<PAGE>
[ART APPEARS HERE]
TREASURY SECURITIES MONEY MARKET FUND
[ART APPEARS HERE]
GOVERNMENT SECURITIES FUND
[ART APPEARS HERE]
LOUISIANA TAX-FREE INCOME FUND
[ART APPEARS HERE]
BALANCED FUND
[ART APPEARS HERE]
VALUE EQUITY FUND
[ART APPEARS HERE]
GROWTH EQUITY FUND
MARCH 31, 1996
Semi Annual Report
[LOGO OF MARQUIS FUNDS APPEARS HERE]
<PAGE>
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Letter to Shareholders...................................................... 2
Statements of Net Assets.................................................... 3
Statement of Operations..................................................... 18
Statement of Changes in Net Assets.......................................... 20
Financial Highlights........................................................ 22
Notes to Financial Statements............................................... 24
</TABLE>
1
<PAGE>
Dear Shareholder:
It is our pleasure to present to you the Marquis Funds' Semi-Annual Report for
the period ended March 31, 1996. This report contains information regarding the
specific investments held in each of the Funds and the Fund's total positions.
Although stock and bond market volatility has increased significantly over the
past six months, our dedication to a disciplined investment process has
contributed to the solid progress of the Marquis Funds. As you may be aware, we
recently enhanced the investment options available to our shareholders by
launching a new Marquis Fund. The Growth Equity Fund was launched in March and
complements the other Marquis Funds by providing an additional equity style to
our shareholders.
As a result of our investment tenets: Quality, Value, and Discipline, along
with dedicated and loyal shareholders, the Marquis Funds have grown to over
$1.3 billion in assets as of March 31, 1996. We are pleased with the growth of
the Funds and the returns we have been able to provide to our shareholders. As
our Funds grow, so does our commitment to providing value and innovative
investment programs to further our commitment to Marquis shareholders.
We appreciate the trust and confidence you have placed in us by becoming a
shareholder of the Marquis Funds. Our commitment to a disciplined investment
style, which employs quality investments with an objective of providing long
term value to our shareholders, continues on a steady course. We pledge our
commitment to this discipline, and look forward to continuing to meet your
investment goals.
Respectfully,
/s/ Kevin P. Reed
Kevin P. Reed
Senior Vice President
2
<PAGE>
STATEMENT OF NET ASSETS MARQUIS FUNDS
- --------------------------------------------------------------------------------
March 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET FUND
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face
Amount (000) Value (000)
- -------------------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 57.0%
U.S. Treasury Bills
5.298%, 04/11/96 $7,000 $ 6,989
5.392%, 05/02/96 500 498
5.515%, 05/16/96 2,500 2,484
5.393%, 06/13/96 500 495
5.003%, 08/15/96 1,000 982
5.091%, 10/17/96 750 730
5.009%, 11/14/96 1,000 970
5.272%, 12/12/96 1,000 964
5.307%, 01/09/97 1,000 960
5.354%, 02/06/97 500 478
-------
TOTAL U.S. TREASURY OBLIGATIONS 15,550
(Cost $15,550,112) -------
REPURCHASE AGREEMENTS -- 43.4%
HSBC 5.400%, dated 03/29/96, matures 04/01/96,
repurchase price $1,150,500 (collateralized by U.S.
Treasury STRIPS, total par value $1,465,000, 0.000%,
11/15/99, market value: $1,178,000) 1,150
J.P. Morgan 5.430%, dated 03/29/96, matures 04/01/96,
repurchase price $5,402,000 (collateralized by U.S.
Treasury STRIPS, total par value $5,947,000, 0.000%,
08/15/97, market value: $5,509,000) 5,400
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Value (000)
- -------------------------------------------------------------------------------
<S> <C>
Lehman Brothers 5.440%, dated 03/29/96, matures 04/01/96,
repurchase price $1,151,000 (collateralized by U.S. Treasury
STRIPS, total par value $3,270,000, 0.000%-6.125%, 05/31/97-
05/15/11, market value: $1,175,000) $ 1,150
UBS Securities 5.350%, dated 03/29/96, matures 04/01/96,
repurchase price $2,988,000 (collateralized by U.S. Treasury
Note, par value $2,980,000, 6.375%, 01/15/99, market value:
$3,047,498)(1) 2,987
Wachovia 5.380%, dated 03/29/96, matures 04/01/96, repurchase
price $1,151,000 (collateralized by U.S. Treasury Note, par
value $1,155,000, 6.000%, 12/31/97, market value:
$1,175,000) 1,150
-------
TOTAL REPURCHASE AGREEMENTS
(Cost $11,836,565) 11,837
-------
TOTAL INVESTMENTS -- 100.4%
(Cost $27,386,677) 27,387
-------
OTHER ASSETS AND LIABILITIES -- (0.4%)
Other Assets and Liabilities, Net (109)
-------
NET ASSETS:
Fund Shares (unlimited authorization -- no par value) based on
27,277,625 outstanding shares of beneficial interest 27,278
-------
TOTAL NET ASSETS -- 100.0% $27,278
=======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $1.00
=======
</TABLE>
- --------------------------------------------------------------------------------
STRIPS -- Separate Trading of Registered Interest and Principal Securities
(1) Tri-party repurchase agreement
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
STATEMENT OF NET ASSETS
- ---------------------------------------------------------------------------
March 31, 1996
- ---------------------------------------
TREASURY SECURITIES MONEY MARKET FUND
- ---------------------------------------
<TABLE>
<CAPTION>
Face
Amount (000) Value (000)
- -------------------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 37.1%
U.S. Treasury Bills
5.293%, 04/04/96 $175,000 $174,924
5.003%, 08/15/96 25,000 24,546
5.253%, 10/17/96 25,000 24,305
5.399%, 10/17/96 15,000 14,574
5.075%, 11/14/96 25,000 24,237
5.048%, 12/12/96 25,000 24,146
5.307%, 01/09/97 25,000 24,008
5.360%, 02/06/97 25,000 23,902
5.117%, 03/06/97 25,000 23,856
--------
TOTAL U.S. TREASURY OBLIGATIONS 358,498
(Cost $358,498,143) --------
REPURCHASE AGREEMENTS -- 63.2%
Deutsche Bank 5.400%, dated 03/29/96, matures
04/01/96, repurchase price $29,925,000
(collateralized by various U.S. Treasury
Obligations, total par value $28,589,000, 0.000%-
13.875%, 06/06/96-05/15/11, market value:
$30,510,000)(1) 29,911
HSBC 5.400%, dated 03/29/96, matures 04/01/96,
repurchase price $40,018,000 (collateralized by U.S.
Treasury STRIPS, total par value $45,295,000,
0.000%, 11/15/96-08/15/98, market value:
$40,852,000) 40,000
J.P. Morgan 5.430%, dated 03/29/96, matures 04/01/96,
repurchase price $230,104,000 (collateralized by
U.S. Treasury Obligations, total par value
$295,058,000, 0.000%-7.250%, 11/15/96-05/15/18,
market value: $234,133,000) 230,000
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Value (000)
- -------------------------------------------------------------------------------
<S> <C>
Lehman Brothers 5.440%, dated 03/29/96, matures 04/01/96,
repurchase price $230,104,000 (collateralized by U.S. Treasury
STRIPS, total par value $1,161,885,000, 0.000%, 05/15/14-
05/15/20, market value: $235,151,110) $230,000
UBS Securities 5.350%, dated 03/29/96, matures 04/01/96,
repurchase price $40,132,000 (collateralized by various U.S.
Treasury Notes, total par value $39,937,000, 5.000%-8.875%,
01/15/99-02/15/99, market value: $40,919,000)(1) 40,115
Wachovia 5.380%, dated 03/29/96, matures 04/01/96, repurchase
price $40,018,000 (collateralized by U.S. Treasury Note, par
value $40,110,000, 6.000%, 12/31/97, market value:
$40,811,000) 40,000
--------
TOTAL REPURCHASE AGREEMENTS (Cost $610,026,194) 610,026
--------
TOTAL INVESTMENTS -- 100.3% (Cost $968,524,337) 968,524
--------
OTHER ASSETS AND LIABILITIES -- (0.3%)
Other Assets and Liabilities, Net (3,293)
--------
NET ASSETS:
Fund Shares of Trust Class (unlimited authorization -- no par
value) based on 616,329,746 outstanding shares of
beneficial interest 616,330
Fund Shares of Retail Class (unlimited authorization -- no par
value) based on 348,864,155 outstanding shares of
beneficial interest 348,864
Accumulated net realized gain on investments 37
--------
TOTAL NET ASSETS -- 100.0% $965,231
========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
TRUST CLASS $1.00
========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
RETAIL CLASS $1.00
========
</TABLE>
- --------------------------------------------------------------------------------
STRIPS -- Separate Trading of Registered Interest and Principal Securities
(1) Tri-party repurchase agreement
The accompanying notes are an integral part of the financial statements
4
<PAGE>
MARQUIS FUNDS
- --------------------------------------------------------------------------------
(Unaudited)
- --------------------------------------------------------------------------------
GOVERNMENT SECURITIES FUND
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market
Amount (000) Value (000)
- ----------------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 41.9%
Treasury LINCS
6.000%, 08/15/09 $ 2,500 $ 2,322
U.S. Treasury Bonds
9.375%, 02/15/06 1,000 1,215
7.125%, 02/15/23 2,500 2,576
U.S. Treasury Notes
7.375%, 05/15/96 1,500 1,504
6.125%, 07/31/96 1,500 1,504
7.250%, 08/31/96 2,700 2,720
8.500%, 04/15/97 2,750 2,831
6.500%, 04/30/97 1,450 1,464
6.875%, 04/30/97 6,350 6,437
8.500%, 07/15/97 1,500 1,553
6.500%, 08/15/97 2,500 2,527
8.625%, 08/15/97 925 961
5.125%, 04/30/98 1,800 1,776
9.000%, 05/15/98 1,425 1,514
5.125%, 06/30/98 2,500 2,463
9.250%, 08/15/98 2,425 2,603
6.375%, 01/15/99 1,500 1,517
7.125%, 09/30/99 3,000 3,100
6.000%, 10/15/99 1,500 1,500
7.875%, 11/15/99 1,300 1,376
8.500%, 02/15/00 2,850 3,084
5.500%, 04/15/00 500 491
8.750%, 08/15/00 2,775 3,054
6.375%, 08/15/02 5,425 5,456
5.750%, 08/15/03 2,000 1,931
5.875%, 02/15/04 1,500 1,454
6.500%, 08/15/05 3,000 3,019
5.625%, 02/15/06 12,500 11,861
--------
TOTAL U.S. TREASURY OBLIGATIONS 73,813
(Cost $74,676,912) --------
MORTGAGE-BACKED POOLED NOTES -- 40.5%
FHLMC
7.000%, 04/01/00 46 45
6.300%, 03/15/03 135 135
6.280%, 07/15/03 250 248
7.930%, 01/20/05 250 270
9.000%, 11/01/05 1,185 1,248
9.000%, 05/01/06 1,835 1,932
7.250%, 05/01/07 76 75
9.000%, 08/01/09 882 923
9.000%, 12/01/09 1,355 1,426
6.500%, 11/15/22 5,000 4,725
</TABLE>
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market
Amount (000) Value (000)
- ----------------------------------------------------------------------------
<S> <C> <C>
FHLMC CMO
7.500%, 11/15/01 $ 4,350 $ 4,497
6.700%, 05/15/05 1,925 1,900
7.000%, 09/15/07 3,425 3,322
6.500%, 04/15/08 4,850 4,486
7.750%, 01/15/20 2,652 2,686
9.000%, 04/15/20 1,026 1,020
FNMA
7.000%, 08/12/02 250 252
5.875%, 02/02/06 5,000 4,720
7.000%, 09/01/07 3,964 3,956
6.250%, 01/25/09 1,000 938
FNMA REMIC
9.150%, 08/25/03 629 640
7.350%, 06/25/07 2,000 1,957
6.250%, 10/25/22 140 138
FNMA STRIPS
Zero Coupon, 11/22/01 2,500 2,398
GNMA
10.500%, 06/15/98 14 15
10.500%, 09/15/98 2 2
6.500%, 07/15/08 1,349 1,328
6.500%, 03/15/09 124 122
6.500%, 05/15/09 3,473 3,416
9.000%, 07/15/16 648 683
9.000%, 09/15/16 342 361
9.000%, 10/15/16 129 136
9.000%, 11/15/16 328 345
9.500%, 08/15/17 631 677
10.000%, 04/15/19 218 241
10.000%, 05/15/19 68 75
9.500%, 12/15/19 574 615
7.500%, 06/15/23 4,543 4,540
7.000%, 03/15/24 2,628 2,562
7.000%, 04/15/24 3,082 3,004
8.500%, 10/15/24 1,733 1,807
8.000%, 07/15/25 2,414 2,466
7.000%, 01/15/26 4,990 4,864
--------
TOTAL MORTGAGE-BACKED POOLED NOTES
(Cost $72,201,351) 71,196
--------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 5.5%
Federal Agricultural Mortgage
7.560%, 05/28/02 500 527
FFCB
7.510%, 02/13/98 250 257
8.650%, 10/01/99 255 275
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
STATEMENT OF NET ASSETS
- ------------------------------------------------------------------------------
March 31, 1996
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market
Amount (000) Value (000)
- ------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS (CONTINUED)
FHLB
5.370%, 11/03/00 $ 500 $ 479
7.500%, 08/10/04 500 526
FICO STRIPS
Zero coupon, 10/05/05 180 94
Zero coupon, 12/27/05 334 172
Zero coupon, 10/06/06 500 243
Zero coupon, 11/11/06 1,000 482
Zero coupon, 12/27/06 500 240
FNMA
9.550%, 12/10/97 1,075 1,142
8.500%, 03/01/98 167 172
9.150%, 04/10/98 1,175 1,248
9.550%, 03/10/99 255 278
SBA
9.350%, 07/01/98 25 25
TVA
6.250%, 08/01/99 400 399
8.375%, 10/01/99 2,900 3,104
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $9,806,398) 9,663
--------
CORPORATE OBLIGATIONS -- 6.7%
Alcan Aluminum
6.375%, 09/01/97 500 502
Anheuser Busch
8.750%, 12/01/99 600 648
Associates, N.A.
7.250%, 05/15/98 650 664
Dow Capital
7.375%, 07/15/02 500 509
E.I. DuPont de Nemours
6.000%, 12/01/01 570 558
Ford Capital
9.000%, 08/15/98 1,425 1,512
Ford Motor Credit
8.000%, 12/01/96 250 254
General Foods
6.000%, 06/15/01 500 490
IBRD
8.100%, 08/06/96 500 504
International Lease Financial
7.150%, 08/03/98 500 510
ITT
7.000%, 01/15/97 500 507
</TABLE>
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market
Amount (000) Value (000)
- ------------------------------------------------------------------------------
<S> <C> <C>
J.C. Penney
10.000%, 10/15/97 $ 400 $ 423
Lehman Brothers Holdings
6.375%, 06/01/98 500 500
Merrill Lynch
6.375%, 03/30/99 500 501
Morgan Stanley Group
8.875%, 04/01/96 300 300
New England Telephone & Telegraph
6.250%, 12/15/97 700 700
Pepsico
7.625%, 12/18/98 500 518
Philip Morris
9.750%, 05/01/97 300 312
6.000%, 07/15/01 500 483
8.250%, 10/15/03 600 643
Wal-Mart Stores
8.000%, 05/01/96 400 400
Xerox Credit
10.125%, 04/15/99 400 400
--------
TOTAL CORPORATE OBLIGATIONS 11,838
(Cost $11,932,058) --------
REPURCHASE AGREEMENT -- 2.2%
UBS Securities 5.350%, dated 03/29/96, matures
04/01/96, repurchase price $3,794,828
(collateralized by various U.S. Treasury Notes,
total par value $3,845,000, 5.250%-5.625%,
10/31/97-12/31/97, market value: $3,873,000)(1) 3,793
--------
TOTAL REPURCHASE AGREEMENT 3,793
(Cost $3,793,137) --------
CASH EQUIVALENTS -- 2.3%
SEI Liquid Asset Trust
Treasury Portfolio 4,118 4,118
--------
TOTAL CASH EQUIVALENTS
(Cost $4,118,367) 4,118
--------
TOTAL INVESTMENTS -- 99.1% 174,421
(Cost $176,528,223) --------
OTHER ASSETS AND LIABILITIES -- 0.9%
Other Assets and Liabilities, Net 1,586
--------
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
MARQUIS FUNDS
- --------------------------------------------------------------------------------
(Unaudited)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Value (000)
- ------------------------------------------------------------------------------
<S> <C>
NET ASSETS:
Fund Shares of Class A (unlimited authorization -- no par value)
based
on 17,938,462 outstanding shares of
beneficial interest $178,560
Fund Shares of Class B (unlimited authorization -- no par value)
based
on 38,227 outstanding shares of
beneficial interest 379
Accumulated net realized loss on investments (825)
Net unrealized depreciation on investments (2,107)
--------
TOTAL NET ASSETS -- 100.0% $176,007
========
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE -- CLASS A $9.79
========
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A ($9.79/96.50%) $10.15
========
NET ASSET VALUE AND OFFERING PRICE PER SHARE -- CLASS B(2) $9.84
========
</TABLE>
- --------------------------------------------------------------------------------
CMO -- Collateralized Mortgage Obligation
FFCB -- Federal Farm Credit Bank
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FICO -- Financing Corporation
FNMA -- Federal National Mortgage Association
GNMA -- Government National Mortgage Association
IBRD -- International Bank of Reconstruction & Development
LINCS -- Synthetic-Linked Coupon Securities
REMIC -- Real Estate Mortgage Investment Conduit
SBA -- Small Business Administration
STRIPS -- Separate Trading of Registered Interest and Principal of Securities
TVA -- Tennessee Valley Authority
(1) Tri-party repurchase agreement
(2) Class B has a contingent deferred sales charge. For a description of a
possible sales charge, see notes to the financial statements.
- --------------------------------------------------------------------------------
LOUISIANA TAX-FREE INCOME FUND
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market
Amount (000) Value (000)
- -------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS -- 95.4%
LOUISIANA -- 95.4%
Alexandria, Utilities RB
4.500%, 05/01/96 $ 25 $ 25
4.650%, 05/01/04 150 147
5.250%, 05/01/11 100 94
Ascension Parish, Parish-Wide School District GO
4.900%, 03/01/09 150 141
Baton Rouge, Sales & Use Tax RB
6.000%, 08/01/08 200 206
Bossier City, Utility RB
4.800%, 10/01/05 500 484
Caddo Parish, Refunding GO
5.000%, 02/01/05 350 350
East Baton Rouge Parish, Sales & Use Tax RB (FGIC)
4.650%, 02/01/04 400 389
4.800%, 02/01/06 650 624
4.800%, 02/01/09 340 315
East Baton Rouge, Mortgage Financing Authority,
Single Family Mortgage RB Ser B
4.350%, 10/01/00 85 82
5.300%, 10/01/14 95 85
Energy & Power Authority RB, Rodemacher Unit #2
6.000%, 01/01/13 500 503
Ernest N. Morial Exhibition Hall, Special Tax RB
4.700%, 07/15/05 115 112
4.900%, 07/15/07 515 500
Greater New Orleans Expressway, Louisiana Expressway
RB
4.800%, 11/01/97 25 25
Gretna, Refunding Sales Tax RB (AMBAC)
5.200%, 06/01/06 225 227
Iberville Parish, School District #5 GO
5.750%, 10/01/03 250 262
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
March 31, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market
Amount (000) Value (000)
- -------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
Jefferson Parish, Ad Valorem Property Tax Ser A GO
(FGIC)
5.250%, 09/01/05 $250 $ 256
Jefferson Parish, Hospital Services District #1 RB
(FGIC)
5.100%, 01/01/05 300 297
5.300%, 01/01/07 100 99
Jefferson Parish, School District Sales & Use Tax RB
5.000%, 02/01/08 130 125
6.250%, 02/01/08 300 315
Kenner, Sales Tax RB (FGIC)
5.750%, 06/01/06 100 104
Lafayette, Public Improvement Sales Tax RB (FGIC)
4.900%, 03/01/03 505 507
4.625%, 05/01/05 300 288
5.500%, 03/01/07 200 204
Lafayette, Public Power Authority Electric RB
(AMBAC)
5.000%, 11/01/06 250 244
5.250%, 11/01/09 250 241
Lafayette, Utility RB (AMBAC)
4.100%, 11/01/99 275 270
4.700%, 11/01/04 125 121
Mandeville, Water Utility Improvements, Ad Valorem
Property Tax RB
5.150%, 02/01/10 100 95
Natchitoches Parish, School District #7 GO (FSA)
4.900%, 03/01/07 190 187
New Orleans GO
5.850%, 11/01/09 350 363
New Orleans, Home Mortgage Special Obligation
6.250%, 01/15/11 500 526
Orleans Parish, Public School Capital Refinancing
5.000%, 12/01/05 250 251
</TABLE>
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market
Amount (000) Value (000)
- -----------------------------------------------------------------------------
<S> <C> <C>
Orleans Parish, School Board GO (FGIC)
5.300%, 09/01/10 $250 $ 244
Public Facilities Authority, Alton Ochsner Medical
Foundation RB Ser A (MBIA)
6.000%, 05/15/01 100 106
Public Facilities Authority, Alton Ochsner Medical
Foundation RB Ser B (MBIA)
6.000%, 05/15/17 100 100
Public Facilities Authority, Department of Public
Safety RB
4.900%, 08/01/04 500 494
Public Facilities Authority, Jefferson Parish East
Bank Project RB (FGIC)
4.850%, 08/01/06 250 243
Public Facilities Authority, Local Government
Refunding Program RB Ser A
5.100%, 03/01/01 250 254
Public Facilities Authority, Our Lady of Lake
Regional Center RB
5.900%, 12/01/06 390 398
Public Facilities Authority, Special Insurance
Assessment (FSA)
4.400%, 10/01/00 120 119
Saint James Parish, Unlimited Ad Valorem Property
Tax GO
4.800%, 03/01/05 85 83
Saint James Parish, Unlimited Ad Valorem Property
Tax GO
5.200%, 03/01/08 75 73
Saint Tammany Parish, School Board Sales & Use Tax
RB (FGIC)
5.750%, 04/01/03 250 261
5.750%, 04/01/06 250 259
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
MARQUIS FUNDS
- --------------------------------------------------------------------------------
(Unaudited)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market
Amount (000) Value (000)
- ------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
Saint Tammany Parish, School District #12 GO (FGIC)
6.500%, 03/01/05 $200 $ 213
Shreveport, Public Improvements Ad Valorem Property
Tax RB
4.750%, 12/01/09 200 185
Shreveport, Unlimited Refinancing GO (AMBAC)
5.150%, 02/01/09 265 259
Slidell, Sales & Use Tax RB, Public Improvement Ser
B
5.200%, 10/01/05 100 101
5.400%, 10/01/07 200 201
Slidell, Unlimited GO
4.900%, 03/01/09 200 191
State Refunding GO, Ad Valorem Property Tax (MBIA)
6.250%, 08/01/99 250 262
State Refunding GO, Ser A
6.600%, 08/01/97 200 206
State Refunding GO, Ser A (MBIA)
4.750%, 08/01/99 500 506
5.100%, 08/01/01 250 256
5.300%, 08/01/04 250 257
5.375%, 08/01/05 400 412
5.600%, 05/15/07 250 259
5.700%, 05/15/08 250 259
State Refunding GO, Ser B (MBIA)
5.600%, 08/01/07 250 259
5.600%, 08/01/08 250 258
State University, Agricultural & Mechanical College
RB (FGIC)
5.400%, 07/01/05 150 152
5.500%, 07/01/06 250 253
-------
TOTAL MUNICIPAL BONDS
(Cost $16,262,016) 16,187
-------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market
Amount (000) Value (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
CASH EQUIVALENTS -- 3.6%
SEI Institutional Tax Free Portfolio $304 $ 304
SEI Tax Exempt Trust --
Tax Free Portfolio 310 310
-------
TOTAL CASH EQUIVALENTS
(Cost $614,158) 614
-------
TOTAL INVESTMENTS -- 99.0%
(Cost $16,876,174) 16,801
-------
OTHER ASSETS AND LIABILITIES -- 1.0%
Other Assets and Liabilities, Net 164
-------
NET ASSETS:
Fund Shares of Class A (unlimited
authorization -- no par value) based
on 1,656,986 outstanding shares of
beneficial interest 16,297
Fund Shares of Class B (unlimited
authorization -- no par value based
on 77,060 outstanding shares of
beneficial interest 774
Accumulated net realized loss on investments (31)
Net unrealized depreciation on investments (75)
-------
TOTAL NET ASSETS -- 100.0% $16,965
=======
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE --
CLASS A $9.78
=======
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A ($9.78/96.50%) $10.13
=======
NET ASSET VALUE AND OFFERING PRICE PER SHARE
CLASS B(1) $9.79
=======
</TABLE>
- --------------------------------------------------------------------------------
GO -- General Obligation
RB -- Revenue Bond
Ser -- Series
The following organizations have provided underlying credit support for certain
securities as defined in the Statement of Net Assets:
AMBAC -- American Municipal Bond Assurance Company
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Insurance Association
(1) Class B has a contingent deferred sales charge. For a description of a
possible redemption charge, see notes to the financial statements.
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
March 31, 1996
- --------------------------------------------------------------------------------
BALANCED FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 51.5%
AEROSPACE & DEFENSE -- 0.4%
SCI Systems* 12,200 $ 447
--------
AIRCRAFT -- 0.9%
Lockheed Martin 7,600 576
McDonnell Douglas 6,000 550
--------
1,126
--------
AIRLINES -- 0.3%
KLM Royal Dutch Air* 11,500 400
--------
APPAREL/TEXTILES -- 0.4%
V F 7,900 436
--------
AUTOMOTIVE -- 2.4%
Chrysler 11,000 685
Dana 20,850 695
Eaton 6,900 416
Fleetwood Enterprises 23,700 587
TRW 6,800 606
--------
2,989
--------
BANKS -- 6.6%
Bank of New York 15,000 773
BankAmerica 10,700 830
Barnett Banks 8,000 498
Citicorp 4,900 392
CoreStates Financial 9,000 381
First Bank System 13,300 793
First Chicago NBD 16,874 700
First Union 12,500 756
KeyCorp 20,400 788
Mellon Bank 9,150 504
National City 10,700 376
PNC Bank 17,800 547
Republic New York 5,500 327
SunTrust Banks 6,300 441
--------
8,106
--------
BUILDING & CONSTRUCTION -- 0.5%
Lennar 25,600 637
--------
CHEMICALS -- 1.8%
Dow Chemical 6,000 521
Imperial Chemical Industrie s 12,900 735
Union Carbide 19,020 944
--------
2,200
--------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMUNICATIONS EQUIPMENT --0.4%
Harris 7,000 $ 433
--------
COMPUTERS & SERVICES --1.7%
Compaq Computer* 14,000 541
IBM 5,000 556
Microsoft* 4,900 505
Seagate Technology* 8,100 443
--------
2,045
--------
CONCRETE & MINERAL PRODUCTS--0.4%
Vulcan Materials 8,500 481
--------
CONSUMER PRODUCTS --0.7%
Nike, Class B 10,100 821
--------
DRUGS -- 1.1%
Mallinckrodt Group 9,700 365
Pharmacia & Upjohn 13,340 532
Schering Plough 8,200 477
--------
1,374
--------
ELECTRICAL SERVICES --7.5%
Baltimore Gas & Electric 13,000 359
Consolidated Edison of New York 19,100 609
Duke Power 8,600 434
Edison International 23,700 406
Enova 15,600 357
Florida Progress 15,400 525
IES Industries 24,200 675
New England Electric System 17,300 661
Nipsco Industries 17,300 644
Northeast Utilities 22,100 436
Northern States Power 10,800 526
Oklahoma Gas & Electric 9,400 375
PECO Energy 23,200 618
Portland General 17,700 544
PP&L Resources 26,400 643
Southern 21,100 504
Southwestern Public Service 14,600 485
Unicom 16,000 432
--------
9,233
--------
ENTERTAINMENT -- 0.5%
King World Productions* 14,000 579
--------
FINANCIAL SERVICES --4.5%
Alex Brown 15,000 778
American Express 10,100 499
Bear Stearns 31,700 784
Beneficial 8,600 496
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
MARQUIS FUNDS
- --------------------------------------------------------------------------------
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
FINANCIAL SERVICES (CONTINUED)
FNMA 12,400 $ 395
J.P. Morgan 8,900 739
SLMA 9,600 734
Transamerica 6,500 487
Travelers 9,800 647
--------
5,559
--------
FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD -- 1.3%
Adolph Coors, Class B 22,000 393
IBP 26,400 677
Philip Morris 6,200 544
--------
1,614
--------
GAS/NATURAL GAS -- 1.1%
Mapco 5,400 302
Pacific Enterprises 18,600 481
Williams 12,200 615
--------
1,398
--------
INSURANCE -- 4.4%
AFLAC 24,750 773
AMBAC 15,800 760
Aon 11,350 587
Lincoln National 13,800 700
Ohio Casualty 11,000 396
Providian 16,800 750
Saint Paul 13,000 722
Transatlantic Holdings 11,100 758
--------
5,446
--------
MACHINERY -- 2.5%
Brunswick 28,200 649
Caterpillar 10,200 693
Crane 13,000 525
Parker-Hannifin 15,150 568
Timken 14,700 678
--------
3,113
--------
MEASURING DEVICES -- 0.5%
Johnson Controls 7,700 575
--------
MEDICAL PRODUCTS & SERVICES --0.5%
Varian Associates 11,760 587
--------
MISCELLANEOUS
TRANSPORTATION --0.6%
Harsco 10,600 702
--------
PAPER & PAPER PRODUCTS --0.3%
Tambrands 9,200 430
--------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
PETROLEUM REFINING --1.8%
Amoco 10,600 $ 766
Exxon 6,350 518
Texaco 10,260 883
--------
2,167
--------
PROFESSIONAL SERVICES --0.8%
Ogden 18,000 351
Servicemaster 21,100 683
--------
1,034
--------
RAILROADS --1.0%
Conrail 8,200 587
Norfolk Southern 7,850 668
--------
1,255
--------
RETAIL --1.6%
American Stores 19,900 657
Sears Roebuck 14,200 692
TJX 25,700 646
--------
1,995
--------
RUBBER & PLASTIC --0.8%
Premark International 11,500 617
Sonoco Products 15,120 412
--------
1,029
--------
SEMI-CONDUCTORS/INSTRUMENTS --0.3%
Texas Instruments 6,000 305
--------
STEEL & STEEL WORKS --1.6%
British Steel ADR 25,500 753
Nucor 12,500 739
Phelps Dodge 7,000 480
--------
1,972
--------
TELEPHONES &
TELECOMMUNICATION --1.5%
Ameritech 8,200 447
Century Telephone Enterprises 19,850 630
NYNEX 9,700 484
Pacific Telesis Group 10,700 296
--------
1,857
--------
TRUCKING --0.5%
Werner Enterprises 27,700 665
--------
WHOLESALE --0.3%
Avnet 7,250 350
--------
TOTAL COMMON STOCK 63,360
(Cost $55,007,484) --------
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
March 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market
Amount (000) Value (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
MORTGAGE-BACKED POOLED
NOTES -- 23.7%
FHLMC
7.000%, 04/01/00 $ 16 $ 16
9.000%, 05/01/06 150 158
9.000%, 08/01/09 479 501
6.500%, 11/15/22 1,486 1,404
FHLMC CMO
9.000%, 04/15/20 427 425
FHLMC REMIC
7.150%, 01/15/23 2,000 1,939
FNMA
8.150%, 08/12/96 100 101
5.875%, 02/02/06 5,000 4,720
7.000%, 09/01/07 1,586 1,583
FNMA CMO
7.000%, 01/25/03 2,000 1,980
FNMA REMIC
9.150%, 08/25/03 542 551
FNMA STRIPS
Zero Coupon, 11/22/01 1,500 1,439
GNMA
7.500%, 08/15/07 622 636
6.500%, 07/15/08 675 664
7.000%, 07/15/08 573 575
6.500%, 03/15/09 62 61
6.500%, 05/15/09 1,737 1,708
13.500%, 05/15/11 23 26
12.500%, 10/15/13 3 4
12.000%, 03/15/14 30 34
13.500%, 09/15/14 14 16
9.000%, 12/15/16 97 102
10.000%, 07/15/18 214 236
10.000%, 03/15/19 135 149
7.000%, 04/15/24 1,367 1,332
7.500%, 06/15/25 1,886 1,885
7.000%, 02/15/26 7,101 6,921
--------
TOTAL MORTGAGE-BACKED POOLED NOTES
(Cost $29,782,092) 29,166
--------
U.S. TREASURY OBLIGATIONS --20.0%
U.S. Treasury Bond
7.125%, 02/15/23 1,000 1,030
U.S. Treasury Notes
8.000%, 01/15/97 250 255
6.750%, 05/31/97 2,000 2,025
6.000%, 08/31/97 3,500 3,515
9.000%, 05/15/98 2,000 2,125
</TABLE>
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market
Amount (000) Value (000)
- ------------------------------------------------------------------------------
<S> <C> <C>
9.250%, 08/15/98 $2,000 $ 2,147
6.375%, 01/15/99 1,000 1,011
7.000%, 04/15/99 3,000 3,085
6.375%, 07/15/99 1,000 1,011
8.000%, 08/15/99 2,000 2,119
8.500%, 02/15/00 500 541
5.750%, 08/15/03 1,500 1,448
6.500%, 08/15/05 1,500 1,509
5.625%, 02/15/06 3,000 2,846
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $25,062,341) 24,667
--------
REPURCHASE AGREEMENT --2.6%
UBS Securities 5.350%, dated 03/29/96, matures
04/01/96, repurchase price $3,218,008
(collateralized by various U.S. Treasury Notes,
total par value $3,106,000, 6.000%-7.125%,
09/30/99-10/15/99, market value: $3,284,000)(1) 3,217
--------
TOTAL REPURCHASE AGREEMENT
(Cost $3,216,574) 3,217
--------
CASH EQUIVALENTS --1.7%
SEI Liquid Asset Trust Treasury Portfolio 2,128 2,128
--------
TOTAL CASH EQUIVALENTS
(Cost $2,128,458) 2,128
--------
TOTAL INVESTMENTS --99.5%
(Cost $115,196,949) 122,538
--------
OTHER ASSETS AND LIABILITIES --0.5%
Other Assets and Liabilities, Net 597
--------
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
MARQUIS FUNDS
- --------------------------------------------------------------------------------
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Value (000)
- -----------------------------------------------------------------------------
<S> <C>
NET ASSETS:
Fund Shares of Class A (unlimited authorization -- no par value)
based on 10,874,973 outstanding shares of beneficial interest $112,161
Fund Shares of Class B (unlimited authorization -- no par value)
based on 145,521 outstanding shares of beneficial interest 1,505
Accumulated net realized gain on investments 2,128
Net unrealized appreciation on investments 7,341
--------
TOTAL NET ASSETS --100.0% $123,135
========
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE -- CLASS A $11.17
========
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A ($11.17/96.50%) $11.58
========
NET ASSET VALUE AND OFFERING PRICE PER SHARE -- CLASS B(2) $11.23
========
</TABLE>
- --------------------------------------------------------------------------------
* Non-income producing security
ADR -- American Depositary Receipts
CMO -- Collateralized Mortgage Obligation
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
GNMA -- Government National Mortgage Association
REMIC -- Real Estate Mortgage Investment Conduit
SLMA -- Student Loan Marketing Association
STRIPS -- Separate Trading of Registered Interest and Principal of Securities
(1) Tri-party repurchase agreement
(2) Class B has a contingent deferred sales charge. For a description of a
possible redemption charge, see notes to the financial statements.
- --------------------------------------------------------------------------------
VALUE EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK --94.4%
AEROSPACE & DEFENSE --1.0%
SCI Systems* 21,800 $ 798
-------
AIRCRAFT --1.8%
Lockheed Martin 10,700 811
McDonnell Douglas 6,500 596
-------
1,407
-------
AIRLINES --1.7%
AMR* 8,900 797
KLM Royal Dutch Air* 15,000 521
-------
1,318
-------
APPAREL/TEXTILES --0.7%
V F 10,000 553
-------
AUTOMOTIVE --4.1%
Chrysler 13,400 835
Dana 14,900 497
Eaton 9,400 566
Fleetwood Enterprises 24,000 594
TRW 7,750 691
-------
3,183
-------
BANKS --13.9%
Bank of New York 14,900 767
BankAmerica 10,000 775
Barnett Banks 9,300 579
Citicorp 9,500 760
CoreStates Financial 17,400 737
First Bank System 14,400 859
First Chicago NBD 30,014 1,247
First Union 10,000 605
KeyCorp 17,000 657
Mellon Bank 11,600 639
National City 20,800 731
PNC Bank 23,000 707
Republic New York 10,800 643
SunTrust Banks 5,900 413
US Bancorp Oregon 20,500 697
-------
10,816
-------
BUILDING & CONSTRUCTION --0.6%
Lennar 20,500 510
-------
CHEMICALS --3.6%
Dow Chemical 7,300 634
Imperial Chemical Industries 10,500 599
Rohm & Haas 10,000 665
Union Carbide 18,620 924
-------
2,822
-------
COMMUNICATIONS EQUIPMENT --0.8%
Harris 10,600 656
-------
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
March 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMPUTERS & SERVICES --1.7%
Compaq Computer* 18,400 $ 711
Seagate Technology* 11,400 624
-------
1,335
-------
CONCRETE & MINERAL PRODUCTS --0.7%
Vulcan Materials 10,000 566
-------
CONSUMER PRODUCTS -- 1.3%
Nike, Class B 12,500 1,016
-------
DRUGS -- 2.5%
Mallinckrodt Group 11,400 429
Pharmacia & Upjohn 18,445 735
Schering Plough 12,800 744
-------
1,908
-------
ELECTRICAL SERVICES -- 13.7%
Baltimore Gas & Electric 25,500 704
Consolidated Edison of New York 18,900 602
Duke Power 14,900 752
Edison International 32,500 557
Enova 20,100 460
Florida Progress 13,200 450
General Public Utilities 21,000 693
IES Industries 25,000 697
New England Electric System 12,300 470
Nipsco Industries 16 900 630
Northeast Utilities 19,800 391
Northern States Power 11,900 580
Oklahoma Gas & Electric 12,600 502
Portland General 22,200 683
PP&L Resources 26,000 634
Southern 22,500 537
Southwestern Public Service 22,000 732
Unicom 20,400 551
-------
10,625
-------
ENTERTAINMENT --0.9%
King World Productions* 17,500 724
-------
FINANCIAL SERVICES --8.1%
Alex Brown 13,600 706
American Express 15,300 755
Bear Stearns 24,000 594
Beneficial 11,900 686
FNMA 24,400 777
J.P. Morgan 7,500 623
SLMA 9,800 750
Transamerica 8,300 621
Travelers 11,500 759
-------
6,271
-------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD --2.5%
Adolph Coors, Class B 30,000 $ 536
IBP 26,600 682
Philip Morris 7,900 693
-------
1,911
-------
GAS/NATURAL GAS --2.2%
Mapco 7,500 419
Pacific Enterprises 18,340 475
Williams 15,300 770
-------
1,664
-------
INSURANCE --6.3%
AFLAC 20,400 638
AMBAC 14,500 698
Aon 14,000 724
Lincoln National 11,300 573
Ohio Casualty 12,200 439
Providian 11,800 527
Saint Paul 10,000 555
Transatlantic Holdings 10,200 696
-------
4,850
-------
MACHINERY --5.0%
Brunswick 30,400 699
Caterpillar 7,100 483
Crane 20,000 807
Dover 17,500 801
Parker-Hannifin 12,000 450
Timken 13,400 618
-------
3,858
-------
MEASURING DEVICES --0.9%
Johnson Controls 9,500 709
-------
METALS & MINING --0.9%
Cyprus AMAX Minerals 24,500 692
-------
MISCELLANEOUS
TRANSPORTATION --0.9%
Harsco 11,100 735
-------
PAPER & PAPER PRODUCTS --0.5%
Tambrands 9,000 421
-------
PETROLEUM REFINING --2.5%
Amoco 10,200 737
Chevron 7,500 421
Exxon 9,300 759
-------
1,917
-------
PROFESSIONAL SERVICES --2.3%
Dun & Bradstreet 9,400 570
Ogden 25,000 488
Servicemaster 21,500 695
-------
1,753
-------
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
MARQUIS FUNDS
- --------------------------------------------------------------------------------
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Face Market
Amount (000) Value (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
RAILROADS --1.5%
Conrail 7,000 $ 501
Norfolk Southern 7,600 646
-------
1,147
-------
RETAIL --3.2%
American Stores 30,900 1,020
Sears Roebuck 12,600 614
TJX 34,000 854
-------
2,488
-------
RUBBER & PLASTIC --1.4%
Premark International 9,900 531
Sonoco Products 19,425 529
-------
1,060
-------
SEMI-CONDUCTORS/INSTRUMENTS --0.5%
Texas Instruments 7,200 366
-------
STEEL & STEEL WORKS --1.8%
British Steel ADR 25,900 764
Phelps Dodge 8,700 597
-------
1,361
-------
TELEPHONES &
TELECOMMUNICATION --3.0%
Ameritech 10,800 589
Century Telephone Enterprises 21,900 694
NYNEX 12,000 599
Pacific Telesis Group 14,800 409
-------
2,291
-------
TRUCKING --1.0%
Werner Enterprises 32,500 780
-------
WHOLESALE --0.9%
Avnet 14,000 676
-------
TOTAL COMMON STOCK
(Cost $61,577,356) 73,187
-------
INVESTMENT COMPANY --2.7%
SEI Equity Index Fund 98 2,064
-------
TOTAL INVESTMENT COMPANY
(Cost $2,009,017) 2,064
-------
REPURCHASE AGREEMENT --1.6%
UBS Securities 5.350%, dated 03/29/96, matures
04/01/96, repurchase price $1,261,807
(collateralized by U.S. Treasury Note, par
value $1,210,000, 7.125%, 09/30/99, market
value: $1,291,000)(1) 1,261
-------
TOTAL REPURCHASE AGREEMENT (Cost $1,261,245) 1,261
-------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market
Amount (000) Value (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
CASH EQUIVALENTS --1.3%
SEI Liquid Asset Trust Treasury Portfolio 1,035 $ 1,035
-------
TOTAL CASH EQUIVALENTS
(Cost $1,034,640) 1,035
-------
TOTAL INVESTMENTS --100.0%
(Cost $65,882,258) 77,547
-------
OTHER ASSETS AND LIABILITIES --(0.0%)
Other Assets and Liabilities, Net (31)
-------
NET ASSETS:
Fund Shares of Class A (unlimited
authorization --no par value) based
on 5,905,630 outstanding shares of
beneficial interest 61,170
Fund Shares of Class B (unlimited
authorization -- no par value) based
on 220,482 outstanding shares of
beneficial interest 2,513
Accumulated net realized gain on investments 2,168
Net unrealized appreciation on investments 11,665
-------
TOTAL NET ASSETS --100.0% $77,516
=======
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE -- CLASS A $12.65
=======
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A ($12.65/96.50%) $13.11
=======
NET ASSET VALUE AND OFFERING PRICE PER
SHARE -- CLASS B(2) $12.70
=======
</TABLE>
- --------------------------------------------------------------------------------
* Non-income producing security
ADR -- American Depositary Receipts
FNMA -- Federal National Mortgage Association
SLMA -- Student Loan Marketing Association
(1) Tri-party repurchase agreement
(2) Class B has a contingent deferred sales charge. For a description of a
possible sales charge, see notes to the financial statements.
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
March 31, 1996
- --------------------------------------------------------------------------------
GROWTH EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK --92.6%
APPAREL/TEXTILES --4.5%
Jones Apparel Group* 6,400 $ 311
Tommy Hilfiger* 6,000 275
-------
586
-------
BEAUTY PRODUCTS --1.8%
Colgate Palmolive 3,000 234
-------
BROADCASTING, NEWSPAPERS &
ADVERTISING --3.2%
HBO 2,600 245
Omnicom Group 3,700 167
-------
412
-------
CHEMICALS --2.9%
Hercules 2,750 171
Monsanto 1,350 207
-------
378
-------
COMMUNICATIONS EQUIPMENT --1.5%
Andrew* 5,250 201
-------
COMPUTERS & SERVICES --8.1%
Compaq Computer* 4,200 162
IBM 1,500 167
Microsoft* 1,900 196
Newbridge Networks* 3,500 197
Pitney Bowes 3,700 181
Sun Microsystems* 3,600 158
-------
1,061
-------
DRUGS --9.7%
Boston Scientific* 4,400 202
Bristol Myers Squibb 3,500 300
Eli Lilly 3,750 243
Johnson & Johnson 2,500 230
Schering Plough 5,000 290
-------
1,265
-------
FINANCIAL SERVICES --3.4%
FNMA 6,000 191
Franklin Resources 4,500 257
-------
448
-------
FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD --9.7%
Campbell Soup 3,800 231
Coca Cola 2,200 181
CPC International 4,200 291
Pepsico 5,300 335
Philip Morris 2,600 227
-------
1,265
-------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
HOTELS & LODGING --1.8%
Marriott International 5,000 $ 238
-------
HOUSEHOLD PRODUCTS --4.3%
Clorox 2,700 233
Gillette 6,300 326
-------
559
-------
MACHINERY --1.7%
Dover 4,700 215
-------
MARINE TRANSPORTATION --1.1%
Carnival, Class A 5,000 138
-------
MEASURING DEVICES --1.2%
Millipore 4,200 161
-------
MEDICAL PRODUCTS & SERVICES --6.7%
Becton Dickinson 2,400 197
Cardinal Health 2,700 173
Dentsply International 4,200 169
St Jude Medical 4,000 149
Varian Associates 3,800 190
-------
878
-------
MISCELLANEOUS BUSINESS SERVICES --4.4%
Cabletron Systems* 2,800 186
Computer Associates International 2,600 186
Parametric Technology* 5,100 199
-------
571
-------
MISCELLANEOUS MANUFACTURING --2.0%
Belden 9,000 266
-------
RETAIL --6.5%
Gap 4,400 244
Micro Warehouse* 4,000 166
Outback Steakhouse* 8,400 316
Wal-Mart Stores 5,000 116
-------
842
-------
RUBBER & PLASTIC --2.0%
Illinois Tool Works 4,100 265
-------
SEMI-CONDUCTORS/INSTRUMENTS --2.8%
Amphenol, Class A* 8,000 187
Applied Materials* 5,100 178
-------
365
-------
SPORTING & ATHLETIC GOODS --2.0%
Callaway Golf 9,500 254
-------
STEEL & STEEL WORKS --1.6%
Nucor 3,500 207
-------
TELEPHONES &
TELECOMMUNICATION --9.7%
AT&T 2,660 163
Bell Atlantic 4,500 278
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
MARQUIS FUNDS
- --------------------------------------------------------------------------------
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Face Market
Amount (000) Value (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
TELEPHONES &
TELECOMMUNICATION (CONTINUED)
Cincinnati Bell 5,000 $ 260
GTE 6,000 263
LCI International* 12,000 294
-------
1,258
-------
TOTAL COMMON STOCK
(Cost $11,938,554) 12,067
-------
REPURCHASE AGREEMENT --7.2%
UBS Securities 5.350%, dated 03/29/96, matures
04/01/96, repurchase price $946,642 (collateralized
by U.S. Treasury Note, par value $210,000, 5.125%,
02/28/98, and FHLMC STRIPS, par value $4,000,000,
0.000%, 11/29/19, market value: $968,050)(1) 946
-------
TOTAL REPURCHASE AGREEMENT
(Cost $946,221) 946
-------
CASH EQUIVALENTS --0.1%
SEI Liquid Asset Trust
Treasury Portfolio $10 10
-------
TOTAL CASH EQUIVALENTS
(Cost $10,015) 10
-------
TOTAL INVESTMENTS --99.9%
(Cost $12,894,790) 13,023
-------
OTHER ASSETS AND LIABILITIES --0.1%
Other Assets and Liabilities, Net 8
-------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Value (000)
- ----------------------------------------------------------------------------
<S> <C>
NET ASSETS:
Fund Shares of Class A (unlimited
authorization --no par value) based
on 1,177,468 outstanding shares of beneficial interest $12,905
Accumulated net realized loss on investments (2)
Net unrealized appreciation on investments 128
-------
TOTAL NET ASSETS --100.0% $13,031
=======
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE --CLASS A $11.07
=======
MAXIMUM OFFERING PRICE PER SHARE --CLASS A ($11.07/96.50%) $11.47
=======
</TABLE>
- --------------------------------------------------------------------------------
* Non-income producing security
FHLMC--Federal Home Loan Mortgage Corporation
STRIPS--Separate Trading of Registered Interest and Principal of Securities
(1) Tri-party repurchase agreement
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
STATEMENT OF OPERATIONS (000)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TREASURY
INSTITUTIONAL SECURITIES
MONEY MARKET MONEY MARKET
FUND FUND
============= ============
10/1/95 10/1/95
TO 3/31/96 TO 3/31/96
============= ============
<S> <C> <C>
INVESTMENT INCOME:
Interest income $807 $24,863
Dividend income -- --
------------- ------------
Total investment income 807 24,863
------------- ------------
EXPENSES:
Administration fees 14 858
Investment advisory fees 22 1,338
Waiver of investment advisory fees (12) (249)
Custodian 6 67
Transfer agent fees 3 36
Distribution fees(1) -- 416
Distribution fee waiver(1) -- (92)
Professional fees 2 51
Registration fees (1) 63
Trustee fees -- 9
Printing expense 1 27
Amortization of deferred organization costs -- 9
Insurance and other fees 1 21
------------- ------------
Total expenses 36 2,554
------------- ------------
Net investment income 771 22,309
------------- ------------
Net realized gain (loss) on securities sold -- 24
Change in unrealized appreciation (depreciation)
on investment securities -- --
------------- ------------
Net realized and unrealized gain (loss) on
investments -- 24
------------- ------------
Increase in net assets resulting from operations $771 $22,333
============= ============
</TABLE>
(1) All distribution fees and waivers are incurred at the Retail Class level
for Treasury Securities Money Market Fund and the Class B level for Non-
Dollar funds.
(2) Formerly the Growth and Income Fund.
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
MARQUIS FUNDS
- --------------------------------------------------------------------------------
(Unaudited)
<TABLE>
<CAPTION>
LOUISIANA
GOVERNMENT TAX-FREE VALUE GROWTH
SECURITIES INCOME BALANCED EQUITY EQUITY
FUND FUND FUND(2) FUND FUND
========== ========== ========== ========== ==========
10/1/95 10/1/95 10/1/95 10/1/95 3/1/96
TO 3/31/96 TO 3/31/96 TO 3/31/96 TO 3/31/96 TO 3/31/96
========== ========== ========== ========== ==========
<S> <C> <C> <C> <C>
$ 4,376 $349 $1,368 $ 86 $ 9
-- -- 779 1,004 16
- ---------- ---------- ---------- ---------- ----------
4,376 349 2,147 1,090 25
- ---------- ---------- ---------- ---------- ----------
136 13 94 66 2
391 24 363 253 9
(93) (12) (83) (36) (5)
11 1 7 5 --
18 15 21 20 1
1 3 5 7 --
-- -- -- -- --
8 1 6 4 --
17 2 12 4 5
1 -- 1 1 --
4 1 3 2 --
2 -- 1 1 --
3 -- 2 1 --
- ---------- ---------- ---------- ---------- ----------
499 48 432 328 12
- ---------- ---------- ---------- ---------- ----------
3,877 301 1,715 762 13
- ---------- ---------- ---------- ---------- ----------
171 3 2,666 2,552 (2)
(1,975) (104) 842 3,086 128
- ---------- ---------- ---------- ---------- ----------
(1,804) (101) 3,508 5,638 126
- ---------- ---------- ---------- ---------- ----------
$ 2,073 $200 $5,223 $6,400 $139
========== ========== ========== ========== ==========
</TABLE>
19
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL TREASURY SECURITIES GOVERNMENT
MONEY MARKET MONEY MARKET SECURITIES
FUND FUND FUND
===================== ======================= =====================
10/1/95 8/10/95 10/1/95 10/1/94 10/1/95 10/1/94
TO 3/31/96 TO 9/30/95 TO 3/31/96 TO 9/30/95 TO 3/31/96 TO 9/30/95
---------- ---------- ---------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net investment income $ 771 $ 220 $ 22,309 $ 33,602 $ 3,877 $ 5,950
Net realized gain (loss)
on securities sold -- -- 24 14 171 (381)
Net unrealized
appreciation
(depreciation) of
investment securities -- -- -- -- (1,975) 5,498
---------- ---------- ---------- ----------- ---------- ----------
Net increase in net
assets resulting from
operations 771 220 22,333 33,616 2,073 11,067
---------- ---------- ---------- ----------- ---------- ----------
DISTRIBUTIONS TO
SHAREHOLDERS:
Income distribution
Class A (1) (771) (220) (14,405) (24,123) (3,874) (5,952)
Income distribution
Class B (2) -- -- (7,904) (9,479) (7) (9)
Capital gain distribution
Class A -- -- -- -- -- --
Capital gain distribution
Class B -- -- -- -- -- --
---------- ---------- ---------- ----------- ---------- ----------
Total distribution (771) (220) (22,309) (33,602) (3,881) (5,961)
---------- ---------- ---------- ----------- ---------- ----------
SHARE TRANSACTIONS:
Class A (1):
Shares issued 45,804 44,431 588,925 1,213,421 75,134 49,864
Shares issued in lieu of
cash distribution -- -- 3 6 1,966 3,352
Shares redeemed (49,840) (13,117) (493,858) (1,095,946) (24,069) (31,472)
---------- ---------- ---------- ----------- ---------- ----------
Total Class A share
transactions (4,036) 31,314 95,070 117,481 53,031 21,744
---------- ---------- ---------- ----------- ---------- ----------
Class B (2):
Shares issued -- -- 464,030 543,926 133 188
Shares issued in lieu of
cash distribution -- -- 4.742 7,587 6 8
Shares redeemed -- -- (402,652) (355,617) (3) (107)
---------- ---------- ---------- ----------- ---------- ----------
Total Class B share
transactions -- -- 66,120 195,896 136 89
---------- ---------- ---------- ----------- ---------- ----------
Increase (decrease) in
net assets from
shareholder transactions (4,036) 31,314 161,190 313,377 53,167 21,833
---------- ---------- ---------- ----------- ---------- ----------
Total increase
(decrease) in
net assets (4,036) 31,314 161,214 313,391 51,359 26,939
NET ASSETS:
Beginning of period 31,314 -- 804,017 490,626 124,648 97,709
---------- ---------- ---------- ----------- ---------- ----------
End of period $ 27,278 $ 31,314 $ 965,231 $ 804,017 $176,007 $124,648
========== ========== ========== =========== ========== ==========
SHARES ISSUED AND
REDEEMED:
Class A (1):
Issued 45,804 44,431 588,925 1,213,421 7,557 5,196
Issued in lieu of cash
distribution -- -- 3 6 199 350
Redeemed (49,840) (13,117) (493,858) (1,095,946) (2,427) (3,303)
---------- ---------- ---------- ----------- ---------- ----------
Total Class A share
transactions (4,036) 31,314 95,070 117,481 5,329 2,243
---------- ---------- ---------- ----------- ---------- ----------
Class B (2):
Issued -- -- 464,030 543,926 13 19
Issued in lieu of cash
distribution -- -- 4,742 7,587 1 1
Redeemed -- -- (402,652) (355,617) -- (11)
---------- ---------- ---------- ----------- ---------- ----------
Total Class B share
transactions -- -- 66,120 195,896 14 9
---------- ---------- ---------- ----------- ---------- ----------
Net increase (decrease)
in share transactions (4,036) 31,314 161,190 313,377 5,343 2,252
========== ========== ========== =========== ========== ==========
</TABLE>
(1) Trust Class for Treasury Securities Money Market Fund.
(2) Retail Class for Treasury Securities Money Market Fund.
(3) Formerly the Growth and Income Fund.
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
MARQUIS FUNDS
- --------------------------------------------------------------------------------
(Unaudited)
<TABLE>
<CAPTION>
LOUISIANA VALUE GROWTH
TAX-FREE INCOME BALANCED EQUITY EQUITY
FUND FUND(3) FUND FUND
====================== ===================== ===================== ==========
10/1/95 10/1/94 10/1/95 10/1/94 10/1/95 10/1/94 3/1/96
TO 3/31/96 TO 9/30/95 TO 3/31/96 TO 9/30/95 TO 3/31/96 TO 9/30/95 TO 3/31/96
- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
$ 301 $ 427 $ 1,715 $ 2,857 $ 762 $ 1,186 $ 13
3 (2) 2,666 1,310 2,552 1,816 (2)
(104) 410 842 8,750 3,086 8,754 128
- ---------- ---------- ---------- ---------- ---------- ---------- ----------
200 835 5,223 12,917 6,400 11,756 139
- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(289) (408) (1,697) (2,834) (744) (1,173) (12)
(12) (20) (18) (28) (17) (12) --
-- -- (1,259) -- (987) -- --
-- -- (16) -- (26) -- --
- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(301) (428) (2,990) (2,862) (1,774) (1,185) (12)
- ---------- ---------- ---------- ---------- ---------- ---------- ----------
6,348 6,559 40,953 15,154 16,834 24,265 18,944
95 92 2,804 2,718 836 638 12
(1,840) (2,306) (11,532) (12,108) (6,304) (18,386) (6,052)
- ---------- ---------- ---------- ---------- ---------- ---------- ----------
4,603 4,345 32,225 5,764 11,366 6,517 12,904
- ---------- ---------- ---------- ---------- ---------- ---------- ----------
182 128 443 165 1,445 778 --
9 15 31 28 39 12 --
-- (195) (10) (46) (102) (47) --
- ---------- ---------- ---------- ---------- ---------- ---------- ----------
191 (52) 464 147 1,382 743 --
- ---------- ---------- ---------- ---------- ---------- ---------- ----------
4,794 4,293 32,689 5,911 12,748 7,260 12,904
- ---------- ---------- ---------- ---------- ---------- ---------- ----------
4,693 4,700 34,922 15,966 17,374 17,831 13,031
12,272 7,572 88,213 72,247 60,142 42,311 --
- ---------- ---------- ---------- ---------- ---------- ---------- ----------
$16,965 $12,272 $123,135 $ 88,213 $77,516 $ 60,142 $13,031
========== ========== ========== ========== ========== ========== ==========
636 683 3,636 1,532 1,368 2,398 1,722
10 10 252 268 70 61 1
(185) (240) (1,026) (1,232) (514) (1,820) (546)
- ---------- ---------- ---------- ---------- ---------- ---------- ----------
461 453 2,862 568 924 639 1,177
- ---------- ---------- ---------- ---------- ---------- ---------- ----------
18 14 39 15 117 72 --
1 2 3 3 4 1 --
-- (21) (1) (4) (8) (5) --
- ---------- ---------- ---------- ---------- ---------- ---------- ----------
19 (5) 41 14 113 68 --
- ---------- ---------- ---------- ---------- ---------- ---------- ----------
480 448 2,903 582 1,037 707 1,177
========== ========== ========== ========== ========== ========== ==========
</TABLE>
21
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED MARCH 31, 1996 (UNAUDITED) AND THE PERIODS ENDED
SEPTEMBER 30,
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
REALIZED
AND
NET ASSET UNREALIZED DISTRIBUTIONS NET ASSET
VALUE NET GAINS OR FROM NET DISTRIBUTIONS VALUE
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT FROM END OF TOTAL
OF PERIOD INCOME INVESTMENTS INCOME CAPITAL GAINS PERIOD RETURN+
--------- ---------- ----------- ------------- ------------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
INSTITUTIONAL MONEY MARKET FUND
1996 $ 1.00 $0.03 -- $(0.03) -- $ 1.00 5.47%*
1995(4) 1.00 0.01 -- (0.01) -- 1.00 5.55
TREASURY SECURITIES MONEY MARKET FUND TRUST CLASS
1996 $ 1.00 $0.03 -- $(0.03) -- $ 1.00 5.21%*
1995 1.00 0.05 -- (0.05) -- 1.00 5.33
1994 1.00 0.03 -- (0.03) -- 1.00 3.22
TREASURY SECURITIES MONEY MARKET FUND RETAIL CLASS
1996 $ 1.00 $0.02 -- $(0.02) -- $ 1.00 5.00%*
1995 1.00 0.05 -- (0.05) -- 1.00 5.16
1994(1) 1.00 0.03 -- (0.03) -- 1.00 3.15
GOVERNMENT SECURITIES FUND CLASS A
1996 $ 9.87 $0.27 $(0.08) $(0.27) -- $ 9.79 2.02%
1995 9.41 0.54 0.46 (0.54) -- 9.87 10.84
1994 10.00 0.43 (0.59) (0.43) -- 9.41 (1.66)
GOVERNMENT SECURITIES FUND CLASS B
1996 $ 9.92 $0.23 $(0.08) $(0.23) -- $ 9.84 1.54%
1995 9.46 0.46 0.47 (0.47) -- 9.92 10.10
1994(2) 10.04 0.31 (0.58) (0.31) -- 9.46 (2.84)
LOUISIANA TAX-FREE INCOME FUND CLASS A
1996 $ 9.79 $0.21 $(0.01) $(0.21) -- $ 9.78 2.14%
1995 9.38 0.42 0.41 (0.42) -- 9.79 9.01
1994 10.00 0.36 (0.62) (0.36) -- 9.38 (2.68)
LOUISIANA TAX-FREE INCOME FUND CLASS B
1996 $ 9.79 $0.17 -- $(0.17) -- $ 9.79 1.77%
1995 9.39 0.35 $ 0.40 (0.35) -- 9.79 8.21
1994(3) 9.87 0.27 (0.48) (0.27) -- 9.39 (2.58)
BALANCED FUND CLASS A
1996 $10.87 $0.18 $ 0.45 $(0.18) $(0.15) $11.17 5.86%
1995 9.59 0.37 1.28 (0.37) -- 10.87 17.58
1994 10.00 0.31 (0.41) (0.31) -- 9.59 (1.02)
BALANCED FUND CLASS B
1996 $10.93 $0.14 $ 0.45 $(0.14) $(0.15) $11.23 5.46%
1995 9.64 0.30 1.29 (0.30) -- 10.93 16.75
1994(2) 10.03 0.18 (0.39) (0.18) -- 9.64 (2.24)
VALUE EQUITY FUND CLASS A
1996 $11.81 $0.13 $ 1.02 $(0.13) $(0.18) $12.65 9.86%
1995 9.65 0.24 2.16 (0.24) -- 11.81 25.13
1994 10.00 0.18 (0.35) (0.18) -- 9.65 (1.64)
VALUE EQUITY FUND CLASS B
1996 $11.86 $0.09 $ 1.02 $(0.09) $(0.18) $12.70 9.48%
1995 9.70 0.15 2.17 (0.16) -- 11.86 24.17
1994(2) 9.95 0.08 (0.25) (0.08) -- 9.70 (1.82)
GROWTH EQUITY FUND
1996(5) $11.00 $0.01 $ 0.07 $(0.01) -- $11.07 0.73%
</TABLE>
+ Total return does not reflect the sales charge.
* Annualized.
(1) Commenced operations on October 19, 1993.
(2) Commenced operations on October 22, 1993.
(3) Commenced operations on November 22, 1993.
(4) Commenced operations on August 10, 1995.
(5) Commenced operations on March 1, 1996.
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
MARQUIS FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIO OF RATIO OF
EXPENSES NET INCOME
NET ASSETS RATIO OF RATIO OF TO AVERAGE TO AVERAGE
END OF EXPENSES NET INCOME NET ASSETS NET ASSETS PORTFOLIO AVERAGE
PERIOD TO AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER COMMISSION
(000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE RATE
- ---------- ---------- ---------- ---------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
$ 27,278 0.25%* 5.35%* 0.33%* 5.27%* -- --
31,314 0.25 5.56 0.60 5.21 -- --
$616,355 0.50%* 5.07%* 0.56%* 5.01%* -- --
521,270 0.50 5.01 0.57 4.94 -- --
403,778 0.50 3.15 0.60 3.05 -- --
$348,876 0.70%* 4.87%* 0.76%* 4.81%* -- --
282,747 0.68 5.12 0.82 4.98 -- --
86,848 0.59* 3.27* 0.83* 3.03* -- --
$175,631 0.70%* 5.45%* 0.83%* 5.32%* 19.52% --
124,404 0.70 5.63 0.84 5.49 18.33 --
97,562 0.70 4.43 0.90 4.23 37.80 --
$ 376 1.45%* 4.71%* 1.58%* 4.58%* 19.52% --
244 1.45 4.86 1.59 4.72 18.33 --
147 1.45* 3.88* 1.69* 5.64* 57.80 --
$ 16,211 0.65%* 4.33%* 1.10%* 3.88%* 3.35% --
11,705 0.65 4.51 0.95 4.21 2.31 --
6,971 0.65 4.10 1.72 3.03 30.31 --
$ 754 1.40%* 3.59%* 1.85%* 3.14%* 3.35% --
567 1.40 3.77 1.70 3.47 2.31 --
601 1.40* 3.35* 2.47* 2.28* 30.31 --
$121,500 0.87%* 3.50%* 1.04%* 3.33%* 33.58% $0.08
87,076 0.85 3.70 1.04 3.51 55.06 --
71,379 0.85 3.18 1.14 2.89 64.09 --
$ 1,635 1.62%* 2.76%* 1.79%* 2.59%* 33.58% $0.08
1,137 1.60 2.95 1.79 2.76 55.06 --
868 1.60* 2.55* 1.94* 2.21* 64.09 --
$ 74,716 0.94%* 2.24%* 1.04%* 2.14%* 55.71% $0.08
58,854 0.90 2.40 1.07 2.23 97.88 --
41,922 0.90 1.95 1.17 1.68 161.42 --
$ 2,800 1.69%* 1.52%* 1.79%* 1.42%* 55.71% $0.08
1,288 1.65 1.62 1.82 1.45 97.88 --
589 1.65* 1.30* 1.93* 1.02* 161.42 --
$ 13,031 1.00%* 1.07%* 1.17%* 0.90%* 55.71% $0.08
</TABLE>
23
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
March 31, 1996
1.ORGANIZATION
================================================================================
The Marquis Funds (the "Trust") was organized as a Massachusetts business
trust under a Declaration of Trust dated June 29, 1993. The Trust is registered
under the Investment Company Act of 1940, as amended, as an open-end management
company with eight funds: Institutional Money Market Fund, Treasury Securities
Money Market Fund, Tax Exempt Money Market Fund (the "Money Market Funds"),
Government Securities Fund, Louisiana Tax-Free Income Fund, Balanced Fund,
Value Equity Fund and Growth Equity Fund (the "Non-Dollar Funds"). The Funds'
prospectus provides a description of each Fund's investment objectives, poli-
cies and strategies. The assets of each Fund are segregated, and a sharehold-
er's interest is limited to the Fund in which shares are held. The Trust is
registered to offer the following classes of shares: Trust, Retail, and Cash
Sweep in the Treasury Securities Money Market Fund, and Class A and Class B in
the Non-Dollar Funds. The Tax Exempt Money Market Fund and the Cash Sweep Class
of the Treasury Securities Money Market Fund have not commenced operations as
of March 31, 1996.
2.SIGNIFICANT ACCOUNTING POLICIES
================================================================================
The following is a summary of the significant accounting policies followed by
the Funds.
Securities Valuation -- Investments in equity securities which are traded on a
national securities exchange (or reported on the NASDAQ national market system)
are stated at the last quoted sales price if readily available for such equity
securities on each business day; other equity securities traded in the over-
the-counter market and listed equity securities for which no sale was reported
on that date are stated at the last quoted bid price. Debt obligations exceed-
ing sixty days to maturity for which market quotations are readily available
are valued at the most recently quoted bid price. Debt obligations with sixty
days or less remaining until maturity may be valued at their amortized cost.
Under this valuation method, purchase discounts and premiums are accreted and
amortized ratably to maturity and are included in interest income. Restricted
and illiquid securities for which quotations are not readily available are val-
ued at fair value using methods determined in good faith as approved by the
Board of Trustees.
Federal Income Taxes -- It is each Fund's intention to continue to qualify as a
regulated investment company for Federal income tax purposes by complying with
the appropriate provisions of the Internal Revenue Code of 1986, as amended.
Accordingly, no provision for Federal income taxes has been made in the accom-
panying financial statements.
Security Transactions and Related Income -- Security transactions are accounted
for on the date the security is purchased or sold (trade date). Dividend income
is recognized on the ex-dividend date and interest income is recognized on the
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
24
<PAGE>
MARQUIS FUNDS
- --------------------------------------------------------------------------------
(Unaudited)
amortization of purchase discounts and premiums during the respective holding
period. Purchase discounts and premiums on securities held by the Non-Dollar
Funds are accreted and amortized to maturity using the scientific interest
method, which approximates the effective interest method.
Repurchase Agreements -- Securities pledged as collateral for repurchase agree-
ments are held by the custodian bank until the respective agreements mature.
Provisions of the repurchase agreements ensure that the market value of the
collateral, including accrued interest thereon, is sufficient in the event of
default of the counterparty. The Funds also invest in tri-party repurchase
agreements. Securities held as collateral for tri-party repurchase agreements
are maintained in a segregated account by the broker's custodian bank until ma-
turity of the repurchase agreement. If the counterparty defaults and the value
of the collateral declines or if the counterparty enters an insolvency proceed-
ing, realization of the collateral by the Funds may be delayed or limited.
Net Asset Value Per Share -- The net asset value per share of each Fund is cal-
culated on each business day. In general, it is computed by dividing the assets
of each Fund, less its liabilities, by the number of outstanding shares of the
Fund.
Classes -- Class specific expenses are borne by that class. Income, expenses,
and realized and unrealized gains/losses are allocated to the respective clas-
ses on the basis of relative daily net assets.
Other -- Distributions from net investment income are declared and paid
quarterly for the Balanced Fund, Value Equity Fund and the Growth Equity Fund.
Distributions from net investment income are declared daily and paid monthly
for the Treasury Securities Money Market Fund and Institutional Money Market
Fund. Distributions from net investment income are declared and paid monthly
for the Government Securities Fund and Louisiana Tax-Free Income Fund. Any net
realized capital gains are declared and distributed to shareholders at least
annually.
3.INVESTMENT ADVISORY, ADMINISTRATIVE, AND DISTRIBUTION AGREEMENTS
================================================================================
First National Bank of Commerce in New Orleans (the "Adviser") serves as
investment adviser to each Fund pursuant to an investment advisory agreement
(the "Advisory Agreement") with the Trust. For its services, the Adviser is
entitled to a fee, which is calculated daily and paid monthly, at an annual
rate based on the average daily net assets of each Fund as follows:
Institutional Money Market Fund -- .15%, Treasury Securities Money Market
Fund -- .30%, Government Securities Fund -- .55%, Louisiana Tax-Free Income
Fund -- .35%, Balanced Fund -- .74%, Value Equity Fund -- .74% and Growth
Equity -- .74%. The Adviser has voluntarily agreed to waive a portion of their
fee so that expenses of each Fund will not exceed certain annual expense
limitations.
The Trust and SEI Financial Management Corporation (the "Administrator") have
entered into an Administration Agreement. Under terms of the Administration
Agreement, the Administrator is entitled to
25
<PAGE>
NOTES TO FINANCIAL STATEMENTS, CONTINUED
- ---------------------------------------------------------------------------
March 31, 1996
a fee calculated daily and paid monthly at an annual rate of .10% of the aver-
age daily net assets of the Institutional Money Market Fund and .20% of the av-
erage daily net assets of the Treasury Securities Money Market Fund, Government
Securities Fund, Louisiana Tax-Free Income Fund, Balanced Fund, Value Equity
Fund and the Growth Equity Fund.
The Trust and SEI Financial Services Company (the "Distributor") have entered
into a Distribution Agreement. As provided in certain Distribution Plans
adopted under the Distribution Agreement, the Trust will pay a fee, at an an-
nual rate of .25% of the average daily net assets of the Retail class of Trea-
sury Securities Money Market Fund and .75% of the Class B shares of the Non-
Dollar Funds to the Distributor as compensation for its services. The Distribu-
tor has agreed to waive a portion of its fee from the Treasury Securities Money
Market Fund in order to maintain a competitive expense ratio.
The Class A shares of the Non-Dollar Funds are subject to a maximum sales
load of 3.50%.
There is a contingent deferred sales charge on the Class B shares of the Non-
Dollar Funds which varies depending on the number of years from time of payment
for the purchase of shares until the time of redemption of such shares (the
"holding period"). Solely for the purpose of determining the number of years
from the time of any payment for the purchase of shares, all payments during
the month are aggregated and deemed to have been made on the first day of the
month.
<TABLE>
<CAPTION>
CONTINGENT DEFERRED SALES
CHARGE AS A PERCENTAGE
YEARS SINCE OF DOLLAR AMOUNT
PURCHASE SUBJECT TO CHARGE
=========== =========================
<S> <C>
First 3.50%
Second 2.75%
Third 2.00%
Fourth 1.25%
Fifth 0.50%
Sixth None
</TABLE>
4.ORGANIZATIONAL COSTS AND TRANSACTIONS WITH AFFILIATES
================================================================================
Organizational costs have been capitalized by the Funds and are being amor-
tized over sixty months commencing with operations. In the event any of the
initial shares of the Funds are redeemed by any holder thereof during the pe-
riod that the Funds are amortizing their organizational costs, the redemption
proceeds payable to the holder thereof by the Funds will be reduced by the un-
amortized organizational
26
<PAGE>
MARQUIS FUNDS
- --------------------------------------------------------------------------------
(Unaudited)
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 redemption. These costs
include legal fees of approximately $54,278 for organizational work performed
by a law firm of which an officer and a trustee of the Trust are partners. Cer-
tain officers and trustees of the Trust who are officers of the Administrator
and the Distributor, received no compensation from the Trust.
5.INVESTMENT TRANSACTIONS
================================================================================
The cost of security purchases and the proceeds from the sale of securities,
other than short-term investments, for the six months ended March 31, 1996 were
as follows:
<TABLE>
<CAPTION>
LOUISIANA
GOVERNMENT TAX-FREE VALUE GROWTH
SECURITIES INCOME BALANCED EQUITY EQUITY
FUND FUND FUND FUND FUND
(000) (000) (000) (000) (000)
========== ========= ======== ======= =======
<S> <C> <C> <C> <C> <C>
PURCHASES:
U.S. Government $52,707(a) $ -- $24,374 $ -- $ --
Other 9,803 5,072 35,893 36,147 18,664
SALES:
U.S. Government $20,368 $ -- $ 7,258 $ -- $ --
Other 4,239 444 22,737 24,810 6,723
</TABLE>
(a) Does not include $14,758,000 of securities received in exchange for shares
of the Fund.
On March 31, 1996, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes was not materially
different from amounts reported for financial reporting purposes. The aggregate
gross unrealized appreciation and depreciation on securities at March 31, 1996,
for each Non-Dollar Fund is as follows:
<TABLE>
<CAPTION>
LOUISIANA
GOVERNMENT TAX-FREE VALUE GROWTH
SECURITIES INCOME BALANCED EQUITY EQUITY
FUND FUND FUND FUND FUND
(000) (000) (000) (000) (000)
========== ========= ======== ======= ======
<S> <C> <C> <C> <C> <C>
Aggregate Gross Unrealized Gain $ 1,013 $ 152 $ 9,295 $12,495 $ 423
Aggregate Gross Unrealized Loss (3,120) (227) (1,954) (830) (295)
------- ----- ------- ------- -----
Net Unrealized Gain (Loss) $(2,107) $ (75) $ 7,341 $11,665 $ 128
======= ===== ======= ======= =====
</TABLE>
27
<PAGE>
NOTES TO FINANCIAL STATEMENTS, CONCLUDED MARQUIS FUNDS
- --------------------------------------------------------------------------------
March 31, 1996 (Unaudited)
6.CONCENTRATION OF CREDIT RISK
================================================================================
The Institutional Money Market Fund and the Treasury Securities Money Market
Fund invest primarily in a portfolio of money market instruments maturing in
one year or less whose ratings are within the highest ratings category assigned
by a nationally recognized statistical rating agency or, if not rated, are be-
lieved to be of comparable quality. The ability of the issuers of the securi-
ties held by the Fund to meet their obligations may be affected by economic de-
velopments in a specific industry, state or region. The Government Securities
and Balanced Funds invest in debt instruments.
The Louisiana Tax-Free Income Fund is more susceptible to factors adversely
affecting issuers of Louisiana municipal securities than a comparable municipal
bond fund that does not concentrate its investments in Louisiana municipal se-
curities.
The following table presents a summary of holdings in the Government Securi-
ties and Louisiana Tax-Free Income Funds as of March 31, 1996.
<TABLE>
<CAPTION>
LOUISIANA
GOVERNMENT TAX-FREE
SECURITIES INCOME
RATING/SECURITY CATEGORY FUND FUND
======================== ========== =========
<S> <C> <C>
U.S. Government Security 88.96% --
AAA -- 85.52%
AA 1.70% --
A 4.51% 2.32%
BBB 0.29% --
Not Rated 4.54% 12.16%
</TABLE>
The above percentages are stated as a percentage of total investments. U.S.
Government Securities represent obligations issued or guaranteed by the U.S.
Government and its agencies or instrumentalities. Repurchase agreements are
collateralized by U.S. Government Securities and are included in the Not Rated
category above.
7.CAPITAL LOSS CARRYFORWARDS
================================================================================
The Funds had capital losses carryforwards at September 30, 1995, to the ex-
tent provided in the regulations for Federal Income Tax as follows:
<TABLE>
<CAPTION>
POST
CAPITAL LOSS OCTOBER 31,
CARRYFORWARD 1994
SEPTEMBER 30, 1995, DEFERRED
FUNDS EXPIRES 2003 LOSSES
===== =================== ===========
<S> <C> <C>
Government Securities Fund $679,660 $316,663
Louisiana Tax-Free Income Fund 32,125 2,083
</TABLE>
For tax purposes, the losses in the Funds can be carried forward for a maxi-
mum of eight years to offset any net realized capital gains.
28
<PAGE>
MARQUIS
High Quality, High Standards, Highly Personal
---------------------------------------------
INVESTMENT ADVISER
First National Bank of Commerce in New Orleans
210 Baronne Street
New Orleans, LA 70112
ADMINISTRATOR
SEI Financial Management Corporation
680 East Swedesford Road
Wayne, PA 19087-1658
TRANSFER AGENT
DST Systems, Inc.
210 West 10th Street
Kansas City, MO 64105
DISTRIBUTOR
SEI Financial Services Company
680 East Swedesford Road
Wayne, PA 19087-1658
LEGAL COUNSEL
Morgan Lewis & Bockius LLP
2000 One Logan Square
Philadelphia, PA 19103
INDEPENDENT PUBLIC ACCOUNTANTS
Arthur Andersen LLP
1601 Market Street
Philadelphia, PA 19103
THE MARQUIS FUNDS:
. Are NOT insured by the FDIC or any other government agency.
. Are NOT guaranteed by First Commerce Corporation, First NBC Trust
Group, Marquis Investments, Inc., or any affiliates thereof.
. Are NOT obligations of First Commerce Corporation, First NBC Trust
Group, Marquis Investments, Inc., or any affiliates thereof.
. Are NOT bank deposits.
. Involve investment risks including possible loss of principal amount
invested.
The First NBC Trust Group is a department of First National Bank of Commerce
("First NBC"), a wholly owned subsidiary of First Commerce Corporation ("FCC").
First NBC serves as investment adviser and custodian for the Marquis Funds;
remuneration may be earned for such services. The Marquis Funds are distributed
by SEI Financial Services Company, which is not affiliated with FCC, First NBC,
Marquis Investments, Inc., or any affiliates thereof.
@1996. SEI Financial Services Company MRQ-F-005-03
