[Pillar Logo Omitted]
The Pillar Funds
Your Investment Foundation
[Pillar Background art Omitted]
SEMI-ANNUAL
REPORT
To Shareholders
June 30, 1997
<PAGE>
TABLE OF CONTENTS
Letter to Shareholders.........................1
Statement of NetAssets ........................4
Statement of Operations ......................43
Statements of Changes in Net Assets ..........46
Financial Highlights .........................52
Notes to Financial Statements ................57
NOT
FDIC May Lose Value
INSURED No Bank Guarantee
<PAGE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997
Letter to Shareholders
After a roller-coaster performance in the first quarter, stocks had one of
their best performances ever in the second three months of this year. Worries
over too strong a pace of economic growth, which had infected investors by March
and tipped the scales for the Federal Reserve toward increasing short-term
interest rates, dissipated as it became apparent that most indicators of
business activity were moderating sharply in the second quarter. Helping to
propel stocks during this period was still robust, and higher than expected,
growth in the corporate earnings and very healthy money flows into equity mutual
funds. Bond yields responded as well by falling during the second quarter but
have not entirely retraced the first quarter's rise.
In contrast to the heady growth of Gross Domestic Product (GDP) in the
first quarter which included strong gains in consumer spending and relatively
high rates of inventory accumulation, production in the second quarter is
expected to be much more muted. Healthy gains in employment coupled with gently
rising wages continue to generate very satisfactory growth in personal income.
This spending power did not entirely flow through to purchases in the second
quarter suggesting that there is some pent-up ability to consume. So we may see
some pick up in spending in the second half of the year.
It is this potential for faster growth and the implications for inflation
which concerns the Federal Reserve. From their vantage point, any use of
resources (labor, productive capacity) beyond the "long run" rate of increase of
these resources is likely to be inflationary, particularly when utilization
rates for these resources is very high as it is today. However, this is a
slippery path to try to negotiate. Slippery because it suggests that we are sure
of what labor resources are going to be available when there are two major
sources of error present. First, low levels of unemployment and rising wages are
prompting more people to look for work, stimulating growth in our labor force.
And second, our economy has the ability to substitute overseas labor for
domestic labor by raising the level of imports.
(CONTINUED NEXT PAGE)
1
<PAGE>
The path is also slippery because our ability to measure productivity is
also subject to substantial error. Indeed, one explanation for the current low
level of inflation may be that our productivity statistics are understated. If
that is the case, and there are many observers who would support that
contention, it also explains several other trends in force. Corporate capital
spending continues to be quite robust and is disproportionately directed at
computer and communication equipment and software, one sign of the productivity
gains to be had. Additionally, growth in corporate profits, quarter by quarter,
is still outpacing expectations. This continued margin expansion, which many
corporations are signaling they can continue to generate for a number of
quarters into the future, is another sign of healthy productivity gains.
So there is considerable evidence for believing that we can support a
higher long-run real growth rate than the monetary authorities are willing to
concede. And evidence in the market place that current monetary conditions may
even be too tight. Witness the continuing decline in the price of gold and the
recent record string of negative changes in the Producer Price Index.
These conditions suggest that we can remain optimistic about the trend of
interest rates. As mentioned earlier, it would not be surprising to see some
modest re-acceleration of GDP growth in the second half. That change may prompt
renewed fears about inflation. But our belief is they will prove to be unfounded
and that the general direction of rates will be down. Real rates are still at
the upper band of historical experience and borrowing demands from all sectors,
government, corporate and consumer, do not show any signs of acceleration.
Another positive influence on stock prices has been the higher probability
of a reduction in the capital gains tax in this session of Congress. Much of the
debate around the idea is that this is of benefit only to the rich. Much more
important are the incentives to savings which stimulate entrepreneurial activity
and capital investment, creating additional jobs and income for the entire
economy. There is substantial evidence that these effects are quite powerful and
yet the forecasts of the benefits to be gained greatly downplay their impact.
2
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[PILLAR LOGO OMITTED]
JUNE 30, 1997
Despite all these positive signs, this is by no means a time for
complacency. Valuation levels for the stock market are in virtually uncharted
territory, as the environment for the U.S. equity investor has rarely been more
favorable. But we should not lose sight of two elements. First, competition in
the marketplace remains ferocious. Any misstep by a corporate management can be
devastating. The need to carefully deploy resources only where advantage can be
gained is vital. In many cases, size has become a competitive advantage so it
should be no surprise that the recent relative investment performance of large
capitalization companies has been superior. Second, the greatest rewards will
rebound to those companies who can sustain superior revenue growth. Whether it's
because of the markets they serve or some exploitable advantage, growth in
revenues is truly going to separate the men from the boys. For the overwhelming
evidence at this point is that unit growth, which is what is needed when prices
can't be raised, is a scarce commodity.
Our investment strategy remains directed toward sectors and companies that
can support superior revenue growth. This fixation continues to guide us toward
technology, health care, financial services and global consumer products as the
major building blocks of our portfolios -- technology because of its pivotal
role in corporate productivity worldwide, health care and financial services
because of domestic and international demographic trends in place and global
consumer products because of the opportunities created by emerging markets.
These themes should serve our shareholders well in the months and years ahead.
Sincerely,
[Sig Omiited] [Sig Omiited]
David G. Lee Hilton M. Jervey, CFA
President and CEO Senior Vice President
The Pillar Funds Chief Investment Officer
Summit Bank
3
<PAGE>
Statement of Net Assets
U.S. TREASURY SECURITIES MONEY MARKET FUND
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS--97.0%
U.S. Treasury Bills (A)
4.440%, 07/10/97 $20,000 $ 19,978
4.660%, 07/17/97 90,000 89,815
4.900%, 07/24/97 58,000 57,820
4.770%, 07/31/97 5,000 4,980
4.800%, 08/07/97 85,000 84,585
4.840%, 08/14/97 50,000 49,703
4.970%, 08/21/97 60,000 59,582
4.820%, 08/28/97 60,000 59,531
4.870%, 09/04/97 20,000 19,824
4.950%, 09/18/97 55,000 54,396
U.S. Treasury Note
5.625%, 08/31/97 30,000 30,004
--------
Total U.S. Treasury Obligations
(Cost $530,218) 530,218
--------
CASH EQUIVALENT--3.3%
SEI Liquid Asset Trust --
Treasury Portfolio 17,931 17,931
--------
Total Cash Equivalent
(Cost $17,931) 17,931
--------
Total Investments--100.3%
(Cost $548,149) 548,149
--------
OTHER ASSETS AND LIABILITIES--(0.3%)
Other Assets and Liabilities, Net (1,474)
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization--no par value) based
on 543,114,116 outstanding shares
of beneficial interest 543,114
Portfolio Shares of Class A (unlimited
authorization--no par value) based
on 3,294,017 outstanding shares
of beneficial interest 3,294
Undistributed net investment
income 17
Accumulated net realized gain
on investments 250
--------
Total Net Assets--100.0% $546,675
========
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) THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS REPRESENTS THE SECURITY'S
DISCOUNT RATE AT PURCHASE.
PRIME OBLIGATION MONEY MARKET FUND
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
COMMERCIAL PAPER--54.6%
BANKING--16.9%
Abbey National Bank
5.720%, 10/30/97 $ 5,000 $ 5,004
Banc One Funding
5.560%, 08/15/97 8,000 7,944
Bank of America
5.520%, 09/05/97 5,000 4,950
Bankers Trust
5.300%, 07/21/97 5,000 4,985
5.350%, 08/26/97 5,000 4,958
National City
5.560%, 08/08/97 10,000 9,941
Norwest Financial
5.550%, 07/28/97 10,000 9,958
5.550%, 09/05/97 5,000 4,949
Royal Bank of Canada
5.620%, 07/31/97 4,782 4,760
Toronto Dominion
5.500%, 07/11/97 10,000 9,985
--------
67,434
--------
FINANCIAL SERVICES--28.2%
American Express
5.550%, 07/21/97 5,000 4,985
5.530%, 07/28/97 5,000 4,979
Centric Funding
5.620%, 07/02/97 5,000 4,999
5.640%, 08/26/97 5,000 4,956
Ford Motor Credit
5.600%, 07/02/97 5,000 4,999
5.530%, 07/24/97 5,000 4,982
5.540%, 08/18/97 5,000 4,963
General Electric Capital
5.520%, 07/11/97 5,000 4,992
5.550%, 07/25/97 5,000 4,982
5.550%, 07/28/97 5,000 4,979
GTE Funding
5.690%, 07/07/97 5,000 4,995
5.540%, 07/17/97 5,000 4,988
5.560%, 07/17/97 5,000 4,988
Merrill Lynch
5.650%, 07/16/97 5,000 4,988
5.560%, 07/23/97 5,000 4,983
5.600%, 08/20/97 5,000 4,961
Pacificorp
5.550%, 07/07/97 8,000 7,993
Safeco Credit
5.530%, 08/11/97 5,000 4,969
5.630%, 08/19/97 5,000 4,962
5.610%, 09/02/97 5,000 4,951
USAA Capital
5.550%, 07/14/97 10,000 9,980
--------
112,574
--------
4
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[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
INDUSTRIAL--8.2%
Colonial Pipeline
5.600%, 08/06/97 $ 8,000 $ 7,955
5.300%, 08/14/97 10,000 9,935
Hasbro
5.600%, 08/27/97 10,000 9,911
PHH Corporation
5.560%, 08/18/97 5,000 4,963
--------
32,764
--------
UTILITIES--1.3%
Pacific Gas & Electric
5.590%, 08/26/97 5,010 4,967
--------
Total Commercial Paper
(Cost $217,739) 217,739
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS--18.0%
Federal Farm Credit Bank
5.500%, 09/02/97 5,000 5,000
Federal Home Loan Bank (A)
5.410%, 07/02/97 10,000 9,999
5.540%, 08/14/97 5,000 4,966
5.790%, 01/21/98 5,000 5,000
5.875%, 01/30/98 5,000 5,000
5.805%, 02/13/98 5,300 5,301
5.710%, 02/19/98 8,500 8,500
5.670%, 03/05/98 5,000 5,000
6.125%, 05/22/98 3,000 3,000
6.085%, 06/12/98 5,000 5,000
Federal Home Loan Mortgage (A)
5.530%, 07/15/97 5,000 4,989
5.440%, 08/13/97 10,000 9,935
--------
Total U.S. Government Agency Obligations
(Cost $71,690) 71,690
--------
CORPORATE OBLIGATIONS--2.5%
Ford Motor Credit
6.250%, 02/26/98 5,000 5,005
PNC Bank
5.900%, 10/15/97 5,000 5,004
--------
Total Corporate Obligations
(Cost $10,009) 10,009
--------
CERTIFICATES OF DEPOSIT--7.5%
Bank of New York
5.375%, 10/10/97 10,000 9,983
Banker's Trust
6.240%, 04/02/98 5,000 5,003
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Morgan Guaranty
5.850%, 03/16/98 $ 5,000 $ 4,993
Royal Bank of Canada
5.500%, 08/06/97 10,000 10,001
--------
Total Certificates of Deposit
(Cost $29,980) 29,980
--------
REPURCHASE AGREEMENTS--17.5%
Barclays
5.88%, dated 06/30/97, matures
07/01/97, repurchase price
$36,995,335 (collateralized by
U.S. Treasury Securities, par
value $32,184,000, maturity
dates ranging from 08/15/98
to 05/15/17, market value
$37,729,435) (B) 36,989 36,989
J.P. Morgan
5.88%, dated 06/30/97, matures
07/01/97, repurchase price
$17,466,855 (collateralized by
U.S. Treasury Note, par value
$17,496,000, 5.875%, matures
02/28/99, market value
$17,813,533) (B) 17,464 17,464
Lehman Brothers
5.88%, dated 06/30/97, matures
07/01/97, repurchase price
$15,569,880 (collateralized by
U.S. Treasury Note, par value
$15,890,000, 6.00%, matures
06/30/99, market value
$15,880,149) (B) 15,567 15,567
--------
Total Repurchase Agreements
(Cost $70,020) 70,020
--------
Total Investments--100.1%
(Cost $399,438) 399,438
--------
OTHER ASSETS AND LIABILITIES--(0.1%)
Other Assets and Liabilities, Net (39)
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value)
based on 384,534,756 outstanding
shares of beneficial interest 384,535
Portfolio Shares of Class A (unlimited
authorization -- no par value)
based on 14,520,656 outstanding
shares of beneficial interest 14,521
5
<PAGE>
Statement of Net Assets
PRIME OBLIGATION MONEY MARKET FUND (CONTINUED)
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Undistributed net investment
income $ 3
Accumulated net realized loss
on investments (19)
--------
Total Net Assets--100.0% $399,040
========
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) GOVERNMENT AGENCY DISCOUNT NOTE -- THE RATE REFLECTED ON THE STATEMENT
OF NET ASSETS REPRESENTS THE SECURITY'S DISCOUNT RATE AT PURCHASE.
(B) TRI-PARTY REPURCHASE AGREEMENT.
TAX-EXEMPT MONEY MARKET FUND
- --------------------------------------------------------------------------------
MUNICIPAL BONDS--98.8%
ALASKA--0.5%
Anchorage, Series A (GO)
(AMBAC) (A)
3.800%, 08/01/97 $ 390 390
--------
ARIZONA--3.2%
Avondale, Industrial Development
(RB) (B)
4.150%, 07/02/97 1,500 1,500
Tempe, High School District 213
(GO) (FGIC)
4.200%, 07/01/97 825 825
--------
2,325
--------
FLORIDA--4.2%
Alachua County, Refunding
Bonds (A) (B) (C)
3.700%, 07/01/97 700 700
State, Housing Finance Authority,
Hampton Project (RB) (A) (B) (C)
4.300%, 08/06/97 1,900 1,900
Orange County, Housing Finance
Authority, Windscape Project
(RB) (A) (B) (C)
4.350%, 07/02/97 400 400
--------
3,000
--------
GEORGIA--2.8%
Marietta, Housing Authority,
Bells Ferry (A) (C)
3.550%, 01/15/98 2,000 2,000
--------
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
ILLINOIS--4.7%
State, Development Finance Authority,
Illinois Power Project,
Series B (A) (B) (C)
4.150%, 07/02/97 $2,000 $ 2,000
State, Health Facilities Authority,
Sisters Hospital Service,
Series E (MBIA) (A) (B) (C)
4.150%, 07/02/97 1,400 1,400
--------
3,400
--------
IOWA--0.6%
Polk County, Hospital Equipment
Improvement Authority
(MBIA) (B) (C)
4.150%, 07/02/97 400 400
--------
KENTUCKY--2.1%
State, Rural Water Public Projects
4.375%, 04/01/98 1,500 1,507
--------
LOUISIANA--15.7%
New Orleans, Aviation Board,
Series A (RB) (MBIA) (A) (B) (C)
4.150%, 07/02/97 2,900 2,900
New Orleans, Aviation Board,
Series B (RB) (MBIA) (A) (B) (C)
4.150%, 07/02/97 3,900 3,900
New Orleans, Aviation Board,
Series C (GO) (MBIA)
(A) (B) (C)
4.150%, 07/02/97 1,500 1,500
State, Public Facilities Authority,
Hospital Revenue (AMBAC)
(A) (B) (C)
4.150%, 07/02/97 1,000 1,000
State, Public Facilities Authority,
Willis-Knighton Medical Center
(AMBAC) (B) (C)
4.150%, 07/02/97 2,000 2,000
--------
11,300
--------
MARYLAND--8.5%
Anne Arundel (CP)
3.700%, 09/09/97 1,500 1,500
Baltimore County (CP)
3.650%, 10/01/97 2,000 2,000
Howard County, Multi-Family
Housing Authority, Sherwood
Crossing Project (A) (B)
3.750%, 12/01/97 1,600 1,600
6
<PAGE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Montgomery County, Draper Lane
Apartments (RB) (FGIC) (B)
4.200%, 07/02/97 $1,000 $ 1,000
--------
6,100
--------
MICHIGAN--2.5%
State, Hospital Financing Authority
(A) (B) (C)
4.300%, 07/02/97 1,800 1,800
--------
MINNESOTA--1.9%
New Brighton, Industrial
Development Authority,
Unicare Nursing Homes
Project (A) (B) (C)
4.450%, 07/02/97 1,400 1,400
--------
MISSOURI--3.6%
Osage Beach, Industrial Development
Authority (A) (B) (C)
3.700%, 07/01/97 275 275
Riverport Associates, (A) (B) (C)
4.350%, 07/02/97 400 400
Saint Charles County, Industrial
Development Authority, Cedar
Ridge Apartments (A) (B) (C)
4.300%, 07/02/97 675 675
Springfield, Industrial Development
Authority, Pebblecreek Apartments
(A) (B) (C)
4.200%, 07/02/97 1,200 1,200
--------
2,550
--------
NEW JERSEY--19.5%
Bayonne (GO)
4.250%, 07/10/97 1,500 1,500
3.900%, 09/12/97 1,200 1,201
Fort Lee, Anticipation Note
4.200%, 02/02/98 1,500 1,503
Madison Boro, Anticipation Note
3.830%, 03/20/98 1,525 1,525
Middlesex County (GO)
3.900%, 07/15/97 500 500
Morris County (GO)
3.970%, 08/07/97 500 500
New Brunswick, Anticipation Note
4.000%, 12/09/97 1,000 1,001
New Providence, Anticipation Note
4.500%, 09/19/97 600 601
Northvale, Anticipation Note
3.990%, 06/09/98 1,000 1,001
Park Ridge, Anticipation Note
3.660%, 08/05/97 2,600 2,600
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Princeton, Anticipation Note
3.850%, 12/12/97 $ 300 $ 300
State, Economic Development
Authority, Peddie School
Project (A) (B) (C)
4.050%, 07/03/97 1,350 1,350
State, Education Facilities Authority,
Series B (AMBAC) (RB)
4.000%, 03/01/98 270 271
Summit, Anticipation Note
3.820%, 12/05/97 150 150
--------
14,003
--------
NORTH CAROLINA--4.0%
State, Educational Facilities Authority,
Guilford College Project (RB) (B)
4.150%, 07/01/97 1,400 1,400
Wake County, Carolina Power &
Light Company (A) (B) (C)
4.150%, 07/02/97 1,100 1,100
Winston Salem, Risk Acceptance
Management Corporation
(A) (B) (C)
4.200%, 07/02/97 365 365
--------
2,865
--------
PENNSYLVANIA--2.8%
Delaware County (CP)
3.700%, 08/14/97 2,000 2,000
--------
TENNESSEE--5.6%
Morristown, Industrial Development
Board, Williamhouse Regency (B)
4.350%, 07/02/97 2,000 2,000
Nashville & Davidson Counties,
Old Hickory Towers, Series A
Project (A) (B) (C)
4.350%, 07/02/97 2,000 2,000
--------
4,000
--------
TEXAS--11.0%
Hunt County, Industrial
Development Authority,
Trico Industries (A) (B) (C)
4.100%, 07/01/97 2,700 2,700
State (TAN)
4.750%, 08/29/97 5,150 5,160
--------
7,860
--------
VIRGINIA--5.6%
Harrisonburg, Multi-Family Housing
Authority, Rolling Brook Village
Apartments, Series A (RB) (A) (C)
2.800%, 02/01/98 3,000 3,000
7
<PAGE>
Statement of Net Assets
TAX-EXEMPT MONEY MARKET FUND (CONTINUED)
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Richmond, Capital Region Authority,
International Airport, Series B
(AMBAC) (A) (B) (C)
4.050%, 07/02/97 $1,000 $ 1,000
--------
4,000
--------
Total Municipal Bonds
(Cost $70,900) 70,900
--------
CASH EQUIVALENT--0.6%
Goldman Sachs Tax-Free
Money Market 406 406
--------
Total Cash Equivalent
(Cost $406) 406
--------
Total Investments--99.4%
(Cost $71,306) 71,306
--------
OTHER ASSETS AND LIABILITIES--0.6%
Other Assets and Liabilities, Net 470
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization--no par value) based
on 67,433,484 outstanding shares
of beneficial interest 67,433
Portfolio Shares of Class A (unlimited
authorization--no par value) based
on 4,349,553 outstanding shares
of beneficial interest 4,350
Accumulated net realized loss
on investments (7)
--------
Total Net Assets--100.0% $ 71,776
========
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) SECURITIES ARE HELD IN CONNECTION WITH A LETTER OF CREDIT OR OTHER
CREDIT SUPPORT.
(B) FLOATING RATE INSTRUMENT WITH DEMAND FEATURES. THE RATE REFLECTED ON THE
STATEMENT OF NET ASSETS IS THE RATE IN EFFECT ON JUNE 30, 1997. THE DATE
SHOWN IS THE LONGER OF THE RESET DATE OR DEMAND DATE.
(C) PUT OR DEMAND FEATURES EXIST REQUIRING THE ISSUER TO REPURCHASE THE
INSTRUMENT PRIOR TO MATURITY.
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--FEDERAL GUARANTY INSURANCE COMPANY
MBIA--MUNICIPAL BOND INVESTORS ASSURANCE
U.S. TREASURY SECURITIES PLUS MONEY
MARKET FUND
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS--49.0%
U.S. Treasury Bill
4.995%, 08/21/97 $10,000 $ 9,929
U.S. Treasury Notes
5.625%, 08/31/97 10,000 10,002
5.625%, 10/31/97 15,000 15,010
--------
Total U.S. Treasury Obligations
(Cost $34,941) 34,941
--------
REPURCHASE AGREEMENTS--51.0%
Barclays
5.89%, dated 06/30/97, matures
07/01/97, repurchase price
$15,366,705 (collateralized by
U.S. Treasury Bond, par value
$12,894,000, 8.75%, matures
05/15/17, market value
$15,672,238) (A) 15,364 15,364
J.P. Morgan
5.89%, dated 06/30/97, matures
07/01/97, repurchase price
$2,033,493 (collateralized by
U.S. Treasury Note, par value
$2,037,000, 5.875%, maturing
02/28/99, market value
$2,073,969) (A) 2,033 2,033
Lehman Brothers
5.89%, dated 06/30/97, matures
07/01/97, repurchase price
$17,937,394 (collateralized by
U.S. Treasury Notes, par value
$17,989,000, maturity dates
ranging from 06/30/99 to
01/15/00, market value
$18,288,530) (A) 17,935 17,935
Morgan Stanley
5.89%, dated 06/30/97, matures
07/01/97, repurchase price
$1,001,956 (collateralized by
U.S. Treasury Note, par value
$985,000, 6.625%, matures
07/31/01, market value
$1,023,321) (A) 1,002 1,002
--------
Total Repurchase Agreements
(Cost $36,334) 36,334
--------
Total Investments--100.0%
(Cost $71,275) 71,275
--------
8
<PAGE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 71,294,798 outstanding shares
of beneficial interest $ 71,295
Accumulated net realized loss
on investments (20)
--------
Total Net Assets--100.0% $ 71,275
--------
Net Asset Value, Offering and Redemption
Price Per Share-- Class I $ 1.00
========
(A) TRI PARTY REPURCHASE AGREEMENT.
SHORT-TERM INVESTMENT FUND
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS--89.8%
U.S. Treasury Bills (A)
4.400%, 07/03/97 $4,000 3,999
5.290%, 07/24/97 3,000 2,990
5.520%, 08/21/97 1,000 993
5.529%, 09/18/97 5,500 5,438
5.133%, 11/13/97 2,000 1,961
5.160%, 12/11/97 1,000 977
5.283%, 01/08/98 2,000 1,945
5.195%, 02/05/98 1,000 968
5.380%, 03/05/98 1,000 964
5.610%, 04/02/98 4,000 3,838
5.319%, 06/25/98 3,000 2,839
--------
Total U.S. Treasury Obligations
(Cost $26,899) 26,912
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS--5.0%
Federal Farm Credit
5.550%, 07/01/97 1,000 1,000
Federal Home Loan Bank (MTN)
5.970%, 03/11/98 500 500
--------
Total U.S. Government Agency Obligations
(Cost $1,500) 1,500
--------
CORPORATE BONDS--2.5%
Chrysler Financial (MTN)
7.050%, 04/29/98 500 504
Wal-Mart Stores
5.500%, 03/01/98 250 249
--------
Total Corporate Bonds
(Cost $752) 753
--------
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENTS--3.0%
SEI Liquid Asset Trust--
Government Portfolio $753 $ 753
SEI Liquid Asset Trust--
Treasury Portfolio 163 163
--------
Total Cash Equivalents
(Cost $916) 916
--------
Total Investments--100.3%
(Cost $30,067) 30,081
--------
OTHER ASSETS AND LIABILITIES--(0.3%)
Other Assets and Liabilities, Net (102)
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 2,902,120 outstanding shares
of beneficial interest 29,087
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 94,097 outstanding shares
of beneficial interest 945
Distributions in excess of net
investment income (4)
Accumulated net realized loss
on investments (62)
Net unrealized appreciation
on investments 13
--------
Total Net Assets--100.0% $ 29,979
========
Net Asset Value, Offering and Redemption
Price Per Share--Class I $ 10.00
========
Net Asset Value and Redemption
Price Per Share--Class A $ 10.02
========
Maximum Offering
Price Per Share--Class A
($10.02 / 99%) $ 10.12
========
MTN--MEDIUM TERM NOTE
(A) THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS REPRESENTS THE SECURITY'S
DISCOUNT RATE AT PURCHASE.
9
<PAGE>
Statement of Net Assets
FIXED INCOME FUND
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--36.9%
Federal Farm Credit Bank
8.650%, 10/01/99 $2,500 $2,625
6.560%, 12/23/99 60 60
5.960%, 08/03/00 500 490
6.920%, 09/09/03 1,000 1,012
Federal Home Loan Bank
8.450%, 07/26/99 500 521
8.375%, 10/25/99 500 523
7.980%, 12/07/99 900 935
6.900%, 04/28/00 5,000 5,008
6.674%, 10/30/00 500 497
7.780%, 10/19/01 2,000 2,091
6.620%, 06/25/02 5,000 4,977
7.010%, 07/15/02 2,500 2,506
6.380%, 04/29/03 1,000 974
7.000%, 10/25/05 500 491
7.000%, 03/06/06 1,000 989
7.230%, 12/18/06 500 497
7.500%, 10/25/10 500 493
7.250%, 12/15/10 25 24
7.175%, 01/24/11 250 250
Federal Home Loan Mortgage Corporation
6.090%, 03/01/00 500 494
5.875%, 03/22/00 1,000 989
7.050%, 07/09/01 700 703
6.970%, 09/05/01 1,300 1,309
7.125%, 09/24/03 1,000 1,004
7.040%, 10/22/03 750 750
6.375%, 12/23/03 1,000 972
7.030%, 04/05/04 1,000 997
7.970%, 07/07/04 1,065 1,065
6.540%, 01/11/06 500 485
6.250%, 02/01/06 500 478
6.130%, 02/27/06 1,600 1,531
6.785%, 03/01/06 500 490
7.270%, 04/07/06 200 199
7.550%, 08/23/06 1,000 1,008
7.585%, 09/19/06 1,000 1,026
7.340%, 11/03/06 2,000 2,000
Federal National Mortgage Association
8.200%, 03/10/98 500 508
5.320%, 07/01/98 500 498
4.875%, 10/15/98 500 494
7.050%, 12/10/98 1,000 1,014
8.700%, 06/10/99 1,000 1,045
8.350%, 11/10/99 500 523
8.250%, 12/18/00 500 528
6.150%, 12/14/01 500 491
7.500%, 02/11/02 1,300 1,348
7.000%, 08/12/02 2,400 2,401
6.950%, 09/10/02 1,090 1,089
6.800%, 01/10/03 1,500 1,517
6.625%, 04/10/03 1,000 986
6.450%, 06/10/03 4,750 4,641
6.200%, 07/10/03 3,000 2,911
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
6.250%, 08/12/03 $ 2,960 $ 2,870
5.930%, 09/26/03 1,750 1,669
6.200%, 11/12/03 1,000 966
6.400%, 01/13/04 3,000 2,911
6.900%, 03/10/04 1,000 981
7.700%, 08/10/04 500 504
7.500%, 08/25/05 500 504
6.850%, 09/12/05 1,000 988
6.710%, 02/13/06 500 489
7.560%, 06/12/06 900 924
7.760%, 08/02/06 2,000 2,031
7.500%, 08/11/06 2,500 2,505
7.520%, 08/23/06 500 505
7.060%, 11/29/06 3,250 3,206
7.000%, 02/18/11 300 289
Federal National Mortgage
Association (MTN)
7.000%, 05/08/00 5,000 5,013
6.850%, 05/08/02 5,000 5,015
6.420%, 02/25/04 1,100 1,068
6.490%, 01/19/06 1,000 969
Tennessee Valley Authority
6.375%, 06/15/05 2,000 1,952
--------
Total U.S. Government Agency Obligations
(Cost $95,719) 95,816
--------
U.S. TREASURY OBLIGATIONS--22.8%
U.S. Treasury Notes
7.250%, 02/15/98 10,000 10,091
9.000%, 05/15/98 1,000 1,027
5.500%, 02/28/99 5,000 4,958
7.875%, 11/15/99 1,000 1,037
6.375%, 01/15/00 4,000 4,020
6.375%, 05/15/00 5,000 5,016
6.125%, 09/30/00 1,000 995
6.375%, 08/15/02 26,075 26,061
6.250%, 02/15/03 1,500 1,488
5.750%, 08/15/03 1,500 1,448
5.875%, 02/15/04 3,000 2,908
--------
Total U.S. Treasury Obligations
(Cost $59,635) 59,049
--------
CORPORATE BONDS--14.7%
BANKING--0.9%
Bank of Delaware
5.415%, 02/12/99 1,000 986
Mellon Bank
7.000%, 03/15/06 450 445
Morgan Guaranty
7.375%, 02/01/02 500 512
Norwest Financial
7.750%, 08/15/01 400 416
--------
2,359
--------
10
<PAGE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
FINANCIAL SERVICES--3.5%
Associates of North America
7.500%, 05/15/99 $ 500 $ 510
6.000%, 06/15/00 1,500 1,476
Ford Capital BV
9.125%, 05/01/98 1,000 1,026
Ford Motor Credit
6.375%, 10/06/00 1,000 992
6.250%, 11/08/00 1,000 987
6.750%, 05/15/05 1,000 977
General Electric Capital
5.500%, 11/01/01 1,000 952
General Electric Capital (MTN)
6.875%, 04/15/00 1,000 1,009
General Motors Capital
7.100%, 03/15/06 150 151
Morgan Stanley
6.375%, 12/15/03 1,000 972
--------
9,052
--------
INDUSTRIAL--7.2%
Anheuser Busch
6.750%, 06/01/05 1,000 987
Boeing
6.350%, 06/15/03 2,000 1,952
E.I. DuPont de Nemours
6.000%, 12/01/01 2,000 1,940
6.750%, 10/15/02 1,000 997
Eli Lilly
6.250%, 03/15/03 2,000 1,957
Exxon Capital
6.500%, 07/15/99 1,500 1,508
Gannett
5.850%, 05/01/00 1,000 984
H.J. Heinz
6.875%, 01/15/03 1,000 1,004
Pitney Bowes Credit
Corporation (MTN)
6.780%, 07/16/01 500 501
Sears Roebuck
6.690%, 04/30/01 3,000 2,989
Sears Roebuck (MTN)
6.630%, 08/11/03 1,000 983
SmithKline Beecham (MTN)
6.625%, 10/01/05 2,000 1,945
Wal-Mart Stores
6.125%, 10/01/99 1,000 995
--------
18,742
--------
UTILITIES--3.1%
AT&T
7.500%, 06/01/06 1,000 1,032
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Bell Telephone of Pennsylvania
6.125%, 03/15/03 $ 200 $ 194
Consolidated Edison (MTN)
6.250%, 04/01/98 600 600
Duke Power
7.000%, 09/01/05 1,300 1,282
Emerson Electric
6.300%, 11/01/05 500 481
New England Telephone and Telegraph
8.625%, 08/01/01 500 533
New York Telephone
6.250%, 02/15/04 1,000 964
U.S. West Communications
6.125%, 11/15/05 2,000 1,897
Union Pacific
6.125%, 01/15/04 1,000 942
--------
7,925
--------
Total Corporate Bonds
(Cost $38,230) 38,078
--------
MUNICIPAL BONDS--16.8%
Alabama State, Housing Finance
Authority (RB)
7.625%, 08/01/10 855 883
Arkansas State, Development
Finance Authority (RB)
9.750%, 11/15/05 669 745
Baltimore, Maryland, Baltimore City
Parking, Series B (RB) (FGIC)
7.950%, 07/01/03 510 535
Buffalo, New York State, Pens System,
Series D (GO) (FGIC)
8.500%, 08/15/03 360 389
Camden County, New Jersey
Improvement Authority,
Series A (RB)
7.200%, 01/01/04 2,200 2,217
Collier County, Florida County
Water and Sewer Authority,
Series A (RB) (FGIC)
6.300%, 07/01/04 450 434
6.750%, 07/01/08 790 757
Colorado State, Housing Finance
Authority, Single Family Program
Series A (RB)
6.625%, 12/01/08 580 543
Colorado State, Housing Finance
Authority, Single Family Program
Series B-1 (RB)
10.400%, 08/01/03 185 191
11
<PAGE>
Statement of Net Assets
FIXED INCOME FUND (CONTINUED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Florida State, Housing Finance
Agency, Taxable Single Family
Mortgage A (RB)
7.500%, 07/01/14 $1,000 $ 1,021
Fort Myers, Florida Taxable
Imports Authority, Series B
(RB) (AMBAC)
8.250%, 12/01/01 240 254
8.450%, 12/01/03 645 692
Fresno, California Pension
Obligation (RB)
7.230%, 06/01/05 1,635 1,653
Gillette, Wyoming FMHA
Community Program (SOB)
10.250%, 01/01/11 1,095 1,226
Houston, Texas Airport Systems
(RB) (FGIC)
6.100%, 07/01/01 1,260 1,232
Lower Paxton Township,
Pennsylvania Sewer Authority,
Series B (RB) (FGIC)
6.700%, 07/01/98 205 206
Massachusetts State, Housing
Finance Authority, Series A (RB)
Pre-Refunded @ 102 (A)
9.900%, 08/01/08 310 317
Metropolitan Washington D.C.
& Virginia Airport Authority
(RB) (MBIA)
6.900%, 10/01/08 1,980 1,938
Michigan State, Higher Education
Student Loan Authority,
Series XV-C (RB)
7.250%, 09/01/02 775 770
Minneapolis and St. Paul, Minnesota,
Metropolitan Airports Authority,
Series 9 (GO)
8.600%, 01/01/10 900 970
8.950%, 01/01/22 1,000 1,088
Missouri State, Economic
Development & Infrastructure
Board Health Services, Series A
(RB) (MBIA)
8.400%, 06/01/04 1,350 1,455
Monrovia, California Redevelopment
Agency (AMBAC)
8.100%, 05/01/01 650 677
New Hampshire State, Taxable-Pease
Development Authority (GO)
7.050%, 07/01/06 410 409
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
New Hampsire State, Business
Finance Authority, Series A (RB)
8.600%, 11/01/12 $2,165 $2,335
New Jersey State (COP)
8.000%, 12/15/02 1,035 1,075
New Jersey State, Economic
Development Authority (RB)
7.800%, 03/15/07 1,645 1,705
New Jersey State, Housing
and Mortgage Rental Finance
Agency, Series D (RB)
8.800%, 11/01/07 590 614
New York State, Mortgage
Agency, Series 15 (RB)
7.375%, 10/01/12 2,095 2,074
North Carolina State
University, NC Raleigh
(RB) (MBIA)
7.700%, 12/15/07 1,175 1,218
Oklahoma City, Oklahoma Airport
Trust, Senior Lien, Series 15 (RB)
9.500%, 01/01/06 350 367
Oklahoma City, Oklahoma Airport
Trust, Senior Lien, Series 16 (RB)
9.875%, 07/01/12 765 806
Oklahoma City, Oklahoma Airport
Trust, Senior Lien, Series 17 (RB)
8.300%, 10/01/12 2,015 2,101
Oklahoma City, Oklahoma Airport
Trust, Junior Lien, Series 21
(RB) (MBIA)
6.750%, 07/01/05 1,010 991
Oklahoma State, Single Family
Housing Finance Agency
(RB) (MBIA)
8.700%, 09/01/13 1,205 1,277
Oklahoma, Single Family Housing
Finance Agency, Series A
(RB) (AMBAC)
7.300%, 12/01/14 1,205 1,178
Palm Beach County, Florida State
Airport Systems Revenue
(RB) (MBIA)
9.500%, 10/01/10 1,375 1,476
Secaucus, New Jersey, Municipal
Utilities Authority (RB)
8.500%, 12/01/06 600 649
Texas State, Public Finance
Authority (RB)
9.000%, 12/01/06 585 635
12
<PAGE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Utah State, Single Family Mortgage
Housing Finance Agency,
Series A-1
9.550%, 07/01/05 $ 405 $ 417
Vero Beach, Florida, Water
and Sewer Authority,
Series A (RB) (FGIC)
6.400%, 12/01/08 1,885 1,781
Virginia State, Housing
Development Authority,
Multi-Family, Series G (RB)
6.500%, 11/01/07 740 703
Wisconsin, Housing and Economic
Development Authority,
Series B (RB)
7.400%, 01/01/17 1,705 1,684
--------
Total Municipal Bonds
(Cost $43,532) 43,688
--------
U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS--4.3%
Federal Home Loan Mortgage
7.500%, 10/15/01 973 973
6.500%, 06/15/04 500 502
9.500%, 10/01/04 124 130
9.500%, 07/01/06 66 70
8.000%, 06/01/07 205 210
9.000%, 08/01/08 116 120
10.000%, 02/01/09 65 71
9.250%, 05/01/09 459 487
9.500%, 08/01/09 42 45
8.750%, 09/01/09 57 60
10.000%, 04/01/10 34 37
8.750%, 09/01/10 208 218
9.500%, 09/01/10 151 162
9.750%, 11/01/10 147 158
10.250%, 11/01/10 17 19
9.500%, 03/01/11 50 54
9.500%, 04/01/11 110 118
10.000%, 05/01/11 197 213
10.000%, 12/01/13 56 61
8.750%, 07/01/15 34 36
7.500%, 07/15/15 750 757
9.250%, 08/01/15 253 269
9.000%, 10/01/15 104 110
6.500%, 04/15/16 588 568
9.500%, 09/01/16 29 31
9.000%, 10/01/16 59 62
9.500%, 11/01/16 62 67
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
8.500%, 07/01/17 $ 62 $ 64
9.000%, 10/01/19 235 249
7.500%, 12/15/19 131 131
7.000%, 05/15/20 1,000 995
--------
Federal National Mortgage Association
8.000%, 06/25/04 500 513
7.000%, 05/25/05 353 356
6.950%, 05/25/06 1,157 1,151
8.000%, 03/01/07 166 170
7.000%, 04/01/07 145 142
9.000%, 03/01/09 72 76
8.500%, 08/01/17 86 89
6.700%, 09/25/18 910 905
8.000%, 01/25/19 450 460
--------
Government National Mortgage Association
9.000%, 03/15/08 46 49
9.000%, 11/15/08 161 171
9.500%, 10/15/20 101 109
--------
Total U.S. Government Mortgage-
Backed Obligations
(Cost $11,084) 11,238
--------
NON-AGENCY MORTGAGE-BACKED
OBLIGATION--0.4%
Discover Card Master Trust
6.200%, 11/15/03 1,000 974
--------
Total Non-Agency Mortgage-
Backed Obligation
(Cost $973) 974
--------
CASH EQUIVALENTS--2.9%
Aim Short-Term Prime Obligation 895 895
SEI Liquid Asset Trust--
Government Portfolio 6,443 6,443
SEI Liquid Asset Trust--
Treasury Portfolio 51 51
--------
Total Cash Equivalents
(Cost $7,389) 7,389
--------
Total Investments--98.8%
(Cost $256,562) 256,232
--------
OTHER ASSETS AND LIABILITIES--1.2%
Other Assets and Liabilities, Net 3,142
--------
13
<PAGE>
Statement of Net Assets
FIXED INCOME FUND (CONTINUED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization--no par value) based
on 25,098,519 outstanding shares
of beneficial interest $255,699
Portfolio Shares of Class A (unlimited
authorization--no par value) based
on 396,521 outstanding shares
of beneficial interest 4,566
Portfolio Shares of Class B (unlimited
authorization--no par value) based
on 2,017 outstanding shares
of beneficial interest 20
Distributions in excess of net
investment income (3)
Accumulated net realized loss
on investments (578)
Net unrealized depreciation
on investments (330)
--------
Total Net Assets--100.0% $259,374
========
Net Asset Value, Offering and Redemption
Price Per Share--Class I $ 10.17
========
Net Asset Value and Redemption
Price Per Share--Class A $ 10.14
========
Maximum Offering
Price Per Share -- Class A
($10.14 / 95.75%) $ 10.59
========
Net Asset Value and Offering
Price Per Share--Class B (1) $ 10.18
========
(1) CLASS B HAS A CONTINGENT DEFERRED SALES CHARGE.
(A) PRE-REFUNDED SECURITY -- THE MATURITY DATE SHOWN IS THE PRE-REFUNDED DATE.
COP--CERTIFICATE OF PARTICIPATION
GO--GENERAL OBLIGATIONS
MTN--MEDIUM TERM NOTE
RB--REVENUE BONDS
SOB--SPECIAL OBLIGATION BONDS
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--FEDERAL GUARANTY INSURANCE COMPANY
MBIA--MUNICIPAL BOND INSVESTORS ASSURANCE
NEW JERSEY MUNICIPAL SECURITIES FUND
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS--96.6%
CALIFORNIA--0.5%
Stockton, Housing Facility Project,
O'Connor Woods, Series A (RB)
5.200%, 09/20/09 $ 790 $ 788
--------
COLORADO--0.2%
State, Housing Finance Authority,
Single Family Program Project,
Series-A3 (RB)
6.500%, 11/01/23 235 243
--------
FLORIDA--0.5%
Dade County, Education Facilities
Authority, University of Miami
Project (RB) (MBIA)
7.650%, 04/01/10 500 547
Florida Housing Finance Authority,
Capital Appreciation, Single
Family Mortgage (RB) (B)
12.15%, 07/15/16 1,165 137
--------
684
--------
GUAM--0.4%
Guam Government,
Water System (RB)
6.850%, 07/01/99 375 394
6.950%, 07/01/00 250 268
--------
662
--------
HAWAII--0.1%
State, Housing Finance and
Development (RB)
6.750%, 07/01/20 190 197
--------
ILLINOIS--0.1%
State, Housing Development
Authority, Residential
Mortgage (RB)
6.950%, 08/01/22 185 193
--------
LOUISIANA--0.7%
Louisiana Public Facilities,
Student Loan (RB)
6.600%, 03/01/03 1,000 1,060
--------
MASSACHUSETTS--1.2%
State, Housing Finance Agency,
Residential Development
Authority (RB)
6.250%, 11/15/02 430 448
State, Housing Finance Agency
Authority, Single Family Homes
Project, Series 17 (AMT)
7.000%, 12/01/23 245 249
14
<PAGE>
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JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
State, Housing Finance Agency
Authority, Single Family Home
Project, Series 21 (AMT)
6.500%, 12/01/10 $ 95 $ 100
New England, Education Loan
Marketing (RB)
5.800%, 03/01/02 890 927
--------
1,724
--------
MISSISSIPPI--0.3%
State, Higher Education Authority,
Series B (AMT)
5.700%, 09/01/05 420 430
--------
NEVADA--0.1%
State, Housing Division Authority,
Single Family Homes Project,
Series B2 (AMT)
5.650%, 10/01/24 185 188
--------
NEW JERSEY--84.4%
Atlantic County (GO) (MBIA)
5.400%, 12/01/04 200 208
5.400%, 12/01/05 400 412
Atlantic County, Improvemant
Authority, Convention Center
Project (RB) (MBIA)
7.375%, 07/01/10 400 474
Bayonne (GO) (AMBAC)
6.200%, 07/15/01 300 319
Bayonne (GO) (FGIC)
5.900%, 05/01/05 150 160
Bergen County, General
Improvement Bonds (GO)
5.250%, 08/15/00 300 308
4.700%, 07/15/02 400 404
Bergen County (GO)
6.350%, 01/15/99 250 258
5.125%, 06/15/05 250 258
Bergen County, Utilities Authority,
Series A (RB) (FGIC)
6.100%, 06/15/04 500 542
Black Horse Pike, Regal School
District (COP) (MBIA)
7.150%, 06/15/98 275 283
Brick Township, Municipal Utilities
Authority (RB) (FGIC)
4.000%, 12/01/98 300 300
Bridgeton, (GO) (AMBAC)
5.000%, 01/01/05 300 301
Bridgewater & Raritan (GO)
6.125%, 05/01/05 200 212
6.125%, 05/01/06 100 105
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Burlington County (GO)
5.200%, 10/01/07 $ 700 $ 709
Camden, Board of Education
(GO) (FSA)
5.000%, 10/01/05 310 313
Camden (GO) (AMBAC)
7.750%, 08/01/99 200 214
Camden (GO) (FSA)
4.300%, 10/01/00 300 300
Camden County (GO) (FGIC)
5.000%, 02/01/04 200 203
5.000%, 02/01/08 500 497
Camden County (GO) (MBIA)
5.000%, 06/01/99 100 101
5.600%, 06/01/03 200 208
Camden County, Municipal Utilities
Authority (RB) (FGIC)
7.500%, 12/01/99 165 170
Camden County, Municipal Utilities
Authority, Pre-Refunded @102
(RB) (FGIC) (A)
7.500%, 12/01/97 335 347
Cape May County, Municipal
Utilities Authority (RB) (AMBAC)
5.000%, 08/01/03 800 818
Cape May County, Municipal Utilities
Authority, Series B (RB) (FGIC)
4.500%, 01/01/03 800 796
Cape May County (GO) (FGIC)
6.950%, 10/15/97 125 126
6.950%, 10/15/98 250 259
Clifton (GO) (AMBAC)
6.800%, 10/01/98 250 251
Clinton Township (GO)
7.350%, 08/01/01 300 330
Cranford Township (GO)
8.000%, 05/01/98 150 155
Cumberland County, Improvement
Authority (RB)
7.600%, 12/01/98 330 335
Delaware River, PA & NJ Port
Authority (RB) (FGIC)
5.450%, 01/01/12 250 252
Dover Township (GO) (AMBAC)
6.000%, 10/15/03 200 216
Edgewater Borough (GO) (MBIA)
5.100%, 09/15/00 300 307
Edison Township (AMBAC)
4.800%, 01/01/05 300 298
15
<PAGE>
Statement of Net Assets
NEW JERSEY MUNICIPAL SECURITIES FUND (CONTINUED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Edison Township (GO)
4.700%, 06/01/98 $ 250 $ 252
5.700%, 12/01/99 100 104
6.500%, 06/01/00 500 529
5.400%, 06/01/02 250 259
Edison Township (GO) (AMBAC)
4.500%, 01/01/02 500 496
Elizabeth (GO)
7.900%, 12/01/99 240 261
Elizabeth (GO) (FGIC)
4.300%, 07/15/99 100 100
4.625%, 07/15/03 200 200
Elizabeth, Additional School
Building Aid (GO)
9.000%, 03/01/01 150 172
Elizabeth, School Board
(GO) (MBIA)
7.000%, 03/15/04 250 282
Essex County, Bond Series B (GO)
6.800%, 12/15/97 500 507
6.850%, 12/15/98 650 665
Essex County, Improvement
Authority (RB) (AMBAC)
4.875%, 12/01/02 300 304
5.000%, 12/01/08 250 247
Essex County, Jail and
Youth Housing (RB)
6.500%, 12/01/06 345 388
Essex County, Orange
School District (RB)
5.550%, 12/01/04 150 157
Essex County, Pre-Refunded
@ 101 (FSA) (A)
6.300%, 12/01/01 300 325
Essex County, Pre-Refunded
@ 101 (GO) (AMBAC) (A)
6.050%, 02/01/99 145 151
Essex County, Property
and Equipment (RB)
5.850%, 12/01/03 300 311
Essex County, Series A
(GO) (MBIA)
4.600%, 10/01/03 200 199
Essex County, Utilities Authority,
Solid Waste Revenue (RB) (FSA)
5.000%, 04/01/04 250 253
Fair Lawn (GO)
6.500%, 04/01/99 200 208
Fair Lawn, Water Revenue (RB)
6.500%, 04/01/99 200 208
Fort Lee (GO)
4.850%, 02/01/02 250 253
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Franklin Township (GO)
5.600%, 11/01/05 $ 400 $ 418
Freehold, School District
Revenue (RB)
9.875%, 12/01/97 250 256
Galloway Township
(GO) (AMBAC)
5.000%, 12/15/09 350 346
Gloucester County (GO)
7.000%, 07/01/98 250 258
5.000%, 09/01/03 500 501
Gloucester County, General
Improvement, Series A
(GO) (AMBAC)
4.500%, 01/01/03 200 198
Gloucester County, Improvement
Authority, Landfill Project,
Series A (RB)
6.000%, 09/01/06 300 315
Gloucester County, Solid
Waste Resourse Revenue (AMT)
8.375%, 07/01/10 1,175 1,195
Gloucester County, Solid
Waste Revenue (GO) (FGIC)
7.100%, 10/15/97 100 101
Gloucester County, Solid
Waste Revenue (RB)
7.300%, 10/15/98 600 612
Gloucester County, Utilities
Authority (RB)
5.500%, 01/01/99 140 143
Gloucester County, Utilities
Authority (RB) (AMBAC)
4.800%, 03/01/02 300 303
Hackensack (GO)
6.100%, 06/01/05 250 265
6.100%, 06/01/07 250 263
Hackensack Meadowlands (RB)
7.125%, 06/01/02 500 530
Hackettstown, Municipal Utilities
Authority, Series F (RB) (FGIC)
5.050%, 10/01/04 500 507
Harrington Park (RB)
6.000%, 04/01/99 100 103
Hillsborough Township, Board of
Education (COP) (FSA)
5.500%, 12/15/99 250 257
Hillsborough Township,
School District (GO)
8.000%, 08/01/97 440 441
16
<PAGE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Hudson County (GO)
6.250%, 11/01/97 $ 100 $ 101
Hudson County (GO) (FGIC)
6.250%, 11/01/99 200 209
Hudson County, New Jersey
College, Series C (GO)
4.600%, 10/01/01 180 181
Hudson County, Utility
Authority (RB)
11.875%, 07/01/06 285 362
Hunterdon County (GO)
7.650%, 11/01/97 625 633
Jersey City (GO)
6.500%, 02/15/03 370 402
5.500%, 03/15/14 1,000 1,007
Jersey City, Redevelopment
Authority, Dixon Mill
Apartments (RB)
6.100%, 05/01/12 65 68
Jersey City, Water Utility (RB)
7.250%, 01/01/99 400 417
Lincoln Park (RB)
7.000%, 07/15/03 100 112
Livingston Township,
Board of Education
6.375%, 11/01/99 100 105
6.375%, 11/01/00 100 106
Long Branch, Sewer Authority
(RB) (FGIC)
4.900%, 06/01/00 300 304
5.200%, 06/01/05 500 511
5.250%, 06/01/06 200 204
Madison (RB)
7.125%, 08/01/98 250 259
Manchester Township
(GO) (MBIA)
7.750%, 10/01/98 300 303
Maple Shade Township
(GO) (AMBAC)
4.300%, 10/01/99 200 201
Marlboro Township (GO)
8.300%, 10/01/97 150 152
Mercer County, Improvement
Authority (RB) (MBIA)
6.000%, 06/01/04 250 264
Mercer County, Improvement
Authority (RB)
4.250%, 12/01/00 500 497
Mercer County, Improvement
Authority, Ewing Board of
Education Project (RB) (MBIA)
6.300%, 05/15/07 250 274
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
DESCRIPTION (000) VALUE (000)
- --------------------------------------------------------------------------------
Mercer County, Improvement
Authority, Hamilton Board
of Education Project (RB) (MBIA)
5.500%, 06/01/01 $ 200 $ 207
4.900%, 12/15/05 150 150
Mercer County, Sewer Improvement
Authority, Regional
Sludge Project (FGIC)
6.550%, 12/15/98 500 517
Middlesex County,
Property Tax (GO)
5.800%, 10/01/10 500 520
Middlesex County (GO)
3.900%, 07/15/97 200 200
4.200%, 07/15/99 150 150
4.500%, 07/15/01 500 503
Middlesex, Utility Authority
(RB) (FGIC)
6.100%, 03/15/00 200 208
Middletown Township, Sewer
Authority, Series A (RB) (FGIC)
4.900%, 01/01/05 800 800
Monmouth County (GO)
4.400%, 09/01/03 200 197
Monmouth County, Improvement
Authority (RB) (MBIA)
5.000%, 12/01/08 250 251
5.125%, 12/01/16 500 477
Monmouth County (RB)
4.500%, 10/01/98 500 502
4.750%, 07/15/03 200 201
Monmouth County (RB) (MBIA)
4.400%, 12/01/02 250 249
Monmouth County, Improvement
Authority, Government Loan
Project (RB) (MBIA)
4.350%, 12/01/01 500 499
Monmouth County, Improvement
Authority, Howell Township
Education Project (RB)
5.750%, 07/01/01 540 566
Monmouth County, Improvement
Authority (RB) (FSA)
5.450%, 07/15/13 850 852
Moorestown Township (GO)
5.000%, 02/01/12 150 144
5.000%, 02/01/15 150 142
Moorestown Township
(GO) (AMBAC)
6.000%, 09/01/07 300 319
Morris Plains (GO)
5.000%, 07/01/04 200 199
17
<PAGE>
Statement of Net Assets
NEW JERSEY MUNICIPAL SECURITIES FUND (CONTINUED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Morristown (GO) (FSA)
5.500%, 08/01/01 $ 100 $ 103
Mount Laurel Township (GO)
4.650%, 08/01/05 500 489
New Brunswick (GO) (FGIC)
6.400%, 07/15/03 400 427
New Brunswick, Parking
Authority (RB) (FGIC)
4.300%, 09/01/99 300 301
Newark, Board of Education Bonds
(GO) (MBIA)
5.875%, 12/15/11 370 387
Newark (GO) (AMBAC)
7.375%, 10/01/00 250 271
Newark, Housing Finance,
Fairview and Lock Street
Project (RB)
6.150%, 02/01/13 495 513
Newark, Water Utility
(GO) (MBIA)
5.500%, 10/01/14 475 478
North Arlington, Public
Improvements Authority (GO)
7.000%, 05/15/98 100 101
North Bergen Township,
(GO) (MBIA)
4.400%, 08/01/01 500 494
North Bergen Township, Municipal
Utilities Authority (RB) (FGIC)
4.800%, 12/15/03 300 301
North Bergen Township, Utilities
Authority (RB) (FGIC)
4.700%, 12/15/02 300 301
North Bergen Township, Utilities
Authority, Sewer Revenue
(RB) (FGIC)
7.625%, 12/15/19 900 933
North Jersey District, Water Supply
Wanaque North Project,
Series B (RB) (MBIA)
5.600%, 11/15/98 300 306
North Jersey, District Water Supply,
Wanaque South Project
(RB) (MBIA)
5.400%, 07/01/02 300 311
5.500%, 07/01/03 200 209
Ocean City (GO)
6.750%, 07/12/99 500 523
8.700%, 05/15/00 250 278
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Ocean County (GO)
7.000%, 08/15/00 $ 100 $ 107
4.600%, 11/01/03 500 498
5.800%, 09/01/10 500 521
Ocean Township (GO) (MBIA)
5.400%, 06/01/15 250 249
Parsippany Troy Hills Township (GO)
4.500%, 02/01/01 800 801
4.600%, 02/01/02 100 100
4.700%, 12/01/03 500 501
4.700%, 12/01/04 400 396
Passaic County, Board of
Education (GO)
9.400%, 09/01/02 150 182
Passaic County, Cash Flow
Management Project (GO)
6.400%, 11/15/01 300 321
Passaic County (GO)
4.700%, 09/01/03 250 252
Passaic County (GO) (FGIC)
4.750%, 09/01/04 500 499
5.550%, 04/01/09 250 258
Passaic County (GO) (MBIA)
4.350%, 05/01/03 200 196
4.450%, 05/01/04 200 196
Passaic County, Property Tax
Authority (GO)
7.100%, 09/01/97 200 201
Paterson (GO)
6.350%, 02/15/03 235 254
Paterson, School Board (GO)
7.400%, 08/01/00 250 272
Pequannock-Lincoln Park, Sewer
Authority (RB) (MBIA)
4.400%, 12/01/02 500 498
Perth Amboy (GO) (FSA)
6.200%, 09/01/00 300 316
6.400%, 09/01/02 300 327
Piscataway Township, School District
5.200%, 02/01/98 250 252
Point Pleasant (GO) (MBIA)
5.450%, 12/01/00 200 206
Port Authority of New York &
New Jersey (RB)
5.300%, 08/01/03 300 312
Princeton (GO)
4.400%, 09/01/01 300 300
Rahway (GO)
9.300%, 02/01/01 150 173
Rahway Valley, Sewer Authority (RB)
6.200%, 04/01/01 210 211
18
<PAGE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Roselle (GO) (MBIA)
4.750%, 10/15/04 $ 700 $ 700
Roxbury (COP)
5.000%, 10/15/00 250 252
Rutgers State University,
Pre-Refunded @ 102 (RB) (A)
7.100%, 05/01/98 200 209
Rutgers State University,
Series A (RB)
4.375%, 05/01/01 500 498
Rutgers State University,
Series S (RB)
5.000%, 05/01/04 500 508
Sayreville (GO) (MBIA)
10.125%, 12/01/00 250 294
Secaucus, Municipal Utility Authority,
Sewer Project, Series A (RB)
5.650%, 12/01/04 200 213
5.750%, 12/01/05 385 412
Somerset County (GO)
4.450%, 12/01/01 170 170
5.000%, 10/01/02 200 205
4.450%, 12/01/02 500 499
4.350%, 12/01/04 600 578
Somerset Raritan Valley, Sewer
Improvement Authority,
Series H (RB)
5.150%, 07/01/01 300 308
South Brunswick Township (GO)
7.125%, 07/15/98 100 103
6.300%, 04/01/04 250 269
South Jersey, Port Authority,
Marine Terminal Project,
Series C (RB)
5.900%, 01/01/98 200 202
South Jersey, Transportation
Authority, Transportation Systems,
Series B (RB) (MBIA)
5.500%, 11/01/02 250 260
State (GO)
4.750%, 02/15/98 400 403
5.100%, 02/15/00 1,200 1,223
5.300%, 02/15/02 850 877
7.000%, 04/01/02 250 272
6.400%, 09/15/02 250 269
5.400%, 02/15/03 300 311
State, Building Authority (RB)
9.625%, 02/01/03 230 275
4.400%, 06/15/03 500 493
4.500%, 06/15/04 500 490
4.700%, 06/15/06 250 246
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
State, Casino Reinvestment
Development Authority
(RB) (FSA)
5.000%, 10/01/04 $1,000 $1,007
5.250%, 10/01/09 1,000 997
State, Economic Development
Authority (RB)
4.900%, 08/15/04 200 203
7.400%, 12/01/09 200 203
State, Economic Development
Authority, Health Village 1996
Project (RB)
6.000%, 05/01/09 200 203
State, Economic Development
Authority, Saint Barnabas Project,
Series A (RB) (MBIA)
4.875%, 07/01/05 500 498
State, Economic Development
Authority, Series A (RB) (MBIA)
5.125%, 07/01/00 300 305
5.400%, 07/01/02 300 311
State, Economic Development
Authority, Series J (RB)
7.100%, 12/01/11 420 454
State, Economic Development
Authority, YWCA of
New Jersey (RB)
7.750%, 05/01/09 200 205
State, Education Facilities Authority,
Drew University Issue,
Series B (RB)
5.750%, 07/01/02 360 375
State, Educational Facilities Authority,
Drew University Issue, Series B
(RB) Pre-Refunded @ 102 (A)
7.450%, 02/01/98 485 503
State, Education Facilities Authority,
Glassboro State College (RB)
6.750%, 07/01/09 300 303
State, Educational Facilities
Authority, Medicine and
Dentistry, Series B (RB)
(AMBAC)
5.000%, 12/01/07 250 251
State, Educational Facilities
Authority, Rowan College,
Series C (RB) (MBIA)
5.050%, 07/01/03 300 305
5.250%, 07/01/05 300 307
19
<PAGE>
Statement of Net Assets
NEW JERSEY MUNICIPAL SECURITIES FUND (CONTINUED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
State, Educational Facilities
Authority, Series A (RB)
(AMBAC)
5.125%, 09/01/06 $ 300 $ 305
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%, 10/01/00 300 313
State, Health Care Facilities,
St. Peters Medical Center,
Series F (RB) (MBIA)
5.000%, 07/01/13 100 95
State, Health Care Facilities,
Shore Memorial Hospital
(RB) (MBIA)
7.100%, 07/01/98 100 103
State, Health Care Facilities,
Society of Vy, Hospital
Revenue (RB) (MBIA)
6.500%, 07/01/98 250 256
State, Health Care Facilities
Authority, Atlantic City
Medical Center (RB) (AMBAC)
5.000%, 07/01/02 300 306
State, Health Care Facilities
Authority, Chilton Memorial
Hospital (RB)
6.550%, 07/01/03 300 318
State, Health Care Facilities
Authority, Hackensack Medical
Center (RB) (MBIA)
5.100%, 07/01/03 500 511
State, Health Care Facilities
Authority, JFK Health Systems
(RB) (FGIC)
4.600%, 07/01/05 250 244
State, Health Care Facilities
Authority, Mountain Side
Hospital (RB) (FGIC)
6.000%, 07/01/00 300 314
State, Health Care Facilities
Authority, Shore Memorial
Healthcare Systems (RB) (FGIC)
4.800%, 07/01/03 200 201
State, Health Care Facilities
Financing Authority (RB)
6.800%, 08/01/19 3,380 3,587
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
State, Health Care Facilities
Financing Authority, Atlantic
County Medical Center,
Series A (RB)
8.375%, 08/01/00 $1,000 $1,039
State, Health Care Facilities
Financing Authority, Burdette
Tomlin Memorial Hospital,
Series C (RB) (FGIC)
7.250%, 07/01/97 155 155
State, Health Care Facilities
Financing Authority,
Cathedral Health, Series A (RB)
6.650%, 02/15/98 330 336
State, Health Care Facilities
Financing Authority, Pre-Refunded
@ 102 (RB) (A)
6.800%, 02/01/01 425 465
State, Health Care Facilities
Memorial, Health Alliance,
Series A (RB) (FGIC)
6.600%, 07/01/99 145 152
State, Higher Education Assistance
Authority (RB)
5.900%, 07/01/09 380 387
State, Higher Education Assistance
Authority, Series A (RB)
6.850%, 01/01/01 135 142
6.900%, 01/01/02 590 627
5.800%, 01/01/03 265 271
5.950%, 07/01/05 785 808
5.550%, 07/01/06 470 476
5.800%, 07/01/08 375 382
5.900%, 01/01/09 600 610
State, Highway Authority,
Garden State Parkway (RB)
5.300%, 01/01/99 250 254
6.750%, 01/01/99 100 102
6.600%, 01/01/11 975 1,072
State, Hillcrest Health Project
(RB) (AMBAC)
4.600%, 01/01/02 200 199
5.000%, 01/01/07 300 299
State, Housing and Manufacturing
Agency, Series A (RB) (MBIA)
7.100%, 10/01/98 100 103
State, Housing & Mortgage
Finance Agency (RB) (AMBAC)
5.300%, 05/01/06 325 333
State, Housing & Mortgage
Finance Agency, Section 8 (RB)
6.000%, 11/01/02 760 790
20
<PAGE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
State, Housing and Mortgage Agency,
Revenue Home Buyer
Series N (RB) (MBIA)
4.950%, 04/01/04 $ 110 $ 111
State, Housing and Mortgage
Authority (RB)
6.300%, 05/01/02 470 494
6.400%, 05/01/02 520 546
State, Housing and Mortgage
Finance Agency, Home Buyer
Series G (RB) (MBIA)
4.625%, 04/01/15 145 142
State, Housing and Mortgage
Finance Agency, Home Buyer
Series N (RB) (MBIA)
5.200%, 04/01/06 500 519
5.800%, 10/01/20 975 981
State, Housing and Mortgage
Finance Agency, Home Mortgage
Series A (RB) (MBIA)
7.200%, 10/01/99 300 310
State, Housing Finance
Authority (RB)
5.100%, 11/01/00 500 501
State, Montclair State University,
Series C (RB) (AMBAC)
5.375%, 07/01/08 1,285 1,322
State, New York and New Jersey
Port Authority (RB)
6.800%, 07/15/08 250 265
State, Raritan Overpass Project (RB)
4.300%, 08/01/01 1,000 996
State, Series A (COP)
6.100%, 10/01/01 1,165 1,229
State, Series D (GO)
5.625%, 02/15/05 150 159
State, Series E (GO)
5.000%, 07/15/04 100 102
State, South Orange & Maplewood
School District (GO)
6.125%, 11/01/01 150 159
State, Sports & Exposition (RB)
9.000%, 12/01/97 40 41
6.000%, 01/01/98 100 101
8.300%, 01/01/03 380 449
State, Sports & Exposition Authority,
Convention Center
Luxury Tax (RB) (MBIA)
5.000%, 07/01/98 150 151
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
State, Sports & Exposition Authority,
Convention Center Luxury Tax,
Series A (RB) (MBIA)
5.600%, 07/01/01 $ 175 $ 182
5.900%, 07/01/03 300 322
State, Sports & Exposition
Authority, Series A (RB)
5.000%, 09/01/06 515 516
State, Stateon Willingboro Township
(GO) (MBIA)
6.300%, 07/01/99 400 416
State, Sussex County, Pre-Refunded
@ 102 (GO) (A)
7.900%, 12/01/97 300 311
State, Transportation Authority,
Series A (RB)
4.625%, 06/15/02 300 302
State, Transportation Authority,
Series A (RB) (FSA)
5.300%, 12/15/01 200 207
State, Transportation Authority,
Series A (RB) (MBIA)
4.500%, 12/15/02 450 448
5.500%, 06/15/11 750 760
State, Transportation Authority,
Series B (RB) (MBIA)
5.200%, 06/15/06 1,850 1,892
State, Transportation System,
Series A (RB) (AMBAC)
5.200%, 12/15/00 200 205
State, Transportation Trust
Authority, Transportation
System, Series A (RB)
5.600%, 06/15/98 200 203
4.600%, 06/15/01 500 503
State, Transportation Trust
Authority, Transportation System,
Series A (RB) (MBIA)
4.625%, 06/15/02 500 503
5.500%, 06/15/13 500 505
State, Turnpike Authority (RB)
6.400%, 01/01/02 300 318
10.375%, 01/01/03 555 657
State, Turnpike Authority,
Series A (RB) (AMBAC)
5.900%, 01/01/04 500 523
6.400%, 01/01/07 1,485 1,580
State, Union Beach (GO)
6.050%, 02/01/98 200 202
State, Union County (GO)
4.400%, 10/01/05 500 484
21
<PAGE>
Statement of Net Assets
NEW JERSEY MUNICIPAL SECURITIES FUND (CONTINUED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
State, Union County, Improvement
Authority (RB)
4.700%, 11/01/05 $ 250 $ 250
State, University Medicine and
Dentistry, Series E (RB)
6.200%, 12/01/03 500 539
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%, 02/01/03 500 512
State, Wastewater Treatment
Authority (RB) (AMBAC)
4.250%, 03/01/00 500 498
4.400%, 03/01/04 200 195
State, Wastewater Treatment
Authority, Series A (RB)
5.350%, 07/01/97 100 100
State, Wastewater Treatment Trust,
Pre-Refunded @ 100.75
(RB) (FGIC) (A)
8.600%, 09/01/97 180 183
State, Wastewater Treatment Trust,
Pre-Refunded @ 102
(RB) (FGIC) (A)
9.000%, 09/01/97 300 308
State, Wastewater Treatment
Trust (RB)
6.400%, 06/15/98 250 255
6.600%, 06/15/00 250 263
6.875%, 06/15/04 300 320
6.400%, 07/01/06 2,215 2,381
State, Wastewater Treatment Trust,
Series A (RB)
5.000%, 09/01/06 450 453
6.000%, 07/01/10 965 1,006
State, West New York Municipal
Utilities (RB)
6.650%, 12/15/97 250 253
State, West New York Municipal
Utilities (RB) (FGIC) (B)
4.420%, 12/15/02 300 233
State, Westfield School District (GO)
6.650%, 08/01/98 400 411
State, Wildwood (GO) (MBIA)
7.000%, 07/15/97 200 200
State, Woodbridge Township,
Pre-Refunded @ 101 (RB) (A)
6.800%, 08/01/00 250 269
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
State, Woodbridge Township,
Series A (GO)
4.650%, 09/15/05 $ 100 $ 99
State, Woodbridge Township,
Series C (GO)
4.650%, 09/15/05 100 99
Stony Brook, Sewer Authority (RB)
4.500%, 12/01/00 500 504
Sussex County (GO)
6.700%, 08/01/97 300 301
Union County (GO)
4.400%, 09/01/01 500 501
4.400%, 10/01/04 500 487
5.750%, 02/01/05 100 105
Union County, Environmental
Improvement Authority (RB)
4.900%, 04/01/02 350 354
5.150%, 04/01/05 500 509
Union County, Improvement
Authority (RB)
4.350%, 03/01/01 125 125
5.050%, 03/01/08 125 125
Union County, Improvement
Authority Revenue, County
Granted Capital Equipment
Lease (RB)
4.375%, 11/01/02 200 198
Vineland, Additional State
School Building Aid (GO)
8.500%, 05/01/01 100 114
Wanaque Valley, Sewer Authority,
Series B (RB) (AMBAC)
5.100%, 09/01/03 300 306
Warren County, Municipal
Utilities Authority, Wastewater
Treatment Project (RB)
5.050%, 12/01/04 225 225
Warren County, Pollution Control
Finance Authority, Resource
Recovery Project (RB) (MBIA)
6.150%, 12/01/02 210 225
Warren County, Pollution Control
Finance Authority, Series B
(RB) (MBIA)
5.700%, 12/01/03 300 320
Warren Hills, Regional School
District Authority, Pre-Refunded
@ 100 (COP) (A)
7.100%, 06/15/99 230 243
22
<PAGE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Washington Township (GO)
(MBIA)
5.000%, 02/01/06 $ 250 $ 254
Washington Township, Board of
Education Authority (MBIA)
7.500%, 09/01/00 500 546
Washington Township, Fire
District Authority (GO) (FGIC)
4.700%, 01/01/06 300 299
Wayne Township (GO)
5.450%, 10/01/04 250 257
West Morris, Regional High
School District Authority (COP)
7.450%, 03/15/00 195 204
West Windsor Township (GO)
6.000%, 10/15/05 200 207
Woodbridge Township, Sewer
Utility Authority, Series B (GO)
4.250%, 09/15/01 250 246
Woodbridge Township, Sewer
Utility, Series B (GO)
5.000%, 09/15/10 250 241
--------
123,761
--------
NEW MEXICO--0.3%
State, Educational Assistance
Bonds, Series A (RB) (AMBAC)
6.700%, 04/01/02 200 209
State, Mortgage Finance
Authority (RB)
7.250%, 09/01/22 230 243
--------
452
--------
NEW YORK--0.2%
State, Mortgage Agency, Homeowner
Mortgage Revenue (RB)
5.300%, 10/01/16 250 250
--------
NORTH DAKOTA--0.1%
State, Housing Finance Agency (RB)
6.000%, 07/01/18 210 213
--------
OHIO--0.1%
State, Housing Finance Agency,
Single Family Mortgage (RB)
6.600%, 09/01/01 160 168
--------
OKLAHOMA--0.1%
State, Housing Finance Agency,
Single Family, Class A (RB)
7.997%, 08/01/18 150 157
--------
PENNSYLVANIA--0.7%
Delaware River, Pennsylvania &
New Jersey Port Authority
(RB) (FGIC)
5.400%, 01/01/13 1,000 999
--------
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
PUERTO RICO--4.1%
Puerto Rico, Commonwealth
Aqueduct and Sewer Authority
(RB) (FSA)
9.000%, 07/01/09 $ 505 $ 639
Puerto Rico, Commonwealth
(GO) (FGIC)
6.600%, 07/01/97 275 275
Puerto Rico, Electric Power
Authority (RB) (MBIA)
4.900%, 07/01/05 1,000 1,008
Puerto Rico, Electric Power
Authority, Series V (RB)
5.600%, 07/01/03 80 84
Puerto Rico, Electric Power
Authority, Series Y (RB) (MBIA)
6.500%, 07/01/06 500 562
Puerto Rico, Housing Banking
and Finance Agency, Single
Family Mortgage Project (RB)
7.100%, 12/01/99 220 224
Puerto Rico, Housing Revenue (RB)
7.100%, 06/01/99 65 66
Puerto Rico, Public Buildings
Authority, Educational and
Health Facilities, Series G (RB)
7.750%, 07/01/02 310 316
Puerto Rico, Public Buildings
Authority, Series A (RB) (AMBAC)
4.500%, 07/01/01 200 201
Puerto Rico, Telephone Authority,
Series M (RB)
5.000%, 01/01/02 500 508
5.400%, 01/01/08 260 262
Puerto Rico, Telephone Authority,
Series M (RB) (AMBAC)
5.050%, 01/01/04 590 602
Puerto Rico, Telephone Authority,
Series M (RB) (MBIA)
4.400%, 01/01/99 300 301
Puerto Rico, Telephone
Authority, Series N (RB)
5.100%, 01/01/04 395 402
Puerto Rico, Tourist and
Environmental (RB)
5.250%, 08/01/06 200 205
University of Puerto Rico,
University Revenue Refunding,
Series K, Pre-Refunded
@ 100 (RB) (A)
6.500%, 06/01/98 300 307
--------
5,962
--------
23
<PAGE>
Statement of Net Assets
NEW JERSEY MUNICIPAL SECURITIES FUND (CONTINUED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
RHODE ISLAND--0.7%
State, Housing and Mortgage
Finance, Homeownership
Opportunity Project (RB)
7.250%, 10/01/21 $ 120 $ 126
6.800%, 10/01/23 465 476
State, Housing and Mortgage
Finance, Homeownership
Opportunity Project,
Series 9B1 (RB)
4.950%, 10/01/12 385 379
--------
981
--------
TEXAS--0.7%
Abilene, Higher Education
Authority, Series B (RB)
5.600%, 07/01/04 500 513
Brazos, Higher Education
Authority, Series C1 (RB)
5.700%, 06/01/04 465 481
--------
994
--------
VIRGIN ISLANDS--0.4%
Virgin Islands, Public Finance
Authority, Series A, Pre-Refunded
@ 101 (RB) (A)
7.300%, 10/01/00 500 550
--------
WISCONSIN--0.7%
State, Housing and Economic
Development Authority, Home
Ownership Project (RB)
5.850%, 03/01/18 160 164
6.500%, 09/01/22 790 811
--------
975
--------
Total Municipal Bonds
(Cost $138,153) 141,631
--------
CASH EQUIVALENTS--2.9%
Federated New Jersey Municipal
Cash Trust 3,450 3,450
Goldman Sachs Tax-Free
Money Market 705 705
--------
Total Cash Equivalents
(Cost $4,155) 4,155
--------
Total Investments--99.5%
(Cost $142,308) 145,786
--------
OTHER ASSETS AND LIABILITIES--0.5%
Other Assets and Liabilities, Net 782
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 11,991,270 outstanding shares
of beneficial interest $125,739
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 1,653,182 outstanding shares
of beneficial interest 17,706
Undistributed net investment income 6
Accumulated net realized loss
on investments (361)
Net unrealized appreciation
on investments 3,478
--------
Total Net Assets--100.0% $146,568
========
Net Asset Value, Offering and Redemption
Price Per Share--Class I $ 10.75
========
Net Asset Value and Redemption
Price Per Share--Class A $ 10.72
========
Maximum Offering
Price Per Share--Class A
($10.72 / 97%) $ 11.05
========
(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--FEDERAL GUARANTY INSURANCE COMPANY
FSA--FINANCIAL SECURITY ASSURANCE
MBIA--MUNICIPAL BOND INVESTORS ASSURANCE
24
<PAGE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
INTERMEDIATE-TERM GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS--47.8%
U.S. Treasury Notes
5.125%, 11/30/98 $ 250 $ 247
5.000%, 01/31/99 1,000 985
6.750%, 06/30/99 1,000 1,012
7.500%, 10/31/99 500 514
7.750%, 11/30/99 700 724
7.750%, 12/31/99 500 518
7.125%, 02/29/00 550 562
6.875%, 03/31/00 1,300 1,321
5.875%, 06/30/00 500 495
5.750%, 10/31/00 2,000 1,968
5.625%, 11/30/00 2,000 1,958
6.250%, 04/30/01 700 698
6.625%, 06/30/01 1,000 1,009
6.500%, 08/31/01 2,500 2,511
6.250%, 01/31/02 1,000 994
6.250%, 02/28/02 1,000 994
--------
Total U.S. Treasury Obligations
(Cost $16,427) 16,510
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS--45.7%
Federal Home Loan Bank
6.100%, 02/17/00 1,000 994
5.250%, 09/01/00 500 484
5.500%, 01/23/01 800 775
5.800%, 02/20/01 500 487
7.000%, 12/04/02 1,000 1,003
7.280%, 12/23/02 1,000 1,008
7.385%, 09/11/03 1,000 1,003
Federal Home Loan Mortgage Corporation
6.130%, 08/19/99 500 499
7.195%, 07/30/01 1,000 1,007
7.055%, 08/02/01 1,000 1,009
7.125%, 09/24/03 1,000 1,004
7.100%, 02/20/04 1,000 995
Federal National Mortgage Association
6.900%, 01/22/02 500 500
7.140%, 08/15/02 800 804
7.200%, 08/19/02 500 500
6.250%, 01/13/03 1,000 972
6.720%, 02/25/03 1,000 990
7.370%, 05/14/03 750 757
7.600%, 05/24/06 1,000 1,009
--------
Total U.S. Government Agency Obligations
(Cost $15,847) 15,800
--------
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENTS--5.5%
SEI Liquid Asset Trust--
Government Portfolio $1,320 $ 1,320
SEI Liquid Asset Trust--
Treasury Portfolio 591 591
--------
Total Cash Equivalents
(Cost $1,911) 1,911
--------
Total Investments--99.0%
(Cost $34,185) 34,221
--------
OTHER ASSETS AND LIABILITIES--1.0%
Other Assets and Liabilities, Net 328
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization--no par value) based
on 3,213,830 outstanding shares
of beneficial interest 33,800
Portfolio Shares of Class A (unlimited
authorization--no par value) based
on 190,237 outstanding shares
of beneficial interest 2,189
Distributions in excess of net
investment income (2)
Accumulated net realized loss
on investments (1,474)
Net unrealized appreciation
on investments 36
--------
Total Net Assets--100.0% $ 34,549
========
Net Asset Value, Offering and Redemption
Price Per Share--Class I $ 10.15
========
Net Asset Value and Redemption
Price Per Share--Class A $ 10.14
========
Maximum Offering
Price Per Share--Class A
($10.14 / 96%) $ 10.56
========
PENNSYLVANIA MUNICIPAL SECURITIES FUND
- --------------------------------------------------------------------------------
MUNICIPAL BONDS--97.5%
GUAM--1.7%
Guam, Power Authority
(RB) (AMBAC)
6.000%, 10/01/09 650 691
--------
PENNSYLVANIA--95.8%
Allegheny County, Hospital
Development Authority,
Pittsburgh Mercy Health System
(RB) (AMBAC)
5.500%, 08/15/10 425 430
25
<PAGE>
Statement of Net Assets
PENNSYLVANIA MUNICIPAL SECURITIES FUND (CONTINUED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Allegheny County, Hospital
Development Authority
(RB) (MBIA)
6.875%, 07/01/14 $175 $185
Allegheny County, Pennsylvania
Hospital Development Authority
(RB) (MBIA)
5.600%, 04/01/13 500 506
Allegheny County, Redevelopment
Authority, Home Improvement
(RB)
6.700%, 08/01/99 330 341
Allegheny County, Series C-44
(GO) (FGIC)
5.200%, 06/01/08 150 152
Allentown (GO) (AMBAC)
4.900%, 07/15/02 300 305
Allentown, Water Improvement
Authority (RB) (AMBAC)
4.850%, 07/15/01 150 152
Altoona, Penn Area School
District (GO) (FGIC)
5.350%, 01/15/04 200 206
Annville, Cleona School District
(GO) (FGIC)
5.600%, 03/01/02 365 375
Bangor, Sewer Authority,
Pre-Refunded @ 100 (B)
3.850%, 08/01/99 35 35
Beaver County, Series A
(GO) (FGIC)
4.750%, 10/01/03 100 100
Beaver County, Series A
(GO) (MBIA)
5.600%, 10/01/11 500 514
Bethel Park, School District
(GO) (FGIC)
5.000%, 08/01/04 150 151
Butler County (GO) (FGIC)
6.000%, 07/15/12 300 310
Catasauqua, Area School
Revenue (GO)
8.400%, 02/15/01 210 211
Chester County (GO)
5.500%, 11/15/10 175 180
Chester County, Health and
Education Facilities Authority
Main Line Health Systems,
Series A (RB)
5.400%, 05/15/09 500 495
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Conestoga Valley, School
District (GO) (FGIC)
7.000%, 05/01/06 $250 $270
Dauphin County, School
District (GO) (A)
5.750%, 12/01/97 450 470
Erie County (GO) (FGIC)
5.250%, 09/01/12 95 93
Exeter Township, School
District Revenue (RB) (FGIC)
5.500%, 05/15/03 550 554
Geisinger, Health System
Authority (RB)
7.375%, 07/01/02 200 214
Great Valley, School District,
Pre-Refunded @ 100
(GO) (STAID) (B)
5.400%, 03/01/00 500 512
Harrisburg (GO)
7.125%, 04/01/99 145 152
Harrisburg (RB) (MBIA)
5.600%, 09/15/11 575 581
Hempfield Township, Municipal
Authority, Guaranteed Sewer
Revenue (RB) (FGIC)
5.750%, 09/01/03 500 527
Hermitage, School District
(GO) (FSA)
5.000%, 03/01/07 250 250
Lancaster County, Cocalico School
District (GO) (MBIA)
6.000%, 02/15/15 200 207
Lancaster County, Hospital
Authority, Lancaster General
Hospital Project (RB) (AMBAC)
6.300%, 07/01/05 585 624
Lancaster County, Hospital
Authority, Masonic Homes
Project (RB)
4.900%, 11/15/03 115 115
Lancaster County, Higher Education
Authority, Franklin & Marshall
College (RB) (MBIA)
5.650%, 04/15/10 210 214
Lancaster County, Parking Authority
(RB)
5.750%, 01/01/12 275 288
26
<PAGE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Langhorne Manor Borough,
Higher Education and Health
Authority, Wood Services (RB)
6.400%, 11/15/06 $ 150 $ 163
Lehigh County, General Purpose
Authority, St. Luke's Hospital
(RB) (AMBAC)
4.750%, 11/15/00 100 101
Lycoming County, Hospital
Authority (RB)
5.375%, 11/15/10 500 499
Lycoming County, Pennsylvania
College of Technology
(RB) (AMBAC)
5.000%, 11/01/02 400 406
Manheim Township, Central School
District (GO) (FGIC)
5.300%, 05/15/03 300 310
Manheim Township, School
District, Series A (GO) (FGIC)
4.900%, 06/01/03 500 503
Montgomery County,
Series B (GO)
6.100%, 07/15/00 1,000 1,039
Montoursville, Area School
District (GO) (FGIC)
5.000%, 05/01/03 600 601
Moon Township, Municipal
Authority, Water and Sewer (RB)
3.875%, 12/01/02 121 114
North Allegheny, School District,
Series A (GO) (AMBAC)
5.850%, 11/01/02 150 158
6.000%, 11/01/03 250 265
Northampton County, Higher
Education Authority
(RB) (MBIA)
7.100%, 11/15/09 500 538
Oley Valley, Area School District
(GO) (AMBAC)
4.900%, 05/15/02 600 602
Panther Valley, School District
(GO) (AMBAC)
5.250%, 04/01/01 225 226
Penn Manor, School District,
Series A (GO) (FGIC)
4.700%, 06/01/01 300 301
Philadelphia, Authority For
Industrial Development (RB)
5.500%, 07/01/10 250 253
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Philadelphia, Authority For
Industrial Development, National
Board of Medical Examiners
Project (RB)
6.500%, 05/01/05 $ 325 $ 348
Philadelphia, Gas Works Authority,
Series 14 (RB) (FSA)
6.375%, 07/01/14 750 798
Philadelphia (GO) (MBIA)
5.000%, 05/15/07 500 498
Philadelphia, Hospital Authority,
Community College Project,
Series B (RB) (MBIA)
5.250%, 05/01/00 500 511
Philadelphia, Hospital Authority,
Saint Agnes Medical Center Project,
Series A (RB) (MBIA)
5.000%, 07/01/05 865 865
Philadelphia, Municipal Authority
Revenue, Justice Lease,
Series B, Pre-Refunded @ 102
(RB) (FGIC) (B)
7.100%, 11/15/01 1,000 1,120
Pittsburgh, Series A (GO) (MBIA)
5.000%, 03/01/02 400 408
Pittsburgh, Water and Sewer Authority,
Series A (RB) (FGIC)
4.600%, 09/01/03 270 269
Pittsburgh, Urban Redevelopment
Authority (RB)
5.750%, 10/01/14 100 102
Reading (GO) (AMBAC)
6.000%, 11/15/02 600 603
Schuylkill County, Municipal
Authority, Water Revenue
Bond (RB)
3.900%, 07/01/03 205 197
Scranton-Lackawanna, Health and
Welfare, Authority (RB)
6.625%, 04/15/07 70 71
Solanco, School District,
Series B (GO) (FGIC)
5.250%, 02/01/02 325 334
Southeastern Pennsylvania,
Transportation Authority
Notes (RB)
6.100%, 06/01/02 500 530
State, Brookville Area School
District Project, Series G
(RB) (MBIA)
4.850%, 11/15/02 150 151
27
<PAGE>
Statement of Net Assets
PENNSYLVANIA MUNICIPAL SECURITIES FUND (CONTINUED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
State, Convention Center
(RB) (MBIA)
6.750%, 09/01/19 $1,000 $1,112
State, Convention Center Authority,
Series A (RB) (FSA)
6.250%, 09/01/04 550 598
State, Delaware River Joint
Toll Bridge (RB) (FGIC)
6.000%, 07/01/18 625 637
State, First Series (GO)
6.375%, 09/15/12 300 317
State, Higher Education Authority,
College and University Revenue
RB) (MBIA)
5.000%, 11/01/07 500 500
State, Higher Education
Authority, Series I
(RB) (AMBAC)
5.000%, 06/15/03 100 102
State, Higher Education Authority,
Student Loan, Series A
(RB) (FGIC)
6.800%, 12/01/00 995 1,058
State, Higher Education
Authority, Thomas Jefferson
University, Series A (RB)
6.625%, 08/15/09 600 654
State, Higher Education
Authority, University of
Pennsylvania, Series A (RB)
5.600%, 01/01/10 150 154
State, Higher Education Facilities,
Series G (RB) (AMBAC)
5.875%, 12/15/07 400 418
State, Hospital and Education
Authority (RB) (FSA)
5.625%, 10/01/18 500 497
State, Housing Finance Agency (RB)
5.450%, 10/01/14 500 493
State, Housing Finance
Authority (RB)
5.550%, 04/01/07 100 103
5.600%, 10/01/09 300 306
State, Housing Finance
Authority, Series 49 (RB)
5.600%, 10/01/05 75 77
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
State, Intergovernmental Co-op
Authority (RB) (FGIC)
4.900%, 06/15/03 $ 800 $ 808
State, Public School Building
Authority, Hazleton Area
School District Project
(RB) (FGIC)
6.100%, 03/01/02 500 525
State, School Building Authority,
Delaware County Community
College (RB) (MBIA)
5.200%, 04/01/08 250 251
State, Second Series (GO)
5.500%, 07/01/01 150 156
5.250%, 06/15/09 1,000 1,008
State, Series A (COP) (AMBAC)
5.200%, 07/01/05 500 510
State, Third Series (GO)
6.000%, 11/15/02 1,000 1,067
State, Turnpike Commission
(RB) (MBIA)
5.500%, 12/01/17 1,000 984
State, Turnpike Commission,
Series P (RB) (AMBAC)
5.900%, 12/01/08 1,000 1,053
State, Turnpike Commission,
Series L (AMBAC)
6.250%, 06/01/11 500 532
Swarthmore College (RB)
7.375%, 09/15/18 500 526
Washington, School District,
Series 1993-A (GO) (FGIC)
5.700%, 09/01/06 900 920
Wattsburg, School District
(GO) (AMBAC)
5.700%, 04/01/04 75 78
West Chester, Area School
District (GO) (STAID)
5.400%, 01/15/08 500 509
Wilson, Area School District
(GO) (FGIC)
4.500%, 02/15/00 445 446
York County (GO) (FGIC)
5.600%, 10/01/02 345 362
--------
39,364
--------
Total Municipal Bonds
(Cost $39,393) 40,055
--------
28
<PAGE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENT--1.6%
PNC Tax-Free Money
Market Fund $653 $ 653
--------
Total Cash Equivalent
(Cost $653) 653
--------
Total Investments--99.1%
(Cost $40,046) 40,708
--------
OTHER ASSETS AND LIABILITIES,--0.9%
Other Assets and Liabilities, Net 369
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization--no par value) based
on 3,997,531 outstanding shares
of beneficial interest 40,095
Portfolio Shares of Class A (unlimited
authorization--no par value) based
on 33,636 outstanding shares
of beneficial interest 343
Undistributed net investment income 1
Accumulated net realized loss
on investments (25)
Net unrealized appreciation
on investments 663
--------
Total Net Assets--100.0% $ 41,077
========
Net Asset Value, Offering and Redemption
Price Per Share--Class I $ 10.19
========
Net Asset Value and Redemption
Price Per Share--Class A $ 10.16
========
Maximum Offering
Price Per Share--Class A
($10.16 / 97%) $ 10.47
========
(A) FLOATING RATE INSTRUMENT WITH DEMAND FEATURES. THE RATE REFLECTED ON THE
STATEMENT OF NET ASSETS IS THE RATE IN EFFECT ON JUNE 30, 1997. THE DATE
SHOWN IS THE LONGER OF THE RESET DATE OR THE DEMAND DATE.
(B) PRE-REFUNDED SECURITY--THE MATURITY DATE SHOWN IS THE PRE-REFUNDED 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 SECURITY ASSURANCE
MBIA--MUNICIPAL BOND INVESTORS ASSURANCE
STAID--STATE AID WITHHOLDING
GNMA FUND
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. AGENCY MORTGAGE-BACKED BONDS--97.2%
Government National Mortgage Association
8.000%, 05/15/23 $ 323 $ 331
7.000%, 06/15/23 125 123
6.000%, 11/15/23 884 822
6.500%, 11/15/23 774 741
6.000%, 12/15/23 1,274 1,183
6.500%, 12/15/23 400 383
7.000%, 12/15/23 797 783
6.000%, 01/20/24 830 767
8.000%, 08/15/24 422 432
8.000%, 09/15/24 1,174 1,200
7.500%, 08/15/25 292 293
--------
Total U.S. Agency
Mortgage-Backed Bonds
(Cost $7,162) 7,058
--------
CASH EQUIVALENT--2.9%
SEI Liquid Asset Trust--
Government Portfolio 208 208
--------
Total Cash Equivalent
(Cost $208) 208
--------
Total Investments--100.1%
(Cost $7,369) 7,266
--------
OTHER ASSETS AND LIABILITIES--(0.1%)
Other Assets and Liabilities, Net (6)
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization--no par value) based
on 633,995 outstanding shares
of beneficial interest 6,854
Portfolio Shares of Class A (unlimited
authorization--no par value) based
on 118,070 outstanding shares
of beneficial interest 1,333
Accumulated net realized loss
on investments (822)
Net unrealized depreciation
on investments (105)
--------
Total Net Assets--100.0% 7,260
========
Net Asset Value, Offering and Redemption
Price Per Share--Class I $ 9.66
========
Net Asset Value and Redemption
Price Per Share--Class A $ 9.64
========
Maximum Offering
Price Per Share--Class A ($9.64 / 97%) $ 9.94
========
29
<PAGE>
Statement of Net Assets
EQUITY GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--89.1%
BANKS--2.6%
First Union 21,600 $ 1,998
Northern Trust 60,200 2,912
--------
4,910
--------
BEAUTY PRODUCTS--2.2%
Procter & Gamble 29,200 4,125
--------
CHEMICALS--1.5%
Monsanto 67,900 2,924
--------
COMPUTERS, SOFTWARE & SERVICES--14.8%
Computer Associates International 71,850 4,001
Computer Sciences* 41,600 3,000
Dell Computer* 24,100 2,830
Electronic Data Systems 89,900 3,686
EMC* 70,200 2,738
Hewlett Packard 69,900 3,914
Microsoft* 30,800 3,892
Sungard Data Systems* 86,500 4,022
--------
28,083
--------
DRUGS--7.1%
Merck 63,100 6,531
Pfizer 57,300 6,847
--------
13,378
--------
ENTERTAINMENT--2.5%
Walt Disney 58,500 4,695
--------
FINANCIAL SERVICES--4.0%
FHLMC 63,100 2,169
Franklin Resources 44,300 3,215
MBNA 60,275 2,208
--------
7,592
--------
FOOD, BEVERAGE & TOBACCO--1.8%
Coca Cola 48,500 3,383
--------
GAS/NATURAL GAS--1.0%
Enron 46,700 1,906
--------
HOUSEHOLD PRODUCTS--2.8%
Illinois Tool Works 104,600 5,223
--------
INSURANCE--5.4%
American International Group 27,250 4,071
Conseco 50,660 1,874
SunAmerica 40,500 1,974
Travelers 36,966 2,331
--------
10,250
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
LEISURE PRODUCTS--2.4%
Mattel 137,300 $ 4,651
--------
MACHINERY--3.0%
General Electric 88,100 5,760
--------
MARINE TRANSPORTATION--1.6%
Carnival, Class A 74,200 3,061
--------
MEDICAL PRODUCTS & SERVICES--3.1%
Boston Scientific* 36,900 2,267
Healthsouth Rehabilitation* 147,500 3,678
--------
5,945
--------
MISCELLANEOUS BUSINESS SERVICES--11.8%
3Com* 62,800 2,826
Automatic Data Processing 101,300 4,761
Cisco Systems* 47,800 3,209
First Data 108,100 4,750
Oracle Systems* 101,050 5,090
Parametric Technology* 42,090 1,792
--------
22,428
--------
MISCELLANEOUS CONSUMER SERVICES--3.9%
Accustaff* 126,200 2,989
Service International 132,600 4,359
--------
7,348
--------
RUBBER & PLASTIC--1.1%
Nike 34,600 2,020
--------
SEMI-CONDUCTORS/INSTRUMENTS--5.0%
Intel 21,900 3,106
LSI Logic* 74,200 2,374
Xilinx* 81,500 3,999
--------
9,479
--------
SPECIALTY CONSTRUCTION--2.7%
Ericsson (LM) ADR* 129,210 5,088
--------
STEEL & STEEL WORKS--1.6%
Engelhard 141,150 2,955
--------
TELEPHONES & TELECOMMUNICATION--1.7%
Worldcom* 103,630 3,316
--------
WHOLESALE--5.5%
Gillette 50,200 4,756
Johnson & Johnson 87,200 5,614
--------
10,370
--------
Total Common Stocks
(Cost $136,992) 168,890
--------
30
<PAGE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENTS--8.3%
Aim Short-Term Prime Obligation $5,320 $ 5,320
Vontobel Europacific Fund 507 10,361
--------
Total Cash Equivalents
(Cost $13,334) 15,681
--------
TREASURY BILL--0.8%
U.S. Treasury Bill (A)
4.400%, 07/03/97 1,500 1,499
--------
Total Treasury Bill
(Cost $1,500) $ 1,499
========
Total Investments--98.2%
(Cost $151,826) 186,070
--------
OTHER ASSETS AND LIABILITIES--1.8%
Other Assets and Liabilities, Net 3,449
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization--no par value) based
on 17,476,951 outstanding shares
of beneficial interest 141,659
Portfolio Shares of Class A (unlimited
authorization--no par value) based
on 8,830 outstanding shares
of beneficial interest 92
Portfolio Shares of Class B (unlimited
authorization--no par value) based
on 2,427 outstanding shares
of beneficial interest 25
Distributions in excess of net
investment income (3)
Accumulated net realized gain
on investments 13,502
Net unrealized appreciation
on investments 34,244
--------
Total Net Assets--100.0% $189,519
========
Net Asset Value, Offering and Redemption
Price Per Share-- Class I $ 10.84
========
Net Asset Value and Redemption
Price Per Share -- Class A $ 10.86
========
Maximum Offering
Price Per Share -- Class A
($10.86 / 94.5%) $ 11.49
========
Net Asset Value and Offering
Price Per Share-- Class B (1) $ 10.83
========
* NON-INCOME PRODUCING SECURITY
(1) CLASS B HAS A CONTINGENT DEFERRED SALES CHARGE.
(A) THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS REPRESENTS THE SECURITY'S
DISCOUNT RATE AT PURCHASE.
ADR--AMERICAN DEPOSITORY RECEIPT
EQUITY VALUE FUND
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS--94.4%
AIRCRAFT--3.5%
Boeing 80,000 $ 4,245
United Technologies 55,000 4,565
--------
8,810
--------
BANKS--6.4%
Bank of New York 90,000 3,915
Citicorp 35,000 4,220
J.P. Morgan 35,000 3,653
Norwest 75,000 4,219
--------
16,007
--------
CHEMICALS--1.9%
E.I. DuPont de Nemours 76,000 4,778
--------
COMPUTERS & SERVICES--5.4%
Compaq Computer* 40,000 3,970
Hewlett Packard 80,000 4,480
Microsoft* 40,000 5,055
--------
13,505
--------
CONTAINERS & PACKAGING--1.5%
Crown Cork & Seal 70,000 3,741
--------
DRUGS--10.3%
Bristol-Myers Squibb 60,000 4,860
Glaxo Wellcome PLC (ADR) 110,000 4,599
Merck 55,000 5,692
Pfizer 45,000 5,377
Pharmacia & Upjohn 5,000 174
SmithKline Beecham 55,000 5,039
--------
25,741
--------
ELECTRICAL & ELECTRONIC PRODUCTS--3.8%
Emerson Electric 80,000 4,405
General Electric 80,000 5,230
--------
9,635
--------
ELECTRICAL UTILITIES--1.3%
FPL Group 70,000 3,224
--------
FINANCIAL SERVICES--3.5%
American Express 60,000 4,470
Federal National Mortgage
Association 100,000 4,362
--------
8,832
--------
FOOD, BEVERAGE & TOBACCO--7.0%
Anheuser Busch 100,000 4,194
CPC International 55,000 5,077
PepsiCo 110,000 4,132
Sara Lee 100,000 4,163
--------
17,566
--------
31
<PAGE>
Statement of Net Assets
EQUITY VALUE FUND (CONTINUED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
GAS/NATURAL GAS--2.8%
Consolidated Natural Gas 70,000 $ 3,767
Enron 80,000 3,265
--------
7,032
--------
GLASS PRODUCTS--2.0%
Corning 90,000 5,006
--------
HOUSEHOLD PRODUCTS--3.5%
Colgate-Palmolive 70,000 4,568
Procter & Gamble 30,000 4,238
--------
8,806
--------
INSURANCE--3.9%
American International Group 35,000 5,228
CIGNA 25,000 4,438
--------
9,666
--------
LEISURE PRODUCTS--2.0%
Mattel 150,000 5,081
--------
MACHINERY--3.7%
Deere 85,000 4,664
Tenneco 100,000 4,519
--------
9,183
--------
MANUFACTURING--1.6%
Minnesota Mining & Manufacturing 40,000 4,080
--------
PAPER & PACKAGING--0.7%
Ikon Office Solutions 70,000 1,746
--------
PAPER & PAPER PRODUCTS--0.8%
Unisource Worldwide 120,000 1,920
--------
PETROLEUM & FUEL PRODUCTS--1.3%
Union Pacific Resources Group 130,000 3,234
--------
PETROLEUM REFINING--7.6%
Amoco 45,000 3,912
Exxon 80,000 4,920
Mobil 70,000 4,891
Royal Dutch Petroleum (ADR) 100,000 5,438
--------
19,161
--------
PRINTING & PUBLISHING--3.9%
Gannett 50,000 4,938
Time Warner 100,000 4,825
--------
9,763
--------
RAILROADS--3.4%
Burlington Northern Santa Fe 45,000 4,044
Union Pacific 65,000 4,583
--------
8,627
--------
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
RETAIL--1.7%
Sears Roebuck 80,000 $ 4,300
--------
SEMI-CONDUCTORS/INSTRUMENTS--1.4%
Intel 25,000 3,545
--------
STEEL & STEEL WORKS--1.3%
Engelhard 150,000 3,141
--------
TELEPHONES & TELECOMMUNICATION--8.1%
Ameritech 60,000 4,076
AT&T 90,000 3,156
Bellsouth 80,000 3,710
Lucent Technologies 70,000 5,044
SBC Communications 70,000 4,331
--------
20,317
--------
Total Common Stocks
(Cost $173,399) 236,447
--------
CASH EQUIVALENTS--5.8%
SEI Liquid Asset Trust--
Government Portfolio $11,121 11,121
SEI Liquid Asset Trust--
Treasury Portfolio 3,499 3,499
--------
Total Cash Equivalents
(Cost $14,620) 14,620
--------
Total Investments--100.2%
(Cost $188,019) 251,067
--------
OTHER ASSETS AND LIABILITIES,--(0.2%)
Other Assets and Liabilities, Net (567)
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization--no par value) based
on 15,240,419 outstanding shares
of beneficial interest 161,104
Portfolio Shares of Class A (unlimited
authorization--no par value) based
on 815,451 outstanding shares
of beneficial interest 9,864
Portfolio Shares of Class B (unlimited
authorization--no par value) based
on 57,824 outstanding shares
of beneficial interest 877
Distributions in excess of net
investment income (3)
Accumulated net realized gain
on investments 15,610
Net unrealized appreciation
on investments 63,048
--------
Total Net Assets--100.0% $250,500
========
32
<PAGE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Class I $ 15.55
========
Net Asset Value and Redemption
Price Per Share -- Class A $ 15.55
========
Maximum Offering
Price Per Share -- Class A
($15.55 / 94.5%) $ 16.46
========
Net Asset Value and Offering
Price Per Share-- Class B (1) $ 15.54
========
* NON-INCOME PRODUCING SECURITY
(1) CLASS B HAS A CONTINGENT DEFERRED SALES CHARGE.
ADR--AMERICAN DEPOSITORY RECEIPT
EQUITY INCOME FUND
- --------------------------------------------------------------------------------
COMMON STOCKS--84.8%
AIRCRAFT--2.5%
Textron 24,000 $ 1,593
United Technologies 20,000 1,660
--------
3,253
--------
AUTOMOTIVE--0.8%
Chrysler 30,000 984
--------
BANKS--9.2%
Bank of New York 75,000 3,262
Bankers Trust New York 18,000 1,566
Chase Manhattan Bank 14,000 1,359
J.P. Morgan 20,000 2,087
NationsBank 30,000 1,935
Norwest 30,000 1,687
--------
11,896
--------
CHEMICALS--2.3%
E.I. DuPont de Nemours 28,000 1,760
Imperial Chemical Industries PLC 22,000 1,251
--------
3,011
--------
DRUGS--11.3%
American Home Products 31,000 2,371
Bristol-Myers Squibb 43,000 3,483
Glaxo Wellcome PLC (ADR) 45,000 1,882
Merck 20,000 2,070
Pfizer 10,000 1,195
Pharmacia & Upjohn 25,000 869
SmithKline Beecham 30,000 2,749
--------
14,619
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
ELECTRICAL & ELECTRONIC PRODUCTS--6.4%
Emerson Electric 44,000 $ 2,423
General Electric 54,000 3,530
Thomas & Betts 45,000 2,365
--------
8,318
--------
ELECTRICAL UTILITIES--2.1%
Long Island Lighting 25,000 575
Public Service Company of Colorado 30,000 1,245
Southern 40,000 875
--------
2,695
--------
ENVIRONMENTAL SERVICES--0.8%
Browning-Ferris Industries 33,000 1,097
--------
FINANCIAL SERVICES--3.8%
Beneficial 20,000 1,421
Cali Realty 20,000 680
Healthcare Realty Trust 20,000 557
Hospitality Properties Trust 23,000 704
Liberty Property Trust 9,000 224
Storage Trust Realty 25,000 663
United Dominion Realty Trust 50,000 709
--------
4,958
--------
FOOD, BEVERAGE & TOBACCO--2.4%
CPC International 18,000 1,662
Sara Lee 35,000 1,457
--------
3,119
--------
GAS/NATURAL GAS--5.9%
Consolidated Natural Gas 50,000 2,691
Sonat 37,000 1,896
Trans Canada Pipeline 85,000 1,711
Williams 30,000 1,313
--------
7,611
--------
GLASS PRODUCTS--2.7%
Corning 35,000 1,947
PPG Industries 26,000 1,511
--------
3,458
--------
HOUSEHOLD PRODUCTS--2.8%
Colgate-Palmolive 32,000 2,088
Hubbell Class B 35,000 1,540
--------
3,628
--------
INSURANCE--2.6%
Hartford Financial Services Group 12,000 993
Marsh & McLennan 20,000 1,428
TIG Holdings 30,000 938
--------
3,359
--------
33
<PAGE>
Statement of Net Assets
EQUITY INCOME FUND (CONTINUED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
LUMBER & WOOD PRODUCTS--1.0%
Georgia-Pacific 16,000 $ 1,366
--------
MACHINERY--1.8%
Pall 30,000 698
Tenneco 35,000 1,582
--------
2,280
--------
MEDICAL PRODUCTS & SERVICES--1.3%
Baxter International 33,000 1,724
--------
PAPER & PAPER PRODUCTS--2.6%
Kimberly Clark 55,000 2,736
Unisource Worldwide 40,000 640
--------
3,376
--------
PETROLEUM & FUEL PRODUCTS--1.4%
Atlantic Richfield 26,000 1,833
--------
PETROLEUM REFINING--8.5%
Exxon 58,000 3,567
Mobil 42,000 2,935
Royal Dutch Petroleum (ADR) 64,000 3,480
Texaco 9,000 979
--------
10,961
--------
PRINTING & PUBLISHING--2.3%
Hollinger International 70,000 783
McGraw-Hill 38,000 2,235
--------
3,018
--------
RAILROADS--2.9%
Burlington Northern Santa Fe 14,000 1,258
Union Pacific 35,000 2,468
--------
3,726
--------
RETAIL--1.3%
J.C. Penney 33,000 1,722
--------
RUBBER & PLASTIC--0.7%
Rubbermaid 30,000 893
--------
TELEPHONES & TELECOMMUNICATION--5.4%
AT&T 28,000 982
Bell Atlantic 25,000 1,897
Bellsouth 45,000 2,087
GTE 45,000 1,974
--------
6,940
--------
Total Common Stocks
(Cost $77,146) 109,845
--------
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
PREFERRED STOCKS--4.8%
Airtouch Communications 22,000 $ 1,056
Conseco Financial Trust 27,000 700
Crown Cork and Seal 20,000 1,010
Ikon Office Products 11,000 708
Mattel 50,000 706
Sun 30,000 911
SunAmerica 25,000 1,091
--------
Total Preferred Stocks
(Cost $5,911) 6,182
--------
CONVERTIBLE BONDS--0.8%
Hilton Hotels
5.000%, 05/15/06 200 213
Platinum Technology
6.750%, 11/15/01 100 121
U.S. Filter
4.500%, 12/15/01 300 291
USA Waste Services
4.000%, 02/01/02 400 430
--------
Total Convertible Bonds
(Cost $1,014) 1,055
--------
U.S. TREASURY OBLIGATION--0.8%
U.S. Treasury Note
5.875%, 02/28/99 1,000 998
--------
Total U.S. Treasury Obligation
(Cost $995) 998
--------
CASH EQUIVALENTS--9.3%
SEI Liquid Asset Trust--
Government Portfolio $6,215 6,215
SEI Liquid Asset Trust--
Treasury Portfolio 5,774 5,774
--------
Total Cash Equivalents
(Cost $11,989) 11,989
--------
Total Investments--100.5%
(Cost $97,055) 130,069
--------
OTHER ASSETS AND LIABILITIES--(0.5%)
Other Assets and Liabilities, Net (623)
--------
34
<PAGE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization--no par value) based
on 7,455,457 outstanding shares
of beneficial interest $ 75,992
Portfolio Shares of Class A (unlimited
authorization--no par value) based
on 978,328 outstanding shares
of beneficial interest 11,659
Portfolio Shares of Class B (unlimited
authorization--no par value) based
on 76,340 outstanding shares
of beneficial interest 1,139
Distributions in excess of net
investment income (1)
Accumulated net realized gain
on investments 7,643
Net unrealized appreciation
on investments 33,014
--------
Total Net Assets--100.0% $129,446
========
Net Asset Value, Offering and Redemption
Price Per Share -- Class I $ 15.21
========
Net Asset Value and Redemption
Price Per Share -- Class A $ 15.24
========
Maximum Offering
Price Per Share -- Class A
($15.24 / 94.5%) $ 16.13
========
Net Asset Value and Offering
Price Per Share -- Class B (1) $ 15.20
========
(1) CLASS B HAS A CONTINGENT DEFERRED SALES CHARGE.
ADR--AMERICAN DEPOSITORY RECEIPT
MID CAP FUND
- --------------------------------------------------------------------------------
COMMON STOCKS--96.0%
APPAREL/TEXTILES--2.0%
Albany International 45,000 1,012
--------
AUTOMOTIVE--6.8%
Cooper* 45,000 1,046
Dial 25,000 391
Federal Signal 45,000 1,131
Regal Beloit 35,500 941
--------
3,509
--------
BANKS--10.1%
Associated Bancorp 18,000 711
First Bank of Puerto Rico 25,000 647
First Tennessee National 30,000 1,440
Merchantile Bancorp 12,000 729
Wilmington Trust 20,000 915
Zions Bancorp 20,000 752
--------
5,194
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
BUILDING & CONSTRUCTION--2.1%
Jacobs Engineering Group* 40,000 $ 1,075
--------
CHEMICALS--6.4%
Cytec Industries* 35,000 1,308
Olin 18,000 703
Praxair 22,500 1,260
--------
3,271
--------
COMMUNICATIONS EQUIPMENT--3.0%
ADC Telecommunications* 17,000 567
Ascend Communications* 12,000 472
Qualcomm* 10,000 509
--------
1,548
--------
COMPUTERS & SERVICES--2.0%
Gateway 2000* 15,000 487
America Online* 10,000 556
--------
1,043
--------
DRUGS--2.9%
Medpartners* 25,000 541
Watson Pharmaceuticals* 22,500 951
--------
1,492
--------
ELECTRICAL TECHNOLOGY--0.6%
Sensormatic Electronics 25,000 322
--------
ENERGY & POWER--1.5%
Calenergy* 20,000 760
--------
FINANCIAL SERVICES--2.1%
Franklin Resources 15,000 1,088
--------
HOUSEHOLD PRODUCTS--3.1%
Danaher 12,000 610
Valspar 32,500 963
--------
1,573
--------
INSURANCE--5.9%
Amerin* 25,000 606
Cincinnati Financial 15,000 1,185
Delphi Financial Group* 18,360 707
SunAmerica 11,000 536
--------
3,034
--------
MACHINERY--3.4%
Baldor Electric 14,000 414
Lindsay Manufacturing 41,250 1,351
--------
1,765
--------
MEDICAL PRODUCTS & SERVICES--3.2%
Biomet* 15,000 279
Genesis Health Ventures* 20,000 675
Maxicare Health Plans* 30,000 671
--------
1,625
--------
35
<PAGE>
Statement of Net Assets
MID CAP FUND (CONTINUED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
MISCELLANEOUS BUSINESS SERVICES--8.5%
Adaptec* 12,000 $ 417
CUC International* 20,000 516
Electronic Arts* 20,000 672
Informix* 27,500 247
McAfee Associates* 10,000 631
Parametric Technology* 10,000 426
Sungard Data Systems* 10,000 465
U.S. Filter* 15,000 409
Whitman 22,500 570
--------
4,353
--------
MISCELLANEOUS CONSUMER SERVICES--2.2%
Accustaff* 20,000 474
Stewart Enterprises Class A 15,000 630
--------
1,104
--------
MISCELLANEOUS MANUFACTURING--1.4%
Wolverine Tube* 25,000 697
--------
OFFICE FURNITURE & FIXTURES--1.1%
Lear* 12,500 555
--------
PAPER & PAPER PRODUCTS--3.5%
Bemis 32,500 1,410
Wausau Paper Mills 20,000 377
--------
1,787
--------
PETROLEUM REFINING--2.4%
Saga Petroleum Class B 70,000 1,225
--------
PROFESSIONAL SERVICES--1.3%
Paychex 18,000 684
--------
RETAIL--7.5%
Bed Bath and Beyond* 20,000 607
Boston Chicken* 25,000 350
Intimate Brands 20,000 420
Piercing Pagoda * 45,000 1,131
Rainforest Cafe* 20,000 507
Starbucks* 5,000 195
Tech Data* 20,000 629
--------
3,839
--------
RUBBER & PLASTIC--1.5%
Sonoco Products 25,000 761
--------
SEMI-CONDUCTORS/INSTRUMENTS--3.0%
American Power Conversion* 20,000 380
Analog Devices* 25,000 664
Xilinx* 10,000 491
--------
1,535
--------
SPECIALTY MACHINERY--0.9%
American Standard Companies* 10,000 447
--------
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
STEEL & STEEL WORKS--1.0%
Schnitzer Steel Industries Class A 17,500 $ 521
--------
TELEPHONES & TELECOMMUNICATION--1.3%
Aliant Communications 35,000 682
--------
TESTING LABORATORIES--1.0%
Chiron* 25,000 522
--------
TRANSPORTATION SERVICES--1.1%
GATX 10,000 578
--------
TRUCKING--0.9%
Kenan Transport 24,479 483
--------
WHOLESALE--2.3%
Cardinal Health 7,000 401
Chronimed* 15,000 127
Neopath* 35,000 665
--------
1,193
--------
Total Common Stocks
(Cost $37,869) 49,277
--------
CASH EQUIVALENTS--3.7%
SEI Liquid Asset Trust --
Government Portfolio $ 1,528 1,528
SEI Liquid Asset Trust--
Treasury Portfolio 385 385
--------
Total Cash Equivalents
(Cost $1,913) 1,913
========
Total Investments--99.7%
(Cost $39,782) 51,190
--------
OTHER ASSETS AND LIABILITIES--0.3%
Other Assets and Liabilities, Net 147
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization--no par value) based
on 3,288,069 outstanding shares
of beneficial interest 34,160
Portfolio Shares of Class A (unlimited
authorization--no par value) based
on 353,785 outstanding shares
of beneficial interest 3,863
Distribution in excess of net
investment income (1)
Accumulated net realized gain
on investments 1,988
Net unrealized appreciation
on investments 11,327
--------
Total Net Assets--100.0% $ 51,337
========
36
<PAGE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Class I $ 14.10
========
Net Asset Value and Redemption
Price Per Share -- Class A $ 14.07
========
Maximum Offering
Price Per Share -- Class A
($14.07 / 96%) $ 14.66
========
* NON-INCOME PRODUCING SECURITY
BALANCED FUND
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--16.6%
Federal Home Loan Bank
8.125%, 11/07/11 $ 500 500
Federal Home Loan Mortgage Corporation
6.550%, 01/04/00 500 502
6.704%, 01/09/07 500 497
Federal National Mortgage Association
7.680%, 12/01/97 300 303
8.350%, 11/10/99 500 523
6.100%, 02/10/00 500 497
5.800%, 12/10/03 500 479
8.625%, 11/10/04 500 518
8.550%, 12/10/04 750 756
8.000%, 04/13/05 500 506
7.760%, 08/02/06 500 508
--------
Total U.S. Government Agency Obligations
(Cost $5,550) 5,589
--------
U.S. TREASURY OBLIGATIONS--11.3%
U.S. Treasury Notes
6.250%, 03/31/99 1,000 1,003
7.000%, 04/15/99 500 508
6.375%, 04/30/99 1,000 1,005
7.750%, 11/30/99 500 517
5.875%, 06/30/00 250 248
7.500%, 11/15/01 500 521
--------
Total U.S. Treasury Obligations
(Cost $3,753) 3,802
--------
CORPORATE BONDS--7.6%
BANKS--1.4%
First Chicago NBD Bancorp
7.125%, 05/15/07 500 497
--------
FINANCIAL SERVICES--1.5%
American Express Credit
6.750%, 06/01/01 500 501
--------
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
UTILITIES--1.5%
Southern California Edison
6.750%, 01/15/00 500 $ 502
--------
INDUSTRIAL--3.2%
Browning-Ferris
6.375%, 01/15/08 500 473
E.I. DuPont de Nemours
6.750%, 10/15/02 500 499
Philip Morris
9.250%, 02/15/00 100 106
--------
1,078
--------
Total Corporate Bonds
(Cost $2,579) 2,578
--------
COMMON STOCKS--63.8%
AIRCRAFT--2.2%
Boeing 6,000 318
United Technologies 5,000 415
--------
733
--------
BANKS--5.2%
Bank of New York 9,500 413
Citicorp 4,000 482
J.P. Morgan 4,000 417
Norwest 8,000 450
--------
1,762
--------
CHEMICALS--2.6%
E.I. DuPont de Nemours 8,000 503
Monsanto 9,000 388
--------
891
--------
COMPUTERS & SERVICES--6.1%
3Com* 7,000 315
Cisco Systems* 6,500 436
Compaq Computer* 4,000 397
Hewlett Packard 7,000 392
Microsoft* 4,000 505
--------
2,045
--------
CONTAINERS & PACKAGING--1.0%
Crown Cork & Seal 6,000 321
--------
DRUGS--6.5%
Bristol-Myers Squibb 6,000 486
Glaxo PLC (ADR) 9,600 401
Merck 4,000 414
Pfizer 4,300 514
SmithKline Beecham 4,000 366
--------
2,181
--------
37
<PAGE>
Statement of Net Assets
BALANCED FUND (CONTINUED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
ELECTRICAL & ELECTRONIC PRODUCTS--2.1%
Emerson Electric 6,000 $ 330
General Electric 6,000 392
--------
722
--------
FINANCIAL SERVICES--3.8%
American Express 6,000 447
Federal National Mortgage
Association 9,000 393
Morgan Stanley, Dean Witter,
Discover 10,000 431
--------
1,271
--------
FOOD, BEVERAGE & TOBACCO--4.4%
Anheuser Busch 8,000 335
CPC International 4,000 369
PepsiCo 12,000 451
Sara Lee 8,000 333
--------
1,488
--------
GAS/NATURAL GAS--3.1%
Consolidated Natural Gas 4,300 231
Enron 11,000 449
Williams 8,000 350
--------
1,030
--------
GLASS PRODUCTS--1.8%
Corning 11,000 612
--------
HOUSEHOLD PRODUCTS--2.4%
Colgate-Palmolive 6,000 392
Danaher 8,000 407
--------
799
--------
INSURANCE--1.3%
American International Group 3,000 448
--------
LEISURE PRODUCTS--1.3%
Mattel 13,000 440
--------
MACHINERY--2.1%
Deere 6,500 357
Tenneco 7,500 339
--------
696
--------
PETROLEUM REFINING--5.5%
Amoco 5,000 435
Exxon 7,000 431
Mobil 8,000 559
Royal Dutch Petroleum (ADR) 8,000 435
--------
1,860
--------
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
PRINTING & PUBLISHING--1.9%
Gannett 4,000 $ 395
Time Warner 5,000 241
--------
636
--------
RAILROADS--2.7%
Burlington Northern Santa Fe 5,500 494
Union Pacific 6,000 423
--------
917
--------
RETAIL--0.9%
Sears Roebuck 5,500 296
--------
SEMI-CONDUCTORS/INSTRUMENTS--1.3%
Intel 3,000 425
--------
STEEL & STEEL WORKS--0.7%
Engelhard 12,000 251
--------
TELEPHONES & TELECOMMUNICATION--5.1%
Ameritech 4,500 306
Bellsouth 6,000 278
Lucent Technologies 6,000 432
SBC Communications 4,000 248
Worldcom* 14,000 448
--------
1,712
--------
Total Common Stocks
(Cost $14,853) 21,536
--------
CASH EQUIVALENTS--0.8%
SEI Liquid Asset Trust--
Government Portfolio $196 196
SEI Liquid Asset Trust--
Treasury Portfolio 80 80
--------
Total Cash Equivalents
(Cost $276) 276
--------
Total Investments--100.1%
(Cost $27,011) 33,781
--------
OTHER ASSETS AND LIABILITIES--(0.1%)
Other Assets and Liabilities, Net (19)
--------
38
<PAGE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization--no par value) based
on 1,873,666 outstanding shares
of beneficial interest $ 17,466
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 773,413 outstanding shares
of beneficial interest 8,277
Portfolio Shares of Class B (unlimited
authorization -- no par value) based
on 40,701 outstanding shares
of beneficial interest 504
Undistributed net investment income 1
Accumulated net realized gain
on investments 744
Net unrealized appreciation
on investments 6,770
--------
Total Net Assets -- 100.0% $ 33,762
========
Net Asset Value, Offering and Redemption
Price Per Share -- Class I $ 12.56
========
Net Asset Value and Redemption
Price Per Share -- Class A $ 12.58
========
Maximum Offering
Price Per Share -- Class A
($12.58 / 94.5%) $ 13.31
========
Net Asset Value and Offering
Price Per Share-- Class B (1) $ 12.54
========
* NON-INCOME PRODUCING SECURITY
(1) CLASS B HAS A CONTINGENT DEFERRED SALES CHARGE.
ADR--AMERICAN DEPOSITORY RECEIPT
INTERNATIONAL GROWTH FUND
- --------------------------------------------------------------------------------
FOREIGN COMMON STOCKS--91.9%
ARGENTINA--0.9%
Banco de Galacia 10,500 70
Quilmes Industrial (ADR) 6,600 77
--------
147
--------
AUSTRALIA--3.8%
Amcor 9,100 60
Boral 47,380 149
Broken Hill Proprietary 11,208 165
Crown Limited 32,748 53
Goodman Fielder 80,837 119
Pioneer International 30,000 116
--------
662
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
AUSTRIA--0.7%
OMV 1,000 $ 128
--------
BELGIUM--0.6%
Credit Communal de Belgique 871 94
--------
BRAZIL--1.2%
Aracruz Cellulose (ADR) 1,800 37
Electrobras (ADR) 2,150 60
Electrobras 40,000 23
Telecomunicacoes Brasileiras 670,000 91
--------
211
--------
CANADA--2.3%
Alcan Aluminum Ltd. 1,800 61
Canada Pacific (ADR) 7,500 213
Canadian Imperial Bank 2,600 65
Canwest Global Communication
(ADR) 4,300 64
--------
403
--------
CHILE--1.0%
Embotelladora Andina Series A (ADR) 1,200 26
Embotelladora Andina Series B (ADR) 2,400 50
Enersis (ADR) 2,500 89
--------
165
--------
DENMARK--2.1%
Tele Denmark (ADR) 4,050 106
Unidanmark Series A 4,550 256
--------
362
--------
FINLAND--2.2%
Kesko Oy Akt 6,400 90
Metsa Serla Series B 10,500 86
Nokia Series A (ADR) 1,700 125
Rauma Oy 3,300 76
--------
377
--------
FRANCE--8.8%
Assurances Generales de France 5,330 170
Banque National Paris Series A 4,150 171
Cie de Saint Gobain 600 87
Credit Commerce France 2,510 106
Havas 1,765 127
Peugeot 970 94
Remy Cointreau 3,000 72
Rhone Poulenc 4,521 184
Societe Generale 1,490 166
Societe Nationale Elf Aquitaine 1,900 205
Total Series B 1,329 134
--------
1,516
--------
39
<PAGE>
Statement of Net Assets
INTERNATIONAL GROWTH FUND (CONTINUED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
GERMANY--3.9%
Bayer 3,400 $ 131
Degussa 1,450 77
Karstadt 390 141
Lufthansa 5,600 108
Mannesmann 150 67
Metallgesellschaft 7,550 156
--------
680
--------
HONG KONG--3.2%
Hutchison Whampoa 23,000 199
Hysan Development 22,000 65
New World Development 4,000 24
Sung Hung Kai Properties 8,100 98
Swire Pacific Series A 15,000 135
Tingyi (Cayman Island) 140,000 35
--------
556
--------
INDIA--0.3%
Ranbaxy Laboratories (GDR) 1,000 24
State Bank of India (GDR) 1,300 34
--------
58
--------
INDONESIA--1.1%
Jaya Real Property 30,000 40
Kalbe Farma 62,000 83
PT Indosat (ADR) 2,100 63
--------
186
--------
IRELAND--0.2%
Allied Irish Bank 3,966 34
--------
ITALY--3.9%
Arnaldo Mondadori 12,350 71
Fiat 56,000 201
Istituto Banc San Paolo Torino 3,900 28
Istituto Banc San Paolo Torino 144A 13,800 99
Stet Societa Finanziaria Telefonica 31,900 186
Telecom Italia 25,000 80
--------
665
--------
JAPAN--21.4%
Aisin Seiki 11,000 168
Asahi Organic Chemical 6,000 31
Dai Nippon Printing 3,000 68
Daibiru 2,000 24
Eisai 7,000 133
Exedy Corp 3,000 38
Fuji Machine Manufacturing 6,000 217
Fukuda Denshi 2,000 41
Hitachi 8,000 89
JGC 14,000 97
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Kyudenko 3,000 $ 25
Mabuchi Motor 3,000 174
Maruichi Steel Tube 6,000 100
Matsumotokiyoshi 2,000 85
Matsushita Electric 8,000 161
Mazda Motor 32,000 112
Meiwa Estate 1,000 22
Mitsubishi Heavy Industries 14,000 107
Murata Manufacturing 4,000 159
Namco 5,000 193
NGK Spark Plugs 15,000 164
Nikko Securities 15,000 92
Nippon Express 8,000 64
Nippon Television Network 400 161
Okumura 10,000 53
Royal 300 6
Sakura Bank 23,000 176
Sanwa Bank 5,000 74
Sawako 2,000 36
Shimachu 4,000 120
Sony Music Entertainment 4,000 188
Square Company Ltd. 2,000 99
Sumitomo Rubber Industries 20,000 135
Tokyo Steel 2,800 31
Toyo Ink 26,000 104
Yamato Kogyo 15,000 148
--------
3,695
--------
KOREA--0.6%
Cho Sun Breweries 3,020 86
Hanwha Chemical 2,101 17
Shinsegae Department Store 200 8
--------
111
--------
MALAYSIA--1.2%
Bumi Armada 330 1
Land & General 30,000 34
Renong Berhad 20,000 26
Resorts World 13,000 39
Sime Darby 26,000 87
Sungei Way Holdings 10,000 19
--------
206
--------
MEXICO--2.4%
Cemex CPO 19,000 81
Corporacion Geo SA Series B 12,400 71
Femsa Series B 11,000 66
Grupo Financiero Bancomer Series B 105,000 51
Grupo Televisa 2,800 42
Kimberly Clark Series A 15,000 60
Panamerican Beverage Series A (ADR) 1,300 43
--------
414
--------
40
<PAGE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
NETHERLANDS--3.0%
Akzo Nobel 980 $ 134
International Nederlanden 5,075 234
Polygram 3,000 157
--------
525
--------
NEW ZEALAND--0.7%
Brierley Investment 43,000 42
Carter Holt Harvey 31,000 80
--------
122
--------
NORWAY--1.1%
Nycomed ASA Series A 6,800 100
Saga Petroleum AS Series A 4,400 83
--------
183
--------
PERU--0.3%
Buenaventura (ADR) 2,200 43
--------
PHILIPPINES--0.5%
Philippine Long Distance Telephone
(ADR) 1,000 64
Phillipino Telephone 30,000 15
--------
79
--------
SINGAPORE--2.5%
Development Bank of Singapore 8,000 101
Far East Levingston Shipbuilding 20,000 68
Keppel 15,000 67
Keppel Series A 3,750 16
Straits Steamship Land 20,000 53
United Overseas Bank 12,000 123
--------
428
--------
SPAIN--0.6%
Empresa Nacional de Electricidad 700 59
Telefonica de Espana 1,600 46
--------
105
--------
SWEDEN--2.0%
Nordbanken 3,390 114
Pharmacia & Upjohn 5,500 186
Sparbanken Sverige Ab Series A 2,020 45
--------
345
--------
SWITZERLAND--2.6%
Ciba Speciality Chemicals 30 3
Nestle 78 103
Sulzer 275 235
Swissair Registered 100 112
--------
453
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
THAILAND--0.3%
Land & House 6,000 $ 13
Siam City Cement 2,000 8
Siam Commercial Bank 8,000 33
--------
54
--------
UNITED KINGDOM--16.5%
Amersham International 1,700 45
Associated British Foods 22,400 193
Bank of Scotland 20,000 128
Bass 6,300 77
BOC Group 7,800 136
Boots 12,800 150
British Petroleum 2,000 25
British Telecommunications 18,750 139
BTR 36,000 123
Burmah Castrol 9,100 154
Carlton Communications 17,000 144
Centrica 108,400 132
Cookson Group 40,769 144
De La Rue 16,206 100
Guinness 22,000 215
Jefferson Smurf 64,685 186
National Grid Group 13,400 49
Powergen 12,903 154
Rank Group 22,500 143
Reckitt & Coleman 10,573 158
Sainsbury 25,761 156
Sun Alliance Group 11,919 88
--------
2,839
--------
Total Foreign Common Stocks
(Cost $14,165) 15,846
--------
FOREIGN PREFERRED STOCKS--2.0%
BRAZIL--1.2%
Banco Itau SA 54,000 30
Cemig 620,000 31
Copel Series B 3,695,900 66
Petroleo Brasileiro 291,000 80
--------
207
--------
GERMANY--0.8%
Hornbach 1,600 133
--------
Total Foreign Preferred Stocks
(Cost $268) 340
--------
41
<PAGE>
Statement of Net Assets
INTERNATIONAL GROWTH FUND (CONTINUED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT--7.3%
Paine Webber
5.90% dated 6/30/97, matures
07/01/97, repurchase price
$1,206,206 (collateralized by
U.S. Treasury Note, par value
$1,265,000, 6.625%, matures
04/30/02, market value
$1,290,751) $1,260 $ 1,260
--------
Total Repurchase Agreement,
(Cost $1,260) 1,260
--------
Total Investments--101.2%
(Cost $15,693) 17,446
--------
OTHER ASSETS AND LIABILITIES--(1.2%)
Other Assets and Liabilities, Net (199)
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 1,328,181 outstanding shares
of beneficial interest 13,995
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 61,379 outstanding shares
of beneficial interest 624
Portfolio Shares of Class B (unlimited
authorization -- no par value) based
on 2,657 outstanding shares
of beneficial interest 32
Undistributed net investment income 146
Accumulated net realized gain
on investments 698
Net unrealized depreciation on foreign
currency contracts and translation
of other assets and liabilities
denominated in foreign currency (1)
Net unrealized appreciation on investments 1,753
--------
Total Net Assets--100.0% $ 17,247
========
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Class I $ 12.39
========
Net Asset Value and Redemption
Price Per Share -- Class A $ 12.36
========
Maximum Public Offering
Price Per Share -- Class A
($12.36 / 94.5%) $ 13.08
========
Net Asset Value and Offering
Price Per Share -- Class B (1) $ 12.37
========
(1) CLASS B HAS A CONTINGENT DEFERRED SALES CHARGE.
ADR--AMERICAN DEPOSITORY RECEIPT
GDR--GLOBAL DEPOSITORY RECEIPT
The accompanying notes are an integral part of the financial statements.
42
<PAGE>
<TABLE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
Statement of Operations (000)
FOR THE PERIOD ENDED JUNE 30, 1997 (UNAUDITED)
<CAPTION>
U.S. TREASURY PRIME U.S. TREASURY
SECURITIES OBLIGATION TAX-EXEMPT SECURITIES
MONEY MONEY MONEY PLUS MONEY
MARKET MARKET MARKET MARKET
FUND FUND FUND FUND
-----------------------------------------------------------------------------------------
INTEREST INCOME: $12,169 $11,867 $1,338 $1,980
-----------------------------------------------------------------------------------------
EXPENSES:
<S> <C> <C> <C> <C>
Investment advisory fee 840 761 129 56
Less: Investment advisory fee waived (52) (28) (10) (39)
Administration fee 480 435 73 131
Custody fee 60 54 9 9
Transfer agency fee 47 54 12 16
Professional fees 49 47 7 11
Registration fees 70 37 10 1
Distribution fees (1) 5 16 5 11
Printing expense 49 45 7 8
Amortization of deferred organizational costs 1 1 1 1
Insurance and other expenses 16 7 1 1
-----------------------------------------------------------------------------------------
Total expenses, net of waivers 1,565 1,429 244 206
-----------------------------------------------------------------------------------------
NET INVESTMENT INCOME 10,604 10,438 1,094 1,774
Net realized gain
on investments 78 -- -- --
-----------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $10,682 $10,438 $1,094 $1,774
=========================================================================================
<FN>
(1) ALL DISTRIBUTION FEES ARE INCURRED AT THE CLASS A LEVEL EXCEPT FOR THE U.S. TREASURY SECURITIES PLUS MONEY MARKET FUND.
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>
43
<PAGE>
<TABLE>
Statement of Operations (000)
FOR THE PERIOD ENDED JUNE 30, 1997 (UNAUDITED)
<CAPTION>
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 $855 $7,780 $3,497 $1,168 $ 915
Less: Foreign taxes withheld -- -- -- -- --
-----------------------------------------------------------------------------------------
Total income 855 7,780 3,497 1,168 915
-----------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fee 93 689 373 108 102
Less: Investment advisory fee waived (40) (133) (68) (30) (24)
Administration fee 31 230 124 36 34
Less: Administration fee waived -- -- -- -- (7)
Custody fee 4 29 16 5 4
Transfer agency fee 8 27 17 5 5
Professional fees 2 24 13 3 4
Registration fees 21 17 8 12 17
Distribution fees (1) 1 5 23 3 --
Printing expense 3 24 13 4 4
Amortization of deferred
organizational costs 1 1 1 1 --
Insurance and other expenses 1 7 3 1 2
-----------------------------------------------------------------------------------------
Total expenses, net of waivers 125 920 523 148 141
-----------------------------------------------------------------------------------------
NET INVESTMENT INCOME: 730 6,860 2,974 1,020 774
Net realized gain (loss)
on investments -- 158 18 (111) (13)
Net realized loss on foreign currency
transactions and foreign
currency contracts -- _ -- -- --
Net change in unrealized depreciation
on foreign currency and translation
of other assets and liabilities
denominated in foreign currency -- _ -- -- --
Net unrealized appreciation
(deprecation) of investment
securities (5) (35) 429 49 111
-----------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS: $725 $6,983 $3,421 $958 $872
=========================================================================================
<FN>
(1) ALL DISTRIBUTION FEES ARE INCURRED AT THE CLASS A AND CLASS B LEVEL.
(2) THE EQUITY GROWTH FUND COMMENCED OPERATIONS ON FEBRUARY 3, 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>
44
<PAGE>
<TABLE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
EQUITY EQUITY EQUITY INTERNATIONAL
GNMA GROWTH VALUE INCOME MID CAP BALANCED GROWTH
FUND FUND (2) FUND FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
-- $ 641 $ 1,991 $ 1,475 $ 252 $ 162 $ 230
$268 184 395 268 84 436 15
-- -- -- -- -- -- (24)
- ------------------------------------------------------------------------------------------------------------------------------------
268 825 2,386 1,743 336 598 221
- ------------------------------------------------------------------------------------------------------------------------------------
22 564 779 398 188 114 77
(13) (183) (263) (136) (73) (47) (16)
7 151 208 106 50 30 15
-- -- -- -- -- -- --
1 19 26 13 6 4 13
6 15 25 15 9 7 11
1 18 25 12 4 2 3
5 -- 5 2 8 7 3
1 -- 14 18 7 12 --
1 17 22 11 5 3 1
-- 1 1 1 1 1 1
-- 6 8 5 2 1 9
- ------------------------------------------------------------------------------------------------------------------------------------
31 608 850 445 207 134 117
- ------------------------------------------------------------------------------------------------------------------------------------
237 217 1,536 1,298 129 464 104
(29) 13,502 14,785 5,815 438 399 496
-- -- -- -- -- -- (6)
-- -- -- -- -- -- (2)
46 733 15,635 8,173 2,401 2,684 973
- ------------------------------------------------------------------------------------------------------------------------------------
$254 $14,452 $31,956 $15,286 $2,968 $3,547 $1,565
====================================================================================================================================
</TABLE>
45
<PAGE>
<TABLE>
Statements of Changes in Net Assets (000)
FOR THE PERIOD ENDED JUNE 30, 1997 (UNAUDITED) AND THE YEAR ENDED DECEMBER 31,1996
<CAPTION>
MONEY MARKET FUNDS
U.S. TREASURY PRIME OBLIGATION
SECURITIES MONEY MARKET
MONEY MARKET FUND FUND
--------------------------------------------------------------------------
1997 1996 1997 1996
--------------------------------------------------------------------------
INVESTMENT ACTIVITIES:
<S> <C> <C> <C> <C>
Net investment income $ 10,604 $ 18,990 $ 10,438 $ 17,654
Net realized gain (loss) on securities sold 78 40 -- (32)
--------------------------------------------------------------------------
Net increase in net assets resulting
from operations 10,682 19,030 10,438 17,622
--------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class I (10,506) (18,841) (10,135) (17,270)
Class A (81) (149) (300) (384)
Realized capital gains:
Class I -- -- -- --
Class A -- -- -- --
--------------------------------------------------------------------------
Total distributions (10,587) (18,990) (10,435) (17,654)
--------------------------------------------------------------------------
SHARE TRANSACTIONS (ALL AT $1.00 PER SHARE):
Class I:
Shares issued 599,216 1,120,245 360,824 802,073
Shares issued in lieu of cash distributions 124 90 1,519 973
Shares redeemed (560,782) (1,079,179) (379,250) (661,258)
--------------------------------------------------------------------------
Net Class I share transactions 38,558 41,156 (16,907) 141,788
--------------------------------------------------------------------------
Class A:
Shares issued 2,196 4,115 17,971 20,093
Shares issued in lieu of cash distributions 67 137 239 363
Shares redeemed (2,473) (4,279) (15,036) (16,034)
--------------------------------------------------------------------------
Net Class A share transactions (210) (27) 3,174 4,422
--------------------------------------------------------------------------
Increase/(decrease) in net assets from
share transactions 38,348 41,129 (13,733) 146,210
--------------------------------------------------------------------------
Total increase/(decrease) in net assets 38,443 41,169 (13,730) 146,178
--------------------------------------------------------------------------
NET ASSETS:
Beginning of period 508,232 467,063 412,770 266,592
--------------------------------------------------------------------------
NET ASSETS:
End of period $ 546,675 $ 508,232 $ 399,040 $ 412,770
==========================================================================
<FN>
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>
46
<PAGE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
TAX-EXEMPT U.S. TREASURY
MONEY MARKET SECURITIES PLUS
FUND MONEY MARKET FUND
- --------------------------------------------------------------------------------
1997 1996 1997 1996
- --------------------------------------------------------------------------------
$ 1,094 $ 2,108 $ 1,774 $ 3,188
-- (1) -- --
- --------------------------------------------------------------------------------
1,094 2,107 1,774 3,188
- --------------------------------------------------------------------------------
(1,039) (2,003) (1,774) (3,188)
(55) (105) -- --
-- -- -- --
-- -- -- --
- --------------------------------------------------------------------------------
(1,094) (2,108) (1,774) (3,188)
- --------------------------------------------------------------------------------
58,866 136,217 259,735 527,102
211 101 1,279 3,035
(58,732) (132,864) (254,912) (529,661)
- --------------------------------------------------------------------------------
345 3,454 6,102 476
- --------------------------------------------------------------------------------
2,430 6,240 -- --
44 114 -- --
(1,977) (7,739) -- --
- --------------------------------------------------------------------------------
497 (1,385) -- --
- --------------------------------------------------------------------------------
842 2,069 6,102 476
- --------------------------------------------------------------------------------
842 2,068 6,102 476
- --------------------------------------------------------------------------------
70,934 68,866 65,173 64,697
- --------------------------------------------------------------------------------
$ 71,776 $ 70,934 $ 71,275 $ 65,173
================================================================================
47
<PAGE>
<TABLE>
Statements of Changes in Net Assets (000)
FOR THE PERIOD ENDED JUNE 30, 1997 (UNAUDITED) AND THE YEAR ENDED DECEMBER 31,1996
FIXED INCOME FUNDS
<CAPTION>
--------------------------------------------------------------------------
SHORT-TERM FIXED
INVESTMENT INCOME
FUND FUND
---------------------------------------------------------------------------
1997 1996 1997 1996
---------------------------------------------------------------------------
INVESTMENT ACTIVITIES:
<S> <C> <C> <C> <C>
Net investment income $ 730 $ 1,639 $ 6,860 $ 6,339
Net realized gain (loss) on securities sold -- (29) 158 (8)
Net unrealized appreciation (depreciation)
of investment securities (5) (36) (35) (3,461)
---------------------------------------------------------------------------
Net increase in net assets resulting
from operations 725 1,574 6,983 2,870
---------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class I (711) (1,571) (6,742) (6,017)
Class A (23) (69) (121) (322)
Class B -- -- -- --
Realized capital gains:
Class I -- -- -- (11)
Class A -- -- -- --
Class B -- -- -- --
---------------------------------------------------------------------------
Total distributions (734) (1,640) (6,863) (6,350)
---------------------------------------------------------------------------
SHARE TRANSACTIONS:
Class I:
Proceeds from shares issued 3,949 16,470 13,998 12,563
Shares issued in connection with
acquisition of common trust fund assets -- -- 173,842 --
Reinvestment of cash distributions 581 1,504 2,890 6,010
Cost of shares redeemed (7,116) (16,926) (35,676) (28,653)
---------------------------------------------------------------------------
Net Class I share transactions (2,586) 1,048 155,054 (10,080)
---------------------------------------------------------------------------
Class A:
Proceeds from shares issued 34 492 146 2,412
Reinvestment of cash distributions 20 62 83 274
Cost of shares redeemed (187) (1,515) (1,008) (3,520)
---------------------------------------------------------------------------
Net Class A share transactions (133) (961) (779) (834)
---------------------------------------------------------------------------
Class B:
Proceeds from shares issued -- -- 20 --
Reinvestment of cash distributions -- -- -- --
Cost of shares redeemed -- -- -- --
---------------------------------------------------------------------------
Net Class B share transactions -- -- 20 --
---------------------------------------------------------------------------
Increase (decrease) in net assets from
share transactions (2,719) 87 154,295 (10,914)
---------------------------------------------------------------------------
Total increase (decrease) in net assets (2,728) 21 154,415 (14,394)
---------------------------------------------------------------------------
NET ASSETS:
Beginning of period 32,706 32,685 104,959 119,353
---------------------------------------------------------------------------
NET ASSETS:
End of period $29,978 $32,706 $259,374 $104,959
===========================================================================
SHARES ISSUED AND REDEEMED:
Class I shares:
Issued 395 1,647 1,372 1,208
Shares issued in connection with
acquisition of common trust fund assets -- -- 17,057 --
Issued in lieu of cash distributions 58 150 286 609
Redeemed (712) (1,693) (3,425) (2,829)
---------------------------------------------------------------------------
Net Class I share transactions (259) 104 15,290 (1,012)
---------------------------------------------------------------------------
Class A shares:
Issued 4 49 14 236
Issued in lieu of cash distributions 2 6 8 27
Redeemed (19) (151) (99) (347)
---------------------------------------------------------------------------
Net Class A share transactions (13) (96) (77) (84)
---------------------------------------------------------------------------
Class B shares:
Issued -- -- 2 --
Issued in lieu of cash distributions -- -- -- --
Redeemed -- -- -- --
---------------------------------------------------------------------------
Net Class B share transactions -- -- 2 --
---------------------------------------------------------------------------
Net increase (decrease) in shares (272) 8 15,215 (1,096)
===========================================================================
<FN>
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>
48
<PAGE>
<TABLE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY INTERMEDIATE- PENNSYLVANIA
MUNICIPAL TERM GOVERNMENT MUNICIPAL GNMA
SECURITIES FUND SECURITIES FUND SECURITIES FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
1997 1996 1997 1996 1997 1996 1997 1996
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 2,974 $ 1,915 $ 1,020 $ 1,614 $ 774 $ 174 $ 237 $ 548
18 (71) (111) (172) (13) (3) (29) 13
429 (483) 49 (533) 111 (17) 46 (317)
- ------------------------------------------------------------------------------------------------------------------------------------
3,421 1,361 958 909 872 154 254 244
- ------------------------------------------------------------------------------------------------------------------------------------
(2,589) (1,007) (963) (1,453) (766) (161) (197) (453)
(379) (907) (59) (161) (7) (13) (40) (95)
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
(2,968) (1,914) (1,022) (1,614) (773) (174) (237) (548)
- ------------------------------------------------------------------------------------------------------------------------------------
14,846 4,639 1,768 7,641 2,580 789 829 2,410
108,448 -- 13,328 -- 37,351 -- -- --
322 879 410 1,116 6 9 120 337
(15,880) (12,628) (7,507) (12,330) (2,966) (458) (1,413) (4,683)
- ------------------------------------------------------------------------------------------------------------------------------------
107,736 (7,110) 7,999 (3,573) 36,971 340 (464) (1,936)
- ------------------------------------------------------------------------------------------------------------------------------------
615 3,066 1 726 66 76 9 187
283 741 42 135 5 10 23 64
(3,455) (9,242) (686) (1,868) (73) (11) (321) (526)
- ------------------------------------------------------------------------------------------------------------------------------------
(2,557) (5,435) (643) (1,007) (2) 75 (289) (275)
- ------------------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- -- -- --
105,179 (12,545) 7,356 (4,580) 36,969 415 (753) (2,211)
- ------------------------------------------------------------------------------------------------------------------------------------
105,632 (13,098) 7,292 (5,285) 37,068 395 (736) (2,515)
- ------------------------------------------------------------------------------------------------------------------------------------
40,936 54,034 27,257 32,542 4,009 3,614 7,996 10,511
- ------------------------------------------------------------------------------------------------------------------------------------
$146,568 $40,936 $34,549 $27,257 $41,077 $4,009 $7,260 $7,996
====================================================================================================================================
1,184 434 175 750 250 78 87 252
10,131 -- 1,311 -- 3,676 -- -- --
30 83 40 110 1 1 13 35
(1,285) (1,187) (741) (1,215) (290) (46) (148) (485)
- ------------------------------------------------------------------------------------------------------------------------------------
10,060 (670) 785 (355) 3,637 33 (48) (198)
- ------------------------------------------------------------------------------------------------------------------------------------
58 287 -- 71 7 8 1 19
26 70 4 14 -- 1 2 7
(323) (871) (67) (184) (7) (1) (33) (55)
- ------------------------------------------------------------------------------------------------------------------------------------
(239) (514) (63) (99) -- 8 (30) (29)
- ------------------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- -- -- --
9,821 (1,184) 722 (454) 3,637 41 (78) (227)
====================================================================================================================================
</TABLE>
49
<PAGE>
<TABLE>
Statements of Changes in Net Assets (000)
FOR THE PERIOD ENDED JUNE 30, 1997 (UNAUDITED) AND THE YEAR ENDED DECEMBER
31,1996
EQUITY FUNDS
<CAPTION>
---------------------------------------------------------------------------
EQUITY GROWTH EQUITY VALUE
FUND (1) FUND
---------------------------------------------------------------------------
1997 1997 1996
---------------------------------------------------------------------------
INVESTMENT ACTIVITIES:
<S> <C> <C> <C>
Net investment income $ 217 $ 1,536 $ 1,763
Net realized gain on securities sold 13,502 14,785 17,503
Net realized loss on foreign currency transactions -- -- --
Net unrealized appreciation (depreciation)on foreign
currency and translation of other assets and
liabilities in foreign currency -- -- --
Net unrealized appreciation (depreciation)
of investment securities 733 15,635 2,402
---------------------------------------------------------------------------
Net increase in net assets resulting
from operations 14,452 31,956 21,668
---------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class I (220) (1,474) (1,641)
Class A -- (63) (122)
Class B -- (2) --
Realized capital gains:
Class I -- -- (15,212)
Class A -- -- (1,302)
Class B -- -- --
---------------------------------------------------------------------------
Total distributions (220) (1,539) (18,277)
---------------------------------------------------------------------------
SHARE TRANSACTIONS:
Class I:
Proceeds from shares issued 3,911 18,439 33,908
Shares issued in connection with
acquisition of common trust fund assets 221,033 84,527 --
Reinvestment of cash distributions 29 465 16,529
Cost of shares redeemed (49,803) (11,919) (19,461)
---------------------------------------------------------------------------
Net Class I share transactions 175,170 91,512 30,976
---------------------------------------------------------------------------
Class A:
Proceeds from shares issued 92 2,054 2,210
Reinvestment of cash distributions -- 34 1,421
Cost of shares redeemed -- (1,109) (1,604)
---------------------------------------------------------------------------
Net Class A share transactions 92 979 2,027
---------------------------------------------------------------------------
Class B:
Proceeds from shares issued 25 903 --
Reinvestment of cash distributions -- -- --
Cost of shares redeemed -- (26) --
---------------------------------------------------------------------------
Net Class B share transactions 25 877 --
---------------------------------------------------------------------------
Increase (decrease) in net assets from
share transactions 175,287 93,368 33,003
---------------------------------------------------------------------------
Total increase (decrease) in net assets 189,519 123,785 36,394
---------------------------------------------------------------------------
NET ASSETS:
Beginning of period -- 126,715 90,321
---------------------------------------------------------------------------
NET ASSETS:
End of period $189,519 $250,500 $126,715
===========================================================================
SHARES ISSUED AND REDEEMED:
Class I shares:
Issued 398 1,283 2,485
Shares issued in connection with
acquisition of common trust fund assets 22,103 6,015 --
Issued in lieu of cash distributions 3 34 1,226
Redeemed (5,027) (837) (1,418)
---------------------------------------------------------------------------
Net Class I share transactions 17,477 6,495 2,293
---------------------------------------------------------------------------
Class A shares:
Issued 9 142 160
Issued in lieu of cash distributions -- 3 109
Redeemed -- (78) (116)
---------------------------------------------------------------------------
Net Class A share transactions 9 67 153
---------------------------------------------------------------------------
Class B shares:
Issued 2 60 --
Issued in lieu of cash distributions -- -- --
Redeemed -- (2) --
---------------------------------------------------------------------------
Net Class B share transactions 2 58 --
---------------------------------------------------------------------------
Net increase (decrease) in shares 17,488 6,620 2,446
---------------------------------------------------------------------------
<FN>
(1) THE EQUITY GROWTH FUND COMMENCED OPERATIONS ON FEBRUARY 3, 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>
50
<PAGE>
<TABLE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME MID CAP BALANCED INTERNATIONAL GROWTH
FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
1997 1996 1997 1996 1997 1996 1997 1996
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C>
$ 1,298 $ 1,553 $ 129 $ 320 $ 464 $ 1,311 $ 104 $ 113
5,815 10,647 438 4,218 399 4,293 496 1,013
-- -- -- -- -- -- (6) (9)
-- -- -- -- -- -- (2) 1
8,173 32 2,401 1,825 2,684 (1,625) 973 307
- ------------------------------------------------------------------------------------------------------------------------------------
15,286 12,232 2,968 6,363 3,547 3,979 1,565 1,425
- ------------------------------------------------------------------------------------------------------------------------------------
(1,155) (1,301) (123) (295) (331) (995) -- (100)
(138) (252) (7) (25) (129) (316) -- (3)
(6) -- -- -- (3) -- -- --
-- (7,946) -- (2,642) -- (2,650) -- (779)
-- (1,706) -- (341) -- (1,256) -- (42)
-- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
(1,299) (11,205) (130) (3,303) (463) (5,217) -- (924)
- ------------------------------------------------------------------------------------------------------------------------------------
13,660 16,356 956 4,772 3,117 5,420 1,575 5,647
34,921 -- -- -- -- -- -- --
301 8,601 50 2,816 149 3,290 -- 521
(5,697) (11,867) (2,748) (7,122) (1,128) (20,821) (1,435) (1,804)
- ------------------------------------------------------------------------------------------------------------------------------------
43,185 13,090 (1,742) 466 2,138 (12,111) 140 4,364
- ------------------------------------------------------------------------------------------------------------------------------------
1,623 5,660 171 665 522 1,186 49 1,040
63 1,928 3 363 65 1,535 -- 45
(1,030) (5,040) (1,335) (1,180) (889) (1,631) (149) (951)
- ------------------------------------------------------------------------------------------------------------------------------------
656 2,548 (1,161) (152) (302) 1,090 (100) 134
- ------------------------------------------------------------------------------------------------------------------------------------
1,139 -- -- -- 504 -- 35 --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- (3) --
- ------------------------------------------------------------------------------------------------------------------------------------
1,139 -- -- -- 504 -- 32 --
- ------------------------------------------------------------------------------------------------------------------------------------
44,980 15,638 (2,903) 314 2,340 (11,021) 72 4,498
- ------------------------------------------------------------------------------------------------------------------------------------
58,967 16,665 (65) 3,374 5,424 (12,259) 1,637 4,999
- ------------------------------------------------------------------------------------------------------------------------------------
70,479 53,814 51,402 48,028 28,338 40,597 15,610 10,611
- ------------------------------------------------------------------------------------------------------------------------------------
$129,446 $70,479 $51,337 $51,402 $33,762 $28,338 $17,247 $15,610
====================================================================================================================================
964 1,181 71 365 264 439 135 503
2,525 -- -- -- -- -- -- --
22 640 4 214 13 281 -- 47
(412) (847) (204) (539) (94) (1,697) (127) (161)
- ------------------------------------------------------------------------------------------------------------------------------------
3,099 974 (129) 40 183 (977) 8 389
- ------------------------------------------------------------------------------------------------------------------------------------
114 414 13 50 44 95 4 93
5 143 -- 28 6 132 -- 4
(72) (360) (99) (90) (74) (130) (13) (84)
- ------------------------------------------------------------------------------------------------------------------------------------
47 197 (86) (12) (24) 97 (9) 13
- ------------------------------------------------------------------------------------------------------------------------------------
76 -- -- -- 41 -- 3 --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
76 -- -- -- 41 -- 3 --
- ------------------------------------------------------------------------------------------------------------------------------------
3,222 1,171 (215) 28 200 (880) 2 402
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
51
<PAGE>
<TABLE>
Financial Highlights
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED DECEMBER 31 AND FOR THE
PERIOD ENDED JUNE 30, 1997 (UNAUDITED)
<CAPTION>
RATIO OF RATIO OF
EXPENSES NET INCOME
NET ASSET DISTRIBUTIONS RATIO OF RATIO OF TO AVERAGE TO AVERAGE
VALUE NET FROM NET NET ASSET NET ASSETS EXPENSES NET INCOME NET ASSET 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>
1997 $1.00 $0.02 $(0.02) $1.00 2.21%** $543,382 0.65%* 4.42%* 0.67%* 4.40%*
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
1992 (1) 1.00 0.02 (0.02) 1.00 2.81* 387,960 0.65 2.67 0.70 2.62
CLASS A
1997 $1.00 $0.02 $(0.02) $1.00 2.08%** $ 3,293 0.90%* 4.17%* 0.92%* 4.15%*
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
1992(1) 1.00 0.02 (0.02) 1.00 2.56* 436 0.90 2.27 0.95 2.22
- ------------------------------------------------------------------------------------------------------------------------------------
PRIME OBLIGATION MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1997 $1.00 $0.02 $(0.02) $1.00 2.41%** $384,521 0.65%* 4.81%* 0.66%* 4.80%*
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
1992(1) 1.00 0.02 (0.02) 1.00 2.85* 124,811 0.65 2.63 0.77 2.51
CLASS A
1997 $1.00 $0.02 $(0.02) $1.00 2.28%** $ 14,519 0.90%* 4.57%* 0.91%* 4.56%*
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
1992(1) 1.00 0.02 (0.02) 1.00 2.60* 243 0.89 2.43 1.01 2.31
- ------------------------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1997 $1.00 $0.01 $(0.01) $1.00 1.50%** $ 67,426 0.65%* 3.00%* 0.68%* 2.97%*
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
1992(2) 1.00 0.02 (0.02) 1.00 2.42* 22,963 0.65 2.39 0.79 2.25
CLASS A
1997 $1.00 $0.01 $(0.01) $1.00 1.37%** $ 4,350 0.90%* 2.76%* 0.92%* 2.74%*
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
1992(2) 1.00 0.02 (0.02) 1.00 2.17* 2,273 0.90 2.07 1.04 1.93
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY SECURITIES PLUS MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1997 $1.00 $0.02 $(0.02) $1.00 2.37%** $ 71,275 0.55%* 4.73%* 0.65%* 4.63%*
1996 1.00 0.05 (0.05) 1.00 4.82 65,173 0.55 4.72 0.65 4.62
1995 1.00 0.05 (0.05) 1.00 5.40 64,697 0.55 5.26 0.62 5.19
1994 1.00 0.04 (0.04) 1.00 3.60 46,301 0.55 3.42 0.63 3.34
1993(3) 1.00 0.02 (0.02) 1.00 2.66* 89,278 0.55 2.62 0.68 2.49
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
*ANNUALIZED
**RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
(1) COMMENCED OPERATIONS ON APRIL 1, 1992. RATIOS FOR THIS PERIOD HAVE BEEN ANNUALIZED.
(2) COMMENCED OPERATIONS ON APRIL 6, 1992. RATIOS FOR THIS PERIOD HAVE BEEN ANNUALIZED.
(3) COMMENCED OPERATIONS ON MAY 3, 1993. RATIOS FOR THIS PERIOD HAVE BEEN ANNUALIZED.
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
52
<PAGE>
<TABLE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
<CAPTION>
NET ASSET REALIZED AND DISTRIBUTIONS DISTRIBUTIONS RATIO OF RATIO OF
VALUE NET UNREALIZED FROM NET FROM NET ASSET NET ASSETS EXPENSES INCOME
BEGINNING INVESTMENT GAINS OR LOSSES INVESTMENT CAPITAL VALUE END TOTAL END OF TO AVERAGE TO AVERAGE
OF PERIOD INCOME ON SECURITIES INCOME GAINS OF PERIOD RETURN(+) PERIOD (000) NET ASSETS NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENT FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1997 $10.01 $0.23 $(0.01) $(0.23) .-- $10.00 2.28%** $ 29,036 0.80%* 4.72%*
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
1992(1) 10.00 0.27 0.03 (0.27) $(0.02) 10.01 3.47* 30,998 0.80 3.50
CLASS A
1997 $10.02 $0.22 .-- $(0.22) .-- $10.02 2.25%** $ 943 1.05%* 4.47%*
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
1992(1) 10.00 0.25 0.03 (0.25) $(0.02) 10.01 3.23* 193 1.05 3.14
- ------------------------------------------------------------------------------------------------------------------------------------
FIXED INCOME FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1997 $10.21 $0.30 $(0.04) $(0.30) .-- $10.17 2.55%** $255,331 0.80%* 5.96%*
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
1992(1) 10.00 0.49 0.44 (0.49) (0.06) 10.38 11.60* 89,701 0.80 6.24
CLASS A
1997 $10.20 $0.28 $(0.06) $(0.28) .-- $10.14 2.22%** $ 4,023 1.05%* 5.62%*
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
1992(1) 10.00 0.47 0.44 (0.47) (0.06) 10.38 11.39* 1,214 1.05 5.93
CLASS B
1997(2) $10.11 $0.18 $ 0.07 $(0.18) .-- $10.18 1.29%** $ 20 1.80%* 4.87%*
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY MUNICIPAL SECURITIES FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1997 $10.71 $0.24 $0.04 $(0.24) .-- $10.75 2.72%** $128,852 0.80%* 4.82%*
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
1992(3) 10.00 0.30 0.29 (0.30) .-- 10.29 9.01* 9,395 0.46 4.56
CLASS A
1997 $10.70 $0.25 .-- $(0.23) .-- $10.72 2.40%** $ 17,716 1.05%* 4.41%*
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
1992(3) 10.00 0.29 0.29 (0.29) .-- 10.29 8.29* 5,424 0.62 4.44
- ------------------------------------------------------------------------------------------------------------------------------------
RATIO OF RATIO OF
EXPENSES NET INCOME
TO AVERAGE TO AVERAGE
NET ASSETS NET ASSETS PORTFOLIO
(EXCLUDING (EXCLUDING TURNOVER
WAIVERS) WAIVERS) RATE
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT FUND
- --------------------------------------------------------------------------------
CLASS I
1997 1.06%* 4.46%* 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
1992(1) 1.01 3.29 68.15
CLASS A
1997 1.31%* 4.22%* 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
1992(1) 1.26 2.93 68.15
- --------------------------------------------------------------------------------
FIXED INCOME FUND
- --------------------------------------------------------------------------------
CLASS I
1997 0.91%* 5.85%* 26.14%
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
1992(1) 0.94 6.10 23.86
CLASS A
1997 1.16%* 5.51%* 26.14%
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
1992(1) 1.20 5.78 23.86
CLASS B
1997(2) 1.87%* 4.80%* 26.14%
- --------------------------------------------------------------------------------
NEW JERSEY MUNICIPAL SECURITIES FUND
- --------------------------------------------------------------------------------
CLASS I
1997 0.91%* 4.71%* 14.01%
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
1992(3) 1.22 3.80 2.23
CLASS A
1997 1.17%* 4.29%* 14.01%
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
1992(3) 1.39 3.67 2.23
- --------------------------------------------------------------------------------
<FN>
* ANNUALIZED
** RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
(+) TOTAL RETURN DOES NOT REFLECT SALES LOADS ON CLASS A AND CLASS B SHARES.
(1) COMMENCED OPERATIONS ON APRIL 1, 1992. RATIOS FOR THIS PERIOD HAVE BEEN ANNUALIZED.
(2) COMMENCED OPERATIONS ON MAY 16, 1997. RATIOS FOR THIS PERIOD HAVE BEEN ANNUALIZED.
(3) COMMENCED OPERATIONS ON MAY 4, 1992. RATIOS FOR THIS PERIOD HAVE BEEN ANNUALIZED.
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
53
<PAGE>
<TABLE>
Financial Highlights
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED DECEMBER 31 AND FOR THE
PERIOD ENDED JUNE 30, 1997 (UNAUDITED)
<CAPTION>
NET ASSET REALIZED AND DISTRIBUTIONS DISTRIBUTIONS RATIO OF RATIO OF
VALUE NET UNREALIZED FROM NET FROM NET ASSET NET ASSETS EXPENSES INCOME
BEGINNING INVESTMENT GAINS OR LOSSES INVESTMENT CAPITAL VALUE END TOTAL END OF TO AVERAGE TO AVERAGE
OF PERIOD INCOME ON SECURITIES INCOME GAINS OF PERIOD RETURN(+) PERIOD (000) NET ASSETS NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE-TERM GOVERNMENT SECURITIES FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1997 $10.16 $0.28 $(0.01) $(0.28) .-- $10.15 2.74%** $ 32,619 0.80%* 5.68%*
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
1992(1) 10.00 0.41 0.24 (0.41) (0.01) 10.23 7.95* 16,327 0.80 5.30
CLASS A
1997 $10.16 $0.27 $(0.02) $(0.27) .-- $10.14 2.51%** $ 1,930 1.05%* 5.39%*
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
1992(1) 10.00 0.39 0.25 (0.39) (0.01) 10.24 7.86* 2,190 1.05 5.00
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA MUNICIPAL SECURITIES FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1997 $10.17 $0.22 $0.02 $(0.22) .-- $10.19 2.43%** $ 40,735 0.80%* 4.53%*
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(2) 10.00 0.23 0.17 (0.23) .-- 10.17 6.01 2,922 0.80 3.35
CLASS A
1997 $10.17 $0.21 $(0.01) $(0.21) .-- $10.16 2.02%** $ 342 1.05%* 4.20%*
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(3) 9.98 0.20 0.19 (0.20) .-- 10.17 6.28* 289 1.05 3.24
- ------------------------------------------------------------------------------------------------------------------------------------
GNMA FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1997 $9.63 $0.31 $0.03 $(0.31) .-- $9.66 3.60%** $ 6,122 0.80%* 6.51%*
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(2) 10.00 0.34 (0.15) (0.34) .-- 9.85 2.80* 10,900 0.80 4.48
CLASS A
1997 $9.61 $0.31 $0.02 $(0.30) .-- $9.64 3.48%** $ 1,138 1.05%* 6.28%*
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(4) 10.01 0.31 (0.16) (0.31) .-- 9.85 2.31* 2,633 1.05 4.70
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
RATIO OF RATIO OF
EXPENSES NET INCOME
TO AVERAGE TO AVERAGE
NET ASSETS NET ASSETS PORTFOLIO
(EXCLUDING (EXCLUDING TURNOVER
WAIVERS) WAIVERS) RATE
- --------------------------------------------------------------------------------
INTERMEDIATE-TERM GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
CLASS I
1997 0.97%8 5.51%* 36.71%*
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
1992(1) 1.11 4.99 12.38
CLASS A
1997 1.22%* 5.22%* 36.71%*
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
1992(1) 1.36 4.69 12.38
- --------------------------------------------------------------------------------
PENNSYLVANIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
CLASS I
1997 0.98%* 4.35%* 39.79%*
1996 1.49 3.62 25.88
1995 1.27 3.58 36.92
1994 1.61 2.86 38.20
1993(2) 1.48 2.67 16.51
CLASS A
1997 1.33%* 3.93%* 39.79%*
1996 1.74 3.39 25.88
1995 1.55 3.30 36.92
1994 1.92 2.55 38.20
1993(3) 1.48 2.81 16.51
- --------------------------------------------------------------------------------
GNMA FUND
- --------------------------------------------------------------------------------
CLASS I
1997 1.16%* 6.15%* 0.00%
1996 1.16 5.87 5.77
1995 1.13 5.96 9.69
1994 0.97 5.55 102.77
1993(2) 1.08 4.20 252.73
CLASS A
1997 1.40%* 5.93%* 0.00%
1996 1.41 5.62 5.77
1995 1.37 5.73 9.69
1994 1.22 5.30 102.77
1993(4) 1.29 4.46 252.73
- --------------------------------------------------------------------------------
* ANNUALIZED
** RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
(+) TOTAL RETURN DOES NOT REFLECT SALES LOADS ON CLASS A AND CLASS B SHARES.
(1) COMMENCED OPERATIONS ON APRIL 1, 1992. RATIOS FOR THIS PERIOD
HAVE BEEN ANNUALIZED.
(2) COMMENCED OPERATIONS ON MAY 3, 1993. RATIOS FOR THIS PERIOD
HAVE BEEN ANNUALIZED.
(3) COMMENCED OPERATIONS ON MAY 13, 1993. RATIOS FOR THIS PERIOD
HAVE BEEN ANNUALIZED.
(4) COMMENCED OPERATIONS ON MAY 5, 1993. RATIOS FOR THIS PERIOD
HAVE BEEN ANNUALIZED.
The accompanying notes are an integral part of the financial statements.
54
<PAGE>
<TABLE>
[PILLAR LOGO OMITTED]
JUNE 30, 1997 (UNAUDITED)
<CAPTION>
NET ASSET REALIZED AND DISTRIBUTIONS DISTRIBUTIONS RATIO OF RATIO OF
VALUE NET UNREALIZED FROM NET FROM NET ASSET NET ASSETS EXPENSES INCOME
BEGINNING INVESTMENT GAINS OR LOSSES INVESTMENT CAPITAL VALUE END TOTAL END OF TO AVERAGE TO AVERAGE
OF PERIOD INCOME ON SECURITIES INCOME GAINS OF PERIOD RETURN(+) PERIOD (000) NET ASSETS NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY GROWTH FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1997(1) $10.00 $0.01 $0.84 $(0.01) -- $10.84 8.53%** $189,397 0.80%* 0.29%*
CLASS A
1997(1) $10.00 -- $0.86 -- -- $10.86 8.61% $ 96 1.05%* 0.02%
CLASS B
1997(2) $10.41 $(0.01) $0.43 -- -- $10.83 4.34% $ 26 1.80%* (0.78)%
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY VALUE FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1997 $13.35 $0.10 $2.20 $(0.10) -- $15.55 17.27%** $236,917 0.80%* 1.49%*
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
1992(3) 10.00 0.14 0.64 (0.14) -- 10.64 10.51* 62,116 0.80 1.82
CLASS A
1997 $13.35 $0.08 $2.20 $(0.08) -- $15.55 17.13%** $ 12,684 1.05%* 1.19%*
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
1992(3) 10.00 0.09 0.67 (0.10) -- 10.66 10.35* 1,562 1.05 1.64
CLASS B
1997(4) $14.81 .-- $0.76 $(0.03) -- $15.54 5.15%** $ 899 1.80%* 0.15%*
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1997 $13.32 $0.16 $1.89 $(0.16) -- $15.21 15.47%** $113,372 0.80%* 2.48%*
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
1992(3) 10.00 0.22 0.72 (0.22) -- 10.72 12.72* 32,538 0.80 2.88
CLASS A
1997 $13.35 $0.15 $1.88 $(0.14) -- $15.24 15.29%** $ 14,914 1.05%* 2.14%*
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
1992(3) 10.00 0.15 0.77 (0.19) -- 10.73 12.43* 585 1.05 2.54
CLASS B
1997(5) $14.34 $0.01 $0.92 $(0.07) -- $15.20 6.51%** $ 1,160 1.80%* 1.46%*
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
RATIO OF RATIO OF
EXPENSES NET INCOME
TO AVERAGE TO AVERAGE
NET ASSETS NET ASSETS PORTFOLIO AVERAGE
(EXCLUDING (EXCLUDING TURNOVER COMMISSION
WAIVERS) WAIVERS) RATE RATE(++)
- --------------------------------------------------------------------------------
EQUITY GROWTH FUND
- --------------------------------------------------------------------------------
CLASS I
1997(1) 1.04% 0.05% 52.52% $.0636
CLASS A
1997(1) 1.12% (0.05)% 52.52% $.0636
CLASS B
1997(2) 2.07% (1.05)% 52.52% $.0636
- --------------------------------------------------------------------------------
EQUITY VALUE FUND
- --------------------------------------------------------------------------------
CLASS I
1997 1.06% 1.23% 26.77% $.0835
1996 1.08 1.39 85.30 .0950
1995 1.07 1.81 61.88 n/a
1994 1.06 1.66 44.98 n/a
1993 1.07 1.47 89.91 n/a
1992(3) 1.10 1.52 45.68 n/a
CLASS A
1997 1.30* 0.94%* 26.77% $.0835
1996 1.33 1.14 85.30 .0950
1995 1.32 1.56 61.88 n/a
1994 1.31 1.41 44.98 n/a
1993 1.30 1.26 89.91 n/a
1992(3) 1.36 1.33 45.68 n/a
CLASS B
1997(4) 2.04%* (0.09)%* 26.77% $.0835
- --------------------------------------------------------------------------------
EQUITY INCOME FUND
- --------------------------------------------------------------------------------
CLASS I
1997 1.06%* 2.22%* 22.36% $.0930
1996 1.09 2.26 85.47 .1095
1995 1.10 2.31 42.97 n/a
1994 1.08 2.68 37.76 n/a
1993 1.10 2.35 89.89 n/a
1992(3) 1.14 2.54 58.41 n/a
CLASS A
1997 1.31%* 1.88%* 22.36% $.0930
1996 1.34 2.01 85.47 .1095
1995 1.35 2.06 42.97 n/a
1994 1.33 2.43 37.76 n/a
1993 1.35 2.12 89.89 n/a
1992(3) 1.40 2.19 58.41 n/a
CLASS B
1997(5) 2.04%* 1.22%* 22.36% $.0930
- --------------------------------------------------------------------------------
* ANNUALIZED
** RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
(+) TOTAL RETURN DOES NOT REFLECT SALES LOADS ON CLASS A AND CLASS B SHARES.
(++) AVERAGE COMMISSION RATE PAID PER SHARE FOR SECURITY PURCHASES AND SALES
DURING THE PERIOD. PRESENTATION OF THE RATE IS ONLY REQUIRED FOR THE FISCAL
YEARS BEGINNING AFTER SEPTEMBER 1, 1995.
(1) COMMENCED OPERATIONS ON FEBRUARY 3, 1997. RATIOS FOR THIS PERIOD HAVE
BEEN ANNUALIZED.
(2) COMMENCED OPERATIONS ON MAY 21, 1997. RATIOS FOR THIS PERIOD HAVE
BEEN ANNUALIZED.
(3) COMMENCED OPERATIONS ON APRIL 1, 1992. RATIOS FOR THIS PERIOD HAVE
BEEN ANNUALIZED.
(4) COMMENCED OPERATIONS MAY 12, 1997. RATIOS FOR THIS PERIOD HAVE BEEN
ANNUALIZED.
(5) COMMENCED OPERATIONS MAY 8, 1997. RATIOS FOR THIS PERIOD HAVE BEEN
ANNUALIZED.
The accompanying notes are an integral part of the financial statements.
55
<PAGE>
Financial Highlights
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED DECEMBER 31 AND FOR THE
PERIOD ENDED JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NET ASSET REALIZED AND DISTRIBUTIONS DISTRIBUTIONS RATIO OF RATIO OF
VALUE NET UNREALIZED FROM NET FROM NET ASSET NET ASSETS EXPENSES INCOME
BEGINNING INVESTMENT GAINS OR LOSSES INVESTMENT CAPITAL VALUE END TOTAL END OF TO AVERAGE TO AVERAGE
OF PERIOD INCOME ON SECURITIES INCOME GAINS OF PERIOD RETURN(+) PERIOD (000) NET ASSETS NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
MID CAP FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1997 $13.33 $0.04 $0.77 $(0.04) -- $14.10 6.07%** $46,358 0.80%* 0.54%*
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
1992(1) 10.00 0.07 0.99 (0.07) -- 10.99 14.30* 29,507 0.80 0.98
CLASS A
1997 $13.31 $0.02 $0.76 $(0.02) -- $14.07 5.86%** $4,979 1.05%* 0.29%*
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
1992(1) 10.00 0.05 1.00 (0.06) -- 10.99 14.08* 637 1.05 0.88
- ------------------------------------------------------------------------------------------------------------------------------------
BALANCED FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1997 $11.39 $0.18 $1.17 $(0.18) -- $12.56 11.95%** $23,525 0.80%* 3.11%*
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
1992(1) 10.00 0.29 0.34 (0.28) -- 10.35 8.53* 16,899 0.80 3.88
CLASS A
1997 $11.40 $0.17 $1.17 $(0.16) -- $12.58 11.88%** $ 9,727 1.05%* 2.86%*
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
1992(1) 10.00 0.20 0.40 (0.24) -- 10.36 8.15* 2,990 1.05 3.59
CLASS B
1997(2) $11.93 $0.01 $0.68 $(0.08) -- $12.54 5.78%** $ 510 1.80%* 1.75%*
- ------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL GROWTH FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS I
1997 $11.23 $0.08 $1.08 -- -- $12.39 10.33%** $16,458 1.50%* 1.36%*
1996 10.74 0.08 1.11 $(0.08) $(0.62) 11.23 11.17 14,822 1.50 0.85
1995(3) 10.00 0.03 0.75 (0.02) (0.02) 10.74 7.81 9,990 1.50 0.79
CLASS A
1997 $11.22 $0.07 $1.07 -- -- $12.36 10.16%** $ 757 1.75%* 1.04%*
1996 10.73 0.09 1.06 $(0.04) $(0.62) 11.22 10.88 788 1.75 0.70
1995(4) 10.00 0.01 0.75 (0.01) (0.02) 10.73 7.64 621 1.75 0.45
CLASS B
1997(5) $11.45 $0.01 $0.91 -- -- $12.37 8.03%** $ 32 2.50%* 1.93%*
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
RATIO OF RATIO OF
EXPENSES NET INCOME
TO AVERAGE TO AVERAGE
NET ASSETS NET ASSETS PORTFOLIO AVERAGE
(EXCLUDING (EXCLUDING TURNOVER COMMISSION
WAIVERS) WAIVERS) RATE RATE(++)
- --------------------------------------------------------------------------------
MID CAP FUND
- --------------------------------------------------------------------------------
CLASS I
1997 1.09%* 0.25%* 0.00% $.0869
1996 1.10 0.36 41.41 .1010
1995 1.10 0.98 32.96 n/a
1994 1.08 0.78 13.82 n/a
1993 1.10 0.73 24.49 n/a
1992(1) 1.15 0.63 9.29 n/a
CLASS A
1997 1.34%* 0.00%* 0.00% $.0869
1996 1.35 0.11 41.41 .1010
1995 1.35 0.73 32.96 n/a
1994 1.33 0.57 13.82 n/a
1993 1.35 0.53 24.49 n/a
1992(1) 1.40 0.53 9.29 n/a
- --------------------------------------------------------------------------------
BALANCED FUND
- --------------------------------------------------------------------------------
CLASS I
1997 1.11%* 2.80%* 30.56% $.1166
1996 1.11 3.37 43.80 .1165
1995 1.11 3.58 41.63 n/a
1994 1.09 3.35 27.15 n/a
1993 1.14 3.41 63.03 n/a
1992(1) 1.20 3.48 82.76 n/a
CLASS A
1997 1.36%* 2.55%* 30.56% $.1166
1996 1.36 3.12 43.80 .1165
1995 1.36 3.33 41.63 n/a
1994 1.34 3.10 27.15 n/a
1993 1.38 3.14 63.03 n/a
1992(1) 1.45 3.19 82.76 n/a
CLASS B
1997(2) 2.00%* 1.55%* 30.56% $.1166
- --------------------------------------------------------------------------------
INTERNATIONAL GROWTH FUND
- --------------------------------------------------------------------------------
CLASS I
1997 1.70%* 1.16%* 36.32% $.0050
1996 1.73 0.62 67.03 .0051
1995(3) 2.11 0.18 14.32 n/a
CLASS A
1997 1.95%* 0.84%* 36.32% $.0050
1996 1.98 0.47 67.03 .0051
1995(4) 2.38 (0.18) 14.32 n/a
CLASS B
1997(5) 2.81%* 1.62%* 36.32% $.0050
- --------------------------------------------------------------------------------
* ANNUALIZED
** RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
(+) TOTAL RETURN DOES NOT REFLECT SALES LOADS ON CLASS A AND CLASS B SHARES.
(++) AVERAGE COMMISSION RATE PAID PER SHARE FOR SECURITY PURCHASES AND SALES
DURING THE PERIOD. PRESENTATION OF THE RATE IS ONLY REQUIRED FOR THE
FISCAL YEARS BEGINNING AFTER SEPTEMBER 1, 1995.
(1) COMMENCED OPERATIONS ON APRIL 1, 1992. RATIOS FOR THIS PERIOD HAVE
BEEN ANNUALIZED.
(2) COMMENCED OPERATIONS ON MAY 8, 1997. RATIOS FOR THIS PERIOD HAVE
BEEN ANNUALIZED.
(3) COMMENCED OPERATIONS ON MAY 1, 1995. RATIOS FOR THIS PERIOD HAVE
BEEN ANNUALIZED.
(4) COMMENCED OPERATIONS ON MAY 4, 1995. RATIOS FOR THIS PERIOD HAVE
BEEN ANNUALIZED.
(5) COMMENCED OPERATIONS ON MAY 7, 1997. RATIOS FOR THIS PERIOD HAVE
BEEN ANNUALIZED.
The accompanying notes are an integral part of the financial statements.
56
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JUNE 30, 1997 (UNAUDITED)
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
sixteen 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, (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 Growth 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
Growth 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.
57
<PAGE>
Notes to Financial Statements (CONTINUED)
The International Growth 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 Growth 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.
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.
3. ORGANIZATION COSTS AND TRANSACTIONS WITH AFFILIATES
The Trust incurred organization costs of approximately $202,000. 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.
58
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JUNE 30, 1997 (UNAUDITED)
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 with
an annual fee that is calculated daily and paid monthly at an annual rate of
0.35% of average daily net assets. The Administrator has voluntarily agreed to
waive all or a portion of its fee in order to limit the operating expenses of
certain Funds.
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 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 and Tax-Exempt Money Market
Funds, 0.15% of the average daily net assets of the U.S. Treasury Securities
Plus Money Market Fund, 0.60% 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.
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, 1997 were as
follows:
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 -- 183,246 -- 18,502 -- --
Other 300 22,994 10,060 -- 11,178 --
Sales
U.S. Gov't -- 30,222 -- 12,386 -- 871
Other -- 23,263 15,565 -- 11,903 --
EQUITY EQUITY EQUITY MID INTERNATIONAL
GROWTH VALUE INCOME CAP BALANCED GROWTH
-------- -------- -------- -------- ---------- --------------
(000) (000) (000) (000) (000) (000)
Purchases
U.S. Gov't -- -- -- -- 4,491 --
Other 104,802 61,530 28,016 19,033 7,633 5,452
Sales
U.S. Gov't -- -- 200 -- 5,653 --
Other 93,181 49,886 20,944 21,421 3,451 5,568
59
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Notes to Financial Statements (CONTINUED)
At June 30, 1997, 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, 1997, 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 16 1,922 3,836 210 752 88
Aggregate gross
unrealized loss (3) (2,252) (358) (174) (89) (193)
---------- -------- -------- ---------- -------- --------
Net unrealized
gain (loss) 13 (330) 3,478 36 663 (105)
========== ======== ======== ========== ======== ========
EQUITY EQUITY EQUITY MID INTERNATIONAL
GROWTH VALUE INCOME CAP BALANCED GROWTH
-------- -------- -------- -------- ---------- -------------
(000) (000) (000) (000) (000) (000)
Aggregate gross
unrealized gain 36,769 65,508 33,770 12,939 6,927 2,454
Aggregate gross
unrealized loss (2,525) (2,460) (756) (1,612) (157) (701)
-------- -------- -------- -------- ---------- -------------
Net unrealized
gain (loss) 34,244 63,048 33,014 11,327 6,770 1,753
======== ======== ======== ======== ========== =============
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 invest 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. EXEMPT U.S.
TREASURY PRIME MONEY TREASURY
SECURITIES OBLIGATION MARKET SECURITIES PLUS
---------- ---------- ---------- ---------------
U.S. Gov't. Securities 96.7% 17.9% -- 49.0%
Repurchase Agreements -- 17.5 -- 51.0
Municipal Securities -- -- 99.4% --
Commercial Paper -- 53.3 -- --
Other Short Term
Securities 3.3 11.3 0.6 --
SHORT-TERM FIXED NEW JERSEY INT.-TERM
INV. INCOME MUNI. GOVT.
------------ ---------- -------------- ----------
U.S. Gov't. Securities 92.8% 79.4% -- 94.4%
Repurchase Agreements -- -- -- --
AAA -- -- 53.2% --
AA 0.8 11.6 21.0 --
A 1.7 8.9 10.7 --
BBB -- 0.1 1.1 --
BB -- -- -- --
NR 1.6 -- 11.1 --
All Other 3.1 -- 2.9 5.6
PA
BALANCED MUNI. GNMA
------------ ---------- --------
U.S. Gov't. Securities 27.8% -- 97.1%
Repurchase Agreements -- -- --
AAA -- 68.3% --
AA 6.1 9.8 --
A 1.5 7.7 --
BBB -- 0.4 --
BB -- -- --
NR -- 12.2 --
Common Stock 63.8 -- --
All Other 0.8 1.6 2.9
60
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JUNE 30, 1997 (UNAUDITED)
8. 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 assets which consisted of securities and related receivables, were converted
on a tax-free basis (with the exception of the Summit Bank Employee Benefit Bond
Fund which did not qualify for tax-free treatment). 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 37,351,305 479,925
Pyramid Government Fund 13,328,272 82,578
Pyramid Municipal Fund 27,106,556 994,062
Summit Bank CTF
Tax-Exempt Fund 81,341,717 1,463,259
First Valley Bank Corporate/
Government Income Fund 23,359,209 (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 20,917,589
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
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
61
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Notes
62
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JUNE 30, 1997 (UNAUDITED)
Notes
63
<PAGE>
Notes
64
<PAGE>
The Pillar Funds
Semi-Annual Report
June 30, 1997
Investment Adviser
Summit Bank Investment Management Division
a division of Summit Bank
Administrator
SEI Fund Resources
Oaks, PA 19456
Distributor
SEI Investments Distribution Co.
Oaks, PA 19456
The Pillar Funds is a registered service mark of Summit Bank. Summit Bank is a
service mark of Summit Bancorp. The Pillar Funds are distributed by SEI
Financial Services Company. SEI Financial Services Company is not affiliated
with Summit Bank, Summit Bancorp, or their affiliates. Summit Bank Investment
Management Division serves as investment adviser and
custodian to The Pillar Funds.
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-008-06
<PAGE>
