[ART OMITTED]
SEMI-
ANNUAL
REPORT
MARCH 31, 1998
MARQUIS[SERVICE MARK]
FAMILY OF FUNDS
High Quality. High Standards. Highly Personal.
[ART OMITTED]
<PAGE>
TABLE OF CONTENTS
Letter to Shareholders 1
Statements of Net Assets 2
Statement of Assets and Liabilities 33
Statements of Operations 34
Statements of Changes in Net Assets 36
Financial Highlights 40
Notes to Financial Statements 46
FUND PORTFOLIOS TRADING SYMBOLS
MONEY MARKET FUNDS TRUST RETAIL
Institutional Money Market Fund N/A N/A
Treasury Securities Money Market Fund MQTXX MQRXX
Tax Exempt Money Market Fund MQEXX MQEXX
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>
LETTER TO SHAREHOLDERS
DEAR SHAREHOLDER:
During the six-month period ended March 31, 1998, the financial markets
continued to perform well overall, as the three major asset classes -- stocks,
bonds, and money market instruments -- all produced healthy gains. Once again,
these gains were fueled by exceptionally favorable economic conditions,
including moderate growth, low inflation, and stable interest rates.
The Marquis Funds participated fully in this ongoing rally, generating positive
returns nearly across the board. The Marquis Value Equity Fund performed
particularly well, and has gained national attention recently for its truly
outstanding track record.
On October 20, 1997, First Commerce Corporation -- the parent of First National
Bank of Commerce in New Orleans, the Marquis Funds' investment adviser -- and
Banc One Corporation, the parent of Banc One, Louisiana, announced that they
have signed a definitive agreement for the merger of First Commerce with Banc
One. Subject to certain conditions being met, it is currently anticipated that
First Commerce will merge with Banc One by the end of June 1998.
The organization that results from this merger will be a strong one, with
extensive investment management resources and a time-tested record of
performance. In months ahead, we will endeavor to help our shareholders take
advantage of these resources.
As always, we thank you for your continued trust in our organization, and look
forward to serving you in the future.
Sincerely,
/S/Signature
Suzanne T. Mestayer
Executive Vice President
First National Bank of Commerce
MARCH 31, 1998 1
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
INSTITUTIONAL MONEY MARKET FUND
==========================================
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------
U.S. TREASURY OBLIGATIONS -- 21.7%
U.S. Treasury Bill
5.386%, 04/16/98 $15,000 $ 14,966
U.S. Treasury Notes
4.750%, 09/30/98 4,000 3,987
5.750%, 12/31/98 4,000 4,008
5.875%, 03/31/99 2,000 2,008
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $24,969) 24,969
--------
REPURCHASE AGREEMENTS -- 78.7%
DEUTSCHE BANK
5.900%, dated 03/31/98, matures
04/01/98, repurchase price
$4,602,175 (collateralized by
U.S. Treasury Obligations,
total market value:
$4,693,725) (1) 4,601 4,601
HSBC
5.830%, dated 03/31/98, matures
04/01/98, repurchase price
$5,000,810 (collateralized
by U.S. Treasury STRIPS,
total market value:
$5,121,412) 5,000 5,000
LEHMAN BROTHERS
5.900%, dated 03/31/98, matures
04/01/98, repurchase price
$28,004,589 (collateralized by
various U.S. Treasury
STRIPS, total market
value: $28,707,761) 28,000 28,000
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------
MERRILL LYNCH
5.850%, dated 03/31/98, matures
04/01/98, repurchase price
$3,119,656 (collateralized by
U.S. Treasury Bond, total
market value:
$3,186,674) (1) $ 3,119 $ 3,119
J.P. MORGAN
5.980%, dated 03/31/98, matures
04/01/98, repurchase price
$28,004,651 (collateralized by
U.S. Treasury STRIPS, total
market value:
$28,615,098) 28,000 28,000
MORGAN STANLEY
5.870%, dated 03/31/98, matures
04/01/98, repurchase price
$3,180,248 (collateralized
by various U.S. Treasury
Notes, total market
value: $3,262,193) (1) 3,180 3,180
NOMURA SECURITIES
5.900%, dated 03/31/98, matures
04/01/98, repurchase price
$4,253,300 (collateralized by
U.S. Treasury Obligations,
total market value:
$4,338,343) (1) 4,253 4,253
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
2 MARCH 31, 1998
<PAGE>
INSTITUTIONAL MONEY MARKET FUND
==========================================
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------
PRUDENTIAL SECURITIES
5.950%, dated 03/31/98, matures
04/01/98, repurchase price
$5,000,826 (collateralized by
U.S. Treasury Bill, total
market value:
$5,107,143) $5,000 $ 5,000
UBS SECURITIES
5.920%, dated 03/31/98, matures
04/01/98, repurchase price
$4,646,443 (collateralized by
U.S. Treasury STRIPS, total
market value:
$4,741,279) (1) 4,646 4,646
WACHOVIA
5.700%, dated 03/31/98, matures
04/01/98, repurchase price
$5,000,792 (collateralized by
U.S. Treasury Note, total
market value:
$5,102,656) 5,000 5,000
--------
TOTAL REPURCHASE AGREEMENTS
(Cost $90,799) 90,799
--------
TOTAL INVESTMENTS -- 100.4%
(Cost $115,768) 115,768
--------
OTHER ASSETS AND LIABILITIES,
NET -- (0.4%) (418)
--------
DESCRIPTION VALUE (000)
- ------------------------------------------
NET ASSETS:
FUND SHARES
(unlimited authorization -- no
par value) based on 115,350,112
outstanding shares of
beneficial interest $115,350
========
TOTAL NET ASSETS -- 100.0% $115,350
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $1.00
========
- ------------------------------------------
STRIPS--SEPARATE TRADING OF REGISTERED INTEREST
AND PRINCIPAL OF SECURITIES
(1) TRI-PARTY REPURCHASE AGREEMENT
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
MARCH 31, 1998 3
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
TREASURY SECURITIES MONEY MARKET FUND
===============================================
DESCRIPTION PAR (000) VALUE (000)
- -----------------------------------------------
U.S. TREASURY OBLIGATIONS -- 17.6%
U.S. Treasury Bill
5.393%, 04/16/98 $ 90,000 $ 89,799
U.S. Treasury Notes
4.750%, 09/30/98 50,000 49,838
5.750%, 12/31/98 50,000 50,104
5.875%, 03/31/99 25,000 25,099
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $214,840) 214,840
----------
REPURCHASE AGREEMENTS -- 82.5%
DEUTSCHE BANK
5.900%, dated 03/31/98, matures
04/01/98, repurchase price
$57,947,216 (collateralized by
various U.S. Treasury Obligations,
total market value:
$59,096,804) (1) 57,938 57,938
HSBC
5.830%, dated 03/31/98, matures
04/01/98, repurchase price
$50,008,097 (collateralized by
various U.S. Treasury STRIPS,
total market value:
$51,154,496) 50,000 50,000
DESCRIPTION PAR (000) VALUE (000)
- -----------------------------------------------
LEHMAN BROTHERS
5.900%, dated 03/31/98, matures
04/01/98, repurchase price
$295,048,347 (collateralized by
various U.S. Treasury
STRIPS, total market
value: $303,839,884) $295,000 $ 295,000
MORGAN STANLEY
5.870%, dated 03/31/98, matures
04/01/98, repurchase price
$50,038,717 (collateralized by
various U.S. Treasury
Obligations, total market
value: $51,708,576) (1) 50,030 50,030
J.P. MORGAN
5.980%, dated 03/31/98, matures
04/01/98, repurchase price
$295,049,003 (collateralized
by various U.S. Treasury
STRIPS, total market
value: $301,604,985) 295,000 295,000
MERRILL LYNCH
5.850%, dated 03/31/98, matures
04/01/98, repurchase price
$50,038,689 (collateralized by
various U.S. Treasury
Obligations, total market
value: $51,035,097) (1) 50,031 50,031
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
4 MARCH 31, 1998
<PAGE>
TREASURY SECURITIES MONEY MARKET FUND
===============================================
DESCRIPTION PAR (000) VALUE (000)
- -----------------------------------------------
NOMURA SECURITIES
5.900%, dated 03/31/98, matures
04/01/98, repurchase price
$53,173,099 (collateralized by
various U.S. Treasury
Obligations, total market
value: $54,228,352) (1) $53,164 $ 53,164
PRUDENTIAL SECURITIES
5.950%, dated 03/31/98, matures
04/01/98, repurchase price
$50,008,264 (collateralized by
various U.S. Treasury
Obligations, total market
value: $51,047,136) 50,000 50,000
UBS SECURITIES
5.920%, dated 03/31/98, matures
04/01/98, repurchase price
$57,858,108 (collateralized by
various U.S. Treasury
Obligations, total market
value: $59,006,372) (1) 57,849 57,849
WACHOVIA
5.700%, dated 03/31/98, matures
04/01/98, repurchase price
$50,007,917 (collateralized by
various U.S. Treasury Obligations,
total market value:
$51,006,454) 50,000 50,000
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $1,009,012) 1,009,012
----------
TOTAL INVESTMENTS -- 100.1%
(Cost $1,223,852) 1,223,852
----------
OTHER ASSETS AND LIABILITIES,
NET -- (0.1%) (920)
----------
DESCRIPTION VALUE (000)
- -----------------------------------------------
NET ASSETS:
FUND SHARES OF TRUST CLASS
(unlimited authorization --
no par value) based on
409,380,792 outstanding
shares of beneficial interest $ 409,381
FUND SHARES OF RETAIL CLASS
(unlimited authorization --
no par value) based on
610,475,941 outstanding
shares of beneficial interest 610,476
FUND SHARES OF CASH SWEEP CLASS
(unlimited authorization --
no par value) based
on 203,050,377 outstanding
shares of beneficial interest 203,050
Accumulated net realized gain
on investments 25
----------
TOTAL NET ASSETS -- 100.0% $1,222,932
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
SHARE -- TRUST CLASS $1.00
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
SHARE -- RETAIL CLASS $1.00
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
SHARE -- CASH SWEEP CLASS $1.00
==========
- -----------------------------------------------
STRIPS--SEPARATE TRADING OF REGISTERED INTEREST
AND PRINCIPAL OF SECURITIES
(1) TRI-PARTY REPURCHASE AGREEMENT
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
MARCH 31, 1998 5
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
TAX EXEMPT MONEY MARKET FUND
===============================================
DESCRIPTION PAR (000) VALUE (000)
- -----------------------------------------------
MUNICIPAL BONDS -- 99.2%
ARIZONA -- 1.5%
Phoenix, Multi-Family
Housing Authority, Del Mar
Terrace Apartments Project,
VRDN, RB (A) (B) (C)
3.750%, 04/07/98 $ 2,000 $ 2,000
----------
CALIFORNIA -- 6.8%
California State, RAN
4.500%, 06/30/98 4,230 4,237
Los Angeles County,
Series A, TRAN
4.500%, 06/30/98 5,000 5,009
----------
9,246
----------
COLORADO -- 3.7%
Denver City & County,
Ogden Residence Project,
VRDN, RB (A) (B) (C)
3.850%, 04/01/98 300 300
Eagle County, Smith Creek
Metropolitan District
Project, Series 95, VRDN,
RB (A) (B) (C)
3.500%, 04/07/98 2,400 2,400
University of Colorado,
Series A, VRDN, RB (A)
3.700%, 04/07/98 2,300 2,300
----------
5,000
----------
DISTRICT OF COLUMBIA -- 0.1%
District of Columbia,
Series B-1, VRDN,
RB (A) (B) (C)
3.850%, 04/01/98 100 100
----------
FLORIDA -- 4.3%
Broward County, Housing
Finance Authority,
Lake Park Association,
VRDN, RB (A) (B) (C)
3.700%, 04/07/98 3,410 3,410
DESCRIPTION PAR (000) VALUE (000)
- -----------------------------------------------
Orange County, Industrial
Development Authority,
Orlando Hawaiian Motel,
VRDN, RB (A) (B) (C)
3.900%, 04/01/98 $ 530 $ 530
Palm Beach County, Jewish
Community Campus
Corporation, VRDN,
RB (AMBAC) (A) (B)
3.650%, 04/07/98 1,600 1,600
Pinellas County, Health
Facilities Authority,
Hospital Program,
VRDN, RB (A) (B) (C)
3.700%, 04/01/98 300 300
----------
5,840
----------
GEORGIA -- 5.3%
Burke County, Oglethorpe
Power Project, TECP
3.450%, 05/29/98 3,000 3,000
Floyd County, Georgia
Power Plant Hammond
Project, VRDN, RB (A) (B)
3.900%, 04/01/98 950 950
Gorden County, Hospital
Authority, Adventist Health
System, Series A, VRDN,
RAN (A) (B) (C)
3.750%, 04/07/98 1,325 1,325
Marietta, Multi-Family
Housing, Falls at Bells
Ferry Project, RB (A) (B)
3.950%, 07/15/98 1,000 1,001
Monroe County, Pollution
Control Authority, Power
Plant Project, Series 1,
VRDN, RB (A) (B)
3.900%, 04/01/98 950 950
----------
7,226
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
6 MARCH 31, 1998
<PAGE>
TAX EXEMPT MONEY MARKET FUND
===============================================
DESCRIPTION PAR (000) VALUE (000)
- -----------------------------------------------
HAWAII -- 2.3%
Hawaii State Multi-Family
Housing Authority,
Tropicana West Project,
Series A, VRDN,
RB (A) (B) (C)
3.500%, 04/07/98 $ 3,100 $ 3,100
----------
IDAHO -- 0.8%
Nez Perce County,
Pollution Control,
VRDN, RB (A) (B) (C)
3.700%, 04/07/98 1,025 1,025
----------
ILLINOIS -- 6.5%
Chicago, Multi-Family
Housing, Waveland
Association Project,
Series D, VRDN,
RB (A) (B) (C)
3.650%, 04/07/98 2,300 2,300
Chicago, Multi-Family
Housing, Waveland
Association Project,
Series E, VRDN,
RB (A) (B) (C)
3.650%, 04/07/98 300 300
Illinois State Education
Facilities Authority, TECP
3.750%, 04/07/98 1,000 1,000
Illinois State Health
Facilities Authority,
Advocate Healthcare
Network, Series B,
VRDN, RB (A) (B)
3.750%, 04/07/98 1,700 1,700
Illinois State Health
Facilities Authority,
Pekin Memorial Hospital
Project, VRDN,
RB (A) (B) (C)
3.750%, 04/07/98 1,500 1,500
Illinois State Sales Tax, RB
5.000%, 06/15/98 325 326
DESCRIPTION PAR (000) VALUE (000)
- -----------------------------------------------
McCook, St. Andrew Society
Project, Series 1996 A,
VRDN, RB (A) (B) (C)
3.750%, 04/07/98 $ 1,700 $ 1,700
----------
8,826
----------
INDIANA -- 6.0%
Benton, Community
School, TAW
4.250%, 12/31/98 1,000 1,001
Fort Wayne, Hospital
Authority, Parkview
Memorial Hospital,
Series B, VRDN,
RB (BA) (A) (B) (C)
3.700%, 04/17/98 2,400 2,400
Hammond, Local Public
Improvements, Advance
Funding Program,
Series A-1, GO
3.750%, 07/09/98 885 885
Indiana State, GO
4.000%, 01/20/99 1,500 1,505
Indiana State Health
Facilities Authority,
Hartsfield Village Project,
Series B, VRDN,
RB (A) (B) (C)
3.750%, 04/07/98 2,000 2,000
Purdue University, Student
Fee, Series B, RB
6.100%, 07/01/98 250 251
Rockport County, Pollution
Control, AEP Generating
Company Project,
Series B, VRDN,
RB (AMBAC) (A) (B)
3.800%, 04/01/98 100 100
----------
8,142
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
MARCH 31, 1998 7
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
TAX EXEMPT MONEY MARKET FUND
===============================================
DESCRIPTION PAR (000) VALUE (000)
- -----------------------------------------------
KENTUCKY -- 0.0%
Covington Industrial Building,
Atkins & Pearce Inc.,
Series 1995, VRDN, RB (A)
(B) (C)
3.700%, 04/07/98 $ 45 $ 45
----------
LOUISIANA -- 5.3%
Louisiana State Public
Facilities Authority, Sisters
of Charity Project, VRDN,
RB (CS) (A) (B)
3.700%, 04/07/98 2,700 2,700
Louisiana State Public
Facilities Authority,
Willis Knighton Medical
Center, VRDN,
RB (AMBAC) (A) (B)
3.700%, 04/07/98 4,000 4,000
Louisiana State Recovery,
District Sales Tax,
RB (MBIA)
4.250%, 07/01/98 500 500
----------
7,200
----------
MAINE -- 1.2%
Maine State Health &
Higher Education Facilities
Authority, Series C, VRDN,
RB (AMBAC) (A) (B)
3.700%, 04/07/98 1,600 1,600
----------
MARYLAND -- 1.6%
Maryland State Industrial
Development Finance
Authority, Liberty Medical
Center Project, VRDN,
RB (A) (B) (C)
3.700%, 04/07/98 2,200 2,200
----------
MASSACHUSETTS -- 2.2%
Brockton, RAN
4.500%, 06/30/98 800 801
Fall River, BAN
4.250%, 06/15/98 1,200 1,200
DESCRIPTION PAR (000) VALUE (000)
- -----------------------------------------------
New England Education
Loan Marketing
Corporation, Student
Loans, Series C, RB
4.750%, 07/01/98 $1,000 $ 1,002
----------
3,003
----------
MICHIGAN -- 2.2%
Michigan State Strategic
Fund, Van Andel Research
Institution Project,
VRDN, RB (A) (B) (C)
3.700%, 04/07/98 3,000 3,000
----------
MISSOURI -- 1.5%
Jackson County, Industrial
Development Recreational
Authority, Greater Kansas
YMCA Project, Series A,
VRDN, RB (A) (B) (C)
4.050%, 04/01/98 1,100 1,100
Missouri State Health &
Educational Facilities
Authority, Saint Francis
Medical Center Project,
Series A, VRDN,
RB (A) (B) (C)
3.900%, 04/01/98 1,000 1,000
----------
2,100
----------
NEBRASKA -- 0.7%
Hamilton County,
Industrial Development
Authority, Iams
Corporation Project,
VRDN, RB (A) (B) (C)
3.750%, 04/07/98 1,020 1,020
----------
NEW JERSEY -- 2.7%
New Jersey State
Transportation Trust
Fund Authority,
Transportation Systems,
Series A, RB
4.500%, 06/15/98 2,600 2,605
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
8 MARCH 31, 1998
<PAGE>
TAX EXEMPT MONEY MARKET FUND
===============================================
DESCRIPTION PAR (000) VALUE (000)
- -----------------------------------------------
Ventnor City, New Jersey,
Series A, BAN
4.250%, 04/30/98 $ 1,000 $ 1,000
----------
3,605
----------
NEW MEXICO -- 2.9%
New Mexico State,
Series A, TRAN
4.500%, 06/30/98 4,000 4,008
----------
NEW YORK -- 5.0%
Freeport, Unified School
District, TAN (C)
4.250%, 06/29/98 500 500
Lindenhurst, Unified
School District, TAN (C)
4.250%, 06/24/98 500 500
New York, TRAN (C)
4.500%, 06/30/98 5,000 5,009
North Hempstead,
Series C, BAN
4.375%, 05/06/98 750 750
----------
6,759
----------
NORTH CAROLINA -- 0.9%
Greensboro, Greensboro
Coliseum Project,
Series A, VRDN,
COP (A) (B)
3.700%, 04/07/98 1,200 1,200
----------
NORTH DAKOTA -- 0.2%
Grand Forks, Aurora Project,
Series A, RB (MBIA)
3.800%, 06/15/98 215 215
----------
OHIO -- 3.4%
Clermont County, Economic
Development Authority,
Eastmark Center Association
Project, VRDN,
RB (A) (B) (C)
3.800%, 06/01/98 260 260
DESCRIPTION PAR (000) VALUE (000)
- -----------------------------------------------
Cuyahoga County, Hospital
Authority, Cleveland Clinic
Project, Series A, VRDN,
RB (A) (B)
3.700%, 04/07/98 $ 3,600 $ 3,600
Lorain County, Hospital
Facilities, United
Methodist Village Project,
Series 1996-B, VRDN,
RB (A) (B) (C)
3.800%, 04/07/98 800 800
----------
4,660
----------
PENNSYLVANIA -- 9.0%
Allegheny County Industrial
Development Authority,
Longwood at Oakmont
Project, Series D, VRDN,
RB (A) (B) (C)
3.900%, 04/01/98 600 600
Bucks County Industrial
Development Authority,
Edgecomb Metals Project,
VRDN, RB (A) (B) (C)
3.450%, 04/02/98 100 100
Chester County Health &
Education Facilities
Authority, Barclay Friends
Project, Series A, VRDN,
RB (A) (B) (C)
3.700%, 04/01/98 900 900
Dauphin County, General
Authority Pooled Finance
Project, VRDN,
RB (AMBAC) (A) (B)
3.750%, 04/07/98 1,000 1,000
Norristown, TRAN
4.050%, 12/31/98 1,000 1,000
Pennsylvania State Higher
Education Facilities
Authority, Allegheny
College Project, VRDN,
RB (A) (B) (C)
3.700%, 04/07/98 1,400 1,400
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
MARCH 31, 1998 9
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
TAX EXEMPT MONEY MARKET FUND
===============================================
DESCRIPTION PAR (000) VALUE (000)
- -----------------------------------------------
Pennsylvania State, TAN
4.500%, 06/30/98 $ 4,000 $ 4,008
Pennsylvania State
Municipal Authority,
Pre-refunded @102 RB
(FGIC) (D)
7.800%, 04/01/98 385 393
Philadelphia, Industrial
Development Authority,
Fox Chase Cancer Center
Project, VRDN, RB (A) (B)
3.750%, 04/01/98 700 700
Philadelphia School District
Authority, TRAN (C)
4.500%, 06/30/98 750 751
West Allegheny School
District, GO (D)
6.600%, 02/01/99 1,400 1,434
----------
12,286
----------
SOUTH CAROLINA -- 0.4%
South Carolina State, State
Institution, Series B, GO
7.000%, 04/01/98 500 500
----------
TENNESSEE -- 1.9%
Hamilton County, Industrial
Development Board,
Tennessee Aquarium Project,
VRDN, RB (BNY)
(A) (B) (C)
3.700%, 04/07/98 1,100 1,100
Jefferson County, Economic
Development Authority,
Ball Corporation Project,
VRDN, RB (A) (B) (C)
3.950%, 04/07/98 1,000 1,000
Nashville & Davidson
Counties, Metro
Government Water &
Sewer, RB
5.700%, 04/01/98 500 500
----------
2,600
----------
DESCRIPTION PAR (000) VALUE (000)
- -----------------------------------------------
TEXAS -- 8.2%
Bexar County, Detention
Facilities, GO
7.250%, 06/15/98 $ 200 $ 201
Brazos River Authority,
Series A, RB (D)
8.250%, 05/01/98 500 512
Harris County, Toll Road
Project, Series G, VRDN,
RB (A) (B)
3.650%, 04/07/98 1,500 1,500
Harris County, Toll Road
Project, Series B, VRDN,
RB (A) (B)
3.650%, 04/07/98 2,875 2,875
San Antonio, GO
8.750%, 08/01/98 725 737
San Antonio, River Channel
Improvement Authority,
RB (FSA)
6.550%, 07/01/98 290 292
Texas State, Series A, TRAN
4.750%, 08/31/98 5,000 5,022
----------
11,139
----------
UTAH -- 2.6%
Salt Lake City, Revenue
Authority Pooled Project,
VRDN, GO (A) (B) (C)
3.650%, 04/07/98 3,550 3,550
----------
VIRGINIA -- 0.7%
Roanoke, Industrial
Development Authority,
Carilion Health Systems,
Series A, VRDN, RB (A) (B)
3.800%, 04/01/98 900 900
----------
WASHINGTON -- 1.0%
Washington State,
Series A, GO
6.500%, 07/01/98 500 504
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
10 MARCH 31, 1998
<PAGE>
TAX EXEMPT MONEY MARKET FUND
===============================================
DESCRIPTION PAR (000) VALUE (000)
- -----------------------------------------------
Washington State,
Non-profit Housing
Revenue Authority,
Panorama City Project,
VRDN, RB (A) (B) (C)
3.850%, 04/01/98 $ 900 $ 900
----------
1,404
----------
WEST VIRGINIA -- 0.6%
Wood County, Industrial
Development, AGA Gas
Project, VRDN,
RB (A) (B) (C)
3.500%, 04/07/98 800 800
----------
WISCONSIN -- 7.3%
Clinton, Community School
District, TRAN
4.240%, 08/31/98 475 475
Cudahy School District,
TRAN
4.190%, 09/29/98 500 500
Fox Point and Bayside,
Joint School District, BAN
4.200%, 04/10/98 775 775
Janesville, Water Utility
Improvements, PN
4.700%, 06/01/98 1,000 1,001
Janesville, Water Utility
Improvements, PN (FSA)
4.800%, 06/01/98 380 381
La Crosse, Series A,
PN (FSA)
5.250%, 12/01/98 455 460
Menasha Joint School
District, TRAN
4.250%, 10/13/98 1,350 1,351
Middletown, Cross Plains
Area School District,
GO (FGIC)
4.875%, 04/01/98 315 315
DESCRIPTION PAR (000) VALUE (000)
- -----------------------------------------------
Oregon School District,
TRAN
4.220%, 09/16/98 $1,000 $ 1,001
Ozaukee County, PN
4.250%, 09/01/98 1,690 1,694
Wisconsin State Health &
Elderly Facilities Authority,
Cedar Crest Project,
VRDN, RB (A) (B) (C)
3.750%, 04/07/98 1,000 1,000
Wisconsin State Health
Facilities Authority,
Alverno College Project,
VRDN, RB (A) (B) (C)
3.950%, 04/01/98 900 900
----------
9,853
----------
WYOMING -- 0.4%
Cheyenne County, Economic
Development Authority,
Holiday Inn Project,
VRDN, RB (A) (B) (C)
3.900%, 04/01/98 250 250
University of Wyoming,
RB (MBIA)
4.000%, 06/01/98 265 265
----------
515
----------
TOTAL MUNICIPAL BONDS
(Cost $134,667) 134,667
----------
TOTAL INVESTMENTS -- 99.2%
(Cost $134,667) 134,667
----------
OTHER ASSETS AND LIABILITIES,
NET -- 0.8% 1,139
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
MARCH 31, 1998 11
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
TAX EXEMPT MONEY MARKET FUND
===============================================
DESCRIPTION VALUE (000)
- -----------------------------------------------
NET ASSETS:
FUND SHARES
(unlimited authorization --
no par value) based on
135,806,261 outstanding shares
of beneficial interest $135,806
--------
TOTAL NET ASSETS -- 100.0% $135,806
========
NET ASSET VALUE, OFFERING 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, 1998.
(B) PUT AND DEMAND FEATURES EXIST REQUIRING THE ISSUER TO REPURCHASE THE
INSTRUMENT PRIOR TO MATURITY. THE DATE SHOWN IS THE EARLIER OF THE PUT DATE
OR THE MATURITY DATE.
(C) SECURITIES ARE HELD IN CONNECTION WITH A LETTER OF CREDIT OR OTHER CREDIT
SUPPORT.
(D) PRE-REFUNDED SECURITY--THE PRE-REFUNDED DATE IS SHOWN AS THE MATURITY DATE
ON THE STATEMENT OF NET ASSETS.
BAN--BOND ANTICIPATION NOTE
COP--CERTIFICATE OF PARTICIPATION
GO--GENERAL OBLIGATION
PN--PROMISSORY NOTE
RAN--REVENUE ANTICIPATION NOTE
RB--REVENUE BOND
TAN--TAX ANTICIPATION NOTE
TAW--TAX ANTICIPATION WARRANT
TECP--TAX EXEMPT COMMERCIAL PAPER
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
BNY--BANK OF NEW YORK
CS--CREDIT SUISSE
FGIC--FEDERAL GUARANTY INSURANCE COMPANY
FSA--FINANCIAL SECURITY ASSURANCE
MBIA--MUNICIPAL BOND INSURANCE ASSOCIATION
GOVERNMENT SECURITIES FUND
===============================================
DESCRIPTION PAR (000) VALUE (000)
- -----------------------------------------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 9.3%
Farmer MAC
7.560%, 05/28/02 $ 500 $ 531
FFCB
8.650%, 10/01/99 255 265
FHLB
5.370%, 11/03/00 500 494
7.500%, 08/10/04 500 542
FHLMC
6.300%, 03/15/03 135 135
6.280%, 07/15/03 250 250
7.930%, 01/20/05 250 277
FICO STRIPS
0.000%, 10/05/05 180 115
0.000%, 12/27/05 334 211
0.000%, 10/06/06 500 300
0.000%, 11/11/06 1,000 597
0.000%, 12/27/06 500 296
FNMA
9.150%, 04/10/98 1,175 1,176
9.550%, 03/10/99 255 264
5.875%, 02/02/06 5,000 4,961
SBA Ser 1988-10-C
9.350%, 07/01/98 3 4
TVA
6.250%, 08/01/99 400 401
8.375%, 10/01/99 3,000 3,101
----------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $13,765) 13,920
----------
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS -- 36.9%
FHLMC
7.000%, 04/01/00 7 7
9.000%, 11/01/05 623 652
9.000%, 05/01/06 831 869
7.250%, 05/01/07 34 35
9.000%, 08/01/09 632 656
9.000%, 12/01/09 955 1,016
9.500%, 04/01/16 4 5
6.500%, 11/15/22 5,200 5,164
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
12 MARCH 31, 1998
<PAGE>
GOVERNMENT SECURITIES FUND
===============================================
DESCRIPTION PAR (000) VALUE (000)
- -----------------------------------------------
FHLMC CMO
7.500%, 11/15/01 $3,932 $ 4,002
6.700%, 05/15/05 1,925 1,938
7.000%, 09/15/07 3,425 3,430
6.500%, 04/15/08 4,850 4,865
7.750%, 01/15/20 223 223
FNMA
7.000%, 08/01/02 157 160
6.500%, 04/01/04 56 56
8.000%, 05/25/05 100 105
6.250%, 02/25/07 150 150
7.000%, 09/01/07 2,739 2,786
6.250%, 01/25/09 1,000 1,003
6.550%, 12/25/21 150 151
FNMA REMIC
7.350%, 06/25/07 2,000 2,016
6.250%, 10/25/22 42 43
GNMA
9.000%, 07/15/02 8 9
6.500%, 07/15/08 1,100 1,108
6.500%, 03/15/09 105 106
6.500%, 05/15/09 2,600 2,619
9.000%, 06/15/16 13 14
9.000%, 07/15/16 298 406
9.000%, 09/15/16 255 273
9.000%, 10/15/16 82 88
9.000%, 11/15/16 215 230
9.000%, 02/15/17 23 25
9.500%, 08/15/17 394 428
10.000%, 04/15/19 158 173
10.000%, 05/15/19 33 37
10.000%, 06/15/19 5 6
9.500%, 12/15/19 351 381
7.500%, 06/15/23 3,701 3,796
7.000%, 03/15/24 1,999 2,019
7.000%, 04/15/24 2,871 2,900
8.500%, 10/15/24 995 1,051
7.500%, 06/15/25 204 210
8.000%, 06/15/25 182 189
8.000%, 07/15/25 1,859 1,925
7.000%, 01/15/26 4,556 4,601
7.500%, 03/15/26 141 145
8.000%, 08/15/26 211 219
7.500%, 03/15/27 2,702 2,773
----------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS
(Cost $54,322) 55,063
----------
DESCRIPTION PAR (000) VALUE (000)
- -----------------------------------------------
U.S. TREASURY OBLIGATIONS -- 43.7%
U.S. Treasury Bonds
6.125%, 05/15/98 $ 200 $ 200
5.625%, 02/15/06 12,500 12,393
9.375%, 02/15/06 1,000 1,227
7.125%, 02/15/23 2,500 2,852
U.S. Treasury Notes
5.125%, 04/30/98 1,800 1,800
9.000%, 05/15/98 1,550 1,557
5.125%, 06/30/98 2,650 2,649
8.250%, 07/15/98 100 101
9.250%, 08/15/98 2,500 2,534
8.875%, 11/15/98 50 51
5.625%, 11/30/98 3,000 3,003
6.375%, 01/15/99 1,500 1,510
8.000%, 08/15/99 100 103
7.125%, 09/30/99 3,000 3,064
6.000%, 10/15/99 1,500 1,508
7.875%, 11/15/99 1,400 1,449
6.375%, 01/15/00 150 152
8.500%, 02/15/00 2,850 2,994
5.500%, 04/15/00 650 649
6.000%, 08/15/00 7,500 7,550
8.750%, 08/15/00 2,775 2,964
6.375%, 08/15/02 5,425 5,565
6.250%, 02/15/03 150 154
5.750%, 08/15/03 2,150 2,155
5.875%, 02/15/04 1,500 1,515
6.500%, 08/15/05 3,000 3,133
5.500%, 02/15/08 2,500 2,468
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $64,442) 65,300
----------
CORPORATE OBLIGATION -- 1.3%
CPD Barge
6.120%, 02/15/23 1,935 1,887
----------
TOTAL CORPORATE OBLIGATION
(Cost $1,935) 1,887
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
MARCH 31, 1998 13
<PAGE>
STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS
(UNAUDITED)
GOVERNMENT SECURITIES FUND
===============================================
DESCRIPTION PAR (000) VALUE (000)
- -----------------------------------------------
CASH EQUIVALENTS -- 4.7%
SEI Liquid Asset Trust
Government Portfolio $ 3,895 $ 3,895
SEI Liquid Asset Trust
Treasury Portfolio 3,144 3,144
--------
TOTAL CASH EQUIVALENTS
(Cost $7,039) 7,039
--------
REPURCHASE AGREEMENT -- 3.7%
UBS SECURITIES
5.920%, dated 03/31/98, matures
04/01/98, repurchase price
$5,594,414 (collateralized by
a FNMA Obligation, total
market value:
$5,705,772) (1) 5,593 5,593
--------
TOTAL REPURCHASE AGREEMENT
(Cost $5,593) 5,593
--------
TOTAL INVESTMENTS -- 99.6%
(Cost $147,096) 148,802
--------
OTHER ASSETS AND LIABILITIES,
NET -- 0.4% 991
--------
NET ASSETS:
FUND SHARES OF CLASS A
(unlimited authorization --
no par value) based on
14,797,002 outstanding
shares of beneficial interest 147,756
FUND SHARES OF CLASS B (unlimited
authorization -- no
par value) based on
113,389 outstanding shares
of beneficial interest 1,122
Accumulated net realized loss
on investments (790)
Net unrealized appreciation
on investments 1,706
Distributions in excess of net
investment income (1)
--------
TOTAL NET ASSETS -- 100.0% $149,793
========
DESCRIPTION VALUE (000)
- -----------------------------------------------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $10.05
========
MAXIMUM OFFERING PRICE
PER SHARE -- CLASS A
($10.05 / 96.50%) $10.41
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B (2) $10.10
========
- --------------------------------------------------------------------------------
CMO--COLLATERALIZED MORTGAGE OBLIGATION FARMER
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 REMIC--REAL ESTATE MORTGAGE INVESTMENT CONDUIT
SBA--SMALL BUSINESS ADMINISTRATION
SER--SERIES
STRIPS--SEPARATE TRADING OF REGISTERED INTEREST AND PRINCIPAL OF SECURITIES
TVA--TENNESSEE VALLEY AUTHORITY
(1) TRI-PARTY REPURCHASE AGREEMENT
(2) CLASS B HAS A CONTINGENT DEFERRED SALES CHARGE. FOR A DESCRIPTION OF A
POSSIBLE SALES CHARGE, SEE NOTES TO THE FINANCIAL STATEMENTS.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
14 MARCH 31, 1998
<PAGE>
STRATEGIC INCOME BOND FUND
==========================================
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------
CORPORATE OBLIGATIONS -- 64.8%
Aetna Services
7.625%, 08/15/26 $250 $ 269
AT&T
8.625%, 12/01/31 250 275
Bankers Trust NY
7.250%, 10/15/11 250 259
Brunswick
7.375%, 09/01/23 400 419
Canadian Pacific Limited
9.450%, 08/01/21 280 361
Coca-Cola Enterprises
7.125%, 08/01/17 500 522
6.950%, 11/15/26 400 407
Commonwealth Edison
8.375%, 09/15/22 300 320
Eastman Chemical
7.600%, 02/01/27 250 267
Florida Power
8.000%, 12/01/22 500 530
Ford Motor Credit
6.250%, 12/08/05 250 247
GTE
7.900%, 02/01/27 400 419
IBM
7.000%, 10/30/25 650 674
Ingersoll-Rand
7.200%, 06/01/25 300 312
Lehman Brothers
8.500%, 08/01/15 295 340
Loew's
7.625%, 06/01/23 300 311
Loral
7.000%, 09/15/23 400 405
MCI Communications
8.250%, 01/20/23 400 428
Merrill Lynch
5.580%, 05/12/98 600 596
Minnesota Power & Light
7.500%, 08/01/07 200 209
NationsBank
7.800%, 09/15/16 500 554
Pacificorp, Ser F
7.240%, 08/16/23 250 257
Philip Morris
7.200%, 02/01/07 250 257
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------
Sunamerica
8.125%, 04/28/23 $419 $ 470
Texas Utilities
7.875%, 03/01/23 250 259
Torchmark
7.875%, 05/15/23 400 428
United Telephone Florida
8.375%, 01/15/25 270 320
U.S. West Capital Funding
7.300%, 01/15/07 250 264
Weyerhaeuser
7.500%, 03/01/13 500 541
-------
TOTAL CORPORATE OBLIGATIONS
(Cost $10,490) 10,920
-------
U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS -- 26.3%
FHLMC
7.500%, 02/01/27 858 881
7.000%, 02/01/28 349 354
FNMA
7.500%, 10/01/26 435 446
7.500%, 02/01/27 445 457
7.000%, 02/01/28 445 450
GNMA
7.500%, 02/15/27 456 468
7.750%, 02/15/27 460 474
8.000%, 03/20/27 428 442
7.000%, 11/15/27 445 449
-------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS
(Cost $4,365) 4,421
-------
CASH EQUIVALENT -- 0.5%
SEI Liquid Asset Trust
Government Portfolio 85 85
-------
TOTAL CASH EQUIVALENT
(Cost $85) 85
-------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
MARCH 31, 1998 15
<PAGE>
SCHEDULE OF INVESTMENTS/STATEMENT OF NET ASSETS
(UNAUDITED)
STRATEGIC INCOME BOND FUND
==========================================
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------
REPURCHASE AGREEMENT -- 2.6%
UBS SECURITIES
5.920%, dated 03/31/98,
matures 04/01/98, repurchase
price $436,467
(collateralized by
FNMA Obligation, total
market value:
$446,453) (1) $436 $ 436
-------
TOTAL REPURCHASE AGREEMENT
(Cost $436) 436
-------
TOTAL INVESTMENTS -- 94.2%
(Cost $15,376) 15,862
=======
- -----------------------------------------------
FHLMC--FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA--FEDERAL NATIONAL MORTGAGE ASSOCIATION
GNMA--GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
SER--SERIES
(1) TRI-PARTY REPURCHASE AGREEMENT
LOUISIANA TAX-FREE INCOME FUND
==========================================
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------
MUNICIPAL BONDS -- 89.8%
LOUISIANA -- 89.8%
Alexandria, Utilities,
RB (FGIC)
5.250%, 05/01/11 $100 $ 103
Alexandria, Utilities,
Series B, RB
4.650%, 05/01/04 150 153
Ascension Parish School
District, GO (AMBAC)
4.900%, 03/01/09 150 152
Baton Rouge, Sales & Use
Tax, RB (FSA)
6.000%, 08/01/08 200 214
Bossier City, Utilities,
RB (FGIC)
4.800%, 10/01/05 500 513
Caddo Parish, GO (MBIA)
5.000%, 02/01/05 350 363
East Baton Rouge Parish,
Sales & Use Tax, RB (FGIC)
4.800%, 02/01/06 650 665
East Baton Rouge Parish,
Sales & Use Tax, Series A,
RB (FGIC)
4.800%, 02/01/09 340 343
East Baton Rouge Parish,
Sales & Use Tax, RB (FGIC)
5.900%, 02/01/16 500 533
East Baton Rouge, Mortgage
Financing Authority,
Series B, RB
4.350%, 10/01/00 75 76
5.300%, 10/01/14 85 85
Ernest N. Morial Exhibition
Hall, Special Tax,
RB (MBIA)
4.700%, 07/15/05 115 117
4.900%, 07/15/07 515 531
Gretna, Sales Tax,
RB (AMBAC)
5.200%, 06/01/06 225 231
Iberville School District,
GO (FSA)
5.750%, 10/01/03 250 268
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
16 MARCH 31, 1998
<PAGE>
LOUISIANA TAX-FREE INCOME FUND
==========================================
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------
Jefferson Parish, Ad Valorem
Property Tax, Series A,
GO (FGIC)
5.250%, 09/01/05 $ 250 $ 263
Jefferson Parish, Hospital
Services, RB (FGIC)
5.100%, 01/01/05 300 311
5.300%, 01/01/07 100 105
Jefferson Parish, Sales &
Use Tax, RB (AMBAC)
5.000%, 02/01/08 130 134
5.000%, 02/01/13 700 699
Jefferson Parish, Sales &
Use Tax, RB (MBIA)
6.250%, 02/01/08 300 326
Kenner, Sales Tax, RB (FGIC)
5.750%, 06/01/06 100 107
Lafayette Parish, Sales Tax,
RB (FSA)
4.875%, 04/01/04 575 592
Lafayette Parish, Sales Tax,
RB (FGIC) (A)
6.000%, 04/01/08 1,250 1,394
Lafayette, Public
Improvements, Sales Tax,
RB (FGIC)
4.625%, 05/01/05 300 304
Lafayette, Public Power
Authority, RB (AMBAC)
5.000%, 11/01/06 250 258
5.300%, 11/01/07 510 529
5.250%, 11/01/09 250 259
Lafayette, Utilities,
RB (AMBAC)
4.100%, 11/01/99 275 276
4.700%, 11/01/04 125 128
Lafayette, Public
Improvements, Sales Tax,
RB (FGIC)
5.500%, 03/01/07 200 212
Lafayette, Public
Improvements, Series A,
RB (FGIC)
4.900%, 03/01/03 505 519
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------
Lafourche Parish, School
Improvements, GO (FSA)
5.000%, 02/01/16 $ 900 $ 891
Louisiana State Housing
Finance Agency, Single
Family Mortgages,
Series B, RB
6.000%, 06/01/15 820 860
Louisiana State Public
Facilities Authority,
Department of Public
Safety, RB (AMBAC)
4.900%, 08/01/04 500 514
5.000%, 08/01/05 400 413
Louisiana State Public
Facilities Authority,
Series A-1, RB (AMBAC)
5.000%, 12/01/15 1,500 1,525
Louisiana State Energy &
Power Authority,
RB (FGIC)
6.000%, 01/01/13 500 521
Louisiana State,
Miscellaneous Taxes
Refunding Bonds,
Series A, RB
5.700%, 08/01/08 500 547
Louisiana State, Mississippi
River Bridge
Authority, RB
6.625%, 11/01/06 1,130 1,258
Louisiana State Public
Facilities Authority,
Jefferson Parish, Eastbank
Project, RB (FGIC)
4.850%, 08/01/06 250 257
Louisiana State Public
Facilities Authority,
Loyola University
Project, RB (MBIA)
4.900%, 10/01/05 1,000 1,032
Louisiana State Public
Facilities Authority, Our
Lady of Lake Regional
Center, RB (MBIA)
5.900%, 12/01/06 390 414
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
MARCH 31, 1998 17
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
LOUISIANA TAX-FREE INCOME FUND
==========================================
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------
Louisiana State Public
Facilities Authority,
Series A, RB (FSA)
5.100%, 03/01/01 $ 250 $ 257
Louisiana State Public
Facilities Authority, Alton
Ochsner Medical
Foundation Project,
Series A, RB (MBIA)
6.000%, 05/15/01 100 106
Louisiana State Public
Facilities Authority, Alton
Ochsner Medical
Foundation Project,
Series PJ-B, RB (MBIA)
6.000%, 05/15/17 100 105
Louisiana State Public
Facilities Authority,
Special Insurance
Assessment, RB
4.400%, 10/01/00 120 121
Louisiana State, Refunding
Bonds, Ad Valorem
Property Tax, GO (MBIA)
6.250%, 08/01/99 250 257
Louisiana State, Refunding
Bonds, GO (MBIA)
5.375%, 08/01/05 400 424
Louisiana State, Refunding
Bonds, Series A,
GO (MBIA)
5.100%, 08/01/01 250 258
5.300%, 08/01/04 250 263
Louisiana State University,
Agricultural & Mechanical
College Project, RB (FGIC)
5.400%, 07/01/05 150 159
Louisiana State University,
Agricultural & Mechanical
College Project, RB (MBIA)
6.000%, 07/01/07 580 645
Louisiana State University,
Agricultural & Mechanical
College Project, RB (FGIC)
5.500%, 07/01/06 250 267
5.750%, 07/01/14 500 524
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------
Louisiana State, Unlimited
Tax, GO (FGIC)
5.125%, 04/15/08 $1,000 $ 1,043
Louisiana State, Unlimited
Tax, GO (MBIA)
5.600%, 08/01/07 250 270
Louisiana State,
Unlimited Tax, Series A,
GO (AMBAC)
6.000%, 05/01/07 1,000 1,097
Louisiana State, Unlimited
Tax, Series A, GO (FGIC)
5.500%, 04/15/02 1,750 1,836
Louisiana State, Unlimited
Tax, Series A, GO (MBIA)
6.000%, 05/15/99 950 974
Louisiana State, Unlimited
Tax, GO (MBIA)
5.600%, 08/01/08 250 272
Louisiana State, GO (FGIC)
6.000%, 08/01/04 1,000 1,092
Louisiana State, Series A,
GO (MBIA)
5.500%, 05/15/05 500 533
5.600%, 05/15/07 750 810
5.700%, 05/15/08 250 270
Mandeville, Water Utility
Improvements, Ad
Valorem Property Tax, RB
5.150%, 02/01/10 100 102
Monroe, Special School
District, GO (FGIC)
5.350%, 03/01/09 500 521
Natchitoches Parish School
District #7, GO (FSA)
4.900%, 03/01/07 190 194
New Orleans, Home
Mortgages, Special
Obligation, RB
6.250%, 01/15/11 500 562
New Orleans, GO (FGIC)
5.850%, 11/01/09 350 374
New Orleans, Sewer
Service, RB (FGIC)
6.250%, 06/01/07 1,215 1,374
5.250%, 06/01/11 1,000 1,035
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
18 MARCH 31, 1998
<PAGE>
LOUISIANA TAX-FREE INCOME FUND
==========================================
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------
Orleans Parish School
Board, GO (FGIC)
5.300%, 09/01/10 $ 250 $ 259
Orleans Parish School
Board, Public School
Capital Refinancing,
RB (MBIA)
5.000%, 12/01/05 250 260
6.000%, 06/01/09 555 621
Saint Bernard Parish,
School Board Refunding,
GO (MBIA)
4.550%, 05/01/06 200 201
4.600%, 05/01/07 200 201
4.700%, 05/01/08 200 202
4.800%, 05/01/09 200 201
4.900%, 05/01/10 200 202
Saint Charles Parish,
Sales Tax, Series St-96,
RB (MBIA)
5.000%, 12/01/06 500 520
Saint James Parish,
Ad Valorem Property
Tax, GO
4.800%, 03/01/05 85 87
5.200%, 03/01/08 75 77
Saint Landry Parish School
District #1, GO (FSA)
4.350%, 05/01/05 1,750 1,746
Saint Tammany Parish,
Sales & Use Tax,
RB (FGIC)
5.750%, 04/01/03 250 267
5.750%, 04/01/06 250 266
Saint Tammany Parish
School District #12,
GO (FGIC)
6.500%, 03/01/05 200 213
Shreveport, Public
Improvements, Ad
Valorem Property Tax, RB
4.750%, 12/01/09 200 200
Shreveport, Unlimited Tax,
GO (AMBAC)
5.150%, 02/01/09 265 273
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------
Slidell, GO (AMBAC)
4.900%, 03/01/09 $ 200 $ 203
5.000%, 03/01/13 400 399
Slidell, Public
Improvements, Sales
& Use Tax, Series B, RB
5.200%, 10/01/05 100 105
5.400%, 10/01/07 200 210
-------
41,453
-------
TOTAL MUNICIPAL BONDS
(Cost $40,096) 41,453
-------
CASH EQUIVALENTS -- 8.9%
SEI Tax Exempt Trust
Institutional Trust Tax-
Free Portfolio 2,142 2,142
SEI Tax Exempt Trust Tax-
Free Portfolio 1,946 1,946
-------
TOTAL CASH EQUIVALENTS
(Cost $4,088) 4,088
-------
REPURCHASE AGREEMENT -- 5.8%
UBS SECURITIES
5.920%, dated 03/31/98,
matures 04/01/98, repurchase
price $2,664,886
(collateralized by FNMA
Obligation, total
market value:
$2,719,769) (1) 2,664 2,664
-------
TOTAL REPURCHASE AGREEMENT
(Cost $2,664) 2,664
-------
TOTAL INVESTMENTS -- 104.5%
(Cost $46,848) 48,205
-------
OTHER ASSETS AND LIABILITIES,
NET -- (4.5%) (2,068)
-------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
MARCH 31, 1998 19
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
LOUISIANA TAX-FREE INCOME FUND
==========================================
DESCRIPTION VALUE (000)
- ------------------------------------------
NET ASSETS:
FUND SHARES OF CLASS A
(unlimited authorization --
no par value) based on
4,320,893 outstanding shares
of beneficial interest $42,770
FUND SHARES OF CLASS B
(unlimited authorization --
no par value) based on
204,208 outstanding shares
of beneficial interest 2,064
Accumulated net realized loss
on investments (54)
Net unrealized appreciation
on investments 1,357
-------
TOTAL NET ASSETS -- 100.0% $46,137
=======
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $10.20
=======
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A
($10.20 / 96.50%) $10.57
=======
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B (2) $10.20
=======
- --------------------------------------------------------------------------------
(A) WHEN-ISSUED SECURITY
FNMA--FEDERAL NATIONAL MORTGAGE ASSOCIATION
GO--GENERAL OBLIGATION
RB--REVENUE BOND
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING CREDIT SUPPORT FOR CERTAIN
SECURITIES AS DEFINED IN THE STATEMENT OF NET ASSETS:
AMBAC--AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
FGIC--FINANCIAL GUARANTY INSURANCE COMPANY
FSA--FINANCIAL SECURITY ASSURANCE
MBIA--MUNICIPAL BOND INSURANCE ASSOCIATION
(1) 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.
BALANCED FUND
==========================================
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------
COMMON STOCKS -- 53.0%
AEROSPACE & DEFENSE -- 1.5%
Sci Systems* 32,400 $ 1,154
Thiokol 23,560 1,138
-------
2,292
-------
AIR TRANSPORTATION -- 0.7%
British Airways,
PLC, ADR 9,200 957
-------
APPAREL/TEXTILES -- 1.0%
Tommy Hilfiger* 10,000 601
VF 15,800 830
-------
1,431
-------
AUTOMOTIVE -- 2.4%
Chrysler 26,500 1,101
Ford Motor 26,350 1,708
TRW 13,600 750
-------
3,559
-------
BANKS -- 1.7%
First Union 21,400 1,214
J.P. Morgan 9,900 1,330
-------
2,544
-------
BEAUTY PRODUCTS -- 0.8%
Avon Products 14,420 1,125
-------
BUILDING & CONSTRUCTION -- 1.4%
Fluor 23,720 1,180
Lennar 25,600 882
-------
2,062
-------
CHEMICALS -- 2.9%
Dow Chemical 7,000 681
E.I. du Pont
de Nemours 18,140 1,234
Lubrizol 22,800 878
Vulcan Materials 13,950 1,528
-------
4,321
-------
COMPUTERS & SERVICES -- 2.4%
Compaq Computer 35,000 906
Computer Associates
International 20,700 1,195
Quantum* 27,360 583
Tektronix 21,370 954
-------
3,638
-------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
20 MARCH 31, 1998
<PAGE>
BALANCED FUND
==========================================
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------
CONCRETE & MINERAL PRODUCTS -- 0.7%
Armstrong World
Industries 12,470 $ 1,079
-------
CONSUMER PRODUCTS -- 0.5%
International Game
Technology 21,000 525
Nine West Group* 11,000 271
-------
796
-------
DRUGS -- 1.7%
Merck 9,830 1,262
Schering Plough 16,400 1,340
-------
2,602
-------
ELECTRICAL SERVICES -- 4.5%
Consolidated Edison 29,100 1,360
Duke Power 13,600 810
GPU 27,500 1,217
New England Electric
Systems 19,300 882
OGE Energy 15,400 891
Pacific Enterprises 19,600 800
Southern 27,100 750
-------
6,710
-------
FINANCIAL SERVICES -- 2.6%
Countrywide Credit
Industries 20,540 1,092
Greenpoint Financial 34,800 1,251
Slm Holding 37,100 1,618
-------
3,961
-------
FOOD, BEVERAGE & TOBACCO -- 1.8%
IBP 28,400 637
Philip Morris 20,100 838
Quaker Oats 20,660 1,183
-------
2,658
-------
GAS/NATURAL GAS -- 0.7%
Nicor 26,150 1,105
-------
HOUSEHOLD PRODUCTS -- 1.0%
Maytag 30,000 1,434
-------
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------
INSURANCE -- 2.8%
Allstate 10,680 $ 982
AMBAC 34,600 2,022
Conseco 21,840 1,237
-------
4,241
-------
LEISURE -- 0.3%
Callaway Golf 16,000 464
-------
LUMBER & WOOD PRODUCTS -- 0.7%
Plum Creek Timber 32,000 1,056
-------
MACHINERY -- 3.8%
Applied Materials* 17,000 600
Caterpillar 20,400 1,123
Crane 19,500 1,033
Cummins Engine 14,000 772
Deere 13,800 855
Parker Hannifin 25,275 1,295
-------
5,678
-------
MEDICAL PRODUCTS & SERVICES -- 0.7%
Lincare Holdings* 15,700 1,109
-------
MISCELLANEOUS MANUFACTURING -- 1.3%
Trinity Industries 20,750 1,139
Wolverine Tube* 20,800 835
-------
1,974
-------
PETROLEUM & FUEL PRODUCTS -- 3.5%
Ensco International 31,480 874
Noble Drilling* 36,000 1,100
Phillips Petroleum 18,200 909
Union Texas Petroleum 50,000 1,106
USX-Marathon Group 33,000 1,242
-------
5,231
-------
PETROLEUM REFINING -- 1.3%
British Petroleum ADR 11,960 1,029
Mobil 12,000 919
-------
1,948
-------
PROFESSIONAL SERVICES -- 0.6%
Tech Data* 23,000 885
-------
RAILROADS -- 0.0%
Illinois Central 466 18
-------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
MARCH 31, 1998 21
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
BALANCED FUND
==========================================
DESCRIPTION SHARES/PAR (000) VALUE (000)
- ------------------------------------------
RETAIL -- 3.6%
Dayton Hudson 16,010 $ 1,409
Lone Star Steakhouse
& Saloon* 20,000 454
Ross Stores 34,260 1,512
TJX 40,400 1,828
-------
5,203
-------
RUBBER & PLASTICS -- 0.7%
Premark International 33,210 1,100
-------
SEMI-CONDUCTORS/INSTRUMENTS -- 0.6%
Novellus Systems* 21,890 947
-------
STEEL & STEEL WORKS -- 1.5%
Texas Industries 19,030 1,100
USX-U.S. Steel Group 28,530 1,077
-------
2,177
-------
TELEPHONES & TELECOMMUNICATION -- 2.6%
Ameritech 25,400 1,256
Century Telephone
Enterprises 25,750 1,574
SBC Communications 21,600 942
-------
3,772
-------
TRUCKING -- 0.7%
Werner Enterprises 41,550 1,060
-------
TOTAL COMMON STOCKS
(Cost $54,402) 79,137
-------
U.S. GOVERNMENT AGENCY
OBLIGATION -- 3.3%
FNMA
5.875%, 02/02/06 $ 5,000 4,961
-------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATION
(Cost $4,891) 4,961
-------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS -- 13.8%
FHLMC
7.000%, 04/01/00 $ 2 $ 2
9.000%, 05/01/06 68 71
9.000%, 08/01/09 329 341
6.500%, 11/15/22 1,486 1,476
FHLMC REMIC
7.150%, 01/15/23 2,000 2,041
FNMA
7.000%, 09/01/07 1,060 1,079
FNMA CMO
7.000%, 01/25/03 1,790 1,790
GNMA
7.500%, 08/15/07 340 352
6.500%, 07/15/08 550 554
7.000%, 07/15/08 387 396
6.500%, 03/15/09 1,352 1,362
13.500%, 05/15/11 15 19
12.500%, 10/15/13 2 3
12.000%, 03/15/14 17 21
13.500%, 09/15/14 12 15
9.000%, 12/15/16 65 70
10.000%, 07/15/18 95 105
10.000%, 03/15/19 81 89
7.000%, 04/15/24 1,089 1,100
7.500%, 06/15/25 1,604 1,645
7.000%, 02/15/26 6,757 6,823
7.500%, 05/15/26 656 674
8.000%, 05/15/26 529 549
-------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS
(Cost $20,352) 20,577
-------
U.S. TREASURY OBLIGATIONS -- 25.3%
U.S. Treasury Bonds
5.625%, 02/15/06 3,000 2,974
7.125%, 02/15/23 1,000 1,141
U.S. Treasury Notes
6.500%, 08/15/05 1,500 1,567
9.000%, 05/15/98 2,000 2,009
9.250%, 08/15/98 2,000 2,027
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
22 MARCH 31, 1998
<PAGE>
BALANCED FUND
==========================================
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------
6.375%, 01/15/99 $1,000 $ 1,006
7.000%, 04/15/99 3,000 3,043
6.375%, 07/15/99 1,500 1,514
8.000%, 08/15/99 2,000 2,062
8.500%, 02/15/00 500 525
6.250%, 10/31/01 2,000 2,036
6.250%, 08/31/02 2,000 2,042
6.250%, 02/15/03 4,000 4,095
5.750%, 08/15/03 1,500 1,504
5.875%, 11/15/05 5,000 5,038
6.250%, 02/15/07 2,000 2,067
6.125%, 08/15/07 3,000 3,083
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $37,272) 37,733
--------
CASH EQUIVALENTS -- 4.1%
SEI Liquid Asset Trust
Government Portfolio 3,047 3,047
SEI Liquid Asset Trust
Treasury Portfolio 3,104 3,104
--------
TOTAL CASH EQUIVALENTS
(Cost $6,151) 6,151
--------
REPURCHASE AGREEMENT -- 1.1%
UBS SECURITIES
5.920%, dated 03/31/98, matures
04/01/98, repurchase price
$1,681,676 (collateralized by
U.S. Treasury Obligation,
total market value:
$1,712,129) (1) 1,681 1,681
--------
TOTAL REPURCHASE AGREEMENT
(Cost $1,681) 1,681
--------
TOTAL INVESTMENTS -- 100.6%
(Cost $124,749) 150,240
--------
OTHER ASSETS AND LIABILITIES,
NET -- (0.6%) (894)
--------
DESCRIPTION VALUE (000)
- ------------------------------------------
NET ASSETS:
FUND SHARES OF CLASS A
(unlimited authorization --
no par value) based on
11,098,034 outstanding shares
of beneficial interest $114,807
FUND SHARES OF CLASS B
(unlimited authorization --
no par value) based on
366,493 outstanding shares
of beneficial interest 4,197
Accumulated net realized gain
on investments 4,851
Net unrealized appreciation
on investments 25,491
--------
TOTAL NET ASSETS -- 100.0% $149,346
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $13.03
========
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A
($13.03 / 96.50%) $13.50
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B (2) $13.09
========
- --------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY
ADR--AMERICAN DEPOSITORY RECEIPT
AMBAC--AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
CMO--COLLATERALIZED MORTGAGE OBLIGATION
FHLMC--FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA--FEDERAL NATIONAL MORTGAGE ASSOCIATION
GNMA--GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
PLC--PUBLIC LIMITED COMPANY
REMIC--REAL ESTATE MORTGAGE INVESTMENT CONDUIT
(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.
MARCH 31, 1998 23
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
VALUE EQUITY FUND
==========================================
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------
COMMON STOCKS -- 97.3%
AEROSPACE & DEFENSE -- 2.7%
Sci Systems* 61,600 $ 2,195
Thiokol 42,800 2,068
--------
4,263
--------
AIR TRANSPORTATION -- 3.6%
Airborne Freight 87,040 3,275
Southwest Airlines 87,960 2,600
--------
5,875
--------
APPAREL/TEXTILES -- 2.0%
Russell 42,000 1,126
VF 40,000 2,103
--------
3,229
--------
AUTOMOTIVE -- 3.9%
Arvin Industries 49,130 2,011
Chrysler 39,800 1,654
Ford Motor 41,000 2,657
--------
6,322
--------
BANKS -- 4.7%
BankAmerica 28,600 2,363
Chase Manhattan 15,830 2,135
First Union 25,000 1,419
J.P. Morgan 13,500 1,813
--------
7,730
--------
BUILDING & CONSTRUCTION -- 3.0%
Centex 70,120 2,673
Fluor 43,870 2,183
--------
4,856
--------
CHEMICALS -- 4.6%
Dexter 48,800 2,019
Dow Chemical 17,300 1,682
Lubrizol 41,850 1,611
Vulcan Materials 21,760 2,383
--------
7,695
--------
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------
COMPUTERS & SERVICES -- 3.7%
Compaq Computer 92,000 $ 2,381
Computer Associates
International 43,665 2,522
Quantum* 49,720 1,060
--------
5,963
--------
CONCRETE & MINERAL PRODUCTS -- 1.5%
Lafarge 63,000 2,418
--------
DRUGS -- 2.2%
Eli Lilly 25,000 1,491
Mylan Laboratories 84,960 1,954
--------
3,445
--------
ELECTRICAL SERVICES -- 10.6%
Baltimore Gas &
Electric 51,500 1,683
Consolidated Edison 41,000 1,917
Duke Power 24,598 1,465
Enova 70,100 1,958
Florida Progress 44,810 1,868
GPU 40,000 1,770
New England Electric
System 24,300 1,110
PP&L Resources 57,000 1,347
Philips Electronics,
N.V. 27,560 2,024
Southern 74,500 2,063
--------
17,205
--------
FINANCIAL SERVICES -- 5.2%
AG Edwards 45,000 1,969
Countrywide Credit
Industries 37,990 2,021
FNMA 36,910 2,335
Slm Holding 43,855 1,913
--------
8,238
--------
FOOD, BEVERAGE & TOBACCO -- 2.6%
Quaker Oats 37,700 2,158
Universal 43,600 1,921
--------
4,079
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
24 MARCH 31, 1998
<PAGE>
VALUE EQUITY FUND
==========================================
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------
GAS/NATURAL GAS -- 3.0%
National Fuel & Gas 37,000 $ 1,739
Nicor 49,090 2,074
Peoples Energy 26,500 964
--------
4,777
--------
INSURANCE -- 7.7%
Allstate 21,650 1,990
AMBAC 41,000 2,396
Conseco 36,300 2,055
Equitable 49,800 2,811
Travelers 49,500 2,970
--------
12,222
--------
MACHINERY -- 7.4%
Aerquip-Vickers 34,890 2,017
Applied Materials* 53,800 1,900
Caterpillar 38,200 2,103
Deere 31,000 1,920
Ingersoll Rand 36,000 1,726
Parker Hannifin 42,330 2,169
--------
11,835
--------
MEDICAL PRODUCTS & SERVICES -- 1.3%
Guidant 27,490 2,017
--------
MISCELLANEOUS TRANSPORTATION -- 1.0%
Fleetwood Enterprises 36,000 1,676
--------
PETROLEUM & FUEL PRODUCTS -- 5.3%
K N Energy 35,340 2,087
Noble Drilling* 70,300 2,149
Transocean Offshore 45,380 2,334
USX-Marathon Group 50,000 1,881
--------
8,451
--------
PETROLEUM REFINING -- 4.5%
British Petroleum, ADR 21,740 1,871
Chevron 22,000 1,767
Mobil 20,800 1,594
Texaco 32,620 1,965
--------
7,197
--------
RETAIL -- 10.9%
Brinker International* 96,880 2,119
DESCRIPTION SHARES/PAR (000) VALUE (000)
- ------------------------------------------
Cracker Barrel Old
Country Stores 51,480 $ 2,059
Fingerhut 87,230 2,263
Office Depot 89,600 2,789
Premark International 59,660 1,976
Ross Stores 72,000 3,177
TJX 66,040 2,988
--------
17,371
--------
SEMI-CONDUCTORS/INSTRUMENTS -- 1.1%
Novellus Systems 41,090 1,777
--------
STEEL & STEEL WORKS -- 2.3%
LTV 154,380 2,026
USX-U.S. Steel Group 45,700 1,725
--------
3,751
--------
WHOLESALE -- 2.5%
Super-Valu 44,400 2,070
Tech Data* 49,680 1,913
--------
3,983
--------
TOTAL COMMON STOCKS
(Cost $116,535) 156,375
--------
CASH EQUIVALENTS -- 0.6%
SEI Liquid Asset Trust
Government Portfolio $ 507 507
SEI Liquid Asset Trust
Treasury Portfolio 497 497
--------
TOTAL CASH EQUIVALENTS
(Cost $1,004) 1,004
--------
REPURCHASE AGREEMENT -- 1.0%
UBS SECURITIES
5.920%, dated 03/31/98,
matures 04/01/98, repurchase
price $1,604,012
(collateralized by FNMA
Obligation,
total market value:
$1,636,993) (1) 1,604 1,604
--------
TOTAL REPURCHASE AGREEMENT
(Cost $1,604) 1,604
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
MARCH 31, 1998 25
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
VALUE EQUITY FUND
==========================================
DESCRIPTION VALUE (000)
- ------------------------------------------
TOTAL INVESTMENTS -- 98.9%
(Cost $119,143) $158,983
--------
OTHER ASSETS AND LIABILITIES,
NET -- 1.1% 1,692
--------
NET ASSETS:
FUND SHARES OF CLASS A
(unlimited authorization --
no par value) based on
8,746,331 outstanding shares
of beneficial interest 100,780
FUND SHARES OF CLASS B
(unlimited authorization --
no par value) based on
739,294 outstanding shares
of beneficial interest 10,205
Accumulated net realized gain
on investments 9,854
Net unrealized appreciation
on investments 39,840
Distributions in excess of net
investment income (4)
--------
TOTAL NET ASSETS -- 100.0% $160,675
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $16.93
========
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A
($16.93 / 96.50%) $17.54
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B (2) $16.99
========
- --------------------------------------------------------------------------------
*NON INCOME PRODUCING SECURITY
ADR--AMERICAN DEPOSITORY RECEIPT
FNMA--FEDERAL NATIONAL MORTGAGE ASSOCIATION
(1) TRI-PARTY REPURCHASE AGREEMENT
(2) CLASS B HAS A CONTINGENT DEFERRED SALES CHARGE. FOR A DESCRIPTION OF A
POSSIBLE SALES CHARGE, SEE NOTES TO THE FINANCIAL STATEMENTS.
GROWTH EQUITY FUND
==========================================
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------
COMMON STOCKS -- 92.2%
AEROSPACE & DEFENSE -- 0.3%
Sci Systems* 3,315 $ 118
--------
AIRCRAFT -- 1.5%
Sundstrand 6,230 377
United Technologies 3,035 280
--------
657
--------
APPAREL/TEXTILES-- 2.1%
Cintas 7,340 380
Jones Apparel Group* 9,450 520
--------
900
--------
AUTOMOTIVE -- 1.3%
Federal Mogul 8,060 429
Harley-Davidson 3,480 115
--------
544
--------
BANKS -- 2.3%
Fifth Third Bancorp 1,265 108
First Tennessee
National 2,970 95
Northern Trust 1,460 109
Star Banc 4,360 258
State Street 2,085 142
Synovus Financial 7,905 293
--------
1,005
--------
BEAUTY PRODUCTS -- 0.9%
Colgate-Palmolive 4,580 397
--------
BROADCASTING, NEWSPAPERS &
ADVERTISING -- 1.5%
Clear Channel
Communications* 1,355 133
Interpublic Group 2,855 177
Omnicom Group 7,400 348
--------
658
--------
CHEMICALS -- 0.3%
Praxair 2,760 142
--------
COMMUNICATIONS EQUIPMENT -- 2.6%
ADC Telecommunications* 6,615 182
Molex 7,062 194
Northern Telecom 4,680 302
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
26 MARCH 31, 1998
<PAGE>
GROWTH EQUITY FUND
==========================================
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------
QUALCOMM 2,425 $ 130
Tellabs* 5,800 389
--------
1,197
--------
COMPUTERS & SERVICES-- 3.1%
Adobe Systems 5,065 229
Bay Networks* 5,165 140
Compaq Computer 17,585 455
Creative Technology
Limited* 5,730 129
Diebold 4,290 189
Hewlett Packard 2,065 131
Iomega* 6,660 46
--------
1,319
--------
CONTAINERS & PACKAGING -- 0.2%
Newell 1,990 96
--------
DRUGS -- 6.4%
Bristol-Myers Squibb 4,400 459
Eli Lilly 7,500 447
Merck 4,340 557
Pharmacia Upjohn ADR 3,800 166
Schering Plough 8,200 670
Warner Lambert 2,700 460
--------
2,759
--------
ENTERTAINMENT -- 0.3%
Walt Disney 1,435 153
--------
FINANCIAL SERVICES -- 4.8%
Alliance Capital
Management 2,640 137
American Express 2,545 234
Charles Schwab 2,305 88
FNMA 1,830 116
Franklin Resources 13,500 716
Price (T. Rowe)
Associates 5,585 393
Slm Holding 8,960 391
--------
2,075
--------
FOOD, BEVERAGE & TOBACCO -- 7.3%
Brown-Forman, Cl B 1,895 104
Campbell Soup 8,455 480
Coca-Cola Enterprises 5,540 203
Flowers Industries 7,980 187
H.J. Heinz 7,050 412
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------
Hershey Foods 4,690 $ 336
Interstate Bakeries 8,795 284
Kellogg 4,885 211
Panamerican
Beverage, Cl A 3,430 138
PepsiCo 4,140 177
Quaker Oats 6,400 366
William Wrigley Jr. 3,335 273
--------
3,171
--------
HOTELS & LODGING-- 0.8%
Promus Hotel* 7,088 338
--------
HOUSEHOLD PRODUCTS-- 3.4%
Clorox 2,845 244
General Electric 6,200 534
Hubbell, Cl B 4,520 228
Illinois Tool Works 4,200 272
The Stanley Works 3,475 194
--------
1,472
--------
INDUSTRIAL -- 1.0%
Marriott International* 5,000 186
Marriott International,
Cl A* 5,000 179
Sodexho Marriott
Services* 1,250 33
Vlasic Foods
International* 845 22
--------
420
--------
INSURANCE -- 1.8%
American International
Group 2,257 284
MGIC Investment 4,600 302
SunAmerica 3,810 182
--------
768
--------
LEASING & RENTING-- 0.9%
Pitney Bowes 7,400 371
--------
LEISURE -- 0.5%
Callaway Golf 7,500 218
--------
MACHINERY -- 3.6%
Aeroquip-Vickers 4,415 255
Applied Materials* 5,290 187
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
MARCH 31, 1998 27
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
GROWTH EQUITY FUND
==========================================
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------
Dover 4,250 $ 162
Dresser Industries 7,275 350
Flowserve 7,800 254
SPX 1,560 119
Tyco International
Limited 4,300 235
--------
1,562
--------
MARINE TRANSPORTATION -- 1.0%
Carnival, Cl A 6,170 430
--------
MEASURING DEVICES -- 0.8%
Perkin Elmer 3,090 223
Thermo Instrument
Systems* 4,100 136
--------
359
--------
MEDICAL PRODUCTS & SERVICES -- 4.3%
Biomet 4,000 120
Dentsply International 8,400 262
Guidant 4,325 317
HBO 6,000 362
Health Management
Associates, Cl A* 4,545 130
Healthsouth
Rehabilitation* 3,490 98
Johnson & Johnson 5,000 367
Sybron International* 7,260 190
--------
1,846
--------
MISCELLANEOUS BUSINESS SERVICES -- 6.0%
Adaptec* 5,305 104
Autodesk 5,400 233
BMC Software* 7,180 602
Cisco Systems* 1,672 114
Computer Associates
International 5,070 293
Microsoft* 5,840 523
Peoplesoft* 10,550 556
Shared Medical Systems 1,960 154
--------
2,579
--------
MISCELLANEOUS CONSUMER SERVICES -- 1.0%
Robert Half International* 8,960 430
--------
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------
MISCELLANEOUS MANUFACTURING -- 0.7%
Cognex* 6,545 $ 140
International Game
Technology 4,170 104
Kemet* 4,350 81
--------
325
--------
OFFICE FURNITURE & FIXTURES -- 0.5%
Hon Industries 5,630 207
--------
PETROLEUM & FUEL PRODUCTS -- 7.0%
BJ Services* 4,540 165
Cooper Cameron* 5,855 354
Ensco International 8,750 243
Halliburton 8,505 427
Marine Drilling* 12,160 263
Nabors Industries* 12,320 292
Newfield Exploration* 11,175 291
R & B Falcon* 5,330 158
Schlumberger 5,210 395
Smith International* 2,040 112
Transocean Offshore 6,040 311
--------
3,011
--------
PHOTOGRAPHIC EQUIPMENT & SUPPLIES -- 0.5%
Xerox 2,015 214
--------
PRINTING & PUBLISHING -- 3.8%
Gannett 4,720 339
McGraw Hill 3,420 260
Meredith 13,185 555
Time Warner 3,560 256
Tribune 3,565 251
--------
1,661
--------
PROFESSIONAL SERVICES -- 1.5%
Paychex 6,220 359
ServiceMaster 10,125 289
--------
648
--------
RETAIL -- 10.5%
Barnes & Noble* 3,040 119
Bed Bath and Beyond* 4,440 205
CompUSA* 7,400 192
Dayton Hudson 2,460 216
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
28 MARCH 31, 1998
<PAGE>
GROWTH EQUITY FUND
==========================================
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------
Dollar General 5,428 $ 210
Dollar Tree Stores* 3,715 197
Family Dollar Stores 3,380 128
Fred Meyer* 6,935 320
Gap 7,462 336
General Nutrition* 10,485 417
Home Depot 2,997 202
Kohls* 4,035 330
Kroger* 7,200 333
Ross Stores 4,710 208
Staples* 5,490 127
Tandy 2,255 106
TJX 10,000 453
Wal-Mart 2,480 126
Walgreen 8,260 291
--------
4,516
--------
RUBBER & PLASTIC-- 0.5%
Sealed Air* 3,100 203
--------
SEMI-CONDUCTORS/INSTRUMENTS -- 1.7%
American Power
Conversion* 3,075 88
Amphenol* 4,013 232
Linear Technology 3,025 209
Vitesse Semiconductor* 4,162 196
--------
725
--------
TELEPHONES & TELECOMMUNICATION -- 5.0%
Airtouch
Communications* 2,480 121
Ameritech 2,930 145
AT&T 1,730 114
Bell Atlantic 3,000 308
BellSouth 5,300 358
Cincinnati Bell 6,200 221
Ericsson Telephone, ADR 4,355 207
Lucent Technologies 3,786 484
Southern New England
Telecom 985 71
U.S. West 2,625 144
--------
2,173
--------
DESCRIPTION SHARES/PAR (000) VALUE (000)
- ------------------------------------------
WHOLESALE -- 0.5%
Cardinal Health 1,205 $ 106
SYSCO 4,600 118
--------
224
--------
TOTAL COMMON STOCKS
(Cost $28,492) 39,891
--------
CASH EQUIVALENTS -- 4.5%
SEI Liquid Asset Trust
Government Portfolio $ 841 841
SEI Liquid Asset Trust
Treasury Portfolio 1,089 1,089
--------
TOTAL CASH EQUIVALENTS
(Cost $1,930) 1,930
--------
REPURCHASE AGREEMENT -- 2.5%
UBS SECURITIES
5.920%, dated 3/31/98,
matures 04/01/98, repurchase
price $1,083,220
(collateralized by
Resolution Funding
Corporation Obligation:
total market value:
$1,106,304) (1) 1,083 1,083
--------
TOTAL REPURCHASE AGREEMENT
(Cost $1,083) 1,083
--------
TOTAL INVESTMENTS -- 99.2%
(Cost $31,505) 42,904
--------
OTHER ASSETS AND LIABILITIES,
NET -- 0.8% 365
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
MARCH 31, 1998 29
<PAGE>
STATEMENT OF NET ASSETS
(UNAUDITED)
GROWTH EQUITY FUND
==========================================
DESCRIPTION VALUE (000)
- ------------------------------------------
NET ASSETS:
FUND SHARES OF CLASS A
(unlimited authorization --
no par value) based on
2,387,522 outstanding shares
of beneficial interest $29,272
FUND SHARES OF CLASS B
(unlimited authorization --
no par value) based on
134,812 outstanding shares
of beneficial interest 1,880
Accumulated net realized gain
on investments 721
Net unrealized appreciation
on investments 11,399
Distributions in excess of net
investment income (3)
-------
TOTAL NET ASSETS -- 100.0% $43,269
=======
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $17.16
=======
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A
($17.16 / 96.50%) $17.78
=======
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B (2) $17.04
=======
- --------------------------------------------------------------------------------
*NON-INCOME PRODUCING SECURITY
ADR--AMERICAN DEPOSITORY RECEIPT
CL--CLASS
FNMA--FEDERAL NATIONAL MORTGAGE ASSOCIATION
(1) TRI-PARTY REPURCHASE AGREEMENT
(2) CLASS B HAS A CONTINGENT DEFERRED SALES CHARGE. FOR A DESCRIPTION OF A
POSSIBLE SALES CHARGE, SEE NOTES TO THE FINANCIAL STATEMENTS.
SMALL CAP EQUITY FUND
==========================================
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------
INVESTMENT COMPANY -- 105.4%
SEI Institutional Managed
Trust Small Cap
Growth Portfolio 294,379 $5,464
------
TOTAL INVESTMENT COMPANY
(Cost $4,953) 5,464
------
TOTAL INVESTMENTS-- 105.4%
(Cost $4,953) 5,464
------
OTHER ASSETS AND LIABILITIES,
NET -- (5.4%) (278)
------
NET ASSETS:
FUND SHARES OF CLASS A
(unlimited authorization --
no par value) based on
383,557 outstanding shares
of beneficial interest 3,914
FUND SHARES OF CLASS B
(unlimited authorization --
no par value) based on 50,507
outstanding shares
of beneficial interest 510
Accumulated net realized gain
on investments 262
Net unrealized appreciation
on investments 511
Distributions in excess of net
investment income (11)
------
TOTAL NET ASSETS -- 100.0% $5,186
======
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $11.96
======
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A
($11.96 / 96.50%) $12.39
======
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B (1) $11.87
======
- --------------------------------------------------------------------------------
(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 MARCH 31, 1998
<PAGE>
INTERNATIONAL EQUITY FUND
==========================================
DESCRIPTION SHARES VALUE (000)
- ------------------------------------------
INVESTMENT COMPANY -- 100.1%
SEI International Trust
International Equity
Portfolio 238,049 $2,521
------
TOTAL INVESTMENT COMPANY
(Cost $2,497) 2,521
------
TOTAL INVESTMENTS -- 100.1%
(Cost $2,497) 2,521
------
OTHER ASSETS AND LIABILITIES,
NET -- (0.1%) (3)
------
NET ASSETS
Fund Shares of Class A
(unlimited authorization --
no par value) based on
201,138 outstanding shares
of beneficial interest 2,218
Fund Shares of Class B
(unlimited authorization --
no par value) based on 29,738
outstanding shares
of beneficial interest 319
Accumulated net realized loss
on investments (41)
Net unrealized appreciation
on investments 24
Distributions in excess of net
investment income (2)
------
TOTAL NET ASSETS -- 100.0% $2,518
======
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $10.91
======
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A
($10.91 / 96.50%) $11.31
======
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B (1) $10.85
======
- --------------------------------------------------------------------------------
(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.
MARCH 31, 1998 31
<PAGE>
This Page Left Intentionally Blank
32 MARCH 31, 1998
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES (000)
MARCH 31, 1998 (UNAUDITED)
--------------
STRATEGIC
INCOME BOND
FUND
--------------
<S> <C>
ASSETS:
Investments at Market Value
(Cost $15,376) $15,862
Accrued Income 199
Receivables for Capital Shares Sold 918
-------
Total Assets 16,979
-------
LIABILITIES:
Payables for Capital Shares Repurchased 2
Accrued Expenses 45
Distribution Payable 84
Other Liabilities 3
-------
Total Liabilities 134
-------
NET ASSETS:
Fund shares of Class A (unlimited authorization -- no par value)
based on 1,578,030 outstanding shares of beneficial interest 15,780
Fund shares of Class B (unlimited authorization -- no par value)
based on 58,864 outstanding shares of beneficial interest 589
Accumulated net realized loss on investments (10)
Net unrealized appreciation on investments 486
-------
TOTAL NET ASSETS $16,845
=======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE -- CLASS A $ 10.29
=======
MAXIMUM PUBLIC OFFERING PER SHARE -- CLASS A ($10.29 / 96.50%) $ 10.66
=======
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE -- CLASS B (1) $ 10.29
=======
<FN>
(1) CLASS B HAS A CONTINGENT DEFERRED SALES CHARGE. FOR A DESCRIPTION OF A
POSSIBLE SALES CHARGE, SEE NOTES TO THE FINANCIAL STATEMENTS.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
MARCH 31, 1998 33
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS (000)
(UNAUDITED)
TREASURY STRATEGIC LOUISIANA
INSTITUTIONAL SECURITIES TAX EXEMPT GOVERNMENT INCOME TAX-FREE
MONEY MARKET MONEY MARKET MONEY MARKET SECURITIES BOND INCOME
FUND FUND FUND FUND FUND FUND
------------- ------------ ------------ ---------- ---------- ----------
10/1/97 10/1/97 10/1/97 10/1/97 10/1/97 10/1/97
TO 3/31/98 TO 3/31/98 TO 3/31/98 TO 3/31/98 TO 3/31/98 TO 3/31/98
------------- ------------ ------------ ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $1,822 $36,394 $2,481 $4,631 $561 $ 996
Dividend income -- -- -- -- -- --
------ ------- ------ ------ ---- ------
TOTAL INVESTMENT INCOME 1,822 36,394 2,481 4,631 561 996
------ ------- ------ ------ ---- ------
EXPENSES:
Administration fees 32 980 102 113 12 31
Less: waiver of administration fees -- (78) (24) (27) (3) (8)
Investment advisory fees 49 1,959 304 414 60 73
Less: waiver of investment
advisory fees (49) -- (3) (33) (23) (1)
Custodian fees 10 180 19 21 2 6
Transfer agent fees 17 34 12 18 13 21
Distribution fees (1) -- 1,430 169 4 2 7
Less: waiver of distribution fees (1) -- (378) (169) -- -- --
Professional fees 12 52 14 8 7 7
Registration fees 9 74 7 2 1 5
Trustee fees -- 9 1 1 -- --
Printing expense 1 26 2 4 1 --
Amortization of deferred
organization costs -- 14 1 3 -- --
Insurance and other fees 1 16 5 3 4 1
------ ------- ------ ------ ---- ------
TOTAL EXPENSES 82 4,318 440 531 76 142
------ ------- ------ ------ ---- ------
LESS:
Reimbursement by Administrator -- -- -- -- -- --
------ ------- ------ ------ ---- ------
NET INVESTMENT INCOME 1,740 32,076 2,041 4,100 485 854
------ ------- ------ ------ ---- ------
NET REALIZED GAIN (LOSS) ON SECURITIES SOLD -- -- -- 56 (10) --
CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENT SECURITIES -- -- -- 1,577 247 327
------ ------- ------ ------ ---- ------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS -- -- -- 1,633 237 327
------ ------- ------ ------ ---- ------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $1,740 $32,076 $2,041 $5,733 $722 $1,181
====== ======= ====== ====== ==== ======
VALUE GROWTH SMALL CAP INTERNATIONAL
BALANCED EQUITY EQUITY EQUITY EQUITY
FUND FUND FUND FUND FUND
---------- ---------- ---------- ---------- ----------
10/1/97 10/1/97 10/1/97 10/1/97 10/1/97
TO 3/31/98 TO 3/31/98 TO 3/31/98 TO 3/31/98 TO 3/31/98
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $ 1,915 $ 1,330 $ 89 $ -- $123
Dividend income 717 119 157 -- --
------- ------- ------ ---- ----
TOTAL INVESTMENT INCOME 2,632 1,449 246 -- 123
------- ------- ------ ---- ----
EXPENSES:
Administration fees 104 110 29 3 2
Less: waiver of administration fees (25) (9) (6) (3) (2)
Investment advisory fees 515 544 144 9 6
Less: waiver of investment
advisory fees (24) -- (1) (5) (3)
Custodian fees 18 21 6 1 --
Transfer agent fees 20 32 15 12 12
Distribution fees (1) 16 41 7 2 2
Less: waiver of distribution fees (1) -- -- -- -- --
Professional fees 6 16 3 -- --
Registration fees 1 15 3 1 --
Trustee fees 1 1 -- -- --
Printing expense 3 2 1 5 6
Amortization of deferred
organization costs 2 1 1 1 --
Insurance and other fees 2 1 -- -- --
------- ------- ------ ---- ----
TOTAL EXPENSES 639 775 202 (26) 23
------- ------- ------ ---- ----
LESS:
Reimbursement by Administrator -- -- -- (19) (18)
------- ------- ------ ---- ----
NET INVESTMENT INCOME 1,993 674 44 (7) 118
------- ------- ------ ---- ----
NET REALIZED GAIN (LOSS) ON SECURITIES SOLD 4,852 9,725 1,098 335 (3)
CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENT SECURITIES 4,382 6,202 3,319 (318) (69)
------- ------- ------ ---- ----
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS 9,234 15,927 4,417 17 (72)
------- ------- ------ ---- ----
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $11,227 $16,601 $4,461 $ 10 $ 46
======= ======= ====== ==== ====
<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 REASURY SECURITIES MONEY MARKET
FUND AND THE CLASS B LEVEL FOR NON-DOLLAR FUNDS.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
34 & 35 MARCH 31, 1998
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (000)
(UNAUDITED)
INSTITUTIONAL TREASURY SECURITIES TAX EXEMPT GOVERNMENT
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND SECURITIES FUND
---------------------- ------------------------ ------------------------ ----------------------
10/1/97 10/1/96 10/1/97 10/1/96 10/1/97 10/1/96 10/1/97 10/1/96
TO 3/31/98 TO 9/30/97 TO 3/31/98 TO 9/30/97 TO 3/31/98 TO 9/30/97 TO 3/31/98 TO 9/30/97
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net investment income (loss) $ 1,740 $ 2,995 $ 32,076 $ 56,781 $ 2,041 $ 2,368 $ 4,100 $ 8,587
Net realized gain (loss) on
securities sold -- -- -- 3 -- -- 56 (19)
Net unrealized appreciation
(depreciation) of investment
securities -- -- -- -- -- -- 1,577 3,734
--------- --------- --------- ----------- ------- --------- -------- --------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 1,740 2,995 32,076 56,784 2,041 2,368 5,733 12,302
--------- --------- --------- ----------- ------- --------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
Income distribution Class A (1) (1,740) (2,995) (13,441) (30,423) (2,041) (2,368) (4,074) (8,550)
Income distribution Class B (2) -- -- (14,441) (24,421) -- -- (27) (37)
Income distribution Class C (3) -- -- (4,194) (1,937) -- -- -- --
Capital gain distribution
Class A (1) -- -- -- -- -- -- -- --
Capital gain distribution
Class B (2) -- -- -- -- -- -- -- --
--------- --------- --------- ----------- ------- --------- -------- --------
TOTAL DISTRIBUTIONS (1,740) (2,995) (32,076) (56,781) (2,041) (2,368) (4,101) (8,587)
--------- --------- --------- ----------- ------- --------- -------- --------
SHARE TRANSACTIONS:
Class A (1):
Shares issued 165,279 340,575 799,668 1,432,933 -- -- 18,519 38,560
Shares issued in lieu of
cash distribution -- -- 3 334 -- -- 1,830 4,088
Shares redeemed (108,445) (310,063) (947,230) (1,514,130) -- -- (22,343) (57,641)
--------- --------- --------- ----------- ------- --------- -------- --------
TOTAL CLASS A SHARE
TRANSACTIONS 56,834 30,512 (147,559) (80,863) -- -- (1,994) (14,993)
--------- --------- --------- ----------- ------- --------- -------- --------
Class B (2):
Shares issued -- -- 589,087 1,126,969 260,954 154,486 154 595
Shares issued in lieu of
cash distribution -- -- 8,255 12,486 841 1,280 23 34
Shares redeemed -- -- (591,777) (945,606) (202,733) (145,236) (106) (107)
--------- --------- --------- ----------- ------- --------- -------- --------
TOTAL CLASS B SHARE
TRANSACTIONS -- -- 5,565 193,849 59,062 10,530 71 522
--------- --------- --------- ----------- ------- --------- -------- --------
Class C (3):
Shares issued -- -- 249,386 312,106 -- -- -- --
Shares issued in lieu of
cash distribution -- -- -- -- -- -- -- --
Shares redeemed -- -- (248,548) (109,894) -- -- -- --
--------- --------- --------- ----------- ------- --------- -------- --------
TOTAL CLASS C SHARE
TRANSACTIONS -- -- 838 202,212 -- -- -- --
--------- --------- --------- ----------- ------- --------- -------- --------
INCREASE (DECREASE) IN NET ASSETS
FROM SHAREHOLDER TRANSACTIONS 56,834 30,512 (141,156) 315,198 59,062 10,530 (1,923) (14,471)
--------- --------- --------- ----------- ------- --------- -------- --------
TOTAL INCREASE (DECREASE) IN
NET ASSETS 56,834 30,512 (141,156) 315,201 59,062 10,530 (291) (10,756)
--------- --------- --------- ----------- ------- --------- -------- --------
STRATEGIC INCOME LOUISIANA TAX-FREE VALUE
BOND FUND (4) INCOME FUND BALANCED FUND EQUITY FUND
- ------------------------ ------------------------ ------------------------- -------------------------
10/1/97 1/31/97 10/1/97 10/1/96 10/1/97 10/1/96 10/1/97 10/1/96
TO 3/31/98 TO 9/30/97 TO 3/31/98 TO 9/30/97 TO 3/31/98 TO 9/30/97 TO 3/31/98 TO 9/30/97
- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 485 $ 562 $ 854 $ 1,236 $ 1,993 $ 3,757 $ 674 $ 1,498
(10) -- -- -- 4,852 12,142 9,725 18,764
247 239 327 1,038 4,382 13,260 6,202 23,918
------- ------- ------ ------- -------- -------- -------- -------
722 801 1,181 2,274 11,227 29,159 16,601 44,180
------- ------- ------ ------- -------- -------- -------- -------
(470) (554) (823) (1,206) (1,946) (3,676) (664) (1,459)
(15) (8) (31) (30) (47) (68) (14) (39)
-- -- -- -- -- -- -- --
-- -- -- -- (10,469) (4,877) (17,387) (5,916)
-- -- -- -- (332) (98) (1,312) (269)
------- ------- ------ ------- -------- -------- -------- -------
(485) (562) (854) (1,236) (12,794) (8,719) (19,377) (7,683)
------- ------- ------ ------- -------- -------- -------- -------
2,460 17,068 7,260 21,750 9,690 15,119 23,502 32,366
217 261 406 546 11,495 7,838 9,577 3,882
(2,230) (1,996) (2,397) (5,774) (10,050) (22,355) (16,390) (30,068)
------- ------- ------ ------- -------- -------- -------- -------
447 15,333 5,269 16,522 11,135 602 16,689 6,180
------- ------- ------ ------- -------- -------- -------- -------
130 454 979 429 665 1,543 1,869 4,063
9 6 23 22 336 146 1,189 280
(10) -- (69) (67) (103) (231) (358) (456)
------- ------- ------ ------- -------- -------- -------- -------
129 460 933 384 898 1,458 2,700 3,887
------- ------- ------ ------- -------- -------- -------- -------
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
------- ------- ------ ------- -------- -------- -------- -------
-- -- -- -- -- -- -- --
------- ------- ------ ------- -------- -------- -------- -------
576 15,793 6,202 16,906 12,033 2,060 19,389 10,067
------- ------- ------ ------- -------- -------- -------- -------
813 16,032 6,529 17,944 10,466 22,500 16,613 46,564
------- ------- ------ ------- -------- -------- -------- -------
GROWTH EQUITY SMALL CAP INTERNATIONAL
FUND EQUITY FUND (4) EQUITY FUND (4)
- ------------------------ ----------------------- ------------------------
10/1/97 10/1/96 10/1/97 1/31/97 10/1/97 1/31/97
TO 3/31/98 TO 9/30/97 TO 3/31/98 TO 9/30/97 TO 3/31/98 TO 9/30/97
- ---------- ---------- ---------- ---------- ---------- ----------
$ 44 $ 113 $ (7) $ (4) $ 118 $ (4)
1,098 818 335 (9) (3) 6
3,319 6,453 (318) 829 (69) 93
------- ------- ------ ------ ------- ------
4,461 7,384 10 816 46 95
------- ------- ------ ------ ------- ------
(46) (114) -- -- (104) --
-- -- -- -- (13) --
-- -- -- -- -- --
(1,066) -- (56) -- (38) --
(56) -- (8) -- (5) --
------- ------- ------ ------ ------- ------
(1,168) (114) (64) -- (160) --
------- ------- ------ ------ ------- ------
10,724 15,927 1,934 3,707 500 3,447
770 79 27 -- 24 --
(5,245) (9,836) (951) (803) (1,655) (96)
------- ------- ------ ------ ------- ------
6,249 6,170 1,010 2,904 (1,131) 3,349
------- ------- ------ ------ ------- ------
342 1,472 71 565 30 356
51 -- 7 -- 15 --
(74) (56) (118) (15) (75) (7)
------- ------- ------ ------ ------- ------
319 1,416 (40) 550 (30) 349
------- ------- ------ ------ ------- ------
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
------- ------- ------ ------ ------- ------
-- -- -- -- -- --
------- ------- ------ ------ ------- ------
6,568 7,586 969 3,454 (1,161) 3,698
------- ------- ------ ------ ------- ------
9,861 14,856 916 4,270 (1,275) 3,793
------- ------- ------ ------ ------- ------
<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 AND TAX EXEMPT MONEY MARKET FUND.
(3) CASH SWEEP CLASS FOR TREASURY SECURITIES MONEY MARKET FUND.
(4) THE STRATEGIC INCOME BOND FUND, SMALL CAP EQUITY FUND AND INTERNATIONAL
EQUITY FUND COMMENCED OPERATIONS ON JANUARY 31, 1997.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
MARCH 31, 1998 36 & 37
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (000)
(UNAUDITED)
INSTITUTIONAL TREASURY SECURITIES TAX EXEMPT GOVERNMENT
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND SECURITIES FUND
---------------------- ------------------------ ------------------------ ----------------------
10/1/97 10/1/96 10/1/97 10/1/96 10/1/97 10/1/96 10/1/97 10/1/96
TO 3/31/98 TO 9/30/97 TO 3/31/98 TO 9/30/97 TO 3/31/98 TO 9/30/97 TO 3/31/98 TO 9/30/97
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSETS:
Beginning of period $ 58,516 $ 28,004 $1,364,088 $ 1,048,887 $ 76,744 $ 66,214 $150,084 $160,840
--------- --------- ---------- ----------- --------- --------- -------- --------
End of period $ 115,350 $ 58,516 $1,222,932 $ 1,364,088 $ 135,806 $ 76,744 $149,793 $150,084
========= ========= ========== =========== ========= ========= ======== ========
SHARES ISSUED AND
REDEEMED:
Class A (1):
Issued 165,279 340,575 799,668 1,432,933 -- -- 1,842 3,925
Issued in lieu of cash
distribution -- -- 3 334 -- -- 182 416
Redeemed (108,445) (310,063) (947,230) (1,514,130) -- -- (2,220) (5,864)
--------- --------- ---------- ----------- --------- --------- -------- --------
TOTAL CLASS A SHARE
TRANSACTIONS 56,834 30,512 (147,559) (80,863) -- -- (196) (1,523)
--------- --------- ---------- ----------- --------- --------- -------- --------
Class B (2):
Issued -- -- 589,087 1,126,969 260,954 154,486 15 61
Issued in lieu of cash
distribution -- -- 8,255 12,486 841 1,280 2 3
Redeemed -- -- (591,777) (945,607) (202,733) (145,236) (10) (11)
--------- --------- ---------- ----------- --------- --------- -------- --------
TOTAL CLASS B SHARE
TRANSACTIONS -- -- 5,565 193,848 59,062 10,530 7 53
--------- --------- ---------- ----------- --------- --------- -------- --------
Class C (3):
Issued -- -- 249,386 312,106 -- -- -- --
Issued in lieu of cash
distribution -- -- -- -- -- -- -- --
Redeemed -- -- (248,548) (109,894) -- -- -- --
--------- --------- ---------- ----------- --------- --------- -------- --------
TOTAL CLASS C SHARE
TRANSACTIONS -- -- 838 202,212 -- -- -- --
--------- --------- ---------- ----------- --------- --------- -------- --------
NET INCREASE (DECREASE) IN
SHARE TRANSACTIONS 56,834 30,512 (141,156) 315,197 59,062 10,530 (189) (1,470)
========= ========= ========== =========== ========= ========= ======== ========
STRATEGIC INCOME LOUISIANA TAX-FREE VALUE
BOND FUND (4) INCOME FUND BALANCED FUND EQUITY FUND
------------------------ ------------------------ ------------------------- -------------------------
10/1/97 1/31/97 10/1/97 10/1/96 10/1/97 10/1/96 10/1/97 10/1/96
TO 3/31/98 TO 9/30/97 TO 3/31/98 TO 9/30/97 TO 3/31/98 TO 9/30/97 TO 3/31/98 TO 9/30/97
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$16,032 $ -- $39,608 $21,664 $138,880 $116,380 $144,062 $ 97,498
------- ------- ------- ------- -------- -------- -------- --------
$16,845 $16,032 $46,137 $39,608 $149,346 $138,880 $160,675 $144,062
======= ======= ======= ======= ======== ======== ======== ========
237 1,710 710 2,204 752 1,283 1,430 2,231
22 26 40 55 940 676 634 294
(216) (201) (233) (593) (775) (1,891) (1,006) (2,070)
------- ------- ------- ------- -------- -------- -------- --------
43 1,535 517 1,666 917 68 1,058 455
------- ------- ------- ------- -------- -------- -------- --------
13 46 96 43 51 127 115 271
1 1 2 2 28 13 79 21
(1) -- (6) (7) (8) (19) (22) (32)
------- ------- ------- ------- -------- -------- -------- --------
13 47 92 38 71 121 172 260
------- ------- ------- ------- -------- -------- -------- --------
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
------- ------- ------- ------- -------- -------- -------- --------
-- -- -- -- -- -- -- --
------- ------- ------- ------- -------- -------- -------- --------
56 1,582 609 1,704 988 189 1,230 715
======= ======= ======= ======= ======== ======== ======== ========
GROWTH EQUITY SMALL CAP INTERNATIONAL
FUND EQUITY FUND (4) EQUITY FUND (4)
- ------------------------ ----------------------- ------------------------
10/1/97 10/1/96 10/1/97 1/31/97 10/1/97 1/31/97
TO 3/31/98 TO 9/30/97 TO 3/31/98 TO 9/30/97 TO 3/31/98 TO 9/30/97
- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
$ 33,408 $18,552 $4,270 $ -- $3,793 $ --
-------- ------- ------ ------ ------ ------
$ 43,269 $33,408 $5,186 $4,270 $2,518 $3,793
======== ======= ====== ====== ====== ======
669 1,198 168 380 48 322
52 6 3 -- 2 --
(332) (726) (83) (83) (162) (9)
-------- ------- ------ ------ ------ ------
389 478 88 297 (112) 313
-------- ------- ------ ------ ------ ------
22 106 7 55 3 33
4 -- 1 -- 1 --
(5) (4) (11) (1) (7) (1)
-------- ------- ------ ------ ------ ------
21 102 (3) 54 (3) 32
-------- ------- ------ ------ ------ ------
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-------- ------- ------ ------ ------ ------
-- -- -- -- -- --
-------- ------- ------ ------ ------ ------
410 580 85 351 (115) 345
======== ======= ====== ====== ====== ======
<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 AND TAX EXEMPT MONEY MARKET FUND.
(3) CASH SWEEP CLASS FOR TREASURY SECURITIES MONEY MARKET FUND.
(4) THE STRATEGIC INCOME BOND FUND, SMALL CAP EQUITY FUND AND INTERNATIONAL EQUITY FUND COMMENCED
OPERATIONS ON JANUARY 31, 1997.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
38 & 39 MARCH 31, 1998
<PAGE>
FINANCIAL HIGHLIGHTS
(UNAUDITED)
FOR A SHARE OUTSTANDING THROUGHOUT THE SIX-MONTH PERIOD ENDED MARCH 31, 1998 AND
THE PERIODS ENDED SEPTEMBER 30.
<TABLE>
<CAPTION>
NET ASSET REALIZED DISTRIBUTIONS
VALUE NET AND UNREALIZED FROM NET NET ASSET NET ASSETS
BEGINNING INVESTMENT GAINS OR (LOSSES) INVESTMENT VALUE TOTAL END OF
OF PERIOD INCOME ON INVESTMENTS INCOME END OF PERIOD RETURN+ PERIOD (000)
- -----------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1998 $ 1.00 $0.03 -- $(0.03) $ 1.00 5.41%* $115,350
1997 1.00 0.05 -- (0.05) 1.00 5.29 58,516
1996 1.00 0.05 -- (0.05) 1.00 5.33 28,004
1995(4) 1.00 0.01 -- (0.01) 1.00 5.55* 31,314
- -----------------------------------------------------------------------------------------------------------------------------
TREASURY SECURITIES MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------------------------------------
TRUST CLASS
1998 $ 1.00 $0.03 -- $(0.03) $ 1.00 5.16%* $409,395
1997 1.00 0.05 -- (0.05) 1.00 5.04 556,957
1996 1.00 0.05 -- (0.05) 1.00 5.06 637,819
1995 1.00 0.05 -- (0.05) 1.00 5.33 521,270
1994 1.00 0.03 -- (0.03) 1.00 3.22 403,778
RETAIL CLASS
1998 $ 1.00 $0.02 -- $(0.02) $ 1.00 4.95%* $610,485
1997 1.00 0.05 -- (0.05) 1.00 4.83 604,919
1996 1.00 0.05 -- (0.05) 1.00 4.86 411,068
1995 1.00 0.05 -- (0.05) 1.00 5.16 282,747
1994(1) 1.00 0.03 -- (0.03) 1.00 3.15* 86,848
- -----------------------------------------------------------------------------------------------------------------------------
SWEEP CLASS
1998 $ 1.00 $0.02 -- $(0.02) $ 1.00 4.60%* $203,052
1997(10) 1.00 0.03 -- (0.03) 1.00 4.46* 202,212
- -----------------------------------------------------------------------------------------------------------------------------
TAX EXEMPT MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------------------------------------
RETAIL CLASS
1998 $ 1.00 $0.02 -- $(0.02) $ 1.00 3.17%* $135,806
1997 1.00 0.03 -- (0.03) 1.00 3.12 76,744
1996(5) 1.00 0.01 -- (0.01) 1.00 2.83* 66,214
- -----------------------------------------------------------------------------------------------------------------------------
GOVERNMENT SECURITIES FUND
- -----------------------------------------------------------------------------------------------------------------------------
CLASS A
1998 $ 9.94 $0.27 $ 0.11 $(0.27) $10.05 3.90% $148,648
1997 9.71 0.55 0.23 (0.55) 9.94 8.22 149,022
1996 9.87 0.55 (0.16) (0.55) 9.71 4.10 160,317
1995 9.41 0.54 0.46 (0.54) 9.87 10.84 124,404
1994 10.00 0.43 (0.59) (0.43) 9.41 (1.66) 97,562
CLASS B
1998 $ 9.99 $0.24 $ 0.11 $(0.24) $10.10 3.50% $ 1,145
1997 9.76 0.47 0.24 (0.48) 9.99 7.40 1,062
1996 9.92 0.46 (0.15) (0.47) 9.76 3.23 523
1995 9.46 0.46 0.47 (0.47) 9.92 10.10 244
1994(2) 10.04 0.31 (0.58) (0.31) 9.46 (2.84)* 147
- -----------------------------------------------------------------------------------------------------------------------------
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT
RATIO OF INVESTMENT AVERAGE NET INCOME TO
EXPENSES TO INCOME TO ASSETS AVERAGE PORTFOLIO
AVERAGE AVERAGE (EXCLUDING NET ASSETS TURNOVER
NET ASSETS NET ASSETS WAIVERS) (EXCLUDING WAIVERS) RATE
- -----------------------------------------------------------------------------------------------
INSTITUTIONAL MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1998 0.25% 5.31% 0.40% 5.16% --
1997 0.25 5.19 0.36 5.08 --
1996 0.25 5.19 0.34 5.10 --
1995(4) 0.25* 5.56* 0.60* 5.21* --
- -----------------------------------------------------------------------------------------------
TREASURY SECURITIES MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------
TRUST CLASS
1998 0.50% 5.07% 0.53% 5.04% --
1997 0.50 4.92 0.50 4.92 --
1996 0.50 4.92 0.53 4.89 --
1995 0.50 5.23 0.57 5.16 --
1994 0.50 3.15 0.60 3.05 --
RETAIL CLASS
1998 0.70% 4.87% 0.78% 4.79% --
1997 0.70 4.73 0.75 4.68 --
1996 0.70 4.72 0.78 4.64 --
1995 0.68 5.12 0.82 4.98 --
1994(1) 0.59* 3.27* 0.83* 3.03* --
- -----------------------------------------------------------------------------------------------
SWEEP CLASS
1998 1.00% 4.57% 1.33% 4.24% --
1997(10) 1.00* 4.57* 1.25* 4.32* --
- -----------------------------------------------------------------------------------------------
TAX EXEMPT MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------
RETAIL CLASS
1998 0.65% 3.02% 0.94% 2.73% --
1997 0.65 3.07 0.95 2.77 --
1996(5) 0.65* 2.92* 1.12* 2.45* --
- -----------------------------------------------------------------------------------------------
GOVERNMENT SECURITIES FUND
- -----------------------------------------------------------------------------------------------
CLASS A
1998 0.70% 5.45% 0.78% 5.37% 3.20%
1997 0.70 5.54 0.76 5.48 11.88
1996 0.70 5.53 0.79 5.44 22.80
1995 0.70 5.63 0.84 5.49 18.33
1994 0.70 4.43 0.90 4.23 37.80
CLASS B
1998 1.45% 4.71% 1.53% 4.63% 3.20%
1997 1.45 4.81 1.51 4.75 11.88
1996 1.45 4.81 1.54 4.72 22.80
1995 1.45 4.86 1.59 4.72 18.33
1994(2) 1.45* 3.88* 1.69* 3.64* 37.80
- -----------------------------------------------------------------------------------------------
<FN>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
+ TOTAL RETURN DOES NOT REFLECT SALES LOADS ON CLASS A AND CLASS B SHARES.
* ANNUALIZED.
(1)COMMENCED OPERATIONS ON OCTOBER 19, 1993.
(2)COMMENCED OPERATIONS ON OCTOBER 22, 1993.
(3)COMMENCED OPERATIONS ON NOVEMBER 22, 1993.
(4)COMMENCED OPERATIONS ON AUGUST 10, 1995.
(5)COMMENCED OPERATIONS ON 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.
MARCH 31, 1998 40 & 41
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
(UNAUDITED)
FOR A SHARE OUTSTANDING THROUGHOUT THE SIX-MONTH PERIOD ENDED MARCH 31, 1998
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+
- ---------------------------------------------------------------------------------------------------------------------------------
STRATEGIC INCOME BOND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A
1998 $10.14 $0.31 $ 0.15 $(0.31) -- $10.29 4.52%
1997 (8) 10.00 0.39 0.14 (0.39) -- 10.14 8.26*
CLASS B
1998 $10.14 $0.29 $ 0.13 $(0.27) -- $10.29 4.15%
1997(8) 10.00 0.33 0.16 (0.35) -- 10.14 7.57*
- ---------------------------------------------------------------------------------------------------------------------------------
LOUISIANA TAX-FREE INCOME FUND
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS A
1998 $10.11 $0.21 $ 0.09 $(0.21) -- $10.20 2.95%
1997 9.79 0.43 0.32 (0.43) -- 10.11 7.77
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
1998 $10.11 $0.16 $ 0.10 $(0.17) -- $10.20 2.59%
1997 9.79 0.34 0.33 (0.35) -- 10.11 6.99
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
1998 $13.25 $0.18 $ 0.82 $(0.18) $(1.04) $13.03 8.28%
1997 11.31 0.36 2.44 (0.36) (0.50) 13.25 26.10
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
1998 $13.32 $0.13 $ 0.81 $(0.13) $(1.04) $13.09 7.78%
1997 11.37 0.26 2.47 (0.28) (0.50) 13.32 25.19
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)*
- ---------------------------------------------------------------------------------------------------------------------------------
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
1998 $ 16,239 0.91% 5.97% 1.22% 5.66% 14.42% n/a
1997 (8) 15,562 0.90* 6.22* 1.43* 5.69* 1.34 n/a
CLASS B
1998 $ 606 1.66% 5.23% 1.97% 4.92% 14.42% n/a
1997(8) 470 1.65* 5.49* 2.13* 5.01* 1.34 n/a
- -------------------------------------------------------------------------------------------------------------------------------
LOUISIANA TAX-FREE INCOME FUND
- -------------------------------------------------------------------------------------------------------------------------------
CLASS A
1998 $ 44,055 0.65% 4.12% 0.69% 4.08% 0.09% n/a
1997 38,471 0.61 4.35 0.65 4.31 0.77 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
1998 $ 2,082 1.40% 3.38% 1.44% 3.34% 0.09% n/a
1997 1,137 1.36 3.61 1.40 3.57 0.77 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
1998 $144,548 0.90% 2.89% 0.97% 2.82% 11.53% $.0702
1997 134,941 0.90 3.05 0.96 2.99 40.97 .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
1998 $ 4,798 1.65% 2.15% 1.72% 2.08% 11.53% $.0702
1997 3,939 1.65 2.28 1.71 2.22 40.97 .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
- -------------------------------------------------------------------------------------------------------------------------------
<FN>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
+ TOTAL RETURN DOES NOT REFLECT SALES LOADS ON CLASS A AND CLASS B 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.
(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 MARCH 31, 1998
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
(UNAUDITED)
FOR A SHARE OUTSTANDING THROUGHOUT THE SIX-MONTH PERIOD ENDED MARCH 31, 1998 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 (LOSS) ON INVESTMENTS INCOME GAINS END OF PERIOD RETURN+
- ----------------------------------------------------------------------------------------------------------------------------------
VALUE EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A
1998 $17.44 $ 0.08 $ 1.68 $(0.08) $(2.19) $16.93 11.69%
1997 12.93 0.19 5.32 (0.19) (0.81) 17.44 45.27
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
1998 $17.50 $ 0.02 $ 1.68 $(0.02) $(2.19) $16.99 11.29%
1997 12.97 0.09 5.34 (0.09) (0.81) 17.50 44.31
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
1998 $15.81 $ 0.02 $ 1.80 $(0.02) $(0.45) $17.16 11.95%
1997 12.10 0.06 3.71 (0.06) -- 15.81 31.25
1996 (6) 11.00 0.05 1.10 (0.05) -- 12.10 10.46
CLASS B
1998 $15.74 $(0.03) $ 1.78 -- $(0.45) $17.04 11.55%
1997 12.07 0.03 3.64 -- -- 15.74 30.41
1996 (7) 11.14 0.01 0.93 $(0.01) -- 12.07 8.48
- ----------------------------------------------------------------------------------------------------------------------------------
SMALL CAP EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS A
1998 $12.21 $(0.01) $(0.09) -- $(0.15) $11.96 (0.58)%
1997 (9) 10.00 (0.01) 2.22 -- -- 12.21 33.61*
CLASS B
1998 $12.16 $(0.06) $(0.08) -- $(0.15) $11.87 (0.91)%
1997 (9) 10.00 (0.02) 2.18 -- -- 12.16 32.85*
- ----------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS A
1998 $10.98 $ 0.43 $0.08 $(0.42) $(0.16) $10.91 5.35%
1997 (9) 10.00 (0.01) 0.99 -- -- 10.98 14.90*
CLASS B
1998 $10.94 $ 0.35 $0.11 $(0.39) $(0.16) $10.85 4.97%
1997 (9) 10.00 (0.03) 0.97 -- -- 10.94 14.30*
- ----------------------------------------------------------------------------------------------------------------------------------
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT
RATIO OF INVESTMENT AVERAGE NET INCOME (LOSS)
NET ASSETS EXPENSES TO INCOME (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
1998 $148,113 1.00% 0.97% 1.01% 0.96% 30.46% $.0800
1997 134,117 1.00 1.33 1.00 1.33 97.91 .0798
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
1998 $ 12,562 1.75% 0.23% 1.76% 0.22% 30.46% $.0800
1997 9,944 1.75 0.55 1.75 0.55 97.91 .0798
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
1998 $ 40,972 1.00% 0.26% 1.04% 0.22% 19.83% $.0583
1997 31,608 1.00 0.46 1.04 0.42 65.12 .0799
1996 (6) 18,400 1.00* 0.73* 1.12* 0.61* 91.09 .0797
CLASS B
1998 $ 2,297 1.75% (0.49)% 1.79% (0.53)% 19.83% $.0583
1997 1,800 1.75 (0.30) 1.79 (0.34) 65.12 .0799
1996 (7) 152 1.75* (0.02)* 1.87* (0.14)* 91.09 .0797
- ------------------------------------------------------------------------------------------------------------------------------
SMALL CAP EQUITY FUND
- ------------------------------------------------------------------------------------------------------------------------------
CLASS A
1998 $ 4,587 0.20% (0.20)% 1.43% (1.43)% 15.25% n/a
1997 (9) 3,616 0.20* (0.20)* 1.79* (1.79)* 29.56 n/a
CLASS B
1998 $ 599 0.95% (0.95)% 2.18% (2.18)% 15.25% n/a
1997 (9) 654 0.95* (0.95)* 2.61* (2.61)* 29.56 n/a
- ------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- ------------------------------------------------------------------------------------------------------------------------------
CLASS A
1998 $ 2,195 0.27% 8.48% 1.69% 7.06% 23.95% n/a
1997 (9) 3,435 0.27* (0.27)* 2.21* (2.21)* 4.69 n/a
CLASS B
1998 $ 323 1.02% 7.15% 2.44% 5.73% 23.95% n/a
1997 (9) 358 1.02* (1.02)* 2.86* (2.86)* 4.69 n/a
- ------------------------------------------------------------------------------------------------------------------------------
<FN>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
+ TOTAL RETURN DOES NOT REFLECT SALES LOADS ON CLASS A AND CLASS B 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.
(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.
44 & 45 MARCH 31, 1998
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. ORGANIZATION
The Marquis Funds (the "Trust") was organized as a Massachusetts business trust
under a Declaration of Trust dated June 29, 1993. The Trust is registered under
the Investment Company Act of 1940, as amended, as an open-end management
company with 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, Retail and the Cash Sweep in the
Tax-Exempt Money Market 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 Institutional International Trust (formerly, 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
46 MARCH 31, 1998
<PAGE>
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 Growth
Portfolio and the SEI Institutional International Trust (formerly, the SEI
International Trust) International Equity Portfolio (the "Master Funds"),
respectively, are valued at the net asset value per share of each Master Fund
determined as of the close of the New York Stock Exchange.
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 counter-party 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.
MARCH 31, 1998 47
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
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.
DISTRIBUTIONS -- 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. Any net realized capital gains are declared and distributed to
shareholders at least annually.
Distributions from net investment income and net realized capital gains are
determined in accordance with U.S. Federal income tax regulations, which may
differ from those amounts determined under generally accepted accounting
principles. These book/tax differences are either temporary or permanent in
nature. To the extent these differences are permanent, they are charged or
credited to paid in capital in the period that the differences arises.
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
amounts of revenue and expenses during the reporting period. Actual results
could differ from those estimates.
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
48 MARCH 31, 1998
<PAGE>
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 Investments Management Corporation, a wholly-owned
subsidiary of SEI Investments, 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 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 Investments Distribution Co. (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 the Treasury
Securities Money Market Fund and Tax Exempt Money Market Fund, and .75% of the
Class B shares of the Non-Dollar Funds and the Cash Sweep Class of the Treasury
Securities Money Market Fund 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 and the Tax Exempt 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.
MARCH 31, 1998 49
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
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.
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, 1998 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 $ 2,463 $1,252 $ -- $10,202
Other 1,935 2,561 4,057 8,869
SALES:
U.S.
Government $ 7,879 $1,788 $ -- $ 1,163
Other 2,835 247 35 14,296
INTER-
VALUE GROWTH SMALL CAP NATIONAL
EQUITY EQUITY EQUITY EQUITY
FUND FUND FUND FUND
(000) (000) (000) (000)
-------- -------- --------- --------
PURCHASES:
U.S.
Government $ -- $ -- $ -- $ --
Other 43,578 11,669 2,154 638
SALES:
U.S.
Government $ -- $ -- $ -- $ --
Other 45,861 7,040 732 1,796
On March 31, 1998, the total cost of securities and the net realized gains or
losses on securities sold for federal income tax purposes were not materially
different from amounts reported for financial reporting purposes. The aggregate
gross unrealized appreciation and depreciation on securities at March 31, 1998,
for each Non-Dollar Fund are as follows:
50 MARCH 31, 1998
<PAGE>
STRATEGIC LOUISIANA
GOVERNMENT INCOME TAX-FREE
SECURITIES BOND INCOME BALANCED
FUND FUND FUND FUND
(000) (000) (000) (000)
---------- ---------- ---------- ----------
Aggregate Gross
Unrealized
Appreciation $1,883 $495 $1,385 $26,597
Aggregate Gross
Unrealized
Depreciation (177) (9) (28) (1,106)
------- ------- ------- -------
Net Unrealized
Appreciation/
(Depreciation) $1,706 $486 $1,357 $25,491
======= ======= ======= =======
INTER-
VALUE GROWTH SMALL CAP NATIONAL
EQUITY EQUITY EQUITY EQUITY
FUND FUND FUND FUND
(000) (000) (000) (000)
-------- -------- --------- --------
Aggregate Gross
Unrealized
Appreciation $41,409 $12,203 $511 $24
Aggregate Gross
Unrealized
Depreciation (1,569) (804) -- --
------- ------- ------- -------
Net Unrealized
Appreciation/
(Depreciation) $39,840 $11,399 $511 $24
======= ======= ======= =======
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.
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, 1998, the percentages of portfolio investments by each revenue source
were as follows:
TAX EXEMPT
MONEY MARKET FUND
-----------------
Revenue Bonds 62%
Anticipation Notes 28%
General Obligations 7%
Tax-Exempt
Commercial Paper 3%
-----------------
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, 1998.
MARCH 31, 1998 51
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
STRATEGIC LOUISIANA
GOVERNMENT INCOME TAX-FREE
SECURITIES BOND INCOME
RATING FUND FUND FUND
- --------- ---------- --------- ---------
AAA 89% 28% 80%
AA --% 5% --
A --% 40% 4%
BBB -- 24% --
Not Rated 11% 3% 16%
---------- --------- ---------
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 CARRYFORWARDS
The Funds had capital loss carryforwards and post-October deferred losses at
September 30, 1997, to the extent provided in the regulations for federal income
tax as follows:
POST
CAPITAL LOSS OCTOBER 31,
CARRYFORWARDS EXPIRING 1996
--------------------------- DEFERRED
FUNDS 2003 2004 2005 LOSSES
- -------- --------------------------- ---------
Government
Securities
Fund $679,660 $124,634 $ -- $19,540
Louisiana
Tax-Free
Income
Fund 32,125 2,083 19,720 --
Small Cap
Equity Fund -- -- -- 9,414
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 1998 for tax purposes.
8. MERGER
On October 20, 1997, First Commerce Corporation -- the parent of First National
Bank of Commerce in New Orleans, the Marquis Funds' investment adviser -- and
Banc One Corporation, the parent of Banc One, Louisiana, announced that they
have signed a definitive agreement for the merger of First Commerce with Banc
One. Subject to certain conditions being met, it is currently anticipated that
First Commerce will merge with Banc One by the end of June 1998.
It is expected that each of the Marquis Funds will eventually merge into a
comparable One Group Fund.
52 MARCH 31, 1998
<PAGE>
[LOGO OMITTED]
MARQUIS [SERVICE MARK]
FAMILY OF FUNDS
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 [BULLET] NO BANK GUARANTEE [BULLET] MAY LOSE VALUE
- --------------------------------------------------------------------------------
The First NBC Trust Group is a department of First National Bank of Commerce
("First NBC"), a wholly owned subsidiary of First Commerce Corporation ("FCC").
First NBC serves as investment adviser and custodian for the Marquis Funds;
remuneration may be earned for such services. The Marquis Funds are distributed
by SEI Investments Distribution Co., 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) 1998 MRQ-F-005-05
