<PAGE>
SEMI-
ANNUAL REPORT
JUNE 30, 1997
(UNAUDITED)
[LOGO]
BNY HAMILTON FUNDS
- - BNY HAMILTON EQUITY
INCOME FUND
- - BNY HAMILTON LARGE
CAP GROWTH FUND
- - BNY HAMILTON SMALL
CAP GROWTH FUND
- - BNY HAMILTON
INTERNATIONAL
EQUITY FUND
- - BNY HAMILTON
INTERMEDIATE
GOVERNMENT FUND
- - BNY HAMILTON
INTERMEDIATE
INVESTMENT
GRADE FUND
- - BNY HAMILTON
INTERMEDIATE
NEW YORK
TAX-EXEMPT FUND
- - BNY HAMILTON
INTERMEDIATE
TAX-EXEMPT FUND
- - BNY HAMILTON
MONEY FUND
- - BNY HAMILTON
TREASURY
MONEY FUND
BNY HAMILTON FUNDS
<PAGE>
[LOGO] CHAIRMAN'S LETTER
Dear Shareholder:
We are pleased to provide you this consolidated semiannual report for the BNY
Hamilton Funds. In it you will find a recap of an exciting period for the funds.
Low inflation, moderate economic growth and strong corporate profits combined to
keep the bull market in stocks charging, contributing to strong six-month
returns for our equity funds. Despite periods of short-term volatility, the
fixed-income and money markets proved to be relatively stable.
Certainly, it was an auspicious time to expand the BNY Hamilton family of funds.
To provide you an expanded array of equity funds, we launched the BNY Hamilton
Large Cap Growth Fund, the BNY Hamilton Small Cap Growth Fund and the BNY
Hamilton International Equity Fund. For the taxable and tax-exempt fixed-income
segments of your portfolio, we now offer the BNY Intermediate Investment Grade
Fund and BNY Hamilton Intermediate Tax-Exempt Fund. For our institutional
investors, we also have added the BNY Hamilton Treasury Money Fund as a
complement to our existing broad money market fund.
Like the existing BNY Hamilton Funds, each of these new portfolios seeks to own
only high-quality securities and is managed by The Bank of New York. The
International Equity Fund also draws upon the global resources and experience of
Indosuez International Investment Services, subadvisor to the Fund.
The ten BNY Hamilton Funds afford you the opportunity to invest in all three
major asset classes and to create an investment strategy that may help you
attain a steady rate of return while helping to reduce the impact of market
fluctuations. Such diversification can be one of the best defenses over time
against the inevitable volatility in the markets.
Whether you own one or several BNY Hamilton Funds, I encourage you to read the
entire report, for a better understanding of the risks and potential rewards
associated with each of the Funds. Please contact your BNY Hamilton Funds
representative with any questions about the content of this report, the Funds or
how you may combine them to better pursue your financial objectives. If you
would like a prospectus on any of the Funds, please call 1-800-4BNY-FUND
(1-800-426-9363). Please read the prospectus carefully before you invest.
Finally, on behalf of all of us at the BNY Hamilton Funds, thank you for your
continued support. As we enter the second half of 1997, we believe that the BNY
Hamilton Funds provide a prudent investor the breadth of investment choices
needed to construct and maintain a well-balanced investment portfolio.
Sincerely,
[/S/ EDWARD L. GARDNER]
Edward L. Gardner
Chairman of the Board
<PAGE>
[LOGO] INVESTMENT ADVISOR'S LETTER
Dear Shareholder:
We were optimistic on the outlook for the financial markets as 1997 began. Even
following two exceptionally strong years for stocks, we believed that equity
investors in particular still had good reason to be bullish. Six months later,
we continue to feel the same way: This bull market still has room to run, thanks
to a moderately expanding economy, low inflation and investor-friendly
developments in Washington.
A REMARKABLE RUN FOR THE U.S. STOCK MARKET
Stocks extended their sensational performance through the six months ended June
30, 1997. While the Dow Jones Industrial Average (DJIA) suffered a
much-anticipated "correction" in late March and early April that shaved nearly
10% off the index, this pull-back proved not to be the start of a bear market.
Rather, it represented a "breather" for a bull market that is still alive and
well. Very strong economic growth in the first quarter of the year raised
investors' anxiety about rising inflation, but evidence that inflationary
pressures remained under control helped restore their confidence as the second
quarter progressed. The markets have continued to thrive on what is very nearly
an ideal combination of circumstances for investors: steady economic growth and
subdued inflation.
Throughout the period, we maintained that high-quality companies with
predictable earnings streams would be the main beneficiaries of continuing
price-earnings (P/E) expansion (i.e., of investors' willingness to pay higher
prices today for earnings to be received in the future). As it turned out, large
capitalization stocks such as those included in the Standard & Poor's 500
Index--particularly multinational companies and those actively buying back
shares--were the market's leaders during the first half. Most smaller companies,
such as those found in the Russell 2000 index, lagged behind, particularly
during the early part of the year. More recently, leadership within the stock
market is broadening out to include medium and smaller capitalization issues as
well, which is a very healthy development.
A GREATER COMMITMENT TO INTERNATIONAL MARKETS
As the first half progressed, we became increasingly positive about
international equities. While U.S. stocks have substantially outperformed
international stocks over the past few years, we expect international equities
to provide competitive returns as well as an enhanced measure of diversification
going forward. We see exciting investment opportunities in the cyclical
recoveries and early-stage corporate restructurings underway in Western Europe
and Japan as well as in the continuing strong growth in newly industrializing
economies in Southeast Asia, Latin America and Eastern Europe.
BONDS SLOWLY EARNING SOME MUCH-DESERVED RESPECT
While the good news about sustainable, non-inflationary growth in the U.S. was
being reflected in domestic stock prices, fixed income markets remained more
skeptical. After a difficult first quarter when interest rates rose, bonds
rallied in the second quarter to regain almost all of the ground they had given
up. However, relative to projected inflation of 2.0-2.5%, the 400 basis point
"real" return that Treasury Notes provided at the end of June still remained
well above the historical norm. Winning over fixed income investors is taking
time. Memories of 1994, when the bond market posted a negative total return,
continue to haunt bond investors and inflows to bond funds remain at relatively
low levels.
Spreads between the yields available on high-grade fixed-income securities and
lesser quality issues narrowed during the first half of the year, giving
investors little incentive to assume extra risk. Our policy has been to stress
higher-quality
<PAGE>
[LOGO]
issues while moderately extending the average maturity and duration of the
funds. This allowed us to capture additional yield without reducing the overall
quality of the investments.
ALL SYSTEMS ARE STILL GO
Everything is currently going right for the markets. Economic activity remains
firmly on a moderate growth path. Fears of higher inflation are abating.
Corporate profits continue to expand, although the pace may be slowing somewhat.
The Federal Reserve remains vigilant but not trigger-happy, and mutual fund
inflows are strong.
Looking forward, we do not anticipate significant changes in this positive
scenario. While we do not foresee a bear market on the horizon, we know that one
is out there eventually. However, before it makes its presence felt, we expect
leadership in the U.S. equity markets to broaden much further. The "average
stock" (rather than a select number of the very largest stocks) is increasingly
likely to outperform the "market averages". After an extended period of
underperformance, medium and small capitalization domestic stocks and
international equities should begin to provide more competitive returns.
We are still bullish. It is too early to become defensive. Rather, we are
proceeding with caution, and now more than ever, our focus is squarely on
emphasizing strong fundamentals and high earnings reliability in our equity
funds, and high credit quality and careful maturity selection in our
fixed-income funds.
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
QUESTIONS & ANSWERS...................... PAGE 1
BNY HAMILTON EQUITY INCOME FUND
Schedule of Investments................ 15
Statement of Assets and Liabilities.... 20
Statement of Operations................ 20
Statements of Changes in Net Assets.... 21
Financial Highlights................... 22
BNY HAMILTON LARGE CAP GROWTH FUND
Schedule of Investments................ 23
Statement of Assets and Liabilities.... 26
Statement of Operations................ 26
Statement of Changes in Net Assets..... 27
Financial Highlights................... 28
BNY HAMILTON SMALL CAP GROWTH FUND
Schedule of Investments................ 29
Statement of Assets and Liabilities.... 32
Statement of Operations................ 32
Statement of Changes in Net Assets..... 33
Financial Highlights................... 34
BNY HAMILTON INTERNATIONAL EQUITY FUND
Schedule of Investments................ 35
Industry Diversification............... 39
Statement of Assets and Liabilities.... 40
Statement of Operations................ 40
Statement of Changes in Net Assets..... 41
Financial Highlights................... 42
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
Schedule of Investments................ 43
Statement of Assets and Liabilities.... 46
Statement of Operations................ 46
Statements of Changes in Net Assets.... 47
Financial Highlights................... 48
BNY HAMILTON INTERMEDIATE INVESTMENT
GRADE FUND
Schedule of Investments................ PAGE 49
Statement of Assets and Liabilities.... 53
Statement of Operations................ 53
Statement of Changes in Net Assets..... 54
Financial Highlights................... 55
BNY HAMILTON INTERMEDIATE NEW YORK
TAX-EXEMPT FUND
Schedule of Investments................ 56
Statement of Assets and Liabilities.... 60
Statement of Operations................ 60
Statements of Changes in Net Assets.... 61
Financial Highlights................... 62
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
Schedule of Investments................ 63
Statement of Assets and Liabilities.... 73
Statement of Operations................ 73
Statement of Changes in Net Assets..... 74
Financial Highlights................... 75
BNY HAMILTON MONEY FUND
Schedule of Investments................ 76
Statement of Assets and Liabilities.... 82
Statement of Operations................ 82
Statements of Changes in Net Assets.... 83
Financial Highlights................... 84
BNY HAMILTON TREASURY MONEY FUND
Schedule of Investments................ 87
Statement of Assets and Liabilities.... 88
Statement of Operations................ 88
Statement of Changes in Net Assets..... 89
Financial Highlights................... 90
NOTES TO FINANCIAL STATEMENTS............ 91
DIRECTORS AND OFFICERS................... 102
</TABLE>
<PAGE>
[LOGO] BNY HAMILTON EQUITY INCOME FUND
AN INTERVIEW WITH ROBERT G. KNOTT, VICE PRESIDENT AND PORTFOLIO MANAGER
Q. HOW DID THE EQUITY INCOME FUND PERFORM TO DATE IN 1997?
A. The Fund's six-month total return was 14.67% for Institutional Shares and
14.65% for Investor Shares.(1) Though less than the 20.47% gain posted by the
Standard & Poor's 500 Index(2) and slightly below the 15.40% for the Lipper
Equity Income Fund Index,(3) these are very respectable results for a
relatively conservative fund that seeks both growth and income. Its dividend
yield, at 2.2%, was roughly equal to that of the S&P 500.
Q. HOW DID YOU ACHIEVE THESE RESULTS?
A. The Fund owned a wide array of high-quality, large-capitalization,
dividend-paying stocks--the very kind of stocks that were front-runners in
the market during the period. Among the biggest gainers in the portfolio were
the pharmaceuticals stocks, a number of consumer stocks (Avon, Pepsi, CVS and
Borders), financial stocks (Mellon Bank and First Union) and several energy
stocks (Diamond Offshore and Exxon). Most of these companies are prime
examples of businesses that have successfully reshaped themselves to compete
efficiently in the '90s.
Less beneficial were our investments in utilities stocks and real estate
investment trusts (REITs), which represented 13.9% of net assets, and in
convertible securities (19.4%). The uncertainty about inflation and interest
rates and the late-March hike in rates by the Federal Reserve put downward
pressure on the prices of these interest-sensitive holdings. However, they
provide high current income, and we maintained most of our positions. If
interest rates decline, the prices of these securities can be expected to
increase. In the event of a market reversal, the income yield from these
securities would act as a cushion against falling stock prices.
Q. HOW HAVE YOU POSITIONED THE FUND FOR THE FUTURE?
A. The very largest stocks have risen very high, very quickly this year. While
we believe there is still room at the top, we also think that these stocks
are approaching the ceiling. As the third quarter progresses, we are prepared
to take a more defensive position in the Fund. While maintaining our broad
industry diversification, we will weigh the merits of increasing the
convertibles in the Fund and may selectively take profits in some of the
fastest-appreciating drug and consumer growth stocks.
(1) TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THE ORIGINAL COSTS. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS. The quoted performance for the Institutional Shares prior
to their inception on 4/1/97 is based on the performance of the Fund's
Investor Shares, adjusted to reflect fees and expenses. The inception
date for the Equity Income Fund Investor Shares was August 10, 1992.
(2) The S&P 500 is considered representative of the broad U.S market of
large-capitalization stocks.
(3) Lipper indexes are based on the performance of the largest funds within a
given investment objective and do not include multiple share classes of
similar funds. Returns for these indexes are net of fees. Source: Lipper
Analytical Services, Inc.
<TABLE>
<CAPTION>
PERIODS ENDED JUNE 30, 1997 30 DAYS 3 MONTHS 6 MONTHS 1 YEAR 3 YEARS INCEPTION
<S> <C> <C> <C> <C> <C> <C>
BNY HAMILTON EQUITY INCOME FUND
(INSTITUTIONAL SHARES) 4.52% 13.43% 14.67% 25.74% 21.15% 15.12%
LIPPER EQUITY INCOME FUND INDEX 3.77% 13.01% 15.40% 27.14% 21.54% 16.71%
S&P 500 4.40% 17.41% 20.47% 34.56% 28.83% 20.03%
</TABLE>
Note: Returns for BNY Hamilton Funds and Lipper Fund Universe are after fees.
1
<PAGE>
[LOGO] BNY HAMILTON LARGE CAP GROWTH FUND
AN INTERVIEW WITH CHARLES GOODFELLOW, VICE PRESIDENT AND PORTFOLIO MANAGER
Q. HOW DID THE FUND PERFORM DURING THE SIX MONTHS ENDED JUNE 30, 1997?
A. For the first half of 1997, both Institutional Shares and Investor Shares of
the Fund produced a total return of 20.24%.(1) This compares to six-month
total returns for the Standard & Poor's 500 Index of large-capitalization
stocks(2) and the Lipper Growth Fund Index(3) of 20.47% and 15.40%,
respectively.
Q. WHAT FACTORS AFFECTED YOUR PERFORMANCE?
A. There's no question the Fund was positioned in the "sweet spot" of the U.S.
equity markets. Large-cap stocks were the market leaders, and after a period
of underperformance in 1996, growth stocks bounced back to outperform value
stocks. Beyond that, the biggest factor was an overweighting in technology
and financial stocks.
For the first half, the technology segment of the S&P 500 rose 22.5%,
while the technology stocks in the Fund gained approximately 40%. Likewise,
the S&P financials gained 25%, compared to a rise of 32% for the financial
stocks in the portfolio. For the lion's share of the period, the Fund owned
at least one or more of the major technology stocks--such as Intel (3.1% of
net assets), Microsoft (3.3%) or Cisco Systems (2.3%)--that dramatically
outdistanced the market. Among the financial issues the Fund owned were
Federal National Mortgage Association (3.4% of net assets), Travelers Group,
Inc. (3.3%), and American International Group, Inc. (2.6%).
We also owned a number of the very large-cap stocks that led the market
year-to-date, including General Electric. However, not all of our blue-chip
holdings did so well. Our investment in McDonald's proved to be a
disappointment and has since been sold. Hewlett-Packard also had a poor
showing but remains in the portfolio as a core holding. Although McDonald's
strength overseas is unquestioned and unparalleled, the company has lost its
way in the U.S. market and is struggling to define itself. In contrast,
Hewlett Packard is slowly but successfully redefining itself as more than
just the dominant player in the computer printer market.
Another factor in performance was the utility stocks we added early in
the period (to provide slightly higher current income). They are quite
sensitive to interest rates and suffered when rates rose late in the first
quarter.
(1) TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THE ORIGINAL COSTS. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS. The quoted performance includes performance of common and
collective trust fund ("Commingled") accounts advised by The Bank of New
York dating back to 12/31/86 and prior to the Fund's commencement of
operations on 4/1/97, as adjusted to reflect the expenses associated with
mutual funds. The Commingled accounts were not registered with the
Securities and Exchange Commission and, therefore, were not subject to
the investment restrictions imposed by law on registered mutual funds. If
the Commingled accounts had been registered, the Commingled accounts'
performance may have been adversely affected. The adviser has agreed to
assume a portion of the expenses for this Fund. Had expenses not been
assumed, total return and the average annual return would have been
lower. This voluntary waiver and assumption of expenses may be modified
or terminated at any time, which would reduce the Fund's performance.
(2) The S&P 500 is considered representative of the broad U.S market of
large-capitalization stocks.
(3) Lipper indexes are based on the performance of the largest funds within a
given investment objective and do not include multiple share classes of
similar funds. Returns for these indexes are net of fees. Source: Lipper
Analytical Services, Inc.
2
<PAGE>
[LOGO]
Q. WHAT DO YOU LOOK FOR WHEN ADDING STOCKS TO THE PORTFOLIO?
A. The Fund is not meant to match or reflect any index. We are conscious of our
weighting compared to the S&P 500 but give more emphasis to how economic
change and interest rates will impact various industries. This data is
utilized to set our own targets for industry exposures, then we employ
bottom-up research to choose individual securities. The industry weightings
serve as guidelines. The more important consideration is finding companies
that are growing fast on an absolute basis, or those growing faster than Wall
Street realizes. We're looking for very reliable growth in earnings and the
potential for positive surprises.
Q. WHAT IS YOUR OUTLOOK?
A. The economic fundamentals continue to look solid. All the building
blocks--moderate growth, historically low inflation, respectable corporate
profits--remain in place, so the market should continue to rise. The question
is: How high? By our calculations, if the market continues on its first half
path, stocks valuations will quickly become overextended and there would be
little fundamental reason for them to continue to climb. However, if
investors become confident enough, the market can "blow through" those levels
on the upside.
We're not pulling out, but we do believe that the biggest companies
cannot continue to rise as they have. Recently, we have moved down the
market-capitalization scale slightly. We're still buying large-cap companies,
but not as large as before.
<TABLE>
<CAPTION>
PERIODS ENDED JUNE 30,
1997 30 DAYS 3 MONTHS 6 MONTHS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C> <C> <C> <C> <C>
BNY HAMILTON LARGE CAP
GROWTH FUND
(INSTITUTIONAL SHARES) 4.98% 18.32% 20.24% 33.76% 26.77% 19.07% 13.41%
LIPPER GROWTH FUND INDEX 3.74% 15.80% 15.40% 25.57% 23.10% 22.86% 12.72%
S&P 500 4.40% 17.41% 20.47% 34.56% 28.83% 19.74% 14.63%
</TABLE>
Note: Returns for BNY Hamilton Funds and Lipper Fund Universe are after fees.
3
<PAGE>
[LOGO] BNY HAMILTON SMALL CAP GROWTH FUND*
AN INTERVIEW WITH JOHN LUI, VICE PRESIDENT AND PORTFOLIO MANAGER
Q. PLEASE GIVE AN OVERVIEW OF THE FUND'S RESULTS YEAR TO DATE.
A. Through June 30, 1997, the Fund delivered a total return of 4.68% for both
Institutional Shares and Investor Shares.(1) In comparison, the Russell 2000
Index(2) of small-capitalization stocks gained 10.20% during the period, and
the Lipper Small-Cap Fund Index(3) had a total return of 6.04%.
The Fund focuses on small-capitalization growth stocks, which can be very
volatile, as the two most recent quarters clearly demonstrated. Like the vast
majority of small-cap funds, during the first quarter the Fund declined (by
14.2%), only to rebound vigorously (by 22.30%) in the second three months.
Q. WHY WERE SMALL-CAP SECURITIES SO VOLATILE DURING THE PERIOD?
A. Throughout the early months, fears of higher inflation raised the specter of
higher interest rates. For a smaller company, a rise in rates may have a
greater relative impact on the cost of doing business than for a larger firm.
This made investors wary of small-cap stocks. With the Federal Reserve's
0.25% boost to a key short-term interest rate in late March, that caution
reached a crisis point, triggering a sell-off in small-caps and
indiscriminate contraction of price-earnings (P/E) ratios. Shortly
thereafter, as fears of further rate hikes diminished and investor confidence
returned, the small-cap market made a sharp turn for the better.
Q. HOW DID YOU MANAGE THE FUND THROUGH THIS PERIOD OF UNCERTAINTY?
A. Actually, we made few if any adjustments to reflect the market's mood. Our
philosophy is to buy good small businesses and hold onto them as they grow,
provided they continue to meet specific criteria. The companies we choose may
be part of the Russell 2000 Index, or any company with a market
capitalization at the time of purchase of $100 million to $1.5 billion.
More importantly, they must exhibit above-average earnings growth
potential and the ability to exceed consensus estimates of their growth.
Beyond that, they need a sound business model, dominant market position,
visionary management, a shareholder orientation and conservative accounting
practices. We want to marry these companies for the long run, not just date
them for a short while.
* Small-capitalization funds typically carry additional risks, since smaller
companies historically have a experienced a greater degree of market
volatility
(1) TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THE ORIGINAL COSTS. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS. The quoted performance includes performance of common and
collective trust fund ("Commingled") accounts advised by The Bank of New
York dating back to 12/31/90 and prior to the Fund's commencement of
operations on 4/1/97, as adjusted to reflect the expenses associated with
mutual funds. The Commingled accounts were not registered with the
Securities and Exchange Commission and, therefore, were not subject to
the investment restrictions imposed by law on registered mutual funds. If
the Commingled accounts had been registered, the Commingled accounts'
performance may have been adversely affected. The adviser has agreed to
assume a portion of the expenses for this Fund. Had expenses not been
assumed, total return and the average annual return would have been
lower. This voluntary waiver and assumption of expenses may be modified
or terminated at any time, which would reduce the Fund's performance.
(2) The Russell 2000 Index is considered representative of the broad U.S
market of small-capitalization stocks.
(3) Lipper indexes are based on the performance of the largest funds within a
given investment objective and do not include multiple share classes of
similar funds. Returns for these indexes are net of fees. Source: Lipper
Analytical Services, Inc.
4
<PAGE>
[LOGO]
Q. PLEASE DESCRIBE A CURRENT HOLDING THAT FITS YOUR INVESTMENT CRITERIA.
A. The Fund has a relatively high percentage of assets (as compared to the
Russell 2000 Index) invested in the consumer nondurables and services
sectors. This is where we find many of what we call the "Goliaths of
Davids"-- businesses that are the strongest among the small-cap competitors
in an industry. In these sectors, relatively little capital is required to
dominate a niche, so companies can become "Goliaths" quickly.
Currently, one of our largest holdings is Ha-Lo Industries, Inc. (4.1% of
net assets at June 30), the largest full-service distributor of promotional
and specialty advertising products. Ha-Lo has a market capitalization of $460
million. It is growing at an internal rate (i.e., through expanding product
lines and sales) of 25%-30% annually. This is augmented by acquisitions that
bring its growth rate to approximately 35% per year.
Another major holding is Equity Corp. International (ECI) (4.4%), a
consortium of funeral homes and cemeteries in communities of less than
75,000. ECI buys family-owned business and allows them to operate
independently while taking advantage of centralized services and greater
purchasing power and distribution systems.
Q. WHAT ROLE DO TECHNOLOGY STOCKS PLAY IN THE FUND'S PORTFOLIO?
A. In our view, technology is a cyclical growth industry. We try to use these
companies selectively during the expansion phase of the market cycle. In
general, we prefer the secular growth businesses like Equity Corp.
International, which have the potential to appreciate more steadily over
time.
Q. WHAT DO YOU FORESEE FOR THE SECOND HALF OF 1997?
A. The generally accepted view is that investors will begin looking beyond the
large-cap stocks for growth opportunities in the second half. So, after
several years of underperforming large-cap equities, medium- and
small-capitalization securities may have the potential to take the lead.
Whether this occurs or not will make little difference to how we manage
the Fund. We will still be looking for individual companies that have solid,
fundamental reasons to grow. By sticking to this approach last year, we
outperformed the S&P 500, so we know from prior experience that we can beat
the odds if we stick to our strategy.
<TABLE>
<CAPTION>
PERIODS ENDED JUNE 30,
1997 30 DAYS 3 MONTHS 6 MONTHS 1 YEAR 3 YEARS 5 YEARS INCEPTION
<S> <C> <C> <C> <C> <C> <C> <C>
BNY HAMILTON SMALL CAP
GROWTH FUND (INSTITUTIONAL
SHARES) 5.98% 22.30% 4.68% 12.92% 22.37% 18.80% 19.32%
LIPPER SMALL CAP FUND
INDEX 4.91% 17.06% 6.04% 6.35% 20.33% 18.64% 18.82%
RUSSELL 2000 SMALL STOCK
INDEX 4.29% 16.21% 10.20% 16.33% 20.06% 17.87% 20.34%
</TABLE>
Note: Returns for BNY Hamilton Funds and Lipper Fund Universe are after fees.
5
<PAGE>
[LOGO] BNY HAMILTON INTERNATIONAL EQUITY FUND*
AN INTERVIEW WITH JILL CURRIE, VICE PRESIDENT AND PORTFOLIO MANAGER
Q. HOW WOULD YOU DESCRIBE THIS BRAND-NEW ADDITION TO THE BNY HAMILTON FAMILY OF
FUNDS?
A. The International Equity Fund was launched on April 1 as a broadly
diversified international fund. While primarily invested in developed
countries, the Fund may participate in faster-growing emerging economies when
the opportunities are attractive. Wherever we invest, we emphasize
large-capitalization, "blue chip" stocks, which we feel are most likely to
benefit from global change. With their economies of scale, they can more
efficiently apply new technologies and easily expand into new markets as
trade barriers fall.
Q. HOW DID THE FUND PERFORM IN ITS INITIAL QUARTER?
A. From April 1 to June 30, Institutional Shares of the Fund posted a total
return of 13.30%.(1) In comparison, the Morgan Stanley Capital International
(MSCI) Europe, Australasia and Far East (EAFE) Index rose 13.05% during the
second quarter.(2) The Lipper International Fund Index gained 11.19%.(3)
Investor Shares of the Fund, introduced on May 1, chalked up a 10.99%
total return through June 30.(1)
Q. WHAT WAS YOUR STRATEGY FOR BUILDING THE FUND'S PORTFOLIO?
A. We ensured that the Fund was widely diversified across 24 countries. Over 90%
of assets are invested in the developed nations of Europe and Japan. Many of
the opportunities we see here are related to favorable company dynamics, but
economic recovery should also provide support for these markets.
For added growth potential, we invested approximately 7% of net assets in
emerging markets around the world, ranging from Greece and Hungary to China,
Mexico and Argentina, among others.
Q. WHERE WERE YOU MOST AND LEAST SUCCESSFUL?
A. Our Asian holdings were the largest contributors to total return. According
to MSCI, the Japanese equity market advanced 23% during the quarter. Unlike
many international funds, we were not drastically underweighted relative to
the EAFE Index and thus benefited from the market's rebound. Likewise, we
owned Chinese stocks trading on the Hong Kong exchange (so-called "red chip"
stocks) that performed extraordinarily well. More established Hong Kong
companies also boosted performance. One was HSBC Holdings, a bank with
operations on four continents. HSBC is very solid, with a high capitalization
ratio.
European stocks lagged behind the EAFE Index in the second quarter, due
to concerns over European monetary union (EMU) and uncertainty following the
Socialist victory in France. Nevertheless, we feel confident that the
investment environment in Europe is positive. Falling interest rates are
driving savings out of bonds and into equities, and corporations are taking
steps to increase shareholder value. One example is Novartis, the company
* International investing involves increased risk and volatility.
(1) TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THE ORIGINAL COSTS. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS. The adviser has agreed to assume a portion of the
expenses for this Fund. Had expenses not been assumed, total return and
the average annual return would have been lower. This voluntary waiver
and assumption of expenses may be modified or terminated at any time,
which would reduce the Fund's performance.
(2) The MSCI EAFE Index is considered representative of the equity markets in
Europe, Australia, Asia and the Far East.
(3) Lipper indexes are based on the performance of the largest funds within a
given investment objective and do not include multiple share classes of
similar funds. Returns for these indexes are net of fees. Source: Lipper
Analytical Services, Inc.
6
<PAGE>
[LOGO]
created by the merger of CIBA-GEIGY and Sandoz. It is one of the world's
major healthcare companies, with great long-term growth prospects. We are
seeing gains from restructuring and the introduction of new products.
Q. AS WE MOVE INTO THE SECOND HALF OF 1997, WHAT DO YOU FORESEE FOR THE FUND?
A. We look to continue to invest new assets in a broad spectrum of countries
where market conditions are steadily improving.
At this juncture, we are comfortable that Japan will take steps to
further restructure its economy. Valuations there have become more comparable
to those in the United States and Europe. In the major European markets,
there has been an increase in liquidity as central banks have dropped
interest rates, and demand for equities by institutional investors is on the
rise. We look for cyclical stocks in the major countries to perform well and
see new possibilities in smaller countries and Eastern Europe.
We are also quite positive about Hong Kong (the gateway to China for
finance and trade) and Latin (currently benefiting from low interest rates
and strength in the U.S.). We are less optimistic about Thailand and other
Asian countries; currency devaluations will cause economic dislocation and
put pressure on corporate profits.
<TABLE>
<CAPTION>
PERIODS ENDED JUNE 30,
1997 30 DAYS 3 MONTHS 6 MONTHS 1 YEAR 3 YEARS INCEPTION
<S> <C> <C> <C> <C> <C> <C>
BNY HAMILTON
INTERNATIONAL EQUITY
FUND (INSTITUTIONAL
SHARES)* 4.71% 13.30% -- -- -- 13.30%
LIPPER INTERNATIONAL
FUND INDEX 4.80% 11.19% 13.98% 20.01% 12.59% 11.19%
MSCI EAFE 5.54% 13.05% 11.36% 13.16% 9.44% 13.05%
</TABLE>
*Inception Date April 1, 1997
Note: Returns for BNY Hamilton Funds and Lipper Fund Universe are after fees.
7
<PAGE>
[LOGO] BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
AN INTERVIEW WITH MARK HEMENETZ, SENIOR VICE PRESIDENT AND PORTFOLIO MANAGER
Q. HOW DID THE INTERMEDIATE GOVERNMENT FUND PERFORM DURING THE FIRST HALF OF
1997?
A. Institutional Shares of the Fund, which were introduced on April 1, 1997,
delivered a total return of 2.44% through June 30. Investor Shares had a
six-month total return of 2.38%.(1) In comparison, the Lehman Brothers
Intermediate Government Bond Index(2) advanced 2.76% during the first half of
1997, and the Lipper Intermediate U.S. Government Bond Fund Index(3) gained
2.64%.
Q. PLEASE DESCRIBE WHAT HAPPENED IN THE GOVERNMENT BOND MARKET DURING THE
PERIOD.
A. Interest rates rose during the first quarter, pushing bond returns into
negative territory. Investors were unnerved by strong economic growth and the
potential this held to rekindle inflation. In contrast to the first quarter,
interest rates fell across the yield curve in the second quarter of 1997 as
evidence confirmed that the economy was slowing from its torrid pace earlier
in the year. Key economic releases during the period included three
consecutive reports of declining retail sales and the fifth consecutive
report of a decline in the Producer Price Index. To the surprise of many, the
year-over-year inflation rate, as measured by the Consumer Price Index (CPI),
declined to 2.2%. At its May meeting, the Federal Reserve took no action to
raise the Federal Funds rate from 5.50%, pushing out the expected timing of
any additional rate hikes.
The change in the economic landscape carried over to bond market
psychology, pushing long-term rates down from over 7% in April. The bond
market also acknowledged one of the benefits of the robust economy, namely
that higher tax receipts were reducing the federal deficit below expected
levels and reducing the U.S. government's need to borrow. The drop in yields
moved year-to-date returns for all maturities to positive levels. Investors
continued to focus on securities with greater yields, which resulted in
corporate and mortgage-backed security spreads (vs. U.S. Treasuries) being
near their narrowest ever. Mortgages were not hurt by a slightly steeper
yield curve as the spread between two- and thirty-year maturities expanded
from 68 basis points to 72 basis points.
Q. WHAT WAS YOUR PORTFOLIO MANAGEMENT STRATEGY DURING THE FIRST HALF?
A. Portfolio activity centered on relative value trades between mortgage-backed,
agency and Treasury issues. At the end of the period, more than 97% of the
Fund's net assets were invested in U.S. government and agency securities,
collateralized mortgage obligations, and mortgage backed securities; its
duration stood at 3.47 years and its average maturity was 4.58 years.
Q. WHAT ARE YOUR EXPECTATIONS FOR THE REMAINDER OF 1997?
A. We think intermediate-term rates can move still lower over time as investors
gain more appreciation for income in an economy that can expand without
higher inflation. As such, we are maintaining a duration for the Fund that is
longer than its benchmark, the Lehman Brothers. Intermediate Government Bond
Index.
(1) TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THE ORIGINAL COSTS. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS. The quoted performance for Institutional Shares prior to
4/1/97 is based on the performance of Investor Shares, adjusted to
reflect fees and expenses. The adviser has agreed to assume a portion of
the expenses for this Fund. Had expenses not been assumed, total return
and the average annual return would have been lower. This voluntary
waiver and assumption of expenses may be modified or terminated at any
time, which would reduce the Fund's performance.
(2) Lehman Brothers indexes represent broad market averages for fixed-income
securities.
(3) Lipper indexes are based on the performance of the largest funds within a
given investment objective and do not include multiple share classes of
similar funds. Returns for these indexes are net of fees. Source: Lipper
Analytical Services, Inc.
<TABLE>
<CAPTION>
PERIODS ENDED JUNE 30, 1997 30 DAYS 3 MONTHS 6 MONTHS 1 YEAR 3 YEARS INCEPTION
<S> <C> <C> <C> <C> <C> <C>
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
(INSTITUTIONAL SHARES) 0.90% 2.84% 2.44% 6.41% 6.83% 4.76%
LIPPER INTERMEDIATE U.S. GOVERNMENT FUNDS INDEX 1.04% 3.20% 2.64% 6.92% 6.94% 5.40%
LEHMAN INTERMEDIATE GOVERNMENT INDEX 0.86% 2.80% 2.76% 6.95% 7.19% 5.81%
</TABLE>
Note: Returns for BNY Hamilton Funds and Lipper Fund Universe are after fees.
8
<PAGE>
[LOGO] BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
AN INTERVIEW WITH CHRISTOPHER CAPONE, VICE PRESIDENT AND PORTFOLIO MANAGER
Q. HOW DID THE FUND PERFORM IN THE FIRST HALF OF 1997?
A. The Intermediate Investment Grade Fund posted a total return of 2.16% through
June 30, 1997, for Institutional Shares; 2.12% for Investor Shares.(1) These
compare to total returns of 2.83% for the Lehman Brothers. Intermediate
Government/Corporate Bond Index(2) and 2.82% for the Lipper Intermediate
Investment Grade Fund Index.(3) During the second quarter, the Fund far
outpaced its Lehman Brothers Benchmark and performed in line with its Lipper
benchmark.
Q. HOW WOULD YOU DESCRIBE THE INTERMEDIATE-TERM BOND MARKETS DURING THIS PERIOD?
A. Interest rates rose across the board during the first quarter of 1997 as the
Federal Reserve increased the Federal Funds rate 0.25% to 5.5%. Bond market
psychology turned decidedly negative, and many investors switched to cash and
cash equivalents. Returns for securities with maturities exceeding three
years were negative. Ten- and thirty-year Treasury bonds returned -2.27% and
-4.27%, respectively, in the first quarter. Investors focused instead on
securities with greater yields, such as corporate bonds and mortgage-backed
securities. While the difference in yields between high- and low-quality
corporate bonds widened slightly due to volatility in the stock market, the
spreads on mortgage-backed securities narrowed to their lowest levels ever.
Interest rates then fell substantially in the second quarter as evidence
confirmed that the economy was still growing at a moderate and
non-inflationary pace. The change in the economic landscape carried over to
the bond market, pushing long-term rates down. The drop in yields moved
year-to-date returns for all maturities into positive territory, with most
clustered between 2.50% and 2.75%. Investors continued to focus on securities
with greater yields, bidding up the prices and bringing down the yields on
corporate and mortgage-backed issues.
Q. HOW DID YOU POSITION THE PORTFOLIO DURING THIS PERIOD?
A. The Fund maintained a relatively long duration (a measure of sensitivity to
interest rates) and its emphasis on investment grade securities (average
rating: AA) throughout the period. While both placed it at a short-term
disadvantage to its peers in the Lipper universe, we felt it was more
important to protect the fund's credit quality (a valuable cushion in bad
times) and to keep it positioned for additional rate declines. We continue to
believe that intermediate-term rates can move still lower over time as bond
investors acknowledge that the economy can expand without higher inflation.
(1) TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THE ORIGINAL COSTS. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS. The quoted performance for Institutional Shares includes
performance of common and collective trust fund ("Commingled") accounts
advised by The Bank of New York dating back to 12/31/86 and prior to the
Fund's commencement of operations on 4/1/97, as adjusted to reflect the
expenses associated with mutual funds. The Commingled accounts were not
registered with the Securities and Exchange Commission and, therefore,
were not subject to the investment restrictions imposed by law on
registered mutual funds. If the Commingled accounts had been registered,
the Commingled accounts' performance may have been adversely affected.
(2) Lehman Bros. indexes represent broad market averages for fixed-income
securities.
(3) Lipper indexes are based on the performance of the largest funds within a
given investment objective and do not include multiple share classes of
similar funds. Returns for these indexes are net of fees. Source: Lipper
Analytical Services, Inc.
9
<PAGE>
[LOGO]
Q. THE FUND'S AVERAGE COUPON STOOD AT APPROXIMATELY 7% AT JUNE 30, COMPARED TO
6.15% TO 6.25% FOR INTERMEDIATE TREASURIES. HOW DID YOU ACHIEVE THIS HIGHER
INCOME STREAM?
A. Compared to the indexes, the Fund is overweighted in corporate bonds because
we think they represent good relative value. Reasonable levels of economic
activity and corporate cost-consciousness add up to the ability to repay
corporate debt, so there's little incremental risk in high-quality corporates
these days. We also made selective use of mortgage-backed securities and
well-structured collateralized mortgage obligations (CMOs) to enhance the
income stream. Finally, we focused on very small portions or segments of the
yield curve, where anomalies gave us the opportunity to pick up extra yield
without added risk.
Q. WHAT IS YOUR CURRENT OUTLOOK?
A. We plan to maintain our long-to-the-benchmark duration, in the belief that
rates may decline further. With year-over-year inflation, as measured by the
Consumer Price Index, at 2.2%, and capacity growth continuing to outstrip
demand, we look for a continuation of the slow-growth, low-inflation scenario
that could bring rates down. Conversely, we see no compelling reason why
rates would rise. Therefore, we are maintaining our bullish stance, which
would provide greater capital appreciation if rates fall.
<TABLE>
<CAPTION>
PERIODS ENDED JUNE 30, 1997 30 DAYS 3 MONTHS 6 MONTHS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C> <C> <C> <C> <C>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
(INSTITUTIONAL SHARES) 1.10% 3.26% 2.16% 6.91% 7.46% 6.03% 7.26%
LIPPER INTERMEDIATE INVESTMENT GRADE FUNDS INDEX 1.15% 3.41% 2.82% 7.61% 7.77% 6.66% NA
LEHMAN INTERMEDIATE GOVERNMENT CORPORATE BOND
INDEX 0.91% 2.95% 2.83% 7.22% 7.51% 6.49% 8.16%
</TABLE>
Note: Returns for BNY Hamilton Funds and Lipper Fund Universe are after fees.
10
<PAGE>
[LOGO] BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
AN INTERVIEW WITH COLLEEN FREY, VICE PRESIDENT AND PORTFOLIO MANAGER
Q. WHAT WAS THE FUND'S TOTAL RETURN FOR THE SIX MONTHS ENDED JUNE 30, 1997?
A. Institutional Shares of the Fund returned a total of 2.22% in the first half
of the year, while Investor Shares had a total return of 2.16%.(1) This
compares to a 2.33% total return for the Lehman Brothers Five-Year General
Obligation Municipal Bond Index(2) and a 2.63% average total return for the
Lipper New York Intermediate Municipal Debt Fund Index.(3)
Q. HOW WOULD YOU CHARACTERIZE THE MUNICIPAL BOND MARKET DURING THIS PERIOD?
A. Anxiety over a potential flat tax--which was much talked of in Congress in
1995 and 1996--was well behind us by the time 1997 began. This allowed the
municipal bond universe to focus on the broader concerns of the fixed-income
markets. Economic issues dominated the market as it responded to growing
concerns over the possibility of higher inflation going forward, and to the
Federal Reserve's rate increase late in the first quarter. The fears were
calmed by the end of the second quarter as data indicating moderate growth
and low inflation began to resurface.
Q. HOW DID YOU POSITION THE PORTFOLIO IN RESPONSE TO THE MARKET?
A. As our fixed-income investment strategy has been based on a scenario of
moderate economic growth and low inflation, we took the rise in rates during
this first part of the year as an opportunity to trade some cash reserves and
short-maturity holdings for securities in the seven- to 11-year range. The
average maturity was 5.9 years as of June 30, 1997, compared to 5.3 years at
the beginning of the period.
Q. WHAT IS YOUR OUTLOOK?
A. We continue to emphasize high-quality issues, as yields between quality
sectors are narrow. Lower-rated issues are not providing sufficient
compensation to investors for the added risk.
(1) TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THE ORIGINAL COSTS. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS. The quoted performance for Institutional Shares of the
Fund prior to their inception on 4/1/97 is based on the performance of
the Fund's Investor Shares, adjusted to reflect fees and expenses. The
since-inception date for Investor Shares of the Fund was August 10, 1992.
The adviser has agreed to assume a portion of the expenses for this Fund.
Had expenses not been assumed, total return and the average annual return
would have been lower. This voluntary waiver and assumption of expenses
may be modified or terminated at any time, which would reduce the Fund's
performance.
(2) Lehman Brothers indexes represent broad market averages for fixed-income
securities.
(3) Lipper indexes are based on the performance of the largest funds within a
given investment objective and do not include multiple share classes of
similar funds. Returns for these indexes are net of fees. Source: Lipper
Analytical Services, Inc.
<TABLE>
<CAPTION>
PERIODS ENDED JUNE 30, 1997 30 DAYS 3 MONTHS 6 MONTHS 1 YEAR 3 YEARS INCEPTION
<S> <C> <C> <C> <C> <C> <C>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT
FUND (INSTITUTIONAL SHARES) 0.92% 2.51% 2.22% 5.80% 5.34% 4.60%
LIPPER NEW YORK INTERMEDIATE MUNICIPAL DEBT
FUND AVERAGE 0.97% 2.82% 2.63% 6.68% 6.05% 5.43%
LEHMAN 5 YEAR G.O. MUNI BOND INDEX 0.88% 2.49% 2.33% 6.26% 6.29% 5.71%
</TABLE>
Note: Returns for BNY Hamilton Funds and Lipper Fund Universe are after fees.
11
<PAGE>
[LOGO] BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
AN INTERVIEW WITH JEFFREY NOSS, VICE PRESIDENT AND PORTFOLIO MANAGER
Q. HOW DID THE FUND PERFORM IN THE SIX MONTHS ENDED JUNE 30TH?
A. The Fund's total returns for the first half of 1997 were 1.82% for
Institutional Shares and 1.77% for Investor Shares.(1) In comparison, the
Lehman Brothers Five-Year General Obligation Municipal Bond Index advanced
2.33%,(2) and the Lipper Intermediate Municipal Bond Fund Index posted a
total return of 2.48%.(3)
Q. WHAT WERE THE MOST SIGNIFICANT EVENTS IN THE FUND DURING THE FIRST HALF OF
THE YEAR?
A. The Fund was converted from a common trust fund to a mutual fund on April 1.
As a result of this conversion as well as inflows of new cash from other
converted common trusts and mutual fund investors, our cash levels were
higher than normal. Had we been more fully invested throughout the six
months, our results might have been stronger.
As it was, we bought on weakness in the market in mid-April (following
the Federal Reserve's elevation of the Federal Funds rate by 0.25% in late
March) and lengthened the average maturity and duration of the portfolio
throughout the second quarter.
Q. WHY IS YOUR STRATEGY REGARDING CREDIT QUALITY?
A. We feel its essential to keep the portfolio credit quality high. The present
narrow spreads in yields between high-and lower-quality issues provide us no
incentive to reduce our quality level. Rather than increase yields by buying
lesser-quality issues, we bought longer-term securities of better quality,
which were quite inexpensive compared to Treasuries.
We also focused on very safe securities, such as escrowed sinking fund
bonds. They provide excellent price stability and can be purchased at yields
30 to 50 basis points higher than other, comparable municipal issues. At June
30, the Fund's average maturity was 7.9 years; its duration, 6.0 years; and
its average coupon, 5.84%. It held issues from 27 states.
Q. WHAT ARE YOUR PLANS FOR THE FUND DURING THE SECOND HALF OF THE YEAR?
A. As investors grow more confident that the moderate inflation and growth
scenario is intact, we think interest rates could drop modestly. We will
maintain our existing maturity and duration and continue to seek out
high-quality opportunities to boost the Fund's income.
(1) TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THE ORIGINAL COSTS. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS. The quoted performance for Institutional Shares includes
performance of common and collective trust fund ("Commingled") accounts
advised by The Bank of New York dating back to 12/31/86 and prior to the
Fund's commencement of operations on 4/1/97, as adjusted to reflect the
expenses associated with mutual funds. The Commingled accounts were not
registered with the Securities and Exchange Commission and, therefore,
were not subject to the investment restrictions imposed by law on
registered mutual funds. If the Commingled accounts had been registered,
the Commingled accounts' performance may have been adversely affected.
(2) Lehman Brothers indexes represent broad market averages for fixed-income
securities.
(3) Lipper indexes are based on the performance of the largest funds within a
given investment objective and do not include multiple share classes of
similar funds. Returns for these indexes are net of fees. Source: Lipper
Analytical Services, Inc.
<TABLE>
<CAPTION>
PERIODS ENDED JUNE 30, 1997 30 DAYS 3 MONTHS 6 MONTHS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C> <C> <C> <C> <C>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
(INSTITUTIONAL SHARES) 0.86% 2.22% 1.82% 5.88% 5.28% 4.98% 6.29%
LIPPER INTERMEDIATE MUNICIPAL FUND INDEX 0.90% 2.57% 2.48% 6.43% 6.06% 5.77% 6.78%
LEHMAN 5 YEAR G.O. MUNI BOND INDEX 0.88% 2.49% 2.33% 6.26% 6.29% 5.90% 6.60%
</TABLE>
Note: Returns for BNY Hamilton Funds and Lipper Fund Universe are after fees.
12
<PAGE>
[LOGO] BNY HAMILTON MONEY FUND
AN INTERVIEW WITH RICHARD KLINGMAN, ASSISTANT VICE PRESIDENT AND PORTFOLIO
MANAGER
Q. WHAT WERE THE YIELD AND TOTAL RETURN FOR THE FUND AS OF JUNE 30TH?
A. For the six months ended June 30, 1997, Hamilton Shares of the Fund (for
institutional investors) delivered an average annualized total return of
5.31%. Hamilton Premier Shares (for institutions with servicing agreements)
earned 5.05%, and Hamilton Classic Shares (for retail investors) advanced
4.64%.(1) The seven-day current and effective yields for the Hamilton Shares
on June 30 were 5.41% and 5.56%, respectively. For Hamilton Premier Shares,
they equaled 5.15% and 5.29%, respectively; and for the Hamilton Classic
Shares, 4.78% and 4.89%, respectively.(2)
Q. WHAT ARE YOUR GOALS IN MANAGING THIS FUND?
A. We seek to provide high current income while preserving investors' capital
and maintaining a very high level of liquidity. Toward that end, we invest
almost exclusively in securities issued by the U.S. government and its
agencies (11.97% of net assets as of 6/30/97), top-rated commercial paper
(37.13%) and repurchase agreements (38.33%). This emphasis on quality has
earned the Fund a AAAm rating from Standard & Poor's Corporation. This rating
is historical and signifies that the Fund's safety is excellent and that it
has a superior capacity to maintain its $1.00 net asset value per share. Of
course, there can be no assurance that it will do so.
Q. WHAT HAPPENED TO SHORT-TERM INTEREST RATES DURING 1997 AND HOW DID THIS
IMPACT THE FUND?
A. The Federal Funds rate, a key short-term interest rate set by the Federal
Reserve, began the year at 5.25% and ended the period at 5.50%. The effect on
the money markets and the Fund was slight, since the markets had already
factored in the rise by early in the first quarter. We made only minor
adjustments to the portfolio and kept the Fund's average maturity very close
to its current target of 50 days. At the end of the period, the Fund's
average maturity was 52 days.
Q. WHAT IS YOUR OUTLOOK?
A. It might best be summed up by the old adage, "The more things change, the
more they stay the same." We expect investors to realize that inflation is on
an extended holiday and is no threat to the current moderate-growth, low-
inflation environment. That should keep interest rates quite stable or, at
most, exert a slight downward pressure.
(1) TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE
RESULTS.
(2) YIELDS WILL FLUCTUATE WITH CHANGES IN MARKET CONDITIONS, AND THERE CAN BE
NO ASSURANCE THAT THE FUND WILL BE ABLE TO MAINTAIN A STABLE NAV OF
$1.00. AN INVESTMENT IN THE FUND IS NEITHER INSURED NOR GUARANTEED BY THE
U.S. GOVERNMENT.
13
<PAGE>
[LOGO] BNY HAMILTON TREASURY MONEY FUND
AN INTERVIEW WITH RICHARD KLINGMAN, ASSISTANT VICE PRESIDENT AND PORTFOLIO
MANAGER
Q. WHAT WERE THE YIELD AND TOTAL RETURN FOR THE FUND?
A. From the Fund's inception as a mutual fund on April 1, 1997, through June 30,
1997, Hamilton Shares of the Fund delivered an average annualized return of
5.15%. Hamilton Premier Shares gained a total of 4.90%.(1) The seven-day
current and effective yields for the Hamilton Shares at 6/30/97 were 5.18%
and 5.31%, respectively. For Hamilton Premier Shares, they equaled 4.93% and
5.05%, respectively.(2)
Q. WHAT IS THE PORTFOLIO COMPOSITION?
A. The Fund's average maturity on June 30 was 8 days. This Fund must invest
solely in short-term fixed-income securities issued by the U.S. Treasury or
securities collateralized by obligations of the U.S. Treasury. At the end of
the second quarter, 31.5% of total net assets were invested in U.S. Treasury
bills, 37.1% were invested in repurchase agreements backed by U.S. Treasury
securities, and 31.4% in other cash receivables.
Q. WHY DO YOU HAVE SUCH A HIGH INVESTMENT IN REPURCHASE AGREEMENTS?
A. Because they are fully collateralized by U.S. Treasuries, the repurchase
agreements present almost no incremental risk while providing additional
yield. Also, they are very short-term and liquid. Finally, in the current
interest rate environment, we do almost as well from a yield standpoint
buying these one-day securities as we would if we bought six-month
Treasuries.
Q. WHAT IS YOUR OUTLOOK FOR THE MONEY MARKETS?
A. We look for very little change in short-term interest rates during the coming
months. Investors have realized that the glass is half-full, not half-empty,
so the nervousness that drove up rates in the first quarter should not be a
factor in the second half of the year.
(1) TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE
RESULTS.
(2) YIELDS WILL FLUCTUATE WITH CHANGES IN MARKET CONDITIONS, AND THERE CAN BE
NO ASSURANCE THAT THE FUND WILL BE ABLE TO MAINTAIN A STABLE NAV OF
$1.00. AN INVESTMENT IN THE FUND IS NEITHER INSURED NOR GUARANTEED BY THE
U.S. GOVERNMENT. THE FUND IS CURRENTLY WAIVING CERTAIN FEES. HAD FEES NOT
BEEN WAIVED, THE SEVEN-DAY CURRENT YIELD WOULD HAVE BEEN LOWER.
14
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS--76.5%
AIRCRAFT MANUFACTURING--2.0%
200,000 Boeing Co. ........................ $ 10,612,500
------------
BANKING--5.4%
110,000 Chase Manhattan Corp. ............. 10,676,875
110,000 First Union Corp. ................. 10,175,000
190,000 Mellon Bank Corp. ................. 8,573,750
------------
29,425,625
------------
BASIC MATERIALS--0.9%
105,000 SGL Carbon AG (ADR)................ 4,882,500
------------
BIOTECHNOLOGY--1.0%
*250,000 Chiron Corp. ...................... 5,218,750
------------
BUSINESS EQUIPMENT & SERVICES--1.8%
125,000 Xerox Corp. ....................... 9,859,375
------------
CHEMICALS--BASIC--1.9%
240,500 Monsanto Co. ...................... 10,356,531
------------
CHEMICALS--PETROLEUM--2.1%
180,000 duPont (E.I.) De Nemours & Co. .... 11,317,500
------------
COMPUTER SERVICES--1.1%
*138,738 Ceredian Corp. .................... 5,861,681
------------
COMPUTERS--SOFTWARE & PERIPHERALS-- 1.4%
169,140 First Data Corp. .................. 7,431,589
------------
CONGLOMERATES--1.5%
122,200 General Electric Co. .............. 7,988,825
------------
COSMETICS & TOILETRIES--3.0%
160,000 Avon Products, Inc. ............... 11,290,000
50,000 Gillette Co. ...................... 4,737,500
------------
16,027,500
------------
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
ELECTRONICS--1.8%
110,000 Sony Corp. (ADR)................... $ 9,680,000
------------
FINANCIAL SERVICES--MORTGAGE
COMPANIES--1.2%
145,000 Federal National Mortgage
Association........................ 6,325,625
------------
FOOD & BEVERAGES--1.8%
255,000 PepsiCo, Inc. ..................... 9,578,438
------------
FOOD PROCESSING--3.8%
120,000 CPC International, Inc. ........... 11,077,500
115,000 Pioneer Hi-Bred International,
Inc. .............................. 9,200,000
------------
20,277,500
------------
HOUSEHOLD & PERSONAL CARE PRODUCTS-- 1.4%
55,000 Procter & Gamble Co. .............. 7,768,750
------------
INSURANCE--3.5%
120,000 Allstate Corp. .................... 8,760,000
29,050 American International
Group, Inc. ....................... 4,339,344
175,000 Equitable Cos, Inc. ............... 5,818,750
------------
18,918,094
------------
INVESTMENT MANAGEMENT--1.1%
175,000 Paine Webber Group Inc. ........... 6,125,000
------------
MANUFACTURING--CONSUMER
PRODUCTS--3.0%
140,000 Corning Inc. ...................... 7,787,500
215,000 Newell Co. ........................ 8,519,375
------------
16,306,875
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
MEDICAL PRODUCTS &
SUPPLIES--1.4%
119,200 Johnson & Johnson.................. $ 7,673,500
------------
NATURAL GAS--0.7%
91,100 Questar Corp. ..................... 3,678,162
------------
OIL & GAS--0.7%
*84,000 Cooper Cameron Corp. .............. 3,927,000
------------
OIL--INTERNATIONAL--4.9%
162,400 Exxon Corp. ....................... 9,987,600
128,000 Mobil Corp. ....................... 8,944,000
150,000 Total S.A. (ADR)................... 7,593,750
------------
26,525,350
------------
PHARMACEUTICALS--4.5%
120,000 American Home Products Corp. ...... 9,180,000
90,000 Bristol-Myers Squibb Co. .......... 7,290,000
65,000 Pfizer Inc. ....................... 7,767,500
------------
24,237,500
------------
PHOTOGRAPHY EQUIPMENT--1.4%
98,200 Eastman Kodak Co. ................. 7,536,850
------------
RAILROADS--3.5%
153,300 Canadian National Railway.......... 6,706,875
95,000 Kansas City Southern Industries,
Inc. .............................. 6,127,500
90,000 Union Pacific Corp. ............... 6,345,000
------------
19,179,375
------------
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
REAL ESTATE INVESTMENT TRUSTS--6.9%
180,000 Avalon Properties, Inc. ........... $ 5,152,500
150,000 Cali Realty Corp. ................. 5,100,000
155,000 Carramerica Realty Corp. .......... 4,456,250
160,000 Duke Realty Investments,
Inc. .............................. 6,480,000
194,500 Federal Realty Investment Trust.... 5,251,500
175,000 General Growth Properties.......... 5,862,500
120,000 Starwood Lodging Trust............. 5,122,500
------------
37,425,250
------------
RESORTS & ENTERTAINMENT--1.5%
101,600 Walt Disney Co. ................... 8,153,400
------------
RETAIL--SPECIALTY STORES--2.7%
*250,000 Borders Group, Inc. ............... 6,031,250
162,600 CVS Corp. ......................... 8,333,250
------------
14,364,500
------------
TECHNOLOGY INDUSTRIES--2.1%
150,000 Motorola Inc. ..................... 11,400,000
------------
TELECOMMUNICATIONS--1.4%
*100,000 Compania Anonima Nacional
Telefonos de Venezuela
(ADR).............................. 4,312,500
*110,000 Worldcom Inc. ..................... 3,520,000
------------
7,832,500
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
UTILITIES--GAS & ELECTRIC--5.1%
168,000 Carolina Power & Light Co. ........ $ 6,027,000
155,000 DQE, Inc. ......................... 4,378,750
145,000 SCANA Corp. ....................... 3,597,812
177,150 Texas Utilities Co. ............... 6,100,603
172,500 Williams Cos., Inc. ............... 7,546,875
------------
27,651,040
------------
TOTAL COMMON STOCKS
(Cost $284,023,332)................ 413,547,085
------------
CONVERTIBLE PREFERRED
STOCKS--10.6%
BANKING--0.7%
30,000 Jefferson-Pilot "NB" (ACES)........ 3,442,500
------------
COMPUTERS--SOFTWARE & PERIPHERALS-- 1.2%
75,000 Microsoft Corp. ................... 6,525,000
------------
CONTAINERS--1.3%
140,000 Crown Cork & Seal.................. 7,070,000
------------
FINANCIAL SERVICES--0.9%
113,000 SunAmerica Inc. ................... 4,929,625
------------
MEDIA--0.4%
40,000 Evergreen Media Corp.** ........... 2,205,000
------------
OIL & GAS--0.7%
180,000 Atlantic Richfield Co. ............ 3,870,000
------------
REAL ESTATE INVESTMENT TRUST--0.7%
80,000 Rouse Co.--Series B................ 3,860,000
------------
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
- ----------- ------------
<C> <S> <C>
CONVERTIBLE PREFERRED
STOCKS (CONTINUED)
RETAIL--2.0%
120,000 K mart Financing I................. $ 6,585,000
70,000 Wendys Financing I-- Series A...... 4,103,750
------------
10,688,750
------------
TELECOMMUNICATIONS--2.3%
115,000 Airtouch Communications Inc. ...... 5,520,000
80,000 Qualcomm Inc. ..................... 3,780,000
30,000 TCI Pacific Communications
Inc.--Series A..................... 3,090,000
------------
12,390,000
------------
UTILITIES--GAS & ELECTRIC--0.4%
40,000 AES Trust I--Series A.............. 2,355,000
------------
TOTAL CONVERTIBLE
PREFERRED STOCKS
(Cost $53,085,310)................. 57,335,875
------------
<CAPTION>
PRINCIPAL
AMOUNT
- -----------
<C> <S> <C>
CONVERTIBLE BONDS--8.8%
BASIC MATERIALS--0.7%
$ 4,000,000 U.S. Filter Corp., 4.50%,
12/15/01........................... 3,905,000
------------
COMPUTER SERVICES--0.5%
2,500,000 National Data, 5.00%, 11/01/03..... 2,653,125
------------
CONSUMER SERVICES--0.8%
4,000,000 CUC International Inc., 3.00%,
2/15/02**.......................... 4,220,000
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- ------------
<C> <S> <C>
CONVERTIBLE BONDS (CONTINUED)
ENTERTAINMENT--0.3%
$ 1,500,000 Imax Corp., 5.75%, 4/01/01**....... $ 1,893,750
------------
HEALTH CARE PRODUCTS & SERVICES-- 1.3%
3,500,000 Alza Corp., 5.00%, 5/01/06......... 3,517,500
3,000,000 PhyCor Inc., 4.50%, 2/15/03........ 3,240,000
------------
6,757,500
------------
HUMAN RESOURCES--0.3%
1,500,000 Personnel Group, 5.75%,
7/01/04**.......................... 1,605,000
------------
INDUSTRIAL SERVICES--0.4%
2,250,000 USA Waste Services Inc., 4.00%,
2/01/02............................ 2,432,812
------------
OIL & GAS--1.0%
4,500,000 Diamond Offshore Drilling, 3.75%,
2/15/07............................ 5,208,750
------------
OIL--DOMESTIC--0.8%
2,400,000 Pennzoil, 6.50%, 1/15/03........... 4,212,000
------------
REAL ESTATE INVESTMENT TRUST--0.8%
3,500,000 Liberty Property Trust, 8.00%,
7/01/01............................ 4,340,000
------------
RETAIL--0.9%
2,000,000 Central Garden & Pet, 6.00%,
11/15/03**......................... 2,165,000
3,000,000 Saks Holdings, 5.50%, 9/15/06...... 2,591,250
------------
4,756,250
------------
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ----------- ------------
<C> <S> <C>
CONVERTIBLE BONDS (CONTINUED)
TECHNOLOGY INDUSTRIES--1.0%
$ 3,000,000 EMC Corp., 3.25%, 3/15/02**........ $ 3,296,250
2,000,000 Premier Technology, 5.75%,
7/01/04............................ 2,085,000
------------
5,381,250
------------
TOTAL CONVERTIBLE BONDS
(Cost $42,768,789)................. 47,365,437
------------
REPURCHASE AGREEMENTS--3.6%
10,000,000 Repurchase agreement with Deutsche
Bank, 5.98%, due 7/01/97,
repurchase price $10,001,661
(Collateral-- Government National
Mortgage Association Bonds,
6.50%-9.50%, 1/01/00-12/15/26;
aggregate market value plus accrued
interest $10,300,000).............. 10,000,000
9,559,000 Repurchase agreement with Smith
Barney Inc., 6.02%, due 7/01/97,
repurchase price $9,560,598
(Collateral-- Various U.S.
Governmental Agency Debt
Obligations, 6.00%-6.50%,
5/15/08-11/25/23; aggregate market
value plus accrued interest
$9,845,771)........................ 9,559,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $19,559,000)................. 19,559,000
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STRIKE MARKET
CONTRACTS PRICE VALUE
- ----------- ------ ------------
<C> <S> <C> <C>
PURCHASED PUT OPTIONS--0.1%
*600 Avon Products Inc.,
expiration October,
1997..................... 65 $ 112,500
*500 Chase Manhattan Corp.,
expiration September,
1997..................... 95 193,750
------------
TOTAL PURCHASED PUT OPTIONS
(Cost $259,550).................. 306,250
------------
TOTAL INVESTMENTS BEFORE
OUTSTANDING WRITTEN
CALL OPTIONS
(Cost $399,695,981) (a)--
99.6%............................ 538,113,647
------------
OUTSTANDING WRITTEN CALL
OPTIONS--(0.1%)
*600 Avon Products Inc.,
expiration October,
1997..................... 75 (168,750)
*500 Chase Manhattan Corp,
expiration September,
1997..................... 105 (137,500)
*250 Procter & Gamble Co.,
expiration October,
1997..................... 140 (190,625)
------------
TOTAL OUTSTANDING WRITTEN CALL
OPTIONS
(Premiums received
$603,430)........................
(496,875)
------------
<CAPTION>
MARKET
VALUE
------------
CONTRACTS
- -----------
<C> <S> <C> <C>
TOTAL INVESTMENTS NET OF
OUTSTANDING WRITTEN
CALL OPTIONS
(Cost $399,092,551)--99.5%.......
$537,616,772
Other assets less
liabilities--0.5%................
2,600,483
------------
NET ASSETS--100.0%...............
$540,217,255
------------
</TABLE>
ACES AUTOMATIC COMMON EXCHANGE SECURITIES.
ADR AMERICAN DEPOSITORY RECEIPT.
* NON-INCOME PRODUCING SECURITY.
** ILLIQUID SECURITY.
(a) THE COST STATED ALSO REPRESENTS THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT JUNE 30, 1997, NET UNREALIZED APPRECIATION WAS $138,417,666
BASED ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF
AGGREGATE GROSS UNREALIZED APPRECIATION OF $140,244,983 AND AGGREGATE
GROSS UNREALIZED DEPRECIATION OF $1,827,317.
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments at market value,
(Identified cost $399,695,981)...... $538,113,647
Receivables
Investments sold.................... 24,595,946
Interest............................ 620,834
Dividends........................... 804,639
Capital stock sold.................. 151,252
Deferred organization costs and other
assets.............................. 7,907
------------
TOTAL ASSETS........................ 564,294,225
------------
LIABILITIES:
Payables:
Due to Custodian.................... 10,664
Investments purchased............... 21,575,500
Capital stock repurchased........... 58,684
Dividends........................... 1,171,229
Services provided by the Bank of New
York and Administrator............ 739,326
Outstanding call options written
(premiums received $603,430)........ 496,875
Accrued expenses and other
liabilities......................... 24,692
------------
TOTAL LIABILITIES................... 24,076,970
------------
NET ASSETS:............................. $540,217,255
------------
SOURCES OF NET ASSETS:
Capital stock @ par................... $ 33,718
Capital surplus....................... 382,513,997
Undistributed net investment income... 321,906
Accumulated net realized gain on
investments......................... 18,823,413
Net unrealized appreciation on
investments......................... 138,524,221
------------
NET ASSETS.............................. $540,217,255
------------
INSTITUTIONAL SHARES:
Net assets............................ $507,384,012
------------
Shares Outstanding.................... 31,668,313
------------
Net asset value, offering price and
repurchase price per share.......... $ 16.02
------------
INVESTOR SHARES:
Net assets............................ $ 32,833,243
------------
Shares Outstanding.................... 2,049,820
------------
Net asset value, offering price and
repurchase price per share.......... $ 16.02
------------
Institutional Shares authorized at $.001
par value............................. 200,000,000
Investor Shares authorized at $.001 par
value................................. 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding
taxes of $20,776)................... $ 4,556,898
Interest.............................. 1,495,960
------------
TOTAL INCOME............................ 6,052,858
------------
EXPENSES:
Advisory.............................. 1,110,412
Administration........................ 356,726
12b-1 fee--Investor Shares............ 18,985
Accounting services................... 29,761
Custodian............................. 21,223
Cash management....................... 7,892
Transfer agent........................ 58,429
Audit................................. 9,154
Directors............................. 6,324
Insurance............................. 3,338
Reports to shareholders............... 15,677
Registration and filings.............. 21,305
Legal................................. 6,075
Other................................. 15,997
------------
TOTAL EXPENSES...................... 1,681,298
------------
NET INVESTMENT INCOME............... 4,371,560
------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on investments...... 18,780,872
------------
Increase in unrealized appreciation
on:
Investments......................... 93,699,609
Written call options................ 106,555
------------
Net unrealized gain on investments
during the period................... 93,806,164
------------
Net realized and unrealized gain on
investments......................... 112,587,036
------------
Net increase in net assets resulting
from operations..................... $116,958,596
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, 1996
---------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income............................................................ $ 4,371,560 $ 4,378,456
Net realized gain on investments................................................. 18,780,872 15,733,809
Net unrealized gain on investments during the period............................. 93,806,164 16,373,339
---------------- -----------------
Net increase in net assets resulting from operations........................... 116,958,596 36,485,604
---------------- -----------------
DIVIDENDS AND DISTRIBUTION TO SHAREHOLDERS:
Dividends from net investment income: Institutional Shares....................... (3,034,789) -0-
Investor Shares............................ (1,238,569) (4,220,255)
Distribution from capital gains: Investor Shares................................. -0- (15,772,269)
---------------- -----------------
(4,273,358) (19,992,524)
---------------- -----------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold: Institutional Shares........................... 416,526,322 -0-
Investor Shares................................ 22,505,233 45,850,655
Proceeds from shares issued on reinvestment of dividends: Institutional Shares... 774,441 -0-
Investor Shares........ 527,120 15,622,755
Cost of capital stock repurchased: Institutional Shares.......................... (17,943,877) -0-
Investor Shares............................... (211,220,560) (31,443,997)
---------------- -----------------
Net increase in net assets resulting from capital stock transactions........... 211,168,679 30,029,413
---------------- -----------------
INCREASE IN NET ASSETS....................................................... 323,853,917 46,522,493
NET ASSETS:
Beginning of period.............................................................. 216,363,338 169,840,845
---------------- -----------------
End of period (includes undistributed net investment income of $321,906 at June
30, 1997, and $223,704 at December 31, 1996)................................... $ 540,217,255 $216,363,338
---------------- -----------------
CHANGE IN CAPITAL STOCK OUTSTANDING:
Shares sold: Institutional Shares................................................ 32,798,547 -0-
Investor Shares..................................................... 1,532,362 3,366,850
Shares issued on reinvestment of dividends: Institutional Shares................. 52,462 -0-
Investor Shares...................... 35,790 1,107,533
Shares repurchased: Institutional Shares......................................... (1,182,696) -0-
Investor Shares.............................................. (14,837,183) (2,232,920)
---------------- -----------------
Net increase................................................................... 18,399,282 2,241,463
Shares outstanding, beginning of period.......................................... 15,318,851 13,077,388
---------------- -----------------
Shares outstanding, end of period................................................ 33,718,133 15,318,851
---------------- -----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
BNY HAMILTON EQUITY INCOME FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTOR SHARES
INSTITUTIONAL ------------------------------------------------------------------
SHARES FOR THE
------------- PERIOD
FOR THE SIX AUGUST 10,
PERIOD APRIL MONTHS 1992*
1, 1997* ENDED YEAR ENDED DECEMBER 31, THROUGH
THROUGH JUNE JUNE 30, -------------------------------------- DECEMBER 31,
30, 1997 1997 1996 1995 1994 1993 1992
------------- -------- -------- -------- -------- -------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 14.21 $ 14.12 $ 12.99 $ 10.70 $ 11.30 $ 10.43 $ 10.00
------------- -------- -------- -------- -------- -------- ------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.10 0.23 0.30 0.32 0.31 0.29 0.11
Net realized and unrealized gain (loss)
on investments........................ 1.81 1.83 2.22 2.41 (0.60) 0.94 0.47
------------- -------- -------- -------- -------- -------- ------------
Total from investment operations...... 1.91 2.06 2.52 2.73 (0.29) 1.23 0.58
------------- -------- -------- -------- -------- -------- ------------
DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income.... (0.10) (0.16) (0.29) (0.32) (0.31) (0.28) (0.12)
Distributions from capital gains........ -- -- (1.10) (0.12) -- (0.08) (0.03)
------------- -------- -------- -------- -------- -------- ------------
Total dividends and distributions..... (0.10) (0.16) (1.39) (0.44) (0.31) (0.36) (0.15)
------------- -------- -------- -------- -------- -------- ------------
Net asset value at end of period........ $ 16.02 $ 16.02 $ 14.12 $ 12.99 $ 10.70 $ 11.30 $ 10.43
------------- -------- -------- -------- -------- -------- ------------
TOTAL RETURN:+.......................... 13.43%** 14.65%** 19.58% 25.78% (2.58)% 11.94% 5.86%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's
omitted).............................. $507,384 $32,833 $216,363 $169,841 $135,131 $112,849 $20,440
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 0.86%*** 0.99%*** 0.97% 1.00% 1.04% 1.09% 1.10%***
Expenses, prior to waiver from The
Bank of New York.................... 0.86%*** 0.99%*** 0.97% 1.00% 1.04% 1.12% 2.12%***
Net investment income, net of waiver
from The Bank of New York........... 2.64%*** 1.82%*** 2.17% 2.66% 2.89% 2.82% 3.33%***
Portfolio turnover rate................. 29% 29% 58% 58% 51% 50% 25%
Average commission rate paid per share
traded................................ $ 0.0625 $0.0625 $ 0.0622 $ 0.0557
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS FOR THE RESPECTIVE CLASS OF SHARES.
** NOT ANNUALIZED.
*** ANNUALIZED.
+ TOTAL RETURN DOES NOT CONSIDER THE EFFECT OF THE SALES LOAD FOR THOSE
PERIODS WHICH THE SALES LOAD WAS IN EFFECT.
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
BNY HAMILTON LARGE CAP GROWTH FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
- ------------ -------------
<C> <S> <C>
COMMON STOCKS--95.9%
AIRCRAFT MANUFACTURING--1.7%
108,374 Boeing Co. .................. $ 5,750,595
-------------
BANKING--5.8%
47,000 First Union Corp. ........... 4,347,500
43,000 Chase Manhattan Corp. ....... 4,173,687
29,107 Northern Trust Corp. ........ 1,408,051
169,466 Norwest Corp. ............... 9,532,463
-------------
19,461,701
-------------
BEVERAGES--SOFT DRINKS--3.3%
163,067 Coca-Cola Co. ............... 11,007,023
-------------
CHEMICALS--BASIC--2.4%
186,565 Monsanto Co. ................ 8,033,955
-------------
CHEMICALS--PETROLEUM--3.2%
168,946 duPont (E.I.) De Nemours &
Co. ......................... 10,622,480
-------------
COMMUNICATIONS &
ENTERTAINMENT--2.2%
149,579 Time Warner, Inc. ........... 7,217,187
-------------
COMPUTER SERVICES--3.1%
26,461 HBO & Co. ................... 1,822,501
151,660 Hewlett-Packard Co. ......... 8,492,960
-------------
10,315,461
-------------
COMPUTERS--SOFTWARE &
PERIPHERALS--7.7%
*113,458 Cisco Systems, Inc. ......... 7,615,868
30,744 First Data Corp. ............ 1,350,815
*86,024 Microsoft Corp. ............. 10,871,283
85,000 Systeme, Anwendungen,
Produkte in der
Datenverarbeitung (ADR)...... 5,880,172
-------------
25,718,138
-------------
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
- ------------ -------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
CONGLOMERATES--4.2%
213,346 General Electric Co. ........ $ 13,947,495
-------------
COSMETICS & TOILETRIES--1.0%
37,008 Gillette Co. ................ 3,506,508
-------------
EDUCATION--0.2%
*16,828 Apollo Group, Inc.--Class
A............................ 593,187
-------------
FINANCIAL SERVICES--3.3%
173,881 Travelers Group, Inc. ....... 10,965,371
-------------
FINANCIAL SERVICES--MORTGAGE COMPANIES--3.4%
262,425 Federal National Mortgage
Association.................. 11,448,291
-------------
FOOD & BEVERAGES--1.3%
90,000 McDonald's Corp. ............ 4,348,125
-------------
FOOD PROCESSING--2.5%
91,009 CPC International, Inc. ..... 8,401,268
-------------
FUNERAL SERVICES--CEMETERY--0.3%
31,927 Service Corp.
International................ 1,049,600
-------------
HEALTHCARE PRODUCTS &
SERVICES--0.9%
*40,000 Oxford Health Plans, Inc. ... 2,870,000
-------------
HOUSEHOLD &
PERSONAL CARE PRODUCTS--4.1%
59,369 Procter & Gamble Co. ........ 8,385,871
136,600 Newell Co. .................. 5,412,775
-------------
13,798,646
-------------
INSURANCE--3.0%
57,280 American International Group,
Inc. ........................ 8,556,200
43,387 Equitable Cos, Inc. ......... 1,442,618
-------------
9,998,818
-------------
INVESTMENT MANAGEMENT--0.3%
22,103 Price (T. Rowe) Associates,
Inc. ........................ 1,141,067
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
BNY HAMILTON LARGE CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
- ------------ -------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
MACHINERY & EQUIPMENT--2.3%
121,524 Ingersoll-Rand Co. .......... $ 7,504,107
-------------
MANUFACTURING--CONSUMER
PRODUCTS--1.2%
75,000 Corning Inc. ................ 4,171,875
-------------
MEDIA--0.4%
*61,612 Liberty Media Group.......... 1,463,285
-------------
MEDICAL PRODUCTS & SUPPLIES--5.1%
199,855 Johnson & Johnson............ 12,865,666
50,000 Medtronic, Inc. ............. 4,050,000
-------------
16,915,666
-------------
NATURAL GAS--1.0%
80,333 Questar Corp. ............... 3,243,445
-------------
OIL & GAS--4.0%
71,376 Enron Corp. ................. 2,913,033
*30,466 ENSCO International Inc. .... 1,607,081
43,195 Schulmberger Ltd. ........... 5,399,375
48,000 Transocean Offshore Inc. .... 3,486,000
-------------
13,405,489
-------------
OIL--INTERNATIONAL--6.5%
181,684 Exxon Corp. ................. 11,173,566
102,000 Mobil Corp. ................. 7,127,250
62,992 Royal Dutch Petroleum Co. ... 3,425,190
-------------
21,726,006
-------------
PHARMACEUTICALS--6.6%
50,000 American Home Products
Corp. ....................... 3,825,000
*12,826 Amgen, Inc. ................. 745,511
16,373 Bristol-Myers Squibb Co. .... 1,326,213
54,369 Merck & Co. ................. 5,627,192
88,858 Pfizer Inc. ................. 10,618,531
-------------
22,142,447
-------------
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
- ------------ -------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
PHOTOGRAPHY EQUIPMENT--0.7%
28,371 Eastman Kodak Co. ........... $ 2,177,474
-------------
REAL ESTATE INVESTMENT
TRUSTS--1.9%
80,000 Duke Realty Investments,
Inc. ........................ 3,240,000
142,775 New Plan Realty Trust........ 3,149,973
-------------
6,389,973
-------------
RETAIL--SPECIALTY STORES--0.9%
57,745 CVS Corp. ................... 2,959,431
-------------
SEMICONDUCTORS--3.1%
72,188 Intel Corp. ................. 10,237,161
-------------
TECHNOLOGY INDUSTRIES--2.1%
91,663 Motorola Inc. ............... 6,966,388
-------------
TELECOMMUNICATIONS--1.5%
85,067 AT&T Corp. .................. 2,982,662
27,568 Lucent Technologies, Inc. ... 1,986,619
-------------
4,969,281
-------------
TRANSPORTATION--1.8%
86,352 Union Pacific Corp. ......... 6,087,816
-------------
UTILITIES--GAS & ELECTRIC--2.9%
115,000 DQE, Inc. ................... 3,248,750
112,826 Florida Progress Corp. ...... 3,532,864
88,553 Texas Utilities Co. ......... 3,049,544
-------------
9,831,158
-------------
TOTAL COMMON STOCKS
(Cost $176,938,449).......... 320,385,918
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
BNY HAMILTON LARGE CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ -------------
<C> <S> <C>
REPURCHASE AGREEMENTS--4.1%
$ 10,000,000 Repurchase agreement with
Deutsche Bank, 5.98%, due
7/01/97, repurchase price
$10,001,661 (Collateral--
Government National Mortgage
Association Bonds,
6.50%-9.50%, 1/01/00-6/15/27;
aggregate market value plus
accrued interest
$10,300,001)................. $ 10,000,000
3,769,000 Repurchase agreement with
Smith Barney Inc., 6.02%, due
7/01/97, repurchase price
$3,769,630 (Collateral--
Federal National Mortgage
Association Bond, 6.50%,
7/25/18; aggregate market
value plus accrued interest
$3,882,070).................. 3,769,000
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $13,769,000)........... 13,769,000
-------------
TOTAL INVESTMENTS
(Cost $190,707,449) (a)--
100%......................... 334,154,918
Other assets less
liabilities--0.0%............ (154,564)
-------------
NET ASSETS--100.0%........... $ 334,000,354
-------------
</TABLE>
ADR AMERICAN DEPOSITORY RECEIPT.
* NON-INCOME PRODUCING SECURITY
(a) THE COST STATED ALSO REPRESENTS THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT JUNE 30, 1997, NET UNREALIZED APPRECIATION WAS $143,447,469
BASED ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGREGATE
GROSS UNREALIZED APPRECIATION OF $145,117,137 AND AGGREGATE GROSS
UNREALIZED DEPRECIATION OF $1,669,668.
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE>
BNY HAMILTON LARGE CAP GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments at market value,
(Identified cost $190,707,449)...... $334,154,918
Cash.................................. 3,058
Receivables:
Investments sold.................... 14,012,000
Interest............................ 8,632
Dividends........................... 365,598
Capital stock sold.................. 84,768
Deferred organization costs and other
assets.............................. 47,482
------------
TOTAL ASSETS...................... 348,676,456
------------
LIABILITIES:
Payables:.............................
Investments purchased............... 13,769,000
Capital stock repurchased........... 127,559
Dividends........................... 283,053
Services provided by the Bank of New
York and Administrator............ 473,177
Accrued expenses and other
liabilities......................... 23,313
------------
TOTAL LIABILITIES................. 14,676,102
------------
NET ASSETS:............................. $334,000,354
------------
SOURCES OF NET ASSETS:
Capital stock @ par................... $ 181,091
Capital surplus....................... 180,910,186
Distributions in excess of net
investment income................... (48,383)
Accumulated net realized gain on
investments......................... 9,509,991
Net unrealized appreciation on
investments......................... 143,447,469
------------
NET ASSETS.............................. $334,000,354
------------
INSTITUTIONAL SHARES:
Net assets............................ $333,952,920
------------
Shares Outstanding.................... 28,301,274
------------
Net asset value, offering price and
repurchase price per share.......... $ 11.80
------------
INVESTOR SHARES:
Net assets............................ $ 47,434
------------
Shares Outstanding.................... 4,020
------------
Net asset value, offering price and
repurchase price per share.......... $ 11.80
------------
Institutional Shares authorized at $.001
par value............................. 200,000,000
Investor Shares authorized at $.001 par
value................................. 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE PERIOD APRIL 1, 1997* THROUGH
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding
taxes of $17,567)................... $ 1,272,811
Interest.............................. 173,129
------------
TOTAL INCOME........................ 1,445,940
------------
EXPENSES:
Advisory.............................. 466,718
Administration........................ 155,573
12b-1 fee--Investor Shares............ 43
Accounting services................... 14,956
Custodian............................. 14,859
Cash management....................... 7,429
Transfer agent........................ 2,805
Audit................................. 4,065
Directors............................. 1,746
Reports to shareholders............... 7,729
Registration and filings.............. 4,736
Legal................................. 2,345
Other................................. 2,369
------------
TOTAL EXPENSES...................... 685,373
Fees waived by the Bank of New York... (47,482)
------------
NET EXPENSES........................ 637,891
------------
NET INVESTMENT INCOME............... 808,049
------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on investments...... 9,509,991
------------
Increase in unrealized appreciation on
investments during the period....... 143,447,469
------------
Net realized and unrealized gain on
investments......................... 152,957,460
------------
Net increase in net assets resulting
from operations..................... $153,765,509
------------
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE>
BNY HAMILTON LARGE CAP GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD APRIL 1, 1997* THROUGH JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
OPERATIONS:
Net investment income................................................................. $ 808,049
Net realized gain on investments...................................................... 9,509,991
Increase in unrealized appreciation on investments during the period.................. 143,447,469
------------
Net increase in net assets resulting from operations................................ 153,765,509
------------
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income: Institutional Shares............................ (856,165)
Investor Shares................................. (267)
------------
(856,432)
------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold: Institutional Shares................................ 191,400,164
Investor Shares..................................... 31,698
Proceeds from shares issued on reinvestment of dividends: Institutional Shares........ 18,010
Investor Shares............. 6
Cost of capital stock repurchased: Institutional Shares............................... (10,358,601)
Investor Shares.................................... -0-
------------
Net increase in net assets resulting from capital stock transactions................ 181,091,277
------------
INCREASE IN NET ASSETS............................................................ 334,000,354
NET ASSETS:
Beginning of period................................................................... -0-
------------
End of period......................................................................... $334,000,354
------------
CHANGE IN CAPITAL STOCK OUTSTANDING:
Shares sold: Institutional Shares..................................................... 29,231,431
Investor Shares.......................................................... 4,019
Shares issued on reinvestment of dividends: Institutional Shares...................... 1,603
Investor Shares........................... 1
Shares repurchased: Institutional Shares.............................................. (931,760)
Investor Shares................................................... -0-
------------
Net increase........................................................................ 28,305,294
Shares outstanding, beginning of period............................................... -0-
------------
Shares outstanding, end of period..................................................... 28,305,294
------------
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE>
BNY HAMILTON LARGE CAP GROWTH FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL INVESTOR
SHARES SHARES
---------------- --------------
FOR THE PERIOD FOR THE PERIOD
APRIL 1, 1997* MAY 1, 1997*
THROUGH JUNE 30, THROUGH JUNE
1997 30, 1997
---------------- --------------
<S> <C> <C>
PER SHARE DATA:
Net asset value at beginning of period................. $ 10.00 $ 10.70
-------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income.................................. 0.03 0.02
Net realized and unrealized gain on investments........ 1.80 1.10
-------- -------
Total from investment operations..................... 1.83 1.12
-------- -------
DIVIDENDS
Dividends from net investment income................... (0.03) (0.02)
-------- -------
Net asset value at end of period....................... $ 11.80 $ 11.80
-------- -------
TOTAL RETURN:.......................................... 18.32%** 10.47%**
RATIOS/SUPPLEMENTAL DATA:..............................
Net assets at end of period (000's omitted)............ $333,953 $ 47
Ratio to average net assets of:
Expenses, net of waiver from The Bank of New York.... 0.81%*** 1.07%***
Expenses, prior to waiver from The Bank of New
York............................................... 0.88%*** 1.07%***
Net investment income, net of waiver from The Bank of
New York........................................... 1.03%*** 0.72%***
Portfolio turnover rate................................ 11% 11%
Average commission rate paid per share traded.......... $ 0.0580 $0.0580
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS FOR THE RESPECTIVE CLASS OF SHARES.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE>
BNY HAMILTON SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
- ----------- -------------
<C> <S> <C>
COMMON STOCKS--96.6%
ADVERTISING--4.1%
*205,836 Ha-Lo Industries Inc. ....... $ 4,862,875
-------------
BIOSCIENCES--0.5%
*55,895 Aurora Biosciences Corp. .... 579,911
-------------
COMPUTER SERVICES--4.9%
*37,240 Network Appliance, Inc. ..... 1,415,120
*85,810 Veritas Software Corp. ...... 4,311,953
-------------
5,727,073
-------------
COMPUTERS--SOFTWARE & PERIPHERALS-- 13.3%
*78,245 ENCAD, Inc. ................. 3,247,168
*23,275 Jetfax, Inc. ................ 180,381
*37,515 QuickResponse Services,
Inc. ........................ 1,359,919
*108,685 Saville Systems Ireland
(ADR)........................ 5,651,620
*109,646 Sterling Commerce, Inc. ..... 3,604,612
*50,230 USCS International, Inc. .... 1,645,033
-------------
15,688,733
-------------
EDUCATION--6.9%
*162,243 DeVry, Inc. ................. 4,380,561
*48,100 Education Management
Corp. ....................... 1,250,600
*102,210 ITT Educational Services,
Inc. ........................ 2,536,086
-------------
8,167,247
-------------
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
- ----------- -------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
ELECTRICAL EQUIPMENT--1.1%
*9,448 Altera Corp. ................ $ 477,124
*40,000 Illinois Superconductor
Corp. ....................... 440,000
*4,605 Jabil Circuit, Inc. ......... 386,244
-------------
1,303,368
-------------
ELECTRONICS--0.1%
*16,800 Industrial Acoustics Co.,
Inc. ........................ 143,850
-------------
ENTERTAINMENT--2.9%
*6,975 Penske Motorsports, Inc. .... 229,303
*95,472 Regal Cinemas, Inc. ......... 3,150,576
-------------
3,379,879
-------------
FINANCIAL SERVICES--5.7%
107,540 Bank United Corp.--Class A... 4,086,520
34,080 Magna Group, Inc. ........... 1,184,280
42,500 Sirrom Capital Corp. ........ 1,466,250
-------------
6,737,050
-------------
FUNERAL SERVICES--CEMETERY--4.4%
*212,582 Equity Corp. International... 5,141,827
-------------
HEALTHCARE PRODUCTS & SERVICES--1.4%
*41,255 FPA Medical Management,
Inc. ........................ 977,228
*27,070 Hologic, Inc. ............... 720,739
-------------
1,697,967
-------------
INSURANCE--2.4%
56,167 Allied Group, Inc. .......... 2,134,346
*16,935 Penncorp Financial Group,
Inc. ........................ 651,997
-------------
2,786,343
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE>
BNY HAMILTON SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
- ----------- -------------
COMMON STOCKS (CONTINUED)
<C> <S> <C>
INVESTMENT MANAGEMENT--1.0%
29,495 Oppenheimer Capital, L.P. ... $ 1,161,366
-------------
MANUFACTURING--10.4%
*224,046 Miller Industries, Inc. ..... 3,584,736
*46,545 Scotts Co. (The)--Class A.... 1,349,805
*77,880 Sola International, Inc. .... 2,608,980
*14,260 Waters Corp. ................ 511,577
138,347 Wolverine World Wide,
Inc. ........................ 4,202,290
-------------
12,257,388
-------------
MEDICAL PRODUCTS & SUPPLIES--1.4%
*50,000 Ballard Medical Products..... 1,003,125
*20,000 DePuy, Inc. ................. 460,000
*143,000 On-Gard Systems, Inc......... 169,812
-------------
1,632,937
-------------
METALS--0.8%
*34,310 Wyman-Gordon Co. ............ 926,370
-------------
OIL & GAS--13.5%
*59,190 B.J. Services Co. ........... 3,174,064
*29,360 Falcon Drilling Co., Inc. ... 1,691,870
*110,820 Global Industries Ltd. ...... 2,588,686
*20,000 Maverick Tube Corp. ......... 750,000
*83,525 National-Oilwell, Inc. ...... 4,802,688
*38,505 Petroleum Geo-Services
(ADR)........................ 1,881,932
*55,000 Tuboscope Vetco International
Corp. ....................... 1,093,125
-------------
15,982,365
-------------
PARKING FACILITIES--1.7%
*57,190 Central Parking Corp. ....... 1,990,927
-------------
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
- ----------- -------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
PHARMACEUTICALS--2.8%
*40,955 Agouron Pharmaceuticals,
Inc. ........................ $ 3,312,236
-------------
PRISON MANAGEMENT--4.6%
*137,575 Corrections Corp. of
America...................... 5,468,606
-------------
REAL ESTATE INVESTMENT TRUSTS--3.0%
19,225 Duke Realty Investments,
Inc. ........................ 778,612
40,030 First Union Real Estate
Investments.................. 567,926
25,750 Irvine Apartment Communities,
Inc. ........................ 756,406
28,030 Liberty Property Trust....... 697,246
25,720 Regency Realty Corp. ........ 700,870
-------------
3,501,060
-------------
RECORDS STORAGE--3.5%
*136,600 Iron Mountain, Inc. ......... 4,098,000
-------------
RESORTS & ENTERTAINMENT--1.0%
*48,830 Vail Resorts Inc. ........... 1,236,009
-------------
TELECOMMUNICATIONS--4.4%
*156,640 Aspect Telecommunications
Corp. ....................... 3,485,240
*34,740 P-COM, Inc. ................. 1,146,420
*20,000 Premiere Technologies,
Inc. ........................ 520,000
-------------
5,151,660
-------------
TEXTILE--0.8%
*20,000 Jones Apparel Group, Inc. ... 955,000
-------------
TOTAL COMMON STOCKS
(Cost $87,143,537)........... 113,890,047
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE>
BNY HAMILTON SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
VALUE
-------------
PRINCIPAL
AMOUNT
- -----------
REPURCHASE AGREEMENTS--3.3%
<C> <S> <C>
$2,000,000 Repurchase Agreement with
Deutsche Bank, 5.98%, due
7/01/97, repurchase price
$2,000,332 (Collateral--
Government National Mortgage
Association Bonds,
7.50%-8.00%, 2/15/09-7/15/22;
aggregate market value plus
accrued interest
$2,060,000).................. $ 2,000,000
1,940,000 Repurchase Agreement with
Smith Barney Inc., 6.02%, due
7/01/97, repurchase price
$1,940,324 (Collateral--
Federal National Mortgage
Association Bond, 6.50%,
7/25/18; aggregate market
value plus accrued interest
$1,998,201).................. 1,940,000
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $3,940,000)............ 3,940,000
-------------
TOTAL INVESTMENTS BEFORE
OUTSTANDING
WRITTEN CALL OPTIONS
(Cost $91,083,537) (a)--
99.9%........................ 117,830,047
-------------
</TABLE>
<TABLE>
<CAPTION>
STRIKE MARKET
CONTRACTS PRICE VALUE
- ----------- ----------- -------------
<C> <S> <C> <C>
OUTSTANDING WRITTEN CALL
OPTIONS--0.0%
*270 DeVry Inc.,
expiration July, 1997
(Premium received
$19,439).............. 30 $ (16,875)
-------------
TOTAL INVESTMENTS NET
OF OUTSTANDING
WRITTEN CALL OPTIONS
(Cost $91,064,098)--
99.9%................. 117,813,172
Other assets less
liabilities--0.1%..... 146,083
-------------
NET ASSETS--100.0%.... $ 117,959,255
-------------
</TABLE>
ADR AMERICAN DEPOSITORY RECEIPT.
* NON-INCOME PRODUCING SECURITY.
(a) THE COST STATED ALSO REPRESENTS THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT JUNE 30, 1997, NET UNREALIZED APPRECIATION WAS $26,746,510
BASED ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGREGATE
GROSS UNREALIZED APPRECIATION OF $27,249,265 AND AGGREGATE GROSS
UNREALIZED DEPRECIATION OF $502,755.
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE>
BNY HAMILTON SMALL CAP GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments at market value,
(Identified cost $91,083,537)....... $117,830,047
Cash.................................. 62,793
Receivables:
Investments sold.................... 4,227,846
Interest............................ 2,478
Dividends........................... 21,349
Capital stock sold.................. 10,947,529
Deferred organization costs and other
assets.............................. 25,017
------------
TOTAL ASSETS........................ 133,117,059
------------
LIABILITIES:
Payables:
Investments purchased............... 14,961,897
Services provided by the Bank of New
York and Administrator............ 171,157
Outstanding call options written
(premiums received $19,439)......... 16,875
Accrued expenses and other
liabilities......................... 7,875
------------
TOTAL LIABILITIES................. 15,157,804
------------
NET ASSETS:............................. $117,959,255
------------
SOURCES OF NET ASSETS:
Capital stock @ par................... $ 89,280
Capital surplus....................... 89,190,585
Undistributed net investment loss..... (6,225)
Accumulated net realized gain on
investments......................... 1,936,541
Net unrealized appreciation on
investments......................... 26,749,074
------------
NET ASSETS.............................. $117,959,255
------------
INSTITUTIONAL SHARES:
Net assets............................ $117,837,422
------------
Shares Outstanding.................... 9,635,047
------------
Net asset value, offering price and
repurchase price per share.......... $ 12.23
------------
INVESTOR SHARES:
Net assets............................ $ 121,833
------------
Shares Outstanding.................... 9,965
------------
Net asset value, offering price and
repurchase price per share.......... $ 12.23
------------
Institutional Shares authorized at $.001
par value............................. 200,000,000
Investor Shares authorized at $.001 par
value................................. 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE PERIOD APRIL 1, 1997* THROUGH
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends.............................. $ 130,541
Interest............................... 83,311
-----------
TOTAL INCOME......................... 213,852
-----------
EXPENSES:
Advisory............................... 170,137
Administration......................... 45,370
12b-1 fee--Investor Shares............. 28
Accounting services.................... 14,956
Custodian.............................. 3,117
Cash management........................ 1,546
Transfer agent......................... 2,805
Audit.................................. 1,473
Directors.............................. 1,746
Reports to shareholders................ 1,072
Registration and filings............... 1,371
Legal.................................. 850
Other.................................. 623
-----------
TOTAL EXPENSES....................... 245,094
Fees waived by the Bank of New York.... (25,017)
-----------
NET EXPENSES......................... 220,077
-----------
NET INVESTMENT LOSS.................. (6,225)
-----------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on:
Investments.......................... 1,719,608
Written call options................. 216,933
-----------
Net realized gain on investments....... 1,936,541
-----------
Increase in unrealized appreciation on:
Investments.......................... 26,746,510
Written call options................. 2,564
-----------
Net unrealized gain on investments
during the period.................... 26,749,074
-----------
Net realized and unrealized gain on
investments.......................... 28,685,615
-----------
Net increase in net assets resulting
from operations...................... $28,679,390
-----------
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE>
BNY HAMILTON SMALL CAP GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD APRIL 1, 1997* THROUGH JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
OPERATIONS:
Net investment loss................................................................... $ (6,225)
Net realized gain on investments...................................................... 1,936,541
Net unrealized gain on investments during the period.................................. 26,749,074
-----------
Net increase in net assets resulting from operations................................ 28,679,390
-----------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold: Institutional Shares................................ 92,480,660
Investor Shares..................................... 110,895
Cost of capital stock repurchased: Institutional Shares............................... (3,311,690)
Investor Shares.................................... -0-
-----------
Net increase in net assets resulting from capital stock transactions................ 89,279,865
-----------
INCREASE IN NET ASSETS............................................................ 117,959,255
NET ASSETS:
Beginning of period................................................................... -0-
-----------
End of period......................................................................... $117,959,255
-----------
CHANGE IN CAPITAL STOCK OUTSTANDING:
Shares sold: Institutional Shares..................................................... 9,941,179
Investor Shares.......................................................... 9,965
Shares repurchased: Institutional Shares.............................................. (306,132)
Investor Shares................................................... -0-
-----------
Net increase........................................................................ 9,645,012
Shares outstanding, beginning of period............................................... -0-
-----------
Shares outstanding, end of period..................................................... 9,645,012
-----------
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE>
BNY HAMILTON SMALL CAP GROWTH FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL INVESTOR
SHARES SHARES
---------------- --------------
FOR THE PERIOD FOR THE PERIOD
APRIL 1, 1997* MAY 1, 1997*
THROUGH THROUGH
JUNE 30, 1997 JUNE 30, 1997
---------------- --------------
<S> <C> <C>
PER SHARE DATA:
Net asset value at beginning of period............ $ 10.00 $ 10.03
-------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment loss............................... -- (0.01)
Net realized and unrealized gain on investments... 2.23 2.21
-------- -------
Total from investment operations................ 2.23 2.20
-------- -------
Net asset value at end of period.................. $ 12.23 $ 12.23
-------- -------
TOTAL RETURN:..................................... 22.30%** 21.93%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)....... $117,837 $ 122
Ratio to average net assets of:
Expenses, net of waiver from The Bank of New
York.......................................... 0.96%*** 1.19%***
Expenses, prior to waiver from The Bank of New
York.......................................... 1.06%*** 1.28%***
Net investment income, net of waiver from The
Bank of New York.............................. (0.03)%*** (0.58)%***
Portfolio turnover rate........................... 28% 28%
Average commission rate paid per share traded..... $ 0.0468 $0.0468
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS FOR THE RESPECTIVE CLASS OF SHARES.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES US$ VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS--94.0%
ARGENTINA--0.7%
*9,740 Disco SA (ADR)................. $ 385,948
------------
AUSTRALIA--3.7%
23,500 Amcor Ltd. .................... 154,923
39,660 Australia And New Zealand
Banking Group Ltd. ............ 294,139
24,000 National Australian Bank
Ltd. .......................... 341,071
22,700 News Corp., Ltd. .............. 107,986
44,200 Pioneer International Ltd. .... 169,535
67,600 Santos Ltd. ................... 282,077
*30,500 Southern Pacific Petroleum NL.. 91,396
34,750 Westpac Banking Corp., Ltd. ... 207,481
32,050 WMC Ltd. ...................... 200,484
23,500 Woodside Petroleum Ltd. ....... 200,696
------------
2,049,788
------------
FRANCE--7.0%
1,950 Alcatel Alsthom................ 244,458
8,140 Banque Nationale De Paris...... 335,808
4,050 Cap Gemini SA.................. 213,850
240 Carrefour Supermarche SA....... 174,473
2,000 Cetelem........................ 251,749
2,500 Compagnie de Saint-Gobain...... 364,933
2,000 Elf Aquitaine SA............... 215,979
650 Essilor International.......... 175,483
800 Groupe Danone.................. 132,313
1,560 L'Air Liquide.................. 247,913
720 L'OREAL........................ 303,652
800 Legrand SA..................... 141,034
665 LVMH (Moet Hennessy Louis
Vuitton)....................... 178,966
2,300 Michelin (CGDE), B Shares...... 138,252
*3,940 SGS-Thomson Microelectronics
NV............................. 311,392
1,515 Societe BIC SA................. 247,987
2,130 Total SA, B Shares............. 215,506
------------
3,893,748
------------
<CAPTION>
NUMBER OF
SHARES US$ VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
GERMANY--8.1%
2,120 Allianz AG..................... $ 453,191
9,920 BASF AG........................ 366,335
9,600 Bayer AG....................... 370,219
4,520 Daimler-Benz AG................ 368,078
9,050 Deutsche Bank AG............... 531,823
11,200 Deutsche Telekom AG............ 275,415
322 Linde AG....................... 250,388
640 Mannesmann AG.................. 286,112
95 Muenchener Rueckversicherungs-
Gesellschaft AG................ 269,320
840 Systeme, Anwendungen, Produkte
in der Datenverarbeitung....... 173,299
2,850 Schering AG.................... 305,521
5,100 Siemens AG..................... 305,701
9,150 VEBA AG........................ 517,221
------------
4,472,623
------------
GREECE--0.9%
11,300 Hellenic Telecommunication
Organization SA................ 265,548
2,110 National Bank Of Greece SA..... 258,301
------------
523,849
------------
HONG KONG--5.4%
*16,000 Beijing Enterprises Holdings
Ltd. .......................... 100,784
50,000 Cathay Pacific Airways......... 103,585
17,000 Cheung Kong Holdings Ltd. ..... 167,865
*54,000 China Everbright-IHD Holdings
Ltd. .......................... 161,360
28,000 China Light And Power Co. ..... 158,662
27,000 Citic Pacific Ltd. ............ 168,679
23,500 Hang Seng Bank Ltd. ........... 335,182
35,500 Hong Kong Electric Holdings
Ltd. .......................... 142,966
155,600 Hong Kong Telecommunications
Ltd. .......................... 371,563
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES US$ VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
4,800 HSBC Holdings PLC.............. $ 144,360
41,000 Hutchison Whampoa Ltd. ........ 354,576
16,000 New World Development Co.,
Ltd. .......................... 95,414
84,000 South China Morning Post
Holdings Ltd. ................. 82,403
17,000 Sun Hung Kai Properties
Ltd. .......................... 204,620
26,000 Swire Pacific Ltd., Class A.... 234,082
23,000 Wharf Holdings Ltd. ........... 99,751
21,000 Wheelock & Co., Ltd. .......... 51,637
------------
2,977,489
------------
HUNGARY--0.5%
7,800 MOL Magyar Olaj-es Gazipari
Rt. ........................... 172,958
5,200 MOL Magyar Olaj-es Gazipari
Rt., A Shares (GDR)............ 115,700
------------
288,658
------------
INDIA--0.4%
7,400 Larsen & Toubro Ltd. (GDR)..... 126,725
*4,000 Videsh Sanchar Nigam Ltd.
(GDR).......................... 83,300
------------
210,025
------------
IRELAND--1.8%
40,000 Allied Irish Banks PLC......... 305,898
36,800 CRH PLC........................ 385,239
65,500 Irish Life PLC................. 333,576
------------
1,024,713
------------
ITALY--2.0%
150,000 Banca Commerciale Italiana..... 310,314
75,000 ENI SPA........................ 424,258
85,800 Stet Societa' Finanziaria
Telefonica SPA--RNC............ 297,514
53,000 Telecom Italia Mobile SPA--
RNC............................ 94,693
------------
1,126,779
------------
<CAPTION>
NUMBER OF
SHARES US$ VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
JAPAN--25.5%
9,600 Advantest Corp. ............... $ 738,268
20,000 Canon, Inc. ................... 545,311
47,000 Dai-Ichi Kangyo Bank Ltd. ..... 640,741
50,000 Fujitsi Ltd. .................. 694,748
12,000 JUSCO Co. ..................... 405,838
8,400 Kyocera Corp. ................. 668,006
37,000 Laox........................... 520,580
17,000 Marui Co., Ltd. ............... 316,438
84,000 Minebea Co., Ltd. ............. 895,569
45,000 Mitsubishi Estate Co., Ltd. ... 652,801
47,000 NEC Corp. ..................... 657,170
15 NTT Data Corp. ................ 580,704
70,000 Okumura........................ 371,319
53,000 Ricoh Corp., Ltd. ............. 694,748
7,000 Rohm Co. ...................... 721,838
26,000 Sharp Corp. ................... 358,997
42,000 Shin-Etsu Chemical Co.,
Ltd. .......................... 1,115,791
8,700 Sony Corp. .................... 759,530
44,000 Sumitomo Electric Industries... 738,268
24,000 Takeda Chemical Industries..... 675,347
34,000 Toho Titanium.................. 519,968
13,000 Tokyo Electron Ltd. ........... 622,564
98,000 Yamaichi Securities Co.,
Ltd. .......................... 292,039
------------
14,186,583
------------
MALAYSIA--1.7%
16,600 Malayan Banking Berhad......... 174,287
7,000 Rothmans Of Pall Mall Berhad... 68,780
66,000 Sime Darby Berhad.............. 219,651
29,500 Telekom Malaysia Berhad........ 137,916
48,000 Tenaga Nasional Berhad......... 233,914
13,000 United Engineers (Malaysia)
Ltd. .......................... 93,740
------------
928,288
------------
MEXICO--1.3%
41,360 Cemex SA....................... 358,769
*16,000 Corporacion Geo SA, B Shares+
(ADR).......................... 365,277
------------
724,046
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES US$ VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
NETHERLANDS--5.5%
22,000 ABN AMRO Holding NV............ $ 410,958
4,990 Ahold NV....................... 421,750
16,740 Dordtsche Petroleum-Industrie
MIJ NV......................... 897,096
3,500 Gucci Group NV................. 228,651
9,200 Internationale Nederlanden
Groep NV....................... 424,943
1,930 Unilever NV-CVA................ 407,016
2,420 Wolters Kluwer NV-CVA.......... 295,194
------------
3,085,608
------------
NEW ZEALAND--0.5%
40,000 Carter Holt Harvey Ltd. ....... 103,286
31,600 Telecom Corporation Of New
Zealand Ltd. .................. 160,622
------------
263,908
------------
PHILIPPINES--0.4%
40,000 La Tondena Distillers Inc. .... 96,300
1,750,000 Pryce Properties Corp. ........ 119,427
------------
215,727
------------
POLAND--0.4%
25,000 Elektrim Spolka Akcyjna SA..... 217,573
------------
PORTUGAL--1.1%
12,500 Cimentos De Portugal, SA....... 291,683
6,673 Electricidade De Portugal,
SA............................. 122,611
4,490 Portugal Telecom SA............ 181,347
------------
595,641
------------
<CAPTION>
NUMBER OF
SHARES US$ VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
SINGAPORE--1.3%
12,000 City Developments Ltd. ........ $ 117,495
24,000 DBS Land Ltd. ................. 75,868
39,000 NatSteel Ltd. ................. 99,283
16,000 Oversea-Chinese Banking Corp.,
Ltd. .......................... 165,612
11,000 Singapore International
Airlines Ltd. ................. 98,472
5,000 Singapore Press Holdings
Ltd. .......................... 100,710
5,000 United Overseas Bank Ltd. ..... 51,404
6,000 Wing Tai Holdings Ltd. ........ 17,289
------------
726,133
------------
SPAIN--3.5%
16,000 Banco Santander SA............. 493,914
4,520 Empresa Nacional de
Electricidad, SA............... 380,175
3,300 Grupo Acciona SA............... 372,476
2,900 Corporacion Mapfre............. 154,593
3,600 Repsol Petroleo SA............. 152,499
13,100 Telefonica de Espana........... 379,452
------------
1,933,109
------------
SWEDEN--2.8%
6,167 Astra AB, A Shares............. 114,848
13,833 Astra AB, B Shares............. 245,983
4,000 Electrolux AB, Series B........ 288,656
3,220 Sandvik AB..................... 91,407
11,580 Sandvik AB, B Shares........... 328,723
12,800 Telefonaktiebolaget LM
Ericsson, Class B.............. 504,062
------------
1,573,679
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES US$ VALUE
- ----------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
SWITZERLAND--6.0%
184 ABB AG......................... $ 278,931
800 Adecco SA...................... 307,302
280 Alusuisse-Lonza Holding AG..... 290,400
2,530 Credit Suisse Group............ 325,394
420 Nestle SA...................... 554,872
530 Novartis, Registered Shares.... 848,524
80 Roche Holding AG............... 724,629
------------
3,330,052
------------
UNITED KINGDOM--13.5%
24,000 Abbey National PLC............. 327,534
17,200 British Aerospace PLC.......... 382,586
32,800 British Airport Author PLC..... 302,150
33,100 British Airways PLC............ 377,080
53,300 British Petroleum Co. ......... 662,199
71,000 British Telecommunications
PLC............................ 527,017
18,100 Dixons Group PLC............... 140,980
19,270 General Accident PLC........... 280,622
33,000 Glaxo Wellcome PLC............. 681,032
23,600 HSBC Holdings PLC.............. 726,044
13,700 Imperial Chemical Industries
PLC............................ 190,502
75,000 Ladbroke Group PLC............. 293,333
55,200 Lloyds TSB Group PLC........... 565,915
45,200 Marks & Spencer PLC............ 374,627
*39,305 Norwich Union PLC.............. 209,002
34,000 Reed International PLC......... 329,332
18,900 Rolls-Royce PLC................ 72,190
17,900 Siebe PLC...................... 302,974
47,600 Vodafone Group PLC............. 231,721
50,000 WPP Group PLC.................. 205,125
10,000 Zeneca Group PLC............... 330,530
------------
7,512,495
------------
TOTAL COMMON STOCKS
(Cost $49,432,068)............. 52,246,462
------------
<CAPTION>
NUMBER OF
SHARES US$ VALUE
- ----------- ------------
<C> <S> <C>
PREFERRED STOCKS--0.7%
GERMANY--0.7%
690 Volkswagen AG
(Cost $355,507)................ $ 386,076
------------
TOTAL INVESTMENTS
(Cost $49,787,575)
(a)--94.7%..................... 52,632,538
Other assets less
liabilities--5.3%.............. 2,936,794
------------
NET ASSETS--100.0%............. $ 55,569,332
------------
</TABLE>
ADR AMERICAN DEPOSITORY RECEIPT.
GDR GLOBAL DEPOSITORY RECEIPT.
+ RESTRICTED SECURITY.
* NON-INCOME PRODUCING SECURITY.
(a) THE COST STATED ALSO REPRESENTS THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT JUNE 30, 1997, NET UNREALIZED APPRECIATION WAS $2,844,963
BASED ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGREGATE
GROSS UNREALIZED APPRECIATION OF $3,333,458 AND AGGREGATE GROSS UNREALIZED
DEPRECIATION OF $488,495.
SEE NOTES TO FINANCIAL STATEMENTS.
38
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
INDUSTRY DIVERSIFICATION
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% OF TOTAL
US$ VALUE NET ASSETS
----------- ----------
<S> <C> <C>
Advertising And Marketing Services.......................... $ 205,125 0.4%
Aerospace................................................... 454,776 0.8
Airport Facilities.......................................... 302,150 0.5
Automobiles And Trucks...................................... 754,153 1.4
Banking..................................................... 7,371,127 13.3
Beverages--Distillers....................................... 96,300 0.2
Building Materials.......................................... 1,942,635 3.5
Business Equipment And Services............................. 1,240,059 2.2
Chemicals................................................... 2,290,760 4.2
Communications Equipment And Services....................... 748,521 1.3
Computer Services........................................... 213,850 0.4
Computers--Software And Peripherals......................... 2,105,921 3.8
Construction................................................ 736,595 1.3
Consumer Products........................................... 2,797,991 5.0
Containers And Packaging.................................... 154,923 0.3
Cosmetics And Toiletries.................................... 303,652 0.5
Electrical And Electronic Equipment......................... 6,301,116 11.3
Financial Services.......................................... 543,787 1.0
Forest And Paper Products................................... 103,286 0.2
Holdings Companies--Diversified............................. 1,350,160 2.4
Human Resources............................................. 307,302 0.6
Insurance................................................... 1,700,304 3.1
Leisure And Recreation Products............................. 293,333 0.5
Machinery And Equipment..................................... 1,083,355 1.9
Media....................................................... 107,985 0.2
Metals...................................................... 810,369 1.5
Mining...................................................... 200,484 0.4
Oil And Gas................................................. 3,665,508 6.6
Pharmaceuticals............................................. 3,926,413 7.1
Publishing.................................................. 807,639 1.5
Real Estate Development..................................... 1,584,879 2.8
Retail...................................................... 2,740,633 4.9
Scientific And Medical Instruments.......................... 175,483 0.3
Steel....................................................... 99,283 0.2
Telecommunications.......................................... 3,006,107 5.4
Tire And Rubber............................................. 138,252 0.2
Tobacco..................................................... 68,780 0.1
Transportation--Air......................................... 579,136 1.0
Utilities--Electric......................................... 1,320,406 2.4
----------- -----
Total Investments........................................... 52,632,538 94.7
Other assets less liabilities............................... 2,936,794 5.3
----------- -----
Net Assets.................................................. $55,569,332 100.0%
----------- -----
</TABLE>
39
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments at market value,
(Identified cost $49,787,575)....... $ 52,632,538
Cash.................................. 7,668,133
Receivables
Dividends........................... 113,987
Capital stock sold.................. 886,000
Deferred organization costs and other
assets.............................. 13,574
------------
TOTAL ASSETS........................ 61,314,232
------------
LIABILITIES:
Payables:
Investments purchased............... 5,656,647
Services provided by the Bank of New
York and Administrator............ 73,609
Accrued expenses and other
liabilities......................... 14,644
------------
TOTAL LIABILITIES................... 5,744,900
------------
NET ASSETS:............................. $ 55,569,332
------------
SOURCES OF NET ASSETS:
Capital stock @ par................... $ 52,401
Capital surplus....................... 52,348,407
Undistributed net investment income... 60,064
Accumulated net realized gain on
investments......................... 273,168
Net unrealized appreciation on
investments......................... 2,844,963
Net unrealized depreciation on foreign
currency transactions............... (9,671)
------------
NET ASSETS.............................. $ 55,569,332
------------
INSTITUTIONAL SHARES:
Net assets............................ $ 55,255,265
------------
Shares Outstanding.................... 4,878,131
------------
Net asset value, offering price and
repurchase price per share.......... $ 11.33
------------
INVESTOR SHARES:
Net assets............................ $ 314,067
------------
Shares Outstanding.................... 27,764
------------
Net asset value, offering price and
repurchase price per share.......... $ 11.31
------------
Institutional Shares authorized at $.001
par value............................. 200,000,000
Investor Shares authorized at $.001 par
value................................. 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE PERIOD APRIL 1, 1997* THROUGH
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding
taxes of $24,436)...................... $ 110,058
Interest................................. 29,306
----------
TOTAL INCOME........................... 139,364
----------
EXPENSES:
Advisory................................. 53,030
Administration........................... 12,478
12b-1 fee--Investor Shares............... 66
Accounting services...................... 19,484
Custodian................................ 1,707
Cash management.......................... 415
Transfer agent........................... 2,743
Audit.................................... 200
Directors................................ 1,746
Reports to shareholders.................. 317
Registration and filings................. 366
Legal.................................... 115
Other.................................... 207
----------
TOTAL EXPENSES......................... 92,874
Fees waived by the Bank of New York...... (13,574)
----------
NET EXPENSES........................... 79,300
----------
NET INVESTMENT INCOME.................. 60,064
----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain on:
Investments............................ 224,703
Foreign currency transactions.......... 48,465
----------
Net realized gain on investments......... 273,168
----------
Increase/Decrease in unrealized
appreciation on:
Investments............................ 2,844,963
Foreign currency denominated assets and
liabilities.......................... (9,671)
----------
Net unrealized gain on investments during
the period............................. 2,835,292
----------
Net realized and unrealized gain on
investments............................ 3,108,460
----------
Net increase in net assets resulting from
operations............................. $3,168,524
----------
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
40
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD APRIL 1, 1997* THROUGH JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
OPERATIONS:
Net investment income.................................................................. $ 60,064
Net realized gain on investments and foreign currency transactions..................... 273,168
Net unrealized gain on investments and foreign currency denominated assets and
liabilities during the period........................................................ 2,835,292
----------
Net increase in net assets resulting from operations................................. 3,168,524
----------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold: Institutional Shares................................. 52,403,362
Investor Shares............................................ 302,342
Cost of capital stock repurchased: Institutional Shares................................ (304,896)
Investor Shares............................................ -0-
----------
Net increase in net assets resulting from capital stock transactions................. 52,400,808
----------
INCREASE IN NET ASSETS............................................................. 55,569,332
NET ASSETS:
Beginning of period.................................................................... -0-
----------
End of period (includes undistributed net investment income of $60,064)................ $55,569,332
----------
CHANGE IN CAPITAL STOCK OUTSTANDING:
Shares sold: Institutional Shares...................................................... 4,905,432
Investor Shares.............................................................. 27,764
Shares repurchased: Institutional Shares............................................... (27,301)
Investor Shares........................................................ -0-
----------
Net increase......................................................................... 4,905,895
Shares outstanding, beginning of period................................................ -0-
----------
Shares outstanding, end of period...................................................... 4,905,895
----------
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
41
<PAGE>
BNY HAMILTON INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL
SHARES INVESTOR SHARES
---------------- ---------------
<S> <C> <C>
FOR THE PERIOD FOR THE PERIOD
APRIL 1, 1997* MAY 1, 1997*
THROUGH THROUGH
JUNE 30, 1997 JUNE 30, 1997
---------------- ---------------
PER SHARE DATA:
Net asset value at beginning of period....................................... $ 10.00 $ 10.19
------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income........................................................ 0.01 0.01
Net realized and unrealized gain on investments and foreign currency
transactions............................................................... 1.32 1.11
------- -------
Total from investment operations........................................... 1.33 1.12
------- -------
Net asset value at end of period............................................. $ 11.33 $ 11.31
------- -------
TOTAL RETURN:................................................................ 13.30%** 10.99%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted).................................. $ 55,255 $ 314
Ratio to average net assets of:
Expenses, net of waiver from The Bank of New York.......................... 1.22%*** 1.46%***
Expenses, prior to waiver from The Bank of New York........................ 1.43%*** 1.53%***
Net investment income, net of waiver from The Bank of New York............. 0.93%*** 0.43%***
Portfolio turnover rate...................................................... 9% 9%
Average commission rate paid per share traded................................ $ 0.0309 $ 0.0309
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS FOR THE RESPECTIVE CLASS OF SHARES.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
42
<PAGE>
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ---------- ------------
<C> <S> <C>
UNITED STATES GOVERNMENT AGENCIES &
OBLIGATIONS--61.2%
UNITED STATES GOVERNMENT AGENCY
SECURITIES--23.5%
Federal Home Loan Bank,
$ 500,000 5.24%, 7/20/98................. $ 496,317
4,000,000 5.37%, 11/03/00................ 3,875,956
750,000 5.93%, 3/07/03................. 726,958
Federal Home Loan Mortgage
Corporation,
500,000 5.76%, 7/13/98................. 499,844
1,000,000 5.55%, 9/07/00................. 975,665
250,000 7.60%, 5/12/05................. 251,069
Federal National Mortgage
Association,
500,000 5.35%, 8/12/98................. 496,596
700,000 6.20%, 7/10/03................. 681,412
100,000 6.40%, 9/27/05................. 98,008
Tennessee Valley Authority,
1,500,000 6.25%, 8/01/99................. 1,499,934
1,350,000 6.00%, 11/01/00................ 1,331,524
5,000,000 6.125%, 7/15/03................ 4,866,605
------------
15,799,888
------------
UNITED STATES TREASURY NOTES--36.5%
1,460,000 5.875%, 8/15/98................ 1,459,544
3,150,000 6.375%, 1/15/99................ 3,168,705
2,000,000 6.75%, 6/30/99................. 2,024,376
1,500,000 6.875%, 8/31/99................ 1,522,500
700,000 6.875%, 3/31/00................ 711,594
3,750,000 6.75%, 4/30/00................. 3,799,219
550,000 6.25%, 2/15/03................. 545,703
4,650,000 5.75%, 8/15/03................. 4,490,156
375,000 7.875%, 11/15/04............... 404,531
2,100,000 7.50%, 2/15/05................. 2,222,063
1,555,000 6.50%, 5/15/05................. 1,553,058
2,850,000 5.875%, 11/15/05............... 2,727,094
------------
24,628,543
------------
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ---------- ------------
<C> <S> <C>
UNITED STATES GOVERNMENT AGENCIES &
OBLIGATIONS (CONTINUED)
UNITED STATES TREASURY--STRIPPED
PRINCIPAL--1.2%
$1,000,000 0.00%, 2/15/01................. $ 797,550
------------
TOTAL UNITED STATES GOVERNMENT
AGENCIES & OBLIGATIONS
(Cost $41,988,580)............. 41,225,981
------------
COLLATERALIZED MORTGAGE OBLIGATIONS--21.7%
Collateralized Mortgage
Securities Corporation,
688,000 Series 1990-7C, 9.25%,
10/20/20....................... 712,354
Federal Home Loan Mortgage
Corporation,
511,222 Series 1317-E, 7.00%,
6/15/04........................ 513,094
500,000 Series 1202-E, 7.00%,
7/15/05........................ 503,295
415,453 Series 1292-F, 7.75%,
7/15/05........................ 420,862
500,000 Series 1338-G, 6.75%,
1/15/06........................ 502,065
800,000 Series 1216-6C, 7.00%,
3/15/07........................ 797,488
221,000 Series 1679-H, 6.00%,
11/15/08....................... 210,918
302,000 Series 1455-L, 7.00%,
7/15/20........................ 296,622
1,750,000 Series 1371-PI, 6.00%,
4/15/21........................ 1,585,144
2,100,000 Series 1494-PJ, 6.85%,
1/15/22........................ 2,082,486
219,000 Series 1588-TC, 6.50%,
9/15/23........................ 204,626
500,000 Series 1621-M, 6.50%,
11/15/23....................... 475,340
574,000 Series 1669-L, 6.50%,
2/15/24........................ 542,441
Federal National Mortgage
Association,
614,165 Series 1993-47A, 6.65%,
3/25/05........................ 614,377
91,000 Series 1994-23N, 6.00%,
7/25/05........................ 84,332
500,000 Series 1992-108G, 7.00%,
8/25/05........................ 502,555
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
43
<PAGE>
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ---------- ------------
COLLATERALIZED MORTGAGE OBLIGATIONS
(CONTINUED)
<C> <S> <C>
$1,461,311 Series 1988-15A, 9.00%,
6/25/18........................ $ 1,526,301
194,047 Series 1990-31H, 7.00%,
6/25/19........................ 194,932
2,000,000 Series 1991-137G, 8.30%,
6/25/20........................ 2,032,365
946,000 Series 1993-178PK, 6.50%,
9/25/23........................ 863,357
------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost $14,573,509)............. 14,664,954
------------
MORTGAGE-BACKED SECURITIES-- 14.1%
Federal Home Loan Mortgage
Corporation,
118,558 Pool #218711, 8.00%,
10/01/02....................... 120,697
365,460 Pool #251836, 8.50%, 5/01/04... 378,243
466,972 Pool #182217, 8.00%,
12/01/04....................... 478,613
104,470 Pool #502185, 8.50%, 7/01/05... 107,351
27,467 Pool #160062, 9.50%,
10/01/08....................... 29,292
33,128 Pool #160065, 9.50%,
11/01/08....................... 35,329
32,261 Pool #160066, 9.75%,
11/01/08....................... 34,609
515,613 Pool #185743, 8.50%,
12/01/08....................... 534,644
564,504 Pool #251974, 8.50%, 4/01/09... 589,094
409,813 Pool #185964, 8.50%, 2/01/10... 426,910
364,749 Pool #555045, 8.00%, 5/01/19... 374,506
Federal National Mortgage
Association,
157,387 Pool #34510, 7.25%, 8/01/01.... 158,266
166,176 Pool #168430, 7.00%, 7/01/03... 167,217
1,028,870 Pool #195152, 7.00%, 1/01/08... 1,034,118
869,515 Pool #278437, 7.50%, 5/01/09... 884,705
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ---------- ------------
<C> <S> <C>
MORTGAGE-BACKED SECURITIES (CONTINUED)
$ 293,099 Pool #6222, 9.00%, 4/01/16..... $ 312,708
733,999 Pool #124118, 9.00%, 3/01/22... 781,342
Goldman Sachs Trust,
29,000 Series A5, 9.50%, 6/25/20...... 29,728
Government National Mortgage
Association,
47,937 Pool #6400, 8.00%, 6/15/05..... 48,971
64,936 Pool #7774, 8.00%, 9/15/05..... 66,336
65,283 Pool #7038, 8.00%, 10/15/05.... 66,691
68,669 Pool #11310, 8.00%, 11/15/05... 70,150
28,233 Pool #9839, 8.00%, 7/15/06..... 28,842
40,564 Pool #10459, 8.00%, 8/15/06.... 41,439
138,561 Pool #10419, 8.00%, 9/15/06.... 141,548
78,893 Pool #12590, 8.00%, 9/15/06.... 80,594
132,589 Pool #14295, 8.00%, 1/15/07.... 135,448
122,842 Pool #204365, 9.00%, 3/15/17... 131,854
383,464 Pool #247223, 9.00%, 4/15/18... 411,894
64,981 Pool #350532, 6.50%, 6/15/23... 62,649
226,808 Pool #359470, 7.00%, 1/15/24... 223,868
257,385 Pool #386348, 7.50%, 6/15/24... 259,172
777,065 Pool #407323, 8.25%, 4/15/25... 800,377
462,732 Pool #417331, 7.50%, 3/15/26... 463,890
------------
TOTAL MORTGAGE-BACKED
SECURITIES
(Cost $9,475,618).............. 9,511,095
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
44
<PAGE>
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ---------- ------------
REPURCHASE AGREEMENT--2.1%
<C> <S> <C>
$1,403,000 Repurchase agreement with
Deutsche Bank, 5.98%, due
7/01/97, repurchase price
$1,403,233 (Collateral--
Government National Mortgage
Association Mortgage Backed
Securities, 8.00%-8.50%,
2/15/17-3/15/22; aggregate
market value plus accrued
interest $1,445,090)
(Cost $1,403,000).............. $ 1,403,000
------------
TOTAL INVESTMENTS
(Cost $67,440,707)
(a)--99.1%..................... 66,805,030
Other assets less
liabilities--0.9%.............. 606,965
------------
NET ASSETS--100.0%............. $ 67,411,995
------------
</TABLE>
(a) THE COST STATED ALSO REPRESENTS THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT JUNE 30, 1997, NET UNREALIZED DEPRECIATION WAS $635,677 BASED
ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGREGATE GROSS
UNREALIZED APPRECIATION OF $228,920 AND AGGREGATE GROSS UNREALIZED
DEPRECIATION OF $864,597.
SEE NOTES TO FINANCIAL STATEMENTS.
45
<PAGE>
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments at market value,
(Identified cost $67,440,707)........ $66,805,030
Cash................................... 681
Receivables:
Investments sold..................... 1,751,836
Interest............................. 981,962
Deferred organization costs and other
assets............................... 9,093
-----------
TOTAL ASSETS....................... 69,548,602
-----------
LIABILITIES:
Payables:
Investments purchased................ 1,661,994
Capital stock repurchased............ 43,369
Dividends............................ 316,841
Services provided by The Bank of New
York and Administrator............. 93,144
Accrued expenses and other
liabilities.......................... 21,259
-----------
TOTAL LIABILITIES.................. 2,136,607
-----------
NET ASSETS:.............................. $67,411,995
-----------
SOURCES OF NET ASSETS:
Capital stock @ par.................... $ 6,977
Capital surplus........................ 71,075,740
Accumulated net realized loss on
investments.......................... (3,035,045)
Net unrealized depreciation on
investments.......................... (635,677)
-----------
NET ASSETS............................... $67,411,995
-----------
INSTITUTIONAL SHARES:
Net assets............................. $57,632,370
-----------
Shares Outstanding..................... 5,964,553
-----------
Net asset value, offering price and
repurchase price per share........... $ 9.66
-----------
INVESTOR SHARES:
Net assets............................. $ 9,779,625
-----------
Shares Outstanding..................... 1,012,574
-----------
Net asset value, offering price and
repurchase price per share........... $ 9.66
-----------
Institutional Shares authorized at $.001
par value.............................. 200,000,000
Investor Shares authorized at $.001 par
value.................................. 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest................................. $2,147,843
----------
EXPENSES:
Advisory................................. 160,631
Administration........................... 64,253
12b-1 fee--Investor Shares............... 5,774
Accounting services...................... 29,761
Custodian................................ 11,459
Cash management.......................... 2,097
Transfer agent........................... 21,645
Audit.................................... 2,079
Insurance................................ 1,285
Directors................................ 6,324
Reports to shareholders.................. 5,977
Registration and filings................. 10,694
Legal.................................... 1,441
Other.................................... 12,916
----------
TOTAL EXPENSES......................... 336,336
Fees waived by the Bank of New York...... (17,725)
----------
NET EXPENSES........................... 318,611
----------
NET INVESTMENT INCOME.................. 1,829,232
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized loss on investments......... (389,889)
Increase in unrealized appreciation on
investments during the period.......... 138,489
----------
Net realized and unrealized loss on
investments............................ (251,400)
----------
Net increase in net assets resulting from
operations............................. $1,577,832
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
46
<PAGE>
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, 1996
------------------ -------------------
<S> <C> <C>
OPERATIONS:
Net investment income.................................................. $ 1,829,232 $ 3,568,858
Net realized loss on investments....................................... (389,889) (535,071)
Net unrealized gain (loss) on investments during the period............ 138,489 (978,520)
------------------ -------------------
Net increase in net assets resulting from operations................. 1,577,832 2,055,267
------------------ -------------------
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income: Institutional Shares............. (808,444) -0-
Investor Shares.................. (1,020,788) (3,568,858)
------------------ -------------------
(1,829,232) (3,568,858)
------------------ -------------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold: Institutional Shares................. 58,832,949 -0-
Investor Shares...................... 5,261,828 22,217,396
Proceeds from shares issued on reinvestment of
dividends: Institutional Shares...................................... 533,051 -0-
Investor Shares........................................... 491,588 2,429,127
Cost of capital stock repurchased: Institutional Shares................ (2,504,945) -0-
Investor Shares..................... (59,067,648) (19,675,281)
------------------ -------------------
Net increase in net assets resulting from capital stock
transactions....................................................... 3,546,823 4,971,242
------------------ -------------------
INCREASE IN NET ASSETS............................................. 3,295,423 3,457,651
NET ASSETS:
Beginning of period.................................................... 64,116,572 60,658,921
------------------ -------------------
End of period.......................................................... $ 67,411,995 $ 64,116,572
------------------ -------------------
CHANGE IN CAPITAL STOCK OUTSTANDING:
Shares sold: Institutional Shares...................................... 6,169,169 -0-
Investor Shares........................................... 545,527 2,285,237
Shares issued on reinvestment of dividends: Institutional Shares....... 55,620 -0-
Investor Shares............ 50,904 250,971
Shares repurchased: Institutional Shares............................... (260,236) -0-
Investor Shares.................................... (6,193,672) (2,028,495)
------------------ -------------------
Net increase......................................................... 367,312 507,713
Shares outstanding, beginning of period................................ 6,609,815 6,102,102
------------------ -------------------
Shares outstanding, end of period...................................... 6,977,127 6,609,815
------------------ -------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
47
<PAGE>
BNY HAMILTON INTERMEDIATE GOVERNMENT FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL INVESTOR SHARES
SHARES ----------------------------------------------------------------
------------- FOR THE
FOR THE PERIOD
PERIOD APRIL SIX AUGUST 10,
1, 1997* MONTHS 1992*
THROUGH JUNE ENDED YEAR ENDED DECEMBER 31, THROUGH
30, JUNE 30, ------------------------------------ DECEMBER 31,
1997 1997 1996 1995 1994 1993 1992
------------- -------- ------- ------- ------- ------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of
period................................ $ 9.53 $ 9.70 $ 9.94 $ 9.10 $ 10.12 $ 9.87 $ 10.00
------------- -------- ------- ------- ------- ------- ------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.14 0.27 0.54 0.53 0.50 0.51 0.18
Net realized and unrealized gain (loss)
on investments........................ 0.13 (0.04) (0.24) 0.84 (1.02) 0.27 (0.13)
------------- -------- ------- ------- ------- ------- ------------
Total from investment operations...... 0.27 0.23 0.30 1.37 (0.52) 0.78 0.05
------------- -------- ------- ------- ------- ------- ------------
DIVIDENDS AND DISTRIBUTION
Dividends from net investment income.... (0.14) (0.27) (0.54) (0.53) (0.50) (0.51) (0.18)
Distribution from capital gains......... -- -- -- -- -- (0.02) --
------------- -------- ------- ------- ------- ------- ------------
Total dividends and distribution...... (0.14) (0.27) (0.54) (0.53) (0.50) (0.53) (0.18)
------------- -------- ------- ------- ------- ------- ------------
Net asset value at end of period........ $ 9.66 $ 9.66 $ 9.70 $ 9.94 $ 9.10 $ 10.12 $ 9.87
------------- -------- ------- ------- ------- ------- ------------
TOTAL RETURN:+.......................... 2.84%** 2.38%** 3.16% 15.40% (5.17)% 8.03% 0.51%**
RATIOS/SUPPLEMENTAL
DATA:
Net assets at end of period
(000's omitted)....................... $57,632 $9,780 $64,117 $60,659 $59,328 $72,069 $25,575
Ratio to average net assets of:
Expenses, net of waiver from The Bank
of New York......................... 0.90%*** 1.06%*** 1.02% 1.06% 1.07% 0.86% 0.75%***
Expenses, prior to waiver from The
Bank of New York.................... 1.01%*** 1.07%*** 1.02% 1.06% 1.10% 1.15% 1.64%***
Net investment income, net of waiver
from The Bank of
New York............................ 5.83%*** 5.58%*** 5.54% 5.52% 5.30% 5.04% 4.62%***
Portfolio turnover rate................. 19% 19% 57% 48% 49% 67% 63%
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS FOR THE RESPECTIVE CLASS OF SHARES.
** NOT ANNUALIZED.
*** ANNUALIZED.
+ TOTAL RETURN DOES NOT CONSIDER THE EFFECT OF THE SALES LOAD FOR THOSE
PERIODS WHICH THE SALES LOAD WAS IN EFFECT.
SEE NOTES TO FINANCIAL STATEMENTS.
48
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------- -------------
<C> <S> <C>
CORPORATE BONDS--43.3%
AEROSPACE & DEFENSE--2.8%
$ 9,750,000 Lockheed Martin Corp.,
7.25%, 5/15/06.............. $ 9,878,016
-------------
BANKING--5.0%
7,000,000 BankAmerica Corp., 7.125%,
3/01/09..................... 6,918,296
2,250,000 Federal Farm Credit
Bank, 6.53%, 12/23/99....... 2,246,242
2,500,000 First Union Corp., 7.00%,
3/15/06..................... 2,471,347
890,000 First Union Corp., 7.50%,
7/15/06..................... 908,726
5,000,000 Nationsbank Corp., 7.50%,
9/16/06..................... 5,125,120
-------------
17,669,731
-------------
CONGLOMERATES--1.0%
3,700,000 Tenneco Inc., 6.70%,
12/15/05.................... 3,623,295
-------------
DEPARTMENT STORES--3.2%
3,000,000 Penney (J.C.) & Co., 7.25%,
4/01/02..................... 3,067,125
3,000,000 Sears Roebuck Co., 6.95%,
5/15/02..................... 3,014,367
5,230,000 Sears Roebuck Co., 6.92%,
6/17/04..................... 5,204,498
-------------
11,285,990
-------------
ENERGY--1.5%
5,000,000 GTE Corp. 7.51%, 4/01/09.... 5,158,440
-------------
ENTERTAINMENT--1.6%
5,500,000 Time Warner Inc., 7.75%,
6/15/05..................... 5,589,699
-------------
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------- -------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
FINANCIAL SERVICES--21.8%
$ 8,000,000 Aetna Services Inc., 6.375%,
8/15/03..................... $ 7,794,647
4,250,000 Aetna Services Inc., 6.97%,
8/15/36..................... 4,299,325
1,195,000 Associates Corp., 5.60%,
1/15/01..................... 1,157,567
7,750,000 Associates Corp., 6.70%,
5/29/01..................... 7,761,601
1,575,000 Beneficial Corp., 12.875%,
8/01/13..................... 1,755,167
730,000 Dean Witter Discover & Co.,
6.30%, 1/15/06.............. 693,008
5,000,000 Ford Motor Credit 7.25%,
5/15/99..................... 5,079,404
6,250,000 Ford Motor Credit 7.00%,
9/25/01..................... 6,315,312
5,000,000 General Electric Capital
Corp., 7.875%, 12/01/06..... 5,342,740
3,850,000 General Motors Acceptance
Corp., 7.375%, 4/25/00...... 3,929,791
6,000,000 General Motors Acceptance
Corp., 6.70%, 4/18/01....... 5,991,798
665,000 General Motors Acceptance
Corp., 8.25%, 2/24/04....... 709,872
10,000,000 Goldman Sachs Group, L.P.,
6.75%, 2/15/06.............. 9,719,919
6,000,000 Lehman Brothers Holdings
7.375%, 5/15/04............. 6,053,255
2,515,000 Morgan Stanley Group, 5.75%,
2/15/01..................... 2,440,739
984,000 Salomon Inc., 6.75%,
7/15/97..................... 984,465
1,000,000 Salomon Inc., 5.84%,
8/1/97...................... 1,000,328
500,000 Salomon Inc., 6.00%,
12/15/98.................... 498,076
4,784,000 Salomon Inc., 7.50%,
2/1/03...................... 4,860,041
500,000 Salomon Inc., 6.875%,
12/15/03.................... 491,532
-------------
76,878,587
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
49
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------- -------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
FOOD PROCESSING--1.8%
$ 6,200,000 Nabisco Inc., 6.85%,
6/15/05..................... $ 6,125,196
-------------
PHARMACEUTICALS--2.9%
9,725,000 American Home Products
Corp., 7.90%, 2/15/05....... 10,325,665
-------------
TELECOMMUNICATIONS--1.7%
4,600,000 TCI Communications Inc.,
8.65%, 9/15/04.............. 4,877,863
1,000,000 US West Communications,
6.625%, 9/15/05............. 979,556
-------------
5,857,419
-------------
TOTAL CORPORATE BONDS
(Cost $151,535,866)......... 152,392,038
-------------
FOREIGN BONDS--1.4%
5,000,000 Abbey National PLC, 6.69%,
10/17/05 (Cost
$5,111,809)................. 4,898,399
-------------
ASSET-BACKED SECURITIES--3.0%
738,000 Chase Manhattan Credit Card
Master Trust,
Series 1992-1, 7.40%,
5/15/00..................... 738,709
2,200,000 Discover Card Master Trust
I, Series 1996-3, 6.05%,
8/18/08..................... 2,082,476
1,153,557 Ford Credit Grantor Trust,
Series 1995-B, 5.90%,
10/15/00.................... 1,155,137
6,540,088 Kidder Peabody Mortgage
Assets Trust,
Series 22, 9.95%, 2/01/19... 6,659,912
103,000 MBNA Master Credit Card
Trust, Series 1992-1, 7.25%,
6/15/99..................... 103,329
-------------
(Cost $11,129,868).......... 10,739,563
-------------
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------- -------------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES &
OBLIGATIONS--43.8%
UNITED STATES TREASURY NOTES--33.6%
$ 10,000,000 5.875%, 1/31/99............. $ 9,981,259
3,900,000 5.875%, 2/28/99............. 3,892,691
13,500,000 6.75%, 6/30/99.............. 13,668,762
9,000,000 6.875%, 3/31/00............. 9,149,067
19,700,000 6.75%, 4/30/00.............. 19,964,728
7,000,000 6.25%, 10/31/01............. 6,971,566
3,100,000 6.25%, 2/28/02.............. 3,083,533
5,200,000 5.75%, 8/15/03.............. 5,022,877
3,600,000 5.875%, 2/15/04............. 3,488,627
14,325,000 7.25%, 5/15/04.............. 14,933,825
18,000,000 6.50%, 5/15/05.............. 17,977,517
10,000,000 7.00%, 7/15/06.............. 10,290,630
-------------
118,425,082
-------------
UNITED STATES GOVERNMENT AGENCY
SECURITIES--10.2%
Federal Home Loan Mortgage
Corp.,
1,025,000 5.225%, 2/22/99............. 1,011,231
5,000,000 6.35%, 11/10/03............. 4,853,550
2,000,000 7.93%, 1/20/05.............. 2,144,094
665,000 5.85%, 7/15/05.............. 665,525
Federal National Mortgage
Association,
1,325,000 6.59%, 5/24/01.............. 1,331,254
4,385,000 6.20%, 7/10/03.............. 4,273,835
5,760,000 5.99%, 10/01/03............. 5,531,207
3,000,000 6.85%, 4/05/04.............. 3,035,043
2,950,000 7.375%, 3/28/05............. 3,073,088
5,300,000 7.00%, 8/25/22.............. 5,290,831
Tennessee Valley Authority,
2,500,000 6.00%, 11/01/00............. 2,467,982
2,146,000 6.125%, 7/15/03............. 2,091,337
-------------
35,768,977
-------------
TOTAL U.S. GOVERNMENT
AGENCIES & OBLIGATIONS
(Cost $154,726,070)......... 154,194,059
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
50
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------- -------------
<C> <S> <C>
MORTGAGE-BACKED SECURITIES-- 4.6%
Federal Home Loan Mortgage
Corp.,
$ 188,105 Pool #180686, 6.00%,
8/01/03..................... $ 182,995
271,359 Pool #160074, 10.00%,
4/01/09..................... 294,126
1,249,347 Pool #180006, 9.25%,
8/01/11..................... 1,330,154
Government National Mortgage
Association,
182,584 Pool #13416, 8.00%,
9/15/06..................... 186,749
109,973 Pool #13688, 8.00%,
11/15/06.................... 112,482
145,828 Pool #12766, 8.00%,
12/15/06.................... 149,155
116,562 Pool #16080, 7.50%,
4/15/07..................... 116,999
1,227,448 Pool #21598, 8.00%,
2/15/08..................... 1,255,450
287,922 Pool #27246, 9.00%,
12/15/08.................... 304,388
119,313 Pool #31570, 9.50%,
6/15/09..................... 128,746
145,364 Pool #34366, 9.50%,
9/15/09..................... 156,856
76,161 Pool #33765, 9.50%,
10/15/09.................... 82,183
135,556 Pool #34704, 9.50%,
10/15/09.................... 147,587
800,867 Pool #171774, 9.00%,
9/15/16..................... 846,667
373,951 Pool #199885, 9.50%,
11/15/17.................... 403,516
168,028 Pool #251646, 9.50%,
4/15/18..................... 181,313
101,207 Pool #290313, 9.50%,
5/15/20..................... 109,209
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------- -------------
<C> <S> <C>
MORTGAGE-BACKED SECURITIES (CONTINUED)
$ 1,241,912 Pool #319650, 7.00%,
11/15/22.................... $ 1,220,570
1,992,278 Pool #349306, 8.00%,
2/15/23..................... 2,049,954
1,105,522 Pool #360780, 7.50%,
2/15/24..................... 1,114,576
1,755,002 Pool #362262, 7.50%,
4/15/24..................... 1,761,589
733,935 Pool #384069, 7.50%,
4/15/24..................... 736,689
963,302 Pool #417191, 7.50%,
1/15/26..................... 966,917
2,345,923 Pool #417331, 7.50%,
3/15/26..................... 2,354,728
-------------
TOTAL MORTGAGE-BACKED
SECURITIES
(Cost $15,950,044).......... 16,193,598
-------------
COLLATERALIZED MORTGAGE OBLIGATIONS--1.1%
Federal Home Loan Mortgage
Corp.,
1,000,000 Series 1678CA, 6.00%,
2/15/09..................... 906,140
992,790 Series 1627PJ, 6.00%,
3/15/23..................... 913,962
2,200,000 Series 1634G, 6.00%,
12/15/23.................... 1,888,022
-------------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(Cost $3,594,113)........... 3,708,124
-------------
MUNICIPAL BONDS--1.2%
4,250,000 New York State Dormitory
Authority, 6.23%, 10/01/98
(Cost $4,250,000)........... 4,245,452
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
51
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------- -------------
<C> <S> <C>
REPURCHASE AGREEMENT--0.7%
$ 2,617,000 Repurchase agreement with
Deutsche Bank, 5.98%, due
7/01/97, repurchase price
$2,617,435 (Collateral--U.S.
Treasury Note, 6.625%,
5/15/07; aggregate market
value plus accrued interest
$2,669,893)
(Cost $2,617,000)........... $ 2,617,000
-------------
TOTAL INVESTMENTS
(Cost $348,914,770) (a)--
99.1%....................... 348,988,233
Other assets less
liabilities--0.9%........... 3,242,887
-------------
NET ASSETS--100.0%.......... $ 352,231,120
-------------
</TABLE>
(a) THE COST STATED ALSO REPRESENTS THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT JUNE 30, 1997, NET UNREALIZED APPRECIATION WAS $73,463 BASED ON
COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGREGATE GROSS
UNREALIZED APPRECIATION OF $2,901,599 AND AGGREGATE GROSS UNREALIZED
DEPRECIATION OF $2,828,136.
SEE NOTES TO FINANCIAL STATEMENTS.
52
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments at market value,
(Identified cost $348,914,770)...... $348,988,233
Receivables:
Investments sold.................... 2,654,670
Interest............................ 5,721,405
Capital stock sold.................. 233,704
------------
TOTAL ASSETS...................... 357,598,012
------------
LIABILITIES:
Due to custodian...................... 53,023
Payables:
Investments purchased............... 2,949,599
Capital stock repurchased........... 116,836
Dividends........................... 1,753,521
Services provided by The Bank of New
York and Administrator............ 441,168
Accrued expenses and other
liabilities......................... 52,745
------------
TOTAL LIABILITIES................... 5,366,892
------------
NET ASSETS:............................. $352,231,120
------------
SOURCES OF NET ASSETS:
Capital stock @ par................... $ 352,819
Capital surplus....................... 352,466,134
Accumulated net realized loss on
investments......................... (661,296)
Net unrealized appreciation on
investments......................... 73,463
------------
NET ASSETS.............................. $352,231,120
------------
INSTITUTIONAL SHARES:
Net assets............................ $352,218,971
------------
Shares Outstanding.................... 34,636,536
------------
Net asset value, offering price and
repurchase price per share.......... $ 10.17
------------
INVESTOR SHARES:
Net assets............................ $ 12,149
------------
Shares Outstanding.................... 1,195
------------
Net asset value, offering price and
repurchase price per share.......... $ 10.17
------------
Institutional Shares authorized at $.001
par value............................. 200,000,000
Investor Shares authorized at $.001 par
value................................. 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE PERIOD APRIL 1, 1997* THROUGH
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest................................. $6,265,884
----------
EXPENSES:
Advisory................................. 433,749
Administration........................... 173,500
12b-1 fee--Investor Shares............... 3
Accounting services...................... 14,956
Custodian................................ 21,192
Cash management.......................... 5,734
Transfer agent........................... 24,931
Audit.................................... 4,338
Directors................................ 1,746
Reports to shareholders.................. 8,601
Registration and filings................. 6,108
Legal.................................... 2,468
Other.................................... 3,666
----------
TOTAL EXPENSES......................... 700,992
----------
NET INVESTMENT INCOME.................. 5,564,892
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized loss on investments......... (661,296)
Increase in unrealized appreciation on
investments during the period.......... 73,463
----------
Net realized and unrealized loss on
investments............................ (587,833)
----------
Net increase in net assets resulting from
operations............................. $4,977,059
----------
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
53
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD APRIL 1, 1997* THROUGH JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
OPERATIONS:
Net investment income................................................................. $ 5,564,892
Net realized loss on investments...................................................... (661,296)
Net unrealized gain on investments during the period.................................. 73,463
------------
Net increase in net assets resulting from operations................................ 4,977,059
------------
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income: Institutional Shares............................ (5,564,819)
Investor Shares................................. (73)
------------
(5,564,892)
------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold: Institutional Shares................................ 360,308,718
Investor Shares..................................... 12,000
Proceeds from shares issued on reinvestment of dividends: Institutional Shares........ 83,482
Investor Shares............. 17
Cost of capital stock repurchased: Institutional Shares............................... (7,585,264)
Investor Shares.................................... -0-
------------
Net increase in net assets resulting from capital stock transactions................ 352,818,953
------------
INCREASE IN NET ASSETS............................................................ 352,231,120
NET ASSETS:
Beginning of period................................................................... -0-
------------
End of period......................................................................... $352,231,120
------------
CHANGE IN CAPITAL STOCK OUTSTANDING:
Shares sold: Institutional Shares..................................................... 35,377,446
Investor Shares.......................................................... 1,193
Shares issued on reinvestment of dividends: Institutional Shares...................... 8,257
Investor Shares........................... 2
Shares repurchased: Institutional Shares.............................................. (749,167)
Investor Shares................................................... -0-
------------
Net increase.......................................................................... 34,637,731
Shares outstanding, beginning of period............................................... -0-
------------
Shares outstanding, end of period..................................................... 34,637,731
------------
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
54
<PAGE>
BNY HAMILTON INTERMEDIATE INVESTMENT GRADE FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL INVESTOR
SHARES SHARES
------------- ---------------
FOR THE
PERIOD
APRIL 1, FOR THE PERIOD
1997* MAY 1, 1997*
THROUGH THROUGH
JUNE 30, 1997 JUNE 30, 1997
------------- ---------------
<S> <C> <C>
PER SHARE DATA:
Net asset value at beginning of period....................... $ 10.00 $ 10.08
------------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income........................................ 0.15 0.10
Net realized and unrealized gain on investments.............. 0.17 0.09
------------- ------
Total from investment operations........................... 0.32 0.19
------------- ------
DIVIDENDS
Dividends from net investment income......................... (0.15) (0.10)
------------- ------
Net asset value at end of period............................. $ 10.17 $ 10.17
------------- ------
TOTAL RETURN:................................................ 3.26%** 1.89%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted).................. $ 352,219 $ 12
Ratio to average net assets of:
Expenses................................................... 0.81%*** 1.04%***
Net investment income...................................... 6.41%*** 5.72%***
Portfolio turnover rate...................................... 26% 26%
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS FOR THE RESPECTIVE CLASS OF SHARES.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
55
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE MARKET VALUE
- ---------- ------------------ ----------- --------- ------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS--96.8%
CERTIFICATES OF PARTICIPATION--1.3%
$ 500,000 New York Certificate of Participation............... BAA1/BBB 5.000% 03/01/00 $ 504,365
------------
EDUCATION--12.0%
235,000 Dutchess County, New York IDA Civic Facility
Revenue, Bard College............................... A3/NR 6.000 11/01/99 240,727
250,000 New York State Dormitory Authority, Columbia
University.......................................... Aaa/AA+ 5.000 07/01/00 255,162
1,000,000 New York State Dormitory Authority, Cornell
University.......................................... Aa2/AA 4.600 07/01/00 1,010,890
1,500,000 New York State Dormitory Authority, New York
University, MBIA Insured+........................... Aaa/AAA 5.500 07/01/04 1,571,805
1,000,000 New York State Dormitory Authority, Strong Memorial
Hospital (University of Rochester).................. A1/A+ 5.000 07/01/02 1,018,590
500,000 New York State Dormitory Authority, University of
Rochester........................................... A1/A+ 4.700 07/01/00 505,155
------------
4,602,329
------------
GENERAL OBLIGATION--8.1%
60,000 Monroe County, New York Series B, Unrefunded
Balance, Callable 6/01/98 @ 102..................... Aa/AA- 7.000 06/01/03 62,825
500,000 Monroe County, New York, MBIA Insured+.............. Aaa/AAA 4.800 06/01/02 508,520
1,000,000 New York State, General Obligation.................. A2/A- 4.600 03/15/01 1,003,930
1,000,000 New York State, General Obligation.................. A2/A- 5.125 06/15/04 1,020,790
500,000 New York State Municipal Bond Bank Agency
(City of Rochester)................................. NR/A+ 6.400 03/15/01 529,445
------------
3,125,510
------------
HEALTH CARE--2.7%
500,000 New York State Dormitory Authority, Nursing Home Our
Lady, FHA Insured+.................................. NR/AA 5.200 08/01/05 506,560
500,000 New York State Medical Care Facilities--Downstate
Medical Center, FHA Insured+........................ NR/AAA 5.700 02/15/04 526,410
------------
1,032,970
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
56
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE MARKET VALUE
- ---------- ------------------ ----------- --------- ------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
HOUSING--2.7%
$ 500,000 New York State Mortgage Revenue--Homeowner Mtg
Series 39........................................... Aa2/NR 5.300% 04/01/04 $ 509,555
500,000 New York State Mortgage Revenue--Homeowner Mtg
Series 37-A......................................... Aa2/NR 5.850 04/01/06 510,655
------------
1,020,210
------------
INDUSTRIAL DEVELOPMENT BONDS--6.5%
500,000 Hempstead Town--New York Industrial Development
Agency.............................................. Aaa/A3 4.875 12/01/06 496,810
1,000,000 Hempstead Town--New York Industrial Development
Agency.............................................. Aaa/A3 5.000 12/01/07 997,550
1,000,000 Westchester County Industrial Development Agency
Series A............................................ Aaa/AAA 4.850 07/01/00 1,013,930
------------
2,508,290
------------
PREREFUNDED/ESCROWED/US GUARANTEED--4.1%
960,000 New York State Housing Finance Agency, ETM State
University Construction............................. Aaa/AAA 6.500 11/01/06 1,040,659
219,000 Puerto Rico Aqueduct & Sewer Authority, ETM......... Aaa/AAA 4.200 07/01/00 217,246
332,000 Puerto Rico Aqueduct & Sewer Authority, ETM......... Aaa/AAA 4.500 07/01/02 332,767
------------
1,590,672
------------
SPECIAL TAX--20.0%
1,000,000 MTA Dedicated Tax, MBIA Insured+.................... Aaa/A3 6.000 04/01/05 1,078,850
1,000,000 Municipal Assistance Corp. for New York City........ Aa2/AA- 4.800 07/01/03 1,008,300
2,500,000 Municipal Assistance Corp. for New York City........ Aa2/AA- 6.000 07/01/05 2,685,375
300,000 New York State Local Government Assistance Corp. ... A3/A 6.700 04/01/00 317,760
1,000,000 New York State Local Government Assistance Corp. ... A3/A 5.300 04/01/00 1,023,280
340,000 New York State Local Government Assistance Corp. ... A3/A 6.750 04/01/02 369,774
655,000 New York State Local Government Assistance Corp. ... A3/A 5.000 04/01/02 666,587
500,000 New York State Local Government Assistance Corp. ... A3/A 4.800 04/01/05 497,725
------------
7,647,651
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
57
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE MARKET VALUE
- ---------- ------------------ ----------- --------- ------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
STATE APPROPRIATION--19.2%
$1,000,000 Metropolitan Transportation Authority Service
Contract Revenue.................................... Baa1/BBB 5.750% 07/01/07 $ 1,037,730
650,000 New York State Dormitory Authority, Upstate
Community Colleges.................................. Baa1/BBB 5.600 07/01/07 667,017
500,000 New York State Dormitory Authority, State
University.......................................... Baa1/BBB+ 5.500 05/15/07 509,120
500,000 New York State Thruway Authority Service Contract
Highway & Bridge Trust Fund......................... Baa1/BBB 5.500 04/01/01 513,405
1,000,000 New York State Thruway Authority Service Contract
Highway & Bridge Trust Fund......................... Baa1/BBB 5.625 04/01/07 1,027,480
500,000 New York State Medical Care Facilities--Mental
Health.............................................. Baa1/BBB+ 4.600 08/15/99 501,180
505,000 New York State Medical Care Facilities--Mental
Health.............................................. Baa1/BBB+ 4.700 08/15/01 503,031
480,000 New York State Medical Care Facilities--Mental
Health.............................................. Baa1/BBB+ 6.100 08/15/02 506,683
300,000 New York State Medical Care Facilities--Mental
Health.............................................. Baa1/BBB+ 5.200 05/15/03 303,309
1,000,000 New York State Urban Development Corp.--Cornell
Center.............................................. Baa1/NR 5.900 01/01/07 1,022,470
750,000 New York State Urban Development Corp.--
Correctional Capital Facility--Series 7............. Baa1/BBB 6.000 01/01/07 791,092
------------
7,382,517
------------
TRANSPORTATION--11.1%
1,500,000 New York State Thruway Authority General Revenue.... Aa3/AA- 5.250 01/01/01 1,538,040
650,000 Port Authority of New York & New Jersey............. A1/AA- 5.100 08/01/01 667,069
500,000 Port Authority of New York & New Jersey............. A1/AA- 6.100 10/15/02 537,500
1,000,000 Port Authority of New York & New Jersey............. A1/AA- 5.300 08/01/03 1,037,290
500,000 Triborough Bridge & Tunnel Authority General
Purpose............................................. Aa/A+ 4.300 01/01/02 495,280
------------
4,275,179
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
58
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY
AMOUNT RATINGS RATE DATE MARKET VALUE
- ---------- ------------------ ----------- --------- ------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
UTILITY--6.6%
$ 400,000 New York State Environmental Facility Corp. PCR
Water Revol......................................... Aaa/AAA 6.300% 09/15/00 $ 424,076
300,000 New York State Environmental Facility Corp. PCR
State Water......................................... Aaa/AAA 6.000 05/15/02 319,890
500,000 New York State Power Authority...................... Aa/AA- 7.500 01/01/02 518,710
1,250,000 New York State Power Authority...................... Aa/AA- 4.900 01/01/06 1,253,113
------------
2,515,789
------------
OTHER--2.5%
350,000 New York City, Trust for Cultural Resources Museum
MOMA--AMBAC Insured+................................ Aaa/AAA 6.300 01/01/03 382,501
205,000 New York City, Trust for Cultural Resources Museum
MOMA--AMBAC Insured+................................ Aaa/AAA 4.900 01/01/01 208,893
135,000 New York City, Trust for Cultural Resources Museum
MOMA--AMBAC Insured+................................ Aaa/AAA 4.900 01/01/01 137,871
165,000 New York City, Trust for Cultural Resources Museum
MOMA--AMBAC Insured+................................ Aaa/AAA 5.000 01/01/02 168,802
75,000 New York City, Trust for Cultural Resources Museum
MOMA--AMBAC Insured+................................ Aaa/AAA 5.000 01/01/02 77,005
------------
975,072
------------
TOTAL MUNICIPAL BONDS (Cost $36,549,983)............ 37,180,554
------------
TAX-EXEMPT MONEY MARKET FUND--1.8%
702,566 Dreyfus New York Municipal Cash Management
(Cost $702,566)..................................... NR/NR 3.789(a) 702,566
------------
TOTAL INVESTMENTS (Cost $37,252,549) (b)--98.6%..... 37,883,120
Other assets less liabilities--1.4%................. 527,507
------------
NET ASSETS--100%.................................... $ 38,410,627
------------
</TABLE>
NR NOT RATED BY MOODY'S OR STANDARD & POOR'S (S&P).
+ INSURED OR GUARANTED BY THE INDICATED MUNICIPAL BOND INSURANCE CORPORATION.
(a) REPRESENTS ANNUALIZED YIELD AT JUNE 30, 1997.
(b) THE COST STATED ALSO REPRESENTS THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT JUNE 30, 1997, NET UNREALIZED APPRECIATLION WAS $630,571 BASED
ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGREGATE GROSS
UNREALIZED APPRECIATION OF $641,188 AND AGGREGATE GROSS UNREALIZED
DEPRECIATION OF $10,617.
SEE NOTES TO FINANCIAL STATEMENTS.
59
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments at market value,
(Identified cost $37,252,549)........ $37,883,120
Cash................................... 4,663
Receivables:
Interest............................. 713,414
Capital stock sold................... 50,000
Deferred organization costs and other
assets............................... 11,977
-----------
TOTAL ASSETS......................... 38,663,174
-----------
LIABILITIES:
Payables:
Investments purchased................ 50,000
Dividends............................ 122,472
Services provided by The Bank of New
York and Administrator............. 47,144
Accrued expenses and other
liabilities.......................... 32,931
-----------
TOTAL LIABILITIES.................... 252,547
-----------
NET ASSETS:.............................. $38,410,627
-----------
SOURCES OF NET ASSETS:
Capital stock @ par.................... $ 3,725
Capital surplus........................ 38,011,161
Accumulated net realized loss on
investments.......................... (234,830)
Net unrealized appreciation on
investments.......................... 630,571
-----------
NET ASSETS............................... $38,410,627
-----------
INSTITUTIONAL SHARES:
Net assets............................. $27,657,645
-----------
Shares Outstanding..................... 2,682,163
-----------
Net asset value, offering price and
repurchase price per share........... $ 10.31
-----------
INVESTOR SHARES:
Net assets............................. $10,752,982
-----------
Shares Outstanding..................... 1,042,773
-----------
Net asset value, offering price and
repurchase price per share........... $ 10.31
-----------
Institutional Shares authorized at $.001
par value.............................. 200,000,000
Investor Shares authorized at $.001 par
value.................................. 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................. $ 904,298
---------
EXPENSES:
Advisory.................................. 91,489
Administration............................ 36,590
12b-1 fee--Investor Shares................ 6,725
Accounting services....................... 29,761
Custodian................................. 6,325
Cash management........................... 1,310
Transfer agent............................ 21,815
Audit..................................... 1,451
Insurance................................. 889
Directors................................. 6,324
Reports to shareholders................... 2,309
Registration and filings.................. 10,125
Legal..................................... 985
Other..................................... 10,881
---------
TOTAL EXPENSES.......................... 226,979
Fees waived by The Bank of New York....... (55,585)
---------
NET EXPENSES............................ 171,394
---------
NET INVESTMENT INCOME................... 732,904
---------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS--
Net realized gain on investments.......... 80,365
Increase in unrealized appreciation on
investments during the period........... 11,417
---------
Net realized and unrealized gain on
investments............................. 91,782
---------
Net increase in net assets resulting from
operations.............................. $ 824,686
---------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
60
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, 1996
---------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income............................................................ $ 732,904 $ 1,511,209
Net realized gain on investments................................................. 80,365 144,496
Increase in unrealized appreciation (depreciation) on investments during the
period......................................................................... 11,417 (335,080)
---------------- -----------------
Net increase in net assets resulting from operations........................... 824,686 1,320,625
---------------- -----------------
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income: Institutional Shares....................... (269,998) -0-
Investor Shares............................ (462,906) (1,511,209)
---------------- -----------------
(732,904) (1,511,209)
---------------- -----------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold: Institutional Shares........................... 28,367,483 -0-
Investor Shares................................ 2,523,004 6,200,028
Proceeds from shares issued on reinvestment of dividends: Institutional Shares... 24,791 -0-
Investor Shares........ 154,846 493,674
Cost of capital stock repurchased: Institutional Shares.......................... (1,121,091) -0-
Investor Shares............................... (28,366,954) (10,697,287)
---------------- -----------------
Increase (decrease) in net assets resulting from capital stock transactions.... 1,582,079 (4,003,585)
---------------- -----------------
INCREASE (DECREASE) IN NET ASSETS............................................ 1,673,861 (4,194,169)
NET ASSETS:
Beginning of period.............................................................. 36,736,766 40,930,935
---------------- -----------------
End of period.................................................................... $ 38,410,627 $ 36,736,766
---------------- -----------------
CHANGE IN CAPITAL STOCK OUTSTANDING:
Shares sold: Institutional Shares................................................ 2,789,767 -0-
Investor Shares..................................................... 246,686 607,912
Shares issued on reinvestment of dividends: Institutional Shares................. 2,433 -0-
Investor Shares...................... 15,129 48,215
Shares repurchased: Institutional Shares......................................... (110,037) -0-
Investor Shares.............................................. (2,790,002) (1,044,692)
---------------- -----------------
Net increase (decrease)........................................................ 153,976 (388,565)
Shares outstanding, beginning of period.......................................... 3,570,960 3,959,525
---------------- -----------------
Shares outstanding, end of period................................................ 3,724,936 3,570,960
---------------- -----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
61
<PAGE>
BNY HAMILTON INTERMEDIATE NEW YORK TAX-EXEMPT FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL INVESTOR SHARES
SHARES --------------------------------------------------------------
------------- FOR THE
FOR THE PERIOD
PERIOD SIX AUGUST 10,
APRIL 1, MONTHS 1992*
1997* ENDED YEAR ENDED DECEMBER 31, THROUGH
THROUGH JUNE 30, ---------------------------------- DECEMBER 31,
JUNE 30, 1997 1997 1996 1995 1994 1993 1992
------------- -------- ------- ------- ------- ------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of period....... $ 10.16 $ 10.29 $ 10.34 $ 9.59 $ 10.37 $ 9.97 $ 10.00
------------- -------- ------- ------- ------- ------- ------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income........................ 0.10 0.20 0.40 0.39 0.39 0.38 0.15
Net realized and unrealized gain (loss) on
investments................................ 0.15 0.02 (0.05) 0.75 (0.78) 0.40 (0.03)+
------------- -------- ------- ------- ------- ------- ------------
Total from investment operations........... 0.25 0.22 0.35 1.14 (0.39) 0.78 0.12
------------- -------- ------- ------- ------- ------- ------------
DIVIDENDS
Dividends from net investment income......... (0.10) (0.20) (0.40) (0.39) (0.39) (0.38) (0.15)
------------- -------- ------- ------- ------- ------- ------------
Net asset value at end of period............. $ 10.31 $ 10.31 $ 10.29 $ 10.34 $ 9.59 $ 10.37 $ 9.97
------------- -------- ------- ------- ------- ------- ------------
TOTAL RETURN:++.............................. 2.51%** 2.16%** 3.47% 12.08% (3.81)% 7.99% 1.18%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's
omitted)................................... $27,658 $10,753 $36,737 $40,931 $43,213 $55,871 $19,717
Ratio to average net assets of:
Expenses, net of waiver from The Bank of
New York and Administrator............... 0.90%*** 0.96%*** 0.90% 0.90% 0.85% 0.68% 0.60%***
Expenses, prior to waiver from The Bank of
New York and Administrator............... 1.16%*** 1.28%*** 1.18% 1.20% 1.20% 1.30% 1.96%***
Net investment income, net of waiver from
The Bank of New York and Administrator... 4.06%*** 3.97%*** 3.91% 3.89% 3.92% 3.74% 3.79%***
Portfolio turnover rate...................... 17% 17% 22% 4% 18% 6% --
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS FOR THE RESPECTIVE CLASS OF SHARES.
** NOT ANNUALIZED.
*** ANNUALIZED.
+ THE AMOUNT SHOWN IS NOT IN ACCORDANCE WITH THE CHANGE IN THE AGGREGATE GAINS
AND LOSSES OF THE PORTFOLIO SECURITIES DURING THE PERIOD AUGUST 10, 1992
THROUGH DECEMBER 31, 1992 DUE TO THE TIMING OF SALES AND REPURCHASES OF
SHARES OF THE FUND.
++ TOTAL RETURN DOES NOT CONSIDER THE EFFECT OF THE SALES LOAD FOR THOSE
PERIODS WHICH THE SALES LOAD WAS IN EFFECT.
SEE NOTES TO FINANCIAL STATEMENTS.
62
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY MARKET
AMOUNT RATINGS RATE DATE VALUE
- ---------- ------------- ----------- --------- -------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS--99.2%
EDUCATION--6.8%
$2,000,000 Georgetown University, Callable 4/01/98 @102......... A1/A+ 8.125% 04/01/08 $ 2,095,220
2,000,000 Indiana Secondary Market Educational Loans........... Aaa/NR 5.300 09/01/99 2,028,460
5,950,000 New England Student Loan Revenue Series A............ Aaa/NR 5.800 03/01/02 6,190,796
1,115,000 New England Student Loan Revenue Series D............ Aaa/NR 6.000 09/01/99 1,149,119
2,475,000 New York State Dormitory Authority, Strong Memorial
Hospital (University of Rochester), Callable 7/01/06
@100................................................. A1/A+ 5.750 07/01/14 2,481,880
990,000 New York State Dormitory Authority, University of
Rochester............................................ A1/A+ 6.200 07/01/02 1,010,929
2,185,000 Texas A & M University Revenue, Callable 5/15/07
@100................................................. Aa2/AA 5.000 05/15/08 2,174,009
1,000,000 University of Texas.................................. Aaa/AAA 6.700 07/01/05 1,101,540
-------------
18,231,953
-------------
GENERAL OBLIGATION--29.2%
1,000,000 Aldine Texas Independent School District, Callable
2/15/07 @100......................................... Aaa/AAA 5.375 02/15/09 1,015,330
1,620,000 Broward County Florida............................... Aa/AA 5.300 01/01/99 1,648,058
3,000,000 Connecticut State Series A........................... Aa3/AA- 5.000 05/15/04 3,057,480
990,000 Connecticut State Series B, Callable 7/15/00 @102.... Aa3/AA- 6.600 07/15/01 1,067,814
2,500,000 Delaware State Series A.............................. Aa1/AA+ 5.125 04/01/05 2,568,175
400,000 Du Page County Illinois--Stormwater Project.......... Aaa/AAA 4.250 01/01/98 400,876
1,450,000 Georgia State, Callable 9/01/97 @101.50.............. Aaa/AA+ 6.750 09/01/98 1,478,275
5,000,000 Georgia State Series C............................... Aaa/AA+ 5.250 07/01/08 5,160,350
990,000 Illinois State (Anti-Pollution) Series D............. Aa3/AA- 4.000 01/01/00 979,555
4,375,000 Illinois State....................................... Aa3/AA- 4.300 12/01/02 4,295,244
2,000,000 Illinois State, Callable 2/01/07 @101................ Aaa/AA3 5.125 02/01/10 1,978,720
500,000 Illinois State....................................... Aa3/AA- 5.500 08/01/01 518,830
2,840,000 Kings County Washington Series A..................... Aa1/AA+ 5.000 01/01/04 2,887,258
3,000,000 Maryland State & Local Facilities Loan--1st Series,
Callable 3/01/07 @101.50............................. Aaa/AAA 5.000 03/01/11 2,961,810
2,185,000 Maryland State & Local Facilities Loan--2nd Series... Aaa/AAA 5.250 06/15/05 2,266,916
2,000,000 Maryland State & Local Facilities Loan--3rd Series,
Callable 10/15/06 @100............................... Aaa/AAA 5.000 10/15/07 2,032,560
1,485,000 Massachusetts State--Construction Loan Series A...... A1/A+ 7.200 02/01/99 1,552,924
3,150,000 Massachusetts State--Construction Loan Series A...... A1/A+ 4.900 07/01/01 3,201,439
1,485,000 Massachusetts State--Construction Loan Series A...... A1/A+ 5.100 11/01/02 1,523,224
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
63
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY MARKET
AMOUNT RATINGS RATE DATE VALUE
- ---------- ------------- ----------- --------- -------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
$2,000,000 Massachusetts State--Construction Loan Series D...... Aaa/AAA 5.125% 11/01/03 $ 2,059,240
1,065,000 Mesquite Texas Independent School District #1........ Aaa/AAA 8.125 08/15/01 1,209,606
2,000,000 Milwaukee Wisconsin Metropolitan Sewer District...... Aa/AA 6.250 10/01/04 2,191,060
2,070,000 Minnesota State, Callable 11/01/06 @100.............. Aaa/AA+ 5.000 11/01/08 2,080,598
1,000,000 Minnesota State...................................... Aaa/AA+ 4.900 08/01/01 1,020,730
250,000 Monroe County, New York, AMBAC Insured+.............. Aaa/AAA 6.000 06/01/11 274,025
990,000 Nevada State Municipal Bond Bank Project #4 Series
A.................................................... Aa2/AA 6.700 02/01/01 1,056,231
3,215,000 Nevada State Municipal Bond Bank Project #52 Series
A.................................................... Aa2/AA 6.375 05/15/06 3,557,655
4,470,000 Nevada State Series A................................ Aa2/AA 4.375 08/01/03 4,396,022
2,000,000 New Jersey State Series E............................ Aa1/AA+ 5.000 07/15/04 2,050,040
1,980,000 New York State....................................... A2/A- 5.750 09/15/98 2,019,145
2,650,000 Pennsylvania State--First Series, Callable 4/15/03
@101.50.............................................. Aaa/AAA 5.000 04/15/09 2,619,604
2,970,000 Pennsylvania State--First Series..................... A1/AA- 5.000 05/01/03 3,022,420
3,000,000 Rhode Island--Construction Capital Loan, Callable
08/01/07 @101........................................ Aaa/AAA 5.000 08/01/09 2,954,460
2,500,000 South Carolina State--Capital Improvement............ Aaa/AAA 4.400 04/01/04 2,462,825
1,000,000 Texas State Public Authority Building (State
Technical College), MBIA Insured+.................... Aaa/AAA 6.100 08/01/04 1,086,010
500,000 Tulsa, Oklahoma...................................... Aa2/AA 5.150 06/01/03 515,135
1,000,000 Washington State Series A............................ Aa1/AA 6.700 02/01/05 1,118,890
1,500,000 Washington State Series R-93B........................ Aa1/AA 5.375 10/01/08 1,558,980
-------------
77,847,514
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
64
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY MARKET
AMOUNT RATINGS RATE DATE VALUE
- ---------- ------------- ----------- --------- -------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
HEALTH CARE--2.7%
$2,000,000 Michigan State (Hospital Henry Ford Health)
Series A............................................. Aa2/AA 4.700% 11/15/02 $ 1,993,140
1,335,000 New York State Medical Care Facilities Financial
Agency--Hospital & Nursing Home, Series A, FHA
Insured+............................................. Aa2/AA 7.000 02/15/99 1,386,851
1,000,000 New York State Medical Care Facilities Financial
Agency Series D, FHA Insured+........................ Aa2/AA+ 5.100 02/15/05 1,026,940
640,000 New York State Medical Care Facilities (St Luke's
Hospital) Series A, FHA Insured+, Callable 2/15/00
@102................................................. Aa2/AA 7.400 02/15/09 686,407
2,000,000 Pennsylvania State Higher Educational Facilities
Authority--(University of Pennsylvania) Series B..... Aa3/AA 5.000 01/01/04 2,028,800
-------------
7,122,138
-------------
HOUSING--1.6%
500,000 Connecticut State Housing Financial Authority--
Housing Mortgage Finance Program Series C-2.......... Aa3/AA 5.300 11/15/03 509,820
500,000 Maine State Housing Authority Mortgage Series A-1.... Aa2/AA 4.250 11/15/99 498,975
240,000 Minnesota State Housing Financial Agency--Single
Family Mortgage Series D............................. Aa2/AA+ 4.350 01/01/99 240,497
335,000 Minnesota State Housing Financial Agency--Single
Family Mortgage Series D............................. Aa2/AA+ 4.500 01/01/00 336,022
990,000 New York State Mortgage Agency--Homeowner Mortgage
Series FF, Callable 4/01/08 @100..................... Aa2/NR 7.850 10/01/08 1,016,047
1,645,000 New York State Mortgage Agency Series EE-3........... Aa2/NR 7.700 10/01/01 1,739,982
-------------
4,341,343
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
65
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY MARKET
AMOUNT RATINGS RATE DATE VALUE
- ---------- ------------- ----------- --------- -------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
INDUSTRIAL DEVELOPMENT REVENUE--1.9%
$2,000,000 Georgetown County South Carolina Pollution Control
Facilities (International Paper Company Project),
Callable 6/15/02 @102................................ A/A- 6.250% 06/15/05 $ 2,125,320
75,000 Gulf Coast Waste Disposable Authority, PCR (Champion
International--Atlantic Richfield), Callable 11/01/97
@100................................................. Baa2/NR 5.800 05/01/98 74,690
2,910,000 Puerto Rico Industrial Medical & Environmental
Pollution Control (Intel Corp Project) "AFICA" Series
A.................................................... A1/A+ 4.000 09/01/13 2,912,503
-------------
5,112,513
-------------
PRE-REFUNDING ESCROWED--21.5%
85,000 Austin Texas Utility System Series B, ETM, Callable
11/15/98 @102........................................ A2/A 7.250 11/15/03 97,267
2,300,000 Clearwater Florida Utility Revenue, ETM.............. Aaa/AAA 6.100 12/01/04 2,386,710
990,000 Connecticut State Clean Water Funding Revenue,
Callable 1/01/01 @102................................ Aaa/AA+ 6.750 07/01/04 1,078,724
1,980,000 Connecticut State Special Tax Obligation Revenue
Series B............................................. A1/AA- 7.300 06/01/01 2,079,376
1,625,000 Delaware River Port Authority Pennsylvania & New
Jersey River Bridges, ETM............................ Aaa/AAA 6.500 01/15/11 1,778,855
790,000 Fort Worth Texas General Purpose Series B, ETM....... Aaa/AAA 4.250 03/01/01 788,104
1,360,000 Illinois State Toll Highway Authority, Callable
8/06/97 @101......................................... Aaa/AAA 6.750 01/01/10 1,485,691
3,095,000 Jacksonville Florida Electric Authority Revenue
Second Installment, ETM.............................. Aaa/AAA 5.250 07/01/01 3,164,049
1,695,000 Kentucky State Turnpike Authority Toll Road Revenue,
ETM.................................................. Aaa/AAA 6.125 07/01/08 1,801,870
745,000 Manatee County Florida Water Revenue, ETM, Callable
8/06/97 @101......................................... Aaa/AAA 4.200 03/01/05 724,192
990,000 Minnesota State Utility.............................. NR/AAA 6.625 08/01/06 1,073,823
2,750,000 Monroe County New York, Callable 6/01/04 @102........ Aaa/AAA 6.000 06/01/11 2,919,400
815,000 New Jersey State Highway Authority--Garden State
Parkway General Revenue, ETM, Callable 8/07/97
@100................................................. NR/AAA 6.500 01/01/11 888,945
1,000,000 New Jersey State..................................... Aaa/AAA 7.250 04/15/01 1,058,270
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
66
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY MARKET
AMOUNT RATINGS RATE DATE VALUE
- ---------- ------------- ----------- --------- -------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
$2,180,000 New Jersey State Turnpike Authority Revenue Series C,
ETM, Callable 8/07/97 @100........................... Aaa/AAA 5.200% 01/01/08 $ 2,209,953
1,825,000 New Jersey State Turnpike Authority Revenue Series G,
ETM, Callable 8/07/97 @100........................... Aaa/AAA 5.750 01/01/09 1,896,960
5,214,000 New Jersey State Turnpike Authority Revenue, ETM,
Callable 8/07/97 @100................................ Aaa/NR 5.700 05/01/13 5,404,572
2,825,000 New York State Care Facilities Finance Agency (St
Luke's Hospital) Series B, FHA Insured+.............. Aaa/AAA 7.400 02/15/09 3,094,222
581,656 New York State Dormitory Authority, GNMA
Collateralized, Elizabeth A. Horton Memorial
Hospital............................................. NR/NR 7.000 08/25/06 662,516
990,000 New York State Dormitory Authority Revenue-- Cooper
Union, FSA Insured+.................................. Aaa/AAA 7.000 07/01/08 1,102,870
180,000 New York State Dormitory Authority Revenue Series
A.................................................... Aaa/NR 7.500 05/15/02 198,904
1,435,000 New York State Dormitory Authority Revenue State
University Educational Facilities Series A........... Baa1/BBB+ 7.000 05/15/03 1,533,183
2,475,000 New York State Dormitory Authority Revenue, State
University Educational Facilities Series A........... Aaa/NR 7.625 05/15/05 2,743,216
178,000 New York NY City Housing Authority, (Dyckman Houses
NYC--10 HUD), Callable 11/01/97 @101................. Aaa/NR 3.250 11/01/98 175,812
1,485,000 New York State Housing Finance Agency State
University Construction Series A..................... Aaa/AAA 8.000 05/01/11 1,835,787
3,075,000 New York State Power Authority Revenue & General
Purpose Series D, ETM, Callable 8/07/97 @100......... Aaa/AAA 5.875 01/01/10 3,241,757
890,000 New York State Power Authority Revenue & General
Purpose Series F, ETM, Callable 8/07/97 @100......... Aaa/AAA 5.500 01/01/10 917,047
1,370,000 New York State Power Authority Revenue & General
Purpose Series H, ETM................................ Aaa/AAA 7.500 01/01/10 1,569,020
1,980,000 New York State--Crossover Refunding.................. A2/A- 6.500 11/15/97 1,999,246
3,965,000 Oklahoma State Turnpike Authority Revenue Series A,
ETM, Callable 8/07/97 @100........................... Aaa/NR 4.700 01/01/06 3,968,013
300,000 Plano Texas Independent School District, ETM,
Callable 9/15/97 @100................................ Aa2/AAA 4.000 03/15/99 299,235
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
67
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY MARKET
AMOUNT RATINGS RATE DATE VALUE
- ---------- ------------- ----------- --------- -------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
$ 300,000 Plano Texas Independent School District, ETM,
Callable 9/15/97 @100................................ Aa2/AAA 4.000% 03/15/00 $ 297,783
985,000 Sacramento California Municipal Utility District
Revenue Series A, ETM, Callable 8/06/97 @100......... Aaa/AAA 5.500 02/01/11 999,942
990,000 Suffolk County NY Water Authority Series V, ETM,
Callable 6/01/02..................................... NR/AAA 7.000 06/01/06 1,061,290
740,000 Texas State Water Development Series A............... Aaa/AAA 7.100 08/01/97 742,178
-------------
57,278,782
-------------
SPECIAL TAX--5.2%
2,585,000 Chicago Illinois Sales Tax Revenue................... Aaa/AA2 6.000 01/01/07 2,794,902
510,000 Clark County Nevada--Las Vegas Convention & Visitors
Authority............................................ Aaa/AA3 5.400 07/01/03 530,645
500,000 Connecticut State Special Assessment Unemployment
Compensation Advance Fund Revenue Series A........... Aaa/AAA 4.500 05/15/99 503,285
250,000 Connecticut State Special Obligation Revenue Series
B.................................................... A1/AA- 4.300 10/01/03 244,753
1,000,000 Connecticut State Special Obligation Revenue Series
B.................................................... A1/AA- 6.100 09/01/08 1,093,190
350,000 Illinois State Sales Tax Revenue Series V............ Aa3/AAA 5.625 06/15/01 364,767
155,000 Kentucky Infrastructure Authority Series A,
Unrefunded Balance,.................................. NR/A 7.625 08/01/03 167,295
500,000 Metropolitan Pier & Exposition Authority (Mc Cormick
Project) Series A.................................... A2/A+ 5.600 06/15/01 519,545
310,000 Municipal Assistance Corp. for City of New York
Series D, AMBAC Insured+............................. Aaa/AA2 5.250 07/01/02 320,171
275,000 Municipal Assistance Corp. for City of New York
Series E............................................. Aa2/AA- 5.500 07/01/01 285,788
2,000,000 Municipal Assistance Corp. for City of New York
Series E............................................. Aa2/AA- 6.000 07/01/05 2,148,300
3,000,000 Municipal Assistance Corp. for City of New York
Series E............................................. Aa2/AA- 6.000 07/01/04 3,223,020
990,000 Municipal Assistance Corp. for City of New York
Series 68, Callable 7/01/99 @ 102.................... Aa2/AA 7.100 07/01/00 1,062,022
500,000 New Mexico State Severance Tax Series B, Callable
7/01/98 @100......................................... Aa2/AA 4.300 07/01/99 500,775
-------------
13,758,458
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
68
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY MARKET
AMOUNT RATINGS RATE DATE VALUE
- ---------- ------------- ----------- --------- -------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
STATE APPROPRIATION--9.9%
$ 100,000 Connecticut State Resource Recovery Authority Series
A.................................................... NR/AA- 5.750% 11/15/00 $ 104,186
1,980,000 Kentucky State Turnpike Authority Economic
Development Road Revenue (Revitalization Projects)... Aaa/A 5.300 07/01/04 2,050,191
2,000,000 Kentucky State Turnpike Authority Economic
Development Road Revenue (Revitalization Projects)... Aaa/A 5.500 07/01/08 2,099,380
1,000,000 Massachusetts Bay Transportation Authority Series
A.................................................... A1/A+ 5.400 03/01/08 1,029,360
1,610,000 New York State Dormitory Authority Revenue, Series A,
Unrefunded Balance, Callable 5/15/00 @102............ Baa1/BBB+ 7.500 05/15/02 1,740,522
50,000 New York State Dormitory Authority Revenue State
University Educational Facilities Series A,
Unrefunded Balance, Callable 5/15/99 @102............ Baa1/BBB+ 7.000 05/15/03 52,621
340,000 New York State Dormitory Authority Revenue State
University Educational Facilities Series A........... Baa1/BBB+ 5.300 05/15/03 346,504
2,475,000 New York State Dormitory Authority Revenue State
University Educational Facilities Series B........... Baa1/BBB+ 5.100 05/15/02 2,495,023
1,980,000 New York State Dormitory Authority Revenue State
University Educational Facilities Series B........... Baa1/BBB+ 5.250 05/15/10 1,923,966
1,980,000 New York State Local Government Assistance Corp.
Series A............................................. A3/A 6.700 04/01/00 2,097,216
3,805,000 New York State Local Government Assistance Corp.
Series A............................................. A3/A 6.000 04/01/06 4,094,066
300,000 New York State Local Government Assistance Corp.
Series C............................................. A3/A 4.300 04/01/99 300,333
1,980,000 New York State Local Government Assistance Corp.
Series C............................................. A3/A 6.000 04/01/12 2,114,145
1,500,000 New York State Urban Development Corp. Series A...... Baa1/BBB 5.450 01/01/07 1,521,105
2,005,000 New York State Thruway Authority Service Contract
Revenue, Callable 1/01/01 @102....................... Baa1/BBB 7.000 01/01/02 2,159,886
2,105,000 Port Seattle Washington Revenue Series A............. Aaa/AA3 6.000 10/01/07 2,280,852
-------------
26,409,356
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
69
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY MARKET
AMOUNT RATINGS RATE DATE VALUE
- ---------- ------------- ----------- --------- -------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
TRANSPORTATION--6.9%
$ 500,000 Delaware Transportation Authority System Revenue..... A1/AA 6.125% 07/01/03 $ 535,545
1,500,000 Kansas State Department of Transportation Highway
Revenue Series A..................................... Aa/AA 5.375 03/01/07 1,557,765
385,000 Kentucky State Turnpike Authority Toll Road Revenue
Series A, Unrefunded Balance......................... A/A 8.500 07/01/04 390,224
1,500,000 New York State Bridge Authority Revenue.............. Aa/AA- 5.000 01/01/07 1,513,560
2,000,000 New Jersey State Highway Authority Garden State
Parkway General Revenue.............................. A1/AA- 5.150 01/01/07 2,040,660
640,000 New Jersey State Turnpike Authority Revenue.......... NR/AAA 10.375 01/01/03 754,400
990,000 Pennsylvania State Turnpike Revenue Series O......... Aaa/AAA 5.350 12/01/02 1,029,551
3,630,000 Port Authority New York & New Jersey 52nd Series,
Callable 11/01/99 @100............................... A1/AA- 9.000 11/01/14 4,083,750
2,750,000 Triborough Bridge & Tunnel Authority Series V,....... Aa/A+ 6.500 01/01/01 2,940,190
1,000,000 Triborough Bridge & Tunnel Authority Series Q,
Callable 1/01/00 @101.50............................. Aa/A+ 6.750 01/01/03 1,068,820
2,130,000 Triborough Bridge & Tunnel Authority Series Q........ Aa/A+ 6.750 01/01/09 2,441,001
-------------
18,355,466
-------------
UTILITIES--12.6%
5,000,000 Austin Texas Utility System Revenue Series A......... Aaa/A2 5.000 05/15/07 5,014,550
1,915,000 Austin Texas Utility System Revenue Series A,
Unrefunded Balance, Callable 11/15/98 @102........... A2/A 7.250 11/15/03 2,030,417
1,095,000 Consumers Public Power District--Nuclear Facility
Revenue.............................................. A1/NR 5.100 01/01/03 1,095,120
990,000 Georgia Municipal Electrical Authority Power Revenue
Series Z............................................. A3/A 5.000 01/01/04 991,633
2,000,000 Grand River Authority Oklahoma Revenue, MBIA
Insured+............................................. Aaa/AAA 5.875 06/01/07 2,169,660
1,000,000 Grant County Washington Public Utility District No.
002.................................................. Aa3/A+ 5.600 01/01/05 1,042,870
1,000,000 Houston Texas Water Conveyance System Contract Series
B.................................................... Aaa/AAA 7.000 12/15/04 1,139,900
1,000,000 Intermountain Power Agency Utah Power Supply Revenue
Series A, Callable 7/01/03 @102...................... A1/A+ 5.200 07/01/06 1,015,690
1,650,000 Jacksonville Florida Electrical Authority Revenue
Series Two 1987A-1, Callable 10/01/97 @101.50........ Aa1/AA 7.500 10/01/02 1,689,122
2,230,000 Nebraska Public Power District Revenue Series A...... A1/A+ 4.500 01/01/00 2,239,433
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
70
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY MARKET
AMOUNT RATINGS RATE DATE VALUE
- ---------- ------------- ----------- --------- -------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
$ 150,000 New York State Environmental Facilities Corp.
Pollution Control Revenue............................ Aa2/A- 5.100% 06/15/00 $ 153,213
500,000 New York State Environmental Facilities Corp.
Pollution Control Revenue............................ Aa2/A- 5.200 06/15/01 514,010
2,085,000 New York State Environmental Facilities Corp.
Pollution Control Revenue............................ Aa2/A- 5.750 06/15/08 2,208,432
500,000 New York State Environmental Facilities Corp.
Pollution Control Revenue Series B................... Aa2/A- 6.000 06/15/01 527,275
1,000,000 New York State Environmental Facilities Corp.
Pollution Control Revenue Loan--C.................... Aaa/AAA 5.000 07/15/04 1,020,190
990,000 New York State Environmental Facilities Corp.
Pollution Control Revenue--Pooled Loan--B............ Aaa/AAA 4.950 05/15/07 994,861
1,790,000 New York State Power Authority Series V, Callable
1/01/98 @102......................................... Aa/AA- 7.600 01/01/03 1,857,859
990,000 New York State Power Authority Series V, Callable
1/01/98 @102......................................... Aa/AA- 7.875 01/01/07 1,028,927
1,410,000 New York State Power Authority Revenue & General
Purpose Series Y, Callable 1/01/01 @102.............. Aa/AA- 6.500 01/01/11 1,506,557
500,000 Sabine River Authorities Texas Water Supply
Facilities Revenue (Lake Fork Project)............... NR/AA 6.100 12/01/97 504,480
300,000 Salt River Project Arizona Agriculture Improvement &
Power District Electrical System Revenue Series B.... Aa/AA 4.300 01/01/99 300,822
500,000 San Antonio Texas Electrical & Gas Revenue........... Aa1/AA 4.000 02/01/00 493,945
990,000 San Antonio Texas Electrical & Gas Revenue
Series A............................................. Aa1/AA 7.000 02/01/99 1,031,283
1,135,000 South Carolina Public Service Authority Revenue
Series A, Callable 7/01/02 @102...................... Aa/A+ 6.200 07/01/06 1,209,762
1,000,000 South Carolina Public Service Authority Revenue
Series A, Callable 1/01/03 @102...................... Aaa/AAA 5.500 07/01/07 1,037,290
750,000 South Carolina State Public Authority Electrical
Revenue & Electrical System Expansion, Callable
8/07/97 @100......................................... Aa/AAA 4.100 07/01/06 711,458
-------------
33,528,759
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
71
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
PRINCIPAL /S&P INTEREST MATURITY MARKET
AMOUNT RATINGS RATE DATE VALUE
- ---------- ------------- ----------- --------- -------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
OTHER--0.9%
$1,770,000 New York NY City Industrial Development Agency Civic
Facilities Revenue (Rockerfeller Foundation Project),
Callable 7/01/03 @102................................ Aaa/AAA 5.250% 07/01/13 $ 1,715,980
200,000 New York State Dormitory Authority Revenue
Metropolitan Museum of Art Series B, Floating Rate
Notes, payable monthly, interest rate resets weekly,
next interest rate reset date 7/02/97................ Aa1/AA+ 4.000++ 07/01/23 200,000
100,000 New York State Local Government Assistance Corp.
Series A, payable monthly, interest rate resets
weekly, next interest rate reset date 7/02/97........ Aa3/AA 4.000++ 04/01/22 100,000
10,000 New York State Medical Care Facilities Financial
Agency Revenue Series B.............................. Aa2/AAA 7.000 02/15/98 10,196
250,000 Westchester County New York Industrial Development
Agency Series A...................................... Aaa/AAA 4.850 07/01/00 253,483
-------------
2,279,659
-------------
TOTAL MUNICIPAL BONDS
(Cost $253,625,272).................................. 264,265,941
-------------
TAX-EXEMPT MONEY MARKET FUND--1.1%
2,863,036 Dreyfus Municipal Money Market Fund
(Cost $2,863,036).................................... NR/NR 3.420(a) 2,863,036
-------------
TOTAL INVESTMENTS
(Cost $256,488,308) (b)--100.3%...................... 267,128,977
Other assets less liabilities--(0.3%)................ (897,023)
-------------
NET ASSETS--100%..................................... $ 266,231,954
-------------
</TABLE>
NR NOT RATED BY MOODY'S OR STANDARD & POOR'S ("S&P").
+ INSURED OR GUARANTEED BY THE INDICATED MUNICIPAL BOND INSURANCE CORPORATION.
++ REPRESENTS INTEREST RATE IN EFFECT JUNE 30, 1997 FOR FLOATING RATE NOTES.
(a) REPRESENTS ANNUALIZED YIELD AT JUNE 30, 1997.
(b) THE COST STATED ALSO REPRESENTS THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES. AT JUNE 30, 1997, NET UNREALIZED APPRECIATION WAS $10,640,669
BASED ON COST FOR FEDERAL INCOME TAX PURPOSES. THIS CONSISTED OF AGGREGATE
GROSS UNREALIZED APPRECIATION OF $11,027,951 AND AGGREGATE GROSS UNREALIZED
DEPRECIATION OF $387,282.
SEE NOTES TO FINANCIAL STATEMENTS.
72
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments at market value,
(Identified cost $256,488,308)...... $267,128,977
Cash.................................. 11,783
Receivables:
Investments sold.................... 2,842,923
Interest............................ 4,661,693
Capital stock sold.................. 1,962
------------
TOTAL ASSETS...................... 274,647,338
------------
LIABILITIES:
Payables:
Investments purchased............... 6,389,614
Capital stock repurchased........... 688,006
Dividends........................... 960,503
Services provided by The Bank of New
York and Administrator............ 334,527
Accrued expenses and other
liabilities......................... 42,734
------------
TOTAL LIABILITIES................... 8,415,384
------------
NET ASSETS:............................. $266,231,954
------------
SOURCES OF NET ASSETS:
Capital stock @ par................... $ 255,001
Capital surplus....................... 254,746,234
Accumulated net realized gain on
investments......................... 590,050
Net unrealized appreciation on
investments......................... 10,640,669
------------
NET ASSETS.............................. $266,231,954
------------
INSTITUTIONAL SHARES:
Net assets............................ $266,229,922
------------
Shares Outstanding.................... 26,339,719
------------
Net asset value, offering price and
repurchase price per share.......... $ 10.11
------------
INVESTOR SHARES:
Net assets............................ $ 2,032
------------
Shares Outstanding.................... 201
------------
Net asset value, offering price and
repurchase price per share.......... $ 10.11
------------
Institutional Shares authorized at $.001
par value............................. 200,000,000
Investor Shares authorized at $.001 par
value................................. 200,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE PERIOD APRIL 1, 1997* THROUGH
JUNE 30, 1997* (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest............................... $ 3,444,686
-----------
EXPENSES:
Advisory............................... 328,198
Administration......................... 131,280
Accounting services.................... 14,956
Custodian.............................. 12,366
Cash management........................ 6,183
Transfer agent......................... 19,945
Audit.................................. 3,383
Directors.............................. 1,746
Reports to shareholders................ 8,477
Registration and filings............... 6,482
Legal.................................. 2,019
Other.................................. 3,068
-----------
TOTAL EXPENSES....................... 538,103
-----------
NET INVESTMENT INCOME................ 2,906,583
-----------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS--
Net realized gain on investments....... 590,050
Increase in unrealized appreciation on
investments during the period........ 10,640,669
-----------
Net realized and unrealized gain on
investments.......................... 11,230,719
-----------
Net increase in net assets resulting
from operations...................... $14,137,302
-----------
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
73
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD APRIL 1, 1997* THROUGH JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
OPERATIONS:
Net investment income................................................................... $ 2,906,583
Net realized gain on investments........................................................ 590,050
Increase in unrealized appreciation on investments during the period.................... 10,640,669
-----------
Net increase in net assets resulting from operations.................................. 14,137,302
-----------
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income: Institutional Shares............................ (2,906,569)
Investor Shares................................. (14)
-----------
(2,906,583)
-----------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold: Institutional Shares................................ 260,650,850
Investor Shares..................................... 2,000
Proceeds from shares issued on reinvestment of dividends: Institutional Shares........ 8,789
Investor Shares............. 7
Cost of capital stock repurchased: Institutional Shares............................... (5,660,411)
Investor Shares.................................... -0-
-----------
Increase in net assets resulting from capital stock transactions.................... 255,001,235
-----------
INCREASE IN NET ASSETS............................................................ 266,231,954
NET ASSETS:
Beginning of period................................................................... -0-
-----------
End of period......................................................................... $266,231,954
-----------
CHANGE IN CAPITAL STOCK OUTSTANDING:
Shares sold: Institutional Shares..................................................... 26,900,800
Investor Shares.......................................................... 200
Shares issued on reinvestment of dividends: Institutional Shares...................... 873
Investor Shares........................... 1
Shares repurchased: Institutional Shares.............................................. (561,954)
Investor Shares................................................... -0-
-----------
Net increase........................................................................ 26,339,920
Shares outstanding, beginning of period............................................... -0-
-----------
Shares outstanding, end of period..................................................... 26,339,920
-----------
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
74
<PAGE>
BNY HAMILTON INTERMEDIATE TAX-EXEMPT FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL
SHARES INVESTOR SHARES
------------- ---------------
FOR THE
PERIOD APRIL FOR THE PERIOD
1, 1997* MAY 1, 1997*
THROUGH JUNE THROUGH JUNE
30,1997 30,1997
------------- ---------------
<S> <C> <C>
PER SHARE DATA:
Net asset value at beginning of period......................... $ 10.00 $ 10.01
------------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income.......................................... 0.11 0.07
Net realized and unrealized gain on investments................ 0.11 0.10
------------- ------
Total from investment operations............................. 0.22 0.17
------------- ------
DIVIDENDS
Dividends from net investment income........................... (0.11) (0.07)
------------- ------
Net asset value at end of period............................... $ 10.11 $ 10.11
------------- ------
TOTAL RETURN:.................................................. 2.22%** 1.89%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted).................... $ 266,230 $ 2
Ratio to average net assets of:
Expenses..................................................... 0.82%*** 1.11%***
Net investment income........................................ 4.43%*** 4.06%***
Portfolio turnover rate........................................ 11% 11%
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS FOR THE RESPECTIVE CLASS OF SHARES.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
75
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------- --------------
<C> <S> <C>
COMMERCIAL PAPER--37.1%
AGRIBUSINESS--1.2%
$ 15,000,000 Cargill Inc, 5.54%+,
8/25/97................... $ 14,873,042
--------------
ASSET BACKED SECURITIES--CREDIT
CARDS--1.2%
15,000,000 Riverwoods Funding
Corporation, 5.56%+,
7/30/97................... 14,932,817
--------------
BANK HOLDING COMPANIES--1.2%
15,000,000 J.P. Morgan & Company,
5.54%+, 9/22/97........... 14,808,408
--------------
BANK--FOREIGN INSTITUTIONS--2.8%
15,000,000 ABN Amro, 5.29%+,
7/28/97................... 14,940,488
20,000,000 Credit Suisse, 5.80%+,
10/20/97.................. 19,642,333
--------------
34,582,821
--------------
BROKERAGE SERVICES--0.8%
10,000,000 Merrill Lynch & Co., Inc,
5.56%+, 7/14/97........... 9,979,922
--------------
CHEMICALS--BASIC--2.0%
10,000,000 du Pont (E.I) de Nemours &
Company, 5.54%+,
9/03/97................... 9,901,511
15,000,000 du Pont (E.I) de Nemours &
Company, 5.61%+,
11/04/97.................. 14,705,475
--------------
24,606,986
--------------
CONGLOMERATES--1.6%
20,000,000 Allied--Signal Inc.,
5.53%+, 7/03/97........... 19,993,856
--------------
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------- --------------
<C> <S> <C>
COMMERCIAL PAPER (CONTINUED)
ELECTRICAL & ELECTRONIC EQUIPMENT-- 3.7%
$ 25,000,000 General Electric Company,
5.57%+, 7/01/97........... $ 25,000,000
20,000,000 International Business
Machines, 5.54%+,
8/05/97................... 19,892,278
--------------
44,892,278
--------------
FINANCE COMPANIES--
NON-CAPTIVE & INDEPENDENT--3.6%
25,000,000 Associates Corporation Of
North America, 5.53%+,
7/23/97................... 24,915,514
10,000,000 Associates Corporation Of
North America, 5.54%+,
10/01/97.................. 9,858,422
10,000,000 General Electric Capital
Corporation, 5.65%+,
1/12/98................... 9,693,958
--------------
44,467,894
--------------
FOOD PROCESSING--3.7%
20,000,000 Archer Daniels Midland
Company, 5.55%+,
7/17/97................... 19,950,667
25,000,000 Campbell Soup Corporation,
5.50%+, 7/07/97........... 24,977,083
--------------
44,927,750
--------------
FOREIGN GOVERNMENT & RELATED
ISSUES--AUSTRALIA--0.8%
10,000,000 Wool International,
5.61%+, 11/14/97.......... 9,788,067
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
76
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------- --------------
<C> <S> <C>
COMMERCIAL PAPER (CONTINUED)
FOREIGN RETAIL SPECIALTY--1.6%
$ 10,000,000 St. Michael Finance LTD,
5.56%+, 8/19/97........... $ 9,924,322
10,000,000 St. Michael Finance LTD,
5.58%+, 9/22/97........... 9,871,350
--------------
19,795,672
--------------
INSURANCE--NON HEALTH--2.0%
25,000,000 Prudential Funding,
5.53%+, 7/10/97........... 24,965,438
--------------
LEASING (WHOLESALE & RETAIL)--AUTOS,
TRUCKS & RV'S--2.4%
15,000,000 Ford Motor Credit Company,
5.54%+, 8/08/97........... 14,912,283
15,000,000 Ford Motor Credit Company,
5.54%+, 8/14/97........... 14,898,433
--------------
29,810,716
--------------
NON-BANKING HOLDING COMPANIES-- 2.0%
10,000,000 USAA Capital Corporation,
5.63%+, 10/28/97.......... 9,813,897
15,000,000 USAA Capital Corporation,
5.56%+, 8/18/97........... 14,888,800
--------------
24,702,697
--------------
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------- --------------
<C> <S> <C>
COMMERCIAL PAPER (CONTINUED)
OIL--INTEGRATED--2.8%
$ 34,000,000 Amoco Company, 5.55%+,
8/01/97................... $ 33,837,508
--------------
PHARMACEUTICAL, HEALTH CARE, COSMETICS &
SOAP--0.8%
10,000,000 Schering Corporation,
5.58%+, 9/16/97........... 9,880,650
--------------
TELECOMMUNICATIONS--2.9%
15,000,000 BellSouth
Telecommunications Inc.,
5.52%+, 7/14/97........... 14,970,100
10,000,000 BellSouth
Telecommunications Inc.,
5.52%+, 7/09/97........... 9,987,733
10,000,000 Southwestern Bell
Telephone Company, 5.53%+,
8/28/97................... 9,910,906
--------------
34,868,739
--------------
TOTAL COMMERCIAL PAPER
(Cost $455,715,261)....... 455,715,261
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
77
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------- --------------
<C> <S> <C>
UNITED STATES GOVERNMENT AGENCIES &
OBLIGATIONS--13.4%
UNITED STATES GOVERNMENT AGENCY
SECURITIES--6.1%
$ 12,000,000 Federal Farm Credit Bank,
5.85%, 10/01/97........... $ 12,001,745
Federal Home Loan Bank,
5,300,000 5.61%, 12/18/97........... 5,299,753
10,000,000 5.29%+, 7/18/97........... 9,975,019
5,000,000 5.675%, 2/12/98........... 5,000,415
5,000,000 5.80%, 6/12/98............ 4,998,874
5,000,000 5.80%, 6/12/98............ 4,998,473
Federal National Mortgage
Association,
6,000,000 5.32%+, 10/02/97.......... 5,917,540
8,000,000 5.50%, 2/18/98............ 7,994,203
8,000,000 5.51%, 2/24/98............ 7,996,922
Student Loan Marketing
Association,
10,000,000 5.615%, 10/29/97.......... 9,997,736
--------------
74,180,680
--------------
UNITED STATES TREASURY NOTES--7.3%
8,000,000 5.625%, 8/31/97........... 7,996,280
16,000,000 5.625%, 1/31/98........... 15,990,335
25,000,000 5.125%, 2/28/98........... 24,897,082
26,000,000 5.00%, 1/31/98............ 25,894,403
15,000,000 5.875%, 4/30/98........... 15,006,171
--------------
89,784,271
--------------
TOTAL UNITED STATES
GOVERNMENT AGENCIES &
OBLIGATIONS
(Cost $163,964,951)....... 163,964,951
--------------
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------- --------------
<C> <S> <C>
TIME DEPOSITS--3.7%
$ 20,000,000 Harris Trust Bank Of
Chicago, 6.125%,
7/01/97................... $ 20,000,000
25,000,000 Suntrust Bank Of Atlanta,
7.00%, 7/01/97............ 25,000,000
--------------
TOTAL TIME DEPOSITS
(Cost $45,000,000)........ 45,000,000
--------------
FLOATING RATE NOTES--1.2%
BROKERAGE SERVICES--1.2%
15,000,000 Bear Stearns Companies,
Inc; 5.72%+, payable
quarterly, interest rate
resets monthly, next
interest rate reset date
7/03/97, final maturity
10/03/97
(Cost $15,000,000)........ 15,000,000
--------------
FIXED RATE DEBT
OBLIGATIONS--1.8%
BANK HOLDING COMPANIES--1.8%
12,000,000 FCC National Bank, 5.70%,
10/30/97.................. 12,003,650
10,000,000 Northern Trust Company,
5.65%, 10/09/97........... 9,997,231
--------------
TOTAL FIXED RATE DEBT
OBLIGATIONS
(Cost $22,000,881)........ 22,000,881
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
78
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------- --------------
<C> <S> <C>
CERTIFICATE OF DEPOSIT--2.2%
BANK HOLDING COMPANIES--2.2%
$ 20,000,000 Regions Bank, 5.73%,
7/28/97................... $ 20,000,000
7,000,000 Westpac Banking
Corporation, 5.83%
1/15/98................... 7,003,455
--------------
TOTAL CERTIFICATE OF
DEPOSIT
(Cost $27,003,455)........ 27,003,455
--------------
CORPORATE NOTE--0.8%
10,000,000 Heinz (HJ) Company, 5.50%,
09/15/97 (Cost
$9,995,800)............... 9,995,800
--------------
BANK NOTE--0.8%
10,000,000 Wachovia Bank of North
Carolina, 6.15%, 5/06/98
(Cost $9,991,403)......... 9,991,403
--------------
CORPORATE BOND--0.7%
8,300,000 Wisconsin Electric Power,
5.875%, 10/01/97
(Cost $8,304,503)......... 8,304,503
--------------
REPURCHASE AGREEMENTS--38.4%
REPURCHASE AGREEMENTS WITH BARCLAYS
DEZOETE WEDD--8.2%
100,000,000 6.10%, due 7/01/97,
repurchase price
$100,016,944 (Collateral--
Federal Farm Credit Bank
Bonds, 0.00%-11.90%,
8/01/97-5/01/98; Federal
Home Loan Bank Notes/
Bonds, 0.00%-6.23%,
7/10/97-10/25/05; Federal
Home Loan Mortgage
Corporation Notes/Bonds,
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------- --------------
<C> <S> <C>
REPURCHASE AGREEMENTS (CONTINUED)
0.00%-7.82%,
7/03/97-4/10/07; Federal
National Mortgage
Association Notes,
0.00%-8.25%,
7/02/97-12/10/03;
International Bank for
Reconstruction and
Development Debt, 5.25%,
9/16/03; Student Loan
Mortgage Association Bond;
5.82%, 2/06/01; aggregated
market plus accrued
interest $102,003,455)
(Cost $100,000,000)....... $ 100,000,000
--------------
REPURCHASE AGREEMENTS WITH DEAN WITTER
REYNOLDS--8.2%
$ 100,000,000 6.10%, due 7/01/97
repurchase price
$100,016,944 (Collateral--
Federal Home Loan Mortgage
Corporation
Mortgage-backed
securities, 6.22%-9.50%,
11/01/97-3/01/25; Federal
National Mortgage
Association Bonds/
Mortgage-backed
securities, 5.00%-7.50%,
5/01/11-7/25/23;
aggregated market value
plus accrued interest
$103,000,000)
(Cost $100,000,000)....... 100,000,000
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
79
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------- --------------
<C> <S> <C>
REPURCHASE AGREEMENTS (CONTINUED)
REPURCHASE AGREEMENTS WITH DEUSTCHE BANK
AG--8.2%
$ 100,000,000 5.98%, due 7/01/97
repurchase price
$100,016,611 (Collateral--
Federal Home Loan Mortgage
Corporation Bond, 6.50%,
12/15/23; Federal National
Mortgage Association Bond,
6.50%, 3/25/24; Government
National Mortgage
Association Mortgage-
backed, 6.50%-9.50%,
1/01/00-8/15/25;
aggregated market value
plus accrued interest
$103,002,326) (Cost
$100,000,000)............. $ 100,000,000
--------------
REPURCHASE AGREEMENTS WITH GOLDMAN SACHS &
CO.--2.4%
30,491,000 5.85%, due 7/01/97
repurchase price
$30,495,955 (Collateral--
United States Treasury
Bond, 6.25%, 8/15/23;
aggregated market value
plus accrued interest
$31,100,894) (Cost
$30,491,000).............. 30,491,000
--------------
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------- --------------
<C> <S> <C>
REPURCHASE AGREEMENTS (CONTINUED)
REPURCHASE AGREEMENTS WITH GOLDMAN SACHS &
CO.--3.7%
$ 45,000,000 6.00%, due 7/01/97
repurchase price
$45,007,500 (Collateral--
African Development Bank
Debt, 9.30%, 7/01/00;
Asian Development Bank
Debt, 8.50%, 5/02/01;
Federal Farm Credit Bank
Notes, 5.42%-6.86%,
8/04/98-7/23/99; Federal
Home Loan Bank Notes,
5.22%-8.63%,
3/05/98-4/03/06;
International Bank of
Reconstruction and
Development Debt,
7.625%-8.75%,
4/01/98-1/19/23; Student
National Mortgage
Association Notes,
6.61%-6.76%,
11/29/99-5/19/00;
aggregated market value
plus accrued interest
$45,904,295) (Cost
$45,000,000).............. $ 45,000,000
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
80
<PAGE>
BNY HAMILTON MONEY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------- --------------
<C> <S> <C>
REPURCHASE AGREEMENTS WITH SMITH BARNEY
INC.--7.7%
$ 95,000,000 6.02%, due 7/01/97
repurchase price
$95,015,886 (Collateral--
Asian Development Bank
Debt, 9.125%, 6/01/00;
Federal Home Loan Mortgage
Corporation Bonds,
6.15%-10.00%,
5/15/06-11/15/25; Federal
National Mortgage
Association Bonds,
5.25%-7.069%,
7/25/06-12/25/22;
International Bank for
Reconstruction and
Development Debts,
0.00-8.79%,
2/15/98-2/15/09;
aggregated market value
plus accrued interest
$97,814,738) (Cost
$95,000,000).............. $ 95,000,000
--------------
<CAPTION>
MARKET
VALUE
--------------
<C> <S> <C>
TOTAL REPURCHASE
AGREEMENTS--
(Cost $470,491,000)....... $ 470,491,000
--------------
TOTAL INVESTMENTS--
(Cost $1,227,467,254)
(a)--100.1%............... 1,227,467,254
Other assets less
liabilities--(0.1%)....... (1,396,720)
--------------
NET ASSETS--100%.......... $1,226,070,534
--------------
</TABLE>
(a) THE COST STATED ALSO REPRESENTS THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES.
+ REPRESENTS YIELD AT TIME OF PURCHASE FOR COMMERCIAL PAPER, DISCOUNTED RATE AT
TIME OF PURCHASE FOR UNITED STATES GOVERNMENT AGENCIES & OBLIGATIONS, AND
INTEREST RATE IN EFFECT AT JUNE 30, 1997 FOR FLOATING RATE NOTES.
SEE NOTES TO FINANCIAL STATEMENTS.
81
<PAGE>
BNY HAMILTON MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments at market value,
including repurchase agreements of
$470,491,000 (Identified cost
$1,227,467,254).................... $1,227,467,254
Cash................................. 181,388
Receivables:
Investments sold................... 533,350,000
Interest........................... 4,593,411
Capital stock sold................. 21,588,024
Deferred organization costs and other
assets............................. 98,139
--------------
TOTAL ASSETS..................... 1,787,278,216
--------------
LIABILITIES:
Payables:
Investments purchased.............. 515,491,000
Capital stock repurchased.......... 39,566,021
Dividends.......................... 5,358,057
Services provided by The Bank of
New York and Administrator....... 708,666
Accrued expenses and other
liabilities........................ 83,938
--------------
TOTAL LIABILITIES.................. 561,207,682
--------------
NET ASSETS:............................ $1,226,070,534
--------------
SOURCES OF NET ASSETS:
Capital stock @ par.................. $ 1,226,052
Capital surplus...................... 1,224,825,876
Accumulated net realized gain on
investments........................ 18,606
--------------
NET ASSETS............................. $1,226,070,534
--------------
HAMILTON SHARES:
Net assets........................... $ 686,747,480
--------------
Shares Outstanding................... 686,736,454
--------------
Net asset value, offering price and
repurchase price per share......... $ 1.00
--------------
HAMILTON PREMIER SHARES:
Net assets........................... $ 522,264,854
--------------
Shares Outstanding................... 522,257,507
--------------
Net asset value, offering price and
repurchase price per share......... $ 1.00
--------------
HAMILTON CLASSIC SHARES:
Net assets........................... $ 17,058,200
--------------
Shares Outstanding................... 17,057,967
--------------
Net asset value, offering price and
repurchase price per share......... $ 1.00
--------------
Hamilton Shares authorized at $.001 par
value................................ 3,000,000,000
Hamilton Premier Shares authorized at
$.001 par value...................... 3,000,000,000
Hamilton Classic Shares authorized at
$.001 par value...................... 3,000,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest............................... $34,066,262
-----------
EXPENSES:
Advisory............................... 618,648
Administration......................... 618,648
12b-1 fee--Hamilton Classic Shares..... 19,333
Servicing fee: Hamilton Premier
Shares.................. 600,098
Hamilton Classic Shares.... 19,332
Accounting services.................... 29,762
Custodian.............................. 64,620
Cash management ....................... 24,857
Transfer agent: Hamilton Shares........ 15,974
Hamilton Premier Shares... 24,115
Hamilton Classic Shares... 8,846
Audit ................................. 29,729
Insurance.............................. 16,107
Directors.............................. 6,285
Reports to shareholders ............... 12,778
Registration and filings............... 48,822
Legal.................................. 21,567
Other.................................. 47,411
-----------
TOTAL EXPENSES....................... 2,226,932
-----------
NET INVESTMENT INCOME................ 31,839,330
Net realized gain on investments....... 18,606
-----------
Net increase in net assets resulting
from operations...................... $31,857,936
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
82
<PAGE>
BNY HAMILTON MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, 1996
------------------ -------------------
<S> <C> <C>
OPERATIONS:
Net investment income.................................................. $ 31,839,330 $ 57,040,613
Net realized gain on investments....................................... 18,606 -0-
------------------ -------------------
Net increase in net assets resulting from operations................. 31,857,936 57,040,613
------------------ -------------------
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income: Hamilton Shares.................. (19,492,471) (35,659,908)
Hamilton Premier Shares.......... (11,991,176) (20,772,078)
Hamilton Classic Shares.......... (355,683) (608,627)
------------------ -------------------
(31,839,330) (57,040,613)
------------------ -------------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold: Hamilton Shares...................... 1,567,863,949 2,408,255,035
Hamilton Premier Shares.............. 2,360,206,377 4,388,644,318
Hamilton Classic Shares.............. 14,794,019 28,058,002
Proceeds from shares issued on
reinvestment of dividends: Hamilton Shares........................... 1,776,025 4,380,461
Hamilton Premier Shares................... 5,599,715 11,294,784
Hamilton Classic Shares................... 282,259 599,324
Cost of capital stock repurchased: Hamilton Shares..................... (1,492,327,554) (2,407,263,969)
Hamilton Premier Shares ............ (2,307,307,035) (4,276,343,748)
Hamilton Classic Shares............. (11,496,705) (18,277,323)
------------------ -------------------
Increase in net assets resulting from capital stock transactions..... 139,391,050 139,346,884
------------------ -------------------
INCREASE IN NET ASSETS............................................. 139,409,656 139,346,884
NET ASSETS:
Beginning of period.................................................... 1,086,660,878 947,313,994
------------------ -------------------
End of period.......................................................... $ 1,226,070,534 $ 1,086,660,878
------------------ -------------------
CHANGE IN CAPITAL STOCK OUTSTANDING:
Shares sold: Hamilton Shares........................................... 1,567,863,949 2,408,255,035
Hamilton Premier Shares................................... 2,360,206,377 4,388,644,318
Hamilton Classic Shares................................... 14,794,019 28,058,002
Shares issued on reinvestment of dividends: Hamilton Shares............ 1,776,025 4,380,461
Hamilton Premier Shares.... 5,599,715 11,294,784
Hamilton Classic Shares ... 282,259 599,324
Shares repurchased: Hamilton Shares.................................... (1,492,327,554) (2,407,263,969)
Hamilton Premier Shares............................ (2,307,307,035) (4,276,343,748)
Hamilton Classic Shares............................ (11,496,705) (18,277,323)
------------------ -------------------
Net increase......................................................... 139,391,050 139,346,884
Shares outstanding, beginning of period................................ 1,086,660,878 947,313,994
------------------ -------------------
Shares outstanding, end of period...................................... 1,226,051,928 1,086,660,878
------------------ -------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
83
<PAGE>
BNY HAMILTON MONEY FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HAMILTON SHARES
-----------------------------------------------------------------
FOR THE
PERIOD
SIX AUGUST 7,
MONTHS 1992*
ENDED YEAR ENDED DECEMBER 31, THROUGH
JUNE 30, -------------------------------------- DECEMBER 31,
1997 1996 1995 1994 1993 1992
-------- -------- -------- -------- -------- ------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- ------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income....................................... 0.026 0.052 0.057 0.040 0.030 0.012
-------- -------- -------- -------- -------- ------------
DIVIDENDS
Dividends from net investment income........................ (0.026) (0.052) (0.057) (0.040) (0.030) (0.012)
-------- -------- -------- -------- -------- ------------
Net asset value at end of period............................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- ------------
TOTAL RETURN:............................................... 2.63%** 5.30% 5.84% 4.02% 3.03% 1.26%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)................. $686,747 $609,424 $604,053 $235,220 $307,395 $135,852
Ratio to average net assets of:
Expenses, net of waiver from The Bank of New York......... 0.25%*** 0.27% 0.26% 0.30% 0.27% 0.20%***
Expenses, prior to waiver from The Bank of New York....... 0.25%*** 0.27% 0.26% 0.32% 0.32% 0.49%***
Net investment income, net of waiver from The Bank of New
York.................................................... 5.25%*** 5.17% 5.67% 3.92% 2.97% 3.11%***
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
84
<PAGE>
BNY HAMILTON MONEY FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HAMILTON PREMIER SHARES
---------------------------------------------
FOR THE
PERIOD
SIX AUGUST 15,
MONTHS YEAR ENDED 1994*
ENDED DECEMBER 31, THROUGH
JUNE 30, ------------------ DECEMBER 31,
1997 1996 1995 1994
-------- -------- -------- ------------
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of period................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- ------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................................................. 0.025 0.049 0.054 0.017
-------- -------- -------- ------------
DIVIDENDS
Dividends from net investment income.................................. (0.025) (0.049) (0.054) (0.017)
-------- -------- -------- ------------
Net asset value at end of period...................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- ------------
TOTAL RETURN:......................................................... 2.50%** 5.03% 5.54% 1.69%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)........................... $522,265 $463,759 $340,163 $107,799
Ratio to average net assets of:
Expenses............................................................ 0.51%*** 0.53% 0.54% 0.61%***
Net investment income............................................... 5.00%*** 4.91% 5.40% 4.40%***
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
85
<PAGE>
BNY HAMILTON MONEY FUND
FINANCIAL HIGHLIGHTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HAMILTON CLASSIC SHARES
-----------------------------------------
FOR THE
PERIOD
SIX DECEMBER 4,
MONTHS 1995*
ENDED YEAR ENDED THROUGH
JUNE 30, DECEMBER 31, DECEMBER 31,
1997 1996 1995
-------- ------------ ------------
<S> <C> <C> <C>
PER SHARE DATA:
Net asset value at beginning of period.......................................... $ 1.00 $ 1.00 $ 1.00
-------- ------------ ------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income........................................................... 0.023 0.046 0.004
-------- ------------ ------------
DIVIDENDS
Dividends from net investment income............................................ (0.023) (0.046) (0.004)
-------- ------------ ------------
Net asset value at end of period................................................ $ 1.00 $ 1.00 $ 1.00
-------- ------------ ------------
TOTAL RETURN:................................................................... 2.30%** 4.73% 0.40%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)..................................... $17,058 $13,478 $ 3,098
Ratio to average net assets of:
Expenses...................................................................... 0.91%*** 0.82% 0.76%***
Net investment income......................................................... 4.60%*** 4.67% 5.18%***
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
86
<PAGE>
BNY HAMILTON TREASURY MONEY FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ ------------
<C> <S> <C>
UNITED STATES GOVERNMENT OBLIGATION--31.5%
$ 20,000,000 United States Treasury Bill,
4.85%+, 7/17/97
(Cost $19,956,889)............ $ 19,956,889
------------
REPURCHASE AGREEMENTS--37.1%
REPURCHASE AGREEMENTS WITH BARCLAYS DEZOETE
WEDD--7.9%
5,000,000 5.90%, due 7/01/97, repurchase
price $5,000,819
(Collateral--United States
Treasury Bond, 8.75%, 5/15/17;
aggregate market value plus
accrued interest $5,100,102)
(Cost $5,000,000)............. 5,000,000
------------
REPURCHASE AGREEMENTS WITH DEUTSCHE BANK
AG--7.9%
5,000,000 5.95%, due 7/01/97 repurchase
price $5,000,826
(Collateral-United States
Treasury Strips,
5/15/07-8/15/24; United States
Treasury Note, 6.625%,
5/15/07; aggregate market
value plus accrued interest
$5,100,046)
(Cost $5,000,000)............. 5,000,000
------------
REPURCHASE AGREEMENTS WITH GOLDMAN SACHS &
CO.--11.7%
7,440,000 5.85%, due 7/01/97 repurchase
price $7,441,209
(Collateral--United States
Treasury Note, 6.25%, 5/31/99;
aggregate market value plus
accrued interest $7,589,558)
(Cost $7,440,000)............. 7,440,000
------------
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- ------------ ------------
<C> <S> <C>
REPURCHASE AGREEMENTS (CONTINUED)
REPURCHASE AGREEMENTS WITH MORGAN STANLEY &
CO.--4.8%
$ 3,000,000 5.75%, due 7/01/97 repurchase
price $3,000,479
(Collateral--United States
Treasury Bill, zero coupon,
9/04/97; aggregate market
value plus accrued interest
$3,081,136)
(Cost $3,000,000)............. $ 3,000,000
------------
REPURCHASE AGREEMENTS WITH SMITH BARNEY
INC.--4.8%
3,000,000 5.95%, due 7/01/97 repurchase
price $3,000,496
(Collateral--Federal National
Mortgage Association Bond,
6.50%, 7/25/18; aggregate
market value plus accrued
interest $3,090,000)
(Cost $3,000,000)............. 3,000,000
------------
TOTAL REPURCHASE AGREEMENTS--
(Cost $23,440,000)............ 23,440,000
------------
TOTAL INVESTMENTS--
(Cost
$43,396,889)(a)--68.6%........ 43,396,889
Other assets less
liabilities--31.4%............ 19,889,157
------------
NET ASSETS--100%.............. $ 63,286,046
------------
</TABLE>
(a) THE COST STATED ALSO REPRESENTS THE AGGREGATE COST FOR FEDERAL INCOME TAX
PURPOSES.
+ REPRESENTS DISCOUNTED RATE AT TIME OF PURCHASE FOR UNITED STATES GOVERNMENT
OBLIGATION.
SEE NOTES TO FINANCIAL STATEMENTS.
87
<PAGE>
BNY HAMILTON TREASURY MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments at market value, including
repurchase agreements of $23,440,000
(Identified cost $43,396,889)....... $ 43,396,889
Cash.................................. 487
Receivables:
Investments sold.................... 83,500,700
Interest............................ 32,356
Receivable due from The Bank of New
York and Administrator............ 25,050
Capital stock sold.................. 2,328,803
-------------
TOTAL ASSETS........................ 129,284,285
-------------
LIABILITIES:
Payables:
Investments purchased............... 63,367,306
Capital stock repurchased........... 2,475,494
Dividends........................... 115,104
Services provided by The Bank of New
York and Administrator............ 31,520
Accrued expenses and other
liabilities......................... 8,815
-------------
TOTAL LIABILITIES................... 65,998,239
-------------
NET ASSETS:............................. $ 63,286,046
-------------
SOURCES OF NET ASSETS:
Capital stock @ par................... $ 63,286
Capital surplus....................... 63,222,860
Accumulated net realized loss on
investments......................... (100)
-------------
NET ASSETS.............................. $ 63,286,046
-------------
HAMILTON SHARES:
Net assets............................ $ 7,154,647
-------------
Shares Outstanding.................... 7,154,658
-------------
Net asset value, offering price and
repurchase price per share.......... $ 1.00
-------------
HAMILTON PREMIER SHARES:
Net assets............................ $ 56,131,399
-------------
Shares Outstanding.................... 56,131,488
-------------
Net asset value, offering price and
repurchase price per share.......... $ 1.00
-------------
Hamilton Shares authorized at $.001 par
value................................. 2,000,000,000
Hamilton Premier Shares authorized at
$.001 par value....................... 2,000,000,000
</TABLE>
STATEMENT OF OPERATIONS
FOR THE PERIOD APRIL 1, 1997* THROUGH JUNE 30, 1997 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................. $ 230,958
EXPENSES:
Advisory.................................. 4,270
Administration............................ 4,270
Servicing fee: Hamilton Premier Shares.... 6,821
Accounting services....................... 14,956
Custodian................................. 4,438
Cash management........................... 1,496
Transfer agent: Hamilton Shares........... 1,249
Hamilton Premier Shares...... 1,581
Audit..................................... 1,364
Directors................................. 1,746
Reports to shareholders................... 1,321
Registration and filings.................. 1,870
Legal..................................... 897
Other..................................... 675
---------
TOTAL EXPENSES.......................... 46,954
Fees waived/reimbursed by the Bank of New
York.................................... (29,320)
---------
NET EXPENSES............................ 17,634
---------
NET INVESTMENT INCOME................... 213,324
Net realized loss on investments.......... (100)
---------
Net increase in net assets resulting from
operations.............................. $ 213,224
---------
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
88
<PAGE>
BNY HAMILTON TREASURY MONEY FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD APRIL 1, 1997* THROUGH JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
OPERATIONS:
Net investment income.................................................................. $ 213,324
Net realized loss on investments....................................................... (100)
-----------
Net increase in net assets resulting from operations................................. 213,224
-----------
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income: Hamilton Shares.................................. (79,392)
Hamilton Premier Shares.......................... (133,932)
-----------
(213,324)
-----------
CAPITAL STOCK TRANSACTIONS:
Proceeds from capital stock sold: Hamilton Shares...................................... 7,983,034
Hamilton Premier Shares.............................. 64,606,613
Proceeds from shares issued on reinvestment of dividends: Hamilton Shares.............. 42,655
Hamilton Premier Shares...... 40,555
Cost of capital stock repurchased: Hamilton Shares..................................... (871,032)
Hamilton Premier Shares............................. (8,515,679)
-----------
Increase in net assets resulting from capital stock transactions....................... 63,286,146
-----------
INCREASE IN NET ASSETS............................................................... 63,286,046
NET ASSETS:
Beginning of period.................................................................... -0-
-----------
End of period.......................................................................... $63,286,046
-----------
CHANGE IN CAPITAL STOCK OUTSTANDING:.....................................................
Shares sold: Hamilton Shares........................................................... 7,983,034
Hamilton Premier Shares................................................... 64,606,613
Shares issued on reinvestment of dividends: Hamilton Shares............................ 42,655
Hamilton Premier Shares.................... 40,555
Shares repurchased: Hamilton Shares.................................................... (871,032)
Hamilton Premier Shares............................................ (8,515,679)
-----------
Net increase......................................................................... 63,286,146
Shares outstanding, beginning of period................................................ -0-
-----------
Shares outstanding, end of period...................................................... 63,286,146
-----------
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
89
<PAGE>
BNY HAMILTON TREASURY MONEY FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HAMILTON
PREMIER
HAMILTON SHARES SHARES
--------------- -------------
FOR THE
PERIOD
FOR THE PERIOD APRIL 1,
APRIL 1, 1997* 1997*
THROUGH THROUGH
JUNE 30, 1997 JUNE 30,1997
--------------- -------------
<S> <C> <C>
PER SHARE DATA:
Net asset value at beginning of period......................... $ 1.00 $ 1.00
------ -------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income.......................................... 0.13 0.12
------ -------------
DIVIDENDS
Dividends from net investment income........................... (0.13) (0.12)
------ -------------
Net asset value at end of period............................... $ 1.00 $ 1.00
------ -------------
TOTAL RETURN:.................................................. 1.29%** 1.22%**
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted).................... $ 7,155 $ 56,131
Ratio to average net assets of:
Expenses, net of waiver from The Bank of New York............ 0.25%*** 0.50%***
Expenses, prior to waiver from The Bank of New York.......... 1.10%*** 1.10%***
Net investment income, net of waiver from The Bank of New
York....................................................... 5.15%*** 4.93%***
</TABLE>
* COMMENCEMENT OF INVESTMENT OPERATIONS FOR THE RESPECTIVE CLASS OF SHARES.
** NOT ANNUALIZED.
*** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
90
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION AND BUSINESS
BNY Hamilton Funds, Inc. (the "Company") was organized as a Maryland
Corporation on May 1, 1992 and is registered under the Investment Company Act of
1940 as an open-end management investment company. The Company currently
consists of ten series: BNY Hamilton Equity Income Fund, BNY Hamilton Large Cap
Growth Fund, BNY Hamilton Small Cap Growth Fund, BNY Hamilton International
Equity Fund, BNY Hamilton Intermediate Government Fund, BNY Hamilton
Intermediate Investment Grade Fund, BNY Hamilton Intermediate New York
Tax-Exempt Fund, BNY Hamilton Intermediate Tax-Exempt Fund, BNY Hamilton Money
Fund, and BNY Hamilton Treasury Money Fund (individually, a "Fund" and
collectively, the "Funds"). All the Funds (except BNY Hamilton Money Fund and
BNY Hamilton Treasury Money Fund) consist of two classes of shares:
Institutional Shares and Investor Shares. BNY Hamilton Money Fund consists of
three classes of shares: Hamilton Shares, Hamilton Premier Shares, and Hamilton
Classic Shares. BNY Hamilton Treasury Money Fund consists of two classes of
shares: Hamilton Shares and Hamilton Premier Shares.
On April 1, 1997, BNY Hamilton Equity Income Fund, BNY Hamilton Large Cap
Growth Fund, BNY Hamilton Small Cap Growth Fund, BNY Hamilton Intermediate
Investment Grade Fund and BNY Hamilton Intermediate Tax-Exempt Fund commenced
operations of their respective Institutional Class of Shares as the result of a
conversion of common trust funds managed by The Bank of New York. The following
chart summarizes pertinent data related to each Fund on the date of the
conversion:
<TABLE>
<CAPTION>
BNY HAMILTON BNY HAMILTON
EQUITY LARGE CAP
INCOME GROWTH
FUND FUND
-------------- --------------
<S> <C> <C>
Shares issued............ 18,189,661 28,808,732
Net Assets............... $258,475,076 $288,087,324
Net Asset Value per
share................... $ 14.21 $ 10.00
Unrealized appreciation
of converted Funds...... $ 49,514,077 $101,357,786
<CAPTION>
BNY HAMILTON
BNY HAMILTON INTERMEDIATE
SMALL CAP INVESTMENT
GROWTH GRADE
FUND FUND
-------------- --------------
<S> <C> <C>
Shares issued............ 8,453,791 34,378,123
Net Assets............... $ 84,537,911 $343,781,232
Net Asset Value per
share................... $ 10.00 $ 10.00
Unrealized appreciation
(depreciation) of
converted Funds......... $ 9,660,997 $ (6,426,484)
<CAPTION>
BNY HAMILTON
INTERMEDIATE
TAX-EXEMPT
FUND
--------------
<S> <C> <C>
Shares issued............ 25,934,046
Net Assets............... $259,340,465
Net Asset Value per
share................... $ 10.00
Unrealized appreciation
of converted Fund....... $ 8,399,206
</TABLE>
In addition, on April 1, 1997, BNY Hamilton Equity Income Fund, BNY Hamilton
Intermediate Government Fund, and BNY Hamilton Intermediate New York Tax-Exempt
Fund transferred shares from their respective
91
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Investor Class of Shares to their respective Institutional Class of Shares as
follows:
<TABLE>
<CAPTION>
BNY HAMILTON BNY HAMILTON
EQUITY INTERMEDIATE
INCOME GOVERNMENT
FUND FUND
-------------- --------------
<S> <C> <C>
Shares converted......... 14,210,212 5,760,887
Dollar amount of
conversion.............. $201,927,107 $ 54,901,254
<CAPTION>
BNY HAMILTON
INTERMEDIATE
NEW YORK
TAX-EXEMPT
FUND
--------------
<S> <C> <C>
Shares converted......... 2,610,884
Dollar amount of
conversion.............. $ 26,526,577
</TABLE>
The shares and dollar amounts for each Fund are included as shares sold and
proceeds from capital stock sold for the Institutional Shares, and as shares
repurchased and cost of capital stock repurchased for the Investor Shares on
each Fund's respective Statement of Changes in Net Assets for the six months
ended June 30, 1997.
2. SIGNIFICANT ACCOUNTING POLICIES
(A) SECURITY VALUATIONS
BNY Hamilton Equity Income Fund (the "Equity Income Fund"), BNY Hamilton
Large Cap Growth Fund (the "Large Cap Growth Fund"), BNY Hamilton Small Cap
Growth Fund (the "Small Cap Growth Fund"), and BNY Hamilton International
Equity Fund (the "International Equity Fund")
Securities listed on a domestic securities exchange, including options on
stock indexes, are valued based on the last sale price as of the close of
regular trading hours on the New York Stock Exchange or, in the absence of
recorded sales, at the average of readily available closing bid and asked prices
on such exchange. Securities listed on a foreign exchange are valued at the last
quoted sale price available before the time when net assets are valued. Unlisted
securities traded only on the over the counter market are valued at the average
of the quoted bid and asked prices in the over-the-counter market.
The market value of written call option or a purchased put option is the last
reported sale price on the principal exchange on which such option is traded or,
if no sales are reported, the average between the last reported bid and asked
prices.
BNY Hamilton Intermediate Government Fund (the "Intermediate Government
Fund"), BNY Hamilton Intermediate Investment Grade Fund (the "Intermediate
Investment Grade Fund"), BNY Hamilton Intermediate New York Tax-Exempt Fund
(the "Intermediate New York Tax-Exempt Fund"), and BNY Hamilton Intermediate
Tax-Exempt Fund (the "Intermediate Tax-Exempt Fund")
Securities are valued using prices supplied daily by an independent pricing
service or services that (1) are based on the last sale price on a national
securities exchange, or in the absence of recorded sales, at the readily
available closing bid price on such exchange or at
92
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
the quoted bid price in the over-the-counter market, if such exchange or market
constitutes the broadest and most representative market for the security, and
(2) in other cases, take into account various factors affecting market value,
including yields and prices of comparable securities, indications as to value
from dealers and general market conditions.
BNY Hamilton Money Fund (the "Money Fund") and BNY Hamilton Treasury Money
Fund (the "Treasury Money Fund")
Securities are valued at amortized cost which approximates market value. This
method values a security at its cost at the time of purchase and thereafter
assumes a constant rate of amortization to maturity of any discount or premium.
All Funds
Portfolio securities with a remaining maturity of 60 days or less are valued
using the amortized cost method. Securities for which market quotations are not
readily available, including investments that are subject to limitations as to
their sale (restricted securities and illiquid securities), are valued at fair
value as determined in good faith by the Board of Directors. In determining fair
value, consideration is given to cost, operating and other financial data.
(B) CURRENCY TRANSLATION
Assets and liabilities denominated in foreign currencies are translated into
U.S. dollars at the mean of the bid and asked price of the respective exchange
rate on the last day of the period. Purchases and sales of investments
denominated in foreign currencies are translated at the exchange rate on the
date of the transaction.
Foreign exchange gain or loss resulting from the sale of an investment,
holding of a foreign currency, expiration of a foreign currency exchange
contract, difference in exchange rates between the trade date and settlement
date of an investment purchased or sold, and the difference between dividends
actually received compared to the amount shown in a Fund's accounting records on
the date of receipt are shown as net realized gains or losses in the respective
Fund's statement of operations.
Foreign exchange gain or loss on assets and liabilities currently shown on the
respective Fund's statement of assets and liabilities are shown as a component
of unrealized appreciation (depreciation).
(C) REPURCHASE AGREEMENTS
A Fund's custodian or designated sub-custodians, as the case may be under
tri-party repurchase agreements, takes possession of the collateral pledged for
investments in repurchase agreements. The underlying collateral is valued daily
on a mark-to-market basis to ensure that the value, including accrued interest,
is at least equal to the repurchase price. In the event of default of the
obligation to repurchase, a Fund has the right to liquidate the collateral and
apply the proceeds in satisfaction of the obligations. Under certain
circumstances, in the event of default or bankruptcy by the other party to the
agreement, realization and/or
93
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
retention of the collateral may be subject to legal proceedings.
(D) WRITTEN OPTIONS AND PURCHASED OPTIONS
All Funds (except the Money Fund and the Treasury Money Fund) may enter into
an option contract for the purpose of either hedging its exposure to the market
fluctuations of the portfolio, or an individual security position. The nature
and risks associated with these securities are explained further in the
Prospectuses and Statement of Additional Information.
When a Fund writes a call option, it will receive a premium. Premiums received
are recorded as liabilities and adjusted to current market value daily. When a
put option is purchased, the Fund will pay a premium. Premiums paid for put
options are included as investments and are also adjusted to their current
market value daily.
If a written call expires, the premium received by the Fund will be treated as
a short term capital gain. Likewise, premiums paid for purchased put options
that expire unexercised will be treated as short term capital losses. In
addition, short term capital gains or losses may be realized on exercised
written calls or purchased puts depending on the premiums received or paid and
the strike price of the underlying securities.
As a writer of call options, a Fund may not have control over the exercising
of such options. As a result, that Fund would bear unlimited market risk of
favorable changes in the value of the call option's underlying securities. The
Fund also bears unlimited market risk in the value of the written call option
itself.
If an option which a Fund has purchased expires on its stipulated expiration
date, it realizes a loss in the amount of the cost of the option. If it enters
into a closing transaction, it realizes a gain or loss, depending on whether the
proceeds from the sale are greater or less than the cost of the option. If the
Fund exercises a put option, it realizes a gain or loss from the sale of the
underlying security and the proceeds from such sale will be decreased by the
premium originally paid. If a Fund exercises a call option, the cost of the
security which it purchases upon exercise will be increased by the premium
originally paid.
(E) FEDERAL INCOME TAXES
Each Fund is created as a separate entity for federal income tax purposes. The
Funds' policy is to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and distribute all of the taxable
and tax-exempt income to the shareholders within the allowable time limits.
Therefore, no federal income tax provision is required.
(F) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
The Intermediate Government Fund, the Intermediate Investment Grade Fund, the
Intermediate New York Tax-Exempt Fund, the Intermediate Tax-Exempt Fund, the
Money Fund and the Treasury Money Fund declare dividends daily and pay dividends
monthly. The Equity Income Fund and the Large Cap
94
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Growth Fund declare and pay dividends monthly. The Small Cap Growth Fund and the
International Equity Fund declare and pay dividends annually, provided that
there is net investment income at the end of the fiscal year.
(G) SECURITY TRANSACTIONS AND INVESTMENT INCOME
Security transactions are recorded on the trade date. Realized gains and
losses on security transactions are determined using the identified cost method.
Dividend income is recognized on the ex-dividend date and interest income is
accrued daily. Discounts on securities purchased for all Funds except for the
Intermediate New York Tax-Exempt Fund and the Intermediate Tax-Exempt Fund, and
premiums on securities purchased for the Intermediate New York Tax-Exempt Fund,
the Intermediate Tax-Exempt Fund, the Money Fund, and the Treasury Money Fund
are amortized.
(H) FINANCIAL STATEMENTS PREPARATION
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses for the
period. Actual results could differ from those estimates.
(I) ORGANIZATION COSTS
Costs incurred in connection with the organization and initial registration of
the Company are being amortized evenly over the period of benefit not to exceed
60 months from the date upon which the Company commenced investment operations.
3. ADVISORY, ADMINISTRATION AND OTHER TRANSACTIONS WITH AFFILIATES
The Bank of New York acts as the Funds' investment adviser (the "Adviser").
The Adviser manages the investments of the Funds and is responsible for all
purchases and sales of the Funds' portfolio securities. The Adviser's fee
accrues daily and is payable monthly at the following annual rates:
<TABLE>
<CAPTION>
% OF AVERAGE
DAILY NET ASSETS
-----------------
<S> <C>
Equity Income Fund.................... .60%
Large Cap Growth Fund................. .60%
Small Cap Growth Fund................. .75%
International Equity Fund............. .425%
Intermediate Government Fund.......... .50%
Intermediate Investment Grade Fund.... .50%
Intermediate New York Tax-
Exempt Fund......................... .50%
Intermediate Tax-Exempt Fund.......... .50%
Money Fund............................ .10%
Treasury Money Fund................... .10%
</TABLE>
The International Equity Fund is also sub-advised by Indosuez International
Investment Services (the "Sub-Adviser"), a subsidiary of Banque Indosuez. The
Sub-Adviser's fee accrues daily and is payable monthly at the rate of .425% of
average daily net assets of the International Equity Fund.
BNY Hamilton Distributors, Inc. acts as the Funds' administrator (the
"Administrator") and will assist generally in supervising the operations of the
Funds.
95
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The Administrator has agreed to provide facilities, equipment and personnel to
carry out administrative services for the Funds, including, among other things,
providing the services of persons who may be appointed as officers and directors
of the Funds, monitoring the custodian, fund accounting, transfer agency,
administration, distribution, advisory and legal services that are provided to
the Funds.
The Administrator's fee is accrued daily and is payable monthly computed
utilizing the following annual rates:
<TABLE>
<CAPTION>
% OF AVERAGE
DAILY NET ASSETS
-----------------
<S> <C>
Equity Income Fund.................... .20%
Large Cap Growth Fund................. .20%
Small Cap Growth Fund................. .20%
International Equity Fund............. .20%
Intermediate Government Fund.......... .20%
Intermediate Investment Grade Fund.... .20%
Intermediate New York Tax-
Exempt Fund......................... .20%
Intermediate Tax-Exempt Fund.......... .20%
Money Fund............................ .10%
Treasury Money Fund................... .10%
</TABLE>
In addition to acting as Administrator, BNY Hamilton Distributors, Inc. is the
principal underwriter and distributor of shares of the Funds.
The Bank of New York serves as the Funds' custodian and also serves as the
fund accounting agent.
As of June 30, 1997, the Bank of New York has voluntarily agreed to
assume/waive expenses for the Large Cap Growth Fund, the Small Cap Growth Fund,
the International Equity Fund, the Intermediate Government Fund, the
Intermediate Investment Grade Fund, the Intermediate New York Tax-Exempt Fund,
the Intermediate Tax-Exempt Fund, and the Treasury Money Fund to the extent that
each Fund's expense ratio exceeded the percentage of average daily net assets as
shown below:
<TABLE>
<CAPTION>
INSTITUTIONAL INVESTOR
SHARES SHARES
------------- -----------------
<S> <C> <C>
Large Cap Growth
Fund................. .82% 1.07%
Small Cap Growth
Fund................. .97% 1.22%
International Equity
Fund................. 1.27% 1.52%
Intermediate Government
Fund................. .90% 1.15%
Intermediate Investment
Grade Fund........... .90% 1.15%
Intermediate New York
Tax-Exempt Fund...... .90% 1.15%
Intermediate Tax-Exempt
Fund................. .90% 1.15%
<CAPTION>
HAMILTON HAMILTON PREMIER
SHARES SHARES
------------- -----------------
<S> <C> <C>
Treasury Money Fund.... .25% .50%
</TABLE>
Expenses are not limited by the Adviser for the Equity Income Fund and the
Money Fund. Management reserves the right to implement or discontinue expense
limitations at any time.
The Company has adopted a distribution plan (the "12b-1 Plans") with respect
to each Fund (except for the Treasury Money Fund). Under the 12b-1 Plans, the
Funds will pay the Distributor for distribution expenses
96
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
incurred in connection with sales of shares as outlined in the following chart:
<TABLE>
<CAPTION>
DATE OF
IMPLEMENTATION OF
NAME OF FUND CLASS 12B-1 PLAN
- ------------------------- -------------------- ------------------
<S> <C> <C>
Equity Income Fund....... Investor April 1, 1997
Large Cap Growth Fund.... Investor May 1, 1997
Small Cap Growth Fund.... Investor May 1, 1997
International Equity
Fund................... Investor May 1, 1997
Intermediate Government
Fund................... Investor April 1, 1997
Intermediate Investment
Grade Fund............. Investor May 1, 1997
Intermediate New York
Tax-Exempt Fund........ Investor April 1, 1997
Intermediate
Tax-Exempt Fund........ Investor May 1, 1997
Money Fund............... Hamilton Classic December 4, 1995
</TABLE>
Payments for distribution expenses may not exceed .25% of the average daily
net assets of each class noted in the chart above.
BNY Hamilton Funds, Inc. has adopted a shareholder servicing plan for the
Money Fund and the Treasury Money Fund, pursuant to which, Hamilton Premier
Shares and Hamilton Classic Shares of the Money Fund and Hamilton Premier Shares
of the Treasury Money Fund are sold to certain institutions that enter into
servicing agreements with BNY Hamilton Funds, Inc. The Bank of New York and the
Administrator (the "Shareholder Servicing Agents") have each entered into
Shareholder Service Agreements with respect to these Shares. The Shareholder
Servicing Agents will perform shareholder support services. Pursuant to the
Shareholder Service Agreements, Hamilton Premier Shares and Hamilton Classic
Shares of the Money Fund and Hamilton Premier Shares of the Treasury Money Fund
will pay the Shareholder Servicing Agents an annual shareholder servicing fee,
accrued daily and payable monthly, of .25% of the Shares' respective average
daily net asstes. The shareholder servicing plan does not cover, and the fees
thereunder are not payable to, Shareholder Organizations with respect to
Hamilton Shares of the Money Fund and the Treasury Money Fund.
4. PORTFOLIO SECURITIES
During the periods indicated for the respective Funds, 1997, the cost
purchases and the proceeds from sales of securities, other than short-term
securities, were as follows:
<TABLE>
<CAPTION>
EQUITY INCOME FUND (A)
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities...... $ -- $ --
All Others............... 291,724,159 95,125,820
<CAPTION>
LARGE CAP GROWTH FUND (B)
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities...... $ -- $ --
All Others............... 34,337,862 32,017,521
<CAPTION>
SMALL CAP GROWTH FUND (B)
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities...... $ -- $ --
All Others............... 44,638,631 26,170,623
<CAPTION>
INTERNATIONAL EQUITY
FUND (B)
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities...... $ -- $ --
All Others............... 52,309,579 2,795,173
</TABLE>
97
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
INTERMEDIATE
GOVERNMENT FUND (A)
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities...... $ 14,072,890 $ 12,020,122
All Others............... 779,327 40,000
<CAPTION>
INTERMEDIATE INVESTMENT
GRADE FUND (B)
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities...... $ 38,382,791 $ 44,770,594
All Others............... 67,766,432 42,972,126
<CAPTION>
INTERMEDIATE NEW YORK
TAX-EXEMPT FUND (A)
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities...... $ -- $ --
All Others............... 7,449,311 6,272,443
<CAPTION>
INTERMEDIATE TAX-EXEMPT
FUND (B)
----------------------------
PURCHASES SALES
------------- -------------
<S> <C> <C>
US Gov't Securities...... $ -- $ --
All Others............... 38,068,018 29,406,325
</TABLE>
(A) FOR THE SIX MONTHS ENDED JUNE 30, 1997.
(B) FOR THE PERIOD APRIL 1, 1997 (COMMENCEMENT OF INVESTMENT OPERATIONS) THROUGH
JUNE 30, 1997.
5. FEDERAL INCOME TAXES
For federal income tax purposes, the Funds indicated below have capital loss
carryforwards as of December 31, 1996 which are available to offset future
capital gains, if any. Accordingly, no capital gains distribution is expected to
be paid to shareholders until net gains have been realized in excess of such
amounts.
<TABLE>
<CAPTION>
CAPITAL LOSS
CARRYFORWARD EXPIRATION
-------------- -------------
<S> <C> <C>
Intermediate Government
Fund..................... $ 1,358,600 2002
681,600 2003
535,000 2004
Intermediate New York
Tax-Exempt Fund.......... 241,300 2002
75,600 2003
</TABLE>
6. WRITTEN OPTION ACTIVITY
Transactions in written options were as follows:
EQUITY INCOME FUND
FOR THE SIX MONTHS ENDED JUNE 30, 1997:
<TABLE>
<CAPTION>
NUMBER OF PREMIUMS
CONTRACTS RECEIVED
--------------- -----------
<S> <C> <C>
Options outstanding at
December 31, 1996......... -0- $ -0-
Options written during the
six months ended June 30,
1997...................... 1,350 603,430
----- -----------
Options outstanding at June
30, 1997.................. 1,350 $ 603,430
----- -----------
----- -----------
</TABLE>
There were no options cancelled or expired during the six months ended June 30,
1997.
98
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
SMALL CAP GROWTH FUND
FOR THE PERIOD APRIL 1, 1997 (COMMENCEMENT OF INVESTMENT OPERATIONS) THROUGH
JUNE 30, 1997:
<TABLE>
<CAPTION>
NUMBER OF PREMIUMS
CONTRACTS RECEIVED
--------------- -----------
<S> <C> <C>
Options outstanding at
December 31, 1996......... -0- $ -0-
Options written during the
period April 1, 1997
(commencement of
investment operations)
through June 30, 1997..... 270 19,439
----- -----------
Options outstanding at June
30, 1997.................. 270 $ 19,439
----- -----------
----- -----------
</TABLE>
There were no options cancelled or expired for the period April 1, 1997 through
June 30, 1997.
99
<PAGE>
100
<PAGE>
101
<PAGE>
DIRECTORS AND OFFICERS
Edward L. Gardner, Director and Chairman of the Board
Peter Herrick, Director
Leif H. Olsen, Director
Stephen Stamas, Director
James E. Quinn, Director
J. David Huber, Chief Executive Officer
William J. Tomko, President
Michael J. Brascetra, Vice President
Mary A. Madick, Vice President
Anthony L. Mercure, Vice President
Thresa Dewar, Treasurer
George O. Martinez, Secretary
Alaina Metz, Assistant Secretary
Bruce Treff, Assistant Secretary
INVESTMENT ADVISER
The Bank of New York
ADMINISTRATOR AND DISTRIBUTOR
BNY Hamilton Distributors, Inc.
TRANSFER AGENT
BISYS Fund Services, Ohio, Inc.
CUSTODIAN
The Bank of New York
INDEPENDENT ACCOUNTANTS
KPMG Peat Marwick LLP
LEGAL COUNSEL
Sullivan & Cromwell
102
<PAGE>
BNY HAMILTON DISTRIBUTORS, INC., IS THE FUNDS' DISTRIBUTOR AND IS
UNAFFILIATED WITH THE BANK OF NEW YORK, THE INVESTMENT ADVISER.
This report is not authorized for distribution to prospective investors
unless preceded or accompanied by a current prospectus for Hamilton Shares of
BNY Hamilton Money Fund and BNY Hamilton Treasury Money Fund, Hamilton
Premier shares of BNY Hamilton Money Fund and BNY Hamilton Treasury Money
Fund, Hamilton Classic Shares of BNY Hamilton Money Fund, Equity Funds,
Taxable Fixed Income Funds or Tax-Exempt Fixed Income Funds. For additional
prospectuses which contain more complete information, including charges and
expenses, call 1-800-426-9363. Please read the prospectus carefully before
investing or sending money.
INVESTMENTS IN THE FUNDS ARE NOT DEPOSITS, ARE NEITHER GUARANTEED BY NOR
OBLIGATIONS OF THE BANK OF NEW YORK AND ARE NOT INSURED BY THE FDIC OR ANY
OTHER GOVERNMENTAL AGENCY. INVESTMENTS IN MUTUAL FUNDS INVOLVE RISKS,
INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
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BNY HAMILTON FUNDS
3435 STELZER ROAD, COLUMBUS, OH 43219-3035
