<PAGE>
ANNUAL REPORT
April 30, 2000
[LOGO]
UNITED ASSOCIATION
S&P 500 INDEX FUND
<PAGE>
LETTER FROM THE GENERAL PRESIDENT OF THE UNITED ASSOCIATION
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Dear Fellow Shareholders:
On March 2, 2000 the United Association S&P 500 Index Fund was launched and
represents the first union-affiliated index mutual fund. The Fund's investment
goal is to approximate, before fund expenses, the investment results of the S&P
500 Index. The S&P 500 Index is made up of common stocks of 500 large, publicly
traded companies.
Your participation and the overall response to the UA S&P 500 Index Fund have
been impressive. In just these past few months, the Fund has grown enormously
with its UA pride. I find this remarkable level of participation very
gratifying. It shows that you, UA locals and other members are investors who
recognize a good opportunity when they see it. It also shows that you have
confidence in your union and the programs that are established for your benefit.
The following report is for the fiscal year-ended April 30, 2000. At that time
the UA S&P 500 Index Fund had $579.7 million in assets under management and it
showed no signs of slowing down. Hundreds of investors like you were among those
who requested information and applications. On www.uafund.com, the Fund's
website, over 68,000 hits were recorded during the first two months of
operation, as information was both viewed and downloaded online. This was
clearly a message to me and all UA General Officers that our membership was
eager for just such a program.
In the UA we are fortunate to have our own mutual fund that enables:
- MEMBERS AND OFFICERS TO GAIN EXPOSURE TO AN S&P 500 INDEX FUND
- MEMBERS AND OFFICERS TO INVEST FOR THE FUTURE WITH PRIDE
- PROXY VOTING RIGHTS TO BE GAINED
As you may be aware, the proxy voting rights are especially significant for our
members. The stocks held in the UA S&P 500 Index Fund provide proxy voting
rights that can be exercised on behalf of our members. The proxy voting process
is an increasingly significant way for the UA to express to these corporations
and their management the value of using skilled United Association tradespeople
for their construction, renovation and maintenance needs. Our proxy voting
opportunity guarantees that the United Association's voice will be heard in
boardrooms all across North America.
We have had many successes over the past three years in getting the attention of
corporate America through the exercise of our proxy voting rights. Virtually
every day, we are able to use our position as stockholders in major corporations
to get out the message that there is no substitute for a skilled United
Association tradesperson.
We have every right to do this, and in fact, it is our obligation as
stockholders to know how these corporations are operating because that has a
direct effect on the value of the stock we hold. Proxy voting enables us to meet
that obligation.
With the new UA S&P 500 Index Fund we will now bring that same oversight to the
companies in which we hold stocks through this fund.
1
<PAGE>
LETTER FROM THE GENERAL PRESIDENT OF THE UNITED ASSOCIATION (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
The rapid growth of investors making investments into the UA S&P 500 Index Fund
is proof positive that the United Association has enthusiastically embraced such
a unique opportunity.
For those of you who would like additional information on the UA S&P 500 Index
Fund, I urge you to call toll free 1-888-766-8043 or visit www.uafund.com. I
know that in recent months, the stock market has been somewhat unstable, but
stocks and stock mutual funds are considered long-term investments that have
historically had these fluctuations.
Thank you for your investment in the UA S&P 500 Index Fund and please help me
encourage others to invest with pride.
Sincerely,
/s/ Martin J. Maddaloni
Martin J. Maddaloni
General President of the United Association
Trustee of Financial Investors Trust
2
<PAGE>
FUND OVERVIEW
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
----------------------------------------------------------------------
INVESTMENT GOAL
----------------------------------------------------------------------
To approximate, before fund expenses, the investment results of the
S&P 500 Index.
----------------------------------------------------------------------
INCEPTION DATE
----------------------------------------------------------------------
Class I - March 2, 2000
Class II - March 28, 2000
----------------------------------------------------------------------
TICKER SYMBOL
----------------------------------------------------------------------
Class I - UASPX
Class II - Not available
----------------------------------------------------------------------
--------------------------------------------------------------------------------
MARKET COMMENTARY FOR MARCH & APRIL, 2000
--------------------------------------------------------------------------------
The stock market, as measured by the S&P 500 Index, generated an impressively
positive 9.78% rate of total return for the month of March. The exceptionally
strong performance for the month marked a dramatic rebound from the negative
performance of Year 2000's first two months, resulting in a positive 2.29% stock
market return on a year-to-date basis. Stock prices were extremely volatile
during the month, as record high levels for the technology heavy NASDAQ stock
index were achieved and dramatically lost. This volatility was caused by growing
concern with technology stock earnings and valuation parameters, coupled with
the fifth Federal Reserve initiated interest rate increase since June 1999.
However, continued robust economic growth, muted inflationary pressures, strong
productivity advances, and a growing sense that Mr. Greenspan and Company will
eventually be successful in cooling economic growth to less threatening levels,
served to fuel the stock market's March advance.
Conversely, the S&P 500 Index generated Year 2000's third month of negative
performance, posting a (3.01%) rate of total return for April. This negative
return materialized in one of the most volatile stock market environments in
recent history, as record setting advances and declines, often posted in a
single day, became commonplace. Driven by the conflicting implications of
impressively strong corporate profit growth, mind-boggling economic growth,
insatiable consumer spending, and powerful signs of inflation's untimely return,
the equity markets were swept by waves of panicked selling and bargain basement
buying. Market leading technology stocks were especially hard hit as the early
April collapse of the Microsoft antitrust settlement negotiations, coupled with
lingering profit and valuation concerns, served to fuel the fears of an already
nervous market for technology stocks.
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
------------------------------------------------------------
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
------------------------------------------------------------
<S> <C>
General Electric Co 4.0%
Cisco Systems Inc 3.7
Intel Corp 3.3
Microsoft Corp 2.8
Exxon Mobil Corp 2.1
Wal-Mart Stores Inc 1.9
Oracle Corp 1.7
International Business Machines 1.6
Citigroup Inc 1.6
Lucent Technologies Inc 1.5
------------------------------------------------------------
Top Ten 24.2%
------------------------------------------------------------
</TABLE>
The top 10 equity holdings are presented to illustrate examples
of the equity securities that the Fund has bought and may not be
representative of the Fund's current or future investments.
3
<PAGE>
FUND OVERVIEW (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
SECTOR DIVERSIFICATION (% OF COMMON STOCKS) - APRIL 30, 2000
--------------------------------------------------------------------------------
FUND S&P 500 INDEX
------------------------------------------------
<S> <C> <C>
Basic Materials ................ 2.4% 2.4%
Consumer - Cyclical ............ 7.2 7.2
Consumer - NonCyclical ......... 5.8 5.8
Consumer Services .............. 5.0 5.0
Commercial Services ............ 1.3 1.3
Energy ......................... 5.5 5.5
Financial ...................... 13.0 13.0
Health Care .................... 10.4 10.4
Industrials .................... 6.3 6.3
Technology ..................... 32.9 32.9
Telecommunications ............. 7.3 7.3
Transportation ................. 0.6 0.6
Utility ........................ 2.3 2.3
--------------------------------------------------------------------------------
</TABLE>
DEFINITION OF INDICES
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.
4
<PAGE>
INDEPENDENT AUDITOR'S REPORT
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
[LOGO]
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS,
FINANCIAL INVESTORS TRUST:
We have audited the accompanying statement of net assets of the United
Association S&P 500 Index Fund of Financial Investors Trust as of April 30,
2000, the related statement of operations and the statement of changes in net
assets and financial highlights for the period from March 2, 2000 to April 30,
2000. 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 audit.
We conducted our audit in accordance with auditing standards generally
accepted in the United States of America. 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, 2000, 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 audit provides
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
United Association S&P 500 Index Fund of Financial Investors Trust as of April
30, 2000, and the results of its operations, the changes in its net assets and
financial highlights for the period from March 2, 2000 to April 30, 2000, in
conformity with accounting principles generally accepted in the United States of
America.
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
Denver, Colorado
June 7, 2000
---------------
DELOITTE TOUCHE
TOHMATSU
INTERNATIONAL
---------------
5
<PAGE>
UNITED ASSOCIATION S&P 500 INDEX FUND
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
APRIL 30, 2000
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
COMMON STOCKS (95.7%): SHARES MARKET VALUE SHARES MARKET VALUE
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
General Electric Co 147,555 $23,203,024 McDonalds Corp 60,892 $2,321,508
Cisco Systems Inc 307,711 21,333,027 Enron Corp 32,185 2,242,892
Intel Corp 150,248 19,053,325 Compaq Computer Corp 76,418 2,235,226
Microsoft Corp* 233,943 16,317,524 E. I. du Pont de Nemours & Co 46,970 2,228,139
Exxon Mobil Corp 155,315 12,066,034 Sprint Corp 38,757 2,131,635
Wal-Mart Stores Inc 200,154 11,083,528 Mediaone Group Inc* 27,526 2,081,654
Oracle Corp* 126,481 10,110,575 CBS Corp* 34,292 2,014,655
International Business Machines 81,065 9,048,881 Honeywell International Inc 35,602 1,993,712
Citigroup Inc 151,627 9,012,330 Schlumberger LTD 24,729 1,893,314
Lucent Technologies Inc 143,378 8,916,319 Veritas Software Co* 17,626 1,890,664
American International Group 69,629 7,637,431 Nextel Comm Inc Cl A* 16,346 1,788,865
Pfizer Inc 174,103 7,334,089 Gillette Co 48,240 1,784,880
Nortel Networks Corp 64,760 7,334,070 Viacom Inc* 31,345 1,704,384
Merck & Co Inc 105,117 7,305,632 Merrill Lynch & Co 16,669 1,699,196
SBC Communications Inc* 153,418 6,721,626 Micron Technology* 12,141 1,690,634
AT&T Corp 143,700 6,708,994 Comcast Corp Special Ci A* 41,164 1,649,133
Sun Microsystems Inc* 70,351 6,467,895 Charles Schwab Corp 36,889 1,641,561
EMC Corp* 45,758 6,357,502 US West Inc 22,728 1,617,950
America Online Inc* 102,776 6,147,289 Bank One Corp 51,579 1,573,159
Hewlett-Packard Co 45,002 6,075,270 Boeing Co 39,521 1,568,490
Texas Instruments Inc 36,117 5,882,556 Minnesota Mining & Mfg Co 18,038 1,560,287
Home Depot Inc 103,547 5,805,104 Automatic Data Processing Inc 28,140 1,514,284
MCI Worldcom Inc* 127,645 5,799,870 Colgate Palmolive Co 26,197 1,496,504
Dell Computer Corp* 114,413 5,734,952 Anheuser Busch Co 20,925 1,476,520
Royal Dutch Petroleum Co ADR 96,434 5,532,901 Fleetboston Financial Corp 41,174 1,459,104
Coca Cola Co 111,084 5,227,891 Computer Associates Intl Inc 26,112 1,457,376
Time Warner Inc 57,855 5,203,334 Electronic Data Systems Corp 21,168 1,455,300
Johnson & Johnson 62,539 5,159,468 Federal Home Loan Mtg Corp 31,268 1,436,374
Bristol-Myers Squibb Co 89,210 4,677,949 Kimberly Clark Corp 24,545 1,425,144
Warner-Lambert 38,611 4,394,414 First Union Corp 44,427 1,416,111
Bell Atlantic Corp 69,835 4,137,724 GAP Stores Inc 38,474 1,413,919
Bellsouth Corp 84,648 4,121,299 The Bank of New York Co, Inc 33,115 1,359,785
Walt Disney Co 92,792 4,019,053 United Technologies Corp 21,512 1,337,778
Morgan Stanley Dean Witter 50,243 3,856,150 Target Corp 19,803 1,318,137
Motorola Inc 31,891 3,797,022 Walgreen Co 45,151 1,269,872
Eli Lilly & Co 49,038 3,791,250 Solectron Corp* 26,387 1,235,241
Bank of America Corp 76,776 3,762,024 Texaco Inc 24,890 1,232,055
Qualcomm Inc* 33,121 3,591,558 Analog Devices Inc* 15,702 1,206,110
Procter & Gamble Inc 59,105 3,524,136 Marsh & McLennan Cos, Inc 12,002 1,182,947
Applied Materials Inc* 34,553 3,517,927 Unilever N.V. ADR 25,708 1,171,321
Tyco Intl Ltd 75,954 3,489,137 Dow Chemical Co 9,866 1,114,858
American Home Products Corp 58,725 3,299,611 Firstar Corp 44,078 1,096,440
Yahoo! Inc* 23,677 3,083,929 Clear Channel Comm Inc* 15,222 1,095,984
Wells Fargo & Co 73,912 3,035,012 Global Crossing Ltd* 34,254 1,079,001
American Express Co 20,137 3,021,809 Costco Wholesale Corp* 19,947 1,078,385
Ford Motor Company 54,324 2,970,844 Emerson Electric Co 19,523 1,071,325
GTE Corp 43,702 2,960,810 Alcoa Inc 16,484 1,069,399
Pharmacia Corp 56,281 2,810,532 Seagram Co, Ltd 19,493 1,052,622
Medtronic Inc 53,751 2,791,693 Xilinx Inc* 14,356 1,051,577
Fannie Mae 46,101 2,780,467 Safeway Inc* 22,883 1,009,712
General Motors Corp 28,788 2,695,276 J. P. Morgan & Co, Inc 7,785 999,399
Chase Manhattan Corp 37,088 2,672,654 Network Appliance Inc* 13,466 995,642
Schering-Plough Corp 66,065 2,663,245 Tellabs Inc* 18,095 991,832
Abbott Laboratories 69,133 2,657,300 Altera Corp* 9,579 979,453
Amgen Inc* 45,943 2,572,808 MBNA Corp* 36,059 957,817
Chevron Corp 29,516 2,512,549 Duke Energy Corp 16,444 945,530
Sprint Corp* 39,190 2,410,185 ALLTEL Corp 14,124 941,011
PepsiCo Inc 65,462 2,401,637 First Data Corp 18,848 917,662
Corning Inc 11,906 2,351,435 Apple Computer Inc* 7,243 898,585
Philip Morris Cos, Inc 106,410 2,327,719 Household International Inc 21,144 882,762
---------------------------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
UNITED ASSOCIATION S&P 500 INDEX FUND
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 2000
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED) SHARES MARKET VALUE SHARES MARKET VALUE
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Halliburton Co 19,866 $877,829 Phillips Petroleum Co 11,392 $540,408
Fifth Third Bancorp 13,877 875,986 Conexant Systems Inc* 9,016 539,833
Illinois Tool Works Inc 13,517 865,933 Circuit City Store Inc 9,132 537,076
Allstate Corp 36,217 855,627 General Dynamics Corp 9,040 528,840
Baxter Intl Inc* 13,083 852,030 Dominion Resources Inc 11,617 522,765
Lowe's Companies Inc 17,186 850,707 Hartford Fncl Srvcs Group Inc 9,967 520,153
Teradyne Inc* 7,690 845,900 Interpublic Group of Cos, Inc 12,614 517,174
LSI Logic Corp* 13,378 836,125 BMC Software Inc* 10,908 510,631
AES Corp* 9,282 834,800 UnitedHealth Group Inc 7,631 508,892
ADC Telecommunications Inc* 13,457 817,513 FedEx Corp* 13,372 503,957
Gannett Inc 12,539 800,929 Chubb Corp 7,912 503,401
Guidant Corp* 13,844 794,299 Campbell Soup Co 19,231 500,006
Eastman Kodak Co 14,188 793,641 General Mills Inc 13,650 496,519
Xerox Corp 29,878 789,900 Burlington Nrthrn Santa Fe Corp 20,550 495,769
Gateway Inc* 14,234 786,429 Tandy Corp 8,691 495,387
CVS Corp 17,651 767,818 Boston Scientific Corp* 18,652 494,278
Southern CO 30,275 754,983 Cendant Corp* 31,946 493,166
Linear Technology Corp 13,061 746,110 Citrix Systems Inc* 8,061 492,225
Best Buy Inc* 9,230 745,322 Southwest Airlines Co 22,685 491,981
Mellon Financial Corp 22,879 734,988 Pitney Bowes Inc 11,931 487,680
Suntrust Bank Inc 14,389 730,242 Delphi Automotive Sys Corp 25,410 485,966
Williams Co Inc 19,550 729,459 Molex Inc 8,813 484,164
Omnicom Group Inc 7,981 726,770 Coastal Corp 9,602 481,900
Associates First Capital Corp 32,748 726,596 Seagate Technology Inc* 9,419 478,603
Columbia/HCA Healthcare Corp 25,335 720,464 Union Pacific Corp 11,181 471,000
Kohl's Corp* 14,628 702,144 Baker Hughes Inc 14,779 470,157
Conoco Inc 28,196 701,375 National Semiconductor Corp* 7,710 468,383
State Street Corp 7,199 697,403 National City Corp 27,374 465,358
Kroger Co* 37,433 694,850 Dover Corp 9,153 465,087
Cardinal Health Inc 12,609 694,283 McGraw-Hill Cos, Inc 8,820 463,050
Carnival Corp 27,750 690,281 Scientific Atlanta inc 7,080 460,643
International Paper Co 18,627 684,542 Avon Products Inc 10,895 452,142
Lexmark Intl Group Inc* 5,740 677,320 Masco Corp 20,099 450,971
US Bancorp 32,877 667,814 PG&E Corp 17,270 447,941
Washington Mutual Inc 25,959 663,577 Kellogg Co 18,235 445,618
CIGNA Corp 8,264 659,054 Lockheed Martin Corp 17,855 444,143
Adobe Systems Inc 5,396 652,579 Lehman Brothers Holdings Inc 5,398 442,973
Northern Trust Corp 10,014 642,148 Waste Management Inc 27,867 442,389
Caterpillar Inc 15,990 630,606 Transocean Sedco Forex Inc 9,335 438,745
Bestfoods 12,546 630,436 El Paso Energy Corp 10,271 436,517
Sears Roebuck & Co 16,993 622,369 Limited Inc 9,656 436,331
American General Corp 11,113 622,328 PPG Industries Inc 7,820 425,213
Albertson's Inc 19,048 620,250 Deere & Co 10,510 424,341
Sara Lee Corp 40,870 613,050 Texas Utilities Co 12,426 418,601
3Com Corp* 15,497 611,163 ConAgra Inc 22,144 417,968
Computer Sciences Corp* 7,493 611,148 BB&T Corp 15,624 415,989
KLA-Tencor Corp* 8,091 605,814 Tribune Co 10,681 415,224
Comverse Technology Inc* 6,770 603,799 Textron Inc 6,691 414,424
AFLAC Inc 11,966 584,090 May Department Stores Co 15,013 412,858
Paychex Inc 11,092 583,717 Coca Cola Enterprises Inc 19,111 407,303
Advanced Micro Devices Inc* 6,617 580,642 Staples Inc* 20,921 398,807
PNC Bank Corp 13,225 576,941 Quaker Oats Co 6,018 392,298
Wachovia Corp 9,111 571,146 Biogen Inc* 6,662 391,809
Weyerhaeuser Co 10,565 564,567 Clorox Co 10,635 390,836
Providian Financial Group 6,386 562,367 Unicom Corp 9,787 389,033
Sysco Corp 14,815 557,414 Capital One Financial Corp 8,873 388,194
PE Corp - PE Biosystems Group 9,273 556,380 Aetna Inc 6,692 387,300
H. J. Heinz Co 16,101 547,434 Burlington Resources Inc 9,784 384,633
NIKE Inc Cl B 12,567 545,879 Wrigley (Wm) Jr Co 5,201 376,422
Harley Davidson Inc 13,642 543,122 KeyCorp 20,152 372,812
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
UNITED ASSOCIATION S&P 500 INDEX FUND
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 2000
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED) SHARES MARKET VALUE SHARES MARKET VALUE
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Danaher Corp 6,398 $365,486 Ralston Purina Co 13,881 $245,520
Franklin Resources Inc 11,320 365,070 Johnson Controls Inc 3,847 243,563
FPL Group Inc 8,061 364,256 IMS Health Inc 13,847 236,264
St. Paul Cos, Inc 10,217 363,981 Tricon Global Restaurants Inc* 6,912 235,872
Marriott Intl Inc 11,190 358,080 Parker-Hannifin Corp 5,046 234,639
Tenet Healthcare Corp 14,006 357,153 Synovus Financial Corp 12,578 233,479
Kansas City Southern Ind Inc 4,967 357,003 Fort James Corp 9,733 232,984
Union Carbide Corp 6,020 355,180 Mattel Inc 18,922 231,795
Occidental Petroleum Corp 16,531 354,383 Bed Bath & Beyond Inc* 6,271 230,067
Reliant Energy Inc 13,298 354,059 Columbia Energy Group 3,654 229,288
Public Svc Enterprise Group, Inc 9,829 352,615 Sabre Holdings Corp 6,559 229,171
Unocal Corp 10,902 352,271 Ecolab Inc 5,856 228,750
Rohm & Haas Co 9,840 350,550 Bear Stearns Co 5,325 228,309
Consolidated Edison Inc 9,946 349,975 AMR Corp 6,666 227,061
Peco Energy Co 8,357 348,382 MGIC Investment Corp 4,748 227,014
Allergan Inc 5,916 348,305 Ameren Corp 6,168 226,289
Ingersoll-Rand Co 7,360 345,460 Dana Corp 7,398 224,714
Raytheon Co 15,218 337,649 SLM Holding Corp 7,154 224,010
Rockwell International Corp 8,551 336,696 Constellation Energy Corp 6,720 222,180
Avery Dennison Corp 5,071 332,784 MBIA Inc 4,486 221,777
USX-Marathon Group 13,975 325,792 Northrop Grumman Corp 3,125 221,484
Unisys Corp* 13,946 323,373 Union Pacific Resources Group 11,387 218,488
Alcan Aluminum Ltd 9,850 322,587 Whirlpool Corp 3,347 217,973
Federated Dept Stores Inc* 9,440 320,960 Dun & Bradstreet Corp 7,232 217,864
Newell Rubbermaid Inc 12,710 320,133 Florida Progress Corp 4,414 216,286
American Electric Power Inc 8,740 320,103 Progressive Corp 3,299 215,878
Air Products & Chemicals Inc 10,305 320,099 Kerr-McGee Corp 4,160 215,280
TRW Inc 5,468 319,878 McKesson HBOC Inc 12,657 213,587
Praxair Inc 7,150 317,728 DTE Energy Co 6,526 212,911
New York Times Co 7,699 317,103 Wellpoint Health Networks Inc* 2,865 211,294
Delta Air Lines Inc 5,950 313,862 Genuine Parts Co 7,997 209,921
Jefferson Pilot Corp 4,711 313,576 Sealed Air Corp* 3,751 208,649
Aon Corp 11,568 313,059 Tosco Corp 6,474 207,573
Lincoln National Corp 8,794 306,141 Central & South West Corp 9,567 207,484
Norfolk Southern Corp 17,126 301,846 CSX Corp 9,817 205,543
Barrick Gold Corp 17,729 298,069 T Rowe Price & Associates Inc 5,383 205,227
Comerica Inc 7,030 297,896 Compuware Corp* 16,106 202,332
Edison International 15,615 297,661 ALZA Corp* 4,589 202,203
Cincinnati Financial Corp 7,383 297,627 Regions Financial Corp 9,834 200,982
Novell Inc* 14,942 293,237 Summit Bancorp 7,856 199,346
Becton Dickinson & Co 11,284 289,153 Vulcan Materials Co 4,499 197,112
Champion International Corp 4,328 284,566 Goodyear Tire & Rubber Co 7,028 194,148
Georgia Pacific Group 7,692 282,681 Watson Pharmaceuticals Inc* 4,318 194,040
Hershey Foods Corp 6,226 282,505 Cinergy Corp 7,174 191,904
Entergy Corp 11,105 282,483 Willamette Industries Inc 5,016 191,549
PaineWebber Group Inc 6,413 281,370 Reynolds Metals Co 2,841 188,927
Eaton Corp 3,302 277,368 Nabisco Group Holdings Corp 14,667 188,838
Dollar General Corp 11,954 273,448 Leggett & Platt Inc 8,829 188,720
Archer Daniels Midland Co 27,351 271,801 Huntington Bancshares Inc 10,324 188,413
TJX Companies Inc 13,945 267,570 Cabletron Systems Inc* 8,133 186,042
FirstEnergy Corp 10,512 267,399 Sherwin Williams Co 7,460 185,568
Loew's Corp 4,772 263,057 Knight-Ridder Inc 3,778 185,358
Times Mirror Co 2,695 262,931 Fortune Brands Inc 7,378 184,450
Carolina Power & Light Co 7,174 262,299 H&R Block Inc 4,403 184,100
Dow Jones Inc 4,025 261,122 UnumProvident Corp 10,828 184,076
Amerada Hess Corp 4,082 259,717 Eastman Chemical Co 3,514 183,826
AmSouth Bancorporation 17,590 256,154 W. W. Grainger Inc 4,197 182,045
Anadarko Petroleum Corp 5,731 248,940 Biomet Inc 5,095 181,828
Apache Corp 5,125 248,242 Kmart Corp* 22,220 180,538
Golden West Financial Corp 7,262 247,816 Southtrust Corp 7,544 180,113
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
UNITED ASSOCIATION S&P 500 INDEX FUND
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 2000
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED) SHARES MARKET VALUE SHARES MARKET VALUE
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Union Planters Corp 6,337 $179,416 UST Inc 7,694 $115,410
Sempra Energy 9,577 177,773 Fluor Corp 3,418 114,717
Mirage Resorts Inc* 8,684 176,937 PerkinElmer Inc 2,087 114,263
Newmont Mining Corp 7,538 176,672 Rowan Cos Inc* 4,068 113,650
Young & Rubicam Inc 3,129 174,246 Winn-Dixie Stores Inc 6,703 111,018
Nordstrom Inc 6,215 172,855 Ashland Inc* 3,241 110,599
New Century Energies Inc 5,193 169,422 Darden Restaurants Inc 5,896 108,707
Nucor Corp 3,927 168,861 Andrew Corp 3,684 108,448
Phelps Dodge Corp 3,642 168,443 Autodesk Inc 2,743 105,263
Peoplesoft Inc* 12,074 168,281 Allegheny Technologies Inc 4,208 101,781
Paccar Inc 3,536 168,181 C. R. Bard Inc 2,301 100,237
NCR Corp* 4,344 167,787 Navistar Intl Corp* 2,854 99,890
Brown Forman Corp 3,075 167,780 USX-U.S. Steel Group 3,981 99,774
Toys R Us Inc* 10,979 167,430 Engelhard Corp 5,655 99,316
Black & Decker Corp 3,902 164,128 Parametric Technology Corp* 12,136 98,984
Intl Flavors & Fragrances Inc 4,725 162,717 CMS Energy Corp 5,206 98,914
J. C. Penney Co, Inc 11,677 161,289 Crown Cork & Seal Co, Inc 5,748 93,405
Mead Corp 4,622 160,903 Owens-Illinois Inc* 6,758 91,233
Old Kent Financial Corp 5,317 160,175 US Airways Group Inc* 3,209 89,250
The B. F. Goodrich Co 4,953 157,877 Bemis Inc 2,376 87,466
Office Depot Inc* 14,807 156,399 Adolph Coors Co Cl B 1,662 84,762
Bausch & Lomb Inc 2,588 156,250 Mallinckrodt Inc 3,130 84,119
GPU Inc 5,554 155,859 Boise Cascade Corp 2,571 83,718
Equifax Inc 6,364 155,520 Deluxe Corp 3,299 83,094
PPL Corporation 6,465 154,352 Crane Co 3,008 80,840
CenturyTel Inc 6,287 154,031 FMC Corp* 1,375 80,008
Northern States Power Co 6,959 151,793 Conseco Inc 14,707 79,969
V. F. Corp 5,312 150,064 Thomas & Betts Corp 2,589 79,774
Torchmark Corp 5,918 148,320 Brunswick Corp 4,125 79,148
AutoZone Inc* 6,457 148,107 Hercules Inc 4,783 74,435
Millipore Corp 2,036 145,956 Quintiles Transnational Corp* 5,169 73,981
Cooper Industries Inc 4,236 145,348 Eastern Enterprises 1,215 73,963
Ceridian Corp* 6,540 141,836 Nicor Inc 2,137 72,391
Hilton Hotels Corp 16,595 141,058 Freeport-McMoRan C&G Inc Cl B 7,357 70,811
Countrywide Credit Inds Inc 5,073 140,142 Snap-On Inc 2,658 70,271
Healthsouth Corp* 17,370 140,046 Homestake Mining Co 11,711 70,266
Westvaco Corp 4,506 139,123 Great Lakes Chemical Corp 2,588 69,714
Hasbro Inc 8,712 138,848 Dillard's Inc Cl A 4,844 67,513
Thermo Electron Corp* 7,166 138,841 Cummins Engine Inc 1,838 65,364
Inco Ltd* 8,631 134,859 Meredith Corp 2,339 65,053
Sigma Aldrich Corp 4,563 134,038 Louisiana-Pacific Corp 4,847 64,829
Pinnacle West Capital Corp 3,811 133,861 Centex Corp 2,679 64,631
Maytag Corp 3,796 130,725 Ryder Systems Inc 2,891 64,144
SuperValu Inc 6,272 129,752 Pactiv Corp* 7,730 63,289
Safeco Corp 5,848 129,387 Consolidated Stores Corp* 4,973 61,852
Temple Inland Inc 2,526 126,616 Silicon Graphics Inc* 8,365 60,123
Pall Corp 5,605 125,062 Alberto-Culver Co Cl B 2,537 59,937
ITT Industries Inc 3,952 124,735 Rite Aid Corp 11,704 58,520
Adaptec Inc* 4,600 124,200 Humana Inc* 7,558 58,102
Liz Claiborne Inc 2,661 123,238 Manor Care Inc* 4,637 55,354
Tektronix Inc 2,125 122,984 American Greetings Corp 2,896 52,490
Sunoco Inc 4,057 122,978 Allied Waste Industries Inc* 8,492 52,013
R. R. Donnelley & Sons Co 5,689 120,891 Timken Co 2,801 51,819
Wendy's Intl Inc 5,381 120,400 Potlatch Corp 1,308 51,584
Harcourt General Inc 3,215 120,161 Shared Medical Systems Corp 1,210 50,139
Stanley Works 4,039 119,151 Tupperware Corp 2,649 50,000
Placer Dome Inc 14,635 118,909 Peoples Energy Corp 1,602 49,762
Harrah's Entertainment Inc* 5,781 118,872 Worthingon Inds Inc 4,007 49,587
St Jude Medical Inc 3,807 118,731 Cooper Tire & Rubber Co 3,465 46,777
Niagara Mohawk Holdings Inc* 8,471 117,535 Owens Corning 2,467 44,869
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
UNITED ASSOCIATION S&P 500 INDEX FUND
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 2000
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED) SHARES MARKET VALUE SHARES MARKET VALUE
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Reebok International Ltd 2,548 $43,316 Jostens Inc 1,505 $37,155
Ball Corp 1,370 43,155 ONEOK Inc 1,419 35,830
W. R. Grace & Co* 3,276 42,588 Armstrong World Inds Inc 1,812 35,447
Pulte Corp 1,957 42,076 Springs Industries Inc Cl A 823 33,794
Kaufman & Broad Home Corp 2,140 41,195 Great Atlantic & Pacific Tea Co 1,737 31,809
Long's Drug Stores Corp 1,767 41,083 Bethlehem Steel Corp* 5,904 31,734
Briggs & Stratton Corp 1,057 40,562 Milacron Inc 1,702 31,062
Polaroid Corp 2,008 40,537 Russell Corp 1,528 29,987
National Service Inds Inc 1,858 39,947 McDermott International Inc 2,699 21,929
IKON Office Solutions Inc 6,611 38,840 NACCO Inds Inc Cl A 372 16,694
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL COMMON STOCKS $555,168,701
(Cost $541,194,724) -------------------------------
INVESTMENT COMPANIES (4.0%):
SPDR Trust 20,542 2,987,577
Goldman Sachs Financial Square Prime Fund 20,108,844 20,108,844
-------------------------------
TOTAL INVESTMENT COMPANIES 23,096,421
(Cost $23,016,445) -------------------------------
TOTAL INVESTMENTS (99.7%) 578,265,122
(Cost $564,211,169)
OTHER ASSETS AND LIABILITIES (.3%):
Other assets 1,513,975
Accrued investment advisory fee (7,248)
Accrued administration fee (51,106)
Other liabilities (3,629)
-------------------------------
1,451,992
-------------------------------
TOTAL NET ASSETS (100%) $579,717,114
-------------------------------
NET ASSETS:
Paid-in capital $564,968,885
Accumulated net realized loss on investments (31,538)
Accumulated net realized gain on futures 344,819
Net unrealized appreciation on investments 14,053,953
Net unrealized depreciation on futures (337,231)
Undistributed net investment income 718,226
-------------------------------
TOTAL NET ASSETS $579,717,114
-------------------------------
NET ASSET VALUE PER SHARE
Net Assets
Class I $579,314,107
Class II $ 403,007
Shares Outstanding
Class I 54,948,133
Class II 38,262
Net Asset Value Per Share
Class I $10.54
Class II $10.53
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
*NON-INCOME PRODUCING SECURITY
CL - CLASS
ADR - AMERICAN DEPOSITARY RECEIPT
10
<PAGE>
UNITED ASSOCIATION S&P 500 INDEX FUND
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE PERIOD MARCH 2, 2000 (INCEPTION) TO APRIL 30, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest $ 129,822
Dividends 683,337
------------------------------------------------------------------------
Total Income 813,159
------------------------------------------------------------------------
EXPENSES:
Investment advisory fee (Note 5) 7,248
Administration fee (Note 5) 84,027
Custody fee 3,624
12b-1 fee - Class II (Note 5) 13
Other 30
------------------------------------------------------------------------
Total Expenses 94,942
Waiver of expenses (Note 5) (9)
------------------------------------------------------------------------
Net Expenses 94,933
------------------------------------------------------------------------
NET INVESTMENT INCOME 718,226
------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized loss on investments (31,538)
Net realized gain on futures 344,819
Net change in unrealized appreciation on investments 14,053,953
Net change in unrealized depreciation on futures (337,231)
------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN 14,030,003
------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 14,748,229
------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
11
<PAGE>
UNITED ASSOCIATION S&P 500 INDEX FUND
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD MARCH 2, 2000 (INCEPTION) TO APRIL 30, 2000
<TABLE>
<S> <C>
INCREASE IN NET ASSETS:
OPERATIONS:
Net investment income $718,226
Net realized gain on investments and futures 313,281
Net change in unrealized appreciation/(depreciation) on
investments and futures 13,716,722
---------------
Net increase in net assets from operations 14,748,229
---------------
DISTRIBUTIONS 0
---------------
SHARE TRANSACTIONS (NOTE 2):
Proceeds from sale of shares 564,968,885
Reinvested dividends 0
Cost of shares redeemed 0
---------------
Net increase in net assets from share transactions 564,968,885
---------------
NET INCREASE IN NET ASSETS 579,717,114
---------------
NET ASSETS:
Beginning of period 0
---------------
End of period [includes undistributed net investment
income of $718,226] $579,717,114
---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
UNITED ASSOCIATION S&P 500 INDEX FUND
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
<TABLE>
<CAPTION>
CLASS I CLASS II
-------------------------------------------
For the Period For the Period
March 2, 2000 March 28, 2000
to April 30, 2000 to April 30, 2000
-------------------------------------------
<S> <C> <C>
SELECTED PER-SHARE DATA:
Net asset value - beginning of period $10.00 $11.05
-------------------------------------------
Income from investment operations:
Net investment income 0.01 0.00
Net realized and unrealized gain 0.53 (0.52)
-------------------------------------------
Total income from investment operations 0.54 (0.52)
-------------------------------------------
DISTRIBUTIONS 0.00 0.00
-------------------------------------------
Net asset value - end of period $10.54 $10.53
-------------------------------------------
TOTAL RETURN 5.40% (4.71%)
-------------------------------------------
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000) $579,314 $403
-------------------------------------------
Ratio of expenses to average net assets(1) .13% .15%
-------------------------------------------
Ratio of net investment income to average net assets(1) .97% .99%
-------------------------------------------
Ratio of expenses to average net assets without fee
waivers(1) N/A .21%
-------------------------------------------
Ratio of net investment income to average net
assets without fee waivers(1) N/A .93%
-------------------------------------------
Portfolio turnover rate(2) 2% 2%
-------------------------------------------
</TABLE>
(1) Annualized
(2) A portfolio turnover rate is, in general, the percentage computed by taking
the lesser of purchases or sales of portfolio securities (excluding securities
with a maturity date of one year or less at the time of acquisition) for a
period and dividing it by the monthly average of the market value of such
securities during the period. Purchases and sales of investment securities
(excluding short-term securities) for the period from March 2, 2000 to April 30,
2000 were $550,193,219 and $6,059,299, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
UNITED ASSOCIATION S&P 500 INDEX FUND
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Financial Investors Trust (the "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 United Association S&P 500 Index Fund (the "Fund"). The financial
statements of the remaining portfolios of the Trust are presented separately.
The Fund offers two classes of shares (Class I and Class II). Class I
and Class II are identical in all respects with the exception that Class II
shares charge a distribution fee and have a lower investment minimum. Each Class
of shares has equal rights as to earnings, assets and voting privileges except
that Class II has exclusive voting rights with respect to its Distribution Plan.
Income, expenses (other than expenses incurred under the Class II Distribution
Plan and other class specific expenses) and realized gains or losses on
investments are allocated to each Class based upon their relative net assets.
The following is a summary of significant accounting policies
consistently followed by the Fund in the preparation of its financial
statements. The policies are in conformity with generally accepted accounting
principles.
INVESTMENT VALUATION: Securities of the Fund 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 Fund's policy to comply with the
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 provision is required.
DIVIDENDS: The Fund will declare and pay dividends from net investment
income, if any, quarterly. Dividends from net realized gains, if any, are
declared at least once a year. Dividends to shareholders are recorded on the
ex-dividend date.
FUTURES CONTRACTS: The Fund uses index futures contracts with the
objective of maintaining full exposure to the stock market, maintaining
liquidity, and minimizing transaction costs. The Fund may purchase futures
contracts to immediately invest incoming cash or sell futures in response to
cash outflows, thereby simulating a fully invested position in the underlying
index while maintaining a cash balance for liquidity. Upon entering into a
futures contract, the Fund is required to deposit with the broker an amount
of cash or cash equivalents equal to a certain percentage of the contract
amount, known as the "initial margin". Subsequent payments ("variation
margin") are made or received by the Fund each day, depending on the daily
fluctuation of the value of the contract.
There are several risks in connection with the use of futures contracts
as a hedging device. The change in value of futures contracts primarily
corresponds with the value of their underlying instruments, which may not
correlate with the change in value of the stocks held by
14
<PAGE>
UNITED ASSOCIATION S&P 500 INDEX FUND
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
the Fund. In addition, there is the risk that the Fund may not be able to enter
into a closing transaction because of an illiquid secondary market.
Futures contracts are valued at their quoted daily settlement prices.
The aggregate principal amounts of the contracts are not recorded in the
financial statements. Fluctuations in the value of the contracts are recorded in
the Statement of Net Assets as an asset (liability) and in the Statement of
Operations as unrealized appreciation (depreciation) until the contracts are
closed, when they are recorded as realized futures gains (losses).
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 Fund uses 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 and disclosures in the financial
statements. Actual results could differ from these estimates.
2. SHARES OF BENEFICIAL INTEREST
On April 30, 2000, 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, 2000 were as follows:
<TABLE>
<CAPTION>
CLASS I AMOUNT SHARES
------- ------------------------------------
<S> <C> <C>
Shares sold $564,565,250 54,948,133
Shares redeemed 0 0
------------------------------------
Net increase $564,565,250 54,948,133
------------------------------------
CLASS II
--------
Shares sold $ 403,635 38,262
Shares redeemed 0 0
------------------------------------
Net increase $ 403,635 38,262
------------------------------------
</TABLE>
3. UNREALIZED APPRECIATION AND DEPRECIATION ON INVESTMENTS (TAX BASIS)
<TABLE>
<CAPTION>
As of April 30, 2000:
---------------------
<S> <C>
Gross appreciation (excess of value over tax cost) $ 40,543,393
Gross depreciation (excess of tax cost over value) (26,532,255)
----------------------
Net unrealized appreciation $ 14,011,138
----------------------
Cost of investments for income tax purposes $ 564,253,984
======================
</TABLE>
15
<PAGE>
UNITED ASSOCIATION S&P 500 INDEX FUND
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. FUTURES CONTRACTS
S&P 500 Index financial futures contracts open at April 30, 2000 were
as follows:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
NUMBER OF UNREALIZED
CONTRACTS EXPIRATION DATE COST DEPRECIATION
--------------------------------------------------------------------------------
<S> <C> <C> <C>
57 June 2000 $399 ($337,231)
--------------------------------------------------------------------------------
</TABLE>
5. INVESTMENT ADVISORY FEES, ADMINISTRATION FEES, DISTRIBUTION PLAN, AND OTHER
RELATED PARTY TRANSACTIONS
National City Investment Management Company (the "Adviser") serves as
investment adviser to the Fund pursuant to an investment advisory agreement (the
"Advisory Agreement") with the Trust. For its services, the Adviser is entitled
to receive a fee, computed daily and payable monthly, at the annual rate of .01%
of the Fund's average daily net assets up to $2,500,000,000 and .005% of the
Fund's average daily net assets in excess of $2,500,000,000.
ALPS Mutual Funds Services, Inc. ("ALPS") serves as the administrator
to the Fund. ALPS is entitled to receive a fee from the Fund, computed daily and
payable monthly, at the annual rate of .12% of the Fund's average daily net
assets up to $500,000,000, .085% of the Fund's average daily net assets
between $500,000,000 and $1,500,000,000, .06% of the Fund's average daily net
assets between $1,500,000,000 and $2,500,000,000, and .04% of the Fund's average
daily net assets in excess of $2,500,000,000. In addition to administration
services, the administration fee also covers the costs of fund accounting,
transfer agency, shareholder servicing, printing, registration, legal, audit and
Trustees' fees.
The Trustees have adopted a Distribution Plan on behalf of Class II of
the Fund pursuant to Rule 12b-1 under the Investment Company Act of 1940, as
amended. The Distribution Plan provides for payment of a fee to ALPS at the
annual rate of up to .10% of Class II's average daily net assets. ALPS has
contractually agreed to waive the 12b-1 fees that it is entitled to receive from
Class II to .035% for the Fund's first year of operation.
As of April 30, 2000, two shareholders owned 98.8% and one
shareholder owned 37.9% of the outstanding shares of Class I and Class II of the
Fund, respectively.
16
<PAGE>
================================================================================
INTENTIONALLY LEFT BLANK
================================================================================
17
<PAGE>
================================================================================
INTENTIONALLY LEFT BLANK
================================================================================
18
<PAGE>
UNITED ASSOCIATION S&P 500 INDEX FUND
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
THIS FUND IS NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT, THE FDIC,
THE FEDERAL RESERVE BOARD OR ANY OTHER GOVERNMENTAL AGENCY OR INSURER.
TOTAL RETURNS REFLECT REINVESTMENT OF ALL DIVIDENDS, CAPITAL GAINS DISTRIBUTIONS
AND ALL FEE WAIVERS. WITHOUT THE FEE WAIVERS, THE TOTAL RETURN FIGURES WOULD
HAVE BEEN LOWER. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. PRINCIPAL
VALUE MAY FLUCTUATE AND SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST.
INVESTMENT ADVISER
National City Investment Management Company
1900 East Ninth Street
Cleveland, Ohio 44114
ADMINISTRATOR, DISTRIBUTOR, TRANSFER AGENT & FUND ACCOUNTANT
ALPS Mutual Funds Services, Inc.
370 Seventeenth Street
Suite 3100
Denver, Colorado 80202
LEGAL COUNSEL
Davis, Graham & Stubbs LLP
370 Seventeenth Street
Suite 4700
Denver, Colorado 80202
INDEPENDENT AUDITORS
Deloitte & Touche LLP
555 Seventeenth Street
Suite 3600
Denver, Colorado 80202
CUSTODIAN
National City Bank
629 Euclid Avenue
Cleveland, Ohio 44114
MUST BE ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS. FOR MORE
INFORMATION, PLEASE CALL 1-888-766-8043.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
