<PAGE>
------------------------------------------------------
[LOGO] ACCESSOR FUNDS, INC.
------------------------------------------------------
SEMI-ANNUAL
REPORT
------------------------------------------------------
UNAUDITED JUNE 30, 1999
------------------------------------------------------
Growth Fund
Value Fund
Small to Mid Cap Fund
International Equity Fund
Intermediate Fixed-Income Fund
Short-Intermediate Fixed-Income Fund
Mortgage Securities Fund
U.S. Government Money Fund
------------------------------------------------------
ACCESSOR
------
------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
A LETTER FROM THE PRESIDENT
- --------------------------------------------------------------------------------
August 16, 1999
Dear Shareholder:
Accessor Funds is pleased to present its 1999 Semi-Annual Report providing
you with detailed information on all eight Accessor Mutual Funds.
You'll notice the report continues Accessor's previously communicated focus
on "... THE VALUE OF TIME-HONORED TRADITIONS COMBINED WITH LEADING-EDGE
TECHNOLOGY." What does this mean? Simply, that Accessor is committed to
providing you with investment products that are based on the most well developed
and proven theories of money management, as well as harnessing cutting-edge
technology to constantly increase your access to your Accessor investment.
While we never stop trying to evolve our Funds and our technology platform,
we're very proud of what we've created on both fronts to date. Our Funds
continue to earn favorable ratings from independent agencies such as Morningstar
and we've recently added new features to our website. We invite you to log-on to
www.accessor.com frequently. It's an easy and efficient way to keep up-to-date
on the performance of your investments and developments at Accessor.
On behalf of Accessor, thank you for your continued confidence and
investment in the Accessor Funds. We take very seriously the opportunity of
helping you meet your investment goals and will continue to do everything
possible to help turn those goals into reality.
Sincerely,
/s/ J. Anthony Whatley III
J. Anthony Whatley III
President and Chief Executive Officer
Accessor Capital Management LP
- --------------------------------------------------------------------------------
accessor 1
<PAGE>
THIS PAGE LEFT BLANK INTENTIONALLY.
- --------------------------------------------------------------------------------
accessor 2
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
GROWTH FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (92.9%)
BANKS AND SAVINGS & LOANS (2.0%)
Chase Manhattan 33,800 $ 2,927,925
Fifth Third Bancorp 17,050 1,134,891
Firstar 82,700 2,315,600
-----------
6,378,416
BEVERAGES & TOBACCO (3.7%)
Anheuser-Busch 49,400 3,504,313
Coca Cola 128,900 8,056,250
-----------
11,560,563
CHEMICALS (0.7%)
Ecolab 49,200 2,146,350
-----------
2,146,350
COMMERCIAL SERVICES (0.6%)
Interpublic Group 13,100 1,134,787
Omnicom Group 7,800 624,000
-----------
1,758,787
COMMUNICATION SERVICES (8.1%)
Ameritech 61,200 4,498,200
AT&T 31,299 1,746,875
MCI Worldcom* 150,625 12,991,406
SBC Communications 103,500 6,003,000
-----------
25,239,481
COMPUTER HARDWARE (11.5%)
Cisco Systems 251,400 16,215,300
EMC 83,000 4,565,000
International Business Machines 116,000 14,993,000
-----------
35,773,300
COMPUTER SERVICES (0.9%)
Paychex 91,200 2,907,000
-----------
2,907,000
COMPUTER SOFTWARE (11.7%)
America Online 109,000 12,044,500
Microsoft 270,900 24,431,794
-----------
36,476,294
CONSUMER SERVICES (4.9%)
Cardinal Health 30,900 1,981,462
Comcast Class A 121,500 4,670,156
CVS 22,000 1,124,750
Kroger 61,600 1,720,950
Safeway* 56,700 2,806,650
Sysco 22,700 676,744
Time Warner 30,900 2,271,150
-----------
15,251,862
ELECTRICAL EQUIPMENT (6.5%)
General Electric 181,350 20,492,550
-----------
20,492,550
ELECTRONICS (4.2%)
Intel 220,900 13,143,550
-----------
13,143,550
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 3
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
GROWTH FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
FOODS & HOUSEWARES (1.9%)
Clorox 6,200 $ 662,238
General Mills 7,200 578,700
Gillette 41,100 1,685,100
Quaker Oats 12,000 796,500
Unilever NV NY Shares* 26,964 1,880,739
Wm. Wrigley Jr. Company 5,200 468,000
-----------
6,071,277
INSURANCE (4.4%)
American International Group 60,250 7,053,015
Berkshire Hathaway Class B* 3,037 6,830,213
-----------
13,883,228
MANUFACTURING (1.8%)
Danaher 32,000 1,860,000
Pitney-Bowes 58,600 3,765,050
-----------
5,625,050
OTHER FINANCIALS (3.6%)
American Express 1,900 247,238
Capital One Financial 30,075 1,674,802
Federal Home Loan Mortgage Corporation 54,300 3,149,400
MBNA 41,875 1,282,421
Providian 24,400 2,281,400
Charles Schwab 22,300 2,450,213
-----------
11,085,474
OTHER HEALTH CARE (7.4%)
Abbott Labs 107,550 4,893,525
Bristol-Myers Squibb 155,400 10,945,987
Guidant 31,500 1,620,281
Johnson & Johnson 57,700 5,654,600
-----------
23,114,393
PHARMACEUTICALS (7.1%)
Eli Lilly 21,600 1,547,100
Merck 175,700 13,001,800
Schering-Plough 142,100 7,531,300
-----------
22,080,200
RETAIL (11.1%)
Gap 68,725 3,462,022
Home Depot 136,800 8,815,050
Kohls* 16,200 1,250,437
Costco Companies* 23,900 1,913,494
Staples 86,200 2,666,813
TJX Companies 27,400 912,763
Wal-Mart Stores 322,100 15,541,325
-----------
34,561,904
TRANSPORTATION (0.8%)
Southwest Airlines 75,550 2,351,494
-----------
2,351,494
TOTAL COMMON STOCK (IDENTIFIED
COST $228,173,129) 289,901,173
-----------
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 4
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
GROWTH FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT COMPANIES (4.5%)
Standard & Poors Depository Receipts 101,700 $ 13,928,133
------------
TOTAL INVESTMENT COMPANIES
(IDENTIFIED COST $13,461,555) 13,928,133
------------
<CAPTION>
INTEREST MATURITY PRINCIPAL
SHORT-TERM INVESTMENTS (2.9%) RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
Fifth Third Bank
Repurchase Agreement 4.55% 07/01/1999 $8,993,806 8,993,806
Dated 6/30/99 (Collateralized
by 9,104,000 U.S.
Treasury Notes, 7.50%,
10-31-99, market value
$9,173,700)
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED Cost $8,993,806) 8,993,806
------------
TOTAL INVESTMENTS (100.3%)
(IDENTIFIED COST $250,628,490) 312,823,112
OTHER ASSETS LESS LIABILITIES (-0.3%) (886,894)
------------
NET ASSETS (100.0%) $311,936,218
------------
------------
</TABLE>
- --------------------------------------------------------------------------------
*Non-income producing security
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 5
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
VALUE FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (97.4%)
AEROSPACE & DEFENSE (1.3%)
B.F. Goodrich 38,400 $ 1,632,000
General Dynamics 9,500 650,750
-----------
2,282,750
AGRICULTURAL, PAPER & FOREST
Products (1.1%)
Louisiana Pacific 76,900 1,826,375
-----------
1,826,375
AUTOMOBILES (4.0%)
Delphi Automotive Systems 23,623 438,502
Ford Motor Company 66,900 3,775,668
General Motors 33,800 2,230,800
ITT Industries 10,100 385,063
-----------
6,830,033
BANKS AND SAVINGS & LOANS (11.8%)
Bank Of America 76,300 5,593,744
Bank One 41,900 2,495,669
Chase Manhattan 44,600 3,863,475
First Union 48,900 2,298,300
Fleet Financial Group 55,300 2,453,937
J.P. Morgan & Company 2,700 379,350
PNC Bank 32,500 1,872,813
SouthTrust 30,900 1,185,787
-----------
20,143,075
CHEMICALS (2.6%)
E.I. du Pont de Nemours 11,300 771,931
FMC* 26,100 1,782,956
Grace (WR) & Company* 92,700 1,703,363
Union Carbide 4,600 224,250
-----------
4,482,500
COMMUNICATION SERVICES (11.0%)
AT&T 68,800 3,839,900
Alltel 4,200 300,300
Bell Atlantic 74,400 4,863,900
BellSouth 94,600 4,434,375
CenturyTel 44,700 1,776,825
GTE 8,100 613,575
Sprint-Fon Group 56,300 2,973,344
-----------
18,802,219
COMPUTER HARDWARE (4.1%)
Apple Computer* 39,100 1,810,819
Hewlett Packard 36,400 3,658,200
Seagate Technology* 57,600 1,476,000
-----------
6,945,019
COMPUTER SERVICES (1.1%)
Shared Medical Systems 28,000 1,827,000
-----------
1,827,000
CONSUMER SERVICES (4.7%)
CBS* 55,800 2,423,813
King World Productions* 23,600 821,575
SUPERVALU 19,900 511,181
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 6
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
VALUE FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER SERVICES - CONTINUED
The Walt Disney Company 10,200 $ 314,288
Time Warner 31,300 2,300,550
Viacom Class B 37,000 1,628,000
-----------
7,999,407
ELECTRONICS (4.0%)
Applied Materials* 33,100 2,445,263
Texas Instrument 23,900 3,465,500
Xerox 16,800 992,250
-----------
6,903,013
FOODS & HOUSEWARES (1.1%)
McDonalds 12,800 528,800
Tupperware 54,700 1,394,850
-----------
1,923,650
HOMEBUILDING AND FURNISHING (1.0%)
Centex 46,800 1,757,925
-----------
1,757,925
INSURANCE (5.6%)
Allstate 60,700 2,177,613
Conseco 62,300 1,896,256
Jefferson Pilot Company 15,100 999,431
Lincoln National 37,600 1,966,950
Loews 7,400 585,525
MGIC Investment 40,100 1,949,863
-----------
9,575,638
LEISURE (5.5%)
Carnival Cruise Line 51,400 2,492,900
Gannett 27,900 1,991,362
Mattel 82,700 2,186,381
Meredith 28,900 1,000,663
Tribune 18,900 1,646,663
-----------
9,317,969
MANUFACTURING (3.8%)
Crane Company 56,500 1,776,219
Eaton 19,900 1,830,800
Ingersoll-Rand 13,400 865,975
Johnson Controls 28,000 1,940,750
-----------
6,413,744
METALS (1.9%)
Barrick Gold 104,000 2,015,000
Worthington Industries 77,300 1,270,619
-----------
3,285,619
ENERGY (9.9%)
Apache 44,800 1,747,200
Ashland 25,100 1,007,137
Burlington Resources 43,500 1,881,375
Chevron 4,300 409,306
Exxon 53,700 4,141,613
Mobil 5,900 584,100
Phillips Petroleum 19,500 981,094
Royal Dutch Petroleum 81,000 4,880,250
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 7
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
VALUE FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
ENERGY - CONTINUED
Texaco 10,500 $ 656,250
USX-Marathon Group 18,900 615,431
-----------
16,903,756
OTHER FINANCIALS (8.5%)
Bear Stearns 19,900 930,325
Citigroup 138,800 6,593,000
Federal National Mortgage Association 19,200 1,312,800
Household International 28,800 1,364,400
Lehman Brothers Holdings 22,100 1,375,725
Morgan Stanley Dean Witter 28,100 2,880,250
-----------
14,456,500
OTHER HEALTH CARE (1.8%)
Columbia/HCA Healthcare 14,300 326,219
Healthsouth* 127,900 1,910,506
Tenet Healthcare* 43,500 807,468
-----------
3,044,193
RETAIL (2.7%)
Dillard's 51,200 1,798,400
Federated Department Stores* 19,100 1,011,106
Lowe's 8,700 493,181
Sears, Roebuck & Company 27,200 1,212,100
-----------
4,514,787
TRANSPORTATION (2.5%)
Burlington Northern Santa Fe 22,500 697,500
Delta Air Lines 32,000 1,844,000
Union Pacific 30,200 1,761,037
-----------
4,302,537
UTILITIES (7.4%)
DTE Energy Company 29,000 1,160,000
GPU 41,700 1,759,218
Oneok 28,700 911,225
Peco Energy 39,300 1,645,688
Public Service Enterprise Group 29,400 1,201,725
Reliant Energy 61,600 1,701,700
Sempra Energy 78,900 1,785,112
Southern Company 19,800 524,700
The Coastal Corporation 46,400 1,856,000
-----------
12,545,368
TOTAL COMMON STOCK (IDENTIFIED COST $145,048,944) 166,083,077
-----------
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 8
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
VALUE FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
INTEREST MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SHORT-TERM INVESTMENTS (3.1%)
U.S. Treasury Bills(2) 4.49%(1) 09/23/1999 $ 610,000 $ 603,666
Fifth Third Repurchase
Agreement dated 6/30/99 4.55% 07/01/1999 4,727,470 4,727,470
(Collateralized by 4,747,000 FHLMC ------------
#G10657, 7.50%,
02-01-12, market value $4,822,657)
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $5,331,136) 5,331,136
------------
TOTAL INVESTMENTS (100.5%) (Identified
Cost $150,380,080) 171,414,213
OTHER ASSETS LESS LIABILITIES (-0.5%) (783,910)
------------
NET ASSETS (100.0%) $170,630,303
------------
------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
OUTSTANDING FUTURES CONTRACT
UNITS PER CURRENT UNREALIZED
TYPE EXPIRATION CONTRACTS CONTRACT VALUE APPRECIATION
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
S&P 500 Futures 09/17/99 14 250 $4,835,950 $ 186,687
- --------------------------------------------------------------------------------------------------------
</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 open futures contracts at June 30, 1999 as collateral.
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 9
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SMALL TO MID CAP FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (97.0%)
AEROSPACE & DEFENSE (0.6%)
BE Aerospace* 90,900 $ 1,698,694
Cordant Technologies 18,600 840,488
-----------
2,539,182
AGRICULTURAL, PAPER &
FOREST PRODUCTS (0.3%)
Chesapeake 8,000 299,500
Georgia Pacific 31,800 802,950
Universal 4,200 119,437
-----------
1,221,887
AUTOMOBILES (1.2%)
Arvin Industries 76,000 2,878,500
Borg-Warner Automotive 16,000 880,000
Tower Automotive* 29,400 747,862
-----------
4,506,362
BANKS AND SAVINGS & LOANS (6.6%)
Astoria Financial 32,500 1,427,969
City National 118,600 4,440,087
Commerce Bancorp New Jersey 15,881 678,923
Commerce Bancshares 21,840 879,060
Cullen Frost Bankers 7,600 209,475
Dime Bancorp 158,500 3,189,813
FirstFed Financial* 72,200 1,389,850
Hudson United Bancorp 54,400 1,666,000
M & T Bank 12,300 6,765,000
North Fork Bancorp 75,552 1,610,202
PFF Bancorp* 17,900 335,625
Popular 31,600 957,875
Roslyn Bancorp 22,960 394,625
UnionBanCal 68,200 2,463,725
-----------
26,408,229
BEVERAGES & TOBACCO (0.1%)
Canandaigua Brands* 4,900 256,944
-----------
256,944
CHEMICALS (1.2%)
H.B. Fuller 24,200 1,654,675
Lone Star Industries 47,300 1,776,706
Southdown 23,200 1,490,600
-----------
4,921,981
COMMERCIAL SERVICES (4.8%)
ADVO* 36,700 761,525
CMGI 12,700 1,448,594
Dollar Thrifty Automobile* 12,400 288,300
EBay 35,500 5,360,500
Hertz 85,600 5,307,200
Metzler Group* 68,400 1,889,550
Ogden 37,400 1,007,462
TMP Worldwide* 50,300 3,194,050
-----------
19,257,181
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 10
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SMALL TO MID CAP FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMUNICATION SERVICES (0.3%)
Associated Group* 3,200 $ 208,400
Skytel Communications* 37,100 776,781
United States Cellular* 5,500 294,250
-----------
1,279,431
COMPUTER HARDWARE (8.7%)
Adaptec* 25,600 904,000
CommScope* 193,500 5,950,125
Comverse Technololgy 105,400 7,957,700
General Cable 28,300 452,800
Lexmark International Group Class A 129,000 8,522,063
QUALCOMM 44,100 6,328,350
Qwest Communications International 104,600 3,458,337
Superior Telecom 18,187 454,675
Xircom* 26,000 781,625
-----------
34,809,675
COMPUTER SERVICES (4.7%)
CIBER* 58,400 1,116,900
Galileo International 63,700 3,403,969
MedQuist* 72,200 3,158,750
National Computer Systems 15,600 526,500
New Era Of Networks* 12,300 540,431
Sungard Data Systems* 112,200 3,870,900
The SABRE Group Holdings* 21,600 1,485,000
Yahoo! 26,100 4,495,725
-----------
18,598,175
COMPUTER SOFTWARE (5.6%)
American Management Systems* 97,100 3,113,269
CSG Systems International 60,000 1,571,250
Citrix Systems 39,600 2,237,400
Concord Communications* 31,000 1,395,000
Genesys Telecommunication Laboratories* 17,000 425,000
Great Plains Software* 8,100 382,219
Mercury Interactive 54,600 1,931,475
Progress Software* 24,900 703,425
QRS Corporation* 1,000 78,000
Rational Software* 44,000 1,449,250
Sterling Software* 122,600 3,271,887
-----------
Veritas Software* 62,500 5,933,593
22,491,768
CONSUMER SERVICES (5.7%)
At Home 34,400 1,855,450
Bergen Brunswig 19,600 338,100
Bindley Western Industry 98,488 2,271,380
Chris Craft Industries 37,400 1,762,475
Hollywood Entertainment* 33,000 645,562
Pixar* 28,400 1,224,750
SFX Entertainment Class A* 10,500 698,906
United International Holdings* 11,300 764,163
Univision Communications* 88,600 5,847,600
Valassis Communications 137,150 5,023,119
Westwood One* 14,900 531,743
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 11
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SMALL TO MID CAP FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER SERVICES - CONTINUED
World Color Press* 70,100 $ 1,927,750
-----------
22,890,998
ELECTRICAL EQUIPMENT (0.1%)
C&D Technologies 12,700 388,938
-----------
388,938
ELECTRONICS (4.7%)
JDS Uniphase* 40,400 6,706,400
RF Micro Devices 134,800 10,059,450
Semtech* 28,200 1,469,925
Teradyne* 4,200 301,350
Unitrode* 15,800 453,263
-----------
18,990,388
FOODS & HOUSEWARES (3.7%)
Brinker International* 81,500 2,215,781
Dial Corporation* 32,700 1,216,031
Earthgrains Company 20,200 521,413
Estee Lauder 4,400 220,550
Foodmaker* 68,000 1,929,500
Hormel Foods 60,300 2,427,075
IBP Inc. 187,800 4,460,250
International Multifoods 26,100 588,881
Keebler Foods* 30,500 926,438
Smithfield Foods* 15,300 511,594
-----------
15,017,513
HOMEBUILDING AND FURNISHING (3.1%)
D.R. Horton 363,900 6,049,838
La-Z-Boy 15,000 345,000
Lafarge 21,500 761,906
NVR* 26,400 1,377,750
USG 66,800 3,740,800
-----------
12,275,294
INSURANCE (6.4%)
Arthur J Gallagher & Co. 15,200 752,400
Berkshire Hathaway Class A* 194 13,366,600
E.W. Blanch Holdings 29,100 1,984,256
Equitable Companies 35,600 2,385,200
Fidelity National Finance 87,020 1,827,420
First American Financial 61,600 1,101,100
Hartford Life Class A 38,300 2,015,538
Nationwide Financial Services 8,700 393,675
Reinsurance Group of America 11,800 415,950
Stewart Information Services 71,600 1,512,550
-----------
25,754,689
LEISURE (2.1%)
A.H. Belo 26,500 521,719
E.W. Scripps Company 4,700 223,543
Fossil* 78,250 3,785,344
MGM Grand* 7,700 377,300
Mandalay Resort Group* 137,300 2,900,463
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 12
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SMALL TO MID CAP FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
LEISURE - CONTINUED
Station Casinos* 26,100 $ 531,788
The McClatchy Company 2,100 69,562
-----------
8,409,719
MANUFACTURING (7.6%)
Albany International Class A* 8,800 182,600
American Standard* 12,200 585,600
Carlisle Companies 21,600 1,039,500
Cognex* 37,400 1,180,438
CTS Corporation 6,100 427,000
Dycom Industries 143,700 8,047,200
Jabil Circuit 142,000 6,407,750
Level 3 Communications* 47,100 2,828,943
Ryerson Tull 13,500 304,594
SPS Technologies* 12,600 472,500
Tecumseh Products 28,700 1,738,143
Terex* 58,600 1,783,637
The Manitowoc Company 69,300 2,884,613
York International 61,900 2,650,094
-----------
30,532,612
OIL & GAS (2.4%)
Atwood Oceanics* 11,000 343,750
Barrett Resources* 14,300 548,763
Houston Exploration* 66,600 1,261,237
Louis Dreyfus Natural Gas* 17,600 379,500
Murphy Oil 15,600 761,475
Stone Energy* 18,400 779,700
Tidewater 124,600 3,800,300
Vastar Resources 34,200 1,793,363
-----------
9,668,088
OTHER FINANCIALS (6.8%)
A.G. Edwards 57,700 1,860,825
Ambac Financial Group 62,300 3,558,888
E*TRADE Group 35,300 1,409,794
Financial Security Assurance Holding 57,800 3,005,600
Goldman Sachs Group* 55,600 4,017,100
Hambrecht & Quist Group* 102,400 3,801,600
Legg Mason 17,500 673,750
Lennar 256,600 6,158,400
Metris 11,400 464,550
Midas Group 18,400 522,100
U.S. Trust 19,900 1,840,750
-----------
27,313,357
OTHER HEALTH CARE (3.9%)
Apira Healthcare Group* 49,600 843,200
PacifiCare Health Systems* 64,600 4,647,162
Priority Healthcare 35,850 1,236,825
The Cooper Companies 15,200 379,050
Trigon Healthcare* 31,900 1,160,362
VISX 91,800 7,269,413
15,536,012
-----------
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 13
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SMALL TO MID CAP FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
PHARMACEUTICALS (2.9%)
Alpharma Class A 44,700 $ 1,589,644
Medicis Pharmiceutical 66,300 1,682,362
MedImmune 125,500 8,502,625
-----------
11,774,631
RETAIL (5.9%)
Abercrombie & Fitch Class A 63,800 3,062,400
Amazon.Com 20,900 2,615,113
American Eagle Outfitters 19,400 882,700
AnnTaylor Stores* 102,000 4,590,000
Family Dollar Stores 51,200 1,228,800
Ross Stores 63,700 3,208,887
Tech Data* 30,400 1,162,800
Tiffany & Co. 34,500 3,329,250
Zale* 83,900 3,356,000
-----------
23,435,950
TEXTILES AND FOOTWEAR (1.4%)
Jones Apparel Group* 48,700 1,671,019
Mohawk Industries* 66,100 2,007,787
Quiksilver 29,100 758,419
Shaw Industries* 79,300 1,308,450
-----------
5,745,675
TRANSPORTATION (1.1%)
Alaska Airgroup* 600 25,050
America West Holdings* 38,300 722,913
Avondale Industries* 400 15,600
CNF Transportation 44,600 1,711,525
UAL* 13,700 890,500
USFreightways 23,700 1,097,606
-----------
4,463,194
UTILITIES (5.0%)
Allegheny Energy 33,500 1,074,095
American Water Works 19,900 611,925
El Paso Energy 34,200 1,203,412
Energy East 170,900 4,443,400
Equitable Resources 21,400 807,850
Florida Progress 19,100 789,069
Keyspan Natural Gas* 38,400 1,012,800
Minnesota Power & Light 62,900 1,250,137
National Fuel Gas 34,900 1,692,650
OGE Energy 60,300 1,432,125
Philadelphia Suburban 23,800 548,888
Public Service Company of New Mexico 44,700 888,412
Utilicorp United 137,250 3,336,890
Western Resources 33,600 894,600
-----------
19,986,253
WASTE MANAGEMENT (0.1%)
Casella Waste Systems* 18,300 475,800
-----------
475,800
-----------
TOTAL COMMON STOCK (IDENTIFIED COST $341,929,550) 388,949,926
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 14
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SMALL TO MID CAP FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
INTEREST MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SHORT-TERM INVESTMENTS (3.2%)
FIFTH THIRD REPURCHASE AGREEMENT DATED 4.55% 7/01/1999 $ 12,825,190 $ 12,825,190
6/30/99 (collateralized by 12,983,000 U.S. Treasury -------------
Notes 7.50%, 10-31-99, market value $13,082,397)
TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $12,825,190) 12,825,190
-------------
TOTAL INVESTMENTS (100.2%) (IDENTIFIED COST $354,754,740) 401,775,116
OTHER ASSETS LESS LIABILITIES (-0.2%) (684,430)
-------------
NET ASSETS (100.0%) $ 401,090,686
-------------
-------------
</TABLE>
- --------------------------------------------------------------------------------
*Non-income producing security
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 15
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (99.9%)
AUSTRALIA (2.7%)
Broken Hill Proprietary Company 396,900 $ 4,597,392
Suncorp-Metway Limited 138,400 824,463
--------------
5,421,855
BELGIUM (0.7%)
Fortis (B) 44,700 1,403,718
--------------
1,403,718
BRAZIL (3.6%)
Aracruz Celulose SA 51,400 1,130,800
Centrais Eletricas Brasileiras SA 78,350,000 1,577,651
Eletropaulo Metropolitana - Eletricidade de Sao Paulo SA 36,800,000 1,629,376
Tele Norte Leste Participacoes SA 155,600 2,888,325
--------------
7,226,152
CHILE (0.3%)
Cia. de Telecomunicaciones de Chile SA ADR 21,200 524,700
--------------
524,700
FINLAND (4.0%)
Nokia ADR 67,400 6,171,312
Sonera Group Oyj 20,800 454,762
Stora Enso Oyj Class R 126,000 1,351,416
--------------
7,977,490
FRANCE (11.0%)
Banque Nationale de Paris 8,500 708,297
Cap Gemini SA 9,200 1,445,965
Etablissements Economiques du Casino Guichard-Perrachon SA 4,400 385,706
Castorama Dubois 8,000 1,897,592
Elf Aquitaine SA 15,300 2,245,336
Lafarge SA 21,500 2,044,346
Sidel SA 40,900 4,973,042
Societe Television Francaise 1 17,400 4,055,484
Total Fina SA 33,900 4,373,630
--------------
22,129,398
GERMANY (7.7%)
DaimlerChrysler AG 40,335 3,523,307
Deutsche Telekom AG 68,586 2,882,359
Dresdner Bank AG 35,300 1,372,464
Mannesmann AG 39,700 5,936,678
Veba AG 31,000 1,828,701
--------------
15,543,509
GREAT BRITAIN (14.9%)
Arm Holdings PLC 100,600 1,170,289
Barclays 86,500 2,517,020
Barratt Developements PLC 396,200 2,235,818
British American Tobacco PLC 186,800 1,756,411
BP Amoco PLC 285,200 5,111,506
British Telecommunications PLC 205,000 3,434,994
Dixons Group PLC 23,200 434,454
General Electric PLC 158,200 1,613,428
GKN PLC 90,000 1,536,420
Hanson PLC 127,600 1,133,400
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 16
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------
<S> <C> <C>
GREAT BRITAIN - CONTINUED
Lloyds TSB Group PLC 1 $ 14
Pearson PLC 72,000 1,462,933
SmithKline Beecham PLC 264,300 3,435,000
Standard Chartered PLC 103,900 1,696,735
Vodafone Airtouch PLC 122,921 2,422,005
--------------
29,960,427
HONG KONG (2.5%)
HSBC Holdings 101,900 3,716,725
Sun Hung Kai Properties 132,000 1,203,650
--------------
4,920,375
IRELAND (1.8%)
CRH PLC 87,700 1,555,654
Global TeleSystems Group 24,800 2,008,800
--------------
3,564,454
ITALY (2.7%)
Alleanza Assicurazioni 136,600 1,570,763
Mediaset SpA 163,000 1,449,038
Seat SpA 1,777,200 2,428,495
--------------
5,448,296
JAPAN (25.1%)
Advantest 5,800 637,310
Bank Of Tokyo - Mitsubishi 231,000 3,288,277
Fuji Heavy Industries 236,000 1,821,084
Fuji Soft ABC 60 3,569
Fujitisu 198,000 3,983,229
Honda Motor 44,000 1,864,838
Hoya 22,000 1,241,408
Kao 204,000 5,730,337
Matsushita communication industrial 18,000 1,286,352
Mitshui Fudosan 226,000 1,829,808
Nippon Electric Glass 32,000 401,851
Nippon Steel 1,448,000 3,361,599
Olympus Optical 305,000 4,507,973
Rengo 764,000 3,938,665
Ryohin Keikaku 17,500 4,402,470
Shin-Etsu Chemical Company 119,000 3,981,742
Shohkoh Fund & Co. 6,230 4,467,647
Softbank 8,000 1,619,960
Sony 7,900 851,743
Tokyo Electronics 19,000 1,288,747
--------------
50,508,609
MEXICO (2.0%)
Fomento Economico Mexicano SA 7,200 287,100
Grupo Televisa SA ADR 15,700 703,556
Kimberly-Clark de Mexico SA 235,000 958,854
Telefonos de Mexico SA ADR 25,200 2,036,475
--------------
3,985,985
NETHERLANDS (6.9%)
ASM Lithography Holding ADR 18,100 1,074,688
Equant NV 21,500 2,023,688
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 17
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------------------
<S> <C> <C>
NETHERLANDS - CONTINUED
ING Groep NV 51,800 2,804,620
Koninklijke Ahold NV 45,100 1,553,488
Oce NV 252 6,419
Royal Dutch Petroleum 52,000 3,133,000
STMicroelectronics NV 31,200 2,164,500
Wolters Kluwer NV 24,600 979,281
--------------
13,739,684
SINGAPORE (2.3%)
Allgreen Properties Limited 463,000 500,394
Asia Pulp & Paper ADR 106,000 1,020,250
City Developments Limited 142,000 909,134
Oversea Chinese Banking 136,000 1,134,332
Singapore Technology Engineering Limited 919,000 1,041,803
--------------
4,605,913
SOUTH AFRICA (1.8%)
Anglo American PLC 78,350 3,661,397
--------------
3,661,397
SOUTH KOREA (2.4%)
Pohang Iron & Steel ADR 43,700 1,469,413
Kookmin Bank ADR 37,600 763,393
Korea Electric Power ADR 51,300 1,051,650
Korea Telecom ADR 27,900 1,116,000
Shinhan Bank GDR 21,300 474,990
--------------
4,875,446
SPAIN (1.0%)
Banco Santander Central Hispano SA 191,000 1,989,481
--------------
1,989,481
SWEDEN (1.1%)
Svenska Cellulosa AB 86,900 2,248,647
--------------
2,248,647
SWITZERLAND (4.6%)
Julius Baer Holding Limited 590 1,681,268
Swisscom AG 6,100 2,295,446
UBS AG 17,900 5,342,596
--------------
9,319,310
TAIWAN (0.7%)
Taiwan Semiconductor ADR 40,400 1,373,600
--------------
1,373,600
VENEZUELA (0.1%)
C.A. La Electricidad de Caracas ADR 22,000 430,586
--------------
430,586
TOTAL COMMON STOCK (IDENTIFIED COST $173,325,179) 200,859,032
--------------
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 18
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
INTEREST MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SHORT-TERM INVESTMENTS (6.8%)
Associates Corporation Commercial Paper 5.65%(1) 7/01/1999 $ 9,813,000 $ 9,813,000
Abbott Labs Commercial Paper 5.65%(1) 7/01/1999 3,490,000 3,490,000
Fifth Third Repurchase Agreement dated 4.55% 7/01/1999 400,883 400,833
------------
6/30/99 (collateralized by 406,000 U.S. Treasury Notes,
7.50%, 10-31-99, market value $409,108)
TOTAL SHORT-TERM INVESTMENTS(IDENTIFIED COST $13,703,883) 13,703,883
------------
TOTAL INVESTMENTS (106.7%)(IDENTIFIED COST $187,029,062) 214,562,915
OTHER ASSETS LESS LIABILITIES (-6.7%) (13,472,404)
------------
NET ASSETS (100.0%) $201,090,511
------------
------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
FORWARD CURRENCY CONTRACTS
UNREALIZED
EXCHANGE CONTRACT APPRECIATION/ DELIVERY
CURRENCY RATE(2) VALUE (DEPRECIATION) DATE
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Japanese Yen (Sell) 120.510 $ 1,933,475 $ 8,466 7/02/99
LIABILITIES
Hong Kong Dollar (Buy) 7.748 1,697,671 (2,385) 7/02/99
Japanese Yen (Buy) 120.590 1,947,562 (7,241) 7/01/99
Japanese Yen (Buy) 120.020 1,487,263 (12,533) 7/02/99
Japanese Yen (Buy) 120.020 301,059 (2,537) 7/02/99
Japanese Yen (Buy) 120.020 746,533 (6,291) 7/02/99
-------------
$ (22,521)
-------------
-------------
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Non-income producing security
(1) Yield at time of purchase
(2) Contract rate.
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION
- --------------------------------------------------------------------------------
accessor 19
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INTERMEDIATE FIXED-INCOME FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
INTEREST MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (0.7%)
Collateralized Mortgage Securities
Corporation I3 9.450% 02/01/2017 $ 321,737 $ 341,378
Merrill Lynch Mortgage Investments 1992-D 8.150% 07/15/2017 100,000 101,502
-----------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Identified Cost $443,714) 442,880
-----------
ASSET-BACKED SECURITIES (8.6%)
Bridgestone/Firestone Master Trust 1996-1a 6.170% 07/01/2003 1,000,000 994,960
Captiva CBO 1997-1AA(1) 6.86O% 11/30/2009 1,200,000 1,185,216
Carco Auto loan master trust 1997-1a 6.689% 08/15/2004 1,000,000 1,001,790
CPS auto trust 1997-4A1 6.070% 03/15/2003 99,045 99,119
Ford Credit Auto Loan Master Trust 1995-1 6.500% 08/15/2002 500,000 504,025
ONYX acceptance auto trust 1996-2A 6.400% 10/15/2001 313,400 314,566
World Financial Network Credit Card
Master Trust 1996-A 6.700% 02/15/2004 1,000,000 1,011,640
-----------
TOTAL ASSET-BACKED SECURITIES (Identified Cost $5,101,891) 5,111,316
-----------
CORPORATE BONDS (66.9%)
ENERGY (3.2%)
Enron Oil & Gas 6.000% 12/15/2008 1,000,000 915,926
Phillips Petroleum 7.920% 04/15/2023 1,000,000 994,513
-----------
1,910,439
FINANCE - BANKS (8.6%)
ABN Amro Bank 7.300% 12/01/2026 250,000 236,205
BankAmerica 7.125% 03/01/2009 500,000 499,816
Bank One 7.625% 10/15/2026 500,000 498,037
Citicorp 7.000% 01/02/2004 500,000 493,802
First National boston Bank 7.375% 09/15/2006 1,000,000 993,413
J.P. Morgan & Company 7.625% 09/15/2004 500,000 519,256
Midland Bank PLC 5.311% 09/29/2049 200,000 159,900
Nationsbank 8.570% 11/15/2024 1,000,000 1,124,794
Standard Federal Bancorp 7.750% 07/17/2006 600,000 609,884
-----------
5,135,107
FINANCE - BROKER RELATED (4.1%)
Bear Stearns 6.500% 07/05/2000 500,000 501,349
Bear Stearns 6.125% 02/01/2003 1,250,000 1,221,121
Morgan Stanley Group 7.000% 10/01/2013 738,000 730,002
-----------
2,452,472
FINANCE - OTHER (12.1%)
American Express 8.625% 05/15/2022 500,000 514,889
Chrysler Financial 5.875% 02/07/2001 315,000 313,763
General Electric Capital 8.650% 05/15/2009 375,000 426,448
General Electric Capital 7.260% 04/29/2002 500,000 512,612
General Motors Acceptance Corporation 6.625% 10/15/2005 1,000,000 987,827
MBIA 8.200% 10/01/2022 500,000 506,432
MIC Financing Trust I 8.375% 02/01/2027 1,000,000 943,697
Nynex Capital Funding 8.750% 12/01/2004 1,000,000 1,078,799
Phoenix Home Life Mutual 6.950% 12/01/2006 1,000,000 977,461
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 20
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INTERMEDIATE FIXED-INCOME FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FINANCE - OTHER - CONTINUED
Sears Roebuck Acceptance Corporation 6.000% 03/20/2003 $ 600,000 $ 590,622
Western National 7.125% 02/15/2004 330,000 334,079
-----------
INDUSTRIALS (21.3%) 7,186,629
Amgen 6.500% 12/01/2007 400,000 388,154
Anheuser-Busch 6.750% 06/01/2005 500,000 496,206
Anheuser-Busch 5.750% 01/15/2011 500,000 453,833
Archer Daniels Midland 6.250% 05/15/2003 1,000,000 993,164
Arrow Electronics 7.000% 01/15/2007 500,000 490,224
Avnet 6.450% 08/15/2003 1,000,000 997,494
Coca Cola 6.950% 11/15/2026 500,000 474,534
Dayton Hudson 8.600% 01/15/2012 500,000 554,496
Eli Lilly 7.125% 06/01/2025 592,000 590,901
Fortune Brands 6.250% 04/01/2008 455,000 443,677
General Motors 8.100% 06/15/2024 1,000,000 1,000,811
IBM 8.375% 11/01/2019 1,000,000 1,130,242
JC Penney 8.250% 08/15/2022 1,000,000 1,049,690
JC Penney 7.400% 04/01/2037 500,000 503,528
John Deere & Company 8.950% 06/15/2019 500,000 576,592
Kaiser Foundation Hospital 8.750% 08/11/2003 1,200,000 1,283,815
McDonald's 6.625% 09/01/2005 500,000 501,902
VF Corporation 6.750% 06/01/2005 750,000 744,273
-----------
12,673,536
TRANSPORTATION (2.4%)
Continental Airlines 6.320% 11/01/2008 1,000,000 956,460
Union Pacific Railroad 7.060% 05/15/2003 500,000 501,235
-----------
1,457,695
UTILITIES (15.2%)
BellSouth Telecommunications 8.250% 07/01/2032 1,019,000 1,034,818
BellSouth Telecommunications 7.875% 08/01/2032 500,000 495,710
BellSouth Telecommunications 6.300% 12/15/2015 450,670 441,167
Carolina Telphone & Telecommunication 6.750% 08/15/2013 375,000 363,422
Central Power & Light 6.625% 07/01/2005 1,000,000 990,574
Chesapeake & Potomac Telephone Company 7.625% 12/01/2012 865,000 912,824
Entergy Mississippi 6.450% 04/01/2008 1,000,000 948,660
GTE North 6.375% 02/15/2010 500,000 483,114
Idaho Power 8.750% 03/15/2027 400,000 427,380
National Rural Utilities 6.750% 09/01/2001 1,000,000 1,007,165
Pacific Gas & Electric 8.250% 11/01/2022 500,000 508,545
SBC Communications 7.500% 02/01/2033 405,000 377,370
Wisconsin Electric Power 7.250% 08/01/2004 1,000,000 1,032,630
-----------
9,023,379
TOTAL CORPORATE BONDS (IDENTIFIED COST $41,713,055) 39,839,257
-----------
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 21
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INTERMEDIATE FIXED-INCOME FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES (20.4%)
U.S. TREASURY BONDS (4.8%)
United States Treasury Bond 8.750% 08/15/2020 $ 500,000 $ 641,407
United States Treasury Bond 8.125% 08/15/2021 1,840,000 2,238,476
-----------
2,879,883
U.S. TREASURY NOTES (2.4%)
United States Treasury Note 6.250% 02/15/2003 200,000 203,375
United States Treasury Note 5.625% 02/15/2006 500,000 492,344
United States Treasury Note 6.125% 08/15/2007 250,000 252,735
United States Treasury Note 5.500% 02/15/2008 500,000 486,250
-----------
1,434,704
FEDERAL FARM CREDIT BANK (0.2%)
FFCB 6.190% 01/14/2008 100,000 95,488
-----------
95,488
FEDERAL HOME LOAN BANK (5.5%)
FHLB 5.750% 03/03/2008 245,000 232,984
FHLB 6.095% 03/16/2005 1,000,000 978,743
FHLB 6.185% 05/06/2008 1,000,000 979,456
FHLB 6.010% 04/22/2008 100,000 96,783
FHLB 5.125% 09/15/2003 500,000 481,085
FHLB 6.000% 03/26/2004 500,000 491,093
-----------
3,260,144
FEDERAL HOME LOAN MORTGAGE CORPORATION (4.2%)
FHLMC 5.900% 02/14/2006 100,000 97,900
FHLMC 6.980% 01/22/2007 75,000 76,023
FHLMC 5.750% 07/15/2003 500,000 496,029
FHLMC 5.125% 10/15/2008 1,000,000 907,334
FHLMC 5.750% 03/15/2009 1,000,000 945,382
-----------
2,522,668
FEDERAL NATIONAL MORTGAGE ASSOCIATION (3.3%)
FNMA 5.125% 02/13/2004 516,000 494,419
FNMA 6.690% 02/02/2011 500,000 478,883
FNMA 6.350% 05/18/2005 500,000 488,716
FNMA 6.460% 06/26/2008 500,000 479,815
-----------
1,941,833
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES (IDENTIFIED COST $12,706,795) 12,134,720
-----------
SHORT-TERM INVESTMENTS (1.8%)
Fifth Third Repurchase Agreement Dated 4.550% 07/01/1999 1,073,581 1,073,581
-----------
6/30/99 (Collateralized by 1,087,000 U.S. Treasury
Notes, 7.50%, 10-31-99, market value $1,095,322)
TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $1,073,581) 1,073,581
-----------
TOTAL INVESTMENTS (98.4%) (IDENTIFIED COST $61,039,036) 58,601,754
OTHER ASSETS LESS LIABILITIES (1.6%) 928,129
-----------
NET ASSETS (100.0%) $59,529,883
-----------
-----------
</TABLE>
- --------------------------------------------------------------------------------
(1) Security exempt from registration under Rule 144(a) of the Securities Act of
1933. These securities may be resold in transactions exempt from registration,
normally to qualified institutional buyers.
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 22
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SHORT-INTERMEDIATE FIXED-INCOME FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CORPORATE BONDS (45.9%)
ENERGY (2.6%)
Amoco Canada 7.250% 12/01/2002 $ 500,000 $ 514,705
Chevron Trust Fund 8.110% 12/01/2004 650,587 681,782
Shell Oil 6.625% 07/01/1999 250,000 250,000
-------------
1,446,487
FINANCE - BANKS (4.9%)
BankBoston 6.380% 08/11/2000 245,000 244,734
Chase Manhattan 8.625% 05/01/2002 400,000 420,654
First Bank Minnesota 6.250% 08/15/2005 500,000 495,673
First USA Bank 6.625% 12/03/2001 1,115,000 1,120,015
NCNB 9.500% 06/01/2004 285,000 317,965
Security Pacific 10.300% 05/15/2001 125,000 132,293
------------
2,731,334
FINANCE - BROKER RELATED (3.4%)
Bear Stearns 6.500% 07/05/2000 500,000 501,349
Bear Stearns 6.125% 02/01/2003 500,000 488,449
Merrill Lynch 6.000% 03/01/2001 500,000 497,615
Morgan Stanley Dean Witter 6.875% 03/01/2003 400,000 404,309
------------
1,891,722
FINANCE - OTHER (15.1%)
American General Finance 6.200% 03/15/2003 460,000 454,858
Associates Corporation 6.750% 08/01/2001 1,130,000 1,140,954
Chrysler Financial 6.110% 07/28/1999 310,000 310,105
Diageo PLC 6.500% 09/15/1999 500,000 500,620
Ford Motor Credit 7.500% 06/15/2004 500,000 515,086
Ford Motor Credit 6.250% 11/08/2000 650,000 651,318
General Motors Acceptance Corporation 6.700% 04/30/2001 395,000 397,834
General Motors Acceptance Corporation 5.375% 09/30/2002 500,000 482,856
IBM Credit 5.875% 08/25/1999 300,000 300,054
International Lease Finance Corporation 5.780% 03/01/2001 350,000 347,358
International Lease Finance Corporation 6.875% 05/01/2001 535,000 541,950
Nordstrom Credit 6.700% 07/01/2005 500,000 496,925
SAFECO 7.875% 04/01/2005 500,000 513,758
Sears Roebuck Acceptance Corporation 6.400% 10/11/2000 350,000 350,244
Sears Roebuck Acceptance Corporation 6.630% 07/09/2002 542,000 540,770
Sears Roebuck Acceptance Corporation 6.360% 12/04/2001 525,000 522,115
Western National 7.125% 02/15/2004 330,000 334,079
------------
8,400,884
INDUSTRIALS (10.5%)
Anheuser-Busch 8.750% 12/01/1999 270,000 272,914
Anheuser-Busch 6.750% 06/01/2005 500,000 496,206
Avnet 6.450% 08/15/2003 1,000,000 997,494
Baxter International 9.250% 12/15/1999 200,000 202,761
Englehard 6.500% 09/01/2000 445,000 445,313
First Data 6.625% 04/01/2003 500,000 500,216
General Motors 9.125% 07/15/2001 1,085,000 1,138,655
McDonald's 6.625% 09/01/2005 500,000 501,902
Toys R Us 8.250% 02/01/2017 267,000 270,610
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 23
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SHORT-INTERMEDIATE FIXED-INCOME FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INDUSTRIALS - CONTINUED
VF Corporation 6.750% 06/01/2005 $1,000,000 $ 992,364
------------
5,818,435
TRANSPORTATION (1.9%)
Southwest Airlines 8.750% 10/15/2003 500,000 536,977
Union Pacific Railroad 7.060% 05/15/2003 500,000 501,235
------------
1,038,212
UTILITIES (7.5%)
Baltimore Gas & Electric 8.375% 08/15/2001 300,000 311,845
Iowa Electric Light & Power 8.625% 05/15/2001 395,000 410,433
Metropolitan Edison 7.220% 01/30/2003 500,000 506,926
PacifiCorp 6.310% 07/28/2003 550,000 544,494
Pennsylvania Power & Light 6.000% 06/01/2000 750,000 749,603
Public Service Electric & Gas 7.875% 11/01/2001 275,000 283,049
Southern Cal Edison 5.875% 01/15/2001 90,000 89,531
SBC Communications Captial 5.880% 10/06/2003 1,000,000 972,667
U.S. West Communications 8.875% 06/01/2031 250,000 258,641
------------
4,127,189
YANKEE (0.6%)
Province of Manitoba 9.500% 10/01/2000 300,000 313,158
------------
313,158
TOTAL CORPORATE BONDS (IDENTIFIED COST $26,216,146) 25,767,421
------------
U.S. GOVERNMENT AND AGENCY SECURITIES (48.4%)
U.S. TREASURY NOTES (19.2%)
United States Treasury Note 6.875% 07/31/1999 200,000 200,313
United States Treasury Note 8.000% 08/15/1999 1,820,000 1,827,395
United States Treasury Note 7.125% 09/30/1999 650,000 653,453
United States Treasury Note 6.000% 10/15/1999 565,000 566,766
United States Treasury Note 5.875% 11/15/1999 565,000 566,766
United States Treasury Note 5.875% 06/30/2000 500,000 502,657
United States Treasury Note 5.625% 02/28/2001 500,000 501,094
United States Treasury Note 6.375% 03/31/2001 35,000 35,492
United States Treasury Note 6.500% 08/31/2001 500,000 509,375
United States Treasury note 6.250% 10/31/2001 1,300,000 1,318,282
United States Treasury Note 6.250% 01/31/2002 1,400,000 1,420,563
United States Treasury Note 6.250% 02/28/2002 1,300,000 1,319,500
United States Treasury Note 6.625% 03/31/2002 40,000 41,000
United States Treasury Note 6.500% 05/31/2002 430,000 439,675
United States Treasury Note 5.625% 12/31/2002 250,000 249,453
United States Treasury Note 5.500% 03/31/2003 500,000 496,250
------------
10,648,034
FEDERAL HOME LOAN BANK (FHLB) (6.7%)
FHLB 6.000% 03/27/2002 1,000,000 995,311
FHLB 5.780% 03/05/2003 100,000 98,549
FHLB 6.000% 03/26/2004 500,000 491,093
FHLB 6.095% 03/16/2005 2,000,000 1,957,486
FHLB 6.250% 04/06/2005 50,000 49,199
FHLB 6.400% 05/26/2005 125,000 123,318
------------
3,714,956
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 24
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SHORT-INTERMEDIATE FIXED-INCOME FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) (6.9%)
FHLMC 6.150% 03/06/2003 $ 1,250,000 $ 1,240,848
FHLMC 5.750% 07/15/2003 1,750,000 1,736,103
FHLMC Pool E30447 8.500% 02/01/2006 5,925 6,115
FHLMC Pool E39980 8.500% 08/01/2006 4,717 4,869
FHLMC 6.540% 11/06/2007 250,000 245,297
FHLMC 7.214% 03/19/2007 500,000 505,434
FHLMC Pool E43681 7.500% 01/01/2008 113,316 115,267
------------
3,853,933
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (15.6%)
FNMA 5.320% 05/08/2001 1,000,000 988,896
FNMA 5.740% 02/09/2004 2,500,000 2,423,648
FNMA 8.500% 02/01/2005 200,000 203,299
FNMA 6.350% 05/18/2005 500,000 488,715
FNMA 6.430% 05/23/2005 500,000 487,940
FNMA 7.930% 09/20/2006 150,000 150,654
FNMA 7.330% 04/02/2007 50,000 50,403
FNMA 6.850% 09/25/2007 1,000,000 978,198
FNMA 6.860% 10/16/2007 2,140,000 2,093,603
FNMA Pool 185550 7.000% 11/01/2007 64,882 65,274
FNMA 6.500% 07/07/2008 585,000 561,589
FNMA Pool 50953 7.000% 12/01/2008 150,865 151,765
------------
8,643,984
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES 26,860,907
(IDENTIFIED COST $27,352,966) ------------
SHORT-TERM INVESTMENTS (3.3%)
Fifth Third Repurchase Agreement Dated 4.550% 07/01/1999 1,832,492 1,832,492
------------
6/30/99 (Collateralized by 1,855,000 U.S. Treasury
Notes, 7.50%, 10-31-99, market value $1,869,201)
TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $1,832,492) 1,832,492
------------
TOTAL INVESTMENTS (98.2%) (IDENTIFIED COST $55,401,604) 54,460,820
OTHER ASSETS LESS LIABILITIES (1.8%) 1,001,677
------------
NET ASSETS (100.0%) $ 55,462,497
------------
------------
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 25
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
MORTGAGE SECURITIES FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSET-BACKED SECURITITES (3.6%)
Chevy Chase Auto Receivables Trust 1996-2 5.900% 07/15/2003 $ 245,060 $ 245,502
Green Tree Financial - 1994 - D(1) 9.050% 01/15/2015 1,000,000 1,024,060
Green Tree Financial - 1997 - I 7.290% 03/15/2028 800,000 808,480
Green Tree Financial - 1998 - E 6.660% 08/15/2017 1,600,000 1,605,312
Merrill Lynch FHA 42 7.430% 09/01/2022 1,208,202 1,217,734
TMS SBA Loan Trust - 1999 - 1A 5.543% 07/15/2025 1,185,341 1,185,150
------------
6,086,238
TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $6,105,459) 6,086,238
------------
PROJECT LOANS (8.0%)
Arbors of Little Rock 7.450% 11/01/2038 1,517,042 1,530,453
Chapel Hill Assisted Living 7.750% 09/15/1999 515,000 531,527
CLC Excelsior II Apartments 7.875% 02/01/2039 1,000,000 1,047,400
Country Club Village 7.660% 09/01/2038 1,671,071 1,729,993
Desert Mirage Apartments 7.250% 11/25/2037 127,893 127,920
Enclave at Quail Crossing 7.750% 08/31/2038 999,406 1,031,737
Enclave at Stone Brook 7.500% 11/01/2038 1,026,020 1,037,890
Evergreen Towers 7.375% 01/01/2039 1,004,700 1,003,696
Orchard Park Inn 7.840% 03/01/2028 1,019,311 1,050,175
Poplar Towers Apartments 7.750% 06/01/2037 403,715 419,385
Prairie District Lofts 7.405% 05/01/2039 945,000 948,629
River Bluff Apartments 7.750% 06/01/2037 19,951 21,860
Rosewood 8.000% 07/01/2037 1,041,019 1,081,213
Sunshine Gardens West 7.470% 11/01/2038 4,938 5,271
Triangle Point 7.750% 09/01/2039 983,331 1,008,366
Villages at Clear Springs 7.625% 09/30/2038 1,095,598 1,116,480
------------
13,691,995
TOTAL PROJECT LOANS (IDENTIFIED COST $13,454,171) 13,691,995
------------
COLLATERALIZED MORTGAGE OBLIGATIONS (10.1%)
Chase Commercial Securities 1997-2-A1 6.450% 12/19/2004 1,431,475 1,429,743
Commercial Mortgage Asset Trust 1999-C1-A1 6.250% 08/17/2006 995,425 977,597
Deutsche Mortgage and Asset Receiving
Corporation 1998-C1-A1 6.220% 09/15/2007 577,724 563,258
First Union-Lehman Brothers Commercial
Mortgage 1997-C1-A1 7.150% 02/18/2004 1,114,319 1,127,590
GMAC Commercial Mortgage Securities 1998-c2 0.823% 08/15/2023 16,620,000 680,755
GS Mortgage Securities 1998-1 CLA(2) 8.000% 09/20/2027 1,506,664 1,627,813
GS Mortgage Securities 1998-2 CLA(2) 7.750% 05/19/2027 1,376,747 1,394,540
LB Commercial Conduit Mortgage
Trust 1999-C1-A2 6.780% 12/15/2030 1,850,000 1,815,979
Merit Securities 11 CL1-A1 6.580% 07/28/2022 24,630 24,523
Morgan Stanley Capital I-1998-CF1-A1 6.330% 10/15/2007 543,800 536,660
Morgan Stanley Capital I-1998-CF1-A1(2) 1.059% 12/15/2012 12,813,000 606,695
Residential Accredit Loans 1997-QS10 7.250% 10/25/2027 743,481 748,105
Residential Asset Securitization
Trust 1997-A7 7.750% 09/25/2027 2,300,000 2,321,980
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 26
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
MORTGAGE SECURITIES FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Residential Asset Securitization
Trust 1998-A8 6.750% 08/25/2028 $ 935,940 $ 923,773
Rural Housing Trust 1987-1 Rural 2C 6.830% 04/01/2026 647,850 642,007
Ryland Mortgage Securities 1994-7AA2 7.000% 08/25/2025 857,412 856,443
Union Planters Mortgage Financial 1998-1 6.350% 01/25/2028 825,562 821,063
------------
17,098,524
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS 17,098,524
(IDENTIFIED COST $17,599,427) ------------
U.S. GOVERNMENT AND AGENCY BONDS (73.0%)
U.S. TREASURY BONDS (1.4%)
United States Treasury Bond 5.000% 02/28/2001 2,300,000 2,282,032
------------
2,282,032
U.S. TREASURY NOTES (2.4%)
United States Treasury Note 5.500% 03/31/2003 1,750,000 1,736,875
United States Treasury Note 5.500% 05/31/2003 350,000 347,156
United States Treasury Note 4.750% 02/15/2004 390,000 374,766
United States Treasury Note (CPI) 3.875% 04/15/2029 1,617,584 1,596,353
------------
4,055,150
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (17.3%)
GNMA 8.200% 06/15/2012 29,508 30,365
GNMA 8.200% 05/15/2013 42,543 43,773
GNMA 6.000% 04/15/2014 1,000,100 966,748
GNMA 8.000% 08/15/2016 211,721 220,176
GNMA 8.000% 03/15/2017 47,813 49,712
GNMA 8.000% 04/15/2017 75,261 78,249
GNMA 8.000% 02/15/2022 284,931 293,773
GNMA 7.500% 12/15/2022 870,610 880,327
GNMA 7.500% 05/15/2023 684,116 693,219
GNMA 6.500% 10/15/2023 219,565 211,655
GNMA 6.500% 11/15/2023 819,587 790,060
GNMA 6.500% 12/15/2023 2,945,486 2,842,000
GNMA 6.500% 01/15/2024 1,565,506 1,509,103
GNMA 6.500% 02/15/2024 649,118 625,733
GNMA 6.500% 03/15/2024 225,430 217,309
GNMA 6.500% 04/15/2024 1,198,834 1,155,644
GNMA 8.000% 02/15/2025 24,785 25,490
GNMA 8.000% 05/15/2025 28,688 29,504
GNMA 8.000% 07/15/2025 416,790 428,641
GNMA 8.000% 08/15/2025 43,010 44,233
GNMA 8.000% 09/15/2025 169,523 174,343
GNMA 8.000% 11/15/2025 384,959 395,906
GNMA 6.500% 03/15/2026 185,957 180,037
GNMA 7.500% 08/15/2026 85,773 86,852
GNMA 8.000% 09/20/2026 1,239,481 1,265,233
GNMA 7.250% 12/15/2026 341,762 350,008
GNMA 7.500% 08/15/2027 36,619 37,027
GNMA 7.500% 09/15/2027 286,336 289,532
GNMA 7.000% 10/15/2027 142,303 140,669
GNMA 7.500% 10/15/2027 83,260 84,190
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 27
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
MORTGAGE SECURITIES FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) - CONTINUED
GNMA 7.000% 11/15/2027 $ 36,498 $ 36,079
GNMA 7.500% 11/15/2027 94,750 95,808
GNMA 6.500% 04/15/2028 582,850 562,083
GNMA 7.000% 06/15/2028 5,485,325 5,421,704
GNMA 7.000% 07/15/2028 903,265 892,789
GNMA 7.000% 08/15/2028 887,518 877,224
GNMA 7.000% 09/15/2028 1,267,540 1,252,838
GNMA 6.500% 11/15/2028 807,860 779,076
GNMA 6.500% 12/15/2028 219,383 211,567
GNMA 7.000% 12/15/2028 886,049 875,773
GNMA 6.500% 01/15/2029 432,195 416,625
GNMA 6.500% 02/15/2029 754,077 726,910
GNMA 6.000% 02/20/2029 1,488,647 1,388,575
GNMA 7.000% 05/15/2029 437,274 432,101
GNMA 7.250% 11/25/2037 1,372,107 1,372,395
------------
29,481,058
FEDERAL HOUSING AUTHORITY (FHA) (0.1%)
FHA - Blair Project 10.875% 08/01/2028 152,298 149,133
------------
149,133
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) (32.3%)
FHLMC 9.230% 08/15/2008 208,687 215,512
FHLMC 6.500% 08/1/2010 276,051 273,105
FHLMC 6.500% 09/1/2010 280,751 277,754
FHLMC 6.500% 10/1/2010 577,920 571,751
FHLMC 6.500% 11/1/2010 276,774 273,820
FHLMC 6.500% 01/1/2011 379,216 375,168
FHLMC 6.500% 02/1/2011 328,326 324,822
FHLMC 6.500% 04/1/2011 759,996 751,631
FHLMC 7.500% 03/1/2012 329,436 335,004
FHLMC 7.000% 07/1/2012 310,677 312,355
FHLMC 6.500% 12/1/2012 2,955,232 2,919,544
FHLMC 6.500% 02/1/2013 226,864 224,124
FHLMC 6.000% 04/1/2013 64,726 62,593
FHLMC 6.500% 04/1/2013 23,930 23,635
FHLMC 5.500% 05/1/2013 476,543 470,788
FHLMC 5.500% 06/1/2013 43,685 41,392
FHLMC 5.500% 11/1/2013 71,893 68,118
FHLMC 5.500% 12/1/2013 1,814,750 1,719,474
FHLMC 6.500% 01/1/2014 558,038 551,166
FHLMC 6.000% 03/1/2014 1,357,946 1,312,842
FHLMC 6.000% 05/1/2014 142,282 137,556
FHLMC 6.000% 06/1/2014 499,950 483,345
FHLMC 8.750% 12/1/2014 9,908 10,508
FHLMC 9.000% 09/1/2018 249,445 267,354
FHLMC 7.000% 06/1/2024 28,909 28,698
FHLMC 8.000% 07/1/2024 901,607 927,317
FHLMC 8.000% 08/1/2024 150,967 155,271
FHLMC 8.000% 06/1/2025 14,630 15,083
FHLMC 8.000% 07/1/2025 642,882 661,905
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 28
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
MORTGAGE SECURITIES FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) - CONTINUED
FHLMC 8.000% 09/1/2025 $ 17,776 $ 18,268
FHLMC 8.000% 11/1/2025 26,416 27,147
FHLMC 8.000% 12/1/2025 153,786 158,336
FHLMC 8.000% 01/1/2026 10,838 11,137
FHLMC 7.000% 05/1/2026 138,276 137,267
FHLMC 8.000% 06/1/2026 258,059 265,072
FHLMC 8.000% 09/1/2027 9,011 9,268
FHLMC 6.500% 10/1/2028 88,032 85,231
FHLMC 6.500% 11/1/2028 567,486 549,428
FHLMC 6.500% 12/1/2028 5,260,814 5,093,412
FHLMC 6.000% 02/1/2029 1,000,000 942,898
FHLMC 6.000% 03/1/2029 2,000,001 1,885,798
FHLMC 6.500% 04/1/2029 3,491,324 3,379,264
FHLMC 6.500% 05/1/2029 3,457,695 3,346,554
FHLMC 6.500% 06/1/2029 26,144,310 25,303,957
------------
55,004,672
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (19.5%)
FNMA 8.000% 10/1/2009 260,312 267,810
FNMA 8.000% 11/1/2010 860,459 884,904
FNMA 6.500% 02/1/2013 324,955 320,629
FNMA 6.500% 03/1/2013 325,032 320,700
FNMA 6.500% 05/1/2013 23,091 22,780
FNMA 6.000% 07/1/2013 816,283 788,616
FNMA 6.000% 08/1/2013 778,536 752,149
FNMA 6.000% 09/1/2013 253,673 245,075
FNMA 5.500% 10/1/2013 2,929,175 2,773,876
FNMA 6.000% 11/1/2013 682,496 659,365
FNMA 5.500% 12/1/2013 2,714,002 2,570,112
FNMA 6.000% 12/1/2013 1,861,922 1,798,817
FNMA 6.000% 01/1/2014 568,396 549,131
FNMA 5.500% 02/1/2014 335,480 317,208
FNMA 6.000% 02/1/2014 4,866,934 4,701,374
FNMA 5.500% 03/1/2014 385,254 364,750
FNMA 6.000% 03/1/2014 1,984,127 1,916,666
FNMA 6.000% 04/1/2014 35,906 34,679
FNMA 6.000% 05/1/2014 1,928,416 1,862,798
FNMA 6.500% 07/1/2014 500,050 492,973
FNMA 8.000% 05/1/2022 160,289 165,136
FNMA 6.000% 06/1/2024 1,727,934 1,668,922
FNMA 7.500% 08/1/2025 125,762 127,382
FNMA 7.000% 10/1/2025 649,335 643,870
FNMA 7.500% 11/1/2025 23,283 23,583
FNMA 7.500% 08/1/2026 29,806 30,177
FNMA 7.000% 09/1/2026 392,791 389,485
FNMA 7.000% 04/1/2027 607,309 601,874
FNMA 7.500% 11/1/2027 19,844 20,085
FNMA 6.500% 01/1/2028 148,475 143,791
FNMA 6.500% 04/1/2028 1,728,666 1,673,187
FNMA 6.500% 05/1/2028 276,478 267,605
FNMA 7.500% 05/1/2028 357,771 361,920
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 29
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
MORTGAGE SECURITIES FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) - CONTINUED
FNMA 6.500% 08/1/2028 $ 374,280 $ 362,268
FNMA 6.000% 10/1/2028 2,953,157 2,780,794
FNMA 6.000% 12/1/2028 833,803 785,137
FNMA 6.000% 01/1/2029 645,290 607,627
FNMA 6.000% 02/1/2029 238,298 224,389
FNMA 6.500% 02/1/2029 710,417 687,618
------------
33,209,262
TOTAL U.S. GOVERNMENT AND AGENCY BONDS
(IDENTIFIED COST $126,402,316) 124,181,307
------------
SHORT-TERM INVESTMENTS (5.7%)
Fifth Third Repurchase Agreement dated 4.550% 07/01/1999 9,720,000 9,720,000
6/30/99 (Collateralized by 9,915,000 FNMA #4060067, ------------
6.50%, 8-01-24, Market Value $9,915,000)
TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $9,720,000) 9,720,000
------------
TOTAL INVESTMENTS (100.4%) (IDENTIFIED COST $173,281,373) 170,778,064
OTHER ASSETS LESS LIABILITIES (-0.4%) (596,279)
------------
NET ASSETS (100.0%) $ 170,181,785
------------
------------
<CAPTION>
- ---------------------------------------------------------------------------------------------
FORWARD COMMITMENTS
PRINCIPAL DELIVERY COUPON
AGENCY AMOUNT DATE RATE VALUE
<S> <C> <C> <C> <C>
TBA PURCHASE COMMITMENTS AT JUNE 30, 1999
(Cost payable $16,818,438)
FHLMC $ 2,000,000 07/19/1999 5.50% $ 1,824,376
FNMA 2,000,000 07/14/1999 6.00% 1,881,250
FNMA 13,000,000 07/14/1999 7.50% 13,142,194
------------
$ 16,847,820
------------
------------
TBA SALE COMMITMENTS AT JUNE 30, 1999
(Proceeds receivable $12,045,415)
FNMA 700,000 07/14/1999 6.50% $ 676,593
FNMA 8,700,000 07/14/1999 6.50% 8,409,089
FNMA 3,000,000 08/16/1999 7.50% 3,030,000
------------
$ 12,115,682
------------
------------
<CAPTION>
OUTSTANDING FUTURES CONTRACTS
UNREALIZED
UNITS PER CURRENT APPRECIATION/
TYPE EXPIRATION CONTRACT CONTRACT VALUE (DEPRECIATION)
<S> <C> <C> <C> <C> <C>
30 Year Bond Future (Buy) 09/20/1999 20 1,000 $ 2,223,750 $ 20,274
30 Year Bond Future (Sell) 09/20/1999 30 1,000 (3,477,188) 25,358
30 Year Bond Future (Sell) 09/20/1999 67 1,000 (7,303,000) (10,971)
------------
$ 34,661
------------
------------
</TABLE>
See Note 2 for more information regarding forward commitments.
(1) Security has been segregated with the custodian to cover margin requirements
for the open futures contracts at June 30, 1999.
(2) Security exempt from registration under Rule 144(a) of the Securities Act of
1933. These securities may be resold in transactions exempt from registration,
normally to qualified institutional buyers.
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
accessor 30
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. AGENCY BONDS (91.9%)
FEDERAL FARM CREDIT BANK (FFCB) (3.1%)
FFCB Discount Note 4.83% 05/16/2000 $ 10,000,000 $ 9,570,667
-----------
9,570,667
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) (44.5%)
FHLMC Discount Note 4.73% 07/02/1999 10,000,000 9,998,686
FHLMC Discount Note 4.73% 07/06/1999 10,000,000 9,993,431
FHLMC Discount Note 4.88% 07/09/1999 16,084,000 16,066,558
FHLMC Discount Note 4.72% 07/30/1999 10,000,000 9,961,978
FHLMC Discount Note 4.74% 08/02/1999 10,000,000 9,957,911
FHLMC Discount Note 4.74% 08/06/1999 10,000,000 9,952,620
FHLMC Discount Note 4.79% 08/19/1999 10,000,000 9,934,803
FHLMC Discount Note 4.74% 08/26/1999 10,000,000 9,926,267
FHLMC Discount Note 4.88% 09/03/1999 10,000,000 9,913,244
FHLMC Discount Note 4.82% 09/15/1999 10,000,000 9,898,244
FHLMC Discount Note 4.97% 09/16/1999 10,000,000 9,893,697
FHLMC Discount Note 5.00% 09/30/1999 10,000,000 9,873,611
FHLMC Discount Note 5.00% 10/07/1999 10,000,000 9,863,889
-----------
135,234,939
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (34.7%)
FNMA Discount Note 4.71% 07/13/1999 10,000,000 9,984,290
FNMA Discount Note 4.72% 07/15/1999 10,000,000 9,981,644
FNMA Discount Note 5.03% 07/16/1999 16,201,000 16,167,045
FNMA Discount Note 4.70% 07/22/1999 10,000,000 9,972,613
FNMA Discount Note 4.74% 08/13/1999 10,000,000 9,943,383
FNMA Discount Note 4.89% 09/01/1999 10,000,000 9,915,783
FNMA Discount Note 4.91% 09/10/1999 10,000,000 9,903,164
FNMA Discount Note 5.02% 09/23/1999 20,000,000 19,765,733
FNMA Discount Note 5.06% 12/07/1999 10,000,000 9,776,517
-----------
105,410,172
FEDERAL HOME LOAN BANK (FHLB) (9.60%)
FHLB Discount Note 4.76% 04/27/2000 10,000,000 9,602,011
FHLB Discount Note 4.93% 09/10/1999 10,000,000 9,902,769
FHLB Discount Note 4.80% 02/01/2000 10,000,000 9,713,334
-----------
29,218,114
TOTAL U.S. AGENCY BONDS (Identified Cost $279,433,892) 279,433,892
-----------
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 31
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY FUND
SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
INTEREST MATURITY PRINCIPAL
DESCRIPTION RATE DATE AMOUNT VALUE
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SHORT-TERM INVESTMENTS (7.3%)
Fifth Third Repurchase Agreement 4.55% 07/01/1999 $ 22,331,878 $ 22,331,878
Dated 6/30/99 (Collateralized by -------------
1,430,000 FGTW #G30141, 6.50%,
01-01-19, market value $1,430,000
and 21,349,000 FHLM #E00570, 6.00%,
09-01-13, market value $21,349,000)
TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $22,331,878) 22,331,878
-------------
TOTAL INVESTMENTS (99.2%) (IDENTIFIED COST $301,765,770)(1) 301,765,770
OTHER ASSETS LESS LIABILITIES (0.8%) 2,423,910
-------------
NET ASSETS (100.0%) $ 304,189,680
-------------
-------------
</TABLE>
- --------------------------------------------------------------------------------
(1)The identified cost for Federal Tax purposes is the same as shown above.
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 32
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABLILITIES
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
SMALL TO INTERNATIONAL
DESCRIPTION GROWTH VALUE MID-CAP EQUITY
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, At Value (Note 2) $303,829,306 $166,686,743 $388,949,926 $214,162,032
Repurchase Agreements, At Cost 8,993,806 4,727,470 12,825,190 400,883
----------------------------------------------------------------
Total Investments (*) 312,823,112 171,414,213 401,775,116 214,562,915
Cash -- -- -- --
Foreign Currency At Value -- -- -- 195,922
Receivable for Investments Sold 1,220,007 -- 6,061,902 10,123,242
Receivable for Capital Shares Sold 3,689,303 1,592,789 3,051,154 2,561,002
Dividends and Interest Receivable 184,694 147,777 98,055 454,973
Receivable for Futures Contract Settlement -- 87,500 -- --
Tba Purchase Commitments, At Value -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Total Assets 317,917,116 173,242,279 410,986,227 227,898,054
- -------------------------------------------------------------------------------------------------------------
LIABILITIES:
Cash Overdraft 58,134 -- -- --
Open Forward Currency Contracts -- -- -- 22,521
Distributions Payable 1,335,993 527,593 5,190,456 1,367,736
Payable for Investments Purchased 3,957,676 -- -- 23,176,099
Payable for Capital Shares Repurchased 226,332 1,800,033 3,910,340 1,737,790
Payable Due to Accessor Capital (Note 3) 104,865 58,514 187,994 81,755
Money Managers Fee Payable (Note 3) 219,521 125,980 362,608 252,357
Payable for Futures Contract Settlement -- -- -- --
Tba Sale Commitments, At Value -- -- -- --
Accrued Expenses and Other Liabilities 78,377 99,856 244,143 169,285
- -------------------------------------------------------------------------------------------------------------
Total Liabilities 5,980,898 2,611,976 9,895,541 26,807,543
- -------------------------------------------------------------------------------------------------------------
Net Assets $311,936,218 $170,630,303 $401,090,686 $201,090,511
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Paid-in Capital $237,855,808 $138,299,387 $328,073,723 $149,090,812
Net Unrealized Appreciation
(Depreciation) of Investments, Receivables,
Payables, and Futures Contracts 62,194,622 21,220,820 47,020,376 27,483,493
Undistributed Net Investment Income -- 12,322 -- 583,652
Accumulated Net Realized Gain (Loss)
On Investments, Futures, Contracts,
Options, and Foreign Currencies 11,885,788 11,097,774 25,996,587 23,932,554
- -------------------------------------------------------------------------------------------------------------
Net Assets $311,936,218 $170,630,303 $401,090,686 $201,090,511
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
NET ASSETS:
Advisor Class $280,244,939 $150,594,556 $375,520,115 $180,255,980
Investor Class 31,691,279 20,035,747 25,570,571 20,834,531
- -------------------------------------------------------------------------------------------------------------
Total $311,936,218 $170,630,303 $401,090,686 $201,090,511
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
OUTSTANDING SHARES:
Advisor Class 8,871,038 6,324,980 14,829,625 9,694,314
Investor Class 1,007,950 841,410 1,014,911 1,126,227
- -------------------------------------------------------------------------------------------------------------
Total 9,878,988 7,166,390 15,844,536 10,820,541
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
Advisor Class $ 31.59 $ 23.81 $ 25.32 $ 18.59
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
Investor Class $ 31.44 $ 23.81 $ 25.19 $ 18.50
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
(*) Investments, At Cost $250,628,490 $150,380,080 $354,754,740 $187,029,062
- -------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 33
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABLILITIES
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
INTERMEDIATE SHORT-INT MORTGAGE U.S. GOVERNMENT
DESCRIPTION FIXED-INCOME FIXED-INCOME SECURITIES MONEY
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, At Value (Note 2) $ 57,528,173 $ 52,628,328 $ 161,058,064 $ 279,433,892
Repurchase Agreements, At Cost 1,073,581 1,832,492 9,720,000 22,331,878
---------------------------------------------------------------------
Total Investments (*) 58,601,754 54,460,820 170,778,064 301,765,770
Cash -- -- 4,419 --
Foreign Currency At Value -- -- -- --
Receivable for Investments Sold -- -- 15,505,702 --
Receivable for Capital Shares Sold 573,805 434,774 830,535 3,618,515
Dividends and Interest Receivable 996,784 965,053 1,086,333 2,823
Receivable for Futures Contract Settlement -- -- -- --
Tba Purchase Commitments, At Value -- -- 16,847,820 --
- ------------------------------------------------------------------------------------------------------------------
Total Assets 60,172,343 55,860,647 205,052,873 305,387,108
- ------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Cash Overdraft -- -- -- --
Open Forward Currency Contracts -- -- -- --
Distributions Payable 518,876 294,200 1,176,164 998,216
Payable for Investments Purchased -- -- 21,116,277 --
Payable for Capital Shares Repurchased 13,059 21,185 71,077 104,200
Payable Due to Accessor Capital (Note 3) 17,459 16,142 49,934 57,435
Money Manager Fee Payable (Note 3) 5,910 7,250 92,875 29,660
Payable for Futures Contract Settlement -- -- 56,664 --
Tba Sale Commitments, At Value -- -- 12,115,682 --
Accrued Expenses and Other Liabilities 87,156 59,373 192,415 7,917
- ------------------------------------------------------------------------------------------------------------------
Total Liabilities 642,460 398,150 34,871,088 1,197,428
- ------------------------------------------------------------------------------------------------------------------
Net Assets $ 59,529,883 $ 55,462,497 $ 170,181,785 $ 304,189,680
- ------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Paid-in Capital $ 62,221,300 $ 56,379,030 $ 172,578,848 $ 304,192,659
Net Unrealized Appreciation
(Depreciation) of Investments,receivables,
Payables, and Futures Contracts (2,437,282) (940,784) (2,509,533) --
Undistributed Net Investment Income (21,162) (3,945) 31,139 (605)
Accumulated Net Realized Gain (Loss)
On Investments, Futures, Contracts,
Options, and Foreign Currencies (232,973) 28,196 81,331 (2,374)
- ------------------------------------------------------------------------------------------------------------------
Net Assets $ 59,529,883 $ 55,462,497 $ 170,181,785 $ 304,189,680
- ------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Advisor Class $ 49,990,136 $ 48,756,491 $ 149,432,430 $ 297,465,288
Investor Class 9,539,747 6,706,006 20,749,355 6,724,392
- ------------------------------------------------------------------------------------------------------------------
Total $ 59,529,883 $ 55,462,497 $ 170,181,785 $ 304,189,680
- ------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
OUTSTANDING SHARES:
Advisor Class 4,286,832 4,064,966 12,220,943 297,468,662
Investor Class 818,093 559,112 1,696,962 6,724,227
- ------------------------------------------------------------------------------------------------------------------
Total 5,104,925 4,624,078 13,917,905 304,192,889
- ------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE:
Advisor Class $ 11.66 $ 11.99 $ 12.23 $ 1.00
- ------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
Investor Class $ 11.66 $ 11.99 $ 12.23 $ 1.00
- ------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
(*) Investments, At Cost $ 61,039,036 $ 55,401,604 $ 173,281,373 $ 301,765,770
- ------------------------------------------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMAION.
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
accessor 34
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
SMALL TO INTERNATIONAL
GROWTH VALUE MID-CAP EQUITY
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends (Net of Foreign Withholding
Taxes of $232,565 for International
Equity Fund, and $5,456 for Growth Fund) $ 855,523 $ 1,101,317 $ 1,032,379 $ 1,767,307
Interest 87,346 104,753 171,675 130,312
- --------------------------------------------------------------------------------------------------------------
Total Investment Income 942,869 1,206,070 1,204,054 1,897,619
- --------------------------------------------------------------------------------------------------------------
EXPENSES:
Management Fee (Note 3) 537,812 311,626 959,299 475,106
Money Manager Fee (Note 3) 348,374 215,211 671,504 518,299
Transfer Agent and Administration Fees (Note 3) 155,368 99,536 222,290 116,358
Fund Accounting Fees 21,615 15,790 35,084 18,794
Legal Fees 31,757 39,915 198,732 9,019
Audit Fees 15,223 19,142 21,234 22,017
Custodian Fees 11,023 10,295 15,306 12,151
Registration Fees 17,571 31,215 35,851 23,709
Directors Fees 1,620 1,552 1,536 1,552
Printing/postage Expense 1,588 2,946 28,063 6,093
Other 1,082 3,130 3,158 1,715
INVESTOR CLASS ONLY (NOTES 2 & 3):
Distribution and Shareholder Services Fees 31,321 16,889 26,587 26,195
Administrative Services Fees 31,321 16,889 26,587 26,195
- --------------------------------------------------------------------------------------------------------------
Net Expenses 1,205,675 784,136 2,245,231 1,313,967
- --------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (262,806) 421,934 (1,041,177) 583,652
- --------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Net Realized Gain (Loss) On:
Investments 12,209,558 12,184,522 26,626,565 25,498,183
Foreign Exchange (1,599,850)
Options
Change in Unrealized Appreciation
(Depreciation) 9,732,650 6,025,215 5,691,039 (6,385,473)
Change in Unrealized Depreciation of
Foreign Currency -- -- -- (34,308)
- --------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) 21,942,208 18,209,737 32,317,604 17,478,552
- --------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) Resulting From
Operations $ 21,679,402 $ 18,631,671 $ 31,276,427 $ 18,062,204
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 35
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
INTERMEDIATE SHORT-INT MORTGAGE U.S. GOVERNMENT
FIXED-INCOME FIXED-INCOME SECURITIES MONEY
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ -- $ -- $ -- $ --
Interest 1,835,570 1,575,065 5,135,696 5,606,386
- --------------------------------------------------------------------------------------------------------------
Total Investment Income 1,835,570 1,575,065 5,135,696 5,606,386
- --------------------------------------------------------------------------------------------------------------
EXPENSES:
Management Fee (Note 3) 104,278 92,451 275,291 287,040
Money Manager Fee (Note 3) 11,587 10,272 175,881 --
Transfer Agent and Administration Fees (Note 3) 39,823 36,151 108,401 148,734
Fund Accounting Fees 18,320 19,529 56,963 38,233
Legal Fees 7,428 10,110 58,197 5,461
Audit Fees 16,616 19,181 21,447 17,439
Custodian Fees 6,981 3,640 30,121 4,655
Registration Fees 43,002 17,030 55,899 37,838
Directors Fees 1,501 1,687 1,563 1,502
Printing/postage Expense 4,675 4,642 3,167 2,844
Other 4,746 467 4,802 2,445
INVESTOR CLASS ONLY (NOTES 2&3):
Distribution and Shareholder Services Fees 11,964 8,114 22,822 6,919
Administrative Services Fees 11,964 8,114 22,822 6,919
- --------------------------------------------------------------------------------------------------------------
Net Expenses 282,885 231,388 837,376 560,029
- --------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 1,552,685 1,343,677 4,298,320 5,046,357
- --------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Net Realized Gain (Loss) On:
Investments (229,912) 28,195 158,393 --
Foreign Exchange -- -- -- --
Options -- -- 13,594 --
Change in Unrealized Appreciation
(Depreciation) (3,495,939) (1,418,211) (4,492,151) --
Change in Unrealized Depreciation
of Foreign Currency -- -- -- --
- --------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) (3,725,851) (1,390,016) (4,320,164) --
- --------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) Resulting From
Operations $(2,173,166) $ (46,339) $ (21,844) $ 5,046,357
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 36
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
GROWTH VALUE
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
JUNE 30, 1999 DEC. 31, 1998 JUNE 30, 1999 DEC. 31, 1998
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net Investment Income (Loss) $ (262,806) $ 143,454 $ 421,934 $ 1,187,583
Net Realized Gain On Investments 12,209,558 13,472,712 12,184,522 10,807,315
Change in Unrealized Appreciation
of Investments 9,732,650 36,852,522 6,025,215 763,235
- ------------------------------------------------------------------------------------------------------------
Net Increase From Operations 21,679,402 50,468,688 18,631,671 12,758,133
DISTRIBUTIONS:
From Net Investment Income
Advisor Class -- (157,895) (404,985) (1,171,149)
Investor Class -- -- (4,627) (28,451)
-----------------------------------------------------------------
-- (157,895) (409,612) (1,199,600)
From Net Realized Gain On Investments
Advisor Class (1,272,692) (13,128,264) (104,235) (10,936,917)
Investor Class (145,196) (1,458,188) (13,746) (1,071,932)
-----------------------------------------------------------------
(1,417,888) (14,586,452) (117,981) (12,008,849)
In Excess of Net Realized Gain
On Investments
Advisor Class -- -- -- (882,256)
Investor Class -- -- -- (86,511)
-----------------------------------------------------------------
-- -- -- (968,767)
- ------------------------------------------------------------------------------------------------------------
Net Decrease From Distributions (1,417,888) (14,744,347) (527,593) (14,177,216)
CAPITAL SHARE TRANSACTIONS (NOTE 4):
Proceeds From Subscriptions 150,533,039 105,180,652 44,917,708 84,974,025
Reinvestment of Distributions 1,040,198 10,503,938 218,127 8,519,703
Cost of Redemptions (39,774,898) (59,439,572) (20,324,824) (45,486,053)
- ------------------------------------------------------------------------------------------------------------
Net Increase From Capital Share
Transactions 111,798,339 56,245,018 24,811,011 48,007,675
Total Increase in Net Assets 132,059,853 91,969,359 42,915,089 46,588,592
- ------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of Period 179,876,365 87,907,006 127,715,214 81,126,622
- ------------------------------------------------------------------------------------------------------------
End of Period $ 311,936,218 $ 179,876,365 $ 170,630,303 $ 127,715,214
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Undistributed Net Investment Income $ -- $ -- $ 12,322 $ --
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 37
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
SMALL TO MID CAP INTERNATIONAL EQUITY
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
JUNE 30, 1999 DEC. 31, 1998 JUNE 30, 1999 DEC. 31, 1998
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net Investment Income (Loss) $ (1,041,177) $ (505,434) $ 583,652 $ (443,058)
Net Realized Gain On Investments,
Options, and Foreign Currency 26,626,565 15,196,539 23,898,333 3,399,692
Change in Unrealized Appreciation
(Depreciation) of Investments 5,691,039 18,018,953 (6,419,781) 21,019,700
- ---------------------------------------------------------------------------------------------------------------
Net Increase From Operations 31,276,427 32,710,058 18,062,204 23,976,334
DISTRIBUTIONS:
From Net Realized Gain On Investments
Advisor Class (2,779,889) (16,858,274) (1,226,056) (2,754,762)
Investor Class (188,099) (1,270,675) (141,680) (344,546)
- ---------------------------------------------------------------------------------------------------------------
Net Decrease From Distributions (2,967,988) (18,128,949) (1,367,736) (3,099,308)
CAPITAL SHARE TRANSACTIONS (NOTE 4):
Proceeds From Subscriptions 202,824,711 229,596,797 94,483,045 126,134,699
Reinvestment of Distributions 1,530,535 8,422,677 730,115 1,671,525
Cost of Redemptions (111,732,190) (97,662,830) (79,171,035) (131,770,463)
- ---------------------------------------------------------------------------------------------------------------
Net Increase From Capital Share
Transactions 92,623,056 140,356,644 16,042,125 (3,964,239)
Total Increase in Net Assets 120,931,495 154,937,753 32,736,593 16,912,787
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of Period 280,159,191 125,221,438 168,353,918 151,441,131
- ---------------------------------------------------------------------------------------------------------------
End of Period $ 401,090,686 $ 280,159,191 $ 201,090,511 $ 168,353,918
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
Undistributed Net Investment Income $ -- $ -- $ 583,652 $ --
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 38
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
INTERMEDIATE FIXED-INCOME SHORT-INT FIXED-INCOME
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
JUNE 30, 1999 DEC. 31, 1998 JUNE 30, 1999 DEC. 31, 1998
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net Investment Income (Loss) $ 1,552,685 $ 2,855,371 $ 1,343,677 $ 2,408,090
Net Realized Gain (Loss) On Investments (229,912) 1,805,578 28,195 615,501
Change in Unrealized Appreciation
(Depreciation) of Investments (3,495,939) (618,921) (1,418,211) 87,741
- ------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) From Operations (2,173,166) 4,042,028 (46,339) 3,111,332
DISTRIBUTIONS:
From Net Investment Income
Advisor Class (1,333,826) (2,691,289) (1,208,228) (2,311,435)
Investor Class (243,206) (140,300) (158,158) (76,102)
------------------------------------------------------------------
(1,577,032) (2,831,589) (1,366,386) (2,387,537)
From Net Realized Gain On Investments
Advisor Class (207,907) (172,760) (40,343) (455,892)
Investor Class (39,824) (32,535) (5,575) (66,763)
------------------------------------------------------------------
(247,731) (205,295) (45,918) (522,655)
- ------------------------------------------------------------------------------------------------------------
Net Decrease From Distributions (1,824,763) (3,036,884) (1,412,304) (2,910,192)
CAPITAL SHARE TRANSACTIONS (NOTE 4 ):
Proceeds From Subscriptions 18,747,887 44,151,859 11,783,853 24,488,550
Reinvestment of Distributions 592,424 998,916 253,560 669,137
Cost of Redemptions (13,447,776) (43,717,552) (3,825,136) (17,592,006)
- ------------------------------------------------------------------------------------------------------------
Net Increase From Capital Share
Transactions 5,892,535 1,433,223 8,212,277 7,565,681
Total Increase in Net Assets 1,894,606 2,438,367 6,753,634 7,766,821
- ------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of Period 57,635,277 55,196,910 48,708,863 40,942,042
- ------------------------------------------------------------------------------------------------------------
End of Period $ 59,529,883 $ 57,635,277 $ 55,462,497 $ 48,708,863
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Undistributed Net Investment Income $ (21,162) $ 3,185 $ (3,945) $ 18,764
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 39
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
MORTGAGE SECURITIES U.S. GOVERNEMENT MONEY
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
JUNE 30, 1999 DEC. 31, 1998 JUNE 30, 1999 DEC. 31, 1998
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS $ 4,298,320 $ 7,613,803 $ 5,046,357 $ 3,379,885
FROM OPERATIONS:
Net Investment Income $ 4,298,320 $ 7,613,803 $ 5,046,357 $ 3,379,885
Net Realized Gain On Investments 171,987 1,178,903 -- 2,662
Change in Unrealized Depreciation
of Investments (4,492,151) (454,778) -- --
- ------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) From Operations (21,844) 8,337,928 5,046,357 3,382,547
DISTRIBUTIONS:
From Net Investment Income
Advisor Class (3,899,411) (7,113,868) (4,938,714) (3,286,631)
Investor Class (478,973) (434,773) (108,248) (93,249)
------------------------------------------------------------------
(4,378,384) (7,548,641) (5,046,962) (3,379,880)
From Net Realized Gain On Investments
Advisor Class (337,227) (1,038,630) -- --
Investor Class (46,868) (98,940) -- --
------------------------------------------------------------------
(384,095) (1,137,570) -- --
- ------------------------------------------------------------------------------------------------------------
Net Decrease From Distributions (4,762,479) (8,686,211) (5,046,962) (3,379,880)
CAPITAL SHARE TRANSACTIONS (NOTE 4):
Proceeds From Subscriptions 38,643,321 74,612,172 303,830,013 276,126,293
Reinvestment of Distributions 956,144 1,725,139 106,614 151,860
Cost of Redemptions (10,790,362) (39,579,070) (157,965,488) (168,971,567)
- ------------------------------------------------------------------------------------------------------------
Net Increase From Capital Share
Transactions 28,809,103 36,758,241 145,971,139 107,306,586
Total Increase in Net Assets 24,024,780 36,409,958 145,970,534 107,309,253
- ------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of Period 146,157,005 109,747,047 158,219,146 50,909,893
- ------------------------------------------------------------------------------------------------------------
End of Period $ 170,181,785 $ 146,157,005 $ 304,189,680 $ 158,219,146
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Undistributed Net Investment Income $ 31,139 $ 111,203 $ (605) $ --
</TABLE>
- --------------------------------------------------------------------------------
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
accessor 40
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
- --------------------------------------------------------------------------------
1. ORGANIZATION
Accessor Funds, Inc. ("Accessor Funds") is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment company
consisting of eight diversified investment funds: Growth Fund, Value Fund
(formerly the Value and Income Portfolio), Small to Mid Cap Fund (together
the "Equity Funds"), International Equity Fund (the "International Fund"),
Intermediate Fixed-Income Fund, Short-Intermediate Fixed-Income Fund,
Mortgage Securities Fund (together the "Bond Funds"), and U.S. Government
Money Fund (the "Money Fund") (individually, a "Fund", collectively, the
"Funds"). Accessor Funds was incorporated in Maryland on June 10, 1991. Each
Fund offers two classes of shares, Advisor Class Shares and Investor Class
Shares. Both classes of shares have identical rights and privileges except
with respect to expenses specific to each class, and voting rights on matters
affecting a single class, including distribution, shareholder service and
administrative service arrangements.
- --------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Funds.
- - SECURITY VALUATION
Equity securities listed and traded principally on a national securities
exchange are valued on the basis of last sale price on such exchange on the day
of valuation or, if no sale occurred on such day, at the closing bid price on
the primary exchange on which the security is traded. Domestic over-the-counter
equity and fixed income securities and options are valued on the basis of the
closing bid price. International securities traded over-the-counter are valued
on the basis of the mean of bid prices. Futures contracts are valued on the
basis of the last sales price.
Domestic fixed income securities and other assets for which market
quotations are readily available (other than obligations with remaining
maturities of 60 days or less) are valued on the basis of quotations obtained
from dealers or pricing services with consideration of such factors as
institutional-sized trading in similar groups of securities, quality, yield,
coupon rate, maturity, type of issue, trading characteristics and other market
data.
Investments in the Money Fund and short-term investments maturing in 60 days
or less are valued at cost, which approximates market value.
Investments for which market quotations are not readily available are valued
at their fair value as determined in good faith in accordance with procedures
adopted by the Board of Directors.
- - SECURITY TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are accounted for on the date the securities are
purchased or sold (trade date). Interest income is recorded on the accrual
basis. All premiums and discounts are amortized or accreted for both financial
statement and tax reporting purposes as required by Federal Income Tax
regulations. Dividend income, less foreign tax withheld, is recorded on the
ex-dividend date or upon receipt of ex-dividend notification in the case of
certain foreign securities. Realized gains and losses on the sale of investments
are determined on the identified cost basis.
- - FOREIGN CURRENCY TRANSACTIONS
The books and records of the Funds are maintained in U.S. dollars. The Bond
Funds may purchase debt obligations that are payable in a foreign currency, and
the International Fund and Equity Funds may purchase equity securities that are
payable in a foreign currency. For these Funds, investment securities, other
assets and liabilities denominated in a foreign currency are translated into
U.S. dollars at the exchange rate on the day of valuation. Purchases and sales
of securities, income receipts and expense payments are translated into U.S.
dollars at the rate on the dates of the transactions.
Reported net realized foreign exchange gains or losses arise from sales of
securities denominated in foreign currencies, purchases and sales of foreign
currencies, currency gains or losses realized between the trade and settlement
dates of securities transactions, and the difference between the amount of
expenses recorded on each of the Fund's books and the U.S. dollar equivalent of
the amounts actually received or paid. Net unrealized foreign exchange gains or
losses arise from changes in the value of assets and liabilities, including
investments in securities, resulting from changes in the exchange rates.
The Funds (other than the Money Fund) report certain foreign currency related
security transactions as components of realized gains and losses in the
statements of operations for financial reporting purposes, whereas such
components are treated as ordinary income for Federal income tax purposes. The
Funds 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.
- --------------------------------------------------------------------------------
accessor 41
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
- --------------------------------------------------------------------------------
Foreign security and currency transactions may involve certain considerations
and risks not typically associated with those of U.S. dollar denominated
transactions. These risks include political or economic instability in the
country of the issuer, the difficulty of predicting international trade
patterns, the possibility of imposition of exchange controls and the risk of
currency fluctuations.
- - OFF-BALANCE SHEET RISK
The Funds may trade financial instruments with off-balance sheet risk in the
normal course of investing activities and to assist in managing exposure to
market risks such as interest rates and foreign currency exchange rates. These
financial instruments include forward foreign currency exchange contracts,
futures contracts and options transactions.
The notional or contractual amounts of these instruments represent the
investment the Funds have in particular classes of financial instruments and do
not necessarily represent the amounts potentially subject to risk. The
measurement of the risks associated with these instruments is meaningful only
when all related and offsetting transactions are considered.
- - FUTURES CONTRACTS
The Funds (other than the Money Fund) are permitted to enter into financial
futures contracts and stock index futures contracts in accordance with their
investment objectives. The International Fund may also purchase and write
futures contracts on foreign currencies. A Fund 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 Fund each day, dependent
on daily fluctuations in the value of the contract. Such payments or receipts
are known as variation margin and are recorded for financial statement purposes
as unrealized gains or losses by a Fund. Should interest rates move
unexpectedly, a Fund may not achieve the anticipated benefits of the financial
futures contracts and may realize a loss. When the contract is closed, a Fund
records a realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed. The
potential risk to the Funds is that the change in the value of the underlying
securities may not correlate to the change in value of the contracts.
- - FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
The International Fund 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 Fund may
also use these contracts to hedge the U.S. dollar value of securities it already
owns denominated in foreign currencies. Forward foreign currency contracts are
valued at the forward rate, and are marked-to-market daily. The change in market
value is recorded as an unrealized gain or loss until the contract settlement
date, at which time the Fund records a realized gain or loss equal to the
difference between the value of the contract at the time it was opened and the
value at the time it was closed.
The use of forward foreign currency contracts does not eliminate
fluctuations in the underlying prices of the International Fund'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 Fund could be exposed to risks if the
counterparties to the contracts are unable to meet the terms of their
contracts.
- - OPTIONS TRANSACTIONS
The Funds (other than the Money Fund) may purchase and sell call and put options
on securities and securities indices, provided such options are traded on a U.S.
or foreign securities exchange or in an over-the-counter market. The
International Fund may also purchase and sell call and put options on foreign
currencies. The Equity Funds may utilize options as a substitute for direct
investment.
When any of the Funds write a covered call or put option, an amount equal to
the premium received is included in that Fund's statement of assets and
liabilities as a liability. The amount of the liability is subsequently
marked-to-market to reflect the current market value of the option. If an option
expires on its stipulated expiration date or if the Fund enters into a closing
purchase transaction, a gain or loss is realized. If a written call option is
exercised, a gain or loss is realized for the sale of the underlying security
and the proceeds from the sale are increased by the premium originally received.
If a written put option is exercised, the cost of the security acquired is
decreased by the premium originally received. As writer of an option, the Fund
has no control over whether the underlying securities are subsequently sold
(call) or purchased (put) and, as a result, bears the market risk of an
unfavorable change in the price of the security underlying the written option.
When any of the Funds purchase a call or put option, an amount equal to the
premium paid is included in that Fund's statement of assets and liabilities as
an investment, and is subsequently marked-to-market to reflect the current
market value of the
- --------------------------------------------------------------------------------
accessor 42
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
- --------------------------------------------------------------------------------
option. If an option expires on the stipulated expiration date or if a Fund
enters into a closing sale transaction, a gain or loss is realized. If a Fund
exercises a call, the cost of the security acquired is increased by the premium
paid for the call. If a Fund exercises a put option, a gain or loss is realized
from the sale of the underlying security, and the proceeds from such sale are
decreased by the premium originally paid. Written and purchased options are
non-income producing securities.
The option techniques utilized are to hedge against changes in interest
rates, foreign currency exchange rates or securities prices in order to
establish more definitely the effective return on securities or currencies held
or intended to be acquired by a Fund, to reduce the volatility of the currency
exposure associated with investment in non-U.S. securities, or as an efficient
means of adjusting exposure to the bond, equity and currency markets and not for
speculation.
- - REPURCHASE AGREEMENTS
The Funds may enter into repurchase agreements (agreements to purchase U.S.
Treasury notes and bills, subject to the seller's agreement to repurchase them
at a specified time and price) with well-established dealers or institutions
that the Funds' management has determined to be creditworthy. It is the Funds'
policy to take possession of the underlying securities and, on a daily basis,
mark-to-market such securities to ensure that the market value including accrued
interest is at least equal to the amount owed to the Funds under each repurchase
agreement.
- - DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income are declared daily and paid monthly for
the Money Fund; declared and paid monthly for the Bond Funds; declared and paid
quarterly for the Equity Funds; declared and paid annually for the International
Fund. Distributions of net realized gains, if any, will be declared and paid at
least annually for all Funds. Distributions to shareholders are recorded on the
ex-dividend date.
Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles.
- - FEDERAL INCOME TAXES
It is each Fund's intention to comply with the requirements of the Internal
Revenue Code (the "Code") to qualify as a regulated investment company and
distribute all of its taxable income and realized gains, if any, to
shareholders. In addition, by distributing all of its taxable income and
realized gains to shareholders, the Funds will not be subject to a Federal
excise tax. Accordingly, no provision for Federal income taxes is required in
the financial statements.
Each Fund files a tax return annually using tax accounting methods required
under provisions of the Code which may differ from generally accepted accounting
principles, the basis on which these financial statements are prepared. The
differences arise primarily from the treatment of foreign currency transactions
and futures contracts and the deferral of certain losses under Federal income
tax regulations. Accordingly, the amount of net investment income and net
realized gains or losses reported in these financial statements may differ from
that reported in each Fund's tax return and, consequently, the character of
distributions to shareholders reported in the financial highlights may differ
from that reported to shareholders for Federal income tax purposes.
Distributions which exceed net investment income and net realized gains for
financial reporting purposes but not for tax purposes, if any, are shown as
distributions in excess of net investment income and net realized gains in the
accompanying financial statements.
- - FORWARD COMMITMENTS
The Funds may contract to purchase securities for a fixed price at a future date
beyond the customary settlement period (i.e. "when issued," "delayed delivery,"
"forward commitment" or "TBA") consistent with a Fund's ability to manage its
investment portfolio and meet redemption requests. These transactions involve a
commitment by a Fund to purchase or sell securities for a predetermined price or
yield with payment and delivery taking place more than three days in the future,
or after a period longer than the customary settlement period for that type of
security. No interest will be earned by a Fund on such purchases until the
securities are delivered; however the market value may change prior to delivery.
The Funds may enter into TBA sale commitments to hedge their Fund positions
or to sell mortgage-backed securities it owns under delayed delivery
arrangements. Proceeds of TBA sale commitments are not received until the
contractual settlement date. During the time a TBA sale commitment is
outstanding, equivalent deliverable securities, or an offsetting TBA purchase
commitment deliverable on or before the sale commitment date, are held as
"cover" for the transaction.
Unsettled TBA sale commitments are valued at the current market value of the
underlying securities, generally according to the procedures described under
"Security Valuation" above. The contract is "marked-to-market" daily and the
change in mar-
- --------------------------------------------------------------------------------
accessor 43
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
- --------------------------------------------------------------------------------
ket value is recorded by the Fund as an unrealized gain or loss. If the TBA
sale commitment is closed through the acquisition of an offsetting purchase
commitment, the Fund realizes a gain or loss from the sale of the securities
based upon the unit price established at the date the commitment was entered
into.
- - ORGANIZATIONAL EXPENSES
Organizational expenses are being amortized on a straight-line basis over a
period not to exceed 60 months. For the period ended June 30, 1999 the
International Fund amortized $6,764 in deferred organizational expenses.
- - OTHER
Shared expenses incurred by Accessor Funds are allocated among the Funds based
on each Fund's ratio of relative net assets to the combined net assets.
Specifically identified direct expenses are charged to each Fund as incurred to
the extend practicable. Investment income, realized and unrealized gains and
losses and Fund expenses not specific to any class of shares are prorated among
the classes based upon the relative net assets of each class. Specifically
identified direct expenses of each class are charged to that class as incurred.
- - ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
3. RELATED PARTY TRANSACTIONS
- - MANAGER
Accessor Funds has a management agreement with Accessor Capital Management L.P.
("Accessor Capital"). Pursuant to this agreement, Accessor Capital operates and
administers the provision of all general management, investment advisory and
Fund management services. Accessor Capital also manages the U.S. Government
Money Fund. Fees paid to Accessor Capital are computed monthly based on the
following annualized rates calculated on the average daily net assets of each
Fund.
<TABLE>
<CAPTION>
----------------------------------------------------------------
----------------------------------------------------------------
FUND ANNUAL MANAGEMENT FEE
<S> <C>
----------------------------------------------------------------
GROWTH 0.45%
VALUE 0.45
SMALL TO MID CAP 0.60
INTERNATIONAL EQUITY 0.55
INTERMEDIATE FIXED-INCOME 0.36
SHORT-INTERMEDIATE FIXED-INCOME 0.36
MORTGAGE SECURITIES 0.36
U.S. GOVERNMENT MONEY 0.25
----------------------------------------------------------------
</TABLE>
- - MONEY MANAGERS
Each Fund's assets (other than the US Government Money Fund) are invested by an
investment management organization (individually, a "Money Manager";
collectively, the "Money Managers"), researched and recommended by Accessor
Capital. For the first five complete calendar quarters of investment operations
for a Fund, each Fund will pay its respective Money Manager on a quarterly basis
an annual fee based on the average daily net assets of the Fund 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 Fund, 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 Accessor Funds' Board of Directors:
- --------------------------------------------------------------------------------
accessor 44
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FUND INDEX
- --------------------------------------------------------------------------------
Growth S&P 500/BARRA Growth Index
Value S&P 500/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-Int Fixed-Income Lehman Brothers Government/Corporate 1-5 Year Index
Mortgage Securities Lehman Brothers Mortgage-Backed Securities Index
- --------------------------------------------------------------------------------
For the six months ended June 30, 1999, the following Basic Fees, Portfolio
Management Fees and Performance Fees were calculated based on the average daily
net assets of the Funds:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PORTFOLIO
BASIC MANAGEMENT PERFORMANCE TOTAL
FUND QUARTER FEE FEE FEE FEE
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Growth First 0.10% - 0.15% 0.25%
Second 0.10% - 0.22% 0.32%
Value First 0.10% - 0.20% 0.30%
Second 0.10% - 0.22% 0.32%
Small to Mid Cap First - - 0.42% 0.42%
Second - - 0.42% 0.42%
International First 0.20% - 0.40% 0.60%
Equity Second 0.20% - 0.40% 0.60%
Intermediate First 0.02% 0.02% - 0.04%
Fixed-Income Second 0.02% 0.02% - 0.04%
Short-int First 0.02% 0.02% - 0.04%
Fixed-Income Second 0.02% 0.02% - 0.04%
Mortgage First 0.07% - 0.16% 0.23%
Securities Second 0.07% - 0.16% 0.23%
</TABLE>
- --------------------------------------------------------------------------------
* Accessor Capital directly manages the assets of the U.S. Government Money
Fund, therefore there is no Money Manager Fee associated with these Funds.
- --------------------------------------------------------------------------------
- - DISTRIBUTION AND SHAREHOLDER SERVICE PLANS
Accessor Funds has adopted a Distribution Plan under Rule 12b-1 of the
Investment Company Act of 1940 with respect to the Investor Class Shares of each
Fund to reimburse third party intermediaries or other service organizations each
month for distribution-related expenses incurred. Under the terms of the
Distribution Plan, Accessor Funds will reimburse third party selling and
distribution agents responsible for sales and promotional efforts including
printing of prospectuses and reports used for sales purposes. Accessor Funds has
adopted a Shareholder Service Plan with respect to the Investor Class Shares of
each Fund to reimburse third party service organizations who provide account
maintenance services.
The maximum amount payable to service organizations under the Distribution
Plan and Shareholder Service Plan, in aggregate, may not exceed on an annual
basis 0.25% of the average daily net assets of each Fund attributable to
Investor Class Shares.
- - ADMINISTRATIVE SERVICES PLAN
Accessor Funds has adopted an Administrative Service Plan with respect to the
Investor Class Shares of each Fund to reimburse third party service
organizations who provide administrative and support services. The maximum
amount payable to service organizations under the Administrative Services Plan
for these expenses on an annual basis is 0.25% of the average daily net assets
of each Fund attributable to Investor Class Shares, provided, however, that no
Fund shall directly or indirectly pay any distribution related amounts that will
be allocated under Accessor Funds' Distribution Plan.
- --------------------------------------------------------------------------------
accessor 45
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
- --------------------------------------------------------------------------------
TRANSFER AGENT AND ADMINISTRATION
Accessor Funds has a Transfer Agency and Administrative Agreement with Accessor
Capital. Pursuant to this agreement, Accessor Capital acts as transfer agent and
administrator to Accessor Funds, performing all transfer agent and certain
compliance services. The fees are computed at the annual rate of 0.13% expressed
as a percentage of the average daily net assets, per Fund.
- --------------------------------------------------------------------------------
4. SHARES OF STOCK
- ------------------------
Accessor Funds, 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 Funds were as follows:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
ADVISOR CLASS INVESTOR CLASS
---------------------------------------------------------------------------
FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------------------------------------------
GROWTH
<S> <C> <C> <C> <C>
SIX MONTHS ENDED JUNE 30, 1999
Shares subscribed 4,557,003 $ 139,553,247 361,350 $ 10,979,792
Shares issued on reinvestment of distributions 28,620 904,586 4,313 135,612
Shares redeemed (1,177,927) (36,098,014) (123,774) (3,676,884)
------------- ------------- ------------- -------------
Net increase (decrease) 3,407,969 $ 104,359,819 241,889 $ 7,438,520
YEAR ENDED DECEMBER 31, 1998
Shares subscribed 3,402,974 $ 85,951,964 732,542 $ 19,228,688
Shares issued on reinvestment of distributions 321,041 9,129,445 47,659 1,374,493
Shares redeemed (2,335,317) (59,072,350) (14,140) (367,222)
------------- ------------- ------------- -------------
Net increase (decrease) 1,388,698 $ 36,009,059 766,061 $ 20,235,959
- ------------------------------------------------------------------------------------------------------------------------------------
VALUE
SIX MONTHS ENDED JUNE 30, 1999
Shares subscribed 1,698,788 $ 37,939,625 306,422 $ 6.978.083
Shares issued on reinvestment of distributions 8,675 207,179 460 10,948
Shares redeemed (835,183) (18,571,150) (82,735) (1,753,674)
------------- ------------- ------------- -------------
Net increase (decrease) 872,280 $ 19,575,654 224,147 $ 5,235,357
YEAR ENDED DECEMBER 31, 1998
Shares subscribed 3,235,994 $ 71,808,692 575,624 $ 13,165,333
Shares issued on reinvestment of distributions 351,229 7,460,324 50,458 1,059,379
Shares redeemed (2,019,203) (45,293,298) (8,819) (192,755)
------------- ------------- ------------- -------------
Net increase (decrease) 1,568,020 $ 33,975,718 617,263 $ 14,031,957
- ------------------------------------------------------------------------------------------------------------------------------------
SMALL TO MID CAP
SIX MONTHS ENDED JUNE 30, 1999
Shares subscribed 8,383,314 $ 197,792,711 216,563 $ 5,032,000
Shares issued on reinvestment of distributions 53,364 1,352,884 7,053 177,651
Shares redeemed (4,690,483) (110,931,664) (34,062) (800,526)
------------- ------------- ------------- -------------
Net increase (decrease) 3,746,195 $ 88,213,931 189,554 $ 4,409,125
YEAR ENDED DECEMBER 31, 1998
Shares subscribed 9,320,690 $ 210,763,396 787,121 $ 18,833,401
Shares issued on reinvestment of distributions 308,678 7,185,331 53,104 1,237,346
Shares redeemed (4,285,782) (97,340,937) (14,868) (321,893)
------------- ------------- ------------- -------------
Net increase (decrease) 5,343,586 $ 120,607,790 825,357 $ 19,748,854
</TABLE>
- --------------------------------------------------------------------------------
accessor 46
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
ADVISOR CLASS INVESTOR CLASS
---------------------------------------------------------------------------
FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY
<S> <C> <C> <C> <C>
SIX MONTHS ENDED JUNE 30, 1999
Shares subscribed 5,164,435 $ 92,129,874 133,275 $ 2,353,171
Shares issued on reinvestment of distributions 31,954 594,022 7,356 136,093
Shares redeemed (4,343,638) (76,725,560) (139,511) (2,445,475)
------------- ------------- ------------- -------------
Net increase (decrease) 852,751 $ 15,998,336 1,120 $ 43,789
YEAR ENDED DECEMBER 31, 1998
Shares subscribed 6,463,056 $ 106,249,826 1,122,863 $ 19,884,873
Shares issued on reinvestment of distributions 79,349 1,335,439 20,017 336,086
Shares redeemed (7,914,102) (131,480,826) (17,773) (289,637)
------------- ------------- ------------- -------------
Net increase (decrease) (1,371,697) $ (23,895,561) 1,125,107 $ 19,931,322
- ------------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE FIXED-INCOME
SIX MONTHS ENDED JUNE 30, 1999
Shares subscribed 1,323,613 $ 16,049,575 222,398 $ 2,698,312
Shares issued on reinvestment of distributions 38,983 465,455 10,643 126,969
Shares redeemed (965,033) (11,674,228) (148,581) (1,773,548)
------------- ------------- ------------- -------------
Net increase (decrease) 397,563 $ 4,840,802 84,460 $ 1,051,733
YEAR ENDED DECEMBER 31, 1998
Shares subscribed 2,812,050 $ 34,756,600 758,860 $ 9,395,259
Shares issued on reinvestment of distributions 72,912 899,472 7,981 99,444
Shares redeemed (3,524,161) (43,301,432) (33,208) (416,120)
------------- ------------- ------------- -------------
Net increase (decrease) (639,199) ($ 7,645,360) 733,633 $ 9,078,583
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT-INTERMEDIATE FIXED-INCOME
SIX MONTHS ENDED JUNE 30, 1999
Shares subscribed 872,826 $ 10,653,536 92,399 $ 1,130,317
Shares issued on reinvestment of distributions 19,258 233,844 1,628 19,716
Shares redeemed (271,306) (3,309,358) (42,412) (515,778)
------------- ------------- ------------- -------------
Net increase (decrease) 620,778 $ 7,578,022 51,615 $ 634,255
YEAR ENDED DECEMBER 31, 1998
Shares subscribed 1,468,493 $ 18,169,344 506,360 $ 6,319,206
Shares issued on reinvestment of distributions 49,077 600,883 5,534 68,254
Shares redeemed (1,410,917) (17,537,006) (4,397) (55,000)
------------- ------------- ------------- -------------
Net increase (decrease) 106,653 $ 1,233,221 507,497 $ 6,332,460
- ------------------------------------------------------------------------------------------------------------------------------------
MORTGAGE SECURITIES
SIX MONTHS ENDED JUNE 30, 1999
Shares subscribed 2,755,441 $ 34,414,260 340,130 $ 4,229,061
Shares issued on reinvestment of distributions 70,553 875,386 6,564 80,758
Shares redeemed (833,414) (10,425,368) (29,220) (364,994)
------------- ------------- ------------- -------------
Net increase (decrease) 1,992,580 $ 24,864,278 317,474 $ 3,944,825
YEAR ENDED DECEMBER 31, 1998
Shares subscribed 4,501,044 $ 57,136,825 1,378,173 $ 17,475,347
Shares issued on reinvestment of distributions 127,522 1,611,774 9,003 113,365
Shares redeemed (3,112,328) (39,481,462) (7,688) (97,608)
------------- ------------- ------------- -------------
Net increase (decrease) 1,516,238 $ 19,267,137 1,379,488 $ 17,491,104
</TABLE>
- --------------------------------------------------------------------------------
accessor 47
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
ADVISOR CLASS INVESTOR CLASS
---------------------------------------------------------------------------
FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT MONEY
SIX MONTHS ENDED JUNE 30, 1999
Shares subscribed 300,571,979 $ 300,571,979 3,258,034 $ 3,258,034
Shares issued on reinvestment of distributions 105,197 105,197 1,417 1,417
Shares redeemed (156,359,217) (156,359,217) (1,606,271) (1,606,271)
------------- ------------- ------------- -------------
Net increase (decrease) 144,317,959 $ 144,317,959 1,653,180 $ 1,653,180
YEAR ENDED DECEMBER 31, 1998
Shares subscribed 268,676,066 $ 268,676,067 7,450,226 $ 7,450,226
Shares issued on reinvestment of distributions 151,613 151,613 247 247
Shares redeemed (166,592,141) (166,592,141) (2,379,426) (2,379,426)
------------- ------------- ------------- -------------
Net increase (decrease) 102,235,538 $ 102,235,539 5,071,047 $ 5,071,047
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
5. SECURITIES TRANSACTIONS
- -----------------------------------
During the six months ended June 30, 1999, purchases and sales of investments,
other than short-term investments and government securities aggregated, were
as follows:
<TABLE>
<CAPTION>
-------------------------------------------------------------------------
FUND PURCHASES SALES
-------------------------------------------------------------------------
<S> <C> <C>
Growth $ 215,473,751 $ 114,291,814
Value 118,290,961 96,122,222
Small to Mid Cap 278,360,788 202,031,410
International Equity 227,734,350 214,146,422
Intermediate Fixed-Income 18,061,161 10,637,767
Short-Intermediate Fixed-Income 8,997,292 5,697,325
Mortgage Securities 11,897,741 23,775,011
-------------------------------------------------------------------------
</TABLE>
During the six months ended June 30, 1999, purchases and sales of long-term U.S.
Government Securities, were as follows:
<TABLE>
<CAPTION>
-------------------------------------------------------------------------
FUND PURCHASES SALES
-------------------------------------------------------------------------
<S> <C> <C>
Intermediate Fixed-Income $ 5,946,078 $ 7,327,732
Short-Intermediate Fixed-Income 5,103,006 2,118,317
Mortgage Securities 142,046,855 110,214,911
-------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
accessor 48
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
GROWTH FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
ADVISOR CLASS SHARES 1999(1) 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 28.88 $ 21.57 $ 19.51 $ 17.99 $ 14.37 $ 14.16
Net investment income (loss) (0.02) 0.04 0.13 0.19 0.15 0.13
Net realized and unrealized gain
on investments 2.87 9.91 6.31 3.35 4.76 0.42
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 2.85 9.95 6.44 3.54 4.91 0.55
- ------------------------------------------------------------------------------------------------------------------------------
Distributions from net investment income 0.00 (0.03) (0.13) (0.19) (0.15) (0.13)
Distributions from capital gains (0.14) (2.61) (4.25) (1.83) (1.14) (0.21)
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.14) (2.64) (4.38) (2.02) (1.29) (0.34)
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, end of period $ 31.59 $ 28.88 $ 21.57 $ 19.51 $ 17.99 $ 14.37
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Total return(3) 9.89% 46.65% 33.24% 19.83% 34.32% 3.99%
Net assets, end of period (in thousands) $ 280,245 $ 157,799 $ 87,907 $ 60,586 $ 48,532 $ 23,534
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
After Accessor capital fee waivers 0.94%* 0.92% 0.93% 1.13% 1.26% 1.76%
Before Accessor capital fee waivers 0.94%* 0.92% 0.93% 1.13% 1.26% 1.83%
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
After Accessor capital fee waivers (0.16)%* 0.16% 0.56% 0.97% 0.97% 1.02%
Before Accessor capital fee waivers (0.16)%* 0.16% 0.56% 0.97% 0.97% 0.95%
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 47.05% 112.42% 131.75% 81.79% 99.73% 57.71%
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS SHARES(2) 1999(1) 1998
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, beginning of period $ 28.82 $ 26.38
Net investment income (loss) (0.11) (0.05)
Net realized and unrealized
gain on investments 2.87 4.52
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 2.76 4.47
- ------------------------------------------------------------------------------------------------------------------------------
Distributions from net investment income 0.00 0.00
Distributions from capital gains (0.14) (2.03)
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.14) (2.03)
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, end of period $ 31.44 $ 28.82
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Total return(3) 9.59% 16.96%
Net assets, end of period (in thousands) $ 31,691 $ 22,077
Ratio of expenses to average net assets 1.44%* 1.41%*
Ratio of net investment income (loss)
to average net assets (0.66)%* (0.40)%*
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 47.05% 112.42 %
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) For the six months ended on June 30, 1999.
(2) Class commenced operations July 1, 1998.
(3) Total return is calculated assuming a purchase of shares at net asset value
per share on the first day and a sale at net asset value per share on the last
day of each period reported. Distributions as assumed, for purposes of this
calculation, to be reinvested at the net asset value per share on the respective
payment dates of each class.
*Annualized
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
accessor 49
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
VALUE FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
ADVISOR CLASS SHARES 1999(1) 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 21.04 $ 20.88 $ 17.75 $ 15.91 $ 13.01 $ 13.58
Net investment income 0.06 0.24 0.26 0.24 0.33 0.25
Net realized and unrealized gain
(loss) on investments 2.79 2.45 5.54 3.51 3.96 (0.51)
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 2.85 2.69 5.80 3.75 4.29 (0.26)
- ------------------------------------------------------------------------------------------------------------------------------
Distributions from net investment income (0.06) (0.24) (0.26) (0.24) (0.33) (0.25)
Distributions from capital gains (0.02) (2.29) (2.41) (1.67) (1.06) (0.05)
Distributions in excess of capital gains 0.00 0.00 0.00 0.00 0.00 (0.01)
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.08) (2.53) (2.67) (1.91) (1.39) (0.31)
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, end of period $ 23.81 $ 21.04 $ 20.88 $ 17.75 $ 15.91 $ 13.01
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Total return(3) 13.54% 12.89% 32.94% 23.94% 33.25% (1.93)%
Net assets, end of period (in thousands) $ 150,595 $ 114,728 $ 81,127 $ 36,367 $ 24,915 $ 19,999
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
After Accessor capital fee waivers 1.07%* 1.03% 1.05% 1.21% 1.40% 1.77%
Before Accessor capital fee waivers 1.07%* 1.03% 1.05% 1.21% 1.40% 1.85%
RATIO OF NET INVESTMENT INCOME
TO AVERAGE NET ASSETS:
After Accessor capital fee waivers 0.65%* 1.06% 1.32% 1.43% 2.18% 2.00%
Before Accessor capital fee waivers 0.65%* 1.06% 1.32% 1.43% 2.18% 1.92%
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 69.41% 104.85% 68.14% 93.54% 100.88% 54.26%
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS SHARES(2) 1999(1) 1998
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, beginning of period $ 21.04 $ 23.41
Net investment income 0.01 0.05
Net realized and unrealized gain
(loss) on investments 2.79 (0.31)
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 2.80 (0.26)
- ------------------------------------------------------------------------------------------------------------------------------
Distributions from net investment income (0.01) (0.06)
Distributions from capital gains (0.02) (2.05)
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.03) (2.11)
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, end of period $ 23.81 $ 21.04
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Total return(3) 13.27% (1.09)%
Net assets, end of period (in thousands) $ 20,036 $ 12,987
Ratio of expenses to average net assets 1.57%* 1.55%*
Ratio of net investment income
to average net assets 0.15%* 0.44%*
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 69.41% 104.85%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) For the six months ended on June 30, 1999.
(2) Class commenced operations July 1, 1998.
(3) Total return is calculated assuming a purchase of shares at net asset value
per share on the first day and a sale at net asset value per share on the last
day of each period reported. Distributions as assumed, for purposes of this
calculation, to be reinvested at the net asset value per share on the respective
payment dates of each class.
*Annualized
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
accessor 50
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
VALUE FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
ADVISOR CLASS SHARES 1999(1) 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 23.53 $ 21.82 $ 18.82 $ 17.60 $ 14.08 $ 14.79
Net investment income (loss) (0.06) (0.05) 0.00 0.07 0.06 (0.01)
Net realized and unrealized gain
(loss) on investments 2.04 3.50 6.75 4.22 4.42 (0.59)
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.98 3.45 6.75 4.29 4.48 (0.60)
- ------------------------------------------------------------------------------------------------------------------------------
Distributions from net investment income 0.00 0.00 0.00 (0.07) (0.06) 0.00
Distributions from capital gains (0.19) (1.74) (3.73) (3.00) (0.90) (0.10)
Distribution in excess of net
investment income 0.00 0.00 (0.02) 0.00 0.00 0.00
Return of capital distributions 0.00 0.00 0.00 0.00 0.00 (0.01)
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.19) (1.74) (3.75) (3.07) (0.96) (0.11)
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, end of period $ 25.32 $ 23.53 $ 21.82 $ 18.82 $ 17.60 $ 14.08
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Total return(3) 8.40% 15.98% 36.14% 24.85% 31.98% (4.07)%
Net assets, end of period (in thousands) $ 375,520 $ 260,792 $ 125,221 $ 65,479 $ 49,803 $ 24,148
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
After Accessor capital fee waivers 1.35%* 1.22% 1.15% 1.17% 1.31% 1.98%
Before Accessor capital fee waivers 1.35%* 1.22% 1.15% 1.17% 1.31% 2.38%
RATIO OF NET INVESTMENT INCOME
TO AVERAGE NET ASSETS:
After Accessor capital fee waivers (0.61)%* (0.22)% 0.00% 0.37% 0.41% (0.18)%
Before Accessor capital fee waivers (0.61)%* (0.22)% 0.00% 0.37% 0.41% (0.58)%
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 63.24% 110.07% 129.98% 113.44% 84.26% 30.14%
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS SHARES(2) 1999(1) 1998
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, beginning of period $ 23.47 $ 24.44
Net investment income (loss) 0.00 (0.09)
Net realized and unrealized gain
(loss) on investments 1.91 0.86
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.91 0.77
- ------------------------------------------------------------------------------------------------------------------------------
Distributions from net investment income 0.00 0.00
Distributions from capital gains (0.19) (1.74)
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.19) (1.74)
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, end of period $ 25.19 $ 23.47
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Total return(3) 8.12% 3.32%
Net assets, end of period (in thousands) $ 25,571 $ 19,367
Ratio of expenses to average net assets 1.85%* 1.77%*
Ratio of net investment income
to average net assets (1.11)%* (0.84)%*
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 63.24% 110.07%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) For the six months ended on June 30, 1999.
(2) Class commenced operations June 24, 1998.
(3) Total return is calculated assuming a purchase of shares at net asset value
per share on the first day and a sale at net asset value per share on the last
day of each period reported. Distributions are assumed, for purposes of this
calculation, to be reinvested at the net asset value per share on the respective
payment dates of each class.
*Annualized
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
accessor 51
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
ADVISOR CLASS SHARES 1999(1) 1998 1997 1996 1995 1994(4)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 16.90 $ 14.83 $ 13.83 $ 12.55 $ 11.67 $ 12.00
Net investment income (loss) 0.06 (0.03) (0.02) (0.06) 0.05 0.01
Net realized and unrealized gain
(loss) on investments 1.76 2.41 1.54 1.80 0.83 (0.34)
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.82 2.38 1.52 1.74 0.88 (0.33)
- ------------------------------------------------------------------------------------------------------------------------------
Distributions from capital gains (0.13) (0.31) (0.50) (0.44) 0.00 0.00
Distributions in excess of capital gains 0.00 0.00 (0.02) (0.02) 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.13) (0.31) (0.52) (0.46) 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, end of period $ 18.59 $ 16.90 $ 14.83 $ 13.83 $ 12.55 $ 11.67
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Total return(3) 10.75% 16.07% 10.96% 13.78% 7.63% (2.75)%
Net assets, end of period (in thousands) $ 180,256 $ 149,391 $ 151,441 $ 73,019 $ 39,102 $ 7,566
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
After Accessor capital fee waivers 1.44%* 1.59% 1.55% 1.52% 1.83% 1.86%*
Before Accessor capital fee waivers 1.44%* 1.59% 1.55% 1.52% 1.93% 4.06%*
RATIO OF NET INVESTMENT INCOME
(LOSS) TO AVERAGE NET ASSETS:
After Accessor capital fee waivers 0.63%* (0.24)% (0.20)% (0.26)% 0.10% 0.38%*
Before Accessor capital fee waivers 0.63%* (0.24)% (0.20)% (0.26)% 0.00% (1.82)%*
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 122.44% 196.37% 196.66% 157.66% 84.85% 0.82%
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS SHARES(2) 1999(1) 1998
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, beginning of period $ 16.85 $ 17.88
Net investment income (loss) 0.02 (0.06)
Net realized and unrealized gain
(loss) on investments 1.76 (0.66)
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.78 (0.72)
- ------------------------------------------------------------------------------------------------------------------------------
Distributions from capital gains (0.13) (0.31)
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.13) (0.31)
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, end of period $ 18.50 $ 16.85
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Total return(3) 10.54% (4.01)%
Net assets, end of period (in thousands) $ 20,835 $ 18,963
Ratio of expenses to average net assets 1.94%* 2.05%*
Ratio of net investment income (loss)
to average net assets 0.13%* (0.68)%*
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 122.44% 196.37%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) For the six months ended on June 30, 1999.
(2) Class commenced operations July 6, 1998.
(3) Total return is calculated assuming a purchase of shares at net asset value
per share on the first day and a sale at net asset value per share on the last
day of each period reported. Distributions as assumed, for purposes of this
calculation, to be reinvested at the net asset value per share on the respective
payment dates of each class.
(4) For the period of October 3, 1994 (commencement of operations) through
December 31, 1994.
*Annualized
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
accessor 52
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INTERMEDIATE FIXED-INCOME FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
ADVISOR CLASS SHARES 1999(1) 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 12.47 $ 12.19 $ 11.90 $ 12.29 $ 11.04 $ 12.34
Net investment income 0.32 0.67 0.71 0.67 0.71 0.65
Net realized and unrealized gain
(loss) on investments (0.76) 0.32 0.29 (0.39) 1.25 (1.28)
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (0.44) 0.99 1.00 0.28 1.96 (0.63)
- ------------------------------------------------------------------------------------------------------------------------------
Distributions from net investment income (0.32) (0.67) (0.71) (0.67) (0.71) (0.65)
Distributions from capital gains (0.05) (0.04) 0.00 0.00 0.00 (0.02)
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.37) (0.71) (0.71) (0.67) (0.71) (0.67)
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, end of period $ 11.66 $ 12.47 $ 12.19 $ 11.90 $ 12.29 $ 11.04
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Total return(3) (3.55)% 8.38% 8.62% 2.56% 18.26% (5.24)%
Net assets, end of period (in thousands) $ 49,990 $ 48,489 $ 55,197 $ 52,248 $ 36,878 $ 31,405
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
After Accessor Capital fee waivers 0.87%* 0.79% 0.84% 0.88% 0.96% 1.24%
Before Accessor Capital fee waivers 0.87%* 0.79% 0.84% 0.88% 0.96% 1.28%
RATIO OF NET INVESTMENT INCOME
TO AVERAGE NET ASSETS:
After Accessor capital fee waivers 5.33%* 5.46% 5.88% 5.79% 6.07% 5.65%
Before Accessor capital fee waivers 5.33%* 5.46% 5.88% 5.79% 6.07% 5.61%
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 31.16% 113.00% 84.35% 94.69% 187.62% 255.11%
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS SHARES(2) 1999(1) 1998
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, beginning of period $ 12.47 $ 12.29
Net investment income 0.29 0.28
Net realized and unrealized gain
(loss) on investments (0.76) 0.24
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (0.47) 0.52
- ------------------------------------------------------------------------------------------------------------------------------
Distributions from net investment income (0.29) (0.30)
Distributions from capital gains (0.05) (0.04)
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.34) (0.34)
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, end of period $ 11.66 $ 12.47
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Total return(3) (3.79)% 4.29%
Net assets, end of period (in thousands) $ 9,540 $ 9,146
Ratio of expenses to average net assets 1.37%* 1.27%*
Ratio of net investment income
to average net assets 4.83%* 4.75%*
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 31.16% 113.00%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) For the six months ended on June 30, 1999.
(2) Class commenced operation July 14, 1998.
(3) Total return is calculated assuming a purchase of shares at net asset value
per share on the first day and a sale at net asset value per share on the last
day of each period reported. Distributions are assumed, for purposes of this
calculation, to be reinvested at the net asset value per share on the respective
payment dates of each class.
*Annualized
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
accessor 53
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SHORT-INTERMEDIATE FIXED-INCOME FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
ADVISOR CLASS SHARES 1999(1) 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 12.33 $ 12.27 $ 12.16 $ 12.32 $ 11.62 $ 12.29
Net investment income 0.32 0.68 0.64 0.59 0.60 0.50
Net realized and unrealized gain
(loss) on investments (0.33) 0.14 0.11 (0.16) 0.70 (0.67)
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (0.01) 0.82 0.75 0.43 1.30 (0.17)
- ------------------------------------------------------------------------------------------------------------------------------
Distributions from net investment income (0.32) (0.63) (0.64) (0.59) (0.60) (0.50)
Distributions from capital gains (0.01) (0.13) 0.00 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.33) (0.76) (0.64) (0.59) (0.60) (0.50)
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, end of period $ 11.99 $ 12.33 $ 12.27 $ 12.16 $ 12.32 $ 11.62
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Total return(3) (0.11)% 6.87% 6.33% 3.63% 11.42% (1.42)%
Net assets, end of period (in thousands) $ 48,756 $ 42,454 $ 40,942 $ 36,701 $ 35,272 $ 32,233
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
After Accessor capital fee waivers 0.82%* 0.82% 0.86% 0.93% 0.94% 1.18%
Before Accessor capital fee waivers 0.82%* 0.82% 0.86% 0.93% 0.94% 1.22%
RATIO OF NET INVESTMENT INCOME
TO AVERAGE NET ASSETS:
After Accessor capital fee waivers 5.21%* 5.12% 5.20% 4.89% 4.99% 4.17%
Before Accessor capital fee waivers 5.21%* 5.12% 5.20% 4.89% 4.99% 4.13%
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 15.44% 69.64% 53.30% 31.12% 41.93% 36.54%
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS SHARES(2) 1999(1) 1998
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, beginning of period $ 12.33 $ 12.32
Net investment income 0.29 0.27
Net realized and unrealized gain
(loss) on investments (0.33) 0.17
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (0.04) 0.44
- ------------------------------------------------------------------------------------------------------------------------------
Distributions from net investment income (0.29) (0.30)
Distributions from capital gains (0.01) (0.13)
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.30) (0.43)
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, end of period $ 11.99 $ 12.33
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Total return(3) (0.36)% 3.55%
Net assets, end of period (in thousands) $ 6,706 $ 6,255
Ratio of expenses to average net assets 1.32%* 1.31%*
Ratio of net investment income
to average net assets 4.71%* 4.57%*
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 15.44% 69.64%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) For the six months ended on June 30, 1999.
(2) Class commenced operations July 14, 1998.
(3) Total return is calculated assuming a purchase of shares at net asset value
per share on the first day and a sale at net asset value per share on the last
day of each period reported. Distributions are assumed, for purposes of this
calculation, to be reinvested at the net asset value per share on the respective
payment dates of each class.
*Annualized
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
accessor 54
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
MORTGAGE SECURITIES
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
ADVISOR CLASS SHARES 1999(1) 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 12.59 $ 12.60 $ 12.23 $ 12.38 $ 11.36 $ 12.17
Net investment income 0.35 0.70 0.72 0.73 0.76 0.60
Net realized and unrealized gain
(loss) on investments (0.33) 0.09 0.42 (0.15) 1.02 (0.80)
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 0.02 0.79 1.14 0.58 1.78 (0.20)
- ------------------------------------------------------------------------------------------------------------------------------
Distributions from net investment income (0.35) (0.70) (0.72) (0.73) (0.76) (0.60)
Distributions from capital gains (0.03) (0.10) (0.05) 0.00 0.00 (0.01)
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.38) (0.80) (0.77) (0.73) (0.76) (0.61)
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, end of period $ 12.23 $ 12.59 $ 12.60 $ 12.23 $ 12.38 $ 11.36
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Total return(3) 0.11 6.43 9.53 4.95 16.03 (1.65)
Net assets, end of period (in thousands) $ 149,432 $ 128,788 $ 109,747 $ 73,862 $ 49,830 $ 32,975
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
After Accessor capital fee waivers 1.02%* 0.88% 0.84% 0.95% 1.03% 1.31%
Before Accessor capital fee waivers 1.02%* 0.88% 0.84% 0.95% 1.03% 1.35%
RATIO OF NET INVESTMENT INCOME
TO AVERAGE NET ASSETS:
After Accessor capital fee waivers 5.59%* 5.59% 5.93% 6.08% 6.41% 5.18%
Before Accessor capital fee waivers 5.59%* 5.59% 5.93% 6.08% 6.41% 5.14%
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 91.05% 278.18% 211.66% 356.23% 422.56% 603.51%
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS SHARES(2) 1999(1) 1998
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, beginning of period $ 12.59 $ 12.67
Net investment income 0.32 0.31
Net realized and unrealized gain
(loss) on investments (0.33) 0.01
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (0.01) 0.32
- ------------------------------------------------------------------------------------------------------------------------------
Distributions from net investment income (0.32) (0.33)
Distributions from capital gains (0.03) (0.07)
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.35) (0.40)
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, end of period $ 12.23 $ 12.59
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Total return(3) (0.13)% 2.46%
Net assets, end of period (in thousands) $ 20,749 $ 17,369
Ratio of expenses to average net assets 1.52%* 1.41%*
Ratio of net investment income
to average net assets 5.09%* 5.09%*
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 91.05% 278.18%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) For the six months ended on June 30, 1999.
(2) Class commenced operation July 10, 1998.
(3) Total return is calculated assuming a purchase of shares at net asset value
per share on the first day and a sale at net asset value per share on the last
day of each period reported. Distributions are assumed, for purposes of this
calculation, to be reinvested at the net asset value per share on the respective
payment dates of each class.
*Annualized
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
accessor 55
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
ADVISOR CLASS SHARES 1999(1) 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net investment income 0.02 0.05 0.05 0.05 0.05 0.04
Distributions from net investment income (0.02) (0.05) (0.05) (0.05) (0.05) (0.04)
Net Asset Value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Total return(3) 2.21% 5.00% 5.07% 4.78% 5.33% 3.70%
Net assets, end of period (in thousands) $ 297,465 $ 153,148 $ 50,910 $ 61,672 $ 41,882 $ 12,008
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
After Accessor capital fee waivers 0.47%* 0.53% 0.54% 0.59% 0.53% 0.45%
Before Accessor capital fee waivers 0.47%* 0.53% 0.54% 0.59% 0.78% 1.27%
RATIO OF NET INVESTMENT INCOME
TO AVERAGE NET ASSETS:
After Accessor capital fee waivers 4.36%* 4.83% 4.96% 4.73% 5.14% 3.51%
Before Accessor capital fee waivers 4.36%* 4.83% 4.96% 4.73% 4.89% 2.69%
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS SHARES(2) 1999(1) 1998
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, beginning of period $ 1.00 $ 1.00
Net investment income 0.02 0.02
Distributions from net investment income (0.02) (0.02)
Net Asset Value, end of period $ 1.00 $ 1.00
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Total return(3) 1.96% 1.83%
Net assets, end of period (in thousands) $ 6,724 $ 5,071
Ratio of expenses to average net assets: 0.97%* 1.03%*
Ratio of net investment income
to average net assets 3.86%* 4.40%*
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) For the six months ended on June 30, 1999.
(2) Class commenced operations July 29, 1998.
(3) Total return is calculated assuming a purchase of shares at net asset value
per share on the first day and a sale at net asset value per share on the last
day of each period reported. Distributions are assumed, for purposes of this
calculation, to be reinvested at the net asset value per share on the respective
payment dates of each class.
*Annualized
PLEASE SEE "NOTES TO FINANCIAL STATEMENTS" FOR FURTHER INFORMATION.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
accessor 56
<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
Christine J. Stansbery, Secretary
Linda V. Whatley, Vice President
INVESTMENT ADVISOR AND ADMINISTRATOR
Accessor Capital Management LP
1420 Fifth Avenue, Suite 3600
Seattle, Washington 98101
CUSTODIAN
The Fifth Third Bank
Fifth Third Center
38 Fountain Square Plaza
Cincinnati, Ohio 45263
TRANSFER AGENT
Accessor Capital Management
P.O. Box 1748
Seattle, Washington 98111
LEGAL COUNSEL
Kirkpatrick & Lockhart
One International Place
13th Floor
Boston, Massachusetts 02110
INDEPENDENT AUDITORS
Deliotte & Touche LLP
Two 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 share of Accessor Funds, Inc., or any securities mentioned in
this report.
www.accessor.com
