The Arbor Fund
Semi-Annual Report
AS OF JULY 31, 1997
[GOLDEN OAK LOGO]
Golden Oak
Family of Funds
ADVISED BY
CITIZENS BANK
<PAGE>
TABLE OF CONTENTS
Letter to Shareholders .................................................... 2
Statement of Net Assets ................................................... 3
Statement of Operations ................................................... 17
Statement of Changes in Net Assets ........................................ 18
Financial Highlights ...................................................... 20
Notes to Financial Statements ............................................. 21
<PAGE>
Dear Shareholder:
We believe performance of the economy and the strength of the domestic stock
market have been absolutely incredible. Although the current economic expansion
is more than six years old, the quality of the data continues to be very
encouraging. For example, total employment continues to grow busily, inflation
is low and steady, productivity improvement is impressive, and corporate
earnings continue to grow at a double-digit rate. In our opinion, it just
doesn't get any better than this.
U.S. stocks -- after a brief correction in late March and early April --
continued to surge ahead. In contrast to the wide performance variance in late
1996 and early 1997 between stocks of large companies and small firms, the
second quarter rise was uniformly strong.
The serendipitous combination of economic and financial factors, supplemented by
positive sentiment among investors and business people, has produced this
historic expansion of wealth. As Barron's Financial News Weekly recently noted,
the average annual return on stocks during the past fifteen years has been the
highest this nation has ever seen. Although there are no economic "storm
clouds" in sight, we continue to believe that diversity of investments by asset
class and style will be important for future wealth building. Well planned
diversification contributes to less fluctuation in overall portfolio performance
and, in turn, enhances the compounding effect on the portfolio value.
On June 23, the Golden Oak Family of Funds expanded to include the Value and the
Michigan Tax Free Bond Portfolios. The increased breadth of styles will enable
investors to satisfy an even wider range of objectives.
Systematic Financial Management will be working with us as sub-adviser to the
Value Portfolio. We chose Systematic based on their superior track record
(Nelson ranked them in the top 20% of equity managers for the six year period
ending 12/31/96) and a clear, disciplined investing process. We expect them to
play a key role in assisting Golden Oak shareholders to reach their financial
goals.
We appreciate the opportunity to serve your investment needs, and hope that the
information in this report is useful to you.
Sincerely,
/S/ SIGNATURE
Dana A. Czmer
Senior Vice President & Trust Officer
Citizens Bank
2
<PAGE>
STATEMENT OF NET ASSETS GOLDEN OAK FAMILY OF FUNDS
July 31, 1997 Unaudited
GROWTH Value
PORTFOLIO Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK -- 96.0%
AIR TRANSPORTATION -- 1.1%
Delta Air Lines .................. 5,000 $ 444
------
APPAREL -- 1.1%
Liz Claiborne .................... 9,100 436
------
APPAREL/TEXTILES -- 4.1%
Jones Apparel Group* ............. 10,600 551
Unifi ............................ 13,200 504
VF Corporation ................... 6,700 601
------
Total Apparel/Textiles ... 1,656
------
AUTOMOTIVE -- 1.6%
Paccar ........................... 12,800 635
------
BANKS -- 1.8%
Star Banc ........................ 3,000 141
State Street ..................... 10,700 600
------
Total Banks .............. 741
------
BEAUTY PRODUCTS -- 1.1%
Amway Asia Pacific LTD ........... 11,500 442
------
BROADCASTING, NEWSPAPERS AND ADVERTISING -- 1.5%
Omnicom Group .................... 8,400 586
------
COMMUNICATIONS EQUIPMENT -- 1.3%
ADC Telecommunications* .......... 13,300 537
------
COMPUTER SOFTWARE -- 3.9%
Compuware* ....................... 10,200 631
Microsoft* 6,800 962
------
Total Computer Software .. 1,593
------
COMPUTERS & SERVICES -- 9.6%
Compaq Computer* ................. 14,000 800
Dell Computer* ................... 14,400 1,231
EMC* ............................. 12,600 636
Quantum* ......................... 22,200 645
Western Digital* ................. 14,400 554
------
Total Computers & Services 3,866
------
COMPUTERS/OFFICE AUTOMATION -- 1.8%
Adaptec* ......................... 12,800 539
Sun Microsystems* ................ 4,000 183
-------
Total Computers/Office Automation 722
-------
GROWTH Value
PORTFOLIO (continued) Shares (000)
- --------------------------------------------------------------------------------
CONTAINERS & PACKAGING -- 1.3%
Owens-Illinois* .................. 15,700 $ 542
-------
DRUGS -- 7.9%
Bristol-Myers Squibb ............. 11,600 910
Schering Plough .................. 19,800 1,080
Warner Lambert ................... 8,500 1,187
-------
Total Drugs .............. 3,177
-------
FINANCIAL SERVICES -- 4.9%
Bear Stearns ..................... 4,740 193
Greenpoint Financial ............. 7,900 520
MBNA ............................. 8,900 400
SLM Holding Corporation .......... 5,700 855
-------
Total Financial Services . 1,968
-------
FOOD, BEVERAGE & TOBACCO -- 0.4%
RJR Nabisco ...................... 4,500 148
-------
GLASS PRODUCTS -- 2.2%
Corning .......................... 14,300 884
-------
HOTELS & LODGING -- 0.5%
Marriott International ........... 3,000 206
-------
HOUSEHOLD PRODUCTS -- 1.4%
Sunbeam Oster .................... 13,900 544
-------
INDUSTRIAL -- 1.7%
Tyco International Limited ....... 8,700 705
-------
INSURANCE -- 3.3%
Ace Limited ...................... 7,000 574
Oxford Health Plan* 9,000 757
-------
Total Insurance .......... 1,331
-------
MACHINERY -- 5.2%
Caterpillar ...................... 9,800 549
General Electric ................. 22,200 1,558
-------
Total Machinery 2,107
-------
MEDICAL SUPPLIES -- 3.6%
Elan ADR ......................... 18,600 884
Guidant .......................... 6,400 584
-------
Total Medical Supplies ... 1,468
-------
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 1997 Unaudited
GROWTH Value
PORTFOLIO (continued) Shares (000)
- --------------------------------------------------------------------------------
MISCELLANEOUS BUSINESS SERVICES -- 1.9%
Altera* ........................ 10,300 $ 622
Ecolab ......................... 3,300 154
------
Total Miscellaneous Business Services 776
------
MISCELLANEOUS CONSUMER SERVICES -- 1.4%
Robert Half International* ..... 10,600 584
------
MULTI-LINE INSURERS -- 2.2%
Travelers ...................... 12,588 906
------
OTHER HEALTH SERVICES -- 1.7%
HBO ............................ 8,778 679
------
PETROLEUM & FUEL PRODUCTS -- 6.4%
BJ Services* ................... 8,700 566
Global Marine* ................. 21,800 624
Rowan* ......................... 10,200 335
Tidewater ...................... 11,100 561
USX-Marathon Group ............. 15,700 505
------
Total Petroleum & Fuel Products 2,591
------
PRINTING & PUBLISHING -- 1.2%
New York Times, Class A ........ 9,300 467
------
RETAIL -- 9.1%
Costco* ........................ 15,100 572
Dayton-Hudson .................. 9,200 595
Dollar General ................. 18,375 809
F.W. Woolworth* ................ 19,700 558
Tandy .......................... 8,600 511
TJX ............................ 21,200 633
------
Total Retail ........... 3,678
------
SEMI-CONDUCTORS/INSTRUMENTS -- 3.2%
Applied Materials* ............. 9,100 836
National Semiconductor* ........ 5,200 479
------
Total Semi-Conductors/Instruments 1,315
------
SOFTWARE -- 3.3%
BMC Software* .................. 12,600 759
Peoplesoft* .................... 9,900 579
------
Total Software ......... 1,338
------
TELEPHONES & TELECOMMUNICATION -- 1.9%
Tellabs* ....................... 12,600 754
------
WHOLESALE -- 2.4%
McKesson ....................... 11,300 980
------
Face
GROWTH Amount Value
PORTFOLIO (concluded) (000) (000)
- --------------------------------------------------------------------------------
Total Common Stock
(Cost $27,450) $38,806
-------
REPURCHASE AGREEMENT -- 4.0%
J.P. Morgan Government Securities (A)
5.70%, dated 07/31/97, matures
08/01/97, repurchase price
$1,620,020 (collateralized by
U.S. Treasury Bond, par value
$1,363,000, 7.875%, 02/15/21;
market value $1,652,231) ..... $1,620 1,620
-------
Total Repurchase Agreement
(Cost $1,620) ......... 1,620
-------
Total Investments -- 100.0%
(Cost $29,070) 40,426
-------
OTHER ASSETS AND LIABILITIES, NET -- 0.0% 18
-------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
2,627,246 outstanding shares of
beneficial interest .......... 25,851
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
18,329 outstanding shares of
beneficial interest .......... 179
Distributions in Excess of Net
Investment Income ............ (15)
Accumulated Net Realized Gain
on Investments ............... 3,073
Net Unrealized Appreciation
on Investments ............... 11,356
-------
Total Net Assets -- 100.0% ....... $40,444
=======
Net Asset Value, Offering and Redemption
Price Per Share -- Class I ... $15.29
=======
Net Asset Value and Redemption Price Per
Share -- Class A ............. $15.16
=======
Maximum Offering Price Per Share --
Class A ($15.16 / 94.25% ) .. $16.08
=======
- ----------------------------------------------------
* Non-income producing security
ADR -- American Depository Receipt
(A) Tri-Party Repurchase Agreement
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 1997 Unaudited
VALUE Value
PORTFOLIO Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK -- 98.4%
AIR TRANSPORTATION -- 0.8%
Delta Air Lines ................. 2,600 $ 231
------
AIRCRAFT -- 3.9%
Boeing .......................... 6,000 353
Lockheed Martin ................. 3,660 390
McDonnell Douglas ............... 4,800 367
------
Total Aircraft .......... 1,110
------
AUTOMOTIVE -- 5.6%
Chrysler ........................ 12,810 476
Dana ............................ 12,520 569
Ford Motor ...................... 13,285 543
------
Total Automotive ........ 1,588
------
BANKS -- 15.1%
Chase Manhattan ................. 3,675 417
Citicorp ........................ 3,900 529
First Union ..................... 5,300 538
Fleet Financial Group ........... 7,800 529
J P Morgan ...................... 2,930 339
Mellon Bank ..................... 11,320 571
NationsBank ..................... 5,660 403
Norwest ......................... 9,400 593
Republic New York ............... 2,860 330
------
Total Banks ............. 4,249
------
BEAUTY PRODUCTS -- 1.8%
Procter & Gamble ................ 3,250 494
------
CHEMICALS -- 3.6%
Dow Chemical .................... 2,520 239
E.I. du Pont de Nemours ......... 6,360 426
Hercules ........................ 6,705 356
------
Total Chemicals ......... 1,021
------
COMPUTERS & SERVICES -- 7.8%
Computer Associates International 5,505 375
Hewlett Packard ................. 8,760 614
International Business Machines 8,450 894
Quantum* ........................ 10,800 314
------
Total Computers & Services 2,197
------
DRUGS -- 1.1%
Johnson & Johnson ............... 5,060 315
------
VALUE Value
PORTFOLIO (continued) Shares (000)
- --------------------------------------------------------------------------------
ELECTRICAL UTILITIES -- 3.8%
Duke Power ...................... 7,535 $ 382
FPL Group ....................... 7,350 352
Nipsco Industries ............... 7,860 331
------
Total Electrical Utilities 1,065
------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT -- 1.1%
General Electric ................ 4,600 323
------
FINANCIAL SERVICES -- 6.4%
Fannie Mae ...................... 11,830 560
Household International ......... 4,800 622
MBNA ............................ 13,855 623
------
Total Financial Services 1,805
------
INDUSTRIAL -- 1.0%
Tyco International Limited ...... 3,540 287
------
INSURANCE -- 7.0%
AIG ............................. 5,850 623
Allstate ........................ 5,941 469
Sunamerica ...................... 9,800 593
Wellpoint Health Networks* ...... 5,900 291
------
Total Insurance ......... 1,976
------
MACHINERY -- 2.9%
Baker Hughes .................... 6,000 264
Deere ........................... 3,720 212
The Williams Companies .......... 7,300 334
------
Total Machinery 810
------
MEDICAL PRODUCTS & SERVICES -- 0.6%
Baxter International ............ 2,716 157
------
METALS & MINING -- 4.4%
Aluminum Company of America ..... 6,800 602
Phelps Dodge .................... 4,190 356
Reynolds Metals ................. 3,500 273
------
Total Metals & Mining 1,231
------
MISCELLANEOUS BUSINESS SERVICES -- 3.8%
Automatic Data Processing ....... 7,540 373
Halliburton ..................... 8,820 406
Textron ......................... 4,000 280
------
Total Miscellaneous Business Services 1,059
------
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 1997 Unaudited
VALUE Shares/Face Value
PORTFOLIO (continued) Amount (000) (000)
- --------------------------------------------------------------------------------
OFFICE FURNITURE & FIXTURES -- 1.2%
Hon Industries .................. 5,800 $ 347
-------
PETROLEUM REFINING -- 15.6%
Atlantic Richfield .............. 3,000 224
British Petroleum ADR ........... 5,500 453
Chevron ......................... 4,900 388
Exxon ........................... 18,800 1,208
Mobil ........................... 6,440 493
Pacific Enterprises ............. 11,230 375
Royal Dutch Petroleum ADR ....... 17,480 978
Texaco .......................... 2,430 282
-------
Total Petroleum Refining 4,401
-------
RETAIL -- 1.1%
Family Dollar Stores ............ 9,500 309
-------
SEMI-CONDUCTORS/INSTRUMENTS -- 2.9%
Motorola ........................ 3,000 241
National Semiconductor* ......... 18,700 589
-------
Total Semi-Conductors/Instruments 830
-------
TELEPHONES & TELECOMMUNICATION -- 4.0%
Bell Atlantic ................... 5,470 397
SBC ............................. 6,600 391
US West ......................... 9,560 349
-------
Total Telephones & Telecommunication 1,137
-------
TRANSPORTATION SERVICES -- 2.9%
CNF Transportation .............. 8,595 300
CSX ............................. 8,400 519
-------
Total Transportation Services 819
-------
Total Common Stock
(Cost $13,624) ....... 27,761
-------
CASH EQUIVALENTS -- 1.7%
Corefund Elite
Cash Reserve ................ $490 490
-------
Total Cash Equivalents
(Cost $490) .......... 490
-------
Total Investments -- 100.1%
(Cost $14,114) ....... 28,251
-------
VALUE Value
PORTFOLIO (concluded) (000)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET -- (0.1%) $ (37)
-------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
2,617,254 outstanding shares of
beneficial interest ......... 13,460
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
10 outstanding shares of
beneficial interest ......... --
Undistributed Net Investment Income 20
Accumulated Net Realized Gain
on Investments .............. 597
Net Unrealized Appreciation
on Investments .............. 14,137
-------
Total Net Assets -- 100.0% ...... $28,214
=======
Net Asset Value, Offering and Redemption
Price Per Share -- Class I .. $10.78
=======
Net Asset Value and Redemption Price
Per Share -- Class A ........ $10.78
=======
Maximum Offering Price Per Share --
Class A ($10.78 / 94.25%) ... $11.44
=======
- ----------------------------------------------------
* Non-income producing securities
Amounts designated as "--" are either $0 or have
been rounded to $0.
ADR -- American Depository Receipt
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 1997 Unaudited
Face
INTERMEDIATE-TERM INCOME Amount Value
PORTFOLIO (continued) (000) (000)
- --------------------------------------------------------------------------------
CORPORATE OBLIGATIONS -- 26.8%
BANKING -- 0.8%
Bank of Montreal
10.000%, 09/01/98 .......... $1,000 $ 1,044
-------
FINANCIAL SERVICES -- 8.7%
American Express Credit
8.500%, 06/15/99 ........... 500 522
Associates Corporation of North America
8.550%, 07/15/09 ........... 2,000 2,312
Chrysler Financial
13.250%, 10/15/99 ........... 1,000 1,145
6.950%, 03/25/02 ........... 3,000 3,068
Ford Motor Credit
6.250%, 11/08/00 ........... 1,000 1,001
8.200%, 02/15/02 ........... 1,000 1,071
Household Finance
9.950%, 03/08/01 ........... 500 557
Lehman Brothers Holding
5.750%, 02/15/98 ........... 1,000 1,000
-------
Total Financial Services 10,676
-------
INDUSTRIAL -- 15.3%
Archer Daniels Midland
10.250%, 01/15/06 ........... 1,000 1,243
Eli Lilly
8.375%, 12/01/06 ........... 1,000 1,133
Hertz
7.000%, 11/01/02 ........... 2,800 2,859
Honeywell
6.750%, 03/15/02 ........... 4,000 4,065
International Lease Finance
6.270%, 02/10/99 ........... 1,725 1,734
Kaiser Permanente
9.550%, 07/15/05 ........... 1,390 1,640
Philip Morris
7.000%, 07/15/05 ........... 1,500 1,517
RR Donnelley & Sons
9.125%, 12/01/00 ........... 500 544
Union Pacific, Callable
01/15/01 @ 100
6.125%, 01/15/04 ........... 1,000 968
US Airways
6.760%, 04/15/08 ........... 962 966
WMX Technologies
7.000%, 05/15/05 ........... 2,000 2,050
-------
Total Industrial ....... 18,719
-------
Face
INTERMEDIATE-TERM INCOME Amount Value
PORTFOLIO (continued) (000) (000)
- --------------------------------------------------------------------------------
UTILITIES -- 2.0%
Consolidated Edison of NY
6.500%, 02/01/01 ........... $1,000 $ 1,011
Pacific Gas and Electric
8.750%, 01/01/01 ........... 1,300 1,402
-------
Total Utilities ........ 2,413
-------
Total Corporate Obligations
(Cost $32,399) ...... 32,852
-------
U.S. GOVERNMENT AGENCY BONDS -- 6.3%
FHLB
8.120%, 09/26/06 ........... 1,760 1,767
FHLMC
6.310%, 02/23/04 ........... 2,000 1,977
FNMA
6.860%, 04/24/00 ........... 1,500 1,504
5.990%, 10/01/03 ........... 1,500 1,471
SLMA
6.050%, 09/14/00 ........... 1,000 1,002
-------
Total U.S. Government Agency Bonds
(Cost $7,723) ....... 7,721
-------
U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS -- 8.8%
FHLMC
5.600%, 09/15/00 ........... 2,149 2,118
5.200%, 01/15/15 ........... 1,000 995
FNMA
5.750%, 06/25/06 ........... 1,008 1,005
7.230%, 11/01/06 ........... 2,328 2,365
7.500%, 06/17/22 ........... 2,000 2,078
FNMA REMIC
7.174%, 04/25/20 ........... 2,215 2,222
-------
Total U.S. Agency Mortgage-Backed
Obligations
(Cost $10,688) ...... 10,783
-------
U.S. TREASURY OBLIGATIONS -- 51.7%
U.S. Treasury Bond
6.000%, 08/15/99 ........... 8,000 8,036
U.S. Treasury Notes
7.875%, 04/15/98 ........... 8,300 8,431
7.000%, 04/15/99 ........... 5,000 5,104
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 1997 Unaudited
Face
INTERMEDIATE-TERM INCOME Amount Value
PORTFOLIO (continued) (000) (000)
- --------------------------------------------------------------------------------
U.S. Treasury Obligations -- (CONTINUED)
7.750%, 02/15/01 ........... $11,500 $ 12,200
6.250%, 04/30/01 ........... 3,000 3,040
7.500%, 05/15/02 ........... 2,700 2,879
6.375%, 08/15/02 ........... 10,000 10,206
7.875%, 11/15/04 ........... 7,600 8,430
5.875%, 11/15/05 ........... 3,000 2,966
6.625%, 05/15/07 ........... 2,000 2,089
--------
Total U.S. Treasury Obligations
(Cost $62,627) ...... 63,381
--------
ASSET-BACKED SECURITIES -- 4.4%
Bay View Auto Trust 1997-RA-1
6.290%, 12/15/01 ........... 1,407 1,411
Olympic Automobile Receivables
Trust 1996-A A3
5.700%, 04/15/00 ........... 2,000 2,000
WFS Financial Owner Trust 1996-B A3
6.650%, 08/20/00 ........... 2,000 2,016
--------
Total Asset-Backed Securities
(Cost $5,398) ....... 5,427
--------
REPURCHASE AGREEMENT -- 0.6%
Dresdner Government Securities (A)
5.70%, dated 07/31/97, matures
08/01/97, repurchase price $750,434
(collateralized by U.S. Treasury
Inflation Note, par value $765,000,
3.625%, 07/15/02; market
value $765,996) ............ 750 750
--------
Total Repurchase Agreement
(Cost $750) ......... 750
--------
Total Investments -- 98.6%
(Cost $119,585) ..... 120,914
--------
OTHER ASSETS AND LIABILITIES, NET -- 1.4% 1,713
--------
INTERMEDIATE-TERM INCOME Value
PORTFOLIO (concluded) (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
12,319,774 outstanding shares of
beneficial interest ................. $122,367
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
6,203 outstanding shares of
beneficial interest ................. 74
Accumulated Net Realized Loss
on Investments ...................... (1,143)
Net Unrealized Appreciation
on Investments ...................... 1,329
--------
Total Net Assets -- 100.0% .............. $122,627
========
Net Asset Value, Offering and Redemption
Price Per Share -- Class I .......... $9.95
========
Net Asset Value and Redemption Price
Per Share -- Class A ................ $9.94
========
Maximum Offering Price Per Share --
Class A ($9.94 / 95.5%) ............. $10.41
========
- ----------------------------------------------------
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
REMIC -- Real Estate Mortgage Investment Conduit
SLMA -- Student Loan Marketing Association
(A) Tri-Party Repurchase Agreement
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 1997 Unaudited
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO (000) (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 100.2%
MICHIGAN -- 100.2%
Alpena County, General Obligation
Bond, AMBAC
5.450%, 06/01/01 ............ $ 250 $ 261
Anchor Bay School District, General
Obligation Bond
6.000%, 05/01/03 ............ 870 942
Ann Arbor Unlimited General
Obligation Bond Ser A
8.250%, 09/01/98 ............ 150 157
Ann Arbor Water Supply System,
Revenue Bond, MBIA
7.375%, 02/01/02 ............ 1,000 1,124
Auburn Hills Finance Authority,
Tax Allocation (A)
7.000%, 05/01/00 ............ 300 308
Avondale School District,
General Obligation Bond
6.600%, 05/01/05 ............ 200 215
6.700%, 05/01/06 ............ 200 216
Big Rapids Public School District,
General Obligation Bond, FGIC
7.300%, 05/01/05 ............ 250 297
Brighton Area School District,
General Obligation Bond,
Pre-refunded @ 101.50 (B)
6.400%, 05/01/00 ............ 100 107
Cadillac Water Supply,
Pre-refunded @ 100 (B)
7.300%, 09/01/99 ............ 100 106
Calhoun County, General
Obligation Bond
4.950%, 07/01/03 ............ 1,000 1,032
Central Michigan State Michigan
University, FGIC
5.200%, 10/01/09 ............ 860 889
Cheboygan Area School District,
General Obligation Bond, MBIA
6.000%, 05/01/02 ............ 260 279
Chippewa Valley School District,
General Obligation Bond,
Pre-refunded @ 101.50 FGIC (B)
6.200%, 05/01/01 ............ 250 271
Clarkston Community Schools,
General Obligation Bond, FGIC
5.800%, 05/01/13 ............ 1,000 1,051
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO (continued) (000) (000)
- --------------------------------------------------------------------------------
Clinton County Building Authority,
General Obligation Bond,
Ser 1990-1, Pre-refunded @ 102 (B)
6.750%, 09/01/98 ............ $ 100 $ 105
Clinton County Building Authority
Macomb County Project, Ser A
Pre-refunded @ 102, AMBAC (B)
6.400%, 11/01/01 ............ 250 276
Comstock Public School System,
General Obligation Bond, FSA
6.450%, 05/01/98 ............ 105 107
De Witt Public Schools, General
Obligation Bond
6.600%, 05/01/06 ............ 300 329
De Witt Public Schools, General
Obligation Bond, AMBAC
6.000%, 05/01/03 ............ 935 1,012
Dearborn Building Authority, General
Obligation Bond, AMBAC
7.000%, 06/01/01 ............ 300 329
Dearborn Municipal Building Authority,
General Obligation Bond, AMBAC
7.000%, 06/01/02 ............ 475 530
7.000%, 06/01/03 ............ 505 572
Detroit Water Supply System Second
Lien Revenue Bond, Ser A
5.100%, 07/01/07 ............ 500 524
Detroit Distributable State Aid,
General Obligation Bond, AMBAC
5.000%, 05/01/05 ............ 200 205
Detroit School District, General
Obligation Bond, AMBAC
6.250%, 05/01/12 ............ 850 911
Detroit School District, General
Obligation Bond, Ser XXIII,
AMBAC
7.750%, 05/01/10 ............ 100 111
Detroit General Obligation,
Pre-refunded @ 102 (B)
8.000%, 04/01/11 ............ 1,000 1,149
Detroit General Obligation Bond,
AMBAC
5.250%, 05/01/08 ............ 1,000 1,036
Detroit Sewer Disposal, Revenue
Bond
7.250%, 07/01/04 ............ 200 215
Detroit Water Supply System,
Revenue Bond, FGIC
6.250%, 07/01/07 ............ 500 537
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 1997 Unaudited
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO (continued) (000) (000)
- --------------------------------------------------------------------------------
MICHIGAN -- (CONTINUED)
East Lansing, Refunded General
Obligation Bond, Ser B
4.850%, 10/01/07 ............ $ 315 $ 317
Eastern Michigan University,
Revenue Bond, AMBAC
4.700%, 06/01/03 ............ 200 204
Eastern Michigan University Special
Student Fee Projects, Pre-refunded
@ 101, AMBAC (B)
6.700%, 06/01/01 ............ 300 330
Ferris State University Revenue
Bond, AMBAC
5.400%, 10/01/09 ............ 675 710
Flat Rock Community School District,
General Obligation Bond, MBIA
7.750%, 05/01/04 ............ 675 807
Flint General Obligation Bond, MBIA
6.000%, 11/01/03 ............ 1,040 1,130
Fraser Public School District, General
Obligation Bond, AMBAC
6.550%, 05/01/99 ............ 100 104
Gobles Public Schools, General
Obligation Bond, AMBAC
5.300%, 05/01/06 ............ 210 213
5.400%, 05/01/07 ............ 235 238
Grand Rapids Building Authority,
Revenue Bond
5.375%, 04/01/07 ............ 200 209
Grand Rapids Downtown Development
Authority, Tax Increment Revenue,
MBIA
6.600%, 06/01/08 ............ 200 226
Grand Rapids Water Supply,
Revenue Bond, FGIC
6.400%, 01/01/05 ............ 1,000 1,081
Grand Valley Michigan State
University, Revenue Bond
4.300%, 10/01/01 ............ 500 503
Grandville Public School District,
General Obligation Bond
4.000%, 05/01/99 ............ 345 345
Haslett Public School District,
General Obligation Bond, MBIA
6.000%, 05/01/02 ............ 310 332
6.000%, 05/01/03 ............ 310 336
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO (continued) (000) (000)
- --------------------------------------------------------------------------------
Howell Public Schools, General
Obligation Bond, FGIC
5.000%, 05/01/08 ............ $1,000 $1,020
Huron School District, General
Obligation Bond
7.250%, 05/01/98 ............ 100 102
Ingham County, Proctor Drain System
Project, General Obligation Bond
7.050%, 02/01/00 ............ 100 103
7.100%, 02/01/01 ............ 180 186
Iron Mountain Finance Authority
General Obligation Bond, AMBAC
5.000%, 05/01/05 ............ 250 259
Johannesburg-Lewiston Area School
District General Obligation Bond,
AMBAC
6.750%, 05/01/02 ............ 280 309
Johannesburg-Lewiston Area School
System General Obligation Bond,
AMBAC
6.750%, 05/01/03 ............ 320 359
6.000%, 05/01/04 ............ 365 399
Kalamazoo Borgess Medical Center,
Ser A, AMBAC
5.000%, 06/01/04 ............ 1,000 1,030
Kalamazoo, City School District,
General Obligation Bond, FGIC
4.550%, 05/01/01 ............ 1,000 1,011
Kalamazoo Water Supply System
Project, Revenue Bond
6.000%, 09/01/07 ............ 425 454
Kalamazoo Water Supply, Revenue
Bond, Pre-refunded @ 101.50 (B)
6.650%, 09/01/99 ............ 100 107
Kent County, Building Authority,
General Obligation Bond
5.000%, 12/01/06 ............ 500 516
5.100%, 12/01/07 ............ 500 518
Kent Hospital Authority Revenue Bond,
Mary Free Bed Project, Ser A
6.250%, 04/01/03 ............ 250 264
Kentwood Public School System,
General Obligation Bond
5.900%, 05/01/04 ............ 750 807
Kentwood Public School System,
General Obligation Bond,
Pre-refunded @ 102 (B)
7.150%, 05/01/99 ............ 200 214
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 1997 Unaudited
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO (continued) (000) (000)
- --------------------------------------------------------------------------------
MICHIGAN -- (CONTINUED)
Lansing Building Authority,
General Obligation Bond
6.900%, 06/01/99 ............ $ 100 $ 105
7.100%, 06/01/02 ............ 100 113
Lansing Finance Authority,
General Obligation Bond
6.100%, 10/01/03 ............ 250 274
Lansing General Obligation Bond,
Pre-refunded @ 102 (B)
7.100%, 01/01/98 ............ 100 105
7.200%, 01/01/98 ............ 125 132
Lincoln School District General
Obligation Bond, FGIC
5.750%, 05/01/09 ............ 900 964
Livonia Municipal Building Authority,
Revenue Bond
5.750%, 06/01/04 ............ 250 266
Livonia Public School District,
General Obligation Bond
5.450%, 05/01/01 ............ 200 208
Livonia Water Supply & Wastwater
System, Revenue Bond, AMBAC
5.200%, 11/01/09 ............ 1,000 1,021
Macomb County Community College,
General Obligation Bond
4.625%, 05/01/99 ............ 835 843
Marquette City Hospital Finance
Authority, Revenue Bond
7.150%, 04/01/98 ............ 100 102
Michigan State University, Ser A
6.125%, 08/15/07 ............ 1,250 1,341
Montague Public School District,
General Obligation Bond, FSA
5.125%, 05/01/06 ............ 300 311
5.125%, 05/01/08 ............ 300 308
Northville Public Schools, General
Obligation Bond, FGIC
5.000%, 05/01/10 ............ 500 504
Oak Park, General Obligation
Bond, ABMAC
5.200%, 05/01/06 ............ 250 261
Oakland County, Acacia Park Drain
District, General Obligation Bond
8.000%, 10/01/00 ............ 110 122
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO (continued) (000) (000)
- --------------------------------------------------------------------------------
Oakland County, Acacia Park Drain
District, General Obligation
Bond, MBIA
8.000%, 10/01/99 ............ $ 125 $ 135
Oakland County, Birmingham Drain
District, General Obligation Bond
7.500%, 10/01/01 ............ 325 365
Oakland County, Birmingham Drain
System, General Obligation Bond,
Ser C
7.500%, 10/01/99 ............ 230 246
7.500%, 10/01/00 ............ 325 357
Oakland County, Bloomfield Drain
District, General Obligation Bond
8.000%, 10/01/98 ............ 200 209
7.500%, 10/01/99 ............ 200 214
7.500%, 10/01/00 ............ 300 329
7.500%, 10/01/01 ............ 275 309
Oakland County, Caddell Drainage
District, General Obligation Bond
6.300%, 11/01/99 ............ 100 104
Oakland County, Economic Development
Authority, Revenue Bond,
Cranbrook Elderly Community
Project
6.375%, 11/01/14 ............ 1,000 1,114
Oakland County, General
Obligation Bond
6.500%, 11/01/05 ............ 500 527
Okemos Public School District,
General Obligation Bond, Ser I
6.300%, 05/01/00 ............ 750 791
Pewamo Westphalia School District,
General Obligation Bond, FGIC
5.000%, 05/01/06 ............ 275 284
Plymouth-Canton Community School
District, General Obligation
Bond, Ser B
6.250%, 05/01/02 ............ 1,400 1,502
Plymouth-Canton Community School
District, General Obligation
Bond
6.200%, 05/01/05 ............ 250 270
Plymouth-Canton Community School
District, General Obligation
Bond,
Ser C
5.900%, 05/01/02 ............ 250 267
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 1997 Unaudited
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO (continued) (000) (000)
- --------------------------------------------------------------------------------
MICHIGAN -- (CONTINUED)
Plymouth-Canton School District
Community, General Obligation
Bond, Ser B
6.350%, 05/01/03 ............ $ 300 $ 322
Pontiac Building Authority, General
Obligation Bond, AMBAC
6.300%, 04/01/99 ............ 120 124
6.400%, 04/01/00 ............ 110 116
6.875%, 04/01/06 ............ 200 218
Redford Township General Obligation
Bond, AMBAC
6.750%, 04/01/06 ............ 200 222
Reed City Public Schools Authority,
General Obligation Bond, AMBAC
5.400%, 05/01/98 ............ 250 253
Riverview Community School District,
General Obligation Bond,
Pre-refunded @ 101.50 (B)
6.400%, 05/01/02 ............ 250 277
Rochester Community School District
Revenue Bond, Pre-refunded @ 101 (B)
7.150%, 05/01/98 ............ 200 207
Rochester Hills General Obligation Bond
5.500%, 11/01/06 ............ 250 260
5.500%, 11/01/07 ............ 250 259
Romeo Community School District,
General Obligation Bond
6.900%, 05/01/01 ............ 100 108
Royal Oak City School District, General
Obligation Bond, Pre-refunded
@ 101.50 (B)
6.500%, 05/01/01 ............ 230 252
Royal Oak Hospital Finance Authority,
Revenue Bond, Pre-refunded @ 102 (B)
7.750%, 01/01/98 ............ 120 130
Royal Oak William Beaumont Hospital
Finance Authority, Revenue Bond
7.300%, 01/01/99 ............ 100 105
Saline Building Authority, General
Obligation Bond, AMBAC
7.000%, 07/01/05 ............ 100 111
South Lyon School District, General
Obligation Bond
6.500%, 05/01/05 ............ 350 377
6.100%, 05/01/00 ............ 100 105
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO (continued) (000) (000)
- --------------------------------------------------------------------------------
South Redford School District General
Obligation Bond, FGIC
4.600%, 05/01/02 ............ $ 500 $ 506
State Building Authority,
Revenue Bond, AMBAC
6.750%, 10/01/07 ............ 245 273
State Building Authority, Ferris
State University, Ser 1,
Pre-refunded @ 101.50 (B)
6.750%, 10/01/00 ............ 250 273
State Building Authority,
Revenue Bond, Ser I
6.400%, 10/01/04 ............ 650 709
6.500%, 10/01/05 ............ 500 546
5.500%, 10/01/07 ............ 1,000 1,076
State Building Authority,
Revenue Bond, Ser I, AMBAC
6.000%, 10/01/02 ............ 300 324
State Building Authority,
Revenue Bond, Ser II
5.800%, 10/01/98 ............ 100 102
5.900%, 10/01/99 ............ 100 104
6.000%, 10/01/00 ............ 100 105
6.500%, 10/01/05 ............ 120 131
State Building Authority,
Revenue Bond, Ser II, AMBAC
6.250%, 10/01/04 ............ 300 326
State Building Authority,
Revenue Bond, Ser II, FSA
6.200%, 10/01/02 ............ 250 273
State Environmental Protection
General Obligation Bond
6.600%, 11/15/97 ............ 250 252
State Hospital Authority Revenue Bond,
Detroit Medical Center, Ser A
6.900%, 08/15/99 ............ 160 167
7.100%, 08/15/01 ............ 165 179
State Housing Development Authority
Revenue Bond, Greenwood
Villa Project, FSA
6.500%, 09/15/07 ............ 160 172
State Hospital Authority Revenue Bond,
Henry Ford Health Center, Ser A
5.100%, 11/15/07 ............ 600 619
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 1997 Unaudited
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO (continued) (000) (000)
- --------------------------------------------------------------------------------
MICHIGAN -- (CONTINUED)
State Hospital Finance Authority,
Revenue Bond, Detroit Medical
Center Project
6.250%, 08/15/13 ............ $ 675 $ 716
State Hospital Finance Authority,
Revenue Bond, Mclaren Group
7.000%, 09/15/98 ............ 100 104
7.100%, 09/15/99 ............ 100 106
7.200%, 09/15/00 ............ 200 218
State Hospital Finance Authority,
Revenue Bond, Mclaren Group,
Ser A
5.000%, 10/15/04 ............ 1,000 1,011
5.200%, 10/15/06 ............ 750 762
State Hospital Finance Authority,
Revenue Bond, Mercy Health Services,
Ser Q, AMBAC
4.450%, 08/15/00 ............ 775 782
State Hospital Finance Authority,
Revenue Bond, Sisters of Mercy
Project
4.900%, 08/15/05 ............ 1,000 1,025
State Hospital Finance Authority,
Revenue Bond, Sparrow Group, MBIA
5.200%, 11/15/07 ............ 480 505
5.300%, 11/15/08 ............ 450 475
5.400%, 11/15/09 ............ 450 475
State Municipal Bond Authority,
Revenue Bond State Revolving Fund
5.500%, 10/01/06 ............ 810 867
5.150%, 10/01/08 ............ 1,000 1,026
State Municipal Building Authority,
Revenue Bond State Revolving
Fund, Ser A
6.000%, 10/01/02 ............ 1,000 1,080
State Municipal Building Authority,
Revenue Bond
6.500%, 05/01/07 ............ 250 278
State Municipal Building Authority,
Revenue Bond, AMBAC
7.200%, 11/01/98 ............ 55 57
State Municipal Building Revenue
Bond, Ser B, FGIC (A)
6.900%, 05/01/99 ............ 100 105
State Oakwood Hospital Group,
Pre-refunded @ 102, FGIC (B)
7.000%, 07/01/00 ............ 500 549
State Power Supply System, MBIA
5.800%, 11/01/05 ............ 400 435
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO (continued) (000) (000)
- --------------------------------------------------------------------------------
State Public Power Agency Belle
River Project, Ser A
5.400%, 01/01/01 ............ $ 250 $ 260
5.200%, 01/01/04 ............ 300 312
State Public Power Agency Campbell
Project Ser A, AMBAC
5.500%, 01/01/06 ............ 500 533
State Public Power Project,
Revenue Bond, Ser A
5.000%, 01/01/03 ............ 500 515
State Sisters Mercy Health System, FSA
5.700%, 02/15/01 ............ 250 262
State Strategic Fund Revenue Bond,
Ford Motor Project, Ser A
7.100%, 02/01/06 ............ 350 410
State St. John Hospital, Ser A, AMBAC
5.650%, 05/15/03 ............ 300 319
State St. John Medical Center, AMBAC
5.000%, 05/15/04 ............ 750 773
State Trunk Line, Revenue Bond, Ser A
5.625%, 10/01/03 ............ 500 531
State Trunk Line, Revenue Bond,
Ser B-2
5.750%, 10/01/04 ............ 350 375
State Underground Storage Tank
Financial Assurance Authority,
Revenue Bond, Ser I, AMBAC
5.000%, 05/01/01 ............ 1,000 1,030
Traverse City Area Public Schools,
General Obligation Bond
7.000%, 05/01/03 ............ 100 111
Traverse City Area Public Schools,
General Obligation Bond,
Pre-refunded @ 101.50 (B)
7.000%, 05/01/01 ............ 200 222
Traverse City Area Public Schools,
General Obligation Bond, MBIA
7.250%, 05/01/05 ............ 950 1,122
Troy City School District,
General Obligation Bond
6.000%, 05/01/07 ............ 250 265
University of Michigan, Revenue Bond
5.800%, 12/01/05 ............ 400 432
University of Michigan, Revenue Bond,
Major Capital Projects
5.300%, 04/01/05 ............ 250 262
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 1997 Unaudited
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO (continued) (000) (000)
- --------------------------------------------------------------------------------
MICHIGAN -- (CONTINUED)
Utica Community Schools,
General Obligation Bond
5.750%, 05/01/07 ............ $ 500 $ 536
Utica Community Schools, Unlimited
General Obligation Bond
5.375%, 05/01/02 ............ 200 209
Walled Lake Cons School District,
Unlimited General Obligation Bond
7.100%, 05/01/03 ............ 100 110
Walled Lake School District, Unlimited
General Obligation Bond, MBIA
5.500%, 05/01/02 ............ 500 526
Warren Building Authority
Pre-refunded @ 102, FSA
8.750%, 11/01/00 ............ 100 116
Warren Woods Public School System
Pre-refunded @ 100.50 (B)
7.200%, 06/01/00 ............ 100 109
Washtenaw County Building Authority,
Pre-refunded @ 102, Ser 1 (B)
7.000%, 04/01/98 ............ 100 104
Washtenaw General Obligation,
Michigan Community College,
Ser A
4.900%, 04/01/06 ............ 1,200 1,227
Wayne County, Building Authority,
General Obligation Bond,
Ser A, MBIA
4.650%, 06/01/02 ............ 500 508
5.625%, 06/01/04 ............ 1,000 1,071
Wayne County, General Obligation
Bond, Detroit Metro Airport, Ser A, MBIA
6.400%, 12/01/01 ............ 200 217
Wayne County, Revenue Bond, Ecorse
Creek Drain Project, AMBAC
7.500%, 11/01/09 ............ 500 519
Western Townships Utility Authority,
General Obligation Bond, FSA
5.900%, 01/01/99 ............ 160 164
Wyandotte Building Authority,
Revenue Bond
7.000%, 01/01/03 ............ 100 113
Wyandotte Electric Authority
Revenue Bond, MBIA
6.250%, 10/01/08 ............ 1,700 1,938
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO (concluded) (000) (000)
- --------------------------------------------------------------------------------
Wyandotte Tax Increment
Finance Authority, MBIA
6.100%, 06/01/02 ............ $ 500 $ 539
-------
Total Michigan .......... 79,848
-------
Total Municipal Bonds
(Cost $76,909) ... 79,848
-------
CASH EQUIVALENTS -- 2.2%
SEI Institutional Tax
Free Portfolio ................ 1,778 1,778
-------
Total Cash Equivalents
(Cost $1,778) ........ 1,778
-------
Total Investments -- 102.4%
(Cost $78,687) ....... 81,626
-------
OTHER ASSETS AND LIABILITIES, NET -- (2.4%) (1,919)
-------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
7,851,599 outstanding shares
of beneficial interest ...... 76,719
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
439 outstanding shares of
beneficial interest ......... 4
Accumulated Net Realized Gain
on Investments .............. 45
Net Unrealized Appreciation
on Investments .............. 2,939
-------
Total Net Assets -- 100.0% ...... $79,707
=======
Net Asset Value, Offering and Redemption
Price Per Share -- Class I .. $10.15
=======
Net Asset Value and Redemption Price
Per Share -- Class A ........ $10.15
=======
Maximum Offering Price Per Share --
Class A ($10.15 / 95.5%) .... $10.63
=======
- --------------------------------------------------------------------------------
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Investors Assurance
Ser -- Series
(A) Security is held in connection with a letter of credit or standby bond
purchase agreement issued by a major commercial bank or other financial
institution.
(B) Pre-refunded security. The maturity date shown is the pre-refunded date.
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 1997 Unaudited
Face
PRIME OBLIGATION MONEY Amount Value
MARKET PORTFOLIO (000) (000)
- --------------------------------------------------------------------------------
COMMERCIAL PAPER -- 57.2%
BANKING -- 4.5%
Government Development
Bank of Puerto Rico
5.790%, 08/19/97 ............ $ 5,200 $ 5,185
Svenska Handels New York
5.701%, 09/30/97 ............ 3,000 2,972
-------
Total Banking ........... 8,157
-------
FINANCIAL SERVICES -- 39.6%
Aesop Funding
6.084%, 08/01/97 ............ 5,000 5,000
American Express Credit
5.963%, 08/01/97 ............ 5,000 5,000
Apreco
5.636%, 08/21/97 ............ 2,000 1,994
Asset Securitization
5.715%, 08/06/97 ............ 3,000 2,998
Associates Corporation
of North America
5.764%, 08/25/97 ............ 5,000 4,981
Center Square Funding
5.652%, 08/15/97 ............ 4,880 4,870
Centric Funding
5.652%, 08/15/97 ............ 2,000 1,996
5.782%, 10/07/97 ............ 3,250 3,216
Enterprise Funding
5.629%, 08/27/97 ............ 5,000 4,980
Eureka Securities
5.676%, 08/04/97 ............ 5,000 4,998
Greenwich Funding
5.618%, 08/15/97 ............ 5,200 5,189
Island Finance
5.661%, 08/11/97 ............ 5,000 4,992
Kitty Hawk Funding
5.822%, 09/02/97 ............ 5,000 4,975
Matterhorn Capital
5.655%, 08/04/97 ............ 5,050 5,048
Mont Blanc Capital
5.654%, 08/11/97 ............ 2,500 2,496
Ranger Funding
5.638%, 08/06/97 ............ 6,013 6,008
Rose Funding
5.736%, 08/29/97 ............ 3,000 2,987
-------
Total Financial Services 71,728
-------
Face
PRIME OBLIGATION MONEY Amount Value
MARKET PORTFOLIO (continued) (000) (000)
- --------------------------------------------------------------------------------
INDUSTRIAL -- 13.1%
Aon
5.756%, 08/01/97 ............ $ 1,463 $ 1,463
Chevron Transport
5.908%, 12/08/97 ............ 5,000 4,899
Lockheed Martin
5.817%, 09/11/97 ............ 1,700 1,689
New York Times
5.932%, 08/01/97 ............ 5,200 5,200
Societe Generale
5.853%, 12/10/97 ............ 3,000 2,939
Toshiba America
5.746%, 08/22/97 ............ 2,500 2,492
Total International
5.699%, 10/20/97 ............ 5,000 4,938
--------
Total Industrial ........ 23,620
--------
Total Commercial Paper
(Cost $103,505) ...... 103,505
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 5.0%
FNMA (A)
5.440%, 08/25/97 ............ 9,000 9,000
--------
Total U.S. Government Agency
Obligations
(Cost $9,000) ........ 9,000
--------
FLOATING RATE INSTRUMENTS -- 3.3%
Peoples Security Life (A)
6.063%, 08/01/97 ............ 3,000 3,000
Travelers Insurance (A)
5.925%, 10/01/97 ............ 3,000 3,000
--------
Total Floating Rate Instruments
(Cost $6,000) ........ 6,000
--------
CERTIFICATES OF DEPOSIT -- 2.8%
Regions Bank
5.650%, 10/31/97 ............ 5,000 5,000
--------
Total Certificates Of Deposit
(Cost $5,000) ........ 5,000
--------
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 1997 Unaudited
Face
PRIME OBLIGATION MONEY Amount Value
MARKET PORTFOLIO (continued) (000) (000)
- --------------------------------------------------------------------------------
CORPORATE BONDS -- 2.8%
Bank of America (A)
5.650%, 08/01/97 ............ $ 5,000 $ 4,998
--------
Total Corporate Bonds
(Cost $4,998) ........ 4,998
--------
BANK NOTES -- 9.1%
Bank One, Columbus (A)
5.546%, 09/24/97 ............ 6,000 5,997
BankBoston
5.650%, 10/08/97 ............ 3,000 3,000
Key Bank of Utah (A)
5.780%, 08/01/97 ............ 5,000 4,999
Morgan Guaranty, New York
5.955%, 06/22/98 ............ 2,500 2,499
--------
Total Bank Notes
(Cost $16,495) ....... 16,495
--------
REPURCHASE AGREEMENTS -- 18.4%
Lehman Government Securities 5.76%,
dated 07/31/97, matures 08/01/97,
repurchase price $8,308,329 (collateralized by
U.S. Treasury STRIPS, par value
$13,265,000, 11/15/04; market
value $8,593,498) ........... 8,307 8,307
UBS Government Securities (B)
5.63%, dated 07/31/97, matures
08/01/97, repurchase price $25,003,910
(collateralized by various GNMA
obligations, total par value
$33,003,973, 8.00%,
09/15/11-09/15/26 total
market value $25,502,340) ... 25,000 25,000
--------
Total Repurchase Agreements
(Cost $33,307) ....... 33,307
--------
Total Investments -- 98.6%
(Cost $178,305) ...... 178,305
--------
OTHER ASSETS AND LIABILITIES, NET -- 1.4% 2,585
--------
PRIME OBLIGATION MONEY Value
MARKET PORTFOLIO (concluded) (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
86,072,340 outstanding shares
of beneficial interest ...... $ 86,072
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
94,833,473 outstanding shares
of beneficial interest ...... 94,833
Accumulated Net Realized Loss
on Investments .............. (15)
--------
Total Net Assets -- 100.0% ...... $180,890
========
Net Asset Value, Offering and Redemption
Price Per Share -- Class I .. $1.00
========
Net Asset Value, Offering and Redemption
Price Per Share -- Class A .. $1.00
========
- --------------------------------------------------------------------------------
FNMA -- Federal National Mortgage Association
GNMA -- Government National Mortgage Association
STRIPS -- Separately Traded Registered Interest and
Principal Securities
(A) Variable Rate Security -- The rate reported in the Statement
of Net Assets is the rate in effect on July 31, 1997. The date
shown is the next reset date.
(B) Tri-Party Repurchase Agreement
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS (000) GOLDEN OAK FAMILY OF FUNDS
For the Six Months Ended July 31, 1997 (except where noted) Unaudited
INTERMEDIATE-TERM MICHIGAN PRIME OBLIGATION
GROWTH VALUE INCOME TAX FREE BOND MONEY MARKET
PORTFOLIO PORTFOLIO (2) PORTFOLIO PORTFOLIO (2) PORTFOLIO
- --------------------------------------------------------------------------------------------------------------------------------
Investment Income:
<S> <C> <C> <C> <C> <C>
Dividend Income ..................... $ 135 $ 49 $ -- $ -- $ --
Interest Income ..................... 57 2 3,805 429 4,549
- --------------------------------------------------------------------------------------------------------------------------------
Total Investment Income ........... 192 51 3,805 429 4,549
- --------------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees ............ 127 21 299 42 303
Less: Waiver of Investment
Advisory Fees ..................... (1) (2) (87) (17) (209)
Administration Fees ................. 34 6 120 17 162
Transfer Agent Fees ................. 16 3 21 4 25
Custodian Fees ...................... 2 -- 7 1 9
Professional Fees ................... 4 1 13 2 18
Registration Fees ................... 1 2 4 4 2
Distribution Fees(1) ................ -- -- -- -- 94
Trustee Fees ........................ 2 -- 4 -- 5
Printing Expenses ................... 3 -- 6 1 7
Other Expenses ...................... 1 -- 2 -- 2
- --------------------------------------------------------------------------------------------------------------------------------
Total Expenses, Net of Waivers .... 189 31 389 54 418
- --------------------------------------------------------------------------------------------------------------------------------
Net Investment Income ............... 3 20 3,416 375 4,131
- --------------------------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss)
on Securities Sold ................ 2,560 597 (588) 45 2
Net Change in Unrealized
Appreciation on Investments ....... 4,652 1,420 2,050 1,135 --
- --------------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized
Gain on Investments ............... 7,212 2,017 1,462 1,180 2
- --------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Resulting
From Operations ................... $7,215 $2,037 $4,878 $1,555 $4,133
================================================================================================================================
<FN>
Amounts designated as "--" are either $0 or have been rounded to $0.
(1) All distribution fees are incurred in the Class A Shares.
(2) Commenced operations on June 23, 1997. Reflects operations for the period June 23, 1997 to July 31, 1997.
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
17
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (000) GOLDEN OAK FAMILY OF FUNDS
For the Period Ended July 31, 1997 (Unaudited) and the Year Ended January 31, 1997 Unaudited
GROWTH VALUE
PORTFOLIO PORTFOLIO(1)
-------------------------- ------------
2/1/97 TO 2/1/96 TO 6/23/97 TO
7/31/97 1/31/97 7/31/97
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
<S> <C> <C> <C>
Net Investment Income ............................................................ $ 3 $ 11 $ 20
Net Realized Gain (Loss) on Securities Sold ...................................... 2,560 2,230 597
Net Change in Unrealized Appreciation (Depreciation) on Investments .............. 4,652 3,815 1,420
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Investment Operations .................... 7,215 6,056 2,037
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions:
Net Investment Income
Class I ........................................................................ -- (15) --
Class A ........................................................................ -- -- --
Realized Net Gains
Class I ........................................................................ -- (82) --
Class A ........................................................................ -- (1) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions ................................................................ -- (98) --
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Class I:
Proceeds from Shares Issued ...................................................... 3,850 8,771 1,006
Value from Shares Issued in Connection with Acquisition of Common Trust Fund Assets -- -- 26,599
Reinvestment of Cash Distributions ............................................... -- -- --
Cost of Shares Redeemed .......................................................... (3,823) (6,628) (1,428)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class I Share Transactions ................................................... 27 2,143 26,177
- ------------------------------------------------------------------------------------------------------------------------------------
Class A:
Proceeds from Shares Issued ...................................................... 14 150 --
Reinvestment of Cash Distributions ............................................... -- 1 --
Cost of Shares Redeemed .......................................................... (11) (21) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class A Share Transactions ................................................... 3 130 --
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Capital Share Transactions .................. 30 2,273 26,177
- ------------------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets ............................................ 7,245 8,231 28,214
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period .............................................................. 33,199 24,968 --
- ------------------------------------------------------------------------------------------------------------------------------------
End of Period .................................................................... $40,444 $33,199 $28,214
====================================================================================================================================
Shares Issued and Redeemed
Class I:
Shares Issued .................................................................... 303 790 97
Shares Issued in Connection with Acquisition of Common Trust Fund Assets ......... -- -- 2,660
Shares Issued in Lieu of Cash Distributions ...................................... -- -- --
Shares Redeemed .................................................................. (281) (601) (140)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class I Share Transactions ................................................... 22 189 2,617
- ------------------------------------------------------------------------------------------------------------------------------------
Class A:
Shares Issued .................................................................... 1 1 --
Shares Issued in Lieu of Cash Distributions ...................................... -- -- --
Shares Redeemed .................................................................. (1) (2) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class A Share Transactions ................................................... -- (1) --
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Capital Shares .............................................. 22 188 2,617
====================================================================================================================================
INTERMEDIATE-TERM MICHIGAN
INCOME TAX FREE BOND
PORTFOLIO PORTFOLIO(1)
----------------------- ---------------
2/1/97 TO 2/1/96 TO 6/23/97 TO
7/31/97 1/31/97 7/31/97
- ----------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
<S> <C> <C> <C>
Net Investment Income ............................................................ $ 3,416 $ 5,917 $ 375
Net Realized Gain (Loss) on Securities Sold ...................................... (588) (45) 45
Net Change in Unrealized Appreciation (Depreciation) on Investments .............. 2,050 (3,128) 1,135
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Investment Operations .................... 4,878 2,744 1,555
- ----------------------------------------------------------------------------------------------------------------------------------
Distributions:
Net Investment Income
Class I ........................................................................ (3,414) (5,911) (375)
Class A ........................................................................ (2) (6) --
Realized Net Gains
Class I ........................................................................ -- -- --
Class A ........................................................................ -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions ................................................................ (3,416) (5,917) (375)
- ----------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Class I:
Proceeds from Shares Issued ...................................................... 15,850 27,079 3,653
Value from Shares Issued in Connection with Acquisition of Common Trust Fund Assets -- -- 77,580
Reinvestment of Cash Distributions ............................................... -- -- --
Cost of Shares Redeemed .......................................................... (11,435) (11,494) (2,710)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Class I Share Transactions ................................................... 4,415 15,585 78,523
- ----------------------------------------------------------------------------------------------------------------------------------
Class A:
Proceeds from Shares Issued ...................................................... 3 15 4
Reinvestment of Cash Distributions ............................................... 2 5 --
Cost of Shares Redeemed .......................................................... (28) (139) --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Class A Share Transactions ................................................... (23) (119) 4
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Capital Share Transactions .................. 4,392 15,466 78,527
- ----------------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets ............................................ 5,854 12,293 79,707
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period .............................................................. 116,773 104,480 --
- ----------------------------------------------------------------------------------------------------------------------------------
End of Period .................................................................... $122,627 $116,773 $79,707
==================================================================================================================================
Shares Issued and Redeemed
Class I:
Shares Issued .................................................................... 1,615 2,757 363
Shares Issued in Connection with Acquisition of Common Trust Fund Assets ......... -- -- 7,758
Shares Issued in Lieu of Cash Distributions ...................................... -- -- --
Shares Redeemed .................................................................. (1,165) (1,162) (269)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Class I Share Transactions ................................................... 450 1,595 7,852
- ----------------------------------------------------------------------------------------------------------------------------------
Class A:
Shares Issued .................................................................... -- 1 --
Shares Issued in Lieu of Cash Distributions ...................................... -- -- --
Shares Redeemed .................................................................. (3) (14) --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Class A Share Transactions ................................................... (3) (13) --
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Capital Shares .............................................. 447 1,582 7,852
==================================================================================================================================
PRIME OBLIGATION
MONEY MARKET
PORTFOLIO
-----------------------
2/1/97 TO 2/1/96 TO
7/31/97 1/31/97
- ------------------------------------------------------------------------------------------------------------------
Investment Operations:
<S> <C> <C>
Net Investment Income ............................................................ $ 4,131 $ 8,467
Net Realized Gain (Loss) on Securities Sold ...................................... 2 (11)
Net Change in Unrealized Appreciation (Depreciation) on Investments .............. -- --
- ------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Investment Operations .................... 4,133 8,456
- ------------------------------------------------------------------------------------------------------------------
Distributions:
Net Investment Income
Class I ........................................................................ (2,252) (5,202)
Class A ........................................................................ (1,879) (3,265)
Realized Net Gains
Class I ........................................................................ -- --
Class A ........................................................................ -- --
- ------------------------------------------------------------------------------------------------------------------
Total Distributions ................................................................ (4,131) (8,467)
- ------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Class I:
Proceeds from Shares Issued ...................................................... 74,086 202,332
Value from Shares Issued in Connection with Acquisition of Common Trust Fund Assets -- --
Reinvestment of Cash Distributions ............................................... 3 6
Cost of Shares Redeemed .......................................................... (82,537) (215,233)
- ------------------------------------------------------------------------------------------------------------------
Total Class I Share Transactions ................................................... (8,448) (12,895)
- ------------------------------------------------------------------------------------------------------------------
Class A:
Proceeds from Shares Issued ...................................................... 208,858 498,815
Reinvestment of Cash Distributions ............................................... 134 227
Cost of Shares Redeemed .......................................................... (185,850) (502,644)
- ------------------------------------------------------------------------------------------------------------------
Total Class A Share Transactions ................................................... 23,142 (3,602)
- ------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Capital Share Transactions .................. 14,694 (16,497)
- ------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets ............................................ 14,696 (16,508)
- ------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period .............................................................. 166,194 182,702
- ------------------------------------------------------------------------------------------------------------------
End of Period .................................................................... $180,890 $166,194
==================================================================================================================
Shares Issued and Redeemed
Class I:
Shares Issued .................................................................... 74,086 202,332
Shares Issued in Connection with Acquisition of Common Trust Fund Assets ......... -- --
Shares Issued in Lieu of Cash Distributions ...................................... 3 6
Shares Redeemed .................................................................. (82,537) (215,233)
- ------------------------------------------------------------------------------------------------------------------
Total Class I Share Transactions ................................................... (8,448) (12,895)
- ------------------------------------------------------------------------------------------------------------------
Class A:
Shares Issued .................................................................... 208,858 498,815
Shares Issued in Lieu of Cash Distributions ...................................... 134 227
Shares Redeemed .................................................................. (185,850) (502,644)
- ------------------------------------------------------------------------------------------------------------------
Total Class A Share Transactions ................................................... 23,142 (3,602)
- ------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Capital Shares .............................................. 14,694 (16,497)
==================================================================================================================
<FN>
Amounts designated as "--" are either $0 or have been rounded to $0.
(1) Commenced operations on June 23, 1997
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
18 & 19
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS GOLDEN OAK FAMILY OF FUNDS
For a Share Outstanding Throughout the Period
For the Period Ended July 31,1997 (Unaudited) and the Periods Ended January 31,
NET REALIZED DISTRIBUTIONS NET NET
ASSET AND -------------------- ASSET ASSETS RATIO OF
VALUE NET UNREALIZED NET NET VALUE END EXPENSES
BEGINNING INVESTMENT GAIN (LOSS) INVESTMENT REALIZED END TOTAL OF PERIOD TO AVERAGE
OF PERIOD INCOME ON INVESTMENTS INCOME GAIN OF PERIOD RETURN+ (000) NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------
GROWTH PORTFOLIO CLASS I
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1997** $12.66 -- 2.63 -- -- $15.29 20.77% $ 40,166 1.10%
1997 10.26 -- 2.44 (0.01) (0.03) 12.66 23.79 32,973 1.10
1996 10.00 0.07 1.74 (0.07) (1.48) 10.26 18.81 24,775 1.10
1995 10.82 0.08 (0.64) (0.08) (0.18) 10.00 (5.24) 32,931 1.10
1994(1) 10.00 0.08 0.82 (0.08) -- 10.82 9.08 24,955 1.10
GROWTH PORTFOLIO CLASS A
1997** $12.57 (0.01) 2.60 -- -- $15.16 20.60% $ 278 1.35%
1997 10.20 (0.03) 2.43 -- (0.03) 12.57 23.56 226 1.35
1996 9.96 0.04 1.72 (0.04) (1.48) 10.20 18.43 193 1.35
1995 10.81 0.05 (0.67) (0.05) (0.18) 9.96 (5.76) 125 1.35
1994(3) 9.54 0.02 1.27 (0.02) -- 10.81 22.00* 173 1.35*
VALUE PORTFOLIO CLASS I
1997**(4) $10.00 0.01 0.77 -- -- $10.78 7.80% $ 28,214 1.10%
VALUE PORTFOLIO CLASS A
1997**(4) $10.00 0.01 0.77 -- -- $10.78 7.80% $ -- 1.35%
INTERMEDIATE-TERM INCOME PORTFOLIO CLASS I
1997** $ 9.83 0.28 0.12 (0.28) -- $ 9.95 4.12% $122,565 0.65%
1997 10.15 0.54 (0.32) (0.54) -- 9.83 2.31 116,689 0.65
1996 9.52 0.56 0.63 (0.56) -- 10.15 12.83 104,270 0.65
1995 10.19 0.50 (0.67) (0.50) -- 9.52 (1.61) 80,064 0.65
1994(1) 10.00 0.46 0.23 (0.46) (0.04) 10.19 6.99 64,329 0.65
INTERMEDIATE-TERM INCOME PORTFOLIO CLASS A
1997** $ 9.83 0.26 0.11 (0.26) -- $ 9.94 3.87% $ 62 0.90%
1997 10.15 0.52 (0.32) (0.52) -- 9.83 2.05 84 0.90
1996 9.52 0.54 0.63 (0.54) -- 10.15 12.54 210 0.90
1995 10.19 0.48 (0.67) (0.48) -- 9.52 (1.85) 314 0.90
1994(3) 10.12 0.31 0.11 (0.31) (0.04) 10.19 6.72* 365 0.90*
MICHIGAN TAX FREE BOND PORTFOLIO CLASS I
1997**(4) $10.00 0.05 0.15 (0.05) -- $10.15 1.88% $ 79,703 0.65%
MICHIGAN TAX FREE BOND PORTFOLIO CLASS A
1997**(4) $10.00 0.05 0.15 (0.05) -- $10.15 2.04% $ 4 0.90%
PRIME OBLIGATION MONEY MARKET PORTFOLIO CLASS I
1997** $ 1.00 0.03 -- (0.03) -- $ 1.00 2.62% $ 86,061 0.40%
1997 1.00 0.05 -- (0.05) -- 1.00 5.21 94,508 0.40
1996 1.00 0.06 -- (0.06) -- 1.00 5.74 107,409 0.40
1995 1.00 0.04 -- (0.04) -- 1.00 4.21 109,076 0.40
1994(1) 1.00 0.03 -- (0.03) -- 1.00 2.87 117,188 0.40
PRIME OBLIGATION MONEY MARKET PORTFOLIO CLASS A
1997** $ 1.00 0.02 -- (0.02) -- $ 1.00 2.49% $ 94,829 0.65%
1997 1.00 0.05 -- (0.05) -- 1.00 4.95 71,686 0.65
1996 1.00 0.05 -- (0.05) -- 1.00 5.47 75,293 0.65
1995 1.00 0.04 -- (0.04) -- 1.00 3.95 21,018 0.65
1994(2) 1.00 -- -- -- -- 1.00 2.90* 104 0.65*
=============================================================================================================================
RATIO OF RATIO OF
RATIO OF EXPENSES NET INCOME
NET TO AVERAGE TO AVERAGE
INCOME NET ASSETS NET ASSETS PORTFOLIO AVERAGE
TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER COMMISSION
NET ASSETS WAIVERS) WAIVERS) RATE RATE++
- ----------------------------------------------------------------------------------
GROWTH PORTFOLIO CLASS I
<S> <C> <C> <C> <C> <C> <C>
1997** 0.02% 1.11% 0.01% 62.63% $0.0600
1997 0.04 1.11 0.03 130.69 0.0600
1996 0.62 1.17 0.55 189.48 N/A
1995 0.74 1.24 0.60 84.00 N/A
1994(1) 0.77 1.21 0.66 68.91 N/A
GROWTH PORTFOLIO CLASS A
1997** (0.23)% 1.36% (0.24)% 62.63% $0.0600
1997 (0.20) 1.36 (0.21) 130.69 0.0600
1996 0.30 1.42 0.23 189.48 N/A
1995 0.49 1.49 0.35 84.00 N/A
1994(3) 0.33* 1.45* 0.23* 68.91 N/A
VALUE PORTFOLIO CLASS I
1997**(4) 0.68% 1.16% 0.62% 2.96% $0.0353
VALUE PORTFOLIO CLASS A
1997**(4) 0.64% 1.35% 0.64% 2.96% $0.0353
INTERMEDIATE-TERM INCOME PORTFOLIO CLASS I
1997** 5.70% 0.79% 5.56% 39.96% N/A
1997 5.48 0.80 5.33 34.67 N/A
1996 5.68 0.84 5.49 121.47 N/A
1995 5.21 0.86 5.00 141.51 N/A
1994(1) 4.47 0.83 4.29 71.73 N/A
INTERMEDIATE-TERM INCOME PORTFOLIO CLASS A
1997** 5.43% 1.04% 5.29% 39.96% N/A
1997 5.20 1.05 5.05 34.67 N/A
1996 5.49 1.09 5.30 121.47 N/A
1995 4.96 1.11 4.75 141.51 N/A
1994(3) 4.27* 1.08* 4.09* 71.73 N/A
MICHIGAN TAX FREE BOND PORTFOLIO CLASS I
1997**(4) 4.47% 0.85% 4.27% 3.73% N/A
MICHIGAN TAX FREE BOND PORTFOLIO CLASS A
1997**(4) 4.51% 1.07% 4.34% 3.73% N/A
PRIME OBLIGATION MONEY MARKET PORTFOLIO CLASS I
1997** 5.22% 0.66% 4.96% N/A N/A
1997 5.08 0.68 4.80 N/A N/A
1996 5.60 0.70 5.30 N/A N/A
1995 4.20 0.68 3.92 N/A N/A
1994(1) 2.83 0.67 2.56 N/A N/A
PRIME OBLIGATION MONEY MARKET PORTFOLIO CLASS A
1997** 4.98% 0.91% 4.72% N/A N/A
1997 4.83 0.93 4.55 N/A N/A
1996 5.31 0.95 5.01 N/A N/A
1995 3.95 0.93 3.67 N/A N/A
1994(2) 2.68* 0.93* 2.40* N/A N/A
================================================================================
<FN>
Amounts designated as "--" are either $0 or have been rounded to $0.
* Annualized
** For the period ended July 31, 1997 (Unaudited). All ratios for the period
have been annualized. Total returns are for the period indicated and have
not been annualized.
+ Total return does not reflect the sales charge on Class A shares.
++ Average commission rate paid per share for security purchases and sales
during the period. Presentation of the rate is only required for fiscal
years beginning after September 1, 1995.
(1) Commenced operations February 1, 1993.
(2) Commenced operations January 20, 1994.
(3) Commenced operations June 18, 1993.
(4) Commenced operations June 23, 1997.
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS GOLDEN OAK FAMILY OF FUNDS
July 31, 1997 Unaudited
1. Organization:
THE GOLDEN OAK FAMILY OF FUNDS are separate investment portfolios of The Arbor
Fund (the "Trust"). The Trust was organized as a Massachusetts business trust
under a Declaration of Trust dated July 24, 1992 and had no operations through
February 1, 1993 other than those related to organizational matters and the sale
of initial shares to SEI Fund Resources (the "Administrator") on October 9,
1992. SEI Investments Management Corporation, a wholly-owned subsidiary of SEI
Investments Company, is the owner of all beneficial interest in the
Administrator. The Trust is registered under the Investment Company Act of 1940,
as amended (the "1940 Act") as an open-end management company. These financial
statements relate to the Trust's Golden Oak Growth Portfolio, Golden Oak Value
Portfolio, ("the Equity Portfolios"), Golden Oak Intermediate-Term Income
Portfolio, Golden Oak Michigan Tax Free Bond Portfolio, ("the Bond Portfolios"),
and Golden Oak Prime Obligation Money Market Portfolio ("the Money Market
Portfolio"), (together, the "Portfolios"). On August 11, 1997 the Board of
Directors for the Arbor Fund approved a name change for the Class A shares of
each Portfolio to the Class I (Institutional) shares, and the Class B shares to
the Class A (Retail) shares. The Portfolios' prospectus provides a description
of each Portfolio's investment objectives, policies and strategies. The assets
of each Portfolio are segregated, and a shareholder's interest is limited to the
Portfolio in which shares are held.
2. Significant Accounting Policies:
The following is a summary of the significant accounting policies followed by
the Portfolios.
SECURITY VALUATION -- Investments in equity securities which are traded on a
national securities exchange (or reported on the NASDAQ national market system)
are stated at the last quoted sales price if readily available for such equity
securities on each business day; other equity securities traded in the
over-the-counter market and listed equity securities for which no sale was
reported on that date are stated at the last quoted bid price. Debt obligations
exceeding sixty days to maturity for which market quotations are readily
available are valued at the most recently quoted bid price. Debt obligations
with sixty days or less remaining until maturity are valued at their amortized
cost. Restricted securities for which quotations are not readily available are
valued at fair value using methods determined in good faith under general
trustee supervision.
Investment securities held by the Money Market Portfolio are stated at amortized
cost which approximates market value. Under the amortized cost method, any
discount or premium is amortized ratably to the maturity of the security and is
included in interest income.
FEDERAL INCOME TAXES -- It is each Portfolio's intention to continue to qualify
as a regulated investment company for Federal income tax purposes by complying
with the appropriate provisions of the Internal Revenue Code of 1986, as
amended. Accordingly, no provision for Federal income taxes is required in the
financial statements.
SECURITY TRANSACTIONS AND RELATED INCOME -- Security transactions are accounted
for on the date the security is purchased or sold (trade date). Dividend income
is recognized on the ex-dividend date, and interest income is accrued as earned.
Costs used in determining realized gains and losses on sales of investment
securities are those of the specific securities sold. Purchase discounts and
premiums on securities held by the Bond Portfolios are accreted and amortized to
maturity using the effective interest method.
REPURCHASE AGREEMENTS -- The Portfolios invest in tri-party repurchase
agreements. It is the Trust's policy that securities held as collateral for
tri-party repurchase agreements are maintained in a
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 1997 Unaudited
segregated account by the broker's custodian bank until maturity of the
repurchase agreement. Provisions of the repurchase agreements require that the
market value of the collateral, including accrued interest thereon, is
sufficient in the event of default of the counterparty.
If the counterparty defaults and the value of the collateral declines, or if the
counterparty enters an insolvency proceeding, realization and/or retention of
the collateral by the Portfolios may be delayed or limited.
NET ASSET VALUE PER SHARE -- The net asset value per share of each Portfolio is
calculated each business day. In general, it is computed by dividing the assets
of each Portfolio, less its liabilities, by the number of outstanding shares of
the Portfolio.
CLASSES OF SHARES -- Class specific expenses are borne by that class. Income,
expenses and realized and unrealized gains and losses are allocated to the
respective classes on the basis of their relative daily net assets.
EXPENSES -- Expenses that are directly related to one of the Portfolios are
charged directly to that Portfolio. Other operating expenses of the Trust are
prorated to the Portfolios on the basis of relative net assets. Class A bears a
class specific 12b-1 fee.
OTHER -- Distributions from net investment income are declared and paid
quarterly to Shareholders of the Equity Portfolios. Distributions from net
investment income for the Money Market Portfolio and the Bond Portfolios are
declared daily and paid to Shareholders on a monthly basis. Any net realized
capital gains on sales of securities are distributed to Shareholders at least
annually.
3. Administration and Distribution Agreements:
The Trust and the Administrator have entered into an Administration Agreement
(the "Administration Agreement"). Under terms of the Administration Agreement,
the Administrator is entitled to a fee that is calculated daily and paid monthly
at an annual rate of .20% of the average daily net assets of each of the
Portfolios. There is a minimum annual administration fee of $100,000 for each of
the Golden Oak Michigan Tax Free Bond Portfolio and the Golden Oak Value
Portfolio and any other new Golden Oak portfolios which the Trust may register.
The Administrator serves as the shareholder servicing agent for the Portfolios.
Compensation for this service is paid under the Administration Agreement.
The Trust and SEI Investments Distribution Co. (the "Distributor"), a
wholly-owned subsidiary of SEI Investments Company, have entered into a
Distribution Agreement (the "Distribution Agreement"). The Distributor receives
no fees for its distribution services under the Distribution Agreement. The
Trustees have adopted a Distribution Plan pursuant to Rule 12b-1 of the 1940 Act
(the "Plan") on behalf of the Class A shares. The Plan provides for payment to
the Distributor at an annual rate of .25% of the average daily net assets for
the Class A shares of each Portfolio.
4. Investment Advisory Agreement:
The Trust has entered into an Investment Advisory Agreement with Citizens Bank
(the "Adviser") dated January 28, 1993 under which the Adviser receives an
annual fee equal to .34% of the average daily net assets of the Growth
Portfolio, .29% of the average daily net assets of the Value Portfolio, .50% of
the average daily net assets of the Bond Portfolios and .225% of the average
daily net assets of the Money Market Portfolio. The Adviser has voluntarily
agreed to waive all or a portion of its fees (and to reimburse each Portfolio's
expenses) in order to limit operating expenses of the Class I and Class A shares
(exclusive of distribution expenses) to not more than 1.10% of the average daily
net assets of the Equity Portfolios, .65% of the average daily net
22
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 1997 Unaudited
assets of the Bond Portfolios and .40% of the average daily net assets of the
Money Market Portfolio. Fee waivers and expense reimbursements are voluntary and
may be terminated at any time.
Wellington Management Company LLP serves as the investment sub-adviser for the
Money Market Portfolio pursuant to a sub-advisory agreement dated January 28,
1993 with the Trust and the Adviser and receives an annual fee, computed daily
and paid monthly, equal to .075% of the average daily net assets of the
Portfolio.
Nicholas-Applegate Capital Management serves as the investment sub-adviser for
the Growth Portfolio pursuant to a sub-advisory agreement dated August 31, 1995
with the Trust and the Adviser and receives an annual fee, computed daily and
paid monthly, equal to .40% of the average daily net assets of the Portfolio.
Systematic Financial Management, L.P. serves as the investment sub-adviser for
the Value Portfolio pursuant to a sub-advisory agreement dated June 23, 1997
with the Trust and the Adviser and receives an annual fee, computed daily and
paid monthly, equal to .45% of the first $50 million, .35% of the next $50
million, and .40% of any amount above $100 million of the average daily net
assets of the Portfolio.
5. Organizational Costs and Transactions with
Affiliates:
Organizational costs have been capitalized by the Trust and are being amortized
over sixty months beginning with the commencement of operations. In the event
any of the initial shares of the Trust are redeemed by any holder thereof during
the period that the Trust is amortizing its organizational costs, the redemption
proceeds payable to the holder thereof by the Trust will be reduced by the
unamortized organizational costs in the same ratio as the number of initial
shares being redeemed bears to the number of initial shares outstanding at the
time of redemption.
Certain officers and a trustee of the Trust are also officers of the
Administrator and/or Distributor. Such officers and trustee are not compensated
by the Trust for serving in their respective roles.
6. Investment Transactions:
The cost of security purchases and the proceeds from the sale of securities,
other than short-term investments during the period ended July 31, 1997, were as
follows:
INTERMEDIATE- MICHIGAN
TERM TAX-FREE
GROWTH VALUE INCOME BOND
(000) (000) (000) (000)
- ----------------------------------------------------------
Purchases:
U.S. Government $ -- $ -- $30,538 $ --
Other ......... 20,878 795 18,991 8,221
Sales:
U.S. Government $ -- $ -- $31,834 $ --
Other ......... 20,481 1,091 10,651 2,824
At July 31, 1997, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes were not materially
different from amounts for financial reporting purposes. The aggregate gross
unrealized appreciation and depreciation on investment securities at July 31,
1997 for the Equity and Bond Portfolios are as follows:
INTERMEDIATE- MICHIGAN
TERM TAX-FREE
GROWTH VALUE INCOME BOND
(000) (000) (000) (000)
- ---------------------------------------------------------
Aggregate Gross
Unrealized
Appreciation $11,372 $14,162 $1,454 $2,953
Aggregate Gross
Unrealized
Depreciation (16) (25) (125) (14)
------- ------- ------ ------
Net Unrealized
Appreciation $11,356 $14,137 $1,329 $2,939
======= ======= ====== ======
23
<PAGE>
NOTES TO FINANCIAL STATEMENTS (concluded) GOLDEN OAK FAMILY OF FUNDS
July 31, 1997 Unaudited
7. Concentration of Credit Risk:
The Money Market Portfolio invests primarily in money market instruments
maturing in 397 days or less whose ratings are within the two highest ratings
categories assigned by a nationally recognized statistical rating organization
or, if not rated, are believed by the Sub-Adviser to be of comparable quality.
The Bond Portfolios invest primarily in marketable debt instruments. The market
value of these investments will change in response to interest rate changes and
other factors. During periods of falling interest rates, the values of debt
securities generally rise. Conversely, during periods of rising interest rates
the values of such securities generally decline. The ability of the issuers of
the securities held by these Portfolios to meet their obligations may be
affected by economic and political developments in a specific industry, state
or region. Changes by recognized rating organizations in the ratings of any debt
security and in the ability of an issuer to make payments of interest and
principal may also affect the value of these investments.
8. Common Trust Fund Conversions:
On June 23, 1997, certain Common Trust Funds of Citizens Bank and its affiliates
were converted into the Golden Oak Family of Funds. The Funds that were involved
in the conversion were as follows:
COMMON TRUST FUND GOLDEN OAK PORTFOLIO
- ----------------------------------------------------
Tax Exempt Bond Fund Michigan Tax Free Bond
Portfolio
Value Equity Fund Value Portfolio
The assets which consisted of securities and related receivables, were converted
on a tax-free basis. The number of shares issued for each Fund and the net
assets (including unrealized appreciation) of each fund immediately before the
conversion were as follows:
COMMON NET UNREALIZED GOLDEN OAK
TRUST FUND ASSETS APPRECIATION SHARES ISSUED
- -----------------------------------------------------
Tax Exempt
Bond Fund $77,580,483 $ 1,803,730 7,758,048
Value Equity
Fund 26,599,230 12,716,514 2,659,923
9. Consents of Sole Shareholder:
On June 20, 1997, the sole shareholder of the Golden Oak Michigan Tax Free Bond
Portfolio and Golden Oak Value Portfolio (the "Portfolios") approved the
following appointments: SEI Fund Resources as administrator of the Portfolios,
Citizens Bank as investment adviser to the assets of the Portfolios, SEI
Investments Distribution Co. as distributor of the shares of the Portfolios,
Price Waterhouse LLP as independent public accountants of the Portfolios and,
for the Golden Oak Value Portfolio, Systematic Financial Management, L.P. as
sub-adviser to the assets of that Portfolio.
24
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NOTES
<PAGE>
NOTES
<PAGE>
<PAGE>
THE GOLDEN OAK FAMILY OF FUNDS
GROWTH PORTFOLIO
VALUE PORTFOLIO
INTERMEDIATE-TERM INCOME PORTFOLIO
MICHIGAN TAX FREE BOND PORTFOLIO
PRIME OBLIGATION MONEY MARKET PORTFOLIO
INVESTMENT ADVISER:
CITIZENS BANK
328 SOUTH SAGINAW STREET
FLINT, MI 48502
DISTRIBUTOR:
SEI INVESTMENTS DISTRIBUTION CO.
OAKS, PA 19456
FOR INFORMATION, CALL:
1-800-545-6331
GOK-F-002-02
