<PAGE>
Letter To Shareholders January 20, 1998
- --------------------------------------------------------------------------------
ECONOMIC & FINANCIAL
MARKETS OUTLOOK
A Cold Wind Blows From Asia
While always important to the world economy, Asia has now taken center stage.
Beginning with a run on the Thai currency (Baht) in early June and spreading to
other Southeast Asian currencies and stock markets throughout the summer, the
"Asian Flu", as it has been dubbed, engulfed the rest of the region and then the
entire world, culminating in the worldwide stock market declines of late
October. While the markets in the U.S. and Europe quickly recovered, conditions
in Asia continued to deteriorate. Local currencies and stock markets continued
falling, eventually requiring the banking systems of Thailand, Indonesia and
Korea to be rescued by the International Monetary Fund (IMF), the World Bank and
the developed nations.
It does not appear that the region is yet out of the woods. The financial crisis
in South Korea seems to worsen daily, while Japan, the largest economy in the
region, still has not taken the steps necessary to pull its economy out of a
seven year slump. Meanwhile, the aftershocks are still being felt outside of the
region as investors reassess the risks of exotic investments in volatile foreign
markets and flee to the relative safety of the U.S. dollar and U.S. financial
markets.
The questions we find ourselves asking at this point are: What does all this
mean to the U.S. economy and corporate profits over the intermediate term, and
what are the implications for U.S. financial markets beyond the knee-jerk
reactions of the sort experienced in late October? Our conclusion is that, while
the round-the-clock selling in global stock markets during October was almost
silly, and while the long-term prospects for Asia will probably improve once
this crisis has passed, the potential negative implications for the U.S. equity
market are likely to prove more severe than currently believed. Asia, with two
thirds of the world's population and close to 40% of Gross World Product, is too
big and too important for such a large-scale crisis to be only a regional event.
As home to many of the world's fastest growing economies, the region has an
impact even more pronounced than its size would indicate.
What Happened?
At its core, the crisis in Asia is one of liquidity and confidence--first too
much and then too little. For years, countries in the region thrived by fixing
their exchange rates to the U.S. dollar and pursuing "Japan, Inc." styles of
economic development. This meant that governments were free to channel capital
into areas of national priority, while in international capital markets the
threat of currency devaluations had been removed. The economies of the region
thrived, vaulting themselves to economic powerhouses in three short decades.
Unfortunately, the Asian "economic miracle" had its dark side in a lack of
financial sector accountability, a potential to create excess capital and a lack
of marketplace disciplines. Worst of all, massive borrowings in the region were
denominated in outside currencies, principally U.S. dollars and Japanese yen.
The result was that, though seemingly formidable from the outside, the Asian
economic model had serious structural weaknesses.
So what turned inherent structural weaknesses into crisis? The stage was set in
the mid 1990's when China drastically devalued its currency, thereby giving
itself a significant competitive edge over its regional rivals. Soon, the
combination of strong domestic demand and growing export competition from China
led to ballooning trade deficits, declining foreign currency reserves and
growing concern among international lenders. Once confidence had been shaken, it
was the global currency speculators that provided the catalyst for the current
crisis, as they began to "bet against" the fixed exchange rate regimes. The
fixed exchange rate system finally collapsed in the summer of 1997 and the
judgment of the market was swift and brutal. Only China and Hong Kong, both with
large foreign currency reserves and U.S. dollar trade surpluses, were spared.
Of greatest concern to U.S. investors, of course, is the possibility that the
"Asian Flu" will reach across the Pacific to our own shores. Most troubling by
far is the outlook for corporate profits. Already lacking pricing power, many of
the most vibrant segments of the U.S. economy will now find themselves facing
competitors from Asia who, because of currency devaluations, suddenly have a
25%-50% cost advantage. In addition, many U.S. companies had pinned very high
hopes on their large investments in Asia, expecting them to provide growth
opportunities not available in a mature U.S. economy. The Asian crisis could
prove to be a double-edged sword, pressuring profit
1
<PAGE>
margins here in the U.S. and limiting the opportunities for growth in what had
been the most dynamic geographic region of the world.
Short/Intermediate Term
Fixed-Income Fund
During fiscal 1997, the yield curve changed shape as yields on short maturity
Treasury issues rose .15% - .25%, while five year rates were unchanged and long
maturity issues declined in yield by over .30%. This environment produced the
highest total rates of returns (coupon plus price appreciation) for 30 year
maturities at 9.35%. Total returns for the Merrill Lynch three and five year
Treasury indicies were 5.85% and 5.79%, respectively.
Your Fund's total return was 6.03% for the fiscal year, comparing favorably to
three to five year Treasury investments. Mortgage-backed bonds continued to
furnish strong returns in fiscal 1997, as these investments outperformed a
variety of similar duration alternatives. Our managers reduced weightings
in this area approximately 10 percentage points during the year, and we ended
the fiscal year with a little over one third of the portfolio invested in this
high achieving sector. We believe these issues will be attractive holdings in
1998, but their relative returns will not be as attractive as during the last
several years.
Corporate holdings were increased during the year. Issues rated A and Baa were
increased from approximately 19% to 26% over the year as yield premiums widened
during the latter half of the year providing more opportunities to capture
attractive yield premiums.
The 30 day yield on the Fund at fiscal year-end was 5.84%. The yield was
attractive relative to three month Treasury bills at 5.19% and three year
maturity Treasury issues at 5.78%.
Equity Fund
Calendar 1997 was another outstanding year for the Equity Fund as it generated a
total return of 27.3%. This brings the three year a average annual total return
on the Fund to almost 25% per year. In relative terms, while lagging behind the
Standard & Poor's (S&P) 500 Index, this 27.3% outpaced most market measures
including the Dow Jones Industrial Average return of 24.9% and the Russell 2000
small company index of 22.2%. Results also compare favorably to Lipper
mutual fund benchmarks, beating the average return for growth equity funds of
25.3% and the general equity funds average of 24.4%. For the fiscal year, the
Fund's total return was 24.0% versus 28.5% for the S&P 500 Index.
The best performing sectors in the Fund were health care, communications
services and financials, as increasing price volatility drove investors to the
relative safety of the first two sectors, while falling long-term interest rates
increased the attractiveness of many financial services companies which
benefit from such an environment. On the other side, technology companies,
buffeted by developments in Asia, gave back strong gains in the first half of
the year, while commodity companies also suffered from fears of a global
slowdown.
As we begin 1998, it is our belief that the impact on corporate earnings of the
economic and financial meltdown in Asia are not fully appreciated in the market,
likely leading to a continuation of the volatility that has characterized the
equity market over the last six months. On the other hand, on a longer term
basis, and in light of virtually non-existent inflation and correspondingly low
interest rest rates, a more stable economic environment by the end of the year
would likely present new opportunities. In the interim, we have focused our
attention on growth-oriented capital goods companies and health care businesses.
While beginning to rebuild representation in selected technology and
consumer goods companies that have suffered from heavy non-U.S. exposure, we
also continue to emphasize medium-sized companies where valuations are more
compelling than in the large capitalization area.
Summary
While very low rates of inflation and decelerating growth of corporate profits
constitutes a very attractive environment for fixed-income securities, it seems
likely that there will be some disappointments within the equity area and, with
statistical valuations at historic high levels, we are inclined to be only
cautiously optimistic as we enter 1998. 1995 through 1997 has been the only
period in modern history when the S&P 500 Index has appreciated over 20% in
three consecutive years. In the current environment, it seems that somewhat
lower expectations would be prudent, but we have always felt that investment
horizons should be truly long-term and that predictions for shorter periods
often tend to be more humbling than prescient.
Sincerely yours,
Malcolm D. Clarke, Jr.
President
<PAGE>
Comparison of the Change in Value of a $10,000 Investment in the Brundage, Story
and Rose Short/Intermediate Term Fixed-Income Fund and the Merrill Lynch 3-Year
Treasury Index
Brundage, Story and Rose
Short/Intermediate Term Fixed-Income Fund
Average Annual Total Returns
1 Year 5 Year Since Inception*
6.03% 6.57% 7.39%
Past performance is not predictive of future performance
<TABLE>
<CAPTION>
Brundage, Story
and Rose
Short/Intermediate Merrill Lynch
Term 3 Year
Fixed-Income Fund Treasury Index
<S> <C> <C>
1/91 10000 10000
3/91 10158 10200
6/91 10357 10384
9/91 10864 10845
12/91 11322 11353
3/92 11240 11223
6/92 11685 11654
9/92 12130 12163
12/92 12054 12105
3/93 12488 12482
6/93 12747 12663
9/93 13007 12878
12/93 13063 12931
3/94 12848 12728
6/94 12751 12661
9/94 12828 12759
12/94 12766 12734
3/95 13366 13271
6/95 14036 13837
9/95 14263 14051
12/95 14749 14496
3/96 14647 14423
6/96 14734 14505
9/96 14999 14743
12/96 15352 15060
3/97 15323 15071
6/97 15764 15452
9/97 16178 15833
11/97 16366 16000
</TABLE>
*The public offering of shares commenced on January 2, 1991.
Comparison of the Change in Value of a $10,000 Investment in the Brundage, Story
and Rose Equity Fund and the Standard & Poor's 500 Index
Brundage, Story and Rose
Equity Fund
Average Annual Total Returns
1 Year 5 Year Since Inception*
23.98% 15.47% 14.82%
Past performance is not predictive of future performance
<TABLE>
<CAPTION>
Brundage, Story
and Rose Standard & Poor's
Equity Fund 500 Index
<S> <C> <C>
1/91 10000 10000
3/91 11100 11453
6/91 10736 11427
9/91 11280 12038
12/91 12273 13047
3/92 11890 12717
6/92 11802 12958
9/92 12371 13367
12/92 12579 14039
3/93 12875 14651
6/93 12907 14721
9/93 13385 15101
12/93 13870 15452
3/94 13148 14866
6/94 13156 14928
9/94 14103 15657
12/94 13795 15654
3/95 14791 17178
6/95 15543 18818
9/95 16875 20314
12/95 17551 21537
3/96 17916 22693
6/96 18920 23711
9/96 19188 24444
12/96 20934 26482
3/97 20587 27192
6/97 24236 31939
9/97 26143 34331
12/97 25983 34721
</TABLE>
*The public offering of shares commenced on January 2, 1991. 3
<PAGE>
<TABLE>
<CAPTION>
BRUNDAGE, STORY AND ROSE INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES
November 30, 1997
=============================================================================================================================
Short/
Intermediate
Term
Fixed-Income Equity
Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments in securities:
At amortized cost (original cost $35,153,093 and $23,270,638, respectively)........ $ 35,143,353 $ 23,270,638
============= ==============
At market value (Note 2)........................................................... $ 35,613,937 $ 33,881,762
Investments in repurchase agreements (Note 2)........................................ 744,000 1,487,000
Cash................................................................................. 760 583
Receivable for capital shares sold................................................... 11,297 33,895
Interest and principal paydowns receivable........................................... 384,334 630
Dividends receivable................................................................. -- 39,323
Other assets......................................................................... 1,222 1,163
------------- --------------
TOTAL ASSETS................................................................. 36,755,550 35,444,356
------------- --------------
LIABILITIES
Payable for capital shares redeemed.................................................. 42,079 61,050
Dividends payable.................................................................... 31,781 --
Payable to affiliates (Note 4)....................................................... 13,773 28,214
Other accrued expenses and liabilities............................................... 15,100 12,079
------------- --------------
TOTAL LIABILITIES............................................................ 102,733 101,343
------------- --------------
NET ASSETS........................................................................... $ 36,652,817 $ 35,343,013
============= ==============
Net assets consist of:
Paid-in capital...................................................................... $ 36,562,158 $ 21,183,303
Undistributed net investment income.................................................. -- 13,368
Accumulated net realized gains (losses) from security transactions................... (379,925) 3,535,218
Net unrealized appreciation on investments........................................... 470,584 10,611,124
------------- --------------
Net assets........................................................................... $ 36,652,817 $ 35,343,013
============= ==============
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) (Note 5)................................................. 3,428,580 1,821,584
============= ==============
Net asset value, offering price and redemption price per share (Note 2).............. $ 10.69 $ 19.40
============= ==============
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
BRUNDAGE, STORY AND ROSE INVESTMENT TRUST
STATEMENTS OF OPERATIONS
For the Year Ended November 30, 1997
======================================================================================================================
Short/
Intermediate
Term
Fixed-Income Equity
Fund Fund
- ----------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
<S> <C> <C>
Interest..................................................................... $ 2,187,972 $ 56,243
Dividends.................................................................... -- 424,724
------------- -------------
TOTAL INVESTMENT INCOME................................................... 2,187,972 480,967
------------- -------------
EXPENSES
Investment advisory fees (Note 4)............................................ 167,570 204,053
Administrative services fees (Note 4)........................................ 66,812 62,621
Accounting services fees (Note 4)............................................ 36,000 32,400
Professional fees............................................................ 17,902 17,902
Transfer agent and shareholder service fees (Note 4)......................... 14,400 14,400
Trustees' fees and expenses.................................................. 13,188 13,188
Registration fees............................................................ 10,480 10,380
Insurance expense............................................................ 8,716 7,374
Custodian fees............................................................... 3,911 4,062
Pricing expense.............................................................. 6,422 1,382
Postage and supplies......................................................... 5,665 1,326
Reports to shareholders...................................................... 3,268 3,597
Distribution expenses (Note 4)............................................... 1,687 1,521
Other expenses............................................................... 2,070 --
------------- -------------
TOTAL EXPENSES............................................................ 358,091 374,206
Fees waived by the Adviser (Note 4).......................................... (140,249) --
------------- -------------
NET EXPENSES.............................................................. 217,842 374,206
------------- -------------
NET INVESTMENT INCOME.......................................................... 1,970,130 106,761
------------- -------------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) from security transactions....................... (30,709) 3,535,218
Net change in unrealized appreciation/depreciation on investments............ 33,026 3,111,825
------------- -------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS............................... 2,317 6,647,043
------------- -------------
NET INCREASE IN NET ASSETS FROM OPERATIONS..................................... $ 1,972,447 $ 6,753,804
============= =============
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
BRUNDAGE, STORY AND ROSE INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended November 30, 1997 and 1996
<TABLE>
<CAPTION>
=============================================================================================================================
Short/Intermediate Term
Fixed-Income Fund Equity Fund
-----------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
November 30, November 30, November 30, November 30,
1997 1996 1997 1996
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income....................................... $ 1,970,130 $ 1,925,771 $ 106,761 $ 105,845
Net realized gains (losses) from security transactions...... (30,709) 164,007 3,535,218 2,298,821
Net change in unrealized appreciation/depreciation
on investments............................................ 33,026 (248,560) 3,111,825 2,561,218
----------- ----------- ----------- -----------
Net increase in net assets from operations.................... 1,972,447 1,841,218 6,753,804 4,965,884
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income.................................. (1,970,130) (1,925,771) (106,087) (118,157)
From net realized gains from security transactions.......... -- -- (2,298,821) (1,134,441)
----------- ----------- ----------- -----------
Decrease in net assets from distributions to
shareholders................................................ (1,970,130) (1,925,771) (2,404,908) (1,252,598)
----------- ----------- ----------- -----------
FROM CAPITAL SHARE
TRANSACTIONS (Note 5):
Proceeds from shares sold................................... 6,910,347 4,540,639 3,894,667 2,369,871
Net asset value of shares issued in reinvestment of
distributions to shareholders............................. 1,580,414 1,615,646 2,352,415 1,235,320
Payments for shares redeemed................................ (5,216,812) (7,966,690) (2,793,087) (3,968,907)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
from capital share transactions............................. 3,273,949 (1,810,405) 3,453,995 (363,716)
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS......................... 3,276,266 (1,894,958) 7,802,891 3,349,570
NET ASSETS:
Beginning of year........................................... 33,376,551 35,271,509 27,540,122 24,190,552
----------- ----------- ----------- -----------
End of year................................................. $36,652,817 $33,376,551 $35,343,013 $27,540,122
=========== =========== =========== ===========
UNDISTRIBUTED NET INVESTMENT INCOME........................... $ -- $ -- $ 13,368 $ 12,694
=========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
BRUNDAGE, STORY AND ROSE INVESTMENT TRUST
SHORT/INTERMEDIATE TERM FIXED-INCOME FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
=================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Year
- -----------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
Nov. 30, Nov. 30, Nov. 30, Nov. 30, Nov. 30,
1997 1996 1995 1994 1993
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of year................. $ 10.69 $ 10.73 $ 9.94 $ 10.77 $ 10.49
------- ------- ------- ------- -------
Income from investment operations:
Net investment income.............................. 0.62 0.62 0.64 0.59 0.64
Net realized and unrealized
gains (losses) on investments.................... -- (0.04) 0.79 (0.79) 0.28
------- ------- ------- ------- -------
Total from investment operations..................... 0.62 0.58 1.43 (0.20) 0.92
------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income............... (0.62) (0.62) (0.64) (0.59) (0.64)
Distributions from net realized gains.............. -- -- -- (0.04) --
------- ------- ------- ------- -------
Total distributions.................................. (0.62) (0.62) (0.64) (0.63) (0.64)
------- ------- ------- ------- -------
Net asset value at end of year....................... $ 10.69 $ 10.69 $ 10.73 $ 9.94 $ 10.77
======= ======= ======= ======= =======
Total return......................................... 6.03% 5.65% 14.84% (1.98%) 9.00%
======= ======= ======= ======= =======
Net assets at end of year (000's).................... $36,653 $33,377 $35,272 $35,390 $43,272
======= ======= ======= ======= =======
Ratio of expenses to average net assets/(A)/......... 0.65% 0.65% 0.60% 0.50% 0.50%
Ratio of net investment income to average net assets. 5.88% 5.90% 6.21% 5.67% 5.95%
Portfolio turnover rate.............................. 46% 40% 39% 57% 29%
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
/(A)/ Absent fee waivers and/or expense reimbursements by the Adviser, the
ratios of expenses to average net assets would have been 1.07%, 1.09%,
1.09%, 1.06% and 1.11% and for the years ended November 30, 1997, 1996,
1995, 1994 and 1993, respectively (Note 4).
See accompanying notes to financial statements. 7
<PAGE>
BRUNDAGE, STORY AND ROSE INVESTMENT TRUST
EQUITY FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
====================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Year
- --------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
Nov. 30, Nov. 30, Nov. 30, Nov. 30, Nov. 30,
1997 1996 1995 1994 1993
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of year................. $ 17.18 $ 14.91 $ 12.43 $ 12.70 $ 12.26
------- ------- ------- ------- -------
Income from investment operations:
Net investment income.............................. 0.06 0.06 0.07 0.06 0.09
Net realized and unrealized
gains on investments............................. 3.65 2.97 3.02 0.11 0.76
------- ------- ------- ------- -------
Total from investment operations..................... 3.71 3.03 3.09 0.17 0.85
------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income............... (0.06) (0.07) (0.06) (0.06) (0.10)
Distributions from net realized gains.............. (1.43) (0.69) (0.55) (0.38) (0.31)
------- ------- ------- ------- -------
Total distributions.................................. (1.49) (0.76) (0.61) (0.44) (0.41)
------- ------- ------- ------- -------
Net asset value at end of year....................... $ 19.40 $ 17.18 $ 14.91 $ 12.43 $ 12.70
======= ======= ======= ======= =======
Total return......................................... 23.98% 21.27% 26.08% 1.35% 6.83%
======= ======= ======= ======= =======
Net assets at end of year (000's).................... $35,343 $27,540 $24,191 $18,821 $19,150
======= ======= ======= ======= =======
Ratio of expenses to average net assets/(A)/......... 1.19% 1.30% 1.45% 1.50% 1.50%
Ratio of net investment income to average net assets. 0.34% 0.42% 0.52% 0.51% 0.74%
Portfolio turnover rate.............................. 49% 44% 42% 44% 45%
Average commission rate per share/(B)/............... $0.0499 $0.0490 -- -- --
</TABLE>
/(A)/ Absent fee waivers by the Adviser, the ratio of expenses to average net
assets would have been 1.58% and for the year ended November 30, 1993.
/(B)/ Beginning with the year ended November 30, 1996, the Fund is required to
disclose its average commission rate per share for security trades on
which commissions are charged.
See accompanying notes to financial statements.
8
<PAGE>
BRUNDAGE, STORY AND ROSE INVESTMENT TRUST
SHORT/INTERMEDIATE TERM FIXED-INCOME FUND
PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 1997
<TABLE>
<CAPTION>
====================================================================================================================================
Par Market
Value INVESTMENT SECURITIES -- 97.2% Rate Maturity Value
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
U.S. TREASURY OBLIGATIONS -- 25.6%
$ 1,400,000 U.S. Treasury Notes................................................ 6.625% 7/31/01 $ 1,433,250
1,300,000 U.S. Treasury Notes................................................ 5.875 11/30/01 1,299,187
1,100,000 U.S. Treasury Notes................................................ 6.625 3/31/02 1,129,562
1,200,000 U.S. Treasury Notes................................................ 5.750 8/15/03 1,192,126
1,000,000 U.S. Treasury Notes................................................ 7.250 5/15/04 1,071,875
1,000,000 U.S. Treasury Notes................................................ 6.500 8/15/05 1,034,688
1,000,000 U.S. Treasury Notes................................................ 6.875 5/15/06 1,061,563
600,000 U.S. Treasury Notes................................................ 7.000 7/15/06 642,563
500,000 U.S. Treasury Notes................................................ 6.500 10/15/06 519,219
- ------------- ------------
$ 9,100,000 TOTAL U.S. TREASURY OBLIGATIONS (Cost $9,212,734).................. $ 9,384,033
- ------------- ------------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
SECURITIES -- 27.8%
$ 206,477 Federal Home Loan Mortgage Corp. GOLD #N-90875..................... 7.500% 2/01/99 $ 209,331
7,614 Government National Mortgage Assoc. #114468........................ 9.500 7/15/99 7,760
517,251 Federal Home Loan Mortgage Corp. GOLD #G-50274..................... 7.500 6/01/00 524,321
10,592 Federal Home Loan Mortgage Corp. GNOME #200068..................... 8.000 3/01/02 10,786
41,517 Federal National Mortgage Assoc. DWARF #51935...................... 8.000 4/01/02 42,444
1,000,000 Federal National Mortgage Assoc. REMIC #93-52E..................... 6.000 4/25/05 996,780
57,431 Federal Home Loan Mortgage Corp. #140094........................... 7.500 5/01/05 58,295
500,000 Federal Home Loan Mortgage Corp. REMIC #1404-D..................... 6.800 1/15/06 505,248
76,290 Federal National Mortgage Assoc. DWARF #50480...................... 8.000 9/01/06 78,855
700,000 Federal National Mortgage Assoc. REMIC #92-24H..................... 7.500 11/25/06 715,619
660,030 Government National Mortgage Assoc. #362109........................ 9.000 9/15/08 693,897
1,500,000 Federal Home Loan Mortgage Corp. REMIC #1523-PE.................... 6.000 10/15/15 1,496,535
1,000,000 Federal National Mortgage Assoc. REMIC #93-20PE.................... 5.900 5/25/16 995,090
1,000,000 Federal Home Loan Mortgage Corp. REMIC #1522-C..................... 6.000 8/15/16 994,250
1,000,000 Federal National Mortgage Assoc. REMIC #94-29PE.................... 6.000 5/25/18 993,120
15,946 Government National Mortgage Assoc. #285639........................ 9.000 2/15/20 17,215
1,000,000 Federal Home Loan Mortgage Corp. REMIC #1699-C..................... 6.200 2/15/24 998,740
833,017 Federal National Mortgage Assoc. #250322........................... 7.500 7/01/25 849,836
- ------------- ------------
$ 10,126,165 TOTAL U.S. GOVERNMENT AGENCY
- ------------- MORTGAGE-BACKED SECURITIES (Cost $10,098,982)..................... $ 10,188,122
------------
OTHER MORTGAGE-BACKED SECURITIES -- 6.7%
$ 467,491 Advanta Home Equity Loan Trust #92-1A.............................. 7.875% 9/25/08 $ 479,669
1,000,000 CMC Securities Corp. III #94-B..................................... 6.000 2/25/09 992,010
1,000,000 Bear Stearns Mortgage Securities, Inc. #96-3-A2.................... 7.240 6/25/27 1,000,620
- ------------- ------------
$ 2,467,491 TOTAL OTHER MORTGAGE-BACKED SECURITIES
- ------------- (Cost $2,457,809)................................................. $ 2,472,299
------------
</TABLE>
9
<PAGE>
SHORT/INTERMEDIATE TERM FIXED-INCOME FUND (continued)
<TABLE>
<CAPTION>
======================================================================================================================
Par Market
Value INVESTMENT SECURITIES -- 97.2% Rate Maturity Value
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSET-BACKED SECURITIES -- 11.5%
$ 100,512 Nissan Auto Receivables Trust #1994-A......................... 6.450% 9/15/99 $ 100,548
1,000,000 Circuit City Credit Card Trust #1994-2-A...................... 8.000 11/15/99 1,033,190
1,000,000 Banc One Credit Card Trust #1994-C-A.......................... 7.800 12/15/00 1,016,400
1,000,000 J.C. Penney Credit Card Trust #B-A............................ 8.950 10/15/01 1,048,934
1,000,000 First Bank Corporate Card Trust #1997-1-A..................... 6.400 2/15/03 1,005,540
- ------------- ------------
$ 4,100,512 TOTAL ASSET-BACKED SECURITIES (Cost $4,163,189)............... $ 4,204,612
- ------------- ------------
CORPORATE BONDS -- 25.6%
$ 100,000 Champion International Corp................................... 9.800% 2/01/98 $ 100,593
1,000,000 Lehman Brothers, Inc.......................................... 6.125 2/01/01 989,790
1,000,000 Ford Motor Credit Co. Medium Term Notes....................... 5.900 2/23/01 989,605
1,000,000 General Motors Acceptance Corp. Global Bond................... 6.750 2/07/02 1,010,273
1,000,000 Quebec Province............................................... 8.800 4/15/03 1,101,820
1,000,000 Sears Roebuck Acceptance Corp. Medium Term Notes.............. 6.760 6/25/03 1,012,800
1,000,000 Salomon Smith Barney Holdings, Inc............................ 6.625 11/15/03 996,740
1,000,000 American Home Products Corp................................... 7.900 2/15/05 1,075,792
1,000,000 U.S. West Capital Funding, Inc................................ 7.300 1/15/07 1,025,497
1,000,000 Bank One Corp................................................. 7.600 5/01/07 1,061,961
- ------------- ------------
$ 9,100,000 TOTAL CORPORATE BONDS (Cost $9,210,639)....................... $ 9,364,871
- ------------- ------------
$ 34,894,168 TOTAL INVESTMENTS (Cost $35,143,353).......................... $ 35,613,937
============= ============
</TABLE>
<TABLE>
<CAPTION>
======================================================================================================================
Face Market
Amount REPURCHASE AGREEMENTS(1) -- 2.0% Value
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 744,000 Fifth Third Bank, 5.08%, dated 11/28/97, due 12/01/97, repurchase proceeds $744,315... $ 744,000
- ------------- ------------
$ 744,000 TOTAL REPURCHASE AGREEMENTS........................................................... $ 744,000
============= ------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE -- 99.2%......................... $ 36,357,937
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.8%......................................... 294,880
------------
NET ASSETS -- 100.0%.................................................................. $ 36,652,817
============
</TABLE>
(1)Repurchase agreements are fully collateralized by U.S. Government
obligations.
DWARF - A 15-year mortgage pool issued by FNMA.
GNOME - A 15-year mortgage pool issued by FHLMC.
REMIC - Real Estate Mortgage Investment Conduit.
GOLD - A 30-year mortgage pool issued by FHLMC with a shorter coupon payment
delay period.
See accompanying notes to financial statements.
10
<PAGE>
<TABLE>
<CAPTION>
BRUNDAGE, STORY AND ROSE INVESTMENT TRUST
EQUITY FUND
PORTFOLIO OF INVESTMENTS
November 30, 1997
================================================================================
Market
COMMON STOCK -- 95.9% Shares Value
- --------------------------------------------------------------------------------
CAPITAL GOODS -- 16.5%
<S> <C> <C>
AlliedSignal, Inc............................. 16,000 $ 594,000
Avery Dennison Corp........................... 27,200 1,139,000
The Boeing Co................................. 16,000 850,000
Illinois Tool Works, Inc...................... 9,400 515,237
Molex, Inc. - Class A......................... 29,765 1,034,334
Thermo Electron Corp.*........................ 35,700 1,314,206
USA Waste Services, Inc.*..................... 12,000 396,750
-------------
$ 5,843,527
-------------
TECHNOLOGY -- 13.1%
Adobe Systems, Inc............................ 10,200 $ 428,400
Applied Materials, Inc.*...................... 8,500 280,500
Cabletron Systems, Inc.*...................... 18,500 425,500
Computer Sciences Corp.*...................... 12,000 950,250
First Data Corp............................... 7,500 212,344
Hewlett-Packard Co............................ 7,100 433,544
Motorola, Inc................................. 13,500 848,813
QUALCOMM, Inc.*............................... 7,000 474,250
Sequent Computer Systems, Inc.*............... 24,000 558,000
Siebel Systems, Inc.*......................... 34 1,415
-------------
$ 4,613,016
-------------
FINANCIALS -- 12.5%
American Express Co........................... 12,500 $ 985,938
American International Group, Inc............. 7,525 758,614
Chubb Corp.................................... 11,900 844,156
Fannie Mae.................................... 24,700 1,304,469
J.P. Morgan & Company, Inc.................... 4,500 513,844
-------------
$ 4,407,021
-------------
HEALTH CARE -- 12.1%
Abbott Laboratories........................... 15,000 $ 975,000
American Home Products Corp................... 10,700 747,663
MedPartners, Inc.*............................ 14,500 358,875
Merck & Co., Inc.............................. 5,000 472,812
Schering-Plough Corp.......................... 17,300 1,084,494
SmithKline Beecham PLC - ADR.................. 13,000 645,125
-------------
$ 4,283,969
-------------
BASIC MATERIALS -- 8.6%
BetzDearborn, Inc............................. 10,900 $ 663,537
Ecolab, Inc................................... 23,100 1,178,100
Monsanto Co................................... 10,000 436,875
Sonoco Products Co............................ 10,200 334,688
Willamette Industries, Inc.................... 12,000 421,500
-------------
$ 3,034,700
-------------
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
EQUITY FUND (continued)
==============================================================================================================
Market
COMMON STOCK -- 95.9% Shares Value
- --------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES -- 8.5%
<S> <C> <C>
Colgate-Palmolive Co........................................... 4,800 $ 320,700
The Walt Disney Co............................................. 4,000 379,750
Gillette Co.................................................... 3,500 323,094
McDonald's Corp................................................ 14,000 679,000
PepsiCo, Inc................................................... 17,300 637,937
Sysco Corp..................................................... 15,000 668,438
------------
$ 3,008,919
------------
ENERGY -- 8.0%
Amoco Corp..................................................... 6,500 $ 585,000
Exxon Corp..................................................... 6,000 366,000
Mobil Corp..................................................... 10,000 719,375
Noble Affiliates, Inc.......................................... 19,000 705,375
Royal Dutch Petroleum Co....................................... 8,800 463,650
------------
$ 2,839,400
------------
CONSUMER CYCLICALS -- 6.6%
AutoZone, Inc.*................................................ 29,700 $ 891,000
H&R Block, Inc................................................. 20,600 844,600
Nike, Inc. - Class B........................................... 12,300 598,856
------------
$ 2,334,456
------------
COMMUNICATION SERVICES -- 5.5%
AirTouch Communications, Inc.*................................. 33,400 $ 1,310,950
AT&T Corp...................................................... 11,500 642,562
------------
$ 1,953,512
------------
UTILITIES -- 2.8%
Duke Energy Corp............................................... 18,590 $ 966,680
------------
TRANSPORTATION -- 1.7%
Landstar System, Inc.*......................................... 23,000 $ 596,562
------------
TOTAL COMMON STOCK (Cost $23,270,638).......................... $ 33,881,762
------------
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================================
Face Market
REPURCHASE AGREEMENTS(1) -- 4.2% Amount Value
- --------------------------------------------------------------------------------------------------------------
<S>............................................................ <C> <C>
Fifth Third Bank, 5.08%, dated 11/28/97, due 12/01/97,
repurchase proceeds $1,487,630............................... $ 1,487,000 $ 1,487,000
------------ ------------
TOTAL REPURCHASE AGREEMENTS.................................... $ 1,487,000 $ 1,487,000
============ ------------
TOTAL COMMON STOCK AND
REPURCHASE AGREEMENTS AT VALUE -- 100.1%............... $ 35,368,762
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%)................ (25,749)
------------
NET ASSETS -- 100.0%........................................... $ 35,343,013
============
</TABLE>
* Non-income producing securities.
(1) Repurchase agreements are fully collateralized by U.S. Government
obligations.
See accompanying notes to financial statements.
12
<PAGE>
BRUNDAGE, STORY AND ROSE INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
November 30, 1997
================================================================================
1. Organization
Brundage, Story and Rose Investment Trust (the Trust) was organized as an Ohio
business trust on October 1, 1990. The Trust offers two series of shares to
investors: the Brundage, Story and Rose Short/Intermediate Term Fixed-Income
Fund and the Brundage, Story and Rose Equity Fund (collectively, the Funds). The
Trust commenced operations on December 3, 1990, when Brundage, Story and
Rose, LLC (the Adviser) purchased the initial 5,000 shares of each Fund at $10
per share. The public offering of shares commenced on January 2, 1991.
The Brundage, Story and Rose Short/Intermediate Term Fixed-Income Fund (the Bond
Fund) seeks to provide a higher and more stable level of income than a money
market fund with more principal stability than a mutual fund investing in
intermediate and long-term fixed-income securities. The Bond Fund invests
primarily in short and intermediate-term fixed-income securities.
The Brundage, Story and Rose Equity Fund (the Equity Fund) seeks to provide
protection and enhancement of capital and growth of income. The Equity Fund
invests primarily in common stocks and securities convertible into common stock.
2. Significant Accounting Policies
The following is a summary of the Trust's significant accounting policies:
Securities valuation--The Funds' portfolio securities are valued as of the close
of the regular session of trading on the New York Stock Exchange (currently
4:00 p.m., Eastern time). Portfolio securities listed on stock exchanges and
securities traded in the over-the-counter market are valued at the last sale
price as of the close of business on the day the securities are being valued.
Securities not traded on a particular day, or for which the last sale price is
not readily available, are valued at the closing bid price quoted by brokers
that make markets in the securities. U.S. Government and agency obligations,
asset-backed securities and corporate bonds are valued at their most recent bid
price as obtained from one or more of the major market makers for such
securities or are valued at an estimated fair value obtained from an
independent pricing service based upon such factors as maturity, coupon, issuer
and type of security. If market quotations are not readily available,
securities will be valued at fair value as determined in good faith by the
Adviser consistent with procedures established by the Board of Trustees.
Repurchase agreements--Repurchase agreements, which are collateralized by U.S.
Government obligations, are valued at cost which, together with accrued
interest, approximates market. Collateral for repurchase agreements is held in
safekeeping in the customer-only account of the Funds' custodian at the
Federal Reserve Bank. At the time each Fund enters into a repurchase agreement,
the seller agrees that the value of the underlying securities, including accrued
interest, will be equal to or exceed the face amount of the repurchase
agreement. Each Fund enters into repurchase agreements only with institutions
deemed to be creditworthy by the Adviser, including the Funds' custodian, banks
having assets in excess of $10 billion and primary U.S. Government securities
dealers.
Share valuation--The net asset value of each Fund is calculated daily by
dividing the total value of that Fund's assets, less liabilities, by the number
of shares outstanding. The offering and redemption price per share of each Fund
are equal to the net asset value per share.
Investment income--Interest income is accrued as earned. Dividend income is
recorded on the ex-dividend date. Discounts and premiums on securities
purchased are accreted/amortized in accordance with income tax regulations which
approximate generally accepted accounting principles.
Distributions to shareholders--Dividends arising from net investment income for
the Bond Fund are declared daily and paid monthly. Dividends arising from net
investment income for the Equity Fund are declared and paid quarterly. With
respect to each Fund, net realized short-term capital gains, if any, may be
distributed throughout the year and net realized long-term capital gains, if
any, are distributed at least once each year. Income distributions and capital
gain distributions are determined in accordance with income tax regulations.
13
<PAGE>
Security transactions--Security transactions are accounted for on the trade
date. Securities sold are valued on a specific identification basis.
Securities traded on a to-be-announced basis--The Bond Fund periodically trades
portfolio securities on a "to-be-announced" (TBA) basis. In a TBA transaction,
the Fund has committed to purchase securities for which all specific information
is not yet known at the time of the trade, particularly the face amount and
maturity date in mortgage-backed and asset-backed securities transactions.
Securities purchased on a TBA basis are recorded on the trade date, however,
they are not settled until they are delivered to the Fund, normally 15 to 45
days later. These transactions are subject to market fluctuations and their
current value is determined in the same manner as for other portfolio
securities. When effecting such transactions, assets of a dollar amount
sufficient to make payment for the portfolio securities to be purchased are
placed in a segregated account on the trade date.
Use of estimates--The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could differ from those
estimates.
Federal income tax--It is each Fund's policy to comply with the special
provisions of the Internal Revenue Code available to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so qualifies
and distributes at least 90% of its taxable net income, the Fund (but not the
shareholders) will be relieved of federal income tax on the income distributed.
Accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also each Fund's intention to declare as dividends
in each calendar year at least 98% of its net investment income (earned during
the calendar year) and 98% of its net realized capital gains (earned during the
fiscal year ended November 30) plus undistributed amounts from prior years.
The following information is based upon federal income tax cost of portfolio
investments (excluding repurchase agreements) as of November 30, 1997:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
Bond Equity
Fund Fund
- ----------------------------------------------------------------------------------
<S> <C> <C>
Gross unrealized appreciation......................... $ 528,915 $ 11,028,788
Gross unrealized depreciation......................... (58,331) (417,664)
----------- ------------
Net unrealized appreciation........................... $ 470,584 $ 10,611,124
=========== ============
Federal income tax cost............................... $ 35,143,353 $ 23,270,638
=========== ============
- ----------------------------------------------------------------------------------
</TABLE>
As of November 30, 1997, the Bond Fund had capital loss carryforwards for
federal income tax purposes of $379,925, none of which expire prior to November
30, 2002. These capital loss carryforwards may be utilized in future years to
offset net realized capital gains prior to distributing such gains to
shareholders.
3. Investment Transactions
Purchases and proceeds from sales and maturities of investment securities, other
than short-term investments, amounted to $18,322,901 and $15,136,557,
respectively, for the Bond Fund and $15,478,689 and $14,783,656, respectively,
for the Equity Fund, during the year ended November 30, 1997.
4. Transactions with Affiliates
Certain Trustees and officers of the Trust are principals of the Adviser.
Certain officers of the Trust are officers of Countrywide Fund Services, Inc.
(CFS), the administrative services agent, shareholder servicing and transfer
agent, and accounting services agent for the Trust, and of Countrywide
Investments, Inc., the exclusive underwriter of the Funds' shares.
As of November 30, 1997, the Adviser, principals of the Adviser and certain
employee benefit plans of the Adviser collectively owned 18% and 33% of the
shares of beneficial interest outstanding of the Bond Fund and the Equity Fund,
respectively.
14
<PAGE>
ADVISORY AGREEMENT
Each Fund's investments are managed by the Adviser pursuant to the terms of an
Advisory Agreement. Under the Advisory Agreement, the Bond Fund and the Equity
Fund each pay the Adviser a fee, computed and accrued daily and paid monthly, at
an annual rate of 0.50% and 0.65%, respectively, of average daily net assets.
In order to reduce the operating expenses of the Bond Fund, the Adviser
voluntarily waived $140,249 of its investment advisory fees during the year
ended November 30, 1997.
ADMINISTRATIVE SERVICES AGREEMENT
Under the terms of the Administrative Services Agreement with the Trust, CFS
supplies non-investment related statistical and research data, internal
regulatory compliance services and executive and administrative services for the
Funds. CFS supervises the preparation of tax returns, reports to shareholders
of the Funds, reports to and filings with the Securities and Exchange Commission
and state securities commissions, and materials for meetings of the Board of
Trustees. For these services, CFS receives a monthly fee based on each Fund's
average daily net assets.
TRANSFER AGENT AND SHAREHOLDER SERVICE AGREEMENT
Under the terms of the Transfer, Dividend Disbursing, Shareholder Service and
Plan Agency Agreement with the Trust, CFS maintains the records of each
shareholder's account, answers shareholders' inquiries concerning their
accounts, processes purchases and redemptions of each Fund's shares, acts as
dividend and distribution disbursing agent and performs other shareholder
service functions. For these services, CFS receives a monthly fee based on the
number of shareholder accounts in each Fund. In addition, each Fund pays out-of-
pocket expenses including, but not limited to, postage and supplies.
ACCOUNTING SERVICES AGREEMENT
Under the terms of the Accounting Services Agreement with the Trust, CFS
calculates the daily net asset value per share and maintains the financial books
and records of each Fund. For these services, CFS receives a monthly fee from
each Fund. In addition, each Fund pays certain out-of-pocket expenses incurred
by CFS in obtaining valuations of such Fund's portfolio securities.
PLAN OF DISTRIBUTION
The Trust has a plan of distribution (the Plan) under which each Fund may incur
or reimburse the Adviser for expenses related to the distribution and promotion
of capital shares. The annual limitation for payment of such expenses under the
Plan is 0.25% of the average daily net assets of each Fund.
5. Capital Share Transactions
Proceeds and payments on capital shares sold and redeemed as shown in the
Statements of Changes in Net Assets are the result of the following capital
share transactions for the years ended November 30, 1997 and 1996:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
Bond Fund Equity Fund
---------------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
November 30, November 30, November 30, November 30,
1997 1996 1997 1996
---------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold.......................................... 651,578 430,192 226,359 157,706
Shares issued in reinvestment
of distributions to shareholders.................. 149,272 152,952 154,343 85,211
Shares redeemed...................................... (494,784) (748,745) (161,988) (262,040)
---------- ---------- ---------- ----------
Net increase (decrease) in shares outstanding........ 306,066 (165,601) 218,714 (19,123)
Shares outstanding, beginning of year................ 3,122,514 3,288,115 1,602,870 1,621,993
---------- ---------- ---------- ----------
Shares outstanding, end of year...................... 3,428,580 3,122,514 1,821,584 1,602,870
========== ========== ========== ==========
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
================================================================================
Arthur Andersen LLP
To the Shareholders and Board of Trustees
of the Brundage, Story and Rose Investment Trust:
We have audited the accompanying statements of assets and liabilities of the
Brundage, Story and Rose Short/Intermediate Term Fixed-Income Fund and the
Brundage, Story and Rose Equity Fund of the Brundage, Story and Rose Investment
Trust (an Ohio business trust), including the portfolios of investments, as of
November 30, 1997, the related statements of operations for the year then ended,
and the statements of changes in net assets and the financial highlights for the
periods indicated thereon. These financial statements and financial highlights
are the responsibility of the Trust's management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
November 30, 1997, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Brundage, Story and Rose Short/Intermediate Term Fixed-Income Fund and the
Brundage, Story and Rose Equity Fund of the Brundage, Story and Rose Investment
Trust as of November 30, 1997, the results of their operations for the year then
ended, and the changes in their net assets and the financial highlights for the
periods indicated thereon, in conformity with generally accepted accounting
principles.
/s/ Arthur Andersen LLP
Cincinnati, Ohio
December 31, 1997
16
<PAGE>
Brundage,
Story and Rose
Investment Trust
- ------------------------------------
312 Walnut Street, 21st Floor
Cincinnati, Ohio 45202-4094
Board of Trustees
- ------------------------------------
Francis S. Branin, Jr.
Malcolm D. Clarke, Jr.
Cheryl L. Grandfield
Antoinette Geyelin Hoar
Jerome B. Lieber
William M.R. Mapel
James G. Pepper
Crosby R. Smith
Charles G. Watson
Investment Adviser
- ------------------------------------
Brundage, Story and Rose, LLC
One Broadway
New York, New York 10004
Underwriter
- ------------------------------------
Countrywide Investments, Inc.
312 Walnut Street, 21st Floor
Cincinnati, Ohio 45202-4094
Transfer Agent
- ------------------------------------
Countrywide Fund Services, Inc.
P.O. Box 5354
Cincinnati, Ohio 45201-5354
Shareholder Services
- ------------------------------------
Nationwide: (Toll Free) 800-320-2212
Brundage,
Story and Rose
Investment Trust
- ------------------------------------
Annual Report
- ------------------------------------
November 30, 1997
- ------------------------------------
- ------------------------------------
- ------------------------------------
Short/Intermediate Term
- ------------------------------------
Fixed-Income Fund
- ------------------------------------
- ------------------------------------
Equity Fund
- ------------------------------------
- ------------------------------------
- ------------------------------------
- ------------------------------------
- ------------------------------------
- ------------------------------------
- ------------------------------------
- ------------------------------------
- ------------------------------------
- ------------------------------------
- ------------------------------------
- ------------------------------------
- ------------------------------------
[LOGO]
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> EQUITY FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1997
<PERIOD-END> NOV-30-1997
<INVESTMENTS-AT-COST> 24,757,638
<INVESTMENTS-AT-VALUE> 35,368,762
<RECEIVABLES> 73,848
<ASSETS-OTHER> 1,163
<OTHER-ITEMS-ASSETS> 583
<TOTAL-ASSETS> 35,444,356
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 101,343
<TOTAL-LIABILITIES> 101,343
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 21,183,303
<SHARES-COMMON-STOCK> 1,821,584
<SHARES-COMMON-PRIOR> 1,602,870
<ACCUMULATED-NII-CURRENT> 13,368
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 3,535,218
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 10,611,124
<NET-ASSETS> 35,343,013
<DIVIDEND-INCOME> 424,724
<INTEREST-INCOME> 56,243
<OTHER-INCOME> 0
<EXPENSES-NET> 374,206
<NET-INVESTMENT-INCOME> 106,761
<REALIZED-GAINS-CURRENT> 3,535,218
<APPREC-INCREASE-CURRENT> 3,111,825
<NET-CHANGE-FROM-OPS> 6,753,804
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 106,087
<DISTRIBUTIONS-OF-GAINS> 2,298,821
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 226,359
<NUMBER-OF-SHARES-REDEEMED> 161,988
<SHARES-REINVESTED> 154,343
<NET-CHANGE-IN-ASSETS> 7,802,891
<ACCUMULATED-NII-PRIOR> 12,694
<ACCUMULATED-GAINS-PRIOR> 2,298,821
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 204,053
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 374,206
<AVERAGE-NET-ASSETS> 31,420,444
<PER-SHARE-NAV-BEGIN> 17.18
<PER-SHARE-NII> 0.06
<PER-SHARE-GAIN-APPREC> 3.65
<PER-SHARE-DIVIDEND> 0.06
<PER-SHARE-DISTRIBUTIONS> 1.43
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 19.40
<EXPENSE-RATIO> 1.19
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> SHORT/INTERMEDIATE TERM FIXED-INCOME FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1997
<PERIOD-END> NOV-30-1997
<INVESTMENTS-AT-COST> 35,887,937
<INVESTMENTS-AT-VALUE> 36,357,937
<RECEIVABLES> 395,631
<ASSETS-OTHER> 1,222
<OTHER-ITEMS-ASSETS> 760
<TOTAL-ASSETS> 36,755,550
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 102,733
<TOTAL-LIABILITIES> 102,733
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 36,562,158
<SHARES-COMMON-STOCK> 3,428,580
<SHARES-COMMON-PRIOR> 3,122,514
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (379,925)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 470,584
<NET-ASSETS> 36,652,817
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,187,972
<OTHER-INCOME> 0
<EXPENSES-NET> 217,842
<NET-INVESTMENT-INCOME> 1,970,130
<REALIZED-GAINS-CURRENT> (30,709)
<APPREC-INCREASE-CURRENT> 33,026
<NET-CHANGE-FROM-OPS> 1,972,447
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,970,130
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 651,578
<NUMBER-OF-SHARES-REDEEMED> 494,784
<SHARES-REINVESTED> 149,272
<NET-CHANGE-IN-ASSETS> 3,276,266
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (349,216)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 167,570
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 358,091
<AVERAGE-NET-ASSETS> 33,530,804
<PER-SHARE-NAV-BEGIN> 10.69
<PER-SHARE-NII> 0.62
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0.62
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.69
<EXPENSE-RATIO> 0.65
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
