<PAGE>
[ALLEGHANY LOGO APPEARS HERE]
ALLEGHANY FUNDS
Semi-Annual
Report
ALLEGHANY/MONTAG & CALDWELL GROWTH FUND
ALLEGHANY/CHICAGO TRUST GROWTH & INCOME FUND
ALLEGHANY/CHICAGO TRUST TALON FUND
ALLEGHANY/CHICAGO TRUST SMALL CAP VALUE FUND
ALLEGHANY/VEREDUS AGGRESSIVE GROWTH FUND
ALLEGHANY/MONTAG & CALDWELL BALANCED FUND
ALLEGHANY/CHICAGO TRUST BALANCED FUND
ALLEGHANY/CHICAGO TRUST BOND FUND
ALLEGHANY/CHICAGO TRUST MUNICIPAL BOND FUND
ALLEGHANY/CHICAGO TRUST MONEY MARKET FUND
April 30, 1999
<PAGE>
Contents
===============================================================================
Letter from the President 1
- --------------------------------------------------------------------
Summary Information 2
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Schedule of Investments:
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Alleghany/Montag & Caldwell Growth Fund 6
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Alleghany/Chicago Trust Growth & Income Fund 7
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Alleghany/Chicago Trust Talon Fund 8
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Alleghany/Chicago Trust Small Cap Value Fund 9
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Alleghany/Veredus Aggressive Growth Fund 11
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Alleghany/Montag & Caldwell Balanced Fund 13
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Alleghany/Chicago Trust Balanced Fund 16
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Alleghany/Chicago Trust Bond Fund 20
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Alleghany/Chicago Trust Municipal Bond Fund 23
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Alleghany/Chicago Trust Money Market Fund 26
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Statement of Assets and Liabilities 28
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Statement of Operations 30
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Statement of Changes in Net Assets 32
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Financial Highlights 36
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Notes to Financial Statements 47
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A PHILOSOPHY OF DISCIPLINED INVESTING
Alleghany Funds is committed to providing superior, historically consistent
mutual fund investment returns by building a world-class investment team.
Although the investment advisers who manage our funds are asset-class
specialists who have a distinct investment focus, they share the same basic
investment philosophies and institutional-quality investment disciplines.
Style consistency. We believe that adhering to a highly structured institutional
process results in style consistency that you can rely on over the long term.
Proprietary research. We believe that proprietary fundamental research and
analysis leads to superior security selection.
Focused portfolios. We believe that domestic equity mutual funds with focused
portfolios, which on a relative basis emphasize a smaller number of carefully
researched, selected and monitored securities, offer the potential for superior
long-term returns.
Diligent risk management. We believe that protecting principal through diligent
portfolio risk management is critical to successful long-term wealth building.
<PAGE>
[ALLEGHANY LOGO APPEARS HERE]
Alleghany Funds
April 30, 1999
Dear Shareholder,
With this semi-annual report, we mark several important milestones for our
fund group. First, four of our funds, Alleghany/Chicago Trust Growth & Income,
Alleghany/Chicago Trust Bond, Alleghany/Chicago Trust Municipal Bond and
Alleghany/Chicago Trust Money Market have reached their fifth anniversaries.
With these Funds' five-year return figures, rankings and ratings, you now have
the information for evaluating their longer-term performance.
Second, our funds have continued to receive positive coverage in the
financial press. What matters to you, of course, is not that we're receiving
publicity, but rather that these mentions appear to affirm our disciplined
approach to investment management. One recent example of this coverage is the
May 1999 issue of Money magazine's naming Alleghany/Montag & Caldwell Growth
Fund to its Money 100 listing. Similarly, Alleghany/Chicago Trust Growth &
Income Fund was recently profiled in The New York Times on Sunday, April 19,
1999.
As proud as we are of our older funds, we're happy to add some new ones to
our lineup. Alleghany/Veredus Aggressive Growth Fund, managed by Tony Weber and
his team at Veredus Asset Management, focuses on small, fast growing companies.
Shareholders can read about this Fund in the June issue of Smart Money magazine.
Effective May 3, 1999, we also added two international funds,
Alleghany/Blairlogie International Developed Fund and Alleghany/Blairlogie
Emerging Markets Fund, which are managed by our international specialists at
Edinburgh, Scotland-based Blairlogie Capital Management.
Veredus, Blairlogie and all of our investment managers ply different areas
of the market, but they share Alleghany Funds' commitment to investment
discipline, risk control and experienced leadership. As we diversify our fund
lineup to address your broader investment needs, our commitment to these
principles will always remain front and center.
Thank you for your investment in Alleghany Funds. We'll continue to strive
to exceed your expectations.
Sincerely,
/S/ Kenneth C. Anderson
- -------------------------
Kenneth C. Anderson
President
Alleghany Funds are no-load mutual funds distributed by First Data Distributors,
Inc., Westborough, MA 01581. This is not an offer to sell or a solicitation of
an offer to buy shares of any of the Funds described. Investment return and
principal value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost. This
information must be accompanied or preceded by a prospectus.
Shareholder Services 800 992 8151 www.alleghanyfunds.com
THE CHICAGO TRUST COMPANY * MONTAG & CALDWELL * VEREDUS ASSET MANAGEMENT *
BLAIRLOGIE CAPITAL MANAGEMENT
<PAGE>
Alleghany Funds -- Summary Information
Performance for the Six Months Ended April 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Alleghany/Montag & Caldwell Growth Fund
Class N Class I
<S> <C> <C>
Total Returns:
6 months 23.61% 23.73%
1 Year 20.65% 20.92%
Three Year
Average Annual 30.40% N/A
Five Year
Average Annual N/A N/A
Average Annual
Since Inception 30.82% 31.11%
Value of $10,000
from Inception $ 33,408 $ 21,541
Date 11/02/94 06/28/96
Top Ten Holdings as of April 30, 1999
Company and Coca-Cola Co. 4.99%
% of Total Net Gillette Co. 4.86%
Assets Johnson & Johnson 4.35%
Pfizer, Inc. 4.29%
Hewlett-Packard Co. 4.28%
The Walt Disney Co. 3.94%
Intel Corp. 3.92%
McDonald's Corp. 3.86%
Procter and Gamble Co. 3.82%
Bristol-Myers Squibb Co. 3.70%
Alleghany/
Chicago Trust Talon Fund
Total Returns:
6 months 6.57%
1 Year (7.95)%
Three Year
Average Annual 10.41%
Five Year
Average Annual N/A
Average Annual
Since Inception 15.74%
Value of $10,000
from Inception $ 19,624
Date 09/19/94
Top Ten Holdings as of April 30, 1999
Company and St. Paul Bancorp, Inc. 6.20%
% of Total Net Starbucks Corp. 4.80%
Assets Columbia\HCA Healthcare Corp. 4.76%
Newbridge Networks Corp. 4.48%
Loral Space & Communications Ltd. 3.76%
Tenet Healthcare Corp. 3.75%
AT&T Corp. - Liberty Media Group, Class A 3.69%
Mylan Laboratories Inc. 3.61%
Corning Inc. 3.58%
American Power Conversion Corp. 3.50%
</TABLE>
<TABLE>
<CAPTION>
Alleghany/
Chicago Trust Growth & Income Fund
<S> <C>
Total Returns:
6 months 26.24%
1 Year 28.98%
Three Year
Average Annual 30.02%
Five Year
Average Annual 27.44%
Average Annual
Since Inception 24.83%
Value of $10,000
from Inception $ 32,936
Date 12/13/93
Top Ten Holdings
Company and Tellabs, Inc. 4.22%
% of Total Net Federal Home Loan Mortgage Corp. 3.48%
Assets Illinois Tool Works, Inc. 3.46%
Sysco Corp. 3.43%
Schwab (Charles) Corp. 3.35%
Paychex, Inc. 3.24%
EMC Corp. 3.16%
Cardinal Health, Inc. 3.11%
Pitney Bowes, Inc. 3.06%
Cisco Systems, Inc. 2.97%
Alleghany/
Chicago Trust Small Cap Value Fund
<S> <C>
Total Returns:
6 months N/A
1 Year N/A
Three Year
Average Annual N/A
Five Year
Average Annual N/A
Average Annual
Since Inception N/A
Value of $10,000
from Inception $ 9,854
Date 11/10/98
Top Ten Holdings
Company and U.S. Trust Corp. 3.95%
% of Total Net Houghton Mifflin Co. 3.56%
Assets Santa-Fe Energy Resources, Inc. 3.47%
Bell & Howell Co. 3.23%
Granite Construction, Inc. 3.19%
Newport News Shipbuilding, Inc. 3.04%
Cytec Industries, Inc. 2.99%
Specialty Equipment Cos., Inc. 2.94%
Dexter Corp. 2.88%
Rowan Cos., Inc. 2.81%
</TABLE>
2
<PAGE>
Alleghany Funds -- Summary Information
Performance for the Six Months Ended April 30, 1999 (unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Alleghany/ Alleghany/Montag & Caldwell Balanced Fund
Veredus Aggressive Growth Fund Class N Class I
<S> <C> <C>
Total Returns:
6 months 47.45% 14.67% N/A
1 Year N/A 15.79% N/A
Three Year
Average Annual N/A 21.79% N/A
Five Year
Average Annual N/A N/A N/A
Average Annual
Since Inception N/A 21.85% N/A
Value of $10,000
from Inception $ 12,710 $ 24,292 $ 10,394
Date 07/02/98 11/02/94 12/31/98
Top Ten Holdings as of April 30, 1999
Company and Navistar International Corp. 6.85% Johnson & Johnson 3.08%
% of Total Net Uniphase Corp. 5.13% Gillette Co. 2.94%
Assets FORESystems, Inc. 4.02% Coca-Cola Co. 2.83%
Terayon Communication 3.25% Procter & Gamble Co. 2.54%
Systems, Inc.
Ames Department Stores, Inc. 3.22% Boston Scientific Corp. 2.49%
Genesco Inc. 3.02% Hewlett-Packard Co. 2.49%
Jones InterCable, Inc., 2.85% Intel Corp. 2.48%
Class A
LaserSight Inc. 2.68% The Walt Disney Co. 2.43%
Harmonic Inc. 2.62% Bristol-Myers Squibb Co. 2.41%
AnnTaylor Stores Corp. 2.57% McDonald's Corp. 2.39%
Alleghany/ Alleghany/
Chicago Trust Balanced Fund Chicago Trust Bond Fund
Total Returns:
6 months 16.59% 1.50%
1 Year 20.15% 5.86%
Three Year
Average Annual 21.75% 7.78%
Five Year
Average Annual N/A 7.63%
Average Annual
Since Inception 20.60% 6.44%
Value of $10,000
from Inception $ 19,659 $ 13,985
Date 09/21/95 12/13/93
Top Ten Holdings as of April 30, 1999
Company and Schwab (Charles) Corp. 2.37% U.S. Treasury Note, 6.125%, 08/15/07 3.23%
% of Total Net EMC Corp. 2.35% U.S. Treasury Bond, 6.250%, 08/15/23 3.22%
Assets American International 2.22% U.S. Treasury Note, 6.375%, 08/15/02 3.20%
Group, Inc.
Tellabs, Inc. 2.17% U.S. Treasury Note, 5.750%, 08/15/03 3.15%
Sysco Corp. 2.14% U.S. Treasury Note, 7.125%, 02/29/00 3.15%
General Electric Co. 2.09% U.S. Treasury Note, 7.250%, 05/15/04 2.69%
Cisco Systems, Inc. 2.05% U.S. Treasury Bond, 6.000%, 02/15/26 2.51%
Federal Home Loan Mortgage Federal National Mtge., 5.625%,
Corp. 2.03% 03/15/01 1.87%
Harley-Davidson, Inc. 1.93% Federal Home Loan Mtge., 5.750%,
07/15/03 1.87%
Pitney Bowes, Inc. 1.89% Federal Home Loan Mtge., 6.500%,
01/01/14 Gold Pool # E00619 1.84%
</TABLE>
3
<PAGE>
Alleghany Funds -- Summary Information
Performance for the Six Months Ended April 30, 1999 (unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Alleghany/Chicago Trust Municipal Bond
<S> <C>
Fund
Total Returns:
6 months 1.35%
1 year 5.81%
Three Year
Average Annual 5.13%
Five Year
Average Annual 5.08%
Average Annual
Since Inception 4.33%
Value of $10,000
from Inception $12,561
Date 12/13/93
Top Ten Holdings as of April 30, 1999
Company and King County, Washington, Series A, State of Illinois, G.O.
% of Total Net G.O., 5.800%, 01/01/04 3.02% 5.000%, 03/01/08 2.16%
Assets Green Bay, Series A, G.O. State of New Jersey Transportation
5.100%, 04/01/00 3.00% Trust Fund Revenue, Series A
Salt River Project Electric System, Escrowed to Maturity
Revenue Refunding, Series A 5.200%. 12/15/00 2.12%
5.500%, 01/01/05 2.85% Tooele County, Utah Hazardous Waste
Commonwealth of Puerto Rico, Series A, Treatment Revenue
G.O., 6.500%, 07/01/03 2.61% 5.700%, 11/01/26 2.05%
Clark County, Nevada, School District, Atlanta Water and Waste Revenue, Series A
G.O., 6.400%, 06/15/06 2.34% 5.000%, 11/01/09 2.04%
Utah State Building Ownership Authority
Lease Revenue, Series A, State Facilities
Master Lease PG-C
5.500%, 05/15/11 2.23%
</TABLE>
See accompanying Notes to Financial Statements
4
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This page left blank intentionally.
5
<PAGE>
Alleghany Funds
Alleghany/Montag & Caldwell Growth Fund
Schedule of Investments (unaudited) April 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value
- ------ ------
<S> <C> <C>
COMMON STOCKS - 94.31%
Business Services - 0.84%
955,200 Manpower, Inc.......................... $ 21,611,400
-------------
Consumer Non-Durables - 12.78%
1,023,100 Bestfoods.............................. 51,346,831
2,400,000 Gillette Co............................ 125,250,000
700,000 Interpublic Group of Companies, Inc.... 54,293,750
1,050,000 Procter & Gamble Co.................... 98,503,125
-------------
329,393,706
-------------
Electrical - 3.48%
850,000 General Electric Co.................... 89,675,000
-------------
Entertainment and Leisure - 5.29%
844,800 Carnival Corp.......................... 34,848,000
3,200,000 The Walt Disney Co..................... 101,600,000
-------------
136,448,000
-------------
Finance - 6.19%
591,900 American Express Co.................... 77,353,931
700,000 American International Group, Inc...... 82,206,250
-------------
159,560,181
-------------
Food and Beverage - 4.99%
1,892,800 Coca-Cola Co........................... 128,710,400
-------------
Health Care Services - 8.64%
1,150,000 Johnson & Johnson...................... 112,125,000
961,100 Pfizer, Inc............................ 110,586,569
-------------
222,711,569
-------------
Lodging - 2.28%
1,406,400 Marriott International, Inc., Class A.. 58,893,000
-------------
Medical Supplies - 2.79%
1,000,000 Medtronic, Inc......................... 71,937,500
-------------
Pharmaceuticals - 8.12%
1,500,000 Bristol-Myers Squibb Co................ 95,343,750
800,000 Eli Lilly & Co......................... 58,900,000
782,600 Merck & Co., Inc....................... 54,977,650
-------------
209,221,400
-------------
Restaurants - 3.98%
154,100 CBRL Group, Inc........................ 3,110,894
2,349,700 McDonald's Corp........................ 99,568,537
-------------
102,679,431
-------------
Retail - 6.65%
406,800 Costco Companies., Inc.*............... 32,925,375
900,600 Gap, Inc............................... 59,946,188
1,308,400 Home Depot, Inc........................ 78,422,225
-------------
171,293,788
-------------
Technology - 23.11%
2,200,000 Boston Scientific Corp.*............... 93,637,500
610,300 Cisco Systems, Inc.*................... 69,612,344
700,000 Electronic Arts, Inc.*................. 35,568,750
975,600 Electronic Data Systems Corp........... 52,438,500
1,400,000 Hewlett-Packard Co..................... 110,425,000
1,650,000 Intel Corp............................. 100,959,375
1,040,000 Microsoft Corp.*....................... 84,565,000
997,600 Solectron Corp.*....................... 48,383,600
-------------
595,590,069
-------------
Telecommunications - 5.17%
700,000 MCI WorldCom, Inc...................... 57,400,000
693,200 Tellabs, Inc.*......................... 75,948,725
-------------
133,348,725
-------------
Total Common Stocks.................... 2,431,074,169
(Cost $1,753,983,908) -------------
INVESTMENT COMPANIES - 6.74%
127,031,471 Bankers Trust Institutional
Cash Management Fund................... 127,031,471
46,792,264 Bankers Trust Institutional
Treasury Money Fund.................... 46,792,264
-------------
Total Investment Companies............. 173,823,735
(Cost $173,823,735)
Total Investments - 101.05%........................... 2,604,897,904
(Cost $1,927,807,643)** --------------
Liabilities Net of Cash and Other Assets - (1.05)%.... (27,162,493)
--------------
Net Assets - 100.00%.................................. $2,577,735,411
==============
</TABLE>
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is $1,927,807,643.
Gross unrealized appreciation...................... $ 704,987,749
Gross unrealized depreciation...................... (27,897,488)
--------------
Net unrealized appreciation........................ $ 677,090,261
==============
See accompanying Notes to Financial Statements.
6
<PAGE>
Alleghany Funds
Alleghany/Chicago Trust Growth & Income Fund
Schedule of Investments (unaudited) April 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value
- ------ ------
<S> <C> <C>
COMMON STOCKS - 96.62%
Advertising - 2.53%
175,000 Omnicom Group, Inc........................ $ 12,687,500
--------------
Business Services - 3.24%
318,000 Paychex, Inc.............................. 16,237,875
--------------
Capital Goods - 3.06%
219,000 Pitney Bowes, Inc......................... 15,316,312
--------------
Chemicals - 2.27%
220,000 Praxair, Inc.............................. 11,385,000
--------------
Commercial Service - 2.52%
301,000 Ecolab, Inc............................... 12,623,187
--------------
Consumer Durables - 8.37%
241,000 Harley-Davidson, Inc...................... 14,369,625
225,000 Illinois Tool Works, Inc.................. 17,325,000
140,000 Johnson Controls, Inc..................... 10,193,750
--------------
41,888,375
--------------
Consumer Non-Durables - 7.08%
200,200 Cintas Corp............................... 13,763,750
250,100 Newell Rubbermaid, Inc.................... 11,864,119
105,000 Procter & Gamble Co....................... 9,850,312
--------------
35,478,181
--------------
Electrical - 2.55%
120,800 General Electric Co....................... 12,744,400
--------------
Finance - 18.66%
230,000 AFLAC Inc................................. 12,477,500
125,962 American International Group, Inc......... 14,792,662
266,000 Associates First Capital Corp., Class A... 11,787,125
278,000 Federal Home Loan Mortgage Corp........... 17,444,500
307,930 MBNA Corp................................. 8,679,777
153,000 Schwab (Charles) Corp..................... 16,791,750
265,000 Wells Fargo Co............................ 11,444,687
--------------
93,418,001
--------------
Food and Beverage - 3.43%
578,000 Sysco Corp................................ 17,159,375
--------------
Health Care Services - 10.83%
260,000 Cardinal Health, Inc...................... 15,551,250
800,000 Health Management Associates, Inc.,
Class A*.................................. 12,500,000
130,980 McKesson HBOC, Inc........................ 4,584,300
450,000 Omnicare, Inc............................. 10,828,125
93,600 Pfizer, Inc............................... 10,769,850
--------------
54,233,525
--------------
Medical Supplies - 1.48%
268,000 Sybron International Corp.*............... 7,420,250
--------------
Oil and Gas Extraction - 1.70%
133,000 Schlumberger Limited...................... 8,495,375
--------------
Pharmaceuticals - 1.56%
111,400 Merck & Co., Inc.......................... 7,825,850
--------------
Retail - 4.34%
130,000 Kohl's Corp.*............................. 8,636,875
488,000 Walgreen Co............................... 13,115,000
--------------
21,751,875
--------------
Technology - 17.08%
130,400 Cisco Systems, Inc.*...................... 14,873,750
205,000 Computer Associates International, Inc.... 8,750,938
185,000 Computer Sciences Corp.*.................. 11,019,063
145,000 EMC Corp.*................................ 15,795,938
129,600 Microsoft Corp.*.......................... 10,538,100
200,000 Solectron Corp.*.......................... 9,700,000
248,000 Sun Microsystems, Inc.*................... 14,833,500
--------------
85,511,289
--------------
Telecommunications - 4.22%
193,000 Tellabs, Inc.*............................ 21,145,563
--------------
Utility - 1.70%
170,000 AES Corp.*................................ 8,500,000
--------------
Total Common Stocks....................... 483,821,933
(Cost $274,149,248) --------------
</TABLE>
<TABLE>
<CAPTION>
Par Value
- ---------
<S> <C> <C>
REPURCHASE AGREEMENT - 3.95%
$19,777,000 First Chicago
4.850%, dated 04/30/99 to be repurchased
on 05/03/99 at $19,784,993
(Collateralized by U.S. Treasury Note
5.625% due 04/30/00;
Total Par $20,048,000).................... 19,777,000
-------------
Total Repurchase Agreement................ 19,777,000
(Cost $19,777,000) -------------
Total Investments - 100.57%............................ 503,598,933
(Cost $293,926,248)** -------------
Liabilities Net of Cash and Other Assets - (0.57)%..... (2,837,499)
-------------
Net Assets - 100.00%................................... $ 500,761,434
=============
</TABLE>
- -------------------------------------------------
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is $293,926,248.
Gross unrealized appreciation.................... $ 218,920,606
Gross unrealized depreciation.................... (9,247,921)
--------------
Net unrealized appreciation...................... $ 209,672,685
==============
See accompanying Notes to Financial Statements.
7
<PAGE>
Alleghany Funds
Alleghany/Chicago Trust Talon Fund
Schedule of Investments (unaudited) April 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value
- ------ ------
<S> <C> <C>
COMMON STOCKS - 93.34%
Building and Construction - 2.68%
30,000 Champion Enterprises, Inc. *.............. $ 556,875
-----------
Business Services - 3.56%
22,500 Manpower, Inc............................. 509,062
10,000 Wallace Computer Services, Inc............ 230,625
-----------
739,687
-----------
Chemicals - 1.57%
10,000 Sigma-Aldrich Corp........................ 325,000
-----------
Consumer Durable Goods - 3.58%
13,000 Corning, Inc.............................. 744,250
-----------
Electrical - 2.73%
13,500 Thomas & Betts Corp....................... 567,000
-----------
Electronics - 3.47%
60,000 Sensormatic Electronics Corp. *........... 720,000
-----------
Finance - 14.91%
105,000 Capital Trust, Class A *.................. 564,375
140,200 Danielson Holdings Corp. *................ 692,238
53,125 St. Paul Bancorp, Inc..................... 1,288,281
16,000 Travelers Property Casualty Corp., Class A 552,000
-----------
3,096,894
-----------
Health Care Services - 11.72%
40,000 Columbia\HCA Healthcare Corp.............. 987,500
24,000 HCR Manor Care, Inc. *.................... 666,000
33,000 Tenet Healthcare Corp. *.................. 779,625
-----------
2,433,125
-----------
Oil and Gas Extraction - 2.48%
20,000 Helmerich & Payne, Inc.................... 515,000
-----------
Pharmaceuticals - 8.13%
33,000 Mylan Laboratories Inc.................... 748,688
59,900 North American Vaccine, Inc. *............ 321,963
13,500 Teva Pharmaceutical Industries Ltd., ADR.. 617,625
-----------
1,688,276
-----------
Printing and Publishing - 3.07%
18,000 R.R. Donnelley & Sons Co.................. 636,750
-----------
Real Estate - 1.78%
13,400 Equity Office Properties Trust, REIT...... 369,338
-----------
Restaurants - 4.80%
27,000 Starbucks Corp. *......................... 997,312
-----------
Technology - 22.01%
22,000 American Power Conversion Corp. *......... 726,000
37,000 Cerner Corp. *............................ 629,000
18,000 Comdisco, Inc............................. 473,625
23,000 Diebold, Inc.............................. 553,437
47,000 Mentor Graphics Corp. *................... 569,875
25,000 Newbridge Networks Corp. *................ 931,250
229,500 Robotic Vision Systems, Inc. *............ 451,828
7,500 Sterling Commerce, Inc. *................. 234,844
-----------
4,569,859
-----------
Telecommunications - 5.17%
22,000 Andrew Corp. *............................ 306,625
12,000 AT&T Corp. - Liberty Media Group, Class A.* 766,500
-----------
1,073,125
-----------
Transportation - 1.68%
8,000 CNF Transportation, Inc................... 349,500
-----------
Total Common Stocks....................... 19,381,991
(Cost $18,488,032) -----------
PREFFERED STOCK - 3.76%
Telecommunications - 3.76%
40,000 Loral Space & Communications Ltd.......... 780,000
-----------
Total Preferred Stock..................... 780,000
(Cost $625,838) -----------
INVESTMENT COMPANY - 2.97%
616,820 Bankers Trust Institutional
Cash Management Fund...................... 616,820
-----------
Total Investment Company.................. 616,820
(Cost $616,820) -----------
Total Investments - 100.07%............................ 20,778,811
(Cost $19,730,690)** -----------
Liabilities Net of Cash and Other Assets - (0.07)%..... (14,074)
-----------
Net Assets - 100.00%................................... $20,764,737
===========
</TABLE>
- -----------------------------------------------------
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is $19,730,690.
Gross unrealized appreciation.................... $ 3,784,562
Gross unrealized depreciation.................... (2,736,441)
-----------
Net unrealized appreciation...................... $ 1,048,121
===========
ADR American Depositary Receipt
REIT Real Estate Investment Trust
See accompanying Notes to Financial Statements.
8
<PAGE>
Alleghany Funds
Alleghany/Chicago Trust Small Cap Value Fund
Schedule of Investments (unaudited) April 30, 1999
================================================================================
<TABLE>
<CAPTION>
Market
Shares Value
- ------ -----
<S> <C>
COMMON STOCKS - 95.03%
Aerospace and Defense - 4.14%
5,400 Alliant Techsystems, Inc.*................. $ 442,125
46,400 Newport News Shipbuilding, Inc............. 1,215,100
----------
1,657,225
----------
Airlines - 0.93%
9,000 America West Holdings Corp., Class B*...... 187,875
7,000 SkyWest, Inc............................... 182,000
----------
369,875
----------
Automobile - 1.05%
14,600 Hayes Lemmerz International, Inc.*......... 419,750
----------
Building and Construction - 4.28%
12,000 Engle Homes, Inc........................... 139,500
44,700 Granite Construction, Inc.................. 1,276,744
8,700 U.S. Home Corp.*........................... 297,975
----------
1,714,219
----------
Commercial Services - 5.49%
38,700 Bell & Howell Co.*......................... 1,294,031
39,100 Wallace Computer Services, Inc............. 901,744
----------
2,195,775
----------
Consumer Non-Durables - 2.88%
28,100 Dexter Corp................................ 1,153,856
----------
Containers and Packaging - 4.22%
92,200 Gaylord Container Corp.*................... 772,175
54,000 U.S. Can Corp.*............................ 918,000
----------
1,690,175
----------
Energy - 2.09%
31,600 Equitable Resources, Inc................... 837,400
----------
Finance - 22.57%
25,000 Amerin Corp.*.............................. 585,938
40,200 Community First Bankshares, Inc............ 821,588
50,500 Fidelity National Corp..................... 454,500
12,000 First Financial Holdings, Inc.............. 238,500
13,900 First Midwest Bancorp., Inc................ 555,131
10,600 Hambrecht & Quist Group*................... 373,650
32,500 Horace Mann Educators Corp................. 739,375
5,300 Investors Financial Services Corp.......... 192,788
26,500 Premier Bancshares, Inc.................... 520,062
25,400 Prime Bancshares, Inc...................... 403,225
84,500 Republic Security Financial Corp........... 734,094
26,000 Triad Guaranty, Inc.*...................... 409,500
39,000 Triangle Bancorp, Inc...................... 633,750
17,300 U.S. Trust Corp............................ 1,580,788
25,600 Webster Financial Corp..................... 787,200
----------
9,030,089
----------
Food and Beverage - 4.45%
16,800 Canandaigua Brands, Inc., Class A*......... $ 865,200
15,800 International Multifoods Corp.............. 349,575
32,200 Smucker (J.M.) Co., Class B................ 563,500
----------
1,778,275
----------
Footwear - 3.81%
78,900 Florsheim Group, Inc.*..................... 532,575
84,800 Stride Rite Corp........................... 991,100
----------
1,523,675
----------
Furniture and Fixtures - 2.32%
38,700 Bassett Furniture Industries, Inc.......... 928,800
----------
Health Care Services - 1.25%
54,600 Mid Atlantic Medical Services, Inc.*....... 498,225
----------
Industrial - 5.93%
42,000 Cytec Industries, Inc.*.................... 1,194,375
39,400 Specialty Equipment Cos., Inc.*............ 1,177,075
----------
2,371,450
----------
Metals - 1.04%
65,200 LTV Corp................................... 415,650
----------
Oil and Gas Extraction - 6.28%
70,200 Rowan Cos., Inc.*.......................... 1,123,200
154,300 Santa-Fe Energy Resources, Inc.*........... 1,388,700
----------
2,511,900
----------
Oil Services - 2.63%
52,000 Veritas DGC, Inc.*......................... 1,053,000
----------
Printing and Publishing - 5.11%
37,600 Harland (John H.) Co....................... 622,750
31,900 Houghton Mifflin Co........................ 1,423,537
----------
2,046,287
----------
Real Estate Investment Trust (REIT) - 6.08%
14,900 Cabot Industrial Trust..................... 303,587
8,600 Centerpoint Properties Corp................ 309,062
31,400 Gables Residential Trust................... 747,713
12,900 National Health Investors, Inc............. 324,113
39,200 Walden Residential Properties, Inc......... 749,700
----------
2,434,175
----------
Restaurants - 1.84%
16,100 IHOP Corp.*................................ 736,575
----------
</TABLE>
See accompanying Notes to Financial Statements.
9
<PAGE>
Alleghany Funds
Alleghany/Chicago Trust Small Cap Value Fund
Schedule of Investments - continued (unaudited) April 30, 1999
================================================================================
<TABLE>
<CAPTION>
Market
Shares Value
- ------ -----
<S> <C>
Retail - 1.41%
24,900 Michaels Stores, Inc.*................... $ 563,362
-----------
Transportation - 4.35%
51,000 Consolidated Freightways Corp.*.......... 573,750
45,000 Offshore Logistics, Inc.*................ 556,875
21,400 Swift Transportation Co., Inc.*.......... 393,225
11,800 Wisconsin Central Transportation Corp.*.. 217,931
-----------
1,741,781
-----------
Utility - 0.88%
15,000 Washington Gas Light Co.................. 353,437
-----------
Total Common Stocks...................... 38,024,956
-----------
(Cost $36,312,818)
Par Value
- ---------
REPURCHASE AGREEMENT - 3.27%
$1,308,000 First Chicago
4.850%, dated 4/30/99 to be repurchased
on 05/03/99 at $1,308,529
(Collateralized by U.S. Treasury Bill
4.480%, due 09/09/99;
Total Par $1,357,000).................... 1,308,000
-----------
Total Repurchase Agreement............... 1,308,000
-----------
(Cost $1,308,000)
Total Investments - 98.30%........................... 39,332,956
-----------
(Cost $37,620,818)**
Net Other Assets and Liabilities - 1.70%............. 678,242
-----------
Net Assets - 100.00%................................. $40,011,198
===========
- -----------------------------------------------------
* Non-income producing security.
**Aggregate cost for Federal income tax purposes is $37,620,818.
Gross unrealized appreciation................... $ 2,938,404
Gross unrealized depreciation................... (1,226,266)
-----------
Net unrealized appreciation..................... $ 1,712,138
===========
</TABLE>
See accompanying Notes to Financial Statements.
10
<PAGE>
Alleghany Funds
Alleghany/Veredus Aggressive Growth Fund
Schedule of Investments (unaudited) April 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Value
- ------ ------
<S> <C> <C>
COMMON STOCKS - 89.56%
Airlines - 3.36%
40,700 Frontier Airlines, Inc. *............... $ 503,663
19,800 Skywest, Inc............................ 514,800
-----------
1,018,463
-----------
Automobile - 7.53%
8,900 Detroit Diesel Corp..................... 203,588
39,700 Navistar International Corp. *.......... 2,076,806
-----------
2,280,394
-----------
Communications Equipment - 5.06%
22,100 Antec Corp. *........................... 599,462
17,800 Polycom, Inc. *......................... 434,988
16,400 Powerwave Technologies, Inc. *.......... 498,150
-----------
1,532,600
-----------
Computer Software - 6.00%
14,800 BindView Development Corp. *............ 318,200
9,300 Concentric Network Corp. *.............. 776,550
18,800 Excaliber Technologies Corp. *.......... 291,400
6,600 Timberline Software Corp................ 96,938
4,700 Verio, Inc. *........................... 333,700
-----------
1,816,788
-----------
Consumer Durable Goods - 0.84%
15,800 Select Comfort Corp. *.................. 255,763
-----------
Consumer Services - 4.10%
18,600 Jones InterCable, Inc., Class A *....... 862,575
35,400 Turbochef Technologies, Inc. *.......... 380,550
-----------
1,243,125
-----------
Electronics - 7.01%
10,800 Applied Micro Circuits Corp. *.......... 575,775
13,000 Conexant Systems, Inc. *................ 529,750
4,900 hi/fn, inc. *........................... 264,600
7,800 TranSwitch Corp. *...................... 343,200
8,900 Vitesse Semiconductor Corp. *........... 412,181
-----------
2,125,506
-----------
Finance - 4.03%
13,100 National Discount Brokers Group, Inc. *. 747,519
6,300 Republic BanCorp, Inc., Class A......... 71,662
13,100 Webster Financial Corp.................. 402,825
-----------
1,222,006
-----------
Health Care Services - 3.70%
11,100 Genzyme Corp. *......................... 419,025
6,500 Laser Vision Centers, Inc. *............ 273,812
11,700 TLC The Laser Center *.................. 429,609
-----------
1,122,446
-----------
Medical Software - 1.50%
17,300 InfoCure Corp. *........................ 455,206
-----------
Medical Technologies - 2.69%
87,300 LaserSight Inc. *....................... 812,981
-----------
Pharmaceuticals - 1.28%
18,700 BioChem Pharma, Inc. *.................. 388,025
-----------
Restaurants - 2.58%
9,300 Buca, Inc. *............................ 168,562
24,300 P.F. Chang's China Bistro, Inc. *....... 613,575
-----------
782,137
-----------
Retail - 17.03%
5,900 American Eagle Outfitters, Inc. *....... 441,025
27,900 Ames Department Stores, Inc. *.......... 974,756
16,400 AnnTaylor Stores Corp. *................ 779,000
30,500 Catherines Stores Corp. *............... 301,188
20,300 Cutter & Buck, Inc. *................... 525,262
30,100 DM Management Co. *..................... 714,875
84,300 Genesco Inc. *.......................... 916,763
17,500 Williams-Sonoma,Inc. *.................. 507,500
-----------
5,160,369
-----------
Technology - 18.48%
31,100 Act Networks, Inc. *.................... 559,800
23,000 Ciena Corp. *........................... 540,500
14,500 Computer Network *...................... 270,969
15,400 E-Tek Dynamics, Inc. *.................. 662,200
36,100 FORE Systems, Inc. *.................... 1,218,375
17,400 Harmonic Inc. *......................... 793,875
12,800 Uniphase Corp. *........................ 1,553,600
-----------
5,599,319
-----------
Telecommunications - 4.37%
16,900 Com21, Inc. *........................... 526,012
12,400 Terayon Communication Systems, Inc. *... 500,650
7,200 Tut Systems, Inc. *..................... 296,100
-----------
1,322,762
-----------
Total Common Stocks..................... 27,137,890
(Cost $21,209,362) -----------
</TABLE>
See accompaning Notes to Financial Statements.
11
<PAGE>
ALLEGHANY FUNDS
Alleghany/Veredus Aggressive Growth Fund
Schedule of Investments - continued (unaudited) April 30, 1999
==============================================================================
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- ------
REPURCHASE AGREEMENT - 10.81%
<S> <C>
$3,277,211 Morgan Stanley, Bank of New York Tri-Party
4.550%, dated 4/30/99 to be repurchased
on 05/03/99 at $3,278,454
(Collateralized by U.S. Treasury Bill
4.597%, due 09/16/99;
Total Par $3,420,000).................... $ 3,277,211
-----------
Total Repurchase Agreement............... 3,277,211
-----------
(Cost $3,277,211)
Total Investments - 100.37% ......................... 30,415,101
-----------
(Cost $24,486,573)**
Liabilities Net of Cash and Other Assets - (0.37)%... (112,553)
-----------
Net Assets - 100.00%................................. $30,302,548
===========
- ------------------------------------------------------
* Non-income producing security.
**Aggregate cost for Federal income tax purposes is $24,486,573.
Gross unrealized appreciation.................... $ 6,710,074
Gross unrealized depreciation.................... (781,546)
-----------
Net unrealized appreciation...................... $ 5,928,528
===========
</TABLE>
See accompanying Notes to Financial Statements.
12
<PAGE>
Alleghany Funds
Alleghany/Montag & Caldwell Balanced Fund
Schedule of Investments (unaudited) April 30, 1999
===============================================================================
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- -----
COMMON STOCKS - 60.42%
<S> <C>
Business Services - 0.52%
51,500 Manpower, Inc............................ $ 1,165,188
------------
Consumer Non-Durables - 8.68%
75,000 Bestfoods................................ 3,764,063
125,000 Gillette Co.............................. 6,523,437
43,000 Interpublic Group of Companies, Inc...... 3,335,187
60,000 Procter & Gamble Co...................... 5,628,750
------------
19,251,437
------------
Electrical - 2.23%
47,000 General Electric Co...................... 4,958,500
------------
Entertainment and Leisure - 3.26%
44,500 Carnival Corp............................ 1,835,625
170,000 The Walt Disney Co....................... 5,397,500
------------
7,233,125
------------
Finance - 3.78%
28,200 American Express Co...................... 3,685,388
40,000 American International Group, Inc........ 4,697,500
------------
8,382,888
------------
Food and Beverage - 2.83%
92,500 Coca-Cola Co............................. 6,290,000
------------
Health Care Services - 5.46%
70,000 Johnson & Johnson........................ 6,825,000
46,000 Pfizer, Inc.............................. 5,292,875
------------
12,117,875
------------
Lodging - 1.89%
100,000 Marriott International, Inc., Class A.... 4,187,500
------------
Medical Supplies - 1.72%
53,000 Medtronic, Inc........................... 3,812,687
------------
Pharmaceuticals - 5.23%
84,000 Bristol-Myers Squibb Co.................. 5,339,250
45,000 Eli Lilly & Co........................... 3,313,125
42,000 Merck & Co., Inc......................... 2,950,500
------------
11,602,875
------------
Restaurants - 2.54%
15,800 CBRL Group, Inc.......................... 318,962
125,300 McDonald's Corp.......................... 5,309,588
------------
5,628,550
------------
Retail - 4.05%
20,500 Costco Companies, Inc.*.................. $ 1,659,219
43,300 Gap, Inc................................. 2,882,156
74,300 Home Depot, Inc.......................... 4,453,356
------------
8,994,731
------------
Technology - 15.00%
130,000 Boston Scientific Corp.*................. 5,533,125
31,500 Cisco Systems, Inc.*..................... 3,592,969
50,000 Electronic Arts, Inc.*................... 2,540,625
57,000 Electronic Data Systems Corp............. 3,063,750
70,000 Hewlett-Packard Co....................... 5,521,250
90,000 Intel Corp............................... 5,506,875
64,000 Microsoft Corp.*......................... 5,204,000
48,000 Solectron Corp.*......................... 2,328,000
------------
33,290,594
------------
Telecommunications - 3.23%
40,000 MCI WorldCom, Inc........................ 3,280,000
35,400 Tellabs, Inc.*........................... 3,878,513
------------
7,158,513
------------
Total Common Stocks...................... 134,074,463
------------
(Cost $97,288,589)
Par Value
- ---------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 17.35%
U.S. Treasury Notes - 6.37%
$1,500,000 6.250%, 04/30/01......................... 1,532,835
3,500,000 6.625%, 04/30/02......................... 3,638,495
3,000,000 5.750%, 08/15/03......................... 3,056,640
1,750,000 7.875%, 11/15/04......................... 1,961,838
3,750,000 6.250%, 02/15/07......................... 3,945,187
------------
14,134,995
------------
U.S. Treasury Bonds - 5.79%
2,850,000 7.250%, 05/15/16......................... 3,259,801
2,000,000 8.000%, 11/15/21......................... 2,510,960
3,000,000 6.250%, 08/15/23......................... 3,126,330
3,500,000 6.875%, 08/15/25......................... 3,947,440
------------
12,844,531
------------
Federal Home Loan Bank - 0.45%
1,000,000 5.890%, 06/30/08......................... 992,240
------------
</TABLE>
See accompanying Notes to Financial Statements.
13
<PAGE>
Alleghany Funds
Alleghany/Montag & Caldwell Balanced Fund
Schedule of Investments - continued (unaudited) April 30, 1999
================================================================================
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- -----
Federal Home Loan
Mortgage Corporation - 2.69%
<S> <C> <C>
$ 750,000 6.400%, 12/13/06, Debenture............... $ 778,245
1,750,000 6.700%, 01/05/07, Global Bond............. 1,831,900
600,000 7.500%, 03/15/07, CMO, Class J............ 618,708
175,000 6.000%, 04/15/08, CMO, Class K............ 175,858
1,750,000 5.125%, 10/15/08.......................... 1,652,752
500,000 6.500%, 07/15/20, CMO, Class F............ 502,520
400,000 6.500%, 11/15/20, CMO, Class H............ 403,480
-----------
5,963,463
-----------
Federal National
Mortgage Association - 2.05%
2,500,000 6.250%, 03/20/00, MTN..................... 2,521,475
2,000,000 7.250%, 01/17/21, CMO, REMIC, Class PE.... 2,040,600
-----------
4,562,075
-----------
Government National
Mortgage Association - 0.00% (A)
1,810 8.500%, 06/15/01.......................... 1,897
1,907 9.000%, 09/15/08.......................... 2,036
-----------
3,933
-----------
Total U.S. Government
and Agency Obligations.................... 38,501,237
-----------
(Cost $38,695,187)
CORPORATE NOTES AND BONDS - 7.26%
Consumer Non-Durables - 2.04%
2,000,000 NIKE, Inc.
6.375%, 12/01/03.......................... 2,025,000
2,500,000 Warner Lambert Co.
5.750%, 01/15/03.......................... 2,503,125
-----------
4,528,125
-----------
Finance - 2.52%
1,500,000 American Express Co., Senior Notes
6.750%, 06/23/04.......................... 1,545,000
55,000 American General Finance, MTN
Senior Notes
7.200%, 07/08/99.......................... 55,200
Finance (continued)
$2,500,000 Citicorp, Subordinated Notes
7.125%, 05/15/06.......................... 2,593,750
1,350,000 Household Finance Corp., MTN
Senior Notes
7.300%, 07/30/12.......................... 1,390,500
-----------
5,584,450
-----------
Medical Products - 0.96%
2,100,000 Amgen, Inc.
6.500%, 12/01/07.......................... 2,134,125
-----------
Retail - 1.51%
500,000 Penney (J.C.) & Co., Debenture
9.750%, 06/15/21.......................... 551,250
2,750,000 Sears Roebuck Acceptance Corp.
6.700%, 11/15/06.......................... 2,794,688
-----------
3,345,938
-----------
Security and Commodity Brokers - 0.23%
500,000 Salomon, Inc.
7.300%, 05/15/02.......................... 518,750
-----------
Total Corporate Notes and Bonds........... 16,111,388
-----------
(Cost $16,113,687)
ASSET-BACKED SECURITIES - 2.04%
1,750,000 Chemical Master Credit Card Trust 1
Series 1996-1, Class A
5.550%, 09/15/03.......................... 1,748,530
1,000,000 Discover Card Master Trust 1
Series 1998-7, Class A
5.600%, 05/15/06.......................... 988,725
1,750,000 First USA Credit Card Master Trust
Series 1997-6, Class A
6.420%, 03/17/05.......................... 1,780,800
-----------
Total Asset-Backed Securities............. 4,518,055
-----------
(Cost $4,548,723)
</TABLE>
14
<PAGE>
Alleghany Funds
Alleghany/Montag & Caldwell Balanced Fund
Schedule of Investments - continued (unaudited) April 30, 1999
================================================================================
<TABLE>
<CAPTION>
Market
Shares Value
- ------ -----
<S> <C>
INVESTMENT COMPANIES - 6.39%
9,396,160 Bankers Trust Institutional
Cash Management Fund.................... $ 9,396,160
4,776,230 Bankers Trust Institutional
Treasury Money Fund..................... 4,776,230
------------
Total Investment Companies.............. 14,172,390
------------
(Cost $14,172,390)
Total Investments - 93.46%.......................... 207,377,533
------------
(Cost $170,818,576)**
Net Other Assets and Liabilities - 6.54%............ 14,521,852
------------
Net Assets - 100.00%................................ $221,899,385
============
- ----------------------------------------------------
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is $170,818,576.
Gross unrealized appreciation................. $ 38,654,539
Gross unrealized depreciation................. (2,095,582)
------------
Net unrealized appreciation................... $ 36,558,957
============
(A) Amount represents less than 0.01%
CMO Collateralized Mortgage Obligation
MTN Medium Term Note
REMIC Real Estate Mortgage Investment Conduit
Portfolio Composition (Moody's Ratings)
- ---------------------
Common Stocks 65%
U.S. Government Obligations 13%
U.S. Government Agency Obligations 5%
Investment Companies 7%
Corporate Notes and Bonds:
Aaa 2%
A 8%
---
100%
===
</TABLE>
See accompanying Notes to Financial Statements.
15
<PAGE>
Alleghany Funds
Alleghany/Chicago Trust Balanced Fund
Schedule of Investments (unaudited) April 30, 1999
================================================================================
<TABLE>
<CAPTION>
Market
Shares Value
- ------ ------
<S> <C>
COMMON STOCKS - 58.71%
Advertising - 1.30%
50,000 Omnicom Group, Inc........................... $ 3,625,000
-----------
Business Services - 1.65%
90,000 Paychex, Inc................................. 4,595,625
-----------
Capital Goods - 1.89%
75,000 Pitney Bowes, Inc............................ 5,245,312
-----------
Chemicals - 1.02%
55,000 Praxair, Inc................................. 2,846,250
-----------
Commercial Services - 1.36%
90,000 Ecolab, Inc.................................. 3,774,375
-----------
Consumer Durables - 5.04%
90,000 Harley-Davidson, Inc......................... 5,366,250
65,000 Illinois Tool Works, Inc..................... 5,005,000
50,000 Johnson Controls, Inc........................ 3,640,625
-----------
14,011,875
-----------
Consumer Non-Durables - 4.31%
70,000 Cintas Corp.................................. 4,812,500
80,000 Newell Rubbermaid, Inc....................... 3,795,000
36,000 Procter & Gamble Co.......................... 3,377,250
-----------
11,984,750
-----------
Electrical - 2.09%
55,000 General Electric Co.......................... 5,802,500
-----------
Finance - 12.15%
80,000 AFLAC Inc.................................... 4,340,000
52,500 American International Group, Inc............ 6,165,469
80,000 Associates First Capital Corp., Class A...... 3,545,000
90,000 Federal Home Loan Mortgage Corp.............. 5,647,500
112,500 MBNA Corp.................................... 3,171,094
60,000 Schwab (Charles) Corp........................ 6,585,000
100,000 Wells Fargo Co............................... 4,318,750
-----------
33,772,813
-----------
Food and Beverage - 2.14%
200,000 Sysco Corp................................... 5,937,500
-----------
Health Care Services - 6.27%
65,000 Cardinal Health, Inc......................... 3,887,813
250,000 Health Management Associates, Inc., Class A * 3,906,250
40,700 McKesson HBOC, Inc........................... 1,424,500
150,000 Omnicare, Inc................................ 3,609,375
40,000 Pfizer, Inc.................................. 4,602,500
-----------
17,430,438
-----------
Medical Supplies - 1.00%
100,000 Sybron International Corp. *................. 2,768,750
-----------
Oil and Gas Extraction - 0.80%
35,000 Schlumberger Limited......................... 2,235,625
-----------
Pharmaceuticals - 0.91%
36,000 Merck & Co., Inc............................. 2,529,000
-----------
Retail - 2.74%
50,000 Kohl's Corp. *............................... 3,321,875
160,000 Walgreen Co.................................. 4,300,000
-----------
7,621,875
-----------
Technology - 10.88%
50,000 Cisco Systems, Inc. *........................ 5,703,125
65,000 Computer Associates International, Inc....... 2,774,687
50,000 Computer Sciences Corp. *.................... 2,978,125
60,000 EMC Corp. *.................................. 6,536,250
50,000 Microsoft Corp. *............................ 4,065,625
70,000 Solectron Corp. *............................ 3,395,000
80,000 Sun Microsystems, Inc. *..................... 4,785,000
-----------
30,237,812
-----------
Telecommunications - 2.17%
55,000 Tellabs, Inc. *.............................. 6,025,937
-----------
Utility - 0.99%
55,000 AES Corp. *.................................. 2,750,000
-----------
Total Common Stocks.......................... 163,195,437
-----------
(Cost $85,883,015)
Par Value
- ---------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 20.71%
U.S. Treasury Notes - 5.24%
$2,000,000 7.875%, 08/15/01............................. 2,117,700
3,000,000 6.375%, 08/15/02............................. 3,101,280
2,000,000 5.750%, 08/15/03............................. 2,037,760
3,500,000 5.875%, 02/15/04............................. 3,591,210
3,500,000 6.500%, 08/15/05............................. 3,710,210
-----------
14,558,160
-----------
U.S. Treasury Bonds - 2.29%
1,500,000 7.125%, 02/15/23............................. 1,726,800
2,500,000 6.250%, 08/15/23............................. 2,605,275
2,000,000 6.000%, 02/15/26............................. 2,029,240
-----------
6,361,315
-----------
</TABLE>
See accompanying Notes to Financial Statements.
16
<PAGE>
Alleghany Funds
Alleghany/Chicago Trust Balanced Fund
Schedule of Investments - continued (unaudited) April 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- ------
<C> <S> <C>
Federal Home Loan
Mortgage Corporation - 3.05%
$3,500,000 5.750%, 07/15/03................................... $ 3,519,075
1,000,000 5.850%, 02/21/06, Debenture........................ 1,004,900
673,549 7.500%, 04/01/08, Debenture, Gold
Pool # E46250...................................... 695,224
754,167 6.500%, 06/01/09, Gold Pool # E59122............... 762,176
2,456,715 6.500%, 01/01/14, Gold Pool # E00619............... 2,482,805
-----------
8,464,180
-----------
Federal National
Mortgage Association - 5.62%
3,500,000 5.625%, 03/15/01................................... 3,521,560
634,567 6.900%, 12/25/03, CMO, Pool # 093-70, REMIC........ 643,166
1,082,375 7.000%, 01/01/13, Pool # 313966.................... 1,106,382
792,109 7.000%, 03/01/13, Pool # 251572.................... 809,678
1,585,395 6.000%, 08/01/13, Pool # 323250.................... 1,572,015
419,677 7.000%, 07/25/17, CMO, Pool # 001993, REMIC........ 18,563
672,873 7.500%, 02/01/23, Pool # 050706.................... 692,219
229,569 9.000%, 05/01/25, Pool # 250239.................... 243,630
1,337,631 6.500%, 12/01/27, Pool # 402846.................... 1,330,100
639,309 6.500%, 02/01/28, Pool # 398205.................... 635,710
2,322,683 7.000%, 08/01/28, Pool # 437140.................... 2,355,340
1,215,236 6.500%, 09/01/28, Pool # 430877.................... 1,208,394
1,498,568 6.500%, 03/01/29, Pool # 489367.................... 1,490,131
-----------
15,626,888
-----------
Government National
Mortgage Association - 4.51%
307,387 7.000%, 06/15/08, Pool # 348818.................... 315,840
2,000,000 7.000%, 12/15/11, Pool # 781011.................... 2,056,240
506,047 8.000%, 03/15/17, Pool # 207880.................... 527,867
577,615 8.000%, 06/15/17, Pool # 191897.................... 602,522
1,224,689 7.000%, 09/15/23, Pool # 361807.................... 1,244,199
608,641 7.000%, 10/15/23, Pool # 345894.................... 618,337
793,076 7.000%, 10/15/23, Pool # 370850.................... 805,710
1,265,133 6.500%, 03/15/26, Pool # 422527.................... 1,258,011
290,470 7.500%, 06/15/27, Pool # 446811.................... 299,547
1,436,466 7.500%, 06/15/27, Pool # 447652.................... 1,481,356
864,197 6.500%, 08/15/27, Pool # 780615.................... 859,876
431,914 7.500%, 07/15/28, Pool # 464709.................... 445,411
1,998,156 7.000%, 03/15/29, Pool # 505567.................... 2,029,986
-----------
12,544,902
-----------
Total U.S. Government and Agency Obligations....... 57,555,445
-----------
(Cost $57,070,730)
CORPORATE NOTES AND BONDS - 12.49%
Cable Television - 0.30%
$ 700,000 Continental Cablevision, Senior Debenture
9.500%, 08/01/13................................... $ 822,500
-----------
Energy - 1.53%
1,700,000 Ashland, Inc., Senior Notes
6.625%, 02/15/08................................... 1,674,500
1,500,000 Thermo Electron Corp.
Subordinated Debenture
4.250%, 01/01/03 (A)............................... 1,329,375
1,250,000 Williams Co., Inc.
5.950%, 02/15/00 (A)............................... 1,245,313
-----------
4,249,188
-----------
Finance - 5.29%
1,250,000 Advanta Corp., MTN
7.000%, 05/01/01................................... 1,164,063
600,000 Arcadia Financial Ltd.
11.500%, 03/15/07.................................. 486,000
1,250,000 Chelsea GCA Realty Partnership, REIT
7.250%, 10/21/07................................... 1,167,187
1,000,000 Continental Corp.
7.250%, 03/01/03................................... 1,015,000
1,000,000 DVI, Inc., Senior Notes
9.875%, 02/01/04................................... 992,500
2,000,000 HSBC America Capital II
8.380%, 05/15/27 (A)............................... 2,065,000
1,000,000 Leucadia National Corp.
Senior Subordinated Notes
8.250%, 06/15/05................................... 1,005,000
1,000,000 Leucadia National Corp.
Senior Subordinated Notes
7.875%, 10/15/06................................... 990,000
2,000,000 Metropolitan Life Insurance Co.
6.300%, 11/01/03 (A)............................... 1,982,500
1,000,000 Pacific Mutual Life Insurance Co.
7.900%, 12/30/23 (A)............................... 1,101,250
1,500,000 Prudential Insurance Co. of America
7.650%, 07/01/07 (A)............................... 1,603,125
1,000,000 Prudential Insurance Co. of America
8.300%, 07/01/25 (A)............................... 1,143,750
-----------
14,715,375
-----------
Food and Beverage - 0.63%
1,000,000 Nabisco, Inc.
6.700%, 06/15/02................................... 1,010,000
750,000 Nabisco, Inc.
6.850%, 06/15/05................................... 752,813
-----------
1,762,813
-----------
</TABLE>
17
<PAGE>
Alleghany Funds
Alleghany/Chicago Trust Balanced Fund
Schedule of Investments - continued (unaudited) April 30, 1999
================================================================================
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- -----
<S> <C>
Health Care Services - 1.18%
$1,500,000 HealthSouth Corp., Senior Notes
6.875%, 06/15/05................................ $ 1,464,375
1,100,000 Hospital Corp. of America, Debenture
6.049%, 06/01/00 (B)............................ 968,000
1,000,000 Tenet Healthcare Corp.
Subordinated Notes
6.000%, 12/01/05................................ 835,000
-----------
3,267,375
-----------
Printing and Publishing - 0.57%
1,500,000 News America Holdings Inc.
Senior Debenture
7.750%, 02/01/24................................ 1,571,250
-----------
Retail - 1.02%
1,250,000 Kmart Corp., Debenture
7.950%, 02/01/23................................ 1,271,875
2,975,000 Pep Boys - Manny, Moe & Jack
3.031%, 09/20/11 (B)............................ 1,576,750
-----------
2,848,625
-----------
Telecommunications - 0.70%
2,000,000 AT&T Corp.
6.000%, 03/15/09................................ 1,955,000
-----------
Transportation - 0.15%
391,034 Delta Air Lines Equipment Trust
Series 1992-A
8.540%, 01/02/07................................ 419,074
-----------
Utilities - 1.12%
1,000,000 Gulf States Utilities, First Mortgage
Series A
8.250%, 04/01/04................................ 1,080,000
1,000,000 Niagara Mohawk Power Corp.
Series F, Senior Notes
7.625%, 10/01/05................................ 1,040,000
1,000,000 Philadelphia Electric Co., First Mortgage
5.625%, 11/01/01................................ 996,250
-----------
3,116,250
-----------
Total Corporate Notes and Bonds................. 34,727,450
-----------
(Cost $34,577,186)
YANKEE BONDS - 1.83%
$ 750,000 Chilgener S.A. Yankee (Chile)
6.500%, 01/15/06................................ $ 714,375
1,500,000 DR Investment Corp., Senior Notes
7.450%, 05/15/07 (A)............................ 1,578,750
1,000,000 Petroliam Nasional Berhad
7.625%, 10/15/26 (A)............................ 886,250
681,419 Province of Mendoza
Collateral Oil Royalty Note
10.000%, 07/25/02 (A)........................... 674,605
1,250,000 Skandinaviska Enskilda
Subordinated Notes
6.625%, 03/29/49 (A)............................ 1,231,250
-----------
Total Yankee Bonds.............................. 5,085,230
-----------
(Cost $4,849,066)
ASSET-BACKED SECURITIES - 1.70%
2,000,000 Chemical Master Credit Card Trust I
Series 1996-1, Class A
5.550%, 09/15/03................................ 1,998,320
1,000,000 Citibank Credit Card Master Trust I
Series 1997-3, Class A
6.839%, 02/10/04................................ 1,001,650
1,708,696 DVI Receivables Corp.
Series 1998-1, Class A2
6.035%, 04/10/06 (A)............................ 1,715,904
-----------
Total Asset-Backed Securities................... 4,715,874
-----------
(Cost $4,685,606)
NON-AGENCY/CMO MORTGAGE SECURITIES - 1.49%
1,000,000 BA Mortgage Securities, CMO, REMIC
Series 1997-1, Class A4
7.350%, 07/25/26................................ 1,008,633
1,500,000 GE Capital Mortgage Services, Inc., CMO, REMIC
Series 1998-9, Class A15
6.500%, 06/25/28 (C)............................ 1,508,790
600,000 Midland Realty Acceptance Corp., CMO
Series 1996-C001, Class A2
7.475%, 08/25/28 (C)............................ 618,375
1,000,000 Morgan (J.P.) Commercial Mortgage Finance Corp.
Series 1997-C7, Class A2, CMO
6.507%, 10/15/35 (C)............................ 1,010,030
-----------
Total Non-Agency/CMO
Mortgage Securities............................. 4,145,828
-----------
(Cost $4,121,249)
</TABLE>
See accompanying Notes to Financial Statements.
18
<PAGE>
Alleghany Funds
Alleghany/Chicago Trust Balanced Fund
Schedule of Investments - continued (unaudited) April 30, 1999
================================================================================
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- -----
<S> <C>
REPURCHASE AGREEMENT - 2.55%
$ 7,080,000 First Chicago
4.850%, dated 04/30/99 to be repurchased
on 05/03/99 at $7,082,862
(Collateralized by U.S. Treasury Notes
6.250% due 04/30/01 and 10/31/01;
Total Par $7,040,000)................... $ 7,080,000
------------
Total Repurchase Agreement.............. 7,080,000
------------
(Cost $7,080,000)
Total Investments - 99.48%........................... 276,505,264
------------
(Cost $198,266,852)**
Net Other Assets and Liabilities - 0.52%............. 1,437,389
------------
Net Assets - 100.00%................................. $277,942,653
============
- ----------------
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is $198,266,852.
Gross unrealized appreciation.................. $ 81,826,658
Gross unrealized depreciation.................. (3,588,246)
------------
Net unrealized appreciation.................... $ 78,238,412
============
</TABLE>
(A) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold, in transactions exempt from
registration, to qualified institutional buyers. At April 30, 1999, these
securities amounted to $16,557,072 or 5.96% of net assets.
(B) Annualized yield at time of purchase.
(C) Standard & Poor's (S&P) credit ratings are used in the absense of a
rating by Moody's Investors, Inc.
CMO Collateralized Mortgage Obligation
MTN Medium Term Note
REIT Real Estate Investment Trust
REMIC Real Estate Mortgage Investment Conduit
<TABLE>
<CAPTION>
Portfolio Composition (Moody's Ratings)
- ---------------------
<S> <C>
Common Stocks 59%
Repurchase Agreement 3%
U.S. Government Obligations 8%
U.S. Government Agency Obligations 13%
Corporate Notes and Bonds:
Aaa 2%
A 4%
Baa 6%
Ba 3%
B 1%
NR 1%
---
100%
===
</TABLE>
See accompanying Notes to Financial Statements.
19
<PAGE>
Alleghany Funds
Alleghany/Chicago Trust Bond Fund
Schedule of Investments (unaudited) April 30, 1999
================================================================================
<TABLE>
<CAPTION>
Market
Par Value Value
- ----------- ------
<S> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 55.23%
U.S. Treasury Notes - 18.65%
$5,000,000 7.125%, 02/29/00........................ $ 5,088,900
2,500,000 7.875%, 08/15/01........................ 2,647,125
2,500,000 6.250%, 10/31/01........................ 2,565,275
5,000,000 6.375%, 08/15/02........................ 5,168,800
5,000,000 5.750%, 08/15/03........................ 5,094,400
4,000,000 7.250%, 05/15/04........................ 4,344,200
5,000,000 6.125%, 08/15/07........................ 5,225,550
-----------
30,134,250
-----------
U.S. Treasury Bonds - 8.83%
2,000,000 7.500%, 05/15/02........................ 2,128,060
2,500,000 7.125%, 02/15/23........................ 2,878,000
5,000,000 6.250%, 08/15/23........................ 5,210,550
4,000,000 6.000%, 02/15/26........................ 4,058,480
-----------
14,275,090
-----------
Federal Home Loan
Mortgage Corporation - 8.09%
3,000,000 5.750%, 07/15/03........................ 3,016,350
2,500,000 5.850%, 02/21/06, Debenture............. 2,512,250
500,000 5.750%, 01/15/08, CMO, Pool # 001606.... 496,585
1,005,556 6.500%, 06/01/09, Pool # E59122......... 1,016,235
5,500,000 6.000%, 11/15/10, CMO, Pool # 002115.... 718,190
1,207,920 6.500%, 01/01/11, Gold Pool # E00413.... 1,220,748
1,103,738 6.500%, 11/01/11, Gold Pool # G10607.... 1,115,460
2,948,058 6.500%, 01/01/14, Gold Pool # E00619.... 2,979,366
-----------
13,075,184
-----------
Federal National
Mortgage Association - 13.13%
3,000,000 5.625%, 03/15/01........................ 3,018,480
846,090 6.900%, 12/25/03, CMO, Pool # 093-70, 857,554
REMIC 920,182 7.000%, 05/01/12, Pool # 376058... 940,592
1,803,959 7.000%, 01/01/13, Pool # 313966......... 1,843,970
1,188,164 7.000%, 03/01/13, Pool # 251572......... 1,214,517
2,822,748 6.000%, 06/01/13, Pool # 429584......... 2,798,924
2,424,722 6.000%, 08/01/13, Pool # 323250......... 2,404,257
1,108,432 7.500%, 07/01/23, Pool # 226065......... 1,140,299
367,311 9.000%, 05/01/25, Pool # 250239......... 389,808
736,210 6.500%, 02/01/26, Pool # 336922......... 732,065
1,944,378 6.500%, 09/01/28, Pool # 430877......... 1,933,431
2,971,427 6.500%, 10/01/28, Pool # 442329......... 2,954,698
999,046 6.500%, 03/01/29, Pool # 489367......... 993,421
-----------
21,222,016
-----------
Government National
Mortgage Association - 6.53%
577,615 8.000%, 06/15/17, Pool # 191897......... 602,522
1,065,122 7.000%, 10/15/23, Pool # 345894......... 1,082,090
1,057,435 7.000%, 10/15/23, Pool # 370850......... 1,074,280
1,265,133 6.500%, 03/15/26, Pool # 422527......... 1,258,011
1,178,803 7.000%, 06/15/27, Pool # 780584......... 1,198,324
985,935 7.000%, 08/20/27, Pool # 002471......... 997,332
1,169,406 6.500%, 09/20/27, Pool # 002482......... 1,157,712
1,122,976 7.500%, 07/15/28, Pool # 464709......... 1,158,069
1,998,156 7.000%, 03/15/29, Pool # 505567......... 2,029,986
-----------
10,558,326
-----------
Total U.S. Government
and Agency Obligations.................. 89,264,866
-----------
(Cost $89,769,367)
CORPORATE NOTES AND BONDS - 26.73%
Cable Television - 1.09%
1,500,000 Continental Cablevision, Senior Debenture
9.500%, 08/01/13........................ 1,762,500
-----------
Energy - 3.55%
2,000,000 Ashland, Inc.
6.625%, 02/15/08........................ 1,970,000
2,000,000 Thermo Electron Corp.
Subordinated Debenture
4.250%, 01/01/03 (A).................... 1,772,500
2,000,000 Williams Co., Inc.
5.950%, 02/15/00 (A).................... 1,992,500
-----------
5,735,000
-----------
Finance - 9.82%
2,000,000 Advanta Corp., MTN
7.000%, 05/01/01........................ 1,862,500
1,000,000 Arcadia Financial Ltd.
11.500%, 03/15/07....................... 810,000
2,000,000 Chelsea GCA Realty Partnership, REIT
7.250%, 10/21/07........................ 1,867,500
1,500,000 Continental Corp.
7.250%, 03/01/03........................ 1,522,500
800,000 DVI, Inc., Senior Notes
9.875%, 02/01/04........................ 794,000
2,000,000 HSBC America Capital II
8.380%, 05/15/27 (A).................... 2,065,000
1,000,000 Leucadia National Corp.
Senior Subordinated Notes
8.250%, 06/15/05........................ 1,005,000
2,000,000 Metropolitan Life Insurance Co.
6.300%, 11/01/03 (A).................... 1,982,500
1,520,000 Pacific Mutual Life Insurance Co.
7.900%, 12/30/23 (A).................... 1,673,900
2,000,000 Prudential Insurance Co. of America
8.300%, 07/01/25 (A).................... 2,287,500
-----------
15,870,400
-----------
</TABLE>
See accompanying Notes to Financial Statements.
20
<PAGE>
Alleghany Funds
Alleghany/Chicago Trust Bond Fund
Schedule of Investments - continued (unaudited) April 30, 1999
================================================================================
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- -----
<S> <C> <C>
Food and Beverage - 1.71%
$2,750,000 Nabisco, Inc.
6.850%, 06/15/05............................. $ 2,760,313
-----------
Healthcare Services - 2.61%
1,300,000 Columbia Healthcare Corp.
6.125%, 12/15/00............................. 1,262,625
1,750,000 HealthSouth Corp., Senior Notes
6.875%, 06/15/05............................. 1,708,438
1,500,000 Tenet Healthcare Corp.
6.000%, 12/01/05............................. 1,252,500
-----------
4,223,563
-----------
Printing and Publishing - 0.97%
1,500,000 News America Holdings
7.750%, 01/20/24............................. 1,569,375
-----------
Retail - 2.15%
1,950,000 Kmart Corp., Debenture
7.950%, 02/01/23............................. 1,984,125
2,800,000 Pep Boys - Manny, Moe & Jack
3.031%, 09/20/11 (B)......................... 1,484,000
-----------
3,468,125
-----------
Telecommunications - 0.91%
1,500,000 AT&T Corp.
6.000%, 03/15/09............................. 1,466,250
-----------
Transportation - 0.39%
391,034 Delta Air Lines, Inc.
Equipment Trust, Series 1992A
8.540%, 01/02/07............................. 419,074
184,925 Delta Air Lines, Inc.
9.375%, 09/11/07............................. 202,994
-----------
622,068
-----------
Utilities - 3.53%
2,000,000 Gulf States Utilities, First Mortgage, Series A
8.250%, 04/01/04............................. 2,160,000
1,500,000 Niagara Mohawk Power
Series F, Senior Notes
7.625%, 10/01/05............................. 1,560,000
2,000,000 Philadelphia Electric Co., First Mortgage
5.625%, 11/01/01............................. 1,992,500
-----------
5,712,500
-----------
Total Corporate Notes and Bonds.............. 43,190,094
-----------
(Cost $42,788,649)
YANKEE BONDS - 4.49%
$ 675,000 Chilgener S.A. Yankee (Chile)
6.500%, 01/15/06............................. $ 642,937
2,250,000 DR Investment Corp., Senior Notes
7.450%, 05/15/07 (A)......................... 2,368,125
1,200,000 Petroliam Nasional Berhad
7.625%, 10/15/26 (A)......................... 1,063,500
1,227,422 Province of Mendoza
Collateral Oil Royalty Note
10.000%, 07/25/02 (A)........................ 1,215,148
2,000,000 Skandinaviska Enskilda, Subordinated Notes
6.625%, 03/29/49 (A)......................... 1,970,000
-----------
Total Yankee Bonds........................... 7,259,710
-----------
(Cost $6,974,838)
ASSET-BACKED SECURITIES - 3.12%
2,500,000 Chemical Master Credit Card Trust I
Series 1996-1, Class A
5.550%, 09/15/03............................. 2,497,900
750,000 Citibank Master Credit Card Trust I
Series 1997-3, Class A
6.839%, 02/10/04............................. 751,237
1,780,148 DVI Receivables Corp., Series 1998-1
Class A2
6.035%, 04/10/06 (A)......................... 1,787,658
-----------
Total Asset-Backed Securities................ 5,036,795
-----------
(Cost $4,978,326)
NON-AGENCY/CMO MORTGAGE SECURITIES - 3.37%
1,750,000 BA Mortgage Securities, CMO, REMIC
Series 1997-1, Class A4
7.350%, 07/25/26............................. 1,765,107
1,500,000 GE Capital Mortgage Services, Inc., CMO, REMIC
Series 1998-9, Class A15
6.500%, 06/25/28 (C)......................... 1,508,790
875,000 Midland Realty Acceptance Corp., CMO
Series 1996-C001, Class A2
7.475%, 08/25/28 (C)......................... 901,797
1,250,000 Morgan (J.P.) Commercial Mortgage Finance Corp.
Series 1997-C7, Class A2, CMO
6.507%, 10/15/35 (C)......................... 1,262,537
-----------
Total Non-Agency/CMO
Mortgage Securities.......................... 5,438,231
-----------
(Cost $5,400,526)
</TABLE>
See accompanying Notes to Financial Statements
21
<PAGE>
Alleghany Funds
Alleghany/Chicago Trust Bond Fund
Schedule of Investments - continued (unaudited) April 30, 1999
================================================================================
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- -----
<S> <C> <C>
REPURCHASE AGREEMENT - 5.98%
$ 9,663,000 First Chicago
4.850%, dated 04/30/99 to be repurchased
on 05/03/99 at $9,666,905
(Collateralized by U.S. Treasury Note
6.250% due 10/31/01;
Total Par $9,608,000)..................... $ 9,663,000
------------
Total Repurchase Agreement................ 9,663,000
------------
(Cost $9,663,000)
Total Investments - 98.92%............................. 159,852,696
------------
(Cost $159,574,706)*
Net Other Assets and Liabilities - 1.08%............... 1,750,393
------------
Net Assets - 100.00%................................... $161,603,089
============
* Aggregate cost for Federal income tax purposes is $159,574,706.
Gross unrealized appreciation....................... $ 2,332,122
Gross unrealized depreciation....................... (2,054,132)
------------
Net unrealized appreciation......................... $ 277,990
============
</TABLE>
(A) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold, in transactions exempt from
registration, to qualified institutional buyers. At April 30, 1999, these
securities amounted to $20,178,331 or 12.49% of net assets.
(B) Annualized yield at time of purchase.
CMO Collateralized Mortgage Obligation
MTN Medium Term Note
REIT Real Estate Investment Trust
REMIC Real Estate Mortgage Investment Conduit
<TABLE>
<CAPTION>
Portfolio Composition (Moody's Ratings)
- ---------------------
<S> <C>
Repurchase Agreement 6%
U.S. Government Obligations 28%
U.S. Government Agency Obligations 28%
Corporate Notes and Bonds:
Aaa 5%
A 7%
Baa 15%
Ba 6%
B 3%
NR 2%
---
100%
===
</TABLE>
See accompanying Notes to Financial Statements.
22
<PAGE>
Alleghany Funds
Alleghany/Chicago Trust Municipal Bond Fund
Schedule of Investments (unaudited) April 30, 1999
================================================================================
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- -----
MUNICIPAL SECURITIES - 97.23%
<S> <C> <C>
Alaska - 1.70%
$ 280,000 Anchorage, Alaska, G.O.
5.000%, 07/01/13........................... $ 289,041
----------
Arizona - 5.98%
300,000 Phoenix, Series 1999, G.O.
5.250%, 07/01/12........................... 316,731
450,000 Salt River Project Electric System
Revenue Refunding, Series A
5.500%, 01/01/05........................... 482,850
200,000 Tucson, Arizona Water Revenue
5.400%, 07/01/05........................... 214,632
----------
1,014,213
----------
California - 1.57%
250,000 California State
5.250%, 10/01/10........................... 265,625
----------
Florida - 4.93%
265,000 Dade County, Florida State
School District, G.O.
5.000%, 07/15/02
Insured: MBIA.............................. 275,846
250,000 Hillsborough County, G.O.
5.000%, 07/01/11
Insured: MBIA.............................. 260,765
300,000 Manatee County Pollution Control Revenue
Florida Power & Light Co. Project
2.800%, 09/01/24 (B)....................... 300,000
----------
836,611
----------
Georgia - 5.09%
330,000 Atlanta Water and Waste Revenue
Series A
5.000%, 11/01/09
Insured: FGIC.............................. 346,368
250,000 State of Georgia, Series A, G.O.
6.100%, 03/01/05........................... 277,303
200,000 State of Georgia, Series D, G.O.
6.700%, 08/01/09........................... 239,536
----------
863,207
----------
Illinois - 4.88%
200,000 Chicago Emergency Telephone System, G.O.
5.250%, 01/01/12
Insured: FGIC.............................. 210,250
250,000 Cook County, Illinois, Series A, G.O.
5.000%, 11/15/15
Insured: FGIC.............................. 250,975
350,000 State of Illinois, G.O.
5.000%, 03/01/08........................... 366,390
----------
827,615
----------
Michigan - 5.09%
$300,000 Clarkston Community Schools
5.000%, 05/01/06
Insured: AMBAC............................. $ 315,639
250,000 Michigan State Trunk Line, Series A
5.500%, 11/01/16........................... 270,100
260,000 Utica Community Schools
5.375%, 05/01/04
Insured: FGIC.............................. 277,217
----------
862,956
----------
Minnesota - 4.21%
245,000 Minneapolis & St. Paul Housing
Finance Board Revenue
5.050%, 11/01/07 (A)....................... 253,592
250,000 Minneapolis & St. Paul Metropolitan
Airport Revenue, Series B
5.250%, 01/01/15
Insured: AMBAC............................. 256,038
200,000 Shakopee Independent
School District, G.O.
4.500%, 02/01/06........................... 204,606
----------
714,236
----------
Nebraska - 4.08%
200,000 American Public Energy Agency
Revenue, Series A
4.250%, 06/01/06
Insured: AMBAC............................. 199,932
250,000 American Public Energy Agency
Revenue, Series C
4.300%, 03/01/11
Insured: AMBAC............................. 240,658
250,000 Nebraska Public Power District
Revenue, Series A
5.000%, 01/01/15
Insured: MBIA.............................. 251,938
----------
692,528
----------
Nevada - 4.09%
350,000 Clark County, Nevada School District, G.O.
6.400%, 06/15/06
Insured: FGIC.............................. 396,515
300,000 State of Nevada, G.O.
Real Property Corp. Certificates
4.375%, 07/01/09........................... 297,432
----------
693,947
----------
New Hampshire - 1.48%
250,000 New Hampshire State Housing Finance
Authority Single Family Revenue, Series B
4.850%, 07/01/08........................... 251,105
----------
</TABLE>
23
<PAGE>
Alleghany Funds
Alleghany/Chicago Trust Municipal Bond Fund
Schedule of Investments - continued (unaudited) April 30, 1999
================================================================================
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- -----
<S> <C>
New Jersey - 3.67%
$ 250,000 State of New Jersey, G.O.
5.000%, 02/01/06............................ $ 263,365
350,000 State of New Jersey Transportation
Trust Fund Revenue, Series A
Escrowed to Maturity
5.200%, 12/15/00
Insured: AMBAC.............................. 359,797
----------
623,162
----------
New York - 7.92%
300,000 Municipal Assistance Corporation for NYC
Revenue, Series O
5.250%, 07/01/08............................ 321,039
250,000 New York, Series F, G.O.
4.300%, 08/01/08............................ 247,072
250,000 New York City Municipal Water Finance
Authority Revenue, Series A
5.000%, 06/15/27............................ 242,100
250,000 New York City Transitional Finance
Authority Revenue
5.500%, 08/15/08............................ 272,023
250,000 New York State Dormitory Authority
Revenue, Series C
5.100%, 05/15/03............................ 260,780
----------
1,343,014
----------
North Carolina - 1.76%
300,000 Durham, G.O.
4.700%, 04/01/14............................ 299,382
----------
Ohio - 2.77%
250,000 Ohio State Highway Capital
Improvement, Series C, G.O.
5.000%, 05/01/07............................ 264,082
200,000 Ohio State Public Facilities Commission
(Higher Education), Series II-A
5.200%, 05/01/01
Insured: AMBAC.............................. 206,216
----------
470,298
----------
Oregon - 1.57%
250,000 Portland, Oregon Series A, G.O.
7.000%, 06/01/01............................ 267,160
----------
Pennsylvania - 1.28%
215,000 Pennsylvania Housing Finance Agency
Single Family Mortgage, Series 47
5.000%, 10/01/09............................ 217,606
----------
Puerto Rico - 2.61%
$400,000 Commonwealth of Puerto Rico
Series A, G.O.
6.500%, 07/01/03
Insured: MBIA............................... $ 442,476
----------
Tennessee - 3.27%
270,000 Johnson City Water and Sewer, G.O.
5.250%, 06/01/10
Insured: FGIC............................... 288,608
250,000 Memphis, G.O.
General Improvement, Series B
5.250%, 10/01/10............................ 266,705
----------
555,313
----------
Texas - 7.27%
245,000 Denton Independent School District
Refunding, G.O.
5.000%, 02/15/12............................ 253,781
200,000 Humble Independent School District
Refunding, G.O.
5.500%, 02/15/10............................ 216,490
250,000 Lubbock, G.O.
4.550%, 02/15/12............................ 246,198
280,000 Lubbock Independent School District
Refunding, G.O.
5.000%, 02/15/09............................ 292,664
210,000 Tarrant County Health Facilities
Development Corp.
Health System Revenue, Series A
5.500%, 02/15/05
Insured: MBIA............................... 223,837
----------
1,232,970
----------
Utah - 6.28%
300,000 Intermountain Power Agency
Power Supply Revenue
6.250%, 07/01/07
Insured: FSA................................ 339,588
350,000 Tooele County, Utah Hazardous Waste
Treatment Revenue
5.700%, 11/01/26............................ 347,120
350,000 Utah State Building Ownership Authority
Lease Revenue, Series A
State Facilities Master Lease PG-C
5.500%, 05/15/11
Insured: FSA................................ 378,364
----------
1,065,072
----------
</TABLE>
See accompanying Notes to Financial Statements.
24
<PAGE>
Alleghany Funds
Alleghany/Chicago Trust Municipal Bond Fund
Schedule of Investments - continued (unaudited) April 30, 1999
================================================================================
<TABLE>
<CAPTION>
Market
Par Value Value
- --------- -----
<S> <C>
Virginia - 6.33%
$ 250,000 Henrico County Industrial Redevelopment
Authority Revenue
5.300%, 12/01/11.......................... $ 249,740
300,000 Newport News, Series B, G.O.
4.750%, 03/01/11.......................... 303,645
250,000 Virginia State Housing Development
Authority Commonwealth Mortgage
Series H
4.750%, 07/01/07.......................... 252,685
250,000 Virginia State Public School
Authority Revenue
5.500%, 08/01/03.......................... 268,615
-----------
1,074,685
-----------
Washington - 3.02%
475,000 King County, Washington, Series A, G.O.
5.800%, 01/01/04.......................... 512,634
-----------
Wisconsin - 6.38%
500,000 Green Bay, Series A, G.O.
5.100%, 04/01/00.......................... 508,320
250,000 State of Wisconsin, Series A, G.O.
5.750%, 05/01/04.......................... 270,777
300,000 Wisconsin Housing & Economic Development
Authority Home Ownership Revenue
Series A
5.375%, 09/01/17.......................... 304,176
-----------
1,083,273
-----------
Total Municipal Securities................ 16,498,129
-----------
(Cost $16,169,491)
Market
Par Value Value
- --------- -----
INVESTMENT COMPANIES - 1.61%
126,797 Goldman Sachs Tax Exempt Fund............. $ 126,797
147,299 Provident Money Market.................... 147,299
-----------
Total Investment Companies................ 274,096
-----------
(Cost $274,096)
Total Investments - 98.84%........................... 16,772,225
-----------
(Cost $16,443,587)*
Net Other Assets and Liabilities - 1.16%............. 196,419
-----------
Net Assets - 100.00%................................. $16,968,644
===========
</TABLE>
- -------------------------------------------------------
* Aggregate cost for Federal income tax purposes is $16,443,587.
(A) Standard & Poor's (S&P) credit ratings are used in the absence of a
rating by Moody's Investors, Inc.
(B) Annualized yield at time of purchase.
<TABLE>
<CAPTION>
<S> <C>
Gross unrealized appreciation................. $ 372,764
Gross unrealized depreciation................. (44,126)
-----------
Net unrealized appreciation................... $ 328,638
===========
</TABLE>
AMBAC American Municipal Board Assurance Corp.
FGIC Federal Guaranty Insurance Corp.
FSA Fund Services Associates
G.0. General Obligation
MBIA Municipal Bond Insurance Corporation
<TABLE>
<CAPTION>
Portfolio Composition (Moody's Ratings)
- ---------------------
<S> <C>
Investment Companies 2%
Corporate Notes and Bonds:
Aaa 45%
Aa 44%
A 6%
Baa 3%
---
100%
===
</TABLE>
See accompanying Notes to Financial Statements
25
<PAGE>
Alleghany Funds
Alleghany/Chicago Trust Money Market Fund
Schedule of Investments (unaudited) April 30, 1999
================================================================================
<TABLE>
<CAPTION>
Amortized
Par Value Cost
- --------- ------------
<S> <C>
COMMERCIAL PAPER - 92.52%
$10,000,000 Duke Energy
5.069%, 05/03/99 (A)................... $ 9,997,222
4,000,000 General Electric Capital Corp.
4.871%, 05/03/99....................... 4,000,000
4,500,000 Heller Financial, Inc.
4.995%, 05/03/99....................... 4,500,000
3,500,000 Household Finance Corp.
4.823%, 05/03/99....................... 3,500,000
5,000,000 Deere & Co.
4.813%, 05/04/99....................... 5,000,000
5,000,000 Hertz Corp.
4.887%, 05/04/99 (A)................... 4,997,992
4,000,000 Baxter International, Inc.
4.958%, 05/05/99 (A)................... 3,997,827
4,000,000 CIT Group Holdings
4.873%, 05/05/99....................... 4,000,000
3,500,000 Prudential Funding Corp.
4.796%, 05/05/99....................... 3,500,000
7,000,000 American General Finance
4.839%, 05/06/99....................... 7,000,000
5,000,000 Ford Motor Credit Corp.
4.826%, 05/06/99....................... 5,000,000
3,500,000 International Lease Finance Corp.
4.887%, 05/06/99 (A)................... 3,497,657
7,000,000 Commercial Credit Co.
4.824%, 05/07/99....................... 7,000,000
5,000,000 Hertz Corp.
4.897%, 05/07/99 (A)................... 4,995,975
4,500,000 Ford Motor Credit Corp.
4.818%, 05/10/99....................... 4,500,000
5,000,000 Norwest Financial, Inc.
4.781%, 05/10/99....................... 5,000,000
5,000,000 Ford Motor Credit Corp.
4.871%, 05/11/99....................... 5,000,000
7,000,000 GTE Corp.
4.897%, 05/11/99 (A)................... 6,990,608
3,000,000 Commercial Credit Co.
4.819%, 05/12/99....................... 3,000,000
4,000,000 Sears Roebuck Acceptance Corp.
4.887%, 05/12/99....................... 4,000,000
3,000,000 AON Corp.
4.907%, 05/13/99 (A)................... 2,995,160
3,000,000 Coca-Cola Co.
4.867%, 05/13/99 (A)................... 2,995,200
6,000,000 Duke Capital Corp.
4.917%, 05/14/99 (A)................... 5,989,492
5,500,000 GTE Corp.
4.948%, 05/14/99 (A)................... 5,490,308
6,000,000 AON Corp.
4.917%, 05/17/99 (A)................... 5,987,067
2,000,000 Associates First Capital Corp.
4.841%, 05/18/99....................... 2,000,000
4,500,000 Baxter International, Inc.
4.887%, 05/18/99 (A)................... 4,489,757
6,000,000 Toys `R' Us, Inc.
4.867%, 05/18/99 (A)................... 5,986,400
6,000,000 Prudential Funding Corp.
4.811%, 05/19/99....................... 6,000,000
6,000,000 Transamerica Finance Group
4.867%, 05/19/99 (A)................... 5,985,600
5,000,000 Baxter International, Inc.
5.008%, 05/20/99 (A)................... 4,987,307
6,000,000 Duke Capital Corp.
4.917%, 05/20/99 (A)................... 5,984,737
4,000,000 Commercial Credit Co.
4.821%, 05/21/99....................... 4,000,000
5,000,000 Prudential Funding Corp.
4.798%, 05/21/99....................... 5,000,000
5,000,000 General Motors Acceptance Corp.
4.824%, 05/24/99....................... 5,000,000
4,500,000 Hertz Corp.
4.838%, 05/24/99....................... 4,500,000
2,000,000 GTE Corp.
4.897%, 05/25/99 (A)................... 1,993,560
7,500,000 Transamerica Finance Group
4.938%, 05/25/99 (A)................... 7,475,650
6,000,000 Sears Roebuck Acceptance Corp.
4.836%, 05/26/99....................... 6,000,000
2,000,000 General Electric Capital Corp.
4.880%, 05/27/99....................... 2,000,000
5,000,000 Coca-Cola Co.
4.887%, 05/28/99 (A)................... 4,981,925
5,000,000 Daimler Chrysler
4.917%, 05/28/99....................... 5,000,000
4,000,000 Heller Financial, Inc.
4.962%, 06/01/99....................... 4,000,000
5,000,000 Toys `R' Us, Inc.
4.873%, 06/01/99 (A)................... 4,979,333
5,500,000 General Electric Capital Corp.
4.828%, 06/02/99....................... 5,500,000
5,000,000 Associates Corp. of North America
4.823%, 06/03/99....................... 5,000,000
7,000,000 American Express Credit Corp.
4.793%, 06/04/99....................... 7,000,000
4,400,000 Heller Financial, Inc.
4.962%, 06/07/99....................... 4,400,000
5,000,000 American Express Credit Corp.
4.809%, 06/10/99....................... 5,000,000
6,000,000 Canadian Imperial Bank
4.820%, 06/15/99....................... 6,000,000
5,000,000 General Motors Acceptance Corp.
8.400%, 10/15/99....................... 5,062,705
------------
Total Commercial Paper................. 251,261,482
============
(Cost $251,261,482)
</TABLE>
See accompanying Notes to Financial Statements.
26
<PAGE>
Alleghany Funds
Alleghany/Chicago Trust Money Market Fund
Schedule of Investments - continued (unaudited) April 30, 1999
================================================================================
<TABLE>
<CAPTION>
Amortized
Par Value Cost
- --------- ----
<S> <C>
GIC WITHIN FUNDING AGREEMENT - 3.68%
$10,000,000 Allstate Life Funding Agreement GIC
5.007%, 12/01/99....................... $ 10,000,000
------------
Total GIC Within
Funding Agreement...................... 10,000,000
------------
(Cost $10,000,000)
REPURCHASE AGREEMENT - 4.10%
11,122,000 BankAmerica
4.850%, dated 04/30/99 to be repurchased
on 05/03/99 at $11,126,495
(Collateralized by U.S. Treasury Bill
4.475%, due 10/07/99;
Total Par $11,580,000)................. 11,122,000
------------
Total Repurchase Agreement............. 11,122,000
------------
Cost $11,122,000)
Total Investments - 100.30 %......................... 272,383,482
------------
(Cost $272,383,482)*
Liabilities Net of Cash and Other Assets - (0.30)%.. (825,383)
------------
Net Assets - 100.00%................................ $271,558,099
============
</TABLE>
- --------------------------------------------------
(A) Annualized yield at time of purchase.
* At April 30, 1999, cost is identical for book and Federal income tax
purposes.
See accompanying Notes to Financial Statements
27
<PAGE>
Alleghany Funds
Statement of Assets and Liabilities (unaudited) April 30, 1999
================================================================================
<TABLE>
<CAPTION>
Alleghany/ Alleghany/
Alleghany/ Chicago Trust Alleghany/ Chicago Trust
Montag & Caldwell Growth & Income Chicago Trust Small Cap
Growth Fund Fund Talon Fund Value Fund
----------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments:
Investments at cost.......................... $1,927,807,643 $274,149,248 $19,730,690 $36,312,818
Repurchase agreements........................ -- 19,777,000 -- 1,308,000
Net unrealized appreciation.................. 677,090,261 209,672,685 1,048,121 1,712,138
-------------- ------------ ----------- -----------
Total investments at value................. 2,604,897,904 503,598,933 20,778,811 39,332,956
Cash............................................. -- 829 -- 862
Receivables:
Dividends and interest....................... 1,594,768 75,839 4,296 20,873
Fund shares sold............................. 8,434,159 807,761 71,516 47,739
Investments sold............................. 3,766,461 -- -- 1,334,932
Due from Adviser, net........................ -- -- -- --
Deferred organization costs.................... 1,685 -- 1,291 --
Other assets................................... 21,706 3,442 136 273
-------------- ------------ ----------- -----------
Total assets............................... 2,618,716,683 504,486,804 20,856,050 40,737,635
-------------- ------------ ----------- -----------
LIABILITIES:
Payables:
Bank overdraft............................... 64,671 -- -- --
Dividend distribution........................ -- -- -- --
Investments purchased........................ 35,283,221 3,048,380 -- 679,426
Fund shares redeemed......................... 3,731,718 203,273 16,668 1,300
Due to Adviser, net.......................... 1,408,970 284,355 9,476 26,186
Distribution fee............................. 5,161 127,230 42,465 12,193
Trustees fee................................. 9,951 1,899 76 144
Accrued expenses and other payables............ 477,580 60,233 22,628 7,188
-------------- ------------ ----------- -----------
Total liabilities.......................... 40,981,272 3,725,370 91,313 726,437
-------------- ------------ ----------- -----------
NET ASSETS....................................... $2,577,735,411 $500,761,434 $20,764,737 $40,011,198
============== ============ =========== ===========
NET ASSETS consist of:
Capital paid-in................................ 1,889,563,786 277,173,819 18,490,361 40,022,394
Accumulated undistributed (distribution
in excess of) net investment income (loss)... (1,582,453) (517,652) (23,165) 39,866
Accumulated net realized gain (loss)
on investments............................... 12,663,817 14,432,582 1,249,420 (1,763,200)
Net unrealized appreciation
on investments............................... 677,090,261 209,672,685 1,048,121 1,712,138
-------------- ------------ ----------- -----------
TOTAL NET ASSETS................................. $2,577,735,411 $500,761,434 $20,764,737 $40,011,198
============== ============ =========== ===========
Shares of beneficial interest outstanding........ 81,147,916 18,283,441 1,480,885 4,069,349
NET ASSET VALUE
Offering and redemption price per share........
(Net Assets/Shares Outstanding)................ (A) $ 27.39 $ 14.02 $ 9.83
============== ============ =========== ===========
</TABLE>
(A) Alleghany/Montag & Caldwell Growth Fund Class N:
Net Asset Value, offering price and redemption price per share (Based on
net assets of $1,449,553,247 and 45,778,649 shares issued and outstanding)
$31.66
Montag & Caldwell Growth Fund Class I:
Net Asset Value, offering price and redemption price per share (Based on
net assets of $1,128,182,164 and 35,369,267 shares issued and outstanding)
$31.90
(B) Alleghany/Montag & Caldwell Balanced Fund Class N:
Net Asset Value, offering price and redemption price per share (Based on
net assets of $142,403,136 and 7,481,485 shares issued and outstanding)
$19.03
Montag & Caldwell Balanced Fund Class I:
Net Asset Value, offering price and redemption price per share (Based on
net assets of $79,496,249 and 4,178,234 shares issued and outstanding)
$19.03
See accompanying Notes to Financial Statements.
28
<PAGE>
<TABLE>
<CAPTION>
Alleghany/ Alleghany/ Alleghany/
Veredus Alleghany/ Alleghany/ Alleghany/ Chicago Trust Chicago Trust
Aggressive Growth Montag & Caldwell Chicago Trust Chicago Trust Municipal Bond Money Market
Fund Balanced Fund Balanced Fund Bond Fund Fund Fund
----------------- ----------------- ------------- ------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
$21,209,362 $170,818,576 $191,186,852 $149,911,706 $16,443,587 $261,261,482
3,277,211 -- 7,080,000 9,663,000 -- 11,122,000
5,928,528 36,558,957 78,238,412 277,990 328,638 --
----------- ------------ ------------ ------------ ----------- ------------
30,415,101 207,377,533 276,505,264 159,852,696 16,772,225 272,383,482
-- -- -- -- 60 --
414 1,121,149 1,334,158 1,993,826 241,540 452,388
500,722 15,005,123 667,814 127,013 50 10,250
29,944 316,193 71,452 -- -- --
-- -- -- -- 6,492 --
20,062 1,684 1,939 -- -- --
151 1,802 1,818 1,384 111 2,614
----------- ------------ ------------ ------------ ----------- ------------
30,966,394 223,823,484 278,582,445 161,974,919 17,020,478 272,848,734
----------- ------------ ------------ ------------ ----------- ------------
-- 49,982 3,671 3,969 -- --
-- -- -- -- -- 851,707
632,499 1,443,388 -- -- -- --
-- 251,851 189,811 70,050 -- 315,115
18,658 128,718 160,129 55,521 -- 91,376
12,453 1,439 229,140 227,216 40,712 --
109 801 1,070 618 65 1,068
127 47,920 55,971 14,456 11,057 31,369
----------- ------------ ------------ ------------ ----------- ------------
663,846 1,924,099 639,792 371,830 51,834 1,290,635
----------- ------------ ------------ ------------ ----------- ------------
$30,302,548 $221,899,385 $277,942,653 $161,603,089 $16,968,644 $271,558,099
=========== ============ ============ ============ =========== ============
$23,356,643 $181,340,180 $192,048,258 $159,846,125 $16,611,959 $271,558,099
(84,722) 359,634 729,001 414,184 31,191 --
1,102,099 3,640,614 6,926,982 1,064,790 (3,144) --
5,928,528 36,558,957 78,238,412 277,990 328,638 --
----------- ------------ ------------ ------------ ----------- ------------
$30,302,548 $221,899,385 $277,942,653 $161,603,089 $16,968,644 $271,558,099
=========== ============ ============ ============ =========== ============
2,383,421 11,659,719 21,230,724 16,032,875 1,651,751 271,558,099
$ 12.71 (B) $ 13.09 $ 10.08 $ 10.27 $ 1.00
=========== ============ ============ ============ =========== ============
</TABLE>
29
<PAGE>
Alleghany Funds
Statement of Operations
For the Six Months Ended April 30, 1999 (unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
Alleghany/ Alleghany/
Alleghany/ Chicago Trust Alleghany/ Chicago Trust
Montag & Caldwell Growth & Income Chicago Trust Small Cap
Growth Fund Fund Talon Fund Value Fund (a)
----------------- ---------------- -------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.................................... $ 8,624,156 $ 1,344,962 $ 96,634 $ 172,763
Interest..................................... -- 425,948 24,250 106,447
--------------- -------------- ----------- ------------
Total investment income.................... 8,624,156 1,770,910 120,884 279,210
--------------- -------------- ----------- ------------
EXPENSES:
Investment advisory fees..................... 7,395,637 1,512,230 85,582 145,399
Distribution expenses........................ 1,539,251 540,082 26,744 36,292
Transfer agent fees.......................... 336,595 55,678 14,755 9,816
Administration fees.......................... 607,241 120,071 6,698 9,181
Registration expenses........................ 165,860 17,071 7,130 11,509
Custodian fees............................... 11,922 10,121 6,527 6,944
Professional fees............................ 32,226 12,627 8,670 7,708
Amortization of organization costs........... 1,653 577 1,653 --
Reports to shareowner expense................ 60,393 12,884 1,302 1,074
Trustees fees................................ 36,095 6,462 334 420
Other expenses............................... 19,736 759 315 195
--------------- -------------- ----------- ------------
Total expenses............................. 10,206,609 2,288,562 159,710 228,538
--------------- -------------- ----------- ------------
Expenses waived/reimbursed................. -- -- (20,717) (25,372)
--------------- -------------- ----------- ------------
Net expenses............................... 10,206,609 2,288,562 138,993 203,166
--------------- -------------- ----------- ------------
NET INVESTMENT INCOME (LOSS).................. (1,582,453) (517,652) (18,109) 76,044
--------------- -------------- ----------- ------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.... 12,785,130 14,432,837 1,556,082 (1,763,200)
Net change in unrealized appreciation
(depreciation) on investments.............. 420,742,026 85,288,192 (219,610) 1,712,138
--------------- -------------- ----------- ------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS................... 433,527,156 99,721,029 1,336,472 (51,062)
--------------- -------------- ----------- ------------
NET INCREASE IN NET
ASSETS FROM OPERATIONS....................... $ 431,944,703 $ 99,203,377 $ 1,318,363 $ 24,982
=============== ============== =========== ============
</TABLE>
- ------------------------------------------------------------
(a) Alleghany/Chicago Trust Small Cap Value Fund commenced investment
operations on November 10, 1998.
See accompanying Notes to Financial Statements.
30
<PAGE>
<TABLE>
<CAPTION>
Alleghany/ Alleghany/ Alleghany/
Veredus Alleghany/ Alleghany/ Alleghany/ Chicago Trust Chicago Trust
Aggressive Growth Montag & Caldwell Chicago Trust Chicago Trust Municipal Bond Money Market
Fund Balanced Fund Balanced Fund Bond Fund Fund Fund
----------------- ----------------- ------------- ------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
$15,947 $ 562,119 $ 465,822 $ -- $ 7,369 $ --
38,218 1,731,401 3,316,156 5,215,557 328,397 7,313,749
----------------- ----------------- ------------- ------------- -------------- -------------
54,165 2,293,520 3,781,978 5,215,557 335,766 7,313,749
----------------- ----------------- ------------- ------------- -------------- -------------
101,799 703,053 859,524 430,985 43,741 577,326
20,958 199,051 306,973 195,902 7,290 --
7,516 26,560 11,529 12,111 8,901 17,544
5,727 54,799 73,568 48,163 7,320 80,238
4,975 22,332 17,058 8,960 7,250 10,443
6,225 10,226 11,857 11,248 5,362 11,175
6,894 10,927 10,817 10,447 8,747 11,156
2,681 1,653 695 577 577 577
798 4,750 5,468 2,742 367 6,124
3,267 2,312 3,317 1,865 208 4,014
500 266 318 6,036 602 26,984
----------------- ----------------- ------------- ------------- -------------- -------------
161,340 1,035,929 1,301,124 729,036 90,365 745,581
----------------- ----------------- ------------- ------------- -------------- -------------
(22,453) -- -- (101,850) (83,074) --
----------------- ----------------- ------------- ------------- -------------- -------------
138,887 1,035,929 1,301,124 627,186 7,291 745,581
----------------- ----------------- ------------- ------------- -------------- -------------
(84,722) 1,257,591 2,480,854 4,588,371 328,475 6,568,168
----------------- ----------------- ------------- ------------- -------------- -------------
2,677,440 4,011,635 6,942,453 1,064,962 31,581 --
5,731,559 19,040,964 28,121,985 (3,183,303) (166,513) --
----------------- ----------------- ------------- ------------- -------------- -------------
8,408,999 23,052,599 35,064,438 (2,118,341) (134,932) --
----------------- ----------------- ------------- ------------- -------------- -------------
$8,324,277 $24,310,190 $37,545,292 $2,470,030 $193,543 $6,568,168
================= ================= ============= ============= ============== =============
</TABLE>
31
<PAGE>
Alleghany Funds
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Alleghany/ Alleghany/
Montag & Caldwell Chicago Trust
Growth Fund Growth & Income Fund
------------------------------------ -----------------------------------
Six Months Ended Six Months Ended
April 30, 1999 Year Ended April 30, 1999 Year Ended
(unaudited) October 31, 1998 (unaudited) October 31, 1998
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
NET ASSETS at beginning of period................... $ 1,742,778,507 $ 748,418,166 $ 367,666,442 $ 274,607,907
---------------- ---------------- ---------------- ----------------
Increase in net assets from operations:
Net investment income (loss)...................... (1,582,453) (1,422,104) (517,652) (347,447)
Net realized gain (loss) on investments sold...... 12,785,130 63,978,484 14,432,837 23,413,427
Net change in unrealized appreciation
(depreciation) on investments and assets and
liabilities.................................... 420,742,026 109,207,399 85,288,192 47,348,240
---------------- ---------------- ---------------- ----------------
Net increase (decrease) in net assets from
operations.................................... 431,944,703 171,763,779 99,203,377 70,414,220
---------------- ---------------- ---------------- ----------------
Distributions to shareowners:
From and in excess of net investment income:
Class N.......................................... -- -- -- (23,963)
Class I.......................................... -- -- -- --
From realized gain on investments:
Class N.......................................... (35,583,495) (4,750,066) (23,278,710) (19,283,609)
Class I.......................................... (28,418,102) (2,772,360) -- --
Return of Capital................................. -- -- -- (30,652)
---------------- ---------------- ---------------- ----------------
Total distributions............................. (64,001,597) (7,522,426) (23,278,710) (19,338,224)
---------------- ---------------- ---------------- ----------------
Capital share transactions:
Net proceeds from sales of shares:
Class N.......................................... 593,768,157 735,037,158 91,009,024 84,420,291
Class I.......................................... 502,059,305 510,661,778 -- --
Issued to shareowners in reinvestment of
distributions:
Class N.......................................... 33,016,184 4,476,035 22,904,776 19,000,003
Class I.......................................... 25,059,049 2,260,596 -- --
Cost of shares repurchased:
Class N.......................................... (386,288,677) (318,089,688) (56,743,475) (61,437,755)
Class I.......................................... (300,600,220) (104,226,891) -- --
---------------- ---------------- ---------------- ----------------
Net increase from capital share transactions.... 467,013,798 830,118,988 57,170,325 41,982,539
---------------- ---------------- ---------------- ----------------
Total increase (decrease) in net assets......... 834,956,904 994,360,341 133,094,992 93,058,535
---------------- ---------------- ---------------- ----------------
NET ASSETS at end of period (including line A)...... $ 2,577,735,411 $ 1,742,778,507 $ 500,761,434 $ 367,666,442
================ ================ ================ ================
(A) Undistributed (distribution in excess
of) net investment income (loss)............... $ (1,582,453) $ -- $ (517,652) $ --
---------------- ---------------- ---------------- ----------------
OTHER INFORMATION:
Share transactions:
Class N:
Sold............................................. 19,530,185 28,902,833 3,589,776 3,911,120
Issued to shareowners in reinvestment
of distributions.............................. 1,195,840 198,582 993,161 1,006,991
Repurchased...................................... (12,857,363) (12,333,539) (2,246,286) (2,888,977)
Class I:
Sold............................................. 16,615,668 19,881,332 -- --
Issued to shareowners in reinvestment
of distributions.............................. 903,059 99,938 -- --
Repurchased...................................... (9,860,580) (4,087,111) -- --
---------------- ---------------- ---------------- ----------------
Net increase (decrease) in shares outstanding... 15,526,809 32,662,035 2,336,651 2,029,134
================ ================ ================ ================
</TABLE>
- -------------------------------------------------
(a) Alleghany/Chicago Trust Small Cap Value Fund commenced investment
operations on November 10, 1998.
(b) Alleghany/Veredus Aggressive Growth Fund commenced investment operations on
July 2, 1998.
(c) Montag & Caldwell Balanced Fund-Class I commenced investment operations on
December 31, 1998.
See accompanying Notes to Financial Statements.
32
<PAGE>
<TABLE>
<CAPTION>
Alleghany/
Alleghany/ Chicago Trust
Chicago Trust Small Cap
Talon Fund Value Fund (a)
----------------------------------- --------------
Six Months Ended Period Ended
April 30, 1999 Year Ended April 30, 1999
(unaudited) October 31, 1998 (unaudited)
---------------- ---------------- --------------
<S> <C> <C> <C>
NET ASSETS at beginning of period................... $ 22,727,692 $ 28,459,583 $ 10.00
---------------- ---------------- --------------
Increase in net assets from operations:
Net investment income (loss)...................... (18,109) 129,406 76,044
Net realized gain (loss) on investments sold...... 1,556,082 (152,152) (1,763,200)
Net change in unrealized appreciation
(depreciation) on investments and assets and
liabilities.................................... (219,610) (2,860,775) 1,712,138
---------------- ---------------- --------------
Net increase (decrease) in net assets from
operations.................................... 1,318,363 (2,883,521) 24,982
---------------- ---------------- --------------
Distributions to shareowners:
From and in excess of net investment income:
Class N.......................................... (8,361) (163,813) (36,178)
Class I.......................................... -- -- --
From realized gain on investments:
Class N.......................................... -- (4,653,292) --
Class I.......................................... -- -- --
Return of Capital................................. -- -- --
---------------- ---------------- --------------
Total distributions............................. (8,361) (4,817,105) (36,178)
---------------- ---------------- --------------
Capital share transactions:
Net proceeds from sales of shares:
Class N.......................................... 930,852 6,908,329 41,397,510
Class I.......................................... -- -- --
Issued to shareowners in reinvestment of
distributions:
Class N.......................................... 8,053 4,757,368 36,171
Class I.......................................... -- -- --
Cost of shares repurchased:
Class N.......................................... (4,211,862) (9,696,962) (1,411,297)
Class I.......................................... -- -- --
---------------- ---------------- --------------
Net increase from capital share transactions.... (3,272,957) 1,968,735 40,022,384
---------------- ---------------- --------------
Total increase (decrease) in net assets......... (1,962,955) (5,731,891) 40,011,188
---------------- ---------------- --------------
NET ASSETS at end of period (including line A)...... $ 20,764,737 $ 22,727,692 $ 40,011,198
================ ================ ==============
(A) Undistributed (distribution in excess
of) net investment income (loss)............... $ (23,165) $ 3,805 $ 39,866
---------------- ---------------- --------------
OTHER INFORMATION:
Share transactions:
Class N:
Sold............................................. 68,558 451,934 4,213,073
Issued to shareowners in reinvestment
of distributions.............................. 603 318,839 3,661
Repurchased...................................... (314,928) (661,255) (147,386)
Class I:
Sold............................................. -- -- --
Issued to shareowners in reinvestment
of distributions.............................. -- -- --
Repurchased...................................... -- -- --
---------------- ---------------- --------------
Net increase (decrease) in shares outstanding... (245,767) 109,518 4,069,348
================ ================ ==============
Alleghany/ Alleghany/
Veredus Montag & Caldwell
Aggressive Balanced
Growth Fund (b) Fund (c)
----------------------------------- -----------------------------------
Six Months Ended Six Months Ended
April 30, 1999 Period Ended April 30, 1999 Period Ended
(unaudited) October 31, 1998 (unaudited) October 31, 1998
---------------- ---------------- ---------------- ----------------
<C> <C> <C> <C>
NET ASSETS at beginning of period................... $ 12,673,539 $ -- $ 158,398,348 $ 82,719,053
--------------- ---------------- ---------------- ----------------
Increase in net assets from operations:
Net investment income (loss)...................... (84,722) (483) 1,257,591 2,167,560
Net realized gain (loss) on investments sold...... 2,677,440 (1,575,341) 4,011,635 8,565,876
Net change in unrealized appreciation
(depreciation) on investments and assets and
liabilities.................................... 5,731,559 196,969 19,040,964 5,973,930
---------------- ---------------- ---------------- ----------------
Net increase (decrease) in net assets from
operations.................................... 8,324,277 (1,378,855) 24,310,190 16,707,366
---------------- ---------------- ---------------- ----------------
Distributions to shareowners:
From and in excess of net investment income:
Class N.......................................... -- -- (1,118,424) (2,001,366)
Class I.......................................... -- -- (130,978) --
From realized gain on investments:
Class N.......................................... -- -- (8,904,043) (2,095,351)
Class I.......................................... -- -- -- --
Return of Capital................................. -- -- -- --
---------------- ---------------- ---------------- ----------------
Total distributions............................. -- -- (10,153,445) (4,096,717)
---------------- ---------------- ---------------- ----------------
Capital share transactions:
Net proceeds from sales of shares:
Class N.......................................... 11,497,221 14,223,208 41,466,046 101,273,482
Class I.......................................... -- -- 79,402,053 --
Issued to shareowners in reinvestment of
distributions:
Class N.......................................... -- -- 9,910,605 3,950,066
Class I.......................................... -- -- 130,976 --
Cost of shares repurchased:
Class N.......................................... (2,192,489) (170,814) (80,230,263) (42,154,902)
Class I.......................................... -- -- (1,335,125) --
---------------- ---------------- ---------------- ----------------
Net increase from capital share transactions.... 9,304,732 14,052,394 49,344,292 63,068,646
---------------- ---------------- ---------------- ----------------
Total increase (decrease) in net assets......... 17,629,009 12,673,539 63,501,037 75,679,295
---------------- ---------------- ---------------- ----------------
NET ASSETS at end of period (including line A)...... $ 30,302,548 $ 12,673,539 $ 221,899,385 $ 158,398,348
================ ================ ================ ================
(A) Undistributed (distribution in excess
of) net investment income (loss)...............$ (84,722) $ -- $ 359,634 $ 351,445
---------------- ---------------- ---------------- ----------------
OTHER INFORMATION:
Share transactions:
Class N:
Sold............................................. 1,110,543 1,490,149 2,225,943 6,029,088
Issued to shareowners in reinvestment
of distributions.............................. -- -- 564,002 244,553
Repurchased...................................... (196,954) (20,317) (4,306,028) (2,443,871)
Class I:
Sold............................................. -- -- 4,243,485 --
Issued to shareowners in reinvestment
of distributions.............................. -- -- 6,875 --
Repurchased...................................... -- -- (72,126) --
---------------- ---------------- ---------------- ----------------
Net increase (decrease) in shares outstanding... 913,589 1,469,832 2,662,151 3,829,770
================ ================ ================ ================
</TABLE>
33
<PAGE>
Alleghany Funds
Statement of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
=========================================================================================================================
Alleghany/ Alleghany/
Chicago Trust Chicago Trust
Balanced Fund Bond Fund
--------------------------------- ---------------------------------
Six Months Six Months
Ended Ended
April 30, 1999 Year Ended April 30, 1999 Year Ended
(unaudited) October 31, 1998 (unaudited) October 31, 1998
-------------- ---------------- -------------- ----------------
<S> <C> <C> <C> <C>
NET ASSETS at beginning of period................ $ 219,361,542 $ 187,993,337 $ 160,561,220 $ 120,532,177
-------------- ---------------- -------------- ----------------
Increase in net assets
from operations:
Net investment income.......................... 2,480,854 4,770,524 4,588,371 8,011,478
Net realized gain on investments sold.......... 6,942,453 13,005,184 1,064,962 720,844
Net change in unrealized
appreciation/(depreciation)
of investments and assets and liabilities.... 28,121,985 16,518,248 (3,183,303) 629,065
-------------- ---------------- -------------- ----------------
Net increase in net assets
from operations................................ 37,545,292 34,293,956 2,470,030 9,361,387
-------------- ---------------- -------------- ----------------
Distributions to shareowners:
From and in excess of net investment income.... (2,445,044) (4,710,584) (4,586,848) (8,038,190)
From realized gain on investments.............. (13,010,617) (11,401,639) (708,951) --
-------------- ---------------- -------------- ----------------
Total distributions.......................... (15,455,661) (16,112,223) (5,295,799) (8,038,190)
-------------- ---------------- -------------- ----------------
Capital share transactions:
Net proceeds from sales of shares.............. 54,534,374 36,882,800 24,285,367 75,297,016
Issued to shareowners in
reinvestment of distributions................ 15,444,201 16,106,383 4,759,494 6,689,047
Cost of shares repurchased..................... (33,487,095) (39,802,711) (25,177,223) (43,280,217)
-------------- ---------------- -------------- ----------------
Net increase (decrease) from capital share
transactions................................. 36,491,480 13,186,472 3,867,638 38,705,846
-------------- ---------------- -------------- ----------------
Total increase (decrease) in net assets...... 58,581,111 31,368,205 1,041,869 40,029,043
-------------- ---------------- -------------- ----------------
NET ASSETS at end of period (including line A)... $ 277,942,653 $ 219,361,542 $ 161,603,089 $ 160,561,220
============== ================ ============== ================
(A) Undistributed net investment income.......... $ 729,001 $ 693,191 $ 414,184 $ 412,661
-------------- ---------------- -------------- ----------------
OTHER INFORMATION:
Share transactions:
Sold........................................... 4,359,008 3,317,900 2,402,813 7,333,221
Issued to shareowners in reinvestment
of distributions............................. 1,310,832 1,398,337 454,244 656,919
Repurchased.................................... (2,669,396) (3,485,565) (2,460,848) (4,247,776)
-------------- ---------------- -------------- ----------------
Net increase (decrease) in shares outstanding.. 3,000,444 1,230,672 396,209 3,742,364
============== ================ ============== ================
</TABLE>
See accompanying Notes to Financial Statements.
34
<PAGE>
Alleghany Funds
Statement of Changes in Net Assets (Continued)
===============================================================================
<TABLE>
<CAPTION>
Alleghany/ Alleghany/
Chicago Trust Chicago Trust
Municipal Bond Fund Money Market Fund
----------------------------------- -----------------------------------
Six Months Ended Six Months Ended
April 30, 1999 Year Ended April 30, 1999 Year Ended
(unaudited) October 31, 1998 (unaudited) October 31, 1998
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
NET ASSETS at beginning of period................ $ 13,209,908 $ 12,379,208 $ 281,389,294 $ 238,551,474
---------------- ---------------- ---------------- ----------------
Increase in net assets
from operations:
Net investment income.......................... 328,475 560,590 6,568,168 13,160,425
Net realized gain on investments sold.......... 31,581 56,385 -- --
Net change in unrealized
appreciation/(depreciation)
of investments and assets and liabilities.... (166,513) 175,662 -- --
---------------- ---------------- ---------------- ----------------
Net increase in net assets
from operations................................ 193,543 792,637 6,568,168 13,160,425
---------------- ---------------- ---------------- ----------------
Distributions to shareowners:
From and in excess of net investment income.... (323,887) (561,443) (6,568,168) (13,160,425)
From realized gain on investments.............. -- -- -- --
---------------- ---------------- ---------------- ----------------
Total distributions.......................... (323,887) (561,443) (6,568,168) (13,160,425)
---------------- ---------------- ---------------- ----------------
Capital share transactions:
Net proceeds from sales of shares.............. 4,503,545 10,749,139 650,738,781 720,702,583
Issued to shareowners in
reinvestment of distributions................ 45,125 42,390 756,377 816,231
Cost of shares repurchased..................... (659,590) (10,192,023) (661,326,353) (678,680,994)
---------------- ---------------- ---------------- ----------------
Net increase (decrease) from capital share
transactions................................. 3,889,080 599,506 (9,831,195) 42,837,820
---------------- ---------------- ---------------- ----------------
Total increase (decrease) in net assets...... 3,758,736 830,700 (9,831,195) 42,837,820
---------------- ---------------- ---------------- ----------------
NET ASSETS at end of period (including line A)... $ 16,968,644 $ 13,209,908 $ 271,558,099 $ 281,389,294
================ ================ ================ ================
(A) Undistributed net investment income.......... $ 31,191 $ 26,603 $ -- $ --
---------------- ---------------- ---------------- ----------------
OTHERINFORMATION:
Share transactions:
Sold........................................... 434,077 1,049,531 650,738,781 720,702,583
Issued to shareowners in reinvestment
of distributions............................. 4,261 4,135 756,377 816,231
Repurchased.................................... (61,431) (994,156) (661,326,353) (678,680,994)
---------------- ---------------- ---------------- ----------------
Net increase (decrease) in shares outstanding.. 376,907 59,510 (9,831,195) 42,837,820
================ ================ ================ ================
</TABLE>
See accompanying Notes to Financial Statements
35
<PAGE>
<TABLE>
<CAPTION>
ALLEGHANY FUNDS
Financial Highlights April 30, 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Alleghany/Montag & Caldwell Growth Fund
-----------------------------------------------------------------
Class N
-----------------------------------------------------------------
Six Months
Ended Year Year Year Period
04/30/99 Ended Ended Ended Ended
(unaudited) 10/31/98 10/31/97 10/31/96 10/31/95(a)
----------- ---------- -------- -------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period........................ $ 26.49 $ 22.68 $ 17.08 $ 13.16 $ 10.00
----------- ---------- -------- -------- -----------
Income from Investment Operations:
Net investment income (loss)............................ (0.04) (0.05) (0.05) -- 0.02
Net realized and unrealized gain
on investments......................................... 6.15 4.07 5.79 3.93 3.16
----------- ---------- -------- -------- -----------
Total from investment operations....................... 6.11 4.02 5.74 3.93 3.18
----------- ---------- -------- -------- -----------
Less Distributions:
Distributions from and in excess
of net investment income................................ -- -- -- (0.01) (0.02)
Distributions from net realized
gain on investments..................................... (0.94) (0.21) (0.14) -- --
----------- ---------- -------- -------- -----------
Total distributions..................................... (0.94) (0.21) (0.14) (0.01) (0.02)
----------- ---------- -------- -------- -----------
Net increase in net asset value............................. 5.17 3.81 5.60 3.92 3.16
----------- ---------- -------- -------- -----------
Net Asset Value, End of Period.............................. $ 31.66 $ 26.49 $ 22.68 $ 17.08 $ 13.16
========== ========== ======== ======== ===========
Total Return/(1)/........................................... 23.61% 17.90% 33.82% 29.91% 31.87%
Ratios/Supplemental Data:
Net Assets, End of Period (in 000's)........................ $1,449,553 $1,004,356 $479,557 $166,243 $ 40,355
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser/(2)/.......... 1.06% 1.12% 1.24% 1.32% 1.87%
After reimbursement of expenses by Adviser/(2)/........... 1.06% 1.12% 1.23% 1.28% 1.30%
Ratios of net investment income (loss) to average net assets:
Before reimbursement of expenses by Adviser/(2)/.......... (0.28)% (0.22)% (0.38)% (0.10)% (0.36)%
After reimbursement of expenses by Adviser/(2)/........... (0.28)% (0.22)% (0.37)% (0.06)% 0.20%
Portfolio Turnover/(1)/..................................... 11.63% 29.81% 18.65% 26.36% 34.46%
</TABLE>
- ------------------------------------
/(1)/ Not annualized.
/(2)/ Annualized.
/(a)/ Alleghany/Montag & Caldwell Growth Fund-Class N commenced investment
operations on November 2, 1994.
See accompanying Notes to Financial Statements.
36
<PAGE>
<TABLE>
<CAPTION>
Alleghany Funds
Financial Highlights April 30, 1999
- -------------------------------------------------------------------------------------------------------------------------------
Montag & Caldwell Growth Fund
--------------------------------------------------------------
Class I
--------------------------------------------------------------
Six Months
Ended Year Year Period
04/30/99 Ended Ended Ended
(unaudited) 10/31/98 10/31/97 10/31/96/(a)/
----------- -------- -------- -------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period......................... $ 26.65 $ 22.75 $ 17.08 $ 15.59
Income from Investment Operations: ---------- --------- --------- ----------
Net investment income...................................... -- /(b)/ 0.01 -- /(b)/ 0.02
Net realized and unrealized gain
on investments............................................ 6.19 4.10 5.81 1.49
---------- --------- --------- ----------
Total from investment operations.......................... 6.19 4.11 5.81 1.51
---------- --------- --------- ----------
Less Distributions:
Distributions from and in excess
of net investment income.................................. -- -- -- (0.02)
Distributions from net realized
gain on investments....................................... (0.94) (0.21) (0.14) --
---------- --------- --------- ----------
Total distributions...................................... (0.94) (0.21) (0.14) (0.02)
---------- --------- --------- ----------
Net increase in net asset value.............................. 5.25 3.90 5.67 1.49
---------- --------- --------- ----------
Net Asset Value, End of Period............................... $ 31.90 $ 26.65 $ 22.75 $ 17.08
========== ========= ========= ==========
Total Return/(1)/............................................ 23.73% 18.24% 34.26% 9.67%
Ratios/Supplemental Data:
Net Assets, End of Period (in 000's)......................... $1,128,182 $ 738,423 $ 268,861 $52,407
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser/(2)/............ 0.76% 0.85% 0.93% 0.98%
After reimbursement of expenses by Adviser/(2)/............. 0.76% 0.85% 0.93% 0.98%
Ratios of net investment income (loss) to average net assets:
Before reimbursement of expenses by Adviser/(2)/............ 0.02% 0.05% (0.07)% 0.17%
After reimbursement of expenses by Adviser/(2)/............. 0.02% 0.05% (0.06)% 0.17%
Portfolio Turnover/(1)/...................................... 11.63% 29.81% 18.65% 26.36%
</TABLE>
- ----------------------------------------------------------------------------
/(1)/ Not annualized.
/(2)/ Annualized.
/(a)/ Montag & Caldwell Growth Fund-Class I commenced investment operations on
June 28, 1996.
/(b)/ Represents less than $0.01 per share.
See accompanying Notes to Financial Statements.
37
<PAGE>
Alleghany Funds
Financial Highlights April 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Alleghany/Chicago Trust Growth & Income Fund
--------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Period
04/30/99 Ended Ended Ended Ended Ended
(unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94(a)
----------- -------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................ $ 23.06 $ 19.73 $ 16.17 $ 12.90 $ 10.11 $ 10.00
-------- -------- -------- -------- -------- ---------
Income from Investment Operations:
Net investment income (loss)...................... (0.03) (0.02) 0.08 0.11 0.09 0.07
Net realized and unrealized gain
on investments................................... 5.79 4.73 3.91 3.34 2.79 0.10
-------- -------- -------- -------- -------- ---------
Total from investment operations............... 5.76 4.71 3.99 3.45 2.88 0.17
-------- -------- -------- -------- -------- ---------
Less Distributions:
Distributions from and in excess
of net investment income......................... -- (0.01) (0.09) (0.11) (0.09) (0.06)
Distributions from net realized
gain on investments.............................. (1.43) (1.37) (0.34) (0.07) -- --
-------- -------- -------- -------- -------- ---------
Total distributions............................ (1.43) (1.38) (0.43) (0.18) (0.09) (0.06)
-------- -------- -------- -------- -------- ---------
Net increase in net asset value..................... 4.33 3.33 3.56 3.27 2.79 0.11
-------- -------- -------- -------- -------- ---------
Net Asset Value, End of Period...................... $ 27.39 $ 23.06 $ 19.73 $ 16.17 $ 12.90 $ 10.11
======== ======== ======== ======== ======== =========
Total Return/(1)/................................... 26.24% 25.43% 25.16% 26.98% 28.66% 1.73%
Ratios/Supplemental Data:
Net Assets, End of Period (in 000's)................ $500,761 $367,666 $274,608 $205,133 $172,296 $ 12,282
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser/(2)/... 1.06% 1.08% 1.12% 1.15% 1.50% 2.21%
After reimbursement of expenses by Adviser/(2)/.... 1.06% 1.08% 1.07%/(3)/ 1.00% 1.09%/(4)/ 1.20%
Ratios of net investment income (loss) to average
net assets:
Before reimbursement of expenses by Adviser/(2)/... (0.24)% (0.11)% 0.36% 0.62% 0.33% (0.15)%
After reimbursement of expenses by Adviser/(2)/.... (0.24)% (0.11)% 0.41% 0.77% 0.74% 0.86%
Portfolio Turnover/(1)/............................. 9.69% 34.21% 30.58% 25.48% 9.00% 37.01%
- ----------------------------------------------------------------
</TABLE>
/(1)/ Not annualized.
/(2)/ Annualized.
/(3)/ The Adviser's expense reimbursement level, which affects the net
expense ratio, changed from 1.00% to 1.10% on February 28, 1997.
/(4)/ The Adviser's expense reimbursement level, which affects the net
expense ratio, changed from 1.20% to 1.00% on September 21, 1995.
/(a)/ Alleghany/Chicago Trust Growth & Income Fund commenced investment
operations on December 13, 1993.
See accompanying Notes to Financial Statements.
38
<PAGE>
Alleghany Funds
Financial Highlights April 30, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Alleghany/Chicago Trust Talon Fund
-------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Period
04/30/99 Ended Ended Ended Ended Ended
(unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94/(a)/
----------- -------- -------- -------- -------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................... $ 13.16 $ 17.60 $ 14.39 $ 12.07 $ 10.25 $ 10.00
-------- -------- ------- ------- ------- --------
Income from Investment Operations:
Net investment income (loss)......................... (0.01) 0.07 0.11 0.04 0.09 0.02
Net realized and unrealized gain (loss)
on investments...................................... 0.87 (1.59) 4.38 3.01 1.84 0.23
-------- -------- ------- ------- ------- --------
Total from investment operations.................. 0.86 (1.52) 4.49 3.05 1.93 0.25
-------- -------- ------- ------- ------- --------
Less Distributions:
Distributions from and in excess
of net investment income........................... --/(b)/ (0.09) (0.09) (0.03) (0.11) --
Distributions from net realized
gain on investments................................. -- (2.83) (1.19) (0.70) -- --
-------- -------- ------- ------- ------- --------
Total distributions............................... -- (2.92) (1.28) (0.73) (0.11) --
-------- -------- ------- ------- ------- --------
Net increase (decrease) in net asset value............. 0.86 (4.44) 3.21 2.32 1.82 0.25
-------- -------- ------- ------- ------- --------
Net Asset Value, End of Period......................... $ 14.02 $ 13.16 $ 17.60 $ 14.39 $ 12.07 $ 10.25
======== ======== ======= ======= ======= ========
Total Return/(1)/...................................... 6.57% (10.54)% 33.47% 26.51% 18.92% 2.50%
Ratios/Supplemental Data:
Net Assets, End of Period (in 000's)................... $ 20,765 $22,728 $28,460 $17,418 $10,538 $ 4,355
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser/(2)/...... 1.49% 1.46% 1.67% 1.98% 3.04% 7.82%
After reimbursement of expenses by Adviser/(2)/....... 1.30% 1.30% 1.30% 1.30% 1.30% 1.30%
Ratios of net investment income (loss) to average
net assets:
Before reimbursement of expenses by Adviser/(2)/...... (0.36)% 0.30% 0.34% (0.38)% (0.97)% (4.13)%
After reimbursement of expenses by Adviser/(2)/....... (0.17)% 0.46% 0.71% 0.30% 0.77% 2.39%
Portfolio Turnover/(1)/................................ 44.62% 78.33% 112.72% 126.83% 229.43% 33.66%
</TABLE>
- ---------------------------------------
(1) Not annualized.
(2) Annualized.
(a) Alleghany/Chicago Trust Talon Fund commenced investment operations on
September 19, 1994.
(b) Represents less than $0.01 per share.
See accompanying Notes to Financial Statements.
38
<PAGE>
Alleghany Funds
Financial Highlights April 30, 1999
===============================================================================
Alleghany/
Chicago Trust Small Cap Value Fund
----------------------------------
Period
Ended
04/30/99(a)
(unaudited)
-----------
<TABLE>
<S> <C>
Net Asset Value, Beginning of Period.................... $ 10.00
---------
Income from Investment Operations:
Net investment income............................... 0.02
Net realized and unrealized loss
on investments.................................... (0.18)
---------
Total from investment operations.................. (0.16)
---------
Less Distributions:
Distributions from and in excess
of net investment income.......................... (0.01)
Distributions from net realized
gain on investments............................... --
---------
Total distributions............................. (0.01)
---------
Net decrease in net asset value......................... (0.17)
---------
Net Asset Value, End of Period.......................... $ 9.83
=========
Total Return/(1)/........................................ (1.46)%
Ratios/Supplemental Data:
Net Assets, End of Period (in 000's)..................... 40,011
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser/(2)/....... 1.57%
After reimbursement of expenses by Adviser/(2)/........ 1.40%
Ratios of net investment income to average net assets:
Before reimbursement of expenses by Adviser/(2)/....... 0.35%
After reimbursement of expenses by Adviser/(2)/........ 0.52%
Portfolio Turnover/(1)/.................................. 45.74%
</TABLE>
=========================================================
(1) Not Annualized.
(2) Annualized.
(a) Alleghany/Chicago Trust Small Cap Value Fund commenced investment
operations on November 10, 1998.
See accompanying Notes to Financial Statements.
40
<PAGE>
Alleghany Funds
Financial Highlights April 30, 1999
================================================================================
<TABLE>
<CAPTION>
Alleghany/Veredus Aggressive Growth Fund
----------------------------------------
Six Months
Ended 04/30/99 Period Ended
(unaudited) 10/31/98(a)
-------------- ------------
<S> <C> <C>
Net Asset Value, Beginning of Period.......................... $ 8.62 $ 10.00
----------- -----------
Income from Investment Operations:
Net investment income/(loss)................................ (0.04) -- /(b)/
Net realized and unrealized gain (loss) on investments...... 4.13 (1.38)
----------- -----------
Total from investment operations........................... 4.09 (1.38)
----------- -----------
Less Distributions:
Distributions from and in excess of net investment income... -- --
Distributions from net realized gain on investments......... -- --
----------- -----------
Total distributions...................................... -- --
----------- -----------
Net increase (decrease) in net asset value.................... 4.09 (1.38)
----------- -----------
Net Asset Value, End of Period................................ $ 12.71 $ 8.62
=========== ===========
Total Return/(1)/............................................. 47.45% (13.80)%
Ratios/Supplemental Data:
Net Assets, End of Period (in 000's).......................... $ 30,303 $ 12,674
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser/(2)/............. 1.65% 1.54%
After reimbursement of expenses by Adviser/(2)/.............. 1.42% 1.50%
Ratios of net investment income (loss) to average net assets:
Before reimbursement of expenses by Adviser/(2)/............. (1.09)% (0.06)%
After reimbursement of expenses by Adviser/(2)/.............. (0.86)% (0.02)%
Portfolio Turnover/(1)/....................................... 135.12% 111.52%
</TABLE>
================================================================================
(1) Not Annualized
(2) Annualized
(a) Alleghany/Veredus Aggressive Growth Fund commenced investment operations
on July 2, 1998.
(b) Represents less than $0.01 per share.
See accompanying Notes to Financial Statements.
41
<PAGE>
<TABLE>
<CAPTION>
Alleghany Funds
Financial Highlights April 30, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
Alleghany/
Montag & Caldwell Montag & Caldwell
Balanced Fund Balanced Fund
-------------------------------------------------------- -----------------
Class N Class I
-------------------------------------------------------- -----------------
Six Months Period
Ended Year Year Year Period Ended
04/30/99 Ended Ended Ended Ended 04/30/99(b)
(unaudited) 10/31/98 10/31/97 10/31/96 10/31/95(a) (unaudited)
----------- -------- -------- -------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.................. $ 17.60 $ 16.01 $ 14.29 $ 12.12 $ 10.00 $ 18.36
-------- -------- ------- ------- ------- -------
Income from Investment Operations:
Net investment income............................... 0.12 0.27 0.25 0.27 0.26 0.07
Net realized and unrealized gain
on investments..................................... 2.37 1.97 2.93 2.17 2.09 0.65
-------- -------- ------- ------- ------- -------
Total from investment operations................. 2.49 2.24 3.18 2.44 2.35 0.72
-------- -------- ------- ------- ------- -------
Less Distributions:
Distributions from and in excess
of net investment income.......................... (0.12) (0.27) (0.25) (0.27) (0.23) (0.05)
Distributions from net realized
gain on investments............................... (0.94) (0.38) (1.21) -- -- --
-------- -------- ------- ------- ------- -------
Total distributions.............................. (1.06) (0.65) (1.46) (0.27) (0.23) (0.05)
-------- -------- ------- ------- ------- -------
Net increase in net asset value....................... 1.43 1.59 1.72 2.17 2.12 0.67
-------- -------- ------- ------- ------- -------
Net Asset Value, End of Period........................ $ 19.03 $ 17.60 $ 16.01 $ 14.29 $ 12.12 $ 19.03
======== ======== ======= ======= ======= =======
Total Return/(1)/..................................... 14.67% 14.46% 24.26% 20.37% 23.75% 3.94%
Ratios/Supplemental Data:
Net Asset, End of Period (in 000's)................... $142,403 $158,398 $82,719 $31,473 $21,908 $79,496
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser/(2)/..... 1.13% 1.18% 1.33% 1.58% 2.50% 0.96%
After reimbursement of expenses by Adviser/(2)/...... 1.13% 1.18% 1.25% 1.25% 1.25% 0.96%
Ratios of net investment income to average net assets:
Before reimbursement of expenses by Adviser/(2)/..... 1.32% 1.67% 1.70% 1.83% 1.38% 1.49%
After reimbursement of expenses by Adviser/(2)/...... 1.32% 1.67% 1.78% 2.16% 2.63% 1.49%
Portfolio Turnover/(1)/............................... 16.28% 59.02% 28.13% 43.58% 27.33% 16.28%
- ---------------------
</TABLE>
(1) Not annualized.
(2) Annualized.
(a) Alleghany/Montag & Caldwell Balanced Fund-Class N commenced investment
operations on November 2, 1994.
(b) Montag & Caldwell Balanced Fund-Class I commenced investment operations
on December 31, 1998.
See accompanying Notes to Financial Statements.
42
<PAGE>
<TABLE>
<CAPTION>
Alleghany Funds
Financial Highlights April 30, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
Alleghany/Chicago Trust Balanced Fund
-------------------------------------------------------------------------
Six Months
Ended Year Year Year Period
04/30/99 Ended Ended Ended Ended
(unaudited) 10/31/98 10/31/97 10/31/96 10/31/95(a)
----------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................... $ 12.03 $ 11.06 $ 9.60 $ 8.43 $ 8.34
----------- -------- -------- -------- -----------
Income from Investment Operations:
Net investment income................................ 0.12 0.27 0.28 0.27 0.03
Net realized and unrealized gain
on investments...................................... 1.78 1.65 1.60 1.16 0.06
----------- -------- -------- -------- -----------
Total from investment operations.................. 1.90 1.92 1.88 1.43 0.09
----------- -------- -------- -------- -----------
Less Distributions:
Distributions from and in excess
of net investment income........................... (0.13) (0.27) (0.28) (0.26) --
Distributions from net realized
gain on investments................................ (0.71) (0.68) (0.14) -- --
----------- -------- -------- -------- -----------
Total distributions............................... (0.84) (0.95) (0.42) (0.26) --
----------- -------- -------- -------- -----------
Net increase in net asset value........................ 1.06 0.97 1.46 1.17 0.09
----------- -------- -------- -------- -----------
Net Asset Value, End of Period......................... $ 13.09 $ 12.03 $ 11.06 $ 9.60 $ 8.43
=========== ======== ======== ======== ===========
Total Return/(1)/...................................... 16.59% 18.50% 20.10% 17.21% 1.08%
Ratios/Supplemental Data:
Net Assets, End of Period (in 000's)................... $ 277,943 $219,362 $187,993 $156,703 $ 152,820
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser/(2)/...... 1.06% 1.08% 1.13% 1.17% 1.19%
After reimbursement of expenses by Adviser/(2)/....... 1.06% 1.08% 1.07%/(3)/ 1.00% 1.00%
Ratios of net investment income to average net assets:
Before reimbursement of expenses by Adviser/(2)/...... 2.02% 2.30% 2.70% 2.79% 2.56%
After reimbursement of expenses by Adviser/(2)/....... 2.02% 2.30% 2.76% 2.96% 2.73%
Portfolio Turnover/(1)/................................ 13.18% 40.28% 34.69% 34.29% 0.72%
</TABLE>
- ----------------------------------------------------------------------
(1) Not annualized.
(2) Annualized.
(3) The Adviser's expense reimbursement level, which affects the net expense
ratio, changed from 1.00% to 1.10% on February 28, 1997.
(a) Alleghany/Chicago Trust Balanced Fund (formerly the Chicago Trust Asset
Allocation Fund) commenced investment operations on September 21, 1995.
See accompanying Notes to Financial Statements.
43
<PAGE>
<TABLE>
<CAPTION>
Alleghany Funds
Financial Highlights April 30, 1999
- -------------------------------------------------------------------------------------------------------------------------------
Alleghany/Chicago Trust Bond Fund
---------------------------------------------------------------------
Six Months
Ended Year Year Year Year Period
04/30/99 Ended Ended Ended Ended Ended
(unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94(a)
----------- -------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................... $ 10.27 $ 10.13 $ 9.89 $ 9.94 $ 9.21 $ 10.00
-------- -------- -------- ------- ------- -------
Income from Investment Operations:
Net investment income................................ 0.30 0.60 0.61 0.60 0.60 0.50
Net realized and unrealized gain (loss)
on investments...................................... (0.14) 0.15 0.23 (0.05) 0.73 (0.82)
-------- -------- -------- ------- ------- -------
Total from investment operations.................. 0.16 0.75 0.84 0.55 1.33 (0.32)
-------- -------- -------- ------- ------- -------
Less Distributions:
Distributions from and in excess
of net investment income............................ (0.30) (0.61) (0.60) (0.60) (0.60) (0.47)
Distributions from net realized
gain on investments................................. (0.05) -- -- -- -- --
-------- -------- -------- ------- ------- -------
Total distributions............................... (0.35) (0.61) (0.60) (0.60) (0.60) (0.47)
-------- -------- -------- ------- ------- -------
Net increase (decrease) in net asset value............. (0.19) 0.14 0.24 (0.05) 0.73 (0.79)
-------- -------- -------- ------- ------- -------
Net Asset Value, End of Period......................... $ 10.08 $ 10.27 $ 10.13 $ 9.89 $ 9.94 $ 9.21
======== ======== ======== ======= ======= =======
Total Return/(1)/...................................... 1.50% 7.66% 8.84% 5.76% 14.89% (3.23)%
Ratios/Supplemental Data:
Net Assets, End of Period (in 000's)................... $161,603 $160,561 $120,532 $79,211 $70,490 $12,546
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser/(2)/...... 0.93% 0.96% 1.02% 1.10% 1.54% 2.02%
After reimbursement of expenses by Adviser/(2)/....... 0.80% 0.80% 0.80% 0.80% 0.80% 0.80%
Ratios of net investment income to average net assets:
Before reimbursement of expenses by Adviser/(2)/...... 5.73% 5.79% 6.02% 5.89% 5.78% 4.83%
After reimbursement of expenses by Adviser/(2)/....... 5.86% 5.95% 6.24% 6.19% 6.52% 6.05%
Portfolio Turnover/(1)/................................ 21.22% 45.29% 17.76% 41.75% 68.24% 20.73%
</TABLE>
- --------------------
(1) Not annualized.
(2) Annualized.
(a) Alleghany/Chicago Trust Bond Fund commenced investment operations on
December 13, 1993.
See accompanying Notes to Financial Statements.
44
<PAGE>
Alleghany Funds
Financial Highlights April 30, 1999
================================================================================
<TABLE>
<CAPTION>
Alleghany/Chicago Trust Municipal Bond Fund
-------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Period
04/30/99 Ended Ended Ended Ended Ended
(unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94(a)
----------- -------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period .................. $ 10.36 $ 10.19 $ 10.06 $ 10.08 $ 9.56 $ 10.00
------- ------- ------- ------- ------- -------
Income from Investment Operations:
Net investment income ......................... 0.23 0.44 0.38 0.38 0.35 0.27
Net realized and unrealized gain (loss) on
investments ................................. (0.09) 0.17 0.12 (0.02) 0.52 (0.46)
------- ------- ------- ------- ------- -------
Total from investment operations .......... 0.14 0.61 0.50 0.36 0.87 (0.19)
------- ------- ------- ------- ------- -------
Less distributions from and in excess of net
investment income ............................... (0.23) (0.44) (0.37) (0.38) (0.35) (0.25)
------- ------- ------- ------- ------- -------
Net increase (decrease) in net asset value ............ (0.09) 0.17 0.13 (0.02) 0.52 (0.44)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period ........................ $ 10.27 $ 10.36 $ 10.19 $ 10.06 $ 10.08 $ 9.56
======= ======= ======= ======= ======= =======
Total Return/(1)/ ..................................... 1.35% 6.17% 5.13% 3.59% 9.29% (1.92)%
Ratios/Supplemental Data:
Net Assets, End of Period (in 000's) .................. $16,969 $13,210 $12,379 $11,186 $11,679 $10,462
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser/(2)/ .. 1.24% 1.41% 1.64% 1.53% 2.16% 2.09%
After reimbursement of expenses by Adviser/(2)/ ... 0.10% 0.35%/(3)/ 0.90% 0.90% 0.90% 0.90%
Ratios of net investment income to average net assets:
Before reimbursement of expenses by Adviser/(2)/ .. 3.37% 3.22% 3.00% 3.11% 2.37% 1.90%
After reimbursement of expenses by Adviser/(2)/ ... 4.51% 4.28% 3.74% 3.74% 3.63% 3.09%
Portfolio Turnover/(1)/ ............................... 13.16% 34.33% 16.19% 27.47% 42.81% 14.85%
</TABLE>
- ------------------------
/(1)/ Not annualized.
/(2)/ Annualized.
/(3)/ The Adviser's expense reimbursement level, which affects the net expense
ratio, changed from 0.90% to 0.10% on February 27, 1998.
(a) Alleghany/Chicago Trust Municipal Bond Fund commenced investment
operations on December 13, 1993.
See accompanying Notes to Financial Statements.
45
<PAGE>
Alleghany Funds
Financial Highlights April 30, 1999
================================================================================
<TABLE>
<CAPTION>
Alleghany/Chicago Trust Money Market Fund
---------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Period
04/30/99 Ended Ended Ended Ended Ended
(unaudited) 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94(a)
----------- -------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income ........................... 0.02 0.05 0.05 0.05 0.05 0.03
-------- -------- -------- -------- -------- --------
Less distributions from net investment income ......... (0.02) (0.05) (0.05) (0.05) (0.05) (0.03)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period ........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return/(1)/ ..................................... 2.29% 5.24% 5.15% 5.14% 5.56% 3.20%
Ratios/Supplemental Data:
Net Assets, End of Period (in 000's) .................. $271,558 $281,389 $238,551 $226,536 $206,075 $122,929
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser/(2)/ .. 0.52% 0.52% 0.56% 0.59% 0.63% 0.64%
After reimbursement of expenses by Adviser/(2)/ ... 0.52% 0.51%/(4)/ 0.50% 0.50% 0.43%/(3)/ 0.40%
Ratios of net investment income to average net assets:
Before reimbursement of expenses by Adviser/(2)/ .. 4.55% 5.13% 5.00% 4.93% 5.24% 3.49%
After reimbursement of expenses by Adviser/(2)/ ... 4.55% 5.14% 5.06% 5.02% 5.44% 3.73%
</TABLE>
- ------------------------
/(1)/ Not annualized.
/(2)/ Annualized.
/(3)/ The Adviser's expense reimbursement level, which affects the net
expense ratio, changed from 0.40% to 0.50% on July 12, 1995.
/(4)/ As of February 27, 1998, the Adviser no longer waived fees or
reimbursed expenses.
(a) Alleghany/Chicago Trust Money Market Fund commenced investment operations
on December 14, 1993.
See accompanying Notes to Financial Statements.
46
<PAGE>
ALLEGHANY FUNDS
Notes to Financial Statements (unaudited) April 30, 1999
- --------------------------------------------------------------------------------
Note (A) Significant Accounting Policies: Alleghany Funds (formerly CT&T Funds)
(the "Company") operates as a series company, ten series of which are covered by
these financial statements: Alleghany/Montag & Caldwell Growth Fund (the "Growth
Fund"), Alleghany/Chicago Trust Growth & Income Fund (the "Growth & Income
Fund"), Alleghany/Chicago Trust Talon Fund (the "Talon Fund"), Alleghany/Chicago
Trust Small Cap Value Fund (the "Small Cap Value Fund"), Alleghany/Veredus
Aggressive Growth Fund (the "Aggressive Growth Fund"), Alleghany/Montag &
Caldwell Balanced Fund (the "M&C Balanced Fund"), Alleghany/Chicago Trust
Balanced Fund (the "CT Balanced Fund"), Alleghany/Chicago Trust Bond Fund (the
"Bond Fund"), Alleghany/Chicago Trust Municipal Bond Fund (the "Municipal Bond
Fund"), and Alleghany/Chicago Trust Money Market Fund (the "Money Market Fund")
(each a "Fund" and collectively, the "Funds"). The Company is an open-end
management investment company, 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 Adviser for the Fund, which commenced
investment operations on November 2, 1994. Effective June 28, 1996, the Fund
offered two classes of shares: Class I Shares and Class N 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 Adviser 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 Adviser for the
Fund with Talon as Sub-Adviser.
The Small Cap Value Fund seeks long-term total return by investing primarily in
common stocks of small U.S. companies and/or realestate investment trusts
(REITs). Chicago Trust is the Adviser for the Fund, which commenced investment
operations on November 10, 1998.
The Aggressive Growth Fund seeks to provide capital appreciation by investing
primarily in equity securities of companies with accelerating earnings. Veredus
Asset Management LLC is the Adviser for the Fund, which commenced investment
operations on July 2, 1998.
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 Adviser for the Fund, which commenced
investment operations on November 2, 1994. Effective December 31, 1998, the Fund
is offering two classes of shares: Class I Shares and Class N Shares.
The CT Balanced Fund seeks growth of capital with current income. 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 Adviser for the
Fund, which commenced investment operations an September 21, 1995.
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 Adviser for the Fund, which commenced investment operations on December
13, 1993.
47
<PAGE>
ALLEGHANY FUNDS
Notes to Financial Statements - continued (unaudited) April 30, 1999
- --------------------------------------------------------------------------------
The Municipal Bond Fund seeks a high level of current interest income exempt
from Federal income taxes consistent with the conservation of capital. The Fund
seeks to achieve its objective by investing substantially all of its assets in a
diversified portfolio of municipal debt obligations. Chicago Trust is the
Adviser 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
Adviser for the Fund, which commenced investment operations on December 14,
1993.
The following is a summary of the significant accounting policies consistently
followed by each Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
(1) Security Valuation: For the Growth Fund, the Growth & Income Fund, the
Talon Fund, the Small Cap Value Fund, the Aggressive Growth Fund, the M&C
Balanced Fund and the CT 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 M&C Balanced Fund, the CT Balanced
Fund, the Bond Fund, and the Municipal Bond Fund, fixed income securities,
except short-term investments, are valued on the basis of prices provided by
a pricing service when such prices are believed by the Adviser 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 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 Adviser,
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.
48
<PAGE>
ALLEGHANY FUNDS
Notes to Financial Statements - continued (unaudited) April 30, 1999
- --------------------------------------------------------------------------------
(4) Mortgage Backed Securities: The Growth & Income Fund, the M&C Balanced
Fund, the CT Balanced Fund, the Bond Fund and the Municipal Bond Fund may
invest in mortgage backed securities (MBS), representing interests in pools
of mortgage loans. These securities provide shareholders with payments
consisting of both principal and interest as the mortgages in the underlying
mortgage pools are paid. Most of the securities are guaranteed by federally
sponsored agencies - Government National Mortgage Association (GNMA), Federal
National Mortgage Association (FNMA) or Federal Home Loan Mortgage
Corporation (FHLMC). However, some securities may be issued by private, non-
government corporations. MBS issued by private agencies are not government
securities and are not directly guaranteed by any government agency. They are
secured by the underlying collateral of the private issuer. Yields on
privately issued MBS tend to be higher than those of government backed
issues. However, risk of loss due to default and sensitivity to interest rate
fluctuations are also higher.
The Growth & Income Fund, the Aggressive Growth Fund, the M&C Balanced Fund,
the CT Balanced Fund, the Bond Fund and the Municipal 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 IO security is a class of MBS representing ownership in the cash flows of
the interest payments made from a specified pool of MBS. The cash flow on
this instrument decreases as the mortgage principal balance is repaid by the
borrower.
(5) Investment Income and Securities Transactions: Dividend income is
recorded on the ex-dividend date. Interest income is accrued daily.
Securities transactions are accounted for on the date securities are
purchased or sold. The cost of securities sold is determined using the first-
in-first-out method.
(6) Federal Income Taxes: The Funds have elected to be treated as "regulated
investment companies" under Sub-chapter M of the Internal Revenue Code and to
distribute substantially all of their respective net taxable income.
Accordingly, no provisions for federal income taxes have been made in the
accompanying financial statements. The Funds intend to utilize provisions of
the federal income tax laws which allow them to carry a realized capital loss
forward for eight years following the year of the loss and offset such losses
against any future realized capital gains. At October 31, 1999, the losses
amounted to $306,661 for the Talon Fund and $34,725 for the Municipal Bond
Fund, which will expire October 31, 2006 and October 31, 2003, respectively.
Net realized gains or losses may differ for financial and tax reporting
purposes for the M&C Growth Fund, the CT Balanced Fund and the M&C Balanced
Fund primarily as a result of losses from wash sales which are not recognized
for tax purposes until corresponding shares are sold.
(7) Dividends and Distributions: Dividends and distributions to shareowners
are recorded on the ex-dividend date.
(8) Organization Costs: The Funds have reimbursed the Advisers for certain
costs incurred in connection with the Funds' and Company's organization. The
costs are/were 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; September 21, 1995 for the CT Balanced Fund and
July 2, 1998 for the Aggressive Growth 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 reporting period. Actual results could differ from those estimates.
49
<PAGE>
ALLEGHANY FUNDS
Notes to Financial Statements - continued (unaudited) April 30, 1999
- --------------------------------------------------------------------------------
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 Small Cap Value Fund, the Aggressive Growth Fund, the M&C Balanced
Fund and the CT Balanced Fund, dividends from net investment income are
distributed quarterly and net realized gains from investment transactions, if
any, are distributed to shareowners annually. The Bond Fund and the Municipal
Bond Fund distribute their respective net investment income to shareowners
monthly and capital gains, if any, are distributed annually. The Money Market
Fund declares dividends daily from its net investment income. The Money Market
Fund's dividends are payable monthly and are automatically reinvested in
additional Fund shares, at the month-end net asset value, for those shareowners
that have elected the reinvestment option. Differences in dividends per share
between classes of the Growth Fund and the M&C Balanced Fund are due to
different class expenses. In January 1999, the Funds provided tax information to
shareowners for the 1998 calendar year.
Net investment income and realized gains and losses for federal income tax
purposes may differ from that reported on the financial statements because of
permanent book and tax basis differences. Distributions from net realized gains
for book purposes may include short-term capital gains, which are included as
ordinary income for tax purposes.
Note (C) Shares of Beneficial Interest: Each Fund is authorized to issue an
unlimited number of shares of beneficial interest with no par value. At April
30, 1999, Chicago Trust and its affiliates owned 1 share of the Small Cap Value
Fund, and 1 share of the Aggressive Growth Fund.
Note (D) Investment Transactions: Aggregate purchases and proceeds from sales of
investment securities (other than short-term investments) for the six months
ended April 30, 1999 were:
<TABLE>
<CAPTION>
Aggregate Purchases Proceeds from Sales
U.S. Government Other U.S. Government Other
--------------- ------------ --------------- -------------
<S> <C> <C> <C> <C>
Growth Fund $ - $ 562,760,244 $ - $248,636,100
Growth & Income Fund - 78,374,055 - 40,691,781
Talon Fund - 8,991,159 - 10,723,829
Small Cap Value Fund - 51,234,605 - 13,158,586
Aggressive Growth Fund - 31,543,570 - 24,814,543
M&C Balanced Fund 11,052,011 33,134,247 6,622,015 22,792,752
CT Balanced Fund 26,010,762 29,361,729 6,019,784 25,056,203
Bond Fund 26,237,378 9,626,713 16,904,166 14,553,166
Municipal Bond Fund - 5,387,596 - 1,893,111
</TABLE>
Note (E) Advisory, Administration and Distribution Services Agreements: Under
various Advisory Agreements with the Funds, each Adviser provides investment
advisory services to the Funds. The Funds will pay advisory fees at the
following annual percentage rates of the average daily net assets of each Fund:
0.80% on the first $800,000,000 of average daily net assets and 0.60% of average
daily net assets over $800,000,000 for the Growth Fund, 0.70% for the Growth &
Income Fund, 0.80% for the Talon Fund; 1.00% for the Small Cap Value Fund; 1.00%
for the Aggressive Growth Fund; 0.75% for the M&C Balanced Fund; 0.70% for the
CT 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.
For the year ending October 31, 1999, the Advisers have contractually undertaken
to reimburse the Talon Fund, the Small Cap Value Fund, the Aggressive Growth
Fund, and the Bond Fund, for operating expenses which cause total expenses to
exceed 1.30%, 1.40%, 1.40%, and 0.80%, respectively. The Advisers have
voluntarily undertaken to reimburse the Growth Fund (Class I and Class N),
Growth & Income Fund, the M&C Balanced Fund (Class I and Class N), the CT
Balanced Fund and the Municipal Bond Fund for operating expenses which cause
total expenses to exceed 0.98%, 1.30%, 1.10%, 1.00%, 1.25%, 1.10%, and 0.10%
respectively. The voluntary expense reimbursements may be terminated at the
discretion of the Advisers.
For the six months ended April 30, 1999, the Advisers waived/reimbursed expenses
of $20,717 for the Talon Fund, $25,372 for the Small Cap Value Fund, $22,453 for
the Aggressive Growth Fund, $101,850 for the Bond Fund and $83,074 for the
Municipal Bond Fund.
50
<PAGE>
ALLEGHANY FUNDS
Notes to Financial Statements- Continued (unaudited) April 30, 1999
- --------------------------------------------------------------------------------
Chicago Trust serves as Administrator of the Funds. Prior to December 17, 1998,
Chicago Trust received fees equivalent to the sub-administration fee schedule.
Effective December 17, 1998, the administration fee schedule is as follows:
<TABLE>
<CAPTION>
Administration Fees
-------------------
Fee (% of Funds' aggregate Average Daily Net Assets
-------------------------- ------------------------
daily net assets)
-----------------
<S> <C>
0.060 up to $2 billion
0.050 $2 billion to $7 billion
0.045 over $7 billion
</TABLE>
First Data Investor Services Group, Inc. ("Investor Services Group") serves as
sub-administrator of the Funds and receives following fees, which are paid to
Investor Services Group by the Administrator.
<TABLE>
<CAPTION>
Sub-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>
First Data Distributors, Inc. serves as principal underwriter and distributor of
the Funds' shares. Pursuant to a Rule 12b-1 distribution plan (the "Plan")
adopted by the Funds, the Growth Fund Class N, the Growth & Income Fund, the
Talon Fund, the Small Cap Value Fund, the Aggressive Growth Fund, the M&C
Balanced Fund Class N, the CT Balanced Fund, the Bond Fund, and the Municipal
Bond Fund pay certain expenses associated with the distribution of their shares.
Under the Plan, each Fund may pay actual expenses not exceeding, on an annual
basis, 0.25% (currently, the Municipal Bond Fund's Rule l2b-1 fee is reduced to
0.10%) of each participating Fund's average daily net assets. The Growth Fund
Class I, the M&C Balanced Fund Class I and the Money Market Fund do not have
distribution plans.
For the six months ended April 30, 1999, the class specific expenses of the
Growth Fund and the M&C Balanced Fund were:
<TABLE>
<CAPTION>
Growth Fund M&C Balanced
Class N Class I Class N Class I
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Transfer agent fees.............. $326,524 $ 10,071 $ 21,064 $ 5,496
Registration expenses............ 84,684 81,176 9,551 12,781
Legal fees....................... 11,477 10,924 1,413 389
Reports to shareowner expenses... 43,949 16,444 3,914 836
</TABLE>
Certain officers and Trustees of the Company are also officers and directors of
Chicago Trust. The Company does not compensate its officers or affiliated
Trustees. Effective January 1, 1999, the Company pays each unaffiliated Trustee
$3,000 per Board of Trustees' meeting attended and an annual retainer of $3,000
and reimburses each unaffiliated Trustee for out-of-pocket expenses.
Note (F) Year 2000 Compliance: The Company utilizes a number of computer
programs across its entire operation relying on both internal software systems
as well as external software systems provided by third parties. Like other
businesses around the world, the Company could be adversely affected if these or
other systems are unable to perform their intended functions effectively after
1999 because of the systems' inability to distinguish the year 2000 from the
year 1900. This is commonly known as the "Year 2000 problem." The Company has
completed its assessment of all mission critical systems. All mission critical
hardware and software systems utilized by the Company in its business have been
certified as Year 2000 compliant by the appropriate vendor. The Company is in
the process of validation testing of all such systems. Testing is scheduled to
be completed by June 30, 1999. There can be no assurance, however, that these
steps will be sufficient to avoid any adverse impact on the Funds' from this
problem, but we do not anticipate that the move to Year 2000 will have a
material impact on the Funds.
51
<PAGE>
ALLEGHANY FUNDS
Notes to Financial Statements - continued (unaudited) April 30, 1999
- --------------------------------------------------------------------------------
Note (G) Subsequent Events: After the close of business on April 30, 1999, the
Company added two new series, Alleghany/Blairlogie Emerging Markets Fund and
Alleghany/Blairlogie International Developed Fund.
At a June 17, 1999 shareholders' meeting, four additional unaffiliated Trustees
will stand for election. If elected, each will receive the current meeting and
retainer fees and be reimbursed for out-of-pocket expenses.
The Company has filed a Post-Effective Amendment on April 30, 1999 for the
purpose of adding Class I Shares to the Growth & Income Fund and the CT Balanced
Fund. Class I Shares are expected to be offered to the public on or about July
5, 1999.
52
<PAGE>
GUIDE TO SHAREHOLDER BENEFITS
We're delighted to offer all Alleghany Funds shareholders a variety of services
and convenient options. To receive more information about any of these benefits,
simply call a Shareholder Services Representative Monday through Friday, 9 a.m.
- -7 p.m. ET.
The Easy Way to Grow Your Account: Start an Automatic Investment Plan/1/
Systematic investing is an easy, effortless way to help reach any investment
goal. Just choose a fixed amount, and we'll automatically deduct it from your
checking or savings account on a regular schedule and invest it in your
Alleghany Funds account. The service is free, and the minimum initial investment
is $50.
Compound Your Earnings with Automatic Dividend Reinvestment
By automatically reinvesting dividends into your Alleghany Funds account, your
profits can mount. Monthly and quarterly dividends, and annual capital gain
distributions, are reinvested at no charge.
Free, Flexible Exchange Privileges
As your personal needs change, so can your Alleghany Funds investment. Transfers
between our funds are free of charge, and it only takes a telephone call.
Low Minimum Initial Investments
The minimum initial investment for all Alleghany Funds is just $2,500 ($500 for
IRAs). And subsequent investments can be as low as $50.
Free Check Writing Services Available
If you are an investor of the Alleghany/Chicago Trust Money Market Fund, you can
take advantage of free check writing privileges. The minimum amount for each
check is $500.
Access Information and Make Transactions Online at Our Web Site
You can access account balances, obtain fund information and make transactions
online 24 hours a day, 7 days a week -- in complete security. Alleghany Funds
was among the first mutual fund companies to provide these capabilities.
www.alleghanyfunds.com
Our Shareholder Services Line is
at Your Service 24 Hours a Day 1-800-992-8151
- --------------------------------------------------------------------------------
Shareholder Services Representatives are available to assist you Monday - Friday
9 a.m. to 7 p.m., ET. Or, call any time, day or night, for automated account
information to make exchanges or check fund performance.
/1/PERIODIC INVESTMENT PLANS INVOLVE CONTINOUS INVESTMENTS IN SECURITIES
REGARDLESS OF PRICE. YOU SHOULD CONSIDER YOUR FINANCIAL ABILITY TO CONTINUE TO
PURCHASE SHARES THROUGH PERIODS OF BOTH HIGH AND LOW PRICE LEVELS.
<PAGE>
[ALLEGHANY LOGO APPEARS HERE]
ALLEGHANY FUNDS
TRUSTEES
- --------
Leonard F. Amari*
Stuart D. Bilton, Chairman
Gregory T. Mutz*
Nathan Shapiro*
*Unaffiliated Trustee
ADVISERS
- --------
The Chicago Trust Company
171 North Clark Street
Chicago, IL 60601
Montag & Caldwell, Inc.
3455 Peachtree Road, NE, Suite 1200
Atlanta, GA 30326
Veredus Asset Management LLC
6900 Bowling Boulevard, Suite 250
Louisville, KY 40207
Blairlogie Capital Management
125 Princes Street
Edinburgh EH2 4AD
Scotland
SHAREHOLDER SERVICES
- --------------------
First Data Investor Services Group, Inc.
4400 Computer Drive
Westborough, MA 01581
DISTRIBUTOR
- -----------
First Data Distributors, Inc.
4400 Computer Drive
Westborough, MA 01581
OFFICERS
- --------
Kenneth C. Anderson, President
Debra Bunde Comsudes, Vice President
Gerald F. Dillenburg, Vice President, Secretary and Treasurer
Laura M. Hlade, Assistant Treasurer
CUSTODIAN
- ---------
Bankers Trust
One Bankers Trust Place
New York, NY 10001
LEGAL COUNSEL
- -------------
Sonnenschein Nath & Rosenthal
8000 Sears Tower
Chicago, IL 60606
AUDITOR
- -------
KPMG Peat Marwick LLP
303 East Wacker Drive
Chicago, IL 60601
This report is submitted for general information to the shareholders of the
funds. it is not authorized for distribution to prospective investors in the
funds unless preceded or accompanied by an effective prospectus which includes
details regarding the funds' objectives, policies, expenses and other
information.
AG-07 7/99
