(LOGO)
AQUINAS FUNDS
SEMI-ANNUAL REPORT
JUNE 30, 1997
AQUINAS FUNDS
DEAR AUGUST 1997
SHAREHOLDER:
You have received excellent financial returns and excellent results with our
"Catholic value" investor activities during the first half of 1997. As you are
aware, the year began with a general market move upward and then a quick
downfall at the end of March. Our long term investing style remained consistent
and we continued to buy securities during the down period, which resulted in all
funds being fully invested when the markets resumed their positive course. You
benefited from our approach to long term investing and we are proud of the
results. OUR POINT IS THIS - YOU CAN HAVE GOOD FINANCIAL PERFORMANCE AND BE A
SOCIALLY RESPONSIBLE FUND AT THE SAME TIME.
Impressive results in the equity markets provided wonderful returns in the first
half of 1997 and over the last three years. The financial results reflect the
fact that over time our style will provide total returns consistent with risk.
Short-term volatility cannot be avoided. For this reason, we recommend our funds
for the long-term investor and not for investors that seek to time the market or
who cannot bear the risk that redemption might be required during a down market.
We are very pleased to report the following total returns:
SIX ONE THREE YEAR AVERAGE ANNUAL
TOTAL RETURNS AS OF 6/30/97 MONTHS YEAR AVERAGE ANNUAL SINCE INCEPTION<F1>
--------------------------- ------ ---- -------------- ------------------
Aquinas Equity Income 13.3% 22.6% 23.6% 16.3%
Aquinas Equity Growth 13.6% 26.0% 23.4% 18.4%
Aquinas Balanced 8.0% 16.3% 16.2% 12.0%
Aquinas Fixed Income 2.8% 7.6% 7.2% 5.1%
<F1> Inception date: January 3, 1994. Returns shown include the reinvestment of
dividends. Performance reflects fee waivers in effect. Absent fee waivers,
total returns would be reduced. Past performance is not predictive of
future results. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than the
original cost.
If you are on the finance committee of a Catholic organization, you may not be
aware of the Catholic investing guidelines, which were approved by the National
Conference of Catholic Bishops a decade ago. Please call us for more information
if you would like to consider them for your organization. Diocese and religious
orders, Catholic organizations, schools and others have learned that you do not
have to give up financial returns in order to invest in a socially responsible
and Catholic value manner. We are proud that our ever-expanding client base has
the confidence and fortitude to participate in a new level of value leadership.
We have many investors of other denominations that appreciate the family values
we encourage in the corporations in our portfolios. Ask a CEO in private about
his or her value system and you will learn that it's not that much different
from yours or mine. But sometimes those values stop when the CEO enters the
boardroom door. It also may be true of corporate directors. Our style is to
remind management of those basic values and promote applying values to the
workplace. Results are happening.
For those interested in the Internet World Wide Web, we are starting a Web page
at www.aquinasfunds.com which we will be adding to over the next few months.
Please refer to it for details about the Funds and the Catholic value activities
in which we are involved.
Sometimes shareholders ask how we have been able to achieve such good financial
results in our activities. The answer is simple. Aquinas Investment Advisers,
Inc., our investment adviser and a subsidiary of THE CATHOLIC FOUNDATION, has
hired portfolio management companies which meet a rigorous criteria for
performance and are willing to remain consistent in their investment style. We
monitor them closely, and a major outside consulting company is used to compare
our results with similar style managers. Our board of directors is first class
and has many years of investment experience. This experience is fully utilized
in the board decision process. All of these factors, combined with our long term
investment philosophy, have proven to be successful for our shareholders.
The following are comments on just some of the Catholic value issues in which we
are concerned:
ABORTION - The international rights to produce the RU-486 abortion pill have
been released by Hoescht, the German drug giant, as a result of a consumer
boycott in which we participated. We have postcards available for any
shareholder that desires to notify the Hoescht U.S. subsidiary, Marion Merrill
Dow, that they are aware of their involvement with RU-486. The drug companies in
our portfolios will not be involved in the production or distribution of RU-486.
VIOLENCE IN THE MEDIA - More success here! Congress has passed the Violence (V)-
chip law to develop a TV rating system. NBC-TV (owned by GE) has the lowest
level of violence on TV, and has the highest ratings! The new television rating
system is giving parents an automated method to control the viewing habits of
their children. It also provides some networks with the opportunity to offer
more adult programming than in the past. Ultimately, it is the parents who are
responsible for their children; but, as a society, we can help them through
corporate governance of the airwaves. Those that state that a parent can turn
off the TV if they do not want their children to watch certain programs are
either intellectually dishonest or naive as a parent. In addition, we have asked
some of our companies to declare what their advertising policies are with regard
to ratings of a very mature nature (TV-14, TV-M). THE ANNUAL UCLA STUDY ON
VIOLENCE REVEALS THAT VIOLENCE ON TV IS AT ITS LOWEST LEVEL IN YEARS! WE WILL
GIVE THE RATINGS SYSTEM TIME TO ALLOW PARENTS TO UTILIZE IT IN THEIR BEST
INTEREST WHILE THE SYSTEM IS BEING ADJUSTED TO BE MORE INFORMATIVE.
GENDER DISCRIMINATION - We were involved with a major food service company which
appeared to discriminate against women, AND WE ARE PLEASED THAT THEY HAVE
RECENTLY PROMOTED FIVE WOMEN TO SENIOR MANAGEMENT POSITIONS. We have
communicated with a number of companies on this topic.
RACE DISCRIMINATION - Texaco is a terrible story about racism at high levels in
a major company. As a shareholder, we are intent on holding Texaco's feet to the
fire on this issue. The head of Texaco, Peter Bijur, has appeared at a meeting
of the Interfaith Center for Corporate Responsibility (ICCR), of which we are a
member, to explain their response to the revelations of November. Texaco has
made diversity worth 20% of an employee's performance appraisal according to a
senior Texaco representative!
As you can see, your money is working overtime for you. You are receiving good
total returns and you can see that results are being obtained in the socially
responsible areas! We thank our shareholders for their continued confidence in
The Aquinas Funds.
Sincerely,
/s/ Frank Rauscher
Frank Rauscher
President and Treasurer
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
FIXED INCOME EQUITY INCOME EQUITY GROWTH BALANCED
FUND FUND FUND FUND
---- ---- ---- ----
ASSETS:
Investments at value
(cost $38,632,781,
$47,209,533,
$22,830,335
and $23,243,193,
respectively) $38,985,258 $61,716,403 $29,183,530 $27,144,127
Cash -- -- -- 49,288
Interest and dividends
receivable 583,116 172,511 13,919 180,723
Receivable for
securities sold 15,224 1,076,221 62,640 249,801
Prepaid expenses 10,965 10,999 11,288 6,946
Organizational
expenses, net of
accumulated
amortization 4,405 4,405 4,405 4,405
----------- ----------- ----------- -----------
Total Assets 39,598,968 62,980,539 29,275,782 27,635,290
----------- ----------- ----------- -----------
LIABILITIES:
Payable for
securities purchased 1,278,808 278,931 244,624
Dividend payable 186,904 257,810 -- 178,695
Accrued expenses 20,115 27,974 14,404 15,733
Accrued investment
advisory fee 18,006 51,124 23,541 22,352
----------- ----------- ----------- -----------
Total Liabilities 225,025 1,615,716 316,876 461,404
----------- ----------- ----------- -----------
NET ASSETS $39,373,943 $61,364,823 $28,958,906 $27,173,886
=========== =========== =========== ===========
NET ASSETS CONSIST OF:
Capital stock $ 398 $ 411 $ 190 $ 221
Paid-in capital in
excess of par 39,501,299 43,079,697 21,466,570 21,356,047
Undistributed net
investment income -- -- 309 --
Undistributed net
realized gain (loss)
on investments (480,231) 3,777,845 1,138,642 1,916,684
Net unrealized
appreciation
on investments 352,477 14,506,870 6,353,195 3,900,934
----------- ----------- ----------- -----------
NET ASSETS $39,373,943 $61,364,823 $28,958,906 $27,173,886
=========== =========== =========== ===========
CAPITAL STOCK,
$.0001 PAR VALUE:
Authorized 125,000,000 125,000,000 125,000,000 125,000,000
Issued and outstanding 3,982,622 4,109,178 1,899,846 2,209,389
NET ASSET VALUE,
REDEMPTION PRICE AND
OFFERING PRICE PER SHARE $9.89 $14.93 $15.24 $12.30
===== ====== ====== ======
See notes to financial statements.
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
FIXED INCOME EQUITY INCOME EQUITY GROWTH BALANCED
FUND FUND FUND FUND
---- ---- ---- ----
INVESTMENT INCOME:
Interest $1,268,032 $ 44,384 $ 29,305 $ 393,283
Dividends -- 854,898 78,907 164,580
---------- ---------- ---------- ----------
1,268,032 899,282 108,212 557,863
---------- ---------- ---------- ----------
EXPENSES:
Investment advisory
fees 113,220 285,675 123,143 142,345
Administration and
fund accounting fees 33,428 50,532 21,757 25,230
Shareholder servicing
fees 16,079 17,783 14,539 14,918
Federal and state
registration fees 10,595 8,495 9,172 6,071
Pricing fees 5,191 1,724 2,466 7,724
Other 4,749 9,125 2,628 3,551
Audit fees 4,171 6,552 2,829 3,265
Legal fees 3,118 4,642 1,975 2,439
Custody fees 2,966 3,064 4,702 5,964
Reports to shareholders 2,245 3,349 1,418 1,760
Amortization of
organization expenses 1,452 1,452 1,452 1,452
Insurance 274 403 168 219
---------- ---------- ---------- ----------
Total expenses before
waiver 197,488 392,796 186,249 214,938
Waiver of fees (8,773) -- (1,548) (7,117)
---------- ---------- ---------- ----------
Net Expenses 188,715 392,796 184,701 207,821
---------- ---------- ---------- ----------
NET INVESTMENT INCOME
(LOSS) 1,079,317 506,486 (76,489) 350,042
---------- ---------- ---------- ----------
REALIZED AND UNREALIZED
(LOSS) GAIN:
Net realized (loss)
gain on investments (29,167) 3,837,556 1,228,440 1,925,801
Change in unrealized
appreciation/
depreciation on
investments (24,755) 3,085,544 2,159,807 (143,950)
---------- ---------- ---------- ----------
Net (Loss) Gain on
Investments (53,922) 6,923,100 3,388,247 1,781,851
---------- ---------- ---------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM
OPERATIONS $1,025,395 $7,429,586 $3,311,758 $2,131,893
========== ========== ========== ==========
See notes to financial statements.
STATEMENTS OF CHANGES IN NET ASSETS
(UNAUDITED)
FIXED INCOME EQUITY INCOME
FUND FUND
---- ----
Six Months Year Six Months Year
ended ended ended ended
June 30, Dec. 31, June 30, Dec. 31,
1997 1996 1997 1996
------ ------ ------ ------
OPERATIONS:
Net investment
income (loss) $ 1,079,317 $ 1,942,653 $ 506,486 $ 855,841
Net realized gain
(loss) on investments (29,167) 41,413 3,837,556 2,920,709
Change in unrealized
appreciation/
depreciation on
investments (24,755) (940,079) 3,085,544 5,216,409
---------- ---------- ---------- ----------
Net Increase in Net
Assets Resulting
from Operations 1,025,395 1,043,987 7,429,586 8,992,959
---------- ---------- ---------- ----------
DISTRIBUTIONS OF:
Net investment income (1,077,751) (1,957,366) (516,065) (849,533)
Net realized gains -- -- -- (2,896,588)
---------- ---------- ---------- ----------
Total Distributions (1,077,751) (1,957,366) (516,065) (3,746,121)
---------- ---------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Shares sold 4,508,016 4,792,119 4,053,381 8,087,479
Shares issued to
holders in
reinvestment of
distributions 829,219 1,821,795 244,899 3,659,747
Shares redeemed (3,139,930) (4,088,392) (4,031,267) (4,912,154)
---------- ---------- ---------- ----------
Net Increase
(Decrease) 2,197,305 2,525,522 267,013 6,835,072
---------- ---------- ---------- ----------
TOTAL INCREASE
(DECREASE) IN
NET ASSETS 2,144,949 1,612,143 7,180,534 12,081,910
NET ASSETS:
Beginning of period 37,228,994 35,616,851 54,184,289 42,102,379
---------- ---------- ---------- ----------
End of period $39,373,943 $37,228,994 $61,364,823 $54,184,289
========== ========== ========== ==========
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
(UNAUDITED)
EQUITY GROWTH BALANCED
FUND FUND
---- ----
Six Months Year Six Months Year
ended ended ended ended
June 30, Dec. 31, June 30, Dec. 31,
1997 1996 1997 1996
------ ------ ------ ------
OPERATIONS:
Net investment
income (loss) $ (76,489) $ (104,488) $ 350,042 $ 620,320
Net realized gain
(loss) on investments 1,228,440 2,335,310 1,925,801 2,202,647
Change in unrealized
appreciation/
depreciation on
investments 2,159,807 1,597,211 (143,950) 1,145,135
----------- ----------- ----------- -----------
Net Increase in
Net Assets
Resulting
from Operations 3,311,758 3,828,033 2,131,893 3,968,102
----------- ----------- ----------- -----------
DISTRIBUTIONS OF:
Net investment income -- -- (352,134) (625,655)
Net realized gains -- (2,224,193) -- (2,179,125)
----------- ----------- ----------- -----------
Total Distributions -- (2,224,193) (352,134) (2,804,780)
----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Shares sold 4,063,500 4,869,180 1,005,328 2,339,062
Shares issued to
holders in
reinvestment of
distributions -- 2,190,052 165,878 2,785,184
Shares redeemed (1,009,514) (1,981,568) (5,447,086) (3,396,378)
----------- ----------- ----------- -----------
Net Increase
(Decrease) 3,053,986 5,077,664 (4,275,880) 1,727,868
----------- ----------- ----------- -----------
TOTAL INCREASE
(DECREASE) IN
NET ASSETS 6,365,744 6,681,504 (2,496,121) 2,891,190
NET ASSETS:
Beginning of period 22,593,162 15,911,658 29,670,007 26,778,817
End of period $28,958,906 $22,593,162 $27,173,886 $29,670,007
=========== =========== =========== ===========
See notes to financial statements.
FIXED INCOME
FUND
----
Jan. 3,
Six Months Year Year 1994<F1>
ended ended ended through
June 30, Dec. 31, Dec. 31, Dec. 31,
1997 1996 1995 1994
------ ------ ------ ------
Net Asset Value,
Beginning of Period $9.90 $10.17 $9.24 $10.00
Income from Investment
Operations:
Net investment
income (loss) 0.28 0.54 0.54 0.46
Net realized and
unrealized gains
(losses) on
investments (0.01) (0.27) 0.93 (0.77)
------ ------ ------ ------
Total from
Investment
Operations 0.27 0.27 1.47 (0.31)
------ ------ ------ ------
Less Distributions:
Dividends from net
investment income (0.28) (0.54) (0.54) (0.45)
Distributions from
net realized gains -- -- -- --
------ ------ ------ ------
Total Distributions (0.28) (0.54) (0.54) (0.45)
------ ------ ------ ------
Net Asset Value,
End of Period $9.89 $9.90 $10.17 $9.24
====== ====== ====== ======
Total Return<F2> 2.77% 2.83% 16.26% (3.09)%
Supplemental Data and Ratios:
Net assets, end of period
(in thousands) $39,374 $37,229 $35,617 $28,147
Ratio to Average Net
Assets of: <F3>
Expenses, net of waivers
and reimbursements 1.00% 1.00% 0.98% 1.00%
Expenses, before waivers
and reimbursements 1.05% 1.03% 0.98% 1.11%
Net investment income,
net of waivers and
reimbursements 5.73% 5.44% 5.46% 4.84%
Net investment income,
before waivers and
reimbursements 5.68% 5.41% 5.46% 4.73%
Portfolio turnover rate<F2> 46% 169% 126% 139%
Average commission rate
paid on portfolio
investment transactions<F4> N/A N/A N/A N/A
FINANCIAL HIGHLIGHTS (CONT'D.)
(UNAUDITED)
EQUITY INCOME
FUND
----
Jan. 3,
Six Months Year Year 1994<F1>
ended ended ended through
June 30, Dec. 31, Dec. 31, Dec. 31,
1997 1996 1995 1994
------ ------ ------ ------
Net Asset Value,
Beginning of Period $13.26 $11.83 $9.39 $10.00
Income from Investment
Operations:
Net investment
income (loss) 0.12 0.23 0.28 0.32
Net realized and
unrealized gains
(losses) on investments 1.68 2.18 3.03 (0.61)
------ ------ ------ ------
Total from Investment
Operations 1.80 2.41 3.31 (0.29)
------ ------ ------ ------
Less Distributions:
Dividends from net
investment
income (0.13) (0.23) (0.28) (0.32)
Distributions from
net realized gains -- (0.75) (0.59) --
------ ------ ------ ------
Total Distributions (0.13) (0.98) (0.87) (0.32)
------ ------ ------ ------
Net Asset Value,
End of Period $14.93 $13.26 $11.83 $9.39
====== ====== ====== ======
Total Return<F2> 13.60% 20.43% 35.62% (2.93)%
Supplemental Data and Ratios:
Net assets, end of period
(in thousands) $61,365 $54,184 $42,102 $32,217
Ratio to Average Net
Assets of: <F3>
Expenses, net of waivers
and reimbursements 1.38% 1.40% 1.37% 1.45%
Expenses, before waivers
and reimbursements 1.38% 1.40% 1.37% 1.45%
Net investment income,
net of waivers and
reimbursements 1.78% 1.79% 2.47% 3.33%
Net investment income,
before waivers and
reimbursements 1.78% 1.79% 2.47% 3.33%
Portfolio turnover rate<F2> 27% 32% 40% 106%
Average commission rate
paid on portfolio
investment transactions<F4> $0.0558 $0.0554 N/A N/A
FINANCIAL HIGHLIGHTS (CONT'D.)
(UNAUDITED)
EQUITY GROWTH
FUND
----
Jan. 3,
Six Months Year Year 1994<F1>
ended ended ended through
June 30, Dec. 31, Dec. 31, Dec. 31,
1997 1996 1995 1994
------ ------ ------ ------
Net Asset Value,
Beginning of Period $13.45 $12.13 $9.31 $10.00
Income from Investment
Operations:
Net investment
income (loss) (0.04) (0.06) (0.01) 0.01
Net realized and
unrealized gains
(losses) on investments 1.83 2.84 2.83 (0.69)
------ ------ ------ ------
Total from Investment
Operations 1.79 2.78 2.82 (0.68)
------ ------ ------ ------
Less Distributions:
Dividends from net
investment income -- -- -- (0.01)
Distributions from net
realized gains -- (1.46) -- --
------ ------ ------ ------
Total Distributions -- (1.46) -- (0.01)
------ ------ ------ ------
Net Asset Value,
End of Period $15.24 $13.45 $12.13 $9.31
====== ====== ====== ======
Total Return<F2> 13.31% 22.90% 30.29% (6.78)%
Supplemental Data and Ratios:
Net assets, end of period
(in thousands) $28,959 $22,593 $15,912 $10,104
Ratio to Average Net
Assets of: <F3>
Expenses, net of waivers
and reimbursements 1.50% 1.50% 1.50% 1.50%
Expenses, before waivers
and reimbursements 1.52% 1.54% 1.61% 1.76%
Net investment income,
net of waivers and
reimbursements (0.62)% (0.55)% (0.10)% 0.14%
Net investment income,
before waivers and
reimbursements (0.64)% (0.59)% (0.21)% (0.12)%
Portfolio turnover rate<F2> 52% 112% 102% 98%
Average commission rate
paid on portfolio
investment transactions<F4> $0.0622 $0.0649 N/A N/A
FINANCIAL HIGHLIGHTS (CONT'D.)
(UNAUDITED)
BALANCED
FUND
----
Jan. 3,
Six Months Year Year 1994<F1>
ended ended ended through
June 30, Dec. 31, Dec. 31, Dec. 31,
1997 1996 1995 1994
------ ------ ------ ------
Net Asset Value,
Beginning of Period $11.53 $11.03 $9.43 $10.00
Income from Investment
Operations:
Net investment income 0.15 0.26 0.32 0.26
Net realized and
unrealized gains
(losses) on investments 0.77 1.41 1.84 (0.57)
------ ------ ------ ------
Total from
Investment Operations 0.92 1.67 2.16 (0.31)
------ ------ ------ ------
Less Distributions:
Dividends from net
investment income (0.15) (0.26) (0.33) (0.26)
Distributions from net
realized gains -- (0.91) (0.23) --
------ ------ ------ ------
Total Distributions (0.15) (1.17) (0.56) (0.26)
------ ------ ------ ------
Net Asset Value,
End of Period $12.30 $11.53 $11.03 $9.43
====== ====== ====== ======
Total Return<F2> 8.03% 15.29% 23.14% (3.06)%
Supplemental Data and Ratios:
Net assets, end of
period (in thousands) $27,174 $29,670 $26,779 $30,114
Ratio to Average Net
Assets of:<F3>
Expenses, net of waivers
and reimbursements 1.46% 1.44% 1.46% 1.49%
Expenses, before waivers
and reimbursements 1.51% 1.49% 1.46% 1.49%
Net investment income,
net of waivers and
reimbursements 2.47% 2.23% 2.93% 2.75%
Net investment income,
before waivers and
reimbursements 2.42% 2.18% 2.93% 2.75%
Portfolio turnover rate<F2> 49% 111% 118% 111%
Average commission rate
paid on portfolio
investment transactions<F4> $0.0566 $0.0635 N/A N/A
<F1> Commencement of operations.
<F2> Not annualized for the periods from January 3, 1994 through December 31,
1994 and January 1, 1997 through June 30, 1997.
<F3> Annualized for the periods from January 3, 1994 through December 31, 1994
and January 1, 1997 through June 30, 1997.
<F4> Disclosure of this rate is required by the Securities and Exchange
Commission on a prospective basis beginning in 1996.
See notes to financial statements.
FIXED INCOME FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
Principal
Amount Value
--------- -----
FIXED INCOME BONDS 93.66%
ASSET-BACKED SECURITIES 10.69%
$275,000 Amresco Residential Securities
Mortgage Loan Trust,
8.075%, 4/25/26 $ 285,862
300,000 Amresco Residential Securities
Mortgage Loan Trust,
7.615%, 3/25/27 302,145
275,000 Amresco Residential Securities
Mortgage Loan Trust,
7.05%, 4/25/27 273,963
375,000 Chase Manhattan Auto Owner Trust,
6.25%, 11/15/00 375,067
375,000 Citibank Credit Card Master Trust,
6.55%, 2/16/04 372,994
400,000 Delta Funding Home Equity Loan Trust,
7.25%, 12/25/26 408,464
300,000 Ford Credit Auto Trust,
6.50%, 11/15/99 302,103
250,000 Green Tree Financial Corp.,
6.35%, 12/15/26 248,325
375,000 MBNA Master Credit Card Trust,
6.60%, 11/15/04 375,674
400,000 Olympic Auto Trust,
6.625%, 12/15/02 401,532
350,000 Premier Auto Trust,
6.50%, 3/6/00 351,250
375,000 UCFC Home Equity Loan Trust,
7.825%, 12/15/27 383,138
129,517 Union Federal Savings Bank Trust,
4.875%, 2/15/00 128,585
-----------
4,209,102
-----------
CORPORATE BONDS 49.55%
467,000 American Express Credit Corp.,
8.50%, 6/15/99 485,811
Principal
Amount Value
--------- -----
CORPORATE BONDS 49.55% (CONT'D.)
$525,000 Associates Corp. of North America,
7.75%, 2/15/05 $557,408
500,000 BarclaysAmerican Corp.,
7.875%, 8/15/98 509,425
500,000 Bellsouth Capital Funding,
6.04%, 11/15/26 492,070
600,000 Citicorp, 8.00%, 2/1/03 631,488
375,000 Coca-Cola Enterprises, Inc.,
7.00%, 10/1/26 379,005
600,000 Commercial Credit Co.,
7.875%, 2/1/25 641,676
420,000 Compania Telecom Chile,
7.625%, 7/15/06 431,407
400,000 Corporation Andina de Fomento,
7.10%, 2/1/03 400,128
350,000 El Paso Natural Gas Co.,
6.75%, 11/15/03 345,702
800,000 Ford Motor Credit,
8.375%, 1/15/00 835,056
629,000 General Electric Capital Corp.,
8.30%, 9/20/09 700,781
300,000 General Motors Acceptance Corp.,
6.75%, 2/7/02 299,856
600,000 General Motors Acceptance Corp.,
8.875%, 6/1/10 692,868
500,000 Grace (W.R.) & Co.,
8.00%, 8/15/04 524,170
550,000 Grand Metropolitan Investment PLC,
7.45%, 4/15/35 570,806
600,000 Heller Financial Corp.,
9.375%, 3/15/98 614,244
550,000 Household Finance Corp.,
7.125%, 4/30/99 557,167
725,000 Hydro Quebec,
8.05%, 7/7/24 786,828
FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 1997 (UNAUDITED)
Principal
Amount Value
--------- -----
CORPORATE BONDS 49.55% (CONT'D.)
$650,000 Lehman Brothers, Inc.,
8.80%, 3/1/15 $ 722,989
400,000 Lockheed Martin Corp.,
6.85%, 5/15/01 401,028
330,000 Motorola, Inc.,
8.40%, 8/15/31 380,975
650,000 Nabisco, Inc.,
6.80%, 9/1/01 650,780
350,000 Nabisco, Inc.,
7.55%, 6/15/15 343,252
300,000 NationsBank Corp.,
8.57%, 11/15/24 344,019
590,000 New Jersey Bell Telephone Co.,
7.85%, 11/15/29 650,569
200,000 Norfolk Southern Corp.,
6.95%, 5/1/02 201,434
500,000 Pacific Gas & Electric Co.,
7.67%, 12/15/98 510,500
385,000 Rodamco NV,
7.30%, 5/15/05 392,523
400,000 Rollins Truck Leasing Corp.,
7.00%, 3/15/01 402,132
400,000 Saloman, Inc.,
7.30%, 5/15/02 403,520
650,000 Southern California Edison Co.,
5.60%, 12/15/98 644,995
420,000 Tenneco, Inc.,
8.075%, 10/1/02 439,274
400,000 Union Pacific Resources,
7.00%, 10/15/06 398,324
380,000 US West Capital Funding, Inc.,
6.85%, 1/15/02 380,863
880,000 WMX Technologies, Inc.,
6.65%, 5/15/05 884,215
900,000 Xerox Corp.,
5.875%, 6/15/37 902,178
-----------
19,509,466
-----------
Principal
Amount Value
--------- -----
U.S. GOVERNMENT AGENCIES 16.73%
$ 355,670 FHLMC, Pool 50361,
9.00%, 11/1/05 $ 370,452
750,000 FHLMC, Series 1576, Class PH,
6.00%, 1/15/08 719,453
400,000 FHLMC, Series 1490, Class C,
6.50%, 5/15/08 392,832
785,900 FHLMC, Pool 555316,
9.00%, 6/1/19 830,845
475,000 FHLMC, Series 1633, Class PK,
6.00%, 9/15/22 451,217
400,000 FHLMC, Series 1577, Class PH,
6.30%, 3/15/23 387,128
475,000 FNMA, 4.875%, 10/15/98 469,865
400,000 FNMA, 6.08%, 9/3/03 385,048
157,337 FNMA, Pool 70497,
9.00%, 12/1/04 163,876
675,000 FNMA, 5.75%, 11/25/17 664,220
850,000 FNMA, Series 1994-59, Class PE,
5.00%, 3/25/22 811,206
350,000 Guaranteed Export Certificates,
6.28%, 6/15/04 345,387
600,000 Tennessee Valley Authority,
6.235%, 7/15/45 595,044
-----------
6,586,573
-----------
U.S. TREASURY OBLIGATIONS 16.69%
785,000 U.S. Treasury Bond,
8.875%, 8/15/17 956,106
425,000 U.S. Treasury Bond,
8.00%, 11/15/21 480,815
300,000 U.S. Treasury Note,
6.125%, 5/15/98 300,987
1,060,000 U.S. Treasury Note,
5.50%, 11/15/98 1,053,598
280,000 U.S. Treasury Note,
7.75%, 1/31/00 290,172
FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 1997 (UNAUDITED)
Principal
Amount Value
--------- -----
U.S. TREASURY OBLIGATIONS 16.69% (CONT'D.)
$ 400,000 U.S. Treasury Note,
7.125%, 2/29/00 $ 408,784
1,400,000 U.S. Treasury Note,
6.25%, 8/31/00 1,399,846
425,000 U.S. Treasury Note,
7.25%, 2/15/04 442,888
260,000 U.S. Treasury Note,
7.50%, 2/15/05 275,077
260,000 U.S. Treasury Note,
7.00%, 7/15/06 267,517
650,000 U.S. Treasury Strips, 2/15/20 136,767
2,990,000 U.S. Treasury Strips, 11/15/21 558,981
-----------
6,571,538
-----------
Total Fixed Income Bonds
(cost $36,524,202) 36,876,679
-----------
REPURCHASE AGREEMENTS 4.31%
1,700,000 UMB Bank, n.a., 5.30%, dated
6/30/97, repurchase price $1,700,250,
maturing 7/1/97 (collateralized by
U.S. Treasury Notes, 8.25%, 7/15/98) 1,700,000
-----------
Total Repurchase Agreements
(cost $1,700,000) 1,700,000
-----------
SHORT-TERM INVESTMENTS 1.04%
408,579 UMB Bank, n.a., Money Market
Fiduciary 408,579
-----------
Total Short-term Investments
(cost $408,579) 408,579
-----------
Total Investments 99.01%
(cost $38,632,781) 38,985,258
-----------
Value
-----
Other assets
less liabilities 0.99% $ 388,685
-----------
NET ASSETS 100.00% $39,373,943
===========
See notes to financial statements.
EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
Number
of Shares Value
--------- -----
COMMON STOCKS 98.32%
AEROSPACE 1.87%
7,900 General Dynamics Corp. $ 592,500
6,300 Northrop Grumman Corp. 553,219
-----------
1,145,719
-----------
APPAREL 1.04%
7,500 VF Corp. 638,438
-----------
AUTOMOTIVE RELATED
INDUSTRIES 2.95%
17,800 Chrysler Corp. 584,063
32,500 Ford Motor Co. 1,226,875
-----------
1,810,938
-----------
BANKING 7.37%
16,100 Bankers Trust New York Corp. 1,400,700
5,600 Chase Manhattan Corp. 543,550
44,800 Mellon Bank Corp. 2,021,600
13,300 PNC Bank Corp. 553,613
-----------
4,519,463
-----------
BREWERIES 0.86%
12,600 Anheuser-Busch Cos., Inc. 528,413
-----------
CHEMICALS 2.77%
10,000 Chemed Corp. 374,375
6,800 Dow Chemical Co. 592,450
11,600 du Pont (E.I.) de Nemours and Co. 729,350
-----------
1,696,175
-----------
COMPUTER EQUIPMENT 2.47%
16,800 International Business Machines
Corp. 1,515,150
-----------
COMPUTER SERVICES 1.00%
15,000 Electronic Data Systems Corp. 615,000
-----------
Number
of Shares Value
--------- -----
CONSTRUCTION 1.15%
9,000 Vulcan Materials Co. $ 706,500
-----------
CONSUMER PRODUCTS 0.58%
9,500 American Greetings Corp., Class A 352,687
-----------
CONSUMER SERVICES 1.38%
32,116 Jostens, Inc. 847,060
-----------
DRUGS 1.99%
8,400 American Home Products Corp. 642,600
16,600 Pharmacia & Upjohn, Inc. 576,850
-----------
1,219,450
-----------
ELECTRIC UTILITIES 5.72%
21,700 DTE Energy Co. 599,462
26,110 Duke Energy Corp. 1,251,648
11,000 FPL Group, Inc. 506,687
29,700 PP&L Resources, Inc. 592,144
28,500 Washington Water Power Co. 559,312
-----------
3,509,253
-----------
ELECTRONICS 4.91%
32,400 AMP, Inc. 1,352,700
16,000 General Electric Co. 1,046,000
7,300 Texas Instruments, Inc. 613,656
-----------
3,012,356
-----------
FINANCIAL SERVICES 1.07%
19,215 Bear Stearns Cos., Inc. 656,913
-----------
FOOD 3.06%
34,300 Supervalu, Inc. 1,183,350
19,050 Sysco Corp. 695,325
-----------
1,878,675
-----------
HOLDING COMPANIES 2.59%
10,600 Fortune Brands, Inc. 395,513
EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 1997 (UNAUDITED)
Number
of Shares Value
--------- -----
HOLDING COMPANIES 2.59%(CONT'D.)
36,100 RJR Nabisco Holdings Corp. $1,191,300
-----------
1,586,813
-----------
HOSPITAL MANAGEMENT AND
SERVICES 0.86%
13,500 Columbia/HCA Healthcare Corp. 530,719
-----------
HOUSEHOLD APPLIANCES 2.07%
48,700 Maytag Corp. 1,272,288
-----------
HOUSEHOLD PRODUCTS 0.68%
26,850 Dial Corp. 419,531
-----------
INSURANCE 6.21%
18,800 American General Corp. 897,700
3,600 CIGNA Corp. 639,000
3,450 General Re Corp. 627,900
10,000 Lincoln National Corp. 643,750
8,900 MBIA, Inc. 1,004,031
-----------
3,812,381
-----------
LEISURE 1.25%
24,600 Brunswick Corp. 768,750
-----------
METAL PRODUCTS 0.93%
7,600 Aluminum Company of America 572,850
-----------
MINING 1.81%
13,000 Newmont Mining Corp. 507,000
7,100 Phelps Dodge Corp. 604,831
-----------
1,111,831
-----------
NATURAL GAS UTILITIES 4.96%
15,200 El Paso Natural Gas Co. 836,000
17,000 Equitable Resources, Inc. 482,375
16,300 NICOR, Inc. 584,762
22,300 Pacific Gas & Electric Co. 540,775
Number
of Shares Value
--------- -----
NATURAL GAS UTILITIES 4.96% (CONT'D.)
16,100 Peoples Energy Corp. $ 602,744
-----------
3,046,656
-----------
OFFICE EQUIPMENT 1.36%
7,000 Harris Corp. 588,000
3,100 Xerox Corp. 244,512
-----------
832,512
-----------
OIL AND GAS 13.43%
10,000 Amerada Hess Corp. 555,625
6,300 Amoco Corp. 547,706
9,000 Atlantic Richfield Co. 634,500
9,000 Chevron Corp. 665,437
18,700 Louisiana Land & Exploration Co. 1,068,237
24,000 Occidental Petroleum Corp. 601,500
12,700 Repsol SA-ADR 538,956
10,100 Texaco, Inc. 1,098,375
10,000 Tidewater, Inc. 440,000
11,000 Transocean Offshore, Inc. 798,875
17,500 Ultramar Diamond Shamrock Corp. 570,937
16,500 Williams Cos., Inc. 721,875
-----------
8,242,023
-----------
PERSONAL SERVICES 1.18%
22,000 Service Corp. International 723,250
-----------
PRINTING AND PUBLISHING 2.16%
20,000 Deluxe Corp. 682,500
6,875 Dun & Bradstreet Corp. 180,469
20,300 Harland (John H.) Co. 463,094
-----------
1,326,063
-----------
RAILROADS 0.91%
16,000 Illinois Central Corp., Series A 559,000
-----------
REAL ESTATE 1.89%
20,000 Excel Realty Trust, Inc. 527,500
Number
of Shares Value
--------- -----
REAL ESTATE 1.89% (CONT'D.)
15,900 Meditrust Corp. $ 633,019
-----------
1,160,519
-----------
RETAIL 2.29%
11,400 Penney (J.C.) Co., Inc. 594,937
24,000 Wal-Mart Stores, Inc. 811,500
-----------
1,406,437
-----------
SEMICONDUCTORS 1.32%
5,700 Intel Corp. 808,331
-----------
STEEL/IRON 1.49%
4,000 Nucor Corp. 229,000
19,500 USX-US Steel Group, Inc. 683,719
-----------
912,719
-----------
TELECOMMUNICATIONS 6.30%
18,200 GTE Corp. 798,525
11,700 NYNEX Corp. 674,213
9,999 SBC Communications, Inc. 618,688
29,700 Southern New England
Telecommunications Corp. 1,154,588
16,400 US West Communications Group 618,075
-----------
3,864,089
-----------
TEXTILES 1.07%
12,500 Springs Industries, Inc., Class A 659,375
-----------
TOBACCO PRODUCTS 1.62%
10,600 Gallaher Group PLC* 195,438
18,000 Philip Morris Cos., Inc. 798,750
-----------
994,188
-----------
TRANSPORTATION 1.75%
18,000 Alexander & Baldwin, Inc. 470,250
10,400 GATX Corp. 600,600
-----------
1,070,850
-----------
Principal
Amount Value
--------- -----
Total Common Stocks
(cost $45,826,495) $60,333,365
-----------
SHORT-TERM INVESTMENTS 2.25%
$1,383,038 UMB Bank, n.a., Money Market
Fiduciary 1,383,038
-----------
Total Short-term Investments
(cost $1,383,038) 1,383,038
-----------
Total Investments 100.57%
(cost $47,209,533) 61,716,403
Liabilities less
other assets (0.57%) (351,580)
-----------
NET ASSETS 100.00% $61,364,823
===========
*Non-income producing security
See notes to financial statements.
EQUITY GROWTH FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
Number
of Shares Value
--------- -----
COMMON STOCKS 93.29%
ADVERTISING 1.88%
3,700 Catalina Marketing Corp.* $ 178,063
9,550 Outdoor Systems, Inc.* 365,288
-----------
543,351
-----------
AEROSPACE 1.59%
4,100 Allied-Signal, Inc. 344,400
1,400 United Technologies Corp. 116,200
-----------
460,600
-----------
APPAREL 0.90%
1,500 Jones Apparel Group, Inc.* 71,625
3,400 Polo Ralph Lauren Corp.* 93,075
3,150 Wolverine World Wide, Inc. 95,681
-----------
260,381
-----------
AUTOMOTIVE RELATED
INDUSTRIES 0.48%
4,000 Federal-Mogul Corp. 140,000
-----------
BANKING 2.89%
3,800 BankAmerica Corp. 245,337
3,100 Chase Manhattan Corp. 300,894
1,000 Citicorp 120,562
2,000 First Bank System, Inc. 170,750
-----------
837,543
-----------
BUSINESS SERVICES 3.78%
3,400 Cincinnati Bell, Inc. 107,100
7,000 Equifax, Inc. 260,312
5,100 Fiserv, Inc.* 227,587
12,300 Maximus, Inc.* 219,863
7,350 Paychex, Inc. 279,300
-----------
1,094,162
-----------
CHEMICALS 0.79%
4,100 Praxair, Inc. 229,600
-----------
Number
of Shares Value
--------- -----
COMMUNICATIONS 0.85%
7,700 WorldCom, Inc.* $ 246,400
-----------
COMPUTER COMPONENTS AND
SOFTWARE 2.48%
5,500 BMC Software, Inc.* 304,562
2,200 Cisco Systems, Inc.* 147,675
2,100 Microsoft Corp.* 265,387
-----------
717,624
-----------
COMPUTER EQUIPMENT 0.04%
200 Comverse Technology, Inc.* 10,400
-----------
COMPUTER SERVICES 4.49%
4,200 BDM International, Inc.* 96,600
9,300 Complete Business Solutions, Inc.* 230,175
3,200 Computer Associates
International, Inc. 178,200
5,950 Computer Horizons Corp.* 203,787
5,400 Keane, Inc.* 280,800
6,700 Sungard Data Systems, Inc.* 311,550
-----------
1,301,112
-----------
DRUGS 7.80%
5,500 Abbott Laboratories 367,125
2,600 Amgen, Inc.* 151,125
5,400 Dura Pharmaceuticals, Inc.* 215,325
3,600 Johnson & Johnson Corp. 231,750
3,400 Jones Medical Instruments, Inc. 161,500
2,600 Merck & Co., Inc. 269,100
2,000 Pfizer, Inc. 239,000
2,200 Schering-Plough Corp. 105,325
8,000 Teva Pharmaceutical Industries
Ltd. ADR 518,000
-----------
2,258,250
-----------
ELECTRONICS 5.63%
9,900 AVX Corp. 267,300
EQUITY GROWTH FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 1997 (UNAUDITED)
Number
of Shares Value
--------- -----
ELECTRONICS 5.63% (CONT'D.)
9,100 Coltec Industries, Inc.* $ 177,450
1,600 DuPont Photomasks, Inc.* 86,400
4,600 General Electric Co. 300,725
4,500 Hewlett-Packard Co. 252,000
2,900 Honeywell, Inc. 220,037
7,300 LSI Logic Corp.* 233,600
3,900 VLSI Technology, Inc.* 92,137
-----------
1,629,649
-----------
ENTERTAINMENT 0.28%
1,000 Walt Disney Co. 80,250
-----------
ENVIRONMENTAL SERVICES 0.51%
5,400 U.S. Filter Corp.* 147,150
-----------
FINANCIAL SERVICES 2.62%
5,500 Finova Group, Inc. 420,750
1,300 Merrill Lynch & Co., Inc. 77,512
1,700 SunAmerica, Inc. 82,875
6,300 United Asset Management Corp. 178,369
-----------
759,506
-----------
FOOD 1.40%
2,600 ConAgra, Inc. 166,725
2,600 CPC International, Inc. 240,012
-----------
406,737
-----------
HEALTH CARE EQUIPMENT AND
SUPPLIES 1.29%
2,500 Mentor Corp. 74,062
9,600 Omnicare, Inc. 301,200
-----------
375,262
-----------
HEALTH CARE SERVICES 1.82%
800 CRA Managed Care, Inc.* 41,750
7,300 HEALTHSOUTH Corp.* 182,044
3,600 OccuSystems, Inc.* 104,400
Number
of Shares Value
--------- -----
HEALTH CARE SERVICES 1.82% (CONT'D.)
3,800 United Healthcare Corp. $ 197,600
-----------
525,794
-----------
HOME FURNISHINGS 2.52%
15,600 Furniture Brands International, Inc.* 302,250
6,000 Interface, Inc. 132,750
8,200 Miller (Herman), Inc. 295,200
-----------
730,200
-----------
HOSPITAL MANAGEMENT AND
SERVICES 0.83%
8,100 Tenet Healthcare Corp.* 239,456
-----------
HOTELS 1.85%
10,200 Host Marriott Corp.* 181,687
4,200 Promus Hotel Corp.* 162,750
4,500 Starwood Lodging Trust 192,094
-----------
536,531
-----------
HOUSEHOLD PRODUCTS 2.09%
1,800 Clorox Co. 237,600
2,700 Gillette Co. 255,825
800 Procter & Gamble Co. 113,000
-----------
606,425
-----------
INFORMATION SYSTEMS 0.54%
5,600 Affiliated Computer Services, Inc.* 156,800
-----------
INSURANCE 4.61%
1,400 American International Group, Inc. 209,125
3,400 MGIC Investment Corp. 162,988
3,600 Oxford Health Plans, Inc.* 258,300
4,900 Reliastar Financial Corp. 358,313
3,100 Travelers Group, Inc. 195,494
3,600 UNUM Corp. 151,200
-----------
1,335,420
-----------
EQUITY GROWTH FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 1997 (UNAUDITED)
Number
of Shares Value
--------- -----
MACHINERY AND EQUIPMENT 1.68%
1,400 Caterpillar, Inc. $ 150,325
7,200 Cooper Cameron Corp.* 336,600
-----------
486,925
-----------
MANUFACTURING 5.97%
6,700 Danaher Corp. 340,444
4,000 Federal Signal Corp. 100,500
5,800 HON INDUSTRIES, Inc. 256,650
4,600 Johnson Controls, Inc. 188,888
8,700 Sybron International Corp.* 346,913
5,100 Tyco International Ltd. 354,769
3,900 Waters Corp.* 139,913
-----------
1,728,077
-----------
MEDIA 1.08%
5,100 Clear Channel
Communications, Inc.* 313,969
-----------
MINING 0.67%
2,600 Potash Corp. of Saskatchewan, Inc. 195,162
-----------
NETWORKING EQUIPMENT 0.30%
1,925 3Com Corp.* 86,625
-----------
OIL AND GAS 9.04%
3,500 Barrett Resources Corp.* 104,781
6,300 BJ Services Co.* 337,838
800 Columbia Gas System, Inc. 52,200
2,400 ENSCO International, Inc.* 126,600
7,600 Global Industries Ltd.* 177,531
2,800 Halliburton Co. 221,900
2,800 Mobil Corp. 195,650
9,000 Nabors Industries, Inc.* 222,750
1,400 Noble Affiliates, Inc. 54,163
10,400 Rowan Cos., Inc.* 293,150
4,300 Santa Fe International Corp.* 146,200
2,000 Schlumberger Ltd. 250,000
Number
of Shares Value
--------- -----
OIL AND GAS 9.04% (CONT'D.)
3,400 Tidewater, Inc. $ 149,600
6,500 Williams Cos., Inc. 284,375
-----------
2,616,738
-----------
PERSONAL SERVICES 1.12%
1,900 HFS, Inc.* 110,200
6,500 Service Corp. International 213,687
-----------
323,887
-----------
RESTAURANTS 0.50%
3,700 Starbucks Corp.* 144,069
-----------
RETAIL 10.02%
2,300 American Stores Company 113,563
17,600 Borders Group, Inc.* 424,600
8,250 Consolidated Stores Corp.* 286,688
8,300 Costco Companies, Inc.* 272,863
21,000 Filene's Basement Corp.* 139,125
14,200 General Nutrition Cos., Inc.* 397,600
2,900 Home Depot, Inc. 199,919
4,000 Meyer (Fred), Inc.* 206,750
7,400 Renters Choice, Inc.* 147,075
6,600 Safeway, Inc.* 304,425
1,000 Sears, Roebuck and Co. 53,750
6,700 Staples, Inc.* 155,775
3,700 Walgreen Co. 198,413
-----------
2,900,546
-----------
SAVINGS AND LOANS 0.50%
2,000 Peoples Heritage Financial
Group, Inc. 75,750
2,679 Washington Federal, Inc. 68,817
-----------
144,567
-----------
SEMICONDUCTORS 0.68%
1,400 Intel Corp. 198,537
-----------
EQUITY GROWTH FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 1997 (UNAUDITED)
Number
of Shares Value
--------- -----
TELECOMMUNICATIONS 4.97%
12,500 ADC Telecommunications, Inc.* $ 417,188
4,400 Lucent Technologies, Inc. 317,075
13,300 Scientific-Atlanta, Inc. 290,937
7,400 Tellabs, Inc.* 413,475
-----------
1,438,675
-----------
WASTE DISPOSAL 2.12%
4,200 United Waste Systems, Inc.* 172,200
11,400 U.S.A. Waste Services, Inc.* 440,325
-----------
612,525
-----------
WHOLESALE 0.68%
3,450 Cardinal Health, Inc. 197,512
-----------
647,704 Total Common Stock
(cost $20,663,222) 27,016,417
-----------
Principal
Amount
---------
SHORT-TERM INVESTMENTS 7.48%
$2,167,113 UMB Bank, n.a., Money Market
Fiduciary 2,167,113
-----------
Total Short-term Investments
(cost $2,167,113) 2,167,113
-----------
Total Investments 100.77%
(cost $22,830,335) 29,183,530
Liabilities less
other assets (0.77%) (224,624)
-----------
NET ASSETS 100.00% $28,958,906
===========
*Non-income producing security
See notes to financial statements.
BALANCED FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
Number
of Shares Value
--------- -----
COMMON STOCKS 63.54%
ADVERTISING 0.90%
1,700 Catalina Marketing Corp.* $ 81,812
4,250 Outdoor Systems, Inc.* 162,562
-----------
244,374
-----------
AEROSPACE 0.83%
1,600 General Dynamics Corp. 120,000
1,200 Northrop Grumman Corp. 105,375
-----------
225,375
-----------
APPAREL 0.77%
1,500 Polo Ralph Lauren Corp.* 41,062
1,500 VF Corp. 127,687
1,350 Wolverine World Wide, Inc. 41,006
-----------
209,755
-----------
AUTOMOTIVE RELATED
INDUSTRIES 1.44%
3,700 Chrysler Corp. 121,406
1,700 Federal-Mogul Corp. 59,500
5,600 Ford Motor Co. 211,400
-----------
392,306
-----------
BANKING 3.27%
3,800 Bankers Trust New York Corp. 330,600
1,100 Chase Manhattan Corp. 106,769
7,600 Mellon Bank Corp. 342,950
2,600 PNC Bank Corp. 108,225
-----------
888,544
-----------
BREWERIES 0.38%
2,500 Anheuser-Busch Cos., Inc. 104,844
-----------
BUSINESS SERVICES 1.40%
1,600 Cincinnati Bell, Inc. 50,400
2,200 Fiserv, Inc.* 98,175
5,300 Maximus, Inc.* 94,738
Number
of Shares Value
--------- -----
BUSINESS SERVICES 1.40% (CONT'D.)
3,655 Paychex, Inc. $138,890
-----------
382,203
-----------
CHEMICALS 1.33%
3,300 Chemed Corp. 123,544
1,300 Dow Chemical Co. 113,262
2,000 du Pont (E.I.) de Nemours and Co. 125,750
-----------
362,556
-----------
COMPUTER EQUIPMENT 1.28%
100 Comverse Technology, Inc.* 5,200
3,800 International Business
Machines Corp. 342,712
-----------
347,912
-----------
COMPUTER SERVICES 2.22%
1,800 BDM International, Inc.* 41,400
4,100 Complete Business Solutions, Inc.* 101,475
2,600 Computer Horizons Corp.* 89,050
2,700 Electronic Data Systems Corp. 110,700
2,500 Keane, Inc.* 130,000
2,800 Sungard Data Systems, Inc.* 130,200
-----------
602,825
-----------
CONSTRUCTION 0.46%
1,600 Vulcan Materials Co. 125,600
-----------
CONSUMER PRODUCTS 0.25%
1,800 American Greetings Corp., Class A 66,825
-----------
CONSUMER SERVICES 0.62%
6,368 Jostens, Inc. 167,956
-----------
DRUGS 2.26%
1,500 American Home Products Corp. 114,750
2,900 Dura Pharmaceuticals, Inc.* 115,637
1,600 Jones Medical Instruments, Inc. 76,000
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 1997 (UNAUDITED)
Number
of Shares Value
--------- -----
DRUGS 2.26% (CONT'D.)
2,900 Pharmacia & Upjohn, Inc. $100,775
3,200 Teva Pharmaceutical Industries
Ltd. ADR 207,200
-----------
614,362
-----------
ELECTRIC UTILITIES 2.50%
4,000 DTE Energy Co. 110,500
4,386 Duke Energy Corp. 210,254
3,000 FPL Group, Inc. 138,187
5,300 PP&L Resources, Inc. 105,669
5,800 Washington Water Power Co. 113,825
-----------
678,435
-----------
ELECTRONICS 2.69%
4,300 AMP, Inc. 221,275
5,300 AVX Corp. 116,100
3,900 Coltec Industries, Inc.* 76,050
700 DuPont Photomasks, Inc.* 37,800
2,000 General Electric Co. 130,750
1,300 Texas Instruments, Inc. 109,281
1,700 VLSI Technology, Inc.* 40,162
-----------
731,418
-----------
FINANCIAL SERVICES 1.50%
3,500 Bear Stearns Cos., Inc. 119,656
2,600 Finova Group, Inc. 198,900
3,100 United Asset Management Corp. 87,769
-----------
406,325
-----------
FOOD 1.37%
6,800 Supervalu, Inc. 234,600
3,750 Sysco Corp. 136,875
-----------
371,475
-----------
HEALTH CARE EQUIPMENT
AND SUPPLIES 0.70%
1,100 Mentor Corp. 32,587
Number
of Shares Value
--------- -----
HEALTH CARE EQUIPMENT
AND SUPPLIES 0.70% (CONT'D.)
5,000 Omnicare, Inc. $156,875
-----------
189,462
-----------
HEALTH CARE SERVICES 0.23%
300 CRA Managed Care, Inc.* 15,656
1,600 OccuSystems, Inc.* 46,400
-----------
62,056
-----------
HOLDING COMPANIES 1.00%
1,000 Fortune Brands, Inc. 37,312
7,100 RJR Nabisco Holdings Corp. 234,300
-----------
271,612
-----------
HOME FURNISHINGS 1.00%
6,900 Furniture Brands International, Inc.* 133,687
3,800 Miller (Herman), Inc. 136,800
-----------
270,487
-----------
HOSPITAL MANAGEMENT
AND SERVICES 0.35%
2,400 Columbia/HCA Healthcare Corp. 94,350
-----------
HOTELS 0.95%
5,900 Host Marriott Corp.* 105,094
1,800 Promus Hotel Corp.* 69,750
1,950 Starwood Lodging Trust 83,241
-----------
258,085
-----------
HOUSEHOLD APPLIANCES 0.84%
8,700 Maytag Corp. 227,287
-----------
HOUSEHOLD PRODUCTS 0.26%
4,600 Dial Corp. 71,875
-----------
INFORMATION SYSTEMS 0.30%
2,900 Affiliated Computer Services, Inc.* 81,200
-----------
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 1997 (UNAUDITED)
Number
of Shares Value
--------- -----
INSURANCE 3.42%
5,200 American General Corp. $248,300
700 CIGNA Corp. 124,250
600 General Re Corp. 109,200
1,900 Lincoln National Corp. 122,312
1,400 MBIA, Inc. 157,937
2,300 Reliastar Financial Corp. 168,187
-----------
930,186
-----------
LEISURE 0.44%
3,800 Brunswick Corp. 118,750
-----------
MACHINERY AND EQUIPMENT 0.65%
3,800 Cooper Cameron Corp.* 177,650
-----------
MANUFACTURING 1.92%
3,300 Danaher Corp. 167,681
2,000 Federal Signal Corp. 50,250
2,100 HON INDUSTRIES, Inc. 92,925
3,800 Sybron International Corp.* 151,525
1,700 Waters Corp.* 60,988
-----------
523,369
-----------
MEDIA 0.54%
2,400 Clear Channel
Communications, Inc.* 147,750
-----------
METAL PRODUCTS 0.39%
1,400 Aluminum Company of America 105,525
-----------
MINING 0.73%
2,700 Newmont Mining Corp. 105,300
1,100 Phelps Dodge Corp. 93,706
-----------
199,006
-----------
NATURAL GAS UTILITIES 2.23%
3,000 El Paso Natural Gas Co. 165,000
3,300 Equitable Resources, Inc. 93,638
Number
of Shares Value
--------- -----
NATURAL GAS UTILITIES 2.23% (CONT'D.)
3,300 NICOR, Inc. $ 118,388
4,700 Pacific Gas & Electric Co. 113,975
3,100 Peoples Energy Corp. 116,056
-----------
607,057
-----------
NETWORKING EQUIPMENT 0.14%
875 3Com Corp.* 39,375
-----------
OFFICE EQUIPMENT 0.58%
1,300 Harris Corp. 109,200
600 Xerox Corp. 47,325
-----------
156,525
-----------
OIL AND GAS 7.64%
1,200 Amoco Corp. 104,325
1,600 Atlantic Richfield Co. 112,800
1,600 Barrett Resources Corp.* 47,900
2,700 BJ Services Co.* 144,788
1,500 Chevron Corp. 110,906
1,200 ENSCO International, Inc.* 63,300
3,700 Global Industries Ltd.* 86,430
3,400 Louisiana Land & Exploration Co. 194,225
3,900 Nabors Industries, Inc.* 96,525
4,800 Occidental Petroleum Corp. 120,300
2,700 Repsol SA-ADR 114,581
5,000 Rowan Cos., Inc.* 140,938
1,900 Santa Fe International Corp.* 64,600
1,500 Texaco, Inc. 163,125
2,000 Tidewater, Inc. 88,000
2,500 Transocean Offshore, Inc. 181,563
3,400 Ultramar Diamond Shamrock Corp. 110,925
3,000 Williams Cos., Inc. 131,250
-----------
2,076,481
-----------
PERSONAL SERVICES 0.24%
2,000 Service Corp. International 65,750
-----------
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 1997 (UNAUDITED)
Number
of Shares Value
--------- -----
PRINTING AND PUBLISHING 0.96%
4,000 Deluxe Corp. $136,500
1,500 Dun & Bradstreet Corp. 39,375
3,700 Harland (John H.) Co. 84,406
-----------
260,281
-----------
RAILROADS 0.41%
3,200 Illinois Central Corp. Series A 111,800
-----------
REAL ESTATE 0.85%
4,500 Excel Realty Trust, Inc. 118,688
2,800 Meditrust Corp. 111,475
-----------
230,163
-----------
RESTAURANTS 0.23%
1,600 Starbucks Corp.* 62,300
-----------
RETAIL 2.95%
4,300 Borders Group, Inc.* 103,738
3,875 Consolidated Stores Corp.* 134,656
9,700 Filene's Basement Corp.* 64,263
6,200 General Nutrition Cos., Inc.* 173,600
2,200 Penney (J.C.) Co., Inc. 114,813
3,300 Renters Choice, Inc.* 65,588
4,300 Wal-Mart Stores, Inc. 145,394
-----------
802,052
-----------
SAVINGS AND LOANS 0.13%
900 Peoples Heritage Financial
Group, Inc. 34,088
-----------
SEMICONDUCTORS 0.73%
1,400 Intel Corp. 198,538
-----------
STEEL/IRON 0.72%
1,200 Nucor Corp. 68,700
3,600 USX-US Steel Group, Inc. 126,225
-----------
194,925
-----------
Number
of Shares Value
--------- -----
TELECOMMUNICATIONS 4.41%
4,100 ADC Telecommunications, Inc.* $ 136,838
3,100 GTE Corp. 136,013
2,200 NYNEX Corp. 126,775
2,000 SBC Communications, Inc. 123,750
6,400 Scientific-Atlanta, Inc. 140,000
5,800 Southern New England
Telecommunications Corp. 225,475
3,400 Tellabs, Inc.* 189,975
3,200 US West Communications Group 120,600
-----------
1,199,426
-----------
TEXTILES 0.45%
2,300 Springs Industries, Inc., Class A 121,325
-----------
TOBACCO PRODUCTS 0.48%
1,000 Gallaher Group PLC* 18,437
2,500 Philip Morris Cos., Inc. 110,937
-----------
129,374
-----------
TRANSPORTATION 0.84%
4,500 Alexander & Baldwin, Inc. 117,563
1,900 GATX Corp. 109,725
-----------
227,288
-----------
WASTE DISPOSAL 0.36%
2,500 U.S.A. Waste Services, Inc.* 96,563
-----------
Total Common Stocks
(cost $13,460,788) $17,265,051
-----------
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 1997 (UNAUDITED)
Principal
Amount Value
--------- -----
FIXED INCOME BONDS 32.42%
ASSET-BACKED SECURITIES 3.69%
$ 75,000 Amresco Residential Securities
Mortgage Loan Trust,
8.075%, 4/25/26 $ 77,963
150,000 Amresco Residential Securities
Mortgage Loan Trust,
7.615%, 3/25/27 151,073
100,000 Amresco Residential Securities
Mortgage Loan Trust,
7.05%, 4/25/27 99,623
120,000 Citibank Credit Card Master Trust,
6.55%, 2/16/04 119,358
125,000 Ford Credit Auto Trust,
6.50%, 11/15/99 125,876
75,000 Green Tree Financial Corp.,
6.35%, 12/15/26 74,498
125,000 Olympic Auto Trust,
6.625%, 12/15/02 125,479
125,000 Premier Auto Trust,
6.50%, 3/6/00 125,446
50,000 UCFC Home Equity Loan Trust,
7.825%, 12/15/27 51,085
52,969 Union Federal Savings Bank Trust,
4.875%, 2/15/00 52,588
-----------
1,002,989
-----------
CORPORATE BONDS 20.19%
225,000 Associates Corp. of North America,
7.75%, 2/15/05 238,889
225,000 BarclaysAmerican Corp.,
7.875%, 8/15/98 229,241
150,000 Bellsouth Capital Funding,
6.04%, 11/15/26 147,621
200,000 Citicorp, 8.11%, 11/4/04 213,128
225,000 Coca-Cola Enterprises, Inc.,
7.00%, 10/1/26 227,403
Principal
Amount Value
--------- -----
CORPORATE BONDS 20.19% (CONT'D.)
$130,000 Commercial Credit Co.,
7.875%, 2/1/25 $139,030
120,000 Compania Telecom Chile,
7.625%, 7/15/06 123,259
100,000 Corporation Andina de Fomento,
7.10%, 2/1/03 100,032
100,000 El Paso Natural Gas Co.,
6.75%, 11/15/03 98,772
100,000 General Motors Acceptance Corp.,
6.75%, 2/7/02 99,952
150,000 General Motors Acceptance Corp.,
8.875%, 6/1/10 173,217
100,000 Grace (W.R.) & Co.,
8.00%, 8/15/04 104,834
225,000 Grand Metropolitan Investment PLC,
7.45%, 4/15/35 233,512
250,000 Heller Financial Corp.,
9.375%, 3/15/98 255,935
260,000 Household Finance Corp.,
7.125%, 4/30/99 263,388
220,000 Lehman Brothers, Inc.,
8.80%, 3/1/15 244,704
120,000 Lockheed Martin Corp.,
6.85%, 5/15/01 120,308
100,000 Nabisco, Inc.,
7.55%, 6/15/15 98,072
150,000 NationsBank Corp.,
8.57%, 11/15/24 172,009
175,000 New Jersey Bell Telephone Co.,
7.85%, 11/15/29 192,965
60,000 Norfolk Southern Corp.,
6.95%, 5/1/02 60,430
250,000 Pacific Gas & Electric Co.,
7.67%, 12/15/98 255,250
115,000 Rodamco NV,
7.30%, 5/15/05 117,247
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 1997 (UNAUDITED)
Principal
Amount Value
--------- -----
CORPORATE BONDS 20.19% (CONT'D.)
$150,000 Rollins Truck Leasing Corp.,
7.00%, 3/15/01 $ 150,800
100,000 Salomon, Inc.,
7.30%, 5/15/02 100,880
175,000 Southern California Edison Co.,
5.60%, 12/15/98 173,653
130,000 Tenneco, Inc.,
8.075%, 10/1/02 135,966
130,000 Union Pacific Resources,
7.00%, 10/15/06 129,455
120,000 U.S. West Capital Funding, Inc.,
6.85%, 1/15/02 120,272
250,000 Virginia Electric & Power Co.,
9.30%, 6/9/99 263,060
250,000 Wal-Mart Stores,
6.125%, 10/1/99 249,068
250,000 WMX Technologies, Inc.,
7.10%, 8/1/26 253,415
-----------
5,485,767
-----------
U.S. GOVERNMENT AGENCIES 5.62%
100,000 FHLMC, Series 1563, Class E,
4.75%, 3/15/06 96,741
250,000 FHLMC, Series 1576, Class PH,
6.00%, 1/15/08 239,818
269,451 FHLMC, Pool 555316,
9.00%, 6/1/19 284,861
75,000 FHLMC, Series 1577, Class PH,
6.30%, 3/15/23 72,586
79,038 FNMA, Pool 50361,
9.00%, 11/1/05 82,323
50,000 FNMA, Series 1993-191, Class PH,
6.00%, 5/25/08 48,038
175,000 FNMA, Series 1996-21, Class PG,
6.00%, 2/25/10 168,187
250,000 FNMA, Series 1994-59, Class PE,
5.00%, 3/25/22 238,590
Principal
Amount Value
--------- -----
U.S. GOVERNMENT AGENCIES 5.62% (CONT'D.)
$ 5,968 GNMA, Pool 031096,
9.50%, 6/15/09 $ 6,440
144,118 Guaranteed Export Certificates,
6.28%, 6/15/04 142,218
150,000 Tennessee Valley Authority,
6.235%, 7/15/45 148,761
-----------
1,528,563
-----------
U.S. TREASURY OBLIGATIONS 2.92%
185,000 U.S. Treasury Bond,
8.875%, 8/15/17 225,324
25,000 U.S. Treasury Bond,
8.125%, 5/15/21 28,620
250,000 U.S. Treasury Note,
7.125%, 2/29/00 255,490
100,000 U.S. Treasury Note,
7.00%, 7/15/06 102,891
965,000 U.S. Treasury Strips, 11/15/21 180,407
-----------
792,732
-----------
Total Fixed Income Bonds
(cost $8,713,380) 8,810,051
-----------
REPURCHASE AGREEMENTS 1.84%
500,000 UMB Bank, n.a., 5.30%, dated
6/30/97, repurchase price $500,074,
maturing 7/1/97 (collateralized by
U.S. Treasury Notes, 8.25%, 7/15/98) 500,000
-----------
Total Repurchase Agreements
(cost $500,000) 500,000
-----------
BALANCED FUND
SCHEDULE OF INVESTMENTS (CONT'D.)
JUNE 30, 1997 (UNAUDITED)
Principal
Amount Value
--------- -----
SHORT-TERM INVESTMENTS 2.09%
$569,025 UMB Bank, n.a., Money Market
Fiduciary $ 569,025
-----------
Total Short-term Investments
(cost $569,025) 569,025
-----------
Total Investments 99.89%
(cost $23,243,193) 27,144,127
Other assets
less liabilities 0.11% 29,759
-----------
NET ASSETS 100.00% $27,173,886
===========
*Non-income producing security
See notes to financial statements.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997
(UNAUDITED)
1. ORGANIZATION
The Aquinas Funds, Inc. was incorporated on October 20, 1993 as a Maryland
Corporation and is registered as a diversified open-end management investment
company under the Investment Company Act of 1940. The Fixed Income, Equity
Income, Equity Growth and Balanced Funds (the "Funds") are separate,
diversified portfolios of The Aquinas Funds, Inc. The Funds are managed by
Aquinas Investment Advisers, Inc. (the "Adviser") and commenced operations on
January 3, 1994.
Costs incurred with the organization, initial registration and public offering
of shares aggregating $12,959 for each of the Fixed Income, Equity Income,
Equity Growth and Balanced Funds have been paid by the Funds. These costs were
deferred and are being amortized over a period of not more than five years from
the Funds' commencement of operations. The proceeds of any redemption of the
initial shares by the original shareholder or any transferee will be reduced by
a pro rata portion of any then unamortized deferred organizational expenses in
the same proportion as the number of initial shares being redeemed bears to the
number of initial shares outstanding at the time of such redemption.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles
("GAAP"). The presentation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates and assumptions.
a) Investment Valuation - Securities traded over-the-counter or on a national
securities exchange are valued on the basis of market value in their principal
and most representative market. Securities where the principal and most
representative market is a national securities exchange are valued at the latest
reported sale price on such exchange. Exchange-traded securities for which there
were no transactions are valued at the latest reported bid price. Securities
traded on only over-the-counter markets are valued at the latest bid prices.
Debt securities (other than short-term obligations) are valued at prices
furnished by a pricing service. Short-term obligations (maturing within 60 days)
are valued on an amortized cost basis, which approximates value. Securities for
which quotations are not readily available and other assets are valued at fair
value as determined in good faith by the Adviser under the supervision of the
Board of Directors.
b) Delayed Delivery Transactions - The Funds may purchase or sell securities on
a when-issued or forward commitment basis. Payment and delivery may take place a
month or more after the date of the transaction. The price of the underlying
securities and the date when the securities will be delivered and paid for are
fixed at the time the transaction is negotiated. Losses may arise due to changes
in the market value of the underlying securities or if the counterparty does not
perform under the contract.
c) Federal Income Taxes - No provision for federal income taxes has been made
since the Funds have complied to date with the provisions of the Internal
Revenue Code available to regulated investment companies and intend to continue
to so comply in future years. As of December 31, 1996, the Fixed Income Fund had
a federal income tax capital loss carryforward of $373,400 expiring in 2002. To
the extent the Fixed Income Fund realizes future net capital gains, taxable
distributions to its shareholders will be offset by any unused capital loss
carryforward.
d) Distributions to Shareholders - All of the Funds except the Fixed Income
Fund pay dividends of net investment income quarterly. The Fixed Income Fund
pays dividends of net investment income monthly. Distributions of net realized
gains, if any, will be declared at least annually. Distributions to shareholders
are recorded on the ex-dividend date.
The character of distributions made during the year from net investment income
or net realized gains may differ from the characterization for federal income
tax purposes due to differences in the recognition of income, expense or gain
items for financial statement and tax purposes. Where appropriate,
reclassifications between net asset accounts are made for such differences that
are permanent in nature. Accordingly, at June 30, 1997, reclassifications were
recorded to increase (decrease) undistributed net investment income by $(6,093),
$2,321, $76,798, and $(887); increase (decrease) accumulated net realized gain
on investments by $8,593, $79, $(76,100), and $1,604; and decrease paid-in
capital in excess of par by $2,500, $2,400, $698 and $717 for the Fixed Income,
Equity Income, Equity Growth and Balanced Funds, respectively.
e) Expenses - Each Fund is charged for those expenses that are directly
attributable to it, such as investment advisory and custody fees. Expenses that
are not directly attributable to a Fund are typically allocated among the Funds
in proportion to their respective net assets.
f) Other - Investment transactions are accounted for on the trade date plus
one. The Funds determine the gain or loss realized from investment transactions
by comparing the original cost of the security lot sold with the net sale
proceeds. Dividend income is recognized on the ex-dividend date and interest
income is recognized on an accrual basis. Premiums and discounts on securities
purchased are amortized using the level yield maturity method.
3. INVESTMENT ADVISORY AND OTHER AGREEMENTS
Each of the Funds has entered into an agreement with the Adviser, with whom
certain officers and directors of the Funds are affiliated, to furnish
investment advisory services to the Funds. Under the terms of this agreement,
the Funds will pay the Adviser a fee, computed daily and payable monthly, at the
annual rate of the following percentages of average daily net assets: 0.60% for
the Fixed Income Fund; and 1.00% for the Equity Income, Equity Growth and
Balanced Funds.
The Adviser voluntarily agreed to waive its management fee to the extent that
total annual operating expenses (exclusive of interest, taxes, brokerage
commissions and other costs incurred in connection with the purchase or sale of
portfolio securities, and extraordinary items) exceed 1.00% of the average daily
net assets of the Fixed Income Fund and 1.50% of the average daily net assets of
the Equity Income, Equity Growth and Balanced Funds, respectively, computed on a
daily basis. For the six months ended June 30, 1997, fees of $8,773 and $1,548
were waived by the Adviser in the Fixed Income and Equity Growth Funds,
respectively.
Sunstone Financial Group, Inc. (the "Administrator") may periodically
volunteer to waive all or a portion of its administrative fee with respect to
one or more of the Funds. These waivers may be terminated at any time at the
Administrator's discretion. The Administrator may not seek reimbursement of such
voluntarily reduced fees at a later date. The reduction of such fee will cause
the yield of that Fund to be higher than it would be in the absence of such
reduction. For the six months ended June 30, 1997, administrative fees of $7,117
were waived in the Balanced Fund.
4. CAPITAL SHARE TRANSACTIONS
Transactions in shares of the Funds for the six months ended June 30, 1997, were
as follows:
Fixed Income Equity Income Equity Growth Balanced
Fund Fund Fund Fund
---- ---- ---- ----
Shares sold 458,083 292,187 293,857 85,862
Shares issued to
holders in
reinvestment of
distributions 84,573 18,345 -- 14,730
Shares redeemed (319,775) (288,013) (73,526) (464,403)
--------- --------- --------- ---------
Net Increase
(Decrease) 222,881 22,519 220,331 (363,811)
========= ========= ========= =========
Transactions in shares of the Funds for the year ended December 31, 1996, were
as follows:
Fixed Income Equity Income Equity Growth Balanced
Fund Fund Fund Fund
---- ---- ---- ----
Shares sold 483,744 641,027 353,769 193,954
Shares issued to
holders in
reinvestment of
distributions 185,223 275,606 162,226 240,268
Shares redeemed (412,722) (387,771) (148,566) (288,492)
--------- --------- --------- ---------
Net Increase 256,245 528,862 367,429 145,730
========= ========= ========= =========
5. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding short-term
investments, for the Funds for the six months ended June 30, 1997, were as
follows:
Fixed Income Equity Income Equity Growth Balanced
Fund Fund Fund Fund
---- ---- ---- ----
Purchases
U.S. Government $ 9,063,163 -- -- $ 2,954,266
Other 10,668,670 $16,233,269 $14,079,266 10,455,039
Sales
U.S. Government 9,740,404 -- -- 4,457,831
Other 6,826,366 14,907,936 12,110,381 13,252,496
At June 30, 1997, gross unrealized appreciation and depreciation on investments,
based on cost for federal income tax purposes of $38,679,894, $47,234,829,
$22,848,464 and $23,262,900 were as follows:
Fixed Income Equity Income Equity Growth Balanced
Fund Fund Fund Fund
---- ---- ---- ----
Appreciation $502,302 $14,762,751 $6,536,853 $4,026,484
(Depreciation) (196,938) (281,177) (201,787) (145,257)
---------- ---------- ---------- ----------
Net Appreciation
on Investments $305,364 $14,481,574 $6,335,066 $3,881,227
========== ========== ========== ==========
(LOGO)
THE AQUINAS FUNDS, INC.
P.O. Box 419533
Kansas City, MO 64141-6533
Telephone: 1-800-423-6369
This report is submitted for the general information of shareholders of The
Aquinas Funds. It is not authorized for distribution to prospective investors
unless accompanied or preceded by an effective Prospectus for the Funds. The
Prospectus includes more complete information about management fees and
expenses. Please read the Prospectus carefully.
