The Arbor Fund
Annual Report
As of January 31, 1999
Golden Oak
Family of Funds
ADVISED BY
CITIZENS BANK
<PAGE>
Table of Contents
Letter to Shareholders ................................................. 2
Managers' Discussion of Fund Performance ............................... 4
Report of Independent Accountants ...................................... 12
Statements of Net Assets ............................................... 13
Statement of Operations ................................................ 27
Statement of Changes in Net Assets ..................................... 28
Financial Highlights ................................................... 30
Notes to Financial Statements .......................................... 32
Notice to Shareholders ................................................. 37
<PAGE>
Dear Shareholder:
Large capitalization U.S. stocks excelled for the fourth consecutive year, and
we're pleased to report that the Golden Oak Growth Portfolio was an outstanding
performer while still maintaining a risk-limiting diversified portfolio. The
Intermediate-Term Income Portfolio was also a top performer, as its overweighted
position in U.S. Treasury securities during last summer's "flight to quality"
was nicely rewarded. Value-style stocks were greatly out-of-favor last year, but
the risk-limited practices adopted by the Golden Oak Value Portfolio began to
favorably impact performance during the strong fourth quarter.
While the 1998 Golden Oak achievements are a source of pride, the new fiscal
year will challenge investors with a diverse set of economic and financial
developments. Business conditions in the U.S. continue to exceed expectations,
but global competition is holding prices down and restraining earnings growth in
many industries. In general, the level of the stock market appears to reflect
excessive optimism regarding 1999 profits.
Inflation remains low and stable, but the huge amount of liquidity injected last
fall by our Federal Reserve and other central banks of the world could provide
one of the surprises of 1999. If this massive addition to the world's money
supply begins to stimulate the demand for real goods as well as financial
assets, then we could actually develop some fear of economic overheating and a
worsening of inflation. While this scenario is not the "most likely case", the
possibility will increase during the year unless our money supply growth rate
slows appreciably.
In spite of the economic crosscurrents during the short run, we believe that the
positive impact on financial markets from the world's massive technological
revolution is still in its early stages. Although we will continue to experience
market corrections--even an occasional bear market--the next decade should prove
to be rewarding for those investors who are patient, who are diversified, and
who have an objectives-based investment plan.
1
<PAGE>
The 1999 plans for the Golden Oak Family include the addition of two new funds.
In late April the Tax-Managed Equity Portfolio will be introduced. The portfolio
will blend large cap growth and large cap value style stocks, with an emphasis
on maximizing the after-tax investment return. Nicholas-Applegate Capital
Management, who has provided outstanding portfolio management for the Growth
Portfolio, will serve in the same capacity for this new fund.
The second new offering is the Golden Oak Small Cap Value Portfolio. The
development process has begun and we expect to be able to offer the fund to you
during the third quarter of the year.
Expanding the Golden Oak Family to include seven different mutual funds is part
of our commitment to assist investors with various needs in achieving long term
financial goals. We will continue to work hard to justify the confidence you've
shown by investing in the Golden Oak Family of Funds.
Sincerely,
/s/ DANA A. CZMER
Dana A. Czmer
Senior Vice President &Trust Officer
Citizens Bank
2
<PAGE>
Managers' Discussion of Fund Performance
Fiscal Year Ended January 31, 1999
Golden Oak Growth Portfolio
For the fiscal year ending January 31, 1999, the Golden Oak Growth Portfolio
benefited from superior stock selection and risk control enhancements
implemented in the previous fiscal year ending January 31, 1998. The risk
enhancements eliminated significant structural differences between the Portfolio
and the Russell 1000 Growth Index and, as anticipated, allowed relative
performance to be more dependent on the manager's ability to pick stocks.
Roller coaster fluctuations took the U.S. market to record highs, dramatic lows
and on to greater highs during the year. The Golden Oak Growth Portfolio
outperformed the Russell 1000 Growth Index in every fiscal quarter during the
year and added nearly 11 percentage points versus the Index for the entire
fiscal year.
Low inflation, and forecasts for a resumption of profit growth later on in the
year spurred broad market gains in February. For the first fiscal quarter ending
April 30, 1998, the Portfolio outperformed the Russell 1000 Growth Index by
0.71% (14.07% vs. 13.36%.) During the next fiscal quarter, smaller stocks
retreated while investor worries about Asia's economic meltdown spreading to the
rest of the world resurfaced. Despite these worries larger stocks continued to
advance. During the second fiscal quarter, Golden Oak Growth Portfolio outpaced
the Index by 2.77% (5.20% vs. 2.43%).
After mid July the global turmoil in Asia, Russia, and Latin America also caught
up to larger stocks. However, the Golden Oak Growth Portfolio proved to be
resilient and dug out a positive return of 0.18%. The Russell 1000 Growth Index
over the same period retreated 1.12%.
Capping off this volatile year, intervention by the federal reserve, reform
announcements in Japan and Brazil, and surging merger and acquisition activity
shoved the broad market up again. For the fiscal fourth quarter, the Portfolio
surged 27.46% vs. 24.20% for the Russell 1000 Growth Index. During this period,
investors demonstrated a definitive preference for companies able to deliver
consistent growing profits regardless of company size.
Reviewing the performance attribution for the Portfolio relative to the Russell
1000 Growth Index for the fiscal year, stock selection was superior for 8 out of
13 sectors. The technology, retail, commercial/industrial, and health services
sectors (accounting for 56% of the portfolio's holdings for the fiscal year)
contributed heavily to the Portfolio's superior year relative to the Index.
Holdings within the above mentioned sectors include Dell Computer Corp., Best
Buy Inc., Airtouch Communications, and Amgen Inc.
For the fiscal year the Golden Oak Growth Portfolio seemed to run on all
cylinders, benefiting from superior stock selection and the risk enhancements
implemented last fiscal year. Over the fiscal year ending January 31, 1999 the
Portfolio showed superior performance during positive quarters for the Russell
1000 Growth Index and did not participate in the Index's one down quarter for
the fiscal year.
4
<PAGE>
Managers' Discussion of Fund Performance
Fiscal Year Ended January 31, 1999
-------------------- INVESTMENT PERFORMANCE ANALYSIS --------------------
Annualized Annualized Annualized
One Year 3 Year 5 year Inception
Return(1) Return(1) Return(1) to Date(1)
- --------------------------------------------------------------------------------
Class I 51.98% 33.28% 21.66% 19.47%
- --------------------------------------------------------------------------------
Class A 51.45% 32.94% 21.27% 21.42%
- --------------------------------------------------------------------------------
Class A, with load(2) 42.78% 30.35% 19.84% 20.15%
[GRAPH A OMITTED]
[GRAPH A:]
Comparison of change in the value of a $10,000 investment in the Golden Oak
Growth Portfolio, Class I, versus the Frank Russell 1000 Growth Index
[PLOT POINTS FOLLOWS]
Golden Oak Growth Fund, Class I Frank Russell 1000 Growth Index
Feb-93 10,000 10,000
Jan 94 11,050 10,820
Jan 95 10,470 11,090
Jan 96 12,440 15,390
Jan 97 15,400 19,630
Jan 98 19,380 24,650
Jan 99 29,450 35,140
[GRAPH B OMITTED]
[GRAPH B:]
Comparison of change in the value of a $10,000 investment in the Golden Oak
Growth Portfolio, Class A, versus the Frank Russell 1000 Growth Index
[PLOT POINTS FOLLOWS]
Golden Oak Growth Fund, Class A Frank Russell 1000 Growth Index
Jun 93 9,430 10,000
Jan 94 10,520 10,780
Jan 95 9,910 11,050
Jan 96 11,740 15,340
Jan 97 14,510 19,560
Jan 98 18,210 24,560
Jan 99 27,580 35,020
1 For the period ended January 31, 1999. Past performance of the Portfolio
is not predictive of future performance. Individual Class A shares were
offered beginning June 18, 1993. Class I shares were offered beginning
February 1, 1993.
2 Performance of the Class A shares reflects the maximum front end sales
charge of 5.75%.
5
<PAGE>
Managers' Discussion of Fund Performance
Fiscal Year Ended January 31, 1999
Golden Oak Value Portfolio
For the 12-month period ended January 31, 1999, the Class A shares of the Golden
Oak Value Portfolio had a total return of 12.19%, as compared to 18.23% for the
benchmark Russell 1000 Value Index. Performance versus the benchmark was
constrained by the Portfolio's equal weighting portfolio construction approach
and the relative underweighting of high price-to-earnings industry groups such
as media and cable television.
As of January 31, 1999, the Golden Oak Value Portfolio was overweighted in
technology and healthcare, and underweighted in communication services, consumer
staples, and financials. Sector and industry weightings relative to the
benchmark Russell 1000 Value Index reflect earnings strength relative to
valuation and are purely a function of bottom-up fundamental analysis. According
to First Call, the average stock in the Golden Oak Value Portfolio traded at 20
times estimated 1999 earnings, exceeded consensus estimates by 8% in the latest
reported quarter, and was expected to grow earnings per share by 22% over the
next 12 months.
6
<PAGE>
Managers' Discussion of Fund Performance
Fiscal Year Ended January 31, 1999
-------------------- INVESTMENT PERFORMANCE ANALYSIS --------------------
Annualized Annualized Annualized Annualized
One Year 3 Year 5 Year 10 Year Inception
Return(1) Return(1) Return(1) Return(1) to Date(1)
- --------------------------------------------------------------------------------
Synthetic Class I* 12.63% 19.71% 17.24% 13.14% 13.63%+
- --------------------------------------------------------------------------------
Synthetic Class A* 12.19% 19.27% 16.84% 12.78% 13.39%+
- --------------------------------------------------------------------------------
Synthetic Class A,
with load*(2) 5.73% 16.92% 15.46% 12.12% 12.91%+
Comparison of change in the value of a $10,000 investment in the Golden Oak
Value Portfolio, Synthetic Class I or Synthetic Class A, versus the Frank
Russell 1000 Value Index, the Lipper Growth& Income Average, and the Lipper
Growth & Income Index
[GRAPH OMTTED]
[PLOT POINT FOLLOWS]
Golden Oak Golden Oak Frank Lipper Lipper
Value, Portfolio, Value, Portfolio, Russell Growth & Growth &
Synthetic Synthetic 1000 Value Income Income
Class I Class A Index Average Index
Jan-89 10,000 9,430 10,000 10,000 10,000
Jan-90 10,350 9,720 10,990 11,050 11,010
Jan-91 10,570 9,890 11,250 11,730 11,540
Jan-92 12,470 11,640 13,440 14,470 14,000
Jan-93 13,940 12,980 15,720 16,000 15,610
Jan-94 15,520 14,410 18,760 18,320 18,220
Jan-95 14,800 13,710 18,260 17,900 17,880
Jan-96 20,040 18,490 25,280 23,820 23,690
Jan-97 24,840 22,830 31,260 29,350 29,000
Jan-98 30,520 27,960 39,740 35,740 35,290
Jan-99 34,370 31,370 46,980 41,940 40,380
* Synthetic Total Return information represents the actual class performance
blended with Common Trust Fund historical data adjusted for expenses.
1 For the period ended January 31, 1999. Past performance of the Portfolio is
not predictive of future performance. Individual Class I and A shares were
offered beginning June 23, 1997.
2 Performance of the Class A shares reflects the maximum front end sales charge
of 5.75%.
7
<PAGE>
Managers' Discussion of Fund Performance
Fiscal Year Ended January 31, 1999
Golden Oak Intermediate-Term Income Portfolio
For the 12-month period ended January 31, 1999 the Class I Shares of the Golden
Oak Intermediate-Term Income Portfolio had a total return of 8.60% as compared
to the benchmark Lehman Brothers Intermediate Government/Corporate Index (the
"Index") measure of 7.60%. The SEC 30-day yield for Class I Shares as of January
31, 1999 was 5.00%. Class A Shares had a total return of 8.23%. The SEC 30-day
yield for Class A Shares as of January 31, 1999 was 4.75%.
Our outlook for 1998 was for the economy to slow due to the impact of the Asian
financial crisis. GDP was forecasted at between 2% and 2.5% with a chance of it
coming in weaker. Inflation would continue to decelerate due to the influence of
the strong dollar and a flood of low priced Asian imports. The portfolio was
duration neutral and overweighted in corporates. A longer position would be
adopted as the inflation outlook continued to improve.
Although the economy was much stronger than anticipated, inflation continued its
downward trend. The portfolio shifted to a long duration position during the
first quarter of 1998. The portfolio had a total return for the six months ended
June 30, 1998 of 2.63% as compared with the benchmark index of 2.48%.
The second half of 1998 was dominated by a flight to Treasuries brought on by a
near collapse of a large hedge fund, Russian credit troubles and a financial
crisis in Latin America. Treasury yields fell and corporate spreads rose to
levels not seen since the last recession. The portfolio's long Treasury and high
quality position paid off well. The total return for the third quarter and
fourth quarter of 1998 was 5.60% and -0.23% respectively as compared with the
benchmark index of 4.48% and 0.29%.
Will this be the year the slowdown finally comes? For the last 3 years
economists' projections for the GDP have been too pessimistic--missing the mark
by as much as 2 percentage points. Like the beginning of the last 3 years,
analysts see plenty of reasons to be less than exuberant in 1999. Corporate
profits should sag as a result of rising labor costs and the inability to raise
prices due to global competition. Large corporations began responding to this
profit squeeze in the fourth quarter with layoff announcements. Previously, they
had announced reduced capital spending plans.
The export sector continues to be soft as the Asian Tigers struggle and Japan
remains mired in recession. The new European Monetary Union enhances Europe's
competitive position in the global marketplace to the detriment of U.S. exports.
The U.S. consumer will again be called upon to keep the economic ball rolling.
Reduced mortgage rates have helped boost spending but pent-up demand for housing
and autos can't last forever. If the market drops, the wealth effect from the
surging equity market will suffer, but with a lag. Consumer confidence has
remained strong through all the global shocks of 1998 and the high market
volatility that they produced. Potential economic/consumer confidence shocks
still remain:
[bullet] Brazilian, Russian, Asian and Japanese economic malaise
[bullet] Iraq
[bullet] Y2K problems/perceptions
Even with help from Mr. Greenspan, it seems unlikely that in 1999 the consumer
will be able to make the economists' forecasts miss the mark as much as in the
1996-1998 period. It would be nice to be proven wrong, but we are forecasting a
slowing economy, and steady to lower inflation and interest rates.
8
<PAGE>
Managers' Discussion of Fund Performance
Fiscal Year Ended January 31, 1999
- -------------------- INVESTMENT PERFORMANCE ANALYSIS --------------------
Annualized Annualized Annualized
One Year 3 Year 5 year Inception
Return(1) Return(1) Return to Date(1)
- --------------------------------------------------------------------------------
Class I 8.60% 6.29% 5.92% 6.10%
- --------------------------------------------------------------------------------
Class A 8.23% 5.98% 5.63% 5.75%
- --------------------------------------------------------------------------------
Class A, with load(2) 3.39% 4.36% 4.66% 4.88%
[GRAPH A OMITTED]
[PLOT POINT FOLLOWS:]
Comparison of change in the value of a $10,000 investment in the Golden Oak
Intermediate-Term Income Portfolio, Class I, versus the Lehman Brothers
Intermediate Government/Corporate Index
[PLOT POINTS A FOLLOWS]
Golden Oak Intermediate-Term Lehman Intermediate
Income Fund, Class I Government/Corporate Index
Feb-93 10,000 10,000
Jan-94 10,569 10,622
Jan-95 10,399 10,475
Jan-96 11,733 11,981
Jan-97 12,004 12,409
Jan-98 12,972 13,509
Jan 99 14,088 14,535
Comparison of change in the value of a $10,000 investment in the Golden Oak
Intermediate-Term Income Portfolio, Class A without load, versus the Lehman
Brothers Intermediate Government/Corporate Index
[PLOT POINTS B FOLLOWS]
Golden Oak Intermediate-Term Lehman Intermediate
Income Fund, Class I Government/Corporate Index
Jun-93 9,550 10,000
Jan-94 9,860 10,356
Jan-95 9,678 10,213
Jan-96 10,891 11,682
Jan-97 11,114 12,099
Jan-98 11,979 13,171
Jan 99 12,965 14,172
1 For the period ended January 31, 1999. Past performance of the Portfolio
is not predictive of future performance. Individual Class A shares were
offered beginning June 18, 1993. Class I shares were offered beginning
February 1, 1993.
2 Performance of the Class A shares reflects the maximum front end sales
charge of 4.50%.
9
<PAGE>
Managers' Discussion of Fund Performance
Fiscal Year Ended January 31, 1999
Golden Oak Michigan Tax Free Bond Portfolio
For the 12-month period ended January 31, 1999, the Class I shares of the Golden
Oak Michigan Tax Free Bond Portfolio had a total return of 5.40% as compared to
the Merrill Lynch Intermediate Municipal Index's (the "Index") 6.85% total
return. The SEC 30 day yield for Class I shares as of January 31, 1999 was
3.45%. Class A shares had a total return of 5.17% for the same period and an SEC
30 day yield of 3.24% on January 31, 1999.
For the fourth quarter of 1998, the Class I shares' return was 0.56% versus a
return of 0.78% for the Index. The Class A shares returned 0.50% during this
quarter.
During 1998 the average duration of the portfolio was 97% of the Index's.
Trading was focused on extending/maintaining duration as well as trimming the
number of smaller issues that are held. In 1999 the intention is to continue to
maintain the portfolio's duration. Rates are expected to be flat to down as long
as inflation remains moderate.
The flight to "liquidity" in the fall of 1998 produced outstanding returns for
the most liquid of the Treasury issues. The remaining sectors of the fixed
income market were left in the dust and underperformed in comparison to
Treasuries. Michigan municipals were no exception. The good news is that this
has produced a unique opportunity for municipal bond investors as the
municipal-to-treasury yield ratios are at historically high levels (90% or
more). This creates the potential for municipal bonds to outperform as the yield
ratio returns to traditional levels (around 80%). This phenomenon has already
started during January 1999 and is expected to continue unless there are more
global financial shocks that reignite the liquidity fears.
10
<PAGE>
Managers' Discussion of Fund Performance
Fiscal Year Ended January 31, 1999
- -------------------- INVESTMENT PERFORMANCE ANALYSIS --------------------
Annualized Annualized Annualized Annualized
One Year 3 Year 5 Year 10 Year Inception
Return(1) Return(1) Return(1) Return(1 to Date(1)
- --------------------------------------------------------------------------------
Synthetic Class I* 5.40% 5.14% 4.69% 6.32% 6.69%+
- --------------------------------------------------------------------------------
Synthetic Class A* 5.17% 4.92% 4.44% 6.05% 6.53%+
- --------------------------------------------------------------------------------
Synthetic Class A,
with load*(2) 0.46% 3.32% 3.48% 5.56% 3.54%+
Comparison of change in the value of a $10,000 investment in the Golden Oak
Michigan Tax Free Bond Portfolio, Synthetic Class I or Synthetic Class A,
versus the Lehman 3-10 Year Muni Blended Index, Merrill 1-12 Year Municipal
Index, and the Lipper Michigan Municipal Debt Funds Average
[GRAPH OMITTED]
{PLOT POINT FOLLOWS]
Golden Oak Michigan Golden Oak Michigan Lehman Lipper Merrill
Tax-Free Bond, Tax-Free Bond, 3-10 Muni Michigan 1-12 Year
Portfolio Synthetic Portfolio Synthetic Blended Municipal Debt Municipal
Class I Class A Index Funds Average Index
Jan-89 10,000 9,550 10,000 10,000 10,000
Jan-90 10,564 10,062 10,729 10,735 10,674
Jan-91 11,385 10,822 11,699 11,804 11,525
Jan-92 12,507 11,849 12,869 12,959 12,723
Jan-93 13,402 12,671 13,954 14,028 14,026
Jan-94 13,683 13,824 15,313 15,358 15,764
Jan-95 14,301 13,434 15,019 15,038 15,088
Jan-96 15,881 14,871 16,947 17,008 17,167
Jan-97 16,313 15,233 17,589 17,637 17,611
Jan-98 17,514 16,333 19,009 19,093 19,281
Jan-99 18,460 17,177 20,201 20,400 20,349
* Synthetic Total Return information represents the actual class performance
blended with Common Trust Fund historical data adjusted for expenses.
1 For the period ended January 31, 1999. Past performance of the Portfolio is
not predictive of future performance. Individual Class I and A shares were
offered beginning June 23, 1997.
2 Performance of the Class A shares reflects the maximum front end sales charge
of 4.50%.
11
<PAGE>
Report of Independent Accountants
To the Shareholders and Board of Trustees
of The Arbor Fund
In our opinion, the accompanying statements of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Golden Oak Growth, Golden Oak Value, Golden Oak Intermediate-Term Income, Golden
Oak Michigan Tax Free Bond and Golden Oak Prime Obligation Money Market
Portfolios (separately managed portfolios of The Arbor Fund, hereafter referred
to as the "Trust") at January 31, 1999, the results of each of their operations,
for the year then ended, the changes in each of their net assets and the
financial highlights for each of the periods presented, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Trust's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at January 31, 1999 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
Philadelphia, PA
March 15, 1999
12
<PAGE>
Statement of Net Assets Golden Oak Family of Funds
January 31, 1999
Growth Value
Portfolio Shares (000)
- --------------------------------------------------------------------------------
Common Stocks -- 93.6%
Aircraft -- 4.7%
General Dynamics 16,500 $ 959
United Technologies 11,900 1,421
------
Total Aircraft 2,380
------
Automation & Control Systems -- 1.5%
Honeywell 11,500 750
------
Banks -- 0.6%
BB&T Corporation 8,400 321
------
Beauty Products -- 1.8%
Colgate-Palmolive 11,200 901
------
Broadcasting, Newspapers and Advertising -- 4.0%
Comcast, Cl A 14,500 986
Omnicom Group 16,800 1,075
------
Total Broadcasting, Newspapers
and Advertising 2,061
------
Chemicals -- 0.5%
Avery Dennison 5,500 272
------
Communications Equipment -- 3.1%
Lucent Technologies 14,000 1,576
------
Computer Software -- 5.4%
Compuware* 4,400 292
Microsoft* 14,000 2,450
------
Total Computer Software 2,742
------
Computers & Services -- 11.0%
Compaq Computer 10,300 491
Dell Computer* 31,400 3,140
EMC* 18,200 1,982
------
Total Computers & Services 5,613
------
Drugs -- 15.8%
Abbott Laboratories 12,300 571
Amgen* 10,800 1,380
Eli Lilly 25,400 2,380
Schering Plough 34,100 1,858
Warner Lambert 25,700 1,855
------
Total Drugs 8,044
------
Growth Value
Portfolio (continued) Shares (000)
- --------------------------------------------------------------------------------
Electrical & Electronic Products-- 3.7%
General Electric 16,500 $1,730
Solectron* 2,000 178
------
Total Electrical & Electronic Products 1,908
------
Financial Services -- 5.9%
Capital One Financial 9,200 1,218
Fannie Mae 20,000 1,458
Greenpoint Financial 11,200 367
------
Total Financial Services 3,043
------
Food, Beverage & Tobacco -- 6.2%
H.J. Heinz 15,100 850
PepsiCo 7,500 293
Philip Morris 17,800 837
Quaker Oats 21,300 1,185
------
Total Food, Beverage & Tobacco 3,165
------
Health Services -- 0.5%
McKesson HBOC 4 --
Wellpoint Health Networks* 3,200 239
------
Total Health Services 239
------
Insurance -- 1.6%
Allstate 21,500 808
------
Marine Transportation -- 1.1%
Carnival 11,100 545
------
Petroleum & Fuel Products-- 1.1%
Phillips Petroleum 14,500 560
------
Retail -- 10.5%
Best Buy* 23,000 2,087
Estee Lauder 6,800 558
Home Depot 11,100 670
Kohl's* 1,200 81
Lowe's Companies 2,700 157
Wal-Mart Stores 20,900 1,797
------
Total Retail 5,350
------
Semi-Conductors/Instruments-- 5.7%
Intel 20,800 2,932
------
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
Statement of Net Assets (continued) Golden Oak Family of Funds
January 31, 1999
Shares/
Growth Face Value
Portfolio(continued) Amount (000) (000)
- --------------------------------------------------------------------------------
Software -- 2.6%
America Online* 4,600 $ 808
BMC Software* 2,400 112
Oracle Systems* 7,000 388
-------
Total Software 1,308
-------
Telecommunications Equipment -- 0.5%
Becton Dickinson 6,000 215
Boston Scientific* 1,900 46
-------
Total Telecommunications Equipment 261
-------
Telephones & Telecommunication -- 5.8%
AT&T 5,800 526
Airtouch Communications* 21,000 2,028
Bellsouth 9,800 437
-------
Total Telephones & Telecommunication 2,991
-------
Total Common Stocks
(Cost $31,543) 47,770
-------
Repurchase Agreement -- 6.5%
Morgan Stanley (A)
4.67%, dated 01/29/99, matures
02/01/99, repurchase price
$3,303,081(collateralized by
U.S. Treasury Note, par value
$3,357,000, 4.625%, 12/31/00:
market value $3,369,975) $3,303 3,303
-------
Total Repurchase Agreement
(Cost $3,303) 3,303
-------
Total Investments -- 100.1%
(Cost $34,846) 51,073
-------
Other Assets and Liabilities, Net -- (0.1%) (36)
-------
Growth Value
Portfolio (concluded) (000)
- --------------------------------------------------------------------------------
Net Assets:
Portfolio Shares of Class I (unlimited
authorization -- no par value)
based on 3,062,769 outstanding
shares of beneficial interest $30,687
Portfolio Shares of Class A (unlimited
authorization -- no par value)
based on 96,925 outstanding
shares of beneficial interest 1,267
Accumulated Net Realized Gain on Investments 2,856
Net Unrealized Appreciation on Investments 16,227
-------
Total Net Assets -- 100.0% $51,037
=======
Net Asset Value, Offering and Redemption
Price Per Share -- Class I $16.16
=======
Net Asset Value and Redemption Price
Per Share -- Class A $15.89
=======
Maximum Offering Price per Share --
Class A ($15.89 / 94.25%) $16.86
=======
- --------------------------------------------------------------------------------
* Non-income producing security
Amounts designated as "--" or either $0 or have been rounded to $0.
(A) Tri-Party Repurchase Agreement
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
Statement of Net Assets (continued) Golden Oak Family of Funds
January 31, 1999
Value Value
Portfolio Shares (000)
- --------------------------------------------------------------------------------
Common Stocks -- 97.8%
Air Transportation -- 2.2%
AMR* 17,500 $1,028
------
Automotive -- 4.1%
Ford Motor 9,885 607
General Motors 15,000 1,346
------
Total Automotive 1,953
------
Banks -- 11.2%
Bank One 12,000 628
Fifth Third Bancorp 8,500 582
First Union 11,100 584
Fleet Financial Group 15,000 665
Golden West Financial 6,200 582
Mellon Bank 10,320 691
Northern Trust 10,000 866
Wachovia 8,000 709
------
Total Banks 5,307
------
Chemicals -- 1.0%
Praxair 15,000 485
------
Communications Equipment -- 1.5%
Northern Telecom Limited 3,800 240
Scientific-Atlanta 15,000 467
------
Total Communications Equipment 707
------
Computer Software -- 1.1%
Computer Associates International 10,000 506
------
Computers & Services -- 9.1%
3Com* 20,000 940
Compaq Computer 20,900 995
Gateway 2000* 12,000 927
International Business Machines 5,000 916
Unisys* 16,300 540
------
Total Computers & Services 4,318
------
Drugs -- 3.4%
Allergan 5,200 400
Merck & Co. 3,200 470
Pharmacia & Upjohn 12,600 724
------
Total Drugs 1,594
------
Value Value
Portfolio (continued) Shares (000)
- --------------------------------------------------------------------------------
Electrical Utilities -- 6.9%
FPL Group 7,600 $ 417
Houston Industries 12,500 380
Nipsco Industries 15,720 426
Southern 15,000 404
Halliburton 25,000 742
PG&E 28,000 894
------
Total Electrical Utilities 3,263
------
Electrical & Electronic Products -- 0.7%
Entergy 11,000 324
------
Environmental Services -- 0.9%
Waste Management 8,800 439
------
Financial Services -- 4.5%
Fannie Mae 11,830 862
Freddie Mac 7,000 434
Morgan Stanley, Dean Witter,
Discover 9,500 825
------
Total Financial Services 2,121
------
Forestry Products -- 1.8%
Weyerhaeuser 16,000 866
------
Glass Products -- 0.9%
Corning 9,000 439
------
Household Products -- 2.1%
Maytag 16,100 1,017
------
Industrial -- 1.1%
Tyco International Limited 7,080 546
------
Insurance -- 4.3%
Citigroup 18,000 1,009
AIG 10,000 1,029
------
Total Insurance 2,038
------
Machinery -- 1.6%
Ingersoll-Rand 16,000 760
------
Medical Products -- 0.4%
Wellpoint Health Networks* 2,800 209
------
Miscellaneous Business Services -- 4.0%
First Data 12,800 490
NCR* 15,600 761
Teradyne* 10,000 659
------
Total Miscellaneous Business Services 1,910
------
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
Statement of Net Assets (continued) Golden Oak Family of Funds
January 31, 1999
Value Value
Portfolio (continued) Shares (000)
- --------------------------------------------------------------------------------
Office Furniture & Fixtures -- 1.0%
Johnson Controls 7,500 $ 483
-------
Paper & Paper Products -- 0.3%
Fort James 3,900 140
-------
Petroleum Refining -- 6.1%
Chevron 5,200 389
Exxon 10,000 704
Mobil 14,000 1,228
Texaco 12,000 569
-------
Total Petroleum Refining 2,890
-------
Railroads -- 1.0%
Union Pacific 9,400 484
-------
Retail -- 5.7%
Best Buy* 8,500 771
Lowe's Companies 8,800 513
McDonald's 12,000 946
Safeway* 8,800 494
-------
Total Retail 2,724
-------
Semi-Conductors/Instruments -- 7.0%
AMP 9,000 474
Intel 7,500 1,057
Stmicroelectronics N.v.* 6,000 627
Texas Instruments 12,000 1,187
-------
Total Semi-Conductors/Instruments 3,345
-------
Steel & Steel Works -- 2.4%
Alcoa 10,000 836
Allegheny Teledyne 15,000 304
-------
Total Steel & Steel Works 1,140
-------
Telephones & Telecommunication -- 10.4%
AT&T 14,700 1,334
Alltel 16,500 1,065
Ameritech 7,000 456
MCI WorldCom* 11,400 909
Sprint 2,600 218
US West 16,060 991
-------
Total Telephones & Telecommunication 4,973
-------
Wholesale -- 1.1%
Supervalu 20,000 549
-------
Total Common Stocks
(Cost $36,216) 46,558
-------
Face
Value Amount Value
Portfolio (concluded) (000) (000)
- --------------------------------------------------------------------------------
Repurchase Agreement -- 2.2%
Morgan Stanley (A)
4.50%, dated 01/29/99, matures
02/01/99, repurchase price
$1,039,730 (collateralized by
U.S. Treasury Bill: total market
value $1,066,036) $1,040 $ 1,040
-------
Total Repurchase Agreement
(Cost $1,040) 1,040
-------
Total Investments -- 100.0%
(Cost $37,256) 47,598
(14)
-------
Net Assets:
Portfolio Shares of Class I (unlimited
authorization -- no par value)
based on 5,068,267 outstanding
shares of beneficial interest 35,573
Portfolio Shares of Class A (unlimited
authorization -- no par value)
based on 120,429 outstanding
shares of beneficial interest 1,059
Undistributed Net Investment Income 6
Accumulated Net Realized Gain on Investments 604
Net Unrealized Appreciation on Investments 10,342
-------
Total Net Assets -- 100.0% $47,584
=======
Net Asset Value, Offering and Redemption
Price Per Share -- Class I $9.17
=======
Net Asset Value and Redemption
Price Per Share-- Class A $9.14
=======
Maximum Offering Price per Share --
Class A ($9.14 / 94.25%) $9.70
=======
- --------------------------------------------------------------------------------
* Non-income producing security
(A) Tri-Party Repurchase Agreement
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
Statement of Net Assets (continued) Golden Oak Family of Funds
January 31, 1999
Face
Intermediate-Term Income Amount Value
Portfolio (000) (000)
- --------------------------------------------------------------------------------
Corporate Obligations -- 41.1%
Banks -- 5.8%
Huntington National, MTN
6.050%, 08/25/99 $2,000 $ 2,010
MBNA, MTN (A)
5.569%, 06/17/02 3,700 3,674
National City Bank
5.750%, 02/01/09 3,000 2,989
-------
Total Banks 8,673
-------
Financial Services -- 7.3%
Associates Corporation, N.A.
8.550%, 07/15/09 2,000 2,412
BHP Finance
8.500%, 12/01/12 3,917 4,659
Boeing Capital, MTN
7.250%, 02/01/11 1,000 1,131
Chrysler Financial
13.250%, 10/15/99 1,000 1,055
International Lease Finance
6.270%, 02/10/99 1,725 1,725
-------
Total Financial Services 10,982
-------
Industrial -- 14.6%
Case
7.250%, 08/01/05 2,000 2,090
Cooper Industries, MTN
6.375%, 05/08/08 2,000 2,105
Hertz
7.000%, 05/01/02 2,800 2,870
Philip Morris
7.000%, 07/15/05 1,500 1,592
RR Donnelley & Sons
6.700%, 07/05/05 1,000 1,075
Supervalu, MTN
6.640%, 06/09/06 3,000 3,116
TRW
7.370%, 04/18/07 4,500 4,995
Unocal
6.500%, 05/01/08 2,000 2,002
WMX Technologies
7.000%, 05/15/05 2,000 2,110
-------
Total Industrial 21,955
-------
U.S. Government Agency Bonds -- 6.6%
FHLB
5.740%, 02/25/05 3,500 3,601
Face
Intermediate-Term Income Amount Value
Portfolio (continued) (000) (000)
- --------------------------------------------------------------------------------
FNMA
6.460%, 12/01/28 $3,127 $ 3,150
FNMA, MTN
6.580%, 05/14/08 3,000 3,061
-------
Total U.S. Government Agency Bonds 9,812
-------
Transportation-Non Railroad -- 0.6%
US Airways
6.760%, 04/15/08 928 934
-------
Railroads -- 2.0%
CSX
6.400%, 06/15/09 2,000 2,059
Union Pacific
6.125%, 01/15/04 1,000 997
-------
Total Railroads 3,056
-------
Telephones & Telecommunication -- 4.2%
Cable & Wireless Communications
6.750%, 03/06/08 1,000 1,015
GTE North
6.375%, 02/15/10 2,000 2,130
US West Capital Funding
6.375%, 07/15/08 3,000 3,195
-------
Total Telephones & Telecommunication 6,340
-------
Total Corporate Obligations
(Cost $59,816) 61,752
-------
Asset-Backed Securities -- 5.5%
Bay View Auto Trust, Ser 1997-RA1
6.290%, 12/15/01 235 235
First Union Residential
Securitization Trust,
Ser 1998-A, Cl B1
7.000%, 08/25/28 2,945 2,849
Residential Assistance
Securities Trust,
Ser 1998-A4, Cl A5
6.750%, 05/25/28 5,000 5,067
WFS Financial Owner Trust,
Ser 1996-B, Cl A3
6.650%, 08/20/00 157 157
-------
Total Asset-Backed Securities
(Cost $8,239) 8,308
-------
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
Statement of Net Assets (continued) Golden Oak Family of Funds
January 31, 1999
Face
Intermediate-Term Income Amount Value
Portfolio(continued) (000) (000)
- --------------------------------------------------------------------------------
U.S. Agency Mortgage-Backed Obligations -- 9.5%
FHLMC Ser 1262 Cl H
4.500%, 11/15/20 $ 1,785 $ 1,749
FHLMC Ser 2085 Cl Pc
6.250%, 10/15/23 5,000 5,055
FNMA
7.040%, 08/01/15 1,403 1,571
FNMA
6.390%, 08/01/13 5,417 5,693
FNMA, REMIC, Ser 1993-M1, Cl A
7.934%, 04/25/20 150 151
-------
TOTAL U.S. Agency Mortgage-
Backed Obligations
(Cost $13,820) 14,219
-------
U.S. Treasury Obligations -- 32.9%
U.S. Treasury Bonds
7.500%, 11/15/16 14,500 18,095
6.250%, 08/15/23 2,000 2,246
5.250%, 11/15/28 3,000 3,071
U.S. Treasury Notes
7.750%, 02/15/01 3,375 3,577
6.250%, 04/30/01 1,000 1,034
7.500%, 05/15/02 2,700 2,929
6.375%, 08/15/02 10,000 10,536
7.875%, 11/15/04 3,600 4,168
6.625%, 05/15/07 1,000 1,124
6.125%, 08/15/07 2,500 2,730
-------
Total U.S. Treasury Obligations
(Cost $46,791) 49,510
-------
Repurchase Agreement -- 11.4%
Morgan Stanley (B)
4.62%, dated 01/29/99, matures
02/01/99, repurchase price
$17,134,794 (collateralized by
U.S. Treasury Instruments
$17,568,426) 17,135 17,135
-------
Total Repurchase Agreement
(Cost $17,135) 17,135
-------
Total Investments -- 100.4%
(Cost $145,801) 150,924
-------
Other Assets and Liabilities, Net -- (0.4%) (584)
-------
Face
Intermediate-Term Income Amount Value
Portfolio (concluded) (000) (000)
- --------------------------------------------------------------------------------
Net Assets:
Portfolio Shares of Class I (unlimited
authorization -- no par value)
based on 14,360,359 outstanding
shares of beneficial interest $143,039
Portfolio Shares of Class A (unlimited
authorization -- no par value)
based on 210,881 outstanding
shares of beneficial interest 2,178
Net Unrealized Appreciation on Investments 5,123
--------
Total Net Assets -- 100.0% $150,340
========
Net Asset Value, Offering and Redemption
Price Per Share -- Class I $10.32
========
Net Asset Value and Redemption
Price Per Share -- Class A $10.31
========
Maximum Offering Price per Share --
Class A ($10.31 / 95.5%) $10.80
========
- --------------------------------------------------------------------------------
(A) Variable Rate Security. The rate shown is the rate in effect as of
January 31, 1999.
(B) Tri-Party Repurchase Agreement
Cl -- Class
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
MTN -- Medium Term Note
N.A. -- National Association
REMIC -- Real Estate Mortgage Investment Conduit
Ser -- Series
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
Statement of Net Assets (continued) Golden Oak Family of Funds
January 31, 1999
Face
Michigan Tax Free Bond Amount Value
Portfolio (000) (000)
- --------------------------------------------------------------------------------
Municipal Bonds -- 97.6%
Michigan -- 97.6%
Alpena County, GO, AMBAC
5.450%, 06/01/01 $ 250 $ 261
Anchor Bay, School District,
GO, MBIA
6.000%, 05/01/03 870 948
Ann Arbor, Water Supply System,
RB, MBIA
7.375%, 02/01/02 1,000 1,104
Auburn Hills, Finance Authority,
Tax Allocation, RB, Series A
7.000%, 05/01/00 300 302
Avondale, School District, GO
6.600%, 05/01/05 200 214
6.700%, 05/01/06 200 215
Big Rapids, Public School District,
GO, FGIC
7.300%, 05/01/05 250 297
Calhoun County, GO, AMBAC
4.950%, 07/01/03 1,000 1,051
Central Michigan State University,
RB, FGIC
5.200%, 10/01/09 860 941
Cheboygan, School District, GO, MBIA
6.000%, 05/01/02 260 279
Chippewa Valley, School District, GO,
Pre-refunded @ 101.50, FGIC (A)
6.200%, 05/01/01 250 269
Clarkston, Community Schools, GO,
FGIC, Pre-refunded @ 101 (A)
5.800%, 05/01/05 1,000 1,121
Clinton County, Building Authority,
GO, Macomb County Project, Ser A,
Pre-refunded @ 102, AMBAC (A)
6.400%, 11/01/01 250 274
De Witt, Public Schools, GO,
Pre-refunded @ 101.5 (A)
6.600%, 05/01/01 300 325
De Witt, Public Schools, GO, AMBAC
6.000%, 05/01/03 935 1,019
Dearborn, Municipal Building
Authority, GO, AMBAC
7.000%, 06/01/01 300 324
7.000%, 06/01/02 475 524
7.000%, 06/01/03 505 571
Detroit, Distributable State Aid,
GO, AMBAC
5.000%, 05/01/05 200 212
Face
Michigan Tax Free Bond Amount Value
Portfolio (continued) (000) (000)
- --------------------------------------------------------------------------------
Detroit, GO, Pre-refunded @ 102 (A)
8.000%, 04/01/01 $1,000 $1,116
Detroit, GO, Refunding Bond, AMBAC
5.250%, 05/01/08 1,000 1,087
Detroit, School District, GO
6.250%, 05/01/12 850 919
Detroit, Sewer Disposal, RB,
Pre-refunded @ 101.5 (A)
7.250%, 07/01/99 200 206
Detroit, Water Supply System,
RB, FGIC
6.250%, 07/01/07 500 536
Detroit, Water Supply System,
Second Lien, RB, Ser A, MBIA
5.100%, 07/01/07 500 536
East Lansing, Refunding Bond,
GO, Ser B
4.850%, 10/01/07 315 320
Ferris State University, RB, AMBAC
Pre-refunded @ 101 (A)
5.400%, 04/01/07 675 748
Flat Rock, Community School District,
GO, MBIA
7.750%, 05/01/04 675 798
Flint, Refunding Bond, GO, MBIA
6.000%, 11/01/03 1,040 1,144
Grand Rapids, Building
Authority, RB
5.375%, 04/01/07 200 215
Grand Rapids, Downtown Development
Authority, RB, MBIA
6.600%, 06/01/08 200 228
Grand Rapids, Water Supply, RB,
FGIC, Escrowed to Maturity
6.400%, 01/01/05 1,000 1,066
Grand Valley, Michigan State
University, RB, MBIA
4.300%, 10/01/01 200 204
Haslett, Public School District,
GO, MBIA
6.000%, 05/01/02 310 332
6.000%, 05/01/03 310 338
Howell, Public Schools, GO, FGIC
5.000%, 05/01/08 1,000 1,051
Ingham County, Proctor Drain System
Project, GO
7.100%, 02/01/01 180 187
Iron Mountain, Finance Authority,
GO, AMBAC
5.000%, 05/01/05 250 261
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
Statement of Net Assets (continued) Golden Oak Family of Funds
January 31, 1999
Face
Michigan Tax Free Bond Amount Value
Portfolio(continued) (000) (000)
- --------------------------------------------------------------------------------
Johannesburg-Lewiston, Area Schools,
GO, AMBAC
6.750%, 05/01/02 $ 280 $ 307
6.750%, 05/01/03 320 358
6.000%, 05/01/04 365 402
Kalamazoo, City School District,
GO, FGIC
4.550%, 05/01/01 1,000 1,025
Kalamazoo, Hospital Finance
Authority, Borgess Medical
Center, Ser A, RB, AMBAC
5.000%, 06/01/04 1,000 1,055
Kalamazoo, Water Supply System
Project, RB
6.000%, 09/01/07 425 460
Kent County, Building Authority, GO
5.000%, 12/01/06 500 537
5.100%, 12/01/07 500 537
Kent, Hospital Authority, RB,
Mary Free Bed Project, Ser A
6.250%, 04/01/03 250 266
Kentwood, Public School System, GO
5.900%, 05/01/04 380 411
Kentwood, Public School System, GO,
Pre-refunded @ 102 (A)
5.900%, 05/01/02 370 403
Lansing, Building Authority, GO,
Escrowed to Maturity
7.100%, 06/01/02 100 111
Lansing, Finance Authority, GO
6.100%, 10/01/03 250 276
Lincoln, School District, GO, FGIC,
Escrowed to Maturity
5.750%, 05/01/09 785 875
5.750%, 05/01/09 115 127
Livonia, Municipal Building
Authority, RB
5.750%, 06/01/04 250 272
Livonia, Public School District, GO
5.450%, 05/01/01 200 209
Livonia, Water Supply & Wastewater
System, RB, AMBAC
5.200%, 11/01/09 1,000 1,031
Montague, Public School District,
GO, FSA
5.125%, 05/01/06 300 323
5.125%, 05/01/08 300 319
Face
Michigan Tax Free Bond Amount Value
Portfolio(continued) (000) (000)
- --------------------------------------------------------------------------------
Northville, Public Schools,
GO, FGIC
5.000%, 05/01/10 $ 500 $ 525
Oak Park, GO, ABMAC
5.200%, 05/01/06 250 267
Oakland County, Acacia Park Drain
District, GO, MBIA
8.000%, 10/01/00 110 118
Oakland County, Birmingham Drain
District, GO, Ser C
7.500%, 10/01/00 325 347
7.500%, 10/01/01 325 359
Oakland County, Bloomfield Drain
District, GO, Ser C
7.500%, 10/01/00 300 320
7.500%, 10/01/01 275 304
Oakland County, Caddell Drain
District, GO
6.300%, 11/01/99 100 102
Oakland County, Economic Development
Authority, Cranbrook Elderly
Community Project, RB
6.375%, 11/01/14 1,000 1,135
Pewamo, Westphalia School District,
GO, FGIC
5.000%, 05/01/06 275 294
Plymouth-Canton, Community School
District GO, FGIC
4.500%, 05/01/12 1,100 1,101
Plymouth-Canton, Community School
District GO, Ser B, Pre-refunded
@ 101 (B)
6.250%, 05/01/01 1,400 1,500
6.350%, 05/01/01 300 322
Plymouth-Canton, Community School
District GO, Ser C
5.900%, 05/01/02 250 267
6.200%, 05/01/05 250 275
Pontiac, Building Authority, GO,
AMBAC, Pre-refunded @ 101 (A)
6.875%, 04/01/01 200 217
Redford Township, GO, AMBAC
6.750%, 04/01/06 200 220
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
Statement of Net Assets (continued) Golden Oak Family of Funds
January 31, 1999
Face
Michigan Tax Free Bond Amount Value
Portfolio(continued) (000) (000)
- --------------------------------------------------------------------------------
Riverview, Community School
District, GO, Pre-refunded
@ 101.50, FGIC (A)
6.400%, 05/01/02 $ 250 $ 275
Rochester Hills, GO,
Refunding Bond
5.500%, 11/01/06 250 265
5.500%, 11/01/07 250 265
Rochester, Community School
District, GO, MBIA
5.500%, 05/01/06 1,000 1,100
Romeo, Community School District,
GO, Pre-refunded @ 101 (A)
6.900%, 05/01/00 100 105
Royal Oak, City School District,
GO, Pre-refunded @ 101.50 (A)
6.500%, 05/01/01 230 249
Royal Oak, Hospital Finance
Authority, RB,
Pre-refunded @ 100 (A)
7.750%, 01/01/00 120 125
Saline, Building Authority,
GO, AMBAC
7.000%, 07/01/05 100 109
South Lyon, School District, GO
6.100%, 05/01/00 100 103
6.500%, 05/01/05 350 377
State Building Authority
Facilities Program, Ser 1, RB
4.750%, 10/15/18 1,100 1,072
State Building Authority, Ferris
State University, Ser 1, GO,
Pre-refunded @ 101.50 (A)
6.750%, 10/01/00 250 268
State Building Authority, RB, AMBAC
6.750%, 10/01/07 245 270
State Building Authority, Ser B, RB
5.000%, 04/01/01 500 516
State Building Authority, Ser I, RB
6.400%, 10/01/04 650 706
6.500%, 10/01/05 500 544
State Building Authority,
Ser I, RB, AMBAC
6.000%, 10/01/02 300 324
5.500%, 10/01/07 1,000 1,106
State Building Authority,
Ser II, RB
6.000%, 10/01/00 100 104
6.500%, 10/01/05 120 130
State Building Authority,
Ser II, RB, AMBAC
6.250%, 10/01/04 300 327
Face
Michigan Tax Free Bond Amount Value
Portfolio(continued) (000) (000)
- --------------------------------------------------------------------------------
State Building Authority,
Ser II, RB, FSA
6.200%, 10/01/02 $ 250 $ 271
State Financial Assurance
Authority, Underground Storade
Tank, Ser I, RB, AMBAC
5.000%, 05/01/01 1,000 1,034
State Higher Education Facilities
Authority, Thomas M. Cooley
College Project, RB
4.500%, 05/01/04 750 757
State Hospital Authority, Detroit
Medical Center, Ser A, RB
7.100%, 08/15/01 165 175
State Hospital Authority, Henry
Ford Health Center, Ser A, RB
5.100%, 11/15/07 600 637
State Hospital Authority, Oakwood
Hospital Group, RB, FGIC,
Pre-refunded @ 102 (A)
7.000%, 07/01/00 500 536
State Hospital Finance Authority,
Botsford Group, Ser A, RB, MBIA
4.400%, 02/15/04 1,000 1,025
State Hospital Finance Authority,
Detroit Medical Center
Project, RB
6.250%, 08/15/13 675 700
State Hospital Finance Authority,
Detroit Medical Group,
Ser A , RB, AMBAC
5.000%, 08/15/05 2,180 2,319
State Hospital Finance Authority,
McLaren Group, Ser A, RB
5.000%, 10/15/04 1,000 1,051
5.200%, 10/15/06 750 791
State Hospital Finance Authority,
McLaren Group, Ser A, RB,
Escrowed to Maturity
7.200%, 09/15/00 200 213
State Hospital Finance Authority,
Mid Michigan Group,
Ser A, RB, FSA
5.500%, 06/01/08 1,400 1,549
State Hospital Finance Authority,
Sisters of Mercy Project,
RB, MBIA
4.900%, 08/15/05 1,000 1,057
State Hospital Finance Authority,
Sparrow Group, RB, MBIA
5.200%, 11/15/07 480 519
5.300%, 11/15/08 450 492
5.400%, 11/15/09 450 490
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
Statement of Net Assets (continued) Golden Oak Family of Funds
January 31, 1999
Face
Michigan Tax Free Bond Amount Value
Portfolio(continued) (000) (000)
- --------------------------------------------------------------------------------
State Hospital Finance Authority,
St. John Hospital & Medical
Center, RB, AMBAC
5.000%, 05/15/04 $ 750 $ 791
State Hospital Finance Authority,
St. John Hospital,
Ser A, RB, AMBAC
5.650%, 05/15/03 300 323
State Housing Development Authority,
Greenwood Villa Project, RB, FSA
6.500%, 09/15/07 160 173
State Municipal Bond Authority,
Revolving Fund, RB
5.500%, 10/01/06 810 894
5.150%, 10/01/08 1,000 1,069
State Municipal Bond Authority,
Revolving Fund, Ser A, RB
6.000%, 10/01/02 1,000 1,080
State Municipal Bond Authority,
Ser A, RB
6.500%, 05/01/07 250 278
State Power Supply System,
RB, MBIA
5.800%, 11/01/05 400 446
State Public Power Agency, Belle
River Project, Ser A, RB
5.400%, 01/01/01 250 259
5.200%, 01/01/04 300 318
State Public Power Agency, Campbell
Project, Ser A, RB, AMBAC
5.000%, 01/01/03 500 523
5.500%, 01/01/06 500 547
State Roseville School District,
GO, FSA
4.450%, 05/01/06 1,500 1,551
State Sisters Mercy Health System,
RB, FSA
5.700%, 02/15/01 250 261
State Strategic Fund, Ford Motor
Project, Ser A, RB
7.100%, 02/01/06 350 412
State Strategic Fund, NSF Internal
Project, Ser A, RB (A)
5.400%, 08/01/10 1,105 1,157
5.500%, 08/01/11 1,065 1,116
State Trunk Line, Ser A, RB
5.625%, 10/01/03 500 543
State Trunk Line, Ser B-2, RB
5.750%, 10/01/04 350 379
Face
Michigan Tax Free Bond Amount Value
Portfolio(continued) (000) (000)
- --------------------------------------------------------------------------------
State University, Ser A, RB,
Pre-refunded @ 101 (A)
6.125%, 08/15/07 $1,250 $1,366
State Washtenaw County Community
College, Ser A, GO
4.350%, 04/01/05 1,375 1,413
State Washtenaw, Community College,
Ser A, GO
4.900%, 04/01/06 1,200 1,275
Traverse City, Area Public Schools,
Ser I, GO, MBIA
7.250%, 05/01/05 950 1,125
Traverse City, Area Public Schools,
Ser I, GO, Pre-refunded @ 102 (A)
7.000%, 05/01/01 100 109
Traverse City, Area Public Schools,
Ser II, GO, Pre-refunded
@ 101.50 (A)
7.000%, 05/01/01 200 219
Troy, City School District, GO
4.750%, 05/01/08 1,000 1,051
Troy, City School District, GO,
Pre-refunded @ 101.5 (A)
6.000%, 04/01/01 250 268
University of Michigan, Hospital
Revenue, Ser A, RB
5.800%, 12/01/05 400 432
University of Michigan, Major
Capital Projects, Ser B, RB
5.300%, 04/01/05 250 269
Utica, Community Schools, GO
5.375%, 05/01/02 200 211
5.750%, 05/01/07 500 545
Walled Lake, School District,
GO, MBIA
5.500%, 05/01/02 500 529
Walled Lake, School District, Ser II,
GO, Pre-refunded @ 102 (A)
7.100%, 05/01/00 100 107
Warren Woods, Public School System,
Pre-refunded @ 100.50 (A)
7.200%, 06/01/00 100 106
Warren Woods, Building Authority, RB,
Pre-refunded @ 102, FSA (A)
8.750%, 11/01/00 100 111
Waterford Township, School
District, GO
4.850%, 06/01/10 1,450 1,508
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
Statement of Net Assets (continued) Golden Oak Family of Funds
January 31, 1999
Face
Michigan Tax Free Bond Amount Value
Portfolio(continued) (000) (000)
- --------------------------------------------------------------------------------
Wayne County, Airport Authority,
Detroit Metro Airport Project,
Ser A, RB, MBIA
6.400%, 12/01/01 $ 200 $ 216
Wayne County, Building Authority,
Capital Improvements,
Ser A, GO, MBIA
5.625%, 06/01/04 1,000 1,086
Wixom, Public Improvements,
GO, AMBAC
4.750%, 05/01/11 1,000 1,023
Wyandotte, Building Authority, RB,
Escrowed to Maturity
7.000%, 01/01/03 100 112
Wyandotte, Electric Authority,
RB, MBIA
6.250%, 10/01/08 1,700 1,985
Wyandotte, Finance Authority,
Tax Allocation, RB, MBIA
6.100%, 06/01/02 500 539
-------
Total Michigan 88,201
-------
Total Municipal Bonds
(Cost $83,574) 88,201
-------
Cash Equivalent -- 2.6%
SEI Institutional Tax Free
Portfolio 2,303 2,303
-------
Total Cash Equivalent
(Cost $2,303) 2,303
-------
Total Investments -- 100.2%
(Cost $85,877) 90,504
-------
Other Assets and Liabilities, Net -- (0.2%) (160)
-------
Michigan Tax Free Bond Value
Portfolio(concluded) (000)
- --------------------------------------------------------------------------------
Net Assets:
Portfolio Shares of Class I (unlimited
authorization -- no par value)
based on 8,724,159 outstanding
shares of beneficial interest $85,493
Portfolio Shares of Class A (unlimited
authorization -- no par value)
based on 22,190 outstanding
shares of beneficial interest 224
Net Unrealized Appreciation on Investments 4,627
-------
Total Net Assets -- 100.0% $90,344
=======
Net Asset Value, Offering and Redemption
Price Per Share -- Class I $10.33
=======
Net Asset Value and Redemption
Price Per Share -- Class A $10.33
=======
Maximum Offering Price per Share --
Class A ($10.33 / 95.5%) $10.82
=======
- --------------------------------------------------------------------------------
(A) Pre-refunded Security. The pre-refunded date is shown as the maturity date
on the Statement of Net Assets.
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligation Bond
MBIA -- Municipal Bond Insurance Association
RB -- Revenue Bond
Ser -- Series
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
Statement of Net Assets (continued) Golden Oak Family of Funds
January 31, 1999
Face
PRIME OBLIGATION MONEY Amount Value
MARKET PORTFOLIO (000) (000)
- --------------------------------------------------------------------------------
Commercial Paper -- 42.5%
Aircraft -- 2.6%
Rockwell International
5.372%, 02/23/99 $4,200 $ 4,186
-------
Banks -- 2.5%
J.P. Morgan
4.935%, 05/19/99 4,000 3,943
-------
Financial Services -- 19.4%
American General Financial
5.004%, 04/14/99 5,000 4,951
Delaware Funding
5.286%, 03/16/99 3,500 3,478
Island Finance PR
5.309%, 03/30/99 4,200 4,166
Kitty Hawk Funding
5.422%, 02/26/99 1,000 996
National Rural Utilities
5.050%, 03/12/99 2,733 2,718
Park Avenue Receivables
5.645%, 02/04/99 2,315 2,314
Prudential Funding
5.340%, 02/05/99 4,000 3,998
Sears Roebuck Acceptance
5.229%, 03/03/99 4,000 3,983
Variable Funding Capital
5.437%, 02/23/99 4,500 4,485
-------
Total Financial Services 31,089
-------
Food, Beverage & Tobacco -- 5.2%
Archer-Daniels-Midland
5.050%, 03/23/99 4,200 4,171
Coca-Cola Enterprise
5.337%, 03/17/99 4,200 4,173
-------
Total Food, Beverage & Tobacco 8,344
-------
Household Products -- 3.0%
Gillette
4.919%, 02/01/99 4,876 4,876
-------
PRIME OBLIGATION MONEY Amount Value
MARKET PORTFOLIO (continued) (000) (000)
- --------------------------------------------------------------------------------
Mortgage Related -- 8.7%
Centric Capital
5.386%, 02/08/99 $3,000 $ 2,997
CIT Group Holdings
5.569%, 02/08/99 4,000 3,996
Corporate Asset Funding
5.426%, 02/23/99 2,500 2,492
Enterprise Funding
5.310%, 03/10/99 4,500 4,476
-------
Total Mortgage Related 13,961
-------
Printing & Publishing -- 1.1%
New York Times
4.919%, 02/01/99 1,736 1,736
-------
Total Commercial Paper
(Cost $68,135) 68,135
-------
Yankee Commercial Paper -- 17.6%
Automotive -- 2.5%
Daimler-Benz N.A.
5.123%, 03/12/99 4,000 3,978
-------
Banks -- 3.1%
Abbey National PLC
5.009%, 04/06/99 5,000 4,957
-------
Financial Services -- 5.1%
Ford Motor Credit, Europe
5.187%, 04/20/99 4,200 4,154
Rose Funding
5.653%, 02/26/99 4,000 3,985
-------
Total Financial Services 8,139
-------
Mortgage Related -- 5.1%
Greyhawk Funding
5.564%, 02/19/99 4,000 3,989
Mont Blanc Capital
5.494%, 02/26/99 4,200 4,184
-------
Total Mortgage Related 8,173
-------
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
Statement of Net Assets (continued) Golden Oak Family of Funds
January 31, 1999
Face
PRIME OBLIGATION MONEY Amount Value
Market Portfolio(continued) (000) (000)
- --------------------------------------------------------------------------------
Photographic Equipment & Supplies -- 1.8%
Xerox, Europe
4.897%, 07/14/99 $2,920 $ 2,858
-------
Total Yankee Commercial Paper
(Cost $28,105) 28,105
-------
U.S. Government Agency Obligation -- 5.6%
FNMA (A)
4.592%, 02/02/99 9,000 9,000
-------
Total U.S. Government
Agency Obligation
(Cost $9,000) 9,000
-------
Floating Rate Instruments -- 3.8%
Monumental Life (A)
5.320%, 02/01/99 3,000 3,000
Travelers Insurance (A)
5.110%, 03/01/99 3,000 3,000
-------
Total Floating Rate Instruments
(Cost $6,000) 6,000
-------
Certificates of Deposit -- 16.7%
Canadian Imperial Bank
5.550%, 02/10/99 3,000 3,000
Fleet National Bank
4.870%, 06/15/99 3,000 3,000
Harris Bankcorp
5.150%, 02/22/99 4,300 4,300
Key Bank (A)
4.790%, 02/01/99 4,000 4,000
Rabobank Nederland
5.750%, 04/27/99 4,000 3,999
Societe Generale
5.795%, 04/27/99 3,500 3,500
Svenska Handelsbanken
5.740%, 06/01/99 2,000 2,000
Wilmington Trust
5.900%, 04/30/99 3,000 3,003
-------
Total Certificates of Deposit
(Cost $26,802) 26,802
-------
Face
PRIME OBLIGATION MONEY Amount Value
Market Portfolio(continued) (000) (000)
- --------------------------------------------------------------------------------
Yankee Certificate of Deposit -- 2.0%
Bank Austria AG
5.685%, 08/03/99 $3,200 $ 3,208
-------
Total Yankee Certificate of Deposit
(Cost $3,208) 3,208
-------
Corporate Bonds -- 3.8%
Associates Corporation N.A.
7.300%, 06/28/99 2,000 2,017
GMAC, MTN
6.040%, 03/19/99 4,000 4,004
-------
Total Corporate Bonds
(Cost $6,021) 6,021
-------
Bank Notes -- 7.7%
American Express Centurion Bank (A)
4.880%, 02/26/99 4,200 4,200
Comerica Bank (A)
4.886%, 02/16/99 4,000 3,999
PNC Bank (A)
5.180%, 02/01/99 4,200 4,199
-------
Total Bank Notes
(Cost $12,398) 12,398
-------
Total Investment -- 99.7%
(Cost $159,669) 159,669
-------
Other Assets and Liabilities, Net -- 0.3% 505
-------
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
Statement of Net Assets (concluded) Golden Oak Family of Funds
January 31, 1999
PRIME OBLIGATION MONEY Value
MARKET PORTFOLIO(concluded) (000)
- --------------------------------------------------------------------------------
Net Assets:
Portfolio Shares of Class I (unlimited
authorization -- no par value)
based on 153,660,230 outstanding
shares of beneficial interest $153,660
Portfolio Shares of Class A (unlimited
authorization -- no par value)
based on 6,526,025 outstanding
shares of beneficial interest 6,526
Undistributed Net Investment Income 3
Accumulated Net Realized Loss on Investments (15)
--------
Total Net Assets -- 100.0% $160,174
========
Net Asset Value, Offering and Redemption
Price Per Share -- Class I $1.00
========
Net Asset Value, Offering and Redemption
Price Per Share -- Class A $1.00
========
- --------------------------------------------------------------------------------
(A) Variable Rate Security -- The rate reported in the Statement of Net Assets
is the rate in effect on January 31, 1999. The date shown is the next reset
date.
FNMA--Federal National Mortgage Association
MTN -- Medium Term Note
N.A. -- National Association
PLC-- Public Liability Company
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
<TABLE>
<CAPTION>
Statement of Operations (000) Golden Oak Family of Funds
For the Year Ended January 31, 1999
Intermediate-Term Michigan Prime Obligation
Growth Value Income Tax Free Bond Money Market
Portfolio Portfolio Portfolio Portfolio Portfolio
- -------------------------------------------------------------------------------------------------------------------------------
Investment Income:
<S> <C> <C> <C> <C> <C>
Dividend Income $ 371 $ 516 $ -- $ -- $ --
Interest Income 121 63 8,074 4,400 7,706
- -------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 492 579 8,074 4,400 7,706
- -------------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees 142 109 661 442 311
Less: Waiver of Investment
Advisory Fees -- (2) (194) (141) (273)
Investment Sub-Advisory Fees 168 169 -- -- 104
Administration Fees 84 100 264 177 277
Less: Waiver of Administration Fees -- (23) -- -- --
Transfer Agent Fees 27 26 33 30 33
Custodian Fees 4 4 13 8 13
Professional Fees 12 11 38 25 40
Registration Fees 2 4 9 6 10
Distribution Fees(1) 2 1 2 -- 17
Amortization of Deferred
Organizational Costs -- 4 -- 5 --
Trustee Fees 3 3 10 6 10
Printing Expenses 6 6 19 13 21
Other Expenses 2 2 6 4 7
- -------------------------------------------------------------------------------------------------------------------------------
Total Expenses, Net of Waivers 452 414 861 575 570
- -------------------------------------------------------------------------------------------------------------------------------
Net Investment Income 40 165 7,213 3,825 7,136
- -------------------------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss)
on Securities Sold 7,576 3,121 1,046 57 (3)
Net Change in Unrealized
Appreciation on Investments 10,187 1,759 2,764 880 --
Net Realized and Unrealized
Gain (Loss) on Investments 17,763 4,880 3,810 937 (3)
Net Increase in Net Assets Resulting
From Operations $17,803 $5,045 $11,023 $4,762 $7,133
==============================================================================================================================
<FN>
Amounts designated as "--" are either $0 or have been rounded to $0.
(1) All distribution fees are incurred in the Class A Shares.
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
27
<PAGE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets (000) Golden Oak Family of Funds
For the Years Ended January 31,
Intermediate-Term
Growth Value Income
Portfolio Portfolio(1) Portfolio
-------------------------- ------------------------- ----------------------
2/1/98 to 2/1/97 to 2/1/98 to 6/23/97 to 2/1/98 to 2/1/97 to
1/31/99 1/31/98 1/31/99 1/31/98 1/31/99 1/31/98
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
<S> <C> <C> <C> <C> <C> <C>
Net Investment Income $ 40 $ 9 $ 165 $ 124 $ 7,213 $ 6,948
Net Realized Gain (Loss) on Securities Sold 7,576 9,392 3,121 6,415 1,046 (406)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 10,187 (664) 1,759 (4,133) 2,764 3,080
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting
from Investment Operations 17,803 8,737 5,045 2,406 11,023 9,622
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions:
Net Investment Income
Class I (46) -- (181) (100) (7,176) (6,945)
Class A -- -- (1) -- (36) (4)
Realized Net Gains
Class I (6,701) (7,682) (4,673) (4,168) (84) --
Class A (165) (63) (82) (10) (1) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (6,912) (7,745) (4,937) (4,278) (7,297) (6,949)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Class I:
Proceeds from Shares Issued 22,070 10,958 21,407 10,911 43,585 31,561
Value from Shares Issued in Connection with
Acquisition of Common Trust Fund Assets
(See note 8) -- -- -- 26,599 -- --
Reinvestment of Cash Distributions 2 2 13 8 3 1
Cost of Shares Redeemed (19,480) (8,688) (5,916) (4,733) (25,078) (24,986)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class I Share Transactions 2,592 2,272 15,504 32,785 18,510 6,576
- ------------------------------------------------------------------------------------------------------------------------------------
Class A:
Proceeds from Shares Issued 1,986 43 937 53 2,168 2
Reinvestment of Cash Distributions 165 63 82 7 27 3
Cost of Shares Redeemed (1,144) (22) (20) -- (91) (27)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class A Share Transactions 1,007 84 999 60 2,104 (22)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Capital Share Transactions 3,599 2,356 16,503 32,845 20,614 6,554
- ------------------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets 14,490 3,348 16,611 30,973 24,340 9,227
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period 36,547 33,199 30,973 -- 126,000 116,773
- ------------------------------------------------------------------------------------------------------------------------------------
End of Period $51,037 $36,547 $47,584 $30,973 $150,340 $126,000
====================================================================================================================================
Shares Issued and Redeemed
Class I:
Shares Issued 1,523 857 2,364 1,109 4,282 3,195
Shares Issued in Connection with Acquisition
of Common Trust Fund Assets (See note 8) -- -- -- 2,660 -- --
Shares Issued in Lieu of Cash Distributions 1 -- 1 1 -- --
Shares Redeemed (1,323) (600) (612) (455) (2,460) (2,527)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class I Share Transactions 201 257 1,753 3,315 1,822 668
- ------------------------------------------------------------------------------------------------------------------------------------
Class A:
Shares Issued 144 3 106 5 211 --
Shares Issued in Lieu of Cash Distributions 13 6 10 1 3 --
Shares Redeemed (85) (2) (2) -- (9) (3)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class A Share Transactions 72 7 114 6 205 (3)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Capital Shares 273 264 1,867 3,321 2,027 665
====================================================================================================================================
Michigan Prime Obligation
Tax Free Bond Money Market
Portfolio(1) Portfolio
---------------------- ---------------------
2/1/98 to 6/23/97 to 2/1/98 to 2/1/97 to
1/31/99 1/31/98 1/31/99 1/31/98
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Operations:
Net Investment Income $ 3,825 $ 2,223 $ 7,136 $ 7,183
Net Realized Gain (Loss) on Securities Sold 57 137 (3) 8
Net Change in Unrealized Appreciation
(Depreciation) on Investments 880 1,943 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting
from Investment Operations 4,762 4,303 7,133 7,191
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions:
Net Investment Income
Class I (3,820) (2,222) (6,809) (5,163)
Class A (5) (1) (327) (2,020)
Realized Net Gains
Class I (60) (134) -- --
Class A -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (3,885) (2,357) (7,136) (7,183)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Class I:
Proceeds from Shares Issued 25,629 13,619 238,749 220,104
Value from Shares Issued in Connection with
Acquisition of Common Trust Fund Assets
(See note 8) -- 77,580 -- --
Reinvestment of Cash Distributions 1 -- 6 4
Cost of Shares Redeemed (21,945) (7,587) (213,080) (186,643)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class I Share Transactions 3,685 83,612 25,675 33,465
- ------------------------------------------------------------------------------------------------------------------------------------
Class A:
Proceeds from Shares Issued 276 8 16,403 214,687
Reinvestment of Cash Distributions 5 -- 323 274
Cost of Shares Redeemed (65) -- (16,582) (280,270)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class A Share Transactions 216 8 144 (65,309)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Capital Share Transactions 3,901 83,620 25,819 (31,844)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets 4,778 85,566 25,816 (31,836)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period 85,566 -- 134,358 166,194
- ------------------------------------------------------------------------------------------------------------------------------------
End of Period $90,344 $85,566 $160,174 $134,358
====================================================================================================================================
Shares Issued and Redeemed
Class I:
Shares Issued 2,515 1,349 238,749 220,104
Shares Issued in Connection with Acquisition
of Common Trust Fund Assets (See note 8) -- 7,758 -- --
Shares Issued in Lieu of Cash Distributions -- -- 6 4
Shares Redeemed (2,148) (750) (213,080) (186,643)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class I Share Transactions 367 8,357 25,675 33,465
- ------------------------------------------------------------------------------------------------------------------------------------
Class A:
Shares Issued 27 1 16,403 214,687
Shares Issued in Lieu of Cash Distributions -- -- 323 274
Shares Redeemed (6) -- (16,582) (280,270)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class A Share Transactions 21 1 144 (65,309)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Capital Shares 388 8,358 25,819 (31,844)
====================================================================================================================================
<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>
28 and 29
<PAGE>
Financial Highlights
For a Share Outstanding Throughout the Period
For the Periods Ended January 31,
<TABLE>
<CAPTION>
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>
1999 $12.66 $ 0.02 $ 5.88 $(0.02) $(2.38) $16.16 51.98% $ 49,497 1.08%
1998 12.66 -- 3.12 -- (3.12) 12.66 25.85 36,240 1.07
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
Growth Portfolio Class A
1999 $12.51 $ 0.02 $ 5.74 $ -- $(2.38) $15.89 51.45% $ 1,540 1.33%
1998 12.57 (0.01) 3.07 -- (3.12) 12.51 25.56 307 1.32
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
Value Portfolio Class I
1999 $ 9.33 $ 0.04 $ 0.90 $(0.04) $(1.06) $ 9.17 12.63% $ 46,484 1.10%
1998(1) 10.00 0.04 0.86 (0.04) (1.53) 9.33 9.15 30,922 1.10*
Value Portfolio Class A
1999 $ 9.32 $ 0.03 $ 0.87 $(0.02) $(1.06) $ 9.14 12.19% $ 1,100 1.35%
1998(1) 10.00 0.02 0.86 (0.03) (1.53) 9.32 8.97 51 1.35*
Intermediate-Term Income Portfolio Class I
1999 $10.04 $ 0.60 $ 0.29 $(0.60) $(0.01) $10.32 8.60% $148,165 0.65%
1998 9.83 0.56 0.21 (0.56) -- 10.04 8.07 125,936 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
Intermediate-Term Income Portfolio Class A
1999 $10.04 $ 0.57 $ 0.28 $(0.57) $(0.01) $10.31 8.23% $ 2,175 0.90%
1998 9.83 0.53 0.21 (0.53) -- 10.04 7.78 64 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
Michigan Tax Free Bond Portfolio Class I
1999 $10.24 $ 0.48 $ 0.10 $(0.48) $(0.01) $10.33 5.40% $ 90,115 0.65%
1998(1) 10.00 0.27 0.26 (0.27) (0.02) 10.24 5.35 85,556 0.65*
Michigan Tax Free Bond Portfolio Class A
1999 $10.24 $ 0.46 $ 0.09 $(0.46) $(0.01) $10.33 5.17% $ 229 0.90%
1998(1) 10.00 0.27 0.26 (0.27) (0.02) 10.24 5.31 10 0.90*
=============================================================================================================================
</TABLE>
RATIO OF NET
RATIO OF RATIO OF INVESTMENT
NET EXPENSES INCOME
INVESTMENT TO AVERAGE TO AVERAGE
INCOME NET ASSETS NET ASSETS PORTFOLIO
TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER
NET ASSETS WAIVERS) WAIVERS) RATE
- --------------------------------------------------------------------------------
Growth Portfolio Class I
1999 0.10% 1.08% 0.10% 70.60%
1998 0.03 1.07 0.03 131.54
1997 0.04 1.11 0.03 130.69
1996 0.62 1.17 0.55 189.48
1995 0.74 1.24 0.60 84.00
Growth Portfolio Class A
1999 (0.21)% 1.33% (0.21)% 70.60%
1998 (0.21) 1.32 (0.21) 131.54
1997 (0.20) 1.36 (0.21) 130.69
1996 0.30 1.42 0.23 189.48
1995 0.49 1.49 0.35 84.00
Value Portfolio Class I
1999 0.44% 1.17% 0.37% 172.09%
1998(1) 0.72* 1.28* 0.54* 90.97
Value Portfolio Class A
1999 0.20% 1.42% 0.13% 172.09%
1998(1) 0.31* 1.53* 0.13* 90.97
Intermediate-Term Income Portfolio Class I
1999 5.46% 0.80% 5.31% 76.46%
1998 5.66 0.80 5.51 60.78
1997 5.48 0.80 5.33 34.67
1996 5.68 0.84 5.49 121.47
1995 5.21 0.86 5.00 141.51
Intermediate-Term Income Portfolio Class A
1999 5.15% 1.05% 5.00% 76.46%
1998 5.40 1.05 5.25 60.78
1997 5.20 1.05 5.05 34.67
1996 5.49 1.09 5.30 121.47
1995 4.96 1.11 4.75 141.51
Michigan Tax Free Bond Portfolio Class I
1999 4.32% 0.81% 4.16% 6.55%
1998(1) 4.41* 0.82* 4.24* 9.77
Michigan Tax Free Bond Portfolio Class A
1999 4.07% 1.06% 3.91% 6.55%
1998(1) 4.15* 1.07* 3.98* 9.77
================================================================================
Amounts designated as "--" are either $0 or have been rounded to $0.
* Annualized
+ Total return does not reflect the sales charge on Class A shares.
(1) Commenced operations June 23, 1997. Total return is for the period indicated
and has not been annualized.
The accompanying notes are an integral part of the financial statements.
30
<PAGE>
<TABLE>
<CAPTION>
Golden Oak Family of Funds
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
- -----------------------------------------------------------------------------------------------------------------------------
Prime Obligation Money Market Portfolio Class I
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1999 $ 1.00 $0.06 $ -- $(0.06) $ -- $ 1.00 5.30% $153,649 0.40%
1998 1.00 0.05 -- (0.05) -- 1.00 5.41 127,977 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
Prime Obligation Money Market Portfolio Class A
1999 $ 1.00 $0.05 $ -- $(0.05) $ -- $ 1.00 5.03% $ 6,525 0.65%
1998 1.00 0.05 -- (0.05) -- 1.00 5.15 6,381 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
=============================================================================================================================
</TABLE>
RATIO OF RATIO OF RATIO OF NET
NET EXPENSES INVESTMENT INCOME
INVESTMENT TO AVERAGE TO AVERAGE
INCOME NET ASSETS NET ASSETS
TO AVERAGE (EXCLUDING (EXCLUDING
NET ASSETS WAIVERS) WAIVERS)
- --------------------------------------------------------------------------------
Prime Obligation Money Market Portfolio Class I
1999 5.17% 0.60% 4.97%
1998 5.29 0.59 5.10
1997 5.08 0.68 4.80
1996 5.60 0.70 5.30
1995 4.20 0.68 3.92
Prime Obligation Money Market Portfolio Class A
1999 4.92% 0.85% 4.72%
1998 4.99 0.84 4.80
1997 4.83 0.93 4.55
1996 5.31 0.95 5.01
1995 3.95 0.93 3.67
================================================================================
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
31
<PAGE>
Notes to Financial Statements Golden Oak Family of Funds
January 31, 1999
1. Organization:
The Golden Oak Family of Funds are sepa- rate 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 Investments Mutual Funds Services (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"). 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. The financial
statements have been prepared in accordance with generally accepted accounting
principles which require the use of management's estimates. Actual results could
differ from these estimates.
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. 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 has been made 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.
32
<PAGE>
Notes to Financial Statements (continued) Golden Oak Family of Funds
January 31, 1999
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 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 PerShare -- 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.
Distributions -- 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 was 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, as of January 31, 1999. The
Administrator agreed to waive a portion of the fee for the year ended January
31, 1999.
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 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 first $50 million, .39% of the next $50 million, and .34%
of any amount above $100 million 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 first $500
33
<PAGE>
Notes to Financial Statements (continued) Golden Oak Family of Funds
January 31, 1999
million and .28% of any amount above $500 million 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 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 first $500 million and .02% of any
amount above $500 million 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 sub-advisory agreements dated June 23, 1997, and
May 28, 1998 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. These costs include legal fees of approximately $14,400 for
organizational work performed by a law firm of which two officers of the Trust
and a trustee of the Trust are partners.
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.
The Trust has paid legal fees to a law firm of which two officers of the Trust
and a trustee of the Trust are partners.
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 January 31, 1999, were
as follows:
34
<PAGE>
Notes to Financial Statements (continued) Golden Oak Family of Funds
January 31, 1999
Intermediate- Michigan
Term Tax Free
Growth Value Income Bond
(000) (000) (000) (000)
- --------------------------------------------------------------------------------
Purchases:
U.S. Government $ -- $ -- $58,882 $ --
Other 28,023 75,010 48,123 9,034
Sales:
U.S. Government $ -- $ -- $63,248 $ --
Other 31,975 62,953 27,823 5,648
At January 31, 1999, 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 January 31,
1999 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 $16,851 $11,178 $5,287 $4,631
Aggregate Gross
Unrealized
Depreciation (624) (836) (164) (4)
------- ------- ------ ------
Net Unrealized
Appreciation $16,227 $10,342 $5,123 $4,627
======= ======= ====== ======
At January 31, 1999, the Portfolios had available realized capital losses to
offset future net capital gains as follows through fiscal year ending:
2005 2007
(000) (000)
- --------------------------------------------------------------------------------
Prime Obligation $12 $ 3
The Golden Oak Intermediate-Term Income Portfolio utilized $985,415 of capital
losses incurred in prior years to offset net capital gains recognized in the
fiscal year ended January 31, 1999.
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.
The Golden Oak Michigan Tax Free Bond Portfolio invests in debt instruments of
municipal issuers. The issuers' ability to meet their obligations may be
affected by economic developments in a specific state or region. The Golden Oak
Michigan Tax Free Bond invests primarily in obligations located in Michigan.
35
<PAGE>
Notes to Financial Statements (concluded) Golden Oak Family of Funds
January 31, 1999
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. Shareholder Voting Results (Unaudited):
There was a Special Meeting of the Arbor Fund on behalf of the Golden Oak Value
Portfolio on September 3, 1998 to approve a new Investment Sub-Advisory
Agreement by and between Citizens Bank and Systematic Financial Management, L.P.
The voting results were as follows:
Shares Voted % of Voted % of Total
------------ ---------- ----------
For 3,441,043 99.79% 97.38%
Against 0 0% 0%
Abstain 7,237 0.21% 0.20%
36
<PAGE>
<TABLE>
<CAPTION>
Notice To Shareholders
of
The Golden Oak Family of Funds
(Unaudited)
For the fiscal year ended January 31, 1999, each Portfolio is designating long term capital gains, qualifying dividends, and
exempt income with regard to distributions paid during the year as follows: For shareholders that do not have a January 31, 1999
tax year end, this notice is for informational use only.
20% Rate
Long Term Ordinary Tax Exempt
Capital Gains Income Income Total
Distributions Distributions Distributions Distributions Qualifying
Portfolio (Tax Basis) (Tax Basis) (Tax Basis) (Tax Basis) Dividends(1)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Growth Portfolio 69% 31% 0% 100% 53%
Value Portfolio 96% 4% 0% 100% 97%
Intermediate-Term Income Portfolio 1% 99% 0% 100% 0%
Michigan Tax Free Bond Portfolio 2% 0% 98% 100% 0%
Prime Obligation Money Market Portfolio 0% 100% 0% 100% 0%
===========================================================================================================================
Please consult your tax advisor for proper treatment of this information.
<FN>
(1) Qualifying dividends represent dividends which qualify for the corporate dividends received deduction.
(2) None of the Golden Oak Portfolios meet California, Connecticut or New York's statutory requirements to pass through
exempt interest dividends from U.S. Government obligations.
</FN>
</TABLE>
37
<PAGE>
Notes
<PAGE>
TheGolden Oak Family of Funds
Growth Portfolio
Value Portfolio
Intermediate-TermIncome 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-003-03
