[Cover art of compass omitted]
spine copy follows:
Expedition Funds Guiding Your Way 1999 Annual Report
<PAGE>
[logo omitted]
Table of Contents
Letter to Our Shareholders ................................1
Management's Discussion and Analysis ......................3
Statement of Net Assets ...................................9
Statement of Operations ..................................31
Statement of Changes in Net Assets .......................32
Financial Highlights .....................................34
Notes to Financial Statements ............................36
Independent Auditors' Report .............................44
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Shares of the Expedition Funds are not deposits of or obligations of, or
guaranteed or endorsed by Compass Bank, Compass Bancshares, Inc. or any of their
affiliates, or any bank, and are not obligations of, guaranteed by or insured by
the U.S. Government, the Federal Deposit Insurance Corporation, the Federal
Reserve Board, or any other government agency.
An investment in shares of the Funds involves investment risk, including the
possible loss of all or a portion of the principal invested, and the investment
return and value of shares of the Funds will fluctuate so that an investment,
when liquidated, may be worth more or less than the original cost.
Money market funds are neither insured nor guaranteed by the U.S. Government and
there can be no assurance that the Expedition Money Market Fund or Tax-Free
Money Market Fund will be able to maintain a stable net asset value of $1.00 per
share.
Compass Bank serves as investment advisor and custodian to the Expedition Funds,
and Compass Bank and various of its affiliates may provide various services to
the Funds, for which investment advisory, custodian and other services Compass
Bank and/or such other affiliates are entitled to receive compensation.
- --------------------------------------------------------------------------------
<PAGE>
Letter to Our Shareholders
Dear Shareholder:
The golden age of capitalism continued in 1999, with American companies and
American markets leading the way. The global recovery from last year's crises
has been due - in no small part - to an increasing recognition that U.S. models
of corporate and government fiscal policy are the best in the world.
For example, many once-stagnant European corporations are enjoying a resurgence
after imitating the restructuring trend that swept America during the 1990s. And
many foreign nations are gradually working to adopt our country's unique legal
and regulatory structure, which allows tremendous freedom in the markets while
maintaining the rule of law.
Domestically, economic growth was strong enough to cause the Federal Reserve
Board to raise short-term interest rates on two occasions - each time by one
quarter of one percent. While consumer and producer prices remained generally
under control, the Fed clearly viewed the combination of tight labor markets and
rising commodity prices as indicators of future inflationary trends.
These actions led to periods of volatility for the stock and bond markets.
However, any declines were relatively short-lived. And most analysts believe
that the Fed will hold back on any further increases for the calendar year to
help the economy absorb any potential "Y2K" related difficulties.
A YEAR OF GROWTH FOR THE EXPEDITION FUNDS
Fiscal 1999 was another year of positive developments for the Expedition Family
of Funds in both performance and asset growth.
Strong, steady management by our seasoned team of investment professionals
helped all four of our funds deliver solid performance, despite periodic
challenges from the overall markets.
Assets under management increased substantially during the year, rising from
$710 million at the end of fiscal 1998 to $888 million at October 31, 1999.
A NEW CENTURY, AND NEW OPPORTUNITIES
As we approach a new century, we recognize that technology and the increasingly
global nature of the economy will lead to more rapid rates of change - both
positive and negative. However, we believe that the fundamental principles of
investing will continue to
October 31, 1999 1
<PAGE>
Letter to Our Shareholders (concluded)
apply. These include a disciplined approach to the selection of individual
securities, the avoidance of temporary trends, and a long-term commitment to the
investment markets.
We are pleased that a growing number of individual and institutional
shareholders continue to place their confidence in the Expedition Funds
approach. And we are gratified to deliver this report of how well their
confidence has been rewarded this past year.
Thank you for your continued confidence in the Expedition Funds. We look forward
to continuing to serve your investment needs to the best of our ability in the
exciting years to come.
Sincerely,
/s/ Signature omitted
- -----------------------------------
Jan Koenig
Chief Investment Officer
Compass Bank Asset Management Group
Expedition Funds Investment Advisor
2 October 31, 1999
<PAGE>
Expedition Equity Fund
Management's Discussion and Analysis
For the twelve months ended October 31, 1999, the Expedition Equity Fund
Institutional Shares generated a total return of 30.87%. This compares to a
25.67% return for the S&P 500 Composite Stock Index and a 26.11% return for the
Lipper Large-Cap Core Funds Average. The Fund seeks to provide growth of
capital, with a secondary objective of income and pursues these objectives by
investing in a diversified portfolio of common stocks issued by mid and large
capitalization companies.
The U.S. stock market was volatile much of the fiscal year because of concerns
over higher interest rates, a weak dollar/yen relationship, balance of trade
issues, and the possibility of a slowdown in capital spending due to Y2K issues.
The economy, productivity, inflation reports and corporate profits continued to
impress investors favorably, however. Market strength was narrowly concentrated
in stocks of companies in industries with strong growth characteristics,
including computer technology, networking, data processing, telecommunications
equipment and services, consumer services, and capital goods.
These industries are well represented in the Expedition Equity Fund, resulting
in strong overall performance for the year.
Looking ahead, we see the economies of our nation's major trading partners
continuing to improve. In addition, the domestic economy and corporate profits
continue to grow steadily without evidence of significantly higher inflation.
Therefore, we remain positive on the outlook for the U.S. equity market, and for
the Expedition Equity Fund.
October 31, 1999 3
<PAGE>
Expedition Equity Fund
Management's Discussion and Analysis
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
E X P E D I T I O N E Q U I T Y F U N D
- ---------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- ---------------------------------------------------------------------------------------------------------
Annualized Annualized Annualized
1 Year 3 Year 5 Year Inception
Return Return Return to Date+
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Synthetic Institutional Shares 30.87% 25.64% 23.14% 21.98%*
- ---------------------------------------------------------------------------------------------------------
Synthetic Investment Shares - Class A 30.16% 25.48% 23.04% 23.83%*
- ---------------------------------------------------------------------------------------------------------
Synthetic Investment Shares - Class A w/load 24.96% 23.79% 22.06% 21.25%*
- ---------------------------------------------------------------------------------------------------------
Synthetic Investment Shares - Class B 29.54% 25.21% 22.88% 26.31%++
- ---------------------------------------------------------------------------------------------------------
Synthetic Investment Shares - Class B w/load 24.54% 24.57% 22.80% 21.31%++
- ---------------------------------------------------------------------------------------------------------
</TABLE>
Comparison of Change in the Value of a $10,000 Investment in the Expedition
Equity Fund, Synthetic Investment Shares Class A or Synthetic Institutional
Class or Synthetic Investment Shares Class B, versus the S&P 500 Composite
Index, the S&P 400 Mid-Cap Index, and the Lipper Growth & Income Funds
Objective, and the Lipper Large-Cap Core Funds Classification.
[Line Graph omitted]
Plot Points are as follows:
<TABLE>
<CAPTION>
ExpEquity ExpInvestment ExpClass S&P 500 S&P 400 LipGrowth LipLarge-Cap
--------- ------------- -------- ------- ------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
10/93 10,000 9,600 10,000 10,000 10,000 10,000 10,000
10/94 10,033 9,632 10,033 10,386 10,236 10,274 10,202
10/95 11,712 11,243 11,712 13,129 12,407 12,403 12,486
10/96 14,321 13,748 14,321 16,290 14,560 15,109 15,145
10/97 18,209 17,481 18,209 21,520 19,313 19,415 19,340
10/98 21,701 20,868 21,738 26,254 20,607 21,339 22,432
10/99 28,401 27,162 28,159 32,993 24,949 25,084 28,289
</TABLE>
* For periods prior to the inception of the Expedition Equity Fund on June 13,
1997, the performance data quoted represents past performance of the Equity
Model Common Trust Fund internally managed by an affiliate of the Expedition
Equity Fund's investment advisor, adjusted for the maximum fee and expenses
of the Institutional Shares of the Expedition Equity Fund applicable at the
inception of the Expedition Equity Fund. The Equity Model Common Trust Fund
was not registered under the Investment Company Act of 1940 and therefore,
was not subject to certain restrictions which may have adversely affected
performance.
Note: Performance data quoted represents past performance and is not predictive
of future performance. Actual return and principal value will fluctuate,
and shares when redeemed may be worth more or less than their original
cost.
+ Actual, not synthetic.
++ Cumulative Inception to Date.
4 October 31, 1999
<PAGE>
Expedition Bond Fund
Management's Discussion and Analysis
For the twelve months ended October 31, 1999, the Expedition Bond Fund
Institutional Shares generated a total return of (0.06)%. This compares to a
0.99% return for the Lehman Intermediate Gov't/Corp. Bond Index and a 1.07%
return for the Lipper Short-Intermediate U.S. Government Funds Average. The Fund
seeks to provide income with relative stability of principal.
Over the course of the fiscal year, yields in the fixed income markets rose
dramatically. For example, the yield on five-year Treasury Notes moved from
4.39% at the start of the period, to 5.94% at year-end.
This dramatic increase in rates was a result of two rate hikes by the Federal
Reserve Board, each of which pushed short-term rates up by 0.25%.
Back in the autumn of 1998, the Federal Reserve had lowered interest rates by a
total of 0.75% in response to several stresses in the global financial system.
These included the collapse of economies in Asia and Russia, as well as the
implosion of several large hedge funds.
However, global conditions quickly stabilized, commodity prices rose, and the
domestic economy continued to move along briskly. As a result, by June of 1999,
the Fed felt confident enough to begin moving rates up once again in order to
quell inflation. The net result was a volatile year for the bond markets.
Against this backdrop of volatility, the Expedition Bond Fund suffered somewhat
from its deliberately conservative approach. For much of the year, the market
reversed its previous flight to quality and began favoring lower-grade corporate
bonds. Since these types of instruments were not part of our portfolio, the Fund
underperformed its benchmark index. We do not regret this underperformance,
however, since we believe that our investors value quality over a modest yield
premium.
At fiscal year-end, the Fund's average maturity stood at 4.50 years -
approximately the same as that of its benchmark index. However, the Fund holds a
slightly larger proportion of government agency notes than the benchmark, in
order to seek somewhat higher yields.
Looking ahead, we believe that the continued strength of the domestic economy
could inspire the Fed to take action once again early in the new year.
Therefore, we plan to maintain our relatively conservative approach in order to
seek higher yields as they become available.
October 31, 1999 5
<PAGE>
Expedition Bond Fund
Management's Discussion and Analysis
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
E X P E D I T I O N B O N D F U N D
- -----------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
- -----------------------------------------------------------------------------------------------------------
Annualized Annualized Annualized
1 Year 3 Year 5 Year Inception
Return Return Return to Date+
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Synthetic Institutional Shares -0.06% 4.87% 5.97% 4.95%
- -----------------------------------------------------------------------------------------------------------
Synthetic Investment Shares - Class A -0.41% 4.69% 5.86% 5.37%
- -----------------------------------------------------------------------------------------------------------
Synthetic Investment Shares - Class A w/load -4.37% 3.26% 4.99% 4.80%
- ---------------------------------------------------------------------------------------------------------
Synthetic Investment Shares - Class B 1.30% 5.28% 6.22% 2.10%++
- -----------------------------------------------------------------------------------------------------------
Synthetic Investment Shares - Class B w/load -3.44% 4.39% 6.06% -2.69%++
- ---------------------------------------------------------------------------------------------------------
</TABLE>
Comparison of Change in the Value of a $10,000 Investment in the Expedition Bond
Fund, Synthetic Institutional Shares, Synthetic Investment Shares Class A or
Synthetic Investment Shares Class B, versus the Lehman Intermediate
Government/Corporate Index, and the Lipper Short/Intermediate U.S. Government
Objective.
[Line Graph omitted]
Plot Points are as follows:
<TABLE>
<CAPTION>
Institutional Investment Class B Corp. Index Gov't Objective
------------- ---------- ------- ----------- ---------------
<S> <C> <C> <C> <C> <C>
40/92 10,000 9,600 10,000 10,000 10,000
10/92 10,640 10,215 10,640 10,620 10,532
10/93 11,536 11,075 11,536 11,675 11,419
10/94 11,176 10,729 11,176 11,449 11,128
10/95 12,399 11,903 12,399 12,883 12,277
10/96 12,949 12,431 12,949 13,632 12,895
10/97 13,780 13,228 13,780 14,653 13,737
10/98 14,941 14,320 14,916 15,987 14,728
10/99 14,932 14,261 15,110 16,145 14,886
</TABLE>
Note: Performance data quoted represents past performance and is not predictive
of future performance. Actual return and principal value will fluctuate,
and shares when redeemed may be worth more or less than their original
cost.
+ Actual, not synthetic.
++ Cumulative Inception to Date.
6 October 31, 1999
<PAGE>
Expedition Money Market Fund
Management's Discussion and Analysis
For the twelve months ended October 31, 1999, the Expedition Money Market Fund
Investment Service Shares generated a total return of 4.56%. This compares to a
4.41% return for the Lipper Money Market Mutual Fund Average.
During fiscal year 1999, the Federal Reserve Board increased interest rates
twice in an effort to pre-empt inflation. The first of these actions took place
in June, 1999 when the Fed raised rates from 4.75% to 5.00%.
Unconvinced that this increase would be sufficient to cool the red-hot U.S.
economy, the markets continued to push yields still higher in the months that
followed.
Then, in August, market speculation was confirmed as the Federal Funds Target
Rate was increased by an additional 0.25%, to 5.25%.
As a result of these actions by the Fed, the yield on the three-month Treasury
Bill increased by 0.76% over the course of the year, while the yield on the
one-year Treasury Bill increased by 1.22%.
Throughout this period, the Expedition Money Market Fund continued to pursue a
conservative strategy that would position the Fund to take advantage of
increasing rates.
At fiscal year-end, the average maturity of the Fund was targeted between 60-65
days. Assets were concentrated in 30-90 day commercial paper and corporate notes
six months to one year were added where value could be found. The remainder of
the Fund was invested in overnight repurchase agreements.
Looking ahead, Fed policy is expected to remain neutral for the short-term, in
part due to concerns over potential Y2K related difficulties in the markets.
Once these Y2K concerns are past, however, we believe the expanding domestic
economy and tight labor markets could lead to additional rate hikes during the
new year. Therefore, we plan to keep our conservative strategy in place in the
months ahead.
October 31, 1999 7
<PAGE>
Expedition Tax-Free Money Market Fund
Management's Discussion and Analysis
For the period ended October 31, 1999, the Expedition Tax-Free Money Market Fund
Investment Service Shares generated a total return of 2.77%. This compares to a
2.60% return for the Lipper Tax Exempt Money Market Mutual Fund Average.
The Fund seeks to provide income, exempt from Federal income taxes, consistent
with stability of principal. The Fund pursues this investment objective by
investing in high-quality money market instruments maturing in 397 days or less.
During fiscal 1999, the U.S. economy continued to grow at a robust rate, while
inflation remained subdued. The early portion of the fiscal year was marked by
concerns over financial difficulties in Asia, Russia, and Brazil, and by the
failures of a few prominent hedge funds.
However, prompt action by the Federal Reserve Board helped to bring stability in
the markets. And for the remainder of the fiscal year many of the world's
economies rebounded strongly. One result of this global recovery was an increase
in oil and commodity prices spurred by rising demand.
The trend toward higher commodity prices, along with a tight domestic labor
market, led the Federal Reserve to boost interest rates twice during fiscal
1999. As a result, one year U.S. Treasury yields rose from 4.38% as of October
30, 1998 to 5.66% as of October 30, 1999. Municipal yields moved from 3.10% to
3.83% in the same time frame.
The Expedition Tax-Free Money Market Fund was able to take advantage of these
increases as they occurred, thanks to a strategy that kept much of the portfolio
in short-term instruments.
Looking ahead, the Federal Reserve has stated its desire to remain vigilant
against inflation. Therefore, with the U.S. economy continuing to grow and the
labor market tightening, additional rate hikes seem likely in the months ahead.
Even in the absence of Fed action, the bond markets appear ready to push rates
higher based on their own perceptions of inflationary trends.
In light of these conditions, we plan to maintain our conservative portfolio
strategy in order to capture higher yields as they become available.
8 October 31, 1999
<PAGE>
Expedition Equity Fund
Statement of Net Assets
Value
Description Shares (000)
- ------------------------------------------------------------------------------
Common Stocks - 99.5%
Airlines - 2.0%
Southwest Airlines 452,000 $ 7,599
- ------------------------------------------------------------------------------
Total Airlines 7,599
- ------------------------------------------------------------------------------
Auto Cars/Light Trucks - 2.5%
Ford Motor 168,025 9,220
- ------------------------------------------------------------------------------
Total Auto Cars/Light Trucks 9,220
- ------------------------------------------------------------------------------
Banks - 5.4%
J.P. Morgan 80,000 10,470
Mellon Financial 269,000 9,936
- ------------------------------------------------------------------------------
Total Banks 20,406
- ------------------------------------------------------------------------------
Broadcasting, Newspapers & Advertising - 4.6%
Omnicom Group 109,999 9,680
Univision Communications* 88,000 7,485
- ------------------------------------------------------------------------------
Total Broadcasting, Newspapers & Advertising 17,165
- ------------------------------------------------------------------------------
Computers & Services - 9.3%
EMC* 165,000 12,045
IBM 111,000 10,920
Sun Microsystems* 112,000 11,851
- ------------------------------------------------------------------------------
Total Computers & Services 34,816
- ------------------------------------------------------------------------------
Cosmetics/Toiletries - 5.5%
Allergan 86,000 9,234
Procter & Gamble 107,000 11,222
- ------------------------------------------------------------------------------
Total Cosmetics/Toiletries 20,456
- ------------------------------------------------------------------------------
Diversified Financial Services - 3.6%
Citigroup 250,000 13,531
- ------------------------------------------------------------------------------
Total Diversified Financial Services 13,531
- ------------------------------------------------------------------------------
Diversified Manufacturing - 6.7%
General Electric 108,000 14,641
Tyco International 260,000 10,384
- ------------------------------------------------------------------------------
Total Diversified Manufacturing 25,025
- ------------------------------------------------------------------------------
Drugs - 7.8%
Bristol-Myers Squibb 154,000 11,829
Merck 121,000 9,627
Pfizer 203,000 8,018
- ------------------------------------------------------------------------------
Total Drugs 29,474
- ------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
October 31, 1999 9
<PAGE>
Expedition Equity Fund
Statement of Net Assets
Value
Description Shares (000)
- --------------------------------------------------------------------------------
Electronic Components - 2.4%
Solectron* 122,001 $ 9,181
- --------------------------------------------------------------------------------
Total Electronic Components 9,181
- --------------------------------------------------------------------------------
Entertainment - 2.5%
Time Warner 137,000 9,547
- --------------------------------------------------------------------------------
Total Entertainment 9,547
- --------------------------------------------------------------------------------
Food, Beverage & Tobacco - 3.0%
Anheuser Busch 156,000 11,203
- --------------------------------------------------------------------------------
Total Food, Beverage & Tobacco 11,203
- --------------------------------------------------------------------------------
Gas/Natural Gas - 2.0%
Enron 190,000 7,588
- --------------------------------------------------------------------------------
Total Gas/Natural Gas 7,588
- --------------------------------------------------------------------------------
Insurance - 5.1%
American International Group 93,000 9,573
Marsh & McLennan Companies 120,000 9,487
- --------------------------------------------------------------------------------
Total Insurance 19,060
- --------------------------------------------------------------------------------
Internet Software - 1.7%
America Online* 50,000 6,484
- --------------------------------------------------------------------------------
Total Internet Software 6,484
- --------------------------------------------------------------------------------
Machinery - 1.1%
Caterpillar 75,000 4,144
- --------------------------------------------------------------------------------
Total Machinery 4,144
- --------------------------------------------------------------------------------
Metals-Aluminum - 2.3%
Alcoa 145,000 8,809
- --------------------------------------------------------------------------------
Total Metals-Aluminum 8,809
- --------------------------------------------------------------------------------
Networking Products - 5.4%
Adaptec* 183,000 8,235
Cisco Systems* 163,000 12,062
- --------------------------------------------------------------------------------
Total Networking Products 20,297
- --------------------------------------------------------------------------------
Oil Field Services - 4.1%
Halliburton 210,000 7,914
Schlumberger Limited 126,000 7,631
- --------------------------------------------------------------------------------
Total Oil Field Services 15,545
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
10 October 31, 1999
<PAGE>
Expedition Equity Fund
Statement of Net Assets
Shares/Face Value
Description Amt. (000) (000)
- --------------------------------------------------------------------------------
Petroleum Refining - 4.1%
Coastal 144,000 $ 6,066
Exxon 124,000 9,184
- --------------------------------------------------------------------------------
Total Petroleum Refining 15,250
- --------------------------------------------------------------------------------
Retail - 5.6%
Dayton Hudson 140,000 9,047
Wal-Mart Stores 212,000 12,018
- --------------------------------------------------------------------------------
Total Retail 21,065
- --------------------------------------------------------------------------------
Telephones & Telecommunications - 12.8%
Comverse Technology* 73,000 8,286
Lucent Technologies 150,000 9,638
MCI WorldCom* 123,000 10,555
Nortel Networks 184,000 11,397
SBC Communications 164,000 8,354
- --------------------------------------------------------------------------------
Total Telephones & Telecommunications 48,230
- --------------------------------------------------------------------------------
Total Common Stocks
(Cost $288,442) 374,095
- --------------------------------------------------------------------------------
Repurchase Agreement - 2.7%
J.P. Morgan, Inc., 5.17%, dated 10/31/99,
matures 11/01/99, repurchase price
$10,205,395 (collateralized by U.S.
Treasury Bond, par value $10,469,000,
6.125%, matures 08/15/29:
market value $10,405,618) $10,201 10,201
- --------------------------------------------------------------------------------
Total Repurchase Agreement
(Cost $10,201) 10,201
- --------------------------------------------------------------------------------
Total Investments - 102.2%
(Cost $298,643) 384,296
- --------------------------------------------------------------------------------
Other Assets and Liabilities, Net - (2.2%) (8,208)
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
October 31, 1999 11
<PAGE>
Expedition Equity Fund
Statement of Net Assets
Value
Description (000)
- --------------------------------------------------------------------------------
Net Assets:
Portfolio Capital of Institutional Shares
(unlimited authorization -- no par value)
based on 27,793,591 outstanding shares
of beneficial interest $237,364
Portfolio Capital of Investment Shares - Class A
(unlimited authorization -- no par value) based
on 359,028 outstanding shares of beneficial interest 3,875
Portfolio Capital of Investment Shares - Class B
(unlimited authorization -- no par value) based on
594,758 outstanding shares of beneficial interest 7,475
Accumulated net realized gain on investments 41,721
Net unrealized appreciation on investments 85,653
- --------------------------------------------------------------------------------
Total Net Assets -- 100.0% $376,088
- --------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Shares $13.09
- --------------------------------------------------------------------------------
Net Asset Value and Redemption
Price Per Share -- Investment Shares - Class A $13.06
- --------------------------------------------------------------------------------
Maximum Offering Price Per Share --
Investment Shares - Class A (1) $13.60
- --------------------------------------------------------------------------------
Net Asset Value and Redemption Price Per Share --
Investment Shares - Class B $12.96
- --------------------------------------------------------------------------------
(1) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 4.00%
* Non-income producing security
The accompanying notes are an integral part of the financial statements.
12 October 31, 1999
<PAGE>
Expedition Bond Fund
Statement of Net Assets
Face Value
Description Amt. (000) (000)
- --------------------------------------------------------------------------------
Asset-Backed Securities - 5.5%
First USA Credit Card Master Trust,
Ser 1998-9, Cl A (A)
5.280%, 01/18/04 $1,500 $1,425
MBNA Master Credit Card Trust,
Ser 1997-I, Cl A (A)
6.550%, 08/15/04 2,500 2,480
Proffitts Credit Card Master Trust,
Ser 1997-2, Cl A (A)
6.500%, 08/15/02 2,000 1,994
- --------------------------------------------------------------------------------
Total Asset-Backed Securities
(Cost $6,021) 5,899
- --------------------------------------------------------------------------------
Corporate Bonds - 21.4%
Banks - 2.8%
Banc One
6.400%, 08/01/02 2,000 1,983
Wells Fargo
6.625%, 07/15/04 1,000 994
- --------------------------------------------------------------------------------
Total Banks 2,977
- --------------------------------------------------------------------------------
Consumer Non-Durable - 3.3%
Archer Daniels Midland
6.250%, 05/15/03 1,500 1,485
Coca-Cola Enterprises
6.375%, 08/01/01 1,000 996
Sherwin-Williams
6.500%, 02/01/02 1,000 999
- --------------------------------------------------------------------------------
Total Consumer Non-Durable 3,480
- --------------------------------------------------------------------------------
Diversified Financial Services - 5.0%
Ford Motor Credit
6.125%, 04/28/03 2,000 1,953
5.750%, 02/23/04 1,500 1,434
Lehman Brothers Holdings
6.500%, 10/01/02 1,000 985
Morgan Stanley Dean Witter
5.625%, 01/20/04 1,000 954
- --------------------------------------------------------------------------------
Total Diversified Financial Services 5,326
- --------------------------------------------------------------------------------
Electrical Services - 0.9%
Georgia Power
5.500%, 12/01/05 1,000 925
- --------------------------------------------------------------------------------
Total Electrical Services 925
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
October 31, 1999 13
<PAGE>
Expedition Bond Fund
Statement of Net Assets
Face Value
Description Amt. (000) (000)
- --------------------------------------------------------------------------------
Leasing & Renting - 2.8%
International Lease Finance
6.250%, 10/15/00 $1,005 $ 1,003
5.750%, 01/15/03 2,000 1,935
- --------------------------------------------------------------------------------
Total Leasing & Renting 2,938
- --------------------------------------------------------------------------------
Retail - 5.7%
Dillard Department Stores
7.150%, 09/01/02 2,025 2,010
Wal-Mart Stores
6.500%, 06/01/03 1,520 1,516
7.500%, 05/15/04 2,500 2,584
- --------------------------------------------------------------------------------
Total Retail 6,110
- --------------------------------------------------------------------------------
Telephone Services - 0.9%
AT&T
5.625%, 03/15/04 1,000 955
- --------------------------------------------------------------------------------
Total Telephone Services 955
- --------------------------------------------------------------------------------
Total Corporate Bonds
(Cost $23,053) 22,711
- --------------------------------------------------------------------------------
U.S. Government Agency Mortgage-Backed Obligations - 3.7%
FHLMC Notes
6.800%, 03/19/07 1,000 1,007
5.750%, 03/15/09 1,500 1,399
6.625%, 09/15/09 1,515 1,507
- --------------------------------------------------------------------------------
Total U.S. Government Agency Mortgage-Backed Obligations
(Cost $3,988) 3,913
- --------------------------------------------------------------------------------
U.S. Government Agency Mortgage-Backed Bonds - 12.6%
FHLMC, Gold Pool #E00413 (A)
6.500%, 07/11/02 2,174 2,133
FHLMC, Gold Pool #E00475 (A)
7.500%, 05/17/01 927 940
FHLMC, Gold Pool #E00485 (A)
7.000%, 03/16/02 1,784 1,784
FHLMC, Gold Pool #E00532 (A)
6.500%, 10/12/03 1,502 1,474
FHLMC, Gold Pool #E00543 (A)
6.000%, 06/15/04 2,152 2,071
FHLMC, Gold Pool #E00584
6.000%, 11/01/13 3,226 3,104
FHLMC, Gold Pool #N98262
5.000%, 03/01/06 1,966 1,831
FNMA, Ser 1991-4, Cl E
8.250%, 09/25/05 46 46
- --------------------------------------------------------------------------------
Total U.S. Government Agency Mortgage-Backed Bonds
(Cost $13,736) 13,383
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
14 October 31, 1999
<PAGE>
Expedition Bond Fund
Statement of Net Assets
Face Value
Description Amt. (000) (000)
- --------------------------------------------------------------------------------
U.S. Government Obligations - 51.3%
U.S. Treasury Notes
6.250%, 08/31/00 $2,000 $ 2,011
6.125%, 09/30/00 2,000 2,009
5.625%, 11/30/00 3,000 2,999
6.250%, 04/30/01 3,000 3,023
6.625%, 06/30/01 3,000 3,039
7.500%, 11/15/01 2,000 2,064
6.250%, 01/31/02 3,500 3,529
7.500%, 05/15/02 4,000 4,151
6.375%, 08/15/02 3,000 3,038
6.250%, 02/15/03 4,000 4,036
5.500%, 05/31/03 1,500 1,478
5.750%, 08/15/03 4,500 4,466
6.000%, 08/15/04 2,000 2,006
7.250%, 08/15/04 3,000 3,150
6.500%, 08/15/05 3,000 3,056
6.875%, 05/15/06 1,000 1,039
6.500%, 10/15/06 1,000 1,018
6.250%, 02/15/07 3,000 3,014
6.125%, 08/15/07 2,500 2,490
6.000%, 08/15/09 3,000 2,997
- --------------------------------------------------------------------------------
Total U.S. Government Obligations
(Cost $54,754) 54,613
- --------------------------------------------------------------------------------
Repurchase Agreement - 4.4%
J.P. Morgan, Inc., 5.17%, dated 10/31/99,
matures 11/01/99, repurchase price
$4,656,005 (collateralized by U.S. Treasury
Bond, par value $4,776,000, 6.125%,
matures 08/15/29: market value $4,747,085) 4,654 4,654
- --------------------------------------------------------------------------------
Total Repurchase Agreement
(Cost $4,654) 4,654
- --------------------------------------------------------------------------------
Total Investments - 98.9%
(Cost $106,206) 105,173
- --------------------------------------------------------------------------------
Other Assets and Liabilities, Net - 1.1% 1,209
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
October 31, 1999 15
<PAGE>
Expedition Bond Fund
Statement of Net Assets
Value
Description (000)
- --------------------------------------------------------------------------------
Net Assets:
Portfolio Capital of Institutional Shares
(unlimited authorization -- no par value)
based on 10,252,155 outstanding shares of
beneficial interest $ 99,175
Portfolio Capital of Investment Shares - Class A
(unlimited authorization -- no par value)
based on 755,172 outstanding shares of
beneficial interest 11,678
Portfolio Capital of Investment Shares - Class B
(unlimited authorization -- no par value)
based on 22,190 outstanding shares of
beneficial interest 219
Accumulated net realized loss on investments (3,657)
Net unrealized depreciation on investments (1,033)
- --------------------------------------------------------------------------------
Total Net Assets -- 100.0% $106,382
- --------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Shares $9.65
- --------------------------------------------------------------------------------
Net Asset Value and Redemption
Price Per Share -- Investment Shares - Class A $9.64
- --------------------------------------------------------------------------------
Maximum Offering Price Per Share --
Investment Shares - Class A (1) $10.04
- --------------------------------------------------------------------------------
Net Asset Value and Redemption Price Per Share --
Investment Shares - Class B $9.64
- --------------------------------------------------------------------------------
(1) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 4.00%.
(A) Callable Security -- The call date is shown as the maturity date on the
Statement of Net Assets.
Cl -- Class
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
Ser -- Series
The accompanying notes are an integral part of the financial statements.
16 October 31, 1999
<PAGE>
Expedition Money Market Fund
Statement of Net Assets
Face Value
Description Amt. (000) (000)
- --------------------------------------------------------------------------------
Commercial Paper - 6.78%
Banks - 5.3%
Bank of America
5.810%, 01/06/00 $5,000 $ 4,947
5.030%, 01/24/00 3,000 2,965
Wachovia
5.750%, 02/10/00 1,000 984
Wells Fargo
5.930%, 02/11/00 3,000 2,950
Zions Bancorp
5.900%, 01/19/00 5,000 4,935
- --------------------------------------------------------------------------------
Total Banks 16,781
- --------------------------------------------------------------------------------
Broker/Dealers - 8.7%
Goldman Sachs
5.810%, 02/02/00 5,000 4,925
5.960%, 02/08/00 5,000 4,918
5.960%, 02/18/00 4,000 3,928
Merrill Lynch
5.300%, 11/01/99 4,000 4,000
Morgan Stanley Dean Witter
5.920%, 01/19/00 3,000 2,961
5.990%, 01/26/00 5,000 4,928
5.810%, 01/28/00 2,000 1,972
- --------------------------------------------------------------------------------
Total Broker/Dealers 27,632
- --------------------------------------------------------------------------------
Diversified Financial Services - 16.3%
American General Finance
5.300%, 11/19/99 6,000 5,984
5.320%, 12/06/99 4,000 3,979
Ford Motor Credit
5.280%, 11/16/99 2,000 1,996
5.280%, 12/29/99 5,000 4,957
General Electric Capital
5.310%, 11/23/99 5,000 4,984
5.330%, 12/14/99 5,000 4,968
GMAC
5.250%, 11/15/99 5,000 4,990
5.270%, 12/17/99 5,000 4,966
Transamerica Finance
5.230%, 11/02/99 5,000 4,999
5.320%, 11/05/99 3,000 2,998
5.300%, 11/09/99 3,000 2,996
5.320%, 11/09/99 4,000 3,995
- --------------------------------------------------------------------------------
Total Diversified Financial Services 51,812
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
October 31, 1999 17
<PAGE>
Expedition Money Market Fund
Statement of Net Assets
Face Value
Description Amt. (000) (000)
- --------------------------------------------------------------------------------
Electrical Services - 5.3%
General Electric
5.320%, 12/10/99 $ 5,000 $ 4,971
5.290%, 12/23/99 5,000 4,962
Georgia Power
5.700%, 02/01/00 2,000 1,971
Southern California Edison
5.920%, 01/27/00 5,000 4,928
- --------------------------------------------------------------------------------
Total Electrical Services 16,832
- --------------------------------------------------------------------------------
Funding Corporations-Asset Backed - 21.8%
Centric Capital
5.360%, 11/16/99 3,640 3,632
5.340%, 11/30/99 5,000 4,978
5.950%, 01/14/00 5,000 4,939
Falcon Asset Securitization
5.880%, 01/18/00 7,000 6,911
6.120%, 01/18/00 3,000 2,960
Madison Funding
5.420%, 12/08/99 5,000 4,972
6.100%, 02/03/00 3,000 2,952
Preferred Receivables Funding
5.370%, 11/15/99 5,000 4,990
6.030%, 01/31/00 6,000 5,909
Receivables Capital
5.370%, 11/17/99 14,000 13,967
Riverwoods Funding
6.000%, 01/10/00 6,000 5,930
6.030%, 01/27/00 7,200 7,095
- --------------------------------------------------------------------------------
Total Funding Corporations-Asset Backed 69,235
- --------------------------------------------------------------------------------
Household Products - 1.6%
Clorox
5.270%, 11/24/99 5,000 4,983
- --------------------------------------------------------------------------------
Total Household Products 4,983
- --------------------------------------------------------------------------------
Personal Credit Institutions - 6.0%
Toyota Motor Credit
5.280%, 12/02/99 7,000 6,968
5.270%, 12/13/99 5,000 4,969
Xerox Credit
5.280%, 12/10/99 7,000 6,960
- --------------------------------------------------------------------------------
Total Personal Credit Institutions 18,897
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
18 October 31, 1999
<PAGE>
Expedition Money Market Fund
Statement of Net Assets
Face Value
Description Amt. (000) (000)
- --------------------------------------------------------------------------------
Utilities - 2.8%
National Rural
5.300%, 11/18/99 $5,000 $ 4,988
5.300%, 11/19/99 4,000 3,989
- --------------------------------------------------------------------------------
Total Utilities 8,977
- --------------------------------------------------------------------------------
Total Commercial Paper
(Cost $215,149) 215,149
- --------------------------------------------------------------------------------
Corporate Bonds - 19.6%
Banks - 2.3%
First Union
6.600%, 06/15/00 1,500 1,508
Norwest Corporation
7.125%, 04/01/00 1,050 1,058
6.750%, 05/12/00 4,855 4,891
- --------------------------------------------------------------------------------
Total Banks 7,457
- --------------------------------------------------------------------------------
Broker/Dealers - 2.1%
Bear Stearns
6.500%, 07/05/00 2,000 2,007
Merrill Lynch
6.700%, 08/01/00 2,000 2,011
Merrill Lynch MTN
6.380%, 07/18/00 2,500 2,509
- --------------------------------------------------------------------------------
Total Broker/Dealers 6,527
- --------------------------------------------------------------------------------
Diversified Financial Services - 6.5%
American General Finance
6.875%, 01/15/00 1,510 1,515
7.250%, 04/15/00 1,250 1,261
American General Finance MTN
6.580%, 08/07/00 1,000 1,004
Associates Corporation of North America
6.125%, 11/12/99 1,000 1,000
6.200%, 02/15/00 1,000 1,003
6.000%, 03/15/00 1,000 1,003
6.000%, 06/15/00 1,200 1,204
6.375%, 06/15/00 1,000 1,005
6.250%, 09/15/00 1,200 1,202
Associates Corporation of North America MTN
6.710%, 06/01/00 1,000 1,006
Ford Motor Credit
6.375%, 04/15/00 1,200 1,206
Ford Motor Credit MTN
7.450%, 04/13/00 1,000 1,007
6.840%, 06/05/00 2,365 2,379
The accompanying notes are an integral part of the financial statements.
October 31, 1999 19
<PAGE>
Expedition Money Market Fund
Statement of Net Assets
Face Value
Description Amt. (000) (000)
- --------------------------------------------------------------------------------
Diversified Financial Services (continued)
General Motors Acceptance
7.000%, 03/01/00 $2,000 $ 2,012
GMAC MTN
7.500%, 04/11/00 1,000 1,008
Norwest Financial MTN
6.050%, 11/19/99 1,850 1,851
- --------------------------------------------------------------------------------
Total Diversified Financial Services 20,666
- --------------------------------------------------------------------------------
Electrical Services - 1.7%
Alabama Power
6.000%, 03/01/00 1,500 1,504
Georgia Power
6.000%, 03/01/00 3,000 3,005
Southern California Edison
8.250%, 02/01/00 1,000 1,007
- --------------------------------------------------------------------------------
Total Electrical Services 5,516
- --------------------------------------------------------------------------------
Leasing & Renting - 4.5%
International Lease Finance
5.750%, 12/15/99 2,000 2,001
6.375%, 01/18/00 2,000 2,005
5.460%, 03/10/00 1,750 1,752
6.200%, 05/01/00 2,500 2,512
6.625%, 06/01/00 1,950 1,961
International Lease Finance MTN
6.640%, 02/01/00 2,000 2,008
6.180%, 06/01/00 1,000 1,000
6.630%, 06/01/00 1,000 1,005
- --------------------------------------------------------------------------------
Total Leasing & Renting 14,244
- --------------------------------------------------------------------------------
Personal Credit Institutions - 1.9%
Xerox Credit
5.113%, 03/21/00 2,000 2,000
5.320%, 03/31/00 4,000 4,000
- --------------------------------------------------------------------------------
Total Personal Credit Institutions 6,000
- --------------------------------------------------------------------------------
Tobacco, Food & Beverage - 0.6%
Philip Morris
7.125%, 12/01/99 1,751 1,754
- --------------------------------------------------------------------------------
Total Tobacco, Food & Beverage 1,754
- --------------------------------------------------------------------------------
Total Corporate Bonds
(Cost $62,164) 62,164
- --------------------------------------------------------------------------------
U.S. Government Agency Obligations - 5.1%
Student Loan Marketing Agency (A)
5.745%, 06/30/00 5,000 5,000
The accompanying notes are an integral part of the financial statements.
20 October 31, 1999
<PAGE>
Expedition Money Market Fund
Statement of Net Assets
Face Value
Description Amt. (000) (000)
- --------------------------------------------------------------------------------
U.S. Government Agency Obligations (continued)
Student Loan Mortgage Association (A)
5.415%, 12/16/99 $ 5,000 $ 5,000
5.575%, 01/20/00 3,000 3,000
5.775%, 02/17/00 3,000 3,000
- --------------------------------------------------------------------------------
Total U.S. Governement Agency Obligations
(Cost $16,000) 16,000
- --------------------------------------------------------------------------------
Bank Notes - 1.6%
Bank of America
5.800%, 01/20/00 5,000 5,000
- --------------------------------------------------------------------------------
Total Bank Notes
(Cost $5,000) 5,000
- --------------------------------------------------------------------------------
Mutual Funds - 2.4%
Financial Square Government Money Market
Fund #465 (A) 5.150% 7,716 7,716
- --------------------------------------------------------------------------------
Total Mutual Funds
(Cost $7,716) 7,716
- --------------------------------------------------------------------------------
Repurchase Agreement - 3.5%
J.P. Morgan, Inc., 5.17%, dated 10/31/99,
matures 11/01/99, repurchase price
$11,161,807 (collateralized by U.S. Treasury
Bond, par value $11,450,000, 6.125%,
matures 08/15/29: market value $11,380,678) 11,157 11,157
- --------------------------------------------------------------------------------
Total Repurchase Agreement
(Cost $11,157) 11,157
- --------------------------------------------------------------------------------
Total Investments - 100.0%
(Cost $317,186) 317,186
- --------------------------------------------------------------------------------
Other Assets and Liabilities, Net - 0.0% 43
- --------------------------------------------------------------------------------
Net Assets:
Portfolio Capital of Institutional Shares
(unlimited authorization -- no par value)
based on 130,795,828 outstanding shares
of beneficial interest 130,796
Portfolio Capital of Investment Service Shares
(unlimited authorization -- no par value)
based on 186,432,141 outstanding shares of
beneficial interest 186,432
Accumulated net realized gain on investments 1
- --------------------------------------------------------------------------------
Total Net Assets-- 100.0% $317,229
- --------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Shares $1.00
- --------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Investment Service Shares $1.00
- --------------------------------------------------------------------------------
(A) Variable Rate Security -- The rate reported on the Statement of Net Assets
is the rate in effect as of October 31, 1999.
MTN -- Medium Term Note
The accompanying notes are an integral part of the financial statements.
October 31, 1999 21
<PAGE>
Expedition Tax-Free Money Market Fund
Statement of Net Assets
Face Value
Description Amt. (000) (000)
- --------------------------------------------------------------------------------
Muncipal Bonds - 101.9%
Alabama - 4.4%
Alabama State Multi-Family Housing RB,
Rime Village Hoover Project,
Series A (A) (B) (E)
3.550%, 11/08/99 $1,200 $1,200
Alabama State Multi-Family Residential
Development RB, Series B (A) (B) (C)
3.500%, 11/08/99 1,725 1,725
Mobile, Industrial Development Pollution
Control RB, M & T Chemicals
Project (A) (B) (C)
3.675%, 11/08/99 1,000 1,000
- --------------------------------------------------------------------------------
Total Alabama 3,925
- --------------------------------------------------------------------------------
Arizona - 1.4%
Apache County, Industrial Development
Authority RB, Tucson Electrical
Power (A) (B) (C)
3.450%, 11/08/99 100 100
Pinal County, Industrial Development Authority
Pollution Control RB, Newmount Project,
Series A (A) (B) (C)
3.550%, 11/01/99 1,100 1,100
- --------------------------------------------------------------------------------
Total Arizona 1,200
- --------------------------------------------------------------------------------
Arkansas - 0.1%
Greystone, Tax Exempt Certificate
Trust Authority RB, Senior Certificate
of Beneficial Ownership Project (A) (B) (C)
3.640%, 11/08/99 109 109
- --------------------------------------------------------------------------------
Total Arkansas 109
- --------------------------------------------------------------------------------
Colorado - 3.1%
Denver City & County, Multi-Family Housing
Authority RB, Ogden Residence
Project (A) (B) (C)
3.600%, 11/01/99 300 300
SBC Metropolitan District, GO (A) (B) (C)
3.350%, 12/01/99 1,555 1,555
Summit County, Recreational Facilities
Authority RB, Copper Mountain
Project (A) (B) (C)
3.900%, 11/08/99 925 925
- --------------------------------------------------------------------------------
Total Colorado 2,780
- --------------------------------------------------------------------------------
District of Columbia - 1.4%
District of Columbia Multi-Family Housing RB,
Temple Courts Section 8 Project (D)
12.000%, 02/01/00 1,145 1,281
- --------------------------------------------------------------------------------
Total District of Columbia 1,281
- --------------------------------------------------------------------------------
Florida - 3.9%
Alachua County, Industrial Development RB,
Florida Convention Centers
Project (A) (B) (C)
3.900%, 11/08/99 450 450
The accompanying notes are an integral part of the financial statements.
22 October 31, 1999
<PAGE>
Expedition Tax-Free Money Market Fund
Statement of Net Assets
Face Value
Description Amt. (000) (000)
- --------------------------------------------------------------------------------
Florida (continued)
Florida State Multi-Family Housing
Authority RB, Country Club Project (A) (B)
4.000%, 11/08/99 $ 595 $ 595
Greystone, Tax Exempt Certificate Trust
Authority RB, Senior Certificate of
Beneficial Ownership Project (A) (B) (C)
3.640%, 11/08/99 165 165
Orange County, Industrial Development
Authority RB, Orlando Hawaiian
Motel (A) (B) (C)
3.750%, 04/01/00 330 330
Pinellas County, Health Facilities
Authority RB, Pooled Hospital Loan
Program (A) (B) (C)
3.500%, 11/01/99 1,200 1,200
Polk County, Industrial Development
Authority RB, Florida Convalescent Centers
Project (A) (B) (C)
3.900%, 11/08/99 100 100
University of Florida, Athletic Association
Florida Capital Improvement RB, University
of Florida Stadium Project (A) (B) (C)
3.750%, 11/01/99 600 600
- --------------------------------------------------------------------------------
Total Florida 3,440
- --------------------------------------------------------------------------------
Georgia - 2.8%
Fulton County, Development Authority RB,
Robert W. Woodruff Arts Center
Project, (A) (B) (C)
3.600%, 11/08/99 250 250
Greystone, Tax Exempt Certificate Trust
Authority RB, Senior Certificate of Beneficial
Ownership Project (A) (B) (C)
3.640%, 11/08/99 550 550
Macon-Bibb County, Hospital Authority RB,
Medical Center of Central Georgia
Project (A) (B) (C)
3.600%, 11/08/99 400 400
Savannah, Multi-Family Housing Authority RB,
Somerset Place Project, Series A (A) (B) (E)
3.550%, 11/08/99 400 400
Walton County, Industrial Development RB,
Walton Monroe Mills, Series B (A) (B) (C)
3.600%, 11/08/99 900 900
- --------------------------------------------------------------------------------
Total Georgia 2,500
- --------------------------------------------------------------------------------
Hawaii - 2.1%
Hawaii State Department Budget Finance RB,
Special Purpose Mortgage (A) (B) (C)
3.800%, 10/01/00 840 840
Hawaii State Department of Budget & Finance
Special Purpose RB, Queens Health System
Project, Series A (A) (B) (C)
3.550%, 11/08/99 1,000 1,000
- --------------------------------------------------------------------------------
Total Hawaii 1,840
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
October 31, 1999 23
<PAGE>
Expedition Tax-Free Money Market Fund
Statement of Net Assets
Face Value
Description Amt. (000) (000)
- --------------------------------------------------------------------------------
Illinois - 10.0%
Cook Country, Illinois Community Unit School
District Number 401 Elmwood Park, TAN
4.980%, 10/25/00 $1,000 $1,005
Illinois State Development Finance
Authority RB, AMR Pooled Finance Project,
Series A (A) (B) (C)
3.700%, 11/08/99 1,500 1,500
Illinois State Development Finance
Authority RB, Field Container
Project (A) (B) (C)
3.500%, 11/08/99 1,500 1,500
Illinois State Sales Tax RB, Series Y
5.000%, 06/15/00 690 695
Orland Properties, Industrial Development
Authority RB (A) (B) (C)
3.800%, 11/08/99 1,040 1,040
Radnor/East Peoria Project, Multi-Family
Housing RB (A) (B) (C)
3.800%, 11/08/99 625 625
Tinley Park, Special Assessment RB,
TownPointe Development Project (A) (B) (C)
3.500%, 11/08/99 2,500 2,500
- --------------------------------------------------------------------------------
Total Illinois 8,865
- --------------------------------------------------------------------------------
Indiana - 8.8%
Fort Wayne, Industrial Economic Development
Authority RB, Avery International
Project (A) (B) (C)
3.675%, 11/08/99 1,000 1,000
Huntington, Economic Development RB,
Indiana Allied Signal Inc.
Project (A) (B)
3.600%, 11/08/99 1,000 1,000
Indiana State Development Financial
Authority RB, Brebeuf Prep
School (A) (B) (C)
3.550%, 11/08/99 3,500 3,500
Lake Central, Indiana School District,
Tax Anticipation Warrants
3.600%, 12/31/99 1,500 1,500
Mishawaka, Waterworks RB, Series A, BAN (E)
4.250%, 08/11/00 800 800
- --------------------------------------------------------------------------------
Total Indiana 7,800
- --------------------------------------------------------------------------------
Iowa - 2.0%
Iowa State Higher Education Authority RB,
St. Ambrose University Project (A) (B) (C)
3.750%, 11/08/99 1,500 1,500
Iowa State Student Loan Liquidity
Corporation RB, Series A
4.100%, 12/01/99 300 300
- --------------------------------------------------------------------------------
Total Iowa 1,800
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
24 October 31, 1999
<PAGE>
Expedition Tax-Free Money Market Fund
Statement of Net Assets
Face Value
Description Amt. (000) (000)
- --------------------------------------------------------------------------------
Kansas - 1.1%
Greystone, Tax Exempt Certificate Trust
Authority RB, Senior Certificate of
Beneficial Ownership Project (A) (B) (C)
3.640%, 11/08/99 $ 81 $ 81
Wyandotte County, Series UUU, TAN
3.200%, 11/01/99 930 930
- --------------------------------------------------------------------------------
Total Kansas 1,011
- --------------------------------------------------------------------------------
Kentucky - 2.1%
Boone County, Pollution Control RB,
Cincinnati Gas & Electric
Project (A) (B) (C)
3.900%, 11/08/99 500 500
Jefferson County, Industrial Development
Authority RB,
Bel Knap Project (A) (B) (C)
3.700%, 11/08/99 1,347 1,347
- --------------------------------------------------------------------------------
Total Kentucky 1,847
- --------------------------------------------------------------------------------
Louisiana - 0.6%
Shreveport, GO
9.000%, 12/01/99 560 563
- --------------------------------------------------------------------------------
Total Louisiana 563
- --------------------------------------------------------------------------------
Maryland - 1.1%
Maryland State Health & Higher Educational
Facilities Authority RB, Barnesville
School Issue (A) (B) (C)
3.600%, 11/08/99 1,000 1,000
- --------------------------------------------------------------------------------
Total Maryland 1,000
- --------------------------------------------------------------------------------
Massachusetts - 1.1%
Massachusetts State Health Facilities
Authority RB, Framingham Union Hospital
Project, Series B (D)
8.500%, 07/01/00 455 477
New England, Education Student Loan
Marketing RB, Series H
4.750%, 12/01/99 500 500
- --------------------------------------------------------------------------------
Total Massachusetts 977
- --------------------------------------------------------------------------------
Michigan - 3.6%
Farwell, Area School District, SAN
4.500%, 09/19/00 1,100 1,102
Jackson County, Economic Development
Limited Obligation RB, Thrifty Leoni
Project (A) (B) (C)
3.675%, 11/08/99 1,000 1,000
McDonald Tax Exempt Mortgage Trust (A) (B) (C)
3.450%, 05/15/00 139 139
Michigan State Job Development Authority
RB, East Lansing Residential
Project (A) (B) (C)
3.750%, 11/08/99 900 900
- --------------------------------------------------------------------------------
Total Michigan 3,141
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
October 31, 1999 25
<PAGE>
Expedition Tax-Free Money Market Fund
Statement of Net Assets
Face Value
Description Amt. (000) (000)
- --------------------------------------------------------------------------------
Minnesota - 5.7%
Cohasset, Power & Light Project,
Series A, RB (A) (B) (C)
3.500%, 11/01/99 $ 700 $ 700
Minnesota State Capital Realty
Trust RB (A) (B) (C)
3.760%, 11/08/99 3,335 3,335
St. Paul, Port Authority Industrial RB,
Minnesota Divers Industrial
Project, Series 1 (A) (B) (C)
3.650%, 11/08/99 1,000 1,000
- --------------------------------------------------------------------------------
Total Minnesota 5,035
- --------------------------------------------------------------------------------
Mississippi - 0.4%
Mississippi State Higher Education RB,
Series B
6.000%, 01/01/00 350 351
- --------------------------------------------------------------------------------
Total Mississippi 351
- --------------------------------------------------------------------------------
Missouri - 7.6%
Clayton, Industrial Development Authority RB,
Bailey Court Project (A) (B) (C)
3.750%, 11/08/99 500 500
Jackson County, Industrial Development
Authority RB, YMCA Greater Kansas Project,
Series A (A) (B) (C)
3.650%, 11/01/99 100 100
Kansas City, Industrial Development
Authority RB, Cloverset Apartment
Program (A) (B) (C)
3.850%, 11/08/99 1,505 1,505
Missouri State, Health & Education Facilities
Authority RB, Francis R. Howell III Project,
Series E,
4.250%, 09/19/00 1,000 1,004
Missouri State, Health & Education Facilities
Authority RB, Pooled Hospital Loan Program
Project, Series A (A) (B)
3.600%, 11/08/99 1,500 1,500
Saint Louis County, Industrial Development
Authority RB, Schnuck Markets Kirkwood
Incorporated Project, (A) (B) (C)
3.675%, 11/08/99 900 900
Saint Louis, Grantor Trust RB, Series 1996-A,
COP, (A) (B) (C)
3.650%, 11/08/99 1,200 1,200
- --------------------------------------------------------------------------------
Total Missouri 6,709
- --------------------------------------------------------------------------------
New Hampshire - 1.0%
New Hamshire State Higher Education &
Health Facilities Authority RB (D)
9.750%, 12/01/99 885 916
- --------------------------------------------------------------------------------
Total New Hampshire 916
- --------------------------------------------------------------------------------
New Jersey - 0.5%
North Hudson, Sewer Authority, BAN
4.250%, 03/31/00 400 400
- --------------------------------------------------------------------------------
Total New Jersey 400
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
26 October 31, 1999
<PAGE>
Expedition Tax-Free Money Market Fund
Statement of Net Assets
Face Value
Description Amt. (000) (000)
- --------------------------------------------------------------------------------
New York - 0.1%
Rensselaer County, Industrial Development
Agency RB, Brunswick Senior Housing Project,
Series A (A) (B) (C)
3.600%, 11/01/99 $ 100 $ 100
- --------------------------------------------------------------------------------
Total New York 100
- --------------------------------------------------------------------------------
North Carolina - 0.7%
North Carolina State Municiple Power Agency RB,
Catawba Electric
10.250%, 01/01/00 330 334
Raleigh, North Carolina Packaging Facility,
Raleigh Packing Department Project, COP
6.400%, 01/01/00 285 286
- --------------------------------------------------------------------------------
Total North Carolina 620
- --------------------------------------------------------------------------------
Ohio - 3.3%
Bellevue, Hospital Facilities RB, Bellevue
Hospital Project (A) (B) (C)
3.700%, 09/01/00 370 370
Clermont County, Economic Development RB,
John Q-Hammons Project (A) (B) (C)
3.100%, 11/01/99 585 585
East Muskingum, Ohio Water Authority RB, BAN
4.320%, 06/22/00 400 401
McDonald Tax Exempt Mortgage Trust (A) (B) (C)
3.450%, 05/15/00 649 650
Salem, BAN
3.650%, 05/26/00 900 900
- --------------------------------------------------------------------------------
Total Ohio 2,906
- --------------------------------------------------------------------------------
Oregon - 4.7%
Clackamas County, Hospital Facilities RB,
Senior Living Facility - Mary Woods (A)
3.650%, 11/08/99 2,000 2,000
Medford, Hospital Facility Authority RB,
Rogue Valley Manor Continued Care Retirement
Project (A) (B) (C)
3.650%, 11/08/99 2,200 2,200
- --------------------------------------------------------------------------------
Total Oregon 4,200
- --------------------------------------------------------------------------------
Pennsylvania - 5.5%
Clarion County, Industrial Development
Authority RB, Meritcare Project,
Series A (A) (B) (C)
3.600%, 11/08/99 600 600
McDonald Tax Exempt Mortgage Trust (A) (B) (C)
3.450%, 05/15/00 139 139
Montgomery County, Higher Education &
Health Authority RB, Higher Education &
Health Loan Project, Series 96-A, (A) (B) (C)
3.600%, 11/08/99 200 200
The accompanying notes are an integral part of the financial statements.
October 31, 1999 27
<PAGE>
Expedition Tax-Free Money Market Fund
Statement of Net Assets
Face Value
Description Amt. (000) (000)
- --------------------------------------------------------------------------------
Pennsylvania (continued)
Scranton-Lackawanna, Health & Welfare
Authority RB, University of Scranton
Project (A) (B) (C)
3.900%, 11/01/99 $1,000 $1,000
Washington County, Industrial Development
Authority RB, Wetterau Finance Company
Project, (A) (B) (C)
3.700%, 11/08/99 900 900
York, General Pooled Finance Authority RB,
City of Reading Project, Series 96-A (A) (B)
3.450%, 11/08/99 2,000 2,000
- --------------------------------------------------------------------------------
Total Pennsylvania 4,839
- --------------------------------------------------------------------------------
South Carolina - 1.1%
Piedmont, Municipal Electric Power Agency
Authority RB, Series A (A) (B) (C)
3.500%, 11/08/99 700 700
Walhalla RB, Avondale Mills
Project (A) (B) (C)
3.600%, 11/08/99 300 300
- --------------------------------------------------------------------------------
Total South Carolina 1,000
- --------------------------------------------------------------------------------
South Dakota - 0.5%
South Dakota State Housing Developement
Authority RB, Homeownership Mortgage,
Series A
4.750%, 05/01/00 450 452
- --------------------------------------------------------------------------------
Total South Dakota 452
- --------------------------------------------------------------------------------
Tennessee - 2.1%
Franklin County, Tennesse Health &
Educational Facility RB, Saint
Andrews-Sewanee School Project (A) (B) (C)
3.450%, 11/08/99 1,000 1,000
Greystone, Tax Exempt Certificate Trust
Authority RB, Senior Certificate of
Beneficial Ownership Project (A) (B) (C)
3.640%, 11/08/99 615 615
Jackson County, Industrial Development Board RB,
Esselte Project, Series B (A) (B) (C)
3.650%, 11/01/99 200 200
- --------------------------------------------------------------------------------
Total Tennessee 1,815
- --------------------------------------------------------------------------------
Texas - 4.1%
Corpus Christi, Industrial Development
Authority, Texas Air Project (A) (B) (C)
3.750%, 02/01/00 315 315
Texas State Health Facilities Development RB,
Series 1985-A (A) (B) (C)
3.750%, 11/08/99 1,400 1,400
Waxahachie, Texas Industrial Development
Authority RB, Container Project (A) (B) (C)
3.630%, 11/08/99 1,950 1,950
- --------------------------------------------------------------------------------
Total Texas 3,665
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
28 October 31, 1999
<PAGE>
Expedition Tax-Free Money Market Fund
Statement of Net Assets
Face Value
Description Amt. (000) (000)
- --------------------------------------------------------------------------------
Virginia - 2.2%
Greystone, Tax Exempt Certificate
Trust Authority RB, Senior Certificate of
Beneficial Ownership Project (A) (B) (C)
3.640%, 11/08/99 $ 290 $ 290
Rockbridge County, Virginia Industrial
Development Authority RB,
Safeway Inc. (A) (B) (C)
3.550%, 08/01/00 1,660 1,660
- --------------------------------------------------------------------------------
Total Virginia 1,950
- --------------------------------------------------------------------------------
Washington - 3.7%
Washington State Economic Development
Finance Authority RB, Pioneer Human
Services Project, Series H (A) (B) (C)
3.600%, 11/01/99 1,285 1,285
Washington State Housing Finance Community
Non-Profit RB, Emerald Heights
Project, (A) (B) (C)
3.550%, 11/01/99 500 500
Washington State Housing Community Non-Profit
RB, Panorama City Project (A) (B) (C)
3.700%, 11/01/99 200 200
Washington State Housing Finance Community
Non-Profit RB, YMCA Columbia/
Willamette (A) (B) (C)
3.600%, 11/08/99 1,300 1,300
- --------------------------------------------------------------------------------
Total Washington 3,285
- --------------------------------------------------------------------------------
West Virginia - 1.4%
Putnam County, Industrial Development RB,
FMC Corporation Project (A) (B) (C)
3.800%, 11/08/99 1,200 1,200
- --------------------------------------------------------------------------------
Total West Virginia 1,200
- --------------------------------------------------------------------------------
Wisconsin - 7.3%
Ashwaubenon, BAN
3.600%, 12/01/99 600 600
Green Bay, Industrial Development RB,
Curative Rehab Center Project (A) (B) (C)
3.550%, 11/08/99 1,445 1,445
Marshall, School District, TRAN
4.120%, 08/25/00 950 951
Northern Ozaukee, School District, BAN
3.400%, 02/01/00 500 500
Slinger, School District, TRAN
4.040%, 09/27/00 1,000 1,000
Wisconsin State Health & Educational
Facilities Authority RB, Milwaukee
Protestant Home Project,
Series A (A) (B) (C)
3.600%, 11/08/99 2,000 2,000
- --------------------------------------------------------------------------------
Total Wisconsin 6,496
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
October 31, 1999 29
<PAGE>
Expedition Tax-Free Money Market Fund
Statement of Net Assets
Value
Description (000)
- --------------------------------------------------------------------------------
Wyoming - 0.4%
Cheyenne County, Economic Development RB,
Holiday Inn Project (A) (B) (C)
3.750%, 04/01/00 $390 $ 390
- --------------------------------------------------------------------------------
Total Wyoming 390
- --------------------------------------------------------------------------------
Total Municipal Bonds
(Cost $90,408) 90,408
- --------------------------------------------------------------------------------
Total Investments - 101.9%
(Cost $90,408) 90,408
- --------------------------------------------------------------------------------
Other Assets and Liabilities, Net -- (1.9%) (1,645)
- --------------------------------------------------------------------------------
Net Assets:
Portfolio Capital of Institutional Shares
(unlimited authorization -- no par value)
based on 28,875,365 outstanding shares of
beneficial interest 28,875
Portfolio Capital of Investment Service Shares
(unlimited authorization -- no par value)
based on 59,895,185 outstanding shares of
beneficial interest 59,895
Accumulated net realized loss on investments (7)
- --------------------------------------------------------------------------------
Total Net Assets -- 100.0% $88,763
- --------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Shares $1.00
- --------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Investment Service Shares $1.00
- --------------------------------------------------------------------------------
(A) Floating Rate Security -- the rate reported on the Statement of Net Assets
is the rate in effect on October 31, 1999. The date shown is the next
scheduled reset date.
(B) Put and Demand feature -- the date reported on the Statement of Net Assets
is the sooner of the maturity date or put date.
(C) Securities are held in conjunction with a letter of credit or other form of
credit enhancement from a major commercial bank or financial institution, or
government sponsored agency.
(D) Pre-Refunded Security -- the maturity date shown is the Pre-Refunded date.
(E) Securities are collateralized under agreement from FNMA.
BAN -- Bond Anticipation Note
COP -- Certificate of Participation
GO -- General Obligation
RB -- Revenue Bond
SAN -- School Anticipation Note
TAN -- Tax Anticipation Note
TRAN -- Tax and Revenue Anticipation Note
The accompanying notes are an integral part of the financial statements.
30 October 31, 1999
<PAGE>
Statement of Operations (000)
For the year ended October 31, 1999
<TABLE>
<CAPTION>
Expedition Expedition Expedition Expedition
Equity Bond Money Market Tax-Free Money
Fund Fund Fund Market Fund
---- ---- ---- -----------
<S> <C> <C> <C> <C>
Investment Income:
Dividends $ 3,528 $ -- $ -- $ --
Interest 212 6,462 15,651 2,527
-------- -------- -------- --------
Total investment income 3,740 6,462 15,651 2,527
Expenses:
Investment Advisory fees 2,571 822 1,212 295
Waiver of Investment Advisory fees -- (274) (678) (193)
Administrator fees 689 218 607 147
Waiver of Administrator fees -- -- (152) (37)
Transfer Agent fees 103 152 127 29
Custodian fees 69 22 61 16
Directors' fees 17 5 9 2
Registration fees 57 (56) 27 23
Professional fees 97 73 57 15
Printing fees 58 15 32 12
Shareholder Servicing fees --
Investment Service Shares -- -- 450 146
Distribution fees --
Investment Shares - Class A 8 22 -- --
Investment Shares - Class B 26 1 -- --
Amortization of organization costs 5 -- -- 5
Other fees 11 5 4 3
-------- -------- -------- --------
Net expenses 3,711 1,005 1,756 463
-------- -------- -------- --------
Investment income -- net 29 5,457 13,895 2,064
-------- -------- -------- --------
Net realized gain (loss) on
investments 41,739 (89) (2) (7)
Net change in unrealized
appreciation (depreciation)
of investments 45,700 (5,544) -- --
-------- -------- -------- --------
NET GAIN (LOSS) ON INVESTMENTS 87,439 (5,633) (2) (7)
-------- -------- -------- --------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS $ 87,468 $ (176) $ 13,893 $ 2,057
======== ======== ======== ========
</TABLE>
The accompanying notes are an integral part of the financial statements.
October 31, 1999 31
<PAGE>
Statement of Changes in Net Assets (000)
For the periods ended October 31,
Expedition
Equity
Fund
------------------------
Year Ended Year Ended
10/31/99 10/31/98
-------- --------
Operations:
Investment income -- net $ 29 $ 1,140
Net realized gain (loss) on investments 41,739 16,144
Net change in unrealized appreciation
(depreciation) of investments 45,700 28,082
--------- ---------
Net increase (decrease) in net assets resulting
from operations 87,468 45,366
--------- ---------
Distributions to Shareholders From:
Investment income -- net:
Institutional Shares (100) (1,525)
Investment Shares - Class A/Investment
Service Shares -- --
Investment Shares - Class B -- --
Net realized gain on investments:
Institutional Shares (15,469) (12,889)
Investment Shares - Class A/Investment
Service Shares (161) --
Investment Shares - Class B (2) --
--------- ---------
Total distributions (15,732) (14,414)
--------- ---------
Capital Share Transactions (2):
Institutional Shares:
Proceeds from sales 51,570 72,889
Reinvestment of distributions 15,498 246
Payments for redemptions (57,381) (58,339)
--------- ---------
Increase (decrease) in net assets from
Institutional Shares transactions 9,687 14,796
--------- ---------
Investment Shares - Class A and Investment
Service Shares (respectively):
Proceeds from sales 3,389 1,846
Reinvestment of distributions 153 1
Payments for redemptions (1,433) (81)
--------- ---------
Increase (decrease) in net assets from
Investment Shares - Class A and Investment
Service Shares (respectively) transactions 2,109 1,766
--------- ---------
Investment Shares - Class B
Proceeds from sales 7,712 --
Reinvestment of distributions 2 --
Payments for redemptions (239) --
--------- ---------
Increase in net assets from
Investment Shares - Class B 7,475 --
--------- ---------
Increase (decrease) in net assets from
capital share transactions 19,271 16,562
--------- ---------
Total increase (decrease) in net assets 91,007 47,514
--------- ---------
NET ASSETS AT BEGINNING OF PERIOD 285,081 237,567
--------- ---------
NET ASSETS AT END OF PERIOD $ 376,088 $ 285,081
========= =========
(1) Commenced operations on May 20, 1998.
(2) See note 4 in the notes to financial statements for additional information.
The accompanying notes are an integral part of the financial statements.
32 October 31, 1999
<PAGE>
<TABLE>
<CAPTION>
Expedition Expedition Expedition
Bond Money Market Tax-Free Money
Fund Fund Market Fund
---------------------- ------------------------ -------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/99 10/31/98 10/31/99 10/31/98 10/31/99 10/31/98(1)
-------- -------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Investment income -- net $ 5,457 $ 5,939 $ 13,895 $ 9,181 $ 2,064 $ 779
Net realized gain (loss) on investments (89) 544 (2) 7 (7) --
Net change in unrealized appreciation
(depreciation) of investments (5,544) 2,966 -- -- -- --
--------- --------- --------- --------- --------- ---------
Net increase (decrease) in net assets resulting
from operations (176) 9,449 13,893 9,188 2,057 779
--------- --------- --------- --------- --------- ---------
Distributions to Shareholders From:
Investment income -- net:
Institutional Shares (5,030) (5,215) (5,844) (2,424) (466) --
Investment Shares - Class A/Investment
Service Shares (416) (729) (8,050) (6,758) (1,598) (779)
Investment Shares - Class B (3) -- -- -- -- --
Net realized gain on investments:
Institutional Shares -- -- -- -- -- --
Investment Shares - Class A/Investment
Service Shares -- -- -- -- -- --
Investment Shares - Class B -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total distributions (5,449) (5,944) (13,894) (9,182) (2,064) (779)
--------- --------- --------- --------- --------- ---------
Capital Share Transactions (2):
Institutional Shares:
Proceeds from sales 18,496 21,515 507,343 177,765 48,856 --
Reinvestment of distributions 3,048 1,945 284 75 -- --
Payments for redemptions (22,452) (22,835) (479,528) (123,149) (19,981) --
--------- --------- --------- --------- --------- ---------
Increase (decrease) in net assets from
Institutional Shares transactions (908) 625 28,099 54,691 28,875 --
--------- --------- --------- --------- --------- ---------
Investment Shares - Class A and Investment
Service Shares (respectively):
Proceeds from sales 353 62 637,445 578,112 158,834 140,266
Reinvestment of distributions 265 389 1,324 1,618 14 1
Payments for redemptions (3,221) (14,136) (595,247) (584,475) (163,495) (75,725)
--------- --------- --------- --------- --------- ---------
Increase (decrease) in net assets from
Investment Shares - Class A and Investment
Service Shares (respectively) transactions (2,603) (13,685) 43,522 (4,745) (4,647) 64,542
--------- --------- --------- --------- --------- ---------
Investment Shares - Class B
Proceeds from sales 237 -- -- -- -- --
Reinvestment of distributions 3 -- -- -- -- --
Payments for redemptions (21) -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Increase in net assets from
Investment Shares - Class B 219 -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Increase (decrease) in net assets from
capital share transactions (3,292) (13,060) 71,621 49,946 24,228 64,542
--------- --------- --------- --------- --------- ---------
Total increase (decrease) in net assets (8,917) (9,555) 71,620 49,952 24,221 64,542
--------- --------- --------- --------- --------- ---------
NET ASSETS AT BEGINNING OF PERIOD 115,299 124,854 245,609 195,657 64,542 --
--------- --------- --------- --------- --------- ---------
NET ASSETS AT END OF PERIOD $ 106,382 $ 115,299 $ 317,229 $ 245,609 $ 88,763 $ 64,542
========= ========= ========= ========= ========= =========
</TABLE>
October 31, 1999 33
<PAGE>
Financial Highlights
For the periods ended October 31,
For a Share Outstanding Throughout each Period.
<TABLE>
<CAPTION>
Net Realized and Distributions Net Asset
Asset Value, Net Unrealized from Net Distribution Value,
Beginning Investment Gains or (Losses) Investment from End of
of Period Income on Investments Income Capital Gains Period
--------- ------ -------------- ------ ------------- ------
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Institutional Shares
1999 $10.55 -- 3.13 -- (0.59) $13.09
1998 9.39 0.06 1.67 (0.06) (0.51) 10.55
1997(1) 10.00 0.02 0.25 (0.02) (0.86) 9.39
Investment Shares - Class A
1999 $10.58 (0.03) 3.10 -- (0.59) $13.06
1998(2) 9.65 0.04 1.45 (0.05) (0.51) 10.58
Investment Shares - Class B
1999(3) $10.82 (0.04) 2.77 -- (0.59) $12.96
- ------------------------------------------------------------------------------------------------------------------------------------
Bond Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
1999 $10.15 0.49 (0.50) (0.49) -- $9.65
1998 9.85 0.51 0.30 (0.51) -- 10.15
1997(1) 9.69 0.19 0.16 (0.19) -- 9.85
Investment Shares - Class A
1999 $10.15 0.47 (0.51) (0.47) -- $9.64
1998 9.85 0.49 0.30 (0.49) -- 10.15
1997 9.77 0.53 0.08 (0.53) -- 9.85
1996 9.92 0.58 (0.15) (0.58) -- 9.77
1995 9.54 0.63 0.38 (0.63) -- 9.92
Investment Shares - Class B
1999(3)** $10.06 0.38 (0.17) (0.63) -- $9.64
- ------------------------------------------------------------------------------------------------------------------------------------
Money Market Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
1999 $1.00 0.05 -- (0.05) -- $1.00
1998 1.00 0.05 -- (0.05) -- 1.00
1997(4) 1.00 0.02 -- (0.02) -- 1.00
Investment Service Shares
1999 $1.00 0.05 -- (0.05) -- $1.00
1998 1.00 0.05 -- (0.05) -- 1.00
1997(5) 1.00 0.08 -- (0.08) -- 1.00
1996 1.00 0.04 -- (0.04) -- 1.00
1995 1.00 0.05 -- (0.05) -- 1.00
1994 1.00 0.03 -- (0.03) -- 1.00
- ------------------------------------------------------------------------------------------------------------------------------------
Tax-Free Money Market Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
1999(6) $1.00 0.02 -- (0.02) -- $1.00
Investment Service Shares
1999 $1.00 0.03 -- (0.03) -- $1.00
1998(7) 1.00 0.01 -- (0.01) -- 1.00
</TABLE>
* Annualized
** Per share amounts for the period are based on average outstanding shares.
+ Returns are for the period indicated and have not been annualized.
(1) Commenced operations on June 13, 1997.
(2) Commenced operations on November 24, 1997.
(3) Commenced operations on November 16, 1998.
(4) Commenced operations on June 9, 1997.
The accompanying notes are an integral part of the financial statements.
34 October 31, 1999
<PAGE>
<TABLE>
<CAPTION>
Ratio of Ratio of Net Ratio of Expenses
Net Assets Expenses Investment to Average Net Assets
Total End of to Average Income (loss) to (Excluding Waivers
Return+ Period(000) Net Assets Average Net Assets and Reimbursements)
------- ----------- ---------- ------------------ -------------------
- -------------------------------------------------------------------------------------------------------------------------
Equity Fund
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Institutional Shares
1999 30.87% $363,694 1.05% 0.04% 1.05%
1998 19.18% 283,170 1.08% 0.38% 1.11%
1997(1) 2.96% 237,567 1.09%* 0.53%* 1.09%*
Investment Shares - Class A
1999 30.16% $ 4,688 1.30% (0.21%) 1.30%
1998(2) 16.16% 1,911 1.29%* (0.14%)* 1.37%*
Investment Shares - Class B
1999(3) 26.31% $ 7,706 2.05%* (0.95%)* 2.05%*
- -------------------------------------------------------------------------------------------------------------------------
Bond Fund
- -------------------------------------------------------------------------------------------------------------------------
Institutional Shares
1999 (0.06%) $ 98,889 0.90% 5.00% 1.15%
1998 8.43% 104,953 0.94% 5.11% 1.13%
1997(1) 3.49% 101,224 1.10%* 5.05%* 1.11%*
Investment Shares - Class A
1999 (0.41%) $ 7,279 1.15% 4.75% 1.40%
1998 8.25% 10,346 1.10% 4.95% 1.25%
1997 6.41% 23,630 1.13% 5.46% 1.56%
1996 4.44% 44,552 1.08% 5.90% 1.58%
1995 10.94% 63,521 1.04% 6.51% 1.51%
Investment Shares - Class B
1999(3)** 2.10% $ 214 1.90%* 4.07%* 2.15%*
- -------------------------------------------------------------------------------------------------------------------------
Money Market Fund
- -------------------------------------------------------------------------------------------------------------------------
Institutional Shares
1999 4.83% $130,798 0.43% 4.73% 0.77%
1998 5.33% 102,699 0.43% 5.18% 0.66%
1997(4) 5.26% 48,006 0.43%* 5.22%* 0.70%*
Investment Service Shares
1999 4.56% $186,431 0.68% 4.47% 1.02%
1998 5.07% 142,910 0.68% 4.95% 0.91%
1997(5) 4.97% 147,651 0.73% 4.84% 0.85%
1996 4.95% 136,666 0.71% 4.85% 0.71%
1995 5.51% 141,434 0.56% 5.38% 0.66%
1994 3.29% 158,367 0.75% 3.26% 0.79%
- -------------------------------------------------------------------------------------------------------------------------
Tax-Free Money Market Fund
- -------------------------------------------------------------------------------------------------------------------------
Institutional Shares
1999(6) 1.69% $ 28,874 0.43%* 3.06%* 0.89%*
Investment Service Shares
1999 2.77% $ 59,889 0.68% 2.73% 0.95%
1998(7) 1.33% 64,542 0.68%* 2.95%* 0.78%*
</TABLE>
Ratio of Net Investment
Income (loss) to Average Net
Assets (Excluding Waivers Portfolio
and Reimbursements) Turnover Rate
------------------- -------------
- --------------------------------------------------------------------------------
Equity Fund
- --------------------------------------------------------------------------------
Institutional Shares
1999 0.04% 90.76%
1998 0.35% 54.19%
1997(1) 0.53%* 64.68%
Investment Shares - Class A
1999 (0.21%) 90.76%
1998(2) (0.22%)* 54.19%
Investment Shares - Class B
1999(3) (0.95%)* 90.76%
- --------------------------------------------------------------------------------
Bond Fund
- --------------------------------------------------------------------------------
Institutional Shares
1999 4.75% 39.57%
1998 4.92% 32.93%
1997(1) 5.04%* 69.09%
Investment Shares - Class A
1999 4.50% 39.57%
1998 4.80% 32.93%
1997 5.03% 69.09%
1996 5.40% 77.00%
1995 6.04% 79.00%
Investment Shares - Class B
1999(3)** 3.82%* 39.57%
- --------------------------------------------------------------------------------
Money Market Fund
- --------------------------------------------------------------------------------
Institutional Shares
1999 4.39% --%
1998 4.95% --
1997(4) 4.95%* --
Investment Service Shares
1999 4.13% --%
1998 4.73% --
1997(5) 4.72% --
1996 4.85% --
1995 5.28% --
1994 3.22% --
- --------------------------------------------------------------------------------
Tax-Free Money Market Fund
- --------------------------------------------------------------------------------
Institutional Shares
1999(6) 2.60%* --%
Investment Service Shares
1999 2.46% --%
1998(7) 2.85%* --
(5) During 1997, the Starburst Money Market Trust Shares were renamed the
Expedition Money Market Investment Service Shares.
(6) Commenced operations on April 14, 1999.
(7) Commenced operations on May 20, 1998.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
October 31, 1999 35
<PAGE>
Notes to Financial Statements
(1) ORGANIZATION
The Expedition Funds (the "Trust") are registered under the Investment Company
Act of 1940, as amended (the "1940 Act") as an open-end, management investment
company offering the following Funds as of October 31, 1999: the Expedition
Equity Fund (the "Equity Fund"), the Expedition Bond Fund (the "Bond Fund"), the
Expedition Money Market Fund (the "Money Market Fund"), and the Expedition
Tax-Free Money Market Fund (the "Tax-Free Money Market Fund") (collectively, the
"Funds"). Both the Expedition Equity and Bond Funds are registered to offer
three classes of shares, while both the Money Market and Tax-Free Money Market
Funds are registered to offer two classes of shares. The Equity and Bond Funds
offer Institutional Shares, Investment Shares - Class A (formerly Investment
Shares) and Investment Shares - Class B (formerly Class B Shares), and the Money
Market and Tax-Free Money Market Funds offer Institutional Shares and Investment
Service Shares. The assets of each Fund are segregated and a shareholder's
interest is limited to the funds in which shares are held. The investment
objectives, policies, and strategies of the Expedition Funds are described in
their prospectuses.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds which are in conformity with generally accepted accounting
principles.
Security Valuation -- Investment securities held by the Money Market Fund and
the Tax-Free Money Market Fund are stated at amortized cost, which approximates
market value. Under this valuation method, purchase discounts and premiums are
accreted and amortized ratably to maturity and are included in interest income.
Investments in securities held in the Equity and Bond Funds are valued as
follows: equity securities that are traded on a national securities exchange (or
reported on the NASDAQ national market system) are stated at the last quoted
sales price if readily available for such equity securities on each business
day; other equity securities traded in the over-the-counter market and listed
equity securities for which no sale was reported on that date are stated at the
last quoted bid price. Debt obligations exceeding sixty days to maturity for
which market quotations are readily available are valued at the mean of the most
recently quoted bid and asked price. Debt obligations with sixty days or less
remaining until maturity may be valued at their amortized cost. Restricted
securities for which quotations are not readily available are valued at fair
value using methods determined in good faith under general supervision of the
Board of Trustees (the "Trustees").
36 October 31, 1999
<PAGE>
Repurchase Agreements -- It is the policy of the Funds to require the custodian
bank to take possession, to have legally segregated in the Federal Reserve Book
Entry System, or to have segregated within the custodian bank's vault, all
securities held as collateral under repurchase agreement transactions.
Additionally, procedures have been established by the Funds to monitor, on a
daily basis, the market value of each repurchase agreement's collateral to
ensure that the value of collateral at least equals the repurchase price to be
paid under the repurchase agreement transaction.
The Funds will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed by
the Funds' Investment Advisor (the "Advisor") to be creditworthy pursuant to the
guidelines and/or standards reviewed or established by the Trustees. Risks may
arise from the potential inability of counterparties to honor the terms of the
repurchase agreement. Accordingly, the Funds could receive less than the
repurchase price on the sale of collateral securities.
Security Transactions and Investment Income -- Security transactions are
accounted for on the date the security is purchased or sold (trade date). Costs
used in determining realized gains and losses on the sale of investment
securities are those of the specific securities sold, adjusted for the accretion
and amortization of purchase discounts, and premiums during the respective
holding periods. Interest income is recorded on the accrual basis; dividend
income is recorded on the ex-dividend date.
Dividends and Distributions to Shareholders -- Distributions from net investment
income for the Bond Fund, the Money Market Fund and the Tax-Free Money Market
Fund are declared daily and paid monthly. The Equity Fund declares and pays
dividends from net investment income quarterly. Any net realized capital gains
will be distributed at least annually for all Funds. Dividends and distributions
are determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are primarily due to
differing treatments for deferral of wash sales losses and post-October losses.
Federal Taxes -- It is each Fund's policy to comply with the provisions of the
Internal Revenue Code of 1986 (Subchapter M), as amended (the "Code"),
applicable to regulated investment companies and to distribute to shareholders
each year substantially all of its income. Accordingly, no provisions for
federal tax are necessary.
October 31, 1999 37
<PAGE>
Notes to Financial Statements
At October 31, 1999, the Bond Fund, for federal tax purposes, had a capital loss
carryforward of $3,630,309, which will reduce the Fund's taxable income arising
from future net realized gain on investments, if any, to the extent permitted by
the Code, and thus will reduce the amount of any distributions to shareholders
which would otherwise be necessary to relieve the Fund of any liability for
federal tax. Pursuant to the Code, such capital loss carryforward will expire as
follows:
Expiration Amount
-----------------
Expiration Bond
Year Fund
---------- ----------
2002 $2,268,525
2003 558,610
2003 1,621
2005 738,192
2006 --
2007 63,361
When-Issued and Delayed Delivery Transactions -- The Funds may engage in
when-issued or delayed delivery transactions. The Funds record when-issued
securities on the trade date and maintain security positions such that
sufficient liquid assets will be available to make payment for the securities
purchased upon settlement. Securities purchased on a when-issued or delayed
delivery basis are marked to market daily and begin earning interest on the
settlement date.
Use of Estimates -- The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the amounts of assets, liabilities, expenses and
income reported in the financial statements. Actual results could differ from
those estimated.
Classes -- Class specific expenses are borne by that class. Income, non-class
specific expenses, and realized/unrealized gains and losses are allocated to the
respective classes on the basis of the relative daily net assets.
(3) INVESTMENT ADVISORY, ADMINISTRATION, DISTRIBUTION AND SERVICE AGREEMENTS
Investment Advisory Fee -- Compass Bank, the Trust's Investment Advisor,
receives for its services annual advisory fees equal to 0.75% of each of the
Bond and Equity Funds' and 0.40% of each of the Money Market and the Tax-Free
Money Market Funds' average daily net assets. The Advisor may voluntarily choose
to waive any portion of its fee. The Advisor can modify or terminate these
voluntary waivers at any time at its sole discretion.
38 October 31, 1999
<PAGE>
Investment Sub-Advisor -- Weiss, Peck & Greer, L.L.C. ("WPG") serves as the
Tax-Free Money Market Fund's investment sub-advisor under a sub-advisory
agreement (the "Sub-Advisory Agreement") with the Advisor. Under the
Sub-Advisory Agreement, WPG invests the assets of the Fund on a daily basis, and
continuously administers the investment program of the Fund.
WPG is entitled to a fee which is paid by the Advisor and which is calculated
daily and paid monthly, at an annual rate of: .075% of the Fund's average daily
net assets up to $150 million; .05% of the next $350 million of the Fund's
average daily net assets, .04% of the next $500 million in average daily net
assets; and .03% of the Fund's average daily net assets over $1 billion.
Administrative Fee -- The Trust and SEI Investments Mutual Funds Services (the
"Administrator"), a Delaware business trust, are parties to an administration
agreement (the "Agreement") dated June 9, 1997, under which the Administrator
provides the Trust with certain legal, accounting, and shareholder services for
an annual fee of .20% of the Funds' average daily net assets. The Administrator
may voluntarily waive its fee, subject to termination at any time by the
Administrator, to the extent necessary to limit the total operating expenses of
a Fund.
Distribution Fees -- The Trust and SEI Investments Distribution Co. (the
"Distributor") are parties to a Distribution Agreement dated June 9, 1997. The
Equity and Bond Funds have adopted Distribution Plans for Investment Shares -
Class A and Investment Shares -Class B. Under the terms of each Plan the Funds
pay the Distributor a monthly distribution fee at an annual rate of 0.25% of the
daily net assets of the Class A Shares and 1.00% of the Class B Shares, which
may be used by the Distributor to provide compensation for sales support and
distribution activities.
The Money Market and Tax-Free Money Market Funds have adopted and entered into a
Shareholder Service Plan and Agreement with the Distributor. Each Fund pays the
Distributor a monthly shareholder servicing fee at an annual rate of 0.25% of
the average daily net assets of each Fund's Investment Service Shares, which may
be used by the Distributor to provide compensation to service providers that
have agreed to provide certain shareholders support services for their customers
who own Investment Service Shares of the Funds.
Custodian Fees -- Compass Bank serves as the Funds' custodian. Their fee is
based on a rate of 0.02% of each Fund's average daily net assets for the period,
plus out-of-pocket expenses.
October 31, 1999 39
<PAGE>
Notes to Financial Statements
(4) Capital Share Transactions (000)
Expedition
Equity
Fund
------------------------
Year Ended Year Ended
10/31/99 10/31/98
---------- ----------
Institutional Shares:
Shares issued 4,230 7,204
Shares issued in lieu of cash distributions 1,439 23
Shares redeemed (4,704) (5,701)
-------- --------
Total Institutional Shares transactions 965 1,526
-------- --------
Investment Shares - Class A and Investment Service
Shares (respectively):
Shares issued 282 189
Shares issued in lieu of cash distributions 14 --
Shares redeemed (118) (8)
-------- --------
Total Investment Shares - Class A and Investment Service
Shares (respectively) transactions 178 181
-------- --------
Investment Shares - Class B:
Shares issued 614 --
Shares issued in lieu of cash distributions -- --
Shares redeemed (19) --
-------- --------
Total Investment Shares - Class B transactions 595 --
-------- --------
Net Increase (decrease) from Share transactions 1,738 1,707
======== ========
- --------------------------------------------------------------------------------
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended October 31, 1999, were as follows (000):
Equity Bond
Fund Fund
-------- --------
Purchases
Government......................... $ -- $29,173
Other.............................. $309,936 $11,954
Sales
Government......................... $ -- $31,416
Other.............................. $306,522 $15,678
40 October 31, 1999
<PAGE>
Expedition Expedition Expedition
Bond Money Market Tax-Free Money
Fund Fund Market Fund
---------------------- ---------------------- ----------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/99 10/31/98 10/31/99 10/31/98 10/31/99 10/31/98
- ---------- ---------- ---------- ---------- ---------- ----------
1,876 2,164 507,343 177,765 48,856 --
310 195 284 75 -- --
(2,271) (2,297) (479,528) (123,149) (19,981) --
-------- -------- -------- -------- -------- --------
(85) 62 28,099 54,691 28,875 --
-------- -------- -------- -------- -------- --------
35 7 637,445 578,112 158,834 140,266
27 39 1,324 1,618 14 1
(327) (1,425) (595,247) (584,475) (163,495) (75,725)
-------- -------- -------- -------- -------- --------
(265) (1,379) 43,522 (4,745) (4,647) 64,542
-------- -------- -------- -------- -------- --------
24 -- -- -- -- --
-- -- -- -- -- --
(2) -- -- -- -- --
-------- -------- -------- -------- -------- --------
22 -- -- -- -- --
-------- -------- -------- -------- -------- --------
(328) (1,317) 71,621 49,946 24,228 64,542
======== ======== ======== ======== ======== ========
- --------------------------------------------------------------------------------
At October 31, 1999, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes were not materially
different from amounts reported for financial reporting purposes. The aggregate
gross unrealized appreciation and depreciation for securities held by the Funds
at October 31, 1999, are as follows (000):
Equity Bond
Fund Fund
-------- --------
Aggregate gross unrealized
appreciation........................ $ 90,761 $ 1,440
Aggregate gross unrealized
depreciation........................ (5,108) (1,473)
-------- -------
Net unrealized appreciation
(depreciation)...................... $ 85,653 $(1,033)
======== =======
October 31, 1999 41
<PAGE>
Notes to Financial Statements
(6) ORGANIZATION COSTS AND TRANSACTIONS WITH AFFILIATES
Organization costs have been capitalized by the Funds and are being amortized
over sixty months commencing with the reorganization. In the event that any of
the initial shares of a Fund are redeemed by any holder thereof during the
period that such Fund is amortizing its organizational costs, the redemption
proceeds payable to the holder thereof by the Fund will be reduced by the
unamortized organizational costs in the same ratio as the number of initial
shares being redeemed bears to the number of initial shares outstanding at the
time of redemption.
Certain officers of the Trust are also officers of the Administrator and the
Distributor. Such officers are paid no fees by the Trust for serving as officers
of the Trust.
42 October 31, 1999
<PAGE>
Notice to Shareholders
For the year ended October 31, 1999 (Unaudited)
For shareholders that do not have a October 31, 1999 tax year end, this notice
is for informational purposes only. For shareholders with a October 31, 1999,
please consult your tax advisor as to the pertinence of this notice. For this
fiscal year ended October 31, 1999, each portfolio is designating the following
items with regard to distributions paid during the year.
<TABLE>
<CAPTION>
Long Term Ordinary Tax Exempt
Capital Gain Income Income Qualifying
Portfolio Distribution Distribution Distribution Total Dividends(1)
- --------- ------------ ------------ ------------ ----- ------------
<S> <C> <C> <C> <C> <C>
Bond Fund 0.00% 100.00% 0.00% 100.00% 0.00%
Equity Fund 35.94% 64.06% 0.00% 100.00% 32.69%
Money Market
Fund 0.00% 100.00% 0.00% 100.00% 0.00%
Tax-Free Money
Market Fund 0.00% 0.00% 100.00% 100.00% 0.00%
</TABLE>
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction and is reflected as a percentage of "Ordinary
Income Distributions."
October 31, 1999 43
<PAGE>
Independent Auditors' Report
The Board of Trustees and Shareholders of
Expedition Funds:
We have audited the accompanying statements of net assets of Expedition Funds
(the "Funds"), including the Equity Fund, Bond Fund, Money Market Fund, and
Tax-Free Money Market Fund as of October 31, 1999, and the related statements of
operations, statements of changes in net assets and financial highlights for the
periods presented. These financial statements and the financial highlights are
the responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and the financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1999 by correspondence with the custodians and brokers, and where
replies were not received, we performed other auditing procedures. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of the Funds as of
October 31, 1999, the results of their operations, the changes in their net
assets, and the financial highlights for the respective stated periods, in
conformity with generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
December 7, 1999
44 October 31, 1999
<PAGE>
Notes
<PAGE>
[logo omitted] Expedition Funds.
Investment Advisor and Custodian:
Compass Bank
15 South 20th Street
Birmingham, Alabama 35233
Distributor:
SEI Investments Distribution Co.
One Freedom Valley Drive
Oaks, Pennsylvania 19456
Transfer Agent:
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110
Servicing Agent:
Boston Financial Data Services, Inc.
Two Heritage Drive
Quincy, Massachusetts 02171
Independent Auditors:
Deloitte & Touche LLP
117 Campus Drive
Princeton, New Jersey 08540
Counsel:
Morgan, Lewis & Bockius LLP
1800 M Street, N.W.
Washington, D.C. 20036
EXP-F-011-04
