[Graphic Omitted]
[cra logo omitted]
--------------------------------------------------------------------------------
REALTY
--------------------------------------------------------------------------------
SHARES
--------------------------------------------------------------------------------
PORTFOLIO
--------------------------------------------------------------------------------
ANNUAL REPORT
TO SHAREHOLDERS
OCTOBER 31, 2000
ADVISED BY:
CLARION [bullet] CRA
SECURITIES
<PAGE>
<PAGE>
[CRA logo omitted]
--------------------------------------------------------------------------------
REALTY
--------------------------------------------------------------------------------
SHARES
--------------------------------------------------------------------------------
PORTFOLIO
MANAGER'S DISCUSSION OF FUND PERFORMANCE
Letter to Our Shareholders:
We present our report for the CRA Realty Shares Portfolio for the twelve-month
period ended October 31, 2000.
PORTFOLIO REVIEW:
Over the last twelve months the portfolio's performance is up 23.78%,
significantly exceeding the performance of the broad market stock and bond
indices. As shown in the table below, the portfolio has consistently
outperformed the two major real estate indices since inception.
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
2000 3 Years Since Inception*
YTD One-Year (annualized) (annualized)
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CRA Realty Shares Portfolio 20.36% 23.78% 0.77% 5.07%
Wilshire RE. Securities 19.55 22.10 (0.11) 3.59
NAREIT - Equity REITs 16.56 18.29 (1.38) 2.59
S&P 500 (Lg. Co. Stocks) (1.81) 6.09 17.60 20.41
Russell 2000 (Sm. Co. Stocks) (0.48) 17.40 5.93 9.94
Lehman Gov't./Corp. Bonds 7.83 7.11 5.47 6.38
----------------------------------------------------------------------------------------------------------------------------
<FN>
*INCEPTION DATE: 1/1/97
</FN>
</TABLE>
COMMENTARY:
ECONOMY, ECONOMY, ECONOMY! October blew chill winds through the equity markets
as a host of concerns shook investors' confidence. In this traditionally
volatile month for the stock market, prices declined as investors climbed a wall
of worry about a possible economic slowdown, the outcome of the U.S. elections,
rising oil prices, the outbreak of fighting in the Middle East, and the
fluctuations in world currency markets. No prisoners were taken as all the major
stock indices fell in October, including the REITs. The old cliche goes that the
key attribute for successful investing in real estate is "location, location,
location." With all due deference to the importance of location, today's most
important variable affecting real estate returns and values is the economy. The
ugly stock market in October was due to an increasing body of data suggesting
that the U.S. economy is slowing down ... and possibly much faster than
consensus had expected.
IS THE WORRY FOR REAL? A noted economist once wrote that "the market has
predicted seven of the last three recessions." Is the market once again
overreacting and beginning to price a recession when none exists? Consensus has
been that the economy is slowing from this year's 5% rate to 3% - 4% next year.
Now many observers are mentioning the "R" word (recession) and predicting that
the possibility of a hard landing is much increased. We admit to some degree of
concern ourselves. Whether or not the economy merely slows its rate of growth or
actually declines will become more fully apparent over the next few months. In
either event, a more defensive portfolio strategy, which de-emphasizes those
property sectors most sensitive to changes in the economy, is advisable.
OUTLOOK:
REITS ARE STILL LIKELY TO BE GOOD RELATIVE PERFORMERS IN ANY EVENT. One positive
of the increased worry about factors shaping the future direction of the economy
is that investors are beginning to factor risk into their equity valuations.
Volatility in the markets has led investors to revise their total return
expectations down and is bringing new appreciation for dividends. The good news
is that we are collecting a 7.5% dividend now which should grow 5% - 6% next
year. These dividends, on average, represent only a 65% payout of cash earnings,
providing a meaningful cushion against the effects of an economic slowdown.
While it would be disingenuous to argue that a slowdown in the economy is a
positive for real estate, it may not be as negative as times past. Vacancies are
now at some of the lowest levels seen in ten years. New construction levels have
been moderating. The larger presence of public markets for both real estate debt
and equity has proved to be influential in moderating the industry's cyclical
swings.
CLARION CRA SECURITIES, L.P.
--------------------------------------------------------------------------------
AN AFFILIATE OF CLARION PARTNERS
<PAGE>
VALUATIONS ARE MODEST AND EARNINGS ARE STILL MEETING OR BEATING EXPECTATIONS.
The good news is that the average company trades at less than nine times forward
earnings and trades at a 17% discount to our estimate of Net Asset Value (NAV)
per share.
SHARE PRICE PREMIUM TO ESTIMATE
[Chart graphic omitted]
Plot points are as follows:
Jan-91 -35%
Jan-91/Jan-92 -6%
Jan-93 18%
Jan-95 -8%
Jan-98 30%
After Jan-00 -17%
Source: Green Street Advisors, Clarion CRA (through 10/31/00)
The bad news is that multiples will have a hard time lifting until the direction
of the economy's growth becomes more certain and may actually contract again in
a recession scenario. Meanwhile, earnings continue to come in largely as
expected or better. In the second quarter, 67% of companies we follow beat
earnings expectations. More than 90% met or beat estimates. In the third quarter
again, 90%+ of real estate companies met or beat estimates delivering average
growth in earnings of 10%. The number of companies beating estimates was nearly
equal to the number meeting estimates.
COMPARISON OF CHANGE IN THE
VALUE OF A $10,000 INVESTMENT
IN THE CRA REALTY SHARES
PORTFOLIO VERSUS THE WILSHIRE REAL
ESTATE SECURITIES INDEX.
-------------------------------------------
Total Return 1
-------------------------------------------
One Year Annualized Annualized
Return 3 Year Inception to
Return Date
-------------------------------------------
23.78% 0.77% 5.07%
-------------------------------------------
[Chart Graphic Omitted]
Plot points are as follows:
CRA Realty Shares Wilshire Real Estate Securities Index
12/96 $10,000 $10,000
10/97 11,817 11,488
10/98 10,144 9,851
10/99 9,768 9,377
10/00 12,091 11,449
Figures represent the period from December 31, 1996 through October 31, 2000.
1 These figures represent past performance. Past performance is no guarantee of
future results. The investment return and principal value of an investment
will fluctuate, so an investor's shares, when redeemed, may be worth more or
less than their original cost.
CLARION CRA SECURITIES, L.P.
--------------------------------------------------------------------------------
AN AFFILIATE OF CLARION PARTNERS
<PAGE>
STRATEGY:
Our conclusion is that REITs are likely to outperform the market through this
period of heightened anxiety and volatility; however, we need to become more
defensive. Therefore, we have increased exposure to apartments and have pared
exposure to economically sensitive areas like hotels and retail (though we note
the heavily discounted valuations for many retail companies already seem to
anticipate much of the potential bad news). Office and industrial companies with
longer lease terms should hold up, but we are wary of those companies with
significant income from economically sensitive activity like fee development. A
seasoned management team and strong balance sheet have become increasingly
important. This is not a time for cowboys - the risk level for execution
mistakes is increasing.
Throughout the last year, the portfolio's overweighted positions in apartments
and office companies helped performance as these groups performed better than
the Wilshire index. The table below shows the performance by property type for
the last twelve months.
-------------------------------------------
WILSHIRE REAL ESTATE SECURITIES INDEX
PERFORMANCE BY PROPERTY TYPE AS OF 10/31/00
-------------------------------------------
Weight Trailing
Property Type in Index 1 year
-------------------------------------------
Office 17.5% 34.0%
Hotels 11.8 26.5
Diversified 22.0 25.8
Apartments 20.5 25.7
Industrial 5.8 21.3
Malls 8.6 12.8
Mfr. Homes 1.5 12.4
Shopping Centers 8.0 7.5
Storage 3.6 2.7
Outlet Centers 0.7 (24.3)
-------------------------------------------
Total 100.0% 22.1%
-------------------------------------------
We are still optimistic about the total return prospects for an actively
managed, diversified portfolio of real estate securities.
We appreciate your continued confidence in us as your manager.
Sincerely,
CLARION CRA SECURITIES
/s/ signature omitted /s/ signature omitted
T. Ritson Ferguson Kenneth D. Campbell
Co-Portfolio Manager Co-Portfolio Manager
* The performance data quoted herein represents past performance and the return
and value of an investment in the Fund will fluctuate so that shares, when
redeemed, may be worth less than their original cost. This information must be
preceded or accompanied by a current prospectus. Investors should read the
prospectus carefully before investing or sending money. The CRA Realty Shares
Portfolio, a portfolio of The Advisors' Inner Circle Fund, is distributed by
SEI Investments Distributions Co., Oaks, PA 19456.
CLARION CRA SECURITIES, L.P.
--------------------------------------------------------------------------------
AN AFFILIATE OF CLARION PARTNERS
<PAGE>
STATEMENT OF NET ASSETS
October 31, 2000
Market
Value
Shares (000)
--------------------------------------------------------------------------------
EQUITIES (96.0%)
DIVERSIFIED PROPERTY HOLDINGS (1.4%)
Vornado Realty Trust .................... 25,200 $ 877
---------
INDUSTRIAL (6.3%)
AMB Property Corp. ...................... 111,700 2,625
Mission West Properties ................. 48,600 653
Prologis Trust .......................... 38,500 809
---------
4,087
---------
INDUSTRIAL/OFFICE MIX (9.4%)
Duke-Weeks Realty Corporation ........... 129,500 3,068
Liberty Property Trust .................. 114,200 3,019
---------
6,087
---------
OFFICE (41.3%)
Arden Realty Inc. ....................... 96,100 2,306
Boston Properties Inc. .................. 45,500 1,843
Brandywine Realty Trust ................. 96,900 1,853
Brookfield Properties Co. ............... 66,000 1,011
CarrAmerica Realty Corp. ................ 115,500 3,414
Equity Office Properties Trust .......... 157,557 4,746
Highwoods Properties Inc. ............... 114,300 2,472
Kilroy Realty Corp. ..................... 90,200 2,351
Mack-Cali Realty Corp. .................. 17,400 472
Prentiss Properties Trust ............... 122,400 3,106
Spieker Properties Inc. ................. 54,400 3,012
---------
26,586
---------
RESIDENTIAL: APARTMENTS (21.9%)
Apartment Investment &
Management Co., Cl A .................. 60,900 2,782
AvalonBay Communities Inc. .............. 60,168 2,764
BRE Properties, Cl A .................... 78,100 2,470
Camden Property Trust ................... 80,800 2,313
Equity Residential Properties Trust ..... 51,500 2,424
Summit Properties Inc. .................. 56,000 1,344
---------
14,097
---------
RESIDENTIAL: HOTELS (7.7%)
Host Marriott Corp. ..................... 195,800 2,080
Starwood Hotels & Resorts Worldwide Inc. 97,957 2,902
---------
4,982
---------
RETAIL: MALLS (4.6%)
General Growth Properties ............... 41,800 1,233
Simon Property Group Inc. ............... 78,528 1,752
---------
2,985
---------
Shares/ Market
Face Amount Value
(000) (000)
--------------------------------------------------------------------------------
RETAIL: SHOPPING CENTERS (3.4%)
Regency Realty Corp. .................... 98,400 $ 2,214
---------
TOTAL EQUITIES
(Cost $54,076) ........................ 61,915
---------
REPURCHASE AGREEMENT (0.2%)
Morgan Stanley Dean Witter Tri-Party Repo,
6.300%, dated 10/31/00, matures 11/01/00,
repurchase price $106,542 (collateralized
by a U.S. Treasury Instrument, par value
$107,974, 5.375%, matures 02/15/01,
market value $109,192) ................ $ 107 107
---------
TOTAL REPURCHASE AGREEMENT
(Cost $107) ........................... 107
---------
TOTAL INVESTMENTS (96.2%)
(Cost $54,183) ........................ 62,022
---------
OTHER ASSETS AND LIABILITIES, NET (3.8%) 2,425
---------
NET ASSETS:
Portfolio Capital -- Institutional Class
(unlimited authorization -- no par value)
based on 6,733,303 outstanding shares
of beneficial interest ................ 66,956
Distributions in excess of net
investment income ..................... (73)
Accumulated net realized loss
on investments ........................ (10,275)
Net unrealized appreciation
on investments ........................ 7,839
---------
TOTAL NET ASSETS (100.0%) ............... $64,447
=========
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class $9.57
=========
CL - CLASS
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF OPERATIONS (000)
FOR THE
YEAR ENDED
CRA REALTY SHARES PORTFOLIO 10/31/00
--------------------------------------------------------------------------------
Investment Income:
Dividend Income............................................... $ 3,994
Interest Income .............................................. 89
--------------------------------------------------------------------------------
Total Investment Income..................................... 4,083
--------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees ..................................... 425
Investment Advisory Fee Waiver ............................... (31)
Administrative Fees .......................................... 91
Transfer Agent Fees .......................................... 44
Printing Fees ................................................ 35
Registration and Filing Fees ................................. 20
Amortization of Deferred Organizational Costs ................ 5
Professional Fees ............................................ 3
Trustee Fees ................................................. 3
Custodian Fees ............................................... 2
Other Fees.................................................... 10
--------------------------------------------------------------------------------
Total Expenses ............................................. 607
--------------------------------------------------------------------------------
Net Investment Income .................................... 3,476
Net Realized Loss from Securities Sold ....................... (3,612)
Net Unrealized Appreciation of Investment Securities ......... 12,727
--------------------------------------------------------------------------------
Net Realized and Unrealized Gain on Investments ............ 9,115
--------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations.......... $12,591
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
CRA REALTY SHARES PORTFOLIO 10/31/00 10/31/00
----------------------------------------------------------------------------------------------------------------------------------
Investment Activities:
<S> <C> <C>
Net Investment Income.............................................................................. $3,476 $ 3,120
Net Realized Loss on Securities Sold .............................................................. (3,612) (4,360)
Net Change in Unrealized Appreciation (Depreciation) of Investment Securities ..................... 12,727 (1,315)
---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations.................................. 12,591 (2,555)
---------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders:
Net Investment Income ............................................................................. (3,476) (3,120)
In Excess of Net Investment Income ................................................................ (329) (426)
---------------------------------------------------------------------------------------------------------------------------------
Total Distributions ............................................................................. (3,805) (3,546)
---------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares Issued ..................................................................................... 9,051 13,087
Shares Issued in Lieu of Cash Distributions ....................................................... 2,905 2,835
Shares Redeemed ................................................................................... (12,263) (9,470)
---------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets Derived from Capital Share Transactions.......................... (307) 6,452
---------------------------------------------------------------------------------------------------------------------------------
Total Increase in Net Assets .................................................................... 8,479 351
Net Assets:
Beginning of Period ............................................................................... 55,968 55,617
---------------------------------------------------------------------------------------------------------------------------------
End of Period ..................................................................................... $64,447 $55,968
=================================================================================================================================
Shares Issued and Redeemed:
Shares Issued .................................................................................... 1,022 1,441
Shares Issued in Lieu of Cash Distributions ...................................................... 324 319
Shares Redeemed .................................................................................. (1,408) (1,074)
---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Share Transactions ................................................... (62) 686
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout the Period ended October 31,
<TABLE>
<CAPTION>
Net Net
Asset Realized and Distributions Distributions Asset
Value Net Unrealized from Net from Value
Beginning Investment Gain (Loss) on Investment Capital End Total
of Period Income Securities Income Gains of Period Return+
-------- --------- ------------ ---------- ---------- ------- --------
---------------------------
CRA REALTY SHARES PORTFOLIO
---------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
2000 $ 8.24 $0.69 $ 1.21 $(0.57) -- $ 9.57 23.78%
1999 9.10 0.49 (0.80) (0.55) -- 8.24 (3.70)
1998 11.49 0.35 (1.85) (0.40) $(0.49) 9.10 (14.16)
1997 (1) 10.00 0.26 1.53 (0.30) -- 11.49 18.17
</TABLE>
<TABLE>
<CAPTION>
Ratio
of Net
Ratio Ratio Investment
Net of Net of Expenses Income
Assets Ratio Investment to Average to Average
End of Expenses Income Net Assets Net Assets Portfolio
of Period to Average to Average (Excluding (Excluding Turnover
(000) Net Assets Net Assets Waivers) Waivers) Rate
--------- ---------- ---------- ----------- ---------- ---------
---------------------------
CRA REALTY SHARES PORTFOLIO
---------------------------
<S> <C> <C> <C> <C> <C> <C>
2000 $64,447 1.00% 5.71% 1.05% 5.66% 92.99%
1999 55,968 1.00 5.37 1.11 5.26 66.56
1998 55,617 1.00 3.29 1.17 3.12 73.54
1997 (1) 34,797 1.00 2.91 1.63 2.28 102.74
<FN>
+ Return is for the period indicated and has not been annualized.
(1) The CRA Realty Shares Portfolio commenced operations on January 1, 1997. All
ratios for the period have been annualized.
</FN>
</TABLE>
Amounts designated as "--" are either $0 or have been rounded to $0.
<PAGE>
NOTES TO FINANCIAL STATEMENTS CRA REALTY SHARES PORTFOLIO
October 31, 2000
1. ORGANIZATION:
THE ADVISORS' INNER CIRCLE FUND (the "Trust") is organized as a Massachusetts
business trust under an Amended and Restated Agreement and Declaration of Trust
dated February 18, 1997. The Trust is registered under the Investment Company
Act of 1940, as amended, as a diversified open-end management investment company
with ten portfolios. The financial statements herein are those of the CRA Realty
Shares Portfolio (the "Fund"). The financial statements of the remaining
portfolios are not presented herein. The assets of each portfolio are
segregated, and a Shareholder's interest is limited to the portfolio in which
shares are held. The Fund's prospectus provides a description of the Fund's
investment objectives, policies and strategies. The following is a summary of
the significant accounting policies followed by the Fund.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of the significant accounting policies followed by
the Fund.
SECURITY VALUATION -- Investments in equity securities which are traded on a
national exchange (or reported on the NASDAQ national market system) are stated
at the last quoted sales price if readily available for such equity securities
on each business day; other equity securities traded in the over-the-counter
market and listed equity securities for which no sale was reported on that date
are stated at the last quoted bid price. Debt obligations exceeding sixty days
to maturity for which market quotations are readily available are valued at the
most recently quoted bid price. Debt obligations with sixty days or less
remaining until maturity may be valued at their amortized cost, which
approximates market value. Securities for which quotations are not readily
available are valued at fair value using methods determined in good faith by the
Board of Trustees.
FEDERAL INCOME TAXES -- It is the Fund's intention to qualify as a regulated
investment company by complying with the appropriate provisions of the Internal
Revenue Code of 1986, as amended. Accordingly, no provision for Federal income
taxes is required.
SECURITY TRANSACTIONS AND RELATED INCOME -- Security transactions are
accounted for on the date the security is purchased or sold (trade date). Costs
used in determining realized gains and losses on the sales of investment
securities are those of the specific securities sold, adjusted for the accretion
and amortization of purchase discounts or premiums during the respective holding
period which is calculated using the effective interest method. Interest income
is recognized on the accrual basis. Dividend income is recorded on the ex-date.
NET ASSET VALUE PER SHARE -- The net asset value per share of the Fund is
calculated on each business day by dividing the total value of assets, less
liabilities, by the number of shares outstanding.
REPURCHASE AGREEMENTS -- Securities pledged as collateral for repurchase
agreements are held by the custodian bank until the respective agreements
mature. Provisions of the repurchase agreements ensure that the market value of
the collateral, including accrued interest thereon, is sufficient in the event
of default by the counterparty. If the counterparty defaults and the value of
the collateral declines or if the counterparty enters into an insolvency
proceeding, realization of the collateral by the Fund may be delayed or limited.
EXPENSES -- Expenses that are directly related to the Fund are charged to the
Fund. Other operating expenses of the Trust are prorated to the Fund on the
basis of relative daily net assets compared to the aggregate daily net assets of
the Trust.
DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment income
are declared and paid to Shareholders quarterly. Any net realized capital gains
are distributed to Shareholders at least annually.
Distributions from net investment income and net realized capital gains are
determined in accordance with the U.S. Federal income tax regulations, which may
differ from those amounts determined under generally accepted accounting
principles. These book/tax differences are either temporary or permanent in
nature. To the extent these differences are permanent, they are charged or
credited to paid-in-capital in the period that the differences arise.
Accordingly, the CRA Realty Shares Portfolio reclassified $489,392 from
paid-in-capital to undistributed net investment income. These reclassifications
have no effect on net assets or net asset value.
USE OF ESTIMATES -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amount 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.
The majority of the dividend income recorded by the Fund is from Real Estate
Investment Trusts ("REITs"). For tax purposes, a portion of these dividends
consists of capital gains and returns of capital. The Fund's Administrator
estimates the return of capital based upon historical returns of capital paid by
each REIT in prior periods. These estimates are then reconciled to the actual
returns of capital reported by the REITs shortly after calendar year end, and an
adjustment, if any is required, is then recorded by the Fund.
3. ORGANIZATION COSTS AND TRANSACTIONS WITH AFFILIATES:
In April 1998, the AICPA issued Statement of Position "SOP" No. 98-5, "Reporting
on the Costs of Start-Up Activities." The Fund incurred organization costs of
approximately $32,000. These costs have been capitalized by the Fund and are
being amortized over sixty months commencing with the start-up. In the event the
initial shares of the Fund are redeemed by any holder thereof during the period
that the Fund is amortizing its organizational costs, the redemption proceeds
payable to the holder thereof by the Fund will be reduced by the unamortized
organizational costs in the same ratio as the number of initial shares being
redeemed bears to the number of initial shares outstanding at the time of
redemption. These costs include legal fees of approximately $13,000 for
organizational work performed by a law firm of which a trustee of the Trust is a
partner and two officers of the Trust are partners.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
October 31, 2000
Certain officers of the Trust are also officers of SEI Investments Mutual Funds
Services (the "Administrator") and/or SEI Investments Distribution Co. (the
"Distributor"). Such officers are paid no fees by the Trust for serving as
officers of the Trust.
4. ADMINISTRATION, SHAREHOLDER SERVICING AND DISTRIBUTION AGREEMENTS:
The Trust and the Administrator are parties to an Administration Agreement under
which the Administrator provides management and administrative services for an
annual fee equal to the higher of $75,000 or 0.15% of the first $100 million of
the Portfolio's average daily net assets; 0.125% of the next $100 million of the
Portfolio's average daily net assets; 0.10% of the next $100 million of the
Portfolio's average daily net assets; and 0.08% of the Portfolio's average daily
net assets over $300 million.
DST Systems Inc. (the "Transfer Agent") serves as the transfer agent and
dividend disbursing agent for the Fund under a transfer agency agreement with
the Trust.
The Trust and Distributor are parties to a Distribution Agreement. The
Distributor receives no fees for its distribution services under this agreement.
5. INVESTMENT ADVISORY AND CUSTODIAN AGREEMENTS:
The Trust and Clarion CRA Securities (the "Adviser") are parties to an
Investment Advisory Agreement under which the Adviser receives an annual fee
equal to .70% of the Fund's average daily net assets. The Adviser has, on a
voluntary basis, agreed to waive its fee and reimburse Fund expenses as
applicable in order to limit the Fund's total operating expenses to a maximum of
1.00% of the average daily net assets for Institutional shares. The Adviser
reserves the right to terminate this arrangement at any time in its sole
discretion.
First Union National Bank acts as custodian (the "Custodian") for the Fund. Fees
of the Custodian are paid on the basis of the net assets of the Fund. The
Custodian plays no role in determining the investment policies of the Fund or
which securities are to be purchased and sold by the Fund.
6. INVESTMENT TRANSACTIONS:
The cost of security purchases and the proceeds from security sales, other than
short-term investments, for the period ended October 31, 2000, are as follows
(000):
Purchases............................... $54,653
Sales .................................. $55,464
At October 31, 2000, the total cost of securities for Federal income tax
purposes was $54,940,394. The aggregate gross unrealized appreciation and
depreciation for securities held by the Fund at October 31, 2000, is as follows
(000):
Aggregate gross unrealized
appreciation ................................. $ 8,521
Aggregate gross unrealized
depreciation ................................. (682)
-------
Book net unrealized appreciation ............... 7,839
Less: Tax basis adjustments .................... (757)
-------
Tax net unrealized appreciation ................ $ 7,082
=======
For Federal income tax purposes the Fund has a December 31st tax year end.
Subsequent to October 31, 1999, the Fund had rec-ognized $2,330,968 in net
capital losses that have been deferred to 2000 for tax purposes and can be used
to offset future capital gains. The Fund also had a capital loss carryforward at
December 31, 1999, that can be used to offset future capital gains. The capital
loss carryforward will expire as follows:
December 2006................................... $1,645,236
December 2007................................... $4,472,093
----------
Total .......................................... $6,117,329
==========
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Shareholders and Board of Trustees of
CRA Realty Shares Portfolio of
The Advisors' Inner Circle Fund:
We have audited the accompanying statement of net assets of the CRA Realty
Shares Portfolio (the "Fund"), one of the funds constituting The Advisors' Inner
Circle Fund, as of October 31, 2000, and the related statement of operations,
the statements of changes in net assets, and the financial highlights for the
periods presented. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of October 31, 2000, by correspondence with
the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
CRA Realty Shares Portfolio of The Advisors' Inner Circle Fund as of October 31,
2000, and the results of its operations, the changes in its net assets, and the
financial highlights for the periods presented, in conformity with accounting
principles generally accepted in the United States.
ARTHUR ANDERSEN LLP
Philadelphia, Pennsylvania
December 15, 2000
<PAGE>
NOTES
<PAGE>
NOTES
<PAGE>
NOTES
<PAGE>
FUND:
CRA REALTY SHARES PORTFOLIO
P.O. Box 219009
Kansas City, MO 64121-9009
ADVISER:
CLARION CRA SECURITIES, L.P.
Suite 205, 259 N. Radnor-Chester Road
Radnor, PA 19087
DISTRIBUTOR:
SEI INVESTMENTS DISTRIBUTION CO.
Oaks, PA 19456
ADMINISTRATOR:
SEI INVESTMENTS MUTUAL FUNDS SERVICES
Oaks, PA 19456
LEGAL COUNSEL:
MORGAN, LEWIS & BOCKIUS LLP
1800 M Street N.W.
Washington, DC 20036
INDEPENDENT PUBLIC ACCOUNTANTS:
ARTHUR ANDERSEN LLP
1601 Market Street
Philadelphia, PA 19103
This information must be preceded or accompanied by a current prospectus for the
Fund described.
CRA-F-004-04
