<PAGE>
ACCESSOR
FUNDS INC.
REPORT
THE VALUE OF
TIME-HONORED
TRADITIONS
COMBINED WITH
LEADING-EDGE
INVESTMENT
TECHNOLOGY
ANNUAL
REPORT
DECEMBER 31, 1997
(AUDITED)
PUBLISHED BY
BENNINGTON CAPITAL MANAGEMENT L.P.
<PAGE>
[LETTERHEAD]
Dear Shareholder:
It is our pleasure to review 1997 with you, the shareholders of Accessor
Funds, Inc. (the "Accessor Funds") family of Portfolios. We would also like to
take this opportunity to thank you for your investment in the Portfolios, and to
express our confidence that the Accessor Funds offer you the opportunity to
maximize your investment returns.
There are currently eight Portfolios of the Accessor Funds in operation. The
objectives of the Portfolios differ, and together they provide a broad spectrum
of equity and fixed-income investment choices. Each of the Portfolios, except
the U.S. Government Money Portfolio, hires external money managers specializing
in a particular asset class, and, after five calendar quarters, provides for
them to be paid on a performance fee basis. The performance fee is based on the
money manager's performance as compared to an unmanaged index of securities with
similar risk and investment characteristics. For a complete description of the
fee structure, the manager and money managers, and the indices please refer to
the Prospectuses and the Statement of Additional Information of Accessor Funds.
The first of the Portfolios commenced operations on April 9, 1992, and seven
of the eight Portfolios now have over five years of investment results. The
International Equity portfolio has a little over three years of investment
results.
With three domestic equity, one international equity and four fixed-income
investment options, shareholders in the Accessor Funds have a wide range of risk
and return alternatives to structure an investment solution that is designed to
meet their needs precisely. A key feature of the Accessor Funds is that they
attempt to provide benchmark risks so that shareholders can more accurately
judge the risks they bear while investing in the various Portfolios of the
Accessor Funds. The graphic below shows the annualized standard deviation (a
measure of variability, or risk) using monthly performance data since inception
of each Portfolio. The standard deviation of the Portfolios is compared, with
the exception of the U.S. Government Money Portfolio, to that of the index that
the performance of the money manager is measured against for the same time
period.
<PAGE>
ACCESSOR FUNDS, INC.
[GRAPH]
We believe that there are two important conclusions that can be drawn from
the chart above. The first is the relative risk ranking of the Portfolios of
the Accessor Funds. The higher the standard deviation, the higher the risk in
terms of loss over a quarter or a year. The second, perhaps more subtle
conclusion, is that each Portfolio's risk has been very close to the risk of the
benchmark index against which we compare the money manager's performance. We
believe that this structure allows the Accessor Funds' shareholders to judge the
risks they are assuming more accurately than can shareholders of most investment
companies. The benchmark indices we use, which are referenced in the following
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE, are publicly
available. In addition, large quantities of data are available about the
benchmark indices' historical risks. We believe it important that investors
know the risks they assume, before they invest.
The past year has seen a sharp increase in the variability of returns.
International stocks performed very poorly, with the high growth economies of
South East Asia collapsing due to a slowing in growth coupled with excessive
leverage against the dollar. The International Equity Portfolio, which has
outperformed its index for the past year by a wide margin, has seen its risk
level increase dramatically over the past year. Fixed-income investments have
benefited from the turmoil in Asia, as investors around the world fled to the
safety of U.S. Government bonds. Interest rates fell dramatically throughout
the year, reaching lows not seen since the government started regular auctions.
U.S. stocks continued to do very well, although domestic stocks gave up some
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<PAGE>
ACCESSOR FUNDS, INC.
of their gains in the fourth quarter as worries of spillover from the Asian
collapse gained ground.
During the year we became increasingly unhappy with the performance of the
Money Manager of the Growth Portfolio, State Street Global Advisors. The
absolute returns for the Growth Portfolio were stellar, and the Growth Portfolio
was very highly rated by Morningstar and Lipper, two widely followed mutual fund
rating services. Our dissatisfaction was caused by the Growth Portfolio
trailing its benchmark, the S&P/Barra Growth Index over several quarters. After
conducting a series of reviews with the Money Manager, we hired a third party
search firm, and proceeded with a Money Manager search. Geewax Terker and
Company commenced managing the Growth Portfolio as of July 21, 1997, and had one
complete quarter of performance through year-end. We believe that the Money
Manager will manage the Growth Portfolio so as to more closely track its
benchmark index, and are confident that Geewax, Terker and Company will strive
to add value to the Growth Portfolio vis a vis its benchmark index so as to earn
the maximum incentive fee.
We would like to end by saying that we are continuing to search for
additional tools to improve Portfolio performance, and are also constantly
evaluating the ones we currently use. We look forward to serving you, the
shareholders, for many years to come.
/s/ Ravindra A. Deo
Ravindra A. Deo
Treasurer
February 28, 1998
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<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE
FOR THE FISCAL YEAR ENDING DECEMBER 31, 1997
ACCESSOR FUNDS, INC.
The Portfolios of Accessor Funds are designed to provide the tools
investors need to meet a variety of investment needs. The advantage of Accessor
Funds' approach is that investors can customize their individual portfolios to
best suit their different investment objectives and risk tolerances. Each
Portfolio is not designed to be a solution by itself, and therefore each
Portfolio, except the U.S. Government Money Portfolio, may take more risks than
a comparable portfolio otherwise might.
All the Portfolios have been designed by Bennington Capital Management L.
P. (the "Manager"), which provides or oversees all general management,
investment advisory, administration and portfolio management functions. The
Manager selects, subject to the review and approval of the Board of Directors of
Accessor Funds, one or more investment management organizations (individually a
"Money Manager" and collectively, "the Money Managers"). Each of the Money
Managers specializes in managing a particular type of asset and makes
substantially all of the investment decisions for the assets of the Portfolio it
manages. Each Portfolio, except the U.S. Government Money Portfolio, is
designed to match certain characteristics, typically measured by the risk
behavior of a recognized and publicly available index. The Money Managers
attempt to structure their respective Portfolios to outperform the relevant
index, while maintaining essentially the same risk as the index. This also
means that derivative instruments are used, when appropriate, to ensure that the
Portfolios match the risk characteristics of the underlying indices, and not to
place leveraged bets on a particular market forecast or belief. For a further
discussion of derivatives, please refer to the prospectuses and Statement of
Additional Information of Accessor Funds.
In the pages that follow, we compare the performance of the various
Portfolios to an applicable index using data from complete calendar months since
inception. The performance numbers in the tables below the graphs show
performance since inception date, which includes data for partial months not
shown in the graph.
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The portfolio risk information quoted is historical. Future risk will
fluctuate, and past risk is not necessarily indicative of future risk. For
more complete information about Accessor Funds, including fees and expenses,
please call 1-800-759-3504 for the prospectuses. Please read them carefully
before you invest.
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<PAGE>
ACCESSOR FUNDS, INC.
GROWTH PORTFOLIO (the "Growth Portfolio," or the "Portfolio")
- --------------------------------------------------------------------------------
The Growth Portfolio commenced operations on August 25, 1992. The Growth
Portfolio seeks capital growth through investing primarily in equity securities
with greater than average growth characteristics selected from the 500 issuers
which make up the Standard & Poor's 500 Composite Stock Price Index. The
Portfolio is designed to have risk characteristics similar to its benchmark, the
S&P/BARRA Growth Index (the "Index"). The Money Manager of the Portfolio is
Geewax Terker & Company.
Total annualized returns for the five years and inception periods ended December
31, 1997 were 20.56% and 21.21%, respectively. For the one year ended December
31, 1997, the Portfolio had a total return of 33.24% as compared to 36.53% for
the S&P/BARRA Growth Index.
Certain factors over the past year contributed to the difference in the one year
performance. In July, the Money Manager of the Growth Portfolio was changed
from State Street Global Advisors to Geewax Terker & Company, primarily due to
dissatisfaction with State Street's performance trailing its benchmark. Since
Geewax Terker & Company took over in mid-year, the Portfolio has gained some
ground. However the Portfolio has lagged its benchmark in overall terms. This
was due in large part to the technology sector (a major component of the
Portfolio) underperforming during the 4th Quarter. Also, due to scares of the
"Asian flu," investment dollars seemed to flock toward pharmaceuticals, which
performed well during this same period. The Portfolio was underweighted in both
the pharmaceutical sector and in the perceived stability of healthcare
companies.
The stock market's Bull run continued through 1997 with barely a pause. The
Portfolio has participated in the favorable returns in the market and
maintained characteristics consistent with the Index.
ACCESSOR GROWTH
The graph shown below measures the performance of a hypothetical $10,000
investment in the Growth Portfolio against the S&P/BARRA Growth Index from
inception of the Portfolio through December, 1997. The data points from the
graph are as follows:
COMPARISON OF $10,000 INVESTMENT IN THE GROWTH PORTFOLIO AND THE
S&P/BARRA GROWTH INDEX
[Graph omitted]
DATE 10,000 IN FUND 10,000 IN INDEX
31-Aug-92 $10,000 $10,000
30-Sep-92 $10,089 $10,118
30-Oct-92 $10,345 $10,270
30-Nov-92 $10,933 $10,679
31-Dec-92 $10,892 $10,763
29-Jan-93 $11,017 $10,633
26-Feb-93 $10,909 $10,547
31-Mar-93 $11,446 $10,695
30-Apr-93 $11,087 $10,202
28-May-93 $11,438 $10,565
30-Jun-93 $11,378 $10,475
31-Jul-93 $11,114 $10,259
31-Aug-93 $11,701 $10,634
30-Sep-93 $11,726 $10,471
29-Oct-93 $12,179 $10,861
30-Nov-93 $12,222 $10,853
31-Dec-93 $12,440 $10,929
31-Jan-94 $12,615 $11,163
28-Feb-94 $12,413 $10,963
31-Mar-94 $11,969 $10,456
30-Apr-94 $12,039 $10,504
31-May-94 $12,259 $10,675
30-Jun-94 $12,059 $10,447
29-Jul-94 $12,342 $10,781
31-Aug-94 $12,996 $11,356
30-Sep-94 $12,810 $11,194
31-Oct-94 $12,996 $11,455
30-Nov-94 $12,659 $11,079
31-Dec-94 $12,936 $11,271
31-Jan-95 $13,233 $11,550
28-Feb-95 $13,710 $12,001
31-Mar-95 $14,118 $12,376
28-Apr-95 $14,650 $12,698
31-May-95 $15,281 $13,153
30-Jun-95 $15,747 $13,656
31-Jul-95 $16,273 $14,092
31-Aug-95 $16,137 $14,046
29-Sep-95 $16,710 $14,739
31-Oct-95 $16,937 $14,857
30-Nov-95 $17,410 $15,392
29-Dec-95 $17,375 $15,566
31-Jan-96 $18,051 $16,161
29-Feb-96 $18,388 $16,308
29-Mar-96 $18,283 $16,241
30-Apr-96 $18,709 $16,556
31-May-96 $18,981 $17,165
28-Jun-96 $19,053 $17,379
31-Jul-96 $18,123 $16,578
30-Aug-96 $18,509 $16,823
30-Sep-96 $19,557 $17,991
31-Oct-96 $20,063 $18,381
29-Nov-96 $21,512 $19,754
31-Dec-96 $20,821 $19,298
31-Jan-97 $22,304 $20,809
28-Feb-97 $22,431 $20,984
31-Mar-97 $21,419 $19,987
30-Apr-97 $22,938 $21,600
30-May-97 $24,275 $22,881
30-Jun-97 $25,557 $24,041
31-Jul-97 $27,497 $25,945
29-Aug-97 $25,751 $24,220
30-Sep-97 $27,051 $25,455
31-Oct-97 $26,142 $24,689
28-Nov-97 $27,554 $26,028
31-Dec-97 $27,741 $26,348
HISTORICAL RATES OF RETURN **
PERIODS ENDING DECEMBER 31, 1997
One Year . . . . 33.24%
Five Years . . . 20.56%
*Inception. . . . 21.21%
* Inception assumes initial investment on August 25, 1992. S&P/BARRA Growth
Index comparison for the initial investment began on August 31, 1992.
** Annualized.
PERFORMANCE DATA QUOTED IS HISTORICAL AND ASSUMES REINVESTMENT OF ALL DIVIDENDS
AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN WHEN
PURCHASED. PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
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<PAGE>
ACCESSOR FUNDS, INC.
VALUE AND INCOME PORTFOLIO (the "Value and Income Portfolio," or the
"Portfolio")
- --------------------------------------------------------------------------------
The Value and Income Portfolio commenced operations on August 25, 1992. The
Value and Income Portfolio seeks generation of current income and capital growth
by investing primarily in income-producing equity securities selected from the
500 issuers which make up the Standard & Poor's 500 Composite Stock Price Index.
The Portfolio is designed to have risk characteristics similar to its current
benchmark, the S&P/BARRA Value Index (the "Index"). Martingale Asset
Management, L.P. is the Money Manager of the Portfolio.
Total annualized returns for the five years and inception periods ended December
31, 1997 were 19.82% and 19.66%, respectively. For the one year ended December
31, 1997, the Portfolio had a total return of 32.94% as compared to 29.96% for
the S&P/BARRA Value Index.
The Value and Income Portfolio performed well against its index. The
Portfolio stays as close to fully invested as possible through cash
equitization methods by entering into stock index futures contracts. The
year ended December 31, 1997 was a very successful year for the Portfolio.
The gains relative to the Index were almost exclusively the result of
successful stock selection. The strategy of the Money Manager is to find
stocks that are attractive relative to other companies. To find these
"attractive" stocks, the Money Manager uses a valuation system that ranks
companies using five different factors. The more significant of these
factors include value and growth components such that highly ranked
securities will be value companies that have reasonable growth prospects.
This method of ranking companies was instrumental to the Portfolio's
performance. The Portfolio has participated in the favorable returns in the
market and maintained characteristics consistent with the Index.
The stock market's Bull run continued through 1997 with barely a pause. Market
volatility throughout the year continued. Many record highs were set in the
market as well as the S&P 500 Composite Index experiencing its largest recent
daily decline in October.
ACCESSOR VALUE & INCOME
The graph shown below measures the performance of a hypothetical $10,000
investment in the Value and Income Portfolio against the S&P/BARRA Value
Index from inception of the Portfolio through December, 1997. The data points
from the graph are as follows:
COMPARISON OF $10,000 INVESTMENT IN THE VALUE AND INCOME PORTFOLIO AND THE
S&P/BARRA VALUE INDEX
[Graph omitted]
DATE 10,000 IN FUND 10,000 IN INDEX
31-Aug-92 $10,000 $10,000
30-Sep-92 $10,056 $10,110
30-Oct-92 $9,973 $10,027
30-Nov-92 $10,331 $10,300
31-Dec-92 $10,539 $10,493
29-Jan-93 $10,841 $10,775
26-Feb-93 $11,176 $11,146
31-Mar-93 $11,462 $11,454
30-Apr-93 $11,318 $11,408
28-May-93 $11,503 $11,621
30-Jun-93 $11,645 $11,775
31-Jul-93 $11,730 $11,921
31-Aug-93 $12,120 $12,388
30-Sep-93 $12,044 $12,383
29-Oct-93 $12,146 $12,450
30-Nov-93 $11,942 $12,227
31-Dec-93 $12,087 $12,435
31-Jan-94 $12,577 $13,014
28-Feb-94 $12,163 $12,543
31-Mar-94 $11,739 $12,028
30-Apr-94 $11,828 $12,282
31-May-94 $11,918 $12,485
30-Jun-94 $11,654 $12,140
29-Jul-94 $11,970 $12,550
31-Aug-94 $12,285 $12,905
30-Sep-94 $11,920 $12,451
31-Oct-94 $12,137 $12,722
30-Nov-94 $11,702 $12,207
31-Dec-94 $11,850 $12,357
31-Jan-95 $12,123 $12,692
28-Feb-95 $12,597 $13,184
31-Mar-95 $12,928 $13,547
28-Apr-95 $13,304 $13,993
31-May-95 $13,963 $14,615
30-Jun-95 $13,995 $14,726
31-Jul-95 $14,382 $15,235
31-Aug-95 $14,557 $15,364
29-Sep-95 $14,958 $15,899
31-Oct-95 $14,866 $15,651
30-Nov-95 $15,542 $16,471
29-Dec-95 $15,791 $16,927
31-Jan-96 $16,256 $17,433
29-Feb-96 $16,455 $17,597
29-Mar-96 $16,758 $18,009
30-Apr-96 $17,017 $18,191
31-May-96 $17,247 $18,465
28-Jun-96 $17,142 $18,376
31-Jul-96 $16,437 $17,601
30-Aug-96 $17,029 $18,086
30-Sep-96 $17,760 $18,861
31-Oct-96 $18,466 $19,500
29-Nov-96 $19,922 $20,992
31-Dec-96 $19,571 $20,650
31-Jan-97 $20,630 $21,599
28-Feb-97 $20,751 $21,757
31-Mar-97 $19,847 $21,013
30-Apr-97 $20,809 $21,801
30-May-97 $22,160 $23,168
30-Jun-97 $22,920 $24,053
31-Jul-97 $25,040 $25,977
29-Aug-97 $24,106 $24,803
30-Sep-97 $25,673 $26,256
31-Oct-97 $24,777 $25,290
28-Nov-97 $25,493 $26,254
31-Dec-97 $26,018 $26,837
HISTORICAL RATES OF RETURN **
PERIODS ENDING DECEMBER 31, 1997
One Year . . . . 32.94%
Five Year. . . . 19.82%
*Inception. . . . 19.66%
* Inception assumes initial investment on August 25, 1992. S&P/BARRA Value
Index comparison for the initial investment began on August 31, 1992.
** Annualized.
PERFORMANCE DATA QUOTED IS HISTORICAL AND ASSUMES REINVESTMENT OF ALL DIVIDENDS
AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN WHEN
PURCHASED. PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
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ACCESSOR FUNDS, INC.
SMALL TO MID CAP PORTFOLIO (the "Small to Mid Cap Portfolio," or the
"Portfolio")
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The Small to Mid Cap Portfolio commenced operations on August 25, 1992. The
Portfolio seeks capital growth through investing primarily in equity securities
of small to medium capitalization issuers. The Portfolio is designed to have
risk characteristics similar to its benchmark, the Wilshire 4500 Index. In
September 1995 the investment objective of the Portfolio was changed by a vote
of the shareholders. The performance for periods prior to October 1995 ascribe
performance of the Portfolio before the restatement of the investment objective.
The BARRA Institutional Small Index was used and is provided in the first graph
only for comparative depiction of the prior period. The Money Manager of the
Portfolio is Symphony Asset Management, Inc.
Total annualized returns for the five years and inception periods ended December
31, 1997 were 19.74% and 21.10%, respectively. For the one year ended December
31, 1997, the Portfolio had a total return of 36.14% as compared to 25.69% for
the Wilshire 4500 Index.
The Portfolio performed better than expected during the past year and can be
attributed to several factors. Those factors included the ability of the Money
Manager's strategy to identify fast growing companies within each sector that
appeared to be reasonably priced relative to their peers. The value orientation
of the Portfolio relative to the benchmark coupled with the higher than average
growth characteristics of certain stocks contributed to the favorable difference
in performance. The main contributor to the performance was in identifying
undervalued companies within a given economic sector comparable to the Wilshire
4500 Index.
ACCESSOR SMALL TO MID CAP
The graph shown below measures the performance of a hypothetical $10,000
investment in the Small to Mid Cap Portfolio against the S&P/BARRA
Institutional Small Index from inception of the Portfolio through December,
1997. The data points from the graph are as follows:
COMPARISON OF $10,000 INVESTMENT IN THE SMALL TO MID CAP PORTFOLIO AND
THE S&P/BARRA INSTITUTIONAL SMALL INDEX
[Graph omitted]
DATE 10,000 IN FUND 10,000 IN INDEX
31-Aug-92 $ 10,000.00 $ 10,000.00
30-Sep-92 $ 10,096.22 $ 10,196.00
30-Oct-92 $ 10,408.28 $ 10,458.04
30-Nov-92 $ 11,091.44 $ 11,207.88
31-Dec-92 $ 11,452.32 $ 11,596.79
29-Jan-93 $ 11,764.76 $ 11,966.73
26-Feb-93 $ 11,587.48 $ 11,784.84
31-Mar-93 $ 11,985.81 $ 12,204.38
30-Apr-93 $ 11,537.84 $ 11,780.88
28-May-93 $ 11,960.46 $ 12,179.08
30-Jun-93 $ 12,027.41 $ 12,269.20
30-Jul-93 $ 12,171.30 $ 12,487.59
31-Aug-93 $ 12,619.89 $ 13,045.79
30-Sep-93 $ 12,841.79 $ 13,394.11
29-Oct-93 $ 13,036.63 $ 13,786.56
30-Nov-93 $ 12,663.92 $ 13,308.17
31-Dec-93 $ 13,100.62 $ 13,722.05
31-Jan-94 $ 13,499.23 $ 14,077.45
28-Feb-94 $ 13,304.36 $ 13,949.35
31-Mar-94 $ 12,629.69 $ 13,200.27
29-Apr-94 $ 12,691.72 $ 13,164.63
31-May-94 $ 12,452.42 $ 13,059.31
30-Jun-94 $ 12,113.33 $ 12,734.13
29-Jul-94 $ 12,299.82 $ 12,983.72
31-Aug-94 $ 12,957.00 $ 13,675.75
30-Sep-94 $ 12,903.72 $ 13,675.75
31-Oct-94 $ 12,877.07 $ 13,625.15
30-Nov-94 $ 12,335.35 $ 13,107.40
30-Dec-94 $ 12,567.59 $ 13,319.74
31-Jan-95 $ 12,505.10 $ 13,278.45
28-Feb-95 $ 12,879.99 $ 13,808.26
31-Mar-95 $ 13,123.79 $ 14,100.99
28-Apr-95 $ 13,400.73 $ 14,381.60
31-May-95 $ 13,615.15 $ 14,631.84
30-Jun-95 $ 14,318.95 $ 15,452.69
31-Jul-95 $ 15,314.19 $ 16,427.75
31-Aug-95 $ 15,538.34 $ 16,815.45
29-Sep-95 $ 15,915.92 $ 17,227.42
HISTORICAL RATES OF RETURN **
PERIODS ENDING DECEMBER 31, 1997
One Year . . . . 36.14%
Five Years . . . 19.74%
*Inception. . . . 21.10%
* Inception assumes initial investment on August 25, 1992. BARRA
Institutional Small Index comparison for the initial investment through the
period ended September 15, 1995 began on August 31, 1992. The investment
objective and comparable index was changed by a vote of the Portfolio's
shareholders. Beginning in September 1995, the Wilshire 4500-Registered
Trademark-Index is used as the Portfolio's benchmark.
** Annualized.
PERFORMANCE DATA QUOTED IS HISTORICAL AND ASSUMES REINVESTMENT OF ALL DIVIDENDS
AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN WHEN
PURCHASED. PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
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<PAGE>
SMALL TO MID CAP PORTFOLIO (the "Small to Mid Cap Portfolio," or the
"Portfolio")
- --------------------------------------------------------------------------------
(CONTINUED)
ACCESSOR SMALL TO MID CAP
The graph shown below measures the performance of a hypothetical $10,000
investment in the Small to Mid Cap Portfolio against the S&P/BARRA
Institutional Small Index from inception of the Portfolio through December,
1997. The data points from the graph are as follows:
COMPARISON OF $10,000 INVESTMENT IN THE SMALL TO MID CAP PORTFOLIO AND
THE S&P/BARRA INSTITUTIONAL SMALL INDEX
[Graph omitted]
DATE 10,000 IN FUND 10,000 IN INDEX
29-Sep-95 $ 10,000.00 $ 10,000.00
31-Oct-95 $ 9,667.23 $ 9,732.00
30-Nov-95 $ 10,135.13 $ 10,145.32
29-Dec-95 $ 10,420.94 $ 10,273.35
31-Jan-96 $ 10,379.25 $ 10,379.06
29-Feb-96 $ 10,811.03 $ 10,716.38
29-Mar-96 $ 10,956.98 $ 10,880.24
30-Apr-96 $ 11,471.96 $ 11,386.39
31-May-96 $ 11,732.37 $ 11,752.12
28-Jun-96 $ 11,478.95 $ 11,383.45
31-Jul-96 $ 10,787.92 $ 10,528.44
30-Aug-96 $ 11,582.99 $ 11,097.29
30-Sep-96 $ 12,215.42 $ 11,626.30
31-Oct-96 $ 12,270.39 $ 11,454.58
29-Nov-96 $ 12,894.95 $ 11,938.19
31-Dec-96 $ 13,009.72 $ 12,046.00
31-Jan-97 $ 13,362.28 $ 12,434.84
28-Feb-97 $ 12,996.16 $ 12,171.97
31-Mar-97 $ 12,472.41 $ 11,535.98
30-Apr-97 $ 12,950.10 $ 11,564.48
30-May-97 $ 14,098.78 $ 12,715.14
30-Jun-97 $ 14,690.93 $ 13,317.84
31-Jul-97 $ 16,041.02 $ 14,234.64
31-Aug-97 $ 16,180.58 $ 14,363.89
30-Sep-97 $ 17,651.39 $ 15,359.45
31-Oct-97 $ 16,943.57 $ 14,774.41
28-Nov-97 $ 17,223.14 $ 14,778.55
31-Dec-97 $ 17,714.00 $ 15,140.18
HISTORICAL RATES OF RETURN **
PERIODS ENDING DECEMBER 31, 1997
One Year . . . . 36.14%
Five Years . . . 19.74%
*Inception. . . . 21.10%
* Inception assumes initial investment on August 25, 1992. BARRA
Institutional Small Index comparison for the initial investment through the
period ended September 15, 1995 began on August 31, 1992. The investment
objective and comparable index was changed by a vote of the Portfolio's
shareholders. Beginning in September 1995, the Wilshire 4500-Registered
Trademark-Index is used as the Portfolio's benchmark.
** Annualized.
PERFORMANCE DATA QUOTED IS HISTORICAL AND ASSUMES REINVESTMENT OF ALL DIVIDENDS
AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN WHEN
PURCHASED. PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
-8-
<PAGE>
ACCESSOR FUNDS, INC.
INTERNATIONAL EQUITY PORTFOLIO (the "International Equity Portfolio," or the
"Portfolio")
- --------------------------------------------------------------------------------
The International Equity Portfolio commenced operations on October 3, 1994. The
International Equity Portfolio seeks capital growth by investing primarily in
equity securities of companies domiciled in countries other than the United
States and traded in foreign stock exchanges. The Portfolio is designed to have
risk characteristics similar to its benchmark, the Morgan Stanley Capital
International ("MSCI") EAFE-Registered Trademark-+EMF Index (the "Index"). The
Money Manager of the Portfolio is Nicholas-Applegate Capital Management.
Total annualized return for the period of inception through December 31, 1997
was 8.96%. For the one year ended December 31, 1997, the Portfolio had a total
return of 10.96% as compared to 1.64% for the benchmark. The performance for
periods prior to May 1996 and running past April 1996 is linked for both the
MSCI EAFE-Registered Trademark-+EMF and MSCI EAFE Indices. The MSCI EAFE Index
for periods prior to May 1996 is provided in the first graph for comparative
depiction of the prior period.
During 1997, many factors contributed to the Portfolio's outperformance of the
MSCI EAFE+EMF Index. Those factors included such things as sound stock
selection among developed European stocks; the fundamental strength of the
Mexican security holdings; strong performing technology and energy sectors; and,
perhaps most significant, the Portfolio's reduced exposure to Asia.
European corporations benefited from cost reductions through restructuring,
increasing demand due to consumer-led economic revival, particularly in France,
and the perceived safety and reliability of larger more liquid international
stocks. A consumer-led recovery, continued deregulation, and strong business
fundamentals fueled gains in Mexican stocks. The Mexican holdings in the
Portfolio delivered a significant portion of the returns against those generated
by the Index.
The stock selection process among global technology issues played a key role in
boosting the Portfolio's performance throughout the period. Increased demand in
the semiconductor industry fueled global technology gains. The Portfolio's
reduced exposure to Asia reduced the impact of the currency crisis in those
regions. The Money Manager's fundamental approach identified the changes early
on and were able to sell out of Asia and avoid most of the declines felt by the
markets. The Money Manager continued to seek value in securities of targeted
emerging markets countries.
ACCESSOR INTERNATIONAL EQUITY
The graph shown below measures the performance of a hypothetical $10,000
investment in the International Equity Portfolio against the Morgan Stanley
Capital International EAFE-Registered Trademark-+EMF Index from inception of
the Portfolio through December, 1997. The data points from the graph are as
follows:
COMPARISON OF $10,000 INVESTMENT IN THE INTERNATIONAL EQUITY PORTFOLIO AND THE
MORGAN STANLEY CAPITAL INTERNATIONAL EAFE-REGISTERED TRADEMARK-+EMF INDEX
[Graph omitted]
DATE 10,000 IN FUND 10,000 IN INDEX
31-Oct-94 $ 10,000.00 $ 10,000.00
30-Nov-94 $ 9,490.55 $ 9,519.00
31-Dec-94 $ 9,589.16 $ 9,578.59
31-Jan-95 $ 9,030.41 $ 9,210.77
28-Feb-95 $ 8,997.54 $ 9,183.14
31-Mar-95 $ 9,211.18 $ 9,755.25
28-Apr-95 $ 9,482.34 $ 10,122.05
31-May-95 $ 9,342.65 $ 10,001.59
30-Jun-95 $ 9,293.35 $ 9,825.57
31-Jul-95 $ 9,942.48 $ 10,437.70
31-Aug-95 $ 10,032.86 $ 10,040.02
29-Sep-95 $ 10,221.48 $ 10,235.80
31-Oct-95 $ 9,958.55 $ 9,960.46
30-Nov-95 $ 10,090.01 $ 10,304.09
29-Dec-95 $ 10,320.06 $ 10,719.35
31-Jan-96 $ 10,303.55 $ 10,763.30
29-Feb-96 $ 10,533.32 $ 10,799.89
29-Mar-96 $ 10,886.18 $ 11,028.85
30-Apr-96 $ 11,312.92 $ 11,349.79
HISTORICAL RATES OF RETURN **
PERIODS ENDING DECEMBER 31, 1997
One Year . . . . 10.96%
*Inception. . . . 8.96%
* Inception assumes initial investment on October 3, 1994. MSCI
EAFE-Registered Trademark- Index comparison for the initial investment
through the period ended April 30, 1996 began on October 31, 1994.
Beginning in May 1996, the MSCI EAFE-Registered Trademark-+EMF Index is
used as the Portfolio's benchmark.
** Annualized.
PERFORMANCE DATA QUOTED IS HISTORICAL AND ASSUMES REINVESTMENT OF ALL DIVIDENDS
AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN WHEN
PURCHASED. PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. INVESTMENTS
IN SECURITIES OF NON-US ISSUERS AND FOREIGN CURRENCIES INVOLVE RISKS DIFFERENT
FROM THOSE OF US ISSUERS. THE PROSPECTUS CONTAINS FURTHER INFORMATION AND
DETAILS REGARDING THESE RISKS.
-9-
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO (the "International Equity Portfolio," or the
"Portfolio")
- -------------------------------------------------------------------------------
(CONTINUED)
ACCESSOR INTERNATIONAL EQUITY
The graph shown below measures the performance of a hypothetical $10,000
investment in the International Equity Portfolio against the Morgan Stanley
Capital International EAFE-Registered Trademark-+EMF Index from inception of
the Portfolio through December, 1997. The data points from the graph are as
follows:
COMPARISON OF $10,000 INVESTMENT IN THE INTERNATIONAL EQUITY PORTFOLIO AND THE
MORGAN STANLEY CAPITAL INTERNATIONAL EAFE-REGISTERED TRADEMARK-+EMF INDEX
[Graph omitted]
DATE 10,000 IN FUND 10,000 IN INDEX
30-Apr-96 $ 10,000.00 $ 10,000.00
31-May-96 $ 10,015.00 $ 9,840.00
28-Jun-96 $ 10,182.25 $ 9,898.06
31-Jul-96 $ 9,674.16 $ 9,569.44
30-Aug-96 $ 9,768.96 $ 9,608.68
30-Sep-96 $ 9,906.71 $ 9,827.75
31-Oct-96 $ 9,906.71 $ 9,699.99
29-Nov-96 $ 10,320.81 $ 10,056.95
31-Dec-96 $ 10,379.63 $ 9,948.34
31-Jan-97 $ 10,386.90 $ 9,733.45
28-Feb-97 $ 10,424.29 $ 9,927.15
31-Mar-97 $ 10,499.35 $ 9,933.10
30-Apr-97 $ 10,551.84 $ 10,009.59
30-May-97 $ 11,227.16 $ 10,618.17
30-Jun-97 $ 11,827.82 $ 11,220.22
31-Jul-97 $ 12,532.75 $ 11,424.43
29-Aug-97 $ 11,684.29 $ 10,513.90
30-Sep-97 $ 12,508.03 $ 11,080.60
31-Oct-97 $ 11,394.81 $ 10,116.59
28-Nov-97 $ 11,319.61 $ 10,002.27
31-Dec-97 $ 11,516.57 $ 10,111.30
HISTORICAL RATES OF RETURN **
PERIODS ENDING DECEMBER 31, 1997
One Year . . . . 10.96%
*Inception. . . . 8.96%
* Inception assumes initial investment on October 3, 1994. MSCI
EAFE-Registered Trademark- Index comparison for the initial investment
through the period ended April 30, 1996 began on October 31, 1994.
Beginning in May 1996, the MSCI EAFE-Registered Trademark-+EMF Index is
used as the Portfolio's benchmark.
** Annualized.
PERFORMANCE DATA QUOTED IS HISTORICAL AND ASSUMES REINVESTMENT OF ALL DIVIDENDS
AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN WHEN
PURCHASED. PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. INVESTMENTS
IN SECURITIES OF NON-US ISSUERS AND FOREIGN CURRENCIES INVOLVE RISKS DIFFERENT
FROM THOSE OF US ISSUERS. THE PROSPECTUS CONTAINS FURTHER INFORMATION AND
DETAILS REGARDING THESE RISKS.
-10-
<PAGE>
ACCESSOR FUNDS, INC.
INTERMEDIATE FIXED-INCOME PORTFOLIO (the "Intermediate Portfolio," or the
"Portfolio")
- --------------------------------------------------------------------------------
The Intermediate Fixed-Income Portfolio commenced operations on June 16, 1992.
The Intermediate Portfolio seeks generation of current income by investing
primarily in fixed-income securities with durations of between three and ten
years. Under normal market conditions, the Portfolio will have a dollar
weighted average duration of not less than three years nor more than ten years.
The Intermediate Portfolio is designed to have risk characteristics similar to
its benchmark, the Lehman Brothers Government/Corporate Index (the "Index").
The Money Manager of the Portfolio is Smith Barney Capital Management.
Total annualized returns for the five years and inception periods ended December
31, 1997 were 6.46% and 6.60%, respectively. For the one year ended December
31, 1997, the Portfolio had a total return of 8.62% as compared to 9.73% for the
Lehman Brothers Government/Corporate Index. Deviation from the benchmark is
principally due to the payment of operating expenses by the Portfolio, whereas
the Index results do not include expenses of any kind.
The year was favorable for fixed-income markets. During the year, moderate
economic growth coupled with little, if any real inflationary pressures
prevailed. The Federal Reserve tempered the stock and bond "rally" by making it
known that it would be vigilant about containing inflationary pressure.
ACCESSOR INTERMEDIATE FIXED INCOME
The graph shown below measures the performance of a hypothetical $10,000
investment in the Intermediate Fixed Income Portfolio against the Lehman
Brothers Government/Corporate Index from inception of the Portfolio through
December, 1997. The data points from the graph are as follows:
COMPARISON OF $10,000 INVESTMENT IN THE INTERMEDIATE FIXED INCOME
PORTFOLIO AND THE LEHMAN BROTHERS GOVERNMENT/CORPORATE INDEX
[Graph omitted]
DATE 10,000 IN FUND 10,000 IN INDEX
30-Jun-92 $10,000 $10,000
31-Jul-92 $10,213 $10,228
31-Aug-92 $10,339 $10,324
30-Sep-92 $10,483 $10,465
30-Oct-92 $10,303 $10,316
30-Nov-92 $10,222 $10,292
31-Dec-92 $10,371 $10,450
29-Jan-93 $10,598 $10,665
26-Feb-93 $10,787 $10,860
31-Mar-93 $10,840 $10,900
30-Apr-93 $10,923 $10,986
28-May-93 $10,922 $10,971
30-Jun-93 $11,123 $11,182
31-Jul-93 $11,163 $11,231
31-Aug-93 $11,372 $11,449
30-Sep-93 $11,414 $11,493
29-Oct-93 $11,449 $11,532
30-Nov-93 $11,321 $11,434
31-Dec-93 $11,359 $11,486
31-Jan-94 $11,507 $11,658
28-Feb-94 $11,228 $11,404
31-Mar-94 $10,959 $11,125
30-Apr-94 $10,856 $11,032
31-May-94 $10,831 $11,012
30-Jun-94 $10,785 $10,987
29-Jul-94 $10,969 $11,207
31-Aug-94 $10,965 $11,211
30-Sep-94 $10,809 $11,042
31-Oct-94 $10,779 $11,030
30-Nov-94 $10,728 $11,010
31-Dec-94 $10,764 $11,083
31-Jan-95 $10,941 $11,296
28-Feb-95 $11,171 $11,558
31-Mar-95 $11,253 $11,635
28-Apr-95 $11,391 $11,797
31-May-95 $11,859 $12,291
30-Jun-95 $11,942 $12,389
31-Jul-95 $11,888 $12,341
31-Aug-95 $12,040 $12,499
29-Sep-95 $12,169 $12,627
31-Oct-95 $12,342 $12,812
30-Nov-95 $12,535 $13,024
29-Dec-95 $12,730 $13,215
31-Jan-96 $12,794 $13,297
29-Feb-96 $12,535 $13,015
29-Mar-96 $12,439 $12,906
30-Apr-96 $12,352 $12,817
31-May-96 $12,335 $12,795
28-Jun-96 $12,489 $12,966
31-Jul-96 $12,508 $12,996
30-Aug-96 $12,462 $12,965
30-Sep-96 $12,673 $13,196
31-Oct-96 $12,943 $13,503
29-Nov-96 $13,204 $13,752
31-Dec-96 $13,055 $13,599
31-Jan-97 $13,055 $13,615
28-Feb-97 $13,080 $13,641
31-Mar-97 $12,923 $13,479
30-Apr-97 $13,108 $13,676
30-May-97 $13,206 $13,803
30-Jun-97 $13,369 $13,968
31-Jul-97 $13,774 $14,396
29-Aug-97 $13,615 $14,235
30-Sep-97 $13,821 $14,458
31-Oct-97 $14,012 $14,689
28-Nov-97 $14,027 $14,767
31-Dec-97 $14,181 $14,922
HISTORICAL RATES OF RETURN **
PERIODS ENDING DECEMBER 31, 1997
One Year . . . . 8.62%
Five Years . . . 6.46%
*Inception. . . . 6.60%
* Inception assumes initial investment on June 16, 1992. Lehman Brothers
Government/Corporate Index comparison for the initial investment began on
June 30, 1992.
** Annualized.
PERFORMANCE DATA QUOTED IS HISTORICAL AND ASSUMES REINVESTMENT OF ALL DIVIDENDS
AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN WHEN
PURCHASED. PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
-11-
<PAGE>
ACCESSOR FUNDS, INC.
SHORT-INTERMEDIATE FIXED-INCOME PORTFOLIO (the "Short-Intermediate Portfolio,"
or the "Portfolio")
- --------------------------------------------------------------------------------
The Short-Intermediate Fixed-Income Portfolio commenced operations on May 18,
1992. The Short-Intermediate Portfolio seeks preservation of capital and
generation of current income by investing primarily in fixed-income
securities with durations of between one and five years. Under normal market
conditions, the Portfolio will have a dollar weighted average duration of not
less than two years and not more than five years. The Portfolio is designed
to have risk characteristics similar to its benchmark, the Lehman Brothers
Government/Corporate 1-5 Year Index (the "Index"). The Money Manager of the
Short-Intermediate Portfolio is Bankers Trust Company.
Total annualized returns for the five years and inception periods ended December
31, 1997 were 5.03% and 5.22%, respectively. For the one year ended December
31, 1997, the Portfolio had a total return of 6.33% as compared to 7.13% for the
Lehman Brothers Government/Corporate 1-5 Year Index.
The year was relatively favorable for fixed-income markets. During the year,
moderate economic growth coupled with little, if any real inflationary pressures
prevailed. The Federal Reserve tempered the stock and bond "rally" by making it
known that it would be vigilant about containing inflationary pressure.
The most significant factor of deviation from the benchmark is principally due
to the payment of operating expenses by the Portfolio, whereas the Index results
do not include expenses of any kind. For the one year performance in 1997, the
Portfolio actually outperformed the benchmark by six basis points, gross of
expenses. Other factors contributing to the overall performance of the
Portfolio were the Portfolio's yield curve position and overweighting in higher
quality, short-term corporate bonds. This strategy provided the Portfolio with
extra yield and created the opportunity for enhanced returns versus the Index.
ACCESSOR SHT INTER FIXED INCOME
The graph shown below measures the performance of a hypothetical $10,000
investment in the Intermediate Fixed-Income Portfolio against the Lehman
Brothers Government/Corporate 1-5 Year Index from inception of the Portfolio
through December, 1997. The data points from the graph are as follows:
COMPARISON OF $10,000 INVESTMENT IN THE INTERMEDIATE FIXED-INCOME
PORTFOLIO AND THE LEHMAN BROTHERS GOVERNMENT/CORPORATE 1-5 YEAR INDEX
[Graph omitted]
DATE 10,000 IN FUND 10,000 IN INDEX
29-May-92 $10,000 $10,000
30-Jun-92 $10,119 $10,130
31-Jul-92 $10,265 $10,287
31-Aug-92 $10,349 $10,388
30-Sep-92 $10,462 $10,510
30-Oct-92 $10,362 $10,406
30-Nov-92 $10,321 $10,373
31-Dec-92 $10,421 $10,489
29-Jan-93 $10,555 $10,653
26-Feb-93 $10,667 $10,781
31-Mar-93 $10,703 $10,821
30-Apr-93 $10,781 $10,905
28-May-93 $10,749 $10,872
30-Jun-93 $10,848 $10,991
31-Jul-93 $10,863 $11,013
31-Aug-93 $10,965 $11,145
30-Sep-93 $10,989 $11,182
29-Oct-93 $11,009 $11,211
30-Nov-93 $10,971 $11,188
31-Dec-93 $11,006 $11,234
31-Jan-94 $11,095 $11,330
28-Feb-94 $10,977 $11,216
31-Mar-94 $10,858 $11,104
30-Apr-94 $10,800 $11,040
31-May-94 $10,807 $11,052
30-Jun-94 $10,825 $11,071
29-Jul-94 $10,917 $11,195
31-Aug-94 $10,947 $11,232
30-Sep-94 $10,880 $11,172
31-Oct-94 $10,886 $11,186
30-Nov-94 $10,835 $11,129
31-Dec-94 $10,849 $11,153
31-Jan-95 $11,006 $11,324
28-Feb-95 $11,181 $11,520
31-Mar-95 $11,237 $11,585
28-Apr-95 $11,341 $11,707
31-May-95 $11,580 $11,978
30-Jun-95 $11,630 $12,049
31-Jul-95 $11,648 $12,078
31-Aug-95 $11,727 $12,164
29-Sep-95 $11,784 $12,233
31-Oct-95 $11,883 $12,351
30-Nov-95 $11,989 $12,482
29-Dec-95 $12,088 $12,590
31-Jan-96 $12,186 $12,706
29-Feb-96 $12,103 $12,620
29-Mar-96 $12,052 $12,580
30-Apr-96 $12,030 $12,570
31-May-96 $12,031 $12,579
28-Jun-96 $12,130 $12,690
31-Jul-96 $12,160 $12,736
30-Aug-96 $12,181 $12,767
30-Sep-96 $12,313 $12,909
31-Oct-96 $12,468 $13,090
29-Nov-96 $12,578 $13,215
31-Dec-96 $12,529 $13,181
31-Jan-97 $12,592 $13,242
28-Feb-97 $12,600 $13,268
31-Mar-97 $12,551 $13,226
30-Apr-97 $12,666 $13,354
30-May-97 $12,740 $13,452
30-Jun-97 $12,837 $13,558
31-Jul-97 $13,007 $13,758
29-Aug-97 $12,967 $13,739
30-Sep-97 $13,091 $13,867
31-Oct-97 $13,215 $13,992
28-Nov-97 $13,217 $14,018
31-Dec-97 $13,320 $14,121
HISTORICAL RATES OF RETURN **
PERIODS ENDING DECEMBER 31, 1997
One Year . . . . 6.33%
Five Years . . . 5.03%
*Inception. . . . 5.22%
* Inception assumes initial investment on May 18, 1992. Lehman Brothers
Government/Corporate 1-5 Year Index comparison for the initial investment
began on May 29, 1992.
** Annualized.
PERFORMANCE DATA QUOTED IS HISTORICAL AND ASSUMES REINVESTMENT OF ALL DIVIDENDS
AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN WHEN
PURCHASED. PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
-12-
<PAGE>
ACCESSOR FUNDS, INC.
MORTGAGE SECURITIES PORTFOLIO (the "Mortgage Portfolio," or the "Portfolio")
- --------------------------------------------------------------------------------
The Mortgage Portfolio commenced operations on May 18, 1992. The Portfolio seeks
generation of current income by investing primarily in mortgage-related
securities. The Portfolio is designed to have risk characteristics similar to
its benchmark, the Lehman Brothers Mortgage-Backed Securities Index (the
"Index"). The Money Manager of the Mortgage Portfolio is BlackRock Financial
Management, Inc.
Total annualized returns for the five years and inception periods ended December
31, 1997 were 7.07% and 6.99%, respectively. For the one year ended December
31, 1997, the Portfolio had a total return of 9.53% outperforming the Lehman
Mortgage-Backed Securities Index return of 9.48%.
The performance of the Portfolio is net of operating expenses whereas an Index,
to include the Lehman Mortgage-Backed, has no inherent expenses. Deviation from
the benchmark is principally due to the payment of operating expenses by the
Portfolio. The one year return for 1997 was higher than the benchmark by five
basis points, net of expenses. Other factors can be primarily attributed to the
Portfolio's mortgage weighting and duration positioning. First, the Portfolio's
overall allocation to the mortgage-backed security sector was reduced over the
year in accordance with the Money Manager's negative outlook on that market. Of
the mortgages held in the Portfolio, the Money Manager remained focused on
seasoned pass-through securities, which are expected to provide more stable
prepayment characteristics than newly issued pass-throughs. The Portfolio
generally maintained a duration, or interest rate sensitivity, slightly longer
than the Index during the year. Therefore, the Portfolio posted strong gains as
the Treasury market rallied and interest rates fell during 1997.
ACCESSOR MORTGAGE SECURITIES
The graph shown below measures the performance of a hypothetical $10,000
investment in the Mortgage Securities Portfolio against the Lehman Brothers
Mortgage-Backed Securities Index from inception of the Portfolio through
December, 1997. The data points from the graph are as follows:
COMPARISON OF $10,000 INVESTMENT IN THE MORTGAGE SECURITIES
PORTFOLIO AND THE LEHMAN BROTHERS MORTGAGE-BACKED SECURITIES INDEX
[Graph omitted]
DATE 10,000 IN FUND 10,000 IN INDEX
29-May-92 $10,000 $10,000
30-Jun-92 $10,095 $10,118
31-Jul-92 $10,271 $10,207
31-Aug-92 $10,356 $10,340
30-Sep-92 $10,413 $10,420
30-Oct-92 $10,259 $10,329
30-Nov-92 $10,244 $10,361
31-Dec-92 $10,379 $10,494
29-Jan-93 $10,545 $10,632
26-Feb-93 $10,662 $10,739
31-Mar-93 $10,705 $10,805
30-Apr-93 $10,754 $10,861
28-May-93 $10,773 $10,923
30-Jun-93 $10,922 $11,006
31-Jul-93 $10,981 $11,050
31-Aug-93 $11,049 $11,102
30-Sep-93 $11,062 $11,112
29-Oct-93 $11,089 $11,144
30-Nov-93 $11,067 $11,122
31-Dec-93 $11,133 $11,212
31-Jan-94 $11,240 $11,323
28-Feb-94 $11,133 $11,244
31-Mar-94 $10,998 $10,951
30-Apr-94 $10,910 $10,870
31-May-94 $10,899 $10,914
30-Jun-94 $10,867 $10,890
29-Jul-94 $11,076 $11,107
31-Aug-94 $11,071 $11,143
30-Sep-94 $10,917 $10,985
31-Oct-94 $10,902 $10,978
30-Nov-94 $10,861 $10,944
31-Dec-94 $10,949 $11,032
31-Jan-95 $11,176 $11,268
28-Feb-95 $11,445 $11,555
31-Mar-95 $11,509 $11,609
28-Apr-95 $11,650 $11,774
31-May-95 $12,010 $12,145
30-Jun-95 $12,089 $12,214
31-Jul-95 $12,086 $12,235
31-Aug-95 $12,197 $12,362
29-Sep-95 $12,297 $12,471
31-Oct-95 $12,398 $12,582
30-Nov-95 $12,563 $12,726
29-Dec-95 $12,705 $12,885
31-Jan-96 $12,775 $12,981
29-Feb-96 $12,653 $12,874
29-Mar-96 $12,596 $12,827
30-Apr-96 $12,560 $12,791
31-May-96 $12,531 $12,754
28-Jun-96 $12,684 $12,930
31-Jul-96 $12,720 $12,978
30-Aug-96 $12,713 $12,978
30-Sep-96 $12,932 $13,195
31-Oct-96 $13,171 $13,453
29-Nov-96 $13,408 $13,646
31-Dec-96 $13,337 $13,575
31-Jan-97 $13,411 $13,675
28-Feb-97 $13,461 $13,720
31-Mar-97 $13,306 $13,591
30-Apr-97 $13,548 $13,808
30-May-97 $13,693 $13,943
30-Jun-97 $13,848 $14,106
31-Jul-97 $14,086 $14,371
29-Aug-97 $14,058 $14,337
30-Sep-97 $14,249 $14,519
31-Oct-97 $14,423 $14,680
28-Nov-97 $14,455 $14,728
31-Dec-97 $14,608 $14,862
HISTORICAL RATES OF RETURN **
PERIODS ENDING DECEMBER 31, 1997
One Year . . . . 9.53%
Five Years . . . 7.07%
*Inception. . . . 6.99%
* Inception assumes initial investment on May 18, 1992. Lehman Brothers
Mortgage-Backed Securities Index comparison for the initial investment
began on May 29, 1992.
** Annualized.
PERFORMANCE DATA QUOTED IS HISTORICAL AND ASSUMES REINVESTMENT OF ALL DIVIDENDS
AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN WHEN
PURCHASED. PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
-13-
<PAGE>
ACCESSOR FUNDS, INC.
U.S. GOVERNMENT MONEY PORTFOLIO (the "U.S. Government Money Portfolio," or the
"Portfolio")
- --------------------------------------------------------------------------------
The U.S. Government Money Portfolio commenced operations on April 9, 1992. The
Portfolio seeks maximum current income consistent with the preservation of
principal and liquidity by investing primarily in short-term obligations issued
or guaranteed by the U.S. Government, it agencies or instrumentalities. The US
Government Money Portfolio is managed by Bennington Capital Management L.P.
Total annualized returns for the five years and inception periods ended December
31, 1997 were 4.33% and 4.20%, respectively. For the one year ended December
31, 1997, the Portfolio had a total return of 5.07% which was consistent given
its investment objective.
Several economic factors influenced the management and performance of the
Portfolio over the recent year. Inflation posted its lowest annual rate in a
decade, as the CPI grew by a modest 1.9%. The US economy flourished over the
year as gross domestic product increased by 3.8%, up from 2.8% in 1996. The
Federal Reserve Board had a relatively inactive year while the budget deficit
continued to decline. Domestic financial markets continued to prosper fueled by
the strong US economy. The S&P 500 Composite Index posted gains of over 33% for
the year while the Lehman Brothers Aggregate Index provided returns of over 9%.
The year of 1997 should leave favorable memories in the minds of most investors.
The robust economic growth experienced over the recent year coupled with the
declining budget deficit made US Government agency discount issues very
attractive offerings during 1997. Throughout the year US Government agency
paper produced significant incremental yield over treasury issues, with only
a minimal assumption of incremental credit risk. The US Government Money
Portfolio sought to capitalize on this market and further boost yields by
increasing its proportion of agency paper during the year.
The Portfolio experienced a 17% reduction in its asset base over the past year,
having a direct effect of causing expense ratios to increase and thus hampering
performance. Even with declining asset levels the Portfolio posted competitive
returns relative to peer money market funds.
ACCESSOR US GOVERNMENT MONEY
The graph shown below measures the performance of a hypothetical $10,000
investment in the US Government Money Portfolio.
$10,000 INVESTMENT IN THE US GOVERNMENT MONEY PORTFOLIO
[Graph omitted]
DATE 10,000 IN FUND
9-Apr-92 10,000
29-May-92 10,030
30-Jun-92 10,060
31-Jul-92 10,091
31-Aug-92 10,120
30-Sep-92 10,144
30-Oct-92 10,169
30-Nov-92 10,192
31-Dec-92 10,217
29-Jan-93 10,242
26-Feb-93 10,263
31-Mar-93 10,286
30-Apr-93 10,309
28-May-93 10,332
30-Jun-93 10,354
30-Jul-93 10,378
31-Aug-93 10,402
30-Sep-93 10,425
29-Oct-93 10,449
30-Nov-93 10,473
31-Dec-93 10,505
31-Jan-94 10,529
28-Feb-94 10,551
31-Mar-94 10,576
29-Apr-94 10,604
31-May-94 10,634
30-Jun-94 10,665
29-Jul-94 10,699
31-Aug-94 10,734
30-Sep-94 10,769
31-Oct-94 10,807
30-Nov-94 10,846
31-Dec-94 10,893
31-Jan-95 10,940
28-Feb-95 10,984
31-Mar-95 11,034
28-Apr-95 11,084
31-May-95 11,135
30-Jun-95 11,185
31-Jul-95 11,235
31-Aug-95 11,285
29-Sep-95 11,333
31-Oct-95 11,379
30-Nov-95 11,415
29-Dec-95 11,462
31-Jan-96 11,490
29-Feb-96 11,532
29-Mar-96 11,576
30-Apr-96 11,620
31-May-96 11,667
28-Jun-96 11,708
31-Jul-96 11,755
30-Aug-96 11,803
30-Sep-96 11,846
31-Oct-96 11,896
29-Nov-96 11,935
31-Dec-96 11,978
31-Jan-97 12,027
28-Feb-97 12,071
31-Mar-97 12,121
30-Apr-97 12,170
30-May-97 12,222
30-Jun-97 12,272
31-Jul-97 12,325
31-Aug-97 12,377
30-Sep-97 12,429
31-Oct-97 12,482
28-Nov-97 12,533
31-Dec-97 12,585
HISTORICAL RATES OF RETURN **
PERIODS ENDING DECEMBER 31, 1997
One Year . . . . 5.07%
Five Years . . . 4.33%
*Inception. . . . 4.20%
* Inception assumes initial investment on April 9, 1992.
** Annualized.
PERFORMANCE DATA QUOTED IS HISTORICAL AND ASSUMES REINVESTMENT OF ALL DIVIDENDS
AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN WHEN
PURCHASED. PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. AN INVESTMENT
IN THE U.S. GOVERNMENT MONEY PORTFOLIO IS NEITHER INSURED NOR GUARANTEED BY THE
U.S. GOVERNMENT AND THERE CAN BE NO ASSURANCE THAT THE PORTFOLIO WILL BE ABLE TO
MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE.
-14-
<PAGE>
ACCESSOR FUNDS, INC.
GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
COMMON STOCK (100.00%)
ADVERTISING (0.40%)
Interpublic Group of Companies, Incorporated 7,100 $ 353,669
------------
353,669
AEROSPACE - DEFENSE (0.86%)
United Technologies Corporation 10,300 749,969
------------
749,969
BANKS/SAVINGS & LOANS (5.99%)
Chase Manhattan Corporation 11,500 1,259,250
Equifax, Incorporated 13,200 467,775
Federal National Mortage 29,900 1,706,168
MBNA Corporation 30,050 820,741
State Street Corporation 4,400 256,025
U.S. Bancorp 6,600 738,788
------------
5,248,747
BEVERAGES - SOFT DRINKS (3.78%)
Coca Cola Company 21,900 1,459,088
Pepsico, Incorporated 50,900 1,854,669
------------
3,313,757
BROKERAGES (0.56%)
Charles Schwab Corporation 11,800 494,863
------------
494,863
CHEMICALS (2.26%)
Air Products & Chemicals Incorporated 6,300 518,175
Dupont De Nemours & Company 24,400 1,465,525
------------
1,983,700
COMMERCIAL SERVICES (2.69%)
Cendant Corporation* 22,200 763,125
Cognizant Corporation 11,100 494,644
Ecolab, Incorporated 6,500 360,344
Pitney-Bowes, Incorporated 8,200 737,488
------------
2,355,601
COMPUTER SOFTWARE & SERVICES (5.03%)
Automatic Data Processing 11,600 711,950
Computer Sciences Corporation* 2,300 192,050
Microsoft Corporation* 27,100 3,502,675
------------
4,406,675
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-15-
<PAGE>
ACCESSOR FUNDS, INC.
GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
(CONTINUED)
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
COMPUTER SYSTEMS & SERVICES (4.73%)
Cisco Systems, Incorporated* 44,700 $ 2,492,025
Compaq Computer Corporation 11,350 640,566
Dell Computer Corporation* 12,100 1,016,400
------------
4,148,991
COSMETICS & TOILETRIES (1.90%)
Avon Products, Incorporated 1,000 61,375
Colgate-Palmolive Company 21,800 1,602,300
------------
1,663,675
DIVERSIFIED - CONGLOMERATE (8.13%)
General Electric Company 90,000 6,603,750
Minnesota Mining & Manufacturing Company 6,300 516,994
------------
7,120,744
DRUGS & PHARMACEUTICALS (17.27%)
Abbott Laboratories 25,000 1,639,063
American Home Products Corporation 3,200 244,800
Bristol-Myers Squibb Company 32,400 3,065,848
Johnson & Johnson 32,400 2,134,350
Lilly (Eli) & Company 24,400 1,698,850
Merck & Company 35,700 3,793,122
Pfizer, Incorporated 9,200 685,975
Schering-Plough 30,200 1,876,175
------------
15,138,183
ELECTRONICS (5.76%)
Honeywell, Incorporated 3,600 246,600
Intel Corporation 65,900 4,629,475
Tektronix, Incorporated 4,350 172,641
------------
5,048,716
FOODS (6.65%)
Conagra, Incorporated 12,000 393,750
CPC International, Incorporated 5,900 635,725
General Mills, Incorporated 8,400 601,650
Hershey Foods Corporation 5,500 340,656
Kellogg Company 13,800 684,825
Ralston Purina Company 4,400 408,925
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-16-
<PAGE>
ACCESSOR FUNDS, INC.
GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
(CONTINUED)
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
FOODS (CONTINUED)
Sara Lee Corporation 30,800 $ 1,734,425
Sysco Corporation 10,900 496,631
Wrigley (Wm.) Jr. Company 6,700 533,069
--------------
5,829,656
HOSPITAL MANAGEMENT (0.58%)
Cardinal Health, Incorporated 6,800 510,850
--------------
510,850
HOTELS & MOTELS (0.89%)
Marriott International, Incorporated 11,200 775,600
--------------
775,600
HOUSEHOLD PRODUCTS (6.61%)
Clorox Company 8,400 664,125
Gillette Company 14,400 1,446,300
Newell Company 11,800 501,500
Procter & Gamble Company 39,900 3,184,519
--------------
5,796,444
INSURANCE (3.09%)
American International Group 16,700 1,816,125
Marsh & McLennan Company, Incorporated 7,600 566,675
Sunamerica, Incorporated 7,600 324,900
--------------
2,707,700
MACHINERY (1.89%)
Aeroquip-Vickers, Incorporated 4,300 210,969
Dover Corporation 15,700 567,162
Illinois Tool Works 14,600 877,825
--------------
1,655,956
MEDICAL SUPPLIES (1.64%)
Becton, Dickinson & Company 10,100 505,000
Guidant Corporation 8,000 498,000
Medtronic, Incorporated 8,300 434,194
--------------
1,437,194
OIL & GAS (1.82%)
Anadarko Petroleum Corporation 5,700 345,919
Schlumberger Limited 15,500 1,247,750
--------------
1,593,669
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-17-
<PAGE>
ACCESSOR FUNDS, INC.
GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
(CONCLUDED)
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
PUBLISHING NEWS (1.25%)
Dun & Bradstreet 7,900 $ 244,406
Gannett Company, Incorporated 13,700 846,831
--------------
1,091,237
RETAIL - GROCERY (0.55%)
Kroger Company* 13,100 483,881
--------------
483,881
RETAIL - TRADE (7.49%)
Dayton Hudson Corporation 8,500 573,750
Home Depot 29,100 1,713,261
Rite Aid Corportion 3,700 217,144
TJX Companies, Incorporated 11,100 381,563
Wal-Mart Stores, Incorporated 81,400 3,210,213
Walgreen Company 14,900 467,488
--------------
6,563,419
TELECOMMUNICATIONS (4.69%)
GTE Corporation 28,100 1,468,225
Lucent Technology 15,500 1,238,063
SBC Communications, Incorporated 13,300 974,225
Tellabs, Incorporated* 8,200 433,575
--------------
4,114,088
TOBACCO (3.12%)
Philip Morris Cos., Incorporated 60,300 2,732,344
--------------
2,732,344
TOYS (0.37%)
Mattel, Incorporated 8,800 327,800
--------------
327,800
TOTAL INVESTMENTS (100.0%) (IDENTIFIED COST $72,037,678) $ 87,647,128
--------------
--------------
</TABLE>
* Non-income producing security
- --------------------------------------------------------------------------------
See notes to financial statements
-18-
<PAGE>
ACCESSOR FUNDS, INC.
VALUE AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
COMMON STOCK (97.70%)
AEROSPACE - DEFENSE (1.21%)
Boeing Company 6,300 $ 308,306
General Dynamics Corporation 7,500 648,281
------------
956,587
AIR TRAVEL (1.19%)
AMR Corporation* 7,300 938,050
------------
938,050
AUTOMOBILES (4.66%)
Chrysler Corporation 9,200 323,725
Ford Motor Company 38,100 1,854,994
General Motors Corporation 24,800 1,503,500
------------
3,682,219
BANKS/SAVINGS & LOANS (16.63%)
Banc One Corporation 7,700 418,206
Bankamerica Corporation 12,200 890,600
Bankers Trust New York Corporation 8,600 966,963
Chase Manhattan Corporation 10,000 1,095,000
Citicorp 15,800 1,997,712
Comerica, Incorporated 8,800 794,200
First Chicago NBD Corporation 13,100 1,093,850
First Union Corporation 24,200 1,240,250
Fleet Financial Group, Incorporated 16,800 1,258,950
Golden West Financial Corporation 10,000 978,125
Greentree Financial 20,400 534,225
J.P.Morgan & Company 5,300 598,238
Nationsbank Corporation 6,300 383,119
Republic of New York Corporation 7,600 867,825
------------
13,117,263
BROKERAGES (1.96%)
Morgan Stanley Dean Witter Discover 26,200 1,549,075
------------
1,549,075
BUILDING & CONSTRUCTION (0.50%)
Centex Corporation 6,300 396,506
------------
396,506
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-19-
<PAGE>
ACCESSOR FUNDS, INC.
VALUE AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
(CONTINUED)
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
CHEMICALS (3.14%)
Dow Chemical Company 11,200 $ 1,136,800
Engelhard Corporation 10,300 178,963
Rohm & Haas Company 5,700 545,775
Union Carbide Corporation 14,400 618,300
-----------
2,479,838
COMPUTER SYSTEMS & SERVICES (5.20%)
Compaq Computer Corporation 5,600 316,050
Digital Equipment Corporation* 17,700 654,900
Hewlett Packard Company 7,600 475,000
IBM Corporation 22,400 2,342,200
Unisys Corporation* 22,900 317,738
-----------
4,105,888
DIVERSIFIED MANUFACTURER (0.63%)
Tenneco, Incorporated 12,600 497,700
-----------
497,700
ELECTRIC UTILITIES (4.46%)
Dominion Resources, Incorporated 5,200 221,325
Entergy Corporation 33,100 990,931
First Energy Corporation* 19,600 568,400
GPU, Incorporated 19,200 808,800
Public Service Enterprise 29,400 931,613
-----------
3,521,069
ELECTRONICS (1.84%)
KLA - Tencor Corporation* 6,000 231,750
National Semiconductors* 30,200 783,312
Raytheon Company Class A 1,581 77,988
Tektronix, Incorporated 9,100 361,156
-----------
1,454,206
ENTERTAINMENT & LEISURE (2.22%)
Brunswick Corporation 25,700 779,031
Ryan's Steak Houses, Incorporated* 66,600 570,263
The Walt Disney Company 4,100 406,156
-----------
1,755,450
FOODS (2.33%)
Archer-Daniels Midland Company 20,000 433,750
Fleming Companies, Incorporated 9,900 133,031
Supervalu, Incorporated 17,500 732,813
Whitman Corporation 20,700 539,494
-----------
1,839,088
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-20-
<PAGE>
ACCESSOR FUNDS, INC.
VALUE AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
(CONTINUED)
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
HOUSEHOLD PRODUCTS (1.84%)
Owens Illinois, Incorporated* 20,400 $ 773,925
Maytag Corporation 18,100 675,356
-----------
1,449,281
INSURANCE (5.00%)
Allstate Corporation 2,700 245,363
Cigna Corporation 1,500 259,594
Conseco, Incorporated 21,700 985,993
Loews Corporation 4,000 424,500
MBIA, Incorporated 13,200 881,925
Torchmark Corporation 23,000 967,437
Traveler's Group, Incorporated 3,450 185,869
-----------
3,950,681
MACHINERY (4.55%)
Aeroquip-Vickers, Incorporated 12,100 593,656
Case Corporation 5,400 326,363
Caterpillar, Incorporated 23,100 1,121,793
Cummins Engine, Incorporated 10,300 608,344
Dana Corporation 7,100 337,250
Parker-Hannifin Corporation 13,100 600,963
-----------
3,588,369
MANAGED CARE (0.50%)
Tenet Healthcare Corporation* 11,800 390,875
-----------
390,875
METALS (3.51%)
Alcoa Aluminum 8,200 577,074
Barrick Gold Corporation 53,900 1,003,887
Bethlehem Steel Corporation* 26,900 232,013
Phelps Dodge Corporation 7,900 491,775
U.S. Steel Group, Incorporated 14,900 465,625
-----------
2,770,374
OIL & GAS (15.10%)
Ashland, Incorporated 13,300 714,044
Chevron Corporation 18,400 1,416,800
Coastal Corporation 8,500 526,469
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-21-
<PAGE>
ACCESSOR FUNDS, INC.
VALUE AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
(CONTINUED)
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
OIL & GAS (CONTINUED)
Columbia Gas Systems, Incorporated 12,100 $ 950,606
Exxon Corporation 27,600 1,688,775
Mobil Corporation 18,900 1,364,343
Phillips Petroleum Company 21,700 1,055,163
Rowan Companies, Incorporated* 21,400 652,700
Royal Dutch Petroleum Company 15,200 823,650
Texaco, Incorporated 17,600 957,000
Union Pacific Resources Group 31,300 759,025
USX-Marathon Group 30,100 1,015,875
-----------
11,924,450
PAPER & FOREST PRODUCTS (0.21%)
International Paper Company 3,900 168,188
-----------
168,188
PHARMACEUTICALS (1.27%)
Bristol-Myers Squibb Company 4,200 397,425
Schering-Plough Corporation 9,800 608,825
-----------
1,006,250
PRINTING & PUBLISHING (3.26%)
American Greetings Corporation 13,700 536,013
Gannett Company, Incorporated 12,700 785,019
Harland, John H. Company 8,300 174,300
Tribune Company 17,300 1,076,924
-----------
2,572,256
RAILROADS (0.60%)
CSX Corporation 8,700 469,800
-----------
469,800
RETAIL - TRADE (3.41%)
Dayton Hudson Corporation 8,100 546,750
Federated Department Stores* 15,600 671,775
TJX Companies, Incorporated 26,600 914,375
Reebok International Limited* 7,500 216,094
Woolworth Corporation* 16,800 342,300
-----------
2,691,294
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-22-
<PAGE>
ACCESSOR FUNDS, INC.
VALUE AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
(CONCLUDED)
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
TELECOMMUNICATIONS (11.46%)
AT&T Company 50,500 $ 3,093,123
Ameritech Corporation 13,500 1,086,750
Bell Atlantic Corporation 23,670 2,153,970
Bellsouth Corporation 15,500 872,844
Nextlevel Systems, Incorporated* 39,700 709,638
SBC Communications, Incorporated 9,900 725,175
U.S. West Communications Group 9,000 406,125
------------
9,047,625
TRUCKING (1.02%)
Ryder Systems, Incorporated 24,700 808,925
------------
808,925
TOTAL COMMON STOCK (IDENTIFIED COST $62,714,287) 77,131,307
------------
SHORT-TERM INVESTMENTS (2.30%)
</TABLE>
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
RATE(1) DATE AMOUNT
<S> <C> <C> <C> <C>
U.S. Treasury Bill (2) 5.110% 03/19/98 $ 440,000 435,250
Fifth Third Bank Repurchase Agreement (collateralized by 5.700% 01/02/98 1,377,533 1,377,533
1,364,000 U.S. Treasury Notes, 7.5%, 10/31/99, market value -----------
$1,405,346)
TOTAL SHORT-TERM INVESTMENTS 1,812,783
-----------
(IDENTIFIED COST $1,812,783)
TOTAL INVESTMENTS (100.0%) (IDENTIFIED COST $64,527,070) $78,944,090
-----------
-----------
</TABLE>
* Non-income producing security
(1) Yield at time of purchase
(2) Security has been segregated with the custodian to cover margin requirements
for the following open futures contracts at December 31, 1997 as collateral
<TABLE>
<CAPTION>
UNITS PER CURRENT UNREALIZED
TYPE EXPIRATION CONTRACTS CONTRACT PRICE VALUE APPRECIATION
<S> <C> <C> <C> <C> <C> <C>
S&P 500 Future 03/23/98 7 250 $980.00 $1,715,000 $ 15,350
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-23-
<PAGE>
ACCESSOR FUNDS, INC.
SMALL TO MID CAP PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
COMMON STOCK (100.00%)
ADVERTISING (1.94%)
Belo A H Corporation Del 29,800 $ 1,672,525
Valassis Communications* 18,900 699,300
------------
2,371,825
AEROSPACE - DEFENSE (0.99%)
Gulfstream Aerospace Corporation* 24,800 725,400
Thiokol Corporation 6,000 487,500
------------
1,212,900
AIR TRAVEL (1.24%)
Pittson Company Brinks Group 11,600 466,900
UAL Corporation* 11,300 1,045,250
------------
1,512,150
AUTOMOTIVE PARTS & EQUIPMENT (1.34%)
Arvin Industry, Incorporated 9,500 316,469
Lear Seating Corporation* 14,200 674,500
Polaris Industry, Incorporated 10,200 311,738
Wynn's International 10,350 329,906
------------
1,632,613
BANKS/SAVINGS & LOANS (11.74%)
Albank Financial Corporation 12,700 653,256
Amsouth Bancorporation 30,600 1,661,963
Citfed Bancorp 9,700 378,300
City National Corporation 32,000 1,182,000
First Citizens Bancshares, Incorporated 2,000 204,125
Great Financial Corporation 13,600 693,600
Greenpoint Financial 11,000 798,188
Imperial Bancorporation* 33,800 1,666,763
North Fork Bancorporation 51,368 1,724,039
Northern Trust Corporation 22,800 1,590,300
Peoples Heritage Financial Savings Bank 15,800 726,800
Popular, Incorporated 15,800 782,100
Star Banc Corporation 33,000 1,893,375
T R Financial Corporation 11,200 372,400
------------
14,327,209
BROKERAGE (3.99%)
A.G. Edwards, Incorporated 21,200 842,700
Donaldson Lufkin Jenrette 6,700 532,650
Lehman Brothers Holdings, Incorporated 39,400 2,009,400
Paine Webber, Incorporated 43,050 1,487,916
------------
4,872,666
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-24-
<PAGE>
ACCESSOR FUNDS, INC.
SMALL TO MID CAP PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
(CONTINUED)
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
BUILDING & CONSTRUCTION (1.80%)
Newport News Shipbuilding 42,100 $ 1,070,919
NVR, Incorporated* 24,200 529,375
U.S. Home Corporation* 15,300 600,525
-----------
2,200,819
BUSINESS SERVICES (1.63%)
Gtech Holdings Corporation* 22,400 715,400
Personnel Group of America, Incorporated* 20,500 676,500
Robert Half International, Incorporated* 14,800 592,000
-----------
1,983,900
CHEMICALS (4.13%)
Chemed Corporation 16,300 675,431
Collagen Corporation 7,100 148,213
Dexter Corporation 17,000 734,188
Lyondell Petroleum Company 54,000 1,431,000
Tredegar Industries, Incorporated 12,400 816,850
Water Corporation* 32,700 1,230,338
-----------
5,036,020
COMPUTER SOFTWARE & SERVICES (4.81%)
Cadence Design Systems, Incorporated* 65,700 1,609,650
Computer Learning Center, Incorporated* 18,500 1,133,125
Fiserv Incorporated* 14,721 723,169
Keane Incorporated* 22,800 926,250
Tech Data Corporation* 15,800 614,225
Systems & Computer Technology Corporation* 17,300 858,513
-----------
5,864,932
CONSTRUCTION EQUIPMENT (1.45%)
Southdown, Incorporated 11,900 702,100
USG Corporation* 21,700 1,063,300
-----------
1,765,400
DRUGS & PHARMACEUTICALS (3.78%)
Bindley Western Industry, Incorporated 47,700 1,472,738
Dura Pharmaceuticals* 25,200 1,156,050
Parexel International Corporation* 12,700 469,900
Perrigo Company* 61,300 819,888
Theragenics Corporation* 19,300 694,800
-----------
4,613,376
ELECTRICAL EQUIPMENT (0.87%)
AVX Corporation 32,900 606,594
C & D Technologies, Incorporated 9,400 453,550
-----------
1,060,144
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-25-
<PAGE>
ACCESSOR FUNDS, INC.
SMALL TO MID CAP PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
(CONTINUED)
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
ELECTRICAL UTILITIES (5.28%)
Commonwealth Energy Systems 7,100 $ 236,075
Ipalco Enterprises, Incorporated 64,800 2,717,550
Minnesota Power & Light Company 17,400 757,988
New York State Electric & Gas 77,100 2,737,035
------------
6,448,648
ELECTRONICS (1.37%)
SCI Systems* 38,300 1,668,444
------------
1,668,444
FINANCE (0.99%)
Student Holdings, Incorporated 8,700 1,210,388
------------
1,210,388
FOODS (2.59%)
Interstate Bakeries 66,600 2,489,175
Richfood Holdings, Incorporated 23,900 675,175
------------
3,164,350
HOLDING COMPANY (0.36%)
SPS Technologies, Incorporated* 10,100 440,613
------------
440,613
HOSPITAL MANAGEMENT (3.86%)
Lincare Holdings, Incorporated* 12,700 723,900
Total Renal Care Holdings* 35,100 965,250
Universal Health Services, Incorporated* 60,000 3,022,500
------------
4,711,650
INSURANCE (9.49%)
American Bankers Insurance 12,200 560,438
Berkshire Hathaway, Incorporated* 60 2,760,000
Equitable Cos, Incorporated 22,200 1,104,450
Everst Reinsurance Holding 67,900 2,800,875
Fremont General Company 10,200 558,450
Mercury General Corporation 29,000 1,602,250
Old Republic International Corporation 50,000 1,859,375
Wellpoint Health Networks, Incorporated* 8,000 338,000
------------
11,583,838
MACHINERY (2.83%)
Donaldson Company, Incorporated 10,400 468,650
Gardner Denver Machinery, Incorporated* 28,500 721,406
Kaydon Corporation 11,700 381,713
Lexmark International Group, Incorporated Cl A* 14,300 543,400
Robbins & Myers, Incorporated 25,500 1,010,438
Trinity Industries, Incorporated 7,300 325,763
------------
3,451,370
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-26-
<PAGE>
ACCESSOR FUNDS, INC.
SMALL TO MID CAP PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
(CONTINUED)
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
METALS (2.30%)
National Steel Corporation* 34,500 $ 398,906
Precision Castparts Corporation 29,900 1,803,344
RMI Titanium Company* 30,200 604,000
-----------
2,806,250
OFFICE EQUIPMENT & SUPPLIES (2.54%)
Comdisco, Incorporated 27,000 902,813
Storage Technology Corporation* 30,100 1,864,319
Symantec Corporation* 15,000 329,063
-----------
3,096,195
OIL & GAS (7.42%)
Cooper Cameron Corporation* 34,500 2,104,500
Devon Energy Corporation 13,100 504,350
Houston Exploration Company* 40,300 740,513
Marine Drilling Company, Incorporated* 41,800 867,350
National Fuel Gas 22,400 1,090,600
Newpark Resources, Incorporated* 27,380 479,150
Pioneer Natural Resources, Company* 11,900 344,356
Tesoro Petroleum Corporation* 36,800 570,400
Tosco Corporation 5,400 204,188
Veritas DGC, Incorporated* 27,000 1,066,500
Vintage Petroleum, Incorporated 57,200 1,086,800
-----------
9,058,707
OTHER DURABLE GOODS (1.03%)
Avondale Industries, Incorporated* 16,000 475,000
Vulcan Materials Company 7,600 776,150
-----------
1,251,150
PAPER & FOREST PRODUCTS (0.58%)
Rayonier, Incorporated 16,600 706,538
-----------
706,538
PRINTING & PUBLISHING (1.49%)
Central Newspaper 5,500 406,656
Pulitzer Publishing Company 12,400 778,875
Washington Post Company 1,300 632,450
-----------
1,817,981
RAILROADS (0.24%)
Kansas City Southern Industries 9,100 288,925
-----------
288,925
RETAIL - GROCERY (0.20%)
Whole Foods Market, Incorporated* 4,800 245,400
-----------
245,400
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-27-
<PAGE>
ACCESSOR FUNDS, INC.
SMALL TO MID CAP PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
(CONCLUDED)
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
RETAIL - TRADE (8.59%)
Best Buy Company* 25,300 $ 932,938
CompUSA Incorporated* 5,600 173,600
Ethan Allen Interiors 48,900 1,885,706
Hillenbrand Industries, Incorporated 16,000 819,000
Jones Apparel Group, Incorporated* 30,600 1,315,800
Kohls Corporation* 10,300 701,688
Payless Shoesource, Incorporated* 7,600 510,150
Ross Stores, Incorporated 83,800 3,048,225
Russ Berrie & Company, Incorporated 41,800 1,097,250
------------
10,484,357
RESTUARANTS (1.56%)
CKE Restaurants, Incorporated 45,100 1,899,838
------------
1,899,838
TECHNOLOGY (2.17%)
DST Systems, Incorporated* 18,100 772,644
Smart Modular Technology, Incorporated* 81,400 1,872,200
------------
2,644,844
TELECOMMUNICATIONS (2.79%)
Aliant Communications 29,300 919,288
Cincinnati Bell, Incorporated 38,200 1,184,200
Superior Telecom, Incorporated* 13,400 463,138
World Access Incorporated* 35,300 842,788
------------
3,409,414
TOBACCO (1.60%)
Universal Corporation 47,400 1,949,325
------------
1,949,325
TRANSPORATION (1.01%)
U.S. Freightways Corporation 23,700 770,250
Varlen Corporation 18,982 465,356
------------
1,235,606
TOTAL INVESTMENTS (IDENTIFIED COST $98,717,401) $122,027,785
------------
</TABLE>
* Non-income producing security
- --------------------------------------------------------------------------------
See notes to financial statements
-28-
<PAGE>
ACCESSOR FUNDS, INC.
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
COMMON STOCK (94.71%)
ARGENTINA (.80%)
Perez Companc ADR 34,911 $ 484,390
Sociedad Anonima ADR 23,300 796,569
-----------
1,280,959
AUSTRALIA (2.16%)
News Corporation 231,700 1,278,698
Southcorp Holdings 325,000 1,075,736
Westpac 170,000 1,087,282
-----------
3,441,716
BELGIUM (1.16%)
Banque Bruxelles Lambert (BBL) 4,380 1,170,368
Barco N.V. (Barco Industries) 3,700 679,085
-----------
1,849,453
BRAZIL (1.74%)
Centrais Eletricas Brasi Sponsored ADR 48,000 1,224,000
Telec De Sao Paulo Sa 5,800,000 1,543,469
-----------
2,767,469
DENMARK (1.82%)
Bikuben Girobank 20,000 1,346,534
Tele Danmark A/S 'B'* 25,000 1,551,727
-----------
2,898,261
FINLAND (1.91%)
Nokia Corporation 23,000 1,610,000
Raision Tehtaat 12,050 1,431,709
-----------
3,041,709
FRANCE (7.81%)
Axa Uap 32,100 2,484,927
Cap Gemini 26,000 2,132,862
Cie Fin Paribas 'A' 15,000 1,304,053
Dessault Systemes 30,900 942,533
Elf Aquitaine 14,700 1,710,478
Groupe Danone Sponsored ADR 46,400 1,658,800
Schneider Sa 19,992 1,086,027
Synthelabo 8,900 1,112,526
-----------
12,432,206
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-29-
<PAGE>
ACCESSOR FUNDS, INC.
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
(CONTINUED)
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
GERMANY (9.01%)
Adidas 17,000 $ 2,250,225
Bayerische Vereinsbank 28,800 1,858,020
Deutsche Bank AG 27,000 1,889,054
Deutsche Lufthansa 97,200 1,827,187
Mannesmann 5,000 2,511,063
RWE AG 49,400 2,651,271
SAP AG 4,500 1,365,234
-----------
14,352,054
GREAT BRITAIN (15.78%)
Amvescap PLC 249,500 2,147,061
Bank Of Ireland 145,700 2,241,548
Barclays PLC 76,100 2,025,981
British Aerospace PLC 77,093 2,208,442
British Energy PLC 235,000 1,635,612
Diageo PLC 124,000 1,141,548
Glaxo Holdings PLC 71,000 1,682,261
Lloyds Tsb Group 121,859 1,575,986
Misys Systems 74,000 2,240,381
National Westminster Bank PLC 72,200 1,202,236
Railtrack Group PLC 109,007 1,734,416
Reuter's Holdings PLC 160,800 1,759,462
Sainsbury 174,500 1,461,455
Unilever PLC 241,600 2,071,127
-----------
25,127,516
HONG KONG (1.47%)
HSBC Holdings 35,900 884,959
Hutchison Whampoa 233,000 1,461,463
-----------
2,346,422
HUNGARY (1.06%)
Gedeon Richter 7,200 817,770
Magyar Tavkozlesi* 33,750 877,500
-----------
1,695,270
IRELAND (.36%)
Bank Of Ireland 37,100 572,159
-----------
572,159
ISRAEL (.34%)
Formula Systems* 17,400 535,687
-----------
535,687
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-30-
<PAGE>
ACCESSOR FUNDS, INC.
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
(CONTINUED)
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
ITALY (4.38%)
Credito Italiano 500,000 $ 1,542,707
Italgas Company 290,000 1,195,596
Telecom Italia Mobile 465,600 2,150,245
Telecom Italia 327,000 2,089,994
-----------
6,978,542
JAPAN (19.76%)
Aiwa Company 56,200 1,422,062
Bridgestone 76,000 1,654,194
Credit Saison 67,000 1,659,269
Fuji Photo Film 30,000 1,153,659
Honda Motor Company 50,000 1,842,009
Ibiden Company 63,000 765,568
Keyence Corporation 8,000 1,187,500
Minebea Company 135,000 1,453,610
Nichiei Company Limited 19,200 2,052,591
Nintendo Company 18,600 1,831,088
Nippon Telephone & Telegraph 127 1,093,976
NTT Data Communications Systems 24 1,297,636
Orix Corporation 24,300 1,700,724
Rohm Company 7,000 716,038
Sankyo Company 40,000 907,545
Seven Eleven Japan 16,000 1,137,046
SMC 16,000 1,415,155
Sony Chemicals 61,000 1,163,504
Sony Corporation 29,000 2,587,275
Sumitomo Special Metals 34,000 685,120
Takeda Chemical Industries 59,000 1,688,034
TDK Corporation 16,000 1,210,880
Terumo Corporation 57,000 841,710
-----------
31,466,193
KOREA, REPUBLIC OF (.01%)
SK Telecom Company Limited ADR 433 2,812
-----------
2,812
MEXICO (2.32%)
Cifra Sa Series "V" ADR 381,940 938,054
Coca-Cola Femsa de Mexico ADR 6,400 371,200
Corporacion Interamericana De Entretenimiento SA* 193,400 1,501,753
Organizacion Soriana 'B' 204,000 890,718
-----------
3,701,725
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-31-
<PAGE>
ACCESSOR FUNDS, INC.
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
(CONTINUED)
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
NETHERLANDS (4.30%)
Aegon NV 172 $ 15,315
Akzo NV 8,000 1,379,619
Baan Company NV* 30,400 995,725
Internatio Muller NV 37,375 1,176,250
KLM - Konin Luchtvaart Mij NV 34,419 1,273,378
OCE Van Der NV 63 6,868
Philips Electronics 19,900 1,193,670
Polygram 17,000 813,426
-----------
6,854,251
NORWAY (1.44%)
A/S Tomra Systems 42,000 940,019
Petroleum Geo-Services Sponsored ADR* 20,900 1,353,275
-----------
2,293,294
PORTUGAL (1.55%)
Banco Portugal De Invest 27,500 669,384
Portugal Telecom 24,200 1,124,146
Telecel Comunicasoes Pessoais SA* 6,300 671,998
-----------
2,465,528
RUSSIA (1.23%)
Ao Mosenergo ADR* 16,000 598,187
Gazprom ADR 30,600 738,225
Oil Company Lukoil Sponsored ADR 6,750 617,625
-----------
1,954,037
SINGAPORE (1.13%)
Dairy Farm International Holdings 808,000 872,640
Singapore Technology Engineering* 1,207,425 931,578
-----------
1,804,218
SOUTH AFRICA (.81%)
Barlow Limited 65,700 557,586
Dimension Data Holdings Company 168,000 724,978
-----------
1,282,564
SPAIN (2.86%)
Fomento De Construccion Y 31,600 1,202,503
Grupo Acciona SA 7,000 1,141,748
Tabacalera Series 'A' 27,200 2,203,977
-----------
4,548,228
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-32-
<PAGE>
ACCESSOR FUNDS, INC.
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
(CONTINUED)
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
<S> <C> <C>
SWEDEN (1.96%)
Ericsson L M Tel Company ADR 53,000 $ 1,977,563
Nordbanken Holding Company* 203,500 1,151,593
-------------
3,129,156
SWITZERLAND (6.25%)
Ares Serono Group B 820 1,354,906
Nestle 1,500 2,251,208
Novartis Registered 1,365 2,217,989
Schweiz Rueckvers 1,200 2,247,711
UBS (Br) 1,300 1,882,417
-------------
9,954,231
TAIWAN (.31%)
Taiwan Semiconductor* 27,500 500,156
-------------
500,156
TURKEY (.36%)
Tofas Fabrika 10,100,000 572,981
-------------
572,981
VENEZUELA (.62%)
Compania Anonima Telefon 15,600 649,350
Siderurgica Venezolana ADR 78,900 330,125
-------------
979,475
TOTAL COMMON STOCK (IDENTIFIED COST
$137,998,440) 150,828,272
-------------
</TABLE>
SHORT-TERM INVESTMENTS AND CASH EQUIVALENTS (5.29%)
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
RATE (1) DATE AMOUNT
<S> <C> <C> <C> <C>
COMMERCIAL PAPER
American Express 6.65% 01/02/98 $ 7,648,000 $ 7,646,587
Associates Corporation 6.64% 01/02/98 786,000 785,855
-------------
</TABLE>
<TABLE>
<S> <C>
TOTAL SHORT-TERM INVESTMENTS AND CASH EQUIVALENTS 8,432,442
(IDENTIFIED COST $8,432,442) -------------
TOTAL INVESTMENTS (100.0%) (IDENTIFIED COST
$146,430,882) $ 159,260,714
-------------
-------------
</TABLE>
* Non-income producing security
(1) Yield at time of purchase
- --------------------------------------------------------------------------------
See notes to financial statements.
-33-
<PAGE>
ACCESSOR FUNDS, INC.
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
(CONCLUDED)
<TABLE>
<CAPTION>
FORWARD CURRENCY CONTRACTS
CURRENCY CONTRACT CONTRACT UNREALIZED DELIVERY
PRICE VALUE DEPRECIATION DATE
<S> <C> <C> <C> <C>
LIABILITIES
Australian Dollar (Buy) 1.5170 526,853 6,100 1/7/98
Italian Lira (Buy) 1758.4000 1,193,038 6,476 1/8/98
Swiss Franc (Buy) 1.4527 1,028,290 4,124 1/6/98
Swiss Franc (Buy) 1.4527 561,258 2,251 1/6/98
Swiss Franc (Buy) 1.4521 902,582 3,991 1/8/98
Japanese Yen (Buy) 128.8700 141,253 1,251 1/6/98
Japanese Yen (Buy) 129.7000 24,629 60 1/7/98
--------
24,253
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements.
-34-
<PAGE>
ACCESSOR FUNDS, INC.
INTERMEDIATE FIXED-INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (1.30%)
Collateralized Mortgage Securities Corporation 9.450% 02/01/17 $ 535,194 $ 581,720
Merrill Lynch Mortgage Investments, Inc., Series 1992-D 8.150% 07/15/17 100,000 104,352
-----------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS 686,072
(IDENTIFIED COST $687,195)
ASSET BACKED SECURITIES (22.79%)
Bridgestone/Firestone Master Trust, Series 1996-1 6.170% 07/01/03 1,000,000 1,002,890
CPS 1997-4 A1 6.070% 03/15/03 1,126,096 1,124,600
Captiva CBO 6.860% 11/30/09 1,200,000 1,204,296
Carco Automotive 6.689% 08/15/04 1,000,000 1,010,240
Chemical Master Credit Card Trust, Series 1996-2 5.980% 09/15/08 2,000,000 1,969,960
Delta Funding Home Equity Loan Trust, Series 1996-1 6.810% 02/25/11 870,000 870,087
Ford Credit Auto Loan Master Trust, Series 1995-1 6.500% 08/15/02 500,000 505,235
Ford Credit Grantor Trust, Series 1995-A 5.900% 05/15/00 78,532 78,514
Olympic Auto Receivables Trust, Series 1996-B 6.500% 12/15/00 1,000,000 1,002,810
The Money Store Home Equity Trust, Series 1997-B 6.420% 11/15/09 1,000,000 999,610
ONYX 1996-2 A 6.400% 10/15/01 916,847 920,450
Standard Credit Card Master Trust, Series 1995-8A 6.700% 09/07/02 300,000 304,653
World Financial Network Credit Card Master Trust, Ser 1996-A 6.700% 02/15/04 1,000,000 1,020,480
-----------
TOTAL ASSET BACKED SECURITIES (IDENTIFIED COST $11,837,190) 12,013,825
-----------
CORPORATE BONDS (13.59%)
ELECTRIC UTILITIES (2.00%)
Big River Utility Company 10.700% 09/15/17 1,000,000 1,054,061
FINANCIAL (9.04%)
ABN Amro Bank 7.300% 12/01/26 250,000 254,433
First Chicago Bank 7.750% 12/01/26 1,000,000 1,040,172
Midland Bank PLC 6.120% 09/29/49 200,000 171,170
Mic Financing Trust 8.375% 02/01/27 1,000,000 1,045,426
Nations Bank Corporation 8.570% 11/15/24 1,000,000 1,209,815
Safeco 8.072% 07/15/37 1,000,000 1,048,409
-----------
4,769,425
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-35-
<PAGE>
ACCESSOR FUNDS, INC.
INTERMEDIATE FIXED-INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
(CONTINUED)
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
INDUSTRIAL (2.55%)
Kaiser Found Hospital 8.750% 08/11/03 $ 1,200,000 $ 1,342,604
TOTAL CORPORATE BONDS (IDENTIFIED COST $6,917,136) 7,166,090
-----------
U.S. GOVERNMENT AND AGENCY SECURITIES (58.46%)
U.S. TREASURY BONDS (41.60%)
United States Treasury Bond 14.000% 11/15/11 500,000 777,032
United States Treasury Bond 12.500% 08/15/14 250,000 386,563
United States Treasury Bond 10.750% 05/15/03 3,800,000 4,665,689
United States Treasury Bond 9.875% 11/15/15 566,000 804,958
United States Treasury Bond 8.500% 02/15/20 1,808,000 2,349,836
United States Treasury Bond 8.750% 08/15/20 800,000 1,066,750
United States Treasury Bond 7.250% 05/15/04 1,000,000 1,079,375
United States Treasury Bond 7.250% 08/15/04 1,000,000 1,080,938
United States Treasury Bond 6.500% 10/15/06 300,000 314,156
United States Treasury Bond 6.500% 11/15/26 1,500,000 1,601,250
United States Treasury Bond 6.250% 02/15/03 4,000,000 4,091,252
United States Treasury Bond 6.625% 02/15/27 800,000 868,250
United States Treasury Bond 6.375% 08/15/27 2,700,000 2,846,813
-----------
21,932,862
U.S. TREASURY NOTES (14.03%)
United States Treasury Note 7.125% 09/30/99 800,000 819,000
United States Treasury Note 7.750% 12/31/99 770,000 800,079
United States Treasury Note 6.375% 03/31/01 3,700,000 3,769,375
United States Treasury Note 5.875% 02/15/00 2,000,000 2,008,126
-----------
7,396,580
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) (1.89%)
FHLMC 7.125% 07/21/99 500,000 509,693
FHLMC 5.780% 10/22/03 500,000 487,596
-----------
997,289
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-36-
<PAGE>
ACCESSOR FUNDS, INC.
INTERMEDIATE FIXED-INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
(CONCLUDED)
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (0.94%)
FNMA 6.170% 12/02/03 $500,000 $ 493,787
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES
(IDENTIFIED COST $29,567,406) 30,820,518
-----------
SHORT-TERM INVESTMENTS AND CASH EQUIVALENTS (3.86%)
Fifth Third Bank Repurchase Agreement (collateralized by 5.700% 01/02/98 2,036,173 2,036,173
2,026,000 FHLMC Pool #G10657, 7.5%, 02/01/12, market -----------
value $2,077,284)
TOTAL SHORT-TERM INVESTMENTS AND CASH EQUIVALENTS
(IDENTIFIED COST $2,036,173) 2,036,173
-----------
TOTAL INVESTMENTS (100.0%) (IDENTIFIED COST $51,045,100) $52,722,678
-----------
-----------
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-37-
<PAGE>
ACCESSOR FUNDS, INC.
SHORT-INTERMEDIATE FIXED-INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
CORPORATE BONDS (14.03%)
CONSUMER GOODS (2.83%)
Anheuser Busch Companies 8.750% 12/01/99 $ 270,000 $ 282,390
Chrysler Financial Corporation 6.110% 07/28/99 310,000 310,796
Sears Roebuck Acceptance Corporation 6.630% 07/09/02 542,000 548,939
-----------
1,142,125
ELECTRIC UTILITIES (1.85%)
Consolidated Edison Corporation 5.700% 10/01/98 225,000 224,601
Southern California Edison Company 5.450% 06/15/98 200,000 199,558
Baltimore Gas & Electric Company 8.375% 08/15/01 300,000 321,257
-----------
745,416
FINANCIAL (6.84%)
Bank of Boston 6.380% 08/11/00 245,000 247,037
Beneficial Corporation 9.125% 02/15/98 300,000 300,995
Dean Witter Discover & Company 6.875% 03/01/03 400,000 409,583
Ford Motor Credit 6.250% 11/08/00 650,000 650,517
Grand Metro Investment 6.500% 09/15/99 500,000 504,569
IBM Credit Corporation 5.875% 08/25/99 300,000 299,540
Smith Barney Shearson 5.625% 11/15/98 350,000 348,385
-----------
2,760,626
INDUSTRIAL (1.64%)
Baxter International Incorporated 9.250% 12/15/99 200,000 211,201
Englehard Corporation 6.500% 09/01/00 445,000 450,053
-----------
661,254
OIL (0.63%)
Shell Oil Corporation 6.625% 07/01/99 250,000 252,311
TELECOMMUNICATIONS (0.24%)
GTE California Incorporated 6.250% 01/15/98 95,000 95,009
-----------
TOTAL CORPORATE BONDS (IDENTIFIED COST $5,622,386) 5,656,741
-----------
FOREIGN GOVERNMENT ISSUES (0.81%)
CANADIAN ISSUES (0.81%)
Province of Manitoba 9.500% 10/01/00 300,000 325,446
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-38-
<PAGE>
ACCESSOR FUNDS, INC.
SHORT-INTERMEDIATE FIXED-INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
(CONTINUED)
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C> <C>
TOTAL FOREIGN GOVERNMENT ISSUES (IDENTIFIED COST $324,855) $ 325,446
-----------
U.S. GOVERNMENT AND AGENCY SECURITIES (85.16%)
U.S. TEASURY BONDS (4.89%)
United States Treasury Bond 6.250% 02/15/03 $265,000 271,045
United States Treasury Bond 5.750% 08/15/03 1,700,000 1,701,595
-----------
1,972,640
U.S. TREASURY NOTES (76.02%)
United States Treasury Note 8.250% 07/15/98 185,000 187,659
United States Treasury Note 7.500% 11/15/01 1,110,000 1,177,294
United States Treasury Note 6.000% 10/15/99 565,000 568,178
United States Treasury Note 6.750% 05/31/99 1,000,000 1,014,375
United States Treasury Note 6.750% 06/30/99 2,000,000 2,031,250
United States Treasury Note 6.875% 07/31/99 700,000 712,250
United States Treasury Note 6.375% 03/31/01 1,285,000 1,309,094
United States Treasury Note 6.250% 10/31/01 800,000 814,000
United States Treasury Note 5.125% 04/30/98 330,000 329,691
United States Treasury Note 4.750% 08/31/98 1,250,000 1,243,360
United States Treasury Note 7.125% 09/30/99 4,000,000 4,095,000
United States Treasury Note 7.750% 01/31/00 700,000 728,000
United States Treasury Note 7.125% 02/29/00 3,000,000 3,087,189
United States Treasury Note 5.750% 10/31/00 1,590,000 1,591,988
United States Treasury Note 9.000% 05/15/98 300,000 303,750
United States Treasury Note 5.625% 11/30/00 1,000,000 998,125
United States Treasury Note 8.000% 08/15/99 1,970,000 2,040,181
United States Treasury Note 5.625% 02/28/01 500,000 499,063
United States Treasury Note 6.250% 04/30/01 1,000,000 1,015,625
United States Treasury Note 6.625% 06/30/01 1,000,000 1,028,125
United States Treasury Note 6.000% 08/15/99 1,150,000 1,155,750
United States Treasury Note 6.375% 08/31/01 500,000 512,344
United States Treasury Note 5.875% 11/15/99 565,000 566,942
United States Treasury Note 6.250% 01/31/02 1,400,000 1,425,375
United States Treasury Note 6.250% 02/28/02 1,300,000 1,324,375
United States Treasury Note 6.625% 03/31/02 40,000 41,300
United States Treasury Note 6.500% 05/31/02 430,000 442,631
United States Treasury Note 6.250% 08/31/02 400,000 408,250
-----------
30,651,164
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-39-
<PAGE>
ACCESSOR FUNDS, INC.
SHORT-INTERMEDIATE FIXED-INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
(CONCLUDED)
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
U.S. TREASURY BILLS (0.76%)
United States Treasury Bill 5.040% 01/08/98 $ 305,000 $ 304,727
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (0.69%)
GNMA 7.000% 02/15/08 271,849 277,226
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) (0.93%)
FHLMC 8.500% 02/01/06 7,199 7,482
FHLMC 8.500% 08/01/06 131,346 136,500
FHLMC 8.500% 08/01/06 8,511 8,845
FHLMC 7.500% 01/01/08 216,804 222,732
------------
375,559
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (1.87%)
FNMA 7.000% 12/01/08 216,170 219,527
FNMA 7.000% 11/01/07 84,565 85,892
FNMA 7.000% 07/01/11 444,167 450,860
------------
756,279
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES
(IDENTIFIED COST $33,982,855) 34,337,595
------------
TOTAL INVESTMENTS (100.0%) (IDENTIFIED COST $39,930,096) $ 40,319,782
------------
------------
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-40-
<PAGE>
ACCESSOR FUNDS, INC.
MORTGAGE SECURITIES PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (6.47%)
Community Program Loan Trust - 1987-A A4 4.500% 10/01/18 $ 1,683,711 $ 1,593,834
GMAC Mortgage Securities Incorporated 8.950% 08/20/17 95,174 94,908
Residential Asset Securitization Trust 1996-A9 7.500% 01/25/27 1,020,954 1,029,963
Residential Asset Securitization Trust 1997-A9 7.250% 11/25/27 1,235,898 1,247,120
Residential Accredit Loans Incorporated 7.250% 10/25/27 1,860,871 1,888,785
Rural Housing Trust 1987-1 - Rural 2C 6.830% 04/01/26 905,947 912,696
Ryland Mortgage Securities Corporation 1994-7A A2 7.000% 08/25/25 1,307,971 1,320,700
-----------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS 8,088,006
(IDENTIFIED COST $7,843,591)
BONDS (20.70%)
ASSET BACKED (3.86%)
Chase Manhattan Grantor Trust - CMGT 1996-B 6.610% 09/16/02 481,582 484,867
Chevy Chase Auto Receivables Trust - 1996-2 5.900% 07/15/03 602,212 600,622
Contimortgage Home Equity Loan Trust 1997-4 A7 6.630% 09/15/16 1,000,000 1,001,660
Green Tree Home Improvement Loan Trust-GTHIL 1994-D (1) 9.050% 01/15/15 1,000,000 1,060,625
Green Tree Financial Corporation - 1996-10 7.300% 11/15/28 800,000 837,936
Green Tree Financial Corporation - 1997-1 7.290% 03/02/28 800,000 837,230
-----------
4,822,940
PROJECT LOANS (16.84%)
Arbors of Little Rock 7.450% 01/01/39 1,520,368 1,554,434
Chapel Hill Assisted Living 7.750% 06/01/37 515,000 518,409
CLC Excelsior II Apartments 8.040% 02/01/39 1,000,000 1,013,270
Country Club Village 7.660% 10/25/33 1,675,000 1,742,660
Creekside Square Apartments 7.875% 07/01/37 999,362 1,048,015
</TABLE>
(1) Security has been segregated with the custodian to cover margin
requirements for the following open future contracts at
December 31, 1997.
<TABLE>
<CAPTION>
UNREALIZED
TYPE EXPIRATION CONTRACTS DEPRECIATION
<S> <C> <C> <C>
5 Year Note Future 03/21/98 3 $ 13
10 Year Note Future 03/21/98 195 1,028
30 Year Bond Future 03/21/98 20 3,261
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-41-
<PAGE>
ACCESSOR FUNDS, INC.
MORTGAGE SECURITIES PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31,1997
(CONTINUED)
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
PROJECT LOANS (CONTINUED)
Desert Mirage Apartments 7.250% 11/25/37 $1,500,000 $ 1,517,128
Enclave at Quail Crossing 7.750% 08/31/38 1,000,000 1,006,620
Enclave at Stonebrook 7.500% 08/29/37 1,028,984 1,059,378
Evergreen Towers 7.250% 01/01/39 1,084,396 1,101,421
Hillsboro Bay Club 7.950% 03/01/37 900,526 947,944
Merrill Lynch Mortgage Investors, Inc-MLMI 1992-B 7.430% 09/01/22 1,265,205 1,304,446
Orchard Park Inn 7.840% 03/01/28 1,019,310 1,072,869
Poplar Towers Apartments 7.750% 06/01/37 400,000 420,812
Prairie District Lofts 7.410% 12/01/38 945,000 962,689
River Bluff Apartments 7.750% 06/01/37 260,000 261,721
Rosewood 8.000% 07/01/37 1,001,856 1,059,228
Scottsdale Links 7.650% 07/01/38 973,266 1,014,326
Sunshine Gardens West 7.470% 11/01/38 1,260,398 1,295,697
Triangle Point 7.750% 09/30/38 983,331 1,022,280
Villages at Clear Springs 7.625% 09/30/38 1,095,600 1,134,730
------------
21,058,077
TOTAL BONDS (IDENTIFIED COST $25,260,162) 25,881,017
U.S. GOVERNMENT AND AGENCY BONDS (71.87%)
U.S. TREASURY BONDS (3.12%)
United States Treasury Bond 6.125% 11/15/27 2,335,000 2,399,213
United States Treasury Bond 6.250% 08/15/23 1,450,000 1,494,406
------------
3,893,619
U.S. TREASURY NOTES (16.03%)
United States Treasury Note 5.750% 11/30/02 6,900,000 6,906,472
United States Treasury Note 5.750% 08/15/00 5,335,000 5,373,348
United States Treasury Note 6.250% 02/28/02 5,920,000 6,031,000
United States Treasury Note 6.375% 03/31/01 700,000 713,125
United States Treasury Note 6.375% 05/15/00 1,000,000 1,015,000
------------
20,038,945
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (29.69%)
GNMA Pool 000571 8.200% 05/15/13 45,321 47,145
GNMA Pool 000572 8.200% 06/15/12 34,460 35,890
GNMA Pool 171468 8.000% 08/15/16 167,414 176,363
GNMA Pool 175724 8.000% 08/15/16 162,685 171,381
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-42-
<PAGE>
ACCESSOR FUNDS, INC.
MORTGAGE SECURITIES PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
(CONTINUED)
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (CONTINUED)
GNMA Pool 178457 8.000% 03/15/17 $ 100,681 $ 106,032
GNMA Pool 206767 8.000% 04/15/17 86,996 91,619
GNMA Pool 317527 8.000% 08/15/22 422,583 440,678
GNMA Pool 330319 7.500% 09/15/23 263,941 270,292
GNMA Pool 337121 6.500% 12/15/23 256,997 254,186
GNMA Pool 342552 7.500% 03/15/23 5,844,542 5,985,180
GNMA Pool 344185 7.500% 12/15/22 1,343,653 1,375,986
GNMA Pool 346521 7.500% 04/15/23 67,321 68,941
GNMA Pool 346900 6.500% 11/15/23 482,065 476,793
GNMA Pool 348689 7.500% 05/15/23 3,232,585 3,310,370
GNMA Pool 349477 7.500% 04/15/23 520,818 533,350
GNMA Pool 352000 6.500% 12/15/23 1,335,125 1,320,523
GNMA Pool 352001 6.500% 12/15/23 443,915 440,554
GNMA Pool 353847 7.500% 09/15/27 1,037,938 1,062,914
GNMA Pool 354094 7.500% 05/15/23 53,689 54,981
GNMA Pool 354711 6.500% 12/15/23 490,510 485,145
GNMA Pool 354721 6.500% 12/15/23 269,197 266,253
GNMA Pool 355067 6.500% 01/15/24 859,664 850,261
GNMA Pool 355616 7.500% 05/15/23 3,057,709 3,142,714
GNMA Pool 355829 6.500% 11/15/23 261,802 258,938
GNMA Pool 364048 7.500% 09/15/23 47,545 48,689
GNMA Pool 364402 6.500% 12/15/23 280,594 277,525
GNMA Pool 365974 6.500% 11/15/23 243,417 240,755
GNMA Pool 366252 6.500% 03/15/24 78,180 77,325
GNMA Pool 369258 6.500% 10/15/23 261,467 258,607
GNMA Pool 369280 6.500% 01/15/24 799,887 791,138
GNMA Pool 370962 6.500% 12/15/23 272,197 269,220
GNMA Pool 371250 6.500% 01/15/24 47,674 47,153
GNMA Pool 371611 6.500% 01/15/24 78,335 77,478
GNMA Pool 372083 6.500% 04/15/24 798,910 790,173
GNMA Pool 374886 6.500% 12/15/23 253,655 250,881
GNMA Pool 374888 6.500% 01/15/24 54,015 53,424
GNMA Pool 375305 8.000% 09/15/25 78,634 81,610
GNMA Pool 380252 6.500% 03/15/24 187,300 185,252
GNMA Pool 382387 6.500% 01/15/24 63,624 62,928
GNMA Pool 384262 6.500% 02/15/24 547,801 541,810
GNMA Pool 385289 6.500% 02/15/24 227,584 225,095
GNMA Pool 385638 6.500% 04/15/24 51,903 51,335
GNMA Pool 386952 6.500% 04/15/24 479,811 474,563
GNMA Pool 387022 8.000% 05/15/25 21,366 22,174
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-43-
<PAGE>
ACCESSOR FUNDS, INC.
MORTGAGE SECURITIES PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
(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 $ 59,698 $ 61,957
GNMA Pool 397911 8.000% 09/15/25 203,856 211,572
GNMA Pool 404645 8.000% 07/15/25 22,543 23,396
GNMA Pool 405188 8.000% 11/15/25 18,858 19,572
GNMA Pool 405528 8.000% 11/15/25 659,645 684,613
GNMA Pool 413357 8.000% 05/15/25 38,922 40,395
GNMA Pool 413462 8.000% 08/15/25 27,550 28,593
GNMA Pool 415323 8.000% 07/15/25 806,423 836,946
GNMA Pool 416844 8.000% 08/15/25 59,729 61,990
GNMA Pool 425670 7.625% 01/01/37 1,000,000 1,005,631
GNMA Pool 426659 8.500% 08/15/26 36,394 38,225
GNMA Pool 427768 7.500% 11/15/27 133,249 136,455
GNMA Pool 428537 7.500% 08/15/26 179,914 184,410
GNMA Pool 430230 7.500% 09/15/27 1,025,444 1,050,121
GNMA Pool 435855 8.500% 05/15/27 173,118 181,829
GNMA Pool 437541 8.500% 08/15/26 32,227 33,865
GNMA Pool 448687 7.500% 09/15/27 1,029,071 1,053,834
GNMA Pool 449183 7.500% 10/15/27 1,049,595 1,074,851
GNMA Pool 450585 7.500% 08/15/27 1,046,623 1,071,808
GNMA Pool 451843 7.500% 06/15/27 561,475 575,411
GNMA Pool 454969 7.500% 08/15/27 1,043,320 1,068,426
GNMA Pool 457485 7.500% 11/15/27 559,187 572,642
GNMA Pool 459094 7.500% 10/15/27 494,627 506,529
GNMA Pool 780487 7.250% 12/15/26 529,263 542,113
-----------
37,118,808
FEDERAL HOUSING AUTHORITY (FHA) (0.13%)
Federal Housing Authority - Blair Project 10.875% 08/01/28 154,538 160,720
FEDERAL HOME LOAN MORTGAGE CORPORATION (16.32%)
FGLMC A01598 7.000% 05/01/16 290,880 294,734
FGLMC C00262 7.000% 10/01/23 2,823,272 2,861,358
FGLMC C00418 7.000% 08/01/25 117,103 118,401
FGLMC D54041 7.000% 06/01/24 639,896 648,163
FGLMC D63271 7.000% 09/01/25 212,562 214,920
FGLMC D64731 7.000% 10/01/25 911,040 922,810
FGLMC D65112 7.000% 11/01/25 433,701 438,511
FGLMC D65424 7.000% 11/01/25 526,083 531,917
FGLMC D66671 7.000% 12/01/25 206,754 209,047
FGLMC D67991 7.000% 02/01/26 1,766,892 1,792,672
FGLMC D71143 7.000% 05/01/26 474,591 480,723
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-44-
<PAGE>
ACCESSOR FUNDS, INC.
MORTGAGE SECURITIES PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
(CONTINUED)
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
Federal Home Loan Mortgage Corporation (continued)
FGOLD E00478 7.500% 03/01/12 $ 555,398 $ 570,405
FGOLD E00523 6.500% 12/15/12 3,800,000 3,807,182
FGOLD E66727 7.500% 04/01/12 392,814 403,428
FGOLD E67224 7.000% 07/01/12 282,100 286,512
FGOLD E67293 7.000% 07/01/12 297,929 302,588
FGOLD E67294 7.000% 07/01/12 589,254 598,470
FHLMC 1563 8.750% 08/15/08 856,579 867,615
FHLMC 230105 8.750% 12/01/14 26,131 27,502
FHLMC A00892 9.000% 09/01/18 398,472 428,246
FHLMC C80335 7.000% 08/01/25 304,467 307,843
FHLMC D66340 7.000% 12/01/25 369,987 374,090
FHLMC E20190 6.500% 08/01/10 412,471 413,482
FHLMC E20193 6.500% 09/01/10 410,449 411,454
FHLMC E61583 6.500% 10/01/10 401,359 402,342
FHLMC E61633 6.500% 11/01/10 356,106 356,978
FHLMC E61643 6.500% 10/01/10 432,451 433,511
FHLMC E62414 6.500% 01/01/11 352,375 353,238
FHLMC E62838 6.500% 01/01/11 146,546 146,905
FHLMC E63081 6.500% 02/01/11 382,239 383,175
FHLMC E63833 6.500% 04/01/11 342,387 343,102
FHLMC E63846 6.500% 04/01/11 330,173 330,983
FHLMC E63924 6.500% 04/01/11 335,079 335,900
-----------
20,398,207
FEDERAL NATIONAL MORTGAGE ASSOCIATION (5.06%)
FNMA 93-102J 6.800% 06/25/23 2,000,000 2,022,488
FNMA 50726 7.000% 05/01/23 624,674 632,001
FNMA 50930 7.000% 11/01/23 895,129 905,628
FNMA 267862 7.000% 03/01/24 583,790 590,293
FNMA 284726 7.000% 05/01/24 19,810 20,031
FNMA 303751 8.000% 10/01/09 392,116 408,561
FNMA 303752 8.000% 05/01/22 243,514 255,069
FNMA 395811 7.000% 11/01/27 1,476,134 1,486,939
-----------
6,321,010
SMALL BUSINESS ADMINISTRATION AGENCY BONDS (1.52%)
Small Business Administration Participation Certificates 7.700% 09/01/16 1,207,897 1,289,183
Small Business Administration Participation Certificates 7.200% 10/01/16 580,126 604,835
-----------
1,894,018
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-45-
<PAGE>
ACCESSOR FUNDS, INC.
MORTGAGE SECURITIES PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
(CONCLUDED)
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C> <C>
TOTAL U.S. GOVERNMENT AND AGENCY BONDS $ 89,825,327
(IDENTIFIED COST $88,242,287) ------------
OPTIONS
U.S. Treasury 30 year put options, 11 contracts, expires 2/21/98 15,812
(IDENTIFIED COST $25,805)
SHORT-TERM INVESTMENTS AND CASH EQUIVALENTS (0.96%)
Federal Home Loan Bank Discount Note 6.000% 01/02/98 1,200,000 1,199,800
TOTAL SHORT-TERM INVESTMENTS AND CASH EQUIVALENTS
(IDENTIFIED COST $1,199,800) 1,199,800
------------
TOTAL INVESTMENTS (100.0%) (IDENTIFIED COST $122,571,645) $125,009,962
------------
------------
</TABLE>
<TABLE>
<CAPTION>
TBA SALE COMMITMENTS AT DECEMBER 31, 1997
(Proceeds receivable $8,196,250)
AGENCY PRINCIPAL DELIVERY COUPON RATE MARKET
AMOUNT DATE VALUE
<S> <C> <C> <C> <C>
GNMA $8,000,000 1/22/98 7.50% $8,192,504
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-46-
<PAGE>
ACCESSOR FUNDS, INC.
U.S. GOVERNMENT MONEY PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY BONDS (77.69%)
FEDERAL FARM CREDIT BANK (FFCB) (6.89%)
FFCB Discount Note 5.556% 03/23/98 $ 2,000,000 $ 1,975,655
FFCB Discount Note 5.410% 09/25/98 1,885,000 1,809,649
-----------
3,785,304
U.S. TREASURY BILLS (9.06%)
United States Treasury Bill 4.984% 01/02/98 3,000,000 2,999,590
United States Treasury Bill 5.180% 04/02/98 2,000,000 1,974,100
-----------
4,973,690
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (19.84%)
FNMA Discount Note 5.514% 01/22/98 3,000,000 2,990,463
FNMA Discount Note 5.562% 02/12/98 5,000,000 4,968,441
FNMA Discount Note 5.611% 05/21/98 3,000,000 2,936,300
-----------
10,895,204
FEDERAL HOME LOAN BANK (FHLB) (41.90%)
FHLB Discount Note 5.498% 01/07/98 5,000,000 4,995,542
FHLB Discount Note 5.547% 02/20/98 5,000,000 4,962,500
FHLB Discount Note 5.556% 03/06/98 5,000,000 4,951,910
FHLB Discount Note 5.556% 03/25/98 2,026,000 2,000,730
FHLB Discount Note 5.556% 04/15/98 2,239,000 2,204,072
FHLB Discount Note 5.561% 05/06/98 2,000,000 1,962,431
FHLB Discount Note 5.601% 07/30/98 2,000,000 1,937,000
-----------
23,014,185
TOTAL U.S. GOVERNMENT AND AGENCY BONDS 42,668,383
-----------
(IDENTIFIED COST $42,668,383)
SHORT-TERM INVESTMENTS AND CASH EQUIVALENTS (22.31%)
REPURCHASE AGREEMENTS
Fifth Third Bank Repurchase Agreement (collateralized by 5.700% 01/02/98 12,255,344 12,255,344
12,192,000 FHLMC Pool #G10657, 7.5%, 02/01/12, market -----------
value $12,500,616)
TOTAL SHORT-TERM INVESTMENTS AND CASH EQUIVALENTS
(IDENTIFIED COST $12,255,344) 12,255,344
-----------
TOTAL INVESTMENTS (100.0%) (IDENTIFIED COST $54,923,727) $54,923,727
-----------
-----------
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
-47-
<PAGE>
ACCESSOR FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
VALUE AND SMALL TO INTERNATIONAL
GROWTH INCOME MID CAP EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (1) (Note A) $87,647,128 $77,566,557 $122,027,785 $159,260,714
Repurchase agreements, at cost - 1,377,533 - -
----------- ----------- ------------ ------------
87,647,128 78,944,090 122,027,785 159,260,714
Cash - - - 3,219
Receivable for investments sold 1,434,926 - 3,117,385 -
Receivable for capital shares sold 66,021 2,158,210 3,262,084 432,641
Dividends and interest receivable 140,770 100,199 101,626 206,104
Other assets - 62,886 - 22,849
----------- ----------- ------------ ------------
TOTAL ASSETS 89,288,845 81,265,385 128,508,880 159,925,527
LIABILITIES:
Cash overdraft 1,041,935 - 3,066,255 -
Distributions payable - - - -
Payable for investments purchased 193,382 - - 8,059,929
Payable for capital shares repurchased 5,631 4,222 6,743 6,422
Open forward currency contracts - - - 24,253
Payable due to Bennington (Note B) 36,247 30,269 64,964 64,677
Money managers fee payable (Note B) 56,332 63,547 92,503 200,619
TBA sale commitments, at value - - - -
Accrued expenses and other liabilities 48,312 40,725 56,977 128,496
----------- ----------- ------------ ------------
TOTAL LIABILITIES 1,381,839 138,763 3,287,442 8,484,396
----------- ----------- ------------ ------------
NET ASSETS $87,907,006 $81,126,622 $125,221,438 $151,441,131
----------- ----------- ------------ ------------
----------- ----------- ------------ ------------
NET ASSETS CONSIST OF:
Paid-in capital $69,825,175 $65,492,459 $95,702,152 $138,760,264
Net unrealized appreciation of investments,
receivables, payables, and futures contracts 15,609,450 14,432,370 23,310,384 12,883,574
Undistributed net investment income 1,717 259 - -
Accumulated net realized gain (loss) on investments, future
contracts, options, and foreign currencies 2,470,664 1,201,534 6,311,597 -
Accumulated distributions in excess of net investment income - - (102,695) -
Accumulated distributions in excesss of realized gain in
investments, futures contracts, and foreign currencies - - - (202,707)
----------- ----------- ------------ ------------
NET ASSETS $87,907,006 $81,126,622 $125,221,438 $151,441,131
----------- ----------- ------------ ------------
----------- ----------- ------------ ------------
Total shares outstanding at end of period 4,074,644 3,884,680 5,739,844 10,213,260
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE $ 21.57 $ 20.88 $ 21.82 $ 14.83
----------- ----------- ------------ ------------
----------- ----------- ------------ ------------
(1) Investments at cost $72,037,678 $63,149,537 $98,717,401 $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 (1) (Note A) $50,686,505 $40,319,782 $125,009,962 $42,668,383
Repurchase agreements, at cost 2,036,173 - - 12,255,344
----------- ----------- ------------ ------------
52,722,678 40,319,782 125,009,962 54,923,727
Cash - 4,403 5,054 -
Receivable for investments sold - - 9,711,839 -
Receivable for capital shares sold 1,774,129 3,580 206,912 -
Dividends and interest receivable 761,234 663,586 954,250 1,940
Other assets - - 104,059 -
----------- ----------- ------------ ------------
TOTAL ASSETS 55,258,041 40,991,351 135,992,076 54,925,667
LIABILITIES:
Cash overdraft - - - -
Distributions payable - - - 196,414
Payable for investments purchased - - 17,905,283 3,783,749
Payable for capital shares repurchased 307 1,000 6,087 100
Open forward currency contracts - - - -
Payable due to Bennington (Note B) 15,998 12,534 33,524 10,150
Money managers fee payable (Note B) 19,219 17,687 62,180 -
TBA sale commitments, at value - - 8,192,504 -
Accrued expenses and other liabilities 25,607 18,088 45,451 25,361
----------- ----------- ------------ ------------
TOTAL LIABILITIES 61,131 49,309 26,245,029 4,015,774
----------- ----------- ------------ ------------
NET ASSETS $55,196,910 $40,942,042 $109,747,047 $50,909,893
----------- ----------- ------------ ------------
----------- ----------- ------------ ------------
NET ASSETS CONSIST OF:
Paid-in capital $54,900,191 $40,604,520 $107,043,478 $50,914,742
Net unrealized appreciation of investments,
receivables, payables, and futures contracts 1,677,578 389,686 2,437,396 -
Undistributed net investment income - - - -
Accumulated net realized gain (loss) on investments, future
contracts, options, and foreign currencies (1,380,859) (47,745) 303,719 (4,849)
Accumulated distributions in excess of net investment income - (4,419) (37,546) -
Accumulated distributions in excesss of realized gain in
investments, futures contracts, and foreign currencies - - - -
----------- ----------- ------------ ------------
NET ASSETS $55,196,910 $40,942,042 $109,747,047 $50,909,893
----------- ----------- ------------ ------------
----------- ----------- ------------ ------------
Total shares outstanding at end of period 4,528,468 3,337,535 8,712,125 50,915,165
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE $ 12.19 $ 12.27 $ 12.60 $ 1.00
----------- ----------- ------------ ------------
----------- ----------- ------------ ------------
(1) Investments at cost $49,008,927 $39,930,096 $122,571,645 $42,668,383
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
-48-
<PAGE>
ACCESSOR FUNDS, INC.
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED DECEMBER 31, 1997
<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 $190,760 for
International Equity Portfolio) $1,193,289 $1,268,314 $1,186,042 $1,339,416
Interest 32,531 202,819 140,985 260,249
---------- ---------- ---------- ----------
TOTAL INVESTMENT INCOME 1,225,820 1,471,133 1,327,027 1,599,665
EXPENSES:
Management fees (Note B) 367,929 278,828 691,560 646,324
Money managers fees (Note B) 164,859 183,776 354,496 647,331
Transfer agent and administration fees (Note B) 104,335 81,029 145,118 146,406
Fund accounting fees 51,264 37,485 52,705 83,857
Legal fees 17,637 18,791 19,022 17,788
Audit fees 9,345 9,346 9,411 10,615
Custodian fees 8,903 4,597 12,237 210,634
Amortization of deferred organizational expenses 8,930 8,932 8,930 13,870
Registration fees 15,192 17,874 22,155 19,298
Directors fees 2,100 2,100 2,100 2,100
Printing/Postage expense 8,958 7,835 9,300 9,931
Other 4,380 3,873 3,811 28,215
---------- ---------- ---------- ----------
TOTAL EXPENSES 763,832 654,466 1,330,845 1,836,369
---------- ---------- ---------- ----------
NET INVESTMENT INCOME (LOSS) 461,988 816,667 (3,818) (236,704)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on:
Investments 16,907,790 9,186,661 24,033,927 7,350,735
Foreign exchange - - - (1,829,038)
Options - - - (616,504)
Change in unrealized appreciation of investments 4,574,902 7,639,735 14,019,209 4,566,963
Change in unrealized appreciation of foreign currency - - - 53,742
---------- ---------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS 21,482,692 16,826,396 38,053,136 9,525,898
---------- ---------- ---------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $21,944,680 $17,643,063 $38,049,318 $9,289,194
---------- ---------- ---------- ----------
<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 $190,760 for
International Equity Portfolio) $ - $ - $ - $ -
Interest 3,315,027 2,445,593 6,138,870 3,074,779
TOTAL INVESTMENT INCOME 3,315,027 2,445,593 6,138,870 3,074,779
---------- ---------- ---------- ----------
EXPENSES:
Management fees (Note B) 177,340 145,308 326,347 139,970
Money managers fees (Note B) 73,892 60,545 188,413 -
Transfer agent and administration fees (Note B) 71,172 57,863 115,098 71,414
Fund accounting fees 24,431 28,874 43,454 24,563
Legal fees 17,967 17,967 17,788 18,155
Audit fees 7,534 7,534 11,537 12,199
Custodian fees 4,029 3,491 13,020 4,395
Amortization of deferred organizational expenses 6,846 3,350 6,126 2,470
Registration fees 15,845 9,354 11,217 12,074
Directors fees 2,678 2,133 2,099 2,168
Printing/Postage expense 7,904 6,407 9,299 4,714
Other 6,196 5,218 13,805 8,556
---------- ---------- ---------- ----------
TOTAL EXPENSES 415,834 348,044 758,203 300,678
---------- ---------- ---------- ----------
NET INVESTMENT INCOME (LOSS) 2,899,193 2,097,549 5,380,667 2,774,101
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on:
Investments 36,784 6,148 1,004,867 (5,036)
Foreign exchange - - - -
Options - - 111,076 -
Change in unrealized appreciation of investments 1,080,463 412,603 1,939,701 -
Change in unrealized appreciation of foreign currency - - - -
---------- ---------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS 1,117,247 418,751 3,055,644 (5,036)
---------- ---------- ---------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $4,016,440 $2,516,300 $8,436,311 $2,769,065
---------- ---------- ---------- ----------
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
- 49 -
<PAGE>
ACCESSOR FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
GROWTH PORTFOLIO VALUE AND INCOME PORTFOLIO
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
-------------------------- --------------------------
INCREASE (DECREASE) IN NET ASSETS: 1997 1996 1997 1996
<S> <C> <C> <C> <C>
From operations:
Net investment income $461,988 $573,187 $816,667 $444,444
Net realized gain on investments 16,907,790 5,420,155 9,186,661 3,016,614
Change in unrealized appreciation of investments 4,574,902 5,099,753 7,639,735 3,381,302
----------- ----------- ----------- -----------
Net increase in net assets resulting from operations 21,944,680 11,093,095 17,643,063 6,842,360
Distributions from:
Net investment income (460,271) (574,634) (816,408) (444,511)
Net realized gain on investments (15,608,927) (5,346,233) (8,426,264) (3,236,898)
----------- ----------- ----------- -----------
Total distributions (16,069,198) (5,920,867) (9,242,672) (3,681,409)
Capital share transactions:
Proceeds from subscriptions 42,600,128 23,578,680 45,978,728 14,623,144
Reinvestment of distributions 11,189,025 5,043,940 6,614,169 2,836,151
Cost of redemptions (32,343,403) (21,740,654) (16,233,640) (9,168,157)
----------- ----------- ----------- -----------
Net increase resulting from capital share transactions 21,445,750 6,881,966 36,359,257 8,291,138
Total increase in net assets 27,321,232 12,054,194 44,759,648 11,452,089
NET ASSETS:
Beginning of period 60,585,774 48,531,580 36,366,974 24,914,885
----------- ----------- ----------- -----------
End of period $87,907,006 $60,585,774 $81,126,622 $36,366,974
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
-50-
<PAGE>
ACCESSOR FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
SMALL TO MID CAP PORTFOLIO INTERNATIONAL EQUITY PORTFOLIO
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
-------------------------- ------------------------------
INCREASE (DECREASE) IN NET ASSETS: 1997 1996 1997 1996
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss) $(3,818) $212,770 $(236,704) $(142,265)
Net realized gain on investments, options,
and foreign currency 24,033,927 10,180,396 4,905,193 2,121,287
Change in unrealized appreciation of investments 14,019,209 2,643,375 4,620,705 4,841,101
----------- ----------- ----------- -----------
Net increase in net assets resulting from operations 38,049,318 13,036,541 9,289,194 6,820,123
Distributions from:
Net investment income - (218,589) - -
Net realized gain on investments (19,306,498) (9,374,655) (4,905,193) (2,243,683)
Excess of net investment income (102,695) - - -
Excess of net realized gain on investments - - (202,707) (107,899)
----------- ----------- ----------- -----------
Total distributions (19,409,193) (9,593,244) (5,107,900) (2,351,582)
Capital share transactions:
Proceeds from subscriptions 114,006,085 13,443,968 93,636,071 33,602,525
Reinvestment of distributions 11,867,758 8,335,548 3,517,461 1,952,680
Cost of redemptions (84,771,366) (9,546,683) (22,913,075) (6,106,841)
----------- ----------- ----------- -----------
Net increase resulting from capital share transactions 41,102,477 12,232,833 74,240,457 29,448,364
Total increase in net assets 59,742,602 15,676,130 78,421,751 33,916,905
NET ASSETS:
Beginning of period 65,478,836 49,802,706 73,019,380 39,102,475
------------ ----------- ------------ -----------
End of period $125,221,438 $65,478,836 $151,441,131 $73,019,380
------------ ----------- ------------ -----------
------------ ----------- ------------ -----------
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
-51-
<PAGE>
ACCESSOR FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE SHORT-INTERMEDIATE
FIXED-INCOME PORTFOLIO FIXED-INCOME PORTFOLIO
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
---------------------------- ----------------------------
INCREASE (DECREASE) IN NET ASSETS: 1997 1996 1997 1996
<S> <C> <C> <C> <C>
From operations:
Net investment income $ 2,899,193 $ 2,717,453 $ 2,097,549 $ 1,725,396
Net realized gain (loss) on investments 36,784 (25,218) 6,148 (22,539)
Change in unrealized appreciation (depreciation)
of investments 1,080,463 (1,128,675) 412,603 (432,765)
------------ ----------- ------------ -----------
Net increase in net assets resulting from operations 4,016,440 1,563,560 2,516,300 1,270,092
Distributions from:
Net investment income (2,900,522) (2,717,303) (2,098,114) (1,724,831)
Excess of net investment income - - (4,419) -
------------ ----------- ------------ -----------
Total distributions (2,900,522) (2,717,303) (2,102,533) (1,724,831)
Capital share transactions:
Proceeds from subscriptions 22,943,316 25,071,653 20,305,381 4,487,350
Reinvestment of distributions 1,033,657 753,737 249,894 202,949
Cost of redemptions (22,143,716) (9,302,173) (16,727,519) (2,807,002)
------------ ----------- ------------ -----------
Net increase resulting from capital share transactions 1,833,257 16,523,217 3,827,756 1,883,297
Total increase in net assets 2,949,175 15,369,474 4,241,523 1,428,558
NET ASSETS:
Beginning of period 52,247,735 36,878,261 36,700,519 35,271,961
------------ ----------- ------------ -----------
End of period $ 55,196,910 $52,247,735 $ 40,942,042 $36,700,519
------------ ----------- ------------ -----------
------------ ----------- ------------ -----------
</TABLE>
See notes to financial statements
-52-
<PAGE>
ACCESSOR FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT
MORTGAGE SECURITIES PORTFOLIO MONEY PORTFOLIO
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
------------------------------ --------------------------
INCREASE (DECREASE) IN NET ASSETS: 1997 1996 1997 1996
<S> <C> <C> <C> <C>
From operations:
Net investment income $ 5,380,667 $ 3,819,516 $ 2,774,101 $ 2,316,168
Net realized gain (loss) on investments 1,115,943 (257,919) (5,036) 1,002
Change in unrealized appreciation (depreciation)
of investments 1,939,701 (470,734) - -
------------ ----------- ------------- ------------
Net increase in net assets resulting from operations 8,436,311 3,090,863 2,769,065 2,317,170
Distributions from:
Net investment income (5,380,667) (3,819,554) (2,774,283) (2,316,222)
Excess of net invest income (37,546) - - -
Net realized gain on investments (408,792) - - (1,002)
------------ ----------- ------------- ------------
Total distributions (5,827,005) (3,819,554) (2,774,283) (2,317,224)
Capital share transactions:
Proceeds from subscriptions 46,306,046 29,029,245 93,789,512 89,392,625
Reinvestment of distributions 1,482,818 1,196,311 59,844 93,536
Cost of redemptions (14,513,511) (5,464,973) (104,606,175) (69,696,535)
------------ ----------- ------------- ------------
Net increase (decrease) resulting from capital share
transactions 33,275,353 24,760,583 (10,756,819) 19,789,626
Total increase (decrease) in net assets 35,884,659 24,031,892 (10,762,037) 19,789,572
NET ASSETS:
Beginning of period 73,862,388 49,830,496 61,671,930 41,882,358
------------ ----------- ------------- ------------
End of period $109,747,047 $73,862,388 $ 50,909,893 $ 61,671,930
------------ ----------- ------------- ------------
------------ ----------- ------------- ------------
</TABLE>
See notes to financial statements
-53-
<PAGE>
ACCESSOR FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1997
- --------------------------------------------------------------------------------
A. ORGANIZATION AND ACCOUNTING POLICIES
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 active 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") (collectively, the "Portfolios"). The Fund
was incorporated in Maryland on June 10, 1991.
The following is a summary of significant accounting policies consistently
followed by the Portfolios. The policies are in conformity with generally
accepted accounting principles:
1. SECURITY VALUATION
Securities for which the primary market is a national securities
exchange are valued at the last sale price on such exchange on the day
of valuation or, if no sale occurred on such day, at the closing bid
price. Investments for which the primary market is the
over-the-counter market are valued at the closing bid price.
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. Investments in the
Money Portfolio and short-term investments maturing in 60 days or less
are valued at amortized cost, which approximates market value.
2. SECURITY TRANSACTIONS
Securities transactions are accounted for on the date the securities
are purchased or sold (trade date). All premiums and discounts are
amortized or accreted for both financial statement and tax reporting
purposes as required by Federal Income Tax Regulations. Realized
gains and losses on the sale of investments are determined on the
identified cost basis.
3. 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 in the dates of the
transactions.
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 as a result of, among other factors,
the level of governmental supervision and regulation of foreign
securities markets and the possibility of political or economic
instability.
-54-
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
4. DERIVATIVE FINANCIAL INSTRUMENTS
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 and futures contracts.
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.
DERIVATIVE FINANCIAL INSTRUMENTS HELD OR ISSUED FOR PURPOSES OTHER
THAN TRADING
FUTURES CONTRACTS - The Portfolios (other than the Money Portfolio)
are permitted to enter into financial futures contracts, stock index
futures contracts and related options ("future contracts") in
accordance with their investment objectives. 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 underlying security, 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. 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.
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. When the
contract is closed, a realized gain or loss is recorded 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.
-55-
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
5. INVESTMENT INCOME
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. Interest income is recorded on
the accrual basis and includes amortization of discounts and premiums.
6. DISTRIBUTIONS
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. These differences may arise due to
differing treatments for mortgage-backed securities, deferral of
losses due to wash sales, futures and options activity and
post-October losses. Accordingly, the amount of the net investment
income and net realized gains reported on these financial statements
may differ from that reported on the Fund's tax return, and
consequently, the character of distributions to shareholders reported
in the financial highlights may differ from that reported on Form
1099-DIV.
7. FEDERAL INCOME TAXES
It is each Portfolio's intention to comply with the requirements of
the Internal Revenue Code ("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 of 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 statements.
8. TBA SALE COMMITMENTS
The Portfolios may enter into TBA sale commitments to hedge its
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
-56-
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
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 of loss from the sale of the
securities based upon the unit price established at the date the
commitment was entered into.
9. REPURCHASE AGREEMENTS
The Portfolios may enter into agreements with institutions that the
Portfolios' manager and money managers have determined to be
creditworthy to purchase securities and to resell them (repurchase
agreements) at a future date. It is the Portfolios' policy to take
custody of securities purchased and to ensure that the market value
including accrued interest of the collateral is greater than the
amount owed to the Portfolios under each such repurchase agreement.
10. ORGANIZATIONAL EXPENSES
Organizational expenses are being amortized on a straight-line basis
over a period not to exceed 60 months beginning on the date of
commencement of operations.
11. 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.
-57-
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
B. AGREEMENTS
1. MANAGEMENT
The Fund has a management agreement with Bennington Capital Management
L.P. ("Bennington"). Pursuant to this agreement, Bennington provides
or oversees the provision of all general management, investment
advisory and portfolio management services. Fees currently paid to
Bennington under the management agreement for providing these services
are as follows:
<TABLE>
<CAPTION>
MANAGEMENT FEES AS A
PERCENTAGE OF AVERAGE
PORTFOLIO DAILY NET ASSETS
--------- ----------------
<S> <C>
Growth .45%
Value and Income .45
Small to Mid Cap .60
International Equity .55
Intermediate Fixed-Income .36
Short-Intermediate Fixed-Income .36
Mortgage Securities .36
U.S. Government Money .25
</TABLE>
2. MONEY MANAGERS
Each Portfolio's assets (other than the Money Portfolio) 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:
PORTFOLIO INDEX
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
-58-
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
For the year ended December 31, 1997, 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 .10% - .15% .25%
(See Shareholder Letter) 2nd Quarter .10 - .05 .15
3rd Quarter .10 .08% .00 .18
4th Quarter .10 .10 - .20
Value and Income 1st Quarter .10 - .15 .25
2nd Quarter .10 - .20 .30
3rd Quarter .10 - .20 .30
4th Quarter .10 - .20 .30
Small to Mid Cap 1st Quarter .10 - .22 .32
2nd Quarter .10 - .22 .32
3rd Quarter .10 - .22 .32
4th Quarter .10 - .22 .32
International Equity 1st Quarter .20 - .30 .50
2nd Quarter .20 - .30 .50
3rd Quarter .20 - .40 .60
4th Quarter .20 - .40 .60
Intermediate Fixed- 1st Quarter .07 - .08 .15
Income 2nd Quarter .07 - .08 .15
3rd Quarter .07 - .08 .15
4th Quarter .07 - .08 .15
Short-Intermediate 1st Quarter .07 - .08 .15
Fixed-Income 2nd Quarter .07 - .08 .15
3rd Quarter .07 - .08 .15
4th Quarter .07 - .08 .15
Mortgage Securities 1st Quarter .07 - .16 .23
2nd Quarter .07 - .16 .23
3rd Quarter .07 - .16 .23
4th Quarter .07 - .16 .23
</TABLE>
Bennington directly manages the assets of the Money Portfolio, therefore
there is no Money Manager Fee associated with this Portfolio.
3. DISTRIBUTION PLAN
The Fund has adopted a Distribution Plan under Rule 12b-1 under the
Investment Company Act of 1940 pursuant to which Bennington may make
payments to persons rendering assistance in the distribution or
retention of the Fund's shares or servicing of shareholder accounts.
The Fund does not reimburse
-59-
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
Bennington for these payments. Bennington made no such payments for
the year ended December 31, 1997.
4. 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.
C. DIRECTOR'S FEES
Outside directors of the Fund are paid $2,000 per meeting, plus
out-of-pocket costs associated with attending Board Meetings.
D. 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 PORTFOLIO VALUE AND INCOME PORTFOLIO
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
----------------------- --------------------------
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Shares outstanding - Beginning
of period 3,105,644 2,698,148 2,048,702 1,566,206
Shares subscribed 1,828,825 1,273,203 2,267,839 855,546
Shares issued on reinvestment
of distributions 511,145 255,799 317,161 159,904
Shares redeemed (1,370,970) (1,121,506) (749,022) (532,954)
----------- ----------- --------- ---------
Shares outstanding - End of
period 4,074,644 3,105,644 3,884,680 2,048,702
----------- ----------- --------- ---------
----------- ----------- --------- ---------
</TABLE>
<TABLE>
<CAPTION>
SMALL TO MID CAP PORTFOLIO INTERNATIONAL EQUITY PORTFOLIO
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
----------------------- -----------------------
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Shares outstanding - Beginning
of period 3,479,886 2,829,475 5,281,501 3,114,599
----------- --------- ---------- ---------
----------- --------- ---------- ---------
Shares subscribed 5,314,273 707,092 6,193,641 2,472,796
----------- --------- ---------- ---------
----------- --------- ---------- ---------
Shares issued on reinvestment
of distributions 544,550 444,401 235,796 142,116
----------- --------- ---------- ---------
----------- --------- ---------- ---------
Shares redeemed (3,598,865) (501,082) (1,497,678) (448,010)
----------- --------- ---------- ---------
----------- --------- ---------- ---------
Shares outstanding - End of
period 5,739,844 3,479,886 10,213,260 5,281,501
----------- --------- ---------- ---------
----------- --------- ---------- ---------
</TABLE>
-60-
<PAGE>
<TABLE>
<CAPTION>
INTERMEDIATE SHORT-INTERMEDIATE
FIXED-INCOME PORTFOLIO FIXED-INCOME PORTFOLIO
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
----------------------- -----------------------
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Shares outstanding - Beginning
of period 4,388,744 2,999,800 3,017,500 2,862,134
----------- --------- ----------- ----------
----------- --------- ----------- ----------
Shares subscribed 1,908,703 2,106,308 1,669,600 368,860
----------- --------- ----------- ----------
----------- --------- ----------- ----------
Shares issued on reinvestment
of distributions 86,534 63,707 20,522 16,714
----------- --------- ----------- ----------
----------- --------- ----------- ----------
Shares redeemed (1,855,513) (781,071) (1,370,087) (230,208)
----------- --------- ----------- ----------
----------- --------- ----------- ----------
Shares outstanding - End of
period 4,528,468 4,388,744 3,337,535 3,017,500
----------- --------- ----------- ----------
----------- --------- ----------- ----------
</TABLE>
<TABLE>
<CAPTION>
MORTGAGE U.S. GOVERNMENT
SECURITIES PORTFOLIO MONEY PORTFOLIO
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
----------------------- -----------------------
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Shares outstanding - Beginning
of period 6,037,920 4,024,225 61,671,797 41,882,171
----------- --------- ------------- ------------
----------- --------- ------------- ------------
Shares subscribed 3,723,266 2,364,663 93,789,699 89,392,625
----------- --------- ------------- ------------
----------- --------- ------------- ------------
Shares issued on reinvestment
of distributions 119,485 98,724 59,844 93,536
----------- --------- ------------- ------------
----------- --------- ------------- ------------
Shares redeemed (1,168,546) (449,692) (104,606,175) (69,696,535)
----------- --------- ------------- ------------
----------- --------- ------------- ------------
Shares outstanding - End of
period 8,712,125 6,037,920 50,915,165 61,671,797
----------- --------- ------------- ------------
----------- --------- ------------- ------------
</TABLE>
E. SECURITIES TRANSACTIONS
During the year ended December 31, 1997, purchases and sales of
investments, other than short-term investments and government securities
aggregated, were as follows:
<TABLE>
<CAPTION>
PORTFOLIO PURCHASES SALES
--------- --------- -----
<S> <C> <C>
Growth $109,510,648 $103,625,748
Value and Income 64,993,894 39,161,535
Small to Mid Cap 163,727,443 142,690,091
International Equity 286,962,095 220,242,186
Intermediate Fixed-Income 18,971,657 14,951,652
Short-Intermediate Fixed-Income 4,054,633 1,760,000
Mortgage Securities 12,735,177 5,094,843
</TABLE>
-61-
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
During the year ended December 31, 1997, purchases and sales of long-term
U.S. Government Securities, were as follows:
<TABLE>
<CAPTION>
PORTFOLIO 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>
The identified cost for federal income tax purposes of investments owned by
each Portfolio and their respective gross unrealized
appreciation/(depreciation) at December 31, 1997 were as follows:
<TABLE>
<CAPTION>
NET
IDENTIFIED GROSS UNREALIZED APPRECIATION/
PORTFOLIO COST APPRECIATION (DEPRECIATION) (DEPRECIATION)
--------- ---- ------------ -------------- --------------
<S> <C> <C> <C> <C>
Growth $ 72,194,041 $15,803,718 $ (350,631) $15,453,087
Value and Income 64,548,863 15,770,387 (1,375,159) 14,395,228
Small to Mid Cap 98,717,401 27,590,230 (4,279,846) 23,310,384
International Equity 146,596,711 16,379,407 (3,715,404) 12,664,003
Intermediate Fixed-Income 51,047,089 1,685,925 (10,336) 1,675,589
Short-Intermediate Fixed-
Income 39,930,096 410,144 (20,458) 389,686
Mortgage Securities 122,571,645 2,487,212 (49,816) 2,437,396
U.S. Government Money 54,923,727 - - -
</TABLE>
F. CAPITAL LOSS CARRYOVERS
At December 31, 1997, for Federal income tax purposes, the following
Portfolios had capital loss carryovers which may be applied against future
net taxable realizable gains of each succeeding year until the earlier of
its utilization or expiration.
<TABLE>
<CAPTION>
EXPIRES IN: EXPIRES IN: EXPIRES IN:
PORTFOLIO 2002 2004 2005
--------- ---- ---- ----
<S> <C> <C> <C>
Intermediate Fixed-Income $1,301,187 $ - $ -
Short-Intermediate Fixed-Income 26,177 22,539 -
U.S. Government Money - - 4,849
</TABLE>
-62-
<PAGE>
ACCESSOR FUNDS, INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
GROWTH PORTFOLIO
------------------------------------------------------------------
1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $19.51 $17.99 $14.37 $14.16 $13.06
------ ------ ------- ------- -------
Net investment income 0.13 0.19 0.15 0.13 0.14
Net realized and unrealized gain on investments 6.31 3.35 4.76 0.42 1.69
------ ------ ------- ------- -------
Total from investment operations 6.41 3.54 4.91 0.55 1.83
------ ------ ------- ------- -------
Distributions from net investment income (0.13) (0.19) (0.15) (0.13) (0.14)
Distributions from capital gains (4.25) (1.83) (1.14) (0.21) (0.59)
------ ------ ------- ------- -------
Total distributions (4.38) (2.02) (1.29) (0.34) (0.73)
------ ------ ------- ------- -------
Net Asset Value, end of period $21.57 $19.51 $17.99 $14.37 $14.16
------ ------ ------- ------- -------
------ ------ ------- ------- -------
Total return (1) 33.24% 19.83% 34.32% 3.99% 14.21%
------ ------ ------- ------- -------
------ ------ ------- ------- -------
Net assets, end of period (in thousands) $87,907 $60,586 $48,532 $23,534 $8,986
------ ------ ------- ------- -------
------ ------ ------- ------- -------
Ratios of expenses to average net assets:
After Bennington fee waivers 0.93% 1.13% 1.26% 1.76% 1.21%
------ ------ ------- ------- -------
------ ------ ------- ------- -------
Before Bennington fee waivers 0.93% 1.13% 1.26% 1.76 % 2.64%
------ ------ ------- ------- -------
------ ------ ------- ------- -------
Ratio of net investment income to average net assets
After Bennington fee waivers 0.56% 0.97% 0.97% 1.02% 1.16%
------ ------ ------- ------- -------
------ ------ ------- ------- -------
Before Bennington fee waivers 0.56% 0.97% 0.97% 0.95% (0.27)%
------ ------ ------- ------- -------
------ ------ ------- ------- -------
Portfolio turnover rate 131.75% 81.79% 99.73% 57.71% 60.92%
------ ------ ------- ------- -------
------ ------ ------- ------- -------
Average commission rate paid (2) $0.0401 $0.0200
------ ------
------ ------
</TABLE>
(1) 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 respecive payment dates of each Portfolio.
(2) 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 1996.
See notes to financial statements
-63-
<PAGE>
ACCESSOR FUNDS, INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
VALUE AND INCOME PORTFOLIO
------------------------------------------------------------------
1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $17.75 $15.91 $13.01 $13.58 $12.58
------- ------- ------- ------- -------
Net investment income 0.26 0.24 0.33 0.25 0.25
Net realized and unrealized gain (loss) on investments 5.54 3.51 3.96 (0.51) 1.59
------- ------- ------- ------- -------
Total from investment operations 5.80 3.75 4.29 (0.26) 1.84
------- ------- ------- ------- -------
Distributions from net investment income (0.26) (0.24) (0.33) (0.25) (0.25)
Distributions from capital gains (2.41) (1.67) (1.06) (0.05) (0.59)
Distributions in excess of capital gains - - - (0.01) -
------- ------- ------- ------- -------
Total distributions (2.67) (1.91) (1.39) (0.31) (0.84)
------- ------- ------- ------- -------
Net Asset Value, end of period $20.88 $17.75 $15.91 $13.01 $13.58
------- ------- ------- ------- -------
------- ------- ------- ------- -------
Total return (1) 32.94% 23.94% 33.25% (1.93)% 14.69%
------- ------- ------- ------- -------
Net assets, end of period (in thousands) $81,127 $36,367 $24,915 $19,999 $11,225
------- ------- ------- ------- -------
------- ------- ------- ------- -------
Ratios of expenses to average net assets:
After Bennington fee waivers 1.05% 1.21% 1.40% 1.77% 1.21%
------- ------- ------- ------- -------
------- ------- ------- ------- -------
Before Bennington fee waivers 1.05% 1.21% 1.40% 1.85% 2.61%
------- ------- ------- ------- -------
------- ------- ------- ------- -------
Ratio of net investment income to average net assets
After Bennington fee waivers 1.32% 1.43% 2.18% 2.00% 2.02%
------- ------- ------- ------- -------
------- ------- ------- ------- -------
Before Bennington fee waivers 1.32% 1.43% 2.18% 1.92% 0.62%
------- ------- ------- ------- -------
------- ------- ------- ------- -------
Portfolio turnover rate 68.14% 93.54% 100.88% 54.26% 64.56%
------- ------- ------- ------- -------
------- ------- ------- ------- -------
Average commission rate paid (2) $0.0476 $0.0500
------- -------
------- -------
</TABLE>
(1) 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 respecive payment dates of each Portfolio.
(2) 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 1996.
See notes to financial statements
-64-
<PAGE>
ACCESSOR FUNDS, INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
SMALL TO MID CAP PORTFOLIO
-------------------------------------------------------------------
1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $18.82 $17.60 $14.08 $14.79 $13.56
------- ------- ------- ------- -------
Net investment income (loss) - 0.07 0.06 (0.01) 0.04
Net realized and unrealized gain (loss) on investments 6.75 4.22 4.42 (0.59) 1.91
------- ------- ------- ------- -------
Total from investment operations 6.75 4.29 4.48 (0.60) 1.95
------- ------- ------- ------- -------
Distributions from net investment income - (0.07) (0.06) - (0.04)
Distributions from capital gains (3.73) (3.00) (0.90) (0.10) (0.68)
Distribution in excess of net investment income (0.02) - - - -
Return of capital distributions - - - (0.01) -
------- ------- ------- ------- -------
Total distributions (3.75) (3.07) (0.96) (0.11) (0.72)
------- ------- ------- ------- -------
Net Asset Value, end of period $21.82 $18.82 $17.60 $14.08 $14.79
------- ------- ------- ------- -------
------- ------- ------- ------- -------
Total return (1) 36.14% 24.85% 31.98% (4.07)% 14.39%
------- ------- ------- ------- -------
------- ------- ------- ------- -------
Net assets, end of period (in thousands) $125,221 $65,479 $49,803 $24,148 $9,791
------- ------- ------- ------- -------
------- ------- ------- ------- -------
Ratios of expenses to average net assets:
After Bennington fee waivers 1.15% 1.17% 1.31% 1.98% 1.55%
------- ------- ------- ------- -------
------- ------- ------- ------- -------
Before Bennington fee waivers 1.15% 1.17% 1.31% 2.38% 3.33%
------- ------- ------- ------- -------
------- ------- ------- ------- -------
Ratio of net investment income to average net assets
After Bennington fee waivers - % 0.37% 0.41% (0.18)% 0.30%
------- ------- ------- ------- -------
------- ------- ------- ------- -------
Before Bennington fee waivers - % 0.37% 0.41% (0.58)% (1.48)%
------- ------- ------- ------- -------
------- ------- ------- ------- -------
Portfolio turnover rate 129.98% 113.44% 84.26% 30.14% 59.20%
------- ------- ------- ------- -------
------- ------- ------- ------- -------
Average commission rate paid (2) $0.0279 $0.0300
------- -------
------- -------
</TABLE>
(1) 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 respecive payment dates of each Portfolio.
(2) 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 1996.
See notes to financial statements
-65-
<PAGE>
ACCESSOR FUNDS, INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
------------------------------------------------------
1997 1996 1995 1994(1)
<S> <C> <C> <C> <C>
Net Asset Value, beginning of period $13.83 $12.55 $11.67 $12.00
-------- -------- -------- ---------
Net investment income (loss) (0.02) (0.06) 0.05 0.01
Net realized and unrealized gain (loss) on investments 1.54 1.80 0.83 (0.34)
-------- -------- -------- ---------
Total from investment operations 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 distributio ns (0.52) (0.46) - -
-------- -------- -------- ---------
Net Asset Value, end of period $14.83 $13.83 $12.55 $11.67
-------- -------- -------- ---------
-------- -------- -------- ---------
Total return (2) 10.96% 13.78% 7.63% (2.75)%
-------- -------- -------- ---------
-------- -------- -------- ---------
Net assets, end of period (in thousands) $151,441 $73,019 $39,102 $7,566
-------- -------- -------- ---------
-------- -------- -------- ---------
Ratios of expenses to average net assets:
After Bennington fee waivers 1.55% 1.52% 1.83% 1.86%*
-------- -------- -------- ---------
-------- -------- -------- ---------
Before Bennington fee waivers 1.55% 1.52% 1.93% 4.06%*
-------- -------- -------- ---------
-------- -------- -------- ---------
Ratio of net investment income (loss) to average net assets
After Bennington fee waivers (0.20)% (0.26)% 0.10% 0.38%*
-------- -------- -------- ---------
-------- -------- -------- ---------
Before Bennington fee waivers (0.20)% (0.26)% - % (1.82)%*
-------- -------- -------- ---------
-------- -------- -------- ---------
Portfolio turnover rate 196.66% 157.66% 84.85% 0.82%
-------- -------- -------- ---------
-------- -------- -------- ---------
Average commission rate paid (3) $0.0098 $0.0100
-------- --------
-------- --------
</TABLE>
(1) Portfolio commenced operations on October 3, 1994
(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 respecive 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 1996.
* Annualized.
See notes to financial statements
-66-
<PAGE>
ACCESSOR FUNDS, INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
INTERMEDIATE FIXED-INCOME PORTFOLIO
---------------------------------------------------------
1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 11.90 $ 12.29 $ 11.04 $ 12.34 $ 12.00
--------- --------- --------- --------- ---------
Net investment income 0.71 0.67 0.71 0.65 0.56
Net realized and unrealized gain (loss) on investments 0.29 (0.39) 1.25 (1.28) 0.57
--------- --------- --------- --------- ---------
Total from investment operations 1.00 0.28 1.96 (0.63) 1.13
--------- --------- --------- --------- ---------
Distributions from net investment income (0.71) (0.67) (0.71) (0.65) (0.56)
Distributions from capital gains - - - (0.02) (0.23)
--------- --------- --------- --------- ---------
Total distributions (0.71) (0.67) (0.71) (0.67) (0.79)
--------- --------- --------- --------- ---------
Net Asset Value, end of period $ 12.19 $ 11.90 $ 12.29 $ 11.04 $ 12.34
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Total return (1) 8.62 % 2.56 % 18.26 % (5.24)% 9.53 %
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Net assets, end of period (in thousands) 55,197 $52,248 $ 36,878 $ 31,405 $ 26,642
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Ratios of expenses to average net assets:
After Bennington fee waivers 0.84 % 0.88 % 0.96 % 1.24 % 1.06 %
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Before Bennington fee waivers 0.84 % 0.88 % 0.96 % 1.28 % 1.35 %
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Ratio of net investment income to average net assets
After Bennington fee waivers 5.88 % 5.79 % 6.07 % 5.65 % 4.62 %
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Before Bennington fee waivers 5.88 % 5.79 % 6.07 % 5.61 % 4.33 %
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Portfolio turnover rate 84.35 % 94.69 % 187.62 % 255.11 % 265.06 %
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
</TABLE>
(1) 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.
See notes to financial statements
-67-
<PAGE>
ACCESSOR FUNDS, INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
SHORT-INTERMEDIATE FIXED-INCOME PORTFOLIO
---------------------------------------------------------
1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 12.16 $ 12.32 $ 11.62 $ 12.29 $ 12.16
--------- --------- --------- --------- ---------
Net investment income 0.64 0.59 0.60 0.50 0.46
Net realized and unrealized gain (loss) on investments 0.11 (0.16) 0.70 (0.67) 0.22
--------- --------- --------- --------- ---------
Total from investment operations 0.75 0.43 1.30 (0.17) 0.68
--------- --------- --------- --------- ---------
Distributions from net investment income (0.64) (0.59) (0.60) (0.50) (0.46)
Distributions from capital gains - - - - (0.07)
Distributions in excess of capital gains - - - - (0.02)
--------- --------- --------- --------- ---------
Total distributions (0.64) (0.59) (0.60) (0.50) (0.55)
--------- --------- --------- --------- ---------
Net Asset Value, end of period $ 12.27 $ 12.16 $ 12.32 $ 11.62 $ 12.29
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Total return (1) 6.33 % 3.63 % 11.42 % (1.42)% 5.62 %
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Net assets, end of period (in thousands) 40,942 36,701 35,272 $32,233 $32,568
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Ratios of expenses to average net assets:
After Bennington fee waivers 0.86 % 0.93 % 0.94 % 1.18 % 1.05 %
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Before Bennington fee waivers 0.86 % 0.93 % 0.94 % 1.22 % 1.12 %
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Ratio of net investment income to average net assets
After Bennington fee waivers 5.20 % 4.89 % 4.99 % 4.17 % 3.78 %
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Before Bennington fee waivers 5.20 % 4.89 % 4.99 % 4.13 % 3.71 %
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Portfolio turnover rate 53.30 % 31.12 % 41.93 % 36.54 % 88.28 %
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
</TABLE>
(1) 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.
See notes to financial statements
-68-
<PAGE>
ACCESSOR FUNDS, INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
MORTGAGE SECURITIES PORTFOLIO
---------------------------------------------------------
1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 12.23 $ 12.38 $ 11.36 $ 12.17 $ 12.02
--------- --------- --------- --------- ---------
Net investment income 0.72 0.73 0.76 0.60 0.55
Net realized and unrealized gain (loss) on investments 0.42 (0.15) 1.02 (0.80) 0.31
--------- --------- --------- --------- ---------
Total from investment operations 1.14 0.58 1.78 (0.20) 0.86
--------- --------- --------- --------- ---------
Distributions from net investment income (0.72) (0.73) (0.76) (0.60) (0.55)
Distributions from capital gains (0.05) - - (0.01) (0.16)
Distributions in excess of capital gains - - - - -
--------- --------- --------- --------- ---------
Total distributions (0.77) (0.73) (0.76) (0.61) (0.71)
--------- --------- --------- --------- ---------
Net Asset Value, end of period $ 12.60 $ 12.23 $ 12.38 $ 11.36 $ 12.17
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Total return (1) 9.53 % 4.95 % 16.03 % (1.65)% 7.26 %
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Net assets, end of period (in thousands) $109,747 $ 73,862 $ 49,830 $ 32,975 $ 29,731
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Ratios of expenses to average net assets:
After Bennington fee waivers 0.84 % 0.95 % 1.03 % 1.31 % 1.03 %
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Before Bennington fee waivers 0.84 % 0.95 % 1.03 % 1.35 % 1.18 %
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Ratio of net investment income to average net assets
After Bennington fee waivers 5.93 % 6.08 % 6.41 % 5.18 % 4.55 %
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Before Bennington fee waivers 5.93 % 6.08 % 6.41 % 5.14 % 4.40 %
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Portfolio turnover rate 211.66 % 356.23 % 422.56 % 603.51 % 399.19 %
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
</TABLE>
(1) 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.
See notes to financial statements
-69-
<PAGE>
ACCESSOR FUNDS, INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY PORTFOLIO
---------------------------------------------------------
1997 1996 1995 1994 1993
<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 0.05 0.05 0.05 0.04 0.03
--------- --------- --------- --------- ---------
Distributions from net investment income (0.05) (0.05) (0.05) (0.04) (0.03)
--------- --------- --------- --------- ---------
Net Asset Value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Total return (1) 5.07 % 4.78 % 5.33 % 3.70 % 2.81 %
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Net assets, end of period (in thousands) $ 50,910 $ 61,672 $ 41,882 $ 12,008 $ 26,693
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Ratios of expenses to average net assets:
After Bennington fee waivers 0.54 % 0.59 % 0.53 % 0.45 % 0.45 %
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Before Bennington fee waivers 0.54 % 0.59 % 0.78 % 1.27 % 0.77 %
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Ratio of net investment income to average net assets
After Bennington fee waivers 4.96 % 4.73 % 5.14 % 3.51 % 2.71 %
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Before Bennington fee waivers 4.96 % 4.73 % 4.89 % 2.69 % 2.39 %
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
</TABLE>
(1) 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 respecive payment dates of each Portfolio.
See notes to financial statements
-70-
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Shareholders and Board of Directors
Accessor Funds, Inc.
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of Accessor Funds, Inc., including the Growth
Portfolio, Value and Income Portfolio, Small to Mid Cap Portfolio, International
Equity Portfolio, Intermediate Fixed-Income Portfolio, Short-Intermediate
Fixed-Income Portfolio, Mortgage Securities Portfolio, and U.S. Government Money
Portfolio (the "Funds"), as of December 31, 1997, the related statements of
operations for the year then ended, and the statements of changes in net assets
and the financial highlights for the periods presented. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at
December 31, 1997 by correspondence with the Funds' custodians and brokers. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the Funds as of December 31, 1997, the results of their operations, the
changes in their net assets and financial highlights for the periods presented,
in conformity with the generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Dayton, Ohio
February 16, 1998
<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 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
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
This report, including the financial statements herein, is transmitted to the
shareholders of Accessor Funds, Inc. for their information. 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.
