--------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
--------------------------------------------------------------------------------
[LOGO OF GOLDEN OAK
FAMILY OF FUNDS OMITTED]
JULY 31, 2000
THE ARBOR FUND
Advised by
CITIZENS BANK
[GRAPHIC OMITTED]
<PAGE>
TABLE OF CONTENTS
Letter to Shareholders .......................................... 2
Statements of Net Assets ........................................ 4
Statement of Operations ......................................... 27
Statement of Changes in Net Assets .............................. 28
Financial Highlights ............................................ 30
Notes to Financial Statements ................................... 32
<PAGE>
August 2000
GOLDEN OAK
SEMI-ANNUAL REPORT TO SHAREHOLDERS
Dear Shareholder:
Just when it looked like the "New Economy" companies and their stocks had been
embraced as the only sensible investment vehicles, the value-style stocks of the
"Old Economy" began a solid comeback during March. Given the huge disparity in
performance between growth-style and value-style stocks during the previous 12
months or so, it shouldn't have come as a surprise that the gap had to narrow
sometime soon.
As many companies with modest stock prices in relation to their earnings get
re-discovered and recommended by analysts, the debate concerning the future
value of technology, media, and telecommunications (TMT) companies leaves many
investors wondering how to determine an investment strategy. It is our firm
opinion that the following guidelines, which are both simple and durable,
provide the appropriate antidote for investor anxiety and indecision.
DON'T TRY TO TIME THE SECURITIES MARKETS. Significant price changes often
occur without time to thoughtfully act beforehand. Remember that timing is a
two-edged sword: Every decision to sell requires a subsequent reinvestment --
two opportunities for sub-optimization! Timing involves high risk and low
odds.
DIVERSIFY YOUR PORTFOLIO. Securities and investment styles move in and out of
favor, often without warning. Diversifying market risk across the spectrum of
styles means you always participate in whatever is outperforming; conversely,
you avoid the possibility of over concentration in weak styles and the urge
to sell at or near the bottom. Who expected that the best performing Golden
Oak portfolio this year would be the Small Cap Value Fund?
ALIGN YOUR INVESTMENTS WITH YOUR PERSONAL GOALS AND OBJECTIVES. Computer
software enables you or your advisor to structure a portfolio which fits your
objectives and optimizes the risk-return tradeoff. Maintain the portfolio mix
unless your personal needs and objectives change. Reacting to market "noise"
is often costly.
2
<PAGE>
The value which all of us can derive from disciplining ourselves to follow these
guidelines -- beyond greater peace of mind -- is a higher probability of
reaching our financial goals in an uncertain world.
We are pleased to introduce the Golden Oak International Equity Fund, which was
first available for investment in July. BlackRock International, Ltd., which has
a strong record in international stock investing, serves as sub-advisor. This
new fund is our only investment vehicle focusing exclusively on the stocks of
companies headquartered in countries outside the U.S, and it has the
differentiating feature of a multi-capitalization portfolio structure. Golden
Oak International should be carefully considered for inclusion in all
well-diversified investment portfolios.
Once again, we thank you for choosing to invest with us.
Sincerely,
/S/ SIGNATURE
Dana A. Czmer
Chief Investment Officer
Citizens Bank
3
<PAGE>
STATEMENT OF NET ASSETS GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
GROWTH Value
PORTFOLIO Shares (000)
--------------------------------------------------------------------------------
COMMON STOCKS -- 98.9%
AEROSPACE/DEFENSE EQUIPMENT -- 1.2%
General Dynamics ...................................... 17,600 $ 993
-------------------------------------------------------------------------------
Total Aerospace/Defense Equipment ............. 993
-------------------------------------------------------------------------------
BROADCASTING, NEWSPAPERS & ADVERTISING -- 1.0%
Dow Jones ............................................. 6,200 409
TMP Worldwide* ........................................ 6,700 482
-------------------------------------------------------------------------------
Total Broadcasting, Newspapers
& Advertising .............................. 891
-------------------------------------------------------------------------------
BUILDING & CONSTRUCTION -- 1.1%
Dycom Industries* ..................................... 21,300 911
-------------------------------------------------------------------------------
Total Building & Construction ................. 911
-------------------------------------------------------------------------------
CHEMICALS -- 0.5%
Dow Chemical .......................................... 15,000 431
-------------------------------------------------------------------------------
Total Chemicals ............................... 431
-------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT -- 9.2%
ADC Telecommunications* ............................... 45,800 1,921
Comverse Technology* .................................. 7,800 684
Network Appliance* .................................... 23,100 1,991
Nortel Networks ....................................... 20,400 1,517
Powerwave Technologies* ............................... 49,000 1,700
-------------------------------------------------------------------------------
Total Communications Equipment ................ 7,813
-------------------------------------------------------------------------------
COMPUTERS & SERVICES -- 12.9%
Apple Computer* ....................................... 12,500 635
Cisco Systems* ........................................ 73,000 4,777
EMC-Mass* ............................................. 24,800 2,111
Sun Microsystems* ..................................... 33,000 3,479
-------------------------------------------------------------------------------
Total Computers & Services .................... 11,002
-------------------------------------------------------------------------------
COMPUTER SOFTWARE -- 11.7%
BEA Systems* .......................................... 25,100 1,081
Check Point
Software Technologies* .............................. 11,800 1,369
Oracle* ............................................... 56,000 4,211
Siebel Systems* ....................................... 9,200 1,334
Veritas Software* ..................................... 19,625 2,001
-------------------------------------------------------------------------------
Total Computer Software ....................... 9,996
-------------------------------------------------------------------------------
GROWTH Value
PORTFOLIO (continued) Shares (000)
-------------------------------------------------------------------------------
COSMETICS & TOILETRIES -- 1.0%
Colgate-Palmolive ..................................... 15,800 $ 880
-------------------------------------------------------------------------------
Total Cosmetics & Toiletries .................. 880
-------------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING -- 5.5%
General Electric ...................................... 91,600 4,712
-------------------------------------------------------------------------------
Total Diversified Manufacturing ............... 4,712
-------------------------------------------------------------------------------
DRUGS -- 7.0%
Eli Lilly ............................................. 9,400 976
Merck ................................................. 8,900 638
Pfizer ................................................ 101,350 4,371
-------------------------------------------------------------------------------
Total Drugs ................................... 5,985
-------------------------------------------------------------------------------
FINANCIAL SERVICES -- 3.2%
Citigroup ............................................. 38,050 2,685
-------------------------------------------------------------------------------
Total Financial Services ...................... 2,685
-------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 2.2%
Pepsico ............................................... 13,300 609
Quaker Oats ........................................... 19,300 1,298
-------------------------------------------------------------------------------
Total Food, Beverage & Tobacco ................ 1,907
-------------------------------------------------------------------------------
GAS/NATURAL GAS -- 1.3%
Dynegy, Cl A .......................................... 16,000 1,126
-------------------------------------------------------------------------------
Total Gas/Natural Gas ......................... 1,126
-------------------------------------------------------------------------------
GLASS PRODUCTS -- 1.0%
Corning ............................................... 3,800 889
-------------------------------------------------------------------------------
Total Glass Products .......................... 889
-------------------------------------------------------------------------------
INSURANCE -- 0.8%
Jefferson-Pilot ....................................... 11,400 695
-------------------------------------------------------------------------------
Total Insurance ............................... 695
-------------------------------------------------------------------------------
INTERNET SERVICES -- 4.2%
America Online* ....................................... 9,400 501
Lycos* ................................................ 32,600 1,976
Yahoo* ................................................ 8,300 1,068
-------------------------------------------------------------------------------
Total Internet Services ....................... 3,545
-------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
GROWTH Value
PORTFOLIO (continued) Shares (000)
--------------------------------------------------------------------------------
MACHINERY -- 0.7%
Applied Materials* ................................. 7,900 $ 599
-------------------------------------------------------------------------------
Total Machinery ............................ 599
-------------------------------------------------------------------------------
MEDICAL PRODUCTS & SERVICES -- 5.1%
Allergan ........................................... 26,800 1,794
Johnson & Johnson .................................. 27,200 2,531
-------------------------------------------------------------------------------
Total Medical Products & Services .......... 4,325
-------------------------------------------------------------------------------
MULTIMEDIA -- 3.6%
McGraw-Hill ........................................ 17,000 1,010
Walt Disney ........................................ 53,600 2,074
-------------------------------------------------------------------------------
Total Multimedia ........................... 3,084
-------------------------------------------------------------------------------
OFFICE SUPPLIES -- 0.8%
Avery Dennison ..................................... 13,000 705
-------------------------------------------------------------------------------
Total Office Supplies ...................... 705
-------------------------------------------------------------------------------
PETROLEUM & FUEL PRODUCTS -- 1.5%
Occidental Petroleum ............................... 22,400 454
Phillips Petroleum ................................. 15,500 788
-------------------------------------------------------------------------------
Total Petroleum & Fuel Products ............ 1,242
-------------------------------------------------------------------------------
RETAIL -- 6.0%
Best Buy* .......................................... 21,200 1,542
Tiffany ............................................ 22,600 774
Wal-Mart Stores .................................... 51,300 2,818
-------------------------------------------------------------------------------
Total Retail ............................... 5,134
-------------------------------------------------------------------------------
SEMI-CONDUCTORS/INSTRUMENTS -- 13.2%
Advanced Micro Devices* ............................ 22,600 1,626
Analog Devices* .................................... 33,400 2,234
Intel .............................................. 36,400 2,430
JDS Uniphase* ...................................... 29,700 3,508
PMC - Sierra* ...................................... 7,600 1,473
-------------------------------------------------------------------------------
Total Semi-Conductors/Instruments .......... 11,271
-------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS -- 2.0%
Bellsouth .......................................... 42,700 1,700
-------------------------------------------------------------------------------
Total Telephones & Telecommunications ...... 1,700
-------------------------------------------------------------------------------
TESTING LABORATORIES -- 1.7%
Amgen* ............................................. 11,500 747
Medimmune* ......................................... 11,400 678
-------------------------------------------------------------------------------
Total Testing Laboratories ................. 1,425
-------------------------------------------------------------------------------
Shares/
GROWTH Face Amount Value
PORTFOLIO (concluded) (000) (000)
-------------------------------------------------------------------------------
WHOLESALE -- 0.5%
Sysco .............................................. 9,800 $ 386
-------------------------------------------------------------------------------
Total Wholesale ............................ 386
-------------------------------------------------------------------------------
Total Common Stocks
(Cost $68,046) .......................... 84,332
-------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 1.1%
Morgan Stanley Dean Witter (A)
6.480%, dated 07/31/00, matures
08/01/00, repurchase price $942,751
(collateralized by U.S. Treasury Note,
total market value: $971,933) .................. $ 943 943
-------------------------------------------------------------------------------
Total Repurchase Agreement
(Cost $943) ............................. 943
-------------------------------------------------------------------------------
Total Investments -- 100.0%
(Cost $68,989) .......................... 85,275
-------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET -- 0.0% .......... (1)
-------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 3,806,106 outstanding shares of
beneficial interest ............................ 43,705
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 722,670 outstanding shares of
beneficial interest ............................ 11,630
Accumulated Net Investment Loss (132)
Accumulated Net Realized Gain
on Investments ................................. 13,785
Net Unrealized Appreciation on Investments 16,286
--------------------------------------------------------------------------------
Total Net Assets -- 100.0% ......................... $85,274
--------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Class I $18.90
Net Asset Value and Redemption Price
Per Share -- Class A ........................... $18.44
Maximum Offering Price Per Share -- Class A
($18.44 / 94.25%) ............................. $19.57
--------------------------------------------------------------------------------
* Non-income producing security
(A) Tri-Party Repurchase Agreement
Cl -- Class
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
VALUE Value
PORTFOLIO Shares (000)
--------------------------------------------------------------------------------
COMMON STOCKS -- 92.6%
AEROSPACE/DEFENSE EQUIPMENT -- 2.2%
United Technologies ................................... 32,000 $ 1,868
-------------------------------------------------------------------------------
Total Aerospace/Defense Equipment ............. 1,868
-------------------------------------------------------------------------------
AIR TRANSPORTATION -- 2.3%
Delta Air Lines ....................................... 22,000 1,181
Southwest Airlines .................................... 32,000 756
-------------------------------------------------------------------------------
Total Air Transportation ...................... 1,937
-------------------------------------------------------------------------------
BANKS -- 9.3%
Bank of America ....................................... 44,000 2,084
Bank of New York ...................................... 11,000 515
Chase Manhattan ....................................... 26,000 1,292
First Union ........................................... 44,000 1,136
Fleet Boston Financial ................................ 26,000 931
Mellon Financial ...................................... 20,640 778
Northern Trust ........................................ 14,000 1,048
-------------------------------------------------------------------------------
Total Banks ................................... 7,784
-------------------------------------------------------------------------------
BROADCASTING, NEWSPAPERS AND ADVERTISING -- 4.0%
Cablevision Systems, Cl A* ............................ 11,900 783
Knight Ridder ......................................... 37,500 1,955
Readers Digest, Cl A .................................. 16,000 605
-------------------------------------------------------------------------------
Total Broadcasting, Newspapers
and Advertising ............................ 3,343
-------------------------------------------------------------------------------
CHEMICALS -- 2.4%
E.I. Du Pont de Nemours ............................... 44,000 1,994
-------------------------------------------------------------------------------
Total Chemicals ............................... 1,994
-------------------------------------------------------------------------------
COMPUTERS & SERVICES -- 4.2%
Compaq Computer ....................................... 50,000 1,403
Electronic Data Systems ............................... 9,400 404
International Business Machines ....................... 15,000 1,687
-------------------------------------------------------------------------------
Total Computers & Services .................... 3,494
-------------------------------------------------------------------------------
COMPUTER SOFTWARE -- 3.5%
Microsoft* ............................................ 27,300 1,906
Sungard Data Systems* ................................. 30,000 992
-------------------------------------------------------------------------------
Total Computer Software ....................... 2,898
-------------------------------------------------------------------------------
VALUE Value
PORTFOLIO (continued) Shares (000)
-------------------------------------------------------------------------------
COSMETICS & TOILETRIES -- 2.7%
Avon Products ......................................... 17,500 $ 695
Kimberly-Clark ........................................ 27,000 1,551
-------------------------------------------------------------------------------
Total Cosmetics & Toiletries .................. 2,246
-------------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING -- 2.9%
General Electric ...................................... 15,900 818
Minnesota Mining & Manufacturing ...................... 18,000 1,621
-------------------------------------------------------------------------------
Total Diversified Manufacturing ............... 2,439
-------------------------------------------------------------------------------
DIVERSIFIED OPERATIONS -- 0.9%
Berkshire Hathaway, Cl B* ............................. 400 730
-------------------------------------------------------------------------------
Total Diversified Operations .................. 730
-------------------------------------------------------------------------------
DRUGS -- 1.5%
Pfizer ................................................ 28,700 1,238
-------------------------------------------------------------------------------
Total Drugs ................................... 1,238
-------------------------------------------------------------------------------
ELECTRICAL UTILITIES -- 4.8%
Ameren ................................................ 18,000 651
Duke Energy ........................................... 11,000 679
PG&E .................................................. 80,000 2,070
Southern .............................................. 26,000 635
-------------------------------------------------------------------------------
Total Electrical Utilities .................... 4,035
-------------------------------------------------------------------------------
FINANCIAL SERVICES -- 7.4%
Bear Stearns .......................................... 15,500 835
Citigroup ............................................. 19,000 1,341
Freddie Mac ........................................... 34,600 1,365
MBNA .................................................. 27,500 918
Morgan Stanley Dean Witter ............................ 19,000 1,734
-------------------------------------------------------------------------------
Total Financial Services ...................... 6,193
-------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.8%
General Mills ......................................... 19,000 653
-------------------------------------------------------------------------------
Total Food, Beverage & Tobacco ................ 653
-------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
VALUE Value
PORTFOLIO (continued) Shares (000)
--------------------------------------------------------------------------------
INSURANCE -- 11.5%
Aetna .............................................. 9,700 $ 538
Allstate ........................................... 63,000 1,736
American International Group ....................... 15,000 1,315
AXA Financial ...................................... 22,000 841
Cigna .............................................. 14,600 1,458
Marsh & McLennan ................................... 14,900 1,818
UnumProvident ...................................... 80,000 1,840
-------------------------------------------------------------------------------
Total Insurance ............................ 9,546
-------------------------------------------------------------------------------
MACHINERY -- 0.8%
Ingersoll-Rand ..................................... 16,000 628
-------------------------------------------------------------------------------
Total Machinery ............................ 628
-------------------------------------------------------------------------------
MISCELLANEOUS BUSINESS SERVICES -- 1.9%
Ceridian* .......................................... 44,000 1,001
First Data ......................................... 13,000 599
-------------------------------------------------------------------------------
Total Miscellaneous Business
Services ................................ 1,600
-------------------------------------------------------------------------------
PAPER & PAPER PRODUCTS -- 1.6%
International Paper ................................ 40,100 1,363
-------------------------------------------------------------------------------
Total Paper & Paper Products ............... 1,363
-------------------------------------------------------------------------------
PETROLEUM REFINING -- 9.7%
BP Amoco ADR ....................................... 21,320 1,115
Exxon Mobil ........................................ 32,882 2,631
Texaco ............................................. 42,000 2,076
Unocal ............................................. 74,000 2,238
-------------------------------------------------------------------------------
Total Petroleum Refining ................... 8,060
-------------------------------------------------------------------------------
RAILROADS -- 2.7%
Union Pacific ...................................... 53,000 2,289
-------------------------------------------------------------------------------
Total Railroads ............................ 2,289
-------------------------------------------------------------------------------
RETAIL -- 2.5%
Kroger* ............................................ 79,000 1,634
Safeway* ........................................... 10,500 473
-------------------------------------------------------------------------------
Total Retail ............................... 2,107
-------------------------------------------------------------------------------
Shares/
VALUE Face Amount Value
PORTFOLIO (continued) (000) (000)
-------------------------------------------------------------------------------
SEMI-CONDUCTORS/INSTRUMENTS -- 3.3%
Advanced Micro Devices* ............................ 10,000 $ 719
Intel .............................................. 30,000 2,002
-------------------------------------------------------------------------------
Total Semi-Conductors/Instruments .......... 2,721
-------------------------------------------------------------------------------
STEEL & STEEL WORKS -- 0.9%
Alcoa .............................................. 24,000 726
-------------------------------------------------------------------------------
Total Steel & Steel Works .................. 726
-------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS -- 8.8%
AT&T ............................................... 19,900 616
Bellsouth .......................................... 18,000 717
Motorola ........................................... 51,000 1,686
Qwest Communications
International* .................................. 17,293 812
SBC Communications ................................. 33,530 1,427
Telephone & Data Systems ........................... 7,000 780
Worldcom* .......................................... 34,100 1,332
-------------------------------------------------------------------------------
Total Telephones & Telecommunications ...... 7,370
-------------------------------------------------------------------------------
Total Common Stocks
(Cost $73,263) .......................... 77,262
-------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 5.4%
Morgan Stanley Dean Witter (A)
6.250%, dated 07/31/00, matures
08/01/00, repurchase price
$4,472,500 (collateralized by
U.S. Treasury Note, total market
value: $4,633,750) ............................. $ 4,472 4,472
-------------------------------------------------------------------------------
Total Repurchase Agreement
(Cost $4,472) ........................... 4,472
-------------------------------------------------------------------------------
Total Investments -- 98.0%
(Cost $77,735) .......................... 81,734
-------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET -- 2.0% .......... 1,650
-------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
VALUE Value
PORTFOLIO (concluded) (000)
--------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 7,764,358 outstanding shares of
beneficial interest ....................................... $61,582
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 945,511 outstanding shares of
beneficial interest ....................................... 9,216
Undistributed Net Investment Income ........................... 20
Accumulated Net Realized Gain
on Investments ............................................ 8,567
Net Unrealized Appreciation on Investments .................... 3,999
--------------------------------------------------------------------------------
Total Net Assets -- 100.0% .................................... $83,384
--------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Class I ................................ $ 9.58
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
ADR -- American Depository Receipt
Cl -- Class
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
STATEMENT OF NET ASSETS(continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
TAX-MANAGED EQUITY Value
PORTFOLIO Shares (000)
--------------------------------------------------------------------------------
COMMON STOCKS -- 98.6%
AEROSPACE/DEFENSE EQUIPMENT -- 4.6%
United Technologies ................................... 28,000 $ 1,634
-------------------------------------------------------------------------------
Total Aerospace/Defense
Equipment .................................. 1,634
-------------------------------------------------------------------------------
BANKS -- 2.1%
First Union ........................................... 29,400 759
-------------------------------------------------------------------------------
Total Banks ................................... 759
-------------------------------------------------------------------------------
CHEMICALS -- 0.6%
Air Products & Chemicals .............................. 6,688 223
-------------------------------------------------------------------------------
Total Chemicals ............................... 223
-------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT -- 1.3%
Comverse Technology* .................................. 5,200 456
-------------------------------------------------------------------------------
Total Communications Equipment ................ 456
-------------------------------------------------------------------------------
COMPUTERS & SERVICES -- 7.6%
Apple Computer* ....................................... 15,600 793
Cisco Systems* ........................................ 16,600 1,086
Sun Microsystems* ..................................... 8,000 843
-------------------------------------------------------------------------------
Total Computers & Services .................... 2,722
-------------------------------------------------------------------------------
COMPUTER SOFTWARE -- 11.5%
Microsoft* ............................................ 28,688 2,003
Siebel Systems* ....................................... 14,600 2,117
-------------------------------------------------------------------------------
Total Computer Software ....................... 4,120
-------------------------------------------------------------------------------
COSMETICS & TOILETRIES -- 4.6%
Kimberly-Clark ........................................ 28,600 1,643
-------------------------------------------------------------------------------
Total Cosmetics & Toiletries .................. 1,643
-------------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING -- 6.8%
General Electric ...................................... 47,400 2,438
-------------------------------------------------------------------------------
Total Diversified Manufacturing ............... 2,438
-------------------------------------------------------------------------------
DRUGS -- 6.6%
Abbott Laboratories ................................... 26,400 1,099
Pfizer ................................................ 29,475 1,271
-------------------------------------------------------------------------------
Total Drugs ................................... 2,370
-------------------------------------------------------------------------------
TAX-MANAGED EQUITY Value
PORTFOLIO (continued) Shares (000)
-------------------------------------------------------------------------------
FINANCIAL SERVICES -- 3.1%
Citigroup ............................................. 15,800 $ 1,115
-------------------------------------------------------------------------------
Total Financial Services ...................... 1,115
-------------------------------------------------------------------------------
INSURANCE -- 6.3%
Aflac ................................................. 29,200 1,517
Cincinnati Financial .................................. 19,097 721
-------------------------------------------------------------------------------
Total Insurance ............................... 2,238
-------------------------------------------------------------------------------
MACHINERY -- 1.0%
Caterpillar ........................................... 10,800 368
-------------------------------------------------------------------------------
Total Machinery ............................... 368
-------------------------------------------------------------------------------
MEDICAL PRODUCTS & SERVICES -- 7.0%
Medtronic ............................................. 48,750 2,489
-------------------------------------------------------------------------------
Total Medical Products & Services ............. 2,489
-------------------------------------------------------------------------------
MULTIMEDIA -- 9.2%
Gannett ............................................... 28,400 1,530
Walt Disney ........................................... 45,000 1,741
-------------------------------------------------------------------------------
Total Multimedia .............................. 3,271
-------------------------------------------------------------------------------
PETROLEUM REFINING -- 2.4%
BP Amoco ADR .......................................... 16,594 868
-------------------------------------------------------------------------------
Total Petroleum Refining ...................... 868
-------------------------------------------------------------------------------
RESTAURANTS -- 2.1%
McDonald's ............................................ 23,200 731
-------------------------------------------------------------------------------
Total Restaurants ............................. 731
-------------------------------------------------------------------------------
SEMI-CONDUCTORS/INSTRUMENTS -- 13.8%
Broadcom, Cl A* ....................................... 2,100 471
Intel ................................................. 33,200 2,216
JDS Uniphase* ......................................... 19,000 2,244
-------------------------------------------------------------------------------
Total Semi-Conductors/Instruments ............. 4,931
-------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS -- 8.0%
Verizon Communications* ............................... 22,082 1,038
Worldcom* ............................................. 46,273 1,808
-------------------------------------------------------------------------------
Total Telephones & Telecommunications ......... 2,846
-------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
TAX-MANAGED EQUITY Value
PORTFOLIO (concluded) Shares (000)
--------------------------------------------------------------------------------
Total Common Stocks
(Cost $13,397) ......................... $ 35,222
--------------------------------------------------------------------------------
CASH EQUIVALENT -- 1.5%
SEI Daily Income Trust Money Market
Fund .......................................... 552,989 553
--------------------------------------------------------------------------------
Total Cash Equivalent
(Cost $553) ............................ 553
--------------------------------------------------------------------------------
Total Investments -- 100.1%
(Cost $13,950) ......................... 35,775
--------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET -- (0.1%) ....... (43)
--------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 3,514,382 outstanding shares of
beneficial interest ........................... 3,144
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 43,478 outstanding shares of
beneficial interest ........................... 438
Accumulated Net Investment Loss ................... (31)
Accumulated Net Realized Gain
on Investments ................................ 10,356
Net Unrealized Appreciation on Investments ........ 21,825
--------------------------------------------------------------------------------
Total Net Assets -- 100.0% ........................ $ 35,732
--------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Class I .................... $ 10.04
Net Asset Value and Redemption Price
Per Share -- Class A .......................... $ 10.01
Maximum Offering Price Per Share --
Class A ($10.01 / 94.25%) ..................... $ 10.62
--------------------------------------------------------------------------------
* Non-income producing security
ADR -- American Depository Receipt
Cl -- Class
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
SMALL CAP VALUE Value
PORTFOLIO Shares (000)
--------------------------------------------------------------------------------
COMMON STOCKS -- 95.4%
AEROSPACE/DEFENSE EQUIPMENT -- 1.1%
Alliant Techsystems* ................................ 8,000 $ 566
-------------------------------------------------------------------------------
Total Aerospace/Defense Equipment ........... 566
-------------------------------------------------------------------------------
AIR TRANSPORTATION -- 1.6%
Offshore Logistics* ................................. 65,000 821
-------------------------------------------------------------------------------
Total Air Transportation .................... 821
-------------------------------------------------------------------------------
APPAREL/TEXTILES -- 4.1%
Columbia Sportswear* ................................ 35,000 1,282
First Years ......................................... 65,000 711
Tommy Hilfiger* ..................................... 11,600 109
-------------------------------------------------------------------------------
Total Apparel/Textiles ...................... 2,102
-------------------------------------------------------------------------------
AUTOMOTIVE -- 4.4%
Arnold Industries ................................... 65,000 890
Arvinmeritor* ....................................... 41,000 641
Polaris Industries .................................. 24,000 726
-------------------------------------------------------------------------------
Total Automotive ............................ 2,257
-------------------------------------------------------------------------------
BANKS -- 10.8%
Astoria Financial ................................... 35,000 1,019
Bank United, Cl A ................................... 39,000 1,421
Banknorth Group ..................................... 81,000 1,240
Washington Federal .................................. 53,000 994
Webster Financial ................................... 40,000 895
-------------------------------------------------------------------------------
Total Banks ................................. 5,569
-------------------------------------------------------------------------------
BUILDING & CONSTRUCTION -- 2.1%
Southdown ........................................... 17,000 1,058
-------------------------------------------------------------------------------
Total Building & Construction ............... 1,058
-------------------------------------------------------------------------------
CHEMICALS -- 2.0%
Ferro ............................................... 44,000 1,023
-------------------------------------------------------------------------------
Total Chemicals ............................. 1,023
-------------------------------------------------------------------------------
SMALL CAP VALUE Value
PORTFOLIO (continued) Shares (000)
-------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT -- 4.7%
Antec* .............................................. 5,000 $ 189
Applied Innovation* ................................. 57,000 727
Comsat .............................................. 23,000 647
Harris .............................................. 25,000 856
-------------------------------------------------------------------------------
Total Communications Equipment .............. 2,419
-------------------------------------------------------------------------------
COMPUTERS & SERVICES -- 2.0%
Diebold ............................................. 16,000 453
Rainbow Technologies* ............................... 13,700 594
-------------------------------------------------------------------------------
Total Computers & Services .................. 1,047
-------------------------------------------------------------------------------
COMPUTER SOFTWARE -- 1.3%
Progress Software* .................................. 10,000 151
Sybase* ............................................. 21,500 519
-------------------------------------------------------------------------------
Total Computer Software ..................... 670
-------------------------------------------------------------------------------
CONSUMER PRODUCTS -- 7.9%
American Greetings, Cl A ............................ 70,000 1,190
K-Swiss, Cl A ....................................... 80,000 1,360
Stride Rite ......................................... 60,000 356
Timberland, Cl A* ................................... 36,000 1,181
-------------------------------------------------------------------------------
Total Consumer Products ..................... 4,087
-------------------------------------------------------------------------------
ELECTRICAL UTILITIES/SERVICES -- 3.5%
Madison Gas & Electric .............................. 40,000 820
Utilicorp United .................................... 45,000 959
-------------------------------------------------------------------------------
Total Electrical Utilities/Services ......... 1,779
-------------------------------------------------------------------------------
FINANCIAL SERVICES -- 2.4%
Legg Mason .......................................... 24,000 1,248
-------------------------------------------------------------------------------
Total Financial Services .................... 1,248
-------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 3.8%
Canandaigua Brands, Cl A* ........................... 18,000 889
J & J Snack Foods* .................................. 45,000 669
McCormick ........................................... 13,000 381
-------------------------------------------------------------------------------
Total Food, Beverage & Tobacco .............. 1,939
-------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
SMALL CAP VALUE Value
PORTFOLIO (continued) Shares (000)
--------------------------------------------------------------------------------
HOUSEHOLD FURNITURE & FIXTURES -- 3.1%
American Woodmark .................................... 38,000 $ 731
Ethan Allen Interiors ................................ 35,000 892
--------------------------------------------------------------------------------
Total Household Furniture & Fixtures ......... 1,623
--------------------------------------------------------------------------------
INSURANCE -- 7.1%
Arthur J. Gallagher .................................. 25,000 1,227
Mony Group ........................................... 23,000 822
Oxford Health Plans* ................................. 22,000 527
Selective Insurance Group ............................ 45,000 830
Trigon Healthcare* ................................... 5,000 265
--------------------------------------------------------------------------------
Total Insurance .............................. 3,671
--------------------------------------------------------------------------------
MEASURING DEVICES -- 1.9%
Orbotech* ............................................ 12,000 989
--------------------------------------------------------------------------------
Total Measuring Devices ...................... 989
--------------------------------------------------------------------------------
MEDICAL PRODUCTS & SERVICES -- 4.7%
Datascope ............................................ 15,000 566
Dentsply International ............................... 40,000 1,352
Hooper Holmes ........................................ 15,400 189
Theragenics* ......................................... 40,000 297
--------------------------------------------------------------------------------
Total Medical Products & Services ............ 2,404
--------------------------------------------------------------------------------
OFFICE FURNITURE & FIXTURES -- 2.1%
HON Industries ....................................... 40,000 1,067
--------------------------------------------------------------------------------
Total Office Furniture & Fixtures ............ 1,067
--------------------------------------------------------------------------------
PAPER & PAPER PRODUCTS -- 1.3%
PH Glatfelter ........................................ 68,000 689
--------------------------------------------------------------------------------
Total Paper & Paper Products ................. 689
--------------------------------------------------------------------------------
PETROLEUM & OIL PRODUCTS -- 1.9%
Tidewater ............................................ 30,000 964
--------------------------------------------------------------------------------
Total Petroleum & Oil Products .............. 964
--------------------------------------------------------------------------------
PHARMACY SERVICES -- 1.9%
Syncor International* ................................ 13,500 979
--------------------------------------------------------------------------------
Total Pharmacy Services ...................... 979
--------------------------------------------------------------------------------
Shares/
SMALL CAP VALUE Face Amount Value
PORTFOLIO (continued) (000) (000)
--------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUST -- 3.6%
CBL & Associates Properties .......................... 40,000 $ 1,000
Franchise Finance of America ......................... 35,000 840
------------------------------------------------------------------------------
Total Real Estate Investment Trust ........... 1,840
------------------------------------------------------------------------------
RESTAURANTS -- 2.1%
Jack in the Box* ..................................... 50,000 1,072
------------------------------------------------------------------------------
Total Restaurants ............................ 1,072
------------------------------------------------------------------------------
RETAIL -- 6.4%
Abercrombie & Fitch, Cl A* ........................... 31,700 509
Anntaylor Stores* .................................... 64,000 1,808
Electronics Boutique Holdings* ....................... 32,000 584
Lands' End* .......................................... 10,000 374
------------------------------------------------------------------------------
Total Retail ................................. 3,275
------------------------------------------------------------------------------
SEMI-CONDUCTORS/INSTRUMENTS -- 7.6%
Electroglas* ......................................... 12,000 240
Cohu ................................................. 20,000 354
Innovex* ............................................. 107,000 1,284
LTX* ................................................. 20,000 440
Silicon Valley Group* ................................ 45,500 1,155
Three-Five Systems* .................................. 16,000 419
------------------------------------------------------------------------------
Total Semi-Conductors/Instruments ............ 3,892
------------------------------------------------------------------------------
Total Common Stocks
(Cost $46,377) ............................ 49,050
------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 4.4%
Morgan Stanley Dean Witter (A)
6.250%, dated 07/31/00, matures
08/01/00, repurchase price
$2,275,730 (collateralized by
U.S. Treasury Note, total market
value $2,357,778) ................................ $ 2,275 2,275
------------------------------------------------------------------------------
Total Repurchase Agreement
(Cost $2,275) ............................... 2,275
------------------------------------------------------------------------------
Total Investments -- 99.8%
(Cost $48,652) .............................. 51,325
------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET -- 0.2% .............. 100
------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements
12
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
SMALL CAP VALUE Value
PORTFOLIO (concluded) (000)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 4,221,378 outstanding shares of
beneficial interest ...................................... $ 41,099
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 419,004 outstanding shares of
beneficial interest ...................................... 4,193
Distributions in Excess of Net Investment
Income ................................................... (35)
Accumulated Net Realized Gain
on Investments ........................................... 3,495
Net Unrealized Appreciation on Investments ................... 2,673
-------------------------------------------------------------------------------
Total Net Assets -- 100.0% ................................... $ 51,425
-------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Class I ............................... $ 11.08
Net Asset Value and Redemption Price Per
Share -- Class A ......................................... $ 11.08
Maximum Offering Price Per Share -- Class A
($11.08 / 94.25%) ........................................ $ 11.76
-------------------------------------------------------------------------------
* Non-income producing security
(A) Tri-Party Repurchase Agreement
Cl -- Class
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
STATEMENT OF NET ASSETS(continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
INTERNATIONAL EQUITY Value
PORTFOLIO Shares (000)
--------------------------------------------------------------------------------
FOREIGN COMMON STOCKS -- 93.0%
CANADA -- 2.8%
BCE ........................................... 20,000 $ 456
-------------------------------------------------------------------------------
Total Canada .......................... 456
-------------------------------------------------------------------------------
CHINA -- 2.0%
China Southern Airlines* ...................... 1,000,000 337
-------------------------------------------------------------------------------
Total China ........................... 337
-------------------------------------------------------------------------------
FRANCE -- 3.6%
Valeo ......................................... 9,256 429
Wavecom* ...................................... 1,500 164
-------------------------------------------------------------------------------
Total France .......................... 593
-------------------------------------------------------------------------------
GERMANY -- 4.4%
ADVA Optical Networking* ...................... 1,800 203
Deutsche Bank ................................. 5,838 525
-------------------------------------------------------------------------------
Total Germany ......................... 728
-------------------------------------------------------------------------------
HONG KONG -- 2.8%
Bank of East Asia ............................. 200,000 454
-------------------------------------------------------------------------------
Total Hong Kong ....................... 454
-------------------------------------------------------------------------------
ICELAND -- 0.8%
Decode Genetics* .............................. 5,000 128
-------------------------------------------------------------------------------
Total Iceland ......................... 128
-------------------------------------------------------------------------------
ISRAEL -- 1.5%
RADVision ..................................... 6,500 247
-------------------------------------------------------------------------------
Total Israel .......................... 247
-------------------------------------------------------------------------------
ITALY -- 2.6%
TIM* .......................................... 46,123 436
-------------------------------------------------------------------------------
Total Italy ........................... 436
-------------------------------------------------------------------------------
JAPAN -- 21.3%
Fujikura ...................................... 25,000 150
JGC ........................................... 50,000 217
JSAT* ......................................... 30 192
Kawasaki Kisen Kaisha ......................... 142,000 253
Marubeni* ..................................... 80,000 216
Mitsubishi Cable Industries ................... 35,000 86
Mitsui Fudosan ................................ 26,000 253
INTERNATIONAL EQUITY Value
PORTFOLIO (continued) Shares (000)
-------------------------------------------------------------------------------
Onward Kashiyama .............................. 21,000 $ 236
Sankyo ........................................ 12,000 281
Sanwa Bank .................................... 35,000 281
Sekisui House ................................. 31,000 276
Showa Electric Wire & Cable ................... 50,000 110
Sumitomo Forestry ............................. 36,000 273
Taiheiyo Cement ............................... 126,000 214
Takashimaya ................................... 32,000 223
Toppan Printing ............................... 25,000 253
-------------------------------------------------------------------------------
Total Japan ........................... 3,514
-------------------------------------------------------------------------------
NETHERLANDS -- 12.5%
Ahold ......................................... 18,526 506
Fortis ........................................ 16,486 510
Getronics ..................................... 33,700 568
United Pan-Europe Communications* ............. 18,909 482
-------------------------------------------------------------------------------
Total Netherlands ..................... 2,066
-------------------------------------------------------------------------------
SPAIN -- 6.0%
PRISA* ........................................ 21,956 502
Repsol ........................................ 25,508 485
-------------------------------------------------------------------------------
Total Spain ........................... 987
-------------------------------------------------------------------------------
SWEDEN -- 5.9%
Atlas Copco ................................... 23,735 498
Ericsson ...................................... 24,119 471
-------------------------------------------------------------------------------
Total Sweden .......................... 969
-------------------------------------------------------------------------------
SWITZERLAND -- 11.7%
Adecco ........................................ 590 482
Disetronic Holding ............................ 250 222
Straumann Holding ............................. 150 245
Swisslog Holding .............................. 425 244
Tecan Group ................................... 225 233
Zurich Allied ................................. 948 511
-------------------------------------------------------------------------------
Total Switzerland ..................... 1,937
-------------------------------------------------------------------------------
UNITED KINGDOM -- 15.1%
Airspan Networks* ............................. 3,800 85
British Airways ............................... 87,078 491
British Telecom ............................... 37,000 489
Cambridge Antibody
Technology Group* ......................... 5,000 221
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
Shares/
INTERNATIONAL EQUITY Face Amount Value
PORTFOLIO (continued) (000) (000)
--------------------------------------------------------------------------------
Centrica .......................................... 147,496 $ 499
Dimension Data Holdings* .......................... 30,000 257
Scottish & Newcastle .............................. 62,524 446
-------------------------------------------------------------------------------
Total United Kingdom ...................... 2,488
-------------------------------------------------------------------------------
Total Foreign Common Stocks
(Cost $16,241) ......................... 15,340
-------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 7.3%
State Street
5.500%, dated 07/31/00, matures
08/01/00, repurchase price
$1,200,183 (collateralized by
U.S. Treasury Note, total market
value: $1,225,000) ............................ $ 1,200 1,200
-------------------------------------------------------------------------------
Total Repurchase Agreement
(Cost $1,200) .......................... 1,200
-------------------------------------------------------------------------------
Total Investments -- 100.3%
(Cost $17,441) ......................... 16,540
-------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET -- (0.3%) ....... (42)
-------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 1,718,817 outstanding shares of
beneficial interest ........................... 17,189
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 110 outstanding shares of
beneficial interest ........................... 1
Undistributed Net Investment Income ............... 25
Accumulated Net Realized Gain
on Investments ................................ 29
Accumulated Net Realized Gain
on Foreign Currency Transactions .............. 154
Net Unrealized Appreciation on Foreign
Currency and Translation of Other
Assets and Liabilities Denominated
in Foreign Currency ........................... 1
Net Unrealized Depreciation on Investments ........ (901)
-------------------------------------------------------------------------------
Total Net Assets -- 100.0% ........................ $ 16,498
-------------------------------------------------------------------------------
INTERNATIONAL EQUITY Value
PORTFOLIO (concluded)
--------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Class I .................... $9.60
Net Asset Value and Redemption Price
Per Share -- Class A .......................... $9.60
Maximum Offering Price Per Share -- Class A
($9.60 / 94.25%) ........................... $10.19
--------------------------------------------------------------------------------
* Non-income producing security
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
Face
INTERMEDIATE-TERM INCOME Amount Value
PORTFOLIO (000) (000)
--------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 29.7%
U.S. Treasury Bonds
7.500%, 11/15/16 ................................... $ 14,500 $ 16,507
6.250%, 08/15/23 ................................... 4,000 4,082
U.S. Treasury Notes
7.875%, 11/15/04 ................................... 3,600 3,816
7.750%, 02/15/01 ................................... 3,375 3,399
7.500%, 05/15/02 ................................... 2,700 2,751
6.625%, 05/15/07 ................................... 1,000 1,024
6.375%, 08/15/02 ................................... 7,500 7,500
6.250%, 04/30/01 ................................... 1,000 999
6.125%, 08/15/07 ................................... 2,500 2,491
4.750%, 11/15/08 ................................... 8,000 7,285
-------------------------------------------------------------------------------
Total U.S. Treasury Obligations
(Cost $50,648) .............................. 49,854
-------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 6.6%
Federal Home Loan Bank
5.740%, 02/25/05 ................................... 3,500 3,330
Federal National Mortgage Association
6.500%, 08/15/04 ................................... 5,000 4,915
Federal National Mortgage Association, MTN
6.580%, 05/14/08 ................................... 3,000 2,843
-------------------------------------------------------------------------------
Total U.S. Government Agency
Obligations (Cost $11,439) .................. 11,088
-------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS -- 14.2%
Federal Home Loan Mortgage
Corporation, REMIC
9.000%, 01/15/25 ................................... 2,339 2,408
6.900%, 04/15/26 ................................... 3,458 3,368
6.250%, 10/15/22 ................................... 4,000 3,816
6.250%, 10/15/23 ................................... 5,000 4,751
5.500%, 03/15/29 ................................... 160 126
Federal National Mortgage Association
7.040%, 08/01/15 ................................... 1,384 1,354
6.760%, 04/25/20 ................................... 48 48
6.460%, 12/01/28 ................................... 3,077 2,900
6.390%, 08/01/13 ................................... 5,331 5,056
-------------------------------------------------------------------------------
Total U.S. Government Mortgage-
Backed Obligations
(Cost $25,004) .............................. 23,827
-------------------------------------------------------------------------------
Face
INTERMEDIATE-TERM INCOME Amount Value
PORTFOLIO (continued) (000) (000)
-------------------------------------------------------------------------------
CORPORATE OBLIGATIONS -- 46.1%
AIRLINES -- 0.5%
US Airways, Cl A
6.760%, 04/15/08 ................................... $ 902 $ 807
-------------------------------------------------------------------------------
Total Airlines ................................. 807
-------------------------------------------------------------------------------
AUTOMOTIVE -- 4.8%
DaimlerChrysler Holdings
7.750%, 06/15/05 ................................... 1,000 1,009
Delphi Auto Systems
6.500%, 05/01/09 ................................... 3,000 2,704
TRW, Ser C, MTN
7.370%, 04/18/07 ................................... 4,500 4,286
-------------------------------------------------------------------------------
Total Automotive ............................... 7,999
-------------------------------------------------------------------------------
BANKS -- 5.7%
Bank of America, Global Bond
7.875%, 05/16/05 ................................... 2,000 2,030
Inter-American Development Bank, MTN
6.000%, 05/13/09 ................................... 3,000 2,815
National Australia Bank, Ser A, Yankee Bond
8.600%, 05/19/10 ................................... 2,000 2,100
National City Bank
5.750%, 02/01/09 ................................... 3,000 2,591
-------------------------------------------------------------------------------
Total Banks .................................... 9,536
-------------------------------------------------------------------------------
BROKER/DEALERS -- 3.4%
Charles Schwab
8.050%, 03/01/10 ................................... 2,000 2,000
Merrill Lynch
6.000%, 02/17/09 ................................... 2,000 1,785
Paine Webber Group
7.625%, 12/01/09 ................................... 2,000 1,975
-------------------------------------------------------------------------------
Total Broker/Dealers ........................... 5,760
-------------------------------------------------------------------------------
FINANCIAL SERVICES -- 13.1%
Associates Corporation of North America
8.550%, 07/15/09 ................................... 2,000 2,050
Boeing Capital, MTN
7.250%, 02/01/11 ................................... 1,000 969
General Electric Capital, Ser A, MTN,
Global Bond
7.000%, 03/01/02 ................................... 5,000 4,975
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
Face
INTERMEDIATE-TERM INCOME Amount Value
PORTFOLIO (continued) (000) (000)
--------------------------------------------------------------------------------
General Motors Acceptance
7.750%, 01/19/10 ............................. $ 4,000 $ 3,990
Household Finance, Global Bond
7.875%, 03/01/07 ............................. 2,000 1,993
Morgan Stanley Dean Witter (A)
6.973%, 12/17/01 ............................. 3,000 3,004
Morgan Stanley Dean Witter, Ser C, MTN
7.375%, 04/15/03 ............................. 2,000 2,002
Textron Financial (A)
7.148%, 12/09/02 ............................. 3,000 3,001
-------------------------------------------------------------------------------
Total Financial Services ................. 21,984
-------------------------------------------------------------------------------
INDUSTRIAL -- 9.5%
Case
7.250%, 08/01/05 ............................. 2,000 1,915
Comdisco, Ser G, MTN
6.340%, 01/11/02 ............................. 1,500 1,443
Cooper Industries, Ser 3, MTN
6.375%, 05/08/08 ............................. 2,000 1,855
Hertz
7.000%, 05/01/02 ............................. 2,800 2,790
Hubbell
6.625%, 10/01/05 ............................. 1,000 985
Philip Morris, Global Bond
7.000%, 07/15/05 ............................. 1,500 1,412
RR Donnelley & Sons, Ser C, MTN
6.700%, 07/05/05 ............................. 1,000 979
Supervalu, Ser B, MTN
6.640%, 06/09/06 ............................. 3,000 2,801
Unocal Oil of California
6.500%, 05/01/08 ............................. 2,000 1,845
-------------------------------------------------------------------------------
Total Industrial ......................... 16,025
-------------------------------------------------------------------------------
INSURANCE -- 0.9%
Conseco
8.500%, 10/15/02 ............................. 2,000 1,460
-------------------------------------------------------------------------------
Total Insurance .......................... 1,460
-------------------------------------------------------------------------------
RAILROADS -- 1.7%
CSX, Ser 1998-A
6.400%, 06/15/09 ............................. 2,000 1,845
Union Pacific
6.125%, 01/15/04 ............................. 1,000 956
-------------------------------------------------------------------------------
Total Railroads .......................... 2,801
-------------------------------------------------------------------------------
Face
INTERMEDIATE-TERM INCOME Amount Value
PORTFOLIO (continued) (000) (000)
-------------------------------------------------------------------------------
RETAIL -- 2.5%
Albertson's
8.350%, 05/01/10 ............................. $ 4,000 $ 4,170
-------------------------------------------------------------------------------
Total Retail ............................. 4,170
-------------------------------------------------------------------------------
SPECIAL PURPOSE -- 2.4%
BHP Finance
8.500%, 12/01/12 ............................. 3,917 4,054
-------------------------------------------------------------------------------
Total Special Purpose .................... 4,054
-------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS -- 1.6%
QWest Capital Funding
6.375%, 07/15/08 ............................. 3,000 2,726
-------------------------------------------------------------------------------
Total Telephones &
Telecommunications ..................... 2,726
-------------------------------------------------------------------------------
Total Corporate Obligations
(Cost $80,864) ........................ 77,322
-------------------------------------------------------------------------------
ASSET-BACKED SECURITY -- 0.3%
Countrywide Home Loan Trust,
Ser 1999-3, Cl A5
6.500%, 04/25/29 ............................. 607 491
-------------------------------------------------------------------------------
Total Asset-Backed Security
(Cost $601) ........................... 491
-------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 2.0%
Morgan Stanley Dean Witter (B)
6.480%, dated 07/31/00, matures
08/01/00, repurchase price
$3,271,616 (collateralized
by U.S. Treasury Note, total
market value: $3,352,818) .................... 3,271 3,271
-------------------------------------------------------------------------------
Total Repurchase Agreement
(Cost $3,271) ......................... 3,271
-------------------------------------------------------------------------------
Total Investments -- 98.9%
(Cost $171,827) ....................... 165,853
-------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET -- 1.1% ........ 1,893
-------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
INTERMEDIATE-TERM INCOME Value
PORTFOLIO(concluded) (000)
--------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 17,021,661 outstanding shares
of beneficial interest .................................. $ 169,140
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 658,971 outstanding shares of
beneficial interest ..................................... 6,581
Accumulated Net Realized
Loss on Investments ..................................... (2,001)
Net Unrealized Depreciation on Investments .................. (5,974)
-------------------------------------------------------------------------------
Total Net Assets -- 100.0% .................................. $ 167,746
-------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Class I .............................. $ 9.49
Net Asset Value and Redemption Price
Per Share -- Class A .................................... $ 9.48
Maximum Offering Price Per Share --
Class A ($9.48 / 95.5%) ................................. $ 9.93
-------------------------------------------------------------------------------
(A) Variable rate security. The rate shown on the statement of Net Assets is the
rate as of July 31, 2000.
(B) Tri-Party Repurchase Agreement
Cl -- Class
MTN -- Medium Term Note
REMIC -- Real Estate Mortgage Investment Conduit
Ser -- Series
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO (000) (000)
--------------------------------------------------------------------------------
MUNICIPAL BONDS -- 98.2%
MICHIGAN -- 98.2%
Alpena County GO, Hospital Improvement
Project, AMBAC
5.450%, 06/01/01 ................................. $ 250 $ 252
Anchor Bay, School District GO, MBIA
6.000%, 05/01/03 ................................. 870 900
Anchor Bay, School District GO, Ser II, FGIC
6.125%, 05/01/11 ................................. 365 397
Ann Arbor, Water Supply System RB,
Ser T, MBIA
7.375%, 02/01/02 ................................. 750 780
Avondale, School District GO
6.600%, 05/01/05 ................................. 200 205
6.700%, 05/01/06 ................................. 200 205
Big Rapids, Public School District GO, FGIC
7.300%, 05/01/05 ................................. 250 277
Bishop International Airport Authority RB,
Ser B, ACA Insured
5.125%, 12/01/17 ................................. 1,500 1,386
Calhoun County GO, AMBAC
4.950%, 07/01/03 ................................. 1,000 1,009
Central Michigan State University RB,
Pre-refunded @ 101, FGIC (A)
5.200%, 04/01/07 ................................. 860 888
Cheboygan, School District GO, MBIA
6.000%, 05/01/02 ................................. 260 266
Clarkston, Community Schools GO,
Pre-refunded @ 101, FGIC (A)
5.800%, 05/01/05 ................................. 1,000 1,059
De Witt, Public Schools GO, AMBAC
6.000%, 05/01/03 ................................. 935 968
Dearborn, Municipal Building Authority
GO, AMBAC
7.000%, 06/01/01 ................................. 300 306
7.000%, 06/01/02 ................................. 475 495
7.000%, 06/01/03 ................................. 505 536
Detroit, Distributable State Aid GO, AMBAC
5.000%, 05/01/05 ................................. 200 202
5.250%, 05/01/08 ................................. 1,000 1,021
Detroit, Water Supply System RB, FGIC
6.250%, 07/01/07 ................................. 500 523
Detroit, Water Supply System RB, Second
Lien, Ser A, MBIA
5.100%, 07/01/07 ................................. 500 507
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO (continued) (000) (000)
-------------------------------------------------------------------------------
Detroit, Water Supply System RB, Senior
Lien, Ser A, FGIC
5.750%, 07/01/19 ................................. $ 1,000 $ 1,005
East Lansing GO, Ser B
4.850%, 10/01/07 ................................. 315 314
Farmington, Public School District GO
4.000%, 05/01/09 ................................. 1,100 1,002
Ferris State University RB,
Pre-refunded @ 101, AMBAC (A)
5.400%, 04/01/07 ................................. 675 706
Flat Rock, Community School District GO, MBIA
7.750%, 05/01/04 ................................. 675 744
Flint GO, MBIA
6.000%, 11/01/03 ................................. 1,040 1,083
Grand Rapids, Building Authority RB
5.375%, 04/01/07 ................................. 200 205
Grand Rapids, Downtown Development
Authority TA, MBIA
6.600%, 06/01/08 ................................. 200 215
Grand Rapids, Water Supply RB, FGIC
6.400%, 01/01/05 ................................. 1,000 1,027
Haslett, Public School District GO, MBIA
6.000%, 05/01/03 ................................. 310 321
Howell, Public Schools GO, FGIC
5.000%, 05/01/08 ................................. 1,000 1,006
Ingham County GO, Proctor Drain
District Project
7.100%, 02/01/01 ................................. 180 182
Iron Mountain, Tax Increment Finance
Authority GO, AMBAC
5.000%, 05/01/05 ................................. 250 253
Jenison, Public Schools GO, FGIC
5.250%, 05/01/11 ................................. 1,575 1,603
Johannesburg-Lewiston, Area Schools
GO, AMBAC
6.750%, 05/01/02 ................................. 280 290
6.750%, 05/01/03 ................................. 320 337
6.000%, 05/01/04 ................................. 365 381
Kalamazoo, Hospital Finance Authority,
Borgess Medical Center RB,
Series A, ETM, AMBAC
5.000%, 06/01/04 ................................. 1,000 1,015
Kalamazoo, Water Supply System Project RB
6.000%, 09/01/07 ................................. 425 440
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
STATEMENT OF NET ASSETS(continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO (continued) (000) (000)
--------------------------------------------------------------------------------
Kent County, Building Authority GO
5.000%, 12/01/06 ................................. $ 500 $ 508
5.100%, 12/01/07 ................................. 500 509
Kent, Hospital Finance Authority RB,
Mary Free Bed Hospital Project, Ser A
6.250%, 04/01/03 ................................. 250 252
Kentwood, Public School System GO
5.900%, 05/01/04 ................................. 380 395
Kentwood, Public School System GO,
Pre-refunded @ 102 (A)
5.900%, 05/01/02 ................................. 370 386
Lake Orion, Community School
District GO, Ser A, FSA
5.750%, 05/01/15 ................................. 1,000 1,044
Lansing, Building Authority GO, ETM
7.100%, 06/01/02 ................................. 100 103
Lansing, Tax Increment Finance Authority
GO, ETM
6.100%, 10/01/03 ................................. 250 261
Lincoln, School District GO, FGIC
5.750%, 05/01/09 ................................. 115 120
Lincoln, School District GO,
Pre-refunded @ 102, FGIC (A)
5.750%, 05/01/04 ................................. 785 830
Livonia, Municipal Building Authority RB
5.750%, 06/01/04 ................................. 250 259
Livonia, Water Supply & Wastewater
Systems RB, AMBAC
5.200%, 11/01/09 ................................. 1,000 1,006
Montague, Public School District GO, FSA
5.125%, 05/01/06 ................................. 300 305
5.125%, 05/01/08 ................................. 300 304
Northville, Public Schools GO, FGIC
5.000%, 05/01/10 ................................. 500 501
Oak Park GO, AMBAC
5.200%, 05/01/06 ................................. 250 254
Oakland County, Birmingham Drain District
GO, Ser C
7.500%, 10/01/01 ................................. 325 336
Oakland County, Economic Development
Authority RB, Cranbrook Elderly
Community Project, Ser B,
Pre-refunded @ 100 (A)
6.375%, 11/01/04 ................................. 1,000 1,068
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO (continued) (000) (000)
-------------------------------------------------------------------------------
Pewamo, Westphalia School District GO, FGIC
5.000%, 05/01/06 ................................. $ 275 $ 278
Plymouth-Canton County, Community
School District GO, FGIC
4.500%, 05/01/12 ................................. 1,100 1,027
Plymouth-Canton County, Community
School District GO, Ser B,
Pre-refunded @ 101 (A)
6.250%, 05/01/01 ................................. 1,400 1,433
6.350%, 05/01/01 ................................. 300 307
Plymouth-Canton County, Community
School District GO, Ser C
5.900%, 05/01/02 ................................. 250 256
Plymouth-Canton County, Community
School District GO, Ser C,
Pre-refunded @ 102 (A)
6.200%, 05/01/02 ................................. 250 262
Portage, Public Schools GO, FSA
4.350%, 05/01/11 ................................. 500 464
4.450%,05/01/12 .................................. 500 465
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 ................................. 250 256
5.500%, 11/01/07 ................................. 250 256
Rochester, Community School District GO, MBIA
5.500%, 05/01/06 ................................. 1,000 1,036
Roseville, School District GO, FSA
4.450%, 05/01/06 ................................. 1,500 1,464
Saginaw, Hospital Finance Authority,
Covenant Medical Center RB, Ser F
6.500%, 07/01/30 ................................. 5,000 4,994
Saline, Building Authority GO, AMBAC
7.000%, 07/01/05 ................................. 100 104
South Lyon, Community School District GO
6.500%, 05/01/05 ................................. 350 362
State Building Authority RB, Facilities
Project, Ser I
4.750%, 10/15/18 ................................. 1,100 983
State Building Authority RB, Facilities
Project, Ser I, AMBAC
5.500%, 10/01/07 ................................. 1,000 1,040
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO (continued) (000) (000)
--------------------------------------------------------------------------------
State Building Authority RB, Ser II
Pre-refunded @ 102, AMBAC (A)
6.750%, 10/01/01 ................................. $ 245 $ 256
State Building Authority RB, Ser I
6.400%, 10/01/04 ................................. 650 676
6.500%, 10/01/05 ................................. 500 521
State Building Authority RB, Ser I, AMBAC
6.000%, 10/01/02 ................................. 300 309
State Building Authority RB, Ser II
6.500%, 10/01/05 ................................. 120 125
State Building Authority RB, Ser II, FSA
6.200%, 10/01/02 ................................. 250 259
State Building Authority RB, Ser II,
Pre-refunded @ 102, AMBAC (A)
6.250%, 10/01/01 ................................. 300 312
State Higher Education Facilities Authority
RB, Thomas M. Cooley Project (B)
4.500%, 05/01/04 ................................. 750 731
State Hospital Finance Authority RB,
Botsford Project, Ser A, MBIA
4.400%, 02/15/04 ................................. 1,000 981
State Hospital Finance Authority RB,
Chelsea Community Hospital Project
5.000%, 05/15/12 ................................. 1,000 856
State Hospital Finance Authority RB,
Detroit Medical Center Project
6.250%, 08/15/13 ................................. 675 591
State Hospital Finance Authority RB,
Detroit Medical Center Project, Ser A
7.100%, 08/15/01 ................................. 165 165
State Hospital Finance Authority RB, Detroit
Medical Group Project, Ser A, AMBAC
5.000%, 08/15/05 ................................. 2,180 2,188
State Hospital Finance Authority RB, Henry
Ford Health Center Project, Ser A
5.100%, 11/15/07 ................................. 600 587
State Hospital Finance Authority RB,
McLaren Group Project, Ser A
5.000%, 10/15/04 ................................. 1,000 991
5.200%, 10/15/06 ................................. 750 743
State Hospital Finance Authority RB,
MidMichigan Group Project, Ser A, FSA
5.500%, 06/01/08 ................................. 1,400 1,439
State Hospital Finance Authority RB,
Sisters of Mercy Project, Ser M, FSA
5.700%, 02/15/01 ................................. 250 252
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO (continued) (000) (000)
-------------------------------------------------------------------------------
State Hospital Finance Authority RB,
Sisters of Mercy Project, Ser P, MBIA
4.900%, 08/15/05 ................................. $ 1,000 $ 1,000
State Hospital Finance Authority RB,
Sparrow Group Project, MBIA
5.200%, 11/15/07 ................................. 480 487
5.300%, 11/15/08 ................................. 450 457
5.400%, 11/15/09 ................................. 450 460
State Hospital Finance Authority RB,
St. John Hospital & Medical Center
Project, ETM, AMBAC
5.000%, 05/15/04 ................................. 750 761
State Hospital Finance Authority RB,
St. John Hospital & Medical Center
Project, Ser A, ETM, AMBAC
5.650%, 05/15/03 ................................. 300 309
State Housing Development Authority
RB, Greenwood Villa Project, FSA
6.500%, 09/15/07 ................................. 160 168
State Municipal Bond Authority RB
5.500%, 10/01/06 ................................. 810 842
5.150%, 10/01/08 ................................. 1,000 1,014
State Municipal Bond Authority RB, Ser A
6.000%, 10/01/02 ................................. 1,000 1,031
6.500%, 05/01/07 ................................. 250 264
State Public Power Agency RB, Belle
River Project, Ser A
5.400%, 01/01/01 ................................. 250 251
5.200%, 01/01/04 ................................. 300 305
State Public Power Agency RB, Campbell
Project, Ser A, AMBAC
5.000%, 01/01/03 ................................. 500 504
5.500%, 01/01/06 ................................. 500 516
State South Central Power Agency RB, MBIA
5.800%, 11/01/05 ................................. 400 419
State Strategic Fund RB, Ford Motor
Project, Ser A
7.100%, 02/01/06 ................................. 350 384
State Strategic Fund RB, NSF International
Project, Ser A (B)
5.400%, 08/01/10 ................................. 1,105 1,084
5.500%, 08/01/11 ................................. 1,065 1,046
State Trunk Line RB, Ser A
5.625%, 10/01/03 ................................. 500 515
State Trunk Line RB, Ser B-2
5.750%, 10/01/04 ................................. 350 364
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
Face
MICHIGAN TAX FREE BOND Amount Value
PORTFOLIO (continued) (000) (000)
--------------------------------------------------------------------------------
State University RB, Ser A,
Pre-refunded @ 101 (A)
6.125%, 08/15/02 ................................ $ 1,250 $ 1,302
Traverse City, Area Public Schools GO,
Ser I, MBIA
7.250%, 05/01/05 ................................ 950 1,049
Trenton, Building Authority GO, AMBAC
5.625%, 10/01/21 ................................ 1,250 1,245
Troy, City School District GO
4.750%, 05/01/08 ................................ 1,000 991
University of Michigan, Hospital RB, Ser A
5.800%, 12/01/05 ................................ 400 412
University of Michigan, Hospital RB, Ser A-1
5.250%, 12/01/09 ................................ 1,000 991
University of Michigan, Major Capital
Projects RB, Ser B
5.300%, 04/01/05 ................................ 250 257
Utica, Community Schools GO
5.375%, 05/01/02 ................................ 200 203
5.750%, 05/01/07 ................................ 500 521
Washtenaw County, Community College
GO, Ser A
4.350%, 04/01/05 ................................ 1,375 1,348
4.900%, 04/01/06 ................................ 1,200 1,206
Waterford Township, School District GO
4.850%, 06/01/10 ................................ 1,450 1,428
Wayne County, Building Authority GO,
Capital Improvement Project, Ser A, MBIA
5.625%, 06/01/04 ................................ 1,000 1,033
West Bloomfield, School District GO, FGIC
5.700%, 05/01/14 ................................ 900 933
Wixon County GO, AMBAC
4.750%, 05/01/11 ................................ 1,000 976
Wyandotte, Building Authority RB, ETM
7.000%, 01/01/03 ................................ 100 101
Wyandotte, Electric Authority RB,
Pre-refunded @ 100, MBIA (A)
6.250%, 10/01/08 ................................ 1,700 1,825
Wyandotte, Finance Authority TA, MBIA
6.100%, 06/01/02 ................................ 500 514
-------------------------------------------------------------------------------
Total Michigan .............................. 88,709
-------------------------------------------------------------------------------
Total Municipal Bonds
(Cost $88,275) ........................... 88,709
-------------------------------------------------------------------------------
MICHIGAN TAX FREE BOND Value
PORTFOLIO (concluded) Shares (000)
-------------------------------------------------------------------------------
CASH EQUIVALENT -- 0.7%
SEI Institutional Tax-Free Fund ..................... 615,831 $ 616
-------------------------------------------------------------------------------
Total Cash Equivalent
(Cost $616) .............................. 616
-------------------------------------------------------------------------------
Total Investments -- 98.9%
(Cost $88,891) ........................... 89,325
-------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET -- 1.1% ........... 961
-------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 9,113,531 outstanding shares of
beneficial interest ............................. 89,433
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 29,014 outstanding shares of
beneficial interest ............................. 300
Undistributed Net Investment Income ................. 5
Accumulated Net Realized Gain on Investments ........ 114
Net Unrealized Appreciation on Investments .......... 434
-------------------------------------------------------------------------------
Total Net Assets -- 100.0% .......................... $ 90,286
-------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Class I ...................... $ 9.88
Net Asset Value and Redemption Price
Per Share -- Class A ............................ $ 9.88
Maximum Offering Price Per Share --
Class A ($9.88 / 95.5%) ......................... $ 10.35
-------------------------------------------------------------------------------
(A) Pre-refunded Security. The pre-refunded date is shown as the maturity date
on the Statement of Net Assets.
(B) Securities are held in connection with a letter of credit issued by a major
bank or other financial institution.
ETM -- Escrowed to Maturity
GO -- General Obligation
RB -- Revenue Bond
TA -- Tax Allocation
The following organizations have provided underlying credit support for
securities listed above, as indicated.
ACA -- American Capital Access
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Financial Guaranty Insurance Corporation
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Insurance Association
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
Face
PRIME OBLIGATION MONEY Amount Value
MARKET PORTFOLIO (000) (000)
--------------------------------------------------------------------------------
COMMERCIAL PAPER -- 53.2%
BROKER/DEALERS -- 4.1%
Bear Stearns
6.675%, 09/05/00 ................................. $ 3,000 $ 2,981
Goldman Sachs Group
6.787%, 08/09/00 ................................. 3,000 2,996
-------------------------------------------------------------------------------
Total Broker/Dealers ......................... 5,977
-------------------------------------------------------------------------------
DRUGS -- 2.4%
Pfizer
6.711%, 08/09/00 ................................. 3,490 3,485
-------------------------------------------------------------------------------
Total Drugs .................................. 3,485
-------------------------------------------------------------------------------
FINANCIAL SERVICES -- 8.1%
Bell Atlantic Financial
6.550%, 09/20/00 ................................. 4,000 3,964
General Motors Acceptance
6.727%, 08/14/00 ................................. 3,800 3,791
Prudential Funding
6.673%, 09/18/00 ................................. 4,000 3,965
-------------------------------------------------------------------------------
Total Financial Services ..................... 11,720
-------------------------------------------------------------------------------
FINANCIAL SERVICES/SPECIAL PURPOSE ENTITY -- 20.6%
Aesop Funding
6.813%, 08/16/00 ................................. 3,000 2,992
Corporate Asset Funding
6.671%, 09/08/00 ................................. 4,000 3,972
Enterprise Funding
6.723%, 08/04/00 ................................. 4,000 3,998
Falcon Asset Securitization
6.636%, 08/24/00 ................................. 3,540 3,525
Island Finance Puerto Rico
6.580%, 08/07/00 ................................. 3,500 3,496
Kitty Hawk Funding
6.655%, 09/01/00 ................................. 3,500 3,480
Park Avenue Receivables
6.641%, 08/24/00 ................................. 3,295 3,281
Preferred Receivables Funding
6.798%, 09/13/00 ................................. 3,000 2,976
Variable Funding Capital
6.718%, 08/07/00 ................................. 2,000 1,998
-------------------------------------------------------------------------------
Total Financial Services/Special
Purpose Entity ............................ 29,718
-------------------------------------------------------------------------------
Face
PRIME OBLIGATION MONEY Amount Value
MARKET PORTFOLIO (continued) (000) (000)
-------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 7.2%
Coca-Cola Enterprise
6.530%, 08/30/00 ................................. $ 4,303 $ 4,280
Fortune Brands
6.632%, 08/23/00 ................................. 3,137 3,125
Kellogg
6.701%, 08/04/00 ................................. 3,000 2,998
-------------------------------------------------------------------------------
Total Food, Beverage & Tobacco ............... 10,403
-------------------------------------------------------------------------------
PRINTING & PUBLISHING -- 2.8%
New York Times
6.712%, 08/02/00 ................................. 2,300 2,300
6.779%, 08/09/00 ................................. 1,800 1,797
-------------------------------------------------------------------------------
Total Printing & Publishing .................. 4,097
-------------------------------------------------------------------------------
RETAIL -- 2.8%
Wal-Mart Stores
6.620%, 08/29/00 ................................. 4,000 3,980
-------------------------------------------------------------------------------
Total Retail ................................. 3,980
-------------------------------------------------------------------------------
SCHOOLS -- 2.5%
Columbia University
6.728%, 08/11/00 ................................. 3,550 3,544
-------------------------------------------------------------------------------
Total Schools ................................ 3,544
-------------------------------------------------------------------------------
WHOLESALE -- 2.7%
Sysco
6.789%, 09/22/00 ................................. 4,000 3,962
-------------------------------------------------------------------------------
Total Wholesale .............................. 3,962
-------------------------------------------------------------------------------
Total Commercial Paper
(Cost $76,886) ............................ 76,886
-------------------------------------------------------------------------------
YANKEE COMMERCIAL PAPER -- 9.4%
Apreco
6.776%, 08/15/00 ................................. 4,000 3,990
Eureka Securities
6.626%, 08/01/00 ................................. 3,000 3,000
Halifax PLC
6.784%, 09/06/00 ................................. 3,600 3,576
KFW International Finance
6.609%, 08/15/00 ................................. 3,000 2,992
-------------------------------------------------------------------------------
Total Yankee Commercial Paper
(Cost $13,558) ............................ 13,558
-------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
STATEMENT OF NET ASSETS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
Face
PRIME OBLIGATION MONEY Amount Value
MARKET PORTFOLIO (continued) (000) (000)
--------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT -- 9.0%
American Express Centurion Bank
6.530%, 08/30/00 .............................. $ 3,000 $ 3,000
Bank of America NA
6.570%, 09/15/00 .............................. 2,000 2,000
Harris Bankcorp
6.560%, 09/06/00 .............................. 4,000 4,000
First Tennessee Bank
6.530%, 08/28/00 .............................. 4,000 4,000
-------------------------------------------------------------------------------
Total Certificates of Deposit
(Cost $13,000) ......................... 13,000
-------------------------------------------------------------------------------
YANKEE CERTIFICATES OF DEPOSIT -- 4.2%
Barclays Bank NY
6.710%, 02/09/01 .............................. 1,500 1,500
Deutsche Bank AG
6.550%, 01/22/01 .............................. 2,500 2,499
Svenska Handels NY
6.800%, 03/16/01 .............................. 2,000 1,999
-------------------------------------------------------------------------------
Total Yankee Certificates of Deposit
(Cost $5,998) .......................... 5,998
-------------------------------------------------------------------------------
CORPORATE BONDS -- 10.0%
Federal National Mortgage Association, MTN
6.520%, 03/16/01 .............................. 3,000 2,999
Ford Motor Credit (A)
6.729%, 08/18/00 .............................. 4,000 4,000
General Motors Acceptance, MTN
6.375%, 09/19/00 .............................. 1,000 1,000
JP Morgan
6.800%, 02/23/01 .............................. 1,500 1,500
SBC Communications (A) (B)
6.684%, 05/15/01 .............................. 3,000 3,000
SMM Trust 2000-E (A) (B)
6.649%, 03/14/01 .............................. 2,000 2,000
-------------------------------------------------------------------------------
Total Corporate Bonds
(Cost $19,499) ......................... 14,499
-------------------------------------------------------------------------------
BANK NOTES -- 6.2%
First Union
6.740%, 02/15/01 .............................. 2,000 2,000
First USA Bank
6.050%, 09/18/00 .............................. 2,000 2,000
Face
PRIME OBLIGATION MONEY Amount Value
MARKET PORTFOLIO (continued) (000) (000)
-------------------------------------------------------------------------------
Key Bank NA
6.500%, 01/29/01 .............................. $ 1,000 $ 1,000
Key Bank NA (A)
6.893%, 08/31/00 .............................. 2,000 2,000
Nationsbank (A)
6.901%, 12/06/00 .............................. 2,000 2,001
-------------------------------------------------------------------------------
Total Bank Notes
(Cost $9,001) .......................... 9,001
-------------------------------------------------------------------------------
FUNDING AGREEMENTS -- 5.5%
Metropolitan Life (A)
6.471%, 05/01/01 .............................. 2,000 2,000
Monumental Life (A)
6.480%, 08/01/00 ............................. 3,000 3,000
Travelers Insurance (A)
6.923%, 05/31/01 .............................. 3,000 3,000
-------------------------------------------------------------------------------
Total Funding Agreements
(Cost $3,000) .......................... 8,000
-------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 2.5%
Lehman Brothers (C)
6.600%, dated 07/31/00, matures
08/01/00, repurchase price
$1,200,220 (collateralized by
FNMA, total market
value: $1,223,972) ............................ 1,200 1,200
UBS Warburg Dillon (C) 6.630%, dated
07/31/00, matures 08/01/00,
repurchase price $2,400,442
(collateralized by FNMA, total
market value: $2,450,665) ..................... 2,400 2,400
-------------------------------------------------------------------------------
Total Repurchase Agreements
(Cost $3,600) .......................... 3,600
-------------------------------------------------------------------------------
Total Investments -- 100.0%
(Cost $144,542) ........................ 144,542
-------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET -- (0.0%) ....... (47)
-------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
STATEMENT OF NET ASSETS (concluded) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
PRIME OBLIGATION MONEY Value
MARKET PORTFOLIO (concluded) (000)
--------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 136,864,724 outstanding shares of
beneficial interest ..................................... $ 136,865
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 7,644,497 outstanding shares of
beneficial interest ..................................... 7,644
Undistributed Net Investment Income ......................... 2
Accumulated Net Realized Loss
on Investments .......................................... (16)
-------------------------------------------------------------------------------
Total Net Assets -- 100.0% .................................. $ 144,495
-------------------------------------------------------------------------------
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 July 31, 2000. The maturity date is shown as the next
reset date.
(B) Security sold within the terms of a private placement memorandum, exempt
from registration under section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or other
"accredited investors". This security has been determined to be liquid under
guidelines established by the Board of Directors.
(C) Tri-Party Repurchase Agreement
FNMA -- Federal National Mortgage Association
MTN -- Medium Term Note
NA -- North America
PLC -- Public Liability Company
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
THIS PAGE LEFT INTENTIONALLY BLANK.
26
<PAGE>
STATEMENT OF OPERATIONS (000) GOLDEN OAK FAMILY OF FUNDS
For the Period Ended July 31, 2000 Unaudited
<TABLE>
<CAPTION>
Prime
Tax- Intermediate- Michigan Obligation
Managed Small Cap International Term Tax Free Money
Growth Value Equity Value Equity Income Bond Market
Portfolio Portfolio Portfolio Portfolio Portfolio(2) Portfolio Portfolio Portfolio
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment Income:
Dividend Income ...... $ 239 $ 601 $ 158 $ 398 $ 28 $ -- $ -- $ --
Interest Income ...... 67 137 24 49 16 5,481 2,288 4,262
Less: Foreign
Taxes Withheld ...... -- (3) (1) -- (4) -- -- --
----------------------------------------------------------------------------------------------------------------------------
Total Investment
Income ........... 306 735 181 447 40 5,481 2,288 4,262
----------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees 140 126 65 84 3 405 222 152
Less: Waiver of Investment
Advisory Fees ...... -- -- (26) (20) (1) (116) (72) (116)
Investment Sub-
Advisory Fees ...... 165 160 77 160 6 -- -- 51
Administration Fees .. 82 77 38 49 2 162 89 135
Transfer Agent Fees .. 14 13 14 14 1 20 16 21
Custodian Fees ....... 3 3 2 4 2 2 1 5
Professional Fees .... 13 14 24 25 1 29 18 16
Registration Fees .... (2) 3 7 3 -- 7 3 (2)
Distribution Fees(1) . 16 10 -- 5 -- 8 -- 10
Trustee Fees ......... 3 3 2 1 -- 7 4 5
Printing Expenses .... 5 4 7 4 -- 9 5 5
Other Expenses ....... (1) (3) 2 10 1 2 4 (1)
----------------------------------------------------------------------------------------------------------------------------
Total Expenses, Net 438 410 212 339 15 535 290 281
----------------------------------------------------------------------------------------------------------------------------
Net Investment
Income (Loss) ...... (132) 325 (31) 108 25 4,946 1,998 3,981
----------------------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss)
on Securities Sold . 8,404 7,151 (24) 2,701 29 (525) 96 (1)
Net Realized Gain
on Foreign Currency
Transactions and Foreign
Currency Contracts . -- -- -- -- 154 -- -- --
Net Change in Unrealized
Appreciation on Foreign
Currency and Translation
of Other Assets and
Liabilities Denominated
in Foreign Currency -- -- -- -- 1 -- -- --
Net Change in Unrealized
Appreciation (Depreciation)
on Investments ..... (3,674) (6,685) (570) 4,710 (901) 2,713 1,356 --
----------------------------------------------------------------------------------------------------------------------------
Net Realized and
Unrealized Gain (Loss)
on Investments ..... 4,730 466 (594) 7,411 (717) 2,188 1,452 (1)
----------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease)
in Net Assets Resulting
From Operations .... $4,598 $ 791 $ (625) $7,519 $(692) $7,134 $3,450 $3,980
============================================================================================================================
</TABLE>
Amounts designated as "--" are either $0 or have been rounded to $0.
(1) All distribution fees are incurred in the Class A Shares
(2) Commenced operations on July 10, 2000.
The accompanying notes are an integral part of the financial statements.
27
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
For the Period Ended July 31, 2000 (Unaudited) and
the Year Ended January 31, 2000
<TABLE>
<CAPTION>
Tax-Managed
Growth Value Equity
Portfolio Portfolio Portfolio (1)
--------------------- -------------------- -----------------------
2/1/00 to 2/1/99 to 2/1/00 to 2/1/99 to 2/1/00 to 4/30/99 to
7/31/00 1/31/00 7/31/00 1/31/99 7/31/00 1/31/00
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment Operations:
Net Investment Income (Loss) ............................. $ (132) $ (135) $ 325 $ 194 $ (31) $ 10
Net Realized Gain (Loss) on Securities Sold .............. 8,404 14,035 7,151 3,992 (24) 10,547
Net Realized Gain on Foreign Currency
Transactions and Foreign Currency Contracts ............ -- -- -- -- --
Net Change in Unrealized Appreciation
on Foreign Currency and Translation of Other Assets
and Liabilities Denominated in Foreign Currency ........ -- -- -- -- --
Net Change in Unrealized Appreciation (Depreciation)
on Investments ......................................... (3,674) 3,733 (6,685) 342 (570) (9,345)
------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from
Investment Operations .................................... 4,598 17,633 791 4,528 (625) 1,212
------------------------------------------------------------------------------------------------------------------------------------
Distributions:
Net Investment Income
Class I ................................................ -- -- (282) (191) -- (52)
Class A ................................................ -- -- (24) (8) -- --
Realized Net Gains
Class I ................................................ -- (9,828) -- (2,795) -- (124)
Class A ................................................ -- (1,547) -- (385) -- (1)
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions ........................................ -- (11,375) (306) (3,379) -- (177)
------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Class I:
Proceeds from Shares Issued .............................. 26,913 17,489 18,971 16,869 118 536
Value from Shares Issued in Connection with Acquisition
of Common Trust Fund Assets (See note 8) ................ -- -- -- -- -- 45,238
Reinvestment of Cash Distributions ....................... -- 7,437 12 2,288 -- 125
Cost of Shares Redeemed .................................. (24,881) (13,940) (4,175) (7,956) (4,509) (6,624)
------------------------------------------------------------------------------------------------------------------------------------
Total Class I Share Transactions ........................... 2,032 10,986 14,808 11,201 (4,391) 39,275
------------------------------------------------------------------------------------------------------------------------------------
Class A:
Proceeds from Shares Issued .............................. 4,090 9,868 2,626 9,702 104 333
Reinvestment of Cash Distributions ....................... -- 1,544 24 392 -- 1
Cost of Shares Redeemed .................................. (1,172) (3,967) (788) (3,799) -- --
------------------------------------------------------------------------------------------------------------------------------------
Total Class A Share Transactions ........................... 2,918 7,445 1,862 6,295 104 334
------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Capital Share
Transactions ............................................ 4,950 18,431 16,670 17,496 (4,287) 39,609
------------------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets .................... 9,548 24,689 17,155 18,645 (4,912) 40,644
------------------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period ...................................... 75,726 51,037 66,229 47,584 40,644 --
------------------------------------------------------------------------------------------------------------------------------------
End of Period ............................................ $ 85,274 $ 75,726 $ 83,384 $ 66,229 $ 35,732 $ 40,644
------------------------------------------------------------------------------------------------------------------------------------
Shares Issued and Redeemed
Class I:
Shares Issued ............................................ 1,440 1,016 1,940 1,750 12 53
Shares Issued in Connection with Acquisition of Common
Trust Fund Assets (See note 8) .......................... -- -- -- -- -- 4,524
Shares Issued in Lieu of Cash Distributions .............. -- 424 1 240 -- 13
Shares Redeemed .......................................... (1,325) (811) (430) (806) (428) (659)
------------------------------------------------------------------------------------------------------------------------------------
Total Class I Share Transactions ........................... 115 629 1,511 1,184 (416) 3,931
------------------------------------------------------------------------------------------------------------------------------------
Class A:
Shares Issued ............................................ 222 590 268 984 10 33
Shares Issued in Lieu of Cash Distributions .............. -- 92 3 42 -- --
Shares Redeemed .......................................... (63) (215) (83) (388) -- --
------------------------------------------------------------------------------------------------------------------------------------
Total Class A Share Transactions ........................... 159 467 188 638 10 33
------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Capital Shares ...................... 274 1,096 1,699 1,822 (406) 3,964
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Small Cap International Intermediate-Term
Value Equity Income
Portfolio (2) Portfolio (3) Portfolio
-------------------- ------------- ------------------------
2/1/00 to 9/1/99 to 7/10/00 to 2/1/00 to 2/1/99 to
7/31/00 1/31/00 7/31/00 7/31/00 1/31/00
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Operations:
Net Investment Income (Loss) .......................... $ 108 $ 108 $ 25 $ 4,946 $ 8,890
Net Realized Gain (Loss) on Securities Sold ........... 2,701 794 29 (525) (1,476)
Net Realized Gain on Foreign Currency
Transactions and Foreign Currency Contracts ......... -- -- 154 -- --
Net Change in Unrealized Appreciation
on Foreign Currency and Translation of
Other Assets and Liabilities Denominated
in Foreign Currency ................................. -- -- 1 -- --
Net Change in Unrealized Appreciation
(Depreciation) on Investments ....................... 4,710 (2,037) (901) 2,713 (13,810)
-----------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Investment Operations .................. 7,519 (1,135) (692) 7,134 (6,396)
-----------------------------------------------------------------------------------------------------------------------------
Distributions:
Net Investment Income
Class I ............................................. (139) (97) -- (4,763) (8,548)
Class A ............................................. (8) (7) -- (183) (342)
Realized Net Gains
Class I ............................................. -- -- -- -- --
Class A ............................................. -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Total Distributions ..................................... (147) (104) -- (4,946) (8,890)
-----------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Class I:
Proceeds from Shares Issued ........................... 4,912 42,856 17,189 26,223 51,747
Value from Shares Issued in Connection
with Acquisition of Common Trust Fund
Assets (See note 8) .................................. -- -- -- -- --
Reinvestment of Cash Distributions .................... -- -- -- 155 38
Cost of Shares Redeemed ............................... (5,443) (1,226) -- (14,529) (37,533)
-----------------------------------------------------------------------------------------------------------------------------
Total Class I Share Transactions ........................ (531) 41,630 17,189 11,849 14,252
-----------------------------------------------------------------------------------------------------------------------------
Class A:
Proceeds from Shares Issued ........................... 1,234 4,023 1 921 11,082
Reinvestment of Cash Distributions .................... 8 7 -- 180 331
Cost of Shares Redeemed ............................... (517) (562) -- (1,165) (6,946)
-----------------------------------------------------------------------------------------------------------------------------
Total Class A Share Transactions ........................ 725 3,468 1 (64) 4,467
-----------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Capital Share Transactions ........................... 194 45,098 17,190 11,785 18,719
-----------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets ................. 7,566 43,859 16,498 13,973 3,433
-----------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period ................................... 43,859 -- -- 153,773 150,340
-----------------------------------------------------------------------------------------------------------------------------
End of Period ......................................... $ 51,425 $ 43,859 $ 16,498 $ 167,746 $ 153,773
-----------------------------------------------------------------------------------------------------------------------------
Shares Issued and Redeemed
Class I:
Shares Issued ......................................... 483 4,380 1,719 2,773 5,296
Shares Issued in Connection with
Acquisition of Common Trust Fund
Assets (See note 8) .................................. -- -- -- -- --
Shares Issued in Lieu of Cash
Distributions ........................................ -- -- -- 17 4
Shares Redeemed ....................................... (513) (129) -- (1,541) (3,887)
-----------------------------------------------------------------------------------------------------------------------------
Total Class I Share Transactions ........................ (30) 4,251 1,719 1,249 1,413
-----------------------------------------------------------------------------------------------------------------------------
Class A:
Shares Issued ......................................... 122 402 -- 98 1,148
Shares Issued in Lieu of Cash Distributions ........... 1 1 -- 19 35
Shares Redeemed ....................................... (50) (57) -- (124) (728)
-----------------------------------------------------------------------------------------------------------------------------
Total Class A Share Transactions ........................ 73 346 -- (7) 455
Increase (Decrease) in Capital Shares ................... 43 4,597 1,719 1,242 1,868
=============================================================================================================================
<CAPTION>
Michigan Prime Obligation
Tax Free Bond Money Market
Portfolio Portfolio
--------------------- ----------------------
2/1/00 to 2/1/99 to 2/1/00 to 2/1/99 to
7/31/00 1/31/00 7/31/00 1/31/00
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Operations:
Net Investment Income (Loss) ..................... $ 1,998 $ 3,965 $ 3,981 $ 6,196
Net Realized Gain (Loss) on Securities Sold ...... 96 24 (1) --
Net Realized Gain on Foreign Currency
Transactions and Foreign Currency Contracts .... -- -- -- --
Net Change in Unrealized Appreciation
on Foreign Currency and Translation of
Other Assets and Liabilities Denominated
in Foreign Currency ............................ -- -- -- --
Net Change in Unrealized Appreciation
(Depreciation) on Investments .................. 1,356 (5,549) -- --
---------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Investment Operations ............. 3,450 (1,560) 3,980 6,196
---------------------------------------------------------------------------------------------------------
Distributions:
Net Investment Income
Class I ........................................ (2,016) (3,925) (3,746) (5,865)
Class A ........................................ (5) (18) (236) (331)
Realized Net Gains
Class I ........................................ -- -- -- --
Class A ........................................ -- -- -- --
---------------------------------------------------------------------------------------------------------
Total Distributions ................................ (2,021) (3,943) (3,982) (6,196)
---------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Class I:
Proceeds from Shares Issued ...................... 6,072 21,235 127,031 203,890
Value from Shares Issued in Connection
with Acquisition of Common Trust Fund
Assets (See note 8) ............................. -- -- -- --
Reinvestment of Cash Distributions ............... 13 4 66 612
Cost of Shares Redeemed .......................... (6,956) (16,428) (104,593) (243,801)
---------------------------------------------------------------------------------------------------------
Total Class I Share Transactions ................... (871) 4,811 22,504 (39,299)
---------------------------------------------------------------------------------------------------------
Class A:
Proceeds from Shares Issued ...................... 63 565 5,962 17,939
Reinvestment of Cash Distributions ............... 5 17 233 328
Cost of Shares Redeemed .......................... -- (574) (7,129) (16,215)
---------------------------------------------------------------------------------------------------------
Total Class A Share Transactions ................... 68 8 (934) 2,052
---------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Capital Share Transactions ...................... (803) 4,819 21,570 (37,247)
---------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets ............ 626 (684) 21,568 (37,247)
---------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period .............................. 89,660 90,344 122,927 160,174
---------------------------------------------------------------------------------------------------------
End of Period .................................... $90,286 $89,660 $144,495 $122,927
---------------------------------------------------------------------------------------------------------
Shares Issued and Redeemed
Class I:
Shares Issued .................................... 624 2,126 127,031 203,890
Shares Issued in Connection with
Acquisition of Common Trust Fund
Assets (See note 8) ............................. -- -- -- --
Shares Issued in Lieu of Cash
Distributions ................................... 1 -- 66 612
Shares Redeemed .................................. (713) (1,648) (104,593) (243,801)
---------------------------------------------------------------------------------------------------------
Total Class I Share Transactions ................... (88) 478 22,504 (39,299)
---------------------------------------------------------------------------------------------------------
Class A:
Shares Issued .................................... 6 56 5,962 17,939
Shares Issued in Lieu of Cash Distributions ...... 1 2 233 328
Shares Redeemed .................................. -- (58) (7,129) (16,215)
---------------------------------------------------------------------------------------------------------
Total Class A Share Transactions ................... 7 -- (934) 2,052
---------------------------------------------------------------------------------------------------------
Increase (Decrease) in Capital Shares .............. (81) 478 21,570 (37,247)
=========================================================================================================
<FN>
Amounts designated as "--" are either $0 or have been rounded to $0.
(1) Commenced operations on April 30, 1999.
(2) Commenced operations on September 1, 1999
(3) Commenced operations on July 10, 2000.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
28-29
<PAGE>
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout the Period
For the Period Ended July 31, 2000 (Unaudited) and the Years Ended January 31,
<TABLE>
<CAPTION>
NET REALIZED DISTRIBUTIONS NET NET
ASSET AND ------------------- ASSET ASSETS RATIO OF
VALUE NET UNREALIZED NET NET VALUE END EXPENSES
BEGINNING INVESTMENT GAIN(LOSS) INVESTMENT REALIZED END TOTAL OF PERIOD TO AVERAGE
OF PERIOD INCOME (LOSS) ON INVESTMENTS INCOME GAIN OF PERIOD RETURN+ (000) NET ASSETS
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
GROWTH PORTFOLIO CLASS I
2000* $17.85 $ 0.01 $ 1.04 $ -- $ -- $18.90 5.88% $ 71,949 1.03%
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* $17.43 $ -- $ 1.01 $ -- $ -- $18.44 5.79% $ 13,325 1.28%
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* $ 9.45 $ 0.04 $ 0.13 $(0.04) $ -- $ 9.58 1.78% $ 74,366 1.04%
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* $ 9.41 $ 0.03 $ 0.13 $(0.03) $ -- $ 9.54 1.67% $ 9,018 1.29%
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* $10.26 $ -- $(0.22) $ -- $ -- $10.04 (2.14)% $ 35,296 1.10%
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* $10.24 $ -- $(0.23) $ -- $ -- $10.01 (2.25)% $ 436 1.35%
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* $ 9.54 $ 0.02 $ 1.55 $(0.03) $ -- $11.08 16.49% $ 46,782 1.35%
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* $ 9.54 $ 0.01 $ 1.55 $(0.02) $ -- $11.08 16.36% $ 4,643 1.60%
2000(3) 10.00 0.03 (0.47) (0.02) -- 9.54 (4.42) 3,305 1.60
INTERNATIONAL EQUITY PORTFOLIO CLASS I
2000(4) $10.00 $ 0.01 $(0.41) $ -- $ -- $ 9.60 (4.00)% $ 16,497 1.50%
INTERNATIONAL EQUITY PORTFOLIO CLASS A
2000(4) $10.00 $ 0.01 $(0.41) $ -- $ -- $ 9.60 (4.00)% $ 1 1.75%
===============================================================================================================
<CAPTION>
RATIO OF NET
RATIO OF RATIO OF INVESTMENT
NET EXPENSES INCOME (LOSS)
INVESTMENT TO AVERAGE TO AVERAGE
INCOME (LOSS) NET ASSET NET ASSETS PORTFOLIO
TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER
NET ASSETS WAIVERS) WAIVERS) RATE
------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
GROWTH PORTFOLIO CLASS I
2000* (0.28)% 1.03% (0.28)% 58.74%
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* (0.54)% 1.28% (0.54)% 58.74%
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* 0.87% 1.04% 0.87% 58.57%
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* 0.62% 1.29% 0.62% 58.57%
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* (0.16)% 1.24% (0.30)% 9.97%
2000(2) 0.03 1.21 (0.08) 32.30
TAX-MANAGED EQUITY PORTFOLIO CLASS A
2000* (0.42)% 1.49% (0.56)% 9.97%
2000(2) (0.34) 1.49 (0.48) 32.30
SMALL CAP VALUE PORTFOLIO CLASS I
2000* 0.46% 1.43% 0.38% 35.37%
2000(3) 0.76 1.55 0.56 10.86
SMALL CAP VALUE PORTFOLIO CLASS A
2000* 0.17% 1.68% 0.09% 35.37%
2000(3) 0.72 1.83 0.49 10.86
INTERNATIONAL EQUITY PORTFOLIO CLASS I
2000(4) 2.62% 1.60% 2.52% 6.53%
INTERNATIONAL EQUITY PORTFOLIO CLASS A
2000(4) 2.21% 1.85% 2.11% 6.53%
============================================================
<FN>
Amounts designated as "--" are either $0 or have been rounded to $0.
* For the period ended July 31, 2000 (Unaudited). All ratios for the period
have been annualized.
+ Total return does not reflect the sales charge on Class A shares. Return is
for the period indicated and has not been annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
30
<PAGE>
GOLDEN OAK FAMILY OF FUNDS
<TABLE>
<CAPTION>
NET REALIZED DISTRIBUTIONS NET
ASSET AND ------------------- NET ASSETS RATIO OF
VALUE NET UNREALIZED NET NET VALUE END EXPENSES
BEGINNING INVESTMENT GAIN(LOSS) INVESTMENT REALIZED END TOTAL OF PERIOD TO AVERAGE
OF PERIOD INCOME ON INVESTMENTS INCOME GAIN OF PERIOD RETURN+ (000) NET ASSETS
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INTERMEDIATE-TERM INCOME PORTFOLIO CLASS I
2000* $ 9.35 $ 0.29 $ 0.14 $(0.29) $ -- $ 9.49 4.62% $161,497 0.65%
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* $ 9.35 $ 0.27 $ 0.13 $(0.27) $ -- $ 9.48 4.38% $ 6,249 0.90%
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
MICHIGAN TAX FREE BOND PORTFOLIO CLASS I
2000* $ 9.72 $ 0.22 $ 0.16 $(0.22) $ -- $ 9.88 3.96% $ 89,999 0.65%
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* $ 9.72 $ 0.21 $ 0.16 $(0.21) $ -- $ 9.88 3.85% $ 287 0.90%
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 $ 0.03 $ -- $(0.03) $ -- $ 1.00 2.98% $136,852 0.40%
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 $ 0.03 $ -- $(0.03) $ -- $ 1.00 2.85% $ 7,643 0.65%
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
========================================================================================================
<CAPTION>
RATIO OF NET
RATIO OF RATIO OF INVESTMENT
NET EXPENSES INCOME
INVESTMENT TO AVERAGE TO AVERAGE
INCOME NET ASSETS NET ASSETS PORTFOLIO
TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER
NET ASSETS WAIVERS) WAIVERS) RATE
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INTERMEDIATE-TERM INCOME PORTFOLIO CLASS I
2000* 6.11% 0.79% 5.97% 6.46%
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* 5.86% 1.04% 5.72% 6.46%
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
MICHIGAN TAX FREE BOND PORTFOLIO CLASS I
2000* 4.50% 0.81% 4.34% 9.80%
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* 4.25% 1.06% 4.09% 9.80%
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* 5.93% 0.57% 5.76% --
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* 5.65% 0.82% 5.48% --
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 --
=======================================================================
<FN>
(1) Commenced operations on June 23, 1997. All ratios for the period have been
annualized.
(2) Commenced operations on April 30, 1999. All ratios for the period have been
annualized.
(3) Commenced operations on September 1, 1999. All ratios for the period have
been annualized.
(4) Commenced operations on July 10, 2000. All ratios for the period have been
annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
31
<PAGE>
NOTES TO FINANCIAL STATEMENTS GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
--------------------------------------------------------------------------------
1. Organization:
THE GOLDEN OAK FAMILY OF FUNDS are separate investment portfolios of The Arbor
Fund (the "Trust"). The Trust was organized as a Massachusetts business trust
under a Declaration of Trust dated July 24, 1992 and had no operations through
February 1, 1993 other than those related to organizational matters and the sale
of initial shares to SEI Investments Mutual Funds Services (the "Administrator")
on October 9, 1992. SEI Investments Management Corporation ("SEI Investments"),
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, Golden Oak International Equity
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. Foreign
securities in the Golden Oak International Equity Portfolio are valued based on
quotations from the primary market in which they are traded. 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.
The Golden Oak International Equity Portfolio may be subject to taxes imposed by
countries in which it invests with respect to its investments in issuers
existing or operating in such countries. Such taxes are generally based on
either income earned or repatriated. The Golden Oak International Equity Fund
accrues such taxes when the related income is earned.
--------------------------------------------------------------------------------
32
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
FOREIGN CURRENCY TRANSLATIONS -- The books and records of the Golden Oak
International Equity Portfolio are maintained in U.S. dollars. Foreign currency
amounts are translated into U.S. dollars on the following basis:
[BULLET] market value of investment securities, other assets and liabilities at
the current rate of exchange; and
[BULLET] purchases and sales of investment securities, income and expenses at
the relevant rates of exchange prevailing on the respective dates of
such transactions.
The Golden Oak International Equity Portfolio does not isolate that portion of
gains and losses on equity investment securities that is due to changes in
foreign exchange rates from that which is due to changes in market prices of
such securities.
The Golden Oak International Equity Portfolio reports gains and losses on
foreign currency related transactions as realized and unrealized gains and
losses for financial reporting purposes, whereas such gains and losses are
treated as ordinary income or loss for Federal income tax purposes.
SECURITY TRANSACTIONS AND RELATED INCOME -- Security transactions are accounted
for on the date the security is purchased or sold (trade date). Dividend income
is recognized on the ex-dividend date, and interest income is accrued as earned.
Costs used in determining realized gains and losses on sales of investment
securities are those of the specific securities sold. Purchase discounts and
premiums on securities held by the Bond Portfolios are accreted and amortized to
maturity using the effective interest method.
REPURCHASE AGREEMENTS -- The Portfolios invest in tri-party repurchase
agreements. It is the Trust's policy that securities held as collateral for
tri-party repurchase agreements are maintained in a 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
at least annually to Shareholders of the Golden Oak International Equity
Portfolio and quarterly to Shareholders of the remaining 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
33
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
to paid-in-capital in the period that the difference arises.
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,
International 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
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, .30% of the average
daily net assets of the International Equity 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 Growth, Value and Tax-Managed Equity Portfolios, 1.35% of the
average daily net assets of the Small Cap Value Portfolio, 1.50% of the average
daily net assets of the International Equity Portfolio, .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.
34
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
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.
BlackRock International, Ltd. serves as the investment sub-adviser for the
International Equity Portfolio pursuant to a sub-advisory agreement dated May
31, 2000, with the Trust and the Adviser and receives an annual fee, computed
daily and paid monthly, equal to .60% of the average daily net assets of the
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 the Distributor to act as an agent
in placing repurchase agreements for the Portfolios. For its services, the
Distributorreceived $3,621 for the period ended July 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 July 31, 2000, were as
follows:
Inter-
Tax- Small Inter- mediate- Michigan
Managed Cap national Term Tax Free
Growth Value Equity Value Equity Income Bond
(000) (000) (000) (000) (000) (000) (000)
---------------------------------------------------------------------------
Purchases:
U.S. Gov't $ -- $ -- $ -- $ -- $ -- $ 3,044 $ --
Other .... 52,771 55,641 3,777 19,150 17,214 6,465 8,416
Sales:
U.S. Gov't $ -- $ -- $ -- $ -- $ -- $ 2,005 $ --
Other .... 47,279 42,181 8,300 16,784 1,002 21,932 9,115
At July 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 July 31,
2000, for the Equity and Bond Portfolios are as follows:
Inter-
Tax- Small Inter- mediate- Michigan
Managed Cap national Term Tax Free
Growth Value Equity Value Equity Income Bond
(000) (000) (000) (000) (000) (000) (000)
---------------------------------------------------------------------------
Aggregate
Gross
Unrealized
Appreciation $19,277 $9,722 $21,838 $ 7,095 $ 201 $ 486 $1,299
Aggregate
Gross
Unrealized
Depreciation (2,991) (5,723) (13) (4,422) (1,102) (6,460) (865)
------- ------ ------- -------- ------ ------- ------
Net Unrealized
Appreciation/
(Depreciation)$16,286 $3,999 $21,825 $ 2,673 $ (901) $(5,974) $ 434
======= ====== ======= ======= ====== ======= ======
36
<PAGE>
NOTES TO FINANCIAL STATEMENTS (concluded) GOLDEN OAK FAMILY OF FUNDS
July 31, 2000 Unaudited
7. Forward Foreign Currency Contracts:
The Golden Oak International Equity Portfolio enters into forward foreign
currency exchange contracts as hedges against portfolio positions and in
connection with portfolio purchases and sales of securities denominated in a
foreign currency. Such contracts, which protect the value of the fund's
investment securities against a decline in the value of the hedged currency, do
not eliminate fluctuations in the underlying prices of the securities. They
simply establish an exchange rate at a future date. Although such contracts tend
to minimize the risk of loss due to a decline in the value of a hedged currency,
at the same time they tend to limit any potential gain that might be realized
should the value of such foreign currency increase.
There were no forward foreign currency contracts outstanding on July 31, 2000.
8. Concentration of Credit Risk:
The Money Market Portfolio invests primarily in money market instruments
maturing in 397 days or less whose ratings are within the two highest ratings
categories assigned by a nationally recognized statistical rating organization
or, if not rated, are believed by the Sub-Adviser to be of comparable quality.
The Bond Portfolios invest primarily in marketable debt instruments. The market
value of these investments will change in response to interest rate changes and
other factors. During periods of falling interest rates, the values of debt
securities generally rise. Conversely, during periods of rising interest rates
the values of such securities generally decline. The ability of the issuers of
the securities held by these Portfolios to meet their obligations may be
affected by economic and political developments in a specific industry, state or
region. Changes by recognized rating organizations in the ratings of any debt
security and in the ability of an issuer to make payments of interest and
principal may also affect the value of these investments.
The Golden Oak Michigan Tax Free Bond Portfolio invests in debt instruments of
municipal issuers. The issuers' ability to meet their obligations may be
affected by economic developments in a specific state or region. The Golden Oak
Michigan Tax Free Bond invests primarily in obligations located in Michigan.
9. 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
36
<PAGE>
NOTES
<PAGE>
[GRAPHIC OMITTED]
THE GOLDEN OAK FAMILY OF FUNDS
GROWTH PORTFOLIO
VALUE PORTFOLIO
TAX-MANAGED EQUITY PORTFOLIO
SMALL CAP VALUE PORTFOLIO
INTERNATIONAL EQUITY 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-002-05
