<PAGE>
LETTER FROM THE INVESTMENT ADVISER
- --------------------------------------------------------------------------------
Dear Fellow Shareholders:
We are very pleased to report on the first full year of operations for the
Aristata Mutual Funds. The fiscal year ended April 30, 1999 saw higher prices
for both the stock and bond markets, and the stock market was the standout as it
set new, record breaking levels during the year. Looking back on the events that
shaped this first year, the Dow Jones Industrial Average breaking 10,000 and the
disturbing Yugoslavia developments come to mind. The fact that the 10,000 mark
was pierced at a time of international tensions again highlights the amazing
strength of the U.S economy, the resilience of the stock market, and the
unwavering optimism of investors. As summarized below, the first anniversary of
the Aristata Funds concluded with positive total returns.
HIGHLIGHTS OF INVESTMENT RESULTS
The closing three months of the year were among the best for the Aristata Equity
Fund. It was during this quarter that strong signs began to develop of a broader
based stock market advance. Until recently, the record setting pace of the stock
market appeared to be the reflection of a relatively few large capitalization
growth companies. We have felt for some time that there was good value (and
considerably less risk) in sectors outside the "chosen few stocks," and that at
some point those opportunities would be recognized. In our opinion, the
beginnings of a broader based advance is constructive and this should constitute
a healthier foundation for the market in general.
In contrast, the last few months were difficult for the Aristata Quality Bond
Fund and the Aristata Colorado Quality Tax-Exempt Fund. These months saw a
modest, but persistent rise in interest rates and concomitant decline in bond
prices. Surprising strong economic growth, especially during the last six
months, and growing inflation concerns pushed interest rates higher. However,
these price declines were tempered somewhat in the Aristata bond portfolios
because of our intermediate maturities and high quality bond investments.
<TABLE>
<CAPTION>
TOTAL RETURNS ENDING APRIL 30, 1999
3 MONTHS 6 MONTHS 12 MONTHS
-------- -------- ----------
<S> <C> <C> <C>
ARISTATA EQUITY FUND 10.4% 15.1% 9.4%
Standard & Poor's 500 4.7 22.3 21.8
Value Line Index 3.8 10.2 -9.3
Lipper Equity Income Index 7.3 14.6 8.9
ARISTATA QUALITY BOND FUND -0.6% 0.4% 5.5%
Lehman Brothers Government/Corp Bond Index -1.7 -0.1 6.3
Lehman Brothers Government/Corp Intermediate Bond Index -0.4 0.5 6.4
Lipper Corporate Debt Funds A Rated Average -1.3 1.0 4.9
ARISTATA COLORADO QUALITY TAX-EXEMPT FUND -0.4% 1.1% 5.4%
Lipper Municipal Intermediate Bond Index -0.3 1.4 6.0
Lipper Colorado Municipal Bond Fund Average -0.4 1.2 5.9
Lehman Brothers Municipal Bond Index -0.1 1.8 7.0
</TABLE>
[LOGO] ---------------------------------------------------------------------- 1
<PAGE>
LETTER FROM THE INVESTMENT ADVISER
- --------------------------------------------------------------------------------
CURRENT OBSERVATIONS IN PERSPECTIVE
SMOOTH SAILING CONTINUES TO BE THE FORECAST FOR THE ECONOMY, AND THESE CLEAR
SKIES HAVE BEEN A POSITIVE FOR FINANCIAL MARKETS. The economy grew at a 4.1%
annual rate in the first calendar quarter of 1999. We are now entering the 9th
year of economic expansion, which is the second longest post-war recovery. Major
economic indicators, including inflation, unemployment, automobile and home
sales, show no signs the current robust economy is about to falter. At this late
stage of previous economic cycles storm clouds are usually visible, namely
inflation was heating-up and interest rates were escalating. That is not the
case today. Inflation is at generation lows and interest rates are subdued. ALL
THESE FORCES ARE CREATING A POSITIVE PSYCHOLOGY FOR CONSUMERS AS EVIDENCED BY
CONTINUED HIGH CONSUMER CONFIDENCE.
BUT AFTER EIGHT AMAZING YEARS OF ECONOMIC GROWTH CAN THE ECONOMY CONTINUE TO
EXPAND? Corporate profits actually fell for all of 1998. For corporate profits
to resume strong growth it is necessary that this aging economy remain well
balanced. Inflation, employment, interest rates, and consumer confidence must
remain cooperative. This delicate balance is not impossible, but it does become
more difficult as the strains of an aging expansion (e.g. high levels of
consumer debt) manifest themselves.
A dramatic characteristic of today's markets is the CONTINUED PERFORMANCE
DISPARITY WITHIN THE MARKET. Three forces are influencing the market: "value"
type investments versus "growth" selections, technology versus more traditional
manufacturing, and large-company versus small-company. Each of these three
sectors has developed huge divergence in valuations between the popular and the
not-so-popular stocks. Historically such disparate returns in investment styles
tend to average out over time. In a stock market as bifurcated as today's, we
believe there are attractive investment opportunities to capitalize on. THE FLIP
SIDE OF OVERVALUATION IN SOME SECTORS IS THAT VERY REASONABLY PRICED INVESTMENTS
EXIST IN THE OUT-OF-FAVOR SECTORS. Our research continues to seek out and find
those situations that offer attractive valuations and growth opportunities for
the assets entrusted to us.
SUMMARY
We are constantly impressed with how pervasive common stock ownership is today.
It is a part of human nature that people are influenced most strongly by their
recent experiences. The experiences of both stock and bond investors have been
exceptionally rewarding and strongly reinforcing over recent years. Five year
stock returns have averaged over 25% annually and bonds have returned over 10%
annually. Both of these returns are more than double the long-term average.
Against this backdrop investor confidence has continued to move higher.
In today's markets, which have demonstrated increased volatility, it will be
important that investors maintain a long-term focus. We often counsel that a
balanced portfolio, which includes for most
2 -----------------------------------------------------------------------[LOGO]
<PAGE>
LETTER FROM THE INVESTMENT ADVISER
- --------------------------------------------------------------------------------
investors some bonds as well as stocks, is an effective way to reduce price
volatility. This diversification can create a "comfort zone" for investors
during rapidly changing market conditions.
We thank you for your investment in the Aristata Mutual Funds, and we appreciate
the trust and confidence you have placed with us. Our goal is to deliver
long-term successful investment returns through sound investment disciplines.
Sincerely,
/s/ H. David Lansdowne
H. David Lansdowne, CFA
President
Tempest, Isenhart, Chafee, Lansdowne & Associates, Inc.
[LOGO] ---------------------------------------------------------------------- 3
<PAGE>
FUND REVIEW
- --------------------------------------------------------------------------------
ARISTATA EQUITY FUND
PERFORMANCE
The Aristata Equity Fund returned 15.1% and 9.4% during the last six and twelve
months respectively. While these are strong absolute results and are competitive
with the equity income mutual fund peer group the Fund fell short of the
extraordinary gains achieved by the market as measured by the Standard & Poor's
500. There has been much written about the performance disparity of the overall
market compared to the exceptional results of a relatively few large-cap growth
companies that increasingly influence the S&P 500. However, for the 3 months
ending April 30th there has been a broadening in numbers of stocks that are
performing better than the S&P 500. These recent positive trends are apparent
for the Aristata Equity Fund as evidenced in the latest 3 month results. In our
opinion, the broader advance of stocks in recent months is constructive and this
is a healthy development for the market in general. The recent apparent change
in market leadership is quite dramatic and benefited many of the stocks
contained in the Aristata portfolio.
EQUITY MARKET OVERVIEW
During the past twelve months, three main forces negatively impacted the
Aristata Equity Fund's comparative performance. Specifically, the VALUE
INVESTMENT STYLE has lagged significantly the returns posted by growth managers,
and COMPANY SIZE (i.e. large capitalization stock performance) trounced the
performance of most stocks. We concur with The Wall Street Journal article that
appeared on January 7, 1999, which made the following observation:
[CHART]
IN FACT, 83% OF DIVERSIFIED U.S.-STOCK FUNDS UNDER PERFORMED THE S&P 500 IN
1998, ACCORDING TO LIPPER. STILL, INVESTORS SHOULDN'T CONCLUDE THAT FUND
MANAGERS HAVE COLLECTIVELY LOST THEIR TOUCH...THE HUGE ADVANCE IN THE S&P
500 WAS DRIVEN BY STRONG RESULTS AT A SURPRISINGLY SHORT LIST OF BIG
FAST-GROWING COMPANIES, SUCH AS TECHNOLOGY GIANTS INTEL CORP., AND DELL
COMPUTER...THE RUSSELL 2000 SMALL-STOCK INDEX ENDED 1998 WITH A 3.45%
NEGATIVE RETURN.
4 -----------------------------------------------------------------------[LOGO]
<PAGE>
FUND REVIEW
- --------------------------------------------------------------------------------
ARISTATA EQUITY FUND (CON'T.)
Finally, DIVERSIFICATION was not a "performance" virtue last year. Controlling
risk by avoiding concentration (a mandate we feel is still very important) meant
that it was difficult to "beat the market." Aristata's diversification included
several key positions that recorded negative returns last year. Some of the
larger portfolio representations and the average 1998 industry returns included:
REITS (-12%), oil and gas (-18%), oil and energy service (-50%), and related
commodity areas-chemicals,paper,metals (-20%). These sectors represented about
20% of total Aristata investments, and while not all these positions were owned
for the entire year these investments did significantly curtail 1998 returns.
The good news, however, is that many of these industries have been much stronger
performers in 1999.
PORTFOLIO UPDATE
The Aristata Equity Fund offers a solid, low-risk, diversified, value oriented
investment portfolio especially attractive in today's market. The portfolio's
current valuation characteristics (i.e. a price-to-
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE ARISTATA EQUITY
FUND, THE S&P 500 AND THE VALUE LINE COMPOSITE.
[GRAPH]
<TABLE>
<CAPTION>
- --------------------------------
PERFORMANCE
AS OF APRIL 30, 1999
- --------------------------------
AVERAGE ANNUAL TOTAL RETURN (1)
<S> <C>
1 Year 9.39%
Since Inception 12.23%
- --------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------
FUND VALUE VS. INDEX VALUE
AT APRIL 30, 1999
- --------------------------------
<S> <C>
Aristata Equity Fund $11,435
S&P 500 $12,939
Value Line Composite $9,517
- --------------------------------
</TABLE>
[LOGO]----------------------------------------------------------------------- 5
<PAGE>
FUND REVIEW
- --------------------------------------------------------------------------------
ARISTATA EQUITY FUND (CON'T.)
earnings ratio (PE) of 16x versus 26x for the market and its above average
company yield of 2.4%) exemplify the low risk, value orientation of the current
investments. Stock market history strongly demonstrates that performance will
shift, at some point, to encompass a broader list of companies. The Aristata
Equity portfolio, with its well-diversified holdings, is positioned to benefit
from this anticipated change.
ARISTATA QUALITY BOND FUND AND ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
PERFORMANCE
[CHART]
The Aristata Quality Bond Fund's total return for the year ending April 30, 1999
was 5.49%. The Lehman Brothers Government/Corporate Bond Index and the Lehman
Brothers Government/Corporate Intermediate Bond Index registered comparable
returns of 6.28% and 6.37% respectively. Net assets of the Aristata Quality Bond
Fund were $52.0 million as of April 30th. The Aristata Colorado Quality
Tax-Exempt Fund had net assets of $17.5 million for the same ending period,
while its 12 month total return was 5.40%. Comparable returns for the Lipper
Municipal Intermediate Bond Index and the Lehman Brothers Municipal Bond Index
were 5.98% and 6.95% respectively.
[CHART]
FIXED INCOME MARKET REVIEW
The fixed income markets experienced a volatile start for 1999 as long-term
Treasury yields rose more than 60 basis points since the beginning of the year.
6 -----------------------------------------------------------------------[LOGO]
<PAGE>
FUND REVIEW
- --------------------------------------------------------------------------------
ARISTATA QUALITY BOND FUND AND ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
(CON'T.)
Concerns that eight years of U.S. economic growth, coupled with a robust 4th
quarter economic activity level, have led to fears of higher inflation.
The continued vigor within the economy is being led by the strength in personal
income growth, the surge in equity wealth, and high levels of consumer
confidence. Retail and auto sales have remained strong. Commodity prices have
stabilized, while crude oil prices are up 60% since February.
During the past 6-month period U.S. bond prices have fallen. However, overall
inflationary indicators have stayed relatively mild despite the economy's
extraordinary strength. Also contributing to the volatility in the fixed income
markets has been the ongoing military conflict in Kosovo.
The Federal Reserve has left short-term interest rates unchanged since its 1st
quarter Federal Open Market Committee meeting. In the months ahead, continued
economic productivity and benign inflation may be needed for the Federal Reserve
to maintain its stable monetary policy.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE ARISTATA QUALITY
BOND FUND, THE LEHMAN BROTHERS GOVERNMENT/CORPORATE BOND INDEX AND THE LEHMAN
BROTHERS GOVERNMENT/CORPORATE INTERMEDIATE BOND INDEX.
[GRAPH]
<TABLE>
<CAPTION>
- --------------------------------
PERFORMANCE
AS OF APRIL 30, 1999
- --------------------------------
AVERAGE ANNUAL TOTAL RETURN (1)
<S> <C>
1 Year 5.49%
Since Inception 5.33%
- --------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------
FUND VALUE VS. INDEX VALUE
AT APRIL 30, 1999
- ------------------------------------------------------------
<S> <C>
Aristata Quality Bond Fund $10,622
Lehman Bros. Gov't/Corp. Bond Index $10,713
Lehman Bros. Gov't/Corp. Interm. Bond Index $10,723
- ------------------------------------------------------------
</TABLE>
[LOGO]----------------------------------------------------------------------- 7
<PAGE>
FUND IN REVIEW
- --------------------------------------------------------------------------------
ARISTATA QUALITY BOND FUND AND ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
(CON'T.)
PORTFOLIO UPDATE
ARISTATA QUALITY BOND FUND
[CHART]
During the period under review, a large supply of corporate and agency debt
provided us with an opportunity to increase our corporate and agency holdings
with attractive yields. Federal government budget surpluses also reduced the
amount of issuance of Treasury securities. The Aristata Quality Bond Fund holds
58% in high-grade corporate bonds and 39% in U.S. Government and agency
obligations.
Reflective of the turbulence in the Treasury market, the taxable Treasury
yield curve (yield difference between 2 and 30 year bonds) steepened.
Long-term treasury yields rose from a low of 4.71% in October, to 5.60% at the
end of April. Throughout this time, the Fund maintained a well-diversified mix
of high quality intermediate bonds. The Fund's average maturity on April 30th
was 6.6 years.
In the months ahead, a renewed appetite for yield should benefit corporate and
agency securities.
[CHART]
PORTFOLIO UPDATE
ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
After reaching a near record in 1998 issuance, the number of municipal new issue
bonds has declined significantly in early 1999. Overall municipal volume of the
1st quarter 1999 is down almost 20% from the 1st quarter a year ago.
During the latter part of 1998, municipal bond yields offered compelling value
over other fixed income securities. Intermediate municipal yields were in excess
of 90% of Treasury yields, while
8 -----------------------------------------------------------------------[LOGO]
<PAGE>
FUND IN REVIEW
- --------------------------------------------------------------------------------
ARISTATA QUALITY BOND FUND AND ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
(CON'T.)
long-term municipal yields were almost 100% of long taxable yields. As Colorado
municipal issues were offered, the Aristata Colorado Quality Tax-Exempt Fund was
able to find attractive tax-exempt yields. The average maturity of the Fund was
7.6 years on April 30th.
We continue to focus on the high credit quality sectors of the municipal market.
Our emphasis will be to maintain a balanced selection of Colorado municipal
bonds, while providing tax-free income to the portfolio.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE ARISTATA COLORADO
QUALITY TAX-EXEMPT FUND, THE LIPPER MUNICIPAL INTERMEDIATE BOND FUND INDEX,
AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX.
[GRAPH]
<TABLE>
<CAPTION>
- --------------------------------
PERFORMANCE
AS OF APRIL 30, 1999
- --------------------------------
AVERAGE ANNUAL TOTAL RETURN (1)
<S> <C>
1 Year 5.40%
Since Inception 4.83%
- --------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------
FUND VALUE VS. INDEX VALUE
AT APRIL 30, 1999
- ------------------------------------------------------------
<S> <C>
Aristata Colorado Quality Tax-Exempt Fund $10,564
Lipper Municipal Interm. Bond Fund Index $10,556
Lehman Brothers Municipal Bond Index $10,656
- ------------------------------------------------------------
</TABLE>
(1) TOTAL RETURN IS THE CHANGE IN THE VALUE OF AN INVESTMENT IN THE FUND AFTER
REINVESTING ALL INCOME AND CAPITAL GAINS. IT IS CALCULATED BY DIVIDING THE
CHANGE IN TOTAL INVESTMENT VALUE BY THE INITIAL VALUE OF THE INVESTMENT. TOTAL
RETURN FIGURES ARE NET OF ALL FUND EXPENSES AND REFLECT ALL FEE WAIVERS. WITHOUT
THESE FEE WAIVERS, TOTAL RETURN WOULD HAVE BEEN LOWER. THE INCEPTION DATE OF
EACH FUND IS MARCH 2, 1998. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE TOTAL RETURN FIGURES REPRESENT
PAST PERFORMANCE AND ARE NOT INDICATIVE OF FUTURE RESULTS.
(2) QUALITY PROFILE BASED ON EACH SECURITY'S HIGHEST RATING FROM MOODY'S OR S&P.
THE VIEWS EXPRESSED IN THIS ADVISER UPDATE REFLECT THE ADVISER'S VIEW ONLY
THROUGH APRIL 30, 1999. THE ADVISER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME
BASED ON MARKET AND OTHER CONDITIONS.
[LOGO]----------------------------------------------------------------------- 9
<PAGE>
FUND IN REVIEW
- --------------------------------------------------------------------------------
DEFINITION OF INDICES
The LEHMAN BROTHERS GOVERNMENT/CORPORATE BOND INDEX and the LEHMAN BROTHERS
GOVERNMENT/CORPORATE INTERMEDIATE BOND INDEX are unmanaged indices which are a
broad measure of bond performance that reflects the reinvestment of income
dividends and capital gain distributions, if any, but do not reflect fees,
brokerage commissions, or other expenses of investing. Intermediate indices
include bonds with maturities of up to ten years.
The LEHMAN BROTHERS MUNICIPAL BOND INDEX is an unmanaged index which is a broad
measure of tax-exempt bond performance that reflects the reinvestment of income
dividends and capital gain distributions, if any, but does not reflect fees,
brokerage commissions, or other expenses of investing.
The LIPPER COLORADO MUNICIPAL BOND FUND AVERAGE is an unmanaged index which
measures the performance of bonds funds which are exempt from taxation of the
state of Colorado. The index return reflects the reinvestment of income
dividends and capital gain distributions, if any.
The LIPPER CORPORATE DEBT FUNDS A RATED AVERAGE is an unmanaged index which
measures the performance of fixed income funds which invest at least 65% of
assets in corporate debt issues rated "A" or better or government issues. The
index return reflects the reinvestment of income dividends and capital gain
distributions, if any.
The LIPPER EQUITY INCOME INDEX, an unmanaged index, is created using the mean
change in NAV on a daily basis of its 30 component funds. The funds are the 30
largest funds by asset size meeting the following objective: A fund that seeks
relatively high current income and growth of income through investing 60% or
more of its portfolio in equity securities. The largest share class in a
portfolio is used and eliminates all other share classes. The index return
reflects the reinvestment of income dividends and capital gain distributions, if
any.
The LIPPER MUNICIPAL INTERMEDIATE BOND FUND INDEX is an unmanaged index which
measures the performance of intermediate municipal debt funds (i.e. those with
dollar-weighted average maturities of 5 to 10 years). The index return reflects
the reinvestment of income dividends and capital gain distributions, if any.
The STANDARD & POOR'S 500 INDEX (S&P 500) is an unmanaged index containing
common stocks of 500 industrial, transportation, utility and financial
companies, regarded as generally representative of the U.S. stock market. The
index return reflects the reinvestment of income dividends and capital gain
distributions, if any, but does not reflect fees, brokerage commissions, or
other expenses of investing.
The VALUE LINE COMPOSITE INDEX is an unmanaged equally weighted geometric
average composed of approximately 1700 stocks traded on the New York Stock
Exchange, American Stock Exchange, and over-the-counter that are tracked by the
Value Line Investment Survey. The index return reflects the reinvestment of
income dividends and capital gain distributions, if any, but does not reflect
fees, brokerage commissions, or other expenses of investing.
10 -----------------------------------------------------------------------[LOGO]
<PAGE>
[LETTERHEAD]
INDEPENDENT AUDITORS' REPORT
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS
FINANCIAL INVESTORS TRUST:
We have audited the accompanying statements of assets and liabilities,
including the statements of investments, of the Aristata Equity Fund,
Aristata Quality Bond Fund and Aristata Colorado Quality Tax-Exempt Fund of
Financial Investors Trust as of April 30, 1999, the related statements of
operations for the year then ended, the statements of changes in net assets
and financial highlights for the period from March 2, 1998 to April 30, 1998
and the year ended April 30, 1999. These financial statements and financial
highlights are the responsibility of the Trust's Management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned at April 30, 1999, by correspondence with
the custodian and brokers; where replies were not received from brokers, we
performed other auditing procedures. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
the Aristata Equity Fund, Aristata Quality Bond Fund and Aristata Colorado
Quality Tax-Exempt Fund of Financial Investors Trust as of April 30, 1999,
and the results of their operations for the year then ended, the changes in
their net assets and financial highlights for the period from March 2, 1998
to April 30, 1998 and the year ended April 30,1999 in conformity with
generally accepted accounting principles.
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
DENVER, COLORADO
JUNE 3, 1999
- ---------------
DELOITTE TOUCHE
TOHMATSU
INTERNATIONAL
- ---------------
[LOGO]----------------------------------------------------------------------- 11
<PAGE>
ARISTATA FUNDS
- --------------------------------------------------------------------------------
ARISTATA EQUITY FUND
STATEMENT OF INVESTMENTS
APRIL 30, 1999
<TABLE>
<CAPTION>
Shares Value*
------ ------
<S> <C> <C>
COMMON STOCKS - 96.60%
BASIC MATERIALS - 3.37%
CHEMICALS - 1.95%
Hanna (M. A.) Co. 55,000 $ 890,312
Sigma Aldrich Corp. 29,200 949,000
------------
1,839,312
------------
METALS - 0.61%
Worthington Industries, Inc. 42,000 580,125
------------
PAPER/PACKAGING - 0.81%
Caraustar Industries, Inc. 30,000 765,000
------------
TOTAL BASIC MATERIALS 3,184,437
------------
BUILDING/REAL ESTATE - 8.98%
BUILDING MATERIALS - 4.47%
Lafarge Corp. 57,000 1,927,313
Vulcan Materials Co. 48,000 2,292,000
------------
4,219,313
------------
R.E.I.T./REAL ESTATE - 4.51%
Archstone Community Trust 51,000 1,157,062
Duke Realty Investments, Inc. 90,000 2,115,000
Health & Retirement Pptys Trust 67,000 979,875
------------
4,251,937
------------
TOTAL BUILDING/REAL ESTATE 8,471,250
------------
CONSUMER DURABLES - 4.23%
HOUSEHOLD GOODS - 4.23%
Eastman Kodak Co. 23,500 1,753,688
La Z Boy, Inc. 55,000 1,082,812
Leggett & Platt, Inc. 50,000 1,153,125
------------
TOTAL CONSUMER DURABLES 3,989,625
------------
CONSUMER SERVICES - 0.93%
RESTAURANTS - 0.93%
Bob Evans Farms, Inc. 48,000 879,000
------------
TOTAL CONSUMER SERVICES 879,000
------------
CONSUMER STAPLES - 12.50%
FOOD/BEVERAGE - 3.92%
Corn Products Int'l, Inc. 17,000 490,875
Dole Food Co. 27,000 857,250
Earthgrains Co. 50,000 1,059,375
Riviana Foods, Inc. 66,000 1,287,000
------------
3,694,500
------------
PACKAGED GOODS - 2.63%
Avon Products, Inc. 38,000 2,063,875
Helen of Troy Corp, Ltd.** 30,000 420,000
------------
2,483,875
------------
RETAIL - 4.04%
Dayton Hudson Corp. 38,000 2,557,875
May Department Stores Co. 31,500 1,254,094
------------
3,811,969
------------
TEXTILE/APPAREL - 1.91%
Burlington Industries, Inc.** 150,000 1,218,750
Stride Rite Corp. 50,000 584,375
------------
1,803,125
------------
TOTAL CONSUMER STAPLES 11,793,469
------------
ENERGY - 11.27%
OIL FIELD SERVICES - 2.91%
Baker Hughes, Inc. 49,000 1,463,875
Halliburton Co. 30,000 1,278,750
------------
2,742,625
------------
OIL & GAS - 8.36%
Atlantic Richfield Co. 43,800 3,676,462
Royal Dutch Petroleum Co. 19,200 1,126,800
Texaco, Inc. 49,200 3,087,300
------------
7,890,562
------------
TOTAL ENERGY 10,633,187
------------
FINANCIAL - 6.82%
BANKS/S & L/FINANCE/LEASE - 3.70%
Morgan J. P. & Co., Inc. 12,000 1,617,000
PNC Bank Corp. 32,400 1,875,150
------------
3,492,150
------------
BROKERS/FINANCIAL SERVICES - 2.35%
Marsh & McLennan Cos., Inc. 29,000 2,220,312
------------
</TABLE>
12 -----------------------------------------------------------------------[LOGO]
<PAGE>
ARISTATA FUNDS
- --------------------------------------------------------------------------------
ARISTATA EQUITY FUND
STATEMENT OF INVESTMENTS
APRIL 30, 1999 (CONTINUED)
<TABLE>
<CAPTION>
Shares Value*
------ ------
<S> <C> <C>
FINANCIAL (CONTINUED)
INSURANCE - 0.77%
Allstate Corp. 20,020 $ 728,228
------------
TOTAL FINANCIAL 6,440,690
------------
HEALTHCARE - 8.04%
DRUGS - 4.47%
American Home Products Corp. 45,000 2,745,000
AMGEN, Inc.** 24,000 1,474,500
------------
4,219,500
------------
HEALTHCARE SERVICES - 1.98%
United Healthcare Corp. 33,200 1,863,350
------------
MEDICAL PRODUCTS - 1.59%
Bausch & Lomb, Inc. 20,000 1,500,000
------------
TOTAL HEALTHCARE 7,582,850
INDUSTRIAL PRODUCTS - 23.26%
AEROSPACE - 2.00%
AAR Corp. 47,000 893,000
B.F. Goodrich & Co. 25,000 993,750
------------
1,886,750
------------
ELECTRICAL PRODUCTS - 6.29%
ABB AB Sponsored ADR 157,000 2,198,000
Emerson Electric Co. 23,000 1,483,500
Molex, Inc. 40,000 1,290,000
Motorola, Inc. 12,000 961,500
------------
5,933,000
------------
INDUSTRIAL COMPONENTS - 7.69%
CAE, Inc. 100,500 638,336
Hussmann International, Inc. 50,000 793,750
Ingersoll Rand Co. 53,750 3,718,828
Kennametal, Inc. 37,000 982,812
Pall Corp. 61,000 1,124,688
------------
7,258,414
------------
OFFICE EQUIPMENT/E.D.P. - 7.28%
Electronic Data Systems Corp. 25,000 1,343,750
Hewlett-Packard Co. 17,500 1,380,313
International Business
Machines Corp. 16,500 3,451,594
Seagate Technology, Inc.** 25,000 696,875
------------
6,872,532
------------
TOTAL INDUSTRIAL PRODUCTS $ 21,950,696
------------
TRANSPORTATION - 3.09%
RAILS/TRUCKS/MARINE - 3.09%
Roadway Express, Inc. 104,500 1,881,000
Ryder System, Inc. 39,300 1,036,537
------------
TOTAL TRANSPORTATION 2,917,537
------------
UTILITIES - 14.11%
COMMUNICATIONS - 5.03%
Bellsouth Corp. 56,000 2,506,000
GTE Corp. 33,500 2,242,406
------------
4,748,406
------------
ELECTRIC UTILITIES - 5.08%
Duke Energy Corp. 23,000 1,288,000
New Century Energies, Inc. 76,150 2,665,250
Utilicorp United, Inc. 34,500 843,094
------------
4,796,344
------------
GAS UTILITIES - 4.00%
Northwest Natural Gas Co. 81,750 1,844,484
Questar Corp. 106,100 1,929,694
------------
3,774,178
------------
TOTAL UTILITIES 13,318,928
------------
TOTAL COMMON STOCKS 91,161,669
(Cost $53,890,093) ------------
CLOSED-END FUNDS - 1.84%
FOREIGN - 1.84%
Asia Tigers Fund 1,000,000 868,750
Morgan Stanley Asia-Pac. Fund 95,000 866,875
------------
TOTAL CLOSED-END FUNDS 1,735,625
(Cost $1,445,901) ------------
SHORT-TERM INVESTMENTS - 0.87%
MUTUAL FUNDS - 0.87%
Fifth Third C/P Fund 822,487 822,487
------------
TOTAL SHORT-TERM INVESTMENTS 822,487
(Cost $822,487) ------------
</TABLE>
[LOGO]----------------------------------------------------------------------- 13
<PAGE>
ARISTATA FUNDS
- --------------------------------------------------------------------------------
ARISTATA EQUITY FUND
STATEMENT OF INVESTMENTS
APRIL 30, 1999 (CONTINUED)
<TABLE>
<CAPTION>
Value*
------
<S> <C> <C>
TOTAL INVESTMENTS 99.31% 93,719,781
(Cost $56,158,481)
Other Assets in Excess
of Liabilities 0.69% 652,966
--------------------------
NET ASSETS 100.00% $94,372,747
--------------------------
--------------------------
</TABLE>
* See note 1 to financial statements.
**Denotes non-income producing security.
ARISTATA QUALITY BOND FUND
STATEMENT OF INVESTMENTS
APRIL 30, 1999
<TABLE>
<CAPTION>
Due Bond Rating** Principal
Date Coupon Moody's Amount Value*
- ---- ------ ------- ------ ------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT &
AGENCY OBLIGATIONS - 39.10%
U.S. TREASURY NOTES - 6.82%
08/15/05 6.500% Aaa $1,900,000 $2,014,000
07/15/06 7.000% Aaa 1,400,000 1,531,250
------------
3,545,250
------------
U.S. TREASURY BONDS - 6.67%
02/15/07 7.625% Aaa 1,367,000 1,443,467
11/15/07 7.875% Aaa 920,000 991,588
05/15/10 10.000% Aaa 840,000 1,030,313
------------
3,465,368
------------
FEDERAL FARM CREDIT BANK - 0.95%
01/22/08 6.120% Aaa 500,000 492,304
------------
FEDERAL HOME LOAN BANK - 6.35%
07/27/07 7.000% Aaa 800,000 806,490
11/14/07 7.000% Aaa 300,000 302,991
01/07/13 7.010% Aaa 500,000 495,830
09/18/13 6.535% Aaa 500,000 485,923
10/29/13 6.150% Aaa 250,000 238,383
02/25/14 6.540% Aaa 250,000 242,371
03/10/14 6.730% Aaa 250,000 244,673
06/08/18 7.000% Aaa 500,000 487,205
------------
3,303,866
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 6.09%
01/20/09 6.265% Aaa 500,000 489,705
11/05/12 7.115% Aaa 800,000 810,617
03/18/13 6.650% Aaa 500,000 494,828
07/08/13 6.850% Aaa 500,000 492,350
11/19/13 6.600% Aaa 500,000 486,570
03/03/14 6.800% Aaa 200,000 196,429
04/14/14 6.950% Aaa 200,000 197,188
------------
3,167,687
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 12.22%
12/27/04 6.400% Aaa 500,000 500,850
05/23/05 6.430% Aaa 500,000 500,520
09/20/06 7.930% Aaa 800,000 808,420
</TABLE>
14 -----------------------------------------------------------------------[LOGO]
<PAGE>
ARISTATA FUNDS
- --------------------------------------------------------------------------------
ARISTATA QUALITY BOND FUND
STATEMENT OF INVESTMENTS
APRIL 30, 1999 (CONTINUED)
<TABLE>
<CAPTION>
Due Bond Rating** Principal
Date Coupon Moody's Amount Value*
- ---- ------ ------- ------ ------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT &
AGENCY OBLIGATIONS (CONTINUED)
FEDERAL NATIONAL MORTGAGE ASSOCIATION (CONTINUED)
06/26/07 7.170% Aaa $ 500,000 $ 505,569
01/29/08 6.460% Aaa 500,000 496,769
04/24/08 6.650% Aaa 500,000 494,679
05/05/08 6.780% Aaa 250,000 249,552
02/04/09 6.030% Aaa 500,000 482,473
10/16/12 7.080% Aaa 400,000 400,451
12/03/12 6.920% Aaa 800,000 801,483
01/22/13 6.440% Aaa 500,000 491,383
01/25/13 5.920% Aaa 500,000 492,506
03/10/16 8.200% Aaa 105,000 125,550
------------
6,350,205
------------
TOTAL U.S. GOVERNMENT &
AGENCY OBLIGATIONS 20,324,680
(Cost $19,357,861) ------------
<CAPTION>
Due Bond Rating** Principal
Date Coupon Moody's/S&P Amount Value*
- ---- ------ ----------- ------ ------
<S> <C> <C> <C> <C>
CORPORATE BONDS - 57.68%
COMMUNICATIONS - 3.86%
AT&T Corp.
03/15/09 6.00% A1/AA- 250,000 245,216
New England Telephone & Telegraph Co.
10/15/07 7.375% Aa2/AA 100,000 100,972
New York Telephone Co.
02/15/04 6.250% A2/A+ 500,000 507,953
Southern New England Telephone Co.
12/15/03 6.125% Aa3/AA 700,000 710,371
Southwestern Bell Telephone Co.
06/01/03 5.875% Aa3/AA 145,000 142,546
06/01/08 6.750% Aa3/AA 300,000 302,474
------------
TOTAL COMMUNICATIONS 2,009,532
------------
ELECTRIC UTILITIES - 1.58%
Consolidated Edison Co.
02/01/02 6.625% A1/A+ 800,000 820,029
------------
TOTAL ELECTRIC UTILITIES 820,029
------------
<CAPTION>
Due Bond Rating** Principal
Date Coupon Moody's/S&P Amount Value*
- ---- ------ ------- ------ ------
<S> <C> <C> <C> <C>
FINANCIAL - 19.98%
AGRICULTURE - 0.82%
John Deere Capital Corp.
10/23/01 5.35% A2/A+ $ 430,000 $ 424,990
------------
AUTOMOBILE - 0.98%
Ford Motor Credit Co.
06/30/03 6.625% A1/A 500,000 510,783
------------
BANKS/S & L/FINANCE/LEASE - 8.78%
Bank of America Corp.
04/15/00 5.375% Aa2/A+ 700,000 699,821
05/12/05 7.125% Aa2/A+ 500,000 519,358
Bankers Trust New York Corp.
03/01/01 9.400% A3/BBB+ 350,000 367,965
01/15/02 7.500% A3/BBB+ 300,000 308,290
Citicorp
08/15/05 6.750% A1/A+ 700,000 716,337
First Bank System
10/15/03 6.000% A1/A 500,000 499,920
Heller Financial, Inc.
03/15/00 5.625% A3/A- 550,000 550,906
International Lease Finance Corp.
08/15/99 6.500% A1/A+ 700,000 702,335
NCNB Corp.
08/01/02 7.750% A2/A+ 200,000 200,164
------------
4,565,096
------------
BROKERS/FINANCIAL SERVICES - 6.99%
Associates Corp. of North America
03/15/00 6.000% Aa3/AA- 800,000 804,006
Bear Stearns Cos., Inc.
04/15/03 6.750% A2/A 750,000 762,515
Merrill Lynch & Co.
04/27/08 7.000% Aa3/AA- 700,000 723,715
Morgan Stanley Dean Witter & Co.
10/15/01 8.875% Aa3/A+ 400,000 428,691
03/01/03 6.875% Aa3/A+ 350,000 359,563
01/15/07 8.330% Aa3/A+ 500,000 555,950
------------
3,634,440
------------
</TABLE>
[LOGO]----------------------------------------------------------------------- 15
<PAGE>
ARISTATA FUNDS
- --------------------------------------------------------------------------------
ARISTATA QUALITY BOND FUND
STATEMENT OF INVESTMENTS
APRIL 30, 1999 (CONTINUED)
<TABLE>
<CAPTION>
Due Bond Rating** Principal
Date Coupon Moody's/S&P Amount Value*
- ---- ------ ----------- ------ ------
<S> <C> <C> <C> <C>
FINANCIAL (CONTINUED)
INSURANCE - 2.41%
Allstate Insurance Corp.
06/15/03 6.750% A1/A $ 550,000 $ 561,075
CNA Financial Corp.
11/15/03 6.250% A3/A- 700,000 689,067
------------
1,250,142
------------
TOTAL FINANCIAL 10,385,451
------------
INDUSTRIAL - 32.26%
AEROSPACE - 0.97%
Boeing Co.
06/15/03 6.350% A1/AA- 500,000 505,658
------------
AUTOMOBILE - 1.68%
Ford Motor Co.
09/15/01 9.000% A1/A 350,000 374,241
General Motors Corp.
05/01/05 6.250% A2/A 500,000 499,559
------------
873,800
------------
BROADCASTING/ENTERTAINMENT - 1.00%
Walt Disney Co.
03/30/06 6.750% A2/A 500,000 518,158
------------
BUILDING MATERIALS - 1.97%
Hanson Trust PLC
01/15/03 7.375% A3/A 300,000 313,309
Martin Marietta Corp.
04/15/03 6.500% Baa1/BBB+ 700,000 711,990
------------
1,025,299
------------
BUSINESS INFORMATION/SERVICES - 2.79%
WMX Technologies
11/15/99 8.250% Baa3/BBB+ 200,000 202,631
12/01/03 6.375% Baa3/BBB+ 500,000 502,766
Xerox Corp.
04/15/02 8.125% A2/A 700,000 744,199
------------
1,449,596
------------
CHEMICALS - 1.42%
E. I. duPont de Nemours & Co.
03/15/04 8.125% Aa3/AA- 200,000 218,593
ICI Wilmington, Inc.
01/15/02 7.500% Baa1/A- $ 500,000 $ 516,952
------------
735,545
------------
DRUGS - 0.80%
American Home Products Corp.
02/15/00 7.700% A2/A 200,000 203,663
Eli Lilly & Co.
12/01/01 8.125% Aa3/AA 200,000 212,431
------------
416,094
------------
FOOD/BEVERAGE - 2.56%
Archer Daniels Midland Co.
05/15/03 6.250% Aa3/AA- 700,000 706,924
Philip Morris Cos., Inc.
05/15/02 7.625% A2/A 600,000 625,914
------------
1,332,838
------------
HOTEL/RESORT - 1.13%
Carnival Corp.
04/15/08 6.150% A2/A 600,000 589,904
------------
HOUSEHOLD GOODS - 2.56%
Colgate Palmolive Co.
12/01/99 6.860% A1/A 700,000 706,996
Hasbro, Inc.
07/15/08 6.15% A2/A 300,000 298,730
Whirlpool Corp.
03/01/03 9.000% Baa1/BBB+ 300,000 324,329
------------
1,330,055
------------
INDUSTRIAL COMPONENTS - 0.97%
Ingersoll Rand Co.
08/07/00 6.540% A3/A- 500,000 504,896
------------
METALS - 2.52%
Alcan Aluminum Ltd.
04/01/00 5.875% A2/A- 700,000 704,711
11/01/08 6.250% A2/A- 630,000 607,365
------------
1,312,076
------------
OFFICE EQUIPMENT/E.D.P. - 2.76%
Honeywell, Inc.
08/16/99 7.460% A2/A 700,000 704,208
</TABLE>
16 -----------------------------------------------------------------------[LOGO]
<PAGE>
ARISTATA FUNDS
- --------------------------------------------------------------------------------
ARISTATA QUALITY BOND FUND
STATEMENT OF INVESTMENTS
APRIL 30, 1999 (CONTINUED)
<TABLE>
<CAPTION>
Due Bond Rating** Principal
Date Coupon Moody's/S&P Amount Value*
- ---- ------ ----------- ------ ------
<S> <C> <C> <C> <C>
OFFICE EQUIPMENT/E.D.P. (CONTINUED)
International Business Machines Corp.
11/01/02 7.250% A1/A+ $ 700,000 $ 731,238
------------
1,435,446
------------
OIL & GAS - 1.43%
British Petroleum Co.
05/15/02 7.875% Aa1/AA 700,000 741,963
------------
OIL FIELD SERVICES - 1.36%
Dresser Industries, Inc.
06/01/00 6.250% Aa3/AA- 700,000 705,142
------------
PACKAGED GOODS - 0.98%
Fortune Brands, Inc.
04/01/08 6.250% A2/A 500,000 508,418
------------
PAPER/PACKAGING - 1.58%
Avery Dennison Corp.
04/15/05 6.750% A2/A 800,000 819,466
------------
RESTAURANTS - 1.37%
McDonalds Corp.
09/01/05 6.625% Aa2/AA 700,000 713,164
------------
RETAIL - 2.41%
Dillard's, Inc.
06/01/06 7.375% Baa1/BBB 500,000 512,787
JC Penney, Inc.
11/15/03 6.125% A3/A 750,000 737,925
------------
1,250,712
------------
TOTAL INDUSTRIAL 16,768,230
------------
TOTAL CORPORATE BONDS 29,983,242
(Cost $29,209,197) ------------
<CAPTION>
Principal
Amount Value*
------ ------
<S> <C> <C>
SHORT-TERM INVESTMENTS - 1.67%
MUTUAL FUNDS - 1.67%
Fifth Third C/P Fund $ 678,593 $ 678,593
Fifth Third U.S. Treasury Fund 189,669 189,669
------------
TOTAL SHORT-TERM INVESTMENTS 868,262
(Cost $868,262) ------------
TOTAL INVESTMENTS 98.45% 51,176,184
(Cost $49,435,320)
Other Assets in Excess
of Liabilities 1.55% 804,040
---------------------------
NET ASSETS 100.00% $51,980,224
---------------------------
---------------------------
</TABLE>
*See note 1 to financial statements.
**Ratings - The Moody's and S&P ratings are believed to be the most recent
ratings at April 30, 1999. Ratings are not covered by the Report of Independent
Auditors.
[LOGO]----------------------------------------------------------------------- 17
<PAGE>
ARISTATA FUNDS
- --------------------------------------------------------------------------------
ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
STATEMENT OF INVESTMENTS
APRIL 30, 1999
<TABLE>
<CAPTION>
Due Bond Rating** Principal
Date Coupon Moody's/S&P Amount Value*
- ---- ------ ----------- ------ ------
<S> <C> <C> <C> <C>
COLORADO MUNICIPAL OBLIGATIONS - 95.12%
PREREFUNDED - 23.41%
Adams County, GO
School District #12, FGIC
12/15/07 7.300% Aaa/AAA $ 100,000 $ 106,065
Arapahoe County, GO
School District #5
12/15/10 7.125% Aa/AA 400,000 426,752
Colorado Springs Utilities, Rev
11/15/15 6.500% Aa2/AAA 15,000 16,337
Denver City & County
School District #1
Certificates of Participation
12/01/06 6.600% A/A 500,000 551,935
Fort Collins Storm Drainage, Rev
12/01/11 6.625% A1/NR 300,000 325,407
Greeley Water, GO
12/01/11 6.600% A1/AA- 400,000 430,080
Larimer County, GO
School District #R-1
12/15/11 7.000% NR/NR 250,000 264,193
Platte River Power Authority, Rev
06/01/18 5.750% Aaa/A+ 900,000 901,917
Regional Transportation District, Rev
Sales Tax, FGIC
11/01/04 7.000% Aaa/AAA 500,000 530,905
South Suburban, Rev
Park & Recreation District, FGIC
12/15/10 6.700% Aaa/AAA 500,000 544,070
------------
TOTAL PREREFUNDED 4,097,661
(Cost $3,623,216) ------------
GENERAL OBLIGATION BONDS - 39.71%
Adams County
School District #12, FGIC
12/15/09 5.250% Aaa/AAA 500,000 532,220
Adams County
School District #50
12/01/10 5.250% A1/AA- 500,000 521,570
Boulder County Library
10/01/06 5.900% Aa1/AA+ 300,000 317,805
<CAPTION>
Due Bond Rating** Principal
Date Coupon Moody's/S&P Amount Value*
- ---- ------ ----------- ------ ------
<S> <C> <C> <C> <C>
Boulder County Open Space
06/15/08 5.100% NR/AA $ 500,000 $ 526,110
Boulder Valley
School District #Re-2
10/15/08 6.250% A1/AA 500,000 528,965
City & County of Denver
School District #1, FGIC
12/01/19 5.000% Aaa/AAA 300,000 296,568
Douglas County
School District #Re-1, MBIA
12/15/03 5.650% Aaa/AAA 400,000 431,236
Fort Collins Water
12/01/02 6.000% Aa1/AA 200,000 215,448
Highlands Ranch
Metropolitan District #4
12/01/01 5.200% Aa1/AA+ 250,000 260,038
12/01/03 5.375% Aa1/AA+ 250,000 266,875
Morgan & Washington Counties
School District #Re-2J, FSA
12/01/01 5.600% Aaa/AAA 500,000 524,465
Morgan County
School District #Re-3, AMBAC
12/01/12 4.450% Aaa/AAA 175,000 170,259
12/01/18 4.800% Aaa/AAA 250,000 241,670
San Miguel County
School District #R-1, MBIA
12/01/06 5.200% Aaa/AAA 500,000 533,515
South Suburban Park &
Recreation District, FGIC
12/15/06 5.050% Aaa/AAA 500,000 523,880
Summit County
School District #Re-1, FGIC
12/01/07 5.250% Aaa/AAA 500,000 527,560
Thornton, FSA
12/01/07 5.150% Aaa/AAA 500,000 530,965
------------
TOTAL GENERAL OBLIGATION BONDS 6,949,149
(Cost $6,600,194) ------------
</TABLE>
18 -----------------------------------------------------------------------[LOGO]
<PAGE>
ARISTATA FUNDS
- --------------------------------------------------------------------------------
ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
STATEMENT OF INVESTMENTS
APRIL 30, 1999 (CONTINUED)
<TABLE>
<CAPTION>
Due Bond Rating** Principal
Date Coupon Moody's/S&P Amount Value*
- ---- ------ ----------- ------ ------
<S> <C> <C> <C> <C>
REVENUE BONDS - 32.00%
EDUCATION - 1.49%
Colorado State Colleges
Mesa State College, MBIA
05/15/03 5.000% Aaa/AAA $ 250,000 $ 261,327
------------
FINANCE - 8.51%
Aurora
Certificates of Participation
12/01/00 5.600% A/A 500,000 511,060
Douglas County, MBIA
Certificates of Participation
11/01/09 5.500% Aaa/AAA 500,000 544,545
El Paso County School District #38
Certificates of Participation
12/01/05 6.750% A1/NR 400,000 433,448
------------
1,489,053
------------
HOUSING - 1.71%
Colorado Housing Finance Authority
Single Family Housing
11/01/14 7.150% Aa1/AA+ 225,000 232,308
Colorado Housing Finance Authority
Multi-Family Housing
10/01/19 6.000% Aa2/AA+ 15,000 15,030
Commerce City
Single Family Housing
03/01/12 6.875% Aaa/NR 50,000 52,073
------------
299,411
------------
POWER - 1.81%
Adams County
Pollution Control, MBIA
04/01/08 5.625% Aaa/AAA 300,000 315,948
------------
SPECIAL TAX - 7.77%
Boulder Sales/Use Tax
08/15/02 5.350% Aa3/A+ 500,000 525,950
Broomfield Sales/Use Tax, AMBAC
06/01/05 6.000% Aaa/AAA 300,000 321,402
Douglas County Sales/Use Tax, MBIA
10/15/07 5.250% Aaa/AAA 300,000 318,408
Glenwood Springs Sales/Use Tax, MBIA
10/01/18 4.800% Aaa/AAA 200,000 194,768
------------
1,360,528
------------
<CAPTION>
Due Bond Rating** Principal
Date Coupon Moody's/S&P Amount Value*
- ---- ------ ----------- ------ ------
<S> <C> <C> <C> <C>
TRANSPORTATION - 1.51%
Arapahoe County
Highway E-470, MBIA
08/31/05 5.150% Aaa/AAA $ 250,000 $ 264,927
------------
UTILITY - 9.20%
Colorado Springs Utilities
11/15/15 6.500% Aa2/AA 235,000 254,000
Colorado Water Reservoir & Power
Development Authority, FGIC
11/01/06 6.550% Aaa/AAA 500,000 543,845
Colorado Water Reservoir & Power
Development Authority
09/01/07 5.250% Aaa/AAA 250,000 266,837
09/01/15 4.750% Aaa/AAA 125,000 123,177
Fountain Valley Authority
Water Treatment
12/01/07 5.200% Aa/AA 400,000 422,276
------------
1,610,135
------------
TOTAL REVENUE BONDS 5,601,329
(Cost $5,286,201) ------------
TOTAL COLORADO MUNICIPAL
OBLIGATIONS 16,648,139
(Cost $15,509,611) ------------
TOTAL INVESTMENTS 95.12% 16,648,139
(Cost $15,509,611)
Other Assets in Excess
of Liabilities 4.88% 853,699
---------------------------
NET ASSETS 100.00% $17,501,838
---------------------------
---------------------------
</TABLE>
*See Note 1 to financial statements
**Ratings - The Moody's and S&P ratings are believed to
be the most recent ratings at April 30, 1999. Ratings are not covered by the
Report of Independent Auditors.
The Aristata Colorado Quality Tax-Exempt Fund had the following insurance
concentration greater than 10% at April 30, 1999 (as a percentage of net
assets):
<TABLE>
<S> <C>
FGIC 20.6%
MBIA 16.4%
</TABLE>
[LOGO]----------------------------------------------------------------------- 19
<PAGE>
ARISTATA FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 1999
<TABLE>
<CAPTION>
COLORADO QUALITY
EQUITY QUALITY BOND TAX-EXEMPT
----------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (Cost - see below) $93,719,781 $51,176,184 $16,648,139
Cash 0 0 707,098
Dividends receivable 132,956 0 0
Interest receivable 5,843 953,117 336,742
Receivable for portfolio shares purchased 1,229 10,000 3,400
Receivable for securities sold 782,090 0 0
Organizational costs, net of accumulated amortization 29,675 20,163 7,390
Prepaid and other assets 6,940 3,928 939
----------------------------------------------------------
Total Assets 94,678,514 52,163,392 17,703,708
----------------------------------------------------------
LIABILITIES:
Payable for investments purchased 0 0 124,325
Payable for portfolio shares redeemed 179,364 97,132 0
Accrued investment advisory fee 58,822 19,493 407
Accrued administration fee 16,299 9,409 5,260
Dividends payable 31,436 52,723 64,149
Other payables 19,846 4,411 7,729
----------------------------------------------------------
Total Liabilities 305,767 183,168 201,870
----------------------------------------------------------
NET ASSETS $94,372,747 $51,980,224 $17,501,838
----------------------------------------------------------
----------------------------------------------------------
COST OF INVESTMENTS $56,158,481 $49,435,320 $15,509,611
----------------------------------------------------------
----------------------------------------------------------
COMPOSITION OF NET ASSETS:
Paid-in capital $45,440,170 $50,219,662 $16,210,634
Un (Over)-distributed net investment income (6,998) 19,640 (616)
Accumulated net realized gain on investments 11,378,275 58 153,292
Net unrealized appreciation in value of investments 37,561,300 1,740,864 1,138,528
----------------------------------------------------------
NET ASSETS $94,372,747 $51,980,224 $17,501,838
----------------------------------------------------------
----------------------------------------------------------
NET ASSET VALUE PER SHARE:
Net Assets $94,372,747 $51,980,224 $17,501,838
Shares of beneficial interest outstanding 8,498,194 5,261,666 1,770,322
Net asset value and redemption price per share $11.11 $9.88 $9.89
</TABLE>
See notes to financial statements.
20 -----------------------------------------------------------------------[LOGO]
<PAGE>
ARISTATA FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED APRIL 30, 1999
<TABLE>
<CAPTION>
COLORADO QUALITY
EQUITY QUALITY BOND TAX-EXEMPT
----------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 141,035 $ 3,781,591 $ 1,047,902
Dividends 2,070,015 0 0
----------------------------------------------------------
Total Income 2,211,050 3,781,591 1,047,902
----------------------------------------------------------
EXPENSES:
Investment advisory fee 798,166 280,373 98,950
Administration fee 188,187 112,149 60,328
Legal 13,834 2,549 3,542
Registration 15,847 11,371 3,185
Amortization of organization costs 7,703 4,936 1,626
Insurance 4,739 2,993 1,100
Other 9,834 10,125 10,163
----------------------------------------------------------
Total Expenses Before Waiver 1,038,310 424,496 178,894
Expenses waived by investment adviser (146,836) (60,012) (89,839)
----------------------------------------------------------
Net Expenses 891,474 364,484 89,055
----------------------------------------------------------
NET INVESTMENT INCOME 1,319,576 3,417,107 958,847
----------------------------------------------------------
Net realized gain on investments 11,378,470 45,793 323,738
Change in net unrealized appreciation/depreciation (4,767,687) (474,807) (207,450)
----------------------------------------------------------
Net gain (loss) on investments 6,610,783 (429,014) 116,288
----------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 7,930,359 $ 2,988,093 $ 1,075,135
----------------------------------------------------------
----------------------------------------------------------
</TABLE>
See notes to financial statements.
[LOGO]----------------------------------------------------------------------- 21
<PAGE>
ARISTATA FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EQUITY FUND
----------------------------------------------------------
For the For the Period
Year Ended March 2, 1998
April 30, 1999 to April 30, 1998
----------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 1,319,576 $ 140,401
Net realized gain on investments 11,378,470 1,236,247
Change in net unrealized appreciation/depreciation (4,767,687) 3,076,768
----------------------------------------------------------
Net increase in net assets from operations 7,930,359 4,453,416
----------------------------------------------------------
DISTRIBUTIONS:
From net investment income (1,335,710) (131,265)
From net realized gain (1,236,442) -
----------------------------------------------------------
Net decrease in net assets from distributions (2,572,152) (131,265)
----------------------------------------------------------
SHARE TRANSACTIONS (NOTE 2):
Proceeds from sale of shares 4,205,574 840,478
Proceeds from shares issued in connection
with commingled pool conversion (Note 6) 0 98,552,917
Reinvested dividends 1,905,608 95,278
Cost of shares redeemed (18,710,476) (2,196,990)
----------------------------------------------------------
Net increase (decrease) in net assets from
share transactions (12,599,294) 97,291,683
----------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS (7,241,087) 101,613,834
----------------------------------------------------------
NET ASSETS:
Beginning of period 101,613,834 0
----------------------------------------------------------
End of period* $94,372,747 $101,613,834
----------------------------------------------------------
----------------------------------------------------------
*Includes un (over)-distributed net
investment income of $ (6,998) $ 9,136
</TABLE>
See notes to financial statements.
22 -----------------------------------------------------------------------[LOGO]
<PAGE>
ARISTATA FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
QUALITY BOND FUND
----------------------------------------------------------
For the For the Period
Year Ended March 2, 1998
April 30, 1999 to April 30, 1998
----------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 3,417,107 $ 565,950
Net realized gain on investments 45,793 51,177
Change in net unrealized appreciation/depreciation (474,807) (210,020)
----------------------------------------------------------
Net increase in net assets from operations 2,988,093 407,107
----------------------------------------------------------
DISTRIBUTIONS:
From net investment income (3,397,538) (565,879)
From net realized gain (96,912) -
----------------------------------------------------------
Net decrease in net assets from distributions (3,494,450) (565,879)
----------------------------------------------------------
SHARE TRANSACTIONS (NOTE 2):
Proceeds from sale of shares 6,356,700 1,700,477
Proceeds from shares issued in connection
with commingled pool conversion (Note 6) 0 57,599,038
Reinvested dividends 2,771,436 432,179
Cost of shares redeemed (14,151,265) (2,063,212)
----------------------------------------------------------
Net increase (decrease) in net assets from
share transactions (5,023,129) 57,668,482
----------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS (5,529,486) 57,509,710
----------------------------------------------------------
NET ASSETS:
Beginning of period 57,509,710 0
----------------------------------------------------------
End of period* $51,980,224 $57,509,710
----------------------------------------------------------
----------------------------------------------------------
*Includes undistributed net investment income of $ 19,640 $ 71
</TABLE>
See notes to financial statements.
[LOGO]----------------------------------------------------------------------- 23
<PAGE>
ARISTATA FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
COLORADO QUALITY TAX-EXEMPT FUND
----------------------------------------------------------
For the For the Period
Year Ended March 2, 1998
April 30, 1999 to April 30, 1998
----------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 958,847 $ 196,431
Net realized gain (loss) on investments 323,738 (4,213)
Change in net unrealized appreciation/depreciation (207,450) (124,231)
----------------------------------------------------------
Net increase in net assets from operations 1,075,135 67,987
----------------------------------------------------------
DISTRIBUTIONS:
From net investment income (959,483) (196,411)
From net realized gain (166,233) -
----------------------------------------------------------
Net decrease in net assets from distributions (1,125,716) (196,411)
----------------------------------------------------------
SHARE TRANSACTIONS (NOTE 2):
Proceeds from sale of shares 710,520 270,455
Proceeds from shares issued in connection
with commingled pool conversion (Note 6) 0 24,728,848
Reinvested dividends 118,629 2,973
Cost of shares redeemed (6,657,337) (1,493,245)
----------------------------------------------------------
Net increase (decrease) in net assets from
share transactions (5,828,188) 23,509,031
----------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS (5,878,769) 23,380,607
----------------------------------------------------------
NET ASSETS:
Beginning of period 23,380,607 0
----------------------------------------------------------
End of period* $17,501,838 $23,380,607
----------------------------------------------------------
----------------------------------------------------------
*Includes un(over)-distributed net investment income of $ (616) $ 20
</TABLE>
See notes to financial statements.
24 -----------------------------------------------------------------------[LOGO]
<PAGE>
ARISTATA FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<TABLE>
<CAPTION>
EQUITY FUND
----------------------------------------------------------
For the For the Period
Year Ended March 2, 1998
April 30, 1999 to April 30, 1998
----------------------------------------------------------
<S> <C> <C>
SELECTED PER-SHARE DATA:
Net asset value - beginning of period $10.44 $10.00
----------------------------------------------------------
Income from investment operations:
Net investment income 0.14 0.01
Net realized and unrealized gain on investments 0.81 0.44
----------------------------------------------------------
Total income from investment operations 0.95 0.45
----------------------------------------------------------
Distributions:
From net investment income (0.14) (0.01)
From net realized gain (0.14) -
----------------------------------------------------------
Total distributions (0.28) (0.01)
----------------------------------------------------------
Net asset value - end of period $11.11 $10.44
----------------------------------------------------------
----------------------------------------------------------
TOTAL RETURN 9.39% 4.54%
----------------------------------------------------------
----------------------------------------------------------
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000) $94,373 $101,614
----------------------------------------------------------
----------------------------------------------------------
Ratio of expenses to average net assets 0.95% 0.95%(1)
----------------------------------------------------------
----------------------------------------------------------
Ratio of net investment income to
average net assets 1.41% 0.84%(1)
----------------------------------------------------------
----------------------------------------------------------
Ratio of expenses to average net
assets without fee waivers 1.11% 1.17%(1)
----------------------------------------------------------
----------------------------------------------------------
Ratio of net investment income to
average net assets without fee waivers 1.25% 0.62%(1)
----------------------------------------------------------
----------------------------------------------------------
Portfolio turnover rate 25.26% 14.20%(1)
----------------------------------------------------------
----------------------------------------------------------
</TABLE>
(1) Annualized
See notes to financial statements.
[LOGO]----------------------------------------------------------------------- 25
<PAGE>
ARISTATA FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<TABLE>
<CAPTION>
QUALITY BOND FUND
----------------------------------------------------------
For the For the Period
Year Ended March 2, 1998
April 30, 1999 to April 30, 1998
----------------------------------------------------------
<S> <C> <C>
SELECTED PER-SHARE DATA:
Net asset value - beginning of period $9.97 $10.00
----------------------------------------------------------
Income from investment operations:
Net investment income 0.62 0.10
Net realized and unrealized loss on investments (0.08) (0.03)
----------------------------------------------------------
Total income from investment operations 0.54 0.07
----------------------------------------------------------
Distributions:
From net investment income (0.61) (0.10)
From net realized gain (0.02) -
----------------------------------------------------------
Total distributions (0.63) (0.10)
----------------------------------------------------------
Net asset value - end of period $9.88 $9.97
----------------------------------------------------------
----------------------------------------------------------
TOTAL RETURN 5.49% 0.69%
----------------------------------------------------------
----------------------------------------------------------
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000) $51,980 $57,510
----------------------------------------------------------
----------------------------------------------------------
Ratio of expenses to average net assets 0.65% 0.65%(1)
----------------------------------------------------------
----------------------------------------------------------
Ratio of net investment income to
average net assets 6.10% 6.00%(1)
----------------------------------------------------------
----------------------------------------------------------
Ratio of expenses to average net
assets without fee waivers 0.76% 0.83%(1)
----------------------------------------------------------
----------------------------------------------------------
Ratio of net investment income to
average net assets without fee waivers 5.99% 5.82%(1)
----------------------------------------------------------
----------------------------------------------------------
Portfolio turnover rate 9.79% 11.44%(1)
----------------------------------------------------------
----------------------------------------------------------
</TABLE>
(1) Annualized
See notes to financial statements.
26 -----------------------------------------------------------------------[LOGO]
<PAGE>
ARISTATA FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<TABLE>
<CAPTION>
COLORADO QUALITY TAX-EXEMPT FUND
----------------------------------------------------------
For the For the Period
Year Ended March 2, 1998
April 30, 1999 to April 30, 1998
----------------------------------------------------------
<S> <C> <C>
SELECTED PER-SHARE DATA:
Net asset value - beginning of period $9.94 $10.00
----------------------------------------------------------
Income from investment operations:
Net investment income 0.49 0.08
Net realized and unrealized loss on investments 0.04 (0.06)
----------------------------------------------------------
Total income from investment operations 0.53 0.02
----------------------------------------------------------
Distributions:
From net investment income (0.49) (0.08)
From net realized gain (0.09) -
----------------------------------------------------------
Total distributions (0.58) (0.08)
----------------------------------------------------------
Net asset value - end of period $9.89 $9.94
----------------------------------------------------------
----------------------------------------------------------
TOTAL RETURN 5.40% 0.22%
----------------------------------------------------------
----------------------------------------------------------
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000) $17,502 $23,381
----------------------------------------------------------
----------------------------------------------------------
Ratio of expenses to average net assets 0.45% 0.45%(1)
----------------------------------------------------------
----------------------------------------------------------
Ratio of net investment income to
average net assets 4.85% 5.00%(1)
----------------------------------------------------------
----------------------------------------------------------
Ratio of expenses to average net
assets without fee waivers 0.91% 0.92%(1)
----------------------------------------------------------
----------------------------------------------------------
Ratio of net investment income to
average net assets without fee waivers 4.40% 4.53%(1)
----------------------------------------------------------
----------------------------------------------------------
Portfolio turnover rate 7.86% 17.64%(1)
----------------------------------------------------------
----------------------------------------------------------
</TABLE>
(1) Annualized
See notes to financial statements.
[LOGO]----------------------------------------------------------------------- 27
<PAGE>
ARISTATA FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Financial Investors Trust, a Delaware business trust, is registered
under the Investment Company Act of 1940, as amended, as an open-end management
investment company. The financial statements included herein relate to the
Trust's Aristata Family of Funds. The Aristata Family of Funds includes the
Equity Fund, Quality Bond Fund and Colorado Quality Tax-Exempt Fund. The
financial statements of the remaining portfolios of the Trust are presented
separately.
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: Securities of the Funds are valued at 4:00 p.m.
(Eastern time) on each trading day. Listed and unlisted securities for which
such information is regularly reported are valued at the last sales price of the
day or, in the absence of sales, at values based on the average closing bid and
asked price. Securities for which market quotations are not readily available
are valued under procedures established by the Board of Trustees to determine
fair value in good faith. Short-term securities having a remaining maturity of
60 days or less are valued at amortized cost which approximates market value.
FEDERAL INCOME TAXES: It is the Funds' policy to comply with the
provisions of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of their taxable income to shareholders.
Therefore, no federal income tax provision is required.
DIVIDENDS: The Aristata Equity Fund will declare and pay dividends from
net investment income, if any, monthly. Dividends from net investment income are
declared daily and paid monthly for the Aristata Quality Bond and Colorado
Quality Tax-Exempt Funds. Dividends from net realized gains, if any, are
declared at least once a year. Dividends to shareholders are recorded on the
ex-dividend date.
ORGANIZATION COSTS: The Funds have deferred certain costs incurred in
connection with the organization, initial registration and public offering of
Fund shares. Such costs are being amortized over a 60 month period from the
commencement of operations. As of April 30, 1999, the remaining period of
amortization was 46 months.
OTHER: Investment transactions are accounted for on the date the
investments are purchased or sold (trade date). Dividend income is recorded on
the ex-dividend date. Interest income is accrued and recorded daily. Realized
gains and losses from investment transactions and unrealized appreciation and
depreciation of investments 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.
28 -----------------------------------------------------------------------[LOGO]
<PAGE>
ARISTATA FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2. SHARES OF BENEFICIAL INTEREST
On April 30, 1999, there was an unlimited number of no par value shares
of beneficial interest authorized. Transactions in shares of beneficial interest
for the period ended April 30 were as follows:
<TABLE>
<CAPTION>
ARISTATA COLORADO QUALITY
ARISTATA EQUITY FUND ARISTATA QUALITY BOND FUND TAX-EXEMPT FUND
-------------------- -------------------------- ---------------
For the Period Ended For the Period Ended For the Period Ended
1999 1998 1999 1998 1999 1998
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 421,685 81,457 632,574 170,061 71,070 26,994
Shares Issued in connection with
commingled pool conversion 0 9,855,292 0 5,759,904 0 2,472,885
Shares issued as reinvestment
of dividends 189,946 9,126 275,733 43,326 11,855 299
Shares redeemed (1,845,964) 213,348 (1,413,235) 206,697 (663,763) 149,018
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) (1,234,333) 9,732,527 (504,928) 5,766,594 (580,838) 2,351,160
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
<TABLE>
<CAPTION>
ARISTATA COLORADO QUALITY
ARISTATA EQUITY FUND ARISTATA QUALITY BOND FUND TAX-EXEMPT FUND
-------------------- -------------------------- ---------------
<S> <C> <C> <C>
As of April 30, 1999
Gross appreciation (excess of
value over cost) 38,488,959 1,993,607 1,150,059
Gross depreciation (excess of
cost over value) (927,659) (252,743) (11,531)
- -----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation 37,561,300 1,740,864 1,138,528
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
4. INVESTMENT ADVISORY FEES, ADMINISTRATION FEES AND OTHER RELATED PARTY
TRANSACTIONS
Tempest, Isenhart, Chafee, Lansdowne & Associates, Inc. (the "Adviser")
serves as investment adviser to each Fund pursuant to separate investment
advisory agreements (the "Advisory Agreements") with the Trust. For its
services, the Adviser is entitled to receive a fee, computed daily and payable
monthly, at the annual rate of 0.85%, 0.50% and 0.50% of the average net assets
for the Aristata Equity Fund, Aristata Quality Bond Fund and Aristata Colorado
Quality Tax-Exempt Fund, respectively. The Adviser has agreed to voluntarily
waive a portion of its fees so that the total annual expenses of each Fund will
not exceed the voluntary expense limitations adopted by the Adviser. Fee waivers
by the Adviser are voluntary and may be terminated at any time.
ALPS~Mutual Funds Services, Inc. ("ALPS") serves as the administrator to
each Fund. ALPS is entitled to receive a fee from each Fund, computed daily and
payable monthly, at the annual rate of .20% of the average net assets of each
Fund, subject to a minimum monthly fee of $15,000 for the Aristata Equity Fund,
$7,500 for the Aristata Quality Bond Fund and $5,000 for the Aristata Colorado
Quality Tax-Exempt Fund. In addition to administration services, the
administration fee also covers the costs of fund accounting, custody,
shareholder servicing, transfer agency, audit and Trustees' fees.
As of April 30, 1999, one shareholder owned 41 percent and 44 percent of
the outstanding shares of the Aristata Equity Fund and Aristata Quality Bond
Fund, respectively.
[LOGO]----------------------------------------------------------------------- 29
<PAGE>
ARISTATA FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from the sale of
securities, other than temporary cash investments, during the year ended April
30, 1999 were as follows:
<TABLE>
<CAPTION>
U.S. GOVERNMENT
SECURITIES ALL OTHER TOTAL
---------------------------------------------------------------
<S> <C> <C> <C>
ARISTATA EQUITY FUND
Purchases $ 0 $22,870,147 $22,870,147
Sales $ 0 $34,921,420 $34,921,420
ARISTATA QUALITY BOND FUND
Purchases $ 4,649,375 $ 1,705,868 $ 6,355,243
Sales $ 2,300,000 $ 2,691,283 $ 4,991,283
ARISTATA COLORADO QUALITY
TAX-EXEMPT FUND
Purchases $ 0 $ 1,505,689 $ 1,505,689
Sales $ 0 $ 7,717,015 $ 7,717,015
</TABLE>
6. CONVERSION OF COMMINGLED POOLS
Each Fund, at its inception date (March 2, 1998), issued shares at
$10.00 per share in a tax-free conversion to acquire the net assets of certain
unregistered commingled pools of Colorado State Bank and Trust. The following is
a summary of shares issued, net assets acquired and unrealized appreciation as
of March 2, 1998:
<TABLE>
<CAPTION>
ARISTATA COLORADO QUALITY
ARISTATA EQUITY FUND ARISTATA QUALITY BOND FUND TAX-EXEMPT FUND
-------------------- -------------------------- ---------------
<S> <C> <C> <C>
Shares issued 9,855,292 5,759,904 2,472,885
Net assets acquired $98,552,917 $57,599,038 $24,728,848
Unrealized appreciation $39,252,218 $2,425,692 $1,470,209
</TABLE>
7. SHAREHOLDER TAX INFORMATION (Unaudited)
During the period ended April 30, 1999, 99% of the dividends paid by the
Aristata Colorado Quality Tax-Exempt Fund from net investment income should be
treated as tax-exempt dividends and 100% of the dividends paid by the Aristata
Equity Fund from net investment income qualify for the corporate dividends
received deduction.
30 -----------------------------------------------------------------------[LOGO]
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INTENTIONALLY
LEFT BLANK
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
[LOGO]----------------------------------------------------------------------- 31
<PAGE>
THESE FUNDS ARE NEITHER INSURED NOR GUARANTEED BY [LOGO]
THE U.S. GOVERNMENT, THE FDIC, THE FEDERAL RESERVE ARISTATA
BOARD OR ANY OTHER GOVERNMENTAL AGENCY OR INSURER. MUTUAL FUNDS
A CLASS ABOVE
INVESTMENT ADVISER
Tempest, Isenhart, Chafee, Lansdowne &
Associates, Inc.
1380 Lawrence Street
Suite 1050
Denver, CO 80204
ADMINISTRATOR, DISTRIBUTOR, TRANSFER AGENT
& FUND ACCOUNTANT
ALPS Mutual Funds Services, Inc.
370 Seventeenth Street
Suite 3100
Denver, CO 80202 ANNUAL REPORT
LEGAL COUNSEL APRIL 30, 1999
Davis, Graham & Stubbs LLP
370 Seventeenth Street
Suite 4700
Denver, CO 80202
INDEPENDENT AUDITORS
Deloitte & Touche LLP
555 Seventeenth Street
Suite 3600
Denver, Colorado 80202
CUSTODIAN
Fifth Third Bank, N.A. [PHOTO]
Fifth Third Center
38 Fountain Square Plaza
Cincinnati, Ohio 45263
MUST BE ACCOMPANIED OR PRECEDED BY A CURRENT
PROSPECTUS.
FOR MORE INFORMATION, PLEASE CALL 1-800-644-8595
ALPS MUTUAL FUND SERVICES
- -------------------------
SPONSOR AND DISTRIBUTOR
