<PAGE>
THESE FUNDS ARE NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT, THE FDIC,
THE FEDERAL RESERVE BOARD OR ANY OTHER GOVERNMENTAL AGENCY OR INSURER.
INVESTMENT ADVISER
GE Investment
Management Incorporated
3003 Summer Street
P.O. Box 7900
Stamford, Connecticut 06905
DISTRIBUTOR & ADMINISTRATOR
ALPS Mutual Funds Services, Inc.
370 Seventeenth Street
Suite 3100
Denver, Colorado 80202-5627
LEGAL COUNSEL
Baker & McKenzie
805 Third Avenue
New York, New York 10022
INDEPENDENT AUDITORS
Deloitte & Touche LLP
555 Seventeenth Street
Suite 3600
Denver, Colorado 80202
CUSTODIAN
State Street Bank and Trust
Company of Connecticut N.A.
750 Main Street
Suite 1114
Hartford, Connecticut 06103
SUB-CUSTODIAN & TRANSFER AGENT
State Street Bank & Trust Company
P.O. Box 1978
Boston, Massachusetts 02105
FOR MORE INFORMATION, PLEASE CALL
1-800-298-3442
GE INVESTMENTS
- --------------------------------------------------------------------------------
THE INVESTMENT MANAGEMENT ARM OF GE
INVESTMENT ADVISOR
ALPS MUTUAL FUNDS SERVICES
- --------------------------------------------------------------------------------
SPONSOR AND DISTRIBUTOR
[DESIGN]
FINANCIAL INVESTORS TRUST
- --------------------------------------------------------------------------------
Semi-Annual Report
- --------------------------------------------------------------------------------
OCTOBER 31, 1997
GE INVESTMENTS
- --------------------------------------------------------------------------------
THE INVESTMENT MANAGEMENT ARM OF GE
INVESTMENT ADVISOR
<PAGE>
LETTER FROM THE CHAIRMAN
- -------------------------------------------------------------------------------
Dear Shareholders:
I am pleased to report to you that the net assets in Financial Investors Trust
have grown since the Trust's fiscal year ended April 30, 1997. As of October 31,
1997, the net assets of Financial Investors Trust were at $286,491,965, up 12%.
Our shareholders continually stress the importance of these Financial Investors
Trust benefits:
1. Financial Investors Trust's first priority is safety. As you are
aware, both the U.S. Government Money Market Fund and the U.S. Treasury Money
Market Fund are AAA rated by both Fitch and Standard & Poor's. As a consequence,
the weighted average maturities are limited to 60 days. Many competitor funds,
in a search for higher yields, include commercial paper and certain forms of
derivative securities among their permissible investments. We have chosen not to
permit these types of investments. We only select direct U.S. Treasury, U.S.
Government and Agency securities, and repurchase agreements collateralized to
102% by these obligations for our Funds.
2. GE Investment Management Incorporated, one of the nation's largest and
most highly respected financial advisers, serves as investment adviser to both
Funds. They manage approximately $60 billion in assets, including $1.5 billion
in money market assets. Their experience, knowledge, reputation and financial
strength are a comfort to us and I'm sure to you, the shareholders of Financial
Investors Trust.
3. The people at Financial Investors Trust know the value of personalized
service for each of our shareholders and strive to accommodate each
shareholder's unique needs. Our representatives are available from 9:00 a.m. to
8:00 p.m. ET to help you with any questions you may have about your accounts. In
addition, we send a regularly scheduled fax to all interested parties providing
Fund information on yields and maturities. If you would prefer to have personal
access to your accounts, we can accommodate you with our remote access software
package that is easy to use and allows you to perform inquiries and transaction
processing right at your desk. And, since we know that all cash management
decisions are not made by lunchtime, we have established late cutoff times for
both purchases (5:00 p.m. ET) and redemptions (1:00 p.m. ET).
We appreciate your support of the Funds and as always are pleased to hear from
you. You can be assured that we will be responsive and courteous to any requests
or suggestions.
Sincerely,
/s/ W. Robert Alexander
W. Robert Alexander
Chairman
Financial Investors Trust
THIS REPORT, INCLUDING THE FINANCIAL STATEMENTS HEREIN, IS TRANSMITTED TO THE
SHAREHOLDERS OF THE FUNDS FOR THEIR INFORMATION. THIS IS NOT A PROSPECTUS,
CIRCULAR OR REPRESENTATION INTENDED FOR USE IN THE PURCHASE OF SHARES OF THE
FUNDS OR ANY SECURITIES MENTIONED IN THIS REPORT.
1
- --------------------------------------------------------------------------------
<PAGE>
ADVISER FUND UPDATE
- --------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
The investment objective of the Fund is to provide investors with as high a
level of current income as is consistent with the preservation of capital and
liquidity by investing in U.S. Treasury bills, notes and other direct
obligations of the U.S. Treasury and repurchase agreements collateralized to
102% by these obligations. Please note that the government guarantee supporting
the Fund's investments applies only to the payment of principal and interest of
the Fund's underlying portfolio securities. It does not guarantee the credit of
a repurchase agreement counterparty, the value of the Fund's shares nor does it
guarantee against adverse price movements brought about by an increase in
prevailing rates of market interest. The Fund is required to maintain a
dollar-weighted average portfolio maturity of
U.S. TREASURY MONEY MARKET FUND SECTOR PROFILE
as of October 31, 1997
U.S. Treasury Notes & Bills 44%
Repurchase Agreements 56%
[PIE GRAPH]
U.S. TREASURY MONEY MARKET FUND
- --------------------------------------------------------------------------------
7-Day SEC Yield: 5.22%
THIS YEILD IS AS OF 10/31/97 AND REFLECTS REINVESTMENT OF ALL DIVIDEND
DISTRIBUTIONS, ALL FEE WAIVERS IN EFFECT, AND ANY EXPENSE REIMBURSEMENTS.
WITHOUT THE FEE WAIVERS AND EXPENSE REIMBURSEMENTS IN EFFECT, THE YIELD WOULD
HAVE BEEN LOWER. FUND INCEPTION DATE IS 5/25/94.
COMPARISON OF CHANGE IN VALUE OF $100,000 INVESTMENT IN THE FINANCIAL INVESTORS
TRUST U.S. TREASURY MONEY MARKET FUND AND THE IBC/DONOGHUE TREASURY & REPURCHASE
AGREEMENT AVERAGE
[GRAPH]
[PLOT POINTS TO COME HERE]
Please Note: Performance is for the period ended 10/31/97. Past performance is
not predictive of future results. The Money Fund Report, IBC/Donoghue Money
Fund Average-TM- (U.S. Treasuries & Repurchase Agreements) was composed of 74
funds as of October 31, 1997.
2
- --------------------------------------------------------------------------------
<PAGE>
ADVISER FUND UPDATE
- --------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND (CONTINUED)
90 days or less. However, the Fund seeks a dollar-weighted average portfolio
maturity of 60 days or less in order to preserve its AAA rating. The Fund also
seeks to maintain a stable net asset value of $1.00 per share although there can
be no assurance of this.
As of October 31, 1997, the Fund had a 7-day effective yield of 5.36% and a
7-day SEC yield of 5.22%, compared with 5.31% and 5.17%, respectively, on April
30, 1997. At the end of the six month period, the average portfolio maturity of
the Fund was 56 days. The 90-day Treasury Bill yielded 5.17% as of October 31,
1997. The IBC/Donoghue Money Fund average one month yield for the U.S.
Treasuries & Repurchase Agreements index was 4.83% on October 31, 1997. The
Fund's portfolio composition as of October 31, 1997, was 56% repurchase
agreements and 44% U.S. Treasury Notes and Bills.
Economic data since the first quarter has shown moderate growth and low
inflation, resulting in no Federal Reserve intervention. It is still expected
that inflation will rise as consumer and business spending continue,
construction rebounds and the Consumer Price Index increases to keep pace with
the Producer Price Index. However, with the foreign markets exhibiting high
volatility, the Treasury yield curve has flattened, led by the 30-year Treasury
dropping by 80 basis points from 6.95% to 6.15% during the six month period.
Considering this mixture of inconclusive economic news, Fed rates should remain
unchanged through the rest of 1997. During the six month period, the Fund
shortened duration and maintained yield by reinvesting in higher overnight
rates. With recent market volatility, the Fund extended duration and gained
yield. Our strategy now is to target a maturity range of 35-50 days, monitoring
economic and world news, and buy on strength to maintain duration while
sustaining yield.
THE VIEW EXPRESSED IN THIS ADVISER UPDATE REFLECT THE ADVISER'S VIEW ONLY
THROUGH OCTOBER 31, 1997. THE ADVISER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME
BASED ON MARKET AND OTHER CONDITIONS.
3
- --------------------------------------------------------------------------------
<PAGE>
ADVISER FUND UPDATE
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND
The Fund seeks to provide investors with as high a level of current income
as is consistent with the preservation of capital and liquidity by investing
exclusively in obligations issued or guaranteed as to principal or interest by
the U.S. Government or by any of its agencies or instrumentalities and
repurchase agreements collateralized to 102% by these obligations. Please note
that the government guarantee supports only the payment of principal and
interest of the Fund's underlying portfolio securities. It does not guarantee
the value of the Fund's shares nor does it guarantee against adverse
price movements brought about by an increase in prevailing rates of market
interest. The Fund is required to maintain a dollar-weighted average portfolio
maturity of 90 days or less. However, the
U.S. GOVERNMENT MONEY MARKET FUND SECTOR PROFILE
as of October 31, 1997
U.S. Government Agencies 41%
Repurchase Agreements 52%
U.S. Treasury Notes & Bills 7%
[PIE GRAPH]
U.S. GOVERNMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
7-Day SEC Yield: 5.54%
THIS YIELD IS AS OF 10/31/97 AND REFLECTS REINVESTMENT OF ALL DIVIDEND
DISTRIBUTIONS, ALL FEE WAIVERS IN EFFECT AND ANY EXPENSE REIMBURSEMENTS.
WITHOUT THE FEE WAIVERS AND EXPENSE REIMBURSEMENTS IN EFFECT, THE YIELD WOULD
HAVE BEEN LOWER. FUND INCEPTION DATE IS 7/10/96.
COMPARISON OF CHANGE IN VALUE OF $1,000,000 INVESTMENT IN THE FINANCIAL
INVESTORS TRUST U.S. GOVERNMENT MONEY MARKET FUND AND THE IBC/DONOGHUE
GOVERNMENT ONLY-INSTITUTIONAL ONLY FUND AVERAGE
[GRAPH]
[PLOT POINTS TO COME HERE]
Please Note: Performance is for the period ended 10/31/97. Past performance is
not predictive of future results. The Money Fund Report, IBC/Donoghue Money
Fund Average-TM- (Government Only-Institutional Only) was composed of 194 funds
as of October 31, 1997.
4
- --------------------------------------------------------------------------------
<PAGE>
ADVISER FUND UPDATE
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND (CONTINUED)
Fund seeks a dollar-weighted average portfolio maturity of 60 days or less in
order to preserve its AAA rating. The Fund also seeks to maintain a stable net
asset value of $1.00 per share although there can be no assurance of this.
As of October 31, 1997, the Fund had a 7-day effective yield of 5.69% and a
7-day SEC yield of 5.54%, compared with 5.44% and 5.29%, respectively, on April
30, 1997. At the end of the six month period, the average portfolio maturity of
the Fund was 24 days. The 90-day Treasury Bill yielded 5.17% on October 31,
1997. The IBC/Donoghue Money Fund average one month yield for the Government
Only-Institutional Only Funds was 5.11% on October 31, 1997. The Fund's
portfolio composition as of October 31, 1997, was 52% repurchase agreements, 41%
U.S. Government Agencies and 7% U.S. Treasury Notes and Bills.
After the Federal Reserve raised rates in the first quarter, the economic
outlook painted a picture of higher rates for the remainder of 1997. The market
however, has exhibited an interesting dilemma for the past six months: above
trend growth (low unemployment, higher commodity prices, moderate producer
prices) versus low inflation (low to moderate housing starts, low consumer
prices). The result has been no change in monetary policy by the Federal
Reserve. With Asian and even domestic equity markets showing signs of
volatility, the forecast is for no further rate increases by the Federal Reserve
until after the new year. Within the six month period, the Fund maintained the
target duration and was able to improve upon its yield by buying when
opportunities presented themselves. Our strategy is to maintain the average
portfolio maturity between 24 and 35 days, staying short of IBC's current
average of 44 days. This will allow us to take advantage of year-end price
pressures and to capitalize if rates do in fact rise, allowing the Fund to raise
yield and maintain duration.
THE VIEW EXPRESSED IN THIS ADVISER UPDATE REFLECT THE ADVISER'S VIEW ONLY
THROUGH OCTOBER 31, 1997. THE ADVISER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME
BASED ON MARKET AND OTHER CONDITIONS.
5
- --------------------------------------------------------------------------------
<PAGE>
U.S. TREASURY MONEY MARKET FUND
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1997 (UNAUDITED)
ASSETS
Investments, at amortized cost (which approximates market value)
- - see accompanying statement $130,250,583
Interest receivable 1,177,727
Organizational costs, net of accumulated amortization 106,705
Other 1,565
- -------------------------------------------------------------------------------
Total Assets 131,536,580
- -------------------------------------------------------------------------------
LIABILITIES
Dividends payable 606,404
Advisory fees payable 5,838
Accrued expenses 41,277
- -------------------------------------------------------------------------------
Total Liabilities 653,519
- -------------------------------------------------------------------------------
NET ASSETS $130,883,061
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $130,910,698
Accumulated net realized loss (27,637)
- -------------------------------------------------------------------------------
NET ASSETS $130,883,061
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Shares of beneficial interest outstanding 130,910,698
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Net asset value and redemption value per share $ 1.00
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
See notes to financial statements.
6
- --------------------------------------------------------------------------------
<PAGE>
U.S. TREASURY MONEY MARKET FUND
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS
OCTOBER 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
Face Value Market Value*
- ---------- -------------
<S> <C>
U.S. TREASURY OBLIGATIONS 43.82%
- --------------------------------------------------------------------------------------------------------------
U.S. Treasury Notes:
$ 6,000,000 7.38%, 11/15/97 $ 6,003,335
15,000,000 6.00%, 11/30/97 15,004,266
7,500,000 7.25%, 2/15/98 7,537,671
13,000,000 7.88%, 4/15/98 13,140,285
8,000,000 5.13%, 5/15/98 8,028,020
7,500,000 8.25%, 7/15/98 7,639,814
-------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $57,353,391) 57,353,391
-------------
<CAPTION>
REPURCHASE AGREEMENTS
COLLATERALIZED BY U.S. GOVERNMENT
OBLIGATIONS 55.70% Collateral Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
6,300,000 Repurchase agreement with Chase Securities Inc.,
5.63%, dated 10/31/97 and maturing 11/3/97,
collateralized by U.S. Treasury Notes, 5.88% due
2/15/00, 6.88% due 3/31/00, 5.50% due 4/15/00,
6.75%, due 4/30/00, 6.38% due 5/15/00 6,302,956 $6,428,169
6,300,000 Repurchase agreement with Deutsche Bank Corp.,
5.69%, dated 10/31/97 and maturing 11/3/97,
collateralized by U.S. Treasury Note, 5.13% due
12/31/98 6,302,987 6,426,259
6,300,000 Repurchase agreement with Harris Nesbitt,
5.65%, dated 10/31/97 and maturing 11/3/97,
collateralized by U.S. Treasury Bills, due 12/4/97,
12/26/97, 1/2/98, 4/2/98, 8/20/98 and 10/15/98,
and U.S. Treasury Notes, 6.38% due 5/15/99,
6.00% due 10/15/99, 6.25% due 5/31/00 6,302,966 6,426,504
6,300,000 Repurchase agreement with J.P. Morgan,
5.65%, dated 10/31/97 and maturing 11/3/97,
collateralized by U.S. Treasury Bill, due 1/22/98 6,302,966 6,426,850
</TABLE>
7
- --------------------------------------------------------------------------------
<PAGE>
U.S. TREASURY MONEY MARKET FUND
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS
OCTOBER 31, 1997 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
FACE VALUE MARKET VALUE* COLLATERAL VALUE
- ---------- ---------------------------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS
COLLATERALIZED BY U.S. GOVERNMENT
OBLIGATIONS (continued)
- --------------------------------------------------------------------------------------------------------------
$ 6,300,000 Repurchase agreement with Merrill Lynch Inc.,
5.60%, dated 10/31/97 and maturing 11/3/97,
collateralized by U.S. Treasury Strip, due
5/15/16 $6,302,940 $6,426,886
6,300,000 Repurchase agreement with Morgan Stanley Inc.,
5.65%, dated 10/31/97 and maturing 11/3/97,
collateralized by U.S. Treasury Note, 6.25% due
8/31/00 6,302,966 6,438,101
28,763,000 Repurchase agreement with State Street Bank
Corp., 5.60%, dated 10/31/97 and maturing
11/3/97, collateralized by U.S. Treasury Bond,
8.38% due 8/15/08 28,776,424 29,793,905
6,300,000 Repurchase agreement with UBS Securities Inc.,
5.69%, dated 10/31/97 and maturing 11/3/97,
collateralized by U.S. Treasury Bonds, 7.88%
due 11/15/07, 8.75% due 11/15/08, 9.13%
due 5/15/09, 10.38% due 11/15/12, 11.75%
due 11/15/14, 9.88% due 11/15/15, 7.50%
due 11/15/16, 8.75% due 5/15/17, 8.50% due
2/15/20, 8.13% due 5/15/21, 8.13% due
8/15/21, 8.00% due 11/15/21, 7.50% due
11/15/24, 6.63% due 2/15/27 6,302,987 6,427,299
---------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $72,897,192) 72,897,192 74,793,973
---------------------------------
TOTAL INVESTMENTS
(Cost $130,250,583) 99.52% 130,250,583
Other Assets in Excess of Liabilities 0.48% 632,478
---------------------------------------
NET ASSETS 100.00% $130,883,061
---------------------------------------
---------------------------------------
</TABLE>
*See note 1 to financial statements.
8
- --------------------------------------------------------------------------------
<PAGE>
U.S. TREASURY MONEY MARKET FUND
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED OCTOBER 31, 1997 (UNAUDITED)
INVESTMENT INCOME $ 4,872,674
- -------------------------------------------------------------------------------
EXPENSES
Investment advisory fee (Note 3) 44,107
Administration Services * (Note 3) 371,095
Legal 37,403
Amortization of organization costs 34,609
Insurance 13,905
Registration 4,313
Other 2,039
- -------------------------------------------------------------------------------
Total Expenses 507,471
- -------------------------------------------------------------------------------
Expenses waived by administrator (218,935)
- -------------------------------------------------------------------------------
Net Expenses 288,536
- -------------------------------------------------------------------------------
NET INVESTMENT INCOME 4,584,138
- -------------------------------------------------------------------------------
REALIZED GAIN ON INVESTMENTS 6,180
- -------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 4,590,318
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
*Administration services include: fund accounting, daily pricing, licensing and
registration, shareholder services, transfer agency, fund ratings, audit,
training and printing.
See notes to financial statements.
9
- --------------------------------------------------------------------------------
<PAGE>
U.S. TREASURY MONEY MARKET FUND
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the Six Months For the
Ended October 31, 1997 Year Ended
(Unaudited) April 30, 1997
---------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 4,584,138 $ 13,275,525
Net realized gain on investments 6,180 0
- -----------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 4,590,318 13,275,525
Dividends to shareholders from net investment income (4,584,138) (13,275,525)
- -----------------------------------------------------------------------------------------------------------------
Change in net assets from operations 6,180 0
- -----------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Shares sold 497,004,408 762,297,270
Dividends reinvested 4,506,582 12,941,419
- -----------------------------------------------------------------------------------------------------------------
501,510,990 775,238,689
Shares redeemed (538,325,859) (923,910,706)
- -----------------------------------------------------------------------------------------------------------------
Change in net assets derived from beneficial interest
transactions (36,814,869) (148,672,017)
- -----------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS
(36,808,689) (148,672,017)
NET ASSETS:
Beginning of period 167,691,750 316,363,767
- -----------------------------------------------------------------------------------------------------------------
End of period $ 130,883,061 $ 167,691,750
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<PAGE>
U.S. TREASURY MONEY MARKET FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial
interest outstanding throughout the period indicated(1):
<TABLE>
<CAPTION>
For the Six
Months Ended For the Year Ended April 30,
October 31, 1997* 1997 1996 1995 (2)
-----------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value - beginning of period $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.03 0.05 0.05 0.04
- ----------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net investment income (0.03) (0.05) (0.05) (0.04)
Net asset value - end of period $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
Total return 2.68% 5.15% 5.44% 4.71%(3)
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $130,883 $167,692 $316,364 $109,055
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 0.33%(3) 0.30% 0.30% 0.50%(3)
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets 5.20%(3) 5.02% 5.36% 4.87%(3)
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net
assets without fee waivers 0.58%(3) 0.67% 0.71% 1.32%(3)
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets without fee waivers 4.96%(3) 4.65% 4.95% 4.05%(3)
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
*Unaudited
(1) The financial highlights prior to March 24, 1997 reflect the operations of
the Fund while the Fund's investment adviser was FGIC Advisors, Inc. GEIM
was approved as the Fund's investment adviser at a special meeting of the
shareholders of the Fund on March 21, 1997.
(2) Operations commenced on May 25, 1994.
(3) Annualized
See notes to financial statements.
11
- --------------------------------------------------------------------------------
<PAGE>
U.S. GOVERNMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1997 (UNAUDITED)
ASSETS
Investments, at amortized cost (which approximates market value)
- see accompanying statement $165,026,748
Interest receivable 327,961
Organizational costs, net of accumulated amortization 5,274
Other 14,568
- -------------------------------------------------------------------------------
Total Assets 165,374,551
- -------------------------------------------------------------------------------
LIABILITIES
Payable for securities purchased 8,950,204
Dividends payable 747,888
Advisory fees payable 5,603
Accrued expenses 61,952
- -------------------------------------------------------------------------------
Total Liabilities 9,765,647
- -------------------------------------------------------------------------------
NET ASSETS $155,608,904
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $155,773,322
Accumulated net realized loss (164,418)
- -------------------------------------------------------------------------------
NET ASSETS $155,608,904
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Shares of beneficial interest outstanding 155,622,033
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Net asset value and redemption value per share $ 1.00
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
See notes to financial statements.
12
- --------------------------------------------------------------------------------
<PAGE>
U.S. GOVERNMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS
OCTOBER 31, 1997 (UNAUDITED)
Face Value Market Value*
- ---------- ------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS 43.76%
- --------------------------------------------------------------------------------
Federal Home Loan Bank
$5,000,000 5.37%, 12/3/97 $4,977,272
4,000,000 5.48%, 1/12/98 3,957,358
6,675,000 5.48%, 1/14/98 6,601,730
Federal Home Loan Mortgage Corp.
7,000,000 5.40%, 11/7/97 6,995,780
5,000,000 5.47%, 12/17/97 4,966,552
Federal National Mortgage Association
9,820,000 5.47%, 11/24/97 9,788,633
10,000,000 5.41%, 12/16/97 9,934,911
6,000,000 5.47%, 1/21/98 5,927,913
Federal Farm Credit Bank
5,000,000 5.50%, 11/7/97 4,996,943
10,000,000 5.38%, 12/4/97 9,953,352
------------
TOTAL U.S. GOVERNMENT Agency obligations
(Cost $68,100,444) 68,100,444
------------
U.S. TREASURY OBLIGATIONS 7.42%
- --------------------------------------------------------------------------------
U.S. Treasury Notes:
4,000,000 7.38%, 11/15/97 4,002,223
5,000,000 6.00%, 11/30/97 5,001,422
2,500,000 8.25%, 7/15/98 2,546,605
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $11,550,250) 11,550,250
------------
13
- --------------------------------------------------------------------------------
<PAGE>
U.S. GOVERNMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS
OCTOBER 31, 1997 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Face Value Market Value* Collateral Value
- ---------- ---------------------------------
<C> <S> <C> <C>
REPURCHASE AGREEMENTS
COLLATERALIZED BY U.S.
GOVERNMENT OBLIGATIONS 54.87%
- ---------------------------------------------------------------------------------------------------------
$ 7,700,000 Repurchase agreement with Chase Securities
Inc., 5.63%, dated 10/31/97 and maturing
11/3/97, collateralized by U.S. Treasury Note,
5.88% due 2/15/00 $7,703,613 $7,854,011
7,700,000 Repurchase agreement with Deutsche Bank Corp.,
5.69%, dated 10/31/97 and maturing 11/3/97,
collateralized by U.S. Treasury Note, 5.13%
due 12/31/98 7,703,651 7,854,430
7,700,000 Repurchase agreement with Harris Nesbitt,
5.65%, dated 10/31/97 and maturing 11/3/97,
collateralized by U.S. Treasury Bill, due 4/2/98,
U.S. Treasury Bonds, 15.75% due 11/15/01, and
6.50% due 11/15/26, and U.S Treasury Notes, 6.00%
due 12/31/97, 9.25% due 8/15/98, 5.88% due
8/31/99, 5.88% due 11/15/99, 6.38% due
1/15/00, 6.88% due 3/31/00, 7.25% due 8/15/04,
5.88% due 11/15/05 7,703,625 7,854,119
7,700,000 Repurchase agreement with J.P. Morgan,
5.65%, dated 10/31/97 and maturing 11/3/97,
collateralized by U.S. Treasury Bill, due
1/22/98 7,703,625 7,854,709
7,700,000 Repurchase agreement with Merrill Lynch Inc.,
5.60%, dated 10/31/97 and maturing 11/3/97,
collateralized by U.S. Treasury Strip, due
5/15/16 7,703,593 7,854,035
7,700,000 Repurchase agreement with Morgan Stanley Inc.,
5.65%, dated 10/31/97 and maturing 11/3/97,
collateralized by U.S. Treasury Note, 6.25% due
1/31/02 7,703,626 7,872,710
</TABLE>
14
- --------------------------------------------------------------------------------
<PAGE>
U.S. GOVERNMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS
OCTOBER 31, 1997 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Face Value Market Value* Collateral Value
- ---------- ---------------------------------
<C> <S> <C> <C>
REPURCHASE AGREEMENTS
COLLATERALIZED BY U.S.
GOVERNMENT OBLIGATIONS (continued)
- ---------------------------------------------------------------------------------------------------------
$ 31,436,000 Repurchase agreement with State Street Bank
Corp., 5.60%, dated 10/31/97 and maturing
11/3/97, collateralized by U.S. Treasury Bond,
8.38% due 8/15/08 $31,450,670 $32,562,212
7,700,000 Repurchase agreement with UBS Securities Inc.,
5.69%, dated 10/31/97 and maturing 11/3/97,
collateralized by FNMA, 5.56% due 11/21/97 7,703,651 7,856,802
---------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $85,376,054) 85,376,054 87,563,028
---------------------------------
TOTAL INVESTMENTS
(Cost $165,026,748) 106.05% 165,026,748
Liabilities in Excess of Other Assets (6.05%) (9,417,844)
-----------------------------
NET ASSETS 100.00% $155,608,904
-----------------------------
-----------------------------
</TABLE>
*See note 1 to financial statements.
15
- --------------------------------------------------------------------------------
<PAGE>
U.S. GOVERNMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED OCTOBER 31, 1997 (UNAUDITED)
INVESTMENT INCOME $3,432,841
- --------------------------------------------------------------------------------
EXPENSES
Investment advisory fee (Note 3) 24,802
Administration services * (Note 3) 117,535
Legal 23,259
Amortization of organization costs 1,820
Insurance 1,049
Registration 3,687
Miscellaneous 1,275
- --------------------------------------------------------------------------------
Total Expenses 173,427
- --------------------------------------------------------------------------------
Expenses waived by administrator (49,417)
- --------------------------------------------------------------------------------
NET EXPENSES 124,010
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 3,308,831
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $3,308,831
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
* Administration services include: fund accounting, daily pricing, custody,
licensing and registration, shareholder servicing, transfer agency, fund
ratings, audit, training and printing.
See notes to financial statements.
16
- --------------------------------------------------------------------------------
<PAGE>
U.S. GOVERNMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the Six Months For the
Ended October 31, 1997 Year Ended
(Unaudited) April 30, 1997
---------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 3,308,831 $ 3,710,825
Net realized gain on investments 0 22,252
Net change in unrealized appreciation/depreciation 0 (40,458)
- -------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 3,308,831 3,692,619
Dividends to shareholders from net investment income (3,308,831) (3,710,825)
- -------------------------------------------------------------------------------------------
Change in net assets from operations 0 (18,206)
- -------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Shares sold 302,287,243 211,760,515
Dividends reinvested 2,540,970 2,781,667
- ------------------------------------------------------------------------------------------
304,828,213 214,542,182
Shares redeemed (236,634,961) (158,190,472)
- -------------------------------------------------------------------------------------------
Change in net assets derived from beneficial interest
transactions 68,193,252 56,351,710
- -------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS 68,193,252 56,333,504
NET ASSETS:
Beginning of year 87,415,652 31,082,148
- -------------------------------------------------------------------------------------------
End of year $ 155,608,904 $ 87,415,652
- -------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
17
- --------------------------------------------------------------------------------
<PAGE>
U.S. GOVERNMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest
outstanding throughout the period indicated(1):
<TABLE>
<CAPTION>
For the Six
Months Ended For the Year Ended April 30,
October 31, 1997* 1997 1996 1995 (2)
--------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value - beginning of period $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.03 0.14 0.55 0.44
Net realized and unrealized gain (loss)
on investments 0.00 0.00 0.00 (0.03)
- ----------------------------------------------------------------------------------------------------------------------------
Total income from investment operations 0.03 (0.14) 0.55 0.41
- ----------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.03) (0.14) (0.55) (0.44)
Stock Split (Note 4) 0.00 (8.97) 0.00 0.00
- ----------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions to
shareholders 0.03 (9.11) (0.55) (0.44)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $1.00 $1.00 $9.97 $9.97
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Total return 2.75% 5.23% 5.65% 4.73%(4)
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) 155,609 $87,416 $31,082 $41,893
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 0.20%(4) 0.23% 0.60% 0.45%(4)
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets 5.34%(4) 5.13% 5.38% 5.23%(4)
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 0.28%(4) 0.39% 0.85% 0.65%(4)
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets without fee waivers 5.26%(4) 4.97% 5.12% 5.03%(4)
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate n/a(3) n/a(3) 0.00% 827.35%(4)
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Unaudited
(1) The financial highlights prior to July 10, 1996 reflect the operations of
the Fund as the Short-Term U.S. Government Income Fund when it was not a
money market fund and had different investment policies and expenses, and
a fluctuating net asset value not maintained at $1.00 per share. The Fund
changed to a money market fund on July 10, 1996 following a Special Meeting
of the Fund's shareholders on June 27, 1996. The financial highlights prior
to March 24, 1997 also reflect the operations of the Fund while the Fund's
investment adviser was FGIC Advisors, Inc. GEIM was approved as the
Fund's investment adviser at a Special Meeting of the shareholders of the
Fund on March 21, 1997.
(2) Operations commenced on June 7, 1994.
(3) A portfolio turnover rate is calculated for non-money market funds and is
therefore no longer applicable for the U.S. Government Money Market Fund
(see Note 4).
(4) Annualized.
See notes to financial statements.
18
- --------------------------------------------------------------------------------
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Financial Investors Trust (the "Trust") is registered under the
Investment Company Act of 1940, as amended, as an open-end management
investment company. The U.S. Treasury Money Market Fund and the U.S.
Government Money Market Fund (the "Funds") are represented by separate series
of shares of beneficial interest of the Trust, which is organized as a
Delaware business trust.
The following is a summary of significant accounting policies
consistently followed by the Funds in the preparation of their financial
statements. The policies are in conformity with generally accepted
accounting principles.
INVESTMENT VALUATION: The U.S. Treasury Money Market Fund and the U.S.
Government Money Market Fund value their securities on the basis of amortized
cost which approximates market value. Prior to July 10, 1996 (see Note 4),
the U.S. Government Money Market Fund (then the Short-term U.S. Government
Income Fund) valued its securities, other than short-term securities, at
market value as determined by the last sales price of the day. Short-term
securities were valued at amortized cost which approximates market value.
REPURCHASE AGREEMENTS: The Funds' custodian takes possession of the
collateral pledged for investments in repurchase agreements. The underlying
collateral is valued daily on a mark-to-market basis to ensure that value,
including accrued interest, is at least 102% of the repurchase price. In the
event of default on the obligation to repurchase, the Funds have the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. Under certain circumstances, in the event of default by or
bankruptcy of the other party to the agreement, realization and/or retention
of the collateral may be subject to legal proceedings.
FEDERAL INCOME TAXES: It is the Funds' policy to continue to comply with
provisions of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to shareholders.
Therefore, no Federal Income Tax provisions are required.
ORGANIZATION COSTS: The Funds have deferred certain organization costs.
Such costs are being amortized over a 60 month period from the commencement
of operations. In the event that all, or part of the initial investment in
shares of the Funds are withdrawn during the amortization period, the
redemption proceeds will be reduced by the proportionate amount of the
unamortized organization costs represented by the ratio that the number of
shares redeemed bears to the number of initial shares outstanding at the time
of each redemption.
19
- --------------------------------------------------------------------------------
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
OTHER: Investment transactions are accounted for on the date the
investments are purchased or sold (trade date). Dividends from net
investment income are declared daily and paid monthly. Distributions of
accumulated net realized gains, if any, are declared at least once a year.
Realized gains and losses from investment transactions are reported on an
identified cost basis which is the same basis the Funds use for Federal
Income Tax Purposes.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from these estimates.
2. SHARES OF BENEFICIAL INTEREST
On October 31, 1997, there was an unlimited number of no par value shares
of beneficial interest authorized. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
U.S. Treasury Money Market Fund U.S. Government Money Market Fund
------------------------------------------ -------------------------------------------
For the Six Months For the Year Ended For the Six Months For the Year Ended
Ended Oct. 31, 1997 April 30, 1997 Ended Oct. 31, 1997 April 30, 1997
------------------------------------------ -------------------------------------------
<S> <C> <C> <C> <C>
Shares Sold 497,004,408 762,297,270 302,287,243 209,836,616
- ---------------------------------------------------------------------------------------------------------------------------
Shares Reinvested 4,506,582 12,941,419 2,540,970 2,517,778
- ---------------------------------------------------------------------------------------------------------------------------
Stock Split (Note 4) - - - 27,832,061
- ---------------------------------------------------------------------------------------------------------------------------
Total 501,510,990 775,238,689 304,828,213 240,186,455
- ---------------------------------------------------------------------------------------------------------------------------
Shares Redeemed 538,325,859 923,910,706 236,634,961 155,874,732
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase
(Decrease) (36,814,869) (148,672,017) 68,193,252 84,311,723
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
20
- --------------------------------------------------------------------------------
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
3. INVESTMENT ADVISORY FEES, ADMINISTRATION FEES AND OTHER RELATED PARTY
TRANSACTIONS
The Trust has entered into Investment Advisory Agreements with GE
Investment Management, Incorporated ("GEIM"). Pursuant to these advisory
agreements, GEIM is entitled to an advisory fee, computed daily and payable
monthly, based on the following fee schedule:
U.S Treasury U.S. Government
Average Net Assets Money Market Fund Money Market Fund
------------------ ----------------- -----------------
First $500 million 0.05% 0.04%
Next $500 million 0.075% 0.06%
Next $500 million 0.10% 0.08%
In excess of $1.5 billion 0.15% 0.08%
ALPS Mutual Funds Services, Inc. ("ALPS") serves as the Funds'
administrator. Prior to October 8, 1997, ALPS was entitled to receive a fee
from each Fund for its administrative services, computed daily and payable
monthly, at the annual rate of .18 percent of average daily net assets up to
$500 million, .15 percent on the next $500 million and .12 percent on assets
in excess of $1 billion, subject to a minimum monthly fee of $62,500 for the
U.S. Treasury Money Market Fund and $7,500 for the U.S Government Money
Market Fund. Effective October 8, 1997, the Trustees of the Trust approved
certain amendments to the administration fees paid to ALPS. Pursuant to the
revised administration fees, ALPS is now entitled to receive a fee from the
U.S. Treasury Money Market Fund at the annual rate of .26 percent of average
daily net assets up to $500 million, .24 percent on the next $500 million and
.22 percent on assets in excess of $1 billion, subject to a minimum monthly
fee of $50,000. For the U.S. Government Money Market Fund, ALPS is now
entitled to receive a fee at the annual rate of .16 percent of average daily
net assets up to $500 million, .14 percent on the next $500 million and .12
percent on assets in excess of $1 billion, subject to a minimum monthly fee
of $30,000. In addition, for the six months ended October 31, 1997, ALPS
waived a portion of its administration fee for each Fund.
One shareholder of the U.S. Treasury Money Market Fund owned 13.3 percent
of that Fund's outstanding shares at October 31, 1997. Three shareholders of
the U.S. Government Money Market Fund owned 20.7 percent, 15.7 percent and
14.2 percent of that Fund's outstanding shares at October 31, 1997.
21
- --------------------------------------------------------------------------------
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
4. FUNDAMENTAL CHANGES
At a Special Meeting of the U.S. Government Money Market Fund (the
"Fund") (formerly the Short-Term U.S. Government Income Fund) held on June
27, 1996, shareholders of the Fund approved an amendment to a fundamental
investment restriction of the Fund to allow for the purchase of United States
Government agency and instrumentality obligations as well as repurchase
agreements collateralized to 102% by direct obligations of United States
Government agencies and instrumentalities. The shareholders also approved
that the Fund change from a non-money market fund to a money market fund and
that the Fund change its name to the U.S. Government Money Market Fund to
reflect these changes. After the close of business on July 9, 1996, the
changes approved by the shareholders of the Fund were implemented. As a money
market fund, the Fund seeks to maintain a net asset value of $1.00 for
purposes of purchases and redemptions. In order to bring the net asset value
of the Fund to $1.00, the Fund executed a stock split of 9.97 to 1 after the
close of business on July 9, 1996.
22
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INTENTIONALLY
LEFT BLANK
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
23
- --------------------------------------------------------------------------------
