Expedition Funds Guiding Your Way 1999 Semi-Annual Report
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Table of Contents
Letter to Our Shareholders ............................... 1
Statement of Net Assets .................................. 3
Statement of Operation ...................................25
Statement of Changes in Net Assets .......................26
Financial Highlights .....................................28
Notes to Financial Statements ............................30
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.
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LETTER TO OUR SHAREHOLDERS
Dear Shareholder:
During the six-month period ended April 30, 1999, the Expedition Funds delivered
solid overall performance, aided by favorable market conditions and sound
portfolio management strategies.
MARKET OVERVIEW
The investment markets performed well during the period, virtually erasing the
fears and declines of previous quarters. Action by the Federal Reserve Board to
reduce short-term interest rates during the autumn of 1998 had its desired
effect, stabilizing the domestic stock and bond markets and paving the way for a
strong recovery.
By January, stocks had rebounded to their previous highs and continued to move
upward. Then, on March 29, stocks achieved a new milestone as the Dow Jones
Industrial Average closed above the once-unimaginable 10,000 mark for the first
time ever. Since that time, the markets have continued to move into record
territory. In keeping with current trends, the rally was strongest among the
largest and best-known stocks, while smaller stocks continued to suffer from a
lack of investor interest.
For bonds, the period proved to be one of solid gains. Initially, the prices of
U.S. Treasury securities benefited from a "flight to quality" during the worst
days of the autumn economic crisis. Then, as the crisis abated, U.S. Treasury
securities fell back to their previous price levels, as investors felt confident
enough to move back into corporate and asset-backed bonds.
In the money market sector, short-term issues saw their yields decline due to
the actions of the Federal Reserve Board, but they continued to offer returns
well above the current rate of inflation.
The outlook for the markets remains favorable, with inflation and interest rates
still under control despite rising employment levels and robust economic growth.
While there is ample cause for concern over stock valuations that far exceed
historical averages, it is hard not to remain optimistic about a market that
displays such strong upward momentum.
Strong Growth and Performance For our mutual fund family, the six-month period
was one of continued growth. Assets in the Expedition Funds grew to $851 million
during the period, an increase of 19.8% over their level on October 31, 1998.
APRIL 30, 1999 1
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LETTER TO OUR SHAREHOLDERS (CONCLUDED)
The performance of all four funds -- the Expedition Equity Fund, the Expedition
Bond Fund, the Expedition Money Market Fund, and the Expedition Tax-Free Money
Market Fund -- was strong overall.
This performance is attributable to portfolio management strategies that
emphasize long-term performance and that remained in place during the worst of
the market downturns. Because of these strategies, the Expedition Funds were
well positioned to take advantage of the rally that followed.
THE REWARDS OF PATIENCE
At times, the ups and downs of the markets have shaken the confidence of even
the most seasoned investors. Therefore, it is gratifying that so many of our
shareholders -- including those who are relatively new to the markets --
remained calm and fully invested despite the recent uncertainties. The rewards
of this clear-headed approach now are apparent in the six-month performance of
the four Expedition Funds.
While no one can guarantee that investor confidence will not be tested again in
the future, we believe that a steady and prudent course remains the best
strategy to pursue on behalf of shareholders of the Expedition Funds.
We look forward to continuing on this course with you, and we thank you for
choosing to invest in the Expedition Funds.
Sincerely,
/s/ signature omitted
Jan Koenig
CHIEF INVESTMENT OFFICER
COMPASS BANK ASSET MANAGEMENT GROUP
EXPEDITION FUNDS INVESTMENT ADVISOR
2 APRIL 30, 1999
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Expedition Equity Fund
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION SHARES (000)
- --------------------------------------------------------------------------------
Common Stocks - 99.1%
Aircraft - 2.1%
United Technologies 51,825 $ 7,508
- --------------------------------------------------------------------------------
TOTAL AIRCRAFT 7,508
- --------------------------------------------------------------------------------
Automotive - 1.6%
DaimlerChrysler AG* 57,985 5,693
- --------------------------------------------------------------------------------
TOTAL AUTOMOTIVE 5,693
- --------------------------------------------------------------------------------
Banks - 5.3%
J.P. Morgan 59,545 8,024
Mellon Bank 147,885 10,990
- --------------------------------------------------------------------------------
TOTAL BANKS 19,014
- --------------------------------------------------------------------------------
Beauty Products - 6.7%
Allergan 72,965 6,558
Gillette 138,000 7,202
Procter & Gamble 108,000 10,132
- --------------------------------------------------------------------------------
TOTAL BEAUTY PRODUCTS 23,892
- --------------------------------------------------------------------------------
Broadcasting, Newspapers & Advertising - 4.3%
McGraw-Hill 123,000 6,796
Omnicom Group 120,000 8,700
- --------------------------------------------------------------------------------
TOTAL BROADCASTING, NEWSPAPERS & ADVERTISING 15,496
- --------------------------------------------------------------------------------
Chemicals - 2.2%
E.I. DuPont de Nemours 110,000 7,769
- --------------------------------------------------------------------------------
TOTAL CHEMICALS 7,769
- --------------------------------------------------------------------------------
Computer Communications Equipment - 6.1%
Cisco Systems* 104,000 11,862
EMC* 91,000 9,913
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TOTAL COMPUTER COMMUNICATIONS EQUIPMENT 21,775
- --------------------------------------------------------------------------------
Computers & Services - 5.6%
Compaq Computer 322,000 7,184
IBM 62,000 12,970
- --------------------------------------------------------------------------------
TOTAL COMPUTERS & SERVICES 20,154
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Drugs - 7.2%
Merck 110,000 7,727
Pfizer 52,000 5,983
Warner-Lambert 102,075 6,935
Watson Pharmaceuticals* 125,895 5,099
- --------------------------------------------------------------------------------
TOTAL DRUGS 25,744
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
APRIL 30, 1999 3
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EXPEDITION EQUITY FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION SHARES (000)
- --------------------------------------------------------------------------------
Entertainment - 4.1%
Carnival 187,000 $ 7,714
Time Warner 100,000 7,000
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TOTAL ENTERTAINMENT 14,714
- --------------------------------------------------------------------------------
Financial Services - 4.2%
Fannie Mae 99,000 7,023
Franklin Resources 203,000 8,120
- --------------------------------------------------------------------------------
TOTAL FINANCIAL SERVICES 15,143
- --------------------------------------------------------------------------------
Food, Beverage & Tobacco -- 1.5%
Anheuser Busch 72,000 5,265
- --------------------------------------------------------------------------------
TOTAL FOOD, BEVERAGE & TOBACCO 5,265
- --------------------------------------------------------------------------------
Gas/Natural Gas - 3.4%
Enron 51,000 3,838
Williams Companies 180,000 8,505
- --------------------------------------------------------------------------------
TOTAL GAS/NATURAL GAS 12,343
- --------------------------------------------------------------------------------
Household Products - 1.7%
Maytag 88,755 6,069
- --------------------------------------------------------------------------------
TOTAL HOUSEHOLD PRODUCTS 6,069
- --------------------------------------------------------------------------------
Insurance - 5.4%
Citigroup 160,000 12,040
Marsh & McLennan 93,385 7,150
- --------------------------------------------------------------------------------
TOTAL INSURANCE 19,190
- --------------------------------------------------------------------------------
Internet Software - 2.9%
America Online* 72,000 10,278
- --------------------------------------------------------------------------------
TOTAL INTERNET SOFTWARE 10,278
- --------------------------------------------------------------------------------
Machinery - 3.4%
General Electric 114,000 12,027
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TOTAL MACHINERY 12,027
- --------------------------------------------------------------------------------
Medical Products & Services - 1.9%
Biomet* 162,901 6,679
- --------------------------------------------------------------------------------
TOTAL MEDICAL PRODUCTS & SERVICES 6,679
- --------------------------------------------------------------------------------
Miscellaneous Manufacturing - 2.0%
Tyco International Limited 88,000 7,150
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TOTAL MISCELLANEOUS MANUFACTURING 7,150
- --------------------------------------------------------------------------------
Paper & Paper Products - 1.5%
Temple-Inland 80,730 5,570
- --------------------------------------------------------------------------------
TOTAL PAPER & PAPER PRODUCTS 5,570
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
4 APRIL 30, 1999
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EXPEDITION EQUITY FUND
STATEMENT OF NET ASSETS (UNAUDITED)
SHARES/FACE VALUE
DESCRIPTION AMT.(000) (000)
- --------------------------------------------------------------------------------
Petroleum & Fuel Products - 4.7%
Halliburton 201,000 $ 8,568
Schlumberger 128,000 8,176
- --------------------------------------------------------------------------------
TOTAL PETROLEUM & FUEL PRODUCTS 16,744
- --------------------------------------------------------------------------------
Petroleum Refining - 3.0%
Exxon 128,000 10,632
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TOTAL PETROLEUM REFINING 10,632
- --------------------------------------------------------------------------------
Retail - 7.8%
Dayton Hudson 156,000 10,501
Lowe's 134,870 7,114
Safeway* 194,950 10,515
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TOTAL RETAIL 28,130
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Telephones & Telecommunication - 10.5%
Lucent Technologies 195,000 11,724
MCI WorldCom* 125,065 10,279
SBC Communications 133,000 7,448
Sprint 79,770 8,181
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TOTAL TELEPHONES & TELECOMMUNICATION 37,632
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TOTAL COMMON STOCKS
(COST $255,267) 354,611
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Repurchase Agreement -- 0.8%
J.P. Morgan, Inc.
4.82%, dated 04/30/99, matures
05/03/99, repurchase price $2,767,000
(collateralized by U.S. Treasury Note,
market value $2,823,194) $2,767 2,767
- --------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $2,767) 2,767
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS - 99.9%
(COST $258,034) 357,378
- --------------------------------------------------------------------------------
Other Assets & Liabilities, Net -- 0.1% 507
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
APRIL 30, 1999 5
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EXPEDITION EQUITY FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION (000)
- --------------------------------------------------------------------------------
Net Assets:
Portfolio Capital of Institutional Shares (unlimited
authorization - no par value) based on
27,371,532 outstanding shares of beneficial interest $232,248
Portfolio Capital of Investment Shares - Class A
(unlimited authorization - no par value) based
on 280,848 outstanding shares of beneficial interest 2,875
Portfolio Capital of Investment Shares - Class B
(unlimited authorization - no par value) based on
167,504 outstanding shares of beneficial interest 2,075
Distributions in excess of net investment income (121)
Accumulated net realized gain on investments 21,464
Net unrealized gain on investments 99,344
- --------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $357,885
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER SHARE - INSTITUTIONAL SHARES $12.86
- --------------------------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE - INVESTMENT SHARES - CLASS A $12.86
- --------------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE -
INVESTMENT SHARES - CLASS A (1) $13.40
- --------------------------------------------------------------------------------
NET ASSET VALUE AND OFFERING PRICE PER SHARE -
INVESTMENT SHARES - CLASS B $12.80
- --------------------------------------------------------------------------------
(1) The offer 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.
6 APRIL 30, 1999
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EXPEDITION BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT.(000) (000)
- --------------------------------------------------------------------------------
Asset-Backed Securities - 9.9%
AT&T Universal Card Master Trust,
Ser 1995-2, Cl A (A)
5.950%, 10/17/00 $2,500 $ 2,519
First USA Credit Card Master Trust,
Ser 1998-9, Cl A (A)
5.280%, 01/20/04 1,500 1,467
MBNA Master Credit Card Trust,
Ser 1995-F, Cl A (A)
6.600%, 08/15/00 2,300 2,339
MBNA Master Credit Card Trust,
Ser 1997-I, Cl A (A)
6.550%, 08/15/04 2,500 2,578
Proffitts Credit Card Master Trust,
Ser 1997-2, Cl A (A)
6.500%, 08/15/02 2,000 2,031
- --------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(COST $10,817) 10,934
- --------------------------------------------------------------------------------
Corporate Bonds - 19.2%
Consumer Non-Durable - 4.9%
Archer Daniels Midland
6.250%, 05/15/03 1,500 1,521
Campbell Soup
5.625%, 09/15/03 1,875 1,868
Coca-Cola Enterprises
6.375%, 08/01/01 1,000 1,014
Sherwin-Williams
6.500%, 02/01/02 1,000 1,016
- --------------------------------------------------------------------------------
TOTAL CONSUMER NON-DURABLE 5,419
- --------------------------------------------------------------------------------
Diversified Finance - 4.1%
Ford Motor Credit
6.125%, 04/28/03 2,000 2,005
5.750%, 02/23/04 1,500 1,485
Lehman Brothers Holdings
6.500%, 10/01/02 1,000 1,001
- --------------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCE 4,491
- --------------------------------------------------------------------------------
Electrical Services - 0.9%
Georgia Power
5.500%, 12/01/05 1,000 969
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TOTAL ELECTRICAL SERVICES 969
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The accompanying notes are an integral part of the financial statements.
APRIL 30, 1999 7
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EXPEDITION BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- --------------------------------------------------------------------------------
Leasing & Renting - 2.7%
International Lease Finance
6.250%, 10/15/00 $1,005 $ 1,014
5.750%, 01/15/03 2,000 1,987
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TOTAL LEASING & RENTING 3,001
- --------------------------------------------------------------------------------
Retail - 5.7%
Dillard Department Stores
7.150%, 09/01/02 2,025 2,060
Wal-Mart Stores
6.500%, 06/01/03 1,520 1,566
7.500%, 05/15/04 2,500 2,684
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TOTAL RETAIL 6,310
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Telephone Services -- 0.9%
AT&T
5.625%, 03/15/04 1,000 990
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TOTAL TELEPHONE SERVICES 990
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TOTAL CORPORATE BONDS
(COST $20,908) 21,180
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U.S. Government Agency Obligations - 9.1%
FHLB Notes
5.125%, 09/15/03 2,000 1,963
FHLMC Notes
6.800%, 03/19/07 1,000 1,051
5.750%, 03/15/09 1,500 1,483
FNMA Notes
5.125%, 02/13/04 1,044 1,022
6.620%, 06/25/07 1,000 1,041
6.000%, 05/15/08 3,500 3,527
- --------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $10,102) 10,087
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U.S. Government Agency Mortgage-Backed Obligations - 13.6%
FHLMC, Gold Pool #E00413
6.500%, 01/01/11 2,464 2,490
FHLMC, Gold Pool #E00475
7.500%, 02/01/12 1,077 1,113
FHLMC, Gold Pool #E00485
7.000%, 05/01/12 2,022 2,070
FHLMC, Gold Pool #E00532
6.500%, 02/01/13 1,638 1,656
FHLMC, Gold Pool #E00584
6.000%, 11/01/13 3,391 3,367
The accompanying notes are an integral part of the financial statements.
8 APRIL 30, 1999
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EXPEDITION BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- --------------------------------------------------------------------------------
U.S. Government Agency Mortgage-Backed Obligations (CONTINUED)
FHLMC, Gold Pool #E00543
6.000%, 04/01/13 $2,296 $ 2,280
FHLMC, Gold Pool #N98262
5.000%, 03/01/06 1,997 1,915
FNMA, Ser 1991-4, Cl E
8.250%, 09/25/05 113 114
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TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS
(COST $14,965) 15,005
- --------------------------------------------------------------------------------
U.S. Treasury Obligations - 46.6%
U.S. Treasury Notes
6.375%, 05/15/00 1,000 1,015
6.250%, 08/31/00 3,000 3,047
6.125%, 09/30/00 2,000 2,029
5.625%, 11/30/00 3,000 3,026
6.250%, 04/30/01 3,000 3,066
6.625%, 06/30/01 3,000 3,092
7.500%, 11/15/01 2,500 2,638
6.250%, 01/31/02 3,500 3,596
7.500%, 05/15/02 4,000 4,256
6.375%, 08/15/02 3,000 3,101
6.250%, 02/15/03 3,000 3,104
5.500%, 05/31/03 1,500 1,514
5.750%, 08/15/03 5,000 5,094
7.250%, 08/15/04 3,000 3,266
6.500%, 08/15/05 3,000 3,180
6.875%, 05/15/06 1,000 1,085
6.500%, 10/15/06 1,000 1,065
6.250%, 02/15/07 3,000 3,156
6.125%, 08/15/07 1,000 1,045
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TOTAL U.S. TREASURY OBLIGATIONS
(COST $50,428) 51,375
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Repurchase Agreement - 0.7%
Morgan Stanley
4.50%, dated 04/30/99, matures
05/03/99, repurchase price $739,000
(collateralized by U.S. Treasury Bill,
market value $757,771) 739 739
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TOTAL REPURCHASE AGREEMENT
(COST $739) 739
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TOTAL INVESTMENTS - 99.1%
(COST $107,959) 109,320
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Other Assets & Liabilities, Net - 0.9% 973
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The accompanying notes are an integral part of the financial statements.
APRIL 30, 1999 9
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EXPEDITION BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION (000)
- --------------------------------------------------------------------------------
Net Assets:
Portfolio Capital of Institutional Shares (unlimited
authorization - no par value) based on 10,261,311
outstanding shares of beneficial interest $ 99,303
Portfolio Capital of Investment Shares - Class A
(unlimited authorization - no par value) based
on 870,024 outstanding shares of beneficial interest 12,782
Portfolio Capital of Investment Shares - Class B
(unlimited authorization - no par value) based
on 6,660 outstanding shares of beneficial interest 67
Distributions in excess of net investment income (1)
Accumulated net realized loss on investments (3,219)
Net unrealized gain on investments 1,361
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Total Net Assets - 100.0% $110,293
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Net Asset Value, Offering and Redemption Price
Per Share - Institutional Shares $9.90
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Net Asset Value and Redemption Price
Per Share -- Investment Shares - Class A $9.90
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Maximum Offering Price Per Share -
Investment Shares - Class A (1) $10.31
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Net Asset Value and Offering Price Per Share -
Investment Shares - Class B $9.90
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(1) The offer 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
FHLB - Federal Home Loan Mortgage Bank
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
Ser - Series
The accompanying notes are an integral part of the financial statements.
10 APRIL 30, 1999
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EXPEDITION BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- --------------------------------------------------------------------------------
Commercial Paper - 72.8%
Banks - 4.9%
Bankamerica
4.900%, 05/24/99 $5,000 $ 4,984
Wells Fargo
4.830%, 07/19/99 3,000 2,968
Zions Bancorp
4.960%, 06/18/99 7,000 6,954
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TOTAL BANKS 14,906
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Broker/Dealers - 13.7%
Bear Stearns
4.840%, 07/13/99 5,000 4,951
4.850%, 07/29/99 6,000 5,928
Goldman Sachs
4.840%, 05/26/99 7,000 6,977
4.780%, 06/22/99 5,000 4,966
Merrill Lynch
4.790%, 07/07/99 5,000 4,955
Morgan Stanley Dean Witter
4.810%, 06/08/99 7,000 6,964
4.760%, 06/21/99 7,000 6,953
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TOTAL BROKER/DEALERS 41,694
- --------------------------------------------------------------------------------
Diversified Finance -- 14.4%
American General Finance
4.810%, 06/07/99 5,000 4,975
Ford Motor Credit
4.820%, 06/04/99 5,000 4,977
General Electric Capital
4.830%, 05/28/99 5,000 4,982
4.830%, 06/09/99 5,000 4,974
GMAC
4.830%, 06/11/99 5,000 4,973
4.810%, 07/15/99 5,000 4,950
Transamerica Finance
4.840%, 05/05/99 4,000 3,998
4.820%, 05/12/99 5,000 4,993
4.830%, 05/18/99 5,000 4,989
- --------------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCE 43,811
- --------------------------------------------------------------------------------
Electrical Services - 13.0%
Alabama Power
4.780%, 05/14/99 5,000 4,991
4.780%, 05/21/99 3,946 3,936
General Electric
4.800%, 06/25/99 6,000 5,956
4.820%, 06/25/99 7,000 6,948
The accompanying notes are an integral part of the financial statements.
APRIL 30, 1999 11
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EXPEDITION BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT.(000) (000)
- --------------------------------------------------------------------------------
Electrical Services (CONTINUED)
Georgia Power
4.750%, 05/07/99 $5,000 $ 4,996
National Rural Utility
4.810%, 05/10/99 8,000 7,990
Southern California Edison
4.800%, 06/28/99 5,000 4,961
- --------------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 39,778
- --------------------------------------------------------------------------------
Funding Corporations - 18.0%
Centric Capital
4.870%, 05/11/99 7,000 6,991
4.810%, 07/12/99 5,000 4,952
Falcon Asset Securitization
4.820%, 05/25/99 6,000 5,981
Madison Funding
4.870%, 05/12/99 6,000 5,991
Preferred Receivables
4.820%, 05/06/99 4,000 3,997
4.860%, 06/10/99 5,000 4,973
Receivables Capital
4.870%, 05/07/99 10,000 9,992
Riverwood Funding
4.850%, 05/17/99 6,000 5,987
4.810%, 06/07/99 6,000 5,970
- --------------------------------------------------------------------------------
TOTAL FUNDING CORPORATIONS 54,834
- --------------------------------------------------------------------------------
Household Products - 3.9%
Clorox
4.810%, 06/23/99 5,000 4,965
4.780%, 06/30/99 7,000 6,944
- --------------------------------------------------------------------------------
TOTAL HOUSEHOLD PRODUCTS 11,909
- --------------------------------------------------------------------------------
Personal Credit Institutions - 3.3%
Toyota Motor Credit
4.790%, 05/06/99 5,000 4,997
4.760%, 06/24/99 5,000 4,964
- --------------------------------------------------------------------------------
TOTAL PERSONAL CREDIT INSTITUTIONS 9,961
- --------------------------------------------------------------------------------
Pharmaceuticals - 1.6%
Abbott Labs
4.750%, 05/13/99 5,000 4,992
- --------------------------------------------------------------------------------
TOTAL PHARMACEUTICALS 4,992
- --------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(COST $221,885) 221,885
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
12 APRIL 30, 1999
<PAGE>
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT.(000) (000)
- -------------------------------------------------------------------------------
Corporate Bonds - 18.8%
Banks - 2.9%
Norwest Corporation
7.125%, 04/01/00 $1,050 $ 1,067
6.750%, 05/12/00 3,855 3,917
Norwest Financial
6.000%, 08/01/99 1,000 1,001
6.680%, 09/15/99 1,150 1,154
6.050%, 11/19/99 1,850 1,860
- -------------------------------------------------------------------------------
TOTAL BANKS 8,999
- -------------------------------------------------------------------------------
Broker/Dealers - 0.7%
Bear Stearns
7.625%, 09/15/99 2,002 2,018
- -------------------------------------------------------------------------------
TOTAL BROKER/DEALERS 2,018
- -------------------------------------------------------------------------------
Diversified Finance - 7.0%
American General Finance
6.875%, 01/15/00 1,510 1,528
7.250%, 04/15/00 1,250 1,273
Associates Corporation of North America
7.500%, 05/15/99 2,000 2,001
7.350%, 07/06/99 1,000 1,003
6.375%, 08/15/99 1,000 1,003
6.750%, 10/15/99 2,000 2,015
6.125%, 11/12/99 1,000 1,005
6.200%, 02/15/00 1,000 1,007
6.000%, 03/15/00 1,000 1,006
Ford Motor Credit
7.250%, 05/15/99 1,000 1,001
7.900%, 05/17/99 2,200 2,202
7.950%, 05/17/99 1,000 1,001
8.875%, 06/15/99 2,110 2,118
6.375%, 04/15/00 1,200 1,212
General Motors Acceptance
7.000%, 03/01/00 2,000 2,029
- -------------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCE 21,404
- -------------------------------------------------------------------------------
Electrical Services - 1.9%
Alabama Power
6.000%, 03/01/00 1,500 1,509
Georgia Power
6.125%, 09/01/99 1,230 1,232
6.000%, 03/01/00 2,000 2,011
Southern California Edison
8.250%, 02/01/00 1,000 1,022
- -------------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 5,774
- -------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
April 30, 1999 13
<PAGE>
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- ------------------------------------------------------------------------------
Leasing & Renting - 3.7%
International Lease Finance
6.200%, 05/01/00 $2,500 $ 2,525
6.750%, 07/15/99 1,000 1,003
5.750%, 12/15/99 2,000 2,007
6.375%, 01/18/00 2,000 2,017
6.640%, 02/01/00 2,000 2,023
5.460%, 03/10/00 1,750 1,754
- -------------------------------------------------------------------------------
TOTAL LEASING & RENTING 11,329
- -------------------------------------------------------------------------------
Personal Credit Institutions -- 2.0%
Xerox Credit
5.113%, 03/21/00 2,000 1,999
5.320%, 03/31/00 4,000 4,000
- ------------------------------------------------------------------------------
TOTAL PERSONAL CREDIT INSTITUTIONS 5,999
- ------------------------------------------------------------------------------
Tobacco Products -- 0.6%
Philip Morris
7.125%, 12/01/99 1,751 1,770
- ------------------------------------------------------------------------------
TOTAL TOBACCO PRODUCTS 1,770
- ------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(COST $57,293) 57,293
- ------------------------------------------------------------------------------
Mutual Funds -- 1.2%
Financial Square Government Money
Market Fund #465 (A)
4.720%, 3,646 3,646
- ------------------------------------------------------------------------------
TOTAL MUTUAL FUNDS
(COST $3,646) 3,646
- ------------------------------------------------------------------------------
U.S. Government Agency Obligations - 4.4%
Student Loan Marketing Agency (A)
4.777%, 06/28/99 4,000 4,000
5.057%, 06/30/00 5,000 5,000
Student Loan Marketing Association
6.875%, 07/01/99 1,400 1,403
Student Loan Marketing Association (A)
5.107%, 06/17/99 3,000 3,000
- ------------------------------------------------------------------------------
TOTAL U.S.GOVERNMENT AGENCY OBLIGATIONS
(COST $13,403) 13,403
- ------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
14 APRIL 30, 1999
<PAGE>
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
Repurchase Agreement - 2.8%
J.P. Morgan, Inc.
4.82%, dated 04/30/99, matures
05/03/99, repurchase price $8,640,000
(collateralized by U.S. Treasury Note,
market value $8,812,882) $8,640 $ 8,640
- -------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $8,640) 8,640
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.0%
(COST $304,867) 304,867
- -------------------------------------------------------------------------------
Other Assets & Liabilities, Net - 0.0% 31
- -------------------------------------------------------------------------------
Net Assets:
Portfolio Capital of Institutional Shares (unlimited
authorization -- no par value) based on
134,948,589 outstanding shares of beneficial interest 134,949
Portfolio Capital of Investment Service Shares
(unlimited authorization -- no par value) based on
169,948,412 outstanding shares of beneficial interest 169,948
Accumulated net realized gain on investments 1
- -------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $304,898
- -------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER SHARE -- INSTITUTIONAL SHARES $1.00
- -------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER SHARE -- INVESTMENT SERVICES SHARES $1.00
- -------------------------------------------------------------------------------
(A) Variable Rate Security -- The rate reported on the Statement
of Net Assets is the rate in effect on April 30, 1999.
The accompanying notes are an integral part of the financial statements.
APRIL 30, 1999 15
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT.(000) (000)
- ------------------------------------------------------------------------------
Municipal Bonds - 97.1%
Alabama - 3.0%
Alabama State, Alabama Private Colleges RB,
Tuskegee University Project, Series A
4.550%, 09/01/99 $ 115 $ 116
Alabama State, Multi-Family Housing RB,
Rime Village Hoover Project, Series A (A) (B)
4.050%, 05/11/99 1,200 1,200
Mobile, Industrial Development Pollution Control RB,
M & T Chemicals Project (A) (B) (C)
4.125%, 05/11/99 1,000 1,000
- ------------------------------------------------------------------------------
TOTAL ALABAMA 2,316
- ------------------------------------------------------------------------------
Arkansas - 0.2%
Greystone, Tax Exempt Certificate Trust Authority RB,
Senior Certificate of Beneficial Ownership
Project (A) (B) (C)
4.130%, 05/11/99 121 121
- ------------------------------------------------------------------------------
TOTAL ARKANSAS 121
- ------------------------------------------------------------------------------
Colorado - 3.2%
SBC Metropolitan District, GO (A) (B) (C)
3.350%, 12/01/99 1,5 1,555
Summit County, Colorado Recreational Facilities
Authority RB, Copper Mountain Project (A) (B) (C)
3.350%, 05/11/99 925 925
- ------------------------------------------------------------------------------
TOTAL COLORADO 2,480
- ------------------------------------------------------------------------------
District of Columbia - 1.6%
District of Columbia Multi-Family Housing RB,
Temple Courts Section 8 Project (D)
12.000%, 02/01/00 1,060 1,226
- ------------------------------------------------------------------------------
TOTAL DISTRICT OF COLUMBIA 1,226
- ------------------------------------------------------------------------------
Florida - 4.2%
Alachua County, Industrial Development RB,
Florida Convention Centers Project (A) (B) (C)
3.350%, 05/11/99 450 450
Broward County, Multi-Family Housing RB,
Lake Park Association (A) (B) (C)
3.900%, 05/11/99 285 285
Florida State Multi-Family Housing Authority RB,
Country Club Project (A) (B) (C)
3.600%, 05/11/99 595 595
Greystone, Tax Exempt Certificate Trust Authority
RB, Senior Certificate of Beneficial Ownership
Project (A) (B) (C)
4.130%, 05/11/99 183 183
The accompanying notes are an integral part of the financial statements.
16 APRIL 30, 1999
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- ------------------------------------------------------------------------------
Florida (continued)
Orange County, Industrial Development Authority RB,
Orlando Hawaiian Motel (A) (B) (C)
3.200%, 10/01/99 $ 285 $ 285
Orange County, Multi-Family Housing Authority RB,
Oakwood Project (A) (B) (C)
3.550%, 10/01/99 1,000 1,000
Palm Beach County, Economic Development
Authority RB, YMCA Boynton Beach
Project (A) (B) (C)
3.550%, 05/11/99 500 500
- ------------------------------------------------------------------------------
TOTAL FLORIDA 3,298
- ------------------------------------------------------------------------------
Georgia -- 1.3%
Georgia State, GO, Series B (D)
6.700%, 07/01/99 300 308
Greystone, Tax Exempt Certificate Trust Authority RB,
Senior Certificate of Beneficial Ownership
Project (A) (B) (C)
4.130%, 05/11/99 613 613
Roswell, Multi-Family Housing Authority RB,
Post Canyon Project (A) (B)
4.050%, 05/11/99 100 100
- ------------------------------------------------------------------------------
TOTAL GEORGIA 1,021
- ------------------------------------------------------------------------------
Hawaii - 1.1%
Hawaii State Department Budget Finance RB,
Special Purpose Mortgage (A) (B) (C)
3.500%, 10/01/99 880 880
- ------------------------------------------------------------------------------
TOTAL HAWAII 880
- ------------------------------------------------------------------------------
Illinois - 15.3%
East Peoria, Multi-Family Housing RB (A) (B) (C)
4.250%, 05/11/99 665 665
Illinois State Development Finance Authority RB,
Field Container Project (A) (B) (C)
4.150%, 05/11/99 1,400 1,400
Illinois State Health Facilities Authority RB,
Lifelink Corporation Project, Series A (A) (B) (C)
4.000%, 05/11/99 2,000 2,000
Illinois State Health Facilities Authority RB,
Proctor Hospital Project (A) (B) (C)
4.000%, 05/11/99 3,700 3,700
Illinois State Multi-Family Housing Authority RB,
Park Plaza Center Project (A) (B) (C)
4.000%, 05/11/99 1,950 1,950
The accompanying notes are an integral part of the financial statements.
APRIL 30, 1999 17
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- ------------------------------------------------------------------------------
Illinois (CONTINUED)
Illinois State Sales Tax RB, Series K (D)
6.800%, 06/15/99 $ 200 $ 205
Orland Park, Illinois Industrial Development
Authority RB (A) (B) (C)
3.200%, 05/11/99 1,040 1,040
Winnebago & Boone Counties, School District,
Tax Anticipation Warrants
5.400%, 10/29/99 1,000 1,004
- ------------------------------------------------------------------------------
TOTAL ILLINOIS 11,964
- ------------------------------------------------------------------------------
Indiana - 5.2%
Fort Wayne, Industrial Economic Development
Authority RB, Avery International Project (A) (B) (C)
4.125%, 05/11/99 1,000 1,000
Huntington, Economic Development RB,
Indiana Allied Signal Inc. Project (A) (B)
4.150%, 05/11/99 1,000 1,000
Lake Central, Indiana School District,
Tax Anticipation Warrants
3.600%, 12/31/99 1,500 1,501
Mishawaka, Waterworks RB, Series A, BAN (E)
4.200%, 08/12/99 545 545
- ------------------------------------------------------------------------------
TOTAL INDIANA 4,046
- ------------------------------------------------------------------------------
Iowa - 2.0%
Iowa State Higher Education Authority RB,
St. Ambrose University Project (A) (B) (C)
4.150%, 05/11/99 1,500 1,500
Salix, Pollution Control RB, Midwest
Power Systems Inc. Project (A) (B)
4.100%, 05/11/99 100 100
- ------------------------------------------------------------------------------
TOTAL IOWA 1,600
- ------------------------------------------------------------------------------
Kansas - 1.6%
Greystone, Tax Exempt Certificate Trust Authority RB,
Senior Certificate of Beneficial Ownership
Project (A) (B) (C)
4.130%, 05/11/99 91 91
Hays, Sales Tax GO, Series B
3.200%, 09/01/99 270 270
Wyandotte County, Series UUU, TAN
3.200%, 11/01/99 930 930
- ------------------------------------------------------------------------------
TOTAL KANSAS 1,291
- ------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
18 APRIL 30, 1999
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT.(000) (000)
- ------------------------------------------------------------------------------
Kentucky - 5.8%
Boone County, Pollution Control RB,
Cincinnati Gas & Electric Project (A) (B) (C)
3.550%, 05/11/99 $ 500 $ 500
Jefferson County, Industrial Building RB,
Seven Counties Services Project (A) (B) (C)
4.000%, 05/11/99 2,680 2,680
Jefferson County, Industrial Development Authority RB,
Bel Knap Project (A) (B) (C)
3.050%, 05/11/99 1,347 1,347
- ------------------------------------------------------------------------------
TOTAL KENTUCKY 4,527
- ------------------------------------------------------------------------------
Louisiana -- 1.1%
Lafayette, Louisiana Public Improvement RB, Series B
10.000%, 05/01/99 285 285
Shreveport, GO
9.000%, 12/01/99 560 578
- ------------------------------------------------------------------------------
TOTAL LOUISIANA 863
- ------------------------------------------------------------------------------
Maryland - 2.6%
Howard County, Multi-Family Housing Authority RB,
Sherwood Crossing Project (A) (B)
3.850%, 06/01/99 1,000 1,000
Maryland State Health and Higher Educational Facilities
Authority RB, Barnesville School Issue (A) (B) (C)
4.050%, 05/11/99 1,000 1,000
- ------------------------------------------------------------------------------
TOTAL MARYLAND 2,000
- ------------------------------------------------------------------------------
Massachusetts - 2.8%
Brockton, BAN
4.000%, 05/18/99 600 600
Massachusetts State Industrial Finance Funding Agency RB,
Morton Hospital Medical Center (D)
8.750%, 07/01/99 395 406
New England, Education Loan Marketing RB,
Student Loan Project, Series E
5.000%, 07/01/99 1,150 1,152
- ------------------------------------------------------------------------------
TOTAL MASSACHUSETTS 2,158
- ------------------------------------------------------------------------------
Michigan - 3.5%
Jackson County, Economic Development Limited
Obligation RB, Thrifty Leoni Project (A) (B) (C)
4.125%, 05/11/99 1,000 1,000
McDonald Tax-Exempt Mortgage Trust (A) (B) (C)
3.450%, 05/15/00 139 139
The accompanying notes are an integral part of the financial statements.
April 30, 1999 19
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- ------------------------------------------------------------------------------
Michigan (continued)
Michigan State Job Development Authority RB,
East Lansing Residential Project (A) (B) (C)
3.250%, 05/11/99 $ 900 $ 900
Parchment, SAN
4.250%, 08/26/99 665 666
- ------------------------------------------------------------------------------
TOTAL MICHIGAN 2,705
- ------------------------------------------------------------------------------
Minnesota - 4.3%
Minnesota State, Capital Realty Trust RB (A) (B) (C)
4.250%, 05/11/99 3,335 3,335
- ------------------------------------------------------------------------------
TOTAL MINNESOTA 3,335
- ------------------------------------------------------------------------------
Mississippi - 1.0%
Hancock County, Mississippi School District GO
5.500%, 10/15/99 425 429
Mississippi State Higher Education RB, Series B
6.000%, 01/01/00 350 355
- ------------------------------------------------------------------------------
TOTAL MISSISSIPPI 784
- ------------------------------------------------------------------------------
Missouri - 6.8%
Clayton, Industrial Development Authority RB,
Bailey Court Project (A) (B) (C)
4.200%, 05/11/99 500 500
Jackson County, Industrial Development Authority RB,
YMCA Greater Kansas Project, Series A (A) (B) (C)
4.400%, 05/03/99 2,300 2,300
Kansas City, Industrial Development Authority RB,
Clover Sets Apartment Program (A) (B) (C)
4.250%, 05/11/99 1,630 1,630
Saint Louis, Grantor Trust RB, Series 96-A
COP (A) (B) (C)
4.050%, 05/11/99 900 900
- ------------------------------------------------------------------------------
TOTAL MISSOURI 5,330
- ------------------------------------------------------------------------------
New York - 0.3%
New York City, Municipal Assistance City for
New York RB, Series 66
7.250%, 07/01/99 200 201
- ------------------------------------------------------------------------------
TOTAL NEW YORK 201
- ------------------------------------------------------------------------------
North Carolina - 0.4%
North Carolina State Municipal Power Agency RB,
Catawba Electric
10.250%, 01/01/00 330 345
- ------------------------------------------------------------------------------
TOTAL NORTH CAROLINA 345
- ------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
20 APRIL 30, 1999
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- ------------------------------------------------------------------------------
Ohio - 5.6%
Clermont County, Economic Development RB,
John Q. Hammons Project (A) (B) (C)
3.400%, 11/01/99 $ 580 $ 580
East Muskingum, Water Authority BAN
4.320%, 06/24/99 500 500
Franklin County, Hospital RB, Doctors of Ohio
Health Project, Series B (A) (B) (C)
4.100%, 05/11/99 2,000 2,000
McDonald Tax-Exempt Mortgage Trust (A) (B) (C)
3.450%, 05/15/00 649 650
Portage County, Sewer District Improvement
Notes, Series 2
4.000%, 07/07/99 609 609
- ------------------------------------------------------------------------------
TOTAL OHIO 4,339
- ------------------------------------------------------------------------------
Oklahoma - 0.7%
Tulsa, Public Facilities Authority RB, Series 1988-A
5.050%, 05/01/99 540 540
- ------------------------------------------------------------------------------
TOTAL OKLAHOMA 540
- -------------------------------------------------------------------------------
Pennsylvania - 2.8%
McDonald Tax-Exempt Mortgage Trust (A) (B) (C)
3.450%, 05/15/00 139 139
Mifflin County, School District GO, Series A
3.100%, 09/01/99 725 725
Montgomery County, Higher Education & Health
Authority RB, Higher Education & Health Loan
Project, Series 96-A (A) (B) (C)
4.050%, 05/11/99 1,300 1,300
- ------------------------------------------------------------------------------
TOTAL PENNSYLVANIA 2,164
- ------------------------------------------------------------------------------
Rhode Island - 0.7%
Cranston, BAN
4.500%, 06/28/99 545 546
- ------------------------------------------------------------------------------
TOTAL RHODE ISLAND 546
- ------------------------------------------------------------------------------
South Carolina - 0.3%
Walhalla, RB, Avondale Mills Project (A) (B) (C)
4.050%, 05/11/99 200 200
- ------------------------------------------------------------------------------
TOTAL SOUTH CAROLINA 200
- ------------------------------------------------------------------------------
Tennessee - 1.1%
Greystone, Tax Exempt Certificate Trust Authority RB,
Senior Certificate of Beneficial Ownership
Project (A) (B) (C)
4.130%, 05/11/99 685 685
The accompanying notes are an integral part of the financial statements.
APRIL 30, 1999 21
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- ------------------------------------------------------------------------------
Tennessee (continued)
Jacksonville, Industrial Development Board RB,
Esselte Project, Series B (A) (B) (C)
4.350%, 05/03/99 $ 200 $ 200
- ------------------------------------------------------------------------------
TOTAL TENNESSEE 885
- ------------------------------------------------------------------------------
Texas -- 5.3%
Harris County, Health Facilities Development RB,
Tirr Project (A) (B) (C)
4.350%, 05/03/99 500 500
Longview, GO
7.000%, 06/01/99 195 196
Paris, Texas Hospital Authority RB,
St. Josephs Hospital Project (D)
10.250%, 08/01/99 565 575
Texas State Health Facilities Development RB,
Series 1985-A (A) (B) (C)
4.300%, 05/11/99 900 900
Waxahachie, Texas Industrial Development Authority RB,
Dart Container Project (A) (B) (C)
4.108%, 05/11/99 1,950 1,950
- ------------------------------------------------------------------------------
TOTAL TEXAS 4,121
- ------------------------------------------------------------------------------
Utah -- 2.6%
Utah State Housing Finance Agency RB,
Single Family Mortgage
4.800%, 07/01/99 220 220
West Valley, Industrial Development RB,
Johnson Matthey Project (A) (B) (C)
4.350%, 05/03/99 1,800 1,800
- ------------------------------------------------------------------------------
TOTAL UTAH 2,020
- ------------------------------------------------------------------------------
Virginia -- 0.4%
Greystone, Tax Exempt Certificate Trust Authority RB,
Senior Certificate of Beneficial Ownership
Project (A) (B) (C)
4.130%, 05/11/99 322 322
- ------------------------------------------------------------------------------
TOTAL VIRGINIA 322
- ------------------------------------------------------------------------------
Washington - 3.1%
Washington State, Non-Profit Housing Authority RB,
Panorama City Project (A) (B) (C)
4.500%, 05/03/99 500 500
Washington State Non-Profit Housing Finance Authority RB,
Emerald Heights Project (A) (B) (C)
4.300%, 05/03/99 600 600
The accompanying notes are an integral part of the financial statements.
22 APRIL 30, 1999
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
- -------------------------------------------------------------------------------
Washington (CONTINUED)
Washington State Public Power Supply RB, Nuclear
Project #3 (D)
7.250%, 07/01/99 $1,330 $ 1,365
- -------------------------------------------------------------------------------
TOTAL WASHINGTON 2,465
- -------------------------------------------------------------------------------
West Virginia -- 1.5%
Putnam County, Industrial Development RB,
FMC Corporation Project (A) (B) (C)
3.250%, 05/11/99 1,200 1,200
- -------------------------------------------------------------------------------
TOTAL WEST VIRGINIA 1,200
- -------------------------------------------------------------------------------
Wisconsin - 3.9%
Ashwaubenon, BAN
3.600%, 12/01/99 600 600
Johnson Creek, School District, TRAN
3.980%, 08/30/99 1,200 1,200
Northern Ozaukee, School District, BAN
3.400%, 02/01/00 500 500
Wisconsin State School District Temporary
Borrowing Program, Series B2, COP
3.900%, 10/08/99 785 785
- -------------------------------------------------------------------------------
TOTAL WISCONSIN 3,085
- -------------------------------------------------------------------------------
Wyoming -- 1.8%
Cheyenne County, Economic Development RB,
Holiday Inn Project (A) (B) (C)
3.250%, 10/01/99 410 410
Lincoln County, School District, Afton Grant
Anticipation Warrants
4.000%, 06/30/99 990 990
- -------------------------------------------------------------------------------
TOTAL WYOMING 1,400
- -------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(COST $75,778) 75,778
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 97.1%
(COST $75,778) 75,778
- -------------------------------------------------------------------------------
Other Assets & Liabilities, Net -- 2.9% 2,255
- -------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
APRIL 30, 1999 23
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION (000)
- -------------------------------------------------------------------------------
Net Assets:
Portfolio Capital of Institutional Shares (unlimited
authorization - no par value) based on
32,908,382 outstanding shares of beneficial interest $32,908
Portfolio Capital of Investment Service Shares
(unlimited authorization - no par value) based on
45,128,219 outstanding shares of beneficial interest 45,128
Accumulated net realized loss on investments (3)
- -------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $78,033
- -------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price
Per Share - Institutional Shares $1.00
- -------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price
Per Share - Investment Services Shares $1.00
- --------------------------------------------------------------------------------
(A) Floating Rate Security - The rate reported on the Statement of Net Assets
is the rate in effect on April 30, 1999.
(B) Put and Demand feature - The date reported on the Statement of Net Assets
is the lesser 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) Restricted Security
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.
24 APRIL 30, 1999
<PAGE>
STATEMENT OF OPERATIONS (000) (UNAUDITED)
FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 1999
EXPEDITION EXPEDITION
EXPEDITION EXPEDITION MONEY TAX-FREE
EQUITY BOND MARKET MONEY
FUND FUND FUND MARKET FUND
----------- ---------- ------- ------------
Investment Income:
Dividends $ 1,663 $ -- $ -- $ --
Interest 93 3,265 6,915 1,063
------- ------- ------- -------
Total investment income 1,756 3,265 6,915 1,063
Expenses:
Investment Advisory fees 1,215 419 540 63
Waiver of Investment Advisory fees -- (140) (301) (26)
Administrator fees 324 112 272 64
Waiver of Administrator fees -- -- (69) (16)
Transfer Agent fees 51 43 42 15
Custodian fees 32 11 27 8
Directors' fees 8 3 7 1
Registration fees 79 38 42 13
Professional fees 13 4 11 7
Printing fees 11 4 9 4
Shareholder Servicing fees -
Investment Service Shares 6 -- 214 75
Distribution fees - Investment
shares -- 12 -- --
Amortization of organization costs 2 -- -- 2
Other fees 4 3 1 1
------- ------- ------ -----
Net expenses 1,745 509 795 211
------- ------- ------ -----
Investment income - net 11 2,756 6,120 852
------- ------- ------ -----
Net realized gain (loss) on
investments 21,378 349 (2) (3)
Net change in unrealized
appreciation (depreciation)
of investments 59,391 (3,150) -- --
------- ------- ------ -----
NET GAIN (LOSS) ON INVESTMENTS 80,769 (2,801 (2) (3)
------- ------- ------ -----
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS $80,780 $ (45) $6,118 $ 849
======= ====== ====== ======
The accompanying notes are an integral part of the financial statements.
APRIL 30, 1999 25
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
For the six-month period ended April 30, 1999 (unaudited)
and the year ended October 31, 1998
<TABLE>
EXPEDITION EXPEDITION EXPEDITION
EQUITY BOND MONEY MARKET
FUND FUND FUND
------------------------ ------------------------ --------------------------
Period Ended Year Ended Period Ended Year Ended Period Ended Year Ended
4/30/99 10/31/98 4/30/99 10/31/98 4/30/99 10/31/98
----------- ---------- ------------ ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Investment income -- net $ 11 $ 1,140 $ 2,756 $ 5,939 $ 6,120 $ 9,181
Net realized gain (loss) on investments 21,378 16,144 349 544 (2) 7
Net change in unrealized appreciation
(depreciation) of investments 59,391 28,082 (3,150) 2,966 -- --
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets resulting
from operations 80,780 45,366 (45) 9,449 6,118 9,188
-------- -------- -------- -------- -------- --------
Distributions to Shareholders From:
Investment income -- net:
Institutional Shares (99) (1,525) (2,527) (5,215) (2,312) (2,424)
Investment Shares - Class A/Investment Service Shares -- -- (221) (729) (3,807) (6,758)
Investment Shares - Class B -- -- (1) -- -- --
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 (15,731) (14,414) (2,749) (5,944) (6,119) (9,182)
-------- -------- -------- -------- -------- --------
Capital Share Transactions (2):
Institutional Shares:
Proceeds from sales 22,500 72,889 10,438 21,515 174,222 177,765
Reinvestment of distributions 15,498 246 1,489 1,945 146 75
Payments for redemptions (33,427) (58,339) (12,707) (22,835) (142,116) (123,149)
-------- -------- -------- -------- -------- --------
Increase (decrease) in net assets from Institutional
Shares transactions 4,571 14,796 (780) 625 32,252 54,691
-------- -------- -------- --------- ------- -------
Investment Shares - Class A and Investment Service
Shares (respectively):
Proceeds from sales 2,025 1,846 286 62 345,113 578,112
Reinvestment of distributions 153 1 140 389 786 1,618
Payments for redemptions (1,069) (81) (1,925) (14,136) (318,861) (584,475)
-------- -------- -------- -------- -------- --------
Increase (decrease) in net assets from
Investment Shares - Class A and Investment
Service Shares (respectively) transactions 1,109 1,766 (1,499) (13,685) 27,038 (4,745)
-------- -------- -------- -------- -------- --------
Investment Shares - Class B
Proceeds from sales 2,079 -- 66 -- -- --
Reinvestment of distributions 2 -- 1 -- -- --
Payments for redemptions (6) -- -- -- -- --
-------- -------- -------- -------- -------- --------
Increase in net assets from
Investment Shares - Class B 2,075 -- 67 -- -- --
-------- -------- -------- -------- -------- --------
Increase (decrease) in net assets from
capital share transactions 7,755 16,562 (2,212) (13,060) 59,290 49,946
-------- -------- -------- -------- -------- --------
Total increase (decrease) in net assets 72,804 47,514 (5,006) (9,555) 59,289 49,952
-------- -------- -------- -------- -------- --------
Net Assets at Beginning of period 285,081 237,567 115,299 124,854 245,609 195,657
-------- -------- -------- -------- -------- --------
Net Assets at End of period $357,885 $285,081 $110,293 $115,299 $304,898 $245,609
======== ======== ======== ======== ======== ========
<FN>
(1) Commenced operations on May 20, 1998.
(2) See note 4 in the notes to financial statements for additional information.
</FN>
</TABLE>
<TABLE>
EXPEDITION
TAX-FREE MONEY
MARKET FUND
--------------------------
Period Ended Year Ended
4/30/99 10/31/98(1)
------------- -------------
<S> <C> <C>
Operations:
Investment income -- net $ 852 $ 779
Net realized gain (loss) on investments (3) --
Net change in unrealized appreciation
(depreciation) of investments -- --
-------- --------
Net increase (decrease) in net assets resulting
from operations 849 779
-------- --------
Distributions to Shareholders From:
Investment income -- net:
Institutional Shares (48) --
Investment Shares - Class A/Investment Service Shares (804) (779)
Investment Shares - Class B -- --
Net realized gain on investments:
Institutional Shares -- --
Investment Shares - Class A/Investment Service Shares -- --
Investment Shares - Class B -- --
-------- --------
Total distributions (852) (779)
-------- --------
Capital Share Transactions (2):
Institutional Shares:
Proceeds from sales 33,229 --
Reinvestment of distributions -- --
Payments for redemptions (321) --
-------- --------
Increase (decrease) in net assets from Institutional
Shares transactions 32,908 --
-------- --------
Investment Shares - Class A and Investment Service
Shares (respectively):
Proceeds from sales 64,248 140,266
Reinvestment of distributions 6 1
Payments for redemptions (83,668) (75,725)
-------- --------
Increase (decrease) in net assets from
Investment Shares - Class A and Investment Servic
(respectively) transactions (19,414) 64,542
-------- --------
Investment Shares - Class B
Proceeds from sales -- --
Reinvestment of distributions -- --
Payments for redemptions -- --
-------- --------
Increase in net assets from
Investment Shares - Class B -- --
-------- --------
Increase (decrease) in net assets from
capital share transactions 13,494 64,542
-------- --------
Total increase (decrease) in net assets 13,491 64,542
-------- --------
Net Assets at Beginning of period 64,542 --
-------- --------
NEt Assets at End of period $ 78,033 $ 64,542
======== ========
<FN>
(1) Commenced operations on May 20, 1998.
(2) See note 4 in the notes to financial statements for additional information.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
26 & 27 APRIL 30, 1999
<PAGE>
FINANCIAL HIGHLIGHTS
FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 1999 (UNAUDITED) AND THE PERIODS
ENDED OCTOBER 31,
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
- -----------------------------------------------------------------------------------------------------------------------------------
REALIZED
AND DISTRIBU- DISTRIBU- NET RATIO OF NET
NET ASSET NET UNREALIZED TIONS TIONS ASSSTS RATIO OF INVESTMENT
VALUE, INVEST- GAINS OR FROM NET FROM NET ASSET END OF EXPENSES INCOME (LOSS)
BEGINNING MENT (LOSSES) ON INVESTMENT CAPITAL VALUE, END TOTAL PERIOD TO AVERAGE TO AVERAGE
OF PERIOD INCOME INVESTMENTS INCOME GAINS OF PERIOD RETURN+ (000) NET ASSETS NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------------
EQUITY FUND
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Institutional Shares
1999 $10.55 -- 2.90 -- (0.59) $12.86 28.57% $352,125 1.07%* 0.01%*
1998 9.39 0.06 1.67 (0.06) (0.51) 10.55 19.18% 283,170 1.08% 0.38%
1997(1) 10.00 0.02 0.25 (0.02) (0.86) 9.39 2.96% 237,567 1.09%* 0.53%*
Investment Shares - Class A
1999 $10.58 -- 2.87 -- (0.59) $12.86 28.16% $ 3,617 1.32%* (0.24%)*
1998(2) 9.65 0.04 1.45 (0.05) (0.51) 10.58 16.16% 1,911 1.29%* (0.14%)*
Investment Shares - Class B
1999(3) $11.02 -- 2.37 -- (0.59) $12.80 24.75% $ 2,143 2.06%* (1.03%)*
- -----------------------------------------------------------------------------------------------------------------------------------
Bond Fund
- -----------------------------------------------------------------------------------------------------------------------------------
institutional Shares
1999 $10.15 0.25 (0.25) (0.25) -- $ 9.90 (0.04%) $101,618 0.89%* 4.93%*
1998 9.85 0.51 0.30 (0.51) -- 10.15 8.43% 104,953 0.94% 5.11%
1997(1) 9.69 0.19 0.16 (0.19) -- 9.85 3.49% 101,224 1.10%* 5.05%*
Investment Shares - Class A
1999 $10.15 0.23 (0.25) (0.23) -- $ 9.90 (0.17%) $ 8,609 1.13%* 4.68%*
1998 9.85 0.49 0.30 (0.49) -- 10.15 8.25% 10,346 1.10% 4.95%
1997 9.77 0.53 0.08 (0.53) -- 9.85 6.41% 23,630 1.13% 5.46%
1996 9.92 0.58 (0.15) (0.58) -- 9.77 4.44% 44,552 1.08% 5.90%
1995 9.54 0.63 0.38 (0.63) -- 9.92 10.94% 63,521 1.04% 6.51%
1994 10.40 0.54 (0.86) (0.54) -- 9.54 (3.12%) 58,827 1.20% 5.44%
Investment Shares - Class B
1999(3) $10.06 0.43 (0.16) (0.43) -- 9.90 2.66% $ 66 1.89%* 4.01%*
- -----------------------------------------------------------------------------------------------------------------------------------
Money Market Fund
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
1999 $ 1.00 0.02 -- (0.02) -- $ 1.00 2.35% $134,950 0.43%* 4.66%*
1998 1.00 0.05 -- (0.05) -- 1.00 5.33% 102,699 0.43% 5.18%
1997(4) 1.00 0.02 -- (0.02) -- 1.00 5.26% 48,006 0.43%* 5.22%*
Investment Service Shares
1999 $ 1.00 0.02 -- (0.02) -- $ 1.00 2.23% $169,948 0.68%* 4.42%*
1998 1.00 0.05 -- (0.05) -- 1.00 5.07% 142,910 0.68% 4.95%
1997(5) 1.00 0.08 -- (0.08) -- 1.00 4.97% 147,651 0.73% 4.84%
1996 1.00 0.04 -- (0.04) -- 1.00 4.95% 136,666 0.71% 4.85%
1995 1.00 0.05 -- (0.05) -- 1.00 5.51% 141,434 0.56% 5.38%
1994 1.00 0.03 -- (0.03) -- 1.00 3.29% 158,367 0.75% 3.26%
- -----------------------------------------------------------------------------------------------------------------------------------
Tax-Free Money Market Fund
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
1999(6) $ 1.00 -- -- -- -- $1.00 0.15% $ 32,908 0.43%* 3.12%*
Investment Service Shares
1999 $ 1.00 0.01 -- (0.01) -- $1.00 1.33% $ 45,125 0.68%* 2.66%*
1998(7) 1.00 0.01 -- (0.01) -- 1.00 1.33% 64,542 0.68%* 2.95%*
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
RATIO
OF EXPENSES
TO AVERAGE RATIO OF NET INVESTMENT
NET ASSETS INCOME (LOSS) TO AVERAGE NET PORTFOLIO
(EXCLUDING ASSETS (EXCLUDING WAIVERS TURNOVER
WAIVERS) AND REIMBURSEMENTS) RATE
- -------------------------------------------------------------------------------
EQUITY FUND
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
1999 1.07%* 0.01%* 30.08%
1998 1.11% 0.35% 54.19%
1997(1) 1.09%* 0.53%* 64.68%
Investment Shares - Class A
1999 1.32%* (0.24%)* 30.08%
1998(2) 1.37%* (0.22%)* 54.19%
Investment Shares - Class B
1999(3) 2.06%* (1.03%)* 30.08%
- -------------------------------------------------------------------------------
Bond Fund
- -------------------------------------------------------------------------------
Institutional Shares
1999 1.09%* 4.73%* 18.02%
1998 1.13% 4.92% 32.93%
1997(1) 1.11%* 5.04%* 69.09%
Investment Shares - Class A
1999 1.38%* 4.43%* 18.02%
1998 1.25% 4.80% 32.93%
1997 1.56% 5.03% 69.09%
1996 1.58% 5.40% 77.00%
1995 1.51% 6.04% 79.00%
1994 1.50% 5.14% 91.00%
Investment Shares - Class B
1999(3) 2.14%* 3.76%* 18.02%
- -------------------------------------------------------------------------------
Money Market Fund
- -------------------------------------------------------------------------------
Institutional Shares
1999 0.65%* 4.44%* --
1998 0.66% 4.95% --
1997(4) 0.70%* 4.95%* --
Investment Service Shares
1999 0.94%* 4.16%* --
1998 0.91% 4.73% --
1997(5) 0.85% 4.72% --
1996 0.71% 4.85% --
1995 0.66% 5.28% --
1994 0.79% 3.22% --
- -------------------------------------------------------------------------------
Tax-Free Money Market Fund
- -------------------------------------------------------------------------------
Institutional shares
1999(6) 0.92%* 2.63%* --
Investment Service Shares
1999 0.79%* 2.77%* --
1998(7) 1.03%* 2.60%* --
<FN>
* Annualized
[DAGGER] 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.
(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.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
28 & 29 APRIL 30, 1999
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(1) ORGANIZATION
The Expedition Funds (the "Trust") is 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 April 30, 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 of the Expedition Equity and Bond Funds are registered to
offer three classes of shares, while both the Money Market Funds are registered
to offer two classes of shares. The Bond and Equity Funds offer Institutional
Shares, Investment Shares - Class A and Investment Shares - Class B, 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").
30 APRIL 30, 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' 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, 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.
APRIL 30, 1999 31
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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
revenues 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 (the
"Advisor"), receives for its services annual advisory fees equal to 0.75% each
of the Bond and Equity Funds' and 0.40% 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.
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.
32 APRIL 30, 1999
<PAGE>
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 0.20% 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 PLAN -- The Trust and SEI Investments Distribution Co. (the
"Distributor") are parties to a Distribution Agreement dated June 9, 1997. The
Bond and Equity Funds have adopted a Distribution Plan pursuant to Rule 12b-1
under the Act for Investment Shares - Class A (the "Class A Plan"). Under the
terms of the Class A Plan, each Fund will compensate the Distributor from the
net assets of each Fund to finance activities intended to result in the sale of
the Fund's Class A shares. The plan provides that each Fund may incur
distribution expenses annually up to 0.25% of the average daily net assets of
each Fund's Class A shares to compensate the Distributor. The Distributor may
voluntarily choose to waive a portion of its fee.
The Bond and Equity Funds have also adopted a Distribution and Service Agreement
(the "Agreement") pursuant to 12b-1 under the Act for the Investment Shares -
Class B (the "Class B Plan"). Under the terms of the Agreement, each Fund will
compensate the Distributor from the net assets of each Fund to finance
activities intended to result in the sale of the Fund's Class B shares. The
Agreement provides that each Fund may incur distribution expenses monthly up to
0.75% and shareholder servicing expenses monthly up to 0.25% of the average
daily net assets of each Fund's Class B shares to compensate the Distributor.
The Distributor may voluntarily choose to waive a portion of its fee.
Pursuant to the terms of a Shareholder Service Plan, the Money Market Fund and
the Tax-Free Money Market Fund will pay the Distributor an amount equal to 0.25%
of the average daily net assets of the Investment Service Shares.
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.
APRIL 30, 1999 33
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(4) CAPITAL SHARE TRANSACTIONS
<TABLE>
EXPEDITION EXPEDITION
EQUITY BOND
FUND FUND
--------------------------- ---------------------------
Period Ended Year Ended Period Ended Year Ended
4/30/99 10/31/98 4/30/99 10/31/98
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Institutional Shares:
Shares issued 1,920 7,204 1,044 2,164
Shares issued in lieu of cash distributions 1,439 23 149 195
Shares redeemed (2,816) (5,701) (1,269) (2,297)
-------- -------- -------- --------
Total Institutional Shares transactions 543 1,526 (76) 62
-------- -------- -------- --------
Investment Shares - Class A and Investment Service
Shares (respectively):
Shares issued 174 189 29 7
Shares issued in lieu of cash distributions 14 -- 14 39
Shares redeemed (88) (8) (193) (1,425)
-------- -------- -------- --------
Total Investment Shares - Class A and Investment Service
Shares (respectively) transactions 100 181 (150) (1,379)
-------- -------- -------- --------
Investment Shares - Class B:
Shares issued 168 -- 6 --
Shares issued in lieu of cash distributions 0 -- 1 --
Shares redeemed 0 -- -- --
-------- -------- -------- --------
Total Investment Shares - Class B transactions 168 -- 7 --
-------- -------- -------- --------
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS 811 1,707 (219) (1,317)
======== ======== ======== ========
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
EXPEDITION EXPEDITION
MONEY MARKET TAX-FREE MONEY
FUND Market Fund
--------------------------- --------------------------
Period Ended Year Ended Period Ended Year Ended
4/30/99 10/31/98 4/30/99 10/31/98
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Institutional Shares:
Shares issued 174,222 177,765 33,229 --
Shares issued in lieu of cash distributions 146 75 -- --
Shares redeemed (142,116) (123,149) (321) --
-------- -------- ------- -------
Total Institutional Shares transactions 32,252 54,691 32,908 --
-------- -------- ------- -------
Investment Shares - Class A and Investment Service
Shares (respectively):
Shares issued 345,113 578,112 64,248 140,266
Shares issued in lieu of cash distributions 786 1,618 6 1
Shares redeemed (318,861) (584,475) (83,668) (75,725)
-------- -------- ------- -------
Total Investment Shares - Class A and Investment Services
Shares (respectively) transactions 27,038 (4,745) (19,414) 64,542
-------- -------- ------- -------
Investment Shares - Class B:
Shares issued -- -- -- --
Shares issued in lieu of cash distributions -- -- -- --
Shares redeemed -- -- -- --
-------- -------- ------- -------
Total Investment Shares - Class B transactions -- -- -- --
-------- -------- ------- -------
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS 59,290 49,946 13,494 64,542
======== ======== ======= =======
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
(5) INVESTMENT TRANSACTIONS Purchases and sales of investments, excluding
short-term securities, for the period ended April 30, 1999, were as follows
(000):
Equity Bond
Fund Fund
-------- --------
Purchases
Government......................... -- $13,744
Other.............................. $ 96,995 $ 5,999
Sales
Government......................... -- $13,499
Other.............................. $106,396 $ 7,104
At April 30, 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 April 30, 1999, are as follows (000):
Equity Bond
Fund Fund
-------- --------
Aggregate gross unrealized
appreciation........................ $108,046 $1,743
Aggregate gross unrealized
depreciation........................ (8,702) (382)
-------- ------
Net unrealized appreciation........... $ 99,344 $1,361
======== ======
(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 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
34 & 35 APRIL 30, 1999
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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.
36 APRIL 30, 1999
<PAGE>
[LOGO OMITTED]
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-016-02
