<PAGE> 1
These Funds are neither insured nor guaranteed by the U.S. Government, the FDIC,
the Federal Reserve Board or any other governmental agency or insurer.
[ARISTATA MUTUAL FUNDS LOGO]
INVESTMENT ADVISER
Tempest Investment Counselors, 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
SEMI-ANNUAL REPORT
LEGAL COUNSEL
Davis, Graham & Stubbs LLP OCTOBER 31, 2000
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.
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
OR VISIT WWW.ARISTATA.COM
[ALPS MUTUAL FUNDS SERVICES LOGO]
SPONSOR AND DISTRIBUTOR
MEMBER NASD
<PAGE> 2
LETTER FROM THE INVESTMENT ADVISER
Dear Fellow Shareholders:
This is the first publication to use our firm's new name--TEMPEST INVESTMENT
COUNSELORS, INC. The firm's name was changed from Tempest, Isenhart, Chafee,
Lansdowne & Associates, Inc. for simplicity and also to ensure that anyone
seeing or hearing the firm's name could immediately associate us with our
business of investment management.
In addition to being more descriptive, the shorter name reflects what many
familiar with our firm actually have been calling us over our nearly 25 years in
business - Tempest. In fact, we too often have shortened it to "Tempest." Our
new name preserves our history and our commitment to continuity in managing
client assets.
As we celebrate our silver anniversary in 2001, that continuity will remain.
Other than the name change, all other aspects of the firm remain the same,
including our ownership, management and our role as the investment manager for
the Aristata Mutual Funds.
We hope you like the new name. Most important, we hope you continue to
appreciate what it stands for: progressive and disciplined value-oriented
investing.
We are pleased to report on the fiscal mid-year results and current investments
for the Aristata Mutual Funds as of October 31, 2000. All three Aristata Funds
achieved positive results for the semi-annual report period. The Aristata Equity
Fund turned in a positive 5.21% total return for the six months compared to a
decline of (1.07%) for the Standard and Poor's 500. The Aristata Quality Bond
Fund returned 4.67% and the Aristata Quality Colorado Fund returned 3.89%.
Fortunately, there was a continuation of positive rotation during the past two
quarters ended October 31, 2000 toward the so-called "value" oriented stocks and
high quality bonds, all to the benefit of the Aristata Mutual Fund investments.
However, the past several months have seen an increase in price volatility for
both the stock and bond markets. The NASDAQ stock market was the epicenter for
huge price swings, having declined (12.72%) during the past six months, and as
of October 31st is down 33% from its record high reached in March. The
volatility in security prices reflects investor uncertainty about the economy,
corporate profits, interest rates, and of course the Presidential election. The
bond markets have the same concerns particularly, lower quality bonds have
suffered sharp price declines of late due to slowing profit growth and rising
credit problems.
There is growing evidence that the gyrations in the stock market are triggered
by broad reassessment by investors as to what price they are willing to pay for
stocks. We share in the excitement generated by the onrush of new technology and
the communications revolution, but these expectations appear fully
1
<PAGE> 3
LETTER FROM THE INVESTMENT ADVISER
priced for many parts of the financial markets. The stock market hovers near
record valuation levels, and it along with the bond market have achieved
substantial, decade long returns. Jeremy Siegel a professor at the Wharton
School and author of "Stocks for the Long Run" said it best:
History has shown that whenever companies, no matter how great, get
priced above 50 to 60 times earnings, buyer beware ... A few stocks of
the nifty-50 era (the era of the early 1970s) subsequently outperformed
the market, but in that venerable group no stock that sold above a 50
price-to-earnings ratio was able to match the S&P 500 over the next
quarter century.
We think it is especially important today, to understand the risks that are
inherent in the investment markets. Many new technology and Internet related
sectors of the current stock market are priced substantially above the levels of
the nifty-50 era. This makes us extremely circumspect toward many of those stock
groups. Instead, the Aristata Funds--for both stock and bond investments--have
emphasized companies with demonstrated profitability and financial strength and
whose prospects are reasonably priced. History has shown and we agree investors
are well-served by a focus on the long-term, the adherence to disciplines of
proper diversification, and a diligence to buy stocks and bonds at reasonable
prices.
We are fond of using the "The Emperor is wearing no clothes!" metaphor to
describe high points in financial markets. When the pendulum of investor
psychology swings toward greed and the financial markets are pushed to lofty
levels there eventually follows the inevitable "sudden realization" of
nakedness. The April 2000 annual report we delivered to shareholders expressed
concern about the valuation in some sectors of the stock market. We said at that
time, "There is increasing recognition that the valuation disparity between tech
stocks and non-tech stocks cannot be ignored. The valuations are extremely
stretched for many NASDAQ companies." There is now an increasing awareness that
earnings prospects for many companies are simply too high and valuations are, in
many cases, far too rich. As we mentioned in April ... "the tremendous
productivity and efficiency promised by new technology must accrue to someone,
and that 'someone' is most often companies that have been ignored in recent
markets." The markets have not favored these non-technology companies that
should improve their operations and profitability by using technology. Our
research efforts continue to be directed toward these types of companies and we
believe they present attractive investment opportunities with less risk in
today's markets.
Value oriented, risk-averse disciplines, such as we employ as adviser to the
Aristata Funds, have been rewarding strategies this year. Our relative success
stems in part from rationality returning to the marketplace. It is a refreshing
breeze. We believe equity markets are once again rewarding investment rather
than speculation. Given the magnitude and duration that the pendulum moved the
other way, we are encouraged that what we are seeing today is more than just a
momentary change. We are excited about the many quality companies and profitable
industries that can be obtained at
2
<PAGE> 4
LETTER FROM THE INVESTMENT ADVISER
reasonable prices today. The financial markets have proven time and again that
the cyclical nature of human emotions does cause fear and greed to ebb and flow
in the marketplace. Sticking to long-term investment disciplines, employing
sound analysis, and avoiding the markets' emotional roller coaster are essential
ingredients for successful investing. These are the principles that guide us in
managing the Aristata Funds.
On behalf of the partners and our entire organization I want to thank you for
the trust and confidence you have placed with us as investment adviser to the
Aristata Funds. As investors along with you in these Funds, we pledge our best
efforts to providing long-term successful investment returns.
Sincerely,
/s/ H. DAVID LANSDOWNE
H. David Lansdowne, CFA
President
Tempest Investment Counselors, Inc.
3
<PAGE> 5
FUND REVIEW
ARISTATA EQUITY FUND
PERFORMANCE
The Aristata Equity Fund total return for the six-month period ending October
31, 2000 was 5.21%. The Standard & Poor's 500 index return was a negative
(1.07%) and the broader Value Line Composite Index had a negative (1.91%)
return. Net assets of the Fund as of October 31, 2000 were $69.0 million.
EQUITY MARKET OVERVIEW
Interest rates, energy prices and investor confidence are three important forces
influencing the U.S. stock market. After 6 increases in short-term interest
rates by the Federal Reserve (FED) over the last 18 months the intended goal to
slow U.S. growth appears to be working. The spike in energy prices is in many
ways a tax on consumers' incomes. Yes, the economy is less dependent upon energy
compared to past years, but in less than two years we have seen nearly a
tripling in oil costs. This higher cost is rippling through the economy, sapping
consumer spending power and slowing the economy.
Last year's required spending for Y2K issues fueled technology capital spending.
Now the pace of technology expenditures appears to be slowing, and investor
confidence has eroded for many technology companies. The sharp 33% decline in
the NASDAQ market (which is heavy in technology) from approximately 5000 in
March to the October 31st close of 3370 provides ample evidence of the ongoing
reassessment by investors.
The stock market is adjusting to signs that the U.S. economy is slowing. The
confluence of the above three forces is impacting corporate profits. The recent
news releases by a growing number of companies have revealed lower revenues and
profits than previously expected. The markets have not been very forgiving in
these instances, and we expect for various market sectors there will be further
downward adjustments for earnings.
PORTFOLIO UPDATE
ARISTATA EQUITY FUND
The current portfolio is invested in 60 companies and is diversified across
approximately 28 industries. As seen in the table below, energy related
investments comprise one of the portfolio's largest weightings. This
overweighting was also the case, when we communicated to you in April's annual
report. We continue to view the energy sector favorably. This positive view
seems to be shared
4
<PAGE> 6
FUND REVIEW
ARISTATA EQUITY FUND (CON'T.)
by the oil and gas industry, since several mergers and acquisitions have been
announced. The Fund's investment in Texaco benefited from Chevron's recent
announcement to acquire Texaco. Texaco is a long-term Fund holding, and today's
market value of $2.5 million represents more than a double over cost.
ARISTATA EQUITY FUND
SECTOR PROFILE
as of October 31, 2000
[PIE CHART]
<TABLE>
<S> <C>
Basic Materials 0.8%
Transportation 0.9%
Building/Real Estate 10.8%
Consumer Durables 1.9%
Consumer Staples 4.8%
Electric & Gas Utilities 8.1%
Energy 13.9%
Healthcare 13.9%
Industrial Products & Services 11.2%
Financial 10.1%
Technology 13.1%
Telecommunications 6.4%
Closed-End Funds 1.5%
Short-Term Investments 2.6%
</TABLE>
Comparison of Change in Value of $10,000 Investment in the Aristata Equity Fund,
the S&P 500, Value Line Composite, and the Lipper Multi-Cap Value.
[CHART]
<TABLE>
<CAPTION>
10/31/00
--------
<S> <C>
Aristata Equity Fund $12,298
S&P 500* $14,088
Value Line Composite $ 8,940
Lipper Multi-Cap Value $11,371
</TABLE>
*Fund benchmark index
PERFORMANCE
AS OF OCTOBER 31, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN(1) 1 YEAR SINCE INCEPTION
<S> <C> <C>
Aristata Equity 12.86% 8.06%
S&P 500 6.06% 13.72%
Value Line Composite 0.10% (4.11)%
Lipper Multi-Cap Value 9.85% 4.94%
</TABLE>
The total return figures represent past performance and are not indicative of
future results.
5
<PAGE> 7
FUND REVIEW
ARISTATA EQUITY FUND (CON'T.)
TEN LARGEST EQUITY HOLDINGS(3)
As of October 31, 2000
<TABLE>
<CAPTION>
INDUSTRY % OF DIVIDEND PRICE
COMPANY REPRESENTATION INVESTMENTS YIELD EARNINGS RATIO
------- -------------- ----------- ------- --------------
<S> <C> <C> <C> <C>
Texaco, Inc. Energy 3.6% 3.1% 11.7 x
AMGEN, Inc. Healthcare 3.5% 0.0% 56.0
Questar Corp. Electrical & Gas Utilities 3.3% 2.4% 18.0
United Healthcare Healthcare 3.3% 0.0% 25.6
IBM Technology 3.2% 0.5% 22.6
Bellsouth Corp. Telecommunications 3.0% 1.6% 20.7
Duke-Weeks Realty Corp. Building/Real Estate 2.9% 7.3% 9.3
Verizon Communications Telecommunications 2.9% 2.6% 19.6
Marsh & McLennan Cos., Inc. Financial 2.9% 1.5% 31.1
BP Amoco PLC Energy 2.8% 2.4% 13.5
TEN LARGEST HOLDINGS 31.4% 2.1% AVG. 22.8 X AVG.
</TABLE>
Diversification is an important strategy of the Fund in an effort to control the
risks with common stock investing. The top ten holdings represent 31.4% of the
total fund, and include investments in financial, technology,
telecommunications, healthcare/biotechnology, and real estate related areas.
The Fund enjoys attractive valuation measures when compared to richly valued
industries or to the market in general. The Fund's top 10 holdings sell at an
average price-to-earnings ratio of 22.8 which is below the Standard & Poor's 500
25 times earnings. Stocks held in the Fund have averaged a dividend yield of
2.0%.
We continue to seek quality companies that are reasonably priced for investment
in the Aristata Equity Fund.
6
<PAGE> 8
FUND REVIEW
ARISTATA QUALITY BOND FUND AND ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
PERFORMANCE
The Aristata Quality Bond Fund's total return for the six-month period ending
October 31, 2000 was 4.67%. The Lehman Brothers Government/Credit Bond Index and
the Lehman Brothers Intermediate Government/Credit Bond Index registered
comparable returns of 5.54% and 5.34% respectively. Net assets of the Aristata
Quality Bond Fund were $38.9 million as of October 31st. The Aristata Colorado
Quality Tax-Exempt Fund had net assets of $13.2 million for the same ending
period, while its 6 month total return was 3.89%. Comparable returns for the
Lipper Municipal Intermediate Bond Fund Index and the Lehman Brothers Municipal
Bond Index were 4.63% and 5.73% respectively.
FIXED INCOME MARKET REVIEW
During the past six months, recent economic data suggests that after nine years
of growth, the U.S. economy's record expansion is moderating. Capital spending
on technology has been one of the major driving forces during this past economic
expansion. During the most recent economic slowdown, several technology stocks
have declined prompting several investors to seek alternative investments into
fixed income.
Higher oil prices have yet to push up inflation in most other sectors of the
economy. Consumer confidence remains upbeat despite these rising oil prices.
Labor markets still remain extremely tight as the number of available workers
have hit a new cycle low. However, the Federal Reserve has maintained a
"tightening bias" towards short-term rates and continues to cite potential
inflation pressures.
Several issues have influenced the bond market and subsequently, the market's
volatility has increased. These issues include rising energy prices, the
heightened tension in the Middle East, and continuing equity earnings
disappointments.
ARISTATA QUALITY BOND FUND
QUALITY PROFILE(2)
AS OF OCTOBER 31, 2000
[PIE CHART]
<TABLE>
<S> <C>
Aaa 43%
Aa 18%
A 32%
Baa 7%
</TABLE>
7
<PAGE> 9
FUND REVIEW
ARISTATA QUALITY BOND FUND AND ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
(CON'T.)
PORTFOLIO UPDATE
ARISTATA QUALITY BOND FUND
Throughout the six-month period under review, corporate bond yield spreads have
widened relative to comparable yields of Treasury bonds. Disappointing corporate
earnings announcements and liquidity concerns have caused these yield spreads to
widen.
The corporate debt market has grown substantially in recent years as its
issuance has expanded to meet the capital needs of many companies. The recent
volatility in the market has caused many companies to come under pressure. The
burden of their excessive debt levels, coupled with their falling growth rates,
has accelerated this decline. High yield and lower quality bonds have been most
affected by the decline in prices and rise in yields.
Looking further ahead, an environment of steady growth is needed, and should
ultimately bode well for the corporate bond market. Long-term Treasury yields
fluctuated between yields of 5.65% and 6.25%, ending the six-month period at
5.80%.
The Fund's strategy continues to emphasize high quality, intermediate bonds. The
Fund's average maturity on October 31st was 6.4 years. The Fund held 56% in
corporate bonds and 39% in U.S. Government and agency obligations.
ARISTATA QUALITY BOND FUND
SECTOR PROFILE
as of October 31, 2000
[PIE CHART]
<TABLE>
<S> <C>
U.S. Government & Agency Obligations 38.6%
Communications 5.7%
Electric Utilities 2.7%
Financial 19.1%
Industrial 28.9%
Short-Term Investments 3.7%
Other 1.3%
</TABLE>
8
<PAGE> 10
FUND REVIEW
ARISTATA QUALITY BOND FUND AND ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
(CON'T.)
Comparison of Change in Value of $10,000 Investment in the Aristata Quality Bond
Fund, the Lehman Brothers Government/Credit Bond Index and the Lehman Brothers
Intermediate Government/Credit Bond Index.
[CHART]
<TABLE>
<CAPTION>
10/31/00
--------
<S> <C>
Aristata Quality Bond Fund $11,148
Lehman Brothers Gov't/Credit Bond Index* $11,412
Lehman Brothers Intermediate Gov't/Credit Bond Index $11,468
</TABLE>
*Fund benchmark index
PERFORMANCE
AS OF OCTOBER 31, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN(1) 1 YEAR SINCE INCEPTION
<S> <C> <C>
Aristata Quality Bond Fund 5.05% 4.16%
Lehman Bros. Gov't/Credit Bond Index 7.11% 5.08%
Lehman Bros. Inter. Gov't/Credit Bond Index 6.44% 5.27%
</TABLE>
The total return figures represent past performance and are not indicative of
future results.
9
<PAGE> 11
FUND REVIEW
ARISTATA QUALITY BOND FUND AND ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
(CON'T.)
PORTFOLIO UPDATE
ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
Municipal yields have remained fairly stable throughout the past few months. The
ability of the tax-exempt market to maintain such stability reflects an
increased demand from high net-worth investors. The supply of municipal bonds
should begin to pick up after the November elections as municipalities review
their issuance.
The Fund's average maturity on October 31st, was 8.1 years. Despite the overall
uncertainty in the bond and equity markets, we believe municipal bonds are an
attractive investment. Currently, a 5% tax-exempt yield equates to a taxable
equivalent yield of 8.28% for investors in the highest federal tax bracket.
While seeking to provide tax-free income to our shareholders, our strategy
continues to focus on the high quality sectors of the municipal market.
ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
SECTOR PROFILE
As of October 31, 2000
[PIE CHART]
<TABLE>
<S> <C>
Prerefunded Bonds 21.5%
General Obligation Bonds 38.7%
Revenue Bonds 34.8%
Other 5.0%
</TABLE>
ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
QUALITY PROFILE(2)
As of October 31, 2000
[PIE CHART]
<TABLE>
<S> <C>
Aaa 66%
A 18%
Aa 16%
</TABLE>
10
<PAGE> 12
FUND REVIEW
ARISTATA QUALITY BOND FUND AND ARISTATA COLORADO QUALITY
TAX-EXEMPT FUND (CON'T.)
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.
[CHART]
<TABLE>
<CAPTION>
10/31/00
--------
<S> <C>
Aristata Colorado Quality Tax-Exempt Fund $10,993
Lehman Brothers Municipal Bond Index* $11,163
Lipper Municipal Intermediate Bond Fund Index $10,947
</TABLE>
*Fund benchmark index
PERFORMANCE
AS OF OCTOBER 31, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN(1) 1 YEAR SINCE INCEPTION
<S> <C> <C>
Aristata Colorado Quality Tax-Free Exempt 5.56% 3.61%
Lehman Bros. Municipal Bond Index 8.51% 4.21%
Lipper Municipal Intermediate Bond Fund Index 6.44% 3.45%
</TABLE>
The total return figures represent past performance and are not indicative of
future results.
(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 rating from Moody's. For those
ratings not available from Moody's, S&P ratings were used.
(3) The ten largest 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.
The views expressed in this Adviser Update reflect the adviser's view only
through October 31, 2000. The Adviser's views are subject to change at any time
based on market and other conditions.
11
<PAGE> 13
FUND REVIEW
DEFINITION OF INDICES
The LEHMAN BROTHERS GOVERNMENT/CREDIT BOND INDEX and the LEHMAN BROTHERS
INTERMEDIATE GOVERNMENT/CREDIT BOND INDEX are unmanaged indices that are a
broad measure of bond performance that reflect 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 that 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 MULTI-CAP VALUE FUND INDEX is an unmanaged index of funds, that by
portfolio practice, invest in a variety of market capitalization ranges, without
concentrating 75% of their equity assets in any one market capitalization range
over an extended period of time. Multi-Cap Value funds seek long-term growth of
capital by investing in companies that are considered to be undervalued relative
to a major unmanaged stock index based on price-to-current earnings, book value,
asset value, or other factors. These funds will normally have a below-average
price-to-earnings ratio, price-to-book ratio, and three-year earnings growth
figure, compared to the U.S. diversified multi-cap funds universe average.
The LIPPER MUNICIPAL INTERMEDIATE BOND FUND INDEX is an unmanaged index that
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
return per the total return index 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.
12
<PAGE> 14
ARISTATA FUNDS
ARISTATA EQUITY FUND
STATEMENT OF INVESTMENTS
OCTOBER 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
Shares Value*
---------- ----------
<S> <C> <C>
COMMON STOCKS - 95.95%
BASIC MATERIALS - 0.85%
AGRICULTURE - 0.85%
Deere & Co. 16,000 $ 589,000
----------
TOTAL BASIC MATERIALS 589,000
----------
BUILDING/REAL ESTATE - 10.75%
BUILDING MATERIALS - 4.12%
Georgia Pacific Group 21,000 564,375
Lafarge Corp. 20,000 377,500
Vulcan Materials Co. 45,300 1,902,600
----------
2,844,475
----------
ENGINEERING/CONSTRUCTION - 2.18%
Jacobs Engineering Group, Inc.** 15,000 620,625
United Rentals, Inc.** 41,000 881,500
----------
1,502,125
----------
R.E.I.T./REAL ESTATE - 4.45%
Archstone Community Trust 45,000 1,060,312
Duke-Weeks Realty Corp. 85,000 2,013,438
----------
3,073,750
----------
TOTAL BUILDING/REAL ESTATE 7,420,350
----------
CONSUMER DURABLES - 1.94%
AUTOMOTIVE - 0.50%
Delphi Automotive Systems Corp. 22,000 345,125
----------
HOUSEHOLD GOODS - 1.44%
Eastman Kodak Co. 22,200 996,225
----------
TOTAL CONSUMER DURABLES 1,341,350
----------
CONSUMER STAPLES - 4.83%
FOOD/BEVERAGE - 1.38%
Earthgrains Co. 47,200 955,800
----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value*
---------- ----------
<S> <C> <C>
PACKAGED GOODS - 2.00%
Avon Products, Inc. 28,400 $1,377,400
----------
RETAIL - 1.45%
May Department Stores Co. 14,200 372,750
Target Corp. 22,800 629,850
----------
1,002,600
----------
TOTAL CONSUMER STAPLES 3,335,800
----------
ELECTRICAL & GAS UTILITIES - 8.11%
ELECTRIC UTILITIES - 4.78%
Duke Energy Corp. 20,800 1,797,900
Xcel Energy Inc. 58,590 1,497,707
----------
3,295,607
----------
GAS UTILITIES - 3.33%
Questar Corp. 85,000 2,300,312
----------
TOTAL ELECTRIC & GAS UTILITIES 5,595,919
----------
ENERGY - 13.92%
OIL FIELD SERVICES - 5.29%
Baker Hughes, Inc. 46,300 1,591,563
Halliburton Co. 28,400 1,052,575
Transocean Sedco Forex, Inc. 8,500 450,500
Veritas DGC, Inc.** 18,500 555,000
----------
3,649,638
----------
OIL & GAS - 8.63%
BP Amoco PLC 37,880 1,929,512
Royal Dutch Petroleum Co. 18,200 1,080,625
Texaco, Inc. 42,500 2,510,156
Tosco Corp. 15,100 432,238
----------
5,952,531
----------
TOTAL ENERGY 9,602,169
----------
</TABLE>
13
<PAGE> 15
ARISTATA FUNDS
ARISTATA EQUITY FUND
STATEMENT OF INVESTMENTS
OCTOBER 31, 2000 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Shares Value*
---------- ----------
<S> <C> <C>
FINANCIAL - 10.13%
BANKS/S & L/FINANCE/LEASE - 5.12%
First Union Corp. 23,000 $ 697,187
Morgan J.P. & Co., Inc. 7,600 1,257,800
PNC Bank Corp. 23,600 1,578,250
----------
3,533,237
----------
BROKERS/FINANCIAL SERVICES - 3.91%
Gallagher Arthur J & Co. 11,400 719,625
Marsh & McLennan Cos., Inc. 15,100 1,974,325
----------
2,693,950
----------
INSURANCE - 1.10%
Allstate Corp. 18,920 761,530
----------
TOTAL FINANCIAL 6,988,717
----------
HEALTHCARE - 13.86%
DRUGS - 7.41%
Abbott Laboratories 17,000 897,813
American Home Products Corp. 28,400 1,803,400
AMGEN, Inc.** 41,600 2,410,200
----------
5,111,413
----------
HEALTHCARE SERVICES - 3.30%
UnitedHealthcare 20,800 2,275,000
----------
MEDICAL PRODUCTS - 3.15%
Bausch & Lomb, Inc. 13,000 501,312
Cardinal Health, Inc. 11,400 1,080,150
Pall Corp. 27,600 595,125
----------
2,176,587
----------
TOTAL HEALTHCARE 9,563,000
----------
INDUSTRIAL PRODUCTS & SERVICES - 11.17%
AEROSPACE - 2.93%
AAR Corp. 35,000 417,813
Honeywell International, Inc. 15,000 807,188
Northrop Grumman Corp. 9,500 798,000
----------
2,023,001
----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value*
---------- ----------
<S> <C> <C>
BUSINESS INFORMATION - 1.60%
Maximus, Inc.** 22,000 $ 540,375
Robert Half International, Inc.** 18,400 561,200
----------
1,101,575
----------
ELECTRICAL PRODUCTS - 2.32%
Emerson Electric Co. 21,800 1,600,937
----------
INDUSTRIAL COMPONENTS - 4.32%
Ingersoll Rand Co. 37,800 1,426,950
Kennametal, Inc. 32,000 940,000
Snap On, Inc. 24,000 613,500
----------
2,980,450
----------
TOTAL INDUSTRIAL PRODUCTS
& SERVICES 7,705,963
----------
TECHNOLOGY - 13.11%
COMPUTERS/PERIPHERAL - 6.33%
Hewlett-Packard Co. 28,400 1,318,825
IBM 22,700 2,235,950
Seagate Technology, Inc.** 11,600 810,550
----------
4,365,325
----------
ELECTRONICS - 5.17%
Anixter International, Inc.** 19,900 482,575
Avnet, Inc. 24,000 645,000
Molex, Inc. 29,550 1,595,700
Motorola, Inc. 34,000 847,875
----------
3,571,150
----------
SOFTWARE - 1.61%
Electronic Data Systems Corp. 23,600 1,107,725
----------
TOTAL TECHNOLOGY 9,044,200
----------
TELECOMMUNICATIONS - 6.36%
COMMUNICATIONS - 6.36%
AT&T Corp. 14,200 329,262
----------
</TABLE>
14
<PAGE> 16
ARISTATA FUNDS
ARISTATA EQUITY FUND
STATEMENT OF INVESTMENTS
OCTOBER 31, 2000 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE*
----------- -----------
<S> <C> <C>
TELECOMMUNICATIONS (CONTINUED)
COMMUNICATIONS (CONTINUED)
Bellsouth Corp. 42,500 $ 2,053,281
Verizon Communications 34,648 2,003,088
-----------
4,385,631
-----------
TOTAL TELECOMMUNICATIONS 4,385,631
-----------
TRANSPORTATION - 0.92%
RAILS/TRUCK/MARINE - 0.92%
CSX Corp. 25,000 632,813
-----------
TOTAL TRANSPORTATION 632,813
-----------
TOTAL COMMON STOCKS 66,204,912
(Cost $34,456,665) -----------
CLOSED-END FUNDS - 1.46%
FOREIGN - 1.46%
Morgan Stanley Asia-Pacific Fund 113,300 1,005,538
-----------
TOTAL CLOSED-END FUNDS 1,005,538
(Cost $775,571) -----------
SHORT-TERM INVESTMENTS - 2.56%
MUTUAL FUNDS - 2.56%
Fifth Third C/P Fund 767,528 767,528
Fifth Third U.S. Treasury Fund 1,000,000 1,000,000
-----------
1,767,528
-----------
TOTAL SHORT-TERM INVESTMENTS 1,767,528
(Cost $1,767,528) -----------
TOTAL INVESTMENTS
(Cost $36,999,764) 99.97% 68,977,978
Liabilities in Excess
of Other Assets 0.03% 18,399
----------- -----------
NET ASSETS 100.00% $68,996,377
=========== ===========
</TABLE>
* See note 1 to financial statements.
** Denotes non-income producing security.
ARISTATA QUALITY BOND FUND
STATEMENT OF INVESTMENTS
OCTOBER 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
Due Bond Rating** Principal
Date Coupon Moody's/S&P Amount Value*
---- ------ ------------- ---------- ----------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT &
AGENCY OBLIGATIONS - 38.56%
U.S. TREASURY NOTES - 3.80%
07/15/06 7.000% Aaa $1,400,000 $1,476,269
----------
U.S. TREASURY BONDS - 8.51%
02/15/07 7.625% Aaa 1,367,000 1,388,574
11/15/07 7.875% Aaa 920,000 950,147
05/15/10 10.000% Aaa 840,000 970,767
----------
3,309,488
----------
FEDERAL FARM CREDIT BANK - 1.23%
01/22/08 6.120% Aaa 500,000 478,833
----------
FEDERAL HOME LOAN BANK - 11.86%
08/19/09 7.050% Aaa 250,000 246,839
01/12/10 7.155% Aaa 250,000 248,367
05/24/10 8.050% Aaa 250,000 251,376
10/29/13 6.150% Aaa 250,000 224,680
02/25/14 6.540% Aaa 250,000 229,835
03/10/14 6.730% Aaa 250,000 232,551
08/25/14 8.010% Aaa 250,000 245,636
09/23/14 8.000% Aaa 250,000 245,619
11/17/14 8.040% Aaa 500,000 491,484
01/14/15 8.000% Aaa 400,000 394,075
01/27/15 8.000% Aaa 500,000 496,232
02/09/15 8.000% Aaa 200,000 201,646
02/25/15 8.000% Aaa 250,000 248,233
08/14/15 8.000% Aaa 200,000 198,639
10/26/15 8.000% Aaa 200,000 196,503
06/08/18 7.000% Aaa 500,000 464,082
----------
4,615,797
----------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 4.93%
11/05/12 7.115% Aaa 800,000 766,682
03/18/13 6.650% Aaa 500,000 466,762
03/03/14 6.800% Aaa 200,000 186,868
04/14/14 6.950% Aaa 200,000 188,231
09/06/16 8.075% Aaa 315,000 309,702
----------
1,918,245
----------
</TABLE>
15
<PAGE> 17
ARISTATA FUNDS
ARISTATA QUALITY BOND FUND
STATEMENT OF INVESTMENTS
OCTOBER 31, 2000 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Due Bond Rating** Principal
Date Coupon Moody's/S&P Amount Value*
---- ------ ------------- --------- ----------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT &
AGENCY OBLIGATIONS (CONTINUED)
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 8.23%
01/29/08 6.460% Aaa 500,000 $ 484,079
05/05/08 6.780% Aaa 250,000 244,343
02/04/09 6.030% Aaa 500,000 472,079
10/16/12 7.080% Aaa 400,000 387,853
12/03/12 6.920% Aaa 800,000 774,833
01/22/13 6.440% Aaa 500,000 470,339
10/16/14 8.000% Aaa 250,000 249,691
03/10/16 8.200% Aaa 105,000 117,255
-----------
3,200,472
-----------
TOTAL U.S. GOVERNMENT & 14,999,104
-----------
AGENCY OBLIGATIONS
(Cost $14,653,174)
CORPORATE BONDS - 56.45%
COMMUNICATIONS - 5.72%
AT&T Corp.
03/15/09 6.000% A1/AA- 250,000 219,757
Hewlett Packard Co.
06/15/05 7.150% Aa2/AA- 400,000 401,034
New York Telephone Co.
02/15/04 6.250% A1/A+ 500,000 487,383
Southern New England Telephone Co.
12/15/03 6.125% Aa3/AA 700,000 685,462
Southwestern Bell Telephone Co.
06/01/03 5.875% Aa2/AA 145,000 141,829
06/01/08 6.750% Aa3/AA 300,000 288,233
----------
TOTAL COMMUNICATIONS 2,223,698
----------
ELECTRIC UTILITIES - 2.74%
Consolidated Edison Co.
02/01/02 6.625% A1/A+ 800,000 797,666
Gulf Power Co.
08/15/04 7.050% A2/A 270,000 269,000
----------
TOTAL ELECTRIC UTILITIES 1,066,666
----------
</TABLE>
<TABLE>
<CAPTION>
Due Bond Rating** Principal
Date Coupon Moody's/S&P Amount Value*
---- ------ ------------- --------- ----------
<S> <C> <C> <C> <C>
FINANCIAL - 19.10%
AGRICULTURE - 1.09%
John Deere Capital Corp.
10/23/01 5.350% A2/A+ 430,000 $ 423,837
----------
AUTOMOBILE - 1.27%
Ford Motor Credit Co.
06/03/03 6.625% A1/A 500,000 492,747
----------
BANKS/S & L/FINANCE/LEASE - 8.26%
Bank of America Corp.
05/12/05 7.125% Aa2/A+ 500,000 501,451
Bankers Trust New York Corp.
03/01/01 9.400% A3/A+ 350,000 352,648
Bear Stearns Co.
04/13/03 6.750% A2/A 750,000 741,218
03/01/07 7.000% A2/A 250,000 240,215
Citicorp
08/15/05 6.750% A1/A+ 700,000 691,485
First Bank System
10/15/03 6.000% A1/A 500,000 486,657
NCNB Corp.
08/01/02 7.750% A2/A+ 200,000 200,071
----------
3,213,745
----------
BROKERS/FINANCIAL SERVICES - 5.35%
Charles Schwab Corp.
03/01/10 8.050% A3/A- 450,000 466,211
Merrill Lynch & Co.
04/27/08 7.000% Aa3/AA- 700,000 682,303
Morgan Stanley Dean Witter & Co.
10/15/01 8.875% Aa3/A+ 400,000 407,587
01/15/07 8.330% Aa3/A+ 500,000 524,343
----------
2,080,444
----------
INSURANCE - 3.13%
Allstate Insurance Corp.
06/15/03 6.750% A1/A 550,000 546,293
CNA Financial Corp.
11/15/03 6.250% A3/A- 700,000 670,160
----------
1,216,453
----------
TOTAL FINANCIAL 7,427,226
----------
</TABLE>
16
<PAGE> 18
ARISTATA FUNDS
ARISTATA QUALITY BOND FUND
STATEMENT OF INVESTMENTS
OCTOBER 31, 2000 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Due Bond Rating** Principal
Date Coupon Moody's/S&P Amount Value*
---- ------ ------------- --------- ----------
<S> <C> <C> <C> <C>
INDUSTRIAL - 28.89%
AEROSPACE - 1.28%
Boeing Co.
06/15/03 6.350% A1/AA- 500,000 $ 496,414
----------
AUTOMOBILE - 2.15%
Ford Motor Company
09/15/01 9.000% A1/A 350,000 354,410
General Motors Corp.
05/01/05 6.250% A2/A 500,000 483,243
----------
837,653
----------
BROADCASTING/ENTERTAINMENT - 1.28%
Walt Disney Co.
03/30/06 6.750% A2/A 500,000 499,632
----------
BUILDING MATERIALS - 2.54%
Hanson Trust PLC
01/15/03 7.375% Baa1/A 300,000 300,180
Martin Marietta Corp.
04/15/03 6.500% Baa1/BBB 700,000 687,039
----------
987,219
----------
BUSINESS INFORMATION/SERVICES - 1.39%
Xerox Corp.
04/15/02 8.125% Baa2/BBB- 700,000 539,201
----------
CHEMICALS - 1.81%
E. I. duPont de Nemours & Co.
03/15/04 8.125% Aa3/Aa- 200,000 207,461
ICI Wilmington, Inc.
01/15/02 7.500% Baa2/A- 500,000 497,316
----------
704,777
----------
DRUGS - 0.52%
Eli Lilly & Co.
12/01/02 8.125% Aa3/AA 200,000 202,805
----------
</TABLE>
<TABLE>
<CAPTION>
Due Bond Rating** Principal
Date Coupon Moody's/S&P Amount Value*
---- ------ ------------- --------- ----------
<S> <C> <C> <C> <C>
FOOD/BEVERAGE - 3.67%
Albertson's, Inc.
08/01/09 6.950% A2/A- 150,000 $ 141,368
Archer Daniels Midland Co.
05/15/03 6.250% Aa3/AA- 700,000 689,793
Philip Morris Cos., Inc.
05/15/02 7.625% A2/A 600,000 596,879
----------
1,428,040
----------
HOTEL/RESORT - 1.40%
Carnival Corp.
04/15/08 6.150% A2/A 600,000 543,629
----------
HOUSEHOLD GOODS - 1.46%
Hasbro, Inc.
07/15/08 6.150% Baa1/BBB 300,000 260,152
Whirlpool Corp.
03/01/03 9.000% Baa1/BBB+ 300,000 309,165
----------
569,317
----------
METALS - 1.49%
Alcan Aluminum Ltd.
11/01/08 6.250% A2/A- 630,000 581,351
----------
OFFICE EQUIPMENT/E.D.P. - 1.82%
International Business Machines Corp.
11/01/02 7.250% A1/A+ 700,000 706,539
----------
OIL & GAS - 1.83%
British Petroleum Co.
05/15/02 7.875% Aa1/AA+ 700,000 713,226
----------
PACKAGED GOODS - 1.19%
Fortune Brands, Inc.
04/01/08 6.250% A2/A 500,000 463,404
----------
PAPER/PACKAGING - 2.02%
Avery Dennison Corp.
04/15/05 6.750% A2/A 800,000 787,414
----------
RESTAURANTS - 1.78%
McDonalds Corp.
09/01/05 6.625% Aa2/AA 700,000 693,261
----------
</TABLE>
17
<PAGE> 19
ARISTATA FUNDS
ARISTATA QUALITY BOND FUND
STATEMENT OF INVESTMENTS
OCTOBER 31, 2000 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Due Bond Rating** Principal
Date Coupon Moody's/S&P Amount Value*
---- ------ ------------- --------- ----------
<S> <C> <C> <C> <C>
INDUSTRIAL (CONTINUED)
RETAIL - 1.26%
Wal-Mart Stores, Inc.
08/10/01 6.150% Aa2/AA 350,000 $ 348,920
08/01/02 6.875% Aa2/AA 140,000 140,622
-----------
489,542
-----------
TOTAL INDUSTRIAL 11,243,424
-----------
TOTAL CORPORATE BONDS 21,961,014
(Cost $22,299,615) -----------
SHORT-TERM INVESTMENTS - 3.66%
MUTUAL FUNDS - 3.66%
Fifth Third C/P Fund 1,114,670 1,114,670
Fifth Third U.S. Treasury Fund 307,270 307,270
-----------
TOTAL SHORT-TERM INVESTMENTS 1,421,940
(Cost $1,421,940) -----------
TOTAL INVESTMENTS 98.67% 38,382,058
(Cost $38,374,729)
Other Assets in Excess
of Liabilities 1.33% 515,874
-------- -----------
NET ASSETS 100.00% $38,897,927
======== ===========
</TABLE>
*See note 1 to financial statements.
**Ratings - The Moody's and S&P ratings are believed to be the most recent
ratings at October 31, 2000.
ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
STATEMENT OF INVESTMENTS
OCTOBER 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
Due Bond Rating** Principal
Date Coupon Moody's/S&P Amount Value*
---- ------ ------------- --------- ----------
<S> <C> <C> <C> <C>
COLORADO MUNICIPAL OBLIGATIONS - 94.99%
PREREFUNDED - 21.46%
Colorado Springs Utilities System, Rev
11/15/15 6.500% Aa2/AAA 15,000 $ 15,617
Denver City & County
School District #1
Certificates of Participation
12/01/06 6.600% A/A 500,000 526,060
El Paso County
School District #38
Certificates of Participation
12/01/05 6.750% A1/NR 400,000 413,416
Fort Collins Storm Drainage, Rev
12/01/11 6.625% A1/NR 300,000 309,960
Greeley Water, GO
12/01/11 6.600% A1/AA- 400,000 409,572
Platte River Power Authority, Rev
06/01/18 5.750% Aaa/A+ 900,000 900,027
South Suburban, Rev
Park & Recreation District, FGIC
12/15/10 6.700% Aaa/AAA 250,000 258,750
---------
TOTAL PREREFUNDED 2,833,402
(Cost $2,531,927)
---------
GENERAL OBLIGATION BONDS - 38.74%
Adams County
School District #12, FGIC
12/15/09 5.250% Aaa/AAA 500,000 516,025
Adams County
School District #50
12/01/10 5.250% A1/AA- 500,000 511,095
Boulder County Library
10/01/06 5.900% Aa1/AA+ 300,000 306,900
Boulder County Open Space
06/15/08 5.100% NR/AA 500,000 510,040
Boulder Valley
School District #Re-2
10/15/08 6.250% A1/AA 500,000 507,380
</TABLE>
18
<PAGE> 20
ARISTATA FUNDS
ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
STATEMENT OF INVESTMENTS
OCTOBER 31, 2000 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Due Bond Rating** Principal
Date Coupon Moody's/S&P Amount Value*
---- ------ ------------- --------- ----------
<S> <C> <C> <C> <C>
GENERAL OBLIGATION BONDS (CONTINUED)
Boulder Valley
School District #Re-2, FGIC
12/01/03 5.000% Aaa/AAA 150,000 $ 148,105
Clear Creek County
School District #Re-1, FSA
12/01/17 5.750% Aaa/AAA 100,000 103,191
Denver Colorado City & County
08/01/14 5.000% Aa2/AA+ 100,000 98,209
Douglas County
School District #Re-1, MBIA
12/15/03 5.650% Aaa/AAA 400,000 413,688
Fort Collins Water
12/01/02 6.000% Aa1/AA 200,000 206,160
San Miguel County
School District #R-1, MBIA
12/01/06 5.200% Aaa/AAA 250,000 257,820
South Suburban Park &
Recreation District, FGIC
12/15/06 5.050% Aaa/AAA 500,000 508,075
Summit County
School District #Re-1, FGIC
12/01/07 5.250% Aaa/AAA 500,000 513,015
Thornton, FSA
12/01/07 5.150% Aaa/AAA 500,000 514,590
----------
TOTAL GENERAL OBLIGATION BONDS 5,114,293
(Cost $4,979,518) ----------
REVENUE BONDS - 34.79%
EDUCATION - 0.99%
Colorado EDL & Cultural
12/01/16 6.000% NR/AA 125,000 130,905
----------
FINANCE - 8.60%
Aspen Colorado Sales Tax
11/01/10 5.000% NR/A- 120,000 120,541
Broomfield Colorado Sales
& Use Tax, AMBAC
06/01/05 6.000% Aaa/AAA 300,000 308,820
Boulder Colorado Sales Tax, AMBAC
08/15/13 5.150% Aaa/AAA 100,000 100,077
</TABLE>
<TABLE>
<CAPTION>
Due Bond Rating** Principal
Date Coupon Moody's/S&P Amount Value*
---- ------ ------------- --------- ----------
<S> <C> <C> <C> <C>
Douglas County Sales &
Use Tax, MBIA
10/15/07 5.250% Aaa/AAA 300,000 $ 309,036
Durango Colorado Sales &
Use Tax, FGIC
12/01/16 5.500% Aaa/AAA 200,000 202,450
Jefferson County Open Space, FGIC
11/01/19 5.000% Aaa/AAA 100,000 94,140
----------
1,135,064
----------
HOSPITAL - 1.68%
University of Colorado
Hospital Authority, AMBAC
11/15/09 5.000% Aaa/NR 220,000 221,630
----------
HOUSING - 1.76%
Colorado Housing Finance Authority
Single Family Housing
11/01/14 7.150% Aa1/AAA 225,000 232,434
----------
POWER - 3.43%
Adams County
Pollution Control, MBIA
04/01/08 5.625% Aaa/AAA 300,000 308,448
Pueblo County
Pollution Control, AMBAC
01/01/19 5.100% Aaa/AAA 150,000 143,630
----------
452,078
----------
TRANSPORTATION - 6.24%
Arapahoe County
Highway E-470, MBIA
08/31/05 5.150% Aaa/AAA 250,000 256,435
Colorado Department of
Transportation, AMBAC
06/15/15 5.700% Aaa/AAA 250,000 258,650
Denver City & County
Airport, MBIA
11/15/16 5.750% Aaa/AAA 300,000 308,358
----------
823,443
----------
</TABLE>
19
<PAGE> 21
ARISTATA FUNDS
ARISTATA COLORADO QUALITY TAX-EXEMPT FUND
STATEMENT OF INVESTMENTS
OCTOBER 31, 2000 (UNAUDITED) (CONTINUED)
<TABLE>
Due Bond Rating** Principal
Date Coupon Moody's/S&P Amount Value*
---- ------ ------------- --------- ----------
<S> <C> <C> <C> <C>
REVENUE BONDS (CONTINUED)
WATER/SEWER - 12.09%
Boulder Colorado Water & Sewer
12/01/12 5.300% Aa2/AA+ 125,000 $ 127,580
Colorado Water Reservoir & Power
Development Authority, FGIC
11/01/06 6.550% Aaa/AAA 500,000 519,825
Colorado Water Reservoir & Power
Development Authority
09/01/07 5.250% Aaa/AAA 250,000 259,397
Fountain Valley Authority
Water Treatment
12/01/07 5.200% Aa2/AA 400,000 410,580
Little Thompson Water District, MBIA
12/01/18 5.800% Aaa/NR 150,000 154,775
Pueblo Colorado Board
Waterworks, FSA
11/01/09 5.250% Aaa/AAA 120,000 124,200
-----------
1,596,357
-----------
TOTAL REVENUE BONDS 4,591,911
(Cost $4,462,113) -----------
TOTAL COLORADO MUNICIPAL
OBLIGATIONS 12,539,606
(Cost $11,973,558) -----------
TOTAL INVESTMENTS 94.99% 12,539,606
(Cost $11,973,558)
Other Assets in Excess
of Liabilities 5.01% 660,871
-------- -----------
NET ASSETS 100.00% $13,200,477
======== ===========
</TABLE>
*See note 1 to financial statements.
**Ratings - The Moody's and S&P ratings are believed to be the most recent
ratings at October 31, 2000.
***The Aristata Colorado Quality Tax-Exempt Fund had the following insurance
concentration greater than 10% at October 31, 2000 (as a percentage of net
assets):
FGIC 20.91%
MBIA 15.22%
20
<PAGE> 22
ARISTATA FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
COLORADO QUALITY
EQUITY QUALITY BOND TAX-EXEMPT
------------ ------------ ----------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (Cost- see below) $ 68,977,978 $ 38,382,058 $ 12,539,606
Cash 0 0 458,179
Dividends receivable 46,367 0 0
Interest receivable 14,839 734,640 257,615
Receivable for securities sold 0 41,012 0
Organizational costs, net of accumulated amortization 18,173 12,792 4,962
Prepaid and other assets 1,333 2,253 8
------------ ------------ ------------
Total assets 69,058,690 39,172,755 13,260,370
------------ ------------ ------------
LIABILITIES:
Payable for portfolio shares redeemed 0 41,012 0
Accrued investment advisory fee 41,346 14,555 0
Accrued administration fee 14,795 7,397 4,931
Dividends payable 0 207,306 51,813
Other payables 6,172 4,558 3,149
------------ ------------ ------------
Total Liabilities 62,313 274,828 59,893
------------ ------------ ------------
NET ASSETS $ 68,996,377 $ 38,897,927 $ 13,200,477
============ ============ ============
COST OF INVESTMENTS $ 36,999,764 $ 38,374,729 $ 11,973,558
============ ============ ============
COMPOSITION OF NET ASSETS:
Paid in capital $ 30,157,354 $ 39,347,275 $ 12,650,374
Un (Over)-distributed net investment income 15,333 46,681 (616)
Accumulated net realized gain (loss) on investments 6,845,476 (503,358) (15,329)
Net unrealized appreciation in value of investments 31,978,214 7,329 566,048
------------ ------------ ------------
NET ASSETS $ 68,996,377 $ 38,897,927 $ 13,200,477
============ ============ ============
NET ASSET VALUE PER SHARE:
Net Assets $ 68,996,377 $ 38,897,927 $ 13,200,477
Shares of beneficial interest outstanding 7,060,856 4,114,065 1,392,016
Net asset value and redemption price per share $ 9.77 $ 9.45 $ 9.48
</TABLE>
See notes to financial statements.
21
<PAGE> 23
ARISTATA FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED OCTOBER 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
COLORADO QUALITY
EQUITY QUALITY BOND TAX-EXEMPT
------------ ------------ ----------------
<S> <C> <C> <C>
INVESTMENT INCOME:
INTEREST $ 72,111 $ 1,462,514 $ 359,629
DIVIDENDS 693,650 0 0
------------ ------------ ------------
Total Income 765,761 1,462,514 359,629
------------ ------------ ------------
EXPENSES:
Investment advisory fee (Note 4) 300,890 104,226 33,606
Administration fee (Note 4) 90,636 45,318 30,246
Legal 0 2,080 0
Registration 3,098 2,786 0
Amortization of organization costs 3,862 2,475 815
Insurance 1,803 1,225 423
Other 7,227 6,562 2,889
------------ ------------ ------------
Total Expenses Before Waiver 407,516 164,672 67,979
Expenses waived by investment adviser (Note 4) (35,829) (18,756) (33,606)
Expenses reimbursed by investment adviser (Note 4) 0 0 (767)
------------ ------------ ------------
Net Expenses 371,687 145,916 33,606
------------ ------------ ------------
NET INVESTMENT INCOME 394,074 1,316,598 326,023
------------ ------------ ------------
Net realized gain (loss) on investments 1,577,568 (150,763) (8,158)
Change in net unrealized appreciation/depreciation 1,513,518 746,188 189,460
------------ ------------ ------------
Net gain on investments 3,091,086 595,425 181,302
------------ ------------ ------------
Net Increase in Net Assets From Operations $ 3,485,160 $ 1,912,023 $ 507,325
============ ============ ============
</TABLE>
See notes to financial statements.
22
<PAGE> 24
ARISTATA FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EQUITY FUND
----------------------------------------------
For the Six Months Ended
October 31, 2000 For the Year Ended
(Unaudited) April 30, 2000
------------------------ ------------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 394,074 $ 999,597
Net realized gain on investments 1,577,568 7,272,554
Change in net unrealized appreciation/depreciation 1,513,518 (7,096,604)
--------------- ---------------
Net increase in net assets from operations 3,485,160 1,175,547
--------------- ---------------
DISTRIBUTIONS:
From net investment income (394,578) (976,762)
From net realized gain 0 (13,382,921)
--------------- ---------------
Net decrease in net assets from distributions (394,578) (14,359,683)
--------------- ---------------
SHARE TRANSACTIONS (NOTE 2):
Proceeds from sale of shares 1,924,022 7,802,900
Reinvested dividends 287,232 10,563,696
Cost of shares redeemed (9,381,224) (26,479,442)
--------------- ---------------
Net decrease in net assets from share transactions (7,169,970) (8,112,846)
--------------- ---------------
NET DECREASE IN NET ASSETS (4,079,388) (21,296,982)
--------------- ---------------
NET ASSETS:
Beginning of period 73,075,765 94,372,747
--------------- ---------------
End of period* $ 68,996,377 $ 73,075,765
=============== ===============
*Includes undistributed net investment income of $ 15,333 $ 15,837
</TABLE>
See notes to financial statements.
23
<PAGE> 25
ARISTATA FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
QUALITY BOND FUND
-----------------------------------------------
For the Six Months Ended
October 31, 2000 For the Year Ended
(Unaudited) April 30, 2000
------------------------ ------------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 1,316,598 $ 2,918,266
Net realized loss on investments (150,763) (352,653)
Change in net unrealized appreciation/depreciation 746,188 (2,479,723)
--------------- ---------------
Net increase in net assets from operations 1,912,023 85,890
--------------- ---------------
DISTRIBUTIONS:
From net investment income (1,316,598) (2,891,225)
--------------- ---------------
Net decrease in net assets from distributions (1,316,598) (2,891,225)
--------------- ---------------
SHARE TRANSACTIONS (NOTE 2):
Proceeds from sale of shares 2,186,877 8,892,852
Reinvested dividends 918,599 2,346,208
Cost of shares redeemed (7,211,312) (18,005,611)
--------------- ---------------
Net decrease in net assets from share transactions (4,105,836) (6,766,551)
--------------- ---------------
NET DECREASE IN NET ASSETS (3,510,411) (9,571,886)
--------------- ---------------
NET ASSETS:
Beginning of period 42,408,338 51,980,224
--------------- ---------------
End of period* $ 38,897,927 $ 42,408,338
=============== ===============
*Includes undistributed net investment income of $ 46,681 $ 46,681
</TABLE>
See notes to financial statements.
24
<PAGE> 26
ARISTATA FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
COLORADO QUALITY TAX-EXEMPT FUND
------------------------------------------------
For the Six Months Ended
October 31, 2000 For the Year Ended
(Unaudited) April 30, 2000
------------------------ ------------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 326,023 $ 769,558
Net realized loss on investments (8,158) (8,323)
Change in net unrealized appreciation/depreciation 189,460 (761,940)
--------------- ---------------
Net increase (decrease) in net assets from operations 507,325 (705)
--------------- ---------------
DISTRIBUTIONS:
From net investment income (326,023) (769,558)
From net realized gain 0 (152,140)
--------------- ---------------
Net decrease in net assets from distributions (326,023) (921,698)
--------------- ---------------
SHARE TRANSACTIONS (NOTE 2):
Proceeds from sale of shares 153,637 964,517
Reinvested dividends 39,887 132,915
Cost of shares redeemed (973,733) (3,877,483)
--------------- ---------------
Net decrease in net assets from share transactions (780,209) (2,780,051)
--------------- ---------------
NET DECREASE IN NET ASSETS (598,907) (3,702,454)
--------------- ---------------
NET ASSETS:
Beginning of period 13,799,384 17,501,838
--------------- ---------------
End of period* $ 13,200,477 $ 13,799,384
=============== ===============
*Includes over-distributed net investment income of $ (616) $ (616)
</TABLE>
See notes to financial statements.
25
<PAGE> 27
ARISTATA FUNDS
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding
throughout the period indicated:
<TABLE>
<CAPTION>
EQUITY FUND
----------------------------------------------------------------------------------------
For the Six Months Ended For the Period
October 31, 2000 For the Year Ended April 30, March 2, 1998
(Unaudited) 2000 1999 to April 30, 1998
------------------------ --------------- --------------- -----------------
<S> <C> <C> <C> <C>
SELECTED PER-SHARE DATA:
Net asset value - beginning of period $ 9.34 $ 11.11 $ 10.44 $ 10.00
--------------- --------------- --------------- ---------------
Income from investment operations:
Net investment income 0.05 0.12 0.14 0.01
Net realized and unrealized gain
(loss) on investments 0.43 (0.01) 0.81 0.44
--------------- --------------- --------------- ---------------
Total income from investment operations 0.48 0.11 0.95 0.45
--------------- --------------- --------------- ---------------
DISTRIBUTIONS:
From net investment income (0.05) (0.12) (0.14) (0.01)
From net realized gain -- (1.76) (0.14) --
--------------- --------------- --------------- ---------------
Total distributions (0.05) (1.88) (0.28) (0.01)
--------------- --------------- --------------- ---------------
Net asset value - end of period $ 9.77 $ 9.34 $ 11.11 $ 10.44
=============== =============== =============== ===============
TOTAL RETURN 5.21% 2.23% 9.39% 4.54%
=============== =============== =============== ===============
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 68,996 $ 73,076 $ 94,373 $ 101,614
=============== =============== =============== ===============
Ratio of expenses to average net assets 1.05%(1) 1.01% 0.95% 0.95%(1)
=============== =============== =============== ===============
Ratio of net investment income to
average net assets 1.11%(1) 1.20% 1.41% 0.84%(1)
=============== =============== =============== ===============
Ratio of expenses to average net
assets without fee waivers 1.15%(1) 1.09% 1.11% 1.17%(1)
=============== =============== =============== ===============
Ratio of net investment income to
average net assets without fee waivers 1.01%(1) 1.12% 1.25% 0.62%(1)
=============== =============== =============== ===============
Portfolio turnover rate 24.48%(1) 16.63% 25.26% 14.20%(1)
=============== =============== =============== ===============
</TABLE>
(1) Annualized
See notes to financial statements.
26
<PAGE> 28
ARISTATA FUNDS
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding
throughout the period indicated:
<TABLE>
<CAPTION>
QUALITY BOND FUND
----------------------------------------------------------------------------------------
For the Six Months Ended For the Period
October 31, 2000 For the Year Ended April 30, March 2, 1998
(Unaudited) 2000 1999 to April 30, 1998
------------------------ -------------- -------------- -----------------
<S> <C> <C> <C> <C>
SELECTED PER-SHARE DATA:
Net asset value - beginning of period $ 9.32 $ 9.88 $ 9.97 $ 10.00
-------------- -------------- -------------- --------------
Income from investment operations:
Net investment income 0.30 0.59 0.62 0.10
Net realized and unrealized gain (loss)
on investments 0.13 (0.57) (0.08) (0.03)
-------------- -------------- -------------- --------------
Total income from investment operations 0.43 0.02 0.54 0.07
-------------- -------------- -------------- --------------
DISTRIBUTIONS:
From net investment income (0.30) (0.58) (0.61) (0.10)
From net realized gain -- -- (0.02) --
-------------- -------------- -------------- --------------
Total distributions (0.30) (0.58) (0.63) (0.10)
-------------- -------------- -------------- --------------
Net asset value - end of period $ 9.45 $ 9.32 $ 9.88 $ 9.97
============== ============== ============== ==============
TOTAL RETURN 4.67% 0.28% 5.49% 0.69%
============== ============== ============== ==============
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 38,898 $ 42,408 $ 51,980 $ 57,510
============== ============== ============== ==============
Ratio of expenses to average net assets 0.70%(1) 0.68% 0.65% 0.65%(1)
============== ============== ============== ==============
Ratio of net investment income to
average net assets 6.32%(1) 6.16% 6.10% 6.00%(1)
============== ============== ============== ==============
Ratio of expenses to average net
assets without fee waivers 0.79%(1) 0.75% 0.76% 0.83%(1)
============== ============== ============== ==============
Ratio of net investment income to
average net assets without fee waivers 6.23%(1) 6.10% 5.99% 5.82%(1)
============== ============== ============== ==============
Portfolio turnover rate 9.10%(1) 10.06% 9.79% 11.44%(1)
============== ============== ============== ==============
</TABLE>
(1) Annualized
See notes to financial statements.
27
<PAGE> 29
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 Six Months Ended For the Period
October 31, 2000 For the Year Ended April 30, March 2, 1998
(Unaudited) 2000 1999 to April 30, 1998
------------------------ -------------- -------------- -----------------
<S> <C> <C> <C> <C>
SELECTED PER-SHARE DATA:
Net asset value - beginning of period $ 9.35 $ 9.89 $ 9.94 $ 10.00
-------------- -------------- -------------- --------------
Income from investment operations:
Net investment income 0.23 0.46 0.49 0.08
Net realized and unrealized gain (loss)
on investments 0.13 (0.45) 0.04 (0.06)
-------------- -------------- -------------- --------------
Total income from investment operations 0.36 0.01 0.53 0.02
-------------- -------------- -------------- --------------
DISTRIBUTIONS:
From net investment income (0.23) (0.46) (0.49) (0.08)
From net realized gain -- (0.09) (0.09) --
-------------- -------------- -------------- --------------
Total distributions (0.23) (0.55) (0.58) (0.08)
-------------- -------------- -------------- --------------
Net asset value - end of period $ 9.48 $ 9.35 $ 9.89 $ 9.94
============== ============== ============== ==============
TOTAL RETURN 3.89% 0.16% 5.40% 0.22%
============== ============== ============== ==============
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 13,200 $ 13,799 $ 17,502 $ 23,381
============== ============== ============== ==============
Ratio of expenses to average net assets 0.50%(1) 0.48% 0.45% 0.45%(1)
============== ============== ============== ==============
Ratio of net investment income to
average net assets 4.85%(1) 4.85% 4.85% 5.00%(1)
============== ============== ============== ==============
Ratio of expenses to average net assets
without fee waivers and reimbursements 1.01%(1) 0.93% 0.91% 0.92%(1)
============== ============== ============== ==============
Ratio of net investment income to
average net assets without fee
waivers and reimbursements 4.34%(1) 4.41% 4.40% 4.53%(1)
============== ============== ============== ==============
Portfolio turnover rate 9.58%(1) 12.41% 7.86% 17.64%(1)
============== ============== ============== ==============
</TABLE>
(1) Annualized
See notes to financial statements.
28
<PAGE> 30
ARISTATA FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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 Fund are valued as of the close
of regular trading on the New York Stock Exchange, normally 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.
EXPENSES: Most expenses of the Trust can be directly attributed to a
Fund. Expenses which cannot be directly attributed are apportioned among all
funds in the Trust based on average net assets.
DIVIDENDS: The Equity Fund will declare and pay dividends from net
investment income, if any, quarterly. Dividends from net investment income are
declared daily and paid monthly for the 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 October 31, 2000, the remaining period of
amortization was 28 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.
29
<PAGE> 31
ARISTATA FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
2. SHARES OF BENEFICIAL INTEREST
On October 31, 2000, there was an unlimited number of no par value
shares of beneficial interest authorized for each fund. Transactions in shares
of beneficial interest were as follows:
<TABLE>
<CAPTION>
ARISTATA COLORADO QUALITY
ARISTATA EQUITY FUND ARISTATA QUALITY BOND FUND TAX-EXEMPT FUND
-------------------------------- --------------------------------- --------------------------------
For the Six For the Year For the Six For the Year For the Six For the Year
Months Ended Ended April 30, Months Ended Ended April 30, Months Ended Ended April 30,
October 31, 2000 2000 October 31, 2000 2000 October 31, 2000 2000
---------------- --------------- ---------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 203,009 794,677 232,502 934,245 16,362 100,351
Shares issued as
reinvestment of dividends 30,480 1,204,528 97,674 246,348 4,233 13,982
Shares redeemed (995,741) (2,674,291) (765,906) (1,892,464) (103,855) (409,379)
------------- ------------- ------------- ------------- ------------- -------------
Net Decrease (762,252) (675,086) (435,730) (711,871) (83,260) (295,046)
============= ============= ============= ============= ============= =============
</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 October 31, 2000
Gross appreciation (excess of
value over tax cost) 32,507,380 935,220 571,656
Gross depreciation (excess of
tax cost over value) (529,166) (927,891) (5,608)
--------------- --------------- ---------------
Net unrealized appreciation 31,978,214 7,329 566,048
=============== =============== ===============
Cost of investments for income
tax purposes 36,999,768 38,374,729 11,973,558
=============== =============== ===============
</TABLE>
4. INVESTMENT ADVISORY FEES, ADMINISTRATION FEES AND OTHER RELATED PARTY
TRANSACTIONS
Tempest Investment Counselors, Inc. (the "Adviser") (formerly Tempest,
Isenhart, Chafee, Lansdowne, and Associates, Inc.) 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 Equity Fund, Quality Bond Fund
and Colorado Quality Tax-Exempt Fund, respectively. The Adviser has agreed to
voluntarily waive a portion of its fees and reimburse other expenses 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 Equity Fund,
$7,500 for the Quality Bond Fund and $5,000 for the 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.
30
<PAGE> 32
ARISTATA FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Shareholders holding more than 10% of the Funds' outstanding shares as
of October 31, 2000, constituted 40% and 45% of the Equity Fund and Quality Bond
Fund, respectively.
5. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from the sale of
securities, other than temporary cash investments, during the six-months ended
October 31, 2000 were as follows:
<TABLE>
<CAPTION>
U.S. GOVERNMENT
SECURITIES ALL OTHER TOTAL
--------------- --------------- ---------------
<S> <C> <C> <C>
ARISTATA EQUITY FUND
Purchases $ 0 $ 8,337,230 $ 8,337,230
Sales $ 0 $ 16,379,943 $ 16,379,943
ARISTATA QUALITY BOND FUND
Purchases $ 1,221,615 $ 539,180 $ 1,760,795
Sales $ 2,659,438 $ 2,267,452 $ 4,926,890
ARISTATA COLORADO QUALITY
TAX-EXEMPT FUND
Purchases $ 0 $ 620,919 $ 620,919
Sales $ 0 $ 1,468,451 $ 1,468,451
</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>
31
