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Previous: ROCHESTER PORTFOLIO SERIES, NSAR-A, 1998-08-27 |
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<PAGE>
ACCESSOR FUNDS, INC.
- --------------------------------------------------------------------------------
THE VALUE OF
TIME-HONORED
TRADITIONS
COMBINED WITH
LEADING-EDGE
INVESTMENT
TECHNOLOGY
SEMI-ANNUAL
REPORT
JUNE 30, 1998
(UNAUDITED)
PUBLISHED BY
BENNINGTON CAPITAL MANAGEMENT L.P. [LOGO]
<PAGE>
ACCESSOR FUNDS, INC.
Semi-Annual Report
(Unaudited)
June 30, 1998
TABLE OF CONTENTS
PAGE
LETTER FROM THE PRESIDENT. . . . . . . . . . . . . . . . . . . . . . . . . .1
SCHEDULE OF INVESTMENTS:
Growth Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
Value and Income Portfolio . . . . . . . . . . . . . . . . . . . . . . . .7
Small to Mid Cap Portfolio . . . . . . . . . . . . . . . . . . . . . . . 13
International Equity Portfolio . . . . . . . . . . . . . . . . . . . . . 20
Intermediate Fixed-Income Portfolio. . . . . . . . . . . . . . . . . . . 25
Short Intermediate Fixed-Income Portfolio. . . . . . . . . . . . . . . . 28
Mortgage Securities Portfolio. . . . . . . . . . . . . . . . . . . . . . 31
U.S. Government Money Portfolio. . . . . . . . . . . . . . . . . . . . . 38
FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
NOTES TO FINANCIAL STATEMENTS. . . . . . . . . . . . . . . . . . . . . . . 46
FINANCIAL HIGHLIGHTS (PER SHARE DATA). . . . . . . . . . . . . . . . . . . 57
This report, including the financial statements herein, is transmitted to the
shareholders of Accessor Funds, Inc. for their information. This material is
proprietary and may not be reproduced, transferred, or distributed in any
form without prior written permission from Bennington Capital Management. It
is delivered of an "as is" basis without warranty. This is not a prospectus,
circular or representation intended for use in the purchase of shares of
Accessor Funds, Inc. or any securities mentioned in this report. The
portfolio risk information quoted is historical. Future risk will fluctuate,
and past risk is not necessarily indicative of future risk. Investments in
securities of non-US issuers and foreign currencies involve investment risks
different than those of US issuers; the prospectuses contain further
information and details regarding these risks.
For more complete information about Accessor Funds, Inc. including fees and
expenses, please call 1-800-759-3504 for the prospectus. The prospectus should
be read carefully before an investment is made.
<PAGE>
A LETTER FROM THE PRESIDENT
TO OUR SHAREHOLDERS:
The Accessor Funds, Inc. is pleased to present its 1998 SEMIANNUAL REPORT. This
report covers information on the eight Portfolios of the Accessor family.
We have continued our focus on the "...VALUE OF TIME-HONORED TRADITIONS COMBINED
WITH LEADING-EDGE INVESTMENT TECHNOLOGY." We remain committed to providing you,
our shareholders, with superior investment products to meet your varying
financial goals. These efforts proved effective as our Funds, in general,
provided solid performance as compared to each of their respective benchmarks.
During the period since the 1997 ANNUAL REPORT, Bennington Capital Management
has initiated a number of enhancements or changes to the management and product
structures of the Funds as well as a continued growth in assets thanks to many
of you.
First, effective May 1 the Accessor family was able to offer shares in a
multiple class environment. Beginning in mid-June, the Small to Mid Cap
Portfolio was the first to operate with an additional class of shares: the
INVESTOR CLASS SHARES. As of the date of this report, all Portfolios operate in
a multiple class environment. The Investor Class Shares are offered primarily
through financial institutions and intermediaries.
Second, on April 30, Smith Barney and Banker's Trust Company ceased in their
roles as money manager for the Intermediate Fixed-Income and Short Intermediate
Fixed-Income Portfolios, respectively. Effective May 1, Bennington Capital
Management began managing the two Portfolios. We are confident that the
investment process implemented by our Investment Department, under the guidance
of our Chief Investment Officer, Mr. Ravindra Deo, will produce results
consistent with each Portfolio's strategy.
We look forward to having the opportunity to work with you over the upcoming
year and continuing to earn your support and trust. Thank you for your
continued confidence with and investment in the Accessor Funds.
Sincerely,
/s/ J. Anthony Whatley, III
J. Anthony Whatley, III
President, and Chief Executive Officer
Bennington Capital Management LP
<PAGE>
ACCESSOR FUNDS, INC.
GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
COMMON STOCK (99.7%)
ADVERTISING (1.0%)
Interpublic Group of Companies, 12,200 $ 740,388
Incorporated
Omnicom Group 9,600 478,800
1,219,188
-------------
AIR TRAVEL (0.3%)
Southwest Airlines Company 12,400 367,350
-------------
367,350
APPAREL (0.6%)
Gap, Incorporated 12,600 776,475
-------------
776,475
BANKS/SAVINGS & LOANS (4.0%)
Chase Manhattan Corporation 24,400 1,842,200
Fifth Third Bancorp 10,350 652,050
MBNA Corporation 21,950 724,350
State Street Corporation 3,300 229,350
US Bancorporation 18,300 786,900
Washington Mutual, Incorporated 15,600 677,625
-------------
4,912,475
BEVERAGES - SOFT DRINKS (5.1%)
Coca Cola Company 72,500 6,198,750
-------------
6,198,750
BREWERY (0.3%)
Anheuser Busch Companies, Incorporated 8,200 386,937
-------------
386,937
BROKERAGES (1.6%)
Morgan Stanley Dean Witter & Company 21,100 1,928,013
-------------
1,928,013
CHEMICALS (4.5%)
Dupont de Nemours & Company 37,000 2,761,120
Warner Lambert, Incorporated 39,500 2,740,313
-------------
5,501,433
COMMERCIAL SERVICES (3.7%)
Automatic Data Processing 13,000 947,375
Cendant Corporation* 53,500 1,116,813
Cognizant Corporation 11,100 699,300
Ecolab, Incorporated 21,800 675,800
Pitney-Bowes, Incorporated 22,900 1,102,062
-------------
4,541,350
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-2-
<PAGE>
ACCESSOR FUNDS, INC.
GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONTINUED)
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
COMPUTER SOFTWARE & SERVICES (10.3%)
Autodesk Incorporated 3,900 $ 150,638
Cisco Systems, Incorporated* 40,100 3,691,706
Computer Association
International, Incorporated 18,000 1,000,125
Microsoft Corporation* 68,800 7,456,200
Parametric Technology Corporation* 8,600 233,275
-------------
12,531,944
COMPUTER SYSTEMS & SERVICES (2.0%)
Dell Computer Corporation* 18,200 1,689,188
EMC Corporation 16,400 734,925
-------------
2,424,113
COSMETICS & TOILETRIES (0.9%)
Colgate-Palmolive Company 12,700 1,117,600
-------------
1,117,600
DIVERSIFIED MANUFACTURER (6.7%)
General Electric Company 90,000 8,190,000
-------------
8,190,000
DRUGS & PHARMACEUTICALS (17.4%)
Abbott Laboratories 28,900 1,181,287
American Home Products Corporation 40,200 2,080,350
Bristol-Myers Squibb Company 35,000 4,022,813
Lilly (Eli) & Company 13,400 885,238
Johnson & Johnson 22,400 1,652,000
Merck & Company 34,800 4,654,500
Pfizer, Incorporated 37,900 4,119,256
Schering-Plough Corporation 29,800 2,730,425
-------------
21,325,869
ELECTRONICS (3.5%)
Intel Corporation 58,800 4,358,550
-------------
4,358,550
FINANCE (2.4%)
MGIC Investment Corporation 6,600 376,613
Federal National Mortgage Association 41,600 2,527,200
-------------
2,903,813
FOODS (1.5%)
H.J. Heinz Company 5,100 286,238
Quaker Oats Company 2,900 159,319
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-3-
<PAGE>
ACCESSOR FUNDS, INC.
GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONTINUED)
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
FOODS (CONTINUED)
Sara Lee Corporation 9,400 $525,812
Sysco Corporation 15,500 397,187
Wrigley Wm. Jr. Company 4,600 450,800
-------------
1,819,356
HOSPITAL MANAGEMENT (0.6%)
Cardinal Health, Incorporated 7,700 721,875
-------------
721,875
HOTELS & MOTELS (0.3%)
Marriott International, Incorporated 13,100 424,113
-------------
424,113
HOUSEHOLD PRODUCTS (5.0%)
Clorox Company 5,600 534,100
Gillette Company 13,200 748,275
Newell Company 8,300 413,444
Procter & Gamble Company 33,100 3,014,168
Unilever NV 17,300 1,365,619
-------------
6,075,606
INSURANCE (1.9%)
American International Group 16,100 2,350,600
-------------
2,350,600
MACHINERY (1.4%)
Aeroquip-Vickers, Incorporated 4,300 251,013
Dover Corporation 18,000 616,500
Illinois Tool Works 13,100 873,606
-------------
1,741,119
MEDIA (0.3%)
Comcast Corporation Class A 8,100 328,809
-------------
328,809
MEDICAL SUPPLIES (1.7%)
Amgen, Incorporated* 6,300 411,863
Biomet, Incorporated 5,800 191,763
Guidant Corporation 11,800 841,487
HBO & Company 19,200 676,800
-------------
2,121,913
OFFICE EQUIPMENT & SUPPLIES (0.3%)
Xerox Corporation 3,800 386,175
-------------
386,175
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-4-
<PAGE>
ACCESSOR FUNDS, INC.
GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONTINUED)
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
OIL & GAS (1.0%)
Anadarko Petroleum Corporation 2,500 $ 167,969
Schlumberger Limited 15,500 1,058,844
-------------
1,226,813
PRINTING & PUBLISHING (0.4%)
Tribune Company 6,600 454,163
-------------
454,163
PUBLISHING NEWS (0.9%)
Gannett Company, Incorporated 15,300 1,087,256
-------------
1,087,256
RETAIL - TRADE (8.2%)
Price/Costco, Incorporated* 13,000 819,813
Dayton Hudson Corporation 17,000 824,500
Home Depot, Incorporated 32,500 2,699,531
TJX Companies, Incorportated 25,200 607,950
Wal-Mart Stores, Incorporated 74,000 4,495,500
Walgreen Company 13,200 545,325
-------------
9,992,619
STOCK EQAUIVALENT (2.6%)
Standard & Poors Depository Receipts 27,880 3,159,153
-------------
3,159,153
TELECOMMUNICATIONS (9.2%)
Airtouch Communications, Incorporated* 9,100 531,781
Ameritech Corporation 27,200 1,220,600
Bell Atlantic Corporation 4,700 2,144,375
GTE Corporation 28,100 1,563,063
Lucent Technology, Incorporated 29,500 2,454,031
SBC Communications, Incorporated 52,200 2,088,000
Tele-Communications, Incorporated* 13,500 518,906
Tellabs, Incorporated* 10,700 766,388
-------------
11,287,144
TEXTILES (0.1%)
Owens Corning 2,800 114,275
-------------
114,275
TOTAL COMMON STOCK (IDENTIFIED COST $92,868,808) 121,974,849
-------------
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-5-
<PAGE>
ACCESSOR FUNDS, INC.
GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONCLUDED)
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
SHORT-TERM INVESTMENTS (0.3%)
Fifth Third Bank Repurchase Agreement
(collateralized by 314,000 U.S. Treasury
Notes, 7.50%, 10/31/99, market value $321,653) 5.450% 07/01/98 $ 315,203 $ 315,203
---------------
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $315,203) 315,203
---------------
TOTAL INVESTMENTS (100.0%) (IDENTIFIED COST $93,184,011)(1) $ 122,290,052
---------------
---------------
</TABLE>
* Non-income producing security.
(1) See Note 5 for important tax information
- --------------------------------------------------------------------------------
The notes are an integral part of the financial statements.
-6-
<PAGE>
ACCESSOR FUNDS, INC.
VALUE AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
COMMON STOCK (92.8%)
AEROSPACE - DEFENSE (1.7%)
General Dynamics Corporation 24,500 $ 1,139,250
Goodrich (B.F.) Company 8,300 411,888
Lockheed Martin Corporation 5,200 550,550
-------------
2,101,688
AIR TRAVEL (1.3%)
AMR Corporation* 18,600 1,548,450
-------------
1,548,450
APPAREL (1.5%)
Venator Group 51,800 990,675
Fruit Of The Loom, Incorporated* 26,200 869,513
-------------
1,860,188
AUTOMOBILES (1.6%)
Ford Motor Company 8,000 472,000
General Motors Corporation 22,300 1,489,919
-------------
1,961,919
BANKS/SAVINGS & LOANS (15.7%)
Banc One Corporation 36,400 2,031,575
Bankamerica Corporation 5,500 475,406
Bankers Trust New York Corporation 12,800 1,485,600
Chase Manhattan Corporation 20,000 1,510,000
Citicorp 5,400 805,950
Comerica, Incorporated 22,200 1,470,750
First Chicago NBD Corporation 12,700 1,125,538
First Union Corporation 48,900 2,848,425
Fleet Financial Group, Incorporated 13,500 1,127,250
Golden West Financial Corporation 13,500 1,435,218
J.P. Morgan & Company 9,100 1,065,838
Nationsbank Corporation 39,700 3,037,050
Republic Of New York Corporation 15,200 956,650
-------------
19,375,250
BEVERAGES - SOFT DRINKS (0.6%)
Coca Cola Company 9,200 786,600
-------------
786,600
BROKERAGES (2.3%)
Lehman Brothers Holdings, Incorporated 13,200 1,023,825
Morgan Stanley Dean Witter & Company 19,900 1,818,363
-------------
2,842,188
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-7-
<PAGE>
ACCESSOR FUNDS, INC.
VALUE AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONTINUED)
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
BUILDING & CONSTRUCTION (0.4%)
Centex Corporation 12,600 $ 475,650
-------------
475,650
CHEMICALS (2.0%)
Amgen, Incorporated* 19,600 1,281,350
Engelhard Corporation 57,100 1,156,275
-------------
2,437,625
COMPUTER SOFTWARE & SERVICES (4.1%)
Autodesk, Incorporated 26,900 1,039,013
IBM Corporation 27,500 3,157,344
Sun Microsystems, Incorporated* 5,800 251,937
Unisys Corporation* 21,300 601,725
-------------
5,050,019
COMPUTER SYSTEMS & SERVICES (1.0%)
Apple Computers, Incorporated* 42,500 1,219,219
-------------
1,219,219
DIVERSIFIED MANUFACTURER (0.4%)
Tenneco, Incorporated 12,600 479,588
-------------
479,588
DRUGS & PHARMACEUTICALS (0.7%)
Schering-Plough Corporation 9,800 897,925
-------------
897,925
ELECTRICAL UTILITIES (4.5%)
Columbia Energy Group 24,300 1,351,688
DTE Energy Company 30,800 1,243,550
First Energy Corporation 37,500 1,153,125
GPU, Incorporated 20,900 790,281
Public Service Enterprise Group 29,400 1,012,462
-------------
5,551,106
ELECTRONICS (0.8%)
Tektronix, Incorporated 27,700 979,888
-------------
979,888
ENTERTAINMENT & LEISURE (1.7%)
Brunswick Corporation 40,000 990,000
The Walt Disney Company 4,100 430,756
Ryan's Steak House, Incorporated* 66,600 682,650
-------------
2,103,406
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-8-
<PAGE>
ACCESSOR FUNDS, INC.
VALUE AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONTINUED)
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
FOODS (2.0%)
Fleming Companies, Incorporated 51,500 $ 904,469
Quaker Oats Company 8,700 477,956
Supervalu, Incorporated 24,600 1,091,625
-------------
2,474,050
HOUSEHOLD PRODUCTS (1.5%)
Fort James Corporation 27,800 1,237,100
Owens Illinois, Incorporated* 14,800 662,300
-------------
1,899,400
INSURANCE (7.2%)
Allstate Corporation 22,100 2,023,531
Cigna Corporation 14,000 966,000
Conseco, Incorporated 28,100 1,313,675
Jefferson Pilot Company 4,300 249,131
Loews Corporation 14,500 1,263,313
MBIA, Incorporated 18,800 1,407,650
Traveler's Group, Incorporated 27,700 1,679,313
-------------
8,902,613
MACHINERY (5.0%)
Aeroquip-Vickers, Incorporated 12,100 706,338
Case Corporation 16,400 791,300
Catapillar, Incorporated 28,000 1,480,500
Dana Corporation 25,200 1,348,200
Deere & Company 12,800 676,800
Parker-Hannifin Corporation 29,500 1,124,687
-------------
6,127,825
MANUFACTURING - DIVERSIFIED (1.6%)
FMC Corporation* 14,100 961,444
PPG Industries, Incorporated 14,500 1,008,656
-------------
1,970,100
MEDIA (1.9%)
Mallinckroft Group 32,200 955,938
Viacom Class B* 22,900 1,333,925
-------------
2,289,863
METALS (0.7%)
USX-U.S. Steel Group, Incorporated 27,900 920,700
-------------
920,700
OFFICE EQUIPMENT & SUPPLIES (0.1%)
Ikon Office Solutions, Incorporated 10,000 145,625
-------------
145,625
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-9-
<PAGE>
ACCESSOR FUNDS, INC.
VALUE AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONTINUED)
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
OIL & GAS (14.8%)
Ashland, Incorporated 9,200 $ 474,950
Chevron Corporation 4,600 382,088
Coastal Corporation 18,500 1,291,531
Exxon Corporation 82,900 5,911,800
Helmerich & Payne, Incorporated 48,700 1,083,575
Mobil Corporation 37,500 2,873,438
PP&L Resources, Incorporated 17,300 392,494
Phillips Petroleum Company 13,300 640,893
Rowan Companies, Incorporated* 31,600 614,225
Royal Dutch Petroleum Company 15,200 833,150
Sun Company, Incorporated 32,700 1,269,169
Texaco, Incorporated 25,700 1,533,969
USX-Marathon Group 30,100 1,032,806
-------------
18,334,088
PAPER & FOREST PRODUCTS (0.2%)
Westvaco Corporation 10,000 282,500
-------------
282,500
PRINTING & PUBLISHING (0.9%)
American Greetings Corporation 13,700 697,844
Tribune Company 6,400 440,400
-------------
1,138,244
PUBLISHING NEWS (0.7%)
Gannett Company, Incorporated 12,700 902,494
-------------
902,494
RETAIL - TRADE (3.5%)
Dayton Hudson Corporation 6,700 324,950
Dillard's, Incorporated 14,300 592,556
Kmart Corporation* 60,700 1,168,475
Sears, Roebuck & Company 29,200 1,783,025
TJX Companies, Incorporated 17,000 410,125
-------------
4,279,131
TELECOMMUNICATIONS (9.3%)
AT&T Company 66,700 3,810,238
Ameritech Corporation 16,000 718,000
Bell Atlantic Corporation 47,340 2,159,888
Bellsouth Corporation 45,200 3,034,050
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-10-
<PAGE>
ACCESSOR FUNDS, INC.
VALUE AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONTINUED)
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
TELECOMMUNICATIONS (CONTINUED)
General Instrument Corporation* 39,700 $ 1,079,343
SBC Communications, Incorporated 16,400 656,000
-------------
11,457,519
TELECOMMUNICATION - EQUIPMENT (0.7%)
Andrew Corporation* 46,000 830,875
-------------
830,875
TRANSPORATION (1.1%)
Laidlaw, Incorporated 28,800 351,000
Navistar International* 18,500 534,188
Paccar, Incorporated 9,000 470,250
-------------
1,355,438
TRUCKING (0.6%)
Ryder Systems, Incorporated 24,700 779,594
-------------
779,594
UTILITIES (0.9%)
Consolidated Natural Gas Company 8,000 471,000
Peco Energy Company 23,000 671,313
-------------
1,142,313
TOTAL COMMON STOCK (IDENTIFIED COST $100,528,777) 114,903,081
-------------
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-11-
<PAGE>
ACCESSOR FUNDS, INC.
VALUE AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONCLUDED)
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
SHORT-TERM INVESTMENTS (7.1%)
U.S. Treasury Bills (1)(2) 5.100% 09/17/98 $ 560,000 $ 553,896
Fifth Third Bank Repurchase Agreement (collateralized 5.450% 07/01/98 8,251,000 8,318,537
by 8,251,000 FHLMC Pool #G10657, 7.50%, 02/01/12, ---------------
market value $8,485,641)
TOTAL SHORT-TERM INVESTMENTS 8,872,433
(IDENTIFIED COST $8,872,433) ---------------
TOTAL INVESTMENTS (100.0%) (IDENTIFIED COST $109,401,210)(3) $ 123,775,514
---------------
---------------
* Non-income producing security.
(1) Yield at time of purchase.
(2) Security has been segregated with the custodian as collateral to cover
margin requirements for the following open futures contracts at June 30, 1998.
(3) See Note 5 for important tax information.
<CAPTION>
OUTSTANDING FUTURES CONTRACTS
UNITS PER CURRENT UNREALIZED
TYPE EXPIRATION CONTRACTS CONTRACT VALUE APPRECIATION
<S> <C> <C> <C> <C> <C>
S&P 500 Futures 09/21/98 29 250 $8,286,750 $184,263
</TABLE>
- --------------------------------------------------------------------------------
The notes are an integral part of the financial statements
-12-
<PAGE>
<TABLE>
<CAPTION>
ACCESSOR FUNDS, INC.
SMALL TO MID CAP PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
DESCRIPTION SHARES VALUE
<S> <C> <C>
COMMON STOCK (98.0%)
ADVERTISING (2.7%)
Belo A H Corporation 82,800 $ 2,018,250
Snyder Communications, Incorporated* 43,500 1,914,000
Valassis Communications* 49,800 1,920,413
--------------
5,852,663
AEROSPACE - DEFENSE (1.0%)
AAR Corporation 25,200 744,975
Sundstrand Corporation 25,700 1,471,325
--------------
2,216,300
AIR TRAVEL (1.1%)
Midwest Express Holdings* 39,800 1,440,263
UAL Corporation* 11,300 881,400
--------------
2,321,663
APPAREL (5.0%)
Abercrombie & Fitch, Class A* 104,900 4,615,600
The Buckle, Incorporated* 59,150 1,744,925
Footstar Incorporated* 33,500 1,608,000
Fossil, Incorporated* 72,050 1,792,244
Timberland Company* 12,100 870,444
--------------
10,631,213
AUTOMOTIVE PARTS & EQUIPTMENT (0.8%)
Arvin Industries, Incorporated 29,100 1,056,694
Lear Seating Corporation* 14,900 764,556
--------------
1,821,250
BANKS/SAVINGS & LOANS (9.6%)
Amsouth Bancorporation 118,200 4,646,738
City National Corporation 68,900 2,544,993
Commerce Bancorp Incorporated New Jersey 12,100 707,850
Commerce Bancshare, Incorporated 19,900 971,368
Dime Bancorp Incorporated 24,800 742,450
First Citizens Bancshares, Corporation 2,000 198,250
Firstfed Financial Corporation* 35,400 1,840,800
Greenpoint Financial Corporation 44,800 1,685,600
Imperial Bancorporation* 86,700 2,601,000
M & T Bank Corporation 1,400 775,600
</TABLE>
- -------------------------------------------------------------------------------
See notes to financial statements
-13-
<PAGE>
<TABLE>
<CAPTION>
ACCESSOR FUNDS, INC.
SMALL TO MID CAP PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONTINUED)
DESCRIPTION SHARES VALUE
<S> <C> <C>
BANKS/SAVINGS & LOANS (CONTINUED)
North Fork Bancorporation 46,452 $ 1,135,171
Popular, Incorporated 15,800 1,050,700
T R Financial Corporation 11,200 469,000
Zions Bancorp 22,300 1,184,688
--------------
20,554,208
BROKERAGES (2.0%)
Donaldson Lufkin Jenrette 22,500 1,143,281
A.G. Edwards, Incorporated 75,400 3,218,638
--------------
4,361,919
BUILDING & CONSTRUCTION (2.6%)
Lafarge Corporation 21,500 845,219
Lennar Corporation 68,000 2,006,000
Lone Star Industries, Incorporated 10,900 839,981
NVR, Incorporated* 28,700 1,178,494
U.S. Home Corporation* 17,300 713,625
--------------
5,583,319
BUSINESS SERVICES (1.3%)
Airborne Freight 6,000 209,625
Personnel Group Of America, Incorporated* 84,600 1,692,000
Robert Half International, Incorporated* 14,800 826,950
--------------
2,728,575
CHEMICALS (2.0%)
Dexter Corporation 9,700 308,581
Tredgar Industries, Incorporated 12,400 1,052,450
Water Corporation* 48,800 2,876,150
--------------
4,237,181
COMMERCIAL SERVICES (3.2%)
Accustaff Incorporated* 17,900 559,375
Advo Incorporated* 19,400 546,838
Hertz Corporation 65,400 2,898,037
Staffmark, Incorporated* 20,900 765,463
Viad Corporation 74,700 2,072,925
--------------
6,842,638
COMPUTER SOFTWARE & SERVICES (5.6%)
American Management Systems, Incorporated* 40,100 1,200,494
BMC Software Incorporated* 90,000 4,674,375
Ciber, Incorporated* 46,000 1,748,000
Information Management Resources* 34,100 1,153,006
</TABLE>
- -------------------------------------------------------------------------------
See notes to financial statements
-14-
<PAGE>
<TABLE>
<CAPTION>
ACCESSOR FUNDS, INC.
SMALL TO MID CAP PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONTINUED)
DESCRIPTION SHARES VALUE
<S> <C> <C>
COMPUTER SOFTWARE & SERVICES (CONTINUED)
Keane, Incorporated* 26,900 $ 1,506,400
Sabre Group Holdings, Incorporated* 10,400 395,200
Sterling Software, Incorporated* 43,300 1,280,056
--------------
11,957,531
COMPUTER SYSTEMS & SERVICES (1.7%)
International Micro Incorporated - Class A* 72,400 3,203,700
Semtech Corporation* 28,100 497,019
--------------
3,700,719
CONSTRUCTION EQUIPMENT (0.2%)
Southdown, Incorporated 7,100 506,763
--------------
506,763
COSMETICS & TOILETRIES (0.4%)
Estee Lauder Companies Class A 11,900 829,281
--------------
829,281
DIVERSIFIED MANUFACTURER (1.8%)
Carlisle Companies Incorporated 14,300 615,794
Danaher Corporation 36,300 1,331,756
Pentair, Incorporated 14,400 612,000
Smith (A.O.) Corporation 23,300 1,204,319
--------------
3,763,869
DRUGS & PHARMACEUTICALS (2.6%)
Bindley Western Industry, Incorporated 82,666 2,727,978
McKesson Corporation 20,800 1,690,000
NBTY, Incorporated* 59,500 1,093,313
--------------
5,511,291
ELECTRICAL EQUIPMENT (0.4%)
C&D Technologies, Incorporated 16,100 933,800
--------------
933,800
ELECTRONICS (2.7%)
Burr-Brown Corporation* 18,600 390,600
Linear Technology Corporation 22,300 1,344,969
SCI Systems* 38,300 1,441,037
Technitrol, Incorporated 63,300 2,528,044
--------------
5,704,650
FINANCE (0.4%)
Capstead Mortgage Corporation 42,900 359,288
Trans Financial Incorporated 9,900 568,013
--------------
927,301
</TABLE>
- -------------------------------------------------------------------------------
See notes to financial statements
-15-
<PAGE>
<TABLE>
<CAPTION>
ACCESSOR FUNDS, INC.
SMALL TO MID CAP PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONTINUED)
DESCRIPTION SHARES VALUE
<S> <C> <C>
FOODS (2.7%)
Flemming Companies, Incorporated 21,000 $ 368,813
Hormel Foods Corporation 14,100 487,331
Interstate Bakeries 110,800 3,677,175
Richfood Holdings, Incorporated 34,000 703,375
Suiza Foods Corporation* 10,900 650,594
--------------
5,887,288
FURNITURE & FIXTURES (2.0%)
Ethan Allen Interiors 70,700 3,530,581
La-Z-Boy, Incorporated 12,900 728,850
--------------
4,259,431
HOSPITAL MANAGEMENT (2.0%)
Trigon Healthcare Incorporated* 21,200 767,175
Universal Health Services, Incorporated* 60,000 3,502,500
--------------
4,269,675
INSURANCE (10.6%)
Ambac Financial Group, Incorporated 28,000 1,638,000
Berkshire Hathaway, Incorporated* 65 5,089,818
Equitable Companies, Incorporated 22,200 1,663,613
Fidelity National Finance, Incorporated 31,700 1,262,056
First American Financial 50,900 4,581,000
Mercury General Corporation 63,500 4,091,781
Old Republic International Corporation 107,400 3,148,163
Traveler's Property Casualty Class A 13,300 570,238
Wellpoint Health Networks, Incorporated* 8,000 592,000
--------------
22,636,669
MACHINERY (4.2%)
Gardner Denver Machinery, Incorporated* 44,900 1,240,363
Kaydon Corporation 11,700 413,156
Kuhlman Corporation 9,900 391,669
Lexmark International Group, Incorporated
Class A* 59,100 3,605,100
Manitowac, Incorporated 14,900 600,656
SPS Technologies, Incorporated* 17,000 994,500
Terex Corporation* 45,500 1,296,750
Trinity Industries, Incorporated 11,600 481,400
--------------
9,023,594
MEDIA (0.8%)
Intimate Brands, Incorporated 62,400 1,719,900
--------------
1,719,900
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-16-
<PAGE>
<TABLE>
<CAPTION>
ACCESSOR FUNDS, INC.
SMALL TO MID CAP PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONTINUED)
DESCRIPTION SHARES VALUE
<S> <C> <C>
MEDICAL SUPPLIES (1.8%)
Arterial Vascular Engineering* 20,200 $ 722,150
Cooper Companies, Incorporated* 26,800 976,525
Visx Corporation* 36,200 2,153,900
--------------
3,852,575
METALS (1.4%)
General Cable Corporation 16,900 487,988
Precision Castparts Corporation 29,900 1,595,913
Texas Industries, Incorporated 16,200 858,600
--------------
2,942,501
OFFICE EQUIPMENT & SUPPLIES (1.7%)
Comdisco, Incorporated 187,400 3,560,600
--------------
3,560,600
OIL & GAS (7.2%)
Energy East Corporation 97,900 4,075,088
Houston Exploration Company* 63,300 1,451,943
MCN Energy Group, Incorporated 7,700 191,538
Marketspan Corporation* 26,400 790,350
National Fuel Gas 22,400 975,800
Pool Energy Services* 29,900 441,025
Seacor Holdings, Incorporated* 17,700 1,085,231
Tesoro Petroleum Corporation* 42,400 673,100
Vastar Resources Incorporated 12,800 559,200
Veritas DGC, Incorporated* 95,300 4,759,044
Vintage Petroleum, Incorporated 17,000 320,875
--------------
15,323,194
OTHER DURABLE GOODS (2.3%)
Avondale Industries, Incorporated* 27,400 756,069
Pillowtex Corporation 13,800 553,725
Vulcan Materials Company 33,200 3,542,025
--------------
4,851,819
PAPER & FOREST PRODUCTS (0.8%)
Mail - Well, Incorporated* 81,300 1,763,194
--------------
1,763,194
PRINTING & PUBLISHING (0.4%)
Washington Post Company 1,400 806,400
--------------
806,400
</TABLE>
- -------------------------------------------------------------------------------
See notes to financial statements
-17-
<PAGE>
<TABLE>
<CAPTION>
ACCESSOR FUNDS, INC.
SMALL TO MID CAP PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONTINUED)
DESCRIPTION SHARES VALUE
<S> <C> <C>
RECREATION (0.5%)
International Game Technology 15,600 $ 378,300
Showbiz Pizza Time, Incorporated* 16,900 681,281
--------------
1,059,581
RETAIL - GROCERY (0.2%)
Hannaford Brothers Corporation 11,500 506,000
--------------
506,000
RETAIL - TRADE (3.9%)
Department 56, Incorporated* 35,800 1,270,900
Hillenbrand Industries, Incorporated 29,900 1,794,000
Linens 'N Things, Incorporated* 12,300 375,919
Herman Miller, Incorporated 12,700 308,769
Ross Stores, Incorporated 10,100 434,300
Russ Berrie & Company, Incorporated 46,500 1,162,500
Shopko Stores, Incorporated* 16,400 557,600
United Stationers, Incorporated* 25,100 1,625,225
Zale Corporation* 29,300 932,106
--------------
8,461,319
RESTAURANTS (1.0%)
Brinker International, Incorporated* 76,400 1,470,700
Foodmaker, Incorporated (New)* 36,900 622,688
--------------
2,093,388
TELECOMMUNICATIONS (2.1%)
Century Telephone Enterprises 53,150 2,438,256
Southern New England Telecommunication 5,800 379,900
Superior Telecom, Incorporated 41,450 1,725,356
--------------
4,543,512
TOBACCO (1.1%)
Universal Corporation 61,400 2,294,825
--------------
2,294,825
TRANSPORATION (0.9%)
Gatx Corporation 14,800 649,350
U.S. Freightways Corporation 23,700 778,397
Varlen Corporation 11,982 413,379
--------------
1,841,126
</TABLE>
- -------------------------------------------------------------------------------
See notes to financial statements
-18-
<PAGE>
<TABLE>
<CAPTION>
ACCESSOR FUNDS, INC.
SMALL TO MID CAP PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONCLUDED)
DESCRIPTION SHARES VALUE
<S> <C> <C>
UTILITIES (3.1%)
American Water Works, Incorporated 31,000 $ 961,000
Conectiv, Incorporated 10,425 213,713
Ipalco Enterprises, Incorporated 64,800 2,879,550
Minnesota Power & Light Company 17,400 691,650
Western Resources 46,800 1,816,425
--------------
6,562,338
WASTE MANAGEMENT (0.3%)
USA Waste Services, Incorporated* 13,000 641,875
--------------
641,875
TOTAL COMMON STOCK (IDENTIFIED COST 209,886,938
$181,590,581) --------------
<CAPTION>
INTEREST MATURITY PRINCIPAL
RATE DATE AMOUNT
<S> <C> <C> <C> <C>
SHORT-TERM INVESTMENTS (2.0%)
Fifth Third Bank Repurchase Agreement
(collateralized by 4,371,000 5.450% 07/01/98 $4,389,406 4,389,406
U.S. Treasury Notes, 7.50%, 10/31/99, -------------
market value $4,477,543)
TOTAL SHORT-TERM INVESTMENTS 4,389,406
(IDENTIFIED COST $4,389,406) -------------
TOTAL INVESTMENTS (100.0%) (IDENTIFIED COST
$185,979,987)(1) $ 214,276,344
-------------
-------------
</TABLE>
* Non-income producing security.
(1) See Note 5 for important tax information.
- --------------------------------------------------------------------------------
The notes are an integral part of the financial statements
-19-
<PAGE>
<TABLE>
<CAPTION>
ACCESSOR FUNDS, INC.
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
DESCRIPTION SHARES VALUE
<S> <C> <C>
COMMON STOCK (94.1%)
BELGIUM (0.6%)
Barco NV 3,700 $ 1,034,130
--------------
1,034,130
DENMARK (1.3%)
Tele Danmark A/S 'B'* 25,000 2,399,297
--------------
2,399,297
FINLAND (4.5%)
Enso Oyj R 220,000 2,377,844
Nokia Corporation 49,600 3,599,100
Raision Tehtaat 120,500 2,174,343
--------------
8,151,287
FRANCE (11.3%)
Alcatel Alsthom 10,000 2,036,047
Axa Uap 23,100 2,598,069
Banque Nationale de Paris 25,000 2,042,663
Bouygues 9,000 1,634,461
Cap Gemini 17,700 2,781,164
Casino Guichard Perrachon 25,000 1,996,352
Dessault Systemes 30,900 1,456,576
Groupe Danone Sponsored ADR 46,400 2,552,000
Synthelabo 8,900 1,501,481
Total Sa-B 14,900 1,937,040
--------------
20,535,853
GERMANY (11.2%)
Adidas 14,000 2,419,899
Bayer Motoren Werke 2,280 2,300,167
Bayer Motoren Werke New* 189 187,949
Deutsche Bank AG 27,000 2,286,356
Deutsche Lufthansa 97,200 2,439,378
Henkel Kgaa 20,000 1,988,882
Mannesmann AG 44,000 4,463,295
SAP AG 3,100 1,880,574
Volkswagen AG 2,390 2,297,270
--------------
20,263,770
</TABLE>
- -------------------------------------------------------------------------------
See notes to financial statements
-20-
<PAGE>
<TABLE>
<CAPTION>
ACCESSOR FUNDS, INC.
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONTINUED)
DESCRIPTION SHARES VALUE
<S> <C> <C>
GREAT BRITAIN (20.0%)
Amvescap PLC 263,200 $ 2,569,026
Amvescap PLC ADR 17,600 864,600
Bank Of Ireland 78,391 1,606,174
British Energy PLC 311,900 2,726,926
British Petroleum PLC 122,900 1,792,215
CMG PLC 56,648 1,798,664
Colt Telecom Group PLC 54,100 2,193,463
Glaxo Holdings PLC 52,700 1,581,862
Hays PLC 188,800 3,165,882
Misys Systems PLC 42,102 2,391,920
Orange PLC 306,500 3,247,364
Pearson PLC 27,835 509,941
Stagecoach Holdings 137,100 2,916,583
Standard Chartered PLC 1,772 20,134
Unilever PLC 186,400 1,984,236
Viridian Group PLC 170,640 1,600,088
Vodafone Group PLC 342,600 4,347,237
Zeneca Group PLC 21,500 922,648
--------------
36,238,963
HONG KONG (0.7%)
HSBC Holdings 54,500 1,332,858
--------------
1,332,858
HUNGARY (0.7%)
Magyar Tavkozlesi* 33,750 993,516
Matav 20,000 116,098
--------------
1,109,614
IRELAND (0.4%)
Bank Of Ireland 37,393 764,093
--------------
764,093
ISRAEL (0.5%)
Formula Systems* 23,200 811,498
--------------
811,498
ITALY (3.8%)
Banco Di Roma 859,500 1,789,063
Credito Italiano SPA 305,300 1,598,164
Luxottica Group ADR 45,000 697,500
Telecom Italia SPA 173,000 1,273,497
Telecom Italia Mobile SPA 251,600 1,538,574
--------------
6,896,798
</TABLE>
- -------------------------------------------------------------------------------
See notes to financial statements
-21-
<PAGE>
<TABLE>
<CAPTION>
ACCESSOR FUNDS, INC.
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONTINUED)
DESCRIPTION SHARES VALUE
<S> <C> <C>
JAPAN (16.6%)
Aiwa Company 62,100 $ 1,946,428
Bridgestone 78,000 1,843,427
Fuji Heavy Industries Limited 375,000 1,856,288
Fuji Soft ABC, Incorporated 39,000 1,326,368
Honda Motor Company 44,000 1,566,163
Kao Corporation 92,000 1,418,597
Mabuchi Motor 29,900 1,895,882
Mitsui High-Tec Incorporated 36,200 855,539
Nichiei Company Limited 23,340 1,587,560
Nintendo Company 14,000 1,296,249
Nippon Telephone & Telegraph 200 1,657,239
Olympus Optical Company 134,000 1,164,420
Orix Corporation 26,200 1,768,880
Ryohin Keikaku Company Limited 14,800 1,418,308
Shohkoh Fund & Company Limited 5,000 1,228,519
Sony Chemicals 81,000 1,704,219
Sony Corporation 33,100 2,850,056
Sony Music Entertainment 30,600 1,298,656
Sumitomo Special Metals 66,000 1,402,889
--------------
30,085,687
KOREA, REPUBLIC OF (0.0%)
SK Telecom Company Limited ADR 433 2,406
--------------
2,406
MEXICO (1.2%)
Corporacion Interamericana De Entretenimiento SA* 496,422 1,403,190
Groupo Televisa SA de GDR 19,900 748,738
--------------
2,151,928
NETHERLANDS (4.3%)
Akzo NV 8,000 1,778,370
CMG PLC 12,600 388,365
Ing Groep NV 41,500 2,717,403
KLM - Konin Luchtvaart Mij NV 32,797 1,331,729
OCE Van Der NV 252 10,728
Philips Electronics 17,700 1,487,891
--------------
7,714,486
</TABLE>
- -------------------------------------------------------------------------------
See notes to financial statements
-22-
<PAGE>
<TABLE>
<CAPTION>
ACCESSOR FUNDS, INC.
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONTINUED)
DESCRIPTION SHARES VALUE
<S> <C> <C>
NORWAY (2.0%)
A/S Tomra Systems 42,000 $ 1,258,872
Petroleum Geo-Services Sponsored ADR* 79,000 2,409,500
-------------
3,668,372
PORTUGAL (1.55%)
Banco Portugal De Invest 18,700 603,458
Cimpor Cimentos De Portu 16,700 586,742
Jeronimo Martins 18,500 888,745
Telecel Comunicasoes Pessoais SA* 4,400 781,290
-------------
2,860,235
SINGAPORE (1.5%)
Dairy Farm International Holdings 982,000 1,050,740
Natsteel Electronic 450,000 753,782
Singapore Technology Engineering* 1,207,550 850,548
-------------
2,655,070
SOUTH AFRICA (0.6%)
Dimension Data Holdings Company 186,108 1,011,111
-------------
1,011,111
SPAIN (3.9%)
Argentaria Corp 35,654 801,161
Banco Bilbao De Vizcaya 30,100 1,547,371
Grupo Acciona SA 4,500 1,072,310
Tabacalera Series 'A' 125,800 2,580,260
Telefonica SA ADR 7,854 1,092,197
-------------
7,093,299
SWEDEN (1.8%)
Electrolux AB Common 102,000 1,752,237
Nordbanken Holding Company* 203,500 1,492,769
-------------
3,245,006
SWITZERLAND (5.8%)
Baer Holdings AG 220 688,220
Credit Suisse Group 9,400 2,091,559
Nestle SA 1,250 2,675,020
Schweizerische Rueckversicherungs-Gesellschaft 1,050 2,655,440
UBS AG 6,500 2,416,912
-------------
10,527,151
TOTAL COMMON STOCK (IDENTIFIED COST $137,320,782) 170,552,912
-------------
</TABLE>
- -------------------------------------------------------------------------------
See notes to financial statements
-23-
<PAGE>
ACCESSOR FUNDS, INC.
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONCLUDED)
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
SHORT-TERM INVESTMENTS AND CASH EQUIVALENTS (5.9%)
COMMERCIAL PAPER
Merrill Lynch Commercial Paper(1) 6.10% 07/01/98 $ 8,790,000 $ 8,790,000
Cargill Commercial Paper(1) 6.10% 07/01/98 1,961,000 1,961,000
---------------
TOTAL SHORT-TERM INVESTMENTS AND CASH EQUIVALENTS 10,751,000
(IDENTIFIED COST $10,751,000) ---------------
TOTAL INVESTMENTS (100.0%) (IDENTIFIED COST $146,430,882)(2) $ 181,303,912
---------------
---------------
</TABLE>
* Non-income producing security.
(1) Yield at time of purchase.
(2) See Note 5 for important tax information.
FORWARD CURRENCY CONTRACTS
<TABLE>
<CAPTION>
UNREALIZED
CURRENCY EXCHANGE CONTRACT APPRECIATION/ DELIVERY
RATE(3) VALUE (DEPRECIATION) DATE
<S> <C> <C> <C> <C>
LIABILITIES:
Netherland Guilder (Buy) 2.0367 $ 1,291,291 $ 1,573 7/1/98
Netherland Guilder (Buy) 2.0347 1,256,008 - 7/2/98
Swiss Francs (Buy) 1.5101 690,442 (1,784) 7/2/98
Italian Lira (Buy) 7.9100 219,022 - 7/1/98
Japanese Yen (Buy) 141.2500 315,160 5,598 7/1/98
--------
$ 5,387
</TABLE>
(3) Contract Rate.
- --------------------------------------------------------------------------------
The notes are an integral part of the financial statements
-24-
<PAGE>
ACCESSOR FUNDS, INC.
INTERMEDIATE FIXED-INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (1.3%)
Collateralized Mortgage Securities Corporation 9.450% 02/01/17 $ 465,996 $ 502,966
Merrill Lynch Mortgage Investments, Inc., Series 1992-D 8.150% 07/15/17 100,000 103,822
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS 606,788
(IDENTIFIED COST $611,964) ------------
ASSET BACKED SECURITIES (20.4%)
Bridgestone/Firestone Master Trust, Series 1996-1 6.170% 07/01/03 1,000,000 1,005,370
CPS 1997-4 A1 6.070% 03/15/03 785,568 787,045
Captiva CBO 6.860% 11/30/09 1,200,000 1,216,428
Carco Automotive 6.689% 08/15/04 1,000,000 1,015,420
Chemical Master Credit Card Trust, Series 1996-2 5.980% 09/15/08 2,000,000 2,014,080
Ford Credit Auto Loan Master Trust, Series 1995-1 6.500% 08/15/02 500,000 506,835
Ford Credit Grantor Trust, Series 1995-A 5.900% 05/15/00 43,084 43,089
Olympic Auto Receivables Trust, Series 1996-B 6.500% 12/15/00 511,431 512,480
The Money Store Home Equity Trust, Series 1997-B 6.420% 11/15/09 416,346 415,947
ONYX 1996-2 A 6.400% 10/15/01 680,580 683,915
Standard Credit Card Master Trust, Series 1995-8A 6.700% 09/07/02 300,000 305,412
World Financial Network Credit Card Master Trust, Ser 1996-A 6.700% 02/15/04 1,000,000 1,025,160
------------
TOTAL ASSET BACKED SECURITIES (IDENTIFIED COST $9,265,891) 9,531,181
------------
CORPORATE BONDS (52.5%)
ELECTRIC UTILITIES (5.4%)
Entergy Corporation 6.450% 04/01/08 1,000,000 1,003,128
National Rural Utilities 6.750% 09/01/01 1,000,000 1,021,669
Pacific Gas & Electric 6.250% 08/01/03 500,000 504,643
------------
2,529,440
FINANCIAL (22.5%)
ABN Amro Bank 7.300% 12/01/26 250,000 257,876
Aetna 7.125% 08/15/06 1,000,000 1,041,973
Bank One 7.625% 10/15/26 500,000 559,143
Bank America 7.125% 03/01/09 500,000 530,363
Bear Stearns 6.125% 02/01/03 500,000 499,623
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-25-
<PAGE>
ACCESSOR FUNDS, INC.
INTERMEDIATE FIXED-INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONTINUED)
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
FINANCIAL (CONTINUED)
Citicorp 7.000% 01/02/04 $ 500,000 $ 516,766
Ford Motor Credit Corporation 6.125% 01/09/06 1,000,000 995,736
General Motors Acceptance Corporation 6.625% 10/15/05 1,000,000 1,029,076
JP Morgan & Company Incorporated 7.625% 09/15/04 500,000 537,552
Morgan Stanley Group Incorporated 7.000% 10/01/13 738,000 781,651
Midland Bank PLC 6.120% 09/29/49 200,000 169,690
MIC Financing Trust 8.375% 02/01/27 1,000,000 1,066,720
Nations Bank Corporation 8.570% 11/15/24 1,000,000 1,250,363
Sears Roebuck Acceptance Corporation 6.000% 03/20/03 600,000 598,804
Standard Fed Bancorporation 7.750% 07/17/06 600,000 654,654
------------
10,489,990
INDUSTRIAL (21.1%)
Archer Daniels Midland Company 6.250% 05/15/03 1,000,000 1,009,627
Coke Enterprises 6.950% 11/15/26 500,000 524,147
Deere & Company 8.950% 06/15/19 500,000 615,840
EI Dupont de Nemours & Company 8.800% 01/25/01 500,000 535,536
Eli Lilly & Company 7.125% 06/01/25 592,000 650,986
General Electric Company 7.260% 04/29/02 500,000 524,061
International Paper 7.500% 05/15/04 500,000 532,099
Jefferson Pilot 8.140% 01/15/46 1,000,000 1,086,908
Kaiser Found Foundation Hospital 8.750% 08/11/03 1,200,000 1,346,239
McDonald Douglas Corporation 6.875% 11/01/06 500,000 525,671
Sony Corporation 6.125% 03/04/03 500,000 501,058
Wal Mart Stores 6.500% 06/01/03 500,000 511,616
Warner Lambert Corporation 6.000% 01/15/08 1,000,000 998,620
Weyerhauser Company 7.125% 07/15/23 500,000 531,417
------------
9,893,825
TELECOMMUNICATIONS (3.5%)
GTE North Incorporated 6.375% 02/15/10 500,000 503,126
Nynex Capital Funding 8.750% 12/01/04 1,000,000 1,140,910
------------
1,644,036
TOTAL CORPORATE BONDS (IDENTIFIED COST $24,143,721) 24,557,291
------------
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-26-
<PAGE>
ACCESSOR FUNDS, INC.
INTERMEDIATE FIXED-INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONCLUDED)
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES (22.1%)
U.S. TREASURY (20.1%)
United States Treasury Note 6.375% 03/31/01 $ 2,200,000 $ 2,246,063
United States Treasury Bond 6.250% 02/15/03 2,500,000 2,572,657
United States Treasury Bond 7.250% 05/15/04 1,000,000 1,085,000
United States Treasury Note 6.125% 08/15/07 250,000 260,235
United States Treasury Note 5.500% 02/15/08 1,000,000 999,688
United States Treasury Bond 8.750% 08/15/20 500,000 687,657
United States Treasury Bond 6.500% 11/15/26 1,000,000 1,110,625
United States Treasury Bond 6.125% 11/15/27 400,000 428,625
------------
9,390,550
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) (1.0%)
FHLMC 5.780% 10/22/03 500,000 491,595
------------
491,595
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (1.0%)
FNMA 6.170% 12/02/03 500,000 496,377
------------
496,377
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES
(IDENTIFIED COST $10,023,710) 10,378,522
------------
SHORT-TERM INVESTMENTS AND CASH EQUIVALENTS (3.7%)
Fifth Third Bank Repurchase Agreement (collateralized by 5.450% 07/01/98 1,712,327 1,712,327
1,706,000 US Treasury Note, 7.50%, 10/31/99, ------------
market value $1,747,583)
TOTAL SHORT-TERM INVESTMENTS AND CASH EQUIVALENTS
(IDENTIFIED COST $1,712,327) 1,712,327
------------
TOTAL INVESTMENTS (100.0%) (IDENTIFIED COST $45,757,613)(1) $ 46,786,109
------------
------------
</TABLE>
(1) See Note 5 for important tax information.
- --------------------------------------------------------------------------------
The notes are an integral part of the financial statements
-27-
<PAGE>
ACCESSOR FUNDS, INC.
SHORT-INTERMEDIATE FIXED-INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
CORPORATE BONDS (21.9%)
ELECTRIC UTILITIES (3.3%)
Baltimore Gas & Electric Company 8.375% 08/15/01 $ 300,000 $ 319,942
Consolidated Edison Corporation 5.700% 10/01/98 225,000 224,864
Iowa Electric 8.625% 05/15/01 395,000 422,295
Pacificorp 6.310% 07/28/03 550,000 554,303
------------
1,521,404
FINANCIAL (12.4%)
Associates Corporation 6.750% 08/01/01 1,130,000 1,154,628
Bank of Boston 6.380% 08/11/00 245,000 246,320
Bear Stearns 6.750% 04/15/03 500,000 512,215
Chase Manhattan Corporation 8.625% 05/01/02 400,000 434,667
Chrysler Financial Corporation 6.110% 07/28/99 310,000 310,227
Dean Witter Discover & Company 6.875% 03/01/03 400,000 412,448
Ford Motor Credit Corporation 6.250% 11/08/00 650,000 654,605
Grand Metro Investment 6.500% 09/15/99 500,000 503,016
IBM Credit Corporation 5.875% 08/25/99 300,000 300,008
Sears Roebuck Acceptance Corporation 6.630% 07/09/02 542,000 551,499
Smith Barney Shearson 5.625% 11/15/98 350,000 349,530
Texas National Bank 9.500% 06/01/04 285,000 331,625
------------
5,760,788
INDUSTRIAL (5.7%)
Anheuser Busch Companies 8.750% 12/01/99 270,000 279,627
Baxter International Incorporated 9.250% 12/15/99 200,000 208,558
EI Dupont de Nemours & Company 8.800% 01/25/01 1,000,000 1,071,072
Englehard Corporation 6.500% 09/01/00 445,000 450,870
JC Penney Company 7.375% 06/15/04 500,000 526,982
Southern California Education 5.875% 01/15/01 90,000 89,558
------------
2,626,667
OIL (0.5%)
Shell Oil Corporation 6.625% 07/01/99 250,000 251,460
------------
251,460
TOTAL CORPORATE BONDS (IDENTIFIED COST $10,171,735) 10,160,319
------------
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-28-
<PAGE>
ACCESSOR FUNDS, INC.
SHORT-INTERMEDIATE FIXED-INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONTINUED)
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
FOREIGN GOVERNMENT ISSUES (0.7%)
YANKEE (0.7%)
Province of Manitoba 9.500% 10/01/00 $ 300,000 $ 322,233
------------
TOTAL FOREIGN GOVERNMENT ISSUES (IDENTIFIED COST $354,480) 322,233
------------
U.S. GOVERNMENT AND AGENCY SECURITIES (76.6%)
U.S. TREASURY (73.8%)
UNITED STATES TREASURY NOTE 6.750% 05/31/99 1,000,000 1,010,625
UNITED STATES TREASURY NOTE 5.500% 06/30/99 2,000,000 1,998,750
UNITED STATES TREASURY NOTE 6.875% 07/31/99 700,000 709,625
UNITED STATES TREASURY NOTE 8.000% 08/15/99 1,970,000 2,022,328
UNITED STATES TREASURY NOTE 6.000% 08/15/99 1,150,000 1,155,391
UNITED STATES TREASURY NOTE 7.125% 09/30/99 4,000,000 4,075,000
UNITED STATES TREASURY NOTE 6.000% 10/15/99 565,000 568,178
UNITED STATES TREASURY NOTE 5.875% 11/15/99 565,000 567,472
UNITED STATES TREASURY NOTE 7.750% 01/31/00 700,000 722,969
UNITED STATES TREASURY NOTE 7.125% 02/29/00 3,000,000 3,075,000
UNITED STATES TREASURY NOTE 5.750% 10/31/00 1,590,000 1,597,950
UNITED STATES TREASURY NOTE 5.625% 11/30/00 1,000,000 1,002,188
UNITED STATES TREASURY NOTE 5.625% 02/28/01 500,000 501,250
UNITED STATES TREASURY NOTE 6.375% 03/31/01 1,285,000 1,311,905
UNITED STATES TREASURY NOTE 6.250% 04/30/01 1,000,000 1,018,438
UNITED STATES TREASURY NOTE 6.500% 05/31/01 3,075,000 3,152,837
UNITED STATES TREASURY NOTE 6.625% 06/30/01 1,000,000 1,029,063
UNITED STATES TREASURY NOTE 6.500% 08/31/01 500,000 513,438
UNITED STATES TREASURY NOTE 6.250% 10/31/01 800,000 816,500
UNITED STATES TREASURY NOTE 7.500% 11/15/01 1,110,000 1,175,560
UNITED STATES TREASURY NOTE 6.250% 01/31/02 1,400,000 1,431,063
UNITED STATES TREASURY NOTE 6.250% 02/28/02 1,300,000 1,329,657
UNITED STATES TREASURY NOTE 6.625% 03/31/02 40,000 41,425
UNITED STATES TREASURY NOTE 6.500% 05/31/02 430,000 444,244
UNITED STATES TREASURY NOTE 6.250% 08/31/02 400,000 410,375
UNITED STATES TREASURY NOTE 5.625% 12/31/02 500,000 502,032
UNITED STATES TREASURY BOND 6.250% 02/15/03 265,000 272,702
UNITED STATES TREASURY BOND 5.750% 08/15/03 1,700,000 1,718,062
------------
34,174,027
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-29-
<PAGE>
ACCESSOR FUNDS, INC.
SHORT-INTERMEDIATE FIXED-INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONCLUDED)
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (0.5%)
GNMA Pool 353193 7.000% 02/15/08 $ 231,712 $ 237,277
------------
237,277
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) (0.8%)
FHLMC Pool E30447 8.500% 02/01/06 6,793 7,067
FHLMC Pool E31817 8.500% 08/01/06 112,132 116,660
FHLMC Pool E39980 8.500% 08/01/06 6,065 6,310
FHLMC Pool E43681 7.500% 01/01/08 208,916 214,924
------------
344,961
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (1.5%)
FNMA Pool 185550 7.000% 11/01/07 71,895 73,217
FNMA Pool 050930 7.000% 12/01/08 195,456 199,043
FNMA Pool 349371 7.000% 07/01/11 421,631 429,292
------------
701,552
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES
(IDENTIFIED COST $35,274,417) 35,457,817
------------
SHORT-TERM INVESTMENTS AND CASH EQUIVALENTS (0.8%)
Fifth Third Bank Repurchase Agreement (collateralized by 5.450% 07/01/98 374,180 374,180
373,000 US Treasury Note, 7.50%, 10/31/99, ------------
market value $382,091)
TOTAL SHORT-TERM INVESTMENTS AND CASH EQUIVALENTS
(IDENTIFIED COST $374,180) 374,180
------------
TOTAL INVESTMENTS (100.0%) (IDENTIFIED COST $46,174,812)(1) $ 46,314,549
------------
------------
</TABLE>
(1) See Note 5 for important tax information.
- --------------------------------------------------------------------------------
The notes are an integral part of the financial statements
-30-
<PAGE>
ACCESSOR FUNDS, INC.
MORTGAGE SECURITIES PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
BONDS (18.0%)
ASSET BACKED (5.5%)
Chase Manhattan Grantor Trust - CMGT 1996-B 6.610% 09/16/02 $ 369,643 $ 372,504
Chevy Chase Auto Receivables Trust - 1996-2 5.900% 07/15/03 464,024 463,787
Green Tree Home Improvement Loan Trust-GTHIL 1994-D(1) 9.050% 01/15/15 1,000,000 1,068,750
Green Tree Financial Corporation - 1996-10 7.300% 11/15/28 800,000 847,879
Green Tree Financial Corporation - 1997-1 7.290% 03/02/28 800,000 847,388
Merit Securities Corporation 11 CL 1-A1 7.430% 09/01/22 1,252,748 1,296,209
Norwest Integrated Structure 1998-1 7.000% 05/25/28 2,453,677 2,470,546
Structured Asset Securities Corporation 1998-C2(2) 6.140% 01/25/13 699,776 659,024
------------
8,026,087
PROJECT LOANS (12.5%)
Arbors of Little Rock 7.450% 01/01/39 1,520,368 1,592,134
Chapel Hill Assisted Living 7.750% 06/01/37 515,000 517,894
CLC Excelsior II Apartments 8.040% 02/01/39 1,000,000 1,010,890
Country Club Village 7.660% 10/25/33 1,675,000 1,782,431
Creekside Square Apartments 7.875% 07/01/37 999,362 1,070,397
Desert Mirage Apartments 7.500% 11/25/37 1,500,000 1,509,180
Enclave at Quail Crossing 7.750% 08/31/38 1,000,000 1,005,620
Enclave at Stonebrook 7.500% 08/29/37 1,028,984 1,084,543
Evergreen Towers 7.250% 01/01/39 1,004,700 1,041,277
Hillsboro Bay Club 7.950% 03/01/37 89,013 98,207
Orchard Park Inn 7.840% 03/01/28 1,019,310 1,092,560
Poplar Towers Apartments 7.750% 06/01/37 400,000 415,468
Prairie District Lofts 7.410% 12/01/38 945,000 983,493
River Bluff Apartments 7.750% 06/01/37 260,000 261,462
Rosewood 8.000% 07/01/37 1,001,967 1,079,149
Scottsdale Links 7.650% 07/01/38 81,658 88,153
Sunshine Gardens West 7.470% 11/01/38 1,260,398 1,327,329
Triangle Point 7.750% 09/30/38 983,331 1,045,648
Villages at Clear Springs 7.625% 09/30/38 1,095,600 1,161,833
------------
18,167,668
TOTAL BONDS (IDENTIFIED COST $25,349,734) 26,193,755
------------
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-31-
<PAGE>
ACCESSOR FUNDS, INC.
MORTGAGE SECURITIES PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONTINUED)
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (13.1%)
Community Program Loan Trust - 1987-A A4 4.500% 10/01/18 $ 1,165 $ 1,069
DLJ Mortgage Acceptance 1998-2 CL A1 6.750% 06/19/28 1,598,528 1,592,783
GMAC Mortgage Securities Incorporated 8.950% 08/20/17 80,069 86,491
GS Mortgage Securities Corporation 1998-1 CL A 8.000% 08/19/19 1,188,270 1,242,856
GS Mortgage Securities Corporation 1998-2 CL A 7.750% 11/01/23 1,100,000 1,145,719
Merit Securities Corporation 11 CL 1-A1 6.580% 07/28/22 1,000,000 1,000,000
Residential Asset Securitization Trust 1998-A8 6.750% 06/25/28 1,750,000 1,754,375
Residential Asset Securitization Trust 1998-A5 6.750% 05/25/28 2,426,219 2,435,487
Residential Asset Securitization Trust 1998-A8 6.750% 03/01/28 1,882,919 1,885,272
Residential Accredit Loans Incorporated 1997-QS10 7.250% 10/25/27 1,588,034 1,602,771
Residential Accredit Loans Incorporated 1998-QS4 6.500% 03/25/28 1,211,260 1,210,400
Residential Accredit Loans Incorporated 1998-QA5 6.750% 04/25/28 1,744,589 1,750,556
Rural Housing Trust 1987-1 - Rural 2C 6.830% 04/01/26 817,502 828,729
Ryland Mortgage Securities Corporation 1994-7A A2 7.000% 08/25/25 1,168,051 1,186,757
Union Planters Mortgage Finance Corporation 1998-1 6.350% 01/25/28 1,400,000 1,403,063
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(IDENTIFIED COST $19,051,200) 19,126,328
U.S. GOVERNMENT AND AGENCY BONDS (68.8%)
U.S. TREASURY(13.4%)
United States Treasury Note 5.375% 01/31/00 200,000 199,500
United States Treasury Note 6.375% 05/15/00 75,000 76,125
United States Treasury Note 6.375% 03/31/01 700,000 714,657
United States Treasury Note 6.250% 02/28/02 1,235,000 1,263,174
United States Treasury Note 5.750% 10/31/02 4,200,000 4,234,125
United States Treasury Note 5.750% 11/30/02 35,000 35,284
United States Treasury Note 5.500% 05/31/03 6,700,000 6,700,000
United States Treasury Bond 6.250% 08/15/23 4,220,000 4,516,721
United States Treasury Bond 6.125% 11/15/27 400,000 428,625
United States Treasury Note (CPI) 3.625% 04/15/28 1,306,110 1,291,009
------------
19,459,220
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-32-
<PAGE>
ACCESSOR FUNDS, INC.
MORTGAGE SECURITIES PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONTINUED)
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (16.3%)
GNMA Pool 000571 8.200% 05/15/13 $ 44,434 $ 45,845
GNMA Pool 000572 8.200% 06/15/12 31,041 32,018
GNMA Pool 080094 6.000% 07/20/27 1,851,000 1,871,417
GNMA Pool 171468 8.000% 08/15/16 149,756 157,538
GNMA Pool 175724 8.000% 08/15/16 139,982 147,256
GNMA Pool 178457 8.000% 03/15/17 99,500 104,632
GNMA Pool 206767 8.000% 04/15/17 85,344 89,746
GNMA Pool 317527 8.000% 08/15/22 377,952 393,368
GNMA Pool 337121 6.500% 12/15/23 229,008 228,436
GNMA Pool 344185 7.500% 12/15/22 1,259,341 1,293,583
GNMA Pool 346900 6.500% 11/15/23 454,670 453,533
GNMA Pool 352000 6.500% 12/15/23 1,271,314 1,268,136
GNMA Pool 352001 6.500% 12/15/23 421,741 422,508
GNMA Pool 353847 7.500% 09/15/27 929,394 954,664
GNMA Pool 354711 6.500% 12/15/23 476,812 475,620
GNMA Pool 354721 6.500% 12/15/23 255,258 254,620
GNMA Pool 355067 6.500% 01/15/24 852,868 850,736
GNMA Pool 355616 7.500% 05/15/23 940,948 968,659
GNMA Pool 355829 6.500% 11/15/23 250,390 249,764
GNMA Pool 364402 6.500% 12/15/23 270,525 269,848
GNMA Pool 365974 6.500% 11/15/23 235,359 234,771
GNMA Pool 366252 6.500% 03/15/24 74,465 74,278
GNMA Pool 369258 6.500% 10/15/23 248,449 247,828
GNMA Pool 369280 6.500% 01/15/24 756,325 754,434
GNMA Pool 370962 6.500% 12/15/23 261,267 260,614
GNMA Pool 371250 6.500% 01/15/24 46,247 46,131
GNMA Pool 371611 6.500% 01/15/24 77,783 77,588
GNMA Pool 372083 6.500% 04/15/24 792,677 790,696
GNMA Pool 374886 6.500% 12/15/23 234,007 233,422
GNMA Pool 374888 6.500% 01/15/24 52,032 51,902
GNMA Pool 375305 8.000% 09/15/25 51,907 53,829
GNMA Pool 380252 6.500% 03/15/24 185,733 185,268
GNMA Pool 382387 6.500% 01/15/24 59,047 58,900
GNMA Pool 384262 6.500% 02/15/24 496,483 495,242
GNMA Pool 385289 6.500% 02/15/24 214,352 213,816
GNMA Pool 385638 6.500% 04/15/24 48,616 48,494
GNMA Pool 386952 6.500% 04/15/24 464,278 463,117
GNMA Pool 387022 8.000% 05/15/25 17,387 18,031
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-33-
<PAGE>
ACCESSOR FUNDS, INC.
MORTGAGE SECURITIES PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONTINUED)
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (CONTINUED)
GNMA Pool 390326 8.000% 02/15/25 $ 51,497 $ 53,403
GNMA Pool 397911 8.000% 09/15/25 190,382 197,430
GNMA Pool 404645 8.000% 07/15/25 19,518 20,240
GNMA Pool 405188 8.000% 11/15/25 12,371 12,829
GNMA Pool 405528 8.000% 11/15/25 576,851 598,206
GNMA Pool 413357 8.000% 05/15/25 31,418 32,581
GNMA Pool 413462 8.000% 08/15/25 25,813 26,769
GNMA Pool 415323 8.000% 07/15/25 653,882 678,089
GNMA Pool 416844 8.000% 08/15/25 51,262 53,160
GNMA Pool 427768 7.500% 11/15/27 117,509 120,704
GNMA Pool 428537 7.500% 08/15/26 169,281 173,989
GNMA Pool 430230 7.500% 09/15/27 961,738 987,888
GNMA Pool 448687 7.500% 09/15/27 879,179 903,084
GNMA Pool 449183 7.500% 10/15/27 1,009,384 1,036,829
GNMA Pool 450585 7.500% 08/15/27 961,426 987,567
GNMA Pool 451843 7.500% 06/15/27 518,066 532,421
GNMA Pool 454969 7.500% 08/15/27 978,811 1,005,425
GNMA Pool 457485 7.500% 11/15/27 459,067 471,549
GNMA Pool 459094 7.500% 10/15/27 492,140 505,521
GNMA Pool 780487 7.250% 12/15/26 464,560 475,533
------------
23,713,505
FEDERAL HOUSING AUTHORITY (FHA) (0.1%)
FHA - Blair Project 10.875% 08/01/28 153,832 153,832
------------
153,832
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC)(21.4%)
FHLMC Pool 1563 8.750% 08/15/08 468,111 471,550
FHLMC Pool 2061 PH 6.000% 06/30/98 1,300,000 1,300,813
FHLMC Pool 230105 8.750% 12/01/14 22,746 23,806
FHLMC Pool A00892 9.000% 09/01/18 354,688 378,814
FHLMC Pool C00262 7.000% 10/01/23 2,571,414 2,614,665
FHLMC Pool D54041 7.000% 06/01/24 633,203 643,435
FHLMC Pool D67991 7.000% 02/01/29 1,614,964 1,645,842
FHLMC Pool D71143 7.000% 05/01/26 453,039 460,360
FHLMC Pool E00465 6.500% 05/01/13 136,593 137,564
FHLMC Pool E00478 7.500% 03/01/12 479,588 493,218
FHLMC Pool E00523 6.500% 12/15/12 3,606,329 3,630,671
FHLMC Pool E00542 6.500% 04/01/13 97,655 98,294
FHLMC Pool E00543 6.000% 04/01/13 11,028,891 10,920,808
FHLMC Pool E20190 6.500% 08/01/10 369,372 372,142
FHLMC Pool E20193 6.500% 09/01/10 372,161 374,952
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-34-
<PAGE>
ACCESSOR FUNDS, INC.
MORTGAGE SECURITIES PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONTINUED)
<TABLE>
<CAPTION>
DESCRIPTION INTEREST MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC)(CONTINUED)
<S> <C> <C> <C> <C>
FHLMC Pool E61583 6.500% 10/01/10 $378,458 $381,296
FHLMC Pool E61633 6.500% 11/01/10 344,250 346,832
FHLMC Pool E61643 6.500% 10/01/10 373,597 376,399
FHLMC Pool E62414 6.500% 01/01/11 325,677 328,119
FHLMC Pool E62838 6.500% 01/01/11 139,624 140,671
FHLMC Pool E63081 6.500% 02/01/11 351,800 354,438
FHLMC Pool E63833 6.500% 04/01/11 320,824 323,105
FHLMC Pool E63846 6.500% 04/01/11 291,446 293,632
FHLMC Pool E63924 6.500% 04/01/11 306,335 308,633
FHLMC Pool E67224 7.000% 07/01/12 269,985 274,888
FHLMC Pool E67293 7.000% 07/01/12 269,601 274,497
FHLMC Pool E67294 7.000% 07/01/12 404,671 412,020
FHLMC Pool E69095 6.500% 02/01/13 293,699 295,681
FHLMC Pool E69576 6.500% 02/01/13 37,497 37,750
FHLMC Pool E69437 6.500% 03/01/13 440,546 443,427
FHLMC Pool E70056 6.500% 05/01/13 986,796 993,249
FHLMC Pool E70508 6.500% 05/01/13 1,948,877 1,962,032
-----------
31,113,603
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA)(17.6%)
FNMA Pool 93-102J 6.800% 06/25/23 2,000,000 2,062,088
FNMA Pool 303751 8.000% 10/01/09 345,851 359,253
FNMA Pool 303752 8.000% 05/01/22 216,119 225,040
FNMA Pool 313877 6.500% 12/01/27 638,455 636,087
FNMA Pool 323057 6.500% 03/01/13 1,666,007 1,675,537
FNMA Pool 324518 6.500% 02/01/27 44,788 44,622
FNMA Pool 370110 6.500% 01/01/27 98,960 98,739
FNMA Pool 378085 6.500% 03/01/13 978,786 984,385
FNMA Pool 392410 6.500% 02/01/13 1,485,001 1,493,495
FNMA Pool 395667 6.500% 08/01/27 50,078 49,892
FNMA Pool 395811 7.000% 11/01/27 1,402,202 1,422,408
FNMA Pool 397372 6.500% 08/01/27 651,279 648,862
FNMA Pool 398114 6.500% 12/01/27 528,477 526,516
FNMA Pool 399007 6.500% 09/01/27 486,302 484,498
FNMA Pool 399065 6.500% 10/01/27 457,926 456,227
FNMA Pool 403792 6.500% 11/01/27 323,009 321,810
FNMA Pool 405823 6.500% 12/01/27 676,276 673,767
FNMA Pool 407337 6.500% 12/01/27 1,488,046 1,482,525
FNMA Pool 407623 6.500% 12/01/27 646,513 644,114
FNMA Pool 409230 6.500% 01/01/28 706,309 703,689
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-35-
<PAGE>
ACCESSOR FUNDS, INC.
MORTGAGE SECURITIES PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONTINUED)
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION(FNMA)(CONTINUED)
FNMA Pool 409597 6.500% 01/01/28 $928,835 $924,841
FNMA Pool 411030 6.500% 04/01/13 42,919 43,165
FNMA Pool 414469 7.000% 03/01/28 495,272 502,233
FNMA Pool 415573 6.500% 02/01/28 151,170 150,520
FNMA Pool 417923 6.500% 03/01/13 897,286 902,230
FNMA Pool 418129 6.500% 04/01/28 982,290 978,066
FNMA Pool 418722 6.500% 04/01/13 74,373 74,799
FNMA Pool 418729 6.500% 04/01/13 679,625 683,369
FNMA Pool 419124 6.500% 04/01/13 24,766 24,902
FNMA Pool 419970 6.500% 04/01/13 30,043 30,208
FNMA Pool 419972 6.500% 04/01/28 982,927 978,700
FNMA Pool 420422 6.500% 04/01/13 124,066 124,750
FNMA Pool 420712 6.500% 05/01/28 988,946 984,693
FNMA Pool 420716 6.500% 05/01/28 988,923 984,671
FNMA Pool 421227 6.500% 05/01/28 247,265 246,347
FNMA Pool 421245 6.500% 03/01/13 963,461 968,972
FNMA Pool 422435 6.500% 04/01/28 494,068 491,944
FNMA Pool 423155 6.500% 04/01/13 171,035 171,977
FNMA Pool 426675 6.500% 05/01/13 24,825 24,962
FNMA Pool 426718 6.500% 05/01/13 46,202 46,457
FNMA Pool 426854 8.000% 11/01/10 1,227,991 1,285,111
--------------
25,616,471
TOTAL U.S. GOVERNMENT AND AGENCY BONDS 100,056,631
--------------
(IDENTIFIED COST $98,901,776)
SHORT-TERM INVESTMENTS AND CASH EQUIVALENTS (0.1%)
Fifth Third Bank Repurchase Agreement (collateralized by 5.450% 07/01/98 76,836 76,836
77,000 US Treasury Note, 7.50%, 10/31/99, market value $78,876) -------------
TOTAL SHORT-TERM INVESTMENTS AND CASH EQUIVALENTS
(IDENTIFIED COST $76,836) 76,836
--------------
(3)
TOTAL INVESTMENTS (100.0%) (IDENTIFIED Cost $143,379,546) $ 145,453,550
--------------
--------------
</TABLE>
(1) Security has been segregated with the custodian to cover margin requirements
for the open future contracts at June 30, 1998, detailed on the following
page.
(2) Current Yield.
(3) See Note 5 for important tax information.
- --------------------------------------------------------------------------------
See notes to financial statements
-36-
<PAGE>
ACCESSOR FUNDS, INC.
MORTGAGE SECURITIES PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONCLUDED)
<TABLE>
<CAPTION>
FORWARD COMMITMENTS
TBA SALE COMMITMENTS AT JUNE 30, 1998
(Proceeds receivable $13,906,467)
AGENCY PRINCIPAL DELIVERY COUPON RATE MARKET
AMOUNT DATE VALUE
<S> <C> <C> <C> <C>
FNMA $ 6,500,000 7/14/98 6.50% $ 6,471,563
FNMA 5,740,000 7/14/98 6.50% 5,913,971
FNMA 1,500,000 7/14/98 7.00% 1,521,082
------------
$ 13,906,616
------------
------------
<CAPTION>
TBA PURCHASE COMMITMENTS AT JUNE 30, 1998
(Proceeds payable $10,533,396)
AGENCY PRINCIPAL DELIVERY COUPON RATE MARKET
AMOUNT DATE VALUE
<S> <C> <C> <C> <C>
FHLMC $ 3,000,000 7/20/98 6.50% $ 3,019,674
FNMA 6,000,000 7/14/98 6.50% 5,973,708
FNMA 1,500,000 7/14/98 7.50% 1,538,427
------------
$ 10,531,809
------------
------------
See Note 2 for more information regarding forward committments.
OUTSTANDING FUTURES CONTRACTS
<CAPTION>
UNREALIZED
UNITS PER CURRENT APPRECIATION
TYPE EXPIRATION CONTRACT CONTRACT VALUE (DEPRECIATION)
<S> <C> <C> <C> <C> <C>
90 Day Eurodollar Future 03/21/99 31 1,000 $ (865,156) $ 677
5 Year Note Future 09/21/98 22 1,000 (2,413,125) (5,599)
10 Year Note Future 09/21/98 242 1,000 (27,550,188) (189,261)
30 Year Bond Future 09/21/98 7 2,500 4,952,063 (13,321)
---------
$(207,504)
---------
---------
</TABLE>
- --------------------------------------------------------------------------------
The notes are an integral part of the financial statements
-37-
<PAGE>
ACCESSOR FUNDS, INC.
U.S. GOVERNMENT MONEY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY BONDS (83.0%)
FEDERAL FARM CREDIT BANK (FFCB) (3.8%)
FFCB Discount Note 5.410% 09/25/98 $1,885,000 $1,860,638
----------
1,860,638
U.S. TREASURY BILLS (4.1%)
United States Treasury Bills 4.920% 08/09/98 2,000,000 1,990,160
----------
1,990,160
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) (8.2%)
FHLMC Discount Note 5.350% 08/03/98 2,000,000 1,990,192
FHLMC Discount Note 5.370% 09/30/98 2,000,000 1,972,852
----------
3,963,044
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (40.6%)
FNMA Discount Note 5.400% 09/14/98 2,000,000 1,977,500
FNMA Discount Note 5.230% 03/05/99 2,000,000 1,928,233
FNMA Discount Note 5.250% 08/20/98 3,000,000 2,978,125
FNMA Discount Note 5.340% 10/13/98 1,005,000 989,496
FNMA Discount Note 5.330% 11/02/98 2,000,000 1,963,282
FNMA Discount Note 5.340% 11/09/98 3,000,000 2,941,705
FNMA Discount Note 5.340% 12/24/98 2,000,000 1,947,787
FNMA Discount Note 5.390% 07/15/98 3,000,000 2,993,712
FNMA Discount Note 5.370% 07/22/98 2,000,000 1,993,735
----------
19,713,575
FEDERAL HOME LOAN BANK (FHLB) (26.4%)
FHLB Discount Note 5.380% 10/04/98 2,000,000 1,970,709
FHLB Discount Note 5.325% 11/18/98 2,000,000 1,958,583
FHLB Discount Note 5.400% 07/30/98 2,000,000 1,991,300
FHLB Discount Note 5.400% 09/02/98 2,000,000 1,981,100
FHLB Discount Note 5.350% 12/03/98 3,000,000 2,930,896
FHLB Discount Note 5.350% 10/21/98 2,000,000 1,966,711
----------
12,799,299
TOTAL U.S. GOVERNMENT AND AGENCY BONDS 40,326,716
----------
(IDENTIFIED COST $40,326,716)
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-38-
<PAGE>
ACCESSOR FUNDS, INC.
U.S. GOVERNMENT MONEY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
(CONCLUDED)
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
SHORT-TERM INVESTMENTS AND CASH EQUIVALENTS (17.0%)
REPURCHASE AGREEMENTS
Fifth Third Bank Repurchase Agreement (collateralized by 5.450% 07/01/98 $8,233,604 $ 8,233,604
8,199,000 US Treasury Note , 7.50%, 10/31/99, ------------
market value $8,398,850)
TOTAL SHORT-TERM INVESTMENTS AND CASH EQUIVALENTS
(IDENTIFIED COST $8,233,604) 8,233,604
------------
(1)
TOTAL INVESTMENTS (100.0%) (IDENTIFIED COST $48,560,320) $ 48,560,320
------------
------------
</TABLE>
(1) The identified cost for Federal Tax purposes is the same as shown above.
- --------------------------------------------------------------------------------
The notes are an integral part of the financial statements
-39-
<PAGE>
ACCESSOR FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUEAND SMALLTO INTERNATIONAL
GROWTH INCOME MIDCAP EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value $121,974,849 $115,456,977 $209,886,938 $181,303,912
Repurchase agreements, at cost 315,203 8,318,537 4,389,406 -
------------ ------------ ------------ ------------
TOTAL INVESTMENTS (1) 122,290,052 123,775,514 214,276,344 181,303,912
Cash - - - 203,320
Receivable for investments sold 137,315 - 4,246,166 1,830,860
Receivable for capital shares sold 448,993 805,757 3,764,153 1,162,432
Dividends and interest receivable 100,989 137,824 121,003 378,144
Open forward currency contracts - - - 7,171
TBA purchase commitments, at value - - - -
Other assets - - - 22,849
------------ ------------ ------------ ------------
TOTAL ASSETS 122,977,349 124,719,095 222,407,666 184,908,688
LIABILITIES:
Distributions payable 784,450 622,056 3,917,863 -
Payable for investments purchased 170,393 - - 5,606,138
Payable for capital shares repurchased 70,290 11,145 282,726 1,144,768
Open forward currency contracts - - - 1,784
Payable due to Bennington 42,583 44,976 102,584 75,443
Money managers fee payable 55,977 100,105 148,268 242,810
TBA sale commitments, at value - - - -
Payable for futures contract settlement - 61,625 - -
Accrued expenses and other liabilities 75,233 49,935 51,242 175,296
------------ ------------ ------------ ------------
TOTAL LIABILITIES 1,198,926 889,842 4,502,683 7,246,239
------------ ------------ ------------ ------------
NET ASSETS $121,778,423 $123,829,253 $217,904,983 $177,662,449
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
NET ASSETS CONSIST OF:
Paid-in capital $ 84,297,336 $ 98,741,626 $171,403,664 $138,221,859
Net unrealized appreciation of investments,
receivables, payables, and futures contracts 29,106,042 14,558,566 31,796,590 33,235,429
Undistributed net investment income (loss) 1,474 125 (185,494) 409,997
Accumulated net realized gain (loss) on investments,
future contracts, options, and foreign currencies 8,373,571 10,528,936 14,890,223 5,795,164
------------ ------------ ------------ ------------
NET ASSETS $121,778,423 $123,829,253 $217,904,983 $177,662,449
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
NET ASSETS:
Advisor class $121,778,423 $123,829,253 $201,651,163 $177,662,449
Investor class - - 16,253,820 -
------------ ------------ ------------ ------------
TOTAL $121,778,423 $123,829,253 $217,904,983 $177,662,449
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
OUTSTANDING SHARES:
Advisor class 4,671,696 5,379,221 8,299,163 10,232,491
Investor class - - 668,892 -
------------ ------------ ------------ ------------
TOTAL 4,671,696 5,379,221 8,968,055 10,232,491
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Net asset value, offering and redemption price per share
Advisor class $ 26.07 $ 23.02 $ 24.30 $ 17.36
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Investor class $ - $ - $ 24.30 $ -
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
(1) Investments at cost $ 93,184,011 $109,401,210 $185,979,987 $146,430,882
<CAPTION>
SHORT- U.S.
INTERMEDIATE INTERMEDIATE MORTGAGE GOVERNMENT
FIXED-INCOME FIXED-INCOME SECURITIES MONEY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value $45,073,782 $45,940,369 $145,376,714 $40,326,716
Repurchase agreements, at cost 1,712,327 374,180 76,836 8,233,604
----------- ----------- ------------ -----------
TOTAL INVESTMENTS (1) 46,786,109 46,314,549 145,453,550 48,560,320
Cash 298 - 2,786 -
Receivable for investments sold 506,926 - 16,951,078 -
Receivable for capital shares sold 101,828 236,621 224,628 16,714
Dividends and interest receivable 651,898 731,370 1,004,987 1,246
Open forward currency contracts - - - -
TBA purchase commitments, at value - - 10,531,809 -
Other assets - - - -
----------- ----------- ------------ -----------
TOTAL ASSETS 48,047,059 47,282,540 174,168,838 48,578,280
LIABILITIES:
Distributions payable 144,189 166,545 691,096 181,768
Payable for investments purchased 2,139,530 - 23,296,262 -
Payable for capital shares repurchased 75,907 9,366 79,398 109
Open forward currency contracts - - - -
Payable due to Bennington 13,053 13,783 40,701 9,952
Money managers fee payable 5,860 7,845 77,021 -
TBA sale commitments, at value - - 13,906,616 -
Payable for futures contract settlement - - 49,760 -
Accrued expenses and other liabilities 36,175 30,242 48,846 36,063
----------- ----------- ------------ -----------
TOTAL LIABILITIES 2,414,714 227,781 38,189,700 227,892
----------- ----------- ------------ -----------
NET ASSETS $45,632,345 $47,054,759 $135,979,138 $48,350,388
----------- ----------- ------------ -----------
----------- ----------- ------------ -----------
NET ASSETS CONSIST OF:
Paid-in capital $44,935,571 $46,662,627 $133,032,956 $48,355,223
Net unrealized appreciation of investments,
receivables, payables, and futures contracts 1,023,054 440,714 1,821,320 -
Undistributed net investment income (loss) (204) (4,249) (32,946) 14
Accumulated net realized gain (loss) on investments,
future contracts, options, and foreign currencies (326,076) (44,333) 1,157,808 (4,849)
----------- ----------- ------------ -----------
NET ASSETS $45,632,345 $47,054,759 $135,979,138 $48,350,388
----------- ----------- ------------ -----------
----------- ----------- ------------ -----------
NET ASSETS:
Advisor class $45,632,345 $47,054,759 $135,979,138 $48,350,388
Investor class - - - -
----------- ----------- ------------ -----------
TOTAL $45,632,345 $47,054,759 $135,979,138 $48,350,388
----------- ----------- ------------ -----------
----------- ----------- ------------ -----------
OUTSTANDING SHARES:
Advisor class 3,708,465 3,827,588 10,757,677 48,355,646
Investor class - - - -
----------- ----------- ------------ -----------
TOTAL 3,708,465 3,827,588 10,757,677 48,355,646
----------- ----------- ------------ -----------
----------- ----------- ------------ -----------
Net asset value, offering and redemption price per share
Advisor class $ 12.30 $ 12.29 $ 12.64 $ 1.00
----------- ----------- ------------ -----------
----------- ----------- ------------ -----------
Investor class $ - $ - $ - $ -
----------- ----------- ------------ -----------
----------- ----------- ------------ -----------
(1) Investments at cost
$45,757,613 $46,174,812 $143,379,546 $48,560,320
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-40-
<PAGE>
ACCESSOR FUNDS, INC.
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE AND SMALL TO INTERNATIONAL
GROWTH INCOME MID CAP EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends(net of foreign withholding taxes of $187,141
for International Equity Portfolio) $ 546,984 $ 947,263 $ 770,105 $ 1,543,562
Interest 38,804 221,155 166,434 155,089
----------- ----------- ----------- -----------
TOTAL INVESTMENT INCOME 585,788 1,168,418 936,539 1,698,651
EXPENSES:
Management fees 234,707 241,626 541,925 467,276
Money managers fees 95,638 171,777 289,025 509,757
Transfer agent and administration fees 77,513 70,950 117,747 109,635
Fund accounting fees 18,761 20,019 25,009 41,441
Legal fees 11,611 5,670 5,124 4,042
Audit fees 5,347 7,010 6,977 8,474
Custodian fees 5,857 4,896 10,357 110,003
Amortization of deferred organizational expenses - - - 6,878
Registration fees 14,278 13,007 12,404 17,847
Directors fees 1,360 1,336 1,323 1,337
Printing/Postage expense 3,151 2,052 3,615 3,131
Other 6,593 3,968 4,742 8,833
Investor Class Only:
Shareholder services fees - - 545 -
Administrative services fees - - 545 -
----------- ----------- ----------- -----------
TOTAL EXPENSES 474,816 542,311 1,019,338 1,288,654
----------- ----------- ----------- -----------
NET INVESTMENT INCOME (LOSS) 110,972 626,107 (82,799) 409,997
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on:
Investments 8,530,223 10,584,491 14,886,028 8,055,312
Foreign exchange - - - (2,057,441)
Options - - - -
Change in unrealized appreciation (depreciation)
of investments 13,496,592 126,196 8,486,206 20,348,571
Change in unrealized appreciation of foreign currency - - - 3,284
----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS 22,026,815 10,710,687 23,372,234 26,349,726
----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $22,137,787 $11,336,794 $23,289,435 $26,759,723
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
<CAPTION>
SHORT- U.S.
INTERMEDIATE INTERMEDIATE MORTGAGE GOVERNMENT
FIXED-INCOME FIXED-INCOME SECURITIES MONEY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends(net of foreign withholding taxes of $187,141
for International Equity Portfolio) $ - $ - $ - $ -
Interest 1,623,307 1,329,997 4,100,045 1,326,012
---------- ---------- ---------- ----------
TOTAL INVESTMENT INCOME 1,623,307 1,329,997 4,100,045 1,326,012
EXPENSES:
Management fees 92,035 80,967 231,411 60,248
Money managers fees 27,434 22,095 147,847 -
Transfer agent and administration fees 37,411 32,362 84,090 35,753
Fund accounting fees 19,386 18,745 27,221 7,204
Legal fees 4,684 5,820 6,637 3,897
Audit fees 7,362 6,978 7,941 7,200
Custodian fees 1,951 1,478 19,486 3,856
Amortization of deferred organizational expenses - - - -
Registration fees 9,712 10,446 10,621 7,225
Directors fees 1,391 1,298 1,337 1,022
Printing/Postage expense 2,844 1,089 3,905 8,031
Other 2,777 7,236 3,385 516
Investor Class Only:
Shareholder services fees - - - -
Administrative services fees - - - -
---------- ---------- ---------- ----------
TOTAL EXPENSES 206,987 188,514 543,881 134,952
---------- ---------- ---------- ----------
NET INVESTMENT INCOME (LOSS) 1,416,320 1,141,483 3,556,164 1,191,060
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on:
Investments 1,054,783 3,412 1,182,344 -
Foreign exchange - - - -
Options - - (25,810) -
Change in unrealized appreciation (depreciation)
of investments (654,524) 51,028 (616,076) -
Change in unrealized appreciation of foreign currency - - - -
---------- ---------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS 400,259 54,440 540,458 -
---------- ---------- ---------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $1,816,579 $1,195,923 $4,096,622 $1,191,060
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-41-
<PAGE>
ACCESSOR FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH PORTFOLIO VALUE AND INCOME PORTFOLIO
------------------------------- -----------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
INCREASE (DECREASE) IN NET ASSETS: 30-JUN-98 (1) 31-DEC-97 30-JUN-98 (1) 31-DEC-97
<S> <C> <C> <C> <C>
From operations:
Net Investment Income $ 110,972 $ 461,988 $ 626,107 $ 816,667
Net realized gain on investments 8,530,223 16,907,790 10,584,491 9,186,661
Change in unrealized appreciation of investments 13,496,592 4,574,902 126,196 7,639,735
-------------- ------------ ------------- -----------
Net increase in net assets resulting from operations 22,137,787 21,944,680 11,336,794 17,643,063
Distributions from:
Net investment income (111,215) (460,271) (626,241) (816,408)
Net realized gain on investments (2,627,316) (15,608,927) (1,257,089) (8,426,264)
-------------- ------------ ------------- -----------
Total distributions (2,738,531) (16,069,198) (1,883,330) (9,242,672)
Capital share transactions:
Proceeds from subscriptions 38,227,306 42,600,128 48,438,412 45,978,728
Reinvestment of distributions 1,910,400 11,189,025 1,043,315 6,614,169
Cost of redemptions (25,665,545) (32,343,403) (16,232,560) (16,233,640)
-------------- ------------ ------------- -----------
Net increase resulting from capital share transactions 14,472,161 21,445,750 33,249,167 36,359,257
Total increase in net assets 33,871,417 27,321,232 42,702,631 44,759,648
NET ASSETS:
Beginning of period 87,907,006 60,585,774 81,126,622 36,366,974
-------------- ------------ ------------- -----------
End of period $ 121,778,423 $ 87,907,006 $ 123,829,253 $ 81,126,622
-------------- ------------ ------------- -----------
-------------- ------------ ------------- -----------
</TABLE>
(1) Unaudited
- --------------------------------------------------------------------------------
See notes to financial statements
-42-
<PAGE>
ACCESSOR FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL TO MID CAP PORTFOLIO INTERNATIONAL EQUITY
------------------------------- -----------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
INCREASE (DECREASE) IN NET ASSETS: 30-JUN-98 (1) 31-DEC-97 30-JUN-98 (1) 31-DEC-97
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss) $ (82,799) $ (3,818) $ 409,997 $ (236,704)
Net realized gain on investments, options,
and foreign currency 14,886,028 24,033,927 5,997,871 4,905,193
Change in unrealized appreciation of investments 8,486,206 14,019,209 20,351,855 4,620,705
------------- ------------- ------------- -------------
Net increase in net assets resulting from operations 23,289,435 38,049,318 26,759,723 9,289,194
Distributions from:
Net realized gain on investments
Advisor Class (5,843,696) - - -
Investor Class (463,706) - - -
-------------
Total (6,307,402) (19,306,498) - (4,905,193)
Excess of net investment income - (102,695) - -
Excess of net realized gain on investments - - - (202,707)
------------- ------------- ------------- -------------
Total distributions (6,307,402) (19,409,193) - (5,107,900)
Capital share transactions:
Proceeds from subscriptions
Advisor Class 110,336,657 - - -
Investor Class 15,880,666 - - -
------------- ------------- ------------- -------------
Total 126,217,323 114,006,085 59,551,706 93,636,071
Reinvestment of distributions
Advisor Class 1,925,822 - - -
Investor Class 463,717 - - -
--------------
Total 2,389,539 11,867,758 - 3,517,461
Cost of redemptions (52,905,350) (84,771,366) (60,090,111) (22,913,075)
------------- ------------- ------------- -------------
Net increase (decrease) resulting from capital share transactions 75,701,512 41,102,477 (538,405) 74,240,457
Total increase in net assets 92,683,545 59,742,602 26,221,318 78,421,751
NET ASSETS:
Beginning of period 125,221,438 65,478,836 151,441,131 73,019,380
------------- ------------- ------------- -------------
End of period $ 217,904,983 $ 125,221,438 $ 177,662,449 $ 151,441,131
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
(1) Unaudited
- --------------------------------------------------------------------------------
See notes to financial statements
-43-
<PAGE>
ACCESSOR FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE SHORT-INTERMEDIATE
FIXED-INCOME PORTFOLIO FIXED-INCOME PORTFOLIO
------------------------------ -------------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
INCREASE (DECREASE) IN NET ASSETS: 30-JUN-98 (1) 31-DEC-97 30-JUN-98 (1) 31-DEC-97
<S> <C> <C> <C> <C>
From operations:
Net investment income $ 1,416,320 $ 2,899,193 $ 1,141,483 $ 2,097,549
Net realized gain on investments 1,054,783 36,784 3,412 6,148
Change in unrealized appreciation (depreciation) of investments (654,524) 1,080,463 51,028 412,603
------------- ------------- ------------ ------------
Net increase in net assets resulting from operations 1,816,579 4,016,440 1,195,923 2,516,300
Distributions from:
Net investment income (1,416,524) (2,900,522) (1,141,313) (2,098,114)
Excess of net investment income - - - (4,419)
------------- ------------- ------------ ------------
Total distributions (1,416,524) (2,900,522) (1,141,313) (2,102,533)
Capital share transactions:
Proceeds from subscriptions 16,050,559 22,943,316 11,571,775 20,305,381
Reinvestment of distributions 493,561 1,033,657 194,513 249,894
Cost of redemptions (26,508,740) (22,143,716) (5,708,181) (16,727,519)
------------- ------------- ------------ ------------
Net increase (decrease) resulting from capital share transactions (9,964,620) 1,833,257 6,058,107 3,827,756
Total increase (decrease) in net assets (9,564,565) 2,949,175 6,112,717 4,241,523
NET ASSETS:
Beginning of period 55,196,910 52,247,735 40,942,042 36,700,519
------------- ------------- ------------ ------------
End of period $ 45,632,345 $ 55,196,910 $ 47,054,759 $ 40,942,042
------------- ------------- ------------ ------------
------------- ------------- ------------ ------------
</TABLE>
(1) Unaudited
- --------------------------------------------------------------------------------
See notes to financial statements
-44-
<PAGE>
ACCESSOR FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MORTGAGE SECURITIES U.S. GOVERNMENT
PORTFOLIO MONEY PORTFOLIO
------------------------------ -------------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
INCREASE (DECREASE) IN NET ASSETS: 30-Jun-98 (1) 31-Dec-97 30-JUN-98 (1) 31-DEC-97
<S> <C> <C> <C> <C>
From operations:
Net investment income $ 3,556,164 $ 5,380,667 $ 1,191,060 $ 2,774,101
Net realized gain (loss) on investments 1,156,534 1,115,943 - (5,036)
Change in unrealized appreciation (depreciation) of investments (616,076) 1,939,701 - -
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 4,096,622 8,436,311 1,191,060 2,769,065
Distributions from:
Net investment income (3,551,564) (5,380,667) (1,191,046) (2,774,283)
Excess of net investment income - (37,546) - -
Net realized gain on investments (302,445) (408,792) - -
------------ ------------ ------------ ------------
Total distributions (3,854,009) (5,827,005) (1,191,046) (2,774,283)
Capital share transactions:
Proceeds from subscriptions 37,611,490 46,306,046 58,303,462 93,789,512
Reinvestment of distributions 756,490 1,482,818 68,416 59,844
Cost of redemptions (12,378,502) (14,513,511) (60,931,397) (104,606,175)
------------ ------------ ------------ ------------
Net increase (decrease) resulting from capital share transactions 25,989,478 33,275,353 (2,559,519) (10,756,819)
Total increase (decrease) in net assets 26,232,091 35,884,659 (2,559,505) (10,762,037)
NET ASSETS:
Beginning of period 109,747,047 73,862,388 50,909,893 61,671,930
------------ ------------ ------------ ------------
End of period $135,979,138 $109,747,047 $ 48,350,388 $ 50,909,893
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
</TABLE>
(1) Unaudited
- --------------------------------------------------------------------------------
See notes to financial statements
-45-
<PAGE>
ACCESSOR FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION
Accessor Funds, Inc. (the "Fund") is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment
company consisting of eight diversified investment portfolios: Growth
Portfolio, Value and Income Portfolio, Small to Mid Cap Portfolio (the
"Equity Portfolios"), International Equity Portfolio (the "International
Portfolio"), Intermediate Fixed-Income Portfolio, Short-Intermediate
Fixed-Income Portfolio, Mortgage Securities Portfolio (the "Bond
Portfolios"), and U.S. Government Money Portfolio (the "Money Portfolio")
(individually, a "Portfolio", collectively, the "Portfolios"). The Fund
was incorporated in Maryland on June 10, 1991. Each portfolio offers two
classes of shares, Advisor Class Shares and Investor Class Shares. Both
classes of shares have identical rights and privileges except with respect
to expenses specific to each class, and voting rights on matters affecting
a single class, including distribution, shareholder service and
administrative service arrangements.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Portfolios.
SECURITY VALUATION
Equity securities listed and traded principally on a national securities
exchange are valued on the basis of last sale price on such exchange on the
day of valuation or, if no sale occurred on such day, at the closing bid
price on the primary exchange on which the security is traded. Domestic
over-the-counter equity and fixed income securities and options are valued
on the basis of the closing bid price. International securities traded
over-the-counter are valued on the basis of the mean of bid prices. Futures
contracts are valued on the basis of the last sales price.
Domestic fixed income securities and other assets for which market
quotations are readily available (other than obligations with remaining
maturities of 60 days or less) are valued on the basis of quotations
obtained from dealers or pricing services with consideration of such
factors as institutional-sized trading in similar groups of securities,
quality, yield, coupon rate, maturity, type of issue, trading
characteristics and other market data.
Investments in the Money Portfolio and short-term investments maturing in
60 days or less are valued at amortized cost, which approximates market
value.
Investments for which market quotations are not readily available are
valued at their fair value as determined in good faith in accordance with
procedures adopted by the Board of Directors.
SECURITY TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are accounted for on the date the securities are
purchased or sold (trade date). Interest income is recorded on the accrual
basis. All premiums and discounts are amortized or accreted for both
financial statement and tax reporting purposes as required by Federal
Income Tax Regulations. Dividend income, less foreign tax withheld, is
recorded on the ex-dividend date or upon receipt of ex-dividend
notification in the case of certain foreign securities. Realized gains and
losses on the sale of investments are determined on the identified cost
basis.
-46-
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSACTIONS
The books and records of the Portfolios are maintained in U.S. dollars. The
Bond Portfolios may purchase debt obligations that are payable in a foreign
currency, and the International Portfolio and Equity Portfolios may
purchase equity securities that are payable in a foreign currency. For
these Portfolios, investment securities, other assets and liabilities
denominated in a foreign currency are translated into U.S. dollars at the
current exchange rate. Purchases and sales of securities, income receipts
and expense payments are translated into U.S. dollars at the rate on the
dates of the transactions.
Reported net realized foreign exchange gains or losses arise from sales of
securities, purchases and sales of foreign currencies, currency gains or
losses realized between the trade and settlement dates of securities
transactions, and the difference between the amount of expenses recorded on
each of the Portfolio's books and the U.S. dollar equivalent of the amounts
actually received or paid. Net unrealized foreign exchange gains or losses
arise from changes in the value of assets and liabilities, including
investments in securities, resulting from changes in the exchange rates.
The Portfolios report certain foreign currency related security
transactions as components of realized gains in the statement of operation
for financial reporting purposes, whereas such components are treated as
ordinary income for Federal income tax purposes. The Portfolios isolate
that portion of the results of operations resulting from changes in the
foreign exchange rates on investments from the fluctuation arising from
changes in market prices of equity securities.
Foreign security and currency transactions may involve certain
considerations and risks not typically associated with those of U.S. dollar
denominated transactions. These risks include political or economic
instability in the country of the issuer, the difficulty of predicting
international trade patterns, the possibility of imposition of exchange
controls and the risk of currency fluctuations.
OFF-BALANCE SHEET RISK
The Portfolios may trade financial instruments with off-balance sheet risk
in the normal course of investing activities and to assist in managing
exposure to market risks such as interest rates and foreign currency
exchange rates. These financial instruments include forward foreign
currency exchange contracts, futures contracts and options transactions.
The notional or contractual amounts of these instruments represent the
investment the Portfolios have in particular classes of financial
instruments and do not necessarily represent the amounts potentially
subject to risk. The measurement of the risks associated with these
instruments is meaningful only when all related and offsetting transactions
are considered.
FUTURES CONTRACTS
The Portfolios (other than the Money Portfolio) are permitted to enter into
financial futures contracts, stock index futures contracts and related
options in accordance with their investment objectives. The International
Portfolio may also purchase and write futures contracts on foreign
currencies. A Portfolio is required to deposit either in cash or
securities an amount equal to a certain percentage of the contract amount.
Subsequent payments are made or received by a Portfolio each day, dependent
on daily fluctuations in the value of the contract. Such payments or
receipts are known as variation margin and are recorded for financial
statement purposes as unrealized gains or losses by a Portfolio. Should
interest rates move unexpectedly, a Portfolio may not achieve the
anticipated benefits of the financial futures contracts and may realize a
loss.
-47-
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
When the contract is closed, the portfolio records a realized gain or
loss equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed. The
potential risk to the Portfolios is that the change in the value of the
underlying securities may not correlate to the change in value of the
contracts.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
The International Portfolio will generally enter into forward foreign
currency exchange contracts as a way of managing foreign exchange rate
risk. It may enter into these contracts to fix the U.S. dollar value of a
security that it has agreed to buy or sell for the period between the date
the trade was entered into and the date the security is delivered and paid
for. The International Portfolio may also use these contracts to hedge the
U.S. dollar value of securities it already owns denominated in foreign
currencies. Forward foreign currency contracts are valued at the forward
rate, and are marked-to-market daily. The change in market value is
recorded as an unrealized gain or loss until the contract settlement date,
at which time the Portfolio records a realized gain or loss equal to the
difference between the value of the contract at the time it was opened and
the value at the time it was closed.
The use of forward foreign currency contracts does not eliminate
fluctuations in the underlying prices of the International Portfolio's
securities, but it does establish a rate of exchange that can be achieved
in the future. Although forward foreign currency contracts limit the risk
of loss due to a decline in the value of the hedged currency, they also
limit any potential gain that might result should the value of the currency
increase. In addition, the International Portfolio could be exposed to
risks if the counterparties to the contracts are unable to meet the terms
of their contracts.
OPTIONS TRANSACTIONS
The Portfolios may purchase and sell (write) call and put options on
securities and securities indices, provided such options are traded on a
national securities exchange or in an over-the-counter market. These
Portfolios may also purchase and sell call and put options on foreign
currencies. The Equity Portfolios may utilize options to equitize
liquidity reserve balances.
When any of the Portfolios (other than the Money Portfolio, which does not
invest in any option transactions) writes a covered call or put option, an
amount equal to the premium received is included in that Portfolio's
statement of assets and liabilities as a liability. The amount of the
liability is subsequently marked-to-market to reflect the current market
value of the option. If an option expires on its stipulated expiration
date or if the Portfolio enters into a closing purchase transaction, a gain
or loss is realized. If a written call option is exercised, a gain or loss
is realized for the sale of the underlying security and the proceeds from
the sale are increased by the premium originally received. If a written
put option is exercised, the cost of the security acquired is decreased by
the premium originally received. As writer of an option, the Portfolio has
no control over whether the underlying securities are subsequently sold
(call) or purchased (put) and, as a result, bears the market risk of an
unfavorable change in the price of the security underlying the written
option.
When any of the Portfolios (other than the Money Portfolio, which does not
invest in any option transactions) purchases a call or put option, an
amount equal to the premium paid is included in that Portfolio's statement
of assets and liabilities as an investment, and is subsequently
marked-to-market to reflect the current market value of the option. If an
option expires on the stipulated expiration date or if a Portfolio enters
into a closing sale transaction, a gain or loss is realized. If a
Portfolio exercises a call, the cost of the security acquired is increased
by the premium paid for the call.
-48-
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
If a Portfolio exercises a put option, a gain or loss is realized from
the sale of the underlying security, and the proceeds from such sale are
decreased by the premium originally paid. Written and purchased options
are non-income producing securities.
The option techniques utilized are to hedge against changes in interest
rates, foreign currency exchange rates or securities prices in order to
establish more definitely the effective return on securities or currencies
held or intended to be acquired by a Portfolio, to reduce the volatility of
the currency exposure associated with investment in non-U.S. securities, or
as an efficient means of adjusting exposure to the bond, equity and
currency markets and not for speculation.
REPURCHASE AGREEMENTS
The Portfolios may enter into repurchase agreements (agreements to purchase
U.S. Treasury notes and bills, subject to the seller's agreement to
repurchase them at a specified time and price) with well-established
dealers or institutions that the Portfolios' management has determined to
be creditworthy. It is the Portfolios' policy to take possession of the
underlying securities and, on a daily basis, mark-to-market such securities
to ensure that the market value including accrued interest is at least
equal to the amount owed to the Portfolios under each repurchase agreement.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income are declared daily and paid
monthly for the Money Portfolio; declared and paid monthly for the Bond
Portfolios; declared and paid quarterly for the Equity Portfolios; declared
and paid annually for the International Portfolio. Distributions of net
realized gains, if any, will be declared and paid at least annually for all
Portfolios. Distributions to shareholders are recorded on the ex-dividend
date.
Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally
accepted accounting principles.
FEDERAL INCOME TAXES
It is each Portfolio's intention to comply with the requirements of the
Internal Revenue Code (the "Code") to qualify as a regulated investment
company and distribute all of its taxable income and realized gains, if
any, to shareholders. In addition, by distributing all of its taxable
income and realized gains to shareholders, the Portfolios will not be
subject to a Federal excise tax. Accordingly, no provision for Federal
income taxes is required in the financial statements.
Each Portfolio files a tax return annually using tax accounting methods
required under provisions of the Code which may differ from generally
accepted accounting principles, the basis on which these financial
statements are prepared. The differences arise primarily from the
treatment of foreign currency transactions and futures contracts and the
deferral of certain losses under Federal income tax regulations.
Accordingly, the amount of net investment income and net realized gains or
losses reported in these financial statements may differ from that
reported in each Portfolio's tax return and, consequently, the character of
distributions to shareholders reported in the financial highlights may
differ from that reported to shareholders for Federal income tax purposes.
Distributions which exceed net investment income and net realized gains for
financial reporting purposes but not for tax purposes, if any, are shown as
distributions in excess of net investment income and net realized gains in
the accompanying financial statements.
-49-
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
FORWARD COMMITMENTS
The Portfolios may contract to purchase securities for a fixed price at a
future date beyond the customary settlement period (i.e. "when issued,"
"delayed delivery," "forward commitment" or "TBA") consistent with a
Portfolio's ability to manage its investment portfolio and meet redemption
requests. These transactions involve a commitment by a Portfolio to
purchase or sell securities for a predetermined price or yield with payment
and delivery taking place more than three days in the future, or after a
period longer than the customary settlement period for that type of
security. No interest will be earned by a Portfolio on such purchases until
the securities are delivered; however the market value may change prior to
delivery.
The Portfolios may enter into TBA sale commitments to hedge their portfolio
positions or to sell mortgage-backed securities it owns under delayed
delivery arrangements. Proceeds of TBA sale commitments are not received
until the contractual settlement date. During the time a TBA sale
commitment is outstanding, equivalent deliverable securities, or an
offsetting TBA purchase commitment deliverable on or before the sale
commitment date, are held as "cover" for the transaction.
Unsettled TBA sale commitments are valued at the current market value of
the underlying securities, generally according to the procedures described
under "Security Valuation" above. The contract is "marked-to-market" daily
and the change in market value is recorded by the portfolio as an
unrealized gain or loss. If the TBA sale commitment is closed through the
acquisition of an offsetting purchase commitment, the Portfolio realizes a
gain or loss from the sale of the securities based upon the unit price
established at the date the commitment was entered into.
ORGANIZATIONAL EXPENSES
Organizational expenses are being amortized on a straight-line basis over a
period not to exceed 60 months.
OTHER
Investment income, realized and unrealized gains and losses and shared
expenses incurred by the Fund are allocated among the Portfolios based on
each Portfolio's ratio of relative net assets to the combined net assets.
Specifically identified direct expenses are charged to each Portfolio as
incurred. Portfolio expenses not specific to any class of shares are
prorated among the classes based upon the relative net assets of each
class. Specifically identified direct expenses of each class are charged to
that class as incurred.
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 and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
-50-
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
3. RELATED PARTY TRANSACTIONS
MANAGER
The Fund has a management agreement with Bennington Capital Management
L.P. ("Bennington"). Pursuant to this agreement, Bennington operates
and administers the provision of all general management, investment
advisory and portfolio management services. Bennington also manages the
Intermediate Fixed-Income, Short-Intermediate Fixed-Income, and U.S.
Government Money Portfolios. Fees paid are computed monthly based on
the average daily net assets of each Portfolio at an annualized rate as
follows:
<TABLE>
<CAPTION>
ANNUAL
PORTFOLIO MANAGEMENT FEE
--------- --------------
<S> <C>
Growth 0.45%
Value and Income 0.45
Small to Mid Cap 0.60
International Equity 0.55
Intermediate Fixed-Income 0.36
Short-Intermediate Fixed-Income 0.36
Mortgage Securities 0.36
U.S. Government Money 0.25
</TABLE>
MONEY MANAGERS
Each Portfolio's assets (other than the Intermediate Fixed-Income,
Short-Intermediate Fixed-Income, and U.S. Government Money Portfolios) are
invested by an investment management organization (individually, a "Money
Manager"; collectively, the "Money Managers"), researched and recommended
by Bennington. For the first five complete calendar quarters of investment
operations for a Portfolio, each Portfolio will pay its respective Money
Manager on a quarterly basis an annual fee based on the average daily net
assets of the Portfolio managed by such Money Manager. This fee has two
components, the Basic Fee and the Portfolio Management Fee. Commencing
with the sixth calendar quarter of investment operations for each
Portfolio, the Money Manager fee consists of two components, the Basic Fee
and the Performance Fee.
The Performance Fee component is adjusted each quarter based on the
annualized investment performance of each Money Manager relative to the
annualized investment performance of the following benchmark indices, which
may be changed only with the approval of the Fund's Board of Directors:
-51-
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PORTFOLIO INDEX
--------- -----
<S> <C>
Growth S&P/BARRA Growth Index
Value and Income S&P/BARRA Value Index
Small to Mid Cap Wilshire 4500 Index
International Equity Morgan Stanley Capital International
EAFE-Registered Trademark- + EMF
Index
Intermediate Fixed-Income Lehman Brothers Government/Corporate
Index
Short-Intermediate Fixed-Income Lehman Brothers Government/Corporate
1-5 Year Index
Mortgage Securities Lehman Brothers Mortgage-Backed
Securities Index
</TABLE>
For the six months ended June 30, 1998, the following Basic Fees, Portfolio
Management Fees and Performance Fees were calculated based on the average
daily net assets of the Portfolios:
<TABLE>
<CAPTION>
BASIC PORTFOLIO PERFORMANCE TOTAL
MONEY MONEY MONEY MONEY
MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT
PORTFOLIO QUARTER FEE FEE FEE FEE
--------- -------- ---------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Growth 1st Quarter 0.10% 0.10% - 0.20%
(See Shareholder Letter) 2nd Quarter 0.10 0.10 - 0.20
Value and Income 1st Quarter 0.10 - 0.22 0.32
2nd Quarter 0.10 - 0.22 0.32
Small to Mid Cap 1st Quarter 0.10 - 0.22 0.32
2nd Quarter 0.10 - 0.22 0.32
International Equity 1st Quarter 0.20 - 0.40 0.60
2nd Quarter 0.20 - 0.40 0.60
Intermediate Fixed- 1st Quarter 0.07 - 0.08 0.15
Income 2nd Quarter 0.07 - 0.08 0.15*
Short-Intermediate 1st Quarter 0.07 - 0.08 0.15
Fixed-Income 2nd Quarter 0.07 - 0.08 0.15*
Mortgage 1st Quarter 0.07 - 0.16 0.23
Securities 2nd Quarter 0.07 - 0.16 0.23
</TABLE>
- --------------------
* Bennington directly manages the assets of the Intermediate Fixed-Income,
Short-Intermediate Fixed-Income, and U.S. Government Money Portfolios,
therefore there is no Money Manager Fee associated with these Portfolios.
Money Manager fees paid to Smith Barney and Banker's Trust Company through
April 30, 1998 only.
DISTRIBUTION AND SHAREHOLDER SERVICE PLANS
The Fund has adopted a Distribution Plan under Rule 12b-1 of the Investment
Company Act of 1940 with respect to the Investor Class Shares of each
Portfolio to reimburse third party intermediaries or other service
organizations each month for distribution-related expenses incurred. Under
the terms of the Distribution Plan, the Fund will reimburse
-52-
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
third party selling and distribution agents responsible for sales and
promotional efforts including printing of prospectuses and reports used
for sales purposes. The Fund has adopted a Shareholder Service Plan with
respect to the Investor Class Shares of each Portfolio to reimburse
third party service organizations who provide account maintenance
services.
The maximum amount payable to service organizations under the Distribution
Plan and Shareholder Service Plan, in aggregate, may not exceed on an
annual basis 0.25% of the average daily net assets of each Portfolio
attributable to Investor Class Shares.
ADMINISTRATIVE SERVICE PLAN
The Fund has adopted an Administrative Service Plan with respect to the
Investor Class Shares of each Portfolio to reimburse third party service
organizations who provide administrative and support services. The maximum
amount payable to service organizations under the Administrative Services
Plan for these expenses on an annual basis is 0.25% of the average daily
net assets of each Portfolio attributable to Investor Class Shares,
provided, however, that no Portfolio shall directly or indirectly pay any
distribution related amounts that will be allocated under the Fund's
Distribution Plan.
TRANSFER AGENT AND ADMINISTRATION
The Fund has a Transfer Agency and Administrative Agreement with
Bennington. Pursuant to this agreement, Bennington acts as transfer agent
and administrator to the Fund, performing all transfer agent and certain
compliance services. The fees are computed as the greater of an annual fee
expressed as a percentage of the average daily net assets, per portfolio,
or a minimum dollar amount per portfolio.
4. SHARES OF STOCK
The Fund, incorporated in Maryland on June 10, 1991, is authorized to issue
15,000,000,000 shares of Common Stock, $.001 par value. Transactions in
shares of the Portfolios were as follows:
<TABLE>
<CAPTION>
GROWTH VALUE AND INCOME
PORTFOLIO PORTFOLIO
------------------------- ------------------------
Period ended Year ended Period ended Year ended
30-Jun-98 31-Dec-97 30-Jun-98 31-Dec-97
<S> <C> <C> <C> <C>
Shares outstanding -beginning
of period 4,074,644 3,105,644 3,884,680 2,048,702
Shares subscribed 1,573,282 1,828,825 2,150,698 2,267,839
Shares issued on reinvestment
of distributions 73,346 511,145 45,209 317,161
Shares redeemed (1,049,576) (1,370,970) (701,366) (749,022)
---------- ---------- --------- ----------
Shares outstanding - end of
period 4,671,696 4,074,644 5,379,221 3,884,680
---------- ---------- --------- ----------
---------- ---------- --------- ----------
</TABLE>
-53-
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL TO MID CAP PORTFOLIO SMALL TO MID CAP PORTFOLIO
(ADVISOR CLASS) (INVESTOR CLASS)
--------------------------- ----------------------------
Period ended Year ended For the Period
30-Jun-98 31-Dec-97 23-Jun-98 through 30-Jun-98
<S> <C> <C> <C>
Shares outstanding - beginning
of period 5,739,844 3,479,886 -
Shares subscribed 3,164,055 5,314,273 649,809
Shares issued on reinvestment
of distributions 98,334 544,550 19,083
Shares redeemed (703,070) (3,598,865) -
--------- ---------- -------
Shares outstanding - end of
period 8,299,163 5,739,844 668,892
--------- ---------- -------
--------- ---------- -------
</TABLE>
<TABLE>
<CAPTION>
INTERMEDIATE
INTERNATIONAL EQUITY PORTFOLIO FIXED-INCOME PORTFOLIO
------------------------------ --------------------------
Period end ed Year ended Period ended Year ended
30-Jun-98 31-Dec-97 30-Jun-98 31-Dec-97
<S> <C> <C> <C> <C>
Shares outstanding - beginning of
period 10,213,260 5,281,501 4,528,468 4,388,744
Shares subscribed 3,587,276 6,193,641 1,309,926 1,908,703
Shares issued on reinvestment
of distributions - 235,796 40,340 86,534
Shares redeemed (3,568,045) (1,497,678) (2,170,269) (1,855,513)
---------- ---------- ---------- -----------
Shares outstanding - end of
period 10,232,491 10,213,260 3,708,465 3,337,535
---------- ---------- ---------- -----------
---------- ---------- ---------- -----------
</TABLE>
<TABLE>
<CAPTION>
SHORT-INTERMEDIATE MORTGAGE
FIXED-INCOME PORTFOLIO SECURITIES PORTFOLIO
-------------------------- ---------------------------
Period ended Year ended Period ended Year ended
30-Jun-98 31-Dec-97 30-Jun-98 31-Dec-97
<S> <C> <C> <C> <C>
Shares outstanding - beginning
of period 3,337,535 3,017,500 8,712,125 6,037,920
Shares subscribed 936,913 1,669,600 2,961,254 3,723,266
Shares issued on reinvestment
of distributions 16,231 20,522 59,813 119,485
Shares redeemed (463,091) (1,370,087) (975,515) (1,168,546)
---------- ---------- ---------- -----------
Shares outstanding - end of
period 3,827,588 3,337,535 10,757,677 8,712,125
---------- ---------- ---------- -----------
---------- ---------- ---------- -----------
</TABLE>
-54-
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT
MONEY PORTFOLIO
--------------------------------
Period ended Year ended
30-Jun-98 31-Dec-97
<S> <C> <C>
Shares outstanding - beginning
of period 50,915,165 61,671,797
Shares subscribed 58,303,462 93,789,699
Shares issued on reinvestment of
distributions 68,416 59,844
Shares redeemed (60,931,397) (104,606,175)
------------ -------------
Shares outstanding - end of period 48,355,646 50,915,165
------------ -------------
------------ -------------
</TABLE>
5. SECURITIES TRANSACTIONS
During the six months ended June 30, 1998, purchases, sales, and maturities
of investments, other than short-term investments and government securities
aggregated, were as follows:
<TABLE>
<CAPTION>
Portfolio Purchases Sales Maturities
--------- --------- ------ ----------
<S> <C> <C> <C>
Growth $ 74,317,409 $ 62,016,502 -
Value and Income 75,527,654 47,343,008 -
Small to Mid Cap 174,051,209 109,512,400 -
International Equity 137,861,328 145,476,497 -
Intermediate Fixed-Income 21,296,236 5,697,882 -
Short Intermediate Fixed-Income 5,093,591 - $ 595,000
Mortgage Securities 35,230,085 10,176,989 -
</TABLE>
During the six months ended June 30, 1998, purchases and sales of long-term
U.S. Government Securities, were as follows:
<TABLE>
<CAPTION>
Purchases Sales
------------ ------------
<S> <C> <C>
Intermediate Fixed-Income $ 19,773,774 $ 24,656,128
Short Intermediate Fixed-Income 20,771,869 18,680,781
Mortgage Securities 238,062,866 182,900,285
</TABLE>
-55-
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
6. IDENTIFIED COST
The identified cost for federal income tax purposes of investments owned by
each Portfolio, their respective gross unrealized
appreciation/(depreciation), and resulting net unrealized appreciation
(depreciation) as applicable at June 30, 1998 were as follows:
<TABLE>
<CAPTION>
GROSS NET
IDENTIFIED UNREALIZED UNREALIZED
COST APPRECIATION (DEPRECIATION) APPRECIATION
---------- ------------ -------------- ------------
<S> <C> <C> <C> <C>
Growth $93,184,011 $29,775,734 $ (669,693) $29,106,041
Value and Income 109,401,201 17,483,913 (3,109,609) 14,374,304
Small to Mid Cap 18,579,987 32,735,528 (4,439,171) 28,296,357
International Equity 146,430,882 36,271,827 (3,036,398) 33,235,429
Intermediate Fixed-Income 45,771,681 1,030,944 (16,516) 1,014,428
Short-Intermediate Fixed-Income 45,873,835 473,034 (320,320) 440,714
</TABLE>
7. DIVIDENDS
The Board of Directors declared the following dividends from net investment
income on ex-date July 31,1998, payable on August 3, 1998, to the
shareholders of record on July 30,1998:
<TABLE>
<S> <C>
Intermediate Fixed-Income $ 0.056537
Short-Intermediate Fixed-Income 0.054836
Mortgage Securities 0.059926
</TABLE>
-56-
<PAGE>
ACCESSOR FUNDS, INC.
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH PORTFOLIO
----------------------------------------------------------------------
1998(1) 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 21.57 $ 19.51 $ 17.99 $ 14.37 $ 14.16
---------- ---------- ---------- ---------- ----------
Net investment income 0.02 0.13 0.19 0.15 0.13
Net realized and unrealized gain on investments 5.08 6.31 3.35 4.76 0.42
---------- ---------- ---------- ---------- ----------
Total from investment operations 5.10 6.44 3.54 4.91 0.55
---------- ---------- ---------- ---------- ----------
Distributions from net investment income (0.03) (0.13) (0.19) (0.15) (0.13)
Distributions from capital gains (0.57) (4.25) (1.83) (1.14) (0.21)
---------- ---------- ---------- ---------- ----------
Total distributions (0.60) (4.38) (2.02) (1.29) (0.34)
---------- ---------- ---------- ---------- ----------
Net Asset Value, end of period $ 26.07 $ 21.57 $ 19.51 $ 17.99 $ 14.37
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Total return (2) 23.63 % 33.24 % 19.83 % 34.32 % 3.99 %
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Net assets, end of period (in thousands) $ 121,778 $ 87,907 $ 60,586 $ 48,532 $ 23,534
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Ratios of expenses to average net assets:
After Bennington fee waivers 0.91 %* 0.93 % 1.13 % 1.26 % 1.76 %
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Before Bennington fee waivers 0.91 %* 0.93 % 1.13 % 1.26 % 1.76 %
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Ratio of net investment income to average net assets:
After Bennington fee waivers 0.21 %* 0.56 % 0.97 % 0.97 % 1.02 %
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Before Bennington fee waivers 0.21 %* 0.56 % 0.97 % 0.97 % 0.95 %
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Portfolio turnover rate 59.78 % 131.75 % 81.79 % 99.73 % 57.71 %
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Average commission rate paid (3) $ 0.0331 $ 0.0401
---------- ----------
---------- ----------
</TABLE>
(1) For the six months ended June 30, 1998 (Unaudited).
(2) Total return is calculated assuming a purchase of shares at net asset value
per share on the first day and a sale at net asset value per share on the
last day of each period reported.
Distributions are assumed, for purposes of this calculation, to be
reinvested at the net asset value per share on the respective payment dates
of each Portfolio.
(3) Represents the dollar amount of commissions paid on Portfolio transactions
divided by the total number of shares purchased and sold for which
commissions were charged.
Disclosure not required for periods prior to fiscal year 1997.
* Annualized
See notes to financial statements.
-57-
<PAGE>
ACCESSOR FUNDS, INC.
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE AND INCOME PORTFOLIO
----------------------------------------------------------------------
1998(1) 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 20.88 $ 17.75 $ 15.91 $ 13.01 $ 13.58
---------- ---------- ---------- ---------- ----------
Net investment income 0.12 0.26 0.24 0.33 0.25
Net realized and unrealized gain (loss) on
investments 2.37 5.54 3.51 3.96 (0.51)
---------- ---------- ---------- ---------- ----------
Total from investment operations 2.49 5.80 3.75 4.29 (0.26)
---------- ---------- ---------- ---------- ----------
Distributions from net investment income (0.12) (0.26) (0.24) (0.33) (0.25)
Distributions from capital gains (0.24) (2.41) (1.67) (1.06) (0.05)
Distributions in excess of capital gains - - - - (0.01)
---------- ---------- ---------- ---------- ----------
Total distributions (0.36) (2.67) (1.91) (1.39) (0.31)
---------- ---------- ---------- ---------- ----------
Net Asset Value, end of period $ 23.02 $ 20.88 $ 17.75 $ 15.91 $ 13.01
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Total return (2) 11.97 % 32.94 % 23.94 % 33.25 % (1.93)%
---------- ---------- ---------- ---------- ----------
Net assets, end of period (in thousands) $ 123,829 $ 81,127 $ 36,367 $ 24,915 $ 19,999
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Ratios of expenses to average net assets:
After Bennington fee waivers 1.01 %* 1.05 % 1.21 % 1.40 % 1.77 %
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Before Bennington fee waivers 1.01 %* 1.05 % 1.21 % 1.40 % 1.85 %
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Ratio of net investment income to average net assets:
After Bennington fee waivers 1.16 %* 1.32 % 1.43 % 2.18 % 2.00 %
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Before Bennington fee waivers 1.16 %* 1.32 % 1.43 % 2.18 % 1.92 %
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Portfolio turnover rate 47.75 % 68.14 % 93.54 % 100.88 % 54.26 %
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Average commission rate paid (3) $ 0.0511 $ 0.0500
---------- ----------
---------- ----------
</TABLE>
(1) For the six months ended June 30,1998 (Unaudited).
(2) Total return is calculated assuming a purchase of shares at net asset value
per share on the first day and a sale at net asset value per share on the
last day of each period reported.
Distributions are assumed, for purposes of this calculation, to be
reinvested at the net asset value per share on the respective payment dates
of each Portfolio.
(3) Represents the dollar amount of commissions paid on Portfolio transactions
divided by the total number of shares purchased and sold for which
commissions were charged.
Disclosure not required for periods prior to fiscal year 1997.
* Annualized
See notes to financial statements.
-58-
<PAGE>
ACCESSOR FUNDS, INC.
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL TO MID CAP PORTFOLIO (Advisor class)
----------------------------------------------------------------------
1998(1) 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 21.82 $ 18.82 $ 17.60 $ 14.08 $ 14.79
---------- ---------- ---------- ---------- ----------
Net investment income (loss) - - 0.07 0.06 (0.01)
Net realized and unrealized gain (loss) on
investments 3.19 6.75 4.22 4.42 (0.59)
---------- ---------- ---------- ---------- ----------
Total from investment operations 3.19 6.75 4.29 4.48 (0.60)
---------- ---------- ---------- ---------- ----------
Distributions from net investment income - - (0.07) (0.06) -
Distributions from capital gains (0.71) (3.73) (3.00) (0.90) (0.10)
Distribution in excess of net investment income - (0.02) - - -
Return of capital distributions - - - - (0.01)
---------- ---------- ---------- ---------- ----------
Total distributions (0.71) (3.75) (3.07) (0.96) (0.11)
---------- ---------- ---------- ---------- ----------
Net Asset Value, end of period $ 24.30 $ 21.82 $ 18.82 $ 17.60 $ 14.08
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Total return (2) 14.64 % 36.14 % 24.85 % 31.98 % (4.07)%
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Net assets, end of period (in thousands) $ 201,651 $ 125,221 $ 65,479 $ 49,803 $ 24,148
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Ratios of expenses to average net assets:
After Bennington fee waivers 1.13 %* 1.15 % 1.17 % 1.31 % 1.98 %
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Before Bennington fee waivers 1.13 %* 1.15 % 1.17 % 1.31 % 2.38 %
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Ratio of net investment income to average net assets:
After Bennington fee waivers - %* -% 0.37 % 0.41 % (0.18)%
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Before Bennington fee waivers -%* -% 0.37 % 0.41 % (0.58)%
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Portfolio turnover rate 58.63 % 129.98 % 113.44 % 84.26 % 30.14 %
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Average commission rate paid (3) $ 0.0280 $ 0.0279
---------- ----------
---------- ----------
</TABLE>
(1) For the six months ended June 30, 1998 (Unaudited).
(2) Total return is calculated assuming a purchase of shares at net asset value
per share on the first day and a sale at net asset value per share on the
last day of each period reported.
Distributions are assumed, for purposes of this calculation, to be
reinvested at the net asset value per share on the respective payment dates
of each Portfolio.
(3) Represents the dollar amount of commissions paid on Portfolio transactions
divided by the total number of shares purchased and sold for which
commissions were charged.
Disclosure not required for periods prior to fiscal year 1997.
* Annualized
See notes to financial statements.
-59-
<PAGE>
ACCESSOR FUNDS, INC.
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL TO MID CAP PORTFOLIO (Investor Class)
-------------------------------------------
1998(1)
<S> <C>
Net Asset Value, beginning of period $ 24.44
----------
Net investment income (loss) -
Net realized and unrealized gain (loss) on investments 0.57
----------
Total from investment operations 0.57
----------
Distributions from net investment income -
Distributions from capital gains (0.71)
Distribution in excess of net investment income -
Return of capital distributions -
----------
Total distributions (0.71)
----------
Net Asset Value, end of period $ 24.30
----------
----------
Total return (2) 2.35 %
----------
----------
Net assets, end of period (in thousands) $ 16,254
----------
----------
Ratios of expenses to average net assets:
After Bennington fee waivers 1.63 %*
----------
----------
Before Bennington fee waivers 1.63 %*
----------
----------
Ratio of net investment income to average net assets:
After Bennington fee waivers -%*
----------
----------
Before Bennington fee waivers -%*
----------
----------
Portfolio turnover rate 58.63 %
----------
----------
Average commission rate paid (3) $ 0.0280
----------
----------
</TABLE>
(1) For the period June 24 through June 30, 1998 (Unaudited).
(2) Total return is calculated assuming a purchase of shares at net asset value
per share on the first day and a sale at net asset value per share on the
last day of each period reported.
Distributions are assumed, for purposes of this calculation, to be
reinvested at the net asset value per share on the respective payment dates
of each Portfolio.
(3) Represents the dollar amount of commissions paid on Portfolio transactions
divided by the total number of shares purchased and sold for which
commissions were charged.
Disclosure not required for periods prior to fiscal year 1997.
* Annualized
See notes to financial statements.
-60-
<PAGE>
ACCESSOR FUNDS, INC.
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Equity Portfolio
----------------------------------------------------------------------
1998(1) 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 14.83 $ 13.83 $ 12.55 $ 11.67 $ 12.00
---------- ---------- ---------- ---------- ----------
Net investment income (loss) 0.02 (0.02) (0.06) 0.05 0.01
Net realized and unrealized gain (loss) on
investments 2.51 1.54 1.80 0.83 (0.34)
---------- ---------- ---------- ---------- ----------
Total from investment operations 2.53 1.52 1.74 0.88 (0.33)
---------- ---------- ---------- ---------- ----------
Distributions from capital gains - (0.50) (0.44) - -
Distributions in excess of capital gains - (0.02) (0.02) - -
---------- ---------- ---------- ---------- ----------
Total distributions - (0.52) (0.46) - -
---------- ---------- ---------- ---------- ----------
Net Asset Value, end of period $ 17.36 $ 14.83 $ 13.83 $ 12.55 $ 11.67
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Total return (3) 17.06 % 10.96 % 13.78 % 7.63 % (2.75)%
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Net assets, end of period (in thousands) $ 177,662 $ 151,441 $ 73,019 $ 39,102 $ 7,566
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Ratios of expenses to average net assets:
After Bennington fee waivers 1.52 %* 1.55 % 1.52 % 1.83 % 1.86 %*
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Before Bennington fee waivers 1.52 %* 1.55 % 1.52 % 1.93 % 4.06 %*
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Ratio of net investment income (loss) to average net
assets:
After Bennington fee waivers 0.48 %* (0.20)% (0.26)% 0.10 % 0.38 %*
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Before Bennington fee waivers 0.48 %* (0.20)% (0.26)% -% (1.82)%*
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Portfolio turnover rate 83.01 % 196.66 % 157.66 % 84.85 % 0.82 %
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Average commission rate paid (4) $ 0.0131 $ 0.0100
---------- ----------
---------- ----------
</TABLE>
(1) For the six months ended June 30, 1998 (Unaudited).
(2) For the period of October 3, 1994 (commencement of operations) through
December 31, 1994.
(3) Total return is calculated assuming a purchase of shares at net asset value
per share on the first day and a sale at net asset value per share on the
last day of each period reported.
Distributions are assumed, for purposes of this calculation, to be
reinvested at the net asset value per share on the respective payment dates
of each Portfolio.
(4) Represents the dollar amount of commissions paid on Portfolio transactions
divided by the total number of shares purchased and sold for which
commissions were charged.
Disclosure not required for periods prior to fiscal year 1997.
* Annualized.
See notes to financial statements.
-61-
<PAGE>
ACCESSOR FUNDS, INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE FIXED-INCOME PORTFOLIO
-----------------------------------------------------------------
1998(1) 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 12.19 $ 11.90 $ 12.29 $ 11.04 $ 12.34
-------- -------- -------- -------- --------
Net investment income 0.34 0.71 0.67 0.71 0.65
Net realized and unrealized gain (loss) on investment 0.11 0.29 (0.39) 1.25 (1.28)
-------- -------- -------- -------- --------
Total from investment operations 0.45 1.00 0.28 1.96 (0.63)
-------- -------- -------- -------- --------
Distributions from net investment income (0.34) (0.71) (0.67) (0.71) (0.65)
Distributions from capital gains - - - - (0.02)
-------- -------- -------- -------- --------
Total distributions (0.34) (0.71) (0.67) (0.71) (0.67)
-------- -------- -------- -------- --------
Net Asset Value, end of period $ 12.30 $ 12.19 $ 11.90 $ 12.29 $ 11.04
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Total return (2) 3.75 % 8.62 % 2.56 % 18.26 % (5.24)%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Net assets, end of period (in thousands) $ 45,632 $ 55,197 $ 52,248 $ 36,878 $ 31,405
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Ratios of expenses to average net assets:
After Bennington fee waivers 0.81 %* 0.84 % 0.88 % 0.96 % 1.24 %
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Before Bennington fee waivers 0.81 %* 0.84 % 0.88 % 0.96 % 1.28 %
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Ratio of net investment income to average net assets:
After Bennington fee waivers 5.55 %* 5.88 % 5.79 % 6.07 % 5.65 %
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Before Bennington fee waivers 5.55 %* 5.88 % 5.79 % 6.07 % 5.61 %
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Portfolio turnover rate 63.21 % 84.35 % 94.69 % 187.62 % 255.11 %
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
</TABLE>
(1) For the six months ended June 30, 1998 (Unaudited).
(2) Total return is calculated assuming a purchase of shares at net asset value
per share on the first day and a sale at net asset value per share on the
last day of each period reported. Distributions are assumed, for purposes
of this calculation, to be reinvested at the net asset value per share on
the respective payment dates of each Portfolio.
* Annualized
See notes to financial statements.
-62-
<PAGE>
ACCESSOR FUNDS, INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT-INTERMEDIATE FIXED-INCOME PORTFOLIO
-----------------------------------------------------------------
1998(1) 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 12.27 $ 12.16 $ 12.32 $ 11.62 $ 12.29
-------- -------- -------- -------- --------
Net investment income 0.31 0.64 0.59 0.60 0.50
-------- -------- -------- -------- --------
Net realized and unrealized gain (loss) on investments 0.02 0.11 (0.16) 0.70 (0.67)
-------- -------- -------- -------- --------
Total from investment operations 0.33 0.75 0.43 1.30 (0.17)
-------- -------- -------- -------- --------
Distributions from net investment income (0.31) (0.64) (0.59) (0.60) (0.50)
-------- -------- -------- -------- --------
Total distributions (0.31) (0.64) (0.59) (0.60) (0.50)
-------- -------- -------- -------- --------
Net Asset Value, end of period $ 12.29 $ 12.27 $ 12.16 $ 12.32 $ 11.62
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Total return (2) 2.69 % 6.33 % 3.63 % 11.42 % (1.42)%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Net assets, end of period (in thousands) $ 47,055 $ 40,942 $ 36,701 $ 35,272 $ 32,233
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Ratios of expenses to average net assets:
After Bennington fee waivers 0.84 %* 0.86 % 0.93 % 0.94 % 1.18 %
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Before Bennington fee waivers 0.84 %* 0.86 % 0.93 % 0.94 % 1.22 %
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Ratio of net investment income to average net assets:
After Bennington fee waivers 5.07 %* 5.20 % 4.89 % 4.99 % 4.17 %
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Before Bennington fee waivers 5.07 %* 5.20 % 4.89 % 4.99 % 4.13 %
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Portfolio turnover rate 11.09 % 53.30 % 31.12 % 41.93 % 36.54 %
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
</TABLE>
(1) For the six months ended June 30, 1998 (Unaudited).
(2) Total return is calculated assuming a purchase of shares at net asset value
per share on the first day and a sale at net asset value per share on the
last day of each period reported. Distributions are assumed, for purposes
of this calculation, to be reinvested at the net asset value per share on
the respective payment dates of each Portfolio.
* Annualized
See notes to financial statements.
-63-
<PAGE>
ACCESSOR FUNDS, INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MORTGAGE SECURITIES PORTFOLIO
-----------------------------------------------------------------
1998(1) 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 12.60 $ 12.23 $ 12.38 $ 11.36 $ 12.17
-------- -------- -------- -------- --------
Net investment income 0.34 0.72 0.73 0.76 0.60
Net realized and unrealized gain (loss) on investments 0.07 0.42 (0.15) 1.02 (0.80)
-------- -------- -------- -------- --------
Total from investment operations 0.41 1.14 0.58 1.78 (0.20)
-------- -------- -------- -------- --------
Distributions from net investment income (0.34) (0.72) (0.73) (0.76) (0.60)
Distributions from capital gains (0.03) (0.05) - - (0.01)
-------- -------- -------- -------- --------
Total distributions (0.37) (0.77) (0.73) (0.76) (0.61)
-------- -------- -------- -------- --------
Net Asset Value, end of period $ 12.64 $ 12.60 $ 12.23 $ 12.38 $ 11.36
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Total return (2) 3.30 % 9.53 % 4.95 % 16.03 % (1.65)%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Net assets, end of period (in thousands) $135,979 $109,747 $ 73,862 $ 49,830 $ 32,975
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Ratios of expenses to average net assets:
After Bennington fee waivers 0.85 %* 0.84 % 0.95 % 1.03 % 1.31 %
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Before Bennington fee waivers 0.85 %* 0.84 % 0.95 % 1.03 % 1.35 %
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Ratio of net investment income to average net assets:
After Bennington fee waivers 5.53 %* 5.93 % 6.08 % 6.41 % 5.18 %
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Before Bennington fee waivers 5.53 %* 5.93 % 6.08 % 6.41 % 5.14 %
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Portfolio turnover rate 132.31 % 211.66 % 356.23 % 422.56 % 603.51 %
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
</TABLE>
(1) For the six months ended June 30, 1998 (Unaudited).
(2) Total return is calculated assuming a purchase of shares at net asset value
per share on the first day and a sale at net asset value per share on the
last day of each period reported. Distributions are assumed, for purposes
of this calculation, to be reinvested at the net asset value per share on
the respective payment dates of each Portfolio.
* Annualized
See notes to financial statements.
-64-
<PAGE>
ACCESSOR FUNDS, INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT MONEY PORTFOLIO
-------------------------------------------------------------------
1998(1) 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Net investment income 0.02 0.05 0.05 0.05 0.04
-------- -------- -------- -------- --------
Distributions from net investment income (0.02) (0.05) (0.05) (0.05) (0.04)
-------- -------- -------- -------- --------
Net Asset Value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Total return (2) 2.48 % 5.07 % 4.78 % 5.33 % 3.70 %
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Net assets, end of period (in thousands) $ 48,350 $ 50,910 $ 61,672 $ 41,882 $ 12,008
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Ratios of expenses to average net assets:
After Bennington fee waivers 0.56 %* 0.54 % 0.59 % 0.53 % 0.45 %
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Before Bennington fee waivers 0.56 %* 0.54 % 0.59 % 0.78 % 1.27 %
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Ratio of net investment income to average net assets:
After Bennington fee waivers 4.94 %* 4.96 % 4.73 % 5.14 % 3.51 %
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Before Bennington fee waivers 4.94 %* 4.96 % 4.73 % 4.89 % 2.69 %
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
</TABLE>
(1) For the six months ended June 30, 1998 (Unaudited).
(2) Total return is calculated assuming a purchase of shares at net asset value
per share on the first day and a sale at net asset value per share on the
last day of each period reported. Distributions are assumed, for purposes
of this calculation, to be reinvested at the net asset value per share on
the respective payment dates of each Portfolio.
* Annualized.
See notes to financial statements.
-65-
<PAGE>
ACCESSOR FUNDS, INC.
- --------------------------------------------------------------------------------
DIRECTORS AND OFFICERS
George G. Cobean, III, Director
Geoffrey C. Cross, Director
J. Anthony Whatley, III, Director, President and Principal Executive Officer
Ravindra A. Deo, Treasurer, Vice President, Principal Financial and Accounting
Officer
Robert J. Harper, Vice President
John P. Schmick, Vice President, Assistant Treasurer and Chief Compliance
Officer
Christine J. Stansbery, Secretary
Linda V. Whatley, Vice President
- --------------------------------------------------------------------------------
INVESTMENT ADVISOR AND ADMINISTRATOR
Bennington Capital Management L.P.
U. S. Bank Centre; 1420 5th Avenue; Suite 3130
Seattle, Washington 98101
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CUSTODIAN
The Fifth Third Bank
Fifth Third Center
38 Fountain Square Plaza
Cincinnati, OH 45263
- --------------------------------------------------------------------------------
TRANSFER AGENT
Bennington Capital Management L.P.
P.O. Box 1748
Seattle, Washington 98111
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LEGAL COUNSEL
Mayer, Brown & Platt
1675 Broadway
New York, New York 10019
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS
Deloitte & Touche LLP
2 World Financial Center
New York, New York 10281
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