CT&T
FUNDS
Annual
Report
October 31, 1997
[ART WORK APPEARS HERE]
A Report on the Operations and Performance of Your Investment in
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
The Chicago Trust Company, Investment Advisor
Montag & Caldwell, Inc., Investment Advisor
(800) 992-8151
<PAGE>
CT&T Funds -- Shareowner Benefits
- --------------------------------------------------------------------------------
The CT&T Funds offer a variety of special features and options for shareowners.
If you are not already taking advantage of these features and wish to do so,
call us! A customer service representative at (800) 992-8151 will help you gain
access to our free share owner options.
[ART WORK]
Low Minimum Investments
The minimum initial investment is $2,500 and any subsequent investment is $50.
[ART WORK]
Automatic Investment
You may elect to make regular investments into your account automatically by
approving electronic funds transfers into your CT&T Funds. The minimum initial
investment for the automatic investment plan is $50.
[ART WORK]
Savings for Retirement
Our easy and convenient IRA offers you a selection of mutual funds especially
suitable for your retirement accounts while your assets benefit from tax-
deferred growth.
[ART WORK]
Automatic Dividend Reinvestment
You can compound your investment earnings by reinvesting them automatically.
Monthly or quarterly dividends and annual capital gain distributions are
reinvested free of charge.
[ART WORK]
Exchange Privileges
Should your personal investment needs change, you have the flexibility to move
your investments among the CT&T Funds. Transfers between the Funds are free of
charge, and simple to make.
[ART WORK]
Check Writing
Free check writing services may be authorized and are available in the Chicago
Trust Money Market Fund. The per check minimum is $500.
Our automated shareowners account information line is available for your
convenience 24-hours a day, 7 days a week by calling (800) 992-8151.
<PAGE>
Dear Shareowner:
The fiscal year ended October 31, 1997 has been financially rewarding for all
investors in our funds. Holders of our equity portfolios have realized returns
ranging from 25.2% in the Chicago Trust Growth & Income Fund (Growth & Income)
to 34.3% in the Montag & Caldwell Growth Fund (Growth) "I" Class of shares. Our
Chicago Trust Talon Fund (Talon) has earned a very impressive 33.5% total return
despite holding significant cash reserves throughout the period. Fixed income
returns have ranged from 5.1% in our tax-free Municipal Bond Fund to 8.8% in the
taxable Bond Fund. Holders of our Money Market Fund have realized a 5.17% return
over the past twelve months.
Obviously, there is more information printed about mutual funds than anyone can
reasonably read or would want to read. However, on the assumption that most of
our shareowners do not read all of the financial advisory publications now
available, we thought you might like to know a sample of who has written about
our Funds during the last twelve months.
<TABLE>
<CAPTION>
Publication Date Funds
- ----------- ---- -----
<S> <C> <C>
Crain's Chicago Business December 23, 1996 Growth & Income
"Chicago Trust Fund
Manager Takes Long Views in Stock Picks"
Kiplinger's Magazine March 1997 Growth
"Best Funds: Investing for College"
Money Magazine March 1997 Growth
"Invest Like a Millionaire with these Funds"
Ft. Lauderdale Sun-Sentinel May 11, 1997 Growth & Income
"A Few Strong Growth Stocks Power Chicago Trust"
Financial Planning Magazine May 1997 Growth & Income, Talon
"Undiscovered Funds Still Abound"
Louis Rukeyser's Mutual Funds September 1997 Growth & Income
"A Wealth of Experience"
Louis Rukeyser's Mutual Funds October 1997 Growth
"A Global Opportunist"
Money Magazine November 1997 Talon
"What to Do Now to Protect Your Profits"
</TABLE>
It is customary in letters of this sort to fill space with prognostications
about the economic and financial outlook. We do not believe that is a very
useful exercise in a world where the batting average of most forecasters is less
than 50%. Instead, we wish to assure you that despite recent market returns our
enthusiasm will remain in check. We will continue to pursue our bottom-up
disciplined investment approaches, choosing securities based on fundamentals of
the business and our time-tested valuation techniques.
To all of our long-term investors, we hope we have met your expectations. To our
newer investors, we thank you for choosing the Chicago Trust/Montag & Caldwell
Funds. We will do all that we can to help you reach your financial goals. In
March 1998, to enhance and simplify your investment process, we will introduce
our website. Thank you for investing with Chicago Trust/Montag & Caldwell Funds.
Sincerely,
/s/ Stuart D. Bilton
Stuart D. Bilton
Chairman
1
<PAGE>
CT&T Funds -- Summary Information
Performance for the Fiscal Year Ended October 31, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Montag & Caldwell Growth Fund
Class N (Retail) Class I (Institutional) Chicago Trust Growth & Income Fund
<S> <C> <C> <C>
Total Returns:
1 Year 33.82% 34.26% 25.16%
Three Year
Average Annual N/A N/A 26.93%
Average Annual
Since Inception 31.92% 33.56% 20.78%
Value of $10,000 $22,925 $ 14,724 $20,801
from Inception
Date 11/2/94 6/28/96 12/13/93
</TABLE>
<TABLE>
<CAPTION>
Top Ten Holdings as of October 31, 1997
<S> <C> <C> <C>
Company and Cisco Systems, Inc. 4.5% Federal Home Loan Mortgage Corp. 3.9%
% of Total Net Microsoft Corp. 4.0% Illinois Tool Works, Inc. 3.9%
Assets Gillette Co. 4.0% Royal Dutch Petroleum Co., NY, ADR 3.9%
Pfizer, Inc. 3.8% American International Group, Inc. 3.8%
Coca-Cola Co. 3.8% Norwest Corp. 3.8%
Procter & Gamble Co. 3.7% Cardinal Health, Inc. 3.7%
Johnson & Johnson 3.6% Pfizer, Inc. 3.6%
Intel Corp. 3.2% Microsoft Corp. 3.5%
Oracle Corp. 3.2% Newell Co. 3.3%
Home Depot, Inc. 3.2% Sysco Corp. 3.2%
</TABLE>
<TABLE>
<CAPTION>
Chicago Trust Talon Fund Chicago Trust Balanced Fund
<S> <C> <C>
Total Returns:
1 Year 33.47% 20.10%
Three Year
Average Annual 26.16% N/A
Average Annual
Since Inception 26.08% 18.20%
Value of $10,000 $20,582 $14,229
from Inception
Date 9/19/94 9/21/95
</TABLE>
<TABLE>
<CAPTION>
Top Ten Holdings as of October 31, 1997
<S> <C> <C> <C>
Company and Mylan Laboratories, Inc. 5.4% Pfizer, Inc. 2.3%
% of Total Net U. S. Treasury Note, 5.875%, 07/31/99 5.3% Norwest Corp. 2.0%
Assets Vitalink Pharmacy Services, Inc. 5.1% American International Group, Inc. 1.9%
Robotic Vision Systems, Inc. 5.1% Schlumberger Ltd. 1.9%
Circus Circus Enterprises, Inc. 4.9% Federal Home Loan Mortgage Corp. 1.8%
North American Vaccine, Inc. 4.9% Cisco Systems, Inc. 1.7%
Pep Boys -- Manny, Moe & Jack 4.9% Microsoft Corp. 1.7%
R.R. Donnelley & Sons Co. 4.7% Illinois Tool Works, Inc. 1.7%
Danielson Holdings Corp. 4.4% MBNA Corp. 1.7%
Equity Office Properties Trust, REIT 4.3% Newell Co. 1.5%
</TABLE>
2
<PAGE>
CT&T Funds -- Summary Information
Performance for the Fiscal Year Ended October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Montag & Caldwell Balanced Fund Chicago Trust Bond Fund
<S> <C> <C> <C> <C>
Total Returns:
1 Year 24.26% 8.84%
Three Year
Average Annual N/A 9.77%
Average Annual
Since Inception 22.83% 6.56%
Value of $10,000 $18,509 $12,797
from Inception
Date 11/2/94 12/13/93
Top Ten Holdings as of October 31, 1997
<S> <C> <C> <C> <C>
Company and U.S. Treasury Note, 7.250%, 05/15/16 4.1% U.S. Treasury Bond, 7.125%, 02/15/23 2.3%
% of Total Net U.S. Treasury Note, 6.500%, 10/15/06 3.1% U.S. Treasury Note, 7.250%, 05/15/04 2.2%
Assets Cisco Systems, Inc. 2.5% U.S. Treasury Note, 7.875%, 08/15/01 2.2%
U.S. Treasury Note, 6.500%, 08/15/05 2.5% U.S. Treasury Note, 7.125%, 02/29/00 2.1%
Federal National Mortgage Association, U.S. Treasury Note, 6.375%, 08/15/02 2.1%
7.250%, 01/17/21, CMO, REMIC 2.5% U.S. Treasury Note, 5.750%, 10/31/00 2.1%
U.S. Treasury Note, 5.875%, 02/15/04 2.4% U.S. Treasury Note, 5.500%, 02/28/99 2.1%
Gillette Co. 2.3% U.S. Treasury Note, 5.750%, 08/15/03 2.1%
Procter & Gamble Co. 2.2% U.S. Treasury Note, 5.125%, 11/30/98 2.1%
Microsoft Corp. 2.2% Chemical Master Credit Card Trust, Class A
Johnson & Johnson 2.2% 5.550%, 09/15/03 2.1%
</TABLE>
<TABLE>
<CAPTION>
Chicago Trust Municipal Bond Fund
<S> <C> <C> <C>
Total Returns:
1 Year 5.13%
Three Year
Average Annual 5.97%
Average Annual
Since Inception 4.07%
Value of $10,000 $11,673
from Inception
Date 12/13/93
Top Ten Holdings as of October 31, 1997
<S> <C> <C> <C> <C>
Company and King County, Washington, Series A, Commonwealth of Puerto Rico, Series A, G.O.
% of Total Net G.O., 5.800%, 01/01/04 4.1% 6.500%, 07/01/03 3.6%
Assets Jordan School District, Utah, Clark County, Nevada, School District, G.O.
Series A, G.O., 5.250%, 06/15/00 4.0% 6.400%, 06/15/06 3.1%
Cook County, Illinois, Series B, G.O. Arlington Independent School District, Texas,
4.700%, 11/15/01 3.9% Refunding, G.O., 5.400%, 02/15/99 3.1%
Salt River Project Electric System Mohave County, AZ, IDA, 6.000%, 07/01/00 3.0%
Revenue, AZ, Refunding, Series A, Tulsa, Oklahoma Metropolitan Utility Authority
5.500%, 01/01/05 3.9% Revenue, 5.500%, 07/01/00 2.9%
Texas State Water Development Board,
G.O. Escrowed to Maturity, 5.000%,
08/01/99 3.7%
</TABLE>
3
<PAGE>
CT&T Funds
Montag & Caldwell Growth Fund
Management Discussion & Analysis October 31, 1997
- --------------------------------------------------------------------------------
The Montag & Caldwell Growth Fund (the "Fund") did particularly well in this
past fiscal year ended October 31, 1997. The Fund had a total return of 33.8% as
compared to a gain of 32.0% for the S&P 500 Index. During this same period, the
Lipper Growth Fund Index returned 28.4%. The Fund's multinational consumer,
healthcare and technology holdings contributed to the Fund's good results.
The outlook for the stock market continues to be positive. Sustained growth in
the economy and corporate profits; continued prospects for low rates of
inflation and steady to eventually lower levels of bond yields; and favorable
supply/demand factors for equities coupled with guarded views among investors on
the stock market outlook suggest a positive backdrop for share prices. It is our
view that the recent stock market correction associated with the currency
turmoil in Southeast Asia is an "overdue correction" rather than the beginning
of a substantial decline in share prices. From January 1, 1995, through
September 30, 1997, the S&P 500 Index has provided a total return of 119.3%, so
a pullback in share prices was not all that surprising. Our favorable view on
the stock market is predicated on the belief that U. S. economic growth will
moderate to a non-inflationary rate and that the Federal Reserve is in a
flexible position to implement policies that will extend the economic expansion.
The currency and financial market turmoil in Southeast Asia should contribute to
that moderating process.
We continue to be quite positive on the outlook for shares of high quality
growth companies. Because we expect more moderate growth in the U. S. economy
and corporate profits in the future, superior and consistent earnings growth
rates of these companies will become increasingly attractive. We do not expect
the turmoil in Southeast Asia to have a significant impact on the U. S.
multinational companies in the Fund. While economic growth will slow in
Southeast Asia, the region is not expected to experience an economic downturn as
severe as that of Mexico and other Latin American countries during their period
of financial stress. Most importantly, the multinational companies in the
Portfolio sell consumer non-durable products that we don't think will be
affected proportionately by a slowdown. Even in a U.S. recession, demand does
not slow significantly for products such as soft drinks, blades and detergent.
Also, other areas of the world are showing good growth, which offsets the
weakness in Southeast Asia. Such geographic diversity is one of the reasons the
Fund's multinational holdings have consistently produced solid earnings over the
years.
[PIE CHART APPEARS HERE]
Portfolio Allocation By Market Sector
Cash & Other Net Liabilities 3%
Technology 28%
Consumer Non-Durables 15%
Pharmaceuticals 9%
Health Care Services 7%
Retail 6%
Finance 7%
Food & Beverage 6%
Other Common Stocks 19%
Comparative Performance Measurement: Growth of $10,000 Invested in Montag &
Caldwell Growth Fund,
S&P 500 Index and the Lipper Growth Fund Index
since Fund's Inception
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Montag &
Caldwell
Lipper Growth Fund
S&P 500 Growth Class N
Values/Years Index Fund Index Shares
- ------------ ------- ---------- -----------
<S> <C> <C> <C>
November 1994 10,000 10,000 10,000
January 1995 10,032 9,739 10,005
April 1995 11,046 10,699 10,999
July 1995 12,142 12,075 12,630
October 1995 12,641 12,398 13,187
January 1996 13,907 13,183 14,178
April 1996 14,380 13,789 15,065
July 1996 14,152 13,145 14,874
October 1996 15,685 14,498 17,131
January 1997 17,568 15,915 19,367
April 1997 17,992 15,733 19,245
July 1997 21,527 18,897 23,571
October 1997 20,720 18,617 22,925
</TABLE>
<TABLE>
<CAPTION>
Montag &
Caldwell
Lipper Growth Fund
S&P 500 Growth Class I
Values/Years Index Fund Index Shares
- ------------ ------- ---------- -----------
<S> <C> <C> <C>
June 1996 10,000 10,000 10,000
October 1996 10,593 10,433 10,967
January 1997 11,865 11,453 12,087
April 1997 12,152 11,322 12,341
July 1997 14,539 13,598 15,125
October 1997 13,994 13,397 14,724
</TABLE>
These charts compare a $10,000 investment made in Class N Shares and Class I
Shares of the Fund on their respective inception dates to a $10,000 investment
made in the indices on that date. All dividends and capital gains are
reinvested. Further information relating to the Fund's performance, including
expense reimbursements, is contained in the Condensed Financial Information
section of the Prospectus and elsewhere in this report. Past performance is not
indicative of future performance. Indices are unmanaged and investors cannot
invest in them.
4
<PAGE>
CT&T Funds
Chicago Trust Growth & Income Fund
Management Discussion & Analysis October 31, 1997
================================================================================
The Chicago Trust Growth & Income Fund (the"Fund")had a strong gain of 25.2% for
the fiscal year ended October 31, 1997. While the one year return was less than
that of the S&P 500 Index or the Lipper Growth & Income Fund Index, on a three
year basis, the Fund's 26.9% annualized rate of return was in line with that of
the S&P 500 Index, at 27.5%. The Fund's return was well above that of the Lipper
Growth & Income Fund Index, at 23.2%. The Fund ranked 43rd out of 382 Growth &
Income Funds listed by Lipper Analytical Services, Inc. based on total return
fund performance for the three-year period ended October 31, 1997. These Lipper
rankings include all classes of multiple class funds, and certain expenses of
the Fund were subsidized during the ranking period.
While the stock market's gain in fiscal 1997 was the strongest of the past three
years, there was little doubt that the advance became more labored during the
closing months of the year. Two of the last three months were down with the
final quarter having the poorest return for any such period during the last
three fiscal years. October was particularly volatile as it incorporated the
often anticipated 10% market correction, several single day price change
records, and a single session volume record.
As a long-term investor, we recognize that volatility may occur in the Portfolio
during periods when the stock market is dominated by themes which are contrary
to the Fund's investment strategy. Our long term stock selection process will
continue to focus on fundamentally strong companies which are able to
demonstrate traits of consistent top and bottom line growth. Volatile markets
may result in short-term underperformance, but can also represent attractive
entry points for long-term investors.
[PIE CHART APPEARS HERE]
Portfolio Allocation By Market Sector
Consumer Durables 6%
Capital Goods 6%
Energy 7%
Consumer Non-Durables 11%
Health Care Services 10%
Technology 14%
Other Common Stocks 19%
Cash & Other Net Assets 6%
Finance 21%
Comparative Performance Measurement: Growth of
$10,000 invested in Chicago Trust Growth & Income Fund,
S&P 500 Index and the Lipper Growth & Income Fund
Index since Fund's Inception
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
LIPPER GROWTH CHICAGO TRUST
S&P & INCOME FUND GROWTH &
Values/Years 500 INDEX INDEX INCOME FUND
- ------------ ---------- ------------- -------------
<S> <C> <C> <C>
12/93 $10,000 $10,000 $10,000
4/94 $ 9,745 $ 9,807 $ 9,797
7/94 $ 9,979 $ 9,993 $ 9,945
10/94 $10,360 $10,241 $20,173
1/95 $10,394 $10,115 $10,365
4/95 $11,444 $11,036 $11,231
7/95 $12,580 $12,011 $12,327
10/95 $13,096 $12,318 $13,088
1/96 $14,408 $13,448 $14,350
4/96 $14,898 $14,021 $14,983
7/96 $14,663 $13,587 $14,933
10/96 $16,250 $14,953 $16,619
1/97 $18,201 $16,463 $18,002
4/97 $18,641 $16,616 $18,258
7/97 $22,303 $19,584 $21,812
10/97 $21,466 $19,144 $20,801
</TABLE>
This chart compares a $10,000 investment made in the Fund on its inception date
to a $10,000 investment made in the indices on that date. All dividends and
capital gains are reinvested. Further information relating to the Fund's
performance, including expense reimbursements, is contained in the Condensed
Financial Information section of the Prospectus and elsewhere in this report.
Past performance is not indicative of future performance. Indices are unmanaged
and investors cannot invest in them.
5
<PAGE>
CT&T Funds
Chicago Trust Talon Fund
Management Discussion & Analysis October 31, 1997
================================================================================
For the fiscal year ending October 31, 1997, the Chicago Trust Talon Fund (the
"Fund") had a total return of 33.5% versus 32.7% for the S&P 400 Mid Cap Index.
From its inception on September 19, 1994 through October 31, 1997, the Fund's
cumulative return was 105.8% versus 88.4% for the S&P 400 Mid Cap Index.
The recent disarray in Asian markets points out that diversification in itself
may not protect one from loss of principal and that globalization can work as
unfavorably for corporate profits on the way down as it does favorably on the
way up. Globalization and diversification will be subjects of future quarterly
reports. We hope that previous quarterly reports have been helpful in conveying
our investment philosophy and thought process. If you are a new shareowner and
would like to receive a few of our past quarterly reports, please call Janice
Gonnella at 312-422-5403.
We believe we are entering a period that will be characterized by greater
volatility and that stock picking will become even more important than in the
recent past. As we enter our new fiscal year, patience and discipline will
remain a cornerstone of our investment process.
Talon Asset Management, Inc. is a sub-agent of the Chicago Trust Company. As
such, we are responsible for managing your Fund. We at Talon would like to
express our appreciation to Chicago Trust for that opportunity and for their
patience and support over the last three years. The Talon "personality", which
has taken shape over that period of time, could not have happened without the
confidence that both Chicago Trust and you, our shareowners, have placed in us.
[PIE CHART APPEARS HERE]
Portfolio Allocation By Market Sector
<TABLE>
<CAPTION>
<S> <C>
Cash & Other Net Liabilities 3%
Finance 12%
Pharmaceuticals 15%
Restaurants 6%
Technology 11%
Other Common Stocks 26%
Preferred Stocks 1%
U.S. Government & Agency Obligations 26%
</TABLE>
Comparative Performance Measurement: Growth of $10,000
invested in Chicago Trust Talon Fund and
the S&P 400 Mid Cap Index since Fund's Inception
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
S&P 400 CHICAGO TRUST
VALUES/YEARS MID CAP INDEX TALON FUND
------------ ------------- ----------
<S> <C> <C>
9/94 $10,000 $10,000
10/94 $ 9,921 $10,250
1/95 $ 9,660 $10,151
4/95 $10,551 $10,766
7/95 $11,829 $12,173
10/95 $12,025 $12,189
1/96 $12,701 $12,762
4/96 $13,695 $14,580
7/96 $12,747 $13,530
10/96 $14,111 $15,420
1/97 $15,482 $18,020
4/97 $15,082 $16,935
7/97 $18,531 $20,074
10/97 $18,721 $20,582
</TABLE>
This chart compares a $10,000 investment made in the Fund on its inception date
to a $10,000 investment made in the indices on that date. All dividends and
capital gains are reinvested. Further information relating to the Fund's
performance, including expense reimbursements, is contained in the Condensed
Financial Information section of the Prospectus and elsewhere in this report.
Past performance is not indicative of future performance. Indices are unmanaged
and investors cannot invest in them.
6
<PAGE>
CT&T Funds
Chicago Trust Balanced Fund
Management Discussion & Analysis October 31, 1997
================================================================================
For the fiscal year ended October 31, 1997 the Chicago Trust Balanced Fund (the
"Fund") reported a total return of 20.1%. Again this year, common stocks
produced the greatest component of total return. The equities in the Portfolio
returned 32% and bonds produced approximately 11.5%, for this fiscal year. Both
bond and equity returns were competitive when measured against the S&P 500 Index
return of 32.5% and the Lehman Brothers Aggregate Bond Index return of 10.1%.
Over the course of the year, the asset allocation for stocks remained in the 52%
to 56% range and bonds in the 34% to 39% range, while cash reserves were
maintained in the 6% to 11% range.
When reviewing stock market history, October is many times the cruelest month of
the year--consider 1929 and 1987. Again, on October 27, 1997, the stock market
experienced a significant drop of 554 points. Such volatility demonstrates the
advantages of a balanced fund. Over the past few years, a debate has been
brewing in academic circles regarding the value and contribution of asset
allocation. A 1986 research study by Brinson, Hood and Beebower contends that,
on average, 93.6% of a portfolio return is explained by the mix of stocks, bonds
and cash. Other studies contend that asset mix explains approximately 20% to 25%
of return. We continue to believe that asset allocation is incredibly important
in your total long-term return and a well diversified balanced fund can enhance
your expected return.
The outlook for equity investment remains positive but investors should exercise
caution in making new investment commitments with special attention paid to
valuation levels on individual stocks and bonds. This is no time to "pay up" for
stocks and bonds. The Fund will continue to stress individual company
fundamentals and reasonable prices in its selection process.
Equity investment in health care, finance, energy and consumer staples has
enhanced the performance of the stock portfolio. The bond portfolio continues to
stress quality and intermediate term maturities. By diversifying investments
among various asset classes, the total risk of significant loss declines as
compared to investing in a single asset class.
[PIE CHART APPEARS HERE]
Portfolio Allocation By Market Sector
Cash & Other Net Assets 7%
Common Stocks 53%
Corporate Notes & Bonds 18%
U.S. Government & Agency Obligations 18%
Other 2%
Asset Backed Securities 2%
Comparative Performance Measurement: Growth of
$10,000 invested in Chicago Trust Balanced Fund, Lehman
Brothers Aggregate Bond Index/S&P 500 Index and the
Lipper Balanced Fund Index since Fund's Inception
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Lehman Brothers
Aggregate
Bond Index/ Lipper
S&P 500 Balanced Chicago Trust
Values/Years Index Fund Index Balanced Fund
- -------------- --------------- ---------- -------------
<S> <C> <C> <C>
September 1995 10,000 10,000 10,000
October 1995 10,039 9,975 10,108
January 1996 10,752 10,635 10,796
April 1996 10,817 10,751 10,893
July 1996 10,783 10,616 10,926
October 1996 11,625 11,420 11,847
January 1997 12,493 12,187 12,612
April 1997 12,708 12,213 12,720
July 1997 14,481 13,874 14,438
October 1997 14,237 13,715 14,229
</TABLE>
This chart compares a $10,000 investment made in the Fund on its inception date
to a $10,000 investment made in the indices on that date. All dividends and
capital gains are reinvested. Further information relating to the Fund's
performance, including expense reimbursements, is contained in the Condensed
Financial Information section of the Prospectus and elsewhere in this report.
Past performance is not indicative of future performance. Indices are unmanaged
and investors cannot invest in them.
7
<PAGE>
CT&T Funds
Montag & Caldwell Balanced Fund
Management Discussion & Analysis October 31, 1997
================================================================================
The Montag & Caldwell Balanced Fund (the "Fund") achieved a strong gain of 24.3%
for the fiscal year ended October 31, 1997. During the same period, the combined
index of the S&P 500 Index and the Lehman Brothers Aggregate Bond Index
increased 21.4%. The Lipper Balanced Fund Index gained 20.1% during the same
interval. The Fund's multinational consumer, healthcare and technology equity
holdings contributed to the Fund's good results.
The outlook for the stock market continues to be positive. Sustained growth in
the economy and corporate profits; continued prospects for low rates of
inflation and steady to eventually lower levels of bond yields; and favorable
supply/demand factors for equities coupled with guarded views among investors on
the stock market outlook suggest a positive backdrop for share prices. It is our
view that the recent stock market correction associated with the currency
turmoil in Southeast Asia is an "overdue correction" rather than the beginning
of a substantial decline in share prices. From January 1, 1995, through
September 30, 1997, the S&P 500 Index has provided a total return of 119.3%, so
a pullback in share prices was not all that surprising. Our favorable view on
the stock market is predicated on the belief that U. S. economic growth will
moderate to a non-inflationary rate and that the Federal Reserve is in a
flexible position to implement policies that will extend the economic expansion.
The currency and financial market turmoil in Southeast Asia should contribute to
that moderating process.
We continue to be quite positive on the outlook for shares of high quality
growth companies. Because we expect moderate growth in the U. S. economy and
corporate profits in the future, the superior and consistent earnings growth
rates of these companies will become increasingly attractive. We do not expect
the turmoil in Southeast Asia to have a significant impact on the U. S.
multinational companies in the Portfolio. While economic growth will slow in
Southeast Asia, the region is not expected to experience an economic downturn as
severe as that of Mexico and other Latin American countries during their period
of financial stress. Most importantly, the multinational companies in the
Portfolio sell consumer non-durable products that we don't think will be
affected proportionately by a slowdown. Even in a U.S. recession, demand does
not slow significantly for products such as soft drinks, blades and detergent.
Also, other areas of the world are showing good growth, which offsets the
weakness in Southeast Asia. Such geographic diversity is one of the reasons the
Fund's multinational holdings have consistently produced solid earnings gains
over the years.
With economic growth likely to slow and inflation well-controlled, we think
there is the potential for positive bond market returns in the period ahead. In
addition to gradually lengthening bond maturities, we will seek to add yield,
where appropriate, through the purchase of quality corporate bonds as well as
agency issues.
[PIE CHART APPEARS HERE]
Portfolio Allocation By Market Sector
Cash & Other Net Assets 4%
Common Stocks 58%
U.S. Government & Agency Obligations 26%
Corporate Notes & Bonds 9%
Asset Backed Securities 3%
Comparative Performance Measurement:
Growth of $10,000 invested in Montag & Caldwell Balanced
Fund, Lehman Brothers Aggregate Bond Index/S&P 500
Index and the Lipper Balanced Fund Index
since Fund's Inception
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Lehman Brothers Aggregate Lipper Balanced Montag & Caldwell
Values/Yrs. Bond Index/ S&P Index Fund Index Balanced Fund
<S> <C> <C> <C>
11/94 10,000 10,000 10,000
1/95 10,128 9,983 10,079
4/95 10,891 10,652 10,817
7/95 11,706 11,424 11,944
10/95 12,539 11,759 12,375
1/96 13,040 12,537 13,172
4/96 13,141 12,674 13,446
7/96 13,090 12,515 13,410
10/96 14,881 13,462 14,895
1/97 15,230 14,343 16,162
4/97 15,498 14,397 16,071
7/97 17,717 16,355 18,635
10/97 17,894 16,168 18,509
</TABLE>
This chart compares a $10,000 investment made in the Fund on its inception date
to a $10,000 investment made in the indices on that date. All dividends and
capital gains are reinvested. Further information relating to the Fund's
performance, including expense reimbursements, is contained in the Condensed
Financial Information section of the Prospectus and elsewhere in this report.
Past performance is not indicative of future performance. Indices are unmanaged
and investors cannot invest in them.
8
<PAGE>
CT&T Funds
Chicago Trust Bond Fund
Management Discussion & Analysis October 31, 1997
- --------------------------------------------------------------------------------
Bond market performance over the twelve months ended October 31, 1997, has been
influenced by a range of circumstances. At the beginning of the fiscal year,
investors were anticipating the need for the Federal Reserve to raise interest
rates to help moderate economic growth. A federal funds overnight lending rate
increase of .25% occurred at the end of March 1997. As the year elapsed,
sentiment quickly changed. Many traditional signs of economic strength such as
low unemployment, industrial production and a declining government deficit
raised concerns. Most people felt that the Federal Reserve would be forced to
raise rates in order to avoid higher inflation. Productivity, growth and global
competition has kept inflation lower than predicted by many economic "experts."
At the time of this writing, a new theme of "deflation" has become increasingly
popular due to the renewed risks of investing in emerging market countries.
For the fiscal year ended October 31, 1997, the Chicago Trust Bond Fund (the
"Fund") had a total return of 8.84%. The Fund compares its performance to both
the Lehman Brothers Aggregate Bond Index, with a total return of 8.89% for the
same period, and the Lipper Intermediate Investment Grade Debt Fund Index, which
had a total return of 8.04% during the same period.
The Fund continues to emphasize corporates and mortgages which represent 66% of
total assets. We believe that superior returns are achieved from the results of
independent, fundamental security analysis combined with the rigorous
application of a precise, disciplined portfolio construction process. Rather
than attempting to time the market, we firmly believe in adding value through
sector analysis, credit quality research and security structure analysis. We
believe our focus on long term, intrinsic value captures yield without
increasing portfolio risk.
Throughout the year, corporate bonds contributed favorably to the Fund's
comparatively strong investment results. The Fund focuses on selecting corporate
obligations that will enhance the Fund's overall return while maintaining a
strict adherence to required risk parameters. Both asset-backed and mortgage
bonds also can provide investors with strong relative returns. Prepayment risk
is analyzed under numerous interest rate scenarios to evaluate sensitivity to
changes in rates. Government bonds are used to capture risk neutral anomalies
based on the slope of the yield curve.
Changes in the Portfolio's duration are made based on our 12- to 18-month
outlook for bond returns. We are not market timers. Duration changes are
constrained to a range of plus or minus 10% of the duration of the Lehman
Brothers Aggregate Bond Index. We will also adjust the distribution of our
Portfolio's maturity and duration based on the current slope of the yield curve
to capture incremental return and to control systematic risk. Over the last
year, the Fund's effective duration has ranged from a high of 4.7 years to a low
of 4.5 years. Currently, the effective portfolio duration is 4.6 years.
[PIE CHART PORTFOLIO ALLOCATION BY MARKET SECTOR GOES HERE]
Portfolio Allocation By Market Sector
Cash & Other Net Assests 4%
U.S. Government & Agency Obligations 47%
Corporate Notes & Bonds 40%
Other 4%
Asset Backed Securities 5%
Comparative Performance Measurement:
Growth of $10,000 invested in Chicago Trust Bond Fund,
Lehman Brothers Aggregate Bond Index and the Lipper
Intermediate Investment Grade Debt Fund Index since
Fund's Inception
[CHART COMPARATIVE PERFORMANCE MEASUREMENT GOES HERE]
<TABLE>
<CAPTION>
Lehman Brothers Aggregate Lipper Intermediate Investment Chicago Trust
Values/Yrs. Bond Index Grade Debt Fund Index Bond Fund
<S> <C> <C> <C>
12/93 10,000 10,000 10,000
4/94 9,507 9,524 9,682
7/94 9,674 9,640 9,768
10/94 9,535 9,537 9,677
1/95 9,769 9,720 9,894
4/95 10,203 10,121 10,307
7/95 10,651 10,520 10,735
10/95 11,026 10,885 11,117
1/96 11,424 11,267 11,507
4/96 11,085 10,930 11,169
7/96 11,241 11,070 11,331
10/96 11,671 11,465 11,758
1/97 11,797 11,589 11,926
4/97 11,870 11,641 11,972
7/97 12,451 12,191 12,555
10/97 12,709 12,388 12,797
</TABLE>
This chart compares a $10,000 investment made in the Fund on its inception date
to a $10,000 investment made in the indices on that date. All dividends and
capital gains are reinvested. Further information relating to the Fund's
performance, including expense reimbursements, is contained in the Condensed
Financial Information section of the Prospectus and elsewhere in this report.
Past performance is not indicative of future performance. Indices are unmanaged
and investors cannot invest in them.
9
<PAGE>
CT&T Funds
Chicago Trust Municipal Bond Fund
Management Discussion & Analysis October 31, 1997
- --------------------------------------------------------------------------------
Over the past year the bond markets can be characterized as having an overall
downward interest rate bias with a notable flattening of the yield curve--in
other words, rates are down and the additional yield gained from extending from
one-year to 30-year maturities has fallen. For example, in October 1996, moving
from one-year to 30 year maturities in AA-rated General Obligation bonds added
almost 2.00% in yield. This October, however, investors added only about 1.50%
in additional yield for the same extension. Also, it is typical to earn 0.10%
additional yield per year in intermediate maturities for each year of extension;
however, for most of 1997, seven- to twelve-year municipal bonds added only
0.05% to 0.07% for annual extensions.
The other significant market anomaly evident this October is the under-
performance of municipals versus taxable bonds. Expressed as a percent of U.S.
Treasury prices, municipal bonds now range from 70% to 87% for one- to 30-year
maturities. These percentages are higher than normal since U.S. Treasury yields
moved up rapidly as a result of the flight to quality from volatile equity and
international markets. Conversely, high seasonal supply in municipals held tax-
exempt bond prices down.
For the fiscal year ended October 31, 1997, total return for the Chicago Trust
Municipal Bond Fund (the "Fund") was 5.13%. The Fund earned an average annual
return of 5.97% for the three year period ended October 31, 1997. While 30-year
municipal bond yields under 6% tend to limit retail buying, this relative
"cheapness" of municipals versus taxables has increased interest in the tax-
exempt market from corporate buyers, especially insurance companies. Year to
year, municipal rates are down, with October 31, 1997, yields on five-year AA-
rated General Obligation bonds at 4.25%, 10 year maturities at 4.65%, and 30
years at 5.20%. Contributions to bond funds for most of the period were slow,
but with continuing volatility in the domestic stock market and weakness
internationally, the coming year should see greater allocations to fixed income
securities.
Activity in the Fund for the fiscal year concentrated on increasing current
income with purchases of 5% to 6% coupon bonds, as well as taking advantage of
attractive levels on issuers from "specialty" states, such as California,
Michigan, and New York. Because of local tax advantages for in-state buyers,
issuers in these states usually sell at lower yields than non-specialty issuers
such as those in Illinois, Washington, or Wisconsin, for example. Due to recent
sizable new issuance from several specialty states, we were able to take
advantage of attractive yield levels for the Fund. At October 31, 1997, the
Fund's average credit quality has been maintained at AA, average maturity at 5.6
years and duration at 4.5 years.
Comparative Performance Measurement:
Growth of $10,000 invested in Chicago Trust Municipal
Bond Fund and the Lehman Brothers Five-Year
Government Obligations Index since Fund's Inception
[COMPARATIVE PERFORMANCE MEASUREMENT CHART APPEARS HERE]
<TABLE>
<CAPTION>
LEHMAN BROTHERS
5-YEAR GOVERNMENT CHICAGO TRUST
VALUES/YEARS OBLIGATIONS INDEX MUNICIPAL BOND FUND
------------ ----------------- -------------------
<S> <C> <C>
12/93 $10,000 $10,000
1/94 $10,094 $10,106
4/94 $ 9,782 $ 9,803
7/94 $ 9,921 $ 9,922
10/94 $ 9,838 $ 9,808
1/95 $ 9,956 $ 9,958
4/95 $10,288 $10,218
7/95 $10,669 $10,518
10/95 $10,855 $10,719
1/96 $11,138 $10,969
4/96 $11,025 $10,811
7/96 $11,156 $10,935
10/96 $11,368 $11,103
1/97 $11,540 $11,230
4/97 $11,548 $11,201
7/97 $11,990 $11,600
10/97 $12,107 $11,673
</TABLE>
[PIE CHART APPEARS HERE]
Portfolio Allocation By Quality Rating
A 8%
Aa 33%
Aaa 56%
Not Rated 3%
This chart compares a $10,000 investment made in the Fund on its inception date
to a $10,000 investment made in the indices on that date. All dividends and
capital gains are reinvested. Further information relating to the Fund's
performance, including expense reimbursements, is contained in the Condensed
Financial Information section of the Prospectus and elsewhere in this report.
Past performance is not indicative of future performance. Indices are unmanaged
and investors cannot invest in them.
10
<PAGE>
CT&T Funds
Chicago Trust Money Market Fund
Management Discussion & Analysis October 31, 1997
- --------------------------------------------------------------------------------
Once again the most recent Federal Reserve Open Market Committee meeting came
and went without a change in interest rates. Policymakers left the Federal Funds
overnight lending rate unchanged at 5.50%. This is the same rate it has been
since late March.
While domestic economic activity continues to show strength, the picture from
overseas, Southeast Asia in particular, remains cloudy. What, if any, effect
this may have on policymaking decisions in the near future remains to be seen.
The short-term yield curve remains very flat. This means that the yield earned
for investing for seven days is approximately the same as the yield for
investing for 270 days. The Chicago Trust Money Market Fund (the "Fund") is
positioned to take advantage of this type of yield curve profile. It has a
weighted average maturity of 33 days, which is almost half the average maturity
of a "typical" prime domestic money market fund.
The performance of the Fund has exceeded its benchmark, the Donaghue's First
Tier Money Market Fund Index, by 0.23% for the quarter ended October 31, 1997.
For the previous 12 months, the outperformance has been 0.20%. The low expenses
of the Fund coupled with the effective structure of the Fund have been the
primary reasons it has continued to outperform other money market funds in the
peer group.
[PIE CHART PORTFOLIO ALLOCATION BY MARKET SECTOR APPEARS HERE]
Portfolio Allocation By Market Sector
Time Deposits 4%
Certificates of Deposit 5%
Commercial Paper 77% [INSERT PIE CHART HERE]
Cash & Other Net Assets 10%
GIC within Funding Agreement 4%
11
<PAGE>
CT&T Funds
Montag & Caldwell Growth Fund
Schedule of Investments October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value
- ------ ------
<S> <C>
COMMON STOCKS - 97.44%
Business Services - 2.26%
440,100 Manpower, Inc...........................................$ 16,888,838
------------
Consumer Durables - 1.82%
490,000 Harley Davidson, Inc.................................... 13,597,500
------------
Consumer Non-Durables - 14.87%
802,500 CUC International, Inc.*................................ 23,673,750
335,000 Gillette Co............................................. 29,835,938
280,000 Interpublic Group of Companies, Inc..................... 13,300,000
427,600 Mattel, Inc............................................. 16,622,950
410,000 Procter & Gamble Co..................................... 27,880,000
------------
111,312,638
------------
Electrical - 2.80%
324,700 General Electric Co..................................... 20,963,444
------------
Entertainment and Leisure - 2.58%
235,000 Walt Disney Co.......................................... 19,328,750
------------
Finance - 6.74%
265,000 American Express Co..................................... 20,670,000
217,400 American International Group, Inc....................... 22,188,387
260,000 First Data Corp......................................... 7,556,250
------------
50,414,637
------------
Food and Beverage - 6.22%
500,000 Coca-Cola Co............................................ 28,250,000
200,000 Pioneer Hi-Bred International, Inc...................... 18,325,000
------------
46,575,000
------------
Health Care Services - 7.47%
475,000 Johnson & Johnson....................................... 27,253,125
405,000 Pfizer, Inc............................................. 28,653,750
------------
55,906,875
------------
Lodging - 2.61%
280,000 Marriott International, Inc............................. 19,530,000
------------
Medical Supplies - 2.67%
460,000 Medtronic, Inc.......................................... 20,010,000
------------
Pharmaceuticals - 8.74%
270,000 Bristol-Myers Squibb Co.................................$ 23,692,500
330,000 Eli Lilly & Co.......................................... 22,068,750
220,000 Merck & Co., Inc........................................ 19,635,000
------------
65,396,250
------------
Restaurants - 2.90%
280,000 Cracker Barrell
Old Country Store, Inc.................................. 8,260,000
300,000 McDonald's Corp......................................... 13,443,750
------------
21,703,750
------------
Retail - 5.68%
350,000 Gap, Inc................................................ 18,615,625
430,000 Home Depot, Inc......................................... 23,918,750
------------
42,534,375
------------
Technology - 27.95%
330,000 Adaptec, Inc.*........................................ 15,984,375
410,000 Cisco Systems, Inc.*.................................. 33,632,812
350,600 Compaq Computer Corp.*................................ 22,350,750
400,000 Electronic Arts, Inc.*................................ 13,550,000
313,700 Intel Corp............................................ 24,154,900
230,000 Microsoft Corp.*...................................... 29,900,000
670,000 Oracle Corp.*......................................... 23,973,438
307,400 Seagate Technology, Inc.*............................. 8,338,225
380,000 Solectron Corp.*...................................... 14,915,000
540,000 3Com Corp.*........................................... 22,376,250
------------
209,175,750
------------
Telecommunications - 2.13%
360,000 Ericsson (LM)
Telefonaktiebolaget, ADR
Class B, Series 10...................................... 15,930,000
------------
Total Common Stocks..................................... 729,267,807
------------
(Cost $582,126,971)
</TABLE>
See accompanying Notes to Financial Statements.
12
<PAGE>
CT&T Funds
Montag & Caldwell Growth Fund
Schedule of Investments - continued October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value
- ------ ------
<S> <C>
INVESTMENT COMPANIES - 3.31%
15,205,543 Bankers Trust Institutional
Cash Management Fund.................. $ 15,205,543
9,534,733 Bankers Trust Institutional
Treasury Money Fund................... 9,534,733
--------------
Total Investment Companies............ 24,740,276
--------------
(Cost $24,740,276)
Total Investments - 100.75%......................... 754,008,083
--------------
(Cost $606,867,247)**
Liabilities Net of Cash and Other Assets - (0.75%).. (5,589,917)
--------------
Net Assets - 100.00%................................ $ 748,418,166
==============
</TABLE>
- -----------------------
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is $606,962,652.
<TABLE>
<S> <C>
Gross unrealized appreciation $ 155,538,447
Gross unrealized (depreciation) (8,493,016)
--------------
Net unrealized appreciation $ 147,045,431
==============
</TABLE>
ADR American Depositary Receipt
See accompanying Notes to Financial Statements.
13
<PAGE>
CT&T Funds
Chicago Trust Growth & Income Fund
Schedule of Investments October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value
- ----------- ------------
<S> <C> <C>
COMMON STOCKS - 94.65%
Business Services - 1.17%
84,000 Paychex, Inc. ..................................... $ 3,202,500
------------
Capital Goods - 5.64%
155,000 AlliedSignal, Inc. ................................ 5,580,000
273,000 Federal Signal Corp. .............................. 6,603,187
41,500 Pitney Bowes, Inc. ................................ 3,291,469
------------
15,474,656
------------
Chemicals - 1.93%
121,400 Praxair, Inc. ..................................... 5,288,487
------------
Consumer Durables - 6.47%
218,000 Illinois Tool Works, Inc. ......................... 10,722,875
157,000 Johnson Controls, Inc. ............................ 7,045,375
------------
17,768,250
------------
Consumer Non-Durables - 11.39%
80,600 Cintas Corp. ...................................... 5,823,350
71,500 Lancaster Colony Corp. ............................ 3,539,250
179,000 Mattel, Inc. ...................................... 6,958,625
234,100 Newell Co. ........................................ 8,983,587
88,000 Procter & Gamble Co. .............................. 5,984,000
------------
31,288,812
------------
Electrical - 2.70%
114,800 General Electric Co. .............................. 7,411,775
------------
Energy - 6.84%
132,800 Exxon Corp. ....................................... 8,158,900
202,000 Royal Dutch Petroleum Co., NY, ADR ................ 10,630,250
------------
18,789,150
------------
Finance - 21.47%
100,000 AFLAC, Inc. ....................................... 5,087,500
102,975 American International Group, Inc. ................ 10,509,886
57,000 Associates First Capital Corp., Class A ........... 3,626,625
284,600 Federal Home Loan Mortgage Corp. .................. 10,779,225
108,000 First Data Corp. .................................. 3,138,750
25,950 General Re Corp. .................................. 5,117,016
145,000 Green Tree Financial Corp. ........................ 6,108,125
158,287 MBNA Corp. ........................................ 4,164,927
325,200 Norwest Corp. ..................................... 10,426,725
------------
58,958,779
------------
Food and Beverage - 4.41%
138,500 Richfood Holdings, Inc., Class A .................. 3,341,313
219,000 Sysco Corp. ....................................... 8,760,000
------------
12,101,313
------------
Health Care Services - 10.23%
137,000 Cardinal Health, Inc. ............................. 10,172,250
333,375 Health Management Associates, Inc., Class A* ...... 8,126,016
138,600 Pfizer, Inc. ...................................... 9,805,950
------------
28,104,216
------------
Pharmaceuticals - 1.85%
57,000 Merck & Co, Inc. .................................. 5,087,250
------------
Retail - 4.26%
51,000 Kohl's Corp.* ..................................... 3,423,375
294,000 Walgreen Co. ...................................... 8,268,750
------------
11,692,125
------------
Technology - 13.70%
76,400 Cisco Systems, Inc.* .............................. 6,267,187
58,600 Computer Sciences Corp.* .......................... 4,156,938
88,000 HBO & Co. ......................................... 3,828,000
73,400 Microsoft Corp.* .................................. 9,542,000
156,000 Oracle Corp.* ..................................... 5,581,875
124,000 Sun Microsystems, Inc.* ........................... 4,247,000
96,250 3Com Corp.* ....................................... 3,988,359
------------
37,611,359
------------
Telecommunications - 2.59%
132,000 Tellabs, Inc.* .................................... 7,128,000
------------
Total Common Stocks ............................... 259,906,672
(Cost $182,870,419) ------------
Par Value
- -----------
REPURCHASE AGREEMENT - 3.65%
$10,017,000 First Chicago,
5.7000%, dated 10/31/97 to be repurchased on
11/03/97 at $10,021,758 (Collateralized by U.S.
Treasury Note 6.000%, due 06/30/99; Total Par
$9,965,000) ....................................... 10,017,000
------------
Total Repurchase Agreement ........................ 10,017,000
(Cost $10,017,000) ------------
</TABLE>
See accompanying Notes to Financial Statements.
14
<PAGE>
CT&T Funds
Chicago Trust Growth & Income Fund
Schedule of Investments -- Continued October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Total Investments - 98.30% ...................................... $269,923,672
(Cost $192,887,419) ** ------------
Net Other Assets and Liabilities - 1.70% ........................ 4,684,235
------------
Net Assets - 100.00% ............................................ $274,607,907
============
</TABLE>
- ----------------------------
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is $192,887,419.
<TABLE>
<S> <C>
Gross unrealized appreciation $81,936,543
Gross unrealized (depreciation) (4,900,290)
-----------
Net unrealized appreciation $77,036,253
===========
</TABLE>
ADR American Depositary Receipt
See accompanying Notes to Financial Statements.
15
<PAGE>
CT&T Funds
Chicago Trust Talon Fund
Schedule of Investments October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value
- ------ ------
<S> <C> <C>
COMMON STOCKS - 69.93%
Aerospace / Defense - 4.14%
14,500 General Dynamics Corp. ....................... $ 1,177,219
-----------
Cable Television - 0.16%
11,417 Tescorp, Inc.*(A)............................. 44,241
-----------
Consumer Cyclical - 4.93%
63,000 Circus Circus Enterprises, Inc.*.............. 1,401,750
-----------
Electrical - 2.46%
30,000 Berg Electronics Corp.*....................... 701,250
-----------
Finance - 12.22%
160,000 Danielson Holdings Corp. ..................... 1,260,000
52,000 Risk Capital Holdings, Inc. .................. 1,183,000
43,125 St. Paul Bancorp, Inc. ....................... 1,035,000
-----------
3,478,000
-----------
Pharmaceuticals - 15.36%
70,000 Mylan Laboratories, Inc. ..................... 1,535,625
55,000 North American Vaccine, Inc.*................. 1,381,875
67,544 Vitalink Pharmacy Services, Inc.*............. 1,456,418
-----------
4,373,918
-----------
Printing and Publishing - 4.70%
41,000 R.R. Donnelley & Sons Co. .................... 1,337,625
-----------
Real Estate - 4.30%
40,000 Equity Office Properties Trust, REIT.......... 1,222,500
-----------
Restaurants - 6.04%
28,000 Starbucks Corp.*.............................. 924,000
122,500 Unique Casual Restaurants..................... 796,250
-----------
1,720,250
-----------
Retail - 4.87%
55,000 Pep Boys-Manny Moe & Jack..................... 1,385,312
-----------
Technology - 10.75%
50,000 American Management Systems, Inc.*............ 1,081,250
22,000 Cerner Corp.*................................. 533,500
105,000 Robotic Vision Systems, Inc.*................. 1,443,750
-----------
3,058,500
-----------
Total Common Stocks........................... 19,900,565
-----------
(Cost $15,980,250)
PREFERRED STOCK - 1.27%
Cable Television
3,000 Tescorp, Inc. 8.0000% Conv. Pfd. (A).......... 363,000
-----------
Total Preferred Stock......................... 363,000
-----------
(Cost $300,000)
Par Value
- ---------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 26.26%
Federal Home Loan Bank - 3.52%
$1,000,000 5.8750%, 02/26/98............................. 1,002,210
---------
U.S. Treasury Bills (B) - 13.94%
1,000,000 4.9984%, 11/13/97............................. 998,382
1,000,000 4.8465%, 11/13/97............................. 998,382
1,000,000 5.0290%, 12/11/97............................. 994,488
1,000,000 5.1407%, 04/16/98............................. 976,900
-----------
3,968,152
-----------
U.S. Treasury Notes - 8.80%
1,000,000 5.2500%, 07/31/98............................. 998,380
1,500,000 5.8750%, 07/31/99............................. 1,505,355
-----------
2,503,735
-----------
Total U.S. Government
and Agency Obligations........................ 7,474,097
-----------
(Cost $7,466,281)
Shares
------
INVESTMENT COMPANY - 2.71%
769,994 Bankers Trust Institutional
Cash Management Fund.......................... 769,994
-----------
Total Investment Company...................... 769,994
-----------
(Cost $769,994)
PURCHASED PUT OPTIONS - 0.90%
Number of Exercise Expiration
Issuer Contracts Price Date
------ --------- -------- ----------
S & P 500 30 $9.60 11/22/97 142,500
S & P 500 20 $9.60 12/20/97 115,000
--------- -----------
50
Total Purchased Put Options............................... 257,500
-----------
(Cost $120,125)
Total Investments - 101.07%............................... 28,765,156
-----------
(Cost $24,636,650) **
Liabilities Net of Cash and Other Assets - (1.07%)........ (305,573)
-----------
Net Assets - 100.00%...................................... $28,459,583
===========
- ---------------------------------------
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is $24,792,119.
Gross unrealized appreciation $4,336,501
Gross unrealized (depreciation) (363,464)
----------
Net unrealized appreciation $3,973,037
==========
</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 October 31,
1997, these securities amounted to $407,241 or 1.43% of net assets.
(B) Annualized yield at time of purchase
REIT Real Estate Investment Trust
See accompanying Notes to Financial Statements.
16
<PAGE>
CT&T Funds
Chicago Trust Balanced Fund
Schedule of Investments October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value
- ------ ------
<S> <C> <C>
COMMON STOCKS - 53.40%
Aerospace - 1.02%
40,000 Boeing Co. ................................... $ 1,915,000
------------
Business Services - 1.01%
50,000 Paychex, Inc. ................................ 1,906,250
------------
Capital Goods - 3.11%
50,000 AlliedSignal Corp. ........................... 1,800,000
85,000 Federal Signal Corp. ......................... 2,055,937
25,000 Pitney Bowes, Inc. ........................... 1,982,812
------------
5,838,749
------------
Chemicals - 1.04%
45,000 Praxair, Inc. ................................ 1,960,312
------------
Consumer Durables - 2.89%
65,000 Illinois Tool Works, Inc. .................... 3,197,187
50,000 Johnson Controls, Inc. ....................... 2,243,750
------------
5,440,937
------------
Consumer Non-Durables - 6.35%
25,000 Cintas Corp. ................................. 1,806,250
50,000 Lancaster Colony Corp. ....................... 2,475,000
60,000 Mattel, Inc. ................................. 2,332,500
75,000 Newell Co. ................................... 2,878,125
36,000 Procter & Gamble Co. ......................... 2,448,000
------------
11,939,875
------------
Electrical - 1.37%
40,000 General Electric Co. ......................... 2,582,500
------------
Energy - 6.25%
30,000 Amoco Corp. .................................. 2,750,625
45,000 Exxon Corp. .................................. 2,764,687
52,000 Royal Dutch Petroleum Co., NY, ADR ........... 2,736,500
40,000 Schlumberger Ltd. ............................ 3,500,000
------------
11,751,812
------------
Finance - 10.12%
35,000 American International Group, Inc. ........... 3,572,188
30,000 Associates First Capital Corp., Class A....... 1,908,750
90,000 Federal Home Loan Mortgage Corp. ............. 3,408,750
50,000 First Data Corp. ............................. 1,453,125
40,000 Green Tree Financial Corp. ................... 1,685,000
120,000 MBNA Corp. ................................... 3,157,500
120,000 Norwest Corp. ................................ 3,847,500
------------
19,032,813
------------
Food and Beverage - 1.85%
45,000 Richfood Holdings, Inc., Class A.............. 1,085,625
60,000 Sysco Corp. .................................. 2,400,000
------------
3,485,625
------------
Health Care Services - 5.62%
25,000 Abbott Laboratories........................... 1,532,813
35,000 Cardinal Health, Inc. ........................ 2,598,750
90,000 Health Management
Associates, Inc., Class A*.................... 2,193,750
60,000 Pfizer, Inc. ................................. 4,245,000
------------
10,570,313
------------
Medical Supplies - 1.39%
60,000 Medtronic, Inc. .............................. 2,610,000
------------
Pharmaceuticals - 1.42%
30,000 Merck & Co, Inc. ............................. 2,677,500
------------
Retail - 1.50%
100,000 Walgreen Co. ................................. 2,812,500
------------
Technology - 7.60%
40,000 Cisco Systems, Inc.*.......................... 3,281,250
35,000 Computer Sciences Corp.*...................... 2,482,812
56,500 Electronic Data Systems Co. .................. 2,185,844
25,000 Microsoft Corp.*.............................. 3,250,000
52,500 Oracle Corp.*................................. 1,878,516
35,000 Sun Microsystems, Inc.*...................... 1,198,750
------------
14,277,172
------------
Telecommunications - 0.86%
30,000 Tellabs, Inc.*................................ 1,620,000
------------
Total Common Stocks........................... 100,421,358
------------
(Cost $68,550,142)
Par Value
- ---------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 18.09%
U.S. Treasury Notes - 7.86%
$2,000,000 9.0000%, 05/15/98............................. 2,037,280
1,500,000 5.5000%, 02/28/99............................. 1,497,795
1,500,000 8.0000%, 08/15/99............................. 1,559,055
2,000,000 7.1250%, 02/29/00............................. 2,061,360
2,000,000 5.2500%, 01/31/01............................. 1,973,480
2,000,000 7.8750%, 08/15/01............................. 2,141,680
1,500,000 5.7500%, 08/15/03............................. 1,494,015
2,000,000 5.8750%, 02/15/04............................. 2,005,480
------------
14,770,145
------------
</TABLE>
See accompanying Notes to Financial Statements.
17
<PAGE>
CT&T Funds
Chicago Trust Balanced Fund
Schedule of Investments - continued October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- ------
<S> <C>
U. S. Treasury Bonds - 1.69%
$150,0000 7.1250%, 02/15/23.................................... $ 1,667,520
150,0000 6.2500%, 08/15/23.................................... 1,503,645
-----------
3,171,165
-----------
Federal Home Loan Mortgage Corporation - 3.75%
600,000 5.5000%, 08/15/04.................................... 598,086
1,000,000 5.8500%, 02/21/06.................................... 986,980
800,000 6.0000%, 03/15/07.................................... 800,456
1,000,000 6.5000%, 09/15/07.................................... 1,014,760
570,206 7.5000%, 04/01/08.................................... 585,704
1,016,287 6.5000%, 06/01/09.................................... 1,016,602
469,525 5.1500%, 11/15/12.................................... 468,037
602,995 7.0000%, 07/01/13.................................... 606,196
692,800 7.0000%, 11/15/13, IO................................ 14,438
1,000,000 6.0000%, 12/15/23.................................... 954,150
-----------
7,045,409
-----------
Federal National Mortgage Association - 1.05%
458,555 6.0000%, 06/25/02, CMO............................... 456,987
800,365 6.9000%, 12/25/03, CMO............................... 816,101
993,359 7.0000%, 07/25/17, CMO, IO........................... 84,000
582,401 9.0000%, 05/01/25.................................... 619,710
-----------
1,976,798
-----------
Government National Mortgage Association - 3.74%
509,484 7.0000%, 06/15/08.................................... 518,558
634,229 8.0000%, 03/15/17.................................... 658,405
876,773 8.0000%, 06/15/17.................................... 910,196
1,653,925 7.0000%, 09/15/23.................................... 1,663,733
1,081,615 7.0000%, 10/15/23.................................... 1,088,029
784,192 7.0000%, 10/15/23.................................... 788,843
1,422,928 6.5000%, 03/15/26.................................... 1,407,802
-----------
7,035,566
-----------
Total U. S. Government
and Agency Obligations............................... 33,999,083
(Cost $33,455,048) -----------
CORPORATE NOTES AND BONDS - 17.72%
Cable Television - 0.44%
700,000 Continental Cablevision, Debenture
9.5000%, 08/01/13.................................... 824,250
-----------
Consumer Non-Durables - 0.68%
500,000 Anheuser Busch Co.
7.0000%, 12/01/25.................................... 495,625
750,000 Brown Group, Inc., Senior Notes
9.5000%, 10/15/06.................................... 776,250
-----------
1,271,875
-----------
Finance - 10.22%
1,000,000 Advanta Corp., MTN
7.0000%, 05/01/01.................................... 1,001,250
650,000 Associates Corp. NA
6.3750%, 08/15/98.................................... 653,361
750,000 Bankers Trust-NY, Subordinated Notes
8.1250%, 04/01/02.................................... 802,500
250,000 Chelsea GCA Realty Partnership, REIT
7.2500%, 10/21/07.................................... 252,500
1,500,000 Chrysler Financial Corp.
6.6250%, 08/15/00.................................... 1,522,500
1,000,000 Continental Corp. Notes
7.2500%, 03/01/03.................................... 1,032,500
750,000 DR Investment Corp.
7.4500%, 05/15/07 (A)................................ 793,125
945,000 Federal Realty Investment Trust
Covertible Subordinated Bonds, REIT
5.2500%, 10/28/03.................................... 907,200
1,000,000 First Chicago Bank
7.7500%, 12/01/26 (A)................................ 1,013,750
1,250,000 Goldman Sachs Group LP
6.2500%, 02/01/03 (A)................................ 1,240,625
1,000,000 International Bank for Reconstruction &
Development Notes
9.7700%, 05/27/98.................................... 1,023,750
1,000,000 John Deere Capital Corp., Debenture
8.6250%, 08/01/19.................................... 1,088,750
500,000 Leucadia National Corp.
Senior Subordinated Notes
7.8750%, 10/15/06.................................... 519,375
975,000 Leucadia National Corp.
Senior Subordinated Notes
8.2500%, 06/15/05.................................... 1,034,719
1,000,000 Merrill Lynch & Co., Inc.
7.0000%, 04/27/08.................................... 1,041,250
1,500,000 Metropolitan Life Insurance Co.
6.3000%, 11/01/03 (A)................................ 1,488,750
600,000 Olympic Financial Ltd.
11.5000%, 03/15/07................................... 622,500
1,000,000 Pacific Mutual Life Insurance Co.
7.9000%, 12/30/23 (A)................................ 1,070,000
1,000,000 Prudential Insurance Co. of America
8.3000%, 07/01/25 (A)................................ 1,095,000
1,000,000 Wells Fargo Capital
7.7300%, 12/01/26 (A)................................ 1,005,000
-----------
19,208,405
-----------
Food and Beverage - 0.54%
1,000,000 Nabisco, Inc.
6.7000%, 06/15/02.................................... 1,017,500
-----------
</TABLE>
See accompanying Notes to Financial Statements.
18
<PAGE>
CT&T Funds
Chicago Trust Balanced Fund
Schedule of Investments - continued October 31, 1997
================================================================================
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- ------
<S> <C>
Healthcare Services - 0.47%
$ 1,100,000 Hospital Corp. of America
Debenture
7.6485%, 06/01/00 (B).............................. $ 884,125
-----------
Printing and Publishing - 1.00%
750,000 News America Holdings
7.7500%, 02/01/24................................... 753,750
520,693 Time Warner, Inc., Series M
10.2500%, 07/01/16*(A).............................. 600,099
500,000 Valassis Inserts, Inc.
Senior Subordinated Notes
9.3750%, 03/15/99.................................. 516,875
-----------
1,870,724
-----------
Retail - 0.51%
1,000,000 K-mart Corp., Debenture
7.9500%, 02/01/23.................................. 960,000
-----------
Transportation - 0.25%
433,477 Delta Air Lines, Inc.
Equipment Trust, Series 1992A
8.5400%, 01/02/07.................................. 465,898
-----------
Utilities - 3.61%
1,000,000 CalEnergy Co, Inc.
7.6300%, 10/15/07.................................. 1,012,500
1,000,000 Commonwealth Edison Bond, First Mortgage
7.7500%, 07/15/23.................................. 1,023,750
1,000,000 Gulf States Utilities, First Mortgage, Series A
8.2500%, 04/01/04.................................. 1,076,250
1,000,000 Long Island Lighting Co., Debenture
9.0000%, 11/01/22.................................. 1,128,750
1,000,000 Niagara Mohawk Power, First Mortgage
8.0000%, 06/01/04.................................. 1,057,500
500,000 Philadelphia Electric Co., First Mortgage
5.6250%, 11/01/01.................................. 490,625
922,000 WorldCom, Inc. GA, Senior Note
8.8750%, 01/15/06................................ 995,760
-----------
6,785,135
-----------
Total Corporate Notes and Bonds.................... 33,287,912
(Cost $32,193,167) -----------
YANKEE BONDS - 1.42%
$ 1,750,000 Chilgener S.A. Yankee (Chile)
6.5000%, 01/15/06.................................. $ 1,732,500
416,667 Province of Mendoza
Collateral Oil Royalty Note
10.0000%, 07/25/02 (A)............................. 442,405
500,000 Skandinaviska Enskilda,
Subordinated Notes
6.6250%, 03/29/49 (A).............................. 503,443
-----------
Total Yankee Bonds................................. 2,678,348
(Cost $2,622,867) -----------
GOVERNMENT TRUST CERTIFICATES - 0.55%
142,858 Greece Trust, Class G-2
8.0000%, 05/15/98.................................. 143,572
837,831 Israel Collateral Trust, Class 1-C
9.2500%, 11/15/01.................................. 881,817
-----------
Total Government
Trust Certificates................................. 1,025,389
(Cost $1,061,200) -----------
ASSET-BACKED SECURITIES - 1.94%
1,000,000 BA Mortgage Securities, CMO
7.3500%, 07/25/26.................................. 998,750
1,000,000 Chemical Master Credit Card Trust I, Class A
5.5500%, 09/15/03.................................. 989,210
1,000,000 Citibank Credit Card Master Trust I, Class A
6.8390%, 02/10/04.................................. 1,023,190
600,000 Midland Realty Acceptance Corp. CMO
7.4750%, 08/25/28.................................. 632,625
-----------
Total Asset-Backed Securities...................... 3,643,775
(Cost $3,575,262) -----------
REPURCHASE AGREEMENT - 6.35%
11,933,000 First Chicago,
5.7000%, dated 10/31/97 to be repurchased
on 11/03/97 at $11,938,668
(Collateralized by U.S. Treasury Note
6.0000%, due 07/31/02;
Total Par $11,895,000)............................. 11,933,000
-----------
Total Repurchase Agreement......................... 11,933,000
(Cost $11,933,000) -----------
</TABLE>
See accompanying Notes to Financial Statements.
19
<PAGE>
<TABLE>
<CAPTION>
CT&T FUNDS
Chicago Trust Balanced Fund
Schedule of Investments - continued October 31, 1997
=================================================================================================
<S> <C>
Total Investments - 99.47%...................................................... $ 186,988,865
-----------------
(Cost $153,390,686) **
Net Other Assets and Liabilities - 0.53%........................................ 1,004,472
-----------------
Net Assets - 100.00% $187,993,337
- ----------------------------------------------------------------------- =================
</TABLE>
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is $153,390,686.
Gross unrealized appreciation $ 34,994,384
Gross unrealized (depreciation) (1,396,205)
---------------
Net unrealized appreciation $ 33,598,179
===============
IO Interest Only
ADR American Depositary Receipt
(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 October 31, 1997, these
securities amounted to $9,252,197 or 4.92% of net assets.
(B) Annualized yield at time of purchase
CMO Collateralized Mortgage Obligation
MTN Medium Term Note
REIT Real Eastate Investment Trust
Portfolio Composition (Moody's Ratings)
- ---------------------
Common Stock 53%
Repurchase Agreement 6%
U.S. Government Obligations 10%
U.S. Government Agency Obligations 8%
Government Trust Certificates 1%
Aaa 2%
AA 2%
A 6%
Baa 6%
Ba 5%
NR 1%
----
100%
====
See accompanying Notes to Financial Statements.
20
<PAGE>
CT&T Funds
Montag & Caldwell Balanced Fund
Schedule of Investments October 31, 1997
================================================================================
<TABLE>
<CAPTION>
Market
Shares Value
- ------ ------
<S> <C> <C>
COMMON STOCKS - 58.33%
Business Services - 1.13%
24,300 Manpower, Inc. ............................... $ 932,512
-----------
Consumer Durables - 1.19%
35,400 Harley Davidson, Inc. ........................ 982,350
-----------
Consumer-Nondurables - 8.84%
51,100 CUC International, Inc.*...................... 1,507,450
21,000 Gillette Co. ................................. 1,870,312
22,000 Interpublic Group of Companies., Inc. ........ 1,045,000
27,000 Mattel, Inc. ................................. 1,049,625
27,000 Procter & Gamble Co. ......................... 1,836,000
-----------
7,308,387
-----------
Electrical - 1.66%
21,300 General Electric Co. ......................... 1,375,181
-----------
Entertainment and Leisure - 1.69%
17,000 Walt Disney Co. .............................. 1,398,250
-----------
Finance - 4.14%
19,000 American Express Co. ......................... 1,482,000
14,300 American International Group, Inc. ........... 1,459,494
16,500 First Data Corp. ............................. 479,530
-----------
3,421,024
-----------
Food and Beverage - 3.65%
30,000 Coca-Cola Co. ................................ 1,695,000
14,400 Pioneer Hi-Bred International, Inc. .......... 1,319,400
-----------
3,014,400
-----------
Health Care Services - 6.12%
22,690 Eli Lilly & Co. .............................. 1,517,394
31,000 Johnson & Johnson............................. 1,778,625
25,000 Pfizer, Inc. ................................. 1,768,750
-----------
5,064,769
-----------
Lodging - 1.69%
20,000 Marriott International, Inc. ................. 1,395,000
-----------
Medical Supplies - 1.86%
35,400 Medtronic, Inc. .............................. 1,539,900
-----------
Pharmaceuticals - 3.63%
19,000 Bristol-Myers Squibb Co. ..................... 1,667,250
15,000 Merck & Co., Inc. ............................ 1,338,750
-----------
3,006,000
-----------
Restaurants - 1.82%
22,100 Cracker Barrell Old Country Store, Inc. ...... 651,950
19,000 McDonald's Corp. ............................. 851,437
-----------
1,503,387
-----------
Retail - 3.70%
26,500 Gap, Inc. .................................... 1,409,468
29,800 Home Depot, Inc. ............................. 1,657,625
-----------
3,067,093
-----------
Telecommunications - 1.18%
22,100 Ericsson (LM) Telefonaktiebolaget, ADR
Class B, Series 10............................ 977,925
-----------
Technology - 16.03%
22,100 Adaptec, Inc.*................................ 1,070,469
25,400 Cisco Systems, Inc.*.......................... 2,083,594
22,350 Compaq Computer Corp.*........................ 1,424,812
28,000 Electronic Arts, Inc.*........................ 948,500
19,800 Intel Corp. .................................. 1,524,600
14,000 Microsoft Corp.*.............................. 1,820,000
43,000 Oracle Corp.*................................. 1,538,594
14,800 Seagate Technology, Inc.*..................... 401,450
24,400 Solectron Corp.*.............................. 957,700
36,000 3Com Corp.*................................... 1,491,750
-----------
13,261,469
-----------
Total Common Stocks........................... 48,247,647
-----------
(Cost $37,414,304)
Par Value
- ---------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 25.66%
U.S. Treasury Notes - 17.89%
$1,500,000 5.750%, 08/15/03.............................. 1,494,015
2,000,000 5.875%, 02/15/04.............................. 2,005,480
1,500,000 7.250%, 05/15/04.............................. 1,612,620
1,500,000 7.875%, 11/15/04.............................. 1,671,195
2,000,000 6.500%, 08/15/05.............................. 2,073,780
2,500,000 6.500%, 10/15/06.............................. 2,597,725
3,000,000 7.250%, 05/15/16.............................. 3,347,640
-----------
14,802,455
-----------
</TABLE>
See accompanying Notes to Financial Statements.
21
<PAGE>
- --------------------------------------------------------------------------------
CT&T FUNDS
Montag & Caldwell Balanced Fund
Schedule of Investments - continued October 31, 1997
================================================================================
<TABLE>
<CAPTION>
Market
Par Value Value
- ---------- ------
<S> <C> <C> <C>
Federal Home Loan Bank - 0.61%
$ 500,000 6.940%, 02/12/04................................ $ 506,500
------------
Federal Home Loan
Mortgage Corporation- 4.04%
100,000 7.730%, 08/10/04, Debenture, Series A........... 103,593
750,000 6.400%, 12/13/06, Debenture..................... 768,638
750,000 6.700%, 01/05/07, Series B...................... 782,775
600,000 7.500%, 03/15/07, CMO, Class J.................. 606,312
175,000 6.000%, 04/15/08, CMO, Class K.................. 174,689
500,000 6.500%, 07/15/20, CMO, Class F.................. 503,810
400,000 6.500%, 11/15/20, CMO. Class H.................. 404,924
------------
3,344,741
------------
Federal National
Mortgage Association - 3.10%
500,000 7.070%, 03/08/11, MTN........................... 505,960
2,000,000 7.250%, 01/17/21, CMO, REMIC.................... 2,054,940
------------
2,560,900
------------
Government National
Mortgage Association - 0.02%
8,447 8.500%, 06/15/01................................ 8,809
2,975 9.000%, 09/15/08................................ 3,174
------------
11,983
------------
Total U.S. Government
and Agency Obligations.......................... 21,226,579
------------
(Cost $20,702,195)
CORPORATE NOTES AND BONDS - 9.33%
Finance - 7.73%
1,500,000 American Express Co., Senior Notes
6.750%, 06/23/04................................ 1,537,500
55,000 American General Finance, Senior Notes
7.200%, 07/08/99................................ 56,100
1,000,000 Citicorp, Subordinated Notes
7.125%, 05/15/06................................ 1,036,250
500,000 First National Bank Commerce, Senior Notes, MTN
6.500%, 01/14/00................................ 505,625
1,000,000 First Union National, Subordinated Notes, MTN
7.125%, 10/15/06................................ 1,036,250
750,000 General Motors Acceptance Corp.
7.125%, 05/01/03................................ 777,188
500,000 Household Finance Corp.
7.250%, 05/15/06................................ 525,000
100,000 National Re Corp., Senior Notes
8.850%, 01/15/05................................ 112,500
500,000 Salomon, Inc.
7.300%, 05/15/02................................ 519,375
285,000 Salomon, Inc., Senior Notes
7.125%, 08/01/99................................ 290,344
------------
6,396,132
------------
Retail - 1.60%
500,000 Penney (J.C.) & Co., Debenture
9.750%, 06/15/21................................ 558,750
750,000 Sears Roebuck Acceptance Corp.
6.700%, 11/15/06................................ 765,938
------------
1,324,688
------------
Total Corporate Notes and Bonds................. 7,720,820
------------
(Cost $7,564,432)
ASSET-BACKED SECURITIES - 2.93%
445,000 AT&T Universal Card Master Trust
Series 1995-2, Class A
5.950%, 10/17/02................................ 445,352
1,150,000 Chase Auto Owner Trust
Series 1997-B, Class A3
6.350%, 02/15/01................................ 1,161,661
300,000 Chemical Master Credit Card Trust
6.230%, 06/15/03................................ 302,508
500,000 Citibank Credit Card Master Trust
Series 1997-2, Class A
6.550%, 02/16/04................................ 509,460
------------
Total Asset-Backed Securities................... 2,418,981
------------
(Cost $2,389,033)
Shares
- ------
INVESTMENT COMPANY - 3.59%
2,970,204 Bankers Trust Institutional
Cash Management Fund............................ 2,970,204
------------
Total Investment Company........................ 2,970,204
------------
(Cost $2,970,204)
Total Investments - 99.84%...................................... 82,584,231
------------
(Cost $71,040,168)**
Net Other Assets and Liabilities - 0.16%........................ 134,822
------------
Net Assets - 100.00%............................................ $ 82,719,053
============
</TABLE>
- ---------------------------------------
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is $71,072,517
<TABLE>
<S> <C> <C>
Gross unrealized appreciation $11,988,370
Gross unrealized (depreciation) (476,656)
-----------
Net unrealized appreciation $11,511,714
===========
</TABLE>
ADR American Depositary Receipt
CMO Collateralized Mortgage Obligation
MTN Medium Term Note
REMIC Real Estate Mortgage Investment Conduit
<TABLE>
Portfolio Composition (Moody's Ratings)
- ---------------------
<S> <C>
Common Stocks 58%
U.S. Government Obligations 19%
U.S. Government Agency Obligations 8%
Aaa 1%
A 10%
Investment Company 4%
----
100%
====
</TABLE>
See accompanying Notes to Financial Statements.
22
<PAGE>
CT&T Funds
Chicago Trust Bond Fund
Schedule of Investments October 31, 1997
================================================================================
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- ------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 46.84%
U.S. Treasury Notes - 19.69%
<S> <C> <C> <C>
$ 1,250,000 7.375%, 11/15/97................................... $ 1,250,588
2,000,000 5.625%, 01/31/98................................... 2,000,600
2,500,000 5.125%, 11/30/98................................... 2,488,400
2,500,000 5.500%, 02/28/99................................... 2,496,325
2,500,000 7.125%, 02/29/00................................... 2,576,700
2,500,000 5.750%, 10/31/00................................... 2,499,950
2,500,000 7.875%, 08/15/01................................... 2,677,100
2,500,000 6.375%, 08/15/02................................... 2,562,125
2,500,000 5.750%, 08/15/03................................... 2,490,025
2,500,000 7.250%, 05/15/04................................... 2,687,700
------------
23,729,513
------------
U.S. Treasury Bonds - 5.33%
2,000,000 7.500%, 05/15/02................................... 2,137,020
2,500,000 7.125%, 02/15/23................................... 2,779,200
1,500,000 6.250%, 08/15/23................................... 1,503,645
------------
6,419,865
------------
Federal Home Loan
Mortgage Corporation - 12.03%
2,500,000 5.850%, 02/21/06, Debenture........................ 2,467,450
1,123,421 7.000%, 10/15/06, CMO.............................. 1,133,441
1,500,000 6.000%, 03/15/07, CMO.............................. 1,500,855
1,000,000 6.500%, 09/15/07, CMO.............................. 1,014,760
500,000 5.750%, 01/15/08, CMO.............................. 494,135
570,206 7.500%, 04/01/08, Debenture........................ 585,704
1,500,000 6.000%, 03/15/09, CMO.............................. 1,439,415
1,355,049 6.500%, 06/01/09, CMO.............................. 1,355,469
1,693,227 6.500%, 01/01/11................................... 1,693,752
1,480,425 6.500%, 11/01/11................................... 1,480,884
1,400,000 6.000%, 12/15/23, CMO.............................. 1,335,810
------------
14,501,675
------------
Federal National
Mortgage Association - 4.48%
382,130 6.000%, 06/25/02, CMO.............................. 380,823
1,067,154 6.900%, 12/25/03, CMO.............................. 1,088,134
390,121 7.000%, 07/01/08................................... 395,360
1,449,716 7.000%, 05/01/12................................... 1,469,185
931,842 9.000%, 05/01/25................................... 991,535
1,093,948 6.500%, 02/01/26................................... 1,075,482
------------
5,400,519
------------
Government National
Mortgage Association - 5.31%
876,773 8.000%, 06/15/17................................... 910,196
1,372,337 7.000%, 10/15/23................................... 1,380,475
1,442,154 7.000%, 10/15/23................................... 1,450,706
1,422,928 6.500%, 03/15/26................................... 1,407,802
1,248,893 7.000%, 08/20/27................................... 1,250,837
------------
6,400,016
------------
Total U.S. Government
and Agency Obligations............................. 56,451,588
------------
(Cost $55,587,648)
CORPORATE NOTES AND BONDS - 40.49%
Cable Television - 1.47%
1,500,000 Continental Cablevision, Debenture
9.500%, 08/01/13................................... 1,766,250
------------
Consumer Non-Durables - 1.68%
1,000,000 Anheuser Busch Co.
7.000%, 12/01/25................................... 991,250
1,000,000 Brown Group, Inc. Senior Note
9.500%, 10/15/06................................... 1,035,000
------------
2,026,250
------------
See accompanying Notes to Financial Statements
</TABLE>
23
<PAGE>
CT&T Funds
Chicago Trust Bond Fund
Schedule of Investments - continued October 31, 1997
================================================================================
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- ------
<S> <C>
Finance - 22.34%
$ 1,250,000 Advanta Corp., MTN
7.000%, 05/01/01................................... $ 1,251,563
1,250,000 Associates Corp. NA
6.375%, 08/15/98................................... 1,256,463
2,000,000 Bankers Trust-NY, Subordinated Notes
7.500%, 01/15/02................................... 2,090,000
650,000 Chelsea GCA Realty Partnership, REIT
7.250%, 10/21/07................................... 656,500
1,750,000 Chrysler Financial Corp.
6.625%, 08/15/00................................... 1,776,250
1,500,000 Continental Corp. Notes
7.250%, 03/01/03................................... 1,548,750
1,000,000 Federal Realty Investment Trust
Convertible Subordinated Bonds, REIT
5.250%, 10/28/03................................... 960,000
2,000,000 First Chicago Bank
7.750%, 12/01/26 (A)............................... 2,027,500
1,000,000 Goldman Sachs Group LP
6.200%, 12/15/00 (A)............................... 997,500
500,000 Goldman Sachs Group LP
6.250%, 02/01/03 (A)............................... 496,250
1,275,000 John Deere Capital Corp., Debenture
8.625%, 08/01/19................................... 1,388,156
750,000 Leucadia National Corp.
Senior Subordinated Notes
7.875%, 10/15/06................................... 779,063
1,000,000 Leucadia National Corp.
Senior Subordinated Notes
8.250%, 06/15/05................................... 1,061,250
2,000,000 Merrill Lynch & Co., Inc.
7.000%, 04/27/08................................... 2,082,500
2,000,000 Metropolitan Life Insurance Co.
6.300%, 11/01/03 (A)............................... 1,985,000
1,000,000 Olympic Financial Ltd.
11.500%, 03/15/07.................................. 1,037,500
1,250,000 Pacific Mutual Life Insurance Co.
7.900%, 12/30/23 (A)............................... 1,337,500
2,000,000 Prudential Insurance Co. of America
8.300%, 07/01/25 (A)............................... 2,190,000
2,000,000 Wells Fargo Capital
7.730%, 12/01/26 (A)............................... 2,010,000
-----------
26,931,745
-----------
Food and Beverage - 0.42%
$ 500,000 Nabisco, Inc.
6.700%, 06/15/02................................... $ 508,750
-----------
Manufacturing - 0.87%
1,000,000 Figgie International, Inc., Senior Notes
9.875%, 10/01/99................................... 1,045,000
-----------
Printing and Publishing - 2.46%
1,250,000 News America Holdings
7.750%, 01/20/24................................... 1,256,250
809,967 Time Warner, Inc., Series M
10.250%, 07/01/16.................................. 933,487
750,000 Valassis Inserts, Inc.
Senior Subordinated Notes
9.375%, 03/15/99................................... 775,313
-----------
2,965,050
-----------
Retail - 1.19%
1,500,000 K-mart Corp., Debenture
7.950%, 02/01/23................................... 1,440,000
-----------
Transportation - 0.58%
209,478 Delta Air Lines, Inc.
9.375%, 09/11/07................................... 234,353
433,477 Delta Air Lines, Inc.
Equipment Trust, Series 1992A
8.540%, 01/02/07................................... 465,898
-----------
700,251
-----------
</TABLE>
See accompanying Notes to Financial Statements.
24
<PAGE>
CT&T Funds
Chicago Trust Bond Fund
Schedule of Investments - continued October 31, 1997
================================================================================
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- ------
Utilities - 9.48%
<C> <S> <C>
$ 1,675,000 CalEnergy Co., Inc.
7.630%, 10/15/07.................................. $ 1,695,938
1,000,000 Commonwealth Edison Co., First Mortgage
7.750%, 07/15/23.................................. 1,023,750
2,000,000 Gulf States Utilities, First Mortgage, Series A
8.250%, 04/01/04.................................. 2,152,500
1,250,000 Long Island Lighting Co., Debenture
9.000%, 11/01/22.................................. 1,410,938
1,500,000 Niagra Mohawk Power, First Mortgage
8.000%, 06/01/04.................................. 1,586,250
2,000,000 Philadelphia Electric Co., First Mortgage
5.625%, 11/01/01.................................. 1,962,500
1,475,000 WorldCom, Inc. GA, Senior Note
8.875%, 01/15/06.................................. 1,593,000
------------
11,424,876
------------
Total Corporate Notes and Bonds................... 48,808,172
------------
(Cost $47,005,037)
YANKEE BONDS - 3.13%
2,000,000 Chilgener S.A. Yankee (Chile)
6.500%, 01/15/06................................... 1,980,000
593,750 Province of Mendoza
Collateral Oil Royalty Note
10.000%, 07/25/02 (A).............................. 630,428
1,150,000 Skandinaviska Enskilda, Subordinated Notes
6.625%, 03/29/49 (A)............................... 1,157,918
------------
Total Yankee Bonds................................. 3,768,346
------------
(Cost $3,673,871)
GOVERNMENT TRUST CERTIFICATE - 0.53%
607,427 Israel Collateral Trust, Class 1-C
9.250%, 11/15/01................................... 639,317
------------
Total Government Trust Certificate................. 639,317
------------
(Cost $664,635)
ASSET-BACKED SECURITIES - 4.90%
1,750,000 BA Mortgage Securities, CMO
7.350%, 07/25/26................................... 1,747,813
2,500,000 Chemical Master Credit Card Trust I, Class A
5.550%, 09/15/03................................... 2,473,025
750,000 Citibank Credit Card Master Trust I, Class A
6.839%, 02/10/04................................... 767,393
875,000 Midland Realty Acceptance Corp., CMO
7.475%, 08/25/28................................... 922,578
------------
Total Asset-Backed Securities...................... 5,910,809
------------
(Cost $5,814,813)
REPURCHASE AGREEMENT - 2.72%
$3,281,000 First Chicago,
5.700%, dated 10/31/97 to be repurchased
on 11/03/97 at $3,282,558
(Collateralized by U.S. Treasury Note
6.000%, due 07/31/02;
Total Par $3,270,000).............................. $ 3,281,000
------------
Total Repurchase Agreement......................... 3,281,000
------------
(Cost $3,281,000)
Total Investments -98.61%......................................... 118,859,232
------------
(Cost $116,027,004)*
Net Other Assets and Liabilities - 1.39%.......................... 1,672,945
------------
Net Assets - 100.00%.............................................. $120,532,177
============
</TABLE>
- ---------------------------------------------
* Aggregage cost for Federal income tax purposes is $116,027,004.
Gross unrealized appreciation $ 2,932,363
Gross unrealized (depreciation) (100,135)
------------
Net unrealized appreciation $ 2,832,228
============
(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 October 31, 1997,
these securities amounted to $12,832,096 or 10.65% of net assets.
CMO Collateralized Mortgage Obligation
MTN Medium Term Note
REIT Real Estate Investment Trust
Portfolio Composition (Mood's Ratings)
- ---------------------
Repurchase Agreement 3%
U.S. Government Obligations 25%
U.S. Government Agency Obligations 22%
Government Trust Certificates 1%
Aaa 3%
AA 3%
A 14%
Baa 13%
Ba 13%
B 1%
NR 2%
----
100%
====
See accompanying Notes to Financial Statements.
25
<PAGE>
CT&T Funds
Chicago Trust Municipal Bond Fund
Schedule of Investments October 31, 1997
================================================================================
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- -----
<S> <C>
MUNICIPAL SECURITIES - 97.45%
Arizona - 8.53%
$ 350,000 Mohave County, IDA
6.000%, 07/01/00...................................... $ 366,569
450,000 Salt River Project Electric System Revenue
Refunding, Series A
5.500%, 01/01/05...................................... 477,842
200,000 Tucson, Arizona Water Revenue
5.400%, 07/01/05...................................... 211,152
----------
1,055,563
----------
California - 2.07%
250,000 California State
5.250%, 10/01/10...................................... 256,250
----------
Florida - 2.21%
265,000 Dade County, Florida State School District, G.O.
5.000%, 07/15/02
Insured: MBIA......................................... 273,949
----------
Georgia - 4.14%
250,000 State of Georgia, Series A, G.O.
6.100%, 03/01/05...................................... 276,045
200,000 State of Georgia, Series D, G.O.
6.700%, 08/01/09...................................... 235,980
----------
512,025
----------
Illinois - 8.21%
250,000 Chicago, Illinois Metropolitan Water
Reclamation, G.O.
6.600%, 01/01/02...................................... 271,903
475,000 Cook County, Illinois Series B, G.O.
4.700%, 11/15/01
Insured: MBIA......................................... 484,614
250,000 State of Illinois, G.O.
5.150%, 09/01/02
Insured: FGIC......................................... 259,390
----------
1,015,907
----------
Maryland - 2.03%
250,000 University of Maryland Revenue, Series B
Auxiliary Facilities and Tuition Revenue
5.400%, 04/01/98...................................... 251,718
----------
Michigan - 5.92%
250,000 Lanse Creuse Public Schools
5.000%, 05/01/03...................................... 258,368
200,000 Rochester Community School District
4.550%, 05/01/04...................................... 201,006
260,000 Utica Community Schools
5.375%, 05/01/04...................................... 273,296
----------
732,670
----------
Minnesota - 2.01%
245,000 St. Paul Housing Finance Board Revenue
5.050%, 11/01/07...................................... 249,236
----------
Nevada - 3.12%
350,000 Clark County, Nevada School District, G.O.
6.400%, 06/15/06...................................... 386,547
Insured: FGIC ----------
New Jersey - 7.24%
295,000 Camden County
Municipal Utilities Authority Revenue
6.000%, 07/15/04...................................... 321,237
350,000 State of New Jersey Transportation
Trust Fund Revenue, Series A,
Escrowed to Maturity
5.200%, 12/15/00
Insured: AMBAC........................................ 362,289
200,000 State of New Jersey, Series D, G.O.
5.500%, 02/15/04...................................... 212,296
----------
895,822
----------
New York - 6.27%
250,000 Municipal Assistance Corporation
4.500%, 07/01/01...................................... 252,850
250,000 New York City Transitional Finance
Authority Revenue
5.500%, 08/15/08...................................... 266,103
250,000 New York State Dormitory Authority
Revenue, Series C
5.100%, 05/15/03...................................... 257,463
----------
776,416
----------
Ohio - 1.67%
200,000 Ohio State Public Facilities Commission
(Higher Education), Series II-A
5.200%, 05/01/01
Insured: AMBAC........................................ 206,974
----------
Oklahoma - 2.93%
350,000 Tulsa, Oklahoma Metropolitan Utilities
Authority Revenue
5.500%, 07/01/00...................................... 362,506
----------
Oregon - 2.22%
250,000 Portland, Oregon Series A, G.O.
7.000%, 06/01/01...................................... 274,445
----------
</TABLE>
See accompanying Notes to Financial Statements.
26
<PAGE>
<TABLE>
<CAPTION>
CT&T Funds
Chicago Trust Municipal Bond Fund
Schedule of Investments-continued October 31, 1997
================================================================================
Market
Par Value Value
- --------- ------
<S> <C> <C>
Pennsylvania - 3.74%
$ 250,000 Commonwealth of Pennsylvania,
Green County, G.O.
5.100%, 06/15/03
Insured: MBIA..................................... $ 259,503
200,000 Commonwealth of Pennsylvania, G.O.
5.250%, 05/15/99
Insured: FGIC..................................... 204,052
------------
$ 463,555
------------
Puerto Rico - 3.59%
400,000 Commonwealth of Puerto Rico,
Series A, G.O.
6.500%, 07/01/03
Insured: MBIA..................................... 444,660
------------
Rhode Island - 2.38%
275,000 State of Rhode Island, Series A, G.O.
6.000%, 06/15/02
Insured: FGIC..................................... 294,751
------------
Texas - 10.30%
375,000 Arlington Independent School District,
Refunding, G.O.
5.400%, 02/15/99.................................. 382,050
210,000 Tarrant County Health Faciltities
Development Corp.
Health System Revenue, Series A
5.500%, 02/15/05.................................. 222,243
200,000 Texas State Public Finance Authority
Series A, G.O.
5.600%, 10/01/02.................................. 212,314
450,000 Texas State Water Development Board, G.O.
Escrowed to Maturity
5.000% 08/01/99................................... 458,537
------------
1,275,144
------------
Utah - 8.35%
300,000 Intermountain Power Agency
Power Supply Revenue
6.250%, 07/01/07.................................. 336,762
475,000 Jordan School District, Series A, G.O.
5.250%, 06/15/00.................................. 488,903
200,000 Utah State Building Ownership Authority
Lease Revenue, Series A
5.125%, 05/15/03.................................. 207,552
------------
1,033,217
------------
Virginia - 4.23%
250,000 Henrico County,Virginia
Industrial Redevelopment
Authority Revenue
5.300%, 12/01/11.................................. 258,808
250,000 Virigina State Public School
Authority Revenue
5.500%, 08/01/03.................................. 264,600
------------
523,408
------------
Washington - 4.12%
475,000 King County, Washington, Series A, G.O.
5.800%, 01/01/04.................................. 509,741
------------
Wisconsin - 2.17%
250,000 State of Wisconsin, Series A, G.O.
5.750%, 05/01/04.................................. 268,463
------------
Total Municipal Securities........................ $ 12,062,967
(Cost $11,743,478)................................ ------------
Shares
------
INVESTMENT COMPANIES - 0.51%
4,954 Goldman Sachs Tax Exempt Fund..................... 4,954
58,695 Provident Munifund................................ 58,695
------------
Total Investment Companies................. 63,649
(Cost $63,649) ------------
Total Investments - 97.96%......................................... 12,126,616
(Cost $11,807,127)* ------------
Net Other Assets and Liabilities - 2.04%........................... 252,592
------------
Net Assets - 100.00%............................................... $ 12,379,208
------------
- -------------------------------
* Aggregage cost for Federal income tax purposes is $11,807,127.
Gross unrealized appreciation $ 319,637
Gross unrealized (depreciation) (148)
-----------
Net unrealized appreciation $ 319,489
===========
AMBAC American Municipal Bond Assurance Corp.
FGIC Federal Guaranty Insurance Corp.
G.O. General Obligation
IDA Industrial Development Authority
MBIA Municipal Bond Insurance Association
Portfolio Composition (Moody's Ratings)
- ---------------------
Investment Companies 1%
Aaa 56%
Aa 33%
A 8%
NR 2%
----
100%
====
</TABLE>
See accompanying Notes to Financial Statements.
27
<PAGE>
<TABLE>
<CAPTION>
CT&T Funds
Chicago Trust Money Market Fund
Schedule of Investments October 31, 1997
================================================================================
Amortized
Par Value Cost
- --------- ---------
<S> <C> <C>
COMMERCIAL PAPER - 77.33%
$ 4,500,000 Beneficial Corp.
5.5520%, 11/03/97.................................. $ 4,500,000
4,500,000 Associates Corp. of North America
5.5530%, 11/04/97.................................. 4,500,000
4,500,000 Household Finance Corp.
5.5580%, 11/05/97.................................. 4,500,000
4,545,000 Chrysler Financial Corp.
5.5540%, 11/06/97(A)............................... 4,541,528
4,300,000 AVCO Financial Services, Inc.
5.5700%, 11/10/97.................................. 4,300,000
600,000 General Electric Capital Corp.
5.5710%, 11/12/97.................................. 600,000
3,900,000 Heller Financial, Inc.
5.6070%, 11/12/97.................................. 3,900,000
3,500,000 AVCO Financial Services, Inc.
5.5760%, 11/13/97.................................. 3,500,000
1,000,000 Prudential Funding Corp.
5.5100%, 11/13/97.................................. 1,000,000
4,500,000 Sears Roebuck Acceptance Corp.
5.5700%, 11/14/97.................................. 4,500,000
4,500,000 American Express Credit Corp.
5.5800%, 11/17/97.................................. 4,500,000
420,000 Prudential Funding Corp.
5.5000%, 11/18/97.................................. 420,000
3,090,000 Chrysler Financial Corp.
5.5200%, 11/18/97.................................. 3,081,945
1,034,124 Bank of America
5.5300%, 11/18/97.................................. 1,031,423
4,500,000 General Motors Acceptance Corp.
5.5860%, 11/19/97.................................. 4,500,000
3,500,000 Norwest Financial, Inc.
5.6040%, 11/20/97.................................. 3,500,000
1,000,000 American Express Credit Corp.
5.5830%, 11/20/97.................................. 1,000,000
3,500,000 General Motors Acceptance Corp.
5.5829%, 11/21/97.................................. 3,500,000
4,560,000 Chrysler Financial Corp.
5.5850%, 11/21/97(A)............................... 4,546,042
4,500,000 Commercial Credit Co.
5.5570%, 11/24/97.................................. 4,500,000
4,500,000 Heller Financial, Inc.
5.6370%, 11/25/97.................................. 4,500,000
4,500,000 AVCO Financial Services, Inc.
5.5910%, 11/26/97.................................. 4,500,000
2,500,000 First National Bank of Chicago
5.5000%, 12/01/97(A)............................... 2,488,542
2,000,000 American Express Credit Corp.
5.5568%, 12/01/97.................................. 2,000,000
4,500,000 IBM Credit Corp.,
5.5420%, 12/02/97.................................. 4,500,000
4,500,000 Beneficial Corp.
5.5585%, 12/03/97.................................. 4,500,000
4,500,000 Household Finance Corp.
5.5288%, 12/04/97.................................. 4,500,000
4,500,000 Prudential Funding Corp.
5.5381%, 12/05/97.................................. 4,500,000
4,500,000 Commercial Credit Co.
5.5296%, 12/08/97.................................. 4,500,000
4,550,000 Southern California Edison
5.5650%, 12/09/97(A)............................... 4,523,585
4,500,000 CIT Group Holdings
5.5279%, 12/10/97.................................. 4,500,000
4,500,000 CIT Group Holdings
5.5271%, 12/11/97.................................. 4,500,000
3,000,000 American General Finance
5.5271%, 12/12/97.................................. 3,000,000
1,500,000 General Electric Capital Corp.
5.5440%, 12/12/97.................................. 1,500,000
2,122,117 Bank of America
5.5100%, 12/15/97(A)............................... 2,107,825
3,300,000 Associates Corp. of North America
5.5760%, 12/15/97.................................. 3,300,000
1,419,364 Bank of America
5.5100%, 12/16/97(A)............................... 1,409,588
3,000,000 Sears Roebuck Acceptance Corp.
5.5697%, 12/16/97.................................. 3,000,000
4,500,000 Prudential Funding Corp.
5.5576%, 12/17/97.................................. 4,500,000
1,200,000 Prudential Funding Corp.
5.5680%, 12/18/97.................................. 1,200,000
400,000 General Electric Capital Corp.
5.5500%, 12/19/97.................................. 400,000
4,100,000 General Motors Acceptance Corp.
5.5722%, 12/19/97.................................. 4,100,000
4,500,000 American General Finance
5.5407%, 12/22/97.................................. 4,500,000
2,000,000 CIT Group Holdings
5.5706%, 12/23/97.................................. 2,000,000
2,500,000 Beneficial Corp.
5.5808%, 12/23/97.................................. 2,500,000
4,500,000 Sears Roebuck Acceptance Corp.
5.5732%, 12/24/97.................................. 4,500,000
4,100,000 American Express Credit Corp.
5.5713%, 12/31/97.................................. 4,100,000
400,000 General Electric Capital Corp.
5.5603%, 12/31/97.................................. 400,000
1,000,000 Commercial Credit Co.
5.6376%, 01/05/98.................................. 1,000,000
3,700,000 Associates Corp. of America
5.6478%, 01/05/98.................................. 3,700,000
4,100,000 General Electric Capital Corp.
5.5807%, 01/09/98.................................. 4,100,000
</TABLE>
See accompanying Notes to Financial Statements.
28
<PAGE>
<TABLE>
<CAPTION>
CT&T Funds
Chicago Trust Money Market Fund
Schedule of Investments-continued October 31, 1997
================================================================================
Amortized
Par Value Cost
- --------- ----
<S> <C> <C>
$ 400,000 CIT Group Holdings
5.6113%, 01/09/98....................... $ 400,000
4,500,000 John Deere Capital Corp.
5.6184%, 01/15/98....................... 4,500,000
4,500,000 General Electric Capital Corp.
5.6741%, 01/15/98....................... 4,500,000
4,500,000 Norwest Financial, Inc.
5.6647%, 01/22/98....................... 4,500,000
3,300,000 Heller Financial, Inc.
5.7067%, 01/22/98....................... 3,300,000
-------------
Total Commercial Paper.................. 184,450,478
(Cost $184,450,478) -------------
CERTIFICATES OF DEPOSIT - 5.16%
4,500,000 Old Kent Bank
5.5000%, 11/07/97....................... 4,500,000
3,300,000 Old Kent Bank
5.5600%, 12/18/97....................... 3,300,000
4,500,000 Old Kent Bank
5.5700%, 12/26/97....................... 4,500,000
-------------
Total Certificates of Deposit........... 12,300,000
(Cost $12,300,000) -------------
GIC WITHIN FUNDING AGREEMENT - 4.19%
10,000,000 Allstate Life Funding Agreement GIC
5.7575%, 12/01/97....................... 10,000,000
-------------
Total GIC Within
Funding Agreement....................... 10,000,000
(Cost $10,000,000) -------------
TIME DEPOSITS - 3.77%
$ 4,500,000 Canadian Imperial Bank of Commerce
5.5400%, 12/30/97....................... $ 4,500,000
4,500,000 Canadian Imperial Bank of Commerce
5.5600%, 12/29/97....................... 4,500,000
-------------
Total Time Deposits..................... 9,000,000
(Cost $9,000,000) -------------
REPURCHASE AGREEMENT - 9.52%
22,718,000 First Chicago,
5.6600%, dated 10/31/97 to be repurchased
on 11/03/97 at $22,728,715
(Collateralized by U.S. Treasury Note
8.500%, due 11/15/00;
Total Par $20,785,000).................. 22,718,000
------------
Total Repurchase Agreement.............. 22,718,000
(Cost $22,718,000) ------------
Total Investments - 99.97%...................................... 238,468,478**
------------
Net Other Assets and Liabilities -0.03%......................... 82,996
------------
Net Assets - 100.00%............................................ $238,551,474
</TABLE> ============
- ---------------------------
(A) Annualized yield at time of purchase
** At October 31, 1997 cost is idenitical for book and Federal income tax
purposes.
See accompanying Notes to Financial Statements.
29
<PAGE>
CT&T Funds
Statement of Assets and Liabilities OCTOBER 31, 1997
================================================================================
<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.......... $606,867,247 $182,870,419 $24,636,650 $141,457,686
Repurchase agreements........ -- 10,017,000 -- 11,933,000
Net unrealized appreciation.. 147,140,836 77,036,253 4,128,506 33,598,179
------------ ------------ ----------- ------------
Total investments at value... 754,008,083 269,923,672 28,765,156 186,988,865
Cash.......................... 234 1,399 231 --
Receivables:
Dividends and interest....... 502,350 37,066 88,732 1,193,984
Fund shares sold............. 3,895,259 471,113 5,073 263,527
Investments sold............. -- 4,672,930 -- --
Due from Advisor, net........ -- -- -- --
Deferred organization costs... 6,670 5,574 6,277 4,036
Other assets.................. 10,220 31,068 6,158 1,244
------------ ------------ ----------- ------------
Total assets................ 758,422,816 275,142,822 28,871,627 188,451,656
------------ ------------ ----------- ------------
LIABILITIES:
Payables:
Bank overdraft............... -- -- -- 24,283
Dividend distribution........ -- -- -- --
Investments purchased........ 8,311,553 -- 359,975 --
Fund shares redeemed......... 791,859 78,981 -- 90,857
Due to Advisor, net.......... 517,213 167,934 12,747 113,036
Distribution fees............ 130,197 221,436 17,630 180,966
Accrued expenses.............. 253,828 66,564 21,692 49,177
------------ ------------ ----------- ------------
Total liabilities........... 10,004,650 534,915 412,044 458,319
------------ ------------ ----------- ------------
NET ASSETS..................... $748,418,166 $274,607,907 $28,459,583 $187,993,337
============ ============ =========== ============
NET ASSETS consist of:
Capital paid-in............... $593,853,104 $178,423,017 $19,796,414 $142,370,306
Accumulated undistributed
(distribution in excess of)
net investment income (loss). -- -- 37,253 624,636
Accumulated net realized gain
(loss) on investments........ 7,424,226 19,148,637 4,497,410 11,400,216
Net unrealized appreciation
on investments............... 147,140,836 77,036,253 4,128,506 33,598,179
------------ ------------ ----------- ------------
TOTAL NET ASSETS............... $748,418,166 $274,607,907 $28,459,583 $187,993,337
============ ============ =========== ============
Shares of beneficial interest
outstanding................... 32,959,072 13,917,656 1,617,134 16,999,608
NET ASSET VALUE
Offering and redemption price
per share (Net Assets/Shares
outstanding)................. (A) $ 19.73 $ 17.60 $ 11.06
============ ============ =========== ============
</TABLE>
- ------------------------
(A) Montag & Caldwell Growth Fund Class N (Retail):
Net Asset Value, offering price and redemption price per share (Based on net
assets of $479,557,025 and 21,142,111 shares issued and outstanding) $22.68
Montag & Caldwell Growth Fund Class I (Institutional):
Net Asset Value, offering price and redemption price per share (Based on net
assets of $268,861,141 and 11,816,961 shares issued and outstanding) $22.75
See accompanying Notes to Financial Statements.
30
<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>
$ 71,040,168 $ 112,746,004 $ 11,807,127 $ 215,750,478
-- 3,281,000 -- 22,718,000
11,544,063 2,832,228 319,489 --
- ----------------- --------------- -------------- -------------
82,584,231 118,859,232 12,126,616 238,468,478
-- 7,486 417 --
589,290 1,755,024 202,811 1,054,958
206,223 117,111 100,098 168,650
355 -- -- --
-- -- 105 --
6,670 5,574 5,574 5,574
1,356 1,152 26,647 12,392
- ----------------- --------------- -------------- -------------
83,388,125 120,745,579 12,462,268 239,710,052
- ----------------- --------------- -------------- -------------
397 -- -- 652
1,345 -- -- 1,029,742
577,478 -- -- --
3,677 3,552 -- 13,230
52,295 38,587 -- 77,330
2,808 142,791 43,249 --
31,072 28,472 39,811 37,624
- ----------------- --------------- -------------- -------------
669,072 213,402 83,060 1,158,578
- ----------------- --------------- -------------- -------------
$ 82,719,053 $ 120,532,177 $ 12,379,208 $ 238,551,474
================= =============== =============== =============
$ 68,927,242 $ 117,272,641 $ 12,123,373 $ 238,551,474
185,563 452,597 27,456 --
2,062,185 (25,289) (91,110) --
11,544,063 2,832,228 319,489 --
- ----------------- --------------- --------------- -------------
$ 82,719,053 $ 120,532,177 $ 12,379,208 $ 238,551,474
================= =============== =============== =============
5,167,798 11,894,302 1,215,334 238,551,474
$ 16.01 $ 10.13 $ 10.19 $ 1.00
================= =============== ============== =============
</TABLE>
31
<PAGE>
CT&T Funds
Statement of Operations
For the Year Ended October 31, 1997
- --------------------------------------------------------------------------------
<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................................................ $ 3,062,695 $ 2,616,520 $ 93,313 $ 1,115,889
Interest................................................. 1,035,399 1,054,079 366,033 5,603,622
------------ ----------- ---------- -----------
Total Investment Income................................ 4,098,094 3,670,599 459,346 6,719,511
------------ ----------- ---------- -----------
EXPENSES:
Investment advisory fees................................. 3,800,124 1,734,260 182,742 1,228,508
Distribution expenses.................................... 836,514 619,130 57,092 438,574
Transfer agent fees...................................... 167,566 98,959 53,658 33,312
Administration fees...................................... 242,224 121,926 11,675 85,382
Accounting fees.......................................... 66,037 49,168 18,045 47,067
Registration expenses.................................... 209,681 14,322 10,503 12,499
Custodian fees........................................... 47,481 32,124 13,857 30,396
Professional fees........................................ 48,246 26,954 11,515 22,630
Amortization of organization costs....................... 3,332 4,997 3,332 1,401
Report to shareholder expense............................ 33,756 12,666 1,194 8,709
Trustees fees............................................ 2,703 2,703 2,703 2,703
Other expenses........................................... 8,943 64,777 15,911 66,970
------------ ----------- ---------- -----------
Total expenses......................................... 5,466,607 2,781,986 382,227 1,978,151
------------ ----------- ---------- -----------
Expenses reimbursed.................................... (41,428) (129,857) (85,596) (102,203)
------------ ----------- ---------- -----------
Net expenses........................................... 5,425,179 2,652,129 296,631 1,875,948
------------ ----------- ---------- -----------
NET INVESTMENT INCOME (LOSS).............................. (1,327,085) 1,018,470 162,715 4,843,563
------------ ----------- ---------- -----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments (including
a net realized (loss) on option transactions of
($169,276) in the Talon Fund)............................ 8,570,687 19,177,699 4,497,850 11,378,927
Net change in unrealized appreciation
on investments (including a net
unrealized appreciation on option transactions of
$137,375 in the Talon Fund).............................. 114,427,550 33,416,450 1,618,377 15,462,457
------------ ----------- ---------- -----------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS...................................... 122,998,237 52,594,149 6,116,227 26,841,384
------------ ----------- ---------- -----------
NET INCREASE IN NET
ASSETS FROM OPERATIONS................................... $121,671,152 $53,612,619 $6,278,942 $31,684,947
============ =========== ========== ===========
</TABLE>
See accompanying Notes to Financial Statements.
32
<PAGE>
Chicago Trust Chicago Trust
Montag & Caldwell Chicago Trust Municipal Bond Money Market
Balanced Fund Bond Fund Fund Fund
----------------- ------------- -------------- -------------
<TABLE>
<CAPTION>
<S> <C> <C> <C>
$ 219,468 $ -- $ -- $ --
1,399,409 7,043,490 534,204 13,958,204
----------------- ------------- -------------- -------------
1,618,877 7,043,490 534,204 13,958,204
----------------- ------------- -------------- -------------
400,868 550,514 69,127 1,004,607
131,861 247,590 28,790 --
47,730 42,264 23,435 54,844
27,230 49,334 5,686 121,794
29,879 42,584 17,743 52,303
22,362 18,235 6,333 10,426
17,386 23,135 7,512 39,465
14,288 17,723 11,566 27,534
3,332 4,997 4,997 4,997
3,041 5,111 559 12,374
2,703 2,703 2,703 2,703
10,466 17,298 10,533 68,479
----------------- ------------- -------------- -------------
711,146 1,021,488 188,984 1,399,526
----------------- ------------- -------------- -------------
(44,973) (221,539) (85,359) (142,332)
----------------- ------------- -------------- -------------
666,173 799,949 103,625 1,257,194
----------------- ------------- -------------- -------------
952,704 6,243,541 430,579 12,701,010
----------------- ------------- -------------- -------------
2,102,297 (36,729) 6,147 --
7,581,239 2,754,254 140,720 --
----------------- ------------- -------------- -------------
9,683,536 2,717,525 146,867 --
----------------- ------------- -------------- -------------
$ 10,636,240 $ 8,961,066 $ 577,446 $ 12,701,010
================= ============= ============== =============
</TABLE>
33
<PAGE>
<TABLE>
<CAPTION>
CT&T FUNDS
Statement of Changes in Net Assets
====================================================================================================================================
Montag & Caldwell Growth Fund Chicago Trust Growth & Income Fund
----------------------------- ----------------------------------
Year Ended Year Ended
October 31, 1997 October 31, 1996* October 31, 1997 October 31, 1996
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
NET ASSETS at beginning of period................. $ 218,649,895 $ 40,355,049 $205,133,317 $172,295,705
------------- ------------ ------------ ------------
Increase in net asset
from operations:
Net investment income (loss).................... (1,327,085) (28,035) 1,018,470 1,451,728
Net realized gain on investments sold
and purchased options transactions............. 8,570,687 2,171,050 19,177,699 4,305,113
Net change in unrealized appreciation
on investments and assets
and liabilities in purchased options........... 114,427,550 26,825,183 33,416,450 39,311,048
------------- ------------ ------------ ------------
Net increase in net assets
from operations................................ 121,671,152 28,968,198 53,612,619 45,067,889
------------- ------------ ------------ ------------
Distributions to shareowners from:
Net investment income:
Retail Class................................. -- (28,975) (1,152,026) (1,444,903)
Institutional Class.......................... (26,630) (45,883) -- --
Net realized gain on investments:
Retail Class................................. (1,466,613) (24,401) (4,334,020) (976,557)
Institutional Class.......................... (412,803) -- -- --
------------- ------------ ------------ ------------
Total distributions.......................... (1,906,046) (99,259) (5,486,046) (2,421,460)
------------- ------------ ------------ ------------
Capital share transactions:
Net proceeds from sales of shares:
Retail Class................................. 339,687,434 118,083,887 50,803,893 43,023,005
Institutional Class.......................... 228,296,239 51,795,147 -- --
Issued to shareowners in reinvestment
of distributions:
Retail Class................................. 1,404,998 53,046 5,404,887 2,391,580
Institutional Class.......................... 396,515 45,883 -- --
Cost of shares repurchased:
Retail Class................................. (115,055,486) (16,878,640) (34,860,763) (55,223,402)
Institutional Class.......................... (44,726,535) (3,673,416) -- --
------------- ------------ ------------ ------------
Net increase (decrease) from capital
share transactions........................ 410,003,165 149,425,907 21,348,017 (9,808,817)
------------- ------------ ------------ ------------
Total increase in net assets............... 529,768,271 178,294,846 69,474,590 32,837,612
------------- ------------ ------------ ------------
NET ASSETS at end of period (including line A).... $ 748,418,166 $218,649,895 $274,607,907 $205,133,317
============= ============ ============ ============
(A) Undistributed (distribution in excess of)
net investment income (loss).................. $ -- $ (73,703) $ -- $ 133,556
------------- ------------ ------------ ------------
OTHER INFORMATION:
Share transactions:
Retail Class:
Sold......................................... 16,692,907 7,779,869 2,806,114 2,994,709
Issued to shareowners in reinvestment
of distributions............................ 79,785 3,770 326,567 170,324
Repurchased.................................. (5,364,133) (1,115,729) (1,902,988) (3,829,976)
Institutional Class:
Sold......................................... 10,833,116 3,302,194 -- --
Issued to shareowners in reinvestment
of distributions............................ 22,316 2,812 -- --
Repurchased.................................. (2,106,489) (236,988) -- --
------------- ------------ ------------ ------------
Net increase (decrease) in shares
outstanding.............................. 20,157,502 9,735,928 1,229,693 (664,943)
============= ============ ============ ============
</TABLE>
- --------------------------------------------------------------------------------
* Montag & Caldwell Growth Fund Institutional Class commenced investment
operations on June 28, 1996.
See accompanying Notes to Financial Statements.
34
<PAGE>
<TABLE>
<CAPTION>
CHICAGO TRUST TALON FUND CHICAGO TRUST BALANCED FUND
---------------------------------- ----------------------------------
YEAR ENDED YEAR ENDED
OCTOBER 31, 1997 OCTOBER 31, 1996 OCTOBER 31, 1997 OCTOBER 31, 1996
---------------- ---------------- ---------------- ----------------
$ 17,417,675 $ 10,537,854 $ 156,703,443 $ 152,820,466
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C>
162,715 42,177 4,843,563 4,547,650
4,497,850 1,453,661 11,378,927 2,227,691
1,618,377 1,649,993 15,462,457 17,768,218
---------------- ---------------- ---------------- ----------------
6,278,942 3,145,831 31,684,947 24,543,559
---------------- ---------------- ---------------- ----------------
(134,407) (35,795) (4,764,936) (4,421,473)
-- -- -- --
(1,458,660) (634,240) (2,253,139) (7,294)
-- -- -- --
---------------- ---------------- ---------------- ----------------
(1,593,067) (670,035) (7,018,075) (4,428,767)
---------------- ---------------- ---------------- ----------------
6,345,104 4,424,049 28,395,564 26,178,729
-- -- -- --
1,577,255 662,762 7,017,789 4,428,767
-- -- -- --
(1,566,326) (682,786) (28,790,331) (46,839,311)
-- -- -- --
---------------- ---------------- ---------------- ----------------
6,356,033 4,404,025 6,623,022 (16,231,815)
---------------- ---------------- ---------------- ----------------
11,041,908 6,879,821 31,289,894 3,882,977
---------------- ---------------- ---------------- ----------------
$ 28,459,583 $ 17,417,675 $ 187,993,337 $ 156,703,443
================ ================ ================ ================
$ 37,253 $ 8,945 $ 624,636 $ 567,503
---------------- ---------------- ---------------- ----------------
397,032 336,046 2,757,711 2,932,312
107,919 55,106 699,716 495,015
(97,875) (54,225) (2,774,505) (5,245,177)
-- -- -- --
-- -- -- --
-- -- -- --
---------------- ---------------- ---------------- ----------------
407,076 336,927 682,922 (1,817,850)
================ ================ ================ ================
</TABLE>
35
<PAGE>
<TABLE>
<CAPTION>
CT&T Funds
Statement of Changes in Net Assets (continued) OCTOBER 31, 1997
====================================================================================================================================
Montag & Caldwell Balanced Fund Chicago Trust Bond Fund
----------------------------------- -----------------------------------
Year Ended Year Ended
October 31, 1997 October 31, 1996 October 31, 1997 October 31, 1996
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
NET ASSETS at beginning of period.................... $ 31,472,671 $ 21,908,174 $ 79,210,728 $ 70,490,335
---------------- ---------------- ---------------- ---------------
Increase in net assets
from operations:
Net investment income.............................. 952,704 562,623 6,243,541 4,684,008
Net realized gain (loss) on investments sold....... 2,102,297 2,720,967 (36,729) (21,824)
Net change in unrealized appreciation
(depreciation) of investments..................... 7,581,239 1,750,771 2,754,254 (427,461)
---------------- ---------------- ---------------- ---------------
Net increase in net assets
from operations................................... 10,636,240 5,034,361 8,961,066 4,234,723
---------------- ---------------- ---------------- ---------------
Distributions to shareowners from:
Net investment income.............................. (837,377) (544,785) (6,043,358) (4,576,113)
Net realized gain on investments................... (2,702,590) -- (16,748) (26,301)
---------------- ---------------- ---------------- ---------------
Total distributions............................. (3,539,967) (544,785) (6,060,106) (4,602,414)
---------------- ---------------- ---------------- ---------------
Capital share transactions:
Net proceeds from sales of shares.................. 58,631,470 17,019,049 46,817,358 18,394,655
Issued to shareowners in
reinvestment of distributions..................... 3,490,623 544,624 4,797,389 4,131,546
Cost of shares repurchased......................... (17,971,984) (12,488,752) (13,194,258) (13,438,117)
---------------- ---------------- ---------------- ---------------
Net increase (decrease) from
capital share transactions..................... 44,150,109 5,074,921 38,420,489 9,088,084
---------------- ---------------- ---------------- ---------------
Total increase (decrease) in net assets......... 51,246,382 9,564,497 41,321,449 8,720,393
---------------- ---------------- ---------------- ---------------
NET ASSETS at end of period (including line A)....... $ 82,719,053 $ 31,472,671 $ 120,532,177 $ 79,210,728
================ ================ ================ ===============
(A) Undistributed (distribution in excess of)
net investment income........................... $ 185,563 $ 70,787 $ 452,597 $ 258,643
---------------- ---------------- ---------------- ---------------
OTHER INFORMATION:
Share transactions:
Sold............................................... 3,939,135 1,269,601 4,734,805 1,866,993
Issued to shareowners in reinvestment
of distributions.................................. 255,726 41,681 485,679 422,144
Repurchased........................................ (1,229,194) (916,526) (1,334,065) (1,373,273)
---------------- ---------------- ---------------- ---------------
Net increase (decrease) in shares outstanding... 2,965,667 394,756 3,886,419 915,864
================ ================ ================ ===============
</TABLE>
See accompanying Notes to Financial Statements.
36
<PAGE>
CHICAGO TRUST MUNICIPAL BOND FUND CHICAGO TRUST MONEY MARKET FUND
- ------------------------------------ -----------------------------------
YEAR ENDED YEAR ENDED
OCTOBER 31, 1997 OCTOBER 31, 1996 OCTOBER 31, 1997 OCTOBER 31, 1996
- ---------------- ---------------- ---------------- ----------------
<TABLE>
<CAPTION>
<S> <C> <C> <C>
$ 11,186,162 $ 11,679,498 $ 226,535,616 $ 206,075,314
- ------------- ------------- -------------- -------------
430,579 421,107 12,701,010 10,298,196
6,147 30,220 -- --
140,720 (54,373) -- --
- ------------- ------------- -------------- -------------
577,446 396,954 12,701,010 10,298,196
- ------------- ------------- -------------- -------------
(426,993) (419,021) (12,701,010) (10,298,196)
-- -- -- --
- ------------- ------------- -------------- -------------
(426,993) (419,021) (12,701,010) (10,298,196)
- ------------- ------------- -------------- -------------
1,375,126 394,557 569,551,234 494,444,216
21,748 22,047 434,377 331,446
(354,281) (887,873) (557,969,753) (474,315,360)
- ------------- ------------- -------------- -------------
1,042,593 (471,269) 12,015,858 20,460,302
------------- ------------- -------------- -------------
1,193,046 (493,336) 12,015,858 20,460,302
- ------------- ------------- -------------- -------------
$ 12,379,208 $ 11,186,162 $ 238,551,474 $ 226,535,616
============= ============= ============== =============
$ 27,456 $ 23,870 $ -- $ --
- ------------- ------------- -------------- -------------
135,835 39,198 569,551,234 494,444,216
2,159 2,203 434,377 331,446
(35,025) (87,989) (557,969,753) (474,315,360)
- ------------- ------------- -------------- -------------
102,969 (46,588) 12,015,858 20,460,302
============= ============= ============== =============
</TABLE>
37
<PAGE>
<TABLE>
<CAPTION>
CT&T FUNDS
Financial Highlights October 31, 1997
=====================================================================================================================
Montag & Caldwell Growth Fund
-----------------------------------------------------------
Retail Class Institutional Class
----------------------------------- ----------------------
Year Year Period Year Period
Ended Ended Ended Ended Ended
10/31/97 10/31/96 10/31/95/(a)/ 10/31/97 10/31/96/(b)/
-------- -------- ------------- -------- -------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................. $ 17.08 $ 13.16 $ 10.00 $ 17.08 $ 15.59
Income from Investment Operations:
Net investment income (loss)....................... (0.05) -- 0.02 -- 0.02
Net realized and unrealized gain
on investments.................................... 5.79 3.93 3.16 5.81 1.49
-------- -------- ------- -------- --------
Total from investment operations.................. 5.74 3.93 3.18 5.81 1.51
-------- -------- ------- -------- --------
Less Distributions:
Distributions from and in excess
of net investment income.......................... -- (0.01) (0.02) -- (0.02)
Distributions from net realized
gain on investments............................... (0.14) -- -- (0.14) --
-------- -------- ------- -------- --------
Total distributions............................. (0.14) (0.01) (0.02) (0.14) (0.02)
-------- -------- ------- -------- --------
Net increase in net asset value...................... 5.60 3.92 3.16 5.67 1.49
-------- -------- ------- -------- --------
Net Asset Value, End of Period....................... $ 22.68 $ 17.08 $ 13.16 $ 22.75 $ 17.08
======== ======== ======= ======== ========
Total Return/1/...................................... 33.82% 29.91% 31.87% 34.26% 9.67%
Ratios/Supplemental Data:
Net Assets, End of Period (in 000's)................. $479,557 $166,243 $40,355 $268,861 $ 52,407
Ratios of expenses to average net assets:
Before reimbursement of expenses
by Advisor/2/...................................... 1.24% 1.32% 1.87% 0.93% 0.98%
After reimbursement of expenses
by Advisor/2/...................................... 1.23% 1.28% 1.30% 0.93% 0.98%
Ratios of net investment income to average net assets:
Before reimbursement of expenses
by Advisor/2/...................................... (0.38)% (0.10)% (0.36)% (0.07)% 0.17%
After reimbursement of expenses
by Advisor/2/...................................... (0.37)% (0.06)% 0.20% (0.06)% 0.17%
Portfolio Turnover................................... 18.65% 26.36% 34.46% 18.65% 26.36%
Average Commission Rate Paid......................... $ 0.0592 $ 0.0639 N/R $ 0.0592 $ 0.0639
</TABLE>
- -----------------------------------------------------------------------------
/1/ Not Annualized.
/2/ Annualized.
(a) Montag & Caldwell Growth Fund Retail Class commenced investment operations
on November 2, 1994.
(b) Montag & Caldwell Growth Fund Institutional Class commenced investment
operations on June 28, 1996.
N/R: Not required.
See accompanying Notes to Financial Statements.
38
<PAGE>
CT&T Funds
Financial Highlights October 31, 1997
================================================================================
<TABLE>
<CAPTION>
Chicago Trust Growth & Income Fund
-------------------------------------------------------------------
Year Year Year Period
Ended Ended Ended Ended
10/31/97 10/31/96 10/31/95 10/31/94/(a)/
-------- -------- -------- -------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.......................... $ 16.17 $ 12.90 $ 10.11 $ 10.00
-------- -------- -------- -----------
Income from Investment Operations:
Net investment income....................................... 0.08 0.11 0.09 0.07
Net realized and unrealized gain on investments............. 3.91 3.34 2.79 0.10
-------- -------- -------- -----------
Total from investment operations......................... 3.99 3.45 2.88 0.17
-------- -------- -------- -----------
Less Distributions:
Distributions from and in excess of net investment income... (0.09) (0.11) (0.09) (0.06)
Distributions from net realized gain on investments......... (0.34) (0.07) -- --
-------- -------- -------- -----------
Total distributions...................................... (0.43) (0.18) (0.09) (0.06)
-------- -------- -------- -----------
Net increase in net asset value............................... 3.56 3.27 2.79 0.11
-------- -------- -------- -----------
Net Asset Value, End of Period................................ $ 19.73 $ 16.17 $ 12.90 $ 10.11
======== ======== ======== ===========
Total Return/1/............................................... 25.16% 26.98% 28.66% 1.73%
Ratios/supplemental Data:
Net Assets, End of Period (in 000's).......................... $274,608 $205,133 $172,296 $ 12,282
Ratios of expenses to average net assets:
Before reimbursement of expenses by Advisor/2/............... 1.12% 1.15% 1.50% 2.21%
After reimbursement of expenses by Advisor/2/................ 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/............... 0.36% 0.62% 0.33% (0.15)%
After reimbursement of expenses by Advisor/2/................ 0.41% 0.77% 0.74% 0.86%
Portfolio Turnover............................................ 30.58% 25.48% 9.00% 37.01%
Average Commission Rate Paid.................................. $ 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.
39
<PAGE>
CT&T Funds
Financial Highlights October 31, 1997
================================================================================
<TABLE>
<CAPTION>
Chicago Trust Talon Fund
-------------------------------------------------------------------
Year Year Year Period
Ended Ended Ended Ended
10/31/97 10/31/96 10/31/95 10/31/94/(a)/
-------- -------- -------- -------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.......................... $ 14.39 $ 12.07 $ 10.25 $ 10.00
-------- -------- -------- -----------
Income from Investment Operations:
Net investment income....................................... 0.11 0.04 0.09 0.02
Net realized and unrealized gain on investments
and options................................................. 4.38 3.01 1.84 0.23
-------- -------- -------- -----------
Total from investment operations......................... 4.49 3.05 1.93 0.25
-------- -------- -------- -----------
Less Distributions:
Distributions from and in excess of net investment income... (0.09) (0.03) (0.11) --
Distributions from net realized gain on investments......... (1.19) (0.70) -- --
-------- -------- -------- -----------
Total distributions...................................... (1.28) (0.73) (0.11) --
-------- -------- -------- -----------
Net increase in net asset value............................... 3.21 2.32 1.82 0.25
-------- -------- -------- -----------
Net Asset Value, End of Period................................ $ 17.60 $ 14.39 $ 12.07 $ 10.25
======== ======== ======== ===========
Total Return/1/............................................... 33.47% 26.51% 18.92% 2.50%
Ratios/Supplemental Data:
Net Assets, End of Period (in 000's).......................... $ 28,460 $ 17,418 $ 10,538 $ 4,355
Ratios of expenses to average net assets:
Before reimbursement of expenses by Advisor/2/............... 1.67% 1.98% 3.04% 7.82%
After reimbursement of expenses by Advisor/2/................ 1.30% 1.30% 1.30% 1.30%
Ratios of net investment income to average net assets:
Before reimbursement of expenses by Advisor/2/............... 0.34% (0.38)% (0.97)% (4.13)%
After reimbursement of expenses by Advisor/2/................ 0.71% 0.30% 0.77% 2.39%
Portfolio Turnover............................................ 112.72% 126.83% 229.43% 33.66%
Average Commission Rate Paid.................................. $ 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.
40
<PAGE>
CT&T FUNDS
Financial Highlights October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Chicago Trust Balanced Fund
---------------------------------------
Year Year Period
Ended Ended Ended
10/31/97 10/31/96 10/31/95/(a)/
-------- -------- -------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period......... $ 9.60 $ 8.43 $ 8.34
-------- -------- --------
Income from Investment Operations:
Net investment income.................... 0.28 0.27 0.03
Net realized and unrealized gain on
investments............................. 1.60 1.16 0.06
-------- -------- --------
Total from investment operations....... 1.88 1.43 0.09
-------- -------- --------
Less Distributions:
Distributions from and in excess of net
investment income....................... (0.28) (0.26) --
Distributions from net realized gain on
investments............................. (0.14) -- --
-------- -------- --------
Total distributions.................... (0.42) (0.26) --
-------- -------- --------
Net increase in net asset value.............. 1.46 1.17 0.09
-------- -------- --------
Net Asset Value, End of Period............... $ 11.06 $ 9.60 $ 8.43
======== ======== ========
Total return/1/.............................. 20.10% 17.21% 1.08%
Ratios/Supplemental Data:
Net Assets, End of Period (in 000's)......... $187,993 $156,703 $152,820
Ratios of expenses to average net assets:
Before reimbursement of expenses by
Advisor/2/................................ 1.13% 1.17% 1.19%
After reimbursement of expenses by
Advisor/2/................................ 1.07%/3/ 1.00% 1.00%
Ratios of net investment income to average
net assets:
Before reimbursement of expenses by
Advisor/2/................................ 2.70% 2.79% 2.56%
After reimbursement of expenses by
Advisor/2/................................ 2.76% 2.96% 2.73%
Portfolio Turnover........................... 34.69% 34.29% 0.72%
Average Commission Rate Paid................. $ 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.
41
<PAGE>
CT&T Funds
Financial Highlights October 31, 1997
================================================================================
<TABLE>
<CAPTION>
Montag & Caldwell Balanced Fund
----------------------------------------
Year Year Period
Ended Ended Ended
10/31/97 10/31/96 10/31/95/(a)/
-------- -------- -------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period........................... $ 14.29 $ 12.12 $ 10.00
------- ------- -------
Income from Investment Operations:
Net investment income....................................... 0.25 0.27 0.26
Net realized and unrealized gain on investments............. 2.93 2.17 2.09
------- ------- -------
Total from investment operations...................... 3.18 2.44 2.35
------- ------- -------
Less Distributions:
Distributions from and in excess of net investment income... (0.25) (0.27) (0.23)
Distributions from net realized gain on investments......... (1.21) -- --
------- ------- -------
Total distributions................................... (1.46) (0.27) (0.23)
------- ------- -------
Net increase in net asset value................................ 1.72 2.17 2.12
------- ------- -------
Net Asset Value, End of Period................................. $ 16.01 $ 14.29 $ 12.12
======= ======= =======
Total Return/1/................................................ 24.26% 20.37% 23.75%
Ratios/Supplemental Data:
Net Assets, End of Period (in 000's)........................... $82,719 $31,473 $21,908
Ratios of expenses to average net assets:
Before reimbursement of expenses by Advisor/2/............... 1.33% 1.58% 2.50%
After reimbursement of expenses by Advisor/2/................ 1.25% 1.25% 1.25%
Ratios of net investment income to average net assets:
Before reimbursement of expenses by Advisor/2/............... 1.70% 1.83% 1.38%
After reimbursement of expenses by Advisor/2/................ 1.78% 2.16% 2.63%
Portfolio Turnover............................................. 28.13% 43.58% 27.33%
Average Commission Rate Paid................................... $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.
42
<PAGE>
CT&T Funds
Financial Highlights October 31, 1997
================================================================================
<TABLE>
<CAPTION>
Chicago Trust Bond Fund
--------------------------------------------------
Year Year Year Period
Ended Ended Ended Ended
10/31/97 10/31/96 10/31/95 10/31/94/(a)/
-------- -------- -------- -------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period....................... $ 9.89 $ 9.94 $ 9.21 $ 10.00
-------- ------- ------- -------
Income from Investment Operations:
Net investment income.................................. 0.61 0.60 0.60 0.50
Net realized and unrealized gain (loss) on investments. 0.23 (0.05) 0.73 (0.82)
-------- ------- ------- -------
Total from investment operations.................. 0.84 0.55 1.33 (0.32)
-------- ------- ------- -------
Less distributions from and in excess
of net investment income................................ (0.60) (0.60) (0.60) (0.47)
-------- ------- ------- -------
Net increase (decrease) in net asset value................. 0.24 (0.05) 0.73 (0.79)
-------- ------- ------- -------
Net Asset Value, End of Period............................. $ 10.13 $ 9.89 $ 9.94 $ 9.21
======== ======= ======= =======
Total Return/1/............................................ 8.84% 5.76% 14.89% (3.23)%
Ratios/Supplemental Data:
Net Assets, End of Period (in 000's)....................... $120,532 $79,211 $70,490 $12,546
Ratios of expenses to average net assets:
Before reimbursement of expenses by Advisor/2/........... 1.02% 1.10% 1.54% 2.02%
After reimbursement of expenses by Advisor/2/............ 0.80% 0.80% 0.80% 0.80%
Ratios of net investment income to average net assets:
Before reimbursement of expenses by Advisor/2/........... 6.02% 5.89% 5.78% 4.83%
After reimbursement of expenses by Advisor/2/............ 6.24% 6.19% 6.52% 6.05%
Portfolio Turnover......................................... 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.
43
<PAGE>
CT&T FUNDS
Financial Highlights October 31, 1997
===============================================================================
<TABLE>
<CAPTION>
Chicago Trust Municipal Bond Fund
-----------------------------------------------------
Year Year Year Period
Ended Ended Ended Ended
10/31/97 10/31/96 10/31/95 10/31/94/(a)/
--------- -------- -------- -------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period............................. $ 10.06 $ 10.08 $ 9.56 $ 10.00
--------- -------- -------- -------------
Income from Investment Operations:
Net investment income.......................................... 0.38 0.38 0.35 0.27
Net realized and unrealized gain (loss) on investments......... 0.12 (0.02) 0.52 (0.46)
--------- -------- -------- -------------
Total from investment operations............................ 0.50 0.36 0.87 (0.19)
--------- -------- -------- -------------
Less distributions from and in excess
of net investment income..................................... (0.37) (0.38) (0.35) (0.25)
--------- -------- -------- -------------
Net increase (decrease) in net asset value....................... 0.13 (0.02) 0.52 (0.44)
--------- -------- -------- -------------
Net Asset Value, End of Period................................... $ 10.19 $ 10.06 $ 10.08 $ 9.56
========= ======== ======== =============
Total Return/1/.................................................. 5.13% 3.59% 9.29% (1.92)%
Ratios/Supplemental Data:
Net Assets, End of Period (in 000's)............................. $ 12,379 $ 11,186 $ 11,679 $ 10,462
Ratios of expenses to average net assets:
Before reimbursement of expenses by Advisor/2/.................. 1.64% 1.53% 2.16% 2.09%
After reimbursement of expenses by Advisor/2/................... 0.90% 0.90% 0.90% 0.90%
Ratios of net investment income to average net assets:
Before reimbursement of expenses by Advisor/2/.................. 3.00% 3.11% 2.37% 1.90%
After reimbursement of expenses by Advisor/2/................... 3.74% 3.74% 3.63% 3.09%
Portfolio Turnover............................................... 16.19% 27.47% 42.81% 14.85%
</TABLE>
- -----------------------------------------------------------------
/1/ Not Annualized.
/2/ Annualized.
(a) Chicago Trust Municipal Bond Fund commenced investment operations
on December 13, 1993.
See accompanying Notes to Financial Statements.
44
<PAGE>
CT&T FUNDS
Financial Highlights October 31, 1997
===============================================================================
<TABLE>
<CAPTION>
Chicago Trust Money Market Fund
--------------------------------------------------
Year Year Year Period
Ended Ended Ended Ended
10/31/97 10/31/96 10/31/95 10/31/94/(a)/
-------- -------- -------- -------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------------
Income from Investment Operations:
Net investment income..................................... 0.05 0.05 0.05 0.03
-------- -------- -------- -------------
Less Distributions from net investment income.............. (0.05) (0.05) (0.05) (0.03)
-------- -------- -------- -------------
Net Asset Value, End of Period.............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== =============
Total Return/1/............................................. 5.15% 5.14% 5.56% 3.20%
Ratios/Supplemental Data:
Net Assets, End of Period (in 000's)........................ $238,551 $226,536 $206,075 $ 122,929
Ratios of expenses to average net assets:
Before reimbursement of expenses by Advisor/2/............. 0.56% 0.59% 0.63% 0.64%
After reimbursement of expenses by Advisor/2/.............. 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/............. 5.00% 4.93% 5.24% 3.49%
After reimbursement of expenses by Advisor/2/.............. 5.06% 5.02% 5.44% 3.73%
</TABLE>
- ---------------------------------------------------------------------
/1/ Not Annualized.
/2/ Annualized.
/3/ The Advisor's expenses reimbursement level, which affects the net expenses
ratio, changed from 0.40% to 0.50% on July 12, 1995.
(a) Chicago Trust Money Market Fund commenced investment operations on
December 14, 1993.
See accompanying Notes to Financial Statements.
45
<PAGE>
CT&T Funds
Notes to Financial Statements October 31, 1997
================================================================================
Note (A) Significant Accounting Policies: CT&T Funds (the "Company") operates as
a series company currently issuing eight series of shares of beneficial
interest: Montag & Caldwell Growth Fund (the "Growth Fund"), Chicago Trust
Growth & Income Fund (the "Growth & Income Fund"), Chicago Trust Talon Fund (the
"Talon Fund"), Chicago Trust 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 primarily intermediate-term 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.
46
<PAGE>
CT&T Funds
Notes to Financial Statements - continued October 31, 1997
================================================================================
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 Talon Fund for the year ended October
31, 1997 were as follows:
<TABLE>
<CAPTION>
Contracts Premium
--------- ---------
<S> <C> <C>
Outstanding at October 31, 1996.................................... 0 $ 0
Options purchased (Net)............................................ 215 (305,450)
Options exercised or terminated in closing transactions (Net)...... (65) 61,450
Options expired (Net).............................................. (100) 123,875
---- ---------
Outstanding at October 31, 1997.................................... 50 $(120,125)
==== =========
</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 Association (FNMA) or Federal Home Loan Mortgage
Corporation (FHLMC). However, some securities may be issued by private,
47
<PAGE>
CT&T Funds
Notes to Financial Statements-continued October 31, 1997
================================================================================
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 a "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, are distributed
annually. The Money Market Fund declares dividends daily from its net investment
income. The Money Market
48
<PAGE>
CT&T Funds
Notes to Financial Statements-continued October 31, 1997
================================================================================
Fund's dividends are payable monthly and are automatically reinvested in
additional Fund shares, at the month-end net asset value, for those shareowners
that have elected the reinvestment option. Differences in dividends per share
between classes of the Growth Fund are due to different class expenses. For the
year ended October 31, 1997, 100.00% of the income distributions made by the
Municipal Bond Fund were exempt from federal income taxes. Additionally during
the period, the Growth Fund, the Growth & Income Fund, the Talon Fund, the CT
Balanced Fund, the M&C Balanced Fund and the Bond Fund paid 28% rate gain
distributions of $1,879,416, $1,444,866, $973,259, $205, $2,336,074 and $16,748,
respectively. In January 1998, the Funds will provide 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. Permanent book and tax differences of
$21,494, $11,440 and $551 were reclassified at October 31, 1997 from accumulated
net realized gain on investments to undistributed net investment income in the
CT Balanced Fund, the Bond Fund and the M&C Balanced Fund, respectively, due to
losses on paydown adjustments from mortgage backed securities. In addition,
permanent book and tax basis differences in the Bond Fund relating to the sale
of interest only securities totaling $5,211 were reclassified from accumulated
net realized gain to undistributed net investment income.
The Growth Fund had a net operating loss for tax purposes, net of short-term
capital gains, of $187,503 for the year ended October 31, 1997. In addition, the
Growth Fund made required distributions of class specific allocations of net
investment income of $26,630 to the institutional class shareowners. These
amounts, along with the distribution in excess as of October 31, 1996 of
$73,703, were reclassified from undistributed net investment income to capital
paid-in as permanent differences at October 31, 1997.
Distributions from net realized gains for book purposes may include short-term
capital gains, which are included as ordinary income for tax purposes.
All of the income dividends paid by each fund were ordinary income for federal
income tax purposes. The percentage of income dividends that were qualifying
dividends for the corporate dividends received deduction were 21%, 70%, 8% and
17%, for the CT Balanced Fund, the Growth & Income Fund, the Talon Fund and the
M&C Balanced Fund, respectively.
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 October
31, 1997, Chicago Trust owned 2,500, 2,500 and 1,002,500 shares of the Growth &
Income Fund, the Bond Fund and the Municipal Bond Fund, respectively.
Note (D) Investment Transactions: Aggregate purchases and proceeds from sales of
investment securities (other than short-term investments) for the year ended
October 31, 1997 were:
<TABLE>
<CAPTION>
Aggregate Proceeds from
Purchases Sales
--------- -------------
<S> <C> <C>
Growth Fund $483,482,033 $84,626,624
Growth & Income Fund 84,712,809 69,309,780
Talon Fund 24,428,453 20,975,822
Ct Balanced Fund 61,644,515 55,976,823
M&C Balanced Fund 61,424,202 14,486,433
Bond Fund 60,725,202 16,480,883
Municipal Bond Fund 2,979,200 1,817,090
</TABLE>
49
<PAGE>
CT&T Funds
Notes to Financial Statements-continued October 31, 1997
================================================================================
Note (E) Advisory, Administration and Distribution Services Agreements: Under
various Advisory Agreements with the Funds, each Advisor provides investment
advisory services to the Funds. The Funds will pay advisory fees at the
following annual percentage rates of the average daily net assets of each Fund:
0.80% for the Growth Fund, 0.70% for the Growth & Income Fund, 0.80% for the
Talon Fund, 0.70% for the 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, the Municipal Bond Fund, and the
Money Market Fund for operating expenses which cause total expenses to exceed
0.98%, 1.30%, 1.10%, 1.30%, 1.10%, 1.25%, 0.80%, 0.90% and 0.50%, respectively.
Such expense reimbursements may be terminated at the discretion of the Advisors.
For the year ended October 31, 1997, the Advisors reimbursed expenses of $0 and
$41,428 for the Growth Fund (Institutional Class and Retail Class), $129,857 for
the Growth & Income Fund, $85,596 for the Talon Fund, $102,203 for the CT
Balanced Fund, $44,973 for the M&C Balanced Fund, $221,539 for the Bond Fund,
$85,359 for the Municipal Bond Fund and $142,332 for the Money Market Fund.
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>
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% of each participating Fund's average daily net assets.
The Growth Fund Institutional Class and the Money Market Fund do not have a
distribution plan.
For the year ended October 31, 1997, the class specific expenses of the Growth
Fund were:
<TABLE>
<CAPTION>
Class N (Retail) Class I (Institutional)
<S> <C> <C>
Transfer agent fees..................... $ 158,588 $ 8,978
Registration expenses................... 151,157 58,524
Legal fees.............................. 21,778 8,983
Report to shareowner expense............ 19,597 14,159
</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, 1997, the Company pays each unaffiliated trustee $1,500 per
Board of Trustees meeting attended and an annual retainer of $1,500.
50
<PAGE>
Independent Auditors' Report
The Board of Trustees and Shareowners of CT&T Funds:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of CT&T Funds (comprising, respectively, Montag &
Caldwell Growth Fund, Chicago Trust Growth & Income Fund, Chicago Trust Talon
Fund, Chicago Trust Balanced Fund, Montag & Caldwell Balanced Fund, Chicago
Trust Bond Fund, Chicago Trust Municipal Bond Fund, and Chicago Trust Money
Market Fund) as of October 31, 1997, and the related statements of operations
for the year then ended, the statements of changes in net assets for each of the
periods presented in the two-year period then ended, and the financial
highlights for each of the periods presented. These financial statements and
financial highlights are the responsibility of CT&T Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1997, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective Funds constituting the CT&T Funds as of October 31, 1997, the
results of their operations for the year then ended, the changes in their net
assets for each of the periods presented in the two-year period then ended, and
the financial highlights for each of the periods presented, in conformity with
generally accepted accounting principles.
KPMG Peat Marwick LLP
Chicago, Illinois
December 16, 1997
<PAGE>
This page left blank intentionally
<PAGE>
CT&T Funds
Trustees & Officers
- --------------------------------------------------------------------------------
TRUSTEES OFFICERS
Leonard F. Amari, Trustee* Kenneth C. Anderson
President
Stuart D. Bilton, Chairman David F. Seng
Senior Vice President
Dorothea C. Gilliam, Trustee Gerald F. Dillenburg
Vice President, Secretary and Treasurer
Gregory T. Mutz, Trustee* Thomas J. Adams, III
Vice President
Nathan Shapiro, Trustee* CUSTODIAN
Bankers Trust
One Bankers Trust Place
New York, New York 10001
ADVISORS
The Chicago Trust Company LEGAL COUNSEL
171 North Clark Street Sonnenschein Nath & Rosenthal
Chicago, Illinois 60601-3294 8000 Sears Tower
Chicago, Illinois 60606
Montag & Caldwell, Inc.
1100 Atlanta Financial Center AUDITOR
3343 Peachtree Road, NE KPMG Peat Marwick LLP
Atlanta, GA 30326-1450 303 East Wacker Drive
Chicago, Illinois 60601
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
*Unaffiliated Trustees
<PAGE>
Distributed by First Data Distributors, Inc.
4400 Computer Drive
Westborough, Massachusetts 01581
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.
