<PAGE>
ANNUAL REPORT
OCTOBER 31, 1996
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
The Chicago Trust Company, Investment Advisor
Montag & Caldwell, Inc., Investment Advisor
(800) 992-8151
<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:
FPS Broker Services, Inc.
3200 Horizon Drive
King of Prussia, PA 19406
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.
<PAGE>
Dear Shareowner,
It is difficult to imagine a better period for our Funds than the last twelve
months (see below). We congratulate our portfolio managers for the outstanding
performance they have achieved over the past year.
<TABLE>
<CAPTION>
RANK AMONG SIMILAR FUNDS TOTAL RETURN (DIVIDENDS
(LIPPER) FOR THE 12 RE-INVESTED) 12 MONTHS
MONTHS ENDED 10/31/96* ENDED 10/31/96*
------------------------ -----------------------
<S> <C> <C>
Montag & Caldwell Growth 18 out of 642 29.9%
Chicago Trust Growth & Income 46 out of 516 27.0
Chicago Trust Talon 11 out of 146 26.5
Montag & Caldwell Balanced 17 out of 267 20.4
Chicago Trust Asset Alloca-
tion 41 out of 176 17.2
Chicago Trust Bond 488 out of 1,487 5.8
</TABLE>
We believe that we have an excellent mix of funds for the serious investor.
Our investment advisors manage assets of more than $14 billion, mainly for
large institutions, and provide the same expertise to our smallest mutual fund
shareowners as to our large pension funds. We know that bull markets in stocks
do not last forever, but with the disciplined processes followed by all of our
managers, we are confident we will be well positioned for whatever fate the
security markets have in store for us.
Thank you for your investment in the Chicago Trust/Montag & Caldwell mutual
funds.
Sincerely,
/s/ Stuart D. Bilton
Stuart D. Bilton
Chairman and Chief Executive Officer
- --------
*Lipper Analytical Services, Inc. (Lipper) is the source of the rankings,
which are based on total return fund performance for the twelve months ended
October 31, 1996 for funds of similar investment objectives. The Lipper
rankings listed include all classes of multiple-class funds. Certain expenses
for all of the ranked Chicago Trust/Montag & Caldwell mutual funds were
subsidized during the ranking period for the twelve months ended October 31,
1996. The Chicago Trust/Montag & Caldwell Funds (CT&T Funds) are no-load
mutual funds distributed by FPS Broker Services, Inc., King of Prussia, PA
19406.
This is not an offer to sell or a solicitation of an offer to buy shares of
any of the Funds described. The performance data quoted represents past
performance and is no guarantee of future performance. Investment return will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost. For more complete information, including
charges and expenses, contact our shareholder servicing group at 800-992-8151
for a prospectus. Please read the prospectus carefully before investing.
<PAGE>
CT&T FUNDS -- MANAGEMENT DISCUSSION AND ANALYSIS OCTOBER 31, 1996
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MONTAG & CALDWELL GROWTH FUND
The Montag & Caldwell Growth Fund did particularly well this past fiscal year.
For the twelve months ending October 31, 1996, the Fund had a total return of
29.9% as compared to a gain of 24.1% for the Standard & Poor's 500 (S&P 500)
Index. During this same period, the Lipper Growth Fund Index returned 16.9%.
The Fund's multinational consumer, healthcare and technology holdings made
particularly strong contributions to the Fund's good results.
In the year ahead we think the stock market can make additional progress as
investors begin to focus on the prospects of steady to lower bond yields and
further moderate gains in corporate profits. While the economic ride along the
way will not be perfect and will most likely be bumpy at times, the Federal
Reserve Board has a great deal of flexibility to guide the economy on a non-
inflationary growth path that can continue to support a favorable fundamental
setting for the stock market. In addition, the world's major foreign economies
are expected to show improved growth in 1997, which should help offset some of
the negative impacts on corporate profits related to a slowdown in the U.S.
economy during its seventh year of expansion. It is estimated that 40-45% of
S&P 500 corporate earnings are currently derived from overseas operations.
In terms of stock selection, we continue to emphasize the shares of global
growth companies in the consumer, healthcare and technology fields. These
companies are well-positioned to benefit from the expansion of global markets
both in the period ahead, when globalization will be particularly beneficial
if the U.S. economy slows, and over the long term as the triumph of capitalism
continues to penetrate more of the world's underdeveloped economies.
MONTAG & CALDWELL GROWTH PERFORMANCE GRAPH
[GRAPH APPEARS HERE]
S&P 500 Index* M&C Growth Fund N Class Lipper Growth Index
-------------- ----------------------- -------------------
11/02/94 $10,000.00 $10,000.00 $10,000.00
1/95 $ 9,968.00 $10,005.00 $ 9,862.00
4/95 $11,047.00 $10,999.00 $10,835.00
7/95 $12,145.00 $12,630.00 $12,228.00
10/95 $12,644.00 $13,186.91 $12,555.00
1/96 $13,911.00 $14,177.72 $13,349.00
4/96 $14,383.00 $15,064.95 $13,963.00
7/96 $14,156.00 $14,874.38 $13,314.00
10/96 $15,690.00 $17,131.12 $14,681.00
*Reinvested dividends are factored into this index.
Past performance is not indicative of future results.
MONTAG & CALDWELL GROWTH FUND
TEN LARGEST HOLDINGS
1. Intel Corp.
2. Seagate Technology, Inc.
3. Procter & Gamble Co.
4. Coca-Cola Co.
5. Microsoft Corp.
6. Merck & Co., Inc.
7. Eli Lilly & Co.
8. Walt Disney Co.
9. Johnson & Johnson
10. Gillette Co.
2
<PAGE>
CT&T FUNDS -- MANAGEMENT DISCUSSION AND ANALYSIS OCTOBER 31, 1996
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CHICAGO TRUST GROWTH & INCOME FUND
The Chicago Trust Growth & Income Fund had outstanding performance during the
fiscal year ended October 31, 1996. The Fund's one year total return was
27.0%, compared to 24.1% for the Standard & Poor's 500 (S&P 500) Index and
21.4% for the Lipper Growth & Income Fund Index.
Despite the deceleration of corporate profits and rising interest rates, the
stock market continued its strong performance during the fiscal year ending
October 31, 1996. Strong new money flows into equity mutual funds continued to
support the market and contributed to its resiliency throughout the past
twelve months. However, growing uncertainty surrounding the investment
environment resulted in increased volatility for both individual issues and
major market sectors during the period. Sectors of the market which
significantly outperformed during the year included capital goods, energy,
finance, and healthcare.
Within an environment of slower growth and increased volatility, we continue
to emphasize quality, growth and consistency in our stock selection process.
While a market correction and/or consolidation of recent gains is certainly
possible, we do not anticipate the emergence of a bear market associated with
an economic recession.
Since inception of the Fund on December 13, 1993 through October 31, 1996, the
cumulative total return was 66.2% compared to a 63.1% return for the S&P 500
Index.
CHICAGO TRUST GROWTH & INCOME PERFORMANCE GRAPH
[GRAPH APPEARS HERE]
S&P 500 Index* Lipper Growth & Income Index Growth & Income Fund
-------------- ---------------------------- --------------------
12/13/93 $10,000 $10,000 $10,000
01/94 $10,343 $10,403 $10,394
04/94 $ 9,778 $ 9,864 $ 9,797
07/94 $10,022 $10,051 $ 9,946
10/94 $10,423 $10,300 $10,173
01/95 $10,326 $10,173 $10,366
04/95 $11,446 $11,100 $11,231
07/95 $12,584 $12,081 $12,327
10/95 $13,100 $12,389 $13,088
01/96 $14,413 $13,526 $14,350
04/96 $14,903 $14,102 $14,983
07/96 $14,667 $13,692 $14,993
10/96 $16,257 $15,040 $16,619
*Reinvested dividends are factored into this index.
Past performance is not indicative of future results.
CHICAGO TRUST GROWTH &
INCOME FUND
TEN LARGEST HOLDINGS
1. Royal Dutch Petroleum Co.--N.Y.
Registered
2. Pfizer, Inc.
3. Illinois Tool Works, Inc.
4. Microsoft Corp.
5. Federal Home Loan Mortgage
Corp.
6. American International Group, Inc.
7. Walgreen Co.
8. Green Tree Financial Corp.
9. Norwest Corp.
10. General ElectricCo.
3
<PAGE>
CT&T FUNDS -- MANAGEMENT DISCUSSION AND ANALYSIS OCTOBER 31, 1996
- -------------------------------------------------------------------------------
CHICAGO TRUST TALON FUND
For the fiscal year ending October 31, 1996, the Chicago Trust Talon Fund had
a total return of 26.5% versus 17.4% for the Standard & Poor's 400 Mid-Cap
Index (S&P 400). From inception on September 19, 1994 through October 31,
1996, the Fund's cumulative total return was 54.2% versus 42.0% for the S&P
400. The Talon Fund is managed on a bottom up basis. If we find great
companies at reasonable prices, we buy them, and when they get over-priced, we
sell them. The price of an individual stock is one of the critical factors in
our investment process. Momentum investing on the part of institutional fund
managers has exaggerated the price movement of stocks both up and down to a
significant extent during the last fiscal year. These investors tend to forget
"price" and our job is quite simple--to buy low and sell high.
CHICAGO TRUST TALON PERFORMANCE GRAPH
[GRAPH APPEARS HERE]
S&P 400 Mid-Cap Index* Talon Fund
---------------------- ----------
9/19/94 10000 10000
10/94 9920 10250
01/95 9659 10151
04/95 10550 10766
07/95 11831 12172
10/95 12024 12189
01/96 12700 12762
04/96 13695 14580
07/96 12747 13530
10/96 14111 15420
*Reinvested dividends are factored into this index.
Past performance is not indicative of future results.
CHICAGO TRUST TALON FUND
TEN LARGEST HOLDINGS
1. U.S. Treasury Note 6.375%, 05/15/99
2. North American Vaccine, Inc.
3. Starbucks Corp.
4. Berg Electronics Corp.
5. Applied Materials, Inc.
6. Gymboree Corp.
7. Revco D.S., Inc.
8. Arbor Drugs, Inc.
9. Ply-Gem Industries, Inc.
10. Risk Capital Holdings, Inc.
4
<PAGE>
CT&T FUNDS -- MANAGEMENT DISCUSSION AND ANALYSIS OCTOBER 31, 1996
- -------------------------------------------------------------------------------
CHICAGO TRUST ASSET ALLOCATION FUND
The fiscal year ending October 31, 1996 was a beneficial one for the Chicago
Trust Asset Allocation Fund. The twelve months total return was 17.2% versus
the Lipper Balanced Fund Index of 14.5%. Common stocks provided the greatest
component of the return. The stock market as measured by the Standard & Poors'
500 (S&P 500) Index was up 24.1% for the period and the Lehman Brothers
Aggregate Index increased 5.9%. The stocks and bonds in your portfolio
outperformed each index. Over the course of the year the allocation remained
in the range of 52-55% for stocks and 37-40% for bonds.
The general stock market's performance has been nothing short of spectacular
over the past two years and is driven by low interest rates, low inflation,
strong corporate profits, stable economic growth and consistent positive flow
of funds into the equity market, especially into 401(k) retirement plans. We
continue to believe the outlook for equity holdings remains positive but we
must use caution and continue to pay close attention to valuation levels on
individual securities. This is no time to "pay-up" for stocks and/or bonds. We
will continue to stress individual company fundamentals, earnings visibility,
reasonable price and liquidity in our investment process.
Equity investments in consumer staples, financial services and technology
enhanced stock performance. The bond portfolio continues to stress quality and
intermediate term maturity investments. We do not believe that taking
unwarranted bond risk at the current time is justified.
CHICAGO TRUST ASSET ALLOCATION PERFORMANCE GRAPH
[GRAPH APPEARS HERE]
Lehman/S&P 500 Index* Asset Allocation Fund Lipper Balanced Index
--------------------- --------------------- ---------------------
09/21/95 $10,000 $10,000 $10,000
10/95 $10,317 $10,108 $10,154
01/96 $11,138 $10,797 $10,826
04/96 $11,173 $10,893 $10,944
07/96 $11,229 $10,927 $10,829
10/96 $12,170 $11,847 $11,625
*Reinvested dividends are factored into this index.
Past performance is not indicative of future results.
CHICAGO TRUST ASSET
ALLOCATION FUND
TEN LARGEST HOLDINGS
1. Gillette Co.
2. Coca-Cola Co.
3. Procter & Gamble Co.
4. General Electric Co.
5. Pfizer, Inc.
6. Walgreen Co.
7. Federal Home Loan Mortgage Corp.
8. Illinois Tool Works, Inc.
9. Microsoft Corp.
10. American International Group, Inc.
5
<PAGE>
CT&T FUNDS -- MANAGEMENT DISCUSSION AND ANALYSIS OCTOBER 31, 1996
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MONTAG & CALDWELL BALANCED FUND
The Montag & Caldwell Balanced Fund achieved a strong gain of 20.4% for the
fiscal year ending October 31, 1996. During this same period, the combined
index of the Standard & Poor's 500 Index and the Lehman Brothers Aggregate
Index increased 15.9%. The Lipper Balanced Fund Index gained 14.5% during the
same interval. The Fund's multinational consumer, healthcare and technology
equity holdings made particularly strong contributions to the Fund's good
results.
In terms of stock selection, we continue to emphasize the shares of global
growth companies in the consumer, healthcare and technology fields. These
companies are well-positioned to benefit from the expansion of global markets
both in the period ahead, when globalization will be particularly beneficial
if the U.S. economy slows, and over the long term as the triumph of capitalism
continues to penetrate more of the world's underdeveloped economies.
With economic growth slowing and inflation well-controlled, we think there is
the potential for positive bond market returns in the period ahead. In
addition to gradually lengthening bond maturities, we will seek to add yield,
where appropriate, through the purchase of quality corporate bonds as well as
agency issues.
MONTAG & CALDWELL BALANCED PERFORMANCE GRAPH
[GRAPH APPEARS HERE]
Lehman/S&P 500 Index* M&C Balanced Fund Lipper Balanced Index
--------------------- ----------------- ---------------------
11/2/94 10000 10000 10000
01/95 10167 10079 9920
04/95 10981 10817 10662
07/95 11853 11944 11435
10/95 12364 12375 11769
01/96 13309 13172 12549
04/96 13451 13446 12685
07/96 13449 13410 12552
10/96 14543 14895 13475
*Reinvested dividends are factored into this index.
Past performance is not indicative of future results.
MONTAG & CALDWELL BALANCED FUND
TEN LARGEST HOLDINGS
1. U.S. Treasury Note 6.375%,
08/15/02
2. Intel Corp.
3. U.S. Treasury Note 7.250%,
05/15/04
4. Seagate Technology, Inc.
5. Procter & Gamble Co.
6. Coca-Cola Co.
7. Gillette Co.
8. Microsoft Corp.
9. Cisco Systems, Inc.
10. Merck & Co., Inc.
6
<PAGE>
CT&T FUNDS -- MANAGEMENT DISCUSSION AND ANALYSIS OCTOBER 31, 1996
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CHICAGO TRUST BOND FUND
Bond market performance over the last year has been influenced by a division
of consensus on the economy. For the first quarter of the fiscal year,
interest rates remained fairly stable. In February, rates began a steady rise
through October. Traditional measures of economic activity such as lower
levels of unemployment, accelerating job growth and higher rates of capacity
utilization historically have raised inflation fears. At the same time,
improvements in productivity, technological changes and increasing global
competition have alleviated concerns of a higher inflation rate. The Federal
Reserve Board has remained on the sidelines for most of the year preferring to
let market forces determine the outcome for interest rates.
For the fiscal year ending October 31, 1996, the Fund had a total return of
5.8% (net of expenses). The Fund compares its performance to both the Lehman
Brothers (Lehman) Aggregate Index with a total return of 5.9% and the Lipper
Intermediate Investment Grade Index with a total return of 5.3%. Both Lehman
and Lipper Analytical Services are recognized in the industry as independent
sources of bond market performance. The Lehman Aggregate Index is a
representative basket of investment grade bonds that mature between one and
thirty years. Lehman measures the total return of these investments on a daily
basis. The index performance is calculated before expenses. Lipper measures
performance the same way except all returns are net of expenses. The Lipper
index is comprised primarily of corporate bonds maturing between one and ten
years.
The Fund continues to emphasize corporates and mortgages which represent 76%
of total assets. We believe that superior returns are achieved from the
results of independent, fundamental security analysis combined with the
rigorous application of a precise, disciplined portfolio construction process.
Rather than attempting to time the market, we firmly believe in adding value
through sector analysis, credit quality research and security structure
analysis. We believe our focus on long term intrinsic value captures yield
without increasing portfolio risk.
Throughout the year, as investors dismissed the prospects of a recession,
corporate bond spreads continued to grind tighter resulting in strong relative
performance for this sector. The Chicago Trust Bond Fund focuses on selecting
corporate obligations that will enhance the Fund's overall return while
maintaining a strict adherence to required risk parameters. Both asset backed
and mortgage bonds can also provide investors with strong relative returns.
Prepayment risk is analyzed under numerous interest rate scenarios to evaluate
sensitivity to changes in rates. Government bonds are used to capture risk
neutral anomalies based on the slope of the yield curve.
The Fund's portfolio duration changes are made based on our 12 to 18 month
outlook for bond returns. We are not market timers. Duration changes are
constrained to a range of +10% or -10% of the duration of the Lehman Aggregate
Index. We will also adjust the distribution of our portfolio maturity and
duration based on the current slope of the yield curve to capture incremental
return and to control systematic risk. Over the last year the Fund's effective
duration has ranged from a high of 4.9 years to a low of 4.3 years. Currently
the effective portfolio duration is 4.3 years.
7
<PAGE>
CHICAGO TRUST BOND FUND PERFORMANCE GRAPH
[GRAPH APPEARS HERE]
Lipper Intermediate Investment
Lehman Aggr. Bond Index* Bond Fund Grade Index
------------------------ --------- ------------------------------
12/31/93 $10,000 $10,000 $10,000
01/94 $10,186 $10,147 $10,157
04/94 $ 9,837 $ 9,682 $ 9,673
07/94 $10,175 $ 9,768 $ 9,791
10/94 $10,159 $ 9,677 $ 9,687
01/95 $10,556 $ 9,894 $ 9,872
04/95 $11,148 $10,307 $10,280
07/95 $11,739 $10,735 $10,685
10/95 $12,251 11117.2 $11,055
01/96 $12,792 11507.11 $11,444
04/96 $12,574 11168.81 $11,101
07/96 $12,866 11330.96 $11,263
10/96 $13,433 11757.56 $11,645
*Reinvested dividends are factored into this index. This index is an unmanaged
statistical composite and does not reflect any expenses that would be applicable
to an actively managed portfolio, such as that of the Fund.
Past performance is not indicative of future results.
CHICAGO TRUST BOND FUND
TEN LARGEST HOLDINGS
1. Government National Mortgage Association 7.000%, 10/15/23
2. Government National Mortgage Association 7.500%, 04/15/23
3. U.S. Treasury Note 5.625%, 01/31/98
4. U.S. Treasury Note 5.125%, 11/30/98
5. Federal Home Loan Mortgage Corp. 6.500%, 01/01/11
6. Federal Home Loan Mortgage Corp. 6.500%, 06/01/09
7. Hilton Hotels, Inc. Notes 7.700%, 07/15/02
8. Federal Home Loan Mortgage Corp. CMO REMIC 7.000%, 10/15/06
9. Federal National Mortgage Association CMO REMIC 6.000%, 06/25/02
10. Federal Home Loan Mortgage Corp. CMO REMIC 6.000%, 03/15/07
8
<PAGE>
CT&T FUNDS -- MANAGEMENT DISCUSSION AND ANALYSIS OCTOBER 31, 1996
- -------------------------------------------------------------------------------
CHICAGO TRUST MUNICIPAL BOND FUND
While the equity market continued its strong performance during the fiscal
year ending October 31, 1996, the bond markets experienced more of a "coupon
collecting" year rather than one of stellar total returns. The municipal bond
market has come full circle vis-a-vis its performance versus Treasuries. At
October 31, 1995, municipal bonds were cheap, yielding 80-90% of Treasuries
largely due to shocks to the market such as the Orange County, California
bankruptcy and possible tax reform. During most of fiscal 1996, however, the
situation reversed itself and municipals outperformed taxables due to lower
new issue supply and subsiding fear of large tax cuts. By fiscal year ending
1996 though, municipal bonds were again yielding over 85% of Treasuries, with
heavy new issue supply muting tax-exempt bond performance. The Treasury market
was off to the races with the long bond dipping below 6.5%, while municipals
lagged behind. However, current rates are not significantly different from
those on October 31, 1995, with October 31, 1996 yields on 5 year AA General
Obligation bonds at 4.5%, 10 year maturities at 5.0%, and 30 years at 5.7%.
In the Chicago Trust Municipal Bond Fund, we began the fiscal year positioned
a bit longer than our benchmark anticipating an end to the tax-exempt market's
underperformance versus taxables. Throughout the year we intentionally sold
some of our longer bonds to realize gains, reinvest in higher coupons, and
shorten the portfolio to a more neutral average maturity position of 5.5 years
versus over 6 years at October 31, 1996. The portfolio's overall quality has
been maintained at AA, with an approximate 3% cash position and 97% of the
Fund invested in tax-exempt bonds. Total return for the fiscal year ending
October 31, 1996 was 3.6% and 11.0% since inception on December 13, 1993.
CHICAGO TRUST MUNICIPAL BOND PERFORMANCE GRAPH
[GRAPH APPEARS HERE]
Lehman 5 YR G.O.* Municipal Bond Fund
----------------- -------------------
12/31/93 $10,000 $10,000
01/94 $10,186 $10,106
04/94 $ 9,837 $ 9,803
07/94 $10,175 $ 9,922
10/94 $10,159 $ 9,808
01/95 $10,556 $ 9,958
04/95 $11,148 $10,218
07/95 $11,739 $10,518
10/95 $12,251 $10,719
01/96 $12,792 $10,969
04/96 $12,574 $10,811
07/96 $12,866 $10,935
10/96 $13,433 $11,104
*Reinvested dividends are factored into this index. This index is an unmanaged
statistical composite and does not reflect any expenses that would be applicable
to an actively managed portfolio, such as that of the Fund.
Past performance is not indicative of future results.
CHICAGO TRUST MUNICIPAL BOND FUND
TEN LARGEST HOLDINGS
1. King County, Washington, Series A, G.O. 5.800%, 01/01/04
2. Jordan School District, Series A, G.O. 5.250%, 06/15/00
3. Cook County, Illinois Series B, G.O., MBIA Insured 4.700%, 11/15/01
4. State of Nevada, Water Pollution Control, Revolving Funding, G.O. 4.100%,
11/01/98
5. Salt River Project Electric System Revenue, Refunding Series A, 5.500%,
01/01/05
6. Texas Water Development Board, G.O., Escrowed to Maturity 5.000%, 08/01/99
7. Commonwealth of Puerto Rico, Series A, G.O., MBIA Insured 6.500%, 07/01/03
8. Arlington Independent School District, Refunding, G.O. 5.400%, 02/15/99
9. Clark County, Nevada School District, G.O., FGIC Insured 6.400%, 06/15/06
10. Tulsa, Oklahoma Metropolitan Utilities Authority Revenue 5.500%, 07/01/00
9
<PAGE>
CT&T FUNDS -- MANAGEMENT DISCUSSION AND ANALYSIS OCTOBER 31, 1996
- -------------------------------------------------------------------------------
CHICAGO TRUST MONEY MARKET FUND
While market sentiment regarding the future direction of short-term interest
rates fluctuated a bit this past fiscal year, the actual level of short rates
was fairly consistent. During the past fiscal year, the Federal Reserve Board
(Fed) adjusted their Funds rate once--that coming in late January. After this
25 basis points cut (1 basis point is 1/100 of 1%), market perception turned
rather bearish (an expectation that interest rates will rise). This past
summer many "experts" were speculating on a Fed Funds interest rate increase
of as much as 50 basis points. Focus turned from the Federal Reserve Board to
Washington this fall, and concurrently pressures for a short-term interest
rate increase waned.
Throughout the past year, the Chicago Trust Money Market Fund has provided
strong performance relative to its benchmark, the Donoghue's First Tier Index.
As of October 31, 1996, the Fund's 30-day yield was 4.9% versus an index yield
of 4.8%. This performance has been accomplished while maintaining a shorter
average maturity (33 days versus 62 for the index as of October 31, 1996). We
have beaten the benchmark yield by averages of 19, 22, 17, and 16 basis
points, respectively, for the past four fiscal quarters.
We are continually evaluating short-term securities from both a credit as well
as a valuation perspective. Diversification and asset allocation are tools we
actively use to enhance your yield, but the cornerstones of our investment
process remain the same--safety and liquidity of your principal.
10
<PAGE>
CT&T FUNDS
MONTAG & CALDWELL GROWTH FUND
SCHEDULE OF INVESTMENTS OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCK - 95.55%
COMMERCIAL SERVICES - 2.53%
Manpower, Inc. ....................................... 195,000 $ 5,533,125
------------
COMPUTERS/OFFICE EQUIPMENT - 27.52%
Adaptec, Inc.*........................................ 74,500 4,535,187
Cisco Systems, Inc.*.................................. 103,000 6,373,125
Electronic Arts, Inc.*................................ 121,300 4,548,750
Electronic Data Systems Corp. ........................ 133,400 6,003,000
Intel Corp. .......................................... 90,000 9,888,750
Microsoft Corp.*...................................... 55,000 7,548,750
Oracle Systems Corp.*................................. 147,000 6,219,938
Seagate Technology, Inc.* ............................ 135,100 9,017,925
Solectron Corp.*...................................... 113,000 6,045,500
------------
60,180,925
------------
CONSUMER DURABLES - 1.48%
Harley Davidson, Inc. ................................ 71,900 3,244,488
------------
CONSUMER NON-DURABLES - 12.74%
CUC International, Inc.*.............................. 156,150 3,825,675
Gillette Co. ......................................... 87,900 6,570,525
Interpublic Group of Companies, Inc. ................. 87,000 4,219,500
Mattel, Inc. ......................................... 160,000 4,620,000
Procter & Gamble Co. ................................. 87,000 8,613,000
------------
27,848,700
------------
ELECTRICAL EQUIPMENT - 2.14%
Duracell International, Inc. ......................... 70,000 4,672,500
------------
ENTERTAINMENT & LEISURE - 3.06%
Walt Disney Co. ...................................... 101,700 6,699,488
------------
FINANCIAL SERVICES - 6.77%
American Express Co. ................................. 136,100 6,396,700
Federal National Mortgage Association ................ 118,300 4,628,487
First Data Corp. ..................................... 47,400 3,780,150
------------
14,805,337
------------
FOOD & BEVERAGE - 11.79%
Coca-Cola Co. ........................................ 154,900 7,822,450
McDonald's Corp. ..................................... 110,000 4,881,250
Pioneer Hi-Bred International, Inc. .................. 64,700 4,342,987
Sysco Corp. .......................................... 140,000 4,760,000
Wrigley, Wm. Jr., Co. ................................ 66,100 3,982,525
------------
25,789,212
------------
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
CT&T FUNDS
MONTAG & CALDWELL GROWTH FUND
SCHEDULE OF INVESTMENTS - CONTINUED OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCK--CONTINUED
HEALTH CARE - 3.06%
Johnson & Johnson ................................. 136,000 $ 6,698,000
------------
LODGING - 1.53%
Marriott International, Inc. ...................... 58,700 3,338,562
------------
MEDICAL SUPPLIES - 2.94%
Medtronic, Inc. ................................... 99,800 6,424,625
------------
PHARMACEUTICALS - 9.23%
Eli Lilly & Co. ................................... 96,100 6,775,050
Merck & Co., Inc. ................................. 92,200 6,834,325
Pfizer, Inc. ...................................... 79,300 6,562,075
------------
20,171,450
------------
RESTAURANTS - 1.35%
Cracker Barrel Old Country Store, Inc. ............ 145,000 2,954,375
------------
RETAIL - 4.81%
Home Depot, Inc. .................................. 112,500 6,159,375
The Gap, Inc. ..................................... 150,000 4,350,000
------------
10,509,375
------------
TELECOMMUNICATIONS EQUIPMENT - 4.60%
Ericsson (LM) Telefonaktiebolaget ADR ............. 159,300 4,400,663
U.S. Robotics, Corp. .............................. 90,000 5,658,750
------------
10,059,413
------------
TOTAL COMMON STOCK (COST $176,216,289)............. 208,929,575
------------
MONEY MARKET FUND - 1.75% (COST $3,819,306)
Fidelity U.S. Government Reserves.................. 3,819,306 3,819,306
------------
<CAPTION>
PRINCIPAL
AMOUNT
-----------
<S> <C> <C>
REPURCHASE AGREEMENT - 2.95% (COST $6,446,000)
United Missouri Bank, U.S. Treasury Notes,
$6,521,000 par, 5.125% coupon, due 06/30/98, dated
10/31/96, to be sold on 11/01/96 at $6,446,958.... $ 6,446,000 6,446,000
------------
TOTAL INVESTMENTS - 100.25% (COST $186,481,595)/1/. 219,194,881
------------
LIABILITIES NET OF CASH AND OTHER ASSETS - (0.25%). (544,986)
------------
NET ASSETS - 100.00%............................... $218,649,895
============
/1/Aggregate cost for federal income tax purposes
is $186,489,005; and net unrealized appreciation
is as follows:
Gross unrealized appreciation..................... $35,214,277
Gross unrealized depreciation..................... (2,508,401)
-----------
Net unrealized appreciation...................... $32,705,876
===========
</TABLE>
* Non-income producing security.
See accompanying notes to financial statements.
12
<PAGE>
CT&T FUNDS
CHICAGO TRUST GROWTH & INCOME FUND
SCHEDULE OF INVESTMENTS OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------- ------------
<S> <C> <C>
COMMON STOCK - 93.55%
CHEMICALS - 1.99%
Praxair, Inc. ............................................. 92,400 $ 4,088,700
------------
COMPUTERS/OFFICE EQUIPMENT - 9.33%
Cisco Systems, Inc.*....................................... 60,400 3,737,250
Computer Sciences Corp.*................................... 58,600 4,351,050
Electronic Data Systems Corp. ............................. 75,500 3,397,500
Microsoft Corp.*........................................... 55,700 7,644,825
------------
19,130,625
------------
CONSUMER DURABLES - 2.78%
Harley Davidson, Inc. ..................................... 126,600 5,712,825
------------
CONSUMER NON-DURABLES - 12.06%
Cintas Corp................................................ 20,000 1,165,000
Gillette Co. .............................................. 84,400 6,308,900
Mattel, Inc. .............................................. 155,000 4,475,625
Newell Co. ................................................ 234,100 6,642,588
Procter & Gamble Co. ...................................... 62,000 6,138,000
------------
24,730,113
------------
ELECTRICAL/ELECTRONICS - 3.27%
General Electric Co. ...................................... 69,400 6,714,450
------------
ENERGY - 6.94%
Exxon Corp. ............................................... 66,400 5,884,700
Royal Dutch Petroleum Co. - NY Registered* ................ 50,500 8,351,437
------------
14,236,137
------------
ENTERTAINMENT & LEISURE - 2.07%
Carnival Corp. CL A ....................................... 141,000 4,247,625
------------
FINANCIAL SERVICES - 13.04%
Federal Home Loan Mortgage Corp. .......................... 74,850 7,559,850
First Data Corp. .......................................... 28,000 2,233,000
Green Tree Financial Corp. ................................ 181,000 7,172,125
MBNA Corp. ................................................ 70,350 2,655,713
Norwest Corp. ............................................. 162,600 7,134,075
------------
26,754,763
------------
FOOD & BEVERAGE - 5.50%
Coca-Cola Co. ............................................. 100,400 5,070,200
Richfood Holdings, Inc..................................... 64,500 1,556,062
Sysco Corp. ............................................... 137,000 4,658,000
------------
11,284,262
------------
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
CT&T FUNDS
CHICAGO TRUST GROWTH & INCOME FUND
SCHEDULE OF INVESTMENTS - CONTINUED OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------- ------------
<S> <C> <C>
COMMON STOCK - CONTINUED
HEALTH CARE - 3.58%
Cardinal Health, Inc. ..................................... 31,000 $ 2,433,500
Health Management Associates, Inc. CL A*................... 143,250 3,151,500
PacifiCare Health Systems, Inc. CL B*...................... 25,000 1,756,250
------------
7,341,250
------------
INSURANCE - 5.50%
American International Group, Inc. ........................ 68,650 7,457,106
General Re Corp. .......................................... 25,950 3,821,138
------------
11,278,244
------------
MANUFACTURING - 7.67%
Federal Signal Corp. ...................................... 115,000 2,961,250
Illinois Tool Works, Inc. ................................. 114,000 8,008,500
Pall Corp. ................................................ 186,000 4,766,250
------------
15,736,000
------------
PAPER/WOOD PRODUCTS - 2.79%
Kimberly Clark Corp. ...................................... 61,400 5,725,550
------------
PHARMACEUTICALS - 6.04%
Merck & Co., Inc. ......................................... 57,000 4,225,125
Pfizer, Inc. .............................................. 98,800 8,175,700
------------
12,400,825
------------
RETAIL - 3.61%
Walgreen Co. .............................................. 196,000 7,399,000
------------
SCIENTIFIC & TECHNOLOGICAL INSTRUMENTS - 3.00%
Raytheon Co. .............................................. 125,000 6,156,250
------------
SERVICE - 2.69%
Service Corp. International................................ 193,500 5,514,750
------------
TELECOMMUNICATIONS EQUIPMENT - 1.69%
U.S. Robotics, Corp. ...................................... 55,000 3,458,125
------------
TOTAL COMMON STOCK (COST $148,289,691)..................... 191,909,494
------------
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
CT&T FUNDS
CHICAGO TRUST GROWTH & INCOME FUND
SCHEDULE OF INVESTMENTS - CONTINUED OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
----------- ------------
<S> <C> <C>
REPURCHASE AGREEMENT - 7.81% (COST $16,023,000)
J.P. Morgan, U.S. Treasury Notes, $16,083,000 par,
6.250% coupon, due 8/31/00, dated 10/31/96, to be
sold on 11/01/96 at $16,025,515................... $16,023,000 $ 16,023,000
------------
TOTAL INVESTMENTS - 101.36% (COST $164,312,691)/1/. 207,932,494
------------
LIABILITIES NET OF CASH AND OTHER ASSETS - (1.36%). (2,799,177)
------------
NET ASSETS - 100.00%............................... $205,133,317
============
/1/Aggregate cost for federal income tax purposes
is $164,312,691; and net unrealized appreciation
is as follows:
Gross unrealized appreciation..................... $44,406,208
Gross unrealized depreciation..................... (786,405)
-----------
Net unrealized appreciation...................... $43,619,803
===========
</TABLE>
*Non-income producing security.
See accompanying notes to financial statements.
15
<PAGE>
CT&T FUNDS
CHICAGO TRUST TALON FUND
SCHEDULE OF INVESTMENTS OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
---------- -----------
<S> <C> <C>
COMMON STOCK - 73.40%
APPAREL - 4.49%
Gymboree Corp.*......................................... 25,000 $ 781,250
-----------
BIOTECHNOLOGY - 6.58%
Immune Response Corp.*.................................. 20,000 145,000
North American Vaccine, Inc.*........................... 45,000 1,001,250
-----------
1,146,250
-----------
BUILDING MATERIALS - 3.88%
Ply-Gem Industries, Inc. ............................... 55,200 676,200
-----------
CABLE TELEVISION - 0.11%
Tescorp, Inc. .......................................... 4,902 19,239
-----------
ELECTRICAL/ELECTRONICS - 4.87%
Berg Electronics Corp.*................................. 30,000 847,500
-----------
FINANCIAL SERVICES - 6.37%
Data Broadcasting Corp.* ............................... 60,000 450,000
St. Paul Bancorp, Inc. ................................. 25,000 659,375
-----------
1,109,375
-----------
HEALTH CARE & EQUIPMENT - 4.39%
Cardinal Health, Inc. .................................. 6,505 510,642
Cerner Corp.*........................................... 21,000 254,625
-----------
765,267
-----------
HOMEBUILDING - 1.82%
Falcon Building Products, Inc. CL A*.................... 27,000 317,250
-----------
INDUSTRIAL MATERIALS - 2.71%
W.H. Brady Co. CL A..................................... 20,000 472,500
-----------
INSURANCE - 5.53%
Danielson Holdings Corp.* .............................. 56,500 296,625
Risk Capital Holdings, Inc.* ........................... 37,000 666,000
-----------
962,625
-----------
OIL FIELD SERVICES/EQUIPMENT - 2.21%
Cliffs Drilling Co.*.................................... 9,000 385,875
-----------
PHARMACEUTICALS - 2.23%
Elan Corp., PLC *....................................... 14,000 388,500
-----------
RESTAURANTS - 2.80%
Daka International, Inc.* .............................. 55,000 488,125
-----------
RETAILING-DRUG STORE - 8.48%
Arbor Drugs, Inc. ...................................... 32,000 724,000
Revco D.S., Inc.* ...................................... 25,000 753,125
-----------
1,477,125
-----------
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
CT&T FUNDS
CHICAGO TRUST TALON FUND
SCHEDULE OF INVESTMENTS - CONTINUED OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
---------- -----------
<S> <C> <C>
COMMON STOCK - CONTINUED
RETAILING-SPECIALTY - 5.41%
Starbucks Corp.* ..................................... 29,000 $ 942,500
-----------
SCIENTIFIC & TECH INSTRUMENTS - 3.16%
Robotic Vision Systems, Inc.* ........................ 55,000 550,000
-----------
TECHNOLOGY - 4.86%
Applied Materials, Inc.* ............................. 32,000 846,000
-----------
TELECOMMUNICATIONS-LONG DISTANCE - 3.50%
WorldCom, Inc.* ...................................... 25,000 609,375
-----------
TOTAL COMMON STOCK (COST $10,361,811)................. 12,784,956
-----------
PREFERRED STOCK - 2.14% (COST $300,000)
Tescorp., Inc. 8.000%, Conv. Pfd...................... 3,000 372,000
-----------
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
REPURCHASE AGREEMENT - 2.91% (COST $507,000)
United Missouri Bank, U.S. Treasury Notes, $513,000
par, 5.125% coupon, due 06/30/98, dated 10/31/96, to
be sold on 11/01/96 at $507,075...................... $ 507,000 507,000
-----------
U.S. GOVERNMENT OBLIGATIONS - 19.96%
U.S. TREASURY BILLS - 14.15%
4.950%, 01/09/97...................................... 1,500,000 1,485,475
5.190%, 04/03/97...................................... 1,000,000 978,226
-----------
2,463,701
-----------
U.S. TREASURY NOTES - 5.81%
6.375%, 05/15/99...................................... 1,000,000 1,012,180
-----------
TOTAL U.S. GOVERNMENT OBLIGATIONS (COST $3,461,124)... 3,475,881
-----------
U.S. GOVERNMENT AGENCY OBLIGATION - 1.86% (COST
$324,263)
FEDERAL HOME LOAN BANK
4.407%, 01/21/97...................................... 325,000 324,490
-----------
TOTAL INVESTMENTS - 100.27% (COST $14,954,198)/1/..... 17,464,327
-----------
LIABILITIES NET OF CASH AND OTHER ASSETS - (0.27%).... (46,652)
-----------
NET ASSETS - 100.00%.................................. $17,417,675
===========
/1/Aggregate cost for federal income tax purposes is
$14,954,198; and net unrealized appreciation is as
follows:
Gross unrealized appreciation........................ $2,848,479
Gross unrealized depreciation........................ (338,350)
----------
Net unrealized appreciation......................... $2,510,129
==========
</TABLE>
*Non-income producing security.
See accompanying notes to financial statements.
17
<PAGE>
CT&T FUNDS
CHICAGO TRUST ASSET ALLOCATION FUND
SCHEDULE OF INVESTMENTS OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ -----------
<S> <C> <C>
COMMON STOCK - 55.17%
CHEMICALS - 1.13%
Praxair, Inc. .............................................. 40,000 $ 1,770,000
-----------
COMPUTERS/OFFICE EQUIPMENT - 5.64%
Cisco Systems, Inc.* ....................................... 40,000 2,475,000
Computer Sciences Corp.* ................................... 25,000 1,856,250
Hewlett-Packard Co. ........................................ 40,000 1,765,000
Microsoft Corp.* ........................................... 20,000 2,745,000
-----------
8,841,250
-----------
CONSUMER DURABLES - 1.58%
Harley Davidson, Inc. ...................................... 55,000 2,481,875
-----------
CONSUMER NON-DURABLES - 7.59%
CUC International, Inc.* ................................... 60,000 1,470,000
Gillette Co. ............................................... 50,000 3,737,500
Mattel, Inc. ............................................... 55,000 1,588,125
Newell Co. ................................................. 75,000 2,128,125
Procter & Gamble Co. ....................................... 30,000 2,970,000
-----------
11,893,750
-----------
ELECTRICAL/ELECTRONICS - 3.00%
General Electric Co. ....................................... 30,000 2,902,500
Molex, Inc. ................................................ 50,000 1,800,000
-----------
4,702,500
-----------
ENERGY - 5.82%
Amoco Corp. ................................................ 30,000 2,272,500
Exxon Corp. ................................................ 25,000 2,215,625
Royal Dutch Petroleum Co. - NY Registered*.................. 13,000 2,149,875
Schlumberger, Ltd. ......................................... 25,000 2,478,125
-----------
9,116,125
-----------
ENTERTAINMENT & LEISURE - 1.35%
Carnival Corp. ............................................. 70,000 2,108,750
-----------
FINANCIAL SERVICES - 7.77%
Federal Home Loan Mortgage Corp. ........................... 28,000 2,828,000
First Data Corp. ........................................... 25,000 1,993,750
Green Tree Financial Corp. ................................. 55,000 2,179,375
MBNA Corp. ................................................. 67,500 2,548,125
Norwest Corp. .............................................. 60,000 2,632,500
-----------
12,181,750
-----------
</TABLE>
See accompanying notes to financial statements.
18
<PAGE>
CT&T FUNDS
CHICAGO TRUST ASSET ALLOCATION FUND
SCHEDULE OF INVESTMENTS - CONTINUED OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------------
<S> <C> <C>
COMMON STOCK - CONTINUED
FOOD & BEVERAGE - 4.20%
Coca-Cola Co. .............................................. 60,000 $ 3,030,000
Lancaster Colony Corp. ..................................... 45,000 1,687,500
Sysco Corp. ................................................ 55,000 1,870,000
------------
6,587,500
------------
INSURANCE - 3.14%
American International Group, Inc. ......................... 25,000 2,715,625
General Re Corp. ........................................... 15,000 2,208,750
------------
4,924,375
------------
MANUFACTURING - 5.23%
Boeing Co. ................................................. 20,000 1,907,500
Federal Signal Corp......................................... 75,000 1,931,250
Illinois Tool Works, Inc. .................................. 40,000 2,810,000
Pall Corp. ................................................. 60,000 1,537,500
------------
8,186,250
------------
MEDICAL SUPPLIES - 1.23%
Medtronic, Inc. ............................................ 30,000 1,931,250
------------
PHARMACEUTICALS - 4.56%
Abbott Laboratories......................................... 40,000 2,025,000
Merck & Co., Inc. .......................................... 30,000 2,223,750
Pfizer, Inc. ............................................... 35,000 2,896,250
------------
7,145,000
------------
RETAIL - 1.81%
Walgreen Co. ............................................... 75,000 2,831,250
------------
TELECOMMUNICATION SERVICES - 1.12%
AT&T Corp. ................................................. 35,000 1,220,625
Lucent Technologies, Inc.................................... 11,342 533,074
------------
1,753,699
------------
TOTAL COMMON STOCK (COST $68,404,875)....................... 86,455,324
------------
</TABLE>
See accompanying notes to financial statements.
19
<PAGE>
CT&T FUNDS
CHICAGO TRUST ASSET ALLOCATION FUND
SCHEDULE OF INVESTMENTS - CONTINUED OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
----------- ------------
<S> <C> <C>
REPURCHASE AGREEMENT - 5.65% (COST $8,854,000)
J.P. Morgan, U.S. Treasury Bills, $8,964,000 par,
5.625% coupon, due 11/30/00, dated 10/31/96, to be
sold on 11/01/96 at $8,855,390...................... $ 8,854,000 $ 8,854,000
------------
FIXED INCOME SECURITIES - 39.27%
U.S. GOVERNMENT OBLIGATIONS - 5.83%
U.S. TREASURY NOTES - 5.16%
4.375%, 11/15/96..................................... 500,000 499,880
5.625%, 08/31/97..................................... 1,000,000 1,001,000
8.750%, 10/15/97..................................... 1,000,000 1,029,900
9.000%, 05/15/98..................................... 1,000,000 1,048,970
8.000%, 08/15/99..................................... 1,000,000 1,053,400
6.375%, 01/15/00..................................... 1,000,000 1,013,570
5.250%, 01/31/01..................................... 1,500,000 1,460,370
5.875%, 02/15/04..................................... 1,000,000 978,200
------------
8,085,290
------------
U.S. TREASURY BONDS - 0.67%
7.125%, 02/15/23..................................... 1,000,000 1,046,970
------------
TOTAL U.S. GOVERNMENT OBLIGATIONS (COST $9,139,613).. 9,132,260
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 15.27%
FEDERAL HOME LOAN BANK - 0.33%
9.200%, 08/25/97..................................... 500,000 514,220
------------
FEDERAL HOME LOAN MORTGAGE CORP. - 5.32%
5.500%, 08/15/04, CMO REMIC.......................... 600,000 593,688
5.850%, 02/21/06..................................... 1,000,000 949,680
6.500%, 09/15/07, CMO REMIC.......................... 1,000,000 998,717
7.500%, 04/01/08..................................... 658,404 669,944
6.500%, 06/01/09..................................... 1,209,678 1,194,301
7.500%, 11/01/10..................................... 1,165,602 1,186,517
5.150%, 11/15/12, CMO REMIC.......................... 1,128,291 1,120,252
7.000%, 07/01/13..................................... 680,404 671,961
7.000%, 11/15/13, CMO PAC--Interest Only............. 1,848,197 97,271
6.000%, 12/15/23, CMO REMIC.......................... 1,000,000 859,812
------------
8,342,143
------------
</TABLE>
See accompanying notes to financial statements.
20
<PAGE>
CT&T FUNDS
CHICAGO TRUST ASSET ALLOCATION FUND
SCHEDULE OF INVESTMENTS - CONTINUED OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
----------- ------------
<S> <C> <C>
FIXED INCOME SECURITIES - CONTINUED
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 2.90%
6.000%, 06/25/02, CMO REMIC........................... $ 1,800,000 $ 1,796,807
6.250%, 07/25/02, CMO REMIC........................... 884,992 884,169
6.900%, 12/25/03, CMO REMIC........................... 901,763 913,982
7.000%, 07/25/17, CMO PAC--Interest Only ............. 1,519,792 159,457
9.000%, 05/01/25...................................... 748,836 786,592
------------
4,541,007
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 6.72%
7.000%, 06/15/08...................................... 612,129 615,270
8.000%, 03/15/17...................................... 777,215 794,084
8.000%, 06/15/17...................................... 1,125,986 1,150,632
7.500%, 04/15/23...................................... 2,271,172 2,279,561
7.000%, 09/15/23...................................... 1,818,304 1,789,213
7.000%, 10/15/23...................................... 2,530,484 2,483,829
6.500%, 03/15/26...................................... 1,483,925 1,420,394
------------
10,532,983
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST
$23,987,489)......................................... 23,930,353
------------
GOVERNMENT TRUST CERTIFICATES - 0.91%
GTC Greece, 8.000%, 05/15/98--Class G-2............... 347,275 347,709
GTC Israel, 9.250%, 11/15/01--Class 1-C............... 1,000,000 1,073,750
------------
TOTAL GOVERNMENT TRUST CERTIFICATES (COST $1,445,800). 1,421,459
------------
ASSET BACKED NOTES - 0.62% (COST $971,976)
Chemical Master Credit Card Trust, Class A, 5.550%,
09/15/03............................................. 1,000,000 973,926
------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 0.40% (COST
$605,906)
Midland Realty Acceptance Corp., 7.475%, 08/25/28..... 600,000 620,062
------------
CORPORATE BONDS, NOTES AND DEBENTURES - 16.24%
AIRLINES - 0.31%
Delta Airlines, Inc. Equipment Trust Bonds, 8.540%,
01/02/07............................................. 452,212 488,218
------------
CONSUMER NON-DURABLES - 0.26%
Philip Morris Cos., Inc. Notes, 7.125%, 10/01/04...... 400,000 404,000
------------
ENTERTAINMENT - 0.32%
Time Warner, Inc. - 144A Preferred Stock/Sinking Fund,
10.250%, 07/01/16.................................... 471,000 498,082
------------
EQUIPMENT - 0.70%
John Deere Capital Corp. Subordinated Debentures,
8.625%, 08/01/19..................................... 1,000,000 1,100,000
------------
</TABLE>
See accompanying notes to financial statements.
21
<PAGE>
CT&T FUNDS
CHICAGO TRUST ASSET ALLOCATION FUND
SCHEDULE OF INVESTMENTS - CONTINUED OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
----------- ------------
<S> <C> <C>
FIXED INCOME SECURITIES - CONTINUED
FINANCIAL SERVICES - 6.55%
Advanta Corp. Notes, 7.000%, 05/01/01................. $ 1,000,000 $ 1,008,750
Bankers Trust - N.Y. Corp. Subordinated Debentures,
8.125%, 04/01/02..................................... 750,000 798,750
Chrysler Financial Corp. Notes, 6.625%, 08/15/00...... 1,000,000 1,005,000
Continental Corp. Notes, 7.250%, 03/01/03............. 250,000 255,937
Federal Realty Investment Trust Convertible
Subordinated Bonds, 5.250%, 10/28/03................. 945,000 831,600
First USA Bank Notes, 7.000%, 08/20/01................ 1,000,000 1,008,750
International Bank for Reconstruction & Development
Notes, 9.770%, 05/27/98.............................. 1,000,000 1,057,500
Leucadia National Corp. Senior Subordinated Notes,
8.250%, 06/15/05..................................... 975,000 1,001,812
Metropolitan Life Insurance Co. - 144A Surplus Notes,
6.300%, 11/01/03..................................... 1,000,000 972,500
Pacific Mutual Life Insurance Co. - 144A Surplus
Notes, 7.900%, 12/30/23.............................. 1,000,000 1,025,000
Prudential Insurance Co. of America Notes, 6.875%,
04/15/03............................................. 250,000 249,688
Prudential Insurance Co. of America - 144A Surplus
Notes, 8.300%, 07/01/25.............................. 1,000,000 1,041,250
------------
10,256,537
------------
FOOD & BEVERAGE - 0.63%
Nabisco, Inc. Notes, 6.700%, 06/15/02................. 1,000,000 995,000
------------
HEALTH CARE - 0.53%
Hospital Corp. of America, Zero Coupon Debentures,
06/01/00*............................................ 1,100,000 834,625
------------
INDUSTRIAL - 0.93%
Brown Group, Inc. - 144A Senior Notes, 9.500%,
10/15/06............................................. 750,000 753,750
Viacom, Inc. Subordinated Debentures, 8.000%,
07/07/06............................................. 750,000 706,875
------------
1,460,625
------------
LODGING - 0.82%
Hilton Hotels, Inc. Notes, 7.700%, 07/15/02........... 1,250,000 1,287,500
------------
MANUFACTURING - 0.53%
Owens-Illinois, Inc. Senior Debentures, 11.000%,
12/01/03............................................. 750,000 825,997
------------
MINING - 0.32%
Santa Fe Pacific Gold Corp. Senior Debentures, 8.375%,
07/01/05............................................. 500,000 501,250
------------
PUBLISHING/PRINTING - 0.33%
Valassis Inserts, Inc. Senior Subordinated Notes,
9.375%, 03/15/99..................................... 500,000 518,125
------------
RETAILING-SPECIALTY - 0.41%
Southland Corp. Senior Subordinated Debentures,
5.000%, 12/15/03..................................... 800,000 642,000
------------
</TABLE>
See accompanying notes to financial statements.
22
<PAGE>
CT&T FUNDS
CHICAGO TRUST ASSET ALLOCATION FUND
SCHEDULE OF INVESTMENTS - CONTINUED OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
----------- ------------
<S> <C> <C>
FIXED INCOME SECURITIES - CONTINUED
UTILITIES - 2.22%
Commonwealth Edison Co. First Mortgage Bonds,
7.750%, 07/15/23.................................. $ 1,000,000 $ 976,250
Gulf States Utilities First Mortgage Bonds, 7.350%,
11/01/98.......................................... 500,000 511,250
Long Island Lighting Co. Debentures, 9.000%,
11/01/22.......................................... 1,000,000 1,002,500
Philadelphia Electric Co. First Mortgage Bonds,
5.625%, 11/01/01.................................. 500,000 481,250
Public Service Co. - New Hampshire First Mortgage
Bonds, 9.170%, 05/15/98........................... 500,000 513,750
------------
3,485,000
------------
YANKEE - 1.38%
Chilgener S.A. Notes, 6.500%, 01/15/06............. 1,250,000 1,187,500
Province of Mendoza - 144A Secured Notes, 10.000%,
07/25/02.......................................... 479,167 485,755
Skandinaviska Enskilda Subordinated Notes, 6.625%,
03/29/49.......................................... 500,000 493,195
------------
2,166,450
------------
TOTAL CORPORATE BONDS, NOTES AND DEBENTURES (COST
$25,305,352)...................................... 25,463,349
------------
TOTAL FIXED INCOME SECURITIES (COST $61,456,136)... 61,541,409
------------
TOTAL INVESTMENTS - 100.09% (COST $138,715,011)/1/. 156,850,733
------------
LIABILITIES NET OF CASH AND OTHER ASSETS - (0.09%). (147,290)
------------
NET ASSETS - 100.00%............................... $156,703,443
============
/1/Aggregate cost for federal income tax purposes
is $138,715,011; and net unrealized appreciation
is as follows:
Gross unrealized appreciation..................... $19,252,173
Gross unrealized depreciation..................... (1,116,451)
-----------
Net unrealized appreciation...................... $18,135,722
===========
</TABLE>
*Non-income producing security.
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION
- ---------------------
<S> <C>
Common Stock 55%
Repurchase Agreement 6%
U.S. Government Obligations 6%
U.S. Government Agency Obligations 15%
Government Trust Certificates 1%
Aaa 1%
A 5%
Baa 7%
Ba 3%
B 1%
----
100%
====
</TABLE>
See accompanying notes to financial statements.
23
<PAGE>
CT&T FUNDS
MONTAG & CALDWELL BALANCED FUND
SCHEDULE OF INVESTMENTS OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
---------- -----------
<S> <C> <C>
COMMON STOCK - 60.35%
COMMERCIAL SERVICES - 1.53%
Manpower, Inc. ......................................... 17,011 $ 482,687
-----------
COMPUTERS/OFFICE EQUIPMENT - 17.43%
Adaptec, Inc.*.......................................... 7,008 426,612
Cisco Systems, Inc.*.................................... 10,222 632,486
Electronic Arts, Inc.* ................................. 10,249 384,338
Electronic Data Systems Corp. .......................... 11,371 511,695
Intel Corp. ............................................ 8,223 903,502
Microsoft Corp.*........................................ 4,743 650,977
Oracle Systems Corp.*................................... 13,897 588,017
Seagate Technology, Inc.*............................... 11,589 773,566
Solectron Corp.*........................................ 11,471 613,698
-----------
5,484,891
-----------
CONSUMER DURABLES - 0.97%
Harley Davidson, Inc. .................................. 6,770 305,496
-----------
CONSUMER NON-DURABLES - 7.96%
CUC International, Inc.*................................ 15,519 380,215
Gillette Co. ........................................... 8,809 658,473
Interpublic Group of Companies, Inc. ................... 7,562 366,757
Mattel, Inc. ........................................... 11,889 343,295
Procter & Gamble Co. ................................... 7,637 756,063
-----------
2,504,803
-----------
ELECTRICAL EQUIPMENT - 1.55%
Duracell International, Inc. ........................... 7,294 486,875
-----------
ENTERTAINMENT & LEISURE - 1.87%
Walt Disney Co. ........................................ 8,952 589,713
-----------
FINANCIAL SERVICES - 4.53%
American Express Co. ................................... 12,178 572,366
Federal National Mortgage Association................... 12,184 476,699
First Data Corp. ....................................... 4,715 376,021
-----------
1,425,086
-----------
FOOD & BEVERAGE - 7.20%
Coca-Cola Co. .......................................... 14,242 719,221
McDonald's Corp. ....................................... 8,061 357,707
Pioneer Hi-Bred International, Inc. .................... 6,303 423,089
Sysco Corp. ............................................ 11,424 388,416
Wrigley, Wm. Jr., Co. .................................. 6,266 377,526
-----------
2,265,959
-----------
</TABLE>
See accompanying notes to financial statements.
24
<PAGE>
CT&T FUNDS
MONTAG & CALDWELL BALANCED FUND
SCHEDULE OF INVESTMENTS - CONTINUED OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
---------- -----------
<S> <C> <C>
COMMON STOCK - CONTINUED
HEALTH CARE - 1.87%
Johnson & Johnson....................................... 11,954 $ 588,735
-----------
LODGING - 1.06%
Marriott International, Inc. ........................... 5,856 333,060
-----------
MEDICAL SUPPLIES - 1.91%
Medtronic, Inc. ........................................ 9,337 601,069
-----------
PHARMACEUTICALS - 5.84%
Eli Lilly & Co. ........................................ 8,745 616,522
Merck & Co., Inc. ...................................... 8,476 628,284
Pfizer, Inc. ........................................... 7,186 594,642
-----------
1,839,448
-----------
RESTAURANTS - 0.79%
Cracker Barrel Old Country Store, Inc. ................. 12,129 247,128
-----------
RETAIL - 2.86%
Home Depot, Inc. ....................................... 10,272 562,392
The Gap, Inc. .......................................... 11,694 339,126
-----------
901,518
-----------
TELECOMMUNICATIONS EQUIPMENT - 2.98%
Ericsson (LM) Telefonaktiebolaget ADR .................. 15,661 432,635
U.S. Robotics Corp. .................................... 8,027 504,698
-----------
937,333
-----------
TOTAL COMMON STOCK (COST $15,232,209) .................. 18,993,801
-----------
MONEY MARKET FUND - 4.55% (COST $1,432,003)
Fidelity U.S. Government Reserves ...................... 1,432,003 1,432,003
-----------
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
FIXED INCOME SECURITIES - 34.30%
U.S. GOVERNMENT OBLIGATIONS - 12.03%
U.S. TREASURY NOTES - 11.28%
9.250%, 08/15/98 ....................................... $ 50,000 52,962
6.375%, 01/15/99 ....................................... 25,000 25,322
8.500%, 02/15/00 ....................................... 100,000 107,532
8.000%, 05/15/01 ....................................... 200,000 215,270
6.500%, 05/31/01 ....................................... 100,000 101,691
7.500%, 11/15/01 ....................................... 65,000 68,894
6.375%, 08/15/02 ....................................... 1,000,000 1,012,150
6.250%, 02/15/03 ....................................... 100,000 100,451
</TABLE>
See accompanying notes to financial statements.
25
<PAGE>
CT&T FUNDS
MONTAG & CALDWELL BALANCED FUND
SCHEDULE OF INVESTMENTS - CONTINUED OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
FIXED INCOME SECURITIES - CONTINUED
U.S. TREASURY NOTES - CONTINUED
5.750%, 08/15/03 ....................................... $ 100,000 $ 97,472
7.250%, 05/15/04 ....................................... 800,000 846,984
7.875%, 11/15/04 ....................................... 550,000 603,960
6.500%, 05/15/05 ....................................... 145,000 146,601
6.500%, 08/15/05 ....................................... 100,000 101,120
5.625%, 02/15/06 ....................................... 75,000 71,371
-----------
3,551,780
-----------
U.S. TREASURY BONDS - 0.75%
8.000%, 11/15/21 ....................................... 205,000 235,750
-----------
TOTAL U.S. GOVERNMENT OBLIGATIONS (COST $3,630,687) .... 3,787,530
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 12.05%
FEDERAL HOME LOAN BANK - 0.98%
5.990%, 10/01/03........................................ 320,000 308,931
-----------
FEDERAL HOME LOAN MORTGAGE CORP. - 8.00%
7.000%, 11/15/01, CMO REMIC ............................ 205,000 209,332
6.500%, 06/01/02........................................ 277,678 276,029
6.500%, 06/15/04, CMO REMIC ............................ 265,000 266,462
7.730%, 08/10/04, Debentures............................ 100,000 102,376
7.500%, 03/15/07, CMO REMIC ............................ 600,000 591,256
6.000%, 04/15/08, CMO REMIC ............................ 175,000 171,041
6.500%, 07/15/20, CMO REMIC ............................ 500,000 501,689
6.500%, 11/15/20, CMO REMIC ............................ 400,000 399,664
-----------
2,517,849
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 3.02%
7.500%, 03/01/99 ....................................... 149,770 152,766
8.250%, 12/18/00........................................ 45,000 48,362
6.000%, 02/25/07, CMO REMIC ............................ 255,000 252,466
7.070%, 03/08/11 ....................................... 500,000 496,380
-----------
949,974
-----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 0.05%
8.500%, 06/15/01........................................ 10,946 11,446
9.000%, 09/15/08........................................ 4,509 4,771
-----------
16,217
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST
$3,755,845) ........................................... 3,792,971
-----------
</TABLE>
See accompanying notes to financial statements.
26
<PAGE>
CT&T FUNDS
MONTAG & CALDWELL BALANCED FUND
SCHEDULE OF INVESTMENTS - CONTINUED OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
FIXED INCOME SECURITIES - CONTINUED
ASSET BACKED NOTES - 3.64%
AT&T Universal Card Master Trust CL A, 5.950%,
10/17/02 ............................................ $ 445,000 $ 439,768
Chemical Master Credit Card Trust I CL A, 6.230%,
06/15/03 ............................................ 300,000 300,608
Discover Card Trust CL A, 6.800%, 06/15/00 ........... 350,000 353,540
Discover Card Trust CL A, 6.250%, 08/16/00 ........... 50,000 50,121
-----------
TOTAL ASSET BACKED NOTES (COST $1,139,300) ........... 1,144,037
-----------
CORPORATE BONDS, NOTES AND DEBENTURES - 6.58%
FINANCIAL SERVICES - 4.45%
American General Finance Corp. Notes, 7.200%, 07/08/99
..................................................... 55,000 56,306
Chrysler Financial Corp. Notes, 8.500%, 11/23/06** ... 100,000 100,000
Household Finance Corp. Notes, 7,250%, 05/15/06....... 500,000 513,125
International Bank for Reconstruction & Development
Notes, 8.125%,
03/01/01 ............................................ 75,000 80,625
MBNA Corp. Notes, 6.875%, 06/01/05 ................... 125,000 123,594
J.P. Morgan & Co. Notes, 7.250%, 01/15/02............. 70,000 72,625
NationsBank Corp. Notes, 6.500%, 08/15/03 ............ 400,000 396,500
Salomon, Inc. Notes, 7.125%, 08/01/99................. 35,000 35,525
SunTrust Banks Debentures, 8.875%, 02/01/98........... 20,000 20,725
-----------
1,399,025
-----------
INSURANCE - 0.35%
National Re Corp. Notes, 8.850%, 01/15/05 ............ 100,000 110,875
-----------
RETAIL - 1.78%
J.C. Penney & Co., Inc. Debentures, 9.750%, 06/15/21 . 500,000 560,625
-----------
TOTAL CORPORATE BONDS, NOTES AND DEBENTURES (COST
$2,067,999).......................................... 2,070,525
-----------
TOTAL FIXED INCOME SECURITIES (COST $10,593,831)...... 10,795,063
-----------
TOTAL INVESTMENTS - 99.20% (COST $27,258,043)/1/...... 31,220,867
-----------
CASH AND OTHER ASSETS NET OF LIABILITIES - 0.80%...... 251,804
-----------
NET ASSETS - 100.00%.................................. $31,472,671
===========
/1/Aggregate cost for federal income tax purposes is
$27,298,706; and net unrealized appreciation is as
follows:
Gross unrealized appreciation........................ $4,137,769
Gross unrealized depreciation........................ (215,608)
----------
Net unrealized appreciation......................... $3,922,161
==========
</TABLE>
* Non-income producing security.
**Security is callable on 11/23/96 at which date a step-up, annually reset
interest rate begins.
See accompanying notes to financial statements.
27
<PAGE>
CT&T FUNDS
MONTAG & CALDWELL BALANCED FUND
SCHEDULE OF INVESTMENTS - CONTINUED OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION
- ---------------------
<S> <C>
Common Stock 61%
U.S. Government Obligations 12%
U.S. Government Agency Obligations 12%
Aaa 4%
A 6%
Money Market 5%
----
100%
====
</TABLE>
See accompanying notes to financial statements.
28
<PAGE>
CT&T FUNDS
CHICAGO TRUST BOND FUND
SCHEDULE OF INVESTMENTS OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
FIXED INCOME SECURITIES - 92.80%
U.S. GOVERNMENT OBLIGATIONS - 16.77%
U.S. TREASURY NOTES - 14.26%
7.375%, 11/15/97......................................... $1,250,000 $ 1,272,550
5.625%, 01/31/98......................................... 2,000,000 2,000,640
5.125%, 11/30/98......................................... 2,000,000 1,975,699
5.500%, 02/28/99......................................... 1,000,000 993,680
6.375%, 01/15/00......................................... 1,000,000 1,013,570
5.750%, 10/31/00......................................... 1,000,000 990,520
6.375%, 08/15/02......................................... 1,000,000 1,012,150
5.750%, 08/15/03......................................... 1,000,000 974,720
7.250%, 05/15/04......................................... 1,000,000 1,058,730
-----------
11,292,259
-----------
U.S. TREASURY BONDS - 2.51%
7.125%, 02/15/23......................................... 1,000,000 1,046,970
6.250%, 08/15/23......................................... 1,000,000 939,480
-----------
1,986,450
-----------
TOTAL U.S. GOVERNMENT OBLIGATIONS (COST $13,366,122)..... 13,278,709
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 34.34%
FEDERAL HOME LOAN MORTGAGE CORP. - 17.04%
5.850%, 02/21/06......................................... 1,500,000 1,424,520
7.000%, 10/15/06, CMO REMIC.............................. 1,500,000 1,514,472
6.000%, 03/15/07, CMO REMIC.............................. 1,500,000 1,488,832
6.500%, 09/15/07, CMO REMIC.............................. 1,000,000 998,717
5.750%, 01/15/08, CMO REMIC.............................. 500,000 483,389
7.500%, 04/01/08......................................... 658,404 669,944
6.000%, 03/15/09, CMO REMIC.............................. 1,000,000 914,044
6.500%, 06/01/09......................................... 1,612,904 1,592,402
7.500%, 11/01/10......................................... 1,331,830 1,355,728
6.500%, 01/01/11......................................... 1,882,881 1,856,352
6.000%, 12/15/23, CMO REMIC.............................. 1,400,000 1,203,737
-----------
13,502,137
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 7.33%
6.000%, 06/25/02, CMO REMIC.............................. 1,500,000 1,497,339
6.250%, 07/25/02, CMO REMIC.............................. 1,327,488 1,326,253
6.900%, 12/25/03, CMO REMIC.............................. 1,202,352 1,218,643
7.000%, 07/25/08......................................... 501,975 502,602
9.000%, 05/01/25......................................... 1,198,137 1,258,548
-----------
5,803,385
-----------
</TABLE>
See accompanying notes to financial statements.
29
<PAGE>
CT&T FUNDS
CHICAGO TRUST BOND FUND
SCHEDULE OF INVESTMENTS - CONTINUED OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
FIXED INCOME SECURITIES - CONTINUED
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 9.97%
8.000%, 06/15/17........................................ $1,125,986 $ 1,150,632
7.500%, 04/15/23........................................ 2,215,997 2,224,200
7.000%, 10/15/23........................................ 3,159,025 3,100,780
6.500%, 03/01/26........................................ 1,483,925 1,420,394
-----------
7,896,006
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST
$27,303,597)........................................... 27,201,528
-----------
GOVERNMENT TRUST CERTIFICATES - 0.98% (COST $793,250)
GTC Israel, 9.250%, 11/15/01 - Class 1-C................ 725,000 778,469
-----------
ASSET BACKED NOTES - 1.84% (COST $1,457,965)
Chemical Master Credit Card Trust CL A, 5.550%,
09/15/03............................................... 1,500,000 1,460,889
-----------
COLLATERALIZED MORTGAGE OBLIGATION - 1.14% (COST
$883,613)
Midland Realty Acceptance Corp., 7.475%, 08/25/28....... 875,000 904,258
-----------
CORPORATE BONDS, NOTES AND DEBENTURES - 37.73%
AIRLINES - 0.93%
Delta Airlines, Inc. Equipment Trust Bonds, 8.540%,
01/02/07............................................... 452,212 488,218
Delta Airlines, Inc. Equipment Trust Bonds, 9.375%,
09/11/07............................................... 221,842 252,900
-----------
741,118
-----------
ENTERTAINMENT - 0.98%
Time Warner, Inc. - 144A Preferred Stock/Sinking Fund,
10.250%, 07/01/16...................................... 733,000 775,148
-----------
EQUIPMENT - 1.77%
John Deere Capital Corp. Subordinated Debentures,
8.625%, 08/01/19....................................... 1,275,000 1,402,500
-----------
FINANCIAL SERVICES - 15.87%
Advanta Corp. Notes, 7.000%, 05/01/01................... 1,250,000 1,260,937
Bankers Trust - N.Y. Corp. Subordinated Notes, 7.500%,
01/15/02............................................... 1,273,000 1,320,737
Chrysler Financial Corp. Senior Notes, 6.625%, 08/15/00. 1,250,000 1,256,250
Continental Corp. Notes, 7.250%, 03/01/03............... 1,250,000 1,279,687
Federal Realty Investment Trust Convertible Subordinated
Bonds,
5.250%, 10/28/03....................................... 1,000,000 880,000
First USA Bank Notes, 7.000%, 08/20/01.................. 1,250,000 1,260,937
Goldman Sachs Group L.P. - 144A Notes, 6.200%, 12/15/00. 1,000,000 986,065
Leucadia National Corp. Senior Subordinated Notes,
8.250%, 06/15/05....................................... 1,000,000 1,027,500
Metropolitan Life Insurance Co. - 144A Surplus Notes,
6.300%, 11/01/03....................................... 1,000,000 972,500
Pacific Mutual Life Insurance Co. - 144A Surplus Notes,
7.900%, 12/30/23....................................... 1,250,000 1,281,250
Prudential Insurance Co. of America - 144A Surplus
Notes, 8.300%, 07/01/25................................ 1,000,000 1,041,250
-----------
12,567,113
-----------
</TABLE>
See accompanying notes to financial statements.
30
<PAGE>
CT&T FUNDS
CHICAGO TRUST BOND FUND
SCHEDULE OF INVESTMENTS - CONTINUED OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<S> <C> <C>
FIXED INCOME SECURITIES - CONTINUED
</TABLE>
<TABLE>
<S> <C> <C>
FOOD & BEVERAGE - 0.63%
Nabisco, Inc. Notes, 6.700%, 06/15/02................... $ 500,000 $ 497,500
-----------
INDUSTRIAL - 2.46%
Brown Group , Inc. - 144A Senior Notes, 9.500%,
10/15/06............................................... 1,000,000 1,005,000
Viacom, Inc. Subordinated Debentures, 8.000%, 07/07/06.. 1,000,000 942,500
-----------
1,947,500
-----------
LODGING - 1.95%
Hilton Hotels, Inc. Notes, 7.700%, 07/15/02............. 1,500,000 1,545,000
-----------
MANUFACTURING - 2.28%
Figgie International, Inc. Senior Notes, 9.875%,
10/01/99............................................... 1,000,000 1,035,000
Owens-Illinois, Inc. Senior Debentures, 11.000%,
12/01/03............................................... 700,000 770,875
-----------
1,805,875
-----------
MINING - 0.95%
Santa Fe Pacific Gold Corp. Senior Debentures, 8.375%,
07/01/05 .............................................. 750,000 751,875
-----------
PUBLISHING/PRINTING - 0.98%
Valassis Inserts, Inc. Senior Subordinated Notes,
9.375%, 03/15/99 ...................................... 750,000 777,187
-----------
RETAILING-SPECIALTY - 0.76%
Southland Corp. Senior Subordinated Debentures, 5.000%,
12/15/03 .............................................. 750,000 601,875
-----------
UTILITIES - 4.88%
Commonwealth Edison Co. First Mortgage Bonds, 7.750%,
07/15/23 .............................................. 1,000,000 976,250
Long Island Lighting Co. Debentures, 9.000%, 11/01/22 .. 1,250,000 1,253,125
Philadelphia Electric Co. First Mortgage Bonds, 5.625%,
11/01/01 .............................................. 900,000 866,250
Public Service Co. - New Hampshire First Mortgage Bonds,
9.170%, 05/15/98 ...................................... 750,000 770,625
-----------
3,866,250
-----------
YANKEE - 3.29%
Chilgener S.A. Notes, 6.500%, 01/15/06 ................. 1,200,000 1,140,000
Province of Mendoza - 144A Secured Notes, 10.000%,
07/25/02............................................... 718,750 728,633
Skandinaviska Enskilda Subordinated Notes, 6.625%,
03/29/49 .............................................. 750,000 739,793
-----------
2,608,426
-----------
TOTAL CORPORATE BONDS, NOTES AND DEBENTURES (COST
$29,628,699) .......................................... $29,887,367
-----------
TOTAL FIXED INCOME SECURITIES (COST $73,433,246) ....... 73,511,220
-----------
</TABLE>
See accompanying notes to financial statements.
31
<PAGE>
CT&T FUNDS
CHICAGO TRUST BOND FUND
SCHEDULE OF INVESTMENTS - CONTINUED OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
REPURCHASE AGREEMENT - 5.81% (COST $4,598,000)
J.P. Morgan, U.S. Treasury Notes, $4,621,000 par,
6.375% coupon,
due 03/31/01, dated 10/31/96, to be sold on 11/01/96
at $4,598,722 ....................................... $4,598,000 $ 4,598,000
-----------
TOTAL INVESTMENTS - 98.61% (COST $78,031,246)/1/...... 78,109,220
-----------
CASH AND OTHER ASSETS NET OF LIABILITIES - 1.39% ..... 1,101,508
-----------
NET ASSETS - 100.00% ................................. $79,210,728
===========
/1/Aggregate cost for federal income tax purposes is
$78,031,246; and net unrealized appreciation is as
follows:
Gross unrealized appreciation ....................... $ 564,546
Gross unrealized depreciation ....................... (486,572)
----------
Net unrealized appreciation......................... $ 77,974
==========
</TABLE>
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION
- ---------------------
<S> <C>
U.S. Government Obligations 17%
U.S. Government Agency Obligations 35%
Government Trust Certificates 1%
Aaa 2%
A 11%
Baa 14%
Ba 11%
B 3%
Repurchase Agreement 6%
----
100%
====
</TABLE>
See accompanying notes to financial statements.
32
<PAGE>
CT&T FUNDS
CHICAGO TRUST MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
MUNICIPAL BONDS - 96.56%
ARIZONA - 6.05%
Salt River Project Electric System Revenue, Refunding
Series A
5.500%, 01/01/05....................................... $ 450,000 $ 469,962
Tucson, Arizona Water Revenue
5.400%, 07/01/05....................................... 200,000 206,480
-----------
676,442
-----------
FLORIDA - 5.79%
Dade County, Florida School District, G.O., MBIA Insured
5.000%, 07/15/02....................................... 265,000 271,116
Putnam County, Florida Development Authority Revenue
3.600%, 09/01/24*...................................... 100,000 100,000
State of Florida, G.O.
4.700%, 07/01/97....................................... 275,000 276,931
-----------
648,047
-----------
GEORGIA - 4.48%
State of Georgia, Series A, G.O.
6.100%, 03/01/05....................................... 250,000 272,355
State of Georgia, Series D, G.O.
6.700%, 08/01/09....................................... 200,000 228,998
-----------
501,353
-----------
ILLINOIS - 9.00%
Chicago, Illinois Metropolitan Water Reclamation, G.O.
6.600%, 01/01/02....................................... 250,000 272,203
Cook County, Illinois Series B, G.O., MBIA Insured
4.700%, 11/15/01....................................... 475,000 478,914
State of Illinois, G.O., FGIC Insured
5.150%, 09/01/02....................................... 250,000 256,115
-----------
1,007,232
-----------
MARYLAND - 2.28%
University of Maryland Revenue, Series B
5.400%, 04/01/98....................................... 250,000 255,267
-----------
MINNESOTA - 2.36%
State of Minnesota, G.O.
4.900%, 08/01/98....................................... 260,000 264,540
-----------
NEVADA - 7.68%
Clark County, Nevada School District, G.O., FGIC Insured
6.400%, 06/15/06....................................... 350,000 382,547
State of Nevada, Water Pollution Control, Revolving
Funding, G.O.
4.100%, 11/01/98....................................... 475,000 476,221
-----------
858,768
-----------
</TABLE>
See accompanying notes to financial statements.
33
<PAGE>
CT&T FUNDS
CHICAGO TRUST MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS - CONTINUED OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
MUNICIPAL BONDS - CONTINUED
NEW JERSEY - 7.04%
New Jersey State Transportation Trust Fund Revenue,
Series A, AMBAC Insured, Escrowed to Maturity
5.200%, 12/15/00....................................... $ 350,000 $ 361,032
South Brunswick Township Board of Education, G.O.
6.300%, 04/01/05....................................... 200,000 216,496
State of New Jersey, Series D, G.O.
5.500%, 02/15/04....................................... 200,000 209,826
-----------
787,354
-----------
NEW YORK - 2.24%
New York State Dormitory Authority Revenue, Series C
5.100%, 05/15/03....................................... 250,000 250,408
-----------
OHIO - 1.84%
Ohio State Public Facilities Commission (Higher
Education), AMBAC Insured 5.200%, 05/01/01............. 200,000 205,524
-----------
OKLAHOMA - 3.24%
Tulsa, Oklahoma Metropolitan Utilities Authority Revenue
5.500%, 07/01/00....................................... 350,000 362,463
-----------
OREGON - 2.48%
Portland, Oregon, Series A, G.O.
7.000%, 06/01/01....................................... 250,000 276,975
-----------
PENNSYLVANIA - 4.13%
Commonwealth of Pennsylvania, G.O., FGIC Insured
5.250%, 05/15/99....................................... 200,000 205,270
Commonwealth of Pennsylvania, G.O., MBIA Insured
5.100%, 06/15/03....................................... 250,000 256,550
-----------
461,820
-----------
PUERTO RICO - 3.97%
Commonwealth of Puerto Rico, Series A, G.O., MBIA
Insured
6.500%, 07/01/03....................................... 400,000 444,512
-----------
RHODE ISLAND - 2.63%
State of Rhode Island, Series A, G.O., FGIC Insured
6.000%, 06/15/02....................................... 275,000 293,656
-----------
TEXAS - 10.58%
Arlington Independent School District, Refunding, G.O.
5.400%, 02/15/99....................................... 375,000 385,316
Galena Park, Texas Independent School District G.O.,
Public School Funding Insured
5.100%, 08/15/04....................................... 125,000 127,526
Texas State Public Finance Authority, G.O.
5.600%, 10/01/02....................................... 200,000 210,936
Texas Water Development Board, G.O., Escrowed to
Maturity
5.000%, 08/01/99....................................... 450,000 459,981
-----------
1,183,759
-----------
</TABLE>
See accompanying notes to financial statements.
34
<PAGE>
CT&T FUNDS
CHICAGO TRUST MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS - CONTINUED OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
MUNICIPAL BONDS - CONTINUED
UTAH - 6.19%
Jordan School District, Series A, G.O.
5.250%, 06/15/00...................................... $ 475,000 $ 487,640
Utah State Building Authority Revenue, Series A
5.125%, 05/15/03...................................... 200,000 204,564
-----------
692,204
-----------
VIRGINIA - 4.60%
Henrico County, Virginia Industrial Development
Authority Revenue
5.300%, 12/01/11...................................... 250,000 252,032
Virginia Public School Authority Revenue
5.500%, 08/01/03...................................... 250,000 262,098
-----------
514,130
-----------
WASHINGTON - 4.50%
King County, Washington, Series A, G.O.
5.800%, 01/01/04...................................... 475,000 503,628
-----------
WISCONSIN - 5.48%
Milwaukee, Wisconsin, Series CB-2, G.O.
4.250%, 12/15/00...................................... 350,000 347,700
State of Wisconsin, Series A, G.O.
5.750%, 05/01/04...................................... 250,000 265,540
-----------
613,240
-----------
TOTAL MUNICIPAL BONDS (COST $10,622,553)............... 10,801,322
-----------
<CAPTION>
SHARES
----------
<S> <C> <C>
TAX EXEMPT MONEY MARKET FUNDS - 1.72%
Goldman Sachs Tax Exempt Fund.......................... 12 12
Provident Munifund..................................... 192,830 192,830
-----------
TOTAL TAX EXEMPT MONEY MARKET FUNDS (COST $192,842).... 192,842
-----------
TOTAL INVESTMENTS - 98.28% (COST $10,815,395)/1/....... 10,994,164
-----------
CASH AND OTHER ASSETS NET OF LIABILITIES - 1.72%....... 191,998
-----------
NET ASSETS - 100.00%................................... $11,186,162
===========
/1/Aggregate cost for federal income tax purposes is $10,815,395; and net
unrealized appreciation is as follows:
Gross unrealized appreciation......................... $ 197,528
Gross unrealized depreciation......................... (18,759)
----------
Net unrealized appreciation.......................... $ 178,769
==========
</TABLE>
*Variable rate security. The rate shown is the rate in effect at October 31,
1996.
See accompanying notes to financial statements.
35
<PAGE>
CT&T FUNDS
CHICAGO TRUST MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS - CONTINUED OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PORTFOLIO
COMPOSITION
- -----------
<S> <C>
Aaa 47%
Aa 45%
A 4%
Baa 2%
Money Market 2%
----
100%
====
</TABLE>
See accompanying notes to financial statements.
36
<PAGE>
CT&T FUNDS
CHICAGO TRUST MONEY MARKET FUND
SCHEDULE OF INVESTMENTS OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
----------- ------------
<S> <C> <C>
CORPORATE BONDS - 2.42%
Pepsico, Inc.
5.000%, 02/24/97...................................... $ 5,500,000 $ 5,483,886
------------
GIC WITHIN FUNDING AGREEMENT - 3.31%
Allstate Life Funding Agreement
5.540%, 12/02/96**.................................... 7,500,000 7,500,000
------------
TOTAL BONDS............................................ 12,983,886
------------
BANKERS' ACCEPTANCES -- 2.64%
First National Bank of Chicago
5.280%, 11/22/96 ..................................... 3,000,000 2,990,760
First National Bank of Chicago
5.300%, 12/10/96 ..................................... 3,000,000 2,982,775
------------
TOTAL BANKERS' ACCEPTANCES ............................ 5,973,535
------------
CERTIFICATES OF DEPOSIT - 9.06%
U.S. National Bank of Oregon
5.400%, 11/25/96 ..................................... 5,000,000 5,000,000
Old Kent Bank
5.310%, 11/29/96...................................... 4,500,000 4,500,000
Old Kent Bank
5.350%, 12/10/96...................................... 1,532,000 1,532,000
U.S. National Bank of Oregon
5.320%, 12/12/96...................................... 5,000,000 5,000,000
Old Kent Bank
5.350%, 12/13/96...................................... 4,500,000 4,500,000
------------
TOTAL CERTIFICATES OF DEPOSIT.......................... 20,532,000
------------
COMMERCIAL PAPER - 66.49%
TransAmerica Finance Group, Inc.
5.290%, 11/01/96...................................... 4,500,000 4,500,000
Norwest Financial, Inc.
5.310%, 11/04/96...................................... 4,500,000 4,500,000
American Express Credit Corp.
5.405%, 11/05/96...................................... 1,000,000 1,000,000
Ford Motor Credit Co.
5.415%, 11/05/96...................................... 1,103,000 1,103,000
International Lease Finance Corp.
5.400%, 11/05/96...................................... 2,417,000 2,415,550
CIT Group Holdings, Inc.
5.280%, 11/06/96...................................... 4,548,000 4,544,665
IBM Credit Corp.
5.286%, 11/07/96...................................... 4,500,000 4,500,000
Pfizer, Inc.
5.270%, 11/12/96...................................... 4,528,000 4,520,709
Prudential Funding Corp.
5.291%, 11/13/96...................................... 4,500,000 4,500,000
American Express Credit Corp.
5.395%, 11/14/96...................................... 4,500,000 4,500,000
</TABLE>
See accompanying notes to financial statements.
37
<PAGE>
CT&T FUNDS
CHICAGO TRUST MONEY MARKET FUND
SCHEDULE OF INVESTMENTS - CONTINUED OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
----------- -----------
<S> <C> <C>
COMMERCIAL PAPER - CONTINUED
Beneficial Corp.
5.478%, 11/15/96....................................... $ 300,000 $ 300,000
Heller Financial, Inc.
5.480%, 11/15/96....................................... 4,200,000 4,200,000
Abbott Laboratories
5.350%, 11/19/96....................................... 4,600,000 4,587,695
General Electric Capital Corp.
5.412%, 11/21/96 ...................................... 4,400,000 4,400,000
Sears Roebuck Acceptance Corp.
5.379%, 11/22/96 ...................................... 1,550,000 1,550,000
Heller Financial, Inc.
5.426%, 11/26/96 ...................................... 4,500,000 4,500,000
General Motors Acceptance Corp.
5.350%, 11/27/96 ...................................... 4,548,000 4,530,427
Toyota Motor Credit Corp.
5.380%, 12/02/96 ...................................... 4,550,000 4,528,921
Southern California Edison Co.
5.380%, 12/03/96 ...................................... 4,550,000 4,528,241
Toyota Motor Credit Corp.
5.270%, 12/04/96 ...................................... 4,545,000 4,523,044
IBM Credit Corp.
5.289%, 12/05/96 ...................................... 4,500,000 4,500,000
Chrysler Financial Corp.
5.289%, 12/06/96 ...................................... 4,500,000 4,500,000
TransAmerica Finance Group, Inc.
5.240%, 12/09/96 ...................................... 4,500,000 4,475,110
Household Finance Corp.
5.282%, 12/11/96 ...................................... 4,500,000 4,500,000
General Motors Acceptance Corp.
5.339%, 12/16/96 ...................................... 4,500,000 4,500,000
AVCO Financial Services, Inc.
5.312%, 12/17/96 ...................................... 4,500,000 4,500,000
Ford Motor Credit Co.
5.316%, 12/18/96 ...................................... 4,500,000 4,500,000
General Electric Capital Corp.
5.298%, 12/19/96 ...................................... 4,500,000 4,500,000
Prudential Funding Corp.
5.286%, 12/20/96 ...................................... 4,500,000 4,500,000
Chrysler Financial Corp.
5.308%, 12/23/96 ...................................... 4,500,000 4,500,000
Ford Motor Credit Co.
5.320%, 12/24/96 ...................................... 4,500,000 4,500,000
Beneficial Corp.
5.290%, 12/26/96 ...................................... 5,000,000 4,959,972
</TABLE>
See accompanying notes to financial statements.
38
<PAGE>
CT&T FUNDS
CHICAGO TRUST MONEY MARKET FUND
SCHEDULE OF INVESTMENTS - CONTINUED OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
----------- ------------
<S> <C> <C>
COMMERCIAL PAPER - CONTINUED
Abbott Laboratories
5.220%, 12/30/96 ................................... $ 4,500,000 $ 4,461,502
Chrysler Financial Corp.
5.314%, 12/31/96 ................................... 1,500,000 1,500,000
Heller Financial, Inc.
5.418%, 12/31/96 ................................... 3,000,000 3,000,000
Norwest Financial, Inc.
5.369%, 01/10/97 ................................... 4,500,000 4,500,000
International Lease Finance Corp.
5.300%, 01/21/97 ................................... 4,560,000 4,505,622
Sears Roebuck Acceptance Corp.
5.400%, 01/24/97 ................................... 4,500,000 4,500,000
------------
TOTAL COMMERCIAL PAPER............................... 150,634,458
------------
TIME DEPOSITS - 7.95%
Canadian Imperial Bank of Commerce
5.340%, 11/08/96.................................... 4,500,000 4,500,000
Royal Bank of Canada
5.313%, 11/18/96.................................... 4,500,000 4,500,000
Bank of Montreal
5.430%, 11/20/96.................................... 4,500,000 4,500,000
Toronto Dominion Bank
5.344%, 01/09/97.................................... 4,500,000 4,500,000
------------
TOTAL TIME DEPOSITS.................................. 18,000,000
------------
REPURCHASE AGREEMENT - 8.27% (COST $18,725,000)
Bank of America, U.S. Treasury Notes, $18,570,000
par, 5.680% coupon, due 12/31/96, dated 10/31/96, to
be sold on 11/01/96 at $18,727,954.................. 18,725,000 18,725,000
------------
TOTAL INVESTMENTS* - 100.14%......................... 226,848,879
------------
LIABILITIES NET OF CASH AND OTHER ASSETS - (0.14%)... (313,263)
------------
NET ASSETS - 100.00%................................. $226,535,616
============
</TABLE>
*At October 31, 1996, cost is identical for book and federal income tax
purposes.
**Variable rate security. The rate shown is the rate in effect at October 31,
1996.
See accompanying notes to financial statements.
39
<PAGE>
CT&T FUNDS
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHICAGO
MONTAG & TRUST GROWTH CHICAGO CHICAGO
CALDWELL & INCOME TRUST TRUST ASSET
GROWTH FUND FUND TALON FUND ALLOCATION FUND
------------ ------------ ----------- ---------------
<S> <C> <C> <C> <C>
ASSETS:
Investments at value/1/
(Cost $186,481,595,
$164,312,691, $14,954,198
and $138,715,011,
respectively)............ $219,194,881 $207,932,494 $17,464,327 $156,850,733
Cash...................... 0 830 130,847 731
Receivables:
Dividends and interest.. 154,484 68,392 36,531 970,926
Fund shares sold........ 163,492 23,277 500 75
Investments sold........ 1,655,915 0 80,960 0
Due from Advisor, net... 0 0 14,322 0
Deferred organization
costs (Note A)........... 10,002 10,571 9,609 5,437
------------ ------------ ----------- ------------
Total assets.......... 221,178,774 208,035,564 17,737,096 157,827,902
------------ ------------ ----------- ------------
LIABILITIES:
Payables:
Investments purchased... 2,012,337 1,766,460 294,892 0
Fund shares redeemed.... 330,802 985,371 0 1,010,909
Due to Advisor, net..... 101,771 67,334 0 48,277
Accrued expenses.......... 83,969 83,082 24,529 65,273
------------ ------------ ----------- ------------
Total liabilities..... 2,528,879 2,902,247 319,421 1,124,459
------------ ------------ ----------- ------------
NET ASSETS:
Applicable to 12,801,570,
12,687,963, 1,210,058,
and 16,316,686 shares
outstanding,
respectively............. $218,649,895 $205,133,317 $17,417,675 $156,703,443
============ ============ =========== ============
NET ASSETS CONSIST OF:
Capital paid-in........... $184,137,775 $157,075,000 $13,440,381 $135,747,284
Accumulated undistributed
(distributions in excess
of) net investment
income................... (73,703) 133,556 8,945 567,503
Accumulated net realized
gain on investments...... 1,872,537 4,304,958 1,458,220 2,252,934
Net unrealized
appreciation/depreciation
on investments........... 32,713,286 43,619,803 2,510,129 18,135,722
------------ ------------ ----------- ------------
$218,649,895 $205,133,317 $17,417,675 $156,703,443
============ ============ =========== ============
Net asset value and
redemption price
per share................ $17.08 $16.17 $14.39 $9.60
============ ============ =========== ============
</TABLE>
Montag & Caldwell Growth Fund Class N (Retail) Class:
Net Asset Value, offering price and redemption price per share (Based on net
assets of $166,242,917 and 9,733,552 shares issued and outstanding) (Note
C).......................................................................$17.08
Montag & Caldwell Growth Fund Class I (Institutional) Class:
Net Asset Value, offering price and redemption price per share (Based on net
assets of $52,406,978 and 3,068,018 shares issued and outstanding) (Note
C).......................................................................$17.08
/1/Investments at value include investments in repurchase agreements of
$6,446,000, $16,023,000, $507,000 and $8,854,000, respectively.
See accompanying notes to financial statements.
40
<PAGE>
CT&T FUNDS
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED) OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONTAG & CALDWELL CHICAGO TRUST CHICAGO TRUST CHICAGO TRUST
BALANCED BOND MUNICIPAL BOND MONEY MARKET
FUND FUND FUND FUND
----------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments at value/1/
(Cost $27,258,043,
$78,031,246, $10,815,395
and $226,848,879,
respectively)............ $31,220,867 $78,109,220 $10,994,164 $226,848,879
Cash...................... 0 637 0 3,846
Receivables:
Dividends and interest.. 192,964 1,081,867 185,403 671,369
Fund shares sold........ 54,190 58,391 0 0
Investments sold........ 102,375 0 0 0
Due from Advisor, net... 9,858 6,658 12,983 0
Deferred organization
costs (Note A)........... 10,002 10,571 10,571 10,571
----------- ----------- ----------- ------------
Total assets.......... 31,590,256 79,267,344 11,203,121 227,534,665
----------- ----------- ----------- ------------
LIABILITIES:
Payables:
Investments purchased... 75,327 0 0 0
Fund shares redeemed.... 13,218 12,369 0 0
Due to Advisor, net..... 0 0 0 30,451
Income distributions.... 0 0 0 927,772
Accrued expenses.......... 29,040 44,247 16,959 40,826
----------- ----------- ----------- ------------
Total liabilities..... 117,585 56,616 16,959 999,049
----------- ----------- ----------- ------------
NET ASSETS:
Applicable to 2,202,131,
8,007,883, 1,112,365, and
226,535,616 shares
outstanding,
respectively............. $31,472,671 $79,210,728 $11,186,162 $226,535,616
=========== =========== =========== ============
NET ASSETS CONSIST OF:
Capital paid-in........... $24,777,133 $78,852,152 $11,080,780 $226,535,616
Accumulated undistributed
net investment income.... 70,787 258,643 23,870 0
Accumulated net realized
gain (loss) on
investments.............. 2,661,927 21,959 (97,257) 0
Net unrealized
appreciation/depreciation
on investments........... 3,962,824 77,974 178,769 0
----------- ----------- ----------- ------------
$31,472,671 $79,210,728 $11,186,162 $226,535,616
=========== =========== =========== ============
Net asset value and
redemption price
per share................ $14.29 $9.89 $10.06 $1.00
=========== =========== =========== ============
</TABLE>
/1/Investments at value include investments in repurchase agreements of $0,
$4,598,000, $0 and $18,725,000, respectively.
See accompanying notes to financial statements.
41
<PAGE>
CT&T FUNDS
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHICAGO CHICAGO
MONTAG & TRUST CHICAGO TRUST ASSET
CALDWELL GROWTH & TRUST ALLOCATION
GROWTH FUND INCOME FUND TALON FUND FUND
----------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends................... $ 941,980 $ 2,582,831 $ 45,614 $ 1,216,831
Interest.................... 320,772 760,660 178,811 4,867,412
----------- ----------- ---------- -----------
Total investment income... 1,262,752 3,343,491 224,425 6,084,243
----------- ----------- ---------- -----------
EXPENSES:
Investment advisory fees
(Note E)................... 834,718 1,324,207 112,153 1,075,631
Distribution expenses (Note
E)......................... 221,866 472,931 35,048 384,154
Transfer agent fees (Note
E)......................... 35,977 44,884 39,439 32,694
Administration fees (Note
E)......................... 58,127 104,720 9,096 83,563
Accounting fees............. 57,497 72,736 25,595 65,708
Registration expenses....... 45,323 68,135 14,031 78,728
Custodian fees.............. 27,565 37,139 13,380 33,867
Professional fees........... 26,561 19,613 19,077 20,173
Amortization of organization
costs (Note A)............. 3,342 5,011 3,342 1,405
Report to shareholder
expense.................... 9,173 16,909 3,641 11,703
Trustees fees (Note E)...... 1,781 1,781 1,781 1,781
Miscellaneous expenses...... 3,504 9,691 962 7,330
----------- ----------- ---------- -----------
Total expenses............ 1,325,434 2,177,757 277,545 1,796,737
Expenses reimbursed (Note
E)......................... (34,647) (285,994) (95,297) (260,144)
----------- ----------- ---------- -----------
Net expenses.............. 1,290,787 1,891,763 182,248 1,536,593
----------- ----------- ---------- -----------
NET INVESTMENT INCOME (LOSS).. (28,035) 1,451,728 42,177 4,547,650
----------- ----------- ---------- -----------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain on
investments (including a
net realized loss on option
transactions of $47,543 in
the Talon Fund)............ 2,171,050 4,305,113 1,453,661 2,227,691
Net change in unrealized
appreciation/depreciation
on investments (including a
change in unrealized
appreciation on option
transactions of $11,400 in
the Talon Fund)............ 26,825,183 39,311,048 1,649,993 17,768,218
----------- ----------- ---------- -----------
Net realized and
unrealized gain on
investments.............. 28,996,233 43,616,161 3,103,654 19,995,909
----------- ----------- ---------- -----------
INCREASE IN NET ASSETS FROM
OPERATIONS................... $28,968,198 $45,067,889 $3,145,831 $24,543,559
=========== =========== ========== ===========
</TABLE>
See accompanying notes to financial statements.
42
<PAGE>
CT&T FUNDS
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1996 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONTAG & CHICAGO CHICAGO TRUST CHICAGO TRUST
CALDWELL TRUST MUNICIPAL MONEY MARKET
BALANCED FUND BOND FUND BOND FUND FUND
------------- ---------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 150,474 $ 0 $ 0 $ 0
Interest............... 738,475 5,289,761 522,613 11,325,059
---------- ---------- -------- -----------
Total investment
income.............. 888,949 5,289,761 522,613 11,325,059
---------- ---------- -------- -----------
EXPENSES:
Investment advisory
fees (Note E)......... 195,796 416,462 67,672 821,513
Distribution expenses
(Note E).............. 65,265 189,301 28,197 0
Transfer agent fees.... 38,200 36,087 9,566 41,255
Administration fees
(Note E).............. 15,232 41,966 6,481 113,018
Accounting fees........ 36,707 56,487 13,577 75,369
Registration expenses.. 20,515 32,436 12,603 43,536
Custodian fees......... 9,374 19,882 4,314 45,361
Professional fees...... 19,897 20,163 19,385 20,474
Amortization of
organization costs
(Note A).............. 3,342 5,011 5,011 5,011
Report to shareholder
expense............... 3,793 7,317 2,031 16,687
Trustees fees (Note E). 1,781 1,781 1,781 1,781
Miscellaneous expenses. 1,829 4,617 1,325 17,183
---------- ---------- -------- -----------
Total expenses....... 411,731 831,510 171,943 1,201,188
Expenses reimbursed
(Note E).............. (85,405) (225,757) (70,437) (174,325)
---------- ---------- -------- -----------
Net expenses......... 326,326 605,753 101,506 1,026,863
---------- ---------- -------- -----------
NET INVESTMENT INCOME.... 562,623 4,684,008 421,107 10,298,196
---------- ---------- -------- -----------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS:
Net realized gain
(loss) on investments. 2,720,967 (21,824) 30,220 0
Net change in
unrealized
appreciation/
depreciation on
investments........... 1,750,771 (427,461) (54,373) 0
---------- ---------- -------- -----------
Net realized and
unrealized gain
(loss) on
investments......... 4,471,738 (449,285) (24,153) 0
---------- ---------- -------- -----------
INCREASE IN NET ASSETS
FROM OPERATIONS......... $5,034,361 $4,234,723 $396,954 $10,298,196
========== ========== ======== ===========
</TABLE>
See accompanying notes to financial statements.
43
<PAGE>
CT&T FUNDS
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONTAG & CALDWELL
GROWTH
FUND
-------------------------
FOR THE
FOR THE PERIOD
YEAR ENDED ENDED
10/31/96(B) 10/31/95(A)
------------ -----------
<S> <C> <C>
OPERATIONS:
Net investment income (loss)...................... $ (28,035) $ 38,617
Net realized gain (loss) on investments........... 2,171,050 (274,112)
Net change in unrealized appreciation/
depreciation on investments...................... 26,825,183 5,888,103
------------ -----------
Increase in net assets from operations............ 28,968,198 5,652,608
------------ -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREOWNERS:
From net investment income--Retail Class.......... 0 (37,462)
In excess of net investment income:
Retail Class.................................... (28,975) 0
Institutional Class............................. (45,883) 0
From net realized gain on investments--Retail
Class............................................ (24,401) 0
------------ -----------
Total distributions............................... (99,259) (37,462)
------------ -----------
CAPITAL SHARE TRANSACTIONS--NOTE C 149,425,907 34,739,903
------------ -----------
Total increase in net assets...................... 178,294,846 40,355,049
NET ASSETS:
Beginning of period............................... 40,355,049 0
------------ -----------
End of period (including undistributed
(distributions in excess of) net investment
income of ($73,703) and $1,155, respectively).... $218,649,895 $40,355,049
============ ===========
</TABLE>
See accompanying notes to financial statements.
44
<PAGE>
CT&T FUNDS
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHICAGO TRUST
GROWTH & INCOME
FUND
--------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
10/31/96 10/31/95
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income............................ $ 1,451,728 $ 231,325
Net realized gain on investments................. 4,305,113 1,384,988
Net change in unrealized
appreciation/depreciation on investments........ 39,311,048 3,775,287
------------ ------------
Increase in net assets from operations........... 45,067,889 5,391,600
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREOWNERS:
From net investment income....................... (1,444,903) (119,541)
From net realized gain on investments............ (976,557) 0
------------ ------------
Total distributions.............................. (2,421,460) (119,541)
------------ ------------
CAPITAL SHARE TRANSACTIONS--NOTE C................. (9,808,817) 154,741,840
------------ ------------
Total increase in net assets..................... 32,837,612 160,013,899
NET ASSETS:
Beginning of year................................ 172,295,705 12,281,806
------------ ------------
End of year (including undistributed net
investment income of $133,556 and $126,356,
respectively.................................... $205,133,317 $172,295,705
============ ============
</TABLE>
See accompanying notes to financial statements.
45
<PAGE>
CT&T FUNDS
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHICAGO TRUST TALON CHICAGO TRUST ASSET
FUND ALLOCATION FUND
------------------------ --------------------------
FOR THE FOR THE FOR THE YEAR FOR THE
YEAR ENDED YEAR ENDED ENDED PERIOD ENDED
10/31/96 10/31/95 10/31/96 10/31/95(C)
----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income... $ 42,177 $ 61,773 $ 4,547,650 $ 467,870
Net realized gain on
investments............ 1,453,661 667,438 2,227,691 5,993
Net change in unrealized
appreciation/
depreciation on
investments............ 1,649,993 774,370 17,768,218 367,504
----------- ----------- ------------ ------------
Increase in net assets
from operations........ 3,145,831 1,503,581 24,543,559 841,367
----------- ----------- ------------ ------------
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREOWNERS:
From net investment
income................. (35,795) (67,302) (4,421,473) 0
From net realized gain
on investments......... (634,240) 0 (7,294) 0
----------- ----------- ------------ ------------
Total distributions..... (670,035) (67,302) (4,428,767) 0
----------- ----------- ------------ ------------
CAPITAL SHARE
TRANSACTION - NOTE C..... 4,404,025 4,746,155 (16,231,815) 151,979,099
----------- ----------- ------------ ------------
Total increase in net
assets................. 6,879,821 6,182,434 3,882,977 152,820,466
NET ASSETS:
Beginning of period..... 10,537,854 4,355,420 152,820,466 0
----------- ----------- ------------ ------------
End of period (including
undistributed net
investment income of
$8,945, $2,563,
$567,503 and $466,569,
respectively).......... $17,417,675 $10,537,854 $156,703,443 $152,820,466
=========== =========== ============ ============
</TABLE>
See accompanying notes to financial statements.
46
<PAGE>
CT&T FUNDS
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONTAG & CALDWELL
BALANCED FUND CHICAGO TRUST BOND FUND
--------------------------- ------------------------
FOR THE FOR THE PERIOD FOR THE FOR THE
YEAR ENDED ENDED YEAR ENDED YEAR ENDED
10/31/96 10/31/95(D) 10/31/96 10/31/95
----------- -------------- ----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income.. $ 562,623 $ 272,458 $ 4,684,008 $ 1,459,879
Net realized gain
(loss) on investments. 2,720,967 (61,733) (21,824) 98,947
Net change in
unrealized
appreciation/
depreciation on
investments........... 1,750,771 2,212,053 (427,461) 1,375,091
----------- ----------- ----------- -----------
Increase in net assets
from operations....... 5,034,361 2,422,778 4,234,723 2,933,917
----------- ----------- ----------- -----------
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREOWNERS:
From net investment
income................ (544,785) (216,826) (4,576,113) (1,276,210)
From net realized gain
on investments........ 0 0 (26,301) 0
----------- ----------- ----------- -----------
Total distributions.... (544,785) (216,826) (4,602,414) (1,276,210)
----------- ----------- ----------- -----------
CAPITAL SHARE
TRANSACTIONS - NOTE C... 5,074,921 19,702,222 9,088,084 56,287,035
----------- ----------- ----------- -----------
Total increase in net
assets................ 9,564,497 21,908,174 8,720,393 57,944,742
NET ASSETS:
Beginning of period.... 21,908,174 0 70,490,335 12,545,593
----------- ----------- ----------- -----------
End of period
(including
undistributed net
investment income of
$70,787, $54,957,
$258,643 and $194,531,
respectively)......... $31,472,671 $21,908,174 $79,210,728 $70,490,335
=========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
47
<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 YEAR FOR THE YEAR
YEAR ENDED YEAR ENDED ENDED ENDED
10/31/96 10/31/95 10/31/96 10/31/95
----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income.. $ 421,107 $ 399,438 $ 10,298,196 $ 7,979,144
Net realized gain
(loss) on investments. 30,220 (120,833) 0 0
Net change in
unrealized
appreciation/
depreciation on
investments........... (54,373) 695,561 0 0
----------- ----------- ------------ ------------
Increase in net assets
from operations....... 396,954 974,166 10,298,196 7,979,144
----------- ----------- ------------ ------------
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREOWNERS:
From net investment
income................ (419,021) (394,006) (10,298,196) (7,979,144)
----------- ----------- ------------ ------------
CAPITAL SHARE
TRANSACTIONS--NOTE C.... (471,269) 637,249 20,460,302 83,146,083
----------- ----------- ------------ ------------
Total increase
(decrease) in net
assets................ (493,336) 1,217,409 20,460,302 83,146,083
NET ASSETS:
Beginning of year...... 11,679,498 10,462,089 206,075,314 122,929,231
----------- ----------- ------------ ------------
End of year (including
undistributed net
investment income of
$23,870, $21,784, $0
and $0, respectively). $11,186,162 $11,679,498 $226,535,616 $206,075,314
=========== =========== ============ ============
</TABLE>
(a) Montag & Caldwell Growth Fund Retail Class commenced investment operations
on November 2, 1994.
(b) Montag & Caldwell Growth Fund Institutional Class commenced investment
operations on June 28, 1996.
(c) Chicago Trust Asset Allocation Fund commenced investment operations on
September 21, 1995.
(d) Montag & Caldwell Balanced Fund commenced investment operations on November
2, 1994.
See accompanying notes to financial statements.
48
<PAGE>
CT&T FUNDS
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
The table below sets forth financial data for a share of beneficial interest
outstanding throughout each period presented.
<TABLE>
<CAPTION>
MONTAG & CALDWELL
GROWTH FUND
-------------------------------------------
RETAIL CLASS INSTITUTIONAL CLASS
----------------------- -------------------
YEAR ENDED PERIOD ENDED PERIOD ENDED
10/31/96 10/31/95(A) 10/31/96(B)
---------- ------------ -------------------
<S> <C> <C> <C>
Net Asset Value, beginning of
period............................ $ 13.16 $ 10.00 $ 15.59
-------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income............ 0.00 0.02 0.02
Net realized and unrealized gain
on investments.................. 3.93 3.16 1.49
-------- ------- -------
Total from investment
operations.................... 3.93 3.18 1.51
LESS DISTRIBUTIONS FROM AND IN
EXCESS OF NET INVESTMENT INCOME. (0.01) (0.02) (0.02)
-------- ------- -------
Net Asset Value, end of period..... $ 17.08 $ 13.16 $ 17.08
======== ======= =======
TOTAL RETURN/2/.................... 29.91% 31.87% 9.67%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
000's).......................... $166,243 $40,355 $52,407
Ratio of expenses to average net
assets before reimbursement of
expenses by Advisor/1/.......... 1.32% 1.87% 0.98%
Ratio of expenses to average net
assets after reimbursement of
expenses by Advisor/1/.......... 1.28% 1.30% 0.98%
Ratio of net investment income to
average net assets before
reimbursement of expenses by
Advisor/1/...................... -0.10% -0.36% 0.17%
Ratio of net investment income to
average net assets after
reimbursement of expenses by
Advisor/1/...................... -0.06% 0.20% 0.17%
Portfolio turnover/2/............ 26.36% 34.46% 26.36%
Average commission rate paid..... $0.0639 N/R $0.0639
</TABLE>
See accompanying notes to financial statements.
49
<PAGE>
CT&T FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
- -------------------------------------------------------------------------------
The table below sets forth financial data for a share of beneficial interest
outstanding throughout each period presented.
<TABLE>
<CAPTION>
CHICAGO TRUST
GROWTH & INCOME FUND
----------------------------------
YEAR YEAR PERIOD
ENDED ENDED ENDED
10/31/96 10/31/95 10/31/94(E)
-------- -------- -----------
<S> <C> <C> <C>
Net Asset Value, beginning of period........ $ 12.90 $ 10.11 $ 10.00
-------- -------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income..................... 0.11 0.09 0.07
Net realized and unrealized gain on
investments.............................. 3.34 2.79 0.10
-------- -------- -------
Total from investment operations........ 3.45 2.88 0.17
LESS DISTRIBUTIONS
Dividends from net investment income...... (0.11) (0.09) (0.06)
Distributions from net realized gain on
investments.............................. (0.07) 0.00 0.00
-------- -------- -------
Total distributions..................... (0.18) (0.09) (0.06)
-------- -------- -------
Net Asset Value, end of period.............. $ 16.17 $ 12.90 $ 10.11
======== ======== =======
TOTAL RETURN/2/............................. 26.98% 28.66% 1.73%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's)...... $205,133 $172,296 $12,282
Ratio of expenses to average net assets
before reimbursement of expenses by
Advisor/1/............................... 1.15% 1.50% 2.21%
Ratio of expenses to average net assets
after reimbursement of expenses by
Advisor/1/............................... 1.00% 1.09%/3/ 1.20%
Ratio of net investment income to average
net assets before reimbursement of
expenses by Advisor/1/................... 0.62% 0.33% -0.15%
Ratio of net investment income to average
net assets after reimbursement of
expenses by Advisor/1/................... 0.77% 0.74% 0.86%
Portfolio turnover/2/..................... 25.48% 9.00% 37.01%
Average commission rate paid.............. $0.0571 N/R N/R
</TABLE>
See accompanying notes to financial statements.
50
<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
TALON ASSET ALLOCATION
FUND FUND
------------------------------- ---------------------
YEAR YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
10/31/96 10/31/95 10/31/94(F) 10/31/96 10/31/95(C)
-------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning
of period................. $ 12.07 $ 10.25 $10.00 $ 8.43 $ 8.34
------- ------- ------ -------- --------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income.... 0.04 0.09 0.02 0.27 0.03
Net realized and
unrealized gain on
investments............. 3.01 1.84 0.23 1.16 0.06
------- ------- ------ -------- --------
Total from investment
operations............ 3.05 1.93 0.25 1.43 0.09
LESS DISTRIBUTIONS
Dividends from net
investment income....... (0.03) (0.11) 0.00 (0.26) 0.00
Distributions from net
realized gain on
investments............. (0.70) 0.00 0.00 0.00 0.00
------- ------- ------ -------- --------
Total distributions.... (0.73) (0.11) 0.00 (0.26) 0.00
------- ------- ------ -------- --------
Net Asset Value, end of
period.................... $ 14.39 $ 12.07 $10.25 $ 9.60 $ 8.43
======= ======= ====== ======== ========
TOTAL RETURN/2/............ 26.51% 18.92% 2.50% 17.21% 1.08%
RATIOS/SUPPLEMENTAL DATA...
Net assets, end of period
(in 000's).............. $17,418 $10,538 $4,355 $156,703 $152,820
Ratio of expenses to
average net assets
before reimbursement of
expenses by Advisor/1/.. 1.98% 3.04% 7.82% 1.17% 1.19%
Ratio of expenses to
average net assets after
reimbursement of
expenses by Advisor/1/.. 1.30% 1.30% 1.30% 1.00% 1.00%
Ratio of net investment
income to average net
assets before
reimbursement of
expenses by Advisor/1/.. -0.38% -0.97% -4.13% 2.79% 2.56%
Ratio of net investment
income to average net
assets after
reimbursement of
expenses by Advisor/1/.. 0.30% 0.77% 2.39% 2.96% 2.73%
Portfolio turnover/2/.... 126.83% 229.43% 33.66% 34.29% 0.72%
Average commission rate
paid.................... $0.0612 N/R N/R $0.0596 N/R
</TABLE>
See accompanying notes to financial statements.
51
<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
--------------------- -------------------------------
YEAR PERIOD YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
10/31/96 10/31/95(D) 10/31/96 10/31/95 10/31/94(G)
-------- ----------- -------- -------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning
of period.................. $ 12.12 $ 10.00 $ 9.94 $ 9.21 $ 10.00
------- ------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income..... 0.27 0.26 0.60 0.60 0.50
Net realized and
unrealized gain (loss) on
investments.............. 2.17 2.09 (0.05) 0.73 (0.82)
------- ------- ------- ------- -------
Total from investment
operations............. 2.44 2.35 0.55 1.33 (0.32)
LESS DISTRIBUTIONS FROM
NET INVESTMENT INCOME.... (0.27) (0.23) (0.60) (0.60) (0.47)
------- ------- ------- ------- -------
Net Asset Value, end of
period..................... $ 14.29 $ 12.12 $ 9.89 $ 9.94 $ 9.21
======= ======= ======= ======= =======
TOTAL RETURN/2/............. 20.37% 23.75% 5.76% 14.89% -3.23%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's)............... $31,473 $21,908 $79,211 $70,490 $12,546
Ratio of expenses to
average net assets before
reimbursement of expenses
by Advisor/1/............ 1.58% 2.50% 1.10% 1.54% 2.02%
Ratio of expenses to
average net assets after
reimbursement of expenses
by Advisor/1/............ 1.25% 1.25% 0.80% 0.80% 0.80%
Ratio of net investment
income to average net
assets before
reimbursement of expenses
by Advisor/1/............ 1.83% 1.38% 5.89% 5.78% 4.83%
Ratio of net investment
income to average net
assets after
reimbursement of expenses
by Advisor/1/............ 2.16% 2.63% 6.19% 6.52% 6.05%
Portfolio turnover/2/..... 43.58% 27.33% 41.75% 68.24% 20.73%
Average commission rate
paid..................... $0.0644 N/R N/R N/R N/R
</TABLE>
See accompanying notes to financial statements.
52
<PAGE>
CT&T FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
- -------------------------------------------------------------------------------
The table below sets forth financial data for a share of beneficial interest
outstanding throughout each period presented.
<TABLE>
<CAPTION>
CHICAGO TRUST
MUNICIPAL BOND FUND
-------------------------------
YEAR YEAR PERIOD
ENDED ENDED ENDED
10/31/96 10/31/95 10/31/94(H)
-------- -------- -----------
<S> <C> <C> <C>
Net Asset Value, beginning of period............. $ 10.08 $ 9.56 $ 10.00
------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income.......................... 0.38 0.35 0.27
Net realized and unrealized gain (loss) on
investments................................... (0.02) 0.52 (0.46)
------- ------- -------
Total from investment operations............. 0.36 0.87 (0.19)
LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME.. (0.38) (0.35) (0.25)
------- ------- -------
Net Asset Value, end of period................... $ 10.06 $ 10.08 $ 9.56
======= ======= =======
TOTAL RETURN/2/.................................. 3.59% 9.29% -1.92%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's)........... $11,186 $11,679 $10,462
Ratio of expenses to average net assets before
reimbursement of expenses by Advisor/1/....... 1.53% 2.16% 2.09%
Ratio of expenses to average net assets after
reimbursement of expenses by Advisor/1/....... 0.90% 0.90% 0.90%
Ratio of net investment income to average net
assets before reimbursement of expenses by
Advisor/1/.................................... 3.11% 2.37% 1.90%
Ratio of net investment income to average net
assets after reimbursement of expenses by
Advisor/1/.................................... 3.74% 3.63% 3.09%
Portfolio turnover/2/.......................... 27.47% 42.81% 14.85%
</TABLE>
See accompanying notes to financial statements.
53
<PAGE>
CT&T FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
- -------------------------------------------------------------------------------
The table below sets forth financial data for a share of beneficial interest
outstanding throughout each period presented.
<TABLE>
<CAPTION>
CHICAGO TRUST MONEY
MARKET FUND
----------------------------------
YEAR YEAR PERIOD
ENDED ENDED ENDED
10/31/96 10/31/95 10/31/94(I)
-------- -------- -----------
<S> <C> <C> <C>
Net Asset Value, beginning of period........ $ 1.00 $ 1.00 $ 1.00
-------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income..................... 0.05 0.05 0.03
-------- -------- --------
LESS DISTRIBUTIONS FROM NET INVESTMENT
INCOME................................... (0.05) (0.05) (0.03)
-------- -------- --------
Net Asset Value, end of period.............. $ 1.00 $ 1.00 $ 1.00
======== ======== ========
TOTAL RETURN/2/............................. 5.14% 5.56% 3.20%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's)...... $226,536 $206,075 $122,929
Ratio of expenses to average net assets
before reimbursement of expenses by
Advisor/1/............................... 0.59% 0.63% 0.64%
Ratio of expenses to average net assets
after reimbursement of expenses by
Advisor/1/............................... 0.50% 0.43%/4/ 0.40%
Ratio of net investment income to average
net assets before reimbursement of
expenses by Advisor/1/................... 4.93% 5.24% 3.49%
Ratio of net investment income to average
net assets after reimbursement of
expenses by Advisor/1/................... 5.02% 5.44% 3.73%
</TABLE>
(a) Montag & Caldwell Growth Fund Retail Class commenced investment operations
on November 2, 1994.
(b) Montag & Caldwell Growth Fund Institutional Class commenced investment
operations on June 28, 1996.
(c) Chicago Trust Asset Allocation Fund commenced investment operations on
September 21, 1995.
(d) Montag & Caldwell Balanced Fund commenced investment operations on
November 2, 1994.
(e) Chicago Trust Growth & Income Fund commenced investment operations on
December 13, 1993.
(f) Chicago Trust Talon Fund commenced investment operations on September 19,
1994.
(g) Chicago Trust Bond Fund commenced investment operations on December 13,
1993.
(h) Chicago Trust Municipal Bond Fund commenced investment operations on
December 13, 1993.
(i) Chicago Trust Money Market Fund commenced investment operations on
December 14, 1993.
1 Annualized
2 Not annualized
3 The Advisor's expense reimbursement level, which reduces the net expense
ratio, changed from 1.20% to 1.00% on September 21, 1995.
4 The Advisor's expense reimbursement level, which reduces the net expense
ratio, changed from .40% to .50% on July 12, 1995.
N/R Not required
See accompanying notes to financial statements.
54
<PAGE>
CT&T FUNDS
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1996
- -------------------------------------------------------------------------------
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 an
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 Fund seeks long-term capital appreciation consistent with
investments primarily in a combination of equity, convertible, fixed income,
and short-term securities. Capital appreciation is emphasized, and generation
of income is secondary. Montag & Caldwell, Inc. is the Investment Advisor for
the Fund, which commenced investment operations on November 2, 1994. Effective
June 18, 1996, the Fund offered two classes of shares, Class I (Institutional)
shares and Class N (Retail) shares.
The Growth & Income Fund seeks long-term total return through a combination of
capital appreciation and current income. In seeking to achieve its investment
objective, the Fund invests primarily in common stocks, preferred stocks,
securities convertible into common stocks, and fixed income securities. The
Chicago Trust Company ("Chicago Trust") is the Investment Advisor for the
Fund, which commenced investment operations on December 13, 1993.
The Talon Fund seeks long-term total return through capital appreciation. The
Fund will invest primarily in stocks of companies with capitalization levels
believed by Talon Asset Management, Inc. (Talon) to have prospects for capital
appreciation. The Fund, which commenced investment operations on September 19,
1994, may also invest in preferred stock and debt securities, including those
which may be convertible into common stock. Chicago Trust is the Investment
Advisor for the Fund with Talon as Sub-Investment Advisor.
The Asset Allocation Fund seeks growth of capital with current income through
asset allocation. The Fund seeks to achieve this objective by holding a
varying combination of generally two or more of the following investment
categories: common stocks (both dividend and non-dividend paying); preferred
stocks; convertible preferred stocks; fixed income securities, including bonds
and bonds convertible into common stocks; and short-term interest-bearing
obligations. Chicago Trust is the Investment Advisor for the Fund, which
commenced investment operations on September 21, 1995.
The Balanced Fund seeks long-term total return through investment primarily in
a combination of equity, fixed income, and short-term securities. The
allocation between asset classes may vary over time in accordance with the
expected rates of return of each asset class; however, primary emphasis will
be placed upon selection of particular investments as opposed to allocation of
assets. Montag & Caldwell, Inc. is the Investment Advisor for the Fund, which
commenced investment operations on November 2, 1994.
The Bond Fund seeks high current income consistent with what Chicago Trust
believes to be prudent risk of capital. The Fund will primarily invest in a
broad range of bonds and other fixed income securities (bonds and debentures)
with an average weighted portfolio maturity between three and ten years.
Chicago Trust is the Investment Advisor for the Fund, which commenced
investment operations on December 13, 1993.
The Municipal Bond Fund seeks a high level of current interest income exempt
from Federal income taxes consistent with the conservation of capital. The
Fund will seek to achieve its objective by investing substantially all of its
assets in a diversified portfolio of primarily intermediate-term municipal
debt obligations. Chicago Trust is the Investment Advisor for the Fund, which
commenced investment operations on December 13, 1993.
55
<PAGE>
CT&T FUNDS
NOTES TO FINANCIAL STATEMENTS - (CONTINUED) OCTOBER 31, 1996
- -------------------------------------------------------------------------------
The Money Market Fund seeks to provide as high a level of current interest
income as is consistent with maintaining liquidity and stability of principal.
The Fund seeks to achieve its objective by investing in short-term, high
quality, U.S. dollar-denominated money market instruments. Chicago Trust is
the Investment Advisor for the Fund, which commenced investment operations on
December 14, 1993.
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
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 has 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. The 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 the 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.
56
<PAGE>
CT&T FUNDS
NOTES TO FINANCIAL STATEMENTS - (CONTINUED) OCTOBER 31, 1996
- -------------------------------------------------------------------------------
Transactions in options for the Talon Fund for the year ended October 31,
1996 were as follows:
<TABLE>
<CAPTION>
CONTRACTS PREMIUM
--------- ---------
<S> <C> <C>
Outstanding at October 31, 1995........................ 30 $ (28,650)
Options purchased (Net)................................ 165 (165,325)
Options terminated in closing transactions (Net)....... (125) 137,125
Options expired (Net).................................. (70) 56,850
---- ---------
Outstanding at October 31, 1996........................ 0 $ 0
==== =========
</TABLE>
(4) MORTGAGE BACKED SECURITIES: The Asset Allocation Fund, Balanced Fund
and the Bond Fund may 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.
The Asset Allocation Fund, Balanced Fund and the Bond Fund may 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. 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 may utilize Interest Only (IO)
securities to increase the diversification of the portfolio 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, 1996, the losses amounted to $97,257 for the Municipal Bond
Fund. These losses will expire October 31, 2003.
57
<PAGE>
CT&T FUNDS
NOTES TO FINANCIAL STATEMENTS - (CONTINUED) OCTOBER 31, 1996
- -------------------------------------------------------------------------------
(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.
(9) USE OF ESTIMATES: The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from
those estimates.
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 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. Differences in dividends per share between classes of the Growth Fund
are due to different class expenses. For the year ended October 31, 1996,
100.0% of the income distributions made by the Municipal Bond Fund were exempt
from federal income taxes. Additionally during the period, the Growth & Income
Fund and the Growth Fund paid long-term capital gains of $976,557 and $24,401,
respectively. In January 1997, the Funds will provide tax information to
shareholders for the 1996 calendar year.
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 and temporary book and tax basis differences. Distributions from net
realized gains for book purposes may include short-term capital gains which
are included as ordinary income for tax purposes. Temporary differences are
primarily the result of wash sales treatment for tax reporting purposes.
Permanent book and tax differences of $25,243, $29,844 and $2,008 were
reclassified at October 31, 1996 from accumulated net realized gain (loss) on
investments to undistributed net investment income in the Asset Allocation
Fund, the Bond Fund and the Balanced Fund, respectively, due to losses on
paydown adjustments from mortgage backed securities. Distributions of $13,939
were reclassified from undistributed net investment income to accumulated net
realized gain (loss) on investments in the Bond Fund due to sales of interest
only securities. Distributions of $28,035 in the Growth Fund and $375 in the
Growth & Income Fund were reclassified from undistributed net investment
income to capital paid-in due to a net operating loss in the Growth Fund and
excise taxes paid in the Growth & Income Fund.
58
<PAGE>
CT&T FUNDS
NOTES TO FINANCIAL STATEMENTS - (CONTINUED) OCTOBER 31, 1996
- -------------------------------------------------------------------------------
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 year ended October 31,
1996 were as follows:
<TABLE>
<CAPTION>
GROWTH FUND-RETAIL CLASS GROWTH FUND-INSTITUTIONAL CLASS
------------------------------------------------------ ------------------------------------------------
YEAR ENDED PERIOD ENDED PERIOD ENDED
OCTOBER 31, 1996 OCTOBER 31, 1995 OCTOBER 31, 1996
-------------------------- -------------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SHARES SOLD....... 7,779,869 $118,083,887 3,647,616 $ 41,552,317 3,302,194 $51,795,147
SHARES ISSUED
THROUGH
REINVESTMENT OF
DIVIDENDS........ 3,770 53,046 3,223 37,462 2,812 45,883
SHARES REDEEMED... (1,115,729) (16,878,640) (585,197) (6,849,876) (236,988) (3,673,416)
------------ ------------ ------------ ------------ ----------- -----------
NET INCREASE..... 6,667,910 $101,258,293 3,065,642 $ 34,739,903 3,068,018 $48,167,614
============ ============ ============ ============ =========== ===========
<CAPTION>
GROWTH & INCOME FUND TALON FUND
------------------------------------------------------ ------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, 1996 OCTOBER 31, 1995 OCTOBER 31, 1996 OCTOBER 31, 1995
-------------------------- -------------------------- ---------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------ --------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SHARES SOLD....... 2,994,709 $ 43,023,005 13,916,472 $177,441,408 336,046 $ 4,424,049 549,448 $ 5,975,992
SHARES ISSUED
THROUGH
REINVESTMENT OF
DIVIDENDS........ 170,324 2,391,580 2,987 35,488 55,106 662,762 6,101 66,183
SHARES REDEEMED... (3,829,976) (55,223,402) (1,781,094) (22,735,056) (54,225) (682,786) (107,228) (1,296,020)
------------ ------------ ------------ ------------ --------- ----------- ----------- -----------
NET INCREASE
(DECREASE)...... (664,943) ($ 9,808,817) 12,138,365 $154,741,840 336,927 $ 4,404,025 448,321 $ 4,746,155
============ ============ ============ ============ ========= =========== =========== ===========
<CAPTION>
ASSET ALLOCATION FUND BALANCED FUND
------------------------------------------------------ ------------------------------------------------
YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED
OCTOBER 31, 1996 OCTOBER 31, 1995 OCTOBER 31, 1996 OCTOBER 31, 1995
-------------------------- -------------------------- ---------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------ --------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SHARES SOLD....... 2,932,312 $ 26,178,729 18,965,446 $158,962,203 1,269,601 $17,019,049 1,891,915 $20,642,834
SHARES ISSUED
THROUGH
REINVESTMENT OF
DIVIDENDS........ 495,015 4,428,767 0 0 41,681 544,624 19,547 216,825
SHARES REDEEMED... (5,245,177) (46,839,311) (830,910) (6,983,104) (916,526) (12,488,752) (104,087) (1,157,437)
------------ ------------ ------------ ------------ --------- ----------- ----------- -----------
NET INCREASE
(DECREASE)...... (1,817,850) ($16,231,815) 18,134,536 $151,979,099 394,756 $ 5,074,921 1,807,375 $19,702,222
============ ============ ============ ============ ========= =========== =========== ===========
<CAPTION>
BOND FUND MUNICIPAL BOND FUND
------------------------------------------------------ ------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, 1996 OCTOBER 31, 1995 OCTOBER 31, 1996 OCTOBER 31, 1995
-------------------------- -------------------------- ---------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------ --------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SHARES SOLD....... 1,866,993 $ 18,394,655 7,252,380 $ 71,206,866 39,198 $ 394,557 110,913 $ 1,084,257
SHARES ISSUED
THROUGH
REINVESTMENT OF
DIVIDENDS........ 422,144 4,131,546 57,705 565,418 2,203 22,047 1,761 17,225
SHARES REDEEMED... (1,373,273) (13,438,117) (1,580,817) (15,485,249) (87,989) (887,873) (47,826) (464,233)
------------ ------------ ------------ ------------ --------- ----------- ----------- -----------
NET INCREASE
(DECREASE)...... 915,864 $ 9,088,084 5,729,268 $ 56,287,035 (46,588) ($ 471,269) 64,848 $ 637,249
============ ============ ============ ============ ========= =========== =========== ===========
<CAPTION>
MONEY MARKET FUND
------------------------------------------------------
YEAR ENDED YEAR ENDED
OCTOBER 31, 1996 OCTOBER 31, 1995
-------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SHARES SOLD....... 494,444,216 $494,444,216 684,248,485 $684,248,485
SHARES ISSUED
THROUGH
REINVESTMENT OF
DIVIDENDS........ 331,446 331,446 165,085 165,085
SHARES REDEEMED... (474,315,360) (474,315,360) (601,267,487) (601,267,487)
------------ ------------ ------------ ------------
NET INCREASE..... 20,460,302 $ 20,460,302 83,146,083 $ 83,146,083
============ ============ ============ ============
</TABLE>
59
<PAGE>
CT&T FUNDS
NOTES TO FINANCIAL STATEMENTS - (CONTINUED) OCTOBER 31, 1996
- -------------------------------------------------------------------------------
At October 31, 1996, Chicago Trust owned 2,500, 2,500, and 1,002,500 shares of
the Growth & Income Fund, the Bond Fund and the Municipal Bond Fund,
respectively.
NOTE (D) INVESTMENT TRANSACTIONS: Aggregate purchases and proceeds from sales
of investment securities (other than short-term investments) for the year
ended October 31, 1996 were:
<TABLE>
<CAPTION>
AGGREGATE PROCEEDS
PURCHASES FROM SALES
------------ -----------
<S> <C> <C>
GROWTH FUND............................................ $156,105,350 $26,094,087
GROWTH & INCOME FUND................................... 44,579,057 53,468,430
TALON FUND............................................. 17,354,186 14,055,006
ASSET ALLOCATION FUND.................................. 48,077,805 56,037,485
BALANCED FUND.......................................... 15,592,814 11,047,812
BOND FUND.............................................. 38,421,652 29,181,572
MUNICIPAL BOND FUND.................................... 3,271,064 3,016,545
</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
(Institutional Class and Retail Class), 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 0.98%, 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 year ended October 31,
1996, the Advisors reimbursed expenses of $34,647 for the Growth Fund,
$285,994 for the Growth & Income Fund, $95,297 for the Talon Fund, $260,144
for the Asset Allocation Fund, $85,405 for the Balanced Fund, $225,757 for the
Bond Fund, $70,437 for the Municipal Bond Fund and $174,325 for the Money
Market Fund.
Effective November 15, 1993, FPS Services, Inc. was appointed as the Funds'
Administrator. Under its Sub-Administration Agreement with the Funds, FPS
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. FPS Services,
Inc. also retains a portion of the Funds' custody fees.
FPS 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 Retail Class, 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 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. The Growth Fund Institutional Class and the Money
Market Fund do not have a distribution plan.
At October 31, 1996, the transfer agency fees for the two classes of shares of
the Growth Fund were as follows: the Retail Class had incurred $35,197 and the
Institutional Class had incurred $780.
Certain officers and trustees of the Funds are also officers and directors of
The Chicago Trust Company. The Funds do not compensate its officers or
affiliated trustees. Effective January 1, 1996, the Company pays each
unaffiliated trustee $1,000 per Board of Trustees meeting attended and an
annual retainer of $1,000.
60
<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, 1996, and the
related statements of operations for the year then ended, the statements of
changes in net assets for each of the periods presented in the two-year period
then ended, and the financial highlights for each of the periods presented.
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, 1996, 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, 1996,
the results of their operations for the year then ended, the changes in their
net assets for each of the periods presented in the two-year period then
ended, and the financial highlights for each of the periods presented, in
conformity with generally accepted accounting principles.
/s/ KPMG Peat Marwick LLP
Chicago, Illinois
December 16, 1996
61
<PAGE>
CT&T FUNDS -- TRUSTEES & OFFICERS
- --------------------------------------------------------------------------------
TRUSTEES OFFICERS
Leonard F. Amari, Trustee* Kenneth C. Anderson
President
Stuart D. Bilton, Chairman
David F. Seng
Senior Vice President
Dorothea C. Gilliam, Trustee
Thomas J. Adams, III
Gregory T. Mutz, Trustee* Vice President
Nathan Shapiro, Trustee* Gerald F. Dillenburg
Vice President, Secretary and Treasurer
* Unaffiliated Trustees
ADVISORS CUSTODIAN
The Chicago Trust Company UMB Bank, N.A.
171 North Clark Street 928 Grand Avenue
Chicago, IL 60601-3294 Kansas City, MO 64141
Montag & Caldwell, Inc. LEGAL COUNSEL
1100 Atlanta Financial Center Gardner, Carton & Douglas
3343 Peachtree Road, NE 321 North Clark Street
Atlanta, GA 30326-1450 Suite 3400
Chicago, IL 60610
UNDERWRITER/
SHAREHOLDER SERVICES AUDITOR
FPS Services, Inc. KPMG Peat Marwick LLP
3200 Horizon Drive 303 East Wacker Drive
King of Prussia, PA 19406 Chicago, IL 60601
