<PAGE>
THE VALIANT FUND
SEMI-ANNUAL REPORT
FEBRUARY 28, 1998
(UNAUDITED)
<PAGE>
The Valiant Fund
U.S. Treasury Money Market Portfolio
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
PAR VALUE (NOTE 1)
--------- --------
<S> <C> <C>
U.S. TREASURY BILLS (A)--26.9%
$ 15,000,000 5.370%, 04/16/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,897,075
30,000,000 5.270%, 04/23/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,767,241
10,000,000 5.150%, 04/30/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,914,167
10,000,000 5.175%, 05/28/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,873,500
10,000,000 5.160%, 06/25/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,833,733
20,000,000 5.200%, 07/23/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,584,000
5,000,000 4.950%, 11/12/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,824,000
15,000,000 5.040%, 11/12/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,462,400
5,000,000 4.820%, 12/10/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,809,878
5,000,000 5.000%, 12/10/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,802,778
5,000,000 5.010%, 01/07/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,782,900
5,000,000 5.075%, 02/04/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,760,347
-------------
TOTAL U.S. TREASURY BILLS (COST $132,312,019) . . . . . . . . . . . . . . . . . . . 132,312,019
-------------
REPURCHASE AGREEMENTS--73.1%
108,000,000 First Boston Corp.
5.630%, 03/02/98, Dated 02/27/98, Repurchase Price $108,050,670
(Collateralized by U.S. Treasury Notes, 5.75%, 5.87%, 6.12%, & 6.25%, due 12/31/98,
01/31/99, 12/31/01, & 01/31/02; par value $50,500,000, $26,893,000, $28,380,000, &
$4,210,000; valued at $51,044,022, $27,086,412, $29,128,480, & $4,319,088,
respectively). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108,000,000
10,124,000 Goldman, Sachs & Co., Inc.
5.500%, 03/02/98, Dated 02/27/98, Repurchase Price $10,128,640
(Collateralized by U.S. Treasury Bill, 5.42%; par value $10,812,000; valued at
$10,327,276) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,124,000
121,000,000 J.P. Morgan & Co., Inc.
5.630%, 03/02/98, Dated 02/27/98, Repurchase Price $121,056,769
(Collateralized by U.S. Treasury Notes, 7.87%, 7.12%, & 5.12%, due 08/15/01,
09/30/99, & 02/28/98; par value $59,839,000, $3,567,000, & $54,169,000; valued at
$64,158,807, $3,754,218, & $55,507,337, respectively). . . . . . . . . . . . . . . 121,000,000
121,000,000 Morgan Stanley Group, Inc.
5.630%, 03/02/98, Dated 02/27/98, Repurchase Price $121,056,769
(Collateralized by U.S. Treasury Notes, 6.12%, 7.12%, 5.62%, 6.37%, 7.00%,
7.12%, 6.25%, 7.87%, due 08/15/07, 02/29/00, 11/30/99, 07/15/99, 04/15/99,
10/15/98, 06/30/98, & 04/15/98; par value $14,275,000, $13,750,000, $12,092,000,
$14,839,000, $9,455,000, $14,065,000, $13,000,000, & $2,590,000; valued at
$14,721,956, $14,632,450, $12,263,089, $15,106,317, $9,849,052, $14,574,408,
$13,166,229, & $2,673,335, respectively and U.S. Treasury Bonds, 9.12% & 8.87%,
due 05/15/18 & 08/15/17; par value $9,866,000 & $9,823,000; valued at
$13,691,043 & $13,059,718, respectively) . . . . . . . . . . . . . . . . . . . . . 121,000,000
-------------
TOTAL REPURCHASE AGREEMENTS (COST $360,124,000). . . . . . . . . . . . . . . . . . 360,124,000
-------------
TOTAL INVESTMENTS--100.0% (COST $492,436,019)* . . . . . . . . . . . . . . . . . . $492,436,019
-------------
-------------
</TABLE>
- ----------------------------------------------------------------------
(A) Rate represents annualized yield to maturity at date of purchase.
* Aggregate cost for Federal tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS.
1
<PAGE>
The Valiant Fund
General Money Market Portfolio
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
PAR VALUE (NOTE 1)
--------- --------
<S> <C>
BANKERS' ACCEPTANCE NOTICES (A)--0.7%
Republic National Bank of New York
$ 3,000,000 5.420%, 05/26/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,961,157
------------
TOTAL BANKERS' ACCEPTANCE NOTICES (COST $2,961,157). . . . . . . . . . . . . . . . 2,961,157
------------
COMMERCIAL PAPER (A)--90.9%
BEVERAGES--2.4%
Brown-Forman Corp.
10,000,000 5.480%, 03/20/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,971,078
------------
CHEMICALS--3.6%
Dupont (E I) De Nemours & Co.
10,000,000 5.550%, 03/10/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,986,125
5,000,000 5.360%, 08/10/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,879,400
------------
14,865,525
------------
COMPUTERS & BUSINESS EQUIPMENT--7.5%
Hewlett Packard Co.
25,000,000 5.450%, 03/30/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,890,243
6,000,000 5.440%, 04/13/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,961,014
------------
30,851,257
------------
COSMETICS & TOILETRIES--4.6%
Gillette Co.
19,000,000 5.640%, 03/02/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,997,023
------------
DRUGS & HEALTH CARE--4.5%
Merck & Co., Inc.
18,795,000 5.400%, 04/21/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,651,218
------------
ELECTRONICS--1.7%
Motorola, Inc.
7,000,000 5.470%, 03/05/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,995,746
------------
FINANCIAL SERVICES--9.1%
Caterpillar Financial Services Corp.
10,000,000 5.350%, 06/10/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,849,903
8,500,000 5.330%, 07/14/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,330,106
------------
18,180,009
------------
Ford Motor Credit Co.
12,000,000 5.430%, 06/05/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,826,240
8,000,000 5.390%, 06/30/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,855,069
------------
19,681,309
------------
37,861,318
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
2
<PAGE>
The Valiant Fund
General Money Market Portfolio
SCHEDULE OF INVESTMENTS - (Continued)
FEBRUARY 28, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
PAR VALUE (NOTE 1)
--------- --------
<S> <C>
COMMERCIAL PAPER (A)-- (CONTINUED)
FOOD PRODUCTS--14.9%
Coca Cola Co.
$ 25,000,000 5.390%, 05/13/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $24,726,757
-----------
General Mills, Inc.
16,000,000 5.650%, 03/02/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,997,489
-----------
H.J. Heinz Co.
6,000,000 5.450%, 03/20/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,982,742
-----------
Kellogg Co.
10,000,000 5.550%, 03/02/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,998,458
-----------
Sara Lee Corp.
4,883,000 5.650%, 03/04/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,880,701
-----------
61,586,147
-----------
GAS & PIPELINE UTILITIES--1.0%
Nicor, Inc.
4,300,000 5.420%, 05/01/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,260,509
-----------
INSURANCE--3.6%
AIG Funding, Inc.
15,000,000 5.360%, 04/15/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,899,500
-----------
INTERNATIONAL OIL--14.2%
Amoco Co.
5,000,000 5.500%, 03/03/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,998,472
15,000,000 5.400%, 04/21/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,885,250
-----------
19,883,722
-----------
Atlantic Richfield Co.
7,000,000 5.420%, 06/25/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,877,749
-----------
Shell Oil Co.
7,000,000 5.430%, 04/30/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,936,650
5,000,000 5.410%, 05/13/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,945,148
-----------
11,881,798
-----------
Sonoco Products Co.
20,000,000 5.520%, 03/09/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,975,467
-----------
58,618,736
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE>
The Valiant Fund
General Money Market Portfolio
SCHEDULE OF INVESTMENTS - (Continued)
FEBRUARY 28, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
PAR VALUE (NOTE 1)
--------- --------
<S> <C>
COMMERCIAL PAPER (A)-- (CONTINUED)
LEISURE TIME--5.5%
Walt Disney Co.
$ 8,000,000 5.530%, 03/02/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,998,771
11,000,000 5.450%, 05/18/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,870,109
4,000,000 5.330%, 07/22/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,915,312
------------
22,784,192
------------
NON-BANK FINANCE--8.4%
General Electric Capital Corp.
7,000,000 5.470%, 04/13/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,954,265
7,000,000 5.400%, 08/05/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,835,150
------------
13,789,415
------------
IBM Credit Corp.
6,000,000 5.530%, 03/03/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,998,157
10,000,000 5.470%, 03/31/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,954,416
5,000,000 5.540%, 04/15/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,965,375
------------
20,917,948
------------
34,707,363
------------
PHOTOGRAPHY--4.8%
Eastman Kodak Co.
10,000,000 5.470%, 03/10/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,986,325
10,000,000 5.470%, 03/12/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,983,286
------------
19,969,611
------------
PUBLISHING--1.5%
McGraw-Hill Co., Inc.
6,200,000 5.370%, 09/22/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,010,409
------------
SOAPS AND DETERGENTS--2.4%
Procter & Gamble Co.
10,000,000 5.450%, 03/13/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,981,833
------------
TELECOMMUNICATIONS--1.2%
American Telephone & Telegraph Co.
5,000,000 5.460%, 03/25/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,981,800
------------
TOTAL COMMERCIAL PAPER (COST $375,993,265) . . . . . . . . . . . . . . . . . . . . 375,993,265
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE>
The Valiant Fund
General Money Market Portfolio
SCHEDULE OF INVESTMENTS - (Continued)
FEBRUARY 28, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
PAR VALUE (NOTE 1)
--------- --------
<S> <C>
REPURCHASE AGREEMENTS--8.4%
$ 10,000,000 First Boston Corp.
5.630%, 03/02/98, Dated 02/27/98, Repurchase Price $10,004,693
(Collateralized by U.S. Treasury Note, 7.12%, due 02/29/00;
par value $9,635,000; valued at $10,248,494) . . . . . . . . . . . . . . . . . . . $ 10,000,000
14,912,000 J.P. Morgan & Co., Inc.
5.630%, 03/02/98, Dated 02/27/98, Repurchase Price $14,918,996
(Collateralized by U.S. Treasury Note, 5.75%, due 11/15/00;
par value $14,909,000; valued at $15,210,614). . . . . . . . . . . . . . . . . . . 14,912,000
10,000,000 Morgan Stanley Group, Inc.
5.630%, 03/02/98, Dated 02/27/98, Repurchase Price $10,004,692
(Collateralized by U.S. Treasury Note, 6.50%, due 08/15/05;
par value $9,770,000; valued at $10,249,401) . . . . . . . . . . . . . . . . . . . 10,000,000
------------
TOTAL REPURCHASE AGREEMENTS (COST $34,912,000) . . . . . . . . . . . . . . . . . . 34,912,000
------------
TOTAL INVESTMENTS--100.0% (COST $413,866,422)* . . . . . . . . . . . . . . . . . . $413,866,422
------------
------------
</TABLE>
- ------------------------------------------------------------
(A) Rate represents annualized yield to maturity at date of purchase.
* Aggregate cost for Federal tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
The Valiant Fund
Tax-Exempt Money Market Portfolio
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
PAR VALUE (NOTE 1)
--------- --------
<S> <C>
MUNICIPAL BONDS AND NOTES--100.0%
ALASKA--1.9%
$ 5,000,000 Alaska Housing Finance Corporation
Series C
3.450%, 06/01/26 (1)
SBPA: Swiss Bank Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,000,000
----------
CALIFORNIA--0.8%
2,200,000 California State
RANS
4.500%, 06/30/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,206,900
----------
COLORADO--2.1%
5,500,000 Colorado Health Facilities
Catholic Health Initiative, Series 97B
3.450%, 12/01/25 (1)
SBPA: Toronto Dominion Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,500,000
----------
CONNECTICUT--2.0%
3,000,000 Connecticut State Health & Educational Facility
Yale University, Series T
3.250%, 07/01/29 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000
2,200,000 Connecticut State Special Assessment
Unemployment Compensation, Series C, FGIC
3.900%, 07/01/98
SBPA: FGIC Securities Purchase, Inc. . . . . . . . . . . . . . . . . . . . . . . . 2,200,000
----------
5,200,000
----------
FLORIDA--3.6%
3,000,000 Dade County Water & Sewer Revenue Systems
3.350%, 10/05/22 (1)
SBPA: Commerzbank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000
1,000,000 Gainesville Utilities Systems
Series C
3.550%, 03/31/98
LINE: Bank of America, Sunbank . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000
5,234,000 Gainesville Utilities Systems
Series C
3.600%, 05/19/98
LINE: Bank of America, Sunbank . . . . . . . . . . . . . . . . . . . . . . . . . . 5,234,000
----------
9,234,000
----------
GEORGIA--8.1%
3,500,000 Burke County Development Authority, PCR
Georgia Power Project, Series 3
3.650%, 07/01/24 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500,000
5,000,000 De Kalb Private Hospital Authority
Egelston Children's Hospital, Series A
3.400%, 03/01/24 (1)
LOC: Suntrust Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
The Valiant Fund
Tax-Exempt Money Market Portfolio
SCHEDULE OF INVESTMENTS - (Continued)
FEBRUARY 28, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
PAR VALUE (NOTE 1)
--------- --------
<S> <C>
GEORGIA--(Continued)
$ 2,400,000 De Kalb Private Hospital Authority
Egleston Children's Hospital, Project 95A
3.400%, 12/01/17 (1)
LOC: Suntrust Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,400,000
5,000,000 Georgia Municipal Electric Authority Revenue
3.350%, 01/01/16 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000
5,000,000 Georgia Municipal Gas Authority Revenue
Agency Project, Series C
3.350%, 11/01/07 (1)
LOC: Wachovia Bank of N.C., Morgan Guaranty,Bayerisch Landesbank GZ,
Bank of America. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000
-----------
20,900,000
HAWAII--0.4%
1,000,000 Hawaii Department of Budget & Finance
Kaiser Permanente, Series 84B
3.750%, 03/01/98 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000
-----------
ILLINOIS--3.2%
5,200,000 Chicago Illinois GO
Tender Notes
3.550%, 10/29/98 (2)
LOC: Morgan Guaranty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,200,000
3,000,000 Chicago Illinois GO
Tender Notes, Series 98
3.550%, 02/04/99 (2)
LOC: Morgan Guaranty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000
-----------
8,200,000
KANSAS--4.1%
10,600,000 Kansas Department of Transportation Highway Revenue
Series B
3.350%, 09/01/14 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,600,000
-----------
LOUISIANA--2.5%
1,800,000 Lake Charles Harbor & Terminal District
(Conoco)
3.650%, 01/11/11 (1)
GTY: Dupont. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,800,000
4,550,000 Louisiana Offshore Terminal Authority
Loop Inc.
3.650%, 09/01/06 (1)
LOC: Union Bank of Switzerland . . . . . . . . . . . . . . . . . . . . . . . . . . 4,550,000
-----------
6,350,000
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
The Valiant Fund
Tax-Exempt Money Market Portfolio
SCHEDULE OF INVESTMENTS - (Continued)
FEBRUARY 28, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
PAR VALUE (NOTE 1)
--------- --------
<S> <C>
MARYLAND--3.1%
$ 8,000,000 Howard County
Series B
3.500%, 03/10/98
LOC: Union Bank of Switzerland . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,000,000
-----------
MASSACHUSETTS--1.6%
4,200,000 Massachusetts Bay Transportation Authority
Series 84A
3.750%, 03/01/98 (1)
LOC: State Street Bank & Trust . . . . . . . . . . . . . . . . . . . . . . . . . . 4,200,000
-----------
MICHIGAN--5.6%
3,000,000 Michigan Municipal Bond Authority Revenue
Series B
4.500%, 07/02/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,006,814
3,000,000 Michigan State Building Authority Revenue
3.400%, 03/02/98
LOC: Canadian Imperial Bank of Commerce. . . . . . . . . . . . . . . . . . . . . . 3,000,000
5,500,000 Michigan State Housing Development Rental Revenue
Series 97B
3.350%, 04/01/19 (1)
LOC: Landesbank Hessen--Thueringer GZ. . . . . . . . . . . . . . . . . . . . . . . 5,500,000
3,000,000 University of Michigan
Series A
3.100%, 03/04/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000
-----------
14,506,814
-----------
MINNESOTA--1.2%
3,000,000 Minnesota State GO
Series 96
4.500%, 05/01/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,004,880
-----------
MISSISSIPPI--1.3%
3,400,000 Jackson County Port Facility
Chevron USA Project
3.650%, 06/01/23 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,400,000
-----------
NEVADA--2.3%
5,000,000 Clark County Airport Improvement Authority Revenue
MBIA Insured
3.350%, 07/01/25 (1)
LINE: Union Bank Switzerland . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000
1,000,000 Las Vegas Valley Water District
3.350%, 04/06/98
LOC: Union Bank of Switzerland, Westdeutche Landesbank . . . . . . . . . . . . . . 1,000,000
-----------
6,000,000
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
The Valiant Fund
General Money Market Portfolio
SCHEDULE OF INVESTMENTS - (Continued)
FEBRUARY 28, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
PAR VALUE (NOTE 1)
--------- --------
<S> <C>
NEW MEXICO--2.1%
$ 5,400,000 Albuquerque Airport Authority Revenue
(AMBAC)
3.350%, 07/01/14 (1)
SBPA: Canadian Imperial Bank of Commerce . . . . . . . . . . . . . . . . . . . . . $ 5,400,000
-----------
NEW YORK--1.2%
3,000,000 New York City Municipal Water Finance Authority
(FGIC), Series 94G
3.650%, 06/15/24 (1)
SBPA: FGIC Securities Purchase, Inc. . . . . . . . . . . . . . . . . . . . . . . . 3,000,000
-----------
NORTH CAROLINA--6.7%
5,000,000 Charlotte Airport Revenue
MBIA 93A
3.350%, 07/01/16 (1)
SBPA: Commerzbank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000
3,300,000 Raleigh Durham Airport Authority
American Airlines, Series A
3.650%, 11/01/15 (1)
LOC: Royal Bank of Canada. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,300,000
2,800,000 Raleigh Durham Airport Authority
American Airlines, Series B1
3.650%, 11/01/15 (1)
LOC: Royal Bank of Canada. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,800,000
6,200,000 Winston Salem Water & Sewer System
3.400%, 06/01/14 (1)
SBPA: Wachovia Bank of N.C.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,200,000
-----------
17,300,000
-----------
TENNESSEE--6.2%
6,600,000 Memphis Tennessee GO
Series A
3.500%, 08/01/03
SBPA: Westdeutche Landesbank . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,600,000
1,400,000 Metro Nashville/Davidson County Health
Vanderbilt University
3.950%, 05/01/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,400,000
3,000,000 Tennessee State
BAN Series 97A
3.350%, 07/02/01 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000
5,000,000 Tennessee State
BAN Series E
3.350%, 07/02/01 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000
-----------
16,000,000
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
The Valiant Fund
Tax-Exempt Money Market Portfolio
SCHEDULE OF INVESTMENTS - (Continued)
FEBRUARY 28, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
PAR VALUE (NOTE 1)
--------- --------
<S> <C>
TEXAS--16.2%
$ 3,000,000 City of Houston Water & Sewer
3.550%, 03/05/98
LOC: Swiss Bank Corp, Westdeutche Landesbank . . . . . . . . . . . . . . . . . . . $ 3,000,000
5,300,000 Harris County Texas Health Facilities
Methodist Hospital
3.650%, 12/01/25 (1)
LINE: Morgan Guaranty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,300,000
5,000,000 Houston Texas GO
Series B
3.500%, 06/09/98
LINE: Morgan Guaranty, Union Bank Switzerland. . . . . . . . . . . . . . . . . . . 5,000,000
1,400,000 Lone Star Texas Airport Improvement Authority
American Airlines, Series A4
3.700%, 12/01/14 (1)
LOC: Royal Bank of Canada. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,400,000
3,940,000 Lower Colorado River Authority Texas Revenue
Refunding Junior Lien
3.400%, 01/01/13 (1)
SBPA: Bayerische Landesbank GZ . . . . . . . . . . . . . . . . . . . . . . . . . . 3,940,000
2,600,000 North Central Texas Health Facilities
Presbyterian Medical Center, Series C
3.700%, 12/01/15 (1)
SBPA: NationsBank Texas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,600,000
1,400,000 Texas A & M University
Series B
3.250%, 04/09/98
LINE: Morgan Guaranty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,400,000
3,700,000 Texas Municipal Power Agency
3.450%, 04/14/98
LINE: Morgan Guaranty, Canadian Imperial Bank of Commerce. . . . . . . . . . . . . 3,700,000
4,700,000 Texas Municipal Power Agency
3.500%, 04/15/98
LINE: Morgan Guaranty, Canadian Imperial Bank of Commerce. . . . . . . . . . . . . 4,700,000
1,000,000 Texas State
Public Finance Authority
6.000%, 10/01/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,014,106
5,700,000 Texas State
TRANS, Series A
4.750%, 08/31/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,725,316
4,008,000 University of Texas Revenue Finance Systems
3.600%, 05/18/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,008,000
-----------
41,787,422
-----------
UTAH--6.1%
2,750,000 Intermountain Power Agency
Power Supply Revenue, Series 85E
3.750%, 03/16/98
LOC: Swiss Bank Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,750,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
The Valiant Fund
Tax-Exempt Money Market Portfolio
SCHEDULE OF INVESTMENTS - (Continued)
FEBRUARY 28, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
PAR VALUE (NOTE 1)
--------- --------
<S> <C>
UTAH--(CONTINUED)
$ 2,500,000 Intermountain Power Agency
Power Supply Revenue, Series 85F
3.750%, 03/16/98
LOC: Credit Suisse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,500,000
3,000,000 Intermountain Power Agency
Power Supply Revenue, Series 85F
3.800%, 06/15/98 (2)
LOC: Morgan Guaranty Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,001,553
2,800,000 State of Utah GO
Series 97B
3.300%, 03/05/98
LINE: Toronto Dominion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,800,000
1,800,000 State of Utah GO
Series 97B
3.500%, 03/05/98
LINE: Toronto Dominion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,800,000
3,000,000 State of Utah GO
Series 97B
3.050%, 03/10/98
LINE: Toronto Dominion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000
-----------
15,851,553
-----------
VERMONT--0.5%
1,255,000 Vermont Education, Health & Buildings Finance Agency
Middlebury College
3.950%, 05/01/98 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,255,000
-----------
VIRGINIA--3.8%
6,000,000 Treasury Board of Commonwealth of Virginia
Series 97
3.100%, 03/06/98
LINE: Bank of Nova Scotia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000,000
3,700,000 Treasury Board of Commonwealth of Virginia
Series 97
3.200%, 04/09/98
LINE: Bank of Nova Scotia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,700,000
-----------
9,700,000
-----------
WASHINGTON--7.4%
6,200,000 Seattle Water System Revenue
3.450%, 09/01/25 (1)
LOC: Bayerische Landesbank GZ. . . . . . . . . . . . . . . . . . . . . . . . . . . 6,200,000
3,000,000 Washington State GO
Series 96A
3.375%, 06/01/20 (1)
SBPA: Landesbank Hessen-Thueringen GZ. . . . . . . . . . . . . . . . . . . . . . . 3,000,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
The Valiant Fund
Tax-Exempt Money Market Portfolio
SCHEDULE OF INVESTMENTS - (Continued)
FEBRUARY 28, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
PAR VALUE (NOTE 1)
--------- --------
<S> <C>
WASHINGTON--(Continued)
$ 5,800,000 Washington State GO
Series 96B
3.350%, 06/01/20 (1)
SBPA: Landesbank Hessen-Thueringen GZ. . . . . . . . . . . . . . . . . . . . . . . $ 5,800,000
4,100,000 Washington State Public Power Supply
3.350%, 07/01/17 (1)
LOC: Bank of America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,100,000
-----------
19,100,000
-----------
WISCONSIN--3.6%
3,000,000 Sheboygan, PCR
Wisconsin Electric Power Company
3.450%, 09/01/15 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000
500,000 Sheboygan, PCR
Wisconsin Power & Light
3.250%, 01/08/14 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000
5,741,000 Wisconsin State GO
3.250%, 03/30/98
LINE: Bank of Nova Scotia, Commerzbank . . . . . . . . . . . . . . . . . . . . . . 5,741,000
-----------
9,241,000
-----------
WYOMING--2.4%
3,600,000 Lincoln County Wyoming, PCR
Series D
3.650%, 11/01/14 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,600,000
1,450,000 Uinta County Wyoming, PCR
Chevron Project, Series 93
3.600%, 08/15/20 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,450,000
1,150,000 Uinta County Wyoming, PCR
Chevron Project, Series 97
3.600%, 04/01/10 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,150,000
-----------
6,200,000
-----------
TOTAL INVESTMENTS--100.0% (COST $258,137,569)* . . . . . . . . . . . . . . . . . . $258,137,569
-----------
-----------
</TABLE>
- -----------------------------------------------------------
* Aggregate cost for Federal tax purposes.
(1) Variable rate demand notes are payable upon not more than one, seven, or
thirty days' notice. The interest rate shown reflects the rate currently
in effect.
(2) Put bonds and notes have demand features which mature in one year. The
interest rate shown reflects the rate currently in effect.
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
The Valiant Fund
Tax-Exempt Money Market Portfolio
SCHEDULE OF INVESTMENTS - (Continued)
FEBRUARY 28, 1998 (UNAUDITED)
GLOSSARY OF TERMS
BAN = Bond Anticipation Notes
FGIC = Financial Guaranty Insurance Corp.
GO = General Obligations
GTY = Guarantee
LINE = Line of Credit
LIQ = Liquidity Facility
LOC = Letter of Credit
MBIA = Municipal Bond Insurance Association
PCR = Pollution Control Revenue
RANS = Revenue Anticipation Notes
SBPA = Standby Purchase Agreement
TRANS = Tax and Revenue Anticipation Notes
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
The Valiant Fund
STATEMENTS OF ASSETS AND LIABILITIES
FEBRUARY 28, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
U.S. TREASURY U.S. TREASURY GENERAL TAX-EXEMPT
MONEY MARKET INCOME MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------ ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments (Note 1):
Investments at value . . . . . . . . . . $ 132,312,019 $ -- $ 378,954,422 $ 258,137,569
Repurchase agreements. . . . . . . . . . 360,124,000 -- 34,912,000 --
-------------- ------- -------------- --------------
Total investments at value . . . . . . 492,436,019 -- 413,866,422 258,137,569
Cash . . . . . . . . . . . . . . . . . . . 57 30,114 343,905 78,849
Interest receivable. . . . . . . . . . . . 112,566 -- 10,920 1,149,007
Deferred organization expense (Note 1) . . 6,068 4,932 2,797 3,030
-------------- ------- -------------- --------------
Total Assets . . . . . . . . . . . . . 492,554,710 35,046 414,224,044 259,368,455
-------------- ------- -------------- --------------
LIABILITIES:
Dividends payable. . . . . . . . . . . . . 1,797,059 4,475 1,565,402 613,201
Advisory fee payable (Note 2). . . . . . . 71,596 220 74,774 40,057
Distribution fee payable (Note 2). . . . . 107,656 -- 2,892 --
Accrued expenses . . . . . . . . . . . . . 6,068 4,932 2,797 3,030
-------------- ------- -------------- --------------
Total Liabilities. . . . . . . . . . . 1,982,379 9,627 1,645,865 656,288
-------------- ------- -------------- --------------
NET ASSETS . . . . . . . . . . . . . . . . . $ 490,572,331 $25,419 $ 412,578,179 $ 258,712,167
-------------- ------- -------------- --------------
-------------- ------- -------------- --------------
NET ASSETS consist of:
Paid-in capital (Note 4) . . . . . . . . . $ 490,622,778 $25,497 $ 412,799,202 $ 258,834,934
Accumulated net realized loss on
investments sold . . . . . . . . . . . . (50,447) (78) (221,023) (122,767)
-------------- ------- -------------- --------------
Net Assets . . . . . . . . . . . . . . $ 490,572,331 $25,419 $ 412,578,179 $ 258,712,167
-------------- ------- -------------- --------------
-------------- ------- -------------- --------------
Shares of beneficial interest outstanding:
Class A. . . . . . . . . . . . . . . . . . 50,388,550 25,497 397,547,564 258,834,934
Class B. . . . . . . . . . . . . . . . . . 302,968,341 -- 15,251,638 --
Class D. . . . . . . . . . . . . . . . . . 137,265,887 -- -- --
NET ASSET VALUE,
All Shares - offering and redemption
price per share (Net Assets/Shares
Outstanding) . . . . . . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------------- ------- -------------- --------------
-------------- ------- -------------- --------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
The Valiant Fund
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED FEBRUARY 28, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
U.S. TREASURY U.S. TREASURY GENERAL TAX-EXEMPT
MONEY MARKET INCOME MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO* PORTFOLIO PORTFOLIO
------------- ------------- ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest (Note 1). . . . . . . . . . . . . $ 11,210,266 $ 904,379 $ 14,796,197 $ 4,480,723
------------- ---------- ------------- ------------
EXPENSES:
Investment advisory fee (Note 2) . . . . . 406,378 36,010 528,555 248,996
Distribution fee, Class B (Note 2) . . . . 347,440 -- 18,745 --
Distribution fee, Class D (Note 2) . . . . 249,435 -- -- --
Trustee fees (Note 2). . . . . . . . . . . 3,099 -- 4,727 2,174
Amortization of organization costs
(Note 1) . . . . . . . . . . . . . . . . 2,489 2,489 2,489 2,489
Expenses borne by the Investment Adviser
(Note 2) . . . . . . . . . . . . . . . . (5,588) (2,489) (7,216) (4,663)
------------- ---------- ------------- -----------
Total Net Expenses . . . . . . . . . . 1,003,253 36,010 547,300 248,996
------------- ---------- ------------- -----------
NET INVESTMENT INCOME. . . . . . . . . . . . 10,207,013 868,369 14,248,897 4,231,727
------------- ---------- ------------- -----------
REALIZED GAIN (LOSS) ON
INVESTMENTS SOLD (NOTE 1). . . . . . . . . (53,672) (78) 38,164 896
------------- ---------- ------------- -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS. . . . . . . . . $ 10,153,341 $ 868,291 $ 14,287,061 $ 4,232,623
------------- ---------- ------------- -----------
------------- ---------- ------------- -----------
</TABLE>
- ------------------------------------------------------------------
* The Portfolio operated from December 17, 1997 to February 11, 1998.
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
The Valiant Fund
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
U.S. TREASURY U.S. TREASURY
MONEY MARKET PORTFOLIO INCOME PORTFOLIO
SIX MONTHS SIX MONTHS
ENDED (UNAUDITED) YEAR ENDED ENDED(UNAUDITED) YEAR ENDED
2/28/98 8/31/97 2/28/98* 8/31/97**
----------------- ---------- ---------------- ----------
<S> <C> <C> <C> <C>
NET ASSETS AT BEGINNING OF PERIOD. . . . . $ 424,900,541 $ 247,135,913 $ 25,351 $ 25,222
------------- ------------- ------------- -------------
Increase (Decrease) in Net Assets
resulting from operations:
Net investment income. . . . . . . . . . 10,207,013 20,236,402 868,369 704,901
Net realized gain (loss) on
investments sold . . . . . . . . . . . (53,672) 15,357 (78) (7)
------------- ------------- ------------- -------------
Net increase in net assets
resulting from operations. . . . . . . 10,153,341 20,251,759 868,291 704,894
------------- ------------- ------------- -------------
Distributions to shareholders from:
Net investment income
Class A. . . . . . . . . . . . . . . . . (767,760) (3,174,468) (868,369) (704,901)
Class B. . . . . . . . . . . . . . . . . (7,034,077) (13,171,814) -- --
Class D. . . . . . . . . . . . . . . . . (2,405,176) (3,890,120) -- --
------------- ------------- ------------- -------------
Net decrease from distributions. . . . . . (10,207,013) (20,236,402) (868,369) (704,901)
------------- ------------- ------------- -------------
Share Transactions (At $1.00 per share):
Class A:
Net proceeds from sales of shares. . . . 78,096,535 174,614,603 236,425,416 245,972,311
Issued to shareholders in reinvestment
of dividends . . . . . . . . . . . . . 746 1,410 146 136
Cost of shares repurchased . . . . . . . (50,771,502) (236,817,140) (236,425,416) (245,972,311)
------------- ------------- ------------- -------------
Net Class A share transactions . . . . 27,325,779 (62,201,127) 146 136
------------- ------------- ------------- -------------
Class B:
Net proceeds from sales of shares. . . . 288,495,703 879,378,409 -- --
Cost of shares repurchased . . . . . . . (285,964,025) (705,276,725) -- --
------------- ------------- ------------- -------------
Net Class B share transactions . . . . 2,531,678 174,101,684 -- --
------------- ------------- ------------- -------------
Class D:
Net proceeds from sales of shares. . . . 147,276,447 318,106,403 -- --
Cost of shares repurchased . . . . . . . (111,408,442) (252,257,689) -- --
------------- ------------- ------------- -------------
Net Class D share transactions . . . . 35,868,005 65,848,714 -- --
------------- ------------- ------------- -------------
Net increase from share
transactions . . . . . . . . . . . 65,725,462 177,749,271 146 136
------------- ------------- ------------- -------------
Net increase in net assets . . . . 65,671,790 177,764,628 68 129
------------- ------------- ------------- -------------
NET ASSETS AT END OF PERIOD. . . . . . . . . $ 490,572,331 $ 424,900,541 $ 25,419 $ 25,351
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
- ----------------------------------------------------------------------
* The Portfolio operated from December 17, 1997 - February 11, 1998.
** The Portfolio operated from December 13, 1996 - January 30, 1997.
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
The Valiant Fund
STATEMENTS OF CHANGES IN NET ASSETS - (Continued)
<TABLE>
<CAPTION>
GENERAL MONEY TAX-EXEMPT
MARKET PORTFOLIO MONEY MARKET PORTFOLIO
SIX MONTHS SIX MONTHS
ENDED (UNAUDITED) YEAR ENDED ENDED (UNAUDITED) YEAR ENDED
2/28/98 8/31/97 2/28/98 08/31/97
----------------- ---------- ----------------- ----------
<S> <C> <C> <C> <C>
NET ASSETS AT BEGINNING OF PERIOD. . . . . $ 577,870,345 $ 342,803,442 $ 282,368,080 $ 279,867,103
--------------- --------------- ------------- -------------
Increase (Decrease) in Net Assets
resulting from operations:
Net investment income. . . . . . . . . . . 14,248,897 25,960,279 4,231,727 8,920,164
Net realized gain on investments sold. . . 38,164 15,375 896 (10,703)
--------------- --------------- ------------- -------------
Net increase in net assets
resulting from operations. . . . . . . 14,287,061 25,975,654 4,232,623 8,909,461
--------------- --------------- ------------- -------------
Distributions to shareholders from:
Net investment income
Class A. . . . . . . . . . . . . . . . . (13,859,817) (25,485,808) (4,231,727) (8,920,164)
Class B. . . . . . . . . . . . . . . . . (389,080) (474,471) -- --
--------------- --------------- ------------- -------------
Net decrease from distributions. . . . . . (14,248,897) (25,960,279 (4,231,727) (8,920,164)
--------------- --------------- ------------- -------------
Share Transactions (At $1.00 per share):
Class A:
Net proceeds from sales of shares. . . . 1,799,701,176 2,791,812,765 358,761,717 573,325,388
Issued to shareholders in reinvestment
of dividends . . . . . . . . . . . . . 3,341,800 2,914,391 457 890
Cost of shares repurchased . . . . . . . (1,974,464,142) (2,560,095,823) (382,418,983) (570,814,598)
--------------- --------------- ------------- -------------
Net Class A share transactions . . . . (171,421,166) 234,631,333 (23,656,809) 2,511,680
--------------- --------------- ------------- -------------
Class B:
Net proceeds from sales of shares. . . . 22,515,993 12,777,268 -- --
Cost of shares repurchased . . . . . . . (16,425,157) (12,357,073) -- --
--------------- --------------- ------------- -------------
Net Class B share transactions . . . . 6,090,836 420,195 -- --
--------------- --------------- ------------- -------------
Net increase (decrease) from share
transactions . . . . . . . . . . . (165,330,330) 235,051,528 (23,656,809) 2,511,680
--------------- --------------- ------------- -------------
Net increase (decrease) in
net assets . . . . . . . . . . . (165,292,166) 235,066,903 (23,655,913) 2,500,977
--------------- --------------- ------------- -------------
NET ASSETS AT END OF PERIOD. . . . . . . . . $ 412,578,179 $ 577,870,345 $ 258,712,167 $ 282,368,080
--------------- --------------- ------------- -------------
--------------- --------------- ------------- -------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
The Valiant Fund
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
U.S. TREASURY MONEY
MARKET PORTFOLIO - CLASS A
SIX MONTHS
ENDED (UNAUDITED) YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
2/28/98 8/31/97 8/31/96 8/31/95 8/31/94 (1)
------- ------- ------- ------- ----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of period . . $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- -------- --------
Income from Investment Operations:
Net investment income. . . . . . . . . 0.026 0.052 0.053 0.054 0.012
------- ------- ------- -------- --------
Less Distributions:
Dividends from net investment income . (0.026) (0.052) (0.053) (0.054) (0.012)
------- ------- ------- -------- --------
Net Asset Value, End of period . . . . . $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- -------- --------
------- ------- ------- -------- --------
Total Return (a) . . . . . . . . . . . . 2.66% 5.30% 5.45% 5.60% 1.19%
Ratios/Supplemental Data:
Net Assets, End of Period (000's). . $50,384 $23,063 $85,260 $ 30,183 $ 25
Ratios to average net assets:
Net investment income. . . . . . . . . 5.36%(b) 5.12% 5.21% 5.79% 4.06%(b)
Operating expenses . . . . . . . . . . 0.20%(b) 0.20% 0.20% 0.20% 0.20%(b)
Operating expenses before
reimbursements/waivers . . . . . . . 0.20%(b) 0.20% 0.20% 0.21% 0.26%(b)
</TABLE>
<TABLE>
<CAPTION>
U.S. TREASURY MONEY
MARKET PORTFOLIO - CLASS B
SIX MONTHS
ENDED (UNAUDITED) YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
2/28/98 8/31/97 8/31/96 8/31/95 8/31/94 (1)
------- ------- ------- ------- ----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of period . . $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- ----------
Income from Investment Operations:
Net investment income. . . . . . . . . 0.025 0.049 0.050 0.052 0.011
------- ------- ------- ------- ----------
Less Distributions:
Dividends from net investment income . (0.025) (0.049) (0.050) (0.052) (0.011)
------- ------- ------- ------- ----------
Net Asset Value, End of period . . . . . $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- ----------
------- ------- ------- ------- ----------
Total Return (a) . . . . . . . . . . . . 2.54% 5.04% 5.18% 5.34% 1.12%
Ratios/Supplemental Data:
Net Assets, End of Period (000's). . . . $302,932 $300,437 $126,327 $76,114 $ 13,355
Ratios to average net assets:
Net investment income. . . . . . . . . 5.06%(b) 4.93% 5.01% 5.41% 3.87%(b)
Operating expenses . . . . . . . . . . 0.45%(b) 0.45% 0.45% 0.45% 0.45%(b)
Operating expenses before
reimbursements/waivers . . . . . . . 0.45%(b) 0.45% 0.45% 0.46% 0.50%(b)
</TABLE>
- -------------------------------------------------------------------
(1) The Portfolio commenced Class A and Class B shares operations on May 17,
1994.
(a) Total returns for periods less than one year are not annualized, and had
the Investment Adviser and Trustees not reimbursed and waived certain
expenses, respectively, total returns would have been lower.
(b) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
The Valiant Fund
FINANCIAL HIGHLIGHTS - (Continued)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
U.S. TREASURY MONEY
MARKET PORTFOLIO - CLASS D
SIX MONTHS
ENDED (UNAUDITED) YEAR ENDED PERIOD ENDED
2/28/98 8/31/97 8/31/96 (1)
------- -------- ----------
<S> <C> <C> <C>
Net Asset Value, Beginning of period . . $ 1.000 $ 1.000 $ 1.000
------- -------- ----------
Income from Investment Operations:
Net investment income . . . . . . . 0.024 0.047 0.015
------- -------- ----------
Less Distributions:
Dividends from net investment
income . . . . . . . . . . . . . (0.024) (0.047) (0.015)
------- -------- ----------
Net Asset Value, End of period . . . . . $ 1.000 $ 1.000 $ 1.000
------- -------- ----------
------- -------- ----------
Total Return (a) . . . . . . . . . . . . 2.41% 4.78% 1.55%
Ratios/Supplemental Data:
Net Assets, End of Period (000's). . $137,256 $101,401 $35,549
Ratios to average net assets:
Net investment income . . . . . 4.82%(b) 4.69% 4.68%(b)
Operating expenses. . . . . . . 0.70%(b) 0.70% 0.70%(b)
Operating expenses before
reimbursements/waivers . . . . 0.70%(b) 0.70% 0.70%(b)
</TABLE>
<TABLE>
<CAPTION>
U.S. TREASURY MONEY
INCOME PORTFOLIO - CLASS A
SIX MONTHS
ENDED (UNAUDITED) YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
2/28/98 (2) 8/31/97 (3) 8/31/96 (4) 8/31/95 (5) 8/31/94 (6)
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of period . . $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- ---------- ---------- ---------- ----------
Income from Investment Operations:
Net investment income . . . . . . . 0.007 0.005 0.004 0.004 0.001
---------- ---------- ---------- ---------- ----------
Less Distributions:
Dividends from net investment
income . . . . . . . . . . . . . (0.007) (0.005) (0.004) (0.004) (0.001)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period . . . . . $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Total Return (a) . . . . . . . . . . . . 0.74% 0.54% 0.35% 0.39% 0.12%
Ratios/Supplemental Data:
Net Assets, End of Period (000's). . . . $ 25 $ 25 $ 25 $ 25 $ 25
Ratios to average net assets:
Net investment income . . . . . . . 4.83% (b) 4.24% 4.15% 4.47% 2.96%(b)
Operating expenses. . . . . . . . . 0.20% (b) 0.20% 0.20% 0.20% 0.20%(b)
Operating expenses before
reimbursements/waivers . . . . . 0.21% (b) 0.23% 0.35% 0.29% 0.22%(b)
</TABLE>
- --------------------------------------------------------------
(1) The Portfolio commenced Class D shares operations on May 1, 1996.
(2) The Portfolio operated from December 17, 1997 to February 11, 1998.
(3) The Portfolio operated from December 13, 1996 to January 30, 1997.
(4) The Portfolio operated from December 11, 1995 to January 10, 1996.
(5) The Portfolio operated from December 12, 1994 to January 11, 1995.
(6) The Portfolio operated from December 28, 1993 to January 12, 1994.
(a) Total returns for periods less than one year are not annualized, and had
the Investment Adviser and Trustees not reimbursed and waived certain
expenses, respectively, total returns would have been lower.
(b) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
The Valiant Fund
FINANCIAL HIGHLIGHTS - (Continued)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
GENERAL MONEY
MARKET PORTFOLIO - CLASS A
SIX MONTHS
ENDED (UNAUDITED) YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
2/28/98 8/31/97 8/31/96 8/31/95 8/31/94 (1)
------- ------- ------- ------- ----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of period . . $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income . . . . . . . 0.027 0.053 0.053 0.056 0.033
-------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment
income . . . . . . . . . . . . . (0.027) (0.053) (0.053) (0.056) (0.033)
-------- -------- -------- -------- --------
Net Asset Value, End of period . . . . . $ 1.000 $1.000 $1.000 $1.000 $1.000
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Total Return (a) . . . . . . . . . . . . 2.73% 5.40% 5.52% 5.81% 3.33%
Ratios/Supplemental Data:
Net Assets, End of Period (000's). . . . $397,332 $568,715 $334,069 $375,965 $167,016
Ratios to average net assets:
Net investment income . . . . . . . 5.40%(b) 5.33% 5.36% 5.70% 3.70%(b)
Operating expenses. . . . . . . . . 0.20%(b) 0.20% 0.20% 0.20% 0.20%(b)
Operating expenses before
reimbursements/waivers . . . . . 0.20%(b) 0.20% 0.20% 0.20% 0.21%(b)
</TABLE>
<TABLE>
<CAPTION>
GENERAL MONEY
MARKET PORTFOLIO - CLASS B
SIX MONTHS
ENDED (UNAUDITED) YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
2/28/98 8/31/97 8/31/96 8/31/95 8/31/94 (1)
------- ------- ------- ------- ----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of period . . $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income . . . . . . . 0.026 0.050 0.051 0.053 0.009
-------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment
income . . . . . . . . . . . . . (0.026) (0.050) (0.051) (0.053) (0.009)
-------- -------- -------- -------- --------
Net Asset Value, End of period . . . . . $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Total Return (a) . . . . . . . . . . . . 2.60% 5.14% 5.26% 5.54% 0.92%
Ratios/Supplemental Data:
Net Assets, End of Period (000's). . . . $15,246 $ 9,155 $ 8,734 $ 9,461 $ 9,520
Ratios to average net assets:
Net investment income . . . . . . . 5.19%(b) 5.02% 5.11% 5.33% 3.99%(b)
Operating expenses. . . . . . . . . 0.45%(b) 0.45% 0.45% 0.45% 0.45%(b)
Operating expenses before
reimbursements/waivers . . . . . 0.45%(b) 0.45% 0.45% 0.45% 0.46%(b)
</TABLE>
______________________________
(1) The Portfolio commenced Class A and Class B shares operations on September
21, 1993 and May 17, 1994, respectively.
(a) Total returns for periods less than one year are not annualized, and had
the Investment Adviser and Trustees not reimbursed and waived certain
expenses, respectively, total returns would have been lower.
(b) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
The Valiant Fund
FINANCIAL HIGHLIGHTS - (Continued)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
TAX-EXEMPT MONEY
MARKET PORTFOLIO - CLASS A
SIX MONTHS
ENDED (UNAUDITED) YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
2/28/98 8/31/97 8/31/96 8/31/95 8/31/94 (1)
------- ------- ------- ------- ----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of period . . $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income . . . . . . . 0.017 0.034 0.034 0.035 0.021
-------- -------- -------- -------- --------
Less Distributions:
Dividends from net investment
income . . . . . . . . . . . . . (0.017) (0.034) (0.034) (0.035) (0.021)
-------- -------- -------- -------- --------
Net Asset Value, End of period . . . . . $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Total Return (a) . . . . . . . . . . . . 1.70% 3.42% 3.43% 3.67% 2.11%
Ratios/Supplemental Data:
Net Assets, End of Period (000's). . . . $258,712 $282,368 $279,867 $283,654 $258,130
Ratios to average net assets:
Net investment income . . . . . . . 3.40%(b) 3.38% 3.34% 3.50% 2.38%(b)
Operating expenses. . . . . . . . . 0.20%(b) 0.20% 0.20% 0.20% 0.20%(b)
Operating expenses before
reimbursements/waivers . . . . . 0.20%(b) 0.20% 0.20% 0.20% 0.22%(b)
</TABLE>
____________________________________
(1) The Portfolio commenced operations on October 7, 1993.
(a) Total returns for periods less than one year are not annualized, and had
the Investment Adviser and Trustees not reimbursed and waived certain
expenses, respectively, total returns would have been lower.
(b) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
The Valiant Fund
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 1998 (UNAUDITED)
The Valiant Fund (the "Trust") was organized as a Massachusetts business
trust on January 29, 1993 and is registered under the Investment Company Act
of 1940, as amended (the "1940 Act"), as an open end management investment
company. The Trust offers four managed investment portfolios. The
accompanying financial statements and financial highlights are those of the
U.S. Treasury Money Market, the U.S. Treasury Income, the General Money
Market and the Tax-Exempt Money Market Portfolios (individually, a
"Portfolio", collectively, the "Portfolios"). The Trust is authorized to
offer four classes of shares: Class A, Class B, Class C and Class D. U.S.
Treasury Money Market Class A, B and D, U.S. Treasury Income Class A, General
Money Market Class A and B and Tax-Exempt Money Market Class A are currently
active.
1. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with generally
accepted accounting principles require management to make certain estimates
and assumptions that affect the amounts of assets and liabilities reported at
the date of the financial statements and the amounts of income and expenses
reported during the reporting period. Actual results could differ from those
estimates.
The following is a summary of significant accounting policies which are
consistently followed by the Trust in the preparation of its financial
statements.
PORTFOLIO VALUATIONS: Securities in the Portfolios are valued utilizing
the amortized cost method permitted in accordance with Rule 2a-7 under the
1940 Act. This method involves valuing a portfolio security initially at its
cost and thereafter assuming a constant amortization to maturity of any
discount or premium.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions
are recorded on the trade date. Net realized gains and losses on investments
sold are recorded on the identified cost basis. Interest income is recorded
on the accrual basis. Interest income consists of market discount earned
(including both original issue and market discount), less amortization of any
market premium.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: It is the policy of the
Portfolios to declare dividends daily from net investment income and to pay
such dividends monthly. Net realized capital gains, if any, are distributed
at least annually.
FEDERAL TAXES: The Trust treats each Portfolio as a separate entity for
Federal income tax purposes. Each Portfolio intends to continue to qualify
each year as a "regulated investment company" under Subchapter M of the
Internal Revenue Code of 1986, as amended. By so qualifying, a Portfolio
will not be subject to Federal income taxes to the extent that it distributes
all of its taxable or tax-exempt income, if any, for its tax period ending
August 31. In addition, by distributing during each calendar year
substantially all of its net investment income and capital gains, if any, the
Portfolios will not be subject to Federal excise tax. Therefore, no Federal
income tax provision is required.
REPURCHASE AGREEMENTS: Each Portfolio, except the U.S. Treasury Income
Portfolio, may engage in repurchase agreement transactions. Under the terms
of a typical repurchase agreement, the Portfolio takes possession of an
underlying debt obligation subject to an obligation of the seller to
repurchase, and the Portfolio to resell, the obligation at an agreed upon
price and time, thereby determining the yield during the Portfolio's holding
period. This arrangement results in a fixed rate of return that is not
subject to market fluctuations during the Portfolio's holding period. It is
the Portfolio's policy to maintain collateral that is at least equal, at all
times, to the total amount of the repurchase obligations including interest.
In the event of a counterparty default, the Portfolio has the right to use
the collateral to offset losses incurred. There is potential loss to the
Portfolio in the event the Portfolio is delayed or prevented from exercising
its rights to dispose of the collateral securities, including the risk of a
possible decline in the market value of the underlying securities during the
period while the Portfolio seeks to assert its rights. The Portfolio's
sub-adviser, David L. Babson & Co. Inc., acting under the supervision of the
Trust's Board of Trustees, reviews the value of collateral and the
creditworthiness of those banks and dealers with which the Portfolio enters
into repurchase agreements to evaluate potential risks.
22
<PAGE>
The Valiant Fund
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
FEBRUARY 28, 1998 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)
EXPENSES AND ALLOCATIONS: Expenses directly attributable to a Portfolio
are charged to the Portfolio, while expenses, which are attributable to more
than one Portfolio of the Trust, are allocated among the respective
Portfolios. Each share class bears its pro-rata portion of expenses
attributable to its series, except that each class separately bears its own
distribution fees.
Income, Portfolio level expenses, and realized and unrealized gains and
losses are allocated to each class of shares on a daily basis based on each
class's portion of net assets.
ORGANIZATION COSTS: The Trust bears all costs in connection with its
organization, including the fees and expenses of registering and qualifying
its shares for distribution under Federal and state securities laws. All
such costs are being amortized using the straight line method over a period
of five years from commencement of each Portfolio's operations.
2. INVESTMENT ADVISORY, ADMINISTRATION, DISTRIBUTION AND OTHER FEES
Integrity Management & Research, Inc. (the "Investment Adviser" or the
"Manager"), a wholly-owned subsidiary of Integrity Investments, Inc., serves
as the Investment Adviser to the Trust. State Street Bank & Trust Company
serves as the Trust's administrator, custodian and transfer agent. Integrity
Investments, Inc. (the "Distributor") acts as exclusive distributor of the
Trust's shares.
The Trust pays the Investment Adviser a fee, computed daily and paid
monthly, at the annual rate of 0.20% of the average daily net assets of the
Trust. Under its Management Agreement with the Trust, the Manager performs
certain administrative and management services for the Trust and pays the
compensation, if any, of officers and Trustees who are affiliated with the
Manager or the Sub-Adviser and pays all the Portfolio expenses with the
following exceptions: the fees and expenses of those Trustees who are not
"interested persons" (as defined in the Investment Company Act of 1940) of
the Trust; interest on borrowings; taxes; expenses incurred by Class B, Class
C and Class D shares pursuant to the Distribution and Shareholder Servicing
Plans; and such extraordinary non-recurring expenses as may arise. From time
to time the Investment Adviser may voluntarily waive all or a portion of the
fees payable to it by a Portfolio. As such, the Investment Adviser has
agreed to reimburse the Portfolios for expenses exceeding 0.20% of average
daily net assets for Class A shares, 0.45% of the average daily net assets
for Class B shares, 0.60% of average daily net assets for Class C shares and
0.70% of average daily net assets for Class D shares. The expense
limitations are voluntary and were in effect through February 28, 1998. The
expense limitations may be removed at any time thereafter with 90 days' prior
notice to existing shareholders.
For the period ended February 28, 1998 the Investment Adviser reimbursed
the Trust as follows:
PORTFOLIO REIMBURSEMENT
- --------- -------------
U.S. Treasury Money Market $5,588
U.S. Treasury Income 2,489
General Money Market 7,216
Tax-Exempt Money Market 4,663
The Investment Adviser has entered into an investment sub-advisory
agreement with David L. Babson & Co., Inc. ("Babson") pursuant to which the
Investment Adviser pays fees to Babson, computed daily and paid monthly, at
the annual rate of 0.10% of the first $500 million of the aggregate average
daily net assets of the Portfolios and 0.05% of average daily net assets in
excess thereof. Fees related to these services are borne directly by the
Investment Adviser.
23
<PAGE>
The Valiant Fund
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
FEBRUARY 28, 1998 (UNAUDITED)
2. INVESTMENT ADVISORY, ADMINISTRATION, DISTRIBUTION AND OTHER FEES -
(CONTINUED)
The Trust has adopted a distribution plan for the Class A and Class B
shares, a distribution plan for the Class C shares and a distribution plan
for the Class D shares (together, the "Plans") pursuant to Rule 12b-1 of the
1940 Act. The Plans provide for payments to the Distributor of up to 0.35%
of the average net assets of the Class B shares, up to 0.50% of the average
net assets of the Class C shares and up to 0.50% of the average net assets of
the Class D shares. Payments under the Plans have been authorized at the
rate of 0.25% of each Portfolio's average daily net assets for the Class B
shares, 0.40% of each Portfolio's average daily net assets for the Class C
shares and 0.50% of each Portfolio's average daily net assets for the Class D
shares for the period ended February 28, 1998. No payments have been
authorized for the Class A shares.
Certain directors and officers of the Investment Adviser are also
Trustees and officers of the Trust.
Trustees who are not "interested persons" of the Trust receive an annual
$1,000 retainer and $1,000 per Trustee meeting attended and are entitled to
be reimbursed for out-of-pocket expenses incurred in attending such meetings.
3. SHARES OF BENEFICIAL INTEREST
The Trust's Declaration of Trust authorizes the Trustees to issue an
unlimited number of no par value shares of beneficial interest in the
Portfolios. Shareholders are entitled to one vote for each dollar (or
proportional fractional vote for each fraction of a dollar) of net asset
value per share owned. Each Portfolio votes separately with respect to
issues affecting only that Portfolio. Shareholders of a particular class
have the exclusive right to vote on matters pertaining only to that class.
Pursuant to the Declaration of Trust, the Trustees have the authority to
create additional Portfolios and to issue additional classes of shares for
each Portfolio of the Trust.
At February 28, 1998 Integrity Investments, Inc. owned 100% of the
outstanding shares of the U. S. Treasury Income Portfolio and certain
institutional shareholders were record owners of more than 10% of the total
outstanding shares of the following Portfolios:
NUMBER OF PERCENTAGE OF
NAME OF PORTFOLIO SHAREHOLDERS SHARES OWNED
- ----------------- ------------ -------------
U.S. Treasury Money Market 2 86.0%
General Money Market 1 70.1%
Tax-Exempt Money Market 1 99.6%
24
