ANNUAL REPORT
[LOGO OMITTED]
JANUARY 31, 2000
THE ARBOR FUND
[graphic omitted]
Advised by
CITIZENS BANK
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[BLANK PAGE]
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TABLE OF CONTENTS
Letter to Shareholders ...................................................... 2
Managers' Discussions of Fund Performance ................................... 4
Report of Independent Accountants ........................................... 16
Statements of Net Assets .................................................... 17
Statement of Operations ..................................................... 37
Statement of Changes in Net Assets .......................................... 38
Financial Highlights ........................................................ 40
Notes to Financial Statements ............................................... 42
Notice to Shareholders ...................................................... 47
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Dear Shareholder:
1999 was another banner year for U.S. stocks - or was it? Certainly the popular
indexes had strong performance numbers, but a closer look shows that a small
number of stocks accounted for most of the investment return.
[Bar Chart Graphic comparing winners and losers in the stock market omitted]
Plot points are as follows:
New York Stock Exchange - Winners 38% Losers 61%
S&P 500 - Winners 46% Losers 54%
Nasdaq composite - Winners 51% Losers 49%
Russell 2000 - Winners 44% Losers 56%
Source: Citizens Bank Research
Many investment professionals are concerned that the losers greatly outnumbered
the winners (New York Stock Exchange), but the performance gap between the
groups was so great that it gave the appearance of a healthy market.
Where do we go from here? History suggests that a wide disparity between the
"haves" and the "have nots" is usually corrected by punishing the big winners.
The technology sector, particularly those companies with significant Internet
exposure, will be vulnerable. Even though earnings - or the absence of earnings
- - did not matter in 1999, they will be critical to both stock market success and
business survival in the future.
2
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Interest rates worked their way irregularly higher last year as the expected
moderation of economic growth failed to materialize. The Federal Reserve
validated the higher bond yields by tightening monetary policy three times,
reversing their "easing" action during the liquidity crisis in 1998. More
tightening is expected during the first half of this year, and with continued
strong economic performance, we still lack the fundamental basis for a sustained
move to lower interest rates.
On a more positive note, we expect the Federal Reserve's resolve to keep
inflation low will result in a noticeable slowing of U.S. economic growth within
the next six months or so. While investors wait for this scenario to unfold,
yield levels on bonds offer excellent value, with the potential for capital
appreciation in coming months.
Two additional investment choices were added to the Golden Oak family of funds
in 1999. The Tax-Managed Portfolio includes the stocks of large U.S. companies
and is best suited for investors who wish to maximize the after-tax return on
their equity investment. The Small Cap Value Portfolio invests in the stocks of
small companies - mainly those with stock market capitalization less than $2
billion. The portfolio manager seeks long-term capital appreciation by focusing
on those companies with little debt, cash flow growth and a "catalyst" which
should attract investors.
Plans for the year 2000 include the introduction of an international equity fund
in mid-year. Adding the eighth Golden Oak portfolio is one more step in a
continuing process to serve your investment needs with a diversified selection
of choices.
Thank you for deciding to entrust us with a portion of your financial assets.
As your fellow shareholders, we reiterate our commitment to justify your
confidence in our stewardship.
Sincerely,
/s/ signature omitted
Dana A. Czmer
Chief Investment Officer
Citizens Bank
3
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MANAGERS' DISCUSSION OF FUND PERFORMANCE
Fiscal Year Ended January 31, 2000
GOLDEN OAK GROWTH PORTFOLIO
For the fiscal year ending January 31, 2000, the Golden Oak Growth Portfolio
benefited from superior stock selection and risk control enhancements. Class I
shares returned 30.67% and Class A shares returned 30.23%, as compared to 19.8%
for the Russell 1000 Growth Index for the fiscal year.
Against the backdrop of the U.S. economy's continued expansion, subdued
inflation and improving economies abroad, 1999 capped the best decade ever for
U.S. stock investors. Throughout the 1990s, the S&P 500 Index delivered its best
returns compared to any decade in history, climbing 18.2% on an annualized
basis. During the last 12 months, investors exhibited a marked preference for
growth stocks, especially technology-related issues. For the Golden Oak Growth
portfolio, stock selection - especially within the technology sector - was the
greatest contributor to returns.
Amid the continued strength in the U.S. economy, the Federal Reserve Board
raised short-term interest rates by a quarter-percentage point three times in
1999, reversing 1998's loose monetary policy. The interest-rate increases were
aimed at combating inflationary pressures in the economy.
Following 1999's record-breaking ascent, the U.S. equity market succumbed to
selling pressures in January, sparked by worries over higher interest rates and
inflation. The latest evidence of the U.S. economy's enduring strength,
reflected in the stronger-than-expected gross domestic product growth,
employment costs and consumer spending in 1999, raised the specter of inflation.
Reviewing the performance attribution for the Portfolio relative to the Russell
1000 Growth Index for the fiscal year, stock selection in the technology,
healthcare services, retail trade and consumer non-durables sectors (accounting
for approximately 70% of the portfolio's holdings for the fiscal year)
contributed to the portfolio's performance. Holdings within these sectors
include Qualcomm, Colgate Palmolive, Siebel Systems and Wal- Mart Stores. Our
bottom-up approach is very responsive to changes in the market and drives the
portfolio toward issues demonstrating our investment criteria of positive
fundamental change, sustainability, and timeliness.
4
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MANAGERS' DISCUSSION OF FUND PERFORMANCE
Fiscal Year Ended January 31, 2000
- ------------------------- INVESTMENT PERFORMANCE ANALYSIS ----------------------
Annualized Annualized Annualized
One Year 3 Year 5 year Inception
Return(1) Return(1) Return(1) to Date(1)
- --------------------------------------------------------------------------------
Class I 30.67% 35.71% 29.74% 21.00%
- --------------------------------------------------------------------------------
Class A 30.23% 35.29% 29.37% 22.70%
- --------------------------------------------------------------------------------
Class A, with load(2) 22.74% 32.64% 27.84% 21.61%
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
[Line Chart Omitted]
plot points are as follows:
Golden Oak Gorwth Fund, Class I Frank Russell 1000 Growth Index
Feb-93 10,000 10,000
Jan 94 11,048 10,820
Jan 95 10,469 11,089
Jan 96 12,439 15,393
Jan 97 15,398 19,625
Jan 98 19,378 24,645
Jan 99 29,451 35,138
Jan 00 38,483 42,124
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
Golden Oak Gorwth Fund, Class A Frank Russell 1000 Growth Index
Jun 93 9,425 10,000
Jan 94 10,519 10,783
Jan 95 9,913 11,050
Jan 96 11,740 15,340
Jan 97 14,506 19,557
Jan 98 18,213 24,560
Jan 99 27,584 35,017
Jan 00 35,923 41,979
1For the period ended January 31, 2000. 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.
2Performance of the Class A shares reflects the maximum front end sales charge
of 5.75%.
5
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MANAGERS' DISCUSSION OF FUND PERFORMANCE
Fiscal Year Ended January 31, 2000
GOLDEN OAK VALUE PORTFOLIO
As of January 31, 2000, the Class I shares of the Golden Oak Value Portfolio had
a total return of 8.92% and Class A shares had a total return of 8.61%, as
compared to 3.02% for the benchmark Russell 1000 Value Index. Performance versus
the benchmark was helped by the rebound in basic materials, energy groups, the
continued strength in technology and the under-weighting in consumer staples.
As of January 31, 2000, the Golden Oak Value Portfolio was over-weighted in
technology and basic material sectors, and under-weighted 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 19 times estimated 1999 earnings, exceeded consensus estimates by 3%
in the latest reported quarter, and is estimated to grow earnings per share by
25% over the next 12 months.
6
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MANAGERS' DISCUSSION OF FUND PERFORMANCE
Fiscal Year Ended January 31, 2000
- ----------------------- 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* 8.92% 14.65% 20.39% 13.72% 11.81%+
- --------------------------------------------------------------------------------
SYNTHETIC CLASS A* 8.61% 14.28% 19.98% 13.36% 11.45%+
- --------------------------------------------------------------------------------
SYNTHETIC CLASS A,
WITH LOAD*(2) 2.34% 12.05% 18.56% 12.69% 8.95%+
- --------------------------------------------------------------------------------
+Actual, not Synthetic
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
[Line Chart Omitted]
plot points are as follows:
Golden Oak Value Golden Oak Value Frank Russell Lipper Lipper
Portfolio, Portfolio, 1000 Growth Growth
Synthetic Synthetic Value & Income & Income
Class I Class A Index Average Index
Jan-90 10,000 9,425 10,000 10,000 10,000
Jan-91 10,212 9,591 10,244 10,612 10,482
Jan-92 12,043 11,285 12,233 13,095 12,719
Jan-93 13,469 12,582 14,304 14,452 14,176
Jan-94 14,991 13,966 17,077 16,530 16,550
Jan-95 14,298 13,288 16,622 16,148 16,184
Jan-96 19,356 17,925 23,007 21,485 21,516
Jan-97 23,997 22,130 28,455 26,498 26,340
Jan-98 29,478 27,110 36,169 32,290 34,054
Jan-99 33,201 30,414 42,763 37,980 36,682
Jan-00 36,163 33,033 44,055 40,623 39,055
*Synthetic Total Return information represents the actual class performance
blended with Common Trust Fund historical data adjusted for expenses.
1For the period ended January 31, 2000. Past performance of the Portfolio is not
predictive of future performance. Individual Class I and A shares were offered
beginning June 23, 1997.
2Performance of the Class A shares reflects the maximum front end sales charge
of 5.75%.
7
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MANAGERS' DISCUSSION OF FUND PERFORMANCE
Fiscal Year Ended January 31, 2000
GOLDEN OAK TAX-MANAGED EQUITY PORTFOLIO
The Golden Oak Tax-Managed portfolio opened May 1, 1999. The investment
objective of the portfolio is to maximize after-tax returns with the S&P 500 as
the benchmark. The investment process utilized in the management of the
Tax-Managed Equity Portfolio is bottom up in nature, focusing on individual
stock selection and tax efficiency as the source of portfolio construction.
Through quantitative fundamental analysis, the portfolio is constructed stock by
stock, selecting securities that meet the following criteria:
Accelerating Operating Earnings
Rising Investor Expectations
Fundamental Quality (Cash Flow)
Positive Price Behavior
Since inception through January 31, 2000, Class A shares had a cumulative total
return of 2.77% and Class I shares had a cumulative total return of 3.03%, as
compared to the S&P 500 return of 5.42%. Reviewing the performance attribution
for the portfolio relative to the S&P 500 since the inception of the portfolio,
producers/manufacturing, utilities and consumer durables contributed to the
portfolio's performance. Holdings within these sectors contributing to the
portfolio's performance include General Electric, GTE Corp. and Air Products &
Chemical.
Based on the fundamental strength of holdings in the portfolio, we remain
optimistic and are encouraged by the continued growth in corporate profits in
2000. Amid changing conditions in the market, selectivity remains key to finding
attractive companies. Applying our bottom-up stock selection, we continue to
identify attractive companies in various sectors of the market.
8
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MANAGERS' DISCUSSION OF FUND PERFORMANCE
Fiscal Year Ended January 31, 2000
- ------------------------ INVESTMENT PERFORMANCE ANALYSIS -----------------------
ANNUALIZED ANNUALIZED ANNUALIZED CUMULATIVE
ONE YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION
RETURN(1) RETURN(1) RETURN(1) RETURN(1) TO DATE(1)
- --------------------------------------------------------------------------------
SYNTHETIC CLASS I* 6.46% 18.66% 23.09% 16.13% 3.03%+
- --------------------------------------------------------------------------------
SYNTHETIC CLASS A* 6.07% 18.25% 22.72% 15.78% 2.77%+
- --------------------------------------------------------------------------------
SYNTHETIC CLASS A,
WITH LOAD*(2) 0.00% 15.95% 21.29% 15.09% -3.14%+
- --------------------------------------------------------------------------------
+Actual, Cumulative Inception to Date, not Synthetic
Comparison of change in the value of a $10,000 investment in the Golden Oak
Tax-Managed Equity Portfolio, Synthetic Class I or Synthetic Class A,
versus the S&P 500 Composite Index
[Line Chart Omitted]
plot points are as follows:
Golden Oak Golden Oak
Tax-Managed Tax-Managed
Equity Fund, Equity Fund, S&P 500
Synthetic Class I Synthetic Class A Composite Index
Jan-90 10,000 9,425 10,000
Jan-91 10,682 10,026 10,838
Jan-92 12,856 12,026 13,298
Jan-93 14,359 13,410 14,704
Jan-94 15,823 14,759 16,590
Jan-95 15,785 14,657 16,678
Jan-96 21,326 19,741 23,119
Jan-97 26,700 24,673 29,207
Jan-98 32,464 29,884 37,063
Jan-99 41,899 38,457 49,113
Jan-00 44,605 40,792 54,196
*Synthetic Total Return information represents the actual class performance
blended with Common Trust Fund historical data adjusted for expenses.
1For the period ended January 31, 2000. Past performance of the Portfolio is not
predictive of future performance. Individual Class I and A shares were offered
beginning April 30, 1999.
2Performance of the Class A shares reflects the maximum front end sales charge
of 5.75%.
9
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MANAGERS' DISCUSSION OF FUND PERFORMANCE
Fiscal Year Ended January 31, 2000
GOLDEN OAK SMALL CAP VALUE PORTFOLIO
As of January 31, 2000, the Golden Oak Small Cap Value Portfolio was
over-weighted in consumer cyclicals and technology and under-weighted in
utilities and transportation. Sector and industry weightings relative to the
benchmark Russell 2000 Value Index reflect a company's ability to generate free
cash flow relative to valuation and are purely a function of bottom-up
fundamental analysis.
According to First Call, the average stock in the Golden Oak Small Cap Value
Portfolio trades at 10 times estimated 2000 earnings, and is estimated to grow
earnings per share by 7% over the next twelve (12) months.
For the 5 month period ending January 31, 2000, the Fund started in September
1999, the Class A shares of the Golden Oak Small Cap Value Portfolio had a
cumulative total return of -4.42% and the Class I shares had a total cumulative
return of -4.33% as compared to -3.1% for the benchmark Russell 2000 Value and
16.57% for the Russell 2000. Performance was constrained versus the Russell 2000
Value because of under-performance by a handful of stocks in January.
Performance was constrained versus the Russell 2000 because of the substantial
out performance of a handful of stocks that caused the substantial disparity in
performance between the Russell 2000 Value and the Russell 2000.
10
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MANAGERS' DISCUSSION OF FUND PERFORMANCE
Fiscal Year Ended January 31, 2000
- ----------------------- INVESTMENT PERFORMANCE ANALYSIS ----------------------
CUMULATIVE
INCEPTION
TO DATE(1)
- -----------------------------------------
CLASS I -4.33%
- -----------------------------------------
CLASS A -4.42%
- -----------------------------------------
CLASS A, WITH LOAD(2) -9.91%
- -----------------------------------------
Comparison of change in the value of a $10,000 investment in the Golden Oak
Small Cap Value Portfolio, Synthetic Class I or Synthetic Class A,
versus the Russell 2000 Value Index
[Line Chart Omitted]
plot points are as follows:
Golden Oak Golden Oak
Small Cap Small Cap
Value Fund, Value Fund, Russell 2000
Class I Class A Value Index
Jan-99 10,000 9,425 10,000
Jan-00 9,893 9,319 9,887
1For the period ended January 31, 2000. Past performance of the Portfolio is not
predictive of future performance. Individual Class I and A shares were offered
beginning September 1, 1999.
2Performance of the Class A shares reflects the maximum front end sales charge
of 5.75%.
11
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MANAGERS' DISCUSSION OF FUND PERFORMANCE
Fiscal Year Ended January 31, 2000
GOLDEN OAK INTERMEDIATE-TERM INCOME PORTFOLIO
For the 12-month period ended January 31, 2000 the Class I Shares of the Golden
Oak Intermediate-Term Income Portfolio had a total return of -4.07% as compared
to the benchmark Lehman Brothers Intermediate Government /Corporate Bond Index*
measure of -0.53% and the Lehman Brothers Government/Corporate Bond Index (the
Index) measure of -2.87%. The SEC 30-day yield for Class I Shares as of January
31, 2000 was 6.50%. Class A Shares had a total return of -4.22%. The SEC 30-day
yield for Class A Shares as of January 31, 2000 was 5.96%.
1999 was a rough year for fixed income markets as market psychology gradually
changed from NO inflation to WORRIED about inflation. Perceptions, rather than
hard data, were driving the bond market.
The year began with interest rates near their historic lows and the forecast was
for stable to declining rates throughout the year. Fund duration was set at 15%
longer than the Index. The reasons for the forecast were twofold. First,
economic growth had to slow down. The American consumer couldn't carry the
economy for a sixth straight year and bonds would benefit from any slowdown.
Second, there was no meaningful inflation in sight. Americans were experiencing
record low oil prices, low mortgage rates and nonexistent price and wage growth.
Also, Y2K worries created an uncertainty that a flight to quality and safety
might cause rates to decline at year-end.
As the year progressed, each report of economic strength was followed by a move
up in interest rates, regardless of any inflation friendly reports. The yield on
the 10 year treasury note rose 100 basis points by mid-year and another 50 basis
points in the second half. The Y2K rush to treasury bonds in the 4th quarter
never developed. In the end, the Fund's longer than the Index duration penalized
performance in a rising interest rate environment.
Inflation worries persist. Interest rates are expected to rise until the Fed
raises short term rates enough to slow the economy. Most forecasts expect that
to occur in the second half of the year. The Fund's duration is 4% shorter than
the Index as the new year begins.
* Going forward the Fund's benchmark will be the Lehman Brothers
Government/Corporate Bond Index to give a better comparison for the Fund's
investment strategy.
12
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MANAGERS' DISCUSSION OF FUND PERFORMANCE
Fiscal Year Ended January 31, 2000
- ----------------------- INVESTMENT PERFORMANCE ANALYSIS ------------------------
ANNUALIZED ANNUALIZED ANNUALIZED
ONE YEAR 3 YEAR 5 YEAR INCEPTION
RETURN(1) RETURN(1) RETURN(1) TO DATE(1)
- --------------------------------------------------------------------------------
CLASS I -4.07% 4.03% 5.38% 4.58%
- --------------------------------------------------------------------------------
CLASS A -4.22% 3.77% 5.11% 4.18%
- --------------------------------------------------------------------------------
CLASS A, WITH LOAD(2) -8.56% 2.20% 4.15% 3.45%
- --------------------------------------------------------------------------------
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 and the
Lehman Brothers Government/Corporate Index
[Line Chart Omitted]
plot points are as follows:
Lehman
Brothers
Golden Oak Intermediate Lehman Brothers
Intermediate-Term Government/ Government/
Income Portfolio, Corporate Corporate
Class I Index Index
Feb-93 10,000 10,000 10,000
Jan-94 10,569 10,622 10,807
Jan-95 10,399 10,475 10,804
Jan-96 11,733 11,981 12,718
Jan-97 12,004 12,409 13,022
Jan-98 12,972 13,509 14,477
Jan-99 14,088 14,535 15,738
Jan-00 13,515 14,458 15,286
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 and the Lehman Brothers
Government/Corporate Index
[Line Chart Omitted]
plot points are as follows:
Lehman
Brothers
Golden Oak Intermediate Lehman Brothers
Intermediate-Term Government/ Government/
Income Portfolio, Corporate Corporate
Class A Index Index
Jun-93 9,550 10,000 10,000
Jan-94 9,860 10,356 10,456
Jan-95 9,678 10,213 10,453
Jan-96 10,891 11,682 12,305
Jan-97 11,114 12,099 12,599
Jan-98 11,979 13,171 14,007
Jan-99 12,965 14,172 15,227
Jan-00 12,418 14,096 14,790
1FOR THE PERIOD ENDED JANUARY 31, 2000. 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.
2PERFORMANCE OF THE CLASS A SHARES REFLECTS THE MAXIMUM FRONT END SALES CHARGE
OF 4.50%.
13
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MANAGERS' DISCUSSION OF FUND PERFORMANCE
Fiscal Year Ended January 31, 2000
GOLDEN OAK MICHIGAN TAX FREE BOND PORTFOLIO
For the 12-month period ended January 31, 2000, Class I shares of the Golden Oak
Michigan Tax Free Bond Portfolio had a total return of -1.79% as compared to the
Merrill Lynch Intermediate Municipal Index's (the "Index") -1.72% total return.
The SEC 30-day yield for Class I shares as of January 31, 2000 was 4.39%. Class
A shares had a total return of -2.03% for the same period and an SEC 30-day
yield of 3.95% on January 31, 2000.
For the fourth quarter of 1999, the Class I shares' return was -0.11% versus a
return of 0.13% for the Index. The Class A shares returned 0.03% for this
period.
In 1999 the duration of the portfolio was reduced by about 3% in the second half
of the year. The Index duration increased by 6% in the same time period. As a
result the portfolio's duration declined from 92% of the Index's duration in the
first half of 1999 to 84% during the second half. Michigan municipal rates
jumped in late May-June and continued to climb the rest of the year and the
shorter duration of the portfolio produced returns that placed the Fund at the
very top of the Lipper Michigan Municipal Debt Funds Universe* for the trailing
1 year period. In addition, the Fund is currently ranked in the top echelon of
the Morningstar Muni Single State Intermediate Category.**
Currently rates are expected to continue to rise until there are perceptions
that the Fed has raised them enough to slow the economy from its hyper-speed
rate of growth. Most forecasts are for this slowing to occur in the second half
of the year. But with the experience of the last several years, we feel it may
pay to wait until you see it before taking action.
* The Golden Oak Michigan Tax Free Bond Institutional and Retail Portfolios were
ranked 1 and 2 out of 48 Funds, respectively, in the Lipper Michigan Municipal
Debt Funds Universe for the one year period ending 1/31/2000.
** The Golden Oak Michigan Tax Free Bond Institutional Portfolio was ranked 4
out of 255 Funds in the Morningstar Muni Single State Intermediate Category
for the one year period ending 1/31/2000.
MORNINGSTAR PROPRIETARY RATINGS REFLECT HISTORICAL RISK-ADJUSTED PERFORMANCE AS
OF (01/31/2000). THE RATINGS ARE SUBJECT TO CHANGE EVERY MONTH. PAST PERFORMANCE
IS NO GUARANTEE OF FUTURE RESULTS. MORNINGSTAR RATINGS ARE CALCULATED FROM THE
FUND'S THREE-, FIVE-, AND TEN-YEAR AVERAGE ANNUAL RETURNS (IF APPLICABLE) IN
EXCESS OF 90-DAY TREASURY BILL RETURNS WITH APPROPRIATE FEE ADJUSTMENTS, AND A
RISK FACTOR THAT REFLECTS FUND PERFORMANCE BELOW 90 DAY T-BILL RETURNS.
14
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MANAGERS' DISCUSSION OF FUND PERFORMANCE
Fiscal Year Ended January 31, 2000
- ------------------------ 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* -1.79% 3.58% 4.86% 5.55% 3.36%+
- --------------------------------------------------------------------------------
SYNTHETIC CLASS A* -2.03% 3.37% 4.61% 5.28% 3.17%+
- --------------------------------------------------------------------------------
SYNTHETIC CLASS A,
WITH LOAD*(2) -6.47% 1.81% 3.64% 4.79% 1.38%+
- --------------------------------------------------------------------------------
+Actual, not synthetic
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
[Line Chart Omitted]
plot points are as follows:
Golden Oak Golden Oak Lehman
Michigan Michigan 3-10 Year Merrill
Tax-Free Bond Tax-Free Bond Muni 1-12 Year Lipper
Portfolio, Portfolio, Blended Municipal Michigan
Synthetic I Synthetic A Index Index Municipal
Jan-90 10,000 9,550 10,000 10,000 10,000
Jan-91 10,777 10,271 10,904 10,996 10,790
Jan-92 11,840 11,246 11,994 12,071 11,928
Jan-93 12,686 12,026 13,006 13,067 13,152
Jan-94 13,899 13,121 14,272 14,306 14,790
Jan-95 13,538 12,751 13,998 14,009 14,151
Jan-96 15,033 14,115 15,796 15,844 16,104
Jan-97 15,442 14,458 16,394 16,430 16,532
Jan-98 16,579 15,502 17,717 17,785 18,089
Jan-99 17,474 16,303 18,828 19,004 19,082
Jan-00 17,161 15,972 18,629 18,677 17,977
*SYNTHETIC TOTAL RETURN INFORMATION REPRESENTS THE ACTUAL CLASS PERFORMANCE
BLENDED WITH COMMON TRUST FUND HISTORICAL DATA ADJUSTED FOR EXPENSES.
1FOR THE PERIOD ENDED JANUARY 31, 2000. PAST PERFORMANCE OF THE PORTFOLIO IS NOT
PREDICTIVE OF FUTURE PERFORMANCE. INDIVIDUAL CLASS I AND A SHARES WERE OFFERED
BEGINNING JUNE 23, 1997.
2PERFORMANCE OF THE CLASS A SHARES REFLECTS THE MAXIMUM FRONT END SALES CHARGE
OF 4.50%.
15
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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 Tax-Managed Equity, Golden Oak
Small Cap 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, 2000, the results of each of their operations, the changes in each
of their net assets and the financial highlights for the periods presented, in
conformity with accounting principles generally accepted in the United States.
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 auditing standards generally accepted in the United States, 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, 2000 by correspondence with the custodian and
brokers, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
March 15, 2000
16
<PAGE>
STATEMENT OF NET ASSETS GOLDEN OAK FAMILY OF FUNDS
January 31, 2000
GROWTH Value
PORTFOLIO Shares (000)
- ------------------------------------------------------
COMMON STOCKS -- 97.9%
AIRCRAFT -- 2.6%
General Dynamics ................ 17,600 $ 829
United Technologies ............. 21,300 1,128
- ------------------------------------------------------
Total Aircraft .......... 1,957
- ------------------------------------------------------
BANKS -- 0.3%
BB&T ............................ 9,000 253
- ------------------------------------------------------
Total Banks ............. 253
- ------------------------------------------------------
BEAUTY PRODUCTS -- 2.7%
Colgate-Palmolive ............... 15,800 936
Procter & Gamble ................ 11,200 1,130
- ------------------------------------------------------
Total Beauty Products ... 2,066
- ------------------------------------------------------
BROADCASTING, NEWSPAPERS AND ADVERTISING -- 1.4%
Comcast, Cl A ................... 22,500 1,035
- ------------------------------------------------------
Total Broadcasting, Newspapers
and Advertising ...... 1,035
- ------------------------------------------------------
CHEMICALS -- 1.9%
Avery Dennison .................. 13,000 881
Dow Chemical .................... 5,000 583
- ------------------------------------------------------
Total Chemicals ......... 1,464
- ------------------------------------------------------
COMMUNICATIONS EQUIPMENT -- 4.0%
Qualcomm* ....................... 23,700 3,010
- ------------------------------------------------------
Total Communications
Equipment ............ 3,010
- ------------------------------------------------------
COMPUTER SOFTWARE -- 7.0%
Computer Associates International. 6,200 426
Compuware* ...................... 43,200 915
Microsoft* ...................... 32,300 3,161
Veritas Software* ............... 5,350 780
- ------------------------------------------------------
Total Computer Software .. 5,282
- ------------------------------------------------------
COMPUTERS & SERVICES -- 4.0%
EMC* ............................ 24,400 2,599
Lexmark International, Cl A* .... 4,700 443
- ------------------------------------------------------
Total Computers & Services 3,042
- ------------------------------------------------------
GROWTH Value
PORTFOLIO (continued) Shares (000)
- ------------------------------------------------------
COMPUTERS/OFFICE AUTOMATION -- 7.9%
Cisco Systems* .................. 30,800 $ 3,373
Sun Microsystems* ............... 33,000 2,593
- ------------------------------------------------------
Total Computers/Office Automation 5,966
- ------------------------------------------------------
DRUGS -- 6.9%
Amgen* .......................... 11,500 732
Bristol-Myers Squibb ............ 22,000 1,452
Eli Lilly ....................... 9,400 629
Warner Lambert .................. 25,600 2,430
- ------------------------------------------------------
Total Drugs ............. 5,243
- ------------------------------------------------------
ELECTRICAL & ELECTRONIC PRODUCTS -- 5.0%
General Electric ................ 26,200 3,494
Solectron* ...................... 4,300 312
- ------------------------------------------------------
Total Electrical & Electronic
Products ............. 3,806
- ------------------------------------------------------
ENTERTAINMENT -- 1.2%
Carnival, Cl A .................. 20,400 919
- ------------------------------------------------------
Total Entertainment ..... 919
- ------------------------------------------------------
FINANCIAL SERVICES -- 1.7%
Fannie Mae ...................... 21,300 1,277
- ------------------------------------------------------
Total Financial Services. 1,277
- ------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 2.8%
General Mills ................... 12,600 393
Quaker Oats ..................... 28,500 1,692
- ------------------------------------------------------
Total Food, Beverage &
Tobacco .............. 2,085
- ------------------------------------------------------
INSURANCE -- 1.9%
Citigroup ....................... 13,550 778
Jefferson Pilot ................. 11,400 670
- ------------------------------------------------------
Total Insurance ......... 1,448
- ------------------------------------------------------
MACHINERY -- 0.9%
Applied Materials* .............. 4,800 659
- ------------------------------------------------------
Total Machinery ......... 659
- ------------------------------------------------------
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, 2000
GROWTH Value
PORTFOLIO(continued) Shares (000)
- -----------------------------------------------------
MEASURING DEVICES -- 3.3%
JDS Uniphase* ................... 12,200 $ 2,488
- -----------------------------------------------------
Total Measuring Devices . 2,488
- -----------------------------------------------------
MEDICAL PRODUCTS & SERVICES -- 5.1%
Allergan ........................ 26,800 1,528
Johnson & Johnson ............... 27,200 2,341
- -----------------------------------------------------
Total Medical Products & Services 3,869
- -----------------------------------------------------
MISCELLANEOUS BUSINESS SERVICES -- 5.3%
Electronic Data Systems ......... 12,200 825
Siebel Systems* ................. 35,000 3,209
- -----------------------------------------------------
Total Miscellaneous Business Services 4,034
- -----------------------------------------------------
ONLINE SERVICES -- 2.8%
America Online* ................. 23,800 1,355
Yahoo!* ......................... 2,400 773
- -----------------------------------------------------
Total Online Services ... 2,128
- -----------------------------------------------------
PAPER & PAPER PRODUCTS -- 1.2%
Kimberly-Clark .................. 14,400 892
- -----------------------------------------------------
Total Paper & Paper Products 892
- -----------------------------------------------------
PETROLEUM & FUEL PRODUCTS -- 1.4%
Occidental Petroleum ............ 22,400 445
Phillips Petroleum .............. 15,500 634
- -----------------------------------------------------
Total Petroleum & Fuel
Products ............. 1,079
- -----------------------------------------------------
PRINTING & PUBLISHING -- 2.2%
McGraw-Hill ..................... 17,000 953
Tribune ......................... 17,200 726
- -----------------------------------------------------
Total Printing & Publishing 1,679
- -----------------------------------------------------
RAILROADS -- 0.6%
Union Pacific ................... 10,500 420
- -----------------------------------------------------
Total Railroads ......... 420
- -----------------------------------------------------
GROWTH Value
PORTFOLIO(continued) Shares (000)
- -----------------------------------------------------
RETAIL -- 8.6%
Best Buy* ........................ 24,800 $ 1,184
Estee Lauder ..................... 14,500 741
Home Depot ....................... 26,700 1,512
Wal-Mart Stores .................. 56,500 3,093
- -----------------------------------------------------
Total Retail ............. 6,530
- -----------------------------------------------------
SEMI-CONDUCTORS/INSTRUMENTS -- 3.8%
PMC-Sierra* ...................... 3,800 686
Texas Instruments ................ 20,700 2,233
- -----------------------------------------------------
Total Semi-Conductors/
Instruments ........... 2,919
- -----------------------------------------------------
TELEPHONES & TELECOMMUNICATION -- 8.3%
Bellsouth ........................ 32,700 1,539
Exodus Communications* ........... 8,000 919
MCI WorldCom* .................... 28,950 1,330
Motorola ......................... 13,700 1,873
Nextel Communications, Cl A* ..... 5,700 606
- -----------------------------------------------------
Total Telephones &
Telecommunication ..... 6,267
- -----------------------------------------------------
TESTING LABORATORIES -- 2.3%
Medimmune* ....................... 11,700 1,708
- -----------------------------------------------------
Total Testing Laboratories 1,708
- -----------------------------------------------------
TRANSPORTATION SERVICES -- 0.3%
Galileo International ............ 9,900 238
- -----------------------------------------------------
Total Transportation Services 238
- -----------------------------------------------------
WHOLESALE -- 0.5%
Sysco ............................ 9,800 349
- -----------------------------------------------------
Total Wholesale .......... 349
- -----------------------------------------------------
Total Common Stocks
(Cost $54,152) ........ 74,112
- -----------------------------------------------------
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, 2000
Face
GROWTH Amount Value
PORTFOLIO(concluded) (000) (000)
- -----------------------------------------------------
REPURCHASE AGREEMENT -- 2.1%
Morgan Stanley (A)
5.630%, dated 01/31/00,
matures 02/01/00, repurchase
price $1,594,251 (collateralized
by U.S. Treasury Note, total
market value: $1,639,418) ..... $1,594 $ 1,594
- -----------------------------------------------------
Total Repurchase Agreement
(Cost $1,594) .......... 1,594
- -----------------------------------------------------
Total Investments -- 100.0%
(Cost $55,746) ......... 75,706
- -----------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET -- 0.0% 20
- -----------------------------------------------------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value)
based on 3,691,477 outstanding
shares of beneficial interest . 41,673
Portfolio Shares of Class A (unlimited
authorization -- no par value)
based on 564,121 outstanding
shares of beneficial interest . 8,712
Accumulated Net Realized Gain on
Investments ................... 5,381
Net Unrealized Appreciation on Investments 19,960
- -----------------------------------------------------
Total Net Assets -- 100.0% ......... $75,726
- -----------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Class I .... $17.85
Net Asset Value and Redemption
Price Per Share -- Class A .... $17.43
Maximum Offering Price per Share --
Class A ($17.43 / 94.25%) ..... $18.49
- -----------------------------------------------------
* Non-income producing security
(A) Tri-Party Repurchase Agreement
Cl -- Class
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, 2000
VALUE Value
PORTFOLIO Shares (000)
- -----------------------------------------------------
COMMON STOCKS -- 95.6%
AIRCRAFT -- 0.9%
United Technologies ............. 10,600 $ 561
- -----------------------------------------------------
Total Aircraft .......... 561
- -----------------------------------------------------
AUTOMOTIVE -- 2.2%
General Motors .................. 18,000 1,448
- -----------------------------------------------------
Total Automotive ........ 1,448
- -----------------------------------------------------
BANKS -- 4.9%
AmSouth Bancorporation .......... 24,000 418
Bank of America ................. 16,900 819
Bank of New York ................ 14,600 593
J. P. Morgan .................... 6,000 737
Mellon Financial ................ 20,640 708
- -----------------------------------------------------
Total Banks ............. 3,275
- -----------------------------------------------------
BROADCASTING, NEWSPAPERS & ADVERTISING -- 1.9%
Cablevision Systems, Cl A* ...... 7,500 573
Mediaone Group* ................. 8,500 676
- -----------------------------------------------------
Total Broadcasting, Newspapers
& Advertising ........ 1,249
- -----------------------------------------------------
CHEMICALS -- 4.3%
E.I. du Pont de Nemours ......... 30,000 1,770
Monsanto ........................ 30,300 1,070
- -----------------------------------------------------
Total Chemicals ......... 2,840
- -----------------------------------------------------
COMPUTER SOFTWARE -- 1.0%
Microsoft* ...................... 7,000 685
- -----------------------------------------------------
Total Computer Software . 685
- -----------------------------------------------------
COMPUTERS & SERVICES -- 4.0%
Electronic Data Systems ......... 9,400 636
Minnesota Mining & Manufacturing. 9,000 843
Unisys* ......................... 36,800 1,173
- -----------------------------------------------------
Total Computers & Services 2,652
- -----------------------------------------------------
DRUGS -- 2.4%
Pfizer .......................... 28,700 1,044
Pharmacia & Upjohn .............. 12,000 564
- -----------------------------------------------------
Total Drugs ............. 1,608
- -----------------------------------------------------
VALUE Value
PORTFOLIO (continued) Shares (000)
- -----------------------------------------------------
ELECTRICAL UTILITIES -- 6.4%
AES* ............................ 18,700 $ 1,498
General Electric ................ 5,300 707
PG&E ............................ 43,000 943
Southern ........................ 41,900 1,074
- -----------------------------------------------------
Total Electrical Utilities 4,222
- -----------------------------------------------------
ENTERTAINMENT -- 0.9%
Carnival, Cl A .................. 13,500 608
- -----------------------------------------------------
Total Entertainment ..... 608
- -----------------------------------------------------
FINANCIAL SERVICES -- 11.0%
American Express ................ 8,000 1,318
Citigroup ....................... 27,000 1,551
Fannie Mae ...................... 20,230 1,213
Freddie Mac ..................... 25,000 1,255
MBNA ............................ 27,500 694
Morgan Stanley, Dean Witter,
Discover & Company .......... 19,000 1,259
- -----------------------------------------------------
Total Financial Services. 7,290
- -----------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.8%
Anheuser Busch .................. 8,000 540
- -----------------------------------------------------
Total Food, Beverage
& Tobacco ............ 540
- -----------------------------------------------------
GAS/NATURAL GAS -- 1.5%
Columbia Gas Systems ............ 15,500 1,007
- -----------------------------------------------------
Total Gas/Natural Gas ... 1,007
- -----------------------------------------------------
INSURANCE -- 5.3%
AIG ............................. 10,000 1,041
Allstate ........................ 23,000 533
AXA Financial ................... 30,000 977
Marsh & McLennan ................ 10,500 987
- -----------------------------------------------------
Total Insurance ......... 3,538
- -----------------------------------------------------
MACHINERY -- 2.5%
Dover ........................... 22,100 891
Ingersoll-Rand .................. 16,000 753
- -----------------------------------------------------
Total Machinery ......... 1,644
- -----------------------------------------------------
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, 2000
VALUE Value
PORTFOLIO (continued) Shares (000)
- -----------------------------------------------------
MEDICAL PRODUCTS & SERVICES -- 2.2%
Bausch & Lomb ................... 22,900 $ 1,420
- -----------------------------------------------------
Total Medical Products &
Services ............. 1,420
- -----------------------------------------------------
MISCELLANEOUS BUSINESS SERVICES -- 2.8%
Parametric Technology* .......... 25,000 536
Teradyne* ....................... 20,000 1,295
- -----------------------------------------------------
Total Miscellaneous Business Services 1,831
- -----------------------------------------------------
PAPER & PAPER PRODUCTS -- 5.5%
Champion International .......... 11,000 643
International Paper ............. 27,500 1,310
Kimberly-Clark .................. 19,000 1,177
Smurfit-Stone Container* ........ 26,600 527
- -----------------------------------------------------
Total Paper & Paper Products 3,657
- -----------------------------------------------------
PETROLEUM & FUEL PRODUCTS -- 3.7%
Anadarko Petroleum .............. 45,000 1,477
Schlumberger .................... 14,000 855
Transocean Sedco Forex .......... 2,710 86
- -----------------------------------------------------
Total Petroleum & Fuel Products 2,418
- -----------------------------------------------------
PETROLEUM REFINING -- 7.6%
Atlantic Richfield .............. 13,000 1,001
Exxon Mobil ..................... 28,482 2,378
Texaco .......................... 9,000 476
Unocal .......................... 40,000 1,145
- -----------------------------------------------------
Total Petroleum Refining 5,000
- -----------------------------------------------------
PRINTING & PUBLISHING -- 1.7%
Knight-Ridder ................... 21,500 1,146
- -----------------------------------------------------
Total Printing & Publishing 1,146
- -----------------------------------------------------
RAILROADS -- 1.1%
Union Pacific ................... 19,000 760
- -----------------------------------------------------
Total Railroads ......... 760
- -----------------------------------------------------
RETAIL -- 1.1%
Safeway* ........................ 18,500 706
- -----------------------------------------------------
Total Retail ............ 706
- -----------------------------------------------------
Shares/
VALUE Face Amount Value
PORTFOLIO (continued) (000) (000)
- -----------------------------------------------------
SEMI-CONDUCTORS/INSTRUMENTS -- 8.1%
Intel ........................... 15,000 $ 1,484
LSI Logic* ...................... 20,000 1,635
Motorola ........................ 7,000 957
Texas Instruments ............... 12,000 1,294
- -----------------------------------------------------
Total Semi-Conductors/Instruments 5,370
- -----------------------------------------------------
STEEL & STEEL WORKS -- 3.1%
Alcan Aluminum .................. 17,500 684
Alcoa ........................... 20,000 1,394
- -----------------------------------------------------
Total Steel & Steel Works 2,078
- -----------------------------------------------------
TELEPHONES & TELECOMMUNICATION -- 8.7%
Alltel .......................... 19,500 1,302
MCI WorldCom* ................... 17,100 785
SBC ............................. 25,530 1,101
Telefonos De Mexico SA, ADR ..... 7,500 799
Telephone & Data Systems ........ 7,000 728
US West ......................... 16,060 1,068
- -----------------------------------------------------
Total Telephones & Telecommunication 5,783
- -----------------------------------------------------
Total Common Stocks
(Cost $52,652) ....... 63,336
- -----------------------------------------------------
REPURCHASE AGREEMENT -- 4.3%
Morgan Stanley (A)
5.250%, dated 01/31/00,
matures 02/01/00, repurchase
price $2,830,201
(collateralized by U.S.
Treasury Bond, total market
value: $2,903,459) .......... $2,830 2,830
- -----------------------------------------------------
Total Repurchase Agreement
(Cost $2,830) ........ 2,830
- -----------------------------------------------------
Total Investments -- 99.9%
(Cost $55,482) ....... 66,166
- -----------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET -- 0.1% 63
- -----------------------------------------------------
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, 2000
- -----------------------------------------------------
VALUE Value
PORTFOLIO (concluded) (000)
- -----------------------------------------------------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value)
based on 6,252,619 outstanding
shares of beneficial interest .......... $46,774
Portfolio Shares of Class A (unlimited
authorization -- no par value)
based on 758,498 outstanding
shares of beneficial interest .......... 7,354
Undistributed Net Investment Income ........ 1
Accumulated Net Realized Gain on Investments 1,416
Net Unrealized Appreciation on Investments . 10,684
- -----------------------------------------------------
Total Net Assets -- 100.0% .................. $66,229
- -----------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Class I ............. $9.45
Net Asset Value and Redemption
Price Per Share -- Class A ............. $9.41
Maximum Offering Price per Share --
Class A ($9.41 / 94.25%) ............... $9.98
- -----------------------------------------------------
* Non-income producing security
(A) Tri-Party Repurchase Agreement
ADR -- American Depository Receipt
Cl -- Class
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, 2000
TAX-MANAGED EQUITY Value
PORTFOLIO Shares (000)
- -----------------------------------------------------
COMMON STOCKS -- 99.3%
AEROSPACE & DEFENSE -- 3.7%
United Technologies ............. 28,000 $ 1,482
- -----------------------------------------------------
Total Aerospace & Defense 1,482
- -----------------------------------------------------
BANKS -- 2.4%
First Union ..................... 29,400 987
- -----------------------------------------------------
Total Banks ............. 987
- -----------------------------------------------------
BEAUTY PRODUCTS -- 0.5%
Procter & Gamble ................ 2,100 212
- -----------------------------------------------------
Total Beauty Products ... 212
- -----------------------------------------------------
CHEMICALS -- 0.5%
Air Products & Chemicals ........ 6,688 198
- -----------------------------------------------------
Total Chemicals ......... 198
- -----------------------------------------------------
COMMUNICATIONS EQUIPMENT -- 4.6%
Qualcomm* ....................... 14,800 1,880
- -----------------------------------------------------
Total Communications
Equipment ............ 1,880
- -----------------------------------------------------
COMPUTER SOFTWARE -- 6.9%
Microsoft* ...................... 28,688 2,808
- -----------------------------------------------------
Total Computer Software . 2,808
- -----------------------------------------------------
COMPUTERS & SERVICES -- 4.2%
Apple Computers* ................ 7,800 809
Comverse Technology* ............ 2,600 373
Lexmark International, Cl A* .... 5,500 518
- -----------------------------------------------------
Total Computers & Services 1,700
- -----------------------------------------------------
COMPUTERS/OFFICE AUTOMATION -- 2.2%
Cisco Systems* .................. 8,300 909
- -----------------------------------------------------
Total Computers/Office Automation 909
- -----------------------------------------------------
DRUGS -- 5.8%
Abbott Laboratories ............. 26,400 861
Biogen* ......................... 17,500 1,509
- -----------------------------------------------------
Total Drugs ............. 2,370
- -----------------------------------------------------
TAX-MANAGED EQUITY Value
PORTFOLIO(continued) Shares (000)
- -----------------------------------------------------
ELECTRICAL & ELECTRONIC PRODUCTS -- 7.1%
General Electric ................ 21,600 $ 2,881
- -----------------------------------------------------
Total Electrical & Electronic Products 2,881
- -----------------------------------------------------
ENTERTAINMENT -- 4.0%
Walt Disney ..................... 45,000 1,634
- -----------------------------------------------------
Total Entertainment ..... 1,634
- -----------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 2.1%
McDonald's ...................... 23,200 863
- -----------------------------------------------------
Total Food, Beverage & Tobacco 863
- -----------------------------------------------------
INSURANCE -- 8.2%
AFLAC ........................... 29,200 1,268
Cincinnati Financial ............ 19,097 549
Citigroup ....................... 26,100 1,499
- -----------------------------------------------------
Total Insurance ......... 3,316
- -----------------------------------------------------
MACHINERY -- 1.1%
Caterpillar ..................... 10,800 458
- -----------------------------------------------------
Total Machinery ......... 458
- -----------------------------------------------------
MEASURING DEVICES -- 5.5%
JDS Uniphase* ................... 11,000 2,243
- -----------------------------------------------------
Total Measuring Devices . 2,243
- -----------------------------------------------------
MEDICAL PRODUCTS & SERVICES -- 5.5%
Medtronic ....................... 48,750 2,230
- -----------------------------------------------------
Total Medical Products & Services 2,230
- -----------------------------------------------------
MISCELLANEOUS BUSINESS SERVICES -- 5.9%
eBay* ........................... 2,100 315
Siebel Systems* ................. 16,900 1,550
Verisign* ....................... 3,200 517
- -----------------------------------------------------
Total Miscellaneous Business Services 2,382
- -----------------------------------------------------
ONLINE SERVICES -- 0.7%
America Online* ................. 5,200 296
- -----------------------------------------------------
Total Online Services ... 296
- -----------------------------------------------------
PAPER & PAPER PRODUCTS -- 4.4%
Kimberly-Clark .................. 28,600 1,772
- -----------------------------------------------------
Total Paper & Paper Products 1,772
- -----------------------------------------------------
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, 2000
TAX-MANAGED EQUITY Value
PORTFOLIO(continued) Shares (000)
- -----------------------------------------------------
PETROLEUM REFINING -- 3.3%
BP Amoco PLC, ADR ............... 25,252 $ 1,357
- -----------------------------------------------------
Total Petroleum Refining. 1,357
- -----------------------------------------------------
PRINTING & PUBLISHING -- 4.9%
Gannett ......................... 28,400 1,974
- -----------------------------------------------------
Total Printing & Publishing 1,974
- -----------------------------------------------------
RETAIL -- 1.8%
Home Depot ...................... 3,600 204
Wal-Mart Stores ................. 9,400 515
- -----------------------------------------------------
Total Retail ............ 719
- -----------------------------------------------------
SEMI-CONDUCTORS/INSTRUMENTS -- 4.1%
Intel ........................... 16,600 1,642
- -----------------------------------------------------
Total Semi-Conductors/Instruments 1,642
- -----------------------------------------------------
TELEPHONES & TELECOMMUNICATION -- 9.9%
Exodus Communications* .......... 5,000 574
GTE ............................. 18,100 1,327
MCI WorldCom* ................... 46,273 2,126
- -----------------------------------------------------
Total Telephones & Telecommunication 4,027
- -----------------------------------------------------
Total Common Stocks
(Cost $17,945) ....... 40,340
- -----------------------------------------------------
CASH EQUIVALENT -- 0.7%
SEI Daily Income Trust Money
Market Portfolio .............. 296,674 297
- -----------------------------------------------------
Total Cash Equivalent
(Cost $297) .......... 297
- -----------------------------------------------------
Total Investments -- 100.0%
(Cost $18,242) ....... 40,637
- -----------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET -- 0.0% 7
- -----------------------------------------------------
TAX-MANAGED EQUITY Value
PORTFOLIO(concluded) (000)
- -----------------------------------------------------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value)
based on 3,930,179 outstanding
shares of beneficial interest $ 7,535
Portfolio Shares of Class A (unlimited
authorization -- no par value)
based on 33,130 outstanding
shares of beneficial interest 334
Accumulated Net Realized Gain on Investments 10,380
Net Unrealized Appreciation on Investments 22,395
- -----------------------------------------------------
Total Net Assets -- 100.0% ....... $40,644
- -----------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Class I .. $10.26
Net Asset Value and Redemption
Price Per Share -- Class A .. $10.24
Maximum Offering Price per Share --
Class A ($10.24 / 94.25%) ... $10.86
- -----------------------------------------------------
* Non-income producing security
ADR -- American Depository Receipt
Cl -- Class
PLC -- Public Limited Company
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, 2000
SMALL CAP VALUE Value
PORTFOLIO Shares (000)
- -----------------------------------------------------
COMMON STOCKS -- 89.5%
AEROSPACE & DEFENSE -- 1.9%
Cordant Technologies ............ 25,000 $ 827
- -----------------------------------------------------
Total Aerospace & Defense 827
- -----------------------------------------------------
AIR TRANSPORTATION -- 1.4%
Offshore Logistics* ............. 65,000 601
- -----------------------------------------------------
Total Air Transportation. 601
- -----------------------------------------------------
APPAREL/TEXTILES -- 2.9%
Columbia Sportswear* ............ 40,000 720
First Years ..................... 65,000 552
- -----------------------------------------------------
Total Apparel/Textiles .. 1,272
- -----------------------------------------------------
AUTOMOTIVE -- 3.5%
Arvin Industries ................ 33,000 765
Polaris Industries .............. 24,000 777
- -----------------------------------------------------
Total Automotive ........ 1,542
- -----------------------------------------------------
BANKS -- 9.3%
Astoria Financial ............... 27,000 786
Bank United, Cl A ............... 31,000 804
City National ................... 8,500 296
Peoples Heritage Financial Group. 55,000 808
Sovereign Bancorp 90,000 616
Webster Financial ............... 34,000 790
- -----------------------------------------------------
Total Banks ............. 4,100
- -----------------------------------------------------
COMMUNICATIONS EQUIPMENT -- 0.3%
Boston Acoustics ................ 11,000 151
- -----------------------------------------------------
Total Communications Equipment 151
- -----------------------------------------------------
COMPUTERS & SERVICES -- 2.1%
Rainbow Technology* ............. 42,000 942
- -----------------------------------------------------
Total Computers & Services 942
- -----------------------------------------------------
CONCRETE & MINERAL PRODUCTS -- 1.7%
Ferro ........................... 38,000 741
- -----------------------------------------------------
Total Concrete & Mineral Products 741
- -----------------------------------------------------
SMALL CAP VALUE Value
PORTFOLIO (continued) Shares (000)
- -----------------------------------------------------
CONSUMER PRODUCTS -- 4.6%
K-Swiss, Cl A ................... 50,000 $ 619
Stride Rite ..................... 120,000 727
Timberland, Cl A* ............... 18,000 666
- -----------------------------------------------------
Total Consumer Products . 2,012
- -----------------------------------------------------
ELECTRICAL UTILITIES -- 1.7%
Madison Gas & Electric .......... 40,000 725
- -----------------------------------------------------
Total Electrical Utilities 725
- -----------------------------------------------------
FINANCIAL SERVICES -- 5.2%
Legg Mason ...................... 24,000 885
Mony Group ...................... 23,000 621
Washington Federal .............. 45,000 754
- -----------------------------------------------------
Total Financial Services 2,260
- -----------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 6.6%
Bob Evans Farms ................. 10,000 159
Canandaigua Wine, Cl A* ......... 18,000 934
Jack in the Box* ................ 45,000 925
J & J Snack Foods* .............. 45,000 861
- -----------------------------------------------------
Total Food, Beverage & Tobacco 2,879
- -----------------------------------------------------
GAS/NATURAL GAS -- 1.9%
Utilicorp United ................ 42,000 822
- -----------------------------------------------------
Total Gas/Natural Gas ... 822
- -----------------------------------------------------
HOUSEHOLD FURNITURE & FIXTURES -- 1.7%
Ethan Allen Interiors ........... 30,000 750
- -----------------------------------------------------
Total Household Furniture & Fixtures 750
- -----------------------------------------------------
INSURANCE -- 4.2%
Arthur J. Gallegher & Company ... 16,000 860
Oxford Health Plan* ............. 22,000 312
Selective Insurance Group ....... 45,000 678
- -----------------------------------------------------
Total Insurance ......... 1,850
- -----------------------------------------------------
LUMBER & WOOD PRODUCTS -- 1.5%
American Woodmark ............... 38,000 677
- -----------------------------------------------------
Total Lumber & Wood Products 677
- -----------------------------------------------------
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
January 31, 2000
SMALL CAP VALUE Value
PORTFOLIO(continued) Shares (000)
- -----------------------------------------------------
MACHINERY -- 2.1%
Alliant Techsystems* ............ 14,000 $ 908
- -----------------------------------------------------
Total Machinery ......... 908
- -----------------------------------------------------
MEASURING DEVICES -- 3.4%
Cohu ............................ 36,000 1,485
- -----------------------------------------------------
Total Measuring Devices . 1,485
- -----------------------------------------------------
MEDICAL PRODUCTS & SERVICES -- 3.3%
Datascope* 18,000 650
Dentsply International .......... 33,000 817
- -----------------------------------------------------
Total Medical Products & Services 1,467
- -----------------------------------------------------
OFFICE FURNITURE & FIXTURES -- 1.8%
Hon Industries .................. 40,000 770
- -----------------------------------------------------
Total Office Furniture & Fixtures 770
- -----------------------------------------------------
PAPER & PAPER PRODUCTS -- 1.5%
PH Glatfelter ................... 55,000 677
- -----------------------------------------------------
Total Paper & Paper Products 677
- -----------------------------------------------------
PETROLEUM & OIL PRODUCTS -- 1.6%
Tidewater ....................... 25,000 711
- -----------------------------------------------------
Total Petroleum & Oil Products 711
- -----------------------------------------------------
PRINTING & PUBLISHING -- 5.7%
American Greetings, Cl A ........ 36,000 797
McClatchy Newspapers, Cl A ...... 20,000 843
Southdown ....................... 17,000 851
- -----------------------------------------------------
Total Printing & Publishing 2,491
- -----------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS -- 3.8%
CBL & Associates Properties ..... 40,000 843
Franchise Finance Corporation
of America .................. 35,000 840
- -----------------------------------------------------
Total Real Estate Investment Trusts 1,683
- -----------------------------------------------------
RETAIL -- 2.9%
Ann Taylor Stores* .............. 30,000 660
Brookstone* ..................... 16,700 284
Lands' End* ..................... 10,000 344
- -----------------------------------------------------
Total Retail ............ 1,288
- -----------------------------------------------------
SMALL CAP VALUE Shares/Face Value
PORTFOLIO(continued) Amount (000) (000)
- -----------------------------------------------------
SEMI-CONDUCTORS/INSTRUMENTS -- 3.8%
Innovex ......................... 65,000 $ 548
Integrated Device Technology* ... 10,000 285
Three-Five Systems* ............. 21,366 821
- -----------------------------------------------------
Total Semi-Conductors/Instruments 1,654
- -----------------------------------------------------
SPECIALTY MACHINERY -- 1.9%
Tecumseh Products, Cl A ......... 18,000 821
- -----------------------------------------------------
Total Specialty Machinery 821
- -----------------------------------------------------
STEEL & STEEL WORKS -- 1.1%
Commonwealth Industries ......... 47,000 488
- -----------------------------------------------------
Total Steel & Steel Works 488
- -----------------------------------------------------
TRUCKING -- 1.8%
Arnold Industries ............... 60,000 810
- -----------------------------------------------------
Total Trucking .......... 810
- -----------------------------------------------------
WHOLESALE -- 4.3%
Orbotech Limited* ............... 15,000 1,140
Syncor International* ........... 30,000 728
- -----------------------------------------------------
Total Wholesale ......... 1,868
- -----------------------------------------------------
Total Common Stocks
(Cost $41,309) ....... 39,272
- -----------------------------------------------------
REPURCHASE AGREEMENT -- 10.7%
Morgan Stanley (A)
5.250%, dated 01/31/00,
matures 02/01/00,
repurchase price $4,687,115
(collateralized by U.S.
Treasury Bond, total market
value $4,808,438) ........... $ 4,686 4,686
- -----------------------------------------------------
Total Repurchase Agreement
(Cost $4,686) ........ 4,686
- -----------------------------------------------------
Total Investments -- 100.2%
(Cost $45,995) 43,958
- -----------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET -- (0.2%) (99)
- -----------------------------------------------------
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
January 31, 2000
SMALL CAP VALUE Value
PORTFOLIO (concluded) (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value)
based on 4,250,704 outstanding
shares of beneficial interest $41,630
Portfolio Shares of Class A (unlimited
authorization -- no par value)
based on 346,462 outstanding
shares of beneficial interest 3,468
Undistributed Net Investment Income 4
Accumulated Net Realized Gain on Investments 794
Net Unrealized Depreciation on Investments (2,037)
- --------------------------------------------------------------------------------
Total Net Assets -- 100.0% $43,859
- --------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Class I $9.54
Net Asset Value and Redemption
Price Per Share -- Class A $9.54
Maximum Offering Price per Share --
Class A ($9.54 / 94.25%) $10.12
- --------------------------------------------------------------------------------
* Non-income producing security
(A) Tri-Party Repurchase Agreement
Cl -- Class
The accompanying notes are an integral part of the financial statements.
27
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
January 31, 2000
Face
INTERMEDIATE-TERM INCOME Amount Value
PORTFOLIO (000) (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 31.7%
U.S. Treasury Bonds
7.500%, 11/15/16 $14,500 $15,601
6.250%, 08/15/23 2,000 1,906
U.S. Treasury Notes
7.750%, 02/15/01 3,375 3,421
6.250%, 04/30/01 1,000 997
7.500%, 05/15/02 2,700 2,746
6.375%, 08/15/02 10,000 9,929
7.875%, 11/15/04 3,600 3,759
6.625%, 05/15/07 1,000 992
6.125%, 08/15/07 2,500 2,407
4.750%, 11/15/08 8,000 6,956
- --------------------------------------------------------------------------------
Total U.S. Treasury Obligations
(Cost $51,240) 48,714
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 7.1%
Federal Home Loan Bank
5.740%, 02/25/05 3,500 3,295
Federal National Mortgage
Association
6.500%, 08/15/04 5,000 4,868
Federal National Mortgage
Association, MTN
6.580%, 05/14/08 3,000 2,807
- --------------------------------------------------------------------------------
Total U.S. Government Agency Obligations
(Cost $11,432) 10,970
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS -- 15.7%
Federal Home Loan Mortgage
Corporation, REMIC
6.250%, 10/15/22 4,000 3,763
6.250%, 10/15/23 5,000 4,682
9.000%, 01/15/25 2,564 2,655
6.900%, 04/15/26 3,732 3,611
5.500%, 03/15/29 156 137
Federal National Mortgage
Association
6.390%, 08/01/13 5,361 4,996
7.040%, 08/01/15 1,390 1,336
6.460%, 12/01/28 3,094 2,864
Federal National Mortgage
Association,
REMIC
7.410%, 04/25/20 49 49
- --------------------------------------------------------------------------------
Total U.S. Government Mortgage-
Backed Obligations
(Cost $25,581) 24,093
- --------------------------------------------------------------------------------
Face
INTERMEDIATE-TERM INCOME Amount Value
PORTFOLIO(continued) (000) (000)
- --------------------------------------------------------------------------------
CORPORATE OBLIGATIONS -- 40.2%
AIRLINES -- 0.5%
US Airways
6.760%, 04/15/08 $ 910 $ 814
- --------------------------------------------------------------------------------
Total Airlines 814
- --------------------------------------------------------------------------------
AUTOMOTIVE -- 1.8%
Delphi Auto Systems
6.500%, 05/01/09 3,000 2,692
- --------------------------------------------------------------------------------
Total Automotive 2,692
- --------------------------------------------------------------------------------
BANKS -- 3.4%
Inter-American Development Bank
6.000%, 05/13/09 3,000 2,689
National City Bank
5.750%, 02/01/09 3,000 2,585
- --------------------------------------------------------------------------------
Total Banks 5,274
- --------------------------------------------------------------------------------
FINANCIAL SERVICES -- 14.3%
Associates Corporation of North
America
8.550%, 07/15/09 2,000 2,082
BHP Finance
8.500%, 12/01/12 3,917 4,020
Boeing Capital, MTN
7.250%, 02/01/11 1,000 955
Comdisco, MTN, Series G
6.340%, 01/11/02 1,500 1,451
General Motors Acceptance
7.750%, 01/19/10 4,000 3,995
Merrill Lynch
6.000%, 02/17/09 4,000 3,545
Morgan Stanley, Dean Witter,
Discover (A)
6.355%, 12/17/01 3,000 3,000
Textron Financial (A)
6.470%, 12/09/02 3,000 3,000
- --------------------------------------------------------------------------------
Total Financial Services 22,048
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
28
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
January 31, 2000
Face
INTERMEDIATE-TERM INCOME Amount Value
PORTFOLIO(continued) (000) (000)
- --------------------------------------------------------------------------------
INDUSTRIAL -- 12.2%
Case
7.250%, 08/01/05 $ 2,000 $ 1,880
Cooper Industries, MTN
6.375%, 05/08/08 2,000 1,825
Hertz
7.000%, 05/01/02 2,800 2,772
Hubbell
6.625%, 10/01/05 1,000 964
Philip Morris, Global Bond
7.000%, 07/15/05 1,500 1,391
RR Donnelley & Sons
6.700%, 07/05/05 1,000 967
Supervalu, MTN
6.640%, 06/09/06 3,000 2,753
TRW
7.370%, 04/18/07 4,500 4,348
Unocal
6.500%, 05/01/08 2,000 1,820
- --------------------------------------------------------------------------------
Total Industrial 18,720
- --------------------------------------------------------------------------------
INSURANCE -- 1.3%
Conseco
8.500%, 10/15/02 2,000 2,005
- --------------------------------------------------------------------------------
Total Insurance 2,005
- --------------------------------------------------------------------------------
RAILROADS -- 1.8%
CSX
6.400%, 06/15/09 2,000 1,809
Union Pacific
6.125%, 01/15/04 1,000 938
- --------------------------------------------------------------------------------
Total Railroads 2,747
- --------------------------------------------------------------------------------
RETAIL -- 2.5%
Albertson's
6.950%, 08/01/09 4,000 3,785
- --------------------------------------------------------------------------------
Total Retail 3,785
- --------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATION -- 2.4%
Cable & Wireless Communications
6.750%, 03/06/08 1,000 978
US West Capital Funding
6.375%, 07/15/08 3,000 2,704
- --------------------------------------------------------------------------------
Total Telephones &
Telecommunication 3,682
- --------------------------------------------------------------------------------
Total Corporate Obligations
(Cost $65,936) 61,767
- --------------------------------------------------------------------------------
Face
INTERMEDIATE-TERM INCOME Amount Value
PORTFOLIO(concluded) (000) (000)
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES -- 0.3%
Countrywide Home Loan Trust,
Series 1999-3, Class A5
6.500%, 04/25/29 $ 588 $ 540
- --------------------------------------------------------------------------------
Total Asset-Backed Securities
(Cost $582) 540
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 3.8%
Morgan Stanley (B)
5.630%, dated 01/31/00, matures
02/01/00, repurchase price
$5,850,298 (collateralized by
U.S. Treasury Note, total market
value: $6,005,493) 5,8495,849
- ------------------------------------------------------------------------------
Total Repurchase Agreement
(Cost $5,849) 5,849
- ------------------------------------------------------------------------------
Total Investments -- 98.8%
(Cost $160,620) 151,933
- ------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET -- 1.2% 1,840
- ------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value)
based on 15,773,185 outstanding
shares of beneficial interest 157,291
Portfolio Shares of Class A (unlimited
authorization -- no par value)
based on 665,581 outstanding
shares of beneficial interest 6,645
Accumulated Net Realized Loss on Investments (1,476)
Net Unrealized Depreciation on Investments (8,687)
- -------------------------------------------------------------------------------
Total Net Assets -- 100.0% $153,773
- -------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Class I $9.35
Net Asset Value and Redemption
Price Per Share -- Class A $9.35
Maximum Offering Price per Share --
Class A ($9.35 / 95.5%) $9.79
- -------------------------------------------------------------------------------
(A) Variable rate security. The rate shown on the statement of Net Assets is the
rate as of January 31, 2000.
(B) Tri-Party Repurchase Agreement
MTN -- Medium Term Note
REMIC -- Real Estate Mortgage Investment Conduit
The accompanying notes are an integral part of the financial statements.
29
<PAGE>
STATEMENT OF NET ASSETS(continued) GOLDEN OAK FAMILY OF FUNDS
January 31, 2000
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO (000) (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 98.3%
MICHIGAN -- 98.3%
Alpena County GO, AMBAC
5.450%, 06/01/01 $ 250 $ 253
Anchor Bay, School District
GO, MBIA
6.000%, 05/01/03 870 902
Ann Arbor, Water Supply System
RB, MBIA
7.375%, 02/01/02 1,000 1,050
Avondale, School District GO
6.600%, 05/01/05 200 206
6.700%, 05/01/06 200 206
Big Rapids, Public School District
GO, FGIC
7.300%, 05/01/05 250 276
Bishop International Airport
Authority RB
5.125%, 12/01/17 1,500 1,309
Calhoun County GO, AMBAC
4.950%, 07/01/03 1,000 1,006
Central Michigan State University
RB, FGIC
5.200%, 10/01/09 860 864
Cheboygan, School District GO, MBIA
6.000%, 05/01/02 260 267
Chippewa Valley, School District GO,
Pre-refunded @ 101.50, FGIC (A)
6.200%, 05/01/01 250 259
Clarkston, Community Schools GO,
Pre-refunded @ 101, FGIC (A)
5.800%, 05/01/05 1,000 1,044
Clinton County, Building Authority
GO, Series A, Pre-refunded
@ 102, AMBAC (A)
6.400%, 11/01/01 250 262
De Witt, Public Schools GO, AMBAC
6.000%, 05/01/03 935 969
De Witt, Public Schools GO,
Pre-refunded @ 101.50 (A)
6.600%, 05/01/01 300 312
Dearborn, Municipal Building Authority
GO, AMBAC
7.000%, 06/01/01 300 309
7.000%, 06/01/02 475 498
7.000%, 06/01/03 505 538
Detroit GO, AMBAC
5.250%, 05/01/08 1,000 995
Detroit GO, Pre-refunded @ 102 (A)
8.000%, 04/01/01 1,000 1,060
Detroit, Distributable State Aid
GO, AMBAC
5.000%, 05/01/05 200 200
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO(continued) (000) (000)
- -------------------------------------------------------------------------------
Detroit, School District GO,
Pre-refunded @ 102 (A)
6.250%, 05/01/01 $ 850 $ 885
Detroit, Water Supply System RB,
FGIC
6.250%, 07/01/07 500 523
Detroit, Water Supply System RB,
Second Lien, Series A, MBIA
5.100%, 07/01/07 500 496
Detroit, Water Supply System RB,
Series A, FGIC
5.750%, 07/01/19 1,000 957
East Lansing GO, Series B
4.850%, 10/01/07 315 306
Farmington, Public School District GO
4.000%, 05/01/09 1,100 962
Ferris State University RB,
Pre-refunded @ 101, AMBAC (A)
5.400%, 04/01/07 675 688
Flat Rock, Community School District
GO, MBIA
7.750%, 05/01/04 675 748
Flint GO, MBIA
6.000%, 11/01/03 1,040 1,084
Grand Rapids, Building Authority RB
5.375%, 04/01/07 200 201
Grand Rapids, Downtown Development
Authority RB, MBIA
6.600%, 06/01/08 200 213
Grand Rapids, Water Supply
RB, ETM, FGIC
6.400%, 01/01/05 1,000 1,032
Grand Valley, Michigan State
University RB, MBIA
4.300%, 10/01/01 200 199
Haslett, Public School District
GO, MBIA
6.000%, 05/01/02 310 319
6.000%, 05/01/03 310 321
Howell, Public Schools GO, FGIC
5.000%, 05/01/08 1,000 981
Ingham County GO, Proctor Drain
System Project
7.100%, 02/01/01 180 185
Iron Mountain, Finance Authority
GO, AMBAC
5.000%, 05/01/05 250 250
Jenison, Public Schools GO, FGIC
5.250%, 05/01/11 1,575 1,543
The accompanying notes are an integral part of the financial statements.
30
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
January 31, 2000
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO(continued) (000) (000)
- --------------------------------------------------------------------------------
Johannesburg-Lewiston, Area
Schools GO, AMBAC
6.750%, 05/01/02 $ 280 $ 292
6.750%, 05/01/03 320 339
6.000%, 05/01/04 365 381
Kalamazoo, City School District
GO, FGIC
4.550%, 05/01/01 1,000 1,000
Kalamazoo, Hospital Finance Authority
RB, Borgess Medical Center,
Series A, AMBAC
5.000%, 06/01/04 1,000 1,004
Kalamazoo, Water Supply System
Project RB
6.000%, 09/01/07 425 439
Kent County, Building Authority GO
5.000%, 12/01/06 500 498
5.100%, 12/01/07 500 499
Kent, Hospital Authority RB, Mary Free
Bed Project, Series A
6.250%, 04/01/03 250 253
Kentwood, Public School System GO
5.900%, 05/01/04 380 394
Kentwood, Public School System GO,
Pre-refunded @ 102 (A)
5.900%, 05/01/02 370 386
Lansing, Building Authority GO, ETM
7.100%, 06/01/02 100 103
Lansing, Finance Authority GO
6.100%, 10/01/03 250 260
Lincoln, School District GO, ETM,
Pre-refunded @ 102, FGIC (A)
5.750%, 05/01/04 115 117
5.750%, 05/01/04 785 822
Livonia, Municipal Building
Authority RB
5.750%, 06/01/04 250 257
Livonia, Public School District GO
5.450%, 05/01/01 200 202
Livonia, Water Supply & Wastewater
Systems RB, AMBAC
5.200%, 11/01/09 1,000 990
Montague, Public School District
GO, FSA
5.125%, 05/01/06 300 301
5.125%, 05/01/08 300 297
Northville, Public Schools GO, FGIC
5.000%, 05/01/10 500 481
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO(continued) (000) (000)
- --------------------------------------------------------------------------------
Oak Park GO, ABMAC
5.200%, 05/01/06 $ 250 $ 251
Oakland County, Birmingham Drain
District GO, Series C
7.500%, 10/01/01 325 340
Oakland County, Bloomfield Drain
District GO, Series C
7.500%, 10/01/01 275 288
Oakland County, Economic Development
Authority RB, Cranbrook Elderly
Community Project
6.375%, 11/01/14 1,000 1,059
Pewamo, Westphalia School District
GO, FGIC
5.000%, 05/01/06 275 274
Plymouth-Canton County GO, FGIC
4.500%, 05/01/12 1,100 979
Plymouth-Canton County, Community
School District GO, Series B
6.250%, 05/01/02 1,400 1,444
Plymouth-Canton County, Community
School District GO, Series B,
Pre-refunded @ 101 (A)
6.350%, 05/01/01 300 310
Plymouth-Canton County, Community
School District GO, Series C
5.900%, 05/01/02 250 257
6.200%, 05/01/05 250 262
Pontiac, Building Authority GO,
Pre-refunded @ 101, AMBAC (A)
6.875%, 04/01/01 200 207
Portage, Public Schools GO, FSA
4.350%, 05/01/11 500 445
4.450%, 05/01/12 500 442
Redford Township GO, AMBAC
6.750%, 04/01/06 200 210
Riverview, Community School District
GO, Pre-refunded @ 101.50,
FGIC (A)
6.400%, 05/01/02 250 262
Rochester Hills GO
5.500%, 11/01/06 250 254
5.500%, 11/01/07 250 253
Rochester, Community School District
GO, MBIA
5.500%, 05/01/06 1,000 1,022
The accompanying notes are an integral part of the financial statements.
31
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
January 31, 2000
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO(continued) (000) (000)
- --------------------------------------------------------------------------------
Roseville, School District GO, FSA
4.450%, 05/01/06 $1,500 $ 1,434
Royal Oak, City School District GO,
Pre-refunded @ 101.50 (A)
6.500%, 05/01/01 230 239
Saline, Building Authority GO, AMBAC
7.000%, 07/01/05 100 104
South Lyon, School District GO
6.500%, 05/01/05 350 363
State Building Authority RB,
Pre-refunded
@ 102, AMBAC (A)
6.750%, 10/01/01 245 258
State Building Authority RB, Series B
5.000%, 04/01/01 500 503
State Building Authority RB,
Series I
6.400%, 10/01/04 650 678
6.500%, 10/01/05 500 521
4.750%, 10/15/18 1,100 921
State Building Authority RB,
Series I, AMBAC
6.000%, 10/01/02 300 310
5.500%, 10/01/07 1,000 1,016
State Building Authority RB,
Series II
6.000%, 10/01/00 100 101
6.500%, 10/01/05 120 125
State Building Authority RB,
Series II, AMBAC
6.250%, 10/01/04 300 313
State Building Authority RB,
Series II, FSA
6.200%, 10/01/02 250 260
State Financial Assurance Authority
RB, Underground Storade Tank,
Series I, AMBAC
5.000%, 05/01/01 1,000 1,006
State Higher Education Facilities
Authority RB, Thomas M. Cooley
College Project
4.500%, 05/01/04 750 726
State Hospital Authority RB, Detroit
Medical Center, Series A
7.100%, 08/15/01 165 165
State Hospital Authority RB, Henry Ford
Health Center, Series A
5.100%, 11/15/07 600 580
State Hospital Authority RB, Oakwood
Hospital Group, Pre-refunded
@ 102, FGIC (A)
7.000%, 07/01/00 500 516
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO(continued) (000) (000)
- --------------------------------------------------------------------------------
State Hospital Finance Authority RB
5.000%, 05/15/12 $1,000 $ 837
State Hospital Finance Authority RB,
Botsford Group, Series A, MBIA
4.400%, 02/15/04 1,000 970
State Hospital Finance Authority RB,
Detroit Medical Center Project
6.250%, 08/15/13 675 586
State Hospital Finance Authority RB,
Detroit Medical Group, Series A ,
AMBAC
5.000%, 08/15/05 2,180 2,161
State Hospital Finance Authority RB,
McLaren Group, Series A
5.000%, 10/15/04 1,000 983
5.200%, 10/15/06 750 732
State Hospital Finance Authority RB,
McLaren Group, Series A, ETM
7.200%, 09/15/00 200 204
State Hospital Finance Authority RB,
MidMichigan Group, Series A, FSA
5.500%, 06/01/08 1,400 1,409
State Hospital Finance Authority RB,
Sisters of Mercy Project, FSA
5.700%, 02/15/01 250 254
State Hospital Finance Authority RB,
Sisters of Mercy Project, MBIA
4.900%, 08/15/05 1,000 989
State Hospital Finance Authority RB,
Sparrow Group, MBIA
5.200%, 11/15/07 480 476
5.300%, 11/15/08 450 447
5.400%, 11/15/09 450 448
State Hospital Finance Authority RB,
St. John Hospital & Medical Center,
AMBAC
5.000%, 05/15/04 750 753
State Hospital Finance Authority RB,
St. John Hospital & Medical Center,
Series A, AMBAC
5.650%, 05/15/03 300 308
State Housing Development Authority RB,
Greenwood Villa Project, FSA
6.500%, 09/15/07 160 167
The accompanying notes are an integral part of the financial statements.
32
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
January 31, 2000
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO(continued) (000) (000)
- --------------------------------------------------------------------------------
State Municipal Bond Authority RB
5.500%, 10/01/06 $ 810 $ 826
5.150%, 10/01/08 1,000 994
State Municipal Bond Authority
RB, Series A
6.000%, 10/01/02 1,000 1,034
6.500%, 05/01/07 250 263
State Power Supply System RB, MBIA
5.800%, 11/01/05 400 414
State Public Power Agency RB,
Belle River
Project, Series A
5.400%, 01/01/01 250 253
5.200%, 01/01/04 300 303
State Public Power Agency RB,
Campbell
Project, Series A, AMBAC
5.000%, 01/01/03 500 502
5.500%, 01/01/06 500 508
State Strategic Fund RB, Ford
Motor Project,
Series A
7.100%, 02/01/06 350 382
State Strategic Fund RB, NSF Internal
Project, Series A, LOC
5.400%, 08/01/10 1,105 1,064
5.500%, 08/01/11 1,065 1,024
State Trunk Line RB, Series A
5.625%, 10/01/03 500 512
State Trunk Line RB, Series B-2
5.750%, 10/01/04 350 362
State University RB, Series A,
Pre-refunded
@ 101 (A)
6.125%, 08/01/02 1,250 1,302
Traverse City, Area Public
Schools GO,
Series I, MBIA
7.250%, 05/01/05 950 1,046
Traverse City, Area Public Schools GO,
Series I, Pre-refunded @ 101.50 (A)
7.000%, 05/01/01 100 105
Traverse City, Area Public Schools GO,
Series II, Pre-refunded
@ 101.50 (A)
7.000%, 05/01/01 200 209
Troy, City School District GO
4.750%, 05/01/08 1,000 958
Troy, City School District GO,
Pre-refunded
@ 101.50 (A)
6.000%, 05/01/01 250 258
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO(continued) (000) (000)
- --------------------------------------------------------------------------------
University of Michigan, Hospital RB,
Series A
5.800%, 12/01/05 $ 400 $ 410
University of Michigan, Hospital RB,
Series A-1
5.250%, 12/01/09 1,000 970
University of Michigan, Major Capital
Projects RB, Series B
5.300%, 04/01/05 250 254
Utica, Community Schools GO
5.375%, 05/01/02 200 203
5.750%, 05/01/07 500 514
Walled Lake, School District GO, MBIA
5.500%, 05/01/02 500 509
Warren, Building Authority RB,
Pre-refunded @ 102, FSA (A)
8.750%, 11/01/00 100 105
Washtenaw County, Community College
GO, Series A
4.350%, 04/01/05 1,375 1,325
4.900%, 04/01/06 1,200 1,185
Waterford Township, School
District GO,
QSBLF
4.850%, 06/01/10 1,450 1,368
Wayne County, Airport Authority RB,
Detroit Metro Airport Project,
Series A, MBIA
6.400%, 12/01/01 200 207
Wayne County, Building Authority RB,
Series A, MBIA
5.625%, 06/01/04 1,000 1,031
Wixon County, Public Improvements
GO, AMBAC
4.750%, 05/01/11 1,000 923
Wyandotte, Building Authority
RB, ETM
7.000%, 01/01/03 100 101
Wyandotte, Electric Authority RB,
Pre-refunded @ 100,
MBIA (A)
6.250%, 10/01/04 1,700 1,796
Wyandotte, Finance Authority
RB, MBIA
6.100%, 06/01/02 500 516
- --------------------------------------------------------------------------------
Total Michigan 88,151
- --------------------------------------------------------------------------------
Total Municipal Bonds
(Cost $89,073) 88,151
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
33
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
January 31, 2000
MICHIGAN TAX FREE BOND Value
PORTFOLIO(continued) Shares (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENT -- 0.8%
SEI Institutional Tax-Free Portfolio 700,593 $ 701
- --------------------------------------------------------------------------------
Total Cash Equivalent
(Cost $701) 701
- --------------------------------------------------------------------------------
Total Investments -- 99.1%
(Cost $89,774) 88,852
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET -- 0.9% 808
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization --- no par value)
based on 9,202,196 outstanding
shares of beneficial interest 90,304
Portfolio Shares of Class A (unlimited
authorization -- no par value)
based on 22,102 outstanding
shares of beneficial interest 232
Undistributed Net Investment Income 28
Accumulated Net Realized Gain on Investments 18
Net Unrealized Depreciation on Investments (922)
- --------------------------------------------------------------------------------
Total Net Assets -- 100.0% $89,660
- --------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Class I $9.72
Net Asset Value and Redemption
Price Per Share -- Class A $9.72
Maximum Offering Price per Share --
Class A ($9.72 / 95.5%) $10.18
- --------------------------------------------------------------------------------
MICHIGAN TAX FREE BOND
PORTFOLIO(concluded)
- --------------------------------------------------------------------------------
(A) Pre-refunded Security. The pre-refunded date is shown as the maturity date
on the Statement of Net Assets.
ETM -- Escrowed to Maturity
GO -- General Obligation
LOC -- Securities are held in connection with a letter of credit
issued by a major bank or other financial institution.
RB -- Revenue Bond
The following organizations have provided underlying credit supportfor
securities listed above, as indicated.
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Financial Guaranty Insurance Corporation
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Insurance Association
QSBLF -- Qualified School Bond Loan Fund
The accompanying notes are an integral part of the financial statements.
34
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
January 31, 2000
Face
PRIME OBLIGATION MONEY Amount Value
MARKET PORTFOLIO (000) (000)
- --------------------------------------------------------------------------------
COMMERCIAL PAPER -- 40.0%
FINANCIAL SERVICES -- 22.6%
Centric Capital
6.039%, 04/17/00 $2,000 $ 1,975
Corporate Asset Funding (A)
6.039%, 04/07/00 3,000 3,000
Corporate Receivables (A)
5.873%, 02/16/00 4,000 4,000
Falcon Asset Securitization
6.038%, 04/17/00 2,000 1,975
Goldman Sachs Group
5.739%, 02/02/00 3,000 3,000
Island Finance Puerto Rico
5.836%, 02/14/00 1,300 1,297
Kitty Hawk Funding
5.774%, 02/11/00 3,500 3,494
Park Avenue Receivables
5.831%, 02/01/00 3,500 3,500
Preferred Receivables Funding
6.120%, 02/10/00 3,000 2,996
Variable Funding Capital
5.705%, 02/02/00 2,500 2,500
- --------------------------------------------------------------------------------
Total Financial Services 27,737
- --------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 1.6%
Dean Foods
6.115%, 02/14/00 2,000 1,996
- --------------------------------------------------------------------------------
Total Food, Beverage & Tobacco 1,996
- --------------------------------------------------------------------------------
GAS/NATURAL GAS -- 2.0%
National Fuel & Gas
6.169%, 02/03/00 2,500 2,499
- --------------------------------------------------------------------------------
Total Gas/Natural Gas 2,499
- --------------------------------------------------------------------------------
INSURANCE -- 3.2%
Aon
5.863%, 02/23/00 4,000 3,986
- --------------------------------------------------------------------------------
Total Insurance 3,986
- --------------------------------------------------------------------------------
PETROLEUM REFINING -- 3.3%
Fina Oil & Chemical
6.181%, 02/04/00 2,500 2,499
5.865%, 03/24/00 1,500 1,488
- --------------------------------------------------------------------------------
Total Petroleum Refining 3,987
- --------------------------------------------------------------------------------
Face
PRIME OBLIGATION MONEY Amount Value
MARKET PORTFOLIO(continued) (000) (000)
- --------------------------------------------------------------------------------
PRINTING & PUBLISHING -- 2.0%
Times Mirror
5.810%, 02/18/00 $2,500 $ 2,493
- --------------------------------------------------------------------------------
Total Printing & Publishing 2,493
- --------------------------------------------------------------------------------
RETAIL -- 3.3%
Albertson's (A)
5.761%, 02/14/00 4,000 3,999
- --------------------------------------------------------------------------------
Total Retail 3,999
- --------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATION -- 2.0%
GTE
5.805%, 02/16/00 2,500 2,494
- --------------------------------------------------------------------------------
Total Telephones & Telecommunication 2,494
- --------------------------------------------------------------------------------
Total Commercial Paper
(Cost $49,191) 49,191
- --------------------------------------------------------------------------------
YANKEE COMMERCIAL PAPER -- 8.3%
Apreco
6.130%, 02/02/00 1,294 1,294
6.300%, 02/25/00 3,000 2,988
Cosmair
5.776%, 02/03/00 500 500
Greyhawk Funding LLC
6.053%, 02/04/00 2,000 1,999
Woolwich PLC
6.025%, 04/13/00 3,500 3,459
- --------------------------------------------------------------------------------
Total Yankee Commercial Paper
(Cost $10,240) 10,240
- --------------------------------------------------------------------------------
YANKEE CERTIFICATE OF DEPOSIT -- 20.8%
Bank of Scotland
5.725%, 07/03/00 2,500 2,500
Banque Nationale de Paris
5.230%, 03/10/00 4,000 4,000
Bayerische Hypoveren
5.010%, 02/07/00 5,000 5,000
Deutsche Bank AG
6.550%, 01/22/01 2,500 2,499
National Bank of Canada
5.170%, 04/10/00 2,000 2,000
Royal Bank of Canada
5.120%, 03/21/00 3,000 3,000
Toronto Dominion NY
5.050%, 02/14/00 4,000 4,000
The accompanying notes are an integral part of the financial statements.
35
<PAGE>
STATEMENT OF NET ASSETS (concluded) GOLDEN OAK FAMILY OF FUNDS
January 31, 2000
Face
PRIME OBLIGATION MONEY Amount Value
MARKET PORTFOLIO(continued) (000) (000)
- --------------------------------------------------------------------------------
UBS AG
5.760%, 07/05/00 $2,500 $ 2,500
- --------------------------------------------------------------------------------
Total Yankee Certificate of Deposit
(Cost $25,499) 25,499
- --------------------------------------------------------------------------------
CORPORATE BONDS -- 13.0%
AT&T (A)
5.990%, 04/13/00 3,000 2,999
Ford Motor Credit (A)
6.038%, 02/18/00 4,000 3,998
GMAC, MTN
6.375%, 09/19/00 1,000 1,000
JP Morgan, MTN (A)
5.743%, 02/18/00 1,000 1,000
National Rural, MTN (A)
6.141%, 03/25/00 2,500 2,500
Unum, MTN (A)
6.120%, 03/20/00 2,000 1,999
Xerox, MTN (A)
6.044%, 02/08/00 2,500 2,499
- --------------------------------------------------------------------------------
Total Corporate Bonds
(Cost $15,995) 15,995
- --------------------------------------------------------------------------------
BANK NOTES -- 7.3%
Fifth Third Bancorp
5.710%, 02/28/00 2,000 2,000
First USA Bank
6.050%, 09/18/00 2,000 1,999
Key Bank NA
6.500%, 01/29/01 1,000 999
Key Bank NA (A)
6.220%, 03/16/00 2,000 2,000
Nationsbank (A)
6.171%, 03/06/00 2,000 2,002
- --------------------------------------------------------------------------------
Total Bank Notes
(Cost $9,000) 9,000
- --------------------------------------------------------------------------------
FUNDING AGREEMENTS -- 4.9%
Monumental Life (A)
6.310%, 02/01/00 3,000 3,000
Travelers Insurance (A)
6.166%, 03/01/00 3,000 3,000
- --------------------------------------------------------------------------------
Total Funding Agreements
(Cost $6,000) 6,000
- --------------------------------------------------------------------------------
Face
PRIME OBLIGATION MONEY Amount Value
MARKET PORTFOLIO(concluded) (000) (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 5.0%
Lehman Brothers (B)
5.800%, dated 01/31/00, matures
02/01/00, repurchase price
$6,200,999 (collateralized by
U.S. Government Agency Obligations,
total market value:
$6,325,723) $6,200 $ 6,200
- --------------------------------------------------------------------------------
Total Repurchase Agreement
(Cost $6,200) 6,200
- --------------------------------------------------------------------------------
Total Investments -- 99.3%
(Cost $122,125) 122,125
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET -- 0.7% 802
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value)
based on 114,360,856 outstanding
shares of beneficial interest 114,361
Portfolio Shares of Class A (unlimited
authorization -- no par value)
based on 8,578,550 outstanding
shares of beneficial interest 8,578
Undistributed Net Investment Income 3
Accumulated Net Realized Loss on Investments (15)
- --------------------------------------------------------------------------------
Total Net Assets -- 100.0% $122,927
- --------------------------------------------------------------------------------
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 shown on the Statement of Net Assets is the
rate in effect on January 31, 2000.
The maturity date is shown as the next reset date.
(B) Tri-Party Repurchase Agreement
LLC -- Limited Liability Company
MTN -- Medium Term Note
The accompanying notes are an integral part of the financial statements.
36
<PAGE>
STATEMENT OF OPERATIONS (000) GOLDEN OAK FAMILY OF FUNDS
For the Year or Period Ended January 31, 2000
<TABLE>
<CAPTION>
Inter-
mediate- Michigan Prime
Tax-Managed Small Cap Term Tax Free Obligation
Growth Value Equity Value Income Bond Money Market
Portfolio Portfolio Portfolio(2) Portfolio(3) Portfolio Portfolio Portfolio
- ---------------------------------------------------------------------------------------------------------------------------
Investment Income:
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend Income.............. $ 433 $ 730 $ 339 $ 204 $ -- $ -- $ --
Interest Income.............. 84 95 29 101 9,920 4,565 6,719
Total Investment Income..... 517 825 368 305 9,920 4,565 6,719
- ---------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees...... 205 173 110 49 780 461 379
Less: Waiver of Investment
Advisory Fees............... -- -- (37) (29) (238) (154) (260)
Investment Sub-Advisory
Fees........................ 241 249 130 93 -- -- --
Administration Fees........... 120 114 65 30 312 184 253
Transfer Agent Fees........... 31 31 22 11 46 36 43
Custodian Fees................ 5 5 3 1 15 9 12
Professional Fees............. 15 15 32 17 44 25 35
Registration Fees............. 8 10 16 11 16 8 12
Distribution Fees(1).......... 14 11 -- 4 16 1 17
Trustee Fees.................. 4 4 3 1 11 7 9
Printing Expenses............. 6 6 11 7 18 11 15
Other Expenses................ 3 13 3 2 10 12 8
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses, Net of Waivers 652 631 358 197 1,030 600 523
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment
Income (Loss)................. (135) 194 10 108 8,890 3,965 6,196
- ---------------------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss)
on Securities Sold.......... 14,035 3,992 10,547 794 (1,476) 24 --
Net Change in Unrealized
Appreciation (Depreciation)
on Investments.............. 3,733 342 (9,345) (2,037) (13,810) (5,549) --
Net Realized and Unrealized
Gain (Loss) on Investments.. 17,768 4,334 1,202 (1,243) (15,286) (5,525) --
Net Increase (Decrease)
in Net Assets Resulting
From Operations............. $17,633 $4,528 $ 1,212 $(1,135) $ (6,396) $(1,560) $ 6,196
============================================================================================================================
<FN>
Amounts designated as "--" are either $0 or have been rounded to $0.
(1) All distribution fees are incurred in the Class A Shares.
(2) Golden Oak Tax-Managed Equity Portfolio commenced operations April 30, 1999.
(3) Golden Oak Small Cap Value Portfolio commenced operations September 1, 1999.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
37
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
For the Years or Period Ended January 31,
<TABLE>
<CAPTION>
Growth Value
Portfolio Portfolio
------------------------ -------------------------
2/1/99 to 2/1/98 to 2/1/99 to 2/1/98 to
1/31/00 1/31/99 1/31/00 1/31/99
- --------------------------------------------------------------------------------------------------------------
Investment Operations:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) $ (135) $ 40 $ 194 $ 165
Net Realized Gain (Loss) on Securities Sold 14,035 7,576 3,992 3,121
Net Change in Unrealized Appreciation (Depreciation)
on Investments 3,733 10,187 342 1,759
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from
Investment Operations 17,633 17,803 4,528 5,045
- ---------------------------------------------------------------------------------------------------------------
Distributions:
Net Investment Income
Class I -- (46) (191) (181)
Class A -- -- (8) (1)
Realized Net Gains
Class I (9,828) (6,701) (2,795) (4,673)
Class A (1,547) (165) (385) (82)
- ---------------------------------------------------------------------------------------------------------------
Total Distributions (11,375) (6,912) (3,379) (4,937)
- ---------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Class I:
Proceeds from Shares Issued 17,489 22,070 16,869 21,407
Value from Shares Issued in Connection with Acquisition
of Common Trust Fund Assets (See note 8) -- -- -- --
Reinvestment of Cash Distributions 7,437 2 2,288 13
Cost of Shares Redeemed (13,940) (19,480) (7,956) (5,916)
- ---------------------------------------------------------------------------------------------------------------
Total Class I Share Transactions 10,986 2,592 11,201 15,504
- ---------------------------------------------------------------------------------------------------------------
Class A:
Proceeds from Shares Issued 9,868 1,986 9,702 937
Reinvestment of Cash Distributions 1,544 165 392 82
Cost of Shares Redeemed (3,967) (1,144) (3,799) (20)
- ---------------------------------------------------------------------------------------------------------------
Total Class A Share Transactions 7,445 1,007 6,295 999
- ---------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Capital Share
Transactions 18,431 3,599 17,496 16,503
- ---------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets 24,689 14,490 18,645 16,611
- ---------------------------------------------------------------------------------------------------------------
Net Assets:
- ---------------------------------------------------------------------------------------------------------------
Beginning of Period 51,037 36,547 47,584 30,973
- ---------------------------------------------------------------------------------------------------------------
End of Period $75,726 $51,037 $66,229 $47,584
- ---------------------------------------------------------------------------------------------------------------
Shares Issued and Redeemed
Class I:
Shares Issued 1,016 1,523 1,750 2,364
Shares Issued in Connection with Acquisition of Common
Trust Fund Assets (See note 8) -- -- -- --
Shares Issued in Lieu of Cash Distributions 424 1 240 1
Shares Redeemed (811) (1,323) (806) (612)
- ---------------------------------------------------------------------------------------------------------------
Total Class I Share Transactions 629 201 1,184 1,753
- ---------------------------------------------------------------------------------------------------------------
Class A:
Shares Issued 590 144 984 106
Shares Issued in Lieu of Cash Distributions 92 13 42 10
Shares Redeemed (215) (85) (388) (2)
- ---------------------------------------------------------------------------------------------------------------
Total Class A Share Transactions 467 72 638 114
- ---------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Capital Shares 1,096 273 1,822 1,867
===============================================================================================================
</TABLE>
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
38
<TABLE>
<CAPTION>
<PAGE>
Tax-Managed Small Cap Intermediate-Term
Equity Value Income
Portfolio (1) Portfolio (2) Portfolio
------------ ------------- -----------------------
5/3/99 to 9/1/99 to 2/1/99 to 2/1/98 to
1/31/00 1/31/00 1/31/00 1/31/99
- -----------------------------------------------------------------------------------------------------------------
Investment Operations:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) $ $ 10 $ 108 $ 8,890 $ 7,213
Net Realized Gain (Loss) on Securities Sold 10,547 794 (1,476) 1,046
Net Change in Unrealized Appreciation (Depreciation)
on Investments (9,345) (2,037) (13,810) 2,764
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from
Investment Operations 1,212 (1,135) (6,396) 11,023
- ---------------------------------------------------------------------------------------------------------------
Distributions:
Net Investment Income
Class I (52) (97) (8,548) (7,176)
Class A -- (7) (342) (36)
Realized Net Gains
Class I (124) -- -- (84)
Class A (1) -- -- (1)
- ---------------------------------------------------------------------------------------------------------------
Total Distributions (177) (104) (8,890) (7,297)
- ---------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Class I:
Proceeds from Shares Issued 536 42,856 51,747 43,585
Value from Shares Issued in Connection with Acquisition
of Common Trust Fund Assets (See note 8) 45,238 -- -- --
Reinvestment of Cash Distributions 125 -- 38 3
Cost of Shares Redeemed (6,624) (1,226) (37,533) (25,078)
- ---------------------------------------------------------------------------------------------------------------
Total Class I Share Transactions 39,275 41,630 14,252 18,510
- ---------------------------------------------------------------------------------------------------------------
Class A:
Proceeds from Shares Issued 333 4,023 11,082 2,168
Reinvestment of Cash Distributions 1 7 331 27
Cost of Shares Redeemed -- (562) (6,946) (91)
- ---------------------------------------------------------------------------------------------------------------
Total Class A Share Transactions 334 3,468 4,467 2,104
- ---------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Capital Share
Transactions 39,609 45,098 18,719 20,614
- ---------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets 40,644 43,859 3,433 24,340
- ---------------------------------------------------------------------------------------------------------------
Net Assets:
- ---------------------------------------------------------------------------------------------------------------
Beginning of Period -- -- 150,340 126,000
- ---------------------------------------------------------------------------------------------------------------
End of Period $$40,644 $43,859 $153,773 $150,340
- ---------------------------------------------------------------------------------------------------------------
Shares Issued and Redeemed
Class I:
Shares Issued 53 4,380 5,296 4,282
Shares Issued in Connection with Acquisition of Common
Trust Fund Assets (See note 8) 4,524 -- -- --
Shares Issued in Lieu of Cash Distributions 13 -- 4 --
Shares Redeemed (659) (129) (3,887) (2,460)
- ---------------------------------------------------------------------------------------------------------------
Total Class I Share Transactions 3,931 4,251 1,413 1,822
- ---------------------------------------------------------------------------------------------------------------
Class A:
Shares Issued 33 402 1,148 211
Shares Issued in Lieu of Cash Distributions -- 1 35 3
Shares Redeemed -- (57) (728) (9)
- ---------------------------------------------------------------------------------------------------------------
Total Class A Share Transactions 33 346 455 205
- ---------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Capital Shares 3,964 4,597 1,868 2,027
===============================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Michigan Prime Obligation
Tax Free Bond Money Market
Portfolio Portfolio
----------------------- ----------------------------
2/1/99 to 2/1/98 to 2/1/99 to 2/1/98 to
1/31/00 1/31/99 1/31/00 1/31/99
- --------------------------------------------------------------------------------------------------------------
Investment Operations:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) $ 3,965 $ 3,825 $ 6,196 $ 7,136
Net Realized Gain (Loss) on Securities Sold 24 57 -- (3)
Net Change in Unrealized Appreciation (Depreciation)
on Investments (5,549) 880 -- --
- --------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from
Investment Operations (1,560) 4,762 6,196 7,133
- --------------------------------------------------------------------------------------------------------------
Distributions:
Net Investment Income
Class I (3,925) (3,820) (5,865) (6,809)
Class A (18) (5) (331) (327)
Realized Net Gains
Class I -- (60) -- --
Class A -- -- -- --
- --------------------------------------------------------------------------------------------------------------
Total Distributions (3,943) (3,885) (6,196) (7,136)
- --------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Class I:
Proceeds from Shares Issued 21,235 25,629 203,890 238,749
Value from Shares Issued in Connection with Acquisition
of Common Trust Fund Assets (See note 8) -- -- -- --
Reinvestment of Cash Distributions 4 1 612 6
Cost of Shares Redeemed (16,428) (21,945) (243,801) (213,080)
- --------------------------------------------------------------------------------------------------------------
Total Class I Share Transactions 4,811 3,685 (39,299) 25,675
- --------------------------------------------------------------------------------------------------------------
Class A:
Proceeds from Shares Issued 565 276 17,939 16,403
Reinvestment of Cash Distributions 17 5 328 323
Cost of Shares Redeemed (574) (65) (16,215) (16,582)
- --------------------------------------------------------------------------------------------------------------
Total Class A Share Transactions 8 216 2,052 144
- --------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Capital Share
Transactions 4,819 3,901 (37,247) 25,819
- -------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets (684) 4,778 (37,247) 25,816
- -------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period 90,344 85,566 160,174 134,358
- -------------------------------------------------------------------------------------------------------------
End of Period $89,660 $90,344 $122,927 $160,174
- -------------------------------------------------------------------------------------------------------------
Shares Issued and Redeemed
Class I:
Shares Issued 2,126 2,515 203,890 238,749
Shares Issued in Connection with Acquisition of Common
Trust Fund Assets (See note 8) -- -- -- --
Shares Issued in Lieu of Cash Distributions -- -- 612 6
Shares Redeemed (1,648) (2,148) (243,801) (213,080)
- -------------------------------------------------------------------------------------------------------------
Total Class I Share Transactions 478 367 (39,299) 25,675
- -------------------------------------------------------------------------------------------------------------
Class A:
Shares Issued 56 27 17,939 16,403
Shares Issued in Lieu of Cash Distributions 2 -- 328 323
Shares Redeemed (58) (6) (16,215) (16,582)
- -------------------------------------------------------------------------------------------------------------
Total Class A Share Transactions -- 21 2,052 144
- -------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Capital Shares 478 388 (37,247) 25,819
=============================================================================================================
<FN>
(1) Golden Oak Tax-Managed Equity Portfolio commenced operations on April 30, 1999.
(2) Golden Oak Small Cap Value Portfolio commenced operations on September 1, 1999.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
39
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For a Share Outstanding Throughout the Period
For the Periods Ended January 31,
NET REALIZED DISTRIBUTIONS NET NET
ASSET AND -------------------- ASSET ASSETS RATIO OF
VALUE NET UNREALIZED NET NET VALUE END EXPENSES
BEGINNING INVESTMENT GAIN (LOSS) INVESTMENT REALIZED END TOTAL OF PERIOD TO AVERAGE
OF PERIOD INCOME(LOSS) ON INVESTMENTS INCOME GAIN OF PERIOD RETURN+ (000) NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------
GROWTH PORTFOLIO CLASS I
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 $16.16 $ (0.03) $ 4.75 $ -- $(3.03) $17.85 30.67% $ 65,891 1.06%
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
GROWTH PORTFOLIO CLASS A
2000 $15.89 $ (0.06) $ 4.63 $ -- $(3.03) $17.43 30.23% $ 9,835 1.31%
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
VALUE PORTFOLIO CLASS I
2000 $ 9.17 $ 0.03 $ 0.78 $(0.03) $(0.50) $ 9.45 8.92% $ 59,091 1.09%
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
2000 $ 9.14 $ 0.01 $ 0.77 $(0.01) $(0.50) $ 9.41 8.61% $ 7,138 1.34%
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*
TAX-MANAGED EQUITY PORTFOLIO CLASS I
2000(2) $10.00 $ -- $ 0.30 $(0.01) $(0.03) $10.26 3.03% $ 40,305 1.10%*
TAX-MANAGED EQUITY PORTFOLIO CLASS A
2000(2) $10.00 $(0.01) $ 0.29 $(0.01) $(0.03) $10.24 2.77% $ 339 1.35%*
SMALL CAP VALUE PORTFOLIO CLASS I
2000(3) $10.00 $ 0.03 $(0.46) $(0.03) $ -- $ 9.54 (4.33)% $ 40,554 1.35%*
SMALL CAP VALUE PORTFOLIO CLASS A
2000(3) $10.00 $ 0.03 $(0.47) $(0.02) $ -- $ 9.54 (4.42)% $ 3,305 1.60%*
INTERMEDIATE-TERM INCOME PORTFOLIO CLASS I
2000 $10.32 $ 0.55 $(0.97) $(0.55) $ -- $ 9.35 (4.07)% $147,549 0.65%
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
INTERMEDIATE-TERM INCOME PORTFOLIO CLASS A
2000 $10.31 $ 0.53 $(0.96) $(0.53) $ -- $ 9.35 (4.22)% $ 6,224 0.90%
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
</TABLE>
RATIO OF
RATIO OF NET INVESTMENT
RATIO OF EXPENSES INCOME
NET TO AVERAGE TO AVERAGE
INCOME NET ASSETS NET ASSETS PORTFOLIO
TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER
NET ASSETS WAIVERS) WAIVERS) RATE
- ---------------------------------------------------------------------------
GROWTH PORTFOLIO CLASS I
2000 (0.19)% 1.06% (0.19)% 82.69%
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
GROWTH PORTFOLIO CLASS A
2000 (0.52)% 1.31% (0.52)% 82.69%
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
VALUE PORTFOLIO CLASS I
2000 0.36% 1.09% 0.36% 102.11%
1999 0.44 1.17 0.37 172.09
1998(1) 0.72* 1.28* 0.54* 90.97
VALUE PORTFOLIO CLASS A
2000 0.10% 1.34% 0.10% 102.11%
1999 0.20 1.42 0.13 172.09
1998(1) 0.31* 1.53* 0.13* 90.97
TAX-MANAGED EQUITY PORTFOLIO CLASS I
2000(2) 0.03%* 1.21%* (0.08)%* 32.30%
TAX-MANAGED EQUITY PORTFOLIO CLASS A
2000(2) (0.34)%* 1.49%* (0.48)%* 32.30%
SMALL CAP VALUE PORTFOLIO CLASS I
2000(3) 0.76%* 1.55%* 0.56%* 10.86%
SMALL CAP VALUE PORTFOLIO CLASS A
2000(3) 0.72%* 1.83%* 0.49%* 10.86%
INTERMEDIATE-TERM INCOME PORTFOLIO CLASS I
2000 5.70% 0.80% 5.55% 24.93%
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
INTERMEDIATE-TERM INCOME PORTFOLIO CLASS A
2000 5.52% 1.05% 5.37% 24.93%
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
The accompanying notes are an integral part of the financial statements.
40
<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 (LOSS) ON INVESTMENTS INCOME GAIN OF PERIOD RETURN+ (000) NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------
MICHIGAN TAX FREE BOND PORTFOLIO CLASS I
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 $10.33 $ 0.43 $(0.61) $(0.43) $ -- $ 9.72 (1.79)% $ 89,445 0.65%
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
2000 $10.33 $ 0.40 $(0.61) $(0.40) $ -- $ 9.72 (2.03)% $ 215 0.90%
1999 10.24 0.46 0.10 (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*
PRIME OBLIGATION MONEY MARKET PORTFOLIO CLASS I
2000 $ 1.00 $ 0.05 $ -- $(0.05) $ -- $ 1.00 5.04% $114,349 0.40%
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
PRIME OBLIGATION MONEY MARKET PORTFOLIO CLASS A
2000 $ 1.00 $ 0.05 $ -- $(0.05) $ -- $ 1.00 4.77% $ 8,578 0.65%
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
=============================================================================================================================
</TABLE>
RATIO OF
RATIO OF RATIO OF NET 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
- --------------------------------------------------------------------------------
MICHIGAN TAX FREE BOND PORTFOLIO CLASS I
2000 4.30% 0.82% 4.13% 2.42%
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
2000 4.01% 1.07% 3.84% 2.42%
1999 4.07 1.06 3.91 6.55
1998(1) 4.15* 1.07* 3.98* 9.77
PRIME OBLIGATION MONEY MARKET PORTFOLIO CLASS I
2000 4.91% 0.60% 4.71% --
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 --
PRIME OBLIGATION MONEY MARKET PORTFOLIO CLASS A
2000 4.74% 0.86% 4.53% --
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 --
================================================================================
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) Golden Oak Value &Michigan Tax Free Bond Portfolios commenced operations on
June 23, 1997. All ratios for the period have been annualized. Total returns
are for the period indicated and have not been annualized.
(2) Golden Oak Tax-Managed Equity Portfolio commenced operations on April 30,
1999. All ratios for the period have been annualized. Total returns are
for the period indicated and have not been annualized.
3) Golden Oak Small Cap Value Portfolio commenced operations on September 1,
1999. All ratios for the period have been annualized. Total Returns are for
the period indicated and have not been annualized.
The accompanying notes are an integral part of the financial statements.
41
<PAGE>
NOTES TO FINANCIAL STATEMENTS GOLDEN OAK FAMILY OF FUNDS
January 31, 2000
1. Organization:
THE GOLDEN OAK FAMILY OF FUNDS are separate investment portfolios of The
Arbor Fund (the "Trust"). The Trust was organized as a Massachusetts business
trust under a Declaration of Trust dated July 24, 1992 and had no operations
through February 1, 1993 other than those related to organizational matters and
the sale of initial shares to SEI Investments Mutual Funds Services (the
"Administrator") on October 9, 1992. SEI Investments Management Corporation
("SEIInvestments"), 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, Golden Oak Tax-Managed
Equity Portfolio, Golden Oak Small Cap 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.
42
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) GOLDEN OAK FAMILY OF FUNDS
January 31, 2000
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 PER SHARE -- The net asset value per share of each Portfolio is
calculated each business day. In general, it is computed by dividing the assets
of each Portfolio, less its liabilities, by the number of outstanding shares of
the Portfolio.
CLASSES OF SHARES -- Class specific expenses are borne by that
class. Income, expenses and realized and unrealized gains and losses are
allocated to the respective classes on the basis of their relative daily net
assets.
EXPENSES -- Expenses that are directly related to one of the Portfolios
are charged directly to that Portfolio. Other operating expenses of the Trust
are prorated to the Portfolios on the basis of relative net assets. Class A
bears a class specific 12b-1 fee.
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. Distributions from net investment income and net realized capital
gains are determined in accordance with U.S. federal income tax regulations,
which may differ from those amounts determined under generally accepted
accounting principles. These book/tax differences are either temporary or
permanent in nature. To the extent these differences are permanent, they are
charged or credited to paid-in-capital in the period that the difference arises.
On the Statements of Net Assets, the following adjustments were made (000):
ACCUMULATED UNDISTRIBUTED
NET REALIZED NET INVESTMENT PAID-IN-
PORTFOLIO GAIN (LOSS) INCOME CAPITAL
- ----------------------------------------------------
Growth $ (135) 135 --
Tax-Managed
Equity (42) 42 --
Michigan
Tax Free Bond (6) 6 --
3. Administration and Distribution Agreements:
The Trust and the Administrator have entered into an Administration Agreement
(the "Administration Agreement"). Under terms of the Administration Agreement,
the Administrator is entitled to a fee that is calculated daily and paid monthly
at an annual rate of .20% of the average daily net assets of each of the
Portfolios. There is a minimum annual administration fee of $50,000 for each of
the Golden Oak Value Portfolio, Golden Oak Tax-Managed Equity Portfolio, and the
Golden Oak Michigan Tax Free Bond Portfolio.
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
43
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) GOLDEN OAK FAMILY OF FUNDS
January 31, 2000
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 Agreements:
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,
Tax-Managed Equity and Small Cap Value Portfolios, .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 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 a portion of
its fees 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 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 and Tax-Managed Equity Portfolios 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 Portfolios.
Systematic Financial Management, L.P. serves as the investment sub-adviser for
the Value and Small Cap Value Portfolios pursuant to a sub-advisory agreement
dated 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 Value Portfolio and .65% of the average daily net assets
of the Small Cap Value Portfolio.
5. Transactions with Affiliates:
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.
The Golden Oak Growth, Value, Small Cap Value, and Intermediate-Term Income
Portfolios have entered into agreements with SEI Investments to manage the
investments of repurchase agreements for the Portfolios. For its services,
SEIInvestments received $7,558 for the period ended January 31, 2000.
44
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) GOLDEN OAK FAMILY OF FUNDS
January 31, 2000
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, 2000, were
as follows:
Inter-
Tax- Small mediate- Michigan
Managed Cap Term Tax Free
Growth Value Equity Value Income Bond
(000) (000) (000) (000) (000) (000)
- -----------------------------------------------------------------------
Purchases:
U.S. Gov't $ -- $ -- $ -- $ -- $ 23,672 $ --
Other .... 56,982 68,445 13,637 44,299 31,991 8,065
Sales:
U.S. Gov't $ -- $ -- $ -- $ -- $ 9,441 $ --
Other .... 48,408 56,000 17,321 3,784 25,439 2,141
At January 31, 2000, 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,
2000 for the Equity and Bond Portfolios are as follows:
Inter-
Tax- Small mediate- Michigan
Managed Cap Term Tax Free
Growth Value Equity Value Income Bond
(000) (000) (000) (000) (000) (000)
- ------------------------------------------------------------------------
Aggregate
Gross
Unrealized
Appreciation $22,230 $13,354 $22,596 $ 2,846 $ 30 $ 902
Aggregate
Gross
Unrealized
Depreciation (2,270) (2,670) (201) (4,883) (8,717) (1,824)
------- ------- ------- ------- ------ ------
Net Unrealized
Appreciation/
(Depreciation) $19,960 $10,684 $22,395 $(2,037) $(8,687) $ (922)
======= ======= ======= ======= ======= ======
At January 31, 2000, the Portfolios had available realized capital losses and
post-October losses to offset future net capital gains as follows through fiscal
year ending:
POST
OCTOBER 31, 1999
2005 2008 DEFERRED LOSSES
PORTFOLIO (000) (000) (000)
- ----------------------------------------------------
Prime Obligation $12 $ 2 $ 1
Intermediate Term
Income -- 242 1,234
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.
45
<PAGE>
NOTES TO FINANCIAL STATEMENTS (concluded) GOLDEN OAK FAMILY OF FUNDS
January 31, 2000
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.
8. Common Trust Fund Conversion:
On April 30, 1999, the Citizens Bank -- Jackson Common Equity Fund was converted
into Tax-Managed Equity Portfolio.
The assets which consisted of securities and related receivables, were converted
on a tax-free basis. The number of shares issued for the fund and the net assets
(including unrealized appreciation) of the fund immediately before the
conversion was as follows:
NET UNREALIZED GOLDEN OAK
ASSETS APPRECIATION SHARES ISSUED
- ----------------------------------------------------
$45,237,878 $31,740,085 4,523,788
46
<PAGE>
NOTICE TO SHAREHOLDERS
OF
THE GOLDEN OAK FAMILY OF FUNDS
(UNAUDITED)
For the fiscal year ended January 31, 2000, 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, 2000 tax year end, this
notice is for informational use only.
<TABLE>
<CAPTION>
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 80% 20% 0% 100% 14%
Value Portfolio 30% 70% 0% 100% 37%
Tax Managed Equity Portfolio 94% 6% 0% 100% 100%
Small Cap Value Portfolio 0% 100% 0% 100% 22%
Intermediate-Term Income Portfolio 0% 100% 0% 100% 0%
Michigan Tax Free Bond Portfolio 0% 0% 100% 100% 0%
Prime Obligation Money Market Portfolio 0% 100% 0% 100% 0%
===============================================================================================================
Please consult your tax advisor for proper treatment of this information.
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.
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction.
</TABLE>
47
<PAGE>
NOTES
<PAGE>
NOTES
<PAGE>
[GRAPHIC OMITTED]
THE GOLDEN OAK FAMILY OF FUNDS
GROWTH PORTFOLIO
VALUE PORTFOLIO
TAX-MANAGED EQUITY PORTFOLIO
SMALL CAP VALUE PORTFOLIO
INTERMEDIATE-TERM INCOME PORTFOLIO
MICHIGAN TAX FREE BOND PORTFOLIO
PRIME OBLIGATION MONEY MARKET PORTFOLIO
INVESTMENT ADVISER
Citizens Bank
328 S. Saginaw Street
Flint, Michigan 48502
DISTRIBUTOR
SEI Investments Distribution Co.
One Freedom Valley Drive
Oaks, Pennsylvania 19456
TO OBTAIN MORE INFORMATION:
BY TELEPHONE: Call 1-800-545-6331
BY MAIL: Write to us
Golden Oak Family of Funds
c/o The Arbor Fund
P.O. Box 219947
Kansas City, Missouri 64121-9749
GOK-F-003-04
