REMBRANDT FUNDS (REGISTRATION MARK)
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ANNUAL REPORT
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December 31, 1995
[GRAPHIC OMITTED]
(REMBRANDT LOGO)
<PAGE>
TABLE OF CONTENTS
Letter to Shareholders .............................1
Overview ...........................................2
Manager's Discussion and Analysis ..................5
Statement of Net Assets/
Schedule of Investments .........................22
Statement of Assets and Liabilities ...............54
Statement of Operations ...........................55
Statement of Changes in Net Assets ................58
Financial Highlights ..............................62
Notes to Financial Statements .....................72
Report of Independent Auditors ....................77
Notice to Shareholders ............................78
(REMBRANDT LOGO)
Rembrant and Rembrant Funds
are registered trademarks of
LaSalle National Trust
Shares of Rembrandt Funds are not sponsored or guaranteed by, and do not
constitute obligations of LaSalle National Trust, N.A. any of its affiliates, or
the U. S. Government, its agencies, or instrumentalities. Shares of Rembrandt
Funds are not insured by the Federal Deposit Insurance Corporation or any other
agency. Shares of Rembrandt Funds involve investment risks, including possible
loss of principal. LaSalle Street Capital Management, Ltd., an affiliate of
LaSalle National Trust, N.A. serves as the investment advisor to Rembrandt
Funds. Rembrandt Funds are distributed by Rembrandt Financial Services Company.
Rembrandt Financial Services Company is not an affiliate of LaSalle National
Trust, N.A.
<PAGE>
DECEMBER 31, 1995
(REMBRANDT LOGO)
LETTER TO SHAREHOLDERS
DEAR SHAREHOLDERS:
We have an outstanding year of performance to report to you, as nearly every
Rembrandt Fund outperformed its Lipper peer group. Our diversified approach, and
careful risk management, yielded solid results for 1995, including a notable
turnaround for the Rembrandt Small Cap Fund. We believe that 1995 demonstrates
our unshakable commitment to "the art of making money work."
As you read through this year's report, note that all of the Rembrandt domestic
stock Funds returned more than 30% for the year ended 12/31/95. Our
international Funds placed in the top 20% of their respective peer groups for
the same period. And, our domestic fixed income Funds continued with their
strong, consistent performance likewise outperforming their respective peer
group. I strongly urge you to read the following management reviews for each
specific Fund for more details on this most outstanding year.
The Rembrandt Family of Funds provides you with a wide range of investment
choices to make it easier to design a portfolio that meets your particular
needs. We think you will be pleased with this past year's results and look
forward to being a part of your financial future.
/s/ ANTONY EDGAR
Antony Edgar
President
LaSalle Street Capital Management, Ltd.
1
<PAGE>
Overview
MONEY MARKET FUNDS
MONEY MARKET FUND--This fund seeks to provide as high a level of current
income as is consistent with the preservation of capital and liquidity. It
invests exclusively in a variety of high quality money market instruments.
GOVERNMENT MONEY MARKET FUND-- This fund seeks to provide as high a level
of current income as is consistent with the preservation of capital and
liquidity. The main difference between this fund and the Treasury Money
Market Fund is that in addition to investing in Treasuries, it invests in
securities issued or guaranteed by the U.S. Government or its agencies.
TREASURY MONEY MARKET FUND-- The fund seeks to preserve principal value and
maintain a high degree of liquidity while providing current income. It
invests exclusively in short-term U.S. Treasury bills, notes and bonds.
TAX-EXEMPT MONEY MARKET FUND-- This fund seeks to preserve principal value,
maintain a high degree of liquidity, and provide current income exempt from
Federal income tax. It invests primarily in municipal securities with the
objective of providing maximum after-tax yield consistent with liquidity.
2
<PAGE>
DECEMBER 31, 1995
(REMBRANDT LOGO)
FIXED INCOME FUNDS
FIXED INCOME FUND-- This fund emphasizes corporate and government bonds and
other fixed income instruments.
INTERMEDIATE GOVERNMENT FIXED INCOME FUND-- This fund consists entirely of
short- and intermediate-term government securities. The fund is managed to
take advantage of anticipated changes in the direction of interest rates.
TAX-EXEMPT FIXED INCOME FUND-- This fund invests primarily in state and
local fixed income issues which are exempt from Federal income tax.*
GLOBAL FIXED INCOME FUND-- This fund invests primarily in fixed income
securities of various countries worldwide. It strives to take maximum
advantage of financial economic developments and currency fluctuations
from around the world.**
BALANCED FUND-- This fund consists of a mix of fixed income securities and
common stocks, both domestic and foreign. Its objective is to provide
diversification within a single portfolio. By altering the mix of equity
and fixed income securities, this fund seeks to take advantage of changing
market conditions to maximize returns.
* Income may be subject to federal Alternative Minimum Tax and state and
local taxes. Please consult your tax adviser.
** Foreign investing involves certain risks, such as currency fluctuations,
foreign taxation, differing standards of accounting and financial
disclosure, relatively low liquidity, and potential adverse political
situations.
3
<PAGE>
OVERVIEW (continued)
EQUITY FUNDS
GROWTH FUND-- The objective of this fund is to provide a high level of
total return through capital appreciation. It consists of diversified
common stocks and securities convertible into common stocks.
SMALL CAP FUND-- This fund also seeks a high level of total return through
capital appreciation. While the Growth Fund invests in companies of any
size, this fund invests at least 65% of its assets in the common stocks of
growth-oriented corporations with capitalization of less than $1 billion.
VALUE FUND-- This fund seeks a high level of total return through capital
appreciation and current income. Unlike the Growth Fund or the Small Cap
Fund, it invests in the common stocks of under-valued companies with large
capitalization and with consistent dividend history.
INTERNATIONAL EQUITY FUND-- This fund consists of common stocks and other
securities from companies in at least three countries other than the U.S.*
ASIAN TIGERS FUND-- This fund invests primarily in common stocks traded on
recognized stock exchanges of Asian countries and in the common stocks of
Asian companies, excluding Japan. Investments are allocated to various
Asian countries based on the attractiveness of the stocks.*
* Foreign investing involves certain risks, such as currency fluctuations,
foreign taxation, differing standards of accounting and financial
disclosure, relatively low liquidity, and potential adverse political
situations.
4
<PAGE>
DECEMBER 31, 1995
Manager's Discussion and Analysis (LOGO)
TREASURY MONEY MARKET FUND
The Rembrandt Treasury Money Market Fund recorded strong performance in
1995, outpacing its benchmark while retaining its standards of portfolio
quality.
For the 12 months ended December 31, 1995, the fund produced a total return
of 5.28% (Trust Class shares) and 5.02% (Investor Class shares). This compares
to a total return of 5.17% for the fund's benchmark, Donoghue's 100 U.S.
Treasury Average. Assets increased for the year, rising from $114.8 million on
January 1, 1995 to $118.4 million on December 31, 1995.
The fund's accomplishments were
attributable to favorable structuring of the portfolio throughout the year.
During the first two quarters, the fund used securities with shorter maturities
to take advantage of the rising rate environment. Later in the year, maturities
were lengthened to lock in higher rates in anticipation of a reduction in the
Federal Funds rate, which occurred in December. At year-end, the fund's average
weighted maturity was 56 days, just below the ceiling of 60 days for a AAA rated
fund.
Looking ahead, we believe that rates will continue to fall slightly in the
forthcoming months, although not to the degree which we saw during the early
1990's. We will continue to seek rate enhancement opportunities through the use
of portfolio structuring
strategies.
MONEY MARKET FUND
AND GOVERNMENT
MONEY MARKET FUND
Investors in the two taxable Rembrandt Money Market funds experienced
strong total returns in 1995, as both funds significantly outpaced the current
rate of inflation as well as their respective benchmarks.
For the 12 months ended December 31, 1995, the Rembrandt Money Market Fund
produced a total return of 5.64% (Trust Class shares) and 5.38% (Investor Class
shares). This compares to a total return of 5.49% for the fund's benchmark,
Donoghue's Total Taxable Average. Assets increased for the year, rising from
$461.2 million on January 1, 1995 to $477.0 million on December 31, 1995.
The Rembrandt Government Money Market Fund produced a total return of 5.59%
(Trust Class shares) and 5.33% (Investor Class shares). This compares to a total
return of 5.30% for the fund's benchmark, Donoghue's Total Government Average.
Assets increased for the year, rising from $159.9 million on January 1, 1995 to
$210.6 million on December 31, 1995.
The funds' excellent performance was attributable to their ability to
capitalize on market opportunities throughout the year.
During the first half, the yield curve was fairly steep and the funds
remained at the shorter end of the maturity spectrum to take advantage of rising
rates. By the third quarter,
5
<PAGE>
MANAGER'S DISCUSSION AND ANALYSIS (continued)
the curve had flattened, indicating that the market expected a rapid decline in
rates.
Based on a break-even analysis, the funds took the somewhat contrarian
viewpoint that the market was overly pessimistic, and used the opportunity to
lock in somewhat longer maturities. By doing so, the funds captured
above-average yields. This strategy would have continued through December, when
the rate cut actually occurred, but for cash flow demands that required a
shortening of maturities.
At year-end, the Money Market Fund's average weighted maturity was 45 days
and the Government Money Market Fund's average weighted maturity was 44 days,
well below their maximum maturities of 90 days.
Looking ahead, we will continue to maintain an independent outlook in order
to seek incremental yields for our funds.
TAX-EXEMPT MONEY
MARKET FUND
Despite the fact that there are no management fees to detract from the
theoretical returns of its benchmark, the Rembrandt Tax-Exempt Money Market Fund
exceeded that benchmark by a full ten basis points for 1995.
For the 12 months ended December 31, 1995, the fund produced a total return
of 3.49% (Trust Class shares) and 3.24% (Investor Class shares). This compares
to a total return of 3.39% for the fund's benchmark, Donoghue's Total Tax-Free
Average. Assets increased for the year, rising from $165.2 million on January 1,
1995 to $171.2 million on December 31, 1995.
The fund's strong performance was attributable to timing strategies that
enabled it to take advantage of rising rates earlier in the year, and then to
lock in higher rates prior to a decline later in the year. These strategies were
cut short somewhat by a late-year outflow of cash which led to a reduction of
the fund's average maturity to 62 days at year end.
Looking ahead, we believe that the municipal markets will remain cautious
due to the continuing debate over various "flat tax" proposals, which would have
negative implications for municipal bonds. However, we believe that this sector
continues to offer real value for conservative investors seeking liquidity and
relief from taxes.
6
<PAGE>
DECEMBER 31, 1995
(REMBRANDT LOGO)
FIXED INCOME FUND
Taking full advantage of a surging market, the Rembrandt Fixed Income Fund
generated excellent total returns through a combination of income and capital
gains.
For the 12 months ended December 31, 1995, the fund produced a total return
of 17.75% (Trust Class shares). This compares to a total return of 18.48% for
the fund's benchmark, the Lehman Aggregate Index.
Throughout 1995, performance in the fixed income markets hinged on a
portfolio's strategy regarding duration, the measure of how long it takes, on
average, for a portfolio's holdings to repay their principal and interest. For
most of the year, it was advantageous to remain on the longer side of the
benchmark's average duration in order to outperform. Because the Rembrandt Fixed
Income Fund entered the year with a somewhat shorter average duration, it began
with a disadvantage. However, by gradually extending the portfolio throughout
the year, eventually ending with a duration longer than that of the benchmark,
the fund was able to finish with a strong total return.
During a year when mortgage-backed securities underperformed Treasuries by
more than half of one percent, the fund's underweighting in this sector was a
positive factor. In addition, the fund benefitted from its holdings of
asset-backed securities, including those supported by credit card receivables.
At times, the fund was
[GRAPHIC OMITTED]
TRUST CLASS
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Rembrandt Fixed
Income Fund Trust Class from January 31, 1993 through December 31, 1995 as
compared with the growth of a $10,000 investment in the Lehman Brothers
Aggregate Bond Index and the Lipper Intermediate Investment-Grade Debt Funds
Average. The plot points used to draw the line graph were as follows:
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in Rembrandt Invested in Lehman Brothers Invested in Lipper
Fixed Income Fund Aggregate Bond Index Intermediate
Investment-Grade
Debt Funds Average
<S> <C> <C> <C>
01/31/93 $10,000 $10,000 $10,000
12/31/93 $10,760 $10,768 $10,741
12/31/94 $10,349 $10,455 $10,377
12/31/95 $12,186 $12,387 $12,090
</TABLE>
INVESTOR CLASS
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Rembrandt Fixed
Income Fund Investor Class from March 31, 1993 through December 31, 1995 as
compared with the growth of a $10,000 investment in the Lehman Brothers
Aggregate Bond Index and the Lipper Intermediate Investment-Grade Debt Funds
Average. The plot points used to draw the line graph were as follows:
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in Rembrandt Invested in Lehman Brothers Invested in Lipper
Fixed Income Fund Aggregate Bond Index Intermediate
Investment-Grade
Debt Funds Average
<S> <C> <C> <C>
03/31/93 $ 9,550 $10,000 $10,000
12/31/93 $10,057 $10,539 $10,507
12/31/94 $9,658 $10,232 $10,151
12/31/95 $11,339 $12,123 $11,827
</TABLE>
<TABLE>
<CAPTION>
Class of Shares One-Year Return Annualized Inception to Date
<S> <C> <C>
Trust 17.75% 7.57%
Investor 17.40% 6.45%
Investor w/load 12.10% 4.74%
</TABLE>
For the period ended December 31, 1995. Past performance of the Fund does not
predict future results.
substantially overweighted in these highly-rated securities, which outperformed
the market significantly in 1995. In corporate securities, we maintained a
relatively neutral position versus the benchmark.
7
<PAGE>
MANAGER'S DISCUSSION AND ANALYSIS (continued)
The fund maintained its average credit quality of AAA throughout the year,
and ended 1995 with an average maturity of 7.1 years.
Looking ahead, with inflation and
economic growth under control, we remain bullish on the bond market for the
long-term, although we do not expect a repeat of the exceptional performance of
the year just past. Therefore, we plan to maintain a relatively neutral maturity
level for the fund. In addition, we plan to emphasize asset-backed and
mortgage-backed issues, which we believe offer the quality and fundamental
values to provide strong overall returns in the months ahead.
INTERMEDIATE GOVERNMENT
FIXED INCOME FUND
The intermediate segment of the bond market offers what many investors
consider to be an ideal combination of relatively high income with relatively
moderate risk. In 1995, the returns for Rembrandt Intermediate Government Fixed
Income Fund demonstrated its ability to achieve the former, while its overall
portfolio quality and conservative approach helped to provide the latter.
For the 12 months ended December 31, 1995, the fund produced a total return
of 13.86% (Trust Class shares). This compares to a total return of 14.50% for
the fund's benchmark, the Lehman Intermediate Government Index.
The fund began the year in a relatively defensive posture, causing it the
miss out on some of the gains that took place early in the first quarter.
However, the portfolio was gradually adjusted to take advantage of the ongoing
shifts in the yield curve, and eventually made up any lost ground. Through much
of the year, the fund was overweighted in agency securities, which didn't
perform quite as well as Treasuries.
In December, continued uncertainty about a Federal budget compromise
threatened additional volatility in the market. Therefore, the portfolio was
shortened once again to bring maturities in line with the index. At year-end,
the fund's average maturity stood at 4.1 years.
8
<PAGE>
DECEMBER 31, 1995
(REMBRANDT LOGO)
[GRAPHIC OMITTED]
TRUST CLASS
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Rembrandt
Intermediate Government Fixed Income Fund Trust Class from January 31, 1993
through December 31, 1995 as compared with the growth of a $10,000 investment in
the Lehman Government Bond Index and the Lipper Short US Government Funds
Average and Merrill Lynch 1-5 Year Government Bond Index. The plot points used
to draw the line graph were as follows:
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in Rembrandt Invested in Lehman Invested in Lipper Invested in Merrill Lynch
Intermediate Government Government Bond Index Short US Government 1-5 year Government Bond Index
Fixed Income Fund Funds Average
<S> <C> <C> <C> <C>
01/31/93 $10,000 $10,000 $10,000 $10,000
12/31/93 $10,476 $10,835 $10,373 $10,533
12/31/94 $10,185 $10,470 $10,324 $10,467
12/31/95 $11,596 $12,389 $11,337 $11,803
</TABLE>
INVESTOR CLASS
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Rembrandt
Intermediate Government Fixed Income Fund Investor Class from April 30, 1993
through December 31, 1995 as compared with the growth of a $10,000 investment in
the Lehman Government Bond Index and the Lipper Short US Government Funds
Average and Merrill Lynch 1-5 Year Government Bond Index. The plot points used
to draw the line graph were as follows:
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in Rembrandt Invested in Lehman Invested in Lipper Invested in Merrill Lynch
Intermediate Government Government Bond Index Short US Government 1-5 year Government Bond Index
Fixed Income Fund Funds Average
<S> <C> <C> <C> <C>
04/30/93 $ 9,550 $10,000 $10,000 $10,000
12/31/93 $ 9,770 $10,507 $10,219 $10,292
12/31/94 $ 9,474 $10,152 $10,171 $10,227
12/31/95 $10,762 $12,013 $11,168 $11,533
</TABLE>
<TABLE>
<CAPTION>
Class of Shares One-Year Return Annualized Inception to Date
<S> <C> <C>
Trust 13.86% 5.49%
Investor 13.59% 4.54%
Investor w/load 8.47% 2.79%
</TABLE>
For the period ended December 31, 1995. Past performance of the Fund does not
predict future results.
Looking ahead, we expect a more stable market in 1996, without the highs
and lows experienced in the past two years. With slow growth and low inflation
to encourage additional easing in monetary policy, some degree of capital
appreciation is still possible, but most likely only a fraction of what was seen
in 1995.
In this environment, we believe that the intermediate government sector
remains a good place to be, offering attractive income, high quality, moderate
capital gains potential, and relatively low volatility.
9
<PAGE>
MANAGER'S DISCUSSION AND ANALYSIS (continued)
TAX-EXEMPT FIXED INCOME FUND
In 1995, the Rembrandt Tax Exempt Fixed Income Fund continued to provide a
competitive return, while placing a premium on quality and risk aversion.
For the 12 months ended December 31, 1995, the fund produced a total return
of 15.67% (Trust Class shares). This compares to a total return of 17.46% for
the fund's benchmark, the Lehman Municipal Bond Index.
In keeping with its conservative posture, the fund remained in the
intermediate part of the yield spectrum, while the majority of its peer group
sought higher yields in longer-term issues. Although this may have dampened the
fund's yield somewhat, we believe that such a strategy is prudent in light of
the ongoing uncertainty regarding potential tax law reform. The fund has also
placed an emphasis on revenue bonds, which we believe would fare better than
general obligation issues in the event of a flat tax.
Geographically, we have maintained a strategy of selecting issues from a
wide range of areas where economic strength ensures strong tax revenues. Among
the regions favored are the Rocky Mountain states, the Southwest, and the
Southeast. The fund is underweighted in the Mid-Atlantic and Northeast regions
of the country, and neutral in the Midwest.
[GRAPHIC OMITTED]
TRUST CLASS
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Rembrandt
Tax-Exempt Fixed Income Fund Trust Class from January 31, 1993 through December
31, 1995 as compared with the growth of a $10,000 investment in the Lehman
Brothers Muni Bond Index, Merrill Lynch 3-7 Year Muni Bond Index, Merrill Lynch
7-12 year Muni Bond Index, Lipper General Muni Debt Average and a Blend of the
above Merrill Lynch indices. The plot points used to draw the line graph were as
follows:
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in Invested in Invested in Invested in Invested in Invested in
Rembrand Lehman Merrill Lynch 3-7 Merrill Lynch Lipper General Blend of above
Tax-Exempt Brothers Muni Year Muni Bond 7-12 Year Muni Muni Debt Merrill Lynch
Fixed Income Bond Index Index Bond Index Average indices
Fund
<S> <C> <C> <C> <C> <C> <C>
01/31/93 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
12/31/93 $10,762 $11,099 $10,716 $10,923 $11,112 $10,820
12/31/94 $10,232 $10,525 $10,532 $10,531 $10,390 $10,533
12/31/95 $11,835 $12,363 $11,653 $12,105 $12,143 $11,880
</TABLE>
INVESTOR CLASS
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Rembrandt
Tax-Exempt Fixed Income Fund Investor Class from March 31, 1993 through December
31, 1995 as compared with the growth of a $10,000 investment in the Lehman
Brothers Muni Bond Index, Merrill Lynch 3-7 Year Muni Bond Index, Merrill Lynch
7-12 year Muni Bond Index, Lipper General Muni Debt Average and a Blend of the
above Merrill Lynch indices. The plot points used to draw the line graph were as
follows:
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in Invested in Invested in Invested in Invested in Invested in
Rembrand Lehman Merrill Lynch 3-7 Merrill Lynch Lipper General Blend of above
Tax-Exempt Brothers Muni Year Muni Bond 7-12 Year Muni Muni Debt Merrill Lynch
Fixed Income Bond Index Index Bond Index Average indices
Fund
<S> <C> <C> <C> <C> <C> <C>
03/31/93 $ 9,550 $10,000 $10,000 $10,000 $10,000 $10,000
12/31/93 $10,094 $10,826 $10,514 $10,717 $10,818 $10,615
12/31/94 $ 9,562 $10,266 $10,333 $10,332 $10,115 $10,333
12/31/95 $11,037 $12,059 $11,433 $11,876 $11,821 $11,655
</TABLE>
<TABLE>
<CAPTION>
Class of Shares One-Year Return Annualized Inception to Date
<S> <C> <C>
Trust 15.67% 6.11%
Investor 15.43% 4.83%
Investor w/load 10.18% 3.11%
</TABLE>
For the period ended December 31, 1995. Past performance of the Fund does not
predict future results.
10
<PAGE>
DECEMBER 31, 1995
(REMBRANDT LOGO)
The fund continued to maintain its high credit quality in 1995, with 80% of
the portfolio in AAA and insured AAA securities. At year-end, the fund's average
maturity was approximately 10.5 years.
Looking ahead, we believe that the
specter of a flat tax will continue to cloud the municipal market. This issue
may be resolved after the upcoming election, although it is easy to envision a
protracted debate well after November.
In view of this uncertainty, we will
continue with our course of maintaining
high quality, geographic diversity, and strong revenue streams. In addition, we
plan to remain in the intermediate range of the municipal market, which we
believe offers an optimum combination of yield and relative stability.
11
<PAGE>
MANAGER'S DISCUSSION AND ANALYSIS (continued)
GLOBAL FIXED INCOME FUND
While international bonds did not reach the heights of their domestic
counterparts, the Rembrandt Global Fixed Income Fund still posted strongly
positive results.
For the 12 months ended December 31, 1995, the fund produced a total return
of 20.99% (Trust Class shares). This compares to a total return of 21.12% for
the fund's benchmark, the J.P. Morgan Global Government Bond Index.
This strong performance was largely the result of a substantial decrease in
global interest rates and a depreciation of the U.S. dollar, which leads to
higher value from non-dollar investments. Roughly one-third of the fund's
performance was attributable to interest income, as the effective yield on the
portfolio was just above 6%.
Throughout the year, Japan was
underweighted in exposure, a factor that improved the Fund's performance during
a year when Japan was among the worst performing markets in local currency
terms.
Within Europe, the Fund was overweighted in core markets such as Germany,
The Netherlands, France, and Denmark,
particularly in the first half of the year. Since non-core markets outperformed
their larger counterparts, the net effect of this overweighting was slightly
negative for the performance of the Fund.
Looking ahead, we believe the stimulative fiscal policy in Japan is
beginning to work, and that Japan will show moderate growth in 1996. With bond
yields currently near historic lows, any increase in growth or inflation would
most likely result in higher bond yields in Japan.
[GRAPHIC OMITTED]
TRUST CLASS
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Rembrandt Global
Fixed Income Fund Trust Class from February 28, 1993 through December 31, 1995
as compared with the growth of a $10,000 investment in the JP Morgan Global
Government Non-US Bond Index and Lipper General World Income Funds Average.
The plot points used to draw the line graph were as follows:
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in Rembrandt Invested in JP Morgan Invested in Lipper General World
Global Global Government Non-US Income Funds Average
Fixed Income Fund Bond Index
<S> <C> <C> <C>
02/28/93 $10,000 $10,000 $10,000
12/31/93 $11,348 $11,162 $11,255
12/31/94 $11,182 $11,712 $10,591
12/31/95 $13,529 $14,186 $12,495
</TABLE>
INVESTOR CLASS
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Rembrandt Global
Fixed Income Fund Investor Class from April 30, 1993 through December 31, 1995
as compared with the growth of a $10,000 investment in the JP Morgan Global
Government Non-US Bond Index and Lipper General World Income Funds Average.
The plot points used to draw the line graph were as follows:
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in Rembrandt Invested in JP Morgan Invested in Lipper General World
Global Global Government Non-US Income Funds Average
Fixed Income Fund Bond Index
<S> <C> <C> <C>
02/28/93 $ 9,550 $10,000 $10,000
12/31/93 $10,122 $10,545 $10,912
12/31/94 $ 9,949 $11,064 $10,268
12/31/95 $12,006 $13,401 $12,114
</TABLE>
<TABLE>
<CAPTION>
Class of Shares One-Year Return Annualized Inception to Date
<S> <C> <C>
Trust 20.99% 11.44%
Investor 20.68% 8.13%
Investor w/load 15.23% 6.27%
</TABLE>
For the period ended December 31, 1995. Past performance of the Fund does not
predict future results.
12
<PAGE>
DECEMBER 31, 1995
(REMBRANDT LOGO)
In Europe, we believe the fundamentals are still moderately positive for
the bond markets, although the rally of 1995 encourages a degree of caution.
Therefore, we plan to keep our European weightings in line with those of the
index. In "dollar-block" markets such as Australia and Canada, we see further
yield convergence with the U.S. market, leading us to take a slightly
overweighted position in those countries.
Because a large portion of the Fund's gains in 1995 were attributable to
the depreciation of the dollar, any reversal of this trend would have an adverse
effect on the performance of the Fund, which does not pursue a hedging policy
against the U.S. dollar.
BALANCED FUND
The allocation of assets is the single most important factor in a
portfolio's performance. For this reason, the Rembrandt Balanced Fund adjusts
its allocation in order to provide investors with a truly balanced reflection of
the overall financial markets.
For the 12 months ended December 31, 1995, the fund produced a total return
of 21.85% (Trust Class shares). This compares to a total return of 24.65% for
the fund's peer group, the Lipper Balanced Funds Average.
The Fund's structure focuses on the three major categories of domestic
equities, international equities, and fixed income.
The domestic equities component of
the Fund focuses on dividend growth. For 1995, its performance was somewhat
below that of the S&P 500 Index. However, the portfolio has been adjusted to
seek more neutral performance in the future.
The international equity component of the fund is designed to provide
important diversification beyond the domestic markets. It is made up entirely of
American Depository Receipts (ADRs). The use of ADRs greatly simplifies the
Fund's trading and reduces the complexity of our portfolio. While the
international component was a drag on performance in 1995 (in comparison to the
U.S. Market), we believe that it will provide exceptional long term performance
potential and that it will often serve to reduce risk compared to an
all-domestic portfolio.
13
<PAGE>
MANAGER'S DISCUSSION AND ANALYSIS (continued)
The fixed income component of the Fund is designed to provide a high level
of total return form a portfolio consisting primarily of quality intermediate
and long-term fixed income securities. In 1995, this component benefited from a
strong bond market as the Federal Reserve Board began reducing short term
interest rates with cuts in July and December. The international bond holdings
within the component also performed well, while adding an important element of
diversification.
Looking ahead, we believe that our recent strategic improvements will
provide the type of disciplined diversification that investors seek in a
balanced portfolio.
[GRAPHIC OMITTED]
TRUST CLASS
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Rembrandt Balanced
Fund Trust Class from January 31, 1993 through December 31, 1995 as compared
with the growth of a $10,000 investment in the Standard & Poors 500 Composite
Index, Lehman Brother's Aggregate Bond Index and Lipper Flexible Portfolio Funds
Average.
The plot points used to draw the line graph were as follows:
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in Rembrandt Invested in Standard & Invested in Lehman Brother's Invested in Lipper Flexible
Balanced Fund Poor's 500 composite Aggregate Bond Index Portfolio Funds Average
Index
<S> <C> <C> <C> <C>
01/31/93 $10,000 $10,000 $10,000 $10,000
12/31/93 $10,612 $10,916 $10,768 $11,011
12/31/94 $10,388 $11,058 $10,455 $10,759
12/31/95 $12,658 $15,213 $12,387 $13,447
</TABLE>
INVESTOR CLASS
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Rembrandt Balanced
Fund Investor Class from March 31, 1993 through December 31, 1995 as compared
with the growth of a $10,000 investment in the Standard & Poor's 500 Composite
Index, Lehman Brother's Aggregate Bond Index and Lipper Flexible Portfolio Funds
Average.
The plot points used to draw the line graph were as follows:
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in Rembrandt Invested in Standard & Invested in Lehman Brother's Invested in Lipper Flexible
Balanced Fund Poor's 500 composite Aggregate Bond Index Portfolio Funds Average
Index
<S> <C> <C> <C> <C>
03/31/93 $ 9,550 $10,000 $10,000 $10,000
12/31/93 $ 9,896 $10,547 $10,539 $10,726
12/31/94 $ 9,670 $10,684 $10,232 $10,480
12/31/95 $11,751 $14,698 $12,123 $13,098
</TABLE>
<TABLE>
<CAPTION>
Class of Shares One-Year Return Annualized Inception to Date
<S> <C> <C>
Trust 21.85% 8.51%
Investor 21.52% 7.53%
Investor w/load 16.04% 5.80%
</TABLE>
For the period ended December 31, 1995. Past performance of the Fund does not
predict future results.
14
<PAGE>
DECEMBER 31, 1995
(REMBRANDT LOGO)
VALUE FUND
1995 was a very good year for the U.S. Stock markets and the Rembrandt
Value Fund.
For the 12 months ended December 31, 1995, the Fund produced a total return
of 32.02% (Trust Class shares). This compares to a total return of 37.57% for
the Fund's benchmark, the S&P 500 Index, and 30.48% for the Fund's peer group,
the Lipper
Growth Funds Average.
During the year, the Fund continued to pursue its strategic focus of
dividend growth, while also avoiding excessive relative weightings in any
particular sector.
An additional advantage of our focus on dividend growth is the longer term
perspective it gives to the portfolio. This results in lower annual turnover and
lower transaction costs, which, in turn, can improve return to the fund.
Looking ahead, we will seek to add value by continuing to apply our stock
selection disciplines, which have proven their effectiveness.
[GRAPHIC OMITTED]
TRUST CLASS
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Rembrandt Value
Fund Trust Class from January 31, 1993 through December 31, 1995 as compared
with the growth of a $10,000 investment in the Standard & Poor's 500 Composite
Index and the Lipper Growth Funds Average.
The plot points used to draw the line graph were as follows:
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in Rembrandt Invested in Standard & Invested in Lipper
Value Fund Poor's 500 composite Growth Funds Average
Index
<S> <C> <C> <C>
01/31/93 $10,000 $10,000 $10,000
12/31/93 $10,583 $10,916 $10,945
12/31/94 $10,583 $11,058 $10,723
12/31/95 $13,972 $15,213 $14,021
</TABLE>
INVESTOR CLASS
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Rembrandt Value
Fund Investor Class from March 31, 1993 through December 31, 1995 as compared
with the growth of a $10,000 investment in the Standard & Poor's 500 Composite
Index and the Lipper Growth Funds Average. The plot points used to draw the line
graph were as follows:
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in Rembrandt Invested in Standard & Invested in Lipper
Value Fund Poor's 500 composite Growth Funds Average
Index
<S> <C> <C> <C>
03/31/93 $9,550 $10,000 $10,000
12/31/93 $9,676 $10,547 $10,807
12/31/94 $9,656 $10,684 $10,588
12/31/95 $12,719 $14,698 $13,844
</TABLE>
<TABLE>
<CAPTION>
Class of Shares One-Year Return Annualized Inception to Date
<S> <C> <C>
Trust 32.02% 12.13%
Investor 31.72% 11.09%
Investor w/load 25.82% 9.26%
</TABLE>
For the period ended December 31, 1995. Past performance of the Fund does not
predict future results.
15
<PAGE>
MANAGER'S DISCUSSION AND ANALYSIS (continued)
GROWTH FUND
The Rembrandt Growth Fund lived up to its name in 1995, growing by nearly
one-third over its value at the start of the year.
For the 12 months ended December 31, 1995, the fund produced a total return
of 31.60% (Trust Class shares). This compares
to a total return of 37.57% for the fund's benchmark, the S&P 500 Index.
During the year, the fund was overweighted in the finance and technology
sectors, and underweighted in consumer areas with the exception of healthcare,
where it carried a neutral weighting. The overweighting in technology benefitted
the fund during the first nine months, but hurt its performance in the fourth
quarter. We did refocus the technology position in the fourth quarter on
companies we believed offered proprietary technologies and earnings visibility.
Looking ahead, our strategy is to maintain our modestly overweighted
position in technology and finance, but also to move more of the fund into
defensive issues such as regional telephone companies and companies with higher
yields.
We are confident that buying the shares of superior companies with good
earnings visibility at reasonable prices remains a winning strategy.
[GRAPHIC OMITTED]
TRUST CLASS
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Rembrandt Growth
Fund Trust Class from January 31, 1993 through December 31, 1995 as compared
with the growth of a $10,000 investment in the Standard & Poor's 500 Composite
Index and the Lipper Growth Funds Average.
The plot points used to draw the line graph were as follows:
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in Rembrandt Invested in Standard & Invested in Lipper
Growth Fund Poor's 500 composite Growth Funds Average
Index
<S> <C> <C> <C>
01/31/93 $10,000 $10,000 $10,000
12/31/93 $10,418 $10,916 $10,945
12/31/94 $10,204 $11,058 $10,723
12/31/95 $13,428 $15,213 $14,021
</TABLE>
INVESTOR CLASS
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Rembrandt Growth
Fund Investor Class from March 31, 1993 through December 31, 1995 as compared
with the growth of a $10,000 investment in the Standard & Poor's 500 Composite
Index and the Lipper Growth Funds Average.
The plot points used to draw the line graph were as follows:
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in Rembrandt Invested in Standard & Invested in Lipper
Growth Fund Poor's 500 composite Growth Funds Average
Index
<S> <C> <C> <C>
03/31/93 $ 9,550 $10,000 $10,000
12/31/93 $ 9,626 $10,547 $10,807
12/31/94 $ 9,393 $10,684 $10,588
12/31/95 $12,332 $14,698 $13,844
</TABLE>
<TABLE>
<CAPTION>
Class of Shares One-Year Return Annualized Inception to Date
<S> <C> <C>
Trust 31.60% 10.66%
Investor 31.29% 9.27%
Investor w/load 25.37% 7.51%
</TABLE>
For the period ended December 31, 1995. Past performance of the Fund does not
predict future results.
16
<PAGE>
DECEMBER 31, 1995
(REMBRANDT LOGO)
INTERNATIONAL EQUITY FUND
In a challenging year for international stocks, the Rembrandt International
Equity Fund outperformed its widely-used benchmark by a comfortable margin.
For the 12 months ended December 31, 1995, the Fund produced a total return
of 14.03% (Trust Class shares). This compares to a total return of 11.6% for the
Fund's benchmark, the Morgan Stanley Capital International EAFE (Europe,
Australia,
and Far East) Index.
In 1995, the global markets began sluggishly, due to a general loss of
confidence following the devaluation of the Mexican peso and other wrenching
currency movements. Furthermore, the important Japanese market was battered by
the earthquake in Kobe, problems in the financial system, and a weak economy.
Conditions improved throughout the year, however, as the peso and other
currencies stabilized, and as Japan's central bank moved to stimulate the
economy.
On balance, the main global stock
markets ended with gains, both in local
currencies and U.S. dollars. However, only
a few markets -- most notably Switzerland, Sweden, Belgium, The Netherlands, and
Hong Kong -- could keep pace with that of the U.S. By contrast, Italy and France
were out of favor due to political concerns, while emerging markets continued to
demonstrate high degrees of volatility.
[GRAPHIC OMITTED]
TRUST CLASS
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Rembrandt
International Equity Fund Trust Class from January 31, 1993 through December 31,
1995 as compared with the growth of a $10,000 investment in the Morgan Stanley
EAFE Index and the Lipper International Funds Average.
The plot points used to draw the line graph were as follows:
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in Rembrandt Invested in Morgan Invested in Lipper
International Equity Fund Stanley EAFE Index International Funds
Average
<S> <C> <C> <C>
01/31/93 $10,000 $10,000 $10,000
12/31/93 $12,715 $13,257 $13,536
12/31/94 $13,137 $14,288 $13,468
12/31/95 $14,980 $15,884 $14,733
</TABLE>
INVESTOR CLASS
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Rembrandt
International Equity Fund Investor Class from April 30, 1993 through December
31, 1995 as compared with the growth of a $10,000 investment in the Morgan
Stanley EAFE Index and the Lipper International Funds Average.
The plot points used to draw the line graph were as follows:
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in Rembrandt Invested in Morgan Invested in Lipper
International Equity Fund Stanley EAFE Index International Funds
Average
<S> <C> <C> <C>
04/30/93 $ 9,550 $10,000 $10,000
12/31/93 $10,739 $10,810 $11,919
12/31/94 $11,070 $11,651 $11,859
12/31/95 $12,597 $12,952 $12,973
</TABLE>
<TABLE>
<CAPTION>
Class of Shares One-Year Return Annualized Inception to Date
<S> <C> <C>
Trust 14.03% 14.21%
Investor 13.79% 11.78%
Investor w/load 8.68% 9.89%
</TABLE>
For the period ended December 31, 1995. Past performance of the Fund does not
predict future results.
In U.S. dollar terms the best performing international stocks have
represented sectors that are relatively insensitive to the economic cycle, such
as healthcare, financial services,
17
<PAGE>
MANAGER'S DISCUSSION AND ANALYSIS (continued)
and consumer non-durables. Capital goods issues have also performed well,
reaping the benefits of the ongoing investment cycle. The poorest performers
have been from the basic industries and energy sectors, which have been under
pressure due to changes in the supply/demand equation.
Encouraged by the improvements in Japan, the Fund reduced its
underweighting in Japanese issues during the year. At year end, in fact, six of
the fund's ten largest holdings were Japanese-based companies, led by Sony and
Honda Motor. The fund also purchased small positions in Finland and South
America. Weightings in a variety of healthcare, capital goods, and financial
services issues were enlarged to take advantage of growth in those sectors
worldwide.
Looking ahead, the downward movement in interest rates, due to moderate
economic growth and low inflation, along with the likelihood of better corporate
earnings, makes investing in international equities fairly attractive in
comparison to cash and bonds. Economic growth and valuation levels in the Far
East and emerging markets offer an opportunity for expansion of holdings. We
continue to believe that the key to good performance is stock selection.
SMALL CAP FUND
The Rembrandt Small Cap Fund had the distinction of being the top performer
in the Rembrandt family, in a year when all our equity funds generated
double-digit returns, and all domestic equity funds were up in excess of 30%.
For the 12 months ended December 31, 1995, the fund produced a total return
of 32.13% (Trust Class shares). This compares to a total return of 29.95% for
the S&P 600 Index, and 28.52% for the Russell 2000 Index.
What makes this stellar performance all the more remarkable is that it
occurred during a year in which the fund underwent an important repositioning.
In order to seek greater stability and more market-like performance in the years
ahead, the fund sold many issues on the lower end of the small cap spectrum in
favor of somewhat larger companies that offer less earnings variability and
greater liquidity.
We also adopted a more disciplined screening approach that emphasizes stock
selection within certain well-defined industry sectors that appear to be most
attractive. For example, the fund has recently increased its weighting in a
number of better-established healthcare and technology issues, which we believe
are well positioned for strong growth in the future.
18
<PAGE>
DECEMBER 31, 1995
(REMBRANDT LOGO)
While our shift in emphasis created some volatility during the early months
of 1995, the benefits became apparent later in the year as the fund grew more
stable while still outperforming its benchmark.
Looking ahead, we believe that the fund's structural changes will allow it
to mirror the overall market more closely in the coming months. In addition, we
believe that the market for small capitalization issues remains attractive,
although we are mindful that an increase in interest rates could adversely
impact the economy and stock prices. Therefore, we are confident that our more
risk-averse management style is particularly appropriate for the current
environment.
[GRAPHIC OMITTED]
TRUST CLASS
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Rembrandt Small
Cap Fund Trust Class from January 31, 1993 through December 31, 1995 as compared
with the growth of a $10,000 investment in the Frank Russell 2000 Index and
Lipper Small Company Growth Funds Average.
The plot points used to draw the line graph were as follows:
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in Rembrandt Invested in Frank Russell Invested in Lipper Small
Small Cap Fund 2000 Index Company Growth Funds Average
<S> <C> <C> <C>
01/31/93 $10,000 $10,000 $10,000
12/31/93 $10,300 $11,501 $11,437
12/31/94 $ 9,654 $11,291 $11,348
12/31/95 $12,756 $14,503 $14,928
</TABLE>
INVESTOR CLASS
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Rembrandt Small
Cap Fund Investor Class from April 30, 1993 through December 31, 1995 as
compared with the growth of a $10,000 investment in the Frank Russell 2000 Index
and Lipper Small Company Growth Funds Average.
The plot points used to draw the line graph were as follows:
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in Rembrandt Invested in Frank Russell Invested in Lipper Small
Small Cap Fund 2000 Index Company Growth Funds Average
<S> <C> <C> <C>
04/30/93 $ 9,550 $10,000 $10,000
12/31/93 $10,581 $11,726 $11,809
12/31/94 $ 9,889 $11,512 $11,716
12/31/95 $13,027 $14,786 $15,413
</TABLE>
<TABLE>
<CAPTION>
Class of Shares One-Year Return Annualized Inception to Date
<S> <C> <C>
Trust 32.13% 8.41%
Investor 31.73% 10.87%
Investor w/load 25.82% 9.00%
</TABLE>
For the period ended December 31, 1995. Past performance of the Fund does not
predict future results.
19
<PAGE>
MANAGER'S DISCUSSION AND ANALYSIS (concluded)
ASIAN TIGERS FUND
Investors in the Rembrandt Asian Tigers Fund generally recognize the
volatility of the emerging markets of the Pacific Rim. The past year illustrated
that this volatility can sometimes result in satisfactory, if unexciting,
performance.
For the 12 months ended December 31, 1995, the Fund produced a total return
of 11.61% (Trust Class shares). This compares to a total return of 13.36% for
the Fund's benchmark, the Morgan Stanley Capital International Pacific ex-Japan
Index, (which excludes Australia and New Zealand, the two countries outside of
our investment universe).
The year began with severe declines in the Asian markets, including a 15%
drop in Hong Kong, a 16.5% drop in Bangkok, and a 13.4% decline in Malaysia. In
anticipation of a bottoming out of these markets, the Fund deliberately built up
a higher cash position toward the end of 1994. Early in 1995, this cash was used
for aggressive purchasing in these and other markets, just before they began a
strong rally.
Throughout the year, Asian markets were influenced by the prospects for
U.S. interest rates. When rates unexpectedly fell in the third quarter, the
result was a minor rally in most Asian stock markets. However, subsequent data
released in the U.S. diminished the prospects for further rate cuts and
triggered consolidations in Asian stocks. During these declines, the Fund took
advantage of apparent undervaluations in such markets as Taiwan and the
Philippines.
The early December cut in U.S. interest rates, coupled with a strong U.S.
market, refocused investor attention on the compelling valuations in Asia.
During the last two weeks of the year, there was a substantial inflow of capital
into the leading markets such as Hong Kong and Singapore, which ended the year
with gains of approximately 23% and 8%, respectively.
During this period, the Fund continued to reduce its cash position in order
to increase exposure in a number of markets that currently appeared attractive,
particularly Thailand, Indonesia, and Hong Kong.
Looking ahead, prospects for most Asian markets appear promising at the
start of 1996. A combination of an easing in U.S. and European interest rates
and continued sound economic and corporate fundamentals should result in a good
environment for most equity markets. One additional factor working in favor of
Asian markets is a perceived shift in funds away from the U.S., where the
markets have performed exceedingly well in 1995 and valuations appear stretched.
International liquidity is already being credited for the rise seen in a number
of Asian markets during the last weeks of 1995.
20
<PAGE>
DECEMBER 31, 1995
(REMBRANDT LOGO)
[GRAPHIC OMITTED]
TRUST CLASS
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Rembrandt Asian
Tigers Fund Trust Class from January 31, 1994 through December 31, 1995 as
compared with the growth of a $10,000 investment in the Morgan Stanley Pacific
(ex-Japan) Index and Lipper Pacific Ex Japan Funds Average.
The plot points used to draw the line graph were as follows:
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in Rembrandt Invested in Morgan Stanley Invested in Lipper Pacific
Asian Tigers Fund Pacific (ex-Japan) Index Ex Japan Funds Average
<S> <C> <C> <C>
01/31/94 $10,000 $10,000 $10,000
12/31/94 $ 9,450 $ 9,557 $ 8,576
12/31/95 $10,547 $11,481 $ 8,719
</TABLE>
INVESTOR CLASS
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the Rembrandt Asian
Tigers Fund Investor Class from January 31, 1994 through December 31, 1995 as
compared with the growth of a $10,000 investment in the Morgan Stanley Pacific
(ex-Japan) Index and Lipper Pacific Ex Japan Funds Average.
The plot points used to draw the line graph were as follows:
<TABLE>
<CAPTION>
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000
Invested in Rembrandt Invested in Morgan Stanley Invested in Lipper Pacific
Asian Tigers Fund Pacific (ex-Japan) Index Ex Japan Funds Average
<S> <C> <C> <C>
01/31/94 $ 9,550 $10,000 $10,000
12/31/94 $ 9,009 $ 9,557 $ 8,576
12/31/95 $10,016 $ 8,576 $ 8,719
</TABLE>
<TABLE>
<CAPTION>
Class of Shares One-Year Return Annualized Inception to Date
<S> <C> <C>
Trust 11.61% 2.97%
Investor 11.18% 2.71%
Investor w/load 6.14% 0.34%
</TABLE>
For the period ended December 31, 1995. Past performance of the Fund does not
predict future results.
21
<PAGE>
Statement of Net Assets
TREASURY MONEY MARKET FUND
[GRAPHIC OMITTED]
A pie chart depicting the percent of total portfolio investments for the
following investment classifications:
Treasury Money Market Fund
U.S. Treasury Obligations 95%
Cash Equivalents 5%
% of Total Portfolio Investments
<TABLE>
<CAPTION>
Face
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
U.S. Treasury Obligations -- 95.0%
U.S. Treasury Bills
5.300%, 01/04/96 $ 3,000 $ 2,999
5.360%, 01/11/96 4,000 3,994
5.250%, 01/18/96 5,000 4,988
5.360%, 01/25/96 14,066 14,020
5.350%, 02/08/96 15,000 14,924
5.630%, 02/15/96 5,000 4,967
4.910%, 03/07/96 5,000 4,955
4.900%, 03/14/96 2,000 1,980
U.S. Treasury Notes
4.000%, 01/31/96 13,500 13,484
7.875%, 02/15/96 3,000 3,007
4.625%, 02/15/96 3,000 2,997
7.500%, 02/29/96 3,000 3,009
4.625%, 02/29/96 11,000 10,984
9.375%, 04/15/96 9,000 9,100
7.625%, 04/30/96 5,000 5,033
5.500%, 04/30/96 9,000 9,007
4.250%, 05/15/96 3,000 2,986
--------
Total U.S. Treasury Obligations
(Cost $112,434,000) 112,434
--------
</TABLE>
<TABLE>
<CAPTION>
Description Shares (000) Value (000)
========================================================
<S> <C> <C>
Cash Equivalent -- 4.7%
SEI Daily Income Trust Treasury
II Portfolio
5.120%, 01/08/96 $ 5,564 $ 5,564
--------
Total Cash Equivalent
(Cost $5,564,000) 5,564
--------
Total Investments -- 99.7%
(Cost $117,998,000) 117,998
--------
Other Assets and Liabilities -- 0.3%
Other Assets and Liabilities, Net 408
--------
Net Assets:
Portfolio shares of the Trust Class
(unlimited authorization -- no par value)
based on 110,466,966 outstanding shares
of beneficial interest 110,467
Portfolio shares of the Investor Class
(unlimited authorization -- no par value)
based on 7,930,873 outstanding shares of
beneficial interest 7,931
Accumulated net realized gain on investments 8
--------
Total Net Assets-- 100.0% $118,406
========
Net Asset Value, Offering, and Redemption
Price Per Share -- Trust Class $1.00
========
Net Asset Value, Offering, and Redemption
Price Per Share -- Investor Class $1.00
========
</TABLE>
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
DECEMBER 31, 1995
Statement of Net Assets (LOGO)
GOVERNMENT MONEY MARKET FUND
[GRAPHIC OMITTED]
A pie chart depicting the percent of total portfolio investments for the
following investment classifications:
Government Money Market Fund
U.S. Government Agency Obligations 60%
Repurchase Agreements 40%
% of Total Portfolio Investments
<TABLE>
<CAPTION>
Face
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
U.S. Government Agency Obligations -- 60.5%
FFCB
5.700%, 01/02/96 $ 5,000 $ 5,000
5.630%, 03/01/96 10,000 10,000
FHLB
7.310%, 01/04/96 275 275
7.750%, 04/25/96 1,000 1,006
FHLB Discount Notes
5.560%, 01/22/96 3,000 2,990
5.710%, 01/23/96 4,000 3,986
5.570%, 02/12/96 5,000 4,968
5.570%, 02/21/96 5,000 4,961
5.620%, 02/27/96 7,580 7,514
5.630%, 02/29/96 13,000 12,883
5.390%, 03/19/96 13,410 13,253
FHLMC Discount Notes
5.650%, 02/08/96 8,000 7,953
5.560%, 02/20/96 5,000 4,961
5.620%, 02/29/96 4,000 3,964
</TABLE>
<TABLE>
<CAPTION>
Face
Description Amount/Shares (000) Value (000)
========================================================
<S> <C> <C>
FNMA
5.660%, 03/15/96 $ 4,000 $ 4,000
FNMA Discount Notes
5.650%, 02/15/96 7,140 7,090
5.570%, 02/16/96 5,000 4,964
5.620%, 03/04/96 3,220 3,189
5.490%, 03/11/96 5,000 4,947
5.380%, 04/12/96 5,000 4,924
5.230%, 09/05/96 5,000 4,820
5.200%, 10/24/96 5,000 4,785
SLMA (A)
5.400%, 01/30/96 5,000 5,001
--------
Total U.S. Government Agency
Obligations
(Cost $127,434,000) 127,434
--------
Repurchase Agreements -- 39.8%
Lehman Brothers
5.93%, dated 12/29/95, matures
01/02/96, repurchase price
$37,438,000 (collateralized by
FHLMC Gold Note, par value
$42,440,000, 6.50%, 07/01/09,
market value: $38,160,000) 37,413 37,413
Nomura Securities
5.93%, dated 12/29/95, matures
01/02/96, repurchase price
$46,424,000 (collateralized by
various FNMA obligations, total
par value $129,559,479, 0.00%-
11.088%, 06/25/21-06/01/24; and
FHLMC/GNMA obligation, par value
$1,000,000, 5.00%, 04/25/21,
total market value: $47,322,000) 46,394 46,394
--------
Total Repurchase Agreements
(Cost $83,807,000) 83,807
--------
Total Investments -- 100.3%
(Cost $211,241,000) 211,241
--------
Other Assets and Liabilities -- (0.3%)
Other Assets and Liabilities, Net (624)
--------
</TABLE>
23
<PAGE>
Statement of Net Assets
<TABLE>
<CAPTION>
Description Value (000)
========================================================
<S> <C>
Net Assets:
Portfolio shares of the Trust Class
(unlimited authorization -- no par
value) based on 207,584,587
outstanding shares of beneficial
interest $ 207,585
Portfolio shares of the Investor Class
(unlimited authorization -- no par
value) based on 3,002,229 outstanding
shares of beneficial interest 3,002
Accumulated net realized gain on investments 30
---------
Total Net Assets-- 100.0% $210,617
========
Net Asset Value, Offering, and Redemption
Price Per Share -- Trust Class $1.00
========
Net Asset Value, Offering, and Redemption
Price Per Share -- Investor Class $1.00
========
<FN>
- --------------------------------------------------------------------------------
(A) Variable rate instrument. The rate reflected on the Statement of Net Assets
is the rate in effect on December 31, 1995.
FFCB -- Federal Farm Credit Bank
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
GNMA -- Government National Mortgage Association
SLMA -- Student Loan Marketing Association
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
DECEMBER 31, 1995
Statement of Net Assets (LOGO)
MONEY MARKET FUND
[GRAPHIC OMITTED]
A pie chart depicting the percent of total portfolio investments for the
following investment classifications:
Money Market Fund
Certificates of Deposit 41%
Commercial Paper 19%
U.S. Government Agency Obligations 30%
Corporate Bonds 1%
Repurchase Agreements 9%
% of Total Portfolio Investments
<TABLE>
<CAPTION>
Face
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
Certificates Of Deposit -- 40.7%
Bank of Nova Scotia, New York
5.750%, 03/04/96 $ 8,000 $ 8,000
Barclays Bank, New York
5.770%, 01/16/96 18,000 18,000
Bayerische Vereinsbank, New York
5.730%, 01/30/96 15,000 15,000
Canadian Imperial Bank of
Commerce, New York
5.730%, 02/01/96 18,000 18,000
Commerzbank, New York
5.690%, 03/04/96 15,000 15,001
Credit Suisse, New York
5.770%, 01/22/96 10,000 10,000
Deutsche Bank, New York
5.770%, 01/19/96 8,000 8,000
5.790%, 01/25/96 10,000 10,000
Harris Trust Savings Bank
5.600%, 02/15/96 10,000 10,000
NBD Bank
5.750%, 01/18/96 10,000 10,000
National Westminster Bank,
New York
5.830%, 01/12/96 8,000 8,000
5.810%, 01/31/96 5,000 5,000
5.720%, 02/16/96 5,000 5,001
</TABLE>
<TABLE>
<CAPTION>
Face
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
Rabobank Nederland NV, New York
5.710%, 02/14/96 $ 8,000 $ 8,000
5.810%, 01/23/96 10,000 10,000
Societe Generale Bank, New York
5.780%, 01/12/96 8,000 8,000
5.750%, 02/15/96 5,000 5,000
5.860%, 03/20/96 5,000 5,001
Wachovia Bank
5.770%, 01/12/96 10,000 10,000
5.810%, 01/25/96 8,000 8,000
--------
Total Certificates Of Deposit
(Cost $194,003,000) 194,003
--------
Commercial Paper -- 19.3%
American Express Credit
5.490%, 03/25/96 18,000 17,769
Associates Corporation of
North America
5.580%, 03/27/96 18,000 17,760
Enterprise Funding
5.700%, 01/05/96 8,000 7,995
5.770%, 01/16/96 8,000 7,981
General Electric Capital
5.680%, 02/13/96 8,000 7,946
5.530%, 04/01/96 5,000 4,930
Golden Managers Acceptance
5.800%, 01/31/96 10,000 9,952
Norwest
5.720%, 01/23/96 10,000 9,965
5.720%, 01/26/96 8,000 7,968
--------
Total Commercial Paper
(Cost $92,266,000) 92,266
--------
U.S. Government Agency Obligations -- 30.1%
FFCB
5.700%, 01/02/96 10,000 10,000
FHLB Discount Notes
5.550%, 01/17/96 10,000 9,975
5.570%, 02/12/96 10,000 9,935
5.650%, 02/15/96 8,845 8,784
5.570%, 02/21/96 10,000 9,921
5.630%, 02/29/96 10,000 9,909
5.540%, 03/13/96 10,975 10,857
5.550%, 03/25/96 12,000 11,849
</TABLE>
25
<PAGE>
Statement of Net Assets
<TABLE>
<CAPTION>
Face
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
FHLMC Discount Note
5.620%, 02/29/96 $ 7,000 $ 6,936
FNMA Discount Notes
5.660%, 02/14/96 15,000 14,898
5.580%, 03/12/96 11,000 10,883
5.420%, 05/10/96 10,000 9,805
5.500%, 05/30/96 10,000 9,777
SLMA (A)
5.400%, 01/30/96 10,000 10,002
--------
Total U.S. Government Agency Obligations
(Cost $143,531,000) 143,531
--------
Corporate Bonds -- 1.1%
General Electric Capital MTN
5.850%, 08/29/96 5,000 4,998
--------
Total Corporate Bonds
(Cost $4,998,000) 4,998
--------
Repurchase Agreements -- 8.9%
Nomura Securities
5.95%, dated 12/29/95, matures
01/02/96, repurchase price
$42,686,000 (collateralized by
various FNMA obligations, total
par value $70,195,574, 0.00%-
6.50%, 09/25/22-06/01/24, total
market value: $43,511,000) 42,658 42,658
--------
Total Repurchase Agreements
(Cost $42,658,000) 42,658
--------
Total Investments -- 100.1%
(Cost $477,456,000) 477,456
--------
Other Assets and Liabilities -- (0.1%)
Other Assets and Liabilities, Net (410)
--------
</TABLE>
<TABLE>
<CAPTION>
Description Value (000)
========================================================
<S> <C>
Net Assets:
Portfolio shares of the Trust Class
(unlimited authorization -- no par
value) based on 475,683,858 outstanding
shares of beneficial interest $ 475,684
Portfolio shares of the Investor Class
(unlimited authorization -- no par
value) based on 1,358,282 outstanding
shares of beneficial interest 1,358
Accumulated net realized gain on investments 4
--------
Total Net Assets-- 100.0% $477,046
========
Net Asset Value, Offering, and Redemption
Price Per Share -- Trust Class $1.00
========
Net Asset Value, Offering, and Redemption
Price Per Share -- Investor Class $1.00
========
<FN>
- --------------------------------------------------------------------------------
(A) Variable rate instrument. The rate reflected on the Statement of Net Assets
is the rate in effect on December 31, 1995.
FFCB -- Federal Farm Credit Bank
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
MTN -- Medium Term Notes
SLMA -- Student Loan Marketing Association
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
DECEMBER 31, 1995
Statement of Net Assets (LOGO)
TAX-EXEMPT MONEY MARKET FUND
[GRAPHIC OMITTED]
A pie chart depicting the percent of total portfolio investments for the
following investment classifications:
Tax-Exempt Money Market Fund
Municipal Bonds 93%
Cash Equivalents 7%
% of Total Portfolio Investments
<TABLE>
<CAPTION>
Face
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
Municipal Bonds -- 92.6%
Alabama -- 3.2%
Housing Finance Authority,
Rime V. Uage Hoover Project
1988-A TECP
3.600%, 02/22/96 $ 1,500 $ 1,500
Montgomery, Industrial
Development Board, GE
Project Ser 1990 TECP
3.800%, 01/08/96 4,000 4,000
--------
5,500
--------
Arizona -- 4.7%
Salt River Project,
Agricultural Improvement
& Power District TECP
3.800%, 01/18/96 (C) 4,000 4,000
3.550%, 01/29/96 4,000 4,000
--------
8,000
--------
</TABLE>
<TABLE>
<CAPTION>
Face
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
Colorado -- 1.2%
El Paso County, School
District #11,
Colorado Springs TAN
3.950%, 06/28/96 $ 2,000 $ 2,001
--------
Florida -- 8.7%
Jacksonville, Electric
Authority TECP
3.800%, 01/12/96 3,000 3,000
3.450%, 01/19/96 5,100 5,100
Municipal Power Agency, Pooled
Loan Project TECP
3.450%, 01/31/96 6,815 6,815
--------
14,915
--------
Georgia -- 2.9%
Gwinnett County, School
District GO
4.400%, 02/01/96 5,000 5,003
--------
Idaho -- 0.2%
State TAN
4.500%, 06/27/96 400 401
--------
Illinois -- 5.4%
Cook County, Catholic Charities
Housing Development
Ser A VRDN
5.200%, 01/05/96 (A) (B) 1,000 1,000
Dupage, Water Commission RAN
5.900%, 05/01/96 1,000 1,007
State Development Finance
Authority, Saint Xavier
University Project VRDN
5.200%, 01/05/96 (A) (B) (C) 180 180
State Development Finance
Authority, Catholic Charities
Housing Development VRDN
5.200%, 01/05/96 (A) (B) 500 500
State RAN
4.500%, 04/12/96 500 501
4.500%, 05/10/96 6,000 6,015
--------
9,203
--------
</TABLE>
27
<PAGE>
Statement of Net Assets
<TABLE>
<CAPTION>
Face
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
Indiana -- 5.0%
Hoosier City of Sullivan,
Energy Rural Electric
Corporation Ser L-4 TECP
3.600%, 02/05/96 $ 2,100 $ 2,100
Jasper County, Pollution
Control Revenue, Northern
Indiana Public Service
Project Ser 1988-A TECP
3.900%, 01/09/96 (C) 1,600 1,600
3.650%, 01/09/96 (C) 1,000 1,000
Mount Vernon, Pollution Control
& Solid Waste Disposal
Revenue Ser 1989-A TECP
3.700%, 01/11/96 3,900 3,900
--------
8,600
--------
Kansas -- 0.9%
Burlington, Pollution Control
Revenue, Kansas City Power &
Light Ser 1985-A TECP
3.550%, 02/02/96 (C) 1,500 1,500
--------
Kentucky -- 1.2%
Jefferson County, Pollution
Control Revenue, Louisville
Gas & Electric Project Ser
1993-A TECP
3.850%, 01/08/96 2,000 2,000
--------
Maine -- 0.7%
State GO
6.000%, 04/15/96 1,185 1,193
--------
Maryland -- 1.5%
Montgomery County, BAN
Ser 95 TECP
3.700%, 01/11/96 2,500 2,500
--------
Minnesota -- 7.1%
Becker, Pollution Control
Revenue, Northern States
Power Company
Ser 1993-B TECP
3.800%, 01/09/96 4,000 4,000
University of Minnesota,
Ser A TECP
3.850%, 01/22/96 8,075 8,075
--------
12,075
--------
</TABLE>
<TABLE>
<CAPTION>
Face
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
Mississippi -- 3.5%
Clairborne County, Pollution
Control Revenue, Southern
Mississippi Electric Power
Association TECP
3.550%, 01/17/96 $ 5,000 $ 5,000
Hinds County, Urban Renewal,
Physicians Office Building
Group VRDN (A) (C)
5.300%, 01/05/96 965 965
--------
5,965
--------
Montana -- 2.3%
State TAN
4.500%, 06/30/96 4,000 4,016
--------
Nebraska -- 4.4%
Omaha, Public Power District
TECP
3.800%, 01/10/96 1,610 1,610
3.700%, 02/12/96 5,850 5,850
--------
7,460
--------
New York -- 5.8%
New York City GO Ser B VRDN
5.000%, 01/02/96 (A)(B) 3,000 3,000
New York City Ser A TAN
4.500%, 02/15/96 3,000 3,003
New York City Ser B RAN
4.750%, 06/28/96 (FGIC) 4,000 4,015
--------
10,018
--------
Ohio -- 3.7%
Toledo-Lucas County, Port
Authority Revenue, CSX
Transportation Project TECP
3.650%, 01/03/96 6,400 6,400
--------
Pennsylvania -- 1.6%
State TAN
4.500%, 06/28/96 2,800 2,810
--------
Rhode Island -- 0.7%
State TAN
4.500%, 06/28/96 (C) 1,250 1,254
--------
</TABLE>
28
<PAGE>
DECEMBER 31, 1995
Statement of Net Assets (LOGO)
<TABLE>
<CAPTION>
Face
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
South Carolina -- 2.9%
York County, Pollution Control
Revenue, North Carolina
Electric Power Ser N-5
3.750%, 03/15/96 (C) $ 4,000 $ 4,000
York County, Pollution Control
Revenue, Saluda River
Project
3.800%, 02/16/96 (A) 1,000 1,000
--------
5,000
--------
Texas -- 10.4%
Board of Regents of The
University of Texas, Revenue
Financing System Ser A TECP
3.850%, 01/18/96 1,600 1,600
3.900%, 01/10/96 1,425 1,425
Dallas County, Refunding
Ser A GO
3.700%, 08/15/96 1,650 1,649
Harris County TAN
4.250%, 02/28/96 1,900 1,902
Houston Texas Independent School
District TRAN
4.500%, 08/29/96 2,120 2,128
State Ser A TRAN
4.750%, 08/30/96 8,000 8,040
Texas Higher Education Authority
SER B VRDN (FGIC)
5.150%, 01/05/96 (A) 1,095 1,095
--------
17,839
--------
Vermont -- 2.3%
State GO TECP
3.600%, 02/21/96 4,000 4,000
--------
</TABLE>
<TABLE>
<CAPTION>
Face
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
Virginia -- 5.3%
Commonwealth of Virginia TECP
3.400%, 02/01/96 $ 6,000 $ 6,000
Peninsula Ports Authority,
Coal Terminal RB, Dominion |
Terminal Associates
Project TECP
3.450%, 01/31/96 (C) 3,000 3,000
--------
9,000
--------
Washington -- 1.1%
State GO
6.750%, 07/01/96 1,775 1,800
--------
Wisconsin -- 0.9%
Milwaukee, Revenue School Order
Note Ser B
4.750%, 08/22/96 1,500 1,509
--------
Wyoming -- 5.0%
Gillette-Campbell County, Pollution
Control Revenue, Pacificorp
Project Ser 1988 TECP
3.450%, 01/16/96 8,500 8,500
--------
Total Municipal Bonds
(Cost $158,462,000) 158,462
--------
Cash Equivalents -- 7.0%
Dreyfus Tax Exempt
Cash Management Fund
4.430%, 01/08/96 7,560 7,560
SEI Tax Exempt Trust
Institutional Tax Free
Portfolio
4.200%, 01/08/96 4,487 4,487
--------
Total Cash Equivalents
(Cost $12,047,000) 12,047
--------
Total Investments -- 99.6%
(Cost $170,509,000) 170,509
--------
Other Assets and Liabilities -- 0.4%
Other Assets and Liabilities, Net 680
--------
</TABLE>
29
<PAGE>
Statement of Net Assets
<TABLE>
<CAPTION>
Description Value (000)
========================================================
<S> <C>
Net Assets:
Portfolio shares of the Trust Class
(unlimited authorization -- no par value)
based on 167,955,931 outstanding shares
of beneficial interest $ 167,956
Portfolio shares of the Investor Class
(unlimited authorization -- no par value)
based on 3,243,788 outstanding shares of
beneficial interest 3,244
Accumulated net realized loss on investments (11)
--------
Total Net Assets-- 100.0% $171,189
========
Net Asset Value, Offering, and Redemption
Price Per Share -- Trust Class $1.00
========
Net Asset Value, Offering, and Redemption
Price Per Share -- Investor Class $1.00
========
<FN>
- --------------------------------------------------------------------------------
(A) Variable rate instrument. The rate reflected on the Statement of Net Assets
is the rate in effect on December 31, 1995.
(B) Put and demand features exist requiring the issuer to repurchase the instrument
prior to maturity. The maturity date shown is the earlier of the put date or
the maturity date.
(C) Securities are held in connection with a letter of credit or other credit support.
BAN -- Bond Anticipation Note
GO -- General Obligation
RAN -- Revenue Anticipation Note
RB -- Revenue Bond
Ser -- Series
TAN -- Tax Anticipation Note
TECP -- Tax Exempt Commercial Paper
TRAN -- Tax and Revenue Anticipation Note
VRDN -- Variable Rate Demand Note
The following organization has provided underlying credit support for certain
securities as defined in the Statement of Net Assets. FGIC -- Federal Guaranty
Insurance Corporation
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
30
<PAGE>
DECEMBER 31, 1995
Statement of Net Assets (LOGO)
FIXED INCOME FUND
[CHART OMITTED]
A pie chart depicting the percent of total portfolio investments for the
following investment classifications:
Fixed Income Fund
U.S. Government Agency Obligations 1%
Repurchase Agreements 1%
U.S. Treasury Obligations 44%
U.S. Government Agency Mortgage-Backed Obligations 20%
Asset-Backed Securities 17%
Corporate Obligations 17%
% of Total Portfolio Investments
<TABLE>
<CAPTION>
Face
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
U.S. Treasury Obligations -- 44.0%
U.S. Treasury Bond
10.750%, 08/15/05 $14,970 $ 20,578
7.250%, 05/15/16 8,750 9,986
U.S. Treasury Notes
6.375%, 06/30/97 8,000 8,135
5.875%, 03/31/99 13,010 13,241
7.500%, 11/15/01 3,200 3,527
--------
Total U.S. Treasury Obligations
(Cost $51,898,000) 55,467
--------
U.S. Government Agency Mortgage-Backed
Obligations -- 19.7%
FHLMC
6.000%, 03/15/08 1,805 1,794
6.900%, 04/25/20 1,000 1,026
6.500%, 03/01/24 3,752 3,713
7.000%, 06/01/24 3,107 3,136
7.500%, 06/01/24 3,558 3,651
FNMA
6.500%, 03/01/01 1,565 1,583
8.000%, 04/01/10 1,663 1,723
9.050%, 12/25/18 943 1,005
6.500%, 10/01/23 2,034 2,012
</TABLE>
<TABLE>
<CAPTION>
Face
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
GNMA
8.500%, 07/15/01 $ 78 $ 82
8.500%, 11/15/01 60 63
8.500%, 07/15/02 18 18
8.500%, 06/15/03 129 136
9.500%, 11/15/16 643 690
10.000%, 07/15/18 222 244
9.500%, 07/15/18 113 122
10.000%, 12/15/18 34 37
9.000%, 03/15/19 157 166
9.000%, 09/15/19 95 101
9.000%, 02/15/20 253 268
9.500%, 05/15/20 9 10
8.000%, 06/15/23 928 967
8.000%, 08/15/24 1,972 2,055
9.500%, 01/15/25 284 305
--------
Total U.S. Agency Government Mortgage-Backed
Obligations
(Cost $23,530,000) 24,907
--------
Asset-Backed Securities -- 16.6%
American Express Master Trust
7.850%, 08/15/05 1,940 2,153
Banc One Credit Card Master
Trust
6.150%, 07/15/02 2,150 2,182
Discover Card Trust
6.800%, 06/16/00 1,655 1,701
First Chicago Master
Trust II (A)
6.050%, 01/15/99 2,150 2,151
MBNA America Credit Card
Trust (A)
6.190%, 12/15/00 2,465 2,471
NationsBank Credit Card Master
Trust
4.750%, 09/15/98 3,185 3,163
SPNB Home Equity Loans
7.850%, 05/15/98 18 18
Standard Credit Card Master
Trust
8.500%, 08/07/97 2,210 2,236
The Money Store Home Equity
Trust
5.750%, 10/15/22 2,431 2,376
6.650%, 01/15/16 2,520 2,553
--------
Total Asset-Backed Securities
(Cost $20,774,000) 21,004
--------
</TABLE>
31
<PAGE>
Statement of Net Assets
<TABLE>
<CAPTION>
Face Market
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
Corporate Obligations -- 17.0%
Auburn Hills Trust
12.000%, 05/01/20 $ 710 $ 1,115
ANZ Banking Group
6.250%, 02/01/04 2,370 2,364
Citicorp
8.630%, 12/01/02 2,275 2,591
CNA Financial
8.880%, 03/01/98 1,005 1,069
Italy Global Bond
6.000%, 09/27/03 1,200 1,189
Kansallis-Osake-Pankki
10.000%, 05/01/02 890 1,061
Korea Electric Power
7.750%, 04/01/13 1,225 1,305
L.M. Ericsson Telephone
7.750%, 04/16/97 2,105 2,160
Lehman Brothers Holding
5.750%, 02/15/98 2,080 2,072
Lincoln National
7.250%, 05/15/05 1,780 1,889
MBIA
9.380%, 02/15/11 905 1,144
Salomon Brothers
7.430%, 06/24/99 1,685 1,725
7.130%, 08/01/99 670 680
Quebec Province
7.500%, 07/15/23 1,135 1,195
--------
Total Corporate Obligations
(Cost $20,964,000) 21,559
--------
U.S. Government Agency Obligations -- 0.9%
FHLB
7.260%, 09/06/01 1,025 1,103
--------
Total U.S. Government Agency Obligations
(Cost $1,023,000) 1,103
--------
</TABLE>
<TABLE>
<CAPTION>
Face Market
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
Repurchase Agreement -- 0.6%
Lehman Brothers
5.90%, dated 12/29/95, matures
01/02/96, repurchase price
$687,000 (collateralized by
U.S. Treasury Note, par value
$705,000, 5.125%, 11/30/98,
market value: $705,000) $ 686 $ 686
--------
Total Repurchase Agreement
(Cost $686,000) 686
--------
Total Investments -- 98.8%
(Cost $118,875,000) 124,726
--------
Other Assets and Liabilities -- 1.2%
Other Assets and Liabilities, Net 1,483
--------
NET ASSETS:
Portfolio shares of the Trust Class
(unlimited authorization -- no
par value) based on 12,165,991
outstanding shares of beneficial
interest 123,915
Portfolio shares of the Investor Class
(unlimited authorization -- no par
value) based on 62,467 outstanding
shares of beneficial interest 640
Undistributed net investment income 1
Accumulated net realized loss on investments (4,198)
Net unrealized appreciation on investments 5,851
--------
Total Net Assets-- 100.0% $126,209
========
Net Asset Value, Offering, and Redemption
Price Per Share -- Trust Class $10.32
========
Net Asset Value, and Redemption
Price Per Share-- Investor Class $10.35
========
Maximum Offering Price Per Share -- Investor
Class ($10.35 / 95.5%) $10.84
========
<FN>
- --------------------------------------------------------------------------------
(A) Variable rate instrument. The rate reflected on the Statement of Net Assets
is the rate in effect on December 31, 1995.
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National
Mortgage Association
GNMA -- Government National Mortgage Association
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
32
<PAGE>
DECEMBER 31, 1995
Statement of Net Assets (LOGO)
INTERMEDIATE GOVERNMENT FIXED INCOME FUND
[GRAPHIC OMITTED]
A pie chart depicting the percent of total portfolio investments for the
following investment classifications:
Intermediate Government Fixed Income Fund
U.S. Government Agency Obligations 53%
Repurchase Agreements 1%
U.S. Treasury Obligations 42%
U.S. Government Agency Mortgage-Backed Obligations 4%
% of Total Portfolio Investments
<TABLE>
<CAPTION>
Face Market
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
U.S. Government Agency Obligations -- 52.9%
FFCB
6.640%, 05/18/98 $ 2,000 2,007
8.650%, 10/01/99 1,650 1,828
FHLB
6.530%, 07/11/97 2,500 2,544
5.190%, 09/30/98 5,000 4,972
6.170%, 03/08/01 1,500 1,539
5.770%, 02/03/04 1,100 1,098
6.290%, 06/09/05 1,000 1,031
FHLMC
6.780%, 08/18/05 1,500 1,598
6.430%, 09/19/05 4,000 4,168
Financial Assistance
9.380%, 07/21/03 4,000 4,875
FNMA
8.800%, 07/25/97 2,065 2,170
5.650%, 10/20/97 5,025 5,055
8.450%, 07/12/99 5,000 5,459
</TABLE>
<TABLE>
<CAPTION>
Face Market
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
IBRD
8.750%, 03/01/97 $ 2,000 $ 2,077
--------
Total U.S. Government Agency Obligations
(Cost $39,789,000) 40,421
--------
U.S. Treasury Obligations -- 41.2%
U.S. Treasury Notes
6.380%, 06/30/97 9,250 9,405
5.750%, 09/30/97 5,000 5,045
8.880%, 02/15/99 4,500 4,961
6.250%, 05/31/00 5,000 5,169
U.S. Treasury Bond
11.880%, 11/15/03 1,000 1,398
10.750%, 08/15/05 4,000 5,499
--------
Total U.S. Treasury Obligations
(Cost $31,178,000) 31,477
--------
U.S. Government Agency Mortgage-Backed
Obligations -- 4.3%
FHLMC CMO
7.250%, 02/15/19 2,330 2,341
GNMA
9.500%, 11/15/16 108 116
Veterans Affairs
7.750%, 02/15/97 804 810
--------
Total U.S. Government Agency Mortgage-Backed
Obligations
(Cost $3,269,000) 3,267
--------
Repurchase Agreement -- 0.8%
JP Morgan
5.83%, dated 12/29/95, matures
01/02/96, repurchase price
$661,000 (collateralized by
GNMA ARM, par value $725,000,
6.00%, 03/20/24, market
value: $676,000) 661 661
--------
Total Repurchase Agreements
(Cost $661,000) 661
--------
Total Investments -- 99.2%
(Cost $74,897,000) 75,826
--------
Other Assets and Liabilities -- 0.8%
Other Assets and Liabilities, Net 586
--------
</TABLE>
33
<PAGE>
Statement of Net Assets
<TABLE>
<CAPTION>
Description Value (000)
========================================================
<S> <C>
Net Assets:
Portfolio shares of the Trust Class
(unlimited authorization -- no par
value) based on 7,304,680 outstanding
shares of beneficial interest $75,173
Portfolio shares of the Investor Class
(unlimited authorization -- no par value)
based on 293,228 outstanding shares of
beneficial interest 2,763
Distributions in excess of net investment
income (3)
Accumulated net realized loss on investments (2,450)
Net unrealized appreciation on investments 929
-------
Total Net Assets-- 100.0% $76,412
=======
Net Asset Value, Offering, and Redemption
Price Per Share -- Trust Class $10.06
=======
Net Asset Value and Redemption Price
Per Share -- Investor Class $10.05
=======
Maximum Offering Price Per Share -- Investor
Class ($10.05 / 95.5%) $10.52
=======
<FN>
- --------------------------------------------------------------------------------
ARM -- Adjustable Rate Mortgage
CMO -- Collaterallized Mortgage Obligation
FFCB-- Federal Farm Credit Bank
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
GNMA --Government National Mortgage Association
IBRD -- International Bank of Reconstruction and Development
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
34
<PAGE>
DECEMBER 31, 1995
Statement of Net Assets (LOGO)
TAX-EXEMPT FIXED INCOME FUND
[GRAPHIC OMITTED]
A pie chart depicting the percent of total portfolio investments for the
following investment classifications:
Tax-Exempt Fixed Income Fund
Municipal Bonds 93%
Cash Equivalents 7%
% of Total Portfolio Investments
<TABLE>
<CAPTION>
Face Market
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
Municipal Bonds -- 91.6%
Arkansas -- 2.1%
Jefferson County, Pollution
Control Revenue, Arkansas
Power & Light Company GO
(AMBAC)
6.300%, 06/01/18 $ 1,000 $ 1,089
--------
Florida -- 2.9%
State Department of
Transportation GO
5.800%, 07/01/21 1,450 1,483
--------
Illinois -- 13.0%
Development Finance Authority,
Catholic Charities Housing
Development RB
5.500%, 01/01/05 3,000 3,015
Development Finance Authority,
School District #U-46
Project RB
5.800%, 01/01/11(A) 2,000 2,103
State GO (FGIC)
5.750%, 07/01/20 1,500 1,524
--------
6,642
--------
</TABLE>
<TABLE>
<CAPTION>
Face Market
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
Kentucky -- 4.0%
State Turnpike Authority of
Economic Development RB
(AMBAC)
5.630%, 07/01/15 $ 2,000 $ 2,045
--------
Lousiana -- 3.0%
East Baton Rouge Parish,
Sales & Use Tax RB (FGIC)
5.900%, 02/01/20 1,500 1,560
--------
Michigan -- 2.3%
Marysville, Public School
District GO (MBIA)
5.750%, 05/01/19 1,175 1,200
--------
Mississippi -- 10.4%
Harrison County, Wastewater
Treatment Facilities RB
(FGIC)
5.880%, 02/01/25 2,500 2,581
State Hospital Equipment &
Facilities Authority, Baptist
Medical Center RB (MBIA)
6.500%, 05/01/10 2,500 2,760
--------
5,341
--------
Missouri -- 4.5%
State Health & Educational
Facilities Authority, BJC
Health Systems Project
Ser A RB
6.750%, 05/15/10 2,000 2,285
--------
Nevada -- 4.1%
Clark County, Refunding &
Transit Improvement RB (MBIA)
6.200%, 06/01/19 2,000 2,095
--------
New York -- 8.8%
Battery Park City Authority
Ser A RB
5.000%, 11/01/08 2,500 2,419
State Highway & Bridge
Improvement Fund RB (MBIA)
5.600%, 04/01/10 2,000 2,070
--------
4,489
--------
Oklahoma -- 2.0%
Tulsa, Industrial Authority
Hospital, St. Johns Medical
Center Project RB
6.250%, 02/15/17 1,000 1,041
--------
</TABLE>
35
<PAGE>
Statement of Net Assets
<TABLE>
<CAPTION>
Face Market
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
Pennsylvania -- 7.0%
Philadelphia Water &
Wastewater RB (MBIA)
5.750%, 06/15/13 $ 2,000 $ 2,052
Pittsburgh Water & Sewer
Authority RB (FGIC)
5.600%, 09/01/22 1,500 1,511
--------
3,563
--------
Tennessee -- 2.7%
Shelby County GO
5.600%, 04/01/10 1,350 1,394
--------
Texas -- 14.4%
Lower Colorado River Authority
RB (MBIA)
5.250%, 01/01/15 2,000 1,977
San Antonio, Electric & Gas
Company Refunding RB
5.000%, 02/01/12 2,250 2,219
Victoria County Hospital
RB (AMBAC)
6.250%, 01/01/16 1,000 1,059
Wylie Independent School
District GO
7.000%, 08/15/24 1,800 2,104
--------
7,359
--------
Virginia -- 8.3%
Virginia Beach GO
5.300%, 07/15/07 1,000 1,032
State Housing Development
Authority Ser H RB
6.450%, 01/01/12 3,000 3,202
--------
4,234
--------
Washington -- 2.1%
State Public Power Supply
System, Nuclear Project #1
Refinancing RB
7.000%, 07/01/04 1,000 1,089
--------
Total Municipal Bonds
(Cost $44,587,000) 46,909
--------
</TABLE>
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
========================================================
<S> <C> <C>
Cash Equivalents -- 7.1%
SEI Tax Exempt Trust
Institutional Tax Free
Portfolio
4.200%, 01/08/96 $ 1,671 $ 1,671
Dreyfus Tax Exempt Cash
Management Fund
4.430%, 01/08/96 1,952 1,952
--------
Total Cash Equivalents
(Cost $3,623,000) 3,623
--------
Total Investments -- 98.7%
(Cost $48,210,000) 50,532
--------
Other Assets and Liabilities -- 1.3%
Other Assets and Liabilities, Net 678
--------
NET ASSETS:
Portfolio shares of the Trust Class
(unlimited authorization -- no par value)
based on 4,909,030 outstanding shares of
beneficial interest 50,305
Portfolio shares of the Investor Class
(unlimited authorization -- no par value)
based on 111,130 outstanding shares of
beneficial interest 1,109
Distributions in excess of net investment
income (1)
Accumulated net realized loss on investments (2,525)
Net unrealized appreciation on investments 2,322
-------
Total Net Assets-- 100.0% $51,210
=======
Net Asset Value, Offering, and Redemption
Price Per Share -- Trust Class $10.20
=======
Net Asset Value and Redemption Price
Per Share -- Investor Class $10.18
=======
Maximum Offering Price Per Share -- Investor
Class ($10.18 / 95.5%) $10.66
=======
<FN>
- --------------------------------------------------------------------------------
(A) Securities are held in connection with a letter of credit or other credit
support.
GO -- General Obligation
RB -- Revenue Bond
Ser -- Series
The following organizations have provided underlying credit support for certain
securities as defined in the Statement of Net Assets:
AMBAC -- American Municipal Bond Assurance Company
FGIC -- Federal Guaranty Insurance Corporation
MBIA -- Municipal Bond Insurance Association
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
36
<PAGE>
DECEMBER 31, 1995
Schedule of Investments (LOGO)
GLOBAL FIXED INCOME FUND
[GRAPHIC OMITTED]
A pie chart depicting the percent of total portfolio investments for the
following investment classifications:
Global Fixed Income Fund
Germany 19%
Italy 5%
Japan 16%
Spain 11%
Sweden 5%
United Kingdom 13%
Other 9%
Denmark 5%
Canada 5%
France 12%
% of Total Portfolio Investments
<TABLE>
<CAPTION>
Face Market
Description Amount (000)(1) Value (000)
========================================================
<S> <C> <C>
Foreign Bonds -- 84.9%
Australia -- 3.3%
Australian Government
10.000%, 10/15/07 700 $ 587
--------
Canada -- 4.7%
Government of Canada
8.750%, 12/01/05 1,000 818
--------
Denmark -- 4.6%
Kingdom of Denmark
7.000%, 12/15/04 4,500 808
--------
European Currency Unit -- 4.0%
Credit Foncier
8.375%, 03/17/04 530 700
--------
France -- 10.0%
BTAN French Treasury Bill
4.500%, 05/12/96 4,300 878
Societe Nationale des Chemin
8.875%, 08/11/23 3,800 876
--------
1,754
--------
</TABLE>
<TABLE>
<CAPTION>
Face Market
Description Amount (000)(1) Value (000)
========================================================
<S> <C> <C>
Germany -- 16.5%
Federal Republic of Germany
8.375%, 05/21/01 2,000 $ 1,599
6.250%, 01/04/24 2,000 1,300
--------
2,899
--------
Italy -- 4.1%
Republic of Italy
8.500%, 04/01/99 1,200,000 726
--------
Japan -- 13.5%
Austrian Republic Bond
4.500%, 09/28/05 70,000 755
Export-Import Bank
2.875%, 07/28/05 40,000 379
Government of Japan
4.200%, 09/21/15 45,000 475
World Bank
4.500%, 06/20/00 70,000 754
--------
2,363
--------
Spain -- 9.0%
Kingdom of Spain
7.400%, 07/30/99 100,000 780
8.300%, 12/15/98 100,000 807
--------
1,587
--------
Sweden -- 4.4%
Kingdom of Sweden
10.750%, 01/23/97 5,000 773
--------
United Kingdom -- 10.8%
United Kingdom Treasury
6.750%, 11/26/04 750 1,115
7.000%, 11/06/01 500 777
--------
1,892
--------
Total Foreign Bonds
(Cost $13,959,000) 14,907
--------
Total Investments -- 84.9% of Net Assets
(Cost $13,959,000) $ 14,907
========
<FN>
- --------------------------------------------------------------------------------
(1) In local currency.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
37
<PAGE>
Schedule of Investments
BALANCED FUND
[GRAPHIC OMITTED]
A pie chart depicting the percent of total portfolio investments for the
following investment classifications:
Balanced Fund
Fixed Income Securities 30%
Cash equivalents 1%
Domestic Common Stocks 51%
Foreign Common Stocks 18%
% of Total Portfolio Investments
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
========================================================
<S> <C> <C>
Domestic Common Stock -- 47.0%
Basic Industry -- 4.6%
Avery Dennison 9,400 $ 471
E.I. DuPont de Nemours 3,200 224
Phelps Dodge 5,300 330
PPG Industries 9,700 444
USX-U.S. Steel Group 6,400 197
Weyerhaeuser 7,700 333
Witco Chemical 15,500 453
-------
2,452
-------
Capital Goods -- 3.6%
Boeing 2,400 188
Browning-Ferris Industries 4,600 136
General Electric 9,700 698
Keystone International 12,900 258
Minnesota Mining & Manufacturing 2,900 192
National Service Industries 14,800 479
-------
1,951
-------
</TABLE>
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
========================================================
<S> <C> <C>
Consumer Durables -- 2.1%
Ford Motor 17,700 $ 513
WD-40 8,500 349
Whirlpool 4,700 250
-------
1,112
-------
Consumer Non-Durables -- 8.8%
Bristol-Myers Squibb 5,200 447
Clorox 6,300 451
Coca-Cola 7,100 527
Columbia/HCA Healthcare 4,000 203
Flowers Industries 24,500 297
H.J. Heinz 1,000 33
Johnson & Johnson 3,800 325
Kimberly-Clark 2,300 190
Merck 6,800 447
Pepsico 4,700 263
Philip Morris 5,900 534
Procter & Gamble 4,000 332
UST 13,000 434
VF 5,000 264
-------
4,747
-------
Consumer Services -- 5.0%
Deluxe 16,900 490
Dun & Bradstreet 6,800 440
Fleming Companies 17,700 365
Gannett 3,200 196
H & R Block 5,600 227
J.C. Penney 5,600 267
McDonald's 4,700 212
Wal-Mart Stores 14,300 320
Walt Disney 3,300 195
-------
2,712
-------
Energy -- 5.1%
Burlington Resources 5,100 200
Chevron 9,800 515
Consolidated Natural Gas 10,300 467
Exxon 7,100 569
Halliburton 3,800 192
Mobil 3,900 437
Nicor 13,800 380
-------
2,760
-------
</TABLE>
38
<PAGE>
DECEMBER 31, 1995
Schedule of Investments (LOGO)
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
========================================================
<S> <C> <C>
Financial -- 7.0%
American General 12,800 $ 446
Aon 9,200 459
Bankers Trust New York 6,700 445
Boatmen's Bancshares 6,500 266
First American Bank 5,700 253
Hartford Steam Boiler
Inspection & Insurance 8,900 445
KeyCorp 11,100 402
Mellon Bank 7,100 382
Merry Land & Investment 10,700 253
NationsBank 6,400 445
------
3,796
------
Technology -- 4.2%
AMP 5,300 203
Automatic Data Processing 2,700 200
Hewlett Packard 3,000 251
Intel 5,600 318
IBM 3,900 358
Modern Controls 10,200 111
Motorola 3,900 222
Raytheon 4,100 194
Texas Instruments 4,200 217
Xerox 1,400 192
------
2,266
------
Transportation -- 0.4%
Norfolk Southern 2,400 191
------
Utilities -- 6.2%
A T & T 9,600 622
Ameritech 7,600 448
Bell Atlantic 3,800 254
Boston Edison 15,300 451
Central & South West 15,900 443
GTE 10,300 453
US West 5,100 182
Utilicorp United 16,400 482
------
3,335
------
Total Domestic Common Stock 25,322
------
</TABLE>
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
========================================================
<S> <C> <C>
Foreign Common Stock -- 16.4%
Basic Industry -- 1.3%
Akzo N V 2,900 $ 168
Broken Hill ADR 3,000 170
Fletcher Challange Limited ADR 7,300 169
PT Tri Polyta Indonesia ADR* 7,800 107
Rhone-Poulenc S.A. ADR* 4,300 92
-------
706
-------
Capital Goods -- 1.9%
ASEA AB ADR 1,800 174
Empresas ICA S.A. ADR 4,900 50
Hanson PLC ADR 11,900 182
Kubota ADR 400 51
Madeco S.A. ADR 5,700 154
Maderas y Sinteticos S.A. ADR 7,500 146
Norsk Hydro A.S. ADR 4,200 176
Pacific Dunlop ADR* 11,800 114
-------
1,047
-------
Consumer Durables -- 1.0%
Daimler Benz ADR 4,300 219
Nissan Motor ADR* 11,100 169
Sony ADR 2,800 172
-------
560
-------
Consumer Non-Durables -- 3.9%
Bass PLC ADR 7,900 176
Buenos Aires Embotellado* 4,500 93
Cadbury Schweppes PLC ADR 5,300 176
Ciba-Geigy AG ADR* 3,900 172
Fuji Photo Film ADR 2,900 169
Hafslund Nycomed, Cl B ADR 5,000 131
Kirin Brewery ADR 1,500 179
Nestle SA ADR 4,000 221
Novo-Nordisk A/S ADR 5,100 174
Panamerican Beverage, Cl A 4,000 128
Roche Holdings Limited ADR* 2,700 214
Unilever NV 1,900 267
-------
2,100
-------
</TABLE>
39
<PAGE>
Schedule of Investments
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
========================================================
<S> <C> <C>
Consumer Services -- 1.5%
Coles Myer Limited ADR 4,000 $ 99
Grupo Televisa S.A. ADR 5,300 119
Ito Yokado ADR 900 222
Koninklijke Ahold NV ADR* 4,100 169
News Corporation ADR 8,400 180
-------
789
-------
Energy -- 1.8%
Elf Aquitaine ADR 4,900 180
Repsol 5,500 181
Royal Dutch Petroleum ADR 2,100 296
Schlumberger 2,400 166
YPF Sociedad Anonima ADR 7,800 169
-------
992
-------
Financial -- 1.2%
Aegon N.V. ADR* 3,800 167
Dresdner Bank 5,700 149
National Australia Bank 3,000 136
Tokio Marine & Fire Insurance 2,600 172
-------
624
-------
Technology -- 2.1%
Alcatel Alsthom ADR* 9,900 173
Canon ADR 1,900 174
Hitachi ADR 2,100 211
Kyocera ADR 1,100 164
L.M. Ericsson Telephone ADR 8,800 172
Matsushita Electric Industrial
ADR 1,300 214
-------
1,108
-------
Transportation -- 0.4%
Canadian Pacific 10,000 181
-------
Utilities -- 1.3%
Cable & Wireless PLC ADR 8,100 171
Enersis SA ADR 3,000 86
Hong Kong Telecom ADR 8,100 144
Telefonica de Espana ADR 4,300 180
Telefonos de Mexico SA ADR 3,700 118
-------
699
-------
Total Foreign Common Stock 8,806
-------
Total Common Stock
(Cost $29,128,000) 34,128
-------
</TABLE>
<TABLE>
<CAPTION>
Face Market
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
U.S. Treasury Obligations -- 11.1%
U.S. Treasury Bonds
10.750%, 02/15/03 $ 250 $ 326
10.750%, 08/15/05 500 687
7.250%, 05/15/16 2,250 2,568
U.S. Treasury Notes
6.380%, 06/30/97 1,200 1,220
8.880%, 02/15/99 450 496
5.880%, 03/31/99 250 255
6.250%, 08/31/00 400 414
-------
Total U.S. Treasury Obligations
(Cost $5,777,000) 5,966
-------
Corporate Obligations -- 4.3%
ANZ Banking Group
6.250%, 02/01/04 165 165
Citicorp
8.630%, 12/01/02 260 296
CNA Financial
8.880%, 03/01/98 265 282
Ford Motor Credit
6.380%, 10/06/00 350 355
Italy Global Bond
6.000%, 09/27/03 200 198
Kansallis-Osake
10.000%, 05/01/02 220 263
Korea Electric Power Korella
7.750%, 04/01/13 200 213
Lehman Brothers Holding
5.750%, 02/15/98 300 299
Lincoln National
7.250%, 05/15/05 250 265
-------
Total Corporate Obligations
(Cost $2,301,000) 2,336
-------
U.S. Government Agency Obligations -- 7.6%
FHLB
6.530%, 09/02/97 500 510
7.260%, 09/06/01 295 317
FHLMC
6.780%, 08/18/05 850 905
7.610%, 09/01/04 200 206
</TABLE>
40
<PAGE>
DECEMBER 31, 1995
Schedule of Investments (LOGO)
<TABLE>
<CAPTION>
Face Market
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
U.S. Government Agency Obligations (continued)
FNMA
5.940%, 01/29/98 $ 500 $ 502
6.250%, 06/16/00 500 513
8.350%, 11/10/99 300 329
5.650%, 10/20/97 100 101
Private Export Funding
5.750%, 04/30/98 500 503
Private Export Funding
7.300%, 01/31/02 200 216
-------
Total U.S. Government Agency
Obligations
(Cost $3,955,000) 4,102
-------
Asset-Backed Securities -- 4.1%
American Express Master Trust
7.850%, 08/15/05 300 333
First Chicago Master Trust II
6.050%, 01/15/99 1,000 1,000
NationsBank Credit Card Master
Trust
4.750%, 09/15/98 300 298
The Money Store Home Equity
Trust
6.650%, 01/15/16 325 329
5.750%, 10/15/22 250 245
-------
Total Asset-Backed Securities
(Cost $2,173,000) 2,205
-------
U.S. Government Agency Mortgage-Backed
Obligations -- 0.4%
FNMA REMIC
9.050%, 12/25/18 47 50
GNMA
8.000%, 08/15/25 150 156
9.500%, 05/15/20 28 30
-------
Total U.S. Government Agency
Mortgage-Backed Obligations
(Cost $232,000) 236
-------
</TABLE>
<TABLE>
<CAPTION>
Face Market
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
Repurchase Agreement -- 0.3%
Lehman Brothers
5.90%, dated 12/29/95, matures
01/02/96, repurchase price
$138,000 (collateralized by
FHLMC STRIP, par value $490,000,
0.00%, 02/01/24, market
value: $141,000) $ 137 $ 137
-------
Total Repurchase Agreement
(Cost $137,000) 137
-------
Total Investments -- 91.2% of Net Assets
(Cost $43,703,000) $49,110
=======
<FN>
- --------------------------------------------------------------------------------
* Non-income producing security.
ADR -- American Depository Receipt
Cl -- Class
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
GNMA -- Government National Mortgage Association
PLC -- Public Limited Company
REMIC -- Real Estate Mortgage Investment Credit
STRIP -- Separate Trading of Registered Interest and Principal of Securities.
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
41
<PAGE>
Statement of Net Assets
VALUE FUND
[CHART OMITTED]
A pie chart depicting the percent of total portfolio investments for the
following investment classifications:
Value Fund
Consumer Durables 4%
Consumer Non-Durables 18%
Consumer Services 10%
Energy 11%
Financial 15%
Technology 9%
Transportation 1%
Utilities 13%
Repurchase Agreements 2%
Basic Industry 9%
Capital Goods 8%
% of Total Portfolio Investments
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
========================================================
<S> <C> <C>
Common Stock -- 96.7%
Basic Industry -- 9.4%
Avery Dennison 46,700 $ 2,341
E.I. DuPont de Nemours 16,300 1,139
Phelps Dodge 26,100 1,625
PPG Industries 50,600 2,315
USX-U.S. Steel Group 31,500 968
Weyerhaeuser 38,400 1,661
Witco Chemical 81,600 2,387
--------
12,436
--------
Capital Goods -- 7.4%
Boeing 12,600 987
Browning-Ferris Industries 22,500 664
General Electric 48,200 3,470
Keystone International 70,200 1,404
Minnesota Mining &
Manufacturing 15,300 1,014
National Service Industries 71,500 2,315
--------
9,854
--------
</TABLE>
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
========================================================
<S> <C> <C>
Consumer Durables -- 4.3%
Ford Motor 93,300 $ 2,706
WD-40 41,500 1,701
Whirlpool 23,900 1,273
--------
5,680
--------
Consumer Non-Durables -- 18.2%
Bristol-Myers Squibb 28,300 2,430
Clorox 31,600 2,263
Coca-Cola 36,100 2,680
Columbia/HCA Healthcare 19,600 995
Flowers Industries 127,600 1,547
H.J. Heinz 4,800 159
Johnson & Johnson 19,000 1,627
Kimberly-Clark 12,200 1,009
Merck 36,100 2,374
Pepsico 23,500 1,313
Philip Morris 29,200 2,643
Procter & Gamble 20,300 1,685
UST 64,500 2,153
VF 25,200 1,329
--------
24,207
--------
Consumer Services -- 10.3%
Deluxe 87,300 2,532
Dun & Bradstreet 35,500 2,298
Fleming 87,900 1,813
Gannett 16,400 1,006
H & R Block 28,000 1,134
J.C. Penney 27,800 1,324
McDonald's 22,400 1,011
Wal-Mart Stores 71,900 1,609
Walt Disney 16,200 956
--------
13,683
--------
Energy -- 10.5%
Burlington Resources 24,200 950
Chevron 47,500 2,494
Consolidated Natural Gas 50,900 2,310
Exxon 35,900 2,876
Halliburton 19,700 997
Mobil 20,800 2,330
Nicor 71,900 1,977
--------
13,934
--------
</TABLE>
42
<PAGE>
DECEMBER 31, 1995
Statement of Net Assets (LOGO)
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
========================================================
<S> <C> <C>
Financial -- 14.7%
American General 67,700 $ 2,361
Aon 45,600 2,274
Bankers Trust New York 33,200 2,208
Boatmen's Bancshares 32,300 1,320
First of America Bank 30,800 1,367
Hartford Steam Boiler
Inspection & Insurance 46,500 2,325
KeyCorp 54,900 1,990
Mellon Bank 37,000 1,989
Merry Land & Investment 55,500 1,311
NationsBank 32,800 2,284
--------
19,429
--------
Technology -- 8.4%
AMP 26,200 1,005
Automatic Data Processing 13,300 988
Hewlett Packard 15,000 1,256
IBM 18,700 1,716
Intel 26,500 1,504
Modern Controls 50,300 547
Motorola 19,500 1,111
Raytheon 21,300 1,006
Texas Instruments 20,600 1,066
Xerox 6,500 891
--------
11,090
--------
Transportation -- 0.7%
Norfolk Southern 12,000 953
--------
Utitilites -- 12.8%
A T & T 47,000 3,043
Ameritech 38,600 2,278
Bell Atlantic 19,400 1,297
Boston Edison 80,200 2,366
Central & South West 83,300 2,322
GTE 54,100 2,380
US West 25,000 894
Utilicorp United 83,600 2,456
--------
17,036
--------
Total Common Stock
(Cost $111,959,000) $128,302
--------
</TABLE>
<TABLE>
<CAPTION>
Face Market
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
Repurchase Agreement -- 2.3%
Lehman Brothers
5.90%, dated 12/29/95, matures
01/02/96, repurchase price
$3,100,000 (collateralized by
U.S. Treasury Note, par value
$3,165,000, 5.125%, 11/30/98,
market value: $3,163,000) $3,098 $ 3,098
--------
Total Repurchase Agreement
(Cost $3,098,000) 3,098
--------
Total Investments -- 99.0%
(Cost $115,057,000) 131,400
--------
Other Assets and Liabilities -- 1.0%
Other Assets and Liabilities, Net 1,340
--------
NET ASSETS:
Portfolio shares of the Trust Class
(unlimited authorization -- no par
value) based on 10,701,395 outstanding
shares of beneficial interest 113,900
Portfolio shares of the Investor Class
(unlimited authorization -- no par
value) based on 121,902 outstanding
shares of beneficial interest 1,297
Distribution in excess of net investment
income (1)
Accumulated net realized gain on investments 1,201
Net unrealized appreciation on investments 16,343
--------
Total Net Assets-- 100.0% $132,740
========
Net Asset Value, Offering, and Redemption
Price Per Share -- Trust Class $12.26
========
Net Asset Value and Redemption Price
Per Share -- Investor Class $12.28
========
Maximum Offering Price Per Share --
Investor Class ($12.28 / 95.5%) $12.86
========
</TABLE>
The accompanying notes are an integral part of the financial statements.
43
<PAGE>
Statement of Net Assets
GROWTH FUND
[CHART OMITTED]
A pie chart depicting the percent of total portfolio investments for the
following investment classifications:
Growth Fund
Repurchase Agreements 1%
Basic Industry 4%
capital Goods 8%
Consumer Non-Durables 17%
Consumer Services 7%
Energy 11%
Financial 22%
Technology 19%
Transportation 2%
Utilities 9%
% of Total Portfolio Investments
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
========================================================
<S> <C> <C>
Common Stock -- 98.8%
Basic Industry -- 3.9%
Dow Chemical 20,900 $ 1,471
Mead 15,900 831
Rayonier 25,300 844
--------
3,146
--------
Capital Goods -- 7.9%
Agco 41,250 2,104
Boeing 28,400 2,226
York International 44,000 2,068
--------
6,398
--------
Consumer Non-Durables -- 17.0%
American Home Products 11,600 1,125
Amgen* 23,400 1,389
Avon Products 35,300 2,661
Bristol-Myers Squibb 18,700 1,606
Colgate-Palmolive 19,500 1,370
H.J. Heinz 54,000 1,789
Philip Morris 13,800 1,249
U.S. Healthcare 56,100 2,608
--------
13,797
--------
</TABLE>
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
========================================================
<S> <C> <C>
Consumer Services -- 7.4%
Borders Group* 98,300 $ 1,819
Carnival 79,800 1,945
CUC International* 47,100 1,607
Intimate Brands* 40,000 600
--------
5,971
--------
Energy -- 11.0%
Amoco 26,300 1,890
Atlantic Richfield 16,200 1,794
Enron Oil & Gas 34,900 838
Phillips Petroleum 65,700 2,242
Texaco 27,000 2,120
--------
8,884
--------
Financial -- 22.0%
Advanta, Cl B 33,300 1,211
American General 47,500 1,657
Household International 22,500 1,330
KeyCorp 43,100 1,562
Lincoln National 25,800 1,387
MBIA 23,100 1,732
MGIC Investment 18,300 993
PMI Group 40,000 1,810
PNC Bank 48,000 1,548
Redwood Trust 50,000 913
St. Paul 48,400 2,692
Thornburg Mortgage Asset 60,200 948
--------
17,783
--------
Technology -- 18.6%
Altera* 29,800 1,483
Cisco Systems* 18,600 1,388
FTP Software* 41,100 1,192
Hewlett Packard 17,800 1,491
KLA Instruments* 31,400 818
IBM 8,700 798
Information Resources* 101,700 1,258
Intel 32,600 1,850
LSI Logic* 36,200 1,186
Microsoft* 18,800 1,650
Parametric Technology* 18,800 1,250
Xilinx* 23,000 701
--------
15,065
--------
</TABLE>
44
<PAGE>
DECEMBER 31, 1995
Statement of Net Assets (LOGO)
<TABLE>
<CAPTION>
Shares/Face Market
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
Transportation -- 2.0%
Illinois Central 41,500 $ 1,593
--------
Utilities -- 9.0%
Ameritech 42,800 2,525
PECO Energy 70,600 2,127
Western Resources 79,800 2,663
--------
7,315
--------
Total Common Stock
(Cost $69,992,000) 79,952
--------
Repurchase Agreement -- 1.1%
Lehman Brothers
5.90%, dated 12/29/95, matures
01/02/96, repurchase price
$845,000 (collateralized by FHLMC
STRIP, par value $2,215,000, 0.00%,
11/01/22, market value: $863,000) $844 844
--------
Total Repurchase Agreement
(Cost $844,000) 844
--------
Total Investments -- 99.9%
(Cost $70,836,000) 80,796
--------
Other Assets and Liabilities -- 0.1%
Other Assets and Liabilities, Net 101
--------
</TABLE>
<TABLE>
<CAPTION>
Description Value (000)
========================================================
<S> <C>
Net Assets:
Portfolio shares of the Trust Class
(unlimited authorization -- no par value)
based on 6,738,588 outstanding shares of
beneficial interest $ 67,282
Portfolio shares of the Investor Class
(unlimited authorization -- no par value)
based on 230,641 outstanding shares of
beneficial interest 2,439
Undistributed net investment income 1
Accumulated net realized gain on investments 1,215
Net unrealized appreciation on investments 9,960
--------
Total Net Assets-- 100.0% $ 80,897
========
Net Asset Value, Offering, and Redemption
Price Per Share -- Trust Class $11.61
========
Net Asset Value and Redemption Price
Per Share -- Investor Class $11.62
========
Maximum Offering Price Per Share --
Investor Class ($11.62 / 95.5%) $12.17
========
<FN>
- --------------------------------------------------------------------------------
* Non-Income Producing Security
FHLMC -- Federal Home Loan Mortgage Corporation
STRIP -- Separate Trading of Registered Interest and Principal of Securities.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
45
<PAGE>
Statement of Net Assets
INTERNATIONAL EQUITY FUND
[GRAPHIC OMITTED]
A pie chart depicting the percent of total portfolio investments for the
following investment classifications:
International Equity Fund
Japan 31%
United Kingdom 13%
France 8%
Germany 7%
Netherlands 6%
Switzerland 5%
Hong Kong 4%
Sweden 3%
Singapore 3%
Other 20%
% of Total Portfolio Investments
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
========================================================
<S> <C> <C>
Foreign Common Stocks -- 95.8%
Argentina -- 0.5%
YPF ADR 20,000 $ 433
------
Australia -- 2.0%
Broken Hill Proprietary 80,000 1,129
CRA 32,250 473
------
1,602
------
Austria -- 0.6%
Creditanstalt Bankverein "PS" 1,500 215
Vienna International Airport 4,500 299
------
514
------
Belgium -- 0.8%
Audiofina 5,500 298
Kredietbank 1,200 329
------
627
------
Brazil -- 1.1%
Aracruz Celulose ADR 35,000 271
Telebras ADR * 7,500 356
Usiminas ADR 35,000 280
------
907
------
</TABLE>
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
========================================================
<S> <C> <C>
Chile -- 1.0%
Endesa ADR 18,000 $ 409
Telecom Chile ADR 4,500 373
------
782
------
Denmark -- 1.2%
Sophus Berendsen, Cl B 5,000 563
Unidanmark, Cl A * 8,000 397
------
960
------
Finland -- 0.9%
Kymmene * 10,000 265
Nokia, Cl A * 12,000 472
------
737
------
France -- 7.7%
Alcatel Alsthom 5,798 501
Carrefour 1,000 607
Cie Generale des Eaux 8,169 817
Elf Aquitaine 16,108 1,189
Havas 4,673 371
L'Oreal 2,800 751
Rhone-Poulenc, Cl A 25,667 551
Saint-Gobain 5,114 567
Sanofi * 9,900 635
------
5,989
------
Germany -- 5.3%
Allianz 429 843
Bayer 3,000 797
Bayerische Motoren Werke 850 439
Beiersdorf 750 516
Deutsche Bank 20,000 951
Schering 10,000 665
------
4,211
------
Hong Kong -- 4.3%
China Light & Power 60,000 276
Hong Kong Telecommunications 200,000 357
HSBC Holdings 62,373 944
Hutchison Whampoa 110,000 670
Sun Hung Kai Properties 85,600 700
Swire Pacific, Cl A 58,000 450
------
3,397
------
</TABLE>
46
<PAGE>
DECEMBER 31, 1995
Statement of Net Assets (LOGO)
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
========================================================
<S> <C> <C>
Indonesia -- 0.3%
Multi Bintang 16,000 $ 225
------
Italy -- 2.6%
Assicurazioni Generali 25,000 606
Parmalat Finanziaria * 400,000 348
Rinascente 69,815 423
STET * 230,000 652
------
2,029
------
Japan -- 30.4%
Ajinomoto 65,000 724
Asahi Glass 40,000 446
Canon 50,000 906
East Japan Railway 140 681
Fanuc 12,500 541
Hitachi 90,000 907
Honda Motor 60,000 1,238
Ito Yokado 17,000 1,048
KAO 60,000 744
Kawasaki Steel 175,000 610
Kinki Nippon Tourist 32,000 226
Kirin Brewery 50,000 591
Kyocera 11,000 817
Matsushita Electric Industrial 50,000 814
Mitsubishi Bank 40,000 942
Mitsubishi Heavy Industries 150,000 1,196
New Oji Paper 70,000 633
Nippon Oil 70,000 440
Nippon Telegraph & Telephone 122 987
Nomura Securities 25,000 545
Secom 13,000 904
Sekisui House 70,000 895
Shiseido 45,000 536
Sony 22,000 1,319
Sumitomo Bank 41,000 870
Takeda Chemical Industries 45,000 741
Tokio Marine & Fire Insurance 90,000 1,177
Tokyo Broadcasting System 28,000 461
Tokyo Electric Power 13,100 350
Toray Industries 125,000 824
Toshiba 110,000 862
------
23,975
------
</TABLE>
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
========================================================
<S> <C> <C>
Malaysia -- 2.7%
Genting 40,000 $ 334
Malayan Banking 55,000 464
Sime Darby Malaysia 180,000 478
Telekom Malaysia 60,000 468
United Engineers-- F 65,000 415
-------
2,159
-------
Mexico -- 0.9%
Panamerican Beverage ADR 12,500 400
Telefonos de Mexico ADR 10,000 319
-------
719
-------
Netherlands -- 5.4%
Aegon 19,377 859
Ahold 14,420 590
Akzo 4,000 464
Heineken Holding, Cl A 4,125 677
Phillips Electronics 11,000 398
Unilever 5,000 704
Wolters Kluwer 6,566 622
-------
4,314
-------
Norway -- 0.7%
Saga Petroleum, Cl B 45,000 562
-------
Portugal -- 0.3%
Jeronimo Martins & Filho 3,800 211
-------
Singapore -- 2.9%
City Developments 65,000 473
Jardine Matheson 50,663 347
Keppel 55,000 490
Oversea-Chinese Banking-- F 40,500 507
Singapore International
Airlines-- F 50,000 467
-------
2,284
-------
Spain -- 2.0%
Banco Bilbao-Vizcaya 15,000 541
Centros Comerciales Pryca 20,000 420
Telefonica de Espana 47,000 651
-------
1,612
-------
</TABLE>
47
<PAGE>
Statement of Net Assets
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
========================================================
<S> <C> <C>
Sweden -- 2.9%
Asea, Cl B 9,000 $ 877
Astra, Cl A 22,000 879
Ericsson, Cl B 27,500 539
-------
2,295
-------
Switzerland -- 4.8%
Ciba-Geigy, Cl N 1,000 881
Holderbank, Cl I 615 472
Nestle, Cl N 700 775
Roche Holdings, Cl GS 90 713
Schweizerische Bankgesellschaft,
Cl I 900 977
-------
3,818
-------
Thailand -- 2.1%
Advanced Info Service-- F 20,000 354
Bangkok Bank-- F 43,000 523
Land and House-- F 25,000 411
Siam Cement-- F 7,000 388
-------
1,676
-------
United Kingdom -- 12.4%
Barclays Bank 76,236 875
BAT Industries 90,833 801
British Airport Authority 60,553 456
BOC Group 41,336 578
Cable & Wireless 81,819 585
Cadbury Schweppes 66,748 552
General Electric 144,425 796
Marks & Spencer 91,080 637
Pearson 80,816 783
Prudential 135,816 875
Shell Transport & Trading 90,000 1,191
SmithKline Beecham, Cl A 80,929 892
Tate & Lyle 106,606 781
-------
9,802
-------
Total Foreign Common Stocks
(Cost $65,269,000) 75,840
-------
Foreign Preferred Stocks -- 2.5%
Australia -- 0.7%
Newscorp 120,000 561
-------
</TABLE>
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
========================================================
<S> <C> <C>
Germany -- 1.8%
Krones 800 $ 324
RWE 2,500 698
Suedzucker 1,000 404
-------
1,426
-------
Total Foreign Preferred Stocks
(Cost $1,960,000) 1,987
-------
Total Investments -- 98.3%
(Cost $67,229,000) 77,827
-------
Other Assets and Liabilities -- 1.7%
Other Assets and Liabilities, Net 1,378
-------
Net Assets:
Portfolio shares of the Trust Class
(unlimited authorization -- no
par value) based on 5,325,237
outstanding shares of beneficial
interest 66,821
Portfolio shares of the Investor Class
(unlimited authorization -- no par
value) based on 116,130 outstanding
shares of beneficial interest 1,493
Distributions in excess of net investment
income (12)
Accumulated net realized gain on investments 304
Net unrealized appreciation on foreign
currency and translation of other assets
and liabilities denominated in foreign
currency 1
Net unrealized appreciation on investments 10,598
-------
Total Net Assets-- 100.0% $79,205
=======
Net Asset Value, Offering and Redemption
Price Per Share -- Trust Class $14.56
=======
Net Asset Value and Redemption Price
Per Share -- Investor Class $14.52
=======
Maximum Offering Price Per Share --
Investor Class ($14.52 / 95.5%) $15.20
=======
<FN>
- --------------------------------------------------------------------------------
* Non-Income Producing Security
ADR -- American Depository Receipt
Cl -- Class
F -- Foreign Registry Shares
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
48
<PAGE>
DECEMBER 31, 1995
Statement of Net Assets (LOGO)
SMALL CAP FUND
[CHART OMITTED]
A pie chart depicting the percent of total portfolio investments for the
following investment classifications:
Small Cap Fund
Repurchase Agreements 5%
Basic Industry 3%
Capital Goods 10%
Consumer Durables 2%
Consumer Non-Durables 19%
Consumer Services 13%
Energy 6%
Financial 17%
Technology 23%
Transportation 1%
Utilities 1%
% of Total Portfolio Investments
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
========================================================
<S> <C> <C>
Common Stock -- 95.1%
Basic Industry -- 3.2%
Fastenal 9,700 $ 410
Shorewood Packaging* 25,400 362
-------
772
-------
Capital Goods -- 10.1%
Agco 7,900 403
Gentex* 16,300 359
Juno Lighting 21,900 350
Kaydon 8,900 270
NN Ball and Roller 19,200 336
OEA* 13,100 391
Wolverine Tube* 9,700 364
-------
2,473
-------
Consumer Durables -- 2.4%
Sunbeam Oster 21,900 334
WD-40 6,300 258
-------
592
-------
</TABLE>
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
========================================================
<S> <C> <C>
Consumer Non-Durables -- 19.1%
American Medical Response* 15,900 $ 517
Fresenius* 14,200 282
Mid Atlantic Medical Services* 17,500 424
Nautica Enterprises* 13,050 571
Respironics* 26,400 554
Rotech Medical* 13,800 380
Smithfield Foods* 16,400 521
Sofamor/Danek Group* 21,500 610
Sybron International* 12,600 299
Watson Pharmaceuticals* 10,400 510
-------
4,668
-------
Consumer Services -- 12.6%
Applebee's International 25,200 573
Catalina Marketing* 8,000 502
Express Scripts, Cl A* 7,600 388
Grand Casinos* 16,950 394
Men's Wearhouse* 13,200 340
National Education* 69,000 561
Stop & Shop* 14,100 326
-------
3,084
-------
Energy -- 5.8%
Devon Energy 17,000 433
KN Energy 10,500 306
Pride Petroleum Services* 34,900 371
Wicor 9,300 300
-------
1,410
-------
Financial -- 17.1%
Associated Bancorp 8,125 333
Bell Bancorp* 9,600 343
California Federal Bank, Cl A* 23,000 362
Felcor Suite Hotels 8,800 244
Gainsco 27,195 310
Manufactured Home Communities 20,700 362
Mark Twain Bancshares 7,900 306
Mutual Risk Management 11,500 526
National Re Holdings 16,100 612
Quick & Reilly Group 13,725 281
River Forest Bancorp 19,200 490
-------
4,169
-------
</TABLE>
49
<PAGE>
Statement of Net Assets
<TABLE>
<CAPTION>
Shares/Face Market
Description Amount (000) Value (000)
========================================================
<S> <C> <C>
Technology -- 22.5%
Altera* 8,800 $ 438
Aspect Telecommunications* 10,400 348
FTP Software* 17,500 508
Hyperion Software* 17,600 374
KLA Instruments* 15,100 394
Lam Research* 5,300 242
Maxim Integrated Products* 17,400 670
Progress Software* 22,000 825
Sterling Software* 11,000 686
Tencor Instruments* 13,100 319
US Robotics* 4,400 386
Vicor* 15,200 304
-------
5,494
-------
Transportation -- 1.1%
Air Express International 11,100 255
-------
Utilities -- 1.2%
Southern California Water 13,900 281
-------
Total Common Stock
(Cost $19,757,000) 23,198
-------
Repurchase Agreement -- 5.4%
Prudential Securities
5.90%, dated 12/29/95, matures
01/02/96, repurchase price
$1,324,000 (collateralized by
U.S. Treasury Note, par value
$1,355,000, 5.125%, 11/30/98,
market value: $1,354,000) $1,324 1,324
-------
Total Repurchase Agreements
(Cost $1,324,000) 1,324
-------
</TABLE>
<TABLE>
<CAPTION>
Market
Description Value (000)
========================================================
<S> <C>
Total Investments -- 100.5%
(Cost $21,081,000) $24,522
-------
Other Assets and Liabilities -- (0.5%)
Other Assets and Liabilities, Net (125)
-------
Net Assets:
Portfolio shares of the Trust Class
(unlimited authorization -- no par value)
based on 1,914,355 outstanding shares of
beneficial interest 19,690
Portfolio shares of the Investor Class
(unlimited
authorization -- no par value) based on
44,346 outstanding shares of beneficial
interest 463
Undistributed net investment income 1
Accumulated net realized gain on investments 802
Net unrealized appreciation on investments 3,441
-------
Total Net Assets-- 100.0% $24,397
=======
Net Asset Value, Offering, and Redemption
Price Per Share -- Trust Class $12.46
=======
Net Asset Value and Redemption Price
Per Share -- Investor Class $12.46
=======
Maximum Offering Price Per Share -- Investor
Class ($12.46 / 95.5%) $13.05
=======
<FN>
- --------------------------------------------------------------------------------
* Non-Income Producing Security
Cl -- Class
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
50
<PAGE>
DECEMBER 31, 1995
Schedule of Investments (LOGO)
ASIAN TIGERS FUND
[CHART OMITTED]
A pie chart depicting the percent of total portfolio investments for the
following investment classifications:
Asian Tigers Fund
Hong Kong 37%
Indonesia 4%
Malaysia 17%
Philippines 3%
Singapore 16%
South Korea 4%
Taiwan 3%
Thailand 16%
% of Total Portfolio Investments
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
========================================================
<S> <C> <C>
Foreign Common Stocks -- 93.1%
Hong Kong -- 34.4%
Cheung Kong Holdings 105,000 $ 640
China Light & Power 82,000 378
Citic Pacific 122,000 417
Hang Seng Bank 48,000 430
Henderson Land Development* 40,000 241
Hong Kong & China Gas 153,600 247
Hong Kong Telecommunications 417,600 745
HSBC Holdings 92,000 1,392
Hutchison Whampoa 156,000 950
Hysan Development 121,000 320
Johnson Electric 109,000 195
National Mutual Asia* 350,000 317
New World Development 70,000 305
Shangri-La Asia 236,000 289
Sun Hung Kai Properties 82,000 671
Swire Pacific, Cl A 66,000 512
Television Broadcasts 18,000 64
Wheelock 52,000 89
-------
8,202
-------
</TABLE>
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
========================================================
<S> <C> <C>
Indonesia -- 4.1%
Bank Internasional
Indonesia-- F 62,000 $ 206
Hanjaya Mandala Sampoerna* 20,000 208
Indofood-- F 20,000 96
Indonesian Satellite ADR 2,400 88
Semen Gresik-- F* 55,000 154
Telekomunikasi-- F* 180,000 236
-------
988
-------
Malaysia -- 16.1%
DCB Holdings* 80,000 233
Genting 33,500 280
Land and General* 65,000 141
Malayan Banking 60,000 506
Malaysian International
Shipping-- F 92,000 241
Public Bank-- F 109,000 209
Resorts World 70,000 375
Sime Darby Malaysia 197,600 525
Sime UEP Properties 145,000 228
Telekom Malaysia 64,000 499
Tenaga 76,000 299
United Engineers-- F 48,000 306
-------
3,842
-------
Philippines -- 2.4%
Filinvest Land* 600,000 192
Manila Electric* 28,000 229
Philippine Long Distance
Telephone ADR 3,000 162
-------
583
-------
Singapore -- 15.3%
City Developments 87,600 638
DBS Land 90,000 304
Development Bank of
Singapore-- F 26,000 324
Fraser and Neave-- F 28,000 357
Hong Kong Land 77,000 142
Jardine Matheson 14,000 96
Keppel 42,000 374
Oversea-Chinese Banking-- F 63,000 789
Singapore International
Airlines-- F 33,000 308
Singapore Press-- F 18,400 325
-------
3,657
-------
</TABLE>
51
<PAGE>
Schedule of Investments
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
========================================================
<S> <C> <C>
South Korea -- 3.3%
Korea Fund 35,483 $ 781
-------
Taiwan -- 2.4%
Taiwan Fund 27,500 564
-------
Thailand -- 15.1%
Advanced Info Service-- F 30,000 527
Bangkok Bank-- F 57,000 693
Dhana Siam Finance &
Securities-- F 59,000 337
Industrial Finance of
Thailand* 110,000 374
Italian-Thai Development* 30,000 307
Land and House-- F 22,000 362
PTT Exploration* 40,000 419
Siam Cement-- F* 12,000 188
Thai Farmers Bank-- F 39,000 393
-------
3,600
-------
Total Foreign Common Stocks
(Cost $20,236,000) 22,217
-------
Total Investments -- 93.1%, of Net Assets
(Cost $20,236,000) $22,217
=======
<FN>
- --------------------------------------------------------------------------------
* Non-Income Producing Security
ADR -- American Depository Receipts
Cl -- Class
F -- Foreign Registry Shares
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
52
<PAGE>
DECEMBER 31, 1995
Notes
53
<PAGE>
Statement of Assets and Liabilities (000) (LOGO)
For the Year Ended December 31, 1995
<TABLE>
<CAPTION>
Global Fixed Balanced Asian
Income Fund Fund Tigers Fund
====================================================================================================================
<S> <C> <C> <C>
Assets:
Investments at market value (Cost $13,959, $43,703 and
$20,236, respectively) $ 14,907 $ 49,110 $ 22,217
Cash and foreign currency 3,765 -- 1,879
Receivable for investment securities sold -- 1,677 --
Receivable for capital shares sold 17 3,899 20
Other assets 452 339 80
-------- -------- --------
Total assets 19,141 55,025 24,196
-------- -------- --------
Liabilities:
Distribution payable 1,555 132 270
Payable for capital shares repurchased -- 1,015 --
Other liabilities 28 30 48
-------- -------- --------
Total liabilities 1,583 1,177 318
-------- -------- --------
Net assets:
Portfolio shares of the Trust Class (unlimited authorization -- no par value
based on 1,647,908, 4,642,722 and 2,214,706 outstanding shares of
beneficial
interest, respectively 16,640 43,855 21,404
Portfolio shares of the Investor Class (unlimited
authorization -- no par value) based on 11,864,
367,470 and 70,215 outstanding shares of beneficial
interest, respectively 126 3,705 681
Undistributed net investment income 218 -- --
Accumulated distributions in excess of net investment income -- -- (34)
Accumulated net realized gain (loss) on investments (392) 883 (154)
Accumulated net realized loss from foreign currency transactions (1) -- --
Net unrealized appreciation (depreciation) on foreign currency
and translation of other assets and liabilities denominated
in foreign currencies 19 (2) --
Net unrealized appreciation on investments 948 5,407 1,981
-------- -------- --------
Net Assets $ 17,558 $ 53,848 $ 23,878
======== ======== ========
Net Asset Value, Offering and Redemption PricePer Share -- Trust Class $ 10.58 $ 10.75 $ 10.45
======== ======== ========
Net Asset Value and Redemption Price Per Share -- Investor Class $ 10.56 $ 10.75 $ 10.44
======== ======== ========
Maximum Offering Price Per Share -- Investor Class (1) $ 11.06 $ 11.26 $ 10.93
======== ======== ========
<FN>
(1) The offering price is calculated by dividing the Net Asset Value by 1 minus
the maximum sales charge of 4.50%.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
54
<PAGE>
DECEMBER 31, 1995
Statement of Operations (000) (LOGO)
For the Year Ended December 31, 1995
<TABLE>
<CAPTION>
Treasury Government Money Tax-Exempt
Money Market Money Market Market Money Market
Fund Fund Fund Fund
===============================================================================================
<S> <C> <C> <C> <C>
Investment Income:
Interest $ 6,611 $ 11,042 $ 27,757 $ 7,189
-------- -------- -------- --------
Expenses:
Administration fees 176 283 705 278
Less administration fees waived -- -- (57) --
Investment advisory fees 413 377 1,646 653
Less investment advisory fees waived (184) -- (648) (290)
Custodian fees 16 25 63 20
Transfer agent fees 34 38 63 32
Professional fees 20 31 69 26
Registration & filing fees 9 14 21 34
Printing 3 4 4 5
Trustee 2 3 7 3
Insurance 4 6 16 5
Pricing 1 2 6 1
Distribution fees(1) 17 8 3 10
Amortization of deferred organization costs 3 3 3 3
Miscellaneous 18 1 3 1
-------- -------- -------- --------
Total Expenses 532 795 1,904 781
-------- -------- -------- --------
Net Investment Income 6,079 10,247 25,853 6,408
-------- -------- -------- --------
Net Realized Loss On Investments:
Net realized loss from security transaction -- -- -- (1)
-------- -------- -------- --------
Net Increase In Net Assets From Operations $ 6,079 $ 10,247 $ 25,853 $ 6,407
======== ======== ======== ========
<FN>
(1) All distribution fees are incurred at the Investor Class level.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
55
<PAGE>
Statement of Operations (000) (LOGO)
For the Year Ended December 31, 1995
<TABLE>
<CAPTION>
Intermediate
Government Tax-Exempt Global
Fixed Income Fixed Income Fixed Income Fixed Income
Fund Fund Fund Fund
===========================================================================================================
<S> <C> <C> <C> <C>
Investment Income:
Interest $ 7,601 $ 5,092 $ 2,926 $ 1,214
-------- -------- -------- --------
Expenses:
Administration fees 170 123 78 26
Less administration fees waived (11) (10) -- --
Investment advisory fees 677 492 314 140
Less investment advisory fees waived (100) (72) (65) --
Custodian fees 15 10 7 3
Transfer agent fees 33 32 30 27
Contribution by administrator -- -- -- (10)
Professional fees 19 12 7 2
Registration & filing fees 13 (3) (1) 1
Printing 2 -- -- --
Trustee fee 2 1 1 --
Insurance 3 3 2 --
Pricing 2 -- 1 --
Distribution fees(1) 1 7 3 --
Amortization of deferred organization costs 3 3 3 3
Miscellaneous 12 11 16 --
-------- -------- -------- --------
Total Expenses 841 609 396 192
-------- -------- -------- --------
Net Investment Income 6,760 4,483 2,530 1,022
-------- -------- -------- --------
Net Realized and Unrealized Gain On Investments:
Net realized gain from security transactions 1,117 345 318 269
Net realized gain from foreign currency transactions -- -- -- 751
Net change in unrealized appreciation on investments 10,277 5,923 4,825 1,202
Net change in unrealized appreciation on foreign
currency and translation of other assets and
liabilities in foreign currencies -- -- -- 18
-------- -------- -------- --------
Net Increase In Net Assets From Operations $ 18,154 $ 10,751 $ 7,673 $ 3,262
======== ======== ======== ========
<FN>
(1) All distribution fees are incurred at the Investor Class level.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
56
<PAGE>
DECEMBER 31, 1995
Statement of Operations (000) (LOGO)
For the Year Ended December 31, 1995
<TABLE>
<CAPTION>
International Asian
Balanced Value Growth Equity Small Cap Tigers
Fund Fund Fund Fund Fund Fund
=========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Investment Income:
Dividends $ 1,341 $ 3,617 $ 1,863 $ 1,210 $ 182 $ 571
Interest 1,681 446 184 241 81 80
Less foreign taxes withheld -- -- -- (107) -- (37)
-------- -------- -------- -------- -------- --------
Total investment income 3,022 4,063 2,047 1,344 263 614
-------- -------- -------- -------- -------- --------
Expenses:
Administration fees 97 148 128 97 31 32
Investment advisory fees 454 789 686 643 164 212
Less investment advisory fees waived -- -- -- -- (1) --
Custodian fees 7 13 11 84 3 56
Transfer agent fees 26 31 32 27 26 27
Contribution by administrator -- -- -- (2) -- (16)
Professional fees 10 18 12 16 2 3
Registration & filing fees (11) 19 (3) 14 (4) 2
Printing -- 5 1 4 -- 1
Trustee 1 1 1 1 -- --
Insurance 2 2 3 2 1 1
Pricing -- 2 1 4 -- 2
Distribution fees(1) 10 3 6 4 1 2
Amortization of deferred organization costs 3 3 3 3 3 3
Miscellaneous 1 1 -- -- -- --
-------- -------- -------- -------- -------- --------
Total Expenses 600 1,035 881 897 226 325
-------- -------- -------- -------- -------- --------
Net Investment Income 2,422 3,028 1,166 447 37 289
-------- -------- -------- -------- -------- --------
Net Realized and Unrealized Gain (Loss)
On Investments:
Net realized gain (loss) from
security transactions 3,350 3,456 8,079 1,107 2,502 (139)
Net realized loss from foreign
currency transactions (8) -- -- (116) -- (22)
Net change in unrealized appreciation on
investments 7,293 20,121 14,198 7,172 2,930 2,685
Net change in unrealized appreciation
(depreciation)
on foreign currency and translation of other
assets and liabilities in foreign currencies (2) -- -- -- -- 1
-------- -------- -------- -------- -------- --------
Net Increase In Net Assets From Operations $ 13,055 $ 26,605 $ 23,443 $ 8,610 $ 5,469 $ 2,814
======== ======== ======== ======== ======== ========
<FN>
(1) All distribution fees are incurred at the Investor Class level.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
57
<PAGE>
DECEMBER 31, 1995
Statement of Changes in Net Assets (000) (LOGO)
<TABLE>
<CAPTION>
Treasury
Money Market
Fund
============================================================
1995 1994
============================================================
<S> <C> <C>
Operations:
Net investment income $ 6,079 $ 4,009
Net realized loss from security
transactions -- --
-------- --------
Net increase in net assets
resulting from operations 6,079 4,009
-------- --------
Dividends distributed from:
Net investment income:
Trust Class (5,746) (3,936)
Investor Class (333) (73)
-------- --------
Total dividends distributed (6,079) (4,009)
-------- --------
Capital share transactions:
Trust Class:
Proceeds from shares issued 484,129 274,543
Shares issued in lieu of
cash distributions 5 3
Cost of shares repurchased (485,213) (271,487)
-------- --------
Increase (decrease) in net assets
derived from Trust Class
transactions (1,079) 3,059
-------- --------
Investor Class:
Proceeds from shares issued 33,385 11,461
Shares issued in lieu of
cash distributions 315 60
Cost of shares repurchased (29,000) (9,637)
-------- --------
Increase in net assets derived
from Investor Class transactions 4,700 1,884
-------- --------
Increase (decrease) in net assets
derived from capital share
transactions 3,621 4,943
-------- --------
Contribution of capital
from affiliate -- --
-------- --------
Net increase (decrease)
in net assets 3,621 4,943
-------- --------
Net Assets:
Beginning of year 114,785 109,842
-------- --------
End of year $118,406 $114,785
======== ========
Capital share transactions:
Trust Class:
Shares issued 484,129 274,543
Shares issued in lieu of
cash distributions 5 3
Shares repurchased (485,213)(271,487)
-------- --------
Total Trust Class transactions (1,079) 3,059
-------- --------
Investor Class:
Shares issued 33,385 11,461
Shares issued in lieu of
cash distributions 315 60
Shares repurchased (29,000) (9,637)
-------- --------
Total Investor Class transactions 4,700 1,884
-------- --------
Increase (decrease) in
capital shares 3,621 4,943
======== ========
</TABLE>
The accompanying notes are an integral part of the financial statements.
58
<PAGE>
DECEMBER 31, 1995
Statement of Changes in Net Assets (000) (LOGO)
<TABLE>
<CAPTION>
Government Tax-Exempt
Money Market Money Market Money Market
Fund Fund Fund
=================================================================================================================================
1995 1994 1995 1994 1995 1994
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income $ 10,247 $ 6,426 $ 25,853 $ 17,498 $ 6,408 $ 3,447
Net realized loss from security
transactions -- (702) -- (1,399) (1) --
--------- -------- ----------- ---------- --------- --------
Net increase in net assets
resulting from operations 10,247 5,724 25,853 16,099 6,407 3,447
--------- -------- ----------- ---------- --------- --------
Dividends distributed from:
Net investment income:
Trust Class (10,086) (6,340) (25,787) (17,487) (6,283) (3,391)
Investor Class (161) (86) (66) (11) (125) (56)
--------- -------- ----------- ---------- --------- --------
Total dividends distributed (10,247) (6,426) (25,853) (17,498) (6,408) (3,447)
--------- -------- ----------- ---------- --------- --------
Capital share transactions:
Trust Class:
Proceeds from shares issued 404,051 378,541 1,234,299 1,364,586 408,851 377,990
Shares issued in lieu of
cash distributions -- -- -- 1 -- --
Cost of shares repurchased (353,576) (380,800) (1,219,198)(1,271,110) (401,949) (332,946)
--------- -------- ----------- ---------- --------- --------
Increase (decrease) in net assets
derived from Trust Class
transactions 50,475 (2,259) 15,101 93,477 6,902 45,044
--------- -------- ----------- ---------- --------- --------
Investor Class:
Proceeds from shares issued 11,055 12,329 6,603 2,321 16,513 13,112
Shares issued in lieu of
cash distributions 157 81 62 9 124 48
Cost of shares repurchased (10,949) (11,485) (5,912) (1,844) (17,597) (10,350)
--------- -------- ----------- ---------- --------- --------
Increase in net assets derived
from Investor Class transactions 263 925 753 486 (960) 2,810
--------- -------- ----------- ---------- --------- --------
Increase (decrease) in net assets
derived from capital share
transactions 50,738 (1,334) 15,854 93,963 5,942 47,854
--------- -------- ----------- ---------- --------- --------
Contribution of capital
from affiliate -- 700 -- 1,400 -- --
--------- -------- ----------- ---------- --------- --------
Net increase (decrease)
in net assets 50,738 (1,336) 15,854 93,964 5,941 47,854
--------- -------- ----------- ---------- --------- --------
Net Assets:
Beginning of year 159,879 161,215 461,192 367,228 165,248 117,394
--------- -------- ----------- ---------- --------- --------
End of year $ 210,617 $ 159,879 $ 477,046 $ 461,192 $ 171,189 $ 165,248
========= ========= =========== ========== ========= ==========
Capital share transactions:
Trust Class:
Shares issued 404,051 378,541 1,234,299 1,364,586 408,851 377,990
Shares issued in lieu of
cash distributions -- -- -- 1 -- --
Shares repurchased (353,576) (380,800) (1,219,198) (1,271,110) (401,949) (332,946)
--------- -------- ----------- ---------- --------- --------
Total Trust Class transactions 50,475 (2,259) 15,101 93,477 6,902 45,044
--------- -------- ----------- ---------- --------- --------
Investor Class:
Shares issued 11,055 12,329 6,603 2,321 16,513 13,112
Shares issued in lieu of
cash distributions 157 81 62 9 124 48
Shares repurchased (10,949) (11,485) (5,912) (1,844) (17,597) (10,350)
--------- -------- ----------- ---------- --------- --------
Total Investor Class transactions 263 925 753 486 (960) 2,810
--------- -------- ----------- ---------- --------- --------
Increase (decrease) in
capital shares 50,738 (1,334) 15,854 93,963 5,942 47,854
========= ========= =========== ========== ========= ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
59
<PAGE>
DECEMBER 31, 1995
Statement of Changes in Net Assets (000) (LOGO)
<TABLE>
<CAPTION>
Fixed Intermediate Tax-Exempt Global
Income GovernmentFixed Fixed Income FixedIncome
Fund Income Fund Fund Fund
===================================================================================================
1995 1994 1995 1994 1995 1994 1995 1994
====================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income $ 6,760 $ 5,880 $ 4,483 $ 4,891 $ 2,530 $ 2,820 $1,022 $ 824
Net realized gain (loss)
from security and foreign
currency transactions 1,117 (5,590) 345 (2,678) 318 (2,840) 1,020 (670)
Net change in unrealized
appreciation (depreciation)
on investments and foreign
currency transactions 10,277 (4,970) 5,923 (5,192) 4,825 (3,429) 1,220 (435)
------- ------ -------- ------- ------- -------- -------- -------
Net increase (decrease) in
net assets resulting from
operations 18,154 (4,680) 10,751 (2,979) 7,673 (3,449) 3,262 (281)
------- ------ -------- ------- ------- -------- -------- -------
Dividends distributed from:
Net investment income:
Trust Class (6,740) (5,867) (4,360) (4,870) (2,491) (2,772) (1,582) (868)
Investor Class (29) (24) (151) (11) (54) (38) (10) (5)
Net realized gains:
Trust Class -- -- -- -- -- (196) -- (279)
Investor Class -- -- -- -- -- (3) -- (1)
------- ------ -------- ------- ------- -------- -------- -------
Total dividends
distributed (6,769) (5,891) (4,511) (4,881) (2,545) (3,009) (1,592) (1,153)
------- ------ -------- ------- ------- -------- -------- -------
Capital share transactions:
Trust Class:
Proceeds from shares issued 41,779 20,696 8,766 16,057 3,761 5,355 4,868 3,752
Shares issued in lieu of
cash distributions -- 2 -- -- -- -- -- --
Cost of shares repurchased (19,953)(48,770) (32,350)(22,029)(12,289) (12,555) (4,120) (3,791)
------- ------ -------- ------- ------- -------- -------- -------
Increase (decrease) in net
assets derived from Trust
Class transactions 21,826 (28,072) (23,584) (5,972) (8,528) (7,200) 748 (39)
------- ------ -------- ------- ------- -------- -------- -------
Investor Class:
Proceeds from shares issued 232 451 2,015 1,147 203 912 54 71
Shares issued in lieu of
cash distributions 25 19 140 11 48 33 10 6
Cost of shares repurchased (103) (71) (534) (63) (288) (230) (32) (1)
------- ------ -------- ------- ------- -------- -------- -------
Increase (decrease) in net
assets derived from
Investor Class
transactions 154 399 1,621 1,095 (37) 715 32 76
-------- ------ -------- ------- ------- -------- -------- -------
Increase (decrease) in net
assets derived from
capital share
transactions 21,980 (27,673) (21,963) (4,877) (8,565) (6,485) 780 37
-------- ------ -------- ------- ------- -------- -------- -------
Net increase (decrease)
in net assets 33,365 (38,244) (15,723)(12,737) (3,437) (12,943) 2,450 (1,397)
-------- ------ -------- ------- ------- -------- -------- -------
Net assets:
Beginning of period 92,844 131,088 92,135 104,872 54,647 67,590 15,108 16,505
-------- ------- -------- ------- ------- -------- -------- -------
End of period $126,209 $92,844 $ 76,412 $92,135 $51,210 $ 54,647 $ 17,558 $15,108
======== ======= ======== ======= ======= ======== ======== =======
Capital share transactions:
Trust Class:
Shares issued 4,247 2,108 897 1,638 383 538 453 371
Shares issued in lieu
of cash distributions -- -- -- -- -- -- -- --
Shares repurchased (2,014) (4,983) (3,346) (2,286) (1,262) (1,315) (379) (378)
-------- ------- -------- ------- ------- -------- -------- --------
Total Trust Class
transactions 2,233 (2,875) (2,449) (648) (879) (777) 74 (7)
-------- ------- -------- ------- ------- -------- -------- --------
Investor Class:
Shares issued 23 45 211 122 21 93 5 6
Shares issued in lieu
of cash distributions 2 2 14 2 5 3 1 1
Shares repurchased (10) (8) (53) (7) (29) (23) (3) --
-------- ------- -------- ------- ------- -------- -------- --------
Total Investor Class
transactions 15 39 172 117 (3) 73 3 7
-------- ------- -------- ------- ------- -------- -------- --------
Increase (decrease)
in capital shares 2,248 (2,836) (2,277) (531) (882) (704) 77 --
======== ======= ======== ======= ======= ======== ======== ========
<FN>
*Commenced operations on January 3, 1994.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
60
<PAGE>
DECEMBER 31, 1995
Statement of Changes in Net Assets (000) (LOGO)
<TABLE>
<CAPTION>
INTERNATIONAL SMALL ASIAN
BALANCED VALUE GROWTH EQUITY CAP TIGERS
FUND FUND FUND FUND FUND FUND*
===================================================================================================================================
1995 1994 1995 1994 1995 1994 1995 1994 1995 1994 1995 1994
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income $ 2,422 $ 1,908 $ 3,028 $ 1,932 $ 1,166 $ 1,484 $ 447 $ 73 $ 37 $ 114 $ 289 $ 67
Net realized gain
(loss) from security
and foreign currency
transactions 3,342 181 3,456 1,592 8,079 296 991 251 2,502 (1,238) (161) (62)
Net change in
unrealized
appreciation
(depreciation) on
investments and
foreign currency
transactions 7,291 (3,604) 20,121 (3,886) 14,198 (4,297) 7,172 584 2,930 (2,044) 2,686 (705)
-------- ------- -------- -------- -------- -------- -------- ------- -------- -------- ------- -------
Net increase (decrease)
in net assets
resulting from
operations 13,055 (1,515) 26,605 (362) 23,443 (2,517) 8,610 908 5,469 (3,168) 2,814 (700)
-------- ------- -------- -------- -------- -------- -------- ------- -------- -------- ------- -------
Dividends distributed
from:
Net investment income:
Trust Class (2,309) (1,801) (3,032) (1,880) (1,162) (1,444) (292) -- (37) (111) (263) (32)
Investor Class (122) (69) (31) (20) (25) (16) (2) -- -- -- (6) --
Net realized gains:
Trust Class (1,941) (40) (2,748) (1,062) (6,782) (988) (1,076) (23) (303) -- -- (19)
Investor Class (153) (2) (31) (12) (213) (18) (23) (1) (7) -- -- (1)
-------- ------- -------- -------- -------- -------- -------- ------- -------- -------- ------- -------
Total dividends
distributed (4,525) (1,912) (5,842) (2,974) (8,182) (2,466) (1,393) (24) (347) (111) (269) (52)
-------- ------- -------- -------- -------- -------- -------- ------- -------- -------- ------- -------
Capital share
transactions:
Trust Class:
Proceeds from shares
issued 24,298 61,650 63,103 25,664 18,301 28,674 46,191 24,699 9,098 10,505 10,886 23,298
Shares issued in lieu
ofcash distributions -- 1 -- 1 -- -- -- -- -- -- -- --
Cost of shares
repurchased (54,617) (44,784) (13,942) (15,147) (37,739) (39,640) (17,048) (7,710) (21,804) (29,074) (8,070) (4,710)
-------- ------- -------- -------- -------- -------- -------- ------- -------- -------- ------- -------
Increase (decrease) in
net assets derived
from Trust Class
transactions (30,319) 16,867 49,161 10,518 (19,438) (10,966) 29,143 16,989 (12,706) (18,569) 2,816 18,588
-------- ------- -------- -------- -------- -------- -------- ------- -------- -------- ------- -------
Investor Class:
Proceeds from shares
issued 1,133 2,223 642 526 844 926 586 943 174 194 172 743
Shares issued in lieu
of cash distributions 270 71 62 31 237 32 22 1 6 -- 6 1
Cost of shares
repurchased (746) (529) (176) (226) (247) (190) (266) (92) (20) (6) (226) (15)
-------- ------- -------- -------- -------- -------- -------- ------- -------- -------- ------- -------
Increase (decrease) in
net assets derived
from Investor Class
transactions 657 1,765 528 331 834 768 342 852 160 188 (48) 729
-------- ------- -------- -------- -------- -------- -------- ------- -------- -------- ------- -------
Increase (decrease) in
net assets derived
from capital share
transactions (29,662) 18,632 49,689 10,849 (18,604) (10,198) 29,485 17,841 (12,546) (18,381) 2,768 19,317
-------- ------- -------- -------- -------- -------- -------- ------- -------- -------- ------- -------
Net increase (decrease)
in net assets (21,132) 15,205 70,452 7,513 (3,343) (15,181) 36,702 18,725 (7,424) (21,660) 5,313 18,565
-------- ------- -------- -------- -------- -------- -------- ------- -------- -------- ------- -------
Net assets:
Beginning of period 74,980 59,775 62,288 54,775 84,240 99,421 42,503 23,778 31,821 53,481 18,565 --
-------- ------- -------- -------- -------- -------- -------- ------- -------- -------- ------- -------
End of period $ 53,848 $74,980 $132,740 $ 62,288 $ 80,897 $ 84,240 $ 79,205 $42,503 $ 24,397 $ 31,821 $23,878 $18,565
======== ======= ======== ======== ======== ======== ======== ======= ======== ======== ======= =======
Capital share
transactions:
Trust Class:
Shares issued 2,401 6,296 5,673 2,505 1,618 2,785 3,382 1,898 812 1,062 1,131 2,359
Shares issued in lieu
of cash distributions -- -- -- -- -- -- -- -- -- -- -- --
Shares repurchased (5,320) (4,564) (1,257) (1,496) (3,383) (3,935) (1,235) (583) (2,192) (2,981) (801) (474)
-------- ------- -------- -------- -------- -------- -------- ------- -------- -------- ------- -------
Total Trust Class
transactions (2,919) 1,732 4,416 1,009 (1,765) (1,150) 2,147 1,315 (1,380) (1,919) 330 1,885
-------- ------- -------- -------- -------- -------- -------- ------- -------- -------- ------- -------
Investor Class:
Shares issued 111 224 57 51 75 91 43 72 15 20 18 76
Shares issued in lieu
of cash distributions 26 7 5 3 21 3 2 -- 1 -- 1 --
Shares repurchased (73) (54) (15) (22) (22) (19) (20) (7) (2) (1) (23) (1)
-------- ------- -------- -------- -------- -------- -------- ------- -------- -------- ------- -------
Total Investor Class
transactions 64 177 47 32 74 75 25 65 14 19 (4) 75
-------- ------- -------- -------- -------- -------- -------- ------- -------- -------- ------- -------
Increase (decrease)
in capital shares (2,855) 1,909 4,463 1,041 (1,691) (1,075) 2,172 1,380 (1,366) (1,900) 326 1,960
======== ======= ======== ======== ======== ======== ======== ======= ======== ======== ======= =======
<FN>
* Commenced operations on January 3, 1994.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
61
<PAGE>
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
NET ASSET REALIZED DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED FROM NET FROM NET ASSET
BEGINNING INVESTMENT GAINS INVESTMENT CAPITAL VALUE END TOTAL
OF PERIOD INCOME ON SECURITIES INCOME GAINS OF PERIOD RETURN
- -----------------------------------------------------------------------------------------------------
TREASURY MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
TRUST CLASS
1995 $1.00 $0.05 $0.00 $(0.05) $0.00 $1.00 5.28%
1994 1.00 0.04 0.00 (0.04) 0.00 1.00 3.58
1993(1) 1.00 0.03 0.00 (0.03) 0.00 1.00 2.56
INVESTOR CLASS
1995 $1.00 $0.05 $0.00 $(0.05) $0.00 $1.00 5.02%
1994 1.00 0.03 0.00 (0.03) 0.00 1.00 3.32
1993(2) 1.00 0.02 0.00 (0.02) 0.00 1.00 2.29
- -----------------------------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------------
TRUST CLASS
1995 $1.00 $0.05 $0.00 $(0.05) $0.00 $1.00 5.59%
1994 1.00 0.04 0.00 (0.04) 0.00 1.00 3.89
1993(1) 1.00 0.03 0.00 (0.03) 0.00 1.00 3.00
INVESTOR CLASS
1995 $1.00 $0.05 $0.00 $(0.05) $0.00 $1.00 5.33%
1994 1.00 0.04 0.00 (0.04) 0.00 1.00 3.63
1993(3) 1.00 0.02 0.00 (0.02) 0.00 1.00 2.78
- -----------------------------------------------------------------------------------------------------
MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------------
TRUST CLASS
1995 $1.00 $0.06 $0.00 $(0.06) $0.00 $1.00 5.64%
1994 1.00 0.04 0.00 (0.04) 0.00 1.00 3.97
1993(1) 1.00 0.03 0.00 (0.03) 0.00 1.00 3.01
INVESTOR CLASS
1995 $1.00 $0.05 $0.00 $(0.05) $0.00 $1.00 5.38%
1994 1.00 0.04 0.00 (0.04) 0.00 1.00 3.71
1993(4) 1.00 0.02 0.00 (0.02) 0.00 1.00 2.76
- -----------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
62
<PAGE>
DECEMBER 31, 1995
(LOGO)
<TABLE>
<CAPTION>
RATIO OF NET
INVESTMENT
RATIO OF NET RATIO OF EXPENSES INCOME (LOSS)
RATIO OF INVESTMENT TO AVERAGE TO AVERAGE
NET ASSETS EXPENSES INCOME NET ASSETS NET ASSETS PORTFOLIO
END OF TO AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER
PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
- -----------------------------------------------------------------------------------------------------
TREASURY MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
TRUST CLASS
1995 $110,475 0.44% 5.16% 0.59% 5.01% N/A
1994 111,545 0.45 3.50 0.61 3.34 N/A
1993(1) 108,495 0.47 2.53 0.62 2.38 N/A
INVESTOR CLASS
1995 $ 7,931 0.69% 4.89% 0.84% 4.74% N/A
1994 3,231 0.70 3.52 0.86 3.36 N/A
1993(2) 1,347 0.75 2.28 5.23** (2.20)** N/A
- -----------------------------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------------
TRUST CLASS
1995 $207,615 0.42% 5.45% 0.42% 5.45% N/A
1994 157,140 0.42 3.81 0.42 3.81 N/A
1993(1) 159,401 0.45 2.92 0.45 2.92 N/A
INVESTOR CLASS
1995 $ 3,002 0.67% 5.18% 0.67% 5.18% N/A
1994 2,739 0.67 3.62 0.67 3.62 N/A
1993(3) 1,814 0.72 2.69 2.37** 1.04** N/A
- -----------------------------------------------------------------------------------------------------
MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------------
TRUST CLASS
1995 $475,688 0.41% 5.50% 0.56% 5.35% N/A
1994 460,583 0.41 3.93 0.56 3.78 N/A
1993(1) 367,110 0.46 2.92 0.61 2.77 N/A
INVESTOR CLASS
1995 $ 1,358 0.66% 5.22% 0.81% 5.07% N/A
1994 605 0.66 4.13 0.81 3.98 N/A
1993(4) 118 0.72 2.69 10.48** (7.09)** N/A
- -----------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
63
<PAGE>
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
NET ASSET REALIZED DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED FROM NET FROM NET ASSET
BEGINNING INVESTMENT GAINS (LOSSES) INVESTMENT CAPITAL VALUE END TOTAL
OF PERIOD INCOME ON SECURITIES INCOME GAINS OF PERIOD RETURN
- -----------------------------------------------------------------------------------------------------
TAX-EXEMPT MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
TRUST CLASS
1995 $ 1.00 $0.03 $0.00 $(0.03) $0.00 $1.00 3.49%
1994 1.00 0.02 0.00 (0.02) 0.00 1.00 2.50
1993(1) 1.00 0.02 0.00 (0.02) 0.00 1.00 1.98
INVESTOR CLASS
1995 $ 1.00 $0.03 $0.00 $(0.03) $0.00 $1.00 3.24%
1994 1.00 0.02 0.00 (0.02) 0.00 1.00 2.24
1993(5) 1.00 0.01 0.00 (0.01) 0.00 1.00 1.65
- -----------------------------------------------------------------------------------------------------
FIXED INCOME FUND
- -----------------------------------------------------------------------------------------------------
TRUST CLASS
1995 $ 9.30 $0.59 $ 1.02 $(0.59) $0.00 $10.32 17.75%
1994 10.23 0.54 (0.93) (0.54) 0.00 9.30 (3.82)
1993(1) 10.00 0.47 0.50 (0.47) (0.27) 10.23 9.92
INVESTOR CLASS
1995 $ 9.32 $0.55 $ 1.04 $(0.56) $0.00 $10.35 17.40%*
1994 10.24 0.50 (0.90) (0.52) 0.00 9.32 (3.97)*
1993(6) 10.30 0.35 0.23 (0.37) (0.27) 10.24 7.44*
- -----------------------------------------------------------------------------------------------------
INTERMEDIATE GOVERNMENT FIXED INCOME FUND
- -----------------------------------------------------------------------------------------------------
TRUST CLASS
1995 $ 9.33 $0.54 $ 0.73 $(0.54) $0.00 $10.06 13.86%
1994 10.08 0.47 (0.75) (0.47) 0.00 9.33 (2.78)
1993(1) 10.00 0.41 0.18 (0.41) (0.10) 10.08 6.04
INVESTOR CLASS
1995 $ 9.32 $0.49 $ 0.76 $(0.52) $0.00 $10.05 13.59%*
1994 10.07 0.43 (0.73) (0.45) 0.00 9.32 (3.03)*
1993(7) 10.21 0.28 (0.02) (0.30) (0.10) 10.07 3.42*
- -----------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
64
<PAGE>
DECEMBER 31, 1995
(LOGO)
<TABLE>
<CAPTION>
RATIO OF NET
INVESTMENT
RATIO OF NET RATIO OF EXPENSES INCOME (LOSS)
RATIO OF INVESTMENT TO AVERAGE TO AVERAGE
NET ASSETS EXPENSES INCOME NET ASSETS NET ASSETS PORTFOLIO
END OF TO AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER
PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
- -----------------------------------------------------------------------------------------------------
TAX-EXEMPT MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
TRUST CLASS
1995 $167,945 0.41% 3.44% 0.56% 3.29% N/A
1994 161,054 0.43 2.52 0.59 2.36 N/A
1993(1) 116,000 0.45 1.97 0.60 1.82 N/A
INVESTOR CLASS
1995 $ 3,244 0.66% 3.19% 0.81% 3.04% N/A
1994 4,204 0.68 2.31 0.84 2.15 N/A
1993(5) 1,394 0.74 1.81 4.88** (2.33)** N/A
- -----------------------------------------------------------------------------------------------------
FIXED INCOME FUND
- -----------------------------------------------------------------------------------------------------
TRUST CLASS
1995 $125,563 0.74% 5.97% 0.84% 5.87% 59%
1994 92,402 0.72 5.45 0.82 5.35 126%
1993(1) 131,002 0.77 4.60 0.87 4.50 163
INVESTOR CLASS
1995 $ 646 0.99% 5.72% 1.09% 5.62% 59%
1994 442 0.98 5.38 1.08 5.28 126
1993(6) 86 1.06 4.08 42.44** (37.30)** 163
- -----------------------------------------------------------------------------------------------------
INTERMEDIATE GOVERNMENT FIXED INCOME FUND
- -----------------------------------------------------------------------------------------------------
TRUST CLASS
1995 $ 73,466 0.73% 5.48% 0.83% 5.38% 115%
1994 91,002 0.74 4.88 0.84 4.78 124
1993(1) 104,826 0.76 4.15 0.86 4.05 81
INVESTOR CLASS
1995 $ 2,946 0.98% 5.18% 1.08% 5.08% 115%
1994 1,133 1.02 5.05 1.12 4.95 124
1993(7) 46 1.04 3.85 77.08** (72.19)** 81
- -----------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
65
<PAGE>
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
NET ASSET REALIZED DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED FROM NET FROM NET ASSET
BEGINNING INVESTMENT GAINS (LOSSES) INVESTMENT CAPITAL VALUE END TOTAL
OF PERIOD INCOME ON SECURITIES INCOME GAINS OF PERIOD RETURN
- -----------------------------------------------------------------------------------------------------
TAX-EXEMPT FIXED INCOME FUND
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
TRUST CLASS
1995 $ 9.26 $0.48 $0.94 $(0.48) $0.00 $10.20 15.67%
1994 10.23 0.44 (0.94) (0.44) (0.03) 9.26 (4.93)
1993(1) 10.00 0.42 0.42 (0.42) (0.19) 10.23 8.64
INVESTOR CLASS
1995 $ 9.24 $0.43 $0.97 $(0.46) $ 0.00 $10.18 15.43%*
1994 10.22 0.40 (0.93) (0.42) (0.03) 9.24 (5.27)*
1993(8) 10.29 0.32 0.14 (0.34) (0.19) 10.22 5.73*
- -----------------------------------------------------------------------------------------------------
GLOBAL FIXED INCOME FUND
- -----------------------------------------------------------------------------------------------------
TRUST CLASS
1995 $ 9.54 $0.62 $1.38 $(0.96) $0.00 $10.58 20.99%
1994 10.43 0.56 (0.72) (0.55) (0.18) 9.54 (1.47)
1993(9) 10.00 0.54 0.94 (0.64) (0.41) 10.43 16.33
INVESTOR CLASS
1995 $ 9.53 $0.52 $1.45 $(0.94) $0.00 $10.56 20.68%*
1994 10.42 0.46 (0.64) (0.53) (0.18) 9.53 (1.71)*
1993(10) 10.88 0.40 0.12 (0.57) (0.41) 10.42 6.61*
- -----------------------------------------------------------------------------------------------------
BALANCED FUND
- -----------------------------------------------------------------------------------------------------
TRUST CLASS
1995 $ 9.53 $0.39 $1.65 $(0.39) $(0.43) $10.75 21.85%
1994 10.04 0.30 (0.50) (0.30) (0.01) 9.53 (2.11)
1993(1) 10.00 0.29 0.39 (0.29) (0.35) 10.04 7.09
INVESTOR CLASS
1995 $ 9.53 $0.34 $1.67 $(0.36) $(0.43) $10.75 21.52%*
1994 10.03 0.27 (0.49) (0.27) (0.01) 9.53 (2.29)*
1993(11) 10.28 0.20 0.12 (0.22) (0.35) 10.03 4.07*
- -----------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
66
<PAGE>
DECEMBER 31, 1995
(LOGO)
<TABLE>
<CAPTION>
RATIO OF NET
INVESTMENT
RATIO OF NET RATIO OF EXPENSES INCOME (LOSS)
RATIO OF INVESTMENT TO AVERAGE TO AVERAGE
NET ASSETS EXPENSES INCOME NET ASSETS NET ASSETS PORTFOLIO
END OF TO AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER
PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
- -----------------------------------------------------------------------------------------------------
TAX-EXEMPT FIXED INCOME FUND
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
TRUST CLASS
1995 $50,079 0.75% 4.84% 0.87% 4.72% 129%
1994 53,588 0.71 4.54 0.84 4.41 146
1993(1) 67,162 0.75 4.17 0.85 4.07 149
INVESTOR CLASS
1995 $ 1,131 1.00% 4.59% 1.12% 4.47% 129%
1994 1,059 0.97 4.35 1.10 4.22 146
1993(8) 428 1.05 3.88 11.86** (6.93)** 149
- -----------------------------------------------------------------------------------------------------
GLOBAL FIXED INCOME FUND
- -----------------------------------------------------------------------------------------------------
TRUST CLASS
1995 $17,433 1.10% 5.86% 1.16% 5.80% 105%
1994 15,021 1.16 5.09 1.22 5.03 138
1993(9) 16,488 1.21 5.95 1.21 5.95 146
INVESTOR CLASS
1995 $ 125 1.35% 5.57% 1.41% 5.51% 105%
1994 87 1.41 5.03 7.54 (1.10) 138
1993(10) 17 1.56 5.85 319.45** (312.04)** 146
- -----------------------------------------------------------------------------------------------------
BALANCED FUND
- -----------------------------------------------------------------------------------------------------
TRUST CLASS
1995 $49,899 0.92% 3.74% 0.92% 3.74% 85%
1994 72,086 0.94 3.11 0.94 3.11 85
1993(1) 58,510 0.97 2.88 0.97 2.88 126
INVESTOR CLASS
1995 $ 3,949 1.22% 3.36% 1.22% 3.36% 85%
1994 2,894 1.24 2.86 1.34 2.76 85
1993(11) 1,265 1.30 2.30 5.06** (1.46)** 126
- -----------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
67
<PAGE>
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
NET ASSET NET REALIZED DIVIDENDS DISTRIBUTIONS
VALUE INVESTMENT AND UNREALIZED FROM NET FROM NET ASSET
BEGINNING INCOME GAINS (LOSSES) INVESTMENT CAPITAL VALUE END TOTAL
OF PERIOD (LOSS) ON SECURITIES INCOME GAINS OF PERIOD RETURN
- -----------------------------------------------------------------------------------------------------
VALUE FUND
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
TRUST CLASS
1995 $ 9.79 $0.34 $2.74 $(0.35) $(0.26) $12.26 32.02%
1994 10.30 0.35 (0.35) (0.34) (0.17) 9.79 0.00
1993(1) 10.00 0.28 0.38 (0.28) (0.08) 10.30 6.73
INVESTOR CLASS
1995 $ 9.80 $0.32 $2.74 $(0.32) $(0.26) $12.28 31.72%*
1994 10.30 0.31 (0.33) (0.31) (0.17) 9.80 (0.21)*
1993(12) 10.41 0.21 (0.03) (0.21) (0.08) 10.30 1.95*
- -----------------------------------------------------------------------------------------------------
GROWTH FUND
- -----------------------------------------------------------------------------------------------------
TRUST CLASS
1995 $ 9.73 $0.16 $2.88 $(0.16) $(1.00) $11.61 31.60%
1994 10.21 0.16 (0.36) (0.16) (0.12) 9.73 (2.05)
1993(1) 10.00 0.17 0.33 (0.17) (0.12) 10.21 5.07
INVESTOR CLASS
1995 $ 9.74 $0.12 $2.89 $(0.13) $(1.00) $11.62 31.29%*
1994 10.23 0.13 (0.37) (0.13) (0.12) 9.74 (2.42)*
1993(13) 10.44 0.10 (0.08) (0.11) (0.12) 10.23 (0.23)*
- -----------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- -----------------------------------------------------------------------------------------------------
TRUST CLASS
1995 $13.00 $0.07 $1.75 $(0.06) $(0.20) $14.56 14.03%
1994 12.59 0.02 0.40 0.00 (0.01) 13.00 3.32
1993(1) 10.00 0.00 2.63 0.00 (0.04) 12.59 26.55
INVESTOR CLASS
1995 $12.96 $0.05 $1.73 $(0.02) $(0.20) $14.52 13.79%*
1994 12.58 0.02 0.37 0.00 (0.01) 12.96 3.08*
1993(14) 10.93 (0.01) 1.70 0.00 (0.04) 12.58 23.52*
- -----------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
68
<PAGE>
DECEMBER 31, 1995
(LOGO)
<TABLE>
<CAPTION>
RATIO OF NET
INVESTMENT
RATIO OF NET RATIO OF EXPENSES INCOME (LOSS)
RATIO OF INVESTMENT TO AVERAGE TO AVERAGE
NET ASSETS EXPENSES INCOME (LOSS) NET ASSETS NET ASSETS PORTFOLIO
END OF TO AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER
PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
- -----------------------------------------------------------------------------------------------------
VALUE FUND
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
TRUST CLASS
1995 $131,243 1.05% 3.07% 1.05% 3.07% 37%
1994 61,557 1.06 3.45 1.06 3.45 38
1993(1) 54,340 1.10 2.85 1.10 2.85 40
INVESTOR CLASS
1995 $ 1,497 1.33% 2.79% 1.33% 2.79% 37%
1994 731 1.37 3.13 1.37 3.13 38
1993(12) 435 1.48 2.51 8.99** (5.00)** 40
- -----------------------------------------------------------------------------------------------------
GROWTH FUND
- -----------------------------------------------------------------------------------------------------
TRUST CLASS
1995 $ 78,216 1.02% 1.37% 1.02% 1.37% 71%
1994 82,710 1.02 1.58 1.03 1.57 68
1993(1) 98,581 1.06 1.70 1.07 1.69 82
INVESTOR CLASS
1995 $ 2,681 1.31% 1.10% 1.31% 1.10% 71%
1994 1,530 1.33 1.30 1.33 1.30 68
1993(13) 840 1.43 1.24 6.55** (3.88)** 82
- -----------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- -----------------------------------------------------------------------------------------------------
TRUST CLASS
1995 $ 77,519 1.38% 0.70% 1.38% 0.70% 11%
1994 41,324 1.43 0.21 1.46 0.18 6
1993(1) 23,457 1.64 0.03 1.64 0.03 13
INVESTOR CLASS
1995 $ 1,686 1.68% 0.42% 1.68% 0.42% 11%
1994 1,179 1.73 0.03 2.22 (0.46) 6
1993(14) 321 1.92 (0.38) 20.12** (18.58)** 13
- -----------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
69
<PAGE>
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
NET ASSET REALIZED DIVIDENDS DISTRIBUTIONS
VALUE NET AND UNREALIZED FROM NET FROM NET ASSET
BEGINNING INVESTMENT GAINS (LOSSES) INVESTMENT CAPITAL VALUE END TOTAL
OF PERIOD INCOME (LOSS) ON SECURITIES INCOME GAINS OF PERIOD RETURN
- -------------------------------------------------------------------------------------------------------
SMALL CAP FUND
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
TRUST CLASS
1995 $ 9.57 $0.02 $3.05 $(0.02) $(0.16) $12.46 32.13%
1994 10.24 0.03 (0.67) (0.03) 0.00 9.57 (6.27)
1993(1) 10.00 0.04 0.24 (0.04) 0.00 10.24 2.82
INVESTOR CLASS
1995 $ 9.58 $(0.01) $3.05 $0.00 $(0.16) $12.46 31.73%*
1994 10.25 0.00 (0.67) 0.00 0.00 9.58 (6.54)*
1993(15) 9.51 0.00 0.75 (0.01) 0.00 10.25 10.55*
- -------------------------------------------------------------------------------------------------------
ASIAN TIGERS FUND
- -------------------------------------------------------------------------------------------------------
TRUST CLASS
1995 $ 9.47 $0.12 $0.98 $(0.12) $0.00 $10.45 11.61%
1994(16) 10.00 0.03 (0.53) (0.02) (0.01) 9.47 (5.07)
INVESTOR CLASS
1995 $ 9.47 $0.11 $0.95 $(0.09) $0.00 $10.44 11.18%*
1994(17) 10.00 0.01 (0.53) 0.00 (0.01) 9.47 (5.37)*
- -------------------------------------------------------------------------------------------------------
<FN>
*Sales load is not included in total return.
**Ratios are high relative to subsequent years as a result of the low initial
asset levels during the Investor Classes' initial year of operations.
1. Commenced operations on January 4, 1993. All ratios and total returns for the period have been annualized.
2. Commenced operations on March 25, 1993. All ratios and total returns for the period have been annualized.
3. Commenced operations on April 22, 1993. All ratios and total returns for the period have been annualized.
4. Commenced operations on March 31, 1993. All ratios and total returns for the period have been annualized.
5. Commenced operations on April 13, 1993. All ratios and total returns for the period have been annualized.
6. Commenced operations on March 12, 1993. All ratios and total returns for the period have been annualized.
7. Commenced operations on April 12, 1993. All ratios and total returns for the period have been annualized.
8. Commenced operations on March 9, 1993. All ratios and total returns for the period have been annualized.
</FN>
</TABLE>
70
<PAGE>
DECEMBER 31, 1995
(LOGO)
<TABLE>
<CAPTION>
RATIO OF NET
INVESTMENT
RATIO OF NET RATIO OF EXPENSES INCOME (LOSS)
RATIO OF INVESTMENT TO AVERAGE TO AVERAGE
NET ASSETS EXPENSES INCOME (LOSS) NET ASSETS NET ASSETS PORTFOLIO
END OF TO AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER
PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
- -----------------------------------------------------------------------------------------------------
SMALL CAP FUND
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
TRUST CLASS
1995 $23,844 1.10% 0.18% 1.10% 0.18% 142%
1994 31,527 1.06 0.27 1.06 0.27 43
1993(1) 53,357 1.09 0.40 1.10 0.39 27
INVESTOR CLASS
1995 $ 553 1.39% (0.08)% 1.39% (0.08)% 142%
1994 294 1.38 0.02 1.38 0.02 43
1993(15) 124 1.57 (0.10) 33.84** (32.37)** 27
- -------------------------------------------------------------------------------------------------------
ASIAN TIGERS FUND
- -------------------------------------------------------------------------------------------------------
TRUST CLASS
1995 $23,145 1.52% 1.38% 1.60% 1.30% 28%
1994(16) 17,860 1.60 0.45 1.71 0.34 13
INVESTOR CLASS
1995 $ 733 1.81% 1.05% 1.88% 0.98% 28%
1994(17) 705 1.90 0.15 2.75** (0.70)** 13
- -------------------------------------------------------------------------------------------------------
<FN>
10. Commenced operations on April 26, 1993. All ratios and total returns for the period have been annualized.
11. Commenced operations on March 9, 1993. All ratios and total returns for the period have been annualized.
12. Commenced operations on March 26, 1993. All ratios and total returns for the period have been annualized.
13. Commenced operations on March 8, 1993. All ratios and total returns for the period have been annualized.
14. Commenced operations on April 12, 1993. All ratios and total returns for the period have been annualized.
15. Commenced operations on April 12, 1993. All ratios and total returns for the period have been annualized.
16. Commenced operations on January 3, 1994. All ratios and total returns for the period have been annualized.
17. Commenced operations on January 12, 1994. All ratios and total returns for the period have been annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
71
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
Rembrandt Funds(REGISTRATION MARK) (the "Trust") was organized as
a Massachusetts business trust under a Declaration of Trust dated September 17,
1992. The Trust is registered under the Investment Company Act of 1940, as
amended, as an open-end management investment company with 17 funds: Treasury
Money Market Fund, Government Money Market Fund, Money Market Fund (formerly the
Taxable Money Market Fund), Tax-Exempt Money Market Fund (collectively "the
Money Market Funds"), Fixed Income Fund (formerly the Taxable Fixed Income
Fund), Intermediate Government Fixed Income Fund (formerly the
Short/Intermediate Government Fixed Income Fund), Tax-Exempt Fixed Income Fund,
Global Fixed Income Fund, Limited Volatility Fixed Income Fund (collectively
"the Fixed Income Funds"), Balanced Fund, Value Fund, Growth Fund, International
Equity Fund, Small Cap Fund, TransEurope Fund, Latin America Equity Fund and
Asian Tigers Fund (collectively "the Equity Funds"). The Limited Volatility
Fixed Income Fund, Latin America Equity Fund and TransEurope Fund have not yet
commenced operations as of December 31, 1995. The assets of each Fund are
segregated, and a shareholder's interest is limited to the Fund in which shares
are held. The Trust is registered to offer two classes of shares: Trust Class
and Investor Class.
2. Significant Accounting Policies
The following is a summary of the significant accounting policies followed by
the Funds.
Security Valuation--Investments in equity securities which are traded on a
national securities exchange (or reported on NASDAQ national market system) are
stated at the last quoted sales price if readily available for such equity
securities on each business day; other equity securities traded in the
over-the-counter market and listed equity securities for which no sale was
reported on that date are stated at the last quoted bid price. Debt obligations
exceeding 60 days to maturity for which market quotations are readily available
are valued at the most recently quoted bid price. Debt obligations with 60 days
or less until maturity may be valued at their amortized cost. Foreign securities
in the Global Fixed Income Fund, Asian Tigers Fund, and International Equity
Fund are valued based upon quotations from the primary market in which they are
traded.
Investment securities held by the Money Market Funds 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 Fund's intention 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 provisions for Federal income taxes are required in the
accompanying financial statements.
Security Transactions and Related Income--Security transactions are
accounted for on the date the security is purchased or sold (trade date).
Dividend income is recognized on the ex-dividend date, and interest income is
recognized on an accrual basis. Costs used in determining realized gains and
losses on the sales of investment securities are those of the specific
securities sold, adjusted for the accretion and amortization of purchase
discounts and premiums during the respective holding periods. Purchase discounts
and premiums on securities held by the Equity and Fixed Income Funds are
accreted and amortized to maturity using the interest method, which approximates
the effective interest method.
72
<PAGE>
DECEMBER 31, 1995
(LOGO)
Repurchase Agreements--Securities pledged as collateral for repurchase
agreements are held by the custodian bank until the respective agreements
mature. Provisions of the repurchase agreements ensure 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 of the collateral by the Funds may be delayed or limited.
Net Asset Value Per Share--The net asset value per share of each Fund is
calculated on each business day. In general, it is computed by dividing the
assets of each Fund, less its liabilities, by the number of outstanding shares
of the Fund.
Foreign Currency Transactions--With respect to the Global Fixed Income
Fund, Asian Tigers Fund, and International Equity Fund (the "International
Funds"), the books and records are maintained in U.S. dollars. Foreign currency
amounts are translated into U.S. dollars on the following basis:
(I) market value of investment securities, assets and liabilities at the
current rate of exchange; and
(II) purchases and sales of investment securities, income, and expenses at
the relevent rates of exchange prevailing on the respective dates of
such transactions.
The International Funds do not isolate that portion of gains and losses on
investments in equity securities which is due to changes in the foreign exchange
rates from that which is due to change in market prices of equity securities.
The International Funds report certain foreign currency-related
transactions as components of realized gains for financial reporting purposes,
whereas such components are treated as ordinary income for Federal income tax
purposes.
Forward Foreign Currency Contracts--The Global Fixed Income Fund enters
into forward foreign currency contracts as hedges against fund positions. The
aggregate principal amounts of the contracts are not recorded as the Fund
intends to settle the contracts prior to delivery. All commitments are
"marked-to-market" daily at the applicable foreign exchange rate and any
resulting unrealized gains or losses are recorded currently. The Fund realizes
gains or losses at the time the forward contracts are extinguished. Unrealized
gains or losses on outstanding positions in forward foreign currency contracts
held at the close of the year are recognized as ordinary income or loss for
Federal income tax purposes.
Maturity Dates--Certain variable rate and floating rate securities of the
Funds are subject to "maturity shortening" devices such as put or demand
features. Under Rule 2a-7 of the Investment Company Act of 1940, as amended,
these securities are deemed to have maturities shorter than the ultimate
maturity dates. Accordingly, the maturity dates reflected in the Statements of
Net Assets are the shorter of the effective put/demand date or the ultimate
maturity date.
Classes--Class-specific expenses are borne by that class. Income, expenses,
and realized and unrealized gains/losses are allocated to the respective classes
on the basis of relative daily net assets.
Other--Distributions from net investment income for the Equity and Fixed
Income Funds are paid to shareholders on a periodic basis. Distributions from
net investment income for the Money Market Funds are distributed to shareholders
daily. Any net realized capital gains on sales of securities are distributed to
shareholders at least annually.
The amounts of distributions from net investment income and net realized
capital gains are determined in accordance with Federal income tax regulations,
which may differ from those amounts
73
<PAGE>
NOTES TO FINANCIAL STATEMENTS
recorded under generally accepted accounting principles. These book/tax
differences are either temporary or permanent in nature. To the extent that
these differences are permanent, they are charged or credited to paid-in capital
in the period that the difference arises.
3. ADMINISTRATION AND DISTRIBUTION AGREEMENTS
The Trust and SEI Financial Management Corpora-
tion (the "Administrator") have entered into an administration agreement. Under
the terms of the Administration Agreement (the "Administration Agreement"), the
"Administrator" is entitled to a fee calculated daily and paid monthly at an
annual rate of .15% of the average daily net assets of each Fund.
The Trust and Rembrandt Financial Services Company (the "Distributor"), a
wholly owned subsidiary of SEI Financial Services Company, have entered into a
distribution agreement. The Distributor receives no fees for its distribution
services under this agreement for Trust Class shares of any Fund. The
Distributor is entitled to a fee of .25% of the
average daily net assets of the Investor Class shares of the Fixed Income and
Money Market Funds and, through October 24, 1995, .30% of the average daily net
assets of the Investor Class shares of the Equity Funds as compensation for its
services. Since October 24, 1995, the distributor is entitled to a fee of .25%
of the average daily net assets of the Investor Class shares of each Fund.
4. ORGANIZATIONAL COSTS AND TRANSACTIONS WITH AFFILIATES
Organizational costs have been capitalized by the Funds and are being amortized
over 60 months commencing with operations. In the event any of the initial
shares are redeemed by any holder thereof during the period that the Fund is
amortizing its organizational costs, the redemption proceeds payable to the
holder thereof by the Fund will be reduced by the unamortized organizational
costs in the same ratio as the number of initial shares being redeemed bears to
the number of initial shares outstanding at the time of the redemption. These
costs include legal fees of approximately $53,000 for organizational work
performed by a law firm of which an officer of the Trust is a partner.
Certain officers of the Trust are also officers of the Administrator and/or
Distributor. Such officers are paid no fees by the Trust for serving in their
roles as officers of the Trust.
During the period ended December 31, 1994, ABN AMRO North America, Inc., an
affiliate of the Advisor, purchased securities from the Money Market Fund and
Government Money Market Fund for $30,000,000 and $15,000,000, respectively,
which represented the amortized cost and carrying value of the securities. The
securities' aggregate market values were $28,600,000 and $14,300,000,
respectively, at the time of purchase. In connection with these transactions the
Funds recorded realized losses on the sales of these securities in their
statements of operations along with an offsetting capital contribution from the
affiliate. These transactions did not change the net asset value of either Fund.
5. INVESTMENT ADVISORY AGREEMENT
The Trust has entered into an investment
advisory agreement with LaSalle Street Capital Management, Ltd. (the "Advisor"),
under which the Advisor is entitled to an annual fee equal to .60% of the
average daily net assets of each of the Fixed Income, Intermediate Government
Fixed Income, Limited Volatility Fixed Income and Tax-Exempt Fixed Income Funds;
.80% of the average daily net assets of the Global Fixed Income, Value, Growth,
and Small Cap Funds; 1.00% of the
74
<PAGE>
DECEMBER 31, 1995
(LOGO)
average daily net assets of the International Equity, TransEurope, Latin America
Equity and Asian Tigers Funds; 70% of the average daily net assets of the
Balanced Fund; 35% of the average daily net assets of the Treasury Money Market,
Money Market, and Tax-Exempt Money Market Funds, and .20% of the average daily
net assets of the Government Money Market Fund. The Advisor has voluntarily
agreed for an indefinite period of time, to waive a portion of its fee in an
amount equal to .10% of the average daily net assets of each of the Fixed Income
Funds, except the Global Fixed Income Fund. The Advisor has also voluntarily
agreed for an indefinite period of time, to waive a portion of its fee in an
amount equal to .15% of the average daily net assets of each of the money Market
Funds, except the Government Money Market Fund.
ABN AMRO-NSM International Funds Management B.V. has entered into a
sub-advisory agreement with the Advisor and serves as Sub-Advisor to the
International Funds. Sub-Advisory fees are paid by the Advisor.
6. INVESTMENT TRANSACTIONS
The cost of security purchases and the proceeds from the sale of securities
including U.S. Government securities, other than temporary cash investments,
during the period ended December 31, 1995 were as follows:
Purchases Sales
(000) (000)
--------- -------
Fixed Income $98,106 $61,520
Intermediate Government
Fixed Income 81,023 81,055
Tax-Exempt Fixed Income 62,732 68,892
Global Fixed Income 15,087 15,401
Balanced 49,080 80,105
Value 78,071 34,271
Growth 58,095 81,502
International Equity 35,123 6,532
Small Cap 28,227 41,211
Asian Tigers 9,226 5,377
At December 31 , 1995, the total cost of securities and the net realized
gains or losses on securities sold for Federal income tax purposes was not
materially different from amounts reported for financial reporting purposes. The
aggregate gross unrealized appreciation and depreciation on investments at
December 31, 1995, for each Fixed Income and Equity Fund is as follows:
Net
Appreciated Depreciated Unrealized
Securities Securities Appreciation
(000) (000) (000)
----------- ----------- ------------
Fixed Income $5,898 $ 47 $ 5,851
Intermediate
Government
Fixed Income 1,073 144 929
Tax-Exempt Fixed
Income 2,327 5 2,322
Global Fixed
Income 1,040 92 948
Balanced 5,929 522 5,407
Value 18,468 2,125 16,343
Growth 12,707 2,747 9,960
International Equity 12,209 1,611 10,598
Small Cap 4,205 764 3,441
Asian Tigers 2,925 944 1,981
75
<PAGE>
NOTES TO FINANCIAL STATEMENTS
At December 31, 1995 the following Funds had available realized capital
losses to offset future net capital gains through fiscal year ended:
2002 2003
(000) (000)
------- -------
Government Money Market $ 2 $ --
Tax-Exempt Money Market 10 2
Fixed Income 3,923 --
Intermediate Government Fixed Income 1,919 447
Tax-Exempt Fixed Income 2,215 307
Global Fixed Income 392 --
Asian Tigers -- 142
The market value of the Fixed Income Funds' investments will change in
response to interest rate changes and other factors. During periods of falling
interest rates, the values of fixed income securities generally rise.
Conversely, during periods of rising interest rates, the values of such
securities generally decline. Changes by recognized rating agencies in the
ratings of any fixed income security and in the ability of an issuer to make
payments of interest and principal may also affect the value of these
investments.
7. FORWARD FOREIGN CURRENCY CONTRACTS
The Global Fixed Income Fund enters into forward foreign currency exchange
contracts as hedges against portfolio positions. 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. Also,
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.
The following forward foreign currency contract was outstanding at December
31, 1995:
Global Fixed Income Fund:
In Net
Contract Exchange Unrealized
Settlement to Deliver For Depreciation
Date (000) (000) (000)
---------- ---------- -------- ------------
Foreign Currency
Sale: 03/14/96 ES 91,800 DM 1,064 $(6)
===
- ---------------------
DM German Mark
ES Spanish Peseta
8. SHAREHOLDER VOTING RESULTS (UNAUDITED)
On September 11, 1995 there was a special meeting of shareholders of the Global
Fixed Income Fund to approve the elimination of the fundamental investment
limitation concerning diversification to permit increased investments in the
securities of any single issuer. The following were the results of the vote:
For ................................1,291,064
Against ..............................277,665
Abstain ....................................0
There were no other proposals voted upon at such meeting.
76
<PAGE>
DECEMBER 31, 1995
REPORT OF INDEPENDENT AUDITORS {LOGO)
TRUSTEES AND SHAREHOLDERS:
REMBRANDT FUNDS(REGISTRATION MARK)
We have audited the accompanying statements of net assets of the Treasury Money
Market Fund, Government Money Market Fund, Money Market Fund, Tax-Exempt Money
Market Fund, Fixed Income Fund, Intermediate Government Fixed Income Fund,
Tax-Exempt Fixed Income Fund, Value Fund, Growth Fund, International Equity
Fund, and Small Cap Fund and the schedules of investments and statements of
assets and liabilities of the Global Fixed Income Fund, Balanced Fund, and Asian
Tigers Fund of Rembrandt Funds(REGISTRATION MARK), which includes the Trust and
Investor classes (the "Trust"), as of December 31, 1995, and the related
statements of operations, the statements of changes in net assets, and the
financial highlights for each of the periods presented herein. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audit.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1995 by correspondence with the Trust's custodian and brokers. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Treasury Money Market Fund, Government Money Market Fund, Money Market Fund,
Tax-Exempt Money Market Fund, Fixed Income Fund, Intermediate Government Fixed
Income Fund, Tax-Exempt Fixed Income Fund, Global Fixed Income Fund, Balanced
Fund, Value Fund, Growth Fund, International Equity Fund, Small Cap Fund, and
Asian Tigers Fund at December 31, 1995, the results of their operations, the
changes in their net assets and the financial highlights for each of the periods
presented herein, in conformity with generally accepted accounting principles.
ERNST & YOUNG LLP
Philadelphia, Pennsylvania
January 26, 1996
77
<PAGE>
DECEMBER 31, 1995
Notice to Shareholders (Unaudited)
For shareholders that do not have a December 31, 1995 taxable year end, this
notice is for informational purposes only. For shareholders with a December 31,
1995 taxable year end, please consult your tax advisor as to the pertinence of
this notice.
For the fiscal year ended December 31, 1995 the funds of the Rembrandt
Funds(REGISTRATION MARK) are designating long term capital gains and qualifying
dividend income with regard to distributions paid during the year as follows:
<TABLE>
<CAPTION>
(A) (B)
LONG TERM ORDINARY
CAPITAL GAINS INCOME TOTAL
DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS
FUND (TAX BASIS) (TAX BASIS) (TAX BASIS)
- ---- ------------- ------------- -------------
<S> <C> <C> <C>
Treasury Money Market 0% 100% 100%
Government Money Market 0% 100% 100%
Money Market 0% 100% 100%
Tax-Exempt Money Market 0% 100% 100%
Fixed Income 0% 100% 100%
Intermediate Government Fixed Income 0% 100% 100%
Tax-Exempt Fixed Income 0% 100% 100%
Global Fixed Income 0% 100% 100%
Balanced 17% 83% 100%
Value 22% 78% 100%
Growth 39% 61% 100%
International Equity 70% 30% 100%
Small Cap 43% 57% 100%
Asian Tigers 0% 100% 100%
(C) (D) (E)
</TABLE>
<TABLE>
<CAPTION>
QUALIFYING TAX EXEMPT FOREIGN
FUND DIVIDENDS(1) INTEREST TAX CREDIT
- ---- ------------- ------------- -------------
<S> <C> <C> <C>
Treasury Money Market 0% 0% 0%
Government Money Market 0% 0% 0%
Money Market 0% 0% 0%
Tax-Exempt Money Market 0% 97% 0%
Fixed Income 0% 0% 0%
Intermediate Government Fixed Income 0% 0% 0%
Tax-Exempt Fixed Income 0% 99% 0%
Global Fixed Income 0% 0% 0%
Balanced 18% 0% 0%
Value 64% 0% 0%
Growth 21% 0% 0%
International Equity 0% 0% 25%(2)
Small Cap 5% 0% 0%
Asian Tigers 0% 0% 11%(3)
<FN>
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction.
(2) Trust Class shareholders. 50% for Investor Class shareholders.
(3) Trust Class shareholders. 14% for Investor Class shareholders.
* Items (A) and (B) are based on the percentage of each fund's total
distribution.
** Item (C) is based on the percentage of ordinary income of each fund.
*** Item (D) is based on the percentage of gross income of each fund.
</FN>
</TABLE>
78
<PAGE>
Notes
79
<PAGE>
Notes
80
<PAGE>
IT'S EASY TO INVEST
IN THE REMBRANDT FUNDS
For more complete information, including information on charges and
expenses, call 1-800-443-4725. You'll receive a free investor kit,
including our prospectuses.
Please read them carefully before you invest or send money.
SERVICE FEATURES
(BULLET) Toll-free access to your account information.
(BULLET) Free telephone exchanges as often as you require.
(BULLET) Free dividend reinvestment to help build your account.
(BULLET) Free systematic withdrawal plans.
(BULLET) Free check-writing for amounts of $500 or more (on money
market accounts only).
(BULLET) You have the option of investing your personal savings,
IRA, rollover, Keogh, or SEP dollars in the Rembrandt Funds.
<PAGE>
REMBRANDT FUNDS(REGISTRATION MARK)
- ---------------------------------
ANNUAL REPORT
- ---------------------------------
December 31, 1995
MONEY MARKET FUNDS
Treasury Money Market Fund
Government Money Market Fund
Money Market Fund
Tax-Exempt Money Market Fund
FIXED INCOME FUNDS
Fixed Income Fund
Intermediate Government Fixed Income Fund
Tax-Exempt Fixed Income Fund
Global Fixed Income Fund
BALANCED FUND
Balanced Fund
EQUITY FUNDS
Value Fund
Growth Fund
International Equity Fund
Small Cap Fund
Asian Tigers Fund
For more information, call 1-800-443-4725.
INVESTMENT ADVISER
LaSalle Street Capital Management, Ltd.
10 South LaSalle Street
Suite 3701
Chicago, IL 60603
ADMINISTRATOR
SEIFinancial Management Corporation
680 East Swedesford Road
Wayne, PA 19087
DISTRIBUTOR
Rembrandt Financial Services Company
680 East Swedesford Road
Wayne, PA 19087
LEGAL COUNSEL
Morgan, Lewis & Bockius
2000 One Logan Square
Philadelphia, PA 19103
AUDITORS
Ernst & Young LLP
Two Commerce Square
2001 Market Street
Suite 4000
Philadelphia, PA 19103
(REMBRANDT LOGO)
THIS REPORT AND THE FINANCIAL STATEMENTS
CONTAINED HEREIN ARE FOR THE GENERAL INFORMATION OF THE
SHAREHOLDERS OF THE FUNDS NAMED ABOVE.
THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN A FUND UNLESS PRECEDED
OR ACCOMPANIED BY A CURRENTLY EFFECTIVE
PROSPECTUS.
REM-F-011-03
<PAGE>
