<PAGE>
Annual Report
October 31, 1995
Home for your investments/sm/
[ART]
Montag & Caldwell Growth Fund
Chicago Trust Growth & Income Fund
Chicago Trust Talon Fund
Chicago Trust Asset Allocation Fund
Montag & Caldwell Balanced Fund
Chicago Trust Bond Fund
Chicago Trust Municipal Bond Fund
Chicago Trust Money Market Fund
[CT&T FUNDS LOGO]
The Chicago Trust Company, Investment Advisor
Montag & Caldwell, Inc., Investment Advisor
<PAGE>
December 27, 1995
Dear Shareowner,
Fiscal year 1995 has been an exciting year for owners of shares in our Funds.
The stock market, as measured by the popular averages, is up around 26% and
the intermediate-term bond market has increased by about 14%. The continued
bull market in stocks and bonds surprised many market observers, but for those
prescient souls who stayed the course, account balances are a lot fatter today
than they were at this time last year.
We are very pleased with the performance of our flagship equity funds, the
Chicago Trust Growth & Income Fund and the Montag & Caldwell Growth Fund. For
the fiscal year ended October 31, 1995, both Funds outperformed their
respective peer groups and the S&P 500. Similarly, the Montag & Caldwell
Balanced Fund, the Chicago Trust Bond Fund and the Chicago Trust Money Market
Fund all outperformed their peer groups. The Chicago Trust Talon Fund and the
Chicago Trust Municipal Bond Fund were both conservatively positioned in 1995.
Nonetheless, the Talon Fund returned 18.9% and the Municipal Bond Fund had an
after tax return of 9.3% for the fiscal year.
On September 21, 1995, we added the Chicago Trust Asset Allocation Fund to our
Fund Family. This Fund's total return since inception through October 31, 1995
was 1.08% compared to the combined benchmark of the S&P 500 and the Lehman
Aggregate Bond Index of 0.62%.
It is easy to get complacent and cocky after a year like 1995. However, we
will remain vigilant and watchful. The economy is much too complex and its
relationships with securities markets far too rich for us to know which
markets will do well and which will do poorly over the next 12 months. For
those investors with a long-term horizon we have an outstanding mix of funds
which should serve you well in the years ahead.
Thank you for your investment in the CT&T Family of Funds.
Sincerely,
LOGO
Stuart D. Bilton
Chairman
<PAGE>
CT&T FUNDS -- MANAGEMENT DISCUSSION AND ANALYSIS October 31, 1995
- - -------------------------------------------------------------------------------
MONTAG & CALDWELL GROWTH FUND
The Montag & Caldwell Growth Fund saw its performance soar with the rise in
the technology sector. The Fund had a total return, for the period (inception
date 11/2/94) ending October 31, 1995, of 31.9% while the S&P 500 Index was
24.7% for the same period. In addition the Lipper Growth Fund Index returned
only 24.0% for the same period.
During the fiscal period ended October 31, 1995, the Fund maintained on
average, one third of its assets in technology securities. This has
significantly contributed to the strong performance. In addition, the Fund has
invested in those growth companies that are positioned to benefit from the
expansion of global markets. Many of these companies are multinational
consumer product, healthcare, and well positioned technology companies.
An economic environment of steady to lower bond yield and slower corporate
profit growth should be a favorable environment for investing in growth
companies. The present valuations of the future income streams of such
companies will show greater improvement as compared to the valuations of
slower growing companies. Also, because we expect moderate corporate profit
growth to persist for quite some time, the shares of quality growth companies
are likely to experience an expansion of their relative valuations as
investors seek out companies with superior earnings growth rates.
[PERFORMANCE GRAPH APPEARS HERE]
MONTAG & CALDWELL GROWTH PERFORMANCE GRAPH
M & C
DATE S&P 500 GROWTH FUND
-------- ---------- -----------
11/02/94 $10,000.00 $10,000.00
11/30/94 $ 9,636.00 $ 9,760.00
12/31/94 $ 9,779.00 $ 9,775.00
01/31/95 $ 9,968.00 $10,005.00
02/28/95 $10,423.00 $10,265.00
03/31/95 $10,731.00 $10,629.00
04/30/95 $11,047.00 $10,999.00
05/31/95 $11,488.00 $11,419.00
06/30/95 $11,755.00 $12,099.00
07/31/95 $12,145.00 $12,630.00
08/31/95 $12,175.00 $12,389.00
09/30/95 $12,689.00 $12,736.00
10/31/95 $12,644.00 $13,186.91
MONTAG & CALDWELL GROWTH FUND TEN LARGEST HOLDINGS
1. Intel Corp.
2. Coca-Cola Co.
3. Microsoft Corp.
4. Cisco Systems, Inc.
5. Compaq Computer Corp.
6. Seagate Technology, Inc.
7. Procter & Gamble Co.
8. Gillette Co.
9. Home Depot, Inc.
10. Oracle Systems, Inc.
2
<PAGE>
CT&T FUNDS -- MANAGEMENT DISCUSSION AND ANALYSIS October 31, 1995
- - -------------------------------------------------------------------------------
CHICAGO TRUST GROWTH & INCOME FUND
The Chicago Trust Growth & Income Fund had outstanding performance during the
fiscal year ended October 31, 1995. The Fund's one year total return as of
October 31, 1995 was 28.7% compared to 26.4% for the S&P 500 Index and 20.0%
for the Lipper Growth & Income Fund Index. Your Fund ranked 8 out of 462
Growth & Income Funds listed by Morningstar, Inc. for its one year total
return.
The market continued to set new highs throughout much of 1995 with strong
corporate earnings, low interest rates, and good cash flow into mutual funds.
Technology led the way for most of the year, although in recent months it has
underperformed the market. Defensively oriented groups, such as consumer
staples and utilities, which had been consistent underperformers, recovered
significantly the last few months of the fiscal year.
While the returns of 1995 are not expected year in and year out, we continue
to emphasize the use of quality growth issues which offer the ability to
deliver above average and consistent growth during periods of slowing overall
profits and a rather sluggish economy.
Since inception of the Fund on December 13, 1993 through October 31, 1995, the
total return was 30.9% compared to 31.3% for the S&P 500 Index.
[PERFORMANCE GRAPH APPEARS HERE]
CHICAGO TRUST GROWTH & INCOME PERFORMANCE GRAPH
CT GROWTH &
DATE S&P 500 DATE INCOME FUND
-------- ---------- -------- -----------
12/31/93 $10,000.00 12/31/93 $10,000.00
01/31/94 $10,343.00 01/31/94 $10,394.00
02/28/94 $ 9,944.00 02/28/94 $10,063.00
03/31/94 $ 9,585.00 03/31/94 $ 9,707.00
04/29/94 $ 9,778.00 04/29/94 $ 9,797.00
05/31/94 $ 9,924.00 05/31/94 $ 9,998.00
06/30/94 $ 9,731.00 06/30/94 $ 9,674.00
07/31/94 $10,022.00 07/31/94 $ 9,946.00
08/31/94 $10,431.00 08/31/94 $10,327.00
09/30/94 $10,196.00 09/30/94 $ 9,971.00
10/31/94 $10,423.00 10/31/94 $10,173.00
11/30/94 $ 9,667.00 11/30/94 $ 9,911.00
12/31/94 $10,206.00 12/31/94 $10,194.00
01/31/95 $10,326.00 01/31/95 $10,366.00
02/28/95 $10,444.00 02/28/95 $10,759.00
03/31/95 $11,119.00 03/31/95 $10,928.00
04/30/95 $11,446.00 04/30/95 $11,231.00
05/31/95 $11,904.00 05/31/95 $11,554.00
06/30/95 $12,180.00 06/30/95 $11,942.00
07/31/95 $12,584.00 07/31/95 $12,327.00
08/31/95 $12,615.00 08/31/95 $12,418.00
09/30/95 $13,148.00 09/30/95 $13,068.00
10/31/95 $13,100.00 10/31/95 $13,087.79
CHICAGO TRUST GROWTH & INCOME FUND TEN LARGEST HOLDINGS
1. Pfizer, Inc.
2. Service Corp. International
3. Procter & Gamble Co.
4. Walgreen Co.
5. Raytheon Co.
6. American International Group, Inc.
7. Illinois Tool Works, Inc.
8. Royal Dutch Petroleum Co. -- NY Registered
9. General Electric Co.
10. Kimberly Clark Corp.
3
<PAGE>
CT&T FUNDS -- MANAGEMENT DISCUSSION AND ANALYSIS October 31, 1995
- - -------------------------------------------------------------------------------
CHICAGO TRUST TALON FUND
Particularly in a market driven by low interest rates and showing signs of
speculative excesses, we must fully understand the businesses and managements
represented in the Talon Fund portfolio. We continually ask ourselves if we
hold value at these levels in each stock. Valuations must represent a discount
to private market standards. We also require confidence in each company's
ability to meet earnings expectations. Our sensitivity to capital preservation
and value results in about a 23% cash position, further enhanced with S&P
Puts. Over the past fiscal year ending October 31, 1995, the Talon Fund
returned 18.9%. In comparison, the S&P MidCap 400 Index returned 21.2%.
Since inception of the Fund on September 19, 1994 through October 31, 1995,
the total return was 21.9% compared to 19.5% for the S&P Midcap 400 Index.
[PERFORMANCE GRAPH APPEARS HERE]
CHICAGO TRUST TALON PERFORMANCE GRAPH
MIDCAP 400
DATE INDEX TALON
-------- ---------- -----------
09/19/94 $10,000.00 $10,000.00
09/26/94 $ 9,752.00 $10,090.00
10/31/94 $ 9,736.00 $10,250.00
11/30/94 $ 9,278.00 $10,110.00
12/31/94 $ 9,347.00 $10,181.00
01/31/95 $ 9,432.00 $10,151.00
02/28/95 $ 9,905.00 $10,613.00
03/31/95 $10,077.00 $10,836.00
04/30/95 $10,280.00 $10,766.00
05/31/95 $10,528.00 $11,179.00
06/30/95 $10,956.00 $11,729.00
07/31/95 $11,527.00 $12,172.00
08/31/95 $11,740.00 $12,193.00
09/30/95 $12,024.00 $12,542.00
10/31/95 $11,715.00 $12,189.00
CHICAGO TRUST TALON FUND TEN LARGEST HOLDINGS
1. Brooklyn Bancorp, Inc.
2. Robotic Vision Systems, Inc.
3. Risk Capital Holdings, Inc.
4. Starbucks Corp.
5. Pyxis Corp.
6. MGM Grand, Inc.
7. North American Vaccine, Inc.
8. Gymboree Corp.
9. Elan Corp.
10. TIG Holdings, Inc.
4
<PAGE>
CT&T FUNDS -- MANAGEMENT DISCUSSION AND ANALYSIS October 31, 1995
- - -------------------------------------------------------------------------------
MONTAG & CALDWELL BALANCED FUND
The Montag & Caldwell Balanced Fund had a strong gain for the period
(inception date 11/2/94) ending October 31, 1995 of 23.8% while the combined
index of the S&P 500 and the Lehman Brother's Government/Corporate Bond Index
was 20.4%. In addition, the Lipper Balanced Fund Index was 17.4%.
During the year, the Fund maintained approximately 60% of the portfolio in
common stocks and 40% in bonds. The technology sector helped push up the
strong returns in the common stock portion of the portfolio. The Fund also
maintained positions in the multinational consumer product and healthcare
sectors. We will continue to favor growth companies that will benefit from the
expansion of global markets.
The bond market for this period has been very strong. The Federal Reserve has
successfully brought the economy to a "soft landing". The first Federal
Reserve easing in three years occurred during 1995. Economic data pointing to
moderate economic growth and low inflation suggests that bond yields should
move in a steady to somewhat lower range in the period ahead. With this
outlook in mind, we continue to emphasize the treasury bond sector with
maturities of 7-10 years.
[PERFORMANCE GRAPH APPEARS HERE]
MONTAG & CALDWELL BALANCED PERFORMANCE GRAPH
LEHMAN/ M & C
DATE S&P 500 BALANCED FUND
-------- ---------- -------------
11/02/94 $10,000.00 $10,000.00
11/30/94 $ 9,793.00 $ 9,870.00
12/31/94 $ 9,937.00 $ 9,878.00
01/31/95 $10,160.00 $10,079.00
02/28/95 $10,470.00 $10,330.00
03/31/95 $10,699.00 $10,553.00
04/30/95 $10,932.00 $10,817.00
05/31/95 $11,371.00 $11,261.00
06/30/95 $11,602.00 $11,691.00
07/31/95 $11,775.00 $11,944.00
08/31/95 $11,861.00 $11,823.00
09/30/95 $12,227.00 $12,068.00
10/31/95 $12,298.00 $12,374.60
MONTAG & CALDWELL BALANCED FUND TEN LARGEST HOLDINGS
1. U.S. Treasury Note 6.25%, 2/15/03
2. J.C. Penney & Co. Debentures 9.75%, 6/15/21
3. Intel Corp.
4. Cisco Systems, Inc.
5. Coca-Cola Co.
6. U.S. Treasury Note 7.25%, 5/15/04
7. U.S. Treasury Strip Zero Coupon, 2/15/06
8. U.S. Treasury Note 7.88%, 11/15/04
9. U.S. Treasury Note 6.38%, 8/15/02
10. Microsoft Corp.
5
<PAGE>
CT&T FUNDS -- MANAGEMENT DISCUSSION AND ANALYSIS October 31, 1995
- - -------------------------------------------------------------------------------
CHICAGO TRUST BOND FUND
Declining interest rates over the last year have allowed fixed income
investors to enjoy very handsome returns. The Chicago Trust Bond Fund had
strong results for the fiscal year ended October 31, 1995. The Fund's one year
total return was 14.9%. This compares favorably with total returns for the
fund's benchmarks. The Lipper Intermediate Investment Grade Bond Index earned
13.8% while the Lehman Aggregate Bond Index return was 15.7%. In fact, the
return for the Lehman Aggregate Bond Index was the 5th highest since its
inception in 1976.
Strong performance during a bond market rally is directly attributable to the
Fund's maturity structure as measured by effective duration. During most of
the fiscal year the Fund maintained an effective portfolio duration of 4.6
years. The Lehman Aggregate Bond Index also had the same duration. As a result
the Fund was favorably positioned to participate in the bond market rally.
The composition of the Fund's asset mix will contribute to attractive long
term investment results. During the last year the Fund continued to overweight
Corporate Bonds based on favorable longer term returns. Currently, 43% of the
portfolio is invested in Corporate Bonds. We focus on fundamental credit
research and portfolio diversification. The Corporate Bond holdings are
diversified among 34 issues. The largest exposure in an individual issue is
3%. In summary, the higher the quality the higher the weighting. Conversely,
the lower the quality the lower the weighting. All high yield investments
average 1% of assets.
Throughout most of the year the Fund was underweighted in U.S. Agency Mortgage
securities. In a declining interest rate environment, mortgage security
returns will lag behind other fixed income investments. We have emphasized
discount Agency CMO's and 15 year Agency Pass Throughs with stable cash flow
characteristics in order to minimize interest rate risk.
As of this writing the 30 year Treasury Bond is hovering at 6%. It appears the
bond market expects the economy to flirt with a recession. At the same time,
the market has already priced in the assumption that the Federal Reserve will
cut short term rates once before the end of the year and again in early 1996.
Bond market returns in 1996 will be significantly impacted by the market's
interpretation of the Fed's monetary policy.
Since inception of the Fund on December 13, 1993 through October 31, 1995, the
total return was 11.2% compared to 11.9% for the Lehman Aggregate Bond Index.
6
<PAGE>
CT&T FUNDS -- MANAGEMENT DISCUSSION AND ANALYSIS October 31, 1995
- - --------------------------------------------------------------------------------
CHICAGO TRUST BOND FUND--CONTINUED
[PERFORMANCE GRAPH APPEARS HERE]
CHICAGO TRUST BOND FUND PERFORMANCE GRAPH
LEHMAN BOND
DATE INDEX BOND FUND
-------- ---------- -----------
12/31/93 $10,000.00 $10,000.00
01/31/94 $10,186.00 $10,147.00
02/28/94 $10,052.00 $ 9,998.00
03/31/94 $ 9,853.00 $ 9,794.00
04/29/94 $ 9,837.00 $ 9,682.00
05/31/94 $ 9,886.00 $ 9,649.00
06/30/94 $ 9,914.00 $ 9,636.00
07/31/94 $10,175.00 $ 9,768.00
08/31/94 $10,231.00 $ 9,792.00
09/30/94 $10,121.00 $ 9,692.00
10/31/94 $10,159.00 $ 9,677.00
11/30/94 $10,184.00 $ 9,660.00
12/31/94 $10,346.00 $ 9,736.00
01/31/95 $10,556.00 $ 9,894.00
02/28/95 $10,838.00 $10,094.00
03/31/95 $10,948.00 $10,189.00
04/29/95 $11,148.00 $10,307.00
05/31/95 $11,589.00 $10,679.00
06/30/95 $11,722.00 $10,754.00
07/31/95 $11,739.00 $10,735.00
08/31/95 $11,911.00 $10,863.00
09/30/95 $12,070.00 $10,981.00
10/31/95 $12,251.00 $11,117.20
CHICAGO TRUST BOND FUND TEN LARGEST HOLDINGS
1. Government National Mortgage Association 7.00%, 10/15/23
2. Federal National Mortgage Association 5.24%, 7/15/98
3. Federal Home Loan Mortgage Corp. CMO REMIC 6.50%, 6/01/09
4. Federal National Mortgage Association CMO REMIC 6.25%, 7/25/02
5. Federal National Mortgage Association CMO REMIC 6.00%, 6/25/02
6. Government National Mortgage Association 7.50%, 4/15/23
7. John Deere Capital Corp. Debentures 8.63%, 8/01/19
8. AMR Corp. Debentures 10.00%, 4/15/21
9. Government National Mortgage Association 8.00%, 6/15/17
10. Long Island Lighting Co. Debentures 9.00%, 11/01/22
7
<PAGE>
CT&T FUNDS -- MANAGEMENT DISCUSSION AND ANALYSIS October 31, 1995
- - -------------------------------------------------------------------------------
CHICAGO TRUST MUNICIPAL BOND FUND
Most bond market participants thought that 1994 was an interesting year, but
1995 threw us some curves of its own. While we weathered a bear market in
1994, we experienced a bull market, albeit a muted one for municipals, during
1995. Interest rates are lower across fixed income markets, with muni rates
down from 0.50% to 1.00% depending on maturity. At October 31, 1995, AA
General Obligation yields were 4.3% in 5 years, 4.9% in ten years, and 5.7% in
30 years. The Fund's one year total return was 9.3% compared to 10.3% for the
Lehman 5 Year General Obligation Index.
While municipal bonds participated in the 1995 rally, tax-exempts
underperformed the taxable market for the period. In other words, tax-exempt
yields fell but not as much as taxable yields, making municipals "cheap" by
comparison. The ratio of 15-30 year municipal to Treasury yields has been in
the historically high range of 80-90% for most of the year, creating
opportunities for investors with higher risk tolerance.
Last December's bankruptcy filing by Orange County, CA set the stage for
credit concerns that are still affecting municipal issuers today. Also, the
possibility of federal tax reform continues to haunt the market. The greatest
threat to municipal bonds is reform that would exempt all investment income
from federal taxation. It has been suggested that fundamental tax law change
might decrease the overall level of interest rates, reducing the impact on
municipal bond values. The actual face of tax reform and its impact on the
economy and markets remain to be seen.
In the Chicago Trust Municipal Bond Fund we took advantage of market
opportunities to sell shorter and lower coupon securities in order to extend
the fund's average maturity and increase yield. We were also able to purchase
bonds in what are usually considered "specialty" states (such as New York and
Oregon) at general market levels due to increased supply from these issuers.
The fund's average maturity is on the long end of our parameters at about 6
years and is positioned to take advantage of what we believe will be stable to
strong market conditions.
Since inception of the Fund on December 13, 1993 through October 31, 1995, the
total return was 7.2%, compared to 9.0% for the Lehman 5 Year General
Obligation Index.
8
<PAGE>
CT&T FUNDS -- MANAGEMENT DISCUSSION AND ANALYSIS October 31, 1995
- - --------------------------------------------------------------------------------
CHICAGO TRUST MUNICIPAL BOND FUND -- CONTINUED
[PERFORMANCE GRAPH APPEARS HERE]
CHICAGO TRUST MUNICIPAL BOND PERFORMANCE GRAPH
LEHMAN 5 YR MUNI BOND
DATE INDEX FUND
-------- ---------- -----------
12/31/93 $10,000.00 $10,000.00
01/31/94 $10,157.00 $10,106.00
02/28/94 $ 9,994.00 $ 9,934.00
03/31/94 $ 9,787.00 $ 9,725.00
04/29/94 $ 9,914.00 $ 9,803.00
05/31/94 $ 9,994.00 $ 9,848.00
06/30/94 $ 9,996.00 $ 9,821.00
07/31/94 $10,132.00 $ 9,922.00
08/31/94 $10,204.00 $ 9,946.00
09/30/94 $10,160.00 $ 9,875.00
10/31/94 $10,129.00 $ 9,808.00
11/30/94 $10,091.00 $ 9,730.00
12/31/94 $10,226.00 $ 9,790.00
01/31/95 $10,333.00 $ 9,958.00
02/28/95 $10,505.00 $10,089.00
03/31/95 $10,693.00 $10,201.00
04/29/95 $10,757.00 $10,218.00
05/31/95 $11,006.00 $10,421.00
06/30/95 $11,048.00 $10,415.00
07/31/95 $11,222.00 $10,518.00
08/31/95 $11,356.00 $10,610.00
09/30/95 $11,421.00 $10,647.00
10/31/95 $11,493.00 $10,719.03
CHICAGO TRUST MUNICIPAL BOND FUND TEN LARGEST HOLDINGS
1. King County, Washington, Series A, G.O. 5.80%, 1/01/04
2. Jordan School District, Series A, G.O. 5.25%, 6/15/00
3. Florida State Dade County Road 4.70%, 7/01/97
4. State of Illinois, G.O. 5.40%, 6/01/96
5. Cook County, Illinois Series B, G.O., MBIA Insured 4.70%, 11/15/01
6. Virginia Public School Authority Revenue 5.50%, 8/01/03
7. Shelby County, Series A, G.O. 4.50%, 3/01/96
8. State of Nevada, Water Pollution Control, Revolving Funding, G.O.
4.10%, 11/01/98
9. Salt River Project Electric System Revenue, Refunding Series A, 5.50%,
01/01/05
10. Texas Water Development Board, G.O., Escrowed to Maturity 5.00%,
8/01/99
9
<PAGE>
CT&T FUNDS -- MANAGEMENT DISCUSSION AND ANALYSIS October 31, 1995
- - -------------------------------------------------------------------------------
CHICAGO TRUST MONEY MARKET FUND
The Chicago Trust Money Market Fund continues to provide excellent performance
relative to its benchmark, the Donoghue's First Tier Index. As of October 31,
1995, the Fund's 30 day yield was 5.4% vs. an index yield of 5.2%. Measured
over a 7-day period, the yield advantage was greater yet. The Fund returned
5.6% while the Index returned 5.2%. This advantage is possible when a
relatively short fund extends its maturity range to purchase securities on the
highest yielding part of the short-term yield curve. This investment strategy
has worked very well for us to this point.
The investment objectives of the Money Market Fund remain the same-safety,
liquidity, and yield. Derivative securities do not fit in with these
objectives, so they are not used. Instead, tried and true investment
management techniques such as diversification, asset allocation, and credit
analysis are used. We believe a money market shareowner is best served by
applying these techniques.
10
<PAGE>
CT&T FUNDS -- SCHEDULE OF INVESTMENTS October 31, 1995
- - --------------------------------------------------------------------------------
MONTAG & CALDWELL GROWTH FUND
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ----------
<S> <C> <C>
COMMON STOCK -- 89.33%
COMMUNICATIONS -- 2.60%
Motorola, Inc. ............................................... 16,000 $1,050,000
----------
COMPUTER HARDWARE -- 17.79%
Adaptec, Inc.* ............................................... 26,500 1,179,250
Compaq Computer Corp.* ....................................... 26,000 1,449,500
Intel Corp. .................................................. 25,400 1,774,825
Intelligent Electronics, Inc. ................................ 31,000 236,375
Seagate Technology, Inc.* .................................... 31,000 1,387,250
Solectron Corp.* ............................................. 28,600 1,151,150
----------
7,178,350
----------
COMPUTER SOFTWARE -- 10.69%
Cisco Systems, Inc.* ......................................... 19,600 1,519,000
Microsoft Corp.* ............................................. 15,500 1,550,000
Oracle System Corp.* ......................................... 28,500 1,243,313
----------
4,312,313
----------
CONSUMER DURABLES -- 1.78%
Harley Davidson, Inc. ........................................ 26,900 719,575
----------
CONSUMER NON-DURABLES -- 10.31%
Gillette Co. ................................................. 26,500 1,281,937
International Flavors &
Fragrances, Inc. ............................................ 14,000 675,500
Mattel, Inc. ................................................. 31,800 914,250
Procter & Gamble Co. ......................................... 15,900 1,287,900
----------
4,159,587
----------
ELECTRICAL EQUIPMENT -- 3.02%
Duracell International, Inc. ................................. 23,300 1,220,337
----------
ENTERTAINMENT & LEISURE -- 2.43%
Walt Disney Co. .............................................. 17,000 979,625
----------
FINANCIAL SERVICES -- 8.94%
Federal National Mortgage Association ........................ 10,600 1,111,675
General Motors Corp. CL E .................................... 24,000 1,131,000
Interpublic Group Cos., Inc. ................................. 17,000 658,750
MBNA Corp. ................................................... 19,100 704,313
----------
3,605,738
----------
FOOD & BEVERAGE -- 11.10%
Coca-Cola Co. ................................................ 21,700 1,559,688
CPC International, Inc. ...................................... 10,600 703,575
Kellogg Co. .................................................. 10,600 765,850
Pioneer Hi-Bred International, Inc. .......................... 14,300 709,637
Wrigley, Wm. Jr., Co. ........................................ 15,900 739,350
----------
4,478,100
----------
HEALTH CARE -- 5.59%
Abbott Laboratories .......................................... 26,500 1,053,375
Johnson & Johnson ............................................ 14,800 1,206,200
----------
2,259,575
----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
---------- -----------
<S> <C> <C>
LODGING -- 1.73%
Marriott International, Inc. ......................... 18,900 $ 696,937
-----------
PHARMACEUTICALS-- 7.22%
Eli Lilly & Co. ...................................... 7,800 753,675
Merck & Co. .......................................... 18,000 1,035,000
Pfizer, Inc. ......................................... 19,600 1,124,550
-----------
2,913,225
-----------
RETAIL -- 6.13%
Home Depot, Inc. ..................................... 34,000 1,266,500
The Gap, Inc. ........................................ 30,700 1,208,813
-----------
2,475,313
-----------
TOTAL COMMON STOCK
(Cost $30,160,572) .................................. 36,048,675
-----------
MONEY MARKET FUND-- 2.19%
(Cost $884,199)
Fidelity U.S. Government Reserves .................... 884,199 844,199
-----------
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
REPURCHASE
AGREEMENT -- 7.64%
(Cost $3,084,000)
United Missouri Bank, U.S. Treasury Note, $3,119,000
par, 7.5% coupon, due 02/29/96, dated 10/31/95, to be
sold on 11/01/95 at $3,084,454 ...................... $3,084,000 3,084,000
-----------
TOTAL INVESTMENTS -- 99.16%
(Cost $34,128,771)/1/................................ 40,016,874
-----------
OTHER ASSETS NET OF LIABILITIES -- 0.84% ............. 338,175
-----------
NET ASSETS -- 100.00%................................. $40,355,049
===========
/1/Aggregate cost for federal income tax purposes is
$34,128,771; and net unrealized appreciation is as
follows:
Gross unrealized appreciation $6,215,993
Gross unrealized depreciation (327,890)
----------
Net unrealized appreciation $5,888,103
==========
</TABLE>
* Non-income producing security.
See accompanying notes to financial statements.
11
<PAGE>
CT&T FUNDS -- SCHEDULE OF INVESTMENTS October 31, 1995
- - --------------------------------------------------------------------------------
CHICAGO TRUST GROWTH & INCOME FUND
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------- ----------
<S> <C> <C>
COMMON STOCK -- 91.23%
CHEMICALS -- 1.45%
Praxair, Inc................................................ 92,400 $2,494,800
----------
COMMUNICATIONS -- 2.45%
Motorola, Inc............................................... 64,400 4,226,250
----------
COMPUTERS/OFFICE EQUIPMENT -- 11.00%
Cisco Systems, Inc.*........................................ 30,200 2,340,500
Computer Sciences Corp.*.................................... 91,700 6,132,438
Hewlett-Packard Co.......................................... 52,900 4,899,862
Microsoft Corp.*............................................ 55,700 5,570,000
----------
18,942,800
----------
CONSUMER DURABLES -- 0.23%
Harley Davidson, Inc........................................ 14,600 390,550
----------
CONSUMER NON-DURABLES -- 11.04%
Gillette Co................................................. 84,400 4,082,850
Mattel, Inc................................................. 75,000 2,156,250
Newell Co................................................... 234,100 5,647,662
Procter & Gamble Co......................................... 88,100 7,136,100
----------
19,022,862
----------
ELECTRICAL/ELECTRONICS -- 3.77%
General Electric Co......................................... 102,700 6,495,775
----------
ENERGY -- 6.72%
Exxon Corp.................................................. 66,400 5,071,300
Royal Dutch Petroleum Co. --
NY Registered.............................................. 52,900 6,500,088
----------
11,571,388
----------
FINANCIAL SERVICES -- 9.82%
Federal Home Loan Mortgage Corp............................. 74,850 5,183,363
Green Tree Financial Corp................................... 196,000 5,218,500
MBNA Corp................................................... 46,900 1,729,437
Norwest Corp................................................ 162,600 4,796,700
----------
16,928,000
----------
FOOD & BEVERAGE -- 0.97%
Coca-Cola Co................................................ 23,200 1,667,500
----------
INSURANCE -- 6.08%
American International Group, Inc........................... 79,650 6,720,469
General Re Corp............................................. 25,950 3,759,506
----------
10,479,975
----------
MISCELLANEOUS MANUFACTURING -- 4.81%
Illinois Tool Works, Inc.................................... 114,000 6,626,250
Watts Industries, Inc....................................... 80,200 1,654,125
----------
8,280,375
----------
MISCELLANEOUS/SERVICE -- 4.24%
Service Corp. International................................. 182,250 7,312,781
----------
PAPER/WOOD PRODUCTS -- 3.62%
Kimberly Clark Corp......................................... 86,000 6,245,750
----------
</TABLE>
<TABLE>
<CAPTION>
SHARES MARKET VALUE
----------- ------------
<S> <C> <C>
PHARMACEUTICALS -- 13.45%
Abbott Laboratories................................. 156,000 $ 6,201,000
Forest Labs, Inc.* ................................. 95,000 3,930,625
Pfizer, Inc......................................... 130,200 7,470,225
Schering-Plough Corp................................ 104,000 5,577,000
------------
23,178,850
------------
RESTAURANT/LODGING -- 1.10%
Outback Steakhouse, Inc.*........................... 60,400 1,895,050
------------
RETAIL -- 4.02%
Walgreen Co......................................... 243,200 6,931,200
------------
SCIENTIFIC & TECH INSTRUMENTS -- 3.98%
Raytheon Co......................................... 157,000 6,849,125
------------
TELECOMMUNICATION SERVICES -- 1.49%
AT&T Corp........................................... 40,200 2,572,800
------------
WHOLESALE TRADE -- 0.99%
Grainger (W.W.), Inc................................ 27,150 1,696,875
------------
TOTAL COMMON STOCK
Cost ($152,873,951)................................ 157,182,706
------------
<CAPTION>
PRINCIPAL
AMOUNT
-----------
<S> <C> <C>
REPURCHASE
AGREEMENT -- 8.96%
(Cost $15,440,000)
First Chicago, U.S. Treasury Note, $14,970,000 par,
7.875% coupon, due 04/15/98, dated 10/31/95, to be
sold on 11/01/95 at $15,442,520 ................... $15,440,000 15,440,000
------------
TOTAL INVESTMENTS -- 100.19%
(Cost $168,313,951)/1/............................. 172,622,706
------------
LIABILITIES NET OF CASH AND OTHER ASSETS -- (0.19%
).................................................. (327,001)
------------
NET ASSETS -- 100.00%............................... $172,295,705
============
/1/Aggregate cost for federal income tax purposes is
$168,313,951; and net unrealized appreciation is as
follows:
Gross unrealized appreciation $ 7,573,043
Gross unrealized depreciation (3,264,288)
-----------
Net unrealized appreciation $ 4,308,755
===========
</TABLE>
* Non-income producing security.
See accompanying notes to financial statements.
12
<PAGE>
CT&T FUNDS -- SCHEDULE OF INVESTMENTS October 31, 1995
- - --------------------------------------------------------------------------------
CHICAGO TRUST TALON FUND
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ----------
<S> <C> <C>
COMMON STOCK -- 75.47%
APPAREL -- 3.86%
Gymboree Corp.*............................................ 18,000 $ 407,250
----------
BIOTECHNOLOGY -- 3.98%
North American Vaccine, Inc.*.............................. 40,000 420,000
----------
CABLE TELEVISION -- 5.47%
Comcast, CL A.............................................. 17,000 303,875
Tele-Communications, CL A.................................. 16,000 272,000
----------
575,875
----------
COMMUNICATION EQUIPMENT/MANUFACTURERS -- 2.81%
DSC Communications Corp*................................... 8,000 296,000
----------
COMPUTER SOFTWARE & SERVICES -- 1.76%
Amdahl Corp................................................ 20,000 185,000
----------
FINANCIAL SERVICES -- 11.08%
Brooklyn Bancorp, Inc...................................... 16,000 630,000
Imperial Thrift & Loan Association......................... 26,000 299,000
Northern Trust Corp........................................ 5,000 238,750
----------
1,167,750
----------
HOMEBUILDING -- 1.54%
Falcon Building Products, Inc.*............................ 18,000 162,000
----------
HOTEL/GAMING -- 5.26%
Griffin Gaming & Entertainment*............................ 10,000 125,000
MGM Grand, Inc.*........................................... 18,000 429,750
----------
554,750
----------
INSURANCE -- 13.56%
Danielson Holdings Corp.*.................................. 46,000 327,750
Risk Capital Holdings, Inc.*............................... 24,000 528,000
Safeco Corp................................................ 3,000 192,563
TIG Holdings, Inc.......................................... 15,000 380,625
----------
1,428,938
----------
MEDICAL PRODUCTS & SUPPLIES -- 4.31%
Pyxis Corp.*............................................... 36,000 454,500
----------
MERCHANDISING -- 0.28%
American Coin Merchandising................................ 4,000 29,500
----------
OIL FIELD SERVICES/EQUIPMENT -- 2.18%
Cliffs Drilling Co......................................... 17,000 229,500
----------
PHARMACEUTICALS -- 7.16%
Elan Corp.*................................................ 10,000 401,250
Teva Pharmaceuticals ...................................... 9,000 353,250
----------
754,500
----------
RETAILING-SPECIALTY -- 4.47%
Starbucks Corp.*........................................... 12,000 471,000
----------
SCIENTIFIC & TECH INSTRUMENTS -- 5.43%
Robotic Vision Systems, Inc.*.............................. 25,000 571,875
----------
TELECOMMUNICATIONS-LONG DISTANCE -- 2.32%
WorldCom, Inc.*............................................ 7,500 244,687
----------
TOTAL COMMON STOCK
(Cost $7,089,151)......................................... 7,953,125
----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
---------- -----------
<S> <C> <C>
PREFERRED STOCK -- 0.96%
(Cost $93,500)
Cliffs Drilling Co*.................................. 3,500 $ 101,063
-----------
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
REPURCHASE
AGREEMENT -- 22.25%
(Cost $2,344,000)
United Missouri Bank,
U.S. Treasury Note, $2,371,000 par, 7.5% coupon, due
02/29/96, dated 10/31/95, to be sold on 11/01/95 at
$2,344,345 ......................................... $2,344,000 2,344,000
-----------
U.S. GOVERNMENT
OBLIGATIONS -- 14.06%
U.S. TREASURY BILLS -- 14.06%
5.180%, 01/11/96..................................... 750,000 742,219
5.220%, 02/08/96..................................... 750,000 739,110
-----------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $1,481,330)................................... 1,481,329
-----------
<CAPTION>
CONTRACTS
----------
<S> <C> <C>
OPTIONS -- 0.16%
(Cost $28,650)
SPX Dec 575 Puts..................................... 30 17,250
-----------
TOTAL INVESTMENTS -- 112.90%
(Cost $11,036,631)/1/............................... 11,896,767
-----------
LIABILITIES NET OF CASH AND OTHER ASSETS -- (12.90%). (1,358,913)
-----------
NET ASSETS -- 100.00%................................ $10,537,854
===========
/1/Aggregate cost for federal income tax purposes is
$11,043,127; and net unrealized appreciation is as
follows:
Gross unrealized appreciation $1,099,347
Gross unrealized depreciation (245,707)
----------
Net unrealized appreciation $ 853,640
==========
</TABLE>
* Non-income producing security.
See accompanying notes to financial statements.
13
<PAGE>
CT&T FUNDS -- SCHEDULE OF INVESTMENTS October 31, 1995
- - --------------------------------------------------------------------------------
CHICAGO TRUST ASSET ALLOCATION FUND
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
-------- ----------
<S> <C> <C>
COMMON STOCK -- 56.50%
CHEMICALS -- 0.71%
Praxair, Inc. .............................................. 40,000 $1,080,000
----------
COMMUNICATIONS -- 1.50%
Motorola, Inc. ............................................. 35,000 2,296,875
----------
COMPUTERS/OFFICE EQUIPMENT -- 8.11%
American Power Conversion Corp.* 45,000 461,250
Cisco Systems, Inc.* ....................................... 20,000 1,550,000
Computer Sciences Corp.* ................................... 45,000 3,009,375
Hewlett-Packard Co. ........................................ 43,000 3,982,875
Microsoft Corp.* ........................................... 34,000 3,400,000
----------
12,403,500
----------
CONSUMER DURABLES -- 0.96%
Harley Davidson, Inc. ...................................... 55,000 1,471,250
----------
CONSUMER NON-DURABLES -- 5.33%
Gillette Co. ............................................... 60,000 2,902,500
Newell Co. ................................................. 100,000 2,412,500
Procter & Gamble Co. ....................................... 35,000 2,835,000
----------
8,150,000
----------
ELECTRICAL/ELECTRONICS -- 1.99%
General Electric Co. ....................................... 48,000 3,036,000
----------
ENERGY -- 5.39%
Amoco Corp. ................................................ 35,000 2,235,625
Exxon Corp. ................................................ 30,000 2,291,250
Royal Dutch Petroleum Co. .................................. 15,000 1,843,125
Schlumberger, Ltd. ......................................... 30,000 1,867,500
----------
8,237,500
----------
ENTERTAINMENT & LEISURE -- 1.89%
Walt Disney Co. ............................................ 50,000 2,881,250
----------
FINANCIAL SERVICES -- 6.31%
Federal Home Loan Mortgage
Corp. ..................................................... 38,000 2,631,500
First Data Corp. ........................................... 15,000 991,875
Green Tree Financial Corp. ................................. 100,000 2,662,500
MBNA Corp. ................................................. 35,000 1,290,625
Norwest Corp. .............................................. 70,000 2,065,000
----------
9,641,500
----------
FOOD & BEVERAGES -- 2.06%
Coca-Cola Co. .............................................. 30,000 2,156,250
Lancaster Colony Corp. ..................................... 30,000 997,500
----------
3,153,750
----------
INSURANCE -- 3.53%
American International Group, Inc. ......................... 38,250 3,227,344
General Re Corp. ........................................... 15,000 2,173,125
----------
5,400,469
----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
---------- ----------
<S> <C> <C>
MEDICAL SUPPLIES -- 2.27%
Medtronic, Inc. ....................................... 60,000 $3,465,000
----------
METALS/METAL PRODUCTS -- 0.81%
Watts Industries, Inc. ................................ 60,000 1,237,500
----------
MISCELLANEOUS MANUFACTURING -- 5.15%
Boeing Co. ............................................ 35,000 2,296,875
Deere & Co. ........................................... 33,000 2,949,375
Illinois Tool Works, Inc. ............................. 45,000 2,615,625
----------
7,861,875
----------
PHARMACEUTICALS -- 5.16%
Abbott Laboratories ................................... 70,000 2,782,500
Forest Labs, Inc. CL A* ............................... 40,000 1,655,000
Pfizer, Inc. .......................................... 60,000 3,442,500
----------
7,880,000
----------
RETAIL -- 1.86%
Walgreen Co. .......................................... 100,000 2,850,000
----------
SCIENTIFIC & TECH INSTRUMENTS -- 2.00%
Raytheon Co. .......................................... 70,000 3,053,750
----------
TELECOMMUNICATION SERVICES -- 1.47%
AT&T Corp. ............................................ 35,000 2,240,000
----------
TOTAL COMMON STOCK
(Cost $86,239,250) ................................... 86,340,219
----------
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
REPURCHASE
AGREEMENTS -- 8.67%
United Missouri Bank,
U.S. Treasury Bills,
$5,170,000 par, 5.875%
coupon, due 09/19/96, dated 10/31/95, to be sold on
11/01/95 at $4,827,788 ............................... $4,827,000 4,827,000
United Missouri Bank,
U.S. Treasury Notes,
$8,165,000 par, 7.875%
coupon, due 04/15/98, dated 10/31/95, to be sold on
11/01/95 at $8,420,374 ............................... 8,419,000 8,419,000
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $13,246,000) ................................... 13,246,000
----------
FIXED INCOME
SECURITIES -- 34.70%
U.S. GOVERNMENT OBLIGATIONS -- 7.04%
U.S. TREASURY NOTES -- 5.36%
4.250%, 11/30/95 ...................................... 1,000,000 999,039
6.125%, 07/31/96 ...................................... 1,000,000 1,003,910
4.375%, 11/15/96 ...................................... 1,000,000 988,070
5.625%, 08/31/97 ...................................... 1,000,000 1,000,170
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
CT&T FUNDS -- SCHEDULE OF INVESTMENTS October 31, 1995
- - --------------------------------------------------------------------------------
CHICAGO TRUST ASSET ALLOCATION FUND -- CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------- ----------
<S> <C> <C>
FIXED INCOME SECURITIES -- CONTINUED
8.750%, 10/15/97 .................................. $1,000,000 $1,057,340
9.000%, 05/15/98 .................................. 1,000,000 1,077,920
8.000%, 08/15/99 .................................. 1,000,000 1,075,140
5.875%, 02/15/04 .................................. 1,000,000 993,100
----------
8,194,689
----------
U.S. TREASURY BONDS -- 1.68%
9.250%, 02/15/16 .................................. 1,000,000 1,321,090
8.500%, 02/15/20 .................................. 1,000,000 1,251,100
----------
2,572,190
----------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $10,702,831) ................................ 10,766,879
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 12.17%
FEDERAL HOME LOAN BANK -- 0.35%
9.200%, 08/25/97 .................................. 500,000 529,545
----------
FEDERAL HOME LOAN MORTGAGE CORP. -- 3.24%
6.500%, 09/15/07, CMO REMIC........................ 1,000,000 1,003,035
7.500%, 04/01/08 .................................. 739,488 754,580
6.500%, 06/01/09 .................................. 1,331,363 1,323,728
7.000%, 11/15/13, CMO PAC --Interest Only ......... 2,200,000 228,052
7.000%, 07/01/23 .................................. 776,323 772,060
6.000%, 12/15/23, CMO REMIC........................ 1,000,000 877,914
----------
4,959,369
----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 1.99%
6.000%, 06/25/02, CMO REMIC 1,800,000 1,790,921
6.250%, 07/25/02, CMO REMIC 1,000,000 998,403
7.000%, 07/25/17, CMO PAC--Interest Only .......... 2,151,446 257,657
----------
3,046,981
----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 6.59%
7.000%, 05/15/08 .................................. 1,004,989 1,019,082
7.000%, 06/15/08 .................................. 705,318 715,171
7.000%, 09/15/08 .................................. 649,324 658,429
8.000%, 03/15/17 .................................. 925,949 952,748
8.000%, 06/15/17 .................................. 1,272,667 1,309,768
7.500%, 04/15/23 .................................. 2,598,000 2,635,753
7.000%, 10/15/23 .................................. 2,787,615 2,772,806
----------
10,063,757
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $18,549,603)................................ 18,599,652
----------
GOVERNMENT TRUST CERTIFICATES -- 1.08%
GTC Greece, 8.000%, 05/15/98 -- Series G-2 ........ 551,696 558,592
GTC Israel, 9.250%, 11/15/01 -- Class I-C ......... 1,000,000 1,095,000
----------
TOTAL GOVERNMENT TRUST CERTIFICATES (Cost
$1,653,032)....................................... 1,653,592
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------- ----------
<S> <C> <C>
ASSET BACKED NOTES -- 0.10% (Cost $149,107)
Premier Auto Trust,
5.900%, 11/17/97 ....................................... $ 149,190 $ 149,100
----------
CORPORATE BONDS, NOTES AND DEBENTURES -- 14.31%
AIRLINES -- 1.10%
AMR Corp. Debentures,
10.000%, 04/15/21 ...................................... 1,000,000 1,186,250
Delta Airlines, Inc. Equipment Trust Bonds,
8.540%, 01/02/07........................................ 469,468 502,342
----------
1,688,592
----------
COMPUTERS -- 1.15%
Comdisco, Inc. Notes,
7.250%, 04/15/98 ....................................... 500,000 511,250
International Business Machines Corp. Notes,
6.375%, 06/15/00........................................ 750,000 755,625
Unisys Corp. Notes,
9.750%, 09/15/96 ....................................... 500,000 495,000
----------
1,761,875
----------
CONSUMER NON-DURABLES -- 0.27%
Philip Morris Cos., Inc. Notes, 7.125%, 10/01/04......... 400,000 409,000
----------
EQUIPMENT -- 0.73%
John Deere Capital Corp. Debentures,
8.625%, 08/01/19........................................ 1,000,000 1,113,750
----------
FINANCIAL SERVICES -- 4.90%
Chrysler Financial Corp.,
6.625%, 08/15/00........................................ 1,000,000 1,011,250
General Motors Acceptance Corp. Notes,
7.750%, 01/15/99........................................ 500,000 521,875
General Motors Acceptance Corp. Notes,
8.500%, 01/01/03........................................ 1,000,000 1,102,500
Heller Financial Corp. Notes, 5.625%, 03/15/00........... 1,000,000 971,250
International Bank for Reconstruction & Development,
9.770%, 05/27/98........................................ 1,000,000 1,087,500
International Lease Finance Debentures,
7.900%, 10/01/96........................................ 1,000,000 1,018,020
Leucadia National Corp. Senior Subordinated Notes,
8.250%, 06/15/05........................................ 750,000 757,500
U.S. Leasing International, Inc. Notes,
7.000%, 11/01/97........................................ 1,000,000 1,020,000
----------
7,489,895
----------
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
CT&T FUNDS -- SCHEDULE OF INVESTMENTS October 31, 1995
- - --------------------------------------------------------------------------------
CHICAGO TRUST ASSET ALLOCATION FUND -- CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------- ----------
<S> <C> <C>
FIXED INCOME SECURITIES -- CONTINUED
HEALTHCARE -- 1.19%
Columbia/HCA Healthcare Corp. Notes,
7.690%, 06/15/25........................................ $1,000,000 $1,043,750
Hospital Corp. America, Zero Coupon Debentures,
06/01/00*............................................... 1,100,000 772,750
----------
1,816,500
----------
INSURANCE -- 1.21%
John Hancock Mutual Life Insurance Co. Notes,
7.375%, 02/15/24........................................ 900,000 866,250
Pacific Mutual Life Notes,
7.900%, 12/30/23 -- 144A................................ 1,000,000 983,750
----------
1,850,000
----------
RETAILING-SPECIALTY -- 0.77%
Federated Department Stores Senior Debentures,
8.125%, 10/15/02........................................ 500,000 506,250
Southland Corp. Senior Subordinated Debentures, 5.000%,
12/15/03................................................ 800,000 664,000
----------
1,170,250
----------
TRANSPORTATION -- 0.33%
Santa Fe Pacific Gold Corp. Senior Debentures,
8.375%, 07/01/05........................................ 500,000 505,625
----------
UTILITIES -- 2.66%
Commonwealth Edison Co. First Mortgage Bonds,
8.000%, 04/15/23........................................ 1,000,000 1,018,750
Long Island Lighting Co. Debentures,
9.000%, 11/01/22........................................ 1,000,000 1,046,250
Philadelphia Electric Co. First Mortgage Bonds,
5.625%, 11/01/01........................................ 500,000 483,125
Public Service Co. -- N.H. First Mortgage Bonds,
9.170%, 05/15/98........................................ 500,000 522,500
Texas Utilities First Mortgage Bonds,
5.875%, 04/01/98........................................ 1,000,000 991,250
----------
4,061,875
----------
TOTAL CORPORATE BONDS, NOTES AND DEBENTURES
(COST $21,715,477)...................................... 21,867,362
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MARKET VALUE
---------- ------------
<S> <C> <C>
TOTAL FIXED INCOME SECURITIES
(COST $52,770,050).................................. $ 53,036,585
------------
TOTAL INVESTMENTS -- 99.87%
(COST $152,255,300)/1/.............................. 152,622,804
------------
CASH AND OTHER ASSETS NET OF LIABILITIES --0.13%..... 197,662
------------
NET ASSETS -- 100.00%................................ $152,820,466
============
/1/Aggregate cost for federal income tax purposes is
$152,255,300; and net unrealized appreciation is as
follows:
Gross unrealized appreciation $3,280,697
Gross unrealized depreciation (2,913,193)
----------
Net unrealized appreciation $ 367,504
==========
</TABLE>
*Non-income producing security.
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION
- - ---------------------
<S> <C>
Common Stock 57%
Repurchase Agreements 9%
U.S. Government Obligations 7%
U.S. Government Agency Obligations 12%
Government Trust Certificates 1%
Aaa 1%
A 7%
Baa 3%
Ba 3%
----
100%
====
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
CT&T FUNDS -- SCHEDULE OF INVESTMENTS October 31, 1995
- - --------------------------------------------------------------------------------
MONTAG & CALDWELL BALANCED FUND
See accompanying notes to financial statements.
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
-------- ----------
<S> <C> <C> <C>
COMMON STOCKS -- 57.64%
COMMUNICATIONS -- 1.47%
Motorola, Inc. ......................................... 4,900 $ 321,562
----------
COMPUTER HARDWARE -- 10.61%
Adaptec, Inc.* ......................................... 8,500 378,250
Compaq Computer Corp.*.................................. 8,100 451,575
Intel Corp. ............................................ 8,400 586,950
Intelligent Electronics, Inc............................ 10,000 76,250
Seagate Technology, Inc.* .............................. 10,300 460,925
Solectron Corp.* ....................................... 9,200 370,300
----------
2,324,250
----------
COMPUTER SOFTWARE -- 6.65%
Cisco Systems, Inc.* ................................... 7,300 565,750
Microsoft Corp.* ....................................... 4,800 480,000
Oracle System Corp.* ................................... 9,400 410,075
----------
1,455,825
----------
CONSUMER DURABLES -- 1.28%
Harley Davidson, Inc. .................................. 10,500 280,875
----------
CONSUMER NON-DURABLES -- 6.54%
Gillette Co. ........................................... 9,500 459,563
International Flavors &
Fragrances, Inc. ...................................... 4,700 226,775
Mattel, Inc. ........................................... 12,180 350,175
Procter & Gamble Co. ................................... 4,900 396,900
----------
1,433,413
----------
ELECTRICAL EQUIPMENT -- 1.89%
Duracell International, Inc. ........................... 7,900 413,763
----------
ENTERTAINMENT & LEISURE -- 1.53%
Walt Disney Co. ........................................ 5,800 334,225
----------
FINANCIAL SERVICES -- 5.76%
Federal National Mortgage Association .................. 3,800 398,525
General Motors Corp. CL E............................... 8,100 381,713
Interpublic Group of Cos., Inc. ........................ 7,000 271,250
MBNA Corp. ............................................. 5,700 210,188
----------
1,261,676
----------
FOOD & BEVERAGE -- 7.20%
Coca-Cola Co. .......................................... 7,700 553,437
CPC International, Inc. ................................ 3,800 252,225
Kellogg Co. ............................................ 3,400 245,650
Pioneer Hi-Bred
International, Inc. ................................... 5,000 248,125
Wrigley, Wm. Jr., Co. .................................. 6,000 279,000
----------
1,578,437
----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
---------- -----------
<S> <C> <C>
HEALTH CARE-- 3.49%
Abbott Laboratories .................................... 9,000 $ 357,750
Johnson & Johnson ...................................... 5,000 407,500
-----------
765,250
-----------
LODGING-- 1.35%
Marriott International, Inc. ........................... 8,000 295,000
-----------
PHARMACEUTICALS-- 5.37%
Eli Lilly & Co. ........................................ 3,500 338,188
Merck & Co. ............................................ 7,500 431,250
Pfizer, Inc. ........................................... 7,100 407,362
-----------
1,176,800
-----------
RETAIL-- 3.89%
Home Depot, Inc. ....................................... 12,000 447,000
The Gap, Inc. .......................................... 10,300 405,562
-----------
852,562
-----------
TRANSPORTATION-- 0.61%
Atlantic Southeast Airlines, Inc. ...................... 5,400 133,650
-----------
TOTAL COMMON STOCK
(Cost $10,735,811) .................................... 12,627,288
-----------
MONEY MARKET FUND -- 0.40% (Cost $86,887)
Fidelity U.S. Government Reserves....................... 86,887 86,887
-----------
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
REPURCHASE
AGREEMENT -- 4.87%
(Cost $1,068,000)
United Missouri Bank,
U.S. Treasury Note,
$1,080,000 par, 7.5%
coupon, due 02/29/96, dated
10/31/95, to be sold on 11/01/95 at $1,068,157 ........ $1,068,000 1,068,000
-----------
</TABLE>
17
<PAGE>
CT&T FUNDS -- SCHEDULE OF INVESTMENTS October 31, 1995
- - --------------------------------------------------------------------------------
MONTAG & CALDWELL BALANCED FUND -- CONTINUED
See accompanying notes to financial statements.
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
FIXED INCOME SECURITIES -- 37.80%
U.S. GOVERNMENT OBLIGATIONS -- 20.03%
U.S. TREASURY NOTES -- 16.03%
9.500%, 11/15/95........................................ $ 25,000 $ 25,036
9.250%, 01/15/96........................................ 100,000 100,731
8.875%, 02/15/96........................................ 40,000 40,373
8.500%, 04/15/97........................................ 210,000 218,331
9.250%, 08/15/98........................................ 100,000 109,046
8.500%, 02/15/00........................................ 100,000 110,108
6.250%, 05/31/00........................................ 300,000 305,346
8.500%, 11/15/00........................................ 75,000 83,736
8.000%, 05/15/01........................................ 200,000 220,186
6.375%, 08/15/02........................................ 475,000 487,682
6.250%, 02/15/03........................................ 750,000 763,507
7.250%, 05/15/04........................................ 500,000 541,265
7.875%, 11/15/04........................................ 450,000 507,186
-----------
3,512,533
-----------
U.S. TREASURY STRIPS -- 2.44%
Zero Coupon, 02/15/06*.................................. 1,000,000 533,530
-----------
U.S. TREASURY BONDS -- 1.56%
7.500%, 11/15/16........................................ 80,000 90,093
8.000%, 11/15/21........................................ 160,000 191,310
7.250%, 08/15/22........................................ 55,000 60,719
-----------
342,122
-----------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $4,151,027)...................................... 4,388,185
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 7.84%
FEDERAL HOME LOAN BANK -- 1.40%
5.990%, 10/01/03........................................ 320,000 307,520
-----------
FEDERAL HOME LOAN MORTGAGE CORP. -- 4.61%
8.500%, 05/15/01, CMO REMIC............................. 24,323 24,366
7.000%, 11/15/01, CMO REMIC............................. 105,000 107,091
6.500%, 06/01/02, Mortgage Balloon Pass Through......... 297,437 298,087
6.500%, 06/15/04, CMO REMIC............................. 100,000 100,623
7.730%, 08/10/04, Debentures............................ 100,000 104,244
7.500%, 03/15/07, CMO REMIC............................. 125,000 127,336
7.500%, 07/15/07, CMO REMIC............................. 100,000 101,327
6.000%, 04/15/08, CMO REMIC............................. 150,000 146,751
-----------
1,009,825
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION-- 1.83%
7.500%, 03/01/99, Mortgage Pass Through................. 191,715 195,550
8.450%, 07/12/99, CMO REMIC............................. 75,000 81,233
6.000%, 02/25/07, CMO REMIC............................. 125,000 122,993
-----------
399,776
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $1,679,944)...................................... $ 1,717,121
-----------
ASSET BACKED NOTES -- 2.18%
Chemical Master Credit Card, 6.230%, 06/15/03........... $ 300,000 301,022
Discover Card Trust, 6.800%, 06/15/00................... 75,000 76,223
Discover Card Trust, 6.250%, 08/16/00................... 50,000 50,305
Paine Webber Trust, 9.000%, 10/20/99, CMO -- Corporate.. 50,000 50,766
-----------
TOTAL ASSET BACKED NOTES
(Cost $474,086)........................................ 478,316
-----------
CORPORATE BONDS, NOTES AND DEBENTURES-- 7.75%
CONSUMER NON-DURABLES -- 0.28%
Phillip Morris Cos., Inc. Notes, 9.000%, 01/01/01....... 55,000 60,981
-----------
ENERGY -- 0.37%
BP America, Inc. Notes, 7.875%, 05/15/02................ 75,000 81,281
-----------
FINANCIAL SERVICES -- 3.60%
American General Finance Corp. Notes, 7.200%, 07/08/99.. 55,000 56,719
Chrysler Financial Corp. Notes, 8.500%, 11/23/06**...... 100,000 100,000
First Union Corp. Notes, 9.450%, 06/15/99............... 75,000 82,781
Ford Capital Notes, 9.125%, 05/01/98.................... 75,000 80,156
General Electric Capital Corp. Notes, 6.020%, 07/29/97.. 130,000 130,325
International Bank for Reconstruction and Development,
8.125%, 03/01/01....................................... 75,000 82,219
MBNA Corp. Notes, 6.875%, 06/01/05...................... 125,000 125,156
Merrill Lynch & Co., Inc. Notes, 8.250%, 11/15/99....... 75,000 80,156
World Book Finance, Inc. Notes 8.125%, 09/01/96......... 50,000 51,006
-----------
788,518
-----------
INSURANCE -- 0.76%
Cigna Corp. Notes, 8.750%, 10/01/01..................... 50,000 54,938
National Re Corp. Notes,
8.850%, 01/15/05....................................... 100,000 111,500
-----------
166,438
-----------
</TABLE>
18
<PAGE>
CT&T FUNDS -- SCHEDULE OF INVESTMENTS October 31, 1995
- - --------------------------------------------------------------------------------
MONTAG & CALDWELL BALANCED FUND -- CONTINUED
See accompanying notes to financial statements.
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
FIXED INCOME SECURITIES -- CONTINUED
RETAIL -- 2.74%
J.C. Penney & Co. Debentures, 9.750%, 06/15/21...... $ 500,000 $ 600,625
TOTAL CORPORATE BONDS,
NOTES AND DEBENTURES
(Cost $1,655,832) ................................. 1,697,843
-----------
TOTAL FIXED INCOME SECURITIES
(Cost $7,960,889) ................................. 8,281,465
-----------
TOTAL INVESTMENTS -- 100.71%
(Cost $19,851,587)/1/.............................. 22,063,640
-----------
LIABILITIES NET OF OTHER ASSETS -- (0.71%) ......... (155,466)
-----------
NET ASSETS -- 100.00%............................... $21,908,174
===========
/1/Aggregate cost for federal income tax purposes is
$19,857,593; and net unrealized appreciation is as
follows:
Gross unrealized appreciation $2,292,534
Gross unrealized depreciation (86,487)
----------
Net unrealized appreciation $2,206,047
==========
</TABLE>
* Non-income producing security.
** Security is callable on 11/23/96 at which date a step-up, annually reset
interest rate begins.
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION
- - ---------------------
<S> <C>
Common Stock 57%
Repurchase Agreement 5%
U.S. Government Obligations 20%
U.S. Government Agency Obligations 8%
Aaa 4%
A 6%
----
100%
====
</TABLE>
19
<PAGE>
CT&T FUNDS -- SCHEDULE OF INVESTMENTS October 31, 1995
- - --------------------------------------------------------------------------------
CHICAGO TRUST BOND FUND
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
FIXED INCOME SECURITIES -- 94.70%
U.S. GOVERNMENT OBLIGATIONS -- 17.38%
U.S. TREASURY NOTES -- 7.20%
8.750%, 10/15/97......................................... $1,000,000 $ 1,057,340
5.125%, 11/30/98......................................... 1,000,000 984,190
6.375%, 01/15/00......................................... 1,000,000 1,021,820
6.375%, 08/15/02......................................... 1,000,000 1,026,700
5.750%, 08/15/03......................................... 1,000,000 986,960
-----------
5,077,010
-----------
U.S. TREASURY BONDS -- 10.18%
5.625%, 01/31/98......................................... 1,000,000 999,580
5.500%, 02/28/99......................................... 1,000,000 993,630
5.750%, 10/31/00......................................... 1,000,000 997,850
7.250%, 05/15/04......................................... 1,000,000 1,082,530
6.500%, 05/15/05......................................... 1,000,000 1,035,150
7.125%, 02/15/23......................................... 1,000,000 1,090,090
6.250%, 08/15/23......................................... 1,000,000 977,970
-----------
7,176,800
-----------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $12,185,693)...................................... 12,253,810
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 33.17%
FEDERAL HOME LOAN MORTGAGE CORP. -- 11.32%
6.500%, 09/15/07, CMO REMIC.............................. 1,000,000 1,003,035
6.500%, 11/15/07, REMIC PAC-- Interest Only.............. 2,545,819 466,521
5.750%, 01/15/08, CMO REMIC.............................. 500,000 482,976
7.500%, 04/01/08......................................... 739,488 754,580
6.000%, 03/15/09, CMO REMIC.............................. 1,000,000 916,531
6.500%, 06/01/09, CMO REMIC.............................. 1,775,150 1,764,970
7.000%, 11/15/13, CMO PAC --Interest Only................ 2,825,000 292,839
6.500%, 02/15/21......................................... 1,090,000 1,067,442
6.000%, 12/15/23, CMO REMIC.............................. 1,400,000 1,229,079
-----------
7,977,973
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 9.99%
5.240%, 07/15/98......................................... 2,000,000 1,965,780
6.000%, 06/25/02, CMO REMIC.............................. 1,500,000 1,492,434
6.250%, 07/25/02, CMO REMIC.............................. 1,500,000 1,497,604
7.000%, 07/01/08......................................... 532,357 536,849
7.000%, 07/25/17, CMO PAC --Interest Only................ 3,394,503 406,526
8.000%, 12/25/18......................................... 5,789 5,764
6.750%, 07/25/23, CMO REMIC.............................. 1,200,000 1,139,484
-----------
7,044,441
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 11.86%
7.000%, 05/15/08......................................... $1,004,989 $ 1,019,083
8.000%, 06/15/17......................................... 1,272,667 1,309,768
7.500%, 04/15/23......................................... 1,118,731 1,135,163
7.500%, 04/15/23......................................... 1,412,256 1,432,662
7.000%, 10/15/23......................................... 3,482,090 3,463,592
-----------
8,360,268
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $23,281,193)...................................... 23,382,682
-----------
GOVERNMENT TRUST CERTIFICATES -- 1.13%
(Cost $793,250)
GTC Israel, 9.250%, 11/15/01 -- Class IC................. 725,000 793,875
-----------
ASSET BACKED NOTES -- 0.36%
Premier Auto Trust,
5.900%, 11/15/97........................................ 149,190 149,100
Household Credit Card Trust, 7.375%, 10/15/97............ 104,167 104,355
-----------
TOTAL ASSET BACKED NOTES
(Cost $256,920)......................................... 253,455
-----------
CORPORATE BONDS, NOTES AND DEBENTURES -- 42.66%
AIRLINES -- 3.01%
AMR Corp. Debentures, 10.000%, 04/15/21.................. 1,150,000 1,364,188
Delta Airlines, Inc. Equipment Trust Bonds,
8.540%, 01/02/07........................................ 469,468 502,342
Delta Airlines, Inc.
9.375%, 09/11/07 ....................................... 229,994 258,168
-----------
2,124,698
-----------
COMMUNICATIONS -- 0.76%
Motorola, Inc. Debentures, 7.500%, 05/15/25.............. 500,000 536,250
-----------
COMPUTERS -- 2.16%
International Business Machines Corp. Notes,
6.375%, 06/15/00........................................ 750,000 755,626
Unisys Corp. Senior Debentures, 9.750%, 09/15/16......... 800,000 764,000
-----------
1,519,626
-----------
ELECTRONICS -- 1.18%
Eaton Corp. Debentures,
8.000%, 08/15/06........................................ 750,000 833,437
-----------
</TABLE>
See accompanying notes to financial statements.
20
<PAGE>
CT&T FUNDS -- SCHEDULE OF INVESTMENTS October 31, 1995
- - --------------------------------------------------------------------------------
CHICAGO TRUST BOND FUND -- CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
FIXED INCOME SECURITIES -- CONTINUED
ENERGY -- 1.99%
Gulf Canada Resources, Ltd. Senior Subordinated
Debentures
9.250%, 01/15/04....................................... $ 750,000 $ 753,750
YPF Sociedad Anonima,
8.000%, 02/15/04....................................... 750,000 648,750
-----------
1,402,500
-----------
ENTERTAINMENT -- 1.01%
Time Warner, Inc. Convertible Subordinated Debentures,
8.750%, 01/10/15....................................... 681,750 709,872
-----------
EQUIPMENT -- 2.02%
John Deere Capital Corp. Debentures,
8.625%, 08/01/19....................................... 1,275,000 1,420,031
-----------
FINANCIAL SERVICES -- 15.27%
Chrysler Financial Corp., 6.625%, 08/15/00.............. 1,250,000 1,264,062
CNA Financial Corp. Debentures, 7.250%, 11/15/23........ 500,000 478,125
Federal Realty Investment Trust Convertible Subordinated
Bonds, 5.250%, 10/28/03................................ 1,000,000 862,197
General Motors Acceptance Corp. Notes,
7.750%, 01/15/99....................................... 750,000 782,812
Goldman Sachs Group L.P. -- 144A, 6.375%, 06/15/00...... 1,000,000 985,000
John Hancock Life Insurance Co. Surplus Notes,
7.375%, 02/15/24....................................... 1,000,000 962,500
Heller Financial Corp. Notes, 5.625%, 03/15/00.......... 1,250,000 1,214,062
Leucadia National Corp. Senior Subordinated Notes,
8.250%, 06/15/05....................................... 1,000,000 1,010,000
Metropolitan Life Insurance Co.-- 144A Surplus Notes,
6.300%, 11/01/03....................................... 1,000,000 958,750
Pacific Mutual Life Insurance Co.-- 144A Surplus Notes,
7.900%, 12/30/23....................................... 1,250,000 1,229,688
U.S. Leasing International, Inc. Notes, 7.000%,
11/01/97............................................... 1,000,000 1,020,000
-----------
10,767,196
-----------
FOOD & BEVERAGE--0.71%
Nabisco, Inc. Notes,
6.700%, 06/15/02....................................... 500,000 501,250
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------- ----------
<S> <C> <C>
HEALTHCARE -- 1.78%
Columbia/HCA Healthcare Corp. Notes, 7.690%, 06/15/25.... $1,200,000 $1,252,500
----------
MANUFACTURING -- 2.29%
Figgie International, Inc. Senior Notes, 9.875%,
10/01/99................................................ 1,000,000 1,002,500
Owens-Illinois, Inc. Senior Debentures,
11.000%, 12/01/03....................................... 550,000 611,187
----------
1,613,687
----------
NATURAL GAS -- 1.84%
Consolidated Natural Gas Converible Subordinated
Debentures,
7.250%, 12/15/15........................................ 1,250,000 1,300,000
----------
RETAIL -- 1.96%
Federated Department Stores Senior Debentures,
8.125%, 10/15/02........................................ 750,000 759,375
Southland Corp. Senior Subordinated Debentures, 5.000%,
12/15/03................................................ 750,000 622,500
----------
1,381,875
TRANSPORTATION -- 1.08%
Santa Fe Pacific Gold Corp. Senior Debentures,
8.375%, 07/01/05........................................ 750,000 758,437
----------
UTILITIES -- 5.60%
Commonwealth Edison Co. First Mortgage Bonds,
8.000%, 04/15/23........................................ 1,000,000 1,018,750
Long Island Lighting Co. Debentures,
9.000%, 11/01/22........................................ 1,250,000 1,307,813
Philadelphia Electric Co. First Mortgage Bonds,
5.625%, 11/01/01........................................ 650,000 628,063
Texas Utilities Electric Co. First Mortgage Bonds,
5.875%, 04/01/98........................................ 1,000,000 991,250
----------
3,945,876
----------
TOTAL CORPORATE BONDS, NOTES AND DEBENTURES
(COST $29,728,566)...................................... 30,067,235
----------
TOTAL FIXED INCOME SECURITIES
(Cost $66,245,622)...................................... 66,751,057
----------
</TABLE>
See accompanying notes to financial statements.
21
<PAGE>
CT&T FUNDS -- SCHEDULE OF INVESTMENTS October 31, 1995
- - --------------------------------------------------------------------------------
CHICAGO TRUST BOND FUND -- CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
REPURCHASE
AGREEMENT -- 4.79%
(Cost $3,377,000)
First Chicago, U.S.
Treasury Notes, $3,275,000 par, 7.875% coupon, due
04/15/98, dated 10/31/95, to be sold on 11/01/95 at
$3,377,551........................................... $3,377,000 $ 3,377,000
-----------
TOTAL INVESTMENTS -- 99.49%
(Cost $69,622,622)/1/................................. 70,128,057
-----------
CASH AND OTHER ASSETS
NET OF LIABILITIES -- 0.51% ......................... 362,278
-----------
NET ASSETS -- 100.00% ................................ $70,490,335
===========
/1/Aggregate cost for federal income tax purposes is
$69,622,622; and net unrealized appreciation is as
follows:
Gross unrealized appreciation $ 635,532
Gross unrealized depreciation (130,097)
----------
Net unrealized appreciation $ 505,435
==========
</TABLE>
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION
- - ---------------------
<S> <C>
U.S. Government Obligations 18%
U.S. Government Agency Obligations 33%
Government Trust Certificates 1%
Aaa 2%
Aa 2%
A 18%
Baa 9%
Ba 9%
B 3%
Repurchase Agreement 5%
----
100%
====
</TABLE>
See accompanying notes to financial statements.
22
<PAGE>
CT&T FUNDS -- SCHEDULE OF INVESTMENTS October 31, 1995
- - --------------------------------------------------------------------------------
CHICAGO TRUST MUNICIPAL BOND FUND
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- -----------
<S> <C> <C>
MUNICIPAL BONDS -- 97.36%
ARIZONA -- 4.05%
Salt River Project Electric System Revenue, Refunding
Series A,
5.500%, 01/01/05........................................ $450,000 $ 472,937
-----------
FLORIDA -- 4.98%
Florida State Dade County Road
4.700%, 07/01/97........................................ 475,000 480,862
Putnum County, FL Development Authority Revenue
4.000%, 09/01/24*....................................... 100,000 100,000
-----------
580,862
-----------
GEORGIA -- 4.34%
State of Georgia, G.O.
6.100%, 03/01/05........................................ 250,000 276,280
State of Georgia, G.O.
6.700%, 08/01/09........................................ 200,000 231,008
-----------
507,288
-----------
ILLINOIS -- 8.19%
Cook County, Illinois Series B, G.O., MBIA Insured
4.700%, 11/15/01........................................ 475,000 477,346
State of Illinois, G.O.
5.400%, 06/01/96........................................ 475,000 478,971
-----------
956,317
-----------
MAINE -- 1.09%
State of Maine, G.O.
4.700%, 04/15/99........................................ 125,000 126,767
-----------
MASSACHUSETTS -- 3.22%
Massachusetts Municipal Wholesale Electric Revenue, AMBAC
Insured
6.000%, 07/01/04........................................ 350,000 376,093
-----------
MINNESOTA -- 2.28%
State of Minnesota, G.O.
4.900%, 08/01/98........................................ 260,000 265,850
-----------
NEVADA -- 7.38%
Clark County Nevada School District, G.O., FGIC Insured
6.400%, 06/15/06........................................ 350,000 387,072
State of Nevada, Water Pollution Control, Revolving
Funding, G.O.
4.100%, 11/01/98........................................ 475,000 474,534
-----------
861,606
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- -----------
<S> <C> <C>
NEW JERSEY -- 3.69%
South Brunswick Township Board of Education, G.O.,
6.300%, 04/01/05......................................... $200,000 $ 219,166
State of New Jersey, G.O.
5.500%, 02/15/04......................................... 200,000 211,356
-----------
430,522
-----------
NEW YORK -- 5.48%
Hempstead Town, G.O.,
FGIC Insured
5.625%, 02/01/07......................................... 375,000 394,125
New York State Dorm.
Authority Revenue
5.100%, 05/15/03......................................... 250,000 245,580
-----------
639,705
-----------
NORTH CAROLINA -- 2.36%
Brunswick County, G.O.,
AMBAC Insured
4.300%, 03/01/97......................................... 275,000 276,031
-----------
OREGON -- 4.55%
Portland Oregon, G.O.
7.00%, 06/01/01.......................................... 250,000 281,658
State of Oregon
Veterans Welfare, G.O.
5.100%, 04/01/06......................................... 250,000 250,000
-----------
531,658
-----------
PENNSYLVANIA -- 2.21%
Commonwealth of Pennsylvania, G.O., MBIA Insured
5.10%, 06/15/03.......................................... 250,000 258,190
-----------
PUERTO RICO -- 3.85%
Commonwealth of Puerto Rico, G.O., MBIA Insured
6.50%, 07/01/03.......................................... 400,000 450,116
-----------
RHODE ISLAND -- 2.54%
State of Rhode Island, G.O.,
FGIC Insured
6.00%, 06/15/02.......................................... 275,000 296,829
-----------
TENNESSEE -- 4.08%
Shelby County, Series A, G.O.
4.50%, 03/01/96.......................................... 475,000 476,249
-----------
</TABLE>
See accompanying notes to financial statements.
23
<PAGE>
CT&T FUNDS -- SCHEDULE OF INVESTMENTS October 31, 1995
- - --------------------------------------------------------------------------------
CHICAGO TRUST MUNICIPAL BOND FUND -- CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- -----------
<S> <C> <C>
MUNICIPAL BONDS -- CONTINUED
TEXAS -- 13.41%
Arlington Independent School District, Refunding, G.O.
5.40%, 02/15/99......................................... $375,000 $ 387,094
Carrollton, Texas, G.O.,
Prerefunded 02/15/97
6.50%, 02/15/00......................................... 245,000 253,007
Plano Independant School
District, G.O.
5.50%, 02/15/10......................................... 250,000 251,215
Texas State Public Finance Authority, G.O.
5.60%, 10/01/02 200,000 212,882
Texas Water Development Board, G.O., Escrowed to Maturity
5.00%, 08/01/99......................................... 450,000 462,186
-----------
1,566,384
-----------
UTAH -- 5.96%
Jordan School District,
Series A, G.O.
5.25%, 06/15/00 ........................................ 475,000 490,594
Utah State Building
Authority Revenue
5.125%, 05/15/03........................................ 200,000 205,916
-----------
696,510
-----------
VIRGINIA -- 4.08%
Virginia Public School
Authority Revenue
5.50%, 08/01/03 ........................................ 450,000 476,568
-----------
WASHINGTON -- 4.35%
King County, Washington,
Series A, G.O.
5.80%, 01/01/04 ........................................ 475,000 508,568
-----------
WISCONSIN -- 5.27%
Milwaukee, Wisconsin,
Series CB-2, G.O.
4.25%, 12/15/00 ........................................ 350,000 347,998
State of Wisconsin, G.O.
5.75%, 05/01/04......................................... 250,000 267,950
-----------
615,948
-----------
TOTAL MUNICIPAL BONDS
(Cost $11,137,856)...................................... 11,370,998
-----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
-------- -----------
<S> <C> <C>
TAX EXEMPT MONEY
MARKET FUNDS -- 0.72%
Goldman Sachs Tax Exempt Fund.......................... 9,869 $ 9,869
Provident Munifund..................................... 74,098 74,098
-----------
TOTAL TAX EXEMPT MONEY MARKET FUNDS
(Cost $83,967)........................................ 83,967
-----------
TOTAL INVESTMENTS -- 98.08% (Cost $11,221,823)/1/...... 11,454,965
-----------
OTHER ASSETS NET OF LIABILITIES -- 1.92%............... 224,533
-----------
NET ASSETS -- 100.00%.................................. $11,679,498
===========
/1/Aggregate cost for federal income tax purposes is
$11,221,823; and net unrealized appreciation is as
follows:
Gross unrealized appreciation $259,331
Gross unrealized depreciation (26,189)
--------
Net unrealized appreciation $233,142
========
</TABLE>
* Variable rate security. The rate shown is the rate in effect at October 31,
1995.
<TABLE>
<CAPTION>
PORTFOLIO
COMPOSITION
- - -----------
<S> <C>
Aaa 42%
Aa 49%
A 4%
Baa 2%
NR 2%
Money Market 1%
----
100%
====
</TABLE>
See accompanying notes to financial statements.
24
<PAGE>
CT&T FUNDS -- SCHEDULE OF INVESTMENTS October 31, 1995
- - --------------------------------------------------------------------------------
CHICAGO TRUST MONEY MARKET FUND
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
---------- -----------
<S> <C> <C>
BANKERS' ACCEPTANCES -- 2.90%
Bank of Tokyo Trust (NY)
5.820%, 11/06/95 ...................................... $3,000,000 $ 2,997,575
National Westminster Bank
5.660%, 11/28/95 ...................................... 3,000,000 2,987,265
-----------
TOTAL BANKERS' ACCEPTANCES ............................. 5,984,840
-----------
CERTIFICATES OF DEPOSIT -- 4.37%
Old Kent Bank
5.750%, 11/24/95 ...................................... 4,500,000 4,500,000
Old Kent Bank
5.750%, 12/22/95 ...................................... 4,500,000 4,500,000
-----------
TOTAL CERTIFICATES OF DEPOSIT........................... 9,000,000
-----------
COMMERCIAL PAPER -- 66.14%
Chevron Oil Finance Co.
5.746%, 11/01/95 ...................................... 4,500,000 4,500,000
Household Finance Corp.
5.766%, 11/02/95 ...................................... 4,500,000 4,500,000
Chevron Oil Finance Co.
5.747%, 11/03/95 ...................................... 4,500,000 4,500,000
Avco Financial Services, Inc.
5.792%, 11/06/95 ...................................... 1,525,000 1,525,000
Household Finance Corp.
5.783%, 11/07/95....................................... 4,500,000 4,500,000
Norwest Financial Corp.
5.762%, 11/08/95....................................... 4,527,000 4,521,939
John Deere Capital Corp.
5.785%, 11/09/95....................................... 4,500,000 4,500,000
General Electric Capital Corp.
5.788%, 11/13/95....................................... 4,100,000 4,100,000
IBM Credit Corp.
5.790%, 11/14/95....................................... 4,500,000 4,500,000
Prudential Funding Corp.
5.753%, 11/14/95....................................... 9,000,000 9,000,000
General Motors Acceptance Corp.
5.852%, 11/15/95....................................... 4,533,000 4,522,758
General Electric Capital Corp.
5.791%, 11/16/95....................................... 4,100,000 4,100,000
Norwest Financial Corp.
5.762%, 11/17/95....................................... 4,532,000 4,520,479
John Deere Capital Corp.
5.765%, 11/20/95....................................... 4,500,000 4,500,000
CIT Group Holdings, Inc.
5.768%, 11/21/95....................................... 4,500,000 4,500,000
IBM Corp.
5.733%, 11/22/95....................................... 4,500,000 4,500,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
---------- -----------
<S> <C> <C>
Heller Financial, Inc.
5.733%, 11/27/95....................................... $4,500,000 $ 4,500,000
Shell Oil Co.
5.672%, 11/28/95....................................... 1,500,000 1,493,666
Transamerica Finance Group, Inc.
5.770%, 11/29/95....................................... 4,532,000 4,511,802
Chrysler Financial Corp.
5.805%, 11/30/95....................................... 2,600,000 2,600,000
Ford Motor Credit Corp.
5.751%, 11/30/95....................................... 1,900,000 1,900,000
Beneficial Corp.
5.756%, 12/01/95....................................... 4,500,000 4,500,000
CIT Group Holdings, Inc.
5.757%, 12/04/95....................................... 4,500,000 4,500,000
Commercial Credit Co.
5.736%, 12/05/95....................................... 4,529,000 4,504,619
Beneficial Corp.
5.760%, 12/06/95....................................... 4,500,000 4,500,000
American General Finance Corp.
5.760%, 12/07/95....................................... 4,500,000 4,500,000
Sears Roebuck Acceptance Corp.
5.796%, 12/08/95....................................... 4,500,000 4,500,000
Sears Roebuck Acceptance Corp.
5.793%, 12/13/95....................................... 4,500,000 4,500,000
Avco Financial Services, Inc.
5.784%, 12/14/95....................................... 4,500,000 4,500,000
Ford Motor Credit Corp.
5.752%, 12/15/95....................................... 4,500,000 4,500,000
Chrysler Financial Corp.
5.774%, 12/18/95....................................... 3,500,000 3,500,000
American General Finance Corp.
5.757%, 12/28/95....................................... 4,500,000 4,500,000
-----------
TOTAL COMMERCIAL PAPER.................................. 136,300,263
-----------
TIME DEPOSITS -- 9.03%
Canadian Imperial Bank of Commerce
5.740%, 11/10/95....................................... 6,600,000 6,600,000
Royal Bank of Canada
5.700%, 12/29/95....................................... 4,500,000 4,500,000
Canadian Imperial Bank of Commerce
5.710%, 01/31/96....................................... 2,500,000 2,500,000
Toronto Dominion Bank
5.719%, 04/17/96....................................... 5,000,000 5,000,000
-----------
TOTAL TIME DEPOSITS..................................... 18,600,000
-----------
</TABLE>
See accompanying notes to financial statements.
25
<PAGE>
CT&T FUNDS -- SCHEDULE OF INVESTMENTS October 31, 1995
- - --------------------------------------------------------------------------------
CHICAGO TRUST MONEY MARKET FUND -- CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
----------- -----------
<S> <C> <C>
REPURCHASE
AGREEMENT -- 17.76%
(Cost $36,598,000)
J.P. Morgan. U.S. Treasury Notes, $33,146,000 par,
8.875% coupon, due 11/15/98, dated 10/31/95, to be
sold on 11/01/95 at $36,604,049...................... $36,598,000 $36,598,000
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
--------- ------------
<S> <C> <C>
TOTAL INVESTMENTS* -- 100.20%........................... $206,483,103
------------
LIABILITIES NET OF CASH AND OTHER ASSETS -- (0.20%)..... (407,789)
------------
NET ASSETS -- 100.00% .................................. $206,075,314
============
</TABLE>
* At October 31, 1995, cost is identical for book and federal income tax
purposes.
See accompanying notes to financial statements.
26
<PAGE>
CT&T FUNDS -- STATEMENT OF ASSETS AND LIABILITIES October 31, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONTAG &
CALDWELL CHICAGO TRUST CHICAGO TRUST CHICAGO TRUST
GROWTH GROWTH & INCOME TALON ASSET ALLOCATION
FUND FUND FUND FUND
----------- --------------- ------------- ----------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities
at value/1/ (Cost
$34,128,771,
$168,313,951, $11,036,631
and $152,255,300,
respectively)............ $40,016,874 $172,622,706 $11,896,767 $152,622,804
Cash...................... 0 868 505 620
Receivables:
Dividends and interest.... 32,583 116,493 1,095 839,893
Fund shares sold ......... 335,131 120,249 0 114,288
Securities sold .......... 0 0 304,473 0
Due from Advisor, net .... 4,759 0 31,190 0
Deferred organization
costs (Note A).. 13,344 15,581 12,951 6,843
Other assets.............. 1,700 7,917 478 19,509
----------- ------------ ----------- ------------
Total assets............. 40,404,391 172,883,814 12,247,459 153,603,957
----------- ------------ ----------- ------------
LIABILITIES:
Payables:
Securities purchased ..... 0 0 1,687,455 0
Fund shares redeemed ..... 19,770 472,288 1,785 646,627
Due to Advisor, net ...... 0 46,371 0 74,726
Accrued expenses ......... 29,572 69,450 20,365 62,138
----------- ------------ ----------- ------------
Total liabilities........ 49,342 588,109 1,709,605 783,491
----------- ------------ ----------- ------------
NET ASSETS:
Applicable to 3,065,642,
13,352,906, 873,131, and
18,134,536 shares
outstanding,
respectively............. $40,355,049 $172,295,705 $10,537,854 $152,820,466
=========== ============ =========== ============
NET ASSETS CONSIST OF:
Capital paid-in........... $34,739,903 $166,884,192 $ 9,036,356 $151,979,099
Accumulated undistributed
net investment income ... 1,155 126,356 2,563 466,569
Accumulated net realized
gain (loss) on
investments.............. (274,112) 976,402 638,799 7,294
Net unrealized
appreciation/depreciation
on investments........... 5,888,103 4,308,755 860,136 367,504
----------- ------------ ----------- ------------
$40,355,049 $172,295,705 $10,537,854 $152,820,466
=========== ============ =========== ============
Net asset value and
redemption price per
share.................... $ 13.16 $ 12.90 $ 12.07 $ 8.43
=========== ============ =========== ============
</TABLE>
/1/ Investments in securities at value include investments in repurchase
agreements of $3,084,000, $15,440,000, $2,344,000 and $13,246,000,
respectively.
See accompanying notes to financial statements.
27
<PAGE>
CT&T FUNDS -- STATEMENT OF ASSETS AND LIABILITIES October 31, 1995 (continued)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONTAG &
CALDWELL CHICAGO TRUST CHICAGO TRUST
BALANCED CHICAGO TRUST MUNICIPAL BOND MONEY MARKET
FUND BOND FUND FUND FUND
----------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities
at value/1/ (Cost
$19,851,587, $69,622,622,
$11,221,823 and
$206,483,103,
respectively)............ $22,063,640 $70,128,057 $11,454,965 $206,483,103
Cash...................... 0 735 0 11,625
Receivables:
Dividends and interest.... 157,055 1,035,406 193,191 451,690
Fund shares sold ......... 75,461 130,413 0 0
Securities sold .......... 0 0 0 0
Due from Advisor, net .... 21,762 11,725 38,663 0
Deferred organization
costs (Note A)........... 13,344 15,581 15,581 15,581
Other assets.............. 930 3,165 525 8,356
----------- ----------- ----------- ------------
Total assets............. 22,332,192 71,325,082 11,702,925 206,970,355
----------- ----------- ----------- ------------
LIABILITIES:
Payables:
Securities purchased ..... 397,244 767,841 0 0
Fund shares redeemed ..... 137 25,236 0 0
Due to Advisor, net ...... 0 0 0 19,609
Distributions ............ 0 0 0 836,038
Accrued expenses ......... 26,637 41,670 23,427 39,394
----------- ----------- ----------- ------------
Total liabilities........ 424,018 834,747 23,427 895,041
----------- ----------- ----------- ------------
NET ASSETS:
Applicable to 1,807,375,
7,092,019, 1,158,953 and
206,075,314 shares
outstanding,
respectively............. $21,908,174 $70,490,335 $11,679,498 $206,075,314
=========== =========== =========== ============
NET ASSETS CONSIST OF:
Capital paid-in........... $19,702,212 $69,764,068 $11,552,049 $206,075,314
Accumulated undistributed
net investment income ... 54,957 194,531 21,784 0
Accumulated net realized
gain (loss) on
investments.............. (61,048) 26,301 (127,477) 0
Net unrealized
appreciation/depreciation
investments.............. 2,212,053 505,435 233,142 0
----------- ----------- ----------- ------------
$21,908,174 $70,490,335 $11,679,498 $206,075,314
=========== =========== =========== ============
Net asset value and
redemption price per
share.................... $ 12.12 $ 9.94 $ 10.08 $ 1.00
=========== =========== =========== ============
</TABLE>
/1/ Investments in securities at value include investments in repurchase
agreements of $1,068,000, $3,377,000, $0 and $36,598,000, respectively.
See accompanying notes to financial statements.
28
<PAGE>
CT&T FUNDS -- STATEMENT OF OPERATIONS For the Period Ended October 31, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONTAG &
CALDWELL CHICAGO TRUST CHICAGO TRUST
GROWTH GROWTH & CHICAGO TRUST ASSET ALLOCATION
FUNDA INCOME FUND TALON FUND FUNDB
---------- ------------- ------------- ----------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends................ $ 211,520 $ 412,420 $ 48,408 $129,872
Interest................. 78,080 162,001 117,948 510,968
---------- ---------- ---------- --------
Total investment income.. 289,600 574,421 166,356 640,840
---------- ---------- ---------- --------
EXPENSES:
Investment advisory fees
(Note E)................ 154,451 222,466 64,359 121,079
Distribution expenses
(Note E)................ 48,266 79,452 20,112 43,242
Transfer agent fees...... 37,628 42,128 40,233 3,456
Administration fees (Note
E)...................... 28,574 35,261 27,445 8,685
Accounting fees.......... 27,681 30,529 24,027 7,309
Registration expenses.... 21,029 14,812 21,106 3,545
Custodian fees........... 11,814 13,058 15,819 3,366
Auditing fees............ 11,572 11,572 13,672 11,500
Legal fees............... 10,373 9,376 8,669 704
Amortization of
organization costs (Note
A)...................... 3,323 4,997 3,332 157
Report to shareholder
expense................. 2,972 4,075 3,468 0
Trustees fees (Note E)... 1,607 1,607 1,607 0
Miscellaneous expenses... 513 1,395 263 21
---------- ---------- ---------- --------
Total expenses........... 359,803 470,728 244,112 203,064
Expenses reimbursed (Note
E)....................... (108,820) (127,632) (139,529) (30,094)
---------- ---------- ---------- --------
Net expenses............. 250,983 343,096 104,583 172,970
---------- ---------- ---------- --------
NET INVESTMENT INCOME..... 38,617 231,325 61,773 467,870
---------- ---------- ---------- --------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS:
Net realized gain (loss)
on investments
(including a realized
loss on option
transactions of $337,338
in the Talon Fund)...... (274,112) 1,384,988 667,438 5,993
Net change in unrealized
appreciation/depreciation
on investments
(including a change in
unrealized appreciation
on option transactions
of $5,810 in the Talon
Fund)................... 5,888,103 3,775,287 774,370 367,504
---------- ---------- ---------- --------
Net realized and
unrealized gain on
investments............. 5,613,991 5,160,275 1,441,808 373,497
---------- ---------- ---------- --------
INCREASE IN NET ASSETS
FROM OPERATIONS.......... $5,652,608 $5,391,600 $1,503,581 $841,367
========== ========== ========== ========
</TABLE>
See accompanying notes to financial statements.
29
<PAGE>
CT&T FUNDS -- STATEMENT OF OPERATIONS For the Period Ended October 31, 1995
(continued)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHICAGO
MONTAG & CALDWELL CHICAGO TRUST CHICAGO TRUST TRUST
BALANCED BOND MUNICIPAL BOND MONEY MARKET
FUNDC FUND FUND FUND
----------------- ------------- -------------- ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends................ $ 69,241 $ 4,167 $ 0 $ 0
Interest................. 333,426 1,636,128 498,479 8,608,933
---------- ---------- -------- ----------
Total investment income.. 402,667 1,640,295 498,479 8,608,933
---------- ---------- -------- ----------
EXPENSES:
Investment advisory fees
(Note E)................ 78,125 123,919 66,027 638,608
Distribution expenses
(Note E)................ 26,042 56,327 27,511 0
Transfer agent fees...... 37,454 39,417 36,764 38,800
Administration fees (Note
E)...................... 27,554 30,042 27,050 36,291
Accounting fees.......... 27,765 35,144 27,835 60,555
Registration expenses.... 21,247 15,353 14,365 52,932
Custodian fees........... 10,725 13,005 5,430 46,991
Auditing fees............ 12,572 12,571 13,872 15,571
Legal fees............... 10,373 9,373 9,373 9,373
Amortization of
organization costs (Note
A)...................... 3,323 4,997 4,997 4,997
Report to shareholder
expense................. 2,133 2,621 1,871 6,976
Trustees fees (Note E)... 1,607 1,607 1,607 1,607
Miscellaneous expenses... 340 1,388 1,214 9,090
---------- ---------- -------- ----------
Total expenses........... 259,260 345,764 237,916 921,791
Expenses reimbursed (Note
E)....................... (129,051) (165,348) (138,875) (292,002)
---------- ---------- -------- ----------
Net expenses............. 130,209 180,416 99,041 629,789
---------- ---------- -------- ----------
NET INVESTMENT INCOME..... 272,458 1,459,879 399,438 7,979,144
---------- ---------- -------- ----------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS:
Net realized gain (loss)
on investments.......... (61,733) 98,947 (120,833) 0
Net change in unrealized
appreciation/depreciation
on investments.......... 2,212,053 1,375,091 695,561 0
---------- ---------- -------- ----------
Net realized and
unrealized gain on
investments............. 2,150,320 1,474,038 574,728 0
---------- ---------- -------- ----------
INCREASE IN NET ASSETS
FROM OPERATIONS......... $2,422,778 $2,933,917 $974,166 $7,979,144
========== ========== ======== ==========
</TABLE>
a Montag & Caldwell Growth Fund commenced investment operations on November 2,
1994.
b Chicago Trust Asset Allocation Fund commenced investment operations on
September 21, 1995.
c Montag & Caldwell Balanced Fund commenced investment operations on November
2, 1994.
See accompanying notes to financial statements.
30
<PAGE>
CT&T FUNDS -- STATEMENT OF CHANGES IN NET ASSETS
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONTAG & CALDWELL CHICAGO TRUST
GROWTH FUND GROWTH & INCOME FUND
----------------- --------------------------
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED PERIOD ENDED
10/31/95A 10/31/95 10/31/94D
----------------- ------------ ------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income............ $ 38,617 $ 231,325 $ 83,563
Net realized gain (loss) on
investments..................... (274,112) 1,384,988 (408,586)
Net change in unrealized
appreciation/depreciation on
investments..................... 5,888,103 3,775,287 533,468
----------- ------------ -----------
Increase in net assets from
operations...................... 5,652,608 5,391,600 208,445
----------- ------------ -----------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREOWNERS:
From net investment income....... (37,462) (119,541) (69,047)
----------- ------------ -----------
CAPITAL SHARE TRANSACTIONS --
NOTE C.......................... 34,739,903 154,741,840 12,117,408
----------- ------------ -----------
Total increase in net assets..... 40,355,049 160,013,899 12,256,806
NET ASSETS:
Beginning of period.............. 0 12,281,806 25,000
----------- ------------ -----------
End of period (including
undistributed net investment
income of $1,155, $126,356 and
$14,516, respectively).......... $40,355,049 $172,295,705 $12,281,806
=========== ============ ===========
</TABLE>
See accompanying notes to financial statements.
31
<PAGE>
CT&T FUNDS -- STATEMENT OF CHANGES IN NET ASSETS (continued)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHICAGO TRUST CHICAGO TRUST
TALON ASSET ALLOCATION
FUND FUND
------------------------- ----------------
FOR THE FOR THE FOR THE
YEAR ENDED PERIOD ENDED PERIOD ENDED
10/31/95 10/31/94E 10/31/95B
----------- ------------ ----------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income.............. $ 61,773 $ 8,092 $ 467,870
Net realized gain (loss) on
investments....................... 667,438 (28,639) 5,993
Net change in unrealized
appreciation/depreciation on
investments....................... 774,370 85,766 367,504
----------- ---------- ------------
Increase in net assets from
operations........................ 1,503,581 65,219 841,367
----------- ---------- ------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREOWNERS:
From net investment income......... (67,302) 0 0
----------- ---------- ------------
CAPITAL SHARE TRANSACTIONS -- NOTE
C.................................. 4,746,155 4,290,201 151,979,099
----------- ---------- ------------
Total increase in net assets....... 6,182,434 4,355,420 152,820,466
NET ASSETS:
Beginning of period................ 4,355,420 0 0
----------- ---------- ------------
End of period (including
undistributed net investment
income of $2,563, $8,092 and
$466,569, respectively)........... $10,537,854 $4,355,420 $152,820,466
=========== ========== ============
</TABLE>
See accompanying notes to financial statements.
32
<PAGE>
CT&T FUNDS -- STATEMENT OF CHANGES IN NET ASSETS (continued)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONTAG & CALDWELL CHICAGO TRUST
BALANCED BOND
FUND FUND
----------------- -------------------------
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED PERIOD ENDED
10/31/95C 10/31/95 10/31/94F
----------------- ----------- ------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income............. $ 272,458 $ 1,459,879 $ 608,690
Net realized gain (loss) on
investments...................... (61,733) 98,947 (103,369)
Net change in unrealized
appreciation/depreciation on
investments...................... 2,212,053 1,375,091 (869,656)
----------- ----------- -----------
Increase (decrease) in net assets
from operations.................. 2,422,778 2,933,917 (364,335)
----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREOWNERS:
From net investment income ....... (216,826) (1,276,210) (567,105)
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS -- NOTE
C................................. 19,702,222 56,287,035 13,452,033
----------- ----------- -----------
Total increase in net assets...... 21,908,174 57,944,742 12,520,593
NET ASSETS:
Beginning of period............... 0 12,545,593 25,000
----------- ----------- -----------
End of period (including
undistributed net investment
income of $54,957, $194,531,and
$41,585, respectively) .......... $21,908,174 $70,490,335 $12,545,593
=========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
33
<PAGE>
CT&T FUNDS -- STATEMENT OF CHANGES IN NET ASSETS (continued)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHICAGO TRUST CHICAGO TRUST
MUNICIPAL BOND MONEY MARKET
FUND FUND
------------------------- --------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED
10/31/95 10/31/94G 10/31/95 10/31/94H
----------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income.... $ 399,438 $ 277,755 $ 7,979,144 $ 2,527,279
Net realized loss on
investments............. (120,833) (6,644) 0 0
Net change in unrealized
appreciation/depreciation
on investments.......... 695,561 (462,419) 0 0
----------- ----------- ------------ ------------
Increase (decrease) in
net assets from
operations.............. 974,166 (191,308) 7,979,144 2,527,279
----------- ----------- ------------ ------------
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREOWNERS:
From net investment
income ................. (394,006) (261,403) (7,979,144) (2,527,279)
----------- ----------- ------------ ------------
CAPITAL SHARE TRANSACTIONS
-- NOTE C................ 637,249 10,889,800 83,146,083 122,904,231
----------- ----------- ------------ ------------
Total increase in net
assets.................. 1,217,409 10,437,089 83,146,083 122,904,231
NET ASSETS:
Beginning of period...... 10,462,089 25,000 122,929,231 25,000
----------- ----------- ------------ ------------
End of period (including
undistributed net
investment income of
$21,784, $16,352, $0 and
$0, respectively) ...... $11,679,498 $10,462,089 $206,075,314 $122,929,231
=========== =========== ============ ============
</TABLE>
a Montag & Caldwell Growth Fund commenced investment operations on November 2,
1994.
b Chicago Trust Asset Allocation Fund commenced investment operations on
September 21, 1995.
c Montag & Caldwell Balanced Fund commenced investment operations on November
2, 1994.
d Chicago Trust Growth & Income Fund commenced investment operations on
December 13, 1993.
e Chicago Trust Talon Fund commenced investment operations on September 19,
1994.
f Chicago Trust Bond Fund commenced investment operations on December 13, 1993.
g Chicago Trust Municipal Bond Fund commenced investment operations on December
13, 1993.
h Chicago Trust Money Market Fund commenced investment operations on December
14, 1993.
See accompanying notes to financial statements.
34
<PAGE>
CT&T FUNDS -- FINANCIAL HIGHLIGHTS
- - -------------------------------------------------------------------------------
The tables below set forth financial data for a share of beneficial interest
outstanding throughout each period presented.
<TABLE>
<CAPTION>
MONTAG & CALDWELL CHICAGO TRUST
GROWTH FUND GROWTH & INCOME FUND
----------------- -----------------------
PERIOD
PERIOD ENDED YEAR ENDED ENDED
10/31/95A 10/31/95 10/31/94D
----------------- ---------- ---------
<S> <C> <C> <C>
Net Asset Value, beginning of period. $ 10.00 $ 10.11 $ 10.00
------- -------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income............... 0.02 0.09 0.07
Net realized and unrealized gain on
investments........................ 3.16 2.79 0.10
------- -------- -------
Total from investment operations.... 3.18 2.88 0.17
------- -------- -------
LESS DISTRIBUTIONS FROM NET
INVESTMENT INCOME.................. (0.02) (0.09) (0.06)
------- -------- -------
Net Asset Value, end of period....... $ 13.16 $ 12.90 $ 10.11
======= ======== =======
TOTAL RETURN/2/ ..................... 31.87% 28.66% 1.73%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
000's)............................. $40,355 $172,296 $12,282
Ratio of expenses to average net
assets before reimbursement of
expenses by Advisor/1/............. 1.87% 1.50% 2.21%
Ratio of expenses to average net
assets after reimbursement of
expenses by Advisor/1/............. 1.30% 1.09%/3/ 1.20%
Ratio of net investment income to
average net assets before
reimbursement of expenses by
Advisor/1/......................... -0.36% 0.33% -0.15%
Ratio of net investment income to
average net assets after
reimbursement of expenses by
Advisor/1/......................... 0.20% 0.74% 0.86%
Portfolio turnover/2/............... 34.46% 9.00% 37.01%
</TABLE>
See accompanying notes to financial statements.
35
<PAGE>
CT&T FUNDS -- FINANCIAL HIGHLIGHTS (continued)
- - -------------------------------------------------------------------------------
The tables below set forth financial data for a share of beneficial interest
outstanding throughout each period presented.
<TABLE>
<CAPTION>
CHICAGO TRUST
CHICAGO TRUST ASSET ALLOCATION
TALON FUND FUND
-------------------- ----------------
PERIOD
YEAR ENDED ENDED PERIOD ENDED
10/31/95 10/31/94E 10/31/95B
---------- --------- ----------------
<S> <C> <C> <C>
Net Asset Value, beginning of period..... $ 10.25 $10.00 $ 8.34
------- ------ --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income................... 0.09 0.02 0.03
Net realized and unrealized gain on
investments............................ 1.84 0.23 0.06
------- ------ --------
Total from investment operations........ 1.93 0.25 0.09
------- ------ --------
LESS DISTRIBUTIONS FROM NET INVESTMENT
INCOME................................. (0.11) 0.00 0.00
------- ------ --------
Net Asset Value, end of period........... $ 12.07 $10.25 $ 8.43
======= ====== ========
TOTAL RETURN/2/.......................... 18.92% 2.50% 1.08%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's).... $10,538 $4,355 $152,820
Ratio of expenses to average net assets
before reimbursement of expenses by
Advisor/1/............................. 3.04% 7.82% 1.19%
Ratio of expenses to average net assets
after reimbursement of expenses by
Advisor/1/............................. 1.30% 1.30% 1.00%
Ratio of net investment income to
average net assets before reimbursement
of expenses by Advisor/1/.............. -0.97% -4.13% 2.56%
Ratio of net investment income to
average net assets after reimbursement
of expenses by Advisor/1/.............. 0.77% 2.39% 2.73%
Portfolio turnover/2/................... 229.43% 33.66% 0.72%
</TABLE>
See accompanying notes to financial statements.
36
<PAGE>
CT&T FUNDS -- FINANCIAL HIGHLIGHTS (continued)
- - -------------------------------------------------------------------------------
The tables below set forth financial data for a share of beneficial interest
outstanding throughout each period presented.
<TABLE>
<CAPTION>
MONTAG & CALDWELL CHICAGO TRUST
BALANCED FUND BOND FUND
----------------- -----------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED
10/31/95C 10/31/95 10/31/94F
----------------- ---------- ------------
<S> <C> <C> <C>
Net Asset Value, beginning of period. $ 10.00 $ 9.21 $ 10.00
------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income............... 0.26 0.60 0.50
Net realized and unrealized gain
(loss) on investments.............. 2.09 0.73 (0.82)
------- ------- -------
Total from investment operations.... 2.35 1.33 (0.32)
------- ------- -------
LESS DISTRIBUTIONS FROM NET
INVESTMENT INCOME.................. (0.23) (0.60) (0.47)
------- ------- -------
Net Asset Value, end of period....... $ 12.12 $ 9.94 $ 9.21
======= ======= =======
TOTAL RETURN/2/ ..................... 23.75% 14.89% -3.23%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
000's)............................. $21,908 $70,490 $12,546
Ratio of expenses to average net
assets before reimbursement of
expenses by Advisor/1/............. 2.50% 1.54% 2.02%
Ratio of expenses to average net
assets after reimbursement of
expenses by Advisor/1/............. 1.25% 0.80% 0.80%
Ratio of net investment income to
average net assets before
reimbursement of expenses by
Advisor/1/......................... 1.38% 5.78% 4.83%
Ratio of net investment income to
average net assets after
reimbursement of expenses by
Advisor/1/......................... 2.63% 6.52% 6.05%
Portfolio turnover/2/............... 27.33% 68.24% 20.73%
</TABLE>
See accompanying notes to financial statements.
37
<PAGE>
CT&T FUNDS -- FINANCIAL HIGHLIGHTS (continued)
- - -------------------------------------------------------------------------------
The tables below set forth financial data for a share of beneficial interest
outstanding throughout each period presented.
<TABLE>
<CAPTION>
CHICAGO TRUST
CHICAGO TRUST MUNICIPAL MONEY MARKET
BOND FUND FUND
----------------------- --------------------------
YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED
10/31/95 10/31/94G 10/31/95 10/31/94H
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Net Asset Value, beginning
of period.................. $ 9.56 $ 10.00 $ 1.00 $ 1.00
------- ------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income...... 0.35 0.27 0.05 0.03
Net realized and unrealized
gain (loss) on
investments............... 0.52 (0.46) 0.00 0.00
------- ------- -------- --------
Total from investment
operations................ 0.87 (0.19) 0.05 0.03
------- ------- -------- --------
LESS DISTRIBUTIONS FROM NET
INVESTMENT INCOME......... (0.35) (0.25) (0.05) (0.03)
------- ------- -------- --------
Net Asset Value, end of
period..................... $ 10.08 $ 9.56 $ 1.00 $ 1.00
======= ======= ======== ========
TOTAL RETURN/2/ ............ 9.29% -1.92% 5.56% 3.20%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's)................ $11,679 $10,462 $206,075 $122,929
Ratio of expenses to
average net assets before
reimbursement of expenses
by Advisor/1/............. 2.16% 2.09% 0.63% 0.64%
Ratio of expenses to
average net assets after
reimbursement of expenses
by Advisor/1/............. 0.90% 0.90% 0.43%/4/ 0.40%
Ratio of net investment
income to average net
assets before
reimbursement of expenses
by Advisor/1/............. 2.37% 1.90% 5.24% 3.49%
Ratio of net investment
income to average net
assets after reimbursement
of expenses by Advisor/1/. 3.63% 3.09% 5.44% 3.73%
Portfolio turnover/2/...... 42.81% 14.85% N/A N/A
</TABLE>
a Montag & Caldwell Growth Fund commenced investment operations on November 2,
1994.
b Chicago Trust Asset Allocation Fund commenced investment operations on
September 21, 1995.
c Montag & Caldwell Balanced Fund commenced investment operations on November
2, 1994.
d Chicago Trust Growth & Income Fund commenced investment operations on
December 13, 1993.
e Chicago Trust Talon Fund commenced investment operations on September 19,
1994.
f Chicago Trust Bond Fund commenced investment operations on December 13,
1993.
g Chicago Trust Municipal Bond Fund commenced investment operations on
December 13, 1993.
h Chicago Trust Money Market Fund commenced investment operations on December
14, 1993.
/1/ Annualized
/2/ Not annualized
/3/ Net Expense Ratio changed from 1.20% to 1.00% on September 21, 1995.
/4/ Net Expense Ratio changed from .40% to .50% on July 12, 1995.
See accompanying notes to financial statements.
38
<PAGE>
CT&T FUNDS -- NOTES TO FINANCIAL STATEMENTS October 31, 1995
- - -------------------------------------------------------------------------------
NOTE (A) SIGNIFICANT ACCOUNTING POLICIES: CT&T Funds (the "Company") operates
as a series company currently issuing eight series of shares of beneficial
interest: Montag & Caldwell Growth Fund (the "Growth Fund"), Chicago Trust
Growth & Income Fund (the "Growth & Income Fund"), Chicago Trust Talon Fund
(the "Talon Fund"), Chicago Trust Asset Allocation Fund (the Asset Allocation
Fund), Montag & Caldwell Balanced Fund (the "Balanced Fund"), Chicago Trust
Bond Fund (the "Bond Fund"), Chicago Trust Municipal Bond Fund (the "Municipal
Bond Fund"), and Chicago Trust Money Market Fund (the "Money Market Fund")
(each a "Fund" and collectively, the "Funds"). The Company constitutes a
diversified, open-end management investment company which is registered under
the Investment Company Act of 1940 as amended (the "Act"). The Company was
organized as a Delaware business trust on September 10, 1993. The Growth &
Income Fund, Bond Fund, and Municipal Bond Fund commenced investment
operations on December 13, 1993. The Money Market Fund commenced investment
operations on December 14, 1993. The Talon Fund commenced investment
operations on September 19, 1994. The Growth Fund and the Balanced Fund
commenced investment operations on November 2, 1994. The Asset Allocation Fund
commenced investment operations on September 21, 1995. The Chicago Trust
Company is the Investment Advisor for the Growth & Income Fund, the Talon
Fund, the Asset Allocation Fund, the Bond Fund, the Municipal Bond Fund, and
the Money Market Fund. Talon Asset Management, Inc. is the Sub-Investment
Advisor for the Talon Fund. Montag & Caldwell, Inc. is the Investment Advisor
for the Growth Fund and the Balanced Fund. The following is a summary of the
significant accounting policies consistently followed by each Fund in the
preparation of its financial statements. These policies are in conformity with
generally accepted accounting principles.
(1) SECURITY VALUATION: For the Growth Fund, the Growth & Income Fund, the
Talon Fund, the Asset Allocation Fund and the Balanced Fund, equity
securities and index options traded on a national exchange and over-the-
counter securities listed in the NASDAQ National Market System are valued
at the last reported sales price at the close of the New York Stock
Exchange. Securities for which there have been no sales on the valuation
date are valued at the mean of the last reported bid and asked prices on
their principal exchange. Over-the-counter securities not listed on the
NASDAQ National Market System are valued at the mean of the current bid
and asked prices. For the Asset Allocation Fund, the Balanced Fund, the
Bond Fund, and the Municipal Bond Fund, fixed income securities, except
short-term, are valued on the basis of prices provided by a pricing
service when such prices are believed by the Advisor to reflect the fair
market value of such securities. When fair market value quotations are not
readily available, securities and other assets are valued at fair value as
determined in good faith by the Board of Trustees. For all Funds, short-
term investments, those with a remaining maturity of 60 days or less, are
valued at amortized cost, which approximates market value. For the Money
Market Fund, all securities are valued at amortized cost, which
approximates market value. Under the amortized cost method, discounts and
premiums are accreted and amortized ratably to maturity and are included
in interest income.
(2) REPURCHASE AGREEMENTS: Each Fund may enter into repurchase agreements
with financial institutions, deemed to be credit worthy by the Fund's
Advisor, subject to the seller's agreement to repurchase and the Fund's
agreement to resell such securities at a mutually agreed upon price.
Securities purchased subject to repurchase agreements are deposited with
the Fund's custodian and, pursuant to the terms of the repurchase
39
<PAGE>
CT&T FUNDS -- NOTES TO FINANCIAL STATEMENTS October 31, 1995 (continued)
- - -------------------------------------------------------------------------------
agreement, must have an aggregate market value greater than or equal to
the repurchase price plus accrued interest at all times. If the value of
the underlying securities falls below the value of the repurchase price
plus accrued interest, the Fund will require the seller to deposit
additional collateral by the next business day. If the request for
additional collateral is not met, or the seller defaults on its repurchase
obligation, the Fund maintains the right to sell the underlying securities
at market value and may claim any resulting loss against the seller.
(3) DERIVATIVE FINANCIAL INSTRUMENTS: A derivative financial instrument in
very general terms refers to a security whose value is "derived" from the
value of an underlying asset, reference rate or index. A Fund has a
variety of reasons to use derivative instruments, such as to attempt to
protect the Fund against possible changes in the market value of its
portfolio and to manage the portfolio's effective yield, maturity and
duration. All of a Fund's portfolio holdings, including derivative
instruments, are marked to market each day with the change in value
reflected in the unrealized appreciation/depreciation on investments. Upon
disposition, a realized gain or loss is recognized accordingly, except for
exercised option contracts where the recognition of gain or loss is
postponed until the disposal of the security underlying the option
contract. Summarized below is a type of derivative financial instrument
which may be used by the Funds, except by the Money Market Fund.
An option contract gives the buyer the right, but not the obligation to
buy (call) or sell (put) an underlying item at a fixed exercise price
during a specified period. These contracts are used by a Fund to manage
the portfolio's effective maturity and duration.
Transactions in options for the Talon Fund for the period ended October
31, 1995 were as follows:
<TABLE>
<CAPTION>
CONTRACTS PREMIUM
--------- ---------
<S> <C> <C>
Outstanding at October 31, 1994........................ 42 $ (37,060)
Options purchased (Net)................................ 440 (359,512)
Options terminated in closing transactions (Net)....... (167) 152,872
Options expired (Net).................................. (285) 215,050
---- ---------
Outstanding at October 31, 1995........................ 30 $ (28,650)
==== =========
</TABLE>
(4) MORTGAGE BACKED SECURITIES: The Asset Allocation Fund, the Balanced
Fund and the Bond Fund invest in Mortgage Backed Securities (MBS),
representing interests in pools of mortgage loans. These securities
provide shareholders with payments consisting of both principal and
interest as the mortgages in the underlying mortgage pools are paid. Most
of the securities are guaranteed by federally sponsored agencies --
Government National Mortgage Association (GNMA), Federal National Mortgage
Association (FNMA) or Federal Home Loan Mortgage Corporation (FHLMC).
However, some securities may be issued by private, non-government
corporations. MBS issued by private agencies are not government securities
and are not directly guaranteed by any government agency. They are secured
by the underlying collateral of the private issuer. Yields on privately
issued MBS tend to be higher than those of government backed issues.
However, risk of loss due to default and sensitivity to interest rate
fluctuations is also higher.
40
<PAGE>
CT&T FUNDS -- NOTES TO FINANCIAL STATEMENTS October 31, 1995 (continued)
- - -------------------------------------------------------------------------------
The Asset Allocation Fund, the Balanced Fund and the Bond Fund also invest
in Collateralized Mortgage Obligations (CMOs) and Real Estate Mortgage
Investment Conduits (REMICs). A CMO is a bond which is collateralized by a
pool of MBS, and a REMIC is similar in form to a CMO. These MBS pools are
divided into classes or tranches with each class having its own
characteristics. The different classes are retired in sequence as the
underlying mortgages are repaid. A Planned Amortization Class (PAC) is a
specific class of mortgages which over its life will generally have the
most stable cash flows and the lowest prepayment risk. A GPM (Graduated
Payment Mortgage) is a negative amortization mortgage where the payment
amount gradually increases over the life of the mortgage. The early
payment amounts are not sufficient to cover the interest due, and
therefore, the unpaid interest is added to the principal, thus increasing
the borrower's mortgage balance. Prepayment may shorten the stated
maturity of the CMO and can result in a loss of premium, if any has been
paid.
The Asset Allocation Fund and the Bond Fund utilize Interest Only (IO)
securities, which increase the diversification of the portfolios and
manage risk. An Interest Only security is a class of MBS representing
ownership in the cash flows of the interest payments made from a specified
pool of MBS. The cash flow on this instrument decreases as the mortgage
principal balance is repaid by the borrower.
(5) INVESTMENT INCOME AND SECURITIES TRANSACTIONS: Dividend income is
recorded on the ex-dividend date. Interest income is accrued daily.
Securities transactions are accounted for on the date securities are
purchased or sold. The cost of securities sold is determined using the
first-in-first-out method.
(6) FEDERAL INCOME TAXES: The Funds have elected to be treated as
"regulated investment companies" under Sub-chapter M of the Internal
Revenue Code and to distribute substantially all of their respective net
taxable income. Accordingly, no provisions for Federal income taxes have
been made in the accompanying financial statements. The Funds intend to
utilize provisions of the federal income tax laws which allow them to
carry a realized capital loss forward for eight years following the year
of the loss and offset such losses against any future realized capital
gains. At October 31, 1995, the losses amounted to $274,112 for the Growth
Fund; $55,042 for the Balanced Fund; and $127,477 for the Municipal Bond
Fund. These amounts primarily expire October 31, 2003.
(7) DIVIDENDS AND DISTRIBUTIONS: Dividends and distributions to
shareowners are recorded on the ex-dividend date.
(8) ORGANIZATION COSTS: The Funds have reimbursed the Advisors for certain
costs incurred in connection with the Company's organization. The costs
are being amortized on a straight-line basis over five years commencing on
December 13, 1993 for the Growth & Income Fund, Bond Fund, and Municipal
Bond Fund; December 14, 1993 for the Money Market Fund; September 19, 1994
for the Talon Fund; November 2, 1994 for the Growth Fund and the Balanced
Fund; and September 21, 1995 for the Asset Allocation Fund.
NOTE (B) DIVIDENDS FROM NET INVESTMENT INCOME AND DISTRIBUTIONS OF CAPITAL
GAINS: With respect to the Growth Fund, the Growth & Income Fund, the Talon
Fund, the Asset Allocation Fund, and the Balanced Fund, dividends from net
investment income are distributed quarterly and net realized gains from
investment transactions, if any, are distributed to shareowners
41
<PAGE>
CT&T FUNDS -- NOTES TO FINANCIAL STATEMENTS October 31, 1995 (continued)
- - -------------------------------------------------------------------------------
annually. The Bond Fund and the Municipal Bond Fund distribute their
respective net investment income to shareowners monthly and capital gains, if
any, are distributed annually. The Money Market Fund declares dividends daily
from its net investment income. The Money Market Fund's dividends are payable
monthly and are automatically reinvested in additional Fund shares, at the
month-end net asset value, for those shareowners that have elected the
reinvestment option.
Net investment income and realized gains and losses for federal income tax
purposes may differ from that reported on the financial statements because of
permanent book and tax basis differences. Permanent book and tax differences
of $1,301, $30,723 and $685 were reclassified from undistributed net
investment income to accumulated net realized gain (loss) on investments in
the Asset Allocation Fund, the Bond Fund and the Balanced Fund, respectively,
due to losses on paydown adjustments from mortgage backed securities.
NOTE (C) CAPITAL SHARE TRANSACTIONS: Each Fund is authorized to issue an
unlimited number of shares of beneficial interest with no par value.
Transactions in shares of beneficial interest for the period ended October 31,
1995 were as follows:
<TABLE>
<CAPTION>
GROWTH FUND GROWTH & INCOME FUND
---------------------- ------------------------------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED
OCTOBER 31, 1995 OCTOBER 31, 1995 OCTOBER 31, 1994
---------------------- ------------------------ ----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------- ----------- ---------- ------------ --------- -----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold............. 3,647,616 $41,552,317 13,916,472 $177,441,408 1,229,599 $12,288,733
Shares issued through
reinvestment of
dividends............. 3,223 37,462 2,987 35,488 421 4,234
Shares redeemed......... (585,197) (6,849,876) (1,781,094) (22,735,056) (17,979) (175,559)
--------- ----------- ---------- ------------ --------- -----------
Net Increase............ 3,065,642 $34,739,903 12,138,365 $154,741,840 1,212,041 $12,117,408
========= =========== ========== ============ ========= ===========
</TABLE>
<TABLE>
<CAPTION>
TALON FUND ASSET ALLOCATION FUND
---------------------------------------- ------------------------
YEAR ENDED PERIOD ENDED PERIOD ENDED
OCTOBER 31, 1995 OCTOBER 31, 1994 OCTOBER 31, 1995
-------------------- ------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------- ---------- ------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold............. 549,448 $5,975,992 424,810 $4,290,201 18,965,446 $158,962,203
Shares issued through
reinvestment of
dividends............. 6,101 66,183 0 0 0 0
Shares redeemed......... (107,228) (1,296,020) 0 0 (830,910) (6,983,104)
-------- ---------- ------- ---------- ---------- ------------
Net Increase............ 448,321 $4,746,155 424,810 $4,290,201 18,134,536 $151,979,099
======== ========== ======= ========== ========== ============
</TABLE>
<TABLE>
<CAPTION>
BALANCED FUND BOND FUND
---------------------- -----------------------------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED
OCTOBER 31, 1995 OCTOBER 31, 1995 OCTOBER 31, 1994
---------------------- ----------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------- ----------- ---------- ----------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold............. 1,891,915 $20,642,834 7,252,380 $71,206,866 1,389,555 $13,723,584
Shares issued through
reinvestment of
dividends............. 19,547 216,825 57,705 565,418 1,687 15,769
Shares redeemed......... (104,087) (1,157,437) (1,580,817) (15,485,249) (30,991) (287,320)
--------- ----------- ---------- ----------- --------- -----------
Net Increase............ 1,807,375 $19,702,222 5,729,268 $56,287,035 1,360,251 $13,452,033
========= =========== ========== =========== ========= ===========
</TABLE>
<TABLE>
<CAPTION>
MUNICIPAL BOND FUND MONEY MARKET FUND
------------------------------------------- ------------------------------------------------------
YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED
OCTOBER 31, 1995 OCTOBER 31, 1994 OCTOBER 31, 1995 OCTOBER 31, 1994
------------------- ---------------------- -------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------- ---------- --------- ----------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold........... 110,913 $1,084,257 1,109,877 $11,067,610 684,248,485 $684,248,485 485,864,274 $485,864,274
Shares issued through
reinvestment of
dividends............ 1,761 17,225 622 6,023 165,085 165,085 247,721 247,721
Shares redeemed....... (47,826) (464,233) (18,894) (183,833) (601,267,487) (601,267,487) (363,207,764) (363,207,764)
------- ---------- --------- ----------- ------------ ------------ ------------ ------------
Net Increase.......... 64,848 $ 637,249 1,091,605 $10,889,800 83,146,083 $ 83,146,083 122,904,231 $122,904,231
======= ========== ========= =========== ============ ============ ============ ============
</TABLE>
42
<PAGE>
CT&T FUNDS -- NOTES TO FINANCIAL STATEMENTS October 31, 1995 (continued)
- - -------------------------------------------------------------------------------
Shares sold during the period ended October 31, 1995, as shown above, include
shares exchanged for the investment holdings of the Equity, Fixed Income,
Balanced and Short-Term Investment Funds of Chicago Title & Trust Company
Investment Trust for Employee Benefit Plans on September 21, 1995.
NOTE (D) INVESTMENT TRANSACTIONS: Aggregate purchases and proceeds from sales
of investment securities (other than short-term investments) for the period
ended October 31, 1995 were:
<TABLE>
<CAPTION>
AGGREGATE PROCEEDS
PURCHASES FROM SALES
------------ -----------
<S> <C> <C>
Growth Fund............................................ $ 37,088,586 $ 6,653,903
Growth & Income Fund................................... 149,869,198 8,864,773
Talon Fund............................................. 17,089,593 13,543,591
Asset Allocation Fund.................................. 141,062,249 1,919,913
Balanced Fund.......................................... 21,903,236 3,106,048
Bond Fund.............................................. 70,831,353 16,113,055
Municipal Bond Fund.................................... 5,372,296 4,559,947
</TABLE>
NOTE (E) ADVISORY, ADMINISTRATION AND DISTRIBUTION SERVICES AGREEMENTS: Under
various Advisory Agreements with the Funds, each Advisor provides investment
advisory services to the Funds. The Funds will pay advisory fees at the
following annual percentage rates of the average daily net assets of each
Fund: 0.80% for the Growth Fund, 0.70% for the Growth & Income Fund, 0.80% for
the Talon Fund, 0.70% for the Asset Allocation Fund, 0.75% for the Balanced
Fund, 0.55% for the Bond Fund, 0.60% for the Municipal Bond Fund, and 0.40%
for the Money Market Fund. These fees are accrued daily and paid monthly. The
Advisors have voluntarily undertaken to reimburse the Growth Fund, the Growth
& Income Fund, the Talon Fund, the Asset Allocation Fund, the Balanced Fund,
the Bond Fund, the Municipal Bond Fund, and the Money Market Fund for
operating expenses which cause total expenses to exceed 1.30%, 1.00%, 1.30%,
1.00%, 1.25%, 0.80%, 0.90% and 0.50%, respectively. Such expense
reimbursements may be terminated at the discretion of the Advisors. For the
period from November 1, 1994, (November 2, 1994 for the Growth Fund and the
Balanced Fund and September 21, 1995 for the Asset Allocation Fund) through
October 31, 1995, the Advisors reimbursed expenses of $108,820 for the Growth
Fund, $127,632 for the Growth & Income Fund, $139,529 for the Talon Fund,
$30,094 for the Asset Allocation Fund, $129,051 for the Balanced Fund,
$165,348 for the Bond Fund, $138,875 for the Municipal Bond Fund, and $292,002
for the Money Market Fund.
Effective November 15, 1993, Fund/Plan Services, Inc. was appointed as the
Funds' Administrator. Under its Administration Agreement with the Funds,
Fund/Plan Services, Inc. provides certain administrative services for which
the Funds pay an annual fee at the following annual percentage rates of the
combined average daily net assets of the Funds: 0.09% of the first $200
million, 0.05% on the next $300 million, and 0.03% in excess of $500 million.
Fund/Plan Services, Inc. also retains a portion of the Funds' custody fees.
Fund/Plan Broker Services, Inc. (the "Distributor") serves as the Funds'
Distributor pursuant to an Underwriting Agreement dated November 15, 1993.
Pursuant to Rule 12b-1 adopted by the Securities and Exchange Commission under
the Act, the Growth Fund, the Growth & Income Fund, the Talon Fund, the Asset
Allocation Fund, the Balanced Fund, the Bond Fund, and the Municipal Bond Fund
have adopted a Plan of Distribution (the "Plan"). The Plan permits the
participating Funds to pay certain expenses associated with the distribution
of their shares. Under
43
<PAGE>
CT&T FUNDS -- NOTES TO FINANCIAL STATEMENTS October 31, 1995 (continued)
- - -------------------------------------------------------------------------------
the Plan, each Fund may pay actual expenses not exceeding, on an annual basis,
0.25% of each participating Fund's average daily net assets.
Certain officers and trustees of the Funds are also officers and directors of
The Chicago Trust Company. The Funds have not compensated its officers or
affiliated trustees. The Company pays each unaffiliated trustee $750 per Board
of Trustees meeting attended and an annual retainer of $1,000.
44
<PAGE>
INDEPENDENT AUDITORS' REPORT
- - -------------------------------------------------------------------------------
The Board of Trustees and Shareowners of CT&T Funds:
We have audited the accompanying statements of assets and liabilities,
including the schedules of investments, of CT&T Funds (comprising,
respectively, Montag & Caldwell Growth Fund, Chicago Trust Growth & Income
Fund, Chicago Trust Talon Fund, Chicago Trust Asset Allocation Fund, Montag &
Caldwell Balanced Fund, Chicago Trust Bond Fund, Chicago Trust Municipal Bond
Fund, and Chicago Trust Money Market Fund) as of October 31, 1995, and the
related statements of operations for the period then ended, and the statements
of changes in net assets and the financial highlights for each of the periods
presented in the two-year period then ended. These financial statements and
financial highlights are the responsibility of CT&T Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of October 31, 1995, by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective Funds constituting the CT&T Funds as of October 31, 1995,
the results of their operations for the period then ended, and the changes in
their net assets and financial highlights for each of the periods presented in
the two-year period then ended, in conformity with generally accepted
accounting principles.
LOGO
Chicago, Illinois
December 8, 1995
45
<PAGE>
TRUSTEES
Leonard F. Amari, Trustee*
Stuart D. Bilton, Chairman
Dorothea C. Gilliam, Trustee
Gregory T. Mutz, Trustee*
Nathan Shapiro, Trustee*
* Unaffiliated Trustees
ADVISORS
The Chicago Trust Company
171 North Clark Street
Chicago, IL 60601-3294
Montag & Caldwell, Inc.
1100 Atlanta Financial Center
3343 Peachtree Road
Atlanta, GA 30326-1450
UNDERWRITER/SHAREHOLDER SERVICES
Fund/Plan Services, Inc.
2 West Elm Street
Conshohocken, PA 19428
OFFICERS
Andrew P. Mayo
President
Kenneth C. Anderson
Vice President and Treasurer
Robert M. Hart
Vice President
Thomas J. Adams, III
Vice President
CUSTODIAN
United Missouri Bank, N.A.
928 Grand Avenue
Kansas City, MO 64141
LEGAL COUNSEL
Gardner, Carton and Douglas
321 North Clark Street
Suite 3400
Chicago, IL 60610
AUDITOR
KPMG Peat Marwick LLP
303 East Wacker Drive
Chicago, IL 60601
46
<PAGE>
CT&T FUNDS -- SHAREOWNERS BENEFITS
- - -------------------------------------------------------------------------------
The CT&T Family of Funds offers a variety of special features and options for
shareowners. If you have not already signed up for these features and wish to
do so, a customer service representative can provide you with the form you
need to access any of our free shareowner options (800-992-8151).
LOW MINIMUM INVESTMENTS
The minimum initial investment and any subsequent investment is $50.
AUTOMATIC DIVIDEND REINVESTMENT
You can compound your investment earnings by reinvesting them automatically.
Monthly or quarterly dividends and annual capital gain distributions are
reinvested free of charge. Or, if you prefer to receive your earnings in cash,
you may elect to receive regular distributions of your dividends and capital
gain payments.
EXCHANGE PRIVILEGES
Should market conditions or your personal investment needs change, you have
the flexibility to move your investments among the CT&T Funds. Transfers
between the Funds are free of charge, and simple to make.
SAVINGS FOR RETIREMENT
Our easy and convenient IRA offers you a selection of mutual funds especially
suitable for your retirement accounts while your assets benefit from tax-
deferred growth.
CHECK WRITING
Free check writing services may be authorized and are available in the Chicago
Trust Money Market Fund. The per check minimum is $500.
AUTOMATIC INVESTMENT
You may elect to make regular investments into your account automatically by
approving electronic funds transfers into your CT&T Fund.
FOR ADDITIONAL INFORMATION ABOUT CT&T FUNDS CALL:
(800) 992-8151
DISTRIBUTED BY:
FUND/PLAN BROKER SERVICES, INC.
2 WEST ELM STREET
CONSHOHOCKEN, PA 19428
This report is submitted for general information of the shareowners of the
Funds. It is not authorized for distribution to prospective investors in the
Funds unless preceded or accompanied by an effective Prospectus which includes
details regarding the Funds' objectives, policies, expenses and other
information.
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