
Entercom Communications Corp. 6,450 274,125
Hispanic Broadcasting Corp. 3,050 308,241
New York Times Co. 6,000 247,125
Omnicom Group 3,500 318,719
TMP Worldwide, Inc. 5,650 369,369
USA Networks, Inc. 13,150 302,450
Valassis Communications, Inc. 8,650 294,641
Westwood One, Inc. 6,000 212,250
WPP Group 17,000 273,945
------------
4,627,052
Oil & Gas - 2.28%
Anadarko Pete Co. 6,000 260,625
Apache Corp. 11,250 544,922
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Oil & Gas - cont'd.
Kerr McGee Corp. 6,550 $338,962
Talisman Energy, Inc. 2,050 61,244
------------
1,205,753
Personal Products - 0.25%
Estee Lauder Companies, Inc. 3,000 132,375
------------
Pharmaceuticals - 5.91%
Abgenix, Inc. 4,500 403,031
Alexion Pharmaceuticals, Inc. 1,500 66,937
Alza Corp. 8,950 394,359
Forest Laboratories, Inc.* 12,550 1,054,984
Imclone Systems, Inc. 5,050 459,550
Immunex Corp. 9,950 391,781
Inhale Therapeutic Systems 4,750 293,906
Ivax corp. 2,400 65,700
------------
3,130,248
Road & Rail - 0.76%
Kansas City Southern Industries, Inc. 5,600 402,500
------------
Semiconductor Equipment & Products - 11.25%
Altera Corp.* 4,800 490,800
Conexant Systems, Inc.* 4,450 266,444
KLA Tencor Corp. 4,950 370,631
Linear Technology Corp. 6,300 359,888
LSI Logic Corp. 10,600 662,500
Maxim Integrated Products, Inc.* 9,300 602,756
Microchip technology, Inc. 4,650 288,591
Novellus Systems, Inc. 2,600 173,387
PMC Sierra, Inc. 5,150 988,156
Teradyne, Inc. 3,300 363,000
Transwitch Corp. 4,600 405,087
Vitesse Semiconductor Corp.* 5,500 374,344
Xilinx, Inc.* 8,450 618,962
------------
5,964,546
Software - 15.42%
I2 Technologies, Inc. 650 84,013
Amdocs Limited* 8,900 602,419
Art Technology Group, Inc. 5,700 346,275
Aspect Development, Inc. 6,600 456,225
Bea Systems, Inc. 9,400 453,550
Broadvision, Inc. 10,200 448,162
Citrix Systems, Inc. 6,850 418,278
Edwards, J.D. & Company 3,900 71,175
Electrinics For Imaging, Inc. 3,500 182,875
Exodus Communications, Inc.* 6,600 583,688
Infospace, Inc. 1,200 86,175
Inktomi Corp. 3,200 492,600
Internap Network Services Corp. 6,300 242,550
Intertrust Technologies Corp. 650 14,950
Intuit 5,800 208,438
Mercury Interactive Corp. 7,150 642,500
Metasolv Software, Inc. 2,500 85,313
Peregrine Systems, Inc. 9,750 234,609
Portal Software, Inc. 5,950 272,956
</TABLE>
The accompanying notes are an integral part of the financial statements.
52
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Software - cont'd.
Sapient Corp. 2,100 $166,294
Siebel Systems, Inc. 6,700 823,263
Symantec Corp. 5,650 352,772
Verisign, Inc. 3,500 487,813
Viant Corp. 1,700 39,100
Vignette Corp. 5,850 282,897
Vitria Technology, Inc. 2,400 88,650
------------
8,167,540
Telecommunications - 1.91%
Best Buy Company, Inc. 2,900 234,175
Circuit City Stores, Inc. 8,000 470,500
Tandy Corp. 5,350 304,950
------------
1,009,625
TOTAL COMMON STOCKS
(Cost $57,902,978) $52,505,358
------------
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
SHORT TERM INVESTMENTS - 0.90%
Repurchase Agreement with State Street Bank & Trust Co.
dated 04/28/00 at 4.75%, to be repurchased at $474,184
on 05/01/00, collateralized by $470,000 U.S. Treasury
Notes, 5.75% due 04/30/00 (valued at $485,557 including
interest) (Cost $474,000) $474,000 $474,000
------------
TOTAL INVESTMENTS
(Mid Cap Growth Fund) (Cost $58,376,978) $52,979,358
------------
-------------------------------------------------------------------------------
Large Cap Growth Fund
-------------------------------------------------------------------------------
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
COMMON STOCKS - 90.79%
Automotive - 1.54%
General Motors Corporation* 7,450 $717,528
Harley Davidson, Inc.* 4,681 186,362
------------
903,890
Banking - 0.97%
Fifth Third Bancorp 9,079 573,112
------------
Biotechnology - 1.31%
Amgen, Inc.* 8,461 473,816
MedImmune, Inc.* 1,050 167,934
Perkin Elmer Corporation* 1,625 134,063
------------
775,813
Commercial Services & Supplies - 1.80%
Automatic Data Processing, Inc. 9,692 521,551
Cendant Corp.* 12,050 186,022
Devry, Inc.* 14,782 351,996
------------
1,059,569
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Communications Equipment - 9.26%
Ciena Corp.* 2,350 $290,519
Cisco Systems, Inc.* 29,718 2,060,293
Comverse Technology, Inc.* 5,300 472,694
E-Tek Dynamics, Inc.* 1,750 358,312
JDS Uniphase Corporation* 14,525 1,506,061
Redback Networks, Inc.* 3,000 238,125
Sycamore Networks, Inc.* 2,250 176,625
Tellabs, Inc.* 6,225 341,208
------------
5,443,837
Computers & Peripherals - 3.86%
Dell Computer Corp.* 8,175 409,772
EMC Corporation* 6,520 905,873
Juniper Networks, Inc.* 2,000 425,375
Network Appliance, Inc.* 2,025 149,723
Sun Microsystems, Inc.* 4,136 380,254
------------
2,270,997
Diversified - 0.51%
Berkshire Hathaway, Inc.* 156 298,916
------------
Diversified Financial - 2.46%
American Express Company 1,700 255,106
Citigroup, Inc. 17,418 1,035,282
Schwab, Charles Corp.* 3,544 157,708
------------
1,448,096
Electrical Equipment - 4.34%
Comdisco, Inc.* 7,025 218,214
Corning, Inc.* 4,475 883,813
Nortel Networks Corporation 6,425 727,631
RF Micro Devices, Inc.* 6,925 720,633
------------
2,550,291
Electronic Equipment - 4.05%
Applied Micro Circuits Corporation* 5,275 679,816
Broadcom Corp.* 3,450 594,694
Jabil Circuit, Inc.* 5,825 238,461
Perkin Elmer Corporation* 6,339 380,340
SDL, Inc.* 1,775 346,125
Solectron Corporation* 3,050 142,778
------------
2,382,214
Food & Drug Retailing - 0.65%
Walgreen Co.* 13,625 383,203
------------
Health Care Equipment & Supplies - 3.07%
Affymetrix, Inc. 1,100 148,569
Baxter International, Inc. 12,525 815,691
Guidant Corporation* 14,675 841,978
------------
1,806,238
Household Products - 0.62%
Colgate Palmolive Co. 6,339 362,115
------------
Insurance - 1.02%
American International Group, Inc. 5,465 599,442
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
53
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Industrial Conglomerates - 5.54%
General Electric Company 11,863 $1,865,457
Tyco International, Ltd. 30,343 1,393,882
-------------
3,259,339
Lodging & Restaurants - 0.59%
Mcdonalds Corporation 9,100 346,938
-------------
Media - 10.95%
AMFM, Inc.* 6,463 428,982
A T & T Corp-Liberty Media Group* 20,650 1,031,209
Comcast Corporation* 16,500 661,031
Disney, Walt Company 9,075 393,061
Echostar Communications Corp.* 10,346 658,911
Omnicom Group 3,025 275,464
Time Warner, Inc. 19,715 1,773,118
USA Networks, Inc.* 12,850 295,550
Viacom, Inc.* 16,950 921,656
-------------
6,438,982
Motor Vehicle Parts - 0.37%
Danaher Corporation 3,799 217,018
-------------
Pharmaceuticals - 7.79%
American Home Products Corp. 2,925 164,348
Bristol-Myers Squibb Company 5,927 310,797
Genentech, Inc.* 3,750 438,750
Idec Pharmaceuticals Corp.* 1,150 73,600
Lilly, Eli & Co.* 7,800 603,037
Merck & Company, Inc. 5,275 366,612
Pfizer, Inc.* 19,700 829,862
Schering Plough Corporation* 9,325 375,914
Warner Lambert Company 13,135 1,494,927
-------------
4,657,847
Personal Products - 0.24%
Gillette Company 3,802 140,674
-------------
Retail Trade - 4.33%
Costco Wholesale Corp.* 21,750 1,175,859
Home Depot, Inc. 13,194 739,689
Kohl's Corporation* 13,206 633,888
-------------
2,549,436
Semiconductor Equipment & Products - 7.70%
Analog Devices, Inc.* 4,225 324,533
Intel Corporation* 14,202 1,800,991
Maxim Integrated Products, Inc.* 5,825 377,533
Texas Instruments, Inc. 9,325 1,518,809
Vitesse Semiconductor Corporation* 7,475 508,767
-------------
4,530,633
Software - 8.36%
7-24 Solutions, Inc.* 950 47,975
Amdocs Limited* 1,400 94,763
Ariba, Inc.* 3,600 267,075
Business Objects SA* 2,150 210,431
Foundry Networks, Inc.* 1,300 118,300
Inktomi Corporation* 5,525 850,505
Mercury Interactive Corp.* 3,950 355,500
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Software - cont'd.
Momentum Business Applications* 22 $165
Oracle Corp.* 7,625 609,523
Siebel Systems, Inc.* 3,050 374,769
Tibco Software, Inc.* 1,600 142,500
Verisign, Inc.* 5,050 703,844
Veritas Software Corporation* 5,643 605,300
Yahoo, Inc.* 4,092 532,983
-------------
4,913,633
Telecommunications - 9.33%
Exodus Communications, Inc.* 1,825 161,397
Level 3 Communications, Inc.* 10,025 892,225
Nextel Communications, Inc.* 6,500 711,344
Nokia Corporation 32,791 1,864,988
Sprint Corporation* 7,575 416,625
Teligent, Inc.* 2,725 102,188
Vodaphone Airtouch PLC 12,120 569,640
VoiceStream Wireless Corporation* 4,490 444,510
Williams Communications Group* 4,225 156,324
Winstar Communications, Inc.* 4,237 168,950
-------------
5,488,192
TOTAL COMMON STOCKS
(Cost $44,780,779) $53,400,425
-------------
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
SHORT TERM INVESTMENTS - 0.00%
SSGA Money Market Fund $1,000 $1,000
-------------
REPURCHASE AGREEMENT - 9.21%
Repurchase Agreement with State Street Bank & Trust
Co. dated 04/28/00 at 4.75%, to be repurchased at
$5,419,109 on 05/01/00, collateralized by $5,680,000
U.S. Treasury Notes, 5.625% due 05/15/08 (valued at
$5,673,212 including interest) (Cost $5,417,000) 5,417,000 $5,417,000
-------------
TOTAL INVESTMENTS
(Large Cap Growth Fund) (Cost $50,198,779) $58,818,425
-------------
-----------------------------------------------------------------------------
Tax-Sensitive Equity Fund
-----------------------------------------------------------------------------
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
COMMON STOCKS - 100.00%
Aerospace & Defense - 3.86%
General Motors Corporation 2,100 $202,256
-------------
Apparel & Textiles - 3.12%
Jones Apparel Group, Inc. 5,500 163,281
-------------
Banking - 3.48%
Chase Manhattan Corp. 1,300 93,681
Fleet Boston Financial Corp. 2,500 88,594
-------------
182,275
</TABLE>
The accompanying notes are an integral part of the financial statements.
54
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Business Services - 2.37%
Shared Medi Cal System 3,000 $124,313
------------
Computers & Business Equipment - 16.20%
Hewlett Packard Co. 1,800 243,000
Sun Microsystems , Inc. 2,600 239,038
SCI Systems, Inc. 5,800 308,850
Unisys Corporation 2,500 57,969
------------
848,857
Consumer Durables - 1.84%
Leggett & Platt, Inc. 4,500 96,188
------------
Drugs & Health Care - 13.92%
Abbott Laboratories 3,000 115,312
Amgen, Inc. 3,500 196,000
Bristol Myers Squibb Co. 1,000 52,437
Merck & Company, Inc. 1,300 90,350
Schering Plough Corp. 2,700 108,844
Watson Pharmaceuticals, Inc. 3,700 166,269
------------
729,212
Electrical Equipment - 4.38%
Tyco International, Ltd. 5,000 229,688
------------
Financial Services - 6.73%
Citigroup, Inc. 2,150 127,791
Federal National Mortgage Assn. 2,200 132,687
Morgan Stanley Dean Witter 1,200 92,100
------------
352,578
Food & Drug Distribution - 3.48%
CVS Corporation 4,200 182,700
------------
Industrial Conglomerates - 6.72%
Ingersoll Rand Co. 2,200 103,262
United Technologies Corp. 4,000 248,750
------------
352,012
Infrastructure Software - 6.96%
BMC Software, Inc. 3,500 163,844
Computer Associates International, Inc. 3,600 200,925
------------
364,769
Insurance - 2.47%
Ambac Financial Group, Inc. 2,700 129,600
------------
International Oil - 7.26%
BP Amoco Plc 3,500 178,500
Exxon Mobil Corp. 2,600 201,987
------------
380,487
Peripherals - 4.72%
American Power Conversion Corp. 7,000 247,187
------------
Real Estate - 2.08%
Boston Properties, Inc. 1,700 59,287
Liberty Property 2,000 49,500
------------
108,787
Retail Trade - 0.89%
Target Corporation 700 46,594
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Semiconductors - 5.56%
Intel corp. 2,300 $291,669
-----------
Telephone - 3.96%
Bell Atlantic 3,500 207,375
-----------
TOTAL INVESTMENTS (Tax-Sensitive Equity Fund) (Cost
$3,923,025) $5,239,828
-----------
------------------------------------------------------------------------
Growth and Income Fund
------------------------------------------------------------------------
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
COMMON STOCKS - 99.30%
Aerospace & Defense - 2.02%
General Motors Corp. 18,800 $1,810,675
Honeywell International, Inc. 37,100 2,077,600
United Technologies Corp. 32,200 2,002,438
-----------
5,890,713
Air Travel - 0.53%
AMR Corporation 44,800 1,526,000
-----------
Banks - 5.02%
The Chase Manhattan Corp. 26,600 1,916,862
Citigroup, Inc. 120,600 7,168,163
U.S. Bancorp 131,500 2,671,094
Wachovia Corp. 46,000 2,883,625
-----------
14,639,744
Beverages - 2.04%
Anheuser-Busch Companies, Inc. 39,900 2,815,444
Pepsico, Inc. 85,400 3,133,112
-----------
5,948,556
Business Services - 2.53%
Automatic Data Processing, Inc. 62,500 3,363,281
First Data Corp. 64,300 3,130,606
Sabre Holdings Corp. 25,174 879,517
-----------
7,373,404
Chemicals - 1.35%
The Dow Chemical Co. 11,900 1,344,700
E.I. Du Pont de Nemours & Co. 54,500 2,585,344
-----------
3,930,044
Computers & Business Equipment - 8.01%
Cisco Systems, Inc. 173,000 11,993,766
International Business Machines Corp. 53,800 6,005,425
Lucent Technologies 86,000 5,348,125
-----------
23,347,316
Computers & Peripherals - 3.16%
Dell Computer Corp. 10,600 531,325
EMC Corp. 24,500 3,403,969
Hewlett-Packard Company 28,800 3,888,000
Network Solutions, Inc. 9,400 1,391,200
-----------
9,214,494
Drugs & Health Care - 12.02%
Abbott Laboratories 83,300 3,201,844
American Home Products Corp. 98,600 5,540,087
</TABLE>
The accompanying notes are an integral part of the financial statements.
55
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Drugs & Health Care - cont'd.
Baxter International, Inc. 44,200 $2,878,525
Bristol-Myers Squibb Co. 45,100 2,364,931
Cardinal Health, Inc. 38,400 2,114,400
Columbia/HCA Healthcare Corp. 42,600 1,211,438
Johnson & Johnson 34,600 2,854,500
Merck & Company, Inc. 54,600 3,794,700
Pfizer, Inc. 43,400 1,828,225
Pharmacia Corp. 96,437 4,815,823
Warner-Lambert Co. 38,800 4,415,925
------------
35,020,398
Electronic Components - 9.48%
Analog Devices, Inc. 56,800 4,362,950
Intel Corp. 80,000 10,145,000
Micron Technology, Inc. 30,000 4,177,500
Motorola, Inc. 32,600 3,881,437
Texas Instruments, Inc. 31,000 5,049,125
------------
27,616,012
Electronic Equipment - 5.64%
General Electric Co. 75,400 11,856,650
Solectron Corp. 29,800 1,395,013
Tyco International Ltd. 69,300 3,183,469
------------
16,435,132
Financial Services - 3.45%
Associates First Capital Corp. 128,200 2,844,438
Federal National Mortgage Association 54,200 3,268,937
Merrill Lynch & Co., Inc. 38,600 3,934,787
------------
10,048,162
Forest Products - 1.32%
International Paper Co. 61,200 2,249,100
Minnesota Mining & Manufacturing Co. 18,400 1,591,600
------------
3,840,700
Hotels & Restaurants - 1.03%
McDonald's Corp. 78,500 2,992,812
------------
Household Products - 3.93%
Colgate Palmolive Co. 23,500 1,342,438
Corning, Inc. 16,400 3,239,000
Gillette Company 31,600 1,169,200
Kimberly Clark Corp. 49,800 2,891,512
Procter & Gamble Co. 47,200 2,814,300
------------
11,456,450
Industrial Components - 0.99%
Caterpillar, Inc. 32,300 1,273,831
Illinois Tool Works, Inc. 25,100 1,607,969
------------
2,881,800
Insurance - 3.49%
American International Group, Inc. 42,625 4,675,430
Marsh & McLennan Companies, Inc. 55,800 5,499,787
------------
10,175,217
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Internet Services - 1.20%
America Online, Inc. 50,300 $3,008,569
e-Bay, Inc. 3,100 493,481
------------
3,502,050
I T Consulting Services - 1.26%
Computer Sciences Corp. 37,900 3,091,219
Electronic Data Systems Corp. 8,500 584,375
------------
3,675,594
Media - 4.02%
AT & T Corp. 53,000 2,646,688
CBS Corp. 22,700 1,333,625
The Walt Disney Co. 63,400 2,746,012
Gannett, Inc. 54,900 3,506,737
Time Warner, Inc. 16,400 1,474,975
------------
129,800 11,708,037
Motor Vehicles - 0.57%
Ford Motor Company 30,300 1,657,031
------------
Non-Ferrous Metals - 0.93%
Aluminum Company of America 41,700 2,705,287
------------
Petroleum - 5.70%
Chevron Corp. 36,900 3,141,113
ExxonMobil Corp. 96,000 7,458,000
Royal Dutch Petroleum Co. 83,600 4,796,550
UNOCAL Corp. 37,900 1,224,644
------------
16,620,307
Petroleum Services - 1.59%
Schlumberger, Ltd. 60,500 4,632,031
------------
Retail Trade - 4.62%
Staples, Inc. 55,000 1,048,438
Target Corp. 78,200 5,205,188
Wal-Mart Stores, Inc. 130,100 7,204,287
------------
13,457,913
Software - 4.42%
Microsoft Corp. 140,300 9,785,925
Oracle Corp. 38,800 3,101,575
------------
12,887,500
Telecommunications - 7.74%
AT & T Corp. 92,400 4,313,925
Bell Atlantic Corp. 85,892 5,089,101
MCI WorldCom, Inc. 110,850 5,036,747
SBC Communications, Inc. 113,400 4,968,337
Sprint Corp. 57,000 3,135,000
------------
22,543,110
Utilities-Electric - 1.24%
Duke Energy Do. 53,200 3,059,000
Unicom Corp. 14,200 564,450
------------
3,623,450
TOTAL COMMON STOCKS
(Cost $175,742,003) $289,349,264
------------
PREFERRED STOCK - 0.43%
Chemicals - 0.35%
Monsanto Corp.(Cost $1,116,000) 27,900 $ 1,262,475
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
56
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
REPURCHASE AGREEMENT - 0.27%
Repurchase Agreement with State Paine Webber dated
04/28/00 at 5.71%, to be repurchased at $796,373 on
05/01/00, collateralized by $830,000 U.S. Treasury
Notes, 5.50% due 02/28/03 (valued at $814,370,
including interest) (Cost $796,000) $796,000 $796,000
------------
TOTAL INVESTMENTS
(Growth & Income Fund) (Cost $177,654,003) $291,407,739
------------
---------------------------------------------------------------------------
Equity-Income Fund
---------------------------------------------------------------------------
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
COMMON STOCKS - 100.00%
Banking - 2.73%
First Union Corp. 23,400 $745,875
Wells Fargo & Co. 27,150 1,114,847
------------
1,860,722
Business Services - 2.11%
Pitney Bowes, Inc. 35,300 1,442,888
------------
Chemicals - 1.87%
E.I. Du Pont De Nemours & Co. 26,900 1,276,069
------------
Computer Software - 2.23%
Microsoft Corp. 21,800 1,520,550
------------
Computers & Business Equipment - 2.01%
International Business Machines 12,300 1,372,988
------------
Diversified Financial - 4.89%
Citigroup, Inc. 35,700 2,121,919
Merrill Lynch & Co., Inc. 11,900 1,213,056
------------
3,334,975
Drugs & Health Care - 22.51%
American Home Products Corp. 73,700 4,141,019
Baxter International, Inc. 38,800 2,526,850
Bristol Myers Squibb Co. 46,900 2,459,319
Johnson & Johnson 14,900 1,229,250
Pharmacia Corp. 100,138 5,000,641
------------
15,357,079
Electric Utilities - 1.64%
Duke Energy Co. 19,500 1,121,250
------------
Food & Beverages - 1.49%
General Mills, Inc. 28,000 1,018,500
------------
Household Products - 8.37%
Gillette Co. 48,300 1,787,100
Kimberly-Clark Corp. 67,650 3,927,928
------------
5,715,028
Insurance - 6.11%
Marsh & McLennan Cos., Inc. 42,300 4,169,194
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
International Oil - 8.33%
Chevron Corp. 29,100 $2,477,137
Exxon Mobil Corp. 21,000 1,631,437
Texaco, Inc. 31,800 1,574,100
------------
5,682,674
Multi Industry - 7.77%
General Electric 13,400 2,107,150
Minnesota Mining & Manufacturing Co. 36,900 3,191,850
------------
5,299,000
Multiline Retail - 1.87%
Walmart Stores, Inc. 23,000 1,273,625
------------
Paper - 4.30%
International Paper Co. 79,807 2,932,907
------------
Specialty Retail - 3.36%
The Limited, Inc. 50,700 2,291,006
------------
Telephone - 18.41%
American Telephone & Telegraph Corp. 16,200 756,337
Bell Atlantic Corp. 85,400 5,059,950
SBC Communications, Inc. 81,754 3,581,847
U.S. West, Inc. 44,500 3,167,844
------------
12,565,978
TOTAL INVESTMENTS
(Equity-Income Fund) (Cost $66,304,456) $68,234,433
------------
---------------------------------------------------------
Balanced Fund
---------------------------------------------------------
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
COMMON STOCKS - 65.98%
Aerospace & Defense - 2.31%
Boeing Company 16,000 $635,000
Honeywell International, Inc. 11,800 660,800
------------
1,295,800
Banks - 5.78%
Bank America Corp. 11,200 548,800
Bank of New York, Inc. 17,300 710,381
Chase Manhattan Corp. 8,400 605,325
Morgan, J.P. & Co., Inc. 5,700 731,738
Wells Fargo & Company 15,800 648,788
------------
3,245,032
Beverages - 0.93%
Anheuser Busch Companies, Inc. 7,400 522,162
------------
Communications Equipment - 4.37%
Cisco Systems, Inc. 10,100 700,214
Crown Castle International Corp. 12,100 464,337
General Motors Corp. 7,600 731,975
Motorola, Inc. 4,700 559,594
------------
2,456,120
Computers & Peripherals - 1.26%
EMC Corp. 5,100 708,581
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
57
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Containers & Packaging - 0.74%
Temple Inland, Inc. 8,300 $416,037
------------
Diversified Financial - 2.59%
Citigroup, Inc. 12,900 766,744
Morgan Stanley Dean Witter 9,000 690,750
------------
1,457,494
Diversified Telecommunication - 4.67%
Bellsouth Corp. 14,100 686,494
Cable & Wireless Pub. Ltd. Co. 12,600 622,125
Qwest Communications Int'l., Inc. 6,100 264,587
SBC Communications., Inc. 15,800 692,238
U.S. West, Inc. 5,000 355,937
------------
2,621,381
Electric Utilities - 0.74%
Unicom Corp. 10,400 413,400
------------
Electrical Equipment - 1.11%
Nortel Networks Corp. 5,500 622,875
------------
Energy Equipment & Services - 1.05%
Schlumberger, Ltd. 7,700 589,531
------------
Hotels, Restaurants & Leisure - 1.22%
Harrah's Entertainment, Inc. 33,300 684,731
------------
Household Durables - 1.05%
Gemstar International Group, Ltd. 12,800 592,000
------------
Household Products - 1.02%
Colgate Palmolive Co. 10,000 571,250
------------
Industrial Conglomerates - 2.35%
General Electric Co 4,000 629,000
Textron, Inc. 11,200 693,700
------------
1,322,700
Insurance - 1.18%
Allmerica Financial Corp. 12,200 660,325
------------
Internet Software & Services - 1.10%
America Online, Inc. 10,300 616,069
------------
Media - 5.05%
American Telephone & Telegraph Corp. 12,100 604,244
Clear Channel Communications 10,700 770,400
Echostar Communications Corp. 11,500 732,405
Omnicom Group 8,000 728,500
------------
2,835,549
Multiline Retail - 2.03%
Target Corp. 9,600 639,000
Wal-Mart Stores, Inc. 9,000 498,375
------------
1,137,375
Oil & Gas - 4.14%
Apache Corp. 13,900 673,281
Coastal Corp. 6,500 326,219
ExxonMobil Corp. 9,300 722,494
Unocal Corp. 18,700 604,244
------------
2,326,238
Personal Products - 1.07%
Gillette Company 16,300 603,100
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Pharmaceuticals - 8.10%
American Home Products 11,300 $634,919
Forest Labs, Inc. 8,000 672,500
Genentech, Inc. 4,800 561,600
Johnson & Johnson 7,200 594,000
Merck & Co., Inc. 11,300 785,350
Pharmacia Corp. 12,400 619,225
Warner Lambert Co. 6000 682,875
------------
4,550,469
Road & Rail - 1.10%
Kansas City Southern Industries, Inc. 8,600 618,125
------------
Semiconductor Equipment & Products - 5.25%
Intel Corp. 5,700 722,831
KLA Tencor Corp. 9,700 726,288
Maxim Integrated Products, Inc. 12,100 784,231
Texas Instruments, Inc. 4,400 716,650
------------
2,950,000
Software - 2.97%
Computer Associates Int'l., Inc. 12,000 669,750
12 Technologies, Inc. 3,500 452,375
SAP Aktiengesellschaft 11,100 545,288
------------
1,667,413
Specialty Retail - 2.80%
Circuit Cities Stores, Inc. 12,600 741,038
Tandy Corp. 14,600 832,200
------------
1,573,238
TOTAL COMMON STOCKS
(Cost $35,763,920) $37,056,995
------------
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
CORPORATE BONDS - 14.45%
Electric & Gas Utilities - 7.82%
Commonwealth Edison Co., 8.375% due 09/15/22 $1,000,000 $975,086
Consumers Energy Co., 7.375% due 09/15/23 500,000 436,296
Indiana & Michigan Power Co., 8.50% due 12/15/22 1,000,000 995,380
Pennsylvania Power Co., 8.50% due 07/15/22 1,000,000 965,150
Texas Electric Utilities Co., 8.50% due 08/01/24 1,000,000 1,016,890
------------
4,388,802
Consumer Services - 1.65%
Hertz Corporation, 6.50% due 05/15/06 1,000,000 927,820
------------
Multiline Retail - 1.79%
Target Corp.,
7.50% due 02/15/05 1,000,000 1,004,380
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
58
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
Telecommunications - 3.19%
Metronet Communications Corp., Zero Coupon due
06/15/08 $1,000,000 $797,980
Worldcom, Inc.
7.75% due 04/01/07 1,000,000 995,630
------------
1,793,610
TOTAL CORPORATE BONDS (Cost $8,348,110) $8,114,612
------------
U.S. TREASURY OBLIGATIONS - 4.51%
U.S. Treasury Notes - 4.51%
5.875% due 02/15/04 $500,000 $488,280
7.25% due 05/15/04 2,000,000 2,044,680
------------
2,532,960
TOTAL U.S. TREASURY OBLIGATIONS (Cost $2,604,627) $2,532,960
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 9.81%
Federal Home Loan Mortgage Corporation - 6.13%
6.45% due 04/29/09 $1,600,000 $1,476,256
6.645% due 03/10/04 1,000,000 978,692
6.875% due 01/15/05 1,000,000 985,620
------------
3,440,568
Federal National Mortgage Association - 1.77%
7.255% due 01/15/10 1,000,000 997,030
------------
Resolution Funding FBE Strips - 1.91%
Zero Coupon due 04/15/09 2,000,000 1,073,440
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $5,699,227) $5,511,038
------------
SHORT TERM INVESTMENTS - 0.00%
SSGA Money Market Fund $1,000 $1,000
------------
REPURCHASE AGREEMENT - 5.25%
Repurchase Agreement with State Street Bank &
Trust Co. dated 04/28/00 at 4.75%, to be
repurchased at $2,952,149 on 05/01/00,
collateralized by $3,095,000 U.S. Treasury
Notes, 5.625% due 05/15/08 (valued at
$3,091,308, including interest)
(Cost $2,951,000) $2,951,000 $2,951,000
------------
TOTAL INVESTMENTS
(Balanced Fund) (Cost $55,367,884) $56,167,605
------------
-----------------------------------------------------------------------
Strategic Income Fund
-----------------------------------------------------------------------
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
CORPORATE BONDS - 33.93%
Business Services - 2.61%
CSC Holdings, Inc., 10.50% due 05/15/16 $500,000 $541,250
Iron Mountain, Inc., 10.125% due 10/01/06 500,000 482,500
------------
1,023,750
</TABLE>
<TABLE>
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
Chemical Products - 1.00%
Lyondell Chemical Co., 9.875% due 05/01/07 $400,000 $393,000
------------
Crude Petroleum & Natural Gas - 2.25%
Bellwether Exploration Co., 10.875% due 04/01/07 250,000 225,000
Pennzoil Company,
10.25% due 11/01/05 500,000 510,350
United Refining Co., 10.75% due 06/15/07 250,000 150,000
------------
885,350
Electronics - 0.01%
Breed Technologies, Inc.,/2/ 9.25% due 04/15/08 500,000 4,375
------------
Energy & Utilities - 0.31%
Costilla Energy, Inc.,/2/ 10.25% due 10/01/06 500,000 120,000
------------
Financial Services - 1.82%
Ford Motor Credit Company, 7.375% due 10/28/09 148,000 143,060
Merrill Lynch & Co., Inc., 6.00% due 11/15/04 140,000 131,947
Merrill Lynch & Co., Inc., 5.97% due 09/11/00 370,000 249,884
Paine Webber Group, Inc., 7.625% due 12/01/09 200,000 189,528
------------
714,419
Food & Beverages - 0.56%
Agrilink Foods, Inc.
11.875% due 11/01/08 250,000 221,250
------------
Hotels & Restaurants - 0.61%
Prime Hospitality Corp.,
9.75% due 04/01/07 250,000 238,125
------------
Industrials - 4.11%
American Standard, Inc.,
7.375% due 02/01/08 400,000 366,000
Foamex, L.P.,
9.875% due 05/15/07 375,000 307,500
P&L Coal Holdings Corp.,
8.875% due 05/15/08 250,000 225,000
Polymer Group, Inc.,
8.75% due 03/01/08 150,000 134,625
9.00% due 07/01/07 190,000 171,000
Raytheon Company,
6.15% due 11/01/08 175,000 151,209
Stellex Industries, Inc.,
9.50% due 11/01/07 250,000 137,500
Tembec Industries, Inc.,
8.625% due 06/30/09 125,000 121,250
------------
1,614,084
</TABLE>
The accompanying notes are an integral part of the financial statements.
59
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
Leisure Time - 1.79%
Hollywood Casino, Shreveport,
13.0% due 08/01/06 $250,000 $263,750
Isle of Capri Casinos, Inc.,
8.75% due 04/15/09 250,000 226,250
Mohegan Tribal Gaming Authority,
8.75% due 01/01/09 225,000 213,750
------------
703,750
Other - 6.31%
Aztar Corp.,
8.875% due 05/15/07 250,000 233,125
Cendant Corp.,
7.75% due 12/01/03 100,000 97,454
Crown Castle International Corp.,
Zero Coupon due 05/15/11 300,000 177,000
Countrywide Funding Corp.,
6.25% due 04/15/09 148,000 128,830
Grey Wolf, Inc.,
8.875% due 07/01/07 250,000 230,000
Kroger Company,
8.05% due 02/01/10 73,000 71,638
Pennhall International Inc.,
12.0% due 08/01/06 250,000 245,000
Spectrasite Holdings, Inc.,
12.875% due 03/15/10 500,000 257,500
Sprint Cap Corp.,
5.70% due 11/15/03 148,000 139,040
True Temper Sports, Inc.,
10.875% due 12/01/08 250,000 237,500
United International Holdings, Inc.,
10.75% due 02/15/08 1,000,000 660,000
------------
2,477,087
Pollution Control - 0.96%
Allied Waste Industries, Inc.,
7.875% due 01/01/09 500,000 375,000
------------
Publishing - 0.61%
Hollinger International, Inc.,
9.25% due 03/15/07 250,000 241,250
------------
Real Estate - 1.66%
HMH Properties, Inc.,
7.875% due 08/01/08 500,000 432,500
Radnor Holdings Corp.,
10.00% due 12/01/03 250,000 220,000
------------
652,500
Steel - 0.58%
AK Steel Corp.,
7.875% due 02/15/09 250,000 227,500
------------
Telecommunication Services - 7.89%
Adelphia Communications Corp.,
9.50% due 02/15/04 46,998 46,058
9.875% due 03/01/07 175,000 169,312
Century Communications Corp.,
8.875% due 01/15/07 175,000 160,125
Zero Coupon due 01/15/08 250,000 103,750
</TABLE>
<TABLE>
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
Telecommunication Services - cont'd.
Covad Communications Group,
12.0% due 02/15/10 $250,000 $233,750
GTE Corp.,
6.94% due 04/15/28 18,000 15,772
Intermedia Communications, Inc.,
8.50% due 01/15/08 250,000 227,500
International Cabletel, Inc.,
11.50% due 02/01/06 1,000,000 925,000
Nextel Communications,
9.95% due 02/15/08 750,000 525,000
PSI Net, Inc.,
11.0% due 08/01/09 250,000 220,000
Telewest Communication Plc,
Step up to 11.00% due 10/01/07 500,000 471,250
------------
3,097,517
Transportation - 0.85%
TFM SA de CV,
Step up to 11.75% due 06/15/09 500,000 335,000
------------
TOTAL CORPORATE BONDS (Cost $15,115,841) 13,323,957
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 12.32%
Federal Home Loan Banks - 1.14%
5.89% due 07/24/00 450,000 449,298
Federal Home Loan Mortgage Corporation - 1.41%
8.50% due 05/01/08 265,572 268,643
10.00% due 05/15/20 237,055 246,537
11.565% due 06/15/21 138,833 40,733
------------
555,913
Government National Mortgage Association - 1.68%
7.50% due 07/15/27 268,789 264,505
7.50% due 10/15/27 329,472 324,220
7.50% due 10/15/27 70,212 69,092
------------
657,817
Federal National Mortgage Association - 2.61%
7.50% TBA 1,000,000 978,430
13.00% due 11/15/15 40,110 45,299
------------
1,023,729
Federal National Mortgage Association -- Interest Only - 2.81%
Interest Only due 03/17/20, REMIC 6,094,647 132,168
Interest Only due 02/25/35, REMIC 5,807,788 345,353
Interest Only due 10/17/36, REMIC 12,603,650 284,937
Interest Only due 06/25/38, REMIC 6,178,406 340,558
------------
1,103,016
</TABLE>
The accompanying notes are an integral part of the financial statements.
60
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
Federal National Mortgage Association - CMO - 1.52%
7.393% due 08/17/03, REMIC $219,489 $219,414
8.80% due 01/25/19, REMIC 315,608 320,242
10.40% due 04/25/19, REMIC 56,168 58,783
------------
598,439
Student Loan Marketing Association - 1.15%
7.20% due 11/09/00 450,000 451,337
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $5,174,446) 4,839,549
------------
FIXED INCOME - OTHER - 21.66%
Collateralized Mortgage Obligations - 8.14%
Green Tree Financial Corp.,
7.07% due 09/15/07 2,043,991 1,936,027
Mid State Trust VI, Class A,
7.34% due 07/01/35 1,314,395 1,262,226
------------
3,198,253
Commercial Mortgage Backed Securities - 4.81%
Commercial Mortgage Asset Trust, 7.35% due 08/17/13 1,200,000 1,135,200
DLJ Commercial Mortgage Corp.,
Interest Only Strips:
due 05/10/23 9,591,865 383,579
due 11/12/31 7,569,593 367,428
------------
1,886,207
Residential Subordinate Securities - 8.71%
ContiMortgage Home EquityLoan, 7.00% due 12/29/25, 144A 500,000 443,585
First Union Residential Securities, 7.00% due 08/25/28 242,714 213,843
GE Capital Management Services, Inc. 6.75% due 11/25/28 984,084 879,949
PNC Mortgage Securities Corp., 6.734% due 07/25/28 414,402 357,351
6.75% due 05/25/28 343,315 295,192
6.772% due 03/25/29 494,350 442,122
6.838% due 05/25/28 465,842 405,691
6.905% due 04/25/29 442,892 385,307
------------
3,423,040
TOTAL FIXED INCOME - OTHER 8,507,500
------------
(Cost $9,112,036)
FOREIGN GOVERNMENT OBLIGATIONS - 23.95%
Algeria - 1.15%
6.375% due 03/04/10 600,000 450,000
------------
Republic of Argentina - 0.97%
11.375% due 01/30/17 400,000 381,600
------------
Federal Republic of Brazil - 5.48%
7.00% due 04/15/12 600,000 431,280
8.00% due 04/15/14 1,185,848 854,522
9.375% due 04/07/08 150,000 125,535
14.5% due 10/15/09 700,000 739,410
------------
2,150,747
</TABLE>
<TABLE>
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
National Republic of Bulgaria - 0.71%
2.75% due 07/28/12 $400,000 $278,000
------------
Canadian Government Treasury Bills - 0.17%
5.82% due 06/08/00 101,000 67,816
------------
Republic of Ecuador - 0.64%
4.00% FRB due 02/28/25 700,000 249,410
------------
Federal Republic of Germany - 0.96%
4.000% due 07/04/09 110,000 90,601
4.250% due 11/26/04 200,000 176,365
5.625% due 01/04/28 120,000 107,979
------------
374,945
Republic of Italy - 0.23%
5.25% due 11/01/29 110,000 91,601
------------
Government of Mexico - 3.38%
6.25% due 12/31/19 1,400,000 1,168,300
10.375% due 02/17/09 150,000 158,138
------------
1,326,438
Government of Morocco - 0.82%
6.843% due 01/01/09 364,286 325,125
------------
Kingdom of Norway - 1.11%
5.75% due 11/30/04 4,000,000 434,894
------------
Government of Peru - 2.17%
3.75% FRB due 03/07/17 1,400,000 854,000
------------
Republic of South Africa - 2.09%
12.0% due 02/28/05 3,000,000 413,384
13.00% due 08/31/10 3,000,000 407,755
------------
821,139
Kingdom of Spain - 0.19%
6.15% due 01/31/13 80,000 75,983
------------
Kingdom of Sweden - 0.26%
10.25% due 05/05/03 800,000 101,432
------------
Republic of Venezuela - 3.62%
7.437% due 03/31/07 833,829 646,913
13.625% due 08/15/18 850,000 776,092
------------
1,423,005
TOTAL FOREIGN GOVERNMENT OBLIGATIONS 9,406,135
------------
(Cost $9,384,239)
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
PREFERRED STOCK - 0.60%
TCR Holdings-Class B 570 6
TCR Holdings-Class C 314 3
TCR Holdings-Class D 827 8
TCR Holdings-Class E 1,711 17
------------
34
------------
Drugs & Health Care - 0.60%
Fresenius Medical Care Capital Trust,
9.00% due 12/01/06 255,625 235,000
------------
TOTAL PREFERRED STOCK 235,034
------------
(Cost $255,828)
</TABLE>
The accompanying notes are an integral part of the financial statements.
61
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
RIGHTS & WARRANTS - 0.07%
Crude Petroleum & Natural Gas - 0.07%
Terex Corporation,
Zero Coupon due 05/15/02 $2,000 $28,250
Other - 0.00%
BCP Holdings Corp.
exp. 04/15/04 500 0
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 $0) 28,258
------------
REPURCHASE AGREEMENT - 7.47%
Repurchase Agreement with State Street Bank & Trust Co.
dated 04/28/00 at 5.62%, to be repurchased at
$2,936,352 on 05/01/00, collateralized by $2,175,000
U.S. Treasury Bonds, 9.875% due 11/15/15 (valued at
$3,124,617, including interest)
(Cost $2,935,000) 2,935,000 2,935,000
------------
TOTAL INVESTMENTS
(Strategic Income Fund)
(Cost $41,977,390) $39,275,433
------------
-------------------------------------------------------------------------------
Core Bond Fund
-------------------------------------------------------------------------------
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
CORPORATE BONDS - 52.46%
Automobiles - 1.92%
Daimler Chrysler,
7.125% due 04/10/03 $190,000 $187,783
------------
Banking - 12.86%
BankAmerica Corp.,
9.50% due 04/01/01 114,000 116,294
First Financial Caribbean Corp.,
7.84% due 10/10/06 135,000 128,328
First Union National Bank,
7.875% due 02/15/10 95,000 93,978
NBD Bancorp,
8.25% due 11/01/24 300,000 310,965
Republic New York Corp.,
9.75% due 12/01/00 155,000 157,099
Royal Bank of Scotland Group Plc,
6.40% due 04/01/09 150,000 134,802
U.S. Bancorp,
7.50% due 06/01/26 300,000 293,829
Western Financial Savings,
8.875% due 08/01/07 25,000 21,750
------------
1,257,045
Business Services - 0.04%
AMSC Acquisition, Inc.,
12.25% due 04/01/08 5,000 3,750
------------
</TABLE>
<TABLE>
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
Chemical Products - 0.94%
Arco Chemical Co.,
9.80% due 02/01/20 $5,000 $4,550
ICI North America, Inc.,
8.875% due 11/15/06 65,000 67,438
Lyondell Chemical Company,
9.875% due 05/01/07 20,000 19,650
----------
91,638
Crude Petroleum & Natural Gas - 2.63%
Energy Corporation of America,
9.50% due 05/15/07 20,000 13,400
Enron Corp.,
6.75% due 09/01/04 100,000 95,796
Texas Petrochemicals Corp.,
11.125% due 07/01/06 10,000 8,200
Williams Companies, Inc.,
7.625% due 07/15/19 150,000 139,994
----------
257,390
Drugs & Health Care - 3.29%
Alaris Medical, Inc.,
Step-up due 08/01/08 15,000 4,050
Allegiance Corp.,
7.00% due 10/15/26 325,000 305,477
Mediq/PRN Life Support Services,
11.0% due 06/01/08 10,000 1,000
Triad Hospitals Holdings, Inc.,
11.0% due 05/15/09, 144A 5,000 5,200
Universal Hospital Services, Inc.,
10.25% due 03/01/08 15,000 5,700
----------
321,427
Financial Services - 16.79%
AAG Holding, Inc.,
6.875% due 06/01/08 100,000 90,781
Amerus Capital I,
8.85% due 02/01/27 100,000 87,089
Amvescap Plc,
6.60% due 05/15/05 150,000 139,401
Associates Corp. of North America,
5.75% due 11/01/23 120,000 113,126
BanPonce Financial Corp.,
6.75% due 08/09/01 250,000 248,060
Beneficial Corp.,
8.40% due 05/15/08 75,000 76,390
Credit National,
7.00% due 11/14/05 150,000 143,392
EOP Operating LP,
6.50% due 01/15/04 95,000 89,305
Ford Motor Credit Corp.,
6.70% due 07/16/04 115,000 110,598
General Electric Capital Corp.,
7.25% due 05/03/04 35,000 34,827
Heller Financial, Inc.,
7.375% due 11/01/09, 144A 115,000 108,281
</TABLE>
The accompanying notes are an integral part of the financial statements.
62
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
Financial Services - cont'd.
KFW International Finance, Inc.,
7.125% due 02/15/05 $200,000 $198,590
Sun Canada Financial Co.,
7.25% due 12/15/15, 144A 200,000 196,018
Tembec Finance Corp.,
9.875% due 10/31/05 5,000 5,050
------------
1,640,908
Food & Beverages - 0.77%
Chiquita Brands International, Inc.,
10.0%, due 06/15/09 5,000 3,975
Del Monte Foods Co.,
Step-up, due 12/15/07 16,000 11,680
Joseph E. Seagram & Sons, Inc.,
7.50% due 12/15/18 65,000 59,760
------------
75,415
Industrials - 4.05%
Domtar, Inc.,
9.50% due 08/01/16 10,000 10,327
Duane Reade, Inc.,
9.25% due 02/15/08 5,000 4,675
EchoStar DBS Corp.,
9.375% due 02/01/09 10,000 9,600
Frontiervision Holding, L.P.,
Step-up, due 09/15/07 5,000 4,413
Grove Worldwide LLC,
9.25% due 05/01/08 15,000 6,450
Iridium Operations LLC,
11.25% due 07/15/05 25,000 500
K & F Industries, Inc.,
9.25% due 10/15/07 10,000 9,250
KN Energy, Inc.,
6.65% due 03/01/05 100,000 93,918
LDM Technologies, Inc.,
10.75% due 01/15/07 20,000 14,950
Pioneer Americas Acquisition Corp.,
9.25% due 06/15/07 5,000 4,150
Psinet, Inc.,
11.50% due 11/01/08 5,000 4,500
Psinet, Inc.,
10.00% due 02/15/05 5,000 4,400
Raytheon Company,
6.75% due 08/15/07 40,000 36,796
Royster Clark, Inc.,
10.25% due 04/01/09, 144A 10,000 8,150
SCL Aereo Santiago,
6.95% due 07/01/12, 144A 100,000 91,157
Standard Pacific Corp.,
8.50% due 06/15/07 5,000 4,400
Sullivan Graphics, Inc.,
12.75% due 08/01/05 20,000 20,300
YPF SA
8.00% due 02/15/04 70,000 67,697
------------
395,633
</TABLE>
<TABLE>
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
Insurance - 3.28%
Florida Windstorm Underwriting,
7.125% due 02/25/19, 144A $180,000 $ 168,811
Ohio National Life Insurance Co.,
8.50% due 05/15/26, 144A 150,000 152,256
------------
321,067
Leisure Time - 0.25%
Bell Sports, Inc.,
11.00% due 08/15/08 10,000 9,825
Station Casinos, Inc.,
8.875% due 12/01/08, 144A 15,000 14,400
------------
24,225
Retail Trade - 0.05%
Mattress Discounters Corp., Units,
12.625% due 07/15/07, 144A 5,000 4,550
------------
Steel - 0.14%
AK Steel Corp.,
7.875% due 02/15/09 15,000 13,650
------------
Telecommunication Services - 3.98%
Allbritton Communications Co.,
8.875% due 02/01/08 10,000 8,925
American Media Operations, Inc.,
10.25% due 05/01/09 5,000 4,775
Benedek Communications Corp.,
Step-up due 05/15/06* 5,000 4,513
BTI Telecommunications Corp.,
10.50% due 09/15/07 5,000 3,937
Century Communications,
Step-up, due 01/15/08 * 35,000 14,525
Charter Communications Holdings,
8.625% due 04/01/09 15,000 13,088
Concentric Network Corp.,
12.75% due 12/15/07 10,000 10,700
Exodus Communications, Inc.,
11.25% due 07/01/08 5,000 5,063
GST Telecommunications, Inc.,
12.75% 11/15/07 20,000 12,000
Hyperion Telecommunications, Inc.,
13.0% due 04/15/03* 10,000 9,300
Intermedia Communications, Inc.,
8.875% due 11/01/07 10,000 9,250
Intermedia Communications, Inc.,
8.60% due 06/01/08 10,000 9,125
KMC Telecom. Holdings, Inc.,
Step-up due 02/15/08* 50,000 24,563
Nextlink Communications, Inc.,
Step-up due 04/15/08 * 30,000 18,300
NTL Communications Corp.,
Step-up due 10/01/08* 20,000 13,100
Satelites Mexicanos SA,
10.125% due 11/01/04 10,000 7,500
</TABLE>
The accompanying notes are an integral part of the financial statements.
63
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (Unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
Telecommunication Services - cont'd.
Telecommunications Techniques Co., LLC, 9.75% due
05/15/08 $15,000 $13,650
Tele-Communications, Inc.,
9.25% due 04/15/02 200,000 206,988
------------
389,302
Telephone - 0.91%
Nextel Communications, Inc.,
Step up to 9.75% due 10/31/07 20,000 14,300
U.S. West Capital Funding, Inc.,
6.25% due 07/15/05 80,000 74,875
------------
89,175
Transportation - 0.32%
Southern Railway Company,
8.75% due 10/15/03 30,000 30,843
------------
Utilities - 0.24%
GCI, Inc.,
9.75% due 08/01/07 25,000 23,500
------------
TOTAL CORPORATE BONDS
(Cost $5,454,108) 5,127,301
------------
U.S. TREASURY OBLIGATIONS - 17.58%
U.S. Treasury Bonds - 17.58%
7.50% due 11/15/16 460,000 515,273
12.00% due 08/15/13 900,000 1,202,769
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,786,837) 1,718,042
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 23.32%
Federal Home Loan Mortgage Corp. - 9.24%
6.00% due 11/01/13 - 09/25/22 728,798 666,131
6.50% due 06/15/23 100,000 93,593
6.625% due 09/15/09 150,000 142,992
------------
902,716
Federal National Mortgage Association - 9.24%
5.50% due 08/01/28 346,002 304,482
6.18% due 07/01/08 19,621 18,037
6.27% due 11/01/07 53,825 50,020
6.295% due 06/01/08 19,620 18,173
6.30% due 01/01/08 19,531 18,170
6.305% due 02/01/08 195,355 183,649
6.34% due 01/01/08 19,295 18,009
6.39% due 01/01/06 19,106 18,019
6.43% due 01/01/08 19,529 18,303
6.625% due 09/15/09 210,000 200,321
6.981% due 06/01/07 18,706 17,986
7.04% due 03/01/07 19,438 18,823
7.28% due 10/01/06 19,393 18,997
------------
902,989
Government National Mortgage Association - 4.84%
7.00% due 06/15/23 - 10/15/23 490,521 473,966
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $2,381,941) 2,279,671
</TABLE>
<TABLE>
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
MUNICIPAL SECURITIES - 1.66%
Other Municipal Securities - 1.66%
Phoenix, AZ, Civic Improvement Corp.,
6.30% due 07/01/08 $125,000 $115,580
Southern California Public Power Authority,
6.93% due 05/15/17 50,000 46,640
------------
TOTAL FIXED INCOME - OTHER
(Cost $180,855) 162,220
------------
FIXED INCOME--OTHER - 4.45%
Other Asset Backed Securities - 4.45%
Aesop Funding II LLC,
6.40% due 10/20/03, 144A 100,000 97,768
Continental Airlines,
6.90% due 01/02/18 95,154 86,829
Continental Airlines pass-through,
6.648% due 09/15/17 67,342 60,167
First Union Lehman Bros., Series 1997, Class A2,
6.60% due 05/18/07 200,000 190,427
------------
TOTAL FIXED INCOME - OTHER
(Cost $464,871) 435,191
------------
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
COMMON STOCKS - 0.00%
Telecommunication Services - 0.00%
Decisionone Corp. 23 $5
SF Holdings Group, Inc., 144A 7 0
------------
TOTAL COMMON STOCKS
(Cost $10,089) 5
------------
PREFERRED STOCKS - 0.50%
Concentric Network, PIK 13.5% 5 $5,112
Fairfield Mfg. Co., Inc., PIK 11.25% 25 22,313
Primedia, Inc., 8.625% 145 12,506
SF Holdings Group, Inc.*, 13.75% 2 9,050
------------
TOTAL PREFERRED STOCKS
(Cost $61,333) 48,981
------------
WARRANTS - 0.03%
Concentric Network Corp.*,
Exp. 12/15/07, 144A 5 $2,351
KMC Telecom. Holdings, Inc.*,
Exp. 04/15/08, 144A 50 153
Motient Corp.*,
Exp. 04/01/2008 5 375
------------
TOTAL WARRANTS
(Cost $0) $2,879
------------
TOTAL INVESTMENTS (Core Bond Fund)
(Cost $10,340,034) $9,774,290
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
64
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Municipal Bond Fund
<TABLE>
-------------------------------------------------------------------------------
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
LONG-TERM INVESTMENTS - 100.00%
Alabama - 1.82%
Alabama Housing Finance Authority Single Family
Mortgage Revenue Collateralized Home Mortgage Program,
Series B-2, 6.40%, 04/01/25 $175,000 $176,747
------------
California - 10.37%
California Housing Finance Agency Revenue, Series H,
6.15%, 08/01/16 1,000,000 1,004,380
------------
Illinois - 12.25%
Chicago, IL, General Obligation, Series B, VRON,
01/01/14 100,000 100,000
Illinois Health Facilities Authority Revenue (Hospital
Association Project), 7.00%, 02/15/22 200,000 210,860
Chicago, Illinois, Water Revenue,
6.50%, 11/01/15 450,000 492,098
Chicago, Illinois, Skyway Toll Bridge, Revenue,
5.375%, 01/01/16 400,000 384,208
------------
1,187,166
Iowa - 1.64%
Iowa Finance Authority Hospital Facility Revenue
Refunding (Trinity Regional Hospital Project), 7.00%,
07/01/12 150,000 158,663
------------
Kansas - 5.08%
Kansas State Turnpike Authority Revenue, 5.375%,
09/01/10 340,000 343,604
Wyandotte County, Kansas City, Kansas, Unified
Government Utility System Revenue, 5.75%, 09/01/24 150,000 147,861
------------
491,465
Louisiana - 4.51%
Louisiana Public Facilities Authority Hospital Revenue
Refunding (Touro Infirmary Project), Series B,
6.125%, 08/15/23 500,000 436,355
------------
Maine - 0.26%
Maine State Housing Authority Mortgage Purchase,
Revenue Series A-4, 6.375%, 11/15/12 25,000 25,200
------------
Missouri - 5.31%
Missouri State Health & Educational Facilities
Authority Revenue, 6.25%, 02/15/11 500,000 514,044
------------
</TABLE>
<TABLE>
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
Nevada - 5.61%
Nevada Housing Division, Single-Family Revenue Program,
B-2, 6.95%, 10/01/26 $235,000 $240,579
Nevada Housing Division, Single-Family Revenue Program,
Issue C, 6.35%, 10/01/12 300,000 302,652
------------
543,231
New Jersey - 4.97%
New Jersey Economic Development Authority Water
Facilities Revenue (New Jersey American Water Company,
Incorporated Project), 6.875%, 11/01/34 450,000 480,897
------------
New York - 16.22%
New York City Municipal Water Finance Authority
Revenue, Series A, 5.50%, 06/15/23 250,000 234,752
New York State Local Government Assistance Corporation,
Series A, 6.00%, 04/01/16 410,000 417,638
New York State Environmental Facilities Corporation
Pollution Control Revenue Refunding (IBM Corporation
Project), 7.125%, 07/01/12 480,000 491,429
New York State Mortgage Agency Revenue, Series 40-A,
6.35%, 04/01/21 420,000 426,779
------------
1,570,598
Pennsylvania - 9.94%
Delaware Valley, Pennsylvania, Regional Finance
Authority Series A, 5.50%, 08/01/28 500,000 476,035
Philadelphia, Pennsylvania, Water & Wastewater Revenue,
6.25%, 08/01/12 450,000 486,445
------------
962,480
South Carolina - 5.15%
Greenville Hospital Systems Hospital Facilities
Revenue, Series B, 5.70%, 05/01/12 500,000 498,965
------------
Tennessee - 4.88%
Humphreys County, Tennessee, Industrial Development
Board Solid Waste Disposal Revenue (Inland Container
Corp. Project), 6.70%, 05/01/24 450,000 472,689
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
65
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
Texas - 6.07%
Texas State Veterans Housing Assistance,
6.80%, 12/01/23 $65,000 $66,999
Port Arthur, Texas, Navigation District, Zero
Coupon, 03/01/10 900,000 521,109
------------
Wisconsin - 5.92%
Wisconsin Housing & Economic Development Authority
Home Ownership Revenue, Series D, 6.10%, 07/01/24 85,000 85,450
Wisconsin State Health & Educational Facilities
Authority Revenue, Mercy Hospital of Janesville,
Incorporated, 6.60%, 08/15/22 500,000 487,420
------------
572,870
TOTAL INVESTMENTS
(Municipal Bond Fund)
(Cost $9,762,628) $9,683,858
------------
---------------------------------------------------------------------------
U.S. Government Securities Fund
---------------------------------------------------------------------------
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 3.89%
U.S. Treasury Bonds - 3.89%
6.125% due 08/15/29 $1,250,000 $1,252,925
6.375% due 08/15/27 800,000 816,872
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $2,048,192) 2,069,797
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 89.28%
Federal Home Loan Banks - 2.53%
5.80% due 09/02/08 1,500,000 1,345,785
------------
Federal Home Loan Mortgage Corporation - 23.57%
6.00% due 09/01/10 - 7/01/29 4,230,152 3,851,719
6.625% due 09/15/09 700,000 667,296
7.00% due 10/01/12 5,378,824 5,252,745
7.00% due 04/15/21 792,392 779,761
8.00% due 06/01/08 119,861 119,561
8.25% due 07/01/06 94,787 95,099
8.50% due 05/01/08 120,431 121,105
9.50% due 08/01/20 442,711 461,527
10.0% due 03/01/16 1,096,132 1,163,215
11.75% due 08/01/13 31,132 33,860
------------
12,545,888
Federal National Mortgage Association - 56.94%
6.50% due 12/01/03 - 2/01/29 7,775,050 7,289,156
6.527% due 05/25/30 REMIC 2,750,000 2,568,940
6.689% due 12/28/28 REMIC 1,973,147 1,874,588
</TABLE>
<TABLE>
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
Federal National Mortgage
Association - cont'd.
6.783% due 01/17/03 REMIC $763,775 $761,483
7.00% TBA 1,000,000 956,560
7.00% due 05/01/24 - 2/01/29 11,438,574 10,961,082
7.50% TBA 2,000,000 1,956,860
8.00% TBA 400,000 399,372
8.00% due 08/01/04 16,034 16,086
8.25% due 03/25/06 REMIC 675,000 679,847
8.50% due 08/01/02 24,319 24,584
11.00% due 02/01/15 360 392
11.50% due 04/01/19 136,874 150,518
12.00% due 02/01/16 - 4/01/16 901,982 1,004,263
12.50% due 07/01/15 776,437 866,364
13.00% TBA 552,882 624,409
14.50% due 11/01/14 150,051 172,511
------------
31,334,485 30,307,015
Government National Mortgage
Association - 6.24%
7.50% TBA 500,000 491,714
7.50% due 04/15/02 - 09/15/27 754,044 744,362
7.75% due 04/15/04 36,610 36,705
8.00% due 11/15/06 - 02/15/08 24,316 24,568
9.00% due 03/20/16 - 06/20/17 1,100,198 1,132,810
10.25% due 03/15/01 10,593 10,855
11.00% due 11/20/14 - 09/20/15 9,078 9,760
11.25% due 08/20/15 - 10/20/15 3,765 4,015
11.50% due 08/20/00 - 09/20/15 280,678 306,278
12.50% due 09/15/14 16,594 18,584
13.00% due 01/15/11 - 06/15/15 232,355 261,408
13.25% due 07/15/14 38,802 43,300
13.50% due 11/15/12 - 02/15/13 33,630 38,122
15.00% due 07/15/11 - 09/15/12 47,909 56,511
15.50% due 08/15/11 - 09/15/11 117,817 133,305
16.00% due 11/15/11 9,264 10,817
------------
3,323,114
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $49,777,767) $47,521,802
------------
REPURCHASE AGREEMENTS - 6.83%
Repurchase Agreement with State Street Bank & Trust
Co. dated 04/28/00 at 4.75%, to be repurchased at
$3,637,675 on 05/01/00, collateralized by
$3,660,000 U.S. Treasury Notes, 6.25% due 10/31/01
(valued at $3,749,099, including interest) (Cost
$3,636,000) $3,636,000 $3,636,000
------------
TOTAL INVESTMENTS (U.S. Government Securities Fund)
(Cost $55,461,959) $53,227,599
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
66
<PAGE>
NORTH AMERICAN FUNDS
PORTFOLIO OF INVESTMENTS - April 30, 2000 (unaudited)
(showing percentage of total value of investments)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Money Market Fund
<TABLE>
--------------------------------------------------------------------
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
COMMERCIAL PAPER - 67.91%
Albertson's, Inc.,
5.95% due 05/01/00 $277,000 $277,000
AON Corp.,
6.08% due 05/15/00 794,000 792,123
BancOne Corp.,
6.07% due 05/22/00 775,000 772,256
Baxter International, Inc.,
6.10% due 05/22/00 800,000 797,154
Bell Atlantic Financial Services,
6.00% due 05/05/00 140,000 139,907
Cardinal Health, Inc.,
6.02% due 05/08/00 831,000 830,027
Ciesco L.P.,
6.10% due 06/19/00 260,000 257,841
Coca Cola Co.,
6.05% due 06/07/00 421,000 418,382
Colgate Palmolive Co.,
6.00% due 05/17/00 800,000 797,867
Cooper Industries, Inc.,
6.10% due 05/01/00 604,000 604,000
Countrywide Home Loans, Inc.,
6.06% due 05/25/00 266,000 264,926
CVS Corp.,
6.05% due 05/03/00 800,000 799,731
Dover Corporation,
6.10% due 05/31/00 394,000 391,997
E.I. Du Pont De Nemours & Co.,
6.01% due 05/04/00 800,000 799,599
Eastman Kodak Company,
6.18% due 07/14/00 379,000 374,185
GTE Corp.,
6.07% due 05/10/00 800,000 798,786
Kellogg Company,
6.01% due 05/12/00 800,000 798,531
Marsh & McClennan, Inc.,
6.02% due 05/03/99 840,000 839,719
Merrill Lynch & Co., Inc.,
6.07% due 06/01/00 378,000 376,024
PPG Industries, Inc.,
6.01% due 05/16/00 700,000 698,247
Snap On Tools Corp.,
6.00% due 05/02/00 800,000 799,867
Wal Mart Stores, Inc.,
5.99% due 05/19/00 840,000 837,484
------------
TOTAL COMMERCIAL PAPER $13,465,653
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 32.09%
Student Loan Marketing Association - 7.56%
6.222% due 02/21/01 $1,500,000 $1,500,000
</TABLE>
<TABLE>
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
Federal Home Loan
Banks - 10.09%
6.182% disc note due 06/09/00 $2,000,000 $2,000,000
Federal National Mortgage Association - 14.44%
5.95% disc note due 05/30/00 2,877,000 2,863,210
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS $6,363,210
------------
TOTAL INVESTMENTS
(Money Market Fund) $19,828,863
------------
</TABLE>
Key to Currency Abbreviations
AUD-Australian Dollar
CAD-Canadian Dollar
EUR-European Currency Unit
GBP-British Pound
GRD-Greek Drachma
HKD-Hong Kong Dollar
JPY-Japanese Yen
NOK-Norwegian Krone
PLN-Polish Zloty
SEK-Swedish Krona
Key to Security Abbreviations and Legend
FRB Floating Rate Bond. The interest rates shown on FRBs are the current
interest rates at October 31, 1999, which are subject to change based on
the terms of the security.
REMIC Real Estate Mortgage Investment Conduit
TBA To Be Announced
1 Non-Income producing, issuer is in default of interest payments
2 Non-Income producing, issuer is in bankruptcy and is in default of
interest payments
/\ Collateral for forward commitments
* Non-Income producing
** Purchased on a forward commitment (Note 2)
The accompanying notes are an integral part of the financial statements.
67
<PAGE>
NORTH AMERICAN FUNDS
NOTES TO FINANCIAL STATEMENTS (unaudited)
-------------------------------------------------------------------------------
1. ORGANIZATION OF THE FUND. North American Funds (the "Fund") is organized as
a Massachusetts business trust and is registered under the Investment Company
Act of 1940, as amended, as an open-end management investment company. 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, 2000, the Fund offered the following fifteen portfolios: the
International Small Cap Fund ("International Small Cap"), the International
Equity Fund, (formerly the International Growth & Income Fund) ("International
Equity"), the Global Equity Fund ("Global Equity"), the Small Cap Growth Fund
(formerly the Emerging Growth Fund) ("Small Cap Growth"), the Mid Cap Growth
Fund (formerly the Small/Mid Cap Fund) ("Mid Cap Growth"), the Large Cap
Growth Fund (formerly the Growth Equity Fund) ("Large Cap Growth"), the Tax-
Sensitive Equity Fund ("Tax-Sensitive Equity"), the Growth & Income Fund
("Growth & Income"), the Equity-Income Fund ("Equity-Income"), the Balanced
Fund ("Balanced"), the Strategic Income Fund ("Strategic Income"), the Core
Bond Fund (formerly the Investment Quality Bond Fund) ("Core Bond"), the
Municipal Bond Fund, (formerly the Municipal Bond Fund) ("Municipal Bond"),
the U.S. Government Securities Fund ("U.S. Government Securities") and the
Money Market Fund ("Money Market"). All of the portfolios are diversified
management investment companies except for Small Cap Growth, which is a non-
diversified management investment company.
The Fund offers Class A, Class B and Class C shares. Class A shares are sold
with a front-end sales charge 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. 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.
Effective March 10, 2000 CypressTree Investments, Inc. ("CypressTree") sold
substantially all of its assets including all of the stock of CypressTree
Asset Management Corporation, Inc. ("CAM"), the Trust's investment adviser,
and all of the stock of CypressTree Funds Distributors, Inc. ("CFD"), the
Trust's distributor, to American General Corporation ("American General"). The
acquisition by American General of CypressTree's assets (herein "the
Acquisition") took place pursuant to a Purchase Agreement dated February 25,
2000.
The closing of the Acquisition on March 10, 2000 (the "Closing") constituted
an assignment of the investment advisory agreement between CAM and the Trust
with respect to the Funds, and of the distribution agreement between CFD and
the Trust. Under the Investment Company Act of 1940, as amended (the
"Investment Company Act"), these assignments operated to terminate
automatically each of the investment advisory and distribution agreements.
American General Asset Management Corp.("AGAM") serves as investment adviser
and principal underwriter for the Fund, effective March 10, 2000, pursuant to
approval by the Fund's Board of Trustees and the Fund's shareholders at a
special shareholder meeting scheduled to take place in June 2000. Previously,
those services were provided by CypressTree Asset Management Corporation, Inc.
("CAM"), a wholly-owned subsidiary of CypressTree Investments, Inc.
("CypressTree"). American General Fund Distributor ("AGFD") serves as
distributor for the Fund. Previously, this service was provided by CypressTree
Funds Distributors, Inc. ("CFD"), also a wholly-owned subsidiary of
CypressTree.
Effective March 10, 2000, Founders Asset Management LLC became sub-adviser to
Global Equity, INVESCO Funds Group Inc. became sub-adviser to Mid Cap Growth
and Balanced, Wellington Management Co. LLP became sub-adviser to both Tax-
Sensitive Equity and Equity-Income, and American General Investment Management
L.P. ("AGIM") became sub-adviser to Strategic Income, Core Bond, Municipal
Bond, U.S. Government Securities and Money Market Funds.
2. SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of significant
accounting policies consistently followed by the Fund in the preparation of
its financial statements. The preparation of financial statements is in
conformity with generally accepted accounting principles and requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities at the date of the financial statements and the
reported amounts of increases and decreases in net assets from operations
during the reporting period. Actual results could differ from those estimates.
68
<PAGE>
NORTH AMERICAN FUNDS
NOTES TO FINANCIAL STATEMENTS (unaudited)
-------------------------------------------------------------------------------
Note 2 - continued
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 New York Stock Exchange, Inc. 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, 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 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.
Options Contracts. The Fund may use option contracts to hedge against changes
in the value of securities the Fund owns or expects to purchase. The Fund may
also write options on securities it owns or in which it may invest in an
attempt to increase its current returns. The potential risk to the Fund is
that the change in value of options contracts may not correspond to the change
in value of the hedged instruments. Also, losses may arise from changes in the
value of the underlying instruments, if there is an illiquid secondary market
for the contracts, or if the counterparty to the contract is unable to
perform. When the contract is closed, the Fund records a realized gain or loss
equal to the difference between the value of the contract at the time it was
opened and the value at the time it was closed. Realized gains and losses on
purchased options are included in realized gains and losses on investment
securities.
Forward Commitments. The Fund may purchase debt securities on a "when-issued"
or "forward delivery" basis. 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 Fund
will establish a segregated account consisting of cash or liquid high-quality
debt securities equal to the amount of the commitment to purchase when-issued
or forward delivery securities. 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, 2000, the forward commitments were $991,667 in Strategic Income Fund
and $3,858,737 in U.S. Government Securities Fund.
69
<PAGE>
NORTH AMERICAN FUNDS
NOTES TO FINANCIAL STATEMENTS (unaudited)
-------------------------------------------------------------------------------
Note 2 - continued
Mortgage Dollar Rolls. Each of the Funds except the Money Market Fund 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.
Futures Contracts. The Fund may enter into futures contacts. Upon entering
into a futures contract, the portfolio is required to deposit with the
custodian on behalf of the broker an amount of cash or cash equivalents equal
to a certain percentage of the contract amount, which is known as the "initial
margin". The potential risk to the Fund is that the change in value of futures
contracts may not correspond to the change in value of the hedged instruments.
Also, losses may arise from changes in the value of the underlying
instruments, if there is an illiquid secondary market for the contracts, or if
the counterparty to the contract is unable to perform. Subsequent payments,
called "variation margin", are made or received by the portfolio, depending
upon the fluctuation of the value of the futures contract. When futures
contracts are closed, the difference between the opening value at the date of
purchase and the value at closing is recorded as realized gain/(loss) in the
Statement of Operations.
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. Cash collateral provided is invested in the State
Street Bank and Trust Company Navigator Securities Lending Trust. The related
income 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, 2000, the value of the securities loaned amounted to
$2,991,224, $3,489,224, $10,640,568, $4,459,614, $9,406,919, $4,254,594,
$7,006, and $1,310,552 in International Equity, Global Equity, Mid Cap Growth,
Large Cap Growth, Growth & Income, Equity-Income, Strategic Income and Core
Bond, respectively. At April 30, 2000, the value of collateral amounted to
$3,161,281, $3,642,166, $10,194,186, $4,271,340, $9,571,700, $4,347,700,
$7,350, and $1,334,575 in International Equity, Global Equity, Mid Cap Growth,
Large Cap Growth, Growth & Income, Equity-Income, Strategic Income and Core
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,
Municipal Bond, U.S. Government Securities and Money Market, semi-annually to
shareholders of International Equity and Growth & 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,
70
<PAGE>
NORTH AMERICAN FUNDS
NOTES TO FINANCIAL STATEMENTS (unaudited)
-------------------------------------------------------------------------------
Note 2 - continued
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 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, 2000, capital loss carryforwards
available to offset future recognized gains were approximately:
<TABLE>
<CAPTION>
Capital Loss Carryforwards
Expiration Year
---------------------------------------------------
Portfolio 2002 2003 2004 2005 2006 2007
-------------------- -------- ---------- ---- ------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Tax-Sensitive Equity - - - - $754,731 $991,007
Strategic Income 3,866,240
Core Bond $329,026 - - - - 186,540
Municipal Bond - - - $24,157 - 75,958
U. S. Government
Securities - $1,062,756 - - - 594,779
Money Market - - - 1,130 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.
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.
71
<PAGE>
NORTH AMERICAN FUNDS
NOTES TO FINANCIAL STATEMENTS (unaudited)
--------------------------------------------------------------------------------
3. CAPITAL SHARES. Share activity for the period ended April 30, 2000, 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.................... 288,469 $8,351,308 182,830 $4,911,385 266,214 $7,547,888
Reinvestment of
distributions.......... 28,290 633,967 75,977 1,645,098 61,876 1,343,395
---------- ------------- ---------- ------------- ----------- -------------
Redeemed................ (176,394) (5,454,671) (76,342) (2,005,555) (95,421) (2,539,250)
---------- ------------- ---------- ------------- ----------- -------------
Net
increase/(decrease)... 140,365 $3,530,604 182,465 $4,550,928 232,669 $6,352,033
International Equity
(formerly International
Growth and Income)
Sold.................... 279,770 $3,322,321 109,617 $1,315,663 125,019 $1,477,555
Reinvestment of
distributions.......... 27,241 318,992 85,506 992,721 40,654 471,996
Redeemed................ (234,670) (2,816,656) (198,682) (2,386,228) (156,280) (1,864,149)
---------- ------------- ---------- ------------- ----------- -------------
Net
increase/(decrease)... 72,341 $824,657 (3,559) ($77,844) 9,393 $85,402
---------- ------------- ---------- ------------- ----------- -------------
Global Equity
Sold.................... 45,598 $606,515 32,500 $445,510 824,334 $11,111,798
Reinvestment of
distributions.......... 102,952 1,452,660 223,716 3,087,256 391,118 5,420,853
Redeemed................ (261,222) (3,835,003) (475,839) (6,546,591) (1,718,550) (23,599,828)
---------- ------------- ---------- ------------- ----------- -------------
Net
increase/(decrease)... (112,672) ($1,775,828) (219,623) ($3,013,825) (503,098) ($7,067,177)
---------- ------------- ---------- ------------- ----------- -------------
Small Cap Growth
(formerly Emerging
Growth)
Sold.................... 50,534 $982,834 92,664 $1,796,845 116,756 $2,170,854
Reinvestment of
distributions.......... 101 1,650 328 5,418 329 5,265
Redeemed................ (7,195) (132,092) (21,196) (370,413) (18,787) (336,147)
---------- ------------- ---------- ------------- ----------- -------------
Net
increase/(decrease)... 43,440 $852,392 71,796 $1,431,850 98,298 $1,839,972
---------- ------------- ---------- ------------- ----------- -------------
Mid Cap Growth (formerly
Small/Mid Cap)
Sold.................... 76,304 $1,585,328 177,147 $3,596,514 339,495 $6,833,806
Reinvestment of
distributions.......... 49,651 952,338 157,438 2,915,850 158,928 2,949,752
Redeemed................ (62,119) (1,324,994) (127,008) (2,496,065) (367,420) (7,431,367)
---------- ------------- ---------- ------------- ----------- -------------
Net
increase/(decrease)... 63,836 $1,212,672 207,577 $4,016,299 131,003 $2,352,191
---------- ------------- ---------- ------------- ----------- -------------
Large Cap Growth
(formerly Growth
Equity)
Sold.................... 67,181 $1,549,881 301,064 $6,842,942 410,201 $9,297,592
Reinvestment of
distributions.......... 33,301 727,304 104,924 2,232,012 115,285 2,448,779
Redeemed................ (61,436) (1,453,065) (131,932) (2,983,935) (207,463) (4,653,541)
---------- ------------- ---------- ------------- ----------- -------------
Net
increase/(decrease)... 39,046 $824,120 274,056 $6,091,019 318,023 $7,092,830
---------- ------------- ---------- ------------- ----------- -------------
Tax-Sensitive Equity
Sold.................... 3,506 $34,430 8,533 $81,620 11,487 $110,263
Redeemed................ (136,555) (1,337,155) (156,324) (1,488,697) (140,399) (1,363,340)
---------- ------------- ---------- ------------- ----------- -------------
Net
increase/(decrease)... (133,049) ($1,302,725) (147,791) ($1,407,077) (128,912) ($1,253,077)
---------- ------------- ---------- ------------- ----------- -------------
</TABLE>
72
<PAGE>
NORTH AMERICAN FUNDS
NOTES TO FINANCIAL STATEMENTS (unaudited)
--------------------------------------------------------------------------------
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 & Income
Sold.................... 188,595 $5,224,120 442,622 $11,994,765 758,587 $20,748,971
Reinvestment of
distributions.......... 105,674 2,883,868 315,661 8,440,815 449,631 12,077,270
Redeemed................ (248,498) (6,926,256) (729,262) (19,627,803) (1,128,406) (30,560,162)
------------- ------------- ------------ ------------- ------------- -------------
Net
increase/(decrease)... 45,771 $1,181,732 29,021 $807,777 79,812 $2,266,079
------------- ------------- ------------ ------------- ------------- -------------
Equity-Income
Sold.................... 100,423 $1,390,713 51,453 $671,597 118,231 $1,553,537
Reinvestment of
distributions.......... 229,615 2,755,542 469,845 5,591,448 1,078,510 12,931,382
Redeemed................ (395,534) (4,846,217) (827,951) (10,242,703) (1,771,543) (21,985,712)
------------- ------------- ------------ ------------- ------------- -------------
Net
increase/(decrease)... (65,496) ($699,962) (306,653) ($3,979,658) (574,802) ($7,500,793)
------------- ------------- ------------ ------------- ------------- -------------
Balanced
Sold.................... 26,147 $240,813 42,093 $386,157 63,443 $603,986
Reinvestment of
distributions.......... 97,337 845,859 207,915 1,802,703 786,438 6,928,598
Redeemed................ (163,477) (1,499,136) (510,514) (4,655,094) (1,370,463) (12,675,119)
------------- ------------- ------------ ------------- ------------- -------------
Net
increase/(decrease)... (39,993) ($412,464) (260,506) ($2,466,234) (520,582) ($5,142,535)
------------- ------------- ------------ ------------- ------------- -------------
Strategic Income
Sold.................... 51,807 $430,639 84,540 $712,333 71,609 $601,159
Reinvestment of
distributions.......... 24,993 209,805 54,089 454,192 54,616 458,697
Redeemed................ (298,204) (2,507,517) (588,239) (4,949,983) (653,910) (5,506,182)
------------- ------------- ------------ ------------- ------------- -------------
Net
increase/(decrease)... (221,404) ($1,867,073) (449,610) ($3,783,458) (527,685) ($4,446,326)
------------- ------------- ------------ ------------- ------------- -------------
Core Bond (formerly
Investment Quality Bond)
Sold.................... 43,080 $423,804 29,037 $282,707 37,246 $364,270
Reinvestment of
distributions.......... 7,119 69,296 8,978 87,373 9,498 92,429
Redeemed................ (105,120) (1,025,096) (100,463) (979,577) (170,563) (1,663,723)
------------- ------------- ------------ ------------- ------------- -------------
Net
increase/(decrease)... (54,921) ($531,996) (62,448) ($609,497) (123,819) ($1,207,024)
------------- ------------- ------------ ------------- ------------- -------------
Municipal Bond (formerly
National Municipal Bond)
Sold.................... 19,200 $182,525 3,362 $31,711 453 $4,176
Reinvestment of
distributions.......... 5,351 50,279 4,540 42,660 4,172 39,209
Redeemed................ (96,768) (919,408) (91,562) (860,886) (118,974) (1,119,795)
------------- ------------- ------------ ------------- ------------- -------------
Net
increase/(decrease)... (72,217) ($686,604) (83,660) ($786,515) (114,349) ($1,076,410)
------------- ------------- ------------ ------------- ------------- -------------
U.S. Government
Securities
Sold.................... 50,577 $474,301 136,290 $1,285,041 1,369,724 $12,868,508
Reinvestment of
distributions.......... 70,557 663,162 22,589 212,437 24,379 229,237
Redeemed................ (537,076) (5,044,126) (376,049) (3,536,930) (1,569,340) (14,750,865)
------------- ------------- ------------ ------------- ------------- -------------
Net
increase/(decrease)... (415,942) ($3,906,593) (217,170) ($2,039,452) (175,237) ($1,653,120)
------------- ------------- ------------ ------------- ------------- -------------
Money Market
Sold.................... 15,657,903 $15,657,904 5,343,293 $5,343,292 18,481,987 $18,481,987
Reinvestment of
distributions.......... 104,038 104,037 79,461 79,462 154,866 154,866
Redeemed................ (11,442,301) (11,422,301) (7,130,509) (7,130,508) (20,558,807) (20,558,808)
------------- ------------- ------------ ------------- ------------- -------------
Net
increase/(decrease)... 4,319,640 $4,339,640 (1,707,755) ($1,707,754) (1,921,954) ($1,921,955)
------------- ------------- ------------ ------------- ------------- -------------
</TABLE>
73
<PAGE>
NORTH AMERICAN FUNDS
NOTES TO FINANCIAL STATEMENTS (unaudited)
--------------------------------------------------------------------------------
Note 3 - continued
Share activity for the year ended October 31, 1999, 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
Reinvestment of
distributions..........
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
(formerly International
Growth & Income)
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)
---------- ------------- ---------- ------------- ----------- -------------
Small Cap Growth
(formerly Emerging
Growth)
Sold.................... 22,245 $229,241 30,970 $308,715 27,355 $289,054
Reinvestment of
distributions..........
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
---------- ------------- ---------- ------------- ----------- -------------
Mid Cap Growth (formerly
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
---------- ------------- ---------- ------------- ----------- -------------
Large Cap Growth
(formerly 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
---------- ------------- ---------- ------------- ----------- -------------
Growth & 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
---------- ------------- ---------- ------------- ----------- -------------
</TABLE>
74
<PAGE>
NORTH AMERICAN FUNDS
NOTES TO FINANCIAL STATEMENTS (unaudited)
--------------------------------------------------------------------------------
Note 3 - continued
<TABLE>
<CAPTION>
Class A Class B Class C
--------------------------- ------------------------- ---------------------------
Shares Capital Shares Capital Shares Capital
------------- ------------- ------------ ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
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
------------- ------------- ------------ ------------ ------------- -------------
Core Bond (formerly
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)
------------- ------------- ------------ ------------ ------------- -------------
Municipal Bond (formerly
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>
75
<PAGE>
NORTH AMERICAN FUNDS
NOTES TO FINANCIAL STATEMENTS (unaudited)
-------------------------------------------------------------------------------
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, 2000:
<TABLE>
<CAPTION>
Purchases Sales
---------------------------- ---------------------------
Other
Portfolio U.S. Government Other Issues U.S. Government Issues
------------------------ --------------- ------------ --------------- -----------
<S> <C> <C> <C> <C>
International Small Cap. $89,302,463 $82,804,755
International Equity ... 7,958,683 10,885,825
Global Equity........... 84,132,626 105,544,607
Small Cap Growth........ 5,569,740 1,903,150
Mid Cap Growth.......... 88,441,907 86,995,478
Large Cap Growth........ 50,478,165 44,596,748
Tax-Sensitive Equity.... 253,735 4,131,477
Growth & Income......... 29,588,152 50,302,354
Equity-Income........... 20,544,318 55,370,035
Balanced................ $6,835,009 96,861,978 $32,630,045 86,684,050
Strategic Income........ 5,270,709 12,935,748 5,973,861 27,274,443
Core Bond............... 201,835 1,706,895 565,590 3,184,364
Municipal Bond.......... 1,971,177 4,424,513
U.S. Government
Securities............. 33,316,930 38,400,980
</TABLE>
At April 30, 2000, 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... $31,346,927 $(3,193,664) $1,491,090 $(4,684,754)
International Equity ..... 25,283,623 1,340,680 3,164,117 (1,823,437)
Global Equity............. 52,709,124 (2,352,627) 2,568,180 (4,920,807)
Small Cap Growth.......... 5,682,932 64,309 1,052,285 (987,976)
Mid Cap Growth............ 53,090,935 (5,527,942) 3,963,070 (9,491,012)
Large Cap Growth.......... 5,884,879 (137,638) 850,338 (987,976)
Tax-Sensitive Equity...... 3,938,850 1,300,978 1,407,731 (106,753)
Growth & Income........... 177,966,437 113,441,311 122,820,272 (9,378,961)
Equity-Income............. 66,248,173 1,986,260 6,204,490 (4,218,230)
Balanced.................. 55,470,923 (181,809) 20,842 (202,651)
Strategic Income.......... 42,135,603 (2,860,069) 425,827 (3,285,896)
Core Bond................. 10,401,978 (627,708) (52,425) (575,283)
Municipal Bond............ 9,762,628 (78,770) 123,881 (202,651)
U.S. Government
Securities............... 55,468,540 (2,240,940) 27,257 (2,268,197)
</TABLE>
76
<PAGE>
NORTH AMERICAN FUNDS
NOTES TO FINANCIAL STATEMENTS (unaudited)
-------------------------------------------------------------------------------
5. INVESTMENT ADVISORY AGREEMENTS. For the period November 01, 1999 through
March 10, 2000 the Fund maintained an Investment Advisory Agreement with CAM.
Effective March 13, 2000 the Fund maintains an Investment Advisory Agreement
with AGAM ("the Adviser"), pursuant to approval by the Fund's Board of
Trustees and Fund shareholders scheduled to take place in June 2000. 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 Between
$50,000,000 $200,000,000
First and and Excess over
Portfolio $50,000,000 $200,000,000 $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%
Small Cap Growth............. .950% .950% .950% .950%
Mid Cap Growth............... .925% .900% .875% .850%
Large Cap Growth............. .900% .850% .825% .800%
Tax-Sensitive Equity......... .850% .800% .775% .700%
Growth & Income.............. .725% .675% .625% .550%
Equity-Income................ .750% .650% .550% .550%
Balanced..................... .775% .725% .675% .625%
Strategic Income............. .750% .700% .650% .600%
Core Bond.................... .600% .600% .525% .475%
Municipal Bond............... .600% .600% .600% .600%
U.S. Government Securities... .600% .600% .525% .475%
Money Market................. .200% .200% .200% .145%
</TABLE>
* Prior to May 12, 1999, the fees for Equity-Income were .800% on the first
$50,000,000, .700% on the next $150,000,000, and .600% thereafter.
For the period ended April 30, 2000, AGAM paid aggregate subadvisory fees of
$1,475,902. In addition, AGAM retained net investment advisory fees of
$1,622,582 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 by
Portfolio Subadviser Subadviser by AGAM Adviser
--------- ---------- --------------- -------- ---------------
<S> <C> <C> <C> <C>
International Small Cap. $95,897 0.62% $65,607 0.42%
International Equity.... 65,013 0.50% 52,011 0.40%
Global Equity........... 171,437 0.49% 146,509 0.41%
Small Cap Growth........ 10,573 0.55% 7,689 0.40%
Mid Cap Growth.......... 137,791 0.53% 103,816 0.40%
Large Cap Growth........ 131,123 0.50% 106,929 0.40%
Tax-Sensitive Equity.... 15,643 0.45% 13,905 0.40%
Growth & Income......... 398,475 0.27% 597,593 0.40%
Equity-Income........... 158,313 0.36% 158,313 0.36%
Balanced................ 118,390 0.37% 127,101 0.40%
Strategic Income........ 79,406 0.35% 90,776 0.40%
Core Bond............... 12,750 0.23% 20,694 0.37%
Municipal Bond.......... 13,835 0.25% 19,549 0.35%
U.S. Government
Securities............. 60,054 0.23% 100,090 0.38%
Money Market............ 7,202 0.08% 12,003 0.13%
</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.
77
<PAGE>
NORTH AMERICAN FUNDS
NOTES TO FINANCIAL STATEMENTS (unaudited)
--------------------------------------------------------------------------------
Note 5 - continued
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........................................ 0.650% 0.650% 0.650%
------ ------- -------
Expense limitation.................................... 1.700% 1.700% 1.700%
------ ------- -------
Rule 12b-1 fees....................................... 0.350% 1.000% 1.000%
On December 15,1999, the expense limitation was increased from
1.550% to 1.70%
International Equity
Management fees....................................... 0.900% 0.900% 0.900%
Other expenses........................................ 0.650% 0.650% 0.650%
------ ------- -------
Expense limitation.................................... 1.550% 1.550% 1.550%
------ ------- -------
Rule 12b-1 fees....................................... 0.350% 1.000% 1.000%
On December 15,1999, the expense limitation was increased from
1.400% to 1.550%
Global Equity
Management fees....................................... 0.900% 0.900% 0.900%
Other expenses........................................ 0.620% 0.620% 0.620%
------ ------- -------
Expense limitation.................................... 1.520% 1.520% 1.520%
------ ------- -------
Rule 12b-1 fees....................................... 0.350% 1.000% 1.000%
On December 15,1999, the expense limitation was increased from
1.400% to 1.520%
Small Cap Growth (formerly Emerging Growth)
Management fees....................................... 0.950% 0.950% 0.950%
Other expenses........................................ 0.520% 0.520% 0.400%
------ ------- -------
Expense limitation.................................... 1.470% 1.470% 1.470%
------ ------- -------
Rule 12b-1 fees....................................... 0.350% 1.000% 1.000%
On December 15,1999, the expense limitation was increased from
1.350% to 1.470%
Mid Cap Growth (formerly Small/Mid Cap)
Management fees....................................... 0.925% 0.925% 0.925%
Other expenses........................................ 0.500% 0.500% 0.500%
------ ------- -------
Expense limitation.................................... 1.430% 1.430% 1.430%
------ ------- -------
Rule 12b-1 fees....................................... 0.350% 1.000% 1.000%
On December 15,1999, the expense limitation was increased from
1.325% to 1.43%
Large Cap Growth (formerly Growth 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%
On December 15,1999, the expense limitation was increased from
1.300% to 1.400%
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%
</TABLE>
78
<PAGE>
NORTH AMERICAN FUNDS
NOTES TO FINANCIAL STATEMENTS (unaudited)
--------------------------------------------------------------------------------
Note 5 -- continued
<TABLE>
<CAPTION>
Portfolio Class A Class B Class C
--------- ------- ------- -------
<S> <C> <C> <C>
Growth & Income
Management fees....................................... 0.725% 0.725% 0.725%
Other expenses........................................ 0.385% 0.385% 0.385%
------ ------ ------
Expense limitation.................................... 1.110% 1.110% 1.110%
------ ------ ------
Rule 12b-1 fees....................................... 0.350% 1.000% 1.000%
On December 15, 1999, the expense limitation was increased
from 0.990% to 1.11%
Equity-Income
Management fees....................................... 0.750% 0.750% 0.750%
Other expenses........................................ 0.370% 0.370% 0.370%
------ ------ ------
Expense limitation.................................... 1.120% 1.120% 1.120%
------ ------ ------
Rule 12b-1 fees....................................... 0.350% 1.000% 1.000%
On December 15, 1999, the expense limitation was increased
from 1.020% to 1.120%
Balanced
Management fees....................................... 0.775% 0.775% 0.775%
Other expenses........................................ 0.385% 0.385% 0.385%
------ ------ ------
Expense limitation.................................... 1.160% 1.160% 1.160%
------ ------ ------
Rule 12b-1 fees....................................... 0.350% 1.000% 1.000%
On December 15, 1999, the expense limitation was increased
from 1.040% to 1.160%
Strategic Income
Management fees....................................... 0.750% 0.750% 0.750%
Other expenses........................................ 0.450% 0.450% 0.450%
------ ------ ------
Expense limitation.................................... 1.200% 1.200% 1.200%
------ ------ ------
Rule 12b-1 fees....................................... 0.350% 1.000% 1.000%
On December 15, 1999, the expense limitation was increased
from 1.150% to 1.200%
Core Bond (formerly Investment Quality Bond)
Management fees....................................... 0.600% 0.600% 0.600%
Other expenses........................................ 0.350% 0.350% 0.350%
------ ------ ------
Expense limitation.................................... 0.950% 0.950% 0.950%
------ ------ ------
Rule 12b-1 fees....................................... 0.350% 1.000% 1.000%
On December 15, 1999, the expense limitation was increased
from 0.900% to 0.950%
Municipal Bond (formerly 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%
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........................................ 0.500% 0.500% 0.500%
------ ------ ------
Expense limitation.................................... 0.700% 0.700% 0.700%
------ ------ ------
On December 15, 1999, the expense limitation was increased from
0.500% to 0.700%
</TABLE>
79
<PAGE>
NORTH AMERICAN FUNDS
NOTES TO FINANCIAL STATEMENTS (unaudited)
-------------------------------------------------------------------------------
Note 5 - continued
In accordance with the Investment Advisory agreement, the Adviser, in addition
to providing advisory services, provides accounting and administrative
services for which AGAM charged $749,621 to the Fund, before reimbursement
based on expense limitations, for the period ended April 30, 2000.
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. The Fund has entered into an agreement with Fleet 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, 2000.
8. COMMITMENTS. At April 30, 2000, International Small Cap and International
Equity 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, 2000, were as follows:
FORWARD CONTRACTS
<TABLE>
<CAPTION>
Contracts In Net Unrealized
to Exchange Settlement Appreciation
Deliver For Date Value (Depreciation)
--------- -------- ---------- -------- --------------
<S> <C> <C> <C> <C> <C>
International Small Cap
Sales
Australian Dollars...... 12,804 $7,522 5/01/00 $7,478 $44
Australian Dollars...... 59,190 34,686 5/02/00 34,567 119
Canadian Dollars........ 8,255 5,566 5/01/00 5,554 12
Canadian Dollars........ 7,239 4,900 5/02/00 4,888 12
Euro.................... 30,198 27,667 5/02/00 27,454 213
Euro.................... 105,565 96,149 5/03/00 95,969 180
British Pounds.......... 14,072 22,269 5/02/00 21,910 359
British Pounds.......... 32,356 51,073 5/03/00 50,376 697
British Pounds.......... 44,036 69,369 5/04/00 68,563 806
British Pounds.......... 61,959 97,313 5/05/00 96,467 846
Hong Kong Dollars....... 519,971 66,757 5/02/00 66,755 2
Norwegian Krone......... 124,931 14,165 5/02/00 13,946 219
Norwegian Krone......... 52,436 5,852 5/03/00 5,853 (1)
Swedish Krona........... 889,775 100,099 5/02/00 99,238 861
Swedish Krona........... 258,565 28,938 5/03/00 28,838 100
-------- -------- ------
$632,325 $627,856 $4,469
-------- -------- ------
</TABLE>
<TABLE>
<CAPTION>
Net Unrealized
Contracts Settlement Appreciation
to Deliver In Exchange For Date Value (Depreciation)
---------- ---------------------------- ---------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C>
Purchases
$45,058 769,598 Swiss Francs 5/02/00 $44,416 ($642)
184,053 317,379 Swiss Francs 5/03/00 184,036 (17)
184,634 202,061 Euro 5/02/00 183,694 (940)
137,052 150,475 Euro 5/03/00 136,797 (255)
68,409 43,229 British Pounds 5/02/00 67,305 (1,104)
36,495 23,161 British Pounds 5/04/00 36,060 (435)
20,495 159,637 Hong Kong Dollars 5/02/00 20,495 --
367,852 39,060,747 Japanese Yen 5/01/00 361,623 (6,228)
77,974 8,289,442 Japanese Yen 5/02/00 76,743 (1,231)
82,065 422,876 Swedish Krona 5/02/00 81,293 (772)
145,934 1,298,696 Swedish Krona 5/03/00 144,847 (1,087)
165,616 282,251 Singapore Dollars 5/02/00 165,398 (219)
42,619 72,623 Singapore Dollars 5/03/00 42,556 (63)
---------- ---------- --------
$1,558,256 $1,545,263 ($12,993)
---------- ---------- --------
($8,524)
--------
</TABLE>
80
<PAGE>
NORTH AMERICAN FUNDS
NOTES TO FINANCIAL STATEMENTS (unaudited)
-------------------------------------------------------------------------------
Note 8 - continued
<TABLE>
<CAPTION>
In Net Unrealized
Contracts Exchange Settlement Appreciation
to Deliver For Date Value (Depreciation)
----------- ---------- ---------- ---------- --------------
<S> <C> <C> <C> <C> <C>
International Equity
--------------------
Sales
Euro................... 531,375 $509,217 6/12/00 $484,588 $24,628
Japanese Yen........... 307,416,297 2,869,100 5/08/00 2,851,107 17,993
Japanese Yen........... 46,500,000 451,785 6/19/00 434,549 17,236
Japanese Yen........... 60,621,970 583,545 7/21/00 569,737 13,808
---------- ---------- -------
$4,413,647 $4,339,981 $73,665
---------- ---------- -------
</TABLE>
<TABLE>
<CAPTION>
Net Unrealized
Contracts Settlement Appreciation
to Deliver In Exchange For Date Value (Depreciation)
---------- -------------------------- ---------- --------- --------------
<S> <C> <C> <C> <C> <C> <C>
Purchases
$37,306 40,344 Euro 5/02/00 36,679 ($627)
40,160 43,415 Euro 5/03/00 39,483 (677)
10,882 11,755 Euro 5/15/00 10,700 (182)
756,420 830,810 Euro 5/31/00 757,086 666
7,000 7,519 Euro 6/12/00 6,857 (143)
284,960 180,158 British Pounds 5/02/00 280,504 (4,456)
50,975 32,325 British Pounds 5/04/00 50,330 (645)
51,164 5,427,507 Japanese Yen 5/01/00 50,274 (890)
60,448 6,329,000 Japanese Yen 5/02/00 58,635 (1,813)
2,879,695 301,087,297 Japanese Yen 5/08/00 2,792,409 (87,286)
449,580 46,500,000 Japanese Yen 6/19/00 434,549 (15,031)
---------- --------- ---------
$4,628,590 4,517,506 ($111,084)
---------- --------- ---------
($37,419)
---------
</TABLE>
FUTURES CONTRACTS
Futures Contracts outstanding at April 30, 2000, were as follows:
<TABLE>
<CAPTION>
Net Unrealized
Aggregate Expiration Total Appreciation
Cost Date Value (Depreciation)
--------- ---------- -------- --------------
<S> <C> <C> <C> <C>
International Equity
--------------------
DAX Index (Short)................ $478,202 06/17/00 $508,710 $(30,508)
TOPIX Index (Short).............. 145,165 06/09/00 153,451 (8,286)
NIKKEI 300 Index (Short)......... 115,539 06/08/00 118,835 (3,296)
-------- -------- --------
$738,906 $780,996 $(42,090)
-------- -------- --------
</TABLE>
9. SUBSEQUENT EVENTS. On June 1, 2000 the shareholders of the Funds approved
the Investment Advisory Agreement between American General Asset Management
Corporation and North American Funds as to each series of the Fund. The
shareholders also voted to approve the Investment Subadvisory Agreement with
American General Investment Management, L.P. for Strategic Income, Municipal
Bond, Core Bond, U.S. Government Securities and Money Market.
On June 1, 2000 the shareholders of the Equity Income and Tax Sensitive Funds
voted to approve the acquisition of all of the assets and liabilities (net) of
the Equity Income and Tax Sensitive Funds by the Growth and Income Fund.
81
<PAGE>
NORTH AMERICAN FUNDS
NOTES TO FINANCIAL STATEMENTS (unaudited)
-------------------------------------------------------------------------------
OTHER INFORMATION
Shareholder Votes (Unaudited)
The following matters were put to a vote of shareholders of the Portfolios
shown:
Equity-Income Fund- On June 1, 2000 a special shareholder meeting was held at
which the shareholders approved the acquisition of all of its assets and
liabilities (net) by the Growth & Income Fund. At the meeting 2,929,849 votes
were cast in favor of the proposal, 97,082 were against the proposal, and
there were 240,117 abstentions with respect to the proposal.
Tax-Sensitive Fund- On June 1, 2000 a special shareholder meeting was held at
which the shareholders approved the acquisition of all of its assets and
liabilities (net) by the Growth & Income Fund. At the meeting 276,865 votes
were cast in favor of the proposal, 11,170 were against the proposal, and
there were 22,265 abstentions with respect to the proposal.
North American Funds- On June 1, 2000 a special shareholder meeting was held
at which the shareholders approved the Investment Advisory Agreement between
American General Asset Management Corporation and the North American Funds as
to each series of the Fund. At the meeting votes were cast as follows:
<TABLE>
<CAPTION>
In favor of proposal Against proposal Abstentions
-------------------- ---------------- -----------
<S> <C> <C> <C>
International
Small Cap...... 802,173 43,839 33,671
International
Equity......... 1,059,534 5,625 39,795
Global Equity... 2,522,896 156,898 139,153
Small Cap
Growth......... 242,376 38,006 24,608
Mid Cap Growth.. 1,449,582 95,053 73,275
Large Cap
Growth......... 1,335,281 97,171 70,879
Tax-Sensitive
Equity......... 207,993 10,274 13,871
Growth & Income. 5,342,207 36,690 138,805
Equity-Income... 2,455,059 48,613 123,434
Balanced........ 3,170,764 191,770 213,897
Strategic
Income......... 3,461,436 14,062 158,848
Core Bond....... 608,650 6,146 44,831
Municipal Bond.. 722,486 414 28,120
U.S. Government
Securities..... 3,751,948 22,773 89,883
Money Market.... 12,707,641 489,715 469,301
</TABLE>
North American Funds- On June 1, 2000 a special shareholder meeting was held
at which the shareholders approved the Investment Subadvisory Agreement
between American General Asset Management Corporation and American General
Investment Management, L.P. with respect to Strategic Income, Municipal Bond,
Core Bond, U.S. Government Securities and Money Market. At the meeting votes
were cast as follows:
<TABLE>
<CAPTION>
In favor of proposal Against proposal Abstentions
-------------------- ---------------- -----------
<S> <C> <C> <C>
Strategic
Income......... 3,450,364 23,630 160,351
Core Bond....... 614,031 5,824 39,765
Municipal Bond.. 725,934 414 24,672
U.S. Government
Securities..... 3,744,871 22,650 97,083
Money Market.... 12,674,445 511,708 480,504
</TABLE>
82
<PAGE>
Trustees
Alice T. Kane, Chairperson
Joseph T. Grause, Jr.
Dr. Judith L. Craven
Dr. Timothy J. Ebner
Judge Gustavo E. Gonzales, Jr.
William F. Devin
Kenneth J. Lavery
Dr. John E. Maupin, Jr.
Ben H. Love
Officers
Alice T. Kane, President and Chairperson
Joseph T. Grause, Jr., Vice President
Thomas J. Brown, Vice President and Treasurer
John I. Fitzgerald, Vice President and Secretary
John N. Packs, Vice President and
Assistant Treasurer
Distributor
American General Funds Distributors, Inc.
286 Congress Street
Boston, MA 02210
Adviser
American General Asset Management Corp.
286 Congress 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
160 Federal Street
Boston, MA 02110
North American Funds Shareholder Services
286 Congress Street
Boston, MA 02210
800-872-8037
<PAGE>
151NAF0400:90310
