Securities Act of 1933
File No. 33-32864
Investment Company Act of 1940
File No. 811-5887
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Pre-effective Amendment No. ( )
Post-effective Amendment No. 8 ( x )
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 11 ( x )
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
(Exact name of Registrant as Specified in Charter)
6230 Claremont Avenue, Oakland, CA 94618
(Address of Principal Executive Office) (Zip code)
Registrant's Telephone Number, Including Area Code:
(510) 654-5383
Jim Alexander, Program Coordinator
Alameda-Contra Costa Medical Association
Collective Investment Trust for Retirement Plans
6230 Claremont Avenue
Oakland, CA 94618
(Name and Address of Agent for Service)
Copies to:
Phillip J. Goldberg, Esq.
Hassard Bonnington
Two Embarcadero Center, Suite 1800
San Francisco, CA 94111-3993
Approximate Date of Proposed Public Offering: As soon as
practicable after this Amendment becomes effective.
It is proposed that this filing will become effective (check
appropriate box)
( ) Immediately upon filing pursuant to paragraph (b)
( X) on April 30, 1996 pursuant to paragraph (b)
( ) 60 days after filing pursuant to paragraph (a) (1)
( ) on April 30, 1996 pursuant to paragraph (a) (1)
( ) 75 days after filing pursuant to paragraph (a) (2)
( ) on (date) pursuant to paragraph (a) (2) of rule 485.
If appropriate, check the following box:
( ) this post-effective amendment designates a new effective
date for a previously filed post-effective amendment.
Registrant has elected to register an indefinite number of units
pursuant to Regulation 24f-2 of the Investment Company Act of
1940 and filed a Rule 24f-2 Notice for its most recent fiscal
year on February 16, 1996.
DATED APRIL 30, 1996
Alameda-Contra Costa Medical Association Collective Investment
Trust For Retirement Plans
The Alameda-Contra Costa Medical Association Collective
Investment Trust for Retirement Plans is registered with the
Securities and Exchange Commission as an open-end diversified
management investment company. Such registration does not
involve supervision of management or investment practices or
policies of the Trust. Wells Fargo Bank, National Association.
is the Custodial Trustee of the Trust. The Alameda-Contra Costa
Medical Association established, and provides administrative
services to, the Trust. Investment managers act as investment
advisers to the Trust.
The Trust currently offers seven investment portfolios, each with
a different investment objective, for the investment of
retirement assets held in Retirement Plans. The assets of a
Retirement Plan may be invested in one or more of the Portfolios
and may be transferred among the Portfolios on any Valuation
Date.
The International Value Equity Portfolio seeks to increase
retirement assets through investing primarily in the American
Depository Receipts of companies incorporated or organized
outside the United States.
The Growth Equity Portfolio seeks to increase retirement assets
through equity securities which provide long term growth of
capital. The realization of current income is not a
consideration.
The Value Equity Portfolio seeks to increase retirement assets
primarily through equity securities which provide long term
growth of capital. Current income is a secondary objective.
The Balanced Portfolio seeks to increase retirement assets
through a balance of current income and long term growth of
capital.
The Long-Intermediate Fixed Income Portfolio seeks to obtain
increased income for retirement assets by investing in quality
long and intermediate term fixed income securities, including
corporate and government fixed income obligations and mortgage-
backed securities.
The Short-Intermediate Fixed Income Portfolio seeks to obtain
interest income for retirement assets by investing in quality
short and intermediate term fixed income securities, including
corporate and government fixed income obligations and mortgage-
backed securities.
The Money Market Portfolio seeks to increase retirement assets by
providing a high level of current income with equal emphasis on
stability and liquidity of principal, although a stable or
constant net asset value may not be maintained.
This Prospectus sets forth concisely the information about the
Trust that a prospective investor should know before investing.
Please read and retain this Prospectus for future reference.
Additional information about the Trust has been filed with the
Securities and Exchange Commission in a Statement of Additional
Information dated April 30, 1996. The Statement of Additional
Information is incorporated by reference into this Prospectus. A
copy of the Statement of Additional Information can be obtained
without charge by writing to the Alameda-Contra Costa Medical
Association, 6230 Claremont Avenue, Oakland, CA 94618, or by
calling the Association at (510) 654-5383.
Units of beneficial interest in the Portfolios are sold without a
sales charge and are available only to Retirement Plans.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
The date of this Prospectus is April 30, 1996
PAGE
<PAGE>
TABLE OF CONTENTS
SUMMARY 5
THE TRUST 12
HOW TO INVEST IN THE TRUST 13
Eligibility for Admission 13
Establishing an IRA and/or SEP 14
Establishing a Qualified Plan 14
Investing in the Trust 14
INVESTMENT OBJECTIVES AND POLICIES 15
The International Value Equity Portfolio 16
The Growth Equity Portfolio 18
The Value Equity Portfolio 19
The Balanced Portfolio 21
The Long-Intermediate Fixed Income Portfolio 22
The Short-Intermediate Fixed Income Portfolio 25
The Money Market Portfolio 27
Special Risk Considerations 29
Dividends and Distributions 30
INVESTMENT RESTRICTIONS 30
REDEMPTIONS 31
EXCHANGES 32
VALUATION OF UNITS 33
PERFORMANCE 33
INVESTMENT MANAGEMENT AND ADMINISTRATION ARRANGEMENTS 34
The Supervisory Committee 34
The Custodial Trustee 34
The Administrator 35
The Investment Management Agreements 35
Expenses of the Trust 37
INCOME TAX INFORMATION 38
Tax Treatment of the Trust 38
Tax Treatment of Participating Trusts 38
IRAs 39
SEPs 40
Qualified Plans 40
OTHER INFORMATION 42
Description of the Units and Voting Rights 42
Termination of the Trust 43
Counsel and Independent Accountants 43
Additional Information 44
APPENDIX 1
No person has been authorized in connection with the offering
made hereby to give any information or to make any
representations other than those contained in this Prospectus and
the Statement of Additional Information, and, if given or made,
such representations must not be relied upon as having been
authorized. This Prospectus does not constitute an offer to
sell, or a solicitation of an offer to buy, any securities other
than the securities to which it relates, or an offer to or a
solicitation of any person in any jurisdiction in which such
offer or solicitation would be unlawful.
SUMMARY
The Trust
The Trust is a collective investment trust which was established
by the Alameda-Contra Costa Medical Association. It is
registered with the Securities and Exchange Commission as an
open-end diversified management investment company. Such regis-
tration does not involve supervision of management or investment
practices or policies of the Trust. Wells Fargo Bank, National
Association, is the Custodial Trustee of the Trust. See "The
Trust." Units of the Trust are available to Retirement Plans.
See "How to Invest in the Trust."
Investment Objectives and Policies
The Trust currently offers seven investment Portfolios, each with
a different investment objective, for the investment of
retirement assets held in Retirement Plans. The assets of a
Retirement Plan may be invested in one or more of the Portfolios
and may be transferred among the Portfolios on any Valuation
Date. See "Investment Objectives and Policies" and "Exchanges."
The International Value Equity Portfolio seeks to increase
retirement assets through investing primarily in the American
Depository Receipts of companies incorporated or organized
outside the United States.
The Growth Equity Portfolio seeks to increase retirement assets
through equity securities which provide long term growth of
capital. The realization of current income is not a
consideration.
The Value Equity Portfolio seeks to increase retirement assets
primarily through equity securities which provide long term
growth of capital. Current income is a secondary objective.
The Balanced Portfolio seeks to increase retirement assets
through a balance of current income and long term growth of
capital.
The Long-Intermediate Fixed Income Portfolio seeks to obtain
increased income for retirement assets by investing in quality
long and intermediate term fixed income securities, including
corporate and government fixed income obligations and mortgage-
related securities.
The Short-Intermediate Fixed Income Portfolio seeks to obtain
interest income for retirement assets by investing in quality
short and intermediate term fixed income securities, including
corporate and government fixed income obligations and mortgage-
related securities.
The Money Market Portfolio seeks to increase retirement assets by
providing a high level of current income with equal emphasis on
stability and liquidity of principal.
The net asset value per Unit of the International Value Equity
Portfolio, the Growth Equity Portfolio, the Value Equity
Portfolio, the Balanced Portfolio, the Long-Intermediate Fixed
Income Portfolio and the Short-Intermediate Fixed Income
Portfolio will fluctuate, while the net asset value of the Money
Market Portfolio is not expected to significantly fluctuate in
price from its principal value.
Special Risk Considerations
Monies invested in the Portfolios are subject to certain risks.
Since each of the Portfolios will invest in different types of
investments, the risks of participating in the Trust will vary
depending on the Portfolio or Portfolios chosen. Before
selecting a Portfolio or Portfolios for investment of Retirement
Plans, a participant should assess the risks associated with the
types of investments made by each Portfolio. See "Investment
Objectives and Policies."
There is no assurance that the Portfolios will achieve their
investment objectives. The value of interest bearing securities
held in the Portfolios will generally vary inversely with changes
in prevailing interest rates, while the value of equity-based
securities held in the Portfolios will fluctuate as the stock
market fluctuates. The value of all securities held in the
Portfolios will vary due to economic conditions and other market
factors. The Money Market Portfolio, with its relatively stable
Unit value, will not offer the same potential for long term
appreciation as the other Portfolios. The Portfolio will not
attempt to maintain a stable or constant net asset value.
Administration of the Trust
Wells Fargo Bank, National Association, is the Custodial Trustee
of the Trust. The Alameda-Contra Costa Medical Association
provides administrative services to the Trust. Lazard Freres &
Company, The Burridge Group, Inc., Towneley Capital Management,
Inc., Guardian Investment Management and Scudder, Stevens & Clark
serve as investment advisers to specified Portfolios of the
Trust. See "Investment Management and Administration
Arrangements" for a discussion of the services to be provided and
fees to be paid for such services.
Investment in the Trust
The minimum initial investment for admission to a Portfolio is
$100. There is no minimum requirement for subsequent
investments. The purchase price for Units of a Portfolio is the
net asset value per Unit on the next Valuation Date following
receipt by the Association of a Participating Trust's
satisfactorily completed investment instructions and payment.
Units may be withdrawn from the Trust or funds transferred from
one Portfolio to another on any Valuation Date. See "How to
Invest in the Trust," "Exchanges" and "Redemptions."
Fees and Expenses of the Portfolios
The following table of fees and expenses is provided to assist
investors in understanding the various costs and expenses that a
Participant in a Participating Trust will bear directly or
indirectly in connection with investment in one or more Port-
folios. The example set forth below is not a representation of
future expenses; the Portfolios' expenses may be more or less
than those shown. The tables and the assumption in the example
of a 5% annual return are required by regulations of the
Securities and Exchange Commission; the 5% annual return is not a
prediction of and does not represent the projected performance of
the Portfolios. For a more complete description of the various
costs and expenses, see "Investment Management and Administration
Arrangements."
PAGE
<PAGE>
<TABLE>
Unitholder Transaction Expenses: None
<CAPTION>
Long- Short-
International Growth Value Intermediate Intermediate Money
Value Equity Equity Equity Balanced Fixed Income Fixed Income Market
Portfolio <F1> Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
Annual Portfolio Operating <F2>
Expenses (as a percentage
of average net assets):
Management Fees <F3> 1.00% .80% .95% .60% .48% .50% .51%
12b-1 Fees <F3> 0 0 0 0 0 0 0
Other Expenses
Custodial Trustee .24% .22% .22% .22% .22% .21% .21%
Administrator .48% .49% .50% .49% .49% .49% .49%
Other .24% .16% .15% .16% .16% .17% .17%
_____ ____ ____ ____ ____ ____ ____
Total Other Expenses .96% .87% .87% .87% .87% .87% .87%
Total Portfolio Operating
Expenses <F4> 1.96% 1.67% 1.82% 1.47% 1.35% 1.37% 1.38%
<FN>
<F1>
Unlike the other portfolios, the figures for other expenses of the International Value Equity Portfolio are based
upon estimated annualized projections. Management fees are determined by contract with the Investment Manager.
<F2>
"Operating Expenses" are based on actual expense amounts incurred for the year ended December 31, 1995.
<F3>
The Trust does not impose a sales load, redemption fees, exchange fees, or 12b-1 fees.
<F4>
There are no initial or annual maintenance fees for participation in the Trust.
</FN>
</TABLE>
<TABLE>
The assumed return of 5% and expenses should not be considered indications of actual or expected Portfolio performance,
both of which may vary.
Example:
You would pay the following expenses in each of the Portfolios on a $1000 investment, assuming (1) 5% annual return and
(2) whether or not a redemption occurs at the end of each time period:
<CAPTION>
Long- Short-
International Growth Value Intermediate Intermediate Money
Value Equity Equity Equity Balanced Fixed Income Fixed Income Market
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
1 year $ 20 $ 17 $ 18 $ 15 $ 14 $ 14 $ 14
3 years $ 62 $ 53 $ 57 $ 46 $ 43 $ 42 $ 44
5 years $ 91 $ 99 $ 80 $ 74 $ 75 $ 76
10 years $198 $214 $176 $162 $165 $166
</TABLE>
<TABLE>
Condensed Financial Information
The selected data for years ended December 31, 1991 through December 31, 1995 has been audited by Coopers & Lybrand,
L.L.P., independent auditors whose report dated February 9, 1996 is contained in a Statement of Additional Information
which may be obtained without charge by writing to the Alameda-Contra Costa Medical Association, 6230 Claremont Avenue,
Oakland, CA 94618 or by calling the Association at (510) 654-5383. The other selected data, also audited, is not
covered by the auditor's current report.
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO 1995 <F5>
<S> <C>
Net asset value, beginning of period 10.00
Net investment gain (loss) 0
Net realized and unrealized gain (loss) 0.09
_____
Total from investment operations 0.09
Net asset value, end of period 10.09
Total Return .90% <F6>
Ratios and Supplemental Data
Net assets at end of period (in 000's) 805
Ratio of expenses to average net assets 0.11% <F6>
Ratio of net investment income to
average net assets 0.04% <F6>
Portfolio turnover rate 0
<FN>
<F5>
From December 1, 1995 through December 31, 1995.
<F6>
Figures are not annualized, represent the portfolio's
actual experience from December 1 through December 31, 1995.
</FN>
</TABLE>
PAGE
<PAGE>
<TABLE>
Condensed Financial Information, continued
<CAPTION>
GROWTH EQUITY PORTFOLIO 1995 1994 1993 1992 <F7>
<S> <C> <C> <C> <C>
Net asset value, beginning of year 12.12 13.01 11.74 10.00
Net investment gain (loss) (.07) (.11) (.07) (.01)
Net realized and unrealized gain (loss) 2.22 (.78) 1.34 1.75
_____ _____ _____ _____
Total from investment operations 2.15 (.89) 1.27 1.74
Net asset value, end of year 14.27 12.12 13.01 11.74
Total Return 17.74% (6.84)% 10.82% 69.60% <F8>
Ratios and Supplemental Data
Net assets at end of year (in 000's) 3,361 2,539 3,242 1,660
Ratio of expenses to average net assets 1.67% 1.86% 1.79% .41%
Ratio of net investment income to
average net assets (.68)% (.72)% (.68)% (.07)%
Portfolio turnover rate 33.63% 52.49% 38.58% 12.95%
<FN>
<F7>
From October 1, 1992 (inception) through December 31, 1992.
<F8>
annualized
</FN>
</TABLE>
PAGE
<PAGE>
<TABLE>
Condensed Financial Information, continued
<CAPTION>
VALUE EQUITY PORTFOLIO 1995 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year 94.93 95.88 83.11 73.63 60.74 60.54
Net investment income 1.48 .21 .78 1.54 1.64 1.01
Net realized and unrealized gain (loss) 22.79 (1.16) 11.99 7.94 11.25 (.81)
_____ ______ _____ _____ _____ _____
Total from investment operations 24.27 (.95) 12.77 9.48 12.89 .20
Net asset value, end of year 119.20 94.93 95.88 83.11 73.63 60.74
Total Return 25.57% (.99)% 15.37% 12.88% 21.22% .33% <F9>
Ratios and Supplemental Data
Net assets at end of year (in 000's) 20,280 16,825 15,518 12,622 11,761 9,598
Ratio of expenses to average net assets 1.82% 1.99% 1.99% 2.01% 2.16% .59%
Ratio of net investment income to
average net assets 1.15% .70% 1.18% 1.75% 2.39% 1.67%
Portfolio turnover rate 103.58% 116.01% 65.85% 85.40% 75.67% 56.48%
<FN>
<F9>
annualized
</FN>
</TABLE>
PAGE
<PAGE>
<TABLE>
Condensed Financial Information, continued
<CAPTION>
BALANCED PORTFOLIO 1995 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year 37.05 37.04 34.19 32.48 27.43 28.83
Net investment income .40 1.67 1.55 .65 .76 .97
Net realized and unrealized gain (loss) 8.46 (1.66) 1.30 1.06 4.29 (2.37)
_____ ______ _____ _____ _____ _____
Total from investment operations 8.86 .01 2.85 1.71 5.05 (1.40)
Net asset value, end of year 45.91 37.05 37.04 34.19 32.48 27.43
Total Return 23.91% .03% 8.34% 5.26% 18.41% (11.65)% <F9>
Ratios and Supplemental Data
Net assets at end of year (in 000's) 3,489 2,486 2,854 3,223 2,593 1,795
Ratio of expenses to average net assets 1.47% 1.63% 1.63% 1.64% 1.78% .29%
Ratio of net investment income to
average net assets 2.68% 3.09% 2.57% 2.59% 3.37% 3.51%
Portfolio turnover rate 6.30% 5.18% 4.75% 17.78% 13.61% 5.43%
<FN>
<F9>
annualized
</FN>
</TABLE>
PAGE
<PAGE>
<TABLE>
Condensed Financial Information, continued
<CAPTION>
LONG-INTERMEDIATE FIXED INCOME PORTFOLIO 1995 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year 48.23 50.73 46.46 43.67 38.04 36.43
Net investment income 1.89 5.96 2.94 3.03 2.36 1.53
Net realized and unrealized gain (loss) 6.76 (8.46) 1.33 (.24) 3.27 .08
_____ ______ _____ _____ _____ _____
Total from investment operations 8.65 (2.50) 4.27 2.79 5.63 1.61
Net asset value, end of year 56.88 48.23 50.73 46.46 43.67 38.04
Total Return 17.93% (4.93)% 9.19% 6.39% 14.80% 10.61% <F10>
Ratios and Supplemental Data
Net assets at end of year (in 000's) 4,722 3,763 5,156 4,908 4,843 3,816
Ratio of expenses to average net assets 1.35% 1.49% 1.49% 1.52% 1.70% .28%
Ratio of net investment income to
average net assets 5.53% 5.64% 5.44% 6.11% 6.49% 4.36%
Portfolio turnover rate 5.95% 0% 10.68% 9.79% 20.60% 1.86%
<FN>
<F10>
annualized
</FN>
</TABLE>
PAGE
<PAGE>
<TABLE>
Condensed Financial Information, continued
<CAPTION>
SHORT-INTERMEDIATE FIXED INCOME PORTFOLIO 1995 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year 18.85 19.35 18.19 17.15 15.37 14.13
Net investment income 1.48 1.45 .78 .01 .85 .69
Net realized and unrealized gain (loss) .57 (1.95) .38 1.03 .93 .55
_____ ______ _____ _____ _____ _____
Total from investment operations 2.05 (.50) 1.16 1.04 1.78 1.24
Net asset value, end of year 20.90 18.85 19.35 18.19 17.15 15.37
Total Return 10.88% (2.58)% 6.38% 6.06% 11.58% 21.06% <F10>
Ratios and Supplemental Data
Net assets at end of year (in 000's) 6,073 6,182 7,575 6,747 3,336 2,666
Ratio of expenses to average net assets 1.37% 1.51% 1.47% 1.47% 1.68% .28%
Ratio of net investment income to
average net assets 4.76% 4.78% 4.75% 5.16% 6.04% 4.60%
Portfolio turnover rate 19.21% 0% 25.60% 6.69% 41.22% 26.50%
<FN>
<F10>
annualized
</FN>
</TABLE>
PAGE
<PAGE>
<TABLE>
Condensed Financial Information, continued
<CAPTION>
MONEY MARKET PORTFOLIO 1995 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year 41.80 40.78 39.94 38.66 36.77 35.33
Net investment income 3.91 1.15 9.38 7.29 2.74 1.27
Net realized and unrealized gain (loss) (1.68) ( .13) (8.54) (6.01) (.85) .17
_____ ______ _____ _____ _____ _____
Total from investment operations 2.23 1.02 .84 1.28 1.89 1.44
Net asset value, end of year 44.03 41.80 40.78 39.94 38.66 36.77
Total Return 5.33% 2.50% 2.10% 3.31% 5.14% 9.78% <F11>
Ratios and Supplemental Data
Net assets at end of year (in 000's) 2,566 2,716 2,120 3,481 7,415 9,619
Ratio of expenses to average net assets 1.38% 1.50% 1.59% 1.55% 1.76% .59%
Ratio of net investment income to
average net assets 4.11% 2.87% 3.60% 4.33% 5.10% 7.72%
<FN>
<F11>
annualized
</FN>
</TABLE>
PAGE
<PAGE>
THE TRUST
The Alameda-Contra Costa Medical Association Collective
Investment Trust for Retirement Plans (the "Trust") is a
collective investment trust which was established under the laws
of the State of California by the Alameda-Contra Costa Medical
Association (the "Association") to be managed by a Supervisory
Committee with Wells Fargo Bank, National Association ("Wells
Fargo"), acting as the custodial trustee (the "Custodial
Trustee") under a Declaration of Trust dated February 9, 1990.
The Association is also administrator of the Trust pursuant to an
Administrative Services Agreement dated as of July 24, 1990,
between the Trust and the Association (the "Administrative
Services Agreement"). The Trust is registered with the
Securities and Exchange Commission as an open-end diversified
management investment company. Such registration does not
involve supervision of management or investment practices or
policies of the Trust. Units of beneficial interest in the
Portfolios (the "Units") are sold without a sales charge and are
available only to Retirement Plans. See "How to Invest in the
Trust." Retirement Plans that have been admitted to the Trust
are referred to as "Participating Trusts." An individual for
whose benefit a Participating Trust is maintained or who may be
entitled to receive benefits from a Participating Trust is
referred to as a "Participant."
Assets of the Portfolios are invested in accordance with their
investment objectives by investment managers (each, an
"Investment Manager") who have contracted with the Trust to
provide investment advisory and management services to specified
Portfolios. See "Investment Objectives and Policies" and
"Investment Management and Administration Arrangements--The
Investment Management Agreements."
HOW TO INVEST IN THE TRUST
Eligibility for Admission
To invest in the Trust, an individual, partnership, or
corporation must establish a Retirement Plan.
Retirement Plans are:
Individual retirement trust accounts ("IRAs"), including rollover
IRA and IRAs established to receive contributions under
simplified employee Pension Plans ("SEPs"), that are exempt under
Section 408(e) of the Internal Revenue Code of 1986, as amended
(the "Code"), and that are maintained in conformity with Section
408(a) of the Code, and
Trusts described in Section 401(a) of the Code that are exempt
from taxation under Section 501(a) of the Code and form parts of
stock bonus, pension or profit sharing plans ("Qualified Plans").
Prototype Plans.
The Association sponsors the Alameda-Contra Costa Medical
Association Prototype Defined Contribution Plan and Trust (the
"Prototype Plan") which can be adopted by a self-employed
individual, partnership or corporation (the "Employer") that is a
member of (or whose partners or shareholders are members of) the
Association, other county associations or the California Medical
Association. Most Qualified Plans represent adoption of the
Prototype Plan. The Prototype Plan authorizes Participants to
direct the plan trustee appointed by the Employer (the "Plan
Trustee") to invest contributions made under the Qualified Plan
by, or for, a Participant in one or more of the Portfolios. In
addition, if so authorized by the Employer, the Participant may
direct the Plan Trustee to invest contributions in any readily
tradable security or life insurance contracts.
Other Plans.
Other Qualified Plans that do not represent an adoption of the
Prototype Plan may also invest in the Portfolios provided their
governing documents specifically authorize such investment.
IRA's.
Each IRA authorized to invest in a Portfolio is established by
adopting the Alameda-Contra Costa Medical Association Individual
Retirement Plan. The Participant for whose benefit the IRA is
maintained (or his or her beneficiary, in the event of the
Participant's death) is authorized to direct the investment of
assets in the IRA in one or more Portfolios.
Establishing an IRA and/or SEP
Documents for establishing an IRA and/or a SEP, which consist of
an adoption agreement, Plan document, contribution agreement (for
a SEP) and Disclosure Statement describing eligibility, amounts
of, deadlines for making contributions to, and rules regarding
distributions from, an IRA and/or a SEP, can be obtained from the
Association, 6230 Claremont Avenue, Oakland, CA 94618, or by
calling (510) 654-5383. New IRA's will be opened as of the date
that an executed adoption agreement is received by the
Association. If the agreement is revoked within seven days, the
individual will receive a refund of all contributions. SEP's
become effective on the date specified in the contribution
agreement (IRS Form 5305-SEP) establishing the SEP.
Establishing a Qualified Plan
Documents required for establishing a Qualified Plan can be
obtained from the Association, 6230 Claremont Avenue, Oakland, CA
94618, or by calling (510) 654-5383. Qualified Plans become
effective on the date specified in the adoption agreement or Plan
Document, in the case of an individually designed plan.
Investing in the Trust
Once a Retirement Plan has been established, the Participant, the
Plan Trustee or other person with investment authority for a
particular Retirement Plan may direct the Association to instruct
the Custodial Trustee to invest the Retirement Plan assets in one
or more Portfolios using a request form provided by the
Association. Admissions to the Trust will be made as of the
valuation Date next succeeding establishment of a Retirement Plan
and contribution of funds. The completed form should be
delivered to the Association at 6230 Claremont Avenue, Oakland,
California 94618 to the attention of Mary S. Hale, Program
Coordinator. Unless the Participant already has funds available
for investment in a Portfolio or Portfolios, the form should be
accompanied by a check made payable to Wells Fargo Bank for the
amount intended to be invested in the Trust. Cash should not be
mailed.
Each Plan Trustee or Participant, as the case may be, is
responsible for notifying the Association on a timely basis of
investment instructions. The Association aggregates the instruc-
tions from the various Plan Trustees, in the case of Qualified
Plans, and Participants, in the case of IRAs, and instructs the
Custodial Trustee to allocate the Retirement Plan assets among
the Portfolios in accordance with such investment instructions.
The minimum initial investment for participation in a Portfolio
is $100. There is no minimum requirement for subsequent
investments. The purchase price for Units of a Portfolio is the
net asset value per Unit on the next Valuation Date following
receipt by the Association of a Participating Trust's
satisfactorily completed investment instructions and payment.
Investments are subject to determination by the Association that
the investment instruction form has been properly completed.
If funds are received by the Association without designation of a
Portfolio, the Association shall, if it is unable to confirm the
Portfolio designation, instruct the Custodial Trustee to invest
the funds in accordance with the Custodial Trustee's most recent
investment instructions. If the investment is the initial
investment for a Participating Trust, the undesignated funds will
be invested in the Money Market Portfolio pending further
instruction from the Participant or Plan Trustee, as the case may
be.
Units of the Trust may be redeemed as described under
"Redemptions." Because Units are not transferable, certificates
representing Units will not be issued. All Units purchased are
confirmed by mail to the Participating Trust and are credited to
the account of the Participating Trust on the Trust's books.
The Supervisory Committee reserves the right in its sole
discretion to suspend the availability of Units when, in the
judgment of the Supervisory Committee, such suspension is in the
best interests of the Trust. The Custodial Trustee reserves the
right to reject investment instructions when, in the judgment of
the Custodial Trustee, such rejection is in the best interests of
the Trust.
INVESTMENT OBJECTIVES AND POLICIES
The Trust currently offers seven Portfolios, each with a
different investment objective, for the investment of retirement
assets held in Retirement Plans. The assets of a Retirement Plan
may be invested in one or more Portfolios, and may be transferred
among the Portfolios at any time that such requests are presented
to the Association. In addition, Units may be redeemed upon
tender to the Association. See "How to Invest in the Trust,"
"Redemptions" and "Exchanges."
Although all the Portfolios generate current income to some
degree, it is the policy of each Portfolio to earn current income
for reinvestment and further accumulation of assets for
retirement. Accordingly, no current income will be distributed.
See "Dividends and Distributions." This policy is unlike that of
most investment companies, which do not exclusively invest
assets of Retirement Plans in Portfolios as the Trust does.
Participating Trusts do, however, receive a benefit from current
income of the Portfolios in which they invest comparable to the
benefit received from the distributions made by most other
investment companies. In the Trust, this benefit is received
only in the form of an increase in net asset value per Unit
rather than in the form of cash or reinvestment through the
purchase of additional Units.
There can be no assurance that the investment objectives of any
Portfolio can be attained. The net asset value per Unit of the
International Value Equity Portfolio, the Growth Equity
Portfolio, the Value Equity Portfolio, the Balanced Portfolio,
the Long-Intermediate Fixed Income Portfolio and the Short-
Intermediate Fixed Income Portfolio will fluctuate, while the net
asset value of the Money Market Portfolio is not expected to
materially fluctuate in price from its principal value.
The International Value Equity Portfolio
The investment objective of the International Value Equity
Portfolio is to seek capital appreciation through investing
primarily in the American Depository Receipts of companies
incorporated or organized outside the United States.
It is the present intention of the Investment Manager to invest
the International Value Equity Portfolio's assets in companies
based in Continental Europe, the United Kingdom, the Pacific
Basin and in such other areas and countries as the Investment
Manager may determine from time to time. Primary emphasis will
be in foreign equity securities that have been converted into
American Depository Receipts (ADR's). ADR's are certificates of
ownership of a foreign based corporation that are being held in
United States banks. Rather than purchase "ordinary shares" of a
foreign corporation in foreign countries, an investment manager
can purchase shares in the United States of America in a form of
an ADR eliminating the need to convert currencies or to transfer
certificates internationally. Under normal market conditions, at
least 80% of the total Portfolio value of assets will be invested
in the ADRs of companies from at least three different countries
(not including the United States). The percentage of the
International Value Equity Portfolio's assets invested in
particular geographic sectors may shift from time to time in
accordance with the judgment of the Investment Manager.
In selecting investments for the International Value Equity
Portfolio, the Investment Manager attempts to ascertain
inexpensive markets world-wide through traditional measures of
value, including low price to earnings ratio, high yield,
unrecognized assets, potential for management change and/or the
potential to improve profitability. In addition, the Investment
Manager seeks to identify companies it believes are financially
productive ad undervalued in those markets focusing on individual
stock selection (a "bottom-up" approach) rather than on
forecasting stock market trends (a "top-down" approach).
In searching for undervalued ADRs in the undervalued markets, the
Investment Manager utilizes a security-selection process
incorporating three levels of investment research. The process
is based on precise and consistent analysis of historical
financial data, with little emphasis placed on forecasting future
earnings or events. The three levels of investment research
include:
(1) Database Screening - The Investment Manager employs a
systematic process to search global databases for companies with
characteristics that indicate undervaluation versus a local index
and versus the EAFE Index (an index of Europe, Australia and Far
East based companies); in particular, companies that have high
financial returns on equity and on assets and yet are
attractively priced (low price/book and low price/cash flow).
(2) Accounting Validation - The Investment Manager applies an
intensive accounting validation process to each security
satisfying the initial screening. This step is designed to
examine whether a company's stated financial statistics and
business value are real and to uncover any hidden opportunities
through balance sheet and cash flow analysis. By focusing on
detailed cash flow analysis and discretionary balance sheet
items, analysts seek to determine that a company's financial
productivity is accurately stated, look for and take advantage of
pricing anomalies, and discover opportunities including hidden
value per share.
(3) Fundamental Analysis - Companies satisfying the accounting
validation process are monitored more closely including updates
to earnings estimates and the price relationships to overall
market conditions. These securities undergo the final
qualitative step in the equity security selection process,
fundamental analysis, a critical component in the international
ADR investment process. The process is in place to ensure
current returns can be sustained, to discover hidden value, as
well as to identify the catalyst for price appreciation. This
involves in-depth analysis of fundamental variables including:
quality and depth of management, competitive position,
sensitivity to economic/market cycles, margin and sales trends,
brand name strength, geographical breakdown and the macro
environment in which company operates.
The assets of the International Value Equity Portfolio may be
invested in securities other than ADRs or foreign securities
when, in the judgment of the Investment Manager, business or
financial conditions warrant. In such an event, the
International Value Equity Portfolio may take a temporary
defensive position and invest without limitation in cash or cash
equivalents. Cash equivalents are short-term interest bearing
instruments of the type permitted to be held by the Money Market
Portfolio.
Because the International Value Equity Portfolio will participate
in the equity market, it may provide greater potential for
capital appreciation and growth of current income over the long
term than the Long Intermediate Fixed Income Portfolio, the
Short-Intermediate Fixed Income Portfolio or the Money Market
Portfolio. However, the International Value Equity Portfolio
will be selected primarily on the basis of their capital
appreciation potential, it may also provide greater growth of
capital (excluding reinvested income) than the Balanced
Portfolio, while the Balanced Portfolio will have a higher level
of current income to be reinvested than the International Value
Equity Portfolio.
The Growth Equity Portfolio
The objective of the Growth Equity Portfolio is to increase
retirement funds through equity securities which provide long-
term growth of capital. The realization of current income will
not be a consideration. Primary investment emphasis will be in
equity based securities which are both common stocks and those
debt securities and preferred stocks which are convertible into
common stocks. Under normal conditions, the Portfolio will
maintain approximately 85% of its assets in equity securities.
In selecting common stocks, the Investment Manager of the Growth
Equity Portfolio will primarily invest in companies that are
perceived to have long-range capital appreciation potential. The
Portfolio may consist of common stocks that are of small, mid and
large capitalized companies. Smaller capitalized companies are
generally considered to be companies that are in developing
phases of their businesses. Smaller capitalized companies are
generally considered to be companies that are in developing
phases of their businesses. Mid-capitalized and large-
capitalized are generally considered to be companies that have
been established for a longer period of time and that have
exhibited past earnings growth characteristics that are superior
to the earnings of the S&P 500 index.
In evaluating common stocks, the Investment Manager will focus on
companies that characteristically have earnings growth potential
that are above average or accelerating in their industry. These
companies are referred to as "growth" stocks. Companies may also
be selected on expectations that they will generate above average
near-term earnings based on certain industry or economic
conditions that exist from time to time in the market place.
These companies that are selected typically have dividend yields
that are below the S&P 500 dividend yield and common stocks
purchased in the Value Equity Portfolio and the Balanced
Portfolio. Growth stocks also tend to have financial valuation
ratios, such as price to book, price to earnings, return on
equity, dividend growth rates, sales to book and earning growth
rates that are higher than stocks in the S&P 500 index. The
volatility of stocks purchased in the Growth Equity Portfolio
will tend to be greater than stocks purchased in the Value Equity
Portfolio and the Balanced Portfolio. The Investment Manager
will seek to reduce risk through diversification. This strategy
encompasses the number of stocks owned in the Portfolio, the
markets in which companies compete, and diversification in small,
medium and large capitalization companies that are purchased.
The primary criterion for selecting convertible debt, securities,
and preferred stock, is the price of the underlying common stock
which is calculated in the manner described above. The
Investment Manager may choose to invest in convertible securities
from time to time when it is more favorable to do so rather than
owning the underlying common stock of the company. Premium and
conversion factors and income differentials are important
investment criteria that are considered when making an evaluation
to buy convertible securities.
The assets of the Growth Equity Portfolio may change when, in the
judgment of the Investment Manager, business or financial
conditions warrant. In such event, the Growth Equity Portfolio
may take a temporary defensive position and invest without
limitation in cash or cash equivalents. Cash equivalents are
short term interest bearing instruments of the type permitted to
be held by the Money Market Portfolio. Initially, most or all of
the assets in the Growth Equity Portfolio may be invested in cash
or cash equivalents until, in the judgment of the Investment
Adviser, the aggregate fair market value of assets in the
Portfolio makes investment in equity securities prudent.
Since securities in the Growth Equity Portfolio will be selected
on the basis of their capital appreciation potential (since
income is not a consideration) it may provide greater growth of
capital than the Value Equity Portfolio, Balanced Portfolio,
Long-Term Intermediate Fixed Income Portfolio, Short Intermediate
Fixed Income Portfolio, Fixed Income and Money Market Portfolios.
Unit values may also tend to be more volatile than these
Portfolios as well.
The Value Equity Portfolio
The objective of the Value Equity Portfolio is to increase
retirement funds primarily through securities which provide long
term growth of capital. Current income is a secondary objective.
Primary investment emphasis will be on equity-based securities,
which are both common stocks and those debt securities and
preferred stocks which are convertible into common stocks. Under
normal market conditions, the Portfolio will maintain
approximately 85% of its assets in equity securities.
In selecting the common stocks, the Investment Manager for the
Value Equity Portfolio will consider the intrinsic value of the
stock to be purchased, the expected earnings growth and current
and expected dividend income. In evaluating expected earnings
and dividend income, the Investment Manager examines a company's
revenue growth, historical margins, earnings growth, dividend
payout ratios and dividend growth, and makes estimates of the
likelihood that future revenues growth and margins are realizable
given the current and expected economic environment for the
company and the industry in which it operates. There are no
restrictions on the total common stock market capitalization of
the companies in the Portfolio. The goal of the Value Equity
Portfolio is to achieve a diversified Portfolio of publicly
traded common stocks which it believes are undervalued. The
Investment Manager performs financial analyses of a company's
balance sheet, income statement, and sources and uses of funds to
determine the relative undervaluation of a particular security.
Various ratios are used to compare a security to a chosen
universe of securities. A security may be undervalued based
upon, for example, price to revenues, price to book value, price
to dividend, total assets to market capitalization and other
similar measures. Through diversification and selection, the
Investment Manager will seek to reduce the risks of fluctuation
in value and income inherent in investing in the equity market.
The primary criterion for selecting convertible debt securities
and preferred stock is the value of the underlying common stock,
which is evaluated in the manner described above. An additional
factor to consider is the premium to be paid for the conversion
privilege which is taken into account in evaluating a convertible
debt security as an investment for the Portfolio. The Investment
Manager may, from time to time, invest in convertible securities
when such investment appears to be more favorable than investment
in the underlying common stock of the company. The Investment
Manager's decision may be based on, among other considerations,
the underlying common stock, prevailing interest rates, premiums
in the market for similar interests, historical premiums, time
remaining for the conversion, and the income differential between
the dividend rate on the common stock and the rate on the issue
being evaluated.
The assets of the Value Equity Portfolio may change, however,
when, in the judgment of the Investment Manager, business or
financial conditions warrant. In such event, the Value Equity
Portfolio may take a temporary defensive position and invest
without limitation in cash or cash equivalents. Cash equivalents
are short term interest bearing instruments of the type permitted
to be held by the Money Market Portfolio.
Because the Value Equity Portfolio will participate in the equity
market, it may provide greater potential for capital appreciation
and growth of current income over the long term than the Long-
Intermediate Fixed Income Portfolio, the Short-Intermediate Fixed
Income Portfolio or the Money Market Portfolio. However, the
Value Equity Portfolio also may have a more volatile Unit value
and lower current yield than these other Portfolios. Since
securities in the Value Equity Portfolio will be selected
primarily on the basis of their capital appreciation potential,
it may also provide greater growth of capital (excluding
reinvested income) than the Balanced Portfolio, while the
Balanced Portfolio will have a higher level of current income to
be reinvested than the Value Equity Portfolio.
The Balanced Portfolio
The objective of the Balanced Portfolio is to increase retirement
funds through a balance of current income and long term growth of
capital. Investment emphasis will be on common stocks and fixed
income securities, primarily preferred stock of United States
corporations and debt securities, such as bonds, notes, and
debentures of United States corporations and those issued or
guaranteed by the United States Government, its agencies or
instrumentalities. Debt obligations issued or guaranteed by the
United States Government, its agencies or instrumentalities
provide greater safety of principal but also generally provide
lower current income than debt obligations of corporations. The
Balanced Portfolio may invest in debt securities issued or
guaranteed by the United States Government, its agencies or
instrumentalities without limitation on amount. The Balanced
Portfolio will invest in debt securities of United States
corporations only if they carry a rating of at least "A" from
Standard & Poor's Corporation, Moody's Investors Service, Inc. or
other industry-recognized rating agencies. See "Appendix" for an
explanation of the ratings. At times the Balanced Portfolio also
may hold debt securities and preferred stocks which are
convertible into common stock. Under normal circumstances, at
least 25% of the value of the total assets of the Balanced
Portfolio will be invested in fixed income securities. When
market conditions dictate a more defensive investment strategy,
part of the Balanced Portfolio may be held without limitation on
amount in cash or cash equivalents on a temporary basis. Cash
equivalents are short term interest bearing instruments of the
type permitted to be held by the Money Market Portfolio.
The Investment Manager may from time to time sell, that is
"write", call options on common stocks already purchased in the
Portfolio. These are called "covered options." The purpose of
this investment strategy is to create income by selling options
for a specified price, known as a premium, on stocks that in the
Investment Manager's point of view will not be "called" or
exercised by the buyer. Or, the Investment Manager may sell
options on the stocks when he believes the premium, plus the
proceeds from the stocks that are called, will create a greater
total rate of return than would be received if the common stocks
alone were to be sold. The proceeds received from selling an
option that is not exercised is considered income to the
Portfolio. The disadvantages of this strategy is that if options
are exercised, the Portfolio will not benefit from any increase
of value of the underlying security above the agreed upon option
price.
Investments in equity-based securities will be based on the same
criteria used by the Value Equity Portfolio in selecting equity-
based securities. A particular equity-based security may be more
appropriate for the Value Equity Portfolio than for the Balanced
Portfolio, or vice versa, when such factors as current yield and
expected earnings and dividend growth are considered. In
addition, the Balanced Portfolio will generally hold securities
which have a higher dividend payout ratio than securities held in
the Value Equity Portfolio and securities which are traded on the
New York Stock Exchange or other listed exchanges. The growth
rate and market volatility of securities held in the Balanced
Portfolio will generally be lower than those held in the Value
Equity Portfolio because the Balanced Portfolio emphasizes more
stable growth companies.
As with the Value Equity Portfolio, the Balanced Portfolio's
investments in equity-based securities may provide greater
potential for capital appreciation and growth of current income
than the other Portfolios. The Balanced Portfolio also may have
a more volatile Unit value and lower current yield than these
other Portfolios. Although the Balanced Portfolio's total return
will be achieved through more moderate growth of capital than the
Value Equity Portfolio, it may have in that total return a higher
level of current income to be reinvested than the Value Equity
Portfolio. Market conditions may from time to time dictate
divergences from the guidelines used to obtain the investment
objectives of the Balanced Portfolio, because growth conditions,
market conditions and dividend payout ratios of securities may
change. The percentage of equity-based to fixed income
securities in the Balanced Portfolio thus may vary in response to
such changes.
The Long-Intermediate Fixed Income Portfolio
The investment objective of the Long-Intermediate Fixed Income
Portfolio is to obtain increased income for retirement assets by
investing in quality long and intermediate term fixed income
securities, including corporate and government fixed income
obligations and mortgage-related securities. Under normal
circumstances, at least 65% of the value of the total assets of
the Long-Intermediate Fixed Income Portfolio will be invested in
intermediate and long term fixed income securities. The average
maturity of securities in the Long-Intermediate Fixed Income
Portfolio will be based primarily upon the Investment Manager's
expectations for the future course in interest rates and the then
prevailing price and yield levels in the fixed income market.
The weighted average maturity of the securities in the Portfolio
will be between 7 and 12 years. The Investment Manager will
invest the assets in fixed income securities that are rated at
least "A" by Standard & Poor s Corporation, Moody's Investors
Service, Inc. or other industry-recognized rating agencies. See
"Appendix" for an explanation of the ratings.
The corporate bond portfolio part of this Portfolio will be
diversified by investment in bonds issued by different companies
in different industries. There is the risk that corporate bonds
might be called by the issuer if the bond interest rate is higher
than currently prevailing interest rates.
The Long-Intermediate Fixed Income Portfolio may invest part of
its assets in mortgage-related securities represented by pools of
mortgage loans assembled for sale to investors by various
governmental agencies such as the Government National Mortgage
Association ("GNMA") and government-related organizations such as
the Federal National Mortgage Association ("FNMA") and the
Federal Home Loan Mortgage Corporation ("FHLMC"). If the Long-
Intermediate Fixed Income Portfolio purchases a mortgage-related
security at a premium, all or part of the premium may be lost if
there is a decline in the market value of the security, whether
resulting from changes in interest rates or prepayments in the
underlying mortgage collateral. As with other interest-bearing
securities, the price of such securities is universally affected
by changes in interest rates. However, though the value of a
mortgage-related security may decline when interest rates rise,
the converse is not necessarily true, since in periods of
declining interest rates the mortgages underlying the securities
are more likely to prepay. For this and other reasons, a
mortgage-related security's stated maturity may be shortened by
unscheduled prepayments on the underlying mortgage and,
therefore, it is not possible to predict accurately the
security's return to the Portfolio. In addition, regular
payments received in respect of mortgage-related securities
include both principal and interest. No assurance can be given
as to the return the Long-Intermediate Fixed Income Portfolio
will receive when these amounts are reinvested. Prepayments
generally will be reinvested at lower rates.
The Long-Intermediate Fixed Income Portfolio may also invest in
collateralized mortgage obligations ("CMOs") which are debt
obligations collateralized by mortgage loans or mortgage pass-
through securities. Typically, CMOs are collateralized by GNMA,
FNMA or FHLMC certificates, but also may be collateralized by
whole loans or private mortgage pass-through securities (such
collateral collectively hereinafter referred to as "Mortgage
Assets"). Payments of principal and interest on the Mortgage
Assets, and any reinvestment income thereon, provide the funds to
pay the debt service on the CMOs. CMOs may be issued by agencies
or instrumentalities of the United States Government, or private
originators of, or investors in, mortgage loans, including
savings and loan associations, mortgage banks, commercial banks,
investment banks and special purpose subsidiaries of the
foregoing.
In a CMO, a series of bonds or certificates is issued in multiple
classes. Each class of CMOs, often referred to as a "tranche,"
is issued at a specific fixed or floating coupon rate and has a
stated maturity or final distribution date. Principal
prepayments on the Mortgage Assets may cause the CMOs to be
retired substantially earlier than their stated maturities or
fixed distribution dates. Interest is paid or accrued on all
classes of CMOs, on a monthly, quarterly or semiannual basis.
The principal of and interest on the Mortgage Assets may be
allocated among the several classes of a series of a CMO in
innumerable ways. In a common structure, payments of principal,
including any principal prepayments, on the Mortgage Assets are
applied to the classes of the series of a CMO in the order of
their respective stated maturities or final distribution dates,
so that no payment of principal will be made on any class of CMOs
until all other classes having an earlier stated maturity or
final distribution date have been paid in full.
The staff of the Securities and Exchange Commission has
determined that certain issuers of CMOs may be investment
companies for purposes of Section 12(d) of the Investment Company
Act of 1940. The Trust will not invest more than 10% of its
total assets in securities issued by issuers considered to be
investment companies or more than 5% of its assets in securities
issued by any single such entity, and will not acquire more than
3% of the voting securities of any single such entity. These
limitations will not materially inhibit the Long-Intermediate
Fixed Income Portfolio's ability to achieve its investment
objective as no more than 15% of the Long-Intermediate Fixed
Income Portfolio's total assets will be invested in CMOs, subject
to the Trust's overall investment restrictions.
The automatic reinvestment of interest income is expected to be
the primary basis for growth in a Unitholder's investment in the
Long-Intermediate Fixed Income Portfolio. The Long-Intermediate
Fixed Income Portfolio also will attempt to take advantage of
undervalued sectors while selling fixed income securities in
overvalued sectors. However, since investments will normally
consist of fixed income securities and mortgage-related
securities, the ability to achieve capital appreciation is
limited. Should the Investment Manager deem it appropriate for
defensive reasons, the maturity schedule may be temporarily
shortened to reduce risks and take advantage of market
opportunities. The value of the securities held in the Long-
Intermediate Fixed Income Portfolio will generally vary inversely
to changes in prevailing interest rates. The value of these
securities also may be affected by general market and economic
conditions and by the credit-worthiness of the issuer.
Whenever, in the judgment of the Investment Manager, there is a
high probability that there will be a decline in the fixed income
securities market, part of the assets of the Long-Intermediate
Fixed Income Portfolio may be held in cash or cash equivalents as
a temporary defensive strategy. To the extent that the Long-
Intermediate Fixed Income Portfolio invests in cash or cash
equivalents, it will not be invested in accordance with the
investment policies designed for it to realize its investment
objective. Cash equivalents are short term interest bearing
instruments of the type permitted to be held by the Money Market
Portfolio.
The Short-Intermediate Fixed Income Portfolio
The objective of the Short-Intermediate Fixed Income Portfolio is
to obtain interest income for retirement assets by investing in
quality short and intermediate term fixed income securities,
including corporate and government fixed income obligations and
mortgage-related securities. Under normal circumstances, at
least 65% of the value of the total assets of the
Short-Intermediate Fixed Income Portfolio will be invested in
short and intermediate term fixed income securities. The average
maturity of securities in the Short-Intermediate Fixed Income
Portfolio will be based primarily upon the Investment Manager's
expectations for the future course in interest rates and the then
prevailing price and yield levels in the fixed income market.
The weighted average maturity of the securities in the Portfolio
will generally be between 2 and 5 years. The Investment Manager
will invest the assets in fixed income securities that are rated
at least "A" by Standard & Poor's Corporation, Moody's Investors
Service, Inc. or other industry-recognized rating agencies. See
"Appendix" for an explanation of the ratings.
The corporate bond portfolio part of this Portfolio will be
diversified by investment in bonds issued by different companies
in different industries. There is the risk that corporate bonds
might be called by the issuer if the bond interest rate is higher
than currently prevailing interest rates.
The Short-Intermediate Fixed Income Portfolio may invest part of
its assets in mortgage-related securities represented by pools of
mortgage loans assembled for sale to investors by various
governmental agencies such as the Government National Mortgage
Association ("GNMA") and government-related organizations such as
the Federal National Mortgage Association ("FNMA") and the
Federal Home Loan Mortgage Corporation ("FHLMC"). If the
Short-Intermediate Fixed Income Portfolio purchases a
mortgage-related security at a premium, all or Part of the
premium may be lost if there is a decline in the market value of
the security, whether resulting from changes in interest rates or
prepayments in the underlying mortgage collateral. As with other
interest-bearing securities, the price of such securities is
universally affected by changes in interest rates. However,
though the value of a mortgage-related security may decline when
interest rates rise, the converse is not necessarily true, since
in periods of declining interest rates the mortgages underlying
the securities are more likely to prepay. For this and other
reasons, a mortgage-related security's stated maturity may be
shortened by unscheduled prepayments on the underlying mortgage
and, therefore, it is not possible to predict accurately the
security's return to the Short-Intermediate Fixed Income
Portfolio. In addition, regular payments received in respect of
mortgage-related securities include both principal and interest.
No assurance can be given as to the return the Short-Intermediate
Fixed Income Portfolio will receive when these amounts are
reinvested.
The Short-Term Intermediate Fixed Income Portfolio also may
invest in collateralized mortgage obligations ("CMOs") which are
debt obligations collateralized by mortgage loans or mortgage
pass-through securities. Typically, CMO's are collateralized by
GNMA, FNMA, or FHLMC certificates, but also may be collateralized
by whole loans or private mortgage pass-through securities (such
collateral collectively hereinafter referred to as "Mortgage
Assets"). Payments of principal and interest on the Mortgage
Assets, and any reinvestment income thereon, provide the funds to
pay the debt service on the CMOs. CMOs may be issued by agencies
or instrumentalities of the United States Government, or private
originators of, or investors in, mortgage loans, including
savings and loan associations, mortgage banks, commercial banks,
investment banks and special purpose subsidiaries of the
foregoing.
In a CMO, a series of bonds or certificates is issued in multiple
classes. Each class of CMO's, often referred to as a "tranche,"
is issued at a specific fixed or floating coupon rate and has a
stated maturity or final distribution date. Principal
prepayments on the Mortgage Assets may cause the CMO's to be
retired substantially earlier than their stated maturities or
fixed distribution dates. Interest is paid or accrued on all
classes of CMOs, on a monthly, quarterly or semiannual basis.
The principal of and interest on the Mortgage Assets may be
allocated among the several classes of a series of a CMO in
innumerable ways. In a common structure, payments of principal,
including any principal prepayments, on the Mortgage Assets are
applied to the classes of the series of a CMO in the order of
their respective stated maturities or final distribution dates,
so that no payment of principal will be made on any class of
CMO's until all other classes having an earlier stated maturity
or final distribution date have been paid in full.
It is anticipated that the Short-Intermediate Fixed Income
Portfolio will invest a smaller part of its net assets in
mortgage-related securities than the Long-Intermediate Fixed
Income Portfolio as there are fewer of such securities in the
short to intermediate term maturity range.
The staff of the Securities and Exchange Commission has
determined that certain issuers of CMOs may be investment
companies for purposes of Section 12(d) of the Investment Company
Act of 1940. The Trust will not invest more than 10% of its
total assets in securities issued by issuers considered to be
investment companies or more than 5% of its assets in securities
issued by any single such entity, and will not acquire more than
3% of the voting securities of any single such entity. These
limitations will not materially inhibit the Short-Intermediate
Fixed Income Portfolio's ability to achieve its investment
objective as no more than 15% of the Short-Intermediate Fixed
Income Portfolio's total assets will be invested in CMOs, subject
to the Trust's overall investment restrictions.
The automatic reinvestment of interest income is expected to be
the primary basis for growth in a Unitholder's investment in the
Short-Intermediate Fixed Income Portfolio. The
Short-Intermediate Fixed Income Portfolio also will attempt to
take advantage of undervalued sectors while selling bonds in
overvalued sectors. However, since investments will normally
consist of fixed income securities and mortgage-related
securities, the ability to achieve capital appreciation is
limited. The value of the securities held in the Short-
Intermediate Fixed Income Portfolio will generally vary inversely
with changes in prevailing interest rates. The value of these
securities also may be affected by general market and economic
conditions and by the credit-worthiness of the issuer.
Whenever, in the judgment of the Investment Manager, there is a
high probability that there will be a decline in the fixed income
securities market, part of the assets of the Short-Intermediate
Fixed Income Portfolio may be held in cash or cash equivalents as
a temporary defensive strategy. To the extent that the
Short-Intermediate Fixed Income Portfolio invests in cash or cash
equivalents, it will not be invested in accordance with the
investment policy designed for it to realize its investment
objective. Cash equivalents are short term interest bearing
instruments of the type permitted to be held by the Money Market
Portfolio.
The Money Market Portfolio
The objective of the Money Market Portfolio is to increase
retirement funds by providing a high level of current income with
equal emphasis on stability and liquidity of principal. At least
80% of the assets in the Money Market Portfolio, under normal
circumstances, will have a stated maturity of thirteen months or
less. Investments will be limited to United States dollar
denominated instruments which the Investment Manager has
determined to have minimal credit risk and that are rated, in the
case of fixed income securities, at least "A" by Standard &
Poor's Corporation, Moody's Investors Service, Inc. or other
industry-recognized rating agencies and, in the case of
commercial paper, at least "A-1" by Standard & Poor's Corporation
and "Prime-1" by Moody's Investors Service, Inc. See "Appendix"
for an explanation of the ratings. The yield of the Money Market
Portfolio will rise or fall with changes in prevailing money
market interest rates. The Money Market Portfolio will not
attempt to maintain a stable or constant net asset value.
Investments of the Money Market Portfolio will include the
following securities:
Obligations issued by or guaranteed by the United States
Government its agencies or instrumentalities:
United States Government obligations are bills, notes, bonds and
other debt securities issued by the Treasury which are direct
obligations of the United States Government and differ primarily
in length of their maturity. These obligations are backed by the
full faith and credit of the United States. Agency or instru-
mentality obligations are not direct obligations of the Treasury.
They include notes, bonds and discount notes of United States
Government agencies or instrumentalities. These obligations may
or may not be backed by the full faith and credit of the United
States. In the case of securities not backed by the full faith
and credit of the United States, the Trust must look principally
to the agency issuing or guaranteeing the obligation for ultimate
repayment and may not be able to assert a claim against the
United States itself in the event the agency or instrumentality
does not meet its commitments. Securities that are not backed by
the full faith and credit of the United States include, but are
not limited to, obligations of the Tennessee Valley Authority,
FNMA, and the United States Postal Service, each of which has the
authority to borrow from the United States Treasury to meet its
obligations, and obligations of the Federal Farm Credit System
and the Federal Home Loan Banks, both of whose obligations may be
satisfied only by the individual credits of each issuing agency.
Securities which are backed by the full faith and credit of the
United States include obligations of GNMA, the Farmers Home
Administration and the Export-Import Bank.
Certificates of deposit which are short term, interest bearing
certificates issued by domestic branches of United States banks,
London branches of the United States and foreign banks and United
States branches of foreign banks. These are certificates issued
against funds on deposit in a bank earning a specific rate of
return for a set period of time.
Bankers acceptances of United States or foreign banks which are
drafts or bills of exchange "accepted" by a bank or trust company
as an obligation to pay at maturity.
Commercial paper issued by United States corporations; that is,
unsecured promissory notes which have maturities not exceeding
nine months issued to finance short-term credit requirements
except for 4(2) paper.
Corporate bonds and notes with maturities of less than one year
issued by United States corporations, which are obligations of
the issuing company to repay a set amount of money on a specific
date and to pay interest at a definite rate to maturity.
The Money Market Portfolio, like the Long-Intermediate Fixed
Income Portfolio and the Short-Intermediate Fixed Income
Portfolio, will provide greater stability of Unit value than the
International Value Equity Portfolio, the Growth Equity
Portfolio, the Value Equity Portfolio, and the Balanced
Portfolio, but also will have minimal potential for appreciation
in value and growth of current income over the long term.
Special Risk Considerations
Monies invested in the Portfolios are subject to certain risks.
Since each of the Portfolios will invest in different types of
securities in accordance with their investment objectives, the
risks of participating in the Trust will vary depending on the
Portfolio or Portfolios chosen. Before selecting a Portfolio or
Portfolios for investment of retirement assets of Retirement
Plans, a Participant should assess the risks associated with the
types of investments made by each Portfolio.
The value of interest bearing securities held in the Balanced
Portfolio, the Long-Intermediate Fixed Income Portfolio and the
Short-Intermediate Fixed Income Portfolio will generally vary
inversely with changes in prevailing interest rates, while the
value of equity-based securities held in the Value Equity
Portfolio, the Growth Equity Portfolio and the Balanced Portfolio
will fluctuate as the stock market fluctuates. The yield of the
Money Market Portfolio will rise or fall with changes in
prevailing money market interest rates.
Subject to the Trust's investment restrictions (see "Investment
Restrictions"), each of the Value Equity Portfolio, the Growth
Equity Portfolio, and the Balanced Portfolio may invest up to 10%
of the value of its total assets which are invested in
equity-based securities in equity-based dollar-denominated
American Depository Receipts which are Publicly traded in the
United States on exchanges or over-the-counter and are issued by
domestic banks.
Investing in securities issued by foreign corporations or
entities (including through ADR's), involves considerations and
possible risks not typically associated with investing in
obligations issued by domestic corporations. The values of
foreign investments are affected by changes in currency rates or
exchange control regulations, application of foreign tax laws,
including withholding taxes, changes in governmental
administration or economic or monetary policy (in the United
States or abroad) or changed circumstances in dealings between
nations. Costs may be incurred in connection with conversions
between various currencies.
Dividends and Distributions
The Trust does not intend to declare or pay dividends from its
net investment income or to make distributions of any gains
realized from sales of portfolio securities. Income on, and
gains realized from the sale of, portfolio securities of each
Portfolio will be added to the total asset value of the assets of
such Portfolio and losses realized from the sale of Portfolio
securities of each Portfolio will be subtracted from the total
asset value of the assets of such Portfolio.
INVESTMENT RESTRICTIONS
The following restrictions and fundamental policies cannot be
changed for any Portfolio without the approval of Participating
Trusts holding a majority of the outstanding Units of that
Portfolio. Absent such approval, the Trust may not:
(a) Purchase securities of any issuer (except securities issued
or guaranteed as to principal or interest by the United States
Government, its agencies and instrumentalities) if as a result
more than 5% of the value of the total assets of any Portfolio
would be invested in the securities of such issuer or all
Portfolios together would own more than 10% of the outstanding
voting securities of such issuer; for purposes of this
limitation, identification of the "issuer" will be based on a
determination of the source of assets and revenues committed to
paying dividends or meeting interest and principal payments on
each security;
(b) Pledge, mortgage or hypothecate the assets of any Portfolio;
(c) Make loans to other persons, except that a Portfolio may
make time or demand deposits with banks, provided that time
deposits shall not have an aggregate value in excess of 10% of a
Portfolio's total assets, and may purchase bonds, debentures or
similar obligations that are publicly distributed;
(d) Purchase or sell commodities or commodity contracts or
futures contracts;
(e) Purchase any securities for any Portfolio that would cause
25% or more of the value of the Portfolio's total assets at the
time of such purchase to be invested in the securities of one or
more issuers conducting their principal activities in the same
industry, provided that there is no limitation with respect to
investments in obligations issued or guaranteed by the United
States Government, its agencies and instrumentalities or, with
respect to the Money Market Portfolio, obligations of domestic
branches of United States banks; or
(f) Invest the assets of any Portfolio in securities that are
not readily marketable.
If a percentage restriction is adhered to at the time of
investment, a later increase or decrease in percentage resulting
from a change in values of assets will not constitute a violation
of that restriction.
Additional investment restrictions are set forth in the Statement
of Additional Information.
REDEMPTIONS
All or a portion of the Units held in a Portfolio can be redeemed
(withdrawn) upon tender to the Association. Redemptions may be
effected by filing a written notice to the Association, 6230
Claremont Avenue, Oakland, CA 94618 at least one business day
prior to such Valuation Date.
The redemption price will be the net asset value per Unit on the
Valuation Date next determined following receipt by the
Association of a Participating Trust's satisfactorily completed
instructions for a redemption (the "redemption Valuation Date").
See "Valuation of Units." The value of a Unit upon redemption may
be more or less than the value when purchased, depending upon the
net asset value of the Portfolio at the time of the redemption.
Redemptions are subject to determination that the redemption
instructions are properly completed, including specification as
to the number of Units or dollar amounts to be redeemed, the
specific Portfolio or Portfolios from which the Units or dollar
amounts are to be withdrawn, the completion of distribution
documents, if applicable, specification of the Retirement Plan
requesting the redemption, and execution of the redemption
instructions by the Plan Trustee or Participant, as the case may
be.
While payment for Units redeemed normally will be made in cash,
if conditions exist making payment in cash undesirable, the
Custodial Trustee may make payment for the Units redeemed wholly
or Partly in securities or other property of the Portfolio,
provided that all distributions made as of any one Valuation Date
shall be made pro rata and on the same basis. In the event
payment for Units redeemed is made wholly or Partly in securities
or other property of the Portfolio, the Trust may elect to be
governed by Rule 18f-1 under the Investment Company Act, in which
event the Trust shall commit itself to pay in cash all requests
for redemption by any Participating Trust during any 90-day
period to the lesser of (i) $250,000 or (ii) 1% of the net asset
value of the Trust at the beginning of such period. The
securities will be valued as described in "Valuation of Units"
below. Participating Trusts will incur brokerage commissions in
selling the securities received in kind.
Payment for Units redeemed will be made to the Plan Trustee or
Participant, as the case may be, no more than seven business days
after the redemption Valuation Date. The payment may be delayed
or the right of redemption suspended at a time when (i) trading
on the New York Stock Exchange is restricted or the Exchange is
closed, for other than customary weekends and holidays, (ii) an
emergency, as defined by rules of the Securities and Exchange
Commission, exists making disposal of Portfolio securities or
determination of the value of the net assets of the Portfolio not
reasonably practicable, (iii) the Securities and Exchange
Commission has by order permitted such suspension or (iv) bank
holidays.
If at any time a Participating Trust ceases to be eligible for
investment in the Trust, the Custodial Trustee will redeem all
Units of such Participating Trust at the net asset value on the
Valuation Date next determined after the Custodial Trustee is
apprised of such disqualification. Payment for Units redeemed by
the Custodial Trustee upon disqualification will be made in the
same manner as described above for payment for Units redeemed
upon request.
EXCHANGES
Units in any Portfolio may be exchanged without cost for Units in
any other Portfolio as of any Valuation Date, thus effecting
transfer of all or a portion of the retirement assets of a
Retirement Plan from one Portfolio to another. Exchanges may be
effected by filing a written notice to the Association, 6230
Claremont Avenue, Oakland, CA 94618, at least one business day
prior to such Valuation Date.
Any exchange will be based on the respective net asset value of
the Units involved on the Valuation Date next determined after
receipt by the Association of a Participating Trust's
satisfactorily completed instructions for an exchange.
Instructions for an exchange include specification as to the
number of Units or dollar amounts to be exchanged, the specific
Portfolio or Portfolios from and to which the Units or dollar
amounts are to be exchanged, specification of the Retirement Plan
requesting the exchange, and execution of the exchange instruc-
tions by the Plan Trustee or Participant, as the case may be.
VALUATION OF UNITS
Net asset value per Unit for each Portfolio is determined by
dividing the total value of the Portfolio's assets, less any
liabilities, including the fees payable to the Custodial Trustee,
the Investment Managers and the Association, by the number of
outstanding Units of the Portfolio.
The Custodial Trustee determines the value of the assets held in
each Portfolio as of 10:00 a.m., San Francisco, California, time
(or at such other time as may be determined by the Supervisory
Committee) on each Valuation Date on which the New York Stock
Exchange is open for trading. Except for debt securities with
remaining maturities of 60 days or less, assets for which market
quotations are available are valued at their market value based
upon such market quotations. Stocks, negotiable bonds and other
obligations not listed on any exchange, or where the principal
market is over the counter, shall be valued at the mean between
the bid and asked price (if sales are effected on a particular
date) or, if no sale is made on the relevant date, at the closing
bid on such date.
Debt securities with remaining maturities of 60 days or less are
valued on the basis of amortized cost. Amortized cost valuation,
which may be used so long as it approximates market value,
involves valuing a security at its cost and adding or
subtracting, ratably to maturity, any discount or premium,
regardless of the impact of fluctuating interest rates on the
market value of the security. When approved by the Supervisory
Committee, certain securities may be valued on the basis of
valuations provided by an independent pricing service when such
prices are believed to reflect the fair market value of such
securities. In the absence of an ascertainable market value,
assets are valued at the fair value as determined by the
Supervisory Committee.
PERFORMANCE
From time to time each of the Portfolios other than the Money
Market Portfolio may advertise their total return. THIS TYPE OF
PERFORMANCE WILL BE BASED ON HISTORICAL EARNINGS AND WILL NOT BE
INTENDED TO INDICATE FUTURE PERFORMANCE. These return figures
are determined according to a formula prescribed by the
Securities and Exchange Commission.
Total return is calculated based upon the difference between the
net asset value of a Unit at the beginning of a period and its
net asset value at the end of the period. The result may be
expressed as an average annual compounded rate of return achieved
during the period quoted, which is the yearly rate of return
that, when applied evenly to each annual period during the period
quoted and compounded, would produce the return for the period
quoted. Alternatively, the result may be expressed as the
cumulative rate of return for the entire period. Unlike a yield
or effective yield quotation, total return reflects the effect of
all capital changes in net asset value.
Performance quotations are based on historical results and should
not be considered as representative of future performance, which
will vary based upon expenses and income of the Portfolios and
changes in the values of their holdings. These factors and
possible differences in methods used to quote performance should
be considered when comparing performance quotations for the
Portfolios with quotations published by other investment
companies or other investment products.
INVESTMENT MANAGEMENT AND ADMINISTRATION ARRANGEMENTS
The Supervisory Committee
The business and affairs of the Trust are managed under the
direction of the Supervisory Committee. The Supervisory
Committee will perform duties and undertake responsibilities
similar to those of a board of directors of an investment
company. The Supervisory Committee may from time to time engage
a consultant to assist in monitoring the performance of the
Investment Managers and to educate Participants as to the
investment objectives, policies and restrictions of the
Portfolios.
The Custodial Trustee
Subject to the supervision and direction of the Supervisory
Committee, the Custodial Trustee shall provide custodial services
to the Trust, including maintaining physical possession or
control of the assets of the Portfolios, collecting and receiving
income on the assets of the Portfolios, calculating the total
asset value of each Portfolio as of each Valuation Date, and
paying certain expenses of the Trust. The Trust has no transfer
agent or dividend-paying agent. If the Trust requires these or
similar services, they will be provided by the Custodial Trustee.
As compensation for its services as Custodial Trustee under the
Trust, the Custodial Trustee is Paid a quarterly fee at the
annual rate of 1/2 of 1% of the first $2,000,000 of the aggregate
fair market value of the assets of the combined Portfolios, 1/4
of 1% of the aggregate fair market value of such assets in excess
of $2,000,000 but less than $10,000,000, and 1/8 of 1% of such
assets in excess of $10,000,000, determined as of the last
business day of each calendar quarter. The Custodial Trustee is
paid an additional annual administrative charge of approximately
$16,000 for certain Unitholder transaction services including
plan set-up and maintenance fees, custody fees for individual
securities and charges for disbursements, processing, reporting
and preparing tax forms.
The Custodial Trustee is a national banking association which
provides commercial banking and trust services throughout the
State of California. The offices of the Trustee are located at
420 Montgomery Street, San Francisco, California. The services
of the Trustee are Provided through its Business Trust and
Investment Services Division which as of January 31, 1996, had
approximately $912,600,000 of client assets under management.
The Administrator
Under the Administrative Services Agreement, the Association
provides certain administrative and accounting services to the
Trust. Subject to the supervision and direction of the
Supervisory Committee, the Association suggests to the
Supervisory Committee the appointment of Investment Managers for
each Portfolio, performs accounting and record keeping functions
for the Participating Trusts, collects the contributions and
investment instructions received from the Participating Trusts
for forwarding to the Custodial Trustee, approves and directs
allocation of the fees and expenses among the Portfolios and the
Trust, prepares and distributes communications to the
Participating Trusts and Participants, and generally acts as
liaison between the Participating Trusts and the Custodial
Trustee. The Association pays the costs of necessary employees,
office space and facilities for these services.
As compensation for its services as Administrator, the
Association is paid a quarterly fee at the annual rate of 0.45%
of the aggregate fair market value of the assets of the combined
Portfolios, determined as of the last business day of each
calendar quarter, plus $1,000 per month. The Administrator will
pay for advertising and marketing services on behalf of the Trust
out of the Association's general assets.
The Association is a nonprofit organization. Its members consist
primarily of physicians practicing medicine in the State of
California.
The Investment Management Agreements
Under the Investment Management Agreements (each, an "Agreement")
between the Trust and the Investment Managers described below,
each Investment Manager, as investment adviser, will manage the
investment of the assets of specified Portfolios, as set forth in
the respective Agreements, in conformity with the stated
investment objectives and policies of such Portfolios and the
overall investment objectives, policies, and restrictions of the
Trust. Pursuant to each Agreement, the Investment Managers are,
subject to the authority of the Supervisory Committee,
responsible for management of the assets of the specified
Portfolios. Information regarding the Investment Managers is as
follows:
Lazard Freres & Company ("Lazard")'s address is One Rockefeller
Plaza, New York, New York 10020. Lazard is responsible for the
overall management of the International Value Equity Portfolio
and is paid a quarterly management investment fee for its
services to such Portfolio at the annual rate of 1.0% of the
aggregate fair market value of the first $1,000,000 of the assets
of such Portfolio and 3/4 of 1.0% of such assets in excess of
$1,000,000, determined as of the last business day of each
calendar quarter.
The Burridge Group, Inc. ("Burridge")'s address is 115 South
LaSalle Street, Chicago, Illinois 60603. Burridge is responsible
for overall management of the Growth Equity Portfolio and is paid
a quarterly management investment fee for its services to such
Portfolio at the annual rate of 1.0% of the aggregate fair market
value of the first $1,000,000 of the assets of such Portfolio and
3/4 of 1.0% of such assets in excess of $1,000,000 determined as
of the last business day of each calendar quarter. The fees
charged by Burridge are higher than those paid by most other
investment companies.
Towneley Capital Management. Inc. ("Towneley")'s address is 144
East 30th Street, New York, New York 10016. Towneley is
responsible for overall management of the Value Equity Portfolio,
and, except as described below, is paid a quarterly investment
management fee for its services to such Portfolio at the annual
rate of 1.0% of the aggregate fair market value of the assets of
such Portfolio. The asset value is determined as of the last
business day of each calendar quarter. The fees charged by
Towneley are higher than those paid by most other investment
companies.
Guardian Investment Management ("Guardian")'s address is 44
Montgomery, Suite 1300, San Francisco, California 94104.
Guardian is responsible for overall management of the Balanced
Portfolio and is paid a quarterly investment management fee for
its services to the Balanced Portfolio at the annual rate of 1.0%
of the aggregate fair market value of the first $250,000 of the
assets of such Portfolio and 6/10 of 1.0% of such assets in
excess of $250,000, determined as of the last business day of
each calendar quarter. The fees charged by Guardian are higher
than those paid by most other investment companies.
Scudder, Stevens & Clark ("Scudder")'s address is 41st Floor, 101
California Street, San Francisco, California 94111. Scudder is
responsible for overall management of the Long-Intermediate Fixed
Income Portfolio, the Short-Intermediate Fixed Income Portfolio
and the Money Market Portfolio and is paid a quarterly investment
management fee for its services to these three Portfolios at the
annual rate of 1/2 of 1% of the aggregate fair market value of
the assets in these Portfolios, determined as of the last
business day of the calendar quarter.
Expenses of the Trust
The Association will pay: (i) all costs and expenses arising in
connection with the organization of the Trust, including the
initial registration and qualification of the Trust and the Units
under federal and state law; (ii) all expenses of accounting for
Participating Trusts; (iii) all costs and expenses of keeping
books and records; and (iv) all costs and expenses of determining
the net asset value of the Units. The Custodial Trustee will pay
(i) all expenses of its employees, office space and facilities
necessary to carry out its duties under the Declaration of the
Trust; and (ii) expenses of valuing the total assets of the
Portfolios. Each of the Investment Managers will pay all
expenses incurred by it in connection with acting as investment
adviser to the respective Portfolios, other than costs (including
taxes and brokerage commissions) of securities purchased for such
Portfolios.
The Custodial Trustee determines the total value of the assets of
the Portfolios as of each Valuation Date and submits the
resulting Statement of Accounts for each Portfolio to the
Association. The Association determines the accrued expenses for
each Portfolio and the Trust as of each Valuation Date. The
Association then calculates the Unit value for each Portfolio by
reducing the total value of the assets of such Portfolio as set
forth in the Statement of Accounts by the accrued expenses for
such Portfolio. The Custodial Trustee is not responsible for
determining the Unit value.
Except for the expenses described above that have been assumed by
the Association, the Investment Managers and the Custodial
Trustee, all expenses incurred in administration of the Trust are
charged to the Trust including: (i) the Custodial Trustee's
management fee, the Administrator's fee and the Investment
Managers' fees; (ii) interest charges; (iii) taxes;
(iv) brokerage commissions; (v) expenses of continuing registra-
tion and qualification of the Trust and the Units under federal
and state law; (vi) expenses of the issue and redemption of
Units; (vii) fees and disbursements of independent accountants,
consultants and legal counsel; (viii) expenses of preparing,
printing and mailing prospectuses, reports, proxies, notices and
statements sent to Participating Trusts; (ix) expenses of
meetings of Participating Trusts; (x) insurance premiums; and
(xi) nonrecurring expenses including any expenses relating to
litigation to which the Trust or the Custodial Trustee, as
trustee of the Trust, is a party.
INCOME TAX INFORMATION
Tax Treatment of the Trust
In a published ruling (Revenue Ruling 81-100), the Internal
Revenue Service ruled that (i) a group trust organized for the
collective investment of the assets of Retirement Plans is exempt
from federal income taxation and (ii) the Participating Trusts in
a group trust do not lose their tax exempt status because they
participate in a group trust if the following conditions are
satisfied:
(a) The group trust is itself adopted as a part of each
Retirement Plan;
(b) The group trust instrument expressly limits participation to
IRAs and Qualified Plans;
(c) The group trust instrument prohibits that part of its corpus
or income that equitably belongs to any IRA or Qualified Plan
from being used for or diverted to any purposes other than for
the exclusive benefit of the individual or the employees,
respectively, or their beneficiaries who are entitled to benefits
under such Retirement Plan;
(d) The group trust instrument prohibits assignment by a
Participating Trust of any part of its equity or interest in the
group trust; and
(e) The group trust is created or organized in the United States
and is maintained at all times as a domestic trust in the United
States.
In order to maintain the tax-exempt status of the Trust, the
Trust provides that only Retirement Plans are eligible to invest
in the Trust. An IRA which loses its tax exemption or a
Qualified Plan which is disqualified must redeem its investment
in the Trust and may be taxed on the earnings of the Trust
attributable to such investments. The earnings of the Trust are
also taxable when a distribution is made from a Retirement Plan.
The explanation of "Tax Treatment of Participating Trusts" below,
therefore, emphasizes requirements which affect an IRA's exemp-
tion or Qualified Plan's qualification or which may cause a
distribution to be made.
Tax Treatment of Participating Trusts
The federal income taxation of Retirement Plans involves complex
and often changing rules. Accordingly, the information below
only summarizes some of the relevant material regarding
Retirement Plans. For more detailed information, investors
should read carefully the Disclosure Statement for their IRA or
summary plan description for their Qualified Plan and should
consult their own tax advisors for personal advice.
IRAs
Contributions.
Generally, an individual may contribute up to the lesser of
$2,000 or 100% of compensation (earned income if the individual
is self-employed) to his IRA ($2,250 if a contribution is made
for a nonworking spouse). If the individual (and his spouse, if
applicable) is not an active participant in an employer-sponsored
Qualified Plan or SEP, the individual (and his spouse, if
applicable) can deduct the entire contribution. If the
individual (or spouse, if applicable) is such an active
Participant, and the individual's income (and his spouse's
income, if applicable) exceed certain limits under the Code, the
deductible amount may be reduced or eliminated.
Taxpayers whose maximum deductible contributions are reduced or
eliminated may make nondeductible IRA contributions up to the
limit described above. Earnings of an IRA attributable to
nondeductible contributions are not taxed until distributed and
may be invested in the Trust.
Contributions in excess of the statutory limits (the total of
allowable deductible and nondeductible contributions) are subject
to a tax of 6% of the excess amount, but may be invested in the
Trust. The tax can be avoided by withdrawing the excess, along
with any earnings on such excess, before the deadline for filing
federal income tax returns for the tax year in which the excess
contributions were made.
Transfer and Rollover Contributions.
A person who receives his interest in a Qualified Plan in one
taxable year upon terminating employment (if not self-employed),
incurring a disability (if self-employed) or attaining age
59 and one-half or who receives his remaining interest when a
Qualified Plan terminates, may roll over all or part of that
distribution to another Qualified Plan or IRA tax-free if
contributed no later than the 60th day after the day on which
the distribution is received. A person who receives at least
50% of his interest under a Qualified Plan after terminating
employment or incurring a disability in one taxable year may
roll over all or a part of that distribution tax-free to an IRA,
subject to the 60-day requirement. A person who receives a
distribution of the entire amount of his IRA may roll over
tax-free all or part of the distribution to another IRA, subject
to the 60-day limit but not more than once during each 12 month
period. Assets may be transferred tax-free from one IRA trustee
to another IRA trustee with no limitation on frequency.
Income Accumulation.
Under the Code, an IRA is exempt from taxation on income earned.
Participants are not taxed on IRA earnings until a distribution
is made or deemed to be made.
Distributions.
Distributions from an IRA (other than distributions of
nondeductible IRA contributions) are taxed as ordinary income in
the year in which they are received. A distribution made before
the Participant reaches the age of 59 and one-half may be subject
to an additional 10% tax, except in the case of the death
or disability or certain other exceptions. Distributions must
commence to a Participant before April 1 of the calendar year
following the calendar year in which the Participant reaches the
age of 70 and one-half and must equal or exceed the minimum
amount determined under proposed Treasury Regulation Section
1.408-8. The failure to make such minimum distributions each
year subjects the Participant to a penalty tax equal to 50% of
the under-distribution.
If a Participant engages in any of certain specified prohibited
transactions with his IRA, such as using the IRA as security for
a loan, all of the assets of the IRA will be deemed to have been
distributed on the first day of the year in which the transaction
occurs.
SEPs
If an employer adopts a SEP under IRS Form 5305-SEP, the employer
may contribute up to the lesser of (i) 15% of compensation
(determined without regard to the SEP contribution) or (ii)
$30,000 on behalf of an employee to an IRA. These amounts are
not included in the employee's gross income. The amounts allowed
are in addition to those that an employee can contribute to an
IRA. The IRA rules on income accumulation and distributions
described above apply to the employee's IRA.
Employer contributions must bear a uniform relationship to the
total compensation of each employee and must be made on behalf of
each employee age 21 or over who has worked for the employer
during any part of three of the preceding five calendar years and
who has earned at least $300 in the year of the contribution.
Qualified Plans
A Qualified Plan may be adopted by an employer for its employees,
by self-employed individuals, by partners in a partnership or by
a corporation. Qualified Plans are either defined benefit plans
(e.g., pension plans) of defined contribution plans (e.g., profit
sharing, money purchase pension plans or stock bonus plans). The
discussion below concerns defined contributions plans.
Contributions.
The maximum allowed annual contribution to a Qualified Plan for
each Participant is currently the lesser of (i) 25% of earned
income (or compensation) or (ii) $30,000 (as adjusted). All
employer contributions and voluntary employee contributions count
towards the above limits. An employer may not contribute more
than 15% of all Participants' compensation in the aggregate (or
up to 25% under certain circumstances). Under a 401(k) plan,
employees can reduce their salary and contribute the deferred
amount to the plan. The amount of such deferral is currently
limited to $9,500 for 1996 and is subject to complex
nondiscrimination rules. The Code provides for additional limits
on the maximum contributions that may be made by or on behalf of
individuals who are participants in more than one Qualified Plan.
Coverage Requirements.
Under the Code, a Retirement Plan qualifies for tax-exempt status
under Code Sections 401 and 501 if its eligibility requirements
do not include requirements that an employee be older than 21 or
have been employed for more than one year of service (two years
of service if employees are immediately 100% vested for a plan
other than a 401(k) plan). A Qualified Plan must also meet
certain requirements as to the percentage of employees who are
covered and must not discriminate in operation. A Qualified Plan
must (i) benefit at least 70% of all non-highly compensated
employees; (ii) benefit a percentage of non-highly compensated
employees that is at least 70% of the percentage of highly
compensated employees benefiting under the plan; or (iii) meet a
test that considers both employer classifications and the level
of benefits of non-highly compensated employees relative to those
of highly compensated employees. It must also cover at least the
lesser of 50 employees or 40% of all employees. The Tax Reform
Act of 1986 (the "1986 Act") defines the terms "highly" and "non-
highly" compensated employees.
Vesting Requirements.
Each Participant must become vested in the contributions
allocated to his or her account under a Qualified Plan under one
of three basic schedules: (i) 100% immediate; (ii) 100% after
completing not more than five years of service; or (iii) 20%
after completing three years of service and an additional 20%
each year thereafter.
Income Accumulation.
Under the Code, a Qualified Plan is exempt from taxation on
income earned. Participants are not taxed on income earned by
the plan until they receive or are deemed to receive a
distribution.
Distributions.
Under the Code, distributions from a Qualified Plan are taxed as
ordinary income in the year in which received. Distributions
before age 59 and one-half may be subject to a 10% penalty tax
and are restricted to certain events in the case of 401(k) plans
and money purchase pension plans. Certain lump-sum distributions
may qualify for more favorable tax treatment, including forward
averaging.
A plan, in order to be qualified, must satisfy minimum
distribution rules. Distributions generally must begin to be
made to a participant before April 1 of the calendar year
following the calendar year in which the participant attains age
70 and one-half. Under the 1986 Act, the failure to make such
distributions subjects the participant to a penalty tax equal to
50% of the under-distribution.
A loan from a Qualified Plan to a participant which exceeds
limits on its amount or duration will be deemed a distribution.
Loans cannot exceed the lesser of $50,000 or half the employee's
vested benefits, less the highest loan balance in the previous
twelve months. They must be repaid in at least quarterly
installments over no more than five years unless the proceeds are
used to purchase a principal residence for the participant, in
which case the term may be extended.
OTHER INFORMATION
Description of the Units and Voting Rights
A Participating Trust exercises the voting rights of the Units
and is generally entitled to one vote for each full Unit (and a
fractional vote for each fractional Unit) outstanding on the
books of the Trust in the name of such Participating Trust or its
nominee. However, when voting on a matter which affects more
than one Portfolio, each Participating Trust exercises power
equal to the dollar value of the Units it holds. This allows
more equitable representation between Participating Trusts which
hold high dollar value Units and those which hold units of a
Portfolio with a lower Unit value. The Units have noncumulative
voting rights, which means that the holders of more than 50% of
the Units voting in the election for members of the Supervisory
Committee can elect 100% of the members if they choose to do so.
On any matter submitted to a vote of Participating Trusts, all
Units of the Portfolios then issued, outstanding and entitled to
vote will be voted in the aggregate and not by Portfolio, except
(i) when required by the Investment Company Act, Units shall be
voted by Portfolio, and (ii) when the matter affects an interest
of less than all of the Portfolios, then only Participating
Trusts that own Units of the affected Portfolio or Portfolios
shall be entitled to vote. Units vote in the aggregate on such
matters as election of members of the Supervisory Committee and
by Portfolios on such matters as the approval of the Investment
Management Agreements and changing certain investment
restrictions relating to specific Portfolios.
The Rules and Procedures of the Supervisory Committee require the
calling of a meeting of the Participating Trusts when ordered by
a majority of the members of the Supervisory Committee or when
requested in writing by Participating Trusts holding 25% of the
Units entitled to vote at the meeting. The Secretary of the
Supervisory Committee has undertaken to call a meeting of the
Participating Trusts for the purpose of voting on the question of
removal of the Custodial Trustee or members of the Supervisory
Committee upon the written request of Participating Trusts
holding 10% of the Units entitled to vote at such a meeting, and
in connection with such a meeting to assist in communications
among such Participating Trusts as required by the Investment
Company Act. Participating Trust inquiries should be in writing
addressed to the Association, 6320 Claremont Avenue, Oakland, CA
94618.
Unit Value Adjustments
As of July 1, 1996, the unit values of the Value Equity
Portfolio, the Balanced Portfolio, the Long-Intermediate Fixed
Income Portfolio, the Short Intermediate Fixed Income Portfolio,
and the Money Market Portfolio will be adjusted through a unit
split so that as of July 1, 1996, the units of each of these
Portfolios hall be $10.00. The number of units in each Portfolio
and the number of units held by each Participating Trust will be
determined by the net asset value of each Portfolio as of June
30, 1996. The Value of each Participating Trust's Investment in
each Portfolio immediately before and after the unit split will
remain the same.
Termination of the Trust
While the Trust has been established to continue for such time as
may be necessary to accomplish the purpose for which it was
created, at the direction of the Supervisory Committee and
subject to approval of Participating Trusts, the Custodial
Trustee may (i) sell the assets of the Trust to another trust or
corporation in exchange for cash or securities of such trust or
corporation, and distribute such cash or securities ratably among
the Participating Trusts; or (ii) sell and convert into money the
assets of the Trust and distribute the proceeds remaining after
payment of liabilities ratably among the Participating Trusts.
Upon completion of the distribution of the remaining proceeds or
the remaining assets of the Trust, the Trust will terminate and
the Custodial Trustee will be discharged of any and all further
liabilities and duties and the right, title and interest of all
parties will be cancelled and discharged.
The Supervisory Committee may direct the Custodial Trustee to
terminate any Portfolio at any time and no further admissions
will be permitted without the necessity of obtaining shareholder
approval. Upon making provision for the payment of all
outstanding obligations, taxes and other liabilities, accrued or
contingent, of such Portfolio, the Custodial Trustee shall
distribute the remaining assets of the Portfolio ratably among
the Participating Trusts owning outstanding Units of the
Portfolio.
Counsel and Independent Accountants
Hassard Bonnington, as counsel for the Trust, has rendered its
opinion as to certain legal matters regarding the due
authorization and valid issuance of the Units of beneficial
interest in the Portfolios being sold pursuant to this
Prospectus. Hassard Bonnington is currently acting and will
continue to act as legal counsel to the Association in various
matters. Coopers & Lybrand L.L.P., independent accountants of
the Trust, 1999 Harrison, Oakland, CA 94612, have been selected
as independent auditors of the Trust. Coopers & Lybrand L.L.P.
will conduct an annual audit of each Portfolio, consult with the
Trust as to matters of accounting, regulatory filings, and
federal and state income taxation.
Additional Information
The Trust will issue to Plan Trustees or Participants, as
applicable, semiannual reports containing a list of the
securities held by the Portfolios, and unaudited financial
statements and annual reports containing a list of the securities
held by the Portfolios and financial statements examined by
auditors approved annually by the Participating Trusts or the
Supervisory Committee.
<PAGE>
For further information call PROSPECTUS
ACCMA, 6230 Claremont Avenue,
Oakland, CA 94618, at
(510) 654-5383, Monday through
Friday, 9:00 a.m. to 5:00 p.m. April 30, 1996
To move funds among
ACCMA, call (510) 654-5383,
Monday through Friday,
9:00 a.m. to 5:00 p.m.
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
APPENDIX
Description of Standard & Poor's Corporation's corporate debt
ratings of A or better:
AAA -- Debt rated AAA has the highest rating assigned by Standard
& Poor's Corporation. Capacity to pay interest and repay
principal is extremely strong.
AA -- Debt rated AA has a very strong capacity to pay interest
and repay principal and differs from the highest rated issues
only in small degree.
A -- Debt rated A has a strong capacity to pay interest and repay
principal although it is somewhat more susceptible to the adverse
effects of changes in circumstances and economic conditions than
debt in higher rated categories.
Description of Moody's Investors Service, Inc.'s long-term debt
ratings of A or better:
Aaa -- Fixed Incomes that are rated Aaa are judged to be of the
best quality. They carry the smallest degree of investment risk
and are generally referred to as "gilt-edged." Interest payments
are protected by a large or by an exceptionally stable margin and
principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most
unlikely to impair the fundamentally strong position of such
issues.
Aa -- Fixed Incomes that are rated Aa are judged to be of high
quality by all standards. Together with the Aaa group they
comprise what are generally known as high-grade bonds. They are
rated lower than the best bonds because margins of protection may
not be as large as in Aaa securities or fluctuation of protective
elements may be of greater amplitude or there may be other
elements present that make the long term risks appear somewhat
larger than the Aaa securities.
A -- Fixed Incomes that are rated A possess many favorable
investment attributes and are to be considered as upper-medium
grade obligations. Factors giving security to principal and
interest are considered adequate, but elements may be present
that suggest a susceptibility to impairment some time in the
future.
Commercial paper rated A by Standard & Poor's Corporation is
regarded as having the greatest capacity for timely payment.
Issues in this category are delineated with the numbers l and 2
to indicate the relative degree of safety.
A-1 -- This designation indicates that the degree of safety
regarding timely payment is either overwhelming or very strong.
Those issues determined to possess overwhelming safety
characteristics will be denoted with a plus (+) sign designation.
A-2 -- Capacity for timely payment on issues with this
designation is strong. However, the relative degree of safety is
not as high as for issues designated "A-1."
Commercial paper rated prime by Moody's Investors Service, Inc.
has the following characteristics:
Issuers rated Prime-1 (or supporting institutions) have a
superior ability for repayment of senior short term debt
obligations. Prime-1 repayment ability will often be evidenced
by many of the following characteristics:
Leading market positions in well-established industries.
High rates of return on funds employed.
Conservative capitalization structures with moderate reliance
on debt and ample asset protection.
Broad margins in earnings coverage of fixed financial charges
and high internal cash generation.
Well-established access to a range of financial markets and
assured sources of alternate liquidity.
Issuers rated Prime-2 (or supporting institutions) have a strong
ability for repayment of senior short term debt obligations.
This will normally be evidenced by many of the characteristics
cited above but to a lesser degree. Earnings trends and coverage
ratio, while sound, may be more subject to variation.
Capitalization characteristics, while still appropriate, may be
more affected by external conditions. Ample alternate liquidity
is maintained.
PART B
STATEMENT OF ADDITIONAL INFORMATION
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
This Statement of Additional Information is not a prospectus and
should be read only in conjunction with the Prospectus for the
Trust. This Statement of Additional Information contains certain
additional and supplemental information to that presented in the
Prospectus dated April 30, 1996, and it does not repeat all of
the information with respect to the Trust contained in the
Prospectus. A copy of the Prospectus may be obtained by writing
to Alameda-Contra Costa Medical Association, 6230 Claremont
Avenue, Oakland, CA 94618, ATTN: Jim Alexander, Program
Coordinator or by calling (510) 654-5383.
Please read and retain this Statement of Additional Information
for future reference.
April 30, 1996
TABLE OF CONTENTS
Page
GENERAL INFORMATION B-1
ADDITIONAL INVESTMENT RESTRICTIONS B-1
VALUATION OF UNITS B-3
MANAGEMENT OF THE TRUST B-4
PORTFOLIO TRANSACTIONS B-12
PERFORMANCE INFORMATION B-14
FINANCIAL STATEMENTS B-18
PAGE
<PAGE>
GENERAL INFORMATION
The Alameda-Contra Costa Medical Association Collective
Investment Trust for Retirement Plans (the "Trust") is an open-
end diversified management investment company that currently
offers seven Portfolios, designated as the International Value
Equity Portfolio, the Growth Equity Portfolio, the Value Equity
Portfolio, the Balanced Portfolio, the Long-Intermediate Fixed
Income Portfolio, the Short-Intermediate Fixed Income Portfolio
and the Money Market Portfolio, to provide diversified investment
opportunities for Qualified Plans and IRAs. The Trust may offer
at any time one or more additional Portfolios having investment
objectives and policies different from the seven Portfolios
currently offered. Wells Fargo Bank, N.A. ("Wells Fargo") is the
Custodial Trustee of the Trust. The Trust was established under
a Declaration of Trust dated February 9, 1990, and has no prior
history.
Capitalized terms used herein have the same meaning as in the
Prospectus.
ADDITIONAL INVESTMENT RESTRICTIONS
The following restrictions and fundamental policies are in
addition to those set forth in the Prospectus. They cannot be
changed for any Portfolio without the approval of Participating
Trusts holding a majority of the outstanding Units of that
Portfolio. Absent such approval, the Trust may not:
(a) Borrow money for any Portfolio except for temporary
emergency purposes and then only in an amount not exceeding 5% of
the value of the total assets of that Portfolio. Any borrowings
in any Portfolio before making investments for that Portfolio,
and interest paid on such borrowings will reduce income;
(b) Issue senior securities;
(c) Underwrite any issue of securities;
(d) Purchase or sell real estate or real estate mortgage
loans, but this shall not prevent investments in instruments
secured by real estate or interests therein or in marketable
securities of issuers that engage in real estate operations;
(e) Purchase on margin or sell short;
(f) Purchase or retain securities of an issuer if members of
the Supervisory Committee, each of whom own more than 1/2 of 1%
of such securities, together own more than 5% of the securities
of such issuer;
(g) Purchase or retain securities of any other investment
company (except in connection with a merger, consolidation,
acquisition or reorganization) if after such purchase (i) the
Trust will own more than 3% of the total outstanding voting
securities of such other investment company; or (ii) the securi-
ties of such other investment company have an aggregate value in
excess of 5% of the value of the Trust; or (iii) securities
issued by all investment companies have a aggregate value in
excess of 10% of the Trust;
(h) Invest in or sell put, call, straddle or spread options
or interests in oil, gas or other mineral exploration or
development programs; or
(i) Purchase or retain securities of foreign issuers, except
equity-based dollar-denominated American Depository Receipts
("ADR"), which are publicly traded in the United States on
exchanges or over-the-counter and are issued by domestic banks,
in an amount not exceeding 10% of the value of the total assets
of a Portfolio invested in equity-based securities (except
however the 10% of value limitation shall not apply to the
International Value Equity Portfolio); or
(j) Purchase or retain repurchase agreements or reverse
repurchase agreements.
The vote of the majority of the outstanding Units means the vote,
at a duly called annual or special meeting, (A) of 67% or more
of the Units present at such meeting, if Participating Trusts
holding more than 50% of the Units are present or represented by
proxy; or (B) of more than 50% of the Units, whichever is less.
If a percentage restriction is adhered to at the time of
investment, a later increase or decrease in percentage resulting
from a change in values of assets will not constitute a violation
of that restriction.
By written ballot, the Participating Trusts holding Units of the
Balanced Portfolio approved the writing of covered call options
by that Portfolio. The requisite number of Units of all
Participating Trusts approved the creation of the Growth Equity
Portfolio at the meeting of Participating Trusts on June 29,
1992.
The Trust anticipates that the annual rate of portfolio turnover
will, generally, not exceed 75% for each of the Portfolios. High
Portfolio turnover involves correspondingly greater transaction
costs in the form of dealer spreads or brokerage commissions and
other transaction costs that a Portfolio will bear directly.
VALUATION OF UNITS
Net asset value per Unit of each Portfolio is determined by
dividing the total value of the Portfolio's assets less any
liabilities, including the fees payable to the Custodial Trustee,
the Investment Managers and the Association for advisory,
administrative and other services, by the number of outstanding
Units. Each Portfolio shall be charged with the liabilities in
respect to such Portfolio, and shall also be charged with a share
of the general liabilities of the Trust proportionate to the net
asset value of such Portfolio.
The Custodial Trustee determines the value of the assets held in
each Portfolio as of 10:00 a.m., San Francisco, California time
(or at such other time as may be determined by the Supervisory
Committee) on each valuation Date. Except for debt securities
with remaining maturities of 60 days or less, assets for which
market quotations are available are valued as follows: (a) each
listed security is valued at its closing price obtained from the
primary exchange on which the security is listed, or, if there
were no sales on that day, at its last reported current closing
price; (b) each unlisted security is valued at the last current
bid price (or last current sale price, as applicable) obtained
from the NASDAQ; (c) United States Government and agency
obligations are valued based upon bid quotations from the Federal
Reserve Bank for identical or similar obligations; and (d) short-
term money market instruments (such as certificates of deposit,
bankers acceptances and commercial paper) are most often valued
by bid quotations or by reference to bid quotations of available
yields for similar instruments of issuers with similar credit
ratings. The Supervisory Committee has determined that the
values obtained using the procedures described in (c) and (d)
represent the fair values of the securities valued by such
procedures. Most of these prices are obtained by the Custodial
Trustee from a service that collects and disseminates such market
prices. Bid quotations for short-term money market instruments
reported by such service are the bid quotations reported to it by
major dealers in such instruments.
Debt securities with remaining maturities of 60 days or less are
valued on the basis of amortized cost, which provides stability
of net asset value. Under this method of valuation, the security
is initially valued at cost on the date of purchase, or in the
case of securities purchased with more than 60 days remaining to
maturity and to be valued on the amortized cost basis only during
the final 60 days of its maturity, the market value on the 61st
day prior to maturity. Thereafter, the Trust assumes a constant
proportionate amortization in value until maturity of any
discount or premium, regardless of the impact of fluctuating
interest rates on the market value of the security, unless the
Supervisory Committee determines that amortized cost no longer
represents fair value. The Trust will monitor the market value
of these investments for the purpose of ascertaining whether any
such circumstances exist.
When approved by the Supervisory Committee, certain securities
may be valued on the basis of valuations provided by an
independent pricing service when such prices are believed to
reflect the fair market value of such securities. These securi-
ties will normally be those that have no available recent market
value, have few outstanding shares and therefore infrequent
trades, or for which there is a lack of consensus on the value,
with quoted prices covering a wide range. The lack of consensus
might result from relatively unusual circumstances such as no
trading in the security for long periods of time, or a company's
involvement in merger or acquisition activity, with widely vary-
ing valuations placed on the company's assets or stock. Prices
provided by an independent pricing service may be determined
without exclusive reliance on quoted prices and may take into
account appropriate factors such as institutional-size trading in
similar groups of securities, yield, quality, coupon rate,
maturity, type of issue, trading characteristics and other market
data.
In the absence of an ascertainable market value, assets are
valued at their fair value as determined by the Supervisory
Committee.
The Trust will not declare or pay dividends with respect to the
Portfolios. Income earned on assets in a Portfolio is included
in the total value of that Portfolio's assets. Interest income
on debt securities is accrued and added to asset value monthly as
of each Valuation Date. Dividend income is recognized and added
to asset value on the ex-dividend date. In addition, gains or
losses realized from the sale of portfolio securities of a
Portfolio will be added to or subtracted from, respectively, the
asset value of such Portfolio.
<TABLE>
MANAGEMENT OF THE TRUST
Supervisory Committee and Officers
The business and affairs of the Trust are managed under the
direction of the Supervisory Committee. The Supervisory
Committee will perform duties and undertake responsibilities
similar to those of a board of directors of an investment
company. The members of the Supervisory Committee and the
officers of the Trust and their principal occupations for the
last five years are as follows:
<CAPTION>
Position Held <F1> Principal Occupation
Name and Address <F2> With the Trust During Past 5 Years
<S> <C> <C>
Robert E. Gwynn, M.D. Chairman and Physician <F3>
Chief Executive
Officer
Klaus R. Dehlinger, M.D. Physician, retired
Bruce M. Fisher, M.D. Vice Chairman Physician <F3>
William R. Forsythe, M.D. Physician
Carl Goetsch, M.D. Physician, retired
Albert K. Greenberg, M.D. Physician, retired
William N. Guertin Secretary Executive Director,
the Association <F3>
Robert R. Haumeder, M.D. Physician, retired
Richard Marchick, M.D. Physician, retired
L. Richard Mello Treasurer Administrator,
the Association <F3>
Robert J. Oakes, M.D. Physician, retired
Richard Rihn, M.D. Physician
<FN>
<F1>
All of such individuals, as members of the Supervisory Committee,
act as directors of the Trust.
<F2>
All at 6230 Claremont Avenue, Oakland, CA 94618.
<F3>
Interested Person
</FN>
</TABLE>
The Members of the Supervisory Committee and the officers of the
Trust, as a group, own 10,000 Units of the International Value
Equity Portfolio, 30,026 Units of the Growth Equity Portfolio,
11,402 Units of the Value Equity Portfolio, 4,867 Units of the
Balanced Portfolio, 9,062 Units of the Long-Intermediate Fixed
Income Portfolio, 42,992 Units of the Short-Intermediate Fixed
Income Portfolio and 540 Units of the Money Market Portfolio. No
member of the Supervisory Committee or officer of the Trust is
affiliated with the Custodial Trustee of the Trust. Four members
of the Supervisory Committee are "interested persons" of the
Trust within the meaning of the Investment Company Act. They are
Robert E. Gwynn, M.D.; William N. Guertin, Bruce M. Fisher, M.D.
and L. Richard Mello. There is no family relationship between
any of the members of the Supervisory Committee or the officers
of the Trust. Members of the Supervisory Committee who are not
affiliated with the Custodial Trustee or the Investment Managers
may be compensated for services to, and reimbursed for expenses
incurred as a member of, the Supervisory Committee. Currently no
compensation is paid to any member of the Supervisory Committee
or officer of the Trust, in either of such capacities.
<TABLE>
Five Percent Owners
The following persons or entities own five percent or more of one
or more Portfolios:
<CAPTION>
Owner Portfolio Percentages
<S> <C> <C>
Burton Adams International 6.3%
1025 Sherman St. Value Equity
Alameda, CA 94501
Ralph Baldzikowski Money Market 11.8%
271 Madrone Avenue
Santa Clara, CA 95091
Norman Ballantine Money Market 6.5%
1965 Beacon Ridge Court
Walnut Creek, CA 94596
Berkeley Urological Balanced 22.7%
Associates Long-Intermediate 5.7%
2999 Regent Street, #612 Fixed Income
Berkeley, CA 94705 Money Market 11.6%
Robert Black Money Market 6.0%
36862 Montecito Drive
Fremont, CA 94536
Michael Cohen International 6.3%
130 La Casa Via Value Equity
Building 2, #208
Walnut Creek, CA 94598
Howard Daniel, MD Growth Equity 5.3%
9933 MacArthur Boulevard
Oakland, CA 94605
Howard Daniel, MD, APC Growth Equity 6.1%
9933 MacArthur Boulevard
Oakland, CA 94605
Klaus Dehlinger International 12.5%
600 San Luis Rd. Value Equity
Berkeley, CA 94707 Growth Equity 8.4%
Short-Intermediate 9.8%
Fixed Income
Stanley Goodman Long-Intermediate 10.4%
3021 Telegraph Ave. Fixed Income
Berkeley, CA 94705
Robert Hepps International 6.3%
1515 Ygnacio Valley Road Value Equity
Suite F
Walnut Creek, CA 94598
Roger Hoag Value Equity 5.7%
2915 Telegraph Ave. Short-Intermediate 7.6%
Berkeley, CA 94705 Fixed Income
Ralph D. Kirk Long-Intermediate 5.8%
5 Kirkwood Court Fixed Income
Concord, CA 94521
Raymond Maas International 8.9%
16989 Hinton Court Value Equity
Castro Valley, CA 94546 Balanced 7.7%
Short-Intermediate 7.8%
Fixed Income
Richard Marchick Growth Equity 6.9%
516 The Glade Balanced 8.3%
Orinda, CA 94563 Short-Intermediate 6.9%
Fixed Income
Sumner Marshall Balanced 21.2%
2999 Regent St. #612
Berkeley, CA 94705
North Oakland Medical Clinic International 12.5%
6105 San Pablo Avenue Value Equity
Oakland, CA 94608 Growth Equity 9.8%
Patricia McEveney International 20.0%
5954-1C Autumnwood Drive Value Equity
Walnut Creek, CA 94598-3904 Growth Equity 7.9%
Long-Intermediate 7.6%
Fixed Income
Money Market 6.2%
OB/GYN Fertility Growth Equity 7.7%
Specialist Medical Value Equity 11.3%
Group, Inc. Balanced 12.0%
2915 Telegraph Ave. Long-Intermediate 6.2%
Berkeley, CA 94705 Fixed Income
Short-Intermediate 21.9%
Fixed Income
Money Market 7.5%
Respiratory Medical International 7.9%
Group, Inc. Value Equity
130 La Casa Via Growth Equity 5.0%
Bldg. 2, #208 Value Equity 6.6%
Walnut Creek, CA 94598
Richard Rihn Long-Intermediate 5.5%
739 Hamilton Drive Fixed Income
Pleasant Hill, CA 94523
Eugene Taylor Balanced 7.4%
200 The Knoll
Orinda, CA 94563
E. Gregory Thomas Long-Intermediate 5.4%
4471 Hillsborough Drive Fixed Income
Castro Valley, CA 94546
Bruce Thompson International 12.5%
6105 San Pablo Avenue Value Equity
Oakland, CA 94608 Growth Equity 9.8%
Ruperto R. Visaya International 6.1%
113 Serra Court Value Equity
Vallejo, CA 94590 Growth Equity 6.9%
Visaya & Visaya, MDs, Inc. International 9.5%
1040 Colusa Street Value Equity
Vallejo, CA 94590
Robert Werra Short-Intermediate 10.5%
721 South Dora Fixed Income
Ukiah, CA 95482
Robert Werra, M.D., APC Short-Intermediate 11.2%
721 South Dora Fixed Income
Ukiah, CA 95482
</TABLE>
The Custodial Trustee
Subject to the direction of the Supervisory Committee, Wells
Fargo Bank, N.A., acts as the Custodial Trustee of the Trust
pursuant to a Declaration of Trust dated February 9, 1990 and, as
such, provides custodial services to the Trust.
Investment Management
Under the Investment Management Agreements between each
Investment Manager and the Trust (the "Agreement"), the
Investment Manager manages the investment of the assets of each
Portfolio for which it has been appointed Investment Manager in
conformity with the stated objectives and policies of such
Portfolio and the overall investment restrictions of the Trust.
The Investment Manager supervises the Trust's investments and
maintains a continuous investment program for the Portfolio,
places purchase and sale orders and pays costs of certain
clerical and administrative services involved in managing and
servicing the investments of such Portfolio and complying with
regulatory reporting requirements. The Investment Manager also
furnishes employees, office space and facilities required for
operation of the Investment Manager.
The investment management services of the respective Investment
Managers to the Trust are not exclusive under the terms of the
Agreements. Each Investment Manager is free to, and does, render
investment advisory services to others.
The Custodial Trustee is obligated to hold and account for the
assets of the Trust in accordance with applicable laws and
regulations, including the regulations and rulings of the United
States Comptroller of the Currency relating to fiduciary powers
of national banks. In accordance with these regulations, the
Custodial Trustee will not invest, or permit the Investment
Managers to invest, the Trust's assets in stock or obligations of
or property acquired from, Wells Fargo, its affiliates or
directors, officers or employees or other persons with substan-
tial connections with Wells Fargo, and further, assets of the
Trust will not be sold or transferred, by loan or otherwise, to
Wells Fargo or persons connected with Wells Fargo as described
above, except that part of a Portfolio may be invested in
deposits of Wells Fargo that bear a reasonable rate of interest
or in cash, without liability with respect to such cash, as may
be reasonably necessary from time to time to be held temporarily
awaiting investment and for paying withdrawals or expenses.
Expenses of the Trust
The Association will pay: (i) all costs and expenses arising in
connection with the organization of the Trust. including the
initial registration and qualification of the Trust and the Units
under federal and state law; (ii) all marketing and advertising
expenses of the Trust; (iii) expenses of all employees, office
space and facilities necessary to carry out its duties under the
Administrative Services Agreement; (iv) all costs and expenses of
determining the net asset value of the Units; and (v) all
expenses of accounting for Participating Trusts. The Custodial
Trustee will pay: (i) all expenses of its employees, office
space and facilities necessary to carry out its duties under the
Declaration of Trust; and (ii) expenses of valuing the assets of
the Portfolios. Each Investment Manager will pay all expenses
incurred by it in connection with acting as Investment Manager,
other than costs (including taxes and brokerage commissions) of
securities purchased for the Trust. Expenses incurred by each
Investment Manager in connection with acting as Investment
Manager include the costs of statistical and research data,
accounting, data processing, bookkeeping and internal auditing
services, rendering periodic and special reports to the
Supervisory Committee, and other costs associated with providing
investment research and portfolio management.
Except for the expenses described above that have been assumed by
the Custodial Trustee, the Association or each Investment
Manager, as the case may be, all expenses incurred in the
administration of the Trust are charged to the Trusts including:
(i) the Custodial Trustee's management fee, the Association's fee
and the Investment Managers' fees (discussed below);
(ii) interest charges; (iii) taxes; (iv) brokerage commissions;
(v) expenses of continuing registration and qualification of the
Trust and the Units under federal and state law; (vi) expenses of
the issue and redemption of Units; (vii) fees and disbursements
of independent accountants, consultants and legal counsel;
(viii) expenses of preparing, printing and mailing prospectuses
(except the cost of printing and mailing of Prospectuses to
potential members of the Association which is to be paid by the
Association), reports, proxies, notices and statements sent to
Participating Trusts; (ix) expenses of meetings of Participating
Trusts; (x) insurance premiums; and (xi) nonrecurring expenses
including any expenses relating to litigation to which the Trust
or the Custodial Trustee as trustee of the Trust is a party.
Expenses incurred for the operation of a particular Portfolio,
including the expenses of communications to Participating Trusts,
are paid by that Portfolio. Expenses that are general
liabilities of the Trust are allocated among the Portfolios in
proportion to the net asset value of each Portfolio at the time
of allocation.
Custodial Trustee's Fee
For its services under the Trust. The Trustee is paid a
quarterly fee at the annual rate of 1/2 of 1% of the first
$2,000,000 of the aggregate fair market value of the assets of
the combined Portfolios, 1/4 of 1% of such assets in excess of
$2,000,000 but less than $10,000,000 and of 1/8 of 1% of such
assets in excess of $10,000,000 determined as of the last
business day of each calendar quarter. The Custodial Trustee is
paid an additional annual administrative charge of approximately
$16,000 for certain Unitholder transaction services, including
plan set-up and maintenance fees, custody fees for individual
securities and charges for disbursements, processing, reporting
and preparing tax forms.
There are no initial or annual maintenance fees for participation
in the Trust.
The Trust has no transfer agent or dividend-paying agent. If the
Trust requires these or similar services, they will be provided
by the Custodial Trustee.
Administrator's Fee
As compensation for its services under the Administrative
Services Agreement, the Association is paid a quarterly fee at
the annual rate of 0.45% of the aggregate fair market value of
the assets of the combined Portfolios determined as of the last
business day of each calendar quarter. The Association is paid
an additional fee of $1,000 per month. The Association has
received from the Trust fees for its services for the years
ending December 31, 1993, 1994 and 1995 of $175,330, $172,264,
and 186,479, respectively.
Investment Managers' Fees
Lazard Freres & Company ("Lazard") is paid a quarterly investment
management fee for its services to the International ADR Value
Portfolio at the annual rate of 1.0% of the aggregate fair market
value of the first $1,000,000 of assets of such Portfolio and 3/4
of 1.0% of such assets in excess of $1,000,000 determined as of
the last business day of each calendar quarter. Lazard has
received investment management fees for services from December 1,
1995 through December 31, 1995 of $236.
The Burridge Group, Inc. ("Burridge") is paid a quarterly
investment management fee for its services to the Growth Equity
Portfolio at the annual rate of 1.0% of the aggregate fair market
value of the first $1,000,000 of assets of such Portfolio and 3/4
of 1.0% of such assets in excess of $1,000,000 determined as of
the last business day of each calendar quarter. The fees charged
by Burridge are higher than those paid to most other investment
companies. Burridge has received investment management fees for
the years ending December 31, 1993, 1994, and 1995 of $20,309,
$22,648, and $25,140 respectively.
Towneley Capital Management, Inc. ("Towneley") is paid a
quarterly investment management fee for its services to the Value
Equity Portfolio at the annual rate of 1.0% of the aggregate fair
market value of the assets of such Portfolio. The asset value is
determined as of the last business day of each calendar quarter.
The fees charged by Towneley are higher than those paid to most
other investment companies. Towneley has received investment
management fees for the years ended December 31, 1993, 1994 and
1995 of $140,145, $159,034, and $176,999 respectively.
Guardian Investment Management ("Guardian") is paid a quarterly
investment management fee for its services to the Balanced
Portfolio at the annual rate of 1.0% of the first $250,000 of the
aggregate fair market value of the assets of such Portfolio and
6/10 of 1.0% of such assets exceeding $250,000 determined as of
the last business day of each calendar quarter. The fees charged
by Guardian are higher than those paid to most other investment
companies. Guardian has received investment management fees for
the years ended December 31, 1993, 1994 and 1995 of $19,794,
$16,682, and $17,929 respectively.
Scudder, Stevens & Clark is paid a quarterly investment
management fee for its services to the Long-Intermediate Fixed
Income Portfolio, the Short-Intermediate Fixed Income Portfolio
and the Money Market Portfolio at the annual rate of 1/2 of 1% of
the aggregate fair market value of the assets of such Portfolios
determined as of the last business day of each calendar quarter.
Scudder, Stevens & Clark has received investment management fees
for the years ended December 31, 1993, 1994 and 1995 of $73,014,
$71,105, and $64,122 respectively.
Term of the Agreements
The Investment Management Agreements will remain in effect as to
each Portfolio until the first meeting of the Participating
Trusts. If approved at that meeting by a majority of the
outstanding Units of the Trust, the Investment Management
Agreements shall continue in effect for one year thereafter. The
Investment Management Agreements shall remain in effect from year
to year thereafter if their continuance is approved annually
either by the vote of a majority of the outstanding Units of the
Portfolios to which the Investment Management Agreements relate
or by the Supervisory Committee, and by the vote of a majority of
the members of the Supervisory Committee who are not parties to
the Agreements or "interested persons" of a party within the
meaning of the Investment Company Act. An Investment Management
Agreement may be terminated as to any Portfolio on no more than
60 days' notice given at any time and will terminate
automatically if it is assigned.
PORTFOLIO TRANSACTIONS
Subject to the general supervision of the Supervisory Committee
and the Custodial Trustee, each Investment Manager is responsible
for the investment decisions and the placing of orders for
Portfolio transactions for specified Portfolios constituting a
part of the Trust. The policy of the Trust regarding purchases
and sales of securities for its Portfolios is that primary
consideration will be given to obtaining the most favorable price
and efficient execution of transactions. In seeking to implement
the Trust's policy, the Investment Managers will effect
transactions with those brokers and dealers who the Investment
Managers believe provide the most favorable prices and are
capable of providing efficient executions.
Subject to the policy of seeking the best execution of the
investment transactions at the prices most favorable to the
Trust, the Investment Managers may in circumstances in which two
or more broker-dealers are in a position to offer comparable
prices and execution, give preference to broker-dealers that have
provided general research and investment information and other
services to the Investment Managers with respect to securities
appropriate for investment by the Portfolios. These research and
investment information services are made available to the
Investment Managers for their analysis and consideration as
investment advisers to the Trust and other accounts, the views
and information of individuals and research staffs of many
securities firms. Such research and investment information may
include advice concerning the value of securities, the advisa-
bility of purchasing or selling securities, the availability of
securities or the purchasers or sellers of securities, and
analyses and reports concerning issuers, industries, securities,
economic factors and trends, Portfolio strategy and performance
of accounts. Although such information is useful, its value is
not determinable and it does not necessarily reduce expenses to
the Investment Managers or reduce the management fees payable to
the Investment Managers by the Trust.
The Supervisory Committee has instructed the Investment Managers
to effect brokerage transactions with Paine Webber Incorporated
("Paine Webber"), formerly Kidder Peabody & Co. Incorporated, in
the purchase and sale of securities, so long as advantageous to
the Portfolios. Paine Webber provides research services to the
Investment Managers with respect to securities appropriate for
investment by the Portfolios, as described above, and provides a
discount on commissions for purchases and sales of such
securities for the Portfolios for which it acts as broker-dealer.
The Trust has paid brokerage commission for portfolio
transactions for the years ending December 31, 1993, 1994 and
1995 of $150,275, $212,781, and $190,954 respectively. Effective
January 1, 1996, the Trust has an agreement with Paine Webber
under which the amount paid to Paine Webber by the Trust for
certain consulting services is to be reduced by one-half of the
amount paid to Paine Webber as commissions for purchases and
sales of securities. The consulting services include monitoring
of investment manager performance, preparation of studies and
investment policy statements, and other research services.
Portfolio securities may not be purchased from or sold to the
Custodial Trustee or an affiliated person (as defined in the
Investment Company Act) of the Custodial Trustee except as may be
permitted by the Securities and Exchange Commission and subject
to the rules and regulations of the Comptroller of the Currency.
Certain investments may be appropriate for the Trust and also for
other clients advised by the Investment Managers. Investment
decisions for the Trust and other clients are made with a view to
achieving their respective investment objectives and after
consideration of such factors as their current holdings,
availability of cash for investment and the size of their
investments generally. Frequently, a particular security may be
bought or sold for one or more clients in different amounts. In
such event, and to the extent permitted by applicable law and
regulations, such transactions will be allocated among the
clients in a manner believed to be equitable to each.
Ordinarily, such allocation will be made on the basis of the
weighted average price of such transactions effected during a
trading day, and if all orders for the same security could be
only partially executed during a trading day, then securities
will be allocated proportionately on the basis of the sizes of
the orders.
PERFORMANCE INFORMATION
All performance information included in any advertising by the
Portfolios is historical and is not intended to indicate future
returns. A Portfolio's Unit price and total return fluctuate in
response to market conditions and other factors, and the value of
a Portfolio's Units when redeemed or exchanged may be more or
less than their original cost.
Total Return Calculations - Growth Equity Portfolio, Value Equity
Portfolio, Long-Intermediate Fixed Income Portfolio, Short-
Intermediate Fixed Income Portfolio, Balanced Portfolio:
Total return determines the net change in value, including
reinvested earnings, after deduction of expenses, of a
hypothetical $1,000 investment.
Average annual total return is computed by determining the growth
or decline in the value of a hypothetical $1,000 investment in a
Portfolio (other than the Money Market Portfolio) over a stated
period of time, then calculating the average annual compounded
percentage rate which would give the same ending value as if the
growth or decline had been constant over the period. Stated
mathematically:
n
P(1+T) = ERV
where P = a hypothetical initial investment of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value of a hypothetical
$1,000 payment made at the beginning of the
period at the end of the same period
The returns for the Growth Equity Portfolio, the Value Equity
Portfolio, the Balanced Portfolio, the Long-Intermediate Fixed
Income Portfolio and the Short-Intermediate Fixed Income
Portfolio, from commencement of operations on August 2, 1990
through December 31, 1995 (six years), from January 1, 1991
through December 31, 1995 (five years) and from January 1, 1995
through December 31, 1995 (one year) are as follows:
<TABLE>
<CAPTION>
International Value Equity
<S> <C>
One Year <F3>
Net asset value:
Beginning of period $10.00
End of period $10.09
Percentage change in 0.90%
net asset value
Average Annual
Total Return 11.35%
Ending value of $1,113.51
hypothetical
$1,000 investment
<FN>
<F3>
One year figure for the International Value Equity Portfolio
reflects performance from December 1, 1995 (inception) through
December 31, 1995.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Growth Equity
<S> <C> <C>
One Year Four Years <F4>
Net asset value:
Beginning of period $12.12 $10.00
End of period $14.27 $14.27
Percentage change in 17.74% 42.70%
net asset value
Average Annual
Total Return 17.73% 11.52%
Ending value of $1,170.00 $1,426.89
hypothetical
$1,000 investment
<FN>
<F4>
Four year figures for the Growth Equity Portfolio reflect
performance from October 1, 1992 (inception) through December 31,
1995.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Value Equity
<S> <C> <C> <C>
One Year Five Years Six Years
Net asset value:
Beginning of period $94.93 $60.74 $60.54
End of period $119.20 $119.20 $119.20
Percentage change in 25.57% 96.25% 96.89%
net asset value
Average Annual
Total Return 25.57% 14.44% 12.44%
Ending value of $1,255.70 $1,962.86 $1,890.40
hypothetical
$1,000 investment
</TABLE>
<TABLE>
<CAPTION>
Balanced
<S> <C> <C> <C>
One Year Five Years Six Years
Net asset value:
Beginning of period $37.05 $27.43 $28.83
End of period $45.91 $45.91 $45.91
Percentage change in 23.91% 67.37% 56.43%
net asset value
Average Annual
Total Return 23.91% 10.85% 8.91%
Ending value of $1,239.10 $1,673.70 $1,589.17
hypothetical
$1,000 investment
</TABLE>
<TABLE>
<CAPTION>
Long-Intermediate Fixed Income
<S> <C> <C> <C>
One Year Five Years Six Years
Net asset value:
Beginning of period $48.23 $38.04 $36.43
End of period $56.88 $56.88 $56.88
Percentage change in 17.93% 49.53% 56.14%
net asset value
Average Annual
Total Return 17.93% 8.38% 8.57%
Ending value of $1,179.30 $1,495.36 $1,562.38
hypothetical
$1,000 investment
</TABLE>
<TABLE>
<CAPTION>
Short-Intermediate Fixed Income
<S> <C> <C> <C>
One Year Five Years Six Years
Net asset value:
Beginning of period $18.85 $15.37 $14.13
End of period $20.90 $20.90 $20.90
Percentage change in 10.88% 35.98% 47.91%
net asset value
Average Annual
Total Return 10.88% 6.34% 6.57%
Ending value of $1,108.80 $1,359.83 $1,412.23
hypothetical
$1,000 investment
</TABLE>
FINANCIAL STATEMENTS
ALAMEDA CONTRA-COSTA MEDICAL ASSOCIATION
COLLECTIVE INVESTMENT TRUST FOR RETIREMENT PLANS
FINANCIAL STATEMENTS
for the years ended December 31, 1995 and 1994
<PAGE>
<PAGE>
Firm: Coopers & Lybrand, L.L.P.
A Professional Services Firm
Re: Report of Independent Auditors
To the Unitholders and Supervisory Committee of Alameda-Contra
Costa Medical Association Collective Investment Trust for
Retirement Plans:
We have audited the accompanying statements of assets and
liabilities of the funds comprising Alameda-Contra Costa Medical
Association Collective Investment Trust for Retirement Plans,
including each Fund's statement of investments in securities and
net assets, as of December 31, 1995, and the related statements
of operations for the year then ended, and the statements of
changes in net assets, and the financial highlights for the
periods indicated thereon. These financial statements and
financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements and financial highlights are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of
securities owned as of December 31, 1995 by correspondence with
the custodian and brokers. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of the funds comprising Alameda-Contra Costa
Medical Association Collective Investment Trust for Retirement
Plans as of December 31, 1995, the results of their operations
for the year then ended, and the changes in their net assets, and
the financial highlights for the periods indicated thereon, in
conformity with generally accepted accounting principles.
Coopers & Lybrand, L.L.P.
Oakland, California
February 9, 1996
PAGE
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1995
<CAPTION>
ASSETS International Growth Value Balanced Long- Short- Money Market
Value Equity Equity Equity Intermediate Intermediate
Fixed Income Fixed Income
<S> <C> <C> <C> <C> <C> <C> <C>
Investments, at cost 982,742 2,856,529 17,812,987 2,816,346 4,349,637 5,922,142 2,377,485
Investments, at value 989,423 3,354,406 20,267,575 3,470,332 4,771,393 5,994,197 2,384,947
Receivable-units sold 10,000 11,228 19,466 3,248 10,592 33,233 156,731
Accrued dividends
and interest receivable 0 2,853 36,109 23,222 54,019 90,909 30,457
_________ _________ _________ _________ _________ _________ _________
Total assets 999,423 3,368,487 20,323,150 3,496,802 4,776,004 6,118,339 2,572,135
LIABILITIES AND
NET ASSETS
Accrued expenses:
Administration fees 446 5,812 34,589 5,947 8,054 10,382 4,141
Professional fees 402 1,478 8,148 1,363 1,790 2,441 941
Payable-securities purchase 193,217 0 0 0 0 0 0
Payable-redemption of units 0 0 0 0 43,748 33,000 1,288
_________ _________ __________ _________ _________ _________ _________
Total liabilities 194,605 7,290 42,737 7,310 53,592 45,823 6,370
Net assets 805,358 3,361,197 20,280,413 3,489,492 4,722,412 6,072,516 2,565,765
Units outstanding 79,824 235,552 170,135 76,005 83,031 290,526 58,275
Net asset value per unit 10.09 14.27 119.20 45.91 56.88 20.90 44.03
NET ASSETS COMPOSED OF:
Paid-in capital 798,343 2,622,322 10,665,732 2,162,839 2,725,926 4,397,070 1,345,533
Accumulated undistributed
net investment income
(loss) 334 (59,244) 1,130,965 456,346 1,470,762 1,533,522 1,274,080
Accumulated undistributed
net realized gains
(losses) 0 300,242 6,029,128 216,321 163,968 69,869 (61,310)
Unrealized appreciation
(depreciation) on
investments 6,681 497,877 2,454,588 653,986 361,756 72,055 7,462
_________ _________ __________ _________ _________ _________ _________
Net assets at value 805,358 3,361,197 20,280,413 3,489,492 4,722,412 6,072,516 2,565,765
</TABLE>
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
SCHEDULE OF INVESTMENTS
December 31, 1995
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO Shares Value
<S> <C> <C>
Cash and Cash Equivalents (50.49%)
Wells Fargo Money Market Fund 499,528 499,528
(cost 499,528)
Common Stocks (49.51%):
Consumer Staples (4.14%):
Compagnie General Des Eaux 800 15,995
Nestle SA ADR 450 24,951
______
Health (3.16%): 40,946
Astra AB ADR B 400 15,874
CIBA Geigy A G 350 15,437
______
Consumer Durables (5.72%): 31,311
Nippondenso Ltd 200 14,968
Toyota Motor Corp 400 16,900
Volvo AB ADR B 1,200 24,713
______
Services (1.63%): 56,581
Waste Mgmt Intl Plc 1,500 16,125 <F1>
Process Industry (5.23%):
Hoechst A G 200 27,179
Repola Oy 1,300 24,550
______
Consumer Discretionary (9.49%): 51,729
Amway Japan Ltd 800 16,700
News ADR PFD A 850 16,362
Nintendo Ltd 1,650 15,696
Rank Organisation Pub Ltd 1,200 17,550
Sony Corp ADR 450 27,619
______
93,927
PAGE
<PAGE>
SCHEDULE OF INVESTMENTS, continued
December 31, 1995
INTERNATIONAL EQUITY PORTFOLIO, continued
Common Stocks, continued
Producer/Manufacturing (4.37%):
Cable and Wireless Pub Ltd 750 15,844
Siemens A G ADR 250 27,423
______
Technology (4.04%): 43,267
Hitachi Limited ADR 250 25,125
Matsushita Elec Indl 90 14,805
______
Energy (2.41%): 39,930
ELF Aquataine ADR 650 23,887
Telecommunications (1.68%):
Alcatel Alsthom 950 16,625
Financial (5.23%):
Den Danske Bank AF 1871 AK 250 17,278
Intl Nederlanden Groep 250 16,719
Yasuda Tr and Bkg Ltd 300 17,770
______
Utilities (2.41%): 51,767
National Power Plc 850 23,800
_______
Total Common Stocks (cost 483,214) 489,895
_______
Total Investments held (cost 982,742) 989,423
<FN>
<F1>
non income producing security
</FN>
</TABLE>
<PAGE>
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
SCHEDULE OF INVESTMENTS, continued
December 31,1995
<CAPTION>
GROWTH EQUITY PORTFOLIO Shares Value
<S> <C> <C>
Cash and Cash Equivalents (1.24%)
Wells Fargo Money Market Fund 41,502 41,502
(cost 41,502)
Common Stocks 98.76%:
Automotive (2.77%):
Magna International Inc 2,150 92,988
Publishing and Advertising (2.18%):
Houghton Mifflin Co 1,700 73,100
Drugs, Medical Supplies (8.42%):
Elan PLC ADR 2.500 121,563 <F1>
Forest Labs Inc 1,700 76,925 <F1>
Owens and Minor Inc New 6,600 84,150
_______
Entertainment and Leisure (2.76%): 282,638
Circus Circus Enterprise Inc 3,325 92,684 <F1>
Retailing (9.60%):
Circuit City Sotres Inc 2,800 77,350
Dollar Gen Corp 3,375 70,031
Heilig Meyers Co 4,700 86,363
Pep Boys Manny Moe and Mack 3,450 88,406
_______
Business Services (1.97%): 322,150
Sensormatic Electrics Corp 3,805 66,112
Other Consumer Services (1.29%):
Franklin Quest Co 2,230 43,485 <F1>
<PAGE>
<PAGE>
SCHEDULE OF INVESTMENTS, continued
December 31, 1995
GROWTH EQUITY PORTFOLIO, continued
Common Stocks (98.76%), continued
Business Equipment (6.69%):
Cisco Sys Inc 1,850 138,056 <F1>
Sequent Computer Sys Inc 5,950 86,275 <F1>
_______
Electronics (9.78%): 224,331
International Rectifier Corp 5,200 130,000 <F1>
Molex Inc 3,437 105,258
Texas Instruments 1,800 92,700
_______
Specialty Equipment (4.19%): 327,958
American Power Conversion Corp Com 6,000 57,000 <F1>
Novellus Systems Inc 1,550 83,700 <F1>
_______
Software (6.53%): 140,700
Informix Corp 3,350 100,500 <F1>
Mentor Graphics Corp 6,500 118,625 <F1>
_______
Telecommunications (7.85%): 219,125
Nokia Corp 3,150 122,850
US Robotics Corp 1,600 140,400
_______
Electrical Equipment (7.46%): 263,250
Solectron Corp 2,940 129,728 <F1>
Symbol Technologies Inc 3,050 120,475 <F1>
_______
Machinery (2.27%): 250,203
Wabash National Corp 3,400 76,075
Banking and Credit (3.50%):
MBNA Corp 3,180 117,262
<PAGE>
<PAGE>
SCHEDULE OF INVESTMENTS, continued
December 31, 1995
GROWTH EQUITY PORTFOLIO, continued
Common Stocks (98.76%), continued
Finance and Insurance (16.30%):
Cincinnati Financial Corp 1,596 104,139
Equitable Cos Inc 4,800 115,200
Green Tree Financial 3,880 102,335
MBIA Inc 1,450 108,750
Mercury Finance Co 8,775 116,269
_______
Airlines (2.37%): 546,693
Southwest Airlines Co 3,450 79,350
Telephone (2.83%):
Telephone and Data Sys Inc 2,400 94,800
_________
Total Common Stocks (cost 2,815,027) 3,312,904
_________
Total invesmtnets held (cost 2,856,529) 3,354,406
<FN>
<F1>
non income producing security
</FN>
</TABLE>
<PAGE>
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
SCHEDULE OF INVESTMENTS, continued
December 31, 1995
<CAPTION>
VALUE EQUITY PORTFOLIO Shares Value
<S> <C> <C>
Cash and Cash Equivalents (6.18%)
Wells Fargo Money Market Fund 1,252,300 1,252,300
(cost 1,252,300)
Common Stocks 93.82%:
Energy (1.87%):
Occidental Petroleum Corp 5,800 123,975
Kerr-McGee Corp 1,600 101,600
USX-Marathon Group 7,900 154,050
_______
Industrial (3.13%): 379,625
Fluor Corp 9,600 633,600
Producer Manufacturing (5.15%):
Cummins Engine Co Inc 15,800 584,600
Johnson Controls Inc 4,600 316,250
Philips Elec N V New York Shs 4,000 143,500
_________
Process Industries (.48%): 1,044,350
Union Carbide Corp 2,600 97,500
Distributors (3.41%):
Alco Standard Corp 4,000 182,500
Rykoff-Sexton Inc 4,000 70,000
Sysco Corp 13,500 438,750
_______
Technology (9.38%): 691,250
SCI Systems 3,400 105,400 <F1>
United Technologies Corp 6,300 597,713
Digital Equipment Corp 10,400 666,900 <F1>
Gateway 2000 Inc 8,000 196,000 <F1>
<PAGE>
<PAGE>
SCHEDULE OF INVESTMENTS, continued
December 31, 1995
VALUE EQUITY PORTFOLIO, continued
Common Stocks (93.82%), continued
Technology (9.38%):, continued
Arrow Electronics Inc 5,700 245,100 <F1>
Avnet Inc 2,000 89,500
_________
Health Services (2.11%): 1,900,613
Bergen Brunswig Corp CL-A 8,200 203,975
Cardinal Health Inc 4,100 224,475
_______
Consumer (7.15%): 428,450
Conagra Inc 9,800 404,250
Honda Motor Ltd 5,700 237,975
IBP Inc 5,200 262,600
Polaroid Corp 11,500 544,812
_________
Retail (19.95%): 1,449,637
American Stores 19,700 526,975
Eckerd Corp 7,700 343,613 <F1>
Fingerhut Co Inc 15,800 219,225
Giant Foods Inc Cl-A 3,200 100,800
Kroger Co 16,200 605,475 <F1>
Rite Aid Corp 6,800 232,900
Safeway Inc 11,900 612,850 <F1>
Smiths Food and Drug CL-B 3,200 80,800
Super Value Stores 13,000 409,500
Vons Co Inc 4,600 129,950 <F1>
Walgreen Co 5,900 176,262
Winn Dixie Stores Inc 16,400 604,750
_________
Air Transportation (3.35%): 4,043,100
Federal Express Co 5,200 384,150 <F1>
KLM Royal Dutch Airline ADR 5,800 204,450
United Airlines 500 89,250 <F1>
_______
Finance and Insurance (2.90%): 677,850
Bear Stearns Co Inc 4,900 97,388
Great Western Financial 3,800 96,425
PAGE
<PAGE>
SCHEDULE OF INVESTMENTS, continued
December 31, 1995
VALUE EQUITY PORTFOLIO, continued
Common Stocks (93.82%), continued
Finance and Insurance (2.90%):, continued
National City Corp 3,000 99,375
Southtrust Corp 3,800 97,375
USF&G Corp 5,700 96,187
Washington Mutual Insurance 3,500 101,063
_______
Utilities (34.94%): 587,813
Alleghany Power System 8,000 229,000
American Electric Power Co Inc 13,600 550,800
Coastal Corp 6,300 233,100
Columbia Gas System Inc 5,000 219,375 <F1>
Central & Southwest Corp 14,500 404,187
Cipsco Inc 5,900 230,100
CMS Energy Corp 10,600 316,675
Detroit Edison Co 17,500 603,750
FPL Group Inc 13,800 639,975
Illinova Corp 21,000 630,000
Ohio Edison co 21,800 512,300
Pacific Gas & Electric 6,700 190,113
Panhandle Eastern Corp 4,100 114,287
Pinnacle West Capital Corp 21,600 621,000
Public Service Co of Colorado 11,500 406,813
SCE Corp 15,000 264,375
Unicom Corp 19,500 638,625
Western Resources Inc 8,300 277,012
_________
7,081,487
Total Common Stocks (cost 16,560,687) 19,015,275
__________
Total investments held (cost 17,812,987) 20,267,575
<FN>
<F1>
non income producing security
</FN>
</TABLE>
<PAGE>
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
SCHEDULE OF INVESTMENTS, continued
December 31, 1995
<CAPTION>
BALANCED PORTFOLIO Shares Value
<S> <C> <C>
Cash and Cash Equivalents (9.41%)
Wells Fargo Money Market Fund 326,383 326,383
(cost 326,383)
Common Stocks 59.68%:
Automotive (.83%):
Ford Motor 1,000 28,875
Basic Industry (2.06%):
Caterpiller Inc 500 29,375
Champion International 1,000 42,000
______
Capital Goods (6.11%): 71,375
Black & Decker 2,000 70,500
General Electric 1,000 72,000
Minnesota Mining 600 39,825
WMX Technologies 1,000 29,750
_______
Chemical (1.26%): 212,075
Cytec 142 8,857 <F1>
E I Dupont 500 34,938
______
Consumer (6.28%): 43,795
Gillette 2,000 104,250
H J Heinz 1,500 49,688
Sara Lee 2,000 64,000
_______
Energy and Transportation (5.70%): 217,938
American President Lines 2,000 46,000
Chevron 1,000 52,375
Mobil Oil Corp 300 33,525
Union Pacific 1,000 66,000
_______
197,900
<PAGE>
SCHEDULE OF INVESTMENTS, continued
December 31, 1995
BALANCED PORTFOLIO, continued
Common Stocks (59.68%), continued
Entertainment and Leisure (3.39%):
Walt Disney 2,000 117,750
Drugs, Medical Supplies (7.46%):
American Home Products 500 48,500
Amgen 2,000 118,750 <F1>
Bristol Myers 500 42,938
Warner Lambert 500 48,562
_______
Finance and Insurance (9.01%): 258,750
Aetna Life 1,000 69,250
American Express 2,000 82,750
Bank America Corp 1,000 64,750
H & R Block 1,000 40,500
Paine & Webber 1,000 20,000
Salomon Inc 1,000 35,375
_______
Media (1.31%): 312,625
Media General 1,500 45,562
Retailers (3.02%):
GAP 1,000 42,000
Price Costco 2,695 41,099 <F1>
Toys-R-Us 1,000 21,750 <F1>
_______
Technology (7.20%): 104,849
Apple Computer 1,000 31,875
EMC Corp 2,000 30,750 <F1>
Intel 500 28,375
Oracle 1,000 42,375 <F1>
Sun Microsystems 2,000 91,250 <F1>
Teradyne 1,000 25,125 <F1>
_______
249,750
<PAGE>
<PAGE>
SCHEDULE OF INVESTMENTS, continued
December 31, 1995
BALANCED PORTFOLIO, continued
Common Stocks (59.68%), continued
Telephone (3.79%):
AT&T 1,000 64,750
Bell Atlantic 1,000 66,875
_______
Telecommunications (2.26%): 131,625
MCI Communications 3,000 78,375
_________
Total Common Stocks (cost 1,480,098) 2,071,244
_________
Corporate Debt Securities (18.75%):
Financial (3.22%):
Merrill Lynch 100,000 111,942
Industrial (9.40%):
BP Amer, 9.375%, due 11-01-00 100,000 114,986
IBM, 7.250%, due 11-01-02 100,000 106,159
North Telecom, 6.875%, due 10-01-02 100,000 104,895
_______
International (6.13%): 326,040
Quebec Province, 7.500%, due 07-15-02 100,000 107,036
ELF Aquataine, 7.750%, due 05-01-99 100,000 105,561
_______
212,597
Total Corporate Debt Securities 650,579
(cost 609,427) _______
<PAGE>
<PAGE>
SCHEDULE OF INVESTMENTS, continued
December 31, 1995
BALANCED PORTFOLIO, continued
U.S. Gov't & Agency Obligations (12.16%):
U.S. Treasury Notes:
7.125%, due 10-15-98 200,000 209,626
7.250%, due 02-15-98 100,000 103,969
7.750%, due 12-31-99 100,000 108,531
_________
Total U. S. Government (cost 400,438) 422,126
_________
Total investments held (cost 2,816,346) 3,470,332
<FN>
<F1>
non income producing security
</FN>
</TABLE>
PAGE
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
SCHEDULE OF INVESTMENTS, continued
December 31, 1995
<CAPTION>
LONG-INTERMEDIATE FIXED INCOME PORTFOLIO Shares Value
<S> <C> <C>
Cash and Cash Equivalents (11.15%)
Wells Fargo Money Market Fund 525,472 525,472
(cost 525,472)
Corporate Debt Securities (12.03%):
Industrial (12.03%):
Atlantic Richfield Mtn, 8.550%,
due 03-01-12 150,000 180,924
Boeing Co DEB, 7.250%, due 06-15-25 150,000 162,214
Caterpillar Mtn, 8.100%, due 01-15-04 100,000 111,351
WalMart Stores Inc, 8.625%, due 04-01-01 100,000 112,014
_________
Total Corporate Debt Securities 566,503
(cost 508,489) _________
U.S. Gov't & Agency Obligations (76.82%):
U.S. Treasury Obligations (42.09%)
Bonds:
7.250%, due 05-15-16 700,000 799,316
7.875%, due 02-15-21 100,000 122,969
Notes:
5.875%, due 02-15-04 100,000 102,000
6.375%, due 01-15-99 400,000 412,252
6.375%, due 08-15-02 100,000 104,938
7.750%, due 02-15-01 400,000 441,500
_________
1,982,975
Federal Home Loan Mortgage Notes (6.23%):
8.000%, due 03-15-20 93,263 94,021
7.500%, due 02-01-25 190,826 195,655
10.500%, due 02-01-01 3,565 3,753
_______
293,429
<PAGE>
<PAGE>
SCHEDULE OF INVESTMENTS, continued
December 31, 1995
LONG-INTERMEDIATE FIXED INCOME PORTFOLIO, continued
U.S. Gov't & Agency Obligations (76.82%): continued
Federal National Mortgage Association
Pooled Notes (13.85%):
9.000%, due 11-01-04 20,556 21,623
6.000%, due 11-01-23 232,801 225,016
6.500%, due 11-01-25 249,703 246,737
8.500%, due 04-25-18 30,267 30,664
7.950%, due 12-25-19 126,227 128,553
_______
Government National Mortgage 652,593
Association Pooled Notes (14.65%):
7.500%, due 05-15-07 58,324 59,965
7.500%, due 07-15-07 48,345 49,704
11.000%, due 07-15-15 10,868 12,268
12.000%, due 06-15-15 1,315 1,516
9.500%, due 09-15-19 29,576 31,729
9.000%, due 12-15-19 47,708 50,526
7.500%, due 12-15-23 230,391 236,870
6.500%, due 11-15-09 245,618 247,843
_______
690,421
Total U.S. Government (cost 3,315,677) 3,619,418
_________
Total investments held (cost 4,349,637) 4,711,393
</TABLE>
<PAGE>
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
SCHEDULE OF INVESTMENTS, continued
December 31, 1995
<CAPTION>
SHORT-INTERMEDIATE FIXED INCOME PORTFOLIO Shares Value
<S> <C> <C>
Cash and Cash Equivalents (3.25%)
Wells Fargo Money Market Fund 194,981 194,981
(cost 194,981)
Corporate Debt Securities (15.21%):
Financial (9.25%):
AVCO Finl, 7.500%, due 11-15-96 100,000 101,658
Beneficial Mtn, 6.120%, due 08-27-97 100,000 100,899
Household Fin, 7.500%, due 03-15-97 100,000 102,249
World S&L Mtn, 4.850%, due 04-01-96 250,000 249,620
_______
Industrial (4.27%): 554,426
Hertz Corp, 6.700%, due 06-15-02 150,000 154,286
Waste Mgmt, 7.875%, due 08-15-96 100,000 101,330
_______
Utility (1.69%): 255,616
Pacific Gas and Electric,
7.140%, due 12-02-96 100,000 101,406
_______
Total Corporate Debt Securities 911,448
(cost 898,215) _______
U.S. Gov't & Agency Obligations (81.54%):
U.S. Treasury Notes (71.66%):
5.125%, due 12-31-98 200,000 199,250
5.750%, due 08-15-03 250,000 253,203
4.750%, due 08-31-98 250,000 246,953
5.125%, due 04-30-98 750,000 748,125
5.500%, due 07-31-97 250,000 251,095
5.750%, due 10-31-97 550,000 555,159
6.000%, due 10-15-99 500,000 511,720
6.250%, due 01-31-97 750,000 758,205
6.375%, due 01-15-99 400,000 412,252
6.750%, due 05-31-99 100,000 104,406
6.875%, due 03-31-97 250 000 255,000
_________
4,295,368
<PAGE>
SCHEDULE OF INVESTMENTS, continued
December 31, 1995
SHORT-INTERMEDIATE FIXED INCOME PORTFOLIO, continued
U.S. Gov't & Agency Obligations (81.54%): continued
Federal Home Loan Mortgage Notes (5.79%):
8.000%, due 03-15-20 46,632 47,010
7.500%, due 12-15-05 192,453 194,196
7.000%, due 09-01-99 103,951 105,964
_______
Federal National Mortgage Association 347,170
Pooled Notes (4.09%):
6.500%, due 10-01-10 244,010 245,230
_________
Total U.S. Government (cost 4,828,946) 4,887,768
_________
Total investments held (cost 5,922,142) 5,994,197
</TABLE>
<PAGE>
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
SCHEDULE OF INVESTMENTS, continued
December 31, 1995
<CAPTION>
MONEY MARKET PORTFOLIO Shares
Value
<S> <C> <C>
Cash and Cash Equivalents (15.87%)
Wells Fargo Money Market Fund 378,477 378,477
(cost 378,477)
U.S. Gov't & Agency Obligations (84.13%):
U.S. Treasury Notes (84.13%):
5.875%, due 05-31-96 500,000 501,250
6.125%, due 07-31-96 300,000 301,500
4.625%, due 02-29-96 250,000 249,765
5.500%, due 04-30-96 500,000 500,470
6.250%, due 01-31-97 250,000 252,735
7.500%, due 02-29-96 200,000 200,750
_________
Total U.S. Government (cost 1,999,008) 2,006,470
_________
Total investments held (cost 2,377,485) 2,384,947
</TABLE>
<PAGE>
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
STATEMENTS OF OPERATIONS
December 31, 1995
NOTE: International Value Equity inception date is November 30,1995
<CAPTION>
International Growth Value Balanced Long- Short- Money Market
Value Equity Equity Equity Intermediate Intermediate
Fixed Income Fixed Income
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Interest income 1,182 7,606 95,723 90,446 293,593 371,092 143,411
Dividend income 0 23,662 446,151 33,855 0 0 0
Other income 0 0 12,364 0 0 0 0
_______ _______ _______ _______ _______ _______ _______
Total investment income 1,182 31,268 554,238 124,301 293,593 371,092 143,411
Expenses:
Investment advisory fees 236 25,140 176,999 17,929 20,475 30,205 13,442
Administration fees 317 15,474 92,375 14,818 21,002 29,785 12,708
Custodian fees 129 6,940 40,798 6,565 9,311 12,878 5,537
Legal fees 40 2,063 12,364 1,957 2,791 4,109 1,780
Audit fees 31 1,603 9,540 1,517 2,169 3,109 1,341
Insurance 20 1,019 5,463 943 1,353 1,926 921
Printing 0 246 1,343 221 307 429 180
Programming 75 122 773 119 171 259 111
_________ _________ __________ _________ _________ _________ _________
Total expenses 848 52,607 339,655 44,069 57,579 82,700 36,020
Net investment income
(loss) 334 (21,339) 214,583 80,232 236,014 288,392 107,391
Realized and unrealized
gain on investments:
Net realized gain
on securities sold 0 75,785 1,690,989 5,492 6,981 1,808 16,730
Realized gain on expired
written option contracts 0 0 0 1,040 0 0 0
________ _________ _______ _______ _______ _________ ________
Total realized gain
on investments 0 75,785 1,690,989 6,532 6,981 1,808 16,730
Unrealized appreciation
on investments 6,681 379,367 2,336,498 537,745 452,522 339,459 11,965
_________ _________ __________ _________ _________ _________ _________
Net realized and unrealized
gain on investments 6,681 455,152 4,027,487 544,277 459,503 341,267 28,695
_________ _________ __________ _________ _________ _________ _________
Net increase in
net assets resulting
from operations 7,015 433,813 4,242,070 624,509 695,517 629,659 136,086
</TABLE>
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
STATEMENT OF CHANGES IN NET ASSETS
for the period from November 30, 1995 (inception) through
December 31, 1995
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO 1995
<S> <C>
Increase in net assets from operations:
Net investment income 334
Net unrealized appreciation 6,681
_________
Net increase in net assets
resulting from operations 7,015
Increase in net assets from unitholder
activity 798,343
_________
Total increase in net assets 805,358
Net assets, beginning of period 0
_________
Net assets, end of period 805,358
Undistributed net investment income included
in net assets:
Beginning of period 0
End of period 334
</TABLE>
<PAGE>
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
STATEMENT OF CHANGES IN NET ASSETS
for the years ended December 31, 1995 and 1994
<CAPTION>
GROWTH EQUITY PORTFOLIO 1995 1994
<S> <C> <C>
Increase (decrease) in net assets from operations:
Net investment (loss) (21,339) (18,923)
Net realized gain 75,785 143,213
Net unrealized appreciation (depreciation) 379,367 (308,736)
_________ _________
Net increase (decrease) in net assets
resulting from operations 433,813 (184,446)
Increase (decrease) in net assets from unitholder
activity 388,192 (518,840)
_________ _________
Total increase (decrease) in net assets 822,005 (703,286)
Net assets, beginning of year 2,539,192 3,242,478
__________ __________
Net assets, end of year 3,361,197 2,539,192
Undistributed net investment (loss) included
in net assets:
Beginning of year (37,905) (18,982)
End of year (59,244) (37,905)
</TABLE>
PAGE
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
STATEMENT OF CHANGES IN NET ASSETS
for the years ended December 31, 1995 and 1994
<CAPTION>
VALUE EQUITY PORTFOLIO 1995 1994
<S> <C> <C>
Increase (decrease) in net assets from operations:
Net investment income 214,583 113,776
Net realized gain 1,690,989 1,456,043
Net unrealized appreciation (depreciation) 2,336,498 (1,767,727)
_________ ___________
Net increase (decrease) in net assets
resulting from operations 4,242,070 (197,908)
Increase (decrease) in net assets from unitholder
activity (786,548) 1,505,251
_________ __________
Total increase in net assets 3,455,522 1,307,343
Net assets, beginning of year 16,824,891 15,517,548
__________ ___________
Net assets, end of year 20,280,413 16,824,891
Undistributed net investment income included
in net assets:
Beginning of year 916,382 802,606
End of year 1,130,965 916,382
</TABLE>
PAGE
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
STATEMENT OF CHANGES IN NET ASSETS
for the years ended December 31, 1995 and 1994
<CAPTION>
BALANCED PORTFOLIO 1995 1994
<S> <C> <C>
Increase (decrease) in net assets from operations:
Net investment income 80,232 73,263
Net realized gain 6,532 52,796
Net unrealized appreciation (depreciation) 537,745 (137,308)
_________ _________
Net increase (decrease) in net assets
resulting from operations 624,509 (11,249)
Increase (decrease) in net assets from unitholder
activity 378,817 (356,923)
_________ _________
Total increase (decrease) in net assets 1,003,326 (368,172)
Net assets, beginning of year 2,486,166 2,854,338
__________ __________
Net assets, end of year 3,489,492 2,486,166
Undistributed net investment income included
in net assets:
Beginning of year 376,114 302,851
End of year 456,346 376,114
</TABLE>
PAGE
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
STATEMENT OF CHANGES IN NET ASSETS
for the years ended December 31, 1995 and 1994
<CAPTION>
LONG-INTERMEDIATE FIXED INCOME PORTFOLIO 1995 1994
<S> <C> <C>
Increase (decrease) in net assets from operations:
Net investment income 236,014 232,697
Net realized gain 6,981 55,793
Net unrealized appreciation (depreciation) 452,522 (495,768)
_________ _________
Net increase (decrease) in net assets
resulting from operations 695,517 (207,278)
Increase (decrease) in net assets from unitholder
activity 263,582 (1,185,195)
_________ ___________
Total increase (decrease) in net assets 959,099 (1,392,473)
Net assets, beginning of year 3,763,313 5,155,786
__________ __________
Net assets, end of year 4,722,412 3,763,313
Undistributed net investment income included
in net assets:
Beginning of year 1,234,748 1,002,051
End of year 1,470,762 1,234,748
</TABLE>
PAGE
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
STATEMENT OF CHANGES IN NET ASSETS
for the years ended December 31, 1995 and 1994
<CAPTION>
SHORT-INTERMEDIATE FIXED INCOME PORTFOLIO 1995 1994
<S> <C> <C>
Increase (decrease) in net assets from operations:
Net investment income 288,392 325,371
Net realized gain (loss) 1,808 (9,633)
Net unrealized appreciation (depreciation) 339,459 (505,502)
_________ _________
Net increase (decrease) in net assets
resulting from operations 629,659 (189,764)
Decrease in net assets from unitholder
activity (738,676) (1,203,991)
_________ ___________
Total decrease in net assets (109,017) (1,393,755)
Net assets, beginning of year 6,181,533 7,575,288
__________ __________
Net assets, end of year 6,072,516 6,181,533
Undistributed net investment income included
in net assets:
Beginning of year 1,245,130 919,759
End of year 1,533,522 1,245,130
</TABLE>
PAGE
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
STATEMENT OF CHANGES IN NET ASSETS
for the years ended December 31, 1995 and 1994
<CAPTION>
MONEY MARKET PORTFOLIO 1995 1994
<S> <C> <C>
Increase (decrease) in net assets from operations:
Net investment income 107,391 91,263
Net realized gain (loss) 16,730 (12,117)
Net unrealized appreciation 11,965 1,106
_________ _________
Net increase in net assets
resulting from operations 136,086 80,252
Increase (decrease) in net assets from unitholder
activity (285,965) 515,219
_________ _________
Total increase (decrease) in net assets (149,879) 595,471
Net assets, beginning of year 2,715,644 2,120,173
__________ __________
Net assets, end of year 2,565,765 2,715,644
Undistributed net investment income included
in net assets:
Beginning of year 1,166,689 1,075,426
End of year 1,274,080 1,166,689
</TABLE>
PAGE
<PAGE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
NOTES TO FINANCIAL STATEMENTS
1. Organization:
The Alameda-Contra Costa Medical Association Collective
Investment Trust for Retirement Plans (the Trust) is a collective
investment trust which was established under the laws of the
State of California by the Alameda-Contra Costa Medical
Association (the Associaton) to be managed by a supervisory
comittee with Wells Fargo Bank, National Assocations (Wells
Fargo), acting as the custodial trustee (the Custodial Trustee)
under a Declaration of Trust dated February 9, 1990. The
Association is also administrator of the Trust pursuant to an
Administrative Services agreement between the Trust and the
Association. The Trust is registered with the Securities and
Exchange Commission as an open-end diversified management
investment company. Units of beneficial interest in the
Portfolios (the Units) are sold without a sales charge and are
available only to Retirement Plans.
The Trust offers seven investment portfolios, each with a
different investment objective, for the investment of funds held
in retirement plans. The Prospectus for the Trust includes
certain investment restrictions that cannot be changed for any
portfolios without the approval of a majority of the outstanding
units of that portfolio. These restrictions, amond other
matters, limit the purchase of certain securities of a particular
issuer to no more than 5% of the value of the total assets of
that portfolio. For purposes of this restriction, cash
equivalents (including commercial paper) with maturities of 90
days or less, are considered exempt.
2. Summary of Significant Accounting Policies:
Security Valuation:
Investments for which market quotations are readily available are
stated at market value, which is determined using the last
reported closing price. Securities traded over-the-counter are
stated at the last reported bid price or last current sales
price, as applicable. United States government and agency
obligations are valued at bid quotations from the Federal Reserve
Bank for identical or similar obligations. Short-term money
market instruments are calculated at bid quotations or by
reference to bid quotations for similar instruments of issuers
with similar credit ratings. Debt securities with remaining
maturities of 60 days or less are stated at amortized cost which
approximates market value.
PAGE
<PAGE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
NOTES TO FINANCIAL STATEMENTS, continued
2. Summary of Significant Accounting Policies:
Security Transactions and Related Investment Income:
Security transactions are accounted for on the trade date (date
the order to buy or sell is executed) and dividend income is
recorded on the ex-dividend date. Interest income is recorded on
the accrual basis. The cost of securities sold is computed on an
average cost basis.
Distributions:
The Trust does not declare any pay dividends on its investment
income. Income earned on assets in the portfolio is included in
the total value of assets of that portfolio as are realized gains
or losses from security transactions and unrealized appreciation
or depreciation on securities held.
Fund Valuation:
The value of participating units, upon admission to or withdrawal
from the Trust, is based upon the net asset value as of the
current month end date. There are no transaction fees charged.
Taxation:
As a group trust organized for the collective investment of the
assets of Retirement Plans, the Trust is exempt from income tax
pursuant to Revenue Ruling 81-100 of the Internal Revenue
Service.
3. Covered Call Options:
The Balanced Portfolio writes covered call options in which
premiums received are recorded as a liability which is marked to
market to reflect the current value of the options written. A
covered call option gives the holder the right to purchase the
underlying security which the Balanced Portfolio owns at any time
during the option period at a predetermined exercise price. The
risk in writing a covered call option is that the Balanced
Portfolio gives up the opportunity to participate in any increase
in the price of the underlying security beyond the exercise
price. Proceeds from covered call options exercised are
increased by the amount of premiums received.
PAGE
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
NOTES TO FINANCIAL STATEMENTS, continued
<CAPTION>
3. Covered Call Options, continued Number Cost
<S> <C> <C>
Balance at beginning of the year 2,000 3,697
Options exercised during the year:
Inter Bus Mach Call at 75, 01-21-95 (1,000) (2,657)
Options expired during the year:
Sun Micro System Inc Call at 35, 01-21-95 (1,000) (1,040)
_______ _______
Balance at end of year 0 0
</TABLE>
4. Investment Management and Administration:
Under the terms of the Declaration of Trust, the custodial
trustee will maintain possession of the assets of the portfolios
and perform certain other services. The custodial trustee will
be paid a quarterly fee for these services as specified in the
Declaration of Trust.
The Association will provide certain administrative and
accounting services to the Trust in accordance with the terms of
the Administrative Services Agreement. As compensation for its
services, the Association is paid a quarterly fee at the annual
rate of 45/100 of 1% of the aggregate fair market value of the
assets of the combined portfolios determined as of the last
business day of each calendar quarter, plus an additional $1,000
per month.
Portfolio management services will be provided by various
investment managers who will receive management fees according to
the terms of the related Investment Management Agreements.
5. Brokerage Commissions Paid to Affiliated Brokers:
During the year ended December 31, 1995, the International Value
Equity, Growth Equity, Value Equity and Balanced Portfolios paid
$0, $1,051, $4,360 and $0 respectively, to Kidder Peabody for
commissions, and paid $132, $9,194, $173,538 and $2,679,
respectively to Paine Webber for commissions. A broker for Paine
Webber, formerly Kidder Peabody, is a consultant for the Trust.
<PAGE>
<TABLE>
NOTES TO FINANCIAL STATEMENTS, continued
6. Purchases and Sales of Investment Securities:
The aggregate cost of purchases and proceeds form sales of investments (excluding short-term and U.S. government
securities for the year ended December 31, 1995, were as follows:
NOTE: International Value Equity inception date is November 30, 1995
<CAPTION>
Long- Short-
International Growth Value Intermediate Intermediate Money
Equity Equity Equity Balanced Fixed Income Fixed Income Market
<S> <C> <C> <C> <C> <C> <C> <C>
Purchases 483,215 1,340,920 19,228,097 448,924 0 149,205 0
Proceeds from sales 0 1,016,361 17,476,780 168,012 214,249 102,802 0
</TABLE>
<TABLE>
The aggregate cost of purchases and proceeds from sales of U.S. government securities for the year ended December 31,
1995 were as follows:
NOTE: International Value Equity inception date is November 30, 1995
<CAPTION>
Long- Short-
International Growth Value Intermediate Intermediate Money
Equity Equity Equity Balanced Fixed Income Fixed Income Market
<S> <C> <C> <C> <C> <C> <C> <C>
Purchases 0 0 0 200,000 1,011,372 978,656 2,300,125
Proceeds from sales 0 0 0 3,811 210,369 1,479,813 1,752,148
</TABLE>
PAGE
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
NOTES TO FINANCIAL STATEMENTS, continued
7. Unit Activity:
At December 31, 1995, there was an unlimited number of no par value units authorized for the portfolios of the Trust.
Transactions in Trust units for the year ended December 31, 1995, are as follows:
NOTE: International Value Equity inception date is November 30,1995.
<CAPTION>
Long-
Intermediate
International Equity Growth Equity Value Equity Balanced Fixed Income
Units Amount Units Amount Units Amount Units Amount Units Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Sales 0 0 5,510 81,588 6,346 675,829 3,238 140,517 1,604 83,084
Transfers from
other portfolios 79,824 798,343 42,756 622,375 1,780 181,391 9,653 411,863 11,597 612,389
Redemptions 0 0 (3,212) (43,693) (4,313) (430,977) (761) (33,752) (5,718) (296,865)
Transfers to
other portfolios 0 0 (18,990) (272,078)(10,912) (1,212,791) (3,225) (139,811) (2,484) (135,026)
______ _______ _______ ________ _______ __________ ______ ________ ______ _______
Net increase
(decrease) 79,824 798,343 26,064 388,192 (7,099) (786,548) 8,905 378,817 4,999 263,582
</TABLE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
NOTES TO FINANCIAL STATEMENTS, continued
7. Unit Activity:, continued
At December 31, 1995, there was an unlimited number of no par value units authorized for the portfolios of the Trust.
Transactions in Trust units for the year ended December 31, 1995, are as follows:
<CAPTION>
Short-
Intermediate
Fixed Income Money Market
Units Amount Units Amount
<S> <C> <C> <C> <C>
Sales 2,546 51,213 9,349 403,811
Transfers from
other portfolios 10,634 220,234 4,992 215,759
Redemptions (21,515) (423,834) (4,408) (189,176)
Transfers to
other portfolios (29,061) (586,289) (16,627) (716,359)
_______ ________ _______ ________
Net increase (decrease) (37,396) (738,676) (6,694) (285,965)
</TABLE>
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
NOTES TO FINANCIAL STATEMENTS, continued
8. Unit Activity:
At December 31, 1994, there was an unlimited number of no par value units authorized for the portfolios of the Trust.
Transactions in Trust units for the year ended December 31, 1994, are as follows:
NOTE: International Value Equity inception date is November 30, 1995
<CAPTION>
Long-
Intermediate
International Equity Growth Equity Value Equity Balanced Fixed Income
Units Amount Units Amount Units Amount Units Amount Units Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Sales 0 0 4,926 60,881 9,218 875,603 881 32,200 984 48,240
Transfers from
other portfolios 0 0 28,101 339,079 15,234 1,486,530 2,931 109,980 3,947 190,378
Redemptions 0 0 (14,571) (178,462)(5,297) (504,459) (6,087) (222,575) (6,422) (311,503)
Transfers to
other portfolios 0 0 (58,242) (740,338)(3,765) (352,423) (7,695) (276,528) (22,098) (1,112,310)
_____ _____ _______ ________ ______ _________ ______ ________ _______ __________
Net increase
(decrease) 0 0 (39,786) (518,840)15,390 1,505,251 (9,970) (356,923) (23,589) (1,185,195)
</TABLE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
NOTES TO FINANCIAL STATEMENTS, continued
8. Unit Activity:, continued
At December 31, 1994, there was an unlimited number of no par value units authorized for the portfolios of the Trust.
Transactions in Trust units for the year ended December 31, 1994, are as follows:
<CAPTION>
Short-
Intermediate
Fixed Income Money Market
Units Amount Units
Amount
<S> <C> <C> <C> <C>
Sales 5,632 106,935 10,311 425,635
Transfers from
other portfolios 6,884 132,156 45,319 1,855,081
Redemptions (37,218) (706,088) (21,011) (870,886)
Transfers to
other portfolios (38,964) (736,994) (21,640) (894,611)
_______ __________ _______ ________
Net increase (decrease) (63,666) (1,203,991) 12,979 515,219
</TABLE>
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
NOTES TO FINANCIAL STATEMENTS, continued
9. Financial Highlights:
Financial highlights for each unit outstanding for the period November 30, 1995 (inception) through December 31, 1995,
is as follows:
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO 1995
<S> <C>
Net asset value, beginning of period 10.00
Net investment income 0
Net realized and unrealized gain (loss) .09
_____
Total from investment operations .09
Net asset value, end of period 10.09
Total Return 0.90%
Ratios and Supplemental Data
Net assets at end of period (in000's) 805
Ratio of expenses to average net assets 0.11%
Ratio of net investment income to
average net assets 0.04%
Portfolio turnover rate 0%
Average commission rate per share 0.0600
</TABLE>
PAGE
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
NOTES TO FINANCIAL STATEMENTS, continued
9. Financial Highlights:
Financial highlights for each unit outstanding for the years ended December 31, 1995, 1994 and 1993, and the period
October 1, 1992 (inception) through December 31, 1992, are as follows:
<CAPTION>
GROWTH EQUITY PORTFOLIO 1995 1994 1993 1992
<S> <C> <C> <C> <C>
Net asset value, beginning of year 12.12 13.01 11.74 10.00
Net investment gain (loss) (.07) (.11) (.07) (.01)
Net realized and unrealized gain (loss) 2.22 (.78) 1.34 1.75
_____ _____ _____ _____
Total from investment operations 2.15 (.89) 1.27 1.74
Net asset value, end of year 14.27 12.12 13.01 11.74
Total Return 17.74% (6.84)% 10.82% 69.60% <F1>
Ratios and Supplemental Data
Net assets at end of year (in 000's) 3,361 2,539 3,242 1,660
Ratio of expenses to average net assets 1.67% 1.86% 1.79% .41%
Ratio of net investment income to
average net assets (.68)% (.72)% (.68)% (.07)%
Portfolio turnover rate 33.63% 52.49% 38.58% 12.95%
Average commission rate per share 0.1339
<FN>
<F1>
annualized
</FN>
</TABLE>
PAGE
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
NOTES TO FINANCIAL STATEMENTS, continued
9. Financial Highlights:
Financial highlights for each unit outstanding for the years ended December 31, 1995, 1994, 1993, 1992 and 1991 are as
follows:
<CAPTION>
VALUE EQUITY PORTFOLIO 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year 94.93 95.88 83.11 73.63 60.74
Net investment income 1.48 .21 .78 1.54 1.64
Net realized and unrealized gain (loss) 22.79 (1.16) 11.99 7.94 11.25
_____ ______ _____ _____ _____
Total from investment operations 24.27 (.95) 12.77 9.48 12.89
Net asset value, end of year 119.20 94.93 95.88 83.11 73.63
Total Return 25.57% (.99)% 15.37% 12.88% 21.22%
Ratios and Supplemental Data
Net assets at end of year (in 000's) 20,280 16,825 15,518 12,622 11,761
Ratio of expenses to average net assets 1.82% 1.99% 1.99% 2.01% 2.16%
Ratio of net investment income to
average net assets 1.15% .70% 1.18% 1.75% 2.39%
Portfolio turnover rate 103.58% 116.01% 65.85% 85.40% 75.67%
Average commission rate per share 0.1486
</TABLE>
PAGE
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
NOTES TO FINANCIAL STATEMENTS, continued
9. Financial Highlights:
Financial highlights for each unit outstanding for the years ended December 31, 1995, 1994, 1993, 1992 and 1991 are as
follows:
<CAPTION>
BALANCED PORTFOLIO 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year 37.05 37.04 34.19 32.48 27.43
Net investment income .40 1.67 1.55 .65 .76
Net realized and unrealized gain (loss) 8.46 (1.66) 1.30 1.06 4.29
_____ ______ _____ _____ _____
Total from investment operations 8.86 .01 2.85 1.71 5.05
Net asset value, end of year 45.91 37.05 37.04 34.19 32.48
Total Return 23.91% .03% 8.34% 5.26% 18.41%
Ratios and Supplemental Data
Net assets at end of year (in 000's) 3,489 2,486 2,854 3,223 2,593
Ratio of expenses to average net assets 1.47% 1.63% 1.63% 1.64% 1.78%
Ratio of net investment income to
average net assets 2.68% 3.09% 2.57% 2.59% 3.37%
Portfolio turnover rate 6.30% 5.18% 4.75% 17.78% 13.61%
Average commission rate per share 0.1872
</TABLE>
PAGE
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
NOTES TO FINANCIAL STATEMENTS, continued
9. Financial Highlights:
Financial highlights for each unit outstanding for the years ended December 31, 1995, 1994, 1993, 1992 and 1991 are as
follows:
<CAPTION>
LONG-INTERMEDIATE FIXED INCOME PORTFOLIO 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year 48.23 50.73 46.46 43.67 38.04
Net investment income 1.89 5.96 2.94 3.03 2.36
Net realized and unrealized gain (loss) 6.76 (8.46) 1.33 (.24) 3.27
_____ ______ _____ _____ _____
Total from investment operations 8.65 (2.50) 4.27 2.79 5.63
Net asset value, end of year 56.88 48.23 50.73 46.46 43.67
Total Return 17.93% (4.93)% 9.19% 6.39% 14.80%
Ratios and Supplemental Data
Net assets at end of year (in 000's) 4,722 3,763 5,156 4,908 4,843
Ratio of expenses to average net assets 1.35% 1.49% 1.49% 1.52% 1.70%
Ratio of net investment income to
average net assets 5.53% 5.64% 5.44% 6.11% 6.49%
Portfolio turnover rate 5.95% 0% 10.68% 9.79% 20.60%
Average commission rate 14.86%
</TABLE>
PAGE
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
NOTES TO FINANCIAL STATEMENTS, continued
9. Financial Highlights:
Financial highlights for each unit outstanding for the years ended December 31, 1995, 1994, 1993, 1992 and 1991 are as
follows:
<CAPTION>
SHORT-INTERMEDIATE FIXED INCOME PORTFOLIO 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year 18.85 19.35 18.19 17.15 15.37
Net investment income 1.48 1.45 .78 .01 .85
Net realized and unrealized gain (loss) .57 (1.95) .38 1.03 .93
_____ ______ _____ _____ _____
Total from investment operations 2.05 (.50) 1.16 1.04 1.78
Net asset value, end of year 20.90 18.85 19.35 18.19 17.15
Total Return 10.88% (2.58)% 6.38% 6.06% 11.58%
Ratios and Supplemental Data
Net assets at end of year (in 000's) 6,073 6,182 7,575 6,747 3,336
Ratio of expenses to average net assets 1.37% 1.51% 1.47% 1.47% 1.68%
Ratio of net investment income to
average net assets 4.76% 4.78% 4.75% 5.16% 6.04%
Portfolio turnover rate 19.21% 0% 25.60% 6.69% 41.22%
</TABLE>
PAGE
<PAGE>
<TABLE>
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
NOTES TO FINANCIAL STATEMENTS, continued
9. Financial Highlights:
Financial highlights for each unit outstanding for the years ended December 31, 1995, 1994, 1993, 1992 and 1991 are as
follows:
<CAPTION>
MONEY MARKET PORTFOLIO 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year 41.80 40.78 39.94 38.66 36.77
Net investment income 3.91 1.15 <F1> 9.38 7.29 2.74
Net realized and unrealized gain (loss) (1.68) ( .13) <F1>(8.54) (6.01) (.85)
_____ ______ _____ _____ _____
Total from investment operations 2.23 1.02 .84 1.28 1.89
Net asset value, end of year 44.03 41.80 40.78 39.94 38.66
Total Return 5.33% 2.50% 2.10% 3.31% 5.14%
Ratios and Supplemental Data
Net assets at end of year (in 000's) 2,566 2,716 2,120 3,481 7,415
Ratio of expenses to average net assets 1.38% 1.50% 1.59% 1.55% 1.76%
Ratio of net investment income to
average net assets 4.11% 2.87% 3.60% 4.33% 5.10%
<FN>
<F1>
Per share amounts have been calculated using the average shares outstanding during the period.
</FN>
</TABLE>
<PAGE>
PART C OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements
The Financial Statements filed as part of this
Registration Statement are as follows:
Report of Independent Auditors dated February 9, 1996;
Schedules of Investments at December 31, 1995;
Statements of Assets and Liabilities at December 31,
1995; Statements of Operations for the year ended
December 31, 1995; Statements of Changes in Net Assets
for the years ended December 31, 1994 and December 31,
1995.
(b) Exhibits
(1) Declaration of Trust dated February 9, 1990,<F1>
Amendment to Declaration of Trust dated June 29,
1992 <F2>
(2) Rules and Procedures of the Supervisory
Committee <F1>
(3) Not applicable
(4) Not applicable
(5) Investment Management Agreement <F1><F2><F3><F4>
(6) Not applicable
(7) Not applicable
(8) Fee Schedule between the Trust and the Custodial
Trustee <F5>
(9) Administrative Services Agreement between the
Trust and the Association <F1>
Addendum to Administrative Services Agreement <F6>
(10) Opinion and Consent of Hassard Bonnington
(11) Consent of Coopers & Lybrand L.L.P., independent
accountants
(12) Not applicable
(13) Form of Investment Letter <F1>
(14) Model Plan Documents <F6>
(15) Not applicable
(16) Not applicable
Item 25. Persons Controlled By or Under Common Control With
Registrant
<TABLE>
Item 26. Number of Holder of Securities
<CAPTION>
Number of
Title of Class Record Holders Date
<S> <C> <C>
Units of International
Value Equity Portfolio 18 December 31, 1995
Units of Value Equity
Portfolio 184 December 31, 1995
Units of Growth Equity
Portfolio 68 December 31, 1995
Units of Balanced Portfolio 66 December 31, 1995
Units of Long-Intermediate 72 December 31, 1995
Fixed Income Portfolio
Units of Short-Intermediate 77 December 31, 1995
Fixed Income Portfolio
Units of Money Market 65 December 31, 1995
Portfolio
</TABLE>
Item 27. Indemnification <F7>
Item 28. Business and Other Connections of Investment
Adviser <F1><F2>
[FN]
<F1>
Incorporated by reference to same item of Registration Statement
filed December 20, 1989.
<F2>
Incorporated by reference to same item of Post Effective
Amendment No. 3 filed July 2, 1992.
<F3>
Incorporated by reference to same item of Post Effective
Amendment No. 2 filed April 29, 1992.
<F4>
Incorporated by reference to same item of Post Effective
Amendment No. 6 filed March 1, 1995.
<F5>
Incorporated by reference to same item of Post Effective
Amendment No. 1 filed February 23, 1990.
<F6>
Incorporated by reference to Post Effective Amendment
No. 1 filed April 29, 1991.
<F7>
Incorporated by reference to pre-Effective Amendment
No. 3 filed July 16, 1990.
[/FN]
<TABLE>
Item 29. Principal Underwriters
(a) The Securities and Exchange Commission may regard
the Alameda-Contra Costa Medical Association as the
Registrant's statutory principal underwriter, because of an
agreement with the Trust by the Association to inform its
existing and potential members and Participants of the
availability of the Units as an investment option for assets of
Retirement Plans and because of its establishment of the Trust.
The Alameda-Contra Costa Medical Association does not
act as a principal underwriter, depositor or investment advisor
to any other investment companies. The Trust's assets
are not used to pay the costs of distribution.
(b) Information with respect to each Council member and
officer (i.e., each officer with the title of
executive vice-president or higher) of the Alameda-Contra Costa
Medical Association is furnished in the following table:
<CAPTION>
Position and Position and
Name and Principal Offices with Offices with
Business Address <F8> Underwriter Registrant
<S> <C> <C>
Lyle N. Yates President
and Council Member
Patricia L. Austin Vice-President
and Council Member
Ernest E. Kundert Secretary-Treasurer
and Council Member
Frank E. Staggers Immediate Past President
and Council Member
Istvan Borocz Council Member
James Bryant Council Member
Ronald Cooper Council Member
Sharon Drager Council Member
Thomas Forde Council Member
Michael Gorin Council Member
John Hadley Council Member
Roger Iliff Council Member
William H. Johnson, Jr. Council Member
Albert Kahane Council Member
Howard Maccabee Council Member
Mary Alice Murphy Council Member
Michael Ranahan Council Member
Gerald Rogan Council Member
Stephen Ross Council Member
Colin Sinclair Council Member
Donald Townsend Council Member
Steven Una Council Member
Stephen Van Meter Council Member
John Wheaton Council Member
Bernard Wolf Council Member
<FN>
<F8>
All at 6230 Claremont Avenue, Oakland CA 94618
</FN>
</TABLE>
Item 30. Location of Accounts and Records <F1>
Item 31. Management Services <F1>
Item 32. Undertakings <F8>
The Registrant undertakes to furnish each person to
a prospectus is delivered with a copy of the Registrant's
latest annual report to shareholders, upon request and
without charge.
[FN]
<F1>
Incorporated by reference to same item of Registration Statement
filed December 20, 1989.
<F8>
All of 6230 Claremont Avenue, Oakland CA 94618.
[/FN]
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and
the Investment Company Act of 1940, the Registrant has
duly caused this Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in the
City of Oakland, and State of California on the 26th day of
April, 1996.
Alameda-Contra Costa Medical Association Collective Investment
Trust for Retirement Plans
By: L. Richard Mello
(Signature)
Its: Treasurer (Principal Financial Officer)
POWER OF ATTORNEY
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following
persons in the capacities and on the dates indicated.
Robert E. Gwynn, M.D. Chairman, Chief April 26, 1996
Executive Officer and
Member of the
Supervisory Committee
(Principal Executive
Officer)
Klaus R. Dehlinger, M.D. Member of the April 26, 1996
Supervisory Committee
Bruce M. Fisher, M.D. Vice Chairman, Member April 26, 1996
of the Supervisory
Committee
William R. Forsythe, M.D. Member of the April 26, 1996
Supervisory Committee
Carl Goetsch, M.D. Member of the April 26, 1996
Supervisory Committee
Albert K. Greenberg, M.D. Member of the April 26, 1996
Supervisory Committee
Robert R. Haumeder, M.D. Member of the April 26, 1996
Supervisory Committee
Richard Marchick, M.D. Member of the April 26, 1996
Supervisory Committee
Robert J. Oakes, M.D. Member of the April 26, 1996
Supervisory Committee
Richard Rihn, M.D. Member of the April 26, 1996
Supervisory Committee
William N. Guertin Secretary and April 26, 1996
Member of the
Supervisory Committee
L. Richard Mello Treasurer and Member April 26, 1996
of the Supervisory
Committee (Principal
Financial Officer)
By: L. Richard Mello
(signature)
Attorney-in-fact
Registration No. 33-32684
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
EXHIBITS to FORM N-lA
Registration Statement Under The Securities Act of 1933
Post-Effective Amendment No. 7 and The Investment Company Act of
1940
Amendment No. 10
ALAMEDA-CONTRA COSTA MEDICAL ASSOCIATION COLLECTIVE INVESTMENT
TRUST FOR RETIREMENT PLANS
EXHIBIT INDEX
Exhibit
Number
(10) Opinion and consent of Hassard Bonnington
(11) Consent of Coopers & Lybrand L.L.P., Independent Accountants
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> VALUE EQUITY
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 17,812,987
<INVESTMENTS-AT-VALUE> 20,267,575
<RECEIVABLES> 55,575
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 20,323,150
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 42,737
<TOTAL-LIABILITIES> 42,737
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 10,665,732
<SHARES-COMMON-STOCK> 170,135
<SHARES-COMMON-PRIOR> 177,234
<ACCUMULATED-NII-CURRENT> 1,130,965
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 6,029,128
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,454,588
<NET-ASSETS> 20,280,413
<DIVIDEND-INCOME> 446,151
<INTEREST-INCOME> 95,723
<OTHER-INCOME> 12,364
<EXPENSES-NET> 339,655
<NET-INVESTMENT-INCOME> 214,583
<REALIZED-GAINS-CURRENT> 1,690,989
<APPREC-INCREASE-CURRENT> 2,336,498
<NET-CHANGE-FROM-OPS> 4,242,070
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 8,126
<NUMBER-OF-SHARES-REDEEMED> 15,225
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 3,455,522
<ACCUMULATED-NII-PRIOR> 916,382
<ACCUMULATED-GAINS-PRIOR> 4,338,139
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 176,999
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 339,655
<AVERAGE-NET-ASSETS> 18,615,080
<PER-SHARE-NAV-BEGIN> 94.93
<PER-SHARE-NII> 1.48
<PER-SHARE-GAIN-APPREC> 22.79
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 119.20
<EXPENSE-RATIO> 1.82
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> BALANCED
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 2,816,346
<INVESTMENTS-AT-VALUE> 3,470,332
<RECEIVABLES> 26,470
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3,496,802
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 7,310
<TOTAL-LIABILITIES> 7,310
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,162,839
<SHARES-COMMON-STOCK> 76,005
<SHARES-COMMON-PRIOR> 67,100
<ACCUMULATED-NII-CURRENT> 456,346
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 216,321
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 653,986
<NET-ASSETS> 3,489,492
<DIVIDEND-INCOME> 33,855
<INTEREST-INCOME> 90,446
<OTHER-INCOME> 0
<EXPENSES-NET> 44,069
<NET-INVESTMENT-INCOME> 80,232
<REALIZED-GAINS-CURRENT> 6,532
<APPREC-INCREASE-CURRENT> 537,745
<NET-CHANGE-FROM-OPS> 624,509
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 12,891
<NUMBER-OF-SHARES-REDEEMED> 3,986
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1,003,326
<ACCUMULATED-NII-PRIOR> 376,114
<ACCUMULATED-GAINS-PRIOR> 209,789
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 17,929
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 44,069
<AVERAGE-NET-ASSETS> 2,995,901
<PER-SHARE-NAV-BEGIN> 37.05
<PER-SHARE-NII> .40
<PER-SHARE-GAIN-APPREC> 8.46
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 45.91
<EXPENSE-RATIO> 1.47
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> LONG INTERMEDIATE FIXED INCOME
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 4,349,637
<INVESTMENTS-AT-VALUE> 4,711,393
<RECEIVABLES> 64,611
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 4,776,004
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 53,592
<TOTAL-LIABILITIES> 53,592
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,725,926
<SHARES-COMMON-STOCK> 83,031
<SHARES-COMMON-PRIOR> 78,032
<ACCUMULATED-NII-CURRENT> 1,470,762
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 163,968
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 361,756
<NET-ASSETS> 4,722,412
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 293,593
<OTHER-INCOME> 0
<EXPENSES-NET> 57,579
<NET-INVESTMENT-INCOME> 236,014
<REALIZED-GAINS-CURRENT> 6,981
<APPREC-INCREASE-CURRENT> 452,522
<NET-CHANGE-FROM-OPS> 695,517
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 13,201
<NUMBER-OF-SHARES-REDEEMED> 8,202
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 959,099
<ACCUMULATED-NII-PRIOR> 1,234,748
<ACCUMULATED-GAINS-PRIOR> 156,987
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 20,475
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 57,579
<AVERAGE-NET-ASSETS> 4,265,109
<PER-SHARE-NAV-BEGIN> 48.23
<PER-SHARE-NII> 1.89
<PER-SHARE-GAIN-APPREC> 6.76
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 56.88
<EXPENSE-RATIO> 1.35
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 4
<NAME> SHORT INTERMEDIATE FIXED INCOME
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 5,922,142
<INVESTMENTS-AT-VALUE> 5,994,197
<RECEIVABLES> 124,142
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 6,118,339
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 45,823
<TOTAL-LIABILITIES> 45,823
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4,397,070
<SHARES-COMMON-STOCK> 290,526
<SHARES-COMMON-PRIOR> 327,922
<ACCUMULATED-NII-CURRENT> 1,533,522
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 69,869
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 72,055
<NET-ASSETS> 6,072,516
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 371,092
<OTHER-INCOME> 0
<EXPENSES-NET> 82,700
<NET-INVESTMENT-INCOME> 288,392
<REALIZED-GAINS-CURRENT> 1,808
<APPREC-INCREASE-CURRENT> 339,459
<NET-CHANGE-FROM-OPS> 629,659
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 13,180
<NUMBER-OF-SHARES-REDEEMED> 50,576
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (109,017)
<ACCUMULATED-NII-PRIOR> 1,245,130
<ACCUMULATED-GAINS-PRIOR> 68,061
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 30,205
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 82,700
<AVERAGE-NET-ASSETS> 6,052,600
<PER-SHARE-NAV-BEGIN> 18.85
<PER-SHARE-NII> 1.48
<PER-SHARE-GAIN-APPREC> .57
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 20.90
<EXPENSE-RATIO> 1.37
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 5
<NAME> MONEY MARKET
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 2,377,485
<INVESTMENTS-AT-VALUE> 2,384,947
<RECEIVABLES> 187,188
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,572,135
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6,370
<TOTAL-LIABILITIES> 6,370
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,345,533
<SHARES-COMMON-STOCK> 58,275
<SHARES-COMMON-PRIOR> 64,969
<ACCUMULATED-NII-CURRENT> 1,274,080
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (61,310)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 7,462
<NET-ASSETS> 2,565,765
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 143,411
<OTHER-INCOME> 0
<EXPENSES-NET> 36,020
<NET-INVESTMENT-INCOME> 107,391
<REALIZED-GAINS-CURRENT> 16,730
<APPREC-INCREASE-CURRENT> 11,965
<NET-CHANGE-FROM-OPS> 136,086
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 14,341
<NUMBER-OF-SHARES-REDEEMED> 21,035
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (149,879)
<ACCUMULATED-NII-PRIOR> 1,166,689
<ACCUMULATED-GAINS-PRIOR> (78,040)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 13,442
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 36,020
<AVERAGE-NET-ASSETS> 2,610,847
<PER-SHARE-NAV-BEGIN> 41.80
<PER-SHARE-NII> 3.91
<PER-SHARE-GAIN-APPREC> (1.68)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 44.03
<EXPENSE-RATIO> 1.38
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 6
<NAME> GROWTH EQUITY
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 2,856,529
<INVESTMENTS-AT-VALUE> 3,354,406
<RECEIVABLES> 14,081
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3,368,487
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 7,290
<TOTAL-LIABILITIES> 7,290
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,622,322
<SHARES-COMMON-STOCK> 235,552
<SHARES-COMMON-PRIOR> 209,488
<ACCUMULATED-NII-CURRENT> (59,244)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 300,242
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 497,877
<NET-ASSETS> 3,361,197
<DIVIDEND-INCOME> 23,662
<INTEREST-INCOME> 7,606
<OTHER-INCOME> 0
<EXPENSES-NET> 52,607
<NET-INVESTMENT-INCOME> (21,339)
<REALIZED-GAINS-CURRENT> 75,785
<APPREC-INCREASE-CURRENT> 379,367
<NET-CHANGE-FROM-OPS> 433,813
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 48,266
<NUMBER-OF-SHARES-REDEEMED> 22,202
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 822,005
<ACCUMULATED-NII-PRIOR> (37,905)
<ACCUMULATED-GAINS-PRIOR> 224,457
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 25,140
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 52,607
<AVERAGE-NET-ASSETS> 3,158,230
<PER-SHARE-NAV-BEGIN> 12.12
<PER-SHARE-NII> (.07)
<PER-SHARE-GAIN-APPREC> 2.22
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.27
<EXPENSE-RATIO> 1.67
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 7
<NAME> INTERNATIONAL EQUITY
<S> <C>
<PERIOD-TYPE> 1-MO
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> DEC-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 982,742
<INVESTMENTS-AT-VALUE> 989,423
<RECEIVABLES> 10,000
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 999,423
<PAYABLE-FOR-SECURITIES> 193,217
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 848
<TOTAL-LIABILITIES> 194,065
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 798,343
<SHARES-COMMON-STOCK> 79,824
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 334
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 6,681
<NET-ASSETS> 805,358
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,182
<OTHER-INCOME> 0
<EXPENSES-NET> 848
<NET-INVESTMENT-INCOME> 334
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 6,681
<NET-CHANGE-FROM-OPS> 7,015
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 79,824
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 805,358
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 236
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 848
<AVERAGE-NET-ASSETS> 797,389
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> .09
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.09
<EXPENSE-RATIO> .11
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
Firm: Hassard Bonnington
Two Embarcadero Center
Suite 1800
San Francisco, CA 94111-3993
April 18, 1996
To: Alameda-Contra Costa Medical Association Collective
Investment Trust for Retirement Plans
6230 Claremont Avenue
Oakland, CA 94618
Re: Opinion of Counsel and Consent
Ladies and Gentlemen:
This opinion is being furnished to you as Exhibit 10 to Post
Effective No. 8 of the Registration Statement of the Alameda-
Contra Costa Medical Association Collective Investment Trust for
Retirement Plans, and relates to the proposed offering of an
indefinite number of units of seven separate investment
portfolios of the Registrant. We are of the opinion that the
units to which Post Effective Amendment No. 8 relates will, when
sold, be legally issued, fully paid and nonassessable.
We further consent to the filing of this opinion as Exhibit 10 to
Post Effective Amendment No. 8 and consent to the reference to
our firm as counsel for the Registrant.
Very truly yours,
Hassard Bonnington
Phillip J. Goldberg
(Signature)
Firm: Coopers & Lybrand, L.L.P.
A Professional Services Firm
Consent of Independent Auditors
We consent to the inclusion in Post-Effective Amendment No. 8 to
the Registration Statement on Form N-1A (File No. 33-32864) of
Alameda-Contra Costa Medical Association Collective Investment
Trust for Retirement Plans of our report dated February 9, 1996
on our audit of the financial statements and financial highlights
for the year ended December 31, 1995.
Coopers & Lybrand, L.L.P.
(Signature)
Oakland, California
April 26, 1996
