<PAGE>
APRIL 30, 1998
SEMI-
ANNUAL
REPORT
MONTAG & CALDWELL GROWTH FUND
CHICAGO TRUST GROWTH & INCOME FUND
CHICAGO TRUST TALON FUND
CHICAGO TRUST BALANCED FUND
MONTAG & CALDWELL BALANCED FUND
CHICAGO TRUST BOND FUND
CHICAGO TRUST MUNICIPAL BOND FUND
CHICAGO TRUST MONEY MARKET FUND
[LOGO] ALLEGHANY FUNDS
<PAGE>
MANAGING YOUR MONEY
THROUGH PRINCIPLES THAT ENDURE
CORPORATE PROFITS? MERGERS AND ACQUISITIONS? POLITICS? ATTRACTIVE
VALUATIONS? THERE ARE NUMEROUS GOOD REASONS FOR CHOOSING VARIOUS INVESTMENT
OPPORTUNITIES - AND AT ALLEGHANY FUNDS, OUR PORTFOLIO MANAGERS FOLLOW BOTH THE
FUNDS' STATED OBJECTIVES AND THEIR INDIVIDUAL CULTIVATED PREFERENCES. YET AS A
GROUP, WE BELIEVE OUR MANAGERS ARE OF LIKE MINDS WHEN IT COMES TO FOLLOWING
TIME-HONORED INVESTMENT PRINCIPLES. SIMPLY PUT, THEY MAKE THEIR SELECTIONS BASED
ON SUBSTANCE, NOT FADS.
TO ILLUSTRATE THIS, WE RECENTLY POLLED OUR PORTFOLIO MANAGERS TO FIND OUT
WHAT THEY WILL LOOK FOR (IN ADDITION TO THE CUSTOMARY QUALITATIVE AND
QUANTITATIVE ANALYSIS) FOR THEIR PORTFOLIO SELECTIONS DURING THE SECOND HALF OF
1998. AS WE EXPECTED, THEY WERE IN CLOSE AGREEMENT THAT THE FOLLOWING FIVE
TRAITS ARE MOST IMPORTANT:
1. PRICE (NOT TO MENTION PRICE, PRICE, PRICE AND PRICE) REMAINS A KEY FACTOR.
2. EXPECTED RETURNS ARE CRUCIAL SHOULD INTEREST RATES CHANGE.
3. GOOD DIVERSIFICATION IS MORE IMPORTANT THAN EVER IN AN INCREASINGLY
VOLATILE MARKET.
4. THE ABILITY TO ACHIEVE CONSISTENT EARNINGS GROWTH SHOULD BE EMPHASIZED.
5. IT'S WISE TO INCLUDE SECURITIES THAT REDUCE THE VOLATILITY OF THE PORTFOLIO
ITSELF.
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
1 Letter from the Chairman
2 Summary Information
Schedule of Investments:
4 Montag & Caldwell Growth Fund
5 Chicago Trust Growth & Income Fund
6 Chicago Trust Talon Fund
7 Chicago Trust Balanced Fund
11 Montag & Caldwell Balanced Fund
14 Chicago Trust Bond Fund
17 Chicago Trust Municipal Bond Fund
20 Chicago Trust Money Market Fund
22 Statement of Assets and Liabilities
24 Statement of Operations
26 Statement of Changes in Net Assets
30 Financial Highlights
39 Notes to Financial Statements
[LOGO] ALLEGHANY FUNDS
<PAGE>
GUIDE TO SHAREHOLDER BENEFITS
We're delighted to offer all Alleghany Funds shareowners a full assortment of
special features and convenient options. To receive more information about any
of these benefits, simply call an Investor Services Representative Monday -
Friday, 9 am - 7 pm E.S.T.
THE EASY WAY TO GROW YOUR ACCOUNT:
START AN AUTOMATIC INVESTMENT PLAN(1)
Systematic investing is an easy, effortless way to help reach any
investment goal. Simply choose a fixed amount, and we'll automatically deduct
it from your checking or savings account on a regular schedule - every month,
for example - and invest it in your Alleghany Funds account. The service is
free, and the minimum initial investment is $50.
COMPOUND YOUR EARNINGS WITH
AUTOMATIC DIVIDEND REINVESTMENT
By automatically reinvesting your dividends into your Alleghany Funds
account, your profits can mount. Monthly and quarterly dividends, and annual
capital gain distributions, are reinvested at no charge.
FREE, FLEXIBLE EXCHANGE PRIVILEGES
As your personal needs change, so can your Alleghany Funds investment.
Transfers between our funds are free of charge, and it only takes a telephone
call.
LOW MINIMUM INITIAL INVESTMENTS
The minimum initial investment for all Alleghany Funds is just $2,500 ($500
for IRAs). And subsequent investments can be as low as $50.
FREE CHECK WRITING SERVICES AVAILABLE
If you are an investor of the Chicago Trust Money Market Fund, you can take
advantage of free check writing privileges. The minimum amount for each check is
$500.
CONVENIENT INVESTOR WEBSITE:
www.alleghanyfunds.chicago-trust.com
Now you can access account balances, obtain fund information and make
transactions online - 24 hours a day, in complete security. And we're among the
just 10% of mutual fund companies who provide these capabilities.
FUND PERFORMANCE INFORMATION
IS AVAILABLE 24 HOURS A DAY
1-800-992-8151
(1) Periodic investment plans involve continuous investments in securities
regardless of price. You should consider your financial ability to continue to
purchase shares during periods of high and low prices.
<PAGE>
Dear Shareowner,
Our portfolio managers' perspectives on securities markets are not always
uniform. However, there is one constant -- they stick to their investment
disciplines. While it is difficult to sustain consistent long-term investment
performance, it may only occur if we continue to do those things that have
brought us success over the life of our funds.
We view these semi-annual reports as an opportunity to provide you with our
report card. I am therefore pleased to inform you that your funds are growing.
On May Day (May 1, 1998), one day after the end of our semi-annual reporting
period, our assets under management topped $2.5 billion! Not bad for a group
that had less than $700 million under management on December 31, 1995. We are
not foolish enough to ignore the fact that a lot of this growth has come from a
raging bull market in equities, but a significant amount has come from new
shareowners entrusting us with their assets. We welcome new shareowners to our
fund family, and we will do all that we can to help all of you reach your
financial goals.
Our investment performance continues to be strong, with most of our funds
showing very good results for the three years ended April 30, 1998. As managers,
we like to take stock of our record on a rolling three-year basis. We believe
that one year is too short a period to reach any valid conclusion about
investment capability, but after three years, some reasonable judgments can be
made.
<TABLE>
<CAPTION>
M&C CT GROWTH M&C CT MONEY
GROWTH & INCOME CT TALON BALANCED CT BOND MARKET
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Total Return For 3 Years
Ended 4/30/98* 151.76% 127.38% 98.03% 93.94% 28.18% 16.60%
Rank Among Similar 19 out of 536 33 out of 430 69 out of 160 6 out of 248 45 out of 159 45 out of 251
Funds (Lipper) For Growth Funds Growth & Mid Cap Balanced Interm. Inv. Money Market
3 Years Ended 4/30/98* Income Funds Funds Funds Grade Bond Funds
Funds
Total Return For 1 Year
Ended 4/30/98 43.88% 39.86% 25.89% 30.54% 10.35% 5.29%
Rank Among Similar 224 out of 860 164 out of 647 269 out of 275 47 out of 360 67 out of 210 55 out of 305
Funds (Lipper) For Growth Funds Growth & Mid Cap Balanced Interm. Inv. Money Market
1 Year Ended 4/30/98* Income Funds Funds Funds Grade Bond Funds
Funds
Average Annual Total
Return Since (Inception) 33.88% 23.90% 23.32% 23.65% 6.57% 4.96%
as of 4/30/98 (11/2/94) (12/13/93) (9/19/94) (11/2/94) (12/13/93) (12/14/93)
</TABLE>
We are proud of this record and hope you too are pleased with your investments.
Thank you for your confidence in the Alleghany Funds. Please visit our website
at www.alleghanyfunds.chicago-trust.com
Sincerely,
Stuart D. Bilton
Chairman and Chief Executive Officer
- --------------------------
The performance data quoted represents past performance and is no guarantee of
future performance.
* Lipper Analytical Services, Inc. (Lipper) is the source of the rankings, which
are based on total return fund performance for the one year ended April 30,
1998, and three years ended April 30, 1998, for funds of similar investment
objectives. The Lipper rankings listed include all classes of multiple-class
funds. Certain expenses for all of the ranked Alleghany Funds were subsidized
(by the Chicago Trust Company and Montag & Caldwell, Inc.) during the ranking
period for the one year ended April 30, 1998, and three years ended April 30,
1998.
The Alleghany Funds are no-load mutual funds distributed by First Data
Distributors, Inc., Westborough, MA 01581. This is not an offer to sell or a
solicitation of an offer to buy shares of any of the Funds described. Investment
return and principal value of an investment will fluctuate so that an Investor's
shares, when redeemed, may be worth more or less than their original cost. This
information must be accompanied or preceded by a prospectus.
1
<PAGE>
ALLEGHANY FUNDS -- SUMMARY INFORMATION
PERFORMANCE FOR THE SIX MONTHS ENDED APRIL 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONTAG & CALDWELL GROWTH FUND
CLASS N (RETAIL) CLASS I (INSTITUTIONAL) CHICAGO TRUST GROWTH & INCOME FUND
<S> <C> <C>
--------------------------------------------- --------------------------------------------
Total Returns:
6 Months 20.79% 20.99% 22.76%
1 Year 43.88% 44.36% 39.86%
Three Year
Average Annual N/A N/A 31.50%
Average Annual
Since Inception 33.88% 37.03% 23.90%
Value of $10,000 $27,690 $17,814 $25,536
from Inception
Date 11/2/94 6/28/96 12/13/93
--------------------------------------------- --------------------------------------------
TOP TEN HOLDINGS as of April 30, 1998
--------------------------------------------- --------------------------------------------
Company and Eli Lilly & Co. 4.70% Illinois Tool Works, Inc. 4.02%
% of Total Net Coca-Cola Co. 4.65% EMC Corp. 3.64%
Assets Gillette Co. 4.53% General Electric Co. 3.62%
Procter & Gamble Co. 4.52% Sysco Corp. 3.55%
Bristol-Myers Squibb Co. 4.51% Pfizer, Inc. 3.52%
Johnson & Johnson 4.45% Tellabs, Inc. 3.38%
Schlumberger, Ltd. 4.20% Health Management Associates, Inc. 3.28%
McDonald's Corp. 4.09% AlliedSignal, Inc. 3.26%
Walt Disney Co. 4.06% Paychex, Inc. 3.16%
Boston Scientific Corp. 3.72% American International Group, Inc. 3.12%
--------------------------------------------- --------------------------------------------
CHICAGO TRUST TALON FUND CHICAGO TRUST BALANCED FUND
--------------------------------------------- --------------------------------------------
Total Returns:
6 Months 3.58% 14.99%
1 Year 25.89% 28.63%
Three Year
Average Annual 25.58% N/A
Average Annual
Since Inception 23.32% 20.78%
Value of $10,000 $21,320 $16,362
from Inception
Date 9/19/94 9/21/95
--------------------------------------------- ---------------------------------------------
TOP TEN HOLDINGS as of April 30, 1998
--------------------------------------------- ---------------------------------------------
Company and Cerner Corp. 6.04% Paychex, Inc. 2.27%
% of Total Net Columbia HCA Healthcare Corp. 5.92% General Electric Co. 2.18%
Assets Mylan Laboratories, Inc. 5.31% American International Group, Inc. 2.14%
U.S. Treasury Bill, 4.680%, 05/14/98 4.89% Tellabs, Inc. 2.14%
Vitalink Pharmacy Services, Inc. 4.74% Illinois Tool Works, Inc. 2.13%
R.R. Donnelley & Sons Co. 4.60% Pfizer, Inc. 2.12%
Capital Trust, Class A 4.59% Microsoft Corp. 2.10%
Starbucks Corp. 4.40% Health Management Associates, Inc.,
Danielson Holdings Corp. 4.05% Class A 2.05%
St. Paul Bancorp, Inc. 3.93% Cisco Systems, Inc. 2.04%
Norwest Corp. 2.03%
--------------------------------------------- ---------------------------------------------
</TABLE>
2
<PAGE>
ALLEGHANY FUNDS -- SUMMARY INFORMATION
PERFORMANCE FOR THE SIX MONTHS ENDED APRIL 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONTAG & CALDWELL BALANCED FUND CHICAGO TRUST BOND FUND
------------------------------------------- ---------------------------------------------
<S> <C> <C>
Total Returns:
6 Months 13.34% 3.23%
1 Year 30.54% 10.35%
Three Year
Average Annual 24.71% 8.63%
Average Annual
Since Inception 23.65% 6.57%
Value of $10,000 $20,979 $13,211
from Inception
Date 11/2/94 12/13/93
--------------------------------------------- -----------------------------------------------
TOP TEN HOLDINGS as of April 30, 1998
--------------------------------------------- -----------------------------------------------
Company and Eli Lilly & Co. 2.99% U.S. Treasury Note, 6.370%, 08/15/02 3.26%
% of Total Net Gillette Co. 2.85% Merrill Lynch & Co., Inc., 7.000%,
Assets Coca-Cola Co. 2.82% 04/27/08 2.59%
Bristol-Myers Squibb Co. 2.77% U.S. Treasury Note, 7.250%, 05/15/04 2.28%
Walt Disney Co. 2.76% U.S. Treasury Note, 6.250%, 10/31/01 2.16%
Procter & Gamble Co. 2.74% Metropolitan Life
Johnson & Johnson 2.71% Insurance Co. 6.300%, 11/01/03 2.11%
McDonald's Corp. 2.66% Countrywide Home
U.S. Treasury Note, 6.500%, 10/15/06 2.63% Loans, CMO 6.750%, 04/25/28 2.06%
U.S. Treasury Note, 6.250%, 02/15/07 2.59% U.S. Treasury Bond, 7.125%, 02/15/23 2.01%
Chilgener S.A. Yankee
(Chile), 6.500%, 01/15/06 2.00%
U.S. Treasury Note, 7.875%, 08/15/01 1.88%
HSBC America Capital II, 8.380%,
05/15/27 1.85%
--------------------------------------------- ------------------------------------------------
CHICAGO TRUST MUNICIPAL BOND FUND
Total Returns:
---------------------------------------------------------------------------------------------------
6 Months 1.70%
1 Year 5.98%
Three Year
Average Annual 5.12%
Average Annual
Since Inception 4.00%
Value of $10,000 $11,871
from Inception
Date 12/13/93
---------------------------------------------------------------------------------------------------
TOP TEN HOLDINGS as of April 30, 1998
---------------------------------------------------------------------------------------------------
Company and King County, Washington, Series A, Arlington Independent School District,
% of Total Net G.O., 5.800%, 01/01/04 3.94% Texas, Refunding, G.O., 5.400%,02/15/99 2.95%
Assets Salt River Project Electric System Revenue, Mohave County, AZ, IDA, 6.000%, 07/01/00 2.83%
AZ, Refunding, Series A, 5.500%, 01/01/05 3.69% State of New Jersey Transportation Trust
Texas State Water Development Board, G.O. Fund Revenue, 5.200%, 12/15/00 2.80%
Escrowed to Maturity, 5.000%, 08/01/99 3.55% Tulsa, Oklahoma Metropolitan Utility
Commonwealth of Puerto Rico, Series A, G.O. Authority Revenue, 5.500%, 07/01/00 2.80%
6.500%, 07/01/03 3.42% Tooele County, Utah, Hazardous Waste
Clark County, Nevada School District, G.O. Treatment Revenue, 5.700%, 11/01/26 2.71%
6.400%, 06/15/06 3.00%
---------------------------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
ALLEGHANY FUNDS
MONTAG & CALDWELL GROWTH FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value
- ------ -----
<C> <S> <C>
COMMON STOCKS - 96.96%
BUSINESS SERVICES - 1.78%
550,000 Manpower, Inc. . . . . . . . . . . . . . . . . . $ 24,234,375
----------------
CONSUMER NON-DURABLES - 14.85%
535,000 Gillette Co. . . . . . . . . . . . . . . . . . . 61,759,062
530,000 Interpublic Group Of Companies, Inc. . . . . . . 33,853,750
1,175,000 Mattel, Inc. . . . . . . . . . . . . . . . . . . 45,017,187
750,000 Procter & Gamble Co. . . . . . . . . . . . . . . 61,640,625
----------------
202,270,624
----------------
ELECTRICAL - 2.97%
475,000 General Electric Co. . . . . . . . . . . . . . . 40,434,375
----------------
ENERGY - 6.13%
650,000 Baker Hughes, Inc. . . . . . . . . . . . . . . . 26,325,000
690,000 Schlumberger, Ltd. . . . . . . . . . . . . . . . 57,183,750
----------------
83,508,750
----------------
ENTERTAINMENT AND LEISURE - 4.06%
445,000 Walt Disney Co. . . . . . . . . . . . . . . . . 55,319,063
----------------
FINANCE - 6.41%
430,000 American Express Co. . . . . . . . . . . . . . . 43,860,000
330,000 American International Group, Inc. . . . . . . . 43,415,625
----------------
87,275,625
----------------
FOOD AND BEVERAGE - 4.77%
835,000 Coca-Cola Co.. . . . . . . . . . . . . . . . . . 63,355,625
43,000 Pioneer Hi-Bred International, Inc. . . . . . . 1,623,250
----------------
64,978,875
----------------
HEALTH CARE SERVICES - 7.80%
850,000 Johnson & Johnson. . . . . . . . . . . . . . . . 60,668,750
401,000 Pfizer, Inc. . . . . . . . . . . . . . . . . . . 45,638,813
----------------
106,307,563
----------------
LODGING - 2.32%
540,000 Marriott International, Inc. . . . . . . . . . . 17,820,000
432,400 Marriott International, Inc., Class A. . . . . . 13,836,800
----------------
31,656,800
----------------
MEDICAL SUPPLIES - 3.38%
875,000 Medtronic, Inc. . . . . . . . . . . . . . . . . 46,046,875
----------------
PHARMACEUTICALS - 12.21%
580,000 Bristol-Myers Squibb Co. . . . . . . . . . . . . 61,407,500
920,000 Eli Lilly & Co. . . . . . . . . . . . . . . . . 63,997,500
340,000 Merck & Co., Inc. . . . . . . . . . . . . . . . 40,970,000
----------------
166,375,000
----------------
<CAPTION>
Market
Shares Value
- ------ -----
<C> <S> <C>
RESTAURANTS - 5.62%
400,000 Cracker Barrell Old Country Store, Inc. . . . . $ 14,700,000
1,000,000 McDonald's Corp. . . . . . . . . . . . . . . . . 61,875,000
----------------
76,575,000
----------------
RETAIL - 6.44%
825,000 Gap, Inc. . . . . . . . . . . . . . . . . . . . 42,435,938
650,000 Home Depot, Inc. . . . . . . . . . . . . . . . . 45,256,250
----------------
87,692,188
----------------
TECHNOLOGY - 15.29%
700,000 Boston Scientific Corp.* . . . . . . . . . . . . 50,618,750
590,000 Cisco Systems, Inc.* . . . . . . . . . . . . . . 43,217,500
550,000 Electronic Arts, Inc.* . . . . . . . . . . . . . 25,437,500
70,000 Hewlett-Packard Co. . . . . . . . . . . . . . . 5,271,875
159,100 Intel Corp.. . . . . . . . . . . . . . . . . . . 12,857,269
442,600 Microsoft Corp.* . . . . . . . . . . . . . . . . 39,889,325
700,000 Solectron Corp.* . . . . . . . . . . . . . . . . 31,018,750
----------------
208,310,969
----------------
TELECOMMUNICATIONS - 2.93%
775,500 Ericsson (LM) Telefonaktiebolaget, ADR
Class B, Series 10 . . . . . . . . . . . . . . . 39,889,781
----------------
TOTAL COMMON STOCKS. . . . . . . . . . . . . . . 1,320,875,863
(Cost $996,809,509) ----------------
INVESTMENT COMPANIES - 4.24%
49,121,510 Bankers Trust Institutional
Cash Management Fund . . . . . . . . . . . . . . 49,121,510
8,603,387 Bankers Trust Institutional
Treasury Money Fund. . . . . . . . . . . . . . . 8,603,387
----------------
TOTAL INVESTMENT COMPANIES . . . . . . . . . . . 57,724,897
(Cost $57,724,897) ----------------
TOTAL INVESTMENTS - 101.20%. . . . . . . . . . . . . . . . . . 1,378,600,760
(Cost $1,054,534,406)** ----------------
LIABILITIES NET OF CASH AND OTHER ASSETS - (1.20%) . . . . . . (16,332,286)
----------------
NET ASSETS - 100.00% . . . . . . . . . . . . . . . . . . . . . $ 1,362,268,474
----------------
----------------
</TABLE>
- --------------------
<TABLE>
<CAPTION>
<S><C>
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is $1,054,534,406.
Gross unrealized appreciation $ 327,662,730
Gross unrealized (depreciation) (3,596,376)
--------------
Net unrealized appreciation $ 324,066,354
--------------
--------------
ADR American Depositary Receipt
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
4
<PAGE>
ALLEGHANY FUNDS
CHICAGO TRUST GROWTH & INCOME FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value
- ------ -----
<C> <S> <C>
COMMON STOCKS - 97.58%
BUSINESS SERVICES - 3.16%
206,000 Paychex, Inc. . . . . . . . . . . . . . . . . . $ 11,188,375
----------------
CAPITAL GOODS - 6.16%
264,000 AlliedSignal, Inc. . . . . . . . . . . . . . . . 11,566,500
214,000 Pitney Bowes, Inc. . . . . . . . . . . . . . . . 10,272,000
----------------
21,838,500
----------------
CHEMICALS - 2.39%
168,000 Praxair, Inc. . . . . . . . . . . . . . . . . . 8,452,500
----------------
CONSUMER DURABLES - 6.82%
202,000 Illinois Tool Works, Inc. . . . . . . . . . . . 14,241,000
167,000 Johnson Controls, Inc. . . . . . . . . . . . . . 9,915,625
----------------
24,156,625
----------------
CONSUMER NON-DURABLES - 11.67%
200,200 Cintas Corp. . . . . . . . . . . . . . . . . . . 9,534,525
124,250 Lancaster Colony Corp. . . . . . . . . . . . . . 4,799,156
265,000 Mattel, Inc. . . . . . . . . . . . . . . . . . . 10,152,813
170,100 Newell Co. . . . . . . . . . . . . . . . . . . . 8,217,956
105,000 Procter & Gamble Co. . . . . . . . . . . . . . . 8,629,687
----------------
41,334,137
----------------
ELECTRICAL - 3.62%
150,800 General Electric Co. . . . . . . . . . . . . . . 12,836,850
----------------
ENERGY - 1.59%
96,000 Smith International, Inc.* . . . . . . . . . . . 5,640,000
----------------
FINANCE - 18.30%
100,000 AFLAC, Inc. . . . . . . . . . . . . . . . . . . 6,500,000
83,975 American International Group, Inc. . . . . . . . 11,047,961
133,000 Associates First Capital Corp., Class A . . . . 9,941,750
216,600 Federal Home Loan Mortgage Corp. . . . . . . . . 10,031,287
108,000 First Data Corp. . . . . . . . . . . . . . . . . 3,658,500
205,287 MBNA Corp. . . . . . . . . . . . . . . . . . . . 6,954,097
221,200 Norwest Corp. . . . . . . . . . . . . . . . . . 8,778,875
226,000 Schwab (Charles) Corp. . . . . . . . . . . . . . 7,910,000
----------------
64,822,470
----------------
FOOD AND BEVERAGE - 4.81%
163,500 Richfood Holdings, Inc., Class A . . . . . . . . 4,486,031
528,000 Sysco Corp. . . . . . . . . . . . . . . . . . . 12,573,000
----------------
17,059,031
----------------
HEALTH CARE SERVICES - 12.45%
114,000 Cardinal Health, Inc. . . . . . . . . . . . . . 10,972,500
369,375 Health Management
Associates, Inc., Class A* . . . . . . . . . . . 11,635,313
<CAPTION>
Market
Shares Value
- ------ -----
<C> <S> <C>
HEALTH CARE SERVICES (CONTINUED)
264,000 Omnicare, Inc. . . . . . . . . . . . . . . . . . $ 9,042,000
109,600 Pfizer, Inc. . . . . . . . . . . . . . . . . . . 12,473,850
----------------
44,123,663
----------------
PHARMACEUTICALS - 2.74%
80,700 Merck & Co., Inc. . . . . . . . . . . . . . . . 9,724,350
----------------
RETAIL - 3.77%
102,000 Kohl's Corp.* . . . . . . . . . . . . . . . . . 4,213,875
265,000 Walgreen Co. . . . . . . . . . . . . . . . . . . 9,142,500
----------------
13,356,375
----------------
TECHNOLOGY - 16.72%
139,600 Cisco Systems, Inc.* . . . . . . . . . . . . . . 10,225,700
135,000 Computer Associates International, Inc. . . . . 7,905,938
127,200 Computer Sciences Corp.* . . . . . . . . . . . . 6,709,800
279,300 EMC Corp.* . . . . . . . . . . . . . . . . . . . 12,882,713
177,000 HBO & Co.. . . . . . . . . . . . . . . . . . . . 10,586,812
64,800 Microsoft Corp.* . . . . . . . . . . . . . . . . 5,840,100
124,000 Sun Microsystems, Inc.* . . . . . . . . . . . . 5,107,250
----------------
59,258,313
----------------
TELECOMMUNICATIONS - 3.38%
169,000 Tellabs, Inc.* . . . . . . . . . . . . . . . . . 11,977,875
----------------
TOTAL COMMON STOCKS. . . . . . . . . . . . . . . 345,769,064
(Cost $229,357,104) ----------------
Par Value
- ---------
REPURCHASE AGREEMENT - 2.49%
$ 8,823,000 First Chicago,
5.400%, dated 04/30/98 to be repurchased
on 05/01/98 at $8,824,323
(Collateralized by U.S. Treasury Note
6.250%, due 05/31/00;
Total Par $8,675,000). . . . . . . . . . . . . . 8,823,000
----------------
TOTAL REPURCHASE AGREEMENT . . . . . . . . . . . 8,823,000
(Cost $8,823,000) ----------------
TOTAL INVESTMENTS - 100.07%. . . . . . . . . . . . . . . . . . 354,592,064
----------------
(Cost $238,180,104)**
LIABILITIES NET OF CASH AND OTHER ASSETS - (0.07%) . . . . . . (259,419)
----------------
NET ASSETS - 100.00% . . . . . . . . . . . . . . . . . . . . . $ 354,332,645
----------------
----------------
</TABLE>
- --------------------
<TABLE>
<CAPTION>
<S><C>
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is $238,180,104.
Gross unrealized appreciation $ 119,070,438
Gross unrealized (depreciation) (2,658,478)
--------------
Net unrealized appreciation $ 116,411,960
--------------
--------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
ALLEGHANY FUNDS
CHICAGO TRUST TALON FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value
- ------ -----
<C> <S> <C>
COMMON STOCKS - 78.77%
CONSUMER CYCLICAL - 3.54%
60,000 Circus Circus Enterprises, Inc.* . . . . . . . . $ 1,083,750
----------------
CONSUMER STAPLE - 2.44%
20,000 Philip Morris Cos., Inc. . . . . . . . . . . . . 746,250
----------------
ELECTRICAL - 2.33%
30,000 Berg Electronics Corp.*. . . . . . . . . . . . . 714,375
----------------
FINANCE - 18.36%
125,000 Capital Trust, Class A*. . . . . . . . . . . . . 1,406,250
160,000 Danielson Holdings Corp.*. . . . . . . . . . . . 1,240,000
48,125 St. Paul Bancorp, Inc. . . . . . . . . . . . . . 1,203,125
30,000 TIG Holdings, Inc. . . . . . . . . . . . . . . . 721,875
25,000 Travelers Property Casualty, Class A . . . . . . 1,050,000
----------------
5,621,250
----------------
HEALTHCARE SERVICES - 5.91%
55,000 Columbia HCA Healthcare Corp.. . . . . . . . . . 1,811,563
----------------
LODGING - 3.13%
30,000 Hilton Hotels Corp. . . . . . . . . . . . . . . 958,125
----------------
PHARMACEUTICALS - 13.51%
60,000 Mylan Laboratories, Inc. . . . . . . . . . . . . 1,627,500
65,000 North American Vaccine, Inc.* . . . . . . . . . 1,056,250
67,544 Vitalink Pharmacy Services, Inc.*. . . . . . . . 1,452,196
----------------
4,135,946
----------------
PRINTING AND PUBLISHING - 4.60%
32,000 R.R. Donnelley & Sons Co. . . . . . . . . . . . 1,410,000
----------------
REAL ESTATE - 2.88%
31,000 Equity Office Properties Trust, REIT . . . . . . 881,562
----------------
RESTAURANTS - 6.70%
28,000 Starbucks Corp.* . . . . . . . . . . . . . . . . 1,347,500
122,500 Unique Casual Restaurants* . . . . . . . . . . . 704,375
----------------
2,051,875
----------------
TECHNOLOGY - 12.54%
62,000 Cerner Corp.* . . . . . . . . . . . . . . . . . 1,848,375
40,000 Compaq Computer Corp.. . . . . . . . . . . . . . 1,122,500
115,000 Robotic Vision Systems, Inc.*. . . . . . . . . . 869,687
----------------
3,840,562
----------------
<CAPTION>
Market
Shares Value
- ------ -----
<C> <S> <C>
TELECOMMUNICATIONS - 2.83%
125,000 Data Broadcasting Corp.* . . . . . . . . . . . . $ 867,188
----------------
TOTAL COMMON STOCKS. . . . . . . . . . . . . . . 24,122,446
(Cost $19,840,801) ----------------
Par Value
- ---------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 22.70%
FEDERAL HOME LOAN BANK - 3.22%
$ 1,000,000 5.317%, 08/03/98 . . . . . . . . . . . . . . . . 985,970
----------------
FEDERAL NATIONAL
MORTGAGE ASSOCIATION - 3.24%
1,000,000 5.217%, 06/11/98 . . . . . . . . . . . . . . . . 993,850
----------------
U.S. TREASURY BILLS (A) - 12.97%
1,500,000 4.680%, 05/14/98 . . . . . . . . . . . . . . . . 1,497,270
1,000,000 4.827%, 05/28/98 . . . . . . . . . . . . . . . . 996,246
1,000,000 4.783%, 07/23/98 . . . . . . . . . . . . . . . . 988,840
500,000 5.012%, 10/15/98 . . . . . . . . . . . . . . . . 488,305
----------------
3,970,661
----------------
U.S. TREASURY NOTE - 3.27%
1,000,000 5.250%, 07/31/98 . . . . . . . . . . . . . . . . 1,000,450
----------------
TOTAL U.S. GOVERNMENT
AND AGENCY OBLIGATIONS . . . . . . . . . . . . . 6,950,931
(Cost $6,949,249) ----------------
Shares
- ------
INVESTMENT COMPANY - 3.17%
970,973 Bankers Trust Institutional
Cash Management Fund . . . . . . . . . . . . . . 970,973
----------------
TOTAL INVESTMENT COMPANY . . . . . . . . . . . . 970,973
(Cost $970,973) ----------------
TOTAL INVESTMENTS - 104.64%. . . . . . . . . . . . . . . . . . 32,044,350
(Cost $27,761,023)** ----------------
LIABILITIES NET OF CASH AND OTHER ASSETS - (4.64%) . . . . . . (1,421,301)
----------------
NET ASSETS - 100.00% . . . . . . . . . . . . . . . . . . . . . $ 30,623,049
----------------
----------------
</TABLE>
- --------------------
<TABLE>
<CAPTION>
<S><C>
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is $27,761,025.
Gross unrealized appreciation $ 5,319,977
Gross unrealized (depreciation) (1,036,650)
------------
Net unrealized appreciation $ 4,283,327
------------
------------
(A) Annualized yield at time of purchase
REIT Real Estate Investment Trust
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
ALLEGHANY FUNDS
CHICAGO TRUST BALANCED FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value
- ------ -----
<C> <S> <C>
COMMON STOCKS - 59.56%
BUSINESS SERVICES - 2.27%
90,000 Paychex, Inc. . . . . . . . . . . . . . . . . . $ 4,888,125
----------------
CAPITAL GOODS - 3.51%
90,000 AlliedSignal Corp. . . . . . . . . . . . . . . . 3,943,125
75,000 Pitney Bowes, Inc. . . . . . . . . . . . . . . . 3,600,000
----------------
7,543,125
----------------
CHEMICALS - 1.05%
45,000 Praxair, Inc. . . . . . . . . . . . . . . . . . 2,264,062
----------------
CONSUMER DURABLES - 3.51%
65,000 Illinois Tool Works, Inc. . . . . . . . . . . . 4,582,500
50,000 Johnson Controls, Inc. . . . . . . . . . . . . . 2,968,750
----------------
7,551,250
----------------
CONSUMER NON-DURABLES - 7.36%
85,000 Cintas Corp. . . . . . . . . . . . . . . . . . . 4,048,125
75,000 Lancaster Colony Corp. . . . . . . . . . . . . . 2,896,875
60,000 Mattel, Inc. . . . . . . . . . . . . . . . . . . 2,298,750
75,000 Newell Co. . . . . . . . . . . . . . . . . . . . 3,623,437
36,000 Procter & Gamble Co. . . . . . . . . . . . . . . 2,958,750
----------------
15,825,937
----------------
ELECTRICAL - 2.18%
55,000 General Electric Co. . . . . . . . . . . . . . . 4,681,875
----------------
ENERGY - 1.09%
40,000 Smith International, Inc.* . . . . . . . . . . . 2,350,000
----------------
FINANCE - 12.18%
40,000 AFLAC, Inc. . . . . . . . . . . . . . . . . . . 2,600,000
35,000 American International Group, Inc. . . . . . . . 4,604,687
30,000 Associates First Capital Corp., Class A . . . . 2,242,500
90,000 Federal Home Loan Mortgage Corp. . . . . . . . . 4,168,125
50,000 First Data Corp. . . . . . . . . . . . . . . . . 1,693,750
110,000 MBNA Corp. . . . . . . . . . . . . . . . . . . . 3,726,250
110,000 Norwest Corp. . . . . . . . . . . . . . . . . . 4,365,625
80,000 Schwab (Charles) Corp. . . . . . . . . . . . . . 2,800,000
----------------
26,200,937
----------------
FOOD AND BEVERAGE - 2.35%
45,000 Richfood Holdings, Inc., Class A . . . . . . . . 1,234,687
160,000 Sysco Corp. . . . . . . . . . . . . . . . . . . 3,810,000
----------------
5,044,687
----------------
HEALTH CARE SERVICES - 7.33%
35,000 Cardinal Health, Inc. . . . . . . . . . . . . . 3,368,750
140,000 Health Management
Associates, Inc., Class A* . . . . . . . . . . . 4,410,000
Market
Shares Value
- ------ -----
<C> <S> <C>
HEALTH CARE SERVICES (CONTINUED)
100,000 Omnicare, Inc. . . . . . . . . . . . . . . . . . $ 3,425,000
40,000 Pfizer, Inc. . . . . . . . . . . . . . . . . . . 4,552,500
----------------
15,756,250
----------------
PHARMACEUTICALS - 1.68%
30,000 Merck & Co., Inc. . . . . . . . . . . . . . . . 3,615,000
----------------
RETAIL - 2.57%
50,000 Kohl's Corp.* . . . . . . . . . . . . . . . . . 2,065,625
100,000 Walgreen Co. . . . . . . . . . . . . . . . . . . 3,450,000
----------------
5,515,625
----------------
TECHNOLOGY - 10.34%
60,000 Cisco Systems, Inc.* . . . . . . . . . . . . . . 4,395,000
35,000 Computer Associates International, Inc. . . . . 2,049,687
50,000 Computer Sciences Corp.* . . . . . . . . . . . . 2,637,500
85,000 EMC Corp.* . . . . . . . . . . . . . . . . . . . 3,920,625
55,000 HBO & Co.. . . . . . . . . . . . . . . . . . . . 3,289,687
50,000 Microsoft Corp.* . . . . . . . . . . . . . . . . 4,506,250
35,000 Sun Microsystems, Inc.* . . . . . . . . . . . . 1,441,562
----------------
22,240,311
----------------
TELECOMMUNICATIONS - 2.14%
65,000 Tellabs, Inc.* . . . . . . . . . . . . . . . . . 4,606,875
----------------
TOTAL COMMON STOCKS. . . . . . . . . . . . . . . 128,084,059
(Cost $80,206,668) ----------------
Par Value
- ---------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 18.10%
U.S. TREASURY NOTES - 7.37%
$ 1,500,000 9.000%, 05/15/98 . . . . . . . . . . . . . . . . 1,502,580
2,000,000 5.500%, 02/28/99 . . . . . . . . . . . . . . . . 2,000,300
2,000,000 7.125%, 02/29/00 . . . . . . . . . . . . . . . . 2,053,100
2,000,000 7.875%, 08/15/01 . . . . . . . . . . . . . . . . 2,132,200
2,000,000 6.375%, 08/15/02 . . . . . . . . . . . . . . . . 2,052,800
2,000,000 5.750%, 08/15/03 . . . . . . . . . . . . . . . . 2,007,920
2,000,000 5.875%, 02/15/04 . . . . . . . . . . . . . . . . 2,018,780
2,000,000 6.500%, 08/15/05 . . . . . . . . . . . . . . . . 2,088,060
----------------
15,855,740
----------------
U.S. TREASURY BONDS - 1.51%
1,500,000 7.125%, 02/15/23 . . . . . . . . . . . . . . . . 1,707,600
1,500,000 6.250%, 08/15/23 . . . . . . . . . . . . . . . . 1,542,345
----------------
3,249,945
----------------
FEDERAL HOME LOAN
MORTGAGE CORPORATION - 2.49%
350,717 5.500%, 08/15/04 . . . . . . . . . . . . . . . . 350,082
1,000,000 5.850%, 02/21/06 . . . . . . . . . . . . . . . . 988,810
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
ALLEGHANY FUNDS
CHICAGO TRUST BALANCED FUND
SCHEDULE OF INVESTMENTS - CONTINUED (UNAUDITED) APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- -----
<C> <S> <C>
FEDERAL HOME LOAN
MORTGAGE CORPORATION (CONTINUED)
$ 1,000,000 6.500%, 09/15/07 . . . . . . . . . . . . . . . . $ 1,016,750
495,164 7.500%, 04/01/08 . . . . . . . . . . . . . . . . 510,019
954,908 6.500%, 06/01/09 . . . . . . . . . . . . . . . . 960,275
544,580 7.000%, 07/01/13 . . . . . . . . . . . . . . . . 551,556
198,726 7.000%, 11/15/13, IO . . . . . . . . . . . . . . 976
1,000,000 6.000%, 12/15/23 . . . . . . . . . . . . . . . . 970,490
----------------
5,348,958
----------------
FEDERAL NATIONAL
MORTGAGE ASSOCIATION - 2.99%
2,000,000 5.625%, 03/15/01 . . . . . . . . . . . . . . . . 1,992,760
746,989 6.900%, 12/25/03, CMO. . . . . . . . . . . . . . 756,379
1,403,207 7.000%, 01/01/13 . . . . . . . . . . . . . . . . 1,429,518
990,089 7.000%, 03/01/13 . . . . . . . . . . . . . . . . 1,008,653
773,371 7.000%, 07/25/17, CMO, IO. . . . . . . . . . . . 56,181
443,830 9.000%, 05/01/25 . . . . . . . . . . . . . . . . 469,625
718,184 6.500%, 02/01/28 . . . . . . . . . . . . . . . . 711,226
----------------
6,424,342
----------------
GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION - 3.74%
429,655 7.000%, 06/15/08 . . . . . . . . . . . . . . . . 439,859
573,582 8.000%, 03/15/17 . . . . . . . . . . . . . . . . 595,625
806,042 8.000%, 06/15/17 . . . . . . . . . . . . . . . . 837,018
1,568,161 7.000%, 09/15/23 . . . . . . . . . . . . . . . . 1,587,763
734,497 7.000%, 10/15/23 . . . . . . . . . . . . . . . . 743,679
1,004,766 7.000%, 10/15/23 . . . . . . . . . . . . . . . . 1,017,325
1,387,579 6.500%, 03/15/26 . . . . . . . . . . . . . . . . 1,375,868
474,370 7.500%, 06/15/27 . . . . . . . . . . . . . . . . 487,709
961,802 6.500%, 08/15/27 . . . . . . . . . . . . . . . . 954,887
----------------
8,039,733
----------------
TOTAL U.S. GOVERNMENT
AND AGENCY OBLIGATIONS . . . . . . . . . . . . . 38,918,718
(Cost $38,280,783) ----------------
CORPORATE NOTES AND BONDS - 15.87%
CABLE TELEVISION - 0.38%
700,000 Continental Cablevision, Debenture
9.500%, 08/01/13 . . . . . . . . . . . . . . . . 815,500
----------------
ENERGY - 1.30%
1,700,000 Ashland, Inc.
6.625%, 02/15/08 (A) . . . . . . . . . . . . . . 1,696,000
375,000 Petroliam Nasional Berhad
7.125%, 10/18/06 (A) . . . . . . . . . . . . . . 351,094
750,000 Williams Co., Inc.
5.950%, 02/15/00 (A) . . . . . . . . . . . . . . 739,688
----------------
2,786,782
----------------
<CAPTION>
Market
Par Value Value
- --------- -----
<C> <S> <C>
FINANCE - 8.79%
$ 1,000,000 Advanta Corp., MTN
7.000%, 05/01/01 . . . . . . . . . . . . . . . . $ 923,750
650,000 Associates Corp. NA
6.375%, 08/15/98 . . . . . . . . . . . . . . . . 650,767
750,000 Chelsea GCA Realty Partnership, REIT
7.250%, 10/21/07 . . . . . . . . . . . . . . . . 765,000
1,000,000 Continental Corp. Notes
7.250%, 03/01/03 . . . . . . . . . . . . . . . . 1,027,500
750,000 DR Investment Corp.
7.450%, 05/15/07 (A) . . . . . . . . . . . . . . 796,875
1,250,000 Goldman Sachs Group LP
6.250%, 02/01/03 (A) . . . . . . . . . . . . . . 1,246,875
1,000,000 HSBC America Capital II
8.380%, 05/15/27 (A) . . . . . . . . . . . . . . 1,048,750
1,500,000 Heller Financial, Inc.
5.625%, 03/15/00 . . . . . . . . . . . . . . . . 1,486,875
1,000,000 International Bank for Reconstruction &
Development Notes
9.770%, 05/27/98 . . . . . . . . . . . . . . . . 1,002,500
1,000,000 John Deere Capital Corp., Debenture
8.625%, 08/01/19 . . . . . . . . . . . . . . . . 1,092,500
1,000,000 Leucadia National Corp.
Senior Subordinated Notes
8.250%, 06/15/05 . . . . . . . . . . . . . . . . 1,063,750
500,000 Leucadia National Corp.
Senior Subordinated Notes
7.875%, 10/15/06 . . . . . . . . . . . . . . . . 521,875
1,500,000 Merrill Lynch & Co., Inc.
7.000%, 04/27/08 . . . . . . . . . . . . . . . . 1,571,250
1,500,000 Metropolitan Life Insurance Co.
6.300%, 11/01/03 (A) . . . . . . . . . . . . . . 1,494,375
600,000 Olympic Financial Ltd.
11.500%, 03/15/07. . . . . . . . . . . . . . . . 597,000
1,000,000 Pacific Mutual Life Insurance Co.
7.900%, 12/30/23 (A) . . . . . . . . . . . . . . 1,090,000
1,000,000 Prudential Insurance Co. of America
8.300%, 07/01/25 (A) . . . . . . . . . . . . . . 1,117,500
375,000 SB Treasury Co., LLC
9.400%, 12/29/49 (A) . . . . . . . . . . . . . . 386,719
1,000,000 Wells Fargo Capital
7.730%, 12/01/26 (A) . . . . . . . . . . . . . . 1,026,250
----------------
18,910,111
----------------
FOOD AND BEVERAGE - 0.47%
1,000,000 Nabisco, Inc.
6.700%, 06/15/02 . . . . . . . . . . . . . . . . 1,013,750
----------------
HEALTHCARE SERVICES - 0.42%
1,100,000 Hospital Corp. of America
Debenture
8.123%, 06/01/00 (B) . . . . . . . . . . . . . . 911,625
----------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
ALLEGHANY FUNDS
CHICAGO TRUST BALANCED FUND
SCHEDULE OF INVESTMENTS - CONTINUED (UNAUDITED) APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- -----
<C> <S> <C>
PRINTING AND PUBLISHING - 0.90%
$ 1,000,000 News America Holdings
7.750%, 02/01/24 . . . . . . . . . . . . . . . . $ 1,055,000
782,000 Time Warner, Inc., Series M
10.250%, 07/01/16. . . . . . . . . . . . . . . . 876,818
----------------
1,931,818
----------------
RETAIL - 0.47%
1,000,000 K-mart Corp., Debenture
7.950%, 02/01/23 . . . . . . . . . . . . . . . . 1,005,000
----------------
TRANSPORTATION - 0.21%
413,123 Delta Air Lines, Inc.
Equipment Trust, Series 1992A
8.540%, 01/02/07 . . . . . . . . . . . . . . . . 445,380
----------------
UTILITIES - 2.93%
1,000,000 CalEnergy Co., Inc.
7.630%, 10/15/07 . . . . . . . . . . . . . . . . 1,002,500
1,000,000 Commonwealth Edison Co., First Mortgage
7.750%, 07/15/23 . . . . . . . . . . . . . . . . 1,027,500
1,000,000 Gulf States Utilities, First Mortgage, Series A
8.250%, 04/01/04 . . . . . . . . . . . . . . . . 1,077,500
1,000,000 Long Island Lighting Co., Debenture
9.000%, 11/01/22 . . . . . . . . . . . . . . . . 1,137,500
1,000,000 Niagra Mohawk Power, First Mortgage
8.000%, 06/01/04 . . . . . . . . . . . . . . . . 1,067,500
1,000,000 Philadelphia Electric Co., First Mortgage
5.625%, 11/01/01 . . . . . . . . . . . . . . . . 986,250
----------------
6,298,750
----------------
TOTAL CORPORATE NOTES AND BONDS. . . . . . . . . 34,118,716
(Cost $33,224,995) ----------------
<CAPTION>
Market
Par Value Value
- --------- -----
<C> <S> <C>
YANKEE BONDS - 1.80%
$ 1,750,000 Chilgener S.A. Yankee (Chile)
6.500%, 01/15/06 . . . . . . . . . . . . . . . . $ 1,655,938
943,503 Province of Mendoza
Collateral Oil Royalty Note
10.000%, 07/25/02 (A). . . . . . . . . . . . . . 974,534
1,250,000 Skandinaviska Enskilda, Subordinated Notes
6.625%, 03/29/49 (A) . . . . . . . . . . . . . . 1,250,000
----------------
TOTAL YANKEE BONDS . . . . . . . . . . . . . . . 3,880,472
(Cost $3,918,272) ----------------
GOVERNMENT TRUST CERTIFICATES - 0.38%
51,490 Greece Trust, Class G-2
8.000%, 05/15/98 . . . . . . . . . . . . . . . . 51,490
745,803 Israel Collateral Trust, Class 1-C
9.250%, 11/15/01 . . . . . . . . . . . . . . . . 770,042
----------------
TOTAL GOVERNMENT TRUST CERTIFICATES. . . . . . . 821,532
(Cost $867,920) ----------------
ASSET-BACKED SECURITIES - 2.56%
1,000,000 BA Mortgage Securities, CMO
7.350%, 07/25/26 . . . . . . . . . . . . . . . . 1,004,688
1,400,000 Chemical Master Credit Card Trust I, Class A
5.550%, 09/15/03 . . . . . . . . . . . . . . . . 1,388,002
1,000,000 Citibank Credit Card Master Trust I, Class A
6.839%, 02/10/04 . . . . . . . . . . . . . . . . 1,017,840
1,500,000 Countrywide Home Loans, CMO
6.750%, 04/25/28 . . . . . . . . . . . . . . . . 1,458,750
600,000 Midland Realty Acceptance Corp., CMO
7.475%, 08/25/28 . . . . . . . . . . . . . . . . 630,188
----------------
TOTAL ASSET-BACKED SECURITIES. . . . . . . . . . 5,499,468
(Cost $5,459,599) ----------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
ALLEGHANY FUNDS
CHICAGO TRUST BALANCED FUND
SCHEDULE OF INVESTMENTS - CONTINUED (UNAUDITED) APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- -----
<C> <S> <C>
REPURCHASE AGREEMENTS - 1.26%
$ 2,446,000 First Chicago,
5.400%, dated 04/30/98 to be repurchased
on 05/01/98 at $2,446,367
(Collateralized by U.S. Treasury Note
6.250%, due 05/31/00;
Total Par $2,405,000). . . . . . . . . . . . . . $ 2,446,000
257,000 First Chicago,
5.400%, dated 04/30/98 to be repurchased
on 05/01/98 at $257,039
(Collateralized by U.S. Treasury Note
6.875%, due 08/31/99;
Total Par $260,000). . . . . . . . . . . . . . . 257,000
----------------
TOTAL REPURCHASE AGREEMENTS. . . . . . . . . . . 2,703,000
(Cost $2,703,000) ----------------
TOTAL INVESTMENTS - 99.53% . . . . . . . . . . . . . . . . . . 214,025,965
(Cost $164,661,237)** ----------------
NET OTHER ASSETS AND LIABILITIES - 0.47% . . . . . . . . . . . 1,006,936
----------------
NET ASSETS - 100.00% . . . . . . . . . . . . . . . . . . . . . $ 215,032,901
----------------
----------------
</TABLE>
- --------------------
<TABLE>
<CAPTION>
<S><C>
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is $164,661,237.
Gross unrealized appreciation $ 50,441,633
Gross unrealized (depreciation) (1,076,905)
--------------
Net unrealized appreciation $ 49,364,728
--------------
--------------
</TABLE>
(A) Securities exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold, in transactions exempt
from registration, to qualified institutional buyers. At April 30,
1998, these securities amounted to $13,218,660 or 6.15% of net assets.
(B) Annualized yield at time of purchase
CMO Collateralized Mortgage Obligation
IO Interest Only
MTN Medium Term Note
REIT Real Estate Investment Trust
PORTFOLIO COMPOSITION (Moody's Ratings)
Common Stock 60%
Repurchase Agreement 1%
U.S. Government Obligations 10%
U.S. Government Agency Obligations 9%
Rated Corporate Notes and Bonds:
Aaa 3%
AA 1%
A 5%
Baa 6%
Ba 4%
B 1%
-----
100%
-----
-----
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
ALLEGHANY FUNDS
MONTAG & CALDWELL BALANCED FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value
- ------ -----
<C> <S> <C>
COMMON STOCKS - 61.18%
BUSINESS SERVICES - 1.41%
44,800 Manpower, Inc. . . . . . . . . . . . . . . . . . $ 1,974,000
----------------
CONSUMER NON-DURABLES - 9.13%
34,500 Gillette Co. . . . . . . . . . . . . . . . . . . 3,982,594
29,400 Interpublic Group Of Companies, Inc. . . . . . . 1,877,925
80,000 Mattel, Inc. . . . . . . . . . . . . . . . . . . 3,065,000
46,500 Procter & Gamble Co. . . . . . . . . . . . . . . 3,821,719
----------------
12,747,238
----------------
ELECTRICAL - 1.98%
32,500 General Electric Co. . . . . . . . . . . . . . . 2,766,563
----------------
ENERGY - 3.77%
42,000 Baker Hughes, Inc. . . . . . . . . . . . . . . . 1,701,000
43,000 Schlumberger, Ltd. . . . . . . . . . . . . . . . 3,563,625
----------------
5,264,625
----------------
ENTERTAINMENT AND LEISURE - 2.76%
31,000 Walt Disney Co . . . . . . . . . . . . . . . . . 3,853,688
----------------
FINANCE - 4.05%
27,000 American Express Co. . . . . . . . . . . . . . . 2,754,000
22,000 American International Group, Inc. . . . . . . . 2,894,375
----------------
5,648,375
----------------
FOOD AND BEVERAGE - 2.82%
52,000 Coca-Cola Co.. . . . . . . . . . . . . . . . . . 3,945,500
----------------
HEALTH CARE SERVICES - 7.82%
60,000 Eli Lilly & Co. . . . . . . . . . . . . . . . . 4,173,750
53,000 Johnson & Johnson. . . . . . . . . . . . . . . . 3,782,875
26,100 Pfizer, Inc. . . . . . . . . . . . . . . . . . . 2,970,506
----------------
10,927,131
----------------
Market
Shares Value
- ------ -----
<C> <S> <C>
LODGING - 1.51%
32,400 Marriott International, Inc. . . . . . . . . . . $ 1,069,200
32,400 Marriott International, Inc., Class A. . . . . . 1,036,800
----------------
2,106,000
----------------
MEDICAL SUPPLIES - 2.19%
58,000 Medtronic, Inc. . . . . . . . . . . . . . . . . 3,052,250
----------------
PHARMACEUTICALS - 4.66%
36,500 Bristol-Myers Squibb Co. . . . . . . . . . . . . 3,864,437
22,000 Merck & Co., Inc. . . . . . . . . . . . . . . . 2,651,000
----------------
6,515,437
----------------
RESTAURANTS - 3.85%
38,700 Cracker Barrell Old Country Store, Inc. . . . . 1,422,225
64,000 McDonald's Corp. . . . . . . . . . . . . . . . . 3,960,000
----------------
5,382,225
----------------
RETAIL - 3.98%
54,000 Gap, Inc. . . . . . . . . . . . . . . . . . . . 2,777,625
40,000 Home Depot, Inc. . . . . . . . . . . . . . . . . 2,785,000
----------------
5,562,625
----------------
TECHNOLOGY - 9.38%
43,500 Boston Scientific Corp.* . . . . . . . . . . . . 3,145,593
36,200 Cisco Systems, Inc.* . . . . . . . . . . . . . . 2,651,650
39,000 Electronic Arts, Inc.* . . . . . . . . . . . . . 1,803,750
11,500 Intel Corp . . . . . . . . . . . . . . . . . . . 929,344
28,100 Microsoft Corp.* . . . . . . . . . . . . . . . . 2,532,513
46,000 Solectron Corp.* . . . . . . . . . . . . . . . . 2,038,375
----------------
13,101,225
----------------
TELECOMMUNICATIONS - 1.87%
50,700 Ericsson (LM) Telefonaktiebolaget, ADR
Class B, Series 10 . . . . . . . . . . . . . . . 2,607,881
----------------
TOTAL COMMON STOCKS. . . . . . . . . . . . . . . 85,454,763
(Cost $63,527,739) ----------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
ALLEGHANY FUNDS
MONTAG & CALDWELL BALANCED FUND
SCHEDULE OF INVESTMENTS - CONTINUED (UNAUDITED) APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- -----
<C> <S> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 25.66%
U.S. TREASURY NOTES - 15.12%
$ 3,000,000 6.250%, 08/31/00 . . . . . . . . . . . . . . . . $ 3,041,760
3,000,000 6.250%, 04/30/01 . . . . . . . . . . . . . . . . 3,051,450
3,500,000 6.625%, 04/30/02 . . . . . . . . . . . . . . . . 3,618,020
3,000,000 5.750%, 08/15/03 . . . . . . . . . . . . . . . . 3,011,880
1,000,000 7.875%, 11/15/04 . . . . . . . . . . . . . . . . 1,115,560
3,500,000 6.500%, 10/15/06 . . . . . . . . . . . . . . . . 3,668,875
3,500,000 6.250%, 02/15/07 . . . . . . . . . . . . . . . . 3,619,000
----------------
21,126,545
----------------
U.S. TREASURY BONDS - 5.29%
2,500,000 7.250%, 05/15/16 . . . . . . . . . . . . . . . . 2,841,425
2,000,000 8.000%, 11/15/21 . . . . . . . . . . . . . . . . 2,486,020
2,000,000 6.250%, 08/15/23 . . . . . . . . . . . . . . . . 2,056,460
----------------
7,383,905
----------------
FEDERAL LOAN HOME BANK - 0.36%
500,000 6.940%, 02/12/04 . . . . . . . . . . . . . . . . 503,200
----------------
FEDERAL HOME LOAN
MORTGAGE CORPORATION - 3.07%
750,000 6.400%, 12/13/06, Debenture. . . . . . . . . . . 767,858
1,750,000 6.700%, 01/05/07, Series B . . . . . . . . . . . 1,832,932
600,000 7.500%, 03/15/07, CMO, Class J . . . . . . . . . 610,368
175,000 6.000%, 04/15/08, CMO, Class K . . . . . . . . . 174,386
500,000 6.500%, 07/15/20, CMO, Class F . . . . . . . . . 500,190
400,000 6.500%, 11/15/20, CMO, Class H . . . . . . . . . 400,580
----------------
4,286,314
----------------
FEDERAL NATIONAL
MORTGAGE ASSOCIATION - 1.82%
500,000 7.070%, 03/08/11, MTN. . . . . . . . . . . . . . 500,050
2,000,000 7.250%, 01/17/21, CMO, REMIC . . . . . . . . . . 2,038,060
----------------
2,538,110
----------------
GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION - 0.00% (A)
3,659 8.500%, 06/15/01 . . . . . . . . . . . . . . . . 3,827
2,379 9.000%, 09/15/08 . . . . . . . . . . . . . . . . 2,548
----------------
6,375
----------------
TOTAL U.S. GOVERNMENT
AND AGENCY OBLIGATIONS . . . . . . . . . . . . . 35,844,449
(Cost $35,767,617) ----------------
<CAPTION>
Market
Par Value Value
- --------- -----
<S> <C> <C>
CORPORATE NOTES AND BONDS - 10.35%
CONSUMER NON-DURABLE - 1.45%
$ 2,000,000 NIKE, Inc.
6.375%, 12/01/03 . . . . . . . . . . . . . . . . $ 2,025,000
----------------
FINANCE - 7.04%
1,500,000 American Express Co., Senior Notes
6.750%, 06/23/04 . . . . . . . . . . . . . . . . 1,543,125
55,000 American General Finance Senior Notes
7.200%, 07/08/99 . . . . . . . . . . . . . . . . 55,756
2,500,000 Citicorp Subordinated Notes
7.125%, 05/15/06 . . . . . . . . . . . . . . . . 2,609,375
500,000 First National Bank Commerce
Senior Notes, MTN
6.500%, 01/14/00 . . . . . . . . . . . . . . . . 503,750
750,000 General Motors Acceptance Corp.
7.125%, 05/01/03 . . . . . . . . . . . . . . . . 775,313
1,000,000 Household Finance Corp.
7.250%, 05/15/06 . . . . . . . . . . . . . . . . 1,052,500
500,000 Household Finance Corp.
7.300%, 07/30/12 . . . . . . . . . . . . . . . . 516,875
285,000 Salomon Inc., Senior Notes
7.125%, 08/01/99 . . . . . . . . . . . . . . . . 289,343
500,000 Salomon, Inc.
7.300%, 05/15/02 . . . . . . . . . . . . . . . . 517,500
2,000,000 Salomon Smith Barney
6.250%, 01/15/05 . . . . . . . . . . . . . . . . 1,967,500
----------------
9,831,037
----------------
RETAIL - 1.86%
500,000 Penney (J.C.) & Co., Debenture
9.750%, 06/15/21 . . . . . . . . . . . . . . . . 556,875
2,000,000 Sears Roebuck Acceptance Corp.
6.700%, 11/15/06 . . . . . . . . . . . . . . . . 2,040,000
----------------
2,596,875
----------------
TOTAL CORPORATE NOTES AND BONDS. . . . . . . . . 14,452,912
(Cost $14,355,292) ----------------
ASSET-BACKED SECURITIES - 0.83%
1,150,000 Chase Auto Owner Trust
Series 1997-B, Class A3
6.350%, 02/15/01 . . . . . . . . . . . . . . . . 1,156,963
----------------
TOTAL ASSET-BACKED SECURITIES. . . . . . . . . . 1,156,963
(Cost $1,150,469) ----------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
ALLEGHANY FUNDS
MONTAG & CALDWELL BALANCED FUND
SCHEDULE OF INVESTMENTS - CONTINUED (UNAUDITED) APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value
- ------ -----
<C> <S> <C>
INVESTMENT COMPANIES - 1.51%
1,897,563 Bankers Trust Institutional
Cash Management Fund . . . . . . . . . . . . . . $ 1,897,563
212,220 Bankers Trust Institutional
Treasury Money Fund. . . . . . . . . . . . . . . 212,220
----------------
TOTAL INVESTMENT COMPANIES . . . . . . . . . . . 2,109,783
(Cost $2,109,783) ----------------
TOTAL INVESTMENTS - 99.53% . . . . . . . . . . . . . . . . . . 139,018,870
(Cost $116,910,900)** ----------------
NET OTHER ASSETS AND LIABILITIES - 0.47% . . . . . . . . . . . 651,636
----------------
NET ASSETS - 100.00% . . . . . . . . . . . . . . . . . . . . . $ 139,670,506
----------------
----------------
</TABLE>
- --------------------
<TABLE>
<CAPTION>
<S> <C>
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is $116,910,900.
Gross unrealized appreciation $ 22,531,686
Gross unrealized (depreciation) (423,716)
-------------
Net unrealized appreciation $ 22,107,970
-------------
-------------
(A) Amount represents less than 0.1%
ADR American Depositary Receipt
CMO Collateralized Mortgage Obligation
MTN Medium Term Note
REMIC Real Estate Mortgage Investment Conduit
<CAPTION>
<S> <C>
PORTFOLIO COMPOSITION (Moody's Ratings)
Common Stock 61%
U.S. Government Obligations 21%
U.S. Government Agency Obligations 5%
Investment Company 2%
Rated Corporate Notes and Bonds:
Aaa 1%
A 10%
-----
100%
-----
-----
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
ALLEGHANY FUNDS
CHICAGO TRUST BOND FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- -----
<C> <S> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 43.89%
U.S. TREASURY NOTES - 17.31%
$ 1,250,000 5.120%, 11/30/98 . . . . . . . . . . . . . . . . $ 1,248,050
2,500,000 5.500%, 02/28/99 . . . . . . . . . . . . . . . . 2,500,375
2,500,000 7.120%, 02/29/00 . . . . . . . . . . . . . . . . 2,566,375
2,500,000 7.875%, 08/15/01 . . . . . . . . . . . . . . . . 2,665,250
3,000,000 6.250%, 10/31/01 . . . . . . . . . . . . . . . . 3,056,430
2,000,000 7.500%, 05/15/02 . . . . . . . . . . . . . . . . 2,130,380
4,500,000 6.370%, 08/15/02 . . . . . . . . . . . . . . . . 4,618,800
2,500,000 5.750%, 08/15/03 . . . . . . . . . . . . . . . . 2,509,900
3,000,000 7.250%, 05/15/04 . . . . . . . . . . . . . . . . 3,234,630
----------------
24,530,190
----------------
U.S. TREASURY BONDS - 3.82%
2,500,000 7.125%, 02/15/23 . . . . . . . . . . . . . . . . 2,846,000
2,500,000 6.250%, 08/15/23 . . . . . . . . . . . . . . . . 2,570,575
----------------
5,416,575
----------------
FEDERAL HOME LOAN
MORTGAGE CORPORATION - 8.15%
2,500,000 5.850%, 02/21/06, Debenture . . . . . . . . . . 2,472,025
1,000,000 6.500%, 09/15/07, CMO . . . . . . . . . . . . . 1,016,750
500,000 5.750%, 01/15/08, CMO. . . . . . . . . . . . . . 493,985
495,164 7.500%, 04/01/08, Debenture. . . . . . . . . . . 510,019
1,500,000 6.000%, 03/15/09, CMO . . . . . . . . . . . . . 1,453,005
1,273,211 6.500%, 06/01/09, CMO . . . . . . . . . . . . . 1,280,366
1,561,912 6.500%, 01/01/11 . . . . . . . . . . . . . . . . 1,570,690
1,381,774 6.500%, 11/01/11 . . . . . . . . . . . . . . . . 1,389,539
1,400,000 6.000%, 12/15/23, CMO . . . . . . . . . . . . . 1,358,686
----------------
11,545,065
----------------
FEDERAL NATIONAL
MORTGAGE ASSOCIATION - 7.71%
2,500,000 5.625%, 03/15/01 . . . . . . . . . . . . . . . . 2,490,950
995,986 6.900%, 12/25/03, CMO . . . . . . . . . . . . . 1,008,505
375,604 7.000%, 07/01/08 . . . . . . . . . . . . . . . . 382,646
1,337,042 7.000%, 05/01/12 . . . . . . . . . . . . . . . . 1,362,111
2,338,679 7.000%, 01/01/13 . . . . . . . . . . . . . . . . 2,382,529
1,485,134 7.000%, 03/01/13 . . . . . . . . . . . . . . . . 1,512,980
710,128 9.000%, 05/01/25 . . . . . . . . . . . . . . . . 751,401
1,047,739 6.500%, 02/01/26 . . . . . . . . . . . . . . . . 1,037,586
----------------
10,928,708
----------------
GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION - 6.90%
806,042 8.000%, 06/15/17 . . . . . . . . . . . . . . . . 837,018
1,285,371 7.000%, 10/15/23 . . . . . . . . . . . . . . . . 1,301,438
1,339,687 7.000%, 10/15/23 . . . . . . . . . . . . . . . . 1,356,433
1,387,579 6.500%, 03/15/26 . . . . . . . . . . . . . . . . 1,375,868
<CAPTION>
Market
Par Value Value
- --------- -----
<C> <S> <C>
GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION (CONTINUED)
$ 2,371,399 7.000%, 06/15/27 . . . . . . . . . . . . . . . . $ 2,409,935
1,224,660 7.000%, 08/20/27 . . . . . . . . . . . . . . . . 1,234,604
1,281,914 6.500%, 09/20/27 . . . . . . . . . . . . . . . . 1,265,480
----------------
9,780,776
----------------
TOTAL U.S. GOVERNMENT
AND AGENCY OBLIGATIONS . . . . . . . . . . . . . 62,201,314
(Cost $61,145,573) ----------------
CORPORATE NOTES AND BONDS - 38.01%
CABLE TELEVISION - 1.23%
1,500,000 Continental Cablevision, Debenture
9.500%, 08/01/13 . . . . . . . . . . . . . . . . 1,747,500
----------------
ENERGY - 2.74%
2,000,000 Ashland, Inc.
6.625%, 02/15/08 (A) . . . . . . . . . . . . . . 1,995,294
700,000 Petroliam Nasional Berhad
7.125%, 10/18/06 (A) . . . . . . . . . . . . . . 655,375
1,250,000 Williams Co., Inc.
5.950%, 02/15/00 (A) . . . . . . . . . . . . . . 1,232,813
----------------
3,883,482
----------------
FINANCE - 20.20%
1,250,000 Advanta Corp., MTN
7.000%, 05/01/01 . . . . . . . . . . . . . . . . 1,154,688
1,250,000 Associates Corp. NA
6.375%, 08/15/98 . . . . . . . . . . . . . . . . 1,251,475
1,250,000 Chelsea GCA Realty Partnership, REIT
7.250%, 10/21/07 . . . . . . . . . . . . . . . . 1,275,000
1,500,000 Continental Corp. Notes
7.250%, 03/01/03 . . . . . . . . . . . . . . . . 1,541,250
1,000,000 Goldman Sachs Group LP
6.200%, 12/15/00 (A) . . . . . . . . . . . . . . 1,000,000
500,000 Goldman Sachs Group LP
6.250%, 02/01/03 (A) . . . . . . . . . . . . . . 498,750
2,500,000 HSBC America Capital II
8.380%, 05/15/27 (A) . . . . . . . . . . . . . . 2,621,875
1,750,000 Heller Financial, Inc.
5.625%, 03/15/00 . . . . . . . . . . . . . . . . 1,734,688
1,275,000 John Deere Capital Corp., Debenture
8.625%, 08/01/19 . . . . . . . . . . . . . . . . 1,392,938
1,000,000 Leucadia National Corp.
Senior Subordinated Notes
8.250%, 06/15/05 . . . . . . . . . . . . . . . . 1,063,750
750,000 Leucadia National Corp.
Senior Subordinated Notes
7.875%, 10/15/06 . . . . . . . . . . . . . . . . 782,813
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
ALLEGHANY FUNDS
CHICAGO TRUST BOND FUND
SCHEDULE OF INVESTMENTS - CONTINUED (UNAUDITED) APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- -----
<C> <S> <C>
FINANCE (CONTINUED)
$ 3,500,000 Merrill Lynch & Co., Inc.
7.000%, 04/27/08 . . . . . . . . . . . . . . . . $ 3,666,250
3,000,000 Metropolitan Life Insurance Co.
6.300%, 11/01/03 (A) . . . . . . . . . . . . . . 2,988,750
1,000,000 Olympic Financial Ltd.
11.500%, 03/15/07. . . . . . . . . . . . . . . . 995,000
1,520,000 Pacific Mutual Life Insurance Co.
7.900%, 12/30/23 (A) . . . . . . . . . . . . . . 1,656,800
2,000,000 Prudential Insurance Co. of America
8.300%, 07/01/25 (A) . . . . . . . . . . . . . . 2,235,000
700,000 SB Treasury Co., LLC
9.400%, 12/29/49 (A) . . . . . . . . . . . . . . 721,875
2,000,000 Wells Fargo Capital
7.730%, 12/01/26 (A) . . . . . . . . . . . . . . 2,052,500
----------------
28,633,402
----------------
FOOD AND BEVERAGE - 2.16%
500,000 Nabisco, Inc.
6.700%, 06/15/02 . . . . . . . . . . . . . . . . 506,875
2,500,000 Nabisco, Inc.
6.850%, 06/15/05 . . . . . . . . . . . . . . . . 2,546,875
----------------
3,053,750
----------------
HEALTHCARE SERVICES - 0.91%
1,300,000 Columbia Healthcare
6.1250%12-15-2000. . . . . . . . . . . . . . . . 1,285,375
----------------
PRINTING AND PUBLISHING - 2.17%
1,500,000 News America Holdings
7.750%, 01/20/24 . . . . . . . . . . . . . . . . 1,582,500
1,329,000 Time Warner, Inc., Series M
10.250%, 07/01/16. . . . . . . . . . . . . . . . 1,490,141
----------------
3,072,641
----------------
RETAIL - 1.06%
1,500,000 K-mart Corp., Debenture
7.950%, 02/01/23 . . . . . . . . . . . . . . . . 1,507,500
----------------
TRANSPORTATION - 0.48%
413,123 Delta Air Lines, Inc.
Equipment Trust, Series 1992A
8.540%, 01/02/07 . . . . . . . . . . . . . . . . 445,380
203,489 Delta Air Lines, Inc.
9.375%, 09/11/07 . . . . . . . . . . . . . . . . 226,891
----------------
672,271
----------------
<CAPTION>
Market
Par Value Value
- --------- -----
<C> <S> <C>
UTILITIES - 7.06%
$ 1,825,000 Calenergy Co., Inc.
7.630%, 10/15/07 . . . . . . . . . . . . . . . . $ 1,829,563
1,000,000 Commonwealth Edison Co., First Mortgage
7.750%, 07/15/23 . . . . . . . . . . . . . . . . 1,027,500
2,000,000 Gulf States Utilities, First Mortgage, Series A
8.250%, 04/01/04 . . . . . . . . . . . . . . . . 2,155,000
1,250,000 Long Island Lighting Co., Debenture
9.000%, 11/01/22 . . . . . . . . . . . . . . . . 1,421,875
1,500,000 Niagra Mohawk Power, First Mortgage
8.000%, 06/01/04 . . . . . . . . . . . . . . . . 1,601,250
2,000,000 Philadelphia Electric Co., First Mortgage
5.625%, 11/01/01 . . . . . . . . . . . . . . . . 1,972,500
----------------
10,007,688
----------------
TOTAL CORPORATE NOTES AND BONDS. . . . . . . . . 53,863,609
(Cost $52,332,878) ----------------
YANKEE BONDS - 5.01%
3,000,000 Chilgener S.A. Yankee (Chile)
6.500%, 01/15/06 . . . . . . . . . . . . . . . . 2,838,750
1,699,505 Province of Mendoza
Collateral Oil Royalty Note
10.000%, 07/25/02 (A). . . . . . . . . . . . . . 1,755,402
2,500,000 Skandinaviska Enskilda, Subordinated Notes
6.625%, 03/29/49 (A) . . . . . . . . . . . . . . 2,500,000
----------------
TOTAL YANKEE BONDS . . . . . . . . . . . . . . . 7,094,152
(Cost $7,144,224) ----------------
GOVERNMENT TRUST CERTIFICATE - 0.39%
540,707 Israel Collateral Trust, Class 1-C
9.250%, 11/15/01 . . . . . . . . . . . . . . . . 558,280
----------------
TOTAL GOVERNMENT TRUST CERTIFICATE . . . . . . . 558,280
(Cost $591,660) ----------------
ASSET-BACKED SECURITIES - 6.23%
1,750,000 BA Mortgage Securities, CMO
7.350%, 07/25/26 . . . . . . . . . . . . . . . . 1,758,202
2,500,000 Chemical Master Credit Card Trust I, Class A
5.550%, 09/15/03 . . . . . . . . . . . . . . . . 2,478,575
750,000 Citibank Credit Card Master Trust I, Class A
6.839%, 02/10/04 . . . . . . . . . . . . . . . . 763,380
3,000,000 Countrywide Home Loans, CMO
6.750%, 04/25/28 . . . . . . . . . . . . . . . . 2,917,500
875,000 Midland Realty Acceptance Corp., CMO
7.475%, 08/25/28 . . . . . . . . . . . . . . . . 919,023
----------------
TOTAL ASSET-BACKED SECURITIES. . . . . . . . . . 8,836,680
(Cost $8,789,582) ----------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
ALLEGHANY FUNDS
CHICAGO TRUST BOND FUND
SCHEDULE OF INVESTMENTS - CONTINUED (UNAUDITED) APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- -----
<C> <S> <C>
REPURCHASE AGREEMENT - 5.48%
$ 7,771,000 First Chicago,
5.400%, dated 04/30/98 to be repurchased
on 05/01/98 at $7,772,166
(Collateralized by U.S. Treasury Note
6.250%, due 05/31/00;
Total Par $7,645,000). . . . . . . . . . . . . . $ 7,771,000
----------------
TOTAL REPURCHASE AGREEMENT . . . . . . . . . . . 7,771,000
(Cost $7,771,000) ----------------
TOTAL INVESTMENTS - 99.01% . . . . . . . . . . . . . . . . . . 140,325,035
(Cost $137,774,917)* ----------------
NET OTHER ASSETS AND LIABILITIES - 0.99% . . . . . . . . . . . 1,401,830
----------------
NET ASSETS - 100.00% . . . . . . . . . . . . . . . . . . . . . $ 141,726,865
----------------
----------------
</TABLE>
- --------------------
* Aggregate cost for Federal income tax purposes is $137,774,917.
<TABLE>
<S> <C>
Gross unrealized appreciation $ 2,956,200
Gross unrealized (depreciation) (406,082)
------------
Net unrealized appreciation $ 2,550,118
------------
------------
</TABLE>
(A) Securities exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold, in
transactions exempt from registration, to qualified institutional
buyers. At April 30, 1998, these securities amounted to
$21,914,434 or 15.46% of net assets.
CMO Collateralized Mortgage Obligation
MTN Medium Term Note
REIT Real Estate Investment Trust
<TABLE>
<S> <C>
PORTFOLIO COMPOSITION (Moody's Ratings)
Repurchase Agreement 6%
U.S. Government Obligations 21%
U.S. Government Agency Obligations 23%
Rated Corporate Notes and Bonds:
Aaa 6%
AA 3%
A 12%
Baa 16%
Ba 9%
B 3%
NR 1%
-----
100%
-----
-----
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
ALLEGHANY FUNDS
CHICAGO TRUST MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- -----
<C> <S> <C>
MUNICIPAL SECURITIES - 96.75%
ARIZONA - 8.16%
$ 350,000 Mohave County, IDA
6.000%, 07/01/00 . . . . . . . . . . . . . . . . $ 363,608
450,000 Salt River Project Electric System Revenue
Refunding, Series A
5.500%, 01/01/05 . . . . . . . . . . . . . . . . 475,384
200,000 Tucson, Arizona Water Revenue
5.400%, 07/01/05 . . . . . . . . . . . . . . . . 210,788
----------------
1,049,780
----------------
CALIFORNIA - 2.01%
250,000 California State
5.250%, 10/01/10 . . . . . . . . . . . . . . . . 258,437
----------------
FLORIDA - 2.89%
265,000 Dade County, Florida State School District, G.O.
5.000%, 07/15/02
Insured: MBIA. . . . . . . . . . . . . . . . . . 272,044
100,000 St. Lucie County, Florida Pollution
Control Revenue
4.200%, 01/01/26 . . . . . . . . . . . . . . . . 100,000
----------------
372,044
----------------
GEORGIA - 3.97%
250,000 State of Georgia, Series A, G.O.
6.100%, 03/01/05 . . . . . . . . . . . . . . . . 274,375
200,000 State of Georgia, Series D, G.O.
6.700%, 08/01/09 . . . . . . . . . . . . . . . . 236,110
----------------
510,485
----------------
ILLINOIS - 4.10%
250,000 Chicago, Illinois Metropolitan Water
Reclamation, G.O.
6.600%, 01/01/02 . . . . . . . . . . . . . . . . 269,220
250,000 State of Illinois, G.O.
5.150%, 09/01/02
Insured: FGIC. . . . . . . . . . . . . . . . . . 257,682
----------------
526,902
----------------
MICHIGAN - 6.51%
250,000 Lanse Creuse Public Schools
5.000%, 05/01/03 . . . . . . . . . . . . . . . . 257,122
300,000 Clarkston Community Schools
5.000%, 05/01/06 . . . . . . . . . . . . . . . . 307,554
260,000 Utica Community Schools
5.375%, 05/01/04 . . . . . . . . . . . . . . . . 272,407
----------------
837,083
----------------
<CAPTION>
Market
Par Value Value
- --------- -----
<C> <S> <C>
MINNESOTA - 3.49%
$ 200,000 Shakopee Independent School District, G.O.
4.500%, 02/01/06 . . . . . . . . . . . . . . . . $ 199,212
245,000 St. Paul Housing Finance Board Revenue
5.050%, 11/01/07 . . . . . . . . . . . . . . . . 250,456
----------------
449,668
----------------
NEVADA - 3.00%
350,000 Clark County, Nevada School District, G.O.
6.400%, 06/15/06
Insured: FGIC. . . . . . . . . . . . . . . . . . 386,319
----------------
NEW JERSEY - 6.92%
295,000 Camden County
Municipal Utilities Authority Revenue
6.000%, 07/15/04 . . . . . . . . . . . . . . . . 319,210
350,000 State of New Jersey Transportation
Trust Fund Revenue, Series A
Escrowed to Maturity
5.200%, 12/15/00
Insured: AMBAC . . . . . . . . . . . . . . . . . 360,070
200,000 State of New Jersey, Series D, G.O.
5.500%, 02/15/04 . . . . . . . . . . . . . . . . 211,650
----------------
890,930
----------------
NEW YORK - 6.00%
250,000 Municipal Assistance Corporation
4.500%, 07/01/01 . . . . . . . . . . . . . . . . 251,895
250,000 New York City Transitional Finance
Authority Revenue
5.500%, 08/15/08 . . . . . . . . . . . . . . . . 264,063
250,000 New York State Dormitory Authority
Revenue, Series C
5.100%, 05/15/03 . . . . . . . . . . . . . . . . 256,297
----------------
772,255
----------------
OHIO - 1.60%
200,000 Ohio State Public Facilities Commission
(Higher Education), Series II-A
5.200%, 05/01/01
Insured: AMBAC . . . . . . . . . . . . . . . . . 205,474
----------------
OKLAHOMA - 2.80%
350,000 Tulsa, Oklahoma Metropolitan Utilities
Authority Revenue
5.500%, 07/01/00 . . . . . . . . . . . . . . . . 359,979
----------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
ALLEGHANY FUNDS
CHICAGO TRUST MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS - CONTINUED (UNAUDITED) APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- -----
<C> <S> <C>
OREGON - 2.10%
$ 250,000 Portland, Oregon Series A, G.O.
7.000%, 06/01/01 . . . . . . . . . . . . . . . . $ 270,375
----------------
PENNSYLVANIA - 1.58%
200,000 Commonwealth of Pennsylvania, G.O.
5.250%, 05/15/99
Insured: FGIC. . . . . . . . . . . . . . . . . . 203,002
----------------
PUERTO RICO - 3.42%
400,000 Commonwealth of Puerto Rico,
Series A, G.O.
6.500%, 07/01/03
Insured: MBIA. . . . . . . . . . . . . . . . . . 440,372
----------------
RHODE ISLAND - 2.27%
275,000 State of Rhode Island, Series A, G.O.
6.000%, 06/15/02
Insured: FGIC. . . . . . . . . . . . . . . . . . 291,789
----------------
TEXAS - 13.04%
375,000 Arlington Independent School District
Refunding, G.O.
5.400%, 02/15/99 . . . . . . . . . . . . . . . . 379,759
200,000 Humble Independent School District
Refunding, G.O.
5.500%, 02/15/10 . . . . . . . . . . . . . . . . 212,386
200,000 Round Rock Independent School District
Refunding, G.O.
4.700%, 08/01/09 . . . . . . . . . . . . . . . . 198,366
210,000 Tarrant County Health Facilities
Development Corp.
Health System Revenue, Series A
5.500%, 02/15/05 . . . . . . . . . . . . . . . . 220,901
200,000 Texas State Public Finance Authority
Series A, G.O.
5.600%, 10/01/02 . . . . . . . . . . . . . . . . 210,232
450,000 Texas State Water Development Board, G.O.
Escrowed to Maturity
5.000%, 08/01/99 . . . . . . . . . . . . . . . . 456,502
----------------
1,678,146
----------------
<CAPTION>
Market
Par Value Value
- --------- -----
<C> <S> <C>
UTAH - 8.51%
$ 300,000 Intermountain Power Agency
Power Supply Revenue
6.250%, 07/01/07 . . . . . . . . . . . . . . . . $ 334,530
200,000 Jordan School District, Series A, G.O.
5.250%, 06/15/00 . . . . . . . . . . . . . . . . 204,614
350,000 Tooele County, Utah Hazardous Waste
Treatment Revenue
5.700%, 11/01/26 . . . . . . . . . . . . . . . . 348,922
200,000 Utah State Building Ownership Authority
Lease Revenue, Series A
5.125%, 05/15/03 . . . . . . . . . . . . . . . . 206,488
----------------
1,094,554
----------------
VIRGINIA - 6.03%
250,000 Henrico County, Virginia
Industrial Redevelopment
Authority Revenue
5.300%, 12/01/11 . . . . . . . . . . . . . . . . 260,375
250,000 Virginia State Housing Development Authority
Commonwealth Mortgage, Series H
4.750%, 07/01/07 . . . . . . . . . . . . . . . . 250,908
250,000 Virginia State Public School
Authority Revenue
5.500%, 08/01/03 . . . . . . . . . . . . . . . . 265,128
----------------
776,411
----------------
WASHINGTON - 3.94%
475,000 King County, Washington, Series A, G.O.
5.800%, 01/01/04 . . . . . . . . . . . . . . . . 507,476
----------------
WISCONSIN - 4.41%
300,000 Wisconsin Housing & Economic Development
Authority Home Ownership Revenue
Series A
5.375%, 09/01/17 . . . . . . . . . . . . . . . . 299,439
250,000 State of Wisconsin, Series A, G.O.
5.750%, 05/01/04 . . . . . . . . . . . . . . . . 267,363
----------------
566,802
----------------
TOTAL MUNICIPAL SECURITIES . . . . . . . . . . . 12,448,283
(Cost $12,183,820) ----------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
ALLEGHANY FUNDS
CHICAGO TRUST MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS - CONTINUED (UNAUDITED) APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value
- ------ -----
<C> <S> <C>
INVESTMENT COMPANIES - 3.73%
267,919 Goldman Sachs Tax Exempt Fund . . . . . . . . . $ 267,919
212,531 Provident Munifund . . . . . . . . . . . . . . . 212,531
----------------
TOTAL INVESTMENT COMPANIES . . . . . . . . . . . 480,450
(Cost $480,450) ----------------
TOTAL INVESTMENTS - 100.48%. . . . . . . . . . . . . . . . . . 12,928,733
(Cost $12,664,270)* ----------------
LIABILITIES NET OF CASH AND OTHER ASSETS - (0.48%) . . . . . . (61,736)
----------------
NET ASSETS - 100.00% . . . . . . . . . . . . . . . . . . . . . $ 12,866,997
----------------
----------------
</TABLE>
- --------------------
* Aggregate cost for Federal income tax purposes is $12,664,270.
<TABLE>
<S> <C>
Gross unrealized appreciation $ 286,175
Gross unrealized (depreciation) (21,712)
----------
Net unrealized appreciation $ 264,463
----------
----------
</TABLE>
AMBAC American Municipal Board Assurance Corp.
FGIC Federal Guaranty Insurance Corp.
G.O. General Obligation
IDA Industrial Development Authority
MBIA Municipal Bond Insurance Association
<TABLE>
<S> <C>
PORTFOLIO COMPOSITION (Moody's Ratings)
Investment Companies 4%
Rated Corporate Notes and Bonds:
Aaa 51%
Aa 31%
A 8%
Baa 3%
NR 3%
-----
100%
-----
-----
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
ALLEGHANY FUNDS
CHICAGO TRUST MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Amortized
Par Value Cost
- --------- ----
<C> <S> <C>
COMMERCIAL PAPER - 84.46%
$ 2,600,000 Heller Financial, Inc.
5.754%, 05/01/98 . . . . . . . . . . . . . . . . $ 2,600,000
3,900,000 Sears Roebuck Acceptance Corp.
5.587%, 05/01/98 . . . . . . . . . . . . . . . . 3,900,000
4,000,000 Northern Trust Co.
5.291%, 05/04/98 (A) . . . . . . . . . . . . . . 3,998,167
10,000,000 BankAmerica Corp.
6.150%, 05/05/98 . . . . . . . . . . . . . . . . 10,000,342
1,900,000 Transamerica Financial Group
5.556%, 05/05/98 (A) . . . . . . . . . . . . . . 1,898,835
3,022,000 Transamerica Finance Group
5.527%, 05/06/98 (A) . . . . . . . . . . . . . . 3,019,687
10,000,000 Norwest Financial, Inc.
5.556%, 05/07/98 . . . . . . . . . . . . . . . . 10,000,000
6,000,000 General Electric Capital Corp.
5.568%, 05/08/98 . . . . . . . . . . . . . . . . 6,000,000
12,660,000 Toyota Motor Credit Corp.
0.000%, 05/08/98 (A) . . . . . . . . . . . . . . 12,646,412
2,500,000 Sears Roebuck Acceptance Corp.
5.581%, 05/11/98 . . . . . . . . . . . . . . . . 2,500,000
6,500,000 IBM Credit Corp.
5.518%, 05/11/98 . . . . . . . . . . . . . . . . 6,500,000
12,000,000 Pitney Bowes Credit Corp.
5.513%, 05/13/98 (A) . . . . . . . . . . . . . . 11,978,040
1,175,000 General Electric Capital Corp.
5.583%, 05/15/98 . . . . . . . . . . . . . . . . 1,175,000
2,500,000 Household Finance Corp.
5.570%, 05/15/98 . . . . . . . . . . . . . . . . 2,500,000
2,200,000 Sears Roebuck Acceptance Corp.
5.573%, 05/15/98 . . . . . . . . . . . . . . . . 2,200,000
1,200,000 General Electric Capital Corp.
5.577%, 05/18/98 . . . . . . . . . . . . . . . . 1,200,000
5,000,000 Bell Atlantic
5.528%, 05/19/98 (A) . . . . . . . . . . . . . . 4,986,225
3,000,000 General Motors Acceptance Corp.
5.537%, 05/19/98 . . . . . . . . . . . . . . . . 3,000,000
1,057,000 Transamerica Financial Group
5.543%, 05/19/98 (A) . . . . . . . . . . . . . . 1,054,083
5,000,000 Commercial Credit Co.
5.529%, 05/20/98 . . . . . . . . . . . . . . . . 5,000,000
6,000,000 IBM Credit Corp.
5.536%, 05/21/98 . . . . . . . . . . . . . . . . 6,000,000
3,000,000 Beneficial Corp. Int Bearing
5.509%, 05/21/98 . . . . . . . . . . . . . . . . 3,000,000
2,300,000 Associates Corp. of North America
5.547%, 05/22/98 . . . . . . . . . . . . . . . . 2,300,000
6,000,000 Associates Corp. N. A.
5.570%, 05/22/98 . . . . . . . . . . . . . . . . 6,000,000
<CAPTION>
Amortized
Par Value Cost
- --------- ----
<C> <S> <C>
COMMERCIAL PAPER (CONTINUED)
$ 3,400,000 Sears Roebuck Acceptance Corp.
5.563%, 05/26/98 . . . . . . . . . . . . . . . . $ 3,400,000
4,500,000 Household Finance Corp.
5.540%, 05/26/98 . . . . . . . . . . . . . . . . 4,500,000
6,700,000 Prudential Funding Corp.
5.541%, 05/27/98 . . . . . . . . . . . . . . . . 6,700,000
5,000,000 Transamerica Financial
5.548%, 05/28/98 (A) . . . . . . . . . . . . . . 4,979,338
4,000,000 American Express Credit Corp.
5.536%, 06/02/98 . . . . . . . . . . . . . . . . 4,000,000
5,000,000 Household Finance Corp.
5.534%, 06/03/98 . . . . . . . . . . . . . . . . 5,000,000
1,500,000 Trans America Financial
5.537%, 06/05/98 (A) . . . . . . . . . . . . . . 1,491,979
5,500,000 Chrysler Financial Corp.
5.558%, 06/12/98 (A) . . . . . . . . . . . . . . 5,464,644
1,500,000 Chrysler Financial Corp.
6.500%, 06/15/98 . . . . . . . . . . . . . . . . 1,501,183
2,300,000 American Express Credit Corp.
5.536%, 06/17/98 . . . . . . . . . . . . . . . . 2,300,000
2,500,000 General Motors Acceptance Corp.
5.529%, 06/19/98 . . . . . . . . . . . . . . . . 2,500,000
7,000,000 Commercial Credit Co.
5.540%, 06/22/98 . . . . . . . . . . . . . . . . 7,000,000
10,000,000 Coca Cola Co.
5.597%, 06/22/98 (A) . . . . . . . . . . . . . . 9,919,833
6,000,000 Corestates Bank
5.520%, 07/10/98 . . . . . . . . . . . . . . . . 6,000,000
6,000,000 Ford Motor Credit Co.
5.551%, 07/14/98 . . . . . . . . . . . . . . . . 6,000,000
2,000,000 Ford Motor Credit Co.
5.562%, 07/16/98 . . . . . . . . . . . . . . . . 2,000,000
4,000,000 Ford Motor Credit Co.
5.556%, 07/16/98 . . . . . . . . . . . . . . . . 4,000,000
7,000,000 American General Finance
5.565%, 07/22/98 . . . . . . . . . . . . . . . . 7,000,000
6,000,000 Corestates Bank
5.600%, 09/25/98 . . . . . . . . . . . . . . . . 6,000,000
----------------
TOTAL COMMERCIAL PAPER . . . . . . . . . . . . . 203,213,768
(Cost $203,213,768) ----------------
GIC WITHIN FUNDING AGREEMENT - 4.16%
10,000,000 Allstate Life Funding Agreement GIC
5.758%,12/01/98. . . . . . . . . . . . . . . . . 10,000,000
----------------
TOTAL GIC WITHIN FUNDING AGREEMENT . . . . . . . 10,000,000
(Cost $10,000,000) ----------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
ALLEGHANY FUNDS
CHICAGO TRUST MONEY MARKET FUND
SCHEDULE OF INVESTMENTS - CONTINUED (UNAUDITED) APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Amortized
Par Value Cost
- --------- ----
<C> <S> <C>
TIME DEPOSITS - 5.07%
$ 5,400,000 Canadian Imperial of Commerce
5.560%,05/01/98. . . . . . . . . . . . . . . . . $ 5,400,000
4,300,000 Canadian Imperial of Commerce
5.560%,05/29/98. . . . . . . . . . . . . . . . . 4,300,000
2,500,000 Canadian Imperial of Commerce
5.530%,07/20/98. . . . . . . . . . . . . . . . . 2,500,000
----------------
TOTAL TIME DEPOSITS. . . . . . . . . . . . . . . 12,200,000
(Cost $12,200,000) ----------------
REPURCHASE AGREEMENTS - 5.99%
14,401,000 J P Morgan
5.350%,dated 04/30/98 to be repurchased
on 05/01/98 at $14,403,140
(Collateralized by U.S. Treasury Note
6.3750%, due 04/30/99)
Total Par $14,598,000. . . . . . . . . . . . . . 14,401,000
----------------
TOTAL REPURCHASE AGREEMENT . . . . . . . . . . . 14,401,000
(Cost $14,401,000) ----------------
TOTAL INVESTMENTS - 99.68% . . . . . . . . . . . . . . . . . . 239,814,768
(Cost $239,814,768)* ----------------
NET OTHER ASSETS AND LIABILITIES - 0.32% . . . . . . . . . . . 777,165
----------------
NET ASSETS - 100.00% . . . . . . . . . . . . . . . . . . . . . $ 240,591,933
----------------
----------------
</TABLE>
- --------------------
(A) Annualized yield at time of purchase
* At April 30, 1998, cost is identical for book and Federal income tax
purposes.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
ALLEGHANY FUNDS
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHICAGO TRUST
MONTAG & CALDWELL GROWTH & INCOME CHICAGO TRUST CHICAGO TRUST
GROWTH FUND FUND TALON FUND BALANCED FUND
----------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments:
Investments at cost. . . . . . . . . . . . . . . $ 1,054,534,406 $ 229,357,104 $ 27,761,023 $ 161,958,237
Repurchase agreements. . . . . . . . . . . . . . -- 8,823,000 -- 2,703,000
Net unrealized appreciation . . . . . . . . . . 324,066,354 116,411,960 4,283,327 49,364,728
--------------- -------------- ------------- -------------
Total investments at value . . . . . . . . . . . 1,378,600,760 354,592,064 32,044,350 214,025,965
Cash . . . . . . . . . . . . . . . . . . . . . . 10 -- 22 --
Receivables:
Dividends and interest . . . . . . . . . . . . . 1,108,576 59,676 29,848 1,185,993
Fund shares sold . . . . . . . . . . . . . . . . 3,717,826 221,059 100 275,000
Investments sold . . . . . . . . . . . . . . . . -- -- 483,647 --
Due from Advisor, net. . . . . . . . . . . . . . -- -- -- --
Deferred organization costs . . . . . . . . . . . 5,017 3,096 4,624 3,340
Prepaid Expenses . . . . . . . . . . . . . . . . . 16,990 6,074 1,233 3,091
--------------- -------------- ------------- -------------
Total assets. . . . . . . . . . . . . . . . 1,383,449,179 354,881,969 32,563,824 215,493,389
--------------- -------------- ------------- -------------
LIABILITIES:
Payables:
Bank overdraft . . . . . . . . . . . . . . . . . -- 1,560 -- 51,746
Dividend distribution. . . . . . . . . . . . . . -- -- -- --
Investments purchased. . . . . . . . . . . . . . 14,779,677 -- 1,887,663 --
Fund shares redeemed . . . . . . . . . . . . . . 5,178,790 144,634 10,002 24,942
Due to Advisor, net. . . . . . . . . . . . . . . 787,803 203,167 18,033 124,329
Distribution fee . . . . . . . . . . . . . . . . 148,408 142,864 11,654 192,837
Trustee fees . . . . . . . . . . . . . . . . . . 625 625 625 625
Accrued expenses . . . . . . . . . . . . . . . . . 285,402 56,474 12,798 66,009
--------------- -------------- ------------- -------------
Total liabilities . . . . . . . . . . . . . 21,180,705 549,324 1,940,775 460,488
--------------- -------------- ------------- -------------
NET ASSETS. . . . . . . . . . . . . . . . . . . . . . $ 1,362,268,474 $ 354,332,645 $ 30,623,049 $ 215,032,901
--------------- -------------- ------------- -------------
--------------- -------------- ------------- -------------
NET ASSETS CONSIST OF:
Capital paid-in . . . . . . . . . . . . . . . . . $ 1,011,878,933 $ 214,493,959 $ 25,578,542 $ 155,218,651
Accumulated undistributed (distribution
in excess of) net investment income (loss) . . . (853,902) (297,454) 33,390 540,989
Accumulated net realized gain (loss)
on investments . . . . . . . . . . . . . . . . . 27,177,089 23,724,180 727,790 9,908,533
Net unrealized appreciation
on investments . . . . . . . . . . . . . . . . . 324,066,354 116,411,960 4,283,327 49,364,728
--------------- -------------- ------------- -------------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . $ 1,362,268,474 $ 354,332,645 $ 30,623,049 $ 215,032,901
--------------- -------------- ------------- -------------
--------------- -------------- ------------- -------------
SHARES OF BENEFICIAL INTEREST OUTSTANDING . . . . . . 50,103,882 15,701,939 2,005,173 18,215,489
NET ASSET VALUE
Offering and redemption price per share
(Net Assets/Shares Outstanding). . . . . . . . . . $ (A) $ 22.57 $ 15.27 $ 11.80
--------------- -------------- ------------- -------------
--------------- -------------- ------------- -------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
<TABLE>
<CAPTION>
CHICAGO TRUST CHICAGO TRUST
MONTAG & CALDWELL CHICAGO TRUST MUNICIPAL BOND MONEY MARKET
BALANCED FUND BOND FUND FUND FUND
----------------- --------------- -------------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments:
Investments at cost. . . . . . . . . . . . . . . $ 116,910,900 $ 130,003,917 $ 12,664,270 $ 225,413,768
Repurchase agreements. . . . . . . . . . . . . . -- 7,771,000 -- 14,401,000
Net unrealized appreciation . . . . . . . . . . 22,107,970 2,550,118 264,463 --
--------------- -------------- ------------- -------------
Total investments at value . . . . . . . . . . . 139,018,870 140,325,035 12,928,733 239,814,768
Cash . . . . . . . . . . . . . . . . . . . . . . 22 -- 74,821 699,669
Receivables:
Dividends and interest . . . . . . . . . . . . . 896,525 1,894,518 211,049 1,230,708
Fund shares sold . . . . . . . . . . . . . . . . 197,494 207,651 -- --
Investments sold . . . . . . . . . . . . . . . . -- 24,639 -- --
Due from Advisor, net. . . . . . . . . . . . . . -- -- 7,407 --
Deferred organization costs . . . . . . . . . . . 5,017 3,096 3,096 3,096
Prepaid Expenses . . . . . . . . . . . . . . . . . 1,942 2,322 258 4,524
--------------- -------------- ------------- -------------
Total assets. . . . . . . . . . . . . . . . 140,119,870 142,457,261 13,225,364 241,752,765
--------------- -------------- ------------- -------------
LIABILITIES:
Payables:
Bank overdraft . . . . . . . . . . . . . . . . . -- 136,871 -- --
Dividend distribution. . . . . . . . . . . . . . -- -- -- 1,061,688
Investments purchased. . . . . . . . . . . . . . 244,654 265,953 300,426 --
Fund shares redeemed . . . . . . . . . . . . . . 45,942 85,619 -- --
Due to Advisor, net. . . . . . . . . . . . . . . 85,847 42,830 -- 75,187
Distribution fee . . . . . . . . . . . . . . . . 4,582 174,777 50,569 --
Trustee fees . . . . . . . . . . . . . . . . . . 625 625 625 625
Accrued expenses . . . . . . . . . . . . . . . . . 67,714 23,721 6,747 23,332
--------------- -------------- ------------- -------------
Total liabilities . . . . . . . . . . . . . 449,364 730,396 358,367 1,160,832
--------------- -------------- ------------- -------------
NET ASSETS. . . . . . . . . . . . . . . . . . . . . . $ 139,670,506 $ 141,726,865 $ 12,866,997 $ 240,591,933
--------------- -------------- ------------- -------------
--------------- -------------- ------------- -------------
NET ASSETS CONSIST OF:
Capital paid-in . . . . . . . . . . . . . . . . . $ 114,473,183 $ 138,405,787 $ 12,660,144 $ 240,591,933
Accumulated undistributed (distribution
in excess of) net investment income (loss) . . . 303,205 339,161 22,620 --
Accumulated net realized gain (loss)
on investments . . . . . . . . . . . . . . . . . 2,786,148 431,799 (80,230) --
Net unrealized appreciation
on investments . . . . . . . . . . . . . . . . . 22,107,970 2,550,118 264,463 --
--------------- -------------- ------------- -------------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . $ 139,670,506 $ 141,726,865 $ 12,866,997 $ 240,591,933
--------------- -------------- ------------- -------------
--------------- -------------- ------------- -------------
SHARES OF BENEFICIAL INTEREST OUTSTANDING . . . . . . 7,949,551 13,980,932 1,267,571 240,591,933
NET ASSET VALUE
Offering and redemption price per share
(Net Assets/Shares Outstanding). . . . . . . . . . $ 17.57 $ 10.14 $ 10.15 $ 1.00
--------------- -------------- ------------- -------------
--------------- -------------- ------------- -------------
</TABLE>
(A) Montag & Caldwell Growth Fund Class N (Retail):
Net Asset Value, offering price and redemption price per share (Based on
net assets of $843,597,433 and 31,081,246 shares issued and outstanding)
$27.14
Montag & Caldwell Growth Fund Class I (Institutional):
Net Asset Value, offering price and redemption price per share (Based on
net assets of $518,671,041 and 19,022,636 shares issued and outstanding)
$27.27
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
ALLEGHANY FUNDS
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHICAGO TRUST
MONTAG & CALDWELL GROWTH & INCOME CHICAGO TRUST CHICAGO TRUST
GROWTH FUND FUND TALON FUND BALANCED FUND
----------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends. . . . . . . . . . . . . . . . . . . . . $ 3,513,382 $ 1,173,389 $ 83,632 $ 506,334
Interest . . . . . . . . . . . . . . . . . . . . . 1,192,970 401,461 214,679 2,955,841
------------- ------------- ------------- -------------
Total investment income. . . . . . . . . . . . . . 4,706,352 1,574,850 298,311 3,462,175
------------- ------------- ------------- -------------
EXPENSES:
Investment advisory fees . . . . . . . . . . . . . 3,942,606 1,072,479 121,090 696,670
Distribution expenses. . . . . . . . . . . . . . . 800,433 383,028 37,841 248,811
Transfer agent fees. . . . . . . . . . . . . . . . 145,474 39,616 17,655 10,779
Administration fees. . . . . . . . . . . . . . . . 301,029 90,125 8,914 58,592
Accounting fees. . . . . . . . . . . . . . . . . . 715 1,046 987 5,763
Registration expenses. . . . . . . . . . . . . . . 165,297 23,550 11,328 13,937
Custodian fees . . . . . . . . . . . . . . . . . . 12,677 9,987 6,666 11,567
Professional fees. . . . . . . . . . . . . . . . . 29,776 14,547 8,174 12,416
Amortization of organization costs . . . . . . . . 1,653 2,478 1,653 695
Report to shareholder expense. . . . . . . . . . . 27,090 7,758 716 4,961
Trustees fees. . . . . . . . . . . . . . . . . . . 1,797 1,797 1,797 1,797
Other expenses . . . . . . . . . . . . . . . . . . 131,707 36,826 2,785 28,252
------------- ------------- ------------- -------------
Total expenses . . . . . . . . . . . . . . . . . 5,560,254 1,683,237 219,606 1,094,240
------------- ------------- ------------- -------------
Expenses reimbursed. . . . . . . . . . . . . . . -- -- (22,595) --
------------- ------------- ------------- -------------
Net expenses . . . . . . . . . . . . . . . . . . 5,560,254 1,683,237 197,011 1,094,240
------------- ------------- ------------- -------------
NET INVESTMENT INCOME (LOSS). . . . . . . . . . . . . (853,902) (108,387) 101,300 2,367,935
------------- ------------- ------------- -------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS :
Net realized gain on investments (including
a net realized loss on option transactions of
($96,126) in the Talon Fund) . . . . . . . . . . . 27,275,289 23,724,702 883,465 9,909,956
Net change in unrealized appreciation
(depreciation) on investments . . . . . . . . . 176,925,518 39,375,707 154,821 15,766,549
------------- ------------- ------------- -------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . 204,200,807 63,100,409 1,038,286 25,676,505
------------- ------------- ------------- -------------
NET INCREASE IN NET
ASSETS FROM OPERATIONS . . . . . . . . . . . . . . $ 203,346,905 $ 62,992,022 $ 1,139,586 $ 28,044,440
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
<TABLE>
<CAPTION>
CHICAGO TRUST CHICAGO TRUST
MONTAG & CALDWELL CHICAGO TRUST MUNICIPAL BOND MONEY MARKET
BALANCED FUND BOND FUND FUND FUND
----------------- ------------- -------------- ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends. . . . . . . . . . . . . . . . . . . . . $ 229,397 $ -- $ -- $ --
Interest . . . . . . . . . . . . . . . . . . . . . 1,412,613 4,527,566 297,615 7,116,190
------------- ------------- ------------- -------------
Total investment income. . . . . . . . . . . . . . 1,642,010 4,527,566 297,615 7,116,190
------------- ------------- ------------- -------------
EXPENSES:
Investment advisory fees . . . . . . . . . . . . . 415,654 366,318 37,735 501,524
Distribution Expenses. . . . . . . . . . . . . . . 138,551 166,508 12,746 --
Transfer agent fees. . . . . . . . . . . . . . . . 14,816 11,907 10,052 16,193
Administration fees. . . . . . . . . . . . . . . . 32,549 39,223 3,705 73,872
Accounting fees. . . . . . . . . . . . . . . . . . 3,145 4,854 1,578 3,671
Registration expenses. . . . . . . . . . . . . . . 24,617 18,295 7,647 13,317
Custodian fees . . . . . . . . . . . . . . . . . . 9,850 10,925 5,386 10,714
Professional fees. . . . . . . . . . . . . . . . . 10,281 10,840 8,218 14,128
Amortization of organization costs . . . . . . . . 1,653 2,478 2,478 2,478
Report to shareholder expense. . . . . . . . . . . 2,880 3,304 308 6,625
Trustees fees. . . . . . . . . . . . . . . . . . . 1,797 1,797 1,797 1,797
Other expenses . . . . . . . . . . . . . . . . . . 33,922 12,540 517 16,335
------------- ------------- ------------- -------------
Total Expenses . . . . . . . . . . . . . . . . . 689,715 648,989 92,167 660,654
------------- ------------- ------------- -------------
Expenses reimbursed. . . . . . . . . . . . . . . -- (116,618) (52,819) (24,451)
------------- ------------- ------------- -------------
Net expenses . . . . . . . . . . . . . . . . . . 689,715 532,371 39,348 636,203
------------- ------------- ------------- -------------
NET INVESTMENT INCOME (LOSS). . . . . . . . . . . . . 952,295 3,995,195 258,267 6,479,987
------------- ------------- ------------- -------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS :
Net realized gain on investments (including
a net realized loss on option transactions of
($96,126) in the Talon Fund) . . . . . . . . . . . 2,819,314 457,088 10,880 --
Net change in unrealized appreciation
(depreciation) on investments. . . . . . . . . . 10,563,907 (282,110) (55,026) --
------------- ------------- ------------- -------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENT. . . . . . . . . . . . . 13,383,221 174,978 (44,146) --
------------- ------------- ------------- -------------
NET INCREASE IN NET
ASSETS FROM OPERATIONS . . . . . . . . . . . . . . $14,335,516 $4,170,173 $214,121 $6,479,987
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
25
<PAGE>
ALLEGHANY FUNDS
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONTAG & CALDWELL GROWTH FUND CHICAGO TRUST GROWTH & INCOME FUND
-------------------------------- ----------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1998 OCTOBER 31, APRIL 30, 1998 OCTOBER 31,
(UNAUDITED) 1997 (UNAUDITED) 1997
---------------- --------------- -------------- --------------
<S> <C> <C> <C> <C>
NET ASSETS AT BEGINNING OF PERIOD . . . . . . . . . . $ 748,418,166 $ 218,649,895 $ 274,607,907 $ 205,133,317
-------------- -------------- -------------- --------------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) . . . . . . . . . . . (853,902) (1,327,085) (108,387) 1,018,470
Net realized gain on investments sold
and purchased options transactions . . . . . . . 27,275,289 8,570,687 23,724,702 19,177,699
Net change in unrealized appreciation
on investments and assets
and liabilities in purchased options . . . . . . 176,925,518 114,427,550 39,375,707 33,416,450
-------------- -------------- -------------- --------------
Net increase in net assets
from operations. . . . . . . . . . . . . . . . . 203,346,905 121,671,152 62,992,022 53,612,619
-------------- -------------- -------------- --------------
DISTRIBUTIONS TO SHAREOWNERS FROM:
Net investment income:
Retail Class . . . . . . . . . . . . . . . . . . -- -- (189,067) (1,152,026)
Institutional Class. . . . . . . . . . . . . . . -- (26,630) -- --
Net realized gain on investments:
Retail Class . . . . . . . . . . . . . . . . . . (4,750,066) (1,466,613) (19,149,159) (4,334,020)
Institutional Class. . . . . . . . . . . . . . . (2,772,360) (412,803) -- --
-------------- -------------- -------------- --------------
Total distributions. . . . . . . . . . . . . . . (7,522,426) (1,906,046) (19,338,226) (5,486,046)
-------------- -------------- -------------- --------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares:
Retail Class . . . . . . . . . . . . . . . . . . 325,972,580 339,687,434 39,621,122 50,803,893
Institutional Class. . . . . . . . . . . . . . . 219,014,110 228,296,239 -- --
Issued to shareowners in reinvestment of distributions:
Retail Class . . . . . . . . . . . . . . . . . . 4,458,131 1,404,998 19,000,002 5,404,887
Institutional Class. . . . . . . . . . . . . . . 2,260,596 396,515 -- --
Cost of shares repurchased:
Retail Class . . . . . . . . . . . . . . . . . . (88,096,944) (115,055,486) (22,550,182) (34,860,763)
Institutional Class. . . . . . . . . . . . . . . (45,582,644) (44,726,535) -- --
-------------- -------------- -------------- --------------
Net increase from capital
share transactions. . . . . . . . . . . . . 418,025,829 410,003,165 36,070,942 21,348,017
-------------- -------------- -------------- --------------
Total increase in net assets. . . . . . . . . 613,850,308 529,768,271 79,724,738 69,474,590
-------------- -------------- -------------- --------------
NET ASSETS AT END OF PERIOD (INCLUDING LINE A). . . . $1,362,268,474 $ 748,418,166 $ 354,332,645 $ 274,607,907
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
(A) Undistributed (distribution in excess of)
net investment income (loss). . . . . . . . . . . $ (853,902) $ -- $ (297,454) $ --
-------------- -------------- -------------- --------------
OTHER INFORMATION:
SHARE TRANSACTIONS:
Retail Class:
Sold. . . . . . . . . . . . . . . . . . . . . . . 13,291,394 16,692,907 1,874,516 2,806,114
Issued to shareholders in reinvestment
of distributions. . . . . . . . . . . . . . . . 197,788 79,785 1,006,991 326,567
Repurchased . . . . . . . . . . . . . . . . . . . (3,550,047) (5,364,133) (1,097,224) (1,902,988)
Institutional Class:
Sold. . . . . . . . . . . . . . . . . . . . . . . 8,962,760 10,833,116 -- --
Issued to shareholders in reinvestment
of distributions. . . . . . . . . . . . . . . . 99,938 22,316 -- --
Repurchased . . . . . . . . . . . . . . . . . . . . (1,857,023) (2,106,489) -- --
-------------- -------------- -------------- --------------
Net increase in shares outstanding. . . . . . . . 17,144,810 20,157,502 1,784,283 1,229,693
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
26
<PAGE>
<TABLE>
<CAPTION>
CHICAGO TRUST TALON FUND CHICAGO TRUST BALANCED FUND
-------------------------------- ----------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1998 OCTOBER 31, APRIL 30, 1998 OCTOBER 31,
(UNAUDITED) 1997 (UNAUDITED) 1997
---------------- --------------- -------------- --------------
<S> <C> <C> <C> <C>
NET ASSETS AT BEGINNING OF PERIOD. . . . . . . . . . . $ 28,459,583 $ 17,417,675 $ 187,993,337 $ 156,703,443
-------------- -------------- -------------- --------------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss). . . . . . . . . . . . 101,300 162,715 2,367,935 4,843,563
Net realized gain on investments sold
and purchased options transactions. . . . . . . . 883,465 4,497,850 9,909,956 11,378,927
Net change in unrealized appreciation
on investments and assets
and liabilities in purchased options. . . . . . . 154,821 1,618,377 15,766,549 15,462,457
-------------- -------------- -------------- --------------
Net increase in net assets
from operations . . . . . . . . . . . . . . . . . 1,139,586 6,278,942 28,044,440 31,684,947
-------------- -------------- -------------- --------------
DISTRIBUTIONS TO SHAREOWNERS FROM:
Net investment income:
Retail Class. . . . . . . . . . . . . . . . . . . (105,163) (134,407) (2,451,582) (4,764,936)
Institutional Class . . . . . . . . . . . . . . . -- -- -- --
Net realized gain on investments:
Retail Class. . . . . . . . . . . . . . . . . . . (4,653,085) (1,458,660) (11,401,639) (2,253,139)
Institutional Class . . . . . . . . . . . . . . . -- -- -- --
-------------- -------------- -------------- --------------
Total distributions . . . . . . . . . . . . . . . (4,758,248) (1,593,067) (13,853,221) (7,018,075)
-------------- -------------- -------------- --------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares:
Retail Class. . . . . . . . . . . . . . . . . . . 6,136,793 6,345,104 17,356,662 28,395,564
Institutional Class . . . . . . . . . . . . . . . -- -- -- --
Issued to shareowners in reinvestment of distributions:
Retail Class. . . . . . . . . . . . . . . . . . . 4,701,233 1,577,255 13,847,940 7,017,789
Institutional Class . . . . . . . . . . . . . . . -- -- -- --
Cost of shares repurchased:
Retail Class. . . . . . . . . . . . . . . . . . . (5,055,898) (1,566,326) (18,356,257) (28,790,331)
Institutional Class . . . . . . . . . . . . . . . -- -- -- --
-------------- -------------- -------------- --------------
Net increase from capital
share transactions . . . . . . . . . . . . . 5,782,128 6,356,033 12,848,345 6,623,022
-------------- -------------- -------------- --------------
Total increase in net assets . . . . . . . . . 2,163,466 11,041,908 27,039,564 31,289,894
-------------- -------------- -------------- --------------
NET ASSETS AT END OF PERIOD (INCLUDING LINE A) . . . . $ 30,623,049 $ 28,459,583 $ 215,032,901 $ 187,993,337
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
(A) Undistributed (distribution in excess of)
net investment income (loss) . . . . . . . . . . . $ 33,390 $ 37,253 $ 540,989 $ 624,636
-------------- -------------- -------------- --------------
OTHER INFORMATION:
SHARE TRANSACTIONS:
Retail Class:
Sold. . . . . . . . . . . . . . . . . . . . . . . 396,506 397,032 1,559,397 2,757,711
Issued to shareholders in reinvestment
of distributions. . . . . . . . . . . . . . . . 314,892 107,919 1,304,119 699,716
Repurchased . . . . . . . . . . . . . . . . . . . (323,359) (97,875) (1,647,635) (2,774,505)
Institutional Class:
Sold. . . . . . . . . . . . . . . . . . . . . . . -- -- -- --
Issued to shareholders in reinvestment
of distributions. . . . . . . . . . . . . . . . -- -- -- --
Repurchased . . . . . . . . . . . . . . . . . . . -- -- -- --
-------------- -------------- -------------- --------------
Net increase in shares outstanding. . . . . . . 388,039 407,076 1,215,881 682,922
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
27
<PAGE>
ALLEGHANY FUNDS
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONTAG & CALDWELL BALANCED FUND CHICAGO TRUST BOND FUND
--------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1998 OCTOBER 31, APRIL 30, 1998 OCTOBER 31,
(UNAUDITED) 1997 (UNAUDITED) 1997
---------------- --------------- ---------------- --------------
<S> <C> <C> <C> <C>
NET ASSETS AT BEGINNING OF PERIOD. . . . . . . . . . . $ 82,719,053 $ 31,472,671 $ 120,532,177 $ 79,210,728
-------------- -------------- -------------- --------------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income . . . . . . . . . . . . . . . 952,295 952,704 3,995,195 6,243,541
Net realized gain (loss) on investments sold . . . 2,819,314 2,102,297 457,088 (36,729)
Net change in unrealized appreciation
(depreciation) of investments . . . . . . . . . . 10,563,907 7,581,239 (282,110) 2,754,254
-------------- -------------- -------------- --------------
Net increase in net assets
from operations . . . . . . . . . . . . . . . . . 14,335,516 10,636,240 4,170,173 8,961,066
-------------- -------------- -------------- --------------
DISTRIBUTIONS TO SHAREOWNERS FROM:
Net investment income . . . . . . . . . . . . . . . (834,653) (837,377) (4,108,631) (6,043,358)
Net realized gain on investments. . . . . . . . . . (2,095,351) (2,702,590) -- (16,748)
-------------- -------------- -------------- --------------
Total distributions . . . . . . . . . . . . . . . (2,930,004) (3,539,967) (4,108,631) (6,060,106)
-------------- -------------- -------------- --------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares . . . . . . . . . 55,627,337 58,631,470 29,613,557 46,817,358
Issued to shareowners in
reinvestment of distributions . . . . . . . . . . 2,828,759 3,490,623 3,185,970 4,797,389
Cost of shares repurchased. . . . . . . . . . . . . (12,910,155) (17,971,984) (11,666,381) (13,194,258)
-------------- -------------- -------------- --------------
Net increase from
capital share transactions. . . . . . . . . . . 45,545,941 44,150,109 21,133,146 38,420,489
-------------- -------------- -------------- --------------
Total increase in net assets. . . . . . . . . . . 56,951,453 51,246,382 21,194,688 41,321,449
-------------- -------------- -------------- --------------
NET ASSETS AT END OF PERIOD (INCLUDING LINE A) . . . . $ 139,670,506 $ 82,719,053 $ 141,726,865 $ 120,532,177
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
(A) Undistributed net investment income. . . . . . . . $ 303,205 $ 185,563 $ 339,161 $ 452,597
-------------- -------------- -------------- --------------
OTHER INFORMATION:
SHARE TRANSACTIONS:
Sold. . . . . . . . . . . . . . . . . . . . . . . . 3,371,266 3,939,135 2,944,089 4,734,805
Issued to shareholders in reinvestment
of distributions. . . . . . . . . . . . . . . . . 178,894 255,726 290,206 485,679
Repurchased . . . . . . . . . . . . . . . . . . . . (768,407) (1,229,194) (1,147,665) (1,334,065)
-------------- -------------- -------------- --------------
Net increase in shares outstanding. . . . . . . . 2,781,753 2,965,667 2,086,630 3,886,419
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28
<PAGE>
<TABLE>
<CAPTION>
CHICAGO TRUST MUNICIPAL BOND FUND CHICAGO TRUST MONEY MARKET FUND
--------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1998 OCTOBER 31, APRIL 30, 1998 OCTOBER 31,
(UNAUDITED) 1997 (UNAUDITED) 1997
---------------- --------------- ---------------- --------------
<S> <C> <C> <C> <C>
NET ASSETS AT BEGINNING OF PERIOD. . . . . . . . . . . $ 12,379,208 $ 11,186,162 $ 238,551,474 $ 226,535,616
-------------- -------------- -------------- --------------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income . . . . . . . . . . . . . . . 258,267 430,579 6,479,987 12,701,010
Net realized gain (loss) on investments sold . . . 10,880 6,147 -- --
Net change in unrealized appreciation
(depreciation) of investments . . . . . . . . . . (55,026) 140,720 -- --
-------------- -------------- -------------- --------------
Net increase in net assets
from operations . . . . . . . . . . . . . . . . . 214,121 577,446 6,479,987 12,701,010
-------------- -------------- -------------- --------------
DISTRIBUTIONS TO SHAREOWNERS FROM:
Net investment income . . . . . . . . . . . . . . . (263,103) (426,993) (6,479,987) (12,701,010)
Net realized gain on investments. . . . . . . . . . -- -- -- --
-------------- -------------- -------------- --------------
Total distributions . . . . . . . . . . . . . . . (263,103) (426,993) (6,479,987) (12,701,010)
-------------- -------------- -------------- --------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares . . . . . . . . . 866,702 1,375,126 284,113,157 569,551,234
Issued to shareowners in
reinvestment of distributions . . . . . . . . . . 17,396 21,748 165,513 434,377
Cost of shares repurchased. . . . . . . . . . . . . (347,327) (354,281) (282,238,211) (557,969,753)
-------------- -------------- -------------- --------------
Net increase from
capital share transactions. . . . . . . . . . . 536,771 1,042,593 2,040,459 12,015,858
-------------- -------------- -------------- --------------
Total increase in net assets. . . . . . . . . . . 487,789 1,193,046 2,040,459 12,015,858
-------------- -------------- -------------- --------------
NET ASSETS AT END OF PERIOD (INCLUDING LINE A) . . . . $ 12,866,997 $ 12,379,208 $ 240,591,933 $ 238,551,474
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
(A) Undistributed net investment income. . . . . . . . $ 22,620 $ 27,456 $ -- $ --
-------------- -------------- -------------- --------------
OTHER INFORMATION:
SHARE TRANSACTIONS:
Sold. . . . . . . . . . . . . . . . . . . . . . . . 84,563 135,835 284,113,157 569,551,234
Issued to shareholders in reinvestment
of distributions. . . . . . . . . . . . . . . . . 1,702 2,159 165,513 434,377
Repurchased . . . . . . . . . . . . . . . . . . . . (34,028) (35,025) (282,238,211) (557,969,753)
-------------- -------------- -------------- --------------
Net increase in shares outstanding. . . . . . . . 52,237 102,969 2,040,459 12,015,858
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
</TABLE>
29
<PAGE>
ALLEGHANY FUNDS
FINANCIAL HIGHLIGHTS APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONTAG & CALDWELL GROWTH FUND
-----------------------------------------------------------------
RETAIL CLASS
-----------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR PERIOD
04/30/98 ENDED ENDED ENDED
(UNAUDITED) 10/31/97 10/31/96 10/31/95(a)
----------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period . . . . . . . . . . $ 22.68 $ 17.08 $ 13.16 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss). . . . . . . . . . . . (0.03) (0.05) -- 0.02
Net realized and unrealized gain
on investments . . . . . . . . . . . . . . . . . 4.70 5.79 3.93 3.16
---------- ---------- ---------- ----------
Total from investment operations. . . . . . . . . 4.67 5.74 3.93 3.18
---------- ---------- ---------- ----------
LESS DISTRIBUTIONS:
Distributions from and in excess
of net investment income. . . . . . . . . . . . . -- -- (0.01) (0.02)
Distributions from net realized
gain on investments . . . . . . . . . . . . . . . (0.21) (0.14) -- --
---------- ---------- ---------- ----------
Total distributions . . . . . . . . . . . . . . . (0.21) (0.14) (0.01) (0.02)
---------- ---------- ---------- ----------
Net increase in net asset value. . . . . . . . . . . . . 4.46 5.60 3.92 3.16
---------- ---------- ---------- ----------
Net Asset Value, End of Period . . . . . . . . . . . . . $ 27.14 $ 22.68 $ 17.08 $ 13.16
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
TOTAL RETURN(1). . . . . . . . . . . . . . . . . . . . . 20.79% 33.82% 29.91% 31.87%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) . . . . . . . . . . $ 843,597 $ 479,557 $ 166,243 $ 40,355
Ratios of expenses to average net assets:
Before reimbursement of expenses
by Advisor(2) . . . . . . . . . . . . . . . . . . . 1.20% 1.24% 1.32% 1.87%
After reimbursement of expenses
by Advisor(2) . . . . . . . . . . . . . . . . . . . 1.20% 1.23% 1.28% 1.30%
Ratios of net investment income to average net assets:
Before reimbursement of expenses
by Advisor(2) . . . . . . . . . . . . . . . . . . . (0.28)% (0.38)% (0.10)% (0.36)%
After reimbursement of expenses
by Advisor(2) . . . . . . . . . . . . . . . . . . . (0.28)% (0.37)% (0.06)% 0.20%
Portfolio Turnover(1). . . . . . . . . . . . . . . . . . 25.65% 18.65% 26.36% 34.46%
Average Commission Rate Paid . . . . . . . . . . . . . . $ 0.0558 $ 0.0592 $ 0.0639 N/R
</TABLE>
- --------------------------------------------------------
(1) Not annualized.
(2) Annualized.
(a) Montag & Caldwell Growth Fund Retail Class commenced investment
operations on November 2, 1994.
N/R: Not required.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30
<PAGE>
ALLEGHANY FUNDS
FINANCIAL HIGHLIGHTS APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONTAG & CALDWELL GROWTH FUND
-----------------------------------------------
INSTITUTIONAL CLASS
-----------------------------------------------
SIX MONTHS
ENDED YEAR PERIOD
04/30/98 ENDED ENDED
(UNAUDITED) 10/31/97 10/31/96(a)
----------- ---------- -----------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period . . . . . . . . . . $ 22.75 $ 17.08 $ 15.59
INCOME FROM INVESTMENT OPERATIONS:
Net investment income . . . . . . . . . . . . . . . . -- -- 0.02
Net realized and unrealized gain
on investments. . . . . . . . . . . . . . . . . . . 4.73 5.81 1.49
---------- ---------- ----------
Total from investment operations. . . . . . . . . . 4.73 5.81 1.51
---------- ---------- ----------
LESS DISTRIBUTIONS:
Distributions from and in excess
of net investment income. . . . . . . . . . . . . . -- -- (0.02)
Distributions from net realized
gain on investments . . . . . . . . . . . . . . . . (0.21) (0.14) --
---------- ---------- ----------
Total distributions . . . . . . . . . . . . . . . . (0.21) (0.14) (0.02)
---------- ---------- ----------
Net increase in net asset value. . . . . . . . . . . . . 4.52 5.67 1.49
---------- ---------- ----------
Net Asset Value, End of Period . . . . . . . . . . . . . $ 27.27 $ 22.75 $ 17.08
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN(1). . . . . . . . . . . . . . . . . . . . . 20.99% 34.26% 9.67%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) . . . . . . . . . . $ 518,671 $ 268,861 $ 52,407
Ratios of expenses to average net assets:
Before reimbursement of expenses
by Advisor(2) . . . . . . . . . . . . . . . . . . . . 0.90% 0.93% 0.98%
After reimbursement of expenses
by Advisor(2) . . . . . . . . . . . . . . . . . . . . 0.90% 0.93% 0.98%
Ratios of net investment income to average net assets:
Before reimbursement of expenses
by Advisor(2) . . . . . . . . . . . . . . . . . . . . 0.02% (0.07)% 0.17%
After reimbursement of expenses
by Advisor(2) . . . . . . . . . . . . . . . . . . . . 0.02% (0.06)% 0.17%
Portfolio Turnover(1). . . . . . . . . . . . . . . . . . 25.65% 18.65% 26.36%
Average Commission Rate Paid . . . . . . . . . . . . . . $ 0.0558 $ 0.0592 $ 0.0639
</TABLE>
- --------------
(1) Not annualized.
(2) Annualized.
(a) Montag & Caldwell Growth Fund Institutional Class commenced investment
operations on June 28, 1996.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
31
<PAGE>
ALLEGHANY FUNDS
FINANCIAL HIGHLIGHTS APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHICAGO TRUST GROWTH & INCOME FUND
-----------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR PERIOD
04/30/98 ENDED ENDED ENDED ENDED
(UNAUDITED) 10/31/97 10/31/96 10/31/95 10/31/94(a)
----------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period . . . . . . . . . $ 19.73 $ 16.17 $ 12.90 $ 10.11 $ 10.00
--------- -------- -------- -------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss). . . . . . . . . . . (0.01) 0.08 0.11 0.09 0.07
Net realized and unrealized gain on investments . 4.23 3.91 3.34 2.79 0.10
--------- -------- -------- -------- ---------
Total from investment operations . . . . . . . 4.22 3.99 3.45 2.88 0.17
--------- -------- -------- -------- ---------
LESS DISTRIBUTIONS:
Distributions from and in excess of net
investment income . . . . . . . . . . . . . . . (0.01) (0.09) (0.11) (0.09) (0.06)
Distributions from net realized gain on investments (1.37) (0.34) (0.07) -- --
--------- -------- -------- -------- ---------
Total distributions. . . . . . . . . . . . . . (1.38) (0.43) (0.18) (0.09) (0.06)
--------- -------- -------- -------- ---------
Net increase in net asset value . . . . . . . . . . . 2.84 3.56 3.27 2.79 0.11
--------- -------- -------- -------- ---------
Net Asset Value, End of Period . . . . . . . . . . . . $ 22.57 $ 19.73 $ 16.17 $ 12.90 $ 10.11
--------- -------- -------- -------- ---------
--------- -------- -------- -------- ---------
TOTAL RETURN(1). . . . . . . . . . . . . . . . . . . . 22.76% 25.16% 26.98% 28.66% 1.73%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) . . . . . . . . . $ 354,333 $274,608 $205,133 $172,296 $ 12,282
Ratios of expenses to average net assets:
Before reimbursement of expenses by Advisor(2). . . 1.10% 1.12% 1.15% 1.50% 2.21%
After reimbursement of expenses by Advisor(2) . . . 1.10% 1.07%(3) 1.00% 1.09%(4) 1.20%
Ratios of net investment income to average net assets:
Before reimbursement of expenses by Advisor(2). . . (0.07)% 0.36% 0.62% 0.33% (0.15)%
After reimbursement of expenses by Advisor(2) . . . (0.07)% 0.41% 0.77% 0.74% 0.86%
Portfolio Turnover(1). . . . . . . . . . . . . . . . . 24.09% 30.58% 25.48% 9.00% 37.01%
Average Commission Rate Paid . . . . . . . . . . . . . $ 0.0525 $ 0.0530 $ 0.0571 N/R N/R
</TABLE>
- -----------------------------------------------------
(1) Not annualized.
(2) Annualized.
(3) The Advisor's expense reimbursement level, which affects the net
expense ratio, changed from 1.00% to 1.10% on February 28, 1997.
(4) The Advisor's expense reimbursement level, which affects the net
expense ratio, changed from 1.20% to 1.00% on September 21, 1995.
(a) Chicago Trust Growth & Income Fund commenced investment operations on
December 13, 1993.
N/R: Not required.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32
<PAGE>
ALLEGHANY FUNDS
FINANCIAL HIGHLIGHTS APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHICAGO TRUST TALON FUND
-----------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR PERIOD
04/30/98 ENDED ENDED ENDED ENDED
(UNAUDITED) 10/31/97 10/31/96 10/31/95 10/31/94(a)
----------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period . . . . . . . . . $ 17.60 $ 14.39 $ 12.07 $ 10.25 $ 10.00
--------- -------- -------- -------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income . . . . . . . . . . . . . . 0.05 0.11 0.04 0.09 0.02
Net realized and unrealized gain on investments
and options . . . . . . . . . . . . . . . . . . . 0.51 4.38 3.01 1.84 0.23
--------- -------- -------- -------- ---------
Total from investment operations . . . . . . 0.56 4.49 3.05 1.93 0.25
--------- -------- -------- -------- ---------
LESS DISTRIBUTIONS:
Distributions from and in excess of net
investment income . . . . . . . . . . . . . . . (0.06) (0.09) (0.03) (0.11) --
Distributions from net realized gain on investments (2.83) (1.19) (0.70) -- --
--------- -------- -------- -------- ---------
Total distributions . . . . . . . . . . . . (2.89) (1.28) (0.73) (0.11) --
--------- -------- -------- -------- ---------
Net increase (decrease) in net asset value . . . . . . (2.33) 3.21 2.32 1.82 0.25
--------- -------- -------- -------- ---------
Net Asset Value, End of Period . . . . . . . . . . . . $ 15.27 $ 17.60 $ 14.39 $ 12.07 $ 10.25
--------- -------- -------- -------- ---------
--------- -------- -------- -------- ---------
TOTAL RETURN(1). . . . . . . . . . . . . . . . . . . . 3.58% 33.47% 26.51% 18.92% 2.50%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) . . . . . . . . . $ 30,623 $ 28,460 $ 17,418 $ 10,538 $ 4,355
Ratios of expenses to average net assets:
Before reimbursement of expenses by Advisor(2). . . 1.45% 1.67% 1.98% 3.04% 7.82%
After reimbursement of expenses by Advisor(2) . . . 1.30% 1.30% 1.30% 1.30% 1.30%
Ratios of net investment income to average net assets:
Before reimbursement of expenses by Advisor(2). . . 0.52% 0.34% (0.38)% (0.97)% (4.13)%
After reimbursement of expenses by Advisor(2) . . . 0.67% 0.71% 0.30% 0.77% 2.39%
Portfolio Turnover(1) . . . . . . . . . . . . . . . . 28.36% 112.72% 126.83% 229.43% 33.66%
Average Commission Rate Paid . . . . . . . . . . . . . $ 0.0599 $ 0.0591 $ 0.0612 N/R N/R
</TABLE>
- -----------------------------------------------------
(1) Not annualized.
(2) Annualized.
(a) Chicago Trust Talon Fund commenced investment operations on
September 19, 1994.
N/R: Not required.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
33
<PAGE>
ALLEGHANY FUNDS
FINANCIAL HIGHLIGHTS APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHICAGO TRUST BALANCED FUND
--------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR PERIOD
04/30/98 ENDED ENDED ENDED
(UNAUDITED) 10/31/97 10/31/96 10/31/95(a)
--------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period . . . . . . . . . $ 11.06 $ 9.60 $ 8.43 $ 8.34
--------- -------- -------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income . . . . . . . . . . . . . . . 0.13 0.28 0.27 0.03
Net realized and unrealized gain on
investments . . . . . . . . . . . . . . . . . . . 1.43 1.60 1.16 0.06
--------- -------- -------- ---------
Total from investment operations . . . . . . . 1.56 1.88 1.43 0.09
--------- -------- -------- ---------
LESS DISTRIBUTIONS:
Distributions from and in excess of net
investment income . . . . . . . . . . . . . . . (0.14) (0.28) (0.26) --
Distributions from net realized gain on
investments . . . . . . . . . . . . . . . . . . (0.68) (0.14) -- --
--------- -------- -------- ---------
Total distributions . . . . . . . . . . . . . (0.82) (0.42) (0.26) --
--------- -------- -------- ---------
Net increase in net asset value . . . . . . . . . . . 0.74 1.46 1.17 0.09
--------- -------- -------- ---------
Net Asset Value, End of Period . . . . . . . . . . . . $ 11.80 $ 11.06 $ 9.60 $ 8.43
--------- -------- -------- ---------
--------- -------- -------- ---------
TOTAL RETURN(1). . . . . . . . . . . . . . . . . . . . 14.99% 20.10% 17.21% 1.08%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) . . . . . . . . . $ 215,033 $187,993 $156,703 $ 152,820
Ratios of expenses to average net assets:
Before reimbursement of expenses by Advisor(2). . . 1.10% 1.13% 1.17% 1.19%
After reimbursement of expenses by Advisor(2) . . . 1.10% 1.07%(3) 1.00% 1.00%
Ratios of net investment income to average net assets:
Before reimbursement of expenses by Advisor(2). . . 2.38% 2.70% 2.79% 2.56%
After reimbursement of expenses by Advisor(2) . . . 2.38% 2.76% 2.96% 2.73%
Portfolio Turnover(1) . . . . . . . . . . . . . . . . 24.84% 34.69% 34.29% 0.72%
Average Commission Rate Paid . . . . . . . . . . . . . $ 0.0510 $ 0.0576 $0.0596 N/R
</TABLE>
- -----------------------------------------------------
(1) Not annualized.
(2) Annualized.
(3) The Advisor's expense reimbursement level, which affects the net
expense ratio, changed from 1.00% to 1.10% on February 28, 1997.
(a) Chicago Trust Balanced Fund (formerly the Chicago Trust Asset
Allocation Fund) commenced investment operations on September 21,
1995.
N/R: Not required.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
34
<PAGE>
ALLEGHANY FUNDS
FINANCIAL HIGHLIGHTS APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONTAG & CALDWELL BALANCED FUND
--------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR PERIOD
04/30/98 ENDED ENDED ENDED
(UNAUDITED) 10/31/97 10/31/96 10/31/95(a)
--------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period . . . . . . . . . $ 16.01 $ 14.29 $ 12.12 $ 10.00
--------- -------- -------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income . . . . . . . . . . . . . . 0.13 0.25 0.27 0.26
Net realized and unrealized gain on
investments . . . . . . . . . . . . . . . . . . 1.94 2.93 2.17 2.09
--------- -------- -------- ---------
Total from investment operations . . . . . . 2.07 3.18 2.44 2.35
--------- -------- -------- ---------
LESS DISTRIBUTIONS:
Distributions from and in excess of net
investment income . . . . . . . . . . . . . . . (0.13) (0.25) (0.27) (0.23)
Distributions from net realized gain on
investments . . . . . . . . . . . . . . . . . . (0.38) (1.21) -- --
--------- -------- -------- ---------
Total distributions . . . . . . . . . . . . (0.51) (1.46) (0.27) (0.23)
--------- -------- -------- ---------
Net increase in net asset value . . . . . . . . . . . 1.56 1.72 2.17 2.12
--------- -------- -------- ---------
Net Asset Value, End of Period . . . . . . . . . . . . $ 17.57 $ 16.01 $ 14.29 $ 12.12
--------- -------- -------- ---------
--------- -------- -------- ---------
TOTAL RETURN(1). . . . . . . . . . . . . . . . . . . . 13.34% 24.26% 20.37% 23.75%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) . . . . . . . . . $ 139,671 $ 82,719 $ 31,473 $ 21,908
Ratios of expenses to average net assets:
Before reimbursement of expenses by Advisor(2). . . 1.25% 1.33% 1.58% 2.50%
After reimbursement of expenses by Advisor(2) . . . 1.25% 1.25% 1.25% 1.25%
Ratios of net investment income
to average net assets:
Before reimbursement of expenses by Advisor(2). . . 1.72% 1.70% 1.83% 1.38%
After reimbursement of expenses by Advisor(2) . . . 1.72% 1.78% 2.16% 2.63%
Portfolio Turnover(1). . . . . . . . . . . . . . . . . 35.23% 28.13% 43.58% 27.33%
Average Commission Rate Paid . . . . . . . . . . . . . $ 0.0564 $ 0.0591 $ 0.0644 N/R
</TABLE>
- -----------------------------------------------------
(1) Not annualized.
(2) Annualized.
(a) Montag & Caldwell Balanced Fund commenced investment operations on
November 2, 1994.
N/R: Not required.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
35
<PAGE>
ALLEGHANY FUNDS
FINANCIAL HIGHLIGHTS APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHICAGO TRUST BOND FUND
------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR PERIOD
04/30/98 ENDED ENDED ENDED ENDED
(UNAUDITED) 10/31/97 10/31/96 10/31/95 10/31/94(a)
----------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period . . . . . . . . . . . . $ 10.13 $ 9.89 $ 9.94 $ 9.21 $ 10.00
-------- -------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income . . . . . . . . . . . . . . . . . 0.31 0.61 0.60 0.60 0.50
Net realized and unrealized gain (loss) on
investments . . . . . . . . . . . . . . . . . . . . . . 0.01 0.23 (0.05) 0.73 (0.82)
-------- -------- ------- ------- -------
Total from investment operations . . . . . . . . . . . 0.32 0.84 0.55 1.33 (0.32)
-------- -------- ------- ------- -------
LESS DISTRIBUTIONS FROM AND IN EXCESS
OF NET INVESTMENT INCOME . . . . . . . . . . . . . . . . (0.31) (0.60) (0.60) (0.60) (0.47)
-------- -------- ------- ------- -------
Total distributions . . . . . . . . . . . . . . . . . (0.31) (0.60) (0.60) (0.60) (0.47)
-------- -------- ------- ------- -------
Net increase (decrease) in net asset value . . . . . . . . . 0.01 0.24 (0.05) 0.73 (0.79)
-------- -------- ------- ------- -------
Net Asset Value, End of Period . . . . . . . . . . . . . . . $ 10.14 $ 10.13 $ 9.89 $ 9.94 $ 9.21
-------- -------- ------- ------- -------
TOTAL RETURN(1). . . . . . . . . . . . . . . . . . . . . . . 3.23% 8.84% 5.76% 14.89% (3.23)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) . . . . . . . . . . . . $141,727 $120,532 $79,211 $70,490 $12,546
Ratios of expenses to average net assets:
Before reimbursement of expenses by Advisor(2) . . . . . . 0.97% 1.02% 1.10% 1.54% 2.02%
After reimbursement of expenses by Advisor(2). . . . . . . 0.80% 0.80% 0.80% 0.80% 0.80%
Ratios of net investment income to average net assets:
Before reimbursement of expenses by Advisor(2) . . . . . . 5.82% 6.02% 5.89% 5.78% 4.83%
After reimbursement of expenses by Advisor(2). . . . . . . 5.99% 6.24% 6.19% 6.52% 6.05%
Portfolio Turnover(1) . . . . . . . . . . . . . . . . . . . 21.71% 17.76% 41.75% 68.24% 20.73%
</TABLE>
- ---------------
(1) Not annualized.
(2) Annualized.
(a) Chicago Trust Bond Fund commenced investment operations on December 13,
1993.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
36
<PAGE>
ALLEGHANY FUNDS
FINANCIAL HIGHLIGHTS APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHICAGO TRUST MUNICIPAL BOND FUND
------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR PERIOD
04/30/98 ENDED ENDED ENDED ENDED
(UNAUDITED) 10/31/97 10/31/96 10/31/95 10/31/94(a)
----------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period . . . . . . . . . . . . $ 10.19 $ 10.06 $ 10.08 $ 9.56 $ 10.00
------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income . . . . . . . . . . . . . . . . . 0.23 0.38 0.38 0.35 0.27
Net realized and unrealized gain (loss) on
investments . . . . . . . . . . . . . . . . . . . . . . (0.06) 0.12 (0.02) 0.52 (0.46)
------- ------- ------- ------- -------
Total from investment operations . . . . . . . . . . . 0.17 0.50 0.36 0.87 (0.19)
------- ------- ------- ------- -------
LESS DISTRIBUTIONS FROM AND IN EXCESS
OF NET INVESTMENT INCOME . . . . . . . . . . . . . . . . (0.21) (0.37) (0.38) (0.35) (0.25)
Distributions from net realized gain on investments. . . -- -- -- -- --
------- ------- ------- ------- -------
Total distributions . . . . . . . . . . . . . . . . . (0.21) (0.37) (0.38) (0.35) (0.25)
------- ------- ------- ------- -------
Net increase (decrease) in net asset value . . . . . . . . . (0.04) 0.13 (0.02) 0.52 (0.44)
------- ------- ------- ------- -------
Net Asset Value, End of Period . . . . . . . . . . . . . . . $ 10.15 $ 10.19 $ 10.06 $ 10.08 $ 9.56
------- ------- ------- ------- -------
------- ------- ------- ------- -------
TOTAL RETURN(1). . . . . . . . . . . . . . . . . . . . . . . 1.70% 5.13% 3.59% 9.29% (1.92)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) . . . . . . . . . . . . $12,867 $12,379 $11,186 $11,679 $10,462
Ratios of expenses to average net assets:
Before reimbursement of expenses by Advisor(2) . . . . . . 1.47% 1.64% 1.53% 2.16% 2.09%
After reimbursement of expenses by Advisor(2). . . . . . . 0.63%(3) 0.90% 0.90% 0.90% 0.90%
Ratios of net investment income to average net assets:
Before reimbursement of expenses by Advisor(2) . . . . . . 3.27% 3.00% 3.11% 2.37% 1.90%
After reimbursement of expenses by Advisor(2). . . . . . . 4.11% 3.74% 3.74% 3.63% 3.09%
Portfolio Turnover(1) . . . . . . . . . . . . . . . . . . . 12.00% 16.19% 27.47% 42.81% 14.85%
</TABLE>
- ---------------
(1) Not annualized.
(2) Annualized.
(3) The Advisor's expense reimbursement level, which affects the net expense
ratio, changed from 0.90% to 0.10% on February 27, 1998.
(a) Chicago Trust Municipal Bond Fund commenced investment operations on
December 13, 1993.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
37
<PAGE>
ALLEGHANY FUNDS
FINANCIAL HIGHLIGHTS APRIL 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHICAGO TRUST MONEY MARKET FUND
------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR YEAR PERIOD
04/30/98 ENDED ENDED ENDED ENDED
(UNAUDITED) 10/31/97 10/31/96 10/31/95 10/31/94(a)
----------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period . . . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income . . . . . . . . . . . . . . . . . 0.03 0.05 0.05 0.05 0.03
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME . . . . . . (0.03) (0.05) (0.05) (0.05) (0.03)
-------- -------- -------- -------- --------
Net Asset Value, End of Period . . . . . . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
TOTAL RETURN(1). . . . . . . . . . . . . . . . . . . . . . . 2.59% 5.15% 5.14% 5.56% 3.20%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in 000's) . . . . . . . . . . . . $240,671 $238,551 $226,536 $206,075 $122,929
Ratios of expenses to average net assets:
Before reimbursement of expenses by Advisor(2) . . . . . . 0.53% 0.56% 0.59% 0.63% 0.64%
After reimbursement of expenses by Advisor(2). . . . . . . 0.51%(4) 0.50% 0.50% 0.43%(3) 0.40%
Ratios of net investment income to average net assets:
Before reimbursement of expenses by Advisor(2) . . . . . . 5.15% 5.00% 4.93% 5.24% 3.49%
After reimbursement of expenses by Advisor(2). . . . . . . 5.17% 5.06% 5.02% 5.44% 3.73%
</TABLE>
- ---------------
(1) Not annualized.
(2) Annualized.
(3) The Advisor's expense reimbursement level, which affects the net expense
ratio, changed from 0.40% to 0.50% on July 12, 1995.
(4) As of February 27, 1998, the Advisor is no longer waiving fees or
reimbursing expenses.
(a) Chicago Trust Money Market Fund commenced investment operations on
December 14, 1993.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
38
<PAGE>
ALLEGHANY FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) APRIL 30, 1998
- --------------------------------------------------------------------------------
NOTE (A) SIGNIFICANT ACCOUNTING POLICIES: The AlleghanyFunds (formerly
CT&T Funds) (the "Company") operate 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 Balanced Fund
(formerly Chicago Trust Asset Allocation Fund) (the "CT Balanced Fund"), Montag
& Caldwell Balanced Fund (the "M&C 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 28, 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 invests 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 CT Balanced 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 M&C 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 is
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 primarily invests 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
seeks to achieve its objective by investing substantially all of its assets in a
diversified portfolio of municipal debt obligations. Chicago Trust is the
Investment Advisor for the Fund, which commenced investment operations on
December 13, 1993.
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.
39
<PAGE>
ALLEGHANY FUNDS
NOTES TO FINANCIAL STATEMENTS - CONTINUED (UNAUDITED) APRIL 30, 1998
- --------------------------------------------------------------------------------
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 CT Balanced Fund and the M&C 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 respective
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 CT Balanced Fund, the M&C 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, that is, 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. A Fund has a
variety of reasons to use derivative instruments, such as to attempt to
protect the Fund against possible changes in the market value of its
portfolio and to manage the portfolio's effective yield, maturity and
duration. All of a Fund's portfolio holdings, including derivative
instruments, are marked to market each day with the change in value
reflected in the unrealized appreciation/depreciation on investments.
Upon disposition, a realized gain or loss is recognized accordingly,
except for exercised option contracts where the recognition of gain or
loss is postponed until the disposal of the security underlying the
option contract.
An option contract gives the buyer the right, but not the obligation to buy
(call) or sell (put) an underlying item at a fixed exercise price during a
specified period. These contracts are used by a Fund to manage the
portfolio's effective maturity and duration.
Transactions in purchased options for the Chicago Trust Talon Fund for the
six months ended April 30, 1998 were as follows:
<TABLE>
<CAPTION>
CONTRACTS PREMIUM
--------- ---------
<S> <C> <C>
Outstanding at October 31, 1997 . . . . . . . . . . . . . . . . . . . 50 $(120,125)
Options purchased (Net) . . . . . . . . . . . . . . . . . . . . . . . -- --
Options exercised or terminated in closing transactions (Net) . . . . (50) 120,125
Options expired (Net) . . . . . . . . . . . . . . . . . . . . . . . . -- --
--------- ---------
Outstanding at April 30, 1998 . . . . . . . . . . . . . . . . . . . . -- $ --
--------- ---------
</TABLE>
(4) MORTGAGE BACKED SECURITIES: The CT Balanced Fund, the M&C 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
40
<PAGE>
ALLEGHANY FUNDS
NOTES TO FINANCIAL STATEMENTS - CONTINUED (UNAUDITED) APRIL 30, 1998
- --------------------------------------------------------------------------------
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 are also higher.
The CT Balanced Fund, the M&C 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 CT Balanced 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, 1997, the losses amounted to $91,110 for the Municipal Bond
Fund and $25,289 for the Bond Fund, which will expire October 31, 2003 and
October 31, 2005, respectively.
Net realized gains or losses may differ for financial and tax reporting
purposes for the Talon Fund, the M&C Balanced Fund and the Growth Fund
primarily as a result of losses from wash sales which are not recognized
for tax purposes until the corresponding shares are sold and as a result of
gains or losses recognized for tax purposes on the mark-to-market of open
options transactions at October 31, 1997.
(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 Funds' and 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 the 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 M&C Balanced Fund; and September 21, 1995 for the
CT Balanced 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 CT Balanced Fund and the M&C 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,
41
<PAGE>
ALLEGHANY FUNDS
NOTES TO FINANCIAL STATEMENTS - CONTINUED (UNAUDITED) APRIL 30, 1998
- --------------------------------------------------------------------------------
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. In January 1998, the Funds provided tax information to
shareowners for the 1997 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 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.
NOTE (C) SHARES OF BENEFICIAL INTEREST: Each Fund is authorized to issue an
unlimited number of shares of beneficial interest with no par value. At April
30, 1998, Chicago Trust and its affiliates owned 2,500 shares of the Growth &
Income Fund, 2,500 shares of the Bond Fund and 1,002,500 shares of the Municipal
Bond Fund.
NOTE (D) INVESTMENT TRANSACTIONS: Aggregate purchases and proceeds from sales of
investment securities (other than short-term investments) for the six months
ended April 30, 1998 were:
<TABLE>
<CAPTION>
AGGREGATE PROCEEDS FROM
PURCHASES SALES
------------- -------------
<S> <C> <C>
GROWTH FUND $ 602,671,234 $ 215,263,985
GROWTH & INCOME FUND 94,607,485 71,845,502
TALON FUND 9,872,486 7,289,690
CT BALANCED FUND 56,959,148 46,397,895
M&C BALANCED FUND 81,526,996 37,620,054
BOND FUND 43,946,426 27,467,498
MUNICIPAL BOND FUND 1,932,888 1,472,537
</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% on the first $800,000,000 of average daily net assets and 0.60% of average
daily net assets over $800,000,000 (effective February 27, 1998) for the Growth
Fund, 0.70% for the Growth & Income Fund, 0.80% for the Talon Fund, 0.70% for
the CT Balanced Fund, 0.75% for the M&C 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 CT Balanced Fund, the M&C Balanced
Fund, the Bond Fund, and the Municipal Bond Fund for operating expenses which
cause total expenses to exceed 0.98%, 1.30%, 1.10%, 1.30%, 1.10%, 1.25%, 0.80%,
and 0.10%, respectively. Effective February 27, 1998, the expense reimbursement
level for the Municipal Bond Fund changed from 0.90% to 0.10% and the Advisor
for the Money Market Fund will no longer waive fees or reimburse expenses.
Expense reimbursements may be terminated at the discretion of the Advisors. For
the six months ended April 30, 1998, the Advisors reimbursed expenses of $22,595
for the Talon Fund, $116,618 for the Bond Fund, $52,819 for the Municipal Bond
Fund and $24,451 for the Money Market Fund.
42
<PAGE>
ALLEGHANY FUNDS
NOTES TO FINANCIAL STATEMENTS - CONTINUED (UNAUDITED) APRIL 30, 1998
- --------------------------------------------------------------------------------
Effective June 1, 1997, First Data Investor Services Group, Inc. ("Investor
Services Group") replaced FPS Services, Inc. as sub-administrator of the Funds.
Chicago Trust is the Funds' Administrator. For services provided as the Funds'
Administrator, Chicago Trust receives the following fees, which are paid in
total to Investor Services Group.
<TABLE>
<CAPTION>
Administration Fees Custody Liaison Fees
------------------- --------------------
Fee (% of Funds' Aggregate Average Daily Net Assets Annual Fee Average Daily Net Assets
-------------------------- ------------------------ ---------- ------------------------
daily net assets) (per Fund) (per Fund)
----------------- ---------- ----------
<S> <C> <C> <C> <C>
0.060 up to $2 billion $10,000 up to $100 million
0.045 $2 billion to $3.5 billion $15,000 $100 million to $500 million
0.040 over $3.5 billion $20,000 over $500 million
</TABLE>
Effective June 1, 1997, First Data Distributors, Inc. Replaced FPS Broker
Services, Inc. as principal underwriter and distributor of the Funds' shares.
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 CT Balanced Fund, the M&C 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% (currently, Chicago Trust
Municipal Bond Fund's Rule 12b-1 fee is reduced to 0.10%) of each
participating Fund's average daily net assets. The Growth Fund Institutional
Class and the Money Market Fund do not have distribution plans.
For the six months ended April 30, 1998, the class specific expenses of the
Growth Fund were:
<TABLE>
<CAPTION>
CLASS N (RETAIL) CLASS I (INSTITUTIONAL)
<S> <C> <C>
Transfer agent fees . . . . . . . . . . . . . . . . . . . . . . . . . $ 136,242 $ 9,232
Registration expenses . . . . . . . . . . . . . . . . . . . . . . . . 101,725 63,572
Legal fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,023 7,391
Reports to shareowner expenses. . . . . . . . . . . . . . . . . . . . 17,182 9,908
</TABLE>
Certain officers and Trustees of the Funds are also officers and directors of
Chicago Trust. The Funds do not compensate its officers or affiliated Trustees.
Effective January 1, 1998, the Company pays each unaffiliated Trustee $2,000 per
Board of Trustees meeting attended and an annual retainer of $2,000.
43
<PAGE>
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<PAGE>
TRUSTEES
Leonard F. Amari*
Stuard D. Bilton, Chairman
Dorothea C. Gilliam
Gregory T. Mutz*
Nathan Shapiro*
*Unafilliated Trustee
ADVISORS
The Chicago Trust Company
171 North Clark Street
Chicago, IL 60601-3294
Montag & Caldwell, Inc.
3343 Peachtree Road, NE, Suite 1100
Atlanta, GA 30326-1022
SHAREOWNER
SERVICES
First Data Investor Services Group, Inc.
4400 Computer Drive
Westborough, MA 01581
DISTRIBUTOR
First Data Distributors, Inc.
4400 Computer Drive
Westborough, MA 01581
OFFICERS
Kenneth C. Anderson, President
David F. Seng, Senior Vice President
Gerald F. Dillenburg, Vice President,
Secretary and Treasurer
CUSTODIAN
Bankers Trust
One Bankers Trust Place
New York, NY 10001
LEGAL COUNSEL
Sonnenschein Nath & Rosenthal
8000 Sears Tower
Chicago, IL 60606
AUDITOR
KPMG Peat Marwick LLP
303 East Wacker Drive
Chicago, IL 60601
[LOGO] ALLEGHANY FUNDS
Distributed by First Data Distributors, Inc., 4400 Computer Drive, Westborough,
Massachusetts 01581, 7/1/98
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 Fund's objectives, policies, expenses and other
information.
