<PAGE> 1
SEMI-ANNUAL
REPORT
OCTOBER 31, 2000
[UNITED ASSOCIATION LOGO]
UNITED ASSOCIATION
S&P 500 INDEX FUND
<PAGE> 2
LETTER FROM THE GENERAL PRESIDENT OF THE UNITED ASSOCIATION
Dear Fellow Shareholders:
As the first year of the new century draws to a close, we are proud to report
the six-month results of the first union-affiliated index mutual fund, the
United Association S&P 500 Index Fund. When the Fund was launched on March 2,
2000, our hopes were high that it would fulfill its goal of matching, before
fund expenses, the investment results of the Standard & Poor's 500 Index which
is made up of common stocks of 500 large, publicly traded companies. During the
six-months ended October 31, 2000, the S&P 500 Index returned -1.03% while the
Class I and Class II shares of the Fund returned -0.80% and -0.82%,
respectively.
We are proud to report that interest in the UA S&P 500 Index Fund during this
period has continued as evidenced by hundreds of phone calls and by over 5,000
visitors to the website who made over 70,000 hits. Visitors to www.uafund.com
gathered performance information and downloaded prospectuses and applications
for the Fund. New accounts continued to be opened and just two months after the
Fund was inaugurated, it had assets of nearly $600 million. Today, as we prepare
to usher in the New Year, the Fund has more than $950 million in assets--a
record of growth that reflects the enthusiasm and support of you, the Fund's
investors.
I am deeply grateful to all the participants in this Fund, because your actions
indicate your confidence in this program and in your union. It is also an
expression of your pride in our great organization of dedicated members.
The accompanying information is the UA S&P 500 Index Fund's semi-annual report.
In these pages are the details of the holdings, financial highlights,
performance results and stock market commentary. I urge you to review this
document carefully and thoroughly, as I believe that you, like me, will benefit
from the information.
There continues to be enormous interest in this Fund. Not only do we have
investors from within the United Association, but we are also experiencing many
serious inquiries from other organizations, as well. Word is spreading about the
UA S&P 500 Index Fund. This momentum is due to the benefits of the UA S&P 500
Index Fund which include:
o A record of lower than average expense ratio for both
individual and institutional investors when compared to other
S&P 500 Index Funds.*
o Members, officers and their friends and families have an
opportunity to participate in an S&P 500 Index fund designed
especially for them.
o Members, officers and their friends and families are able to
demonstrate their pride in the future through their
involvement with this Fund.
o The proxy voting rights associated with this Fund are gained
on behalf of all the investors.
As investors, United Association members are very aware that the exercise of
proxy voting rights held in the UA S&P 500 Index Fund is extremely important for
all of us. This understanding of the importance of proxy voting is no doubt a
significant element in the decision our members make regarding participation in
the Fund.
1
<PAGE> 3
LETTER FROM THE GENERAL PRESIDENT OF THE UNITED ASSOCIATION (CONTINUED)
Proxy voting gives us a voice in corporate boardrooms, enabling us to explain
the benefits of union labor on construction, renovation and maintenance
projects. This action serves two equally important purposes: We get the message
out that building union provides the best value for money spent, and in doing
so, we protect our investments by ensuring that capital expenditures on
construction are made wisely and properly. It is not only our right to do
this--it is also our obligation as stockholders in these corporations.
As a result of our activism in exercising our proxy voting rights, we have had
many successes in the past several years in educating corporate owners about the
advantages of using union building tradespeople. Time and again, the decision
makers in these companies have seen the wisdom of building union, and that is
very gratifying to all of us.
With the UA S&P 500 Index Fund, we will carry on with our proxy voting
activities on behalf of all our members. In this way, our rights as shareholders
will be safeguarded.
I am proud of the UA S&P 500 Index Fund. Your support has proved that the time
was right for the creation of a union-affiliated mutual fund and we look forward
to welcoming new investors that have interest in investing in this Fund.
If you want more information on the UA S&P 500 Index Fund, I urge you to call
the Fund's toll free number, 1-888-766-8043, or visit our website at
www.uafund.com. Thank you for your investment in the UA S&P 500 Index Fund, and
for your confidence in the United Association.
Sincerely,
/s/ MARTIN J. MADDALONI
Martin J. Maddaloni
General President of the United Association
Trustee of Financial Investors Trust
*Source: Morningstar, 10/31/00. The average expense ratio for the 28
institutional S&P 500 Index funds was 0.37%. The UA S&P 500 Index Fund Class I
was 0.12%. The average expense ratio for the 41 retail S&P 500 Index funds was
0.64%. The UA S&P 500 Index Fund Class II was 0.16%. Morningstar uses annual
figures as of the latest annual report while the UA S&P 500 Index Fund's figures
are annualized from the 5/01/00 - 10/31/00 period.
Total returns for the Fund 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.
2
<PAGE> 4
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 - UAIIX
MARKET COMMENTARY FOR THE SIX MONTHS ENDED OCTOBER 31, 2000
The stock market, as measured by the Standard and Poor's 500 Index, generated a
negative 1.03% rate of total return for the six months ended 10/31/2000, as a
heightened level of volatility and anxiety seemed to loom over the equity
markets. Early in the period, healthy earnings and revenue gains from several
key companies and continued impressive economic growth did not help the equity
markets, which focused on the negative implications of the Federal Reserve's
widely anticipated sixth interest rate increase since June, 1999. During the
period relief seemed to appear on the horizon as mounting evidence of broad
based economic cooling took hold. However, while Mr. Greenspan and company
acknowledged a slowing in the torrid pace of economic growth, Federal Reserve
policy makers would not categorically rule out the possibility of another
interest rate increase, the seventh since June, 1999, terming recent evidence of
economic cooling as "preliminary and tentative."
Despite continued evidence supporting the successful "soft landing" economic
scenario and the resulting late quarter whispers of a Federal Reserve initiated
interest rate reduction, the stock market was clouded by the inflationary
implications of rapidly rising energy prices, valuation concerns and a renewed
sense of corporate earnings growth apprehension. The period ended with a "relief
rally", with the benchmark index posting a gain of 4.70% in the last three days
of October. With this bounce, it remains to be seen if the Standard and Poor's
500 Index will finish positive for the year.
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
<TABLE>
<S> <C>
General Electric Co 4.01%
Cisco Systems Inc 2.83%
Microsoft Corp 2.67%
Exxon Mobil Corp 2.29%
Intel Corp 2.24%
Pfizer Inc 2.00%
Citigroup Inc 1.76%
American International Group 1.69%
Merck & Co Inc 1.56%
Wal-Mart Stores Inc 1.50%
-----
Top Ten 22.55%
=====
</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> 5
FUND OVERVIEW (CONTINUED)
SECTOR DIVERSIFICATION* (% OF COMMON STOCKS) - OCTOBER 31, 2000
<TABLE>
<CAPTION>
FUND S&P 500 INDEX
---- -------------
<S> <C> <C>
Basic Materials.................................... 2.1% 2.1%
Consumer - Cyclical................................ 5.9% 5.9%
Consumer - NonCyclical............................. 6.7% 6.7%
Consumer Services.................................. 4.4% 4.4%
Commercial Services................................ 1.4% 1.3%
Energy............................................. 6.2% 6.2%
Financial.......................................... 16.0% 15.9%
Health Care........................................ 12.1% 12.1%
Industrials........................................ 6.7% 6.7%
Technology......................................... 28.6% 28.8%
Telecommunications ................................ 6.4% 6.4%
Transportation..................................... 0.6% 0.6%
Utility............................................ 2.9% 2.9%
</TABLE>
*Source: BARRA
DEFINITION OF INDICES
The STANDARD & POOR'S 500(R) 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.
"Standard & Poor's(R)", "S&P(R)", "S&P500(R)", "Standard & Poor's 500" and "500"
are trademarks of The McGraw-Hill Companies, Inc. and have been licesned for use
by Financial Investors Trust. The Product is not sponsored, endorsed, sold or
promoted by Standard & Poor's and Standard & Poor's makes no representation
regarding the advisability of investing in the Product.
4
<PAGE> 6
UNITED ASSOCIATION S&P 500 INDEX FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCKS (93.3%) SHARES MARKET VALUE SHARES MARKET VALUE
--------------------- ------ ------------ ------ ------------
<S> <C> <C> <C> <C> <C>
General Electric Co 697,014 $38,205,080 Ford Motor Co 133,729 $3,493,670
Cisco Systems Inc* 499,930 26,933,729 Charles Schwab Corp 98,047 3,443,901
Microsoft Corp* 368,714 25,395,177 Qualcomm Inc* 52,192 3,398,189
Exxon Mobil Corp 244,646 21,819,365 E.I. du Pont de Nemours & Co 73,926 3,354,392
Intel Corp 473,011 21,285,495 Broadcom Corp* 14,925 3,318,947
Pfizer Inc 441,635 19,073,112 Walgreen Co 71,123 3,244,987
Citigroup Inc 318,074 16,738,644 Siebel Systems Inc* 28,905 3,033,218
American International Group 164,249 16,096,402 Honeywell International Inc 56,086 3,018,128
Merck & Co Inc 165,053 14,844,454 Anheuser Busch Co 65,603 3,001,337
Wal-Mart Stores Inc 315,069 14,296,256 The Bank of New York Co Inc 52,118 3,000,042
SBC Communications Inc 241,288 13,919,302 Schlumberger Ltd 39,089 2,975,650
EMC Corp* 152,644 13,594,856 McDonalds Corp 95,618 2,964,158
Oracle Corp* 398,722 13,157,826 Bank One Corp 81,175 2,962,887
Sun Microsystems Inc* 111,135 12,322,093 Federal Home Loan Mtg Corp 49,196 2,951,760
International Business Machines 124,097 12,223,554 Applied Materials Inc* 54,688 2,905,300
Verizon Communications 191,645 11,079,477 Automatic Data Processing Inc 44,368 2,897,785
Coca Cola Co 174,838 10,555,844 Minnesota Mining & Mfg Co 28,298 2,734,294
Nortel Networks Corp 210,253 9,566,511 Comcast Corp Special Cl A* 64,809 2,640,967
Johnson & Johnson 98,419 9,066,850 Gillette Co 75,656 2,638,503
Royal Dutch Pete Co ADR 151,737 9,009,384 Kimberly Clark Corp 38,840 2,563,440
Bristol-Myers Squibb Co 140,255 8,546,789 Network Appliance Inc* 21,337 2,539,103
America Online Inc* 161,791 8,159,120 Marsh & Mclennan Cos, Inc 18,912 2,472,744
Tyco Intl Ltd 124,118 7,035,939 Clear Channel Communications* 41,146 2,471,332
Home Depot Inc 163,036 7,010,548 Fleetboston Financial Corp 64,656 2,456,928
Time Warner Inc 91,321 6,932,177 Colgate Palmolive Co 41,162 2,418,679
Eli Lilly & Co 77,523 6,928,618 General Motors Corp 38,073 2,365,285
Procter & Gamble Inc 92,966 6,641,259 United Technologies Corp 33,717 2,353,868
Hewlett-Packard Co 141,744 6,582,237 Sprint Corp - PCS Group* 61,504 2,344,840
Bellsouth Corp 133,172 6,433,872 Texaco Inc 39,144 2,311,943
Morgan Stanley Dean Witter 79,546 6,388,538 Allstate Corp 56,407 2,270,382
Viacom Inc Cl B* 107,851 6,134,026 Emerson Electric Co 30,601 2,247,261
Philip Morris Cos Inc 166,634 6,102,970 Duke Energy Corp 25,893 2,238,126
AT&T Corp 258,759 5,999,974 Yahoo! Inc* 37,423 2,193,923
Texas Instruments Inc 122,261 5,998,430 MBNA Corp 56,836 2,134,902
American Home Products Corp 92,386 5,866,511 First Union Corp 69,844 2,117,146
Abbott Laboratories 108,894 5,750,964 Unilever N.V. ADR 40,449 2,055,315
American Express Co 94,975 5,698,500 J.P. Morgan & Co Inc 12,143 2,009,666
Fannie Mae 72,375 5,572,875 Nextel Comm Inc Cl A* 51,769 1,989,871
Qwest Communications Intl* 114,346 5,560,074 Safeway Inc* 35,892 1,962,844
Bank of America Corp 114,940 5,524,304 Palm Inc* 36,287 1,943,622
Lucent Technologies Inc 235,290 5,485,198 Associates First Capital Corp 51,530 1,913,051
Wells Fargo & Co 116,139 5,378,687 Cardinal Health Inc 19,814 1,877,376
Schering-Plough Corp 103,910 5,370,848 Solectron Corp* 41,715 1,835,460
Dell Computer Corp* 180,687 5,330,267 Washington Mutual Inc 40,557 1,784,508
JDS Uniphase Corp* 65,403 5,322,169 Alcoa Inc 61,377 1,760,753
Walt Disney Co 146,263 5,238,044 Seagram Co, Ltd 30,702 1,753,852
PepsiCo Inc 102,874 4,982,959 Mellon Financial Corp 35,831 1,728,846
Pharmacia Corp 88,781 4,882,955 Target Corp 62,533 1,727,474
Worldcom Inc* 201,096 4,776,030 PE Biosystems Group 14,609 1,709,253
Corning Inc 61,908 4,735,962 Baxter Intl Inc* 20,584 1,691,748
Medtronic Inc 84,581 4,593,806 Fifth Third Bancorp 32,773 1,683,713
Boeing Co 62,261 4,222,074 AES Corp* 29,750 1,680,875
Amgen Inc* 72,340 4,191,199 Household International Inc 33,296 1,675,205
Enron Corp 50,805 4,169,185 Xilinx Inc* 22,657 1,641,216
Chase Manhattan Corp 87,678 3,989,349 Analog Devices Inc* 24,763 1,609,595
Merrill Lynch & Co 56,225 3,935,750 HCA - The Healthcare Co 39,810 1,589,912
Veritas Software Co* 27,694 3,905,287 Sprint Corp - FON Group 61,728 1,574,064
Chevron Corp 46,403 3,810,846 Exelon Corp 26,146 1,572,013
Motorola Inc 150,828 3,761,273 Electronic Data Systems Corp 33,265 1,561,376
Compaq Computer Corp 120,149 3,653,731 GAP Stores Inc 60,419 1,559,565
</TABLE>
5
<PAGE> 7
UNITED ASSOCIATION S&P 500 INDEX FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2000 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED) SHARES MARKET VALUE SHARES MARKET VALUE
------------------------- ------ ------------ ------ ------------
<S> <C> <C> <C> <C> <C>
CIGNA Corp 12,548 $1,530,229 Eastman Kodak Co 22,271 $999,411
Paychex Inc 26,205 1,485,496 FedEx Corp* 20,841 976,609
First Data Corp 29,580 1,482,698 Tribune Co 25,597 946,689
CVS Corp 27,745 1,468,751 American Electric Power Inc 22,776 945,204
ALLTEL Corp 22,233 1,432,639 National City Corp 43,183 923,037
Dow Chemical Co 46,738 1,431,351 General Mills Inc 21,316 889,943
Tellabs Inc* 28,539 1,425,166 McGraw Hill Cos, Inc 13,863 889,831
State Street Corp 11,334 1,413,803 Campbell Soup Co 30,190 883,057
American General Corp 17,508 1,409,394 Capital One Financial Corp 13,947 880,404
Southern Co 47,408 1,392,610 Caterpillar Inc 25,090 879,718
PNC Bank Corp 20,772 1,389,128 Waste Management Inc 43,863 877,260
Sara Lee Corp 63,944 1,378,793 Tenet Healthcare Corp* 22,063 867,352
AFLAC Inc 18,822 1,375,182 Reliant Energy Inc 20,921 864,299
Firstar Corp 69,241 1,363,182 Interpublic Group of Cos, Inc 20,059 861,283
Linear Technology Corp 21,085 1,361,300 Burlington Nrthrn Santa Fe 32,021 850,558
Northern Trust Corp 15,751 1,344,742 FPL Group Inc 12,672 836,352
Micron Technology* 38,374 1,333,496 Peoplesoft Inc* 19,074 832,401
Agilent Technologies Inc* 28,758 1,331,855 Avon Products Inc 17,099 829,301
Kroger Co* 58,939 1,329,811 Union Pacific Corp 17,586 824,344
Computer Associates Intl Inc 41,293 1,316,214 Raytheon Co 23,961 819,167
Global Crossing Ltd* 55,305 1,306,581 St. Paul Cos Inc 15,961 818,001
UnitedHealth Group Inc 11,938 1,305,719 Radioshack Corp 13,614 811,735
Williams Co Inc 30,828 1,288,996 Medimmune Inc* 12,388 809,865
Adobe Sys Inc 16,930 1,287,738 Baker Hughes Inc 23,280 800,250
Maxim Integrated Products Inc* 19,124 1,268,160 Sears Roebuck & Co 26,487 787,459
US Bancorp 52,281 1,264,547 BB&T Corp 24,697 787,217
International Paper Co 34,134 1,250,155 NIKE Inc Cl B 19,656 785,012
Kohl's Corp* 23,046 1,248,805 Transocean Sedco Forex Inc 14,739 781,167
Lowe's Companies Inc 27,048 1,235,756 Allergan Inc 9,292 781,109
Sysco Corp 23,356 1,218,891 KeyCorp 31,564 779,236
Altera Corp* 29,442 1,205,282 Weyerhaeuser Co 16,579 778,177
Conoco Inc 44,327 1,205,140 Wachovia Corp 14,339 774,306
Comverse Technology Inc* 10,704 1,196,172 Quaker Oats Co 9,445 770,358
Illinois Tool Works Inc 21,277 1,182,203 Limited Inc 30,394 767,448
Sanmina Corp* 10,332 1,181,077 Scientific-Atlanta Inc 11,169 764,378
Hartford Fncl Srvcs Group Inc 15,639 1,164,128 Franklin Resources Inc 17,686 757,668
Halliburton Co 31,283 1,159,426 Aon Corp 18,179 753,292
Omnicom Group Inc 12,560 1,158,660 Molex Inc 13,857 748,278
Gateway Inc* 22,447 1,158,490 ConAgra Foods Inc 34,924 746,501
Dynegy Inc Cl A 24,972 1,156,516 Clorox Co 16,718 746,041
Guidant Corp* 21,763 1,152,079 Computer Sciences Corp* 11,811 744,093
Costco Wholesale Corp* 31,435 1,151,307 PG&E Corp 27,186 732,323
Coastal Corp 15,116 1,140,313 Kellogg Co 28,692 728,060
Gannett Inc 19,609 1,137,322 Best Buy Inc* 14,506 728,020
Phillips Petroleum Co 17,931 1,107,239 PaineWebber Group Inc 10,125 721,406
Anadarko Petroleum Corp 17,164 1,099,354 TXU Corp 19,439 720,458
Lehman Brothers Holdings Inc 17,006 1,096,887 Albertson's Inc 29,973 709,985
Suntrust Bank Inc 22,471 1,096,866 Marriott Intl Inc 17,522 709,641
Carnival Corp 43,517 1,079,766 Stilwell Financial Inc 15,657 701,629
ADC Telecommunications Inc* 50,284 1,074,820 LSI Logic Corp 21,143 695,076
Seagate Technology Inc* 15,271 1,067,061 Mercury Interactive Corp* 6,221 690,531
H.J. Heinz Co 25,217 1,057,538 Loews Corp 7,438 676,393
Dominion Resources Inc 17,755 1,057,532 Lincoln National Corp 13,799 667,527
Chubb Corp 12,440 1,050,403 Comerica Inc 11,064 667,298
Providian Financial Group 10,052 1,045,408 Nabisco Group Holding Corp 23,082 666,493
Harley Davidson Inc 21,454 1,033,815 Entergy Corp 17,301 662,845
General Dynamics Corp 14,217 1,017,404 Wrigley (Wm) Jr Co 8,170 646,962
Southwest Airlines Co 35,624 1,015,284 Nabors Industries Inc* 12,670 644,903
El Paso Energy Corp 16,189 1,014,848 Public Svc Enterprise Grp, Inc 15,441 640,801
Lockheed Martin Corp 28,159 1,009,500 Golden West Financial Corp 11,397 638,944
</TABLE>
6
<PAGE> 8
UNITED ASSOCIATION S&P 500 INDEX FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2000 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED) SHARES MARKET VALUE SHARES MARKET VALUE
------------------------- ------ ------------ ------ ------------
<S> <C> <C> <C> <C> <C>
Danaher Corp 10,063 $635,227 Kerr-McGee Corp 6,611 $431,781
Biogen Inc* 10,519 633,112 Synovus Financial Corp 19,821 427,390
USA Education Inc 11,232 627,588 FirstEnergy Corp 16,498 426,886
Delphi Automotive Sys Corp 39,958 626,841 Watson Pharmaceuticals Inc* 6,810 426,051
May Department Stores Co 23,561 618,476 Cincinnati Financial Corp 11,575 425,381
Dover Corp 14,399 611,058 PPL Corp 10,177 419,165
Deere & Co 16,546 609,100 Praxair Inc 11,238 418,616
Air Products & Chemicals Inc 16,219 605,171 Northrop Grumman Corp 4,924 413,616
Xcel Energy Inc 23,657 604,732 Columbia Energy Group 5,741 412,993
Cendant Corp* 50,304 603,648 Union Carbide Corp 9,479 407,597
Aetna Inc 10,362 599,053 Avery Dennison Corp 7,971 402,535
USX-Marathon Group 21,998 598,071 PerkinElmer Inc 3,331 398,054
Becton Dickinson & Co 17,782 595,697 Amerada Hess Corp 6,419 397,978
TJX Companies Inc 21,834 594,976 T Rowe Price & Associates Inc 8,481 397,017
Masco Corp 31,660 591,646 Xerox Corp 47,029 396,807
ALZA Corp* 7,253 587,040 CSX Corp 15,450 391,078
Unocal Corp 17,158 585,517 Ameren Corp 9,708 385,893
Edison International 24,418 582,980 Mattel Inc 29,821 385,809
McKesson HBOC Inc 19,928 559,230 AmSouth Bancorporation 27,662 385,539
Starbucks Corp* 12,428 555,376 Conexant Systems Inc* 14,599 384,136
Pitney Bowes Inc 18,697 555,067 Southtrust Corp 11,863 384,065
Burlington Resources Inc 15,374 553,464 Norfolk Southern Corp 26,988 381,206
Coca Cola Enterprises Inc 30,034 551,875 CenturyTel Inc 9,896 380,996
PPG Industries Inc 12,306 549,155 Newell Rubbermaid Inc 19,840 380,680
Consolidated Edison Inc 15,563 547,623 Teradyne Inc* 12,121 378,781
Hershey Foods Corp 9,783 531,339 Barrick Gold Corp 27,911 373,310
Textron Inc 10,484 528,787 Dow Jones Inc 6,329 372,620
Rockwell International Corp 13,424 527,731 Lexmark Intl Group Inc* 9,045 370,845
Ralston Purina Co 21,712 526,516 DTE Energy Co 10,244 370,064
Wellpoint Health Networks Inc* 4,493 525,400 Florida Progress Corp 6,950 369,654
Convergys Corp* 11,982 521,966 Regions Financial Corp 15,472 364,559
King Pharmaceuticals Inc* 11,628 521,080 Dollar General Corp 23,450 363,475
Occidental Petroleum Corp 26,022 517,187 TRW Inc 8,621 362,082
IMS Health Inc 21,689 512,403 Keyspan Corp 10,265 361,200
MBIA Inc 7,043 511,938 Johnson Controls Inc 6,055 361,029
Bed Bath & Beyond Inc* 19,786 510,726 Sapient Corp* 10,148 360,888
Progressive Corp 5,185 509,426 Ecolab Inc 9,195 360,329
MGIC Investment Corp 7,476 509,303 Tiffany & Co 8,417 359,301
Jefferson Pilot Corp 7,396 508,475 Power-One Inc* 5,000 354,687
Fort James Corp 15,213 501,078 Eaton Corp 5,192 353,381
Bear Stearns Co 8,220 498,338 BMC Software Inc* 17,211 349,598
Archer Daniels Midland Co 45,111 496,221 Cabletron Systems Inc* 12,837 348,204
Alcan Aluminum Ltd 15,499 489,187 Equifax Inc 10,009 345,310
Federated Dept Stores Inc* 14,882 484,595 Cinergy Corp 11,274 345,266
UnumProvident Corp 17,023 480,900 AMR Corp* 10,500 343,875
Advanced Micro Devices Inc* 20,947 473,926 Fortune Brands Inc 11,553 340,091
Devon Energy Corp 9,388 473,155 Union Planters Corp 9,920 335,420
Staples Inc* 33,113 471,860 Sabre Holdings Corp* 9,895 330,864
Boston Scientific Corp* 29,281 466,666 St Jude Medical Inc* 5,974 328,570
Rohm & Haas Co 15,471 465,097 CIT Group Inc 18,840 328,523
Summit Bancorp 12,369 463,837 Parker-Hannifin Corp 7,935 328,311
C P & L Energy Inc 11,290 455,128 Healthsouth Corp* 27,325 327,900
Apache Corp 8,080 446,925 Thermo Electron Corp* 11,259 326,511
Apple Computer Inc* 22,845 446,905 Georgia-Pacific Group 12,098 325,134
New York Times Co 12,098 444,601 Tricon Global Restaurants Inc* 10,770 323,100
Constellation Energy Corp 10,577 440,929 B.F Goodrich Co 7,755 317,470
Biomet Inc 12,085 437,326 Novellus Sys Inc* 7,738 316,774
Ingersoll-Rand Co 11,561 436,428 National Semiconductor Corp* 12,183 316,758
Delta Air Lines Inc 9,219 435,598 Torchmark Corp 9,278 309,073
KLA-Tencor Corp* 12,847 434,389 Sempra Energy 14,846 307,127
</TABLE>
7
<PAGE> 9
UNITED ASSOCIATION S&P 500 INDEX FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2000 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED) SHARES MARKET VALUE SHARES MARKET VALUE
------------------------- ------ ------------ ------ ------------
<S> <C> <C> <C> <C> <C>
UST Inc 12,024 $303,606 Circuit City Store Inc 14,379 $190,522
Moody's Corp 11,390 299,699 Pall Corp 8,800 189,750
Countrywide Credit Inds Inc 7,997 299,388 US Airways Group Inc* 5,007 189,014
Vulcan Materials Co 7,087 297,654 Fluor Corp 5,380 188,300
Brwon Forman Corp 4,842 294,757 Placer Dome Inc 23,050 187,281
NCR Corp* 6,823 294,242 Engelhard Corp 8,917 186,142
Charter One Financial Inc 12,816 293,967 Wendy's Intl Inc 8,410 182,917
Tosco Corp 10,191 291,717 Liz Claiborne Inc 4,141 175,992
Toys R Us Inc* 16,949 291,311 Temple Inland Inc 3,932 175,957
Knight-Ridder Inc 5,783 290,596 Maytag Corp 5,916 169,346
GPU Inc 8,717 288,206 American Pwr Conversion Corp* 13,078 169,197
Willamette Industries Inc 7,883 286,251 Millipore Corp 3,212 168,630
Sealed Air Corp* 5,906 284,226 Stanley Works 6,325 168,403
Harcourt General Inc 5,058 283,501 Adolph Coors Co Cl B 2,613 166,415
Citrix Systems Inc* 12,739 281,850 Ashland Inc 5,068 165,977
Unisys Corp* 21,970 280,117 FMC Corp* 2,163 164,388
WPP Group PLC 4,133 276,411 Rowan Cos Inc* 6,464 162,812
Genuine Parts Co 12,571 267,919 Newmont Mining Corp 11,865 160,919
AutoZone Inc* 9,968 267,267 Conseco Inc 23,126 160,437
Phelps Dodge Corp 5,709 266,896 Nordstrom Inc 9,678 159,082
Avaya Inc* 19,607 263,469 Centex Corp 4,209 155,733
Pinnacle West Capital Corp 5,997 260,495 Bausch & Lomb Inc 3,962 152,785
Harrah's Entertainment Inc* 9,027 258,398 Andrew Corp* 5,763 151,639
Ceridian Corp* 10,275 256,875 C.R. Bard Inc 3,615 151,378
Dana Corp 11,522 255,644 SuperValu Inc 9,799 150,660
Huntington Bancshares Inc 17,777 255,544 Navistar Intl Corp* 4,467 147,690
Cooper Industries Inc 6,656 254,592 Humana Inc* 11,878 144,021
Sherwin Williams Co 11,716 254,091 Hasbro Inc 13,212 142,029
Old Kent Financial Corp 9,153 253,424 Hercules Inc 7,534 137,966
Sigma Aldrich Corp 7,006 250,464 Alberto-Culver Co Cl B 3,975 133,411
Hilton Hotels Corp 26,103 247,978 Great Lakes Chemical Corp 3,992 133,233
Block H&R Inc 6,939 247,636 Allegheny Technologies Inc 6,360 128,790
Tektronix Inc* 3,353 238,901 Pactiv Corp* 12,129 127,354
Parametric Technology Corp* 19,242 236,917 Brunswick Corp 6,455 125,469
Eastman Chemical Co 5,518 236,584 Intl Flavors&Fragrances Inc 7,410 124,117
Paccar Inc 5,534 232,774 Allied Waste Industries Inc* 13,379 123,756
Black & Decker Corp 6,123 230,378 Dun & Bradstreet Corp* 5,695 123,154
Whirlpool Corp 5,251 228,419 Eastern Enterprises 1,913 123,149
Leggett & Platt Inc 13,893 227,498 Crane Co 4,659 122,008
V. F. Corp 8,323 227,322 Manor Care Inc* 7,288 121,619
Safeco Corp 9,171 221,824 Nicor Inc 3,343 118,050
CMS Energy Corp 8,137 219,699 Deluxe Corp 5,182 116,919
J.C. Penney Co Inc 18,401 215,062 Meredith Corp 3,658 116,141
Nucor Corp 6,148 213,259 Boise Cascade Corp 4,046 116,070
W.W. Grainger Inc 6,610 211,107 Adaptec Inc* 7,271 114,973
Novell Inc* 23,382 210,438 Quintiles Transnational Corp* 8,137 113,409
Mead Corp 7,271 210,405 Snap-On Inc 4,168 106,544
Inco Ltd* 13,486 208,190 Pulte Corp 3,052 101,670
Niagara Mohawk Holdings Inc* 12,975 207,600 Kaufman & Broad Home Corp 3,374 100,376
Kmart Corp* 34,721 206,156 USX-U.S. Steel Group 6,261 99,785
Darden Restaurants Inc 9,158 206,055 Cummins Engine Inc 2,906 98,804
Goodyear Tire & Rubber Co 11,060 204,610 Bemis Inc 3,733 96,591
ITT Industries Inc 6,220 202,539 Autodesk Inc 4,297 94,803
Westvaco Corp 7,096 202,236 Consolidated Stores Corp* 7,832 93,005
Winn-Dixie Stores Inc 10,450 201,163 Freeport-McMoRan C&G Inc Cl B* 11,527 91,496
Compuware Corp* 25,412 200,120 Ryder Systems Inc 4,424 87,374
Visteon Corp 10,932 193,360 ONEOK Inc 2,201 87,215
Office Depot Inc* 23,156 192,484 Peoples Energy Corp 2,516 86,488
R.R. Donnelley & Sons Co 8,908 191,522 Reebok International Ltd* 4,003 86,315
Sunoco Inc 6,365 190,552 American Greetings Corp 4,560 82,935
</TABLE>
8
<PAGE> 10
UNITED ASSOCIATION S&P 500 INDEX FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2000 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED) SHARES MARKET VALUE SHARES MARKET VALUE
------------------------- ------ ------------ ------ ------------
<S> <C> <C> <C> <C> <C>
Crown Cork & Seal Co Inc 9,069 $82,755 Worthingon Inds Inc 6,279 $60,043
Dillard's Inc Cl A 7,445 78,172 National Services Inds Inc 2,909 59,453
Homestake Mining Co 18,430 76,024 Cooper Tire & Rubber Co 5,399 59,052
Ball Corp 2,144 75,308 Briggs & Stratton Corp 1,642 58,599
Tupperware Corp 4,137 70,846 McDermott International Inc 4,240 41,075
Potlatch Corp 2,051 68,708 Russell Corp 2,376 38,016
Louisiana Pacific Corp 7,572 64,362 Polaroid Corp 3,160 31,798
Owens-Illinois Inc* 10,596 62,914 Springs Industries Inc Cl A 1,284 30,254
Thomas & Betts Corp 4,081 61,725 Bethlehem Steel Corp* 9,294 26,720
Timken Co 4,389 61,720 W.R. Grace & Co* 5,086 19,390
Long's Drug Stores Corp 2,779 60,791 Armstrong Holdings Inc 2,847 8,185
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL COMMON STOCKS 888,168,209
(Cost $889,925,122) ------------
INVESTMENT COMPANIES (5.4%)
SPDR Trust 82,282 11,771,469
Goldman Sachs Financial Square Prime 39,532,059 39,523,059
---------- ------------
TOTAL INVESTMENT COMPANIES 51,294,528
(Cost $51,107,059) ------------
TOTAL INVESTMENTS (98.7%) 939,462,737
(Cost $941,032,181)
OTHER ASSETS AND LIABILITIES (1.3%)
Other assets 21,380,984
Accrued investment advisory fee (7,968)
Accrued administration fee (83,070)
Accrued custody fee (3,984)
Accrued 12b-1 fee (256)
Other liabilities (8,965,967)
------------
12,319,739
------------
TOTAL NET ASSETS (100%) $951,782,476
============
NET ASSETS:
Paid in capital 953,920,814
Accumulated net realized gain on investments 868,902
Accumulated net realized loss on futures (727,993)
Net unrealized depreciation on investments (1,569,444)
Net unrealized depreciation on futures (1,571,644)
Undistributed net investment income 861,841
------------
TOTAL NET ASSETS $951,782,476
============
NET ASSET VALUE PER SHARE
Net Assets
Class I $948,123,426
Class II $ 3,659,050
Shares outstanding
Class I 91,190,345
Class II 352,162
Net asset value per share
Class I $ 10.40
Class II $ 10.39
</TABLE>
* Non-income producing security.
Cl- Class
ADR - American Depositary Receipt
See notes to financial statements.
9
<PAGE> 11
UNITED ASSOCIATION S&P 500 INDEX FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED OCTOBER 31, 2000 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest 901,675
Dividends 4,420,108
Foreign taxes withheld (21,895)
-----------
Total Income 5,299,888
-----------
EXPENSES:
Investment advisory fee (Note 5) 41,555
Administration fee (Note 5) 442,395
Custody fee 20,777
12b-1 fee - Class II (Note 5) 1,291
-----------
Total expenses 506,018
Waiver of expenses - Class II (Note 5) (839)
-----------
Net Expenses 505,179
-----------
NET INVESTMENT INCOME 4,794,709
-----------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investments 900,440
Net realized loss on futures (1,072,812)
Change in net unrealized appreciation/depreciation on investments (15,623,397)
Change in net unrealized appreciation/depreciation on futures (1,234,413)
-----------
NET REALIZED AND UNREALIZED LOSS (17,030,182)
-----------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS (12,235,473)
-----------
</TABLE>
See notes to financial statements.
10
<PAGE> 12
UNITED ASSOCIATION S&P 500 INDEX FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the Period
Six Months Ended March 2, 2000
October 31, 2000 (Inception)
(Unaudited) to April 30, 2000
---------------- -----------------
<S> <C> <C>
INCREASE/(DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 4,794,709 $ 718,226
Net realized gain/(loss) on investments and futures (172,372) 313,281
Net change in unrealized appreciation/depreciation
on investments and futures (16,857,810) 13,716,722
------------- -------------
Net Increase/(Decrease) In Net Assets From Operations (12,235,473) 14,748,229
------------- -------------
DISTRIBUTIONS:
Dividends from net investment income
Class I (4,638,395) 0
Class II (12,699) 0
------------- -------------
Net Decrease in Net Assets from Distributions (4,651,094) 0
------------- -------------
SHARE TRANSACTIONS (NOTE 2):
Proceeds from sale of shares 411,771,436 564,968,885
Reinvested dividends 4,650,991 0
Cost of shares redeemed (27,470,498) 0
------------- -------------
Net Increase in Net Assets from Share Transactions 388,951,929 564,968,885
------------- -------------
NET INCREASE IN NET ASSETS 372,065,362 579,717,114
------------- -------------
NET ASSETS:
Beginning of Period 579,717,114 0
------------- -------------
End of Period* $ 951,782,476 $ 579,717,114
============= =============
*Includes undistributed net investment income of: $ 861,841 $ 718,226
------------- -------------
</TABLE>
See notes to financial statements.
11
<PAGE> 13
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 SIX MONTHS FOR THE PERIOD FOR THE SIX MONTHS FOR THE PERIOD
ENDED MARCH 2, 2000 ENDED MARCH 28, 2000
OCTOBER 31, 2000(3) (INCEPTION) TO OCTOBER 31, 2000 (INCEPTION) TO
(UNAUDITED) APRIL 30, 2000 (UNAUDITED) APRIL 30, 2000
------------------- -------------- ------------------ --------------
<S> <C> <C> <C> <C>
SELECTED PER-SHARE DATA:
Net asset value - beginning of the period $ 10.54 $ 10.00 $ 10.53 $ 11.05
----------- ----------- ----------- -----------
Income from investment operations:
Net investment income 0.06 0.01 0.05 0.00
Net realized and unrealized gain/(loss) (0.14) 0.53 (0.14) (0.52)
----------- ----------- ----------- -----------
Total income from investment operations (0.08) 0.54 (0.09) (0.52)
----------- ----------- ----------- -----------
Distributions:
Distributions from net investment income (0.06) 0.00 (0.05) 0.00
Distributions from net realized gain on
investments 0.00 0.00 0.00 0.00
----------- ----------- ----------- -----------
Total distribution (0.06) 0.00 (0.05) 0.00
----------- ----------- ----------- -----------
Net asset value - end of period $ 10.40 $ 10.54 $ 10.39 $ 10.53
=========== =========== =========== ===========
Total Return (0.80)% 5.40% (0.82)% (4.71)%
=========== =========== =========== ===========
RATIOS AND SUPPLEMENTAL DATA:
Net assets - end of period (000) $ 948,123 $ 579,314 $ 3,659 $ 403
=========== =========== =========== ===========
Ratio of expenses to average net assets(1) 0.12% 0.13% 0.16% 0.15%
=========== =========== =========== ===========
Ratio of expenses to average net assets without
fee waivers(1) N/A N/A 0.22% 0.21%
=========== =========== =========== ===========
Ratio of net investment income to average net
assets(1) 1.16% 0.97% 1.13% 0.99%
=========== =========== =========== ===========
Ratio of net investment income to average net assets
without fee waivers(1) N/A N/A 1.06% 0.93%
=========== =========== =========== ===========
Portfolio turnover rate(2) 1% 2% 1% 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 six months ended October 31, 2000 were
$362,979,940 and $6,443,640, respectively.
(3) Per share amounts calculated based on the average shares outstanding during
the period.
See notes to financial statements.
12 & 13
<PAGE> 14
UNITED ASSOCIATION S&P 500 INDEX FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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 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 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> 15
UNITED ASSOCIATION S&P 500 INDEX FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (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 October 31, 2000, there was an unlimited number of no par value
shares of beneficial interest authorized. Transactions in shares of beneficial
interest were as follows:
FOR THE SIX MONTHS ENDED OCTOBER 31, 2000
<TABLE>
<CAPTION>
AMOUNT SHARES
------------- -------------
<S> <C> <C>
CLASS I
Shares sold $ 404,504,520 37,979,211
Share issued as reinvestment of dividends 4,638,351 442,503
Shares redeemed (23,459,473) (2,179,502)
------------- -------------
Net increase in shares $ 385,683,398 36,242,212
============= =============
CLASS II
Shares sold $ 7,266,916 680,771
Share issued as reinvestment of dividends 12,640 1,202
Shares redeemed (4,011,025) (368,073)
------------- -------------
Net increase in shares $ 3,268,531 313,900
============= =============
</TABLE>
FOR THE PERIOD ENDED APRIL 30, 2000
<TABLE>
<CAPTION>
AMOUNT SHARES
------------ ----------
<S> <C> <C>
CLASS I
Shares sold $564,565,250 54,948,133
Share issued as reinvestment of dividends 0 0
Shares redeemed 0 0
------------ ----------
Net increase in shares $564,565,250 54,948,133
============ ==========
CLASS II
Shares sold $ 403,635 38,262
Share issued as reinvestment of dividends 0 0
Shares redeemed 0 0
------------ ----------
Net increase in shares $ 403,635 38,262
============ ==========
</TABLE>
15
<PAGE> 16
UNITED ASSOCIATION S&P 500 INDEX FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
3. UNREALIZED APPRECIATION AND DEPRECIATION ON INVESTMENTS (TAX BASIS)
<TABLE>
<S> <C>
As of October 31, 2000:
Gross appreciation (excess of value over tax cost) $ 112,424,680
Gross depreciation (excess of tax cost over value) (114,036,939)
-------------
Net unrealized depreciation $ (1,612,259)
=============
Cost of investments for income tax purposes $ 941,074,996
=============
</TABLE>
4. FUTURES CONTRACTS
S&P 500 Index financial futures contracts open at October 31, 2000 were
as follows:
<TABLE>
<CAPTION>
NUMBER OF UNREALIZED
CONTRACTS EXPIRATION DATE COST DEPRECIATION
--------- --------------- ---- ------------
<S> <C> <C> <C>
141 December 2000 $987 $(1,571,644)
</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 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.
Shareholders holding more than 10% of the outstanding shares as of
October 31, 2000, constituted 75.77% of the Fund.
16
<PAGE> 17
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.
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
[ALPS LOGO]
MUST BE ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS.
FOR MORE INFORMATION, PLEASE CALL 1-888-766-8043.
