Expedition Funds GUIDING YOUR WAY 2000 Annual Report
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[Expedition Funds Logo Omitted]
Table of Contents
Letter to Our Shareholders ............................. 1
Management's Discussion and Analysis ................... 3
Statements of Net Assets ............................... 13
Statements of Operations ............................... 50
Statements of Changes in Net Assets .................... 52
Financial Highlights ................................... 56
Notes to Financial Statements .......................... 60
Independent Auditor's Report ........................... 68
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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.
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<PAGE>
LETTER TO OUR SHAREHOLDERS
Dear Shareholder:
To be an investor is also to be a student. Whether an expert or a novice, one
continually learns new lessons about the markets, the economy, and human
behavior. In fiscal year 2000, even the most experienced investors found plenty
of opportunities for enlightenment in the performance of stocks, bonds, and
money market instruments.
Perhaps the most significant of the market's recent lessons was that sooner or
later, all fads will pass - even one as heavily publicized as "dot-com" mania.
At the height of this phenomenon, many well-known "gurus" announced that new
rules now applied, and that a new economy was at hand. Now, just a few months
after the Internet trend reached its peak, the real wisdom appears to belong to
those who adhered to rules and economic principles that have stood the test of
time.
This would include investors in the Expedition Funds' two equity funds, which
generally do not make bets on specific market sectors but instead focus on
issues of more lasting value.
Our shareholders found that when the rise and fall of the more risky sectors was
factored out, fiscal year 2000 was not a bad year for stocks overall. Blue chip
issues and many of the stronger technology stocks actually produced solid
returns. And value - oriented stocks enjoyed their best period in years as
investors sought issues that offered reasonable prices -- and real earnings.
It was also a relatively good year for bonds, despite four separate rate hikes
by the Federal Reserve Board. The lesson here was that a strong economy, low
unemployment, and even a spike in oil prices, need not result in runaway
inflation or a severe correction for bonds.
And in the money market sector, where real returns were boosted by those same
Fed rate hikes, investors could not help but learn that very often, slow and
steady wins the race.
NEW INVESTORS AND NEW CHOICES
For the Expedition Funds family, fiscal 2000 demonstrated the value of offering
a prudent investment approach based on solid principles and long-term
experience.
As the number of investors in our fund family continued to grow, overall Fund
assets under management reached a record level of $1.3 billion at fiscal
year-end, compared with $888 million at the close of fiscal 1999.
OCTOBER 31, 2000 1
<PAGE>
LETTER TO OUR SHAREHOLDERS (CONCLUDED)
One reason for this outstanding growth was the successful introduction of two
exciting new Expedition Funds portfolios in March 2000:
* THE EXPEDITION EQUITY INCOME FUND seeks long-term growth of capital, with
an emphasis on current income. This fund may be appropriate for investors
who are willing to accept fluctuations consistent with a capital growth
strategy.
* THE EXPEDITION TAX-FREE INVESTMENT GRADE BOND FUND seeks current income
that is exempt from Federal income taxes. This fund may be appropriate for
tax-sensitive, income-oriented investors.
With these new funds, we now offer even more ways for our investors to develop a
diversified, balanced program for seeking their financial goals.
MOVING FORWARD WITH CONFIDENCE
While the lessons of 2000 were valuable, they simply represent another chapter
in a long textbook that our managers have been studying for decades.
The overriding message in these pages is that investors should retain a sense of
cautious optimism, hoping for the best while prudently preparing for the worst.
What's more, history has shown that those who remain fully invested at all
times, in a manner that is consistent with their overall strategies, are most
likely to benefit from the long-term opportunities that the markets offer.
We continue to manage the Expedition Funds for investors who share this outlook
on the market, and we are gratified that more and more individuals and
institutions have given us the privilege of guiding their hard-earned assets
through all types of market environments.
We appreciate your continued confidence in our stewardship, and look forward to
helping you benefit from our knowledge of the past and our enthusiasm about the
future.
Sincerely,
/s/ signature omitted
Jan Koenig
CHIEF INVESTMENT OFFICER
COMPASS BANK ASSET MANAGEMENT GROUP
EXPEDITION FUNDS INVESTMENT ADVISOR
2 OCTOBER 31, 2000
<PAGE>
EXPEDITION EQUITY FUND
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the twelve month period ended October 31, 2000, the Expedition Equity Fund
(Institutional Shares) generated a total return of 22.01%. This compares to a
6.78% return for the S&P 500 Composite Stock Index and a 9.71% 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 for much of the fiscal year due to a number
of investor concerns. At various times, these included fears of higher interest
rates, wage and energy cost inflation, the weak Euro, the outcome of the U.S.
election, slower economic growth, lower capital spending, and deceleration of
corporate profit gains.
These concerns took the greatest toll on high-growth, high-valuation stocks,
leading to sharp corrections as the year progressed. Stocks of companies that
were less dependent upon overall economic strength, and that offered more modest
valuations, performed somewhat better.
Throughout the year, the Expedition Equity Fund continued to pursue a balanced
approach, employing both growth-oriented and value-oriented disciplines in order
to seek competitive long-term returns. This approach helped the Fund avoid the
excesses of the markets, resulting in significant outperformance of its two
benchmarks.
Looking ahead, we expect the world's major economies to continue expanding,
although at slower rates than in recent years. This slower growth should reduce
the potential for inflation, and ultimately result in a continued expansion of
the global money supply.
In addition, we believe that the valuations on many stocks are now relatively
favorable in relation to the growth rates of their underlying companies. As a
result, we see a number of attractive opportunities in the markets, and are
selectively choosing those which appear to offer the right balance of risk and
return potential for our Fund.
OCTOBER 31, 2000 3
<PAGE>
EXPEDITION EQUITY FUND
MANAGEMENT'S DISCUSSION AND ANALYSIS
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
EXPEDITION EQUITY FUND
----------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
----------------------------------------------------------------------------------------
1 Year 3 Year 5 Year Inception
Return Return Return to Date
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Institutional Shares 22.01% 23.92% 24.23%* 21.97%
----------------------------------------------------------------------------------------
Investment Shares - Class A 21.73% 23.67%** 24.08%** 23.08%
----------------------------------------------------------------------------------------
Investment Shares - Class A w/load 16.90% 22.00%** 23.06%** 21.39%
----------------------------------------------------------------------------------------
Investment Shares - Class B 20.80% 23.09%** 23.73%** 24.07%
----------------------------------------------------------------------------------------
Investment Shares - Class B w/load 15.80% 22.43%** 23.64%** 22.40%
----------------------------------------------------------------------------------------
</TABLE>
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE EXPEDITION
EQUITY FUND, INSTITUTIONAL SHARES, INVESTMENT SHARES CLASSA OR 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.
[Chart Omitted]
Plot points are as follows:
<TABLE>
<CAPTION>
EXPEDITION EXPEDITION LIPPER
EXPEDITION EQUITY FUND, EQUITY FUND, GROWTH & LIPPER
EQUITY FUND, INVESTMENT INVESTMENT S&P 500 S&P 400 INCOME LARGE-CAP
INSTITUTIONAL SHARES- SHARES- COMPOSITE MID-CAP FUNDS CORE FUNDS
SHARES CLASS A CLASS B INDEX INDEX OBJECTIVE CLASSIFICATION
<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 10,277 10,222
10/95 11,712 11,243 11,712 13,129 12,407 12,413 12,492
10/96 14,321 13,748 14,321 16,290 14,560 15,137 15,149
10/97 18,209 17,481 18,209 21,520 19,313 19,459 19,402
10/98 21,701 20,868 21,738 26,254 20,607 21,409 22,260
10/99 28,401 27,162 28,159 32,993 24,949 25,202 28,161
10/00 34,642 33,065 34,016 35,003 32,846 27,596 30,887
<FN>
* FOR PERIODS PRIOR TO THE INCEPTION OF THE EXPEDITION EQUITY FUND (THE
"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 FUND'S INVESTMENT ADVISOR, ADJUSTED FOR THE MAXIMUM FEE
AND EXPENSES OF THE INSTITUTIONAL SHARES OF THE FUND APPLICABLE AT THE
INCEPTION OF THE 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.
** CLASS A SHARES OF THE FUND WERE OFFERED BEGINNING NOVEMBER 24, 1997 AND
CLASS B SHARES OF THE FUND WERE OFFERED BEGINNING NOVEMBER 16, 1998. THE
PERFORMANCE INFORMATION SHOWN PRIOR TO THAT REPRESENTS PERFORMANCE OF
INSTITUTIONAL SHARES. THE PRIOR INSTITUTIONAL SHARES PERFORMANCE HAS BEEN
ADJUSTED TO REFLECT THE MAXIMUM FRONT-END SALES CHARGES AND THE MAXIMUM
CONTINGENT DEFERRED SALES CHARGES APPLICABLE TO CLASS A AND CLASS B SHARES,
RESPECTIVELY, BUT DOES NOT REFLECT THE HIGHER RULE 12B-1 FEES FOR EITHER
CLASS. HAD THAT ADJUSTMENT BEEN MADE, PERFORMANCE WOULD HAVE BEEN LOWER.
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.
</FN>
</TABLE>
4 OCTOBER 31, 2000
<PAGE>
EXPEDITION EQUITY INCOME FUND
MANAGEMENT'S DISCUSSION AND ANALYSIS
From its inception on March 3, 2000 to October 31, 2000, the Expedition Equity
Income Fund (Institutional Shares) generated a total return of 8.36%. This
compares to a -4.01% return for the S&P 500 Composite Stock Index and a 2.00%
return for the Lipper Large-Cap Value Funds Average for the comparable time
period.
The Fund seeks to provide growth of capital, with a secondary objective of
income. These objectives are pursued through a diversified portfolio of common
stocks issued by mid and large- capitalization companies.
The U.S. stock market was volatile for much of the period due to concerns over
higher interest rates, higher energy costs, a strong dollar, and inflation in
wages. These factors led to slower economic growth and lower earnings for many
U.S. corporations.
In this environment, traditional "value" industries such as defense, natural
gas, healthcare, and financial services performed relatively well against
"growth" industries such as technology and telecommunications. And since
value-oriented industries are well represented in the Fund, the result was a
strong total return for the period.
Looking ahead, we see the economy slowing even further. But even in a sluggish
economy, many corporations will continue to offer positive prospects for
earnings and growth. Our goal, therefore, is to continue to manage risk and
return by selecting those which offer above-average growth potential and
reasonable valuations.
OCTOBER 31, 2000 5
<PAGE>
EXPEDITION EQUITY INCOME FUND
MANAGEMENT'S DISCUSSION AND ANALYSIS
--------------------------------------------------------------------------------
EXPEDITION EQUITY INCOME FUND
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
--------------------------------------------------------------------------------
Cumulative
Inception to
Date
--------------------------------------------------------------------------------
Institutional Shares 8.36%
--------------------------------------------------------------------------------
Investment Shares - Class A 10.60%
--------------------------------------------------------------------------------
Investment Shares - Class A w/load 6.15%
--------------------------------------------------------------------------------
Investment Shares - Class B 9.71%
--------------------------------------------------------------------------------
Investment Shares - Class B w/load 4.71%
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE EXPEDITION
EQUITY INCOME FUND, INSTITUTIONAL SHARES, INVESTMENT SHARES-CLASS A OR
INVESTMENT SHARES-CLASS B, VERSUS THE S&P 500 INDEX, THE LIPPER LARGE-CAP
VALUE CLASSIFICATION, THE LIPPER EQUITY INCOME CLASSIFICATION, AND THE LIPPER
EQUITY INCOME OBJECTIVE.
[Chart Omitted]
Plot points are as follows:
<TABLE>
<CAPTION>
EXPEDITION EXPEDITION
EXPEDITION EQUITY EQUITY
EQUITY INCOME FUND, INCOME FUND, LIPPER LIPPER LIPPER
INCOME FUND, INVESTMENT INVESTMENT S&P 500 LARGE-CAP EQUITY EQUITY
INSTITUTIONAL SHARES- SHARES- COMPOSITE VALUE INCOME INCOME
SHARES CLASS A CLASS B INDEX CLASSIFICATION CLASSIFICATION OBJECTIVE
<S> <C> <C> <C> <C> <C> <C> <C>
3/31/00 $10,000 $ 9,600 $10,000 $10,000 $10,000 $10,000 $10,000
10/00 10,350 9,918 9,802 9,599 10,230 10,652 10,596
<FN>
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.
</FN>
</TABLE>
6 OCTOBER 31, 2000
<PAGE>
EXPEDITION INVESTMENT GRADE BOND FUND
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the twelve month period ended October 31, 2000, the Expedition Investment
Grade Bond Fund (Institutional Shares) generated a total return of 6.49%. This
compares to a 6.29% return for the Lipper Intermediate U.S. Government Funds
Average. The Fund seeks to provide income with relative stability of principal.
Volatility was the word to describe the bond market during the most recent
fiscal year. The Federal Reserve Board increased short-term interest rates four
times between late 1999 and early 2000, pushing the Federal Funds rate from
5.25% to 6.50%. After the last increase on May 16, however, the Federal Reserve
left rates unchanged.
As would be expected, yields in the U.S. Treasury market rose in response to the
interest rate hikes. For example, rates on the five year U.S. Treasury Bond rose
from 5.97% to as high as 6.80% in early May, before falling to 5.80% on October
31.
The big story in the U.S. Treasury market was the phenomenon known as an
"inversion of the yield curve." Under "normal" conditions, investors in
longer-term instruments receive higher yields to compensate for taking on
additional time-related risk. During fiscal 2000, however, long-term yields were
often actually lower than short-term yields.
Such an "inversion" sometimes indicates that a recession is ahead. In this case,
however, it may also be attributable to the recent use of the budget surplus to
buy back U.S. Treasury securities, which decreased supply.
In light of these conditions, the Expedition Investment Grade Bond Fund held the
maturity of its Treasury holdings relatively short, while selectively adding
high-quality corporate issues to take advantage of their comparatively high
yields.
Looking ahead, we believe that the Fed will continue to receive mixed signals
from the economy and the changing political climate. As we watch them attempt a
difficult balancing act, we will continue to pursue our conservative,
quality-oriented strategy.
OCTOBER 31, 2000 7
<PAGE>
EXPEDITION INVESTMENT GRADE BOND FUND
MANAGEMENT'S DISCUSSION AND ANALYSIS
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
EXPEDITION INVESTMENT GRADE BOND FUND
--------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
--------------------------------------------------------------------------------------
1 Year 3 Year 5 Year Inception
Return Return Return to Date
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Institutional Shares 6.49% 4.89% 5.10%* 5.42%
--------------------------------------------------------------------------------------
Investment Shares - Class A 6.22% 4.62% 4.94% 5.47%
--------------------------------------------------------------------------------------
Investment Shares - Class A w/load 1.99% 3.21% 4.10% 4.96%
--------------------------------------------------------------------------------------
Investment Shares - Class B 5.54% 5.00%* 5.17%* 3.89%
--------------------------------------------------------------------------------------
Investment Shares - Class B w/load 0.54% 4.09%* 5.01%* 1.97%
--------------------------------------------------------------------------------------
</TABLE>
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE EXPEDITION
INVESTMENT GRADE BOND FUND, INSTITUTIONAL SHARES, INVESTMENT SHARES-CLASS A OR
INVESTMENT SHARES-CLASS B, VERSUS THE LEHMAN INTERMEDIATE GOVERNMENT/CREDIT
INDEX, AND THE LIPPER INTERMEDIATE U.S. GOVERNMENT CLASSIFICATION.
[Chart Omitted]
Plot points are as follows:
<TABLE>
<CAPTION>
EXPEDITION EXPEDITION EXPEDITION
INVESTMENT INVESTMENT INVESTMENT
GRADE BOND GRADE BOND GRADE BOND LEHMAN LIPPER
FUND, FUND, FUND, INTERMEDIATE INTERMEDIATE
INSTITUTIONAL INVESTMENT INVESTMENT GOVERNMENT/ U.S. GOVERNMENT
CLASS SHARES-CLASS A SHARES-CLASS B CREDIT INDEX CLASSIFICATION
<S> <C> <C> <C> <C> <C>
4/92 $10,000 $ 9,600 $10,000 $10,000 $10,000
10/92 10,640 10,215 10,640 10,620 10,557
10/93 11,536 11,075 11,536 11,675 11,563
10/94 11,176 10,729 11,176 11,449 11,087
10/95 12,399 11,903 12,399 12,883 12,495
10/96 12,949 12,431 12,949 13,632 13,089
10/97 13,780 13,228 13,780 14,653 14,068
10/98 14,941 14,320 14,916 15,987 15,276
10/99 14,932 14,261 15,110 16,145 15,148
10/00 15,901 15,148 15,947 17,185 16,101
<FN>
* INSTITUTIONAL SHARES OF THE FUND WERE OFFERED BEGINNING JUNE 13, 1997 AND
CLASS B SHARES OF THE FUND WERE OFFERED BEGINNING NOVEMBER 16, 1998. THE
PERFORMANCE INFORMATION SHOWN PRIOR TO THAT REPRESENTS PERFORMANCE OF CLASS
A SHARES, WHICH WERE OFFERED BEGINNING APRIL 20, 1992. FOR INSTITUTIONAL
SHARES, THE PRIOR CLASS A SHARES PERFORMANCE REFLECTS THE MAXIMUM FRONT-END
SALES CHARGE AND RULE 12B-1 FEES ON CLASS A SHARES, NEITHER OF WHICH
APPLIES TO INSTITUTIONAL SHARES. FOR CLASS B SHARES, THE PRIOR CLASS A
SHARES PERFORMANCE REFLECTS THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE ON
CLASS B SHARES, BUT DOES NOT REFLECT CLASS B SHARES' HIGHER RULE 12B-1
FEES. HAD THAT ADJUSTMENT BEEN MADE, PERFORMANCE WOULD HAVE BEEN LOWER.
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.
</FN>
</TABLE>
8 OCTOBER 31, 2000
<PAGE>
EXPEDITION TAX-FREE INVESTMENT GRADE BOND FUND
MANAGEMENT'S DISCUSSION AND ANALYSIS
From its inception on March 3, 2000 to October 31, 2000, the Expedition Tax-Free
Investment Grade Bond Fund (Institutional Shares) generated a total return of
6.84%. This compares to a 5.10% return for the Lehman Municipal Bond Index and a
4.04% return for the Lipper Intermediate Municipal Debt Average.
During this period, fixed income investors had more to worry about than just the
Federal Reserve Board, as the six E's - the Economy, Earnings, the Euro, Energy,
the Middle East and the Election - created both anxiety and opportunity. These
concerns led to uneven performance for the municipal bond markets, as investor
sentiment swung from pessimism to optimism on a regular basis.
Throughout the period, the Fund continued to employ a disciplined investment
process that seeks relative value through a combination of security research,
market analysis, economic review, and a duration-neutral strategy. This process
led to positive overall performance for the Fund, while our strict selection
criteria helped to minimize price risk.
Looking ahead, we believe that the overall outlook for interest rates remains
favorable. Economic growth is slowing, underlying inflation is still low in
spite of recent oil price shocks, productivity gains continue to offset labor
cost increases, and the Federal Reserve appears ready to ease rates.
In addition, we believe that tax-free investments continue to offer compelling
value tax-sensitive investors, due to supply and demand factors, as well as
demographic trends that are increasing the number of affluent individuals.
With all of these factors in mind, we will continue to pursue our approach of
seeking competitive returns for investors while working to minimize risk.
OCTOBER 31, 2000 9
<PAGE>
EXPEDITION TAX-FREE INVESTMENT GRADE BOND FUND
MANAGEMENT'S DISCUSSION AND ANALYSIS
--------------------------------------------------------------------------------
EXPEDITION TAX-FREE INVESTMENT GRADE BOND FUND
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
--------------------------------------------------------------------------------
Cumulative
Inception to
Date
--------------------------------------------------------------------------------
Institutional Shares 6.84%
--------------------------------------------------------------------------------
Investment Shares - Class A 5.95%
--------------------------------------------------------------------------------
Investment Shares - Class A w/load 1.70%
--------------------------------------------------------------------------------
Investment Shares - Class B 3.16%
--------------------------------------------------------------------------------
Investment Shares - Class B w/load -1.84%
--------------------------------------------------------------------------------
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE EXPEDITION
TAX-FREE INVESTMENT GRADE BOND FUND, INSTITUTIONAL SHARES OR INVESTMENT
SHARES-CLASS A, VERSUS THE LEHMAN MUNICIPAL INDEX, AND THE LIPPER GENERAL
MUNICIPAL DEBT CLASSIFICATION.
[Chart Omitted]
Plot points are as follows:
<TABLE>
<CAPTION>
EXPEDITION TAX-FREE EXPEDITION TAX-FREE LIPPER GENERAL
INVESTMENT GRADE BOND FUND INVESTMENT GRADE BOND FUND LEHMAN MUNICIPAL DEBT
INSTITUTIONAL SHARES INVESTMENT SHARES-CLASS A MUNICIPAL INDEX CLASSIFICATION
<S> <C> <C> <C> <C>
3/31/00 $10,000 $ 9,600 $10,000 $10,000
10/00 10,462 10,019 10,510 10,440
<FN>
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.
</FN>
</TABLE>
10 OCTOBER 31, 2000
<PAGE>
EXPEDITION MONEY MARKET FUND
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the twelve month period ended October 31, 2000, the Expedition Money Market
Fund (Institutional Shares) generated a total return of 5.96%. This compares to
a 5.53% return for the Lipper Money Market Mutual Fund Average.
Money market investors enjoyed yet another year of strong returns, thanks to
four rate hikes, totaling 1.25%, by the Federal Reserve Board. Most of these
increases took place during the first half of the fiscal year. After that time,
the Fed essentially allowed rising oil prices and election-year concerns to
assume the task of dampening economic growth.
For much of the period, the Expedition Money Market Fund maintained a relatively
conservative stance, with assets concentrated in 30 to 60 day commercial paper
and corporate notes of six months to one year. The remainder of the Fund was
invested in overnight repurchase agreements. This approach enabled us to take
advantage of higher rates as they became available, leading to a strong overall
return for the year.
Looking ahead, we believe that the Fed may have leaned a bit too hard on the
brakes, raising the possibility of a small rate cut in the year ahead.
Complicating this forecast are the prospects of a tax cut proposal under the new
Bush administration, which could cause the Fed to consider further tightening.
In this environment of uncertainty, we plan to maintain our conservative
position, which offers the potential for strong after-inflation yields while
keeping our options open for the future.
OCTOBER 31, 2000 11
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the twelve month period ended October 31, 2000, the Expedition Tax-Free
Money Market Fund (Institutional Shares) generated a total return of 3.80%. This
compares to a 3.41% 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.
From late 1999 until the spring of 2000, U.S. economic expansion remained
exceptionally robust. Strong consumer spending, a boom in housing starts, and a
tight labor market, all gave the Federal Reserve Board cause for concern on
future levels of inflation. As a result, the Federal Reserve raised short-term
rates by 0.25% on November 16, 1999, February 2nd and March 21st, and by 0.50%
on May 16th. In addition, the Fed maintained its bias toward keeping inflation
in check through the remainder of the year.
Their efforts succeeded. While the economy remains healthy, reduced optimism
among purchasing managers, weak durable good orders, and declining new home
sales reflect a needed slowdown.
During most of fiscal 2000, yields on short-term municipal securities rose along
with each of the Fed increases. However, as we approached October 31st, yields
on one-year municipal notes declined in conjunction with the slowing economy.
For much of the year, the Fund maintained an average life of 45 days, with the
majority of assets invested in highly liquid variable-rate demand obligations.
These obligations, along with our strict quality guidelines, helped cushion the
portfolio against events and trends in the financial markets.
Looking ahead, we believe that the combination of slower growth and continued
productivity increases may allow the Federal Reserve to bring interest rates
down in the upcoming year. And while this may result in somewhat lower yields,
we believe the long-term effects of a well-balanced economy will be positive for
our investors.
12 OCTOBER 31, 2000
<PAGE>
EXPEDITION EQUITY FUND
STATEMENT OF NET ASSETS
VALUE
DESCRIPTION SHARES (000)
-----------------------------------------------------------------------------
COMMON STOCKS - 99.5%
AIRLINES - 2.2%
Southwest Airlines 350,000 $ 9,975
-----------------------------------------------------------------------------
TOTAL AIRLINES 9,975
-----------------------------------------------------------------------------
AUTOMOTIVE - 2.1%
Ford Motor 370,000 9,666
------------------------------------------------------------------------------
TOTAL AUTOMOTIVE 9,666
-----------------------------------------------------------------------------
BANKS - 5.4%
Citigroup 263,666 13,875
Mellon Financial 220,000 10,615
-----------------------------------------------------------------------------
TOTAL BANKS 24,490
-----------------------------------------------------------------------------
BROADCASTING, NEWSPAPERS & ADVERTISING - 5.5%
Omnicom Group 150,999 13,930
Univision Communications, Cl A* 286,130 10,944
-----------------------------------------------------------------------------
TOTAL BROADCASTING, NEWSPAPERS & ADVERTISING 24,874
-----------------------------------------------------------------------------
COMPUTERS & SERVICES - 8.5%
EMC* 150,000 13,359
International Business Machines 117,000 11,524
Sun Microsystems* 122,000 13,527
-----------------------------------------------------------------------------
TOTAL COMPUTERS & SERVICES 38,410
-----------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 2.8%
JP Morgan 76,000 12,578
-----------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 12,578
-----------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING - 6.2%
General Electric 266,000 14,580
Tyco International Ltd. 239,000 13,548
------------------------------------------------------------------------------
TOTAL DIVERSIFIED MANUFACTURING 28,128
-----------------------------------------------------------------------------
ELECTRICAL SERVICES - 1.3%
Calpine* 76,000 5,999
-----------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 5,999
-----------------------------------------------------------------------------
ELECTRONIC COMPONENTS - 1.9%
Solectron* 193,002 8,492
-----------------------------------------------------------------------------
TOTAL ELECTRONIC COMPONENTS 8,492
-----------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO - 2.9%
Anheuser-Busch 290,000 13,268
-----------------------------------------------------------------------------
TOTAL FOOD, BEVERAGE & TOBACCO 13,268
-----------------------------------------------------------------------------
OCTOBER 31, 2000 13
<PAGE>
EXPEDITION EQUITY FUND
STATEMENT OF NET ASSETS
VALUE
DESCRIPTION SHARES (000)
-----------------------------------------------------------------------------
GAS/NATURAL GAS - 1.5%
Enron 85,000 $ 6,975
-----------------------------------------------------------------------------
TOTAL GAS/NATURAL GAS 6,975
-----------------------------------------------------------------------------
INSURANCE - 5.5%
American International Group 125,000 12,250
Marsh & McLennan 98,000 12,814
-----------------------------------------------------------------------------
TOTAL INSURANCE 25,064
-----------------------------------------------------------------------------
METALS-ALUMINUM - 2.2%
Alcoa 345,000 9,897
-----------------------------------------------------------------------------
TOTAL METALS-ALUMINUM 9,897
-----------------------------------------------------------------------------
MULTIMEDIA - 2.7%
Time Warner 160,365 12,173
-----------------------------------------------------------------------------
TOTAL MULTIMEDIA 12,173
-----------------------------------------------------------------------------
NETWORKING PRODUCTS - 3.1%
Cisco Systems* 260,000 14,008
-----------------------------------------------------------------------------
TOTAL NETWORKING PRODUCTS 14,008
-----------------------------------------------------------------------------
OIL FIELD SERVICES - 3.1%
Noble Drilling* 138,000 5,736
Schlumberger Ltd. 107,000 8,145
-----------------------------------------------------------------------------
TOTAL OIL FIELD SERVICES 13,881
-----------------------------------------------------------------------------
PETROLEUM REFINING - 3.8%
Coastal 87,000 6,563
Exxon Mobil 119,375 10,647
-----------------------------------------------------------------------------
TOTAL PETROLEUM REFINING 17,210
-----------------------------------------------------------------------------
PHARMACEUTICALS - 12.8%
Allergan 132,000 11,096
Bristol-Myers Squibb 146,000 8,897
Medicis Pharmaceutical, Cl A* 101,470 7,471
Medimmune* 152,000 9,937
Merck 107,000 9,623
Pfizer 248,000 10,711
-----------------------------------------------------------------------------
TOTAL PHARMACEUTICALS 57,735
-----------------------------------------------------------------------------
RETAIL - 3.0%
Wal-Mart Stores 296,000 13,431
-----------------------------------------------------------------------------
TOTAL RETAIL 13,431
-----------------------------------------------------------------------------
14 OCTOBER 31, 2000
<PAGE>
EXPEDITION EQUITY FUND
STATEMENT OF NET ASSETS
SHARES/FACE VALUE
DESCRIPTION AMT.(000) (000)
-----------------------------------------------------------------------------
SEMI-CONDUCTORS/INSTRUMENTS - 5.8%
Atmel* 460,000 $ 6,871
JDS Uniphase* 120,000 9,773
STMicroelectronics 180,000 9,349
-----------------------------------------------------------------------------
TOTAL SEMI-CONDUCTORS/INSTRUMENTS 25,993
-----------------------------------------------------------------------------
SOFTWARE & PROGRAMMING - 5.1%
Rational Software* 170,000 10,147
Siebel Systems* 125,010 13,118
-----------------------------------------------------------------------------
TOTAL SOFTWARE & PROGRAMMING 23,265
-----------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS - 10.6%
Comverse Technology* 106,000 11,846
Nortel Networks 210,000 9,555
Polycom* 105,050 6,828
Telefonos de Mexico ADR 167,000 9,008
Vodafone Group ADR 254,000 10,811
-----------------------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATIONS 48,048
-----------------------------------------------------------------------------
TESTING LABORATORIES - 1.5%
Quest Diagnostics* 70,150 6,752
-----------------------------------------------------------------------------
TOTAL TESTING LABORATORIES 6,752
-----------------------------------------------------------------------------
TOTAL COMMON STOCKS
(COST $339,608) 450,312
-----------------------------------------------------------------------------
REPURCHASE AGREEMENT - 1.0%
JP Morgan 6.500%, dated 10/31/00, matures
11/01/00, repurchase price $4,508,814
(collateralized by U.S. Treasury Note,
par value $4,588,000, 5.500%, matures
08/31/01: market value $4,598,621) $4,508 4,508
-----------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $4,508) 4,508
-----------------------------------------------------------------------------
TOTAL INVESTMENTS - 100.5%
(COST $344,116) 454,820
-----------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET - (0.5%) (2,224)
-----------------------------------------------------------------------------
OCTOBER 31, 2000 15
<PAGE>
EXPEDITION EQUITY FUND
STATEMENT OF NET ASSETS
VALUE
DESCRIPTION (000)
-----------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Class (unlimited
authorization -- no par value) based on
29,619,557 outstanding shares of beneficial interest $257,547
Portfolio Capital of Investment Shares - Class A (unlimited
authorization -- no par value) based on 711,385
outstanding shares of beneficial interest 8,524
Portfolio Capital of Investment Shares - Class B (unlimited
authorization -- no par value) based on 1,459,070
outstanding shares of beneficial interest 18,919
Accumulated net realized gain on investments 56,902
Net unrealized appreciation on investments 110,704
-----------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $452,596
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INSTITUTIONAL CLASS $14.25
-----------------------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE --
INVESTMENT SHARES CLASS - CLASS A $14.18
-----------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE --
INVESTMENT SHARES CLASS - CLASS A (1) $14.77
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INVESTMENT SHARES CLASS - CLASS B $13.95
-----------------------------------------------------------------------------
(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
ADR -- American Depository Receipt
Cl -- Class
Ltd. -- Limited
The accompanying notes are an integral part of the financial statements.
16 OCTOBER 31, 2000
<PAGE>
EXPEDITION EQUITY INCOME FUND
STATEMENT OF NET ASSETS
VALUE
DESCRIPTION SHARES (000)
-----------------------------------------------------------------------------
COMMON STOCKS - 96.2%
AEROSPACE/DEFENSE EQUIPMENT - 3.7%
Lockheed Martin 16,700 $ 599
United Technologies 10,110 706
-----------------------------------------------------------------------------
TOTAL AEROSPACE/DEFENSE EQUIPMENT 1,305
-----------------------------------------------------------------------------
BANKS - 9.9%
Bank of New York 20,500 1,180
Chase Manhattan 26,300 1,197
Citigroup 9,520 501
State Street 4,830 602
-----------------------------------------------------------------------------
TOTAL BANKS 3,480
-----------------------------------------------------------------------------
BROADCASTING, NEWSPAPERS & ADVERTISING - 2.5%
New York Times 23,710 871
-----------------------------------------------------------------------------
TOTAL BROADCASTING, NEWSPAPERS & ADVERTISING 871
-----------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING - 2.8%
General Electric 18,000 987
-----------------------------------------------------------------------------
TOTAL DIVERSIFIED MANUFACTURING 987
-----------------------------------------------------------------------------
ELECTRICAL SERVICES - 6.0%
FPL Group 15,000 990
Southern 37,955 1,115
-----------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 2,105
-----------------------------------------------------------------------------
ELECTRONIC COMPONENTS - 2.1%
Solectron* 16,475 725
-----------------------------------------------------------------------------
TOTAL ELECTRONIC COMPONENTS 725
-----------------------------------------------------------------------------
FINANCIAL SERVICES - 9.1%
Alliance Capital Management Holding 23,235 1,115
American Express 19,000 1,140
ING Capital Funding Preferred Stock 41,000 935
-----------------------------------------------------------------------------
TOTAL FINANCIAL SERVICES 3,190
-----------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO - 2.2%
Pepsico 15,650 758
-----------------------------------------------------------------------------
TOTAL FOOD, BEVERAGE & TOBACCO 758
-----------------------------------------------------------------------------
GAS/NATURAL GAS - 2.5%
Williams 21,250 889
-----------------------------------------------------------------------------
TOTAL GAS/NATURAL GAS 889
-----------------------------------------------------------------------------
OCTOBER 31, 2000 17
<PAGE>
EXPEDITION EQUITY INCOME FUND
STATEMENT OF NET ASSETS
VALUE
DESCRIPTION SHARES (000)
-----------------------------------------------------------------------------
INSURANCE - 6.5%
American International Group 10,585 $ 1,037
Marsh & McLennan 9,540 1,247
-----------------------------------------------------------------------------
TOTAL INSURANCE 2,284
-----------------------------------------------------------------------------
MEASURING DEVICES - 1.9%
PE Biosystems Group 5,780 676
-----------------------------------------------------------------------------
TOTAL MEASURING DEVICES 676
-----------------------------------------------------------------------------
MEDICAL PRODUCTS & SERVICES - 2.1%
Baxter International 8,940 735
-----------------------------------------------------------------------------
TOTAL MEDICAL PRODUCTS & SERVICES 735
-----------------------------------------------------------------------------
METALS-ALUMINUM - 2.3%
Alcoa 27,720 795
-----------------------------------------------------------------------------
TOTAL METALS-ALUMINUM 795
-----------------------------------------------------------------------------
MISCELLANEOUS BUSINESS SERVICES - 2.7%
Automatic Data Processing 14,300 934
-----------------------------------------------------------------------------
TOTAL MISCELLANEOUS BUSINESS SERVICES 934
-----------------------------------------------------------------------------
MISCELLANEOUS MANUFACTURING - 3.2%
Minnesota Mining & Manufacturing 11,530 1,114
-----------------------------------------------------------------------------
TOTAL MISCELLANEOUS MANUFACTURING 1,114
-----------------------------------------------------------------------------
MULTIMEDIA - 2.9%
Viacom, Cl B* 18,000 1,024
-----------------------------------------------------------------------------
TOTAL MULTIMEDIA 1,024
-----------------------------------------------------------------------------
OIL FIELD SERVICES - 2.9%
Anadarko Petroleum 15,735 1,008
-----------------------------------------------------------------------------
TOTAL OIL FIELD SERVICES 1,008
-----------------------------------------------------------------------------
PETROLEUM REFINING - 6.2%
Exxon Mobil 13,365 1,192
Royal Dutch Petroleum ADR 16,710 992
-----------------------------------------------------------------------------
TOTAL PETROLEUM REFINING 2,184
-----------------------------------------------------------------------------
PHARMACEUTICALS - 1.3%
Merck 4,930 443
-----------------------------------------------------------------------------
TOTAL PHARMACEUTICALS 443
-----------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUST - 2.7%
Crescent Real Estate EQT 47,540 957
-----------------------------------------------------------------------------
TOTAL REAL ESTATE INVESTMENT TRUST 957
-----------------------------------------------------------------------------
18 OCTOBER 31, 2000
<PAGE>
EXPEDITION EQUITY INCOME FUND
STATEMENT OF NET ASSETS
SHARES/FACE VALUE
DESCRIPTION AMT.(000) (000)
-----------------------------------------------------------------------------
RETAIL - 1.9%
Wal-Mart Stores 15,130 $ 687
-----------------------------------------------------------------------------
TOTAL RETAIL 687
-----------------------------------------------------------------------------
SEMI-CONDUCTORS/INSTRUMENTS - 1.9%
Texas Instruments 13,920 683
-----------------------------------------------------------------------------
TOTAL SEMI-CONDUCTORS/INSTRUMENTS 683
-----------------------------------------------------------------------------
SOFTWARE & PROGRAMMING - 1.6%
Peoplesoft* 13,000 567
-----------------------------------------------------------------------------
TOTAL SOFTWARE & PROGRAMMING 567
-----------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS - 11.9%
AT&T 27,040 627
Global Crossing Ltd.* 23,800 562
SBC Communications 14,275 824
Sprint (PCS Group)* 25,060 955
Verizon Communications 21,235 1,228
-----------------------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATIONS 4,196
-----------------------------------------------------------------------------
WHOLESALE - 3.4%
Sysco 22,750 1,187
-----------------------------------------------------------------------------
TOTAL WHOLESALE 1,187
-----------------------------------------------------------------------------
TOTAL COMMON STOCKS
(COST $30,172) 33,784
-----------------------------------------------------------------------------
REPURCHASE AGREEMENT - 3.8%
JP Morgan 6.500%, dated 10/31/00, matures
11/01/00, repurchase price $1,350,244
(collateralized by U.S. Treasury Note,
par value $1,374,000, 5.500%, matures
08/31/01: market value $1,377,181) $1,350 1,350
-----------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $1,350) 1,350
-----------------------------------------------------------------------------
TOTAL INVESTMENTS - 100.0%
(COST $31,522) 35,134
-----------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET - 0.0% (1)
-----------------------------------------------------------------------------
OCTOBER 31, 2000 19
<PAGE>
EXPEDITION EQUITY INCOME FUND
STATEMENT OF NET ASSETS
VALUE
DESCRIPTION (000)
-----------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Class (unlimited
authorization -- no par value) based on
3,196,885 outstanding shares of beneficial interest $29,134
Portfolio Capital of Investment Shares - Class A (unlimited
authorization -- no par value) based on
26,608 outstanding shares of beneficial interest 281
Portfolio Capital of Investment Shares - Class B (unlimited
authorization -- no par value) based on 39,752
outstanding shares of beneficial interest 417
Undistributed net investment income 17
Accumulated net realized gain on investments 1,672
Net unrealized appreciation on investments 3,612
-----------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $35,133
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INSTITUTIONAL CLASS $10.77
-----------------------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE --
INVESTMENT SHARES CLASS - CLASS A $10.76
-----------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE --
INVESTMENT SHARES CLASS - CLASS A (1) $11.21
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INVESTMENT SHARES CLASS - CLASS B $10.75
-----------------------------------------------------------------------------
(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
Cl -- Class
ADR -- American Depository Receipt
Ltd. -- Limited
The accompanying notes are an integral part of the financial statements.
20 OCTOBER 31, 2000
<PAGE>
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS - 48.7%
U.S. Treasury Notes
7.250%, 08/15/04 $5,000 $ 5,234
7.000%, 07/15/06 2,500 2,636
6.875%, 05/15/06 1,000 1,049
6.750%, 05/15/05 1,500 1,556
6.500%, 02/15/10 1,000 1,047
6.500%, 05/15/05 5,000 5,137
6.500%, 08/15/05 5,000 5,140
6.500%, 10/15/06 3,000 3,095
6.250%, 02/15/07 3,250 3,316
6.125%, 08/15/07 5,500 5,580
6.000%, 08/15/04 5,000 5,022
6.000%, 08/15/09 5,750 5,811
5.875%, 11/15/04 5,000 5,003
5.875%, 11/15/05 2,000 2,008
5.750%, 08/15/03 4,500 4,484
5.750%, 08/15/10 1,000 999
5.625%, 02/15/06 1,500 1,487
5.625%, 05/15/08 4,600 4,536
5.500%, 05/15/09 3,000 2,934
5.250%, 08/15/03 3,000 2,951
-----------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $68,045) 69,025
-----------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 10.7%
FHLB
6.789%, 02/05/07 1,000 1,012
FHLMC
7.000%, 03/15/10 3,000 3,066
6.835%, 01/23/07 2,000 2,028
6.800%, 03/19/07 1,000 1,013
6.625%, 09/15/09 4,515 4,487
6.510%, 01/08/07 510 509
5.950%, 01/19/06 500 487
FNMA
7.250%, 01/15/10 2,500 2,595
-----------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $14,858) 15,197
------------------------------------------------------------------------------
OCTOBER 31, 2000 21
<PAGE>
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS
FACE AMT. VALUE
DESCRIPTION (000) (000)
-----------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS - 8.3%
FHLMC, Gold Pool #E00532
6.500%, 02/01/13 $1,305 $ 1,279
FHLMC, Gold Pool #E00543
6.000%, 04/01/13 1,909 1,841
FHLMC, Gold Pool #E00584
6.000%, 11/01/13 2,907 2,803
FHLMC, Gold Pool #E00832
7.500%, 04/01/15 2,857 2,880
FHLMC, Gold Pool #E00856
7.500%, 06/01/15 2,915 2,938
-----------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS
(COST $11,902) 11,741
-----------------------------------------------------------------------------
CORPORATE BONDS - 24.9%
AUTOMOTIVE - 1.4%
Daimler-Chrysler
7.750%, 06/15/05 2,000 2,037
-----------------------------------------------------------------------------
TOTAL AUTOMOTIVE 2,037
-----------------------------------------------------------------------------
BANKS - 4.2%
Bank of America
7.875%, 05/16/05 2,000 2,055
7.125%, 09/15/06 2,000 1,991
Wells Fargo
6.625%, 07/15/04 1,000 986
6.875%, 08/08/06 1,000 984
-----------------------------------------------------------------------------
TOTAL BANKS 6,016
-----------------------------------------------------------------------------
BROKER/DEALERS - 2.0%
Merrill Lynch
6.375%, 10/15/08 1,000 937
Morgan Stanley Dean Witter
5.625%, 01/20/04 2,000 1,917
-----------------------------------------------------------------------------
TOTAL BROKER/DEALERS 2,854
-----------------------------------------------------------------------------
22 OCTOBER 31, 2000
<PAGE>
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS
FACE AMT. VALUE
DESCRIPTION (000) (000)
-----------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 6.4%
Ford Motor Credit
7.875%, 06/15/10 $2,000 $2,020
7.500%, 03/15,05 2,000 2,007
General Electric Capital
7.375%, 01/19/10 3,000 3,094
General Motors Acceptance
6.150%, 04/05/07 2,000 1,872
-----------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 8,993
-----------------------------------------------------------------------------
ELECTRICAL SERVICES - 2.0%
Georgia Power
5.500%, 12/01/05 2,000 1,862
Southern Cal Edison
6.375%, 01/15/06 1,000 950
-----------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 2,812
-----------------------------------------------------------------------------
MULTIMEDIA - 1.4%
Walt Disney
6.750%, 03/30/06 2,000 1,997
-----------------------------------------------------------------------------
TOTAL MULTIMEDIA 1,997
-----------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO - 0.1%
General Mills
8.080%, 11/18/03 60 62
-----------------------------------------------------------------------------
TOTAL FOOD, BEVERAGE & TOBACCO 62
-----------------------------------------------------------------------------
PETROLEUM REFINING - 0.7%
Amoco
6.250%, 10/15/04 1,000 991
-----------------------------------------------------------------------------
TOTAL PETROLEUM REFINING 991
-----------------------------------------------------------------------------
RETAIL - 5.4%
Lowe's
8.250%, 06/01/10 2,000 2,078
Wal-Mart Stores
7.500%, 05/15/04 2,500 2,550
6.875%, 08/10/09 3,000 2,989
-----------------------------------------------------------------------------
TOTAL RETAIL 7,617
-----------------------------------------------------------------------------
OCTOBER 31, 2000 23
<PAGE>
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS
FACE AMT. VALUE
DESCRIPTION (000) (000)
-----------------------------------------------------------------------------
TELEPHONE SERVICES - 1.3%
AT&T
5.625%, 03/15/04 $2,000 $ 1,885
-----------------------------------------------------------------------------
TOTAL TELEPHONE SERVICES 1,885
-----------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(COST $35,302) 35,264
-----------------------------------------------------------------------------
ASSET-BACKED SECURITIES - 3.3%
MBNA Master Credit Card Trust, Ser 1997-I, Cl A (A)
6.550%, 08/15/04 3,000 2,984
Standard Credit Card Master Trust, Ser 1994-2, Cl A (A)
7.250%, 04/07/06 1,725 1,754
-----------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(COST $4,741) 4,738
-----------------------------------------------------------------------------
REPURCHASE AGREEMENT - 2.5%
JP Morgan 6.500%, dated 10/31/00,
matures 11/01/00, repurchase price $3,596,649
(collateralized by U.S. Treasury Note, par value
$3,660,000, 5.500%, matures 08/31/01:
market value $3,668,473) 3,596 3,596
-----------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $3,596) 3,596
-----------------------------------------------------------------------------
TOTAL INVESTMENTS - 98.4%
(COST $138,444) 139,561
-----------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET - 1.6% 2,219
-----------------------------------------------------------------------------
24 OCTOBER 31, 2000
<PAGE>
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS
VALUE
DESCRIPTION (000)
-----------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Class (unlimited
authorization -- no par value) based on
14,029,063 outstanding shares of beneficial interest $136,742
Portfolio Capital of Investment Shares - Class A (unlimited
authorization -- no par value) based on 537,724
outstanding shares of beneficial interest 9,603
Portfolio Capital of Investment Shares - Class B (unlimited
authorization -- no par value) based on 20,961
outstanding shares of beneficial interest 208
Undistributed net investment income 1
Accumulated net realized loss on investments (5,891)
Net unrealized appreciation on investments 1,117
-----------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $141,780
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INSTITUTIONAL CLASS $9.72
-----------------------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE --
INVESTMENT SHARES CLASS - CLASS A $9.71
-----------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE --
INVESTMENT SHARES CLASS - CLASS A (1) $10.11
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INVESTMENT SHARES CLASS - CLASS B $9.72
-----------------------------------------------------------------------------
(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
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
MTN -- Medium Term Note
Ser -- Series
The accompanying notes are an integral part of the financial statements.
OCTOBER 31, 2000 25
<PAGE>
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
----------------------------------------------------------------------------
MUNICIPAL BONDS - 97.8%
ALABAMA - 10.1%
Alabama State, Public School & College Authority RB,
Capital Improvement Project
5.000%, 11/01/12 $1,000 $ 997
Alabama State, Water Pollution Control Authority RB,
Revolving Funding Loan, AMBAC
Partially Pre-Refunded @ 100 (A)
5.000%, 08/15/07 1,000 1,001
Birmingham, Capital Improvement Warrants, Ser A, GO
5.550%, 08/01/21 1,000 1,001
Birmingham, Warrants, Ser A, GO
5.900%, 06/01/18 1,000 1,027
Mobile, Water & Sewer RB, AMBAC
5.000%, 01/01/09 1,000 1,007
Montgomery, Warrants, Ser A, GO
5.100%, 10/01/09 1,000 1,020
Shelby County, Board of Education,
Capital Outlay School Warrants, AMBAC
5.500%, 02/01/08 1,000 1,039
Tuscaloosa County GO
5.500%, 10/01/03 500 512
Tuscaloosa, Warrants GO
5.650%, 01/01/17 1,000 1,014
-----------------------------------------------------------------------------
TOTAL ALABAMA 8,618
-----------------------------------------------------------------------------
ARIZONA - 3.6%
Arizona, Agricultural Import & Power
Distribution RB, Salt River Project
5.750%, 01/01/19 1,000 1,004
Arizona, Agricultural Import & Power
Distribution RB, Salt River Project, Ser C
6.250%, 01/01/19 1,000 1,032
Tucson GO, Ser 1994-D
6.250%, 07/01/14 1,000 1,076
-----------------------------------------------------------------------------
TOTAL ARIZONA 3,112
-----------------------------------------------------------------------------
CALIFORNIA - 2.4%
California State GO
5.250%, 03/01/13 1,000 1,034
California State GO, MBIA
5.000%, 02/01/18 1,000 977
-----------------------------------------------------------------------------
TOTAL CALIFORNIA 2,011
-----------------------------------------------------------------------------
26 OCTOBER 31, 2000
<PAGE>
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
----------------------------------------------------------------------------
COLORADO - 3.6%
Arapahoe County, Colorado
School District No. 005 GO
5.500%, 12/15/19 $1,000 $ 1,001
Colorado State, Water Resource & Power
Development Authority RB, Ser A
5.250%, 09/01/15 1,000 1,000
Denver, City and County GO, Ser B
5.625%, 08/01/07 1,000 1,057
-----------------------------------------------------------------------------
TOTAL COLORADO 3,058
-----------------------------------------------------------------------------
FLORIDA - 6.6%
Florida State, Board of Education
Capital Outlay GO, Ser A
5.650%, 01/01/09 500 520
Florida State, Department of Transportation
GO, Right of Way Project, Ser B
5.500%, 07/01/11 1,000 1,039
Jacksonville, Electric Authority RB,
Electric System Project, Ser Three-A
5.800%, 10/01/17 1,000 1,020
Jacksonville, Electric Authority RB,
St John River Project, Issue 2, Ser 10
5.500%, 10/01/09 1,000 1,022
Palm Beach County GO, Ser A
5.450%, 08/01/13 1,000 1,027
Tallahassee, Consolidated Utility System RB
5.625%, 10/01/14 1,000 1,020
-----------------------------------------------------------------------------
TOTAL FLORIDA 5,648
-----------------------------------------------------------------------------
GEORGIA - 2.5%
Fulton County, School District GO
5.000%, 01/01/06 1,000 1,016
Georgia State GO, Series B
6.000%, 03/01/12 1,000 1,095
-----------------------------------------------------------------------------
TOTAL GEORGIA 2,111
-----------------------------------------------------------------------------
HAWAII - 1.9%
Hawaii State GO, Ser CO, FGIC
6.000%, 03/01/08 1,000 1,077
Hawaii State GO, Ser CR, MBIA
5.250%, 04/01/11 500 512
-----------------------------------------------------------------------------
TOTAL HAWAII 1,589
-----------------------------------------------------------------------------
ILLINOIS - 7.0%
Chicago, Project & Refunding GO, Ser C, FGIC
5.500%, 01/01/19 1,000 998
OCTOBER 31, 2000 27
<PAGE>
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
------------------------------------------------------------------------------
Cook County GO, Ser B, MBIA
5.375%, 11/15/12 $1,000 $ 1,011
Illinois State GO, FGIC
5.000%, 03/01/24 1,000 910
5.250%, 06/01/18 1,000 970
Illinois State GO, MBIA
5.750%, 04/01/12 1,000 1,062
Illinois State, Sales Tax RB,
Unrefunded Balance, Ser O
6.000%, 06/15/18 1,000 1,006
-----------------------------------------------------------------------------
TOTAL ILLINOIS 5,957
-----------------------------------------------------------------------------
INDIANA - 0.6%
Indiana State, Health Facilities Financing Authority
RB, Methodist Hospital Project, Ser A, AMBAC, ETM
5.750%, 09/01/15 500 526
-----------------------------------------------------------------------------
TOTAL INDIANA 526
-----------------------------------------------------------------------------
MASSACHUSETTS - 6.1%
Massachusetts State, Consolidated Loan GO, Ser A
6.000%, 02/01/13 1,000 1,084
6.000%, 02/01/14 1,000 1,079
Massachusetts State, Consolidated Loan GO, Ser C
5.250%, 08/01/17 1,000 994
5.250%, 08/01/18 1,000 986
Route 3 North, Transportation Improvement RB, MBIA
5.750%, 06/15/18 1,000 1,025
-----------------------------------------------------------------------------
TOTAL MASSACHUSETTS 5,168
-----------------------------------------------------------------------------
MINNESOTA - 0.6%
Minnesota State, Public Facilities Authority RB,
Water Pollution Control, Ser A
6.000%, 03/01/09 500 524
-----------------------------------------------------------------------------
TOTAL MINNESOTA 524
-----------------------------------------------------------------------------
NEW JERSEY - 1.2%
New Jersey State GO, Ser F
5.500%, 08/01/11 1,000 1,058
-----------------------------------------------------------------------------
TOTAL NEW JERSEY 1,058
-----------------------------------------------------------------------------
NEW YORK - 8.4%
Brookhaven GO, FGIC
5.500%, 10/01/13 500 514
New York State GO, Ser A
5.875%, 03/15/15 1,000 1,033
New York State GO, Ser C, MBIA
5.375%, 11/15/17 1,000 998
28 OCTOBER 31, 2000
<PAGE>
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT.(000) (000)
-------------------------------------------------------------------------------
New York State GO, Ser F
5.250%, 09/15/13 $ 500 $ 505
New York State, Environmental Facilities Clean Water
RB, Pooled Loan Program, Ser B
5.875%, 01/15/17 2,000 2,095
New York State, Environmental Facilities
Pollution Control RB
5.875%, 06/15/14 1,000 1,041
Triborough, Bridge & Tunnel Authority RB, Ser A
5.250%, 01/01/17 1,000 988
-----------------------------------------------------------------------------
TOTAL NEW YORK 7,174
-----------------------------------------------------------------------------
OHIO - 2.4%
Columbus GO, Ser 2
5.750%, 06/15/15 1,000 1,053
5.500%, 06/15/16 1,000 1,014
-----------------------------------------------------------------------------
TOTAL OHIO 2,067
-----------------------------------------------------------------------------
OREGON - 1.2%
Oregon State, Alternative Energy Project GO, Ser E
5.800%, 07/01/07 1,000 1,039
-----------------------------------------------------------------------------
TOTAL OREGON 1,039
-----------------------------------------------------------------------------
SOUTH CAROLINA - 1.7%
Lancaster County, School District GO, FSA
5.100%, 03/01/15 1,000 978
South Carolina State, Housing Finance & Development
Authority Mortgage RB, FHA, Ser A-1
6.200%, 07/01/09 490 513
-----------------------------------------------------------------------------
TOTAL SOUTH CAROLINA 1,491
-----------------------------------------------------------------------------
TENNESSEE - 1.2%
Memphis, Sanitation Sewer System RB
5.750%, 10/01/14 500 516
Tennessee State GO, Ser A, Pre-Refunded @ 101.50 (A)
5.700%, 03/01/04 500 524
-----------------------------------------------------------------------------
TOTAL TENNESSEE 1,040
-----------------------------------------------------------------------------
TEXAS - 23.2%
Arlington, Permanent Improvement GO
5.250%, 08/15/16 400 394
Austin, Independent School District GO
5.000%, 08/01/11 500 501
Austin, Independent School District GO,
Unrefunded Balance
5.750%, 08/01/15 1,000 1,023
OCTOBER 31, 2000 29
<PAGE>
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT.(000) (000)
-------------------------------------------------------------------------------
Collin County, Permanent Improvement GO, Ser A
5.400%, 02/15/14 $1,025 $ 1,038
Collin County, Texas Highway Improvement GO
5.500%, 02/15/18 1,000 1,000
Comal, Independent School District GO
5.500%, 02/01/09 750 773
Dallas GO
5.250%, 02/15/14 1,000 1,003
Dallas, Independent School District GO
5.250%, 08/15/12 1,000 1,018
Fort Bend, Independent School District GO,
Pre-Refunded @ 100 (A)
5.800%, 02/15/05 975 1,021
Fort Worth, Certificates GO
5.625%, 03/01/13 1,000 1,016
5.750%, 03/01/16 1,000 1,016
Garland, Independent School District GO
5.400%, 02/15/13 475 483
Harris County, Certificates GO
5.125%, 10/01/17 500 481
Houston, Independent School District GO
5.375%, 08/15/17 1,000 994
5.500%, 08/15/09 545 555
Houston, Public Improvement Project GO, Ser A
5.250%, 03/01/12 500 504
Houston, Water & Sewer System RB, MBIA
5.000%, 12/01/18 520 485
Lamar, Consolidated Independent School District GO
5.500%, 02/15/15 500 507
Lower Colorado River Authority RB, Ser A
5.875%, 05/15/16 1,000 1,044
San Antonio, Certificates GO, Ser A
5.125%, 02/01/17 515 495
San Antonio, Electric & Gas RB, Unrefunded Balance
5.600%, 02/01/14 1,000 1,024
San Antonio, River Authority Improvement RB,
Channel Project, FSA
5.500%, 07/01/10 700 722
Texas State, Public Finance Authority GO
5.000%, 10/01/12 500 499
Texas State, Water Development Board RB,
Revolving Fund
6.000%, 07/15/13 1,000 1,038
Texas State, Water Development Board RB,
Revolving Fund, Ser A
5.500%, 07/15/10 660 682
30 OCTOBER 31, 2000
<PAGE>
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT.(000) (000)
-----------------------------------------------------------------------------
Texas State, Water Development Board RB,
Revolving Fund, Ser B
5.000%, 07/15/15 $ 500 $ 487
-----------------------------------------------------------------------------
TOTAL TEXAS 19,803
-----------------------------------------------------------------------------
VIRGINIA - 2.2%
Newport News GO, Ser A, MBIA
5.625%, 07/01/15 795 815
Virginia, Commonwealth Transportation Board RB,
Northern Virginia Transportation Program, Ser A
5.500%, 05/15/15 1,000 1,025
-----------------------------------------------------------------------------
TOTAL VIRGINIA 1,840
-----------------------------------------------------------------------------
WASHINGTON - 7.7%
Seattle, Municipal Light & Power RB
5.500%, 11/01/13 460 467
Seattle, Water System RB, Ser B
5.750%, 07/01/15 1,000 1,038
Washington State GO, Ser A
5.625%, 07/01/22 1,000 1,001
Washington State GO, Ser B
6.000%, 01/01/13 1,000 1,066
5.750%, 05/01/18 250 253
Washington State GO, Ser C
5.500%, 07/01/18 1,000 1,010
Washington State GO, Ser DD-14 & Ser B
5.000%, 09/01/13 750 737
Washington State, Higher Education Facilities RB,
Gonzaga University Project, MBIA
5.000%, 04/01/17 1,000 951
-----------------------------------------------------------------------------
TOTAL WASHINGTON 6,523
-----------------------------------------------------------------------------
WEST VIRGINIA - 1.2%
West Virginia GO, MBIA
5.625%, 06/01/18 1,000 1,011
-----------------------------------------------------------------------------
TOTAL WEST VIRGINIA 1,011
-----------------------------------------------------------------------------
WISCONSIN - 2.4%
Wisconsin State GO, Ser A
5.600%, 05/01/15 1,000 1,023
Wisconsin State GO, Ser C
5.500%, 05/01/19 1,000 999
-----------------------------------------------------------------------------
TOTAL WISCONSIN 2,022
-----------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(COST $82,076) 83,390
-----------------------------------------------------------------------------
OCTOBER 31, 2000 31
<PAGE>
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT.(000) (000)
-----------------------------------------------------------------------------
OTHER INVESTMENT COMPANIES - 1.3%
Expedition Tax-Free Money Market Fund 1,064,892 $ 1,065
-----------------------------------------------------------------------------
TOTAL OTHER INVESTMENT COMPANIES
(COST $1,065) 1,065
-----------------------------------------------------------------------------
TOTAL INVESTMENTS - 99.1%
(COST $83,141) 84,455
-----------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET - 0.9% 800
-----------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Class (unlimited
authorization -- no par value) based on 8,173,444
outstanding shares of beneficial interest 83,579
Portfolio Capital of Investment Shares - Class A (unlimited
-- no par value) based on 50,449 outstanding shares of
beneficial interest 509
Portfolio Capital of Investment Shares - Class B (unlimited
authorization-- no par value) based on 262 outstanding
shares of beneficial interest 3
Accumulated net realized loss on investments (150)
Net unrealized appreciation on investments 1,314
-----------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $85,255
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INSTITUTIONAL CLASS $10.37
-----------------------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE --
INVESTMENT SHARES CLASS - CLASS A $10.36
-----------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE --
INVESTMENT SHARES CLASS - CLASS A (1) $10.79
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INVESTMENT SHARES CLASS - CLASS B $10.37
-----------------------------------------------------------------------------
32 OCTOBER 31, 2000
<PAGE>
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
(1) The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 4.00%.
(A) Pre-Refunded Security -- the maturity date shown on the Statement of Net
Assets is the pre-refunded date.
AMBAC -- American Municipal Bond Assurance Company
ETM -- Escrowed to Maturity
FGIC -- Financial Guaranty Insurance Corporation
FHA -- Federal Housing Administration
FSA -- Financial Secuity Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
RB -- Revenue Bond
Ser -- Series
The accompanying notes are an integral part of the financial statements.
OCTOBER 31, 2000 33
<PAGE>
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT.(000) (000)
-----------------------------------------------------------------------------
COMMERCIAL PAPER - 76.6%
BANKS - 6.5%
Bank of America
6.470%, 12/21/00 $10,000 $ 9,910
Suntrust Banks
6.470%, 11/09/00 3,000 2,996
6.480%, 11/20/00 6,000 5,980
6.460%, 12/04/00 7,000 6,959
6.470%, 12/12/00 6,000 5,956
-----------------------------------------------------------------------------
TOTAL BANKS 31,801
-----------------------------------------------------------------------------
BEAUTY PRODUCTS - 2.0%
Gillette
6.490%, 01/11/01 10,000 9,872
-----------------------------------------------------------------------------
TOTAL BEAUTY PRODUCTS 9,872
-----------------------------------------------------------------------------
BROKER/DEALERS - 10.4%
Bear Stearns
6.480%, 11/02/00 7,000 6,999
6.550%, 01/05/01 5,000 4,941
Goldman Sachs
6.480%, 11/13/00 5,000 4,989
6.520%, 02/16/01 2,000 1,961
Merrill Lynch
6.520%, 01/18/01 7,000 6,901
6.530%, 01/19/01 7,000 6,900
Morgan Stanley Dean Witter
6.470%, 12/14/00 8,000 7,938
6.500%, 01/31/01 10,000 9,836
-----------------------------------------------------------------------------
TOTAL BROKER/DEALERS 50,465
-----------------------------------------------------------------------------
ELECTRICAL SERVICES - 4.5%
Georgia Power
6.500%, 11/14/00 5,000 4,988
Southern Cal Edison
6.460%, 11/08/00 7,000 6,991
6.510%, 01/30/01 10,000 9,837
-----------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 21,816
-----------------------------------------------------------------------------
34 OCTOBER 31, 2000
<PAGE>
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT.(000) (000)
-----------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 17.4%
American General Finance
6.500%, 01/12/01 $6,000 $ 5,922
6.520%, 01/17/01 7,000 6,902
6.480%, 11/10/00 8,000 7,987
Associates Corporation of North America
6.570%, 01/10/01 3,300 3,258
Ford Motor Credit
6.470%, 12/05/00 8,000 7,951
General Electric Capital
6.510%, 01/18/01 5,000 4,929
6.520%, 01/24/01 5,000 4,924
General Motors Acceptance
6.440%, 12/11/00 5,000 4,964
Toyota Motor Credit
6.440%, 12/08/00 5,000 4,967
Transamerica Financial
6.500%, 02/05/01 8,000 7,861
6.480%, 11/09/00 5,000 4,993
6.490%, 12/12/00 5,000 4,963
Wells Fargo
6.460%, 11/03/00 8,000 7,997
6.470%, 11/17/00 7,000 6,980
-----------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 84,598
-----------------------------------------------------------------------------
FUNDING CORPORATIONS - 21.3%
Centric Capital
6.530%, 01/26/01 3,000 2,953
6.520%, 02/28/01 5,660 5,538
6.540%, 11/01/00 6,200 6,200
6.500%, 11/03/00 5,000 4,998
Falcon Asset Securitization
6.530%, 01/22/01 7,000 6,896
6.500%, 11/15/00 7,310 7,292
Falcon Asset Securitization
6.500%, 11/01/00 6,000 6,000
Madison Funding
6.530%, 11/13/00 7,000 6,985
6.500%, 12/06/00 7,000 6,956
6.500%, 12/21/00 7,000 6,937
Preferred Receivables Funding
6.500%, 11/15/00 8,000 7,980
6.480%, 12/01/00 7,000 6,962
6.500%, 11/28/00 7,000 6,966
OCTOBER 31, 2000 35
<PAGE>
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT.(000) (000)
----------------------------------------------------------------------------
Receivables Capital
6.510%, 11/07/00 $15,000 $ 14,984
6.500%, 11/16/00 6,000 5,984
-----------------------------------------------------------------------------
TOTAL FUNDING CORPORATIONS 103,631
-----------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 2.0%
Clorox
6.450%, 11/28/00 10,000 9,952
-----------------------------------------------------------------------------
TOTAL HOUSEHOLD PRODUCTS 9,952
-----------------------------------------------------------------------------
LEASING & RENTING - 2.4%
International Lease Finance
6.440%, 12/20/00 5,000 4,956
6.450%, 02/22/01 7,000 6,858
-----------------------------------------------------------------------------
TOTAL LEASING & RENTING 11,814
-----------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATION - 7.5%
Bellsouth Telephone
6.430%, 11/07/00 7,000 6,992
6.450%, 11/27/00 8,000 7,963
6.440%, 12/01/00 5,700 5,669
SBC Communications
6.460%, 11/16/00 6,000 5,984
6.460%, 12/19/00 10,000 9,914
-----------------------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATION 36,522
-----------------------------------------------------------------------------
UTILITIES - 2.6%
National Rural Utilities
6.470%, 11/09/00 7,000 6,990
6.490%, 01/29/01 6,000 5,904
-----------------------------------------------------------------------------
TOTAL UTILITIES 12,894
-----------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(COST $373,365) 373,365
-----------------------------------------------------------------------------
CORPORATE BONDS - 13.7%
BANKS - 3.2%
Bank of America
5.750%, 03/15/01 1,000 995
6.625%, 05/30/01 2,621 2,614
Bank of America, Ser D, MTN
6.750%, 02/26/01 1,000 1,000
36 OCTOBER 31, 2000
<PAGE>
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT.(000) (000)
----------------------------------------------------------------------------
Bank of America BN
7.200%, 05/04/01 $5,000 $ 5,000
First Union
9.450%, 08/15/01 3,000 3,055
First Union BN
6.680%, 02/15/01 3,000 3,000
-----------------------------------------------------------------------------
TOTAL BANKS 15,664
-----------------------------------------------------------------------------
BROKER/DEALERS - 2.0%
Bear Stearns
5.750%, 02/15/01 1,000 997
6.750%, 05/01/01 3,000 2,991
6.250%, 12/01/00 2,482 2,481
Merrill Lynch, Ser B, MTN
6.020%, 04/16/01 1,000 997
5.950%, 08/06/01 2,000 1,985
-----------------------------------------------------------------------------
TOTAL BROKER/DEALERS 9,451
-----------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 7.7%
Associates Corporation of North America
6.625%, 05/15/01 6,500 6,484
6.750%, 08/01/01 2,000 1,994
Associates Corporation of North
America, Ser H, MTN
6.800%, 05/03/01 2,000 2,000
Associates Corporation of North
America, Ser I, MTN
7.000%, 07/23/01 2,000 2,005
Ford Motor Credit
7.000%, 09/25/01 1,500 1,502
5.125%, 10/15/01 2,220 2,188
Ford Motor Credit MTN
6.000%, 02/27/01 2,000 1,995
General Electric Capital, Ser A, MTN
5.890%, 05/11/01 1,255 1,249
5.945%, 07/23/01 1,500 1,492
General Motors Acceptance
7.125%, 05/01/01 2,000 1,998
7.000%, 08/15/01 1,650 1,650
General Motors Acceptance MTN
6.200%, 01/16/01 1,500 1,498
5.400%, 04/09/01 2,000 1,989
6.800%, 04/17/01 2,000 1,999
6.100%, 06/01/01 1,000 995
6.400%, 08/30/01 2,000 1,991
OCTOBER 31, 2000 37
<PAGE>
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT.(000) (000)
----------------------------------------------------------------------------
Transamerica Finance, Ser E, MTN
6.125%, 11/01/01 $1,454 $ 1,444
Wells Fargo Financial
5.500%, 03/19/01 2,000 1,988
5.500%, 03/19/01 1,000 996
-----------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 37,457
-----------------------------------------------------------------------------
ELECTRICAL SERVICES - 0.2%
Southern California Edison
6.500%, 06/01/01 1,000 995
-----------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 995
-----------------------------------------------------------------------------
LEASING & RENTING - 0.6%
International Lease Finance, Ser I, MTN
6.210%, 02/01/01 1,000 998
International Lease Finance, Ser K, MTN
6.780%, 09/05/01 2,000 1,999
-----------------------------------------------------------------------------
TOTAL LEASING & RENTING 2,997
-----------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(COST $66,564) 66,564
-----------------------------------------------------------------------------
U.S.GOVERNMENT OBLIGATIONS - 3.6%
Federal National Mortgage Accociation MTN
5.720%, 03/08/01 3,000 2,987
Student Loan Marketing Association (A)
6.645%, 11/16/00 5,000 5,000
6.815%, 01/18/01 5,000 5,000
6.765%, 04/19/01 4,450 4,450
-----------------------------------------------------------------------------
TOTAL U.S.GOVERNMENT OBLIGATIONS
(COST $17,437) 17,437
-----------------------------------------------------------------------------
REPURCHASE AGREEMENT - 5.5%
JP Morgan 6.500% dated, 10/31/00,
matures 11/01/00, repurchase price
$26,966,868 (collateralized by
U.S. Treasury Note, par value
$27,362,000, 6.000%, matures
09/30/02: market value $27,501,279) 26,962 26,962
-----------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $26,962) 26,962
-----------------------------------------------------------------------------
OCTOBER 31, 2000 38
<PAGE>
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS
VALUE
DESCRIPTION SHARES (000)
----------------------------------------------------------------------------
OTHER INVESTMENT COMPANIES - 0.9%
Financial Square Government Money
Market Fund 4,583,799 $ 4,584
-----------------------------------------------------------------------------
TOTAL OTHER INVESTMENT COMPANIES
(COST $4,584) 4,584
-----------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.3%
(COST $488,912) 488,912
-----------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET - (0.3%) (1,459)
-----------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Class (unlimited
authorization -- no par value) based on 130,890,224
outstanding shares of beneficial interest 130,890
Portfolio Capital of Investment Service Shares Class
(unlimited authorization -- no par value) based on
324,582,871 outstanding shares of beneficial interest 324,583
Portfolio Capital of Sweep Class Shares (unlimited
authorization -- no par value) based on 31,979,406
outstanding shares of beneficial interest 31,979
Undistributed net investment income 2
Accumulated net realized loss on investments (1)
-----------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $487,453
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INSTITUTIONAL CLASS $1.00
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INVESTMENT SERVICE SHARES CLASS $1.00
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
SWEEP CLASS SHARES $1.00
-----------------------------------------------------------------------------
(A) Variable Rate Security -- The rate reported on the Statement of Net Assets
is the rate in effect on October 31, 2000.
BN -- Bank Note
MTN -- Medium Term Note
Ser -- Series
The accompanying notes are an integral part of the financial statements.
OCTOBER 31, 2000 39
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
--------------------------------------------------------------------------------
MUNICIPAL BONDS - 100.0%
ALASKA - 0.4%
Alaska State, Housing Finance RB,
Capital Project, Ser A-2
5.000%, 12/01/00 $ 300 $ 300
Greystone, Municipal Lease Certificate
Trust Authority COP,
Ser A (A) (B) (C)
4.500%, 11/08/00 14 14
-----------------------------------------------------------------------------
TOTAL ALASKA 314
-----------------------------------------------------------------------------
ARIZONA - 1.3%
Apache County, Industrial Development Authority RB,
Tucson Electrical Power - Springerville
Project (A) (B) (C)
4.400%, 11/08/00 100 100
Arizona, Healthcare Facilities Authority RB,
Pooled Financing, Ser A (A) (B)
4.450%, 11/08/00 800 800
Greystone, Tax Exempt Certificate
Trust Authority RB,
Senior Certificate of Beneficial
Ownership Project,
Ser 1998-1 (A) (B) (C)
4.500%, 11/08/00 108 108
-----------------------------------------------------------------------------
TOTAL ARIZONA 1,008
-----------------------------------------------------------------------------
CALIFORNIA - 0.1%
Greystone, Municipal Lease Certificate
Trust Authority COP,
Ser A (A) (B) (C)
4.500%, 11/08/00 86 86
-----------------------------------------------------------------------------
TOTAL CALIFORNIA 86
-----------------------------------------------------------------------------
COLORADO - 3.4%
Denver City & County RB, Helen G. Bonfils
Foundation Project, Ser B
4.750%, 12/01/00 310 310
Greystone, Municipal Lease
Certificate Trust Authority COP,
Ser A (A) (B) (C)
4.500%, 11/08/00 2 2
SBC Metropolitan District GO (A) (B) (C)
4.000%, 12/01/00 1,555 1,555
Summit County, Recreational
Facilities Authority RB,
Copper Mountain Project (A) (B) (C)
4.550%, 11/08/00 885 885
-----------------------------------------------------------------------------
TOTAL COLORADO 2,752
-----------------------------------------------------------------------------
CONNECTICUT - 0.0%
Greystone, Municipal Lease Certificate
Trust Authority COP,
Ser A (A) (B) (C)
4.500%, 11/08/00 2 2
-----------------------------------------------------------------------------
TOTAL CONNECTICUT 2
-----------------------------------------------------------------------------
40 OCTOBER 31, 2000
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT.(000) (000)
------------------------------------------------------------------------------
DELAWARE - 0.9%
Delaware State, Economic Development Authority RB,
School House Project (A) (B) (C)
4.450%, 11/08/00 $ 750 $ 750
-----------------------------------------------------------------------------
TOTAL DELAWARE 750
-----------------------------------------------------------------------------
FLORIDA - 5.8%
Capital Trust Agency, Multi-Family
Housing Authority RB,
Community Loan Program (A) (B)
4.480%, 11/08/00 2,290 2,290
Greystone, Municipal Lease Certificate
Trust Authority COP,
Ser A (A) (B) (C)
4.500%, 11/08/00 45 45
Greystone, Tax Exempt Certificate
Trust Authority RB,
Senior Certificate of Beneficial
Ownership Project,
Ser 1998-1 (A) (B) (C)
4.500%, 11/08/00 164 164
Orange County, Industrial
Development Authority RB,
Central Florida YMCA Project (A) (B) (C)
4.400%, 11/08/00 1,600 1,600
Orange County, Industrial
Development Authority RB,
Orlando Hawaiian Motel (A) (B) (C)
4.600%, 04/01/01 545 545
-----------------------------------------------------------------------------
TOTAL FLORIDA 4,644
-----------------------------------------------------------------------------
GEORGIA - 4.0%
Fulton County, State
Development Authority RB,
Robert W. Woodruff Arts
Center Project (A) (B) (C)
4.400%, 11/08/00 250 250
Greystone, Municipal Lease Certificate
Trust Authority COP,
Ser A (A) (B) (C)
4.500%, 11/08/00 46 46
Greystone, Tax Exempt Certificate
Trust Authority RB,
Senior Certificate of Beneficial
Ownership Project,
Ser 1998-1 (A) (B) (C)
4.500%, 11/08/00 549 549
Macon-Bibb County, State
Hospital Authority RB,
Medical Center of Central
Georgia Project (A) (B) (C)
4.400%, 11/08/00 400 400
Southern Georgia, Hospital
Revenue Authority RB,
Alliance Community Hospitals Project,
Ser A, AMBAC (A) (B)
4.450%, 11/08/00 1,900 1,900
Walton County, Industrial
Development Authority RB,
Walton Monroe Mills, Ser B (A) (B) (C)
4.400%, 11/08/00 100 100
-----------------------------------------------------------------------------
TOTAL GEORGIA 3,245
-----------------------------------------------------------------------------
OCTOBER 31, 2000 41
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT.(000) (000)
------------------------------------------------------------------------------
ILLINOIS - 4.6%
East Peoria, Radnor/East Peoria Multi-Family
Housing Project RB (A) (B) (C)
4.650%, 11/08/00 $ 575 $ 575
Greystone, Municipal Lease Certificate
Trust Authority COP,
Ser A (A) (B) (C)
4.500%, 11/08/00 12 12
Illinois State, Development
Finance Authority RB,
Field Container Project (A) (B) (C)
4.400%, 11/08/00 1,900 1,900
Illinois State, Health
Facilities Authority RB,
Elmhurst Memorial Hospital
Project, Ser B (A) (B)
4.750%, 11/01/00 200 200
Orland Park, Industrial
Development Authority RB,
Orland Properties,
Ser A (A) (B) (C)
4.550%, 11/08/00 1,010 1,010
-----------------------------------------------------------------------------
TOTAL ILLINOIS 3,697
-----------------------------------------------------------------------------
INDIANA - 5.2%
Fort Wayne, Industrial & Economic Development
Authority RB, Avery International
Project (A) (B) (C)
4.525%, 11/08/00 1,000 1,000
Greystone, Municipal Lease Certificate
Trust Authority COP,
Ser A (A) (B) (C)
4.500%, 11/08/00 62 62
Howard County, Industrial &
Economic Redevelopment
Authority RB, AMBAC
4.850%, 12/15/00 430 430
Muncie, Community Schools TAW
4.650%, 12/29/00 1,500 1,500
Perry Township, Multi School Building RB,
First Mortgage, AMBAC
4.500%, 01/15/01 1,150 1,150
-----------------------------------------------------------------------------
TOTAL INDIANA 4,142
-----------------------------------------------------------------------------
IOWA - 0.1%
Iowa State, Finance Authority RB, Burlington
Medical Center Project, FSA (A) (B)
4.650%, 11/01/00 100 100
-----------------------------------------------------------------------------
TOTAL IOWA 100
-----------------------------------------------------------------------------
KANSAS - 0.1%
Greystone, Municipal Lease Certificate
Trust Authority COP,
Ser A (A) (B) (C)
4.500%, 11/08/00 1 1
42 OCTOBER 31, 2000
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT.(000) (000)
----------------------------------------------------------------------------
Greystone, Tax Exempt Certificate
Trust Authority RB,
Senior Certificate of Beneficial
Ownership Project,
Ser 1998-1 (A) (B) (C)
4.500%, 11/08/00 $ 81 $ 81
-----------------------------------------------------------------------------
TOTAL KANSAS 82
-----------------------------------------------------------------------------
KENTUCKY - 2.8%
Greystone, Municipal Lease
Certificate Trust Authority COP,
Ser A (A) (B) (C)
4.500%, 11/08/00 23 23
Lexington-Fayette Urban County,
Government Industrial
Building Authority RB, American Horse Shows
Association Project (A) (B) (C)
4.500%, 11/08/00 2,185 2,185
-----------------------------------------------------------------------------
TOTAL KENTUCKY 2,208
-----------------------------------------------------------------------------
MAINE - 0.1%
Greystone, Municipal Lease
Certificate Trust Authority COP,
Ser A (A) (B) (C)
4.500%, 11/08/00 50 50
-----------------------------------------------------------------------------
TOTAL MAINE 50
-----------------------------------------------------------------------------
MASSACHUSETTS - 0.0%
Greystone, Municipal Lease
Certificate Trust Authority COP,
Ser A (A) (B) (C)
4.500%, 11/08/00 8 8
-----------------------------------------------------------------------------
TOTAL MASSACHUSETTS 8
-----------------------------------------------------------------------------
MICHIGAN - 3.9%
Greystone, Municipal Lease
Certificate Trust Authority COP,
Ser A (A) (B) (C)
4.500%, 11/08/00 68 68
Jackson County, Economic
Development Limited
Obligation RB, Thrifty Leoni
Inc. Project (A) (B) (C)
4.650%, 11/08/00 1,000 1,000
McDonald Tax-Exempt Mortgage
Trust (A) (B) (C)
4.750%, 06/15/01 135 135
Michigan State, Job Development Authority RB,
East Lansing Residential Project (A) (B) (C)
4.200%, 11/08/00 900 900
Pinckney, Community Schools GO
4.900%, 06/29/01 1,000 1,001
-----------------------------------------------------------------------------
TOTAL MICHIGAN 3,104
-----------------------------------------------------------------------------
MINNESOTA - 5.6%
Greystone, Municipal Lease
Certificate Trust Authority COP,
Ser A (A) (B) (C)
4.500%, 11/08/00 8 8
OCTOBER 31, 2000 43
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT. (000) (000)
----------------------------------------------------------------------------
Minneapolis & St Paul, State Housing & Redevelopment
Authority RB, Childrens Healthcare System Project,
Ser B, FSA (A) (B)
4.650%, 11/01/00 $2,000 $ 2,000
Minnesota State, Capital Realty Investments Trust RB,
Ser 96-1 (A) (B) (C)
4.620%, 11/08/00 1,500 1,500
St. Paul, Port Authority Industrial Development RB,
Minnesota Divers Industrial Project, Ser 1 (A) (B) (C)
4.510%, 11/08/00 1,000 1,000
-----------------------------------------------------------------------------
TOTAL MINNESOTA 4,508
-----------------------------------------------------------------------------
MISSOURI - 10.7%
Clayton, Industrial Development Authority RB,
Bailey Court Project (A) (B) (C)
4.480%, 11/08/00 500 500
Jackson County, Industrial
Development Authority RB,
YMCA Greater Kansas City Project,
Ser A (A) (B) (C)
4.750%, 11/01/00 1,250 1,250
Kansas City, Industrial Development Authority,
Multi-Family Housing Authority RB, Cloverset
Apartment Program (A) (B) (C)
4.700%, 11/08/00 1,455 1,455
Kansas City, Industrial Development Authority,
Multi-Family Housing Authority RB,
Springs Apartment
Project (A) (B) (C)
4.500%, 11/08/00 1,750 1,750
Missouri State, Health & Education
Facilities Authority RB,
Kansas-City Art Institute
Project (A) (B) (C)
4.750%, 11/01/00 1,700 1,700
St. Louis, Grantor Trust 1 RB,
Ser 1996-A (A) (B) (C)
4.500%, 11/08/00 1,000 1,000
St. Louis, Industrial Development
Authority RB,
Schnuck Markets-Kirkwood
Project (A) (B) (C)
4.525%, 11/08/00 900 900
-----------------------------------------------------------------------------
TOTAL MISSOURI 8,555
-----------------------------------------------------------------------------
NEW HAMPSHIRE - 0.0%
Greystone, Municipal Lease Certificate
Trust Authority COP,
Ser A (A) (B) (C)
4.500%, 11/08/00 35 35
-----------------------------------------------------------------------------
TOTAL NEW HAMPSHIRE 35
-----------------------------------------------------------------------------
NEW JERSEY - 0.8%
Greystone, Municipal Lease Certificate
Trust Authority COP,
Ser A (A) (B) (C)
4.500%, 11/08/00 156 156
44 OCTOBER 31, 2000
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT.(000) (000)
-----------------------------------------------------------------------------
North Hudson, Sewer Authority RB
5.000%, 03/30/01 $ 500 $ 500
-----------------------------------------------------------------------------
TOTAL NEW JERSEY 656
-----------------------------------------------------------------------------
NEW YORK - 0.1%
Greystone, Municipal Lease
Certificate Trust Authority COP,
Ser A (A) (B) (C)
4.500%, 11/08/00 68 68
-----------------------------------------------------------------------------
TOTAL NEW YORK 68
-----------------------------------------------------------------------------
OHIO - 10.7%
American Municipal Power Authority,
City of Bryan BAN,
Ser B
5.000%, 08/23/01 1,500 1,503
Athens County, Port Housing Authority RB,
University Housing for Ohio Inc.
Project (A) (B) (C)
4.450%, 11/08/00 2,000 2,000
Bellevue, Hospital Facilities RB, The Bellevue
Hospital Project (A) (B) (C)
4.750%, 03/01/01 750 750
Clermont County, Economic
Development Authority RB,
John Q. Hammons Project (A) (B) (C)
4.600%, 11/01/00 770 770
Clyde BAN
5.125%, 06/21/01 680 681
Cuyahoga County, Health Care
Facilities Authority RB,
Cleveland Neighborhood Project,
Ser A (A) (B) (C)
5.050%, 12/01/00 490 490
Franklin County, Convention Facilities
Authority RB,
MBIA Pre-Refunded @ 102 (D)
7.000%, 12/01/00 500 511
Greystone, Municipal Lease Certificate
Trust Authority COP,
Ser A (A) (B) (C)
4.500%, 11/08/00 34 34
McDonald Tax-Exempt Mortgage Trust (A) (B) (C)
4.750%, 06/15/01 632 632
Toledo Lucas County, Port
Facilities Authority RB,
Toledo Museum of Art Project (A) (B) (C)
4.350%, 11/08/00 1,200 1,200
-----------------------------------------------------------------------------
TOTAL OHIO 8,571
-----------------------------------------------------------------------------
OKLAHOMA - 4.1%
Greystone, Municipal Lease
Certificate Trust Authority COP,
Ser A (A) (B) (C)
4.500%, 11/08/00 2 2
Rural Enterprises RB, Governmental
Financing Program,
Ser A (A) (B)
4.450%, 11/08/00 1,300 1,300
OCTOBER 31, 2000 45
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT.(000) (000)
-----------------------------------------------------------------------------
Tulsa, Industrial Development Authority RB,
Tulsa County Housing Project (A) (B)
4.480%, 11/08/00 $2,000 $ 2,000
-----------------------------------------------------------------------------
TOTAL OKLAHOMA 3,302
-----------------------------------------------------------------------------
OREGON - 5.7%
Clackamas County, Hospital
Facilities RB, Senior Living
Facility-Mary Woods Project,
Ser C (A) (B) (C)
4.500%, 11/08/00 1,600 1,600
Medford, Hospital Facility Authority
RB, Rogue Valley
Manor Continued Care Retirement
Project (A) (B) (C)
4.500%, 11/08/00 3,000 3,000
-----------------------------------------------------------------------------
TOTAL OREGON 4,600
-----------------------------------------------------------------------------
PENNSYLVANIA - 5.8%
Clarion County, Industrial
Development Authority,
Meritcare Project, Ser A (A) (B) (C)
4.400%, 11/08/00 200 200
Greystone, Municipal Lease Certificate
Trust Authority COP,
Ser A (A) (B) (C)
4.500%, 11/08/00 65 65
Harbor Creek, School District Authority GO
4.750%, 07/01/01 1,000 1,001
McDonald Tax-Exempt Mortgage Trust (A) (B) (C)
4.750%, 06/15/01 135 135
Northampton County, Higher Education
Authority RB,
Lehigh University Project (A) (B)
4.350%, 11/08/00 450 450
Pennsylvania State, Higher
Educational Facilities
Authority RB, Independent
Colleges Association,
University of Scranton Project,
Ser-E3 (A) (B) (C)
4.400%, 11/08/00 1,500 1,500
Philadelphia, Hospital & Higher
Education Facilities
Authority RB, Temple East Project,
Ser B (A) (B) (C)
4.550%, 11/08/00 400 400
Washington County, Industrial
Development Authority RB,
Wetterau Finance Project (A) (B) (C)
4.400%, 11/08/00 900 900
-----------------------------------------------------------------------------
TOTAL PENNSYLVANIA 4,651
-----------------------------------------------------------------------------
RHODE ISLAND - 1.9%
Rhode Island State, Health &
Educational Building
Authority RB, Moses Brown
School Project, MBIA (A) (B)
4.600%, 11/01/00 1,500 1,500
-----------------------------------------------------------------------------
TOTAL RHODE ISLAND 1,500
-----------------------------------------------------------------------------
46 OCTOBER 31, 2000
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT.(000) (000)
----------------------------------------------------------------------------
SOUTH CAROLINA - 0.2%
Greystone, Municipal Lease Certificate
Trust Authority COP,
Ser A (A) (B) (C)
4.500%, 11/08/00 $ 51 $ 51
South Carolina State, Public Services
Authority RB, Ser B,
AMBAC Pre-Refunded @ 102 (D)
7.100%, 07/01/01 100 103
-----------------------------------------------------------------------------
TOTAL SOUTH CAROLINA 154
-----------------------------------------------------------------------------
TENNESSEE - 1.8%
Greystone, Tax Exempt Certificate
Trust Authority RB,
Senior Certificate of Beneficial
Ownership Project,
Ser 1998-1 (A) (B) (C)
4.500%, 11/08/00 614 614
Memphis GO, Ser A (A) (B)
4.400%, 11/08/00 100 100
Memphis, Health Educational &
Housing Authority RB,
Non-Profit Multi-Family Program (A) (B)
4.480%, 11/08/00 700 700
-----------------------------------------------------------------------------
TOTAL TENNESSEE 1,414
-----------------------------------------------------------------------------
TEXAS - 4.7%
Big Spring, Independent School District GO
8.250%, 08/15/01 295 304
Bryan, Independent School District
Public Facilities
Authority RB, FSA
4.300%, 02/15/01 1,045 1,045
Corpus Christi, Industrial
Development Authority RB,
Texas Air Project (A) (B) (C)
4.800%, 02/01/01 300 300
Greystone, Municipal Lease Certificate
Trust Authority COP,
Ser A (A) (B) (C)
4.500%, 11/08/00 59 59
Longview, Water & Sewer RB, MBIA
7.000%, 03/01/01 150 151
Waxahachie, Industrial Development Authority,
Dart Container Project (A) (B)
4.550%, 11/08/00 1,950 1,950
-----------------------------------------------------------------------------
TOTAL TEXAS 3,809
-----------------------------------------------------------------------------
VERMONT - 0.2%
Vermont State, Educational &
Health Buildings Financing
Authoriy RB, Capital Asset
Financing Program, Ser 1 (A) (B) (C)
4.450%, 11/08/00 200 200
-----------------------------------------------------------------------------
TOTAL VERMONT 200
-----------------------------------------------------------------------------
OCTOBER 31, 2000 47
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS
FACE VALUE
DESCRIPTION AMT.(000) (000)
-----------------------------------------------------------------------------
VIRGINIA - 4.5%
Greystone, Municipal Lease
Certificate Trust Authority COP,
Ser A (A) (B) (C)
4.500%, 11/08/00 $ 4 $ 4
Greystone, Tax Exempt Certificate
Trust Authority RB,
Senior Certificate of Beneficial
Ownership Project,
Ser 1998-1 (A) (B) (C)
4.500%, 11/08/00 289 289
Lynchburg, Industrial Development
Hospital Authority RB,
VHA Mid Atlantic Project,
Ser F, AMBAC (A) (B)
4.400%, 11/08/00 1,000 1,000
Roanoke, Industrial Development
Hospital Authority RB,
Ser A (A) (B)
4.600%, 11/01/00 2,300 2,300
-----------------------------------------------------------------------------
TOTAL VIRGINIA 3,593
-----------------------------------------------------------------------------
WASHINGTON - 3.1%
Washington State, Housing Finance
Commission RB,
JATC Educational Development
Trust Project (A) (B) (C)
4.650%, 11/01/00 2,400 2,400
Washington State, Housing
Finance Commision RB,
YMCA Columbia/Willamette
Project (A) (B) (C)
4.450%, 11/08/00 100 100
-----------------------------------------------------------------------------
TOTAL WASHINGTON 2,500
-----------------------------------------------------------------------------
WEST VIRGINIA - 1.5%
Putnam County, Industrial
Development Authority RB,
FMC Corporation Project (A) (B) (C)
4.450%, 11/08/00 1,200 1,200
-----------------------------------------------------------------------------
TOTAL WEST VIRGINIA 1,200
-----------------------------------------------------------------------------
WISCONSIN - 5.4%
Fox Point & Bayside, Joint
School District, TRAN
4.750%, 10/12/01 785 786
Wisconsin State, Health & Educational
Facilities Authority RB,
Milwaukee Protestant Project,
Ser A (A) (B) (C)
4.400%, 11/08/00 900 900
Wisconsin State, Johnson Creek
School District TRAN
4.750%, 08/23/01 1,250 1,251
Wisconsin State, Kewaskum
School District TRAN
4.700%, 09/19/01 625 625
Wisconsin State, South Milwaukee
School District TRAN
4.800%, 07/30/01 775 776
-----------------------------------------------------------------------------
TOTAL WISCONSIN 4,338
-----------------------------------------------------------------------------
WYOMING - 0.5%
Cheyenne County, Economic
Development Authority RB,
Holiday Inn Project (A) (B) (C)
4.600%, 04/01/01 365 365
-----------------------------------------------------------------------------
TOTAL WYOMING 365
-----------------------------------------------------------------------------
48 OCTOBER 31, 2000
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS
VALUE
DESCRIPTION (000)
-----------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(COST $80,211) $80,211
-----------------------------------------------------------------------------
TOTAL INVESTMENTS - 100.0%
(COST $80,211) 80,211
OTHER ASSETS AND LIABILITIES, NET - 0.0% 4
-----------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Class (unlimited authorization --
no par value) based on 5,624,402 outstanding shares of
beneficial interest 5,624
Portfolio Capital of Investment Service Shares Class (unlimited
authorization-- no par value) based on 72,548,772 outstanding
shares of beneficial interest 72,549
Portfolio Capital of Sweep Class Shares (unlimited authorization --
no par value) based on 2,057,928 outstanding shares of
beneficial interest 2,058
Distributions in excess of net investment income (8)
Accumulated net realized loss on investments (8)
-----------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $80,215
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INSTITUTIONAL CLASS $1.00
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INVESTMENT SERVICE SHARES CLASS $1.00
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
SWEEP CLASS SHARES $1.00
-----------------------------------------------------------------------------
(A) Floating Rate Security -- the rate reflected on the Statement of Net
Assets is the rate in effect on October 31, 2000.
(B) Put and Demand Feature -- the date reported on the Statement of Net Assets
is the earlier of the maturity date or the put date.
(C) Securities are held in conjunction with a letter of credit from a major
bank or financial instution.
(D) Pre-Refunded Security -- the maturity date shown on the Statement of Net
Assets is the Pre-Refunded date.
AMBAC -- American Bond Municipal Assurance Company
BAN -- Bond Anticipation Note
COP -- Certificate of Participation
FSA -- Financial Security Assistance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
RB -- Revenue Bond
Ser -- Series
TAW -- Tax Anticipation Warrant
TRAN -- Tax and Revenue Anticipation Note
VHA -- Veterans Hospital Administration
The accompanying notes are an integral part of the financial statements.
OCTOBER 31, 2000 49
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS (000)
For the year ended October 31, 2000
EXPEDITION EXPEDITION
EQUITY EQUITY INCOME
FUND FUND(1)
----------- --------------
INVESTMENT INCOME:
<S> <C> <C>
Dividends $ 3,190 $ 473
Interest 318 52
------- -------
Total investment income 3,508 525
------- -------
EXPENSES:
Investment Advisory fees 3,190 177
Waiver of Investment Advisory fees -- --
Administrator fees 851 49
Waiver of Administrator fees -- --
Transfer Agent fees 203 29
Custodian fees 85 5
Directors' fees -- 1
Registration fees (64) 13
Professional fees 98 9
Printing fees 69 6
Shareholder Servicing fees--
Investment Service Shares -- --
Sweep Class Shares -- --
Distribution fees--
Investment Shares - Class A 18 --
Investment Shares - Class B 132 2
Amortization of organization costs 5 --
Other fees 23 1
------- -------
Net expenses 4,610 292
------- -------
Investment income (loss)-- net (1,102) 233
------- -------
Net realized gain (loss) on investments 58,586 1,672
Net change in unrealized appreciation
of investments 25,051 959
------- -------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS 83,637 2,631
------- -------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $82,535 $ 2,864
======= =======
<FN>
(1) Commenced operations on March 3, 2000.
</FN>
</TABLE>
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
50 OCTOBER 31, 2000
<PAGE>
<TABLE>
<CAPTION>
EXPEDITION EXPEDITION EXPEDITION
INVESTMENT TAX-FREE INVESTMENT EXPEDITION TAX-FREE
GRADE BOND GRADE BOND MONEY MARKET MONEY MARKET
FUND FUND(1) FUND FUND
---------- ----------------- ------------- --------------
<S> <C> <C> <C> <C>
$ -- $ -- $ -- $ --
8,255 3,003 24,401 3,329
------- ------- -------- -------
8,255 3,003 24,401 3,329
------- ------- -------- -------
740 288 1,557 322
(185) (58) (836) (171)
260 49 778 161
-- -- (194) (40)
82 26 180 58
26 12 78 16
-- 3 5 3
12 21 25 (37)
10 15 37 16
25 16 27 12
-- -- 611 164
-- -- 11 1
16 1 -- --
2 -- -- --
-- -- -- 4
3 3 17 2
------- ------- -------- -------
991 376 2,296 511
------- ------- -------- -------
7,264 2,627 22,105 2,818
------- ------- -------- -------
(2,234) (150) -- (1)
2,150 3,340 -- --
------- ------- -------- -------
(84) 3,190 -- (1)
------- ------- -------- -------
$7,180 $ 5,817 $ 22,105 $ 2,817
======= ======= ======== =======
</TABLE>
OCTOBER 31, 2000 51
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
For the periods ended October 31,
EXPEDITION
EQUITY
FUND
--------------------
Year Year
Ended Ended
10/31/00 10/31/99
----------- --------
OPERATIONS:
Investment income (loss)-- net $ (1,102) $ 29
Net realized gain (loss) on investments 58,586 41,739
Net change in unrealized appreciation
(depreciation) of investments 25,051 45,700
-------- --------
Net increase (decrease) in net assets resulting
from operations 82,535 87,468
-------- --------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income -- net:
Institutional Shares -- (100)
Investment Shares - Class A -- --
Investment Shares - Class B -- --
Net realized gain on investments:
Institutional Shares (40,734) (15,469)
Investment Shares - Class A (558) (161)
Investment Shares - Class B (966) (2)
-------- --------
Total distributions (42,258) (15,732)
-------- --------
CAPITAL SHARE TRANSACTIONS (1):
Institutional Shares:
Proceeds from sales 55,003 51,570
Proceeds in Connection with the Acquisition
of Common Trust Fund Assets -- --
Shares Issued in Lieu of Cash Distributions 40,656 15,498
Payments for redemptions (75,519) (57,381)
-------- --------
Increase (decrease) in net assets from
Institutional Shares transactions 20,140 9,687
-------- --------
Investment Shares - Class A:
Proceeds from sales 6,552 3,389
Shares Issued in Lieu of Cash Distributions 541 153
Payments for redemptions (2,445) (1,433)
-------- --------
Increase (decrease) in net assets from
Investment Shares - Class A transactions 4,648 2,109
-------- --------
Investment Shares - Class B:
Proceeds from sales 12,404 7,712
Shares Issued in Lieu of Cash Distributions 960 2
Payments for redemptions (1,921) (239)
-------- --------
Increase (decrease) in net assets from
Investment Shares - Class B transactions 11,443 7,475
-------- --------
Total increase (decrease) in net assets from
capital share transactions 36,231 19,271
-------- --------
Total increase (decrease) in net assets 76,508 91,007
-------- --------
Net Assets at Beginning of period 376,088 285,081
-------- --------
Net Assets at End of period $452,596 $376,088
======== ========
(1) See note 4 in the notes to financial statements for additional information.
(2) Commenced operations on March 3, 2000.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
52 OCTOBER 31, 2000
<PAGE>
<TABLE>
<CAPTION>
EXPEDITION EXPEDITION TAX-FREE
QUITY INCOME INVESTMENT GRADE INVESTMENT GRADE
FUND(2) BOND FUND BOND FUND(2)
-------------- ------------------ -------------------
3/3/00 Year Year 3/3/00
to Ended Ended to
10/31/00 10/31/00 10/31/99 10/31/00
------------ --------- -------- ------------
OPERATIONS:
<S> <C> <C> <C> <C>
Investment income (loss)-- net $ 233 $ 7,264 $ 5,457 $ 2,627
Net realized gain (loss) on investments 1,672 (2,234) (89) (150)
Net change in unrealized appreciation
(depreciation) of investments 959 2,150 (5,544) 3,340
------- -------- -------- --------
Net increase (decrease) in net assets resulting
from operations 2,864 7,180 (176) 5,817
------- -------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income -- net:
Institutional Shares (215) (6,924) (5,030) (2,615)
Investment Shares - Class A (1) (331) (416) (12)
Investment Shares - Class B -- (8) (3) --
Net realized gain on investments:
Institutional Shares -- -- -- --
Investment Shares - Class A -- -- -- --
Investment Shares - Class B -- -- -- --
------- -------- -------- --------
Total distributions (216) (7,263) (5,449) (2,627)
------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS (1):
Institutional Shares:
Proceeds from sales 133 24,999 18,496 6,482
Proceeds in Connection with the Acquisition
of Common Trust Fund Assets 35,971 38,701 -- 93,207
Shares Issued in Lieu of Cash Distributions -- 4,456 3,048 1
Payments for redemptions (4,317) (30,589) (22,452) (18,137)
------- -------- -------- --------
Increase (decrease) in net assets from
Institutional Shares transactions 31,787 37,567 (908) 81,553
------- -------- -------- --------
Investment Shares - Class A:
Proceeds from sales 280 208 353 499
Shares Issued in Lieu of Cash Distributions 1 215 265 10
Payments for redemptions -- (2,498) (3,221) --
------ -------- -------- --------
Increase (decrease) in net assets from
Investment Shares - Class A transactions 281 (2,075) (2,603) 509
------- -------- -------- --------
Investment Shares - Class B:
Proceeds from sales 422 115 237 3
Shares Issued in Lieu of Cash Distributions -- 8 3 --
Payments for redemptions (5) (134) (21) --
------- -------- -------- --------
Increase (decrease) in net assets from
Investment Shares - Class B transactions 417 (11) 219 3
------- -------- -------- --------
Total increase (decrease) in net assets from
capital share transactions 32,485 35,481 (3,292) 82,065
------- -------- -------- --------
Total increase (decrease) in net assets 35,133 35,398 (8,917) 85,255
------- -------- -------- --------
Net Assets at Beginning of period -- 106,382 115,299 --
------- -------- -------- --------
Net Assets at End of period $35,133 $141,780 $106,382 $ 85,255
======= ======== ======== ========
</TABLE>
OCTOBER 31, 2000 53
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
For the periods ended October 31,
<TABLE>
<CAPTION>
EXPEDITION
EXPEDITION TAX-FREE
MONEY MARKET MONEY MARKET
FUND FUND
--------------------- -------------------
Year Year Year Year
Ended Ended Ended Ended
10/31/00 10/31/99 10/31/00 10/31/99
---------- --------- -------- ---------
OPERATIONS:
<S> <C> <C> <C> <C>
Investment income -- net $ 22,105 $ 13,895 $ 2,818 $ 2,064
Net realized loss on investments -- (2) (1) (7)
Net change in unrealized appreciation
(depreciation) of investments -- -- -- --
-------- -------- ------- --------
Net increase in net assets resulting
from operations 22,105 13,893 2,817 2,057
-------- -------- ------- --------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income -- net:
Institutional Shares (8,184) (5,844) (531) (466)
Investment Service Shares (13,732) (8,050) (2,287) (1,598)
Sweep Class Shares (189) -- (8) ---
-------- -------- ------- --------
Total distributions (22,105) (13,894) (2,826) (2,064)
-------- -------- ------- --------
CAPITAL SHARE TRANSACTIONS (1):
Institutional Shares:
Proceeds from sales 613,378 507,343 32,791 48,856
Shares Issued in Lieu of Cash
Distributions 367 284 -- --
Payments for redemptions (613,651) (479,528) (56,042) (19,981)
-------- -------- ------- --------
Increase (decrease) in net assets from
Institutional Shares transactions 94 28,099 (23,251) 28,875
-------- -------- ------- --------
Investment Service Shares:
Proceeds from sales 849,066 637,445 195,761 158,834
Shares Issued in Lieu of
Cash Distributions 1,541 1,324 28 14
Payments for redemptions (712,456) (595,247) (183,135) (163,495)
-------- -------- ------- --------
Increase (decrease) in net assets from
- Investment Service Shares
transactions 138,151 43,522 12,654 (4,647)
-------- -------- ------- --------
Sweep Class Shares:
Proceeds from sales 43,386 -- 2,518 ---
Shares Issued in Lieu of
Cash Distributions 182 -- 8 ---
Payments for redemptions (11,589) -- (468) ---
-------- -------- ------- --------
Increase in net assets from
Sweep Class Shares 31,979 -- 2,058 ---
-------- -------- ------- --------
Total increase (decrease) in
net assets from
capital share transactions 170,224 71,621 (8,539) 24,228
-------- -------- ------- --------
Total increase (decrease)
in net assets 170,224 71,620 (8,548) 24,221
-------- -------- ------- --------
Net Assets at Beginning of period 317,229 245,609 88,763 64,542
-------- -------- ------- --------
Net Assets at End of period $487,453 $317,229 $80,215 $ 88,763
======== ======== ======= ========
<FN>
(1) See note 4 in the notes to financial statements for additional information.
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.
54 OCTOBER 31, 2000
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK.
OCTOBER 31, 2000 55
<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 DISTRIBUTIONS 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> <C>
Institutional Shares
2000 $13.09 (0.02) 2.67 -- (1.49) $14.25
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
2000 $13.06 (0.03) 2.64 -- (1.49) $14.18
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
2000 $12.96 (0.08) 2.56 -- (1.49) $13.95
1999(3) 10.82 (0.04) 2.77 -- (0.59) 12.96
---------------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME FUND
---------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2000(4) $10.00 0.07 0.76 (0.06) -- $10.77
Investment Shares - Class A
2000(5) $ 9.78 0.04 1.00 (0.06) -- $10.76
Investment Shares - Class B
2000(6) $ 9.82 0.01 0.94 (0.02) -- $10.75
---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT GRADE BOND FUND
---------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2000 $ 9.65 0.53 0.07 (0.53) -- $ 9.72
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
2000 $ 9.64 0.51 0.07 (0.51) -- $ 9.71
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
2000 $ 9.64 0.44 0.08 (0.44) -- $ 9.72
1999(3) 10.06 0.38 (0.17) (0.63) -- 9.64
<FN>
+ Returns are for the period indicated and have not been annualized.
(1) Commenced operations on June 13, 1997. All ratios for the period have been annualized.
(2) Commenced operations on November 24, 1997. All ratios for the period have been annualized.
(3) Commenced operations on November 16, 1998. All ratios for the period have been annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
56 OCTOBER 31, 2000
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF NET RATIO OF NET INVESTMENT
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)
--------- ------------ ------------ -------------------- ----------------------
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
22.01% $422,148 1.05% (0.22)% 1.05%
30.87% 363,694 1.05% 0.04% 1.05%
19.18% 283,170 1.08% 0.38% 1.11%
2.96% 237,567 1.09% 0.53% 1.09%
21.73% $ 10,090 1.30% (0.49)% 1.30%
30.16% 4,688 1.30% (0.21)% 1.30%
16.16% 1,911 1.29% (0.14)% 1.37%
20.80% $ 20,358 2.05% (1.24)% 2.05%
26.31% 7,706 2.05% (0.95)% 2.05%
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
8.36% $ 34,420 1.25% 1.00% 1.25%
10.60% $ 286 1.50% 0.84% 1.50%
9.71% $ 427 2.25% (0.15)% 2.25%
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
6.49% $136,354 0.75% 5.61% 0.89%
(0.06)% 98,889 0.90% 5.00% 1.15%
8.43% 104,953 0.94% 5.11% 1.13%
3.49% 101,224 1.10% 5.05% 1.11%
6.22% $ 5,222 1.00% 5.32% 1.14%
(0.41)% 7,279 1.15% 4.75% 1.40%
8.25% 10,346 1.10% 4.95% 1.25%
6.41% 23,630 1.13% 5.46% 1.56%
4.44% 44,552 1.08% 5.90% 1.58%
10.94% 63,521 1.04% 6.51% 1.51%
5.54% $ 204 1.75% 4.58% 1.89%
2.10% 214 1.90% 4.07% 2.15%
</TABLE>
RATIO OF NET INVESTMENT
INCOME (LOSS) TO AVERAGE NET
ASSETS (EXCLUDING WAIVERS PORTFOLIO
AND REIMBURSEMENTS) TURNOVER RATE
---------------------------- ---------------
(0.22)% 64.54%
0.04% 90.76%
0.35% 54.19%
0.53% 64.68%
(0.49)% 64.54%
(0.21)% 90.76%
(0.22)% 54.19%
(1.24)% 64.54%
(0.95)% 90.76%
---------------------------------------------------
---------------------------------------------------
1.00% 73.31%
0.84% 73.31%
(0.15)% 73.31%
---------------------------------------------------
---------------------------------------------------
5.47% 77.09%
4.75% 39.57%
4.92% 32.93%
5.04% 69.09%
5.18% 77.09%
4.50% 39.57%
4.80% 32.93%
5.03% 69.09%
5.40% 77.00%
6.04% 79.00%
4.44% 77.09%
3.82% 39.57%
(4) Commenced operations on March 3, 2000. All ratios for the period have been
annualized.
(5) Commenced operations on March 13, 2000. All ratios for the period have
been annualized.
(6) Commenced operations on March 16, 2000. All ratios for the period have been
annualized.
Amounts designated as "--" are either $0 or have been rounded to $0.
OCTOBER 31, 2000 57
<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 DISTRIBUTIONS VALUE,
BEGINNING INVESTMENT GAINS OR (LOSSES) INVESTMENT FROM END OF
OF PERIOD INCOME ON INVESTMENTS INCOME CAPITAL GAINS PERIOD
----------- ----------- ---------------- -------------- -------------- ---------
------------------------------------------------------------------------------------------------------------------------------
TAX-FREE INVESTMENT GRADE BOND FUND
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Institutional Shares
2000(1) $10.00 0.31 0.37 (0.31) -- $10.37
Investment Shares - Class A
2000(2) $10.05 0.28 0.31 (0.28) -- $10.36
Investment Shares - Class B
2000(3) $10.18 0.13 0.19 (0.13) -- $10.37
------------------------------------------------------------------------------------------------------------------------------
MONEY MARKET FUND
------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2000 $ 1.00 0.06 -- (0.06) -- $ 1.00
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
2000 $ 1.00 0.06 -- (0.06) -- $ 1.00
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
Sweep Class Shares
2000(6) $ 1.00 0.01 -- (0.01) -- $ 1.00
-------------------------------------------------------------------------------------------------------------------------------
TAX-FREE MONEY MARKET FUND
-------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2000 $ 1.00 0.04 -- (0.04) -- $ 1.00
1999(7) 1.00 0.02 -- (0.02) -- 1.00
Investment Service Shares
2000 $ 1.00 0.03 -- (0.03) -- $ 1.00
1999 1.00 0.03 -- (0.03) -- 1.00
1998(8) 1.00 0.01 -- (0.01) -- 1.00
Sweep Class Shares
2000(6) $ 1.00 0.01 -- (0.01) -- $ 1.00
<FN>
+ Returns are for the period indicated and have not been annualized.
(1) Commenced operations on March 3, 2000. All ratios for the period have been annualized.
(2) Commenced operations on March 13, 2000. All ratios for the period have been annualized.
(3) Commenced operations on June 23, 2000. All ratios for the period have been annualized.
(4) Commenced operations on June 9, 1997. All ratios for the period have been annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
58 OCTOBER 31, 2000
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
RATIO OF RATIO OF NET RATIO OF EXPENSES RATIO OF NET INVESTMENT
NET ASSETS EXPENSES INVESTMENT TO AVERAGE NET ASSETS INCOME (LOSS) TO AVERAGE NET
TOTAL END OF TO AVERAGE INCOME (LOSS) TO (EXCLUDING WAIVERS ASSETS (EXCLUDING WAIVERS PORTFOLIO
RETURN+ PERIOD (000) NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) TURNOVER RATE
--------- ------------ ----------- -------------------- ------------------- ------------------------- --------------
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
6.84% $ 84,729 0.65% 4.58% 0.75% 4.48% 42.74%
5.95% $ 523 0.90% 4.36% 1.00% 4.26% 42.74%
3.16% $ 3 1.65% 3.56% 1.75% 3.46% 42.74%
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
5.96% $130,891 0.43% 5.79% 0.69% 5.53% n/a
4.83% 130,798 0.43% 4.73% 0.77% 4.39% n/a
5.33% 102,699 0.43% 5.18% 0.66% 4.95% n/a
5.26% 48,006 0.43% 5.22% 0.70% 4.95% n/a
5.69% $324,583 0.68% 5.62% 0.94% 5.36% n/a
4.56% 186,431 0.68% 4.47% 1.02% 4.13% n/a
5.07% 142,910 0.68% 4.95% 0.91% 4.73% n/a
4.97% 147,651 0.73% 4.84% 0.85% 4.72% n/a
4.95% 136,666 0.71% 4.85% 0.71% 4.85% n/a
5.51% 141,434 0.56% 5.38% 0.66% 5.28% n/a
1.53% $ 31,979 0.80% 5.95% 1.06% 5.69% n/a
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
3.80% $ 5,622 0.43% 3.61% 0.69% 3.35% n/a
1.69% 28,874 0.43% 3.06% 0.89% 2.60% n/a
3.54% $ 72,535 0.68% 3.48% 0.94% 3.22% n/a
2.77% 59,889 0.68% 2.73% 0.95% 2.46% n/a
1.33% 64,542 0.68% 2.95% 0.78% 2.85% n/a
1.00% $ 2,058 0.80% 3.81% 1.06% 3.55% n/a
<FN>
(5) During 1997, the Starburst Money Market Trust Shares were renamed the Expedition Money Market Investment
Service Shares.
(6) Commenced operations on August 1, 2000. All ratios for the period have been annualized.
(7) Commenced operations on April 14, 1999. All ratios for the period have been annualized.
(8) Commenced operations on May 20, 1998. All ratios for the period have been annualized.
</FN>
</TABLE>
Amounts designated as "--" are either $0 or have been rounded to $0.
OCTOBER 31, 2000 59
<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, 2000: the Expedition
Equity Fund (the "Equity Fund"), the Expedition Equity Income Fund (the "Equity
Income Fund"), the Expedition Investment Grade Bond Fund (formerly Expedition
Bond Fund) (the "Investment Grade Bond Fund"), the Expedition Tax-Free
Investment Grade Bond Fund (the "Tax-Free Investment Grade 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"). The Funds are registered to offer three classes of shares. The Equity,
Equity Income, Investment Grade Bond, and Tax-Free Investment Grade 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, Investment
Service Shares and Sweep Class 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, Equity Income, Investment Grade
Bond, and Tax-Free Investment Grade 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").
60 OCTOBER 31, 2000
<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 Investment Grade Bond Fund, the Tax-Free Investment Grade Bond
Fund, the Money Market Fund and the Tax-Free Money Market Fund are declared
daily and paid monthly. The Equity Fund and the Equity Income Fund declare and
pay dividends from net investment income quarterly. Any net realized capital
gains will be distributed at least annually for all Funds. Dividends from net
investment income and distributions from net realized capital gains are
determined in accordance with U.S. Federal income tax regulations. Certain
book/tax differences are either temporary or permanent in nature. To the extent
these differences are permanent, they are charged or credited to paid-in-capital
or accumulated net realized gain, as appropriate, in the period that the
differences arise. Accordingly, the following permanent differences have been
reclassified to/from the following accounts during the fiscal year ended October
31, 2000 (000):
UNDISTRIBUTED ACCUMULATED
NET INVESTMENT INCOME REALIZED GAIN PAID-IN-CAPITAL
--------------------- ------------ ------------
Expedition Equity Fund $1,102 $(1,147) $45
Expedition Money Market Fund $ 2 $ (2) --
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, 2000 61
<PAGE>
Notes to Financial Statements
At October 31, 2000, the following Funds, for Federal
tax purposes, had capital loss carry-forwards 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
Funds of any liability for Federal tax. Persuant to the Code, such capital loss
carryforwards will expire as follows:
<TABLE>
<CAPTION>
TAX-FREE TAX-FREE
INVESTMENT INVESTMENT MONEY MONEY
EXPIRATION GRADE BOND GRADE BOND MARKET MARKET
YEAR FUND FUND FUND FUND
------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
2002 $2,268,525 $ -- $ -- $ --
2003 558,610 -- -- --
2004 1,621 -- -- --
2005 738,192 -- -- --
2006 -- -- -- 171
2007 63,361 -- 1,378 7,327
2008 2,260,968 149,607 385 637
---------- -------- ------ ------
$5,891,277 $149,607 $1,763 $8,135
========== ======== ====== ======
</TABLE>
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
Equity and Equity Income Funds', 0.50% of each of the Investment Grade Bond and
Tax-Free Investment Grade Bond 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.
62 OCTOBER 31, 2000
<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, Equity Income, Investment Grade Bond, and Tax-Free Investment Grade 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 and Sweep
Class 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 such Shares of the Funds.
ADMINISTRATIVE SERVICING FEES -- To the extent that investors buy Sweep Class
Shares through Compass Bank or any of its affiliates providing sub-accounting,
sub-transfer agency services or other administrative services, including Compass
Brokerage, Inc., those entities may receive administrative servicing fees,
payable from the Funds' assets, of up to .12% of each Fund's average daily net
assets attributable to Sweep Class 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.
OCTOBER 31, 2000 63
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(4) CAPITAL SHARE TRANSACTIONS (000)
<TABLE>
<CAPTION>
EXPEDITION EXPEDITION
EQUITY EQUITY INCOME
FUND FUND
-------------------------- -----------------
Year Ended Year Ended 3/3/00 to
10/31/00 10/31/99 10/31/00
----------- ------------ ----------------
Institutional Shares:
<S> <C> <C> <C>
Shares issued 4,122 4,230 13
Shares issued in connection with the
Aquisition of Commom Trust Fund Assets -- -- 3,595
Shares issued in lieu of cash distributions 3,297 1,439 --
Shares redeemed (5,593) (4,704) (411)
-------- ------ ------
Total Institutional Shares transactions 1,826 965 3,197
-------- ------ ------
Investment Shares - Class A and
Investment Service Shares (respectively):
Shares issued 487 282 27
Shares issued in lieu of cash distributions 44 14 --
Shares redeemed (179) (118) --
-------- ------ ------
Total Investment Shares - Class A and
Investment Service Shares
(respectively) transactions 352 178 27
-------- ------ ------
Investment Shares - Class B:
Shares issued 928 614 41
Shares issued in lieu of cash distributions 79 -- --
Shares redeemed (143) (19) (1)
-------- ------ ------
Total Investment Shares - Class B transactions 864 595 40
-------- ------ ------
Sweep Class Shares:
Shares issued -- -- --
Shares issued in lieu of cash distributions -- -- --
Shares redeemed -- -- --
-------- ------ ------
Total Investment Shares - Sweep Class transactions -- -- --
-------- ------ ------
NET INCREASE (DECREASE)
FROM SHARE TRANSACTIONS 3,042 1,738 3,264
======== ====== ======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
(4) CAPITAL SHARE TRANSACTIONS (000)
EXPEDITION EXPEDITION TAX-FREE EXPEDITION EXPEDITION
INVESTMENT GRADE INVESTMENT GRADE MONEY MARKET TAX-FREE MONEY
BOND FUND BOND FUND FUND MARKET FUND
------------------------ ------------------ -------------------------------- --------------------------
Year Ended Year Ended 3/3/00 to Year Ended Year Ended Year Ended Year Ended
10/31/00 10/31/99 10/31/00 10/31/00 10/31/99 10/31/00 10/31/99
---------- ---------- -------------- -------------- ------------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C>
2,438 1,876 635 613,378 507,343 32,791 48,856
4,082 -- 9,321 -- -- -- --
465 310 -- 367 284 -- --
(3,208) (2,271) (1,783) (613,651) (479,528) (56,042) (19,981)
------ ------ ------ -------- --------- -------- --------
3,777 (85) 8,173 94 28,099 (23,251) 28,875
------ ------ ------ -------- --------- -------- --------
22 35 49 849,066 637,445 195,761 158,834
23 27 1 1,541 1,324 28 14
(262) (327) -- (712,456) (595,247) (183,135) (163,495)
------ ------ ------ -------- --------- -------- --------
(217) (265) 50 138,151 43,522 12,654 (4,647)
------ ------ ------ -------- --------- -------- --------
12 24 -- -- -- -- --
1 -- -- -- -- -- --
(14) (2) -- -- -- -- --
------ ------ ------ -------- --------- -------- --------
(1) 22 -- -- -- -- --
------ ------ ------ -------- --------- -------- --------
-- -- -- 43,386 -- 2,518 --
-- -- -- 182 -- 8 --
-- -- -- (11,589) -- (468) --
------ ------ ------ -------- --------- -------- --------
-- -- -- 31,979 -- 2,058 --
------ ------ ------ -------- --------- -------- --------
3,559 (328) 8,223 170,224 71,621 (8,539) 24,228
====== ====== ====== ======== ========= ======== ========
</TABLE>
OCTOBER 31, 2000 65
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended October 31, 2000, were as follows (000):
<TABLE>
<CAPTION>
TAX-FREE
EQUITY INVESTMENT INVESTMENT
EQUITY INCOME GRADE BOND GRADE BOND
FUND FUND FUND FUND
-------- -------- ------------ ------------
<S> <C> <C> <C> <C>
Purchases
Government......... -- -- $ 93,674 --
Other.............. $271,793 $55,103 $ 34,540 $123,016
Sales
Government......... -- -- $ 57,208 --
Other.............. $279,210 $25,553 $ 33,360 $35,592
</TABLE>
At October 31, 2000, the total cost of securities for Federal income tax
purposes was $345,289,615 for the Equity Fund and $31,547,080 for the Equity
Income Fund. The total cost and the net realized gains or losses on securities
sold for the Investment Grade Bond Fund and the Tax-Free Investment Grade Bond
Fund 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,
2000, are as follows (000):
<TABLE>
<CAPTION>
TAX-FREE
EQUITY INVESTMENT INVESTMENT
EQUITY INCOME GRADE BOND GRADE BOND
FUND FUND FUND FUND
-------- -------- ------------ -----------
Aggregate gross unrealized
<S> <C> <C> <C> <C>
appreciation....... $123,411 $ 6,000 $ 2,058 $ 1,623
Aggregate gross unrealized
depreciation....... (13,881) (2,413) (941) (309)
-------- ------- ------- -------
Net unrealized
appreciation
(depreciation)..... $109,530 $ 3,587 $ 1,117 $ 1,314
======== ======= ======= =======
</TABLE>
(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
66 OCTOBER 31, 2000
<PAGE>
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.
(7) COMMON TRUST FUND CONVERSIONS
On March 3, 2000, certain Common Trust Funds of Compass Bank and certain of its
affiliates were converted into the Expedition Funds. The Funds involved in the
conversion are as follows:
COMMON TRUST FUND EXPEDITION FUND
------------------ ----------------
Equity Income Trust Equity Income
Investment Grade Tax-Free Bond Tax-Free Investment Grade Bond
Long Term Investment Grade Tax-Free Bond Tax-Free Investment Grade Bond
Tax-Free Bond Tax-Free Investment Grade Bond
Investment Grade Bond Trust Investment Grade Bond
Quality Grade Bond Trust Investment Grade Bond
The net assets, which consisted of securities and related receivables less
liabilities, were converted on a tax-free basis. The net assets of each fund
(including net unrealized Appreciation (Depreciation) immediately before the
conversion were as follows (000):
UNREALIZED
APPRECIATION NET
COMMON TRUST FUND (DEPRECIATION) ASSETS
------------------ ------------ ------
Equity Income Trust 2,653 35,971
Investment Grade Tax-Free Bond (1,119) 54,740
Long Term Investment Grade Tax-Free Bond (245) 12,391
Tax-Free Bond (662) 26,076
Investment Grade Bond Trust (518) 12,589
Quality Grade Bond Trust (1,151) 26,112
The value and number of shares issued in exchange for each Common Trust Fund's
assets and shares outstanding in the tax-free conversions are included in the
capital share transactions of the Institutional Class in the Statement of
Changes in Net Assets for each respective fund.
OCTOBER 31, 2000 67
<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, Equity Income Fund, Investment Grade
Bond Fund, Tax-Free Investment Grade Bond Fund, Money Market Fund, and Tax-Free
Money Market Fund as of October 31, 2000, and the related statements of
operations, statements of changes in net assets and financial highlights for the
periods presented. These financial statements are the responsibility of the
Fund's 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 auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and 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, 2000 by correspondence with the custodians
and brokers, and where replies were not received from brokers, 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, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Funds as of October 31, 2000, the results of their operations, the changes in
their net assets, and the financial highlights for the respective stated
periods, in conformity with accounting principles generally accepted in the
United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
December 15, 2000
68 OCTOBER 31, 2000
<PAGE>
NOTICE TO SHAREHOLDERS
For the year ended October 31, 2000 (Unaudited)
For shareholders that do not have a October 31, 2000 tax year end, this notice
is for informational purposes only. For shareholders with a October 31, 2000,
please consult your tax advisor as to the pertinence of this notice. For this
fiscal year ended October 31, 2000, each portfolio is designating the following
items with regard to distributions paid during the year.
<TABLE>
<CAPTION>
Long Term
(20% Rate) Ordinary
Capital Gain Income Tax Exempt Total Qualifying
Portfolio Distribution Distributions Interest Distributions Dividends(1)
-------- ------------ ------------- ---------- ------------- -----------
Expedition Equity
<S> <C> <C> <C> <C> <C>
Fund 100.00% 0.00% 0.00% 100.00% 0.00%
Expedition Equity
Income Fund 0.00% 100.00% 0.00% 100.00% 0.00%
Expedition
Investment Grade
Bond Fund 0.00% 100.00% 0.00% 100.00% 0.00%
Expedition Tax-Free
Investment Grade
Bond 0.00% 0.02% 99.98% 100.00% 0.00%
Expedition Money
Market Fund 0.00% 100.00% 0.00% 100.00% 0.00%
Expedition Tax-Free
Money Market
Fund 0.00% 0.00% 100.00% 100.00% 0.00%
<FN>
(1) Qualifying dividends represent dividends which qualify for the corporate dividends received deduction and is reflected as
a percentage of "Ordinary Income Distributions."
</FN>
</TABLE>
OCTOBER 31, 2000 69
<PAGE>
NOTES
<PAGE>
NOTES
<PAGE>
NOTES
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-011-05
