SEMI
ANNUAL
REPORT
MARCH 31, 1997
[MARQUIS LOGO OMITTED]
High Quality. High Standards. Highly Personal.
<PAGE>
[BACKGROUND OMITTED]
TABLE OF CONTENTS
Letter to Shareholders 1
Statements of Net Assets 2
Statements of Operations 32
Statements of Changes in Net Assets 34
Financial Highlights 38
Notes to Financial Statements 44
FUND PORTFOLIOS TRADING SYMBOLS
MONEY MARKET FUNDS RETAIL TRUST
Institutional Money Market Fund N/A N/A
Treasury Securities Money Market Fund MQRXX MQTXX
Tax Exempt Money Market Fund MQEXX N/A
FIXED INCOME FUNDS A SHARES B SHARES
Government Securities Fund MQGAX MFGSB
Strategic Income Bond Fund MSIAX N/A
Louisiana Tax-Free Income Fund MQLAX MFLTF
BALANCED FUNDS
Balanced Fund MQIAX MFGIB
EQUITY FUNDS
Value Equity Fund MQVAX MFVEB
Growth Equity Fund MNEUX N/A
Small Cap Equity Fund N/A N/A
International Equity Fund N/A N/A
<PAGE>
[Graphic--Marquis "M" Logo]
MARCH 31, 1997
LETTER TO SHAREHOLDERS
(UNAUDITED)
DEAR SHAREHOLDER:
During the six-month period ended March 31, 1997, the Marquis Family of
Funds performed quite well, despite challenges in certain sectors of the
financial markets during the first quarter of 1997.
Through a combination of strong portfolio performance and increasing
shareholder acceptance, our collective assets under management grew by 13.5%
during the period, from roughly $1.5 billion on September 30, 1996 to over $1.7
billion on March 31, 1997.
But perhaps the most exciting development of the period was the successful
introduction of three new members of the Marquis Family of Funds. They are:
[BULLET] THE MARQUIS INTERNATIONAL EQUITY FUND: This Fund seeks long-term
capital appreciation by investing primarily in equity securities of
companies located outside the United States.
[BULLET] THE MARQUIS SMALL CAP EQUITY FUND: This Fund seeks long-term capital
appreciation by investing primarily in equity securities of companies
with market capitalizations of less than $100 million. The Small Cap
Equity Fund offers investors the opportunity to gain exposure to a
segment of the stock market that has historically provided exceptional
opportunities for long-term growth.
[BULLET] THE MARQUIS STRATEGIC INCOME BOND FUND: This Fund seeks relatively
high current income by investing primarily in mortgage-backed and
corporate bonds. Managed exclusively by the fixed income specialists
of First NBC Trust Group, the Strategic Income Bond Fund is designed
to help investors seek higher levels of income without compromising on
asset quality.
These new funds fill important niches within the Marquis Funds family. With
them, we believe our shareholders have the full range of tools they need to
pursue virtually any short-term or long-term financial goal.
Looking ahead, we are cautiously optimistic about the future of the economy
and the financial markets. The continued growth of the domestic and
international economies should further strengthen the fundamentals behind equity
and fixed income securities.
Whatever the market conditions, we will continue to apply our principles of
pursuing high quality investments, high standards of performance, and a highly
personal approach to serving each investor's needs. We thank you for your
confidence in the Marquis Funds.
Sincerely,
/S/Signature
Clifton J. Saik
Executive Vice President
First National Bank of Commerce
- --------------------------------------------------------------------------------
1
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
- --------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET FUND
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 25.4%
- ----------------------------------------------------------
U.S. Treasury Bills
4.450%, 04/03/97 $7,500 $ 7,498
5.370%, 04/03/97 500 500
5.215%, 05/29/97 500 496
5.480%, 06/26/97 1,000 987
5.110%, 07/24/97 1,000 984
5.120%, 08/21/97 2,000 1,960
5.140%, 09/18/97 2,000 1,952
5.400%, 10/16/97 2,000 1,943
5.530%, 03/05/98 1,800 1,707
U.S. Treasury Note
6.500%, 04/30/97 500 500
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $18,527) 18,527
--------
- ----------------------------------------------------------
REPURCHASE AGREEMENTS -- 74.9%
- ----------------------------------------------------------
Aubrey G. Lanston
6.250%, dated 03/31/97, matures
04/01/97, repurchase price
$3,000,521 (collateralized
by U.S. Treasury Bill, par value
$3,115,000, 0.000%, 07/24/97,
market value $3,062,000) 3,000 3,000
Deutsche Bank
6.500%, dated 03/31/97, matures
04/01/97, repurchase price
$2,829,000 (collateralized
by U.S. Treasury Note, par value
$2,897,000, 5.250%, 07/31/98,
total market value
$2,885,000) (1) 2,828 2,828
J. P. Morgan
6.250%, dated 03/31/97, matures
04/01/97, repurchase price
$16,003,000 (collateralized by
various U.S. Treasury obligations,
total par value $25,345,000,
0.000%-5.625%, 06/30/97-05/15/06,
total market value
$16,330,000) 16,000 16,000
- ----------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------
REPURCHASE AGREEMENTS -- 74.9%
- ----------------------------------------------------------
Lehman Brothers
6.400%, dated 03/31/97, matures
04/01/97,repurchase price $16,003,000
(collateralized by various U.S.
Treasury obligations, total par
value $25,945,000,
0.000%-6.125%,
08/15/98-11/15/05, total market
value $16,332,000) $16,000 $16,000
Merrill Lynch
6.330%, dated
03/31/97, matures 04/01/97,
repurchase price $2,703,000
(collateralized by U.S. Treasury
STRIPS, par value $13,185,000,
9.000%, 11/15/18, total market
value $2,757,000) (1) 2,702 2,702
Morgan Stanley
6.200%, dated
03/31/97, matures 04/01/97,
repurchase price $2,782,000
(collateralized by U.S. Treasury
Bill, par value $2,890,000,
0.000%, 06/19/97, market value
$2,856,000) (1) 2,781 2,781
Prudential Securities
6.250%, dated
03/31/97, matures 04/01/97,
repurchase price $3,001,000
(collateralized by U.S. Treasury
Note, par value $3,100,000,
6.375%, market value
$3,065,000) 3,000 3,000
Nomura Securities
6.350%, dated
03/31/97, matures 04/01/97,
repurchase price $2,700,476
(collateralized by U.S. Treasury
STRIPS, par value $13,430,000,
0.000%, 02/15/19, total market
value $2,754,000) (1) 2,700 2,700
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
2
<PAGE>
[Graphic--Marquis "M" Logo]
MARCH 31, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET FUND (CONCLUDED)
- ----------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------
REPURCHASE AGREEMENTS (CONTINUED)
- ----------------------------------------------------------
UBS Securities
6.350%, dated
03/31/97, matures 04/01/97,
repurchase price $2,746,000
(collateralized by U.S. Treasury
STRIPS, par value $3,210,000,
0.000%, 05/15/99, total market
value $2,805,000)(1) $ 2,746 $ 2,746
Wachovia
6.640%, dated 03/31/97, matures
04/01/97, repurchase price
$3,001,000 (collateralized by
U.S. Treasury Note, par value
$2,985,000, 6.500%, 04/30/97,
total market value
$3,068,000) 3,000 3,000
-------
TOTAL REPURCHASE AGREEMENTS
(Cost $54,757) 54,757
-------
TOTAL INVESTMENTS -- 100.3%
(Cost $73,284) 73,284
-------
OTHER ASSETS AND LIABILITIES,
NET -- (0.3%) (222)
-------
- ----------------------------------------------------------
NET ASSETS:
- ----------------------------------------------------------
Fund Shares (unlimited authorization --
no par value) based on 73,061,611
outstanding shares of beneficial
interest 73,062
--------
TOTAL NET ASSETS-- 100.0% $73,062
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE $1.00
========
- ----------------------------------------------------------
STRIPS--SEPARATELY TRADED REGISTERED INTEREST AND
PRINCIPAL SECURITIES
(1) TRI-PARTY REPURCHASE AGREEMENT
- --------------------------------------------------------------------------------
TREASURY SECURITIES MONEY MARKET FUND
- ----------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 23.4%
- ----------------------------------------------------------
U.S. Treasury Bills
4.800%, 04/03/97 $55,000 $ 54,985
5.040%, 04/24/97 15,000 14,952
5.350%, 05/01/97 575 572
5.050%, 05/22/97 25,000 24,821
5.060%, 05/29/97 50,000 49,593
5.110%, 07/24/97 50,000 49,192
5.530%, 03/05/98 60,000 56,888
U.S. Treasury Note
6.500%, 04/30/97 25,000 25,016
---------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $276,019) 276,019
---------
- ----------------------------------------------------------
REPURCHASE AGREEMENTS -- 76.9%
- ----------------------------------------------------------
Aubrey G. Lanston
6.250%, dated
03/31/97, matures 04/01/97,
repurchase price $50,009,000
(collateralized by various U.S.
Treasury Notes, total par value
$52,137,000, 0.000%-4.750%,
09/30/98, total market value
$51,008,000) 50,000 50,000
Deutsche Bank
6.500%, dated
03/31/97, matures 04/01/97,
repurchase price $40,547,000
(collateralized by various U.S.
Treasury obligations, total par
value $43,705,000,
0.000%-10.000%,
11/13/97-05/15/10,
total market
value $41,350,000) (1) 40,539 40,539
Lehman Brothers
6.400%, dated
03/31/97, matures 04/01/97,
repurchase price $280,050,0000
(collateralized by various U.S.
Treasury obligations, total par
value $1,295,805,000,
0.000%-6.375%, 7/31/97-2/15/20,
total market value
$290,536,000) 280,000 280,000
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
3
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
- --------------------------------------------------------------------------------
TREASURY SECURITIES MONEY MARKET FUND (CONTINUED)
- ----------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------
REPURCHASE AGREEMENTS (CONTINUED)
- ----------------------------------------------------------
Lehman Brothers
5.950%, dated 03/31/97,
matures 04/01/97, repurchase
price $10,008,000 (collateralized
by various U.S. Treasury
obligations, total par value
$21,800,003, 0.000%-11.750%,
05/15/03-11/15/14, total market
value $10,209,000) (1) $10,006 $10,006
Merrill Lynch
6.330%, dated 03/31/97,
matures 04/01/97,
repurchase price $47,046,000
(collateralized by various U.S.
Treasury obligations, total par
value $239,556,000,
7.875%-9.000%,
11/15/18-02/15/21, total market
value $47,980,000) (1) 47,038 47,038
J. P. Morgan
6.350%, dated 03/31/97, matures
04/01/97, repurchase price
$35,601,000 (collateralized
by various U.S. Treasury
obligations, total par value
$37,101,000, 6.250%,
02/28/02-08/15/23, total market
value $36,307,000) (1) 35,595 35,595
J. P. Morgan
6.250%, dated 03/31/97, matures
04/01/97, repurchase price
$250,043,402 (collateralized
by various U.S. Treasury obligations,
total par value $706,646,000,
0.000%-5.625%, 08/30/97-11/15/21,
total market value
$256,721,000) 250,000 250,000
- ----------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------
REPURCHASE AGREEMENTS (CONTINUED)
- ----------------------------------------------------------
Nomura Securities
6.350%, dated 03/31/97,
matures 04/01/97,
repurchase price $37,007,000
(collateralized by U.S. Treasury
STRIPS, par value $55,010,000,
0.000%, 11/15/02, market value
$37,741,000) (1) $37,000 $ 37,000
Prudential Securities
6.250%, dated 03/31/97,
matures 04/01/97,
repurchase price $50,009,000
(collateralized by U.S. Treasury
Note, par value $41,410,000,
11.125%, 08/15/03, market value
$51,080,000) 50,000 50,000
UBS Securities
6.350%, dated 03/31/97,
matures 04/01/97,
repurchase price $50,255,000
(collateralized by various U.S.
Treasury obligations, total par
value $165,097,000, 0.000%,
05/15/97-08/15/26, total market
value $51,254,000) (1) 50,246 50,246
Wachovia
6.640%, dated 03/31/97, matures
04/01/97, repurchase price
$55,010,000 (collateralized by
various U.S. Treasury Notes, total
par value $54,070,000, 6.500%,
04/30/97, total market value
$56,195,000) 55,000 55,000
---------
TOTAL REPURCHASE AGREEMENTS
(Cost $905,424) 905,424
---------
TOTAL INVESTMENTS -- 100.3%
(Cost $1,181,443) 1,181,443
----------
OTHER ASSETS AND LIABILITIES, NET -- (0.3%) (3,686)
----------
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
4
<PAGE>
[Graphic--Marquis "M" Logo]
MARCH 31, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
TREASURY SECURITIES MONEY MARKET FUND (CONCLUDED)
- ----------------------------------------------------------
DESCRIPTION VALUE (000)
- ----------------------------------------------------------
NET ASSETS:
- ----------------------------------------------------------
Fund Shares of Trust Class
(unlimited authorization -- no
par value) based on 649,619,417
outstanding shares of beneficial
interest $ 649,619
Fund Shares of Retail Class
(unlimited authorization -- no
par value) based on 527,809,258
outstanding shares of beneficial
interest 527,809
Fund Shares of Cash Sweep Class
(unlimited authorization -- no
par value) based on 308,851
outstanding shares of beneficial
interest 309
Accumulated net realized gain on investments 20
----------
TOTAL NET ASSETS-- 100.0% $1,177,757
==========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE-- TRUST CLASS $1.00
==========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE-- RETAIL CLASS $1.00
==========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE-- CASH SWEEP CLASS $1.00
==========
- ----------------------------------------------------------
STRIPS--SEPARATELY TRADED REGISTERED INTEREST AND
PRINCIPAL SECURITIES
(1) TRI-PARTY REPURCHASE AGREEMENT
- --------------------------------------------------------------------------------
TAX EXEMPT MONEY MARKET FUND
- ----------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------
MUNICIPAL BONDS -- 99.4%
- ----------------------------------------------------------
ALABAMA -- 1.0%
Birmingham, Alabama, University of
Alabama Health Services, VRDN,
RB (A) (B) (C)
3.950%, 12/01/26 $ 800 $ 800
--------
ARIZONA -- 1.0%
Maricopa County, Arizona Industrial
Development, RB
12.000%, 01/01/08 415 425
Pinal County, Arizona Industrial
Development Pollution Control
Revenue Newmont Project,
VRDN, RB (A) (B) (C)
3.850%, 12/01/09 400 400
--------
825
--------
ARKANSAS -- 1.2%
Little Rock Southwest Hospital,
Ser 88, VRDN, RB (A) (B) (C)
3.350%, 10/01/18 940 940
--------
CALIFORNIA -- 6.5%
California Higher Education Authority
Student Loan, RB (A)
3.950%, 06/01/01 750 750
California State, Ser 1996-1997, RAN
4.500%, 06/30/97 2,500 2,503
Los Angeles, California Department
of Airports, Ser B, RB
7.200%, 05/01/01 1,300 1,330
Ravenswood, California City School
District, TRAN
4.500%, 07/08/97 500 501
Union City, California Multi-Family
Housing - Sierra Green Apartments,
VRDN, RB (A) (B) (C)
3.600%, 10/01/07 100 100
--------
5,184
--------
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
5
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
- --------------------------------------------------------------------------------
TAX EXEMPT MONEY MARKET FUND (CONTINUED)
- ----------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------
MUNICIPAL BONDS -- 99.4%
- ----------------------------------------------------------
COLORADO -- 4.6%
Colorado Housing Finance Authority,
Cambray Park Project, VRDN,
RB (A) (B) (C)
3.550%, 05/01/15 $1,950 $ 1,950
Woodstream, Colorado
Housing Financial Authority (A)
3.550%, 06/01/05 1,710 1,710
--------
3,660
--------
DISTRICT OF COLUMBIA -- 4.3%
District of Columbia, Abraham & Laura
Lisner Project, VRDN, RB (A) (B) (C)
3.550%, 06/01/03 1,300 1,300
District of Columbia, Ser B-1, VRDN,
RB (A) (B) (C)
3.900%, 06/01/03 300 300
District of Columbia, Ser B-2, VRDN,
RB (A) (B) (C)
3.900%, 06/01/03 300 300
District of Columbia, Ser B-3, VRDN,
RB (A) (B) (C)
3.900%, 06/01/03 1,200 1,200
Washington, D.C., George Washington
University (A)
3.600%, 03/01/06 350 350
--------
3,450
--------
FLORIDA -- 9.7%
Brevard County Housing Finance
Authority, Park Village & Malobar
Lakes Project, VRDN, RB (A)
3.550%, 12/01/10 1,500 1,500
Florida Housing Finance Agency,
Lakeside South Association,
VRDN, RB (A)
3.525%, 08/01/06 1,130 1,130
- ----------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------
MUNICIPAL BONDS -- 99.4%
- ----------------------------------------------------------
Florida Housing Finance Authority,
Sarasota Beneva Place, Ser C VRDN,
RB (A) (B) (C)
3.460%, 10/01/06 $1,650 $ 1,650
Florida State Board of Education
Capital Outlay, Ser C
6.900%, 06/01/97 500 503
Jacksonville University Hospital Center
Project,VRDN, RB (A) (B) (C)
3.600%, 02/01/19 300 300
Osceola County, Florida Health Facilities
Authorization Revenue Referendum,
Lutheran Good Sam. Society, RB
3.600%, 05/01/97 250 250
Pinellas County, Florida Health Facilities
Authority Revenue Pooled Hospital
Program, VRDN, RB (A) (B) (C)
3.850%, 12/01/15 1,500 1,500
Suwannee County, Florida Advent
Christian Project (A)
3.550%, 10/01/19 975 975
--------
7,808
--------
GEORGIA -- 0.5%
DeKalb County, Wood Terrace Apartments
Project, VRDN, RB (A) (B) (C)
3.500%, 12/15/15 375 375
--------
IDAHO -- 2.6%
Nez Perce County, Idaho Pollution Control,
VRDN, RB (A) (B) (C)
3.450%, 12/01/14 1,700 1,700
University of Idaho, Student Fee
Telecommunications, RB (FSA)
4.100%, 04/01/97 400 400
--------
2,100
--------
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
6
<PAGE>
[Graphic--Marquis "M" Logo]
MARCH 31, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
TAX EXEMPT MONEY MARKET FUND (CONTINUED)
- ----------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
- ----------------------------------------------------------
ILLINOIS -- 10.5%
Chicago, Illinois Multi-Family Housing
Waveland Association Project, Ser A,
VRDN, RB (A) (B) (C)
3.450%, 11/01/10 $1,000 $ 1,000
Chicago, Illinois Multi-Family Housing
Waveland Association Project, Ser E,
VRDN, RB (A) (B) (C)
3.450%, 11/01/10 1,100 1,100
Illinois Development Financial Authority,
Ser 84, VRDN, RB (A) (B) (C)
3.570%, 12/01/09 1,300 1,300
Illinois Development Financial Authority
3.600%, 09/01/26 1,000 1,000
Illinois Health Facilities Authority,
Advocate Healthcare Network, Ser B,
VRDN (A) (B)
3.550%, 08/15/22 2,500 2,500
Illinois State Health Facility Authority,
Ser B, VRDN, RB (A) (B) (C)
3.350%, 10/01/15 200 200
Kendall and Kane Counties, Illinois
Community School Districts
Number 115, TAN
4.400%, 01/21/98 750 752
Orland Hills Mortgage Authority,
Ser 1988-A, VRDN, RB (A) (B) (C)
3.500%, 12/01/04 600 600
--------
8,452
--------
INDIANA -- 4.5%
Calumet Township of Lake County,
Indiana, Ser 1996-A, GO
4.000%, 07/15/97 1,525 1,525
Fort Wayne, Educational Development
Authority, Georgetown PL Venture,
VRDN, RB (A) (B) (C)
3.500%, 12/01/15 100 100
- ----------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------
MUNICIPAL BONDS -- 99.4%
- ----------------------------------------------------------
Indiana Residential Apartments,
Ser A, VRDN, RB (A) (B)
3.650%, 12/01/02 $2,000 $ 2,000
--------
3,625
--------
IOWA -- 1.8%
Des Moines, Iowa, Drake University
Project, Ser B, RB
6.800%, 12/01/01 425 442
6.800%, 12/01/02 450 468
6.800%, 12/01/03 485 504
--------
1,414
--------
KANSAS -- 2.0%
Shawnee County, Kansas, TAN
4.250%, 02/01/98 975 977
Topeka Multi-Family Housing Revenue,
Ser 85, VRDN, RB (A) (B)
3.400%, 01/01/09 600 600
--------
1,577
--------
KENTUCKY -- 1.6%
Covington Industrial Building, Atkins &
Pearce Inc., Ser 1995,
VRDN, RB (A) (B) (C)
3.500%, 04/01/05 500 500
Louisville, Kentucky, Industrial
Development Revenue Referendum --
Zeochem Project, VRDN,
RB (A) (B) (C)
3.550%, 09/01/01 750 750
--------
1,250
--------
LOUISIANA -- 4.0%
Calcasieu Parish, Sales Tax District,
Ser #4-A, VRDN, RB (A)
3.500%, 09/01/01 1,000 1,000
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
7
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
- --------------------------------------------------------------------------------
TAX EXEMPT MONEY MARKET FUND (CONTINUED)
- ----------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
- ----------------------------------------------------------
LOUISIANA (CONTINUED)
East Baton Rouge, Louisiana
3.850%, 10/01/26 $1,000 $ 1,000
Louisiana Stadium and Exposition
Hotel Occupancy Tax (FGIC)
4.250%, 07/01/97 685 686
New Orleans Industrial Development
Board, Spectrum Control Technology,
RB (A) (B) (C)
3.600%, 03/01/07 500 500
--------
3,186
--------
MARYLAND -- 0.8%
Maryland Health & Higher Education
Facilities Authority, Kennedy
Krieger, VRDN, RB (A) (B) (C)
3.600%, 07/01/23 600 600
--------
MICHIGAN -- 1.1%
Grand Rapids, Michigan Water Supply
Revenue Ser 1988, RB
7.875%, 01/01/18 105 110
Michigan State Job Development
Authority, Pollution Control Revenue
Mazda Motor Manufacturing,
RB (A) (B) (C)
3.550%, 10/01/08 125 125
Oakland County, Michigan Economic
Development Limited Obligation
Revenue Corners Shopping Center,
VRDN, RB (A) (B) (C)
3.650%, 04/07/97 635 635
--------
870
--------
MINNESOTA -- 3.5%
Hutchinson, Minnesota Economic
Development Authority, VRDN,
RB (A) (B) (C)
3.800%, 08/15/97 340 340
- ----------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
- ----------------------------------------------------------
MINNESOTA (CONTINUED)
Minneapolis, Minnesota, Commerce
At Centre VLG Project, Ser 1996
4.000%, 09/01/97 $ 715 $ 715
St. Paul, Minnesota Housing &
Redevelopment Authority District
Heating, Ser A, RB (A)
3.600%, 12/01/12 1,750 1,750
--------
2,805
--------
NEVADA -- 0.7%
Henderson, Public Improvement
Trust, Pueblo Verde I+II Apartment
Project, Ser 1995a/95b #1071,
VRDN, RB (A) (B) (C)
3.500%, 08/01/26 525 525
--------
NEW YORK -- 3.2%
Hempstead Town, New York Industrial
Development Agency, RB
7.375%, 12/01/05 1,500 1,530
North Hempstead, New York,
Ser A, BAN
4.000%, 01/29/98 1,000 1,000
--------
2,530
--------
NORTH CAROLINA -- 1.4%
Buford, North Carolina, Industrial
Facility, Pollution Control Revenue,
VRDN, RB (A) (B) (C)
3.500%, 12/01/00 550 550
North Carolina Medical Care Community,
Hospital Revenue Pooled Finance
Project, VRDN, RB (A) (B) (C)
3.500%, 10/01/16 600 600
--------
1,150
--------
OHIO -- 4.0%
Bellevue, Ohio, Bellevue Hospital
Project, RB (A)
3.750%, 09/01/97 380 380
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
8
<PAGE>
[Graphic--Marquis `M' Logo]
MARCH 31, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
TAX EXEMPT MONEY MARKET FUND (CONTINUED)
- ----------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
- ----------------------------------------------------------
OHIO (CONTINUED)
Columbus, Ohio, Electrical Systems
Revenue, VRDN, RB (A) (B) (C)
3.450%, 04/01/97 $1,400 $ 1,400
Cuyahoga County, Ohio, Ida Edgecomb
Metals Project, VRDN, RB (A) (B) (C)
3.400%, 09/01/09 200 200
Ohio State Building Authority State
Correctional Facilities, RB
8.400%, 04/01/97 500 500
Village of Canal Winchester, Ohio, BAN
4.500%, 08/13/97 700 701
--------
3,181
--------
OKLAHOMA -- 6.4%
Muskogee, Oklahoma, Industrial Trust
Revenue, VRDN, RB (A) (B) (C)
3.650%, 12/01/15 1,100 1,100
Oklahoma City, Industrial Development
Authority, Baptist General Convention
Refunding, Ser 89, RB (A) (B) (C)
3.600%, 03/01/09 1,270 1,270
Oklahoma City, University City Project,
Ser 85, VRDN, RB (A) (B) (C)
3.650%, 08/01/15 600 600
Tulsa City, Oklahoma, Industrial
Authority Health Care, Laureate
Psychiatric Project, VRDN, RB (A)
3.650%, 12/15/08 2,000 2,000
Yukon, Oklahoma, Municipal Authority
Sales Tax & Utility System, RB (AMBAC)
4.200%, 06/01/97 180 180
--------
5,150
--------
- ----------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
- ----------------------------------------------------------
PENNSYLVANIA -- 7.4%
Allegheny County Hospital Development
Authority, Childrens Hospital, Ser B,
VRDN, RB (MBIA) (A) (B)
3.350%, 01/01/21 $ 250 $ 250
Bucks County Industrial Development
Authority, Edgcomb Metals Project,
VRDN, RB (A) (B) (C)
3.300%, 10/01/09 200 200
Delaware County, Pennsylvania Industrial
Development Authority, Scott Paper
Company Project, Ser A, RB
3.450%, 12/01/18 500 500
Montgomery County Higher Education
& Health Facility Authority, Higher
Education & Loan, Ser 96-A, VRDN,
RB (A) (B) (C)
3.700%, 06/01/21 2,500 2,500
Philadelphia School District, TRAN
4.500%, 06/30/97 500 501
Quakertown, Pennsylvania, General
Authority, Ser A, VRDN,
RB (A) (B) (C)
3.500%, 07/01/26 2,000 2,000
--------
5,951
--------
TENNESSEE -- 2.5%
Franklin County, Tennessee, Health &
Education Facilities Board University
of South Sewanee Credit
Enhancement Project, RB (A)
3.650%, 09/01/10 360 360
Germantown, Tennessee, GO
3.800%, 01/01/98 505 505
Jefferson County Industrial
Development (A)
3.750%, 04/01/98 1,000 1,000
Maury County, Tennessee Hillview Health
Care Center Ser 86 (A)
3.650%, 06/01/04 155 155
--------
2,020
--------
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
9
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
- --------------------------------------------------------------------------------
TAX EXEMPT MONEY MARKET FUND (CONTINUED)
- ----------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
- ----------------------------------------------------------
TEXAS -- 3.0%
Corpus Christi, Texas, Texas Industrial
Development Authority Air Inventory
Project (A)
3.850%, 08/01/11 $ 130 $ 130
Harris County, Buckner Retirement
Services Project, VRDN, RB (A) (B) (C)
3.500%, 08/15/26 1,500 1,500
Keller, Texas Independent School
District, GO, (C)
8.250%, 08/01/97 500 507
San Antonio, Texas, GO
7.500%, 05/01/12 300 305
--------
2,442
--------
UTAH -- 1.4%
Salt Lake City, Industrial Development
Authority, Park View Plaza Project,
VRDN, RB (A) (B) (C)
3.510%, 12/01/14 300 300
West Valley, Utah, Industrial Development
Authority, Johnson Matthey Project,
RB (A)
3.950%, 11/01/11 800 800
--------
1,100
--------
VIRGINIA -- 2.1%
Fairfax County, Virginia, Ser A, GO
7.000%, 04/01/06 500 510
Fairfax County,Virginia, Industrial
Development Authority, Fairfax
Hospital, Ser A (A)
3.500%, 10/01/25 1,200 1,200
--------
1,710
--------
- ----------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
- ----------------------------------------------------------
WEST VIRGINIA -- 0.4%
Mingo County, Board of Education,
GO (AMBAC)
9.700%, 10/01/97 $ 340 $ 350
--------
WISCONSIN -- 4.5%
Arcadia, Wisconsin School District, BAN
4.500%, 06/01/97 1,000 1,001
Indian Hill,Wisconsin, Maple Dale
School District, TRAN
4.190%, 08/20/97 600 600
Kettle, Wisconsin, Moraine School
District, TRAN
4.010%, 08/22/97 500 500
Tomah Area School District,
Wisconsin TRAN
4.190%, 09/17/97 500 500
West Bend City, Wisconsin School
District #1, TRAN
3.970%, 09/19/97 1,000 1,000
--------
3,601
--------
WYOMING -- 1.2%
Sweetwater County Wyoming, Pollution
Control Revenue Pacificorp Project,
VRDN, RB (AMBAC) (A) (B) (C)
3.850%, 11/01/24 1,000 1,000
--------
TOTAL MUNICIPAL BONDS
(Cost $79,631) 79,631
--------
TOTAL INVESTMENTS -- 99.4%
(Cost $79,631) 79,631
--------
OTHER ASSETS AND LIABILITIES, NET-- 0.6% 516
--------
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
10
<PAGE>
[Graphic--Marquis "M" Logo]
MARCH 31, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
TAX EXEMPT MONEY MARKET FUND (CONCLUDED)
- ----------------------------------------------------------
DESCRIPTION VALUE (000)
- ----------------------------------------------------------
NET ASSETS:
- ----------------------------------------------------------
Fund Shares (unlimited authorization -- no
par value) based on 80,143,829
outstanding shares of beneficial
interest $80,144
Undistributed net investment income 3
--------
TOTAL NET ASSETS-- 100.0% $80,147
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE $1.00
========
- ----------------------------------------------------------
(A) VARIABLE RATE INSTRUMENT. THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON MARCH 31, 1997.
(B) PUT AND DEMAND FEATURES EXIST REQUIRING THE ISSUER TO REPURCHASE THE
INSTRUMENT PRIOR TO MATURITY. THE MATURITY SHOWN IS THE LESSER OF THE PUT
DATE OR THE MATURITY DATE.
(C) SECURITIES ARE HELD IN CONNECTION WITH A LETTER OF CREDIT OR OTHER CREDIT
SUPPORT.
BAN--BOND ANTICIPATION NOTE
GO--GENERAL OBLIGATION
RAN--REVENUE ANTICIPATION NOTE
RB--REVENUE BOND
SER--SERIES
TAN--TAX ANTICIPATION NOTE
TRAN--TAX AND REVENUE ANTICIPATION NOTE
VRDN--VARIABLE RATE DEMAND NOTE 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 INVESTORS ASSURANCE
- --------------------------------------------------------------------------------
GOVERNMENT SECURITIES FUND
- ----------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 9.9%
- ----------------------------------------------------------
FFCB
7.510%, 02/13/98 $ 250 $ 253
8.650%, 10/01/99 255 267
FHLB
5.370%, 11/03/00 500 475
7.500%, 08/10/04 500 513
FHLMC
6.300%, 03/15/03 135 129
6.280%, 07/15/03 250 238
7.930%, 01/20/05 250 261
FICO STRIPS
0.000%, 10/05/05 180 97
0.000%, 12/27/05 334 177
0.000%, 10/06/06 500 250
0.000%, 11/11/06 1,000 496
0.000%, 12/27/06 500 245
Farmer MAC
7.560%, 05/28/02 500 513
FNMA
9.550%, 12/10/97 1,075 1,098
9.150%, 04/10/98 1,175 1,208
9.550%, 03/10/99 255 269
7.000%, 08/12/02 250 246
5.875%, 02/02/06 5,000 4,575
SBA Ser 1988-10-C
9.350%, 07/01/98 12 13
TVA
6.250%, 08/01/99 400 395
8.375%, 10/01/99 2,900 3,016
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $15,310) 14,734
--------
- ----------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS -- 38.8%
- ----------------------------------------------------------
FHLMC CMO
7.500%, 11/15/01 4,350 4,394
6.700%, 05/15/05 1,925 1,896
7.000%, 09/15/07 3,425 3,230
6.500%, 04/15/08 4,850 4,475
7.750%, 01/15/20 1,285 1,294
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
11
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
- --------------------------------------------------------------------------------
GOVERNMENT SECURITIES FUND (CONTINUED)
- ----------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS (CONTINUED)
- ----------------------------------------------------------
FHLMC
7.000%, 04/01/00 $ 23 $ 23
9.000%, 11/01/05 844 877
9.000%, 05/01/06 1,260 1,308
7.250%, 05/01/07 52 51
9.000%, 08/01/09 747 771
9.000%, 12/01/09 1,137 1,193
6.500%, 11/15/22 5,000 4,626
FNMA REMIC
9.150%, 08/25/03 171 172
7.350%, 06/25/07 2,000 1,898
6.250%, 10/25/22 87 86
FNMA
8.500%, 03/01/98 128 132
7.000%, 09/01/07 3,278 3,222
6.250%, 01/25/09 1,000 939
GNMA
6.500%, 07/15/08 1,213 1,170
6.500%, 03/15/09 114 110
6.500%, 05/15/09 3,060 2,952
9.000%, 09/15/16 294 309
9.000%, 10/15/16 110 116
9.500%, 08/15/17 499 536
10.000%, 04/15/19 204 224
10.000%, 05/15/19 48 54
9.500%, 12/15/19 378 406
7.500%, 06/15/23 4,129 4,045
7.000%, 03/15/24 2,201 2,101
8.500%, 10/15/24 1,347 1,382
8.000%, 07/15/25 2,215 2,225
7.000%, 01/15/26 4,869 4,645
7.500%, 03/15/27 3,030 2,968
GNMA II
10.500%, 06/15/98 7 7
10.500%, 09/15/98 1 1
9.000%, 07/15/16 558 586
9.000%, 11/15/16 287 301
7.000%, 04/15/24 2,928 2,793
--------
- ----------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------
TOTAL U.S. GOVERNMENT MORTGAGE-
BACKED OBLIGATIONS
(Cost $59,350) $57,518
--------
- ----------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS (CONTINUED)
- ----------------------------------------------------------
Treasury LINCS
6.000%, 08/15/09 $ 2,500 2,203
U.S. Treasury Notes
8.500%, 04/15/97 2,750 2,753
6.500%, 04/30/97 1,450 1,451
6.875%, 04/30/97 6,350 6,357
8.500%, 07/15/97 1,500 1,512
6.500%, 08/15/97 2,500 2,508
8.625%, 08/15/97 925 935
5.125%, 04/30/98 1,800 1,781
9.000%, 05/15/98 1,425 1,469
5.125%, 06/30/98 2,500 2,469
9.250%, 08/15/98 2,425 2,518
5.625%, 11/30/98 3,000 2,965
6.375%, 01/15/99 1,500 1,500
7.125%, 09/30/99 3,000 3,040
6.000%, 10/15/99 1,500 1,483
7.875%, 11/15/99 1,300 1,341
8.500%, 02/15/00 2,850 2,989
5.500%, 04/15/00 500 485
8.750%, 08/15/00 2,775 2,947
6.375%, 08/15/02 5,425 5,328
5.750%, 08/15/03 2,000 1,889
5.875%, 02/15/04 1,500 1,419
6.500%, 08/15/05 3,000 2,917
U.S. Treasury Bonds
5.625%, 02/15/06 12,500 11,423
9.375%, 02/15/06 1,000 1,161
7.125%, 02/15/23 2,500 2,470
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $71,299) 69,313
--------
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
12
<PAGE>
[Graphic--Marquis "M" Logo]
MARCH 31, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
GOVERNMENT SECURITIES FUND (CONCLUDED)
- ----------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------
CORPORATE OBLIGATIONS -- 2.9%
- ----------------------------------------------------------
Anheuser Busch
8.750%, 12/01/99 $ 600 $ 629
Ford Capital
9.000%, 08/15/98 1,425 1,473
General Foods
6.000%, 06/15/01 500 477
Lehman Brothers Holdings
6.375%, 06/01/98 500 499
New England Telephone & Telegraph
6.250%, 12/15/97 700 701
Pepsico
7.625%, 12/18/98 500 509
--------
TOTAL CORPORATE OBLIGATIONS
(Cost $4,333) 4,288
--------
- ----------------------------------------------------------
CASH EQUIVALENT -- 0.6%
- ----------------------------------------------------------
SEI Liquid Asset Trust Government
Portfolio (A) 899 899
--------
TOTAL CASH EQUIVALENT
(Cost $899) 899
--------
TOTAL INVESTMENTS -- 99.0%
(Cost $151,191) 146,752
--------
OTHER ASSETS AND LIABILITIES, NET-- 1.0% 1,463
--------
- ----------------------------------------------------------
DESCRIPTION VALUE (000)
- ----------------------------------------------------------
NET ASSETS:
- ----------------------------------------------------------
Fund Shares of Class A (unlimited
authorization -- no par value)
based on 15,304,629 outstanding
shares of beneficial interest $152,827
Fund Shares of Class B (unlimited
authorization -- no par value)
based on 68,322 outstanding shares
of beneficial interest 674
Accumulated net realized loss on
investments (848)
Net unrealized depreciation on
investments (4,438)
--------
TOTAL NET ASSETS-- 100.0% $148,215
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE-- CLASS A $9.64
========
MAXIMUM OFFERING PRICE PER SHARE --
CLASS A ($9.64 / 96.50%) $9.99
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS B (1) $9.69
========
- ----------------------------------------------------------
(A) VARIABLE RATE INSTRUMENT. THE RATE REFLECTED ON THE STATEMENT OF NET
ASSETS IS THE RATE IN EFFECT ON MARCH 31, 1997.
CMO--COLLATERALIZED MORTGAGE OBLIGATION
FARMER MAC--FEDERAL AGRICULTURAL MORTGAGE CORPORATION
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
LINCS--SYNTHETIC-LINKED COUPON SECURITIES
REMIC--REAL ESTATE MORTGAGE INVESTMENT CONDUIT
SBA--SMALL BUSINESS ADMINISTRATION
SER--SERIES
STRIPS--SEPARATELY TRADED REGISTERED INTEREST AND PRINCIPAL SECURITIES
TVA--TENNESSEE VALLEY AUTHORITY
(1) 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.
- --------------------------------------------------------------------------------
13
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
- --------------------------------------------------------------------------------
STRATEGIC INCOME BOND FUND
- ----------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS -- 38.4%
- ----------------------------------------------------------
FHLMC
7.500%, 02/01/27 $993 $ 977
8.000%, 02/01/27 503 506
FNMA
8.000%, 09/01/26 499 502
7.500%, 10/01/26 501 492
7.500%, 02/01/27 493 484
GNMA
7.500%, 02/15/27 499 489
7.750%, 02/15/27 494 490
8.000%, 03/20/27 500 500
GNMA II
8.000%, 02/15/27 494 497
--------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS
(Cost $5,048) 4,937
--------
- ----------------------------------------------------------
CORPORATE OBLIGATIONS -- 52.7%
- ----------------------------------------------------------
FINANCIAL SERVICES -- 24.0%
Aetna Services
7.625%, 08/15/26 250 240
Bankers Trust NY
7.250%, 10/15/11 250 237
Ford Motor Credit
6.250%, 12/08/05 250 230
Korea Development Bank, Ser B
8.140%, 05/04/99 250 257
Lehman Brothers
8.500%, 08/01/15 295 309
Loew's
7.625%, 06/01/23 300 278
Nationsbank
7.800%, 09/15/16 500 498
Sunamerica
8.125%, 04/28/23 419 418
Torchmark
7.875%, 05/15/23 400 382
- ----------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------
CORPORATE OBLIGATIONS (CONTINUED)
- ----------------------------------------------------------
FINANCIAL SERVICES (CONTINUED)
US West Capital Funding
7.300%, 01/15/07 $250 $ 244
--------
3,093
--------
INDUSTRIAL -- 14.7%
Brunswick
7.375%, 09/01/23 400 372
Canadian Pacific Limited
9.450%, 08/01/21 280 319
Eastman Chemical
7.600%, 02/01/27 250 240
IBM
7.000%, 10/30/25 250 228
Philip Morris
7.200%, 02/01/07 250 240
Weyerhaeuser
7.500%, 03/01/13 500 494
--------
1,893
--------
UTILITIES -- 14.0%
Commonwealth Edison
8.375%, 09/15/22 300 291
GTE
7.900%, 02/01/27 400 388
MCI Communications
8.250%, 01/20/23 400 400
Minnesota Power & Light
7.500%, 08/01/07 200 196
Pacificorp, Ser F
7.240%, 08/16/23 250 235
United Telephone Florida
8.375%, 01/15/25 270 288
--------
1,798
--------
TOTAL CORPORATE OBLIGATIONS
(Cost $7,078) 6,784
--------
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
14
<PAGE>
[Graphic--Marquis "M" Logo]
MARCH 31, 1997
STATEMENT OF NET ASSETS
(UNAUDITED)
- --------------------------------------------------------------------------------
STRATEGIC INCOME BOND FUND (CONCLUDED)
- ----------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------
CASH EQUIVALENT -- 0.4%
- ----------------------------------------------------------
SEI Liquid Asset Trust
Government Portfolio (A) $ 53 $ 54
--------
TOTAL CASH EQUIVALENT
(Cost $54) 54
--------
- ----------------------------------------------------------
REPURCHASE AGREEMENTS -- 7.5%
- ----------------------------------------------------------
Morgan Stanley
6.200%, dated 03/31/97,
matures 04/01/97,
repurchase price
$478,000 (collateralized
by various FNMA obligations,
total par value
$6,018,000, 9.000%-10.000%,
09/01/18-11/01/19,
total market value
$491,000) (1) $ 477 $ 477
UBS Securities
6.350%, dated 03/31/97,
matures 04/01/97, repurchase
price $482,000 (collateralized
by U.S. Treasury Note,
par value $490,000, 5.875%,
11/15/99, market value
$493,000) (1) 482 482
--------
TOTAL REPURCHASE AGREEMENTS
(Cost $960) 959
--------
TOTAL INVESTMENTS -- 99.0%
(Cost $13,140) 12,734
--------
OTHER ASSETS AND LIABILITIES, NET-- 1.0% 130
--------
- ----------------------------------------------------------
DESCRIPTION VALUE (000)
- ----------------------------------------------------------
NET ASSETS:
- ----------------------------------------------------------
Fund Shares of Class A
(unlimited authorization --
no par value) based on
1,319,932 outstanding shares
of beneficial interest $ 13,184
Fund Shares of Class B
(unlimited authorization --
no par value) based on
8,775 outstanding shares
of beneficial interest 86
Net unrealized depreciation on investments (406)
--------
TOTAL NET ASSETS-- 100.0% $12,864
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE-- CLASS A $9.68
========
MAXIMUM OFFERING PRICE PER SHARE --
CLASS A ($9.68 / 96.50%) $10.03
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE ---CLASS B (2) $9.69
========
- ----------------------------------------------------------
(A) VARIABLE RATE INSTRUMENT. THE RATE REFLECTED ON THE
STATEMENT OF NET ASSETS IS THE RATE IN EFFECT ON
MARCH 31, 1997.
FHLMC--FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA--FEDERAL NATIONAL MORTGAGE ASSOCIATION
GNMA--GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
SER--SERIES
(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
(UNAUDITED)
- --------------------------------------------------------------------------------
LOUISIANA TAX-FREE INCOME FUND
- ----------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ----------------------------------------------------------------
MUNICIPAL BONDS -- 96.9%
- ----------------------------------------------------------------
LOUISIANA -- 96.9%
Alexandria, Louisiana Utilities
Revenue (FGIC)
5.250%, 05/01/11 $100 $ 97
Alexandria, Louisiana Utilities
Revenue Ser B
4.650%, 05/01/04 150 146
Ascension Parish, Louisiana Parish-
Wide School District GO (AMBAC)
4.900%, 03/01/09 150 144
Baton Rouge Louisiana Sales & Use
Tax RB (FSA)
6.000%, 08/01/08 200 208
Bossier City Louisiana Utility RB (FGIC)
4.800%, 10/01/05 500 490
Caddo Parish, Louisiana, GO (MBIA)
5.000%, 02/01/05 350 348
East Baton Rouge Parish, Louisiana
Sales & Use Tax RB (FGIC)
4.800%, 02/01/06 650 633
East Baton Rouge Parish, Louisiana
Sales & Use Tax Revenue Sewer
Improvements Ser A (FGIC)
4.800%, 02/01/09 340 318
East Baton Rouge Parish, Louisiana
Sales & Use Tax RB (FGIC)
5.900%, 02/01/16 500 506
East Baton Rouge, Louisiana Mortgage
Financing Authority Ser B
4.350%, 10/01/00 75 75
5.300%, 10/01/14 85 80
Ernest N. Morial Exhibition Hall Special
Tax RB (MBIA)
4.700%, 07/15/05 115 112
Ernest N. Morial Exhibition Hall Special
Tax Refunding (MBIA)
4.900%, 07/15/07 515 502
- ------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
- ------------------------------------------------------------------
LOUISIANA (CONTINUED)
Gretna, Louisiana Refunding - Sales
Tax Revenue (AMBAC)
5.200%, 06/01/06 $225 $225
Iberville School District (FSA)
5.750%, 10/01/03 250 262
Jefferson Parish, Louisiana Sales & Use
Tax RB (AMBAC)
5.000%, 02/01/08 130 126
Jefferson Parish, Louisiana Sales & Use
Tax RB (AMBAC)
5.000%, 02/01/13 700 650
Jefferson Parish, Louisiana School District
Sales & Use Tax RB (MBIA)
6.250%, 02/01/08 300 317
Jefferson Parish, Louisiana Ad Valorem
Property Tax, GO Ser A (FGIC)
5.250%, 09/01/05 250 252
Jefferson Parish, Louisiana Hospital
Services (FGIC)
5.100%, 01/01/05 300 299
Jefferson Parish, Louisiana Hospital
Services (FGIC)
5.300%, 01/01/07 100 100
Kenner, Louisiana Sales Tax
Revenue (FGIC)
5.750%, 06/01/06 100 103
Lafayette Parish, Louisiana School Board
Sales Tax RB (FSA)
4.875%, 04/01/04 575 570
Lafayette Public Improvement RB
Ser A (FGIC)
4.900%, 03/01/03 505 504
Lafayette Public Improvement
Sales Tax Revenue (FGIC)
5.500%, 03/01/07 200 203
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
16
<PAGE>
[Graphic--Marquis "M" Logo]
MARCH 31, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
LOUISIANA TAX-FREE INCOME FUND (CONTINUED)
- -----------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -----------------------------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
- -----------------------------------------------------------------------
LOUISIANA (CONTINUED)
Lafayette, Louisiana Public Improvement
Sales Tax Revenue (FGIC)
4.625%, 05/01/05 $ 300 $ 289
Lafayette, Louisiana Public Power
Authority Electric Revenue
Refunding (AMBAC)
5.000%, 11/01/06 250 246
5.250%, 11/01/09 250 246
Lafayette, Louisiana Utilities
Revenue (AMBAC)
4.100%, 11/01/99 275 272
Lafayette, Louisiana Utility Revenue
Refunding Bonds (AMBAC)
4.700%, 11/01/04 125 122
Louisiana Housing Finance Agency
Mortgage Single Family Ser B RB
6.000%, 06/01/15 830 830
Louisiana Public Facilities Authority
Department of Public Safety
Equipment Leasing RB (AMBAC)
5.000%, 08/01/05 400 392
Louisiana Public Facilities Authority
Department of Public Safety
RB (AMBAC)
4.900%, 08/01/04 500 491
Louisiana State Alton Ochsner Medical
Foundation PJ-B (MBIA)
6.000%, 05/15/17 100 100
Louisiana State Energy & Power
Authority RB (FGIC)
6.000%, 01/01/13 500 505
Louisiana State GO (FGIC)
6.000%, 08/01/04 1,000 1,060
- ------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
- ------------------------------------------------------------------------
LOUISIANA (CONTINUED)
Louisiana State GO Ser A (MBIA)
5.500%, 05/15/05 $500 $513
5.600%, 05/15/07 250 257
5.700%, 05/15/08 250 257
Louisiana State Greater New Orleans
Expressway, Louisiana Expressway
Revenue
4.800%, 11/01/97 25 25
Louisiana State Public Facilities
Authority Alton Ochsner Medical
Foundation Project RB Ser A (MBIA)
6.000%, 05/15/01 100 105
Louisiana State Public Facilities Authority
Our Lady of Lake Regional Center
RB (MBIA)
5.900%, 12/01/06 390 403
Louisiana State Public Facilities Authority
Special Insurance Assessment
Revenue (FSA)
4.400%, 10/01/00 120 119
Louisiana State Public Facilities Authority
Revenue Jefferson Parish Eastbank
Project (FGIC)
4.850%, 08/01/06 250 243
Louisiana State Public Facilities Authority
RB Ser A (FSA)
5.100%, 03/01/01 250 253
Louisiana State Refunding Bonds
GO (MBIA)
5.375%, 08/01/05 400 407
Louisiana State Refunding Bonds Ad
Valorem Property Tax GO (MBIA)
6.250%, 08/01/99 250 256
Louisiana State Refunding GO
Ser A (MBIA)
5.100%, 08/01/01 250 253
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
17
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
- --------------------------------------------------------------------------------
LOUISIANA TAX-FREE INCOME FUND (CONTINUED)
- -----------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -----------------------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
- -----------------------------------------------------------------
LOUISIANA (CONTINUED)
Louisiana State Refunding GO
Ser A (MBIA)
5.300%, 08/01/04 $250 $254
Louisiana State Refunding GO, Ser A
6.600%, 08/01/97 200 202
Louisiana State University Agricultural
& Mechanical College (FGIC)
5.400%, 07/01/05 150 153
5.500%, 07/01/06 250 255
5.750%, 07/01/14 500 497
Louisiana State Unlimited GO (MBIA)
5.600%, 08/01/07 250 257
5.600%, 08/01/08 250 256
Louisiana State Unlimited Tax
GO (FGIC)
5.125%, 04/15/08 1,000 982
Mandeville, Louisiana Water Utility
Improvements, Ad Valorem
Property Tax
5.150%, 02/01/10 100 97
Natchitoches Parish, Louisiana School
District #7 GO (FSA)
4.900%, 03/01/07 190 186
New Orleans, Louisiana Home Mortgage
Special Obligation
6.250%, 01/15/11 500 530
New Orleans, Louisiana Unlimited
GO (FGIC)
5.850%, 11/01/09 350 359
Orleans Parish School Board, Louisiana
Public School Capital Refinancing
RB (MBIA)
6.000%, 06/01/09 555 586
- ----------------------------------------------------------------
DESCRIPTION PAR (000)VALUE (000)
- ----------------------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
- ----------------------------------------------------------------
LOUISIANA (CONTINUED)
Orleans Parish School Board, Louisiana
Unlimited GO (FGIC)
5.300%, 09/01/10 $250 $246
Orleans Parish, Louisiana School Board
Public School Capital Refinancing
(MBIA)
5.000%, 12/01/05 250 249
Saint James Parish Louisiana General
Obligation Unlimited Ad Valorem
Property Tax
5.200%, 03/01/08 75 74
Saint James Parish, Louisiana General
Obligation Unlimited Ad Valorem
Property Tax
4.800%, 03/01/05 85 83
Saint Tammany Parish, Louisiana School
Board Sales & Use Tax (FGIC)
5.750%, 04/01/03 250 260
Saint Tammany Parish, Louisiana School
District #12 (FGIC)
6.500%, 03/01/05 200 210
Saint Tammany Parish Sales & Use
Tax Revenue (FGIC)
5.750%, 04/01/06 250 260
Shreveport, Louisiana Public
Improvements Ad Valorem
Property Tax
4.750%, 12/01/09 200 183
Shreveport, Louisiana Unlimited Tax
GO (AMBAC)
5.150%, 02/01/09 265 259
Slidell, Louisiana Unlimited GO (AMBAC)
5.000%, 03/01/13 400 371
Slidell, Louisiana Sales & Use Tax
Revenue Public Improvement Ser B
5.400%, 10/01/07 200 202
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
18
<PAGE>
[Graphic--Marquis "M" Logo]
March 31, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
LOUISIANA TAX-FREE INCOME FUND (CONCLUDED)
- ------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
- ------------------------------------------------------------------
LOUISIANA (CONTINUED)
Slidell, Louisiana Unlimited
GO (AMBAC)
4.900%, 03/01/09 $200 $ 190
Slidell, Louisiana, Sales & Use Tax
Revenue Public Improvement Ser B
5.200%, 10/01/05 100 101
--------
22,216
--------
TOTAL MUNICIPAL BONDS
(Cost $22,233) 22,216
--------
- ------------------------------------------------------------------
CASH EQUIVALENTS -- 6.5%
- ------------------------------------------------------------------
SEI Tax-Exempt Trust
Institutional Tax Free
Portfolio (A) 753 754
SEI Tax Exempt Trust Tax
Free Portfolio (A) 749 749
--------
TOTAL CASH EQUIVALENTS
(Cost $1,503) 1,503
--------
TOTAL INVESTMENTS -- 103.4%
(Cost $23,736) 23,719
--------
OTHER ASSETS AND LIABILITIES, NET -- (3.4%) (787)
--------
- ------------------------------------------------------------------
DESCRIPTION VALUE (000)
- ------------------------------------------------------------------
Net Assets:
- ------------------------------------------------------------------
Fund Shares of Class A (unlimited
authorization --- no par value)
based on 2,262,998 outstanding
shares of beneficial interest $22,211
Fund Shares of Class B (unlimited
authorization -- no par value)
based on 78,871 outstanding shares
of beneficial interest 792
Accumulated net realized loss on investments (54)
Net unrealized depreciation on investments (17)
-------
TOTAL NET ASSETS-- 100.0% $22,932
=======
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, OFFERING AND REDEMPTION
PRICE PER SHARE --- CLASS B (1) $9.80
=======
- --------------------------------------------------------------------------------
(A) VARIABLE RATE INSTRUMENT.THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON MARCH 31, 1997.
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 INVESTORS ASSURANCE
(1) 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.
- --------------------------------------------------------------------------------
19
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
- --------------------------------------------------------------------------------
BALANCED FUND
- ------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------------------------------
COMMON STOCKS -- 52.9%
- ------------------------------------------------------------------
AEROSPACE & DEFENSE -- 0.7%
Sci Systems* 16,200 $ 820
--------
AIR TRANSPORTATION -- 0.8%
British Airways, PLC, ADR* 9,200 967
--------
APPAREL/TEXTILES -- 1.8%
Jones Apparel Group* 28,600 1,062
Tommy Hilfiger* 10,000 522
VF 7,900 528
--------
2,112
--------
AUTOMOTIVE -- 1.9%
Chrysler 25,500 765
Ford Motor 26,350 827
TRW 13,600 704
--------
2,296
--------
BANKS -- 4.4%
BankAmerica 7,200 725
Citicorp 5,900 639
First Union 10,200 827
J.P. Morgan 9,900 973
PNC Bank 17,800 712
Republic New York 5,500 485
Standard Federal Bancorporation 15,500 899
--------
5,260
--------
BUILDING & CONSTRUCTION-- 0.5%
Lennar 25,600 627
--------
CHEMICALS -- 3.3%
E.I. du Pont de Nemours 9,070 961
Dow Chemical 6,000 480
Lubrizol 22,800 741
Praxair 18,120 813
Vulcan Materials 13,950 905
--------
3,900
--------
- ---------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- ---------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- ---------------------------------------------------------------
COMPUTERS & SERVICES -- 3.2%
Compaq Computer* 10,000 $ 766
Gateway 2000* 14,660 751
Hewlett Packard 15,000 799
Seagate Technology* 16,200 727
Tektronix 14,000 707
--------
3,750
--------
CONCRETE & MINERAL PRODUCTS -- 0.7%
Armstrong World Industries 11,970 775
--------
CONSUMER PRODUCTS -- 0.7%
International Game Technology 24,000 387
Nine West Group* 11,000 492
--------
879
--------
DRUGS -- 1.2%
Merck 9,330 786
Schering Plough 8,200 597
--------
1,383
--------
ELECTRICAL SERVICES -- 5.6%
Baltimore Gas & Electric 13,000 348
Consolidated Edison New York 29,100 873
Duke Power 8,600 379
Florida Progress 15,400 468
GPU 26,000 835
New England Electric System 17,300 595
Nipsco Industries 17,300 679
OGE Energy Corporation 9,400 394
PP&L Resources 26,400 535
Pacific Enterprises 18,600 563
Public Service Enterprise Group 21,500 564
Southern 21,100 446
--------
6,679
--------
FINANCIAL SERVICES -- 3.0%
Alex Brown 14,800 629
Bear Stearns 38,256 1,004
Greenpoint Financial Corporation 17,400 896
SLMA 10,600 1,010
--------
3,539
--------
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
20
<PAGE>
[Graphic--Marquis "M" Logo]
MARCH 31, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
BALANCED FUND (CONTINUED)
- -----------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -----------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- -----------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 0.5%
IBP 26,400 $ 650
--------
HOUSEHOLD PRODUCTS -- 0.5%
Maytag 29,000 598
--------
INSURANCE -- 2.6%
AMBAC 17,300 1,116
Providian 18,400 984
Travelers 19,600 938
--------
3,038
--------
LEISURE -- 0.4%
Callaway Golf 16,000 458
--------
LUMBER & WOOD PRODUCTS -- 0.8%
Plum Creek Timber Company 32,000 892
--------
MACHINERY -- 2.9%
Caterpillar 10,200 819
Crane 19,500 612
Cummins Engine 14,000 717
Deere 13,800 600
Parker Hannifin 16,850 720
--------
3,468
--------
MEDICAL PRODUCTS & SERVICES -- 0.5%
Lincare Holdings Incorporated* 15,700 648
--------
MISCELLANEOUS BUSINESS SERVICES -- 1.1%
Computer Associates International 13,800 536
Microsoft* 2,800 257
--------
793
--------
MISCELLANEOUS MANUFACTURING -- 1.1%
Harsco 22,800 829
Wolverine Tube* 16,800 437
--------
1,266
--------
MISCELLANEOUS TRANSPORTATION -- 0.5%
Fleetwood Enterprises 23,700 593
--------
- -------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- -------------------------------------------------------------------
PETROLEUM & FUEL PRODUCTS-- 2.5%
Noble Drilling* 36,000 $ 621
Phillips Petroleum 16,200 662
Union Texas Petroleum 45,000 827
USX-Marathon Group 32,000 892
--------
3,002
--------
PETROLEUM REFINING -- 0.7%
Mobil 6,000 784
--------
PROFESSIONAL SERVICES -- 1.8%
Moore 41,590 832
Servicemaster Limited Partnership 31,650 862
Tech Data Corporation* 20,000 483
--------
2,177
--------
RAILROADS -- 0.7%
Illinois Central Corporation 26,700 841
--------
RETAIL -- 3.6%
American Stores 17,300 770
Limited 26,000 478
Lone Star Steakhouse & Saloon* 23,000 526
Ross Stores Incorporated 34,260 869
TJX 20,200 864
Waban* 27,700 772
--------
4,279
--------
SEMI-CONDUCTORS/INSTRUMENTS -- 1.5%
Applied Materials* 17,000 788
Micron Technology 25,480 1,032
--------
1,820
--------
STEEL & STEEL WORKS -- 1.2%
LTV 50,000 631
USX-U.S. Steel Group Incorporated 28,530 760
--------
1,391
--------
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
21
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
- --------------------------------------------------------------------------------
BALANCED FUND (CONTINUED)
- ------------------------------------------------------------------
DESCRIPTION SHARES/PAR (000) VALUE (000)
- ------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- ------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATION-- 1.3%
Ameritech 8,200 $ 504
Century Telephone Enterprises 25,750 760
SBC Communications 6,300 332
--------
1,596
--------
TRUCKING -- 0.7%
Werner Enterprises 41,550 779
--------
WHOLESALE -- 0.6%
Philip Morris 6,700 765
--------
TOTAL COMMON STOCKS
(Cost $55,857) 62,825
--------
- ------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATION --3.9%
- ------------------------------------------------------------------
FNMA
5.875%, 02/02/06 $5,000 4,575
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATION
(Cost $4,881) 4,575
--------
- ------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS -- 18.4%
- ------------------------------------------------------------------
FHLMC REMIC
7.150%, 01/15/23 2,000 1,867
FHLMC
7.000%, 04/01/00 7 8
9.000%, 05/01/06 103 107
9.000%, 08/01/09 405 419
6.500%, 11/15/22 1,486 1,375
FNMA CMO
7.000%, 01/25/03 2,000 1,953
FNMA REMIC
9.150%, 08/25/03 147 148
FNMA
7.000%, 09/01/07 1,311 1,289
- ------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS (CONTINUED)
- ------------------------------------------------------------------
GNMA
7.500%, 08/15/07 $ 542 $ 545
6.500%, 07/15/08 606 585
7.000%, 07/15/08 501 495
6.500%, 03/15/09 57 55
6.500%, 05/15/09 1,530 1,476
13.500%, 05/15/11 22 26
12.500%, 10/15/13 3 3
12.000%, 03/15/14 23 27
13.500%, 09/15/14 12 15
9.000%, 12/15/16 78 83
10.000%, 07/15/18 148 163
10.000%, 03/15/19 97 107
7.000%, 04/15/24 1,211 1,155
7.500%, 06/15/25 1,804 1,768
7.000%, 02/15/26 7,024 6,700
7.500%, 05/15/26 732 717
8.000%, 05/15/26 744 748
--------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS
(Cost $22,706) 21,834
--------
- ------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 20.4%
- ------------------------------------------------------------------
U.S. Treasury Bonds
5.625%, 02/15/06 3,000 2,742
7.125%, 02/15/23 1,000 988
U.S. Treasury Notes
6.750%, 05/31/97 500 501
6.000%, 08/31/97 2,000 2,001
9.000%, 05/15/98 2,000 2,061
9.250%, 08/15/98 2,000 2,077
6.375%, 01/15/99 1,000 1,000
7.000%, 04/15/99 3,000 3,031
6.375%, 07/15/99 1,500 1,497
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
22
<PAGE>
[Graphic--Marquis "M" Logo]
MARCH 31, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
BALANCED FUND (CONCLUDED)
- -------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS (CONTINUED)
- -------------------------------------------------------------------
U.S. Treasury Notes (CONTINUED)
8.000%, 08/15/99 $2,000 $ 2,063
8.500%, 02/15/00 500 524
6.250%, 10/31/01 2,000 1,960
6.250%, 02/15/03 1,000 973
5.750%, 08/15/03 1,500 1,417
6.500%, 08/15/05 1,500 1,458
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $24,939) 24,293
--------
- -------------------------------------------------------------------
CASH EQUIVALENTS -- 1.7%
- -------------------------------------------------------------------
SEI Liquid Asset Trust
Government Portfolio (A) 1,049 1,049
SEI Liquid Asset Trust
Treasury Portfolio (A) 1,029 1,030
--------
TOTAL CASH EQUIVALENTS
(Cost $2,079) 2,079
--------
- -------------------------------------------------------------------
REPURCHASE AGREEMENT -- 2.8%
- -------------------------------------------------------------------
UBS Securities
6.350%, dated 03/31/97,
matures 04/01/97, repurchase price
$3,334,000 (collateralized by U.S.
Treasury Note, par value $3,305,000,
7.875%, 01/15/98, market value
$3,404,000) 3,333 3,333
--------
TOTAL REPURCHASE AGREEMENT
(Cost $3,333) 3,333
--------
TOTAL INVESTMENTS -- 100.1%
(Cost $113,795) $118,939
--------
OTHER ASSETS AND LIABILITIES, NET -- (0.1%) (126)
--------
- ---------------------------------------------------------------
DESCRIPTION VALUE (000)
- ---------------------------------------------------------------
NET ASSETS
- ---------------------------------------------------------------
Fund Shares of Class A (unlimited
authorization -- no par value)
based on 10,364,456 outstanding
shares of beneficial interest $105,896
Fund Shares of Class B (unlimited
authorization -- no par value)
based on 230,243 outstanding shares
of beneficial interest 2,476
Accumulated net realized gain on investments 5,297
Net unrealized appreciation on investments 5,144
--------
TOTAL NET ASSETS-- 100.0% $118,813
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE-- CLASS A $11.21
========
MAXIMUM OFFERING PRICE PER SHARE --
CLASS A ($11.21 / 96.50%) $11.62
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS B (1) $11.27
========
- --------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY
(A) VARIABLE RATE INSTRUMENT. THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON MARCH 31, 1997.
ADR--AMERICAN DEPOSITORY RECEIPT
AMBAC-- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
CMO--COLLATERALIZED MORTGAGE OBLIGATION
GNMA--GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
FHLMC--FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA--FEDERAL NATIONAL MORTGAGE ASSOCIATION
PLC--PUBLIC LIMITED COMPANY
REMIC--REAL ESTATE MORTGAGE INVESTMENT CONDUIT
SLMA--STUDENT LOAN MARKETING ASSOCIATION
STRIPS--SEPARATELY TRADED REGISTERED INTEREST AND PRINCIPAL SECURITIES
(1) 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.
- --------------------------------------------------------------------------------
23
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
- --------------------------------------------------------------------------------
VALUE EQUITY FUND
- ----------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------------------
COMMON STOCKS 99.3%
- ----------------------------------------------------------------
AEROSPACE & DEFENSE -- 1.5%
Sci Systems* 30,800 $ 1,559
----------
AIR TRANSPORTATION -- 1.5%
AMR* 8,900 734
ASA Holdings 39,800 826
----------
1,560
----------
APPAREL/TEXTILES -- 2.7%
Russell 42,000 1,501
VF 20,000 1,337
----------
2,838
----------
AUTOMOTIVE -- 2.4%
Chrysler 39,800 1,194
Ford Motor 41,000 1,286
----------
2,480
----------
BANKS -- 7.4%
BankAmerica 14,300 1,441
Citicorp 14,500 1,570
Comerica 10,730 605
First Union 12,500 1,014
J.P. Morgan 13,500 1,326
PNC Bank 23,000 920
Republic New York 10,800 952
----------
7,828
----------
BUILDING & CONSTRUCTION -- 1.7%
Centex 35,060 1,236
Jacobs Engineering Group* 22,800 559
----------
1,795
----------
CHEMICALS -- 4.1%
Dexter 48,800 1,470
E.I. du Pont de Nemours 12,900 1,367
Morton International 35,000 1,479
----------
4,316
----------
- --------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- --------------------------------------------------------------
COMPUTERS & SERVICES -- 4.0%
Compaq Computer* 18,400 $ 1,410
Gateway 2000* 25,810 1,323
Hewlett Packard 28,500 1,518
----------
4,251
----------
CONCRETE & MINERAL PRODUCTS -- 1.2%
Armstrong World Industries 19,500 1,263
----------
DRUGS -- 1.2%
Merck 14,700 1,238
----------
ELECTRICAL SERVICES -- 11.0%
Baltimore Gas & Electric 51,500 1,378
Consolidated Edison New York 41,000 1,230
Duke Power 29,900 1,319
Enova 70,100 1,542
Florida Progress 26,400 802
GPU 40,000 1,285
New England Electric System 24,300 835
Northern States Power 11,900 564
OGE Energy 12,600 528
PP&L Resources 57,000 1,154
Pacific Enterprises 18,340 555
Southern 22,500 475
----------
11,667
----------
ENTERTAINMENT -- 0.6%
King World Productions* 17,500 639
----------
FINANCIAL SERVICES -- 4.9%
AG Edwards 30,000 922
Alex Brown 27,750 1,179
Bear Stearns 36,382 955
Dean Witter Discover 25,800 900
SLMA 12,200 1,162
----------
5,118
----------
FOOD, BEVERAGE & TOBACCO -- 2.9%
Adolph Coors, Cl B 75,730 1,609
Dean Foods 42,400 1,468
----------
3,077
----------
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
24
<PAGE>
[Graphic--Marquis "M" Logo]
MARCH 31, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
VALUE EQUITY FUND (CONTINUED)
- ---------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- ---------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- ---------------------------------------------------------------
GAS/NATURAL GAS -- 4.5%
National Fuel & Gas 37,000 $ 1,582
Panenergy 27,000 1,164
Peoples Energy 26,500 878
Williams 25,500 1,135
----------
4,759
----------
HOUSEHOLD PRODUCTS -- 1.6%
Snap-On Tools 42,460 1,645
----------
INSURANCE -- 7.0%
AMBAC 14,500 935
Conseco 36,300 1,293
Equitable 49,800 1,357
Progressive of Ohio 16,700 1,067
Sunamerica 32,000 1,204
Travelers 33,000 1,580
----------
7,436
----------
MACHINERY -- 7.3%
Applied Materials* 26,900 1,247
Caterpillar 19,100 1,533
Crane 45,000 1,412
Cummins Engine 22,000 1,127
Deere 31,000 1,348
Ingersoll Rand 24,000 1,047
----------
7,714
----------
MEASURING DEVICES -- 1.0%
Beckman Instruments 25,000 1,050
----------
MEDICAL PRODUCTS & SERVICES -- 0.6%
Tenet Healthcare* 24,450 602
----------
METALS & MINING -- 1.3%
Vulcan Materials 21,760 1,412
----------
MISCELLANEOUS BUSINESS SERVICES -- 1.1%
Computer Associates International 29,110 1,132
----------
- --------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- --------------------------------------------------------------
MISCELLANEOUS MANUFACTURING -- 1.8%
Magna International, Cl A 24,150 $ 1,198
Wolverine Tube* 25,300 658
----------
1,856
----------
MISCELLANEOUS TRANSPORTATION -- 1.6%
Fleetwood Enterprises 36,000 900
Harsco 22,200 808
----------
1,708
----------
PETROLEUM & FUEL PRODUCTS -- 2.1%
Petroleum Geo Services, ADR* 20,000 860
USX-Marathon Group 50,000 1,394
----------
2,254
----------
PETROLEUM REFINING -- 4.1%
Chevron 22,000 1,532
Exxon 13,300 1,433
Mobil 10,400 1,359
----------
4,324
----------
PRINTING & PUBLISHING -- 2.3%
Moore 62,000 1,240
New York Times, Cl A 27,500 1,213
----------
2,453
----------
RAILROADS -- 0.6%
Norfolk Southern 7,600 648
----------
RETAIL -- 5.4%
American Stores 23,900 1,064
Family Dollar Stores 50,000 1,169
Heilig-Meyers 100,300 1,592
Ross Stores 72,000 1,827
----------
5,652
----------
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
25
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
- --------------------------------------------------------------------------------
VALUE EQUITY FUND (CONCLUDED)
- -------------------------------------------------------------------------
DESCRIPTION SHARES/PAR (000) VALUE (000)
- -------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- -------------------------------------------------------------------------
RUBBER & PLASTIC -- 2.3%
Dow Chemical 17,300 $ 1,384
Goodyear Tire & Rubber 19,000 993
----------
2,377
----------
SEMI-CONDUCTORS/INSTRUMENTS -- 2.7%
Intel 9,460 1,316
Micron Technology 38,500 1,559
----------
2,875
----------
STEEL & STEEL WORKS -- 2.5%
LTV 112,000 1,414
USX-U.S. Steel Group 45,700 1,217
----------
2,631
----------
TELEPHONES & TELECOMMUNICATION -- 0.5%
NYNEX 12,000 548
----------
TRUCKING -- 0.9%
Werner Enterprises 48,750 914
----------
WHOLESALE -- 1.2%
Universal 43,600 1,259
----------
TOTAL COMMON STOCKS
(Cost $96,007) 104,878
----------
- -------------------------------------------------------------------------
INVESTMENT COMPANY -- 2.4%
- -------------------------------------------------------------------------
SEI Equity Index Fund 107 2,579
----------
TOTAL INVESTMENT COMPANY
(Cost $2,724) 2,579
----------
- -------------------------------------------------------------------------
CASH EQUIVALENT -- 1.4%
- -------------------------------------------------------------------------
SEI Liquid Asset Trust
Government Portfolio (A) $1,458 1,458
----------
TOTAL CASH EQUIVALENT
(Cost $1,458) 1,458
----------
- -------------------------------------------------------------------------
DESCRIPTION VALUE (000)
- -------------------------------------------------------------------------
TOTAL INVESTMENTS -- 103.1%
(Cost $100,188) $108,915
----------
OTHER ASSETS AND LIABILITIES, NET -- (3.1%) (3,269)
----------
- -------------------------------------------------------------------------
NET ASSETS:
- -------------------------------------------------------------------------
Fund Shares of Class A (unlimited
authorization -- no par value)
based on 7,638,870 outstanding
shares of beneficial interest 83,226
Fund Shares of Class B (unlimited
authorization -- no par value) based on
398,576 outstanding shares of beneficial
interest 4,841
Accumulated net realized gain on investments 8,852
Net unrealized appreciation on investments 8,727
----------
TOTAL NET ASSETS-- 100.0% $ 105,646
==========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE-- CLASS A $13.14
==========
MAXIMUM OFFERING PRICE PER SHARE --
CLASS A ($13.14 / 96.50%) $13.62
==========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS B (1) $13.19
==========
- -------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY
(A) VARIABLE RATE INSTRUMENT. THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON MARCH 31, 1997.
ADR--AMERICAN DEPOSITORY RECEIPT
CL--CLASS
SLMA--STUDENT LOAN MARKETING ASSOCIATION
(1) 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.
- --------------------------------------------------------------------------------
26
<PAGE>
[Graphic--Marquis "M" Logo]
MARCH 31, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
GROWTH EQUITY FUND
- ------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------------------------------
COMMON STOCKS -- 92.3%
- ------------------------------------------------------------------
AGRICULTURE -- 1.5%
Dekalb Genetics, Cl B 3,125 $ 166
Pioneer Hi-Bred International 3,010 189
--------
355
--------
APPAREL/TEXTILES -- 2.8%
Jones Apparel Group * 8,000 297
Nike, Cl B 3,500 217
St. John Knits 3,800 164
--------
678
--------
BANKS -- 0.6%
Synovus Financial 5,270 155
--------
BEAUTY PRODUCTS -- 2.2%
Avon Products 6,000 315
Colgate-Palmolive 2,290 228
--------
543
--------
BROADCASTING, NEWSPAPERS
& ADVERTISING -- 0.7%
Omnicom Group 3,700 185
--------
CHEMICALS -- 3.3%
Betzdearborn 2,940 186
Cytec Industries* 2,435 92
E.I. du Pont de Nemours 3,000 318
Raychem 2,600 214
--------
810
--------
COMMUNICATIONS EQUIPMENT-- 3.2%
ADC Telecommunications* 5,300 142
Andrew* 5,505 199
Northern Telecom 2,340 153
Pairgain Technologies* 3,015 89
Tellabs* 5,800 210
--------
793
--------
COMPUTERS & SERVICES -- 5.2%
Adobe Systems 1,945 78
American Power Conversion* 3,660 79
Amphenal Class* 8,000 200
- ------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- ------------------------------------------------------------------
Compaq Computer* 3,200 $ 245
Dell Computer* 1,520 103
Gateway 2000* 4,500 231
Hewlett Packard 1,325 71
Micron Electronics* 4,310 82
Seagate Technology* 2,085 94
Western Digital* 1,395 79
--------
1,262
--------
CONTAINERS & PACKAGING-- 1.1%
Avery Dennison 5,150 198
Newell 1,990 67
--------
265
--------
DRUGS -- 8.4%
Alza, Cl A* 2,830 78
Biogen* 5,140 192
Bristol-Myers Squibb 4,400 260
Eli Lilly 3,750 308
Merck 3,300 278
Pfizer 3,200 269
Pharmacia Upjohn, ADR 3,800 139
Schering Plough 4,100 298
Warner Lambert 2,700 234
--------
2,056
--------
ENTERTAINMENT -- 0.3%
Walt Disney 975 71
--------
FINANCIAL SERVICES -- 2.8%
Franklin Resources 6,750 344
Price (T. Rowe) Associates 4,060 151
SLMA 1,900 181
--------
676
--------
FOOD, BEVERAGE & TOBACCO-- 7.1%
Campbell Soup 6,400 297
Coca Cola Enterprises 1,180 68
Coca Cola Company 5,500 307
General Mills 3,190 198
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
27
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
- --------------------------------------------------------------------------------
GROWTH EQUITY FUND (CONTINUED)
- -----------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -----------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- -----------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO (CONTINUED)
H.J. Heinz 5,875 $ 232
Hershey Foods 4,690 234
Panamerican Beverage, Cl A 1,715 92
Philip Morris 2,600 297
--------
1,725
--------
HOTELS & LODGING -- 2.0%
HFS* 2,800 165
Marriott International 5,000 249
Promus Hotel* 2,360 78
--------
492
--------
HOUSEHOLD PRODUCTS -- 5.6%
General Electric 3,100 308
Gillette 4,300 312
Hubbell, Cl B 3,840 162
Illinois Tool Works 2,100 171
Minnesota Mining & Manufacturing 2,890 244
Valspar 6,000 173
--------
1,370
--------
INSURANCE -- 1.4%
American International Group 1,505 177
Marsh & McLennan 1,600 181
--------
358
--------
LEASING & RENTING -- 0.9%
Pitney Bowes 3,700 217
--------
LEISURE -- 0.9%
Callaway Golf 7,500 215
--------
LUMBER & WOOD PRODUCTS-- 0.7%
Plum Creek Timber 6,200 173
--------
- ---------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- ---------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- ----------------------------------------------------------------
MACHINERY -- 1.8%
Duriron 7,800 $ 172
Trinova 4,415 148
Tyco International 2,150 118
--------
438
--------
MARINE TRANSPORTATION -- 0.8%
Carnival, Cl A 5,000 185
--------
MEASURING DEVICES -- 2.1%
Perkin Elmer 2,480 160
Thermo Electron* 8,790 271
Thermo Instrument Systems* 3,280 95
--------
526
--------
MEDICAL PRODUCTS & SERVICES-- 4.0%
Becton Dickinson 1,525 69
Dentsply International 4,200 210
HBO 3,000 142
Health Management Associates, Cl A* 3,030 72
Healthsouth Rehabilitation* 3,490 67
Lincare Holdings Incorporated* 1,945 80
Johnson & Johnson 5,000 264
Oxford Health Plan* 1,155 68
--------
972
--------
MISCELLANEOUS BUSINESS SERVICES-- 7.3%
Adaptec* 4,180 149
Altera* 4,145 178
BMC Software* 5,600 258
Cadence Design Systems* 8,300 285
Ecolab 2,110 80
Equifax 6,800 185
Microsoft* 750 69
Parametric Technology* 5,100 230
Peoplesoft* 1,885 75
Shared Medical Systems 1,325 62
Sun Microsystems* 7,200 208
--------
1,779
--------
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
28
<PAGE>
[Graphic--Marquis "M" Logo]
MARCH 31, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
GROWTH EQUITY FUND (CONTINUED)
- -----------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -----------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- -----------------------------------------------------------------
MISCELLANEOUS CONSUMER SERVICES-- 0.9%
Manpower 1,875 $ 68
Robert Half International* 4,250 148
--------
216
--------
MISCELLANEOUS MANUFACTURING -- 1.3%
Belden 9,000 321
--------
OFFICE FURNITURE & FIXTURES -- 1.3%
Miller Herman 4,645 317
--------
PAPER & PAPER PRODUCTS-- 0.6%
Caraustar Industries 5,700 142
--------
PETROLEUM & FUEL PRODUCTS-- 5.9%
Anadarko Petroleum 1,950 109
BJ Services* 1,810 87
Ensco International* 4,375 215
Falcon Drilling* 2,050 76
Halliburton 2,410 163
Marine Drilling* 4,310 77
Newfield Exploration * 7,915 150
Reading & Bates* 7,335 166
Schlumberger 2,000 215
Smith International* 1,640 75
Union Texas Petroleum 5,490 101
--------
1,434
--------
PRINTING & PUBLISHING -- 2.4%
Gannett 930 80
McGraw Hill 3,420 175
Meredith 10,100 234
Tribune 2,500 101
--------
590
--------
PROFESSIONAL SERVICES -- 0.7%
Servicemaster Limited Partnership 6,750 184
--------
- -----------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -----------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- -----------------------------------------------------------------
RETAIL -- 6.4%
Bed Bath and Beyond* 3,665 $ 89
Dayton Hudson 1,825 76
Dollar General 2,370 74
Dollar Tree Stores* 1,920 71
Gap 8,800 295
Home Depot 1,325 71
Kroger* 3,600 183
Quality Food Centers* 1,970 83
Sears Roebuck 4,800 241
TJX 5,000 214
Walgreen 4,130 173
--------
1,570
--------
RUBBER & PLASTIC -- 0.5%
Sealed Air* 3,100 127
--------
SEMI-CONDUCTORS/INSTRUMENTS -- 1.1%
Intel 1,378 192
Vitesse Semiconductor* 2,992 83
--------
275
--------
TELEPHONES & TELECOMMUNICATION-- 3.8%
Bell Atlantic 3,000 183
BellSouth 5,300 224
Cincinnati Bell 3,100 175
Lucent Technologies 2,566 135
Pacific Telesis Group 1,805 68
Worldcom* 6,300 139
--------
924
--------
TESTING LABORATORIES -- 0.3%
Quintiles Transnational* 1,305 70
--------
WHOLESALE -- 0.3%
Cardinal Health 1,205 66
--------
TOTAL COMMON STOCKS
(Cost $21,375) 22,535
--------
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
29
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
- --------------------------------------------------------------------------------
GROWTH EQUITY FUND
- ------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------------
CASH EQUIVALENTS -- 2.1%
- ------------------------------------------------------------------
SEI Liquid Asset Trust (A)
Government Portfolio $ 235 $ 235
SEI Liquid Asset Trust
Treasury Portfolio (A) 273 274
--------
TOTAL CASH EQUIVALENTS
(Cost $509) 509
--------
- ------------------------------------------------------------------
REPURCHASE AGREEMENT -- 5.5%
- ------------------------------------------------------------------
UBS Securities
5.550%, dated 3/31/97,
matures 04/01/97, repurchase price
$1,349,000 (collateralized by U.S.
Treasury Note, par value $1,340,000,
7.875%, 1/15/98, market value
$1,380,000) 1,349 1,349
--------
TOTAL REPURCHASE AGREEMENT
(Cost $1,349) 1,349
--------
TOTAL INVESTMENTS -- 99.9%
(Cost $23,233) 24,393
--------
OTHER ASSETS AND LIABILITIES, NET-- 0.1% 29
--------
- ---------------------------------------------------------------
DESCRIPTION VALUE (000)
- ---------------------------------------------------------------
NET ASSETS
- ---------------------------------------------------------------
Fund Shares of Class A (unlimited
authorization -- no par value)
based on 1,926,426 outstanding
shares of benificial interest $22,048
Fund Shares of Class B (unlimited
authorization -- no par value) based on
60,895 outstanding shares of benificial interest 761
Accumulated net realized gain on investments 453
Net unrealized appreciation on investments 1,160
--------
TOTAL NET ASSETS-- 100.0% $ 24,422
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE-- CLASS A $12.29
========
MAXIMUM OFFERING PRICE PER SHARE --
CLASS A ($12.29 / 96.50%) $12.74
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS B (1) $12.26
========
- --------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY
(A) VARIABLE RATE INSTRUMENT. THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON MARCH 31, 1997.
ADR--AMERICAN DEPOSITORY RECEIPT
CL--CLASS
SLMA--STUDENT LOAN MARKETING ASSOCIATION
(1) 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.
- --------------------------------------------------------------------------------
30
<PAGE>
[Graphic--Marquis "M" Logo]
MARCH 31, 1997
STATEMENT OF NET ASSETS
(UNAUDITED)
- --------------------------------------------------------------------------------
SMALL CAP EQUITY FUND
- ------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------------------------------
INVESTMENT COMPANY -- 100.1%
- ------------------------------------------------------------------
SEI International Managed Trust
Small Cap Growth Portfolio (A) 115,689 $1,562
------
TOTAL INVESTMENT COMPANY
(Cost $1,760) 1,562
------
TOTAL INVESTMENTS -- 100.1%
(Cost $1,760) 1,562
------
OTHER ASSETS AND LIABILITIES, NET -- (0.1%) (1)
------
- ------------------------------------------------------------------
NET ASSETS:
- ------------------------------------------------------------------
Fund Shares of Class A (unlimited
authorization -- no par value)
based on 180,932 outstanding shares
of beneficial interest 1,747
Fund Shares of Class B (unlimited
authorization -- no par value) based on
1,299 outstanding shares of beneficial
interest 12
Net unrealized depreciation on investments (198)
------
TOTAL NET ASSETS -- 100.0% $1,561
======
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $8.56
======
MAXIMUM OFFERING PRICE PER SHARE --
CLASS A ($8.56 / 96.50%) $8.87
======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS B (1) $8.56
======
- --------------------------------------------------------------------------------
(A) VARIABLE RATE INSTRUMENT. THE RATE REFLECTED IN THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON MARCH 31, 1997.
(1) CLASS B HAS A CONTINGENT DEFERRED SALES CHARGE. FOR A DESCRIPTION OF A
POSSIBLE SALES CHARGE, SEE NOTES TO THE FINANCIAL STATEMENTS.
- ------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- ------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------------------------------
INVESTMENT COMPANY --100.1%
- ------------------------------------------------------------------
SEI Institutional Trust
International Equity Portfolio (A) 82,911 $ 803
------
TOTAL INVESTMENT COMPANY
(Cost $802) 803
------
TOTAL INVESTMENTS -- 100.1%
(Cost $802) 803
------
OTHER ASSETS AND LIABILITIES, NET -- (0.1%) (1)
------
- ------------------------------------------------------------------
NET ASSETS:
- ------------------------------------------------------------------
Fund Shares of Class A (unlimited
authorization -- no par value)
based on 78,114 outstanding shares
of beneficial interest 789
Fund Shares of Class B (unlimited
authorization -- no par value)
based on 1,221 outstanding shares
of beneficial interest 12
Net unrealized appreciation on investments 1
------
TOTAL NET ASSETS -- 100.0% $ 802
======
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE-- CLASS A $10.10
=======
MAXIMUM OFFERING PRICE PER SHARE --
CLASS A ($10.10 / 96.50%) $10.47
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS B (1) $10.10
=======
- --------------------------------------------------------------------------------
(A) VARIABLE RATE INSTRUMENT. THE RATE REFLECTED IN THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON MARCH 31, 1997.
(1) 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.
- --------------------------------------------------------------------------------
31
<PAGE>
[Graphic--Marquis "M" Logo]
MARCH 31, 1997
(UNAUDITED)
STATEMENTS OF OPERATIONS (000)
<TABLE>
<CAPTION>
TREASURY STRATEGIC
INSTITUTIONAL SECURITIES TAX EXEMPT GOVERNMENT INCOME
MONEY MARKET MONEY MARKET MONEY MARKET SECURITIES BOND
FUND FUND FUND FUND FUND (2)
------------- ------------- ------------- ----------- ----------
10/1/96 10/1/96 10/1/96 10/1/96 1/31/97
TO 3/31/97 TO 3/31/97 TO 3/31/97 TO 3/31/97 TO 3/31/97
------------- ------------- ------------- ----------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $1,156 $30,265 $1,420 $4,931 $ 125
Dividend income -- -- -- -- --
-------- -------- -------- -------- ------
TOTAL INVESTMENT INCOME 1,156 30,265 1,420 4,931 125
-------- -------- -------- -------- ------
EXPENSES:
Administration fees 22 851 59 119 3
Less: waiver of administration fees -- (36) (10) (21) (3)
Investment advisory fees 33 1,701 177 437 13
Less: waiver of investment
advisory fees (28) -- (9) (28) (13)
Custodian 3 85 6 12 --
Transfer agent fees 7 34 7 18 4
Distribution fees (1) -- 599 99 2 --
Less: waiver of distribution fees (1) -- (120) (99) -- --
Professional fees 2 52 13 8 --
Registration fees 13 84 3 (1) 10
Trustee fees -- 9 1 1 --
Printing expense 1 26 2 4 --
Amortization of deferred organization costs -- 9 1 2 --
Rating fees -- 11 -- -- --
Insurance and other fees 1 10 6 5 2
------- -------- -------- -------- ------
TOTAL EXPENSES 54 3,315 256 558 16
------- -------- -------- -------- ------
LESS:
Reimbursement by Administrator -- -- -- -- --
------- -------- -------- -------- ------
NET INVESTMENT INCOME 1,102 26,950 1,164 4,373 109
------- -------- -------- -------- ------
NET REALIZED GAIN (LOSS) ON SECURITIES SOLD -- (2) -- (21) --
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
ON INVESTMENT SECURITIES -- -- -- (833) (406)
------- -------- -------- -------- ------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS -- (2) -- (854) (406)
------- -------- -------- -------- ------
INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ 1,102 $ 26,948 $ 1,164 $ 3,519 $ (297)
======= ======== ======== ======= ======
LOUISIANA
TAX-FREE VALUE GROWTH SMALL CAP INTERNATIONAL
INCOME BALANCED EQUITY EQUITY EQUITY EQUITY
FUND FUND FUND FUND FUND (3) FUND (3)
------- ---------- ---------- ---------- ------------ -----------
10/1/96 10/1/96 10/1/96 10/1/96 2/3/97 2/3/97
TO 3/31/97 TO 3/31/97 TO 3/31/97 TO 3/31/97 TO 3/31/97 TO 3/31/97
----------- ---------- ---------- ----------- ------------ -----------
INVESTMENT INCOME:
Interest income $569 $ 747 $1,293 $118 $ -- $ --
Dividend income -- 1,652 50 48 -- --
---- ------- ------ ---- ------ ------
TOTAL INVESTMENT INCOME 569 2,399 1,343 166 -- --
---- ------- ------ ---- ------ ------
EXPENSES:
Administration fees 17 88 79 17 -- --
Less: waiver of administration fees (3) (15) -- (3) -- --
Investment advisory fees 39 436 390 82 1 --
Less: waiver of investment
advisory fees -- (22) -- (5) (1) --
Custodian 2 9 8 2 -- --
Transfer agent fees 15 20 19 12 4 4
Distribution fees (1) 3 9 18 2 -- --
Less: waiver of distribution fees (1) -- -- -- -- -- --
Professional fees 1 6 4 1 -- --
Registration fees 1 -- 22 2 -- --
Trustee fees -- 1 1 -- -- --
Printing expense -- 3 2 1 -- --
Amortization of deferred organization costs -- 1 1 1 -- --
Rating fees -- -- -- -- -- --
Insurance and other fees 1 3 -- -- -- --
---- ------- ------ ---- ------ ------
TOTAL EXPENSES 76 539 544 112 4 4
---- ------- ------ ---- ------ ------
LESS:
Reimbursement by Administrator -- -- -- -- (4) (4)
---- ------- ------ ---- ------ ------
NET INVESTMENT INCOME 493 1,860 799 54 -- --
---- ------- ------ ---- ------ ------
NET REALIZED GAIN (LOSS) ON SECURITIES SOLD -- 6,639 8,789 526 -- --
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
ON INVESTMENT SECURITIES (9) (2,705) (993) (467) (198) 1
---- ------- ------ ---- ------ ------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (9) 3,934 7,796 59 (198) 1
---- ------- ------ ---- ------ ------
INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $484 $5,794 $8,595 $113 $ (198) $ 1
==== ======= ====== ==== ====== ======
<FN>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
(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) THE STRATEGIC INCOME BOND FUND COMMENCED OPERATIONS ON JANUARY 31, 1997.
(3) THE SMALL CAP EQUITY AND INTERNATIONAL EQUITY FUNDS COMMENCED OPERATIONS ON FEBRUARY 3, 1997.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
32 & 33
<PAGE>
[Graphic--Marquis "M" Logo]
MARCH 31, 1997
(UNAUDITED)
STATEMENTS OF CHANGES IN NET ASSETS (000)
<TABLE>
<CAPTION>
INSTITUTIONAL TREASURY SECURITIES TAX EXEMPT GOVERNMENT
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND SECURITIES FUND
---------------------- ---------------------- ------------------ ---------------------
10/1/96 10/1/95 10/1/96 10/1/95 10/1/96 TO 6/7/96 10/1/96 TO 10/1/95
TO 3/31/97 TO 9/30/96 TO 3/31/97 TO 9/30/96 3/31/97 TO 9/30/96 3/31/97 TO 3/31/96
---------------------- ---------------------- ------------------ ---------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net investment income $ 1,102 $ 1,510 $ 26,950 $ 46,002 $ 1,164 $ 469 $ 4,373 $ 8,530
Net realized gain (loss) on securities
sold -- -- (2) 8 -- -- (21) 169
Net unrealized appreciation (depreciation)
of investment securities -- -- -- -- -- -- (833) (3,474)
------- ------- --------- -------- ------ ----- ------- -------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING
FROM OPERATIONS 1,102 1,510 26,948 46,010 1,164 469 3,519 5,225
------- ------- --------- -------- ------ ----- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
Income distribution Class A (1) (1,102) (1,510) (15,842) (29,276) (1,161) (469) (4,358) (8,516)
Income distribution Class B (2) -- -- (11,106) (16,726) -- -- (15) (18)
Income distribution Class C (3) -- -- (2) -- -- -- -- --
Capital gain distribution Class A (1) -- -- -- -- -- -- -- --
Capital gain distribution Class B (2) -- -- -- -- -- -- -- --
------ ------ --------- -------- ------ ----- ------- -------
TOTAL DISTRIBUTIONS (1,102) (1,510) (26,950) 46,002 (1,161) (469) (4,373) (8,534)
------ ------ --------- -------- ------ ----- ------- -------
SHARE TRANSACTIONS:
Class A (1):
Shares issued 134,281 102,959 605,768 1,168,501 83,543 106,346 18,592 94,996
Shares issued in lieu of cash
distribution -- -- 316 184 591 222 2,202 4,408
Shares redeemed (89,223)(106,269) (594,268)(1,052,141) (70,204) (40,354) (32,710) (60,190)
------ ------- --------- --------- ------ ------ ------- -------
TOTAL CLASS A SHARE TRANSACTIONS 45,058 (3,310) 11,816 116,544 13,930 66,214 (11,916) 39,214
------ ------- --------- --------- ------ ------ ------- -------
Class B (2):
Shares issued -- -- 576,909 877,916 -- -- 151 310
Shares issued in lieu of cash
distribution -- -- 4,865 9,617 -- -- 14 17
Shares redeemed -- -- (465,027) (759,215) -- -- (20) (40)
------ ------- --------- -------- ------ ----- ------- -------
TOTAL CLASS B SHARE TRANSACTIONS -- -- 116,747 128,318 -- -- 145 287
------ ------- --------- -------- ------ ----- ------- -------
Class C (3):
Shares issued -- -- 761 -- -- -- -- --
Shares issued in lieu of cash distribution -- -- -- -- -- -- -- --
Shares redeemed -- -- (452) -- -- -- -- --
------ ------- --------- -------- ------ ----- ------- -------
TOTAL CLASS C SHARE TRANSACTIONS -- -- 309 -- -- -- -- --
------ ------- --------- -------- ------ ----- ------- -------
INCREASE (DECREASE) IN NET ASSETS FROM
SHAREHOLDER TRANSACTIONS 45,058 (3,310) 128,872 244,862 13,930 66,214 (11,771) 39,501
------ ------- --------- -------- ------ ------ ------- -------
TOTAL INCREASE (DECREASE) IN NET ASSETS 45,058 (3,310) 128,870 244,870 13,933 66,214 (12,625) 36,192
------ ------- --------- -------- ------ ------ ------- -------
(UNAUDITED)
STRATEGIC INCOME LOUISIANA TAX-FREE
BOND FUND (4) INCOME FUND BALANCED FUND
---------------- ---------------------- ----------------------
1/31/97 10/1/96 10/1/95 10/1/96 10/1/95
TO 3/31/97 TO 3/31/97 TO 9/30/96 TO 3/31/97 TO 9/30/96
--------------- ---------------------- -----------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net investment income $ 109 $ 493 $ 777 $ 1,860 $ 3,754
Net realized gain (loss) on securities sold -- -- (20) 6,639 4,170
Net unrealized appreciation (depreciation
of investment securities (406) (9) (37) (2,705) 1,350
------- ------- --------- -------- --------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (297) 484 720 5,794 9,274
------- ------- --------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
Income distribution Class A (1) (109) (478) (752) (1,817) (3,722)
Income distribution Class B (2) -- (15) (25) (30) (45)
Income distribution Class C (3) -- -- -- -- --
Capital gain distribution Class A (1) -- -- -- (4,877) (1,259)
Capital gain distribution Class B (2) -- -- -- (98) (17)
------- ------- --------- -------- --------
TOTAL DISTRIBUTIONS (109) (493) (777) (6,822) (5,043)
------- ------- --------- -------- --------
SHARE TRANSACTIONS:
Class A (1):
Shares issued 13,411 3,663 15,116 9,878 55,812
Shares issued in lieu of cash distribution 54 195 295 6,137 4,680
Shares redeemed (281) (2,626) (6,126) (13,189) (37,358)
------- ------- --------- -------- --------
TOTAL CLASS A SHARE TRANSACTIONS 13,184 1,232 9,285 2,826 23,134
------- ------- --------- -------- --------
Class B (2):
Shares issued 86 101 183 636 926
Shares issued in lieu of cash distribution -- 11 18 113 58
Shares redeemed -- (67) (37) (114) (182)
------- ------- --------- -------- --------
TOTAL CLASS B SHARE TRANSACTIONS 86 45 164 635 802
------- ------- --------- -------- --------
Class C (3):
Shares issued -- -- -- -- --
Shares issued in lieu of cash distribution -- -- -- -- --
Shares redeemed -- -- -- -- --
------- ------- --------- -------- --------
TOTAL CLASS C SHARE TRANSACTIONS -- -- -- -- --
------- ------- --------- -------- --------
INCREASE (DECREASE) IN NET ASSETS FROM SHAREHOLDER
TRANSACTIONS 13,270 1,277 9,449 3,461 23,936
------- ------- --------- -------- --------
TOTAL INCREASE (DECREASE) IN NET ASSETS 12,864 1,268 9,392 2,433 28,167
------- ------- --------- -------- --------
(UNAUDITED)
VALUE GROWTH EQUITY SMALL CAP INTERNATIONAL
EQUITY FUND FUND EQUITY FUND (5) EQUITY FUND (5)
---------------------- --------------------- --------------- --------------
10/1/96 10/1/95 10/1/96 3/1/96 2/3/97 2/3/97
TO 3/31/97 TO 9/30/96 TO 3/31/97 TO 9/30/96 TO 3/31/97 TO 3/31/97
---------------------- --------------------- --------------- --------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net investment income $ 799 $ 1,636 $ 54 $ 71 $ -- $ --
Net realized gain (loss) on securities sold 8,789 6,632 526 (73) -- --
Net unrealized appreciation (depreciation)
investment securities (993) 1,141 (467) 1,627 (198) 1
------- ------- ----- ----- ---- -----
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 8,595 9,409 113 1,625 (198) 1
------- ------- ----- ----- ---- -----
DISTRIBUTIONS TO SHAREHOLDERS:
Income distribution Class A (1) (778) (1,595) (54) (71) -- --
Income distribution Class B (2) (21) (40) -- -- -- --
Income distribution Class C (3) -- -- -- -- -- --
Capital gain distribution Class A (1) (5,915) (987) -- -- -- --
Capital gain distribution Class B (2) (269) (26) -- -- -- --
------- ------- ----- ----- ---- -----
TOTAL DISTRIBUTIONS (6,983) (2,648) (54) (71) -- --
------- ------- ----- ----- ---- -----
SHARE TRANSACTIONS:
Class A (1):
Shares issued 14,341 42,018 8,251 29,369 1,774 789
Shares issued in lieu of cash distribution 3,532 1,256 38 62 -- --
Shares redeemed (12,560) (15,165) (3,094) (12,578) (27) --
------- ------- ------ ------ ------ -----
TOTAL CLASS A SHARE TRANSACTIONS 5,313 28,109 5,195 16,853 1,747 789
------- ------- ------ ------ ------ -----
Class B (2):
Shares issued 1,121 2,725 633 145 12 12
Shares issued in lieu of cash distribution 264 60 -- -- -- --
Shares redeemed (162) (299) (17) -- -- --
------- ------- ----- ----- ---- -----
TOTAL CLASS B SHARE TRANSACTIONS 1,223 2,486 616 145 12 12
------- ------- ----- ----- ---- -----
Class C (3):
Shares issued -- -- -- -- -- --
Shares issued in lieu of cash distribution -- -- -- -- -- --
Shares redeemed -- -- -- -- -- --
------- ------- ----- ----- ---- -----
TOTAL CLASS C SHARE TRANSACTIONS -- -- -- -- -- --
------- ------- ----- ----- ---- -----
INCREASE (DECREASE) IN NET ASSETS FROM SHAREHOLDER
TRANSACTIONS 6,536 30,595 5,811 16,998 1,759 801
------- ------- ----- ------ ----- -----
TOTAL INCREASE (DECREASE) IN NET ASSETS 8,148 37,356 5,870 18,552 1,561 802
------- ------- ----- ------ ----- -----
<FN>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
(1) TRUST CLASS FOR TREASURY SECURITIES MONEY MARKET FUND.
(2) RETAIL CLASS FOR TREASURY SECURITIES MONEY MARKET FUND.
(3) CASH SWEEP CLASS FOR TREASURY SECURITIES MONEY MARKET FUND.
(4) THE STRATEGIC INCOME BOND FUND COMMENCED OPERATIONS ON JANUARY 31, 1997.
(5) THE SMALL CAP EQUITY AND INTERNATIONAL EQUITY FUNDS COMMENCED OPERATIONS ON FEBRUARY 3, 1997.
</FN>
</TABLE>
[Graphic-Marquis "M" Logo]
MARCH 31, 1997
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (000) (continued) (UNAUDITED)
INSTITUTIONAL TREASURY SECURITIES TAX EXEMPT GOVERNMENT
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND SECURITIES FUND
---------------------- --------------------- --------------------- --------------------
10/1/96 10/1/95 10/1/96 10/1/95 10/1/96 6/7/96 10/1/96 10/1/95
to 3/31/97 to 9/30/96 to 3/31/97 to 9/30/96 to 3/31/97 to 9/30/96 to 3/31/97 to 9/30/96
----------------------- --------------------- --------------------- --------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSETS:
Beginning of period $28,004 $31,314 $1,048,887 $804,017 $66,214 $ -- $160,840 $124,648
------- ------- ---------- --------- ------- ------- -------- --------
End of period $73,062 $28,004 $1,177,757 $1,048,887 $80,147 $66,214 $148,215 $160,840
======= ======= ========== ========== ======= ======= ======== ========
SHARES ISSUED AND REDEEMED:
Class A (1):
Issued 134,281 102,959 605,768 1,168,501 83,543 106,346 1,892 9,606
Issued in lieu of cash distribution -- -- 316 184 591 222 224 451
Redeemed (89,223) (106,269) (594,268) (1,052,141) (70,204) (40,354) (3,329) (6,148)
------- ------- ------- --------- ------ ------- -------- --------
TOTAL CLASS A SHARE TRANSACTIONS 45,058 (3,310) 11,816 116,544 13,930 66,214 (1,213) 3,909
------- ------- ------- --------- ------ ------- -------- --------
Class B (2):
Issued -- -- 576,909 877,916 -- -- 16 31
Issued in lieu of cash distribution -- -- 4,865 9,617 -- -- 1 2
Redeemed -- -- (465,027) (759,215) -- -- (2) (4)
------- ------- ------- --------- ------ ------- -------- -------
TOTAL CLASS B SHARE TRANSACTIONS -- -- 116,747 128,318 -- -- 15 29
------- ------- ------- --------- ------ ------- -------- -------
Class C (3):
Issued -- -- 761 -- -- -- -- --
Issued in lieu of cash distribution -- -- -- -- -- -- -- --
Redeemed -- -- (452) -- -- -- -- --
------- ------- ------- --------- ------ ------- -------- --------
TOTAL CLASS C SHARE TRANSACTIONS -- -- 309 -- -- -- -- --
------- ------- ------- --------- ------ ------- -------- --------
NET INCREASE (DECREASE) IN SHARE
TRANSACTIONS 45,058 (3,310) 128,872 244,862 13,930 66,214 (1,198) 3,938
======= ======= ======= ========= ====== ======= ======== ========
STRATEGIC INCOME LOUISIANA TAX-FREE VALUE
BOND FUND INCOME FUND BALANCED FUND EQUITY FUND
--------------- ----------------------- ---------------------- ---------------------
1/31/97 10/1/96 10/1/95 10/1/96 10/1/95 10/1/96 10/1/95
to 3/31/97 to 3/31/97 to 3/31/97 to 3/31/97 to 9/30/96 to 3/31/97 to 9/30/96
--------------- ----------------------- ---------------------- ----------------------
NET ASSETS:
Beginning of period $ -- $21,664 $12,272 $116,380 $ 88,213 $ 97,498 $ 60,142
------- ------- ------- -------- -------- --------- --------
End of period $12,864 $22,932 $21,664 $118,813 $116,380 $ 105,646 $ 97,498
======= ======= ======= ======== ======== ========= ========
SHARES ISSUED AND REDEEMED:
Class A (1):
Issued 1,342 369 1,540 851 5,030 1,063 3,370
Issued in lieu of cash distribution 6 20 30 543 420 272 101
Redeemed (28) (265) (627) (1,142) (3,351) (930) (1,219)
------- ------- ------- -------- -------- --------- --------
TOTAL CLASS A SHARE TRANSACTIONS 1,320 124 943 252 2,099 405 2,252
------- ------- ------- -------- -------- --------- --------
Class B (2):
Issued 9 11 18 55 83 83 218
Issued in lieu of cash distribution -- 1 2 10 5 20 5
Redeemed -- (7) (4) (10) (16) (12) (24)
------- ------- ------- -------- -------- --------- --------
TOTAL CLASS B SHARE TRANSACTIONS 9 5 16 55 72 91 199
------- ------- ------- -------- -------- --------- --------
Class C (3):
Issued -- -- -- -- -- -- --
Issued in lieu of cash distribution -- -- -- -- -- -- --
Redeemed -- -- -- -- -- -- --
------- ------- ------- -------- -------- --------- --------
TOTAL CLASS C SHARE TRANSACTIONS -- -- -- -- -- -- --
------- ------- ------- -------- -------- --------- --------
NET INCREASE (DECREASE) IN SHARE
TRANSACTIONS 1,329 129 959 307 2,171 496 2,451
======= ======= ======= ======== ======== ========= ========
GROWTH EQUITY SMALL CAP INTERNATIONAL
FUND EQUITY FUND EQUITY FUND
--------------------- ------------------ ----------------------
10/1/96 3/1/96 2/3/97 2/3/97
to 3/31/97 to 9/30/96 to 3/31/97 to 3/31/97
--------------------- ------------------ ----------------------
NET ASSETS:
Beginning of period $18,552 $ -- $ -- $ --
------- ------- -------- --------
End of period $24,422 $18,552 $ 1,561 $ 802
======= ======= ======== ========
SHARES ISSUED AND REDEEMED:
Class A (1):
Issued 647 2,638 184 78
Issued in lieu of cash distribution 3 5 -- --
Redeemed (245) (1,122) (3) --
------- ------- -------- --------
TOTAL CLASS A SHARE TRANSACTIONS 405 1,521 181 78
------- ------- -------- --------
Class B (2):
Issued 50 13 1 1
Issued in lieu of cash distribution -- -- -- --
Redeemed (2) -- -- --
------- ------- -------- --------
TOTAL CLASS B SHARE TRANSACTIONS 48 13 1 1
------- ------- -------- --------
Class C (3):
Issued -- -- -- --
Issued in lieu of cash distribution -- -- -- --
Redeemed -- -- -- --
------- ------- -------- --------
TOTAL CLASS C SHARE TRANSACTIONS -- -- -- --
------- ------- -------- --------
NET INCREASE (DECREASE) IN SHARE TRANSACTION 453 1,534 182 79
======= ======= ======== ========
</TABLE>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
(1) TRUST CLASS FOR TREASURY SECURITIES MONEY MARKET FUND.
(2) RETAIL CLASS FOR TREASURY SECURITIES MONEY MARKET FUND.
(3) CASH SWEEP CLASS FOR TREASURY SECURITIES MONEY MARKET FUND.
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
36 & 37
<PAGE>
[Graphic--Marquis "M" Logo]
MARCH 31, 1997
FINANCIAL HIGHLIGHTS (UNAUDITED)
<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING THROUGHOUT THE SIX-MONTH PERIOD ENDED MARCH 31, 1997 AND THE PERIODS ENDED SEPTEMBER 30.
NET ASSET REALIZED DISTRIBUTIONS
VALUE NET AND UNREALIZED FROM NET NET ASSET
BEGINNING INVESTMENT GAINS OR (LOSSES) INVESTMENT VALUE
OF PERIOD INCOME ON INVESTMENTS INCOME END OF PERIOD
- ---------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET FUND
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1997 $1.00 0.03 -- (0.03) $1.00
1996 1.00 0.05 -- (0.05) 1.00
1995(4) 1.00 0.01 -- (0.01) 1.00
- ---------------------------------------------------------------------------------------------------------------------------
TREASURY SECURITIES MONEY MARKET FUND
- ---------------------------------------------------------------------------------------------------------------------------
TRUST CLASS
1997 $1.00 0.02 -- (0.02) $1.00
1996 1.00 0.05 -- (0.05) 1.00
1995 1.00 0.05 -- (0.05) 1.00
1994 1.00 0.03 -- (0.03) 1.00
RETAIL CLASS
1997 $1.00 0.02 -- (0.02) $1.00
1996 1.00 0.05 -- (0.05) 1.00
1995 1.00 0.05 -- (0.05) 1.00
1994(1) 1.00 0.03 -- (0.03) 1.00
SWEEP CLASS
1997(10) $1.00 -- -- -- $1.00
- ---------------------------------------------------------------------------------------------------------------------------
TAX EXEMPT MONEY MARKET FUND
- ---------------------------------------------------------------------------------------------------------------------------
1997 $1.00 0.01 -- (0.01) $1.00
1996(5) 1.00 0.01 -- (0.01) 1.00
- ---------------------------------------------------------------------------------------------------------------------------
GOVERNMENT SECURITIES FUND
- ---------------------------------------------------------------------------------------------------------------------------
CLASS A
1997 $ 9.71 0.27 (0.07) (0.27) $9.64
1996 9.87 0.55 (0.16) (0.55) 9.71
1995 9.41 0.54 0.46 (0.54) 9.87
1994 10.00 0.43 (0.59) (0.43) 9.41
CLASS B
1997 $ 9.76 0.24 (0.07) (0.24) $9.69
1996 9.92 0.46 (0.15) (0.47) 9.76
1995 9.46 0.46 0.47 (0.47) 9.92
1994(2) 10.04 0.31 (0.58) (0.31) 9.46
- ---------------------------------------------------------------------------------------------------------------------------
<FN>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
+ TOTAL RETURN DOES NOT REFLECT SALES LOADS ON CLASS B AND RETAIL CLASS SHARES.
* ANNUALIZED.
** AVERAGE COMMISSION RATE PAID PER SHARE FOR SECURITY PURCHASES AND SALES
DURING THE PERIOD. PRESENTATION OF THE RATE IS ONLY REQUIRED FOR FISCAL
YEARS BEGINNING AFTER SEPTEMBER 1, 1995.
</FN>
</TABLE>
<TABLE>
<CAPTION>
INVESTMENT
RATIO OF NET EXPENSES TO INCOME TO PORT-
RATIO OF INVESTMENT AVERAGE NET AVERAGE FOLIO
NET ASSETS EXPENSES TO INCOME TO ASSETS NET ASSETS TURN-
TOTAL END OF AVERAGE AVERAGE (EXCLUDING (EXCLUDING OVER
RETURN+ PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
- -----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1997 5.12%* $73,062 0.25% 5.08% 0.38% 4.95% --
1996 5.33 28,004 0.25 5.19 0.34 5.10 --
1995(4) 5.55* 31,314 0.25* 5.56* 0.60* 5.21* --
- -----------------------------------------------------------------------------------------------------------------------------------
TREASURY SECURITIES MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------------------------------------------
TRUST CLASS
1997 4.86%* $649,634 0.50% 4.83% 0.51% 4.82% --
1996 5.06 637,819 0.50 4.92 0.53 4.89 --
1995 5.33 521,270 0.50 5.23 0.57 5.16 --
1994 3.22 403,778 0.50 3.15 0.60 3.05 --
RETAIL CLASS
1997 4.66%* $527,815 0.70% 4.63% 0.71% 4.62% --
1996 4.86 411,068 0.70 4.72 0.78 4.64 --
1995 5.16 282,747 0.68 5.12 0.82 4.98 --
1994(1) 3.15* 86,848 0.59* 3.27* 0.83* 3.03* --
SWEEP CLASS
1997(10) 4.32%* $308 1.10%* 4.23%* 1.11%* 4.22%* --
- -----------------------------------------------------------------------------------------------------------------------------------
TAX EXEMPT MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------------------------------------------
1997 2.96%* $80,147 0.65% 2.95% 0.95% 2.65% --
1996(5) 2.83* 66,214 0.65* 2.92* 1.12* 2.45* --
- -----------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT SECURITIES FUND
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A
1997 $ 2.06% $147,552 0.70% 5.49% 0.76% 5.43% 4.07%
1996 4.10 160,317 0.70 5.53 0.79 5.44 22.80
1995 10.84 124,404 0.70 5.63 0.84 5.49 18.33
1994 (1.66) 97,562 0.70 4.43 0.90 4.23 37.80
CLASS B
1997 $ 1.67% $663 1.45% 4.76% 1.51% 4.70% 4.07%
1996 3.23 523 1.45 4.81 1.54 4.72 22.80
1995 10.10 244 1.45 4.86 1.59 4.72 18.33
1994(2) (2.84)* 147 1.45* 3.88* 1.69* 3.64* 37.80
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(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 JUNE 7, 1996.
(6)COMMENCED OPERATIONS ON MARCH 1, 1996.
(7)COMMENCED OPERATIONS ON APRIL 19, 1996.
(8)COMMENCED OPERATIONS ON JANUARY 31, 1997.
(9)COMMENCED OPERATIONS ON FEBRUARY 3, 1997.
(10)COMMENCED OPERATIONS ON FEBRUARY 26, 1997.
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
38 & 39
<PAGE>
[Graphic--Marquis "M" Logo]
MARCH 31, 1997
FINANCIAL HIGHLIGHTS
(UNAUDITED)
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT THE SIX-MONTH PERIOD ENDED MARCH 31, 1997 AND
THE PERIODS ENDED SEPTEMBER 30.
<TABLE>
<CAPTION>
REALIZED DISTRI- DISTRIBU-
NET ASSET AND UNREALIZED BUTIONS TIONS
VALUE NET GAINS OR FROM NET FROM NET ASSET
BEGINNING INVESTMENT (LOSSES) INVESTMENT CAPITAL VALUE TOTAL
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS END OF PERIOD RETURN+
- ------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME BOND FUND
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A
1997 (8) $10.00 0.09 (0.32) (0.09) -- $9.68 (2.35)%
CLASS B
1997(8) $10.00 0.06 (0.29) (0.08) -- $9.69 (2.34)%
- ------------------------------------------------------------------------------------------------------------------
LOUISIANA TAX-FREE INCOME FUND
- ------------------------------------------------------------------------------------------------------------------
CLASS A
1997 $ 9.79 0.22 -- (0.22) -- $9.79 2.22%
1996 9.79 0.42 -- (0.42) -- 9.79 4.48
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)
CLASS B
1997 $ 9.79 0.18 0.01 (0.18) -- $9.80 1.95%
1996 9.79 0.35 -- (0.35) -- 9.79 3.60
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
1997 $11.31 0.18 0.40 (0.18) (0.50) $11.21 5.17%
1996 10.87 0.38 0.59 (0.38) (0.15) 11.31 9.11
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)
CLASS B
1997 $11.37 0.13 0.41 (0.14) (0.50) $11.27 4.79%
1996 10.93 0.30 0.59 (0.30) (0.15) 11.37 8.30
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)*
- ------------------------------------------------------------------------------------------------------------------
<FN>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
+ TOTAL RETURN DOES NOT REFLECT SALES LOADS ON CLASS B AND RETAIL CLASS SHARES.
* ANNUALIZED.
** AVERAGE COMMISSION RATE PAID PER SHARE FOR SECURITY PURCHASES AND SALES
DURING THE PERIOD. PRESENTATION OF THE RATE IS ONLY REQUIRED FOR FISCAL YEARS
BEGINNING AFTER SEPTEMBER 1, 1995.
</FN>
</TABLE>
<TABLE>
<CAPTION>
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT
RATIO OF INVESTMENT AVERAGE NET INCOME TO
NET ASSETS EXPENSES TO INCOME TO ASSETS AVERAGE PORTFOLIO AVERAGE
END OF AVERAGE AVERAGE (EXCLUDING NET ASSETS TURNOVER COMMISSION
PERIOD (000) NET ASSETS NET ASSETS WAIVERS) (EXCLUDING WAIVERS) RATE RATE**
- ---------------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME BOND FUND
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A
1997 (8) $12,779 0.90%* 6.23%* 1.79%* 5.34%* 0.08% n/a
CLASS B
1997(8) $85 1.70%* 5.88%* 3.25%* 4.33%* 0.08% n/a
- ---------------------------------------------------------------------------------------------------------------------------
LOUISIANA TAX-FREE INCOME FUND
- ---------------------------------------------------------------------------------------------------------------------------
CLASS A
1997 $22,159 0.65% 4.42% 0.67% 4.40% 0.02% n/a
1996 20,937 0.65 4.38 0.75 4.28 8.26 n/a
1995 11,705 0.65 4.51 0.95 4.21 2.31 n/a
1994 6,971 0.65 4.10 1.72 3.03 30.31 n/a
CLASS B
1997 $773 1.40% 3.67% 1.42% 3.65% 0.02% n/a
1996 727 1.40 3.62 1.50 3.52 8.26 n/a
1995 567 1.40 3.77 1.70 3.47 2.31 n/a
1994 (3) 601 1.40* 3.35* 2.47* 2.28* 30.31 n/a
- ---------------------------------------------------------------------------------------------------------------------------
BALANCED FUND
- ---------------------------------------------------------------------------------------------------------------------------
CLASS A
1997 $116,217 0.90% 3.17% 0.96% 3.11% 27.21% $.0796
1996 114,384 0.89 3.53 1.01 3.41 57.22 .0794
1995 87,076 0.85 3.70 1.04 3.51 55.06 n/a
1994 71,379 0.85 3.18 1.14 2.89 64.09 n/a
CLASS B
1997 $2,596 1.65% 2.42% 1.70% 2.37% 27.21% $.0796
1996 1,996 1.64 2.80 1.76 2.68 57.22 .0794
1995 1,137 1.60 2.95 1.79 2.76 55.06 n/a
1994 (2) 868 1.60* 2.55* 1.94* 2.21* 64.09 n/a
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
(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 JUNE 7, 1996.
(6)COMMENCED OPERATIONS ON MARCH 1, 1996.
(7)COMMENCED OPERATIONS ON APRIL 19, 1996.
(8)COMMENCED OPERATIONS ON JANUARY 31, 1997.
(9)COMMENCED OPERATIONS ON FEBRUARY 3, 1997.
(10)COMMENCED OPERATIONS ON FEBRUARY 26, 1997.
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
40 & 41
<PAGE>
[Graphic--Marquis "M" Logo]
MARCH 31, 1997
FINANCIAL HIGHLIGHTS
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING THROUGHOUT THE SIX MONTH PERIOD ENDED MARCH 31, 1997 AND THE PERIODS ENDED SEPTEMBER 30.
NET ASSET REALIZED DISTRIBUTIONS DISTRIBUTIONS
VALUE NET AND UNREALIZED FROM NET FROM NET ASSET
BEGINNING INVESTMENT GAINS OR (LOSSES) INVESTMENT CAPITAL VALUE TOTAL
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS END OF PERIOD RETURN+
- -----------------------------------------------------------------------------------------------------------------
VALUE EQUITY FUND
- -----------------------------------------------------------------------------------------------------------------
CLASS A
<S> <C> <C> <C> <C> <C> <C> <C>
1997 $12.93 0.10 1.02 (0.10) (0.81) $13.14 8.84%
1996 11.81 0.25 1.30 (0.25) (0.18) 12.93 13.38
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)
CLASS B
1997 $12.97 0.05 1.04 (0.06) (0.81) $13.19 8.51%
1996 11.86 0.17 1.29 (0.17) (0.18) 12.97 12.49
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
- -----------------------------------------------------------------------------------------------------------------
CLASS A
1997 $12.10 0.03 0.19 (0.03) -- $12.29 1.81%
1996 (6) 11.00 0.05 1.10 (0.05) -- 12.10 10.46
CLASS B
1997 $12.07 -- 0.19 -- -- $12.26 1.57%
1996 (7) 11.14 0.01 0.93 (0.01) -- 12.07 8.48
- -----------------------------------------------------------------------------------------------------------------
SMALL CAP EQUITY FUND++
- -----------------------------------------------------------------------------------------------------------------
CLASS A
1997(9) $10.00 -- (1.44) -- -- $8.56 (15.45)%
CLASS B
1997(9) $10.00 -- (1.44) -- -- $8.56 (15.65)%
- -----------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND+++
- -----------------------------------------------------------------------------------------------------------------
CLASS A
1997(9) $10.00 -- 0.10 -- -- $10.10 0.91%
CLASS B
1997(9) $10.00 -- 0.10 -- -- $10.10 0.64%
- -----------------------------------------------------------------------------------------------------------------
<FN>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
+ TOTAL RETURN DOES NOT REFLECT SALES LOADS ON CLASS B AND RETAIL CLASS SHARES.
++ TOTAL RETURN INCLUDES PERFORMANCE INFORMATION RELATING TO THE SEI SMALL CAP
EQUITY FUND FOR THE PERIOD JANUARY 1, 1997 THROUGH FEBRUARY 2, 1997. THE MARQUIS
SMALL CAP EQUITY FUND BEGAN INVESTMENT OPERATIONS ON FEBRUARY 3, 1997, INVESTS
SUBSTANTIALLY ALL OF ITS ASSETS IN THE SEI SMALL CAP EQUITY FUND AND CAN BE
EXPECTED TO HAVE A PERFORMANCE RECORD THAT CLOSELY RESEMBLES THAT OF THE SEI
SMALL CAP EQUITY FUND. THE TOTAL RETURN HAS BEEN ADJUSTED TO REFLECT THE ACTUAL
FEES AND EXPENSES OF THE MARQUIS SMALL CAP EQUITY FUND, WHICH FEES AND EXPENSES
ARE HIGHER THAN THOSE OF THE SEI SMALL CAP EQUITY FUND.
+++ TOTAL RETURN INCLUDES PERFORMANCE INFORMATION RELATING TO THE SEI
INTERNATIONAL EQUITY FUND FOR THE PERIOD JANUARY 1, 1997 THROUGH FEBRUARY 2,
1997. THE MARQUIS INTERNATIONAL EQUITY FUND BEGAN INVESTMENT OPERATIONS ON
FEBRUARY 3, 1997, INVESTS SUBSTANTIALLY ALL OF ITS ASSETS IN THE SEI
INTERNATIONAL EQUITY FUND AND CAN BE EXPECTED TO HAVE A PERFORMANCE RECORD THAT
CLOSELY RESEMBLES THAT OF THE SEI INTERNATIONAL EQUITY FUND. THE TOTAL RETURN
HAS BEEN ADJUSTED TO REFLECT THE ACTUAL FEES AND EXPENSES OF THE MARQUIS
INTERNATIONAL EQUITY FUND, WHICH FEES AND EXPENSES ARE HIGHER THAN THOSE OF THE
SEI INTERNATIONAL EQUITY FUND.
</FN>
</TABLE>
<TABLE>
<CAPTION>
RATIO OF NET RATIO OF RATIO OF
INVESTMENT EXPENSES TO INVESTMENT
RATIO OF INCOME AVERAGE NET INCOME (LOSS)
NET ASSETS EXPENSES TO (LOSS) ASSETS TO AVERAGE PORTFOLIO AVERAGE
END OF AVERAGE TO AVERAGE (EXCLUDING NET ASSETS TURNOVER COMMISSION
PERIOD (000) NET ASSETS NET ASSETS WAIVERS) (EXCLUDING WAIVERS) RATE RATE**
- ---------------------------------------------------------------------------------------------------------------------------
VALUE EQUITY FUND
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A
1997 $100,388 1.00% 1.55% 1.00% 1.55% 49.81% $.0799
1996 93,508 0.97 2.12 1.02 2.07 95.93 .0795
1995 58,854 0.90 2.40 1.07 2.23 97.88 n/a
1994 41,922 0.90 1.95 1.17 1.68 161.42 n/a
CLASS B
1997 $5,258 1.75% 0.80% 1.75% 0.80% 49.81% $.0799
1996 3,990 1.73 1.37 1.77 1.33 95.93 .0795
1995 1,288 1.65 1.62 1.82 1.45 97.88 n/a
1994 (2) 389 1.65* 1.30* 1.93* 1.02* 161.42 n/a
- ---------------------------------------------------------------------------------------------------------------------------
GROWTH EQUITY FUND
- ---------------------------------------------------------------------------------------------------------------------------
CLASS A
1997 $23,676 1.00% 0.50% 1.06% 0.44% 41.22% $.0800
1996 (6) 18,400 1.00* 0.73* 1.12* 0.61* 91.09 .0797
CLASS B
1997 $746 1.75% (0.23)% 1.81% (0.29)% 41.22% $.0800
1996 (7) 152 1.75* (0.02)* 1.87* (0.14)* 91.09 .0797
- ---------------------------------------------------------------------------------------------------------------------------
SMALL CAP EQUITY FUND++
- ---------------------------------------------------------------------------------------------------------------------------
CLASS A
1997(9) $1,550 0.20%* (0.20)%* 3.71%* (3.71)%* -- --
CLASS B
1997(9) $11 0.95%* (0.95)%* 1.08%* (1.08)%* -- --
- ---------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND+++
- ---------------------------------------------------------------------------------------------------------------------------
CLASS A
1997(9) $790 0.27%* (0.27)%* 4.36%* (4.36)%* -- --
CLASS B
1997(9) $12 1.02%* (1.02)%* 1.44%* (1.44)%* -- --
- ---------------------------------------------------------------------------------------------------------------------------
<FN>
* ANNUALIZED.
** AVERAGE COMMISSION RATE PAID PER SHARE FOR SECURITY PURCHASES AND SALES
DURING THE PERIOD. PRESENTATION OF THE RATE IS ONLY REQUIRED FOR FISCAL YEARS
BEGINNING AFTER SEPTEMBER 1, 1995.
(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 JUNE 7, 1996.
(6)COMMENCED OPERATIONS ON MARCH 1, 1996.
(7)COMMENCED OPERATIONS ON APRIL 19, 1996.
(8)COMMENCED OPERATIONS ON JANUARY 31, 1997.
(9)COMMENCED OPERATIONS ON FEBRUARY 3, 1997.
(10)COMMENCED OPERATIONS ON FEBRUARY 26, 1997.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
42 & 43
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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, asamended, as an open-end management
company with eleven series funds:Institutional Money Market Fund, Treasury
Securities Money Market Fund, Tax Exempt Money Market Fund (the "Money Market
Funds"), Government Securities Fund, Strategic Income Bond Fund, Louisiana
Tax-Free Income Fund, Balanced Fund (formerly the "Growth and Income Fund"),
Value Equity Fund, Growth Equity Fund, Small Cap Equity Fund, and International
Equity Fund (the "Non-Dollar Funds"). Each Fund's prospectus provides a
description of the Fund's investment objectives, policies and strategies. The
assets of each Fund are segregated, and a shareholder's interest is limited to
the Fund in which shares are held. The Trust is registered to offer the
following classes of shares: Trust, Retail, and the Cash Sweep Class in the
Treasury Securities Money Market Fund, and Class A and Class B in the Non-Dollar
Funds.
The Small Cap Equity Fund and the International Equity Fund are currently
"feeder" funds in separate Corporate Master-Feeder(TM) structures. That is, the
Small Cap Equity Fund and International Equity Fund each currently invest in
another open-end management investment company with the same investment
objectives and hold as their only investment securities, shares of a single
"master" fund, in this case, the SEI Institutional Managed Trust Small Cap
Growth Portfolio and the SEI International Trust International Equity Portfolio,
respectively. However, in certain instances the Funds are permitted to invest in
securities other than a single open-end management investment company.
2. SIGNIFICANT ACCOUNTING POLICIES
- ------------------------------------
The following is a summary of the significant accounting policies followed by
the Funds.
SECURITIES VALUATION -- Investments in equity securities that 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
exceeding sixty days to maturity for which market quotations are readily
available are valued at the most recently quoted bid price. Debt obligations
with sixty days or less remaining until maturity 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 valued at fair value using methods determined in good faith as
approved by the Board of Trustees.
The investments of the Small Cap Equity and International Equity Funds, (the
"Feeder" funds), in the SEI Institutional Managed Trust Small Cap
- --------------------------------------------------------------------------------
44
<PAGE>
[Graphic--Marquis "M" Logo]
MARCH 31, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
Equity Fund and the SEI International Trust International Equity Fund (the
"Master Funds"), respectively, are valued at the price of each Master Fund
determined as of the close of the New York Stock Exchange (generally 4:00 p.m.).
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, and
to distribute all of its taxable income and net capital gains. Accordingly, no
provision for federal income taxes has been made in the accompanying financial
statements.
SECURITY TRANSACTIONS AND RELATED INCOME -- Security transactions are accounted
for on the date the security is purchased or sold (trade date). Dividend income
is recognized on the ex-dividend date and interest income is recognized on 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 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
agreements are held by the custodian bank until the respective agreements
mature. Provisions of the repurchase agreements ensure that the market value of
the collateral, including accrued interest thereon, is sufficient in the event
of default of the counterparty. 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
maturity of the repurchase agreement. If the counterparty defaults and the value
of the collateral declines, or if the counterparty enters an insolvency
proceeding, realization of the collateral by the Funds may be delayed or
limited.
NET ASSET VALUE PER SHARE -- The net asset value per share of each Fund is
calculated 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.
EXPENSES -- Expenses that are directly related to one of the Funds are charged
directly to that Fund. Other operating expenses are prorated to the Funds on the
basis of relative net assets. Class specific expenses are borne by that class.
Income, expenses, and realized and unrealized gains/losses are allocated to the
respective classes on the basis of relative daily net assets.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS -- The preparation
of financial statements, in conformity with generally accepted accounting
principles, requires management to make estimates and assumptions that affect
the reported amount of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported
- --------------------------------------------------------------------------------
45
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
amounts of revenue and expenses during the reporting period. Actual results
could differ from those estimates.
OTHER -- Distributions from net investment income are declared and paid
quarterly for the Balanced Fund, Value Equity Fund, Growth Equity Fund and Small
Cap Equity Fund. Distributions from net investment income are declared daily and
paid monthly for the Institutional Money Market Fund, Treasury Securities Money
Market Fund, and Tax Exempt Money Market Fund. Distributions from net investment
income are declared and paid monthly for the Government Securities Fund,
Strategic Income Bond Fund and Louisiana Tax-Free Income Fund. The International
Equity Fund's distributions from net investment income are declared and paid in
accordance with the SEI International Equity 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, that 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%, Tax
Exempt Money Market Fund -- .45%, Government Securities Fund -- .55%, Strategic
Income Bond Fund -- .74%, Louisiana Tax-Free Income Fund -- .35%, Balanced Fund
- -- .74%, Value Equity Fund -- .74%, Growth Equity Fund -- .74%, Small Cap Equity
Fund -- .40%, and International Equity Fund -- .40%. The Adviser has voluntarily
agreed to waive a portion of its fee so that expenses of each Fund will not
exceed certain annual expense limitations. The Adviser reserves the right to
terminate its waiver at any time in its sole discretion.
Weiss, Peck & Greer, L.L.C. serves as the investment sub-adviser for the Tax
Exempt Money Market Fund pursuant to a sub-advisory agreement with the Adviser.
The sub-advisory fees are paid by the Adviser.
The Trust and SEI Fund Resources (the "Administrator") have entered into an
Administration Agreement. SEI Financial Management Corporation, a wholly-owned
subsidiary of SEI Corporation, is the owner of all beneficial interest in the
Administrator. Under terms of the Administration Agreement, the Administrator is
entitled to a fee calculated daily and paid monthly at an annual rate of .10% of
the average daily net assets of the Institutional Money Market Fund and .15% of
the average daily net assets of the Treasury Securities Money Market Fund, Tax
Exempt Money Market Fund, Government Securities Fund, Strategic Income Bond
Fund, Louisiana Tax-Free Income Fund, Balanced Fund, Value Equity Fund, Growth
Equity Fund, Small Cap Equity Fund, and International Equity Fund. The
Administrator has voluntarily agreed to
- --------------------------------------------------------------------------------
46
<PAGE>
[Graphic--Marquis "M" Logo]
MARCH 31, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
waive a portion of its fee so that expenses of each Fund will not exceed certain
annual expense limitations. The Administrator reserves the right to terminate
its waiver at any time in its sole discretion.
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 annual rate of
.25% of the average daily net assets of the Retail class of Treasury 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 Distributor 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 Distributor reserves the
right to terminate its waiver at any time in its sole discretion.
In addition to the fees paid at the feeder level for the Small Cap Equity and
International Equity Funds, each Feeder Fund's shareholders will bear indirectly
their prorata portion of the advisory, administrative, distribution and other
expenses of the respective Master Funds in which they invest.
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.
CONTINGENT DEFERRED SALES
CHARGE AS A PERCENTAGE
YEAR SINCE OF DOLLAR AMOUNT
PURCHASE SUBJECT TO CHARGE
-------------- -------------------------
First 3.50%
Second 2.75%
Third 2.00%
Fourth 1.25%
Fifth 0.50%
Sixth None
4. ORGANIZATIONAL COSTS AND TRANSACTIONS WITH AFFILIATES
- --------------------------------------------------------
Organizational costs have been capitalized by the Funds and are being amortized
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 period that
the Funds are amortizing their organizational costs, the redemption proceeds
payable to the holder thereof will be reduced by the unamortized organizational
costs in the same ratio as the number of initial shares being redeemed bears to
the number of initial shares outstanding at the time of 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. Certain
officers and trustees of the Trust who are officers of the Administrator and the
Distributor received no compensation from the Trust.
- --------------------------------------------------------------------------------
47
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
5. INVESTMENT TRANSACTIONS
- --------------------------
The cost of security purchases and the proceeds from the sale of securities,
other than short-term investments, for the period ended March 31, 1997 were as
follows:
STRATEGIC LOUISIANA
GOVERNMENT INCOME TAX-FREE
SECURITIES BOND INCOME BALANCED
FUND FUND FUND FUND
(000) (000) (000) (000)
------------ ---------- ---------- ----------
PURCHASES:
U.S.
Government $6,055 $5,054 $ -- $ 2,982
Other -- 7,080 994 27,911
SALES:
U.S.
Government $6,051 $ 6 $ -- $ 3,969
Other 5,102 -- 5 31,335
VALUE GROWTH SMALL CAP INTERNATIONAL
EQUITY EQUITY EQUITY EQUITY
FUND FUND FUND FUND
(000) (000) (000) (000)
---------- ---------- ---------- -------------
PURCHASES:
U.S.
Government $ -- $ -- $ -- $ --
Other 57,596 12,975 1,760 802
SALES:
U.S.
Government $ -- $ -- $ -- $ --
Other 51,168 8,306 -- --
On March 31, 1997, 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, 1997, for each Non-Dollar Fund is as follows:
STRATEGIC LOUISIANA
GOVERNMENT INCOME TAX-FREE
SECURITIES BOND INCOME BALANCED
FUND FUND FUND FUND
(000) (000) (000) (000)
---------- ---------- ---------- ----------
Aggregate Gross
Unrealized
Appreciation $ 471 $ -- $ 166 $9,284
Aggregate Gross
Unrealized
Depreciation (4,909) (406) (183) (4,140)
------- ------- ------- -------
Net Unrealized
Appreciation/
(Depreciation) $(4,438) $ (406) $ (17) $5,144
======= ======= ======= =======
VALUE GROWTH SMALL CAP INTERNATIONAL
EQUITY EQUITY EQUITY EQUITY
FUND FUND FUND FUND
(000) (000) (000) (000)
---------- ---------- ---------- ----------
Aggregate Gross
Unrealized
Appreciation $12,039 $2,107 $ -- $4
Aggregate Gross
Unrealized
Depreciation (3,312) (95) (198) (3)
------- ------- ------- -------
Net Unrealized
Appreciation/
(Depreciation) $ 8,727 $ 1,160 $ (198) $1
======= ======= ======= =======
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 believed
to be of comparable quality.
The Tax Exempt Money Market Fund invests in debt instruments of municipal
issuers. The issuers' ability to meet their obligations may be affected by
economic developments in a specific state or region.
- ----------------------------------------------------------------------
48
<PAGE>
[Graphic--Marquis "M" Logo]
MARCH 31, 1997
(UNAUDITED)
The Tax Exempt Money Market Fund invests in securities that include revenue
bonds, tax and revenue anticipation notes, and general obligation bonds. At
March 31, 1997, the percentages of portfolio investments by each revenue source
were as follows:
TAX EXEMPT
MONEY MARKET FUND
--------------------
Revenue Bonds 79%
Anticipation Notes 10%
General Obligations 9%
Pre-Refunded Securities 2%
--------------------
Total 100%
====================
The Government Securities, Strategic Income Bond 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
securities.
The following table presents a summary of holdings in the Government Securities,
Strategic Income Bond and Louisiana Tax-Free Income Funds as of March 31, 1997.
STRATEGIC LOUISIANA
GOVERNMENT INCOME TAX-FREE
SECURITIES BOND INCOME
RATING/SECURITY CATEGORY FUND FUND FUND
- ------------------------ -------------- ---------- ----------
U.S. Government Security 90.1% 38.8% 0.00%
AAA 0.0% 0.0% 80.1%
AA 0.9% 4.2% 0.0%
A 2.0% 36.1% 1.7%
BBB 0.0% 13.1% 0.0%
Not Rated 7.0% 7.8% 18.2%
---------- ---------- ----------
100% 100% 100%
========== ========== ==========
These 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 Not Rated
above.
7. CAPITAL LOSS CARRY FORWARDS
- ------------------------------
The Funds had capital loss carryforwards and post-October deferred losses at
September 30, 1996, to the extent provided in the regulations for federal income
tax as follows:
POST
CAPITAL LOSS OCTOBER 31,
CARRY FORWARDS EXPIRING 1995
---------------------------- DEFERRED
FUNDS 2003 2004 LOSSES
- -------- ---------------------------- ------------
Government
Securities Fund $679,660 $124,634 $--
Louisiana Tax-Free
Income Fund 32,125 2,083 19,720
Growth Equity Fund -- -- 73,265
For tax purposes, capital losses can be carried forward for a maximum of
eight years to offset any future net realized capital gains. Post-October
deferred losses have been deferred to fiscal year 1997 for tax purposes.
- --------------------------------------------------------------------------------
49
<PAGE>
NOTES
<PAGE>
[Graphic--Marquis "M" Logo]
MARCH 31, 1997
(UNAUDITED)
NOTES
<PAGE>
NOTES
<PAGE>
[MARQUIS LOGO OMITTED]
High Quality. High Standards. Highly Personal.
INVESTMENT ADVISER
FIRST NATIONAL BANK OF COMMERCE IN NEW ORLEANS
201 ST. CHARLES AVENUE
NEW ORLEANS, LA 70170
ADMINISTRATOR
SEI FUND RESOURCES
OAKS, PA 19456
TRANSFER AGENT
DST SYSTEMS, INC.
210 WEST 10TH STREET
KANSAS CITY, MO 64105
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:
NOT FDIC INSURED -- NO BANK GUARANTEE -- MAY LOSE VALUE
- --------------------------------------------------------------------------------
THE FIRST NBCTRUST 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, LLC, OR ANY AFFILIATES THEREOF.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS.
(C) 1996, SEI FINANCIAL SERVICES COMPANY MRQ-F-005-04
