<PAGE>
[LOGO OF ABN-AMRO FUNDS APPEARS HERE]
Annual
Report
December 31, 1999
<PAGE>
<TABLE>
TABLE OF CONTENTS
<S> <C>
Letter to Shareholders............................... 1
Manager's Discussion and Analysis.................... 3
Report of Ernst & Young LLP,
Independent Auditors............................... 22
Schedule of Investments.............................. 23
Statement of Assets and Liabilities.................. 52
Statement of Operations.............................. 55
Statement of Changes in Net Assets................... 58
Financial Highlights................................. 64
Notes to Financial Statements........................ 80
</TABLE>
-----------------------------------------------------
NOT FDIC INSURED . NO BANK GUARANTEE . MAY LOSE VALUE
-----------------------------------------------------
-----------------------------------------------------
ABN AMRO is a registered service mark of ABN
AMRO Holding N.V., the ultimate parent of ABN
AMRO Asset Management (USA) Inc., the investment
advisor to the ABN AMRO Funds. All rights
reserved. ABN AMRO Funds are distributed by
Provident Distributors, Inc. which is not a
bank affiliate
-----------------------------------------------------
<PAGE>
Letter to Shareholders
Dear Shareholder:
It was a year of unexpected twists and turns as the global economy showed a
renewed vigor during 1999, in sharp contrast to the prior year.
The lowering of interest rates by central bankers across the globe in 1998 took
effect much more quickly than anticipated setting off widespread increases in
interest rates in 1999. These increased interest rates contributed to volatility
in the markets during the year, as did rapidly rising oil prices, concerns
regarding Year 2000 ("Y2K") and widespread merger activity in Europe following
the launch of the Euro.
The resurgence of the global economy in 1999, along with the continued strength
in the U.S. economy, was undeniable. Economic growth in Europe, Japan and Asia
helped the U.S. economy continue to grow at an above-average pace, with rising
incomes, strong job growth and a rising stock market that drove heavy investment
in technology and supported strong consumer spending.
The global expansion propelled international equity funds to the head of the
pack during 1999. Our flagship ABN AMRO International Equity Fund\\(US)\\, which
carries a 4-star Morningstar* rating for the 3- and 5-year periods ended
December 31, 1999 in the International Equity category (out of 1,104 and 638
funds, respectively), increased by 41.86% for the Common Shares Class and 41.20%
for the Investor Shares Class. This was well ahead of the 26.96% posted by the
Morgan Stanley Capital International Europe, Asia and Far East ("MSCI EAFE")
Index and ahead of the Lipper International Funds Average Index.
For the year ended December 31, 1999, the ABN AMRO Latin America Equity
Fund\\(US)\\ rallied by 72.41%, versus 58.89% for the MSCI Emerging Markets
Latin America Free Index and 60.21% for the Lipper Latin America Funds Average
Index. The Fund's Common Shares were a Lipper+ top quartile performer in the
Latin American category for the 1- and 3-year periods ended December 31, 1999
(out of 57 and 35 funds, respectively). Finally, during the same period, the ABN
AMRO Asian Tigers Fund(US) managed a solid 62.26% return for the Common Shares
Class and 61.77% for the Investor Shares Class. This performance was competitive
with the MSCI Asia Free ex-Japan Index and the Lipper Pacific ex-Japan Funds
Average Index, which returned 64.67% and 73.21%, respectively.
The ABN AMRO Growth Fund\\(US)\\ trailed the Standard & Poors 500 ("S&P(R)500")
Index and the Lipper Growth Funds Average during the year, 12.82% for the Common
Shares Class and 12.26% for the Investor Shares Class versus 21.03% and 38.01%
for the benchmarks, respectively. Dragged down by the poor performance of higher
quality stocks, where the Fund concentrated its holdings, as well as narrow
breadth in the overall market, the Fund's Common Shares continue to carry a
4-star Morningstar* rating for the 5-year period ended December 31, 1999 in the
Domestic Equity category (out of 2,180 funds).
Small-cap equities performed better during 1999. For the year ended December 31,
1999, the ABN AMRO Small Cap Fund\\(US)\\ (formerly the Small Cap Growth
Fund\\(US))\\ achieved a 15.88% return for the Common Shares Class and 15.95%
for the Investor Shares Class, trailing the 19.62% return of the Russell 2000
Index. Larger-cap U.S. equities continued to manage double digit returns. The
ABN AMRO Value Fund\\(US)\\ posted a 11.14% return for the Common Shares Class
and a 10.67% return for the Investor Shares Class during the year, well ahead of
the Lipper Multi-Cap Value Average Index at 7.76%.
The year also saw the expanded distribution of the Funds, with a particular
focus on the ABN AMRO International Funds, by the establishment of relationships
with the Charles Schwab & Co., Fidelity, TD Waterhouse and DATAlynx national
mutual fund supermarkets.
Just as in the markets, it was also a year of change at the Funds' Advisor, ABN
AMRO Asset Management (USA) Inc. In April of 1999, Timothy Leach, after serving
as President and CEO, resigned from the firm and was replaced by James B. Wynsma
as interim President.
In December of 1999, Delaware Management Company and Mellon Equity Associates,
LLP began serving as the sub-advisors to the ABN AMRO Small Cap Fund\\(US)\\
and the ABN AMRO Value Fund\\(US)\\, respectively. The Sub-Advisors' services
will allow the Advisor to concentrate its resources on global growth.
1
<PAGE>
Letter to Shareholders (continued)
On January 1, 2000, I was appointed President and CEO of the Advisor. For the
last two years, I have served as Executive Vice President within the Trust and
Asset Management division of our affiliate, LaSalle Bank, N.A. ("LaSalle
Bank"). Mr. Wynsma continues with the firm as Chairman.
My appointment marks a new and exciting chapter in the history of the Advisor.
These changes have been made with only one goal in mind and that is to improve
the investment performance of all of our Funds. We have designed a rigorous and
disciplined investment process to take advantage of the strengths of the firm.
Going forward, we will continue to build on our investment management strengths
under the direction of Paul Becker, Chief Investment Officer of the Advisor.
We also intend on enhancing the service levels, while continuing to expand and
the Funds' distribution network.
We are also pleased to report that there were no millennium-related issues. The
planning and testing preparations for the transition period by the Advisor,
Chase Global Investor Services, the custodian and PFPC Inc., the fund
accountant and transfer agent, proved to be adequate and provided an improved
infrastructure on which to continue operations.
Although we weathered a number of changes in 1999, we are proud of what we were
able to achieve. During the year 2000, we will continue to earn your trust and
confidence.
Sincerely,
/s/ Randall C. Hampton
Randall C. Hampton
President
ABN AMRO Funds
Note: Past performance is no guarantee of future results. Investment returns
and principal value of mutual funds will vary with market conditions, so that
shares, when redeemed, may be worth more or less than their original cost.
*Morningstar proprietary ratings are based on historical risk-adjusted
performance and may change monthly. Ratings are calculated using a fund's
average annual total returns in excess of 90-day Treasury bill returns with
appropriate fee adjustments and a risk factor that reflects fund performance
below 90-day Treasury bill returns. The top 10% of funds receive 5-stars; the
next 22.5% of funds receive 4-stars; and the next 35% receive 3-stars. All
indexes mentioned are unmanaged indexes. An individual cannot invest directly
in any index.
+Lipper rankings are based on average annual total returns only, for the
periods noted.
2
<PAGE>
DECEMBER 31, 1999
Manager's Discussion and Analysis
Money Market Funds
The U.S. bond market was under continued pressure for most of 1999. The Federal
Reserve Board (the "Fed") raised rates three times during the year, basically
erasing the easing they implemented last year addressing the U.S. credit
crisis. As we approached December, the market-place started pricing in another
increase from the Fed even though it did not occur at the December 21st meeting.
It was widely anticipated as an effort by the Fed to assure a calm Y2K. As
anticipated by most market participants, there was an additional rate increase
of 25 basis points at the last Fed meeting on February 2nd. The market has
already reflected that rate rise and continues to price in further moves.
Economic data released confirmed that the economy is still growing and there are
now new concerns for potential inflation. The market will likely focus upon the
indicators concerning the Fed such as the U.S. labor statistics as well as
growth in consumer demand. At year-end, there was some significant yield give up
in the front end of the yield curve since the Feb was pumping extra liquidity
into the banking system to address Y2K concerns, Overnight rates came down by
almost 200 basis points. We should see normalcy return to the marketplace in
mid-January. Looking forward, we will assess the market's value given the very
likely scenario of increased short-term rates.
Treasury Money Market Fund\\(US)\\
The Fund's average maturity range was in the 35 to 58 day range during the
fourth quarter as well as for most of the year. As quarter-end approached, the
average maturity was around 57 days, reflecting some purchases made by the Fund.
The portfolio was mostly laddered; however, purchases were made in December in
the one-month area to enhance the portfolio's yield while addressing the maximum
average maturity constraint of 60 days. The U.S. Treasury issued more Treasury
Bills causing attractive yields from the increased supply, which created an
advantageous investment opportunity. The Fund did not benefit from a large
exposure to cash equivalents over the quarter-end because of the low overnight
rates. However, that exposure was a deliberate attempt to help maintain
liquidity over year-end based upon a business decision by the Advisor.
Government Money Market Fund\\(US)\\
The Fund's average maturity range was 36 to 63 days for the fourth quarter.
As quarter-end approached, the average maturity was around the 56-day area. The
portfolio was mostly laddered; however, purchases were made in December to some
January and February dates to help enhance the portfolio's yield. We took
advantage of some high yielding one-month paper while maintaining high liquidity
for potential year-end withdrawals. The Fund did not benefit from a large
exposure to cash equivalents over the quarter-end because of the low overnight
rates. However, that exposure was a deliberate attempt to help maintain
liquidity over year-end based upon a business decision by the Advisor.
Money Market Fund\\(US)\\
The Fund's average maturity range was 35 to 64 days for the fourth quarter. As
quarter-end approached, the average maturity was in the 35-day area as cash
balances increased due to shareholder purchases instead of the usual year-end
withdrawals. The Fund's performance benefited by purchases made in the one and
two-month sector, which was extremely attractive because of demand for the
issuers to avoid year-end as well as anticipated higher short-term yields. We
took advantage of some high yielding one-month paper while maintaining high
liquidity. The Fund did not benefit from large exposure to cash equivalents
over the quarter-end because of the low overnight rates. However, that exposure
was a deliberate attempt to help maintain liquidity over year-end based upon a
business decision by the Advisor.
Tax-Exempt Money Market Fund\\(US)\\
The fourth quarter proved to be very interesting in the short-term tax-exempt
market due to year end liquidity concerns. The supply of short-term tax-exempt
paper dried up by the second week of December as managers locked in positions of
variable rate demand notes to assure liquidity. During this time period, we
shortened the average maturity of the Fund to a range of 30 to 40 days by
increasing our positions in floating rate demand paper. This assured us a
smooth transition over year-end.
3
<PAGE>
MANAGER'S DISCUSSION AND ANALYSIS (continued)
Looking forward, tax-exempt rates appear poised to increase in the first few
months of the new year. With the Fund at an average maturity of 34 days, we
should be able to take advantage of this rising rate environment by beginning
to extend the maturity into the 50 to 60 day range.
Investments in the ABN AMRO Money Market Funds are neither insured nor
guaranteed by the Federal Deposit Insurance Corporation or any other U.S.
government agency. Although the Funds seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
Funds.
4
<PAGE>
DECEMBER 31, 1999
Fixed Income Fund\\(US)\\
1999 was a difficult year for intermediate and long-term bonds as the bond
market suffered from the worst performance in over 5 years. During the course of
the year, the yield on the 30-year U.S. Treasury bond rose from 5.10% to over
6.47%, generating a total return of -14.78%. The sell-off in the Treasury market
resulted from the reversal of a flight-to-quality market environment (heavy
investing in Treasuries) associated with last year's international credit
crisis, and fears of inflation from high growth rates and tight labor markets
(the Federal Open Market Committee ("FOMC") raised short-term rates by a total
of 75 basis points during 1999). In the credit sectors, 10-year swap spreads
averaged 84 basis points, approximately 21 basis points wider than the prior
year. Investors were somewhat skittish about fixed income as they weighed the
effects of heavy debt issuance and greater interest rate volatility. The market
was also impacted by poor secondary liquidity, as only the largest deals in the
corporate and agency sectors commanded any significant investor interest.
At the outset of 1999, the Fund's duration was positioned at 90% of the
benchmark index, which resulted in less exposure to the rising rates in the
first half of the year. In June, the Fund reversed the duration to an overweight
position when 30-year rates were at 6.09%, based on historically cheap
valuations, few signs of inflation, and evidence of greater labor productivity.
The Fund was overweighted to spread product, primarily in corporate and asset-
backed securities, as compared with the Lehman Brothers Aggregate Bond Index.
The Fund is reducing its exposure to interest rates by neutralizing portfolio
duration. This strategy is aligned with expectations of a moderating economy,
little evidence of inflation, and a potential for higher short-term rates
resulting from the current FOMC tightening campaign. Further, the Fund seeks to
increase returns from the spread sectors by overweighting the short end of the
curve with corporate and asset-backed securities and overweight agency
securities in the long end. We believe these sectors have a comparative
advantage in their respective areas of the curve given their yield, liquidity
and quality.
COMMON SHARE CLASS
[Graph Appears Here]
<TABLE>
<CAPTION>
Label
Lipper Intermediate Investment Lehman Brothers Aggregate ABN AMRO Fixed
- Grade Debt Funds Average Index Bond Index Income Fund \\(US)\\
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1/4/93* 10000 10000 10000
- ---------------------------------------------------------------------------------------------------------
Dec-93 11050 10975 10983
- ---------------------------------------------------------------------------------------------------------
Dec-94 10651 10655 10562
- ---------------------------------------------------------------------------------------------------------
Dec-95 12474 12623 12437
- ---------------------------------------------------------------------------------------------------------
Dec-96 12882 13082 12863
- ---------------------------------------------------------------------------------------------------------
Dec-97 14008 14345 14049
- ---------------------------------------------------------------------------------------------------------
Dec-98 15052 15591 15051
- ---------------------------------------------------------------------------------------------------------
Dec-99 14863 15462 14733
- ---------------------------------------------------------------------------------------------------------
</TABLE>
INVESTOR SHARE CLASS
[Graph Appears Here]
<TABLE>
<CAPTION>
Label
Lipper Intermediate Investment Lehman Brothers Aggregate ABN AMRO Fixed
- Grade Debt Funds Average Index Bond Index Income Fund\\(US)\\
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
3/12/93* 10000 10000 10000
- -------------------------------------------------------------------------------------------------------------
Dec-93 10614 10584 10571
- -------------------------------------------------------------------------------------------------------------
Dec-94 10240 10275 10151
- -------------------------------------------------------------------------------------------------------------
Dec-95 11975 12173 11917
- -------------------------------------------------------------------------------------------------------------
Dec-96 12372 12615 12303
- -------------------------------------------------------------------------------------------------------------
Dec-97 13449 13833 13401
- -------------------------------------------------------------------------------------------------------------
Dec-98 14454 15035 14313
- -------------------------------------------------------------------------------------------------------------
Dec-99 14260 14911 13944
- -------------------------------------------------------------------------------------------------------------
* Inception Date
</TABLE>
- -------------------------------------------------------------------------------
Average Annual Average Annual
Class of Shares One-Year Return 5 Year Return Inception to Date
- -------------------------------------------------------------------------------
Common -2.11% 6.88% 5.70%
- -------------------------------------------------------------------------------
Investor -2.58% 6.55% 5.01%
- -------------------------------------------------------------------------------
For the period ended December 31, 1999. Past performance of the Fund does not
predict future results. Indexes are used for comparitive performances only. All
indexes are not managed, are not available for direct investment and, unlike all
mutual funds, they do not assess fees.
5
<PAGE>
MANAGER'S DISCUSSION AND ANALYSIS (continued)
Tax-Exempt Fixed Income Fund\\(US)\\
During the fourth quarter of 1999, yields on short and very long municipal bonds
moved upward between 20 and 25 basis points. Continued strong economic growth,
even after 75 basis points of Fed tightening, left bond market participants
greatly concerned that further Fed tightening was on the horizon during the
first quarter of 2000. The supply of new issue municipals remained moderate
right through the second week of December, offering no "scarcity value" to the
sector. Also, tax-loss selling of municipal bonds by retail clients caused the
bid-side of the market to become extremely sloppy near year-end.
During 1999, as a whole, yields on high-grade municipal bonds rose between 85
and 105 basis points, with the long end of the maturity curve experiencing the
greater yield increases. The sharp increase in rates was in sympathy with
similar increases in U.S. Treasury bond yields. Fears of a Fed tightening policy
swept through the bond markets as the U.S. economy showed remarkable strength
following the Fed's easing of interest rates in the fall of 1998. Beginning in
April of 1999, the U.S. economy began a widely unexpected surge in growth. Soon
thereafter, many foreign economies started to reverse their contractions of the
previous fall. With the threat of global recession behind them, the Fed began
raising short term interest rates to their current levels.
Within the Lehman Brothers Municipal Bond Index ("Index"), the longer the
maturity of the bond, the worse its return was in 1999. One year total returns
varied from a positive 2.92% on one year maturities to a negative 6.67% return
for bonds maturing 25 years and longer. The Fund attempts to maintain an average
maturity generally in the 10 to 13 year range. This helps to enable the Fund to
capture the majority of yield offered along the tax-exempt yield curve while
limiting price volatility. For example, the one year total return for the Common
Shares for 1999 was -2.45%, 6 basis points better than that of the 15 year
Index.
During 1999, the Fund's overweighting of high grade municipal bonds (versus the
Index) contributed positively to the Fund's relative performance. Also, the
Fund's overweighting of escrowed and pre-refunded municipal bonds added
additional outperformance. However, the Fund's premature move to longer bonds,
in the second quarter of 1999, negatively impacted its relative performance.
The Fund currently plans to maintain an equal, or neutral duration to the Index.
Although the likelihood of one or more Fed tightenings in the first half of 2000
is high, lower interest rate levels are very possible by the end of 2000. The
Fund currently focuses on holding bonds with significant call protection. We
believe that these bonds should boost the performance of the Fund, given a lower
interest rate environment at the end of the year.
A portion of income may be subject to some state and/or local taxes, and for
certain investors, it may be subject to the federal alternative minimum tax.
6
<PAGE>
DECEMBER 31, 1999
Tax-Exempt Fixed Income Fund\\(US)\\
(continued)
COMMON SHARE CLASS
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------
LABEL Lipper General Municipal Lehman Brothers Municipal ABN AMRO Tax - Exempt
Debt Index Bond Index Fixed Income Fund (US)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1/4/93* 10000 10000 10000
- ----------------------------------------------------------------------------------------------------
Dec-93 11248 11228 10856
- ----------------------------------------------------------------------------------------------------
Dec-94 10528 10648 10321
- ----------------------------------------------------------------------------------------------------
Dec-95 12327 12507 11938
- ----------------------------------------------------------------------------------------------------
Dec-96 12764 13060 12291
- ----------------------------------------------------------------------------------------------------
Dec-97 13950 14261 13442
- ----------------------------------------------------------------------------------------------------
Dec-98 14719 15185 14220
- ----------------------------------------------------------------------------------------------------
Dec-99 14033 14873 13872
- ----------------------------------------------------------------------------------------------------
</TABLE>
INVESTOR SHARE CLASS
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------
LABEL Lipper General Municipal Lehman Brothers ABN AMRO Tax - Exempt
Debt Index Municipal Bond Index Fixed Income Fund (US)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
3/9/93* 10000 10000 10000
- ----------------------------------------------------------------------------------------------------
Dec-93 10697 10711 10443
- ----------------------------------------------------------------------------------------------------
Dec-94 10002 10158 9893
- ----------------------------------------------------------------------------------------------------
Dec-95 11711 11931 11419
- ----------------------------------------------------------------------------------------------------
Dec-96 12123 12459 11727
- ----------------------------------------------------------------------------------------------------
Dec-97 13247 13605 12796
- ----------------------------------------------------------------------------------------------------
Dec-98 13973 14486 13475
- ----------------------------------------------------------------------------------------------------
Dec-99 13323 14188 13066
- ----------------------------------------------------------------------------------------------------
</TABLE>
* Inception Date
- -------------------------------------------------------------------------------
Average Annual Average Annual
Class of Shares One-Year Return 5 Year Return Inception to Date
- -------------------------------------------------------------------------------
Common -2.45% 6.09% 4.79%
- -------------------------------------------------------------------------------
Investor -3.03% 5.72% 4.00%
- -------------------------------------------------------------------------------
For the period ended December 31, 1999. Past performance of the Fund does not
predict future results. Indexes are used for comparitive performances only. All
indexes are not managed, are not available for direct investment and, unlike all
mutual funds, they do not assess fees.
7
<PAGE>
MANAGER'S DISCUSSION AND ANALYSIS (continued)
International Fixed Income Fund\\(US)\\
Currency factors dominated 1999 and the fourth quarter was no exception. After a
generally weaker dollar at the end of the third quarter, the dollar held up
quite well against the yen during the fourth quarter and appreciated against the
euro, which ended the year close to its lows. With the Fund largely in euro
denominated bonds and overweighted against the J.P. Morgan Global Non-U.S.
Government Bond Index, the Fund lost both in absolute and relative sense.
Interest rates rose almost everywhere except Japan. Though the interest
sensitivity of the Fund was below its benchmark, this was not a bond friendly
climate that helped absolute performance.
There is a growth engine accelerating in most of the important global economic
regions. Asia is recovering quickly from its 1998 crisis, Europe is gathering
steam, Japan seems definitely out of the woods and the U.S. keeps on growing.
The Fed, the Bank of England and the European Central Bank tightened monetary
policy and, particularly in Europe, there is more to come during 2000. With
short rates around 3% and both inflation and money growth moving upwards, short
rates are more likely to move to around 4%, if not higher. Bond yields moved
ahead of these likely events and ended the year close to peak levels at around
5.5% for 10 year bonds (on average) in Euroland.
At the end of the millennium, even more candidates for joining the European
Economic Union assembled in the political and economic waiting room. The Czech
Republic, Hungary and Poland are the first most likely candidates. The Baltic
states and the generally weaker Eastern European countries, like Romania and
Bulgaria and even Turkey, may join later. Joining the European Monetary Union is
a different subject though, and it will take a lot of time and effort for most
of these countries to do so and get hooked on the Euro, if they ever will.
In Japan, 10-year bonds ended the year on a positive note, at around 1.70% while
short rates remained close to zero. While the debt mountain continued to pile
up, most of that supply of bonds was absorbed by domestic financial
institutions. As long as short-term rates remain low, bonds may keep their
attraction. In addition, the Bank of Japan continues to try to stem the rise of
the yen, so as not to derail the economic recovery. In the short run, fears of
monetary tightening are absent. But ultimately, when the Japanese economy
recovers further, rates are not likely to stay so low.
The portfolio remains overweighted in Euros as we anticipate further monetary
tightening and a growth pattern that could surprise on the upside. The yen
position is slightly below neutral as we think the strongest rise may be behind
us and the authorities prefer to see the currency lower. Duration is somewhat
below benchmark for the time being, as we await more monetary tightening in
2000, before we increase exposure.
Investing in foreign securities may involve certain additional risks, including
exchange rate fluctuations, less liquidity, greater volatility and less
regulation.
8
<PAGE>
DECEMBER 31, 1999
International Fixed Income Fund\\(US)\\
(continued)
COMMON SHARE CLASS
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
Label Lipper International Income J.P Morgan Global Non-U.S ABN AMRO International
Funds Average Index Government Bond Index Fixed Income Fund \\(US)\\
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
2/7/93* 10000 10000 10000
- ---------------------------------------------------------------------------------------------------------------------
Dec-93 11709 11303 11480
- ---------------------------------------------------------------------------------------------------------------------
Dec-94 11073 11860 11311
- ---------------------------------------------------------------------------------------------------------------------
Dec-95 13115 14364 13685
- ---------------------------------------------------------------------------------------------------------------------
Dec-96 14248 15121 14071
- ---------------------------------------------------------------------------------------------------------------------
Dec-97 14195 14551 13247
- ---------------------------------------------------------------------------------------------------------------------
Dec-98 16028 17211 15253
- ---------------------------------------------------------------------------------------------------------------------
Dec-99 15166 16149 13840
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
INVESTOR SHARE CLASS
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
Label Lipper International Income J.P Morgan Global Non-U.S ABN AMRO International
Funds Average Index Government Bond Index Fixed Income Fund \\US)\\
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
4/26/93* 10000 10000 10000
- ---------------------------------------------------------------------------------------------------------------------
Dec-93 10865 10544 10397
- ---------------------------------------------------------------------------------------------------------------------
Dec-94 10306 11064 10218
- ---------------------------------------------------------------------------------------------------------------------
Dec-95 12226 13400 12331
- ---------------------------------------------------------------------------------------------------------------------
Dec-96 13226 14107 12654
- ---------------------------------------------------------------------------------------------------------------------
Dec-97 13126 13574 11875
- ---------------------------------------------------------------------------------------------------------------------
Dec-98 14840 16056 13637
- ---------------------------------------------------------------------------------------------------------------------
Dec-99 14004 15065 12320
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
* Inception Date
- --------------------------------------------------------------------------------
Average Annual Average Annual
Class of Shares One-Year Return 5 Year Return Inception to Date
- --------------------------------------------------------------------------------
Common -9.26% 4.12% 4.83%
- --------------------------------------------------------------------------------
Investor -9.66% 3.81% 3.17%
- -------------------------------------------------------------------------------
For the period ended December 31, 1999. Past performance of the Fund does not
predict future results. Indexes are used for comparitive performances only. All
indexes are not managed, are not available for direct investment and, unlike all
mutual funds, they do not assess fees.
9
<PAGE>
MANAGER'S DISCUSSION AND ANALYSIS (continued)
Balanced Fund\\(US)\\
The headline event in the first quarter of 1999 was the Dow Jones Industrial
Average ("Dow Jones") breaking through the 10,000 level on March 29. From early
March to late October, the U.S. equity market displayed considerable volatility
while making no net progress. Advances and declines of 5% or more alternated
about every two weeks as the market reacted to each major release of economic
growth and inflation and anticipated every meeting of the Fed. During this
period, equities generally reacted to activity in the fixed income markets as
10-year U.S. Treasury yields advanced from around 5% in the spring to 6% by
summer. Growth in the U.S. economy generally came in stronger than expected,
producing good corporate earnings and extremely favorable current year over
prior year comparisons. At the same time, inflation remained generally subdued.
At the end of October, stocks began advancing sharply. Equities decoupled from
fixed income, shrugging off the third short-term interest rate hike by the Fed
and an increase in 10-year Treasury yields to 6.4%. The S&P(R) 500 Index gained
more than 21% for the year.
The recent advance was dominated by the technology sector. Technology stocks,
including internet-related issues, advanced more than three times as far as the
market as a whole. According to Barron's, the 68 technology stocks in the S&P(R)
500 Index returned about 75% for 1999, their trailing price-to-earnings ratio
rising from 50 at the end of 1998 to 66 at the end of 1999. Meanwhile, the 432
other stocks in the S&P(R) 500 Index returned less than 5% for the year, their
average price/earnings multiple fell from about 26 to 24. 158 of the stocks in
the S&P(R) 500 Index outperformed the index while 342 stocks underperformed.
More than half of the stocks in the S&P(R) 500 Index had negative returns for
the year.
With interest rates rising, our longer than benchmark duration was a drag on
performance in the quarter. Likewise, our focus on fundamentals in the core
equity style did not pay off in the fourth quarter. We have refocused our fixed
income portfolio to emphasize areas where we expect to add value in the future.
We also know, from past experience, that the equity market will care about
valuation again.
To better reflect the Fund's strategy, the benchmark of the Fund is being
revised from 70% Russell 3000 Index/30% Lehman Brothers Aggregate Bond Index to
60% S&P(R) 500 Index blended with 40% Lehman Brothers Aggregate Bond Index.
10
<PAGE>
COMMON SHARE CLASS
DECEMBER 31, 1999
Balanced Fund\\(US)\\
(continued)
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
70% Russell 3000
60% S&P(R) 500 Index/ Index/30% Lehman
Lipper Flexible Portfolio 40% Lehman Brothers Brothers Aggregate ABN AMRO
Label Funds Index Aggregate Bond Index Bond Index Balanced Fund \\(US)\\
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1/4/93* 10000 10000 10000 10000
- ----------------------------------------------------------------------------------------------------------------------------
Dec-93 11129 10993 11054 10768
- ----------------------------------------------------------------------------------------------------------------------------
Dec-94 10886 10952 10971 10541
- ----------------------------------------------------------------------------------------------------------------------------
Dec-95 13657 14251 14424 12844
- ----------------------------------------------------------------------------------------------------------------------------
Dec-96 15560 16545 16882 14532
- ----------------------------------------------------------------------------------------------------------------------------
Dec-97 18520 20823 21380 17743
- ----------------------------------------------------------------------------------------------------------------------------
Dec-98 21613 25636 25876 19513
- ----------------------------------------------------------------------------------------------------------------------------
Dec-99 24073 29665 30268 21572
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
INVESTOR SHARE CLASS
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
70% Russell 3000
60% S&P(R) 500 Index/ Index/30% Lehman
Lipper Flexible Portfolio 40% Lehman Brothers Brothers Aggregate ABN AMRO
Label Funds Index Aggregate Bond Index Bond Index Balanced Fund \\(US)\\
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
3/9/93* 10000 10000 10000 10000
- ----------------------------------------------------------------------------------------------------------------------------
Dec-93 10902 10694 10811 10330
- ----------------------------------------------------------------------------------------------------------------------------
Dec-94 10663 10654 10730 10093
- ----------------------------------------------------------------------------------------------------------------------------
Dec-95 13360 13861 14107 12266
- ----------------------------------------------------------------------------------------------------------------------------
Dec-96 15224 16091 16510 13843
- ----------------------------------------------------------------------------------------------------------------------------
Dec-97 18142 20249 20909 16861
- ----------------------------------------------------------------------------------------------------------------------------
Dec-98 21155 24927 25306 18499
- ----------------------------------------------------------------------------------------------------------------------------
Dec-99 23567 28841 29601 20343
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Inception Date
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
Average Annual Average Annual
Class of Shares One-Year Return 5 Year Return Inception to Date
- --------------------------------------------------------------------------
<S> <C> <C> <C>
Common 10.55% 15.40% 11.63%
- --------------------------------------------------------------------------
Investor 9.97% 15.05% 10.99%
- --------------------------------------------------------------------------
</TABLE>
For the period ended December 31, 1999. Past performance of the Fund does not
predict future results. Indexes are used for comparitive performances only.
All indexes are not managed, are not available for direct investment and,
unlike all mutual funds, they do not assess fees.
11
<PAGE>
MANAGER'S DISCUSSION AND ANALYSIS (continued)
Value Fund\\(US)\\
The market's strength during the fourth quarter of 1999 was again marked by
leadership in growth stocks. Among large-cap stock indices, the S&P(R) 500/Barra
Growth Index returned 19.7% compared to the S&P(R) 500/Barra Value Index which
realized a total return of 9.0%. Similar style divergence during the fourth
quarter occurred within the small-cap market segment. The Russell 2000 Growth
Index increased 33.4%, significantly greater than the 1.5% total return of the
Russell 2000 Value Index during the quarter. Investors continued to reward the
advanced earnings prospects of stocks with higher-than-average price/earnings
multiples, particularly in the technology sector. To better reflect the Fund's
strategy, the benchmark of the Fund is being revised from the S&P(R) 500 Index
to the S&P(R) 500/Barra Value Index.
Recent stock market trends have created a difficult environment for many
large-cap value fund managers. Our investment philosophy is structured to
deliver consistent performance results. We manage assets with a disciplined
approach that combines a quantitative stock valuation process with careful
diversification across many industry groups. The valuation process is designed
to identify undervalued stocks by using a number of fundamental characteristics
that balance price and earnings sensitivity. We look for stocks with good
prospects for future earnings while attempting to avoid stocks we feel have
become too expensive.
<TABLE>
<CAPTION>
COMMON SHARE CLASS
- -------------------------------------------------------------------------------------------------------------------------------
Label Lipper Multi-Cap Value S&P(R) 500 Index S&P(R) 500/Barra Value Index ABN AMRO Value Fund\\(US)\\
Funds Average Index
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1/4/93* 10000 10000 10000 10000
- -------------------------------------------------------------------------------------------------------------------------------
Dec-93 11377 11006 11860 10666
- -------------------------------------------------------------------------------------------------------------------------------
Dec-94 11321 11150 11785 10666
- -------------------------------------------------------------------------------------------------------------------------------
Dec 95 14825 15335 16145 14082
- -------------------------------------------------------------------------------------------------------------------------------
Dec-96 17884 18854 19697 16959
- -------------------------------------------------------------------------------------------------------------------------------
Dec-97 22782 25142 25603 22131
- -------------------------------------------------------------------------------------------------------------------------------
Dec-98 24919 32332 29362 23340
- -------------------------------------------------------------------------------------------------------------------------------
Dec-99 26513 39133 33096 25941
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
INVESTOR SHARE CLASS
- -------------------------------------------------------------------------------------------------------------------------------
Label Lipper Multi-Cap Value S&P(R) 500 Index S&P(R) 500/Barra Value Index ABN AMRO Value Fund\\(US)\\
Funds Average Index
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
3/26/93* 10000 10000 10000 10000
- -------------------------------------------------------------------------------------------------------------------------------
Dec-93 10783 10545 10857 10177
- -------------------------------------------------------------------------------------------------------------------------------
Dec-94 10727 10684 10789 10156
- -------------------------------------------------------------------------------------------------------------------------------
Dec 95 14044 14694 14780 13378
- -------------------------------------------------------------------------------------------------------------------------------
Dec-96 16948 18066 18031 16065
- -------------------------------------------------------------------------------------------------------------------------------
Dec-97 21597 24091 23438 20916
- -------------------------------------------------------------------------------------------------------------------------------
Dec-98 23619 30980 26878 21891
- -------------------------------------------------------------------------------------------------------------------------------
Dec-99 25114 37497 30297 24227
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Inception Date
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------
Average Annual Average Annual
Class of Shares One-Year Return 5 Year Return Inception to Date
- -----------------------------------------------------------------------
<S> <C> <C> <C>
Common 11.14% 19.45% 14.61%
- -----------------------------------------------------------------------
Investor 10.67% 18.99% 13.97%
- -----------------------------------------------------------------------
</TABLE>
For the period ended December 31, 1999. Past performance of the Fund does not
predict future results. Indexes are used for comparitive performances only. All
indexes are not managed, are not available for direct investment and, unlike all
mutual funds, they do not assess fees.
12
<PAGE>
DECEMBER 31, 1999
Growth Fund\\(US)\\
Fueled by a phenomenal fourth quarter of 1999 performance, the U.S. equity
market posted better than a 20% return for its fifth straight year. Despite the
bond market's worst record in recent periods, equity sentiment benefited from
strong U.S. gross domestic product ("GDP") growth, low inflation, and a
recovering global economy. The NASDAQ Index soared over 80%, an unprecedented
return, as investors flocked to internet-related issues. Low inflation prevailed
in spite of significantly higher oil prices, as commodity costs became less of a
factor in our more service oriented economy.
After a challenging first half, the Fund outperformed the S&P(R) 500 in the
fourth quarter due to favorable sector weightings and good stock selection.
Overexposure in health care hurt performance as concerns about the political
environment and possible Medicare reform caused investor concern. High exposure
to consumer cyclicals and technology, however, more than offset this as both
sectors experienced significant rallies. Wal-Mart Stores and Home Depot surged
on strong sales reports and the announcement of new initiatives expected to
drive future growth; and Interpublic Group benefited from a strong advertising
forecast. In the technology sector, Cisco Systems, Sun Microsystems, and ADC
Telecommunications were all stellar performers as investors focused on firms
whose technology can enhance productivity in the increasingly competitive global
marketplace.
We are optimistic that the U.S. economy can continue to grow while keeping
inflation at a reasonable level. Consumer confidence should remain high due to
low unemployment and increased wealth created from the extended bull market. The
Fund's focus is on those sectors and securities exhibiting solid and consistent
growth characteristics. Forecasts predict that domestic companies will increase
their research and development spending by more than 10%. Since much of this is
related to improving technological infrastructure, firms in technology and
telecommunications should continue to prosper. We also favor those companies
with strong international franchises that should benefit from an improving
global economy and the maturing of emerging markets.
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
COMMON SHARE CLASS
- --------------------------------------------------------------------------------------------------------
Label S&P(R) 500 Index Lipper Large -Cap Growth Funds ABN AMRO Growth Fund (US)
Average Index
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1/4/93* 10000 10000 10000
- --------------------------------------------------------------------------------------------------------
Dec-93 11006 10884 10502
- --------------------------------------------------------------------------------------------------------
Dec-94 11150 10692 10287
- --------------------------------------------------------------------------------------------------------
Dec-95 15335 14267 13537
- --------------------------------------------------------------------------------------------------------
Dec-96 18854 17136 16473
- --------------------------------------------------------------------------------------------------------
Dec-97 25142 22038 20424
- --------------------------------------------------------------------------------------------------------
Dec-98 32332 29951 26598
- --------------------------------------------------------------------------------------------------------
Dec-99 39133 40670 30008
- --------------------------------------------------------------------------------------------------------
</TABLE>
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
INVESTOR SHARE CLASS
- --------------------------------------------------------------------------------------------------------
Label S&P(R) 500 Index Lipper Large -Cap Growth Funds ABN AMRO Growth Fund (US)
Average Index
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
3/8/93* 10000 10000 10000
- --------------------------------------------------------------------------------------------------------
Dec-93 10768 11071 10020
- --------------------------------------------------------------------------------------------------------
Dec-94 10909 10857 9778
- --------------------------------------------------------------------------------------------------------
Dec-95 15004 14462 12837
- --------------------------------------------------------------------------------------------------------
Dec-96 18447 17377 15585
- --------------------------------------------------------------------------------------------------------
Dec-97 24599 22313 19271
- --------------------------------------------------------------------------------------------------------
Dec-98 31634 30325 24959
- --------------------------------------------------------------------------------------------------------
Dec-99 38288 41096 28018
- --------------------------------------------------------------------------------------------------------
</TABLE>
* Inception Date
<TABLE>
<CAPTION>
- --------------------------------------------------------------------
Average Annual Average Annual
Class of Shares One-Year Return 5 Year Return Inception to Date
- --------------------------------------------------------------------
<S> <C> <C> <C>
Common 12.82% 23.88% 17.03%
- --------------------------------------------------------------------
Investor 12.26% 23.44% 16.32%
- --------------------------------------------------------------------
</TABLE>
For the period ended December 31, 1999. Past performance of the Fund does not
predict future results. Indexes are used for comparitive performances only. All
indexes are not managed, are not available for direct investment and, unlike all
mutual funds, they do not assess fees.
13
<PAGE>
MANAGER'S DISCUSSION AND ANALYSIS (Continued)
International Equity Fund\\(US)\\
In 1999, world markets rebounded admirably, buoyed by the continued Asian
recovery and record-setting technology stocks. Japan's economy finally showed
signs of life, attracting upbeat foreign investors and fueling the Nikkei Stock
Average up 36.8%. Europe also did well overall as companies continued to
restructure. As expected, we didn't see any negative impact from the "millennium
bug" as most computer systems worldwide functioned without failures. With this
dark cloud out of the way, we believe that strong company earnings should move
to the forefront in 2000.
For the year, the Fund's Common Shares gained 41.86% and the Investor Shares
gained 41.20%, outperforming the MSCI EAFE Index which returned 26.96%.
Using our global industries approach, we seek to recognize new global trends
with what we consider to be strong prospects for staying power. Our goal is to
play into these trends at an early stage, overweighting industries and companies
that show above-average predictable earnings growth for a longer period of time.
Looking at the different sectors, our focus on information technology and
wireless telecommunications worked out very well in the fourth quarter. In
particular, the semiconductor industry and the communications equipment
industries had an extremely good year, as increasing data traffic and a mobile
communications boom resulted in triple digit performance numbers for many of
these companies. Our selection in telecommunication services missed the mark
somewhat since the biggest movers were the large European telecommunication
companies, but our holdings in Nokia (2.9% of net assets) and Ericsson LM (2.5%
of net assets) (communications equipment), and STMicroelectronics (1.9% of net
assets) and Murata Manufacturing (1.7% of net assets) (semiconductors) did very
well.
During the reporting period, we avoided the cyclical sectors, such as
industrials and materials, that outperformed in the first two quarters but had a
very weak fourth quarter.
From a geographical point of view, we have continued to add to the Fund's
weighting in Japan which has been underweighted for some time, based on more
positive corporate restructuring news there. Being underweighted in Germany hurt
the Fund since Germany soared to nearly 40%, but the Fund's Japanese holdings
helped make up for that by outperforming the Japanese market as a whole.
Going forward, we plan to maintain our overweight in the information technology
sector as we see strong underlying fundamental trends causing huge demand. We
also believe that an acceleration of industrial production growth, especially in
Asia and Japan, might warrant a somewhat bigger position in the basic materials
sector.
We believe that the European health care sector will likely remain sluggish due
to an unfavorable regulatory environment, and therefore, we expect to remain
neutral to underweighted in this sector. The financial sector will likely remain
under pressure from interest rate hike fears, so we expect to look for the less
interest rate-sensitive sectors like life insurance and asset management.
We plan to focus on industry trends, yet keep our eyes on region-specific
factors. For the Asia Pacific region (ex-Japan), we remain neutral against an
improved outlook, one that we believe is already priced into the markets. We
plan to maintain a slight overweighting in Europe, especially in the Euro
countries, as we see economic growth accelerating again as companies continue to
restructure.
Investing in foreign securities may involve certain additional risks, including
exchange rate fluctuations, less liquidity, greater volatility and less
regulation.
14
<PAGE>
DECEMBER 31, 1999
International Equity Fund\\(US)\\
(continued)
COMMON SHARE CLASS
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
LABEL Lipper International Funds Morgan Stanley MSCI EAFE ABN AMRO International
Average Index Index Equity Fund\\(US)\\
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
1/4/93* 10000 10000 10000
- ---------------------------------------------------------------------------------------------------
Dec-93 13616 13256 12626
- ---------------------------------------------------------------------------------------------------
Dec-94 13542 14287 13045
- ---------------------------------------------------------------------------------------------------
Dec-95 14999 15888 14875
- ---------------------------------------------------------------------------------------------------
Dec-96 16930 16849 16375
- ---------------------------------------------------------------------------------------------------
Dec-97 17916 17149 17122
- ---------------------------------------------------------------------------------------------------
Dec-98 20266 20578 21476
- ---------------------------------------------------------------------------------------------------
Dec-99 27907 26127 30465
- ---------------------------------------------------------------------------------------------------
</TABLE>
INVESTOR SHARE CLASS
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
LABEL Lipper International Funds Morgan Stanley MSCI EAFE ABN AMRO International
Average Index Index Equity Fund\\(US)\\
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
4/12/93* 10000 10000 10000
- ---------------------------------------------------------------------------------------------------
Dec-93 12563 11837 11543
- ---------------------------------------------------------------------------------------------------
Dec-94 12473 12758 11898
- ---------------------------------------------------------------------------------------------------
Dec-95 13808 14188 13539
- ---------------------------------------------------------------------------------------------------
Dec-96 15572 15046 14872
- ---------------------------------------------------------------------------------------------------
Dec-97 16505 15313 15508
- ---------------------------------------------------------------------------------------------------
Dec-98 18664 18375 19366
- ---------------------------------------------------------------------------------------------------
Dec-99 25796 23330 27344
- ---------------------------------------------------------------------------------------------------
</TABLE>
*Inception Date
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------
Average Annual Average Annual
Class of Shares One-Year Return 5 Year Return Inception to Date
- -----------------------------------------------------------------------
<S> <C> <C> <C>
Common 41.86% 18.49% 17.28%
- -----------------------------------------------------------------------
Investor 41.20% 18.11% 16.15%
- -----------------------------------------------------------------------
</TABLE>
For the period ended December 31, 1999. Past performance of the Fund does not
predict future results. Indexes are used for comparitive performances only. All
indexes are not managed, are not available for direct investment and, unlike all
mutual funds, they do not assess fees.
15
<PAGE>
MANAGER'S DISCUSSION AND ANALYSIS (continued)
Small Cap Fund\\(US)\\
(Formerly Small Cap Growth Fund\\(US)\\)
The fourth quarter of 1999 was a strong one for most of the major equity
indexes. Large-cap equities delivered an exceptional total return of 14.9% based
on the S&P(R) 500, only to be outdone by the 19.6% return of the Russell 2000
Index, the proxy for small-cap equities. As strong as those indexes were, they
paled in comparison to the 48% return of the NASDAQ composite. What was perhaps
most notable about these returns is that they occurred while interest rates were
rising throughout the quarter, a situation that historically has not led to such
superior returns.
Toward the end of the fourth quarter, management of the Fund was shifted to
Delaware Management Company. Assets in the Fund are being invested in a more
balanced strategy among growth and value equities. This approach is expected to
reduce the overall volatility of the Fund while at the same time giving
management the flexibility to maintain significant exposure to the higher
growing segments of the economy. The result is a fund that is well diversified
and is focusing in all segments of the small-cap market. In the future, we will
compare the Fund's performance to the Russell 2000 Index, not the Russell 2000
Growth Index, to reflect the new balanced approach.
We are optimistic on the overall market for small-cap equities. Although an
advance in the Russell 2000 Index on the last day of 1999 theoretically meant
that small-caps outperformed large-caps for the first time in six years, the
equities that performed well during the year were limited in number. The much
talked about "narrowness of the market" was evident in the small-cap sector. In
particular, the technology sector of the market was the dominant investment
performer throughout the year, masking poor performance from several sectors. As
a result, most equities declined during the year, leading to a situation of
plentiful opportunities to buy stocks at low historical valuations or at
discounts to their expected growth rates.
Small company stocks may be subject to a higher degree of market risk than the
securities of more established companies because they tend to be more volatile
and less liquid.
COMMON SHARE CLASS
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
ABN AMRO Small Cap Russell 2000 Russell 2000 Growth Lipper Small-Cap Growth
Label Fund \\(US)\\ Index Index Funds Average Index
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1/4/93* 10000 10000 10000 10000
- ----------------------------------------------------------------------------------------------------------------------------
Dec-93 10279 11888 11336 11694
- ----------------------------------------------------------------------------------------------------------------------------
Dec-94 9635 11671 11060 11624
- ----------------------------------------------------------------------------------------------------------------------------
Dec-95 12730 14992 14494 15910
- ----------------------------------------------------------------------------------------------------------------------------
Dec-96 15202 17465 16126 18646
- ----------------------------------------------------------------------------------------------------------------------------
Dec-97 17619 21370 18214 21019
- -----------------------------------------------------------------------------------------------------------------------------
Dec-98 16470 20826 18438 21539
- -----------------------------------------------------------------------------------------------------------------------------
Dec-99 19085 25253 26382 33040
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
INVESTOR SHARE CLASS
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Lipper Small-Cap Growth Russell 2000 Growth Russell 2000 ABN AMRO Small Cap
Label Funds Average Index Index Index Fund \\(US)\\
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
4/12/93* 10000 10000 10000 10000
- ---------------------------------------------------------------------------------------------------------------------
Dec-93 11632 11543 11401 10753
- ---------------------------------------------------------------------------------------------------------------------
Dec-94 11568 11262 11193 10050
- ---------------------------------------------------------------------------------------------------------------------
Dec-95 15797 14758 14377 13239
- ---------------------------------------------------------------------------------------------------------------------
Dec-96 18532 16420 16749 15779
- ---------------------------------------------------------------------------------------------------------------------
Dec-97 20854 18546 20494 18217
- ---------------------------------------------------------------------------------------------------------------------
Dec-98 21306 18774 19972 16896
- ---------------------------------------------------------------------------------------------------------------------
Dec-99 32247 26864 24218 19590
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
* Inception Date
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Average Annual Average Annual
Class of Shares One-Year Return 5 Year Return Inception to Date
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Common 15.88% 14.65% 9.69%
- --------------------------------------------------------------------------------
Investor 15.95% 14.28% 10.52%
- --------------------------------------------------------------------------------
</TABLE>
For the period ended December 31, 1999. Past performance of the Fund does not
predict future results. Indexes are used for comparitive performances only. All
indexes are not managed, are not available for direct investment and, unlike all
mutual funds, they do not assess fees.
16
<PAGE>
DECEMBER 31, 1999
Real Estate Fund\\(US)\\
Real estate stocks went on a roller coaster ride this year. Noted value investor
Warren Buffet twice put his backing behind the real estate sector, leading to
rallies. The first rally in April/May was short lived. The most recent
acknowledgement from Buffet, a stock tip in a wallet auctioned for charity,
started a rally in late December that continued through year-end. Real estate
stock prices remained below their net asset values and offered an average yield
of 8.2% as 1999 closed. We continue to believe that these stocks are undervalued
and offer attractive returns to long term investors.
Fundamentals in real estate remain strong as new supply is in check with only
pockets of overbuilding. Increasing interest rates will add to development costs
and should prevent speculative or marginal new projects. Annual rental growth
remains ahead of inflation and rate increases for renewal tenants are quite
strong. Occupancy in the office and industrial sectors has slipped, however,
only slightly. The major office markets have little, if any, new construction
and, if the economic expansion continues, demand is likely to exceed supply. The
much touted threat of e-commerce did not diminish consumer attraction to
traditional malls and shopping centers during the holiday season, which, we
believe, should fuel strong rental growth rates in 2000. Rising interest rates
will also play a pivotal role in the apartment sector, making home ownership
less affordable and keeping tenants in the rental pool longer.
During 1999, we continued our focus again on larger cap, growth oriented real
estate companies. Our sector focus was on the office, diversified, manufactured
housing and retail sectors. We maintained an underweight position in factory
outlet, industrial and net lease sectors. During the fourth quarter, we moved to
a neutral position in apartments. Stock selection in these sectors played the
largest role in our performance during the year.
Going forward into 2000, we believe that the first half of the year will be a
period of stabilization for real estate securities. It is in the second half of
the year that we believe stock price appreciation will occur as investors
refocus on the sector and realize the growth opportunities and relative value
represented. To better reflect the Fund's strategy, the benchmark of the Fund is
being revised from the NAREIT Equity Index to the Morgan Stanley REIT Index.
Real Estate Funds may be subject to a higher degree of market risk than
diversified funds because of concentration in a specific industry sector or
geographic sector. Risks also include declines in the value of real estate,
general and economic conditions, changes in the value of underlying property and
defaults by borrowers.
17
<PAGE>
MANAGER'S DISCUSSION AND ANALYSIS (continued)
Real Estate Fund\\(US)\\
(continued)
COMMON SHARE CLASS
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Morgan Stanley REIT ABN AMRO Real Estate
Label Lipper Real Estate Index NAREIT Equity Index Index Fund\\(US)\\
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
12/31/ 97 10000 10000 10000 10000
- --------------------------------------------------------------------------------------------------------------------------
Mar - 98 10112 9953 9928 9893
- --------------------------------------------------------------------------------------------------------------------------
Jun - 98 9545 9496 9492 9516
- --------------------------------------------------------------------------------------------------------------------------
Sep - 98 8368 8497 8490 8728
- --------------------------------------------------------------------------------------------------------------------------
Dec - 98 8461 8249 8310 8721
- --------------------------------------------------------------------------------------------------------------------------
Mar - 99 8062 7851 7910 8423
- --------------------------------------------------------------------------------------------------------------------------
Jun - 99 8997 8643 8694 9264
- --------------------------------------------------------------------------------------------------------------------------
Sep - 99 8171 7948 7991 8333
- --------------------------------------------------------------------------------------------------------------------------
Dec - 99 8136 7868 7932 8431
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
INVESTOR SHARE CLASS
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Morgan Stanley REIT ABN AMRO Real Estate
Label Lipper Real Estate Index NAREIT Equity Index Index Fund \\(US)\\
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
10/7/98 10000 10000 10000 10000
- -------------------------------------------------------------------------------------------------------------------------
Dec - 98 10099 9708 9788 10735
- -------------------------------------------------------------------------------------------------------------------------
Mar - 99 9640 9240 9317 10353
- -------------------------------------------------------------------------------------------------------------------------
Jun - 99 10772 10172 10240 11377
- -------------------------------------------------------------------------------------------------------------------------
Sep - 99 9777 9354 9412 10221
- -------------------------------------------------------------------------------------------------------------------------
Dec - 99 9769 9260 9342 10313
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Inception Date
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Average Annual Average Annual
Class of Shares One-Year Return 5 Year Return Inception to Date
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Common -3.33% N/A -8.17%
- --------------------------------------------------------------------------------
Investor -3.93% N/A 2.53%
- --------------------------------------------------------------------------------
</TABLE>
For the period ended December 31, 1999. Past performance of the Fund does not
predict future results. Indexes are used for comparitive performances only. All
indexes are not managed, are not available for direct investment and, unlike all
mutual funds, they do not assess fees.
18
<PAGE>
DECEMBER 31, 1999
Asian Tigers Fund\\(US)\\
In 1999, the Asian Tigers Fund benefited from significant recovery in the
region's economies and stock markets. This can be attributed to four major
factors: ongoing strength in developed countries such as those in the
Organization for Economic Cooperation and Development (OECD); a pick-up in
intra-Asian trade; the return of consumer confidence after a period of malaise
during the last two years; and sample doses of liquidity, both from
international investors and domestic sources.
Equity markets were also supported by the record-setting performance of key
international indices such as the Dow Jones and NASDAQ in the U.S. and the
European bourses. For the year, the Fund's Common Shares returned 62.26% and the
Investor Shares returned 61.77%, compared to the benchmark MSCI All Asia Free
ex-Japan Index gain of 64.67%. Asian markets that outperformed the benchmark
included Indonesia (up by 93%), Korea (up 92%), and India (up 87%).
Interestingly, the fourth quarter saw a significant upward movement. The MSCI
regional benchmark registered an increase of more than 22% over the fourth
quarter 1998 return. The frenzied chase for technology-related stocks after
persistent records on NASDAQ is one reason for this upswing. Another is the
ample supply of liquidity as Y2K approached.
Certain technology companies, particularly internet-related companies, with no
clear signs of earnings in the medium term enjoyed significant outperformance of
the "Old Economy" stocks. The Fund invested in a number of these technology
opportunities, particularly in Korea and India. However, we stayed away from
other holdings because of liquidity concerns and market capitalization
limitations.
The Fund did, however, benefit from country allocation decisions favoring India
and Korea, two of the top performers in the MSCI Index, and from a neutral
stance in markets such as Hong Kong (68.8%) and Singapore (78%). The Fund's
underweightings in less impressive performers such as the Philippines (8.9%)
also helped allow more of its assets to be devoted to the strongest markets.
Going forward, we plan to keep a close eye on technology stocks in overseas
markets, as movements there will likely play a large part in market sentiment.
Higher interest rates seem likely in the U.S. and Europe, so we expect to
continue to closely monitor actions by the Fed and other central banks in order
to gauge the likely impact on investor sentiment.
That said, we remain optimistic about what we believe will be the continued
recovery of the Asian economies in 2000. The ongoing strength in external demand
from the U.S., Europe and Japan, coupled with an improvement in domestic
consumer sentiment, should provide support for an increase in corporate earnings
in Asian companies.
Investing in foreign securities may involve certain additional risks, including
exchange rate fluctuations, less liquidity, greater volatility and less
regulation.
19
<PAGE>
MANAGER'S DISCUSSION AND ANALYSIS (continued)
Asian Tigers Fund\\(US)\\
(continued)
COMMON SHARE CLASS
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
LABEL Lipper Pacific ex-Japan MSCI All-Asia Free ex-Japan ABN AMRO Asian Tigers
Funds Average Index Index Fund\\(US)\\
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
1/3/94* 10000 10000 10000
- -------------------------------------------------------------------------------------------------------------------------
Dec-94 8314 8306 9498
- -------------------------------------------------------------------------------------------------------------------------
Dec-95 8901 8639 10600
- -------------------------------------------------------------------------------------------------------------------------
Dec-96 9905 9506 12142
- -------------------------------------------------------------------------------------------------------------------------
Dec-97 5992 5675 7774
- -------------------------------------------------------------------------------------------------------------------------
Dec-98 5397 5233 6890
- -------------------------------------------------------------------------------------------------------------------------
Dec-99 9491 8617 11180
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
INVESTOR SHARE CLASS
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
LABEL Lipper Pacific ex-Japan MSCI All-Asia Free ABN AMRO Asian Tigers
Funds Average Index ex-Japan Index Fund\\(US)\\
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
LABEL
- ---------------------------------------------------------------------------------------------------------------------------
1/12/94* 10000 10000 10000
- ---------------------------------------------------------------------------------------------------------------------------
Dec-94 8314 8306 9481
- ---------------------------------------------------------------------------------------------------------------------------
Dec-95 8901 8638 10541
- ---------------------------------------------------------------------------------------------------------------------------
Dec-96 9905 9506 12039
- ---------------------------------------------------------------------------------------------------------------------------
Dec-97 5992 5674 7675
- ---------------------------------------------------------------------------------------------------------------------------
Dec-98 5397 5233 6763
- ---------------------------------------------------------------------------------------------------------------------------
Dec-99 9491 8617 10940
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Inception Date
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Average Annual Average Annual
Class of Shares One-Year Return 5 Year Return Inception to Date
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Common 62.26% 3.32% 1.88%
- --------------------------------------------------------------------------------
Investor 61.77% 2.90% 1.52%
- --------------------------------------------------------------------------------
</TABLE>
For the period ended December 31, 1999. Past performance of the Fund does not
predict future results. Indexes are used for comparitive performances only. All
indexes are not managed, are not available for direct investment and, unlike all
mutual funds, they do not assess fees.
20
<PAGE>
DECEMBER 31, 1999
Latin America Equity Fund\\(US)\\
Latin American equity markets had a good performance in 1999, as the MSCI
Emerging Markets Latin America Free Index surged 58.89%. Most of the returns
came in the last quarter of the year when telecommunications and technology
related companies drove the markets up. However, 1999 was not an easy year, when
one looks at the total performance. There was a lot of volatility and some
considerable differences in performance across the markets.
Mexico was the best performing market due to its good macro economic
fundamentals and its dependence on the U.S. The underweighting of the Fund in
this market did not help performance, though stock picking partially offset
this. We believe the Mexican market should continue performing well, and despite
relatively high valuations, we still like telecommunications and consumer
related companies in this country.
Brazil was the second best performing market despite the steep devaluation of
the currency in January. The overweighting of the Fund in this market was a
negative in the first half of the year, but stock selection and the strong
performance of this market in the last quarter contributed to the outperformance
of the Fund. We remain positive on the prospects for Brazil. Interest rates
still have room to come down further (they are at 19% now), inflation remains
under control and there is a clear improvement in the fiscal situation. These
factors have triggered local investors to shift to equities.
For Latin America as a whole, we remain positive for 2000 despite the strong
movement in the last 3 months. We believe that the region should benefit from a
recovery in commodities prices; a pick up in GDP growth (around 3.5% on
average); lower cost of capital; and lower internal interest rates in the major
economies. In our view, the two biggest risks remain a setback on the political
front in Brazil, delaying the fiscal stabilization or a steep correction in the
U.S. market.
Investing in foreign securities may involve certain additional risks, including
exchange rate fluctuations, less liquidity, greater volatility and less
regulation.
COMMON SHARE CLASS
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------
MSCI Emerging Markets ABN AMRO Latin
Lipper Latin America Funds Latin America Free America Equity
LABEL Average Index Index Fund\\(US)\\
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
7/1/96* 10000 10000 10000
- ----------------------------------------------------------------------------------------------------
Dec-96 10406 10397 10240
- ----------------------------------------------------------------------------------------------------
Dec-97 13166 13686 13875
- ----------------------------------------------------------------------------------------------------
Dec-98 8025 8881 8835
- ----------------------------------------------------------------------------------------------------
Dec-99 12880 14111 15232
- ----------------------------------------------------------------------------------------------------
</TABLE>
* Inception Date
- -----------------------------------------------------------------------------
Average Annual Average Annual
Class of Shares One-Year Return 5 Year Return Inception to Date
- -----------------------------------------------------------------------------
Common 72.41% N/A 12.74%
- -----------------------------------------------------------------------------
For the period ended December 31, 1999. Past performance of the Fund does not
predict future results. Indexes are used for comparitive performances only. All
indexes are not managed, are not available for direct investment and, unlike all
mutual funds, they do not assess fees.
21
<PAGE>
Report of Ernst & Young LLP, Independent Auditors
To the Shareholders and Board of Trustees of ABN AMRO Funds:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of the Treasury Money Market Fund\\(US)\\,
Government Money Market Fund\\(US)\\, Money Market Fund\\(US)\\, Tax-Exempt
Money Market Fund\\(US)\\, Fixed Income Fund\\(US)\\, Tax-Exempt Fixed Income
Fund\\(US)\\, International Fixed Income Fund\\(US)\\, Balanced Fund\\(US)\\,
Value Fund\\(US)\\, Growth Fund\\(US)\\, Small Cap Fund\\(US)\\, International
Equity Fund/(US)/, Real Estate Fund(US), Asian Tigers Fund\\(US)\\, and Latin
America Equity Fund\\(US)\\ (collectively the "Funds"), fifteen of the nineteen
funds comprising the ABN AMRO Funds as of December 31, 1999, and the related
statements of operations, changes in net assets, and financial highlights for
each of the periods indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. 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
financial statements. Our procedures included confirmation of securities owned
as of December 31, 1999 by correspondence with the custodian and brokers, or by
other appropriate auditing procedures where replies from brokers were not
received. 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 each
of the respective portfolios constituting ABN AMRO Funds at December 31, 1999,
the results of their operations, the changes in their net assets, and the
financial highlights for each of the periods indicated therein, in conformity
with accounting principles generally accepted in the United States.
Ernst & Young LLP
Boston, Massachusetts
February 11, 2000
22
<PAGE>
DECEMBER 31, 1999
Schedule of Investments
Treasury Money Market Fund\\(US)\\
[PIE CHART]
Repurchase Agreements and
Net Other Assets and Liabilities 45.2%
U.S. Treasury Obligations 54.8%
% of Total Net Assets
<TABLE>
<CAPTION>
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 54.8%
U.S. Treasury Bills (A)
5.340%, 01/13/00................................. $25,000 $24,956
3.900%, 01/20/00................................. 20,000 19,959
5.045%, 01/27/00................................. 25,000 24,909
U.S. Treasury Notes
7.750%, 01/31/00................................. 25,000 25,052
5.875%, 02/15/00................................. 21,000 21,025
6.875%, 03/31/00................................. 25,000 25,086
6.375%, 05/15/00................................. 10,000 10,053
6.125%, 07/31/00................................. 5,000 5,023
6.000%, 08/15/00................................. 5,000 5,017
6.250%, 08/31/00................................. 5,000 5,022
4.000%, 10/31/00................................. 10,000 9,869
5.750%, 11/15/00................................. 10,000 9,997
-------
Total U.S. Treasury Obligations
(Cost $185,968).................................... 185,968
REPURCHASE AGREEMENTS - 44.9%
J.P. Morgan
2.850%, dated 12/31/99, matures
01/03/00, repurchase price
$61,386,710 (collateralized by
U.S. Treasury Instruments, total
market value: $62,599,761)...................... $ 61,372 $ 61,372
Morgan Stanley
2.500%, dated 12/31/99, matures
01/03/00, repurchase price
$10,624,365 (collateralized by
U.S. Treasury Instruments, total
market value: $10,891,808)...................... 10,622 10,622
Prudential Securities
2.750%, dated 12/31/99, matures
01/03/00, repurchase price
$10,014,421 (collateralized by
U.S. Treasury Instruments, total
market value: $10,213,098)...................... 10,012 10,012
Warburg
2.850%, dated 12/31/99, matures
01/03/00, repurchase price
$70,640,060 (collateralized by
U.S. Treasury Instruments, total
market value: $72,038,920)...................... 70,623 70,623
---------
Total Repurchase Agreements
(Cost $152,629)................................... 152,629
---------
Total Investments - 99.7%
(Cost $338,597)................................... 338,597
---------
Net Other Assets and Liabilities - 0.3%............. 1,005
---------
Total Net Assets - 100.0%........................... $339,602
=========
</TABLE>
- --------------------------------------------------------
(A) Rate noted represents annualized discount yield at time of purchase.
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
Schedule of Investments
Government Money Market Fund\\(US)\\
[PIE CHART]
Repurchase Agreement and
Net Other Assets and Liabilities
39.2%
U.S. Government
Agency Obligations
% of Total Net Assets 60.8%
<TABLE>
<CAPTION>
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT
AGENCY OBLIGATIONS - 60.8%
Fannie Mae Discount Note (A)
5.760%, 02/17/00....................... $ 22,502 $ 22,333
5.480%, 03/21/00....................... 10,000 9,878
Fannie Mae MTN
4.990%, 02/22/00....................... 10,000 9,985
5.100%, 03/16/00....................... 5,000 5,000
4.970%, 04/12/00....................... 4,000 4,000
4.980%, 04/20/00....................... 5,000 4,999
5.620%, 08/09/00....................... 6,000 5,995
5.440%, 09/01/00....................... 7,800 7,776
5.760%, 10/02/00....................... 4,775 4,770
Federal Farm Credit Bank
5.800%, 10/02/00....................... 10,000 9,998
Federal Farm Credit Bank Discount
Note (A)
5.740%, 01/19/00....................... 23,650 23,582
5.740%, 02/04/00....................... 15,435 15,351
Federal Home Loan Bank
4.790%, 02/04/00....................... 5,000 4,999
4.910%, 02/09/00....................... 10,000 10,000
4.950%, 02/17/00....................... 5,000 4,999
5.000%, 02/24/00....................... 5,000 4,999
5.160%, 03/08/00....................... 10,000 9,999
4.970%, 04/20/00....................... 10,000 9,998
5.415%, 06/14/00....................... 8,000 7,999
5.710%, 08/09/00....................... 3,330 3,327
6.050%, 11/03/00....................... 8,000 8,004
Federal Home Loan Bank Discount
Note (A)
5.600%, 01/19/00....................... 20,000 19,942
5.520%, 02/09/00....................... 14,759 14,671
5.520%, 03/31/00....................... 10,000 9,862
U.S. GOVERNMENT
AGENCY OBLIGATIONS (continued)
Freddie Mac Discount Note (A)
5.520%, 02/03/00....................... $ 7,675 $ 7,636
5.550%, 02/24/00....................... 55,000 54,538
5.540%, 03/16/00....................... 10,000 9,885
5.481%, 03/23/00....................... 10,000 9,875
5.230%, 07/06/00....................... 10,000 9,728
5.260%, 07/17/00....................... 10,000 9,711
5.486%, 08/01/00....................... 7,000 6,773
-----------
Total U.S. Government Agency Obligations
(Cost $340,612).......................... 340,612
-----------
REPURCHASE AGREEMENTS - 39.3%
J.P. Morgan
2.960%, dated 12/31/99, matures
01/03/00, repurchase price
$70,166,674 (collateralized by
U.S. Government Agency
Instruments, total market
value: $71,552,358).................... 70,149 70,149
Morgan Stanley
3.000%, dated 12/31/99, matures
01/03/00, repurchase price
$20,204,860 (collateralized by
U.S. Government Agency
Instruments, total market
value: $20,604,472).................... 20,200 20,200
Prudential Securities
2.800%, dated 12/31/99, matures
01/03/00, repurchase price
$109,974,562 (collateralized by
U.S. Government Agency
Instruments, total market
value: $112,148,580)................... 109,949 109,949
Warburg
2.960%, dated 12/31/99, matures
01/03/00, repurchase price
$20,171,672 (collateralized by
U.S. Government Agency
Instruments, total market
value: $20,572,954).................... 20,167 20,167
-----------
Total Repurchase Agreements
(Cost $220,465)........................ 220,465
-----------
Total Investments - 100.1%
(Cost $561,077)........................ 561,077
-----------
Net Other Assets and Liabilities - (0.1)%.. (526)
-----------
Total Net Assets - 100.0%.................. $ 560,551
===========
</TABLE>
______________________________________________
(A) Rate noted represents annualized discount yield at the time of purchase.
MTN Medium Term Note
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
DECEMBER 31, 1999
Schedule of Investments
Money Market Fund\\(US)\\
[PIE CHART]
Bank Notes Commercial Paper
4.6% 36.9%
Certificates of Deposit
25.9%
Repurchase Agreements and
Net Other Assets and Liabilities
32.6%
% of Total Net Assets
<TABLE>
<CAPTION>
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL PAPER (A) - 36.9%
American Express Credit
6.400%, 01/18/00........................ $ 50,000 $ 49,849
Associates First Capital
5.900%, 01/26/00........................ 30,000 29,877
Bear Stearns
5.810%, 03/09/00........................ 15,000 14,835
5.810%, 03/23/00........................ 15,000 14,801
Blue Ridge Asset Funding
6.276%, 01/18/00........................ 31,000 30,908
6.750%, 01/20/00........................ 9,720 9,685
Centric Capital
5.200%, 01/06/00........................ 17,500 17,487
Chase Manhattan
5.450%, 01/31/00........................ 30,000 29,864
Citicorp
5.920%, 01/27/00........................ 25,000 24,893
General Electric Capital
5.270%, 01/24/00........................ 15,000 14,950
5.420%, 01/27/00........................ 10,000 9,961
5.760%, 02/17/00........................ 15,000 14,887
5.870%, 02/24/00........................ 15,000 14,868
Goldman Sachs Group
6.140%, 02/28/00........................ 20,000 19,802
Merrill Lynch & Co.
5.870%, 01/31/00........................ 20,000 19,902
5.980%, 02/03/00........................ 25,000 24,863
Morgan (J.P.) & Co.
5.313%, 01/19/00........................ 20,000 19,946
Quincy Capital
6.270%, 01/13/00........................ 15,000 14,969
Receivables Capital
6.350%, 01/18/00........................ 15,855 15,807
5.900%, 01/27/00........................ 15,000 14,936
COMMERCIAL PAPER (continued)
Unifunding
5.850%, 02/10/00........................ $ 25,000 $ 24,838
Variable Funding Capital
5.930%, 01/20/00........................ 30,000 29,906
5.650%, 02/16/00........................ 25,000 24,820
Wells Fargo
5.950%, 02/10/00........................ 25,000 24,835
----------
Total Commercial Paper
(Cost $511,489)........................... 511,489
----------
CERTIFICATES OF DEPOSIT - 25.9%
Bank of Montreal
5.090%, 04/17/00........................ 10,000 9,999
Bank of Nova Scotia (NY)
6.000%, 02/01/00........................ 40,000 40,000
Barclays Bank (NY)
5.610%, 06/14/00........................ 12,000 11,998
Bayerische HypoVereinsbank
5.100%, 04/12/00........................ 15,000 15,000
Bayerische Landesbank (NY)
5.120%, 02/23/00........................ 20,000 19,999
5.115%, 03/21/00........................ 10,000 9,996
Canadian Imperial Bank
6.200%, 08/01/00........................ 18,000 18,017
Deutsche Bank (NY)
5.020%, 01/12/00........................ 15,000 15,000
5.060%, 04/17/00........................ 10,000 9,999
6.010%, 09/05/00........................ 8,000 7,998
Harris Trust & Savings
6.200%, 01/10/00........................ 15,000 15,000
Lloyds Bank
6.000%, 08/14/00........................ 11,000 10,997
Regions Bank (AL)
5.550%, 01/10/00........................ 25,000 25,000
5.870%, 01/12/00........................ 15,000 15,000
5.820%, 02/22/00........................ 15,000 15,000
Royal Bank of Canada (NY)
4.970%, 02/02/00........................ 15,000 15,000
4.970%, 02/03/00........................ 10,000 10,000
Societe Generale (NY)
5.025%, 01/14/00........................ 13,000 13,000
Toronto Dominion Bank (NY)
6.405%, 01/24/00........................ 30,000 30,000
5.000%, 02/04/00........................ 10,000 10,000
5.180%, 02/29/00........................ 10,000 9,999
Union Bank of Switzerland (NY)
5.400%, 05/30/00........................ 12,000 11,993
5.760%, 07/05/00........................ 20,000 19,996
----------
Total Certificates of Deposit
(Cost $358,991)..................... 358,991
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
Schedule of Investments
<TABLE>
<CAPTION>
Face Market
Description Amount (000) Value (000)
- ----------------------------------------------------------------------
<S> <C> <C>
BANK NOTES - 4.6%
Bank of America
6.030%, 02/22/00......................... $ 20,000 $ 19,994
Fifth Third Bancorp
5.970%, 01/27/00......................... 25,000 25,000
FNB Chicago
6.015%, 08/14/00......................... 18,500 18,496
----------
Total Bank Notes
(Cost $63,490)............................. 63,490
----------
REPURCHASE AGREEMENTS - 32.2%
J.P. Morgan
3.020%, dated 12/31/99, matures
01/03/00, repurchase price
$182,019,835 (collateralized by
U.S. Government Agency
Instruments, total market
value: $185,613,513)..................... 181,974 181,974
Morgan Stanley
3.000%, dated 12/31/99, matures
01/03/00, repurchase price
$59,289,974 (collateralized by
U.S. Government Agency
Instruments, total market
value: $60,461,022)...................... 59,275 59,275
Prudential Securities
2.800%, dated 12/31/99, matures
01/03/00, repurchase price
$140,722,497 (collateralized by
U.S. Government Agency
Instruments, total market
value: $143,504,098)..................... 140,690 140,690
Warburg
3.020%, dated 12/31/99, matures
01/03/00, repurchase price
$64,281,519 (collateralized by
U.S. Treasury Instrument,
total market value: $65,550,911)......... 64,265 64,265
----------
Total Repurchase Agreements
(Cost $446,204)............................ 446,204
----------
Total Investments - 99.6%
(Cost $1,380,174).......................... 1,380,174
----------
Net Other Assets and Liabilities - 0.4%..... 5,604
----------
Total Net Assets - 100.0%................... $1,385,778
==========
</TABLE>
____________________
(A) Rate noted represents annualized discount yield at the time of purchase.
(AL) Alabama
(NY) New York
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
DECEMBER 31, 1999
Schedule of Investments
Tax-Exempt Money Market Fund\\(US)\\
[PIE CHART]
Repurchase Agreement and
Net Other Assets and Liabilities Municipal Bonds
8.9% 91.1%
% of Total Net Assets
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS - 91.1%
Alaska - 1.6%
Valdez Marine Terminal RB
Exxon Pipeline Co. Project
4.850%, 01/03/00 (1)............. $ 5,700 $ 5,700
----------
Arizona - 5.3%
Salt River Project TECP
3.850%, 01/10/00................. 2,000 2,000
3.850%, 01/11/00................. 8,000 8,000
3.500%, 01/19/00................. 3,900 3,900
Tempe Excise Tax RB
4.900%, 02/05/00 (1)............. 4,500 4,500
----------
18,400
Colorado - 2.4% ----------
Colorado Educational and
Cultural Facilities RB
Naropa University Project
5.600%, 02/06/00 (1)............. 3,275 3,275
National Cable Television Center
5.600%, 02/06/00 (1)............. 5,000 5,000
----------
8,275
----------
Florida - 4.0%
Jacksonville Electric Authority
TECP
3.850%, 01/10/00................. 13,950 13,950
----------
Illinois - 4.3%
Chicago Park District Warrants
4.375%, 09/15/00................. $ 5,000 $ 5,026
Illinois Development Finance
Authority RB
Saint Xavier University
5.550%, 02/05/00 (1)............. 180 180
Illinois Health Facilities Authority
TECP, Series 97-B
3.750%, 04/11/00................. 10,000 10,00
----------
15,206
----------
Indiana - 6.6%
Hammond Pollution Control RB
Amoco Oil Project
4.850%, 01/03/00 (1)............. 2,235 2,235
Mt. Vernon Pollution Control
TECP, Series 89-A
3.700%, 01/10/00................. 12,000 12,000
Sullivan Pollution Control
Hoosier Energy Rural Electric
TECP, Series L-4
3.850%, 01/10/00................. 2,400 2,400
3.500%, 01/20/00................. 3,000 3,000
3.750%, 01/20/00................. 1,250 1,250
Sullivan Pollution Control
Hoosier Energy Rural Electric
TECP, Series L-6
3.750%, 01/20/00................. 2,100 2,100
----------
22,985
----------
Iowa - 2.0%
Iowa State School Cash
Anticipation Program Warrants
Series A
4.000%, 06/23/00................. 4,000 4,014
Series B
3.500%, 01/28/00................. 3,000 3,001
----------
7,015
----------
Kentucky - 2.3%
Jefferson County TECP
Series 93-A
3.600%, 01/25/00................. 5,000 5,000
Series 96-A
3.600%, 01/25/00................. 3,000 3,000
----------
8,000
----------
Louisiana - 0.1%
St. Charles Parish Pollution
Control RB, Series B
4.850%, 01/03/00 (1)............. 500 500
----------
The accompanying notes are an integral part of the financial statements.
27
<PAGE>
Schedule of Investments
<TABLE>
<CAPTION>
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
Maryland - 2.9%
Maryland State Health &
Higher Education
Facilities Authority RB
Pooled Loan Program, Series B
5.150%, 02/05/00 (1)................................................ $ 4,100 $ 4,100
Maryland State Health &
Higher Education
Facilities Authority RB
Pooled Loan Program, Series D
5.350%, 02/05/00 (1)................................................ 5,960 5,960
----------
10,060
----------
Minnesota - 9.0%
Becker, Pollution Control RB
TECP, Northern State Power Co.
Series 93-A
3.700%, 02/16/00.................................................... 8,000 8,000
Hennepin County, GO, Series C
5.400%, 02/06/00 (1)................................................ 1,700 1,700
5.400%, 02/06/00 (1)................................................ 1,050 1,050
Minneapolis, GO, Series A
5.400%, 02/06/00 (1)................................................ 4,600 4,600
Series B
5.400%, 02/06/00 (1)................................................ 2,200 2,200
5.400%, 02/06/00 (1)................................................ 5,830 5,830
Minnesota School Districts TRAN
Series B
2.950%, 02/24/00.................................................... 3,000 3,000
Owatonna Hospital RB
Health Central System
5.000%, 02/05/00(1)................................................. 5,340 5,340
----------
31,720
----------
Missouri - 1.1%
Missouri State Health & Educational
Facilities Authority RB
The Washington University, Series A
3.650%, 03/01/00.................................................... 2,000 2,000
Missouri State Health & Educational
Facilities Authority RB
The Washington University, Series B
3.650%, 03/01/00.................................................... 2,000 2,000
----------
4,000
----------
Nebraska - 2.9%
Omaha Public Power District TECP
3.750%, 01/18/00.................................................... 4,000 4,000
3.850%, 01/18/00.................................................... 6,000 6,000
----------
10,000
----------
Nevada - 1.7%
Las Vegas Valley Water
District TECP, Series A
3.750%, 03/01/00.................................................... $ 6,000 $ 6,000
----------
New Jersey - 1.7%
New Jersey State TECP
Series 00-A
3.850%, 02/08/00.................................................... 3,000 3,000
3.700%, 02/14/00.................................................... 3,000 3,000
----------
6,000
----------
New Mexico - 5.8%
Hurley Pollution Control RB
4.850%, 01/03/00 (1)................................................ 14,000 14,000
New Mexico State TRAN
4.000%, 06/30/00.................................................... 6,400 6,424
----------
20,424
----------
New York - 12.2%
New York, GO, Series B
4.500%, 01/03/00 (1)................................................ 7,000 7,000
4.500%, 01/03/00 (1)................................................ 6,000 6,000
New York State Dormitory
Authority RB
Memorial Sloan-Kettering, Series C
5.500%, 02/06/00 (1)................................................ 15,000 15,000
New York State Local
Government Assistance RB
Series D
5.200%, 02/06/00 (1)................................................ 14,000 14,000
Series E
5.200%, 02/06/00 (1)................................................ 900 900
----------
42,900
----------
Ohio - 0.7%
Ohio State Air Quality
Development Authority RB
Cincinnati Gas & Electric
Series B
4.850%, 01/03/00(1)................................................. 2,600 2,600
----------
South Carolina - 1.8%
Piedmont Municipal Power Agency RB
Series C, MBIA
5.650%, 02/05/00 (1)................................................ 6,400 6,400
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
28
<PAGE>
DECEMBER 31, 1999
Schedule of Investments
<TABLE>
<CAPTION>
Face Market
Description Amount (000) Value (000)
- ----------------------------------------------------------------------------
<S> <C> <C>
Texas - 8.1%
Austin, TECP
Combined Utility System, Series A
3.800%, 03/09/00........................ $ 10,000 $ 10,000
Travis & Williams Co.
3.650%, 03/09/00........................ 3,000 3,000
Harris County, GO
Tax Anticipation Notes
4.000%, 02/29/00........................ 3,000 3,002
Harris County, Health Facilities
Development Corp., Texas
Medical Center Project
4.500%, 01/03/00(1)..................... 600 600
Texas Higher Education Authority RB
Series B, FGIC
5.500%, 02/06/00 (1).................... 1,575 1,575
Texas State TRAN, Series A
4.500%, 08/31/00........................ 10,000 10,051
--------
28,228
--------
Virginia - 2.9%
Peninsula Ports Authority TECP
Coal Term RB
3.400%, 01/18/00........................ 10,000 10,000
--------
Wisconsin - 5.0%
Milwaukee TRAN, Series A
3.500%, 02/24/00........................ 3,500 3,501
State of Wisconsin, GO
Series 98-A
3.350%, 01/18/00........................ 2,213 2,213
State of Wisconsin
Transportation, TECP
3.850%, 02/08/00........................ 2,599 2,599
3.700%, 03/09/00........................ 7,711 7,711
3.800%, 03/09/00........................ 1,436 1,436
--------
17,460
--------
Wyoming - 6.7%
Gillette, Pollution Control RB
5.500%, 02/06/00 (1).................... 4,000 4,000
Lincoln County Pollution
Control RB, Exxon Project
4.850%, 01/03/00 (1).................... 10,000 10,000
Sweetwater County Pollution
Control RB
PacifiCorp. Project, Series B
4.500%, 01/03/00 (1).................... 3,000 3,000
Sweetwater County Pollution
Control RB
PacifiCorp. Project, TECP
3.600%, 01/13/00........................ $ 5,000 $ 5,000
3.750%, 02/01/00........................ 1,500 1,500
--------
23,500
--------
Total Municipal Bonds
(Cost $319,323)......................... 319,323
--------
REPURCHASE AGREEMENT - 8.6%
J.P. Morgan
3.200%, dated 12/31/99, matures
01/03/00, repurchase price
$30,049,473 (collateralized by
U.S. Government Agency
Instruments, total market
value: $30,642,291)..................... 30,042 30,042
--------
Total Repurchase Agreement
(Cost $30,042).......................... 30,042
--------
Total Investments - 99.7%
(Cost $349,365)......................... 349,365
--------
Net Other Assets and Liabilities - 0.3% 1,220
--------
Total Net Assets - 100.0%.................. $350,585
========
</TABLE>
_____________________________________________
(1) Variable rate instrument. The rate reported on the Schedule Investments is
the rate in effect on December 31, 1999. The maturity date shown is the
next scheduled reset date.
GO General Obligation
RB Revenue Bond
TECP Tax-Exempt Commercial Paper
TRAN Tax & Revenue Anticipation Note
Financial Guaranty Insurance Corporations (FGIC) and Municipal Bond Insurance
Association (MBIA) have provided underlying credit support for certain
securities as defined within the Schedule of Investments. At December 31, 1999,
these securities amounted to $1,575,000 or 0.4% of net assets and $6,400,000 or
1.8% of net assets, respectively.
The accompanying notes are an integral part of the financial statements.
29
<PAGE>
Schedule of Investments
Fixed Income Fund\\(US)\\
[PIE CHART]
Commercial Repurchase Agreement and
Mortgage-Backed Security Net Other Assets and Liabilities
2.5% 4.0%
Asset-Backed Securities
3.7%
Foreign Corporate
Notes and Bonds
4.9%
U.S. Government U.S. Government
Agency Obligations Mortgage-Backed
10.3% Securities
31.8%
U.S. Treasury
Obligations
18.4%
Corporate Notes and Bonds
24.4%
% of Total Net Assets
<TABLE>
<CAPTION>
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT
MORTGAGE-BACKED SECURITIES - 31.8%
Fannie Mae, Pass Thru
7.000%, 10/01/14, Pool # 323975........... $ 5,849 $ 5,787
7.500%, 05/01/27, Pool # 421454........... 1,885 1,865
6.500%, 05/01/28, Pool # 436779........... 5,267 4,966
7.000%, 01/01/29, Pool # 323542........... 2,537 2,454
7.500%, 01/01/29, Pool # 492910........... 1,497 1,481
7.000%, 03/01/29, Pool # 323657........... 3,969 3,840
6.500%, 06/01/29, Pool # 504545........... 7,800 7,354
8.000%, 09/01/29, Pool # 252802........... 5,442 5,490
Fannie Mae, REMIC
6.500%, 06/25/12, CMO
Series 1999-41, Class PC.................. 4,685 4,554
Freddie Mac, REMIC
6.500%, 05/15/24, CMO
Series 2149, Class TF..................... 4,090 3,909
Ginnie Mae, Pass Thru
7.000%, 12/15/23, Pool # 366646........... 2,453 2,371
7.000%, 03/15/26, Pool # 417290........... 3,207 3,100
7.000%, 05/15/29, Pool # 487221........... 2,993 2,893
7.000%, 05/15/29, Pool # 487222........... 3,864 3,735
7.500%, 11/20/29, Pool # 002839........... 6,492 6,405
---------
Total U.S. Government
Mortgage-Backed Securities
(Cost $61,694)............................. 60,204
---------
CORPORATE NOTES AND BONDS - 24.4%
Basic Materials - 1.1%
Dow Chemical, Debentures
7.375%, 11/01/29......................... $ 2,250 $ 2,153
---------
Communication Services - 0.7%
Jones Intercable, Senior Notes
9.625%, 03/15/02......................... 1,200 1,253
---------
Consumer Cyclicals - 6.2%
Federated Department Stores, Senior Notes
8.125%, 10/15/02.......................... 2,150 2,194
Ford Motor
7.450%, 07/16/31.......................... 2,125 2,044
Saks
8.250%, 11/15/08.......................... 4,000 3,889
Wal-Mart Stores, Senior Notes
6.875%, 08/10/09.......................... 3,790 3,689
---------
11,816
---------
Consumer Staples - 1.8%
Time Warner Entertainment, Debentures
7.250%, 09/01/08.......................... 3,400 3,308
---------
Financial - 5.8%
Abbey National PLC, Yankee
Subordinated Debentures
7.950%, 10/26/29.......................... 2,000 1,997
Associates of North America
Senior Notes
6.450%, 10/15/01.......................... 1,765 1,750
National Rural Utilities
Cooperative Finance
5.300%, 09/25/03.......................... 3,795 3,592
Wells Fargo
6.625%, 07/15/04.......................... 3,700 3,619
---------
10,958
---------
Industrial - 1.6%
Owens Corning
7.500%, 05/01/05.......................... 3,175 3,015
---------
Technology - 1.6%
International Business Machines, MTN
5.625%, 04/12/04.......................... 3,245 3,078
---------
</TABLE>
The accompanying notes are an integral part of the financial statements.
30
<PAGE>
DECEMBER 31, 1999
Schedule of Investments
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
Telecommunications - 2.8%
MCI WorldCom
6.250%, 08/15/03....................... $ 3,400 $ 3,308
360 Communications, Senior Notes
7.125%, 03/01/03....................... 2,055 2,052
------------
5,360
------------
Transportation - 1.5%
Continental Airlines,
Series 99-2, Class A
7.256%, 03/15/20..................... 3,015 2,881
------------
Utilities - 1.3%
Long Island Lighting, Debentures
8.200%, 03/15/23....................... 2,570 2,512
------------
Total Corporate Notes and Bonds
(Cost $48,288)........................... 46,334
------------
U.S. TREASURY OBLIGATIONS - 18.4%
U.S. Treasury Bonds
7.250%, 05/15/16........................ 18,250 19,077
6.125%, 08/15/29........................ 4,000 3,814
U.S. Treasury Notes
6.375%, 09/30/01........................ 2,800 2,805
5.250%, 05/15/04........................ 1,440 1,379
7.000%, 07/15/06........................ 3,500 3,585
6.000%, 08/15/09........................ 4,300 4,166
------------
Total U.S. Treasury Obligations
(Cost $35,798)............................ 34,826
------------
U.S. GOVERNMENT
AGENCY OBLIGATIONS - 10.3%
Fannie Mae
5.625%, 05/14/04........................ 5,200 4,960
5.750%, 06/15/05........................ 4,700 4,462
5.510%, 04/19/02, MTN................... 2,280 2,226
6.180%, 02/19/09, MTN................... 1,635 1,511
Freddie Mac
5.000%, 01/15/04........................ 3,000 2,805
6.750%, 09/15/29........................ 3,700 3,501
------------
Total U.S. Government Agency Obligations
(Cost $20,098)............................ 19,465
------------
FOREIGN CORPORATE NOTES AND BONDS - 4.9%
Energy - 1.1%
Norsk Hydro, Yankee Notes
6.700%, 01/15/18........................ $ 2,425 $ 2,139
------------
Financial - 2.0%
Korea Development Bank
7.125%, 04/22/04........................ 1,615 1,576
7.375%, 09/17/04........................ 2,215 2,175
------------
3,751
------------
Utilities - 1.8%
Korea Electric Power, Yankee
Debentures
6.000%, 12/01/26........................ 3,440 3,330
------------
Total Foreign Corporate Notes and Bonds
(Cost $9,269)............................. 9,220
------------
ASSET-BACKED SECURITIES - 3.7%
Advanta Equipment Receivables
Series 1998-1, Class B
6.100%, 12/15/06......................... 2,000 1,981
Amresco Securitized Net Interest
Series 1997-1, Class A, CMO
7.545%, 09/26/27 (A)..................... 2,715 2,617
Chase Credit Card Master Trust
Series 1997-5, Class A
6.194%, 08/15/05......................... 500 492
First Sierra Receivables
Series 1997-1, Class A4
6.350%, 03/10/05......................... 2,000 1,977
------------
Total Asset-Backed Securities
(Cost $9,528)............................. 7,067
------------
COMMERCIAL MORTGAGE-BACKED SECURITY - 2.5%
Asset Securitization Corp.
Series 1995-MD4, Class A1
7.100%, 08/13/29......................... 4,798 4,735
------------
Total Commercial Mortgage-Backed Security
(Cost $2,696)............................. 4,735
------------
The accompanying notes are an integral part of the financial statements.
31
<PAGE>
Schedule of Investments
Face Market
Description Amount (000) Value (000)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 2.9%
J.P. Morgan
3.200%, dated 12/31/99, matures
01/03/00, repurchase price $5,481,273
(collateralized by U.S. Government
Agency Instrument, total market
value: $5,589,409)...................... $ 5,480 $ 5,480
-----------
Total Repurchase Agreement
(Cost $5,480).............................. 5,480
-----------
Total Investments - 98.9%
(Cost $192,851)............................ 187,331
-----------
Net Other Assets and Liabilities - 1.1% 2,119
-----------
Total Net Assets - 100.0%................... $ 189,450
===========
- ------------------------------------------------------------------
(A) Securities exempt from registration pursuant to Rule 144A
under the Securities Act of 1933, as amended. These securities
may be resold, in transactions exempt from registration, to
qualified institutional buyers. At December 31, 1999, these
securities amounted to $2,616,570 or 1.4% of net assets.
CMO Collateralized Mortgage Obligation
MTN Medium Term Note
REMIC Real Estate Mortgage Investment Conduit
The accompanying notes are an integral part of the financial statements.
32
<PAGE>
DECEMBER 31, 1999
Schedule of Investments
Tax-Exempt Fixed Income Fund\\(US)\\
[PIE CHART]
Investment Company and
Net Other Assets and Liabilities
2.5%
Municipal Bonds
97.5%
% of Total net Assets
Face Market
Description Amount (000) Value (000)
- ------------------------------------------------------------------------------
MUNICIPAL BONDS- 97.5%
Arkansas - 6.7%
Arkansas State Development
Financial Authority,
Wastewater System RB, Series A
5.850%, 12/01/19............... $ 1,000 $ 990
Jefferson County
Pollution Control RB
Arkansas Power & Light Co.
Project, AMBAC
6.300%, 06/01/18............... 1,000 1,035
-----------
2,025
-----------
Illinois - 24.4%
Chicago Board of Education
School Reform Board, Series A, GO
FGIC
5.250%, 12/01/20............... 1,000 896
Chicago Gas Supply RB
Peoples Gas Light & Coke
7.500%, 03/01/15............... 1,000 1,024
Chicago Metropolitan Water
Reclamation District, Greater
Chicago Capital Improvement, GO
5.500%, 12/01/12............... 1,000 988
Cook County, Capital Improvement
GO, FGIC, C60
5.750%, 11/15/12............... 1,000 1,050
Cook County Community School
District No. 118-Palos, GO, FSA
4.850%, 12/01/01............... 1,000 1,006
Illinois Development Finance
Authority RB
Lincoln Way Community, FGIC
5.700%, 01/01/18............... $ 1,400 $ 1,370
Lake County High School District
No. 113, Highland Park, GO
3.450%, 12/01/00............... 1,000 992
-----------
7,326
-----------
Kentucky - 3.3%
Lexington-Fayette Urban County
Detention Center Project GO
4.250%, 05/01/03............... 1,000 986
-----------
Massachusetts - 3.0%
Amherst-Pelham Regional School District
GO, AMBAC
5.125%, 05/15/18............... 1,000 894
-----------
Michigan - 4.3%
Michigan State House of Representatives
Capital Outlook, AMBAC
5.000%, 08/15/20............... 1,500 1,294
-----------
Mississippi - 3.5%
Mississippi State Hospital Equipment
& Facilities Authority RB
Baptist Medical Center Project, MBIA
6.500%, 05/01/10............... 1,000 1,065
-----------
Missouri - 7.4%
Missouri State Health & Educational
Facilities Authority RB, BJC Health
Systems Project, Series A
Escrowed to maturity
6.750%, 05/15/10............... 2,000 2,230
-----------
Nevada - 3.5%
Clark County Refunding & Transit
Improvement RB, MBIA, Series A
Pre-refunded 06/01/04
6.200%, 06/01/19............... 1,000 1,064
-----------
New York - 5.1%
New York State Highway & Bridge
Improvement Fund RB
MBIA, Series A
5.600%, 04/01/10............... 1,500 1,534
-----------
Oklahoma - 3.5%
Tulsa, Industrial Authority RB,
St. John's Medical Center Project
Pre-refunded 02/15/06
6.250%, 02/15/17............... 1,000 1,066
-----------
The accompanying notes are an integral part of the financial statements.
33
<PAGE>
Schedule of Investments
Face Market
Description Amount (000) Value (000)
- -------------------------------------------------------------------------
Tennessee - 3.5%
Shelby County School District
GO, Series A, Pre-refunded 06/01/06
5.850%, 06/01/17.......................... $ 1,000 $ 1,045
--------
Texas - 14.9%
Dallas Independent School District, GO
5.250%, 08/15/12.......................... 1,000 978
Texas State, Series B, GO
5.125%, 10/01/14.......................... 1,000 936
Texas State Water Financial Assistance, GO
5.250%, 08/01/21.......................... 1,720 1,541
Victoria County Hospital RB,
Citizens Medical Center, AMBAC
6.250%, 01/01/16.......................... 1,000 1,018
--------
4,473
--------
Utah - 1.7%
Intermountain Power Agency
Power Supply RB, Series A
7.300%, 07/01/00.......................... 500 507
--------
Vermont - 3.5%
Vermont Municipal Bond Bank, RB
5.900%, 12/01/04.......................... 1,000 1,050
--------
Washington - 9.2%
Chelan County Public Utilities
District No. 001 RB
Chelan Hydro, Series G
5.375%, 06/01/18.......................... 1,000 925
Port of Seattle Passenger
Facilities RB, Series A, MBIA
5.000%, 12/01/23.......................... 1,000 841
Washington State Public Power Supply
System RB, Nuclear Project No. 1
Series C, AMBAC
5.500%, 07/01/10.......................... 1,000 1,002
--------
2,768
--------
Total Municipal Bonds
(Cost $29,234).............................. 29,327
--------
INVESTMENT COMPANY - 1.5%
Provident Mutual Money Market............... 457,803 $ 458
--------
Total Investment Company
(Cost $458).................................. 458
--------
Total Investments - 99.0%
(Cost $29,692)............................... 29,785
--------
Net Other Assets and Liabilities - 1.0%........ 287
--------
Total Net Assets - 100.0%...................... $ 30,072
========
__________________________
GO General Obligation
RB Revenue Bond
American Municipal Bond Assurance Corporation (AMBAC), Financial Guaranty
Insurance Corporation (FGIC), Financial Security Assurance Company (FSA) and
Municipal Bond Insurance Association (MBIA) have provided underlying credit
support for certain securities as defined within the Schedule of Investments.
At December 31, 1999, these securities amounted to $5,242,500 or 17.4% of net
assets; $3,316,500 or 11.0% of net assets; $1,006,250 or 3.3% of net assets and
$4,503,750 or 15.0% of net assets, respectively.
The accompanying notes are an integral part of the financial statements.
34
<PAGE>
DECEMBER 31, 1999
Schedule of Investments
International Fixed Income Fund \\(US)\\
[PIE CHART APPEARS HERE]
Net Other Assets and Liabilities
1.9%
Government Agencies
3.3%
Financial
18.0%
Government
National
53.6%
Banks
23.2%
% of Total Net Assets
Face Market
Description Amount (000)/(1)/ Value (000)
- ------------------------------------------------------------------------
FOREIGN BONDS - 98.1%
Australia - 3.7%
Bank of Western Australia
7.250%, 09/29/03............ $ 400 $ 262
Treasury Corp. of Victoria
8.250%, 10/15/03............ 400 274
------
536
------
Austria - 5.7%
Republic of Austria
4.500%, 09/28/05...........JPY 70,000 813
------
Belgium - 4.4%
Kingdom of Belgium
9.000%, 03/25/03...........EURO 558 633
------
Canada - 9.7%
Canadian Government
8.750%, 12/01/05........... 1,000 776
1.900%, 03/23/09...........JPY 62,000 621
------
1,397
------
Denmark - 4.0%
Kingdom of Denmark
7.000%, 12/15/04............ 4,000 582
------
Finland - 4.1%
Republic of Finland
8.250%, 06/25/02.................DEM 1,050 585
------
France - 4.2%
Government of France
5.250%, 04/25/08............EURO 297 297
8.500%, 04/25/23............EURO 229 304
------
601
------
Germany-6.8%
Bundesrepublic Deutschland
8.375%, 05/21/01............EURO 511 $ 544
Bundesrepublic Deutschland
Series 98
5.625%, 01/04/28............EURO 450 430
------
974
------
Greece - 4.2%
Hellenic Republic
6.500%, 01/11/14............ 200,000 605
------
Ireland - 3.6%
Government of Ireland
9.250%, 07/11/03............EUR0 450 520
------
Italy - 3.3%
Republic of Italy
5.000%, 12/15/04............JPY 40,000 467
------
Japan - 6.7%
Export-Import Bank of Japan
2.875%, 07/28/05............ 90,000 964
------
Netherlands - 10.3%
Deutsche Finance BV
6.000%, 01/12/04............ 1,000 469
International Nederland Bank, MTN
6.000%, 10/01/07............ 1,000 455
Kingdom of Netherlands
8.250%, 06/15/02............EURO 318 347
7.500%, 01/15/23
Principal Strip A...........EURO 908 216
------
1,487
------
Spain - 3.2%
Kingdom of Spain
6.150%, 01/31/13............EURO 450 466
------
Supranational - 11.5%
European Investment Bank
8.000%, 06/10/03............GBP 700 1,166
World Bank
5.250%, 03/20/02............JPY 45,000 489
------
1,655
------
Sweden - 3.4%
Kingdom of Sweden
13.000%, 06/15/01........... 1,000 131
6.000%, 02/09/05........... 3,000 362
------
493
------
The accompanying notes are an integral part of the financial statements.
35
<PAGE>
Schedule of Investments
Face Market
Description Amount (000)/(1)/ Value (000)
- -------------------------------------------------------------------------
United States - 9.3%
Fannie Mae
1.750%, 03/26/08
Series E, MTN.................. JPY 80,000 $ 798
Tennessee Valley Authority
6.375%, 09/18/06............... DEM 1,000 545
--------
1,343
--------
Total Foreign Bonds
(Cost $14,654).................... 14,121
--------
Total Investments - 98.1%
(Cost $14,654).................... 14,121
--------
Net Other Assets and Liabilities - 1.9% 279
--------
Total Net Assets - 100.0%........... $ 14,400
========
__________________________________________________
(1) In local currency unless otherwise noted.
(A) Zero coupon bond. Rate reflects effective yield to maturity.
DEM Deutsche Mark
EURO European Monetary Unit
GBP Great Britain Pounds
JPY Japanese Yen
MTN Medium Term Note
As of December 31, 1999, the Fund had entered into the following forward foreign
currency exchange contracts:
<TABLE>
<CAPTION>
Net Unrealized
Contracts to Receive In Exchange For Settlement Date Depreciation (000)
- ----------------------------- ---------------------- --------------- ------------------
<S> <C> <C> <C>
EURO 1,204,819 U.S. Dollars 1,307,229 01/13/2000 $ (92)
==================
</TABLE>
The accompanying notes are an integral part of the financial statements.
36
<PAGE>
DECEMBER 31, 1999
Schedule of Investments
Balanced Fund\\(US)\\
[PIE CHART]
Asset-Backed Securities Net Other Assets and Liabilities
0.9% 0.5%
U.S. Government Agency Commercial
Obligations Mortgage-Backed Security
2.4% 0.4%
U.S. Treasury
Obligations
3.9%
U.S. Government
Mortgage-Backed
Securities
9.1%
Foreign Corporate
Notes and Bonds
1.5%
Domestic Corporate
Notes and Bonds Domestic Common Stocks
7.2% 74.1%
% of Total Net Assets
Market
Description Shares Value (000)
=====================================================================
DOMESTIC COMMON STOCKS - 74.1%
Basic Materials - 2.9%
Alcoa..................................... 8,500 $ 706
Dow Chemical.............................. 4,000 534
duPont (E. I.) deNemours.................. 12,400 817
Mead...................................... 10,400 452
--------
2,509
--------
Capital Goods - 7.4%
Caterpillar............................... 9,100 428
Emerson Electric.......................... 9,000 516
General Electric.......................... 18,000 2,785
Honeywell International................... 10,800 623
Pitney Bowes.............................. 5,000 242
Timken.................................... 21,950 449
Tyco International........................ 20,600 801
United Technologies....................... 9,500 618
--------
6,462
--------
Communication Services - 5.9%
AT&T...................................... 27,700 1,406
GTE....................................... 18,400 1,298
MCI WorldCom*............................. 22,050 1,170
SBC Communications........................ 26,200 1,277
--------
5,151
--------
Consumer Cyclicals - 7.3%
American Greetings, Class A............... 18,100 $ 428
Ford Motor................................ 13,350 713
Home Depot................................ 18,150 1,244
Interpublic Group......................... 10,000 577
May Department Stores (The)............... 14,300 461
Service International..................... 60,300 418
USG....................................... 7,600 358
V.F....................................... 14,000 420
Wal-Mart Stores........................... 25,600 1,770
--------
6,389
--------
Consumer Staples - 8.7%
Albertson's............................... 15,900 513
Coca-Cola................................. 22,000 1,282
ConAgra................................... 20,200 456
CVS....................................... 12,600 503
Disney (Walt)............................. 25,600 749
Gillette.................................. 15,700 647
McDonald's................................ 16,100 649
Newell Rubbermaid......................... 15,700 455
Philip Morris............................. 26,000 603
Procter & Gamble.......................... 11,100 1,216
SUPERVALU................................. 24,300 486
--------
7,559
--------
Energy - 3.0%
Exxon Mobil............................... 19,000 1,531
Halliburton............................... 13,300 535
Texaco.................................... 9,900 538
--------
2,604
--------
Financial - 10.4%
Allstate.................................. 17,000 408
American Express.......................... 5,000 831
American International Group.............. 12,700 1,373
Bank of America........................... 16,900 848
Chase Manhattan........................... 9,500 738
Citigroup................................. 25,400 1,411
Fannie Mae................................ 11,700 731
FleetBoston Financial..................... 16,400 571
Hartford Financial Services Group......... 10,500 497
Lincoln National.......................... 11,100 444
Merrill Lynch............................. 6,600 551
Wells Fargo............................... 18,000 728
--------
9,131
--------
Health Care - 6.9%
Abbott Labs............................... 18,800 683
Bristol-Myers Squibb...................... 16,200 1,040
Eli Lilly................................. 11,600 771
Johnson & Johnson......................... 11,300 1,052
Medtronic................................. 18,800 685
Pfizer.................................... 33,200 1,077
Schering-Plough........................... 16,500 696
--------
6,004
--------
The accompanying notes are an integral part of the financial statements.
37
<PAGE>
Schedule of Investments
<TABLE>
<CAPTION>
Shares/ Market
Description Face Amount (000) Value (000)
- ---------------------------------------------------------------------
<S> <C> <C>
Technology - 19.4%
Altera* .......................... 8,400 $ 416
Automatic Data Processing ........ 11,200 603
Cisco Systems* ................... 17,900 1,918
Eastman Kodak .................... 6,450 427
EMC* ............................. 9,500 1,038
Hewlett Packard .................. 9,500 1,082
Intel ............................ 19,400 1,597
International Business Machines .. 14,200 1,534
Lucent Technologies .............. 19,300 1,444
Microsoft* ....................... 28,000 3,269
Nortel Networks .................. 12,000 1,212
Sun Microsystems* ................ 13,400 1,038
Texas Instruments ................ 9,000 872
Xerox ............................ 22,900 520
-------
16,970
-------
Transportation - 0.5%
CNF Transportation ............... 13,600 469
-------
Utilities - 1.7%
Enron ............................ 13,700 608
Southern ......................... 20,000 470
Utilicorp United ................. 22,100 430
-------
1,508
-------
Total Domestic Common Stocks
(Cost $52,253) ..................... 64,756
-------
U.S. GOVERNMENT
MORTGAGE-BACKED SECURITIES - 9.1%
Fannie Mae
6.500%, 06/25/12, CMO, REMIC
Series 1999-41, Class PC ..... $ 750 729
7.000%, 10/01/14, Pool # 323975 292 289
7.500%, 05/01/27, Pool # 421454 246 243
6.500%, 05/01/28, Pool # 436779 662 624
7.000%, 01/01/29, Pool # 323542 749 724
7.500%, 01/01/29, Pool # 492910 237 235
7.000%, 03/01/29, Pool # 323657 667 645
7.000%, 09/01/29, Pool # 252716 495 479
8.000%, 09/01/29, Pool # 252802 906 913
Freddie Mac, REMIC
6.500%, 05/15/24, CMO, Series 2149 635 607
Ginnie Mae
7.000%, 12/15/23, Pool # 366646 402 389
7.000%, 03/15/26, Pool # 417290 526 509
7.000%, 05/15/29, Pool # 487222 618 597
7.500%, 11/20/29, Pool # 002839 999 985
-------
Total U.S. Government
Mortgage-Backed Securities
(Cost $8,192) .................... 7,968
-------
<CAPTION>
Face Market
Description Amount (000) Value (000)
- ---------------------------------------------------------------------
<S> <C> <C>
DOMESTIC CORPORATE NOTES AND BONDS - 7.2%
Basic Materials - 0.3%
Dow Chemical, Debentures
7.375%, 11/01/29 .......... $ 325 $ 311
-------
Consumer Cyclicals - 1.4%
Federated Department Stores, Senior Notes
8.125%, 10/15/02 ............ 350 357
Ford Motor
7.450%, 07/16/31 ............ 270 260
Wal-Mart Stores, Senior Notes
6.875%, 08/10/09............. 625 608
-------
1,225
-------
Consumer Staples - 0.7%
Jones Intercable, Senior Notes
9.625%, 03/15/02 ............ 150 157
Time Warner Entertainment, Debentures
7.250%, 09/01/08 ............ 430 418
-------
575
-------
Financial - 1.4%
Associates of North America
Senior Notes
6.450%, 10/15/01 ............ 300 298
National Rural Utilities
Cooperative Finance
5.300%, 09/25/03 ............ 440 416
Wells Fargo
6.625%, 07/15/04 ............ 500 489
-------
1,203
-------
Industrial - 0.5%
Owens Corning
7.500%, 05/01/05 ............ 420 399
-------
Technology - 0.9%
International Business Machines, MTN
5.625%, 04/12/04 ............ 815 773
--------
Telecommunications - 1.1%
MCI WorldCom
6.250%, 08/15/03 ............ 185 180
360 Communications, Senior Notes
7.125%, 03/01/03 ............ 750 749
-------
929
Transportation - 0.5% -------
Continental Airlines, Class A
Series 99-2
7.256%, 03/15/20 ............ 475 454
-------
</TABLE>
The accompanying notes are an integral part of the financial statements.
38
<PAGE>
<TABLE>
<CAPTION>
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
Utilities - 0.4%
Long Island Lighting, Debentures
8.200%, 03/15/23.............................. $ 400 $ 391
---------
Total Domestic Corporate Notes and Bonds
(Cost $6,553).................................... 6,260
---------
U.S. TREASURY OBLIGATIONS - 3.9%
U.S. Treasury Bonds
7.250%, 05/15/16.............................. 1,450 1,516
6.125%, 08/15/29.............................. 1,240 1,182
U.S. Treasury Notes
5.250%, 05/15/04.............................. 260 249
5.500%, 05/15/09.............................. 475 442
---------
Total U.S. Treasury Obligations
(Cost $3,521).................................... 3,389
---------
U.S. GOVERNMENT
AGENCY OBLIGATIONS - 2.4%
Fannie Mae
5.510%, 04/19/02, MTN......................... 580 566
5.625%, 05/14/04.............................. 350 334
6.180%, 02/19/09, MTN......................... 270 249
Freddie Mac
5.125%, 10/15/08.............................. 400 350
6.750%, 09/15/29.............................. 590 558
---------
Total U.S. Government Agency Obligations
(Cost $2,140).................................... 2,057
---------
FOREIGN CORPORATE NOTES AND BONDS - 1.5%
Energy - 0.3%
Norsk Hydro, Yankee Notes
6.700%, 01/15/18.............................. 300 265
---------
Financial - 0.6%
Korea Development Bank
7.125%, 04/22/04.............................. 185 181
7.375%, 09/17/04.............................. 360 353
---------
534
---------
Utilities - 0.6%
Korea Electric Power, Yankee, Debentures
6.000%, 12/01/26.............................. 515 499
---------
Total Foreign Corporate Notes and Bonds
(Cost $1,304).................................... 1,298
---------
ASSET-BACKED SECURITIES - 0.9%
Advanta Equipment Receivables
Series 1998-1, Class B
6.100%, 12/15/06.............................. 250 248
Amresco Securitized Net Interest Margin
Series 1997-1, Class A, CMO
7.545%, 09/26/27 (A).......................... 452 436
Chase Credit Card Master Trust
Series 1997-5, Class A
6.194%, 08/15/05.............................. 125 123
---------
Total Asset-Backed Securities
(Cost $824)...................................... 807
---------
COMMERCIAL MORTGAGE-BACKED SECURITY - 0.4%
Asset Securitization
Series 1995-MD4, Class A1
7.100%, 08/13/29.............................. 391 386
---------
Total Commercial Mortgage-Backed Security
(Cost $412)...................................... 386
---------
Total Investments - 99.5%
(Cost $75,199)................................... 86,921
---------
Net Other Assets and Liabilities - 0.5%............ 448
---------
Total Net Assets - 100.0%.......................... $ 87,369
=========
</TABLE>
- -------------------------------------------------------------------------
* Non-income producing security
(A) Securities exempt from registration pursuant to Rule 144A under the
Securities Act of 1933, as amended. These securities may be resold, in
transactions exempt from registration to qualified institutional buyers.
At December 31, 1999, these securities amounted to $436,095 or 0.5% of
net assets.
CMO Collateralized Mortgage Obligation
MTN Medium Term Note
REMIC Real Estate Mortgage Investment Conduit
The accompanying notes are an integral part of the financial statements.
39
<PAGE>
Schedule of Investments
VALUE FUND\\(US)\\
[PIE CHART]
<TABLE>
<S> <C>
Investment Company and Basic Materials
Net Other Assets and Liabilities 7.5%
0.69%
Utilities Capital Goods
4.3% 6.1%
Transportation Communication
2.2% Services
6.0%
Technology Consumer Cyclicals
11.9% 7.8%
Health care Comsumer Staples
1.7% 10.4%
Financial Energy
27.5% 14.0%
% of Total Net Assets
</TABLE>
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
- --------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 99.4%
Basic Materials - 7.5%
Alcoa............................. 7,850 $ 652
Cleveland-Cliffs.................. 12,000 374
Dow Chemical...................... 7,600 1,016
duPont (E.I.) deNemours........... 32,100 2,115
Eastman Kodak..................... 12,800 848
FMC*.............................. 13,700 785
Georgia-Pacific................... 10,550 535
Lafarge........................... 12,650 349
Mead.............................. 21,200 921
PPG Industries.................... 20,700 1,295
Sherwin-Williams.................. 27,700 582
Union Carbide..................... 7,000 467
Westvaco.......................... 15,450 504
Willamette Industries............. 28,800 1,337
-------
11,780
-------
Capital Goods - 6.1%
Boeing............................ 11,600 482
Caterpillar....................... 13,100 617
Delphi Automotive System.......... 29,100 458
General Dynamics.................. 6,150 324
Honeywell International........... 13,400 773
Illinois Tool Works............... 9,800 662
Ingersoll-Rand.................... 23,800 1,311
Johnson Controls.................. 12,000 683
Minnesota Mining
& Manufacturing................ 14,600 1,429
Parker Hannifin................... 18,900 970
Timken............................ 66,400 1,357
United Technologies............... 8,200 533
--------
9,599
--------
Communication Services - 6.0%
ALLTEL........................... 12,400 $ 1,025
AT&T............................. 27,200 1,380
MCI WorldCom*.................... 88,950 4,720
US West.......................... 25,500 1,836
Vodafone AirTouch SP ADR......... 10,000 495
--------
9,456
--------
Consumer Cyclicals - 7.8%
Circuit City Stores-Circuit......
City Group....................... 12,800 577
Federated Department Stores*..... 17,700 895
First Data....................... 19,400 957
Ford Motor....................... 58,500 3,126
General Motors................... 9,000 654
Limited (The).................... 15,700 680
Loews............................ 5,900 358
Lowe's........................... 25,300 1,512
Marriott International, Class A.. 18,300 578
Sears, Roebuck................... 26,200 797
Starwood Hotels & Resorts........ 31,900 750
TJX Companies.................... 34,000 695
USG 13,900 655
--------
12,234
--------
Consumer Staples - 10.4%
CBS*............................. 31,800 2,033
Comcast, Class A................. 30,600 1,547
ConAgra.......................... 35,600 803
Darden Restaurants............... 23,600 428
Deluxe........................... 15,500 425
Disney (Walt).................... 20,900 611
Fortune Brands................... 24,000 794
Gannett.......................... 11,100 905
McGraw-Hill...................... 30,400 1,873
Philip Morris.................... 36,700 851
Sara Lee......................... 19,600 432
SUPERVALU........................ 99,300 1,986
Time Warner...................... 24,050 1,742
Tribune.......................... 22,350 1,231
Washington Post.................. 1,100 612
--------
16,273
--------
Energy - 14.0%
BP Amoco......................... 30,150 1,788
Chevron.......................... 11,900 1,031
Coastal.......................... 25,350 898
Columbia Energy Group............ 16,100 1,018
Diamond Offshore Drilling........ 14,400 440
Exxon Mobil...................... 107,939 8,696
Halliburton...................... 14,600 588
Kerr-McGee....................... 8,600 533
National Fuel Gas................ 17,400 809
Phillips Petroleum............... 16,350 768
Royal Dutch Petroleum............ 66,150 3,998
Texaco........................... 27,150 1,475
--------
22,042
--------
</TABLE>
The accompanying notes are an integral part of the financial statements.
40
<PAGE>
Schedule of Investments
Market
Description Shares Value (000)
- ------------------------------------------------------------------
Financial - 27.5%
Allstate........................ 66,350 $ 1,592
Ambac Financial Group........... 10,900 569
American Express................ 5,350 889
American General................ 22,000 1,669
American International Group.... 22,300 2,411
Bank of America................. 61,800 3,102
Bank One........................ 37,800 1,212
BB&T............................ 23,100 632
Bear Stearns.................... 22,400 958
Chase Manhattan................. 44,700 3,473
CIGNA........................... 13,400 1,080
Citigroup....................... 115,900 6,440
Comerica........................ 15,550 726
Edwards (A.G.).................. 20,650 662
Fannie Mae...................... 11,600 724
Fifth Third Bancorp............. 10,500 770
First Union..................... 37,400 1,227
Firstar......................... 54,600 1,153
FleetBoston Financial........... 55,400 1,929
Lehman Brothers Holdings........ 12,900 1,093
Marsh & McLennan................ 10,900 1,043
MBNA............................ 45,850 1,249
Merrill Lynch................... 23,500 1,962
Morgan (J.P.)................... 5,900 747
Morgan Stanley Dean Witter...... 14,250 2,034
PNC Bank........................ 6,500 289
St. Paul Companies.............. 21,800 734
Suntrust Banks.................. 21,650 1,490
Union Planters.................. 18,600 734
XL Capital...................... 12,400 643
---------
43,236
---------
Health Care - 1.7%
Columbia/HCA Healthcare........... 24,200 709
Mallinckrodt...................... 32,300 1,028
Schering-Plough................... 20,900 882
---------
2,619
---------
Technology - 11.9%
Adaptec*.......................... 12,200 608
ADC Telecommunications*........... 27,410 1,989
Analog Devices*................... 11,200 1,042
Apple Computer*................... 7,300 751
BMC Software*..................... 9,400 751
Compaq Computer................... 28,500 771
Dell Computer*.................... 14,000 714
General Instrument................ 11,800 1,003
Hewlett Packard................... 21,900 2,495
Intel*............................ 11,100 914
Motorola.......................... 10,950 1,612
Nokia............................. 5,000 950
Nortel Networks................... 10,000 1,010
Novell*........................... 44,500 $ 1,777
Seagate Technology................ 13,350 622
Tellabs*.......................... 12,700 815
3Com.............................. 17,500 823
---------
18,647
---------
Transportation - 2.2%
CNF Transportation................. 25,750 888
Delta Air Lines.................... 31,750 1,582
Union Pacific...................... 20,700 903
---------
3,373
---------
Utilities - 4.3%
American Electric Power............ 24,900 800
Consolidated Edison................ 17,700 611
Emerson Electric................... 32,800 1,882
Entergy............................ 33,200 855
GPU................................ 42,950 1,286
Southern........................... 20,800 489
UtiliCorp United................... 44,150 858
---------
6,781
---------
Total Common Stocks
(Cost $144,200).................... 156,040
---------
INVESTMENT COMPANY - 0.5%
Chase Vista Federal
Money Market Fund............. 777 777
---------
Total Investment Company
(Cost $777)........................ 777
---------
Total Investments - 99.9%
(Cost $144,977).................... 156,817
---------
Net Other Assets and Liabilities
- 0.1%............................. 232
---------
Total Net Assets - 100.0%........... $ 157,049
=========
____________________________________________
* Non-income producing security
SP ADR Sponsored American Depositary Receipt
The accompanying notes are an integral part of the financial statements.
41
<PAGE>
Schedule of Investments
GROWTH FUND\\(US)\\
[PIE CHART APPEARS HERE]
Repurchase Agreement and
Net Other Assets and Liabilities Capital Goods
1.2% 6.9%
Communication Services
Technology 9.4%
32.2%
Consumer Cyclicals
14.5%
Health Care Consumer Staples
11.2% 8.7%
Financial Energy
11.1% 4.8%
% of Total Net Assets
Market
Description Shares Value (000)
- -------------------------------------------------------------
COMMON STOCKS - 98.8%
Capital Goods - 6.9%
General Electric................ 60,300 $ 9,331
Illinois Tool Works............. 65,000 4,392
--------
13,723
--------
Communication Services - 9.4%
AT&T............................ 54,300 2,756
MCI WorldCom*................... 157,350 8,349
Qwest Communications
International* ................. 107,500 4,622
SBC Communications.............. 61,574 3,002
--------
18,729
--------
Consumer Cyclicals - 14.5%
Carnival........................ 44,700 2,137
Dayton Hudson................... 72,000 5,288
Harley Davidson................. 50,300 3,222
Home Depot...................... 42,300 2,900
Interpublic Group............... 106,400 6,138
Lowe's.......................... 45,300 2,707
Marriott International, Class A. 63,800 2,014
Staples* ....................... 97,650 2,026
Wal-Mart Stores................. 37,300 2,578
--------
29,010
--------
Consumer Staples - 8.7%
Clorox.......................... 72,000 3,627
Colgate-Palmolive............... 100,000 6,500
CVS............................. 40,300 1,609
Safeway*........................ 98,100 3,489
Time Warner..................... 29,200 2,115
--------
17,340
--------
Energy - 4.8%
Exxon Mobil..................... 55,050 4,435
Schlumberger.................... 82,600 4,646
Transocean Sedco Forex.......... 15,991 $ 539
--------
9,620
--------
Financial - 11.1%
American International Group.. 40,770 4,408
Citigroup..................... 148,550 8,254
Fannie Mae.................... 57,600 3,596
First Union................... 102,700 3,370
Wells Fargo................... 62,500 2,527
--------
22,155
--------
Health Care - 11.2%
Abbott Laboratories........... 61,800 2,244
Biomet........................ 76,300 3,052
Bristol-Myers Squibb.......... 48,600 3,119
Guidant*...................... 74,000 3,478
Johnson & Johnson............. 21,000 1,956
Pfizer........................ 167,400 5,430
Schering-Plough............... 71,700 3,025
--------
22,304
--------
Technology - 32.2%
ADC Telecommunications*....... 111,700 8,105
America Online*............... 42,600 3,214
BMC Software*................. 61,200 4,892
Cisco Systems*................ 97,750 10,471
Concord EFS*.................. 112,575 2,899
EMC*.......................... 51,200 5,594
Intel......................... 54,300 4,470
Microsoft*.................... 77,000 8,990
Sun Microsystems*............. 37,600 2,912
Tellabs*...................... 88,400 5,674
3Com*......................... 102,500 4,818
Vitesse Semiconductor*........ 43,300 2,270
--------
64,309
--------
Total Common Stocks
(Cost $137,231)................ 197,190
--------
REPURCHASE AGREEMENT - 1.1%
J.P. Morgan
3.20%, dated 12/31/99, matures
01/03/00, repurchase price $2,100,096
(collateralized by U.S. Government
Agency Instrument, total market
value: $2,141,528).................... $ 2,100 $ 2,100
---------
Total Repurchase Agreement
(Cost $2,100).......................... 2,100
---------
Total Investments - 99.9%
(Cost $139,331)........................ 199,290
---------
Net Other Assets and Liabilities - 0.1% 282
---------
Total Net Assets - 100.0%................ $ 199,572
=========
__________________________________________________
* Non-income producing security
The accompanying notes are an integral part of the financial statements.
42
<PAGE>
DECEMBER 31, 1999
Schedule of Investments
INTERNATIONAL EQUITY FUND\\(US)\\
[PIE CHART]
Net Other Assets and Liabilities
1.8%
Financial
Basic Materials 22.1%
0.9%
Capital Goods
5.7%
Energy
5.6%
Health Care
6.7%
Consumer Cyclicals
6.4%
Consumer Staples
8.4%
Communication
Technology Services
22.2% 20.2%
% of Total Net Assets
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
FOREIGN COMMON STOCKS - 98.2%
Australia - 2.1%
Australia and New Zealand
Banking Group................................. 187,376 $ 1,363
Brambles Industries............................... 60,000 1,659
Telstra........................................... 250,000 1,359
-----------
4,381
-----------
China - 2.0%
HSBC Holdings..................................... 187,104 2,624
Hutchison Whampoa................................. 110,000 1,599
-----------
4,223
-----------
Finland - 4.7%
Nokia Oyj......................................... 33,000 5,983
Sonera Oyj........................................ 55,000 3,770
-----------
9,753
-----------
France - 4.7%
Alstom............................................ 47,100 1,570
Axa............................................... 15,000 2,091
Carrefour......................................... 15,000 2,766
Equant*........................................... 25,000 2,838
Groupe Danone..................................... 7,500 1,768
L'OREAL........................................... 2,300 1,845
Sanofi-Synthelabo*................................ 40,312 1,679
STMicroelectronics................................ 25,000 3,848
Total Fina, Series B.............................. 27,241 3,636
Vivendi........................................... 37,656 3,400
-----------
25,441
-----------
Germany - 7.3%
Allianz........................................... 7,200 $ 2,419
Bayer............................................. 40,000 1,894
Deutsche Bank..................................... 27,777 2,352
HypoVereinsbank................................... 20,000 1,366
Mannesmann........................................ 22,000 5,327
SAP............................................... 3,500 1,720
-----------
15,078
-----------
Ireland - 1.6%
Allied Irish Banks................................ 101,180 1,154
CRH............................................... 100,825 2,171
-----------
3,325
-----------
Italy - 1.2%
Mediolanum........................................ 200,000 2,619
-----------
Japan - 26.0%
Canon............................................. 60,000 2,384
Fujitsu........................................... 100,000 4,561
Ito-Yokado........................................ 15,000 1,630
Kao............................................... 70,000 1,997
Matsushita Electric Industrial.................... 100,000 2,770
Murata Manufacturing.............................. 15,000 3,523
Nippon Telegraph & Telephone ..................... 272 4,659
NTT Data.......................................... 120 2,760
NTT Mobile Communications......................... 100 3,847
Orix.............................................. 20,000 4,506
Rohm.............................................. 12,000 5,027
Secom............................................. 20,000 2,202
Sharp............................................. 150,000 3,839
Sony.............................................. 20,000 5,931
Takeda Chemical Industries........................ 40,000 1,977
Toshiba........................................... 290,000 2,214
-----------
53,827
-----------
Netherlands - 7.5%
AEGON............................................. 16,440 1,588
Akzo Nobel........................................ 32,000 1,605
ASM Lithography Holding *......................... 22,000 2,444
Fortis............................................ 50,000 1,800
Getronics......................................... 35,000 2,792
ING Groep......................................... 40,000 2,415
Koninklijke Ahold................................. 50,247 1,487
Wolters Kluwer.................................... 40,000 1,354
-----------
15,485
-----------
New Zealand - 1.1%
Telecom of New Zealand............................ 485,802 2,284
-----------
Portugal - 1.8%
Jeronimo Martins.................................. 51,996 1,330
Portugal Telecom, Registered...................... 220,000 2,413
-----------
3,743
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
43
<PAGE>
Schedule of Investments
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
Spain - 4.0%
Amadeus Global Travel
Distribution Class A *........................ 150,000 $ 2,380
Banco Bilbao Vizcaya............................ 135,000 1,923
Telefonica *.................................... 162,364 4,056
----------
8,359
----------
Sweden - 6.0%
ABB AB, Class B *............................... 22,390 2,729
Ericsson LM, Class B............................ 80,000 5,143
Skandia Forsakrings............................. 100,000 3,021
WM-Data, Class B................................ 25,000 1,546
----------
12,439
----------
Switzerland - 5.7%
Adecco *........................................ 2,500 1,935
Credit Suisse, Registered....................... 15,000 2,981
Nestle, Registered.............................. 600 1,099
Novartis, Registered............................ 1,103 1,620
Roche Holding, Class GS......................... 200 2,374
Zurich Allied................................... 3,000 1,711
----------
11,720
----------
United Kingdom - 14.9%
BP Amoco........................................ 465,870 4,692
Cable & Wireless................................ 106,209 1,796
Glaxo Wellcome.................................. 100,653 2,852
Lloyds TSB Group................................ 205,091 2,561
Pearson......................................... 60,000 1,946
Prudential...................................... 175,643 3,447
Rentokil Initial................................ 250,000 911
Shell Transport & Trading....................... 400,000 3,323
SmithKline Beecham.............................. 143,898 1,829
Standard Chartered.............................. 151,872 2,367
Unilever........................................ 214,285 1,497
Vodafone AirTouch Group......................... 750,000 3,698
----------
30,919
----------
Total Foreign Common Stocks
(Cost $114,099)................................... 203,596
----------
Total Investments - 98.2%
(Cost $114,099)................................... 203,596
----------
Net Other Assets and Liabilities - 1.8%............. 3,686
----------
Total Net Assets - 100.0%........................... $ 207,282
==========
</TABLE>
_________________________________
* Non-income producing security
The accompanying notes are an integral part of the financial statements.
44
<PAGE>
DECEMBER 31, 1999
Schedule of Investments
SMALL CAP FUND\\(US)\\
(Formerly Small Cap Growth Fund\\(US))\\
[PIE CHART APPEARS HERE]
U.S. Government Agency Obligation Basic Materials
7.9% 3.2%
Utilities Capital Goods
0.8% 11.0%
Communication
Transportation Services
2.8% 2.7%
Consumer
Technology Cyclicals
21.2% 16.7%
Health Care
3.0%
Financial
11.6%
Energy Consumer Staples
4.8% 14.4%
Net Other Assets and Liabilities (0.1)%
% of Total Assets
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 92.2%
Basic Materials - 3.2%
Caraustar Industries............................ 12,700 $ 305
Chesapeake...................................... 9,400 287
CK Witco........................................ 19,200 257
Hanna (M.A.).................................... 20,900 229
OM Group........................................ 10,400 358
Rayonier........................................ 7,300 353
-----------
1,789
-----------
Capital Goods - 11.0%
CIRCOR International*........................... 5,400 56
CLARCOR......................................... 16,700 301
Cordant Technologies............................ 9,300 307
Dycom Industries*............................... 13,500 595
Federal Signal.................................. 22,900 368
Griffon*........................................ 30,600 239
Harsco.......................................... 8,200 260
IDEX............................................ 9,300 282
Jacobs Engineering Group*....................... 20,100 653
Mettler-Toledo International*................... 17,900 684
Micrel*......................................... 18,500 1,053
Milacron........................................ 23,400 360
Mueller Industries*............................. 10,900 395
Regal-Beloit.................................... 16,100 332
Smith (A.O.).................................... 16,400 359
-----------
6,244
-----------
Communication Services - 2.7%
NEXTLINK Communications
Class A*...................................... 11,700 972
Pinnacle Holdings............................... 13,000 551
-----------
1,523
-----------
Consumer Cyclicals - 16.7%
American Eagle Outfitters*...................... 8,100 $ 365
Arvin Industries................................ 12,500 355
Avis Rent A Car*................................ 20,300 519
Borg-Warner Automotive.......................... 13,700 555
Brightpoint*.................................... 37,700 495
Cost Plus*...................................... 16,300 581
DBT Online*..................................... 7,000 171
Diamond Technology Partners* ................... 2,500 215
Dollar Tree Stores*............................. 16,600 804
D.R. Horton..................................... 28,400 392
Extended Stay America*.......................... 4,700 36
Furniture Brands International* ................ 18,600 409
Getty Images*................................... 3,300 161
HON INDUSTRIES.................................. 14,000 307
Kellwood........................................ 16,300 317
Linens `n Things*............................... 10,400 308
Morrison Management Specialists................. 2,100 45
NFO Worldwide................................... 2,600 58
O'Reilly Automotive*............................ 14,700 316
Profit Recovery Group International*............ 18,700 497
Scotts (The), Class A*.......................... 13,200 531
Talbots (The)................................... 4,400 196
Tickets.com*.................................... 2,700 39
Too*............................................ 11,600 200
Tweeter Home Entertainment Group*............... 11,300 401
West Marine*.................................... 6,500 54
Wolverine World Wide............................ 24,400 267
Zale*........................................... 17,700 856
-----------
9,450
-----------
Consumer Staples - 14.4%
Acme Communications*............................ 2,700 90
American Italian Pasta, Class A*................ 6,500 200
AMFM*........................................... 2,700 211
BJ's Wholesale Club*............................ 7,200 263
Bright Horizons Family Solutions*............... 7,700 144
Casey's General Stores.......................... 30,400 317
CEC Entertainment*.............................. 17,500 497
Cheesecake Factory (The)*....................... 10,800 378
Consolidated Graphics*.......................... 8,000 120
Corn Products International..................... 15,100 495
Cumulus Media, Class A*......................... 1,500 76
Duane Reade*.................................... 12,300 339
Emmis Communications*........................... 3,200 399
G & K Services, Class A*........................ 9,800 317
HotJobs.com*.................................... 3,800 166
Insight Communications*......................... 9,900 293
Modis Professional Services*.................... 30,800 439
Radio One*...................................... 5,700 524
Ruby Tuesday.................................... 7,800 142
Sonic*.......................................... 14,900 425
Suiza Foods*.................................... 14,800 586
Universal Foods................................. 34,400 701
USA Networks*................................... 11,800 652
Westwood One*................................... 4,400 334
-----------
8,108
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
45
<PAGE>
Schedule of Investments
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
Energy - 4.8%
Forest Oil*..................................... 4,300 $ 189
Helmerich & Payne............................... 9,100 198
Louis Dreyfus Natural Gas*...................... 10,600 192
NICOR........................................... 4,500 471
NUI............................................. 8,800 232
Ocean Energy*................................... 3,300 181
Oceaneering International*...................... 6,800 251
Santa Fe Snyder*................................ 1,800 334
Titan Exploration*.............................. 3,700 183
Tom Brown*...................................... 2,700 170
Valero Energy................................... 5,400 306
----------
2,707
----------
Financial - 11.6%
Ambac Financial Group........................... 5,900 308
Bank United, Class A............................ 7,200 196
Banknorth Group................................. 10,400 278
Cabot Industrial Trust, REIT.................... 20,300 373
Chateau Communities, REIT....................... 7,900 205
Doral Financial................................. 9,700 119
Enhance Financial Services Group................ 18,700 304
Everest Reinsurance Holdings.................... 10,800 241
Farm Family Holdings*........................... 7,700 325
Financial Federal*.............................. 18,100 413
Horace Mann Educators........................... 12,900 253
Kilroy Realty, REIT............................. 12,100 266
Liberty Financial............................... 10,400 239
MeriStar Hospitality, REIT...................... 5,700 91
Metris.......................................... 9,600 343
North Fork Bancorporation....................... 27,800 487
Pan Pacific Retail Properties, REIT............. 18,800 307
Peoples Heritage Financial Group................ 15,100 227
Prentiss Properties Trust, REIT................. 15,300 321
Reckson Associates Realty, REIT................. 13,900 285
Sovereign Bancorp............................... 14,000 104
Webster Financial............................... 10,500 247
Westamerica Bancorporation...................... 14,400 402
----------
6,534
----------
Health Care - 3.0%
AmeriSource Health, Class A*.................... 7,400 112
CIMA Labs*...................................... 2,400 31
CONMED*......................................... 9,300 241
Neurocrine Biosciences.......................... 1,300 32
Pharmacopeia *.................................. 3,200 72
Trimeris*....................................... 7,600 180
United Therapeutics*............................ 6,500 299
Varian Medical Systems*......................... 19,900 593
Wesley Jessen VisionCare*....................... 3,800 144
Women First HealthCare*......................... 3,500 18
----------
1,722
----------
Technology - 21.2%
Applied Micro Circuits*......................... 11,000 1,400
BindView Development*........................... 8,800 437
CNET*........................................... 5,700 323
Concord Communications*......................... 6,500 288
eSPEED, Class A*................................ 2,400 $ 85
Etec Systems*................................... 13,600 610
Exchange Applications*.......................... 4,300 240
Gemstar International Group..................... 14,400 1,026
Henry (Jack) & Associates....................... 8,000 430
Lam Research*................................... 2,600 290
Legato Systems*................................. 6,800 468
Metamor Worldwide*.............................. 9,600 280
Metro Information Services*..................... 15,200 365
Network Appliance............................... 15,000 1,246
Novellus Systems *.............................. 2,300 282
ONYX Software*.................................. 2,700 100
PMC-Sierra*..................................... 5,500 882
RSA Security*................................... 1,800 140
Sanchez Computer Associates*.................... 5,500 227
Synopsys*....................................... 11,600 774
Technology Solutions*........................... 7,100 233
Teradyne*....................................... 7,300 482
VERITAS Software*............................... 9,440 1,351
----------
11,959
----------
Transportation - 2.8%
Alexander & Baldwin............................. 13,900 317
Forward Air *................................... 7,800 338
M.S. Carriers*.................................. 13,200 315
Mesaba Holdings*................................ 20,300 232
USFreightways................................... 7,500 359
----------
1,561
----------
Utilities - 0.8%
Water Service Group ............................ 7,900 240
Sierra Pacific Resources........................ 12,200 211
----------
451
----------
Total Common Stocks
(Cost $48,005).................................... 52,048
----------
U.S. GOVERNMENT AGENCY
OBLIGATION (A) - 7.9%
Freddie Mac
2.000%, 01/06/00............................... $ 4,490 4,489
----------
Total U.S. Government Agency Obligation
(Cost $4,489)..................................... 4,489
----------
Total Investments - 100.1%
(Cost $52,494).................................... 56,537
----------
Net Other Assets and Liabilities - (0.1)%........... (64)
----------
Total Net Assets - 100.0%........................... $ 56,473
==========
</TABLE>
_____________________________
* Non-income producing security
(A) Rate noted represents annualized discount yield at the time of purchase.
REIT Real Estate Investment Trust
The accompanying notes are an integral part of the financial statements.
46
<PAGE>
DECEMBER 31, 1999
Schedule of Investments
REAL ESTATE FUND\\(US)\\
[PIE CHART]
Repurchase Agreement and
Net Other Assets and Liabilities
1.5%
Storage Diversified
1.6% 13.3%
Retail 19.1%
Hotels
6.3%
Industrial
8.7%
Residential
24.1%
Office Properties
25.4%
% of Total Net Assets
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
- -----------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 98.5%
Diversified - 13.3%
Catellus Development*............................ 10,600 $ 136
Colonial Properties Trust........................ 5,300 123
Crescent Real Estate Equities.................... 5,100 94
Duke-Weeks Realty................................ 17,130 334
Vornado Operating*............................... 430 3
Vornado Realty Trust............................. 9,700 315
----------
1,005
----------
Hotels - 6.3%
Host Marriott.................................... 14,000 116
Interstate Hotels*............................... 666 2
Starwood Hotels & Resorts
Worldwide...................................... 12,600 296
Wyndham International, Class A*.................. 20,000 59
----------
473
----------
Industrial - 8.7%
CenterPoint Properties........................... 6,900 247
Pacific Gulf Properties.......................... 4,900 99
ProLogis Trust................................... 16,300 314
----------
660
----------
Office Properties - 25.4%
Alexandria Real Estate Equities.................. 5,100 162
Arden Realty..................................... 6,100 122
Boston Properties................................ 8,000 249
Equity Office Properties Trust................... 22,300 549
Highwoods Properties............................. 6,200 144
Parkway Properties............................... 2,500 72
Reckson Associates Realty........................ 8,500 174
Spieker Properties............................... 6,300 230
Trizec Hahn...................................... 12,800 216
----------
1,918
----------
Residential - 24.1%
Apartment Investment &
Management...................................... 7,800 $ 311
Archstone Communities Trust...................... 15,500 318
AvalonBay Communities............................ 6,864 236
BRE Properties, Class A.......................... 8,900 202
Equity Residential Properties Trust.............. 9,300 397
Manufactures Home Communities.................... 8,100 197
Post Properties.................................. 4,100 157
----------
1,818
----------
Retail - 19.1%
Cadillac Fairview*............................... 6,500 149
CBL & Associates Properties...................... 4,000 82
Chelsea GCA Realty............................... 1,200 36
Developers Diversified Realty.................... 7,000 90
Federal Realty Investment Trust.................. 4,100 77
General Growth Properties........................ 2,300 64
Kimco Realty..................................... 7,200 244
Mills............................................ 7,000 125
Pan Pacific Retail Properties.................... 8,300 135
Rouse............................................ 4,500 96
Simon Property Group............................. 9,500 218
Weingarten Realty Investors...................... 3,200 125
----------
1,441
----------
Storage - 1.6%
Shurgard Storage Centers......................... 5,400 125
----------
Total Common Stocks
(Cost $8,505)...................................... 7,440
----------
REPURCHASE AGREEMENT - 0.7%
Morgan Stanley
5.250%, dated 12/31/99, matures
01/03/00, repurchase price
$54,905 (collateralized by
U.S. Treasury Instruments,
total market value: $56,506)..................... $ 55 55
----------
Total Repurchase Agreement
(Cost $55)........................................... 55
----------
Total Investments - 99.2%
(Cost $8,560)................................. 7,495
----------
Net Other Assets and Liabilities - 0.8%............. 57
----------
Total Net Assets - 100.0%........................... $ 7,552
==========
</TABLE>
_______________________________________
* Non-income producing security
The accompanying notes are an integral part of the financial statements.
47
<PAGE>
Schedule of Investments
ASIAN TIGERS FUND\\(US)\\
[PIE CHART]
Utilities Basic Materials
5.2% 4.7%
Transportation Capital Goods
2.8% 11.3%
Technology Chemicals/
12.7% Drugs
4.7%
Communications
12.6%
Real Estate
9.2%
Net Other Assets
and Liabilities Consumer
3.5% Cyclicals
2.6%
Mutual Funds
1.9% Consumer Staples
4.4%
Financial
15.2%
Energy Diversified
1.3% 7.9%
% of Total Net Assets
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
- ------------------------------------------------------------------------------
<S> <C> <C>
FOREIGN COMMON STOCKS - 94.2%
China - 26.7%
Amoy Properties................................. 230,000 $ 194
Beijing Datang Power Generation,
Class H....................................... 810,000 133
Beijing Enterprises Holdings.................... 58,000 91
Cable & Wireless HKT............................ 491,800 1,420
Cheung Kong Holdings............................ 126,000 1,601
China Resources Enterprise...................... 102,000 163
China Telecom (Hong Kong)*...................... 34,000 213
Citic Pacific................................... 62,000 233
CLP Holdings.................................... 125,000 576
Hang Seng Bank.................................. 93,000 1,062
Henderson Land Development...................... 70,000 449
Hong Kong & China Gas........................... 201,952 277
Hong Kong Electric Holdings..................... 85,000 266
HSBC Holdings................................... 75,600 1,060
Hutchison Whampoa............................... 162,000 2,355
Johnson Electric Holdings....................... 141,600 909
New World Development........................... 79,000 178
Shanghai Petrochemical, Class H ................ 620,000 97
Sun Hung Kai Properties......................... 142,000 1,480
Swire Pacific, Class A.......................... 104,000 614
Varitronix International........................ 148,000 341
----------
13,712
----------
India - 14.4%
Gujarat Ambuja Cements, SP GDR.................. 60,000 $ 460
Hindalco Industries, SP GDR..................... 18,000 424
ICICI, SP ADR*.................................. 10,500 146
Indian Petrochemicals, SP GDR .................. 65,000 640
Infosys Technologies, SP ADR.................... 2,000 660
ITC, SP GDR..................................... 48,700 947
Larsen & Toubro, GDR............................ 25,000 831
Mahanagar Telephone Nigam, GDR.................. 31,000 349
Mahindra & Mahindra, SP GDR*.................... 35,800 397
Ranbaxy Laboratories, GDR....................... 26,200 579
Reliance Industries, GDR........................ 52,000 744
Satyam Infoway, ADR*............................ 4,000 620
State Bank of India, GDR........................ 15,500 189
Videsh Sanchar Nigam, GDR....................... 17,000 418
----------
7,404
----------
Indonesia - 2.5%
PT Astra International*......................... 155,000 83
PT Bank Pan Indonesia*.......................... 615,000 59
PT Gudang Garam................................. 77,500 209
PT Hanjaya Mandala Sampoerna*................... 38,000 97
PT Indah Kiat Pulp & Paper*..................... 404,805 159
PT Indah Kiat Pulp & Paper WTS*
(Expires 07/11/02)............................ 29,288 8
PT Indofood Sukses Makmur*...................... 162,000 20
PT Semen Gresik (Persero)....................... 51,100 81
PT Telekomunikasi Indonesia (A)................. 713,320 406
----------
1,305
----------
Malaysia - 3.4%
British American Tobacco........................ 26,600 203
Malakoff........................................ 105,000 276
Malayan Banking................................. 60,000 213
Resorts World................................... 35,000 100
Sime Darby...................................... 230,000 292
Sime UEP Properties............................. 45,000 63
Telekom Malaysia................................ 25,000 97
Tenaga Nasional................................. 160,000 413
United Engineers (Malaysia)*.................... 50,000 80
----------
1,737
----------
Philippines - 1.5%
Ayala Land...................................... 240,000 63
Belle WTS* (Expires 10/06/00)................... 100,000 1
Manila Electric, Class B........................ 29,920 85
Metropolitan Bank & Trust....................... 23,100 166
Petron.......................................... 375,000 30
Philippine Long Distance Telephone.............. 2,500 63
Philippine Long Distance Telephone
SP ADR........................................ 6,000 155
San Miguel, Class B............................. 48,595 69
SM Prime Holdings............................... 577,000 109
----------
741
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
48
<PAGE>
DECEMBER 31, 1999
Schedule of Investments
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
Singapore - 11.4%
Chartered Semiconductor
Manufacturing*.................................... 27,000 $ 148
City Developments................................... 65,800 385
DBS Group Holdings.................................. 72,313 1,185
DBS Land............................................ 97,250 192
Keppel Telcommunications &
Transportation..................................... 60,000 98
NatSteel Electronics................................ 58,000 306
Neptune Orient Lines*............................... 115,000 154
Overseas-Chinese Banking............................ 63,468 583
Singapore Airlines.................................. 84,700 961
Singapore Press Holdings*........................... 27,582 600
Singapore Technologies Engineering.................. 124,000 192
Singapore Telecommunications........................ 280,000 578
United Overseas Bank................................ 52,012 459
--------
5,841
--------
South Korea - 17.2%
H&CB*............................................... 11,146 354
Hanvit Bank*........................................ 75,000 254
Hyundai Motor*...................................... 18,000 285
Kookmin Bank........................................ 45,909 720
Korea Electric Power................................ 34,550 1,071
Korea Telecom....................................... 7,200 1,135
L.G. Chemical....................................... 10,000 316
Pohang Iron & Steel................................. 6,000 661
Samsung Electro-Mechanics........................... 4,000 266
Samsung Electronics................................. 10,186 2,386
Samsung SDI......................................... 3,000 125
Shinhan Bank........................................ 24,000 260
SK Telecom.......................................... 271 971
--------
8,804
--------
Taiwan - 13.0%
Accton Technology, GDR*............................. 102,713 750
Acer, GDR*.......................................... 80,500 1,149
ASE Test*........................................... 48,500 1,182
China Steel, SP GDR................................. 31,400 470
Evergreen Marine, SP GDR*........................... 38,934 332
Far Eastern Textile, GDR*........................... 15,000 360
Hon Hai Precision Industry, GDR*.................... 31,000 604
Standard Foods Taiwan, GDR*......................... 24,691 102
Taiwan Semiconductor
Manufacturing, SP ADR*............................ 38,585 1,736
--------
6,685
--------
Thailand (F) - 4.1%
Advanced Info Service*.............................. 19,000 319
Bangkok Bank*....................................... 80,000 202
BEC World........................................... 45,000 299
Delta Electronics (Thailand)........................ 17,100 203
PTT Exploration & Production*....................... 40,000 246
Siam Cement*........................................ 5,000 166
TelecomAsia*........................................ 200,000 260
Thai Farmers Bank* (A).............................. 200,000 335
Thai Union Frozen Products.......................... 15,000 57
--------
2,087
--------
Total Foreign Common Stocks
(Cost $34,805)........................................ 48,316
--------
FOREIGN PREFERRED STOCK (F) - 0.4%
Thailand - 0.4%
Siam Commercial Bank*............................... 150,000 183
--------
Total Foreign Preferred Stock
(Cost $211)........................................... 183
--------
INVESTMENT COMPANIES - 1.9%
Taiwan Fund......................................... 22,500 458
Taiwan Index Fund*.................................. 40,000 500
--------
Total Investment Companies
(Cost $942)........................................... 958
--------
Total Investments - 96.5%
(Cost $35,958)........................................ 49,457
--------
Net Other Assets and Liabilities - 3.5%................. 1,820
--------
Total Net Assets - 100.0%............................... $ 51,277
========
</TABLE>
_________________
* Non-income producing security
(A) Securities exempt from registration pursuant to Rule 144A under the
Securities Act of 1933, as amended. These securities may be resold, in
transactions exempt from registration, to qualified institutional
buyers. At December 31, 1999, these securities amounted to $740,316 or
1.4% of net assets.
(F) Foreign Registry Shares
ADR American Depositary Receipt
GDR Global Depositary Receipt
SP ADR Sponsored American Depositary Receipt
SP GDR Sponsored Global Depositary Receipt
WTS Warrants
The accompanying notes are an integral part of the financial statements.
49
<PAGE>
Schedule of Investments
Latin America Equity Fund(US)
[PIE CHART]
Real Estate Net Other Assets and Liabilities
2.1% 2.0%
Energy Technology
3.0% 1.5%
Consumer Cyclicals Health Care
3.0% .9%
Utilities Communications
4.1% 33.1%
Capital Goods
8.3%
Financial
9.2%
Consumer Staples
23.1%
Basic Materials
% of Total Net Assets 9.7%
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
FOREIGN COMMON STOCKS - 69.8%
Argentina - 5.1%
Banco Galicia y Buenos Aires
SP ADR........................................... 20,808 $ 412
Banco Hipotecario.................................. 22,000 304
Cresud............................................. 58,718 57
El Sitio*.......................................... 702 26
IRSA Inversiones y Representaciones
Class B.......................................... 106,432 345
Telecom Argentina Stet - France
Telecom, SP ADR.................................. 11,700 401
-------
1,545
-------
Brazil - 19.3%
Bompreco Supermercado do
Nordeste, SP GDR................................. 31,500 228
CIA Brasileira de Distribuicao
Grupo Pao de Acucar, SP GDR...................... 29,461 952
CIA Cervejaria Brahma, SP ADR...................... 3,243 45
CIA Paranaense de Energia-Copel
SP ADR........................................... 70,000 652
CIA Riograndense de
Telecomunicacoes*................................ 1,033,000 320
CIA Vale do Rio Doce............................... 3,000 70
Embratel Participacoes, ADR........................ 52,000 1,417
Tele Celular Sul Participacoes, ADR................ 5,000 159
Tele Centro Sul Participacoes*..................... 47,000,000 505
Tele Centro Sul Participacoes, ADR................. 2,700 245
Tele Norte Leste Participacoes..................... 21,000,000 378
Tele Norte Leste Participacoes, ADR................ 12,570 320
Telecomunicacoes Brasileiras SP ADR*............... 4,000 --
Uniao de Bancos Brasileiros SP GDR................. 21,000 633
-------
5,924
-------
Chile - 5.9%......................................... 18,000 367
Chilectra, SP ADR
CIA de Telecommunicaciones
de Chile, SP ADR................................. 9,125 167
Embotelladora Andina, Class A, ADR 12,500 223
Empresa Nacional de Electricidad
SP ADR........................................... 17,000 241
Laboratorio Chile, SP ADR.......................... 15,300 275
Santa Isabel, SP ADR............................... 15,000 146
Vina Concha Y Toro, SP ADR......................... 10,500 396
-------
1,815
-------
Luxembourg - 0.5%
Quilmes Industrial, ADR............................ 14,000 167
-------
Mexico - 36.1%
Alfa, Class A*..................................... 108,600 510
Carso Global Telecom, Class A1*.................... 106,000 996
Cemex, SP ADR*..................................... 28,260 788
Cemex, SP ADR, WTS*
(expires 12/13/02)............................... 1,766 7
Consorcio Ara*..................................... 174,000 288
Corporacion Interamericana de
Entretenimiento, Class B*........................ 151,000 603
Fomento Economico Mexicano
SP ADR........................................... 25,500 1,135
Grupo Continental.................................. 140,000 204
Grupo Elektra...................................... 154,000 152
Grupo Elektra, SP GDR.............................. 16,000 154
Grupo Financiero Banamex
Accival, Class O*................................ 126,000 505
Grupo Financiero Bancomer, Class O................. 1,413,000 590
Grupo Sanborns, Series B1*......................... 125,000 277
Grupo Televisa, SP GDR*............................ 17,500 1,194
Organizacion Soriana, Class B* .................... 116,000 533
Sigma Alimentos, Series B.......................... 133,447 282
Telefonos de Mexico, Class L ADR................... 23,100 2,599
TV Azteca, SP ADR.................................. 29,000 261
-------
11,078
-------
Peru - 1.5%
Compania de Minas Buenaventura
SP ADR........................................... 17,000 273
Telefonica de Peru, SP ADR......................... 13,500 181
-------
454
-------
Spain - 1.4%
Terra Networks, SP ADR*.............................. 8,000 438
-------
Total Foreign Common Stocks
(Cost $16,613)......................................... 21,421
-------
</TABLE>
The accompanying notes are an intergral part of the financial statements.
50
<PAGE>
DECEMBER 31, 1999
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
DOMESTIC COMMON STOCK - 2.6%
United States - 2.6%
FirstCom*........................................ 22,000 $ 809
----------
Total Domestic Common Stock
(Cost $335)........................................ 809
----------
FOREIGN PREFERRED STOCKS - 25.6%
Brazil - 25.6%
Banco Bradesco................................... 46,000,000 361
Banco Bradesco, RTS.............................. 2,986,968 12
CIA Cervejaria Brahma............................ 999,000 730
CIA Paulista de Forca e Luz,
Class A* (A)................................... 4,843 --
CIA Siderurgica de Tubarao*...................... 25,000,000 408
CIA Vale do Rio Doce, Class A*................... 21,850 605
CIA Vale do Rio Doce, Class B (A)................ 25,000 --
Gerdau........................................... 12,702,000 337
Globo Cabo*...................................... 520,000 982
Globo Cabo, Receipts*............................ 94,389 174
Industrias Klabin de Papel e
Celulose*...................................... 510,000 423
Investimentos Itau............................... 889,000 920
Petroleo Brasileiro.............................. 3,670,000 935
Sadia............................................ 342,600 311
Tele Celular Sul Participacoes................... 53,000,000 176
Tele Centro Sul Participacoes.................... 10,000,000 183
Tele Norte Leste Participacoes................... 11,800,000 317
Telebras......................................... 2,700 347
Telesp Celular, Class B ......................... 8,000,000 633
----------
Total Foreign Preferred Stocks
(Cost $4,790).................................... 7,854
----------
CALL OPTION PURCHASED (B) - 0.0%
Argentina (B) - 0.0%
Banco Hipotecario Call Option*
(Strike price $7, expires 02/01/04)............ 55 $ 3
----------
Total Call Option Purchased
(Cost $3).......................................... 3
----------
Total Investments - 98.0%
(Cost $21,741)..................................... 30,087
----------
Net Other Assets and Liabilities - 2.0%.............. 597
----------
Total Net Assets - 100.0%............................ $ 30,684
==========
</TABLE>
___________________________
* Non-income producing security
(A) Less than $500 at market value.
(B) Rounds to less than 0.1%.
ADR American Depositary Receipt
RTS Rights
SP ADR Sponsored American Depositary Receipt
SP GDR Sponsored Global Depositary Receipt
WTS Warrants
The accompanying notes are an integral part of the financial statements.
51
<PAGE>
Statement of Assets and Liabilities (000)
December 31, 1999
<TABLE>
<CAPTION>
Treasury Government Tax-Exempt
Money Market Money Market Money Market Money Market
Fund\\(US)\\ Fund\\(US)\\ Fund\\(US)\\ Fund\\(US)\\
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities at cost..................................... $185,968 $ 340,612 $ 933,970 $ 319,323
Repurchase agreements............................................. 152,629 220,465 446,204 30,042
Net unrealized appreciation (depreciation)........................ -- -- -- --
-------- --------- ----------- ----------
Total investments at market value................................. 338,597 561,077 1,380,174 349,365
Cash.............................................................. -- -- -- --
Foreign currency*................................................. -- -- -- --
Receivable for portfolio shares sold.............................. -- 72 219 1
Dividends and interest receivable................................. 2,290 1,751 10,811 2,135
Tax reclaim receivable............................................ -- -- -- --
Deferred organizational cost...................................... -- -- -- --
Other assets...................................................... 19 9 43 5
-------- --------- ----------- ----------
Total assets...................................................... 340,906 562,909 1,391,247 351,506
-------- --------- ----------- ----------
LIABILITIES:
Distribution payable.............................................. 1,185 1,642 4,742 782
Payable due to custodian.......................................... -- -- -- 10
Payable for investment securities purchased....................... -- -- -- --
Payable for portfolio shares redeemed............................. 1 540 337 10
Payable for depreciation on forward foreign currency contracts.... -- -- -- --
Advisory fee payable.............................................. 52 98 226 56
Administration fee payable........................................ 21 38 83 23
Trustees' fees payable............................................ 1 1 3 1
Distribution fee (Note 3)......................................... 2 20 48 13
Shareholder servicing fee (Note 3)................................ -- 7 20 --
Accrued expenses and other payables............................... 42 12 10 26
-------- --------- ----------- ----------
Total liabilities................................................. 1,304 2,358 5,469 921
-------- --------- ----------- ----------
NET ASSETS.......................................................... $339,602 $ 560,551 $ 1,385,778 $ 350,585
======== ========= =========== ==========
NET ASSETS consist of:
Paid in capital .................................................. $339,595 $ 560,523 $ 1,385,774 $ 350,586
Undistributed (distributions in excess of) net investment income 9 32 4 --
Accumulated net realized gain (loss) on investments
and foreign currency transactions................................ (2) (4) -- (1)
Net unrealized appreciation (depreciation) on investments
and foreign currency related transactions........................ -- -- -- --
-------- --------- ----------- ----------
TOTAL NET ASSETS.................................................... $339,602 $ 560,551 $ 1,385,778 $ 350,585
======== ========= =========== ==========
SHARES OF BENEFICIAL INTEREST
Common Share Class:
Net Assets........................................................ $327,906 $ 464,520 $ 1,138,123 $ 284,455
======== ========= =========== ==========
Shares of beneficial interest outstanding......................... 327,900 464,490 1,138,123 284,456
======== ========= =========== ==========
Net Asset Value, Offering and Redemption - Price Per Share.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ========= =========== ==========
Investor Share Class:
Net Assets........................................................ $ 11,696 $ 96,031 $ 247,655 $ 66,130
======== ========= =========== ==========
Shares of beneficial interest outstanding......................... 11,694 96,034 247,652 66,131
======== ========= =========== ==========
Net Asset Value, Offering and Redemption - Price Per Share.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ========= =========== ==========
</TABLE>
*The cost of foreign currency for the International Fixed Income Fund (US) and
the International Equity Fund (US) were $2 and $1,037, respectively.
The accompanying notes are an integral part of the financial statements.
52
<PAGE>
DECEMBER 31, 1999
<TABLE>
<CAPTION>
Tax-Exempt International International
Fixed Income Fixed Income Fixed Income Balanced Value Growth Equity Small Cap Real Estate
Fund\\(US)\\ Fund\\(US)\\ Fund\\(US)\\ Fund\\(US)\\ Fund\\(US)\\ Fund\\(US)\\ Fund\\(US)\\ Fund\\(US)\\ Fund\\(US)\\
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 187,371 $ 29,692 $ 14,654 $ 75,199 $ 144,977 $ 137,231 $ 114,099 $ 52,494 $ 8,505
5,480 -- -- -- -- 2,100 -- -- 55
(5,520) 93 (533) 11,722 11,840 59,959 89,497 4,043 (1,065)
------------ -------- --------- --------- --------- --------- ---------- --------- --------
187,331 29,785 14,121 86,921 156,817 199,290 203,596 56,537 7,495
-- 10 -- 28 -- -- 2,498 134 --
-- -- 2 -- -- -- 1,037 -- --
74 -- -- 168 205 352 205 33 --
2,248 395 415 332 192 69 30 54 46
-- -- 6 -- -- -- 147 -- --
-- -- -- -- -- -- -- -- 15
8 1 -- 2 3 41 3 1 7
------------ -------- --------- --------- --------- --------- ---------- --------- --------
189,661 30,191 14,544 87,451 157,217 199,752 207,516 56,759 7,563
------------ -------- --------- --------- --------- --------- ---------- --------- --------
-- -- -- -- -- -- -- -- --
-- -- 27 -- -- -- -- -- --
-- -- -- -- -- -- -- 150 --
98 90 -- -- 25 -- 5 71 --
-- -- 92 -- -- -- -- -- --
79 13 10 51 105 133 164 36 4
22 9 6 18 24 29 30 11 1
1 -- -- -- -- -- -- -- --
-- -- -- 1 1 1 -- -- --
-- -- -- 1 1 1 -- -- --
11 7 9 11 12 16 35 18 6
------------ -------- --------- --------- --------- --------- ---------- --------- --------
211 119 144 82 168 180 234 286 11
------------ -------- --------- --------- --------- --------- ---------- --------- --------
$ 189,450 $ 30,072 $ 14,400 $ 87,369 $ 157,049 $ 199,572 $ 207,282 $ 56,473 $ 7,552
============ ======== ========= ========= ========= ========= ========== ========= ========
$ 200,560 $ 31,609 $ 15,118 $ 73,556 $ 136,194 $ 136,359 $ 115,476 $ 47,462 $ 8,775
9 1 (42) -- 1 -- (1,179) -- --
(5,599) (1,631) (57) 2,091 9,014 3,254 3,496 4,968 (158)
(5,520) 93 (619) 11,722 11,840 59,959 89,489 4,043 (1,065)
------------ -------- --------- --------- --------- --------- ---------- --------- --------
$ 189,450 $ 30,072 $ 14,400 $ 87,369 $ 157,049 $ 199,572 $ 207,282 $ 56,473 $ 7,552
============ ======== ========= ========= ========= ========= ========== ========= ========
$ 189,048 $ 29,694 $ 14,367 $ 84,151 $ 153,551 $ 195,804 $ 204,922 $ 55,901 $ 7,522
============ ======== ========= ========= ========= ========= ========== ========= ========
19,752 3,019 1,487 7,038 12,043 11,225 8,170 3,948 975
============ ======== ========= ========= ========= ========= ========== ========= ========
$ 9.57 $ 9.84 $ 9.66 $ 11.96 $ 12.75 $ 17.44 $ 25.08 $ 14.16 $ 7.72
============ ======== ========= ========= ========= ========= ========== ========= ========
$ 402 $ 378 $ 33 $ 3,218 $ 3,498 $ 3,768 $ 2,360 $ 572 $ 30
============ ======== ========= ========= ========= ========= ========== ========= ========
42 38 3 268 275 218 95 41 3
============ ======== ========= ========= ========= ========= ========== ========= ========
$ 9.62 $ 9.81 $ 9.66 $ 11.99 $ 12.74 $ 17.30 $ 24.87 $ 13.96 $ 9.89
============ ======== ========= ========= ========= ========= ========== ========= ========
</TABLE>
53
<PAGE>
Statement of Assets and Liabilities (000)
December 31, 1999
<TABLE>
<CAPTION>
Latin America
Asian Tigers Equity
Fund\\(US)\\ Fund\\(US)\\
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Investment securities at cost ................................................ $ 35,958 $ 21,741
Net unrealized appreciation .................................................. 13,499 8,346
----------- -----------
Total investments at market value ............................................ 49,457 30,087
Cash ........................................................................ 1,618 558
Foreign currency (Cost $23, $0, respectively)................................. 23 --
Receivable for portfolio shares sold ......................................... 401 47
Dividends and interest receivable ............................................ 24 86
Other assets ................................................................. 69 4
----------- -----------
Total assets ................................................................. 51,592 30,782
----------- -----------
LIABILITIES:
Payable for investment securities purchased................................... 42 --
Payable for portfolio shares redeemed ........................................ 206 57
Advisory fee payable ......................................................... 42 23
Administration fee payable ................................................... 12 8
Accrued expenses and other payables .......................................... 13 10
----------- -----------
Total liabilities ............................................................ 315 98
----------- -----------
NET ASSETS ..................................................................... $ 51,277 $ 30,684
=========== ===========
NET ASSETS consist of:
Paid in capital ............................................................. $ 47,273 $ 27,183
Distributions in excess of net investment income.............................. (65) (13)
Accumulated net realized loss on investments
and foreign currency transactions........................................... (9,428) (4,810)
Net unrealized appreciation on investments
and foreign currency related transactions................................... 13,497 8,324
----------- -----------
TOTAL NET ASSETS ............................................................... $ 51,277 $ 30,684
=========== ===========
SHARES OF BENEFICIAL INTEREST
Common Share Class:
Net Assets ................................................................... $ 50,994 $ 30,684
=========== ===========
Shares of beneficial interest outstanding .................................... 4,670 2,197
=========== ===========
Net Asset Value, Offering and Redemption - Price Per Share ..................... $ 10.92 $ 13.97
=========== ===========
Investor Share Class:
Net Assets ................................................................... $ 283 $ --
=========== ===========
Shares of beneficial interest outstanding .................................... 26 --
=========== ===========
Net Asset Value, Offering and Redemption - Price Per Share ..................... $ 10.79 $ --
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
54
<PAGE>
DECEMBER 31, 1999
Statement of Operations (000)
For the Year Ended December 31, 1999
<TABLE>
<CAPTION>
Treasury Government Tax-Exempt
Money Market Money Market Money Market Money Market
Fund\\(US)\\ Fund\\(US)\\ Fund\\(US)\\ Fund\\(US)\\
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest....................................................... $ 15,217 $ 26,289 $ 67,474 $ 10,234
------------ ------------ ------------ ------------
Total investment income........................................ 15,217 26,289 67,474 10,234
------------ ------------ ------------ ------------
EXPENSES:
Investment advisory fees (Note 5).............................. 1,089 1,028 4,546 1,081
Administration and fund accounting fees (Note 3)............... 504 809 1,987 503
Custody fees................................................... 8 22 55 19
Transfer agency fees........................................... 34 44 79 34
Professional fees.............................................. 33 47 102 33
Registration & filing fees..................................... 36 26 70 22
Printing fees.................................................. 21 36 88 21
Trustees' fees................................................. 8 13 34 8
Distribution fees (Note 3) (1)................................. 32 222 570 160
Shareholder servicing fees (Note 3) (2)........................ 32 222 570 160
Miscellaneous.................................................. 110 106 161 72
------------ ------------ ------------ ------------
Total expenses before waivers.................................. 1,907 2,575 8,262 2,113
Less: Investment advisory fees waived (Note 5)............... (466) -- (1,948) (463)
Less: Administration fees waived (Note 3).................... (249) (411) (1,039) (247)
Less: Shareholder servicing fees waived (Note 3)............. (32) (160) (323) (160)
------------ ------------ ------------ ------------
Net Expenses................................................... 1,160 2,004 4,952 1,243
------------ ------------ ------------ ------------
NET INVESTMENT INCOME.......................................... 14,057 24,285 62,522 8,991
------------ ------------ ------------ ------------
REALIZED GAIN ON INVESTMENTS
Net realized gain from securities transactions................. 3 -- -- --
------------ ------------ ------------ ------------
Net gain on investments........................................ 3 -- -- --
------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.................................... $ 14,060 $ 24,285 $ 62,522 $ 8,991
============ ============ ============ ============
</TABLE>
____________________________________
(1) All distribution fees are incurred at the Investor Share Class level.
(2) All shareholder servicing fees are incurred at the Investor Share Class
level.
55
<PAGE>
Statement of Operations (000)
For the Year Ended December 31, 1999
<TABLE>
<CAPTION>
Tax-Exempt International
Fixed Income Fixed Income Fixed Income Balanced
Fund\\(US)\\ Fund\\(US)\\ Fund\\(US)\\ Fund\\(US)\\
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends....................................................... $ -- $ 21 $ -- $ 876
Interest........................................................ 10,599 1,722 704 1,648
Less: foreign taxes withheld.................................... -- -- (9) --
------------ ------------ ------------ ------------
Total investment income......................................... 10,599 1,743 695 2,524
------------ ------------ ------------ ------------
EXPENSES:
Investment advisory fees (Note 5)............................... 996 203 126 595
Administration and fund accounting fees (Note 3)................ 295 94 66 181
Custody fees.................................................... 16 4 7 12
Transfer agency fees............................................ 28 22 21 24
Professional fees............................................... 23 14 13 18
Registration & filing fees...................................... 19 9 8 9
Printing fees................................................... 12 2 1 6
Trustees' fees.................................................. 4 1 -- 2
Distribution fees (Note 3) (1).................................. 1 1 -- 9
Shareholder servicing fees (Note 3) (2)......................... 1 1 -- 9
Amortization of deferred organization costs..................... -- -- -- --
Miscellaneous................................................... 1 1 2 6
------------ ------------ ------------ ------------
Total expenses before waivers................................... 1,396 352 244 871
Less: Investment advisory fees waived (Note 5)................ (166) (33) -- --
Less: Administration fees waived (Note 3)..................... (83) (17) (7) --
------------ ------------ ------------ ------------
Net Expenses.................................................... 1,147 302 237 871
------------ ------------ ------------ ------------
NET INVESTMENT INCOME (LOSS)...................................... 9,452 1,441 458 1,653
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) from securities transactions........... (5,565) (255) 96 7,090
Net realized loss from foreign currency transactions and
foreign currency contracts.................................... -- -- (279) --
Net change in unrealized appreciation (depreciation) of
investments..................................................... (7,586) (2,029) (1,761) (279)
Net change in unrealized appreciation (depreciation) on
foreign currency and translation of other assets and
liabilities in foreign currencies............................. -- -- (85) --
------------ ------------ ------------ ------------
Net gain (loss) on investments.................................. (13,151) (2,284) (2,029) 6,811
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS..................................... $ (3,699) $ (843) $ (1,571) $ 8,464
============ ============ ============ ============
</TABLE>
__________________________________________
(1) All distribution fees are incurred at the Investor Share Class level.
(2) All shareholder servicing fees are incurred at the Investor Share Class
level.
The accompanying notes are an integral part of the financial statements.
56
<PAGE>
DECEMBER 31, 1999
<TABLE>
<CAPTION>
International Latin America
Value Growth Equity Small Cap Real Estate Asian Tigers Equity
Fund\\(US)\\ Fund\\(US)\\ Fund\\(US)\\ Fund\\(US)\\ Fund\\(US)\\ Fund\\(US)\\ Fund\\(US)\\
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 3,468 $ 1,446 $ 2,556 $ 134 $ 449 $ 626 $ 477
129 178 -- 128 13 41 --
-- -- (296) -- -- (37) (17)
------------ ------------ ------------ ------------ ------------ ------------ ------------
3,597 1,624 2,260 262 462 630 460
------------ ------------ ------------ ------------ ------------ ------------ ------------
1,365 1,537 1,547 344 74 388 207
297 329 280 106 51 108 75
20 14 104 8 2 70 64
28 29 29 22 20 24 13
24 25 23 15 12 14 13
6 20 13 6 13 16 11
11 14 12 3 1 3 2
4 5 4 1 -- 1 1
7 9 3 2 -- 1 --
7 9 3 2 -- 1 --
-- -- -- -- 5 -- 2
11 11 10 6 -- 3 2
------------ ------------ ------------ ------------ ------------ ------------ ------------
1,780 2,002 2,028 515 178 629 390
-- -- -- -- (22) -- --
-- -- -- -- (43) -- --
------------ ------------ ------------ ------------ ------------ ------------ ------------
1,780 2,002 2,028 515 113 629 390
------------ ------------ ------------ ------------ ------------ ------------ ------------
1,817 (378) 232 (253) 349 1 70
------------ ------------ ------------ ------------ ------------ ------------ ------------
14,540 20,215 18,215 7,197 (135) 2,314 (877)
-- -- (434) -- -- (159) (238)
1,887 3,624 45,236 264 (500) 17,608 13,651
-- -- (39) -- -- 11 (23)
------------ ------------ ------------ ------------ ------------ ------------ ------------
16,427 23,839 62,978 7,461 (635) 19,774 12,513
------------ ------------ ------------ ------------ ------------ ------------ ------------
$ 18,244 $ 23,461 $ 63,210 $ 7,208 $ (286) $ 19,775 $ 12,583
============ ============ ============ ============ ============ ============ ============
</TABLE>
57
<PAGE>
Statement of Changes in Net Assets (000)
For the Year Ended December 31,
<TABLE>
<CAPTION>
Treasury
Money Market
Fund\\(US)\\
- -----------------------------------------------------------------------------------------------------------------------
1999 1998
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income..................................................................... $ 14,057 $ 11,042
Net realized gain (loss) from security and foreign currency transactions.................. 3 1
Net change in unrealized depreciation on investments and foreign currency transactions.... -- --
---------- ----------
Net increase (decrease) in net assets resulting from operations........................... 14,060 11,043
---------- ----------
Dividends distributed from:
Net investment income:
Common Share Class...................................................................... (13,516) (10,402)
Investor Share Class.................................................................... (541) (640)
Net realized gains:
Common Share Class...................................................................... -- --
Investor Share Class.................................................................... -- --
---------- ----------
Total dividends distributed............................................................ (14,057) (11,042)
---------- ----------
Capital share transactions:
Common Share Class:
Proceeds from shares issued............................................................. 747,343 849,198
Shares issued in lieu of cash distributions............................................. 443 328
Cost of shares repurchased.............................................................. (748,105) (710,064)
---------- ----------
Increase (decrease) in net assets derived from Common Share Class transactions.......... (319) 139,462
---------- ----------
Investor Share Class:
Proceeds from shares issued............................................................. 71,827 111,616
Shares issued in lieu of cash distributions............................................. 542 640
Cost of share repurchased............................................................... (78,298) (101,355)
---------- ----------
Increase (decrease) in net assets derived from Investor Share Class transactions........ (5,929) 10,901
---------- ----------
Increase (decrease) in net assets derived from capital share transactions............... (6,248) 150,363
---------- ----------
Net increase (decrease) in net assets..................................................... (6,245) 150,364
Net Assets:
Beginning of period....................................................................... 345,847 195,483
---------- ----------
End of period............................................................................. $ 339,602 $ 345,847
========== ==========
Capital share transactions:
Common Share Class:
Shares issued........................................................................... 747,343 849,198
Shares issued in lieu of cash distributions............................................. 443 328
Shares repurchased...................................................................... (748,105) (710,064)
---------- ----------
Total Common Share Class transactions.................................................. (319) 139,462
---------- ----------
Investor Share Class:
Shares issued........................................................................... 71,827 111,616
Shares issued in lieu of cash distributions............................................. 541 640
Shares repurchased...................................................................... (78,298) (101,355)
---------- ----------
Total Investor Share Class transactions................................................ (5,930) 10,901
---------- ----------
Increase (decrease) in capital shares.................................................. (6,249) 150,363
========== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
58
<PAGE>
DECEMBER 31, 1999
<TABLE>
<CAPTION>
Government Tax-Exempt
Money Market Money Market Money Market Fixed Income
Fund\\(US)\\ Fund\\(US)\\ Fund\\(US)\\ Fund\\(US)\\
------------------------------------------------------------------------------------------------------------------------------
1999 1998 1999 1998 1999 1998 1999 1998
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 24,285 $ 18,688 $ 62,522 $ 52,100 $ 8,991 $ 9,915 $ 9,452 $ 9,041
-- -- -- -- -- 6 (5,565) 2,974
-- -- -- -- -- -- (7,586) (798)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
24,285 18,688 62,522 52,100 8,991 9,921 (3,699) 11,217
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
(20,350) (15,907) (52,278) (44,888) (7,257) (8,560) (9,432) (9,325)
(3,935) (2,781) (10,244) (7,212) (1,734) (1,355) (21) (23)
-- -- -- -- -- -- (135) (2,080)
-- -- -- -- -- -- -- (5)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
(24,285) (18,688) (62,522) (52,100) (8,991) (9,915) (9,588) (11,433)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
901,384 961,904 2,396,115 2,199,812 535,359 794,878 59,511 52,981
3,837 2,734 2,500 652 186 139 2,161 2,615
(837,500) (823,101) (2,201,785) (1,996,903) (523,924) (772,450) (31,122) (24,774)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
67,721 141,537 196,830 203,561 11,621 22,567 30,550 30,822
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
387,926 294,386 927,874 994,823 271,145 270,523 37 22
3,931 2,781 10,241 7,204 1,737 1,345 20 41
(385,321) (216,601) (910,038) (783,735) (274,232) (207,365) (59) (56)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
6,536 80,566 28,077 218,292 (1,350) 64,503 (2) 7
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
74,257 222,103 224,907 421,853 10,271 87,070 30,548 30,829
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
74,257 222,103 224,907 421,853 10,271 87,076 17,261 30,613
486,294 264,191 1,160,871 739,018 340,314 253,238 172,189 141,576
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
$ 560,551 $ 486,294 $ 1,385,778 $ 1,160,871 $ 350,585 $ 340,314 $ 189,450 $ 172,189
============ ============ ============ ============ ============ ============ ============ ============
901,384 961,904 2,396,115 2,199,812 535,359 794,878 6,093 5,052
3,837 2,734 2,500 652 186 139 218 254
(837,500) (823,101) (2,201,785) (1,996,903) (523,924) (772,450) (3,138) (2,362)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
67,721 141,537 196,830 203,561 11,621 22,567 3,173 2,944
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
387,926 294,386 927,874 994,824 271,145 270,523 4 2
3,931 2,781 10,241 7,204 1,737 1,345 2 4
(385,321) (216,601) (910,038) (783,735) (274,231) (207,365) (6) (5)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
6,536 80,566 28,077 218,293 (1,349) 64,503 -- 1
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
74,257 222,103 224,907 421,854 10,272 87,070 3,173 2,945
============ ============ ============ ============ ============ ============ ============ ============
</TABLE>
59
<PAGE>
Statement of Changes in Net Assets (000)
For the Year Ended December 31,
<TABLE>
<CAPTION>
Tax-Exempt
Fixed Income
Fund\\(US)\\
- ------------------------------------------------------------------------------------------------------------------------------
1999 1998
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income (loss)........................................................... $ 1,441 $ 1,661
Net realized gain (loss) from security and foreign currency
transactions........................................................................ (255) 673
Net change in unrealized appreciation (depreciation) on investments
and foreign currency transactions................................................... (2,029) (216)
---------- ----------
Net increase (decrease) in net assets resulting from operations........................ (843) 2,118
---------- ----------
Dividends distributed from:
Net investment income:
Common Share Class.................................................................. (1,424) (1,648)
Investor Share Class................................................................ (17) (22)
Net realized gains:
Common Share Class.................................................................. -- --
Investor Share Class................................................................ -- --
In excess of net realized gains::
Common Share Class.................................................................. -- --
Investor Share Class................................................................ -- --
---------- ----------
Total dividends distributed...................................................... (1,441) (1,670)
---------- ----------
Capital share transactions:
Common Share Class:
Proceeds from shares issued......................................................... 3,738 4,836
Shares issued in lieu of cash distributions......................................... 9 22
Cost of shares repurchased.......................................................... (6,958) (10,580)
---------- ----------
Increase (decrease) in net assets derived from Common Share Class transactions...... (3,211) (5,722)
---------- ----------
Investor Share Class:
Proceeds from shares issued......................................................... 415 102
Shares issued in lieu of cash distributions......................................... 17 20
Cost of share repurchased........................................................... (588) (103)
---------- ----------
Increase (decrease) in net assets derived from Investor Share Class transactions.... (156) 19
---------- ----------
Increase (decrease) in net assets derived from capital share transactions........... (3,367) (5,703)
---------- ----------
Net increase (decrease) in net assets.................................................. (5,651) (5,255)
Net Assets:
Beginning of period.................................................................... 35,723 40,978
---------- ----------
End of period.......................................................................... $ 30,072 $ 35,723
========== ==========
Capital share transactions:
Common Share Class:
Shares issued....................................................................... 361 462
Shares issued in lieu of cash distributions......................................... 1 2
Shares repurchased.................................................................. (681) (1,010)
---------- ----------
Total Common Share Class transactions............................................ (319) (546)
---------- ----------
Investor Share Class:
Shares issued....................................................................... 41 9
Shares issued in lieu of cash distributions......................................... 2 2
Shares repurchased.................................................................. (58) (10)
---------- ----------
Total Investor Share Class transactions.................................................. (15) 1
---------- ----------
Increase (decrease) in capital shares.................................................... (334) (545)
========== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
60
<PAGE>
DECEMBER 31, 1999
<TABLE>
<CAPTION>
International
Fixed Income Balanced Value Growth
Fund\\(US)\\ Fund\\(US)\\ Fund\\(US)\\ Fund\\(US)\\
- ------------------------------------------------------------------------------------------------------------------------------------
1999 1998 1999 1998 1999 1998 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 458 $ 633 $ 1,653 $ 1,590 $ 1,817 $ 2,568 $ (378) $ 6
(183) (105) 7,090 4,860 14,540 33,525 20,215 13,906
(1,846) 1,909 (279) 1,217 1,887 (21,890) 3,624 29,876
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(1,571) 2,437 8,464 7,667 18,244 14,203 23,461 43,788
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(95) (295) (1,604) (1,535) (1,769) (2,568) -- (188)
-- (1) (50) (60) (18) (13) -- --
(42) (159) (5,663) (9,809) (9,954) (67,685) (19,047) (16,848)
-- -- (223) (481) (217) (512) (364) (320)
(100) -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(237) (455) (7,540) (11,885) (11,958) (70,778) (19,411) (17,356)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
948 2,932 16,813 17,520 25,561 30,539 55,118 42,338
3 5 6,126 10,179 4,611 20,219 12,272 10,985
(2,263) (3,005) (15,456) (16,384) (53,972) (44,296) (60,184) (27,254)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(1,312) (68) 7,483 11,315 (23,800) 6,462 7,206 26,069
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
4 -- 14 102 2,516 343 449 333
-- 1 265 538 237 529 362 320
(19) (22) (767) (967) (759) (773) (629) (1,154)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(15) (21) (488) (327) 1,994 99 182 (501)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(1,327) (89) 6,995 10,988 (21,806) 6,561 7,388 25,568
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(3,135) 1,893 7,919 6,770 (15,520) (50,014) 11,438 52,000
17,535 15,642 79,450 72,680 172,569 222,583 188,134 136,134
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
$ 14,400 $ 17,535 $ 87,369 $ 79,450 $ 157,049 $ 172,569 $ 199,572 $ 188,134
========== ========== ========== ========== ========== ========== ========== ==========
96 295 1,397 1,378 1,969 2,026 3,189 2,692
-- 1 515 889 358 1,455 720 697
(225) (296) (1,280) (1,245) (4,150) (2,974) (3,482) (1,696)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(129) -- 632 1,022 (1,823) 507 427 1,693
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
-- -- 1 8 184 24 26 21
-- -- 22 47 18 38 21 20
(2) (2) (63) (74) (59) (49) (36) (73)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(2) (2) (40) (19) 143 13 11 (32)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(131) (2) 592 1,003 (1,680) 520 438 1,661
========== ========== ========== ========== ========== ========== ========== ==========
</TABLE>
61
<PAGE>
Statement of Changes in Net Assets (000)
For the Year Ended December 31,
<TABLE>
<CAPTION>
International
Equity
Fund\\(US)\\
- ------------------------------------------------------------------------------------------------------------------------------------
1999 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income (loss).......................................................... $ 232 $ 24
Net realized gain (loss) from security and foreign currency
transactions.......................................................................... 17,781 (1,648)
Net change in unrealized appreciation (depreciation) on investments
and foreign currency transactions..................................................... 45,197 27,599
--------- ---------
Net increase (decrease) in net assets resulting from operations....................... 63,210 25,975
--------- ---------
Dividends distributed from:
Net investment income:
Common Share Class.................................................................. -- (696)
Investor Share Class................................................................ -- (1)
Net realized gains:
Common Share Class.................................................................. (13,324) (1,326)
Investor Share Class................................................................ (131) (10)
Paid in capital:
Common Share Class.................................................................. -- --
Investor Share Class................................................................ -- --
--------- ---------
Total dividends distributed....................................................... (13,455) (2,033)
--------- ---------
Capital share transactions:
Common Share Class:
Proceeds from shares issued......................................................... 209,564 48,964
Shares issued in lieu of cash distributions......................................... 4,404 608
Cost of shares repurchased.......................................................... (201,227) (15,857)
--------- ---------
Increase (decrease) in net assets derived from Common Share Class transactions...... 12,741 33,715
--------- ---------
Investor Share Class:
Proceeds from shares issued......................................................... 1,044 32
Shares issued in lieu of cash distributions......................................... 129 12
Cost of share repurchased........................................................... (264) (509)
--------- ---------
Increase (decrease) in net assets derived from Investor Share Class transactions.... 909 (465)
--------- ---------
Increase (decrease) in net assets derived from capital share transactions........... 13,650 33,250
--------- ---------
Net increase (decrease) in net assets................................................. 63,405 57,192
Net Assets:
Beginning of period................................................................... 143,877 86,685
--------- ---------
End of period......................................................................... $207,282 $143,877
========= =========
Capital share transactions:
Common Share Class:
Shares issued....................................................................... 10,284 2,880
Shares issued in lieu of cash distributions......................................... 192 36
Shares repurchased.................................................................. (9,837) (941)
--------- ---------
Total Common Share Class transactions............................................. 639 1,975
--------- ---------
Investor Share Class:
Shares issued....................................................................... 48 2
Shares issued in lieu of cash distributions......................................... 6 1
Shares repurchased.................................................................. (13) (30)
--------- ---------
Total Investor Share Class transactions........................................... 41 (27)
--------- ---------
Increase (decrease) in capital shares............................................. 680 1,948
========= =========
</TABLE>
The accompanying notes are an integral part of the financial statements.
62
<PAGE>
DECEMBER 31, 1999
<TABLE>
<CAPTION>
Latin America
Small Cap Real Estate Asian Tigers Equity
Fund\\(US)\\ Fund\\(US)\\ Fund\\(US)\\ Fund\\(US)\\
- ---------------------------------------------------------------------------------------------------------------------------
1999 1998 1999 1998 1999 1998 1999 1998
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (253) $ (413) $ 349 $ 228 $ 1 $ 270 $ 70 $ 398
7,197 (2,200) (135) (125) 2,155 (6,527) (1,115) (3,948)
264 (962) (500) (550) 17,619 3,255 13,628 (8,582)
- ---------- --------- --------- ----------- ----------- ---------- --------- ---------
7,208 (3,575) (286) (447) 19,775 (3,002) 12,583 (12,132)
- ---------- --------- --------- ----------- ----------- ---------- --------- ---------
-- -- (283) (191) -- (25) (19) (328)
-- -- (1) -- -- -- -- --
-- (837) -- -- -- -- -- (217)
-- (9) -- -- -- -- -- --
-- (3) (61) (37) -- -- -- --
-- -- -- -- -- -- -- --
- ---------- --------- --------- ----------- ----------- ---------- --------- ---------
-- (849) (345) (228) -- (25) (19) (545)
- ---------- --------- --------- ----------- ----------- ---------- --------- ---------
23,772 21,352 968 5,249 100,864 24,987 7,309 12,201
-- 89 344 227 -- 6 1 15
(20,860) (13,065) (184) (764) (97,734) (28,451) (7,183) (14,817)
- ---------- --------- --------- ----------- ----------- ---------- --------- ---------
2,912 8,376 1,128 4,712 3,130 (3,458) 127 (2,601)
- ---------- --------- --------- ----------- ----------- ---------- --------- ---------
10,715 2,408 12 21 1,950 201 -- --
-- 8 1 -- -- -- -- --
(11,135) (2,092) (1) -- (1,958) (334) -- --
- ---------- --------- --------- ----------- ----------- ---------- --------- ---------
(420) 324 12 21 (8) (133) -- --
- ---------- --------- --------- ----------- ----------- ---------- --------- ---------
2,492 8,700 1,140 4,733 3,122 (3,591) 127 (2,601)
- ---------- --------- --------- ----------- ----------- ---------- --------- ---------
9,700 4,276 509 4,058 22,897 (6,618) 12,691 (15,278)
46,773 42,497 7,043 2,985 28,380 34,998 17,993 33,271
- ---------- --------- --------- ----------- ----------- ---------- --------- ---------
$ 56,473 $ 46,773 $ 7,552 $ 7,043 $ 51,277 $ 28,380 $ 30,684 $ 17,993
========== ========= ========= =========== =========== ========== ========= =========
2,018 1,633 117 597 11,523 4,093 726 1,167
-- 9 43 26 -- 1 -- 2
(1,827) (1,021) (23) (85) (11,042) (4,465) (746) (1,485)
- ---------- --------- --------- ----------- ----------- ---------- --------- ---------
191 621 137 538 481 (371) (20) (316)
- ---------- --------- --------- ----------- ----------- ---------- --------- ---------
919 214 1 2 220 31 -- --
-- 1 -- -- -- -- -- --
(951) (184) -- -- (221) (48) -- --
- ---------- --------- --------- ----------- ----------- ---------- --------- ---------
(32) 31 1 2 (1) (17) -- --
- ---------- --------- --------- ----------- ----------- ---------- --------- ---------
159 652 138 540 480 (388) (20) (316)
========== ========= ========= =========== =========== ========== ========= =========
</TABLE>
63
<PAGE>
Financial Highlights
For a Share Outstanding for the Years Ended December 31,
<TABLE>
<CAPTION>
Net Asset Realized Dividends Distributions
Value Net and Unrealized from Net from
Beginning Investment Gains Investment Capital
of Period Income on Securities Income Gains
- -----------------------------------------------------------------------------------------------------------------------------
Treasury Money Market Fund\\(US)\\
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Common Share Class
1999 $1.00 $0.05 $0.00 $(0.05) $0.00
1998 1.00 0.05 0.00 (0.05) 0.00
1997 1.00 0.05 0.00 (0.05) 0.00
1996 1.00 0.05 0.00 (0.05) 0.00
1995 1.00 0.05 0.00 (0.05) 0.00
Investor Share Class
1999 $1.00 $0.04 $0.00 $(0.04) $0.00
1998 1.00 0.05 0.00 (0.05) 0.00
1997 1.00 0.05 0.00 (0.05) 0.00
1996 1.00 0.04 0.00 (0.04) 0.00
1995 1.00 0.05 0.00 (0.05) 0.00
- -----------------------------------------------------------------------------------------------------------------------------
Government Money Market Fund\\(US)\\
- -----------------------------------------------------------------------------------------------------------------------------
Common Share Class
1999 $1.00 $0.05 $0.00 $(0.05) $0.00
1998 1.00 0.05 0.00 (0.05) 0.00
1997 1.00 0.05 0.00 (0.05) 0.00
1996 1.00 0.05 0.00 (0.05) 0.00
1995 1.00 0.05 0.00 (0.05) 0.00
Investor Share Class
1999 $1.00 $0.04 $0.00 $(0.04) $0.00
1998 1.00 0.05 0.00 (0.05) 0.00
1997 1.00 0.05 0.00 (0.05) 0.00
1996 1.00 0.05 0.00 (0.05) 0.00
1995 1.00 0.05 0.00 (0.05) 0.00
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
64
<PAGE>
DECEMBER 31, 1999
<TABLE>
<CAPTION>
Ratio of Net
Investment
Ratio of Net Ratio of Expenses Income
Ratio of Investment to Average to Average
Net Asset Net Assets Expenses Income Net Assets Net Assets
Value End Total End of to Average to Average (Excluding (Excluding
of Period Return Period (000) Net Assets Net Assets Waivers) Waivers)
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$1.00 4.63% $327,906 0.36% 4.53% 0.59% 4.30%
1.00 4.90 328,222 0.37 4.79 0.59 4.58
1.00 4.97 188,761 0.33 4.86 0.57 4.62
1.00 4.80 156,455 0.44 4.70 0.59 4.55
1.00 5.28 110,475 0.44 5.16 0.59 5.01
$1.00 4.37% $ 11,696 0.61% 4.28% 1.09% 3.80%
1.00 4.64 17,625 0.62 4.54 1.09 4.08
1.00 4.70 6,722 0.58 4.60 0.88 4.30
1.00 4.54 10,910 0.69 4.45 0.84 4.30
1.00 5.02 7,931 0.69 4.89 0.84 4.74
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
$1.00 4.87% $464,520 0.33% 4.78% 0.41% 4.70%
1.00 5.24 396,797 0.35 5.12 0.42 5.04
1.00 5.33 255,259 0.32 5.21 0.40 5.13
1.00 5.08 256,392 0.44 4.96 0.44 4.96
1.00 5.59 207,615 0.42 5.45 0.42 5.45
$1.00 4.53% $ 96,031 0.65% 4.46% 0.91% 4.20%
1.00 4.91 89,497 0.67 4.80 0.92 4.54
1.00 5.05 8,932 0.59 4.95 0.72 4.82
1.00 4.82 5,093 0.69 4.71 0.69 4.71
1.00 5.33 3,002 0.67 5.18 0.67 5.18
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
65
<PAGE>
Financial Highlights
For a Share Outstanding for the Years Ended December 31,
<TABLE>
<CAPTION>
Net Asset Realized Dividends Distributions
Value Net and Unrealized from Net from
Beginning Investment Gains on Investment Capital
of Period Income Securities Income Gains
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Money Market Fund\\(US)\\
- ----------------------------------------------------------------------------------------------------------------------------------
Common Share Class
1999 $1.00 $0.05 $0.00 $(0.05) $0.00
1998 1.00 0.05 0.00 (0.05) 0.00
1997 1.00 0.05 0.00 (0.05) 0.00
1996 1.00 0.05 0.00 (0.05) 0.00
1995 1.00 0.06 0.00 (0.06) 0.00
Investor Share Class
1999 $1.00 $0.05 $0.00 $(0.05) $0.00
1998 1.00 0.05 0.00 (0.05) 0.00
1997 1.00 0.05 0.00 (0.05) 0.00
1996 1.00 0.05 0.00 (0.05) 0.00
1995 1.00 0.05 0.00 (0.05) 0.00
- ----------------------------------------------------------------------------------------------------------------------------------
Tax-Exempt Money Market Fund\\(US)\\
- ----------------------------------------------------------------------------------------------------------------------------------
Common Share Class
1999 $1.00 $0.03 $0.00 $(0.03) $0.00
1998 1.00 0.03 0.00 (0.03) 0.00
1997 1.00 0.03 0.00 (0.03) 0.00
1996 1.00 0.03 0.00 (0.03) 0.00
1995 1.00 0.03 0.00 (0.03) 0.00
Investor Share Class
1999 $1.00 $0.03 $0.00 $(0.03) $0.00
1998 1.00 0.03 0.00 (0.03) 0.00
1997 1.00 0.03 0.00 (0.03) 0.00
1996 1.00 0.03 0.00 (0.03) 0.00
1995 1.00 0.03 0.00 (0.03) 0.00
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
66
<PAGE>
DECEMBER 31, 1999
<TABLE>
<CAPTION>
Ratio of Net
Investment
Ratio of Net Ratio of Expenses Income
Ratio of Investment to Average to Average
Net Asset Net Assets Expenses Income Net Assets Net Assets
Value End Total End of to Average to Average (Excluding (Excluding
of Period Return Period (000) Net Assets Net Assets Waivers) Waivers)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
$1.00 4.98% $1,138,123 0.32% 4.88% 0.55% 4.65%
1.00 5.33 941,295 0.33 5.21 0.56 4.98
1.00 5.41 737,736 0.32 5.29 0.56 5.05
1.00 5.13 598,715 0.43 5.02 0.58 4.87
1.00 5.64 475,688 0.41 5.50 0.56 5.35
$1.00 4.60% $ 247,655 0.68% 4.52% 1.05% 4.15%
1.00 4.97 219,576 0.69 4.85 1.06 4.48
1.00 5.12 1,282 0.59 5.00 0.85 4.74
1.00 4.87 1,466 0.68 4.77 0.83 4.62
1.00 5.38 1,358 0.66 5.22 0.81 5.07
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
$1.00 3.01% $ 284,455 0.35% 2.96% 0.58% 2.73%
1.00 3.21 272,834 0.35 3.17 0.56 2.95
1.00 3.36 250,260 0.33 3.32 0.57 3.08
1.00 3.14 187,629 0.40 3.10 0.56 2.94
1.00 3.49 167,945 0.41 3.44 0.56 3.29
$1.00 2.75% $ 66,130 0.60% 2.71% 1.08% 2.23%
1.00 2.96 67,480 0.60 2.92 1.06 2.45
1.00 3.10 2,978 0.58 3.07 0.89 2.76
1.00 2.88 2,807 0.65 2.85 0.81 2.69
1.00 3.24 3,244 0.66 3.19 0.81 3.04
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
67
<PAGE>
Financial Highlights
For a Share Outstanding for the Years Ended December 31,
<TABLE>
<CAPTION>
Net Asset Realized Dividends Distributions
Value Net and Unrealized from Net from
Beginning Investment Gains (Losses) on Investment Capital
of Period Income Securities Income Gains
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Fixed Income Fund\\(US)\\
- ----------------------------------------------------------------------------------------------------------------------------------
Common Share Class
1999 $10.36 $0.57 $(0.78) $(0.57) $(0.01)
1998 10.35 0.57 0.16 (0.59) (0.13)
1997 10.06 0.60 0.30 (0.60) (0.01)
1996 10.32 0.59 (0.26) (0.59) 0.00
1995 9.30 0.59 1.02 (0.59) 0.00
Investor Share Class
1999 $10.41 $0.53 $(0.79) $(0.52) $(0.01)
1998 10.38 0.53 0.17 (0.54) (0.13)
1997 10.09 0.59 0.29 (0.58) (0.01)
1996 10.35 0.57 (0.26) (0.57) 0.00
1995 9.32 0.55 1.04 (0.56) 0.00
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
68
<PAGE>
DECEMBER 31, 1999
<TABLE>
<CAPTION>
Ratio of Net
Investment
Ratio of Net Ratio of Expenses Income
Ratio of Investment to Average to Average
Net Asset Net Assets Expenses Income Net Assets Net Assets Portfolio
Value End Total End of to Average to Average (Excluding (Excluding Turnover
of Period Return Period (000) Net Assets Net Assets Waivers) Waivers) Rate
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 9.57 (2.11)% $189,048 0.69% 5.70% 0.84% 5.55% 229%
10.36 7.13 171,753 0.72 5.43 0.86 5.28 157
10.35 9.22 141,148 0.71 5.95 0.81 5.85 233
10.06 3.42 123,930 0.73 5.92 0.83 5.82 194
10.32 17.75 125,563 0.74 5.97 0.84 5.87 59
$ 9.62 (2.58)% $ 402 1.19% 5.20% 1.34% 5.05% 229%
10.41 6.81 436 1.18 4.97 1.32 4.82 157
10.38 8.92 428 0.96 5.71 1.12 5.55 233
10.09 3.24 459 0.98 5.65 1.08 5.55 194
10.35 17.40 646 0.99 5.72 1.09 5.62 59
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
69
<PAGE>
Financial Highlights
For a Share Outstanding for the Years Ended December 31,
<TABLE>
<CAPTION>
Net Asset Realized Dividends Distributions
Value Net and Unrealized from Net from
Beginning Investment Gains (Losses) Investment Capital
of Period Income on Securities Income Gains
- ------------------------------------------------------------------------------------------------------------------------------------
Tax-Exempt Fixed Income Fund\\(US)\\
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Common Share Class
1999 $10.53 $0.44 $(0.69) $(0.44) $0.00
1998 10.41 0.47 0.12 (0.47) 0.00
1997 9.99 0.49 0.42 (0.49) 0.00
1996 10.20 0.50 (0.21) (0.50) 0.00
1995 9.26 0.48 0.94 (0.48) 0.00
Investor Share Class
1999 $10.51 $0.39 $(0.70) $(0.39) $0.00
1998 10.39 0.42 0.12 (0.42) 0.00
1997 9.97 0.47 0.41 (0.46) 0.00
1996 10.18 0.43 (0.17) (0.47) 0.00
1995 9.24 0.43 0.97 (0.46) 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
International Fixed Income Fund\\(US)\\
- ------------------------------------------------------------------------------------------------------------------------------------
Common Share Class
1999 $10.82 $0.30 $(1.30) $(0.06) $(0.10)
1998 9.64 0.39 1.07 (0.18) (0.10)
1997 10.24 0.43 (1.03) 0.00 0.00
1996 10.58 0.48 (0.18) (0.64) 0.00
1995 9.54 0.62 1.38 (0.96) 0.00
Investor Share Class
1999 $10.80 $0.24 $(1.28) $ 0.00 $(0.10)
1998 9.60 0.38 1.05 (0.13) (0.10)
1997 10.23 0.49 (1.12) 0.00 0.00
1996 10.56 0.54 (0.27) (0.60) 0.00
1995 9.53 0.52 1.45 (0.94) 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
70
<PAGE>
DECEMBER 31, 1999
<TABLE>
<CAPTION>
Ratio of Net
Investment
Ratio of Net Ratio of Expenses Income (Loss)
Ratio of Investment to Average to Average
Net Asset Net Assets Expenses Income Net Assets Net Assets Portfolio
Value End Total End of to Average to Average (Excluding (Excluding Turnover
of Period Return Period (000) Net Assets Net Assets Waivers) Waivers) Rate
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 9.84 (2.45)% $ 29,694 0.89% 4.27% 1.04% 4.12% 80%
10.53 5.79 35,161 0.83 4.44 0.97 4.30 41
10.41 9.36 40,441 0.73 4.84 0.84 4.73 54
9.99 2.96 39,756 0.73 4.95 0.85 4.83 98
10.20 15.67 50,079 0.75 4.84 0.87 4.72 129
$ 9.81 (3.03)% $ 378 1.39% 3.77% 1.54% 3.62% 80%
10.51 5.31 562 1.29 3.98 1.43 3.84 41
10.39 9.11 537 0.98 4.59 1.14 4.43 54
9.97 2.70 680 0.98 4.70 1.10 4.58 98
10.18 15.43 1,131 1.00 4.59 1.12 4.47 129
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
$ 9.66 (9.26)% $ 14,367 1.50% 2.90% 1.55% 2.85% 40%
10.82 15.15 17,482 1.38 3.62 1.42 3.57 79
9.64 (5.86) 15,574 1.22 4.08 1.22 4.08 52
10.24 2.82 17,561 1.11 4.66 1.11 4.66 85
10.58 20.99 17,433 1.10 5.86 1.16 5.80 105
$ 9.66 (9.66)% $ 33 2.00% 2.40% 2.05% 2.35% 40%
10.80 14.84 53 1.83 3.17 1.87 3.12 79
9.60 (6.16) 68 1.47 3.83 1.51 3.78 52
10.23 2.62 112 1.36 4.43 1.36 4.43 85
10.56 20.68 125 1.35 5.57 1.41 5.51 105
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
71
<PAGE>
Financial Highlights
For a Share Outstanding for the Years Ended December 31,
<TABLE>
<CAPTION>
Net Asset Realized Dividends Distributions
Value Net and Unrealized from Net from
Beginning Investment Gains Investment Capital
of Period Income on Securities Income Gains
- ------------------------------------------------------------------------------------------------------------------------------------
Balanced Fund\\(US)\\
- ------------------------------------------------------------------------------------------------------------------------------------
Common Share Class
<S> <C> <C> <C> <C> <C>
1999 $11.83 $0.24 $0.98 $(0.24) $(0.85)
1998 12.73 0.27 0.82 (0.27) (1.72)
1997 10.98 0.32 2.06 (0.32) (0.31)
1996 10.75 0.35 1.02 (0.35) (0.79)
1995 9.53 0.39 1.65 (0.39) (0.43)
Investor Share Class
1999 $11.86 $0.18 $0.98 $(0.18) $(0.85)
1998 12.73 0.21 0.85 (0.21) (1.72)
1997 10.98 0.30 2.06 (0.30) (0.31)
1996 10.75 0.30 1.04 (0.32) (0.79)
1995 9.53 0.34 1.67 (0.36) (0.43)
</TABLE>
The accompanying notes are an integral part of the financial statements.
72
<PAGE>
DECEMBER 31, 1999
<TABLE>
<CAPTION>
Ratio of Net
Investment
Ratio of Net Ratio of Expenses Income
Ratio of Investment to Average to Average
Net Asset Net Assets Expenses Income Net Assets Net Assets Portfolio
Value End Total End of to Average to Average (Excluding (Excluding Turnover
of Period Return Period (000) Net Assets Net Assets Waivers) Waivers) Rate
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$11.96 10.55% $84,151 1.00% 1.96% 1.00% 1.96% 112%
11.83 9.97 75,793 1.03 2.06 1.03 2.06 84
12.73 22.10 68,523 0.93 2.68 0.93 2.68 111
10.98 13.15 54,546 0.94 3.14 0.94 3.14 104
10.75 21.85 49,899 0.92 3.74 0.92 3.74 85
$11.99 9.97% $ 3,218 1.50% 1.46% 1.50% 1.46% 112%
11.86 9.72 3,657 1.49 1.60 1.49 1.60 84
12.73 21.80 4,157 1.18 2.43 1.24 2.37 111
10.98 12.86 3,710 1.19 2.89 1.19 2.89 104
10.75 21.52 3,949 1.22 3.36 1.22 3.36 85
</TABLE>
The accompanying notes are an integral part of the financial statements.
73
<PAGE>
Financial Highlights
For a Share Outstanding for the Years Ended December 31,
<TABLE>
<CAPTION>
Net Asset Realized Dividends Distributions
Value Net and Unrealized from Net from
Beginning Investment Gains Investment Capital
of Period Income (Loss) on Securities Income Gains
- ------------------------------------------------------------------------------------------------------------------------------------
Value Fund\\(US)\\
- ------------------------------------------------------------------------------------------------------------------------------------
Common Share Class
<S> <C> <C> <C> <C> <C>
1999 $12.33 $ 0.14 $1.23 $(0.14) $(0.81)
1998 16.51 0.19 0.86 (0.19) (5.04)
1997 13.24 0.24 3.75 (0.24) (0.48)
1996 12.26 0.29 2.18 (0.29) (1.20)
1995 9.79 0.34 2.74 (0.35) (0.26)
Investor Share Class
1999 $12.32 $ 0.07 $1.24 $(0.08) $(0.81)
1998 16.54 0.12 0.82 (0.12) (5.04)
1997 13.26 0.20 3.76 (0.20) (0.48)
1996 12.28 0.25 2.18 (0.25) (1.20)
1995 9.80 0.32 2.74 (0.32) (0.26)
- ------------------------------------------------------------------------------------------------------------------------------------
Growth Fund\\(US)\\
- ------------------------------------------------------------------------------------------------------------------------------------
COMMON SHARE CLASS
1999 $17.10 $(0.03) $2.16 $ 0.00 $(1.79)
1998 14.57 0.00 4.20 (0.02) (1.65)
1997 13.06 0.12 2.97 (0.12) (1.46)
1996 11.61 0.17 2.31 (0.17) (0.86)
1995 9.73 0.16 2.88 (0.16) (1.00)
Investor Share Class
1999 $17.06 $(0.11) $2.14 $ 0.00 $(1.79)
1998 14.60 (0.07) 4.18 0.00 (1.65)
1997 13.09 0.08 2.97 (0.08) (1.46)
1996 11.62 0.14 2.33 (0.14) (0.86)
1995 9.74 0.12 2.89 (0.13) (1.00)
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
74
<PAGE>
DECEMBER 31, 1999
<TABLE>
<CAPTION>
Ratio of Net
Investment
Ratio of Net Ratio of Expenses Income (Loss)
Ratio of Investment to Average to Average
Net Asset Net Assets Expenses Income (Loss) Net Assets Net Assets Portfolio
Value End Total End of to Average to Average (Excluding (Excluding Turnover
of Period Return Period (000) Net Assets Net Assets Waivers) Waivers) Rate
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$12.75 11.14% $ 153,551 1.03% 1.07% 1.03% 1.07% 94%
12.33 5.47 170,945 1.05 1.23 1.05 1.23 55
16.51 30.49 220,618 1.01 1.57 1.01 1.57 79
13.24 20.43 164,710 1.03 2.19 1.03 2.19 58
12.26 32.02 131,243 1.05 3.07 1.05 3.07 37
$12.74 10.67% $ 3,498 1.53% 0.57% 1.53% 0.57% 94%
12.32 4.66 1,624 1.50 0.78 1.50 0.78 55
16.54 30.20 1,965 1.26 1.32 1.32 1.26 79
13.26 20.09 1,672 1.28 1.94 1.28 1.94 58
12.28 31.72 1,497 1.33 2.79 1.33 2.79 37
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
$17.44 12.82% $ 195,804 1.03% (0.19)% 1.03% (0.19)% 69%
17.10 30.23 184,601 1.06 0.01 1.06 0.01 65
14.57 23.98 132,649 1.02 0.79 1.02 0.79 62
13.06 21.69 95,215 1.02 1.36 1.02 1.36 58
11.61 31.60 78,216 1.02 1.37 1.02 1.37 71
$17.30 12.26% $ 3,768 1.53% (0.69)% 1.53% (0.69)% 69%
17.06 29.52 3,533 1.52 (0.45) 1.52 (0.45) 65
14.60 23.65 3,485 1.27 0.54 1.33 0.48 62
13.09 21.41 3,031 1.27 1.11 1.27 1.11 58
11.62 31.29 2,681 1.31 1.10 1.31 1.10 71
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
75
<PAGE>
Financial Highlights
For a Share Outstanding for the Years Ended December 31,
<TABLE>
<CAPTION>
Net Asset Realized Dividends Distributions
Value Net and Unrealized from Net from Contribution
Beginning Investment Gains (Losses) Investment Capital (Return)
of Period Income (Loss) on Securities Income Gains of Capital
- -----------------------------------------------------------------------------------------------------------------------------------
International Equity Fund(US)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
COMMON SHARE CLASS
1999 $18.97 $ 0.04 $ 7.75 $ 0.00 $(1.68) $ 0.00
1998 15.38 0.01 3.85 (0.09) (0.18) 0.00
1997 15.83 0.04 0.68 (0.08) (1.09) 0.00
1996 14.56 0.06 1.37 (0.04) (0.15) 0.03
1995 13.00 0.07 1.75 (0.06) (0.20) 0.00
INVESTOR SHARE CLASS
1999 $18.91 $ 0.00 $ 7.64 $ 0.00 $(1.68) $ 0.00
1998 15.34 (0.08) 3.86 (0.03) (0.18) 0.00
1997 15.79 0.01 0.66 (0.03) (1.09) 0.00
1996 14.52 0.04 1.35 0.00 (0.15) 0.03
1995 12.96 0.05 1.73 (0.02) (0.20) 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
Small Cap Fund(US)
- ------------------------------------------------------------------------------------------------------------------------------------
COMMON SHARE CLASS
1999 $12.22 $(0.06) $ 2.00 $ 0.00 $ 0.00 $ 0.00
1998 13.38 (0.11) (0.82) 0.00 (0.23) 0.00 (A)
1997 13.03 (0.09) 2.07 0.00 (1.63) 0.00
1996 12.46 (0.03) 2.38 0.00 (1.78) 0.00
1995 9.57 0.02 3.05 (0.02) (0.16) 0.00
INVESTOR SHARE CLASS
1999 $12.04 $(0.17) $ 2.09 $ 0.00 $ 0.00 $ 0.00
1998 13.29 (0.10) (0.92) 0.00 (0.23) 0.00 (A)
1997 13.00 (0.13) 2.05 0.00 (1.63) 0.00
1996 12.46 (0.07) 2.39 0.00 (1.78) 0.00
1995 9.58 (0.01) 3.05 0.00 (0.16) 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(A) Per share was less than $0.005.
The accompanying notes are an integral part of the financial statements.
76
<PAGE>
DECEMBER 31, 1999
<TABLE>
<CAPTION>
Ratio of Net
Investment
Ratio of Net Ratio of Expenses Income (Loss)
Ratio of Investment to Average to Average
Net Asset Net Assets Expenses Income (Loss) Net Assets Net Assets Portfolio
Value End Total End of to Average to Average (Excluding (Excluding Turnover
of Period Return Period (000) Net Assets Net Assets Waivers) Waivers) Rate
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$25.08 41.86% $204,922 1.31% 0.15% 1.31% 0.15% 31%
18.97 25.43 142,862 1.38 0.02 1.38 0.02 31
15.38 4.56 85,440 1.35 0.23 1.35 0.23 17
15.83 10.09 (B) 96,442 1.36 0.44 1.36 0.44 9
14.56 14.03 77,519 1.38 0.70 1.38 0.70 11
$24.87 41.20% $ 2,360 1.81% (0.35)% 1.81% (0.35)% 31%
18.91 24.87 1,015 1.83 (0.43) 1.83 (0.43) 31
15.34 4.28 1,245 1.60 (0.05) 1.65 (0.10) 17
15.79 9.85 (B) 1,608 1.61 0.20 1.61 0.20 9
14.52 13.79 1,686 1.68 0.42 1.68 0.42 11
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
$14.16 15.88% $ 55,901 1.19% (0.58)% 1.19% (0.58)% 167%
12.22 (6.52) 45,899 1.17 (0.84) 1.17 (0.84) 151
13.38 15.89 41,945 1.04 (0.72) 1.04 (0.72) 170
13.03 19.42 36,375 1.05 (0.27) 1.05 (0.27) 158
12.46 32.13 23,844 1.10 0.18 1.10 0.18 142
$13.96 15.95% $ 572 1.69% (1.08)% 1.69% (1.08)% 167%
12.04 (7.25) 874 1.63 (1.30) 1.63 (1.30) 151
13.29 15.45 552 1.29 (0.97) 1.35 (1.03) 170
13.00 19.18 579 1.30 (0.52) 1.30 (0.52) 158
12.46 31.73 553 1.39 (0.08) 1.39 (0.08) 142
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(B) The total return for the period ended December 31, 1996 includes the effect
of a capital contribution from an affiliate of the Advisor.
Without the capital contribution, the total return for the Common Class and
the Investor Class would have been 9.87% and 9.64%, respectively.
The accompanying notes are an integral part of the financial statements.
77
<PAGE>
Financial Highlights
For a Share Outstanding for the Years Ended December 31,
<TABLE>
<CAPTION>
Net Asset Realized Dividends Distributions
Value Net and Unrealized from Net from Contribution
Beginning Investment Gains (Losses) Investment Capital (Return)
of Period Income (Loss) on Securities Income Gains of Capital
- ------------------------------------------------------------------------------------------------------------------------------------
Real Estate Fund\\(US)\\
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Common Share Class
1999 $ 8.37 $ 0.38 $ (0.65) $ (0.31) $ 0.00 $ (0.07)
1998 9.95 0.37 (1.58) (0.31) 0.00 (0.06)
1997 (1) 10.00 0.00 (0.05) 0.00 0.00 0.00
Investor Share Class
1999 $ 10.63 $ 0.42 $ (0.83) $ (0.33) $ 0.00 $ 0.00
1998 (2) 10.00 0.08 0.66 (0.11) 0.00 0.00 (A)
- ------------------------------------------------------------------------------------------------------------------------------------
Asian Tigers Fund\\(US)\\
- ------------------------------------------------------------------------------------------------------------------------------------
Common Share Class
1999 $ 6.73 $ 0.00 (A) $ 4.19 $ 0.00 $ 0.00 $ 0.00
1998 7.60 0.07 (0.93) (0.01) 0.00 0.00
1997 11.91 0.04 (4.32) (0.02) (0.01) 0.00
1996 10.45 0.02 1.48 (0.04) (0.02) 0.02
1995 9.47 0.12 0.98 (0.12) 0.00 0.00
Investor Share Class
1999 $ 6.67 $ (0.05) $ 4.17 $ 0.00 $ 0.00 $ 0.00
1998 7.57 0.04 (0.94) 0.00 0.00 0.00
1997 11.89 0.05 (4.36) 0.00 (0.01) 0.00
1996 10.44 (0.02) 1.48 (0.01) (0.02) 0.02
1995 9.47 0.11 0.95 (0.09) 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Latin America Equity Fund\\(US)\\
- ------------------------------------------------------------------------------------------------------------------------------------
Common Share Class
1999 $ 8.12 $ 0.03 $ 5.83 $ (0.01) $ 0.00 $ 0.00
1998 13.13 0.18 (4.96) (0.15) (0.08) 0.00
1997 10.24 0.05 3.54 (0.03) (0.67) 0.00
1996 (3) 10.00 (0.02) 0.26 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Commenced operations on December 31, 1997. All ratios except for the total
return for the period have been annualized.
(2) Commenced operations on October 8, 1998. All ratios except for the total
return for the period have been annualized.
(3) Commenced operations on July 1, 1996. All ratios except for the total
return for the period have been annualized.
(A) Per share was less than $0.005.
The accompanying notes are an integral part of the financial statements.
78
<PAGE>
DECEMBER 31, 1999
<TABLE>
<CAPTION>
Ratio of Net
Investment
Ratio of Net Ratio of Expenses Income (Loss)
Ratio of Investment to Average to Average
Net Asset Net Assets Expenses Income (Loss) Net Assets Net Assets Portfolio
Value End Total End of to Average to Average (Excluding (Excluding Turnover
of Period Return Period (000) Net Assets Net Assets Waivers) Waivers) Rate
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 7.72 (3.33)% $ 7,522 1.53% 4.72% 2.42% 3.83% 11%
8.37 (12.35) 7,022 1.41 4.68 1.78 4.31 13
9.95 0.00 2,985 1.31 (1.31) 1.61 (1.61) 0*
$ 9.89 (3.93)% $ 30 2.03% 4.22% 2.92% 3.33% 11%
10.63 7.35 21 1.91 4.18 2.28 3.81 13*
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
$10.92 62.26% $50,994 1.62% 0.01% 1.62% 0.01% 83%
6.73 (11.37) 28,202 1.67 0.91 1.67 0.91 57
7.60 (35.98) 34,664 1.60 0.50 1.60 0.50 42
11.91 14.55 (B) 33,602 1.54 0.23 1.54 0.23 24
10.45 11.61 23,145 1.52 1.38 1.60 1.30 28
$10.79 61.77% $ 283 2.12% (0.50)% 2.12% (0.50)% 83%
6.67 (11.89) 178 2.11 0.47 2.11 0.47 57
7.57 (36.25) 334 1.85 0.30 1.89 0.26 42
11.89 14.21 (B) 840 1.79 (0.15) 1.79 (0.15) 24
10.44 11.18 733 1.81 1.05 1.88 0.98 28
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
$13.97 72.41% $30,684 1.88% 0.34% 1.88% 0.34% 145%
8.12 (36.33) 17,993 1.75 1.38 1.75 1.38 92
13.13 35.50 33,271 1.50 0.56 1.50 0.56 45
10.24 2.40 11,490 2.09 (0.55) 2.09 (0.55) 10*
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Not Annualized
(B) The total return for the period ended December 31, 1996 includes the effect
of a capital contribution from an affiliate of the Advisor.
Without the capital contribution, the total return for the Common Class and
the Investor Class would have been 14.36% and 14.02%, respectively.
The accompanying notes are an integral part of the financial statements.
79
<PAGE>
Notes to Financial Statements
1. Organization
ABN AMRO Funds (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 (the "1940 Act"), as an
open-end management investment company with 19 funds: Treasury Money Market
Fund\\(US)\\, Government Money Market Fund\\(US)\\, Money Market Fund\\(US)\\,
Tax-Exempt Money Market Fund\\(US)\\ (collectively the "Money Market Funds"),
Fixed Income Fund\\(US)\\, Tax-Exempt Fixed Income Fund\\(US)\\, International
Fixed Income Fund\\(US)\\, Balanced Fund\\(US)\\, (collectively the "Fixed
Income Funds"), Value Fund\\(US)\\, Growth Fund\\(US)\\, International Equity
Fund\\(US)\\, Small Cap Fund\\(US)\\ (formerly the Small Cap Growth
Fund\\(US)\\), Real Estate Fund \\(US)\\, TransEurope Fund\\(US)\\, Asian Tigers
Fund\\(US)\\ and Latin America Equity Fund\\(US)\\ (collectively the "Equity
Funds") (all funds collectively the "Funds"). The Trust also consists of
Institutional Prime Money Market Fund\\(US)\\, Institutional Treasury Money
Market Fund\\(US)\\ and Institutional Government Money Market Fund\\(US)\\
(collectively the "Institutional Money Market Funds").
TransEurope Fund\\(US)\\, Institutional Treasury Money Market Fund\\(US)\\
and Institutional Government Money Market Fund\\(US)\\ have not yet commenced
operations as of December 31, 1999. The prospectuses describe each Fund's
investment objectives, policies and strategies. The Institutional Prime Money
Market Fund's Institutional Shares are offered through a separate prospectus and
has a separate shareholder report which includes financial statements and
financial highlights.
The assets of each Fund are segregated, and a shareholder's interest is
limited to the Fund in which shares are held. The Money Market Funds, the Fixed
Income Funds and the Equity Funds offer two classes of shares: Common Share
Class (previously the Trust Class) and Investor Share Class (available through
banks, various brokerage firms and other financial intermediaries). The
Institutional Money Market Funds of the Trust offer two classes of shares:
Institutional Shares and Institutional Service Shares.
2. Significant Accounting Policies
The following is a summary of the significant accounting policies followed by
the Funds.
Security Valuation - Investments in equity securities that are traded on a
national securities exchange (or reported on NASDAQ national market system) are
stated at the last quoted sales price, for the principal exchange, 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 for the principal exchange 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 which approximates market value.
Foreign securities are valued based upon quotations as of the time of the net
asset value calculation. The value of securities for which no quotations are
readily available (including restricted securities that are not deemed to be
liquid) is determined in good faith at fair value under the supervision of the
Board of Trustees.
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 accreted or 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 Subchapter M 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 a trade date basis. 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.
Securities purchased or sold on a when-issued or delayed-delivery basis may
be settled a month or more after the trade date; interest income is not accrued
until settlement date. Each Fund instructs the custodian to segregate assets
with a current value at least equal to the amount of its when-issued purchase
commitments.
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 by 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 or
class of shares is calculated each business day. In general, it is computed by
dividing the assets of each Fund or class of shares less its liabilities, by the
number of outstanding shares of the Fund or class.
Foreign Currency Translations - The books and records for the International
Fixed Income Fund\\(US)\\, Asian Tigers Fund\\(US)\\, International Equity
Fund\\(US)\\ and Latin America Equity
80
<PAGE>
DECEMBER 31, 1999
Fund\\(US)\\ (the "International Funds") 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 relevant rates of exchange prevailing on the respective dates of
such transactions.
For foreign equity securities, the International Funds do not isolate the
portion of gains and losses on investments in equity securities that is due to
changes in the foreign exchange rates from that which is due to changes in
market prices of equity securities.
The International Funds isolate the effect of fluctuations in foreign
currency rates when determining the gain or loss upon sale or maturity of
foreign currency denominated debt obligations for federal income tax purposes.
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 International Funds may enter 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. Gains or losses on the
purchase or sale of forward foreign currency contracts having the same
settlement date and broker are recognized on the date of offset, otherwise gains
or losses are recognized on the settlement date.
The use of forward foreign currency contracts does not eliminate the
fluctuations in the underlying prices of a Fund's securities, but it does
establish a rate of exchange that can be achieved in the future. Although
forward foreign currency contracts limit the risk of loss due to a decline in
the value of the hedged currency, they also limit any potential gain that might
result should the value of the currency increase. In addition, each Fund could
be exposed to risks if the counter-parties to the contracts are unable to meet
the terms of their contracts.
Malaysian Securities - Malaysia replaced its former system of tax on the
repatriation of currency from the country. Effective February 14, 1999, the
government of Malaysia has imposed restrictions on the repatriation of currency.
Capital gains repatriated from principal amounts invested in Malaysia on or
after February 15, 1999 are subject to a flat 10% repatriation tax.
Options - A Fund may purchase put and call options to protect against a
decline in the market value of these securities that the Fund may seek to
purchase in the future. A Fund purchasing put or call options pays a premium. If
price movements in the underlying securities are such that exercise of the
options would not be profitable for a Fund, loss of the premium paid may be
offset by an increase in the value of the Fund's securities or by a decrease in
the cost of acquisition of securities by the Fund.
Transactions in purchased options for the Latin America Equity Fund\\(US)\\
for the year ended December 31, 1999 were as follows:
Contracts Premium
--------- -------
Outstanding at December 31, 1998 .. -- $ --
Options purchased (Net) ........... 55 2,750
Options exercised or terminated
in closing transactions (Net) ..... -- --
Options expired (Net) ............. -- --
--------- -------
Outstanding at December 31, 1999... 55 $ 2,750
========= =======
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 1940 Act, these securities are deemed to have
maturities shorter than the ultimate maturity dates. Accordingly, the maturity
dates reflected in the Schedule of Investments 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.
Expenses - Expenses that are directly related to one of the Funds are
charged directly to that Fund. Other operating expenses of the Fund are prorated
to the Funds on the basis of relative net assets.
Use of Estimates - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results could differ from those
estimates.
Other - Dividends from net investment income for the Equity and Fixed
Income Funds are paid to shareholders on a periodic basis. Dividends from net
investment income for the Money Market Funds are declared to shareholders daily
and distributed monthly. Any net realized capital gains on sales of securities
are distributed to shareholders at least annually.
The amounts of dividends from net investment income and distributions from
net realized capital gains are determined in accordance with federal income tax
regulations, which may differ from those amounts 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.
81
<PAGE>
Notes to Financial Statements (continued)
Due to the nature of the dividends that the Real Estate Fund \\(US)\\
receives from REITs, the Real Estate Fund\\(US)\\ anticipates it may have a tax
basis return of capital.
3. Administration and Distribution Agreements
Effective July 1, 1998, the Trust and ABN AMRO Fund Services, Inc. (the
"Administrator") entered into an administration agreement (the "Administration
Agreement"). Under the terms of the Administration Agreement, the Administrator
is entitled to a fee calculated daily and paid monthly at an annual rate of
0.15% of the average daily net assets of each Fund. The Administrator has agreed
to waive a portion of its fee for certain Funds through April 2000. After May 1,
2000, the Administrator may in its sole discretion cancel, modify or continue
this waiver.
Effective December 1, 1999, PFPC Inc. provides certain administrative
services and fund accounting pursuant to a sub-administration agreement with the
Administrator. Prior to December 1, 1999, First Data Investor Services Group,
Inc. provided these services.
Effective December 1, 1999, Provident Distributors, Inc. (the
"Distributor") serves as the distributor of the Funds. The Trust has adopted a
distribution plan for the Investor Share Class under the 1940 Act. The
Distributor is paid a fee of up to 0.25% of the average daily net assets of the
Investor Share Class of each Fund. Prior to December 1, 1999, First Data
Distributors, Inc. provided these distribution services to the Funds.
In addition, the Trust has adopted a shareholder servicing plan for the
Investor Share Class. The Distributor is paid a fee at an annual rate of up to
0.25% of the average daily net assets of the Investor Share Class of each Fund
for its efforts in maintaining client accounts, arranging bank wires, responding
to client inquiries concerning services provided on investment and assisting
clients in purchase, redemption and exchange transactions, and changing their
dividend options, account designations and addresses. For the current period,
the Distributor has waived, on a voluntary basis, a portion of this fee for the
Money Market Funds for an indefinite period of time.
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 for organizational work performed by a law firm of
which two officers of the Trust are partners.
Certain officers of the Trust are also employees of the Administrator,
Sub-Administrator and/or Advisor. Such officers are paid no fees by the Trust
for serving in their roles as officers of the Trust.
5. Investment Advisory Agreement
The Trust has entered into an investment advisory agreement with ABN AMRO Asset
Management (USA) Inc., (the "Advisor"), under which the Advisor is entitled to
an annual fee equal to 0.60% of the average daily net assets of the Fixed Income
Fund\\(US)\\ and Tax-Exempt Fixed Income Fund\\(US)\\; 0.80% of the average
daily net assets of the International Fixed Income Fund\\(US)\\, Value
Fund\\(US)\\, Growth Fund\\(US)\\ and Small Cap Fund\\(US)\\; 1.00% of the
average daily net assets of the Real Estate Fund\\(US)\\, International Equity
Fund\\(US), TransEurope Fund\\(US)\\, Latin America Equity Fund\\(US)\\ and
Asian Tigers Fund\\(US)\\; 0.70% of the average daily net assets of the Balanced
Fund\\(US)\\; 0.35% of the average daily net assets of the Treasury Money Market
Fund\\(US)\\ Money Market Fund\\(US)\\ and Tax-Exempt Money Market
Fund\\(US)\\, and 0.20% of the average daily net assets of the Government Money
Market Fund\\(US)\\.
The Advisor has contractually agreed, through April 2000, to waive a
portion of its advisory fees in an amount equal to 0.10% of the average daily
net assets of each of the Fixed Income Funds, except the International Fixed
Income Fund\\(US)\\. The Advisor has also contractually agreed, through April
2000, to waive a portion of its fee in an amount equal to 0.15% of the average
daily net assets of each of the Money Market Funds, except the Government Money
Market Fund\\(US)\\, and to waive a portion of its fee in an amount equal to
0.30% of the average daily net assets of the Real Estate Fund\\(US)\\.
Mellon Equity Associates, LLP and Delaware Management Company have entered
into investment sub-advisory agreements with the Advisor and serve as
Sub-Advisors to the Value Fund\\(US)\\ and the Small Cap Fund\\(US)\\,
respectively. Sub-advisory fees are paid by the Advisor.
82
<PAGE>
DECEMBER 31, 1999
6. Investment Transactions
The cost of security purchases and the proceeds from the sale of securities
excluding U.S. Government securities, and temporary cash investments, during the
year ended December 31, 1999 were as follows:
Purchases Sales
(000) (000)
--------- --------
Fixed Income Fund\\(US)\\ $ 90,490 $94,306
Tax-Exempt Fixed Income Fund\\(US)\\ 25,156 27,769
International Fixed Income Fund\\(US)\\ 6,207 6,966
Balanced Fund\\(US)\\ 52,385 52,264
Value Fund\\(US)\\ 154,155 183,138
Growth Fund\\(US)\\ 130,765 141,600
International Equity Fund\\(US)\\ 48,212 49,864
Small Cap Fund\\(US)\\ 70,099 71,779
Real Estate Fund\\(US)\\ 2,224 769
Asian Tigers Fund\\(US)\\ 33,629 30,905
Latin America Equity Fund\\(US)\\ 29,839 30,546
The cost of security purchases and the proceeds from the sale of U.S.
Government securities during the year ended December 31, 1999 were as follows:
Purchases Sales
(000) (000)
--------- ---------
Fixed Income Fund\\(US)\\ $308,240 $277,701
Tax-Exempt Fixed Income Fund\\(US)\\ - -
International Fixed Income Fund\\(US)\\ - -
Balanced Fund\\(US)\\ 43,780 40,855
Value Fund\\(US)\\ - -
Growth Fund\\(US)\\ - -
International Equity Fund\\(US)\\ - -
Small Cap Fund\\(US)\\ - -
Real Estate Fund\\(US)\\ - -
Asian Tigers Fund\\(US)\\ - -
Latin America Equity Fund\\(US)\\ - -
The aggregate gross unrealized appreciation and depreciation, net
unrealized appreciation and depreciation, and cost for all securities as
computed on a Federal income tax basis, at December 31, 1999, for each Fund is
as follows:
Net
Gross Gross Unrealized
Appreciated (Depreciated) Appreciation
Securities Securities (Depreciation) Cost
(000) (000) (000) (000)
------------ ----------- ------------- -------
Fixed Income Fund\\(US)\\ $ 60 $ (5,610) $ (5,550) $192,881
Tax-Exempt Fixed
Income Fund\\(US)\\ 510 (417) 93 29,692
International Fixed
Income Fund\\(US)\\ 619 (1,152) (533) 14,654
Balanced Fund\\(US)\\ 16,080 (4,372) 11,708 75,213
Value Fund\\(US)\\ 16,649 (5,155) 11,494 145,323
Growth Fund\\(US)\\ 65,703 (5,744) 59,959 139,331
International Equity
Fund\\(US)\\ 92,442 (2,945) 89,497 114,099
Small Cap Fund\\(US)\\ 5,245 (1,334) 3,911 52,626
Real Estate Fund\\(US)\\ 119 (1,187) (1,068) 8,563
Asian Tigers Fund\\(US)\\ 14,454 (1,880) 12,574 36,883
Latin America Equity
Fund\\(US)\\ 9,334 (1,089) 8,245 21,842
At December 31, 1999 the following Funds had available realized capital losses
to offset future net capital gains through fiscal year ended:
Amount Expiration
(000) Date
------ -----------
Treasury Money Market Fund\\(US)\\ $ 2 2006
Government Money Market Fund\\(US)\\ 2 2002
2 2004
Tax-Exempt Money Market Fund\\(US)\\ 1 2005
Fixed Income Fund\\(US)\\ 4,540 2007
Tax-Exempt Fixed Income Fund\\(US)\\ 1,063 2002
307 2003
189 2007
Real Estate Fund\\(US)\\ 114 2006
122 2007
Asian Tigers Fund\\(US)\\ 1,339 2005
7,164 2006
Latin America Equity Fund\\(US)\\ 2,398 2006
2,310 2007
Under the current tax law, capital and currency losses realized after October 31
may be deferred and treated as occurring on the first day of the following
fiscal year. For the fiscal year ended December 31, 1999, the following Funds
have elected to defer capital losses attributable to post-October losses:
Amount
(000)
-------
Fixed Income Fund\\(US)\\ $1,029
Tax-Exempt Fixed Income Fund\\(US)\\ 72
International Fixed Income Fund\\(US)\\ 191
International Equity Fund\\(US)\\ 43
Asian Tigers Fund\\(US)\\ 29
Latin America Equity Fund\\(US)\\ 13
7. Foreign Securities
Certain Funds may invest in foreign securities. Investing in securities of
foreign companies and foreign governments involves special risks and
considerations not typically associated with investing in the securities of U.S.
companies and the U.S. government. These risks include revaluation of currencies
and future political and economic developments. Moreover, securities of many
foreign companies and foreign governments and their markets may be less liquid
and their prices more volatile than those of securities of comparable U.S.
companies and the U.S. government. For more detailed information, please refer
to the Fund's Prospectus or Statement of Additional Information (SAI).
83
<PAGE>
8. Tax Information (unaudited)
During the fiscal year ended December 31, 1999, the following Funds made
distributions from long-term capital gains:
Amount
(000)
----------
International Fixed Income
Fund\\(US)\\ $ 93
Balanced Fund\\(US)\\ 5,790
Value Fund\\(US)\\ 7,757
Growth Fund\\(US)\\ 17,522
International Equity Fund\\(US)\\ 13,520
9. Special Meeting of Shareholders (unaudited)
A special meeting of shareholders of the following Funds was held on November
30, 1999 to vote on the proposals listed below. The results were are follows:
Proposal 1: Approval of an investment sub-advisory agreement between ABN AMRO
Asset Management (USA), Inc. and Mellon Equity Associates, LLP.
Votes
------------------------------------
Fund For Against Abstain
---- --------- --------- ---------
Value Fund\\(US)\\ 12,642,778 921 5,129
Proposal 2: Approval of an investment sub-advisory agreement between ABN AMRO
Asset Management (USA), Inc. and Delaware Management Company.
Votes
------------------------------------
Fund For Against Abstain
---- -------- --------- ---------
Small Cap Fund\\(US)\\ 3,657,021 423 1,465
10. Additional Fund Information
For the period ended December 31, 1999, the Board of Trustees of the Trust
approved the closing of the following funds. All shares of the Funds were
redeemed.
Effective Date Fund
-------------- ----
11/30/99 Intermediate Government Fixed Income Fund\\(US)\\
11/30/99 Limited Volatility Fixed Income Fund\\(US)\\
07/31/99 Small Cap Value Fund\\(US)\\
84
<PAGE>
[LOGO] ABN.AMRO Funds
- --------------------------------------------------------------------------------
A N N U A L R E P O R T
- --------------------------------------------------------------------------------
December 31, 1999
Money Market Funds
Treasury Money Market Fund\\(US)\\
Government Money Market Fund\\(US)\\
Money Market Fund\\(US)\\
Tax-Exempt Money Market Fund\\(US)\\
Fixed Income Funds
Fixed Income Fund\\(US)\\
Tax-Exempt Fixed Income Fund\\(US)\\
Balanced Fund
Balanced Fund\\(US)\\
Equity Funds
Value Fund\\(US)\\
Growth Fund\\(US)\\
Small Cap Fund\\(US)\\ (formerly Small Cap Growth Fund\\(US)\\)
Real Estate Fund\\(US)\\
International Funds
International Fixed Income Fund\\(US)\\
International Equity Fund\\(US)\\
Asian Tigers Fund\\(US)\\
Latin America Equity Fund\\(US)\\
TransEurope Fund\\(US)\\*
Investment Advisor
ABN AMRO Asset Management (USA) Inc.
208 South LaSalle Street
Fourth Floor
Chicago, IL 60604-1003
Administrator
ABN AMRO Fund Services, Inc.
208 South LaSalle Street
Fourth Floor
Chicago, IL 60604-1003
Distributor
Provident Distributors, Inc.
Four Falls Corporate Center
6th Floor
West Conshohocken, PA 19428-2961
Legal Counsel
Morgan, Lewis & Bockius LLP
1701 Market Street
Philadelphia, PA 19103
Independent Auditors
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116-5072
_________________________
* As of the date of this annual report, this fund had not yet commenced
operations.
For more information, call 1-800-443-4725.
http://www.abnamrofunds-usa.com
[LOGO] ABN.AMRO
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 unless preceded or accompanied by
a current prospectus.
<PAGE>
[LOGO] ABN - AMRO Funds
Annual Report
December 31, 1999
Institutional Class Shares
<PAGE>
DECEMBER 31, 1999
Letter to Shareholders
Dear Shareholder:
The introduction of this Institutional Fund family marks a new and exciting
chapter for ABN AMRO Asset Management (USA) Inc., the Advisor. For the first
time, we can provide a competitively priced cash vehicle at the institutional
level. While the ABN AMRO Institutional Prime Money Market Fund\\(US)\\ did not
begin operations until late December, I thought I would provide you with a short
review of 1999.
The U.S. bond market was under pressure for most of the year. The Federal
Reserve Board (the "Fed") raised rates three times during the year, basically
erasing the easing they implemented last year to address the credit crisis.
These increases contributed to volatility in the markets during the year, as did
rapidly rising oil prices, concerns regarding Year 2000 ("Y2K") and widespread
merger activity in Europe following the launch of the Euro. As we approached
December, the marketplace started pricing in another increase from the Fed even
though it did not occur at the December 21st meeting. It was a widely
anticipated effort by the Fed to assure a calm Y2K. The market continues to
price in further moves. The economy is still growing and there are now new
concerns for potential inflation.
The market will likely focus upon U.S. labor statistics as well as growth in
consumer demand. Looking forward, we will assess the market's value given the
very likely scenario of increased short-term rates.
The resurgence of the global economy in 1999, along with the continued strength
in the U.S. economy, was undeniable. Economic growth in Europe, Japan and Asia
helped the U.S. economy continue to grow at an above-average pace, with rising
incomes, strong job growth and a rising stock market that drove heavy investment
in technology and supported strong consumer spending.
Just as in the markets, it was also a year of change at the Fund's Advisor. In
April of 1999, Timothy Leach, after serving as President and CEO, resigned from
the firm and was replaced by James B. Wynsma as interim President.
On January 1, 2000, I was appointed President and CEO of the Advisor. For the
last two years, I have served as Executive Vice President within the Trust and
Asset Management division of our affiliate, LaSalle Bank, N.A. ("LaSalle Bank").
Mr. Wynsma continues as Chairman of the Advisor.
We are also pleased to report that there were no millennium-related issues. The
planning and testing preparations for the transition period by the Advisor,
Chase Global Investor Services, the custodian and PFPC Inc., the fund accountant
and transfer agent, proved to be adequate and provided an improved
infrastructure on which to continue operations.
Although we weathered a number of changes in 1999, we are proud of our
accomplishments. We intend to enhance the service levels for our institutional
customers, while continuing to expand and diversify the distribution network of
the Institutional Funds. During the year 2000, we will continue to earn your
trust and confidence.
Sincerely,
/s/ Randall C. Hampton
Randall C. Hampton
President
ABN AMRO Funds
An investment in the ABN AMRO Institutional Money Market Funds is neither
insured nor guaranteed by the Federal Deposit Insurance Corporation or any other
U.S. government agency. Although the Fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
Fund.
1
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
To the Shareholders and Board of Trustees of ABN AMRO Funds:
We have audited the accompanying statement of net assets of the Institutional
Prime Money Market Fund\(US)\, one of the funds comprising the ABN AMRO Funds,
as of December 31, 1999, and the related statement of operations, changes in net
assets, and financial highlights for the period from December 28, 1999
(commencement of operations) to December 31, 1999. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit.
We conducted our audit in accordance with auditing standards generally accepted
in the United States. 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
financial statements. Our procedures included confirmation of securities owned
as of December 31, 1999 by correspondence with the 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 audit provides 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
Institutional Prime Money Market Fund\(US)\, one of the funds constituting ABN
AMRO Funds, at December 31, 1999, the results of its operations, the changes in
its net assets, and the financial highlights for the period from December 28,
1999 (commencement of operations) to December 31, 1999, in conformity with
accounting principles generally accepted in the United States.
Boston, Massachusetts
February 11, 2000
Ernst & Young LLP
2
<PAGE>
DECEMBER 31, 1999
Statement of Net Assets
[PIE CHART OF INSTITUTIONAL PRIME MONEY MARKET FUND\\(US)\\]
<TABLE>
<CAPTION>
Face Market
Description Amount (000) Value (000)
- -------------------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY
OBLIGATION (A)- 51.9%
U.S. Treasury Bill
5.080%, 03/16/00............................... $ 2,600 $ 2,595
-----------
Total U.S. Treasury Obligation
(Cost $2,595).................................... 2,595
-----------
REPURCHASE AGREEMENTS - 48.1%
J.P. Morgan
3.070%, dated 12/31/99, matures
01/03/00, repurchase price
$1,200,410 (collateralized by
U.S. Government Agency
Instruments, total market
value: $1,224,106)........................... 1,200 1,200
Morgan Stanley
3.000%, dated 12/31/99, matures
01/03/00, repurchase price
$1,206,927 (collateralized by
U.S. Government Agency
Instruments, total market
value: $1,230,771)........................... 1,207 1,207
-----------
Total Repurchase Agreements
(Cost $2,407).................................... 2,407
-----------
Total Investments - 100.0%
(Cost $5,002).................................... 5,002
-----------
Net Other Assets and Liabilities - (0.0)%.......... $ (2)
Net Assets
Portfolio Shares of the Institutional
Share Class (based on 5,000,000 outstanding
shares of beneficial interest)............... 5,000
Undistributed net investment income............... -
Accumulated net realized
gain on investment........................... -
-----------
Total Net Assets - 100.0%.......................... $ 5,000
===========
Net Asset Value, Offering and
Redemption - Price Per Share
Institutional Share Class......................... $ 1.00
===========
</TABLE>
_________________________________________________________
(A) Rate noted represents annualized discount yield at the time of purchase.
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
Statement of Operations (000)
For the Period Ended December 31, 1999
<TABLE>
<CAPTION>
Institutional
Prime
Money Market
Fund\(US)\(1)
- ---------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Interest ............................................................. $ 2
------------
EXPENSES:
Investment advisory fees (Note 5) .................................... -
Administration fees (Note 3) ......................................... -
Custody fees ......................................................... -
Registration & filing fees ........................................... 2
------------
Total expenses before waivers/reimbursements ......................... 2
Less: Investment advisory reimbursement (Note 5).................... (2)
Less: Administration fees waived (Note 3) .......................... -
------------
Net expenses ......................................................... -
------------
NET INVESTMENT INCOME .................................................. 2
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS ............................ -
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ................... $ 2
============
</TABLE>
(1) Commenced operations on December 28, 1999
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
DECEMBER 31, 1999
Statement of Changes in Net Assets (000)
For the Period Ended December 31,
<TABLE>
<CAPTION>
Institutional
Prime
Money Market
Fund\(US)\(1)
- ----------------------------------------------------------------------------------------------------
1999
- ----------------------------------------------------------------------------------------------------
<S> <C>
Operations:
Net investment income .......................................................... $ 2
------------
Net increase in net assets resulting from operations ........................... 2
------------
Dividends distributed from:
Net investment income .......................................................... (2)
------------
Capital share transactions:
Proceeds from shares issued .................................................... 5,000
Shares issued in lieu of cash distributions .................................... -
Cost of shares repurchased ..................................................... -
------------
Increase in net assets derived from capital share transactions ................. 5,000
------------
Net increase in net assets ..................................................... 5,000
Net Assets:
Beginning of period ............................................................ -
------------
End of period .................................................................. $ 5,000
============
Capital share transactions:
Shares issued .................................................................. 5,000
Shares issued in lieu of cash distributions .................................... -
Shares repurchased ............................................................. -
------------
Increase in capital shares ................................................... 5,000
============
</TABLE>
(1) Commenced operations on December 28, 1999
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
Financial Highlights
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
Period ended
December 31, 1999(1)
- ----------------------------------------------------------------------------------------------------------
Institutional Prime Money Market Fund\(US)\
- ----------------------------------------------------------------------------------------------------------
<S> <C>
Net Asset Value Beginning of Period.......................................... $ 1.00
---------
Income from Investment Operations:
Net Investment Income.................................................... 0.00(A)
---------
Total from Investment Operations......................................... 0.00
---------
Less Dividends:
Dividends from Net Investment Income..................................... 0.00(A)
---------
Total Dividends.......................................................... 0.00
---------
Net Increase in Net Asset Value.............................................. 0.00
---------
Net Asset Value End of Period................................................ $ 1.00
=========
Total Return................................................................. 0.05%*
Ratios/Supplemental Data:
Net Assets End of Period (000)............................................... $5,000
Ratios to Average Net Assets:
Expenses including waivers............................................... 0.20%+
Net investment income including waivers.................................. 4.40%+
Expenses excluding waivers............................................... 3.39%+
Net investment income excluding waivers.................................. 1.22%+
</TABLE>
____________________________
(1) Commenced operations on December 28, 1999.
(A) Per share was less than $0.005
+ Annualized
* Not Annualized
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
DECEMBER 31, 1999
Notes to Financial Statements
1. Organization
ABN AMRO Funds (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 (the "1940 Act"), as an
open-end management investment company with 19 funds: Treasury Money Market
Fund\\(US)\\, Government Money Market Fund\\(US)\\, Money Market Fund\\(US)\\,
Tax-Exempt Money Market Fund\\(US)\\ (collectively the "Money Market Funds"),
Fixed Income Fund\\(US)\\, Tax-Exempt Fixed Income Fund\\(US)\\, International
Fixed Income Fund\\(US)\\, Balanced Fund\\(US)\\, (collectively the "Fixed
Income Funds"), Value Fund\\(US)\\, Growth Fund\\(US)\\, International Equity
Fund\\(US)\\, Small Cap Fund\\(US)\\ (formerly the Small Cap Growth
Fund\\(US)\\), Real Estate Fund\\(US)\\, TransEurope Fund\\(US)\\, Asian Tigers
Fund\\(US)\\ and Latin America Equity Fund\\(US)\\ (collectively the "Equity
Funds") (all funds collectively the "Funds"). The Trust also consists of
Institutional Prime Money Market Fund\\(US)\\, Institutional Treasury Money
Market Fund\\(US)\\ and Institutional Government Money Market Fund\\US\\
(collectively the "Institutional Money Market Funds").
TransEurope Fund\\(US)\\, Institutional Treasury Money Market Fund\\(US)\\
and Institutional Government Money Market Fund\\(US)\\ have not yet commenced
operations as of December 31, 1999. The prospectuses describe each Fund's
investment objectives, policies and strategies.
The assets of each Fund are segregated, and a shareholder's interest is
limited to the Fund in which shares are held. The Money Market Funds, the Fixed
Income Funds and the Equity Funds offer two classes of shares: Common Share
Class (previously the Trust Class) and Investor Share Class (available through
banks, various brokerage firms and other financial intermediaries). The
Institutional Money Market Funds of the Trust offer two classes of shares:
Institutional Shares and Institutional Service Shares. The accompanying
financial statements and financial highlights are those of the Institutional
Prime Money Market\\(US)\\ (the "Fund").
2. Significant Accounting Policies
The following is a summary of the significant accounting policies followed by
the Fund.
Security Valuation - Investment securities held by the Fund are stated at
amortized cost, which approximates market value. Under the amortized cost
method, any discount or premium is accreted or amortized ratably to the maturity
of the security and is included in interest income.
Federal Income Taxes - It is the Fund's intention to qualify as a regulated
investment company for federal income tax purposes by complying with the
appropriate provisions of Subchapter M 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 a trade date basis. 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.
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 by 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 Fund may be delayed or limited.
Net Asset Value Per Share - The net asset value per share of the Fund is
calculated each business day. In general, it is computed by dividing the assets
of the Fund less its liabilities, by the number of outstanding shares of the
Fund.
Maturity Dates - Certain variable rate and floating rate securities of the
Fund are subject to "maturity shortening" devices such as put or demand
features. Under Rule 2a-7 of the 1940 Act, these securities are deemed to have
maturities shorter than the ultimate maturity dates. Accordingly, the maturity
dates reflected in the Statement of Net Assets are the shorter of the effective
put/demand date or the ultimate maturity date.
Use of Estimates - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results could differ from those
estimates.
Other - Net investment income for the Fund is declared to shareholders
daily and distributed monthly. Any net realized capital gains on sales of
securities are distributed to shareholders at least annually.
The amounts of dividends from net investment income and distributions from
net realized capital gains are determined in accordance with federal income tax
regulations, which may differ from those amounts 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 ABN AMRO Fund Services, Inc. (the "Administrator") have entered
into an administration agreement (the "Administration Agreement"). Under the
terms of the Administration Agreement, the Administrator is entitled to a fee
calculated daily and paid monthly at an annual rate 0.05% of the average daily
net assets of the Fund. The Administrator has agreed to voluntarily waive a
portion of its fee through April 2000. After May 1, 2000, the Administrator may
in its sole discretion cancel, modify or continue this waiver.
7
<PAGE>
PFPC Inc. provides certain administrative services and fund accounting
pursuant to a sub-administration agreement with the Administrator.
Provident Distributors, Inc. (the "Distributor") serves as the distributor
of the Funds.
4. Transactions with Affiliates
Certain officers of the Trust are also employees of the Administrator,
Sub-Administrator and/or Advisor. Such officers are paid no fees by the Trust
for serving in their roles as officers of the Trust.
5. Investment Advisory Agreement
The Trust has entered into an investment advisory agreement with ABN AMRO Asset
Management (USA) Inc., (the "Advisor"), under which the Advisor is entitled to
an annual fee equal to 0.10% of the average daily net assets of the Fund. The
Advisor voluntarily waived it fees for the period ended December 31, 1999. The
Advisor may in its sole discretion cancel, modify or continue this waiver.
8
<PAGE>
[LOGO] ABN - AMRO Funds
- --------------------------------------------------------------------------------
A N N U A L R E P O R T
- --------------------------------------------------------------------------------
December 31, 1999
Institutional Money Market Funds
Institutional Prime Money Market Fund\\(US)\\
Institutional Treasury Money Market Fund\\(US)\\*
Institutional Government Money Market Fund\\(US)\\*
- -------------------------------------------------
* As of the date of this annual report, these funds had not yet commenced
operations.
For more information, call 1-800-814-3402.
http://www.abnamrofunds-usa.com
INVESTMENT ADVISOR
ABN AMRO Asset Management (USA) Inc.
208 South LaSalle Street
Fourth Floor
Chicago, IL 60604-1003
ADMINISTRATOR
ABN AMRO Fund Services, Inc.
208 South LaSalle Street
Fourth Floor
Chicago, IL 60604-1003
DISTRIBUTOR
Provident Distributors, Inc.
Four Falls Corporate Center
6th Floor
West Conshohocken, PA 19428-2961
LEGAL COUNSEL
Morgan, Lewis & Bockius LLP
1701 Market Street
Philadelphia, PA 19103
INDEPENDENT AUDITORS
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116-5072
[LOGO] ABN - AMRO
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 unless preceded or
accompanied by a current prospectus.
