<PAGE>
PIMCO
CAPITAL APPRECIATION . SMALL CAP VALUE
. ENHANCED EQUITY . MICRO CAP GROWTH .
MID CAP EQUITY . EQUITY INCOME . CORE EQUITY
. SMALL CAP GROWTH . INTERNATIONAL ACTIVE .
EMERGING MARKETS . DIVERSIFIED LOW P/E
. BALANCED . MID CAP GROWTH
PIMCO FUNDS: EQUITY ADVISORS SERIES
SEMI-ANNUAL REPORT . DECEMBER 31, 1996
<PAGE>
CONTENTS
Chairman's Message 1
About the Portfolio Managers 2
Investment Performance 3
Statement of Assets and Liabilities 16
Statement of Operations 18
Statement of Changes in Net Assets 20
Financial Highlights 24
Schedules of Investments
NFJ Equity Income Fund 30
NFJ Diversified Low P/E Fund 31
NFJ Small Cap Value Fund 32
Cadence Capital Appreciation Fund 34
Cadence Mid Cap Growth Fund 36
Cadence Micro Cap Growth Fund 38
Cadence Small Cap Growth Fund 40
Columbus Circle Investors
Core Equity Fund 42
Columbus Circle Investors
Mid Cap Equity Fund 43
Parametric Enhanced Equity Fund 44
Blairlogie Emerging Markets Fund 46
Blairlogie International Active Fund 49
Balanced Fund 51
Notes to Financial Statements 54
<PAGE>
CHAIRMAN'S MESSAGE
Dear Shareholder:
The six-month period covered by this Semi-Annual Report was a time of
continuing strength for the stock market. From June 30, 1996 to
December 31, 1996, the market, as measured by the S&P 500 Index, rose
11.68%, while mid cap stocks (S&P MidCap Index) climbed 9.15% and
small cap stocks (Russell 2000 Index) increased 5.56%. As the
remainder of this report shows, these favorable conditions greatly
benefited the overall results and performance of our Funds. In fact,
as of the end of the year, eight of our thirteen Funds were rated
four-stars by Morningstar. More detailed information about each Fund
and the portfolio managers follows this message.
Consolidating PIMCO Funds
As part of our continuing effort to provide the best possible service
and investment options, we recently consolidated our mutual fund
offerings, combining the PIMCO Funds: Equity Advisors Series (your
fund family) with the PIMCO Advisors Funds, an affiliated fund group,
to form the PIMCO Funds: Multi-Manager Series. Together these Funds
are now all united in the "PIMCO Funds" family.
For the most part, this consolidation should have been
transparent for you as a shareholder. Your Fund's management and
investment objective have not changed, and your client servicing
remains the same. The daily listing of your Fund's NAV in the
newspaper will continue to appear under the heading "PIMCO Funds,"
but is now designated "Institutional."
While the fundamental characteristics of your investment have
remained the same, this consolidation has brought about some positive
changes. The most significant of these changes is your increased
access to more Funds managed by the institutional investment
management firms of PIMCO Advisors L.P.
New investment options
As a PIMCO Funds shareholder you now have access to four additional
institutional mutual funds:
. PIMCO Renaissance Fund -- Managed by Columbus Circle Investors,
this Fund seeks long-term growth of capital and income through
investment in income-producing stocks and convertibles.
. PIMCO Innovation Fund -- Also managed by Columbus Circle
Investors, the Innovation Fund seeks capital appreciation through
investment in the common stocks of technology-related companies.
. PIMCO International Fund -- Unlike the more specialized Emerging
Markets Fund or the International Developed Fund, Blairlogie's
International Fund invests in common stocks of companies in both
emerging and developed markets to achieve capital appreciation.
. PIMCO Global Bond Fund II (part of PIMCO Funds: Pacific
Investment Management Series) - Managed by Pacific Investment
Management Company, this Fund seeks maximum total return,
consistent with preservation of capital, through a portfolio of
intermediate-term, high quality U.S. and non-U.S. bonds.
If you have any questions about any of the PIMCO Funds or the changes discussed
here, we encourage you to contact us at (800) 927-4648. We appreciate the
confidence you have placed in us through your investment and we are committed
to maintaining the high standards you have come to expect from us.
Sincerely,
/S/William D. Cvengros
- ----------------------
William D. Cvengros
Chairman of the Board
February 18, 1997
1
<PAGE>
ABOUT THE PORTFOLIO MANAGERS
Blairlogie Capital Management
Blairlogie's investment professionals have established a
methodology that applies fundamental valuation criteria first to
country allocation, then to security selection, with the objective
of adding value over time at a low level of portfolio risk. A
disciplined selection process is applied to both developed and
emerging countries. Systematic screening identifies when markets
become either relatively cheap or overvalued, which results in
raising or lowering the weighting in each market. The stock
selection process focuses on a variety of quality and value
factors. Sell decisions are influenced by reallocation of country
weights and changes in a stock's relative rank.
Cadence Capital Management
All portfolios from large to medium to small to micro
capitalizations are managed using a screening process developed in
the mid-1970's which applies five distinct growth and valuation
screens to the stock universe. The process identifies companies
with high relative earnings growth, improving profitability,
strong earnings momentum, potentially high future earnings growth
and attractive valuations. Continuous monitoring of portfolios
quickly identifies stocks to be sold. All portfolios are broad-
based with up to 100 stocks and remain fully invested to assure
participation in rising equity markets.
Columbus Circle Investors
The firm's investment philosophy is based on the premise that
companies doing better than expected will have rising securities
prices, or "Positive Momentum & Positive Surprise." This
discipline adds stocks of growing companies that exceed investors'
expectations, and sells or avoids those that fall short of those
expectations.
NFJ Investment Group
NFJ Investment Group is a value-oriented equity manager
specializing in a diversified, low price-earnings (P/E) approach.
Developed by the firm's managing directors in the mid-1970's, this
approach is based on research showing that portfolios of low P/E
stocks have consistently outperformed market indexes over the long
term. The firm screens more than 2,000 stocks in 55 industry
groups to find the lowest P/E, high-yield stocks, then analyzes
candidates for earnings, quality and relative price momentum.
Portfolios are normally fully invested, equally weighted and
rebalanced quarterly.
Pacific Investment Management Company
Pacific Investment Management's fixed income philosophy embodies
three key principles:
. Major shifts in portfolio strategy are driven by longer-term,
or secular, trends as opposed to short-term gyrations in
interest rates;
. Consistent investment performance is achieved by avoiding
extreme swings in maturity and duration of a portfolio;
. An emphasis is placed on adding value through advanced tools
such as futures, options and volatility analysis as well as
through adjustments to traditional variables such as sector,
coupon and quality.
Parametric Portfolio Associates
To enhance benchmark returns, historical analysis is used to
identify a group of stocks that have the highest probability of
outperforming the benchmark in both up and down markets. Stocks
are reweighted or eliminated from a benchmark based on their past
60 months of performance. The result is a portfolio that has
index-like characteristics with volatility no greater than that of
the selected benchmark. To control risk, economic sectors in
portfolios are kept similar to benchmark weights.
2
<PAGE>
NFJ EQUITY INCOME FUND
PORTFOLIO MANAGER:
NFJ Investment Group
Dallas, Texas
<TABLE>
<CAPTION>
TOTAL RETURN INVESTMENT PERFORMANCE
Periods Ended 12/31/96
- --------------------------------------------------------------------------
Since
6 Mos. 1 Yr. 3 Yrs.* 5 Yrs.* Inception*
-------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NFJ Equity
Income Fund
Inst. Class (%) 10.91 21.47 16.84 14.70 15.66
S&P 500
Index (%) 11.68 22.96 19.68 15.22 15.68
- --------------------------------------------------------------------------
Since
6 Mos. 1 Yr. 2 Yrs.* Inception*
-------------------------------------------------------
<S> <C> <C> <C> <C>
Admin. Class (%) 10.86 21.20 27.07 25.93
S&P 500
Index (%) 11.68 22.96 30.06 29.55
- --------------------------------------------------------------------------
</TABLE>
*Annualized
INVESTMENT OBJECTIVES AND PRIMARY INVESTMENTS:
Seeks current income as a primary investment objective, and long-term growth of
capital as a secondary objective; invests primarily in common stocks with below-
average price to earnings ratios and higher dividend yields relative to their
industry groups.
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Cumulative Returns Since Inception Through December 31, 1996
- --------------------------------------------------------------------------------
NFJ
EQUITY INCOME S&P 500
FUND INDEX
============ ============= =============
<S> <C> <C>
03/31/91 200,000.00 200,000.00
06/30/91 205,385.15 199,562.09
06/30/92 245,656.80 226,346.75
06/30/93 281,939.22 257,193.41
06/30/94 281,203.57 260,812.03
06/30/95 333,815.27 328,808.61
06/30/96 416,799.53 414,298.10
12/31/96 462,259.13 462,705.65
</TABLE>
The line graph depicts the value of $200,000 invested at the inception of the
Fund's Institutional Class in March 1991 and held through December 1996,
compared to the S&P 500 Index, an unmanaged market index. The performance of the
Administrative Class from inception in November 1994 (shown at left), reflects
the payment of a service fee in an amount not to exceed 0.25% on an annualized
basis. Past performance is not an indication of future results.
. Positive stock selection across several sectors helped the Fund's
relative performance.
. The Fund's large underweighting in the top-performing Technology sector
penalized performance for the six-month period.
. Overweighting in the Financial Services sector, together with
especially strong stock picks such as Mellon Bank and Bear
Stearns, was a positive influence on performance.
. Reversing a trend, value stocks outperformed growth stocks for
the three-month period ended December 31, 1996, leading us to
be optimistic about the Fund's performance going forward.
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION % of Total Investments as of December 31, 1996
- --------------------------------------------------------------------------------
Top Ten Common Stocks
Company
- -------------------------------------------
Bear Stearns Cos. 4.0%
- -------------------------------------------
Northrop Grumman Corp. 3.9%
- -------------------------------------------
Ultramar Diamond Shamrock Corp. 3.8%
- -------------------------------------------
Phelps Dodge Corp. 3.7%
- -------------------------------------------
Aetna, Inc. 2.0%
- -------------------------------------------
Harland (John H.) Co. 2.0%
- -------------------------------------------
Pacific Telesis 2.0%
- -------------------------------------------
DTE Energy Co. 2.0%
- -------------------------------------------
Sprint Corp. 2.0%
- -------------------------------------------
Meditrust 2.0%
- -------------------------------------------
Top Ten Total 27.4%
Industry Classifications
[PIE CHART APPEARS HERE]
Utilities 19.0%
- -------------------------------------------
Financial & Business Services 17.5%
- -------------------------------------------
Consumer Discretionary 15.2%
- -------------------------------------------
Energy 9.4%
- -------------------------------------------
Health Care 9.3%
- -------------------------------------------
Materials & Processing 9.1%
- -------------------------------------------
Consumer Staples 7.4%
- -------------------------------------------
Other 13.1%
- -------------------------------------------
3
<PAGE>
NFJ DIVERSIFIED LOW P/E FUND
PORTFOLIO MANAGER:
NFJ Investment Group
Dallas, Texas
<TABLE>
<CAPTION>
TOTAL RETURN INVESTMENT PERFORMANCE
Periods Ended 12/31/96
- --------------------------------------------------------------------------
Since
6 Mos. 1 Yr. 3 Yrs.* 5 Yrs.* Inception*
---------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NFJ Diversified
Low P/E
Fund (%) 10.32 20.34 17.05 16.13 16.11
- --------------------------------------------------------------------------
S&P 500
Index (%) 11.68 22.96 19.68 15.22 15.20
- --------------------------------------------------------------------------
</TABLE>
*Annualized
INVESTMENT OBJECTIVE AND PRIMARY INVESTMENTS:
Seeks long-term growth of capital and income; invests primarily in common stocks
with below-average price to earnings ratios relative to their industry groups.
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Cumulative Returns Since Inception Through December 31, 1996
- -------------------------------------------------------------------------------
NFJ
DIVERSIFIED S&P 500
LOW P/E FUND INDEX
=========== ============ ============
<S> <C> <C>
12/31/91 200,000.00 200,000.00
06/30/92 202,695.80 198,668.60
06/30/93 241,678.60 225,743.27
06/30/94 247,667.58 228,919.40
06/30/95 302,307.56 288,601.22
06/30/96 382,894.70 363,636.88
12/31/96 422,397.35 406,125.05
</TABLE>
The line graph depicts the value of $200,000 invested at the inception of the
Fund's Institutional Class in December 1991 and held through December 1996,
compared to the S&P 500 Index, an unmanaged market index. Past performance is
not an indication of future results.
. Strong performance over the last six months was due in large part to the
Fund's Technology holdings, including Teradyne and Seagate Technology.
. Takeover stocks also made a positive contribution, such as PHH, which will be
merged with HFS, and Conrail, which was pursued by both CSX and Norfolk
Southern.
. The Fund's earnings sensitivity pulled down performance as the market worried
about a slowing economy and earnings disappointments.
. The Fund's policy of placing a heavier weight on stocks with
higher price momentum and dividend yield continued to add value.
- -------------------------------------------------------------------------------
PORTFOLIO COMPOSITION % of Total Investments as of December 31, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Top Ten Common Stocks
Company
- -------------------------------------------------
<S> <C>
- -------------------------------------------------
Xerox Corp. 3.1%
- -------------------------------------------------
Bear Stearns Cos. 3.0%
- -------------------------------------------------
Ultramar Diamond Shamrock Corp. 3.0%
- -------------------------------------------------
Pharmacia & Upjohn, Inc. 2.9%
- -------------------------------------------------
Sprint Corp. 2.9%
- -------------------------------------------------
Pacific Telesis 2.9%
- -------------------------------------------------
PHH Corp. 2.9%
- -------------------------------------------------
Mellon Bank Corp. 2.8%
- -------------------------------------------------
NICOR, Inc. 2.8%
- -------------------------------------------------
Atlantic Richfield Co. 2.7%
- -------------------------------------------------
Top Ten Total 29.0%
</TABLE>
<TABLE>
<CAPTION>
Industry Classifications
[PIE CHART APPEARS HERE]
<S> <C>
Consumer Discretionary 18.2%
- -------------------------------------------------
Financial & Business Services 16.1%
- -------------------------------------------------
Utilities 12.2%
- -------------------------------------------------
Energy 11.6%
- -------------------------------------------------
Consumer Staples 10.4%
- -------------------------------------------------
Technology 8.6%
- -------------------------------------------------
Health Care 7.7%
- -------------------------------------------------
Materials & Processing 6.6%
- -------------------------------------------------
Other 8.6%
- -------------------------------------------------
</TABLE>
4
<PAGE>
NFJ SMALL CAP VALUE FUND
PORTFOLIO MANAGER:
NFJ Investment Group
Dallas, Texas
<TABLE>
<CAPTION>
TOTAL RETURN INVESTMENT PERFORMANCE
Periods Ended 12/31/96
- -------------------------------------------------------------------------------
Since
6 Mos. 1 Yr. 3 Yrs.* 5 Yrs.* Inception*
--------------------------------------------------
<S> <C> <C> <C> <C> <C>
NFJ Small Cap
Value Fund
Inst. Class (%) 14.92 27.72 15.57 15.84 16.33
Russell 2000
Index (%) 5.56 16.49 13.68 15.64 16.05
- -------------------------------------------------------------------------------
Admin. Class (%) 14.74 27.37 27.35
Russell 2000
Index (%) 5.56 16.49 20.68
- -------------------------------------------------------------------------------
</TABLE>
*Annualized
INVESTMENT OBJECTIVE AND PRIMARY INVESTMENTS:
Seeks long-term growth of capital and income; invests primarily in common stocks
of companies with market capitalizations between $50 million and $1 billion and
below-average price to earnings ratios relative to their industry groups.
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Cumulative Returns Since Inception Through December 31, 1996
- --------------------------------------------------------------------------------
NFJ SMALL
CAP VALUE RUSSELL 2000
FUND INDEX
============== ============== ==============
<S> <C> <C>
09/30/91 200,000.00 200,000.00
06/30/92 220,609.82 211,806.87
06/30/93 266,760.46 266,788.50
06/30/94 273,206.15 278,538.57
06/30/95 315,931.80 334,441.71
06/30/96 385,400.84 414,328.85
12/31/96 442,919.13 437,360.24
</TABLE>
The line graph depicts the value of $200,000 invested at the inception of the
Fund's Institutional Class in October 1991 and held through December 1996,
compared to the Russell 2000 Index, an unmanaged market index. The performance
of the Administrative Class from inception in November 1995 (shown at left),
reflects the payment of a service fee in an amount not to exceed 0.25% on an
annualized basis. Past performance is not an indication of future results.
. Almost all of the Fund's sectors outperformed during the six-month period,
with Technology, Consumer Staples and Energy leading the way.
. The timing of the our purchases and sales was much improved during the last
six months of 1996.
. Investors' continued emphasis on larger cap issues continues to hinder
the small cap arena and the Fund.
. We are optimistic about the Fund's future given our belief that small cap
stocks are due for a revival and valuation still favors value over growth.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION % of Total Investments as of December 31, 1996
- --------------------------------------------------------------------------------
Top Ten Common Stocks
Company
- -------------------------------------------------
<S> <C>
Computer Data Systems, Inc. 1.2%
- -------------------------------------------------
Fremont General 1.1%
- -------------------------------------------------
Charter Power Systems 1.1%
- -------------------------------------------------
Dimon, Inc. 1.1%
- -------------------------------------------------
Harman International 1.1%
- -------------------------------------------------
Caraustar Industries, Inc. 1.1%
- -------------------------------------------------
McGrath Rentcorp. 1.1%
- -------------------------------------------------
Capstead Mortgage Corp. 1.1%
- -------------------------------------------------
Continental Homes 1.1%
- -------------------------------------------------
South West Property Trust 1.1%
- -------------------------------------------------
Top Ten Total 11.1%
<CAPTION>
Industry Classifications
[PIE CHART APPEARS HERE]
<S> <C>
Financial & Business Services 22.1%
- -------------------------------------------------
Materials & Processing 15.9%
- -------------------------------------------------
Consumer Discretionary 11.8%
- -------------------------------------------------
Capital Goods 11.4%
- -------------------------------------------------
Utilities 7.1%
- -------------------------------------------------
Consumer Staples 6.8%
- -------------------------------------------------
Technology 5.8%
- -------------------------------------------------
Short-Term Instruments 5.3%
- -------------------------------------------------
Other 13.8%
- -------------------------------------------------
</TABLE>
5
<PAGE>
CADENCE CAPITAL APPRECIATION FUND
PORTFOLIO MANAGER:
Cadence Capital Management
Boston, Massachusetts
<TABLE>
<CAPTION>
TOTAL RETURN INVESTMENT PERFORMANCE
Periods Ended 12/31/96
- ------------------------------------------------------------------------------
Since
6 Mos. 1 Yr. 3 Yrs.* 5 Yrs.* Inception*
-------------------------------------------------
<S> <C> <C> <C> <C> <C>
Cadence Capital
Appreciation Fund
Inst. Class (%) 13.83 26.79 18.52 16.07 17.50
- ------------------------------------------------------------------------------
S&P 500
Index (%) 11.68 22.96 19.68 15.22 15.68
- ------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------
Since
Inception
-----------
<S> <C>
Admin. Class (%) 19.70
- ------------------------------------------------------------------------------
S&P 500
Index (%) 16.85
- ------------------------------------------------------------------------------
</TABLE>
*Annualized
INVESTMENT OBJECTIVE AND PRIMARY INVESTMENTS:
Seeks growth of capital; invests primarily in common stocks of companies with
market capitalizations of at least $100 million that have improving fundamentals
and whose stock is reasonably valued by the market.
[LINE GRAPH APPEARS HERE]
- --------------------------------------------------------------------------------
Cumulative Returns Since Inception Through December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CADENCE CAPITAL
APPRECIATION S&P 500
FUND INDEX
============== ============== ==============
<S> <C> <C>
03/31/91 200,000.00 200,000.00
06/30/91 192,802.44 199,562.09
06/30/92 225,859.66 226,346.75
06/30/93 286,136.01 257,193.41
06/30/94 287,662.65 260,812.03
06/30/95 356,827.65 328,808.61
06/30/96 444,843.55 414,298.10
12/31/96 506,352.47 462,705.65
</TABLE>
The line graph depicts the value of $200,000 invested at the inception of the
Fund's Institutional Class in March 1991 and held through December 1996,
compared to the S&P 500 Index, an unmanaged market index. The performance of the
Administrative Class from inception in July 1996 (shown at left), reflects the
payment of a service fee in an amount not to exceed 0.25% on an annualized
basis. Past performance is not an indication of future results.
. Much of the Fund's strength came from investments in the Energy sector, led by
holdings such as Ensco International and Vastar Resources.
. Financial Services continues to be a major contributor to the Fund, picking up
after a lull in the prior six-month period.
. Health Care investments were a drag on performance as the industry's positive
business cycle came to a halt during the last six months.
. Strong stock selection was evident by the fact that the Fund's holdings had
far fewer downward earnings revisions than either the S&P 500 or the Russell
2000.
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION % of Total Investments as of December 31, 1996
- --------------------------------------------------------------------------------
Top Ten Common Stocks
<TABLE>
<S> <C>
Company
- -------------------------------------------------
TJX Cos., Inc. 1.8%
- -------------------------------------------------
Ensco International 1.6%
- -------------------------------------------------
United Technologies 1.6%
- -------------------------------------------------
Allied Signal, Inc. 1.5%
- -------------------------------------------------
Dell Computer Corp., Inc. 1.5%
- -------------------------------------------------
Tyco Labs 1.5%
- -------------------------------------------------
Boston Scientific Corp. 1.5%
- -------------------------------------------------
Safeway, Inc. 1.5%
- -------------------------------------------------
Compaq Computer Corp. 1.5%
- -------------------------------------------------
Travelers Group, Inc. 1.4%
- -------------------------------------------------
Top Ten Total 15.4%
</TABLE>
Industry Classifications
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Financial & Business Services 20.2%
- -------------------------------------------------
Technology 14.6%
- -------------------------------------------------
Consumer Discretionary 12.5%
- -------------------------------------------------
Capital Goods 11.2%
- -------------------------------------------------
Energy 10.7%
- -------------------------------------------------
Health Care 9.1%
- -------------------------------------------------
Short-Term Instruments 4.8%
- -------------------------------------------------
Other 16.9%
- -------------------------------------------------
</TABLE>
6
<PAGE>
CADENCE MID CAP GROWTH FUND
PORTFOLIO MANAGER:
Cadence Capital Management
Boston, Massachusetts
<TABLE>
<CAPTION>
TOTAL RETURN INVESTMENT PERFORMANCE
Periods Ended 12/31/96
- ------------------------------------------------------------------------------
Since
6 Mos. 1 Yr. 3 Yrs.* 5 Yrs.* Inception*
-------------------------------------------------
<S> <C> <C> <C> <C> <C>
Cadence Mid Cap
Growth Fund
Inst. Class (%) 14.68 23.36 18.25 15.89 17.52
- ------------------------------------------------------------------------------
S&P MidCap
Index (%) 9.15 19.20 14.60 13.93 15.39
- ------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------
Since
6 Mos. 1 Yr. 2 Yrs.* Inception*
-------------------------------------------------
<S> <C> <C> <C> <C>
Admin. Class (%) 14.53 25.03 29.79 29.82
- ------------------------------------------------------------------------------
S&P MidCap
Index (%) 9.15 19.20 24.94 24.32
- ------------------------------------------------------------------------------
</TABLE>
*Annualized
INVESTMENT OBJECTIVE AND PRIMARY INVESTMENTS:
Seeks growth of capital; invests primarily in common stocks of companies with
market capitalizations in excess of $500 million that have improving
fundamentals and whose stock is reasonably valued by the market.
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Cumulative Returns Since Inception Through December 31, 1996
- --------------------------------------------------------------------------------
CADENCE
MID CAP GROWTH S&P MidCap
FUND INDEX
============== ============== ==============
<S> <C> <C>
08/31/91 200,000.00 200,000.00
06/30/92 215,125.07 215,789.61
06/30/93 270,635.26 264,752.62
06/30/94 268,011.79 264,607.95
06/30/95 339,759.01 323,737.51
06/30/96 413,018.47 393,621.30
12/31/96 473,649.79 429,620.08
</TABLE>
The line graph depicts the value of $200,000 invested at the inception of the
Fund's Institutional Class in August 1991 and held through December 1996,
compared to the S&P MidCap Index, an unmanaged market index. The performance of
the Administrative Class from inception in November 1994 (shown at left),
reflects the payment of a service fee in an amount not to exceed 0.25% on an
annualized basis. Past performance is not an indication of future results.
. The Fund's Financial Services holdings were among the most important
contributors to performance over the six-month period, with holdings such as
Public Storage, which gained 29% in the fourth quarter alone.
. Energy holdings also benefited the Fund, as a favorable supply/demand balance
created a strong pricing environment for the sector.
. The Fund's Health Care investments were less positive, offsetting gains
achieved in other sectors.
. Looking ahead, we believe the Fund's growth-at-a-reasonable-price strategy
should pay off in 1997 as it did in 1996.
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION % of Total Investments as of December 31, 1996
- --------------------------------------------------------------------------------
Top Ten Common Stocks
Company
- -------------------------------------------------
Belden, Inc. 1.5%
- -------------------------------------------------
Harnischfeger Industries, Inc. 1.4%
- -------------------------------------------------
York International Corp. 1.4%
- -------------------------------------------------
Interstate Bakeries Corp. 1.4%
- -------------------------------------------------
Tosco Corp. 1.3%
- -------------------------------------------------
Cadence Designs Systems, Inc. 1.3%
- -------------------------------------------------
Western Digital Corp. 1.3%
- -------------------------------------------------
Bemis, Inc. 1.3%
- -------------------------------------------------
Citizens Corp. 1.3%
- -------------------------------------------------
Public Storage, Inc. 1.3%
- -------------------------------------------------
Top Ten Total 13.5%
Industry Classifications
[PIE CHART APPEARS HERE]
Financial & Business Services 28.7%
- -------------------------------------------------
Technology 15.0%
- -------------------------------------------------
Consumer Discretionary 13.3%
- -------------------------------------------------
Capital Goods 9.0%
- -------------------------------------------------
Energy 7.6%
- -------------------------------------------------
Materials & Pocessing 5.6%
- -------------------------------------------------
Other 20.8%
- -------------------------------------------------
7
<PAGE>
CADENCE MICRO CAP GROWTH FUND
PORTFOLIO MANAGER:
Cadence Capital Management
Boston, Massachusetts
<TABLE>
<CAPTION>
TOTAL RETURN INVESTMENT PERFORMANCE
Period Ended 12/31/96
- ----------------------------------------------------------------
Since
6 Mos. 1 Yr. 3 Yrs* Inception*
----------------------------------------
<S> <C> <C> <C> <C>
Cadence Micro
Cap Growth Fund
Inst. Class (%) 6.26 23.83 19.45 22.01
- ----------------------------------------------------------------
Russell 2000
Index (%) 5.56 16.49 13.68 15.14
- ----------------------------------------------------------------
<CAPTION>
- ----------------------------------------------------------------
Since
6 Mos. Inception
----------------------------------------
<S> <C> <C>
Admin. Class (%) 6.10 17.07
- ----------------------------------------------------------------
Russell 2000
Index (%) 5.56 10.84
- ----------------------------------------------------------------
</TABLE>
*Annualized
INVESTMENT OBJECTIVE AND PRIMARY INVESTMENTS:
Seeks long-term growth of capital; invests primarily in common stocks of
companies with market capitalizations of less than $100 million that have
improving fundamentals and whose stock is reasonably valued by the market.
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
Cumulative Returns Since Inception Through December 31, 1996
- --------------------------------------------------------------------------
CADENCE
MICRO CAP RUSSELL 2000
GROWTH FUND INDEX
=============== =========== ============
<S> <C> <C>
06/30/93 200,000.00 200,000.00
06/30/94 219,510.89 208,808.53
06/30/95 277,646.15 250,716.73
06/30/96 378,115.91 310,604.73
12/31/96 401,792.27 327,870.38
</TABLE>
The line graph depicts the value of $200,000 invested at the inception of the
Fund's Institutional Class in June 1993 and held through December 1996, compared
to the Russell 2000 Index, an unmanaged market index. The performance of the
Administrative Class from inception in April 1996 (shown at left), reflects the
payment of a service fee in an amount not to exceed 0.25% on an annualized
basis. Past performance is not an indication of future results.
. Technology was one of the Fund's strongest sectors over the last six months,
due in large part to selective stock picking such as Qlogic, BTG and
Quickturn.
. The Energy sector was also very positive for the Fund, encouraging increased
holdings in this area from two to six stocks representing nearly 7% of the
Fund's assets on December 31, 1996.
. The performance of the Fund's Consumer Goods investments was relatively weak
as signs of a slowing economy hurt this sector.
. Financial Services was an important contributor to the Fund throughout
the year, and should remain a significant component of the Fund going
forward.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------
Portfolio Composition % of Total Investments as of December 31,1996
- ----------------------------------------------------------------------
Top Ten Common Stocks
Company
- ------------------------------------------------
<S> <C>
Health Images, Inc. 2.5%
- ------------------------------------------------
Quickturn Design Systems, Inc. 2.2%
- ------------------------------------------------
Riser Foods, Inc. 2.2%
- ------------------------------------------------
Qlogic Corp. 2.2%
- ------------------------------------------------
Gardner Denver Machinery, Inc. 2.0%
- ------------------------------------------------
Culp, Inc. 1.9%
- ------------------------------------------------
Ha-Lo Industries, Inc. 1.9%
- ------------------------------------------------
All American Communications, Inc. `B' 1.9%
- ------------------------------------------------
Warren Bancorp, Inc. 1.9%
- ------------------------------------------------
Computer Data Systems, Inc. 1.8%
- ------------------------------------------------
Top Ten Total 20.5%
<CAPTION>
Industry Classifications
[PIE CHART APPEARS HERE]
<S> <C>
Financial & Business Services 18.4%
- ------------------------------------------------
Technology 14.6%
- ------------------------------------------------
Consumer Discretionary 11.6%
- ------------------------------------------------
Consumer Services 11.1%
- ------------------------------------------------
Capital Goods 10.5%
- ------------------------------------------------
Short-Term Instruments 9.3%
- ------------------------------------------------
Health Care 7.6%
- ------------------------------------------------
Energy 6.5%
- ------------------------------------------------
Other 10.4%
- ------------------------------------------------
</TABLE>
8
<PAGE>
CADENCE SMALL CAP GROWTH FUND
PORTFOLIO MANAGER:
Cadence Capital Management
Boston, Massachusetts
<TABLE>
<CAPTION>
TOTAL RETURN INVESTMENT PERFORMANCE
Periods Ended 12/31/96
- ------------------------------------------------------------------------------
Since
6 Mos. 1 Yr. 3 Yrs.* 5 Yrs.* Inception*
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Cadence Small
Cap Growth Fund
Inst. Class (%) 9.71 16.83 12.70 15.76 19.76
Russell 2000
Index (%) 5.56 16.49 13.68 15.64 18.79
- ------------------------------------------------------------------------------
Admin. Class (%) 9.53 16.71 8.10
Russell 2000
Index (%) 5.56 16.49 14.88
- ------------------------------------------------------------------------------
</TABLE>
*Annualized
INVESTMENT OBJECTIVE AND PRIMARY INVESTMENTS:
Seeks growth of capital; invests primarily in common stocks of companies with
market capitalizations between $50 million and $1 billion that have improving
fundamentals and whose stock is reasonably valued by the market.
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
Cumulative Returns Since Inception Through December 31, 1996
- ------------------------------------------------------------------------------
CADENCE
SMALL CAP RUSSELL 2000
GROWTH FUND INDEX
============== ============== ==============
<S> <C> <C>
01/31/91 200,000.00 200,000.00
06/30/91 230,646.85 234,339.32
06/30/92 267,775.04 268,407.23
06/30/93 374,972.56 338,081.41
06/30/94 385,274.10 352,971.41
06/30/95 451,844.24 423,813.33
06/30/96 530,133.57 525,048.43
12/31/96 581,615.73 554,234.40
</TABLE>
The line graph depicts the value of $200,000 invested at the inception of the
Fund's Institutional Class in January 1991 and held through December 1996,
compared to the Russell 2000 Index, an unmanaged market index. The performance
of the Administrative Class from inception in September 1995 (shown at left),
reflects the payment of a service fee in an amount not to exceed 0.25% on an
annualized basis. Past performance is not an indication of future results.
. The Fund continued to build its Energy position over the last six months,
ending the period with 8 stocks that represented nearly 11% of the Fund's
assets. The sector made a major contribution to performance over the period.
. Financial Services holdings continued to drive performance with holdings such
as First Midwest Bancorp, which gained 36% in the fourth quarter alone.
. In contrast to the prior six-month period, the Fund's Health Care exposure
offset gains achieved in other sectors.
. While the majority of investors have adopted a "big at any price" attitude,
we will focus Fund investments on smaller capitalization stocks.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
PORTFOLIO COMPOSITION % of Total Investments as of December 31, 1996
- -------------------------------------------------------------------------------
Top Ten Common Stocks
Company
- ------------------------------------------------
<S> <C>
CN Falcon Drilling Co. 1.6%
- ------------------------------------------------
Zeigler Coal Holding Co. 1.6%
- ------------------------------------------------
First Midwest Bancorp, Inc. 1.5%
- ------------------------------------------------
Watsco, Inc. `A' 1.5%
- ------------------------------------------------
Capital Re Corp. 1.4%
- ------------------------------------------------
Veritas DGC, Inc. 1.4%
- ------------------------------------------------
Swift Energy Co. 1.4%
- ------------------------------------------------
NCI Building Systems, Inc. 1.4%
- ------------------------------------------------
Pride Petroleum Services, Inc. 1.4%
- ------------------------------------------------
Veritas Software Corp. 1.4%
- ------------------------------------------------
Top Ten Total 14.6%
<CAPTION>
Industry Classifications
[PIE CHART APPEARS HERE]
<S> <C>
Financial & Business Services 27.2%
- ------------------------------------------------
Capital Goods 13.3%
- ------------------------------------------------
Technology 12.5%
- ------------------------------------------------
Energy 10.7%
- ------------------------------------------------
Materials & Processing 8.3%
- ------------------------------------------------
Consumer Discretionary 7.0%
- ------------------------------------------------
Consumer Services 6.0%
- ------------------------------------------------
Short-Term Instruments 5.5%
- ------------------------------------------------
Other 9.5%
- ------------------------------------------------
</TABLE>
9
<PAGE>
COLUMBUS CIRCLE INVESTORS CORE EQUITY FUND
PORTFOLIO MANAGER:
Columbus Circle Investors
Stamford, Connecticut
<TABLE>
<CAPTION>
TOTAL RETURN INVESTMENT PERFORMANCE
Periods Ended 12/31/96
- ----------------------------------------------------
Since
6 Mos. 1 Yr. 2 Yrs.* Inception*
-----------------------------------
<S> <C> <C> <C> <C>
Columbus Circle
Investors Core
Equity Fund
Inst. Class (%) 7.99 17.95 22.85 22.82
S&P 500
Index (%) 11.68 22.96 30.06 30.02
- ----------------------------------------------------
Admin. Class (%) 7.85 17.65 18.62
S&P 500
Index (%) 11.68 22.96 25.79
- ----------------------------------------------------
</TABLE>
*Annualized
INVESTMENT OBJECTIVES AND PRIMARY INVESTMENTS:
Seeks long-term growth of capital, with income as a secondary objective; invests
primarily in common stocks of companies with market capitalizations in excess of
$3 billion.
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
Cumulative Returns Since Inception Through December 31, 1996
- --------------------------------------------------------------------------
COLUMBUS CIRCLE
INVESTORS CORE S&P 500
EQUITY FUND INDEX
=============== =============== ============
<S> <C> <C>
12/31/94 200,000.00 200,000.00
06/30/95 236,843.74 240,425.55
06/30/96 279,518.34 302,935.64
12/31/96 301,848.12 338,331.35
</TABLE>
The line graph depicts the value of $200,000 invested at the inception of the
Fund's Institutional Class in December 1994 and held through December 1996,
compared to the S&P 500 Index, an unmanaged market index. The performance of the
Administrative Class from inception in May 1995 (shown at left), reflects the
payment of a service fee in an amount not to exceed 0.25% on an annualized
basis. Past performance is not an indication of future results.
. The market's attention to large, liquid companies, instead of company
fundamentals, created an unfavorable environment for the Fund's investment
process and contributed to results that trailed the S&P 500 Index.
. On the whole, the Fund's sector allocations were correct, but several
holdings failed to meet expectations. More than 40% of the Fund was invested
in the two best sectors of the large cap market - Technology and Financial
Services, but specific holdings in each area held down performance.
. A sector bet that didn't pay off was overweighting the Retail sector. Weak
holiday sales combined with a few disappointing company-specific
announcements to discourage investor participation in the sector. Several of
the Fund's retail holdings had negative returns, including Home Depot and
Staples. Others, such as Price Costco and TJX, managed to sustain investors'
confidence and produce positive returns in excess of 20%.
. Future purchases are likely to reflect our cautious outlook on the market.
Companies with solid fundamentals tend to hold up the best in flat or down
markets, so we will be emphasizing these companies.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Portfolio Composition % of Total Investments as of December 31,1996
- --------------------------------------------------------------------------------
Top Ten Common Stocks
Company
- ------------------------------------------------
<S> <C>
Intel Corp. 3.4%
- ------------------------------------------------
Boeing 3.3%
- ------------------------------------------------
Worldcom, Inc. 2.9%
- ------------------------------------------------
Schlumberger Limited 2.7%
- ------------------------------------------------
Allstate Corp. 2.7%
- ------------------------------------------------
Microsoft Corp. 2.4%
- ------------------------------------------------
Chase Manhattan Corp. 2.3%
- ------------------------------------------------
HBO & Co. 2.3%
- ------------------------------------------------
NationsBank Corp. 2.2%
- ------------------------------------------------
TJX Cos., Inc. 2.0%
- ------------------------------------------------
Top Ten Total 26.2%
<CAPTION>
Industry Classifications
[PIE CHART APPEARS HERE]
<S> <C>
Technology 29.9%
- ------------------------------------------------
Short-Term Instruments 13.4%
- ------------------------------------------------
Consumer Discretionary 13.1%
- ------------------------------------------------
Health Care 12.6%
- ------------------------------------------------
Financial & Business Services 8.3%
- ------------------------------------------------
Energy 7.6%
- ------------------------------------------------
Other 15.1%
- ------------------------------------------------
</TABLE>
10
<PAGE>
COLUMBUS CIRCLE INVESTORS MID CAP EQUITY FUND
PORTFOLIO MANAGER:
Columbus Circle Investors
Stamford, Connecticut
<TABLE>
<CAPTION>
TOTAL RETURN INVESTMENT PERFORMANCE
Periods Ended 12/31/96
- ---------------------------------------------------------------
Since
6 Mos. 1 Yr. 2 Yrs.* Inception*
----------------------------------------
<S> <C> <C> <C> <C>
Columbus Circle
Investors Mid Cap
Equity Fund (%) 2.35 17.31 24.30 24.27
- ---------------------------------------------------------------
S&P MidCap
Index (%) 9.15 19.20 24.94 24.90
- ---------------------------------------------------------------
</TABLE>
*Annualized
INVESTMENT OBJECTIVE AND PRIMARY INVESTMENTS:
Seeks long-term growth of capital; invests primarily in common stocks of
companies with market capitalizations between $800 million and $3 billion.
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Cumulative Returns Since Inception Through December 31, 1996
- --------------------------------------------------------------------------------
COLUMBUS CIRCLE
INVESTORS
MID CAP EQUITY S&P MIDCAP
FUND INDEX
=========== ================= ===============
<S> <C> <C>
12/31/94 200,000.00 200,000.00
06/30/95 234,000.00 235,246.41
06/30/96 301,947.12 286,028.01
12/31/96 309,033.92 312,186.81
</TABLE>
The line graph depicts the value of $200,000 invested at the inception of the
Fund's Institutional Class in December 1994 and held through December 1996,
compared to the S&P MidCap Index, an unmanaged market index. Past performance is
not an indication of future results.
. The Fund suffered a disappointing second half while it struggled to recover
from a low point in July.
. A heavy weighting in Technology hurt performance as small and mid cap
companies did not recover from their summer declines the way that the large
cap Technology sector did.
. Profit taking also hit some of the Fund's winners, especially in the Consumer
Cyclical sector. Although the Fund's exposure to this sector had been
meaningfully reduced in the third and fourth quarters, the remaining exposure
to this sector was a detriment to performance in December.
. Energy and Financial Services holdings did not represent a large portion of
the Fund's assets but did account for a significant amount of positive
performance.
. Going forward, we have adopted a cautiously optimistic attitude that reflects
the growing consensus that the economy and the market can not continue as
they have been.
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION % of Total Investments as of December 31, 1996
- --------------------------------------------------------------------------------
Top Ten Common Stocks
<TABLE>
Company
- -------------------------------------------------
<S> <C>
APAC Teleservices, Inc. 3.8%
- -------------------------------------------------
Diebold, Inc. 3.2%
- -------------------------------------------------
U.S.A. Waste Services, Inc. 3.0%
- -------------------------------------------------
Altera Corp. 2.4%
- -------------------------------------------------
BioChem Pharma, Inc. 2.4%
- -------------------------------------------------
Ensco International, Inc. 2.4%
- -------------------------------------------------
Washington Mutual, Inc. 2.3%
- -------------------------------------------------
Greenpoint Financial Corp. 2.3%
- -------------------------------------------------
Harnischfeger Industries, Inc. 2.2%
- -------------------------------------------------
Jones Apparel Group, Inc. 2.2%
- -------------------------------------------------
Top Ten Total 26.2%
</TABLE>
Industry Classifications
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Technology 23.5%
- -------------------------------------------------
Consumer Discretionary 14.0%
- -------------------------------------------------
Consumer Services 13.4%
- -------------------------------------------------
Energy 11.1%
- -------------------------------------------------
Capital Goods 11.0%
- -------------------------------------------------
Financial & Business Services 7.6%
- -------------------------------------------------
Short-Term Instruments 6.5%
- -------------------------------------------------
Other 12.9%
- -------------------------------------------------
</TABLE>
11
<PAGE>
PARAMETRIC ENHANCED EQUITY FUND
PORTFOLIO MANAGER:
Parametric Portfolio Associates
Seattle, Washington
<TABLE>
<CAPTION>
TOTAL RETURN INVESTMENT PERFORMANCE
Periods Ended 12/31/96
- ------------------------------------------------------------------------
Since
6 Mos. 1 Yr. 3 Yrs.* 5 Yrs.* Inception*
------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Parametric
Enhanced Equity
Fund (%) 11.81 21.15 17.46 12.37 13.84
- ------------------------------------------------------------------------
S&P 500
Index (%) 11.68 22.96 19.68 15.22 15.91
- ------------------------------------------------------------------------
</TABLE>
*Annualized
INVESTMENT OBJECTIVE AND PRIMARY INVESTMENTS:
Seeks to provide a total return which equals or exceeds the total return
performance of the Standard & Poor's 500 Composite Stock Price Index; invests in
common stocks represented in that Index.
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Cumulative Returns Since Inception Through December 31, 1996
- --------------------------------------------------------------------------------
PARAMETRIC
ENHANCED EQUITY S&P 500
FUND INDEX
=============== =============== ===============
<S> <C> <C>
02/28/91 200,000.00 200,000.00
06/30/91 203,003.00 204,391.49
06/30/92 227,562.48 231,824.34
06/30/93 255,730.49 263,417.49
06/30/94 252,011.33 267,123.68
06/30/95 310,919.78 336,765.78
06/30/96 381,554.26 424,324.11
12/31/96 426,596.87 473,903.12
</TABLE>
The line graph depicts the value of $200,000 invested at the inception of the
Fund's Institutional Class in February 1991 and held through December 1996,
compared to the S&P 500 Index, an unmanaged market index. Past performance is
not an indication of future results.
. The Fund's best performing sector during the quarter ended December 31, 1996
was Technology, which was also the top performer for the S&P 500 Index.
. Relative gains in the Fund's Technology holdings were offset by
underperformance in such sectors as Retail and Health Care.
. The Fund benefited from superior stock selection in the Financial Services
sector.
. Looking ahead, we have rebalanced the Fund by trimming positions in Financial
Services and adding to Energy and Health Care holdings.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION % of Total Investments as of December 31, 1996
- --------------------------------------------------------------------------------
Top Ten Common Stocks
<S> <C>
Company
- ------------------------------------------------
Intel Corp. 2.7%
- ------------------------------------------------
Eastman Kodak 2.4%
- ------------------------------------------------
Philip Morris Co., Inc. 2.3%
- ------------------------------------------------
Dayton Hudson Corp. 2.0%
- ------------------------------------------------
American Home Products 2.0%
- ------------------------------------------------
Merck & Co., Inc. 2.0%
- ------------------------------------------------
Sears Roebuck 1.8%
- ------------------------------------------------
Archer-Daniel Midland 1.7%
- ------------------------------------------------
Loews Corp. 1.7%
- ------------------------------------------------
Chase Manhattan Corp. 1.7%
- ------------------------------------------------
Top Ten Total 20.3%
</TABLE>
Industry Classifications
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Technology 13.8%
- ------------------------------------------------
Consumer Discretionary 13.8%
- ------------------------------------------------
Health Care 13.8%
- ------------------------------------------------
Financial & Business Services 13.1%
- ------------------------------------------------
Utilities 8.4%
- ------------------------------------------------
Consumer Staples 8.1%
- ------------------------------------------------
Energy 7.9%
- ------------------------------------------------
Capital Goods 6.7%
- ------------------------------------------------
Other 14.4%
- ------------------------------------------------
</TABLE>
12
<PAGE>
BLAIRLOGIE EMERGING MARKETS FUND
PORTFOLIO MANAGER:
Blairlogie Capital Management
Edinburgh, Scotland
<TABLE>
<CAPTION>
TOTAL RETURN INVESTMENT PERFORMANCE
Periods Ended 12/31/96
- ---------------------------------------------------------------
Since
6 Mos. 1 Yr. 3 Yrs.* Inception*
----------------------------------------
<S> <C> <C> <C> <C>
Blairlogie Emerging
Markets Fund
Inst. Class (%) (5.11) 4.82 (5.44) 8.11
MSCI Emerging
Markets Free
Index (%) (4.20) 6.01 (2.34) 11.28
- ---------------------------------------------------------------
Since
6 Mos. 1 Yr. 2 Yrs.* Inception*
----------------------------------------
<S> <C> <C> <C> <C>
Admin. Class (%) (5.38) 4.55 (4.55) (11.46)
MSCI Emerging
Markets Free
Index (%) (4.20) 6.01 0.25 (5.90)
- ---------------------------------------------------------------
</TABLE>
*Annualized
INVESTMENT OBJECTIVE AND PRIMARY INVESTMENTS:
Seeks long-term growth of capital; invests primarily in common stocks of
companies located in emerging market countries.
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Cumulative Returns Since Inception Through December 31, 1996
- --------------------------------------------------------------------------------
BLAIRLOGIE
EMERGING MSCI
MARKETS FUND INDEX
=========== =============== ===============
<S> <C> <C>
05/31/93 200,000.00 200,000.00
06/30/93 203,000.00 205,926.58
06/30/94 289,112.99 282,454.60
06/30/95 258,899.48 282,420.43
06/30/96 278,841.51 306,375.71
12/31/96 264,586.67 293,502.25
</TABLE>
The line graph depicts the value of $200,000 invested at the inception of the
Fund's Institutional Class in June 1993 and held through December 1996, compared
to the Morgan Stanley Capital International (MSCI) Emerging Markets Free Index,
an unmanaged market index of emerging markets stocks. The performance of the
Administrative Class from the inception in November 1994 (shown at left),
reflects the payment of a service fee in an amount not to exceed 0.25% on an
annualized basis. Foreign investing involves potentially higher risks including
foreign currency fluctuations, and political or economic uncertainty. Past
performance is not an indication of future results.
. Although it retraced much of October's slide the emerging markets asset class
as a whole posted negative returns for the six-month period.
. The Dollar closed strongly against the currencies of its major trading
partners, creating a negative currency impact on the Fund.
. In total, stock selection was neutral, but this disguised the strong
performance of the Fund's Asian holdings.
. The Fund saw particularly strong performances from Hungary, Israel and
Turkey, encouraging us to maintain our future exposure to these countries,
partly at the expense of South Africa.
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION % of Total Investments as of December 31, 1996
- --------------------------------------------------------------------------------
Top Ten Common Stocks
Company
- ------------------------------------------------
Centrais Electicas Brasileiras SA 2.7%
- ------------------------------------------------
Telecomunicacoes Brasileiras - ADR 2.6%
- ------------------------------------------------
Telefonos de Mexico - ADR 2.5%
- ------------------------------------------------
Telekom Malaysia Berhad 1.7%
- ------------------------------------------------
Elektrim Spolka Akcyjna SA 1.4%
- ------------------------------------------------
San Miguel Corp. 1.3%
- ------------------------------------------------
Gamuda Berhad 1.3%
- ------------------------------------------------
Grupo Financiero Banamex 1.2%
- ------------------------------------------------
United Engineers 1.2%
- ------------------------------------------------
Cia Vale Rio Doce 1.2%
- ------------------------------------------------
Top Ten Total 17.1%
Country Classifications
[PIE CHART APPEARS HERE]
Brazil 14.9%
- ------------------------------------------------
Malaysia 14.0% 14.0%
- ------------------------------------------------
Mexico 11.2%
- ------------------------------------------------
South Africa 6.6%
- ------------------------------------------------
Israel 6.6%
- ------------------------------------------------
India 6.4%
- ------------------------------------------------
South Korea 4.9%
- ------------------------------------------------
Philippines 4.8%
- ------------------------------------------------
Poland 3.9%
- ------------------------------------------------
Turkey 3.8%
- ------------------------------------------------
Other 22.9%
- ------------------------------------------------
13
<PAGE>
BLAIRLOGIE INTERNATIONAL ACTIVE FUND
PORTFOLIO MANAGER:
Blairlogie Capital Management
Edinburgh, Scotland
<TABLE>
<CAPTION>
TOTAL RETURN INVESTMENT PERFORMANCE
Periods Ended 12/31/96
- --------------------------------------------------------------------------------
Since
6 Mos. 1 Yr. 3 Yrs.* Inception*
----------------------------------------------------
<S> <C> <C> <C> <C>
Blairlogie International
Active Fund
Inst. Class (%) 0.34 5.83 9.89 11.27
EAFE
Index (%) 1.62 6.36 8.64 9.64
- --------------------------------------------------------------------------------
<CAPTION>
Since
6 Mos. 1 Yr. 2 Yrs.* Inception*
----------------------------------------------------
Admin. Class (%) 0.26 5.58 11.08 10.61
EAFE
Index (%) 1.62 6.36 8.93 8.87
- --------------------------------------------------------------------------------
</TABLE>
*Annualized
INVESTMENT OBJECTIVE AND PRIMARY INVESTMENTS:
Seeks long-term growth of capital; invests primarily in a diversified portfolio
of international equity securities.
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Cumulative Returns Since Inception Through December 31, 1996
- --------------------------------------------------------------------------------
BLAIRLOGIE
INTERNATIONAL EAFE
ACTIVE FUND INDEX
============== ================ ================
<S> <C> <C>
06/30/93 200,000.00 200,000.00
06/30/94 240,885.93 234,608.60
06/30/95 244,636.32 239,183.70
06/30/96 289,843.18 271,766.57
12/31/96 290,833.93 276,159.24
</TABLE>
The line graph depicts the value of $200,000 invested at the inception of the
Fund's Institutional Class in June 1993 and held through December 1996, compared
to the Morgan Stanley Capital International EAFE Index (Europe, Australasia, Far
East), an unmanaged market index of over 1,000 stocks. The performance of the
Administrative Class from inception in November 1994 (shown at left), reflects
the payment of a service fee in an amount not to exceed 0.25% on an annualized
basis. Foreign investing involves potentially higher risks including foreign
currency fluctuations, and political or economic uncertainty. Past performance
is not an indication of future results.
. Top-down country selection was the strongest contributor to the Fund's
performance relative to its benchmark.
. Much of the gain from country selection was offset by poor stock returns,
especially from Japan.
. Malaysia was the fourth largest country weighting in the Fund with stocks
offering strong profit momentum and improving liquidity pictures.
. Europe represented the largest regional weighting. In Europe, large gains
from Spain and Finland were partly offset by Sweden and France.
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION % of Total Investments as of December 31, 1996
- --------------------------------------------------------------------------------
Top Ten Common Stocks
Company
- --------------------------------------------------
Matsushita Electric Works 1.6%
- --------------------------------------------------
Murata Manufacturing Co., Limited 1.6%
- --------------------------------------------------
Bayer AG 1.6%
- --------------------------------------------------
Sumitomo Trust & Banking 1.6%
- --------------------------------------------------
Mannesmann AG 1.6%
- --------------------------------------------------
Veba AG 1.6%
- --------------------------------------------------
Zeneca Group PLC 1.5%
- --------------------------------------------------
Nippon Telegraph & Telephone Corp. 1.5%
- --------------------------------------------------
Abbey National PLC 1.4%
- --------------------------------------------------
NKK Corp. 1.4%
- --------------------------------------------------
Top Ten Total 15.4%
Country Classifications
[PIE CHART APPEARS HERE]
Japan 27.7%
- --------------------------------------------------
United Kingdom 18.7%
- --------------------------------------------------
Germany 10.5%
- --------------------------------------------------
Malaysia 6.5%
- --------------------------------------------------
France 5.1%
- --------------------------------------------------
Switzerland 5.0%
- --------------------------------------------------
Netherlands 4.8%
- --------------------------------------------------
Finland 3.8%
- --------------------------------------------------
Spain 3.8%
- --------------------------------------------------
Italy 3.7%
- --------------------------------------------------
Other 10.4%
- --------------------------------------------------
14
<PAGE>
BALANCED FUND
PORTFOLIO MANAGERS:
Cadence Capital Management
Boston, Massachusetts
NFJ Investment Group
Dallas, Texas
Pacific Investment
Management Company
Newport Beach, California
<TABLE>
<CAPTION>
TOTAL RETURN INVESTMENT PERFORMANCE
Periods Ended 12/31/96
- --------------------------------------------------------------------------------
Since
6 Mos. 1 Yr. 3 Yrs.* Inception*
----------------------------------------------------
<S> <C> <C> <C> <C>
Balanced Fund (%) 8.81 13.13 12.47 11.75
- --------------------------------------------------------------------------------
S&P 500
Index (%) 11.68 22.96 19.68 17.19
- --------------------------------------------------------------------------------
Lehman Aggregate
Bond Index (%) 4.90 3.63 6.03 7.20
- --------------------------------------------------------------------------------
</TABLE>
*Annualized
INVESTMENT OBJECTIVE AND PRIMARY INVESTMENTS:
Seeks total return consistent with prudent investment management; invests in
common stocks, fixed income securities and money market instruments.
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Cumulative Returns Since Inception Through December 31, 1996
- --------------------------------------------------------------------------------
LEHMAN BROTHERS
AGGREGATE BOND S&P 500
BALANCED FUND INDEX INDEX
============== ============== ============== ==============
<S> <C> <C> <C>
06/30/92 200,000.00 200,000.00 200,000.00
06/30/93 225,529.20 223,567.29 227,256.11
06/30/94 222,935.54 220,658.22 230,453.52
06/30/95 263,426.94 248,344.74 290,535.31
06/30/96 303,280.20 260,803.29 366,073.83
12/31/96 329,991.17 273,595.41 408,846.74
</TABLE>
The line graph depicts the value of $200,000 invested at the inception of the
Fund's Institutional Class in June 1992 and held through December 1996, compared
to the Lehman Brothers Aggregate Bond Index and S&P 500 Index, unmanaged bond
and stock market indexes. Past performance is not an indication of future
results.
. The portion of the Fund invested in value stocks benefited most from a large
position in the Technology sector. Some of these gains were slightly offset
by the negative effect of a slowing economy on the many earnings-sensitive
holdings.
. The growth stock portion of the Fund saw much of its strength come from
investments in the Energy and Financial Services sectors, while Health Care
investments acted as a drag on performance when the industry's business cycle
came to a halt during the last six months.
. For the fixed income portion of the Fund, mortgage-backed securities and
below investment grade bonds were strong performers as a result of their
initial yield advantage over Treasury securities coupled with price
appreciation from spread narrowing in 1996's second half. An above-index
duration posture heightened volatility but had little net impact as rates
ended the period modestly lower.
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION % of Total Investments as of December 31, 1996
- --------------------------------------------------------------------------------
Top Five Holdings
Issuer
- --------------------------------------------------
Government National Mortgage
Association - 6.5% 7.2%
- --------------------------------------------------
U.S. Treasury Notes - 5.25% 6.8%
- --------------------------------------------------
Government National Mortgage
Association - 7.125% 6.0%
- --------------------------------------------------
Long Island Lighting Co. - 9% 2.9%
- --------------------------------------------------
Federal Home Loan Mortgage
Corporation - 6.5% 2.6%
- --------------------------------------------------
Top Five Total 25.5%
Industry Classifications
[PIE CHART APPEARS HERE]
Mortgage-Backed Securities 29.3%
- --------------------------------------------------
Financial & Business Services 10.2%
- --------------------------------------------------
Consumer Discretionary 8.5%
- --------------------------------------------------
U.S. Treasury Notes 6.8%
- --------------------------------------------------
Corporate Bonds & Notes 6.5%
- --------------------------------------------------
Technology 6.2%
- --------------------------------------------------
Energy 6.1%
- --------------------------------------------------
Short-Term Instruments 5.2%
- --------------------------------------------------
Other 21.2%
- --------------------------------------------------
15
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
Amounts in thousands, except per share amounts
Cadence
Cadence Capital Mid Cap
NFJ Equity NFJ Diversified NFJ Small Cap Appreciation Growth
Assets: Income Fund Low P/E Fund Value Fund Fund Fund
<S> <C> <C> <C> <C> <C>
Investments, at value $ 119,716 $ 63,672 $ 36,814 $ 432,354 $ 225,938
- ------------------------------------------------- ----------- ------------- ------------- ------------- -----------
Cash and foreign currency 0 1 2 0 1
- ------------------------------------------------- ----------- ------------- ------------- ------------- -----------
Receivable for investments and
foreign currency sold 301 0 0 1,160 820
- ------------------------------------------------- ----------- ------------- ------------- ------------- -----------
Receivable for Fund shares sold 2 0 12 1,155 636
- ------------------------------------------------- ----------- ------------- ------------- ------------- -----------
Interest and dividends receivable 416 148 95 432 185
- ------------------------------------------------- ----------- ------------- ------------- ------------- -----------
120,435 63,821 36,923 435,101 227,580
================================================= =========== ============= ============= ============= ===========
Liabilities:
Payable for investments and foreign
currency purchased $ 539 $ 0 $ 38 $ 14,404 $ 763
- ------------------------------------------------- ----------- ------------- ------------- ------------- -----------
Written options outstanding 0 0 0 0 0
- ------------------------------------------------- ----------- ------------- ------------- ------------- -----------
Payable for Fund shares redeemed 13 0 662 2,728 1
- ------------------------------------------------- ----------- ------------- ------------- ------------- -----------
Dividends payable 249 1 14 472 41
- ------------------------------------------------- ----------- ------------- ------------- ------------- -----------
Accrued investment advisor's fee 46 24 18 162 85
- ------------------------------------------------- ----------- ------------- ------------- ------------- -----------
Accrued administrator's fee 25 14 8 90 47
- ------------------------------------------------- ----------- ------------- ------------- ------------- -----------
Accrued distribution fee 1 0 1 0 0
- ------------------------------------------------- ----------- ------------- ------------- ------------- -----------
Variation margin payable 0 0 0 0 0
- ------------------------------------------------- ----------- ------------- ------------- ------------- -----------
Other liabilities 0 0 0 0 0
- ------------------------------------------------- ----------- ------------- ------------- ------------- -----------
873 39 741 17,856 937
================================================= =========== ============= ============= ============= ===========
Net Assets $ 119,562 $ 63,782 $ 36,182 $ 417,245 $ 226,643
================================================= =========== ============= ============= ============= ===========
Net Assets Consist of:
Paid in capital $ 95,780 $ 56,831 $ 29,428 $ 330,544 $ 179,870
- ------------------------------------------------- ----------- ------------- ------------- ------------- -----------
Undistributed (overdistributed)
net investment income 2,702 28 820 3,891 2,085
- ------------------------------------------------- ----------- ------------- ------------- ------------- -----------
Accumulated undistributed net realized gain (loss) (47) 575 54 (439) 5,661
- ------------------------------------------------- ----------- ------------- ------------- ------------- -----------
Net unrealized appreciation 21,127 6,348 5,880 83,249 39,027
- ------------------------------------------------- ----------- ------------- ------------- ------------- -----------
$ 119,562 $ 63,782 $ 36,182 $ 417,245 $ 226,643
================================================= =========== ============= ============= ============= ===========
Shares Issued and Outstanding
Institutional class 8,324 4,891 2,274 22,679 12,647
- ------------------------------------------------- ----------- ------------- ------------- ------------- -----------
Administrative class 493 0 360 73 76
- ------------------------------------------------- ----------- ------------- ------------- ------------- -----------
Net Asset Value, Offering and Redemption Price
Per Share (Net Assets Per Share Outstanding)
Institutional class $ 13.56 $ 13.04 $ 13.74 $ 18.34 $ 17.81
- ------------------------------------------------- ----------- ------------- ------------- ------------- -----------
Administrative class 13.56 -- 13.73 18.32 17.80
- ------------------------------------------------- ----------- ------------- ------------- ------------- -----------
Cost of Investments Owned 98,589 57,324 30,934 349,105 186,911
================================================= =========== ============= ============= ============= ===========
Cost of Foreign Currency Held 0 0 0 0 0
================================================= =========== ============= ============= ============= ===========
</TABLE>
See Notes to Financial Statements
16
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1996 (unaudited)
Amounts in thousands, except per share amounts
<TABLE>
<CAPTION>
------------- ------------- --------------- ---------------
Columbus
Cadence Micro Cadence Small Columbus Circle Circle Investors
Cap Growth Cap Growth Investors Core Mid Cap Equity
Fund Fund Equity Fund Fund
------------- ------------- --------------- ---------------
Assets:
<S> <C> <C> <C> <C>
Investments, at value $ 109,784 $ 31,966 $ 45,364 $ 7,752
- ------------------------------------------------- ----------- ------------- ------------- -------------
Cash and foreign currency 0 1 38 0
- ------------------------------------------------- ----------- ------------- ------------- -------------
Receivable for investments and
foreign currency sold 502 165 118 334
- ------------------------------------------------- ----------- ------------- ------------- -------------
Receivable for Fund shares sold 823 0 21 0
- ------------------------------------------------- ----------- ------------- ------------- -------------
Interest and dividends receivable 69 39 33 18
- ------------------------------------------------- ----------- ------------- ------------- -------------
$ 111,178 $ 32,171 $ 45,574 $ 8,104
================================================= =========== ============= ============= =============
Liabilities:
Payable for investments and foreign
currency purchased $ 134 $ 114 $ 37 $ 194
- ------------------------------------------------- ----------- ------------- ------------- -------------
Written options outstanding 0 0 0 0
- ------------------------------------------------- ----------- ------------- ------------- -------------
Payable for Fund shares redeemed 8 0 0 0
- ------------------------------------------------- ----------- ------------- ------------- -------------
Dividends payable 0 0 11 0
- ------------------------------------------------- ----------- ------------- ------------- -------------
Accrued investment advisor's fee 116 29 22 4
- ------------------------------------------------- ----------- ------------- ------------- -------------
Accrued administrator's fee 22 7 10 2
- ------------------------------------------------- ----------- ------------- ------------- -------------
Accrued distribution fee 0 0 7 0
- ------------------------------------------------- ----------- ------------- ------------- -------------
Variation margin payable 0 0 0 0
- ------------------------------------------------- ----------- ------------- ------------- -------------
Other liabilities 0 0 0 0
- ------------------------------------------------- ----------- ------------- ------------- -------------
280 150 87 200
================================================= =========== ============= ============= =============
Net Assets $ 110,898 $ 32,021 $ 45,487 $ 7,904
================================================= =========== ============= ============= =============
Net Assets Consist of:
Paid in capital $ 84,602 $ 25,345 $ 38,720 $ 6,433
- ------------------------------------------------- ----------- ------------- ------------- -------------
Undistributed (overdistributed)
net investment income (242) 3,189 1,489 263
- ------------------------------------------------- ----------- ------------- ------------- -------------
Accumulated undistributed net realized gain (loss) 1,295 (1,750) 571 276
- ------------------------------------------------- ----------- ------------- ------------- -------------
Net unrealized appreciation 25,243 5,237 4,707 932
- ------------------------------------------------- ----------- ------------- ------------- -------------
$ 110,898 $ 32,021 $ 45,487 $ 7,904
================================================= =========== ============= ============= =============
Shares Issued and Outstanding
Institutional class 6,243 2,674 803 603
- ------------------------------------------------- ----------- ------------- ------------- -------------
Administrative class 68 2 2,490 0
- ------------------------------------------------- ----------- ------------- ------------- -------------
Net Asset Value, Offering and Redemption Price
Per Share (Net Assets Per Share Outstanding)
Institutional class $ 17.57 $ 11.97 $ 13.81 $ 13.11
- ------------------------------------------------- ----------- ------------- ------------- -------------
Administrative class 17.53 11.93 13.82 --
- ------------------------------------------------- ----------- ------------- ------------- -------------
Cost of Investments Owned 84,541 26,729 40,657 6,820
================================================= =========== ============= ============= =============
Cost of Foreign Currency Held 0 0 0 0
================================================= =========== ============= ============= =============
<CAPTION>
------------- ------------- --------------- ---------------
Parametric Blairlogie Blairlogie
Enhanced Equity Emerging International Balanced
Fund Markets Fund Active Fund Fund
------------- ------------- --------------- ---------------
Assets:
<S> <C> <C> <C> <C>
Investments, at value $ 47,325 $ 58,421 $ 84,981 $ 72,618
- ------------------------------------------------- ----------- ------------- ------------- -------------
Cash and foreign currency 1 384 5,969 1
- ------------------------------------------------- ----------- ------------- ------------- -------------
Receivable for investments and
foreign currency sold 36,918 966 600 5,091
- ------------------------------------------------- ----------- ------------- ------------- -------------
Receivable for Fund shares sold 137 15 70 8
- ------------------------------------------------- ----------- ------------- ------------- -------------
Interest and dividends receivable 154 244 166 277
- ------------------------------------------------- ----------- ------------- ------------- -------------
$ 84,535 $ 60,030 $ 91,786 $ 77,995
================================================= =========== ============= ============= =============
Liabilities:
Payable for investments and foreign
currency purchased $ 1,791 $ 0 $ 24 $ 13,329
- ------------------------------------------------- ----------- ------------- ------------- -------------
Written options outstanding 0 0 0 5
- ------------------------------------------------- ----------- ------------- ------------- -------------
Payable for Fund shares redeemed 34,392 88 113 1,148
- ------------------------------------------------- ----------- ------------- ------------- -------------
Dividends payable 0 88 0 3
- ------------------------------------------------- ----------- ------------- ------------- -------------
Accrued investment advisor's fee 31 43 46 24
- ------------------------------------------------- ----------- ------------- ------------- -------------
Accrued administrator's fee 17 25 39 14
- ------------------------------------------------- ----------- ------------- ------------- -------------
Accrued distribution fee 0 0 1 0
- ------------------------------------------------- ----------- ------------- ------------- -------------
Variation margin payable 0 0 0 35
- ------------------------------------------------- ----------- ------------- ------------- -------------
Other liabilities 0 516 0 0
- ------------------------------------------------- ----------- ------------- ------------- -------------
36,231 760 223 14,558
================================================= =========== ============= ============= =============
Net Assets $ 48,304 $ 59,270 $ 91,563 $ 63,437
================================================= =========== ============= ============= =============
Net Assets Consist of:
Paid in capital $ 31,058 $ 70,898 $ 86,261 $ 57,021
- ------------------------------------------------- ----------- ------------- ------------- -------------
Undistributed (overdistributed)
net investment income 919 (300) 2,005 (24)
- ------------------------------------------------- ----------- ------------- ------------- -------------
Accumulated undistributed net realized gain (loss) 10,091 (13,194) (826) 739
- ------------------------------------------------- ----------- ------------- ------------- -------------
Net unrealized appreciation 6,236 1,866 4,123 5,701
- ------------------------------------------------- ----------- ------------- ------------- -------------
$ 48,304 $ 59,270 $ 91,563 $ 63,437
================================================= =========== ============= ============= =============
Shares Issued and Outstanding
Institutional class 3,449 4,949 7,196 6,051
- ------------------------------------------------- ----------- ------------- ------------- -------------
Administrative class 0 12 461 0
- ------------------------------------------------- ----------- ------------- ------------- -------------
Net Asset Value, Offering and Redemption Price
Per Share (Net Assets Per Share Outstanding)
Institutional class $ 14.00 $ 11.95 $ 11.96 $ 10.48
- ------------------------------------------------- ----------- ------------- ------------- -------------
Administrative class -- 11.95 11.92 --
- ------------------------------------------------- ----------- ------------- ------------- -------------
Cost of Investments Owned 41,089 56,540 80,451 66,921
================================================= =========== ============= ============= =============
Cost of Foreign Currency Held 0 385 4,335 0
================================================= =========== ============= ============= =============
See Notes to Financial Statements
17
</TABLE>
<PAGE>
STATEMENT OF OPERATIONS
For the six months ended December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
$ in thousands Cadence
Cadence Capital Mid Cap
NFJ Equity NFJ Diversified NFJ Small Cap Appreciation Growth
Income Fund Low P/E Fund Value Fund Fund Fund
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends, net of foreign taxes $ 2,269 $ 713 $ 448 $ 2,935 $ 1,236
- --------------------------------------------- ---------- ---------- ---------- ---------- ----------
Interest 66 67 37 630 116
- --------------------------------------------- ---------- ---------- ---------- ---------- ----------
Total income 2,335 780 485 3,565 1,352
============================================= ========== ========== ========== ========== ==========
Expenses:
Investment advisory fees 279 133 108 886 506
- --------------------------------------------- ---------- ---------- ---------- ---------- ----------
Administration fees 152 71 43 489 277
- --------------------------------------------- ---------- ---------- ---------- ---------- ----------
Distribution fees - Administrative Class 8 0 6 0 1
- --------------------------------------------- ---------- ---------- ---------- ---------- ----------
Trustees' fees 3 2 1 11 6
- --------------------------------------------- ---------- ---------- ---------- ---------- ----------
Total expenses 442 206 158 1,386 790
- --------------------------------------------- ---------- ---------- ---------- ---------- ----------
Net Investment Income (Loss) 1,893 574 327 2,179 562
============================================= ========== ========== ========== ========== ==========
Net Realized and Unrealized Gain (Loss):
Net realized gain on investments 7,079 2,167 2,481 16,523 20,609
- --------------------------------------------- ---------- ---------- ---------- ---------- ----------
Net realized gain (loss) on futures contracts
and written options 0 0 0 0 0
- --------------------------------------------- ---------- ---------- ---------- ---------- ----------
Net realized loss on foreign currency
transactions 0 0 0 0 0
- --------------------------------------------- ---------- ---------- ---------- ---------- ----------
Net change in unrealized appreciation
(depreciation) on investments 3,455 3,188 2,000 32,600 7,887
- --------------------------------------------- ---------- ---------- ---------- ---------- ----------
Net change in unrealized depreciation
on futures contracts and written options 0 0 0 0 0
- --------------------------------------------- ---------- ---------- ---------- ---------- ----------
Net change in unrealized depreciation
on translation of assets and liabilities
denominated in foreign currencies 0 0 0 0 0
- --------------------------------------------- ---------- ---------- ---------- ---------- ----------
Net Gain (Loss) 10,534 5,355 4,481 49,123 28,496
- --------------------------------------------- ---------- ---------- ---------- ---------- ----------
Net Increase (Decrease) in Assets
Resulting from Operations $ 12,427 $ 5,929 $ 4,808 $ 51,302 $ 29,058
============================================= ========== ========== ========== ========== ==========
</TABLE>
See Notes to Financial Statements
18
<PAGE>
STATEMENT OF OPERATIONS
For the six months ended December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
$ in thousands
Columbus
Cadence Micro Cadence Small Columbus Circle Circle Investors
Cap Growth Cap Growth Investors Core Mid Cap Equity
Fund Fund Equity Fund Fund
----------- ----------- ----------- ----------
<S> <C> <C> <C> <C>
Investment Income:
Dividends, net of foreign taxes $ 295 $ 169 $ 214 $ 16
- -------------------------------------------- ----------- ----------- ----------- ----------
Interest 174 37 56 11
- -------------------------------------------- ----------- ----------- ----------- ----------
Total income 469 206 270 27
============================================ =========== =========== =========== ==========
Expenses:
Investment advisory fees 590 175 138 34
- -------------------------------------------- ----------- ----------- ----------- ----------
Administration fees 117 43 58 10
- -------------------------------------------- ----------- ----------- ----------- ----------
Distribution fees - Administrative Class 1 0 44 0
- -------------------------------------------- ----------- ----------- ----------- ----------
Trustees' fees 3 1 1 0
- -------------------------------------------- ----------- ----------- ----------- ----------
Total expenses 711 219 241 44
- -------------------------------------------- ----------- ----------- ----------- ----------
Net Investment Income (Loss) (242) (13) 29 (17)
============================================ =========== =========== =========== ==========
Net Realized and Unrealized Gain (Loss):
Net realized gain on investments 3,879 2,813 2,946 1,187
- -------------------------------------------- ----------- ----------- ----------- ----------
Net realized gain (loss) on futures contracts
and written options 0 0 43 0
- -------------------------------------------- ----------- ----------- ----------- ----------
Net realized loss on foreign currency
transactions 0 0 0 0
- -------------------------------------------- ----------- ----------- ----------- ----------
Net change in unrealized appreciation
(depreciation) on investments 2,993 268 582 (974)
- -------------------------------------------- ----------- ----------- ----------- ----------
Net change in unrealized depreciation
on futures contracts and written options 0 0 (4) 0
- -------------------------------------------- ----------- ----------- ----------- ----------
Net change in unrealized depreciation
on translation of assets and liabilities
denominated in foreign currencies 0 0 0 0
- -------------------------------------------- ----------- ----------- ----------- ----------
Net Gain (Loss) 6,872 3,081 3,567 213
- -------------------------------------------- ----------- ----------- ----------- ----------
Net Increase (Decrease) in Assets
Resulting from Operations $ 6,630 $ 3,068 $ 3,596 $ 196
============================================ =========== =========== =========== ==========
<CAPTION>
Parametric Blairlogie Blairlogie
Enhanced Equity Emerging International Balanced
Fund Markets Fund Active Fund Fund
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Investment Income:
Dividends, net of foreign taxes $ 863 $ 505 $ 443 $ 420
- -------------------------------------------- ----------- ----------- ----------- -----------
Interest 13 5 111 1,053
- -------------------------------------------- ----------- ----------- ----------- -----------
Total income 876 510 554 1,473
============================================ =========== =========== =========== ===========
Expenses:
Investment advisory fees 193 295 264 172
- -------------------------------------------- ----------- ----------- ----------- -----------
Administration fees 103 170 212 91
- -------------------------------------------- ----------- ----------- ----------- -----------
Distribution fees - Administrative Class 0 0 7 0
- -------------------------------------------- ----------- ----------- ----------- -----------
Trustees' fees 2 2 2 2
- -------------------------------------------- ----------- ----------- ----------- -----------
Total expenses 298 467 485 265
- -------------------------------------------- ----------- ----------- ----------- -----------
Net Investment Income (Loss) 578 43 69 1,208
============================================ =========== =========== =========== ===========
Net Realized and Unrealized Gain (Loss):
Net realized gain on investments 15,921 403 2,798 8,950
- -------------------------------------------- ----------- ----------- ----------- -----------
Net realized gain (loss) on futures contracts
and written options 0 0 (51) 512
- -------------------------------------------- ----------- ----------- ----------- -----------
Net realized loss on foreign currency
transactions 0 (80) (343) 0
- -------------------------------------------- ----------- ----------- ----------- -----------
Net change in unrealized appreciation
(depreciation) on investments (7,429) (4,462) (1,562) (4,710)
- -------------------------------------------- ----------- ----------- ----------- -----------
Net change in unrealized depreciation
on futures contracts and written options 0 0 (100) (199)
- -------------------------------------------- ----------- ----------- ----------- -----------
Net change in unrealized depreciation
on translation of assets and liabilities
denominated in foreign currencies 0 (5) (378) 0
- -------------------------------------------- ----------- ----------- ----------- -----------
Net Gain (Loss) 8,492 (4,144) 364 4,553
- -------------------------------------------- ----------- ----------- ----------- -----------
Net Increase (Decrease) in Assets
Resulting from Operations $ 9,070 $ (4,101) $ 433 $ 5,761
============================================ =========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements
19
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
----------------------------------- -----------------------------------
NFJ Diversified
$ in thousands NFJ Equity Income Fund Low P/E Fund
----------------------------------- -----------------------------------
Six Months Ended Eight Months Six Months Ended Eight Months
December 31, 1996 Ended December 31, 1996 Ended
Increase (Decrease) in Net Assets from: (unaudited) June 30, 1996 (unaudited) June 30, 1996
Operations
<S> <C> <C> <C> <C>
Net investment income (loss) $ 1,893 $ 3,220 $ 574 $ 355
- -------------------------------------------------- ----------------------------------- -----------------------------------
Net realized gain 7,079 11,596 2,167 1,115
- -------------------------------------------------- ----------------------------------- -----------------------------------
Net change in unrealized appreciation (depreciation) 3,455 6,902 3,188 1,082
- -------------------------------------------------- ----------------------------------- -----------------------------------
Net increase resulting from operations 12,427 21,718 5,929 2,552
- -------------------------------------------------- ----------------------------------- -----------------------------------
Net equalization credits (debits) 0 (222) 0 42
- -------------------------------------------------- ----------------------------------- -----------------------------------
Distributions to Shareholders
From net investment income
Institutional class (2,817) (3,065) (894) (355)
- -------------------------------------------------- ----------------------------------- -----------------------------------
Administrative class (156) (155) 0 0
- -------------------------------------------------- ----------------------------------- -----------------------------------
In excess of net investment income
Institutional class 0 (7) 0 0
- -------------------------------------------------- ----------------------------------- -----------------------------------
Administrative class 0 0 0 0
- -------------------------------------------------- ----------------------------------- -----------------------------------
From net realized capital gains
Institutional class (14,007) (4,404) (2,344) (2,045)
- -------------------------------------------------- ----------------------------------- -----------------------------------
Administrative class (850) (232) 0 0
- -------------------------------------------------- ----------------------------------- -----------------------------------
In excess of net realized capital gains
Institutional class (44) 0 0 0
- -------------------------------------------------- ----------------------------------- -----------------------------------
Administrative class (3) 0 0 0
- -------------------------------------------------- ----------------------------------- -----------------------------------
Total Distributions (17,877) (7,863) (3,238) (2,400)
- -------------------------------------------------- ----------------------------------- -----------------------------------
Fund Share Transactions
Receipts for shares sold
Institutional class 7,368 34,285 10,258 36,330
- -------------------------------------------------- ----------------------------------- -----------------------------------
Administrative class 837 6,890 0 0
- -------------------------------------------------- ----------------------------------- -----------------------------------
Issued as reinvestment of distributions
Institutional class 16,448 6,952 3,233 2,397
- -------------------------------------------------- ----------------------------------- -----------------------------------
Administrative class 1,009 387 0 0
- -------------------------------------------------- ----------------------------------- -----------------------------------
Cost of shares redeemed
Institutional class (22,544) (55,588) (5,127) (637)
- -------------------------------------------------- ----------------------------------- -----------------------------------
Administrative class (917) (1,903) 0 0
- -------------------------------------------------- ----------------------------------- -----------------------------------
Net increase (decrease) resulting from Fund
share transactions 2,201 (8,977) 8,364 38,090
- -------------------------------------------------- ----------------------------------- -----------------------------------
Total Increase (Decrease) in Net Assets (3,249) 4,656 11,055 38,284
- -------------------------------------------------- ----------------------------------- -----------------------------------
Net Assets
Beginning of period 122,811 118,155 52,727 14,443
- -------------------------------------------------- ----------------------------------- -----------------------------------
End of period * $ 119,562 $ 122,811 $ 63,782 $ 52,727
- -------------------------------------------------- ----------------------------------- -----------------------------------
*Including net undistributed (overdistributed)
investment income of: $ 2,702 $ 3,782 $ 28 $ 348
- -------------------------------------------------- ----------------------------------- -----------------------------------
<CAPTION>
-----------------------------------
$ in thousands NFJ Small Cap Value Fund
-----------------------------------
Six Months Ended Eight Months
December 31, 1996 Ended
Increase (Decrease) in Net Assets from: (unaudited) June 30, 1996
Operations
<S> <C> <C>
Net investment income (loss) $ 327 $ 544
- -------------------------------------------------- -----------------------------------
Net realized gain 2,481 3,943
- -------------------------------------------------- -----------------------------------
Net change in unrealized appreciation (depreciation) 2,000 1,415
- -------------------------------------------------- -----------------------------------
Net increase resulting from operations 4,808 5,902
- -------------------------------------------------- -----------------------------------
Net equalization credits (debits) 0 (26)
- -------------------------------------------------- -----------------------------------
Distributions to Shareholders
From net investment income
Institutional class (303) (483)
- -------------------------------------------------- -----------------------------------
Administrative class (41) (62)
- -------------------------------------------------- -----------------------------------
In excess of net investment income
Institutional class 0 (5)
- -------------------------------------------------- -----------------------------------
Administrative class 0 (1)
- -------------------------------------------------- -----------------------------------
From net realized capital gains
Institutional class (4,690) (2,049)
- -------------------------------------------------- -----------------------------------
Administrative class (700) (293)
- -------------------------------------------------- -----------------------------------
In excess of net realized capital gains
Institutional class 0 0
- -------------------------------------------------- -----------------------------------
Administrative class 0 0
- -------------------------------------------------- -----------------------------------
Total Distributions (5,734) (2,893)
- -------------------------------------------------- -----------------------------------
Fund Share Transactions
Receipts for shares sold
Institutional class 909 2,712
- -------------------------------------------------- -----------------------------------
Administrative class 478 5,755
- -------------------------------------------------- -----------------------------------
Issued as reinvestment of distributions
Institutional class 4,969 2,501
- -------------------------------------------------- -----------------------------------
Administrative class 741 355
- -------------------------------------------------- -----------------------------------
Cost of shares redeemed
Institutional class (2,843) (13,943)
- -------------------------------------------------- -----------------------------------
Administrative class (596) (2,006)
- -------------------------------------------------- -----------------------------------
Net increase (decrease) resulting from Fund
share transactions 3,658 (4,626)
- -------------------------------------------------- -----------------------------------
Total Increase (Decrease) in Net Assets 2,732 (1,643)
- -------------------------------------------------- -----------------------------------
Net Assets
Beginning of period 33,450 35,093
- -------------------------------------------------- -----------------------------------
End of period * $ 36,182 $ 33,450
- -------------------------------------------------- -----------------------------------
*Including net undistributed (overdistributed)
investment income of: $ 820 $ 837
- -------------------------------------------------- -----------------------------------
</TABLE>
See Notes to Financial Statements
20
<PAGE>
<TABLE>
<CAPTION>
----------------------------------- -----------------------------------
Cadence Capital Cadence Mid Cap
$ in thousands Appreciation Fund Growth Fund
----------------------------------- -----------------------------------
Six Months Ended Eight Months Six Months Ended Eight Months
December 31, 1996 Ended December 31, 1996 Ended
Increase (Decrease) in Net Assets from: (unaudited) June 30, 1996 (unaudited) June 30, 1996
Operations
<S> <C> <C> <C> <C>
Net investment income (loss) $ 2,179 $ 2,624 $ 562 $ 1,524
- -------------------------------------------------- ----------------------------------- -----------------------------------
Net realized gain 16,523 31,135 20,609 30,980
- -------------------------------------------------- ----------------------------------- -----------------------------------
Net change in unrealized appreciation (depreciation) 32,600 6,136 7,887 (13,220)
- -------------------------------------------------- ----------------------------------- -----------------------------------
Net increase resulting from operations 51,302 39,895 29,058 19,284
- -------------------------------------------------- ----------------------------------- -----------------------------------
Net equalization credits (debits) 0 214 0 59
- -------------------------------------------------- ----------------------------------- -----------------------------------
Distributions to Shareholders
From net investment income
Institutional class (2,203) (2,624) (604) (1,518)
- -------------------------------------------------- ----------------------------------- -----------------------------------
Administrative class (7) 0 (2) (6)
- -------------------------------------------------- ----------------------------------- -----------------------------------
In excess of net investment income
Institutional class 0 0 0 (2)
- -------------------------------------------------- ----------------------------------- -----------------------------------
Administrative class 0 0 0 0
- -------------------------------------------------- ----------------------------------- -----------------------------------
From net realized capital gains
Institutional class (43,603) (15,492) (43,529) (4,245)
- -------------------------------------------------- ----------------------------------- -----------------------------------
Administrative class (128) 0 (258) (21)
- -------------------------------------------------- ----------------------------------- -----------------------------------
In excess of net realized capital gains
Institutional class (438) 0 0 0
- -------------------------------------------------- ----------------------------------- -----------------------------------
Administrative class (1) 0 0 0
- -------------------------------------------------- ----------------------------------- -----------------------------------
Total Distributions (46,380) (18,116) (44,393) (5,792)
- -------------------------------------------------- ----------------------------------- -----------------------------------
Fund Share Transactions
Receipts for shares sold
Institutional class 74,517 93,460 17,200 65,496
- -------------------------------------------------- ----------------------------------- -----------------------------------
Administrative class 1,365 0 212 266
- -------------------------------------------------- ----------------------------------- -----------------------------------
Issued as reinvestment of distributions
Institutional class 36,551 15,598 42,944 5,548
- -------------------------------------------------- ----------------------------------- -----------------------------------
Administrative class 136 0 261 27
- -------------------------------------------------- ----------------------------------- -----------------------------------
Cost of shares redeemed
Institutional class (48,927) (18,543) (50,620) (42,836)
- -------------------------------------------------- ----------------------------------- -----------------------------------
Administrative class (47) 0 (101) (182)
- -------------------------------------------------- ----------------------------------- -----------------------------------
Net increase (decrease) resulting from Fund
share transactions 63,595 90,515 9,896 28,319
- -------------------------------------------------- ----------------------------------- -----------------------------------
Total Increase (Decrease) in Net Assets 68,517 112,508 (5,439) 41,870
- -------------------------------------------------- ----------------------------------- -----------------------------------
Net Assets
Beginning of period 348,728 236,220 232,082 190,212
- -------------------------------------------------- ----------------------------------- -----------------------------------
End of period * $ 417,245 $ 348,728 $ 226,643 $ 232,082
- -------------------------------------------------- ----------------------------------- -----------------------------------
*Including net undistributed (overdistributed)
investment income of: $ 3,891 $ 3,922 $ 2,085 $ 2,129
- -------------------------------------------------- ----------------------------------- -----------------------------------
<CAPTION>
----------------------------------- -----------------------------------
Cadence Micro Cap Cadence Small Cap
$ in thousands Growth Fund Growth Fund
----------------------------------- -----------------------------------
Six Months Ended Eight Months Six Months Ended Eight Months
December 31, 1996 Ended December 31, 1996 Ended
Increase (Decrease) in Net Assets from: (unaudited) June 30, 1996 (unaudited) June 30, 1996
<S> <C> <C> <C> <C>
Operations
Net investment income (loss) $ (242) $ (244) $ (13) $ (86)
- -------------------------------------------------- ----------------------------------- -----------------------------------
Net realized gain 3,879 8,951 2,813 15,949
- -------------------------------------------------- ----------------------------------- -----------------------------------
Net change in unrealized appreciation (depreciation) 2,993 8,025 268 (11,349)
- -------------------------------------------------- ----------------------------------- -----------------------------------
Net increase resulting from operations 6,630 16,732 3,068 4,514
- -------------------------------------------------- ----------------------------------- -----------------------------------
Net equalization credits (debits) 0 0 0 0
- -------------------------------------------------- ----------------------------------- -----------------------------------
Distributions to Shareholders
From net investment income
Institutional class 0 0 0 0
- -------------------------------------------------- ----------------------------------- -----------------------------------
Administrative class 0 0 0 0
- -------------------------------------------------- ----------------------------------- -----------------------------------
In excess of net investment income
Institutional class 0 0 0 0
- -------------------------------------------------- ----------------------------------- -----------------------------------
Administrative class 0 0 0 0
- -------------------------------------------------- ----------------------------------- -----------------------------------
From net realized capital gains
Institutional class (11,396) (1,543) (15,462) (5,641)
- -------------------------------------------------- ----------------------------------- -----------------------------------
Administrative class (122) 0 (9) (55)
- -------------------------------------------------- ----------------------------------- -----------------------------------
In excess of net realized capital gains
Institutional class 0 0 (1,749) 0
- -------------------------------------------------- ----------------------------------- -----------------------------------
Administrative class 0 0 (1) 0
- -------------------------------------------------- ----------------------------------- -----------------------------------
Total Distributions (11,518) (1,543) (17,221) (5,696)
- -------------------------------------------------- ----------------------------------- -----------------------------------
Fund Share Transactions
Receipts for shares sold
Institutional class 24,567 21,977 5,578 4,731
- -------------------------------------------------- ----------------------------------- -----------------------------------
Administrative class 1,022 707 0 437
- -------------------------------------------------- ----------------------------------- -----------------------------------
Issued as reinvestment of distributions
Institutional class 9,931 1,379 12,306 4,655
- -------------------------------------------------- ----------------------------------- -----------------------------------
Administrative class 122 0 10 55
- -------------------------------------------------- ----------------------------------- -----------------------------------
Cost of shares redeemed
Institutional class (3,925) (24,322) (4,686) (49,237)
- -------------------------------------------------- ----------------------------------- -----------------------------------
Administrative class (470) (166) (100) (914)
- -------------------------------------------------- ----------------------------------- -----------------------------------
Net increase (decrease) resulting from Fund
share transactions 31,247 (425) 13,108 (40,273)
- -------------------------------------------------- ----------------------------------- -----------------------------------
Total Increase (Decrease) in Net Assets 26,359 14,764 (1,045) (41,455)
- -------------------------------------------------- ----------------------------------- -----------------------------------
Net Assets
Beginning of period 84,539 69,775 33,066 74,521
- -------------------------------------------------- ----------------------------------- -----------------------------------
End of period * 110,898 84,539 32,021 33,066
- -------------------------------------------------- ----------------------------------- -----------------------------------
*Including net undistributed (overdistributed)
investment income of: $ (242) $ 0 $ 3,189 $ 3,202
- -------------------------------------------------- ----------------------------------- -----------------------------------
</TABLE>
See Notes to Financial Statements
21
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (Cont.)
<TABLE>
<CAPTION>
---------------------------------- ------------------------------------
$ in thousands Columbus Circle Investors Columbus Circle Investors
Core Equity Fund Mid Cap Equity Fund
---------------------------------- ------------------------------------
Six Months Ended Eight Months Six Months Ended Eight Months
December 31, 1996 Ended December 31, 1996 Ended
Increase (Decrease) in Net Assets from: (unaudited) June 30, 1996 (unaudited) June 30, 1996
Operations
<S> <C> <C> <C> <C>
Net investment income (loss) $ 29 $ 87 $ (17) $ (18)
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Net realized gain 2,989 1,584 1,187 471
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Net change in unrealized appreciation (depreciation) 578 1,689 (974) 853
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Net increase (decrease) resulting from operations 3,596 3,360 196 1,306
===================================================== ================================== ====================================
Net equalization credits (debits) 0 21 0 (1)
===================================================== ================================== ====================================
Distributions to Shareholders
From net investment income
Institutional class (20) (29) 0 0
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Administrative class (18) (58) 0 0
- ----------------------------------------------------- ---------------------------------- ------------------------------------
In excess of net investment income
Institutional class 0 (9) 0 0
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Administrative class 0 (18) 0 0
- ----------------------------------------------------- ---------------------------------- ------------------------------------
From net realized capital gains
Institutional class (616) (180) (1,084) (243)
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Administrative class (1,860) (577) 0 0
- ----------------------------------------------------- ---------------------------------- ------------------------------------
In excess of net realized capital gains
Institutional class 0 0 0 0
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Administrative class 0 0 0 0
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Total Distributions (2,514) (871) (1,084) (243)
===================================================== ================================== ====================================
Fund Share Transactions
Receipts for shares sold
Institutional class 511 2,105 242 474
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Administrative class 6,535 17,158 0 0
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Issued as reinvestment of distributions
Institutional class 286 73 263 82
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Administrative class 1,878 652 0 0
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Cost of shares redeemed
Institutional class (385) (118) (91) (1,597)
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Administrative class (8,447) (10,789) 0 0
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Net increase (decrease) resulting from Fund
share transactions 378 9,081 414 (1,041)
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Total Increase (Decrease) in Net Assets 1,460 11,591 (474) 21
===================================================== ================================== ====================================
Net Assets
Beginning of period 44,027 32,436 8,378 8,357
- ----------------------------------------------------- ---------------------------------- ------------------------------------
End of period * $ 45,487 $ 44,027 $ 7,904 $ 8,378
- ----------------------------------------------------- ---------------------------------- ------------------------------------
*Including net undistributed (overdistributed)
investment income of: $ 1,489 $ 1,498 $ 263 $ 280
===================================================== ================================== ====================================
<CAPTION>
----------------------------------
$ in thousands Parametric Enhanced
Equity Fund
----------------------------------
Six Months Ended Eight Months
December 31, 1996 Ended
Increase (Decrease) in Net Assets from: (unaudited) June 30, 1996
<S> <C> <C>
Operations
Net investment income (loss) $ 578 $ 958
- ----------------------------------------------------- ----------------------------------
Net realized gain 15,921 11,972
- ----------------------------------------------------- ----------------------------------
Net change in unrealized appreciation (depreciation) (7,429) (909)
- ----------------------------------------------------- ----------------------------------
Net increase (decrease) resulting from operations 9,070 12,021
===================================================== ==================================
Net equalization credits (debits) 0 10
===================================================== ==================================
Distributions to Shareholders
From net investment income
Institutional class (613) (958)
- ----------------------------------------------------- ----------------------------------
Administrative class 0 0
- ----------------------------------------------------- ----------------------------------
In excess of net investment income
Institutional class 0 0
- ----------------------------------------------------- ----------------------------------
Administrative class 0 0
- ----------------------------------------------------- ----------------------------------
From net realized capital gains
Institutional class (16,690) (2,327)
- ----------------------------------------------------- ----------------------------------
Administrative class 0 0
- ----------------------------------------------------- ----------------------------------
In excess of net realized capital gains
Institutional class 0 0
- ----------------------------------------------------- ----------------------------------
Administrative class 0 0
- ----------------------------------------------------- ----------------------------------
Total Distributions (17,303) (3,285)
===================================================== ==================================
Fund Share Transactions
Receipts for shares sold
Institutional class 8,875 44,945
- ----------------------------------------------------- ----------------------------------
Administrative class 0 0
- ----------------------------------------------------- ----------------------------------
Issued as reinvestment of distributions
Institutional class 17,302 3,136
- ----------------------------------------------------- ----------------------------------
Administrative class 0 0
- ----------------------------------------------------- ----------------------------------
Cost of shares redeemed
Institutional class (53,065) (47,401)
- ----------------------------------------------------- ----------------------------------
Administrative class 0 0
- ----------------------------------------------------- ----------------------------------
Net increase (decrease) resulting from Fund
share transactions (26,888) 680
- ----------------------------------------------------- ----------------------------------
Total Increase (Decrease) in Net Assets (35,121) 9,426
===================================================== ==================================
Net Assets
Beginning of period 83,425 73,999
- ----------------------------------------------------- ----------------------------------
End of period * $ 48,304 $ 83,425
- ----------------------------------------------------- ----------------------------------
*Including net undistributed (overdistributed)
investment income of: $ 919 $ 954
===================================================== ==================================
</TABLE>
See Notes to Financial Statements
22
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (Cont.)
<TABLE>
<CAPTION>
---------------------------------- ------------------------------------
$ in thousands Blairlogie Emerging Blairlogie International
Markets Fund Active Fund
---------------------------------- ------------------------------------
Six Months Ended Eight Months Six Months Ended Eight Months
December 31, 1996 Ended December 31, 1996 Ended
Increase (Decrease) in Net Assets from: (unaudited) June 30, 1996 (unaudited) June 30, 1996
<S> <C> <C> <C> <C>
Operations
Net investment income (loss) $ 43 $ 434 $ 69 $ 399
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Net realized gain 323 1,358 2,404 2,749
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Net change in unrealized appreciation (depreciation) (4,467) 7,303 (2,040) 5,113
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Net increase (decrease) resulting from operations (4,101) 9,095 433 8,261
===================================================== ================================== ====================================
Net equalization credits (debits) 0 (4) 0 62
===================================================== ================================== ====================================
Distributions to Shareholders
From net investment income
Institutional class (10) (236) 0 (382)
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Administrative class 0 (3) 0 (4)
- ----------------------------------------------------- ---------------------------------- ------------------------------------
In excess of net investment income
Institutional class (300) 0 0 (1,896)
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Administrative class 0 0 0 (21)
- ----------------------------------------------------- ---------------------------------- ------------------------------------
From net realized capital gains
Institutional class 0 0 (3,410) (1,127)
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Administrative class 0 0 (208) (13)
- ----------------------------------------------------- ---------------------------------- ------------------------------------
In excess of net realized capital gains
Institutional class 0 0 (779) 0
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Administrative class 0 0 (47) 0
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Total Distributions (310) (239) (4,444) (3,443)
===================================================== ================================== ====================================
Fund Share Transactions
Receipts for shares sold
Institutional class 5,700 32,382 28,193 14,180
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Administrative class 305 387 1,169 5,259
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Issued as reinvestment of distributions
Institutional class 222 174 3,449 2,171
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Administrative class 0 3 255 38
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Cost of shares redeemed
Institutional class (22,958) (34,303) (12,004) (14,496)
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Administrative class (501) (951) (1,319) (483)
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Net increase (decrease) resulting from Fund
share transactions (17,232) (2,308) 19,743 6,669
- ----------------------------------------------------- ---------------------------------- ------------------------------------
Total Increase (Decrease) in Net Assets (21,643) 6,544 15,732 11,549
===================================================== ================================== ====================================
Net Assets
Beginning of period 80,913 74,369 75,831 64,282
- ----------------------------------------------------- ---------------------------------- ------------------------------------
End of period * $ 59,270 $ 80,913 $ 91,563 $ 75,831
- ----------------------------------------------------- ---------------------------------- ------------------------------------
*Including net undistributed (overdistributed)
investment income of: $ (300) $ (33) $ 2,005 $ 1,936
===================================================== ================================== ====================================
<CAPTION>
----------------------------------
$ in thousands Balanced Fund
----------------------------------
Six Months Ended Eight Months
December 31, 1996 Ended
Increase (Decrease) in Net Assets from: (unaudited) June 30, 1996
<S> <C> <C>
Operations
Net investment income (loss) $ 1,208 $ 1,802
- ----------------------------------------------------- ----------------------------------
Net realized gain 9,462 1,778
- ----------------------------------------------------- ----------------------------------
Net change in unrealized appreciation (depreciation) (4,909) 3,088
- ----------------------------------------------------- ----------------------------------
Net increase (decrease) resulting from operations 5,761 6,668
===================================================== ==================================
Net equalization credits (debits) 0 0
===================================================== ==================================
Distributions to Shareholders
From net investment income
Institutional class (1,208) (1,802)
- ----------------------------------------------------- ----------------------------------
Administrative class 0 0
- ----------------------------------------------------- ----------------------------------
In excess of net investment income
Institutional class (24) 0
- ----------------------------------------------------- ----------------------------------
Administrative class 0 0
- ----------------------------------------------------- ----------------------------------
From net realized capital gains
Institutional class (10,061) (6,227)
- ----------------------------------------------------- ----------------------------------
Administrative class 0 0
- ----------------------------------------------------- ----------------------------------
In excess of net realized capital gains
Institutional class 0 0
- ----------------------------------------------------- ----------------------------------
Administrative class 0 0
- ----------------------------------------------------- ----------------------------------
Total Distributions (11,293) (8,029)
===================================================== ==================================
Fund Share Transactions
Receipts for shares sold
Institutional class 7,406 9,459
- ----------------------------------------------------- ----------------------------------
Administrative class 0 0
- ----------------------------------------------------- ----------------------------------
Issued as reinvestment of distributions
Institutional class 11,285 8,025
- ----------------------------------------------------- ----------------------------------
Administrative class 0 0
- ----------------------------------------------------- ----------------------------------
Cost of shares redeemed
Institutional class (32,284) (6,199)
- ----------------------------------------------------- ----------------------------------
Administrative class 0 0
- ----------------------------------------------------- ----------------------------------
Net increase (decrease) resulting from Fund
share transactions (13,593) 11,285
- ----------------------------------------------------- ----------------------------------
Total Increase (Decrease) in Net Assets (19,125) 9,924
===================================================== ==================================
Net Assets
Beginning of period 82,562 72,638
- ----------------------------------------------------- ----------------------------------
End of period * $ 63,437 $ 82,562
- ----------------------------------------------------- ----------------------------------
*Including net undistributed (overdistributed)
investment income of: $ (24) $ 0
===================================================== ==================================
</TABLE>
See Notes to Financial Statements
23
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
------------ ------------ ------------ ------------
Selected Per Share Data Net Realized/
for the Year or Period Ended: Net Asset Net Unrealized Total Income
Value Investment Gain from
Beginning of Income (Loss) on Investment
Period (Loss) Investments Operations
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
NFJ Equity Income Fund
Institutional Class
12/31/96 (a) $ 14.36 $ 0.22 $ 1.30 $ 1.52
- ---------------------------------------------- ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 13.09 0.78 1.31 2.09
- ---------------------------------------------- ------------ ------------ ------------ ------------
10/31/95 11.75 0.46 1.67 2.13
- ---------------------------------------------- ------------ ------------ ------------ ------------
10/31/94 11.95 0.42 (0.16) 0.26
- ---------------------------------------------- ------------ ------------ ------------ ------------
10/31/93 10.92 0.40 1.40 1.80
- ---------------------------------------------- ------------ ------------ ------------ ------------
10/31/92 10.77 0.45 0.93 1.38
- ---------------------------------------------- ------------ ------------ ------------ ------------
03/08/91 - 10/31/91 10.00 0.24 0.92 1.16
- ---------------------------------------------- ------------ ------------ ------------ ------------
Administrative Class
12/31/96 (a) 14.35 0.22 (b) 1.30 (b) 1.52
- ---------------------------------------------- ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 13.13 0.75 1.31 2.06
- ---------------------------------------------- ------------ ------------ ------------ ------------
11/30/94 - 10/31/95 11.12 0.39 2.35 2.74
- ---------------------------------------------- ------------ ------------ ------------ ------------
NFJ Diversified Low P/E Fund
Institutional Class
12/31/96 (a) $ 12.46 $ 0.11 $ 1.16 $ 1.27
- ---------------------------------------------- ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 12.53 0.25 1.62 1.87
- ---------------------------------------------- ------------ ------------ ------------ ------------
10/31/95 11.55 0.30 2.18 2.48
- ---------------------------------------------- ------------ ------------ ------------ ------------
10/31/94 11.92 0.30 (0.28) 0.02
- ---------------------------------------------- ------------ ------------ ------------ ------------
10/31/93 10.05 0.28 2.36 2.64
- ---------------------------------------------- ------------ ------------ ------------ ------------
12/30/91 - 10/31/92 10.00 0.24 0.23 0.47
- ---------------------------------------------- ------------ ------------ ------------ ------------
NFJ Small Cap Value Fund
Institutional Class
12/31/96 (a) $ 14.20 $ 0.09 $ 1.96 $ 2.05
- ---------------------------------------------- ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 13.10 0.56 1.49 2.05
- ---------------------------------------------- ------------ ------------ ------------ ------------
10/31/95 12.07 0.28 1.92 2.20
- ---------------------------------------------- ------------ ------------ ------------ ------------
10/31/94 12.81 0.29 (0.65) (0.36)
- ---------------------------------------------- ------------ ------------ ------------ ------------
10/31/93 10.98 0.24 2.33 2.57
- ---------------------------------------------- ------------ ------------ ------------ ------------
10/31/92 10.09 0.22 1.17 1.39
- ---------------------------------------------- ------------ ------------ ------------ ------------
10/01/91 - 10/31/91 10.00 0.02 0.10 0.12
- ---------------------------------------------- ------------ ------------ ------------ ------------
Administrative Class
12/31/96 (a) 14.20 0.07(b) 1.96(b) 2.03
- ---------------------------------------------- ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 13.16 0.54 1.43 1.97
- ---------------------------------------------- ------------ ------------ ------------ ------------
Cadence Capital Appreciation Fund
Institutional Class
12/31/96 (a) $ 18.10 $ 0.07 $ 2.40 $ 2.47
- ---------------------------------------------- ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 16.94 0.35 1.99 2.34
- ---------------------------------------------- ------------ ------------ ------------ ------------
10/31/95 13.34 0.18 3.60 3.78
- ---------------------------------------------- ------------ ------------ ------------ ------------
10/31/94 13.50 0.14 (0.12) 0.02
- ---------------------------------------------- ------------ ------------ ------------ ------------
10/31/93 11.27 0.11 2.73 2.84
- ---------------------------------------------- ------------ ------------ ------------ ------------
10/31/92 11.02 0.14 1.05 1.19
- ---------------------------------------------- ------------ ------------ ------------ ------------
03/08/91 - 10/31/91 10.00 0.09 1.02 1.11
- ---------------------------------------------- ------------ ------------ ------------ ------------
Administrative Class
07/31/96 - 12/31/96 (a) 17.19 (0.16) 3.51 3.35
- ---------------------------------------------- ------------ ------------ ------------ ------------
<CAPTION>
------------ ------------- -------------
Dividends Distributions Distributions
from Net from Net in Excess of
Investment Realized Net Realized
Income Capital Gains Capital Gains
------------ ------------- -------------
<S> <C> <C> <C>
NFJ Equity Income Fund
Institutional Class
12/31/96 (a) $ (0.35) $ (1.96) $ (0.01)
- ---------------------------------------------- ------------ ------------ ----------
11/01/95 - 06/30/96 (0.34) (0.48) 0.00
- ---------------------------------------------- ------------ ------------ ----------
10/31/95 (0.46) (0.33) 0.00
- ---------------------------------------------- ------------ ------------ ----------
10/31/94 (0.42) (0.04) 0.00
- ---------------------------------------------- ------------ ------------ ----------
10/31/93 (0.40) (0.37) 0.00
- ---------------------------------------------- ------------ ------------ ----------
10/31/92 (0.43) (0.57) 0.00
- ---------------------------------------------- ------------ ------------ ----------
03/08/91 - 10/31/91 (0.24) (0.15) 0.00
- ---------------------------------------------- ------------ ------------ ----------
Administrative Class
12/31/96 (a) (0.34) (1.96) (0.01)
- ---------------------------------------------- ------------ ------------ ----------
11/01/95 - 06/30/96 (0.36) (0.48) 0.00
- ---------------------------------------------- ------------ ------------ ----------
11/30/94 - 10/31/95 (0.40) (0.33) 0.00
- ---------------------------------------------- ------------ ------------ ----------
NFJ Diversified Low P/E Fund
Institutional Class
12/31/96 (a) $ (0.19) $ (0.50) $ 0.00
- ---------------------------------------------- ------------ ------------ ----------
11/01/95 - 06/30/96 (0.17) (1.77) 0.00
- ---------------------------------------------- ------------ ------------ ----------
10/31/95 (0.30) (1.20) 0.00
- ---------------------------------------------- ------------ ------------ ----------
10/31/94 (0.29) (0.10) 0.00
- ---------------------------------------------- ------------ ------------ ----------
10/31/93 (0.28) (0.49) 0.00
- ---------------------------------------------- ------------ ------------ ----------
12/30/91 - 10/31/92 (0.24) (0.18) 0.00
- ---------------------------------------------- ------------ ------------ ----------
NFJ Small Cap Value Fund
Institutional Class
12/31/96 (a) $ (0.13) $ (2.38) $ 0.00
- ---------------------------------------------- ------------ ------------ ----------
11/01/95 - 06/30/96 (0.21) (0.74) 0.00
- ---------------------------------------------- ------------ ------------ ----------
10/31/95 (0.28) (0.89) 0.00
- ---------------------------------------------- ------------ ------------ ----------
10/31/94 (0.29) (0.09) 0.00
- ---------------------------------------------- ------------ ------------ ----------
10/31/93 (0.24) (0.50) 0.00
- ---------------------------------------------- ------------ ------------ ----------
10/31/92 (0.22) (0.24) 0.00
- ---------------------------------------------- ------------ ------------ ----------
10/01/91 - 10/31/91 (0.03) 0.00 0.00
- ---------------------------------------------- ------------ ------------ ----------
Administrative Class
12/31/96 (a) (0.12) (2.38) 0.00
- ---------------------------------------------- ------------ ------------ ----------
11/01/95 - 06/30/96 (0.19) (0.74) 0.00
- ---------------------------------------------- ------------ ------------ ----------
Cadence Capital Appreciation Fund
Institutional Class
12/31/96 (a) $ (0.10) $ (2.11) $ (0.02)
- ---------------------------------------------- ------------ ------------ ----------
11/01/95 - 06/30/96 (0.15) (1.03) 0.00
- ---------------------------------------------- ------------ ------------ ----------
10/31/95 (0.18) 0.00 0.00
- ---------------------------------------------- ------------ ------------ ----------
10/31/94 (0.14) (0.04) 0.00
- ---------------------------------------------- ------------ ------------ ----------
10/31/93 (0.11) (0.50) 0.00
- ---------------------------------------------- ------------ ------------ ----------
10/31/92 (0.14) (0.72) 0.00
- ---------------------------------------------- ------------ ------------ ----------
03/08/91 - 10/31/91 (0.09) 0.00 0.00
- ---------------------------------------------- ------------ ------------ ----------
Administrative Class
07/31/96 - 12/31/96 (a) (0.09) (2.11) (0.02)
- ---------------------------------------------- ------------ ------------ ----------
</TABLE>
* Annualized
(a) Unaudited
(b) Per share amounts based on average number of shares outstanding during the
Period.
Periods ended prior to 06/30/96 were audited by other independent accountants.
See Notes to Financial Statements.
24
<PAGE>
<TABLE>
<CAPTION>
------------- ------------- ------------ ------------ ------------- ----------- ------------ --------- -----------
Ratio of Net
Ratio of Investment
Distributions Net Asset Net Assets Expenses to Income to Portfolio Average
from Total Value End of End of Period Average Net Average Net Turnover Commission
Equalization Distributions Period Total Return (000's) Assets Assets Rate Rate
------------- ------------- ------------ ------------ ------------- ------------ ------------ --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 0.00 $ (2.32) $ 13.56 10.91% $ 112,877 0.72%* 3.16%* 7.99% $ 0.06
--------- --------- --------- --------- ----------- ----------- --------- --------- ---------
0.00 (0.82) 14.36 16.35 116,714 0.70* 3.41* 52.30 0.06
--------- --------- --------- --------- ----------- ----------- --------- --------- ---------
0.00 (0.79) 13.09 19.36 118,015 0.70 3.83 46.49 0.06
--------- --------- --------- --------- ----------- ----------- --------- --------- ---------
0.00 (0.46) 11.75 2.25 92,365 0.70 3.77 35.56
--------- --------- --------- --------- ----------- ----------- --------- ---------
0.00 (0.77) 11.95 16.65 67,854 0.70 3.55 38.60
--------- --------- --------- --------- ----------- ----------- --------- ---------
(0.23) (1.23) 10.92 12.89 30,506 0.70 3.83 46.74
--------- --------- --------- --------- ----------- ----------- --------- ---------
0.00 (0.39) 10.77 11.81 15,628 0.74* 4.18* 61.51
--------- --------- --------- --------- ----------- ----------- --------- ---------
0.00 (2.31) 13.56 10.86 6,685 0.97* 2.90* 7.99 0.06
--------- --------- --------- --------- ----------- ----------- --------- --------- ---------
0.00 (0.84) 14.35 16.08 6,097 0.95* 3.19* 52.30 0.06
--------- --------- --------- --------- ----------- ----------- --------- --------- ---------
0.00 (0.73) 13.13 25.69 140 0.95* 3.43* 43.27 N/A
--------- --------- --------- --------- ----------- ----------- --------- --------- ---------
$ 0.00 $ (0.69) $ 13.04 10.32% $ 63,782 0.73%* 2.05%* 26.71% $ 0.06
--------- --------- --------- --------- ----------- ----------- --------- --------- ---------
0.00 (1.94) 12.46 16.24 52,727 0.70* 2.40* 28.53 0.06
--------- --------- --------- --------- ----------- ----------- --------- --------- ---------
0.00 (1.50) 12.53 24.98 14,443 0.70 2.50 71.02 0.06
--------- --------- --------- --------- ----------- ----------- --------- --------- ---------
0.00 (0.39) 11.55 0.15 15,442 0.70 2.34 43.70
--------- --------- --------- --------- ----------- ----------- --------- ---------
0.00 (0.77) 11.92 26.35 22,930 0.70 2.43 28.19
--------- --------- --------- --------- ----------- ----------- --------- ---------
0.00 (0.42) 10.05 4.68 18,083 0.70* 2.57* 72.77
--------- --------- --------- --------- ----------- ----------- --------- ---------
$ 0.00 $ (2.51) $ 13.74 14.92% $ 31,238 0.90%* 1.96%* 21.67% $ 0.06
--------- --------- --------- --------- ----------- ----------- --------- --------- ---------
0.00 (0.95) 14.20 16.35 29,017 0.85* 2.12* 35.21 0.04
--------- --------- --------- --------- ----------- ----------- --------- --------- ---------
0.00 (1.17) 13.10 19.88 35,093 0.85 2.25 49.57 0.04
--------- --------- --------- --------- ----------- ----------- --------- --------- ---------
0.00 (0.38) 12.07 (2.89) 31,236 0.85 2.23 48.12
--------- --------- --------- --------- ----------- ----------- --------- ---------
0.00 (0.74) 12.81 23.60 46,523 0.85 2.05 41.80
--------- --------- --------- --------- ----------- ----------- --------- ---------
(0.04) (0.50) 10.98 13.75 18,261 0.85 2.16 26.77
--------- --------- --------- --------- ----------- ----------- --------- ---------
0.00 (0.03) 10.09 1.19 5,060 1.09* 3.06* 0.00
--------- --------- --------- --------- ----------- ----------- --------- ---------
0.00 (2.50) 13.73 14.74 4,944 1.15* 1.71* 21.67 $ 0.06
--------- --------- --------- --------- ----------- ----------- --------- --------- ---------
0.00 (0.93) 14.20 15.64 4,433 1.10* 1.86* 35.21 0.04
--------- --------- --------- --------- ----------- ----------- --------- --------- ---------
$ 0.00 $ (2.23) $ 18.34 13.83% $ 415,914 0.71%* 1.12%* 35.13% $ 0.06
--------- --------- --------- --------- ----------- ----------- --------- --------- ---------
0.00 (1.18) 18.10 14.65 348,728 0.70* 1.33* 73.48 0.04
--------- --------- --------- --------- ----------- ----------- --------- --------- ---------
0.00 (0.18) 16.94 28.47 236,220 0.70 1.22 82.69 0.05
--------- --------- --------- --------- ----------- ----------- --------- --------- ---------
0.00 (0.18) 13.34 0.15 165,441 0.70 1.17 76.75
--------- --------- --------- --------- ----------- ----------- --------- ---------
0.00 (0.61) 13.50 25.30 84,990 0.70 0.94 81.15
--------- --------- --------- --------- ----------- ----------- --------- ---------
(0.08) (0.94) 11.27 10.75 36,334 0.70 1.13 134.17
--------- --------- --------- --------- ----------- ----------- --------- ---------
0.00 (0.09) 11.02 11.19 18,813 0.75* 1.55* 40.54
--------- --------- --------- --------- ----------- ----------- --------- ---------
0.00 (2.22) 18.32 19.70 1,331 0.98* 0.55* 35.13 0.06
--------- --------- --------- --------- ----------- ----------- --------- --------- ---------
</TABLE>
25
<PAGE>
FINANCIAL HIGHLIGHTS (Cont.)
<TABLE>
<CAPTION>
Selected Per Share Data Net Realized/
for the Year or Period Ended: Net Asset Net Unrealized Total Income Dividends Dividends in Distributions
Value Investment Gain from from Net Excess of Net from Net
Beginning of Income (Loss) on Investment Investment Investment Realized
Period (Loss) Investments Operations Income Income Capital Gains
<S> <C> <C> <C> <C> <C> <C> <C>
Cadence Mid Cap Growth Fund
Institutional Class
12/31/96 (a) $ 19.44 $ 0.03 $ 2.69 $ 2.72 $ (0.05) $ 0.00 $ (4.30)
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
11/01/95 - 06/30/96 18.16 0.32 1.53 1.85 (0.14) 0.00 (0.43)
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
10/31/95 13.97 0.07 4.19 4.26 (0.07) 0.00 0.00
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
10/31/94 13.97 0.06 0.01 0.07 (0.06) 0.00 (0.01)
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
10/31/93 11.29 0.07 2.70 2.77 (0.07) 0.00 (0.02)
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
10/31/92 10.28 0.10 1.03 1.13 (0.10) 0.00 0.00
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
08/26/91 - 10/31/91 10.00 0.02 0.27 0.29 (0.01) 0.00 0.00
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
Administrative Class
12/31/96 (a) 19.44 0.00 2.69 2.69 (0.03) 0.00 (4.30)
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
11/01/95 - 06/30/96 18.17 0.28 1.53 1.81 (0.11) 0.00 (0.43)
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
11/30/94 - 10/31/95 13.31 0.03 4.85 4.88 (0.02) 0.00 0.00
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
Cadence Micro Cap Growth Fund
Institutional Class
12/31/96 (a) $ 18.47 $ (0.04) $ 1.17 $ 1.13 $ 0.00 $ 0.00 $ (2.03)
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
11/01/95 - 06/30/96 15.38 0.00 3.43 3.43 0.00 0.00 (0.34)
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
10/31/95 11.87 (0.04) 3.55 3.51 0.00 0.00 0.00
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
10/31/94 11.06 (0.03) 0.84 0.81 0.00 0.00 0.00
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
06/25/93 - 10/31/93 10.00 0.00 1.07 1.07 0.00 0.00 0.00
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
Administrative Class
12/31/96 (a) 18.46 (0.07) 1.17 1.10 0.00 0.00 (2.03)
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
04/01/96 - 06/30/96 16.73 0.03 1.70 1.73 0.00 0.00 0.00
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
Cadence Small Cap Growth Fund
Institutional Class
12/31/96 (a) $ 20.83 $ (0.83) $ 2.57 $ 1.74 $ 0.00 $ 0.00 $ (9.52)
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
11/01/95 - 06/30/96 21.02 2.02 (0.61) 1.41 0.00 0.00 (1.60)
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
10/31/95 19.38 (0.05) 3.12 3.07 0.00 0.00 (1.43)
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
10/31/94 19.15 (0.02) 0.89 0.87 0.00 0.00 (0.64)
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
10/31/93 15.80 (0.06) 6.19 6.13 0.00 0.00 (2.78)
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
10/31/92 14.87 0.01 1.50 1.51 (0.01) 0.00 (0.57)
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
01/07/91 - 10/31/91 10.00 0.02 5.03 5.05 (0.02) 0.00 (0.16)
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
Administrative Class
12/31/96 (a) 20.82 (0.86)(b) 2.57 (b) 1.71 0.00 0.00 (9.52)
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
11/01/95 - 06/30/96 21.01 2.02 (b) (0.61)(b) 1.41 0.00 0.00 (1.60)
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
09/27/95 - 10/31/95 21.90 (0.02) (0.87) (0.89) 0.00 0.00 0.00
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
Columbus Circle Investors Core
Equity Fund Institutional Class
12/31/96 (a) $ 13.55 $ 0.00 $ 1.08 $ 1.08 $ (0.03) $ 0.00 $ (0.79)
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
11/01/95 - 06/30/96 12.72 0.51 0.65 1.16 (0.04) (0.01) (0.28)
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
12/28/94 - 10/31/95 10.00 0.07 2.71 2.78 (0.06) 0.00 0.00
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
Administrative Class
12/31/96 (a) 13.56 (0.02) 1.08 1.06 (0.01) 0.00 (0.79)
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
11/01/95 - 06/30/96 12.73 0.49 0.65 1.14 (0.02) (0.01) (0.28)
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
05/31/95 - 10/31/95 11.45 0.02 1.28 1.30 (0.02) 0.00 0.00
- ----------------------------------- --------- ---------- ---------- --------- ---------- --------- -----------
</TABLE>
* Annualized
(a) Unaudited
(b) Per share amounts based on average number of shares outstanding during the
period.
Periods ended prior to 06/30/96 were audited by other independent accountants.
See Notes to Financial Statements.
26
<PAGE>
<TABLE>
<CAPTION>
Selected Per Share Data
for the Year or Period Ended: Distributions
in Excess of Distributions Tax Basis Net Asset
Net Realized from Return of Total Value End of
Capital Gains Equalization Capital Distributions Period Total Return
<S> <C> <C> <C> <C> <C> <C>
Cadence Mid Cap Growth Fund
Institutional Class
12/31/96 (a) $ 0.00 $ 0.00 $ 0.00 $ (4.35) $ 17.81 14.68%
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
11/01/95 - 06/30/96 0.00 0.00 0.00 (0.57) 19.44 10.37
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
10/31/95 0.00 0.00 0.00 (0.07) 18.16 30.54
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
10/31/94 0.00 0.00 0.00 (0.07) 13.97 0.58
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
10/31/93 0.00 0.00 0.00 (0.09) 13.97 24.57
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
10/31/92 0.00 (0.02) 0.00 (0.12) 11.29 10.91
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
08/26/91 - 10/31/91 0.00 0.00 0.00 (0.01) 10.28 2.98
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
Administrative Class
12/31/96 (a) 0.00 0.00 0.00 (4.33) 17.80 14.53
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
11/01/95 - 06/30/96 0.00 0.00 0.00 (0.54) 19.44 10.17
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
11/30/94 - 10/31/95 0.00 0.00 0.00 (0.02) 18.17 36.64
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
Cadence Micro Cap Growth Fund
Institutional Class
12/31/96 (a) $ 0.00 $ 0.00 $ 0.00 $ (2.03) $ 17.57 6.26%
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
11/01/95 - 06/30/96 0.00 0.00 0.00 (0.34) 18.47 22.64
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
10/31/95 0.00 0.00 0.00 0.00 15.38 29.54
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
10/31/94 0.00 0.00 0.00 0.00 11.87 7.31
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
06/25/93 - 10/31/93 0.00 0.00 (0.01) (0.01) 11.06 10.81
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
Administrative Class
12/31/96 (a) 0.00 0.00 0.00 (2.03) 17.53 6.10
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
04/01/96 - 06/30/96 0.00 0.00 0.00 0.00 18.46 10.34
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
Cadence Small Cap Growth Fund
Institutional Class
12/31/96 (a) $ (1.08) $ 0.00 $ 0.00 $ (10.60) $ 11.97 9.71%
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
11/01/95 - 06/30/96 0.00 0.00 0.00 (1.60) 20.83 7.22
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
10/31/95 0.00 0.00 0.00 (1.43) 21.02 17.39
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
10/31/94 0.00 0.00 0.00 (0.64) 19.38 4.62
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
10/31/93 0.00 0.00 0.00 (2.78) 19.15 38.80
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
10/31/92 0.00 0.00 0.00 (0.58) 15.80 10.20
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
01/07/91 - 10/31/91 0.00 0.00 0.00 (0.18) 14.87 50.68
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
Administrative Class
12/31/96 (a) (1.08) 0.00 0.00 (10.60) 11.93 9.53
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
11/01/95 - 06/30/96 0.00 0.00 0.00 (1.60) 20.82 7.18
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
09/27/95 - 10/31/95 0.00 0.00 0.00 0.00 21.01 (5.34)
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
Columbus Circle Investors Core Equity Fund
Institutional Class
12/31/96 (a) $ 0.00 $ 0.00 $ 0.00 $ (0.82) $ 13.81 7.99%
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
11/01/95 - 06/30/96 0.00 0.00 0.00 (0.33) 13.55 9.41
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
12/28/94 - 10/31/95 0.00 0.00 0.00 (0.06) 12.72 27.86
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
Administrative Class
12/31/96 (a) 0.00 0.00 0.00 (0.80) 13.82 7.85
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
11/01/95 - 06/30/96 0.00 0.00 0.00 (0.31) 13.56 9.23
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
05/31/95 - 10/31/95 0.00 0.00 0.00 (0.02) 12.73 11.34
- ---------------------------------- --------- ---------- ---------- --------- ---------- ----------
<CAPTION>
Ratio of Net
Ratio of Investment
Net Assets Expenses to Income to Portfolio Average
End of Period Average Net Average Net Turnover Commission
(000's) Assets Assets Rate Rate
<S> <C> <C> <C> <C> <C>
Cadence Mid Cap Growth Fund
Institutional Class
12/31/96 (a) $ 225,296 0.72%* 0.51%* 47.00% $ 0.06
- ---------------------------------- ------------ ---------- ---------- ---------- ----------
11/01/95 - 06/30/96 231,011 0.70* 1.11* 78.81 0.04
- ---------------------------------- ------------ ---------- ---------- ---------- ----------
10/31/95 189,320 0.70 0.43 78.29 0.04
- ---------------------------------- ------------ ---------- ---------- ---------- ----------
10/31/94 121,791 0.70 0.45 60.85
- ---------------------------------- ------------ ---------- ---------- ----------
10/31/93 67,625 0.70 0.56 97.87
- ---------------------------------- ------------ ---------- ---------- ----------
10/31/92 21,213 0.70 0.87 65.92
- ---------------------------------- ------------ ---------- ---------- ----------
08/26/91 - 10/31/91 2,748 0.82* 0.92* 13.41
- ---------------------------------- ------------ ---------- ---------- ----------
Administrative Class
12/31/96 (a) 1,347 0.97* 0.27* 47.00 0.06
- ---------------------------------- ------------ ---------- ---------- ---------- ----------
11/01/95 - 06/30/96 1,071 0.95* 0.89* 78.81 0.04
- ---------------------------------- ------------ ---------- ---------- ---------- ----------
11/30/94 - 10/31/95 892 0.94* 0.23* 71.73 N/A
- ---------------------------------- ------------ ---------- ---------- ---------- ----------
Cadence Micro Cap Growth Fund
Institutional Class
12/31/96 (a) $ 109,706 1.53%* (0.52)%* 41.83% $ 0.06
- ---------------------------------- ------------ ---------- ---------- ---------- ----------
11/01/95 - 06/30/96 83,973 1.50* (0.45)* 53.96 0.02
- ---------------------------------- ------------ ---------- ---------- ---------- ----------
10/31/95 69,775 1.50 (0.37) 86.68 0.03
- ---------------------------------- ------------ ---------- ---------- ---------- ----------
10/31/94 32,605 1.50 (0.25) 58.81
- ---------------------------------- ------------ ---------- ---------- ----------
06/25/93 - 10/31/93 10,827 1.50* (0.02)* 15.98
- ---------------------------------- ------------ ---------- ---------- ----------
Administrative Class
12/31/96 (a) 1,192 1.78* (0.77)* 41.83 0.06
- ---------------------------------- ------------ ---------- ---------- ---------- ----------
04/01/96 - 06/30/96 566 1.73* (0.74)* 53.96 0.02
- ---------------------------------- ------------ ---------- ---------- ---------- ----------
Cadence Small Cap Growth Fund
Institutional Class
12/31/96 (a) $ 32,000 1.31%* (0.08)%* 78.77% $ 0.06
- ---------------------------------- ------------ ---------- ---------- ---------- ----------
11/01/95 - 06/30/96 32,954 1.25* (0.20)* 59.00 0.02
- ---------------------------------- ------------ ---------- ---------- ---------- ----------
10/31/95 73,977 1.25 (0.27) 85.61 0.02
- ---------------------------------- ------------ ---------- ---------- ---------- ----------
10/31/94 50,425 1.25 (0.33) 65.53
- ---------------------------------- ------------ ---------- ---------- ----------
10/31/93 43,308 1.25 (0.35) 62.15
- ---------------------------------- ------------ ---------- ---------- ----------
10/31/92 33,734 1.25 0.09 66.05
- ---------------------------------- ------------ ---------- ---------- ----------
01/07/91 - 10/31/91 33,168 1.29* 0.11* 47.84
- ---------------------------------- ------------ ---------- ---------- ----------
Administrative Class
12/31/96 (a) 21 1.54* (0.36)* 78.77 0.06
- ---------------------------------- ------------ ---------- ---------- ---------- ----------
11/01/95 - 06/30/96 112 1.50* (0.41)* 59.00 0.02
- ---------------------------------- ------------ ---------- ---------- ---------- ----------
09/27/95 - 10/31/95 544 1.60* (0.82)* 8.80 N/A
- ---------------------------------- ------------ ---------- ---------- ---------- ----------
Columbus Circle Investors Core Equity Fund
Institutional Class
12/31/96 (a) $ 11,085 0.86%* 0.32%* 61.39% $ 0.06
- ---------------------------------- ------------ ---------- ---------- ---------- ----------
11/01/95 - 06/30/96 10,452 0.82* 0.53* 73.16 0.04
- ---------------------------------- ------------ ---------- ---------- ---------- ----------
12/28/94 - 10/31/95 7,791 0.82* 0.79* 122.88 0.03
- ---------------------------------- ------------ ---------- ---------- ---------- ----------
Administrative Class
12/31/96 (a) 34,402 1.11* 0.06* 61.39 0.06
- ---------------------------------- ------------ ---------- ---------- ---------- ----------
11/01/95 - 06/30/96 33,575 1.07* 0.28* 73.16 0.04
- ---------------------------------- ------------ ---------- ---------- ---------- ----------
05/31/95 - 10/31/95 24,645 1.06* 0.34* 57.96 N/A
- ---------------------------------- ------------ ---------- ---------- ---------- ----------
</TABLE>
27
<PAGE>
FINANCIAL HIGHLIGHTS (Cont.)
Selected Per Share Data
for the Year or Period Ended:
<TABLE>
<CAPTION>
------------ ------------ ------------ ------------ ------------ -------------
Net Realized/
Net Asset Net Unrealized Total Income Dividends Dividends in
Value Investment Gain from from Net Excess of Net
Beginning of Income (Loss) on Investment Investment Investment
Period (Loss) Investments Operations Income Income
------------ ------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Columbus Circle Investors
Mid Cap Equity Fund
Institutional Class
12/31/96 (a) $ 14.66 $ (0.05) $ 0.37 $ 0.32 $ 0.00 $ 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 12.92 0.49 1.62 2.11 0.00 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
12/28/94 - 10/31/95 10.00 0.02 2.92 2.94 (0.02) 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Parametric Enhanced Equity Fund
Institutional Class
12/31/96 (a) $ 15.91 $ 0.19 $ 1.64 $ 1.83 $ (0.11) $ 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 14.44 0.34 1.67 2.01 (0.16) 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
10/31/95 11.99 0.25 2.62 2.87 (0.25) 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
10/31/94 12.08 0.25 (0.04) 0.21 (0.25) 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
10/31/93 11.76 0.23 0.74 0.97 (0.23) 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
10/31/92 10.80 0.16 1.06 1.22 (0.16) 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
02/11/91 - 10/31/91 10.00 0.16 0.80 0.96 (0.16) 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Blairlogie Emerging Markets Fund
Institutional Class
12/31/96 (a) $ 12.66 $ 0.01 $ (0.66) $ (0.65) $ 0.00 $ (0.06)
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 11.27 0.03 1.40 1.43 (0.04) 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
10/31/95 16.53 0.07 (4.55) (4.48) (0.06) 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
10/31/94 12.27 (0.01) 4.45 4.44 0.00 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
06/01/93 - 10/31/93 10.00 0.03 2.52 2.55 (0.02) 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Administrative Class
12/31/96 (a) 12.63 (0.02)(b) (0.66)(b) (0.68) 0.00 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 11.24 0.02 (b) 1.40 (b) 1.42 (0.03) 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
10/31/95 16.95 0.00 (4.95) (4.95) (0.05) 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Blairlogie International Active Fund
Institutional Class
12/31/96 (a) $ 12.54 $ (0.06) $ 0.09 $ 0.03 $ 0.00 $ 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 11.74 0.72 0.72 1.44 (0.07) (0.36)
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
10/31/95 11.86 0.10 0.30 0.40 (0.09) 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
10/31/94 10.69 0.09 1.15 1.24 (0.03) 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
06/08/93 - 10/31/93 10.00 0.05 0.69 0.74 (0.04) 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Administrative Class
12/31/96 (a) 12.51 (0.07)(b) 0.09 (b) 0.02 0.00 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 11.73 0.69 (b) 0.72 (b) 1.41 (0.07) (0.35)
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
11/30/94 - 10/31/95 11.21 0.02 1.01 1.03 (0.08) 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Balanced Fund
Institutional Class
12/31/96 (a) $ 11.64 $ 0.19 $ 0.81 $ 1.00 $ (0.19) $ (0.01)
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 11.89 0.27 0.76 1.03 (0.27) 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
10/31/95 10.35 0.44 1.54 1.98 (0.44) 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
10/31/94 10.84 0.34 (0.34) 0.00 (0.34) 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
10/31/93 10.42 0.35 0.68 1.03 (0.35) 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
06/25/92 - 10/31/92 10.00 0.12 0.52 0.64 (0.12) 0.00
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
<CAPTION>
-------------
Distributions
from Net
Realized
Capital Gains
-------------
<S> <C>
Columbus Circle Investors
Mid Cap Equity Fund
Institutional Class
12/31/96 (a) $ (1.87)
- -------------------------------------- ------------
11/01/95 - 06/30/96 (0.37)
- -------------------------------------- ------------
12/28/94 - 10/31/95 0.00
- -------------------------------------- ------------
Parametric Enhanced Equity Fund
Institutional Class
12/31/96 (a) $ (3.63)
- -------------------------------------- ------------
11/01/95 - 06/30/96 (0.38)
- -------------------------------------- ------------
10/31/95 (0.17)
- -------------------------------------- ------------
10/31/94 (0.05)
- -------------------------------------- ------------
10/31/93 (0.42)
- -------------------------------------- ------------
10/31/92 (0.04)
- -------------------------------------- ------------
02/11/91 - 10/31/91 0.00
- -------------------------------------- ------------
Blairlogie Emerging Markets Fund
Institutional Class
12/31/96 (a) $ 0.00
- -------------------------------------- ------------
11/01/95 - 06/30/96 0.00
- -------------------------------------- ------------
10/31/95 (0.72)
- -------------------------------------- ------------
10/31/94 (0.18)
- -------------------------------------- ------------
06/01/93 - 10/31/93 (0.26)
- -------------------------------------- ------------
Administrative Class
12/31/96 (a) 0.00
- -------------------------------------- ------------
11/01/95 - 06/30/96 0.00
- -------------------------------------- ------------
10/31/95 (0.71)
- -------------------------------------- ------------
Blairlogie International Active Fund
Institutional Class
12/31/96 (a) $ (0.49)
- -------------------------------------- ------------
11/01/95 - 06/30/96 (0.21)
- -------------------------------------- ------------
10/31/95 (0.43)
- -------------------------------------- ------------
10/31/94 (0.04)
- -------------------------------------- ------------
06/08/93 - 10/31/93 (0.01)
- -------------------------------------- ------------
Administrative Class
12/31/96 (a) (0.49)
- -------------------------------------- ------------
11/01/95 - 06/30/96 (0.21)
- -------------------------------------- ------------
11/30/94 - 10/31/95 (0.43)
- -------------------------------------- ------------
Balanced Fund
Institutional Class
12/31/96 (a) $ (1.96)
- -------------------------------------- ------------
11/01/95 - 06/30/96 (1.01)
- -------------------------------------- ------------
10/31/95 0.00
- -------------------------------------- ------------
10/31/94 (0.15)
- -------------------------------------- ------------
10/31/93 (0.26)
- -------------------------------------- ------------
06/25/92 - 10/31/92 (0.10)
- -------------------------------------- ------------
</TABLE>
* Annualized
(a) Unaudited
(b) Per share amounts based on average number of shares outstanding during the
period.
Periods ended prior to 06/30/96 were audited by other independent accountants.
See Notes to Financial Statements
28
<PAGE>
<TABLE>
<CAPTION>
------------- ------------- ------------- ------------- ------------- -------------
Distributions
in Excess of Distributions Net Asset Net Assets
Net Realized from Total Value End of End of Period
Capital Gains Equalization Distributions Period Total Return (000's)
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Columbus Circle Investors
Mid Cap Equity Fund
Institutional Class
12/31/96 (a) $ 0.00 $ 0.00 $ (1.87) $ 13.11 2.35% $ 7,904
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 0.00 0.00 (0.37) 14.66 16.72 8,378
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
12/28/94 - 10/31/95 0.00 0.00 (0.02) 12.92 29.34 8,357
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Parametric Enhanced Equity Fund
Institutional Class
12/31/96 (a) $ 0.00 $ 0.00 $ (3.74) $ 14.00 11.81% $ 48,304
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 0.00 0.00 (0.54) 15.91 14.21 83,425
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
10/31/95 0.00 0.00 (0.42) 14.44 24.46 73,999
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
10/31/94 0.00 0.00 (0.30) 11.99 1.83 65,915
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
10/31/93 0.00 0.00 (0.65) 12.08 8.20 46,724
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
10/31/92 0.00 (0.06) (0.26) 11.76 11.46 36,515
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
02/11/91 - 10/31/91 0.00 0.00 (0.16) 10.80 9.59 4,451
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Blairlogie Emerging Markets Fund
Institutional Class
12/31/96 (a) $ 0.00 $ 0.00 $ (0.06) $ 11.95 (5.11)% $ 59,122
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 0.00 0.00 (0.04) 12.66 12.70 80,545
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
10/31/95 0.00 0.00 (0.78) 11.27 (27.70) 73,539
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
10/31/94 0.00 0.00 (0.18) 16.53 36.31 79,620
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
06/01/93 - 10/31/93 0.00 0.00 (0.28) 12.27 25.55 14,625
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Administrative Class
12/31/96 (a) 0.00 0.00 0.00 11.95 (5.38) 148
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 0.00 0.00 (0.03) 12.63 12.70 368
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
10/31/95 0.00 0.00 (0.76) 11.24 (27.96) 830
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Blairlogie International Active Fund
Institutional Class
12/31/96 (a) $ (0.12) $ 0.00 $ (0.61) $ 11.96 0.34% $ 86,067
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 0.00 0.00 (0.64) 12.54 12.54 70,207
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
10/31/95 0.00 0.00 (0.52) 11.74 3.83 63,607
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
10/31/94 0.00 0.00 (0.07) 11.86 11.68 22,569
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
06/08/93 - 10/31/93 0.00 0.00 (0.05) 10.69 7.39 8,299
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Administrative Class
12/31/96 (a) (0.12) 0.00 (0.61) 11.92 0.26 5,496
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 0.00 0.00 (0.63) 12.51 12.33 5,624
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
11/30/94 - 10/31/95 0.00 0.00 (0.51) 11.73 9.61 675
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Balanced Fund
Institutional Class
12/31/96 (a) $ 0.00 $ 0.00 $ (2.16) $ 10.48 8.81% $ 63,437
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 0.00 0.00 (1.28) 11.64 9.07 82,562
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
10/31/95 0.00 0.00 (0.44) 11.89 19.47 72,638
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
10/31/94 0.00 0.00 (0.49) 10.35 0.08 130,694
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
10/31/93 0.00 0.00 (0.61) 10.84 10.06 126,410
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
06/25/92 - 10/31/92 0.00 0.00 (0.22) 10.42 6.40 99,198
- -------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
<CAPTION>
------------ ------------ ------------ ------------
Ratio of Net
Ratio of Investment
Expenses to Income to Portfolio Average
Average Net Average Net Turnover Commission
Assets Assets Rate Rate
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Columbus Circle Investors
Mid Cap Equity Fund
Institutional Class
12/31/96 (a) 1.05%* (0.40)%* 79.23% $ 0.06
- -------------------------------------- ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 0.88* (0.32)* 96.62 0.03
- -------------------------------------- ------------ ------------ ------------ ------------
12/28/94 - 10/31/95 0.88* 0.24* 131.58 0.04
- -------------------------------------- ------------ ------------ ------------ ------------
Parametric Enhanced Equity Fund
Institutional Class
12/31/96 (a) 0.73%* 1.41%* 48.46% $ 0.06
- -------------------------------------- ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 0.70* 1.58* 52.83 0.05
- -------------------------------------- ------------ ------------ ------------ ------------
10/31/95 0.70 1.91 20.59 0.05
- -------------------------------------- ------------ ------------ ------------ ------------
10/31/94 0.70 2.20 43.58
- -------------------------------------- ------------ ------------ ------------
10/31/93 0.70 1.89 15.02
- -------------------------------------- ------------ ------------ ------------
10/31/92 0.70 1.81 16.85
- -------------------------------------- ------------ ------------ ------------
02/11/91 - 10/31/91 0.73* 2.14* 0.15
- -------------------------------------- ------------ ------------ ------------
Blairlogie Emerging Markets Fund
Institutional Class
12/31/96 (a) 1.39%* 0.13%* 48.88% $ 0.00
- -------------------------------------- ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 1.35* 0.84* 74.04 0.01
- -------------------------------------- ------------ ------------ ------------ ------------
10/31/95 1.35 0.57 118.18 0.03
- -------------------------------------- ------------ ------------ ------------ ------------
10/31/94 1.35 (0.06) 79.04
- -------------------------------------- ------------ ------------ ------------
06/01/93 - 10/31/93 1.34* 0.64* 36.51
- -------------------------------------- ------------ ------------ ------------
Administrative Class
12/31/96 (a) 1.63* (0.17)* 48.88 0.00
- -------------------------------------- ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 1.61* 0.18* 74.04 0.01
- -------------------------------------- ------------ ------------ ------------ ------------
10/31/95 1.62 0.02 118.18 N/A
- -------------------------------------- ------------ ------------ ------------ ------------
Blairlogie International Active Fund
Institutional Class
12/31/96 (a) 1.13%* 0.18%* 42.12% $ 0.02
- -------------------------------------- ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 1.10* 0.81* 59.56 0.02
- -------------------------------------- ------------ ------------ ------------ ------------
10/31/95 1.10 1.10 63.12 0.03
- -------------------------------------- ------------ ------------ ------------ ------------
10/31/94 1.10 1.12 88.55
- -------------------------------------- ------------ ------------ ------------
06/08/93 - 10/31/93 1.10* 0.91* 19.61
- -------------------------------------- ------------ ------------ ------------
Administrative Class
12/31/96 (a) 1.38* (0.04)* 42.12 0.02
- -------------------------------------- ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 1.35* 1.04* 59.56 0.02
- -------------------------------------- ------------ ------------ ------------ ------------
11/30/94 - 10/31/95 1.34* 0.50* 58.07 N/A
- -------------------------------------- ------------ ------------ ------------ ------------
Balanced Fund
Institutional Class
12/31/96 (a) 0.73%* 3.33%* 114.89% $ 0.06
- -------------------------------------- ------------ ------------ ------------ ------------
11/01/95 - 06/30/96 0.70* 3.46* 139.59 0.05
- -------------------------------------- ------------ ------------ ------------ ------------
10/31/95 0.70 3.73 43.10 0.04
- -------------------------------------- ------------ ------------ ------------ ------------
10/31/94 0.70 3.25 46.72
- -------------------------------------- ------------ ------------ ------------
10/31/93 0.70 3.10 19.32
- -------------------------------------- ------------ ------------ ------------
06/25/92 - 10/31/92 0.70* 3.36* 38.51
- -------------------------------------- ------------ ------------ ------------
</TABLE>
29
<PAGE>
SCHEDULE OF INVESTMENTS
NFJ Equity Income Fund
December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
Value
Shares (000's)
=============================================================================
COMMON STOCKS - 94.7%
=============================================================================
Capital Goods - 1.9%
GATX Corp. 48,000 $ 2,328
Consumer Discretionary - 15.2%
Brunswick Corp. 95,800 2,299
Chrysler Corp. 66,060 2,180
Ford Motor Co. 69,900 2,228
Harland (John H.) Co. 73,400 2,422
J.C. Penny Co., Inc. 45,100 2,199
Maytag Corp. 114,100 2,253
Springs Industries, Inc. 51,900 2,232
Xerox Corp. 44,800 2,358
----------
18,171
Consumer Staples - 7.4%
Anheuser Busch 53,400 2,136
Philip Morris Co., Inc. 20,100 2,264
RJR Nabisco Holdings Corp. 69,000 2,346
Supervalu, Inc. 75,900 2,154
----------
8,900
Energy - 9.5%
Amoco Corp. 28,000 2,254
Atlantic Richfield Co. 16,400 2,173
Repsol SA - ADR 59,700 2,276
Ultramar Diamond Shamrock Corp. 145,500 4,601
----------
11,304
Financial & Business Services - 17.6%
Bankers Trust N.Y. Corp. 25,300 2,182
Bear Stearns Cos. 171,287 4,775
Chase Manhattan Corp. 25,356 2,263
Lincoln National Corp. 10,200 536
Meditrust 59,100 2,364
Mellon Bank Corp. 31,600 2,244
PHH Corp. 51,000 2,193
PNC Bank Corp. 58,600 2,205
Providian Corp. 43,400 2,230
----------
20,992
Health Care - 9.3%
Aetna, Inc. 30,400 2,432
American Home Products 35,200 2,064
Baxter International, Inc. 50,800 2,083
Bristol Myers Squibb 20,800 2,262
Pharmacia & Upjohn, Inc. 58,195 2,305
----------
11,146
Materials & Processing - 9.1%
Dow Chemical 28,200 2,210
Phelps Dodge Corp. 66,400 4,482
Potlatch Corp. 44,000 1,892
Vulcan Materials Co. 37,100 2,258
----------
10,842
Technology - 5.7%
Harris Corp. 32,900 2,258
Northrop Grumman Corp. 55,900 4,625
----------
6,883
Utilities - 19.0%
DTE Energy Co. 73,400 2,376
NICOR, Inc. 64,000 2,288
P.P. & L. Resources, Inc. 97,700 2,247
Pacific Gas & Electric 94,800 1,991
Pacific Telesis 65,300 2,400
Peoples Energy Corp. 65,700 2,225
Southern New England
Telecommunications Group 58,900 2,290
Sprint Corp. 59,500 2,373
U.S. West Communications Group 73,200 2,361
Washington Water Power 116,000 2,160
----------
22,711
----------
Total Common Stocks 113,277
(Cost $92,150) ==========
<CAPTION>
===============================================================================
SHORT-TERM INSTRUMENTS - 5.4%
===============================================================================
Principal
Amount
(000's)
<S> <C> <C>
Repurchase Agreement - 5.4%
State Street Bank $ 6,439 6,439
4.000% due 01/02/97
(Dated 12/31/96. Collateralized by
U.S. Treasury Bond 7.125% due
02/15/23 valued at $6,570,775.
Repurchase proceeds are $6,440,430.)
----------
Total Short-Term Instruments 6,439
(Cost $6,439) ==========
Total Investments (a) - 100.1% $ 119,716
(Cost $98,589)
Other Assets and Liabilities (Net) - (0.1)% (154)
----------
Net Assets - 100.0% $ 119,562
==========
Notes to Schedule of Investments ($ in thousands):
(a) At December 31, 1996, the net unrealized
appreciation (depreciation) of investments
based on cost for federal income tax purposes
was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 22,200
Aggregate gross unrealized depreciation for
all investments in which there was an excess
of tax cost over value. (1,073)
----------
Unrealized appreciation-net $ 21,127
==========
</TABLE>
See Notes to Financial Statements
30
<PAGE>
SCHEDULE OF INVESTMENTS
NFJ Diversified Low P/E Fund
December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
Value
Shares (000's)
=============================================================================
Common Stock - 94.9%
=============================================================================
<S> <C> <C>
Capital Goods - 1.8%
Deere & Co. 28,000 $ 1,138
Consumer Discretionary - 18.1%
Brunswick Corp. 23,400 562
Chrysler Corp. 52,710 1,739
Dillard Department Stores 40,400 1,247
Goodyear Tire & Rubber 12,000 617
Maytag Corp. 62,400 1,232
Reebok International Limited 28,400 1,193
Tandy Corp. 14,100 620
Tupperware Corp. 23,100 1,239
Washington Post Co. 3,400 1,139
Xerox Corp. 37,800 1,989
------------
11,577
Consumer Staples - 10.4%
Anheuser Busch 43,700 1,748
IBP, Inc. 25,600 621
Philip Morris Co., Inc. 10,600 1,194
Supervalu, Inc. 41,900 1,189
Unilever NV 7,200 1,262
Whitman Corp. 26,200 599
------------
6,613
Energy - 11.6%
Amoco Corp. 15,300 1,232
Atlantic Richfield Co. 13,200 1,749
Repsol SA - ADR 33,400 1,273
Ultramar Diamond Shamrock Corp. 59,900 1,894
Union Texas Petroleum Holdings, Inc. 56,000 1,253
------------
7,401
Financial & Business Services - 16.1%
Bear Stearns Cos. 68,150 1,900
Chase Manhattan Corp. 19,584 1,748
Loews Corp. 6,400 603
Mellon Bank Corp. 25,500 1,811
PHH Corp. 42,600 1,832
Providian Corp. 22,200 1,141
Standard Federal Bancorp. 21,400 1,217
------------
10,252
Health Care - 7.6%
American Home Products 29,200 1,712
Beckman Instruments 16,600 637
Foundation Health Corp. (b) 20,800 660
Pharmacia & Upjohn, Inc. 47,010 1,863
------------
4,872
Materials & Processing - 6.6%
Bowater, Inc. 15,400 579
Lennar Corp. 23,550 642
Phelps Dodge Corp. 17,500 1,181
Union Carbide Corp. 28,900 1,181
Wellman, Inc. 35,500 608
------------
4,191
Technology - 8.6%
Harris Corp. 17,600 1,208
Mentor Graphics Corp. (b) 63,700 621
Northrop Grumman Corp. 14,600 1,208
Raytheon Co. 25,800 1,242
Seagate Technology (b) 14,600 577
Teradyne, Inc. (b) 26,300 641
------------
5,497
Transportation - 1.9%
Conrail, Inc. 5,700 568
UAL Corp. (b) 10,300 644
------------
1,212
Utilities - 12.2%
DTE Energy Co. 38,400 1,243
NICOR, Inc. 49,900 1,784
Pacific Gas & Electric 49,500 1,040
Pacific Telesis 50,100 1,841
Sprint Corp. 46,700 1,861
------------
7,769
------------
Total Common Stocks 60,522
============
(Cost 54,174)
<CAPTION>
=============================================================================
SHORT-TERM INSTRUMENTS - 4.9%
=============================================================================
Principal
Amount
(000's)
<S> <C> <C>
Repurchase Agreement - 4.9%
State Street Bank $ 3,150 3,150
4.000% due 01/02/97
(Dated 12/31/96. Collateralized by
U.S. Treasury Bond 7.125% due
02/15/23 valued at $3,215,025.
Repurchase proceeds are $3,150,700.)
-----------
Total Short-Term Instruments 3,150
(Cost $3,150) ===========
Total Investments (a) - 99.8% $ 63,672
(Cost $57,324)
Other Assets and Liabilities (Net) - 0.2% 110
-----------
Net Assets - 100.0% $ 63,782
===========
Notes to Schedule of Investments ($ in thousands):
(a) At December 31, 1996, the net unrealized
appreciation (depreciation) of investments
based on cost for federal income tax purposes
was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 7,217
Aggregate gross unrealized depreciation for
all investments in which there was an excess
of tax cost over value. (869)
-----------
Unrealized appreciation-net $ 6,348
===========
</TABLE>
(b) Non-income producing security.
See Notes to Financial Statements
31
<PAGE>
SCHEDULE OF INVESTMENTS
NFJ Small Cap Value Fund
December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
Value
Shares (000's)
- -----------------------------------------------------------------------
Common Stocks-96.4%
- -----------------------------------------------------------------------
<S> <C> <C>
Capital Goods - 11.6%
Allied Products Corp. 12,400 $ 369
Barnes Group, Inc. 5,500 330
Blount International, Inc. `A' 9,800 376
Charter Power Systems 13,800 421
Kysor Industrial Corp. 11,600 378
Oshkosh Truck Corp. `B' 31,400 334
Regal Beloit 16,800 330
Scotsman Industries, Inc. 13,800 326
Smith (A.O.) Corp. 11,300 338
Tecumseh Products Co. `A' 6,000 344
Varlen Corp. 17,550 361
Webb Corp. 18,100 296
-----------
4,203
Consumer Discretionary - 11.9%
Blair Corp. 13,000 250
Borg Warner Automotive 8,200 316
Brown Group, Inc. 17,800 327
Ennis Business Forms, Inc. 33,000 371
Fedders USA, Inc. 53,000 331
Garan, Inc. 17,200 333
Guilford Mills, Inc. 13,000 346
Harman International 7,500 417
Outboard Marine Corp. 18,000 297
Shopko Stores, Inc. 20,900 314
Stanhome, Inc. 12,000 318
Sturm Ruger & Co., Inc. 18,700 362
Toro Co. 9,700 354
-----------
4,336
Consumer Services - 2.8%
Bowne & Co., Inc. 14,700 362
Luby's Cafeterias, Inc. 17,200 342
Merrill Corp. 13,500 311
-----------
1,015
Consumer Staples - 6.9%
Bindley Western Industries, Inc. 19,400 376
Dimon, Inc. 18,100 419
International Multifoods 17,400 315
Marsh Supermarkets, Inc. `B' 28,400 323
Morningstar Group, Inc. (b) 17,400 341
Nash Finch Co. 17,800 378
Universal Corp. 11,300 363
-----------
2,515
Energy - 4.9%
Aquila Gas Pipeline Corp. 20,700 329
Monterey Resources, Inc. (b) 21,900 353
Offshore Logistics, Inc. (b) 17,800 345
World Fuel Services Corp. 15,700 349
Zeigler Coal Holding Co. 18,100 387
-----------
1,763
Financial & Business Services - 22.5%
Alex Brown, Inc. 5,100 370
American Health Properties 14,400 344
Amvestors Financial Corp. 22,400 330
Capstead Mortgage Corp. 16,350 392
Collective BanCorp., Inc. 10,100 355
Commercial Federal Corp. 7,600 365
Cullen/Frost Bankers, Inc. 9,900 329
Eaton Vance Corp. 7,800 371
Excel Realty Trust, Inc. 14,300 363
First Financial Corp. Wisconsin 14,000 343
Firstbank Puerto Rico 12,000 312
Fremont General 13,600 422
Glimcher Realty Trust 16,400 361
Inter-Regional Financial Group 6,200 219
McGrath Rentcorp. 15,800 407
Morgan Keegan, Inc. 20,350 348
Orion Capital Corp. 5,700 348
Pioneer Financial Services, Inc. 13,800 345
Quick & Reilly Group, Inc. 11,500 344
Raymond James Financial Corp. 12,200 368
South West Property Trust 23,000 388
Sovereign Bancorp, Inc. 25,350 333
U.S. Facilities 18,900 371
-----------
8,128
Health Care - 2.8%
Bergen Brunswig `A' 11,315 322
ICN Pharmaceuticals, Inc. 16,724 328
Integrated Health Services 14,400 351
-----------
1,001
Materials & Processing - 16.2%
Butler Manufacturing Co. 9,000 365
Caraustar Industries, Inc. 12,500 416
Castle (A.M.) & Co. 18,225 351
Chemfirst, Inc. (b) 13,500 312
Cleveland Cliffs, Inc. 8,500 386
Commercial Metals 10,200 307
Continental Homes 18,400 391
Gencorp 18,700 339
Kaman Corp. 26,800 348
Mississippi Chemical Corp. 4,509 108
Mosinee Paper Corp. 9,600 341
Nacco Industries, Inc. 5,900 316
Quanex Corp. 11,700 320
Southdown, Inc. 11,000 342
Standard Motor Products 22,200 308
Texas Industries, Inc. 6,000 304
Universal Forest Products, Inc. 25,200 334
Wellman, Inc. 15,600 267
-----------
5,855
Technology - 5.9%
Computer Data Systems, Inc. 14,400 436
Dallas Semiconductor Corp. 15,200 350
MTS Systems Corp. 16,500 330
Pioneer Standard Electronics 22,200 291
Thiokol Corp. 8,300 371
Wyle Electronics 8,700 344
-----------
2,122
Transportation - 3.6%
APL Limited 14,000 331
Atlantic Southeast Airs, Inc. 15,600 341
Sea Containers Limited `A' 20,200 316
Winnebago Industries 42,400 307
-----------
1,295
Utilities - 7.3%
Aliant Communications, Inc. 20,400 347
Central Hudson Gas & Electric 10,700 336
Commonwealth Energy System 13,800 324
Eastern Utilities Associates 18,700 325
Energen Corp. 12,100 366
Rochester Gas & Electric 15,600 298
Southern California Water Co. 15,000 326
United Illuminating 9,900 310
-----------
2,632
-----------
Total Common Stocks 34,865
(Cost 28,985) ===========
</TABLE>
32
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
(000's) (000's)
- ----------------------------------------------------------------------
Short-Term Instruments-5.3%
- ----------------------------------------------------------------------
<S> <C> <C>
Repurchase Agreement - 5.3%
State Street Bank 1,949 $ 1,949
4.000% due 01/02/97
(Dated 12/31/96. Collateralized by
U.S. Treasury Bond 7.125% due
02/15/23 valued at 1,991,800.
Repurchase proceeds are 1,949,433.)
-----------
Total Short-Term Instruments 1,949
(Cost 1,949) ===========
Total Investments (a) - 101.7% $ 36,814
(Cost 30,934)
Other Assets and Liabilities (Net) - (1.7%) (632)
-----------
Net Assets - 100.0% $ 36,182
===========
Notes to Schedule of Investments (in thousands):
(a) At December 31, 1996, the net unrealized
appreciation (depreciation) of investments
based on cost for federal income tax
purposes was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 6,974
Aggregate gross unrealized depreciation for
all investments in which there was as excess
of tax cost over value. (1,094)
-----------
Unrealized appreciation-net $ 5,880
===========
</TABLE>
(b) Non-income producing security.
See Notes to Financial Statements
33
<PAGE>
SCHEDULE OF INVESTMENTS
Cadence Capital Appreciation Fund
December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
Value
Shares (000's)
- ----------------------------------------------------------------------
Common Stocks-98.7%
- ----------------------------------------------------------------------
<S> <C> <C>
Capital Goods - 11.6%
Allied Signal, Inc. 97,900 $ 6,559
Johnson Controls, Inc. 68,500 5,677
Perkin-Elmer Corp. 94,400 5,558
Rockwell International Corp. (b) 95,300 5,802
Sundstrand Corp. 130,400 5,542
Textron, Inc. 62,500 5,891
Tyco Labs 123,500 6,530
United Technologies 101,900 6,725
-----------
48,284
Consumer Discretionary - 12.9%
Armstrong World Industries 73,200 5,087
Chrysler Corp. 168,200 5,551
Dayton Hudson Corp. 140,900 5,530
Estee Lauder 117,200 5,963
Federated Department Stores, Inc. (b) 134,300 4,583
Harley Davidson, Inc. 107,500 5,053
Jones Apparel Group, Inc. (b) 104,200 3,894
Nike, Inc. 96,100 5,742
Omnicom Group 106,200 4,859
TJX Cos., Inc. 163,500 7,746
-----------
54,008
Consumer Services - 2.3%
Carnival Cruise Lines 152,900 5,046
Mirage Resorts (b) 203,000 4,390
-----------
9,436
Consumer Staples - 5.2%
Campbell Soup Co. 59,000 4,735
Food Lion, Inc. 241,000 2,357
Hershey Foods Corp. 47,000 2,056
Kroger Co. (b) 129,000 5,999
Safeway, Inc. (b) 150,600 6,438
-----------
21,585
Energy - 11.1%
Atlantic Richfield Co. 37,700 4,995
British Petroleum - ADR 42,300 5,980
Dresser Industries, Inc. 133,200 4,129
Ensco International (b) 146,600 7,110
Global Marine, Inc. (b) 217,800 4,492
Halliburton Co. 89,900 5,416
Panenergy Corp. 111,500 5,018
Transocean Offshore, Inc. 68,000 4,259
Vastar Resources, Inc. 128,800 4,894
-----------
46,293
Financial & Business Services - 21.0%
American Express 89,300 5,045
Bank of Boston Corp. 77,100 4,954
Bankamerica Corp. 55,600 5,546
Bear Stearns Cos. 160,985 4,487
Chase Manhattan Corp. 61,000 5,444
Citicorp 53,700 5,531
Federal Home Loan Mortgage Corp. 52,700 5,804
Federal National Mortgage Association 128,900 4,802
First Chicago Corp. 88,502 4,757
First Union Corp. 71,100 5,261
Green Tree Financial Corp. 106,000 4,094
National City Corp. 117,400 5,268
Norwest Corp. 114,900 4,998
PNC Bank Corp. 136,695 5,143
Southtrust Corp. 152,400 5,315
TIG Holdings, Inc. 140,300 4,753
Travelers Group, Inc. 137,800 6,253
-----------
87,455
Value
Shares (000's)
- ----------------------------------------------------------------------
<S> <C> <C>
Health Care - 9.5%
American Home Products 71,600 4,198
Boston Scientific Corp. (b) 107,800 6,468
Eli Lilly & Co. 76,800 5,606
Medtronic, Inc. 63,600 4,325
Ornda Healthcorp (b) 147,900 4,326
Oxford Health Plans (b) 92,500 5,417
Schering-Plough 76,400 4,947
U.S. Surgical Corp. 105,900 4,170
-----------
39,457
Materials & Processing - 3.5%
IMC Global, Inc. 129,700 5,075
Olin Corp. 107,400 4,041
Rohm & Haas Co. 66,700 5,444
-----------
14,560
Technology - 15.0%
3Com Corp. (b) 72,400 5,312
Adaptec, Inc. (b) 148,000 5,920
Andrew Corp. (b) 107,050 5,680
Cisco Systems (b) 70,000 4,454
Compaq Computer Corp. (b) 85,100 6,318
Computer Associates International, Inc. 88,050 4,380
Dell Computer Corp., Inc. (b) 123,400 6,556
Gateway 2000, Inc. (b) 98,200 5,260
Intel Corp. 43,300 5,670
Newbridge Networks Corp. (b) 55,700 1,574
Storage Technology Corp. (b) 117,900 5,615
Sun Microsystem, Inc. (b) 158,800 4,079
U.S. Robotics Corp. (b) 29,300 2,110
-----------
62,928
Transportation - 1.3%
Continental Airlines `B' (b) 198,500 5,607
Utilities - 5.3%
American Electric Power, Inc. 106,400 4,375
Ameritech 73,300 4,444
Consolidated Natural Gas 91,800 5,072
GPU, Inc. 125,900 4,233
Texas Utilities Co. 98,400 4,010
-----------
22,134
-----------
Total Common Stocks 411,747
(Cost 328,498) ===========
<CAPTION>
- ----------------------------------------------------------------------
Short-Term Instruments-4.9%
- ----------------------------------------------------------------------
Principal
Amount
(000's)
Repurchase Agreement - 4.9%
State Street Bank $ 20,607 20,607
4.000% due 01/02/97
(Dated 12/31/96. Collateralized by
U.S. Treasury Bond 7.125% due
02/15/23 valued at $21,022,150.
Repurchase proceeds are 20,611,579.)
-----------
Total Short-Term Instruments 20,607
(Cost $20,607) ===========
Total Investments (a) - 103.6% $ 432,354
(Cost $349,105)
Other Assets and Liabilities (Net) - (3.6%) (15,109)
-----------
Net Assets - 100.0% $ 417,245
===========
</TABLE>
34
<PAGE>
- --------------------------------------------------------------------------------
Notes to Schedule of Investments ($ in thousands):
(a) At December 31, 1996, the net unrealized
appreciation (depreciation) of investments
based on cost for federal income tax purposes
was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 85,956
Aggregate gross unrealized depreciation for
all investments in which there was an excess
of tax cost over value. (2,707)
-----------
Unrealized appreciation-net $ 83,249
===========
(b) Non-income producing security.
See Notes to Financial Statements
35
<PAGE>
SCHEDULE OF INVESTMENTS
Cadence Mid Cap Growth Fund
December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
Value
Shares (000's)
======================================================================
COMMON STOCKS - 96.1%
======================================================================
<S> <C> <C>
Capital Goods - 9.0%
Belden, Inc. 91,200 $ 3,374
Harnischfeger Industries, Inc. 65,000 3,128
Lear Corp. (b) 62,400 2,129
Mark IV Industries, Inc. 100,011 2,263
Raychem Corp. 35,500 2,844
Sealed Air Corp. (b) 27,500 1,145
Snap on Tools Corp. 67,200 2,394
York International Corp. 55,000 3,073
------------
20,350
Consumer Discretionary - 13.2%
Bed, Bath & Beyond (b) 88,400 2,144
Borders Group, Inc. (b) 73,400 2,633
Callaway Golf Co. 80,700 2,320
Consolidated Stores Corp. (b) 79,875 2,566
First Brands Corp. 94,500 2,681
Fruit of the Loom, Inc. (b) 69,800 2,644
International Game Technology 98,300 1,794
Liz Claiborne, Inc. 63,000 2,433
Maytag Corp. 100,800 1,991
Neiman-Marcus Group, Inc. 71,400 1,821
Tiffany & Co. 62,000 2,271
Tommy Hilfiger Corp. (b) 38,900 1,867
U.S. Industries (b) 81,400 2,798
------------
29,963
Consumer Services - 4.2%
Gtech Holdings Corp. (b) 71,800 2,298
Lennar Corp. 86,300 2,352
Oakwood Homes 101,600 2,324
Promus Hotel Corp. (b) 88,400 2,619
------------
9,593
Consumer Staples - 3.6%
Interstate Bakeries Corp. 62,200 3,056
Kroger Co. (b) 55,400 2,576
Richfood Holdings, Inc. 107,950 2,618
------------
8,250
Energy - 7.6%
Baker Hughes, Inc. 66,900 2,308
CN Falcon Drilling Co. (b) 62,600 2,457
Cooper Cameron Corp. (b) 30,300 2,318
Diamond Offshore Drilling (b) 37,900 2,160
El Paso Natural Gas 51,400 2,596
Reading & Bates Corp. (b) 90,000 2,385
Tosco Corp. 38,000 3,007
------------
17,231
Financial & Business Services - 28.6%
Ace Limited 40,700 2,447
Allmerica Financial Corp. 72,400 2,425
Amsouth Bancorp. 54,100 2,617
Bank of Boston Corp. 36,200 2,326
Banponce Corp. 7,100 240
Citizens Corp. 127,600 2,871
Countrywide Credit Industries, Inc. 90,800 2,599
Crescent Real Estate Equities 50,000 2,638
Crestar Financial Corp. 32,500 2,417
Cullen/Frost Bankers, Inc. 73,600 2,447
Equifax 67,600 2,070
Equity Residential Properties Trust 56,100 2,314
Finova Group, Inc. 36,000 2,313
First American Corp. 48,900 2,818
First USA, Inc. 73,200 2,535
Herman Miller 47,700 2,701
Mark Twain Bancshares, Inc. 56,000 2,730
Mid Ocean Limited 42,700 2,242
Mutual Risk Management Limited 67,099 2,483
Penncorp Financial Group, Inc. 64,200 2,311
Protective Life Corp. 55,100 2,197
Public Storage, Inc. 91,900 2,849
Southern National Corp. 74,000 2,683
Summit Bancorp 52,160 2,282
Sunamerica, Inc. 56,100 2,489
The Money Store 93,300 2,577
Union Planters Corp. 57,000 2,223
------------
64,844
Health Care - 4.1%
Boston Scientific Corp. (b) 37,900 2,274
Health Management Associates `A' (b) 94,775 2,132
Pacificare Health Systems `B' (b) 27,400 2,336
Sybron Corp. (b) 77,100 2,544
------------
9,286
Materials & Processing - 5.6%
Bemis, Inc. 78,400 2,891
Cytec Industries, Inc. (b) 66,600 2,706
Praxair, Inc. 60,000 2,768
Texas Industries, Inc. 36,100 1,828
Titanium Metals Corp. (b) 73,600 2,419
------------
12,612
Technology - 15.0%
Adaptec, Inc. (b) 63,500 2,540
American Power Conversion Corp. (b) 41,600 1,134
C-Cube Microsystems (b) 52,300 1,932
Cadence Designs Systems, Inc. (b) 74,500 2,961
Comdisco, Inc. 83,150 2,640
Compuware Corp. (b) 36,900 1,850
Diebold, Inc. 20,200 1,270
Gateway 2000, Inc. (b) 46,300 2,480
Harris Corp. 32,800 2,251
McAfee Associates, Inc. (b) 55,000 2,420
Parametric Technology Corp. (b) 55,000 2,826
SCI Systems, Inc. (b) 42,300 1,888
Tandem Computers, Inc. (b) 83,000 1,141
Tektronix 52,100 2,670
Vanstar Corp. (b) 40,400 990
Western Digital Corp. (b) 52,000 2,957
------------
33,950
Transportation - 1.1%
Tidewater, Inc. 55,200 2,497
Utilities - 4.1%
Allegheny Power System 84,100 2,555
Century Telephone Enterprise 66,700 2,059
Cinergy Corp. 66,900 2,232
Illinova Corp. 90,400 2,486
------------
9,332
------------
Total Common Stocks 217,908
============
(Cost $ 178,881)
</TABLE>
36
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
(000's) (000's)
================================================================================
SHORT-TERM INSTRUMENTS - 3.6%
================================================================================
<S> <C> <C>
Repurchase Agreement - 3.6%
State Street Bank $ 8,030 $ 8,030
4.000% due 01/02/97
(Dated 12/31/96. Collateralized by
U.S. Treasury Bond 7.125% due
02/15/23 valued at 8,194,525.
Repurchase proceeds are 8,031,784.)
----------
Total Short-Term Instruments 8,030
(Cost 8,030) ==========
Total Investments (a) - 99.7% $ 225,938
(Cost 186,911)
Other Assets and Liabilities (Net) - 0.3% 705
----------
Net Assets - 100.0% 226,643
==========
Notes to Schedule of Investments ( in thousands):
(a) At December 31, 1996, the net unrealized
appreciation (depreciation) of investments
based on cost for federal income tax purposes
was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 41,424
Aggregate gross unrealized depreciation for
all investments in which there was an excess
of tax cost over value. (2,397)
----------
Unrealized appreciation-net 39,027
==========
(b) Non-income producing security.
</TABLE>
See Notes to Financial Statements
37
<PAGE>
SCHEDULE OF INVESTMENTS
Cadence Micro Cap Growth Fund
December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
Value
Shares (000's)
======================================================================
COMMON STOCK - 89.8%
======================================================================
<S> <C> <C>
Capital Goods - 10.4%
BHA Group, Inc. 27,000 $ 435
Engineered Support Systems 45,200 667
Gardner Denver Machinery, Inc. (b) 64,500 2,209
Hughes Supply, Inc. 39,400 1,699
NCI Building Systems, Inc. (b) 45,950 1,585
Northwest Pipe Co. 30,800 501
Powell Industries, Inc. (b) 85,000 1,179
Shaw Group, Inc. (b) 48,500 1,134
Virco Manufacturing 29,900 426
Watsco, Inc. `A' 58,400 1,686
-----------
11,521
Consumer Discretionary - 11.5%
American Safety Razor Co. (b) 40,900 573
American Woodmark Corp. 52,900 747
Chattem, Inc. (b) 113,700 1,023
Culp, Inc. 138,550 2,113
Eastbay, Inc. (b) 72,100 1,730
Flexsteel Industries, Inc. 44,700 581
Koala Corp. (b) 66,000 891
Monaco Coach Corp. (b) 32,000 520
Movado Group, Inc. 39,300 1,071
Piercing Pagoda, Inc. (b) 33,800 820
Pillowtex Corp. 56,500 1,017
Quaker Fabric Corp. (b) 36,900 517
Winsloew Furniture, Inc. (b) 58,200 567
Worldtex, Inc. (b) 68,000 603
-----------
12,773
Consumer Services - 11.0%
All American Communications, Inc. `B' (b) 204,200 2,042
American List Corp. 17,900 544
Anchor Gaming (b) 31,100 1,252
Fresh America Corp. (b) 61,100 1,008
Ha-Lo Industries, Inc. (b) 75,750 2,083
M/I Schottenstein Homes, Inc. (b) 50,000 550
Penn National Gaming, Inc. (b) 31,900 455
S&K Famous Brands, Inc. (b) 60,400 574
Sodak Gaming, Inc. (b) 94,100 1,447
Stuart Entertainment, Inc. (b) 59,400 267
United Video Satellite (b) 109,400 1,914
-----------
12,136
Consumer Staples - 5.3%
Ingles Markets, Inc. 61,800 773
Riser Foods, Inc. 76,600 2,432
Seaway Food Town, Inc. 20,314 548
Standard Commercial Corp. 52,100 1,055
Worthington Foods, Inc. 58,000 1,102
-----------
5,910
Energy - 6.5%
American Oilfield Divers, Inc. (b) 51,500 612
Clayton Williams Energy, Inc. (b) 40,100 697
Giant Industries 106,200 1,487
ICO, Inc. 244,200 1,496
St. Mary Land & Exploration 57,600 1,433
USX-Delhi Group 90,400 1,435
-----------
7,160
Financial & Business Services - 18.3%
Aames Financial Corp. 20,250 726
Abington Savings Bank 29,100 567
Chittenden Corp. 59,855 1,429
Community First Bankshares 54,200 1,491
Dime Financial Corp. 83,600 1,442
First Merchants Acceptance (b) 28,700 549
Graphic Industries 140,800 1,426
Grove Bank 14,900 741
Jeffbanks, Inc. 37,500 1,013
Peoples Heritage Financial Group 55,500 1,554
Pioneer Financial Services, Inc. 73,800 1,845
Provident Bankshares 37,174 1,450
Right Management Consultants (b) 65,800 1,464
Sho-Me Financial Corp. (b) 25,200 548
Southwest Securities Group 42,300 635
Vermont Financial Services Corp. 37,300 1,324
Warren Bancorp, Inc. 135,800 2,037
-----------
20,241
Health Care - 7.5%
Alliance Imaging, Inc. (b) 100,900 580
Health Images, Inc. 162,500 2,702
Medco Research, Inc. (b) 89,900 944
RehabCare Group, Inc. (b) 28,200 568
Rexall Sundown, Inc. (b) 63,550 1,727
Vitalink Pharmacy Service (b) 79,700 1,833
-----------
8,354
Materials & Processing - 1.0%
Atlantis Plastic, Inc. `A' (b) 60,200 610
Specialty Paperboard, Inc. (b) 26,100 522
-----------
1,132
Technology - 14.4%
Advanced Logic Research, Inc. (b) 51,000 631
Applied Voice Technology, Inc. (b) 62,400 764
Barra, Inc. (b) 64,800 1,782
BTG, Inc. (b) 70,200 1,860
Ciber, Inc. (b) 48,100 1,443
Computer Data Systems, Inc. 65,700 1,987
Ikos Systems, Inc. (b) 87,600 1,752
Plexus Corp. (b) 54,000 905
Qlogic Corp. (b) 94,000 2,421
Quickturn Design Systems, Inc. (b) 120,100 2,462
-----------
16,007
Transportation - 3.9%
Atlantic Coast Airlines, Inc. (b) 123,200 1,509
Mesaba Holdings, Inc. (b) 87,900 1,307
MTL, Inc. (b) 51,400 1,041
Petroleum Helicopters, Inc. 29,600 518
-----------
4,375
-----------
Total Common Stocks 99,609
(Cost 74,366) ===========
<CAPTION>
================================================================================
SHORT-TERM INSTRUMENTS - 9.2%
================================================================================
Principal
Amount
(000's)
Repurchase Agreement - 9.2%
State Street Bank $ 10,175 10,175
4.000% due 01/02/97
(Dated 12/31/96. Collateralized by
U.S. Treasury Bond 7.125% due
02/15/23 valued at $10,381,175.
Repurchase proceeds are $10,177,261.)
-----------
Total Short-Term Instruments 10,175
(Cost $10,175) ===========
Total Investments (a) - 99.0% $ 109,784
(Cost $84,541)
Other Assets and Liabilities (Net) - 1.0% 1,114
-----------
Net Assets - 100.0% $ 110,898
===========
</TABLE>
38
<PAGE>
Notes to Schedule of Investments ( in thousands):
(a) At December 31, 1996, the net unrealized
appreciation (depreciation) of investments
based on cost for federal income tax purposes
was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 26,156
Aggregate gross unrealized depreciation for
all investments in which there was an excess
of tax cost over value (913)
------------
Unrealized appreciation-net $ 25,243
============
(b) Non-income producing security.
See Notes to Financial Statements
39
<PAGE>
SCHEDULE OF INVESTMENTS
Cadence Small Cap Growth Fund
December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
Value
Shares (000's)
- --------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS -- 94.3%
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Capital Goods - 13.3%
Barnes Group, Inc. 5,100 $ 306
Duriron Co., Inc. 13,100 355
Gencorp 17,800 323
Gleason Corp. 9,800 325
Graco, Inc. 5,800 142
Hughes Supply, Inc. 7,500 323
Lincoln Electric Co. `A' 7,400 224
Manitowoc Co., Inc. 9,400 381
Methode Electronics `A' 20,850 422
NCI Building Systems, Inc. (b) 12,700 438
Robbins & Myers, Inc. 15,100 378
Shaw Group, Inc. (b) 7,000 164
Watsco, Inc. `A' 16,550 478
--------
4,259
Consumer Discretionary - 6.9%
Action Performance Cos., Inc. (b) 11,500 207
Central Garden & Pet Co. (b) 13,800 291
Duty Free International, Inc. 18,200 264
Inbrand Corp. (b) 7,700 162
K2, Inc. 13,000 358
Kimball International `B' 3,800 157
Meyer (Fred), Inc. (b) 8,900 316
Pacific Sunwear of California (b) 5,800 149
Pier 1 Imports, Inc. 18,200 321
--------
2,225
Consumer Services - 6.0%
Anchor Gaming (b) 5,000 201
Cole National Corp. (b) 5,900 155
Emmis Broadcasting Corp. `A' (b) 4,500 147
Ethan Allen Interiors, Inc. 4,400 169
Gilat Satellite Networks Limited (b) 12,100 298
Ha-Lo Industries, Inc. (b) 5,125 141
Ross Stores, Inc. (b) 7,200 360
Seattle Filmworks, Inc. (b) 7,300 149
Sodak Gaming, Inc. (b) 8,300 128
Southern Energy Homes, Inc. (b) 15,700 181
--------
1,929
Consumer Staples - 2.1%
Morningstar Group, Inc. (b) 7,900 155
Riser Foods, Inc. 5,400 171
Universal Corp. 10,800 347
--------
673
Energy - 10.7%
Belden & Blake Corp. (b) 14,400 367
Camco International, Inc. 9,300 429
CN Falcon Drilling Co. (b) 13,100 514
Pool Energy Services Co. (b) 24,400 375
Pride Petroleum Services, Inc. (b) 18,700 435
Swift Energy Co. (b) 15,100 451
Veritas DGC, Inc. (b) 24,800 459
Vintage Petroleum, Inc. 11,200 386
--------
3,416
Financial & Business Services - 27.2%
Allied Group, Inc. 11,400 372
Associated Banc-Corp. 8,587 365
Banctec, Inc. (b) 13,100 270
Beacon Properties Corp. 5,000 183
Capital Re Corp. 9,900 462
Centura Banks, Inc. 9,300 415
City National Corp. 19,600 424
Colonial Bancgroup, Inc. 8,300 332
Conseco, Inc. 4,360 278
Executive Risk, Inc. 10,500 389
Felcor Suite Hotels, Inc. 4,400 156
First Midwest Bancorp, Inc. 15,125 493
Frontier Insurance Group, Inc. 3,700 142
HCC Insurance Holdings, Inc. 15,300 367
Highwoods Properties, Inc. 4,900 165
Hospitality Properties Trust 5,500 160
Innkeepers USA Trust 11,900 165
Magna Group, Inc. 11,500 339
MMI Companies, Inc. 12,900 416
Patriot American Hospitality 4,000 173
Penncorp Financial Group, Inc. 8,600 310
Peoples Heritage Financial Group 15,400 431
Philadelphia Consolidated
Holdings Corp. (b) 400 9
Protective Life Corp. 10,700 427
Reinsurance Group of America 8,000 377
Susquehanna Bancshares, Inc. 9,700 336
UST Corp. 17,200 355
Westamerica Bancorp. 6,900 398
--------
8,709
Health Care - 4.4%
Ballard Medical Products 8,100 151
Curative Health Services, Inc. (b) 6,100 169
Inphynet Medical Management, Inc. (b) 7,600 137
Orthodontic Centers of America, Inc. (b) 12,100 194
Physio-Control International Corp. (b) 8,300 187
Prime Medical Services (b) 11,100 121
Rexall Sundown, Inc. (b) 8,700 237
TECHNOL Medical Products (b) 2,200 33
Universal Health Services, Inc. (b) 6,200 177
--------
1,406
Materials & Processing - 8.3%
CN Foamex International (b) 11,600 191
Lone Star Industries, Inc. 9,900 365
Medusa Corp. 11,500 395
Mississippi Chemical Corp. 14,100 338
Mueller Industries, Inc. (b) 10,100 389
Oregon Metallurgical Corp. (b) 5,500 177
RMI Titanium Co. (b) 10,400 293
Zeigler Coal Holding Co. 23,700 506
--------
2,654
Technology - 12.5%
Aspect Telecommunications (b) 6,600 419
Black Box Corp. (b) 5,700 235
Chips & Technologies, Inc. (b) 8,000 146
Comverse Technology, Inc. 4,300 163
Datastream Systems, Inc. (b) 13,300 239
DSP Communications, Inc. (b) 7,600 147
Dynatech Corp. (b) 3,500 155
Eltron International, Inc. (b) 1,900 38
Envoy Corp. (b) 3,600 135
ESS Technology (b) 7,600 214
Genrad, Inc. (b) 8,200 191
Hadco Corp. (b) 3,700 181
Periphonics Corp. (b) 7,900 231
Rational Software Corp. (b) 8,300 328
Sanmina Corp. (b) 7,100 401
Supertex, Inc. (b) 13,000 171
Xircom, Inc. (b) 7,800 169
Veritas Software Corp. (b) 8,750 435
--------
3,998
Transportation - 1.2%
Greenwich Air Services `B' (b) 17,000 378
</TABLE>
40
<PAGE>
<TABLE>
<CAPTION>
Value
Shares (000's)
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Utilities - 1.7%
Oneok, Inc. 10,600 $ 318
Vanguard Cellular Systems (b) 15,300 240
--------
558
--------
Total Common Stocks 30,205
========
(Cost $24,968)
- -----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS - 5.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Principal
Amount
(000's)
Repurchase Agreement - 5.5%
State Street Bank $ 1,761 1,761
4.000% due 01/02/97
(Dated 12/31/96. Collateralized by
U.S. Treasury Bond 7.125% due
02/15/23 valued at $1,796,950.
Repurchase proceeds are $1,761,391.)
--------
Total Short-Term Instruments 1,761
========
(Cost $1,761)
Total Investments (a) - 99.8% $ 31,966
(Cost $26,729)
Other Assets and Liabilities (Net) - 0.2% 55
--------
Net Assets - 100.0% $ 32,021
========
Notes to Schedule of Investments ($ in thousands):
(a) At December 31, 1996, the net unrealized appreciation (depreciation) of
investments based on cost for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 5,750
Aggregate gross unrealized depreciation for
all investments in which there was an excess
of tax cost over value. (513)
--------
Unrealized appreciation-net $ 5,237
========
(b) Non-income producing security.
</TABLE>
See Notes to Financial Statements
41
<PAGE>
SCHEDULE OF INVESTMENTS
Columbus Circle Investors Core Equity Fund
December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
Value
Shares (000's)
===============================================================================
COMMON STOCKS - 86.4%
===============================================================================
<S> <C> <C>
Capital Goods - 3.2%
Armstrong World Industries, Inc. 9,000 $ 626
Lockheed Martin Corp. 9,000 824
---------
1,450
Consumer Discretionary - 13.1%
American Stores Co. 14,300 585
Autozone, Inc. (b) 16,000 440
Avon Products, Inc. 7,000 400
Disney (Walt) Productions Co. 7,000 487
Gillette Co. 1,700 132
Home Depot, Inc. 7,800 391
Nike, Inc. 9,000 538
Price Costco (b) 26,900 676
Staples, Inc. (b) 36,300 656
TJX Cos., Inc. 19,500 924
Toys `R' Us (b) 24,400 732
---------
5,961
Consumer Services - 4.6%
CUC International, Inc. (b) 15,800 375
Hilton Hotels Corp. 33,700 880
Service Corp. 27,700 775
---------
2,030
Consumer Staples - 1.6%
Kimberly Clark Corp. 7,800 743
Energy - 7.6%
Atlantic Richfield Co. 5,300 702
Burlington Resources, Inc. 10,600 534
Schlumberger Limited 12,300 1,228
Transocean Offshore, Inc. 5,600 351
USX Marathon Group 27,400 654
---------
3,469
Financial & Business Services - 8.3%
Allstate Corp. 21,200 1,227
Chase Manhattan Corp. 11,800 1,053
Merrill Lynch Co. 6,100 497
NationsBank Corp. 10,200 997
---------
3,774
Health Care - 12.5%
American Home Products 7,500 440
Cardinal Health, Inc. 7,300 425
Columbia HCA Healthcare Corp. 22,070 899
Eli Lilly & Co. 7,800 569
HBO & Co. 17,500 1,039
Health Management Associates `A' (b) 17,500 394
Johnson & Johnson 15,100 751
Medtronic, Inc. 8,200 558
Pfizer, Inc. 7,600 630
---------
5,705
Materials & Processing - 1.4%
IMC Global, Inc. 16,800 657
Technology - 29.8%
Adaptec, Inc. (b) 16,300 652
Apple Computer (b) 19,100 399
Ascend Communications, Inc. (b) 11,800 733
Associates First Capital 13,900 613
Boeing 13,900 1,479
Cabletron Systems, Inc. (b) 8,600 286
Cisco Systems (b) 14,300 910
Computer Associates International, Inc. 12,975 646
Computer Sciences (b) 9,000 739
First Data Corp. 13,900 507
Honeywell, Inc. 10,600 697
Intel Corp. 11,800 1,545
International Business Machines Corp. 3,300 498
Lucent Technologies 19,600 907
Microsoft Corp. (b) 13,100 1,082
Netscape Communications Corp. (b) 11,900 677
Qualcomm, Inc. (b) 11,000 439
U.S. Robotics Corp. (b) 10,600 763
---------
13,572
Utilities - 4.3%
Sonat, Inc. 12,300 633
Worldcom, Inc. (b) 50,000 1,303
---------
1,936
---------
Total Common Stocks 39,297
(Cost $34,590) =========
</TABLE>
<TABLE>
<CAPTION>
===============================================================================
SHORT-TERM INSTRUMENTS - 13.3%
===============================================================================
Principal
Amount
(000's)
<S> <C> <C>
Repurchase Agreement - 13.3%
State Street Bank $ 6,067 6,067
4.000% due 01/02/97
(Dated 12/31/96. Collateralized by
U.S. Treasury Bond 7.125% due
02/15/23 valued at $6,191,900.
Repurchase proceeds are $6,068,348.)
---------
Total Short-Term Instruments 6,067
(Cost $6,067) =========
Total Investments (a) - 99.7% $ 45,364
(Cost $40,657)
Other Assets and Liabilities (Net) - 0.3% 123
---------
Net Assets - 100.0% $ 45,487
---------
Notes to Schedule of Investments ($ in thousands):
(a) At December 31, 1996, the net unrealized
appreciation (depreciation) of investments
based on cost for federal income tax purposes
was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 5,266
Aggregate gross unrealized depreciation for
all investments in which there was an excess
of tax cost over value. (559)
---------
Unrealized appreciation-net $ 4,707
=========
(b) Non-income producing security.
</TABLE>
See Notes to Financial Statements
42
<PAGE>
SCHEDULE OF INVESTMENTS
Columbus Circle Investors Mid Cap Equity Fund
December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
Value
Shares (000's)
===============================================================================
COMMON STOCKS - 91.7%
===============================================================================
<S> <C> <C>
Capital Goods - 10.8%
Coltec Industries, Inc. (b) 8,400 $ 159
Fleetwood Enterprises, Inc. 3,600 99
Harnischfeger Industries, Inc. 3,600 173
James River Corp. 3,600 119
Paccar, Inc. 1,100 75
U.S.A. Waste Services, Inc. (b) 7,200 230
---------
855
Consumer Discretionary - 13.7%
Diebold, Inc. 3,950 248
Gucci, Inc. (b) 1,600 102
Harley Davidson, Inc. 2,000 94
International Game Technology 6,900 126
Jones Apparel Group, Inc. (b) 4,500 168
Mohawk Industries, Inc. (b) 4,500 99
Omnicom Group, Inc. 1,900 87
Sunbeam-Oster, Inc. 6,300 162
---------
1,086
Consumer Services - 13.1%
APAC Teleservices, Inc. (b) 7,700 295
Doubletree Corp. (b) 2,000 90
Gartner Group, Inc. (b) 3,700 144
MGM Grand, Inc. (b) 4,400 153
Peoplesoft, Inc. (b) 2,100 101
Regal Cinemas, Inc. (b) 3,900 120
Williams - Sonoma, Inc. (b) 3,700 135
---------
1,038
Consumer Staples - 4.1%
Dean Foods 2,500 81
Tyson Foods, Inc. `A' 4,600 158
Vons Cos. (b) 1,400 84
---------
323
Energy - 10.9%
Columbia Gas Systems, Inc. 2,500 159
Diamond Offshore Drilling (b) 2,100 120
Ensco International, Inc. (b) 3,800 184
Helmerich & Payne 1,600 83
Nabors Industries, Inc. (b) 5,400 104
Oryx Energy Co. (b) 3,200 79
Tosco Corp. 1,700 135
---------
864
Financial & Business Services - 7.5%
Dime Bancorp, Inc. (b) 6,200 91
Everest Reinsurance Holdings, Inc. 4,800 138
Greenpoint Financial Corp. 3,800 180
Washington Mutual, Inc. 4,200 182
---------
591
Health Care - 6.2%
BioChem Pharma, Inc. (b) 3,700 186
Jones Medical Industries, Inc. 3,700 136
Phycor, Inc. (b) 2,900 82
Revco D.S., Inc. (b) 2,400 88
---------
492
Technology - 23.1%
Acxiom Corp. (b) 4,500 108
Adaptec, Inc. (b) 4,200 168
Altera Corp. (b) 2,600 189
American Management Systems (b) 5,500 135
Baan Co. (b) 3,800 132
Compuware Corp. (b) 1,500 75
Fore Systems (b) 5,100 168
National Semiconductor (b) 4,900 119
Netscape Communications Corp. (b) 2,900 165
Qualcomm, Inc. (b) 3,700 148
Rational Software Corp. (b) 2,300 91
Sterling Commerce, Inc. (b) 4,300 152
Tech Data Corp. (b) 3,300 90
VLSI Technology, Inc. (b) 3,500 83
---------
1,823
Transportation - 1.3%
Gulfstream Aerospace Corp. (b) 4,200 102
Utilities - 1.0%
LCI International, Inc. (b) 3,600 77
---------
Total Common Stocks 7,251
(Cost $6,319) =========
</TABLE>
<TABLE>
<CAPTION>
===============================================================================
SHORT-TERM INSTRUMENTS - 6.4%
===============================================================================
Principal
Amount
(000's)
<S> <C> <C>
Repurchase Agreement - 6.4%
State Street Bank $ 501 501
4.000% due 01/02/97
(Dated 12/31/96. Collateralized by
U.S. Treasury Bill due 06/26/97
valued at $511,861. Repurchase
proceeds are $501,111.)
---------
Total Short-Term Instruments 501
(Cost $501) =========
Total Investments (a) - 98.1% $ 7,752
(Cost $6,820)
Other Assets and Liabilities (Net) - 1.9% 152
---------
Net Assets - 100.0% $ 7,904
=========
Notes to Schedule of Investments ($ in thousands):
(a) At December 31, 1996, the net unrealized
appreciation (depreciation) of investments
based on cost for federal income tax purposes
was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 1,111
Aggregate gross unrealized depreciation for all
investments in which there was an excess of
tax cost over value. (179)
---------
Unrealized appreciation-net $ 932
=========
(b) Non-income producing security.
</TABLE>
See Notes to Financial Statements
43
<PAGE>
SCHEDULE OF INVESTMENTS
Parametric Enhanced Equity Fund
December 31, 1996 (unaudited)
Value
Shares (000's)
- -----------------------------------------------------------------------
COMMON STOCKS-97.5%
- -----------------------------------------------------------------------
Capital Goods - 6.5%
Armstrong World Industries 1,800 $ 125
Case Corp. 3,100 169
Caterpillar, Inc. 9,800 737
Centex Corp. 1,200 45
Deere & Co. 13,100 532
Fleetwood Enterprises, Inc. 1,500 41
General Electric 4,800 475
James River Corp. 6,200 205
Johnson Controls, Inc. 4,700 390
Nacco Industries, Inc. 400 21
Northrop Grumman Corp. 2,300 190
Raychem Corp. 1,900 152
USX-U.S. Steel, Inc. 2,700 85
------------
3,167
Consumer Discretionary - 13.5%
American Greetings `A' 4,200 119
Brunswick Corp. 4,200 101
Chrysler Corp. 11,000 363
Eastman Kodak 14,000 1,124
Fleming Cos., Inc. 2,493 43
FMC Corp. 600 42
Ford Motor Co. 10,600 338
Fruit of the Loom, Inc. (b) 8,600 326
General Motors Corp. 8,400 468
Hasbro, Inc. 3,700 144
Kroger Co. (b) 7,400 344
Limited, Inc. 18,200 334
Liz Claiborne, Inc. 3,100 120
Masco Corp. 4,500 162
Moore Limited 7,300 149
New York Times Co. 5,500 209
Nike, Inc. 1,200 72
Pitney Bowes, Inc. 9,900 540
Ralston-Ralston Purina Group 1,801 132
Russell Corp. 2,800 83
Unilever NV 2,500 438
UST, Inc. 14,400 466
VF Corp. 5,300 358
Wal-Mart Stores, Inc. 2,700 62
------------
6,537
Consumer Services - 6.4%
Dayton Hudson Corp. 24,500 962
HFS, Inc. (b) 5,500 329
Hilton Hotels Corp. 7,600 199
Kaufman & Broad Homes 4,400 57
King World Productions (b) 1,700 63
Knight-Ridder, Inc. 3,900 149
Mattel, Inc. 17,275 479
Sears Roebuck 18,100 835
------------
3,073
Consumer Staples - 8.0%
Anheuser Busch 13,300 532
Archer-Daniel Midland 36,675 807
Campbell Soup Co. 4,300 345
Coca-Cola Co. 9,100 479
Great Atlantic & Pacific Tea Company, Inc. 1,500 48
Kimberly Clark Corp. 1,700 162
Philip Morris Co., Inc. 9,600 1,081
Sara Lee Corp. 8,800 328
Supervalu, Inc. 2,500 71
------------
3,853
Energy - 7.8%
Ashland, Inc. 2,800 123
Atlantic Richfield Co. 3,000 398
Baker Hughes, Inc. 9,000 311
Burlington Resources, Inc. 2,600 131
Exxon Corp. 2,600 255
Helmerich & Payne 1,100 57
McDermott International, Inc. 2,400 40
Occidental Petroleum Corp. 19,400 453
Oryx Energy Co. 7,600 188
Phillips Petroleum Co. 5,500 243
Rowan Cos., Inc. (b) 3,700 84
Royal Dutch Petroleum Co. 3,300 563
Santa Fe Energy Resources 3,900 54
Texaco, Inc. 3,868 380
Unocal Corp. 129 5
USX Marathon Group 19,400 463
------------
3,748
Financial & Business Services - 12.8%
Allstate Corp. 7,100 411
Beneficial Corp. 2,300 146
Chase Manhattan Corp. 8,779 784
Cigna Corp. 3,000 410
Citicorp 4,283 441
Dean Witter Discover & Co. 8,200 543
First Chicago Corp. 5,350 288
First Union Corp. 6,715 497
Fleet Financial Group, Inc. 6,600 329
Household International, Inc. 800 74
Loews Corp. 8,400 792
NationsBank Corp. 6,166 603
Providian Corp. 4,000 206
Safeco Corp. 4,100 162
Salomon, Inc. 3,800 179
St. Paul Cos., Inc. 3,600 211
Torchmark Corp. 2,600 131
------------
6,207
Health Care - 13.5%
Abbott Laboratories 13,200 670
American Home Products 16,400 961
Amgen, Inc. (b) 2,600 141
Becton Dickinson 9,600 416
Beverly Enterprises 9,200 117
Biomet, Inc. 5,000 76
Bristol Myers Squibb 4,400 479
Columbia HCA Healthcare Corp. 11,000 448
Johnson & Johnson 8,600 428
Mallinckrodt Group, Inc. 3,200 141
Manor Care, Inc. 2,700 73
Merck & Co., Inc. 11,900 943
Pfizer, Inc. 2,800 232
Pharmacia & Upjohn, Inc. 6,100 242
Schering-Plough 11,100 719
Tenet Healthcare Corp. 15,700 343
U.S. Surgical Corp. 2,700 106
------------
6,535
Materials & Processing - 4.7%
Dow Chemical 4,500 353
du Pont (E.I.) de Nemours 6,200 585
Engelhard Corp. 2,350 45
Morton International 10,200 416
PPG Industries, Inc. 5,700 320
Praxair, Inc. 6,100 281
Union Carbide Corp. 6,900 282
------------
2,282
44
<PAGE>
<TABLE>
<CAPTION>
Value
Shares (000's)
- -----------------------------------------------------------------------
<S> <C> <C>
Technology - 13.6%
Apple Computer (b) 4,500 $ 94
Bay Networks, Inc. (b) 1,700 35
Cabletron Systems, Inc. (b) 4,300 143
Ceridian Corp. (b) 2,300 93
Compaq Computer Corp. (b) 10,100 750
Computer Associates International, Inc. 2,875 143
EMC Corp. (b) 9,400 311
Harris Corp. 1,700 117
Hewlett Packard Co. 12,600 633
Intel Corp. 9,900 1,296
International Business Machines Corp. 3,800 574
Microsoft Corp. (b) 8,600 711
Novell, Inc. (b) 12,900 122
Oracle Systems Corp. (b) 125 5
Raytheon Co. 4,300 207
Seagate Technology (b) 13,000 514
Sun Microsystems, Inc. (b) 17,200 442
Tandem Computers, Inc. (b) 8,500 117
Tektronix 4,700 241
------------
6,548
Transportation - 2.4%
AMR Corp. (b) 3,300 291
CSX Corp. 8,600 363
Delta Air Lines 3,100 220
Laidlaw Inc. `B' 11,300 129
Timken Co. 2,100 96
U.S. Air Group, Inc. (b) 2,500 58
------------
1,157
Utilities - 8.3%
Bell South 15,470 625
Consolidated Edison Co. 11,400 333
Eastern Enterprises 2,300 81
Entergy Corp. 18,900 524
GTE Corp. 15,977 727
Nynex Corp. 16,206 780
Ohio Edison Co. 6,631 151
Owens Corning 1,900 81
P. P. & L. Resources, Inc. 7,000 161
Sonat, Inc. 10,250 527
------------
3,990
------------
Total Common Stocks 47,097
(Cost 40,861)
<CAPTION>
- -----------------------------------------------------------------------
SHORT-TERM INSTRUMENTS-0.5%
- -----------------------------------------------------------------------
Principal
Amount
(000's)
<S> <C> <C>
Repurchase Agreement - 0.5%
State Street Bank $ 228 228
4.000% due 01/02/97
(Dated 12/31/96. Collateralized by
U.S. Treasury Bond 7.125% due
02/15/23 valued at $232,738.
Repurchase proceeds are $228,051.)
------------
Total Short-Term Instruments 228
------------
(Cost $228)
Total Investments (a) - 98.0% $ 47,325
(Cost $41,089)
Other Assets and Liabilities (Net) - 2.0% 979
------------
Net Assets - 100.0% 48,304
------------
<CAPTION>
- -----------------------------------------------------------------------
Notes to Schedule of Investments ($ in thousands):
<S> <C>
(a) At December 31, 1996, the net unrealized
appreciation (depreciation) of investments
based on cost for federal income tax purposes
was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 6,815
Aggregate gross unrealized depreciation for
all investments in which there was an excess
of tax cost over value. (579)
------------
Unrealized appreciation-net $ 6,236
------------
(b) Non-income producing security.
</TABLE>
See Notes to Financial Statements
45
<PAGE>
SCHEDULE OF INVESTMENTS
Blairlogie Emerging Markets Fund
December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
Value
Shares (000's)
================================================================================
COMMON STOCKS - 98.1%
================================================================================
<S> <C> <C>
Argentina - 2.1%
Banco de Galicia Y Buenos Aires SA de CV 20,100 $ 121
Banco Frances del Rio 11,804 110
Compania Naviera Perez Co. - ADR 20,105 283
Inversiones Y Representaciones - GDR 1,084 35
Molinos Rio de la Plata 20,270 72
Siderar SA 2,946 8
Siderca SA 35,667 65
Telefonica de Argentina - ADR 7,300 189
YPF Sociedad Anonima - ADR 14,900 376
----------
1,259
Brazil - 14.7%
Aracruz Celulose SA 108,000 176
Banco Bradesco SA 89,565 649
Banco Itau SA 1,021 442
Brasmotor SA 1,114 309
Centrais Electicas Brasileiras SA 4,258 1,582
Cia Energetica Minas 10,090 344
Cia Paulista de Forca 1,406 166
Cia Tecidos Norte de Minas PR 795 254
Cia Vale Rio Doce 36,662 706
Companhia Cervejaria Brahma 610 334
Companhia Siderurgica Nacional 6,060 172
Duratex SA 6,483 243
Petrol Brasileiros 2,695 429
Souza Cruz SA 27,500 181
Telecomunicacoes Brasileiras - ADR 19,650 1,503
Telecomunicacoes Brasileiras 9,100 653
Usinas Siderurgicas de Minas Gerais 323,194 330
White Martins SA 174,000 251
----------
8,724
Chile - 2.3%
Banco Santander Chile SP - ADR 10,700 161
Chilgener SA - ADR 5,800 121
Compania Cervecerias Unidas - ADR 3,400 55
Compania de Telefonos de Chile - ADR 3,464 350
Empresa Nacional de Electric - ADR 14,500 225
Enersis SA - ADR 8,100 225
Madeco SA - ADR 2,900 70
Maders Y Sinteticos Sociedad - ADS 4,590 64
Sociedad Quimica Y Minera de Chile - ADR 1,280 69
----------
1,340
Colombia - 2.4%
Banco Ganadero SA - ADR 5,800 117
Banco Industrial Colombiano - ADR 32,200 666
Carulla - ADR 45,840 195
Cementos Diamante - ADR 11,500 150
Cementos Paz Del Rio - ADR (b) 23,800 302
----------
1,430
Hungary - 2.3%
Borsodchem Rt. 6,200 152
EGIS Gyogyszergyar Rt. 3,400 195
Graboplast Rt. 4,200 139
MOL Magyar Olaj - es Gazipare Rt. 25,700 314
OTP Bank Rt. 13,400 235
Richter Gedeon Rt. 6,000 343
----------
1,378
India - 6.3%
Bajai Auto - GDR 8,770 298
BSES Limited - GDR 8,500 175
Century Textiles and Industries Limited 770 39
EIH Limited - GDR 7,960 188
Grasim Industries - GDS 17,300 264
Hindalco Industries - GDR 23,880 588
Indian Aluminium - GDR 43,100 218
Indian Hotels Co. - GDR 15,100 382
Indian Rayon & Industries Limited - GDR 18,350 156
Larsen & Tourbro Limited - GDR 20,080 291
Raymond Limited 29,550 177
Reliance Industries - GDS 15,320 184
State Bank of India - GDR 11,800 205
Steel Authority of India - GDR 19,800 190
Tata Engineering and Locomotive Co.
Limited - GDR 37,424 398
----------
3,753
Indonesia - 3.4%
Bank International Indonesia 594,450 585
Bimantara Citra 251,000 335
H.M. Sampoerna 52,000 277
PT Indah Kiat Paper Pulp and Paper Corp. 189 0
PT Semen Gresik 57,000 183
Telekomunikasi Indonesia - ADR 12,800 442
United Tractors 86,500 181
----------
2,003
Israel - 6.5%
Bank Hapoalim 329,300 522
Bezek Israeli Telecommunication
Corp. Limited 88,800 215
Blue Square Chain Stores Limited 26,500 378
Clal Industries Limited 55,000 263
Elite Industries 48,000 236
ICL Israel Chemical 408,000 352
Koor Industries 4,100 357
Osem Investment 38,136 214
Super Sol 8,680 213
Tadiran Limited 66,200 301
Tadiran Telecommunications 9,080 203
Teva Pharmaceutical Industries - ADR 3,900 196
Teva Pharmaceutical Industries 840 421
----------
3,871
Malaysia - 13.8%
DCB Holdings Berhad 175,000 599
Gamuda Berhad 175,000 741
Gamuda Berhad Rights (b) 75,000 0
Gamuda Berhad Warrants (b) 75,000 0
IOI Properties Berhad 155,000 503
Jaya Tiasa Holdings Berhad 121,000 642
Land & General Holdings Berhad 232,000 556
Metacorp Berhad 189,000 483
Perusahaan Otomobil Nasi 84,000 532
Public Bank Berhad 315,666 669
Road Builder (M) Holdings Berhad 107,400 608
Sungei Way Holdings Berhad 204,000 606
Sungei Way Holdings Berhad Rights (b) 102,000 0
Telekom Malaysia Berhad 110,000 980
UMW Holdings Berhad 117,000 547
United Engineers 79,000 713
----------
8,179
Mexico - 11.0%
Alfa SA de CV 49,000 226
Apasco SA 28,000 192
Cemex SA 114,500 409
Cifra SA `B' 307,980 377
Controladora Commercial 101,100 91
Desc SA de CV `B' 36,000 196
Desc SA de CV `C' 1,312 7
Empresas Ica Sociedad 9,120 134
Empresas La Moderna SA de CV 39,500 195
Femento Economico Mexicano SA de CV 85,000 291
</TABLE>
46
<PAGE>
<TABLE>
<CAPTION>
Value
Shares (000's)
================================================================================
<S> <C> <C>
Grupo Carso SA de CV `A' 81,000 $ 428
Grupo Financiero Banamex 370,007 727
Grupo Mexico SA (b) 73,260 228
Grupo Modelo SA de Cv 63,000 365
Grupo Televisa - GDS (b) 14,410 369
Industrias Penoles SA 52,600 186
Kimberly Clark de Mexico 23,700 467
Telefonos de Mexico - ADR 44,950 1,483
Transport Maritima - ADR 750 4
Tubos de Acero de Mexico (b) 8,900 141
----------
6,516
Pakistan - 0.8%
DG Kahn Cement (b) 97,010 22
Engro Chemical Pakistan 18,400 62
Fauji Fertilizer Co. 53,900 91
Faysal Bank 71,700 38
Hub Power Co. - GDR (b) 4,700 99
Pakistan State Oil 16,523 107
Pakistan Telecommunications - GDS 400 27
Sui Southern Gas Co. Limited (b) 28,750 17
----------
463
Peru - 1.9%
Banco Wiese - ADR (b) 18,400 108
Cerveceria Backus Y Johnston SA 66,688 57
Compania de Minas Buenaventura SA 4,624 38
Credicorp Limited 7,244 134
Enrique Ferreyros SA 40,500 39
Luz Del Sur Servicios SA (b) 84,000 101
Minas Buenaventura 8,497 62
Minsur SA 5,500 19
Southern Peru Copper 28,600 99
Telefonica del Peru SA 249,338 464
----------
1,121
Philippines - 4.7%
Ayala Corp. 387,000 419
Metro Bank and Trust Co. 20,950 518
Petron Corp. 621,775 210
Philippine Long Distance
Telephone - ADR 7,800 398
San Miguel Corp. 175,970 776
SM Prime Holdings, Inc. 1,794,000 464
----------
2,785
Poland - 3.9%
Bank Rozwoju Eksportu 18,610 558
Bank Slaski 3,380 344
Debica 15,280 341
Elektrim Spolka Akcyjna SA 87,131 790
Polifarb Cieszyn 46,240 256
----------
2,289
Portugal - 3.7%
Banco Totta & Acores SA 13,400 253
Cimpor Cimentos 12,140 261
Investec Consulting 7,600 235
Jeronimo Martins 5,627 290
Jeronimo Martins Rights (b) 2,812 143
Portugal Telecommunications 21,210 604
Sonae Investmentos 12,100 383
----------
2,169
South Africa - 6.5%
Barlow Limited 20,580 183
De Beers Consolidated 16,340 469
Driefontein Consolidated Limited 42,000 442
Gencor 105,810 384
Liberty Life Association of Africa 10,450 262
Metro Cash and Carry 65,820 218
Murray and Roberts Holdings 34,330 77
Nasionale Pers Limited 32,700 302
Nedcor - GDR 31,250 430
Norwich Holdings 63,800 112
Rembrandt Group 37,640 336
Sasol Limited 17,000 202
Smith C.G. Limited 23,930 117
South African Breweries 13,490 342
----------
3,876
South Korea - 4.9%
Cho Hung Bank 41,316 329
Daewoo Securities Co. (b) 8,700 112
Hanwha Chemical Corp. (b) 20,200 157
Korea Electric Power 22,600 678
Korea Fund, Inc. 37,000 555
Korea Kumho Petrochemical 37,600 311
Korean Airlines Co. 1,170 19
Pohang Iron & Steel ADR 4,900 99
Samsung Corp. - GDS 15,850 50
Samsung Corp. 1,172 4
Samsung Electronics Co. 4,500 263
Samsung Heavy Industries 29,500 306
----------
2,883
Taiwan - 0.7%
Advanced Semiconductor
Engineering - GDR (b) 13,500 132
China Steel Corp. - GDS 14,350 286
----------
418
Thailand - 2.5%
Bangkok Bank 60,100 581
Cogeneration Public Co. 49,100 183
Electricity Generating Public
Company Limited 61,400 168
Krung Thai Bank Limited 150,500 291
Thai Farmers Bank 40,500 253
----------
1,476
Turkey - 3.7%
Adana Cimento 3,015,000 161
Akaltekstil 1,882,500 128
Akbank Tas 1,965,000 267
Arcelik AS 1,844,500 187
Demirbank 3,853,000 134
Eczacibasi Yapi Gerecleri
Sanayi ve Ticaret Asm 4,869,000 198
Erciyas Birac ve Malt Sanayii 1,484,000 161
Eregli Demir ve Celik Fabrikalari TAS 907,000 109
Goodyear Lastikleri Tas 292,000 132
Izmir Demir Celik Sanayii AS 14,982,000 126
Migros Turk TAS 143,800 176
Netas Telekomunik 1,130,000 255
Turkey Sise Ve Cam Fabrika 1,599,000 170
----------
2,204
----------
Total Common Stocks 58,137
(Cost 56,268) ==========
</TABLE>
47
<PAGE>
SCHEDULE OF INVESTMENTS (Cont.)
Blairlogie Emerging Markets Fund
December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000's) (000's)
================================================================================
CORPORATE BONDS AND NOTES - 0.5%
================================================================================
<S> <C> <C>
Taiwan - 0.5%
Far Eastern Department Stores
3.000% due 07/06/01 $ 75 $ 79
Nan Ya Plastics
1.750% due 07/19/01 180 205
----------
Total Corporate Bonds and Notes 284
(Cost $272) ==========
Total Investments (a) - 98.6% $ 58,421
(Cost 56,540)
Other Assets and Liabilities (Net) - 1.4% 849
----------
Net Assets - 100.0% $ 59,270
==========
Notes to Schedule of Investments ($ in thousands):
(a) At December 31, 1996, the net unrealized
appreciation (depreciation) of investments
based on cost for federal income tax purposes
was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 7,372
Aggregate gross unrealized depreciation for
all investments in which there was an excess
of tax cost over value. (5,491)
----------
Unrealized appreciation-net $ 1,881
==========
(b) Non-income producing security.
</TABLE>
See Notes to Financial Statements
48
<PAGE>
SCHEDULE OF INVESTMENTS
Blairlogie International Active Fund
December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
Value
Shares (000's)
- --------------------------------------------------------------------------------
COMMON STOCKS - 91.2%
- --------------------------------------------------------------------------------
<S> <C> <C>
Australia - 1.0%
Amcor Limited 14,800 $ 95
Broken Hill Proprietary Co. 12,022 171
Comalco Limited 16,200 85
David Jones Limited 33,800 47
Leighton Holdings Limited 10,400 45
News Corp. 18,600 98
TABCORP Holdings Limited 8,850 42
Westpac Banking Corp. 26,700 152
WMC Limited 23,300 147
-------
882
Denmark - 1.6%
Bang & Olufsen Holding A/S 2,680 130
Carlsberg A/S `B' 1,520 103
Danisco A/S 1,390 84
Den Danske Bank 1,990 160
ISS International Services System A/S 5,600 147
Kobenhavns Lufthavne A/S 1,040 106
Novo Nordisk A/S `B' 1,190 224
Sophus Berends A/S 1,560 201
Tele Denmark A/S 6,040 333
-------
1,488
Finland - 3.6%
Hartwall Oy AB 5,850 257
Kemira Oy 9,650 122
Metsa Serla Oy `B' 27,890 209
Neste Oy 9,030 220
Nokia Corp. 15,210 880
Stockman AB 3,990 239
Upm-Kymmene Corp. Oy 14,380 302
Valmet Corp. 15,500 273
Viking Line AB 4,000 148
Werner Soderstrom Osakeyhtio `B' 17,800 445
Yit Huber Oy 13,680 160
-------
3,255
France - 4.8%
Alcatel Alsthom 4,260 342
AXA 6,940 441
BIC 2,077 311
Carrefour SA 652 424
Clarins 1,273 187
Compagine Banicare SA 2,320 274
Compagnie de Saint-Gobain 2,645 374
Elf Aquitaine SA 5,312 483
Lafarge SA 6,000 360
Rhone Poulenc SA 11,090 378
Schneider SA 5,211 241
Societe Generale 2,960 320
Valeo SA 3,610 223
-------
4,358
Germany - 9.7%
Allianz AG Holdings 593 1,067
Bayer AG 33,460 1,357
Commerzbank AG 14,100 358
Daimler Benz AG 7,300 500
Degussa AG 1,680 764
Dresdner Bank AG 15,000 448
Mannesmann AG 3,103 1,334
Muenchener Rueckverscherungs-
Gesellschaft AG 76 184
Muenchener Rueckverscherungs-
Gesellschaft AG Warrants (b) 3 1
Siemens AG 14,700 682
Veba AG 23,080 1,326
Volkswagen AG 2,140 886
-------
8,907
Hong Kong - 2.8%
Cheung Kong Holdings Limited 55,000 489
Citic Pacific Limited 32,000 186
HSBC Holdings PLC 18,400 394
Hutchison Whampoa Limited 53,000 416
New World Development Co. Limited 59,000 399
Sun Hung Kai Properties Limited 34,816 427
Swire Pacific Limited `A' 29,400 280
-------
2,591
Ireland - 1.5%
Allied Irish Banks 52,200 347
Bank of Ireland 24,300 220
CRH PLC 25,700 266
Irish Life PLC 30,000 139
Kerry Group 12,300 125
Smurfit 96,400 284
--------
1,381
Italy - 3.4%
Credito Italiano 287,000 315
Danieli & Co. 21,000 173
Eni SpA 70,800 363
Fiat SpA 69,000 209
Istituto Mobiliare Italiano SpA 33,000 283
Istituto Nazionale delle Assicurazioni 250,000 325
Montedison SpA 310,420 211
Parmalat Finanziaria SpA 94,800 145
Pirelli SpA 109,000 202
Sasib RNC 101,000 189
Stet Societa Finanziaria Telefonica SpA 88,000 400
Telecom Italia SpA 132,000 343
--------
3,158
Japan - 25.7%
Aoyama Trading Co. Limited 43,000 1,141
Daiwa Securities Co. Limited 126,000 1,118
Fujisawa Pharmaceutical 173,000 1,550
Komori Corp. 35,000 742
Marubeni Corp. 272,000 1,167
Matsushita Electric Works 160,000 1,374
Mitsubishi Chemical Corp. 329,000 1,063
Mitsui Fudosan Co. (b) 12,000 120
Mitsui O.S.K. Lines Limited 424,000 1,012
Murata Manufacturing Co., Limited 41,000 1,360
NEC Corp. 142,000 1,713
Nippon Oil Co. Limited 212,000 1,087
Nippon Telegraph & Telephone Corp. 169 1,278
NKK Corp. (b) 531,000 1,194
Sumitomo Bank 100,000 1,439
Sumitomo Metal Mining Co. 136,000 915
Sumitomo Trust & Banking 135,000 1,349
Tokyo Electric Power 54,500 1,193
Tokyo Electron Limited 20,000 612
Tokyo Steel Manufacturing 68,700 977
Tokyu Corp. 200,000 1,134
--------
23,538
Malaysia - 6.1%
DCB Holdings Berhad 95,000 325
Edaran Otomobil Nasional 47,000 470
IOI Properties Berhad 150,000 487
Land & General Holdings Berhad 224,000 537
Malayan Banking Berhad 52,000 577
Metacorp Berhad 161,000 411
Resorts World Berhad 66,000 301
Road Builder (M) Holdings Berhad 116,412 659
</TABLE>
49
<PAGE>
SCHEDULE OF INVESTMENTS (Cont.)
Blairlogie International Active Fund
December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
Value
Shares (000's)
============================================================================
<S> <C> <C>
Sungei Way Holdings Berhad 190,000 $ 564
Sungei Way Holdings Berhad Rights (b) 95,000 0
Telekom Malaysia Berhad 77,000 686
United Engineers Berhad 60,000 542
--------
5,559
Netherlands - 4.5%
ABN-AMRO Holdings NV 4,070 265
Ahold Koninklijke 4,361 273
Akzo NV 1,940 265
DSM NV 1,850 182
Elsevier NV 22,251 376
Fortis Amev NV 5,035 176
ING Groep NV 6,195 223
Royal Dutch Petroleum Co. 6,700 1,174
Unilever NV 3,566 631
Vendex International NV 6,800 291
VNU-Verenigde Nederlandse
Uitgeversbedrijven Verenigd Bezit 10,800 226
--------
4,082
Singapore - 1.0%
Comfort Group Limited 91,000 81
Cycle & Carriage Limited 8,000 98
DBS Land 30,000 110
Hong Leong Finance Limited 25,000 87
Keppel Corp. 12,000 93
Overseas Chinese Banking Corp. Limited 15,100 188
Overseas Union Bank Limited 27,000 208
Straits Steamship Land Limited 28,000 90
--------
955
Spain - 3.5%
Aumar-Autopistas del Mare Nostrum SA 27,500 432
Banco Bilbao Vizcaya SA 7,110 384
Banco Popular Espanol SA 1,926 378
Endesa 7,284 518
Iberdrola SA 38,042 539
Repsol SA 10,256 393
Telefonica de Espana 23,990 557
--------
3,201
Switzerland - 4.6%
ABB AG 294 365
Allusuisse-Lonza Holding AG 385 306
Clariant AG 860 367
Credit Suisse Group 7,314 750
Holderbank Financiere Glaris AG 320 228
Nestle SA 516 552
Novartis AG 771 881
Roche Holding AG 100 776
--------
4,225
United Kingdom - 17.4%
Abbey National PLC 93,900 1,230
Boots Co. PLC 76,300 787
Burmah Castrol PLC 36,300 684
Burton Group PLC 323,000 867
Commercial Union PLC 50,700 593
EMI Group PLC 31,400 742
Glynwed International PLC 90,000 516
Granada Group PLC 53,500 789
IMI PLC 110,000 707
Lloyd's TSB Group PLC 144,904 1,068
Marks & Spencer PLC 81,000 681
Pilkington PLC 51,550 138
Prudential Corp. PLC 85,100 716
Scottish & Newcastle PLC 80,000 941
Scottish Power PLC 120,180 724
Shell Transport & Trading Co. PLC 41,300 715
Smithkline Beecham PLC 81,298 1,127
Unilever PLC 30,300 735
Wolseley PLC 108,600 859
Zeneca Group PLC 45,460 1,282
--------
15,901
--------
Total Common Stocks 83,481
(Cost $78,951) ========
- ------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS - 1.6%
- ------------------------------------------------------------------------------
Principal
Amount
(000's)
Time Deposits - 1.6%
Chase Manhattan Bank
5.500% due 01/02/97 $ 1,500 1,500
--------
Total Short-Term Instruments 1,500
========
(Cost $1,500)
Total Investments (a) - 92.8% $84,981
(Cost $80,451)
Other Assets and Liabilities (Net) - 7.2% 6,582
--------
Net Assets - 100.0% $91,563
========
Notes to Schedule of Investments ($ in thousands):
(a) At December 31, 1996, the net unrealized appreciation (depreciation) of
investments based on cost for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 9,618
Aggregate gross unrealized depreciation for
all investments in which there was an excess
of tax cost over value. (5,088)
--------
Unrealized appreciation-net $ 4,530
========
</TABLE>
(b) Non-income producing security.
See Notes to Financial Statements
50
<PAGE>
SCHEDULE OF INVESTMENTS
Balanced Fund
December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
Value
Shares (000's)
================================================================================
Common Stocks - 59.7%
================================================================================
<S> <C> <C>
Capital Goods - 3.9%
Allied Signal, Inc. 3,500 $ 234
Deere & Co. 8,900 362
Johnson Controls, Inc. 3,400 282
Perkin-Elmer Corp. 4,600 271
Rockwell International Corp. (b) 4,000 244
Sundstrand Corp. 6,300 268
Textron, Inc. 2,600 245
Tyco Labs 5,500 291
United Technologies 4,000 264
---------
2,461
Consumer Discretionary - 9.7%
Armstrong World Industries 3,500 243
Brunswick Corp. 7,700 185
Chrysler Corp. 23,300 769
Dayton Hudson Corp. 6,900 271
Dillard Department Stores 12,500 386
Estee Lauder 5,600 285
Federated Department Stores, Inc. (b) 6,600 225
Goodyear Tire & Rubber 3,800 195
Harley Davidson, Inc. 5,400 254
Jones Apparel Group, Inc. (b) 4,800 179
Maytag Corp. 19,300 381
Nike, Inc. 4,600 275
Omnicom Group 5,000 229
Reebok International Limited 9,000 378
Tandy Corp. 4,400 194
TJX Cos., Inc. 6,300 298
Tupperware Corp. 7,200 386
Washington Post Co. 1,200 402
Xerox Corp. 11,500 605
---------
6,140
Consumer Services - 0.7%
Carnival Cruise Lines 7,500 247
Mirage Resorts (b) 9,900 214
---------
461
Consumer Staples - 4.8%
Anheuser Busch 13,800 552
Campbell Soup Co. 2,800 225
Food Lion, Inc. 11,100 109
Hershey Foods Corp. 2,100 92
IBP, Inc. 8,000 194
Kroger Co. (b) 5,300 247
Philip Morris Co., Inc. 3,400 383
Safeway, Inc. (b) 6,500 278
Supervalu, Inc. 13,000 369
Unilever NV 2,300 403
Whitman Corp. 7,900 181
---------
3,033
Energy - 7.0%
Amoco Corp. 4,900 394
Atlantic Richfield Co. 5,700 755
British Petroleum - ADR 1,900 269
Diamond Shamrock 18,600 588
Dresser Industries, Inc. 5,900 183
Ensco International (b) 6,500 315
Global Marine, Inc. (b) 10,600 219
Halliburton Co. 3,500 211
Panenergy Corp. 5,400 243
Repsol SA - ADR 10,600 404
Transocean Offshore, Inc. 3,800 238
Union Texas Petroleum Holdings, Inc. 17,500 392
Vastar Resources, Inc. 6,300 239
---------
4,450
Financial & Business Services - 11.6%
American Express 4,500 254
Bank of Boston Corp. 3,900 251
Bankamerica Corp. 2,500 249
Bear Stearns Cos. 27,900 778
Chase Manhattan Corp. 9,100 812
Citicorp 2,600 268
Federal Home Loan Mortgage Corp. 2,300 253
Federal National Mortgage Association 6,200 231
First Chicago Corp. 4,400 236
First Union Corp. 3,400 252
Green Tree Financial Corp. 5,200 201
Loews Corp. 2,200 207
Mellon Bank Corp. 7,800 554
National City Corp. 5,200 233
Norwest Corp. 5,800 252
PHH Corp. 13,100 563
PNC Bank Corp. 6,900 260
Providian Corp. 7,000 360
Southtrust Corp. 7,500 262
Standard Federal Bancorporation 6,600 375
TIG Holdings, Inc. 7,000 237
Travelers Group, Inc. 6,333 287
---------
7,375
Health Care - 5.3%
American Home Products 12,400 727
Beckman Instruments 5,200 199
Boston Scientific Corp. (b) 4,500 270
Eli Lilly & Co. 3,800 277
Foundation Health Corp. (b) 6,300 200
Medtronic, Inc. 3,100 211
Ornda Healthcorp (b) 7,100 208
Oxford Health Plans (b) 4,500 264
Pharmacia & Upjohn, Inc. 15,000 594
Schering-Plough 3,300 214
U.S. Surgical Corp. 5,100 201
---------
3,365
Materials & Processing - 3.1%
Bowater, Inc. 4,900 184
IMC Global, Inc. 6,300 246
Lennar Corp. 7,900 215
Olin Corp. 4,800 181
Phelps Dodge Corp. 5,500 371
Rohm & Haas Co. 2,500 204
Union Carbide Corp. 9,300 380
Wellman, Inc. 11,200 192
---------
1,973
Technology - 7.1%
3Com Corp. (b) 2,900 213
Adaptec, Inc. (b) 6,100 244
Andrew Corp. (b) 5,100 271
Cisco Systems (b) 3,400 216
Compaq Computer Corp. (b) 3,800 282
Computer Associates International, Inc. 4,075 203
Dell Computer Corp., Inc. (b) 5,000 266
Gateway 2000, Inc. (b) 4,800 257
Harris Corp. 5,400 371
Intel Corp. 2,000 262
Mentor Graphics Corp. (b) 20,000 195
Northrop Grumman Corp. 4,800 397
Raytheon Co. 8,100 390
Seagate Technology (b) 4,600 182
Storage Technology Corp. (b) 5,000 238
Sun Microsystems, Inc. (b) 7,600 195
Teradyne, Inc. (b) 8,000 195
U.S. Robotics Corp. (b) 1,300 94
---------
4,471
</TABLE>
51
<PAGE>
SCHEDULE OF INVESTMENTS (Cont.)
Balanced Fund
December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
Value
Shares (000's)
- -------------------------------------------------------------------------------
<S> <C> <C>
Transportation - 1.0%
Conrail, Inc. 1,800 $ 179
Continental Airlines `B' (b) 9,600 271
UAL Corp. (b) 3,300 206
---------
656
Utilities - 5.5%
American Electric Power, Inc. 5,200 214
Ameritech 3,700 224
Consolidated Natural Gas 3,500 193
DTE Energy Co. 12,500 405
GPU, Inc. 6,200 208
NICOR, Inc. 15,800 565
Pacific Gas & Electric 16,600 349
Pacific Telesis 15,600 573
Sprint Corp. 14,100 562
Texas Utilities Co. 4,900 200
---------
3,493
---------
Total Common Stocks 37,878
(Cost 32,510) =========
- --------------------------------------------------------------------------------
Corporate Bonds and Notes - 7.5%
- --------------------------------------------------------------------------------
<CAPTION>
Principal
Amount
(000's)
AMR Corp.
10.000% due 02/01/01 $ 400 445
9.430% due 05/10/01 1,000 1,094
Cleveland Electric
9.375% due 03/01/17 1,000 1,025
Long Island Lighting Co.
9.000% due 11/01/22 2,000 2,105
Ohio Power
8.300% due 04/01/97 45 45
--------
Total Corporate Bonds and Notes 4,714
(Cost 4,493) ========
- --------------------------------------------------------------------------------
U.S. Treasury Notes - 7.8%
- --------------------------------------------------------------------------------
5.250% due 12/31/97 5,000 4,969
--------
Total U.S. Treasury Notes 4,969
(Cost 4,991) ========
- --------------------------------------------------------------------------------
Mortgage-Backed Securities - 33.5%
- --------------------------------------------------------------------------------
Federal Home Loan Mortgage Corporation - 4.4%
6.500% due 02/13/27 2,000 1,909
8.500% due 03/01/23 769 807
10.150% due 04/15/06 64 64
--------
2,780
Federal Housing Administration - 0.9%
6.930% due 07/01/14 596 580
Federal National Mortgage Association - 4.0%
8.009% due 12/01/23 (d) 623 647
8.500% due 07/01/02-01/01/08 (e) 1,206 1,252
9.500% due 06/25/18 597 639
--------
2,538
Government National Mortgage Association - 17.4%
6.500% due 01/15/26-01/21/27 (e) 5,478 5,227
7.125% due 04/20/23-09/20/24 (d) (e) 4,282 4,389
7.500% due 05/15/17 18 18
8.000% due 09/15/06 78 81
8.000% due 01/21/27 500 510
9.500% due 09/15/09-10/15/09 (e) 160 174
10.750% due 09/15/00-10/15/00 (e) 158 167
14.000% due 08/15/12 31 37
16.000% due 10/15/11-04/15/12 (e) 372 438
--------
11,041
Collateralized Mortgage Obligations - 6.8%
Capstead
8.900% due 12/25/21 300 308
Home Savings
5.771% due 05/25/27 (d) 1,094 1,055
Independent National Mortgage Corp.
7.955% due 11/25/24 (d) 1,060 1,089
8.217% due 11/25/24 (d) 1,000 1,027
PNC Mortgage Securities Corp.
7.500% due 06/25/10 859 857
--------
4,336
--------
Total Mortgage-Backed Securities 21,275
(Cost 21,147) ========
- --------------------------------------------------------------------------------
Purchased CME Put Options - 0.0%
- --------------------------------------------------------------------------------
<CAPTION>
Contracts
<S> <C> <C>
Eurodollar March Futures
Strike @ 91.5 Exp. 03/17/97 55 1
--------
Total Purchased CME Put Options 1
(Cost $1) ========
- --------------------------------------------------------------------------------
Short-Term Instruments - 6.0%
- --------------------------------------------------------------------------------
<CAPTION>
Principal
Amount
(000's)
<S> <C> <C>
Discount Notes - 4.4%
Coca-Cola Co.
5.450% due 01/10/97 $ 100 100
Ford Motor Credit Corp.
6.090% due 01/09/97 800 799
5.510% due 01/10/97 300 300
G. E. Capital Corp.
5.410% due 02/10/97 500 498
General Motors Acceptance Corp.
5.530% due 01/29/97 600 597
Pitney Bowes Credit, Inc.
5.340% due 01/14/97 500 499
--------
2,793
Repurchase Agreement - 1.4%
State Street Bank
4.000% due 01/02/97 903 903
(Dated 12/31/96. Collateralized by
U.S. Treasury Note 5.625% due 06/30/97
valued at $125,137 and by U.S. Treasury
Note 7.125% due 02/15/23 valued at
$806,462. Repurchase proceeds are
$903,201.)
U.S. Treasury Bills - 0.2%
5.013% due 03/06/97-03/13/97 (c) (e) 85 85
--------
Total Short-Term Instruments 3,781
(Cost $3,779) ========
Total Investments (a) - 114.5% $ 72,618
(Cost $66,921)
Written Options (f) - 0.0% (5)
(Premium $51)
Other Assets and Liabilities (Net) - (14.5%) (9,176)
--------
Net Assets - 100.0% $ 63,437
========
</TABLE>
52
<PAGE>
Notes to Schedule of Investments ($ in thousands):
================================================================================
<TABLE>
<S> <C>
(a) At December 31, 1996, the net unrealized
appreciation (depreciation) of investments
based on cost for federal income tax purposes
was as follows:
Aggregate gross unrealized appreciation for
all investments in which there was an excess
of value over tax cost. $ 6,165
Aggregate gross unrealized depreciation for
all investments in which there was an excess
of tax cost over value. (468)
---------
Unrealized appreciation-net $ 5,697
=========
(b) Non-income producing security.
(c) Securities with an aggregate market
value of $85 have been segregated with the
custodian to cover margin requirements for
the following open future contracts at
December 31, 1996:
<CAPTION>
Unrealized
Type Contracts Depreciation
- --------------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury 10 Year Note (3/97) 29 $ (38)
U.S. Treasury 30 Year Bond (3/97) 10 (4)
---------
$ (42)
=========
(d) Variable rate security. The rate listed is
as of December 31, 1996.
(e) Securities are grouped by coupon and
represent a range of maturities.
(f) Premiums received on Written Put Options:
<CAPTION>
Premiums Market
Type Contracts Received Value
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
CME Eurodollar March Futures
Strike @ 93.00 Exp. 3/97 8 $ 3 $ 1
CME Eurodollar June Futures
Strike @ 93.25 Exp. 6/97 20 22 1
CME Eurodollar June Futures
Strike @ 93.50 Exp. 6/97 50 26 3
--------------------------
$ 51 $ 5
==========================
</TABLE>
See Notes to Financial Statements
53
<PAGE>
NOTES TO FINANCIAL STATEMENTS
December 31, 1996 (unaudited)
1. Significant Accounting Policies
PIMCO Funds: Equity Advisors Series (the "Trust") was established as a
Massachusetts business trust on August 24, 1990. The Trust is registered under
the Investment Company Act of 1940, as amended, as a no-load, open-end
management investment company. The Trust currently consists of fourteen separate
investment funds (the "Funds"): the NFJ Equity Income Fund; the NFJ Diversified
Low P/E Fund; the NFJ Small Cap Value Fund; the Cadence Capital Appreciation
Fund; the Cadence Mid Cap Growth Fund; the Cadence Micro Cap Growth Fund; the
Cadence Small Cap Growth Fund; the Columbus Circle Investors Core Equity Fund;
the Columbus Circle Investors Mid Cap Equity Fund; the Parametric Enhanced
Equity Fund; the Parametric Structured Emerging Markets Fund; the Blairlogie
Emerging Markets Fund; the Blairlogie International Active Fund; and the
Balanced Fund. The Parametric Structured Emerging Markets Fund had not commenced
operations as of December 31, 1996. The following is a summary of significant
accounting policies consistently followed by the Trust in preparation of its
financial statements. These policies are in conformity with generally accepted
accounting principles.
Security Valuation. Portfolio securities and other financial instruments for
which market quotations are readily available are stated at market value. Market
value is determined on the basis of last reported sales prices, or if no sales
are reported, as is the case for most securities traded over-the-counter, the
mean between representative bid and asked quotations obtained from a quotation
reporting system or from established market makers. Fixed income securities,
including those to be purchased under firm commitment agreements, are normally
valued on the basis of quotes obtained from brokers and dealers or pricing
services. Foreign currency amounts are converted to U.S. dollars using foreign
exchange quotations received from independent dealers. Short-term investments
having a maturity of 60 days or less are valued at amortized cost, which
approximates market value. Certain fixed income securities for which daily
market quotations are not readily available may be valued, pursuant to
guidelines established by the Board of Trustees, with reference to fixed income
securities whose prices are more readily obtainable.
Securities Transactions and Investment Income. Securities transactions are
recorded as of the trade date. Securities purchased or sold on a when-issued or
delayed-delivery basis may be settled a month or more after the trade date.
Realized gains and losses from securities sold are recorded on the identified
cost basis. Dividend income is recorded on the ex-dividend date. Interest income
is recorded on the accrual basis and includes the accretion of discounts and
amortization of premiums.
Dividends and Distributions to Shareholders. Dividends from net investment
income are declared and paid quarterly to shareholders of record by the NFJ
Equity Income, NFJ Diversified Low P/E, and Balanced Funds. Dividends from net
investment income are declared and paid annually to shareholders of record by
the NFJ Small Cap Value, Cadence Capital Appreciation, Cadence Mid Cap Growth,
Cadence Micro Cap Growth, Cadence Small Cap Growth, Columbus Circle Investors
Core Equity, Columbus Circle Investors Mid Cap Equity, Parametric Enhanced
Equity, Blairlogie Emerging Markets, and Blairlogie International Active Funds.
Net long-term capital gains earned by a Fund, if any, will be distributed no
less frequently than once each year. Foreign exchange gains or losses on
investments and the income generated from such investments, arising from
fluctuations of exchange rates of the non-dollar denominated investments
relative to the U.S. dollar, are reported to shareholders as income in
accordance with the provisions of the Internal Revenue Code.
Income and capital gain distributions are determined in accordance with income
tax regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for such items as
wash sales, foreign currency transactions, net operating losses and capital loss
carryforwards. Certain amounts have been reclassified between undistributed net
investment income and accumulated undistributed net realized gains in order to
more appropriately conform financial accounting and tax characterizations of
dividend distributions.
During the period ended December 31, 1996, the Cadence Capital Appreciation and
Cadence Mid Cap Growth Funds each incurred a redemption in kind, resulting in
realized gains of $2,666,079 and $4,329,586, respectively. A redemption in kind
occurs when a Fund pays a shareholder with portfolio securities in lieu of cash.
Multi-class Operations. The Trust is authorized to offer investors a choice of
two classes of shares, the Institutional Class and the Administrative Class.
Each class has equal rights as to assets and voting privileges, while each has
exclusive voting rights with respect to its distribution plan. The NFJ Equity
Income, NFJ Small
54
<PAGE>
Cap Value, Cadence Capital Appreciation, Cadence Mid Cap Growth, Cadence Micro
Cap Growth, Cadence Small Cap Growth, Columbus Circle Investors Core Equity,
Blairlogie Emerging Markets and Blairlogie International Active Funds had
commenced multi-class operations as of December 31, 1996.
Income and non-class specific expenses are allocated daily to each class of
shares based on the relative value of settled shares as of the beginning of each
day, adjusted for purchase orders received in Federal Funds prior to 12:00 p.m.,
Eastern time. Realized and unrealized capital gains and losses are allocated to
each class of shares based on relative net assets as of the beginning of each
day adjusted for the prior day's capital share activity.
Federal Income Taxes. Each Fund intends to qualify as a regulated investment
company and distribute all of its taxable income and net realized gains, if
applicable, to shareholders. Accordingly, no provision for Federal income taxes
has been made.
Foreign Taxes on Dividends. Dividend income in the statement of operations is
shown net of foreign taxes withheld on dividends from foreign securities.
Foreign taxes withheld were as follows: NFJ Equity Income Fund - $7,845; NFJ
Diversified Low P/E Fund - $6,226; NFJ Small Cap Value Fund - $418; Cadence
Capital Appreciation Fund - $12,546; Cadence Mid Cap Growth Fund - $774;
Columbus Circle Investors Mid Cap Equity Fund - $194; Parametric Enhanced Equity
Fund -$3,105; Blairlogie Emerging Markets Fund - $16,508; Blairlogie
International Active Fund - $64,876; and Balanced Fund - $939.
Equalization. Prior to July 1, 1996, all of the Funds, except the Balanced Fund,
followed the accounting practice known as equalization, by which a portion of
the proceeds from sales and costs of repurchases of Fund shares, equivalent on a
per share basis to the amount of distributable investment income on the date of
the transaction, was credited or charged to undistributed income. As a result,
undistributed investment income per share was unaffected by sales or redemptions
of Fund shares. As a result of adopting Statement of Position 93-2,
Determination, Disclosure and Financial Statement Presentation of Income,
Capital Gain and Return of Capital Distributions by Investment Companies, the
tax attributes of distributions prevail and the relevance of the calculation of
equalization was eliminated. Therefore, as of July 1, 1996, the Funds
discontinued using equalization. This change has no effect on the Fund's net
assets, net asset values per share, or their net increases (decreases) in net
assets resulting from operations.
Futures and Options. Certain Funds are authorized to enter into futures
contracts and options. The primary risks associated with the use of futures
contracts and options are imperfect correlation between the change in market
value of the securities held by a Fund and the prices of futures contracts and
options, the possibility of an illiquid market, and the inability of the
counterparty to meet the terms of the contract. Futures contracts and purchased
options are valued based upon their quoted daily settlement prices. The premium
received for a written option is recorded as an asset with an equal liability
which is marked-to-market based on the option's quoted daily settlement price.
Fluctuations in the value of such instruments are recorded as unrealized
appreciation (depreciation) until terminated, at which time realized gains and
losses are recognized.
Currencies with an aggregate market value of $393,636 have been segregated with
the custodian to cover margin requirements for the following open stock index
futures contracts at December 31, 1996 ($ in thousands):
Blairlogie International Active Fund
Unrealized
Type Contracts Depreciation
--------------------------------------------------------
Osaka 300 (3/97) 104 $ (121)
------------
Forward Currency Contracts. Certain Funds are authorized to enter into forward
foreign exchange contracts for the purpose of hedging against foreign exchange
risk arising from the Fund's investment or anticipated investment in securities
denominated in foreign currencies. The aggregate principal amounts of the
contracts for which delivery is anticipated are recorded in the Fund's account,
while such amounts are not recorded if the Fund intends to settle the contracts
prior to delivery. All commitments are marked-to-market daily at the applicable
translation rates and any resulting unrealized gains or losses are recorded in
the Fund's financial statements. The Fund records realized gains or losses at
the time the forward contract is extinguished by entry into a closing
transaction or by delivery of the currency. Risks may arise upon entering these
contracts from the potential inability of counterparties to meet the terms of
their contracts and from unanticipated movements in the value of a foreign
currency relative to the U.S. dollar. The following foreign forward currency
contracts were outstanding at December 31, 1996 (amounts in thousands):
55
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont.)
December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
Blairlogie Emerging Markets Fund
Principal
Amount
Covered Expiration Unrealized
Type by Contract Month Appreciation
------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sell Brazilian Real
Cruzeiro 14 1/97 $ 0
===========
<CAPTION>
Blairlogie International Active Fund
Principal
Amount Unrealized
Covered Expiration Appreciation
Type by Contract Month (Depreciation)
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sell British Pound 301 1/97 $ (4)
Buy German Mark 13,600 1/97 (19)
Sell German Mark 13,600 1/97 (50)
Buy Japanese Yen 640,000 1/97 (197)
Sell Japanese Yen 223,257 1/97 30
------------
$ (240)
============
</TABLE>
Estimates. The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
2. Fees, Expenses, and Related Party Transactions
Investment Advisory Fee. PIMCO Advisors L.P. ("PIMCO Advisors") serves as
investment advisor to the Trust, pursuant to an Investment Advisory Agreement.
PIMCO Advisors receives from the Trust a fee based on an annual percentage of
the average daily net assets of each Fund as follows: for the NFJ Equity Income,
NFJ Diversified Low P/E, Cadence Capital Appreciation, Cadence Mid Cap Growth,
Parametric Enhanced Equity, and Balanced Funds - .45%; for the Columbus Circle
Investors Core Equity Fund - .57%; for the NFJ Small Cap Value and Blairlogie
International Active Funds - .60%; for the Columbus Circle Investors Mid Cap
Equity Fund - .63%; for the Blairlogie Emerging Markets Fund - .85%; for the
Cadence Small Cap Growth Fund - 1.00%; and for the Cadence Micro Cap Growth Fund
- - 1.25%. Pursuant to the Portfolio Management Agreements, which became effective
November 15, 1994, PIMCO Advisors employs six of its sub-partnerships as
portfolio managers for the Funds. The advisory fees received by PIMCO Advisors
are paid to each of the portfolio managers, except for the Balanced Fund. For
the fixed income segment of the Balanced Fund, PIMCO Advisors pays .25% of the
average daily net assets to Pacific Investment Management Company ("PIMCO"). For
the common stock segment of the Balanced Fund, PIMCO Advisors pays .45% of the
average daily net assets to NFJ Investment Group and Cadence Capital Management.
Administration Fee. PIMCO provides administrative services to the Trust for
which it receives from the Trust an administrative fee at the annual rate of
.25% of the average daily net assets of each of the Funds other than the
Blairlogie Emerging Markets and Blairlogie International Active Funds, for which
the fee is at the annual rate of .50% of the average daily net assets of the
Fund.
Expenses. The Trust is responsible for the following expenses: (i) salaries and
other compensation of any of the Trust's executive officers and employees who
are not officers, directors, stockholders or employees of PIMCO Advisors, PIMCO,
or its subsidiaries or affiliates; (ii) taxes and governmental fees; (iii)
brokerage fees and commissions and other portfolio transaction expenses; (iv)
the cost of borrowing money, including interest expenses; (v) fees and expenses
of the Trustees who are not "interested persons" of the Advisor, PIMCO,
Portfolio Managers, or the Trust, and any counsel retained exclusively for their
benefit; (vi) extraordinary expenses, including costs of litigation and
indemnification expenses; (vii) expenses such as organizational expenses, which
are capitalized in accordance with generally accepted accounting principles; and
(viii) any expenses allocated or allocable to a specific class of shares, which
include service fees payable with respect to the Administrative Class shares and
may include certain other expenses as permitted by the Trust's Multiple Class
Plan adopted pursuant to Rule 18f-3 under the Investment Company Act of 1940 and
subject to review and approval by the Trustees.
Related Party Transactions. PIMCO Advisors Distribution Company ("PADCO"), an
indirect wholly-owned subsidiary of PIMCO Advisors, serves as the distributor of
the Trust's shares. Pursuant to a Distribution Agreement, all expenses relating
to the distribution of Trust shares will be paid by PIMCO Advisors, PIMCO or
PADCO out of past profits and resources which may include fees received by PIMCO
Advisors or the administrator.
Certain officers of PIMCO Advisors are also officers of the Trust.
56
<PAGE>
3. Purchases and Sales of Securities
Purchases and sales of securities (excluding short-term investments) for the six
months ended December 31, 1996 were as follows ($ in thousands):
<TABLE>
<CAPTION>
U.S. Government/Agency All Other
--------------------------------------------------------------------------------------
Purchases Sales Purchases Sales
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NFJ Equity Income Fund $ 9,272 $ 27,359
NFJ Diversified Low P/E Fund 20,333 14,177
NFJ Small Cap Value Fund 6,943 8,047
Cadence Capital Appreciation Fund 193,832 125,715
Cadence Mid Cap Growth Fund 99,769 130,275
Cadence Micro Cap Growth Fund 47,062 35,427
Cadence Small Cap Growth Fund 25,084 29,775
Columbus Circle Investors Core Equity Fund 25,937 33,678
Columbus Circle Investors Mid Cap Equity Fund 6,146 7,292
Parametric Enhanced Equity Fund 37,119 81,737
Blairlogie Emerging Markets Fund 32,226 46,975
Blairlogie International Active Fund 44,126 32,943
Balanced Fund $ 35,898 $ 33,272 48,805 63,742
</TABLE>
4. Transactions in Written Call and Put Options
Transactions in written call and put options were as follows ($ in thousands):
<TABLE>
<CAPTION>
Columbus Circle Investors
Core Equity Fund Balanced Fund
--------------------------------------------------------------------------
Premium Contracts Premium Contracts
--------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Balance at 06/30/96 $ 6 16 $ 3 8
Sales 102 391 48 70
Closing Buys (47) (175) 0 0
Expirations (24) (87) 0 0
Exercised (37) (145) 0 0
- ---------------------------------------------------------------------------------------------------------
Balance at 12/31/96 $ 0 0 $ 51 78
=========================================================================================================
</TABLE>
5. Shares of Beneficial Interest
The Trust may issue an unlimited number of shares of beneficial interest with a
$.0001 par value. Changes in shares of beneficial interest were as follows
(shares in thousands):
<TABLE>
<CAPTION>
NFJ NFJ NFJ
NFJ Equity Diversified NFJ Small Cap Cadence
Period Ended Equity Income Low Small Cap Value Capital
December 31, 1996 Income Admin. P/E Value Admin. Appreciation
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 510 57 811 64 34 3,986
Issued as reinvestment
of dividends 1,208 74 250 369 55 2,018
Shares redeemed (1,524) (63) (402) (203) (41) (2,590)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase 194 68 659 230 48 3,414
=================================================================================================================================
<CAPTION>
Cadence Cadence Cadence
Capital Cadence Mid Cap Cadence Micro Cap Cadence
Period Ended Appreciation Mid Cap Growth Micro Cap Growth Small Cap
December 31, 1996 Admin. (a) Growth Admin. Growth Admin. Growth
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 67 864 10 1,343 56 267
Issued as reinvestment
of dividends 8 2,482 15 572 7 1,056
Shares redeemed (2) (2,580) (4) (218) (26) (231)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase 73 766 21 1,697 37 1,092
=================================================================================================================================
</TABLE>
(a) From commencement of operations, July 31, 1996.
57
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont.)
December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
Columbus Columbus Columbus
Cadence Circle Circle Circle
Small Cap Investors Investors Investors Parametric Blairlogie
Period Ended Growth Core Core Equity Mid Cap Enhanced Emerging
December 31, 1996 Admin. Equity Admin. Equity Equity Markets
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 0 39 475 18 565 485
Issued as reinvestment
of dividends 1 21 137 20 1,245 0
Shares redeemed (4) (28) (599) (6) (3,604) (1,897)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (3) 32 13 32 (1,794) (1,412)
==================================================================================================================================
<CAPTION>
Blairlogie Blairlogie
Emerging Blairlogie International
Period Ended Markets International Active
December 31, 1996 Admin. Active Admin. Balanced
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 26 2,278 96 650
Issued as reinvestment
of dividends 0 296 22 1,072
Shares redeemed (43) (978) (107) (2,767)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) (17) 1,596 11 (1,045)
================================================================================================
</TABLE>
<TABLE>
<CAPTION>
NFJ NFJ NFJ
NFJ Equity Diversified NFJ Small Cap Cadence
Period Ended Equity Income Low Small Cap Value Capital
June 30, 1996 Income Admin. P/E Value Admin.(a) Appreciation
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 2,560 524 2,925 201 437 5,442
Issued as reinvestment
of dividends 514 29 207 192 27 947
Shares redeemed (3,957) (139) (53) (1,028) (152) (1,070)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (883) 414 3,079 (635) 312 5,319
====================================================================================================================================
<CAPTION>
Cadence Cadence Cadence
Cadence Mid Cap Cadence Micro Cap Cadence Small Cap
Period Ended Mid Cap Growth Micro Cap Growth Small Cap Growth
June 30, 1996 Growth Admin. Growth Admin. (b) Growth Admin.
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 3,438 14 1,333 40 238 22
Issued as reinvestment
of dividends 301 2 88 0 239 2
Shares redeemed (2,281) (10) (1,411) (9) (2,414) (45)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 1,458 6 10 31 (1,937) (21)
====================================================================================================================================
</TABLE>
(a) From commencement of operations, November 1, 1995.
(b) From commencement of operations, April 1, 1996.
58
<PAGE>
<TABLE>
<CAPTION>
Columbus Columbus Columbus
Circle Circle Circle Blairlogie
Investors Investors Investors Parametric Blairlogie Emerging
Period Ended Core Core Equity Mid Cap Enhanced Emerging Markets
June 30, 1996 Equity Admin. Equity Equity Markets Admin.
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 162 1,313 36 2,985 2,675 33
Issued as reinvestment
of dividends 5 52 6 210 14 0
Shares redeemed (9) (825) (118) (3,078) (2,853) (78)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 158 540 (76) 117 (164) (45)
====================================================================================================================================
<CAPTION>
Blairlogie
Blairlogie International
Period Ended International Active
June 30, 1996 Active Admin. Balanced
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Shares sold 1,178 428 821
Issued as reinvestment
of dividends 182 3 704
Shares redeemed (1,178) (39) (538)
- --------------------------------------------------------------------------------
Net increase 182 392 987
================================================================================
</TABLE>
6. Change in Portfolio Manager for the Balanced Fund
Effective August 1, 1996, NFJ Investment Group and Cadence Capital Management
replaced Parametric Portfolio Associates as managers of the common stock segment
of the Balanced Fund. There was no change to the advisory fee. PIMCO continues
to manage the fixed income segment of the Balanced Fund.
7. Federal Income Tax Matters
As of June 30, 1996, the Blairlogie Emerging Markets Fund had a capital loss
that was realized in the prior year of 11,876,066. This capital loss is
available to offset future realized capital gains through June 30, 2003. The
Fund will resume capital gain distributions in the future to the extent gains
are realized in excess of the available carryforwards.
The Cadence Micro Cap Growth Fund had a tax operating loss of 244,153 during the
period ended June 30, 1996 which resulted in a permanent difference between book
income and tax-basis income. This difference was reclassified from undistributed
net investment income (loss) to paid in capital on the statement of assets and
liabilities.
8. Reorganization
On September 17, 1996, the Board of Trustees approved the reorganization of some
of the funds of the PIMCO Advisors Funds ("PAF"), an affiliated management
investment company, into the Trust. The reorganization occurred on January 17,
1997. In conjunction with the reorganization, the name of the Trust was changed
to "PIMCO Funds: Multi-Manager Series." Certain PAF funds were acquired intact
and became new Funds of the Trust. Two Funds of the Trust, the NFJ Diversified
Low P/E and the Cadence Mid Cap Growth Funds, were combined with funds acquired
from PAF. The remaining Funds of the Trust were not combined with PAF funds, and
therefore were not directly affected by the reorganization. Their current
Adviser and Portfolio Managers continue to manage their respective Funds.
Also, as part of the reorganization, the NFJ Diversified Low P/E Fund and the
Blairlogie International Active Fund were renamed Value Fund and International
Developed Fund, respectively, to more accurately describe the investment style.
59
<PAGE>
SHAREHOLDER VOTE
Special meetings of shareholders were held on December 20, 1996, and January 8,
1997, to vote on the following resolutions:
1. Election of eight additional Trustees. The following Trustees were
recommended for election: E. Philip Cannon, Donald P. Carter, Gary A.
Childress, Gary L. Light, Robert A. Prindiville, Joel Segall, W. Bryant
Stooks and Gerald M. Thorne. The following Trustees continue to serve the
Trust: William D. Cvengros, Richard L. Nelson, Lyman W. Porter and Alan
Richards.
2. The Cadence Mid Cap Growth Fund will acquire the assets (subject to the
liabilities) of the Discovery Fund, a series of PIMCO Advisors Funds
("PAF"). The NFJ Diversified Low P/E Fund will acquire the assets (subject
to the liabilities) of the Value Fund, a series of PAF.
3. Approve Addendum to the Portfolio Management Agreement. Reallocate
investment advisory fees paid to PIMCO Advisors L.P. ("the Advisor")
between the Advisor and each of the portfolio managers.
4. Approve Second Amended and Restated Declaration of Trust. The Declaration
states that shareholder voting requirements will be provided for in the
provisions of the proposed Bylaws adopted by the Trustees, eliminate the
requirement of a shareholder vote with respect to consolidations or mergers
of the Trust, allows the Trustees to assign certain preferences and special
or relative rights and privileges (including conversion rights, if any) to
the classes of the Trust, eliminate the provision of "reasonable and fair"
for advisory and distribution contracts entered into with certain
interested parties of the Trust and retain the requirement that the
contracts remain subject to the requirements of the Investment Company Act
of 1940, and clarifies the procedures for determining whether parties are
entitled to indemnification by the Trust.
5. Approve the Administrative Class Distribution Plan. Under the terms of the
Plan, the Trust will reimburse brokers and other service organizations for
costs and expenses incurred in connection with the distribution and
marketing of the Administrative Class shares and/or the provision of
shareholder services to its customers that invest in the Funds.
Shareholders adopted all resolutions, except for Resolution 5 which was not
adopted by the shareholders of the Cadence Capital Appreciation Fund, Cadence
Small Cap Growth Fund and the Blairlogie Emerging Markets Fund.
The voting on each resolution is summarized below:
Resolution 1
- --------------------------------------------------------------------------------
For Withheld
- --------------------------------------------------------------------------------
E. Philip Cannon 57,405,747 129,451
Donald P. Carter 57,405,747 129,451
Gary A. Childress 57,405,747 129,451
Gary L. Light 57,405,747 129,451
Robert A. Prindiville 57,417,947 117,250
Joel Segall 57,010,964 524,233
W. Bryant Stooks 57,405,747 129,451
Gerald M. Thorne 57,405,747 129,451
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Resolution 2
- --------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NFJ Diversified Low P/E Fund 3,563,807 161 5,813 525
Cadence Mid Cap Growth Fund 6,125,657 4,053 570 23,439
Resolution 3
- --------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- --------------------------------------------------------------------------------
NFJ Equity Income Fund 4,324,360 14,756 15,001 0
NFJ Diversified Low P/E Fund 3,560,691 94 5,813 3,708
NFJ Small Cap Value Fund 1,326,551 0 5,235 0
Cadence Capital Appreciation Fund 14,313,578 908,626 109,950 0
Cadence Mid Cap Growth Fund 6,149,096 4,053 570 23,439
Cadence Micro Cap Growth Fund 3,536,653 9,159 12,186 0
Cadence Small Cap Growth Fund 1,167,224 3,790 0 0
Columbus Circle Investors Core
Equity Fund 2,798,640 0 2,673 0
Columbus Circle Investors Mid Cap
Equity Fund 478,678 0 633 0
Parametric Enhanced Equity Fund 3,839,764 0 15,960 0
Blairlogie Emerging Markets Fund 4,238,889 23,349 36,439 0
Blairlogie International Active Fund 4,793,969 4,033 4,715 0
Balanced Fund (NFJ Addendum) 4,758,053 0 12,693 0
Balanced Fund (Cadence Addendum) 4,755,416 2,637 12,693 0
Resolution 4
- --------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- ---------------------------------------------------------------------------------
NFJ Equity Income Fund 4,227,369 21,829 15,700 89,218
NFJ Diversified Low P/E Fund 3,559,510 94 5,813 4,889
NFJ Small Cap Value Fund 1,326,201 0 5,235 350
Cadence Capital Appreciation Fund 10,756,595 1,418,188 118,236 3,025,336
Cadence Mid Cap Growth Fund 6,124,869 4,841 570 0
Cadence Micro Cap Growth Fund 2,665,179 11,236 12,149 863,922
Cadence Small Cap Growth Fund 1,167,224 3,790 0 0
Columbus Circle Investors Core
Equity Fund 2,798,640 0 2,672 0
Columbus Circle Investors Mid Cap
Equity Fund 478,678 0 633 0
Parametric Enhanced Equity Fund 3,839,764 0 15,960 0
Blairlogie Emerging Markets Fund 3,265,118 26,693 33,658 1,378,527
Blairlogie International Active Fund 4,398,987 5,859 4,150 393,722
Balanced Fund 4,755,416 2,637 12,693 0
Resolution 5
- ---------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- ---------------------------------------------------------------------------------
NFJ Equity Income Fund 418,547 0 0 10,270
NFJ Small Cap Value Fund 306,741 0 0 1,255
Cadence Capital Appreciation Fund 886 0 0 4,667
Cadence Mid Cap Growth Fund 48,900 0 0 8,939
Cadence Micro Cap Growth Fund 51,948 0 0 0
Cadence Small Cap Growth Fund 0 0 0 5,313
Columbus Circle Investors Core
Equity Fund 2,203,401 0 0 0
Blairlogie Emerging Markets Fund 5,184 0 0 19,689
Blairlogie International Active Fund 286,674 0 0 183,042
</TABLE>
60
<PAGE>
Trustees and Officers
William D. Cvengros, Chairman, President & Trustee
Richard L. Nelson, Trustee
Lyman W. Porter, Trustee
Alan Richards, Trustee
Garlin G. Flynn, Secretary
John P. Hardaway, Treasurer
Investment Advisor
PIMCO Advisors L.P.
840 Newport Center Drive, Suite 360
Newport Beach, California 92660
Administrator
Pacific Investment Management Company
840 Newport Center Drive, Suite 360
Newport Beach, California 92660
Distributor
PIMCO Advisors Distribution Company
2187 Atlantic Street
Stamford, Connecticut 06902
Transfer Agent and Custodian
Investors Fiduciary Trust Company
127 West 10th Street
Kansas City, Missouri 64105
Counsel
Dechert Price & Rhoads
1500 K Street N.W.
Washington, D.C. 20005
Independent Accountants
Price Waterhouse LLP
1055 Broadway
Kansas City, Missouri 64105
<PAGE>
P I M C O
840 NEWPORT CENTER DRIVE, SUITE 360
NEWPORT BEACH, CA 92660
800-927-4648
This report is submitted for the general information of the
shareholders of the PIMCO Funds: Equity Advisors Series. It
is not authorized for distribution to prospective investors
unless accompanied or preceded by an effective Prospectus for
the PIMCO Funds: Equity Advisors Series, which contains
information covering its investment policies as well as other
pertinent information.
