<PAGE>
- --------
Galaxy
Fund II
- --------
[ARTWORK APPEARS HERE]
- --------------------------------------------------------------------------------
Galaxy Fund II Report
- --------------------------------------------------------------------------------
Large Company Index Fund * Small Company Index Fund *
Utility Index Fund * U.S. Treasury Index Fund * Municipal Bond Fund
------------------
Semi-Annual
Report
For the
Six Months Ended
September 30, 1995
------------------
<PAGE>
- --------------
Chairman's
Message
- --------------
Dear Galaxy Fund II Shareholder:
Enclosed is your Galaxy Fund II report for the six months ending September 30,
1995. During this time, low interest rates and inflation extended the stock and
bond market rallies that began earlier in the year. Since the Galaxy Fund II
Index portfolios performed closely in line with their target indexes, and the
Municipal Bond Fund exceeded its market benchmark, the Funds' shareholders made
the most of these rallies and continued to earn attractive returns.
Index funds offer an easy way to expose your portfolio to specific market
sectors with the potential for stronger returns plus lower volatility, expenses
and taxes. By mirroring specific market benchmarks, index funds may deliver
returns that are higher than funds with active portfolio management.
Because they invest in the broad range of securities that their target
indices represent, index funds typically fluctuate less in value than
investments in individual industries or securities. In addition, index fund
portfolios generally have fewer purchases and sales of stocks because they hold
a fixed basket of securities. This can minimize fees and other fund expenses.
The average managed stock fund charged shareholders 1.39% of assets for
management fees and other operational expenses in 1994, according to Morningstar
Mutual Funds, Inc., a mutual fund tracking service. In contrast, the Galaxy
Index Funds charged just 0.40%.
A fixed portfolio can also reduce the taxes you pay on capital gains
distributions. By law, mutual funds have to pass on to shareholders at least 95%
of the net gains they incur from trades in their portfolios. With a fixed
portfolio, index funds typically have less in gains to distribute. This lets you
minimize your taxes and keep more of your money at work in the market. Since the
Galaxy Fund II portfolios presently have no loads or sales charges more of what
you invest up front goes to work for you, too.
In addition to summarizing previous market activity and exploring where the
markets might be headed, this report discusses the individual performances of
each Galaxy Fund II portfolio. You'll also find lists of securities the
portfolios held when the period ended, as well as financial statements for each
of the Funds. For further information about this material, or to learn more
about Galaxy funds and services, please call our Investment Specialists at
1-800-628-0414.
Sincerely,
/s/ Dwight E. Vicks
Dwight E. Vicks, Jr.
Chairman of the Board of Trustees
Mutual Funds:
. are not bank deposits
. are not FDIC insured
. are not obligations of Fleet Bank
. are not guaranteed by Fleet Bank
. are subject to investment risks including possible loss of principal amount
invested
<PAGE>
- -------------------
Market Overview
- -------------------
"After rising for more than a year, interest rates eased in 1995's second
quarter. By that time, economic growth had moderated and the Federal
Reserve Board had become less worried about inflation."
Market Overview
By Fleet Investment Advisors Inc.
Stock and bond prices moved significantly higher over the past six months,
extending the rallies of 1995's first quarter. An improving economy, with low
interest rates and inflation, provided fertile ground for these gains and
produced solid returns for the Galaxy Fund II portfolios.
The Economy's "Soft Landing"
After rising for more than a year, interest rates eased in 1995's second
quarter. By that time, economic growth had moderated and the Federal Reserve
Board had become less worried about inflation. In April, the Commerce Department
reported that the Gross Domestic Product had improved at a real (inflation-
adjusted) annual rate of 2.8% in the first quarter of 1995 down from 5.1% the
quarter before. The annual rate of inflation for the quarter was 3.2%, up
moderately from 2.6% for 1994.
At the same time, corporate earnings were sharply higher. This helped
convince investors that the Federal Reserve Board had achieved an economic "soft
landing" that could extend the current expansion without high inflation.
Propelled by extraordinary gains in the technology sector, stocks broke new
highs for much of the second quarter. By the end of the quarter, the Standard &
Poor's 500 Composite Index, an unmanaged index of the common stocks of 500
leading United States businesses, had gained 9.5%. Convinced the Fed would soon
cut interest rates to ensure sustained growth, the bond market moved higher,
too. At mid year stronger prices had sliced the yields on long-term Treasury
bonds from 7.5% to 6.65%.
Stock and bond prices corrected briefly in the third quarter of 1995. On
July 6, the Fed lowered its short-term Fed Funds rate from 6% to 5.75%, the
first cut in nearly three years. At first, bond prices responded positively,
dri-
1
<PAGE>
- -------------------
Market Overview
- -------------------
"In the months ahead slow growth should keep inflation in check and help
interest rates to stay relatively low."
ving long-term Treasury yields to a 17-month low of 6.49%. Eventually, however,
bond investors became concerned by news of stronger economic growth that
threatened to re-ignite inflation. By July 21, bond prices had fallen enough to
boost long-term yields to 6.96%. At that point, with no evidence that inflation
was rising, demand for bonds increased and their prices improved. However,
prices dropped again in August as confusion lingered about the economy. By
September, it became clear that economic growth was slowing. This news and the
belief that the Fed would cut rates again caused bond prices to surge higher.
When the third quarter closed, long-term Treasury yields had fallen to
6.5%. Stock prices also lost ground temporarily as technology investors took
profits and higher yields made bonds much more attractive. As bond prices
improved and their yields fell, however, stocks regained their footing. Although
many companies reported slower earnings, stock investors believed low inflation
would restrain interest rates from rising too dramatically which would keep the
economy growing. With strong gains for stocks in September, the S&P 500 Index
returned 7.95% in the quarter.
Slow Growth, Low Inflation
In the months ahead slow growth should keep inflation in check and help
interest rates to stay relatively low. Fleet Investment Advisors believes the
Gross Domestic Product for 1995 will be just 2% after adjusting for an inflation
rate
2
<PAGE>
- -------------------
Market Overview
- -------------------
"Bond prices should be more stable in this environment than they've been
for several years. While stock investors may switch their focus to
different sectors, stock prices should show steady gains over all. "
of approximately 2.8%. If the economy becomes too sluggish, the Fed may cut
interest rates another 1/4%. After that, however, the economy should improve and
rates should start to bottom. If the economy grows 2.5% next year, as Fleet
expects, there shouldn't be much room for inflation or interest rates to rise.
Bond prices should be more stable in this environment than they've been for
several years. While stock investors may switch their focus to different
sectors, stock prices should show steady gains over all. Corporate earnings
remain surprisingly strong and should continue to benefit from recent
improvements in productivity as well as sustained growth in the economy.
Performance At-A-Glance
Average Annual Returns as of September 30, 1995
LARGE COMPANY INDEX FUND Inception Date 10/1/90
18.05%
29.15%
14.51%
16.33%
SMALL COMPANY INDEX FUND Inception Date 10/1/90
20.20%
26.10%
15.54%
19.57%
UTILITY INDEX FUND Inception Date 1/5/93
20.38%
24.54%
10.54%
U.S. TREASURY INDEX FUND Inception Date 6/4/91
7.97%
13.28%
6.22%
8.47%
MUNICIPAL BOND FUND Inception Date 4/15/93
5.20%
9.87%
5.46%
*Six month results are total returns for the period April 1, 1995 through
September 30, 1995. The performance data quoted represents past performance and
the investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than their
original cost.
3
<PAGE>
- ---------------------
Portfolio Reviews
- ---------------------
Galaxy Fund II Large Company
Index Fund
[PHOTO APPEARS HERE]
By G. Jay Evans, CFA
Portfolio Manager
The Galaxy Fund II Large Company Index Fund seeks to match the price and yield
performance of the Standard & Poor's 500 Composite Stock Price Index (the "S&P
Index") by investing in publicly traded U.S. stocks according to their
representation in the S&P Index. The Fund is also structured to deliver the same
volatility and risk as the S&P Index. For the six months ended September 30,
1995, the S&P Index had a total return of 18.25%. During the same period, the
Fund achieved a net total return of 18.05% (after the deduction of operating
expenses). Over the last 12 months, the S&P Index recorded a total return of
29.75%, versus a return of 29.15% for the Fund (after the deduction of operating
expenses).
During the last year, the Fund's correlation with the S&P Index was 99.96%.
Correlation coefficients measure the degree to which fund performances after
expenses move in line with their target index during specific periods. A high
correlation coefficient means that the Galaxy Fund II Large Company Index Fund
generated results that closely tracked the S&P Index. By carefully managing the
expenses of the Fund over the last six months, we assured that shareholders
enjoyed the substantial returns achieved by large company issues. The broad
diversification of the Fund also protected shareholders from the shifts that
occurred in market leadership during this time.
Third quarter corporate earnings were better than analysts projected and
should improve in the months ahead. If inflation continues to be modest, large
company stocks should remain attractive.
Galaxy Fund II Large
Company Index Fund
Growth of $10,000 investment*
[MOUNTAIN CHART APPEARS HERE]
<TABLE>
<CAPTION>
Galaxy Fund II
Large Company S&P 500
Index Fund Composite Index
<S> <C> <C>
10/1/91 10,000 10,000
3/91 12,260 12,525
9/91 12,852 13,153
3/92 13,539 13,897
9/92 14,191 14,609
3/93 15,527 16,017
9/93 15,974 16,510
3/94 15,685 16,253
9/94 16,498 17,118
3/95 18,049 18,808
9/95 21,308 22,209
</TABLE>
*Since inception on 10/1/90. The S&P Index is an unmanaged index. Results for
the index do not reflect the expenses and investment management fees incurred
by the Fund.
Galaxy Fund II Large
Company Index Fund
Distribution of Total Net Assets
as of September 30, 1995
[PIE CHART APPEARS HERE]
Other Common and Preferred Stocks 11%
Cash Equivalents and Net Other Assets & Liabilities 3%
Technology 15%
Consumer Cyclicals 10%
Financial 13%
Consumer Staples 23%
Energy 8%
Utilities 10%
Capital Goods 7%
4
<PAGE>
- ---------------------
Portfolio Reviews
- ---------------------
Galaxy Fund II
Small Company Index Fund
By G. Jay Evans, CFA
Portfolio Manager
The Galaxy Fund II Small Company Index Fund seeks to match the price and yield
performance of smaller capitalization stocks as represented by the Russell
Special Small Company Index (the "Russell Index"), an unmanaged index of the
common stocks of 2000 companies with market values ranging from $25 million to
$275 million. The Small Company Index Fund does not own all of the issues in the
Russell Index, but uses a sampling approach to select securities. This technique
is designed to provide the Fund with the same sensitivity to economic
developments as the Russell Index.
Smaller capitalization companies outperformed larger capitalization
companies during the most recent quarter. This helped the Russell Index produce
a return that was highly competitive with actively managed portfolios over the
last six and 12 month periods.
For the six months ended September 30, 1995, the Russell Index produced a
total return of 20.12%. During the same period the Galaxy Fund II Small Company
Index Fund achieved a net total return of 20.20% (after the deduction of
operating expenses). Over the last 12 months, the Russell Index delivered a
total return of 26.59%. That compares to 26.10% for the Galaxy Fund II Small
Company Index Fund (after deduction of operating expenses) and represents a
correlation between the Fund and the Russell Index of 99.10%.
The correlation coefficient measures the degree to which the Fund's
performance moved in line with its target index during the period. A high
correlation coefficient means that the Fund generated results that closely
tracked the Russell Index. It speaks to the accuracy of the sampling technique
and the successful control of cash flows and trading costs.
The continued strength of small company issues depends primarily on the
confidence investors have in the economy. The low level of inflation today,
absence of other economic constraints and the better than expected corporate
earnings suggest that the current economic expansion could continue into the
late 1990s. Such a development would certainly broaden investor interest in
smaller capitalization issues.
Galaxy Fund II
Utility Index Fund
By G. Jay Evans, CFA
Portfolio Manager
The Galaxy Fund II Utility Index Fund seeks to match the price and yield
performance of the stocks in the utility industry by investing in publicly
traded stocks according to their representation in the Russell 1000 Utility
Index (the
Galaxy Fund II Small
Company Index Fund
Distribution of Total Net Assets
as of September 30, 1995
[PIE CHART APPEARS HERE]
Consumer Staples 17%
Technology 17%
Utilities 12%
Capital Goods 4%
Other Common Stocks 6%
Basic Materials 5%
Financial 21%
Energy 3%
Cash Equivalents and Net Other Assets & Liabilities 5%
Consumer Cyclicals 10%
Galaxy Fund II Small
Company Index Fund
Growth of $10,000 investment*
[MOUNTAIN CHART APPEARS HERE]
<TABLE>
<CAPTION>
Galaxy Fund II
Small Company Russell Special
Index Fund Small Company Index
<S> <C> <C>
10/1/91 10,000 10,000
3/91 13,184 13,868
9/91 14,192 15,085
3/92 15,826 16,814
9/92 15,846 16,913
3/93 18,231 19,699
9/93 19,497 21,292
3/94 18,894 20,688
9/94 19,380 21,335
3/95 20,331 22,527
9/95 24,439 27,059
</TABLE>
*Since inception on 10/1/90. The Russell Special Small Company Index is an
unmanaged index. Results for the index do not reflect the expenses and
investment management fees incurred by the Fund.
5
<PAGE>
- ---------------------
Portfolio Reviews
- ---------------------
"Utility Index"), an unmanaged index of the common stocks of 100 utility
companies. For the six months ended September 30, 1995, the Utility Index
produced a total return of 20.90%, while the Galaxy Fund II Utility Index Fund
delivered a net total return of 20.38% (after the deduction of operating
expenses). Over the last 12 months, the Utility Index reported a return of
25.59%, while the Galaxy Fund II Utility Index Fund had a net total return of
24.54%, (after the deduction of operating expenses). That represents a
correlation of 99.82%.
The correlation coefficient measures the degree to which the Fund's
performance moved in line with its target index during the period. A high
correlation coefficient means that the Fund generated results that closely
tracked the Utility Index. As always, trading and administrative costs were kept
to a minimum over the last six months, which enabled shareholders in the Galaxy
Fund II Utility Index Fund to enjoy the substantial returns that utility stocks
achieved.
The relative performance of utility stocks has historically been tied to
the outlook for short-term interest rates. As rates head downward, investors
become more attracted to the yields that utility stocks can offer. As changes in
the regulatory environment for utility companies raise concerns and open new
opportunities, well-managed utilities may now be able to deliver earnings growth
as well, through strategic consolidation and improved cost management.
G. Jay Evans has managed the Galaxy Fund II Large Company Index Fund, the Galaxy
Fund II Small Company Index Fund and the Galaxy Fund II Utility Index Fund since
July 1994. He has managed value-oriented portfolios for Fleet Investment
Advisors Inc. and its predecessors since 1981.
Galaxy Fund II U.S. Treasury
Index Fund
By David Lindsay
Portfolio Manager
The Galaxy Fund II U.S. Treasury Index Fund seeks to match the price and yield
performance of the U.S. Treasury component of the Salomon Brothers Broad
Galaxy Fund II Utility
Index Fund
Growth of $10,000 investment*
[MOUNTAIN CHART APPEARS HERE]
<TABLE>
<CAPTION>
Galaxy Fund II Russell 1000
Utility Index Fund Utility Index
<S> <C> <C>
1/5/93 10,000 10,000
3/93 10,985 10,865
9/93 12,013 11,935
3/94 10,454 10,342
9/94 10,576 10,505
3/95 13,111 13,373
9/95 14,221 14,440
</TABLE>
*Since inception on 1/5/93. The Russell 1000 Utility Index is an unmanaged
index. Results for the index do not reflect the expenses and investment
management fees incurred by the Fund.
Galaxy Fund II
Utility Index Fund
Distribution of Total Net Assets
as of September 30, 1995
[PIE CHART APPEARS HERE]
Consumer Cyclicals 1%
Technology 24%
Utilities 73%
Cash Equivalents and Net Other Assets & Liabilities 2%
Galaxy Fund II U.S. Treasury Index Fund
Distribution of Total Net Assets
as of September 30, 1995
[PIE CHART APPEARS HERE]
Cash Equivalents and Net Other Assets & Liabilities 3%
U.S. Treasury Notes 73%
U.S. Treasury Bonds 24%
6
<PAGE>
- ---------------------
Portfolio Reviews
- ---------------------
[PHOTO APPEARS HERE]
David Lindsay
Investment Grade Bond Index (the "U.S. Treasury Index"), an unmanaged index of
corporate and government bonds, by investing in U.S. Treasury notes and bonds
according to their representation in the U.S. Treasury Index. For the six months
ended September 30, 1995, the U.S. Treasury Index posted a total return of
7.97%. During the same period, the U.S. Treasury Index Fund had a net total
return of 7.97% (after deduction of operating expenses). Over the last 12 months
U.S. Treasury Index returned 13.44%, versus a 13.28% net total return for the
U.S. Treasury Index Fund (after deduction of operating expenses). That
represents a correlation of 99.73%. The correlation coefficient measures the
degree to which the Fund's performance moved in line with its target index
during the period. A high correlation coefficient means the Fund generated
results that tracked the index closely and shows that the sampling of securities
owned by the Fund represented a valid cross-section of securities included in
the U.S. Treasury Index.
As bonds rallied in recent months, Treasury bonds outpaced most other
sectors. The gains were particularly strong for intermediate- and longer-term
issues, which constitute two thirds of the U.S Treasury Index. Although interest
rates declined, the current yield for the U.S. Treasury Index remained
relatively steady. As issues maturing in less than one year fell out of the
Index, they were often replaced with longer-term securities bearing higher
coupons. This kept the current yield for the U.S. Treasury Index near 7%.
Since the Treasury market already built into its prices the expectation
that short-term rates will ease in the months ahead, it would take a substantial
cut to push prices much higher. For this reason, we expect the prices and yields
of Treasury bonds to be more stable than they've been for some time.
David Lindsay has managed the Galaxy Fund II U.S. Treasury Index Fund since
July 1994. He has managed fixed-income portfolios for Fleet Investment
Advisors Inc. since 1986.
Galaxy Fund II
Municipal Bond Fund
By Mary McGoldrick
Portfolio Manager
The Galaxy Fund II Municipal Bond Fund seeks to provide the highest level of
income exempt from Federal tax that is consistent with preservation of capital.
Typically, the Fund invests substantially all of its assets in debt securities
issued by state, local and regional government agencies, and maintains an
average maturity for its investments between 7 and 12 years.
Low interest rates and moderate inflation drove municipal bond prices
substantially higher in the six months ended September 30. With solid perfor-
Galaxy Fund II
U.S. Treasury Index Fund
Growth of $10,000 investment*
[MOUNTAIN CHART APPEARS HERE]
<TABLE>
<CAPTION>
Galaxy Fund II
U.S. Treasury Salomon Brothers
Index Fund U.S. Treasury Index
<S> <C> <C>
6/4/91 10,000 10,000
9/91 10,553 10,573
3/92 10,899 10,941
9/92 11,867 11,945
3/93 12,390 12,486
9/93 13,146 13,276
3/94 12,687 12,821
9/94 12,554 12,733
3/95 10,942 10,342
9/95 14,221 14,440
</TABLE>
*Since inception on 6/4/91. The Salomon Brothers U.S. Treasury Index is an
unmanaged index. Results for the index do not reflect the expenses and
investment management fees incurred by the Fund.
7
<PAGE>
- ---------------------
Portfolio Reviews
- ---------------------
[PHOTO APPEARS HERE]
Mary McGoldrick
mances by issues with longer maturities and good liquidity, the Municipal Bond
Fund had a net total return of 5.20% (after deduction of operating expenses),
versus 5.79% for its benchmark, the Lehman Seven Year Municipal Bond Index, an
unmanaged index of municipal issues maturing in seven years.
As falling interest rates pushed bond prices higher, municipal bond prices
lagged those of Treasury bonds. Municipal investors had grown worried by talk of
tax reform that would reduce or eliminate taxes on investment income and hurt
the special tax advantages municipal bonds now enjoy. As demand for municipals
shrank, lower interest rates increased supplies of new issues. With these drags
on prices, the yields on 10-year municipal bonds fell just 40 points during the
period, compared to a drop of 100 points for the yields of 10-year Treasuries.
In the summer of 1994, after Fleet Investment Advisors assumed
responsibility for the Fund, we added longer-term issues with strong credit
quality and liquidity. These issues performed exceptionally well as interest
rates have declined in 1995, positively affecting the value of Fund shares. To
further enhance credit quality and liquidity, we continued to emphasize general
obligation bonds backed by the full faith and credit of their issuers, as well
as revenue bonds for essential services like water, sewer and utilities.
If interest rates fall further, the Fund should receive additional benefit
from its longer-term holdings. Because the average maturity of the Fund's
investments is a relatively neutral 8.75 years, we could easily shorten the
portfolio if rates start to rise. Although tax reform may remain a worry for
investors, the debate should stay relatively quiet until the 1996 presidential
election is in full swing. In the meantime, we'll continue to monitor the
influence of proposed legislation on the prices of municipal bonds.
Mary McGoldrick has managed the Galaxy Fund II Municipal Bond Fund since
July 1994. She has managed portfolios at Fleet Investment Advisors Inc. and
other banks for nine years.
Galaxy Fund II
Municipal Bond Fund
Growth of $10,000 investment*
[MOUNTAIN CHART APPEARS HERE]
<TABLE>
<CAPTION>
Lehman Bros.
Galaxy Fund II Seven Year Municipal
Municipal Bond Fund Bond Index
<S> <C> <C>
4/15/93 10,000 10,000
9/93 10,683 10,575
3/94 10,310 10,298
9/94 10,398 10,507
3/95 10,860 10,398
9/95 11,421 11,000
</TABLE>
*Since inception on 4/15/93. The Lehman Brothers Seven Year Municipal Bond Index
are unmanaged indices. Results for the indices do not reflect the expenses and
investment management fees incurred by the Fund.
Galaxy Fund II
Municipal Bond Fund
Distribution of Total Net Assets
as of September 30, 1995
[PIE CHART APPEARS HERE]
Net Other Assets & Liabilities 3%
South 34%
East 29%
Pacific 7%
Mountain 11%
North Central 16%
8
<PAGE>
-----------
Galaxy Large Company Index Fund
Fund II PORTFOLIO OF INVESTMENTS
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
COMMON STOCKS - 98.02%
CONSUMER STAPLES - 23.14%
34,500 Abbott Laboratories................................................ $ 1,470,563
1,479 Alberto-Culver Co., Class B........................................ 45,110
2,887 Allergan, Inc...................................................... 96,354
2,991 ALZA Corp., Class A*............................................... 68,793
8,734 American Brands, Inc............................................... 369,012
13,985 American Home Products Corp........................................ 1,186,977
11,248 Amgen, Inc.*....................................................... 560,994
12,028 Anheuser-Busch Cos., Inc........................................... 750,247
24,067 Archer-Daniels-Midland Co.......................................... 370,030
3,031 Avon Products, Inc................................................. 217,474
2,000 Bard, C.R., Inc.................................................... 61,000
1,904 Bassett Furniture Industries, Inc.................................. 47,838
2,422 Bausch and Lomb, Inc............................................... 100,210
11,794 Baxter International, Inc.......................................... 485,028
2,971 Becton Dickinson & Co.............................................. 186,802
3,698 Beverly Enterprises, Inc.*......................................... 50,848
4,927 Biomet, Inc.*...................................................... 84,991
23,674 Bristol-Myers Squibb Corp.......................................... 1,725,243
2,311 Brown-Forman Corp., Class B........................................ 89,840
11,270 Campbell Soup Co................................................... 566,318
2,803 Clorox Co.......................................................... 200,064
56,352 Coca-Cola Co. (C).................................................. 3,888,240
7,018 Colgate Palmolive Co............................................... 467,574
19,328 Columbia/HCA Healthcare Corp....................................... 939,824
3,573 Community Psychiatric Centers...................................... 41,983
10,572 ConAgra, Inc....................................................... 418,916
2,239 Coors, Adolph Co., Class B......................................... 40,582
7,165 CPC International, Inc............................................. 472,890
7,018 Darden Restaurants, Inc.*.......................................... 80,707
1,325 Fleming Cos., Inc.................................................. 31,800
3,403 Fruit of The Loom, Inc., Class A*.................................. 70,187
7,214 General Mills, Inc................................................. 402,181
19,354 Gillette Co........................................................ 921,734
10,863 Heinz, (H. J.), Co................................................. 496,982
3,786 Hershey Foods Corp................................................. 243,724
3,432 International Flavors and Fragrances, Inc.......................... 165,594
28,301 Johnson and Johnson................................................ 2,097,812
9,585 Kellogg Co......................................................... 693,714
8,006 Kimberly-Clark Corp................................................ 537,403
12,864 Lilly Eli and Co................................................... 1,156,152
16,265 Limited, Inc....................................................... 309,035
4,013 Liz Claiborne, Inc................................................. 101,328
3,599 Luby's Cafeterias, Inc............................................. 77,379
3,624 Manor Care, Inc.................................................... 123,216
31,505 McDonald's Corp.................................................... 1,205,066
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
CONSUMER STAPLES (CONTINUED)
9,892 Medtronic, Inc..................................................... $ 531,695
54,905 Merck and Co., Inc................................................. 3,074,680
3,579 Nike, Inc., Class B................................................ 397,716
33,500 PepsiCo, Inc....................................................... 1,708,500
27,650 Pfizer, Inc........................................................ 1,475,819
37,417 Philip Morris Cos., Inc............................................ 3,124,320
3,715 Pioneer Hi-Bred International, Inc................................. 170,890
3,033 Premark International, Inc......................................... 154,304
30,429 Procter and Gamble Co.............................................. 2,343,033
6,351 Quaker Oats Co..................................................... 210,377
4,413 Ralston Purina Group............................................... 255,402
4,086 Reebok International, Ltd.......................................... 140,456
3,618 Rite Aid Corp...................................................... 101,304
6,476 Rubbermaid, Inc.................................................... 178,900
1,653 Russell Corp....................................................... 42,152
401 Ryan's Family Steak Houses, Inc.*.................................. 3,158
20,274 Sara Lee Corp...................................................... 603,152
17,405 Schering-Plough Corp............................................... 896,358
5,366 Scott Paper Co..................................................... 260,251
15,925 Seagram Co., Ltd................................................... 571,309
16,866 Sears Roebuck and Co............................................... 621,934
485 Shared Medical Systems Corp........................................ 20,128
2,849 Shoney's, Inc.*.................................................... 31,339
470 Springs Industries, Inc., Class A.................................. 18,448
1,976 St. Jude Medical, Inc.............................................. 124,982
2,978 Super Valu, Inc.................................................... 87,479
7,894 Sysco Corp......................................................... 215,112
7,759 Tenet Healthcare Corp.*............................................ 134,813
7,009 Unilever N V - ADR................................................. 911,170
8,736 United Healthcare Corp............................................. 426,972
7,369 Upjohn Co.......................................................... 328,842
9,988 UST, Inc........................................................... 285,907
2,678 U.S. Surgical Corp................................................. 71,637
2,525 V.F. Corp.......................................................... 128,775
6,207 Warner-Lambert Co.................................................. 591,217
4,670 Wendy's International, Inc......................................... 98,654
3,294 Winn-Dixie Stores, Inc............................................. 196,405
4,746 Wrigley, William, Jr. Co........................................... 239,673
------------
44,495,022
------------
TECHNOLOGY - 15.39%
4,438 Advanced Micro Devices, Inc........................................ 129,257
20,947 AirTouch Communications, Inc.*..................................... 641,502
5,128 Amdahl Corp.*...................................................... 49,357
68,185 American Telephone and Telegraph Corp. (C)......................... 4,483,164
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
-----------
Galaxy Large Company Index Fund
Fund II PORTFOLIO OF INVESTMENTS (continued)
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
TECHNOLOGY (CONTINUED)
10,818 AMP, Inc........................................................... $ 416,493
5,353 Apple Computer, Inc................................................ 199,399
3,711 Applied Materials, Inc.*........................................... 379,450
2,384 Autodesk, Inc...................................................... 104,300
6,053 Automatic Data Processing, Inc..................................... 412,361
6,502 Boston Scientific Corp.*........................................... 277,148
3,095 Cabletron Systems, Inc.*........................................... 203,883
1,666 Ceridian Corp.*.................................................... 73,929
12,155 Cisco Systems, Inc.*............................................... 838,695
11,226 Compaq Computer Corp.*............................................. 543,058
11,108 Computer Associates International, Inc.*........................... 469,313
1,790 Computer Sciences Corp.*........................................... 115,231
8,368 Corning, Inc....................................................... 239,534
1,001 Cray Research, Inc.*............................................... 22,147
2,721 Data General Corp.*................................................ 28,230
5,997 Digital Equipment Corp.*........................................... 273,613
12,131 Dow Chemical Co.................................................... 903,760
5,245 DSC Communications Corp.*.......................................... 310,766
4,112 EG & G, Inc........................................................ 80,184
1,859 General Signal Corp................................................ 54,376
1,450 Harris Corp........................................................ 79,569
21,961 Hewlett-Packard Co................................................. 1,830,998
5,746 Honeywell, Inc..................................................... 246,360
36,516 Intel Corp......................................................... 2,195,525
484 Intergraph Corp.*.................................................. 5,869
25,281 International Business Machines Corp. (B).......................... 2,385,894
3,639 Loral Corp......................................................... 207,423
28,960 MCI Communications Corp............................................ 754,770
8,863 Micron Technology, Inc............................................. 704,609
25,266 Microsoft Corp.*................................................... 2,286,573
25,571 Motorola, Inc...................................................... 1,952,985
5,022 National Semiconductor Corp.*...................................... 138,733
10,837 Northern Telecom, Ltd.............................................. 386,068
15,890 Novell, Inc.*...................................................... 289,993
20,079 Oracle Systems Corp.*.............................................. 770,532
1,739 Perkin-Elmer Corp.................................................. 61,952
6,486 Pitney-Bowes, Inc.................................................. 272,412
4,268 Scientific-Atlanta, Inc............................................ 72,023
6,816 Silicon Graphics, Inc.*............................................ 234,300
14,689 Sprint Corp........................................................ 514,115
4,226 Sun Microsystems, Inc.*............................................ 266,238
4,116 Tandem Computers, Inc.*............................................ 50,421
1,315 Tektronix, Inc..................................................... 77,585
27,928 Tele-Communications, Inc., Class A*................................ 488,740
3,510 Teledyne, Inc...................................................... 95,209
4,017 Tellabs, Inc.*..................................................... 169,216
8,246 Texas Instruments, Inc............................................. 658,649
869 Thomas and Betts Corp.............................................. 56,159
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
TECHNOLOGY (CONTINUED)
2,006 Tyco International, Ltd............................................ $ 126,378
8,521 Unisys Corp.*...................................................... 67,103
1,986 Western Atlas, Inc.*............................................... 94,087
14,795 Westinghouse Electric Corp......................................... 221,925
4,169 Xerox Corp......................................................... 560,209
829 Zenith Electronics Corp.*.......................................... 7,150
------------
29,578,922
------------
FINANCIAL - 13.07%
4,826 Aetna Life and Casualty Co......................................... 354,108
5,297 Ahmanson, H.F. and Co.............................................. 134,411
2,359 Alexander and Alexander Services, Inc.............................. 57,206
19,578 Allstate Corp...................................................... 692,572
20,507 American Express Co................................................ 909,998
9,860 American General Corp.............................................. 368,518
20,258 American International Group, Inc.................................. 1,721,930
16,192 Banc One Corp...................................................... 591,008
4,430 Bank of Boston Corp................................................ 210,979
8,365 Bank of New York Co., Inc.......................................... 388,973
15,679 BankAmerica Corp................................................... 938,780
3,506 Bankers Trust New York Corp........................................ 246,297
4,184 Barnett Banks, Inc................................................. 236,919
2,581 Beneficial Corp.................................................... 134,857
4,399 Block, H & R, Inc.................................................. 167,162
4,622 Boatmen's Bancshares, Inc.......................................... 171,014
7,254 Chase Manhattan Corp............................................... 443,401
11,286 Chemical Banking Corp.............................................. 687,035
3,720 Chubb Corp......................................................... 357,120
3,085 Cigna Corp......................................................... 321,226
16,348 Citicorp........................................................... 1,156,621
5,299 CoreStates Financial Corp.......................................... 194,076
7,203 Dean Witter, Discover and Co....................................... 405,169
8,046 Federal Home Loan Mortgage Corp.................................... 556,180
11,353 Federal National Mortgage Association.............................. 1,175,036
3,683 First Chicago Corp................................................. 252,746
5,162 First Data Corp.................................................... 320,044
3,351 First Fidelity Bancorp............................................. 226,193
3,657 First Interstate Bancorp........................................... 368,443
7,494 First Union Corp................................................... 382,194
5,758 Fleet Financial Group, Inc. (B).................................... 217,365
3,525 General Re Corp.................................................... 532,275
2,932 Golden West Financial Corp......................................... 148,066
5,800 Great Western Financial Corp....................................... 137,750
4,303 Household International., Inc...................................... 266,786
4,736 ITT Corp........................................................... 587,264
2,096 Jefferson-Pilot Corp............................................... 134,668
</TABLE>
See Notes to Financial Statements.
10
<PAGE>
-----------
Galaxy Large Company Index Fund
Fund II PORTFOLIO OF INVESTMENTS (continued)
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
FINANCIAL (CONTINUED)
10,425 KeyCorp............................................................ $ 357,056
4,533 Lincoln National Corp.............................................. 213,618
2,380 Loews Corp......................................................... 346,290
2,977 Marsh & McLennan Cos., Inc......................................... 261,604
6,502 MBNA Corp.......................................................... 270,646
4,359 Mellon Bank Corp................................................... 194,520
8,642 Merrill Lynch and Co., Inc......................................... 540,125
3,000 Morgan Stanley Group, Inc.......................................... 288,375
8,707 Morgan, J.P. and Co., Inc.......................................... 673,704
7,000 National City Corp................................................. 216,125
12,839 NationsBank Corp................................................... 863,423
6,536 NBD Bancorp, Inc................................................... 250,002
15,240 Norwest Corp....................................................... 499,110
9,570 PNC Bank Corp...................................................... 266,764
4,555 Providian Corp..................................................... 189,033
1,194 Pulte Corp......................................................... 33,880
2,270 Republic New York Corp............................................. 132,795
2,639 Safeco Corp........................................................ 173,184
4,929 Salomon, Inc....................................................... 188,534
4,454 Shawmut National Corp.............................................. 149,766
3,120 St. Paul Cos., Inc................................................. 182,130
5,060 SunTrust Banks, Inc................................................ 334,593
2,886 Torchmark Corp..................................................... 121,573
3,881 Transamerica Corp.................................................. 276,521
14,478 Travelers, Inc..................................................... 769,144
3,300 UNUM Corp.......................................................... 174,075
3,403 USF&G Corp......................................................... 65,933
1,097 USLIFE Corp........................................................ 32,073
3,743 U.S. Bancorp....................................................... 105,740
7,437 Wachovia Corp...................................................... 320,721
2,392 Wells Fargo and Co................................................. 444,015
------------
25,129,462
------------
UTILITIES - 10.07%
5,851 Alltel Corp........................................................ 174,799
8,104 American Electric Power Co., Inc................................... 294,783
23,736 Ameritech Corp..................................................... 1,237,239
6,503 Baltimore Gas & Electric Co........................................ 168,265
19,959 Bell Atlantic Corp................................................. 1,224,984
22,452 BellSouth Corp..................................................... 1,641,803
8,405 Carolina Power & Light Co.......................................... 282,618
7,720 Central and South West Corp........................................ 196,860
2,688 Cinergy Corp....................................................... 74,928
4,385 Coastal Corp....................................................... 147,446
1,884 Columbia Gas System, Inc.*......................................... 72,770
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
UTILITIES (CONTINUED)
9,475 Consolidated Edison Co. of N.Y., Inc............................... $ 287,803
4,237 Consolidated Natural Gas Co........................................ 171,069
6,555 Detroit Edison Co.................................................. 211,399
6,955 Dominion Resources, Inc............................................ 261,682
9,126 Duke Power Co...................................................... 395,840
11,639 Enron Corp......................................................... 389,907
2,149 ENSERCH Corp....................................................... 35,459
9,502 Entergy Corp....................................................... 248,240
8,583 FPL Group, Inc..................................................... 350,830
5,158 General Public Utilities Corp...................................... 160,543
42,825 GTE Corp........................................................... 1,680,881
6,287 Houston Industries, Inc............................................ 277,414
5,329 Niagara Mohawk Power Corp.......................................... 69,943
2,412 NICOR, Inc......................................................... 65,727
5,980 Noram Energy Corp.................................................. 47,093
2,644 Northern States Power Co........................................... 119,972
19,143 NYNEX Corp......................................................... 914,078
6,680 Ohio Edison Co..................................................... 151,970
3,301 Oneok, Inc......................................................... 76,748
3,181 Pacific Enterprises................................................ 79,923
18,213 Pacific Gas & Electric Co.......................................... 544,113
18,357 Pacific Telesis Group.............................................. 564,478
13,491 PacifiCorp......................................................... 256,329
4,720 Panhandle Eastern Corp............................................. 128,620
9,521 PECO Energy Co..................................................... 272,539
1,428 People's Energy Corp............................................... 39,270
9,649 Public Service Enterprise Group, Inc............................... 287,058
6,610 Santa Fe Energy Resources, Inc.*................................... 62,795
27,488 SBC Communications, Inc............................................ 1,511,840
19,675 SCE Corp........................................................... 349,231
5,827 Sonat, Inc......................................................... 186,464
27,551 Southern Co........................................................ 650,892
7,254 Tenneco, Inc....................................................... 335,498
9,781 Texas Utilities Co................................................. 341,112
9,809 Unicom Corp........................................................ 296,722
3,940 Union Electric Co.................................................. 147,258
19,694 US West, Inc....................................................... 928,080
15,305 Viacom, Inc., Class B*............................................. 761,424
4,739 Williams Cos., Inc................................................. 184,821
------------
19,361,560
------------
CONSUMER CYCLICAL - 9.92%
11,800 Albertson's, Inc................................................... 402,675
3,445 American Greetings Corp., Class A.................................. 105,073
2,141 Armstrong World Industries, Inc.................................... 118,826
</TABLE>
See Notes to Financial Statements.
11
<PAGE>
-----------
Galaxy Large Company Index Fund
Fund II PORTFOLIO OF INVESTMENTS (continued)
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
CONSUMER CYCLICAL (CONTINUED)
1,536 Bally Entertainment Corp.*......................................... $ 16,704
3,169 Black and Decker Corp.............................................. 108,142
1,610 Briggs and Stratton Corp........................................... 64,803
467 Brown Group, Inc................................................... 8,581
4,644 Brunswick Corp..................................................... 94,041
7,230 Capital Cities/ABC, Inc............................................ 850,429
3,094 CBS, Inc........................................................... 247,133
913 Centex Corp........................................................ 26,477
684 Charming Shoppes, Inc.............................................. 3,078
4,154 Circuit City Stores, Inc........................................... 131,370
9,927 Comcast Corp., Class A............................................. 198,540
3,513 Cooper Tire and Rubber Co.......................................... 85,190
219 Crane Co........................................................... 7,556
7,580 CUC International, Inc.*........................................... 264,353
4,138 Dana Corp.......................................................... 119,485
3,071 Dayton-Hudson Corp................................................. 233,012
3,319 Deluxe Corp........................................................ 109,942
3,519 Dial Corp.......................................................... 87,095
5,309 Dillard Department Stores, Inc., Class A........................... 169,224
23,006 Disney, Walt, Co................................................... 1,319,969
6,387 Donnelley, R.R. and Sons Co........................................ 249,093
3,877 Dow Jones and Co., Inc............................................. 142,964
7,876 Dun and Bradstreet Corp............................................ 455,824
15,057 Eastman Kodak Co................................................... 892,127
3,982 Eaton Corp......................................................... 211,046
2,218 Echlin, Inc........................................................ 79,294
6,776 Gannett Co., Inc................................................... 370,139
6,442 Gap, Inc........................................................... 231,912
5,299 Genuine Parts Co................................................... 212,622
327 Giant Food, Inc., Class A.......................................... 10,260
798 Goodrich, B.F., Co................................................. 52,568
7,093 Goodyear Tire and Rubber Co........................................ 279,287
345 Great Atlantic and Pacific Tea, Inc................................ 9,660
824 Handleman Co....................................................... 7,313
1,568 Harcourt General, Inc.............................................. 65,660
2,334 Harland, John H., Co............................................... 51,640
4,436 Harrah's Entertainment, Inc.*...................................... 129,753
1,180 Hasbro, Inc........................................................ 36,728
2,083 Hilton Hotels Corp................................................. 133,052
20,085 Home Depot, Inc.................................................... 800,889
4,406 Interpublic Group of Cos., Inc..................................... 175,139
1,958 Jostens, Inc....................................................... 46,013
1,909 Kaufman and Broad Home Corp........................................ 24,101
1,742 King World Productions, Inc.*...................................... 63,801
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
CONSUMER CYCLICAL (CONTINUED)
17,904 Kmart Corp......................................................... $ 259,608
2,589 Knight-Ridder, Inc................................................. 151,780
4,359 Kroger Co.*........................................................ 148,751
778 Longs Drug Stores, Inc............................................. 32,287
7,976 Lowe's Cos., Inc................................................... 239,280
4,294 Marriott International, Inc........................................ 160,488
6,593 Masco Corp......................................................... 181,308
9,904 Mattel, Inc........................................................ 290,930
11,937 May Department Stores Co........................................... 522,244
4,706 Maytag Corp........................................................ 82,355
2,187 McGraw-Hill, Inc................................................... 178,787
4,393 Melville Corp...................................................... 151,559
1,440 Mercantile Stores Co., Inc......................................... 64,800
2,828 Meredith Corp...................................................... 112,413
3,967 Moore Corp., Ltd................................................... 79,836
2,986 National Service Industries, Inc................................... 87,341
3,222 New York Times Co., Class A........................................ 88,202
6,304 Newell Co.......................................................... 156,024
3,611 Nordstrom, Inc..................................................... 150,759
1,074 Outboard Marine Corp............................................... 23,091
1,868 Owens-Corning Fiberglas Corp.*..................................... 83,360
10,988 Penney, J.C., Co., Inc............................................. 545,280
2,720 Pep Boys - Manny, Moe and Jack..................................... 73,780
2,089 Polaroid Corp...................................................... 83,038
8,812 Price/Costco, Inc.*................................................ 150,906
2,250 Safety-Kleen Corp.................................................. 32,906
3,054 Service Corp., International....................................... 119,488
3,326 Sherwin-Williams Co................................................ 116,410
2,155 Snap-On, Inc....................................................... 81,890
1,963 Stanley Works...................................................... 85,145
1,796 Stride Rite Corp................................................... 20,430
3,091 Tandy Corp......................................................... 187,778
2 Tele-Comm Liberty Media Group, Class A............................. 54
16,802 Time Warner, Inc................................................... 667,880
4,660 Times Mirror Co., Class A.......................................... 133,975
4,368 TJX Cos., Inc...................................................... 51,870
13,190 Toys `R' Us, Inc.*................................................. 356,130
2,949 Tribune Co......................................................... 195,740
7,116 U.S. Healthcare, Inc............................................... 251,729
10,136 Walgreen Co........................................................ 283,808
101,495 Wal-Mart Stores, Inc............................................... 2,524,688
3,171 Whirlpool Corp..................................................... 183,125
4,592 Whitman Corp....................................................... 94,710
5,798 Woolworth Corp..................................................... 91,319
------------
19,079,865
------------
</TABLE>
See Notes to Financial Statements.
12
<PAGE>
-----------
Galaxy Large Company Index Fund
Fund II PORTFOLIO OF INVESTMENTS (continued)
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
ENERGY - 8.49%
4,024 Amerada Hess Corp.................................................. $ 195,667
22,318 Amoco Corp......................................................... 1,431,142
2,626 Ashland, Inc....................................................... 87,643
6,713 Atlantic Richfield Co.............................................. 720,808
4,123 Baker Hughes, Inc.................................................. 84,006
6,572 Burlington Resources, Inc.......................................... 254,665
27,706 Chevron Corp....................................................... 1,347,204
5,785 Dresser Industries, Inc............................................ 138,117
585 Eastern Enterprises................................................ 18,793
55,211 Exxon Corp. (C).................................................... 3,988,995
4,114 Halliburton Co..................................................... 171,760
792 Helmerich and Payne, Inc........................................... 22,275
2,093 Kerr-McGee Corp.................................................... 116,162
1,514 Louisiana Land and Exploration Co.................................. 53,936
2,181 McDermott Int'l, Inc............................................... 43,075
17,517 Mobil Corp......................................................... 1,745,131
17,453 Occidental Petroleum Corp.......................................... 383,966
3,694 Oryx Energy Co.*................................................... 48,022
2,062 Pennzoil Co........................................................ 90,470
11,059 Phillips Petroleum Co.............................................. 359,418
688 Rowan Cos., Inc.*.................................................. 5,160
23,733 Royal Dutch Petroleum Co., ADR..................................... 2,913,226
10,711 Schlumberger, Ltd.................................................. 698,893
4,461 Sun Co., Inc....................................................... 114,871
11,579 Texaco, Inc........................................................ 748,293
10,703 Unocal Corp........................................................ 305,036
11,719 USX-Marathon Group, Inc............................................ 231,450
------------
16,318,184
------------
CAPITAL GOODS - 6.92%
2,174 Alco Standard Corp................................................. 184,247
5,837 American Stores Co................................................. 165,625
1,960 Andrew Corp.*...................................................... 119,805
14,510 Boeing Co.......................................................... 990,308
7,059 Browning-Ferris Industries, Inc.................................... 214,417
8,870 Caterpillar, Inc................................................... 504,481
714 Cincinnati Milacron, Inc........................................... 22,491
4,413 Cooper Industries, Inc............................................. 155,558
2,505 Cummins Engine Co., Inc............................................ 96,443
3,803 Deere and Co....................................................... 309,469
3,454 Dover Corp......................................................... 132,116
10,563 Emerson Electric Co................................................ 755,255
3,371 Fleetwood Enterprises, Inc......................................... 66,999
3,811 Fluor Corp......................................................... 213,416
1,534 FMC Corp.*......................................................... 116,584
1,535 Foster Wheeler Corp................................................ 54,301
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
CAPITAL GOODS (CONTINUED)
2,489 General Dynamics Corp.............................................. $ 136,584
74,945 General Electric Co. (C)........................................... 4,777,744
3,247 Giddings and Lewis, Inc............................................ 56,620
2,303 Grainger, W.W., Inc................................................ 139,044
842 Harnischfeger Industries, Inc...................................... 28,102
5,120 Illinois Tool Works, Inc........................................... 301,440
4,097 Ingersoll-Rand Co.................................................. 153,638
1,652 Johnson Controls, Inc.............................................. 104,489
5,031 McDonnell Douglas Corp............................................. 416,315
901 Morrison Knudsen Corp.............................................. 6,983
129 Nacco Industries, Inc., Class A.................................... 7,659
4,197 Navistar International*............................................ 50,364
1,982 Northrop Grumman Corp.............................................. 120,654
2,270 Ogden Corp......................................................... 53,345
1,974 PACCAR, Inc........................................................ 92,285
3,829 Parker-Hannifin Corp............................................... 145,502
5,784 Raytheon Co........................................................ 491,640
9,280 Rockwell International Corp........................................ 438,480
3,828 Textron, Inc....................................................... 261,261
1,015 Timken Co.......................................................... 43,264
2,937 TRW, Inc........................................................... 218,439
5,463 United Technologies Corp........................................... 482,793
1,337 Varity Corp.*...................................................... 59,497
21,431 WMX Technologies, Inc.............................................. 610,784
347 Zurn Industries, Inc............................................... 8,805
------------
13,307,246
------------
BASIC MATERIALS - 6.12%
4,928 Air Products and Chemicals, Inc.................................... 256,872
11,749 Alcan Aluminum, Ltd................................................ 380,374
12,462 Allied Signal, Inc................................................. 549,886
7,965 Aluminum Co. of America............................................ 421,149
4,961 Armco, Inc.*....................................................... 32,247
2,758 ASARCO, Inc........................................................ 86,877
2,581 Avery Dennison Corp................................................ 108,402
994 Ball Corp.......................................................... 29,447
13,384 Barrick Gold Corp.................................................. 346,311
2,192 Bemis Co........................................................... 60,554
4,237 Bethlehem Steel Corp.*............................................. 59,848
2,057 Boise Cascade Corp................................................. 83,051
5,154 Champion International Corp........................................ 277,672
3,734 Crown Cork and Seal Co., Inc.*..................................... 144,693
211 Crown Vantage, Inc................................................. 4,695
3,882 Cyprus Amax Minerals Co............................................ 109,181
23,900 Du Pont, E.I., De Nemours and Co................................... 1,643,125
3,335 Eastman Chemical Co................................................ 213,440
</TABLE>
See Notes to Financial Statements.
13
<PAGE>
-----------
Galaxy Large Company Index Fund
Fund II PORTFOLIO OF INVESTMENTS (continued)
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
BASIC MATERIALS (CONTINUED)
6,298 Engelhard Corp..................................................... $ 159,812
2,057 Federal Paper Board, Inc........................................... 78,937
476 First Mississippi Corp............................................. 18,981
3,834 Georgia-Pacific Corp............................................... 335,475
3,935 Grace, W.R. and Co................................................. 262,661
3,291 Great Lakes Chemical Corp.......................................... 222,554
5,901 Hercules, Inc...................................................... 342,258
6,114 Inco, Ltd.......................................................... 209,405
2,538 Inland Steel Industries, Inc....................................... 57,740
10,678 International Paper Co............................................. 448,476
2,113 James River Corp. of Virginia...................................... 67,616
4,934 Louisiana-Pacific Corp............................................. 119,033
2,968 Mallinckrodt Group, Inc............................................ 117,607
2,229 Mead Corp.......................................................... 130,675
2,597 Millipore Corp..................................................... 97,388
5,169 Monsanto Co........................................................ 520,777
6,552 Morton International, Inc.......................................... 203,112
462 Nalco Chemical Co.................................................. 15,766
3,769 Newmont Mining Corp................................................ 160,183
4,128 Nucor Corp......................................................... 184,728
5,374 Pall Corp.......................................................... 124,946
2,763 Phelps Dodge Corp.................................................. 173,033
10,798 Placer Dome, Inc................................................... 283,448
210 Potlatch Corp...................................................... 8,584
9,511 PPG Industries, Inc................................................ 442,262
6,040 Praxair, Inc....................................................... 161,570
1,747 Raychem Corp....................................................... 78,615
3,529 Reynolds Metals Co................................................. 203,800
2,955 Rohm and Haas Co................................................... 178,408
2,068 Sigma-Aldrich Corp................................................. 100,298
4,614 Stone Container Corp............................................... 87,666
2,411 Temple-Inland, Inc................................................. 128,386
514 Trinova Corp....................................................... 17,348
2,864 Union Camp Corp.................................................... 165,038
4,838 Union Carbide Corp................................................. 192,311
2,875 USX-U.S. Steel Group, Inc.......................................... 89,125
2,752 Westvaco Corp...................................................... 125,560
8,682 Weyerhaeuser Co.................................................... 396,116
2,500 Willamette Industries, Inc......................................... 166,875
4,317 Worthington Industries, Inc........................................ 79,325
------------
11,763,722
------------
TRANSPORTATION - 4.12%
3,756 AMR Corp.*......................................................... 270,902
6,560 Burlington Northern, Inc........................................... 475,624
17,120 Chrysler Corp...................................................... 907,360
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
TRANSPORTATION (CONTINUED)
3,508 Conrail, Inc....................................................... $ 241,175
844 Consolidated Freightways, Inc...................................... 20,889
4,583 CSX Corp........................................................... 385,545
2,185 Delta Air Lines, Inc............................................... 151,311
2,401 Ecolab, Inc........................................................ 66,328
2,505 Federal Express Corp.*............................................. 207,915
46,021 Ford Motor Co...................................................... 1,432,404
32,885 General Motors Corp................................................ 1,541,484
11,276 Laidlaw, Inc., Class B............................................. 98,665
9,600 Lockheed Martin Corp............................................... 644,400
6,475 Norfolk Southern Corp.............................................. 484,006
947 Pittston Services Group............................................ 25,687
1,949 Roadway Services, Inc.............................................. 96,963
3,089 Ryder System, Inc.................................................. 78,383
5,596 Southwest Airlines Co.............................................. 141,299
9,167 Union Pacific Corp................................................. 607,314
3,295 USAir Group, Inc.*................................................. 37,893
207 Yellow Corp........................................................ 2,846
------------
7,918,393
------------
METALS AND MINING - 0.78%
5,596 Echo Bay Mines, Ltd................................................ 60,857
8,984 Freeport-McMoran Copper, Class B*.................................. 230,215
6,530 Homestake Mining Co................................................ 111,010
18,354 Minnesota Mining and Manufacturing Co.............................. 1,037,001
4,632 Santa Fe Pacific Gold Corp......................................... 58,479
------------
1,497,562
------------
TOTAL COMMON STOCKS................................................ 188,449,938
(Cost $137,044,704) ------------
PREFERRED STOCK - 0.00%
62 Teledyne, Inc., Class E............................................ 860
------------
TOTAL PREFERRED STOCK.............................................. 860
(Cost $930) ------------
</TABLE>
See Notes to Financial Statements.
14
<PAGE>
-----------
Galaxy Large Company Index Fund
Fund II PORTFOLIO OF INVESTMENTS (continued)
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
PAR VALUE (NOTE 2)
--------- --------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATION - 0.21%
U.S. TREASURY BILL - 0.21% (A)
$ 400,000 5.51%, 12/14/95 (C)................................................ $ 395,474
------------
TOTAL U.S. GOVERNMENT OBLIGATION................................... 395,474
(Cost $395,474) ------------
REPURCHASE AGREEMENT - 1.50%
2,893,069 Chase Securities, Inc.
6.00%, 10/02/95, Dated 9/29/95
Repurchase Price $2,894,516
(Collateralized by U.S. Treasury Note
9.13%, Due 1999, Total Par $2,600,000,
Market Value $2,951,000)........................................... 2,893,069
------------
TOTAL REPURCHASE AGREEMENT......................................... 2,893,069
(Cost $2,893,069) ------------
TOTAL INVESTMENTS - 99.73%.............................................................. 191,739,341
(Cost $140,334,177) ------------
NET OTHER ASSETS AND LIABILITIES - 0.27%................................................ 510,186
------------
NET ASSETS - 100.00%.................................................................... $192,249,527
============
</TABLE>
- ------------------------------
* Non-income producing security.
ADR American Depository Receipt
(A) Annualized yields to maturity.
(B) Affiliated issues:
<TABLE>
<CAPTION>
DIVIDEND
PROCEEDS INCOME
SECURITY COST FROM SALES EARNED
- -------- ----------- ---------- --------
<S> <C> <C> <C>
Fleet Financial Group, Inc. $ 158,836 -- $ 4,173
International Business
Machines Corp. $ 2,329,458 $ 57,350 $ 12,348
</TABLE>
(C) Security has been deposited as an initial margin on open futures contracts.
At September 30, 1995, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
NUMBER OF
CONTRACTS CURRENT
PURCHASED EXPIRATION OPENING MARKET
(SOLD) CONTRACT TYPE DATE POSITION VALUE
- --------- ------------------- ---------- ---------- ----------
<C> <S> <C> <C> <C>
11 S&P 500 Stock Index 12/95 $3,139,810 $3,235,100
</TABLE>
See Notes to Financial Statements.
15
<PAGE>
-----------
Galaxy Small Company Index Fund
Fund II PORTFOLIO OF INVESTMENTS
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
COMMON STOCKS - 95.31%
FINANCIAL - 20.61%
6,600 Acordia, Inc....................................................... $ 181,500
26,275 AFLAC, Inc......................................................... 1,090,413
4,700 Alex Brown, Inc.................................................... 274,363
1,700 Alfa Corp.......................................................... 20,825
424 Alleghany Corp.*................................................... 72,504
10,600 AMBAC, Inc......................................................... 466,400
7,700 American Annuity Group, Inc........................................ 84,700
1,300 American Bankers Insurance Group................................... 48,425
4,100 American Health Properties, Inc.................................... 88,663
2,600 American National Insurance Co..................................... 151,450
10,200 American Re Corp................................................... 392,700
6,600 AmeriCredit Corp.*................................................. 98,175
5,500 Ampal-American Israel Corp., Class A*.............................. 31,625
11,750 AmSouth Bancorp.................................................... 446,500
2,400 AmVestors Financial Corp........................................... 27,600
25,050 Aon Corp........................................................... 1,023,919
6,000 Argonaut Group, Inc................................................ 183,000
9,150 Bancorp Hawaii, Inc................................................ 308,813
2,990 BancorpSouth, Inc.................................................. 121,095
500 Bank of Granite Corp............................................... 13,500
12,400 Bank South Corp.................................................... 348,750
8,400 BanPonce Corp...................................................... 325,500
5,100 BayBanks, Inc...................................................... 386,963
37,561 Bear Stearns Cos., Inc............................................. 807,562
4,400 Berkley (W.R.) Corp................................................ 199,650
5,200 Berkshire Realty Co................................................ 51,350
800 BHC Financial, Inc................................................. 12,900
11,967 California Federal Bank............................................ 188,480
12,500 Capital One Financial Corp......................................... 367,188
700 Capital Re Corp.................................................... 21,000
3,200 Capstead Mortgage Corp............................................. 102,000
1,800 Cash America International, Inc.................................... 12,375
300 CCB Financial Corp................................................. 15,338
4,500 Center Financial Corp.............................................. 85,500
8,300 Central Fidelity Banks, Inc........................................ 269,750
5,350 Charter One Financial, Inc......................................... 157,825
472 Chemical Financial Corp............................................ 17,936
13,860 Cincinnati Financial Corp.......................................... 753,638
500 Citizens Bancorp................................................... 16,625
1,321 Citizens, Inc., Class A*........................................... 10,979
7,900 City National Corp................................................. 104,675
1,000 CNA Financial Corp.*............................................... 106,000
5,000 Coast Savings Financial, Inc.*..................................... 131,250
4,100 Collective Bancorp, Inc............................................ 106,088
400 Columbia First Bank, Class A*...................................... 24,100
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
FINANCIAL (CONTINUED)
33,824 Comerica, Inc...................................................... $ 1,230,277
6,615 Commerce Bancshares, Inc........................................... 261,293
6,900 Commercial Federal Corp.*.......................................... 246,675
9,050 Compass Bancshares, Inc............................................ 282,813
7,100 Conseco, Inc....................................................... 371,863
22,477 Countrywide Credit Industries, Inc................................. 528,210
2,400 Cousins Properties, Inc............................................ 43,800
3,900 Crawford & Co., Class B............................................ 61,913
9,500 Crestar Financial Corp............................................. 530,813
9,300 CRI Liquidating, Inc., REIT........................................ 33,713
11,200 Criimi Mae, Inc.................................................... 93,800
2,062 CSF Holdings, Inc.*................................................ 80,160
2,000 Cullen/Frost Bankers, Inc.......................................... 93,000
4,600 CWM Mortgage Holdings, Inc......................................... 62,100
5,200 Dauphin Deposit Corp............................................... 138,775
1,600 Deposit Guaranty Corp.............................................. 67,600
32,818 Dime Bancorp, Inc.*................................................ 385,612
1,700 Downey Financial Corp.............................................. 34,000
1,000 Eaton Vance Corp................................................... 38,500
13,483 Edwards (A.G.), Inc................................................ 358,985
17,300 Emphesys Financial Group, Inc...................................... 642,263
3,600 Enhance Financial Services Group, Inc.............................. 73,800
22,000 Equifax, Inc....................................................... 921,250
19,000 Equitable Cos., Inc................................................ 465,500
6,300 Equitable of Iowa Cos.............................................. 233,100
211 Everen............................................................. 4,541
307 F & M National Corp................................................ 5,296
6,700 Federal Realty Investment Trust.................................... 156,613
10,450 Fifth Third Bancorp................................................ 599,569
5,500 First American Corp................................................ 237,188
400 First American Financial Corp...................................... 9,650
29,433 First Bank System, Inc............................................. 1,416,392
2,500 First Citizens Bancshares, Class A................................. 131,250
4,700 First Colony Corp.................................................. 126,900
7,187 First Commerce Corp................................................ 226,391
1,260 First Commercial Corp.............................................. 35,438
1,200 First Empire State Corp............................................ 228,000
2,000 First Financial Bancorp............................................ 69,000
5,100 First Financial Corp............................................... 108,375
16,350 First Financial Management Corp. (C)............................... 1,596,169
4,500 First Hawaiian, Inc................................................ 132,750
1,909 First Michigan Bank Corp........................................... 50,111
2,600 First National Bancorp............................................. 71,825
16,665 First of America Bank Corp......................................... 716,595
10,900 First Security Corp................................................ 341,988
8,250 First Tennessee National Corp...................................... 457,875
9,500 First USA, Inc..................................................... 515,375
</TABLE>
See Notes to Financial Statements.
16
<PAGE>
-----------
Galaxy Small Company Index Fund
Fund II PORTFOLIO OF INVESTMENTS (continued)
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
FINANCIAL (CONTINUED)
11,550 First Virginia Banks, Inc.......................................... $ 476,438
11,200 Firstar Corp....................................................... 415,800
4,500 Firstbank Puerto Rico.............................................. 101,250
4,900 FirstFed Michigan Corp............................................. 172,113
1,050 FirsTier Financial, Inc............................................ 43,181
2,000 Foothill Group, Inc., Class A...................................... 59,750
4,900 Foremost Corp. Of America.......................................... 216,825
6,700 Fourth Financial Corp.............................................. 234,500
10,400 Franklin Resources, Inc............................................ 599,300
2,970 Fremont General Corp............................................... 82,046
4,200 Fund American Enterprises Holdings*................................ 306,600
1,275 Gainsco, Inc....................................................... 11,393
3,700 Gallagher (Arthur J.) & Co......................................... 131,350
9,200 GEICO Corp......................................................... 627,900
8,468 Glendale Federal Savings Bank*..................................... 139,722
800 Greater NY Savings Bank*........................................... 9,600
10,200 Green Tree Financial Corp.......................................... 622,200
900 Hancock Holding Co................................................. 31,725
2,520 Harleysville National Corp......................................... 68,985
7,600 Health & Retirement Properties Trust............................... 118,750
5,000 Health Care Property Investments, Inc.............................. 169,375
25,100 Hibernia Corp., Class A............................................ 254,138
1,000 Home Beneficial Corp., Class B..................................... 22,750
1,200 Homeland Bankshares Corp........................................... 35,700
7,400 Horace Mann Educators Corp......................................... 203,500
4,800 Hartford Steam Boiler
Inspection & Insurance Co.......................................... 232,200
32,581 Huntington Bancshares, Inc......................................... 733,073
3,800 Imperial Credit Industries, Inc.*.................................. 107,825
8,700 Integra Financial Corp............................................. 505,688
5,300 John Alden Financial Corp.......................................... 119,913
3,600 John Nuveen Co., Class A........................................... 89,100
9,400 Kansas City Southern Industries, Inc............................... 427,700
6,600 Kemper Corp........................................................ 318,450
3,300 Keystone Financial, Inc............................................ 105,600
5,800 Labone, Inc........................................................ 75,400
5,250 Legg Mason, Inc.................................................... 156,188
21,300 Lehman Brothers Holdings, Inc...................................... 492,563
2,500 Leucadia National Corp............................................. 146,563
300 Liberty Bancorp, Inc............................................... 11,025
3,600 Liberty Corp....................................................... 117,000
8,900 Life Partners Group, Inc........................................... 153,525
1,900 Life Re Corp....................................................... 39,663
2,600 Magna Bancorp, Inc................................................. 78,000
5,200 Magna Group, Inc................................................... 126,100
800 Mark Twain Bancshares, Inc......................................... 26,800
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
FINANCIAL (CONTINUED)
19,260 Marshall & Ilsley Corp............................................. $ 483,908
8,600 MBIA, Inc.......................................................... 606,300
2,700 M.D.C. Holdings, Inc............................................... 20,588
8,100 Mercantile Bancorp, Inc............................................ 362,475
9,900 Mercantile Bankshares Corp......................................... 269,775
700 Mercer International, Inc.*........................................ 17,500
18,666 Mercury Finance Co................................................. 454,984
2,200 Mercury General Corp............................................... 83,875
12,600 Meridian Bancorp, Inc.............................................. 481,950
1,800 Merry Land & Investment, Inc....................................... 38,025
16,400 MGIC Investment Corp............................................... 938,900
4,400 Michigan National Corp............................................. 477,950
4,174 Mid-Am, Inc........................................................ 68,871
2,735 NBT Bancorp, Inc................................................... 45,128
1,600 NAC Re Corp........................................................ 58,000
1,050 National Commerce Bancorp.......................................... 25,725
471 National Penn Bancshares, Inc...................................... 12,729
5,600 National Re Corp................................................... 198,100
4,100 Nationwide Health Properties, Inc.................................. 168,100
11,500 New Plan Realty Trust.............................................. 254,438
2,300 North American Mortgage Co......................................... 59,800
3,440 North Fork Bancorp., Inc........................................... 71,380
14,750 Northern Trust Corp................................................ 678,500
8,000 Ohio Casualty Corp................................................. 286,000
12,337 Old Kent Financial Corp............................................ 470,348
2,315 Old National Bancorp............................................... 79,868
14,200 Old Republic International Corp.................................... 410,025
2,300 Omega Financial Corp............................................... 69,000
2,600 ONBANCorp, Inc..................................................... 84,500
5,156 Orion Capital Corp................................................. 228,798
15,750 Paine Webber Group, Inc............................................ 311,063
1,100 PEC Israel Economic Corp.*......................................... 27,500
1,500 PennCorp Financial Group, Inc...................................... 35,813
1,200 Peoples Bank Bridgeport............................................ 25,800
3,000 Peoples Heritage Financial Group, Inc.............................. 54,750
4,600 Phoenix Resource Cos., Inc......................................... 178,250
3,600 Pikeville National Corp............................................ 72,900
1,200 Pioneer Group, Inc................................................. 32,850
7,950 Poe & Brown, Inc................................................... 194,775
4,860 Premier Bancorp, Inc.*............................................. 108,135
3,300 Price (T. Rowe) & Associates, Inc.................................. 169,125
13,800 Progessive Corp. of Ohio........................................... 617,550
3,600 Protective Life Corp............................................... 105,300
2,100 Provident Bankshares Corp.......................................... 63,000
8,600 Provident Life & Accident Insurance Co............................. 233,275
1,100 PXRE Corp.......................................................... 29,975
</TABLE>
See Notes to Financial Statements.
17
<PAGE>
-----------
Galaxy Small Company Index Fund
Fund II PORTFOLIO OF INVESTMENTS (continued)
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
FINANCIAL (CONTINUED)
6,283 Quick & Reilly Group, Inc.......................................... $ 288,233
2,500 RCSB Financial, Inc................................................ 60,313
10,500 Regions Financial Corp............................................. 426,563
4,729 Resource Bancshares Mortgage Group*................................ 72,117
3,900 Resource Mortgage Capital, Inc..................................... 78,975
12,300 Riggs National Corp.*.............................................. 158,363
14,100 Rockefeller Center Properties, Inc................................. 102,225
3,816 Roosevelt Financial Group, Inc..................................... 67,257
13,800 Rouse Co........................................................... 301,875
7,600 S & T Bancorp, Inc................................................. 190,000
27,900 Schwab (Charles) Corp.............................................. 781,200
700 Seafield Capital Corp.............................................. 26,075
6,996 Security Capital Pacific Trust..................................... 132,924
1,800 SFFed Corp......................................................... 54,338
12,500 Signet Banking Corp................................................ 328,125
19,220 Southern National Corp............................................. 504,525
16,250 SouthTrust Corp.................................................... 408,281
3,696 Sovereign Bancorp, Inc............................................. 39,501
4,400 St. Paul Bancorp, Inc.............................................. 117,150
8,900 Standard Federal Bancorp., Inc..................................... 347,100
6,500 Star Banc Corp..................................................... 347,750
16,700 State Street Boston Corp........................................... 668,000
1,800 Stewart Information Services Corp.................................. 34,650
9,600 Storage Equities, Inc.............................................. 178,800
22,600 Student Loan Marketing Association................................. 1,220,400
8,030 Summit Bancorp..................................................... 223,836
5,900 SunAmerica, Inc.................................................... 370,963
625 Susquehanna Bancshares, Inc........................................ 17,344
16,700 Synovus Financial Corp............................................. 436,288
5,600 Taubman Centers, Inc............................................... 56,000
600 TCF Financial Corp................................................. 34,950
800 Trans Financial, Inc............................................... 14,200
1,400 Transatlantic Holdings, Inc........................................ 94,150
400 Trenwick Group, Inc................................................ 21,200
6,000 Trust Co. of New Jersey............................................ 87,000
1,000 Trustmark Corp..................................................... 18,500
8,500 20th Century Industries............................................ 130,688
14,300 UJB Financial Corp................................................. 457,600
2,134 UMB Financial Corp................................................. 90,695
7,387 Union Planters Corp................................................ 219,763
4,300 United Asset Management Corp....................................... 172,538
2,600 United Bankshares, Inc............................................. 77,025
1,800 United Carolina Bancshares......................................... 62,550
1,650 United Cos. Financial Corp......................................... 112,613
7,600 United Dominion Realty Trust....................................... 108,300
7,200 United Insurance Cos., Inc.*....................................... 100,800
12,000 Unitrin, Inc....................................................... 564,000
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
FINANCIAL (CONTINUED)
4,300 Universal Health Realty Income Trust............................... $ 71,488
2,000 UST Corp.*......................................................... 28,000
9,413 Valley National Bancorp............................................ 232,972
2,100 Value Line, Inc.................................................... 69,300
2,900 Vornado Realty Trust............................................... 108,750
9,355 Washington Federal, Inc............................................ 222,181
13,050 Washington Mutual, Inc............................................. 345,825
6,200 Washington National Corp........................................... 154,225
1,100 Washington Real Estate Investment Trust............................ 16,775
3,400 Weingarten Realty Investors........................................ 120,275
3,400 Wellsford Residential Property Trust............................... 72,675
8,400 West One Bancorp................................................... 337,050
2,300 White River Corp.*................................................. 85,963
1,100 Whitney Holding Corp............................................... 34,650
10,900 Wilmington Trust Corp.............................................. 321,550
1,100 Zenith National Insurance Co....................................... 26,675
4,400 Zions Bancorp...................................................... 269,500
------------
56,173,163
------------
CONSUMER STAPLES - 17.19%
7,300 AAR Corp........................................................... 133,225
1,900 ADAC Laboratories.................................................. 22,800
5,800 Airgas, Inc.*...................................................... 154,425
3,600 Alliance Pharmaceutical Corp.*..................................... 43,425
4,900 American Filtrona Corp............................................. 153,125
1,000 American Medical Response, Inc.*................................... 28,375
6,500 Amylin Pharmaceuticals, Inc. *..................................... 47,125
4,000 AnnTaylor Stores, Inc.*............................................ 70,500
6,400 Aphton Corp.*...................................................... 64,000
2,400 Apogee Enterprises, Inc............................................ 36,000
450 Apple South, Inc................................................... 10,238
2,900 Applebees International, Inc....................................... 79,025
18,800 Applied Bioscience International, Inc.*............................ 119,850
10,940 Apria Healthcare Group, Inc.*...................................... 270,765
3,500 Athena Neurosciences, Inc.*........................................ 41,781
1,500 Aztar Corp.*....................................................... 12,563
7,666 Ballard Medical Products........................................... 125,531
3,800 Barr Laboratories, Inc.*........................................... 90,725
314 Benson Eyecare Corp.*.............................................. 3,101
8,793 Bergen Brunswig Corp., Class A..................................... 187,950
9,500 Best Buy Co., Inc.*................................................ 249,375
5,900 BIC Corp........................................................... 235,263
1,300 Bindley Western Industries, Inc.................................... 24,213
7,100 Biogen, Inc.*...................................................... 426,000
1,400 Blair Corp......................................................... 47,600
2,325 Block Drug, Inc., Class A.......................................... 90,094
4,500 Bolt, Beranek & Newman, Inc.*...................................... 168,188
</TABLE>
See Notes to Financial Statements.
18
<PAGE>
-----------
Galaxy Small Company Index Fund
Fund II PORTFOLIO OF INVESTMENTS (continued)
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
CONSUMER STAPLES (CONTINUED)
13,900 Bon-Ton Stores, Inc.*.............................................. $ 105,988
3,400 Books-A-Million, Inc.*............................................. 59,925
7,800 Borg-Warner Automotive, Inc........................................ 249,600
14,850 Brinker International, Inc.*....................................... 220,894
19,700 Broadway Stores, Inc.*............................................. 147,750
2,100 Brown (Tom), Inc.*................................................. 28,613
6,600 Buffets, Inc.*..................................................... 82,500
9,100 Burlington Industries, Inc.*....................................... 114,888
12,450 CML Group, Inc..................................................... 87,150
3,700 Caldor Corp.*...................................................... 20,350
12,600 Callaway Golf Co................................................... 195,300
12,100 Caraustar Industries, Inc.......................................... 242,000
4,875 Cardinal Health, Inc............................................... 269,953
24,300 Caremark International, Inc........................................ 522,450
6,400 Carter-Wallace, Inc................................................ 80,000
5,600 Cato Corp., Class A................................................ 39,900
16,300 Centocor, Inc.*.................................................... 177,263
2,400 Champion Enterprises, Inc.*........................................ 47,700
4,000 Charter Medical Corp.*............................................. 82,000
6,450 Checkers Drive-In Restaurants, Inc.*............................... 12,497
4,200 Chemed Corp........................................................ 148,575
9,400 Chiquita Brands International, Inc................................. 160,975
8,400 Chiron Corp.*...................................................... 760,200
7,400 Chronimed, Inc..................................................... 96,200
4,400 Church & Dwight Co., Inc........................................... 95,700
4,300 Claire's Stores, Inc............................................... 88,150
900 CLARCOR, Inc....................................................... 21,150
5,200 Coca-Cola Bottling Co.............................................. 183,300
18,900 Coca-Cola Enterprises, Inc......................................... 465,413
2,400 Coleman, Inc.*..................................................... 90,000
2,561 Community Health Systems, Inc.*.................................... 103,400
4,033 Converse, Inc.*.................................................... 23,190
2,600 Cordis Corp.*...................................................... 220,350
4,200 Coventry Corp.*.................................................... 82,950
15,050 Cracker Barrel Old Country Store, Inc.............................. 302,881
4,900 Cross (A.T.) Co., Class A.......................................... 82,688
4,000 Cytogen Corp.*..................................................... 20,500
11,000 Dean Foods Co...................................................... 313,500
1,200 Dekalb Genetics Corp., Class B..................................... 56,400
1,300 Delchamps, Inc..................................................... 24,050
5,700 Delta Woodside Industries, Inc..................................... 43,463
500 Diagnostic Products Corp........................................... 19,250
9,600 Dole Food, Inc..................................................... 332,400
13,243 Dollar General Corp................................................ 389,013
8,600 Dress Barn, Inc.*.................................................. 89,225
5,100 Dreyer's Grand Ice Cream, Inc...................................... 196,350
24,800 Duracell International, Inc........................................ 1,112,900
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
CONSUMER STAPLES (CONTINUED)
4,700 Duty Free International, Inc....................................... $ 59,925
4,100 Edison Brothers Stores, Inc........................................ 23,575
13,500 Egghead, Inc.*..................................................... 109,688
10,200 Employee Benefit Plans, Inc.*...................................... 196,350
12,180 Enzo Biochem, Inc.*................................................ 242,078
10,200 Family Dollar Stores, Inc.......................................... 193,800
35,400 Federated Department Stores, Inc.*................................. 1,004,475
10,028 FHP International Corp.*........................................... 241,926
900 Fieldcrest Cannon, Inc.*........................................... 19,688
4,200 First Brands Corp.................................................. 189,000
2,500 Flagstar Cos., Inc.*............................................... 13,125
12,900 Foodmaker, Inc.*................................................... 74,175
10,200 Forest Laboratories, Inc........................................... 453,900
12,599 Foundation Health Corp.*........................................... 480,337
4,800 Fred Meyer, Inc.*.................................................. 117,600
3,600 Fresenius USA, Inc.*............................................... 56,250
7,600 Furon Co........................................................... 142,500
3,150 G & K Services, Inc., Class A...................................... 73,238
5,500 Genesis Health Ventures, Inc.*..................................... 196,625
7,700 Good Guys, Inc.*................................................... 87,588
15,100 Griffon Corp.*..................................................... 130,238
1,700 Guilford Mills, Inc................................................ 41,225
4,800 Gymboree Corp.*.................................................... 144,600
3,800 Haemonetics Corp.*................................................. 87,400
10,600 Hancock Fabrics, Inc............................................... 106,000
8,700 Hannaford Brothers Co.............................................. 233,813
17,700 Harte-Hanks Communications, Inc.................................... 528,788
9,550 Haverty Furniture Cos., Inc........................................ 130,119
6,200 HBO & Co........................................................... 387,500
4,200 Health Care & Retirement Corp.*.................................... 134,925
3,400 Health Care, REIT.................................................. 53,125
6,975 Health Management Associates, Inc., Class A*....................... 224,072
12,100 Health Systems International, Inc., Class A*....................... 364,513
10,800 Healthsource, Inc.*................................................ 519,750
9,800 HEALTHSOUTH Rehabilitation Corp.*.................................. 249,900
9,580 Healthwise of America, Inc.*....................................... 268,240
3,900 Heart Technology, Inc.*............................................ 108,713
1,900 Helene Curtis Industries, Inc...................................... 57,238
5,800 Herbalife International, Inc....................................... 56,550
9,700 HFS, Inc........................................................... 508,038
8,100 Hillenbrand Industries, Inc........................................ 226,800
11,956 Home Shopping Network, Inc.*....................................... 110,593
4,400 Hometown Buffet, Inc.*............................................. 61,600
4,922 Horizon Healthcare Corp.*.......................................... 111,976
8,900 Hormel Foods Corp.................................................. 234,738
25,300 Host Marriott Corp.*............................................... 313,088
2,550 Hudson Foods, Inc., Class A........................................ 35,381
</TABLE>
See Notes to Financial Statements.
19
<PAGE>
-----------
Galaxy Small Company Index Fund
Fund II PORTFOLIO OF INVESTMENTS (continued)
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
CONSUMER STAPLES (CONTINUED)
31,621 Humana, Inc.*...................................................... $ 636,373
14,000 IBP, Inc........................................................... 747,250
9,127 ICN Pharmaceuticals, Inc........................................... 198,512
11,000 ICOS Corp.*........................................................ 75,625
7,300 Immulogic Pharmaceutical Corp.*.................................... 89,425
3,300 Immunex Corp.*..................................................... 47,025
12,100 Interco, Inc.*..................................................... 95,288
7,000 International Dairy Queen, Inc., Class A*.......................... 148,313
4,850 International Multifoods Corp...................................... 104,275
9,800 Interneuron Pharmaceuticals, Inc.*................................. 112,700
8,300 Interstate Bakeries Corp........................................... 175,338
2,100 Invacare Corp...................................................... 100,800
5,500 Isomedix, Inc.*.................................................... 80,438
13,790 IVAX Corp.......................................................... 415,424
9,100 J & J Snack Foods Corp.*........................................... 106,925
200 Jacobs Engineering Group, Inc.*.................................... 4,975
2,800 Jones Apparel Group, Inc.*......................................... 99,750
11,900 Kaman Corp., Class A............................................... 141,313
5,500 Kaydon Corp........................................................ 162,250
6,900 Kellwood Co........................................................ 142,313
8,900 Kohl's Corp........................................................ 461,688
6,300 Komag, Inc.*....................................................... 411,863
10,800 La Quinta Inns, Inc................................................ 302,400
7,821 Lancaster Colony Corp.............................................. 265,914
2,500 Lance, Inc......................................................... 45,625
5,500 Lechters, Inc.*.................................................... 60,500
21,800 Leggett & Platt, Inc............................................... 536,825
7,200 Lennar Corp........................................................ 156,600
900 Life Technologies, Inc............................................. 23,850
2,527 Ligand Pharmaceuticals, Class B*................................... 24,954
2,600 Lincare Holdings, Inc.*............................................ 66,950
3,300 Lindsay Manufacturing Co.*......................................... 109,725
6,600 Liposome, Inc.*.................................................... 111,375
4,400 Lone Star Steakhouse & Saloon, Inc.*............................... 180,400
9,000 MacFrugals Bargains Closeouts*..................................... 141,750
21,400 McCormick & Co., Inc............................................... 510,925
4,200 Medicine Shoppe International, Inc................................. 185,850
6,400 Medimmune, Inc.*................................................... 71,200
7,200 Meditrust*......................................................... 249,300
2,000 MGM Grand, Inc.*................................................... 51,000
12,000 Michael Foods, Inc................................................. 160,500
3,800 Michaels Stores, Inc.*............................................. 61,750
8,000 Mid Atlantic Medical Services, Inc.*............................... 157,000
12,450 Mirage Resorts, Inc.*.............................................. 409,294
4,050 Mohawk Industries, Inc.*........................................... 70,875
8,700 Morrison Restaurants, Inc.......................................... 168,563
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
CONSUMER STAPLES (CONTINUED)
6,500 Multicare Cos., Inc.*.............................................. $ 151,125
29,700 Mylan Laboratories, Inc............................................ 594,000
1,700 National Presto Industries, Inc.................................... 76,288
600 Nautica Enterprises, Inc.*......................................... 20,550
8,600 Neiman-Marcus Group, Inc........................................... 154,800
6,000 Noven Pharmaceuticals, Inc.*....................................... 64,500
1,400 Nu-kote Holding, Inc., Class A*.................................... 30,450
2,000 Oakwood Homes Corp................................................. 70,500
18,486 Office Depot, Inc.*................................................ 556,891
1,564 Omega Healthcare Investors......................................... 41,837
4,950 Outback Steakhouse, Inc.*.......................................... 152,213
3,450 Owens & Minor, Inc., Holding Co.................................... 44,419
9,800 Oxford Health Plans, Inc.*......................................... 712,950
5,900 Oxford Industries, Inc............................................. 104,725
5,950 Pacific Physician Services, Inc.*.................................. 102,638
4,100 PacifiCare Health Systems, Class B................................. 278,800
3,900 Park-Ohio Industries, Inc.*........................................ 56,550
800 Penn Traffic Co.*.................................................. 14,200
4,600 Penwest, Ltd....................................................... 116,150
10,300 Perrigo Co.*....................................................... 126,175
3,000 Phillips-Van Heusen Corp........................................... 34,500
900 PhyCor, Inc.*...................................................... 30,825
5,100 Physician Corp. of America*........................................ 80,325
10,920 Pier 1 Imports, Inc................................................ 110,565
7,100 Pope & Talbot, Inc................................................. 110,050
7,600 Purepac, Inc.*..................................................... 63,650
8,400 Pyxis Corp.*....................................................... 162,750
4,000 Quantum Health Resources, Inc.*.................................... 43,000
3,800 Regis Corp.*....................................................... 81,700
4,000 Renal Treatment Centers, Inc.*..................................... 148,000
14,900 Revco D. S., Inc.*................................................. 350,150
8,000 Richfood Holdings, Inc............................................. 201,500
68,340 RJR Nabisco Holdings Corp. (C)..................................... 2,212,508
1,200 Roberts Pharmaceutical Corp.*...................................... 28,200
2,200 Rock Bottom Restaurants, Inc.*..................................... 35,750
600 Ryland Group, Inc.................................................. 9,300
11,700 Sanderson Farms, Inc............................................... 141,863
10,800 Savannah Foods Industries, Inc..................................... 147,150
5,700 Scherer (R.P.) Corp.*.............................................. 247,238
6,500 Scios Nova, Inc.*.................................................. 26,813
2,700 Sequus Pharmaceuticals, Inc.*...................................... 31,388
28,950 Service Merchandise, Inc.*......................................... 206,269
6,100 Shopko Stores, Inc................................................. 75,488
2,900 Showboat, Inc...................................................... 62,713
500 Sierra Health Services, Inc.*...................................... 12,500
8,200 Sizzler International, Inc......................................... 45,100
</TABLE>
See Notes to Financial Statements.
20
<PAGE>
-----------
Galaxy Small Company Index Fund
Fund II PORTFOLIO OF INVESTMENTS (continued)
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
CONSUMER STAPLES (CONTINUED)
2,300 Smithfield Foods, Inc.*............................................ $ 51,175
5,300 Smucker (J.M.) Co., Class A........................................ 110,638
1,800 Sofamor/Danek Group, Inc.*......................................... 49,950
25,500 Southland Corp.*................................................... 76,500
600 Spiegel, Inc., Class A............................................. 6,525
3,745 Standard Commercial Corp.*......................................... 44,940
1,700 Standex International Corp......................................... 61,838
4,300 Stanhome, Inc...................................................... 136,525
11,800 Starbucks Corp.*................................................... 448,400
9,800 Steris Corp.*...................................................... 412,825
10,100 Stop & Shop Cos., Inc.*............................................ 236,088
4,695 Strawbridge & Clothier, Class A.................................... 89,205
10,600 Stryker Corp....................................................... 494,225
700 Summit Care Corp.*................................................. 17,150
4,100 Summit Technology, Inc.*........................................... 187,575
18,700 Sunbeam Corp....................................................... 278,163
5,100 Sunrise Medical, Inc.*............................................. 140,250
1,900 Super Rite Corp.*.................................................. 48,450
7,200 Surgical Care Affiliates, Inc...................................... 167,400
9,400 Sybron International Corp.*........................................ 378,350
11,500 Tambrands, Inc..................................................... 504,563
14,400 TCBY Enterprises, Inc.............................................. 66,600
7,150 Tecnol Medical Products, Inc.*..................................... 137,638
5,600 Tejon Ranch Co..................................................... 87,500
1,100 Theratech, Inc.*................................................... 18,975
600 Thermo Cardiosystems, Inc.*........................................ 29,025
1,000 Thorn Apple Valley, Inc............................................ 18,750
3,000 Tiffany & Co....................................................... 125,625
1,300 Timberland Co., Class A*........................................... 41,113
9,000 Toll Brothers, Inc.*............................................... 169,875
4,010 Tootsie Roll Industries............................................ 158,896
20,600 Topps, Inc......................................................... 133,900
3,100 Triarc Cos., Inc.*................................................. 44,950
5,600 Tyco Toys, Inc.*................................................... 29,400
25,666 Tyson Foods, Inc., Class A......................................... 689,774
6,600 U.S. Filter Corp.*................................................. 158,400
16,675 Unifi, Inc......................................................... 408,538
1,100 Unilab Corp.*...................................................... 4,675
10,300 Universal Corp..................................................... 231,750
7,700 Universal Foods Corp............................................... 268,538
7,000 Universal Health Services, Class B*................................ 239,750
1,600 Urban Outfitters, Inc.*............................................ 40,800
900 Valmont Industries, Inc............................................ 21,825
11,527 Value Health, Inc.*................................................ 305,466
3,726 Vencor, Inc.*...................................................... 119,235
8,000 Ventritex, Inc.*................................................... 172,000
4,100 Venture Stores, Inc................................................ 23,575
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
CONSUMER STAPLES (CONTINUED)
6,600 Vicor Corp.*....................................................... $ 159,638
1,400 VISX, Inc.*........................................................ 31,784
5,700 Vivra, Inc.*....................................................... 180,975
6,400 Vons Cos., Inc.*................................................... 152,000
6,900 Waban, Inc.*....................................................... 130,238
8,600 Warnaco Group, Inc., Class A....................................... 206,400
9,022 Watson Pharmaceuticals, Inc.*...................................... 369,902
2,800 WD-40 Co........................................................... 118,300
1,400 Webb (Del E.) Corp................................................. 26,425
3,900 Wellpoint Health Networks, Class A*................................ 118,463
3,100 Whole Foods Market, Inc.*.......................................... 40,688
4,050 Williams-Sonoma, Inc.*............................................. 84,038
1,700 Windmere Corp...................................................... 12,538
600 WLR Foods, Inc..................................................... 8,100
900 Wolverine World Wide, Inc.......................................... 24,638
------------
46,850,401
------------
TECHNOLOGY - 16.65%
14,800 Acxiom Corp.*...................................................... 418,100
16,400 Adaptec, Inc.*..................................................... 676,500
20,100 Adobe Systems, Inc................................................. 1,040,175
7,000 Adtran, Inc.*...................................................... 243,250
2,100 Advanced Technology Laboratories, Inc.*............................ 37,800
600 Alantec Corp.*..................................................... 19,050
1,050 Alliance Semiconductor Corp.*...................................... 41,738
3,600 America Online, Inc.*.............................................. 247,500
16,600 American Power Conversion Corp.*................................... 203,350
3,000 Amphenol Corp., Class A*........................................... 64,875
17,550 Analog Devices, Inc.*.............................................. 607,669
9,300 Analysts International Corp........................................ 297,600
2,800 Anixter International, Inc......................................... 115,850
1,700 Antec Corp.*....................................................... 22,738
1,500 Aquarion Co........................................................ 36,375
10,804 Arrow Electronics, Inc.*........................................... 587,468
700 Ascend Communications, Inc.*....................................... 56,000
25 Associated Group, Inc., Class A*................................... 519
8,386 AST Research, Inc.*................................................ 83,860
10,200 Atmel Corp.*....................................................... 344,250
1,300 Augat, Inc......................................................... 24,538
3,100 Aura Systems, Inc.*................................................ 20,538
2,000 Avid Technology, Inc.*............................................. 86,000
10,300 Avnet, Inc......................................................... 531,738
2,500 Banyan Systems, Inc.*.............................................. 25,313
22,017 Bay Networks, Inc.*................................................ 1,175,157
8,300 BE Aerospace, Inc.*................................................ 69,513
2,200 BHC Communications, Class A........................................ 199,650
4,100 BISYS Group, Inc.*................................................. 104,550
</TABLE>
See Notes to Financial Statements.
21
<PAGE>
-----------
Galaxy Small Company Index Fund
Fund II PORTFOLIO OF INVESTMENTS (continued)
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
TECHNOLOGY (CONTINUED)
3,600 Black Box Corp.*................................................... $ 66,600
1,000 BMC Industries, Inc................................................ 38,625
8,600 BMC Software, Inc.*................................................ 395,600
300 Boole & Babbage, Inc.*............................................. 9,038
7,210 Borland International, Inc.*....................................... 105,446
3,000 Boston Technology, Inc.*........................................... 45,375
6,400 Broderbund Software, Inc.*......................................... 487,200
5,000 Brooktree Corp.*................................................... 100,000
6,500 BW/IP, Inc......................................................... 116,188
6,700 C-Cube Microsystems, Inc.*......................................... 306,525
2,600 C-Tec Corp.*....................................................... 60,450
9,900 Cadence Design Systems, Inc.*...................................... 388,575
7,100 Calgene, Inc.*..................................................... 47,925
6,400 California Microwave, Inc.*........................................ 161,600
6,600 Cascade Communications Corp.*...................................... 325,050
400 Catalina Marketing Corp.*.......................................... 24,800
8,300 Catellus Development Corp.*........................................ 52,913
1,100 CDI Corp.*......................................................... 22,413
7,100 Century Telephone Enterprises...................................... 215,663
2,400 Cerner Corp.*...................................................... 82,200
5,400 Cheyenne Software, Inc.*........................................... 108,000
1,500 Chipcom Corp.*..................................................... 72,750
7,700 Chips & Technologies, Inc.*........................................ 103,950
13,900 Cirrus Logic, Inc.*................................................ 795,775
1,300 Coherent, Inc.*.................................................... 47,450
2,400 Comdata Holdings Corp.*............................................ 58,500
600 CommNet Cellular, Inc.*............................................ 17,400
2,000 Computer Network Technology Corp.*................................. 14,000
5,000 Compuware Corp.*................................................... 110,000
4,300 Comverse Technology, Inc.*......................................... 93,525
11,500 Conner Peripherals, Inc.*.......................................... 191,188
3,100 Continuum, Inc.*................................................... 118,963
1,900 Control Data Systems, Inc.*........................................ 23,038
8,900 CopyTele, Inc.*.................................................... 67,863
9,150 Credence Systems Corp.*............................................ 331,688
10,700 Cypress Semiconductor Corp.*....................................... 413,288
2,400 Cyrix Corp.*....................................................... 91,500
11,900 Dallas Semiconductor Corp.......................................... 243,950
3,700 Datascope Corp.*................................................... 76,775
8,100 Dell Computer Corp.*............................................... 688,500
700 Devon Group, Inc.*................................................. 30,275
1,500 Dial Page, Inc.*................................................... 26,625
300 Dialogic Corp.*.................................................... 7,425
1,800 DSP Group, Inc.*................................................... 31,950
4,400 Dynatech Corp.*.................................................... 69,300
23,300 EMC Corp.*......................................................... 422,313
3,300 Ennis Business Forms............................................... 45,788
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
TECHNOLOGY (CONTINUED)
5,500 Evans & Sutherland Computer Corp.*................................. $ 103,125
4,800 Exabyte Corp.*..................................................... 64,800
700 Exide Electronics Group, Inc.*..................................... 13,125
7,600 Fair Issac & Co., Inc.............................................. 220,400
10,866 Federal Signal Corp................................................ 241,769
1,700 FileNet Corp.*..................................................... 75,225
5,500 Firstmerit Corp.................................................... 137,500
9,900 Fiserv, Inc.*...................................................... 285,863
4,300 Franklin Electric, Inc............................................. 138,675
1,400 Fusion Systems Corp.*.............................................. 40,950
2,400 General Datacomm Industries, Inc.*................................. 35,400
21,200 General Instrument Corp.*.......................................... 636,000
1,700 Gerber Scientific, Inc............................................. 30,388
1,500 Gupta Corp.*....................................................... 13,313
1,680 Harman International Industries, Inc............................... 82,320
2,400 Heartland Wireless Communications, Inc.*........................... 61,800
2,700 Hunt Manufacturing Co.............................................. 41,850
13,200 IDEXX Laboratories, Inc.*.......................................... 491,700
4,700 Information Resources, Inc.*....................................... 62,863
31,000 Informix Corp.*.................................................... 1,007,500
9,200 Input/Output, Inc.*................................................ 353,050
3,800 Insituform Technologies, Inc., Class A*............................ 53,200
25,400 Integrated Device Technology, Inc.*................................ 635,000
9,200 Integrated Silicon Systems, Inc.*.................................. 276,000
8,000 Interdigital Communications Corp.*................................. 65,500
9,300 Interface, Inc..................................................... 159,263
3,800 Intervoice, Inc.*.................................................. 86,925
7,866 Intl Cabletel, Inc.*............................................... 220,248
3,800 Intl Rectifier Corp.*.............................................. 152,950
14,900 Intl Technology Corp.*............................................. 50,288
10,600 Kenetech Corp.*.................................................... 60,950
4,400 Kimball International, Inc., Class B............................... 123,200
8,000 KLA Instruments Corp.*............................................. 642,000
4,100 Lam Research Corp.*................................................ 244,975
1,300 Landmark Graphics Corp.*........................................... 36,644
2,900 Landstar Systems, Inc.*............................................ 69,963
9,600 Lattice Semiconductor Corp.*....................................... 390,000
8,150 LEGENT Corp.*...................................................... 385,088
16,000 Linear Technology Corp............................................. 664,000
23,800 LSI Logic Corp.*................................................... 1,374,450
10,000 MacNeal-Schwendler Corp............................................ 170,000
300 Macromedia, Inc.*.................................................. 17,138
7,900 Magnetek, Inc.*.................................................... 97,763
4,299 Mark IV Industries, Inc............................................ 95,653
1,400 Marquette Electronics, Class A*.................................... 23,450
4,000 Marshall Industries, Inc.*......................................... 151,000
1,500 Material Sciences Corp.*........................................... 26,438
</TABLE>
See Notes to Financial Statements.
22
<PAGE>
-----------
Galaxy Small Company Index Fund
Fund II PORTFOLIO OF INVESTMENTS (continued)
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
TECHNOLOGY (CONTINUED)
9,200 Maxim Integrated Products, Inc.*................................... $ 680,800
500 McWhorter Technologies, Inc.*...................................... 7,688
5,900 Measurex Corp...................................................... 202,075
3,200 MediSense, Inc.*................................................... 77,200
10,400 Merisel, Inc.*..................................................... 62,400
3,900 Metricom, Inc.*.................................................... 87,750
500 Micro Linear Corp.*................................................ 7,813
1,200 MicroAge, Inc.*.................................................... 13,350
5,250 Microchip Technology, Inc.*........................................ 198,844
6,100 Microtouch Systems, Inc.*.......................................... 103,700
9,500 Mobile Telecommunications
Technologies Corp.*............................................. 293,313
17,109 Molex, Inc......................................................... 620,192
3,900 MTS Systems Corp................................................... 110,175
3,600 Nashua Corp........................................................ 55,350
8,828 Nellcor, Inc.*..................................................... 439,193
15,000 NetManage, Inc.*................................................... 356,250
5,800 Network General Corp.*............................................. 239,250
6,900 New England Business Service, Inc.................................. 142,313
15,000 New World Communications Group, Inc.*.............................. 309,375
4,500 Novellus Systems, Inc.*............................................ 315,000
3,600 Oak Industries, Inc.*.............................................. 108,450
5,300 Octel Communications Corp.*........................................ 184,838
1,300 Optical Imaging Systems, Inc.*..................................... 5,363
800 Optical Data Systems, Inc.*........................................ 31,200
1,350 Osmonics, Inc.*.................................................... 23,794
1,200 Pacific Scientific Co.............................................. 28,950
10,800 Parametric Technology Corp.*....................................... 664,200
1,171 Paxar Corp.*....................................................... 16,101
9,450 Paychex, Inc....................................................... 437,063
16,650 Pioneer Standard Electronics, Inc.................................. 291,375
2,900 Policy Management Systems Corp.*................................... 148,625
7,350 Premier Industrial Corp............................................ 183,750
1,200 Progress Software Corp.*........................................... 80,400
5,300 Protein Design Laboratories, Inc.*................................. 105,338
11,950 Quantum Corp.*..................................................... 261,406
9,100 Recognition International, Inc.*................................... 112,613
12,400 Reynolds & Reynolds Co., Class A................................... 426,250
9,200 Robotic Vision Systems, Inc.*...................................... 213,900
5,000 Sanmina Corp.*..................................................... 238,750
6,500 SCI Systems, Inc.*................................................. 224,250
19,000 Seagate Technology, Inc.*.......................................... 800,375
12,300 Sensormatic Electronics Corp....................................... 282,900
7,200 Sierra On-Line, Inc.*.............................................. 282,600
4,900 Softdesk, Inc.*.................................................... 123,725
2,100 Spacelabs Medical, Inc.*........................................... 59,325
7,600 Standard Microsystems Corp.*....................................... 131,100
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
TECHNOLOGY (CONTINUED)
7,500 Standard Register Co............................................... $ 161,250
7,746 Sterling Software, Inc.*........................................... 352,443
13,028 Storage Technology Corp.*.......................................... 319,186
4,500 StrataCom, Inc.*................................................... 248,625
4,400 Stratus Computer, Inc.*............................................ 115,500
8,600 Structural Dynamics Research Corp.*................................ 159,638
10,000 SunGard Data Systems, Inc.*........................................ 292,500
5,600 Sybase, Inc.*...................................................... 179,900
5,800 Symantec Corp.*.................................................... 174,000
2,400 Symmetricom, Inc.*................................................. 54,000
4,000 Synopsys, Inc.*.................................................... 123,000
2,400 Syratech Corp.*.................................................... 49,200
7,950 System Software Associates, Inc.................................... 318,994
700 Systems & Computer Technology Corp.*............................... 18,900
7,800 Tech Data Corp.*................................................... 110,175
19,200 Teradyne, Inc.*.................................................... 691,200
700 The Learning Co.*.................................................. 42,350
44,400 3Com Corp.* (C).................................................... 2,020,200
4,600 3D Systems Corp.*.................................................. 77,050
15,600 3DO Co.*........................................................... 185,250
6,800 Total System Services, Inc......................................... 145,350
6,600 Tseng Laboratories, Inc............................................ 56,925
2,100 U.S. Long Distance Corp.*.......................................... 31,631
2,000 U.S. Robotics Corp................................................. 170,500
9,500 Unitrode Corp.*.................................................... 276,688
6,150 Vanguard Cellular Systems, Class A*................................ 157,594
4,800 VeriFone, Inc.*.................................................... 133,800
3,200 Viewlogic Systems, Inc.*........................................... 44,800
8,600 Viking Office Products, Inc.*...................................... 359,050
5,732 Vishay Intertechnology, Inc.*...................................... 240,744
7,900 VLSI Technology, Inc.*............................................. 270,575
9,400 Wallace Computer Services, Inc..................................... 535,800
700 Westcott Communications, Inc.*..................................... 10,588
8,800 Western Digital Corp.*............................................. 139,700
23,600 Wheelabrator Technologies, Inc..................................... 351,050
1,500 WMS Industries, Inc.*.............................................. 31,688
6,500 Wyle Electronics................................................... 291,688
18,300 Xilinx, Inc.*...................................................... 880,688
5,300 Young Broadcasting Corp., Class A*................................. 165,625
11,200 Zero Corp.......................................................... 182,000
6,600 Zilog, Inc.*....................................................... 274,725
------------
45,378,573
------------
UTILITIES - 11.72%
33,400 Allegheny Power Systems, Inc....................................... 851,700
6,700 American Water Works, Inc.......................................... 205,188
1,400 Arch Communications Group, Inc.*................................... 36,750
</TABLE>
See Notes to Financial Statements.
23
<PAGE>
-----------
Galaxy Small Company Index Fund
Fund II PORTFOLIO OF INVESTMENTS (continued)
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
UTILITIES (CONTINUED)
600 Aspect Telecommunications Corp.*................................... $ 16,200
5,300 Atlanta Gas Light Co............................................... 204,713
14,900 Atlantic Energy, Inc............................................... 294,275
15,200 Boston Edison Co................................................... 418,000
9,750 Brooklyn Union Gas Co.............................................. 240,094
700 California Water Service Co........................................ 23,013
3,500 CellPro, Inc.*..................................................... 47,250
1,900 Cellular Communications International, Inc.*....................... 71,250
600 Cellular Communications
of Puerto Rico, Inc.*.............................................. 18,300
38,900 Centerior Energy Corp.............................................. 423,038
4,600 Central Louisiana Electric......................................... 117,875
9,500 Central Maine Power Co............................................. 124,688
2,700 CILCORP, Inc....................................................... 102,600
18,100 Cincinnati Bell, Inc............................................... 488,700
9,900 CIPSCO, Inc........................................................ 340,313
8,385 Citizens Utilities Co., Class B*................................... 92,236
23,000 CMS Energy Corp.................................................... 603,750
13,124 Comsat Corp........................................................ 295,290
14,600 Delmarva Power & Light Co.......................................... 333,975
29,050 DPL, Inc........................................................... 671,781
22,950 DQE, Inc........................................................... 608,175
3,150 E'town Corp........................................................ 84,656
3,300 Eastern Utilities Associates....................................... 80,025
4,800 Embrace Systems Corp. (B).......................................... 0
7,200 Equitable Resources, Inc........................................... 212,400
25,000 Florida Progress Corp.............................................. 809,375
27,400 Frontier Corp...................................................... 729,525
9,500 Geotek Communications, Inc.*....................................... 86,688
6,300 Glenayre Technologies, Inc.*....................................... 453,600
5,300 Hawaiian Electric Industries....................................... 201,400
12,600 Idaho Power Co..................................................... 349,650
7,800 IES Industries, Inc................................................ 207,675
24,100 Illinova Corp...................................................... 653,713
10,300 IPALCO Enterprises, Inc............................................ 369,513
17,700 Kansas City Power & Light.......................................... 418,163
11,700 KU Energy Corp..................................................... 339,300
9,200 LG&E Energy Corp................................................... 369,150
3,450 LIN Television Corp.*.............................................. 106,950
3,600 Lincoln Telecommunications......................................... 67,500
28,800 Long Island Lighting............................................... 496,800
8,300 MAPCO, Inc......................................................... 427,450
18,800 MCN Corp........................................................... 371,300
1,300 MFS Communications Co., Inc.*...................................... 56,875
23,114 MidAmerican Energy Co.............................................. 355,378
7,800 Minnesota Power & Light Co......................................... 217,425
14,900 Montana Power Co................................................... 344,563
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
UTILITIES (CONTINUED)
6,800 National Fuel Gas Co............................................... $ 195,500
10,800 Nevada Power Co.................................................... 240,300
15,500 New England Electric System........................................ 573,500
19,800 New York State Electric & Gas...................................... 519,750
17,500 NEXTEL Communications, Inc., Class A*.............................. 295,313
14,900 NIPSCO Industries, Inc............................................. 519,638
1,200 North Carolina Natural Gas......................................... 26,700
35,200 Northeast Utilities................................................ 858,000
1,200 Northwest Natural Gas Co........................................... 37,200
1,800 Northwestern Public Service Co..................................... 45,900
3,800 NUI Corp........................................................... 63,175
11,000 Oklahoma Gas & Electric............................................ 413,875
3,300 Orange & Rockland Utilities........................................ 117,563
2,500 Otter Tail Power Co................................................ 85,625
39,500 P P & L Resources, Inc............................................. 923,313
5,450 Paging Network, Inc.*.............................................. 261,600
600 Pennsylvania Enterprises, Inc...................................... 20,700
900 People's Choice TV Corp.*.......................................... 22,050
2,600 PictureTel Corp.*.................................................. 117,650
5,544 Piedmont Natural Gas Co............................................ 110,880
21,300 Pinnacle West Capital Corp......................................... 559,125
12,800 Portland General Corp.............................................. 328,000
30,400 Potomac Electric Power Co.......................................... 737,200
14,600 Public Service Co. of Colorado..................................... 500,050
11,000 Public Service Co. of New Mexico*.................................. 180,125
6,450 Public Service Co. of North Carolina............................... 104,006
16,500 Puget Sound Power & Light.......................................... 383,625
14,400 Rochester Gas & Electric........................................... 340,200
30,300 San Diego Gas & Electric........................................... 700,688
24,600 SCANA Corp......................................................... 590,400
2,400 Scripps (E.W.) Co., Class A........................................ 83,100
7,400 Sierra Pacific Resources........................................... 169,275
17,700 Southern New England Telecommunication............................. 626,138
11,700 Southwest Gas Corp................................................. 182,813
3,500 Southwestern Energy Co............................................. 47,688
12,500 Southwestern Public Service Co..................................... 407,813
8,300 Symbol Technologies, Inc.*......................................... 274,938
5,300 TCA Cable Tv, Inc.................................................. 152,375
31,700 TECO Energy, Inc................................................... 740,988
8,100 Telephone & Data Systems, Inc...................................... 340,200
32,200 Tucson Electric Power Co.*......................................... 100,625
18,200 Turner Broadcasting System, Class B................................ 500,500
9,400 UGI Corp........................................................... 193,875
5,400 United Cities Gas Co............................................... 89,100
6,600 United Water Resources, Inc........................................ 84,150
8,400 U.S. Cellular Corp.*............................................... 306,600
11,100 UtiliCorp United, Inc.............................................. 312,188
</TABLE>
See Notes to Financial Statements.
24
<PAGE>
-----------
Galaxy Small Company Index Fund
Fund II PORTFOLIO OF INVESTMENTS (continued)
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
UTILITIES (CONTINUED)
12,400 Valero Energy Corp................................................. $ 297,600
5,700 Washington Energy Co............................................... 97,613
8,600 Washington Gas Light Co............................................ 170,925
11,500 Washington Water Power............................................. 185,438
4,000 Western Gas Resources, Inc......................................... 67,000
17,024 Western Resources, Inc............................................. 555,408
1,500 Western Waste Industries*.......................................... 30,000
24,750 Wisconsin Energy Corp.............................................. 699,188
18,014 Worldcom, Inc.*.................................................... 578,700
6,100 WPL Holdings, Inc.................................................. 178,425
5,700 WPS Resources Corp................................................. 173,138
------------
31,955,680
------------
CONSUMER CYCLICAL - 10.06%
7,750 Acclaim Entertainment, Inc.*....................................... 199,563
13,750 Advanta Corp., Class A............................................. 618,750
6,500 ADVO, Inc.......................................................... 154,375
11,146 AES Corp.*......................................................... 211,774
700 Alexander's, Inc.*................................................. 42,175
1,700 Allen Group, Inc................................................... 61,625
5,250 American Business Information, Inc.*............................... 106,313
3,200 American Classic Voyages Co........................................ 32,800
5,100 American Media, Inc., Class A...................................... 29,325
2,400 Ameristar Casinos, Inc.*........................................... 15,600
2,200 Ameron, Inc........................................................ 80,025
600 Arbor Drugs, Inc................................................... 11,250
4,500 Arctco, Inc........................................................ 57,375
4,000 Argosy Gaming Corp.*............................................... 48,000
2,000 Arvin Industries, Inc.............................................. 42,750
6,200 Autotote Corp., Class A*........................................... 27,125
28,000 AutoZone, Inc.*.................................................... 714,000
2,700 Baker (J.), Inc.................................................... 21,938
5,300 Bandag, Inc........................................................ 280,238
4,350 Banta Corp......................................................... 184,875
7,400 Belo (A.H.) Corp., Class A......................................... 254,375
12,066 Bob Evans Farms, Inc............................................... 232,271
13,937 Bombay Co., Inc.*.................................................. 113,238
17,700 Boyd Gaming Corp.*................................................. 263,288
6,200 Breed Technologies, Inc............................................ 123,225
2,300 Burlington Coat Factory Warehouse Corp.*........................... 30,475
8,850 Butler Manufacturing Co............................................ 247,800
1,800 Cablevision Systems Corp., Class A*................................ 107,325
5,200 Carlisle Cos., Inc................................................. 216,450
3,300 Carson, Pirie, Scott & Co.*........................................ 62,700
5,000 Casey's General Stores, Inc........................................ 113,125
1,200 Casino America, Inc.*.............................................. 11,250
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
CONSUMER CYCLICAL (CONTINUED
3,100 Casino Magic Corp.*................................................ $ 16,856
2,200 CCH, Inc., Class A................................................. 53,075
4,300 CellStar Corp.*.................................................... 134,375
2,800 Central Newspapers, Inc., Class A.................................. 85,400
15,093 Century Communications Corp., Class A*............................. 152,817
4,345 Chris-Craft Industries, Inc.*...................................... 189,008
3,100 Chromcraft Revington, Inc.*........................................ 75,950
12,250 Circus Circus Enterprises, Inc.*................................... 343,000
12,108 Clayton Homes, Inc................................................. 287,565
800 Clear Channel Communications, Inc.*................................ 60,600
6,320 Comdisco, Inc...................................................... 188,020
4,800 Compression Laboratories, Inc.*.................................... 37,800
3,400 CompUSA, Inc.*..................................................... 146,200
11,000 Consolidated Stores Corp.*......................................... 254,375
5,100 CPI Corp........................................................... 112,838
6,400 Crown Crafts, Inc.................................................. 83,200
9,800 Danaher Corp....................................................... 320,950
5,300 Discovery Zone, Inc.*.............................................. 29,647
4,800 Donaldson, Inc..................................................... 118,200
2,300 Eagle Hardware & Garden, Inc.*..................................... 21,563
1,000 Exide Corp......................................................... 50,000
900 Express Scripts, Inc., Class A*.................................... 39,600
2,645 Fedders Corp.*..................................................... 17,523
661 Fedders Corp., Class A*............................................ 3,222
3,400 Fibreboard Corp.*.................................................. 87,975
1,900 Fisher Scientific International, Inc............................... 61,513
10,900 Flowers Industries, Inc............................................ 224,813
105,400 Food Lion, Inc., Class B........................................... 638,988
1,100 Franklin Quest Co.*................................................ 26,950
12,400 Friedman's, Inc., Class A*......................................... 269,700
5,400 Gartner Group, Inc., Class A*...................................... 176,850
10,500 Gaylord Entertainment Co., Class A................................. 284,813
9,900 GenCorp, Inc....................................................... 105,188
55,600 General Motors Corp., Class E (C).................................. 2,529,800
18,000 General Motors Corp., Class H...................................... 738,000
5,700 Gibson Greetings, Inc.............................................. 81,225
5,250 Goody's Family Clothing, Inc....................................... 73,500
3,410 Grand Casinos, Inc.*............................................... 138,531
600 Grey Advertising, Inc.............................................. 118,200
8,200 GTECH Holdings Corp.*.............................................. 247,025
5,700 Hanover Direct, Inc.*.............................................. 11,044
21,200 Harley-Davidson, Inc............................................... 516,750
9,990 Healthcare Compare Corp.*.......................................... 387,113
14,800 Hechinger Co., Class A............................................. 66,600
12,600 Heilig-Meyers Co................................................... 292,950
3,300 Hollywood Park, Inc.*.............................................. 40,425
3,800 Houghton Mifflin Co................................................ 176,700
1,200 Hovnanian Enterprises Inc., Class A*............................... 8,850
</TABLE>
See Notes to Financial Statements.
25
<PAGE>
-----------
Galaxy Small Company Index Fund
Fund II PORTFOLIO OF INVESTMENTS (continued)
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
CONSUMER CYCLICAL (CONTINUED)
6,900 Huffy Corp......................................................... $ 78,488
1,800 In Focus Systems, Inc.*............................................ 44,325
12,900 Infinity Broadcasting Corp., Class A*.............................. 422,475
1,900 Integrated Health Services, Inc.................................... 53,675
9,300 Intelligent Electronics, Inc....................................... 79,050
4,400 Juno Lighting, Inc................................................. 67,100
7,750 Kelly Services, Inc., Class A...................................... 207,313
3,000 Kinder Care Learning Centers*...................................... 40,500
19,800 Kinetic Concepts, Inc.............................................. 230,175
3,900 La-Z-Boy Chair Co.................................................. 116,513
5,300 Lafarge Corp....................................................... 97,388
18,100 Lear Seating Corp.*................................................ 531,688
5,400 Lee Enterprises, Inc............................................... 234,225
6,900 LIN Broadcasting Corp.*............................................ 892,688
20,900 Manpower, Inc...................................................... 606,100
7,526 Marvel Entertainment Group, Inc.*.................................. 116,653
2,683 Maybelline, Inc.................................................... 63,721
4,400 Medaphis Corp.*.................................................... 123,200
1,800 Medusa Corp........................................................ 50,850
1,150 Men's Wearhouse, Inc.*............................................. 41,400
7,300 Miller (Herman), Inc............................................... 198,925
5,000 Modine Manufacturing Co............................................ 142,500
10,700 Multimedia, Inc.*.................................................. 465,450
10,000 Musicland Stores Corp.*............................................ 85,000
10,793 Myers Industries, Inc.............................................. 164,593
1,900 National Auto Credit, Inc.*........................................ 36,575
6,500 National Computer Systems, Inc..................................... 139,750
14,340 NovaCare, Inc.*.................................................... 107,550
7,237 Olsten Corp........................................................ 281,338
7,800 Omnicom Group, Inc................................................. 508,950
10,720 OrNda Healthcorp*.................................................. 227,800
1,800 Oshkosh Truck Corp., Class B....................................... 27,450
7,600 Payless Cashways, Inc.*............................................ 40,850
7,050 PETsMART, Inc.*.................................................... 237,938
1,300 Pharmaceutical Marketing Services, Inc*............................ 14,950
3,700 PHH Corp........................................................... 166,500
4,300 Pinkertons, Inc.*.................................................. 86,000
1,500 Playboy Enterprises Inc., Class B*................................. 12,563
6,900 Players International, Inc.*....................................... 99,188
3,900 President Riverboat Casinos, Inc.*................................. 15,600
4,100 Primadonna Resorts, Inc.*.......................................... 62,525
9,800 QUALCOMM, Inc.*.................................................... 449,575
2,700 REN Corp-USA*...................................................... 53,663
1,400 Republic Gypsum Co................................................. 16,625
6,300 Rio Hotel & Casino, Inc.*.......................................... 81,900
1,600 Robert Half International, Inc.*................................... 54,600
5,850 Rollins, Inc....................................................... 143,325
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
CONSUMER CYCLICAL (CONTINUED)
6,600 Ross Stores, Inc................................................... $ 103,950
7,000 Ruddick Corp....................................................... 189,000
15,900 Safeway, Inc.*..................................................... 663,825
2,800 Scholastic Corp.*.................................................. 175,700
8,562 Schulman (A.), Inc................................................. 214,050
19,200 Shaw Industries, Inc............................................... 283,200
1,000 Smith (A.O.) Corp.................................................. 25,875
8,600 Smith's Food & Drug Centers, Inc., Class B......................... 174,150
4,900 Sodak Gaming, Inc.*................................................ 101,675
3,400 Sotheby's Holdings, Inc., Class A.................................. 47,600
7,700 Southdown, Inc.*................................................... 135,713
7,350 Spartan Motors, Inc................................................ 79,013
5,700 Spelling Entertainment Group, Inc.*................................ 75,525
2,800 Standard-Pacific Corp.............................................. 19,600
12,825 Staples, Inc.*..................................................... 362,306
5,850 Stewart Enterprises, Inc., Class A................................. 212,063
11,756 Sun Healthcare Group, Inc.*........................................ 151,359
2,800 Sun Television & Appliances, Inc................................... 17,150
4,600 Superior Industries International, Inc............................. 123,625
8,400 TBC Corp.*......................................................... 80,850
500 Today's Man, Inc.*................................................. 4,625
2,500 U S Home Corp.*.................................................... 62,500
9,900 USG Corp.*......................................................... 277,200
2,400 Walbro Corp........................................................ 48,000
1,600 Washington Post Co., Class B....................................... 497,600
4,600 Weis Markets, Inc.................................................. 127,650
7,500 Western Publishing Group, Inc.*.................................... 95,625
10,600 Westwood One, Inc.*................................................ 190,800
3,500 Winnebago Industries, Inc.......................................... 28,000
------------
27,428,124
------------
BASIC MATERIALS - 5.49%
4,200 Acme Metals, Inc.*................................................. 72,450
3,600 Actel Corp.*....................................................... 63,450
8,100 Allegheny Ludlum Corp.............................................. 165,038
300 Alpharma, Inc...................................................... 7,013
1,900 Amcol International Corp........................................... 33,013
800 Armor All Products Corp............................................ 13,700
300 Ashland Coal, Inc.................................................. 9,038
700 Astec Industries, Inc.*............................................ 7,875
8,200 Betz Laboratories, Inc............................................. 335,175
3,300 Birmingham Steel Corp.............................................. 57,750
10,500 Bowater, Inc....................................................... 489,563
6,700 Brush Wellman, Inc................................................. 123,950
5,700 Calgon Carbon Corp................................................. 66,975
4,300 CalMat Co.......................................................... 77,400
</TABLE>
See Notes to Financial Statements.
26
<PAGE>
-----------
Galaxy Small Company Index Fund
Fund II PORTFOLIO OF INVESTMENTS (continued)
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
BASIC MATERIALS (CONTINUED)
7,050 Castle (A.M.) & Co................................................. $ 156,863
1,000 Chesapeake Corp.................................................... 36,125
5,900 Consolidated Papers, Inc........................................... 329,663
10,900 Crompton & Knowles Corp............................................ 162,138
5,800 Dexter Corp........................................................ 147,900
22,291 Ethyl Corp......................................................... 247,987
2,500 Gaylord Container Corp., Class A*.................................. 23,594
6,900 Geneva Steel Co., Class A*......................................... 54,338
8,200 Georgia Gulf Corp.................................................. 282,900
6,200 Glatfelter (P.H.) Co............................................... 139,500
7,300 Handy & Harman..................................................... 109,500
7,050 Hanna (M.A.) Co.................................................... 185,944
7,400 Harsco Corp........................................................ 411,625
12,500 Horsehead Resource Development, Inc.*.............................. 67,383
3,300 Huntco, Inc., Class A.............................................. 49,913
5,100 IMC Global, Inc.................................................... 323,213
12,500 Intermet Corp.*.................................................... 140,625
3,300 International Aluminum Corp........................................ 104,775
27,300 International Game Technology...................................... 365,138
8,700 Jefferson Smurfit Corp.*........................................... 132,675
7,800 Justin Industries, Inc............................................. 85,800
3,800 Kennametal, Inc.................................................... 137,750
1,800 Lilly Industries, Inc., Class A.................................... 22,725
6,400 Loctite Corp....................................................... 309,600
11,000 Longview Fibre Co.................................................. 167,750
22,000 LTV Corp.*......................................................... 308,000
2,100 Lukens, Inc........................................................ 61,163
11,500 Lyondell Petrochemical Co.......................................... 297,563
5,000 Manville Corp.*.................................................... 65,625
2,800 Maxxam, Inc.*...................................................... 137,550
3,900 Medco Research, Inc.*.............................................. 49,238
7,400 Minerals Technologies, Inc......................................... 278,425
3,600 Mississippi Chemical Corp.......................................... 75,600
1,200 Mueller Industries, Inc.*.......................................... 62,250
6,000 Mycogen Corp.*..................................................... 82,500
11,700 Northwestern Steel & Wire Co.*..................................... 102,375
14,100 O'Sullivan Corp.................................................... 167,438
4,300 Olin Corp.......................................................... 295,625
9,500 OM Group, Inc...................................................... 288,563
9,700 Omega Environmental, Inc.*......................................... 35,769
5,500 Oregon Steel Mills, Inc............................................ 88,000
34,100 Owens-Illinois, Inc.*.............................................. 430,513
4,650 Pentair, Inc....................................................... 209,250
7,400 Platinum Technology, Inc.*......................................... 153,550
6,300 Quanex Corp........................................................ 136,238
3,000 Rayonier, Inc...................................................... 117,375
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
BASIC MATERIALS (CONTINUED)
11,900 Rhone-Poulenc Rorer, Inc........................................... $ 541,450
12,675 RPM, Inc........................................................... 251,916
6,000 Scotts Co., Class A*............................................... 132,750
4,600 Sealed Air Corp.*.................................................. 253,575
800 Sequa Corp., Class A*.............................................. 21,400
11,900 Shorewood Packaging Corp.*......................................... 206,763
8,800 Solectron Corp.*................................................... 347,600
26,670 Sonoco Products Co................................................. 740,093
3,000 St. Joe Paper Co................................................... 190,875
4,900 Telxon Corp........................................................ 116,988
1,300 Tencor Instruments*................................................ 57,525
23,400 Terra Industries, Inc.............................................. 333,450
500 Texas Industries, Inc.............................................. 26,375
8,000 Thiokol Corp....................................................... 286,000
500 TriMas Corp........................................................ 10,375
1,000 Valspar Corp....................................................... 38,250
2,000 Vigoro Corp........................................................ 84,500
4,301 Wausau Paper Mills Co.............................................. 104,299
17,500 WCI Steel, Inc.*................................................... 89,688
6,200 Wellman, Inc....................................................... 151,900
6,500 WHX Corp.*......................................................... 74,750
12,600 Willamette Industries, Inc......................................... 841,050
10,000 Witco Corp......................................................... 351,250
9,000 Wolverine Tube, Inc.*.............................................. 340,875
17,300 Zeigler Coal Holding Co............................................ 203,275
------------
14,957,396
------------
CAPITAL GOODS - 4.20%
16,800 ADC Telecommunications, Inc.*...................................... 764,400
3,450 AGCO Corp.......................................................... 156,975
5,100 Air & Water Technologies Corp., Class A*........................... 27,413
4,600 Alliant Techsystems, Inc.*......................................... 216,200
2,800 Allied Products Corp............................................... 59,850
7,400 Allwaste, Inc.*.................................................... 37,925
4,200 American Management Systems, Inc.*................................. 112,350
12,800 Ametek, Inc........................................................ 219,200
7,600 AMSCO International, Inc.*......................................... 151,050
13,800 AMTROL, Inc........................................................ 224,250
6,000 Applied Power, Inc., Class A....................................... 192,000
7,400 AptarGroup, Inc.................................................... 245,125
8,550 BancTec, Inc.*..................................................... 183,825
5,700 Bearings, Inc...................................................... 193,088
1,700 Brenco, Inc........................................................ 19,125
2,300 Checkpoint Systems, Inc.*.......................................... 60,663
4,100 Coltec Industries, Inc.*........................................... 49,200
</TABLE>
See Notes to Financial Statements.
27
<PAGE>
-----------
Galaxy Small Company Index Fund
Fund II PORTFOLIO OF INVESTMENTS (continued)
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
CAPITAL GOODS (CONTINUED)
8,550 Commercial Intertech Corp.......................................... $ 163,519
6,666 Commercial Metals Co............................................... 179,982
300 Corrections Corp. of America*...................................... 14,438
600 Curtiss-Wright Corp................................................ 26,550
1,100 Daniel Industries, Inc............................................. 16,363
3,700 Dentsply International, Inc........................................ 127,650
6,975 Diebold, Inc....................................................... 323,466
1,900 Digital Microwave Corp.*........................................... 23,513
4,100 Dionex Corp.*...................................................... 214,225
7,200 Duriron Co., Inc................................................... 210,600
12,487 Electro Rent Corp.*................................................ 218,523
6,700 Federal-Mogul Corp................................................. 128,138
4,100 GATX Corp.......................................................... 212,175
8,500 Gentex Corp.*...................................................... 204,000
6,000 Goulds Pumps, Inc.................................................. 138,000
2,798 Healthdyne Technologies, Inc.*..................................... 38,123
7,451 Hubbell, Inc., Class B............................................. 436,815
900 IDEX Corp.......................................................... 32,175
9,200 IMCO Recycling, Inc................................................ 208,150
1,700 Imo Industries, Inc.*.............................................. 15,725
5,700 INDRESCO, Inc.*.................................................... 101,888
6,600 Kasler Holding Co.*................................................ 40,425
2,800 KEMET Corp.*....................................................... 95,900
6,100 Keystone International, Inc........................................ 131,150
7,014 Litton Industries, Inc.*........................................... 305,109
10,800 Martech USA Inc. (B)............................................... 0
7,000 MascoTech, Inc..................................................... 78,750
29,000 Maxtor Corp.*...................................................... 126,875
1,400 Mid-American Waste Systems, Inc.*.................................. 7,175
3,500 Molten Metal Technology, Inc.*..................................... 113,313
2,600 Nordson Corp....................................................... 152,750
2,100 Nortek, Inc.*...................................................... 18,375
2,000 Orbital Sciences Corp.*............................................ 32,500
3,900 Pittway Corp., Class A............................................. 242,775
8,709 Raymond Corp.*..................................................... 167,648
5,000 Regal Beloit Corp.................................................. 93,125
1,400 Roper Industries, Inc.............................................. 54,250
1,900 Silicon Valley Group, Inc.*........................................ 73,388
9,900 Simpson Industries, Inc............................................ 97,763
4,800 Starrett (L.S.) Co., Class A....................................... 108,600
7,700 Stewart & Stevenson Services, Inc.................................. 248,325
10,600 Sundstrand Corp.................................................... 686,350
400 Teleflex, Inc...................................................... 16,200
13,050 Thermo Electron Corp.*............................................. 605,194
7,700 Trinity Industries, Inc............................................ 238,700
5,416 U.S.A. Waste Services, Inc.*....................................... 105,612
8,600 Varian Associates, Inc............................................. 455,800
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
CAPITAL GOODS (CONTINUED)
8,500 Vulcan Materials Co................................................ $ 450,500
5,400 Watts Industries, Inc., Class A.................................... 134,325
6,600 Wyman-Gordon Co.*.................................................. 91,163
12,800 York International Corp............................................ 539,200
------------
11,457,897
------------
ENERGY - 3.48%
3,900 Albemarle Corp..................................................... 73,125
22,500 Anadarko Petroleum Corp............................................ 1,065,938
15,152 Apache Corp........................................................ 397,740
3,500 ARCO Chemical Co................................................... 170,625
300 Atmos Energy Corp.................................................. 5,813
2,800 Benton Oil & Gas Co.*.............................................. 31,150
8,700 Berry Petroleum Co., Class A....................................... 89,175
3,700 BJ Services Co.*................................................... 93,425
540 BJ Services Co. Warrants*.......................................... 2,970
9,200 Cabot Corp......................................................... 488,750
3,400 Cabot Oil & Gas Corp., Class A..................................... 46,325
9,360 California Energy Co., Inc.*....................................... 191,880
10,300 Devon Energy Corp.................................................. 225,313
7,000 Diamond Shamrock, Inc.............................................. 172,375
12,690 El Paso Natural Gas Co............................................. 348,975
3,100 Energy Ventures, Inc.*............................................. 72,075
9,000 Enron Oil & Gas Co................................................. 195,750
1,125 Ensco International, Inc.*......................................... 19,125
5,300 Enterra Corp.*..................................................... 116,600
200 FINA, Inc., Class A................................................ 9,675
9,000 Finova Group, Inc.................................................. 400,500
3,950 Fuller (H.B.) Co................................................... 124,425
1,300 Getty Petroleum Corp.*............................................. 17,550
22,200 Global Marine, Inc.*............................................... 158,175
2,800 Global Natural Resources, Inc.*.................................... 27,650
4,100 Hondo Oil & Gas Co.*............................................... 79,950
2,000 HS Resources, Inc.*................................................ 29,500
6,150 KN Energy, Inc..................................................... 167,588
1,800 KCS Energy, Inc.................................................... 25,875
1,400 Kelley Oil & Gas Corp.*............................................ 4,375
4,300 Lone Star Technologies, Inc.*...................................... 40,850
17,500 Marine Drilling Co., Inc.*......................................... 74,375
15,300 Mesa, Inc.*........................................................ 72,675
2,500 Mine Safety Appliances Co.......................................... 126,250
7,050 Mitchell Energy & Development Corp.,
Class A............................................................ 126,900
10,315 Murphy Oil Corp.................................................... 412,600
34,100 NGC Corp........................................................... 306,900
7,100 Noble Affiliates, Inc.............................................. 187,263
</TABLE>
See Notes to Financial Statements.
28
<PAGE>
-----------
Galaxy Small Company Index Fund
Fund II PORTFOLIO OF INVESTMENTS (continued)
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
ENERGY (CONTINUED)
7,800 Noble Drilling Corp.*.............................................. $ 60,450
900 Nuevo Energy Co.*.................................................. 20,250
4,100 Oceaneering International, Inc.*................................... 44,588
6,900 Parker & Parsley Petroleum Co...................................... 138,000
20,700 Parker Drilling Co.*............................................... 124,200
5,300 Pogo Producing Co.................................................. 120,575
4,600 Production Operators Corp.......................................... 141,450
9,700 Quaker State Corp.................................................. 141,863
11,300 Questar Corp....................................................... 363,013
6,000 Reading & Bates Corp.*............................................. 72,000
9,400 RPC, Inc.*......................................................... 74,025
8,300 Seagull Energy Corp.*.............................................. 168,075
8,100 Smith International, Inc.*......................................... 140,738
5,300 Snyder Oil Corp.................................................... 64,263
1,900 St. Mary Land and Exploration...................................... 27,075
880 Tejas Gas Corp.*................................................... 44,880
15,300 Tesoro Petroleum Corp.*............................................ 126,225
5,600 Texas Meridian Resources Corp.*.................................... 63,000
8,400 Tosco Corp......................................................... 289,800
9,100 Triton Energy Corp................................................. 440,213
1,700 Tuboscope Vetco International Corp.*............................... 9,988
9,900 Ultramar Corp...................................................... 235,125
10,200 Union Texas Petroleum Holdings, Inc................................ 186,150
5,400 Varco International, Inc.*......................................... 54,675
10,000 Weatherford International, Inc.*................................... 130,000
------------
9,480,826
------------
DURABLE GOODS - 1.93%
5,000 Acuson Corp.*...................................................... 66,875
1,300 Albany International Corp., Class A................................ 30,388
749 Alltrista Corp.*................................................... 14,231
15,600 Altera Corp.*...................................................... 973,050
6,500 Beckman Instruments, Inc........................................... 196,625
3,000 Borg-Warner Security Corp.*........................................ 25,875
7,400 Cintas Corp........................................................ 325,600
12,000 Electronic Arts, Inc.*............................................. 441,000
4,300 Empi, Inc.*........................................................ 84,925
12,800 Fastenal Co........................................................ 467,200
1,300 Figgie International, Inc., Class A*............................... 17,225
6,200 Genzyme Corp.- General Division*................................... 359,600
6,500 HON Industries, Inc................................................ 188,500
11,900 Mentor Graphics Corp.*............................................. 243,950
15,700 Midlantic Corp..................................................... 851,725
15,600 Nabors Industries, Inc.*........................................... 147,225
4,300 OEA, Inc........................................................... 140,825
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
DURABLE GOODS (CONTINUED)
5,100 Precision Castparts Corp........................................... $ 186,150
8,000 Read-Rite Corp.*................................................... 292,000
6,400 Sequent Computer Systems, Inc.*.................................... 127,200
5,200 Valassis Communications, Inc.*..................................... 78,000
------------
5,258,169
------------
TRANSPORTATION - 1.98%
4,100 Airborne Freight Corp.............................................. 100,450
13,500 Alexander & Baldwin, Inc........................................... 324,000
17,608 America West Airlines, Inc., Class B*.............................. 272,924
3,100 American Freightways Corp.*........................................ 46,500
6,600 American President Cos., Ltd....................................... 193,050
1,100 Arnold Industries, Inc............................................. 19,525
8,900 Atlantic Southeast Airlines, Inc................................... 208,038
10,000 Case Corp.......................................................... 367,500
5,900 Clinicom, Inc.*.................................................... 147,500
11,137 Comair Holdings, Inc............................................... 295,131
5,100 Continental Airlines, Class B*..................................... 186,788
800 Covenant Transport, Inc., Class A*................................. 11,750
3,869 Fritz Cos., Inc.*.................................................. 285,097
2,100 Greyhound Lines, Inc.*............................................. 8,925
6,000 Hunt (J.B.) Transport Services, Inc................................ 90,750
10,400 Illinois Central Corp.............................................. 406,900
1,200 Johnstown America Industries, Inc.*................................ 9,750
5,200 Kirby Corp.*....................................................... 80,600
9,100 Kysor Industrial Corp.............................................. 197,925
1,725 Lawyers Title Corp................................................. 25,659
800 Lo-Jack Corp.*..................................................... 13,200
900 M. S. Carriers, Inc.*.............................................. 14,400
6,300 Mesa Airlines, Inc.*............................................... 64,181
9,600 Offshore Logistics, Inc.*.......................................... 133,200
6,800 Overseas Shipholding Group, Inc.................................... 135,150
2,250 Rollins Truck Leasing Corp......................................... 23,906
16,000 Rural/Metro Corp.*................................................. 388,000
300 Sanifill, Inc.*.................................................... 9,825
7,000 Southern Pacific Rail Corp.*....................................... 169,750
2,600 Standard Products Co............................................... 45,500
13,700 Tidewater, Inc..................................................... 385,313
9,450 TNT Freightways Corp............................................... 178,369
3,300 Top Source Technologies, Inc.*..................................... 29,081
1,400 United Waste Systems, Inc.*........................................ 58,450
600 ValuJet Airlines, Inc.*............................................ 19,575
3,000 Wabash National Corp............................................... 106,125
1,600 Werner Enterprises, Inc............................................ 33,200
</TABLE>
See Notes to Financial Statements.
29
<PAGE>
-----------
Galaxy Small Company Index Fund
Fund II PORTFOLIO OF INVESTMENTS (continued)
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
TRANSPORTATION (CONTINUED)
2,600 Wisconsin Central Transportation Corp.*............................ $ 173,550
3,200 XTRA Corp.......................................................... 142,000
------------
5,401,537
------------
METALS AND MINING - 0.91%
1,700 Alumax, Inc.*...................................................... 57,375
13,300 Amax Gold, Inc.*................................................... 81,463
49,700 Battle Mountain Gold............................................... 490,788
3,200 Carpenter Technology Corp.......................................... 125,200
8,871 Coeur D'Alene Mines Corp........................................... 179,638
40,700 Freeport McMoRan, Inc.............................................. 228,938
15,132 Freeport- McMoRan Copper, Class A.................................. 387,758
760 Freeport-McMoRan Copper, Class B*.................................. 19,475
15,300 Hecla Mining Co.*.................................................. 185,513
11,400 Magma Copper Co.*.................................................. 213,750
4,900 Newmont Gold Co.................................................... 198,450
76,906 Sunshine Mining & Refining Co.*.................................... 144,199
6,600 Varlen Corp........................................................ 179,850
------------
2,492,397
------------
CONSUMER PRODUCTS - 0.49%
28,200 Readers Digest Association, Class A................................ 1,328,925
------------
CHEMICALS AND DRUGS - 0.31%
8,200 Ferro Corp......................................................... 203,975
19,900 Lubrizol Corp...................................................... 649,238
------------
853,213
------------
BUILDING AND CONSTRUCTION - 0.20%
10,600 CBI Industries, Inc................................................ 251,750
1,500 Chittenden Corp.................................................... 38,250
1,500 Envirosource, Inc.*................................................ 4,500
2,800 IWC Resources Corp................................................. 53,550
4,100 Stone & Webster, Inc............................................... 154,775
2,700 TJ International, Inc.............................................. 51,300
------------
554,125
------------
MISCELLANEOUS - 0.09%
5,100 Flightsafety International, Inc.................................... 233,963
1,200 Irvine Sensors Corp.*.............................................. 10,950
------------
244,913
------------
TOTAL COMMON STOCKS................................................ 259,815,339
(Cost $186,161,945) ------------
<CAPTION>
VALUE
PAR VALUE (NOTE 2)
--------- --------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATION - 0.15%
U.S. TREASURY BILL (A) - 0.15%
$ 400,000 5.51%, 12/14/95.................................................... $ 395,474
------------
TOTAL U.S. GOVERNMENT OBLIGATION................................... 395,474
(Cost $395,474) ------------
REPURCHASE AGREEMENT - 4.10%
11,174,688 Chase Securities, Inc.
6.00%, 10/02/95, Dated 9/29/95
Repurchase Price $11,180,275
(Collateralized by U.S. Treasury Note
9.13%, Due 1999, Total Par $10,045,000,
Market Value $11,401,075).......................................... 11,174,688
------------
TOTAL REPURCHASE AGREEMENT......................................... 11,174,688
(Cost $11,174,688) ------------
TOTAL INVESTMENTS - 99.56%.............................................................. 271,385,501
(Cost $197,732,107) ------------
NET OTHER ASSETS AND LIABILITIES - 0.44%................................................ 1,207,857
------------
NET ASSETS - 100.00%.................................................................... $272,593,358
============
</TABLE>
- ------------------------------
* Non-income producing security
REIT Real Estate Investment Trust
(A) Annualized yields to maturity (unaudited)
(B) Filed for bankruptcy
(C) Security has been deposited as initial margin on open futures contracts.
At September 30, 1995, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
NUMBER OF
CONTRACTS CURRENT
PURCHASED EXPIRATION OPENING MARKET
(SOLD) CONTRACT TYPE DATE POSITION VALUE
- --------- ------------- ---------- ------------ -----------
<S> <C> <C> <C> <C>
80 Midcap 12/95 $ 8,647,550 $ 8,712,000
19 Russell 2000 12/95 2,910,565 2,960,200
------------ -----------
$ 11,558,115 $11,672,200
============ ===========
</TABLE>
See Notes to Financial Statements.
30
<PAGE>
-----------
Galaxy Utility Index Fund
Fund II PORTFOLIO OF INVESTMENTS
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
COMMON STOCKS - 98.46%
UTILITIES - 72.90%
9,100 Allegheny Power Systems, Inc....................................... $ 232,050
14,000 ALLTEL Corp........................................................ 418,250
15,400 American Electric Power, Inc....................................... 560,175
1,300 American Water Works, Inc.......................................... 39,813
43,300 Ameritech Corp..................................................... 2,257,013
1,600 Atlanta Gas Light Co............................................... 61,800
5,500 Atlantic Energy, Inc............................................... 108,625
11,900 Baltimore Gas and Electric Co...................................... 307,913
34,600 Bell Atlantic Corp................................................. 2,123,575
39,300 BellSouth Corp..................................................... 2,873,813
3,700 Boston Edison Co................................................... 101,750
2,900 Brooklyn Union Gas Co.............................................. 71,413
12,600 Carolina Power and Light Co........................................ 423,675
11,000 Centerior Energy Corp.............................................. 119,625
15,900 Central and South West Corp........................................ 405,450
4,900 Cincinnati Bell, Inc............................................... 132,300
12,647 Cinergy Corp....................................................... 352,535
2,400 CIPSCO, Inc........................................................ 82,500
6,000 CMS Energy Corp.................................................... 157,500
3,400 Columbia Gas System, Inc.*......................................... 131,325
2,900 Comsat Corp., Series 1............................................. 65,250
19,200 Consolidated Edison Co., Inc....................................... 583,200
6,700 Consolidated Natural Gas Co........................................ 270,513
4,700 Delmarva Power and Light Co........................................ 107,513
11,900 Detroit Edison Co.................................................. 383,775
13,800 Dominion Resources, Inc............................................ 519,225
7,400 DPL, Inc........................................................... 171,125
6,100 DQE, Inc........................................................... 161,650
16,300 Duke Power Co...................................................... 707,013
5,600 ENSERCH Corp....................................................... 92,400
18,683 Entergy Corp....................................................... 488,093
7,900 Florida Progress Corp.............................................. 255,763
14,400 FPL Group, Inc..................................................... 588,600
12,100 Frontier Corp...................................................... 322,163
9,400 General Public Utilities Corp...................................... 292,575
3,100 Glenayre Technologies, Inc.*....................................... 223,200
75,500 GTE Corp........................................................... 2,963,375
1,700 Hawaiian Electric Industries, Inc.................................. 64,600
9,300 Houston Industries, Inc............................................ 410,363
3,000 Idaho Power Co..................................................... 83,250
6,300 Illinova Corp...................................................... 170,888
2,700 IPALCO Enterprises, Inc............................................ 96,863
5,100 Kansas City Power and Light Co..................................... 120,488
3,600 KU Energy Corp..................................................... 104,400
2,400 LCI Intl, Inc.*.................................................... 94,200
2,800 L G and E Energy Corp.............................................. 112,350
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
UTILITIES (CONTINUED)
9,300 Long Island Lighting Co............................................ $ 160,425
3,800 MCN Corp........................................................... 75,050
1,600 MFS Communications Co., Inc.*...................................... 70,000
3,900 MidAmerican Energy Co.............................................. 59,963
1,900 Minnesota Power and Light Co....................................... 52,963
3,600 Montana Power Co................................................... 83,250
2,400 National Fuel Gas Co. of New Jersey................................ 69,000
4,500 Nevada Power Co.................................................... 100,125
5,500 New England Electric Systems....................................... 203,500
5,700 New York State Electric and Gas Corp............................... 149,625
7,300 NEXTEL Communications, Inc., Class A*.............................. 123,188
11,700 Niagara Mohawk Power Corp.......................................... 153,563
3,200 NICOR, Inc......................................................... 87,200
4,700 NIPSCO Industries, Inc............................................. 163,913
8,900 Noram Energy Corp.................................................. 70,088
8,900 Northeast Utilities................................................ 216,938
4,600 Northern States Power Co........................................... 208,725
33,200 NYNEX Corp......................................................... 1,585,300
12,500 Ohio Edison Co..................................................... 284,375
3,200 Oklahoma Gas and Electric Co....................................... 120,400
10,000 Pennsylvania Power and Light Co.................................... 233,750
6,800 Pacific Enterprises................................................ 170,850
34,900 Pacific Gas and Electric Co........................................ 1,042,638
34,600 Pacific Telesis Group.............................................. 1,063,950
20,200 PacifiCorp......................................................... 383,800
4,300 Paging Network, Inc.*.............................................. 206,400
12,200 Panhandle Eastern Corp............................................. 332,450
17,900 PECO Energy Corp................................................... 512,388
2,100 People's Energy Corp............................................... 57,750
6,800 Pinnacle West Capital Corp......................................... 178,500
3,700 Portland General Corp.............................................. 94,813
9,600 Potomac Electric Power Co.......................................... 232,800
5,100 Public Service Co. of Colorado..................................... 174,675
20,000 Public Service Enterprise Group, Inc............................... 595,000
3,900 Puget Sound Power and Light Co..................................... 90,675
2,700 Rochester Gas and Electric Corp.................................... 63,788
7,500 San Diego Gas and Electric Co...................................... 173,438
48,400 SBC Communications, Inc............................................ 2,662,000
5,800 SCANA Corp......................................................... 139,200
34,900 SCE Corp........................................................... 619,475
7,100 Sonat, Inc......................................................... 227,200
52,700 Southern Co........................................................ 1,245,038
4,100 Southern New England
Telecommunications Corp., Inc...................................... 145,038
2,400 Southwestern Public Service Co..................................... 78,300
9,600 TECO Energy, Inc................................................... 224,400
3,900 Telephone and Data Systems, Inc.................................... 163,800
16,300 Texas Utilities Co................................................. 568,463
</TABLE>
See Notes to Financial Statements.
31
<PAGE>
-----------
Galaxy Utility Index Fund
Fund II PORTFOLIO OF INVESTMENTS (continued)
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
UTILITIES (CONTINUED)
17,400 Unicom Corp........................................................ $ 526,350
8,300 Union Electric Co.................................................. 310,213
3,200 US Cellular Corp.*................................................. 116,800
36,700 U S West, Inc...................................................... 1,729,488
3,300 UtiliCorp United, Inc.............................................. 92,813
2,300 Washington Gas Light Co............................................ 45,713
3,600 Washington Water Power Co.......................................... 58,050
4,900 Western Resources, Inc............................................. 159,863
8,200 Williams Cos., Inc................................................. 319,800
9,200 Wisconsin Energy Corp.............................................. 259,900
13,989 Worldcom, Inc.*.................................................... 449,397
2,800 WPL Holdings, Inc.................................................. 81,900
------------
40,282,392
------------
TECHNOLOGY - 23.80%
38,800 AirTouch Communications, Inc.*..................................... 1,188,250
126,000 American Telephone and Telegraph Co................................ 8,284,481
1,500 Ascend Communications, Inc.*....................................... 120,000
2,600 Century Telephone Enterprises, Inc................................. 78,975
100 Cox Communications, Inc., Class A*................................. 2,025
54,200 MCI Communications Corp............................................ 1,412,588
4,200 Mobile Telecommunications
Technologies Corp.*................................................ 129,675
27,098 Sprint Corp........................................................ 948,430
53,300 Tele-Communications, Inc., Class A*................................ 932,750
2,100 Vanguard Cellular Systems, Class A................................. 53,813
------------
13,150,987
------------
CONSUMER CYCLICAL - 1.47%
1,300 Cablevision Systems Corp., Class A*................................ 77,513
19,800 Comcast Corp., Class A Special..................................... 396,000
1,600 LIN Broadcasting Corp.*............................................ 207,000
2,900 QUALCOMM, Inc.*.................................................... 133,038
------------
813,551
------------
ENERGY - 0.29%
8,000 NGC Corp........................................................... 72,000
2,700 Questar Corp....................................................... 86,738
------------
158,738
------------
TOTAL COMMON STOCKS................................................ 54,405,668
(Cost $51,823,944) ------------
<CAPTION>
VALUE
PAR VALUE (NOTE 2)
--------- --------
<C> <S> <C>
REPURCHASE AGREEMENT - 1.18%
$ 649,027 Chase Securities, Inc.
6.00%, 10/02/95, Dated 09/29/95
Repurchase Price $649,352
(Collaterized by U.S. Treasury Note
9.13%, Due 1999, Total Par $585,000,
Market Value $663,975)............................................. $ 649,027
------------
TOTAL REPURCHASE AGREEMENT......................................... 649,027
(Cost $649,027) ------------
TOTAL INVESTMENTS - 99.64%.............................................................. 55,054,695
(Cost $52,472,971) ------------
NET OTHER ASSETS AND LIABILITIES - 0.36%................................................ 200,680
------------
NET ASSETS - 100.00%.................................................................... $ 55,255,375
============
</TABLE>
- ------------------------------
* Non-income producing security.
See Notes to Financial Statements.
32
<PAGE>
-----------
Galaxy U.S. Treasury Index Fund
Fund II PORTFOLIO OF INVESTMENTS
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
PAR VALUE (NOTE 2)
--------- --------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS - 96.77%
U.S. TREASURY NOTES - 72.91%
$ 4,836,000 6.88%, 10/31/96.................................................... $ 4,892,383
4,036,000 7.25%, 11/15/96.................................................... 4,099,886
9,052,000 8.63%, 08/15/97.................................................... 9,492,913
6,355,000 5.63%, 08/31/97.................................................... 6,332,433
2,441,000 6.00%, 11/30/97.................................................... 2,448,589
8,238,000 7.88%, 04/15/98.................................................... 8,619,667
1,752,000 9.25%, 08/15/98.................................................... 1,904,632
2,000,000 4.75%, 09/30/98.................................................... 1,937,158
1,000,000 7.13%, 10/15/98.................................................... 1,033,559
4,000,000 5.13%, 12/31/98.................................................... 3,905,760
3,500,000 5.00%, 01/31/99.................................................... 3,402,627
1,750,000 8.88%, 02/15/99.................................................... 1,904,541
2,800,000 5.50%, 02/28/99.................................................... 2,762,340
3,100,000 7.00%, 04/15/99.................................................... 3,201,305
3,000,000 7.75%, 01/31/00.................................................... 3,196,047
3,353,000 8.75%, 08/15/00.................................................... 3,733,998
2,250,000 7.50%, 11/15/01.................................................... 2,411,008
2,800,000 7.50%, 05/15/02.................................................... 3,013,749
3,100,000 6.38%, 08/15/02.................................................... 3,148,701
1,800,000 6.25%, 02/15/03.................................................... 1,811,428
3,000,000 5.75%, 08/15/03.................................................... 2,922,117
3,600,000 7.25%, 05/15/04.................................................... 3,844,152
4,250,000 7.88%, 11/15/04.................................................... 4,730,373
------------
84,749,366
------------
U.S. TREASURY BONDS - 23.86%
400,000 10.75%, 08/15/05................................................... 529,988
3,730,000 11.75%, 11/15/14................................................... 5,521,034
2,100,000 7.25%, 05/15/16.................................................... 2,247,441
9,464,000 8.88%, 08/15/17.................................................... 11,884,692
4,821,000 8.50%, 02/15/20.................................................... 5,882,440
1,500,000 7.50%, 11/15/24.................................................... 1,669,290
------------
27,734,885
------------
TOTAL U.S. GOVERNMENT OBLIGATIONS.................................. 112,484,251
(Cost $108,886,634) ------------
<CAPTION>
VALUE
PAR VALUE (NOTE 2)
--------- --------
<C> <S> <C>
REPURCHASE AGREEMENT - 1.56%
$ 1,807,146 Chase Securities, Inc.
6.00%, 10/02/95, Dated 9/29/95
Repurchase Price $1,808,050
(Collateralized by U.S. Treasury Bond,
10.75%, Due 2005, Total Par $1,595,000,
Market Value $1,810,325)........................................... $ 1,807,146
------------
TOTAL REPURCHASE AGREEMENT......................................... 1,807,146
(Cost $1,807,146) ------------
TOTAL INVESTMENTS - 98.33%.............................................................. 114,291,397
(Cost $110,693,780) ------------
NET OTHER ASSETS AND LIABILITIES - 1.67%................................................ 1,939,961
------------
NET ASSETS - 100.00%.................................................................... $116,231,358
============
</TABLE>
See Notes to Financial Statements.
33
<PAGE>
-----------
Galaxy Municipal Bond Fund
Fund II PORTFOLIO OF INVESTMENTS
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
PAR VALUE (NOTE 2)
--------- --------
<C> <S> <C>
MUNICIPAL BONDS - 97.20%
ALABAMA - 4.29%
$ 980,000 Auburn University Revenues, Athletic, Series 1993
5.20%, 04/01/04
Insured: MBIA........................................................ $ 982,450
------------
FLORIDA - 4.51%
1,000,000 Florida State Board of Education Capital Outlay
Public Education, Series A, GO
5.70%, 06/01/08...................................................... 1,032,500
------------
GEORGIA - 4.50%
1,000,000 Atlanta Airport Facilities Revenue, Series A
5.20%, 01/01/02
Insured: AMBAC....................................................... 1,028,750
------------
ILLINOIS - 11.36%
500,000 Chicago Metropolitan Water Reclamation District, GO
Greater Chicago, Series 1993
5.10%, 12/01/03...................................................... 510,625
1,000,000 Illinois Health Facilities Authority Revenue
University of Chicago Hospitals, Series 1993 A
5.25%, 08/15/03
Insured: MBIA........................................................ 1,025,000
500,000 Illinois State Sales Tax Revenue, Series V
6.00%, 06/15/08...................................................... 526,875
500,000 Kane County Community School District Number 304
Geneva, Series 1992
6.00%, 06/01/04
Insured: FGIC........................................................ 536,875
------------
2,599,375
------------
LOUISIANA - 2.17%
500,000 Jefferson Parish Hospital Revenue
Service District 1, Series 1993
4.76%, 01/01/02
Insured: FGIC........................................................ 496,875
------------
MASSACHUSETTS - 8.05%
1,000,000 Massachusetts State Consolidated Loan, Series B, GO
5.70%, 08/01/07
Insured: FGIC........................................................ 1,042,500
800,000 Springfield, Series 1993 B, GO
5.05%, 01/15/04
Insured: MBIA........................................................ 799,000
------------
1,841,500
------------
</TABLE>
See Notes to Financial Statements.
34
<PAGE>
-----------
Galaxy Municipal Bond Fund
Fund II PORTFOLIO OF INVESTMENTS (continued)
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
PAR VALUE (NOTE 2)
--------- --------
<C> <S> <C>
MISSOURI - 9.20%
$1,000,000 Sikeston Electric Revenue
6.00%, 06/01/04
Insured: MBIA........................................................ $ 1,076,250
1,000,000 St. Louis Water Revenue
5.30%, 07/01/99
Insured: FGIC........................................................ 1,030,000
------------
2,106,250
------------
NEVADA - 9.44%
1,000,000 Clark County School District Revenue, Series 1993 B, GO
5.00%, 05/01/02
Insured: FGIC........................................................ 1,017,500
600,000 Henderson, Water Revenue, Series 1993 A, GO
5.65%, 12/01/03
Insured: AMBAC....................................................... 629,250
500,000 Las Vegas Valley Water District, GO
5.40%, 09/01/04
Insured: AMBAC....................................................... 513,125
------------
2,159,875
------------
NEW HAMPSHIRE - 5.51%
750,000 New Hampshire HEFA
Mary Hitchcock Memorial Hospital, Series 1993 A
5.00%, 08/15/03
Insured: FGIC........................................................ 750,000
500,000 New Hampshire Municipal Bond Bank, Series 1993 A
5.25%, 11/15/03...................................................... 510,000
------------
1,260,000
------------
NEW JERSEY - 4.56%
1,000,000 New Jersey Health Care Facilities Financing Authority
Dover General Hospital and Medical Center
5.60%, 07/01/02
Insured: MBIA........................................................ 1,043,750
------------
NEW YORK - 6.65%
500,000 Battery Park City Authority Revenue, Series 1993 B
4.70%, 11/01/00...................................................... 500,625
500,000 New York City Municipal Water Finance Authority
Water and Sewer System Revenue, Series 1993 B
4.75%, 06/15/01...................................................... 503,125
500,000 New York Environmental Facilities Corp., PCR
5.75%, 06/15/09...................................................... 517,500
------------
1,521,250
------------
PENNSYLVANIA - 4.46%
1,000,000 Pennsylvania State IDA, Economic Development
5.00%, 01/01/00
Insured: AMBAC....................................................... 1,021,250
------------
</TABLE>
See Notes to Financial Statements.
35
<PAGE>
-----------
Galaxy Municipal Bond Fund
Fund II PORTFOLIO OF INVESTMENTS (continued)
----------- September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
VALUE
PAR VALUE (NOTE 2)
--------- --------
<C> <S> <C>
TEXAS - 4.52%
$ 500,000 Carrollton Farmers Branch Independent School District, Series 1993, GO
5.10%, 02/15/04...................................................... $ 503,750
500,000 Houston Water and Sewer System Revenue, Jr. Lien, Series 1992 A
5.75%, 12/01/03
Insured: MBIA........................................................ 530,625
------------
1,034,375
------------
UTAH - 2.35%
525,000 Utah Association Municipal Power System Revenue
Central - St. George Project, Series 1993
5.15%, 12/01/03
Insured: AMBAC....................................................... 536,813
------------
VIRGINIA - 4.50%
1,000,000 Virginia State Transportation Board
Transportation Contract Revenue, Route 28 Project
6.00%, 04/01/10...................................................... 1,030,000
------------
WASHINGTON - 6.71%
1,000,000 Seattle Municipal Light and Power Revenue, Series B
5.75%, 08/01/07...................................................... 1,033,750
500,000 Washington State Public Power Supply System
Nuclear Project Number 1 Revenue, Series 1993 B
5.10%, 07/01/04
Insured: MBIA........................................................ 501,250
------------
1,535,000
------------
WISCONSIN - 4.42%
1,000,000 Milwaukee Corporate Purpose, Series A
5.50%, 06/15/08...................................................... 1,011,250
------------
TOTAL INVESTMENTS - 97.20%............................................................. 22,241,263
------------
(Cost $21,636,702)
NET OTHER ASSETS AND LIABILITIES - 2.80%............................................... 641,580
------------
NET ASSETS - 100.00%................................................................... $ 22,882,843
============
</TABLE>
- ---------------------------------------------------
AMBAC American Municipal Bond Assurance Corp.
FGIC Financial Guaranty Insurance Corp.
GO General Obligation
HEFA Health and Educational Facilities Authority
IDA Industrial Development Authority
MBIA Municipal Bond Insurance Association
PCR Pollution Control Revenue
See Notes to Financial Statements.
36
<PAGE>
-----------
Galaxy STATEMENTS OF ASSETS AND LIABILITIES
Fund II September 30, 1995 (unaudited)
-----------
<TABLE>
<CAPTION>
LARGE SMALL U.S.
COMPANY COMPANY UTILITY TREASURY MUNICIPAL
INDEX FUND INDEX FUND INDEX FUND INDEX FUND BOND FUND
------------ ------------ ----------- ------------ -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments (Note 2):
Investments at cost........................... $137,441,108 $186,557,419 $51,823,944 $108,886,634 $21,636,702
Repurchase Agreements......................... 2,893,069 11,174,688 649,027 1,807,146 --
Net unrealized appreciation (depreciation).... 51,405,164 73,653,394 2,581,724 3,597,617 604,561
------------ ------------ ----------- ------------ -----------
Total investments at value................. 191,739,341 271,385,501 55,054,695 114,291,397 22,241,263
Cash............................................. 9,358 191,939 13,650 47,500 330,135
Receivable for investments sold.................. -- 594,406 -- -- --
Receivable for shares sold....................... 323,570 344,200 44,658 126,247 10, 805
Interest and dividend receivables................ 379,927 342,013 187,481 1,934,482 333,567
------------ ------------ ----------- ------------ -----------
Total Assets............................... 192,452,196 272,858,059 55,300,484 116,399,626 22,915,770
------------ ------------ ----------- ------------ -----------
LIABILITIES:
Distributions payable............................ -- -- 116 96,179 7,401
Payable for shares repurchased................... 134,967 151,861 27,386 34,497 14,000
Advisory fee payable (Note 4).................... 15,550 22,210 4,402 9,398 4,800
Administration fee payable (Note 4).............. 46,652 66,630 13,205 28,194 6,726
Payable for daily variation margin
on futures contracts.......................... 5,500 24,000 -- -- --
------------ ------------ ----------- ------------ -----------
Total Liabilities ......................... 202,669 264,701 45,109 168,268 32,927
------------ ------------ ----------- ------------ -----------
NET ASSETS.......................................... $192,249,527 $272,593,358 $55,255,375 $116,231,358 $22,882,843
============ ============ =========== ============ ===========
NET ASSETS CONSIST OF:
Par value (Note 3)............................... $ 10,441 $ 12,873 $ 4,743 $ 11,223 $ 2,239
Paid-in capital in excess of par value........... 136,643,869 192,519,594 54,123,382 118,413,478 23,368,025
Undistributed (overdistributed) net
investment income............................. 154,322 3,056,313 90,538 (67,974) 21,592
Accumulated net realized gain (loss) on
investments sold and futures contracts........ 3,940,441 3,237,099 (1,545,012) (5,722,986) (1,113,574)
Net unrealized appreciation (depreciation)
of investments and futures contracts.......... 51,500,454 73,767,479 2,581,724 3,597,617 604,561
------------ ------------ ----------- ------------ -----------
TOTAL NET ASSETS.................................... $192,249,527 $272,593,358 $55,255,375 $116,231,358 $22,882,843
============ ============ =========== ============ ===========
SHARES OF BENEFICIAL INTEREST OUTSTANDING........... 10,441,406 12,873,123 4,742,623 11,222,910 2,239,074
NET ASSET VALUE,
offering and redemption price per share
(Net Assets/Shares Outstanding).................. $ 18.41 $ 21.18 $ 11.65 $ 10.36 $ 10.22
============ ============ =========== ============ ===========
</TABLE>
See Notes to Financial Statements.
37
<PAGE>
-----------
Galaxy STATEMENTS OF OPERATIONS
Fund II For the six months ended September 30, 1995
----------- (unaudited)
<TABLE>
<CAPTION>
LARGE SMALL U.S. MUNICIPAL
COMPANY COMPANY UTILITY TREASURY BOND
INDEX FUND INDEX FUND INDEX FUND INDEX FUND FUND
----------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest (Note 2)................................... $ 141,172 $ 267,210 $ 10,767 $3,802,931 $ 621,845
Dividends (Note 2).................................. 2,183,150 2,223,612 1,174,896 -- --
----------- ----------- ---------- ---------- ----------
Total investment income.......................... 2,324,322 2,490,822 1,185,663 3,802,931 621,845
----------- ----------- ---------- ---------- ----------
EXPENSES:
Investment advisory fee (Note 4).................... 80,702 118,098 24,812 51,343 29,734
Administration fee (Note 4)......................... 259,669 375,410 79,237 165,910 42,023
Trustees fees (Note 4).............................. 6,570 9,292 1,890 3,960 788
----------- ----------- ---------- ---------- ----------
Total Expenses................................... 346,941 502,800 105,939 221,213 72,545
----------- ----------- ---------- ---------- ----------
NET INVESTMENT INCOME.................................. 1,977,381 1,988,022 1,079,724 3,581,718 549,300
----------- ----------- ---------- ---------- ----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 2):
Net realized gain (loss) on investments sold........ 1,548,986 1,203,861 (450,150) (53,242) 21,287
Net realized gain (loss) on futures contracts....... 634,680 1,199,515 -- -- --
----------- ----------- ---------- ---------- ----------
Net realized gain (loss) on investments sold
and futures contracts......................... 2,183,666 2,403,376 (450,150) (53,242) 21,287
Net change in unrealized appreciation
(depreciation) on investments
and futures contracts............................ 24,369,395 41,415,562 9,231,128 4,808,475 646,869
----------- ----------- ---------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS.................................. 26,553,061 43,818,938 8,780,978 4,755,233 668,156
----------- ----------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS....................... $28,530,442 $45,806,960 $9,860,702 $8,336,951 $1,217,456
=========== =========== ========== ========== ==========
</TABLE>
See Notes to Financial Statements.
38
<PAGE>
-----------
Galaxy
Fund II STATEMENTS OF CHANGES IN NET ASSETS
-----------
<TABLE>
<CAPTION>
LARGE COMPANY SMALL COMPANY UTILITY
INDEX FUND INDEX FUND INDEX FUND
-------------------------- -------------------------- -------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED
1995 MARCH 31, 1995 MARCH 31, 1995 MARCH 31,
(UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED) 1995
------------ ------------ ------------ ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS AT BEGINNING OF PERIOD:............... $147,597,190 $143,827,623 $235,294,714 $255,346,570 $52,831,112 $ 68,444,762
------------ ------------ ------------ ------------ ----------- ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS:
Net investment income......................... 1,977,381 3,524,343 1,988,022 4,136,582 1,079,724 2,746,549
Net realized gain (loss) on investments sold
and futures contracts...................... 2,183,666 3,346,885 2,403,376 5,469,858 (450,150) (1,051,438)
Net change in unrealized appreciation
(depreciation) of investments
and futures contracts...................... 24,369,395 13,100,963 41,415,562 7,352,947 9,231,128 753,302
------------ ------------ ------------ ------------ ----------- ------------
Net increase (decrease) in net assets
resulting from operations.................. 28,530,442 19,972,191 45,806,960 16,959,387 9,860,702 2,448,413
------------ ------------ ------------ ------------ ----------- ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income......................... (1,892,242) (3,497,258) -- (4,172,587) (1,099,087) (2,658,065)
Net realized capital gains on investments..... -- (3,053,288) -- (10,375,944) -- (490,699)
Dividends in excess of net realized capital
gains on investments....................... -- -- -- -- -- (43,424)
------------ ------------ ------------ ------------ ----------- ------------
Total Dividends......................... (1,892,242) (6,550,546) -- (14,548,531) (1,099,087) (3,192,188)
------------ ------------ ------------ ------------ ----------- ------------
SHARE TRANSACTIONS:
Net proceeds from sales of shares............. 32,024,807 21,883,550 20,251,572 31,022,102 2,372,308 7,273,913
Issued to shareholders in reinvestment
of dividends............................... 1,708,629 6,276,842 -- 14,147,774 1,004,415 2,900,165
Costs of shares repurchased................... (15,719,299) (37,812,470) (28,759,888) (67,632,588) (9,714,075) (25,043,953)
------------ ------------ ------------ ------------ ----------- ------------
Net increase (decrease) from share
transactions............................ 18,014,137 (9,652,078) (8,508,316) (22,462,712) (6,337,352) (14,869,875)
------------ ------------ ------------ ------------ ----------- ------------
Net increase (decrease) in net assets...... 44,652,337 3,769,567 37,298,644 (20,051,856) 2,424,263 (15,613,650)
------------ ------------ ------------ ------------ ----------- ------------
NET ASSETS AT END OF PERIOD: (including line A).. $192,249,527 $147,597,190 $272,593,358 $235,294,714 $55,255,375 $ 52,831,112
============ ============ ============ ============ =========== ============
(A) Accumulated undistributed (overdistributed)
net investment income...................... $ 154,322 $ 69,183 $ 3,056,313 $ 1,068,291 $ 90,538 $ 109,901
============ ============ ============ ============ =========== ============
OTHER INFORMATION:
SHARE TRANSACTIONS:
Sold.......................................... 1,901,243 1,471,323 1,024,808 1,783,921 227,025 730,210
Issued to shareholders in reinvestment
of dividends............................... 96,830 428,648 -- 876,546 93,142 299,833
Repurchased................................... (920,359) (2,548,892) (1,505,533) (3,905,141) (926,406) (2,529,880)
------------ ------------ ------------ ------------ ----------- ------------
Net increase (decrease) in shares
outstanding............................. 1,077,714 (648,921) (480,725) (1,244,674) (606,239) (1,499,837)
============ ============ ============ ============ =========== ============
</TABLE>
See Notes to Financial Statements.
39
<PAGE>
-----------
Galaxy
Fund II STATEMENTS OF CHANGES IN NET ASSETS
-----------
<TABLE>
<CAPTION>
U.S. TREASURY INDEX FUND MUNICIPAL BOND FUND
------------------------------ -----------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
1995 YEAR ENDED 1995 YEAR ENDED
(UNAUDITED) MARCH 31, 1995 (UNAUDITED) MARCH 31, 1995
------------ -------------- ------------- --------------
<S> <C> <C> <C> <C>
NET ASSETS AT BEGINNING OF PERIOD:......................... $104,250,685 $138,225,244 $24,559,594 $ 33,352,444
------------ ------------ ----------- ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS:
Net investment income................................... 3,581,718 7,489,284 549,300 1,335,592
Net realized gain (loss) on investments sold............ (53,242) (3,631,305) 21,287 (1,071,810)
Net change in unrealized appreciation
(depreciation) of investments........................ 4,808,475 (227,559) 646,869 1,013,967
------------ ------------ ----------- ------------
Net increase (decrease) in net assets resulting
from operations...................................... 8,336,951 3,630,420 1,217,456 1,277,749
------------ ------------ ----------- ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income................................... (3,581,717) (7,582,470) (549,300) (1,326,592)
Dividends in excess of net investment income............ -- (73,790) -- --
Net realized capital gain on investments................ -- -- -- --
Dividends in excess of net realized capital
gains on investments................................. -- (1,789,194) -- --
Return of capital....................................... -- (55,162) -- --
------------ ------------ ----------- ------------
Total Dividends...................................... (3,581,717) (9,500,616) (549,300) (1,326,592)
------------ ------------ ----------- ------------
SHARE TRANSACTIONS:
Net proceeds from sales of shares....................... 15,747,230 12,236,048 1,006,266 3,245,583
Issued to shareholders in reinvestment
of dividends......................................... 3,042,751 8,472,368 495,166 1,209,050
Costs of shares repurchased............................. (11,564,542) (48,812,779) (3,846,339) (13,198,640)
------------ ------------ ----------- ------------
Net increase (decrease) from share
transactions...................................... 7,225,439 (28,104,363) (2,344,907) (8,744,007)
------------ ------------ ----------- ------------
Net increase (decrease) in net assets................ 11,980,673 (33,974,559) (1,676,751) (8,792,850)
------------ ------------ ----------- ------------
NET ASSETS AT END OF PERIOD: (including line A)............ $116,231,358 $104,250,685 $22,882,843 $ 24,559,594
============ ============ =========== ============
(A) Accumulated undistributed (overdistributed)
net investment income................................ $ (67,974) $ (67,975) $ 21,592 $ 21,592
============ ============ =========== ============
OTHER INFORMATION:
SHARE TRANSACTIONS:
Sold.................................................... 1,540,780 1,220,368 99,419 331,420
Issued to shareholders in reinvestment
of dividends....................................... 296,334 855,095 48,987 123,821
Repurchased............................................. (1,131,907) (4,880,675) (379,774) (1,355,956)
------------ ------------ ----------- ------------
Net increase (decrease) in shares outstanding...... 705,207 (2,805,212) (231,368) (900,715)
============ ============ =========== ============
</TABLE>
See Notes to Financial Statements.
40
<PAGE>
-----------
Galaxy Large Company Index Fund
Fund II FINANCIAL HIGHLIGHTS
----------- For a Share outstanding throughout each period
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEARS ENDED MARCH 31,
SEPTEMBER 30, 1995 ------------------------------------------------------------
(UNAUDITED) 1995 1994/(1)/ 1993/(1)/ 1992/(1)/ 1991/(1)(2)/
------------------ -------- -------- -------- -------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of period.......... $ 15.76 $ 14.36 $ 14.59 $ 13.04 $ 12.10 $ 10.00
-------- -------- -------- -------- -------- -------
Income from Investment Operations:
Net investment income...................... 0.19 0.37 0.36 0.34 0.31 0.15
Net realized and unrealized gain (loss)
on investments and futures contracts.... 2.65 1.73 (0.20) 1.55 0.95 2.10
-------- -------- -------- -------- -------- -------
Total from Investment Operations:.... 2.84 2.10 0.16 1.89 1.26 2.25
-------- -------- -------- -------- -------- -------
Less Dividends:
Dividends from net investment income....... (0.19) (0.37) (0.36) (0.34) (0.31) (0.15)
Dividends from net realized capital gains.. -- (0.33) (0.03) -- (0.01) --
-------- -------- -------- -------- -------- -------
Total Dividends:........................ (0.19) (0.70) (0.39) (0.34) (0.32) (0.15)
-------- -------- -------- -------- -------- -------
Net Increase (decrease) in net asset value.... 2.65 1.40 (0.23) 1.55 0.94 2.10
-------- -------- -------- -------- -------- -------
Net Asset Value, End of period................ $ 18.41 $ 15.76 $ 14.36 $ 14.59 $ 13.04 $ 12.10
======== ======== ======== ======== ======== =======
Total Return.................................. 18.05%** 15.07% 1.02% 14.68% 10.43% 22.60%**
Ratios/Supplemental Data:
Net Assets, End of period (000's)............. $192,250 $147,597 $143,828 $133,426 $ 87,118 $17,215
Ratios to average net assets:
Net investment income...................... 2.29%* 2.48% 2.41% 2.57% 2.79% 3.45%*
Operating expenses......................... 0.40%* 0.40% 0.40% 0.40% 0.40% 0.40%*
Portfolio Turnover Rate....................... 2% 7% 4% 0% 0% 0%
</TABLE>
- -------------------------------------------------------
* Annualized
** Not Annualized
(1) Audited by other auditors
(2) The Fund commenced operations on October 1, 1990.
See Notes to Financial Statements.
41
<PAGE>
-----------
Galaxy Small Company Index Fund
Fund II FINANCIAL HIGHLIGHTS
----------- For a Share outstanding throughout each period
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEARS ENDED MARCH 31,
SEPTEMBER 30, 1995 ------------------------------------------------------------
(UNAUDITED) 1995 1994/(1)/ 1993/(1)/ 1992/(1)/ 1991/(1)(2)/
------------------ -------- -------- -------- -------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of period........... $ 17.62 $ 17.49 $ 17.42 $ 15.39 $ 13.08 $ 10.00
-------- -------- -------- -------- -------- ---------
Income from Investment Operations:
Net investment income....................... 0.16 0.32 0.26 0.25 0.20 0.15
Net realized and unrealized gain (loss)
on investments and futures contracts..... 3.40 0.91 0.39 2.07 2.40 3.01
-------- -------- -------- -------- -------- ---------
Total from Investment Operations:..... 3.56 1.23 0.65 2.32 2.60 3.16
-------- -------- -------- -------- -------- ---------
Less Dividends:
Dividends from net investment income........ -- (0.32) (0.25) (0.24) (0.22) (0.08)
Dividends from net realized capital gains... -- (0.78) (0.33) (0.05) (0.07) --
-------- -------- -------- -------- -------- ---------
Total Dividends:...................... -- (1.10) (0.58) (0.29) (0.29) (0.08)
-------- -------- -------- -------- -------- ---------
Net increase (decrease) in net asset value..... 3.56 0.13 0.07 2.03 2.31 3.08
-------- -------- -------- -------- -------- ---------
Net Asset Value, End of period................. $ 21.18 $ 17.62 $ 17.49 $ 17.42 $ 15.39 $ 13.08
======== ======== ======== ======== ======== =========
Total Return................................... 20.20%** 7.60% 3.64% 15.20% 20.04% 31.83%**
Ratios/Supplemental Data:
Net Assets, End of period (000's).............. $272,593 $235,295 $255,347 $213,669 $116,290 $ 16,334
Ratios to average net assets:
Net investment income....................... 1.59%* 1.72% 1.55% 1.80% 2.26% 2.98%*
Operating expenses.......................... 0.40%* 0.40% 0.40% 0.40% 0.40% 0.40%*
Portfolio Turnover Rate........................ 4% 10% 17% 5% 6% 1%
</TABLE>
- -------------------------------------------------------
* Annualized
** Not Annualized
(1) Audited by other auditors
(2) The Fund commenced operations on October 1, 1990.
See Notes to Financial Statements.
42
<PAGE>
-----------
Galaxy Utility Index Fund
Fund II FINANCIAL HIGHLIGHTS
----------- For a Share outstanding throughout each period
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEARS ENDED MARCH 31,
SEPTEMBER 30, 1995 -----------------------------------------------
(UNAUDITED) 1995 1994/(1)/ 1993/(1)(2)/
------------------ ----------- ---------- ------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of period.............. $ 9.88 $ 9.99 $ 10.93 $ 10.00
----------- ----------- ---------- ----------
Income from Investment Operations:
Net investment income.......................... 0.22 0.47 0.43 0.06
Net realized and unrealized gain (loss)
on investments.............................. 1.77 (0.03) (0.93) 0.93
----------- ----------- ---------- ----------
Total from Investment Operations:........ 1.99 0.44 (0.50) 0.99
----------- ----------- ---------- ----------
Less Dividends:
Dividends from net investment income........... (0.22) (0.46) (0.43) (0.06)
Dividends from net realized capital gains...... -- (0.08) (0.01) --
Dividends in excess of net realized
capital gains............................... -- (0.01) -- --
----------- ----------- ---------- ----------
Total Dividends.......................... (0.22) (0.55) (0.44) (0.06)
----------- ----------- ---------- ----------
Net increase (decrease) in net asset value........ 1.77 (0.11) (0.94) 0.93
----------- ----------- ---------- ----------
Net Asset Value, End of period.................... $ 11.65 $ 9.88 $ 9.99 $ 10.93
=========== =========== ========== ==========
Total Return...................................... 20.38%** 4.67% (4.83)% 9.85%**
Ratios/Supplemental Data:
Net Assets, End of period (000's)................. $ 55,255 $ 52,831 $ 68,445 $ 38,151
Ratios to average net assets:
Net investment income.......................... 4.10%* 4.62% 4.08% 4.66%*
Operating expenses............................. 0.40%* 0.40% 0.40% 0.40%*
Portfolio Turnover Rate........................... 10% 5% 19% 0%
</TABLE>
- -------------------------------------------------------
* Annualized
** Not Annualized
(1) Audited by other auditors
(2) The Fund commenced operations on January 5, 1993.
See Notes to Financial Statements.
43
<PAGE>
-----------
Galaxy U.S. Treasury Index Fund
Fund II FINANCIAL HIGHLIGHTS
----------- For a Share outstanding throughout each period
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEARS ENDED MARCH 31,
SEPTEMBER 30, 1995 ---------------------------------------------------
(UNAUDITED) 1995 1994/(1)/ 1993/(1)/ 1992/(1)(2)/
------------------ --------- --------- --------- ------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of period................... $ 9.91 $ 10.38 $ 11.01 $ 10.39 $ 10.00
--------- --------- --------- --------- ---------
Income from Investment Operations:
Net investment income............................... 0.33 0.65 0.58 0.63 0.51
Net realized and unrealized gain (loss)
on investments................................... 0.45 (0.29) (0.29) 0.75 0.38
--------- --------- --------- --------- ---------
Total from Investment Operations:............. 0.78 0.36 0.29 1.38 0.89
--------- --------- --------- --------- ---------
Less Dividends:
Dividends from net investment income................ (0.33) (0.66) (0.58) (0.63) (0.50)
Dividends in excess of net investment income........ -- (0.01) -- -- --
Dividends from net realized capital gains........... -- -- (0.34) (0.13) --
Dividends in excess of net realized capital gains... -- (0.16) -- -- --
--------- --------- --------- --------- ---------
Total Dividends:.............................. (0.33) (0.83) (0.92) (0.76) (0.50)
--------- --------- --------- --------- ---------
Net increase (decrease) in net asset value............. 0.45 (0.47) (0.63) 0.62 0.39
--------- --------- --------- --------- ---------
Net Asset Value, End of period......................... $ 10.36 $ 9.91 $ 10.38 $ 11.01 $ 10.39
========= ========= ========= ========= =========
Total Return........................................... 7.97%** 3.81% 2.40% 13.69% 8.99%**
Ratios/Supplemental Data:
Net Assets, End of period (000's)...................... $ 116,231 $ 104,251 $ 138,225 $ 145,353 $ 102,830
Ratios to average net assets:
Net investment income............................... 6.49%* 6.43% 5.21% 5.87% 6.40%*
Operating expenses.................................. 0.40%* 0.40% 0.40% 0.40% 0.40%*
Portfolio Turnover Rate................................ 8% 50% 75% 35% 57%
</TABLE>
- ----------------------------------------------------
* Annualized
** Not Annualized
(1) Audited by other auditors
(2) The Fund commenced operations on June 4, 1991.
See Notes to Financial Statements.
44
<PAGE>
-----------
Galaxy Municipal Bond Fund
Fund II FINANCIAL HIGHLIGHTS
----------- For a Share outstanding throughout each period
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEARS ENDED MARCH 31,
SEPTEMBER 30, 1995 ----------------------------
(UNAUDITED) 1995 1994/(1)(2)/
------------------ -------- ------------
<S> <C> <C> <C>
Net Asset Value, Beginning of period.................. $ 9.94 $ 9.89 $ 10.00
------- -------- --------
Income from Investment Operations:
Net investment income.............................. 0.23 0.46 0.43
Net realized and unrealized gain (loss)
on investments.................................. 0.28 0.05 (0.11)
------- -------- --------
Total from Investment Operations:............ 0.51 0.51 0.32
------- -------- --------
Less Dividends:
Dividends from net investment income............... (0.23) (0.46) (0.43)
Dividends from net realized capital gains.......... -- -- --
------- -------- --------
Total Dividends:............................. (0.23) (0.46) (0.43)
------- -------- --------
Net increase (decrease) in net asset value............ 0.28 0.05 (0.11)
------- -------- --------
Net Asset Value, End of period........................ $ 10.22 $ 9.94 $ 9.89
======= ======== ========
Total Return.......................................... 5.20%** 5.34% 3.10%**
Ratios/Supplemental Data:
Net Assets, End of period (000's)..................... $22,883 $ 24,560 $ 33,352
Ratios to average net assets:
Net investment income.............................. 4.58%* 4.72% 4.35%*
Operating expenses................................. 0.60%* 0.60% 0.60%*
Portfolio Turnover Rate............................... 0% 47% 56%
</TABLE>
- ------------------------------------------------------
* Annualized
** Not Annualized
(1) Audited by other auditors
(2) The Fund commenced operations on April 15, 1993.
See Notes to Financial Statements.
45
<PAGE>
-----------
Galaxy
Fund II NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
-----------
1. ORGANIZATION:
Galaxy Fund II ("Galaxy II" or the "Trust"), formerly the "IBM Mutual Funds", is
registered under the Investment Company Act of 1940, as amended, as an open-end
investment company established as a Massachusetts Business Trust. As of the date
of this report, the Trust offered five managed investment portfolios. The
accompanying financial statements and financial highlights are those of the
Large Company Index Fund, the Small Company Index Fund, the Utility Index Fund,
the U.S. Treasury Index Fund, and the Municipal Bond Fund (individually a
"Fund", collectively the "Funds").
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies in conformity with
generally accepted accounting principles consistently followed by the Trust in
the preparation of its financial statements.
PORTFOLIO VALUATION: Listed investment securities are valued by an
independent pricing service approved by the Trust's Board of Trustees at
the last quoted sales price on the principal exchange where such securities
are traded. Unlisted securities or listed securities for which last sales
prices are not available are valued at the closing bid price in the
principal market where such securities trade. U.S. Government securities
(other than short-term investments) are valued at the average of the quoted
bid and asked prices in the over-the-counter market. Debt securities of
U.S. issuers (other than U.S. Government securities and short-term
securities), including municipal securities, are valued at the mean between
the bid price and the asked price. Short-term obligations that mature in 60
days or less are valued at amortized cost, which approximates market value.
Investments for which market quotations are not readily available are
valued based on fair value as determined in good faith in accordance with
procedures established by and under the general supervision of the Board of
Trustees. Futures contracts are valued at the settlement price established
each day by the board of trade or exchange on which they are traded.
REPURCHASE AGREEMENTS: Each Fund may invest in repurchase agreement
transactions with institutions that the Trust's investment adviser has
determined are creditworthy pursuant to guidelines established by the
Trust's Board of Trustees. Each repurchase agreement is recorded at cost.
Each Fund requires that the collateral be transferred to the Trust's
custodian (or a sub-custodian) in a manner that is intended to enable the
Fund to obtain those securities in the event of a counterparty default. The
investment adviser monitors the value of the collateral securities,
including accrued interest, daily to ensure that the value of the
collateral equals or exceeds amounts due under the repurchase agreement.
Repurchase agreements involve certain risks in the event of default or
insolvency of the counterparty, including possible delays or restrictions
upon a Fund's ability to dispose of the underlying collateral securities
and a possible decline in the value of the underlying securities during the
period while the Fund seeks to assert its rights.
46
<PAGE>
-----------
Galaxy NOTES TO FINANCIAL STATEMENTS (continued)
Fund II (UNAUDITED)
-----------
The Funds may transfer uninvested cash balances into a joint trading
account. These balances are invested in a repurchase agreement that matures
in 60 days or less from the date of purchase, and is collateralized by U.S.
Government and Agency Obligations.
FUTURES CONTRACTS: All Funds, except the U.S. Treasury Index Fund, may
enter into futures contracts for the delayed delivery of securities at a
fixed price at some future date or the change in the value of a specified
financial index over a predetermined time period. Cash or securities are
deposited with brokers in order to establish and maintain a position.
Subsequent payments made or received by the Fund based on the daily change
in the market value of the position are recorded as unrealized gain or loss
until the contract is closed out at which time the gain or loss is
realized.
SECURITY TRANSACTIONS AND INVESTMENT INCOME: Security transactions are
accounted for on the trade date basis. Net realized gains or losses on
sales of securities are determined on the identified cost method. Interest
income and expenses are recorded on the accrual basis. Dividends are
recorded on the ex-dividend date.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Dividends from net investment
income are declared daily and paid monthly for the U.S. Treasury Index Fund
and the Municipal Bond Fund, and are declared and paid quarterly for the
Large Company Index Fund and the Utility Index Fund. On September 7, 1995
the Board of Trustees approved an amendment to the dividend policy of the
Small Company Index Fund pursuant to which the Fund will declare and pay
dividends from net investment income on an annual basis. Net realized
capital gains, if any, are distributed at least annually.
Income dividends and capital gain dividends are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles.
FEDERAL INCOME TAXES: The Trust treats each Fund as a separate entity
for Federal income tax purposes. Each Fund intends to qualify each year as
a "regulated investment company" under Subchapter M of the Internal Revenue
Code of 1986, as amended. By so qualifying, each Fund will not be subject
to Federal income taxes to the extent that it distributes substantially all
of its taxable or tax-exempt income, if any, for its tax year ending
March 31. In addition, by distributing in each calendar year substantially
all of its net investment income, capital gains, and certain other amounts,
if any, each Fund will not be subject to a Federal excise tax. Therefore,
no Federal income tax provision is required.
3. SHARES OF BENEFICIAL INTEREST:
The Trust's Declaration of Trust authorizes the Trustees to issue an unlimited
number of shares of beneficial interest, with $0.001 par value.
4. INVESTMENT ADVISORY, ADMINISTRATIVE AND DISTRIBUTION AGREEMENTS:
Effective July 1, 1994, the Trust and Fleet Investment Advisors Inc. (the
"Investment Adviser"), an indirect wholly-owned subsidiary of Fleet Financial
Group, Inc., became parties to an investment advisory agreement under which the
Investment Adviser provides advisory services for a fee, computed daily and paid
monthly, at the annual rate of 0.10% of the average daily net assets of the
Large Company Index, Small Company Index, Utility Index, and U.S. Treasury Index
Funds, and 0.25% of the average daily net assets of the Municipal Bond Fund.
Prior to July 1, 1994, IBM Credit Investment Management Corporation, a wholly-
owned subsidiary of IBM
47
<PAGE>
-----------
Galaxy NOTES TO FINANCIAL STATEMENTS (continued)
Fund II (UNAUDITED)
-----------
Credit Corporation, served as the investment adviser to the Trust for the same
fees as those charged by Fleet Investment Advisors Inc.
Effective July 1, 1994, the Trust and Fleet National Bank (the "Administrator")
became parties to an administrative agreement. Under the agreement, the
Administrator pays all expenses of the Funds, except the fees and expenses of
the Trustees who are not interested persons of the Trust, brokerage fees and
commissions, interest on borrowings, taxes and such extraordinary, non-recurring
expenses as may arise, including litigation to which the Trust may be a party.
Trustee fees which are attributable to more than one Fund of the Trust are
allocated among the respective Funds according to each Fund's relative net
assets.
For its services as administrator, the Administrator receives a fee at an annual
rate of 0.30% of the average daily net assets of each of the Large Company
Index, Small Company Index, Utility Index and U.S. Treasury Index Funds, and
0.35% of the average daily net assets of the Municipal Bond Fund.
Effective March 31, 1995, the Administrator has entered into a sub-
administration agreement with The Shareholder Services Group, Inc. doing
business as 440 Financial ("440 Financial"), a wholly-owned subsidiary of First
Data Corporation ("First Data"), under which 440 Financial (the "Sub-
Administrator") agrees to provide administrative, accounting and transfer agent
services to the Trust. The Administrator bears the fees of the Sub-Administrator
for serving in this capacity.
Prior to March 31, 1995, the sub-administration services described above were
provided by 440 Financial Group of Worcester, Inc., a wholly-owned subsidiary of
State Mutual Life Assurance Company of America ("State Mutual"), for the same
annual fees. On that date, The Shareholder Services Group, Inc. ("TSSG")
acquired substantially all of the assets of 440 Financial Group of Worcester,
Inc. Prior to July 1, 1994, IBM Credit Investment Management Corporation served
as administrator to the Trust for the same fees as those charged by Fleet
National Bank and Flagship Financial, Inc. served as the sub-administrator to
the Trust.
440 Financial Distributors, Inc., a wholly-owned subsidiary of TSSG and an
indirect wholly-owned subsidiary of First Data, acts as the exclusive
distributor of the Trust's shares. Prior to March 31, 1995, the Distributor was
a wholly-owned subsidiary of 440 Financial Group of Worcester, Inc. and an
indirect wholly-owned subsidiary of State Mutual. Prior to July 1, 1994, IBM
Credit Distributors Corporation, a wholly-owned subsidiary of IBM Credit
Corporation, served as the Trust's distributor.
Certain officers of the Trust may be officers of the Sub-Administrator and/or
Distributor. Such officers receive no compensation from the Trust for serving in
their respective roles. No officer, director or employee of the Investment
Adviser serves as an officer, Trustee or employee of the Trust. Effective
May 26, 1995, the fee paid by the Trust to each Trustee was increased from
$4,000 to $5,000 per annum, plus certain other fees for attending or
participating in meetings.
48
<PAGE>
-----------
Galaxy NOTES TO FINANCIAL STATEMENTS (continued)
Fund II (UNAUDITED)
-----------
5. SECURITIES TRANSACTIONS:
The cost of purchases and the proceeds from sales of securities (excluding
short-term investments and futures contracts) for the six months ended
September 30, 1995 for each Fund were as follows:
<TABLE>
<CAPTION>
U.S. Government Other Investment
Securities Securities
---------------------------- --------------------------------
Purchases Sales Purchases Sales
----------- ---------- ------------ ------------
<S> <C> <C> <C> <C>
Large Company Index............... $ -- $ -- $ 23,679,387 $ 3,901,420
Small Company Index............... -- -- 9,199,808 19,238,819
Utility Index..................... -- -- 5,415,470 11,802,318
U.S. Treasury Index............... 15,817,500 8,574,680 -- --
Municipal Bond.................... -- -- -- 2,268,429
</TABLE>
The aggregate cost, gross unrealized appreciation and depreciation and net
unrealized appreciation (depreciation) for all securities as computed on a
Federal income tax basis, at September 30, 1995 for each Fund is as follows:
<TABLE>
<CAPTION>
Cost Appreciation (Depreciation) Net
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Large Company Index.............. $140,334,177 $ 53,698,708 $ (2,293,544) $ 51,405,164
Small Company Index.............. 197,732,107 87,912,523 (14,259,129) 73,653,394
Utility Index.................... 52,472,971 4,937,578 (2,355,854) 2,581,724
U.S. Treasury Index.............. 110,693,780 4,584,392 (986,775) 3,597,617
Municipal Bond................... 21,636,702 606,117 (1,556) 604,561
</TABLE>
49
<PAGE>
-----------
Galaxy
Fund II NOTES TO FINANCIAL STATEMENTS (continued)
----------- (unaudited)
Under current tax law, capital losses realized after October 31 may be deferred
and treated as occurring on the first day of the following fiscal year. The
following Funds had deferred losses which will be treated as arising on the
first day of the fiscal year ended March 31, 1996:
<TABLE>
<CAPTION>
Amount
----------
<S> <C>
Utility Index......................................... $ 718,941
U.S. Treasury Index................................... 818,404
Municipal Bond........................................ 227,910
</TABLE>
At March 31, 1995, the following Funds had capital loss carryforwards:
<TABLE>
<CAPTION>
Capital loss Expiration
Carryforward Date
------------ ----------
<S> <C> <C>
Utility Index........................ $ 351,703 2003
U.S. Treasury Index.................. 4,700,515 2003
Municipal Bond....................... 18,541 2002
888,410 2003
</TABLE>
6. FINANCIAL INSTRUMENTS:
The Large Company Index, Small Company Index and Utility Index Funds may enter
into stock index futures contracts that are traded on a national exchange. These
Funds will enter into stock index futures contracts for hedging purposes, to
maintain cash reserves while remaining fully invested, to facilitate trading, to
reduce transaction costs or to seek higher investment returns when a stock index
futures contract is priced more attractively than the underlying index. The
Municipal Bond Fund may purchase put or call options on interest rate and
municipal bond index futures contracts as a hedge against changes in interest
rates, and may enter into closing transactions with respect to such options to
terminate existing positions. The Fund will segregate assets to cover its
commitments on purchased futures contracts.
Risks associated with using financial instruments such as futures as a hedge
include an imperfect correlation between the movements in the price of the
instruments and the price of the underlying securities and interest rates, an
illiquid secondary market for the instruments or the inability of counterparties
to perform under the terms of the contract.
7. CONCENTRATION OF CREDIT RISK:
The Utility Index Fund will concentrate its investments in the utility industry.
As a result, the Fund's investments may be subject to greater risk and market
fluctuation than a fund that has securities representing a broader range of
investment alternatives.
50
<PAGE>
Trustees
and Officers
Dwight E. Vicks, Jr.
Chairman and Trustee
John T. O'Neill
President, Treasurer
and Trustee
Louis DeThomasis,
F.S.C., Ph.D.
Trustee
Donald B. Miller
Trustee
James M. Seed
Trustee
Bradford S. Wellman
Trustee
W. Bruce
McConnel, III, Esq.
Secretary
Neil Forrest
Vice President &
Assistant Treasurer
Louis J. Russo
Assistant Treasurer
Investment Advisor
Fleet Investment
Advisors Inc.
45 East Avenue
Rochester, New York
14604
Distributor
440 Financial
Distributors, Inc.
290 Donald Lynch Boulevard
Marlboro,
Massachusetts 01752
Administrator
Fleet National Bank
50 Kennedy Plaza
Providence,
Rhode Island 02903-2305
For complete information, and before making an investment decision on any of the
Funds of Galaxy Fund II, you should request a prospectus from 440 Financial
Distributors, Inc., by calling (800) 628-0414. This report is submitted for the
general information of shareholders of Galaxy Fund II. It is not authorized for
distribution to prospective investors unless accompanied or preceded by an
effective prospectus for each Fund of Galaxy Fund II, which contains more
information concerning investment policies, expenses of the Funds as well as
other pertinent information. Read the prospectus carefully before you invest.
Shares of the Funds are not deposits or obligations of, or guaranteed or
endorsed by Fleet Financial Group, Inc. or any of its affiliates, Fleet
Investment Advisors Inc., or any Fleet bank. Shares of the Funds are not
federally insured by the U.S. Government, the Federal Deposit Insurance
Corporation, the Federal Reserve Board or any other agency. The performance data
quoted represents past performance and the investment return and principal value
will vary as a result of market conditions or other factors so that shares of
the Funds, when redeemed, may be worth more or less than their original cost. An
investment in the Funds involves investment risks, including the possible loss
of principal.
This report was printed on recycled paper. [LOGO OF RECYCLED PAPER APPEARS HERE]
<PAGE>
------------------
- -------- BULK RATE
Galaxy 4400 Computer Drive U. S. POSTAGE PAID
Fund II P.O. Box 5108 PERMIT NO. 54201
- -------- Westboro, MA 01581-5108 BOSTON, MA
------------------
FN-346 (11/95)
