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<P ALIGN="CENTER"><B><FONT COLOR="#004e61">The Sheffield Funds, Inc.</FONT></B>
<HR color="#005737" noshade size="1">
<p ALIGN="CENTER"> </p>
<P ALIGN="CENTER" style="margin-top: 0"><B> <U>Annual Report</U></B>
<P ALIGN="CENTER" style="margin-top: 0"> October 31, 1999
<P ALIGN="CENTER">
<P ALIGN="CENTER"><B><FONT COLOR="#004e61"> Sheffield Total Return Fund</FONT>
<P ALIGN="CENTER">
<P ALIGN="CENTER"><FONT COLOR="#005737"> Sheffield Intermediate Term Bond Fund</FONT></B>
<P ALIGN="CENTER">
<P ALIGN="CENTER">
<P ALIGN="CENTER">
<P ALIGN="CENTER">
<P ALIGN="CENTER">
<P ALIGN="CENTER" style="margin-top: 0"><I> Investment Advisor
<P ALIGN="CENTER" style="margin-top: 0"> Fund Administrator
<P ALIGN="CENTER" style="margin-top: 0"> <U>Shareholder Servicing Agent</U></I>
<P ALIGN="CENTER">
<P ALIGN="CENTER" style="margin-top: 0"> Sheffield Investment Management, Inc.
<P ALIGN="CENTER" style="margin-top: 0"> 900 Circle 75 Parkway, Suite 750
<P ALIGN="CENTER" style="margin-top: 0"> Atlanta, Georgia 30339-3082
<P ALIGN="CENTER" style="margin-top: 0"> (770) 953-1597
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<P>
<P>
<P><B><FONT COLOR="#004e61">The Sheffield Funds, Inc.</FONT></B>
<HR color="#005737">
<P ALIGN="JUSTIFY">October 31, 1999
<P>
<P><I>Dear Shareholder:</I>
<P ALIGN="JUSTIFY">
<P ALIGN="JUSTIFY">We are pleased to present the Funds' 10th fiscal year end report for your
review.
<P ALIGN="JUSTIFY">
<P ALIGN="JUSTIFY">Against a backdrop of rising interest rates throughout the year, the stock
market continued to ignore the negative implications arising from increasingly attractive bond
yields. The conclusion we draw from this stock market behavior is that investors are looking
past the recent interest rate increases, believing instead that rates will decline in the near
future. This complacency would presumably change if clear signs of inflation began to emerge.
In a financial markets paradox, the stock market indices are signaling that there is no
inflation threat, while the bond markets, in contrast, have reacted negatively to the
prospect of reemerging inflation and rising interest rates.
<P ALIGN="JUSTIFY">During the past twelve months, the stock market indices continued their
pattern of dramatic price appreciation. Once again the technology sector was the major
engine for growth, pulling the S&P 500 Index to new highs. Following a pattern which
has become familiar to investors during the last two years, large-cap, hi-tech companies
provided virtually all of the market's gains.
<div style="float: right; width: 289; height: 321">
<table BORDER="1" CELLSPACING="1" CELLPADDING="2" WIDTH="280"
font FACE="Times New Roman" COLOR="#000000">
<tr>
<td WIDTH="49%" HEIGHT="40" valign="bottom"><u><p ALIGN="CENTER"><font size="2">Stocks</font></u></td>
<td WIDTH="27%" HEIGHT="40"><p ALIGN="CENTER"><font size="2">% of S&P <u>500 Gain</u></font></td>
<td WIDTH="24%" HEIGHT="40" valign="bottom"><u><p ALIGN="CENTER"><font size="2">P/E</font></u></td>
</tr>
<tr>
<td WIDTH="49%" HEIGHT="20"><p ALIGN="LEFT"><font size="2">America Online<sup> 1, 2</sup></font></td>
<td WIDTH="27%" HEIGHT="20"><p ALIGN="CENTER"><font size="2">19.2%</font></td>
<td WIDTH="24%" HEIGHT="20"><p ALIGN="CENTER"><font size="2">231</font></td>
</tr>
<tr>
<td WIDTH="49%" HEIGHT="20"><p ALIGN="LEFT"><font size="2">Cisco<sup> 1</sup></font></td>
<td WIDTH="27%" HEIGHT="20"><p ALIGN="CENTER"><font size="2">14.5%</font></td>
<td WIDTH="24%" HEIGHT="20"><p ALIGN="CENTER"><font size="2">89</font></td>
</tr>
<tr>
<td WIDTH="49%" HEIGHT="20"><p ALIGN="LEFT"><font size="2">Microsoft<sup> 1</sup></font></td>
<td WIDTH="27%" HEIGHT="20"><p ALIGN="CENTER"><font size="2">12.8%</font></td>
<td WIDTH="24%" HEIGHT="20"><p ALIGN="CENTER"><font size="2">61</font></td>
</tr>
<tr>
<td WIDTH="49%" HEIGHT="20"><p ALIGN="LEFT"><font size="2">Sun Microsystems</font></td>
<td WIDTH="27%" HEIGHT="20"><p ALIGN="CENTER"><font size="2">9.8%</font></td>
<td WIDTH="24%" HEIGHT="20"><p ALIGN="CENTER"><font size="2">62</font></td>
</tr>
<tr>
<td WIDTH="49%" HEIGHT="20"><p ALIGN="LEFT"><font size="2">General Electric</font></td>
<td WIDTH="27%" HEIGHT="20"><p ALIGN="CENTER"><font size="2">8.8%</font></td>
<td WIDTH="24%" HEIGHT="20"><p ALIGN="CENTER"><font size="2">38</font></td>
</tr>
<tr>
<td WIDTH="49%" HEIGHT="20"><p ALIGN="LEFT"><font size="2">Nortel Networks</font></td>
<td WIDTH="27%" HEIGHT="20"><p ALIGN="CENTER"><font size="2">6.9%</font></td>
<td WIDTH="24%" HEIGHT="20"><p ALIGN="CENTER"><font size="2">42</font></td>
</tr>
<tr>
<td WIDTH="49%" HEIGHT="20"><p ALIGN="LEFT"><font size="2">Intel<sup> 1</sup></font></td>
<td WIDTH="27%" HEIGHT="20"><u><p ALIGN="CENTER"><font size="2">6.7%</font></u></td>
<td WIDTH="24%" HEIGHT="20"><u><p ALIGN="CENTER"><font size="2">33</font></u></td>
</tr>
<tr>
<td WIDTH="49%" HEIGHT="20"><p></p></td>
<td WIDTH="27%" HEIGHT="20"><p ALIGN="CENTER"><font size="2">78.7%</font></td>
<td WIDTH="24%" HEIGHT="20"><p ALIGN="CENTER"><font size="2">79 (avg.)</font></td>
</tr>
<tr>
<td COLSPAN="3" HEIGHT="20"><sup><p ALIGN="LEFT"><font size="2">1 </font> </sup> <font size="2">
Owned in the Total Return Fund.</font></td>
</tr>
<tr>
<td COLSPAN="3" HEIGHT="20"><sup><p ALIGN="LEFT"><font size="2">2 </font> </sup> <font size="2">
Purchased during the fiscal year.</font></td>
</tr>
<tr>
<td WIDTH="100%" HEIGHT="20" colspan="3"><p ALIGN="CENTER"><font size="2">Chart 1</font></td>
</tr>
</TABLE>
</div>
<P ALIGN="left">
<P ALIGN="JUSTIFY">
The narrow nature of this bull market during the Total Return's fiscal year
is clearly illustrated in Chart 1 to the right. The table illustrates that seven stocks provided
78.7% of the S&P 500 Index's total return for the year! If a portfolio did not contain
virtually all of these securities, in the same or higher weightings that they comprise in the
Index, it was difficult to match or exceed that Index's return for the year. Furthermore, the
average P/E of this small group (79 times current 12 months' earnings) was more than 2.5 times
the current P/E of the S&P 500 Index.
<P ALIGN="JUSTIFY">The disproportionate impact of this small group of companies has led many
investment professionals to conclude that the S&P 500 Index return for the fiscal year is
not truly representative of the broader stock market's actual results.
<P ALIGN="JUSTIFY">
<P ALIGN="JUSTIFY"><FONT COLOR="#004e61">TOTAL RETURN FUND</FONT>
<P ALIGN="JUSTIFY" style="margin-top: 0"><I>Philosophy</I>
<P ALIGN="JUSTIFY" style="margin-top: 0">The Total Return Fund is a broadly diversified portfolio invested in
securities across all economic sectors, as illustrated in Chart 2 to the right. Within
each sector, we attempt to select companies which are experiencing increasing cash flow
returns on their invested capital.
<!-- Table named "Chart 2" represents data used to create bar graph comparison included in report -->
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<table BORDER="1" CELLSPACING="0" BORDERCOLOR="#000000" CELLPADDING="2" WIDTH="180"
font FACE="Times New Roman" COLOR="#000000">
<tr>
<td WIDTH="47%" HEIGHT="16"><p></p></td>
<td WIDTH="24%" HEIGHT="16"><p ALIGN="CENTER"><font size="2">S&P</font></td>
<td WIDTH="29%" HEIGHT="16"><p ALIGN="LEFT"><font size="2">Sheffield Funds</font></td>
</tr>
<tr>
<td WIDTH="47%" HEIGHT="11"><p ALIGN="LEFT"><font size="2">Basic Materials</font></td>
<td WIDTH="24%" HEIGHT="11"><p ALIGN="RIGHT"><font size="2">2.94%</font></td>
<td WIDTH="29%" HEIGHT="11"><p ALIGN="RIGHT"><font size="2">3.2%</font></td>
</tr>
<tr>
<td WIDTH="47%" HEIGHT="22"><p ALIGN="LEFT"><font size="2">Energy</font></td>
<td WIDTH="24%" HEIGHT="22"><p ALIGN="RIGHT"><font size="2">5.99%</font></td>
<td WIDTH="29%" HEIGHT="22"><p ALIGN="RIGHT"><font size="2">4.5%</font></td>
</tr>
<tr>
<td WIDTH="47%" HEIGHT="11"><p ALIGN="LEFT"><font size="2">Industrial</font></td>
<td WIDTH="24%" HEIGHT="11"><p ALIGN="RIGHT"><font size="2">7.38%</font></td>
<td WIDTH="29%" HEIGHT="11"><p ALIGN="RIGHT"><font size="2">8.2%</font></td>
</tr>
<tr>
<td WIDTH="47%" HEIGHT="11"><p ALIGN="LEFT"><font size="2">Conglomerates</font></td>
<td WIDTH="24%" HEIGHT="11"><p ALIGN="RIGHT"><font size="2">0.14%</font></td>
<td WIDTH="29%" HEIGHT="11"><p ALIGN="RIGHT"><font size="2">4.7%</font></td>
</tr>
<tr>
<td WIDTH="47%" HEIGHT="11"><p ALIGN="LEFT"><font size="2">Consumer Cyclical</font></td>
<td WIDTH="24%" HEIGHT="11"><p ALIGN="RIGHT"><font size="2">13.96%</font></td>
<td WIDTH="29%" HEIGHT="11"><p ALIGN="RIGHT"><font size="2">6.8%</font></td>
</tr>
<tr>
<td WIDTH="47%" HEIGHT="11"><p ALIGN="LEFT"><font size="2">Cons. Non Cyclical</font></td>
<td WIDTH="24%" HEIGHT="11"><p ALIGN="RIGHT"><font size="2">17.00%</font></td>
<td WIDTH="29%" HEIGHT="11"><p ALIGN="RIGHT"><font size="2">20.7%</font></td>
</tr>
<tr>
<td WIDTH="47%" HEIGHT="11"><p ALIGN="LEFT"><font size="2">Technology</font></td>
<td WIDTH="24%" HEIGHT="11"><p ALIGN="RIGHT"><font size="2">25.43%</font></td>
<td WIDTH="29%" HEIGHT="11"><p ALIGN="RIGHT"><font size="2">25.9%</font></td>
</tr>
<tr>
<td WIDTH="47%" HEIGHT="11"><p ALIGN="LEFT"><font size="2">Financial</font></td>
<td WIDTH="24%" HEIGHT="11"><p ALIGN="RIGHT"><font size="2">14.14%</font></td>
<td WIDTH="29%" HEIGHT="11"><p ALIGN="RIGHT"><font size="2">13.7%</font></td>
</tr>
<tr>
<td WIDTH="47%" HEIGHT="11"><p ALIGN="LEFT"><font size="2">Utility</font></td>
<td WIDTH="24%" HEIGHT="11"><p ALIGN="RIGHT"><font size="2">13.02%</font></td>
<td WIDTH="29%" HEIGHT="11"><p ALIGN="RIGHT"><font size="2">12.3%</font></td>
</tr>
<tr>
<td WIDTH="100%" HEIGHT="11" colspan="3" align="center"><font size="2">Chart 2</font></td>
</tr>
</TABLE>
<p align="justify">Furthermore, we seek out those companies experiencing faster earnings
growth rates and faster dividend growth rates than the overall stock market. Growth rates
alone, however, do not make for a superior investment opportunity, as it is easy to overpay
for expected future growth. Our stock valuation model therefore aids us in determining
whether the current price of a stock is reasonable relative to its expected future earnings
growth rate and other factors.</p>
<div align="right" style="float: right; width: 344; height: 303">
<div align="right">
<table BORDER="1" CELLSPACING="1" CELLPADDING="2" WIDTH="344"
font FACE="Times New Roman" COLOR="#000000" height="293">
<tr>
<td WIDTH="50%" HEIGHT="32" valign="bottom"><b><p ALIGN="LEFT"><font size="2">Top 10 Stock Holdings</font></b></td>
<td WIDTH="23%" HEIGHT="32" valign="bottom"><b><p ALIGN="CENTER"><font size="2">% of Fund</font></b></td>
<td WIDTH="27%" HEIGHT="32"><b><p ALIGN="CENTER"><font size="2">Cumulative % of Fund</font></b></td>
</tr>
<tr>
<td WIDTH="50%" HEIGHT="15"><p ALIGN="LEFT"><font size="2">Cisco Systems, Inc.</font></td>
<td WIDTH="23%" HEIGHT="15"><p ALIGN="CENTER"><font size="2">5.61%</font></td>
<td WIDTH="27%" HEIGHT="15"><p ALIGN="CENTER"><font size="2">5.61%</font></td>
</tr>
<tr>
<td WIDTH="50%" HEIGHT="15"><p ALIGN="LEFT"><font size="2">Wal-Mart Stores, Inc.</font></td>
<td WIDTH="23%" HEIGHT="15"><p ALIGN="CENTER"><font size="2">5.05%</font></td>
<td WIDTH="27%" HEIGHT="15"><p ALIGN="CENTER"><font size="2">10.66%</font></td>
</tr>
<tr>
<td WIDTH="50%" HEIGHT="15"><p ALIGN="LEFT"><font size="2">SBC Communcations, Inc.</font></td>
<td WIDTH="23%" HEIGHT="15"><p ALIGN="CENTER"><font size="2">4.36%</font></td>
<td WIDTH="27%" HEIGHT="15"><p ALIGN="CENTER"><font size="2">15.02%</font></td>
</tr>
<tr>
<td WIDTH="50%" HEIGHT="15"><p ALIGN="LEFT"><font size="2">Microsoft Corp.</font></td>
<td WIDTH="23%" HEIGHT="15"><p ALIGN="CENTER"><font size="2">4.13%</font></td>
<td WIDTH="27%" HEIGHT="15"><p ALIGN="CENTER"><font size="2">19.15%</font></td>
</tr>
<tr>
<td WIDTH="50%" HEIGHT="15"><p ALIGN="LEFT"><font size="2">Bell Atlantic Corp.</font></td>
<td WIDTH="23%" HEIGHT="15"><p ALIGN="CENTER"><font size="2">3.58%</font></td>
<td WIDTH="27%" HEIGHT="15"><p ALIGN="CENTER"><font size="2">22.73%</font></td>
</tr>
<tr>
<td WIDTH="50%" HEIGHT="15"><p ALIGN="LEFT"><font size="2">Bank of America Corp.</font></td>
<td WIDTH="23%" HEIGHT="15"><p ALIGN="CENTER"><font size="2">3.48%</font></td>
<td WIDTH="27%" HEIGHT="15"><p ALIGN="CENTER"><font size="2">26.21%</font></td>
</tr>
<tr>
<td WIDTH="50%" HEIGHT="15"><p ALIGN="LEFT"><font size="2">Honeywell, Inc.</font></td>
<td WIDTH="23%" HEIGHT="15"><p ALIGN="CENTER"><font size="2">3.19%</font></td>
<td WIDTH="27%" HEIGHT="15"><p ALIGN="CENTER"><font size="2">29.40%</font></td>
</tr>
<tr>
<td WIDTH="50%" HEIGHT="15"><p ALIGN="LEFT"><font size="2">Reliastar Financial Corp.</font></td>
<td WIDTH="23%" HEIGHT="15"><p ALIGN="CENTER"><font size="2">2.89%</font></td>
<td WIDTH="27%" HEIGHT="15"><p ALIGN="CENTER"><font size="2">32.29%</font></td>
</tr>
<tr>
<td WIDTH="50%" HEIGHT="15"><p ALIGN="LEFT"><font size="2">Procter & Gamble Co.</font></td>
<td WIDTH="23%" HEIGHT="15"><p ALIGN="CENTER"><font size="2">2.84%</font></td>
<td WIDTH="27%" HEIGHT="15"><p ALIGN="CENTER"><font size="2">35.13%</font></td>
</tr>
<tr>
<td WIDTH="50%" HEIGHT="15"><p ALIGN="LEFT"><font size="2">Merck & Co., Inc.</font></td>
<td WIDTH="23%" HEIGHT="15"><p ALIGN="CENTER"><font size="2">2.73%</font></td>
<td WIDTH="27%" HEIGHT="15"><p ALIGN="CENTER"><font size="2">37.86%</font></td>
</tr>
<tr>
<td WIDTH="100%" HEIGHT="15" colspan="3"><p ALIGN="CENTER"><font size="2">Chart
3</font></td>
</tr>
</TABLE>
</div>
</div>
<P ALIGN="JUSTIFY" style="margin-top: 0"><I>Performance</I>
<P ALIGN="JUSTIFY" style="margin-top: 0">The Fund's philosophy of broad diversification and fairly even weightings
among the portfolio's individual holdings has resulted in underperformance relative to the
capitalization-weighted S&P 500 Index. The Fund generated a total return of 13.7% vs.
25.8% for the S&P 500 during this past fiscal year. When performance for the Index is
measured on an equally-weighted basis for this past fiscal year (meaning each stock is given
equal weighting when measuring portfolio performance), the resulting Index gain for the year
becomes 16.2%, which is more in line with the Fund's performance.
<P ALIGN="JUSTIFY">
<P ALIGN="JUSTIFY">The Total Return Fund was also hurt by sharp declines in the price of a small
number of stocks held in the portfolio at different times during the year. The high price level
of today's stock market offers no room for earnings disappointment, no matter how minor that
disappointment may be for a given company. For example, a decline in the death rate throughout
the year caused the share price of Service Corp. International to decline approximately 55%
within a 5-day period. Furthermore, rising interest rates caused declines in a number of financial
stocks in our portfolio during the year. Companies including Allstate Insurance, First Union Bank,
and Unumprovident (insurance) all experienced significant declines. Finally, energy related stock
prices experienced significant declines earlier in the fiscal year.
<P ALIGN="JUSTIFY">
<P ALIGN="JUSTIFY" style="margin-top: 0"><I>Economic Analysis</I>
<P ALIGN="JUSTIFY" style="margin-top: 0">On a per share basis, the Fund earned $0.29 from the receipt of interest and
dividends during the past twelve months. These earnings were reduced by the Fund's operating
expenses, which totaled $0.25 per share. The balance of $0.04 per share is described as the Fund's
net investment income. Net investment income has continued to decline from past years as increases
in the stock market have caused dividend yields to fall. Furthermore, during the past few years,
many companies have increased purchases of their shares in the open market in lieu of larger
dividend payments as a way to increase shareholder value. The Fund had also taken positions in a
number of non-dividend paying stocks this past year, although such positions are generally kept
at a minimum.
<P ALIGN="JUSTIFY">
<P ALIGN="JUSTIFY">The Fund's total return of 13.71% for its fiscal year was
derived from securities appreciation together with dividend and interest income
from securities held. This return was created from realized and unrealized gains
of $2.06 per share. However, the Fund made a cash distribution from gains
realized in its prior fiscal year amounting to $2.07 per share. Thus, the net
asset value (NAV) per share did not change even though a positive return was
generated.
<P ALIGN="JUSTIFY">
<P ALIGN="JUSTIFY" style="margin-top: 0"><FONT COLOR="#005737">INTERMEDIATE TERM BOND FUND</FONT>
<P ALIGN="JUSTIFY" style="margin-top: 0"><I>Philosophy</I>
<P ALIGN="JUSTIFY" style="margin-top: 0">Our investment goals for this Fund are twofold. First, we seek to manage a
portfolio of investment quality, intermediate-term corporate bonds. Intermediate-term
government bonds have demonstrated a history of generating higher total returns with lower
volatility over long periods of time than have long-term bonds. Our Fund seeks to participate
in this investment phenomena. Second, we seek a modest degree of capital appreciation by
investing a small portion of our assets in two other types of investments. The first type
is convertible securities including convertible bonds and convertible preferred stocks.
Second, we invest a modest portion of the Bond Fund's assets in high-yielding common stocks.
<!-- Page 4 begins at "lower volatility over long periods of time" from paragraph above -->
<P ALIGN="JUSTIFY">
<P ALIGN="JUSTIFY">Out of the broad universe of fixed- and variable-rate bonds traded in the
marketplace, our Fund focuses primarily on investment-quality corporate bonds (rated BBB and
above) which typically mature in from one-to-ten years. We can, and do, buy bonds with
maturity dates exceeding ten years as long as the average maturity of our entire bond
portfolio does not exceed seven years. By concentrating on intermediate-term bonds rather
than longer-term bonds, our Fund's <I>current</I> yield is never as high as it could be, but
we avoid the extreme volatility experienced by longer-term bonds when interest rates
fluctuate. Our stock holdings are acquired for the purpose of obtaining long-term capital
gains coupled with high dividend yields relative to the yield of the overall stock market.
Our philosophy anticipates that the capital appreciation we seek from our stock and convertible
security holdings will help to offset the operating expenses incurred by the Fund over a
three-to-five year period of time.
<P ALIGN="JUSTIFY">
<P ALIGN="JUSTIFY" style="margin-top: 0"><I>Performance</I>
<P ALIGN="JUSTIFY" style="margin-top: 0">During the recently completed fiscal year, bonds of all maturities experienced
price declines due to rising interest rates. Intermediate-term government bonds maturing in from
three-to-eight years experienced an average rate rise of approximately 1 1/2 percent (150 basis
points). The rise in interest rates for longer term bonds (10-30 years) averaged 110-130 basis
points. Our bond fund felt the impact of rising rates by experiencing price declines across all
bond positions. During the course of the year we reduced the average maturity of the portfolio
to 4.5 years from 6.5 years thereby reducing, but not eliminating, the impact of rising interest
rates on portfolio performance. The Fund's total return of -.22% for the year compared to a total
return of 1.49% for the Lehman Brothers Corporate Intermediate Term Bond Index we use as a market proxy.
<P ALIGN="JUSTIFY">
<P ALIGN="JUSTIFY" style="margin-top: 0"><I>Economic Analysis</I>
<P ALIGN="JUSTIFY" style="margin-top: 0">On a per share basis, the Fund earned $0.54 from the receipt of interest and
dividends during the past twelve months. These earnings were reduced by the Fund's operating
expenses, which totaled $0.13 per share. The balance of $0.41 per share is described as the
Fund's net investment income.
<P ALIGN="JUSTIFY">
<P ALIGN="JUSTIFY">The Fund distributed $0.15 per share in capital gains in fiscal 1999 from its prior
year's activities. Realized and unrealized portfolio losses for the year totaled $0.42 per
share. The net effect of these activities on the net asset value (NAV) per share was to reduce
the NAV by $0.56.
<P ALIGN="JUSTIFY">
<P ALIGN="JUSTIFY">Very truly yours,
<P ALIGN="JUSTIFY">
<P ALIGN="JUSTIFY" style="margin-top: 0">Roger A. Sheffield, CFA
Caroline L. Scott, CFA
<P ALIGN="JUSTIFY" style="margin-top: 0">President
Treasurer
<!-- Page 5 -->
<P ALIGN="JUSTIFY">
<P ALIGN="JUSTIFY">
<TABLE BORDER="1" CELLSPACING=1 CELLPADDING=3 WIDTH=301 FONT SIZE=1>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=17 width="278"><P align="center"><font color="#004E61">
Sheffield Total Return Fund</font></P></TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=17 width="278"><FONT SIZE=3><P ALIGN="CENTER">
Portfolio of Investments</FONT></TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=17 width="278"><FONT SIZE=3><P ALIGN="CENTER">
October 31, 1999</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP" HEIGHT=16><B><FONT SIZE=1><P>Short-Term Investments (0.3%)</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP" HEIGHT=16><B><FONT SIZE=1><P ALIGN="RIGHT">Par</FONT></B></TD>
<TD WIDTH="57" VALIGN="TOP" HEIGHT=16><B><FONT SIZE=1><P ALIGN="RIGHT">Value</FONT></B></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>UMB Bank Money Market</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP" HEIGHT=16><FONT SIZE=1><P>(cost - $53,906)</FONT></TD>
<TD WIDTH="47" VALIGN="TOP" HEIGHT=16><FONT SIZE=1><P ALIGN="RIGHT">$53,906</FONT></TD>
<TD WIDTH="57" VALIGN="TOP" HEIGHT=16><U><FONT SIZE=1><P ALIGN="RIGHT">$53,906</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP" HEIGHT=17><B><FONT SIZE=1><P>Common Stocks (97.0%)</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP" HEIGHT=17><B><FONT SIZE=1><P ALIGN="RIGHT">Shares</FONT></B></TD>
<TD WIDTH="57" VALIGN="TOP" HEIGHT=17><P> </P></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><B><FONT SIZE=1><P>Banking - 7.5%</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Bank of America Corp.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">10,546</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">$679,558</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Citigroup, Inc.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">3,850</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">208,862</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>MBNA Corp.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">13,000</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">359,125</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>State Street Corp.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">2,700</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT"> 205,538</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">1,453,083</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><B><FONT SIZE=1><P>Beverages - Soft Drink - 1.6%</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Coca-Cola Co.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">5,280</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">311,520</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><B><FONT SIZE=1><P>Chemicals - Specialty - 3.2%</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Avery Dennison Corp.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">4,540</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">283,750</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Ecolab, Inc.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">9,790</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">331,024</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">614,774</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><B><FONT SIZE=1><P>Computer Hardware - 7.9%</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Cisco Systems, Inc.*</FONT><font size="1">+</font></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">14,790</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">1,094,460</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>SCI Systems, Inc.*</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">9,000</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT"> 444,375</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP">
<U><FONT SIZE=1><P ALIGN="RIGHT">1,538,835</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP">
<B><FONT SIZE=1><P>Computer Software - 6.9%</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>America Online, Inc.*</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">1,020</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">131,962</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>BMC Software, Inc.*</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">3,800</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">243,912</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Microsoft Corp.*</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">8,700</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">805,294</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Unisys Corp.*</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">7,000</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT"> 157,938</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">1,339,106</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><B><FONT SIZE=1><P>Diversified - 4.6%</FONT> </B></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>AlliedSignal, Inc.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">8,800</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">501,050</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Textron, Inc.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">5,200</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">401,375</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">902,425</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><B><FONT SIZE=1><P>Electrical Equipment - 3.2%</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Honeywell, Inc.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">5,900</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">622,081</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="211" VALIGN="TOP"><B><FONT SIZE=1><P>Electronics - Semiconductor - 6.0%</FONT></B></TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Applied Materials, Inc.*</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">2,300</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">206,569</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Intel Corp.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">6,680</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">517,282</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Linear Technology Corp.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">6,516</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT"> 455,713</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">1,179,564</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><B><FONT SIZE=1><P>Financial - Misc. - 1.5%</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Fannie Mae</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">4,210</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">298,121</FONT></U></TD>
</TR>
</TABLE>
<p> </p>
<TABLE BORDER="1" CELLSPACING=1 CELLPADDING=3 WIDTH=301>
<TR>
<TD WIDTH="163" VALIGN="TOP" HEIGHT=16><B><FONT SIZE=1><P>Common Stocks - continued</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP" HEIGHT=16><B><FONT SIZE=1><P ALIGN="RIGHT">Shares</FONT></B></TD>
<TD WIDTH="57" VALIGN="TOP" HEIGHT=16><B><FONT SIZE=1><P ALIGN="RIGHT">Value</FONT></B></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><B><FONT SIZE=1><P>Food Processing - 2.6%</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Hershey Foods Corp.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">4,710</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">$237,855</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Philip Morris Cos., Inc.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">10,500</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">264,469</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">502,324</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><B><FONT SIZE=1><P>Household Products - 5.0%</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Colgate-Palmolive Co.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">7,120</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">430,760</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Procter & Gamble Co.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">5,275</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">553,216</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">983,976</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><B><FONT SIZE=1><P>Insurance - 4.7%</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>American International Group, Inc.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">3,341</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">343,914</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Reliastar Financial Corp.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">13,115</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">563,125</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">907,039</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><B><FONT SIZE=1><P>Manufacturing - 2.3%</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Illinois Tool Works, Inc.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">6,030</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">442,828</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="211" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=1><P>Medical - Pharmaceutical - 9.4%</FONT></B></TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Abbott Laboratories</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">11,000</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">444,125</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Johnson & Johnson</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">3,700</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">387,575</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Merck & Co., Inc.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">6,700</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">533,069</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Schering-Plough Corp.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">9,300</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT"> 460,350</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">1,825,119</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><B><FONT SIZE=1><P>Medical Products - 1.5%</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Medtronic, Inc.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">8,600</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">295,625</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><B><FONT SIZE=1><P>Office Equipment - 3.8%</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Diebold, Inc.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">7,590</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">199,238</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Pitney Bowes, Inc.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">4,600</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">209,587</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Xerox Corp.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">11,880</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">337,095</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">745,920</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><B><FONT SIZE=1><P>Oil & Gas - 2.1%</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Exxon Corp.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">5,650</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">418,453</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="211" VALIGN="TOP" COLSPAN=2><B><FONT SIZE=1><P>Retail - Department Stores - 6.8%</FONT></B></TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Dollar General Corp.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">12,837</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">338,576</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Wal-Mart Stores, Inc.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">17,360</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT"> 984,095</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">1,322,671</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="211" VALIGN="TOP" COLSPAN=2><B><FONT SIZE=1><P>Telecommunications Equipment </FONT> </B><FONT SIZE=1>-<B> 0.3%</B></FONT></TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Lucent Technologies, Inc.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">1,000</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">64,250</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><B><FONT SIZE=1><P>Transportation - 1.9%</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>FDX Corp.*</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">8,480</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">365,170</FONT></U></TD>
</TR>
</TABLE>
<!-- Page 6 -->
<p> </p>
<TABLE BORDER="1" CELLSPACING=1 CELLPADDING=3 WIDTH=301>
<TR>
<TD WIDTH="163" VALIGN="TOP" HEIGHT=16><B><FONT SIZE=1><P>Common Stocks </FONT> </B><FONT SIZE=1>-<B> continued</B></FONT></TD>
<TD WIDTH="47" VALIGN="TOP" HEIGHT=16><B><FONT SIZE=1><P ALIGN="RIGHT">Shares</FONT></B></TD>
<TD WIDTH="57" VALIGN="TOP" HEIGHT=16><B><FONT SIZE=1><P ALIGN="RIGHT">Value</FONT></B></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><B><FONT SIZE=1><P>Utilities </FONT> </B><FONT SIZE=1>-<B> 14.2%</B></FONT></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><B><FONT SIZE=1><P> Natural Gas - 2.3%</FONT> </B></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P> Williams Cos., Inc.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">12,224</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">$458,400</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><B><FONT SIZE=1><P> Telephone - 11.9%</FONT> </B></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P> AT&T Corp.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">8,250</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">385,688</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P> Bell Atlantic Corp.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">10,760</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">698,727</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P> MCI Worldcom, Inc.*</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">4,500</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">386,156</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P> SBC Communications, Inc.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">16,702</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT"> 849,714</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">2,320,285</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP" HEIGHT=16><B><FONT SIZE=1><P>Total Common Stocks</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP" HEIGHT=16><P> </P></TD>
<TD WIDTH="57" VALIGN="TOP" HEIGHT=16><P> </P></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP" HEIGHT=16><FONT SIZE=1><P>(cost - $8,738,603)</FONT></TD>
<TD WIDTH="114" VALIGN="TOP" COLSPAN=2 HEIGHT=16><FONT SIZE=1><P ALIGN="RIGHT">$18,911,569</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP" HEIGHT=17><B><FONT SIZE=1><P>Convertible Bonds (2.5%)</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP" HEIGHT=17><B><FONT SIZE=1><P ALIGN="RIGHT">Par</FONT></B></TD>
<TD WIDTH="57" VALIGN="TOP" HEIGHT=17><B><FONT SIZE=1><P ALIGN="RIGHT">Value</FONT></B></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Adaptec, Inc. 4.75% Conv. Sub.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P> Notes 2/1/04</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">$215,000</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">$221,988</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Dura Pharmaceuticals, Inc. 3.5% </FONT></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P> Conv. Sub. Notes 7/15/02</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">135,000</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">103,950</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>National Data Corp. 5.0% Conv. </FONT></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P> Sub. Notes 11/1/03</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">200,000</FONT></TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">164,250</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP" HEIGHT=16><B><FONT SIZE=1><P>Total Convertible Bonds</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP" HEIGHT=16><P> </P></TD>
<TD WIDTH="57" VALIGN="TOP" HEIGHT=16><P> </P></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP" HEIGHT=16><FONT SIZE=1><P>(cost - $533,039)</FONT></TD>
<TD WIDTH="47" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="57" VALIGN="TOP" HEIGHT=16><FONT SIZE=1><P ALIGN="RIGHT">$490,188</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP" HEIGHT=16><B><FONT SIZE=1><P>Total Investments (99.8%)</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP" HEIGHT=16><P> </P></TD>
<TD WIDTH="57" VALIGN="TOP" HEIGHT=16><P> </P></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP" HEIGHT=16><FONT SIZE=1><P>(cost - $9,325,548)</FONT></TD>
<TD WIDTH="114" VALIGN="TOP" COLSPAN=2 HEIGHT=16><FONT SIZE=1><P ALIGN="RIGHT">$19,455,663 </FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP" HEIGHT=17><B><FONT SIZE=1><P>Options Outstanding (-0.3%)</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP" HEIGHT=17><P ALIGN="RIGHT"><b><font size="1">Contracts</font></b></TD>
<TD WIDTH="57" VALIGN="TOP" HEIGHT=17><B><FONT SIZE=1><P ALIGN="RIGHT">Value</FONT></B></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><B><FONT SIZE=1><P>Options Sold</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>Cisco Systems, Inc. Call Dec/65</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"><P ALIGN="RIGHT"><font size="1">50 ++</font></TD>
<TD WIDTH="57" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">($51,250)</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP" HEIGHT=16><B><FONT SIZE=1><P>Total Options Outstanding</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP" HEIGHT=16><P> </P></TD>
<TD WIDTH="57" VALIGN="TOP" HEIGHT=16><P> </P></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP" HEIGHT=16><FONT SIZE=1><P>(Premiums received - $32,345)</FONT></TD>
<TD WIDTH="47" VALIGN="TOP" HEIGHT=16><P> </P></TD>
<TD WIDTH="57" VALIGN="TOP" HEIGHT=16><FONT SIZE=1><P ALIGN="RIGHT">($51,250)</FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP" HEIGHT=17><P> </P></TD>
<TD WIDTH="47" VALIGN="TOP" HEIGHT=17><P> </P></TD>
<TD WIDTH="57" VALIGN="TOP" HEIGHT=17><P> </P></TD>
</TR>
<TR>
<TD WIDTH="211" VALIGN="TOP" COLSPAN=2 HEIGHT=17><B><FONT SIZE=1><P>Other Assets, Less Liabilities (0.5%)</FONT></B></TD>
<TD WIDTH="57" VALIGN="TOP" HEIGHT=17><FONT SIZE=1><P ALIGN="RIGHT">$97,732 </FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP" HEIGHT=17><P> </P></TD>
<TD WIDTH="47" VALIGN="TOP" HEIGHT=17><P> </P></TD>
<TD WIDTH="57" VALIGN="TOP" HEIGHT=17><P> </P></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP" HEIGHT=17><B><FONT SIZE=1><P>Net Assets (100%)</FONT></B></TD>
<TD WIDTH="114" VALIGN="TOP" COLSPAN=2 HEIGHT=17><FONT SIZE=1><P ALIGN="RIGHT">$19,502,145 </FONT></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP" HEIGHT=17><P> </P></TD>
<TD WIDTH="47" VALIGN="TOP" HEIGHT=17><P> </P></TD>
<TD WIDTH="57" VALIGN="TOP" HEIGHT=17><P> </P></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP" HEIGHT=17><B><FONT SIZE=1><P>Net Asset Value Per Share</FONT></B></TD>
<TD WIDTH="47" VALIGN="TOP" HEIGHT=17><P> </P></TD>
<TD WIDTH="57" VALIGN="TOP" HEIGHT=17><U><FONT SIZE=1><P ALIGN="RIGHT"><strong>$16.95</strong></FONT></U></TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"><FONT SIZE=1><P>* Non-income producing.</FONT></TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="163" VALIGN="TOP"> </TD>
<TD WIDTH="47" VALIGN="TOP"> </TD>
<TD WIDTH="57" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 width="278"><FONT SIZE=1>+ Portion of the security is segregated
as collateral for options outstanding. Aggregate value of segregated securities - $370,000.</FONT></TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 width="278"><font size="1"> </font></TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 width="278"><FONT SIZE=1><P>++ One contract is
exercisable for 100 shares.</FONT></TD>
</TR>
</TABLE>
<p> </p>
<table BORDER="1" CELLSPACING="1" CELLPADDING="3" WIDTH="292">
<tr>
<td VALIGN="TOP" COLSPAN=3 HEIGHT=17 width="278">
<p align="center"><font color="#005737">Sheffield Intermediate Term Bond Fund</font></p></td>
</tr>
<tr>
<td VALIGN="TOP" COLSPAN=3 HEIGHT=17 width="278"><p ALIGN="CENTER">Portfolio of Investments</td>
</tr>
<tr>
<td VALIGN="TOP" COLSPAN=3 HEIGHT=17 width="278"><p ALIGN="CENTER">October 31, 1999</td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP" HEIGHT="16"><b><font SIZE="1"><p>Short-Term Investments (3.2%)</font></b></td>
<td WIDTH="16%" VALIGN="TOP" HEIGHT="16"><b><font SIZE="1"><p ALIGN="RIGHT">Par</font></b></td>
<td WIDTH="27%" VALIGN="TOP" HEIGHT="16"><b><font SIZE="1"><p ALIGN="RIGHT">Value</font></b></td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><font SIZE="1"><p>UMB Bank Money Market</font></td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP" HEIGHT="16"><font SIZE="1"><p>(cost - $403,074)</font></td>
<td WIDTH="16%" VALIGN="TOP" HEIGHT="16"><font SIZE="1"><p ALIGN="RIGHT">$403,074</font></td>
<td WIDTH="27%" VALIGN="TOP" HEIGHT="16"><u><font SIZE="1"><p ALIGN="RIGHT">$403,074</font></u></td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><p> </td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP" HEIGHT="17"><b><font SIZE="1"><p>Common Stocks (8.7%)</font></b></td>
<td WIDTH="16%" VALIGN="TOP" HEIGHT="17"><b><font SIZE="1"><p ALIGN="RIGHT">Shares</font></b></td>
<td WIDTH="27%" VALIGN="TOP" HEIGHT="17"><p> </p>
</td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><b><font SIZE="1"><p>Auto - 0.8%</font></b></td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><font SIZE="1"><p>General Motors Corp.</font></td>
<td WIDTH="16%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">1,450</font></td>
<td WIDTH="27%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">$102,134</font></u></td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><p> </td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><b><font SIZE="1"><p>Auto/Truck Parts - 0.9%</font></b></td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><font SIZE="1"><p>Goodyear Tire & Rubber Co.</font></td>
<td WIDTH="16%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">2,635</font></td>
<td WIDTH="27%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">108,859</font></u></td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><p> </td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><b><font SIZE="1"><p>Banking - 1.3%</font></b></td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><font SIZE="1"><p>J.P. Morgan & Co.</font></td>
<td WIDTH="16%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">1,240</font></td>
<td WIDTH="27%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">162,285</font></u></td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><p> </td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><b><font SIZE="1"><p>Chemicals - 1.8%</font></b></td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><font SIZE="1"><p>Du Pont (E.I.) De Nemours & Co.</font></td>
<td WIDTH="16%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">1,049</font></td>
<td WIDTH="27%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">67,595</font></td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><font SIZE="1"><p>Minnesota Mining & Mfg. Co.</font></td>
<td WIDTH="16%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">1,695</font></td>
<td WIDTH="27%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">161,131</font></u></td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><p> </td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">228,726</font></u></td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><p> </td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><b><font SIZE="1"><p>Electrical Equipment - 1.1%</font></b></td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><font SIZE="1"><p>Eastman Kodak Co.</font></td>
<td WIDTH="16%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">1,950</font></td>
<td WIDTH="27%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">134,428</font></u></td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><p> </td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><b><font SIZE="1"><p>Food Processing - 0.5%</font></b></td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><font SIZE="1"><p>Philip Morris Cos., Inc.</font></td>
<td WIDTH="16%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">2,735</font></td>
<td WIDTH="27%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">68,888</font></u></td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><p> </td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="73%" VALIGN="TOP" COLSPAN="2"><b><font SIZE="1"><p>Manufacturing - Machinery - 1.3%</font></b></td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><font SIZE="1"><p>Caterpillar, Inc.</font></td>
<td WIDTH="16%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">2,890</font></td>
<td WIDTH="27%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">159,853</font></u></td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><p> </td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><b><font SIZE="1"><p>Oil & Gas - 1.0%</font></b></td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><font SIZE="1"><p>Exxon Corp.</font></td>
<td WIDTH="16%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">1,790</font></td>
<td WIDTH="27%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">132,572</font></u></td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"> </td>
<td WIDTH="16%" VALIGN="TOP"> </td>
<td WIDTH="27%" VALIGN="TOP"> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP" HEIGHT="16"><b><font SIZE="1"><p>Total Common Stocks</font></b></td>
<td WIDTH="16%" VALIGN="TOP" HEIGHT="16"><p> </p></td>
<td WIDTH="27%" VALIGN="TOP" HEIGHT="16"><p> </p></td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP" HEIGHT="16"><font SIZE="1"><p>(cost - $858,551)</font></td>
<td WIDTH="16%" VALIGN="TOP" HEIGHT="16"><p> </p></td>
<td WIDTH="27%" VALIGN="TOP" HEIGHT="16"><font SIZE="1"><p ALIGN="RIGHT">$1,097,745</font></td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><p> </td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="73%" VALIGN="TOP" COLSPAN="2" HEIGHT="17"><b><font SIZE="1"><p ALIGN="JUSTIFY">Corporate Bonds and Notes (79.1%) Par</font></b></td>
<td WIDTH="27%" VALIGN="TOP" HEIGHT="17"><b><font SIZE="1"><p ALIGN="RIGHT">Value</font></b></td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><b><font SIZE="1"><p>Aerospace - 0.8%</font></b></td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><font SIZE="1"><p>Lockheed Martin Corp. 7.25%</font></td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><font size="1"> Guaranteed Notes
5/15/06</font></td>
<td WIDTH="16%" VALIGN="TOP"><font size="1">$100,000</font></td>
<td align="right"><font size="1">$97,695</font>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><p> </td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><b><font SIZE="1"><p>Banking - 9.8%</font></b></td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><font SIZE="1"><p>Bank One Corp. 7.25% Sub. Notes</font></td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><font SIZE="1"><p> 8/1/02</font></td>
<td WIDTH="16%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">250,000</font></td>
<td WIDTH="27%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">253,325</font></td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><font SIZE="1"><p>BankBoston NA 7.0% Sub. Notes</font></td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><font SIZE="1"><p> 9/15/07</font></td>
<td WIDTH="16%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">170,000</font></td>
<td WIDTH="27%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">165,718</font></td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><font SIZE="1"><p>Bankers Trust Corp. 7.375% Sub.</font></td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><font SIZE="1"><p> Notes 5/1/08</font></td>
<td WIDTH="16%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">45,000</font></td>
<td WIDTH="27%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">44,511</font></td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><font SIZE="1"><p>Chase Manhattan Corp. 7.125%</font></td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><font SIZE="1"><p> Sub. Notes 2/1/07</font></td>
<td WIDTH="16%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">115,000</font></td>
<td WIDTH="27%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">114,555</font></td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><font SIZE="1"><p>First Union National Bank/NJ</font></td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><font SIZE="1"><p> 7.125% Sub. Notes 10/15/06</font></td>
<td WIDTH="16%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">100,000</font></td>
<td WIDTH="27%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">98,805</font></td>
</tr>
<tr>
<td WIDTH="57%" VALIGN="TOP"><p> </td>
<td WIDTH="16%" VALIGN="TOP"><p> </td>
<td WIDTH="27%" VALIGN="TOP"><p> </td>
</tr>
</TABLE>
<!-- Page 7 -->
<p> </p>
<table BORDER="1" CELLSPACING="1" CELLPADDING="3" WIDTH="290">
<tr>
<td WIDTH="68%" VALIGN="TOP" COLSPAN="3" HEIGHT="16"><b><font SIZE="1"><p>Corporate Bonds and Notes </font></b><font SIZE="1">-<b> continued</b></font></td>
<td WIDTH="9%" VALIGN="TOP" HEIGHT="16"><b><font SIZE="1"><p ALIGN="RIGHT">Par</font></b></td>
<td WIDTH="23%" VALIGN="TOP" HEIGHT="16"><b><font SIZE="1"><p ALIGN="RIGHT">Value</font></b></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><b><font SIZE="1"><p>Banking (cont.)</font></b></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>J.P. Morgan & Co., Inc. 7.625%</font></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> Sub. Notes 9/15/04</font></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><font SIZE="1"><p ALIGN="RIGHT">$250,000</font></td>
<td WIDTH="23%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">$257,965</font></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>MBNA Corp. 6.875% Sr. Notes</font></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> 6/1/05</font></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><font SIZE="1"><p ALIGN="RIGHT">250,000</font></td>
<td WIDTH="23%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">241,858</font></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Wells Fargo & Co. 7.125% Sub.</font></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> Notes 8/15/06</font></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><font SIZE="1"><p ALIGN="RIGHT">70,000</font></td>
<td WIDTH="23%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">
69,821</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">1,246,558</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><b><font SIZE="1"><p>Chemicals - Specialty - 2.3%</font></b></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Praxair, Inc. 6.75% Notes 3/1/03</font></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><font SIZE="1"><p ALIGN="RIGHT">300,000</font></td>
<td WIDTH="23%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">297,255</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><b><font SIZE="1"><p>Commercial Services - 1.0%</font></b></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Browning-Ferris Industries, Inc.</font></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> 6.375% Sr. Notes 1/15/08</font></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><font SIZE="1"><p ALIGN="RIGHT">150,000</font></td>
<td WIDTH="23%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">123,007</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><b><font SIZE="1"><p>Computer Software - 3.9%</font></b></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Electronic Data Systems Corp.</font></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> 6.85% Notes 10/15/04</font></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><font SIZE="1"><p ALIGN="RIGHT">250,000</font></td>
<td WIDTH="23%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">250,895</font></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>First Data Corp. 6.625% Notes</font></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> 4/1/03</font></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><font SIZE="1"><p ALIGN="RIGHT">250,000</font></td>
<td WIDTH="23%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">247,335</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">498,230</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><b><font SIZE="1"><p>Computer Systems - 0.8%</font></b></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>International Business Machines</font></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> Corp. 6.375% Notes 6/15/00</font></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><font SIZE="1"><p ALIGN="RIGHT">100,000</font></td>
<td WIDTH="23%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">100,289</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><b><font SIZE="1"><p>Containers - 1.9%</font></b></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Crown Cork & Seal Co., Inc.</font></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> 6.75% Notes 4/15/03</font></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><font SIZE="1"><p ALIGN="RIGHT">250,000</font></td>
<td WIDTH="23%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">245,070</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><b><font SIZE="1"><p>Diversified - 2.0%</font></b></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>ITT Corp. 6.75% Notes 11/15/05</font></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><font SIZE="1"><p ALIGN="RIGHT">150,000</font></td>
<td WIDTH="23%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">134,171</font></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Service Corp. International</font></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> 6.875% Notes 10/1/07</font></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><font SIZE="1"><p ALIGN="RIGHT">150,000</font></td>
<td WIDTH="23%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">114,205</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">248,376</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><b><font SIZE="1"><p>Electronics - 2.2%</font></b></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Raytheon Co. 6.5% Notes 7/15/05</font></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><font SIZE="1"><p ALIGN="RIGHT">300,000</font></td>
<td WIDTH="23%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">286,524</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><b><font SIZE="1"><p>Entertainment/Leisure - 2.3%</font></b></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Mattel, Inc. 6.0% Notes 7/15/03</font></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><font SIZE="1"><p ALIGN="RIGHT">300,000</font></td>
<td WIDTH="23%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">286,443</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><b><font SIZE="1"><p>Financial - Insurance - 2.3%</font></b></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="64%" VALIGN="TOP" COLSPAN="2"><font SIZE="1"><p>Loews Corp. 6.75% Notes 12/15/06</font></td>
<td WIDTH="13%" VALIGN="TOP" COLSPAN="2"><font SIZE="1"><p ALIGN="RIGHT">300,000</font></td>
<td WIDTH="23%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">288,684</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><b><font SIZE="1"><p>Financial Services - 4.7%</font></b></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Bear Stearns Cos., Inc. 6.7% Sr.</font></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> Notes 8/1/03</font></td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><font SIZE="1"><p ALIGN="RIGHT">200,000</font></td>
<td WIDTH="23%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">196,954</font></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="19%" VALIGN="TOP" COLSPAN="3"><p> </td>
<td WIDTH="23%" VALIGN="TOP"><p> </td>
</tr>
</TABLE>
<p> </p>
<table BORDER="1" CELLSPACING="1" CELLPADDING="3" WIDTH="287">
<tr>
<td WIDTH="65%" VALIGN="TOP" COLSPAN="2" HEIGHT="16"><b><font SIZE="1"><p>Corporate Bonds and Notes </font></b><font SIZE="1">-<b> continued</b></font></td>
<td WIDTH="13%" VALIGN="TOP" HEIGHT="16"><b><font SIZE="1"><p ALIGN="RIGHT">Par</font></b></td>
<td WIDTH="22%" VALIGN="TOP" HEIGHT="16"><b><font SIZE="1"><p ALIGN="RIGHT">Value</font></b></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><b><font SIZE="1"><p>Financial Services (cont.)</font></b></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="78%" VALIGN="TOP" COLSPAN="3"><font SIZE="1"><p>Countrywide Funding Corp. 6.875%</font></td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> Guaranteed Notes 9/15/05</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><font SIZE="1"><p ALIGN="RIGHT">$200,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">$195,726</font></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Morgan Stanley Dean Witter &</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> Co. 6.3% Notes 1/15/06</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><font SIZE="1"><p ALIGN="RIGHT">220,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">204,334</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">597,014</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><b><font SIZE="1"><p>Food Processing - 4.8%</font></b></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Nabisco, Inc. 7.05% Notes 7/15/07</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><font SIZE="1"><p ALIGN="RIGHT">150,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">145,073</font></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Philip Morris Cos., Inc. 6.375%</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> Notes 2/1/06</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><font SIZE="1"><p ALIGN="RIGHT">250,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">230,600</font></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Tyson Foods, Inc. 6.08% Bonds</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> 2/1/00</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><font SIZE="1"><p ALIGN="RIGHT">235,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">235,075</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">610,748</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><b><font SIZE="1"><p>Healthcare - 1.9%</font></b></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Cardinal Health, Inc. 6.5% Notes</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> 2/15/04</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><font SIZE="1"><p ALIGN="RIGHT">250,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">245,335</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><b><font SIZE="1"><p>Household Products - 2.3%</font></b></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Procter & Gamble Co. 5.25%</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> Notes 9/15/03</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><font SIZE="1"><p ALIGN="RIGHT">300,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">287,469</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><b><font SIZE="1"><p>Oil & Gas - 4.5%</font></b></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Conoco, Inc. 5.9% Sr. Notes</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> 4/15/04</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><font SIZE="1"><p ALIGN="RIGHT">350,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">337,771</font></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Kinder Morgan, Inc. 6.8% Sr.</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> Notes 3/1/08</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><font SIZE="1"><p ALIGN="RIGHT">250,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">237,208</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">574,979</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="78%" VALIGN="TOP" COLSPAN="3"><b><font SIZE="1"><p>Personal & Business Credit - 11.5%</font></b></td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Associates Corp. NA 6.375% Sr.</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> Notes 10/15/02</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><font SIZE="1"><p ALIGN="RIGHT">250,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">247,720</font></td>
</tr>
<tr>
<td WIDTH="78%" VALIGN="TOP" COLSPAN="3"><font SIZE="1"><p>Caterpillar Financial Services Corp.</font></td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> 5.836% Med. Term Notes 5/1/00</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><font SIZE="1"><p ALIGN="RIGHT">200,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">199,866</font></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Ford Motor Credit Co. 6.125%</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> Notes 1/9/06</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><font SIZE="1"><p ALIGN="RIGHT">50,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">47,497</font></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>General Electric Capital Corp.</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> 6.5% Notes 11/1/06</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><font SIZE="1"><p ALIGN="RIGHT">170,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">165,464</font></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Household Finance Corp. 6.7%</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> Notes 6/15/02</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><font SIZE="1"><p ALIGN="RIGHT">180,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">179,152</font></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Sears Roebuck Acceptance Corp.</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> 5.87% Notes 1/8/01</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><font SIZE="1"><p ALIGN="RIGHT">248,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">245,188</font></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Sears Roebuck Acceptance Corp.</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> 6.75% Notes 9/15/05</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><font SIZE="1"><p ALIGN="RIGHT">150,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><font SIZE="1"><p ALIGN="RIGHT">144,550</font></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Sears Roebuck Acceptance Corp.</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> 6.7% Notes 9/18/07</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><font SIZE="1"><p ALIGN="RIGHT">240,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">
228,038</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">1,457,475</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP">
<p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="2"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
</TABLE>
<p> </p>
<table BORDER="1" CELLSPACING="1" CELLPADDING="3" WIDTH="287">
<tr>
<td WIDTH="68%" VALIGN="TOP" COLSPAN="4" HEIGHT="16"><b><font SIZE="1"><p>Corporate Bonds and Notes </font></b><font SIZE="1">-<b> continued</b></font></td>
<td WIDTH="10%" VALIGN="TOP" HEIGHT="16"><b><font SIZE="1"><p ALIGN="RIGHT">Par</font></b></td>
<td WIDTH="22%" VALIGN="TOP" HEIGHT="16"><b><font SIZE="1"><p ALIGN="RIGHT">Value</font></b></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><b><font SIZE="1"><p>Retail - 4.3%</font></b></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="4"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><b><font SIZE="1"><p>Department Stores - 1.9%</font></b></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="4"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>JC Penney Co., Inc. 6.125%</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="4"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> Notes 11/15/03</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="4"><font SIZE="1"><p ALIGN="RIGHT">$255,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">$244,958</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="4"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><b><font SIZE="1"><p>Food - 2.4%</font></b></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="4"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Albertson's, Inc. 6.375% Notes</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="4"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> 6/1/00</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="4"><font SIZE="1"><p ALIGN="RIGHT">300,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">300,702</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="4"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="78%" VALIGN="TOP" COLSPAN="5"><b><font SIZE="1"><p>Transportation - Railroad - 2.0%</font></b></td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Union Pacific Corp. 7.375% Notes</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="4"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> 5/15/01</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="4"><font SIZE="1"><p ALIGN="RIGHT">250,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">252,145</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="4"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><b><font SIZE="1"><p>Utilities - 13.8%</font></b></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="4"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><b><font SIZE="1"><p>Electric & Gas - 1.1%</font></b></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="4"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="78%" VALIGN="TOP" COLSPAN="5"><font SIZE="1"><p>Baltimore Gas & Electric Co. 6.5%</font></td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="66%" VALIGN="TOP" COLSPAN="3"><font SIZE="1"><p> 1<sup>st</sup> Ref. Mortgage Bonds 2/15/03</font></td>
<td WIDTH="13%" VALIGN="TOP" COLSPAN="2"><font SIZE="1"><p ALIGN="RIGHT">140,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">138,918</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="4"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><b><font SIZE="1"><p>Natural Gas - 1.5%</font></b></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="4"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Williams Holdings of Delaware</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="4"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p> 6.25% Deb. 2/1/06</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="4"><font SIZE="1"><p ALIGN="RIGHT">200,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><u><font SIZE="1"><p ALIGN="RIGHT">187,896</font></u></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><p> </td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="4"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><b><font SIZE="1"><p>Telephone - 11.2%</font></b></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="4"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1"><p>Airtouch Communications, Inc.</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="4"><p> </td>
<td WIDTH="22%" VALIGN="TOP"><p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1">
<p> 7.0% Notes 10/1/03</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="4"><font SIZE="1">
<p ALIGN="RIGHT">150,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><font SIZE="1">
<p ALIGN="RIGHT">150,212</font></td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1">
<p>AT&T Corp. 5.625% Global</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="4">
<p> </td>
<td WIDTH="22%" VALIGN="TOP">
<p> </td>
</tr>
<tr>
<td WIDTH="58%" VALIGN="TOP"><font SIZE="1">
<p> Notes 3/15/04</font></td>
<td WIDTH="20%" VALIGN="TOP" COLSPAN="4"><font SIZE="1">
<p ALIGN="RIGHT">300,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><font SIZE="1">
<p ALIGN="RIGHT">287,127</font></td>
</tr>
<tr>
<td WIDTH="78%" VALIGN="TOP" COLSPAN="5"><font SIZE="1">
<p>GTE Hawaiian Telephone Co., Inc.</font></td>
<td WIDTH="22%" VALIGN="TOP">
<p> </td>
</tr>
<tr>
<td WIDTH="62%" VALIGN="TOP" COLSPAN="2"><font SIZE="1">
<p> 6.75% 1<sup>st</sup> Mortgage 2/15/05</font></td>
<td WIDTH="16%" VALIGN="TOP" COLSPAN="3"><font SIZE="1">
<p ALIGN="RIGHT">300,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><font SIZE="1">
<p ALIGN="RIGHT">295,266</font></td>
</tr>
<tr>
<td WIDTH="62%" VALIGN="TOP" COLSPAN="2"><font SIZE="1">
<p>MCI Worldcom, Inc. 6.125% Sr.</font></td>
<td WIDTH="16%" VALIGN="TOP" COLSPAN="3">
<p> </td>
<td WIDTH="22%" VALIGN="TOP">
<p> </td>
</tr>
<tr>
<td WIDTH="62%" VALIGN="TOP" COLSPAN="2"><font SIZE="1">
<p> Notes 8/15/01</font></td>
<td WIDTH="16%" VALIGN="TOP" COLSPAN="3"><font SIZE="1">
<p ALIGN="RIGHT">250,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><font SIZE="1">
<p ALIGN="RIGHT">248,295</font></td>
</tr>
<tr>
<td WIDTH="62%" VALIGN="TOP" COLSPAN="2"><font SIZE="1">
<p>Northern Telecom 6.875% Notes</font></td>
<td WIDTH="16%" VALIGN="TOP" COLSPAN="3">
<p> </td>
<td WIDTH="22%" VALIGN="TOP">
<p> </td>
</tr>
<tr>
<td WIDTH="62%" VALIGN="TOP" COLSPAN="2"><font SIZE="1">
<p> 10/1/02</font></td>
<td WIDTH="16%" VALIGN="TOP" COLSPAN="3"><font SIZE="1">
<p ALIGN="RIGHT">300,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><font SIZE="1">
<p ALIGN="RIGHT">300,372</font></td>
</tr>
<tr>
<td WIDTH="62%" VALIGN="TOP" COLSPAN="2"><font SIZE="1">
<p>Pacific Bell 5.875% Deb. 2/15/06</font></td>
<td WIDTH="16%" VALIGN="TOP" COLSPAN="3"><font SIZE="1">
<p ALIGN="RIGHT">154,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><u><font SIZE="1">
<p ALIGN="RIGHT"> 146,215</font></u></td>
</tr>
<tr>
<td WIDTH="62%" VALIGN="TOP" COLSPAN="2">
<p> </td>
<td WIDTH="16%" VALIGN="TOP" COLSPAN="3">
<p> </td>
<td WIDTH="22%" VALIGN="TOP"><u><font SIZE="1">
<p ALIGN="RIGHT">1,427,487</font></u></td>
</tr>
<tr>
<td WIDTH="62%" VALIGN="TOP" COLSPAN="2">
<p> </td>
<td WIDTH="16%" VALIGN="TOP" COLSPAN="3">
<p> </td>
<td WIDTH="22%" VALIGN="TOP">
<p> </td>
</tr>
<tr>
<td WIDTH="62%" VALIGN="TOP" COLSPAN="2" HEIGHT="16"><b><font SIZE="1">
<p>Total Bonds and Notes</font></b></td>
<td WIDTH="16%" VALIGN="TOP" COLSPAN="3" HEIGHT="16">
<p> </p>
</td>
<td WIDTH="22%" VALIGN="TOP" HEIGHT="16">
<p> </p>
</td>
</tr>
<tr>
<td WIDTH="62%" VALIGN="TOP" COLSPAN="2" HEIGHT="16"><font SIZE="1">
<p>(cost - $10,359,010)</font></td>
<td WIDTH="38%" VALIGN="TOP" COLSPAN="4" HEIGHT="16"><font SIZE="1">
<p ALIGN="RIGHT">$10,043,257</font></td>
</tr>
<tr>
<td WIDTH="62%" VALIGN="TOP" COLSPAN="2">
<p> </td>
<td WIDTH="16%" VALIGN="TOP" COLSPAN="3">
<p> </td>
<td WIDTH="22%" VALIGN="TOP">
<p> </td>
</tr>
</TABLE>
<p> </p>
<table BORDER="1" CELLSPACING="1" CELLPADDING="3" WIDTH="290">
<tr>
<td WIDTH="59%" VALIGN="TOP" HEIGHT="16"><b><font SIZE="1">
<p>Convertible Bonds (7.8%)</font></b></td>
<td WIDTH="19%" VALIGN="TOP" HEIGHT="16"><b><font SIZE="1">
<p ALIGN="RIGHT">Par</font></b></td>
<td WIDTH="22%" VALIGN="TOP" HEIGHT="16"><b><font SIZE="1">
<p ALIGN="RIGHT">Value</font></b></td>
</tr>
<tr>
<td WIDTH="59%" VALIGN="TOP"><font SIZE="1">
<p>Adaptec, Inc. 4.75% Conv. Sub.</font></td>
<td WIDTH="19%" VALIGN="TOP">
<p> </td>
<td WIDTH="22%" VALIGN="TOP">
<p> </td>
</tr>
<tr>
<td WIDTH="59%" VALIGN="TOP"><font SIZE="1">
<p> Notes 2/1/04</font></td>
<td WIDTH="19%" VALIGN="TOP"><font SIZE="1">
<p ALIGN="RIGHT">$250,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><font SIZE="1">
<p ALIGN="RIGHT">$258,125</font></td>
</tr>
<tr>
<td WIDTH="59%" VALIGN="TOP"><font SIZE="1">
<p>ALZA Corp. 5.0% Conv. Sub.</font></td>
<td WIDTH="19%" VALIGN="TOP">
<p> </td>
<td WIDTH="22%" VALIGN="TOP">
<p> </td>
</tr>
<tr>
<td WIDTH="59%" VALIGN="TOP"><font SIZE="1">
<p> Deb. 5/1/06</font></td>
<td WIDTH="19%" VALIGN="TOP"><font SIZE="1">
<p ALIGN="RIGHT">250,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><font SIZE="1">
<p ALIGN="RIGHT">303,125</font></td>
</tr>
<tr>
<td WIDTH="59%" VALIGN="TOP"><font SIZE="1">
<p>Dura Pharmaceuticals, Inc. 3.5%</font></td>
<td WIDTH="19%" VALIGN="TOP">
<p> </td>
<td WIDTH="22%" VALIGN="TOP">
<p> </td>
</tr>
<tr>
<td WIDTH="59%" VALIGN="TOP"><font SIZE="1">
<p> Conv. Sub. Notes 7/15/02</font></td>
<td WIDTH="19%" VALIGN="TOP"><font SIZE="1">
<p ALIGN="RIGHT">75,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><font SIZE="1">
<p ALIGN="RIGHT">57,750</font></td>
</tr>
<tr>
<td WIDTH="59%" VALIGN="TOP"><font SIZE="1">
<p>National Data Corp. 5.0% Conv.</font></td>
<td WIDTH="19%" VALIGN="TOP">
<p> </td>
<td WIDTH="22%" VALIGN="TOP">
<p> </td>
</tr>
<tr>
<td WIDTH="59%" VALIGN="TOP"><font SIZE="1">
<p> Sub. Notes 11/1/03</font></td>
<td WIDTH="19%" VALIGN="TOP"><font SIZE="1">
<p ALIGN="RIGHT">200,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><font SIZE="1">
<p ALIGN="RIGHT">164,250</font></td>
</tr>
<tr>
<td WIDTH="59%" VALIGN="TOP"><font SIZE="1">
<p>Thermo Instrument Systems, Inc.</font></td>
<td WIDTH="19%" VALIGN="TOP">
<p> </td>
<td WIDTH="22%" VALIGN="TOP">
<p> </td>
</tr>
<tr>
<td WIDTH="59%" VALIGN="TOP"><font SIZE="1">
<p> 4.5% Conv. Deb. 10/15/03</font></td>
<td WIDTH="19%" VALIGN="TOP"><font SIZE="1">
<p ALIGN="RIGHT">250,000</font></td>
<td WIDTH="22%" VALIGN="TOP"><u><font SIZE="1">
<p ALIGN="RIGHT">206,875</font></u></td>
</tr>
<tr>
<td WIDTH="59%" VALIGN="TOP">
<p> </td>
<td WIDTH="19%" VALIGN="TOP">
<p> </td>
<td WIDTH="22%" VALIGN="TOP">
<p> </td>
</tr>
<tr>
<td WIDTH="59%" VALIGN="TOP" HEIGHT="16"><b><font SIZE="1">
<p>Total Convertible Bonds</font></b></td>
<td WIDTH="19%" VALIGN="TOP" HEIGHT="16">
<p> </p>
</td>
<td WIDTH="22%" VALIGN="TOP" HEIGHT="16">
<p> </p>
</td>
</tr>
<tr>
<td WIDTH="59%" VALIGN="TOP" HEIGHT="16"><font SIZE="1">
<p>(cost - $1,034,688)</font></td>
<td WIDTH="19%" VALIGN="TOP" HEIGHT="16">
<p> </p>
</td>
<td WIDTH="22%" VALIGN="TOP" HEIGHT="16"><font SIZE="1">
<p ALIGN="RIGHT">$990,125</font></td>
</tr>
<tr>
<td WIDTH="59%" VALIGN="TOP">
<p> </td>
<td WIDTH="19%" VALIGN="TOP">
<p> </td>
<td WIDTH="22%" VALIGN="TOP">
<p> </td>
</tr>
<tr>
<td WIDTH="59%" VALIGN="TOP" HEIGHT="16"><b><font SIZE="1">
<p>Total Investments (98.8%)</font></b></td>
<td WIDTH="19%" VALIGN="TOP" HEIGHT="16">
<p> </p>
</td>
<td WIDTH="22%" VALIGN="TOP" HEIGHT="16">
<p> </p>
</td>
</tr>
<tr>
<td WIDTH="59%" VALIGN="TOP" HEIGHT="16"><font SIZE="1">
<p>(cost - $12,655,323)</font></td>
<td WIDTH="41%" VALIGN="TOP" COLSPAN="2" HEIGHT="16"><font SIZE="1">
<p ALIGN="RIGHT">$12,534,201</font></td>
</tr>
<tr>
<td WIDTH="59%" VALIGN="TOP" HEIGHT="17">
<p> </p>
</td>
<td WIDTH="19%" VALIGN="TOP" HEIGHT="17">
<p> </p>
</td>
<td WIDTH="22%" VALIGN="TOP" HEIGHT="17">
<p> </p>
</td>
</tr>
<tr>
<td WIDTH="78%" VALIGN="TOP" COLSPAN="2" HEIGHT="17"><b><font SIZE="1">
<p>Other Assets, Less Liabilities (1.2%)</font></b></td>
<td WIDTH="22%" VALIGN="TOP" HEIGHT="17"><font SIZE="1">
<p ALIGN="RIGHT">$146,304</font></td>
</tr>
<tr>
<td WIDTH="59%" VALIGN="TOP" HEIGHT="17">
<p> </p>
</td>
<td WIDTH="19%" VALIGN="TOP" HEIGHT="17">
<p> </p>
</td>
<td WIDTH="22%" VALIGN="TOP" HEIGHT="17">
<p> </p>
</td>
</tr>
<tr>
<td WIDTH="59%" VALIGN="TOP" HEIGHT="17"><b><font SIZE="1">
<p>Net Assets (100%)</font></b></td>
<td WIDTH="41%" VALIGN="TOP" COLSPAN="2" HEIGHT="17"><font SIZE="1">
<p ALIGN="RIGHT">$12,680,505</font></td>
</tr>
<tr>
<td WIDTH="59%" VALIGN="TOP" HEIGHT="17">
<p> </p>
</td>
<td WIDTH="19%" VALIGN="TOP" HEIGHT="17">
<p> </p>
</td>
<td WIDTH="22%" VALIGN="TOP" HEIGHT="17">
<p> </p>
</td>
</tr>
<tr>
<td WIDTH="59%" VALIGN="TOP" HEIGHT="17"><b><font SIZE="1">
<p>Net Asset Value Per Share</font></b></td>
<td WIDTH="19%" VALIGN="TOP" HEIGHT="17">
<p> </p>
</td>
<td WIDTH="22%" VALIGN="TOP" HEIGHT="17"><u><font SIZE="1">
<p ALIGN="RIGHT">$9.02</font></u></td>
</tr>
<tr>
<td WIDTH="59%" VALIGN="TOP">
<p> </td>
<td WIDTH="19%" VALIGN="TOP">
<p> </td>
<td WIDTH="22%" VALIGN="TOP">
<p> </td>
</tr>
</TABLE>
<p> </p>
<TABLE BORDER="1" CELLSPACING=1 CELLPADDING=7 WIDTH=340>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3 HEIGHT=17<P>Financial Statements</TD>
<TD WIDTH="53" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="60" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR>
<TD WIDTH="212" VALIGN="TOP" COLSPAN=4 HEIGHT=16><B><FONT SIZE=1><P>Statements of Assets and Liabilities</FONT></B></TD>
<TD WIDTH="60" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3 HEIGHT=16><B><FONT SIZE=1><P>October 31, 1999</FONT></B></TD>
<TD WIDTH="53" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="60" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3> </TD>
<TD WIDTH="53" VALIGN="TOP" align="center"> </TD>
<TD WIDTH="60" VALIGN="TOP" align="center"> </TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3> </TD>
<TD WIDTH="53" VALIGN="TOP" align="center"><font color="#004E61" size="1">Sheffield</font></TD>
<TD WIDTH="60" VALIGN="TOP" align="center"><font color="#005737" size="1">Sheffield</font></TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3> </TD>
<TD WIDTH="53" VALIGN="TOP" align="center"><p align="center"><font color="#004E61" size="1">Total</font></p></TD>
<TD WIDTH="60" VALIGN="TOP" align="center"><font color="#005737" size="1">Intermediate</font></TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3> </TD>
<TD WIDTH="53" VALIGN="TOP" align="center"><font color="#004E61" size="1">Return</font></TD>
<TD WIDTH="60" VALIGN="TOP" align="center"><font color="#005737" size="1">Term Bond</font></TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3> </TD>
<TD WIDTH="53" VALIGN="TOP" align="center"><font color="#004E61" size="1"><u>
Fund </u></font></TD>
<TD WIDTH="60" VALIGN="TOP" align="center"><font color="#005737" size="1"><u>
Fund </u></font></TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><B><FONT SIZE=1><P>Assets:</FONT></B></TD>
<TD WIDTH="53" VALIGN="TOP"> </TD>
<TD WIDTH="60" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3> </TD>
<TD WIDTH="53" VALIGN="TOP"> </TD>
<TD WIDTH="60" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P>Investments at value (cost of </FONT></TD>
<TD WIDTH="53" VALIGN="TOP"> </TD>
<TD WIDTH="60" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P>
$9,325,548 and $12,655,323</FONT></TD>
<TD WIDTH="53" VALIGN="TOP"> </TD>
<TD WIDTH="60" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="134" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P>
respectively)</FONT></TD>
<TD WIDTH="60" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">$19,455,663</FONT></TD>
<TD WIDTH="60" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">$12,534,201</FONT></TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3> </TD>
<TD WIDTH="53" VALIGN="TOP"> </TD>
<TD WIDTH="60" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P>Receivables:</FONT></TD>
<TD WIDTH="53" VALIGN="TOP"> </TD>
<TD WIDTH="60" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P> Interest</FONT></TD>
<TD WIDTH="53" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">7,972</FONT></TD>
<TD WIDTH="60" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">167,044</FONT></TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P> Dividends</FONT></TD>
<TD WIDTH="53" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">19,646</FONT></TD>
<TD WIDTH="60" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">1,467</FONT></TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P> Portfolio securities sold</FONT></TD>
<TD WIDTH="53" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">411,637</FONT></TD>
<TD WIDTH="60" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">798,462</FONT></TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P> Prepaid insurance</FONT></TD>
<TD WIDTH="53" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">
2,957</FONT></U></TD>
<TD WIDTH="60" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">
1,794</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P> Total assets</FONT></TD>
<TD WIDTH="53" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">19,897,875</FONT></U></TD>
<TD WIDTH="60" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">13,502,968</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3> </TD>
<TD WIDTH="53" VALIGN="TOP"> </TD>
<TD WIDTH="60" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><B><FONT SIZE=1><P>Liabilities:</FONT></B></TD>
<TD WIDTH="53" VALIGN="TOP"> </TD>
<TD WIDTH="60" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3> </TD>
<TD WIDTH="53" VALIGN="TOP"> </TD>
<TD WIDTH="60" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P>Investment securities purchased</FONT></TD>
<TD WIDTH="53" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">290,584</FONT></TD>
<TD WIDTH="60" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">793,720</FONT></TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P>Redemptions</FONT></TD>
<TD WIDTH="53" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">10,000</FONT></TD>
<TD WIDTH="60" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">5,000</FONT></TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P>Call options written, at fair value</FONT></TD>
<TD WIDTH="53" VALIGN="TOP"> </TD>
<TD WIDTH="60" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><font size="1"> (premiums received - $32,345)</font></TD>
<TD WIDTH="53" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">51,250</FONT></TD>
<TD WIDTH="60" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">---</FONT></TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P>Accrued expenses</FONT></TD>
<TD WIDTH="53" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT"> 43,896</FONT></U></TD>
<TD WIDTH="60" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT"> 23,743</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P> Total liabilities</FONT></TD>
<TD WIDTH="53" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">395,730</FONT></U></TD>
<TD WIDTH="60" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">822,463</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3> </TD>
<TD WIDTH="53" VALIGN="TOP"> </TD>
<TD WIDTH="60" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><B><FONT SIZE=1><P>Net Assets Consisting of:</FONT></B></TD>
<TD WIDTH="53" VALIGN="TOP"> </TD>
<TD WIDTH="60" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3> </TD>
<TD WIDTH="53" VALIGN="TOP"> </TD>
<TD WIDTH="60" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P>Undistributed net investment</FONT></TD>
<TD WIDTH="53" VALIGN="TOP"> </TD>
<TD WIDTH="60" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P> income</FONT></TD>
<TD WIDTH="53" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">26,852</FONT></TD>
<TD WIDTH="60" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT"> 44,318</FONT></TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P>Accumulated net realized gain</FONT></TD>
<TD WIDTH="53" VALIGN="TOP"> </TD>
<TD WIDTH="60" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P> (loss)</FONT></TD>
<TD WIDTH="53" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">2,106,404</FONT></TD>
<TD WIDTH="60" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT"> (9,419)</FONT></TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P>Unrealized appreciation </FONT></TD>
<TD WIDTH="53" VALIGN="TOP"> </TD>
<TD WIDTH="60" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P> (depreciation) on investments</FONT></TD>
<TD WIDTH="53" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">10,111,210</FONT></TD>
<TD WIDTH="60" VALIGN="TOP"><FONT SIZE=1><P ALIGN="RIGHT">(121,122)</FONT></TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P>Paid-in capital applicable to</FONT></TD>
<TD WIDTH="53" VALIGN="TOP"> </TD>
<TD WIDTH="60" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P> 1,150,490 and 1,405,721 shares</FONT></TD>
<TD WIDTH="53" VALIGN="TOP"> </TD>
<TD WIDTH="60" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P> outstanding, respectively, of</FONT></TD>
<TD WIDTH="53" VALIGN="TOP"> </TD>
<TD WIDTH="60" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P> $.001 par value capital stock;</FONT></TD>
<TD WIDTH="53" VALIGN="TOP"> </TD>
<TD WIDTH="60" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P> 5,000,000 shares authorized in</FONT></TD>
<TD WIDTH="53" VALIGN="TOP"> </TD>
<TD WIDTH="60" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><FONT SIZE=1><P> each fund</FONT></TD>
<TD WIDTH="53" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT"> 7,257,679</FONT></U></TD>
<TD WIDTH="60" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT"> 12,766,728</FONT></U></TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3> </TD>
<TD WIDTH="53" VALIGN="TOP"> </TD>
<TD WIDTH="60" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="134" VALIGN="TOP"><FONT SIZE=1><P> Net Assets</FONT></TD>
<TD WIDTH="60" VALIGN="TOP" COLSPAN=3><U><FONT SIZE=1><P ALIGN="RIGHT">$19,502,145</FONT></U></TD>
<TD WIDTH="60" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">$12,680,505</FONT></U></TD>
</TR>
<TR> <TD WIDTH="169" VALIGN="TOP" COLSPAN=3> </TD>
<TD WIDTH="53" VALIGN="TOP"> </TD>
<TD WIDTH="60" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3><B><FONT SIZE=1><P>Net Asset Value Per Share</FONT></B></TD>
<TD WIDTH="53" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT"><strong>$16.95</strong></FONT></U></TD>
<TD WIDTH="60" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT"><strong>$9.02</strong></FONT></U></TD>
</TR>
<TR>
<TD WIDTH="169" VALIGN="TOP" COLSPAN=3> </TD>
<TD WIDTH="53" VALIGN="TOP"> </TD>
<TD WIDTH="60" VALIGN="TOP"> </TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=5 width="290"><FONT SIZE=1><P>See accompanying notes to financial statements.</FONT></TD>
</TR>
</TABLE>
<!-- Page 9 -->
<p> </p>
<TABLE BORDER="1" CELLSPACING=1 CELLPADDING=7 WIDTH=319>
<TR>
<TD width="142" VALIGN="TOP" HEIGHT=16><B><FONT SIZE=1><P>Statements of Operations</FONT></B></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR>
<TD width="218" VALIGN="TOP" COLSPAN=3 HEIGHT=16><B><FONT SIZE=1><P>For the year ended October 31, 1999</FONT></B></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"> </TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2> </TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"> </TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2 align="center"><font color="#004E61" size="1">Sheffield</font></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2 align="center"><font color="#005737" size="1">Sheffield</font></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"> </TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2 align="center"><font color="#004E61" size="1">Total</font></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2 align="center"><font color="#005737" size="1">Intermediate</font></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"> </TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2 align="center"><font color="#004E61" size="1">Return</font></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2 align="center"><font color="#005737" size="1">Term Bond</font></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"> </TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2 align="center"><font color="#004E61" size="1"><u>
Fund </u></font></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2 align="center"><font color="#005737" size="1"><u>
Fund </u></font></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><B><FONT SIZE=1><P>Investment Income</FONT></B></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2> </TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"> </TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2> </TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><FONT SIZE=1><P> Interest </FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">$ 78,183</FONT></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">$ 662,927</FONT></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><FONT SIZE=1><P> Dividends</FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2><U><FONT SIZE=1><P ALIGN="RIGHT">324,112</FONT></U></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2><U><FONT SIZE=1><P ALIGN="RIGHT"> 35,452</FONT></U></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"> </TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2> </TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><FONT SIZE=1><P> Total Income</FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2><U><FONT SIZE=1><P ALIGN="RIGHT">402,295</FONT></U></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2><U><FONT SIZE=1><P ALIGN="RIGHT">698,379</FONT></U></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"> </TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2> </TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><B><FONT SIZE=1><P>Expenses:</FONT></B></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2> </TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"> </TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2> </TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><FONT SIZE=1><P> Investment advisory fee</FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">224,180</FONT></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">122,769</FONT></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><FONT SIZE=1><P> Investment advisory fee waived</FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">---</FONT></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT"> (31,153)</FONT></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><FONT SIZE=1><P> Administration fee</FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">48,000</FONT></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">48,000</FONT></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><FONT SIZE=1><P> Administration fee waived</FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">---</FONT></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT"> (25,000)</FONT></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><FONT SIZE=1><P> Transfer agency fee</FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">10,000</FONT></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">10,000</FONT></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><FONT SIZE=1><P> Distribution expenses</FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">7,246</FONT></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">6,878</FONT></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><FONT SIZE=1><P> Custodian fees</FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">12,123</FONT></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">6,413</FONT></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><FONT SIZE=1><P> Registration and filing fees</FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">3,765</FONT></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">2,757</FONT></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><FONT SIZE=1><P> Professional fees</FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">32,238</FONT></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">16,963</FONT></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><FONT SIZE=1><P> Directors fees</FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">4,800</FONT></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">4,800</FONT></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><FONT SIZE=1><P> Printing and postage</FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">643</FONT></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">874</FONT></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><FONT SIZE=1><P> Insurance expense</FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">8,359</FONT></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">3,574</FONT></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><FONT SIZE=1><P> Other</FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2><U><FONT SIZE=1><P ALIGN="RIGHT"> 2,304</FONT></U></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2><U><FONT SIZE=1><P ALIGN="RIGHT"> 1,275</FONT></U></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"> </TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2> </TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><FONT SIZE=1><P> Total expenses</FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2><U><FONT SIZE=1><P ALIGN="RIGHT">353,658</FONT></U></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2><U><FONT SIZE=1><P ALIGN="RIGHT">168,150</FONT></U></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"> </TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2> </TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><FONT SIZE=1><P> Net investment income</FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2><U><FONT SIZE=1><P ALIGN="RIGHT"> 48,637</FONT></U></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2><U><FONT SIZE=1><P ALIGN="RIGHT">530,229</FONT></U></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"> </TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2> </TD>
</TR>
<TR>
<TD width="218" VALIGN="TOP" COLSPAN=3><B><FONT SIZE=1><P>Realized and Unrealized Gain</FONT> </B></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2> </TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><B><FONT SIZE=1><P>(Loss) on Investments:</FONT></B></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2> </TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"> </TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2> </TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><FONT SIZE=1><P>Net realized gain (loss) on</FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2> </TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><FONT SIZE=1><P> investments</FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">2,186,575</FONT></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P ALIGN="RIGHT">(9,480)</FONT></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP" HEIGHT=13><FONT SIZE=1><P>Net gain on options</FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2 HEIGHT=13><FONT SIZE=1><P ALIGN="RIGHT">95,711</FONT></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2 HEIGHT=13><FONT SIZE=1><P ALIGN="RIGHT">---</FONT></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP" HEIGHT=13><FONT SIZE=1><P>Net realized loss on futures</FONT></TD>
<TD WIDTH="59" VALIGN="TOP" COLSPAN=3 HEIGHT=13><FONT SIZE=1><P ALIGN="RIGHT">(16,926)</FONT></TD>
<TD WIDTH="60" VALIGN="TOP" HEIGHT=13><FONT SIZE=1><P ALIGN="RIGHT">---</FONT></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP" HEIGHT=13><FONT SIZE=1><P>Change in unrealized </FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2 HEIGHT=13><P></P></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2 HEIGHT=13><P></P></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP" HEIGHT=13><FONT SIZE=1><P> appreciation on investments</FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2 HEIGHT=13><U><FONT SIZE=1><P ALIGN="RIGHT">1,003,088</FONT></U></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2 HEIGHT=13><U><FONT SIZE=1><P ALIGN="RIGHT">(594,752)</FONT></U></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"> </TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2> </TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P> Net gain (loss) on investments</FONT></TD>
<TD WIDTH="58" VALIGN="TOP"><U><FONT SIZE=1><P ALIGN="RIGHT">3,268,448</FONT></U></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2><U><FONT SIZE=1><P ALIGN="RIGHT">(604,232)</FONT></U></TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"> </TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2> </TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><FONT SIZE=1><P>Net increase (decrease) in net</FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2> </TD>
</TR>
<TR>
<TD width="142" VALIGN="TOP"><FONT SIZE=1><P> assets from operations</FONT></TD>
<TD WIDTH="58" VALIGN="TOP" COLSPAN=2><U><FONT SIZE=1><P ALIGN="RIGHT"><strong>$3,317,085</strong></FONT></U></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2><U><FONT SIZE=1><P ALIGN="RIGHT"><strong>($74,003)</strong></FONT></U></TD>
</TR>
</TABLE>
<!-- Page 10 -->
<p> </p>
<TABLE BORDER="1" CELLSPACING=1 CELLPADDING=7 WIDTH=333>
<TR>
<TD VALIGN="TOP" COLSPAN=14 HEIGHT=16 width="311"><B><FONT SIZE=1><P>Statements of Changes in Net Assets</FONT></B></TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=14 HEIGHT=16 width="311"><B><FONT SIZE=1><P>For the years ended October 31, 1999 and 1998</FONT></B></TD>
</TR>
<TR>
<TD width="133" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="160" VALIGN="TOP" COLSPAN=12 align="center"> </TD>
</TR>
<TR>
<TD width="133" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="160" VALIGN="TOP" COLSPAN=12 align="center"><font color="#004E61" size="1">Sheffield Total</font></TD>
</TR>
<TR>
<TD width="133" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="160" VALIGN="TOP" COLSPAN=12 align="center"><font color="#004E61" size="1"><u>
Return Fund </u></font></TD>
</TR>
<TR>
<TD width="133" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6><FONT SIZE=1><P ALIGN="CENTER"> Year ended</FONT></TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6><FONT SIZE=1><P ALIGN="CENTER"> Year ended</FONT></TD>
</TR>
<TR>
<TD width="133" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6><FONT SIZE=1><P ALIGN="CENTER"> <U>10/31/99</U></FONT></TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6><FONT SIZE=1><P ALIGN="CENTER"> <U>10/31/98</U></FONT></TD>
</TR>
<TR>
<TD width="50%" VALIGN="TOP" COLSPAN=6><B><FONT SIZE=1><P>Increase (Decrease) in Net Assets:</FONT></B></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6> </TD>
</TR>
<TR>
<TD width="133" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P>Operations:</FONT></TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6> </TD>
</TR>
<TR>
<TD width="133" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P> Net investment income</FONT></TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6><FONT SIZE=1><P ALIGN="RIGHT">$ 48,637</FONT></TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6><FONT SIZE=1><P ALIGN="RIGHT">$ 20,075</FONT></TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=4><FONT SIZE=1><P> Net realized gain on investments</FONT></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=4><FONT SIZE=1><P ALIGN="RIGHT">2,186,575</FONT></TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6><FONT SIZE=1><P ALIGN="RIGHT">3,134,872</FONT></TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P> Net gain (loss) on options</FONT></TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6><FONT SIZE=1><P ALIGN="RIGHT">95,711</FONT></TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6><FONT SIZE=1><P ALIGN="RIGHT">(106,006)</FONT></TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P> Net realized loss on futures</FONT></TD>
<TD WIDTH="63" VALIGN="TOP" COLSPAN=7><FONT SIZE=1><P ALIGN="RIGHT">(16,926)</FONT></TD>
<TD WIDTH="79" VALIGN="TOP" COLSPAN=5><FONT SIZE=1><P ALIGN="RIGHT">(3,930)</FONT></TD>
</TR>
<TR>
<TD width="133" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P> Change in unrealized</FONT></TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6> </TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P> appreciation on investments</FONT></TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6><U><FONT SIZE=1><P ALIGN="RIGHT">1,003,088</FONT></U></TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6><U><FONT SIZE=1><P ALIGN="RIGHT">(1,520,702)</FONT></U></TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P> Increase in net assets from</FONT></TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6> </TD>
</TR>
<TR>
<TD width="133" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P> operations</FONT></TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6><U><FONT SIZE=1><P ALIGN="RIGHT">3,317,085</FONT></U></TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6><U><FONT SIZE=1><P ALIGN="RIGHT">1,524,309</FONT></U></TD>
</TR>
<TR>
<TD width="133" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6> </TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P>Dividends to shareholders from:</FONT></TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6> </TD>
</TR>
<TR>
<TD width="133" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P> Net investment income</FONT></TD>
<TD WIDTH="63" VALIGN="TOP" COLSPAN=7><FONT SIZE=1><P ALIGN="RIGHT">(41,860)</FONT></TD>
<TD WIDTH="79" VALIGN="TOP" COLSPAN=5><FONT SIZE=1><P ALIGN="RIGHT">---</FONT></TD>
</TR>
<TR>
<TD width="133" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P> Realized gains</FONT></TD>
<TD WIDTH="63" VALIGN="TOP" COLSPAN=7><U><FONT SIZE=1><P ALIGN="RIGHT">(3,150,164)</FONT></U></TD>
<TD WIDTH="79" VALIGN="TOP" COLSPAN=5><U><FONT SIZE=1><P ALIGN="RIGHT">(3,222,107)</FONT></U></TD>
</TR>
<TR>
<TD width="133" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="63" VALIGN="TOP" COLSPAN=7> </TD>
<TD WIDTH="79" VALIGN="TOP" COLSPAN=5> </TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=4><FONT SIZE=1><P>Total distributions to shareholders</FONT></TD>
<TD WIDTH="68" VALIGN="TOP" COLSPAN=6><U><FONT SIZE=1><P ALIGN="RIGHT">(3,192,024)</FONT></U></TD>
<TD WIDTH="73" VALIGN="TOP" COLSPAN=4><U><FONT SIZE=1><P ALIGN="RIGHT">(3,222,107)</FONT></U></TD>
</TR>
<TR>
<TD width="133" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6> </TD>
</TR>
<TR>
<TD width="133" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P>Capital transactions:</FONT></TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6> </TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P> Proceeds from shares issued</FONT></TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6> </TD>
</TR>
<TR>
<TD width="133" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P> through exchange</FONT></TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6><FONT SIZE=1><P ALIGN="RIGHT">1,000</FONT></TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6><FONT SIZE=1><P ALIGN="RIGHT">1,106,283</FONT></TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P> Proceeds from reinvestment of</FONT></TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6> </TD>
</TR>
<TR>
<TD width="133" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P> dividends</FONT></TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6><FONT SIZE=1><P ALIGN="RIGHT">2,611,177</FONT></TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6><FONT SIZE=1><P ALIGN="RIGHT">2,748,803</FONT></TD>
</TR>
<TR>
<TD width="133" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P> Proceeds from shares sold</FONT></TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6><FONT SIZE=1><P ALIGN="RIGHT">1,032,871</FONT></TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6><FONT SIZE=1><P ALIGN="RIGHT">3,012,819</FONT></TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=5><FONT SIZE=1><P> Cost of shares reacquired through </FONT></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=3> </TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6> </TD>
</TR>
<TR>
<TD width="133" VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P> exchange</FONT></TD>
<TD WIDTH="63" VALIGN="TOP" COLSPAN=7><FONT SIZE=1><P ALIGN="RIGHT">(3,899,334)</FONT></TD>
<TD WIDTH="79" VALIGN="TOP" COLSPAN=5><FONT SIZE=1><P ALIGN="RIGHT">(1,320,702)</FONT></TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=2 width="133"><FONT SIZE=1><P> Cost of shares reacquired</FONT></TD>
<TD WIDTH="63" VALIGN="TOP" COLSPAN=7><U><FONT SIZE=1><P ALIGN="RIGHT">(6,509,583)</FONT></U></TD>
<TD WIDTH="79" VALIGN="TOP" COLSPAN=5><U><FONT SIZE=1><P ALIGN="RIGHT">(6,334,528)</FONT></U></TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=2><FONT SIZE=1><P> Decrease in net assets from</FONT></TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6> </TD>
</TR>
<TR> <TD VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> capital share transactions</FONT></TD>
<TD WIDTH="63" VALIGN="TOP" COLSPAN=7>
<U><FONT SIZE=1><P ALIGN="RIGHT">(6,763,869)</FONT></U></TD>
<TD WIDTH="79" VALIGN="TOP" COLSPAN=5>
<U><FONT SIZE=1><P ALIGN="RIGHT">(787,325)</FONT></U></TD>
</TR>
<TR> <TD width="133" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6> </TD>
</TR>
<TR> <TD width="133" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> <B> Total decrease</B></FONT></TD>
<TD WIDTH="63" VALIGN="TOP" COLSPAN=7>
<U><FONT SIZE=1><P ALIGN="RIGHT">(6,638,808)</FONT></U></TD>
<TD WIDTH="79" VALIGN="TOP" COLSPAN=5>
<U><FONT SIZE=1><P ALIGN="RIGHT">(2,485,123)</FONT></U></TD>
</TR>
<TR> <TD width="133" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6> </TD>
</TR>
<TR> <TD width="133" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=1><P>Net Assets:</FONT></B></TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6> </TD>
</TR>
<TR> <TD width="133" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P>Beginning of period</FONT></TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6>
<U><FONT SIZE=1><P ALIGN="RIGHT">26,140,953</FONT></U></TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6>
<U><FONT SIZE=1><P ALIGN="RIGHT">28,626,076</FONT></U></TD>
</TR>
<TR> <TD width="132" VALIGN="TOP">
<FONT SIZE=1><P>End of period</FONT></TD>
<TD WIDTH="63" VALIGN="TOP" COLSPAN=7>
<U><FONT SIZE=1><P ALIGN="RIGHT"><strong>$19,502,145</strong></FONT></U></TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6>
<U><FONT SIZE=1><P ALIGN="RIGHT"><strong>$26,140,953</strong></FONT></U></TD>
</TR>
<TR> <TD width="133" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6> </TD>
</TR>
<TR> <TD VALIGN="TOP" COLSPAN=7>
<FONT SIZE=1><P>Capital transactions in number of shares:</FONT></TD>
<TD WIDTH="5" VALIGN="TOP"> </TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6> </TD>
</TR>
<TR> <TD VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> Shares issued through exchange</FONT></TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6>
<FONT SIZE=1><P ALIGN="RIGHT">60</FONT></TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6>
<FONT SIZE=1><P ALIGN="RIGHT">65,332</FONT></TD>
</TR>
<TR> <TD VALIGN="TOP" COLSPAN=4>
<FONT SIZE=1><P> Shares issued in connection with </FONT></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=4> </TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6> </TD>
</TR>
<TR> <TD VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> reinvestment of dividends</FONT></TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6>
<FONT SIZE=1><P ALIGN="RIGHT">170,665</FONT></TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6>
<FONT SIZE=1><P ALIGN="RIGHT">167,202</FONT></TD>
</TR>
<TR> <TD width="133" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> Shares sold</FONT></TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6>
<FONT SIZE=1><P ALIGN="RIGHT">59,137</FONT></TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6>
<FONT SIZE=1><P ALIGN="RIGHT">176,521</FONT></TD>
</TR>
<TR> <TD VALIGN="TOP" COLSPAN=3>
<FONT SIZE=1><P> Shares reacquired through</FONT></TD>
<TD WIDTH="61" VALIGN="TOP" COLSPAN=5> </TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6> </TD>
</TR>
<TR> <TD width="134" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=1><P> exchange</FONT></TD>
<TD WIDTH="74" VALIGN="TOP" COLSPAN=8>
<FONT SIZE=1><P ALIGN="RIGHT">(234,312)</FONT></TD>
<TD WIDTH="67" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=1><P ALIGN="RIGHT">(70,956)</FONT></TD>
</TR>
<TR> <TD width="134" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=1><P> Shares reacquired</FONT></TD>
<TD WIDTH="74" VALIGN="TOP" COLSPAN=8>
<U><FONT SIZE=1><P ALIGN="RIGHT">(387,687)</FONT></U></TD>
<TD WIDTH="67" VALIGN="TOP" COLSPAN=3>
<U><FONT SIZE=1><P ALIGN="RIGHT">(344,960)</FONT></U></TD>
</TR>
<TR> <TD VALIGN="TOP" COLSPAN=5>
<FONT SIZE=1><P> Net decrease in shares outstanding</FONT></TD>
<TD WIDTH="79" VALIGN="TOP" COLSPAN=7>
<U><FONT SIZE=1><P ALIGN="RIGHT"><strong>(392,137)</strong></FONT></U></TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=2>
<U><FONT SIZE=1><P ALIGN="RIGHT"><strong>(6,861)</strong></FONT></U></TD>
</TR>
<TR> <TD width="133" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="62" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="80" VALIGN="TOP" COLSPAN=6> </TD>
</TR>
<TR> <TD VALIGN="TOP" COLSPAN=8>
<FONT SIZE=1><P>See accompanying notes to financial statements.</FONT></TD>
<TD WIDTH="1" VALIGN="TOP" COLSPAN=5> </TD>
<TD WIDTH="62" VALIGN="TOP"> </TD>
</TR>
</TABLE>
<p> </p>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=313>
<TR> <TD WIDTH="75%" VALIGN="TOP" COLSPAN=8 HEIGHT=16>
<B><FONT SIZE=1><P>Statements of Changes in Net Assets</FONT></B></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3 HEIGHT=16><P></P></TD>
</TR>
<TR> <TD VALIGN="TOP" COLSPAN=11 HEIGHT=16>
<B><FONT SIZE=1><P>For the years ended October 31, 1999 and 1998</FONT></B></TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="46%" VALIGN="TOP" COLSPAN=9> </TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="46%" VALIGN="TOP" COLSPAN=9 align="center"><font color="#005737" size="1">Sheffield
Intermediate</font></TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="46%" VALIGN="TOP" COLSPAN=9 align="center"><font color="#005737" size="1"><u>
Term Bond Fund </u></font></TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6>
<FONT SIZE=1><P ALIGN="CENTER">Year ended</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=1><P ALIGN="CENTER">Year ended</FONT></TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6>
<U><FONT SIZE=1><P ALIGN="CENTER">10/31/99</FONT></U></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3>
<U><FONT SIZE=1><P ALIGN="CENTER">10/31/98</FONT></U></TD>
</TR>
<TR> <TD WIDTH="58%" VALIGN="TOP" COLSPAN=5>
<B><FONT SIZE=1><P>Increase (Decrease) in Net Assets:</FONT></B></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=3> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3> </TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P>Operations:</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3> </TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> Net investment income</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6>
<FONT SIZE=1><P ALIGN="RIGHT">$ 530,229</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=1><P ALIGN="RIGHT">$ 357,547</FONT></TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> Net realized gain (loss) on</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3> </TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> investments</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=7>
<FONT SIZE=1><P ALIGN="RIGHT">(9,480)</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P ALIGN="RIGHT">149,564</FONT></TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> Change in unrealized appreciation</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3> </TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> (depreciation) on investments</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=7>
<U><FONT SIZE=1><P ALIGN="RIGHT">(594,752)</FONT></U></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=2>
<U><FONT SIZE=1><P ALIGN="RIGHT">(65,990)</FONT></U></TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> Increase (decrease) in net assets</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3> </TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> from operations</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=7>
<U><FONT SIZE=1><P ALIGN="RIGHT">(74,003)</FONT></U></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=2>
<U><FONT SIZE=1><P ALIGN="RIGHT">441,121</FONT></U></TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3> </TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3> </TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P>Dividends to shareholders from:</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3> </TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> Net investment income</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=7>
<FONT SIZE=1><P ALIGN="RIGHT">(524,355)</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P ALIGN="RIGHT">(346,210)</FONT></TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> Realized gains</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=7>
<U><FONT SIZE=1><P ALIGN="RIGHT">(149,512)</FONT></U></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=2>
<U><FONT SIZE=1><P ALIGN="RIGHT">(171,108)</FONT></U></TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=7> </TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=2> </TD>
</TR>
<TR> <TD WIDTH="56%" VALIGN="TOP" COLSPAN=4>
<FONT SIZE=1><P>Total distributions to shareholders</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=6>
<U><FONT SIZE=1><P ALIGN="RIGHT">(673,867)</FONT></U></TD>
<TD WIDTH="23%" VALIGN="TOP">
<U><FONT SIZE=1><P ALIGN="RIGHT">(517,318)</FONT></U></TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3> </TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P>Capital transactions:</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3> </TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> Proceeds from shares issued</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3> </TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> through exchange</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6>
<FONT SIZE=1><P ALIGN="RIGHT">3,899,334</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=1><P ALIGN="RIGHT">1,320,702</FONT></TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> Proceeds from reinvestment of</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3> </TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> dividends</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6>
<FONT SIZE=1><P ALIGN="RIGHT">673,867</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=1><P ALIGN="RIGHT">517,318</FONT></TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> Proceeds from shares sold</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6>
<FONT SIZE=1><P ALIGN="RIGHT">3,055,570</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=1><P ALIGN="RIGHT">2,186,219</FONT></TD>
</TR>
<TR> <TD WIDTH="58%" VALIGN="TOP" COLSPAN=5>
<FONT SIZE=1><P> Cost of shares reacquired through </FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=3> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3> </TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> exchange</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=7>
<FONT SIZE=1><P ALIGN="RIGHT">(1,000)</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P ALIGN="RIGHT">(1,106,283)</FONT></TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> Cost of shares reacquired</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=7>
<U><FONT SIZE=1><P ALIGN="RIGHT">(2,016,236)</FONT></U></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=2>
<U><FONT SIZE=1><P ALIGN="RIGHT">(2,801,254)</FONT></U></TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> Increase in net assets from</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3> </TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> capital share transactions</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6>
<U><FONT SIZE=1><P ALIGN="RIGHT">5,611,535</FONT></U></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3>
<U><FONT SIZE=1><P ALIGN="RIGHT">116,702</FONT></U></TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=3> </TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=4> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=4> </TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> <B> Total increase</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6>
<U><FONT SIZE=1><P ALIGN="RIGHT">4,863,665</FONT></U></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3>
<U><FONT SIZE=1><P ALIGN="RIGHT">40,505</FONT></U></TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3> </TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=1><P>Net Assets:</FONT></B></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3> </TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P>Beginning of period</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6>
<U><FONT SIZE=1><P ALIGN="RIGHT">7,816,840</FONT></U></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3>
<U><FONT SIZE=1><P ALIGN="RIGHT">7,776,335</FONT></U></TD>
</TR>
<TR> <TD WIDTH="52%" VALIGN="TOP">
<FONT SIZE=1><P>End of period</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=7>
<U><FONT SIZE=1><P ALIGN="RIGHT"><strong>$12,680,505</strong></FONT></U></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3>
<U><FONT SIZE=1><P ALIGN="RIGHT"><strong>$7,816,840</strong></FONT></U></TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3> </TD>
</TR>
<TR> <TD WIDTH="67%" VALIGN="TOP" COLSPAN=6>
<FONT SIZE=1><P>Capital transactions in number of shares:</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP"> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=4> </TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> Shares issued through exchange</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6>
<FONT SIZE=1><P ALIGN="RIGHT">411,348</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=1><P ALIGN="RIGHT">137,075</FONT></TD>
</TR>
<TR> <TD WIDTH="58%" VALIGN="TOP" COLSPAN=5>
<FONT SIZE=1><P> Shares issued in connection with </FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=3> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3> </TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> reinvestment of dividends</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6>
<FONT SIZE=1><P ALIGN="RIGHT">72,353</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=1><P ALIGN="RIGHT">54,282</FONT></TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> Shares sold</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6>
<FONT SIZE=1><P ALIGN="RIGHT">321,332</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=1><P ALIGN="RIGHT">227,176</FONT></TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> Shares reacquired through</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3> </TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> exchange</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=7>
<FONT SIZE=1><P ALIGN="RIGHT">(111)</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P ALIGN="RIGHT">(115,101)</FONT></TD>
</TR>
<TR> <TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P> Shares reacquired</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=7>
<U><FONT SIZE=1><P ALIGN="RIGHT">(214,945)</FONT></U></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=2>
<U><FONT SIZE=1><P ALIGN="RIGHT">(291,246)</FONT></U></TD>
</TR>
<TR> <TD WIDTH="58%" VALIGN="TOP" COLSPAN=5>
<FONT SIZE=1><P> Net decrease in shares outstanding</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=3>
<U><FONT SIZE=1><P ALIGN="RIGHT"><strong>589,977</strong></FONT></U></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=3>
<U><FONT SIZE=1><P ALIGN="RIGHT"><strong>12,186</strong></FONT></U></TD>
</TR>
</TABLE>
<!-- Page 11 -->
<p> </p>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=604>
<TR> <TD VALIGN="TOP" COLSPAN=6 HEIGHT=18>
<P>Financial Highlights</TD>
</TR>
<TR> <TD VALIGN="TOP" COLSPAN=6 HEIGHT=16><P></P></TD>
</TR>
<TR> <TD VALIGN="TOP" COLSPAN=6 HEIGHT=16>
<FONT SIZE=1><P>For a share outstanding throughout the period.</FONT></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="56%" VALIGN="TOP" COLSPAN=5 HEIGHT=16><P></P></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="56%" VALIGN="TOP" COLSPAN=5 HEIGHT=16><P align="center"><u><font size="1" color="#004E61">Sheffield
Total Return Fund</font></u></P></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="56%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<FONT SIZE=1><P ALIGN="CENTER">Year ended October 31,</FONT></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P> 1999</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P> 1998</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P> 1997</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P> 1996 </FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P> 1995</FONT></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P>Net asset value, beginning of period</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>$16.95</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>$18.47</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>$15.02</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>$12.86</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>$11.53</FONT></U></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P>Income from investment operations:</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P> Net investment income</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>.04</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>.01</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>.03</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>.09</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>.11</FONT></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P> Net gains on securities (both realized</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P> and unrealized)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>2.06</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>.57</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>4.38</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>2.67</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>1.68</FONT></U></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P>Total from investment operations</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>2.10</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>.58</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>4.41</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>2.76</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>1.79</FONT></U></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P>Less Distributions:</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P> Dividends (from net investment income)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>(.03)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P> ---</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>(.09)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>(.11)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>(.12)</FONT></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P> Distributions (from realized gains)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>(2.07)</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>(2.10)</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>(.87)</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>(.49)</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>(.34)</FONT></U></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P>Total distributions</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>(2.10)</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>(2.10)</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>(.96)</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>(.60)</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>(.46)</FONT></U></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P>Net Asset Value, end of period</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P><strong>$16.95</strong></FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P><strong>$16.95</strong></FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P><strong>$18.47</strong></FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P><strong>$15.02</strong></FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P><strong>$12.86</strong></FONT></U></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P>Total return</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>13.71%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>3.50%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>30.79%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>22.36%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>16.33%</FONT></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P>Ratios/supplemental data:</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P>Net assets, end of period (000's)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P> $19,502</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P> $26,141</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>$28,626</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P> $25,257</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P> $21,565</FONT></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P>Ratio of expenses to average net assets</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>1.58%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>1.45%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P> 1.39%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>1.44%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>1.60%</FONT></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P>Ratio of net investment income to average net assets</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>.22%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>.07%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>.18%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>.66%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>.90%</FONT></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P>Portfolio turnover rate</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>36.48%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>49.62%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>42.09%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>57.17%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>55.16%</FONT></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR> <TD VALIGN="TOP" COLSPAN=6 HEIGHT=16><P></P></TD>
</TR>
<TR> <TD VALIGN="TOP" COLSPAN=6 HEIGHT=16>
<FONT SIZE=1><P>See accompanying notes to financial statements.</FONT></TD>
</TR>
<TR> <TD VALIGN="TOP" COLSPAN=6 HEIGHT=16><P></P></TD>
</TR>
</TABLE>
<!-- Page 12 -->
<p> </p>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=604>
<TR> <TD VALIGN="TOP" COLSPAN=6 HEIGHT=18>
<FONT SIZE=2>
</FONT><P>Financial Highlights</TD>
</TR>
<TR> <TD VALIGN="TOP" COLSPAN=6 HEIGHT=16><P></P></TD>
</TR>
<TR> <TD VALIGN="TOP" COLSPAN=6 HEIGHT=16>
<FONT SIZE=1><P>For a share outstanding throughout the period.</FONT></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="56%" VALIGN="TOP" COLSPAN=5 HEIGHT=16><P></P></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="56%" VALIGN="TOP" COLSPAN=5 HEIGHT=16><P align="center"><u><font size="1" color="#005737">Sheffield
Intermediate Term Bond Fund</font></u></P></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="56%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<FONT SIZE=1><P ALIGN="CENTER">Year ended October 31,</FONT></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P> 1999</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P> 1998</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P> 1997</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P> 1996</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P> 1995</FONT></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P>Net asset value, beginning of period</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>$9.58</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>$9.68</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>$9.70</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>$9.59</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>$9.06</FONT></U></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P>Income from investment operations:</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P> Net investment income</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>.41</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>.44</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>.45</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>.46</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>.53</FONT></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P> Net gains (losses) on securities (both realized</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P> and unrealized)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>(.42)</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>.10</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>.37</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>.24</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>.60</FONT></U></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P>Total from investment operations</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>(.01)</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>.54</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>.82</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>.70</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>1.13</FONT></U></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P>Less Distributions:</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P> Dividends (from net investment income)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>(.40)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>(.43)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>(.47)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>(.47)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>(.57)</FONT></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P> Distributions (from realized gains)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>(.15)</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>(.21)</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>(.37)</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>(.12)</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>(.03)</FONT></U></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P>Total distributions</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>(.55)</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>(.64)</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>(.84)</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>(.59)</FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P>(.60)</FONT></U></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P>Net Asset Value, end of period</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P><strong>$9.02</strong></FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P><strong>$9.58</strong></FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P><strong>$9.68</strong></FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P><strong>$9.70</strong></FONT></U></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<U><FONT SIZE=1><P><strong>$9.59</strong></FONT></U></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P>Total return</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>(.22%)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>5.63%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>8.97%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>7.64%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>12.89%</FONT></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P>Ratios/supplemental data:</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right"><P></P></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P>Net assets, end of period (000's)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P> $12,681</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P> $7,817</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P> $7,776</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P> $6,860</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P> $7,734</FONT></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P>Ratio of expenses to average net assets</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>1.37%+</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>1.59%+</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>1.69%+</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>1.86%+</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>1.78%+</FONT></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P>Ratio of net investment income to average net assets</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>4.32%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>4.59%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>4.87%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>4.87%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>5.61%</FONT></TD>
</TR>
<TR> <TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=1><P>Portfolio turnover rate</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>23.75%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>35.31%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>46.54%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>33.65%</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16 align="right">
<FONT SIZE=1><P>34.99%</FONT></TD>
</TR>
<TR>
<TD WIDTH="44%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR> <TD VALIGN="TOP" COLSPAN=6 HEIGHT=16><P></P></TD>
</TR>
<TR> <TD VALIGN="TOP" COLSPAN=6 HEIGHT=16>
<FONT SIZE=1><P>+ Without the waiver of advisory and administration fees, the ratios of expenses to average net assets for the Intermediate Term</FONT></TD>
</TR>
<TR> <TD VALIGN="TOP" COLSPAN=6 HEIGHT=16>
<FONT SIZE=1><P>Bond Fund would have been 1.83%, 2.16%, 2.28%, 2.47%, and 2.03% for the years ending 1999, 1998, 1997, 1996, and 1995,</FONT></TD>
</TR>
<TR> <TD VALIGN="TOP" COLSPAN=6 HEIGHT=16>
<FONT SIZE=1><P>respectively.</FONT></TD>
</TR>
<TR> <TD VALIGN="TOP" COLSPAN=6 HEIGHT=16><P></P></TD>
</TR>
<TR> <TD VALIGN="TOP" COLSPAN=6 HEIGHT=16>
<FONT SIZE=1><P>See accompanying notes to financial statements.</FONT></TD>
</TR>
<TR> <TD VALIGN="TOP" COLSPAN=6 HEIGHT=16><P></P></TD>
</TR>
</TABLE>
<!-- Page 13 -->
<P ALIGN="JUSTIFY">
<P ALIGN="JUSTIFY">
<P>Notes to Financial Statements
<hr>
<P ALIGN="JUSTIFY"><B>Note 1. Organization and Significant
Accounting Policies.</B> The Sheffield Funds, Inc. (SFI) is
registered under the Investment Company Act of 1940 as an
open-end diversified management investment company.
SFI consists of two separate funds, the Sheffield
Total Return Fund (the "Total Return Fund") and the
Sheffield Intermediate Term Bond Fund (the "Bond Fund"),
each of which represents a separate portfolio of
investments (collectively, "the Funds"). SFI commenced
operations on April 2, 1990. The following is a summary
of significant accounting policies followed by SFI:
<P ALIGN="JUSTIFY">A.<I> Security
Valuation</I> - Equity securities listed or traded on a national securities exchange are
valued at the last sale price on the day of valuation or,
if no sale is reported, at the latest bid price.
Bonds and other fixed income securities are valued on
the basis of prices furnished by an independent
pricing service. Convertible bonds are valued at the
mean of bid and asked prices if available, or if
not available, on the basis of prices furnished by
an independent pricing service. Short-term
obligations with maturities of sixty days or less are valued
at amortized cost, which approximates market.
<P ALIGN="JUSTIFY">B.<I> Security Transactions and Related
Investment Income</I> - Security transactions are accounted
for on the trade date and dividend income is
recorded on the ex-dividend date. Interest income is
recorded on the accrual basis and includes the
amortization of discounts and premiums on the purchase
of debt securities. Realized gains and losses from investment transactions and
unrealized appreciation and depreciation of investments
are reported on an identified cost basis.
<P ALIGN="JUSTIFY">C.<I> Futures Contracts</I> - The Funds may
purchase financial futures contracts in order to invest
excess cash or to provide liquidity for redemption requests. The Funds may sell financial futures as a means
to reduce market risk. Upon entering into a
futures contract, the Funds are required to deposit with
a broker an amount ("initial margin") equal to a
certain percentage of the purchase price indicated in
the futures contract. Subsequent payments
("variation margin") are made or received by the
Funds dependent on the daily fluctuations in the value
of the unrealized gains and losses on the
futures contracts. If the Funds enter into a
closing transaction, the Funds will realize, for
book purposes, a gain or loss equal to the
difference between the value of the futures contract to
sell and the futures contract to buy. The Funds may
be subject to risk upon entering into futures
contracts resulting from the imperfect correlation of
prices between the futures and securities markets.
At October 31, 1999, there were no open futures contracts.
<P ALIGN="JUSTIFY">D<I>. Options Written &
Purchased</I> - When the Funds write an option, an amount equal to the
premium received by the Funds is recorded as a liability
and is subsequently adjusted to the current market
value of the option written. A covered call option
entitles the holder to the right to buy the underlying
security which the Funds own at any time during the
option period at the stated exercise price. A put
option entitles the holder to the right to sell the
underlying security to the Funds at any time during the
option period at the stated exercise price.
Premiums received from writing options which
expire unexercised are treated by the Funds on the expiration date as realized gains from
investments. The difference between the premium and
the amount paid on effecting a closing purchase transaction, including brokerage commissions,
is also treated as a realized gain, or if the premium
is less than the amount paid for the closing
purchase transaction, as a realized loss. If a call option is exercised, the premium is added to the proceeds
from the sale of the underlying security or currency
in determining whether the Funds have realized a
gain or loss. If a put option is exercised, the
premium reduces the cost basis of the securities
purchased by the Funds. The Funds as writer of an option
bear the market risk of an unfavorable change in the
price of the security underlying the written option.
<!-- Page 14 begins at "exercised, the premium is added to the proceeds from the sale" -->
<P ALIGN="JUSTIFY"> The Funds may purchase put options on
securities in order to protect the securities against a decline
in market value. A purchased put option entitles
the Funds to sell the underlying security at the
option exercise price at any time during the option
period. By purchasing a put option, the Funds are able
to protect the unrealized gain in the
appreciated underlying security without actually selling
the security. Any losses realized by the Fund upon expiration of the put options are limited to
the premiums paid for the purchase of such options
plus any transaction costs.
<P ALIGN="JUSTIFY"> The Funds may also buy call options on
securities which they intend to purchase in order to limit
the risk of a substantial increase in the market price
of such securities. A call option entitles the Funds
to the right to buy the underlying securities from
the option writer at a stated exercise price. Any
losses realized by the Funds upon expiration of the
call options are limited to the premiums paid for
the purchase of such options, plus any transaction costs.
<P ALIGN="JUSTIFY">E.<I> Federal Income
Taxes</I> - No provision for federal income taxes is required since each fund intends
to continue to qualify as a regulated investment company and make distributions of
investment income and net realized capital gain, if any, to
relieve it from all federal income taxes.
<P
ALIGN="JUSTIFY">At October 31, 1999, the aggregate cost
of securities for federal income tax purposes for
the Total Return Fund was $9,421,680 and net
unrealized appreciation aggregated $10,130,115 of
which $10,188,014 related to appreciated securities
and $57,899 related to depreciated securities. Net depreciation on options outstanding amounted
to $18,905. The aggregate tax cost of securities
for the Bond Fund was $12,655,322 and net
unrealized depreciation aggregated $121,122, of
which $324,228 related to appreciated securities
and $445,350 related to depreciated securities.
<P ALIGN="JUSTIFY">F.<I> Dividends and Distributions to
Shareholders</I> - Dividends and distributions are recorded by
the Funds on the ex-dividend date. The primary
reason for the difference between net investment
income and realized gains and the related
distributions relates to the regulatory timing and calculation
of distributions.
<P ALIGN="JUSTIFY">G.<I> Use of
Estimates</I> - The preparation of financial statements in conformity with generally
accepted accounting principles requires management to
make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of
the financial statements and the reported amounts
of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
<P ALIGN="JUSTIFY"><B>Note 2. Investment Advisory and Other
Agreements.</B> Sheffield Investment Management, Inc. (SIMI)
serves as the investment adviser, transfer agent
and administrator for SFI. Pursuant to the terms of the
terms of the Investment Advisory Agreement between
SIMI and SFI, SIMI receives an investment advisory fee
from each fund. This fee is accrued daily and paid monthly.
<P
ALIGN="JUSTIFY">The fee is based on an annual rate of 1% of the
first $50 million of each fund's net assets; .75% of the
next $50 million of net assets and .6% of net assets in
excess of $100 million. Beginning April 1, 1993, SIMI
has been waiving advisory fees for the Bond Fund to
a level of .75% of net assets. Total advisory fees
waived during the year ended October 31, 1999, amounted
to approximately $31,200.
<P ALIGN="JUSTIFY">SFI has entered into an Administrative Agreement
with SIMI pursuant to which SIMI provides various administrative services required by the Funds. For
its services, SIMI receives a fee from each fund at
the annual rate of the greater of .15% of each
fund's average daily net assets or the actual cost to SIMI
to provide such services up to $48,000 per fund.
During the year ended October 31, 1999, SIMI
waived administrative fees to the Bond Fund amounting
to $25,000.
<P ALIGN="JUSTIFY">In accordance with a Transfer Agency Agreement
with SFI and SIMI, various services are provided to
the stockholders of the Funds. These services include,
in part, the processing of purchase and redemption requests, transfer and exchange requests,
distributions and general stockholder inquiries. For its services
SIMI receives from each fund a monthly fee at an
annual rate of the greater of $10,000 per fund or $15
per stockholder account.
<P ALIGN="JUSTIFY">Alpha-Line Investments, Inc. (the Underwriter),
an affiliate of SIMI, is the principal and underwriter
for SFI pursuant to a Distribution Agreement. Each
fund has agreed to pay the Underwriter, pursuant to a
Rule 12b-1 Plan of Distribution, such amounts as
necessary in order to reimburse distribution, maintenance,
service cost, and overhead with respect to marketing
the shares of each fund. The total allowable amount of
fund reimbursement to the Underwriter is limited
to .0625% per quarter of each fund's net asset value.
<P
ALIGN="JUSTIFY"><B>Note 3. Securities
Transactions.</B> For the year ended October 31, 1999, purchases and sales proceeds
of securities, other than short-term and U.S.
Government Securities, for each of the Funds were as follows:
<P>
<P style="margin-top: 0"> <FONT COLOR="#004e61">
Total
Return </FONT> <FONT
COLOR="#005737"> </FONT>
<FONT
COLOR="#005737">Intermediate Term</FONT>
<P style="margin-top: 0"> <FONT COLOR="#004e61"><u>
Fund </u></FONT><FONT
COLOR="#005737"><u>
</u> </FONT><font color="#004e61"> </font><font color="#005737"><u>
Bond Fund </u></font><P style="margin-top: 0"> <u> Purchases </u> <u>
Sales </u> <u>
Purchases </u> <u>
Sales </u>
<P style="margin-top: 0"> $8,091,171 $15,059,606
$7,838,652 $2,761,777
<P style="margin-top: 0">
<P ALIGN="JUSTIFY" style="margin-top: 0">For the year ended October 31, 1999, the Total
Return Fund had the following transactions in written
call options:
<P style="line-height: 100%; margin-top: 0">
<P style="line-height: 100%; margin-top: 0">
Number of Premiums<P style="line-height: 100%; margin-top: 0">
<U>Contracts</U> <u>Received</u>
<P ALIGN="JUSTIFY" style="margin-top: 0">Options outstanding at
<P ALIGN="JUSTIFY" style="margin-top: 0"> October 31, 1998
0
$0
<P ALIGN="JUSTIFY" style="margin-top: 0">Options written
282
92,105<P ALIGN="JUSTIFY" style="margin-top: 0">Options closed
0
0<P ALIGN="JUSTIFY" style="margin-top: 0">Options expired
(232)
(59,760)<P ALIGN="JUSTIFY" style="margin-top: 0">Options exercised
<U>0</U>
<U>0</U>
<P ALIGN="JUSTIFY" style="margin-top: 0">Options outstanding at
<P ALIGN="JUSTIFY" style="margin-top: 0"> October 31, 1999 <strong><u>
50</u></strong>
<strong><u>$32,345</u></strong>
<P ALIGN="JUSTIFY">
<P ALIGN="JUSTIFY"><B>Note 4. Related Party
Stockholders.</B> At October 31, 1999, the Sheffield Investment Management, Inc.
Profit Sharing Plan owned 15,669 shares of the Bond
Fund and 9,991 shares of the Total Return Fund.
The President of SIMI and related family members
owned 2,623 shares of the Total Return Fund.
<P ALIGN="JUSTIFY"><b>Note 5. Capital Loss Carryover.</b> At October 31, 1999,
capital loss carryovers available to offset possible future gains of the Bond
Fund were $9,480, expiring in 2007.
<P>
<P>
<!-- Page 16 -->
<P style="margin-top: 0"><B>Report of Independent Accountants</B>
<P style="margin-top: 0">To the Shareholders and Board of Directors of
<P style="margin-top: 0">The Sheffield Funds, Inc.
<hr>
<P ALIGN="JUSTIFY">In our opinion, the accompanying statements of
assets and liabilities, including the portfolio of
investments, and the related statements
of operations and of changes in net assets, and the
financial highlights present fairly, in all material respects,
the financial position of the Sheffield Total Return Fund and the
Sheffield Intermediate Term Bond Fund of The Sheffield
Funds, Inc. (the "Fund"), at October 31, 1999,
the results of their operations for the year then
ended, the changes in each of their net assets for each of the two years
in the period then ended, and the financial highlights
for each of the five years in the period then ended,
in conformity with generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as
"financial statements") are the responsibility of the
Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits of these financial statements
in accordance with generally accepted auditing
standards which require that we plan and perform the audit
to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An
audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles
used and significant estimates made by management,
and evaluating the overall financial statement presentation.
We believe that our audits, which included
confirmation of securities owned at October 31, 1999
by correspondence with the custodian and brokers, provide a reasonable basis for the opinion
expressed above.
<P>
<P style="margin-top: 0">PricewaterhouseCoopers LLP
<P style="margin-top: 0">Atlanta, Georgia
<P style="margin-top: 0">December 7, 1999
<P>
<P>
<P>
<!-- Page 17 -->
<P style="margin-top: 0"><FONT
COLOR="#004e61">The Sheffield Funds, Inc.</FONT>
<P style="margin-top: 0">900 Circle 75 Parkway
<P style="margin-top: 0">Suite 750
<P style="margin-top: 0">Atlanta, Georgia 30339-3082
<P style="margin-top: 0">(770) 953-1597
<P>
<P>
<P style="margin-top: 0"><B><I>Legal Counsel</I></B>
<P style="margin-top: 0">Kilpatrick Stockton
<P style="margin-top: 0">Atlanta, Georgia 30309
<P>
<P>
<P style="margin-top: 0"><B><I>Custodian</I></B>
<P style="margin-top: 0">UMB Bank, n.a.
<P style="margin-top: 0">Kansas City, Missouri 64141
<P style="margin-top: 0">
<P>
<P style="margin-top: 0"><B><I>Independent Public Accountants</I></B>
<P style="margin-top: 0">PricewaterhouseCoopers LLP
<P style="margin-top: 0">Atlanta, Georgia 30309
<P ALIGN="JUSTIFY">
<P ALIGN="JUSTIFY">
<P ALIGN="JUSTIFY">This report is authorized for distribution only
to shareholders and to others who have received a copy of the prospectus of The Sheffield Funds, Inc.
</BODY>
