[Logo Omitted]
The Pillar Funds
YOUR INVESTMENT FOUNDATION
[GRAPHIC OF COLUMN OMITTED]
SEMI-ANNUAL
REPORT
To Shareholders
June 30, 1998
<PAGE>
TABLE OF CONTENTS
Letter to Shareholders .............................. 1
Statement of NetAssets 3
Statement of Operations ............................. 39
Statements of Changes in Net Assets ................. 42
Financial Highlights ................................ 48
Notes to Financial Statements ....................... 54
NOT
FDIC MAY LOSE VALUE
INSURED NO BANK GUARANTEE
<PAGE>
[LOGO OMITTED]
JUNE 30, 1998
Letter to Shareholders
It always makes sense for investors to diversify their funds. And when you
look for ways to do it, international investing is one viable alternative. For
many Americans, international investing doesn't come naturally. Living and
working in an economically powerful nation, it's easy to think that the
financial world begins and ends on Wall Street. Why bother putting investment
dollars in places where the companies, the markets, the politics, the cultures,
even the currencies are all so, well, foreign?
The answer is that, as mighty as the U.S. economy may be, our gross
national product still accounts for only about a third of the world's output.
And less than half of global stock capitalization is represented by U.S. stocks.
Ours is a relatively mature economy, making it more stable and predictable for
us than foreign systems; but this also makes it a less likely place to look for
explosive growth potential. Whether you're talking about the sheer numbers that
an open China would represent, the industrialization of a South American
country, or the transformation of an Eastern European nation into a true market
economy, the rewards for wise investors could be great.
In short, there's an enormous amount of business activity and opportunity
outside of the United States. And international equities can help you take
better advantage of portfolio diversification because, historically, they are
not as likely to work in tandem with U.S. equities and may thereby help smooth
out fluctuations, cushion downturns and contribute to possible long-term success
for the investor. You should remember that, in addition to the normal risks
associated with equity investing, international investing may entail the risk of
capital loss due to unfavorable fluctuations in currency values, as well as
economic or political instability in other nations.
Peter Newell, Managing Director, Senior Vice President of Vontobel USA Inc.
said, "We're operating in an environment of low interest rates and low
inflation, and the combination of those two has usually been good for
global equities."
(CONTINUED NEXT PAGE)
1
<PAGE>
It takes special skills, good contacts and research to discover, analyze
and track promising stocks in other countries. The fund manager of the Pillar
International Growth Fund provides the necessary skills and guidance to help you
make sense out of complex international markets.
Before you invest in international funds, you'll want to learn what's
available. First, the words "global" and "international" are not interchangeable
in the mutual fund industry. A global fund combines securities of both U.S. and
foreign countries, while an international fund focuses only on non-U.S.
securities.
The Pillar Funds family includes an international fund to fit into your
personal investment plans.
There are certainly risks involved in international investing, but as we
move toward a global economy, diversifying with an international fund
usually makes sense in the long run, because of the potential for maximum growth
and less dependence on the U.S. market alone.
Sincerely,
/S/ Signature Omitted /S/ Signature Omitted
Mark Nagle Hilton M. Jervey, CFA
President and CEO Senior Vice President
The Pillar Funds Chief Investment Officer
Summit Bank
2
<PAGE>
[LOGO OMITTED]
JUNE 30, 1998 (UNAUDITED)
Statement of Net Assets
U.S. TREASURY SECURITIES MONEY MARKET FUND
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS--47.6%
U.S. Treasury Bill (A)
4.985%, 07/23/98 $30,000 $ 29,909
---------
U.S. Treasury Notes
5.250%, 07/31/98 30,000 29,999
5.875%, 08/15/98 17,000 17,010
4.750%, 08/31/98 80,000 79,921
4.750%, 09/30/98 20,000 19,966
4.750%, 10/31/98 65,000 64,838
5.500%, 11/15/98 20,000 20,004
5.000%, 01/31/99 20,000 19,941
U.S. Treasury STRIPS
5.420%, 08/15/98 28,000 27,819
---------
Total U.S. Treasury Obligations
(Cost $309,407) 309,407
---------
REPURCHASE AGREEMENTS--52.3%
Barclays
5.73%, dated 06/30/98, matures
07/01/98, repurchase price
$155,011,034 (collateralized by
U.S. Treasury Securities, total
market value $158,086,664) (B) 154,986 154,986
J.P. Morgan
5.73%, dated 06/30/98, matures
07/01/98, repurchase price
$155,211,744 (collateralized by
U.S. Treasury Securities, total
market value $158,291,361) (B) 155,187 155,187
Morgan Stanley
5.73%, dated 06/30/98, matures
07/01/98, repurchase price
$30,265,414 (collateralized by
U.S. Treasury Securities, total
market value $31,020,986) (B) 30,261 30,261
---------
Total Repurchase Agreements
(Cost $340,434) 340,434
---------
Total Investments--99.9%
(Cost $649,841) 649,841
---------
OTHER ASSETS AND LIABILITIES, NET--0.1% 836
---------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 616,568,794 outstanding shares
of beneficial interest 616,569
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 33,806,000 outstanding shares
of beneficial interest $ 33,806
Accumulated net realized gain on investments 302
---------
Total Net Assets--100.0% $ 650,677
=========
Net Asset Value, Offering and Redemption
Price Per Share-- Class I $1.00
=========
Net Asset Value and Redemption Price
Per Share -- Class A $1.00
=========
(A) THE RATES REFLECTED ON THE STATEMENT OF NET ASSETS REPRESENTS THE SECURITY'S
DISCOUNT RATE AT PURCHASE.
(B) TRI-PARTY REPURCHASE AGREEMENT.
STRIPS -- SEPARATE TRADING OF REGISTERED INTEREST AND PRINCIPAL OF SECURITIES.
THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS REPRESENTS THE
SECURITY'S EFFECTIVE YIELD AT PURCHASE.
PRIME OBLIGATION MONEY MARKET FUND
- --------------------------------------------------------------------------------
COMMERCIAL PAPER--76.9%
BANKING--13.5%
Abbey National Bank
5.480%, 07/02/98 $ 5,000 4,999
5.480%, 07/17/98 15,000 14,963
Banc One Funding
5.500%, 07/07/98 5,000 4,995
5.520%, 07/31/98 7,000 6,968
5.510%, 09/11/98 7,000 6,923
Banker's Trust
5.400%, 08/26/98 5,000 4,958
5.500%, 09/14/98 5,000 4,943
5.500%, 11/04/98 200 196
5.460%, 01/04/99 5,000 4,858
Norwest Financial
5.520%, 07/06/98 10,000 9,992
Toronto Dominion
5.360%, 08/12/98 5,000 4,969
---------
68,764
---------
FINANCIAL SERVICES--42.6%
American Express
5.500%, 07/20/98 5,000 4,986
5.500%, 07/21/98 5,000 4,985
5.520%, 08/10/98 5,000 4,969
5.510%, 08/14/98 5,000 4,966
ANZ Delaware
5.520%, 07/01/98 7,000 7,000
3
<PAGE>
Statement of Net Assets
PRIME OBLIGATION MONEY MARKET FUND (CONTINUED)
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Centric Funding
5.370%, 07/13/98 $ 5,000 $ 4,991
5.400%, 11/25/98 9,200 8,997
Ford Motor Credit
5.700%, 07/02/98 5,000 4,999
5.570%, 07/08/98 5,000 4,995
5.510%, 07/22/98 5,000 4,984
5.490%, 09/21/98 5,000 4,938
General Electric Capital
5.490%, 07/20/98 5,000 4,986
5.440%, 08/04/98 5,000 4,974
5.510%, 08/10/98 5,000 4,969
5.510%, 10/21/98 5,000 4,914
Goldman Sachs
5.500%, 08/19/98 10,000 9,925
5.520%, 08/26/98 10,000 9,914
International Lease
5.450%, 08/14/98 10,000 9,933
J.P. Morgan
5.540%, 07/17/98 2,000 1,995
5.350%, 08/21/98 5,000 4,962
5.480%, 12/11/98 5,500 5,364
Merrill Lynch
5.520%, 07/06/98 5,000 4,996
5.460%, 09/11/98 5,000 4,945
5.420%, 09/21/98 5,000 4,938
5.520%, 10/20/98 5,000 4,915
Paccar
5.530%, 07/14/98 10,000 9,980
5.530%, 07/20/98 3,950 3,938
5.560%, 07/28/98 5,000 4,979
Societe General
5.520%, 07/07/98 5,000 4,995
5.500%, 07/17/98 10,000 9,976
5.470%, 10/07/98 3,050 3,005
Transamerica
5.530%, 07/22/98 5,000 4,984
5.510%, 08/14/98 10,000 9,933
5.510%, 08/17/98 3,020 2,998
USAA Capital
5.520%, 08/17/98 10,000 9,928
5.460%, 08/28/98 10,000 9,912
---------
217,168
---------
INDUSTRIAL--12.4%
American Home Products
5.500%, 08/21/98 1,000 992
5.510%, 08/28/98 5,000 4,956
5.490%, 10/15/98 5,000 4,919
Ciesco
5.510%, 07/13/98 10,000 9,982
5.500%, 08/14/98 10,000 9,933
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Colonial Pipeline
5.530%, 08/28/98 $ 2,711 $ 2,687
5.430%, 09/11/98 5,000 4,946
5.480%, 10/16/98 500 492
Hasbro
5.600%, 07/20/98 10,000 9,970
McGraw Hill
5.500%, 09/23/98 10,000 9,872
Pitney Bowes
5.700%, 07/10/98 4,600 4,593
---------
63,342
---------
UTILITIES--8.4%
Consolidated Edison
5.570%, 07/16/98 4,500 4,490
5.550%, 07/20/98 2,715 2,707
Florida Power
5.520%, 07/22/98 4,320 4,306
Georgia Power
5.530%, 07/10/98 2,500 2,497
5.500%, 07/16/98 7,000 6,984
National Rural Utilities Cooperative
5.500%, 07/23/98 6,000 5,980
5.470%, 07/30/98 5,000 4,978
Southern California Edison
5.620%, 07/16/98 11,000 10,974
---------
42,916
---------
Total Commercial Paper
(Cost $392,190) 392,190
---------
U.S. GOVERNMENT AGENCY OBLIGATIONS--9.6%
Federal Farm Credit Bank
5.460%, 07/01/98 5,000 5,000
5.430%, 09/01/98 5,000 5,000
5.530%, 10/01/98 3,000 3,000
Federal Home Loan Bank
5.579%, 01/27/99 5,000 5,000
5.610%, 03/02/99 5,000 5,000
5.615%, 03/12/99 5,000 5,000
5.700%, 03/17/99 5,000 5,000
5.720%, 04/23/99 5,000 5,000
5.752%, 05/12/99 5,000 5,000
5.750%, 05/27/99 6,000 6,000
---------
Total U.S. Government Agency Obligations
(Cost $49,000) 49,000
---------
CORPORATE OBLIGATION--1.0%
John Deere (MTN)
5.850%, 10/28/98 5,000 4,999
---------
Total Corporate Obligation
(Cost $4,999) 4,999
---------
4
<PAGE>
[LOGO OMITTED]
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--13.4%
Barclays
5.73%, dated 06/30/98, matures
07/01/98, repurchase price
$31,420,818 (collateralized by
U.S. Treasury Securities, total
market value $32,044,675) (A) $31,416 $ 31,416
J.P. Morgan
5.73%, dated 06/30/98, matures
07/01/98, repurchase price
$37,200,956 (collateralized by
U.S. Treasury Securities, total
market value $37,933,759) (A) 37,195 37,195
--------
Total Repurchase Agreements
(Cost $68,611) 68,611
--------
Total Investments--100.9%
(Cost $514,800) 514,800
--------
OTHER ASSETS AND LIABILITIES, NET--(0.9%) (4,589)
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 437,787,131 outstanding shares
of beneficial interest 437,787
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 19,026,354 outstanding shares
of beneficial interest 19,027
Portfolio Shares of Class B (unlimited
authorization -- no par value) based
on 63,638 outstanding shares
of beneficial interest 64
Portfolio Shares of Class S (unlimited
authorization -- no par value) based
on 53,352,130 outstanding shares
of beneficial interest 53,352
Undistributed net investment income 13
Accumulated net realized loss on investments (32)
--------
Total Net Assets--100.0% $510,211
--------
Net Asset Value, Offering and Redemption
Price Per Share-- Class I $1.00
========
Net Asset Value and Redemption Price
Per Share -- Class A $1.00
========
Net Asset Value and Redemption Price
Per Share -- Class B $1.00
========
Net Asset Value and Redemption Price
Per Share -- Class S $1.00
========
(A) TRI-PARTY REPURCHASE AGREEMENT.
MTN -- MEDIUM TERM NOTE
TAX-EXEMPT MONEY MARKET FUND
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS--89.0%
ALABAMA--1.8%
State, Public School &
College Authority (RB)
4.500%, 11/01/98 $1,490 $ 1,493
--------
ALASKA--1.9%
Kenai Peninsula (GO) (AMBAC)
8.300%, 01/01/99 1,500 1,535
--------
ARIZONA--3.0%
Avondale, Industrial
Development (RB) (A) (B)
3.600%, 07/01/98 1,500 1,500
State, Transportation
Board (RB) (MBIA)
6.800%, 07/01/98 1,000 1,000
--------
2,500
--------
FLORIDA--2.1%
Jacksonville (CP)
3.600%, 09/08/98 1,750 1,750
--------
GEORGIA--2.4%
Marietta, Housing Authority,
Bells Ferry (RB) (A) (C)
3.950%, 07/15/98 1,955 1,955
--------
ILLINOIS--2.4%
State, Development Finance Authority,
Illinois Power Project,
Series B (RB) (A) (B) (C)
3.500%, 07/01/98 2,000 2,000
--------
LOUISIANA--11.4%
New Orleans, Aviation Board,
Series A (RB) (MBIA) (A) (B) (C)
3.500%, 07/01/98 2,000 2,000
New Orleans, Aviation Board,
Series B (RB) (MBIA) (A) (B) (C)
3.500%, 07/01/98 3,000 3,000
New Orleans, Aviation Board,
Series C (GO) (MBIA) (A) (B) (C)
3.500%, 07/01/98 1,400 1,400
State, Public Facilities Authority,
Willis-Knighton Medical
Center (RB) (AMBAC) (A) (B) (C)
3.500%, 07/01/98 3,000 3,000
--------
9,400
--------
5
<PAGE>
Statement of Net Assets
TAX-EXEMPT MONEY MARKET FUND (CONTINUED)
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MARYLAND--0.6%
State, Department of
Transportation (RB)
6.400%, 07/15/98 $ 500 $ 501
--------
MICHIGAN--1.5%
State, Hospital Financing Authority,
Hospital Equipment
Program (RB) (A) (B) (C)
3.600%, 07/01/98 1,200 1,200
--------
MINNESOTA--1.7%
New Brighton, Industrial
Development Authority,
Unicare Nursing Homes
Project (A) (B) (C)
3.700%, 07/01/98 1,400 1,400
--------
MISSOURI--1.5%
Springfield, Industrial Development
Authority, Pebblecreek
Apartments (RB) (A) (B) (C)
3.550%, 07/01/98 1,200 1,200
--------
NEVADA--1.2%
Las Vegas, Nevada Convention &
Visitors Authority (GO) (MBIA)
5.400%, 07/01/98 1,000 1,000
--------
NEW JERSEY--31.2%
Borough of Paramus (BAN)
3.820%, 08/13/98 1,500 1,500
City of Summit (BAN)
4.000%, 12/17/98 900 901
Essex County, Series A (BAN)
4.250%, 08/07/98 1,700 1,701
Hackensack (BAN)
4.000%, 12/17/98 1,500 1,501
Morristown (TAN)
3.800%, 02/11/99 2,000 2,002
North Arlington (BAN)
4.250%, 07/22/98 1,000 1,000
Passiac County, Series 97b (MBIA)
3.900%, 08/04/98 1,000 1,000
Paterson (GO) (FSA)
4.750%, 08/15/98 1,120 1,121
Salem County (CP)
3.400%, 09/09/98 1,500 1,500
State (GO)
4.500%, 03/01/99 2,500 2,516
State, Economic Development
Authority, Peddie School
Project (RB) (A) (B) (C)
3.500%, 07/02/98 1,350 1,350
State, Education Authority (RB)
6.850%, 07/01/99 2,000 2,097
State, Transportation Authority (RB)
5.000%, 12/15/98 1,410 1,419
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Summit (BAN)
4.000%, 07/21/98 $ 300 $ 300
4.000%, 02/23/99 800 801
Tewksbury Township (BAN)
3.875%, 02/11/99 1,000 1,001
West Deptford Township (BAN)
4.250%, 12/23/98 2,000 2,005
Westwood (GO)
4.250%, 08/17/98 2,000 2,001
--------
25,716
--------
NEW YORK--7.2%
New York City, Municipal Water
Finance Agency (RB) (FGIC) (A)
3.800%, 07/01/98 2,000 2,000
Port Authority of New York
and New Jersey (CP)
3.500%, 10/16/98 3,950 3,950
--------
5,950
--------
NORTH CAROLINA--1.3%
Wake County, Carolina Power &
Light Company (RB) (A) (B) (C)
3.500%, 07/01/98 1,100 1,100
--------
PENNSYLVANIA--3.0%
Washington County, State Authority
Lease Revenue, Higher Education
Pooled Equipment Lease (RB) (A)
3.650%, 07/01/98 2,500 2,500
--------
SOUTH CAROLINA--1.2%
York County, Pollution
Control Revenue (RB) (A)
3.500%, 09/15/98 1,000 1,000
--------
TENNESSEE--4.6%
Morristown, Industrial Development
Board, Williamhouse
Regency (RB) (A) (B)
3.800%, 07/01/98 1,800 1,800
Nashville & Davidson Counties,
Old Hickory Towers,
Series A (RB) (A) (B) (C)
3.800%, 07/01/98 2,000 2,000
--------
3,800
--------
TEXAS--3.7%
Austin, Utility Authority (CP)
3.750%, 07/11/98 1,000 1,000
Harris County (GO)
5.750%, 10/01/98 2,000 2,010
--------
3,010
--------
VIRGINIA--1.0%
Franklin County (GO)
5.600%, 07/15/98 825 826
--------
<PAGE>
6
[LOGO OMITTED]
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE AMOUNT/
DESCRIPTION SHARES (000) VALUE (000)
- --------------------------------------------------------------------------------
WASHINGTON--2.6%
Chelan County, Public Utility
District, Chelan Hydro Project,
Series A (RB) (MBIA) (A)
3.500%, 07/01/98 $2,130 $ 2,130
--------
WISCONSIN--1.7%
State, Transportation (RB)
4.600%, 07/01/98 1,400 1,400
--------
Total Municipal Bonds
(Cost $73,366) 73,366
--------
U.S. TREASURY OBLIGATION--3.6%
U.S. Treasury Bill (D)
4.700%, 07/02/98 3,000 3,000
--------
Total U.S. Treasury Obligation
(Cost $3,000) 3,000
--------
CASH EQUIVALENTS--6.6%
Goldman Sachs Tax-Free
Money Market 1,567 1,567
SEI Institutional Tax-Free
Portfolio 3,874 3,874
--------
Total Cash Equivalents
(Cost $5,441) 5,441
--------
Total Investments--100.0%
(Cost $81,807) 81,807
--------
OTHER ASSETS AND LIABILITIES, NET--0.8% 671
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 74,626,162 outstanding shares
of beneficial interest 74,626
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 7,858,646 outstanding shares
of beneficial interest 7,858
Undistributed net investment income 1
Accumulated net realized loss on investments (7)
--------
Total Net Assets--100.0% $82,478
========
Net Asset Value, Offering and Redemption
Price Per Share-- Class I $1.00
========
Net Asset Value, Offering and Redemption
Price Per Share-- Class A $1.00
========
(A) FLOATING RATE INSTRUMENT WITH DEMAND FEATURES. THE RATE REFLECTED ON THE
STATEMENT OF NET ASSETS IS THE RATE IN EFFECT ON JUNE 30, 1998. THE DATE
SHOWN IS THE LONGER OF THE RESET OR THE DEMAND DATE.
(B) PUT OR DEMAND FEATURES EXIST REQUIRING THE ISSUER TO REPURCHASE THE
INSTRUMENT PRIOR TO MATURITY.
(C) SECURITIES ARE HELD IN CONNECTION WITH A LETTER OF CREDIT OR OTHER CREDIT
SUPPORT.
- --------------------------------------------------------------------------------
FACE AMOUNT
DESCRIPTION (000) VALUE (000)
- --------------------------------------------------------------------------------
(D) THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS REPRESENTS THE SECURITY'S
DISCOUNT RATE AT PURCHASE.
BAN -- BOND ANTICIPATION NOTE
CP -- COMMERCIAL PAPER
GO -- GENERAL OBLIGATION
RB -- REVENUE BOND
TAN -- TAX ANTICIPATION NOTE
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING CREDIT SUPPORT FOR CERTAIN
SECURITIES AS DEFINED IN THE STATEMENT OF NET ASSETS:
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
FGIC -- FINANCIAL GUARANTY INSURANCE COMPANY
FSA -- FINANCIAL SECURITIES ASSURANCE
MBIA -- MUNICIPAL BOND INVESTORS ASSURANCE
U.S. TREASURY SECURITIES PLUS MONEY
MARKET FUND
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS--60.8%
U.S. Treasury Bill (A)
4.985%, 07/23/98 $ 3,000 $ 2,991
U.S. Treasury Notes
5.250%, 07/31/98 4,000 4,000
5.875%, 08/15/98 3,000 3,002
4.750%, 08/31/98 20,000 19,980
4.750%, 09/30/98 3,000 2,995
4.750%, 10/31/98 2,000 1,995
U.S. Treasury STRIPS
5.330%, 08/15/98 2,000 1,987
--------
Total U.S. Treasury Obligations
(Cost $36,950) 36,950
--------
REPURCHASE AGREEMENTS--38.8%
Barclays
5.73%, dated 06/30/98, matures
07/01/98, repurchase price
$11,894,391 (collateralized by
U.S. Treasury Securities, total
market value $12,130,839) (B) 11,893 11,893
J.P. Morgan
5.73%, dated 06/30/98, matures
07/01/98, repurchase price
$11,703,999 (collateralized by
U.S. Treasury Securities, total
market value $11,936,446) (B) 11,702 11,702
--------
Total Repurchase Agreements
(Cost $23,595) 23,595
--------
Total Investments--99.6%
(Cost $60,545) 60,545
--------
OTHER ASSETS AND LIABILITIES, NET--0.4% 246
--------
7
<PAGE>
Statement of Net Assets
U.S. TREASURY SECURITIES PLUS MONEY MARKET FUND (CONTINUED)
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 60,809,102 outstanding shares
of beneficial interest $60,809
Accumulated net realized loss on investments (18)
--------
Total Net Assets--100.0% $60,791
========
Net Asset Value, Offering and Redemption
Price Per Share-- Class I $1.00
========
(A) THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS REPRESENTS THE SECURITY'S
DISCOUNT RATE AT PURCHASE.
(B) TRI-PARTY REPURCHASE AGREEMENT.
STRIPS -- SEPARATE TRADING OF REGISTERED INTEREST AND PRINCIPAL OF SECURITIES.
THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS REPRESENTS THE
SECURITY'S EFFECTIVE YIELD AT PURCHASE.
INSTITUTIONAL SELECT MONEY MARKET FUND
- --------------------------------------------------------------------------------
COMMERCIAL PAPER--64.0%
BANKS--12.9%
Abbey National Bank
5.480%, 07/02/98 $2,000 2,000
5.480%, 07/17/98 2,000 1,995
Banc One Funding
5.500%, 07/07/98 1,000 999
5.500%, 07/15/98 500 499
5.520%, 07/31/98 1,000 995
5.510%, 08/21/98 1,000 992
Banker's Trust
5.520%, 07/07/98 850 849
5.400%, 08/26/98 2,000 1,983
5.460%, 01/04/99 1,000 972
Toronto Dominion
5.360%, 08/12/98 1,000 994
--------
12,278
--------
FINANCIAL SERVICES--35.6%
ABN-AMRO
5.460%, 07/13/98 2,600 2,595
5.470%, 07/13/98 500 499
American Express
5.500%, 07/21/98 1,000 997
5.510%, 08/14/98 1,000 993
Centric Funding
5.370%, 07/13/98 1,000 998
5.550%, 07/22/98 700 698
Ford Motor Credit
5.550%, 07/13/98 1,000 998
5.510%, 07/22/98 1,000 997
5.470%, 08/19/98 1,000 993
5.490%, 09/21/98 1,000 987
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
General Electric Capital
5.480%, 07/09/98 $1,000 $ 999
5.380%, 07/20/98 500 499
5.430%, 08/13/98 1,000 994
5.460%, 09/21/98 1,000 988
5.510%, 10/21/98 1,000 983
General Motors Acceptance
5.540%, 07/10/98 600 599
International Lease
5.380%, 08/03/98 1,500 1,493
5.450%, 08/14/98 1,100 1,093
J.P. Morgan
5.350%, 08/21/98 1,000 992
Merrill Lynch
5.390%, 08/28/98 1,000 991
5.450%, 09/18/98 1,000 988
5.510%, 09/30/98 1,100 1,085
5.520%, 10/20/98 1,000 983
Paccar
5.550%, 07/23/98 600 598
Societe General
5.500%, 07/17/98 2,000 1,995
Transamerica
5.530%, 07/07/98 2,900 2,897
5.500%, 07/10/98 1,000 999
5.510%, 08/14/98 1,000 993
USAA Capital
5.380%, 07/14/98 1,000 998
5.460%, 08/28/98 2,000 1,982
--------
33,904
--------
INDUSTRIAL--8.9%
American Home Products
5.500%, 08/21/98 2,000 1,984
Ciesco
5.510%, 07/13/98 500 499
5.600%, 07/20/98 700 698
5.500%, 08/14/98 1,650 1,639
5.560%, 08/14/98 750 745
Colonial Pipeline
5.480%, 10/16/98 1,000 984
McGraw Hill
5.500%, 09/23/98 2,000 1,974
--------
8,523
--------
UTILITIES--6.6%
BellSouth
5.500%, 08/27/98 890 882
Consolidated Edison
5.550%, 07/20/98 2,600 2,592
Florida Power
5.510%, 07/15/98 1,000 998
5.520%, 07/22/98 1,000 997
8
<PAGE>
[LOGO OMITTED]
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE
- --------------------------------------------------------------------------------
Southern California Edison
5.620%, 07/16/98 $ 800 $ 798
--------
6,267
--------
Total Commercial Paper
(Cost $60,972) 60,972
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS--13.2%
Federal Home Loan Bank (A)
5.579%, 01/27/99 1,000 1,000
5.610%, 03/02/99 1,000 1,000
5.615%, 03/12/99 1,000 1,000
5.700%, 03/17/99 2,000 2,000
5.650%, 03/30/99 1,100 1,100
5.720%, 04/23/99 2,000 2,000
5.752%, 05/12/99 2,000 2,000
5.750%, 05/27/99 2,500 2,500
--------
Total U.S. Government Agency Obligations
(Cost $12,600) 12,600
--------
CORPORATE OBLIGATION--0.5%
John Deere (MTN)
5.850%, 10/28/98 500 500
--------
Total Corporate Obligation
(Cost $500) 500
--------
REPURCHASE AGREEMENTS--22.6%
Barclays
5.73%, dated 06/30/98, matures
07/01/98, repurchase price
$9,846,482 (collateralized by
U.S. Treasury Securities, total
market value $10,042,150) (B) 9,845 9,845
J.P. Morgan
5.73%, dated 06/30/98, matures
07/01/98, repurchase price
$11,674,048 (collateralized by
U.S. Treasury Securities, total
market value $11,906,027) (B) 11,672 11,672
--------
Total Repurchase Agreements
(Cost $21,517) 21,517
--------
Total Investments--100.3%
(Cost $95,589) 95,589
--------
OTHER ASSETS AND LIABILITIES, NET--(0.3%) (293)
--------
- --------------------------------------------------------------------------------
FACE AMOUNT/
DESCRIPTION SHARES (000) VALUE
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 95,295,741 outstanding shares
of beneficial interest $ 95,296
--------
Total Net Assets--100.0% $ 95,296
========
Net Asset Value, Offering and Redemption
Price Per Share-- Class I $1.00
========
(A) THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS REPRESENTS THE SECURITY'S
DISCOUNT RATE AT PURCHASE.
(B) TRI-PARTY REPURCHASE AGREEMENT.
MTN -- MEDIUM TERM NOTE
SHORT-TERM INVESTMENT FUND
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS--94.8%
U.S. Treasury Bills (A)
4.500%, 07/09/98 $700 699
5.300%, 08/20/98 900 894
5.075%, 03/04/99 500 483
--------
Total U.S. Treasury Obligations
(Cost $2,075) 2,076
--------
CASH EQUIVALENTS--5.2%
SEI Liquid Asset Trust--
Government Portfolio 86 86
SEI Liquid Asset Trust--
Treasury Portfolio 27 27
--------
Total Cash Equivalents
(Cost $113) 113
--------
Total Investments--100.0%
(Cost $2,188) 2,189
--------
OTHER ASSETS AND LIABILITIES, NET--0.0% 0
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 185,488 outstanding shares
of beneficial interest 1,902
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 32,648 outstanding shares
of beneficial interest 328
Overdistributed of net investment income (1)
Accumulated net realized loss on investments (41)
Net unrealized appreciation on investments 1
--------
Total Net Assets--100.0% $ 2,189
========
9
<PAGE>
Statement of Net Assets
SHORT-TERM INVESTMENT FUND (CONTINUED)
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
DESCRIPTION (000) VALUE (000)
- --------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share-- Class I $10.04
========
Net Asset Value and Redemption Price
Per Share -- Class A $10.03
========
Maximum Offering Price Per Share --
Class A ($10.03 / 99%) $10.13
========
(A) THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS REPRESENTS THE SECURITY'S
DISCOUNT RATE AT PURCHASE.
FIXED INCOME FUND
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--52.4%
Federal Farm Credit Bank
6.560%, 12/23/99 $ 60 61
6.920%, 09/09/03 1,000 1,053
Federal Home Loan Bank
6.250%, 11/06/02 5,000 5,041
5.785%, 03/17/03 5,000 5,017
6.520%, 04/07/03 5,000 5,036
6.380%, 04/29/03 1,000 999
7.000%, 10/29/07 5,000 5,044
7.200%, 10/30/12 5,000 5,049
Federal Home Loan
Mortgage Corporation
7.040%, 10/22/03 750 752
6.375%, 12/23/03 1,000 999
7.030%, 04/05/04 1,000 1,009
6.130%, 02/27/06 1,600 1,630
7.550%, 08/23/06 1,000 1,021
7.585%, 09/19/06 1,000 1,049
7.340%, 11/03/06 2,000 2,037
Federal National
Mortgage Association
5.625%, 03/15/01 5,000 4,998
6.800%, 01/10/03 1,500 1,565
6.200%, 07/10/03 3,000 2,995
6.250%, 08/12/03 2,960 2,957
5.930%, 09/26/03 1,750 1,739
6.850%, 09/12/05 1,000 1,018
7.560%, 06/12/06 900 940
7.760%, 08/02/06 2,000 2,045
7.060%, 11/29/06 3,250 3,293
6.990%, 07/09/07 5,000 5,165
5.750%, 02/15/08 5,000 4,974
Federal National Mortgage
Association (MTN)
6.850%, 05/08/02 5,000 5,106
6.360%, 10/23/02 5,000 5,047
6.490%, 01/19/06 1,000 1,006
6.760%, 07/16/07 5,000 5,125
6.210%, 11/07/07 5,000 5,128
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
6.560%, 12/10/07 $5,000 $ 5,076
6.810%, 12/18/07 5,000 5,061
6.620%, 12/28/07 4,000 4,019
6.240%, 01/14/08 5,000 5,027
6.290%, 04/23/08 5,000 5,030
--------
Total U.S. Government Agency Obligations
(Cost $111,509) 113,111
--------
CORPORATE BONDS--13.8%
FINANCIAL SERVICES--4.7%
Cit Group Holdings (MTN)
6.250%, 11/22/01 5,000 5,025
Ford Motor Credit
6.250%, 11/08/00 2,000 2,010
6.750%, 05/15/05 1,000 1,031
General Electric Capital
5.500%, 11/01/01 1,000 986
General Electric Capital (MTN)
6.875%, 04/15/00 1,000 1,018
--------
10,070
--------
INDUSTRIAL--6.6%
Anheuser Busch
6.750%, 06/01/05 1,000 1,024
E.I. DuPont de Nemours
6.000%, 12/01/01 2,000 2,000
6.750%, 10/15/02 1,000 1,035
Eli Lilly
6.250%, 03/15/03 2,000 2,030
H.J. Heinz
6.000%, 03/15/08 3,000 2,989
Sears Roebuck
6.690%, 04/30/01 3,000 3,045
SmithKline Beecham (MTN)
6.625%, 10/01/05 2,000 2,068
--------
14,191
--------
UTILITIES--2.5%
AT&T
7.500%, 06/01/06 1,000 1,080
Duke Power
7.000%, 09/01/05 1,300 1,341
U.S. West Communications
6.125%, 11/15/05 2,000 1,993
Union Pacific
6.125%, 01/15/04 1,000 995
--------
5,409
--------
Total Corporate Bonds
(Cost $28,968) 29,670
--------
10
<PAGE>
[LOGO OMITTED]
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS--15.1%
Alabama State, Housing
Finance Authority (RB)
7.625%, 08/01/10 $ 815 $ 840
Arkansas State, Development
Finance Authority (RB)
9.750%, 11/15/05 610 678
Baltimore, Maryland, City
Parking, Series B (RB) (FGIC)
7.950%, 07/01/03 510 550
Buffalo, New York, Pens System,
Series D (GO) (FGIC)
8.500%, 08/15/03 360 398
Camden County, New Jersey
Improvement Authority, Series A (RB)
7.200%, 01/01/04 2,200 2,296
Collier County, Florida, Water and
Sewer Authority, Series A
(RB) (FGIC)
6.300%, 07/01/04 450 454
6.750%, 07/01/08 790 818
Colorado State, Housing Finance
Authority, Single Family Program,
Series B-1 (RB)
10.400%, 08/01/03 85 89
Fort Myers, Florida, Improvement
Authority, Series B (RB) (AMBAC)
8.450%, 12/01/03 645 710
Gillette, Wyoming, Community
Program (SOB)
10.250%, 01/01/11 1,095 1,231
Houston, Texas, Airport
Systems (RB) (FGIC)
6.100%, 07/01/01 1,260 1,266
Metropolitan Washington D.C. &
Virginia Airport Authority
(RB) (MBIA)
6.900%, 10/01/08 1,980 2,044
Michigan State, Higher Education
Student Loan Authority,
Series XV-C (RB)
7.250%, 09/01/02 775 794
Minneapolis and St. Paul,
Minnesota, Metropolitan
Airport Authority, Series 9 (GO)
8.600%, 01/01/10 900 998
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Missouri State, Economic
Development & Infrastructure
Board Health Services,
Series A (RB) (MBIA)
8.400%, 06/01/04 $1,350 $ 1,500
Monrovia, California
Redevelopment Agency (AMBAC)
8.100%, 05/01/01 650 684
New Hampshire State, Business
Finance Authority, Series A (RB)
8.600%, 11/01/12 2,165 2,390
New Hampshire State, Pease
Development Authority (GO)
7.050%, 07/01/06 410 431
New Jersey State (COP)
8.000%, 12/15/02 1,035 1,102
New Jersey State, Economic
Development Authority (RB)
7.800%, 03/15/07 1,645 1,760
New York State, Mortgage
Agency, Series 15 (RB)
7.375%, 10/01/12 2,012 2,083
Oklahoma City, Oklahoma Airport
Trust, Junior Lien,
Series 21 (RB) (MBIA)
6.750%, 07/01/05 1,010 1,038
Oklahoma City, Oklahoma Airport
Trust, Senior Lien, Series 17 (RB)
8.300%, 10/01/12 2,015 2,151
Oklahoma State, Single Family
Housing Finance Agency
(RB) (MBIA)
8.700%, 09/01/13 1,015 1,118
Palm Beach County, Florida,
Airport Systems Revenue
(RB) (MBIA)
9.500%, 10/01/10 1,325 1,406
Raleigh, North Carolina, North
Carolina State University
(RB) (MBIA)
7.700%, 12/15/07 1,175 1,259
Secaucus, New Jersey, Municipal
Utilities Authority (RB)
8.500%, 12/01/06 600 673
Vero Beach, Florida, Water and
Sewer Authority,
Series A (RB) (FGIC)
6.400%, 12/01/08 1,885 1,916
--------
Total Municipal Bonds
(Cost $31,445) 32,677
--------
11
<PAGE>
Statement of Net Assets
FIXED INCOME FUND (CONTINUED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS--11.9%
U.S. Treasury Notes
5.500%, 03/31/03 $ 5,000 $ 4,994
6.125%, 08/15/07 5,000 5,200
U.S. Treasury STRIPS
5.920%, 02/15/03 15,000 11,688
5.720%, 02/15/08 6,500 3,820
--------
Total U.S. Treasury Obligations
(Cost $25,526) 25,702
--------
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS--4.3%
Federal Home Loan Mortgage
Corporation
7.500%, 10/15/01 972 988
8.000%, 06/25/04 470 472
9.500%, 10/01/04 91 96
9.500%, 07/01/06 46 49
8.000%, 06/01/07 157 164
9.000%, 08/01/08 79 82
10.000%, 02/01/09 52 57
9.250%, 05/01/09 388 414
9.500%, 08/01/09 38 41
8.750%, 09/01/09 53 57
10.000%, 04/01/10 26 29
8.750%, 09/01/10 127 135
9.500%, 09/01/10 124 133
9.750%, 11/01/10 122 132
10.250%, 11/01/10 12 14
9.500%, 03/01/11 29 31
9.500%, 04/01/11 89 96
10.000%, 05/01/11 142 155
10.000%, 12/01/13 34 37
8.750%, 07/01/15 24 26
7.500%, 07/15/15 740 746
9.250%, 08/01/15 192 205
9.000%, 10/01/15 78 84
6.500%, 04/15/16 588 588
9.500%, 09/01/16 21 23
9.000%, 10/01/16 39 42
9.500%, 11/01/16 39 42
8.500%, 07/01/17 52 56
9.000%, 10/01/19 149 159
7.000%, 05/15/20 1,000 1,002
Federal National Mortgage Association
6.500%, 06/15/04 330 332
7.000%, 05/25/05 1 1
6.950%, 05/25/06 794 800
8.000%, 03/01/07 127 132
7.000%, 04/01/07 120 122
9.000%, 03/01/09 51 54
8.500%, 08/01/17 67 71
6.700%, 09/25/18 910 914
8.000%, 01/25/19 378 385
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Government National Mortgage Association
9.000%, 03/15/08 $ 22 $ 24
9.000%, 11/15/08 120 129
9.500%, 10/15/20 87 95
--------
Total U.S. Government Mortgage-
Backed Obligations
(Cost $9,040) 9,214
--------
ASSET-BACKED SECURITY--0.5%
Discover Card Master Trust
6.200%, 05/16/06 1,000 1,013
--------
Total Asset-Backed Security
(Cost $976) 1,013
--------
CASH EQUIVALENTS--1.0%
SEI Liquid Asset Trust--
Government Portfolio 1,675 1,675
SEI Liquid Asset Trust--
Treasury Portfolio 416 416
--------
Total Cash Equivalents
(Cost $2,091) 2,091
--------
Total Investments--99.0%
(Cost $209,555) 213,478
--------
OTHER ASSETS AND LIABILITIES, NET--1.0% 2,060
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 20,093,932 outstanding shares
of beneficial interest 204,853
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 427,772 outstanding shares
of beneficial interest 4,895
Portfolio Shares of Class B (unlimited
authorization -- no par value) based
on 176,499 outstanding shares
of beneficial interest 1,829
Overdistribution of net investment income (12)
Accumulated net realized gain on investments 50
Net unrealized appreciation on investments 923
--------
Total Net Assets--100.0% $215,538
========
Net Asset Value, Offering and Redemption
Price Per Share-- Class I $10.41
========
Net Asset Value and Redemption
Price Per Share-- Class A $10.39
========
Maximum Offering Price Per Share --
Class A ($10.39 / 95.75%) $10.85
========
Net Asset Value and Redemption Price
Per Share-- Class B (1) $10.43
========
12
<PAGE>
[LOGO OMITTED]
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
DESCRIPTION (000) VALUE (000)
- --------------------------------------------------------------------------------
(1) CLASS B HAS A CONTINGENT DEFERRED SALES CHARGE.
COP -- CERTIFICATE OF PARTICIPATION
GO -- GENERAL OBLIGATION
MTN -- MEDIUM TERM NOTE
RB -- REVENUE BOND
SOB -- SPECIAL OBLIGATION BOND
STRIPS -- SEPARATE TRADING OF REGISTERED INTEREST AND PRINCIPAL OF SECURITIES.
THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS REPRESENTS THE
SECURITY'S EFFECTIVE YIELD AT PURCHASE.
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING CREDIT SUPPORT FOR CERTAIN
SECURITIES AS DEFINED IN THE STATEMENT OF NET ASSETS:
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
FGIC -- FINANCIAL GUARANTY INSURANCE COMPANY
MBIA -- MUNICIPAL BOND INVESTORS ASSURANCE
NEW JERSEY MUNICIPAL SECURITIES FUND
- --------------------------------------------------------------------------------
MUNICIPAL BONDS--98.2%
FLORIDA--0.4%
Dade County, Education Facilities
Authority, University of Miami
Project (RB) (MBIA)
7.650%, 04/01/10 $500 $ 538
--------
GUAM--0.5%
Guam Government, Water System (RB)
6.850%, 07/01/99 375 387
6.950%, 07/01/00 250 265
--------
652
--------
MASSACHUSETTS--0.0%
State, Housing Finance Agency,
Single Family Home Project,
Series 21 (RB) (AMT)
6.500%, 12/01/10 60 64
--------
NEW JERSEY--93.2%
Atlantic County (GO) (MBIA)
5.400%, 12/01/04 200 213
5.400%, 12/01/05 400 424
Atlantic County, Improvement
Authority, Convention Center
Project (RB) (MBIA)
7.375%, 07/01/10 400 487
Bayonne (GO) (AMBAC)
6.200%, 07/15/01 300 319
Bayonne (GO) (FGIC)
5.900%, 05/01/05 150 163
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
DESCRIPTION (000) VALUE (000)
- --------------------------------------------------------------------------------
Bayonne, Municipal Authority,
Water Systems (RB) (MBIA)
5.000%, 01/01/12 $500 $ 506
Bedminster Township (GO)
4.750%, 03/01/10 820 827
Bergen County (GO)
6.350%, 01/15/99 240 244
5.125%, 06/15/05 250 264
Bergen County, Water Pollution
Authority (RB) (FGIC)
4.750%, 12/15/15 900 876
Bergen County, General
Improvement Bonds (GO)
5.250%, 08/15/00 300 308
4.700%, 07/15/02 400 409
Bergen County, Utilities Authority,
Series A (RB) (FGIC)
6.100%, 06/15/04 500 546
Branchburg Township (GO)
4.600%, 04/01/10 200 199
4.650%, 04/01/11 200 198
Brick Township, Municipal Utilities
Authority (RB) (FGIC)
4.000%, 12/01/98 300 300
Bridgeton (GO) (AMBAC)
5.000%, 01/01/05 300 306
Bridgewater & Raritan (GO)
6.125%, 05/01/05 200 217
6.125%, 05/01/06 100 108
Burlington County (GO)
5.200%, 10/01/07 700 727
Camden (GO) (AMBAC)
7.750%, 08/01/99 200 208
Camden (GO) (FSA)
4.300%, 10/01/00 300 303
Camden, Board of Education
(GO) (FSA)
5.000%, 10/01/05 310 323
Camden County (GO) (FGIC)
5.000%, 02/01/04 200 208
5.000%, 02/01/08 500 519
Camden County (GO) (MBIA)
5.600%, 06/01/03 200 210
Camden County, Health Systems,
Catholic Health East, Series B
(RB) (AMBAC)
5.000%, 11/15/18 500 494
Cape May County (GO) (FGIC)
6.950%, 10/15/98 250 252
Cape May County, Municipal
Utilities Authority (RB) (AMBAC)
5.000%, 08/01/03 800 829
13
<PAGE>
Statement of Net Assets
NEW JERSEY MUNICIPAL SECURITIES FUND (CONTINUED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Clifton (GO) (AMBAC)
6.800%, 10/01/98 $ 250 $ 252
Clinton Township (GO)
7.350%, 08/01/01 300 328
Clinton Township (GO) (FGIC)
5.000%, 02/15/11 250 254
Delaware River & Bay
Authority (RB) (FGIC)
5.350%, 01/01/14 1,000 1,040
Delaware River, Pennsylvania &
New Jersey Port Authority
(RB) (FGIC)
5.450%, 01/01/12 250 264
5.400%, 01/01/13 1,000 1,047
Dover Township (GO) (AMBAC)
6.000%, 10/15/03 200 217
Edgewater Borough (GO) (MBIA)
5.100%, 09/15/00 300 307
Edison Township (GO) (AMBAC)
4.800%, 01/01/05 300 309
Edison Township (GO)
5.700%, 12/01/99 100 103
6.500%, 06/01/00 500 522
5.400%, 06/01/02 250 261
Edison Township (GO) (AMBAC)
4.500%, 01/01/02 500 507
Elizabeth (GO) (FGIC)
4.300%, 07/15/99 100 101
7.900%, 12/01/99 240 254
4.625%, 07/15/03 200 204
Elizabeth, Additional School
Building Aid (GO)
9.000%, 03/01/01 150 169
Elizabeth, School Board (GO) (MBIA)
7.000%, 03/15/04 250 284
Essex County (GO) (FSA)
6.300%, 12/01/01 300 324
Essex County (GO) (MBIA)
4.750%, 07/15/07 200 206
Essex County, Improvement
Authority (RB) (AMBAC)
4.875%, 12/01/02 300 309
5.000%, 12/01/08 250 260
Essex County, Jail &
Youth Housing (RB)
6.500%, 12/01/06 345 395
Essex County, Orange
School District (RB)
5.550%, 12/01/04 150 160
Essex County, Pre-Refunded
@ 101 (GO) (AMBAC) (A)
6.050%, 02/01/99 145 148
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Essex County, Property &
Equipment (RB)
5.850%, 12/01/03 $ 300 $ 318
Essex County, Series A
(GO) (MBIA)
4.600%, 10/01/03 200 204
Essex County, Series B (GO)
6.850%, 12/15/98 215 216
Essex County, Utilities Authority,
Solid Waste Revenue (RB) (FSA)
5.000%, 04/01/04 250 259
Evesham Township (GO) (FGIC)
5.000%, 09/15/12 500 507
Fair Lawn (GO)
6.500%, 04/01/99 200 204
Fair Lawn, Water Revenue (RB)
6.500%, 04/01/99 200 204
Fort Lee (GO)
4.850%, 02/01/02 250 257
Franklin Township (GO)
5.600%, 11/01/05 400 426
Galloway Township (GO) (AMBAC)
5.000%, 12/15/09 350 362
Gloucester County (GO)
7.000%, 07/01/98 250 250
Gloucester County (GO) (AMBAC)
5.000%, 09/01/03 500 512
Gloucester County, General
Improvement, Series A
(GO) (AMBAC)
4.500%, 01/01/03 200 202
Gloucester County, Improvement
Authority, Landfill Project,
Series A (RB)
6.000%, 09/01/06 300 319
Gloucester County, Solid Waste
Resource Revenue (RB) (AMT)
8.375%, 07/01/10 1,175 1,179
Gloucester County, Utilities
Authority (RB) (AMBAC)
4.800%, 03/01/02 300 306
Greenwich Township (GO) (FSA)
5.000%, 01/15/13 500 503
5.000%, 01/15/14 800 803
Hackensack (GO)
6.100%, 06/01/05 250 266
6.100%, 06/01/07 250 266
Hackensack Meadowlands (RB)
7.125%, 06/01/02 500 534
Hackettstown, Municipal Utilities
Authority, Series F (RB) (FGIC)
5.050%, 10/01/04 500 520
14
<PAGE>
[LOGO OMITTED]
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
DESCRIPTION (000) VALUE (000)
- --------------------------------------------------------------------------------
Hillsborough Township, Board of
Education (COP) (FSA)
5.500%, 12/15/99 $ 250 $ 256
Hudson County (GO) (FGIC)
6.250%, 11/01/99 200 207
Hudson County, New Jersey
College, Series C (GO)
4.600%, 10/01/01 180 182
Hudson County, Utility
Authority (RB)
11.875%, 07/01/06 285 348
Jersey City (GO)
6.500%, 02/15/03 370 404
5.500%, 03/15/14 1,000 1,061
Jersey City, Redevelopment Authority,
Dixon Mill Apartments (RB)
6.100%, 05/01/12 65 67
Jersey City, Water Utility (RB)
7.250%, 01/01/99 400 407
Kearny (GO) (FGIC)
4.300%, 02/15/01 500 504
5.250%, 02/15/08 1,000 1,065
Livingston Township, Board
of Education (RB)
6.375%, 11/01/00 100 105
Long Branch, Sewer Authority
(RB) (FGIC)
4.900%, 06/01/02 300 308
5.200%, 06/01/05 500 524
5.250%, 06/01/06 200 210
Madison (RB)
7.125%, 08/01/98 250 251
Mercer County, Improvement
Authority (RB)
4.250%, 12/01/00 500 505
Mercer County, Improvement
Authority (RB) (MBIA)
6.000%, 06/01/04 250 266
Mercer County, Improvement
Authority, Ewing Board of
Education Project (RB) (MBIA)
6.300%, 05/15/07 250 274
Mercer County, Improvement
Authority, Hamilton Board of
Education Project (RB) (MBIA)
5.500%, 06/01/01 200 208
4.900%, 12/15/05 150 155
Mercer County, Sewer Improvement
Authority, Regional Sludge
Project (FGIC)
6.550%, 12/15/98 500 507
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Middlesex County (GO)
5.000%, 10/01/05 $ 500 $ 524
Middlesex County, Improvement
Authority (RB)
4.375%, 07/01/03 250 253
Middlesex County, Property
Tax (GO)
5.800%, 10/01/10 500 542
Middlesex County, Utility
Authority (RB) (FGIC)
6.100%, 03/15/00 200 207
5.000%, 12/01/12 400 403
Middletown Township, Sewer
Authority, Series A (RB) (FGIC)
4.900%, 01/01/05 800 819
Monmouth County (GO)
4.400%, 09/01/03 200 203
Monmouth County (RB)
4.750%, 07/15/03 200 205
Monmouth County (RB) (MBIA)
4.400%, 12/01/02 250 253
5.125%, 12/01/16 500 504
Monmouth County, Improvement
Authority (RB) (FSA)
5.450%, 07/15/13 850 888
Monmouth County, Improvement
Authority (RB) (MBIA)
5.000%, 12/01/08 250 261
Monmouth County, Improvement
Authority, Howell Township
Education Project (RB)
5.750%, 07/01/01 540 570
Moorestown Township (GO)
5.000%, 02/01/12 150 152
5.000%, 02/01/15 150 151
Moorestown Township (GO) (AMBAC)
6.000%, 09/01/07 300 324
Morris County (GO)
5.000%, 07/15/13 800 808
Morristown (GO) (FSA)
5.500%, 08/01/01 100 104
Mount Laurel Township (GO)
4.650%, 08/01/05 500 506
New Brunswick (GO)
4.700%, 09/15/09 500 501
New Brunswick (GO) (FGIC)
6.400%, 07/15/03 400 425
New Brunswick, Parking
Authority (RB) (FGIC)
4.300%, 09/01/99 300 302
New Jersey Building Authority (RB)
5.000%, 06/15/11 200 204
15
<PAGE>
Statement of Net Assets
NEW JERSEY MUNICIPAL SECURITIES FUND (CONTINUED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
New Jersey Building Authority
(RB) (MBIA)
5.000%, 06/15/18 $1,000 $ 995
New Jersey Economic
Development Authority (RB)
7.400%, 12/01/09 200 203
New Jersey Environmental Infrastructure
Wastewater Treatment (RB)
5.000%, 09/01/10 1,000 1,045
5.000%, 09/01/14 1,000 1,005
New Jersey Health Care
(RB) (AMBAC)
5.000%, 07/01/16 1,000 991
New Jersey Health Care (RB) (MBIA)
5.200%, 07/01/18 500 504
New Jersey Infrastructure Trust (RB)
5.000%, 05/01/11 500 511
New Jersey Infrastructure
Trust (RB) (FGIC)
5.000%, 04/01/11 450 462
New Jersey Sports & Exposition
Authority, State Guaranteed (RB)
8.300%, 01/01/03 380 444
New Jersey Sports & Exposition
Authority Convention
Center (RB) (MBIA)
5.900%, 07/01/03 300 323
New Jersey Transportation Authority,
Series A (RB) (FSA)
5.000%, 06/15/18 1,000 995
New Jersey Wastewater Trust (RB)
5.000%, 09/01/17 400 394
Newark (GO) (AMBAC)
7.375%, 10/01/00 250 266
Newark, Board of Education
(GO) (MBIA)
5.875%, 12/15/11 370 401
Newark, Housing Finance, Fairview
& Lock Street Project (RB)
6.150%, 02/01/13 495 527
Newark, Qualified Bond Act
(GO) (MBIA)
5.300%, 09/01/14 500 516
Newark, Water Utility (GO) (MBIA)
5.500%, 10/01/14 475 501
North Bergen Township (GO) (MBIA)
4.400%, 08/01/01 500 506
North Bergen Township, Municipal
Utilities Authority (RB) (FGIC)
4.800%, 12/15/03 300 309
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
North Bergen Township, Utilities
Authority (RB) (FGIC)
4.700%, 12/15/02 $ 300 $ 306
North Brunswick Township (GO)
5.000%, 05/15/12 1,000 1,016
North Brunswick Township
(GO) (FGIC)
5.000%, 02/01/10 750 773
North Jersey District, Water Supply,
Wanaque North Project,
Series A (RB) (MBIA)
4.875%, 11/15/09 250 256
5.000%, 11/15/10 500 515
North Jersey District, Water Supply,
Wanaque North Project,
Series B (RB) (MBIA)
5.600%, 11/15/98 300 302
North Jersey District, Water Supply,
Wanaque South Project (RB) (MBIA)
5.400%, 07/01/02 300 313
5.500%, 07/01/03 200 212
Ocean City (GO)
6.750%, 07/13/99 500 515
8.700%, 05/15/00 250 271
Ocean County (GO)
7.000%, 08/15/00 100 106
4.600%, 11/01/03 500 511
5.800%, 09/01/10 500 531
Ocean Township (GO) (MBIA)
5.400%, 06/01/15 250 258
Old Tappan, Board of Education
(GO) (FGIC)
5.100%, 04/01/18 500 499
Paramus, School District (GO) (FSA)
5.100%, 05/01/16 500 504
Parsippany Troy Hills
Township (GO)
4.500%, 02/01/01 800 809
4.600%, 02/01/02 100 102
4.700%, 12/01/03 500 513
4.700%, 12/01/04 400 410
Parsippany Troy Hills
Township (GO) (MBIA)
5.000%, 12/01/15 500 503
Passaic County (GO)
4.700%, 09/01/03 250 255
Passaic County (GO) (FGIC)
4.750%, 09/01/04 500 514
5.550%, 04/01/09 250 263
5.125%, 09/01/13 500 509
16
<PAGE>
[LOGO OMITTED]
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
DESCRIPTION (000) VALUE (000)
- --------------------------------------------------------------------------------
Passaic County (GO) (MBIA)
4.350%, 05/01/03 $ 200 $ 202
4.450%, 05/01/04 200 203
Passaic County, Board of
Education (GO)
9.400%, 09/01/02 150 180
Passaic County, Cash Flow
Management Project (GO)
6.400%, 11/15/01 300 321
Paterson (GO)
6.350%, 02/15/03 235 255
Paterson, School Board (GO)
7.400%, 08/01/00 250 267
Pequannock-Lincoln Park,
Sewer Authority (RB) (MBIA)
4.400%, 12/01/02 500 505
Perth Amboy (GO) (FSA)
6.200%, 09/01/00 300 314
6.400%, 09/01/02 300 326
Point Pleasant (GO) (MBIA)
5.450%, 12/01/00 200 207
Port Authority of New York &
New Jersey (RB)
5.300%, 08/01/03 300 314
Port Authority of New York &
New Jersey (RB) (AMBAC)
5.200%, 07/15/17 1,000 1,009
Port Authority of New York &
New Jersey (RB) (MBIA)
4.700%, 12/01/11 400 397
Princeton (GO)
4.400%, 09/01/01 300 304
Rahway (GO)
9.300%, 02/01/01 150 169
Rahway Valley, Sewer Authority (RB)
6.200%, 04/01/01 210 211
Randolph Township, School
District (GO) (FGIC)
5.000%, 08/01/15 500 498
Roselle (GO) (MBIA)
4.750%, 10/15/04 700 721
Roxbury (COP)
5.000%, 10/15/00 250 255
Rutgers State University, Series A (RB)
4.375%, 05/01/01 500 504
Rutgers State University, Series S (RB)
5.000%, 05/01/04 500 518
Rutgers State University, Series U (RB)
5.000%, 05/01/14 500 501
Sayreville (GO) (MBIA)
10.125%, 12/01/00 250 285
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Secaucus, Municipal Utility
Authority, Sewer Project,
Series A (RB)
5.650%, 12/01/04 $ 200 $ 216
5.750%, 12/01/05 385 420
Somerset County (GO)
4.450%, 12/01/01 170 173
5.000%, 10/01/02 200 208
4.450%, 12/01/02 500 508
4.350%, 12/01/04 600 606
Somerset Raritan Valley, Sewer
Improvement Authority, Series H (RB)
5.150%, 07/01/01 300 310
South Brunswick Township (GO)
7.125%, 07/15/98 100 100
6.300%, 04/01/04 250 273
South Jersey, Transportation
Authority, Transportation
Systems, Series B (RB) (MBIA)
5.500%, 11/01/02 250 263
State (COP) (AMBAC)
5.000%, 06/15/14 500 501
State (GO)
5.100%, 02/15/00 1,200 1,223
5.300%, 02/15/02 850 884
7.000%, 04/01/02 250 270
6.400%, 09/15/02 250 268
5.400%, 02/15/03 300 316
State, Building Authority (RB)
9.625%, 02/01/03 230 267
4.700%, 06/15/06 250 255
5.000%, 06/15/11 300 305
State, Casino Reinvestment
Development Authority (RB) (FSA)
5.000%, 10/01/04 1,000 1,038
5.250%, 10/01/09 1,000 1,051
5.250%, 10/01/13 500 512
5.250%, 10/01/14 1,000 1,020
State, Economic Development
Authority (RB)
4.900%, 08/15/04 200 208
5.600%, 10/01/12 500 499
5.700%, 10/01/17 1,000 1,003
State, Economic Development
Authority, Health Village 1996
Project (RB)
6.000%, 05/01/09 200 211
State, Economic Development Authority,
Saint Barnabas Project,
Series A (RB) (MBIA)
4.875%, 07/01/05 500 512
17
<PAGE>
Statement of Net Assets
NEW JERSEY MUNICIPAL SECURITIES FUND (CONTINUED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
State, Economic Development
Authority, Series A (RB) (MBIA)
5.125%, 07/01/00 $ 300 $ 306
5.400%, 07/01/02 300 313
State, Economic Development
Authority, Series J (RB)
7.100%, 12/01/11 405 440
State, Educational Facilities
Authority (RB)
5.000%, 07/01/21 1,500 1,489
State, Educational Facilities Authority,
Drew University Issue,
Series B (RB)
5.750%, 07/01/02 360 378
State, Educational Facilities Authority,
Glassboro State College (RB)
6.750%, 07/01/09 300 301
State, Educational Facilities Authority,
Medicine & Dentistry,
Series B (RB) (AMBAC)
5.000%, 12/01/07 250 259
State, Educational Facilities Authority,
Rowan College (RB) (MBIA)
5.050%, 07/01/03 300 311
State, Educational Facilities Authority,
Rowan College, Series C (RB) (MBIA)
5.250%, 07/01/05 300 315
State, Educational Facilities Authority,
Series A (RB) (AMBAC)
5.125%, 09/01/06 300 313
State, Educational Facilities Authority,
Stockton State College,
Series B (RB) (AMBAC)
6.200%, 07/01/04 300 325
State, Equipment Series A (COP)
6.000%, 10/01/00 300 312
State, Health Care Facilities Authority,
Atlantic City Medical
Center (RB) (AMBAC)
5.000%, 07/01/02 300 309
State, Health Care Facilities Authority,
Chilton Memorial Hospital (RB)
6.550%, 07/01/03 300 326
State, Health Care Facilities Authority,
Hackensack Medical
Center (RB) (MBIA)
5.100%, 07/01/03 500 520
State, Health Care Facilities Authority,
JFK Health Systems (RB) (FGIC)
4.600%, 07/01/05 250 252
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
State, Health Care Facilities
Authority, Mountain Side
Hospital (RB) (FGIC)
6.000%, 07/01/00 $300 $ 312
State, Health Care Facilities
Authority, Shore Memorial
Healthcare Systems (RB) (FGIC)
4.800%, 07/01/03 200 205
State, Health Care Facilities
Financing Authority (RB)
6.800%, 08/01/19 3,380 3,612
State, Health Care Facilities
Financing Authority,
Pre-Refunded @ 102 (RB) (A)
6.800%, 02/01/01 425 462
State, Health Care Facilities
Memorial, Health Alliance,
Series A (RB) (FGIC)
6.600%, 07/01/99 145 149
State, Health Care Facilities,
Society of Vy, Hospital
Revenue (RB) (MBIA)
6.500%, 07/01/98 250 250
State, Health Care Facilities,
St. Peters Medical Center,
Series F (RB) (MBIA)
5.000%, 07/01/13 100 100
State, Higher Education Assistance
Authority, Series A (RB)
6.850%, 01/01/01 115 121
6.900%, 01/01/02 535 570
5.800%, 01/01/03 250 260
5.550%, 07/01/06 455 476
5.800%, 07/01/08 355 371
5.900%, 01/01/09 570 596
5.900%, 07/01/09 360 377
State, Highway Authority,
Garden State Parkway (RB)
5.300%, 01/01/99 250 252
6.750%, 01/01/99 100 101
State, Hillcrest Health Project
(RB) (AMBAC)
4.600%, 01/01/02 200 203
5.000%, 01/01/07 300 310
State, Housing & Mortgage Finance
Agency (RB) (AMBAC)
5.300%, 05/01/06 325 344
State, Housing & Mortgage Finance
Agency, Section 8 (RB)
6.000%, 11/01/02 760 796
18
<PAGE>
[LOGO OMITTED]
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
DESCRIPTION (000) VALUE (000)
- --------------------------------------------------------------------------------
State, Housing & Manufacturing
Agency, Series A (RB) (MBIA)
7.100%, 10/01/98 $ 100 $ 101
State, Housing & Mortgage
Authority (RB)
6.300%, 05/01/02 470 499
6.400%, 05/01/02 520 552
State, Housing & Mortgage
Finance Agency, Home Buyer,
Series N (RB) (MBIA)
4.950%, 04/01/04 110 114
5.200%, 04/01/06 500 536
5.800%, 10/01/20 890 911
State, Housing & Mortgage
Finance Agency, Home Mortgage,
Series A (RB) (MBIA)
7.200%, 10/01/99 300 307
State, Housing Finance Authority (RB)
5.100%, 11/01/00 500 502
State, Montclair State University,
Series C (RB) (AMBAC)
5.375%, 07/01/08 1,285 1,372
State, New York & New Jersey
Port Authority (RB)
6.800%, 07/15/08 250 267
State, Raritan Overpass
Project (RB)
4.300%, 08/01/01 1,000 1,009
State, Series A (COP)
6.100%, 10/01/01 1,165 1,236
State, Series E (GO)
5.000%, 07/15/04 100 104
State, South Orange & Maplewood
School District (GO)
6.125%, 11/01/01 150 160
State, Sports & Exposition Authority,
Convention Center Luxury Tax,
Series A (RB) (MBIA)
5.600%, 07/01/01 175 182
State, Sports & Exposition Authority,
Series A (RB)
5.000%, 09/01/06 515 534
State, Stateon Willingboro Township
(GO) (MBIA)
6.300%, 07/01/99 400 410
State, Transportation Authority
(RB) (MBIA)
5.000%, 06/15/15 1,500 1,502
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
State, Transportation Authority,
Series A (RB)
4.625%, 06/15/02 $ 300 $ 306
State, Transportation Authority,
Series A (RB) (FSA)
5.300%, 12/15/01 200 208
State, Transportation Authority,
Series A (RB) (MBIA)
4.500%, 12/15/02 450 456
5.500%, 06/15/11 750 790
State, Transportation Authority,
Series B (RB) (MBIA)
5.200%, 06/15/06 1,850 1,931
State, Transportation System,
Series A (RB) (AMBAC)
5.200%, 12/15/00 200 206
State, Transportation Trust
Authority, Transportation
System, Series A (RB)
4.600%, 06/15/01 500 508
State, Transportation Trust Authority,
Transportation System,
Series A (RB) (MBIA)
4.625%, 06/15/02 500 510
5.500%, 06/15/13 500 524
State, Turnpike Authority (RB)
6.400%, 01/01/02 300 320
10.375%, 01/01/03 485 561
State, Turnpike Authority,
Series A (RB) (AMBAC)
5.900%, 01/01/04 500 529
6.400%, 01/01/07 1,485 1,578
State, Union County (GO)
4.400%, 10/01/05 500 504
State, Union County, Improvement
Authority (RB)
4.700%, 11/01/05 250 257
State, University Medicine &
Dentistry, Series E (RB)
6.200%, 12/01/03 500 540
State, Warren County, Pollution
Control Finance Authority
(RB) (MBIA)
6.550%, 12/01/06 300 330
State, Washington Township,
Board of Education (GO) (MBIA)
5.000%, 02/01/03 500 520
19
<PAGE>
Statement of Net Assets
NEW JERSEY MUNICIPAL SECURITIES FUND (CONTINUED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
State, Wastewater Treatment
Authority (RB) (AMBAC)
4.250%, 03/01/00 $500 $ 502
State, Wastewater Treatment
Trust (RB)
6.875%, 06/15/04 25 27
6.000%, 07/01/10 965 1,019
State, Wastewater Treatment
Trust (RB) (AMBAC)
4.600%, 03/01/07 450 452
State, Wastewater Treatment Trust,
Series A (RB)
5.000%, 09/01/06 450 468
State, West New York Municipal
Utilities (RB) (FGIC) (B)
8.895%, 12/15/02 300 249
State, Westfield School District (GO)
6.650%, 08/01/98 400 401
State, Woodbridge Township,
Pre-Refunded @ 101 (RB) (A)
6.800%, 08/01/00 250 266
State, Woodbridge Township,
Series A (GO)
4.650%, 09/15/05 100 102
State, Woodbridge Township,
Series C (GO)
4.650%, 09/15/05 100 102
Stony Brook, Sewer Authority (RB)
4.500%, 12/01/00 500 507
Union County (GO)
4.400%, 09/01/01 500 506
4.400%, 10/01/04 500 506
5.750%, 02/01/05 100 107
Union County, Environmental
Improvement Authority (RB)
4.900%, 04/01/02 350 360
5.150%, 04/01/05 500 524
Union County, Improvement
Authority (RB)
4.350%, 03/01/01 125 126
5.050%, 03/01/08 125 132
Union County, Improvement
Authority, County Granted
Capital Equipment Lease (RB)
4.375%, 11/01/02 200 203
Vineland, Additional State School
Building Aid (GO)
8.500%, 05/01/01 100 112
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Wanaque Valley, Sewer Authority,
Series B (RB) (AMBAC)
5.100%, 09/01/03 $300 $ 312
Warren County, Municipal Utility
Authority, Wastewater
Treatment Project (RB)
5.050%, 12/01/04 225 234
Warren County, Pollution Control
Finance Authority,
Series B (RB) (MBIA)
5.700%, 12/01/03 300 320
Warren County, Pollution Control
Finance Authority, Resource
Recovery Project (RB) (MBIA)
6.150%, 12/01/02 210 227
Warren Hills, Regional School
District Authority,
Pre-Refunded @ 100 (COP) (A)
7.100%, 06/15/99 230 237
Washington Township (GO) (MBIA)
5.000%, 02/01/06 250 258
Washington Township, Board of
Education Authority (MBIA)
7.500%, 09/01/00 500 537
Washington Township, Fire District
Authority (GO) (FGIC)
4.700%, 01/01/06 300 306
Wayne Township (GO)
5.450%, 10/01/04 250 258
West Windsor Township (GO)
6.000%, 10/15/05 200 209
Woodbridge Township, Sewer Utility
Authority, Series B (GO)
4.250%, 09/15/01 250 251
5.000%, 09/15/10 250 254
--------
135,588
--------
NEW MEXICO--0.1%
State, Educational Assistance Bonds,
Series A (RB) (AMBAC)
6.700%, 04/01/02 200 210
--------
NORTH DAKOTA--0.1%
State, Housing Finance Agency (RB)
6.000%, 07/01/18 180 185
--------
20
<PAGE>
[LOGO OMITTED]
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
DESCRIPTION (000) VALUE (000)
- --------------------------------------------------------------------------------
PUERTO RICO--2.9%
Puerto Rico, Electric Power
Authority (RB) (MBIA)
4.900%, 07/01/05 $1,000 $ 1,039
Puerto Rico, Electric Power
Authority, Series V (RB)
5.600%, 07/01/03 80 86
Puerto Rico, Electric Power
Authority, Series Y (RB) (MBIA)
6.500%, 07/01/06 500 573
Puerto Rico, Housing Banking &
Finance Agency, Single Family
Mortgage Project (RB)
7.100%, 12/01/99 220 222
Puerto Rico, Housing Revenue (RB)
7.100%, 06/01/99 65 66
Puerto Rico, Public Buildings
Authority, Series A (RB) (AMBAC)
4.500%, 07/01/01 200 203
Puerto Rico, Telephone Authority,
Series M (RB)
5.000%, 01/01/02 500 513
5.400%, 01/01/08 260 271
Puerto Rico, Telephone Authority,
Series M (RB) (AMBAC)
5.050%, 01/01/04 590 617
Puerto Rico, Telephone Authority,
Series N (RB)
5.100%, 01/01/04 395 409
Puerto Rico, Tourist &
Environmental Authority (RB)
5.250%, 08/01/06 200 211
--------
4,210
--------
TEXAS--0.7%
Abilene, Higher Education Authority,
Series B (RB)
5.600%, 07/01/04 500 524
Brazos, Higher Education Authority,
Series C1 (RB)
5.700%, 06/01/04 450 473
--------
997
--------
WISCONSIN--0.3%
State, Housing & Economic
Development Authority, Home
Ownership Project (RB)
6.500%, 09/01/22 380 399
--------
Total Municipal Bonds
(Cost $138,019) 142,843
--------
- --------------------------------------------------------------------------------
FACE AMOUNT/ MARKET
DESCRIPTION SHARES (000) VALUE (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENT--0.6%
Federated New Jersey
Municipal Cash Trust $931 $ 931
--------
Total Cash Equivalent
(Cost $931) 931
--------
Total Investments--98.8%
(Cost $138,950) 143,774
--------
OTHER ASSETS AND LIABILITIES, NET--1.2% 1,770
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 11,663,999 outstanding shares
of beneficial interest 122,167
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 1,716,743 outstanding shares
of beneficial interest 18,392
Accumulated net realized gain on investments 161
Net unrealized appreciation on investments 4,824
--------
Total Net Assets--100.0% $145,544
========
Net Asset Value, Offering and Redemption
Price Per Share-- Class I $10.88
========
Net Asset Value and Redemption Price
Per Share -- Class A $10.85
========
Maximum Offering Price Per Share --
Class A ($10.85 / 97%) $11.19
========
(A) PRE-REFUNDED SECURITY -- THE MATURITY DATE SHOWN IS THE PRE-REFUNDED DATE.
(B) ZERO COUPON BOND -- THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
REPRESENTS THE SECURITY'S EFFECTIVE YIELD AT PURCHASE.
AMT -- ALTERNATIVE MINIMUM TAX
COP -- CERTIFICATE OF PARTICIPATION
GO -- GENERAL OBLIGATION
RB -- REVENUE BOND
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING CREDIT SUPPORT
FOR CERTAIN SECURITIES AS DEFINED IN THE STATEMENT OF NET ASSETS:
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
FGIC -- FINANCIAL GUARANTY INSURANCE COMPANY
FSA -- FINANCIAL SECURITIES ASSURANCE
MBIA -- MUNICIPAL BOND INVESTORS ASSURANCE
21
<PAGE>
Statement of Net Assets
INTERMEDIATE-TERM GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS--64.6%
U.S. Treasury Notes
7.500%, 10/31/99 $ 500 $ 512
7.750%, 11/30/99 700 721
7.750%, 12/31/99 500 516
5.875%, 02/15/00 1,000 1,005
5.500%, 02/29/00 750 750
7.125%, 02/29/00 550 564
6.875%, 03/31/00 1,300 1,329
5.500%, 05/31/00 1,900 1,899
5.875%, 06/30/00 500 503
5.750%, 10/31/00 1,500 1,507
5.625%, 11/30/00 1,400 1,403
6.250%, 04/30/01 700 713
6.625%, 06/30/01 1,000 1,029
6.500%, 08/31/01 2,000 2,054
6.125%, 12/31/01 1,000 1,017
6.250%, 01/31/02 1,000 1,022
6.250%, 02/28/02 1,000 1,022
6.250%, 06/30/02 2,000 2,049
5.500%, 01/31/03 1,750 1,747
5.500%, 02/28/03 1,000 998
5.500%, 05/31/03 1,000 999
--------
Total U.S. Treasury Obligations
(Cost $23,000) 23,359
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS--33.5%
Federal Home Loan Bank
6.150%, 10/23/00 1,000 1,000
7.000%, 12/04/02 1,000 1,017
7.385%, 09/11/03 1,000 1,003
6.220%, 06/15/05 1,000 1,006
7.190%, 09/10/07 800 801
Federal Home Loan
Mortgage Corporation
7.195%, 07/30/01 1,000 1,003
7.055%, 08/02/01 1,000 1,014
7.125%, 09/24/03 1,000 1,002
Federal National
Mortgage Association
6.900%, 01/22/02 500 503
6.250%, 01/13/03 1,000 999
7.370%, 05/14/03 750 761
7.000%, 08/19/04 1,000 1,001
7.600%, 05/24/06 1,000 1,016
--------
Total U.S. Government Agency Obligations
(Cost $12,046) 12,126
--------
CASH EQUIVALENT--1.0%
SEI Liquid Asset Trust--
Government Portfolio 373 373
--------
Total Cash Equivalent
(Cost $373) 373
--------
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Total Investments--99.1%
(Cost $35,419) $ 35,858
--------
OTHER ASSETS AND LIABILITIES, NET--0.9% 315
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 3,397,230 outstanding shares of
beneficial interest 35,688
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 126,786 outstanding shares of
beneficial interest 1,541
Undistributed net investment income 5
Accumulated net realized loss on investments (1,500)
Net unrealized appreciation on investments 439
--------
Total Net Assets--100.0% $ 36,173
========
Net Asset Value, Offering and Redemption
Price Per Share-- Class I $10.26
========
Net Asset Value and Redemption Price
Per Share -- Class A $10.26
========
Maximum Offering Price Per Share --
Class A ($10.26 / 96%) $10.69
========
PENNSYLVANIA MUNICIPAL SECURITIES FUND
- --------------------------------------------------------------------------------
MUNICIPAL BONDS--98.2%
PENNSYLVANIA--96.4%
Allegheny County, Hospital
Development Authority
(RB) (MBIA)
5.600%, 04/01/13 $ 500 527
Allegheny County, Hospital
Development Authority,
Pittsburgh Mercy Health
System (RB) (AMBAC)
5.500%, 08/15/10 425 459
Allegheny County, International
Airport (RB) (MBIA)
5.000%, 01/01/17 750 745
Altoona, City Authority, Water
Revenue (RB) (FGIC)
5.050%, 11/01/11 500 509
Beaver County (GO) (MBIA)
5.150%, 10/01/17 1,000 1,002
Bethlehem, Penn School
District (GO) (FGIC)
4.850%, 09/01/10 250 252
22
<PAGE>
[LOGO OMITTED]
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
DESCRIPTION (000) VALUE (000)
- --------------------------------------------------------------------------------
Bucks County, Water and Sewer
Authority (RB) (FGIC)
5.375%, 12/01/13 $1,000 $1,017
Butler County (GO) (FGIC)
6.000%, 07/15/12 300 316
Chester County, Health and Education
Facilities Authority, Main Line
Health Systems, Series A (RB)
5.400%, 05/15/09 500 518
Chester County, Health and Education
Facilities Authority, Jefferson Health
Systems, Series B (RB)
5.375%, 05/15/27 1,000 1,001
Chester Upland, School
Authority (RB)
6.375%, 09/01/02 505 547
Conestoga Valley, School
District (GO) (FGIC)
7.000%, 05/01/06 250 268
Dauphin County, School
District (GO) (A)
5.750%, 12/02/98 450 481
Erie County (GO) (FGIC)
5.250%, 09/01/12 95 97
Erie-Penn, Sewer Authority
(RB) (AMBAC)
5.000%, 06/01/18 450 443
Fairview, Penn School District
(GO) (FGIC)
5.050%, 02/15/11 260 264
Fort Cherry, School District
(GO) (AMBAC)
5.200%, 10/01/12 1,000 1,014
Franklin County, Industrial
Development Authority
(RB) (AMBAC)
5.000%, 07/01/18 500 489
Harrisburg (RB) (MBIA)
5.600%, 09/15/11 575 609
Lancaster County, Cocalico School
District (GO) (MBIA)
6.000%, 02/15/15 200 215
Lancaster County, Hospital
Authority, Lancaster General
Hospital Project (RB) (AMBAC)
6.300%, 07/01/02 585 631
Lancaster County, Hospital Authority,
Masonic Homes Project (RB)
4.900%, 11/15/03 115 118
Lycoming County, Hospital
Authority (RB)
5.375%, 11/15/10 500 526
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Montgomery County, Abington
Memorial Hospital (RB) (AMBAC)
4.875%, 06/01/18 $ 500 $ 484
Moon Township, Municipal
Authority, Water and Sewer (RB)
3.875%, 12/01/02 3 3
North Allegheny, School District,
Series A (GO) (AMBAC)
6.000%, 11/01/03 250 267
Northeastern Pennsylvania, Hospital
and Educational Revenue
(RB) (AMBAC)
5.250%, 01/01/26 1,000 1,004
Penn-Trafford, School District
(GO) (AMBAC)
5.000%, 05/01/07 1,000 1,039
4.800%, 05/01/15 1,000 974
Philadelphia, Authority for
Industrial Development (RB)
5.500%, 07/01/10 250 262
5.250%, 07/01/17 1,250 1,255
Philadelphia, Authority for Industrial
Development, National Board
of Medical Examiners Project (RB)
6.500%, 05/01/05 325 351
Philadelphia, Hospital and Higher
Education Facilities Authority,
Children's Hospital Project,
Series A (RB)
5.375%, 02/15/14 500 508
Philadelphia, Hospital Authority,
Saint Agnes Medical Center Project,
Series A (RB) (MBIA)
5.000%, 07/01/05 865 867
Philadelphia, Authority for
Industrial Development
(RB) (MBIA)
4.900%, 06/01/12 820 808
Philadelphia, School District
(GO) (AMBAC)
5.375%, 04/01/27 1,200 1,215
Pittsburgh, Urban Redevelopment
Authority (RB)
5.750%, 10/01/14 100 105
Pottsville, Hospital Authority
Revenue (RB)
5.000%, 08/15/12 1,000 1,001
Reading (GO) (AMBAC)
6.000%, 11/15/02 195 195
Saint Mary Hospital Authority,
Catholic Health Initiatives (RB)
5.000%, 12/01/28 1,000 963
23
<PAGE>
Statement of Net Assets
PENNSYLVANIA MUNICIPAL SECURITIES FUND (CONTINUED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Scranton-Lackawanna, Health and
Welfare Authority (RB)
6.625%, 04/15/07 $ 60 $ 60
Southeastern Pennsylvania,
Transportation Authority (RB)
6.100%, 06/01/02 500 533
Southmoreland, School District
(GO) (AMBAC)
5.200%, 10/01/12 300 306
State, Convention Center Authority,
Series A (RB) (FSA)
6.250%, 09/01/04 550 606
State, Delaware River Joint
Toll Bridge (RB) (FGIC)
6.000%, 07/01/18 625 652
State, Higher Education Authority,
College and University Revenue
(RB) (MBIA)
5.000%, 11/01/07 500 516
State, Higher Education Authority,
Student Loan, Series A (RB) (FGIC)
6.800%, 12/01/00 750 794
State, Higher Education Authority,
University of Pennsylvania,
Series A (RB)
5.600%, 01/01/10 150 159
State, Higher Education
Facilities Authority (RB)
4.500%, 07/15/18 1,000 918
State, Higher Education Facilities
Authority, Allegheny College
(RB) (MBIA)
4.700%, 11/01/10 500 500
State, Higher Education Facilities
Authority, Drexel University
(RB) (MBIA)
4.800%, 05/01/28 1,000 949
State, Higher Education Facilities
Authority, Series G (RB) (AMBAC)
5.875%, 12/15/07 400 422
State, Hospital and Education
Authority (RB) (FSA)
5.625%, 10/01/18 500 518
State, Housing Finance
Authority (RB)
5.450%, 10/01/14 500 509
State, Housing Finance
Authority, Series 49 (RB)
5.600%, 10/01/05 75 80
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
State, Public School Building
Authority, Hazleton Area
School District Project
(RB) (FGIC)
6.100%, 03/01/02 $ 500 $ 524
State, School Building Authority,
Delaware County Community
College (RB) (MBIA)
5.200%, 04/01/08 250 258
State, Second Series (GO)
5.250%, 06/15/09 1,000 1,041
5.000%, 10/15/15 1,250 1,242
5.000%, 10/15/16 1,400 1,383
State, Series A (COP) (AMBAC)
5.200%, 07/01/05 500 516
5.000%, 07/01/15 1,000 985
State, Turnpike Commission,
Series P (RB) (AMBAC)
5.900%, 12/01/08 1,000 1,073
Washington, School District,
Series 1993-A (GO) (FGIC)
5.700%, 09/01/06 500 514
Wilkes Barre, School District
(GO) (FGIC)
5.050%, 04/01/11 185 188
--------
38,595
--------
GUAM--1.8%
Guam, Power Authority
(RB) (AMBAC)
6.000%, 10/01/09 650 717
--------
Total Municipal Bonds
(Cost $38,508) 39,312
--------
CASH EQUIVALENT--0.9%
Goldman Sachs Tax-Free
Money Market 335 335
--------
Total Cash Equivalent
(Cost $335) 335
--------
Total Investments--99.1%
(Cost $38,843) 39,647
--------
OTHER ASSETS AND LIABILITIES, NET--0.9% 372
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 3,811,078 outstanding shares
of beneficial interest 38,169
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 47,037 outstanding shares
of beneficial interest 480
24
<PAGE>
[LOGO OMITTED]
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
DESCRIPTION (000) VALUE (000)
- --------------------------------------------------------------------------------
Distributions in excess of net
investment income $ (5)
Accumulated net realized gain on investments 571
Net unrealized appreciation on investments 804
--------
Total Net Assets--100.0% $ 40,019
========
Net Asset Value, Offering and Redemption
Price Per Share-- Class I $10.37
========
Net Asset Value and Redemption Price
Per Share -- Class A $10.34
========
Maximum Offering Price Per Share --
Class A ($10.34 / 97%) $10.66
========
(A) FLOATING RATE INSTRUMENT WITH DEMAND FEATURES. THE RATE REFLECTED ON THE
STATEMENT OF NET ASSETS IS THE RATE IN EFFECT ON JUNE 30, 1998.
THE DATE SHOWN IS THE LONGER OF THE RESET DATE OR THE DEMAND DATE.
COP -- CERTIFICATE OF PARTICIPATION
GO -- GENERAL OBLIGATION
RB -- REVENUE BOND
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING CREDIT SUPPORT FOR CERTAIN
SECURITIES AS DEFINED IN THE STATEMENT OF NET ASSETS:
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
FGIC -- FINANCIAL GUARANTY INSURANCE COMPANY
FSA -- FINANCIAL SECURITIES ASSURANCE
MBIA -- MUNICIPAL BOND INVESTORS ASSURANCE
GNMA FUND
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATION--99.5%
U.S. Treasury Bill (A)
4.820%, 07/16/98 $2,550 2,545
--------
Total U.S. Treasury Obligation
(Cost $2,545) 2,545
--------
CASH EQUIVALENT--0.8%
SEI Liquid Asset Trust--
Government Portfolio 20 20
--------
Total Cash Equivalent
(Cost $20) 20
--------
Total Investments--100.3%
(Cost $2,565) 2,565
--------
OTHER ASSETS AND LIABILITIES, NET--(0.3%) (8)
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 181,646 outstanding shares
of beneficial interest 2,373
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 76,158 outstanding shares
of beneficial interest $ 919
Accumulated net realized loss on investments (735)
--------
Total Net Assets--100.0% $ 2,557
========
Net Asset Value, Offering and Redemption
Price Per Share-- Class I $9.92
========
Net Asset Value and Redemption Price
Per Share -- Class A $9.90
========
Maximum Offering Price Per Share --
Class A ($9.90 / 97%) $10.21
========
(A) THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS REPRESENTS THE SECURITY'S
DISCOUNT RATE AT PURCHASE.
EQUITY GROWTH FUND
- --------------------------------------------------------------------------------
COMMON STOCKS--96.5%
BANKS--2.4%
Northern Trust 62,000 4,727
--------
BEAUTY PRODUCTS--2.2%
Colgate-Palmolive 32,000 2,816
Procter & Gamble 16,000 1,457
--------
4,273
--------
COMMUNICATIONS EQUIPMENT--6.3%
Ciena* 2,000 139
Ericsson LM (ADR) 164,750 4,716
Nokia, Series A (ADR) 80,000 5,805
Qualcomm* 28,500 1,601
--------
12,261
--------
COMPUTERS & SERVICES--21.7%
America Online* 78,200 8,289
Ceridian 48,100 2,826
Cisco Systems* 65,500 6,030
Computer Associates International 65,000 3,612
Dell Computer* 61,200 5,680
EMC* 105,000 4,705
Hewlett Packard 5,000 299
Intuit 20,000 1,225
Microsoft* 57,900 6,275
Sungard Data Systems* 84,300 3,235
--------
42,176
--------
DRUGS--9.5%
Bristol-Myers Squibb 35,300 4,057
Merck 18,100 2,421
25
<PAGE>
Statement of Net Assets
EQUITY GROWTH FUND (CONTINUED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Pfizer 45,000 $ 4,891
Schering Plough 47,400 4,343
Warner-Lambert 40,000 2,775
--------
18,487
--------
ENTERTAINMENT--1.3%
Walt Disney 24,300 2,553
--------
FINANCIAL SERVICES--9.0%
Franklin Resources 72,300 3,904
Freddie Mac 62,300 2,932
Green Tree Financial 49,300 2,111
MBNA 28,000 924
Merrill Lynch 20,000 1,845
Morgan Stanley, Dean Witter,
Discover 25,700 2,348
Washington Mutual 78,000 3,388
--------
17,452
--------
FOOD, BEVERAGE & TOBACCO--2.2%
Coca-Cola 51,000 4,360
--------
GAS/NATURAL GAS--1.5%
Enron 53,000 2,865
--------
HOUSEHOLD PRODUCTS--2.5%
Illinois Tool Works 72,800 4,855
--------
INSURANCE--6.1%
American International Group 31,000 4,526
Travelers 63,999 3,880
UNUM 64,000 3,552
--------
11,958
--------
MACHINERY--3.6%
General Electric 78,000 7,098
--------
MARINE TRANSPORTATION--2.5%
Carnival, Class A 124,200 4,921
--------
MEDICAL PRODUCTS & SERVICES--1.1%
Healthsouth Rehabilitation* 83,700 2,234
--------
MISCELLANEOUS BUSINESS SERVICES--2.3%
Cambridge Technology Partners* 81,600 4,457
--------
MISCELLANEOUS CONSUMER SERVICES--1.3%
Service International 58,000 2,487
--------
PETROLEUM & FUEL PRODUCTS--0.9%
Diamond Offshore Drilling 17,450 698
Global Marine* 61,300 1,146
--------
1,844
--------
PROFESSIONAL SERVICES--4.4%
Apollo Group, Class A* 90,000 2,976
Halliburton 36,850 1,642
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Paychex 96,900 $ 3,943
--------
8,561
--------
RETAIL--9.4%
Dollar General 90,000 3,561
Gap 63,650 3,922
Home Depot 55,400 4,602
Restoration Hardware 100 3
Stage Stores 25,700 1,163
Starbucks* 93,400 4,991
--------
18,242
--------
SEMI-CONDUCTORS/INSTRUMENTS--2.2%
American Power Conversion* 95,000 2,850
Intel 18,800 1,394
--------
4,244
--------
TELEPHONES & TELECOMMUNICATION--2.1%
Worldcom* 85,530 4,143
--------
WHOLESALE--2.0%
Gillette 44,800 2,540
Johnson & Johnson 17,800 1,313
--------
3,853
--------
Total Common Stocks
(Cost $138,982) 188,051
--------
PREFERRED STOCK--1.1%
Conseco Financial Trust 40,000 2,120
--------
Total Preferred Stock
(Cost $1,982) 2,120
--------
OPTIONS--0.2%
Bank of Boston Call Option* 400 400
First Tennessee Call Option* 700 245
Fleet Financial Call Option* 200 312
LSI Call Option* 500 269
MCI Call Option* 285 1,090
Morgan Stanley High Tech
Put Option* 350 403
Morgan Stanley High Tech
Written Call* (350) (621)
Morgan Stanley High Tech
Written Call* (400) (1,955)
Morgan Stanley High Tech
Written Put* (350) (18)
Wachovia Call Option* 300 323
--------
Total Options
(Cost $1,878) 448
--------
26
<PAGE>
[LOGO OMITTED]
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
REGULATED INVESTMENT & COMPANY--1.0%
Vontobel Europacific Fund 90,224 $ 1,909
--------
Total Regulated Investment Company
(Cost $1,649) 1,909
--------
CASH EQUIVALENTS--1.0%
Aim Short-Term Prime Obligation 1,894 1,894
--------
Total Cash Equivalents
(Cost $1,894) 1,894
--------
Total Investments--99.8%
(Cost $146,386) 194,422
--------
OTHER ASSETS AND LIABILITIES, NET--0.2% 317
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 16,804,462 outstanding shares
of beneficial interest 128,383
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 248,776 outstanding shares
of beneficial interest 2,581
Portfolio Shares of Class B (unlimited
authorization -- no par value) based
on 185,649 outstanding shares
of beneficial interest 1,950
Overdistribution of net investment
income (108)
Accumulated net realized gain on investments 13,897
Net unrealized appreciation on investments 48,036
--------
Total Net Assets--100.0% $194,739
========
Net Asset Value, Offering and Redemption
Price Per Share-- Class I $11.30
========
Net Asset Value and Redemption Price
Per Share -- Class A $11.30
========
Maximum Offering Price Per Share --
Class A ($11.30 / 94.5%) $11.96
========
Net Asset Value and Redemption Price
Per Share-- Class B (1) $11.18
========
(1) CLASS B HAS A CONTINGENT DEFERRED SALES CHARGE.
* NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
EQUITY VALUE FUND
- --------------------------------------------------------------------------------
COMMON STOCKS--96.2%
AIRCRAFT--1.6%
United Technologies 45,000 4,162
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
BANKS--7.4%
Bank of New York 75,000 $ 4,552
Chase Manhattan 34,000 2,567
Citicorp 30,000 4,477
First Union 60,000 3,495
J.P. Morgan 25,000 2,928
Norwest 26,600 994
--------
19,013
--------
CHEMICALS--3.1%
E.I. DuPont de Nemours 65,000 4,851
Praxair 67,000 3,136
--------
7,987
--------
COMMUNICATIONS EQUIPMENT--2.0%
Nokia, Series A (ADR) 70,000 5,079
--------
COMPUTERS & SERVICES--6.0%
Compaq Computer* 140,000 3,972
Hewlett Packard 70,000 4,191
Microsoft* 66,000 7,153
--------
15,316
--------
DRUGS--11.5%
Bristol-Myers Squibb 50,000 5,747
Glaxo Wellcome PLC (ADR) 95,000 5,682
Merck 45,000 6,019
Pfizer 60,000 6,521
SmithKline Beecham 90,000 5,445
--------
29,414
--------
ELECTRICAL & ELECTRONIC PRODUCTS--3.8%
Emerson Electric 65,000 3,920
General Electric 65,000 5,915
--------
9,835
--------
ELECTRICAL UTILITIES--1.3%
FPL Group 55,000 3,465
--------
FINANCIAL SERVICES--5.6%
American Express 50,000 5,700
Federal National Mortgage
Association 85,000 5,164
Textron 50,000 3,584
--------
14,448
--------
FOOD, BEVERAGE & TOBACCO--6.8%
Bestfoods 90,000 5,226
Campbell Soup 65,000 3,453
PepsiCo 95,000 3,913
Sara Lee 85,000 4,755
--------
17,347
--------
27
<PAGE>
Statement of Net Assets
EQUITY VALUE FUND (CONTINUED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
GAS/NATURAL GAS--2.6%
Consolidated Natural Gas 55,000 $ 3,238
Enron 65,000 3,514
--------
6,752
--------
GLASS PRODUCTS--1.1%
Corning 80,000 2,780
--------
HOUSEHOLD PRODUCTS--5.4%
Colgate-Palmolive 60,000 5,280
Procter & Gamble 50,000 4,553
Whirlpool 60,000 4,125
--------
13,958
--------
INSURANCE--2.3%
American International Group 40,000 5,840
--------
LEISURE PRODUCTS--2.1%
Mattel 125,000 5,289
--------
MACHINERY--1.4%
Deere 70,000 3,701
--------
MANUFACTURING--1.0%
Minnesota Mining &
Manufacturing 30,000 2,466
--------
MISCELLANEOUS BUSINESS SERVICES--0.8%
Electronic Data Systems 50,000 2,000
--------
PAPER & PAPER PRODUCTS--1.2%
Kimberly Clark 65,000 2,982
--------
PETROLEUM & FUEL PRODUCTS--1.5%
Schlumberger 55,000 3,757
--------
PETROLEUM REFINING--6.6%
Amoco 70,000 2,914
Exxon 65,000 4,635
Mobil 60,000 4,598
Royal Dutch Petroleum (ADR) 85,000 4,659
--------
16,806
--------
PRINTING & PUBLISHING--5.0%
Gannett 85,000 6,040
Time Warner 80,000 6,835
--------
12,875
--------
RAILROADS--2.3%
Burlington Northern Santa Fe 35,000 3,437
Union Pacific 55,000 2,427
--------
5,864
--------
RETAIL--2.8%
Limited 75,000 2,484
Sears Roebuck 65,000 3,969
Wal-Mart Stores 10,000 608
--------
7,061
--------
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
SEMI-CONDUCTORS/INSTRUMENTS--1.7%
Intel 60,000 $ 4,448
--------
TELEPHONES & TELECOMMUNICATION--9.3%
Ameritech 100,000 4,488
BellSouth 70,000 4,699
Lucent Technologies 90,000 7,487
SBC Communications 120,000 4,800
Worldcom* 50,000 2,422
--------
23,896
--------
Total Common Stocks
(Cost $186,578) 246,541
--------
CASH EQUIVALENTS--1.8%
SEI Liquid Asset Trust--
Government Portfolio 4,594 4,594
SEI Liquid Asset Trust--
Treasury Portfolio 176 176
--------
Total Cash Equivalents
(Cost $4,770) 4,770
--------
U.S. TREASURY OBLIGATION--1.0%
U.S. Treasury STRIPS
5.350%, 02/15/01 $3,000 2,606
--------
Total U.S. Treasury Obligation
(Cost $2,612) 2,606
--------
COMMERCIAL PAPER--1.4%
Ford Motor Credit
5.850%, 07/03/98 2,000 2,000
General Electric Capital
5.570%, 07/14/98 1,500 1,500
--------
Total Commercial Paper
(Cost $3,500) 3,500
--------
Total Investments--100.4%
(Cost $197,460) 257,417
--------
OTHER ASSETS AND LIABILITIES, NET--(0.4%) (1,102)
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 15,047,229 outstanding shares
of beneficial interest 156,818
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 1,192,813 outstanding shares
of beneficial interest 14,928
28
<PAGE>
[LOGO OMITTED]
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Portfolio Shares of Class B (unlimited
authorization -- no par value) based
on 963,894 outstanding shares
of beneficial interest $ 14,002
Overdistribution of net investment income (375)
Accumulated net realized gain on investments 10,985
Net unrealized appreciation on investments 59,957
--------
Total Net Assets--100.0% $256,315
========
Net Asset Value, Offering and Redemption
Price Per Share -- Class I $14.90
========
Net Asset Value and Redemption Price
Per Share -- Class A $14.91
========
Maximum Offering Price Per Share --
Class A ($14.91 / 94.5%) $15.78
========
Net Asset Value, Offering and Redemption
Price Per Share -- Class B (1) $14.86
========
(1) CLASS B HAS A CONTINGENT DEFERRED SALES CHARGE.
* NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
PLC -- PUBLIC LIMITED COMPANY
STRIPS -- SEPARATE TRADING OF REGISTERED INTEREST AND PRINCIPAL OF SECURITIES.
THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS REPRESENTS THE
SECURITY'S EFFECTIVE YIELD AT PURCHASE.
EQUITY INCOME FUND
- --------------------------------------------------------------------------------
COMMON STOCKS--85.1%
AIRCRAFT--1.0%
United Technologies 15,000 1,387
--------
AUTOMOTIVE--1.7%
Echlin 30,000 1,472
General Motors 13,000 869
--------
2,341
--------
BANKS--9.8%
Bank of New York 44,500 2,701
BankBoston 10,000 556
Banker's Trust New York 15,000 1,741
Chase Manhattan Bank 35,000 2,642
First Union 35,000 2,039
J.P. Morgan 15,400 1,804
Norwest 50,000 1,869
--------
13,352
--------
CHEMICALS--3.1%
E.I. DuPont de Nemours 31,000 2,313
Imperial Chemical Industries PLC 30,000 1,935
--------
4,248
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
DRUGS--10.9%
American Home Products 20,000 $ 1,035
Bristol-Myers Squibb 26,300 3,023
Glaxo Wellcome PLC (ADR) 36,500 2,183
Merck 14,600 1,953
Pfizer 21,000 2,282
Pharmacia & Upjohn 40,000 1,845
SmithKline Beecham 43,000 2,601
--------
14,922
--------
ELECTRICAL & ELECTRONIC PRODUCTS--5.6%
Emerson Electric 29,000 1,749
General Electric 40,000 3,640
Thomas & Betts 45,000 2,216
--------
7,605
--------
ELECTRICAL UTILITIES--0.6%
Southern 30,000 831
--------
ENVIRONMENTAL SERVICES--1.1%
Browning-Ferris Industries 45,000 1,564
--------
FINANCIAL SERVICES--3.5%
Beneficial 17,000 2,604
Textron 30,000 2,151
--------
4,755
--------
FOOD, BEVERAGE & TOBACCO--4.6%
Bestfoods 34,000 1,974
Groupe Danone 30,000 1,650
Kellogg 25,000 939
Sara Lee 30,000 1,678
--------
6,241
--------
GAS/NATURAL GAS--5.1%
Consolidated Natural Gas 39,000 2,296
Enron 33,000 1,784
Trans Canada Pipeline 41,500 923
Williams 60,000 2,025
--------
7,028
--------
GLASS PRODUCTS--2.2%
Corning 40,000 1,390
PPG Industries 24,000 1,670
--------
3,060
--------
HOUSEHOLD PRODUCTS--3.0%
Colgate-Palmolive 25,600 2,253
Hubbell, Class B 44,000 1,832
--------
4,085
--------
INSURANCE--6.8%
American General 20,000 1,424
29
<PAGE>
Statement of Net Assets
EQUITY INCOME FUND (CONTINUED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Lincoln National 20,000 $ 1,828
Marsh & McLennan 40,500 2,448
Mid Ocean 20,000 1,570
St. Paul 50,000 2,103
--------
9,373
--------
MACHINERY--0.4%
Tenneco 16,000 609
--------
MARINE TRANSPORTATION--0.5%
Knightsbridge Tankers Limited 25,500 682
--------
MEDICAL PRODUCTS & SERVICES--1.2%
Baxter International 31,000 1,668
--------
PAPER & PAPER PRODUCTS--1.2%
Kimberly Clark 35,000 1,606
--------
PETROLEUM REFINING--8.8%
Atlantic Richfield 24,000 1,875
British Petroleum (ADR) 26,000 2,295
Mobil 29,200 2,237
Royal Dutch Petroleum (ADR) 34,000 1,864
Sun 18,999 737
Texaco 35,000 2,089
Ultramar Diamond Shamrock 30,000 947
--------
12,044
--------
PRINTING & PUBLISHING--3.5%
Hollinger International 60,000 1,020
McGraw-Hill 32,000 2,610
Readers Digest 46,000 1,185
--------
4,815
--------
RAILROADS--0.8%
Burlington Northern Santa Fe 11,000 1,080
--------
REAL ESTATE INVESTMENT TRUSTS--1.8%
First Real Estate Investment Trust
of New Jersey 5,000 140
Healthcare Realty Trust 21,900 597
Hospitality Properties Trust 20,000 643
Kilroy Realty 16,000 400
Liberty Property Trust 26,300 672
--------
2,452
--------
RETAIL--3.4%
J.C. Penney 27,000 1,952
Limited 75,000 2,484
Russ Berrie 10,000 250
--------
4,686
--------
TELEPHONES & TELECOMMUNICATION--4.5%
AT&T 15,000 857
Bell Atlantic 26,000 1,186
BellSouth 36,500 2,450
GTE 30,000 1,669
--------
6,162
--------
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Total Common Stocks
(Cost $92,166) $116,596
--------
PREFERRED STOCKS--7.8%
Aetna 18,000 1,352
Airtouch Communications 17,500 1,444
Cendant 25,000 936
Conseco Financial Trust 22,000 573
El Paso Energy Capital Trust 29,000 1,537
Mattel 36,500 636
Newell Financial 35,000 2,017
SunAmerica 18,200 874
Union Pacific Captial Trust 30,000 1,391
--------
Total Preferred Stocks
(Cost $9,672) 10,760
--------
CASH EQUIVALENTS--4.1%
SEI Liquid Asset Trust--
Prime Obligation 5,003 5,003
SEI Liquid Asset Trust--
Treasury Portfolio 474 474
--------
Total Cash Equivalents
(Cost $5,477) 5,477
--------
U.S. GOVERNMENT AGENCY OBLIGATION--1.1%
Federal National Mortgage Association
5.590%, 11/18/98 $1,460 1,460
--------
Total U.S. Government Agency Obligation
(Cost $1,459) 1,460
--------
CONVERTIBLE BONDS--1.5%
Parker Drilling Shares
5.500%, 08/01/04 300 257
PetSmart
6.750%, 11/01/04 500 651
U.S. Filter
4.500%, 12/15/01 800 815
USA Waste Services
4.000%, 02/01/02 300 374
--------
Total Convertible Bonds
(Cost $1,959) 2,097
--------
U.S. TREASURY OBLIGATION--0.3%
U.S. Treasury Note
5.625%, 10/31/99 365 365
--------
Total U.S. Treasury Obligation
(Cost $365) 365
--------
30
<PAGE>
[LOGO OMITTED]
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
DESCRIPTION (000)/SHARES VALUE (000)
- --------------------------------------------------------------------------------
CORPORATE BOND--0.4%
Adaptec
4.750%, 02/01/04 $800 $ 621
--------
Total Corporate Bond
(Cost $703) 621
--------
Total Investments--100.3%
(Cost $111,801) 137,376
--------
OTHER ASSETS AND LIABILITIES, NET--(0.3%) (445)
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 6,917,179 outstanding shares
of beneficial interest 70,305
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 1,343,162 outstanding shares
of beneficial interest 16,724
Portfolio Shares of Class B (unlimited
authorization -- no par value) based
on 1,210,239 outstanding shares
of beneficial interest 17,457
Overdistribution of net investment income (364)
Accumulated net realized gain on investments 7,234
Net unrealized appreciation on investments 25,575
--------
Total Net Assets--100.0% $136,931
========
Net Asset Value, Offering and Redemption
Price Per Share-- Class I $14.46
========
Net Asset Value and Redemption
Price Per Share-- Class A $14.49
========
Maximum Offering Price Per Share --
Class A ($14.49 / 94.5%) $15.33
========
Net Asset Value and Redemption Price
Per Share-- Class B (1) $14.42
========
(1) CLASS B HAS A CONTINGENT DEFERRED SALES CHARGE.
ADR -- AMERICAN DEPOSITORY RECEIPT
PLC -- PUBLIC LIMITED COMPANY
MID CAP FUND
- --------------------------------------------------------------------------------
COMMON STOCKS--100.9%
AUTOMOTIVE--2.0%
Cooper* 10,000 364
--------
BANKS--6.5%
First Tennessee National 11,500 363
Sovereign Bancorp 20,000 327
Zions Bancorp 9,000 478
--------
1,168
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
CHEMICALS--2.3%
Cytec Industries* 9,500 $ 420
--------
COMMUNICATIONS EQUIPMENT--6.7%
ADC Telecommunications* 12,500 457
Ascend Communications* 5,000 248
Qualcomm* 9,000 506
--------
1,211
--------
COMPUTERS & SERVICES--5.8%
Gateway 2000* 10,000 506
Sungard Data Systems* 14,000 537
--------
1,043
--------
DRUGS--7.7%
Biogen* 10,500 514
Centocor* 10,000 362
Watson Pharmaceuticals* 11,000 514
--------
1,390
--------
FINANCIAL SERVICES--4.1%
Firstplus Financial Group* 10,000 360
Franklin Resources 7,000 378
--------
738
--------
HOUSEHOLD PRODUCTS--2.2%
Danaher 11,000 404
--------
INSURANCE--4.4%
Amerin* 10,000 292
Delphi Financial Group* 9,000 507
--------
799
--------
MEDICAL PRODUCTS & SERVICES--5.1%
Arterial Vascular* 5,000 179
Biomet* 7,500 248
Novacare* 12,500 147
PSS World Medical* 11,500 168
Theragenics* 6,500 169
--------
911
--------
MISCELLANEOUS BUSINESS SERVICES--13.8%
Cendant* 14,000 292
Corrections Corporation of America* 8,000 188
Electronic Arts* 10,500 567
Networks Associates* 9,000 431
Parametric Technology* 14,500 393
Premiere Technologies* 20,000 166
U.S. Filter* 8,000 224
Whitman 10,000 229
--------
2,490
--------
MISCELLANEOUS CONSUMER SERVICES--2.9%
Stewart Enterprises, Class A 19,500 519
--------
31
<PAGE>
Statement of Net Assets
MID CAP FUND (CONTINUED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
PETROLEUM & FUEL PRODUCTS--4.4%
Ensco International 10,000 $ 174
Global Marine* 15,000 280
Noble Drilling* 7,500 180
Parker Drilling* 24,000 170
--------
804
--------
PROFESSIONAL SERVICES--5.5%
Devry* 25,000 548
Paychex 11,000 448
--------
996
--------
RETAIL--11.4%
Bed Bath and Beyond* 9,500 492
CompUSA* 8,500 154
Piercing Pagoda * 15,000 544
Rainforest Cafe* 27,500 382
Tech Data* 11,250 482
--------
2,054
--------
SEMI-CONDUCTORS/INSTRUMENTS--6.6%
American Power Conversion* 16,500 495
Analog Devices* 14,500 356
Xilinx* 10,000 340
--------
1,191
--------
SPECIALTY MACHINERY--2.0%
American Standard Companies* 5,000 223
Sli* 5,000 131
--------
354
--------
TESTING LABORATORIES--2.0%
Chiron* 23,500 369
--------
TRUCKING--2.6%
Suiza Foods* 8,000 478
--------
WHOLESALE--2.9%
Cardinal Health 5,500 516
--------
Total Common Stocks
(Cost $13,687) 18,219
--------
Total Investments--100.9%
(Cost $13,687) 18,219
--------
OTHER ASSETS AND LIABILITIES, NET--(0.9%) (166)
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 907,530 outstanding shares
of beneficial interest (3,297)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 228,387 outstanding shares
of beneficial interest $ 1,843
Distribution in excess of net investment income (77)
Accumulated net realized gain on investments 15,052
Net unrealized appreciation on investments 4,532
--------
Total Net Assets--100.0% $ 18,053
========
Net Asset Value, Offering and Redemption
Price Per Share-- Class I $15.91
========
Net Asset Value and Redemption
Price Per Share-- Class A $15.83
========
Maximum Offering Price Per Share --
Class A ($15.83 / 96%) $16.49
========
* NON-INCOME PRODUCING SECURITY
BALANCED FUND
- --------------------------------------------------------------------------------
COMMON STOCKS--69.6%
AIRCRAFT--2.0%
Allied Signal 24,000 1,065
--------
BANKS--9.3%
Bank of New York 8,000 485
Chase Manhattan Bank 14,000 1,057
Citicorp 6,000 895
First Union 18,000 1,048
Nationsbank 11,000 841
Norwest 16,000 598
--------
4,924
--------
CHEMICALS--3.5%
E.I. DuPont de Nemours 13,000 970
Praxair 19,000 889
--------
1,859
--------
COMPUTERS & SERVICES--6.2%
3Com* 10,000 307
Cisco Systems* 10,000 921
Compaq Computer 31,000 880
Dell Computer* 6,000 557
Microsoft* 6,000 650
--------
3,315
--------
32
<PAGE>
[LOGO OMITTED]
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING OPERATIONS--1.6%
U.S. Industries 34,000 $ 841
--------
DRUGS--6.4%
Bristol-Myers Squibb 6,000 690
Glaxo Wellcome PLC (ADR) 10,000 598
Merck 5,500 736
Pfizer 8,000 869
SmithKline Beecham (ADR) 8,000 484
--------
3,377
--------
FINANCIAL SERVICES--6.3%
American Express 5,000 570
Federal National Mortgage
Association 14,000 851
Morgan Stanley, Dean Witter,
Discover 11,000 1,005
Textron 13,000 932
--------
3,358
--------
FOOD, BEVERAGE & TOBACCO--1.1%
PepsiCo 14,000 577
--------
GAS/NATURAL GAS--1.5%
Williams 24,000 810
--------
GLASS PRODUCTS--1.3%
Corning 20,000 695
--------
HOUSEHOLD PRODUCTS--1.6%
Whirlpool 12,000 825
--------
INSURANCE--2.3%
American International Group 4,000 584
Oxford Health Plans 40,000 613
--------
1,197
--------
LEISURE PRODUCTS--1.8%
Mattel 22,000 931
--------
MACHINERY--4.0%
General Electric 12,000 1,092
Ingersoll-Rand 23,000 1,013
--------
2,105
--------
MISCELLANEOUS CONSUMER SERVICES--3.6%
Loewen Group 32,000 864
Service International 24,000 1,029
--------
1,893
--------
PAPER & PAPER PRODUCTS--1.2%
Kimberly Clark 14,000 642
--------
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
PETROLEUM & FUEL PRODUCTS--1.7%
Global Marine* 30,000 $ 561
Schlumberger 5,000 342
--------
903
--------
PETROLEUM REFINING--3.0%
Amoco 8,000 333
Exxon 6,000 428
Mobil 6,000 460
Royal Dutch Petroleum (ADR) 7,000 384
--------
1,605
--------
RAILROADS--1.0%
Burlington Northern Santa Fe 5,500 540
--------
RETAIL--1.6%
Limited 25,000 828
--------
SEMI-CONDUCTORS/INSTRUMENTS--1.7%
Intel 12,000 890
--------
TELEPHONES & TELECOMMUNICATION--3.7%
Lucent Technologies 12,000 998
Worldcom* 20,000 969
--------
1,967
--------
TRUCKING--1.8%
CNF Transportation 23,000 978
--------
WHOLESALE--1.5%
--------
Total Common Stocks
(Cost $28,743) 36,936
--------
U.S. TREASURY OBLIGATIONS--7.8%
U.S. Treasury Notes
5.750%, 11/15/00 $ 800 804
5.500%, 03/31/03 500 499
5.625%, 02/15/06 200 201
6.625%, 05/15/07 1,000 1,073
6.125%, 08/15/07 1,500 1,560
--------
Total U.S. Treasury Obligations
(Cost $4,009) 4,137
--------
CORPORATE BONDS--13.1%
BANKS--2.9%
Bank One Texas
6.250%, 02/15/08 1,000 995
First Chicago NBD Bancorp
7.125%, 05/15/07 500 531
--------
1,526
--------
33
<PAGE>
Statement of Net Assets
BALANCED FUND (CONTINUED)
- --------------------------------------------------------------------------------
FACE AMOUNT/ MARKET
DESCRIPTION SHARES (000) VALUE (000)
- --------------------------------------------------------------------------------
FINANCIAL SERVICES--1.5%
Bear Stearns
6.625%, 10/01/04 $ 800 $ 810
--------
INDUSTRIAL--6.8%
Amoco
6.250%, 10/15/04 1,000 1,019
Browning-Ferris
6.375%, 01/15/08 500 505
McDonald's
6.500%, 08/01/07 1,000 1,032
Philip Morris
9.250%, 02/15/00 100 105
Sara Lee (MTN)
6.000%, 01/15/08 950 939
--------
3,600
--------
UTILITIES--1.9%
GTE
6.460%, 04/15/08 1,000 1,005
--------
Total Corporate Bonds
(Cost $6,847) 6,941
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS--7.6%
Federal Farm Credit Bank
6.000%, 01/07/08 1,000 1,015
Federal Home Loan
Mortgage Corporation
6.704%, 01/09/07 500 529
Federal National Mortgage
Association
5.750%, 04/15/03 2,000 2,003
7.760%, 08/02/06 500 511
--------
Total U.S. Government Agency Obligations
(Cost $3,998) 4,058
--------
CERTIFICATE OF DEPOSIT--0.8%
National City Bank Cleveland
7.100%, 09/25/12 400 420
--------
Total Certificate of Deposit
(Cost $400) 420
--------
CASH EQUIVALENTS--1.0%
SEI Liquid Asset Trust--
Government Portfolio 534 534
SEI Liquid Asset Trust--
Treasury Portfolio 29 29
--------
Total Cash Equivalents
(Cost $563) 563
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Total Investments--99.9%
(Cost $44,560) $ 53,055
--------
OTHER ASSETS AND LIABILITIES, NET--0.1% 36
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 2,312,826 outstanding shares
of beneficial interest 22,940
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 808,493 outstanding shares of
beneficial interest 8,655
Portfolio Shares of Class B (unlimited
authorization -- no par value) based
on 869,047 outstanding shares
of beneficial interest 11,095
Undistributed net investment income 9
Accumulated net realized gain on investments 1,897
Net unrealized appreciation on investments 8,495
--------
Total Net Assets--100.0% $ 53,091
========
Net Asset Value, Offering and Redemption
Price Per Share-- Class I $13.31
========
Net Asset Value and Redemption
Price Per Share-- Class A $13.33
========
Maximum Offering Price Per Share --
Class A ($13.33 / 94.5%) $14.11
========
Net Asset Value and Redemption
Price Per Share-- Class B (1) $13.26
========
(1) CLASS B HAS A CONTINGENT DEFERRED SALES CHARGE.
* NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
MTN -- MEDIUM TERM NOTE
PLC -- PUBLIC LIMITED COMPANY
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
FOREIGN COMMON STOCKS--81.4%
ARGENTINA--0.5%
Telefonica de Argentina (ADR) 2,300 75
--------
AUSTRALIA--2.3%
Australian & New Zealand Bank 11,000 76
CSR 17,000 49
Goodman Fielder 121 --
Newscorp Finance 16,026 131
Rio Tinto 5,500 66
WMC 11,112 34
--------
356
--------
34
<PAGE>
[LOGO OMITTED]
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
BRAZIL--0.1%
Telebras (ADR)* 140 $ 15
--------
CANADA--2.1%
Canada Pacific (ADR) 7,500 213
Canadian Imperial Bank 3,600 116
--------
329
--------
DENMARK--1.8%
Unidanmark, Series A 3,050 275
--------
FINLAND--1.9%
Kesko Oy Akt 6,400 101
Metsa Serla, Series B 10,500 102
Nokia, Series A (ADR) 1,200 87
--------
290
--------
FRANCE--8.6%
Allianz-BCVG Warrants* 64 2
Assurances Generales de France 1,054 60
AXA - UAP 400 45
Banque National Paris, Series A 2,845 232
Cie de Saint Gobain 711 132
Michelin, Cl B* 800 46
Rhone Poulenc 2,221 125
Societe Generale 910 189
Societe Nationale Elf Aquitaine 1,880 264
Total 1,449 188
Vivendi 200 43
--------
1,326
--------
GERMANY--9.2%
Adidas-Salomon 510 89
Bayer 6,560 340
Degussa 1,450 93
Karstadt 380 185
Man 560 219
Mannesmann 3,700 381
Metallgesellschaft* 3,050 63
Veba 700 46
--------
1,416
--------
HONG KONG--0.1%
Sung Hung Kai Properties 5,161 22
--------
INDIA--0.1%
State Bank of India (GDR) 1,300 15
--------
IRELAND--0.6%
Allied Irish Bank 5,972 86
--------
ITALY--1.6%
Telecom Italia 33,788 249
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
JAPAN--12.1%
Advantest 300 $ 16
Bank of Tokyo-Mitsubishi 5,000 53
Daiwa Securities 15,000 64
Eisai 7,000 95
Fuji Machine Manufacturing 5,000 132
Fuji Photo Film 2,000 70
Fujisawa Pharmaceutical 5,000 47
Hitachi 8,000 52
Jusco 6,000 110
Mabuchi Motor 1,000 63
Maruichi Steel Tube 4,000 55
Matsumotokiyoshi 2,400 84
Matsushita Electric 7,000 112
Nippon Telegraph & Telephone 16 132
Nomura Securities 3,000 35
Okumura 8,000 28
Otsuka Kagu Ltd 500 23
Rohm Company 1,000 103
Sanwa Bank 6,000 54
Sony 2,100 181
Sony Music Entertainment 3,200 136
Square Co Ltd 1,300 35
Takashimaya 8,000 60
Toshiba 15,000 61
Uni-Charm 1,000 37
Yamato Kogyo 4,000 29
--------
1,867
--------
MALAYSIA--0.1%
Genting 2,000 4
Telekom Malaysia 3,000 5
YTL 5,000 4
--------
13
--------
MEXICO--1.1%
Grupo Televisa* 3,800 72
Kimberly Clark, Series A 26,000 92
--------
164
--------
NETHERLANDS--5.0%
ING Groep 5,421 355
Philips Electronics 800 67
Polygram 1,500 77
Royal Dutch Petro-Ny Shrs 3,000 164
Unilever 1,400 111
--------
774
--------
NEW ZEALAND--0.3%
Telecom of New Zealand (ADR) 1,600 52
--------
NORWAY--0.5%
Saga Petroleum, Series A 4,800 74
--------
35
<PAGE>
Statement of Net Assets
INTERNATIONAL EQUITY FUND (CONTINUED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
PHILIPPINES--0.3%
Ayala Land 50,400 $ 15
Manila Electric, Series B 10,000 27
--------
42
--------
SINGAPORE--0.4%
Overseas Union Bank 28,000 62
--------
SOUTH AFRICA--0.4%
Billiton 27,600 54
--------
SPAIN--3.9%
Banco Santander 7,000 179
Banco Popular Espana 1,560 133
Empresa Nacional
de Electricidad 7,700 169
Telefonica de Espana (ADR) 872 121
Telefonica de Espana Rights* 8 --
--------
602
--------
SWEDEN--4.1%
Mandamus* 69
Nordbanken Holding AB 40,900 300
Pharmacia & Upjohn 6,400 295
Sparbanken Sverige AB, Series A 1,420 43
--------
638
--------
SWITZERLAND--4.9%
Holderbank Finan Glarus, Series B 250 319
Nestle 156 334
Novartis AG Bearer 58 97
--------
750
--------
THAILAND--0.0%
Bec World, Foreign 2,000 8
Siam Commercial Warrants* 300 --
--------
8
--------
UNITED KINGDOM--19.4%
Associated British Foods 10,300 97
Bank of Scotland 12,400 139
Bass 10,267 193
Billiton 7,400 15
BOC Group 7,913 108
British Petroleum 18,257 266
BTR 19,662 56
Carlton Communications 13,000 116
Cookson Group 39,869 137
Diageo 19,008 225
HSBC Holdings 6,900 167
Jefferson Smurf 46,770 141
Johnson Matthey 6,100 55
Powergen 9,805 136
Reckitt & Coleman 10,573 202
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Royal Bank of Scotland 11,000 $ 191
Smithkline Beecham 6,729 82
Sun Alliance Group 11,919 123
Wpp Group 17,000 112
Zeneca Group 10,000 429
--------
2,990
--------
Total Foreign Common Stocks
(Cost $9,832) 12,544
--------
FOREIGN PREFERRED STOCKS--2.9%
BRAZIL--1.1%
Cemig 758,737 24
Petroleo Brasileiro 292,000 54
CIA Vale do Rio Doce* 2,000 --
Telebras 788,000 87
--------
165
--------
GERMANY--1.9%
Hornbach 1,400 128
Prosieben Media* 3,100 161
--------
289
--------
Total Foreign Preferred Stocks
(Cost $427) 454
--------
REPURCHASE AGREEMENT--15.1%
Lehman Brothers
5.70%, dated 06/30/98, matures
07/01/98, repurchase price
$2,326,368 (collateralized by
U.S. Treasury Note, total
market value $2,979,373) $2,326 2,326
--------
Total Repurchase Agreement
(Cost $2,326) 2,326
--------
Total Investments--99.4%
(Cost $12,585) 15,324
--------
OTHER ASSETS AND LIABILITIES, NET--0.6% 96
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 1,228,257 outstanding shares
of beneficial interest 12,877
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 57,292 outstanding shares of
beneficial interest 567
Portfolio Shares of Class B (unlimited
authorization -- no par value) based
on 18,239 outstanding shares
of beneficial interest 213
36
<PAGE>
[LOGO OMITTED]
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
Undistributed net investment income $ 126
Accumulated net realized loss
on investments (1,100)
Net unrealized depreciation on foreign
currency and translation of other
assets and liabilities in foreign currency (2)
Net unrealized appreciation on investments 2,739
--------
Total Net Assets--100.0% $ 15,420
========
Net Asset Value, Offering and Redemption
Price Per Share-- Class I $11.83
========
Net Asset Value and Redemption Price
Per Share -- Class A $11.81
========
Maximum Public Offering Price Per
Shar e-- Class A ($11.81 / 94.5%) $12.50
========
Net Asset Value and Redemption Price
Per Share -- Class B (1) $11.73
========
(1) CLASS B HAS A CONTINGENT DEFERRED SALES CHARGE.
* NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPTS
CL -- CLASS
GDR -- GLOBAL DEPOSITORY RECEIPTS
The accompanying notes are an integral part of the financial statements.
37
<PAGE>
This page is intentionally left blank.
<PAGE>
<TABLE>
<CAPTION>
[LOGO OMITTED]
JUNE 30, 1998
Statement of Operations (000)
FOR THE PERIOD ENDED JUNE 30, 1998 (UNAUDITED)
--------------------------------------------------------------------------------------------
U.S. TREASURY PRIME U.S. TREASURY INSTITUTIONAL
SECURITIES OBLIGATION TAX-EXEMPT SECURITIES SELECT
MONEY MONEY MONEY PLUS MONEY MONEY
MARKET MARKET MARKET MARKET MARKET
FUND FUND FUND FUND FUND (2)
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INTEREST INCOME: $14,857 $13,255 $1,454 $1,798 $2,979
--------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fee 975 825 139 50 53
Less: Investment advisory fee waived -- -- (8) -- (16)
Administration fee 557 471 79 67 53
Custody fee 69 59 10 8 13
Transfer agency fee 22 40 21 31 13
Professional fees 19 27 9 11 10
Registration fees 68 41 -- 3 25
Distribution fees (1) 31 95 11 10 --
Printing expense 31 21 5 2 6
Amortization of deferred
organizational costs -- -- -- -- 1
Insurance and other expenses 28 14 1 3 1
--------------------------------------------------------------------------------------------
Total expenses, net of waivers 1,800 1,593 267 185 159
--------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 13,057 11,662 1,187 1,613 2,820
Net realized gain
on investments 16 -- -- 1 --
--------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $13,073 $11,662 $1,187 $1,614 $2,820
============================================================================================
<FN>
(1) DISTRIBUTION FEES ARE INCURRED AT THE CLASS A, CLASS B AND CLASS S LEVELS EXCEPT FOR THE U.S. TREASURY SECURITIES
PLUS MONEY MARKET FUND WHICH INCURS DISTRIBUTION FEES AT THE CLASS I LEVEL.
(2) THE INSTITUTIONAL SELECT MONEY MARKET FUND COMMENCED OPERATIONS ON JULY 1, 1997.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
39
<PAGE>
<TABLE>
<CAPTION>
Statement of Operations (000)
FOR THE PERIOD ENDED JUNE 30, 1998 (UNAUDITED)
--------------------------------------------------------------------------------------------
INTERMEDIATE-
NEW JERSEY TERM PENNSYLVANIA
SHORT-TERM FIXED MUNICIPAL GOVERNMENT MUNICIPAL
INVESTMENT INCOME SECURITIES SECURITIES SECURITIES
FUND FUND FUND FUND FUND
--------------------------------------------------------------------------------------------
INVESTMENT INCOME:
<S> <C> <C> <C> <C> <C>
Dividend income $ -- $ -- $ -- $ -- $ --
Interest income 87 6,918 3,869 1,097 1,053
Less: Foreign taxes withheld -- -- -- -- --
--------------------------------------------------------------------------------------------
Total income 87 6,918 3,869 1,097 1,053
--------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fee 10 634 441 103 123
Less: Investment advisory fee waived (9) (107) (95) (24) (34)
Administration fee 3 211 147 34 41
Custody fee -- 27 18 4 5
Transfer agency fee 9 42 35 15 16
Professional fees -- 17 12 3 5
Registration fees -- 5 8 -- 1
Distribution fees (1) 1 13 23 2 1
Printing expense -- 11 2 1 2
Amortization of deferred
organizational costs -- -- -- -- --
Insurance and other expenses -- 5 20 1 5
Total expenses, net of waivers 14 858 611 139 165
NET INVESTMENT INCOME (LOSS) 73 6,060 3,258 958 888
Net realized gain (loss)
on investments 2 431 393 18 511
Net change in unrealized depreciation
on foreign currency and translation
of other assets and liabilities
denominated in foreign currency -- -- -- -- --
Net change in unrealized appreciation
(deprecation) on investments (1) 312 (855) (34) (676)
--------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 74 $6,803 $2,796 $ 942 $ 723
============================================================================================
<FN>
(1) ALL DISTRIBUTION FEES ARE INCURRED AT THE CLASS A AND CLASS B LEVELS.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
The accompanying notes are an integral part of thefinancial statements.
</FN>
</TABLE>
40
<PAGE>
<TABLE>
<CAPTION>
[LOGO OMITTED]
JUNE 30, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY EQUITY EQUITY INTERNATIONAL
GNMA GROWTH VALUE INCOME MID CAP BALANCED EQUITY
FUND FUND FUND FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ -- $ 603 $ 1,857 $ 1,481 $ 39 $ 190 $ 186
215 35 197 392 10 487 39
-- -- -- -- -- -- (19)
- ------------------------------------------------------------------------------------------------------------------------------------
215 638 2,054 1,873 49 677 206
- ------------------------------------------------------------------------------------------------------------------------------------
19 695 907 493 113 171 75
(19) (233) (304) (195) (58) (85) (17)
6 185 242 132 31 45 15
1 23 29 16 4 6 13
17 28 56 55 26 37 19
-- 17 18 11 3 4 --
1 11 11 8 -- 1 --
1 7 67 88 6 50 2
-- 10 5 4 -- 2 --
-- 3 -- -- -- -- 1
1 -- 3 2 1 1 5
- ------------------------------------------------------------------------------------------------------------------------------------
27 746 1,034 614 126 232 113
- ------------------------------------------------------------------------------------------------------------------------------------
188 (108) 1,020 1,259 (77) 445 93
88 8,722 10,146 6,254 12,990 1,772 (592)
-- -- -- -- -- -- (2)
(94) 28,821 23,044 4,259 (9,564) 2,836 2,510
- ------------------------------------------------------------------------------------------------------------------------------------
$182 $37,435 $34,210 $11,772 $3,349 $5,053 $2,009
====================================================================================================================================
</TABLE>
41
<PAGE>
Statements of Changes in Net Assets (000)
<TABLE>
<CAPTION>
FOR THE PERIOD ENDED JUNE 30, 1998 (UNAUDITED) AND THE YEAR ENDED DECEMBER 31, 1997
MONEY MARKET FUNDS
------------------------------------------------------------------------
U.S. TREASURY PRIME OBLIGATION
SECURITIES MONEY MARKET
MONEY MARKET FUND FUND
------------------------------------------------------------------------
1998 1997 1998 1997
------------------------------------------------------------------------
INVESTMENT ACTIVITIES:
<S> <C> <C> <C> <C>
Net investment income $ 13,057 $ 21,893 $ 11,662 $ 21,711
Net realized gain (loss) on investments 16 114 -- --
------------------------------------------------------------------------
Net increase in net assets resulting
from operations 13,073 22,007 11,662 21,711
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class I(2) (12,501) (21,651) (10,278) (20,773)
Class A(2) (556) (242) (446) (693)
Class B -- -- -- --
Class S -- -- (938) (245)
Realized capital gains:
Class I(2) -- -- -- --
Class A(2) -- -- -- --
Class B -- -- -- --
Class S -- -- -- --
------------------------------------------------------------------------
Total distributions (13,057) (21,893) (11,662) (21,711)
------------------------------------------------------------------------
SHARE TRANSACTIONS (ALL AT $1.00 PER SHARE):
Class I: (2)
Shares issued 1,662,849 1,263,191 403,407 796,652
Shares issued in lieu of cash distributions 103 271 1,759 3,999
Shares redeemed (1,533,294) (1,281,107) (368,087) (801,385)
------------------------------------------------------------------------
Net Class I share transactions 129,658 (17,645) 37,079 (734)
------------------------------------------------------------------------
Class A: (2)
Shares issued 50,921 24,231 34,288 44,915
Shares issued in lieu of cash distributions 41 129 369 682
Shares redeemed (29,647) (15,373) (33,144) (39,430)
------------------------------------------------------------------------
Net Class A share transactions 21,315 8,987 1,513 6,167
------------------------------------------------------------------------
Class B:
Shares issued -- -- 64 10
Shares issued in lieu of cash distributions -- -- -- --
Shares redeemed -- -- (10) --
------------------------------------------------------------------------
Net Class B share transactions -- -- 54 10
------------------------------------------------------------------------
Class S:
Shares issued -- -- 67,099 39,261
Shares issued in lieu of cash distributions -- -- -- --
Shares redeemed -- -- (44,267) (8,741)
------------------------------------------------------------------------
Net Class S share transactions -- -- 22,832 30,520
------------------------------------------------------------------------
Increase/(decrease) in net assets from
share transactions 150,973 (8,658) 61,478 35,963
------------------------------------------------------------------------
Total increase/(decrease) in net assets 150,989 (8,544) 61,478 35,963
------------------------------------------------------------------------
NET ASSETS:
Beginning of period 499,688 508,232 448,733 412,770
------------------------------------------------------------------------
NET ASSETS:
End of period $ 650,677 $ 499,688 $ 510,211 $ 448,733
========================================================================
<FN>
(1) THE INSTITUTIONAL SELECT MONEY MARKET FUND COMMENCED OPERATIONS ON JULY 1, 1997.
(2) ON APRIL 30, 1997, CLASS A SHARES WERE REDESIGNATED CLASS I SHARES AND CLASS B SHARES WERE REDESIGNATED CLASS A SHARES.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
42
<PAGE>
<TABLE>
<CAPTION>
[LOGO OMITTED]
JUNE 30, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT U.S. TREASURY INSTITUTIONAL
MONEY MARKET SECURITIES PLUS SELECT MONEY
FUND MONEY MARKET FUND MARKET FUND (1)
- ------------------------------------------------------------------------------------------------------------------------------------
1998 1997 1998 1997 1998 1997
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 1,187 $ 2,280 $ 1,613 $ 3,642 $ 2,820 $ 1,010
-- (1) 1 1 -- 1
- ------------------------------------------------------------------------------------------------------------------------------------
1,187 2,279 1,614 3,643 2,820 1,011
- ------------------------------------------------------------------------------------------------------------------------------------
(1,065) (2,132) (1,613) (3,642) (2,820) (1,010)
(122) (148) -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
(1,187) (2,280) (1,613) (3,642) (2,820) (1,010)
- ------------------------------------------------------------------------------------------------------------------------------------
52,247 126,993 217,958 502,154 228,841 78,541
220 508 1,152 3,189 (75) 74
(52,947) (119,483) (226,978) (501,859) (194,992) (17,094)
- ------------------------------------------------------------------------------------------------------------------------------------
(480) 8,018 (7,868) 3,484 33,774 61,521
- ------------------------------------------------------------------------------------------------------------------------------------
13,323 12,367 -- -- -- --
40 110 -- -- -- --
(14,011) (7,822) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
(648) 4,655 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
(1,128) 12,673 (7,868) 3,484 33,774 61,521
- ------------------------------------------------------------------------------------------------------------------------------------
(1,128) 12,672 (7,867) 3,485 33,774 61,522
- ------------------------------------------------------------------------------------------------------------------------------------
83,606 70,934 68,658 65,173 61,522 --
- ------------------------------------------------------------------------------------------------------------------------------------
$ 82,478 $ 83,606 $ 60,791 $ 68,658 $ 95,296 $ 61,522
====================================================================================================================================
</TABLE>
43
<PAGE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets (000)
FOR THE PERIOD ENDED JUNE 30, 1998 (UNAUDITED) AND THE YEAR ENDED DECEMBER 31,
1997
FIXED INCOME FUNDS
--------------------------------------------------------------
SHORT-TERM FIXED
INVESTMENT INCOME
FUND FUND
--------------------------------------------------------------
1998 1997 1998 1997
--------------------------------------------------------------
INVESTMENT ACTIVITIES:
<S> <C> <C> <C> <C>
Net investment income $ 73 $ 869 $ 6,060 $ 14,044
Net realized gain (loss) on investments 2 19 431 (81)
Net change in unrealized appreciation (depreciation) on investments (1) (16) 312 3,905
--------------------------------------------------------------
Net increase in net assets resulting from operations 74 872 6,803 17,868
--------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class I(1) (65) (829) (5,893) (13,798)
Class A(1) (9) (40) (134) (241)
Class B -- -- (33) (6)
Realized capital gains:
Class I(1) -- -- -- --
Class A(1) -- -- -- --
Class B -- -- -- --
--------------------------------------------------------------
Total distributions (74) (869) (6,060) (14,045)
--------------------------------------------------------------
SHARE TRANSACTIONS:
Class I: (1)
Proceeds from shares issued 193 4,226 22,705 34,904
Shares issued in connection with acquisition of
common trust fund assets -- -- -- 173,842
Reinvestment of cash distributions 51 795 1,660 6,576
Cost of shares redeemed (1,854) (33,181) (22,649) (112,404)
--------------------------------------------------------------
Net Class I share transactions (1,610) (28,160) 1,716 102,918
--------------------------------------------------------------
Class A: (1)
Proceeds from shares issued -- 35 1,757 1,038
Reinvestment of cash distributions 7 38 93 197
Cost of shares redeemed (159) (671) (1,941) (1,594)
--------------------------------------------------------------
Net Class A share transactions (152) (598) (91) (359)
--------------------------------------------------------------
Class B:
Proceeds from shares issued -- -- 1,544 1,581
Reinvestment of cash distributions -- -- 21 4
Cost of shares redeemed -- -- (999) (322)
--------------------------------------------------------------
Net Class B share transactions -- -- 566 1,263
--------------------------------------------------------------
Increase (decrease) in net assets from share transactions (1,762) (28,758) 2,191 103,822
--------------------------------------------------------------
Total increase (decrease) in net assets (1,762) (28,755) 2,934 107,645
--------------------------------------------------------------
NET ASSETS:
Beginning of period 3,951 32,706 212,604 104,959
--------------------------------------------------------------
NET ASSETS:
End of period $ 2,189 $ 3,951 $215,538 $212,604
==============================================================
SHARES ISSUED AND REDEEMED:
Class I shares:
Issued 19 422 2,184 3,278
Shares issued in connection with acquisition of
common trust fund assets -- -- -- 17,057
Issued in lieu of cash distributions 5 80 160 644
Redeemed (184) (3,317) (2,177) (10,860)
--------------------------------------------------------------
Net Class I share transactions (160) (2,815) 167 10,119
--------------------------------------------------------------
Class A shares:
Issued -- 4 169 101
Issued in lieu of cash distributions 1 4 9 20
Redeemed (16) (67) (187) (157)
--------------------------------------------------------------
Net Class A share transactions (15) (59) (9) (36)
--------------------------------------------------------------
Class B shares:
Issued -- -- 148 153
Issued in lieu of cash distributions -- -- 2 --
Redeemed -- -- (96) (31)
--------------------------------------------------------------
Net Class B share transactions -- -- 54 122
--------------------------------------------------------------
Net increase (decrease) in shares (175) (2,874) 212 10,205
==============================================================
<FN>
(1) ON APRIL 30, 1997, CLASS A SHARES WERE REDESIGNATED CLASS I SHARES AND CLASS B SHARES WERE REDESIGNATED CLASS A SHARES.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
44
<PAGE>
<TABLE>
<CAPTION>
[LOGO OMITTED]
JUNE 30, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY INTERMEDIATE- PENNSYLVANIA
MUNICIPAL TERM GOVERNMENT MUNICIPAL GNMA
SECURITIES FUND SECURITIES FUND SECURITIES FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
1998 1997 1998 1997 1998 1997 1998 1997
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 3,258 $ 6,370 $ 958 $ 1,979 $ 888 $ 1,710 $ 188 $ 461
393 147 18 (150) 511 150 88 (30)
(855) 2,621 (34) 485 (676) 929 (94) 245
- ------------------------------------------------------------------------------------------------------------------------------------
2,796 9,138 942 2,314 723 2,789 182 676
- ------------------------------------------------------------------------------------------------------------------------------------
(2,874) (5,607) (920) (1,876) (885) (1,695) (161) (388)
(384) (762) (38) (104) (9) (15) (27) (73)
-- -- -- -- -- -- -- --
-- -- -- -- -- (77) -- --
-- -- -- -- -- (1) -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
(3,258) (6,369) (958) (1,980) (894) (1,788) (188) (461)
- ------------------------------------------------------------------------------------------------------------------------------------
9,254 25,303 6,255 4,041 3,146 8,097 645 1,865
-- 108,448 -- 13,328 -- 37,351 -- --
288 757 309 845 22 57 99 281
(13,226) (26,652) (3,416) (11,473) (5,599) (8,028) (5,127) (2,708)
- ------------------------------------------------------------------------------------------------------------------------------------
(3,684) 107,856 3,148 6,741 (2,431) 37,477 (4,383) (562)
- ------------------------------------------------------------------------------------------------------------------------------------
1,476 2,828 533 1 80 123 34 11
277 666 30 88 6 13 17 48
(1,716) (5,402) (658) (1,285) (3) (85) (363) (450)
- ---------------------------------------------------------------------------------------------------------------------------
37 (1,908) (95) (1,196) 83 51 (312) (391)
- ------------------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- -- -- --
(3,647) 105,948 3,053 5,545 (2,348) 37,528 (4,695) (953)
- ------------------------------------------------------------------------------------------------------------------------------------
(4,109) 108,717 3,037 5,879 (2,519) 38,529 (4,701) (738)
- ------------------------------------------------------------------------------------------------------------------------------------
149,653 40,936 33,136 27,257 42,538 4,009 7,258 7,996
- ------------------------------------------------------------------------------------------------------------------------------------
$145,544 $149,653 $36,173 $33,136 $40,019 $42,538 $2,557 $7,258
====================================================================================================================================
850 2,148 609 397 303 787 65 192
-- 10,125 -- 1,311 -- 3,676 -- --
26 70 30 83 2 5 10 29
(1,214) (2,273) (333) (1,129) (542) (781) (517) (279)
- ------------------------------------------------------------------------------------------------------------------------------------
(338) 10,070 306 662 (237) 3,687 (442) (58)
- ------------------------------------------------------------------------------------------------------------------------------------
136 262 52 -- 8 12 3 1
26 62 3 9 -- 1 2 5
(158) (503) (64) (127) -- (8) (37) (47)
- ------------------------------------------------------------------------------------------------------------------------------------
4 (179) (9) (118) 8 5 (32) (41)
- ------------------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
(334) 9,891 297 544 (229) 3,692 (474) (99)
====================================================================================================================================
</TABLE>
45
<PAGE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets (000)
FOR THE PERIOD ENDED JUNE 30, 1998 (UNAUDITED) AND THE YEAR ENDED DECEMBER 31, 1997
EQUITY FUNDS
--------------------------------------------------------------------
EQUITY GROWTH EQUITY VALUE
FUND (1) FUND
--------------------------------------------------------------------
1998 1997 1998 1997
--------------------------------------------------------------------
INVESTMENT ACTIVITIES:
<S> <C> <C> <C> <C>
Net investment income (loss) $ (108) $ 128 $ 1,020 $ 2,903
Net realized gain (loss) on investments 8,722 36,440 10,146 57,613
Net realized loss on foreign currency transactions -- -- -- --
Net change in unrealized depreciation on foreign
currency and translation of other assets and
liabilities in foreign currency -- -- -- --
Net change in unrealized appreciation (depreciation)
on investments 28,821 (14,365) 23,044 (10,507)
--------------------------------------------------------------------
Net increase in net assets resulting
from operations 37,435 22,203 34,210 50,009
--------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class I (2) -- (234) (937) (2,778)
Class A (2) -- -- (50) (119)
Class B -- -- (4) (8)
Realized capital gains:
Class I (2) -- (31,061) -- (53,922)
Class A (2) -- (51) -- (3,066)
Class B -- (47) -- (1,012)
--------------------------------------------------------------------
Total distributions -- (31,393) (991) (60,905)
--------------------------------------------------------------------
SHARE TRANSACTIONS:
Class I: (2)
Proceeds from shares issued 4,028 12,703 13,013 30,001
Shares issued in connection with
acquisition of common trust fund assets -- 221,033 -- 84,527
Reinvestment of cash distributions -- 31,109 229 55,164
Cost of shares redeemed (28,961) (77,949) (61,725) (33,977)
--------------------------------------------------------------------
Net Class I share transactions (24,933) 186,896 (48,483) 135,715
--------------------------------------------------------------------
Class A: (2)
Proceeds from shares issued 2,192 882 2,972 3,622
Reinvestment of cash distributions -- 52 23 3,156
Cost of shares redeemed (94) (451) (1,383) (2,347)
--------------------------------------------------------------------
Net Class A share transactions 2,098 483 1,612 4,431
--------------------------------------------------------------------
Class B:
Proceeds from shares issued 1,602 356 9,057 5,303
Reinvestment of cash distributions -- 46 8 1,019
Cost of shares redeemed (53) (1) (974) (411)
--------------------------------------------------------------------
Net Class B share transactions 1,549 401 8,091 5,911
--------------------------------------------------------------------
Increase (decrease) in net assets from
share transactions (21,287) 187,780 (38,780) 146,057
--------------------------------------------------------------------
Total increase (decrease) in net assets 16,149 178,590 (5,561) 135,161
--------------------------------------------------------------------
NET ASSETS:
Beginning of period 178,590 -- 261,876 126,715
--------------------------------------------------------------------
NET ASSETS:
End of period $194,739 $178,590 $256,315 $261,876
====================================================================
SHARES ISSUED AND REDEEMED:
Class I shares:
Issued 392 1,139 912 2,011
Shares issued in connection with
acquisition of common trust fund assets -- 22,103 -- 6,015
Issued in lieu of cash distributions -- 3,464 15 4,300
Redeemed (2,836) (7,458) (4,721) (2,230)
--------------------------------------------------------------------
Net Class I share transactions (2,444) 19,248 (3,794) 10,096
--------------------------------------------------------------------
Class A shares:
Issued 211 80 210 241
Issued in lieu of cash distributions -- 6 2 246
Redeemed (9) (39) (98) (156)
--------------------------------------------------------------------
Net Class A share transactions 202 47 114 331
--------------------------------------------------------------------
Class B shares:
Issued 152 34 637 340
Issued in lieu of cash distributions -- 5 1 80
Redeemed (5) -- (68) (26)
--------------------------------------------------------------------
Net Class B share transactions 147 39 570 394
--------------------------------------------------------------------
Net increase (decrease) in shares (2,095) 19,334 (3,110) 10,821
--------------------------------------------------------------------
<FN>
(1) THE EQUITY GROWTH FUND COMMENCED OPERATIONS ON FEBRUARY 3, 1997.
(2) ON APRIL 30, 1997, CLASS A SHARES WERE REDESIGNATED CLASS I SHARES AND CLASS B SHARES WERE REDESIGNATED CLASS A SHARES.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
The accompanying notes are an integral part of thefinancial statements.
</FN>
</TABLE>
46
<PAGE>
<TABLE>
<CAPTION>
[LOGO OMITTED]
JUNE 30, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME MID CAP BALANCED INTERNATIONAL EQUITY
FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
1998 1997 1998 1997 1998 1997 1998 1997
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,259 $ 2,900 $ (77) $ 145 $ 445 $ 856 $ 93 $ 115
6,254 27,335 12,990 4,565 1,772 3,464 (592) 468
-- -- -- -- -- -- -- (18)
-- -- -- -- -- -- (2) (1)
4,259 (3,525) (9,564) 5,170 2,836 1,572 2,510 (551)
- ------------------------------------------------------------------------------------------------------------------------------------
11,772 26,710 3,349 9,880 5,053 5,892 2,009 13
- ------------------------------------------------------------------------------------------------------------------------------------
(1,002) (2,560) -- (145) (295) (600) -- (109)
(163) (294) -- (7) (92) (227) -- (3)
(90) (47) -- -- (55) (27) -- --
-- (24,107) -- (3,654) -- (2,362) -- (1,120)
-- (3,179) -- (392) -- (954) -- (51)
-- (1,264) -- -- -- (364) -- (7)
- ------------------------------------------------------------------------------------------------------------------------------------
(1,255) (31,451) -- (4,198) (442) (4,534) -- (1,290)
- ------------------------------------------------------------------------------------------------------------------------------------
13,323 34,867 2,300 2,701 6,079 5,476 701 2,630
142 34,921 -- -- -- -- -- --
-- 24,716 -- 3,686 124 2,647 -- 813
(53,363) (17,108) (36,940) (10,946) (2,607) (4,106) (2,212) (2,910)
- ------------------------------------------------------------------------------------------------------------------------------------
(39,898) 77,396 (34,640) (4,559) 3,596 4,017 (1,511) 533
- ------------------------------------------------------------------------------------------------------------------------------------
2,935 3,142 70 245 552 1,031 90 102
83 3,438 -- 397 47 1,155 -- 54
(1,817) (2,060) (1,998) (1,895) (794) (1,915) (172) (231)
- ------------------------------------------------------------------------------------------------------------------------------------
1,201 4,520 (1,928) (1,253) (195) 271 (82) (75)
- ------------------------------------------------------------------------------------------------------------------------------------
9,489 7,936 -- -- 6,632 4,572 97 167
43 1,301 -- -- 24 390 -- 7
(937) (375) -- -- (287) (236) (19) (39)
- ------------------------------------------------------------------------------------------------------------------------------------
8,595 8,862 -- -- 6,369 4,726 78 135
- ------------------------------------------------------------------------------------------------------------------------------------
(30,102) 90,778 (36,568) (5,812) 9,770 9,014 (1,515) 593
- ------------------------------------------------------------------------------------------------------------------------------------
(19,585) 86,037 (33,219) (130) 14,381 10,372 494 (684)
- ------------------------------------------------------------------------------------------------------------------------------------
156,516 70,479 51,272 51,402 38,710 28,338 14,926 15,610
- ------------------------------------------------------------------------------------------------------------------------------------
$136,931 $156,516 $18,053 $51,272 $53,091 $38,710 $15,420 $14,926
====================================================================================================================================
961 2,405 145 185 475 447 61 224
10 2,525 -- -- -- -- -- --
-- 1,867 -- 252 9 220 -- 77
(4,061) (1,147) (2,354) (738) (201) (327) (200) (253)
- ------------------------------------------------------------------------------------------------------------------------------------
(3,090) 5,650 (2,209) (301) 283 340 (139) 48
- ------------------------------------------------------------------------------------------------------------------------------------
204 211 4 18 43 84 8 9
6 258 -- 27 4 95 -- 5
(129) (139) (125) (135) (62) (153) (15) (20)
- ------------------------------------------------------------------------------------------------------------------------------------
81 330 (121) (90) (15) 26 (7) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
676 522 -- -- 518 357 9 14
3 99 -- -- 2 33 -- 1
(66) (24) -- -- (22) (19) (2) (4)
- ------------------------------------------------------------------------------------------------------------------------------------
613 597 -- -- 498 371 7 11
- ------------------------------------------------------------------------------------------------------------------------------------
(2,396) 6,577 (2,330) (391) 766 737 (139) 53
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
47
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED DECEMBER 31 AND FOR THE
PERIOD ENDED JUNE 30, 1998, (UNAUDITED)
RATIO RATIO OF RATIO OF NET
OF NET EXPENSES INVESTMENT
NET ASSET DISTRIBUTIONS RATIO OF INVESTMENT TO AVERAGE INCOME TO
VALUE NET FROM NET NET ASSET NET ASSETS EXPENSES INCOME NET ASSETS AVERAGE NET ASSETS
BEGINNING INVESTMENT INVESTMENT VALUE END TOTAL END OF TO AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING
OF PERIOD INCOME INCOME OF PERIOD RETURN PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS)
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY SECURITIES MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1998* $1.00 $0.02 $(0.02) $1.00 4.79% $616,869 0.63% 4.70% 0.63% 4.70%
1997 1.00 0.04 (0.04) 1.00 4.55 487,196 0.65 4.45 0.66 4.44
1996 1.00 0.04 (0.04) 1.00 4.53 504,729 0.65 4.44 0.65 4.44
1995 1.00 0.05 (0.05) 1.00 5.05 463,531 0.65 4.92 0.65 4.92
1994 1.00 0.03 (0.03) 1.00 3.44 465,125 0.62 3.39 0.62 3.39
1993 1.00 0.02 (0.02) 1.00 2.46 420,947 0.64 2.42 0.64 2.42
CLASS A
1998* $1.00 $0.02 $(0.02) $1.00 4.52% $ 33,808 0.88% 4.46% 0.88% 4.46%
1997 1.00 0.04 (0.04) 1.00 4.28 12,492 0.90 4.22 0.90 4.22
1996 1.00 0.04 (0.04) 1.00 4.27 3,503 0.90 4.19 0.90 4.19
1995 1.00 0.05 (0.05) 1.00 4.80 3,532 0.90 4.66 0.90 4.66
1994 1.00 0.03 (0.03) 1.00 3.17 633 0.87 3.07 0.87 3.07
1993 1.00 0.02 (0.02) 1.00 2.21 834 0.89 2.17 0.89 2.17
- ------------------------------------------------------------------------------------------------------------------------------------
PRIME OBLIGATION MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1998* $1.00 $0.02 $(0.02) $1.00 5.10% $437,768 0.64% 4.99% 0.64% 4.99%
1997 1.00 0.05 (0.05) 1.00 5.02 400,689 0.65 4.90 0.66 4.89
1996 1.00 0.05 (0.05) 1.00 4.83 401,423 0.65 4.73 0.67 4.71
1995 1.00 0.05 (0.05) 1.00 5.40 259,667 0.65 5.26 0.66 5.25
1994 1.00 0.04 (0.04) 1.00 3.67 157,378 0.62 3.68 0.62 3.68
1993 1.00 0.03 (0.03) 1.00 2.65 129,780 0.64 2.63 0.64 2.63
CLASS A
1998* $1.00 $0.02 $(0.02) $1.00 4.84% $ 19,027 0.89% 4.73% 0.89% 4.73%
1997 1.00 0.05 (0.05) 1.00 4.75 17,514 0.90 4.67 0.91 4.66
1996 1.00 0.04 (0.04) 1.00 4.58 11,347 0.90 4.48 0.92 4.46
1995 1.00 0.05 (0.05) 1.00 5.14 6,925 0.90 5.01 0.91 5.00
1994 1.00 0.03 (0.03) 1.00 3.40 3,281 0.87 3.89 0.87 3.89
1993 1.00 0.02 (0.02) 1.00 2.40 377 0.89 2.38 0.89 2.38
CLASS B
1998* $1.00 $0.02 $(0.02) $1.00 4.07% $ 64 1.64% 3.98% 1.64% 3.98%
1997 (1) 1.00 -- -- 1.00 5.48* 10 1.65 8.53 3.01 7.17
CLASSS
1998* $1.00 $0.02 $(0.02) $1.00 4.74% $ 53,352 0.99% 4.63% 0.99% 4.63%
1997 (2) 1.00 0.02 (0.02) 1.00 4.69* 30,520 1.00 4.67 1.02 4.65
- ------------------------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1998* $1.00 $0.02 $(0.02) $1.00 3.08% $ 74,618 0.65% 3.04% 0.67% 3.02%
1997 1.00 0.03 (0.03) 1.00 3.10 75,097 0.65 3.05 0.67 3.03
1996 1.00 0.03 (0.03) 1.00 2.94 67,082 0.65 2.90 0.68 2.87
1995 1.00 0.03 (0.03) 1.00 3.42 63,628 0.65 3.37 0.72 3.30
1994 1.00 0.02 (0.02) 1.00 2.27 37,745 0.65 2.27 0.68 2.24
1993 1.00 0.02 (0.02) 1.00 1.99 32,994 0.65 1.97 0.69 1.93
CLASS A
1998* $1.00 $0.01 $(0.01) $1.00 2.83% $ 7,860 0.90% 2.80% 0.92% 2.78%
1997 1.00 0.03 (0.03) 1.00 2.84 8,509 0.90 2.82 0.92 2.80
1996 1.00 0.03 (0.03) 1.00 2.70 3,852 0.90 2.65 0.93 2.62
1995 1.00 0.03 (0.03) 1.00 3.17 5,238 0.90 3.14 0.96 3.08
1994 1.00 0.02 (0.02) 1.00 2.02 2,790 0.90 1.97 0.92 1.95
1993 1.00 0.02 (0.02) 1.00 1.74 3,866 0.90 1.72 0.94 1.68
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
* FOR THE SIX MONTH PERIOD ENDED JUNE 30, 1998. ALL RATIOS INCLUDING TOTAL RETURN HAVE BEEN ANNUALIZED.
(1) COMMENCED OPERATIONS ON DECEMBER 30, 1997. RATIOS FOR THIS PERIOD HAVE BEEN ANNUALIZED.
(2) COMMENCED OPERATIONS ON AUGUST 18, 1997. RATIOS FOR THIS PERIOD HAVE BEEN ANNUALIZED.
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
<PAGE>
48
<TABLE>
<CAPTION>
[LOGO OMITTED]
JUNE 30, 1998
RATIO OF
REALIZED AND NET
NET ASSET UNREALIZED DISTRIBUTIONS DISTRIBUTIONS NET ASSETS RATIO OF INVESTMENT
VALUE NET GAINS OR FROM NET FROM NET ASSET END OF EXPENSES INCOME
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT CAPITAL VALUE END TOTAL PERIOD TO AVERAGE TO AVERAGE
OF PERIOD INCOME SECURITIES INCOME GAINS OF PERIOD RETURN (000) NET ASSETS NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY SECURITIES PLUS MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1998* $1.00 $0.02 -- $(0.02) -- $1.00 4.87% $ 60,791 0.55% 4.80%
1997 1.00 0.05 -- (0.05) -- 1.00 4.89 68,658 0.55 4.78
1996 1.00 0.05 -- (0.05) -- 1.00 4.82 65,173 0.55 4.72
1995 1.00 0.05 -- (0.05) -- 1.00 5.40 64,697 0.55 5.26
1994 1.00 0.04 -- (0.04) -- 1.00 3.60 46,301 0.55 3.42
1993(1) 1.00 0.02 -- (0.02) -- 1.00 2.66* 89,278 0.55 2.62
- ------------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SELECT MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1998* $1.00 $0.03 -- $(0.03) -- $1.00 5.43% $ 95,296 0.30% 5.30%
1997(2) 1.00 0.03 -- (0.03) -- 1.00 5.38 61,522 0.30 5.32
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENT FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1998* $10.04 $0.23 -- $(0.23) -- $10.04 2.33%(+) $ 1,862 0.80% 4.62%
1997 10.01 0.47 $ 0.03 (0.47) -- 10.04 5.13 3,472 0.80 4.71
1996 10.02 0.48 (0.01) (0.48) -- 10.01 4.86 31,630 0.80 4.85
1995 9.97 0.55 0.05 (0.55) -- 10.02 6.19 30,642 0.80 5.52
1994 10.01 0.35 (0.04) (0.35) -- 9.97 3.21 29,187 0.80 3.51
1993 10.01 0.29 -- (0.29) -- 10.01 2.96 31,337 0.80 2.94
CLASS A
1998* $10.03 $0.22 -- $(0.22) -- $10.03 2.20%(+) $ 327 1.05% 4.37%
1997 10.02 0.44 $ 0.02 (0.45) -- 10.03 4.66 479 1.05 4.50
1996 10.05 0.45 (0.02) (0.46) -- 10.02 4.39 1,076 1.05 4.60
1995 9.98 0.53 0.07 (0.53) -- 10.05 6.13 2,043 1.05 5.27
1994 10.03 0.33 (0.05) (0.33) -- 9.98 2.85 769 1.05 3.50
1993 10.01 0.28 0.01 (0.27) -- 10.03 2.90 205 1.05 2.09
- ------------------------------------------------------------------------------------------------------------------------------------
FIXED INCOME FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1998* $10.38 $0.30 $ 0.03 $(0.30) -- $10.41 3.18%(+) $209,251 0.80% 5.75%
1997 10.21 0.60 0.17 (0.60) -- 10.38 7.78 206,810 0.80 5.90
1996 10.49 0.57 (0.28) (0.57) -- 10.21 2.94 100,129 0.80 5.60
1995 9.44 0.59 1.05 (0.59) -- 10.49 17.76 113,509 0.80 5.83
1994 10.68 0.59 (1.18) (0.59) $(0.06) 9.44 (5.66) 96,558 0.80 5.91
1993 10.38 0.61 0.52 (0.61) (0.22) 10.68 11.05 113,892 0.80 5.59
CLASS A
1998* $10.36 $0.28 $ 0.04 $(0.29) -- $10.39 3.06%(+) $ 4,446 1.05% 5.50%
1997 10.20 0.57 0.16 (0.57) -- 10.36 7.41 4,526 1.05 5.60
1996 10.48 0.55 (0.28) (0.55) -- 10.20 2.68 4,830 1.05 5.35
1995 9.44 0.56 1.04 (0.56) -- 10.48 17.36 5,844 1.05 5.58
1994 10.68 0.56 (1.18) (0.56) $(0.06) 9.44 (5.90) 5,525 1.05 5.65
1993 10.38 0.58 0.52 (0.58) (0.22) 10.68 10.76 6,519 1.05 5.24
CLASS B
1998* $10.39 $0.25 $ 0.04 $(0.25) -- $10.43 2.78%(+) $ 1,841 1.80% 4.75%
1997(3) 10.11 0.31 0.28 (0.31) -- 10.39 9.41 1,268 1.80 5.02
- ------------------------------------------------------------------------------------------------------------------------------------
RATIO OF RATIO OF NET
EXPENSES INVESTMENT
TO AVERAGE INCOME TO
NET ASSETS AVERAGE NET ASSETS PORTFOLIO
(EXCLUDING (EXCLUDING TURNOVER
WAIVERS) WAIVERS) RATE
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY SECURITIES PLUS MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1998* 0.70% 4.65% n/a
1997 0.65 4.68 n/a
1996 0.65 4.62 n/a
1995 0.62 5.19 n/a
1994 0.63 3.34 n/a
1993(1) 0.68 2.49 n/a
- ------------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SELECT MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1998* 0.33% 5.27% n/a
1997(2) 0.35 5.27 n/a
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENT FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1998* 1.38% 4.04% 0.00%
1997 1.02 4.49 0.00
1996 0.96 4.69 33.83
1995 0.97 5.35 64.85
1994 0.94 3.37 68.39
1993 0.95 2.79 81.92
CLASS A
1998* 1.63% 3.79% 0.00%
1997 1.27 4.28 0.00
1996 1.21 4.44 33.83
1995 1.22 5.10 64.85
1994 1.20 3.35 68.39
1993 1.13 2.01 81.92
- ------------------------------------------------------------------------------------------------------------------------------------
FIXED INCOME FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
<S> <C> <C> <C>
1998* 0.90% 5.65% 25.46%
1997 0.91 5.79 80.34
1996 0.92 5.48 40.56
1995 0.91 5.72 35.49
1994 0.90 5.81 15.24
1993 0.91 5.48 49.49
CLASS A
1998* 1.15% 5.40% 25.46%
1997 1.16 5.49 80.34
1996 1.17 5.23 40.56
1995 1.16 5.47 35.49
1994 1.15 5.55 15.24
1993 1.13 5.16 49.49
CLASS B
1998* 1.90% 4.65% 25.46%
1997(4) 1.86 4.96 80.34
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
* FOR THE SIX MONTH PERIOD ENDED JUNE 30, 1998. ALL RATIOS INCLUDING TOTAL RETURN HAVE BEEN ANNUALIZED.
(+) TOTAL RETURN DOES NOT REFLECT SALES LOADS ON CLASS A AND CLASS B SHARES. TOTAL RETURN FOR THE SIX MONTH PERIOD ENDING
JUNE 30, 1998 FOR CLASSES I, A, & B ARE NOT ANNUALIZED.
(1) COMMENCED OPERATIONS ON MAY 3, 1993. RATIOS FOR THIS PERIOD HAVE BEEN ANNUALIZED.
(2) COMMENCED OPERATIONS ON JULY 1, 1997. RATIOS FOR THIS PERIOD HAVE BEEN ANNUALIZED.
(3) COMMENCED OPERATIONS ON MAY 16, 1997. RATIOS FOR THIS PERIOD HAVE BEEN ANNUALIZED.
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
49
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED DECEMBER 31 AND FOR THE
PERIOD ENDED JUNE 30, 1998, (UNAUDITED)
RATIO OF
REALIZED AND NET
NET ASSET UNREALIZED DISTRIBUTIONS DISTRIBUTIONS NET ASSETS RATIO OF INVESTMENT
VALUE NET GAINS OR FROM NET FROM NET ASSET END OF EXPENSES INCOME
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT CAPITAL VALUE END TOTAL PERIOD TO AVERAGE TO AVERAGE
OF PERIOD INCOME SECURITIES INCOME GAINS OF PERIOD RETURN+ (000) NET ASSETS NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY MUNICIPAL SECURITIES FUND
- ------------------------------------------------------------------------------------------------------------------------------
CLASS I
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1998 $10.92 $0.24 $ (0.04) $(0.24) -- $10.88 1.86% $126,916 0.80%* 4.46%*
1997 10.71 0.49 0.21 (0.49) -- 10.92 6.76 131,002 0.80 4.68
1996 10.79 0.44 (0.08) (0.44) -- 10.71 3.42 20,689 0.67 4.13
1995 9.93 0.47 0.86 (0.47) -- 10.79 13.57 28,080 0.41 4.43
1994 10.85 0.48 (0.92) (0.48) -- 9.93 (4.12) 19,977 0.27 4.65
1993 10.29 0.50 0.56 (0.50) -- 10.85 10.48 27,064 0.20 4.57
CLASS A
1998 $10.89 $0.23 $(0.04) $(0.23) -- $10.85 1.73% $ 18,628 1.05%* 4.21%*
1997 10.70 0.49 0.17 (0.47) -- 10.89 6.31 18,651 1.05 4.35
1996 10.79 0.41 (0.09) (0.41) -- 10.70 3.08 20,247 0.92 3.88
1995 9.93 0.44 0.86 (0.44) -- 10.79 13.30 25,954 0.66 4.18
1994 10.85 0.45 (0.92) (0.45) -- 9.93 (4.35) 21,195 0.52 4.40
1993 10.29 0.46 0.56 (0.46) -- 10.85 10.09 22,061 0.45 4.34
- ------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE-TERM GOVERNMENT SECURITIES FUND
- ------------------------------------------------------------------------------------------------------------------------------
CLASS I
1998 $10.27 $0.29 $(0.01) $(0.29) -- $10.26 2.72% $ 34,872 0.80%* 5.62%*
1997 10.16 0.58 0.11 (0.58) -- 10.27 6.96 31,739 0.80 5.69
1996 10.37 0.53 (0.21) (0.53) -- 10.16 3.26 24,679 0.80 5.26
1995 9.51 0.54 0.86 (0.54) -- 10.37 15.00 28,877 0.80 5.33
1994 10.53 0.51 (1.01) (0.51) $(0.01) 9.51 (4.85) 26,277 0.80 5.13
1993 10.23 0.52 0.32 (0.52) (0.02) 10.53 8.32 34,075 0.80 4.87
CLASS A
1998 $10.26 $0.28 -- $(0.28) -- $10.26 2.72% $ 1,301 1.05%* 5.37%*
1997 10.16 0.55 $ 0.10 (0.55) -- 10.26 6.60 1,397 1.05 5.40
1996 10.37 0.52 (0.22) (0.51) -- 10.16 3.01 2,578 1.05 5.01
1995 9.51 0.51 0.86 (0.51) -- 10.37 14.71 3,665 1.05 5.08
1994 10.53 0.49 (1.01) (0.49) $(0.01) 9.51 (5.09) 2,372 1.05 4.83
1993 10.24 0.49 0.31 (0.49) (0.02) 10.53 7.94 4,903 1.05 4.59
- ------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA MUNICIPAL SECURITIES FUND
- ------------------------------------------------------------------------------------------------------------------------------
CLASS I
1998 $10.41 $0.22 $(0.04) $(0.22) -- $10.37 1.79% $ 39,533 0.80%* 4.33%*
1997 10.17 0.45 0.26 (0.45) $(0.02) 10.41 7.18 42,134 0.80 4.47
1996 10.23 0.44 (0.06) (0.44) -- 10.17 3.89 3,665 0.69 4.42
1995 9.55 0.40 0.68 (0.40) -- 10.23 11.53 3,345 0.80 4.05
1994 10.17 0.36 (0.62) (0.36) -- 9.55 (2.58) 2,734 0.80 3.67
1993 (1) 10.00 0.23 0.17 (0.23) -- 10.17 6.01 2,922 0.80 3.35
CLASS A
1998 $10.38 $0.21 $(0.02) $(0.21) $(0.02) $10.34 1.67% $ 486 1.05%* 4.08%*
1997 10.17 0.43 0.23 (0.43) (0.02) 10.38 6.63 404 1.05 4.18
1996 10.22 0.42 (0.05) (0.42) -- 10.17 3.74 344 0.94 4.19
1995 9.55 0.38 0.67 (0.38) -- 10.22 11.15 269 1.05 3.80
1994 10.17 0.33 (0.62) (0.33) -- 9.55 (2.83) 336 1.05 3.42
1993 (2) 9.98 0.20 0.19 (0.20) -- 10.17 6.28* 289 1.05 3.24
- ------------------------------------------------------------------------------------------------------------------------------
RATIO OF RATIO OF NET
EXPENSES INVESTMENT
TO AVERAGE INCOME TO
NET ASSETS AVERAGE NET ASSETS PORTFOLIO
(EXCLUDING (EXCLUDING TURNOVER
WAIVERS) WAIVERS) RATE
- ------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY MUNICIPAL SECURITIES FUND
- ------------------------------------------------------------------------------------------------------------------------------
CLASS I
<S> <C> <C> <C>
1998 0.93%* 4.33%* 10.17%
1997 0.94 4.54 22.85
1996 0.93 3.87 13.93
1995 0.93 3.91 2.83
1994 0.93 3.99 16.81
1993 1.00 3.77 23.83
CLASS A
1998 1.18%* 4.08%* 10.17%
1997 1.19 4.21 22.85
1996 1.18 3.62 13.93
1995 1.18 3.66 2.83
1994 1.18 3.74 16.81
1993 1.23 3.54 23.83
- ------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE-TERM GOVERNMENT SECURITIES FUND
- ------------------------------------------------------------------------------------------------------------------------------
CLASS I
1998 0.94%* 5.48%* 9.48%
1997 0.94 5.55 57.82
1996 0.87 5.19 40.60
1995 1.05 5.08 68.29
1994 0.95 4.98 40.27
1993 1.00 4.67 31.69
CLASS A
1998 1.19%* 5.23%* 9.48%
1997 1.19 5.26 57.82
1996 1.12 4.94 40.60
1995 1.30 4.83 68.29
1994 1.20 4.68 40.27
1993 1.23 4.41 31.69
- ------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA MUNICIPAL SECURITIES FUND
- ------------------------------------------------------------------------------------------------------------------------------
CLASS I
1998 0.96%* 4.17%* 31.91%
1997 0.96 4.31 71.89
1996 1.49 3.62 25.88
1995 1.27 3.58 36.92
1994 1.61 2.86 38.20
1993 (3) 1.48 2.67 16.51
CLASS A
1998 1.21%* 3.92%* 31.91%
1997 1.21 4.02 71.89
1996 1.74 3.39 25.88
1995 1.55 3.30 36.92
1994 1.92 2.55 38.20
1993 (4) 1.48 2.81 16.51
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
* ANNUALIZED
(+) TOTAL RETURN DOES NOT REFLECT SALES LOADS ON CLASS A AND CLASS B SHARES.
(1) COMMENCED OPERATIONS ON MAY 3, 1993. RATIOS FOR THIS PERIOD HAVE BEEN ANNUALIZED.
(2) COMMENCED OPERATIONS ON MAY 13, 1993. RATIOS FOR THIS PERIOD HAVE BEEN ANNUALIZED.
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
50
<PAGE>
<TABLE>
<CAPTION>
[LOGO OMITTED]
JUNE 30, 1998
RATIO OF
REALIZED AND NET
NET ASSET UNREALIZED DISTRIBUTIONS DISTRIBUTIONS NET ASSETS RATIO OF INVESTMENT
VALUE NET GAINS OR FROM NET FROM NET ASSET END OF EXPENSES INCOME
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT CAPITAL VALUE END TOTAL PERIOD TO AVERAGE TO AVERAGE
OF PERIOD INCOME SECURITIES INCOME GAINS OF PERIOD RETURN+ (000) NET ASSETS NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
GNMA FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1998 $ 9.93 $ 0.27 $ 0.02 $(0.30) -- $ 9.92 2.74% $ 1,803 0.80%* 5.85%*
1997 9.63 0.62 0.30 (0.62) -- 9.93 9.88 6,191 0.80 6.37
1996 9.94 0.60 (0.31) (0.60) -- 9.63 3.09 6,570 0.80 6.23
1995 8.85 0.60 1.09 (0.60) -- 9.94 19.52 8,750 0.80 6.29
1994 9.85 0.54 (1.00) (0.53) $(0.01) 8.85 (4.71) 6,983 0.80 5.72
1993 (1) 10.00 0.34 (0.15) (0.34) -- 9.85 2.80* 10,900 0.80 4.48
CLASS A
1998 $ 9.90 $ 0.31 $(0.02) $(0.29) -- $ 9.90 2.73% $ 754 1.05%* 5.50%*
1997 9.61 0.61 0.27 (0.59) -- 9.90 9.50 1,067 1.05 6.13
1996 9.93 0.57 (0.32) (0.57) -- 9.61 2.73 1,426 1.05 5.98
1995 8.84 0.58 1.08 (0.57) -- 9.93 19.24 1,761 1.05 6.05
1994 9.85 0.50 (1.00) (0.50) $(0.01) 8.84 (5.05) 1,853 1.05 5.47
1993 (2) 10.01 0.31 (0.16) (0.31) -- 9.85 2.31* 2,633 1.05 4.70
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY GROWTH FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1998 $ 9.23 $ 0.01 $2.07 $(0.01) -- $11.30 22.29% $189,854 0.80%* (0.11)%*
1997 (3) 10.00 0.01 1.22 (0.01) $(1.98) 9.24 14.17* 177,801 0.80 0.07
CLASS A
1998 $ 9.25 -- $2.05 -- -- $11.30 22.16% $ 2,810 1.05%* (0.36)%*
1997 (3) 10.00 (0.01) 1.24 -- $(1.98) 9.25 14.13* 432 1.05 (0.28)
CLASS B
1998 $ 9.18 $(0.01) $2.01 -- -- $11.18 21.79% $ 2,075 1.80%* (1.13)%*
1997 (4) 10.41 (0.02) 0.77 -- $(1.98) 9.18 13.01* 357 1.80 (1.08)
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY VALUE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1998 $12.89 $ 0.06 $2.01 $(0.06) -- $14.90 16.08% $224,208 0.80%* 0.90%*
1997 13.35 0.18 3.20 (0.18) $(3.66) 12.89 25.71 242,881 0.80 1.26
1996 12.81 0.22 2.54 (0.22) (2.00) 13.35 21.69 116,715 0.80 1.67
1995 10.19 0.25 3.46 (0.25) (0.84) 12.81 36.71 82,677 0.80 2.08
1994 11.10 0.21 (0.83) (0.21) (0.08) 10.19 (5.61) 61,407 0.80 1.92
1993 10.64 0.18 0.46 (0.18) -- 11.10 6.12 67,383 0.80 1.74
CLASS A
1998 $12.90 $ 0.05 $2.01 $(0.05) -- $14.91 15.93% $ 17,780 1.05%* 0.66%*
1997 13.35 0.15 3.20 (0.14) $(3.66) 12.90 25.51 13,923 1.05 0.98
1996 12.83 0.19 2.51 (0.18) (2.00) 13.35 21.15 10,000 1.05 1.42
1995 10.21 0.21 3.47 (0.22) (0.84) 12.83 36.35 7,644 1.05 1.83
1994 11.12 0.18 (0.83) (0.18) (0.08) 10.21 (5.83) 3,031 1.05 1.67
1993 10.66 0.16 0.46 (0.16) -- 11.12 5.85 2,741 1.05 1.51
CLASS B
1998 $12.87 $ 0.01 $1.99 $(0.01) -- $14.86 15.50% $ 14,327 1.80%* (0.08)%*
1997 (6) 14.81 0.04 1.73 (0.05) $(3.66) 12.87 19.17* 5,072 1.80 0.09
- ------------------------------------------------------------------------------------------------------------------------------------
RATIO OF RATIO OF NET
EXPENSES INVESTMENT
TO AVERAGE INCOME TO
NET ASSETS AVERAGE NET ASSETS PORTFOLIO
(EXCLUDING (EXCLUDING TURNOVER
WAIVERS) WAIVERS) RATE
- ------------------------------------------------------------------------------------------------------------------------------------
GNMA FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
<S> <C> <C> <C>
1998 1.47%* 5.18%* 9.00%
1997 1.08 6.09 0.00
1996 1.16 5.87 5.77
1995 1.13 5.96 9.69
1994 0.97 5.55 102.77
1993 (1) 1.08 4.20 252.73
CLASS A
1998 1.72%* 4.83%* 9.00%
1997 1.33 5.85 0.00
1996 1.41 5.62 5.77
1995 1.37 5.73 9.69
1994 1.22 5.30 102.77
1993 (2) 1.29 4.46 252.73
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY GROWTH FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1998 1.05%* (0.36)%* 50.51%
1997 (3) 1.07 (0.20) 114.51
CLASS A
1998 1.30%* (0.61)%* 50.51%
1997 (3) 1.32 (0.55) 114.51
CLASS B
1998 2.05%* (1.38)%* 50.51%
1997 (4) 2.09 (1.37) 114.51
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY VALUE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1998 1.05%* 0.65%* 12.16%
1997 1.06 1.00 80.24
1996 1.08 1.39 85.30
1995 1.07 1.81 61.88
1994 1.06 1.66 44.98
1993 1.07 1.47 89.91
1992 (5) 1.10 1.52 45.68
CLASS A
1998 1.30%* 0.41%* 12.16%
1997 1.31 0.72 80.24
1996 1.33 1.14 85.30
1995 1.32 1.56 61.88
1994 1.31 1.41 44.98
1993 1.30 1.26 89.91
1992 (5) 1.36 1.33 45.68
CLASS B
1998 2.05%* (0.33)%* 12.16%
1997 (6) 2.07 (0.18) 80.24
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
* ANNUALIZED
(+) TOTAL RETURN DOES NOT REFLECT SALES LOADS ON CLASS A AND CLASS B SHARES.
(1) COMMENCED OPERATIONS ON MAY 3, 1993. RATIOS FOR THIS PERIOD HAVE BEEN ANNUALIZED.
(2) COMMENCED OPERATIONS ON MAY 5, 1993. RATIOS FOR THIS PERIOD HAVE BEEN ANNUALIZED.
(3) COMMENCED OPERATIONS ON FEBRUARY 3, 1997. RATIOS FOR THIS PERIOD HAVE BEEN ANNUALIZED.
(4) COMMENCED OPERATIONS ON MAY 21, 1997. RATIOS FOR THIS PERIOD HAVE BEEN ANNUALIZED.
(5) COMMENCED OPERATIONS MAY 12, 1997. RATIOS FOR THIS PERIOD HAVE BEEN ANNUALIZED.
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
51
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED DECEMBER 31 AND FOR THE PERIOD ENDED JUNE 30, 1998, (UNAUDITED)
RATIO OF
REALIZED AND NET
NET ASSET UNREALIZED DISTRIBUTIONS DISTRIBUTIONS NET ASSETS RATIO OF INVESTMENT
VALUE NET GAINS OR FROM NET FROM NET ASSET END OF EXPENSES INCOME
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT CAPITAL VALUE END TOTAL PERIOD TO AVERAGE TO AVERAGE
OF PERIOD INCOME SECURITIES INCOME GAINS OF PERIOD RETURN+ (000) NET ASSETS NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1998 $13.19 $0.14 $1.27 $(0.14) -- $14.46 10.71% $100,015 0.80%* 2.04%*
1997 13.32 0.32 2.95 (0.32) $(3.08) 13.19 25.04 131,968 0.80 2.34
1996 13.07 0.33 2.35 (0.34) (2.09) 13.32 21.01 58,035 0.80 2.55
1995 10.26 0.31 3.29 (0.31) (0.48) 13.07 35.55 44,202 0.80 2.61
1994 11.17 0.32 (0.81) (0.32) (0.10) 10.26 (4.42) 34,514 0.80 2.96
1993 10.72 0.29 0.80 (0.29) (0.35) 11.17 10.27 38,237 0.80 2.65
CLASS A
1998 $13.22 $0.13 $1.27 $(0.13) -- $14.49 10.56% $ 19,460 1.05%* 1.79%*
1997 13.35 0.29 2.94 (0.28) $(3.08) 13.22 24.68 16,686 1.05 2.05
1996 13.08 0.31 2.34 (0.29) (2.09) 13.35 20.70 12,444 1.05 2.30
1995 10.27 0.28 3.29 (0.28) (0.48) 13.08 35.21 9,612 1.05 2.36
1994 11.17 0.29 (0.80) (0.29) (0.10) 10.27 (4.56) 5,657 1.05 2.71
1993 10.73 0.28 0.78 (0.27) (0.35) 11.17 9.94 4,421 1.05 2.42
CLASS B
1998 $13.17 $0.08 $1.26 $(0.09) -- $14.42 10.13% $ 17,456 1.80%* 1.07%*
1997 (1) 14.34 0.15 1.94 (0.18) $(3.08) 13.17 22.87* 7,862 1.80 1.27
- ------------------------------------------------------------------------------------------------------------------------------------
MID CAP FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1998 $14.80 $(0.06) $1.17 -- -- $15.91 7.50% $ 14,437 0.80%* (0.46)%*
1997 13.33 0.04 2.65 $(0.04) $(1.18) 14.80 20.49 46,125 0.80 0.30
1996 12.55 0.09 1.59 (0.09) (0.81) 13.33 13.56 45,556 0.80 0.66
1995 10.83 0.15 1.95 (0.15) (0.23) 12.55 19.49 42,375 0.80 1.28
1994 12.32 0.12 (1.27) (0.12) (0.22) 10.83 (9.34) 33,448 0.80 1.06
1993 10.99 0.11 1.33 (0.11) -- 12.32 13.22 35,648 0.80 1.03
CLASS A
1998 $14.76 $(0.11) $1.18 -- -- $15.83 7.25% $ 3,616 1.05%* (0.76)%*
1997 13.31 0.01 2.64 $(0.02) $(1.18) 14.76 20.16 5,147 1.05 0.06
1996 12.53 0.05 1.59 (0.05) (0.81) 13.31 13.32 5,846 1.05 0.41
1995 10.82 0.12 1.94 (0.12) (0.23) 12.53 19.13 5,653 1.05 1.03
1994 12.31 0.10 (1.27) (0.10) (0.22) 10.82 (9.54) 4,567 1.05 0.85
1993 10.99 0.09 1.32 (0.09) -- 12.31 12.88 2,720 1.05 0.83
- ------------------------------------------------------------------------------------------------------------------------------------
BALANCED FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1998 $12.00 $0.13 $1.31 $(0.13) -- $13.31 12.01% $ 30,788 0.80%* 2.18%*
1997 11.39 0.32 1.88 (0.32) $(1.27) 12.00 19.68 24,362 0.80 2.67
1996 12.05 0.48 1.16 (0.47) (1.83) 11.39 13.77 19,243 0.80 3.68
1995 9.91 0.44 2.27 (0.44) (0.13) 12.05 27.76 32,145 0.80 3.89
1994 10.78 0.37 (0.86) (0.38) -- 9.91 (4.61) 26,921 0.80 3.64
1993 10.35 0.38 0.43 (0.38) -- 10.78 7.89 25,712 0.80 3.75
CLASS A
1998 $12.02 $0.12 $1.30 $(0.11) -- $13.33 11.86% $ 10,779 1.05%* 1.93%*
1997 11.40 0.26 1.92 (0.29) $(1.27) 12.02 19.46 9,901 1.05 2.44
1996 12.07 0.43 1.17 (0.44) (1.83) 11.40 13.39 9,095 1.05 3.43
1995 9.92 0.42 2.28 (0.42) (0.13) 12.07 27.53 8,452 1.05 3.64
1994 10.79 0.35 (0.87) (0.35) -- 9.92 (4.87) 6,737 1.05 3.39
1993 10.36 0.37 0.42 (0.36) -- 10.79 7.62 8,122 1.05 3.47
CLASS B
1998 $11.97 $0.08 $1.29 $(0.08) -- $13.26 11.44% $ 11,524 1.80%* 1.17%*
1997 (1) 11.93 0.15 1.34 (0.18) $(1.27) 11.97 19.45* 4,447 1.80 1.23
- ------------------------------------------------------------------------------------------------------------------------------------
RATIO OF RATIO OF NET
EXPENSES INVESTMENT
TO AVERAGE INCOME TO
NET ASSETS AVERAGE NET ASSETS PORTFOLIO
(EXCLUDING (EXCLUDING TURNOVER
WAIVERS) WAIVERS) RATE
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
<S> <C> <C> <C>
1998 1.10%* 1.74%* 10.71%
1997 1.09 2.05 76.67
1996 1.09 2.26 85.47
1995 1.10 2.31 42.97
1994 1.08 2.68 37.76
1993 1.10 2.35 89.89
CLASS A
1998 1.35%* 1.49%* 10.56%
1997 1.34 1.76 76.67
1996 1.34 2.01 85.47
1995 1.35 2.06 42.97
1994 1.33 2.43 37.76
1993 1.35 2.12 89.89
CLASS B
1998 2.10%* 0.77%* 10.13%
1997 (2) 2.13 0.94 76.67
- ------------------------------------------------------------------------------------------------------------------------------------
MID CAP FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1998 1.18%* (0.08)%* 7.50%
1997 1.09 0.01 59.80
1996 1.10 0.36 41.41
1995 1.10 0.98 32.96
1994 1.08 0.78 13.82
1993 1.10 0.73 24.49
CLASS A
1998 1.43%* (0.38)%* 7.25%
1997 1.34 (0.23) 59.80
1996 1.35 0.11 41.41
1995 1.35 0.73 32.96
1994 1.33 0.57 13.82
1993 1.35 0.53 24.49
- ------------------------------------------------------------------------------------------------------------------------------------
BALANCED FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1998 1.17%* 1.81%* 30.75%
1997 1.14 2.33 93.85
1996 1.11 3.37 43.80
1995 1.11 3.58 41.63
1994 1.09 3.35 27.15
1993 1.14 3.41 63.03
1992 (1) 1.20 3.48 82.76
CLASS A
1998 1.42%* 1.56%* 30.75%
1997 1.39 2.10 93.85
1996 1.36 3.12 43.80
1995 1.36 3.33 41.63
1994 1.34 3.10 27.15
1993 1.38 3.14 63.03
1992(1) 1.45 3.19 82.76
CLASS B
1998 2.17%* 0.80%* 30.75%
1997(2) 2.28 0.75 93.85
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
* ANNUALIZED
(+) TOTAL RETURN DOES NOT REFLECT SALES LOADS ON CLASS A AND CLASS B SHARES.
(1) COMMENCED OPERATIONS ON MAY 8, 1997. RATIOS FOR THIS PERIOD HAVE BEEN ANNUALIZED.
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
52
<PAGE>
<TABLE>
<CAPTION>
[LOGO OMITTED]
JUNE 30, 1998
RATIO OF
REALIZED AND NET
NET ASSET UNREALIZED DISTRIBUTIONS DISTRIBUTIONS NET ASSETS RATIO OF INVESTMENT
VALUE NET GAINS OR FROM NET FROM NET ASSET END OF EXPENSES INCOME
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT CAPITAL VALUE END TOTAL PERIOD TO AVERAGE TO AVERAGE
OF PERIOD INCOME(LOSS) SECURITIES INCOME GAINS OF PERIOD RETURN (000) NET ASSETS NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1998 $10.34 $ 0.07 $ 1.42 -- -- $11.83 14.41% $14,530 1.50%* 1.26%*
1997 11.23 0.08 (0.04) $(0.08) $(0.85) 10.34 0.25 14,143 1.50 0.95
1996 10.74 0.08 1.11 (0.08) (0.62) 11.23 11.17 14,822 1.50 0.85
1995 (1) 10.00 0.03 0.75 (0.02) (0.02) 10.74 7.81 9,990 1.50 0.79
CLASS A
1998 $10.33 $ 0.07 $ 1.41 -- -- $11.81 14.33% $ 676 1.75%* 0.99%*
1997 11.22 0.05 (0.04) $(0.05) $(0.85) 10.33 0.00 665 1.75 0.70
1996 10.73 0.09 1.06 (0.04) (0.62) 11.22 10.88 788 1.75 0.70
1995 (2) 10.00 0.01 0.75 (0.01) (0.02) 10.73 7.64 621 1.75 0.45
CLASS B
1998 $10.30 $ 0.03 $ 1.40 -- -- $11.73 13.88% $ 214 2.50%* 0.48%*
1997(3) 11.45 (0.03) (0.23) $(0.04) $(0.85) 10.30 (3.39) * 118 2.50 (0.60)%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIO OF RATIO OF NET
EXPENSES INVESTMENT
TO AVERAGE INCOME TO
NET ASSETS AVERAGE NET ASSETS PORTFOLIO
(EXCLUDING (EXCLUDING TURNOVER
WAIVERS) WAIVERS) RATE
- ------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
<S> <C> <C> <C>
1998 1.72%* 1.04%* 20.34%
1997 1.69 0.76 71.22
1996 1.73 0.62 67.03
1995 (1) 2.11 0.18 14.32
CLASS A
1998 1.97%* 0.77%* 20.34%
1997 1.95 0.50 71.22
1996 1.98 0.47 67.03
1995 (2) 2.38 (0.18) 14.32
CLASS B
1998 2.70%* 0.28%* 20.34%
1997 (3) 2.70 (0.80)% 71.22
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
* ANNUALIZED
(+) TOTAL RETURN DOES NOT REFLECT SALES LOADS ON CLASS A AND CLASS B SHARES.
(1) COMMENCED OPERATIONS ON MAY 1, 1995. RATIOS FOR THIS PERIOD HAVE BEEN ANNUALIZED.
(2) COMMENCED OPERATIONS ON MAY 4, 1995. RATIOS FOR THIS PERIOD HAVE BEEN ANNUALIZED.
(3) COMMENCED OPERATIONS ON MAY 7, 1997. RATIOS FOR THIS PERIOD HAVE BEEN ANNUALIZED.
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
53
<PAGE>
Notes to Financial Statements
1. ORGANIZATION
The Pillar Funds (the "Trust") is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as an open-end investment company with
seventeen funds: the U.S. Treasury Securities Money Market Fund, the Prime
Obligation Money Market Fund, the Tax-Exempt Money Market Fund, the U.S.
Treasury Securities Plus Money Market Fund, Institutional Select Money Market
Fund (the "Money Market Funds") the Short-Term Investment Fund, the Fixed Income
Fund, the New Jersey Municipal Securities Fund, the Intermediate-Term Government
Securities Fund, the Pennsylvania Municipal Securities Fund, the GNMA Fund, (the
"Fixed Income Funds") the Equity Growth Fund, the Equity Value Fund, the Equity
Income Fund, the Mid Cap Fund, the International Growth Fund (the "Equity
Funds") and the Balanced Fund. Each of the Funds is "diversified" for purposes
of the 1940 Act except for the New Jersey Municipal Securities Fund, the
Pennsylvania Municipal Securities Fund and the International Growth Fund, each
of which is a non-diversified Fund. Shares of the U.S. Treasury Securities Plus
Money Market Fund are offered exclusively to customers of the Money Desk of the
Bank Investment Division of Summit Bank. The minimum investment for this Fund is
$100,000. The financial statements included herein present information relating
to all of the Funds. The assets of each Fund are segregated and a shareholder's
interest is limited to the Fund in which shares are held. The Funds' prospectus
provides a description of each fund's investment objectives, policies and
strategies.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies followed by
the Trust.
SECURITY VALUATION--The value of investment securities held by the Money
Market Funds are stated at amortized cost, which approximates market value.
Under this valuation method, purchase discounts and premiums are accreted and
amortized ratably to maturity and are included in interest income.
Investment in equity securities that are traded on a national securities
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. Restricted securities for
which quotations are not readily available are valued at fair value using
methods determined in good faith under general trustee supervision.
FEDERAL INCOME TAXES--It is each Fund's intention to qualify as a regulated
investment company for Federal income tax purposes and to distribute all of its
taxable income and net capital gains. Accordingly, no provisions for Federal
income taxes are required.
The International Equity Fund may be subject to taxes imposed by countries
in which it invests with respect to its investments in issuers existing or
operating in such countries. Such taxes are generally based on either income
earned or repatriated. The International Growth Fund accrues such taxes when
the related income is earned.
FOREIGN CURRENCY TRANSLATION--The books and records of the International
Equity Fund are maintained in U.S. dollars. Foreign currency amounts are
translated into U.S. dollars on the following basis: o market value of
investment securities, other assets and liabilities at the current rate of
exchange; and o purchases and sales of investment securities, income and
expenses at the relevant rates of exchange prevailing on the respective dates of
such transactions.
The International Equity Fund does not isolate that portion of gains and
losses on equity investment securities that is due to changes in foreign
exchange rates from that which is due to changes in market prices of such
securities.
The International Equity Fund reports gains and losses on foreign currency
related transactions as realized and unrealized gains and losses for financial
reporting purposes, whereas such gains and losses are treated as ordinary income
or loss for Federal income tax purposes.
54
<PAGE>
[LOGO OMITTED]
JUNE 30, 1998 (UNAUDITED)
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 and procedures adopted by the
Adviser 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.
SECURITY TRANSACTIONS AND INVESTMENT 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 sale of investment
securities are those of the specific securities sold adjusted for the accretion
and amortization of purchase discounts and premiums during the respective
holding periods. Interest income is recorded on the accrual basis; dividend
income is recorded on the ex-dividend date. Purchase discounts and premiums on
securities held by the Fixed Income Funds and the Balanced Fund are accreted and
amortized to maturity using the scientific interest method, which approximates
the effective interest method.
DISTRIBUTIONS TO SHAREHOLDERS--Distributions from net investment income for
the Money Market Funds and the Fixed Income Funds are declared daily and paid
monthly. The Equity Funds and the Balanced Fund declare and pay distributions
from net investment income quarterly, except for the International Growth Fund
which declares and pays distributions periodically. Any net realized capital
gains will be distributed at least annually for all Funds.
EXPENSES--Expenses that are directly related to one of the Funds are
charged directly to that Fund. Other operating expenses of the Trust are
prorated to the Funds on the basis of relative net asset value. Class specific
expenses, such as the 12b-1 fees, are borne by that class. Income, other
expenses and realized and unrealized gains and losses of a Fund are allocated to
the respective classes on the basis of the relative net assets each day.
USE OF ESTIMATES--The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that effect the reported amount of assets and
liabilities, disclosure of contingent assets and liabilities at the date of the
financial statements, and reported amounts of revenues and expenses during the
reporting period. Actual amounts could differ from these estimates.
RECLASSIFICATION ON COMPONENTS OF NET ASSETS--In accordance with Statement
of Position 93-2, "Determination, Disclosure, and Financial Statement
Presentation of Income, Capital Gain, and Return of Capital Distribution by
Investment Companies", $68,437, $106,226, $401,052, $147,169, $7,145, and $5,097
relating to differences attributable to the classification of short-term capital
gains and net investment income for tax distribution purposes of the U.S.
Treasury Securities Money Market, Equity Growth, Equity Value, Equity Income,
Mid Cap and Balanced Funds, respectively, as of June 30, 1998 have been
reclassified between the Fund's accumulated net realized gains/losses and
undistributed net income accounts, as appropriate. These reclassifications had
no effect on net asset value.
3. ORGANIZATION COSTS AND TRANSACTIONS WITH AFFILIATES
Organizational costs have been capitalized by the Funds and are being amortized
over sixty months commencing with operations. In the event any of the initial
shares of the Funds are redeemed by any holder thereof during the period that
the Funds are amortizing their organizational costs, the redemption proceeds
payable to the holder thereof 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 $47,000 for organizational work performed by
a law firm of which two officers of the Trust are partners.
Certain officers and /or Trustees of the Trust are also officers and/or
directors of SEI Fund Resources (the "Administrator"). Such officers are paid no
fees by the Trust for serving as officers of the Trust. The Trust pays each
unaffiliated Trustee an annual fee for attendance at quarterly, interim and
committee meetings.
55
<PAGE>
Notes to Financial Statements (CONTINUED)
4. ADMINISTRATION AND DISTRIBUTION AGREEMENTS
The Trust and the Administrator are parties to an administration agreement (the
"Agreement"), under which the Administrator provides the Trust with
administrative services for an annual fee that is calculated daily and paid
monthly at an annual rate of 0.20% of the average daily net assets of each Fund
with the exception of the U.S. Treasury Securities Plus Money Market Fund and
the Institutional Select Money Market Fund with annual fees that are calculated
daily and paid monthly at an annual rate of 0.35% and 0.10% of average daily net
assets, respectively.
SEI Investments Distribution Co. (the "Distributor") acts as the
distributor of the Trust's shares. The Trust has adopted a distribution plan for
Class A shares (the "Class A Plan") pursuant to Rule 12b-1 under the 1940 Act.
Under the Class A Plan, the Distributor is entitled to receive from the Trust an
annual distribution fee of 0.25% of the Fund's Class A average daily net assets.
The Trust has also adopted a distribution plan for Class B shares (the
"Class B Plan") pursuant to Rule 12b-1 under the 1940 Act. Under the Class B
Plan, the Distributor is entitled to receive from the Trust an annual
distribution fee of 0.75% of the Fund's Class B average daily net assets.
Additionally, the Class B Plan provides that Class B shares are subject to a
service fee at an annual rate of 0.25% of the Fund's Class B average daily net
assets.
The Trust has also adopted a distribution plan for Class S shares (the
"Class S Plan") pursuant to Rule 12b-1 under the 1940 Act. Under the Class S
Plan, the Distributor is entitled to receive from the Trust an annual
distribution fee of 0.60% of the Fund's Class S average daily net assets. The
Distributor has agreed to voluntarily waive a portion of its distribution fees
from Class S shares in order to limit the operating expenses of the Funds.
The Distributor receives no fees for its distribution services for Class I
shares of any fund with the exception of the U.S. Treasury Securities Plus Money
Market Fund which pays a distribution fee of 0.03% of average daily net assets.
5. INVESTMENT ADVISORY AND CUSTODIAN AGREEMENTS The Trust and Summit Bank
Investment Management Division, a division of Summit Bank, (the "Adviser") are
parties to an advisory agreement. Under the terms of the agreement, the Adviser
will receive a fee, that is calculated daily and paid monthly, at an annual rate
of 0.35% of the average daily net assets of the U.S. Treasury Securities Money
Market, Prime Obligation Money Market and Tax-Exempt Money Market Funds, 0.15%
of the average daily net assets of the U.S. Treasury Securities Plus Money
Market Fund, 0.10% of the average daily net assets of the Institutional Select
MoneyMarket Fund, 0.60% of the average daily net assets of the Fixed Income
Funds and 0.75% of the average daily net assets of the Equity Funds and the
Balanced Fund. The Trust and the Adviser are also parties to a second advisory
agreement relating only to the International Growth Fund. Under the terms of the
agreement, the Adviser receives a fee, that is calculated daily and paid
monthly, at an annual rate of 1.00% of the average daily net assets of the
International Growth Fund. The Adviser has voluntarily agreed to waive all or a
portion of its fee in order to limit the operating expenses of the Funds.
Wellington Management Company LLP serves as the investment sub-advisor to
the International Growth Fund. The sub-advisory fees are paid by the Adviser.
Summit Bank also acts as Custodian of securities for the Trust. The
Custodian plays no role in determining the investment policies of the Trust or
which securities are to be purchased or sold in the Funds. For its services, the
Custodian receives a fee, that is calculated daily and paid monthly, at an
annual rate of 0.025% of the average daily net assets of each domestic Fund and
an annual rate of 0.17% of the average daily net assets of the International
Growth Fund.
6. INVESTMENT TRANSACTIONS
The cost of security purchases and the proceeds from the sale of securities,
other than short term investments, during the period ended June 30, 1998 were as
follows:
56
<PAGE>
[LOGO OMITTED]
JUNE 30, 1998 (UNAUDITED)
NEW
SHORT-TERM FIXED JERSEY INT.-TERM PA
INV. INCOME MUNI. GOV'T. MUNI. GNMA
---------- -------- -------- ---------- -------- --------
(000) (000) (000) (000) (000) (000)
Purchases
U.S. Gov't -- 53,373 -- 8,401 -- 434
Other -- 2,945 14,802 -- 13,008 --
Sales
U.S. Gov't -- 46,237 -- 4,617 -- 7,222
Other -- 6,911 19,256 -- 15,404 --
EQUITY EQUITY EQUITY MID INTERNATIONAL
GROWTH VALUE INCOME CAP BALANCED EQUITY
-------- ------- -------- -------- ---------- --------------
(000) (000) (000) (000) (000) (000)
Purchases
U.S. Gov't -- 2,547 3,536 -- 7,835 --
Other 92,723 26,642 25,549 3,726 15,725 2,789
Sales
U.S. Gov't -- -- 4,678 -- 6,415 --
Other 117,707 67,804 50,672 39,848 7,398 5,788
At June 30, 1998, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes was not materially
different from amounts reported for financial reporting purposes. The aggregate
gross unrealized gain or loss on securities at June 30, 1998, for each Fund is
as follows:
NEW
SHORT-TERM FIXED JERSEY INT.-TERM PA
INV. INCOME MUNI. GOV'T. MUNI. GNMA
---------- -------- -------- ---------- -------- -------
(000) (000) (000) (000) (000) (000)
Aggregate gross
unrealized gain 1 4,023 4,965 448 908 --
Aggregate gross
unrealized loss -- (100) (141) (9) (104) --
---------- -------- -------- ---------- -------- -------
Net unrealized
gain 1 3,923 4,824 439 804 --
========== ======== ======== ========== ======== =======
EQUITY EQUITY EQUITY MID INTERNATIONAL
GROWTH VALUE INCOME CAP BALANCED EQUITY
---------- -------- -------- -------- -------- --------
(000) (000) (000) (000) (000) (000)
Aggregate gross
unrealized gain 52,642 65,363 27,648 5,487 9,426 3,307
Aggregate gross
unrealized loss (4,606) (5,406) (2,073) (955) (931) (568)
---------- -------- -------- --------- -------- -------
Net unrealized
gain 48,036 59,957 25,575 4,532 8,495 2,739
========== ======== ======== ========= ======== =======
7. CONCENTRATION OF CREDIT RISK
The money market funds invest primarily in a portfolio of money market
instruments maturing in one year or less whose ratings are within one of the two
highest ratings category assigned by a nationally recognized statistical rating
organization ("NRSRO") or, if not rated, are believed to be of comparable
quality. The ability of the issuers of the securities held by a Fund to meet
their obligations may be affected by economic developments in a specific
industry, state or region. The Fixed Income Funds invest in debt instruments and
the Balanced Fund invests in a combination of equity, fixed income and money
market securities.
The taxable funds may invest in bank obligations. As a result of this
policy, these investments may be subject to greater risk than a fund that does
not concentrate its investments in the banking industry. In particular, bank
obligations may be subject to the risks associated with interest rate
volatility, changes in federal and state laws and regulations governing banking
and the inability of borrowers to pay principal and interest when due. In
addition, foreign banks present the risk of investing in foreign securities and
are not subject to the same reserve requirements and other regulations as those
of U.S. banks.
The New Jersey Municipal Securities and the Pennsylvania Municipal
Securities Funds invest primarily in a diversified portfolio of municipal
securities, including municipal bonds and debentures, rated Baa or better by a
NRSRO, or, if not rated, determined by the Adviser to be of comparable quality.
Although the Funds maintain a diversified portfolio, the issuers' ability to
meet their obligations may be affected by economic developments in a specific
state or region. The following tables present a summary of holdings in each of
these portfolios:
TAX- U.S. INSTITUTIONAL
U.S. EXEMPT TREASURY SELECT
TREASURY PRIME MONEY SECURITIES MONEY
SECURITIES OBLIGATION MARKET PLUS MARKET
---------- ---------- -------- ----------- -------------
U.S. Gov't. Securities 47.6% 9.5% 3.6% 61% 13.2%
Repurchase Agreements 52.4 13.3 -- 39 22.5
Municipal Securities -- -- 89.8 -- --
Commercial Paper -- 77.2 -- -- 64.3
Other Short Term
Securities -- -- 6.6 -- --
SHORT-TERM FIXED NEW JERSEY INT.-TERM
INV. INCOME MUNI. GOVT.
------------ ---------- -------------- ----------
U.S. Gov't. Securities 94.9% 69.3% -- 99%
AAA -- 9.9 65.2% --
AA -- 11.2 18.4 --
A -- 8.1 11.4 --
BBB -- 0.5 0.3 --
NR 5.1 -- 4.1 --
All Other -- 1 0.6 1
PA
BALANCED MUNI. GNMA
------------ ---------- --------
U.S. Gov't. Securities 15.4% -- 99.2%
AAA -- 66.2% --
AA 6.6 23.6 --
A 4.5 9.4 --
BBB -- -- --
NR -- 0.8 0.8
Common Stock 69.6 -- --
All Other 2.9 -- --
57
<PAGE>
Notes to Financial Statements (CONTINUED)
8. OPTIONS TRANSACTIONS
The Equity Growth Fund transacted in call options during the period. These
transactions, which were undertaken principally to hedge against market risk,
entail certain risks. These risks include: (1) the success of a hedging strategy
may depend on an ability to predict movements in the prices of individual
securities, fluctuations in markets and movements in interest rates; (2) there
may be an imperfect correlation between the movement in prices of options and
the securities underlying them; and (3) there may not be a liquid secondary
market for options. Option activity for the Equity Growth Fund for the period
ended June 30, 1998 is as follows:
WRITTEN CALL OPTIONS
------------------------
NUMBER AMOUNT OF
OF OPTIONS PREMIUMS (000)
---------- --------------
Options outstanding at December 31, 1997 0 $ 0
Options written 1,010 (1,577)
Options closed or expired 260 134
Options outstanding at June 30, 1998 750 (1,443)
The Fund realized gains of approximately $133,570 on written call options during
the period ended June 30, 1998.
WRITTEN CALL OPTIONS
------------------------
NUMBER AMOUNT OF
OF OPTIONS PREMIUMS (000)
---------- --------------
Options outstanding at December 31, 1997 0 $ 0
Options written 350 (134)
Options closed or expired 0 0
Options outstanding at June 30, 1998 350 (134)
CALL OPTIONS
------------------------
NUMBER MARKET
OF OPTIONS VALUE (000)
---------- --------------
Options outstanding at December 31, 1997 285 $ 677
Options purchased 4,820 4,662
Options sold or expired 2,720 (2,023)
Options outstanding at June 30, 1998 2,385 2,639
The Fund realized losses of approximately $107,309 on call options during the
period ended June 30, 1998.
PUT OPTIONS
--------------------------
NUMBER MARKET
OF OPTIONS VALUE (000)
---------- --------------
Options outstanding at December 31, 1997 0 $ 0
Options purchased 750 1,277
Options sold or expired 400 874
Options outstanding at June 30, 1998 350 403
The Fund realized losses of approximately $794,016.17 on put options during the
period ended June 30, 1998.
9. COMMON TRUST FUND CONVERSIONS On February 1, 1997, certain Common Trust
Funds of Summit Bank and its affiliates were converted into the Pillar Funds.
The Funds that were involved in the conversion were as follows:
Common Trust Fund Pillar Fund
- ------------------ -----------
Pyramid Equity Income Fund Equity Income Fund
First Valley Bank Pennsylvania Pennsylvania Municipal
Tax-Exempt Fund Securities Fund
Pyramid Government Intermediate-Term
Fund Government Securities Fund
Pyramid Municipal Fund
Summit Bank CTF New Jersey Municipal
Tax-Exempt Fund Securities Fund
First Valley Bank Corporate/
Government Income Fund
Summit Bank CTF
Taxable Bond Fund
Pyramid Income Fund
Summit Bank Employee Benefit
Bond Fund Fixed Income Fund
First Valley Bank Equity Fund
Pyramid Growth Fund Equity Value Fund
Summit Bank Employee Benefit
Common Stock Fund
Self Employed Retirement Fund
Summit Bank CTF Capital
Growth Fund Equity Growth Fund
The number of shares issued for each fund and the net assets (including net
unrealized gain/loss) of each fund immediately before the conversion were as
follows:
Unrealized
Common Trust Fund Net Assets Gain/(Loss)
- ------------------ ---------- ----------
Pyramid Equity Income Fund $34,921,068 $15,070,845
First Valley Bank Pennsylvania
Tax-Exempt Fund 37,351,305 479,926
Pyramid Government Fund 13,328,272 82,578
Pyramid Municipal Fund 27,106,556 1,470,536
Summit Bank CTF
Tax-Exempt Fund 81,341,717 994,062
First Valley Bank Corporate/
Government Income Fund 25,359,209 (39,338)
Summit Bank CTF
Taxable Bond Fund 68,089,184 96,610
Pyramid Income Fund 33,854,976 168,397
Summit Bank Employee
Benefit Bond Fund 46,538,572 (18,801)
First Valley Bank Equity Fund 29,213,010 6,986,551
Pyramid Growth Fund 55,314,477 20,924,589
Summit Bank Employee
Benefit Common Stock Fund 65,394,986 1,223,470
Self Employed Retirement Fund 3,352,225 39,136
Summit Bank CTF
Capital Growth Fund 152,286,126 32,316,660
58
<PAGE>
[LOGO OMITTED]
JUNE 30, 1998 (UNAUDITED)
Net Assets
Pillar Funds Prior to Conversion Shares Issued
- ------------------ ------------------- -------------
Equity Income Fund $ 72,031,803 2,525,125
Pennsylvania Municipal
Securities Fund 4,058,459 3,676,310
Intermediate-Term Government
Securities Fund 27,272,305 1,311,380
New Jersey Municipal
Securities Fund 40,228,805 10,125,023
Fixed Income Fund 103,362,682 17,056,956
Equity Value Fund 132,299,525 6,015,148
Equity Growth Fund -- 22,103,334
10. SHAREHOLDERS VOTING RESULTS
A special meeting of shareholders was called for June 22, 1998, at which the
shareholders of Pillar International Growth Fund voted on the following
proposals set forth below:
Approve the selection of Vontobel as investment
sub-advisor to the Fund, and approve an investment sub-advisory agreement
between the Advisor and Vontobel.
For ........................ 1,187,798
Against ........................ 3,124
Abstain .......................... 842
Restate the Fund's investment objective from "long term capital growth" to
"capital appreciation".
For ........................ 1,165,081
Against ........................ 2,097
Abstain .......................... 842
Broker Non-Vote ............... 23,746
Revise a fundamental limitation of the Fund to increase from 5% to 10%, the
Fund's ability to acquire the voting securities of any one issuer and to apply
the 10% limit on the ownership of voting securities of an issuer to 75% of the
total assets of the Fund, rather than 100% of its total assets.
For ........................ 1,165,559
Against ........................ 1,619
Abstain .......................... 842
Broker Non-Vote ............... 23,746
Reclassify as "non-fundamental" a fundamental limitation of the Fund
regarding investing in companies for the purpose of exercising control.
For ........................ 1,163,608
Against ........................ 3,570
Abstain .......................... 842
Broker Non-Vote ............... 23,746
Reclassify as "non-fundamental" a fundamental
limitation of the Fund that restricts the Fund's ability to purchase securities
of issuers whose securities are owned by the officers, trustees, partners and
directors of the Trust or any investment advisor of the Trust.
For ........................ 1,163,133
Against ........................ 4,044
Abstain ......................... 842
Broker Non-Vote ............... 23,747
59
<PAGE>
Notes
<PAGE>
The Pillar Funds
Semi-Annual Report
------------------
June 30, 1998
INVESTMENT ADVISER
Summit Bank
ADMINISTRATOR
SEI Investments Mutual Fund Services
Oaks, PA 19456
DISTRIBUTOR
SEI Investments Distribution Co.
Oaks, PA 19456
--------------------------------
SUMMIT BANK SERVES AS INVESTMENT ADVISOR AND CUSTODIAN TO THE PILLAR FUNDS.
THE PILLAR FUNDS ARE DISTRIBUTED BY SEI INVESTMENTS DISTRIBUTION CO., OAKS,
PA 19456. SEI INVESTMENTS DISTRIBUTION CO. IS NOT AFFILIATED WITH SUMMIT BANK.
THE PILLAR FUNDS AND PILLAR ARE REGISTERED SERVICE MARKS OF SUMMIT BANK. YOUR
INVESTMENT FOUNDATION AND THE STYLIZED "P" LOGO ARE SERVICE MARKS OF SUMMIT
BANK. SUMMIT BANCORP AND SUMMIT ARE REGISTERED SERVICE MARKS OF SUMMIT
BANCORP. SUMMIT BANK IS A SERVICE MARK OF SUMMIT BANCORP.
THIS INFORMATION MUST BE PRECEDED OR ACCOMPANIED BY A
CURRENT PROSPECTUS. FOR MORE INFORMATION CALL, 1-800-932-7782.
READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PIL-F-008-07
