PRESIDENT'S MESSAGE
- -------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report for CCB Equity Fund. This re-
port covers the first half of the fund's fiscal year, which is the six-month
period from June 1, 1999 through November 30, 1999.
Inside, you will find complete information that includes an investment review by
the fund's portfolio manager, a complete list of the fund's stock holdings, and
the financial statements.
To help your money grow in value over the long term, this fund invests in a
diversified portfolio of high-quality stocks. As you can see from the list of
holdings, many of these stocks are issued by industry leaders whose products and
services you use every day. Portfolio holdings at the end of the reporting
period included such well-respected names as American Express, Exxon, General
Electric, Intel, Microsoft, Pfizer, Procter & Gamble, and Wal-Mart.
Over the six-month reporting period, CCB Equity Fund delivered a total return of
7.74%. Contributing to the total return were income dividends totaling $0.04 per
share, and a $1.64 increase in net asset value. The fund's net as- sets totaled
$103.7 million at the end of the reporting period./1/
Thank you for participating in the long-term growth opportunities of stocks
through the diversification, professional management and convenience of CCB
Equity Fund. We'll continue to keep you up-to-date on your investment pro-
gress.
Sincerely,
Edward C. Gonzales
President
January 15, 2000
1 Performance quoted represents past performance. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
INVESTMENT REVIEW
- -------------------------------------------------------------------------------
The investment objective of the CCB Equity Fund is to provide high total re-
turn over longer periods of time through appreciation of capital and current
income provided by dividends and interest payments. The fund attempts to achieve
it's investment objective by investing primarily in a broad, diversi- fied range
of dividend paying common stocks in companies deemed to have above average
earnings growth prospects that are available at reasonable prices.
CCB Equity Fund gained 7.74% for the six-month reporting period ended November
30, 1999./1/ The market exhibited unsettling volatility during the reporting
period and narrow breadth. The sharp price swings in the last few months high-
light a market driven more by emotion and momentum than by valuation. Invest-
ors were enamored with technology and internet oriented stocks.
The fund is conservatively positioned in a diversified roster of companies that
offer the potential for long-term appreciation coupled with modest divi- dend
yields. The extraordinary growth of the internet provided the back drop for the
significant gains in the fund's technology investments. Cisco Systems, the
fund's largest position, is the leading provider of networking equipment and
architecture. Cisco is benefiting from accelerating capital expenditures to
expand the Web and telecommunication networks globally. EMC Corporation, a
leading provider of hardware and software storage systems, is benefiting from
the rapid growth in storage needs resulting from increasing internet usage.
Investments in financial service companies are the fund's next largest hold-
ings. The continued strength in the U.S. economy created uncertainty about the
outlook for future inflation, which in turn led to higher interest rates. In
this environment, the financial sector performed poorly. Two of the fund's fi-
nancial holdings, however, Citigroup and American Express, enjoyed strong ad-
vances and are examples of companies that are well positioned for the new global
economy.
As of November 30, 1999, the fund's total net assets were $103,749,274. The
portfolio was 97.2% invested in stocks and the remaining 2.9% in cash equiva-
lents. The fund's ten largest holdings were as follows:
Cisco Systems, Inc................................................... 6.88%
General Electric Co.................................................. 5.51%
Citigroup, Inc....................................................... 5.06%
MCI Worldcom, Inc.................................................... 4.39%
EMC Corp. Mass....................................................... 4.35%
Applied Materials, Inc............................................... 3.29%
Fannie Mae........................................................... 3.21%
Capital One Financial Corp........................................... 3.14%
Tyco International Ltd............................................... 2.70%
Duke Energy Corp..................................................... 2.69%
Looking forward, we expect the potential for higher interest rates, coupled with
the threat of escalating inflation, to keep the markets volatile. Con- verging
economic growth worldwide bodes well for corporate profitability, and likewise,
stock prices. When valuation, not momentum, again becomes a consid- eration in
stock selection, fundamentally sound companies whose stocks have recently
performed poorly can be expected to deliver solid gains.
Thank you for your interest and investment in the CCB Equity Fund.
1 Performance quoted represents past performance and is no guarantee of future
results. Investment return and principal value will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than its original
cost.
LAST MEETING OF SHAREHOLDERS
A Special Meeting of Trust shareholders was held on December 17, 1999. As of
October 27, 1999, the record date for shareholder voting at the meeting, there
were 4,307,463 total outstanding shares. The following items were considered by
shareholders and the results of their voting were as follows:
AGENDA ITEM 1. To elect Trustees/1/
For Withheld Authority To Vote
--------- --------------------------
Thomas G. Bigley 4,307,463 0
Nicholas P. Constantakis 4,307,463 0
John F. Cunningham 4,307,463 0
J. Christopher Donahue 4,307,463 0
Charles F. Mansfield, Jr. 4,307,463 0
John E. Murray, Jr. 4,307,463 0
John S. Walsh 4,307,463 0
1 The following Trustees continued their terms as Trustees of the Trust: John
F. Donahue, John T. Conroy, Jr., Lawrence D. Ellis, M.D., Peter E. Madden and
Marjorie P. Smuts.
CCB EQUITY FUND
PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
--------- --------------------------------------- ------------
<C> <S> <C>
COMMON STOCKS--97.2%
-------------------------------------------------
AEROSPACE & DEFENSE--2.0%
---------------------------------------
35,000 Honeywell International, Inc. $ 2,093,438
--------------------------------------- ------------
CHEMICALS--1.4%
---------------------------------------
36,000 Imperial Chemical Industries, PLC, ADR 1,471,500
--------------------------------------- ------------
CONSUMER BASICS--7.2%
---------------------------------------
30,000 Emerson Electric Co. 1,710,000
---------------------------------------
44,000 General Electric Co. 5,720,000
--------------------------------------- ------------
Total 7,430,000
--------------------------------------- ------------
CONSUMER NON-DURABLES--5.5%
---------------------------------------
60,000 General Mills, Inc. 2,261,250
---------------------------------------
20,000 Kimberly-Clark Corp. 1,277,500
---------------------------------------
15,000 Philip Morris Cos., Inc. 394,687
---------------------------------------
16,000 Procter & Gamble Co. 1,728,000
--------------------------------------- ------------
Total 5,661,437
--------------------------------------- ------------
ELECTRONIC TECHNOLOGY--22.1%
---------------------------------------
35,000 Applied Materials, Inc. 3,410,312
---------------------------------------
80,000 (1)Cisco Systems, Inc. 7,135,000
---------------------------------------
54,000 (1)EMC Corp. Mass 4,512,375
---------------------------------------
33,400 Intel Corp. 2,561,362
---------------------------------------
11,000 International Business Machines Corp. 1,133,687
---------------------------------------
20,000 Lucent Technologies, Inc. 1,461,250
---------------------------------------
28,000 Texas Instruments, Inc. 2,689,750
--------------------------------------- ------------
Total 22,903,736
--------------------------------------- ------------
ENERGY MINERALS--0.5%
---------------------------------------
5,000 Atlantic Richfield Co. 481,875
--------------------------------------- ------------
FINANCE--15.4%
---------------------------------------
10,000 American Express Co. 1,513,125
---------------------------------------
25,000 American International Group, Inc. 2,581,250
---------------------------------------
45,000 Associates First Capital Corp., Class A 1,496,250
---------------------------------------
70,000 Capital One Financial Corp. 3,259,375
-----------------------------------------
97,500 Citigroup, Inc. 5,252,812
-----------------------------------------
41,500 Pennsylvania Real Estate Investment Trust 708,094
-----------------------------------------
24,000 Peoples Bank Bridgeport 508,500
-----------------------------------------
24,000 Washington Mutual, Inc. 696,000
----------------------------------------- ------------
Total 16,015,406
----------------------------------------- ------------
HEALTH TECHNOLOGY--10.6%
-----------------------------------------
50,400 Abbott Laboratories 1,915,200
-----------------------------------------
40,000 American Home Products Corp. 2,080,000
-----------------------------------------
60,000 Medtronic, Inc. 2,332,500
-----------------------------------------
31,800 Merck & Co., Inc. 2,496,300
-----------------------------------------
60,000 Pfizer, Inc. 2,171,250
----------------------------------------- ------------
Total 10,995,250
----------------------------------------- ------------
INDUSTRIAL SERVICES--0.9%
-----------------------------------------
15,000 Schlumberger Ltd. 900,938
----------------------------------------- ------------
INSURANCE--1.1%
-----------------------------------------
17,500 Jefferson-Pilot Corp. 1,187,812
----------------------------------------- ------------
MORTGAGE--4.2%
-----------------------------------------
50,000 Fannie Mae 3,331,250
-----------------------------------------
21,000 Federal Home Loan Mortgage Corp. 1,036,875
----------------------------------------- ------------
Total 4,368,125
----------------------------------------- ------------
NON-ENERGY MINERALS--1.7%
-----------------------------------------
27,000 Alcoa, Inc. 1,768,500
----------------------------------------- ------------
OIL--5.8%
-----------------------------------------
30,000 BP Amoco PLC, ADR 1,828,125
-----------------------------------------
5,000 Chevron Corp. 442,813
-----------------------------------------
15,700 Exxon Corp. 1,245,206
-----------------------------------------
21,000 Halliburton Co. 812,437
-----------------------------------------
16,700 Mobil Corp. 1,742,019
----------------------------------------- ------------
Total 6,070,600
----------------------------------------- ------------
PROCESS INDUSTRIES--1.1%
--------------------------------------------------
50,000 Goodrich (B.F.) Co. $ 1,128,125
-------------------------------------------------- ------------
PRODUCER MANUFACTURING--2.7%
--------------------------------------------------
70,000 Tyco International Ltd. 2,804,375
-------------------------------------------------- ------------
RETAIL--5.7%
--------------------------------------------------
55,000 Abercrombie & Fitch Co., Class A 1,780,625
--------------------------------------------------
21,500 Dayton-Hudson Corp. 1,517,094
--------------------------------------------------
25,000 Lowe's Cos., Inc. 1,245,313
--------------------------------------------------
23,400 Wal-Mart Stores, Inc. 1,348,425
-------------------------------------------------- ------------
Total 5,891,457
-------------------------------------------------- ------------
TECHNOLOGY SERVICES--2.2%
--------------------------------------------------
25,000 (1)Microsoft Corp. 2,276,172
-------------------------------------------------- ------------
UTILITIES--7.1%
--------------------------------------------------
55,000 Duke Energy Corp. 2,787,813
--------------------------------------------------
55,053 (1)MCI Worldcom, Inc. 4,552,195
-------------------------------------------------- ------------
Total 7,340,008
-------------------------------------------------- ------------
TOTAL COMMON STOCKS (IDENTIFIED COST $53,394,424) 100,788,754
-------------------------------------------------- ------------
MUTUAL FUND--2.9%
------------------------------------------------------------
3,031,774 Goldman Sachs Financial Square Money Market Fund
(AT NET ASSET VALUE) 3,031,774
-------------------------------------------------- ------------
TOTAL INVESTMENTS (IDENTIFIED COST $56,426,198)(2) $103,820,528
-------------------------------------------------- ------------
</TABLE>
(1) Non-income producing security.
(2) The cost of investments for federal tax purposes amounts to $56,426,198.
The net unrealized appreciation of investments on a federal tax basis
amounts to $47,394,330 which is comprised of $49,399,483 appreciation and
$2,005,153 depreciation at November 30, 1999.
Note: The categories of investments are shown as a percentage of net assets
($103,749,274) at November 30, 1999.
The following acronym is used throughout this portfolio:
ADR--American Depositary Receipt
(See Notes which are an integral part of the Financial Statements)
CCB EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSETS:
- ---------------------------------------------------------------
Total investments in securities, at value (identified and tax
cost $ 56,426,198) $103,820,528
- ---------------------------------------------------------------
Income receivable 146,055
- ---------------------------------------------------------------
Deferred organizational costs 2,198
- ---------------------------------------------------------------
Prepaid expenses 911
- --------------------------------------------------------------- ------------
Total assets 103,969,692
- ---------------------------------------------------------------
LIABILITIES:
- -----------------------------------------------------
Payable for shares redeemed $ 37,005
- -----------------------------------------------------
Payable for adviser fee 112,669
- -----------------------------------------------------
Payable for administrative personnel and services fee 13,851
- -----------------------------------------------------
Payable for shareholder services fee 12,841
- -----------------------------------------------------
Accrued expenses 44,052
- ----------------------------------------------------- --------
Total liabilities 220,418
- --------------------------------------------------------------- ------------
Net Assets for 4,438,401 shares outstanding $103,749,274
- --------------------------------------------------------------- ------------
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------
Paid-in capital $ 40,465,623
- ---------------------------------------------------------------
Net unrealized appreciation of investments 47,394,330
- ---------------------------------------------------------------
Accumulated net realized gain on investments and options 15,872,338
- ---------------------------------------------------------------
Undistributed net investment income 16,983
- --------------------------------------------------------------- ------------
Total Net Assets $103,749,274
- --------------------------------------------------------------- ------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER
SHARE:
- ---------------------------------------------------------------
$103,749,274/4,438,401 shares outstanding $23.38
- --------------------------------------------------------------- ------------
(See Notes which are an integral part of the Financial Statements)
CCB EQUITY FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED NOVEMBER 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
- --------------------------------------------------------
Dividends (net of foreign taxes withheld of $2,711) $ 614,964
- --------------------------------------------------------
Interest 58,159
- -------------------------------------------------------- ----------
Total income 673,123
- --------------------------------------------------------
EXPENSES:
- ---------------------------------------------
Investment adviser fee $ 430,228
- ---------------------------------------------
Administrative personnel and services fee 76,870
- ---------------------------------------------
Custodian fees 8,286
- ---------------------------------------------
Transfer and dividend disbursing agent fees
and expenses 25,782
- ---------------------------------------------
Directors'/Trustees' fees 2,724
- ---------------------------------------------
Auditing fees 6,356
- ---------------------------------------------
Legal fees 2,767
- ---------------------------------------------
Portfolio accounting fees 22,272
- ---------------------------------------------
Shareholder services fee 42,277
- ---------------------------------------------
Share registration costs 7,679
- ---------------------------------------------
Printing and postage 4,699
- ---------------------------------------------
Insurance premiums 1,059
- ---------------------------------------------
Miscellaneous 4,668
- --------------------------------------------- ---------
Total expenses 635,667
- ---------------------------------------------
Waivers--
- ------------------------------------
Waiver of investment adviser fee $(91,107)
- ------------------------------------
Waiver of shareholder services fee (16,911)
- ------------------------------------ --------
Total waivers (108,018)
- --------------------------------------------- ---------
Net expenses 527,649
- -------------------------------------------------------- ----------
Net investment income 145,474
- -------------------------------------------------------- ----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
AND OPTIONS:
- --------------------------------------------------------
Net realized gain on investments 1,038,924
- --------------------------------------------------------
Net change in unrealized appreciation of investments
and options 6,319,247
- -------------------------------------------------------- ----------
Net realized and unrealized gain on investments and
options 7,358,171
- -------------------------------------------------------- ----------
Change in net assets resulting from operations $7,503,645
- -------------------------------------------------------- ----------
(See Notes which are an integral part of the Financial Statements)
CCB EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
(UNAUDITED) YEAR ENDED
NOVEMBER 30, 1999 MAY 31, 1999
- --------------------------------------------- ----------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ---------------------------------------------
OPERATIONS--
- ---------------------------------------------
Net investment income $ 145,474 $ 659,246
- ---------------------------------------------
Net realized gain on investments and options
($1,038,924 and $15,378,089, respectively, as
computed for federal tax purposes) 1,038,924 15,309,462
- ---------------------------------------------
Net change in unrealized appreciation
of investments and options 6,319,247 (7,645,911)
- --------------------------------------------- ------------ -------------
Change in net assets resulting from
operations 7,503,645 8,322,797
- --------------------------------------------- ------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS--
- ---------------------------------------------
Distributions from net investment income (179,842) (836,115)
- ---------------------------------------------
Distributions from net realized gains
on investments and options -- (17,056,128)
- --------------------------------------------- ------------ -------------
Change in net assets resulting from
distributions to shareholders (179,842) (17,892,243)
- --------------------------------------------- ------------ -------------
SHARE TRANSACTIONS--
- ---------------------------------------------
Proceeds from sale of shares 2,496,423 36,663,336
- ---------------------------------------------
Net asset value of shares issued to
shareholders
in payment of distributions declared 29,354 1,187,375
- ---------------------------------------------
Cost of shares redeemed (5,625,848) (148,449,379)
- --------------------------------------------- ------------ -------------
Change in net assets resulting from share
transactions (3,100,071) (110,598,668)
- --------------------------------------------- ------------ -------------
Change in net assets 4,223,732 (120,168,114)
- ---------------------------------------------
NET ASSETS:
- ---------------------------------------------
Beginning of period 99,525,542 219,693,656
- --------------------------------------------- ------------ -------------
End of period (including undistributed net
investment
income of $16,983 and $51,351, respectively) $103,749,274 $ 99,525,542
- --------------------------------------------- ------------ -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
CCB EQUITY FUND
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED MAY 31,
NOVEMBER 30, ---------------------------------------------
1999 1999 1998 1997 1996 1995(1)
- ------------------------- ------------ ------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 21.74 $ 20.24 $ 17.33 $ 13.80 $ 11.48 $ 10.00
- -------------------------
INCOME FROM INVESTMENT
OPERATIONS
- -------------------------
Net investment income 0.03 0.08 0.07 0.13 0.14 0.11
- -------------------------
Net realized and
unrealized gain on
investments and options 1.65 3.10 3.93 3.72 2.57 1.44
- ------------------------- -------- ------- -------- -------- ------- -------
Total from investment
operations 1.68 3.18 4.00 3.85 2.71 1.55
- ------------------------- -------- ------- -------- -------- ------- -------
LESS DISTRIBUTIONS
- -------------------------
Distributions from net
investment income (0.04) (0.08) (0.07) (0.13) (0.16)
(0.07)
- -------------------------
Distributions from net
realized
gain on investments and
options -- (1.60) (1.02) (0.19) (0.23) --
- ------------------------- -------- ------- -------- -------- ------- -------
Total distributions (0.04) (1.68) (1.09) (0.32) (0.39)
(0.07)
- ------------------------- -------- ------- -------- -------- ------- -------
NET ASSET VALUE, END OF
PERIOD $23.38 $21.74 $ 20.24 $ 17.33 $ 13.80 $ 11.48
- ------------------------- -------- ------- -------- -------- ------- -------
TOTAL RETURN(2) 7.74% 15.90% 23.86% 28.25% 23.91%
15.55%
- -------------------------
RATIOS TO AVERAGE NET
ASSETS
- -------------------------
Expenses 1.04%(4) 1.00% 1.00% 1.03% 1.25%
1.25%(4)
- -------------------------
Net investment income 0.29%(4) 0.39% 0.39% 0.81% 1.08%
3.00%(4)
- -------------------------
Expense
waiver/reimbursement(3) 0.21%(4) 0.09% 0.07% 0.16% 0.20%
1.42%(4)
- -------------------------
SUPPLEMENTAL DATA
- -------------------------
Net assets, end of
period (000 omitted) $103,749 $99,526 $219,694 $167,503 $29,194 $24,581
- -------------------------
Portfolio turnover 13% 92% 69% 55% 69%
4%
- -------------------------
</TABLE>
(1) Reflects operations for the period from December 5, 1994 (date of initial
public investment) to May 31, 1995.
(2) Based on net asset value, which does not reflect the sales charge or con-
tingent deferred sales charge, if applicable.
(3) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(4) Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
CCB EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1999 (UNAUDITED)
- -------------------------------------------------------------------------------
(1) ORGANIZATION
CCB Funds (the "Trust") is registered under the Investment Company Act of 1940,
as amended (the "Act") as an open-end, management investment company. The Trust
consists of one portfolio, namely, the CCB Equity Fund (the "Fund"), a
diversified portfolio. The investment objective of the Fund is to provide high
total return over longer periods of time through appreciation of capital and
current income provided by dividends and interest payments.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS--Listed equity securities are valued at the last sale
price reported on the primary national securities exchange. Unlisted equity
securities are generally valued at the mean of the latest bid and asked prices
provided by an independent pricing service. Short-term securities are valued
at the prices provided by an independent pricing service. However, short-term
securities with remaining maturities of 60 days or less at the time of
purchase may be valued at amortized cost, which approximates fair market
value. Investments in other open-end regulated investment companies are valued
at net asset value.
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses
are accrued daily. Bond premium and discount, if applicable, are amortized as
required by the Internal Revenue Code, as amended (the "Code"). Dividend
income and distributions to shareholders are recorded on the ex-dividend date.
Non-cash dividends included in dividend income, if any, are recorded at fair
value.
FEDERAL TAXES--It is the Fund's policy to comply with the provisions of the
Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of its income. Accordingly, no
provision for federal tax is necessary.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Fund may engage in
when-issued or delayed delivery transactions. The Fund records when-issued
securities on the trade date and maintains security positions such that
sufficient liquid assets will be available to make payment for the securities
purchased. Securities purchased on a when-issued or delayed delivery basis are
marked to market daily and begin earning interest on the settlement date.
Losses may occur on theses transactions due to changes in market conditions or
the failure of counterparties to perform under the contract.
CCB EQUITY FUND
- -------------------------------------------------------------------------------
OPTION CONTRACTS--The Fund may write option contracts. A written option
obligates the Fund to deliver (a call), or to receive (a put), the contract
amount upon exercise by the holder of the option. The value of the option
contract is recorded as a liability and unrealized gain or loss is measured by
the difference between the current value and the premium received. For the
period ended November 30, 1999, the Fund had a realized again of $83,499 on
written options.
The following is a summary of the Fund's written option activity:
<TABLE>
<CAPTION>
CONTRACTS NUMBER OF CONTRACTS AGGREGATE FACE VALUE
--------- ------------------- --------------------
<S> <C> <C>
Outstanding at prior period-end 400 $ 28,799
Contracts written 300 54,700
Contracts expired (700) (83,499)
Contracts closed -- --
---- --------
Outstanding at November 30, 1999 -- $ --
---- --------
</TABLE>
At November 30, 1999, the Fund had no outstanding options.
USE OF ESTIMATES--The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the amounts of assets, liabilities, expenses and
revenues reported in the financial statements. Actual results could differ
from those estimated.
OTHER--Investment transactions are accounted for on a trade date basis.
(3) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value).
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
NOVEMBER 30, MAY 31,
1999 1999
- ---------------------------------------------- ------------ ----------
<S> <C> <C>
Shares sold 110,857 3,263,940
- ----------------------------------------------
Shares issued to shareholders in payment of
distributions declared 1,334 57,062
- ----------------------------------------------
Shares redeemed (250,985) (9,598,643)
- ---------------------------------------------- -------- ----------
Net change resulting from share transactions (138,794) (6,277,641)
- ---------------------------------------------- -------- ----------
</TABLE>
CCB EQUITY FUND
- -------------------------------------------------------------------------------
(4) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISER FEE--Central Carolina Bank and Trust Company, the Fund's
investment adviser (the "Adviser"), receives for its services an annual
investment adviser fee equal to 0.85% of the Fund's average daily net assets.
The Adviser may voluntarily choose to waive any portion of its fee. The Adviser
can modify or terminate this voluntary waiver at any time at its sole
discretion.
Under the terms of a sub-adviser agreement between the Adviser and Franklin
Street Advisors, Inc., (the "Sub-Adviser"), the Sub-Adviser receives an annual
fee from the Adviser equal to 0.65% of the Fund's average daily net assets. The
Sub-Adviser may voluntarily waive any portion of its fee.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the Fund
with certain administrative personnel and services. The fee paid to FAS is based
on a scale that ranges from 0.15% to 0.075% of average aggregate net assets of
the Trust for the period.
SHAREHOLDER SERVICES FEE--Under the terms of a Shareholder Services Agreement
with FAS, the Fund will pay FAS up to 0.25% of average daily net assets of the
Fund for the period. The fee paid to FAS is used to finance certain services for
shareholders and to maintain shareholder accounts. FAS may voluntarily choose to
waive any portion of its fee. FAS can modify or terminate this voluntary waiver
at any time at its sole discretion.
TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES--Federated Services
Company ("FServ"), through its subsidiary, Federated Shareholders Services
Company ("FSSC") serves as transfer and dividend disbursing agent for the Fund.
The fee paid to FSSC is based on the size, type, and number of accounts and
transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES--Fserv maintains the Fund's accounting records for
which it receives a fee. The fee is based on the level of the Fund's average
daily net assets for the period, plus out-of-pocket expenses.
ORGANIZATIONAL EXPENSES--Organizational expenses of $35,000 were borne initially
by the Adviser. The Fund has reimbursed the Adviser for these expenses. These
expenses have been deferred and are being amortized over the five year period
following the Fund's effective date. For the period ended November 30, 1999, the
Fund expensed $2,199 of organizational expenses.
GENERAL--Certain of the Officers and Trustees of the Trust are Officers and
Directors or Trustees of the above companies.
13
CCB EQUITY FUND
- --------------------------------------------------------------------------------
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities (and in-
kind contributions), for the period ended November 30, 1999, were as follows:
<TABLE>
<S> <C>
- ---------
PURCHASES $12,784,262
- --------- -----------
SALES $18,048,191
- --------- -----------
</TABLE>
TRUSTEES OFFICERS
- --------------------------------------------------------------------------------
John F. Donahue John F. Donahue
Chairman
Thomas G. Bigley
Edward C. Gonzales
John T. Conroy, Jr. President and Treasurer
John F. Cunningham J. Christopher Donahue
Executive Vice President
Lawrence D. Ellis, M.D.
John W. McGonigle
Peter E. Madden Executive Vice President and Secretary
Charles F. Mansfield, Jr. Richard B. Fisher
Vice President
John E. Murray, Jr.
Joseph S. Machi
Marjorie P. Smuts Vice President and Assistant Treasurer
John S. Walsh C. Grant Anderson
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses and other information.
Federated Securities Corp. is the distributor of the fund.
Cusip 12500E307
G00926-01 (1/00)
CCBFUNDS
Central Carolina Bank
CCB
Equity Fund
Semi-Annual Report
November 30, 1999
