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Previous: GRIFFIN FUNDS INC, N-30D, 1995-12-11 |
Next: DEFINED ASSET FUNDS MUNICIPAL INV TR FD MON PYMT SER 563, 497, 1995-12-11 |
Table of Contents
LETTER TO SHAREHOLDERS 3
COMMENTS FROM
INVESTMENT ADVISOR 5
PORTFOLIO INVESTMENT RETURNS
Small/Mid Cap Equity Portfolio 6
Core Equity Portfolio 7
Balanced Portfolio 8
Intermediate Fixed Income Portfolio9
SCHEDULEs OF INVESTMENTS
Small/Mid Cap Equity Portfolio 10
Core Equity Portfolio 13
Balanced Portfolio 16
Intermediate Fixed Income Portfolio20
STATEMENTs OF
ASSETS AND LIABILITIES 22
STATEMENTs OF OPERATIONS 23
STATEMENTs OF CHANGES
IN Net ASSETS 24
FINANCIAL HIGHLIGHTS 26
NOTES TO FINANCIAL STATEMENTS 28
INDEX DESCRIPTIONS 29
Directory of Funds
service providers 31
601 Union Street, Suite 2801
Seattle, Washington 98101
(800) 248-6314
This report and the financial statements contained herein are provided for the
general information of the shareholders of the Rainier Investment Management
Mutual Funds. This report is not authorized for distribution to prospective
investors in the Funds unless preceded or accompanied by an effective
prospectus. For more information on any Fund, including charges and expenses,
call (800) 248-6314 for a free prospectus. Read it carefully before you invest
or send money.
<PAGE>
LETTER TO SHAREHOLDERS
Dear Shareholders, As the Chairman of Rainier Investment Management No-Load
Mutual Funds and a fellow shareholder in the Funds, I d like to express my
continued appreciation for your valued investment in one of the four Portfolios
covered in this report. If you are a new shareholder, welcome! This report,
known as the Semi-Annual Report, contains unaudited financial statements for the
period ending September 30, 1995. The audited Annual Report is produced as of
March 31 of each year. As you review this Semi-Annual Report, you will find
commentary describing the general environment of the equity and fixed-income
capital markets throughout the last six months. Also, you will see commentaries
for each of the four Portfolios, which provide investment highlights, followed
by investment total returns. Finally, this Semi-Annual Report contains financial
statements detailing the expenses of the Portfolios and the Portfolio holdings
as of September 30. I am pleased to report to the shareholders that the Funds
continue to operate to our satisfaction on all fronts. Asset growth has been
very steady. The back office operations are running smoothly. Most importantly,
investment returns have been strong. In fact, in September Smart Money named the
Small/Mid Cap Portfolio as one of the 6 Best New Funds out of 1500. We feel that
it is important to remind you that nearly all of the principals and employees of
the Fund s advisor, Rainier Investment Management, Inc.(r) (RIM) are
shareholders in the Portfolios. By policy, RIM employees are not allowed to
purchase individual securities for their own accounts. The Advisor voluntarily
implemented this Code of Ethics to eliminate the slightest appearance of
conflict of interest. The policy, which allows investments in mutual fund
shares, encourages our employees to be shareholders in the Rainier Investment
Management Mutual Funds. We are interested in your ongoing feedback. If you have
any ideas that can help us improve our service to you, please call us. Thank you
again for your investment in the Rainier Investment Management Family of No-Load
Mutual Funds. We look forward to the continued challenge and opportunity to meet
your investment needs.
Sincerely,
J. Glenn Haber
Chairman
Rainier Investment Management Mutual Funds
<PAGE>
COMMENTS FROM INVESTMENT ADVISOR
About the Advisor: The Investment Advisor to the Funds is Rainier Investment
Management, Inc. located in Seattle, Washington. RIM is one of America s leading
investment advisory firms, managing over $1.7 billion of discretionary assets
for primarily institutional clients.
Equity Comments
The six-month period ended September 30, 1995 was a very fruitful one for
equity investors. Economic factors, notably strong corporate earnings growth and
a formidable interest rate environment, joined to boost most market indices by
5% 10% in both the June and September quarters. The flow of funds into the
domestic equity market added fuel to the fire. In the second quarter alone,
mutual funds put about $30 billion of incremental funds to work in the stock
market. Foreign investors acquired close to $5 billion net in the September
quarter. Meanwhile, mergers and acquisitions have reduced the supply of shares
at a greater rate than new equity financings have increased the number shares.
The simple laws of supply and demand worked to the benefit of stocks during the
period. Despite the strong move of the overall market, there was a great deal of
contrast within sectors and between one sector and another. Six-month returns
were ten percent or so in both the financial and technology sectors. But the
credit cyclical, consumer cyclical, and energy sectors all had negative returns
of a similar amount. Retail, pollution control, and building material stocks
were severely depressed. Semiconductor, fertilizer, and specialized finance
company shares, as a group, moved off the chart on the upside. It will be
difficult for the market to provide an encore similar to the performance of the
past six months. Even so, we envision attractive investment opportunities
developing within each sector of the market. We continue to emphasize a
growth-at-a-reasonable-price strategy, and broad diversification, with an
ownership of securities in all major sectors of the market.
James R. Margard, CFA
David A. Veterane, CFA
Fixed Income Comments
The bond markets extended the winter rally into the second and third quarters of
1995 as fresh evidence appeared that the economic expansion was slowing and that
Congress and the President were moving toward accepting a budget balancing plan.
Yields dropped across all maturities during the six-month period with the move
at longer maturities being most dramatic. The 30-year U.S. Treasury, for
example, yielded 7.4% on March 31, but dropped to 6.5% by the end of the
September quarter. The Federal Reserve cut the federal funds rate to 5.75% on
July 6 and, with the expectation of further easing, the market held firm through
quarter end. Most of the price appreciation came during the June quarter, with
only coupon interest contributing to returns during the quarter ending September
30. The current environment of uncertainty has created a high degree of daily
volatility. The bulls paint a continued moderate inflationary picture, while the
bears point to gains in non-manufacturing employment and the belief that the
consumer still has some purchasing power to boost economic growth. The corporate
bond market has benefited all year from a growing economy, the prospect for a
longer than usual economic cycle, and the lack of substantial new issues. All
these factors have combined to move spreads between corporates and treasuries to
the tightest levels in many years. They still represent good incremental value,
because the overall level of interest rates is low. Going forward to year end we
would expect to see no real backup in the market. Although choppy on a
short-term basis, relative stability in rates may be the theme at year end.
Patricia L. Frost, CEO
Michael E. Raney, CFA
<PAGE>
PORTFOLIO INVESTMENT RETURNS
Small/Mid Cap Equity Portfolio
Objective: The Small/Mid Cap Equity Portfolio seeks to provide investors with
maximum long-term capital appreciation. The Investment Advisor constructs a
diversified portfolio of small and medium capitalization common stocks.
Commentary: The last six months was an excellent one for small and
mid-capitalization stocks, especially during the summer months. Their large
capitalization brethren led the performance charge in the first few months of
calendar 1995, only to be eclipsed by a surge in the value of second-tier shares
from May through mid-September. Financial stocks benefited from a nearly ideal
interest rate environment and a wave of mergers in the banking industry.
Technology stocks surged as a result of major new product developments and, in
many instances, explosive earnings growth. Extraordinary share price volatility
in this latter sector, however, led to significant profit taking and share price
erosion as the period came to a close. Very poor results in a number of basic
industry and retail stocks served as a reminder of the importance of balance
sheet integrity and the economic environment to these groups. Standout price
performance during this period came from Tektronix, Dole Foods, IBP, Cadence
Design Systems, and the St. Paul Cos.
Comparison of Change in Value of $10,000
(Graphic Omitted)
<TABLE>
<CAPTION>
Total Returns for Periods Ending September 30, 1995
3 Months 9 Months 1 Year Inception to 9/30/95*
<S> <C> <C> <C> <C>
Small/Mid Cap Equity Portfolio 10.3% 36.8% 37.2% 30.7%
Standard & Poor s 500 Stock Index 8.0 29.8 29.8 24.8
Russell Mid-Cap Index(tm) 8.9 30.3 27.1 22.7
Consumer Price Index 0.5 2.3 2.5 2.8
<FN>
*Average annual return since 5/10/94.
</FN>
</TABLE>
See page 29 for index descriptions. Total return assumes
reinvestment of dividends and distributions. Past performance is not predictive
of future results. Investment return will fluctuate so that an investor s
shares, when redeemed, may be worth more or less than their original cost. The
Advisor is currently limiting fund expenses, which enhances return.
<PAGE>
CORE EQUITY PORTFOLIO
Objective: The Core Equity Portfolio seeks to maximize long-term capital
appreciation. The Fund invests primarily in a diversified portfolio of common
stocks of U.S. companies. Commentary: Stocks continued on their merry way in the
last six months. But the ride was not without bumps, as sector rotations were
pronounced and wide savings in the prices of individual securities were the rule
rather than the exception. Also, a wave of severe profit taking hit many shares
in the second half of September, erasing six-month gains in a great number of
stocks. When all was said and done, however, it was an excellent period for
stocks, especially those in the technology and finance sectors. Energy, basic
industry and consumer cyclical shares were less fortunate, with many issues
falling well below their prices at the beginning of the year. The Portfolio
enjoyed wide appreciation in a number of stocks, notably AT&T, Merck, Pepsico,
Hewlett Packard and General Electric. The Portfolio was essentially fully
invested, sector neutral, and broadly diversified during the period, in keeping
with the Portfolio s overall philosophy.
Comparison of Change in Value of $10,000
(Graphic Omitted)
<TABLE>
<CAPTION>
Total Returns for Periods Ending September 30, 1995
3 Months 9 Months 1 Year Inception to 9/30/95*
<S> <C> <C> <C> <C>
Core Equity Portfolio ................. 10.8% 37.5% 36.9% 30.1%
Standard & Poor s 500 Stock Index ...... 8.0 29.8 29.8 24.8
Consumer Price Index ................... 0.5 2.3 2.5 2.8
<FN>
*Average annual return since 5/10/94.
</FN>
</TABLE>
See page 29 for index descriptions. Total return assumes reinvestment of
dividends and distributions. Past performance is not predictive of future
results. Investment return will fluctuate so that an investor s shares, when
redeemed, may be worth more or less than their original cost. The Advisor is
currently limiting fund expenses, which enhances return.
BALANCED PORTFOLIO
Objective: The Balanced Portfolio seeks to provide investors with a balance of
long-term capital appreciation and current income. The Fund invests primarily in
a diversified portfolio of common stocks of U.S. companies, investment grade
intermediate-term debt securities and cash equivalent securities. Commentary:
The Portfolio benefited from a constructive environment for both equities and
fixed-income assets in the six months ended September 30. Interest rates edged
down, thanks to low inflation rates and modest economic growth. This served as a
direct benefit to bond prices, and an indirect enhancement to stock valuations.
Corporate profit reports generally made for excellent reading, which gave
equities further reason to advance. During the period, stocks averaged a 55% to
60% weighting of the Portfolio s overall assets; fixed-income securities
represented 30% to 35%; and short-term securities 5% to 15%. As always, equities
were broadly diversified, with no particular sector being significantly
underweighted or overweighted. AT&T, the Portfolio s largest stock holding, was
a standout performer due to the company s announced corporate restructuring. The
fixed-income portion of the Portfolio was broadly diversified, and emphasized
high quality, and intermediate-term securities.
Comparison of Change in Value of $10,000
(Graphic Omitted)
<TABLE>
<CAPTION>
Total Returns for Periods Ending September 30, 1995
3 Months 9 Months 1 Year Inception to 9/30/95*
<S> <C> <C> <C> <C>
Balanced Portfolio ........................................ 6.9% 25.4% 25.3% 20.4%
Balanced Index (50/40/10) .................................. 4.8 19.5 19.7 16.4
Standard & Poor s 500 Stock Index ......................... 8.0 29.8 29.8 24.8
Lehman Brothers Government/Corporate Intermediate Bond Index 1.7 11.4 11.3 9.3
Consumer Price Index ....................................... 0.5 2.3 2.5 2.8
*Average annual return since 5/10/94.
</TABLE>
See page 29
for index descriptions. Total return assumes reinvestment of dividends and
distributions. Past performance is not predictive of future results. Investment
return will fluctuate so that an investor s shares, when redeemed, may be worth
more or less than their original cost. The Advisor is currently limiting fund
expenses, which enhances return.
<PAGE>
INTERMEDIATE FIXED INCOME PORTFOLIO
Objective: The Intermediate Fixed Income Portfolio seeks to provide investors
with current income. The Fund invests primarily in a diversified portfolio of
investment grade, intermediate-term debt securities providing current income.
The Portfolio does not use risky derivative instruments. Commentary: For the
six-month period ending September, the fixed-income markets started strongly but
ended within a narrow trading range. Consistent with the overall fixed-income
markets, most of the price appreciation in the Portfolio came during the June
quarter, with only coupon interest contributing to returns during the quarter
ending September 30. The Advisor s commitment to high quality intermediate bonds
worked well, producing solid gains with lower risk. The Fund is now positioned
in over forty issues with 27% invested in high quality corporate bonds, 66% in
governments/agencies and 7% in short-term cash. The majority of the corporate
bonds are in the financial area which has performed well. The average credit
quality remains at AA and the average maturity is 3.9 years. Purchases during
the period were concentrated in U.S. Treasuries with maturities of five to eight
years. Unless something dramatic occurs in the market, the Portfolio plans to
maintain this portfolio structure through year-end.
Comparison of Change in Value of $10,000
(Graphic Omitted)
<TABLE>
<CAPTION>
Total Returns for Periods Ending September 30, 1995
3 Months 9 Months 1 Year Inception to 9/30/95*
<S> <C> <C> <C> <C>
Intermediate Fixed Income Portfolio ....................... 1.4% 9.8% 9.8% 8.0%
Lehman Brothers Government/Corporate Intermediate Bond Index 1.7 11.4 11.3 9.3
91-Day Treasury Bill Index ................................... 1.4 4.3 5.7 5.3
Consumer Price Index ......................................... 0.5 2.3 2.5 2.8
<FN>
*Average annual return since 5/10/94.
</FN>
</TABLE>
See page 29 for index descriptions. Total return assumes reinvestment of
dividends and distributions. Past performance is not predictive of future
results. Investment return will fluctuate so that an investor s shares, when
redeemed, may be worth more or less than their original cost. The Advisor is
currently limiting fund expenses, which enhances return.
SCHEDULES OF INVESTMENTS
Small/Mid Cap Equity Portfolio
September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
Variable rate Demand Notes
(2.31%) Par Value Value
<S> <C> <C>
General Mills
5.4600% 12-31-2031 $160,000 $ 160,000
Pitney Bowes
5.4671% 12-31-2031 135,000 135,000
Sara Lee
5.4469% 12-31-2031 158,536 158,536
Wisconsin Electric
5.5082% 12-31-2031 115,000 115,000
-------
TOTAL DEMAND NOTES
(cost $568,536) $ 568,536
----------
Common Stocks
(96.29%) Shares Value
Autos & Transportation (5.86%)
Air Transportation (2.14%)
Federal Express 3,600 $298,800
Southwest Airlines Co. 9,000 227,250
-------
Total Air Transportation 526,050
-------
Auto Parts/Original Equipment (2.87%)
Eaton Corp. 5,200 275,600
TRW Inc. 5,800 431,375
-------
Total Auto Parts/
Original Equipment 706,975
-------
Tires & Rubber (0.24%)
Goodyear Tire & Rubber 1,500 59,063
------
Truckers (0.61%)
TNT Freightways Corp. 8,000 151,000
-------
Total Autos &
Transportation 1,443,088
---------
Consumer Discretionary (8.34%)
Consumer Electronics (1.26%)
Harman International 6,350 311,150
-------
Electrical/Household Appliances (1.02%)
Maytag Corp. 14,300 250,250
-------
Household Equipment & Products (1.73%)
Black & Decker Corp. 12,500 $426,563
-------
Publishing/Miscellaneous (3.70%)
Devon Group Inc. 9,000 389,250
Houghton Mifflin Co. 7,350 341,775
The McGraw-Hill Companies 2,200 179,850
-------
Total Publishing/Miscellaneous 910,875
-------
Retail (0.63%)
Michaels Stores 9,500 154,375
-------
Total Consumer
Discretionary 2,053,213
---------
Consumer Staples (2.89%)
Beverage/Alcohol (0.53%)
Robert Mondavi Corp. Class A 5,100 130,050
-------
Foods (2.36%)
IBP Inc. 6,300 336,261
Sysco Corp. 9,000 245,250
-------
Total Foods 581,511
-------
Total Consumer Staples 711,561
-------
Financial Services (17.59%)
Banks/Outside New York City (5.07%)
Crestar Financial Corp. 8,000 447,000
First American Corp. Tenn 800 34,500
Premier Bancorp Inc. 14,000 311,500
Shawmut National Corp. 13,500 453,938
-------
Total Banks/
Outside New York City 1,246,938
---------
Financial Information Services (0.46%)
Equifax 2,700 113,063
-------
Insurance/Multi-Line (4.49%)
American Travellers Corp. 13,750 256,094
Aon Corp. 6,700 273,863
Lincoln National Corp. 6,650 313,381
SAFECO Corp. 4,000 262,500
-------
Total Insurance/Multi-Line 1,105,838
---------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Insurance/Property and Casualty (2.26%)
<S> <C> <C>
PXRE Corp. 6,600 $179,850
St. Paul Companies 3,050 178,044
The PMI Group Inc. 4,200 198,975
-------
Total Insurance/
Property and Casualty 556,869
-------
Savings and Loan (5.31%)
Golden West Financial 6,500 328,250
Great Western Financial 10,500 249,375
Leader Financial Corp. 12,300 425,888
Washington Federal Inc. 12,800 304,000
-------
Total Savings and Loan 1,307,513
---------
Total Financial Services 4,330,221
---------
Health Care (14.33%)
Drugs and Pharmaceuticals (5.83%)
Alpharma Inc. 14,000 327,250
Forest Laboratories Inc. Class A 5,100 226,950
IVAX Corp. 8,000 241,000
Mallinckrodt Group Inc. 10,000 396,250
Watson Pharmaceuticals Inc. 6,000 246,000
-------
Total Drugs and Pharmaceuticals 1,437,450
---------
Electronics/Medical Systems (1.95%)
Dentsply International Inc. 3,800 131,100
Puritan-Bennett Corp. 7,000 348,250
------
Total Electronics/Medical Systems 479,350
-------
Health and Personal Care (1.74%)
Olsten Corp. 11,000 427,625
-------
Health Care Facilities (1.89%)
Multicare Cos Inc. 20,000 465,000
-------
Medical and Dental Instruments (2.92%)
Bausch & Lomb Inc. 4,000 165,500
Beckman Instruments Inc. 11,400 344,850
Sofamor/Danek Group Inc. 7,500 208,125
-------
Total Medical and
Dental Instruments 718,475
-------
Total Health Care 3,527,900
Integrated Oils (3.52%)
Oils/Integrated Domestic (3.52%)
Coastal Corp. 14,200 477,473
Kerr-McGee Corp. 5,000 277,500
Murphy Oil Corp. 2,800 112,000
-------
Total Oils/Integrated Domestic 866,973
-------
Materials and Processing (12.97%)
Agriculture, Fishing and Ranching (3.18%)
Dole Food Company Inc. 14,000 $484,750
Pioneer Hi-Bred International Inc. 6,500 299,000
-------
Total Agriculture, Fishing
and Ranching 783,750
-------
Building/Cement (1.47%)
Southdown Inc. 20,500 361,313
-------
Diversified Manufacturing (0.79%)
Tyco International Ltd. 3,100 195,300
-------
Fertilizers (1.84%)
Mississippi Chemical Corp. 17,500 367,500
-------
Vigoro Corp. 2,000 84,500
------
Total Fertilizers 452,000
Forest Products (2.66%)
Boise Cascade 8,000 323,000
Rayonier Inc. 8,500 332,563
-------
Total Forest Products 655,563
-------
Gold (0.42%)
Santa Fe Pacific Gold Corp. 8,260 104,282
-------
Paper (1.21%)
Willamette Industries 4,450 297,038
-------
Steel (1.40%)
USX Corp. 11,100 344,100
-------
Total Materials
and Processing 3,193,346
---------
Other (5.76%)
Multi-Sector Companies (1.99%)
Dial Corp. 10,300 254,924
Trinova Corp. 7,000 236,250
-------
Total Multi-Sector Companies 491,174
-------
Real Estate Investment Trusts (3.77%)
Alexander Haagen Properties 9,000 104,625
American Health Properties 8,800 186,000
LTC Properties Inc. 4,200 60,900
Meditrust 7,500 259,688
Malan Realty Investors Inc. 4,000 62,500
Nationwide Health Properties Inc. 3,100 127,100
Omega Healthcare Investors Inc. 4,800 128,400
-------
Total Real Estate Investment Trusts 929,213
-------
Total Other 1,420,387
---------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Other Energy (2.27%)
Oil/Crude Producers (2.27%)
<S> <C> <C>
Occidental Petroleum Corp. 2,000 $ 44,000
Santa Fe Energy Resources 16,100 152,950
Union Texas Petroleum Holdings 19,900 363,174
-------
Total Oil/Crude Producers 560,124
-------
Producer Durables (5.53%)
Diversified Production (1.00%)
General Signal Co. 8,400 245,700
-------
Electronics/Instruments (0.31%)
Tektronix Inc. 1,300 76,700
------
Identification Control and Filter Devices (2.95%)
Honeywell 5,000 214,375
Pall Corp. 22,000 511,500
-------
Total Identification Control
and Filter Devices 725,875
-------
Pollution Control and Environment (1.27%)
Wheelabrator Technologies 21,000 312,375
-------
Total Producer Durables 1,360,650
---------
Technology (9.03%)
Communications Technology (1.20%)
Newbridge Networks Corp. 10,000 293,750
-------
Computer Services Software (0.59%)
Cadence Design Systems Inc. 3,700 145,225
-------
Computer Technology (3.99%)
Network Peripherals Inc. 22,600 355,950
Sequent Computer Systems Inc. 15,500 308,062
Silicon Graphics Inc. 9,300 319,688
-------
Total Computer Technology 983,700
-------
Electronics (1.37%)
Premier Industrial Corp. 13,500 $337,500
--------
Electronics/Technology (1.88%)
Symbol Technologies Inc. 14,000 463,750
-------
Total Technology 2,223,925
---------
Utilities (8.20%)
Utilities/Electrical (1.67%)
General Public Utilities 6,000 186,750
Oklahoma Gas & Electric 6,000 225,750
-------
Total Utilities/Electrical 412,500
-------
Utilities/Gas Distributors (1.83%)
Panhandle Eastern Corp. 13,500 367,875
Southwestern Energy Co. 6,000 81,750
------
Total Utilities/Gas Distributors 449,625
-------
Utilities/Telecommunications (4.70%)
Century Telephone Enterprises 15,000 455,625
Cincinnati Bell 14,500 391,500
Tele Danmark ADS 12,000 310,500
-------
Total Utilities/Telecommunications 1,157,625
---------
Total Utilities 2,019,750
---------
TOTAL COMMON STOCKS
(cost $22,689,173) $23,711,138
-----------
TOTAL INVESTMENTS IN
SECURITIES (98.60%) (cost $23,257,709) $24,279,674
-----------
other assets less Liabilities
(1.40%) $345,616
--------
Net Assets (100.00%) $24,625,290
===========
See Accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
Core Equity Portfolio
September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
Variable Rate Demand Notes
(5.67%) Par Value Value
<S> <C> <C>
Eli Lilly
5.2964% 12-31-2031 $100,000 $100,000
General Mills
5.4600% 12-31-2031 405,000 405,000
Pitney Bowes
5.4671% 12-31-2031 145,000 145,000
Sara Lee
5.4469% 12-31-2031 536,871 536,871
Southwestern Bell
5.4469% 12-31-2031 600,000 600,000
Warner Lambert
5.4400% 12-31-2031 450,000 450,000
Wisconsin Electric
5.5082% 12-31-2031 113,000 113,000
TOTAL DEMAND NOTES
(cost $2,349,871) $2,349,871
</TABLE>
<TABLE>
<CAPTION>
CONVERTIBLE BONDS
(0.25%) Par Value Value
<S> <C> <C>
Bank and Bank Holding Co. (0.25%)
American Travellers Corp.
6.5000% 10-01-2005 $100,000 $ 104,125
COMMON STOCKS
(97.24%) Shares Value
Autos and Transportation (4.46%)
Air Transport (0.55%)
Federal Express 2,750 $228,250
------
Auto Parts/Original Equipment (1.66%)
Eaton Corp. 6,100 323,300
TRW Inc. 4,900 364,437
-------
Total Auto Parts/Original Equipment 687,737
-------
Automobiles (0.70%)
Chrysler Corp. 1,520 80,560
General Motors Corp. 4,500 210,938
-------
Total Automobiles 291,498
-------
Tires & Rubber (0.76%)
Goodyear Tire and Rubber 8,000 $315,000
--------
Truckers (0.78%)
TNT Freightways Corp. 17,150 323,706
-------
Total Autos and
Transportation 1,846,191
---------
Consumer Discretionary (6.18%)
Electrical/Household Appliances (0.41%)
Maytag Corp. 9,600 168,000
-------
Entertainment (0.55%)
Walt Disney Co. 24,000 229,500
-------
Household Equipment & Products (0.81%)
Black & Decker Corp. 9,850 336,130
-------
Publishing/Miscellaneous (2.84%)
Devon Group Inc. 10,700 462,775
Houghton Mifflin Co. 9,000 418,500
The McGraw-Hill Companies 3,600 294,300
-------
Total Publishing/Miscellaneous 1,175,575
---------
Retail (0.91%)
Michaels Stores 9,500 154,375
Wal-Mart Stores Inc. 9,000 223,875
-------
Total Retail 378,250
-------
Services/Commercial (0.66%)
Browning-Ferris Industries Inc. 9,000 273,375
-------
Total Consumer
Discretionary 2,560,830
---------
Consumer Staples (10.04%)
Beverage/Alcohol (0.35%)
Robert Mondavi Corp. Class A 5,700 145,350
-------
Beverage/Soft Drinks (2.80%)
Coca-Cola Co. 8,400 579,600
Pepsico Inc. 11,375 580,125
-------
Total Beverage/Soft Drinks 1,159,725
---------
Drug & Grocery Store Chain (1.29%)
Albertson s Inc. 15,700 535,763
-------
Foods (3.66%)
ConAgra Inc. 7,400 293,225
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
H J Heinz Co. 10,150 $464,363
IBP Inc. 7,950 424,331
Sysco Corp. 12,250 333,813
-------
Total Foods 1,515,732
---------
Soaps & Household Chemicals (0.79%)
Procter & Gamble 4,250 327,250
-------
Tobacco (1.15%)
Philip Morris Co. Inc. 5,700 475,950
-------
Total Consumer Staples 4,159,770
---------
Financial Services (12.42%)
Banks/New York City (0.91%)
Bank of New York 8,100 376,650
-------
Banks/Outside New York City (3.42%)
Banc One Corp. 5,500 200,750
First American Corp. Tenn 1,850 79,781
Norwest Corp. 14,550 476,513
Premier Bancorp Inc. 16,000 356,000
Shawmut National Corp. 9,000 302,625
Shawmut National Corp. Warrants 7 80
- --
Total Banks/Outside New York City 1,415,749
---------
Diversified Financial Services (0.77%)
Travelers Group 6,000 318,750
------
Financial Information Services (0.17%)
Equifax 1,700 71,187
------
Insurance/Multi-Line (2.70%)
American International Group 2,225 189,124
American Travellers Corp. 10,250 190,905
Aon Corp. 5,750 235,031
Lincoln National Corp. 5,000 235,625
SAFECO Corp. 4,100 269,063
-------
Total Insurance/Multi-Line 1,119,748
---------
Insurance/Property & Casualty (1.44%)
PXRE Corporation 5,200 141,700
St. Paul Companies 6,150 359,006
The PMI Group Inc. 2,000 94,750
------
Total Insurance/Property & Casualty 595,456
-------
Savings and Loan (3.02%)
Golden West Financial 8,000 404,000
Great Western Financial 7,500 178,125
Leader Financial Corp. 9,000 311,625
Washington Federal Inc. 15,000 356,250
-------
Total Savings and Loan 1,250,000
---------
Total Financial Services 5,147,540
---------
Health Care (13.33%)
Drugs & Pharmaceuticals (7.23%)
Abbott Labs 5,000 $213,125
Bristol-Myers Squibb 10,900 794,338
Forest Laboratories Inc. Class A 7,150 318,175
IVAX Corp. 10,000 301,250
Mallinckrodt Group Inc. 11,900 471,538
Merck & Co. 8,675 485,800
Watson Pharmaceuticals Inc. 10,000 410,000
-------
Total Drugs & Pharmaceuticals 2,994,226
---------
Electronics/Medical Systems (0.72%)
Puritan-Bennett Corp. 6,000 298,500
-------
Health & Personal Care (1.17%)
Olsten Corp. 12,500 485,938
-------
Health Care Facilities (1.29%)
Multicare Cos Inc. 23,000 534,750
-------
Medical & Dental Instruments (2.92%)
Bausch & Lomb Inc. 10,000 413,750
Beckman Instruments Inc. 14,100 426,525
Sofamor/Danek Group Inc. 13,250 367,688
-------
Total Medical & Dental Instruments 1,207,963
---------
Total Health Care 5,521,377
---------
Integrated Oils (7.45%)
Oil/Integrated Domestic (5.25%)
Coastal Corp. 19,500 655,687
Kerr-McGee Corp. 8,100 449,550
Mobil Corp. 7,200 717,300
Murphy Oil Corp. 6,000 240,000
Unocal Corp. 4,000 114,000
-------
Total Oil/Integrated Domestic 2,176,537
---------
Oil/Integrated International (2.20%)
Chevron Corp. 1,800 87,525
Exxon Corp. 11,400 823,650
-------
Total Oil/Integrated International 911,175
-------
Total Integrated Oils 3,087,712
---------
Materials and Processing (10.73%)
Agriculture, Fishing & Ranching (2.36%)
Dole Food Company Inc. 15,000 519,375
Pioneer Hi-Bred International Inc. 10,000 460,000
-------
Total Agriculture, Fishing & Ranching 979,375
-------
Building/Cement (0.85%)
Southdown Inc. 20,000 352,500
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Chemicals (1.51%)
<S> <C> <C>
E.I. duPont de Nemours and Co. 9,100 $625,625
-------
Diversified Manufacturing (0.81%)
Tyco International Ltd. 5,300 333,900
-------
Fertilizers (1.37%)
Mississippi Chemical Corp. 20,550 431,550
Vigoro Corp. 3,250 137,312
-------
Total Fertilizers 568,862
-------
Forest Products (1.92%)
Boise Cascade 6,200 250,325
Rayonier Inc. 9,300 363,863
Weyerhaeuser Co. 4,000 182,500
-------
Total Forest Products 796,688
-------
Gold (0.18%)
Santa Fe Pacific Gold Corp. 6,000 75,750
------
Paper (0.97%)
Willamette Industries 6,050 403,838
-------
Steel (0.75%)
USX Corp. 10,000 310,000
------
Total Materials
and Processing 4,446,538
---------
Other (3.72%)
Multi-Sector Companies (2.30%)
Dial Corp. 9,500 235,125
General Electric 7,450 474,938
TRINOVA Corp. 7,200 243,000
-------
Total Multi-Sector Companies 953,063
-------
Real Estate Investment Trusts (1.42%)
Alexander Haagen Properties 4,900 56,962
American Health Properties 3,740 79,049
LTC Properties Inc. 6,900 100,050
Malan Realty Investors Inc. 4,000 62,500
Meditrust 3,000 103,875
Omega Healthcare Investors Inc. 6,900 184,575
-------
Total Real Estate Investment Trusts 587,011
-------
Total Other 1,540,074
---------
Other Energy (2.21%)
Oil/Crude Producers (2.21%)
Occidental Petroleum Corp. 18,500 407,000
Santa Fe Energy Resources 15,900 151,050
Union Texas Petroleum Holdings 19,500 355,875
-------
Total Oil/Crude Producers 913,925
-------
Producer Durables (6.84%)
Aerospace (0.97%)
Rockwell International Corp. 8,500 $401,625
--------
Diversified Production (0.40%)
General Signal Co. 5,700 166,725
-------
Electronics/Instruments (0.62%)
Tektronix Inc. 4,350 256,650
-------
Identification Control & Filter Services (2.09%)
Honeywell 9,000 385,875
Pall Corp. 20,700 481,275
-------
Total Identification Control
& Filter Services 867,150
-------
Machinery/Agricultural (1.08%)
Deere & Co. 5,500 447,563
-------
Office Furniture and Business (0.83%)
Xerox Corp. 2,550 342,656
-------
Pollution Control and Environmental
Services (0.85%)
Wheelabrator Technologies 23,700 352,538
-------
Total Producer Durables 2,834,907
---------
Technology (8.92%)
Communications Technology (0.48%)
Newbridge Networks Corp. 6,750 198,281
-------
Computer Services Software (0.50%)
Cadence Design Systems Inc. 5,300 208,025
-------
Computer Technology (5.77%)
Apple Computer Inc. 8,500 316,625
Hewlett-Packard Co. 1,300 108,388
International Business
Machines Corp. 9,700 915,438
Network Peripherals Inc. 24,200 381,150
Sequent Computer Systems Inc. 14,000 278,250
Silicon Graphics Inc. 11,400 391,875
-------
Total Computer Technology 2,391,726
---------
Electronics (0.30%)
Premier Industrial Corp. 5,000 125,000
-------
Electronics/Semiconductor (0.69%)
Intel Corp. 4,750 285,594
-------
Electronics/Technology (1.18%)
Symbol Technologies Inc. 14,750 488,594
-------
Total Technology 3,697,220
---------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Utilities (10.94%)
Electrical (1.19%)
<S> <C> <C>
General Public Utilities 4,400 $ 136,950
Oklahoma Gas & Electric 9,500 357,436
-------
Total Electrical 494,386
-------
Gas Distributors (0.95%)
Panhandle Eastern Corp. 11,750 320,187
Southwestern Energy Co. 5,500 74,938
------
Total Gas Distributors 395,125
-------
Telecommunication (8.79%)
AT&T Corp. 18,350 1,206,513
Ameritech Corp. 13,400 698,475
Century Telephone Enterprises 17,100 519,413
Cincinnati Bell 14,200 383,400
GTE Corp. 12,000 471,000
Tele Danmark ADS 14,000 362,250
-------
Total Telecommunication 3,641,051
---------
Total Utilities 4,530,562
TOTAL COMMON STOCKS
(cost $37,077,142) $ 40,286,646
------------
TOTAL INVESTMENTS
IN SECURITIES (103.16%)
(cost $ 39,527,013) $ 42,740,642
------------
Liabilities less other assets (-3.16%) ($ 1,309,843)
------------
Net Assets (100.00%) $ 41,430,799
============
See Accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Balanced Portfolio
September 30, 1995 (unaudited)
<S> <C> <C>
Variable RaTE DEMAND NOTES (9.35%) Par Value Value
General Mills
5.4600% 12-31-2031 $ 595,000 $ 595,000
Pitney Bowes
5.4671% 12-31-2031 410,000 410,000
Sara Lee
5.4469% 12-31-2031 341,982 341,982
Southwestern Bell
5.4469% 12-31-2031 400,000 400,000
Wisconsin Electric
5.5082% 12-31-2031 145,000 145,000
TOTAL DEMAND NOTES
(cost $1,891,982) $1,891,982
----------
LONG-TERM DEBT SECURITIES
(30.02%) Par Value Value
U.S. Treasury Obligations (17.80%)
U.S. Treasury Notes
5.1250% 03-31-1996 $100,000 $ 99,812
6.2500% 08-31-1996 100,000 100,468
8.0000% 10-15-1996 70,000 71,597
6.8750% 02-28-1997 200,000 202,936
8.5000% 05-15-1997 $100,000 104,094
6.7500% 05-31-1997 50,000 50,734
9.0000% 05-15-1998 20,000 21,494
5.2500% 07-31-1998 100,000 98,313
6.3750% 01-15-1999 25,000 25,320
7.0000% 04-15-1999 100,000 103,281
7.5000% 10-31-1999 400,000 421,375
7.8750% 11-15-1999 200,000 213,563
7.1250% 02-29-2000 400,000 416,875
6.7500% 04-30-2000 300,000 308,531
7.7500% 02-15-2001 270,000 290,840
7.5000% 11-15-2001 200,000 214,375
6.3750% 08-15-2002 425,000 431,375
6.2500% 02-15-2003 425,000 427,391
-------
Total U.S. Treasury
Obligations 3,602,374
---------
Government Regional (0.52%)
Ontario Global Bond
7.3750% 01-27-2003 100,000 104,495
-------
Regional Government
Agency (0.26%)
Hydro Quebec
7.3750% 02-01-2003 50,000 51,695
------
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
Corporate Bonds (11.44%)
Asset-Backed Security (0.50%)
Discover Card Trust
8.6250% 07-16-1998 $100,000 $101,820
--------
Industrials (0.41%)
McKesson Corp.
8.6250% 02-01-1998 50,000 52,684
Pepsico Inc.
7.0000% 11-15-1996 30,000 30,344
------
Total Industrials 83,028
------
Finance Companies (10.53%)
Allstate Corp.
5.8750% 06-15-1998 100,000 98,881
American General Finance
6.8750% 01-15-2000 25,000 25,390
Associates Corp. of North America
Medium Term Note
8.0000% 10-27-1999 50,000 52,755
6.3750% 06-01-2000 25,000 24,915
Associates Corp. of North America
6.0000% 06-15-2000 25,000 24,547
7.5000% 04-15-2002 100,000 104,767
Commercial Credit Co.
6.8750% 05-01-2002 200,000 202,799
Dean Witter Discover
6.7500% 08-15-2000 200,000 202,031
Ford Motor Credit Co.
7.5000% 11-15-1999 25,000 25,847
6.3750% 04-15-2000 50,000 49,741
Ford Motor Credit Medium Term Note
5.9000% 06-09-1998 75,000 74,290
General Electric Capital
8.6500% 05-01-2018 75,000 76,012
GMAC Medium Term Notes
8.6500% 05-29-1996 45,000 45,759
6.7500% 07-10-1997 125,000 126,072
7.5000% 11-04-1997 50,000 51,185
Household Financial Medium Term Note
7.0000% 05-15-2000 200,000 203,444
International Lease Finance
8.1250% 01-15-1998 150,000 155,787
Merrill Lynch & Co.
6.3750% 03-30-1999 50,000 49,830
7.3750% 08-17-2002 30,000 30,940
7.0500% 04-15-2003 25,000 25,200
Morgan Stanley Notes
8.8750% 04-01-1996 50,000 50,670
8.0000% 10-15-1996 50,000 50,848
9.2500% 03-01-1998 $125,000 $132,699
6.1250% 10-01-2003 100,000 95,546
USLIFE Corp.
6.7500% 01-15-1998 150,000 150,918
-------
Total Finance Companies 2,130,873
---------
Total Corporate Bonds 2,315,721
---------
TOTAL LONG-TERM
DEBT SECURITIES
(cost $5,938,322) $6,074,285
COMMON STOCKS
(60.74%) Shares Value
Autos and Transportation (3.08%)
Air Transportation (0.41%)
Federal Express 1,000 $ 83,000
---------
Auto Parts/Original Equipment (1.38%)
Eaton Corp. 2,400 127,200
TRW Inc. 2,050 152,469
-------
Total Auto Parts/Original Equipment 279,669
-------
Automobiles (0.56%)
Chrysler Corp. 380 20,140
General Motors Corp. 2,000 93,750
------
Total Automobiles 113,890
-------
Tires and Rubber (0.43%)
Goodyear Tire & Rubber 2,200 86,625
------
Truckers (0.30%)
TNT Freightways Corp. 3,250 61,343
------
Total Autos
and Transportation 624,527
-------
Consumer Discretionary (3.28%)
Electrical/Household Appliance (0.28%)
Maytag Corp. 3,200 56,000
------
Entertainment (0.31%)
Walt Disney Co. 1,100 63,113
------
Household Equipment and Products (0.29%)
Black & Decker Corp. 1,700 58,013
------
Publishing/Miscellaneous (1.46%)
Devon Group Inc. 1,800 77,850
Houghton Mifflin Co. 2,950 137,175
The McGraw-Hill Companies 1,000 81,750
------
Total Publishing/Miscellaneous 296,775
-------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Retail (0.62%)
<S> <C> <C>
Michaels Stores 3,800 $ 61,750
Wal-Mart Stores Inc. 2,600 64,675
------
Total Retail 126,425
-------
Services/Commercial (0.32%)
Browning-Ferris Industries Inc. 2,100 63,788
------
Total Consumer Discretionary 664,114
-------
Consumer Staples (6.66%)
Beverage/Soft Drinks (1.81%)
Coca-Cola Co. 2,600 179,400
Pepsico Inc. 3,650 186,150
-------
Total Beverage/Soft Drinks 365,550
-------
Drugs and Grocery Store Chain (0.66%)
Albertson s Inc. 3,900 133,088
-------
Foods (2.67%)
ConAgra Inc. 2,600 103,025
H J Heinz Co. 3,000 137,250
IBP Inc. 6,800 149,450
Sysco Corp. 5,550 151,238
-------
Total Foods 540,963
-------
Soaps and Household Chemical (0.53%)
Procter & Gamble 1,400 107,800
-------
Tobacco (0.99%)
Philip Morris Co. Inc. 2,400 200,400
-------
Total Consumer Staples 1,347,801
---------
Financial Services (9.48%)
Banks/New York City (0.84%)
Banc One Corp. 2,500 91,250
Bank of New York 1,700 79,050
------
Total Banks/New York City 170,300
-------
Banks/Outside New York City (2.10%)
First American Corp. Tenn 900 38,813
Norwest Corp. 4,450 145,738
Premier Bancorp Inc. 5,200 115,700
Shawmut National Corp. 3,700 124,413
-------
Total Banks/Outside New York City 424,664
-------
Diversified Financial Services (0.47%)
Travelers Group 1,800 95,625
------
Insurance/Multi-Line (1.67%)
American International Group 225 19,125
American Travellers Corp. 5,000 93,125
Aon Corp. 2,000 81,750
Lincoln National Corp. 1,200 $ 56,550
SAFECO Corp. 1,325 86,953
------
Total Insurance/Multi-Line 337,503
-------
Insurance/Property Casualty (1.09%)
St. Paul Companies 1,900 110,913
The PMI Group Inc. 2,300 108,963
-------
Total Insurance/Property Casualty 219,876
-------
Savings and Loan (1.87%)
Golden West Financial 2,600 131,300
Great Western Financial 5,000 118,750
Leader Financial Corp. 950 32,894
Washington Federal Inc. 4,000 95,000
------
Total Savings and Loan 377,944
-------
Total Financial Services 1,625,912
---------
Health Care (7.40%)
Drugs and Pharmaceuticals (4.32%)
Abbott Labs 2,000 85,250
Bristol-Myers Squibb 3,350 244,131
Forest Laboratories Inc. Class A 1,250 55,625
IVAX Corp. 1,000 30,125
Mallinckrodt Group Inc. 3,500 138,688
Merck & Co. 2,800 156,800
Watson Pharmaceuticals Inc. 4,000 164,000
-------
Total Drugs and Pharmaceuticals 874,619
-------
Electronics/Medical Systems (0.49%)
Puritan-Bennett Corp. 2,000 99,500
------
Health and Personal Care (0.67%)
Olsten Corp. 3,500 136,063
-------
Health Care Facilities (0.65%)
Multicare Cos Inc. 5,700 132,525
-------
Medical and Dental Instruments (1.27%)
Bausch & Lomb Inc. 1,750 72,406
Beckman Instruments Inc. 5,200 157,300
Sofamor/Danek Group Inc. 1,000 27,750
------
Total Medical and Dental Instruments 257,456
-------
Total Health Care 1,500,163
---------
Integrated Oils (5.07%)
Oil/Integrated Domestic (2.90%)
Coastal Corp. 6,100 205,113
Kerr-McGee Corp. 2,300 127,650
Mobil Corp. 1,950 194,269
Murphy Oil Corp. 1,500 60,000
------
Total Oil/Integrated Domestic 587,032
-------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Oil/Integrated International (2.17%)
<S> <C> <C>
Chevron Corp. 700 $ 34,038
Exxon Corp. 5,600 404,600
Total Oil/Integrated International 438,638
-------
Total Integrated Oils 1,025,670
---------
Materials and Processing (7.09%)
Agriculture, Fishing and Ranching (1.42%)
Dole Food Company Inc. 4,400 152,350
-------
Pioneer Hi-Bred International Inc. 2,900 133,400
-------
Total Agriculture, Fishing
and Ranching 285,750
-------
Building/Cement (0.26%)
Southdown Inc. 3,000 52,875
------
Chemicals (0.92%)
E.I. duPont de Nemours and Co. 2,700 185,625
-------
Diversified Manufacturing (0.75%)
Tyco International Ltd. 2,400 151,200
-------
Fertilizers (0.62%)
Mississippi Chemical Corp. 6,000 126,000
-------
Forest Products (1.39%)
Boise Cascade 2,000 80,750
Rayonier Inc. 3,400 133,025
Weyerhaeuser Co. 1,500 68,438
------
Total Forest Products 282,213
-------
Gold (0.12%)
Santa Fe Pacific Gold Corp. 2,000 25,250
------
Paper (0.69%)
Willamette Industries 2,100 140,175
-------
Steel (0.92%)
USX Corp. 6,000 186,000
-------
Total Materials & Processing 1,435,088
---------
Other (2.16%)
Multi-Sector Companies (0.72%)
Dial Corp. 2,500 61,875
General Electric 1,300 82,875
------
Total Multi-Sector Companies 144,750
-------
Real Estate Investment Trusts (1.44%)
Alexander Haagen Properties 2,500 29,063
American Health Properties 1,650 34,876
LTC Properties Inc. 2,900 42,050
Malan Realty Investors Inc. 2,000 31,250
Meditrust 2,000 69,250
Omega Healthcare Investors 3,200 85,600
------
Total Real Estate Investment Trusts 292,089
-------
Total Other 436,839
-------
Other Energy (1.36%)
Oil/Crude Producers (1.36%)
Occidental Petroleum Corp. 6,300 138,600
Santa Fe Energy Resources 7,200 68,400
Union Texas Petroleum Holdings 3,700 67,525
------
Total Oil/Crude Producers 274,525
-------
Producer Durables (4.09%)
Aerospace (0.51%)
Rockwell International Corp. 2,200 103,950
-------
Diversified Production (0.32%)
General Signal Co. 2,200 64,350
------
Electronics/Instruments (0.23%)
Tektronix Inc. 800 47,200
------
Identification Control and Filter Devices (1.08%)
Honeywell 2,100 90,038
Pall Corp. 5,500 127,875
-------
Total Identification Control
and Filter Devices 217,913
-------
Machinery/Agricultural (0.76%)
Deere & Co. 1,900 154,613
-------
Office Furniture and Business (0.60%)
Xerox Corp. 900 120,936
-------
Pollution Control and Environmental Services (0.59%)
Wheelabrator Technologies 8,000 119,000
-------
Total Producer Durables 827,962
-------
Technology (5.56%)
Communications Technology (0.14%)
Newbridge Networks Corp. 1,000 29,373
------
Computer Services Software (0.27%)
Cadence Designs Systems Inc. 1,400 54,950
------
Computer Technology (3.68%)
Apple Computer Inc. 2,100 78,224
Hewlett-Packard Co. 500 41,686
International Business
Machines Corp. 3,200 302,000
Network Peripherals Inc. 6,200 97,650
Sequent Computer Systems Inc. 5,250 104,343
Silicon Graphics Inc. 3,500 120,313
-------
Total Computer Technology 744,216
-------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Electronics (0.08%)
<S> <C> <C>
Premier Industries Corp. 650 $ 16,250
------------
Electronics/Semiconductor (0.70%)
Intel Corp. 2,350 141,294
-------
Electronics/Technology (0.69%)
Symbol Technologies Inc. 4,200 139,124
-------
Total Technology 1,125,207
---------
Utilities (6.95%)
Utilities/Electrical (0.83%)
General Public Utilities 1,400 43,575
Oklahoma Gas & Electric 3,300 124,163
-------
Total Utilities/Electrical 167,738
-------
Utilities/Gas Distributor (0.56%)
Panhandle Eastern Corp. 3,200 87,200
Southwestern Energy Co. 1,900 25,888
------
Total Utilities/Gas Distributor 113,088
-------
Utilities/Telecommunication (5.56%)
AT&T Corp. 5,550 $ 364,912
Ameritech Corp. 4,050 211,106
Century Telephone Enterprises 5,250 159,468
Cincinnati Bell 2,500 67,500
GTE Corp. 5,835 229,024
Tele Danmark ADS 3,600 93,150
------
Total Utilities/Telecommunication 1,125,160
---------
Total Utilities 1,405,986
---------
TOTAL COMMON STOCKS
(cost $11,319,428) $ 12,293,794
------------
TOTAL INVESTMENTS
IN SECURITIES (100.11%)
(cost $19,149,732) $ 20,260,061
------------
Liabilities less other assets ( 0.11%) ($ 22,896)
------------
Net Assets (100.00%) $ 20,237,165
============
</TABLE>
See Accompanying Notes to Financial Statements
<PAGE>
<TABLE>
<CAPTION>
RIM Intermediate Fixed Income Portfolio
September 30, 1995 (unaudited)
Variable Rate DEMAND NOTES
(6.73%) Par Value Value
General Mills
<S> <C> <C>
5.4600% 12-31-2031 $ 81,000 $ 81,000
Pitney Bowes
5.4671% 12-31-2031 140,382 140,382
Southwestern Bell
5.4469% 12-31-2031 220,000 220,000
Wisconsin Electric
5.5082% 12-31-2031 65,000 65,000
------
TOTAL DEMAND NOTES
(cost $506,382) $506,382
--------
CERTIFICATES OF
DEPOSIT (0.63%) Par Value Value
Bank of NY Wilmington
9.1500% 01-06-1998 $ 10,000$ 10,000
Bankers Trust Company
6.3600%* 09-02-1996 40,000 37,757
TOTAL Certificates
of Deposit (cost $47,757) $47,757
-------
LONG-TERM DEBT SECURITIES
(90.68%) Par Value Value
U.S. Treasury Obligations (58.95%)
Certificate of Accrual Treasury Securities
7.1300%* 11-15-1999 $100,000 $ 78,068
-------- --------
U.S. Treasury Notes
5.1250% 03-31-1996 175,000 174,672
7.6250% 04-30-1996 55,000 55,619
6.2500% 08-31-1996 250,000 251,172
8.0000% 10-15-1996 205,000 209,676
8.5000% 05-15-1997 300,000 312,281
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
6.7500% 05-31-1997 $ 225,000 $ 228,305
9.0000% 05-15-1998 265,000 284,792
6.3750% 01-15-1999 200,000 202,562
7.0000% 04-15-1999 125,000 129,101
7.8750% 11-15-1999 220,000 234,919
7.1250% 02-29-2000 300,000 312,656
6.7500% 04-30-2000 200,000 205,687
7.7500% 02-15-2001 330,000 355,472
7.5000% 11-15-2001 300,000 321,563
6.3750% 08-15-2002 450,000 456,750
6.2500% 02-15-2003 300,000 301,687
7.2500% 05-15-2004 300,000 320,438
-------
Total U.S. Treasury
Obligations 4,435,420
---------
U.S. Agency Obligations (3.08%)
Federal Farm Credit Bank (FFCB)
Medium Term Note
7.5500% 03-25-1999 150,000 156,738
Federal National Mortgage
Association (FNMA)
7.0500% 12-18-1998 75,000 75,293
------
Total U.S. Agency
Obligations 232,031
-------
Government Regional (1.25%)
Ontario Global Bond
7.3750% 01-27-2003 90,000 94,045
------
Regional Government
Agency (1.72%)
Hydro Quebec
7.3750% 02-01-2003 125,000 129,239
-------
Corporate Bonds (25.68%)
Asset-Backed Security (1.49%)
Discover Card Trust
8.6250% 07-16-1998 110,000 112,002
-------
Industrial (2.08%)
Pepsico Inc.
7.0000% 11-15-1996 155,000 156,778
-------
Finance Companies (22.11%)
Allstate Corp.
5.8750% 06-15-1998 250,000 247,203
American General Finance
6.8750% 01-15-2000 25,000 25,390
Associates Corp. of North America
Medium Term Note
6.3750% 06-01-2000 25,000 24,915
Associates Corp. of North America
7.5000% 05-15-1999 $ 50,000$ 51,792
CNA Financial Note
8.8750% 03-01-1998 200,000 209,172
Dean Witter Discover
6.2500% 03-15-2000 40,000 39,643
Discover Credit Medium Term Note
8.3500% 05-06-1999 100,000 105,604
Ford Motor Credit Co.
7.5000% 11-15-1999 25,000 25,847
6.3750% 04-15-2000 75,000 74,611
Ford Motor Credit Medium Term Note
5.9000% 06-09-1998 50,000 49,527
General Electric Capital
8.6500% 05-01-2018 100,000 101,349
GMAC Medium Term Note
8.6500% 05-29-1996 55,000 55,928
7.5000% 11-04-1997 105,000 107,488
Merrill Lynch and Co.
7.2500% 05-15-1997 50,000 50,824
6.3750% 03-30-1999 25,000 24,915
7.0500% 04-15-2003 100,000 100,800
Morgan Stanley
8.0000% 10-15-1996 70,000 71,188
6.1250% 10-01-2003 100,000 95,546
USLIFE Corp.
6.7500% 01-15-1998 200,000 201,224
------- -------
Total Finance Companies 1,662,966
---------
Total Corporate Bonds 1,931,746
---------
TOTAL LONG-TERM
DEBT SECURITIES
(cost $6,628,916) $6,822,481
----------
TOTAL INVESTMENTS
IN SECURITIES (98.04%)
(cost $7,183,055) $7,376,620
----------
other assets less
Liabilities (1.96%) $ 147,511
----------
Net Assets (100.00%) $7,524,131
==========
* Bond Equivalent Yield
</TABLE>
See Accompanying Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
Statements of Assets and Liabilities
Rainier Investment Management Mutual Funds
September 30, 1995 (unaudited)
Small/Mid Intermediate
Cap Equity Core Equity Balanced Fixed Income
Portfolio Portfolio Portfolio Portfolio
Assets
Investments in securities at market value
(cost of $23,257,709, $39,527,013,
<S> <C> <C> <C> <C>
$19,149,732 and $7,183,055, respectively) $24,279,674 $42,740,642 $20,260,061 $ 7,376,620
Cash 2,772 8,136 2,920
Receivables
Investment securities sold 1,070,131 1,101,933 281,748
Income receivable 28,654 79,908 147,071 140,266
From investment advisor (Note 3) 3,567
Deferred organization costs 16,462 16,462 16,462 16,462
Prepaid expenses 568 14,306 8,061 6,032
--- ------ ----- -----
Total assets 25,398,261 43,961,387 20,716,323 7,542,947
---------- ---------- ---------- ---------
Liabilities
Payables
Investment securities purchased 734,366 2,478,276 447,320
Due to investment advisor (Note 3) 17,381 31,492 9,286
Other accrued expenses 21,224 20,820 22,552 18,816
Total liabilities 772,971 2,530,588 479,158 18,816
------- --------- ------- ------
Net assets $24,625,290 $41,430,799 $20,237,165 $ 7,524,131
=========== =========== =========== ===========
Composition of
net assets
Paid-in capital $20,842,197 $33,411,589 $17,908,354 $ 7,322,081
Accumulated undistributed
net investment income 82,809 234,748 1,106 312
Accumulated net realized gain
on investments 2,678,319 4,570,833 1,217,376 8,173
Net unrealized appreciation
on investments 1,021,965 3,213,629 1,110,329 193,565
--------- --------- --------- -------
Net assets $24,625,290 $41,430,799 $20,237,165 $ 7,524,131
=========== =========== =========== ===========
Number of shares, no par value, issued and
outstanding (unlimited shares authorized) 1,458,560 2,448,022 1,416,892 608,141
========= ========= ========= =======
Net asset value per share $ 16.88 $ 16.92 $ 14.28 $ 12.37
=========== =========== =========== ===========
</TABLE>
See Accompanying Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
Statements of Operations
Rainier Investment Management Mutual Funds
For the six months ended September 30, 1995 (unaudited)
Small/Mid Core Intermediate
Cap Equity Equity Balanced Fixed Income
Portfolio Portfolio Portfolio Portfolio
Investment income
Income
<S> <C> <C> <C> <C>
Dividend income $135,119 $330,229 $111,759 $
Interest income 28,575 36,968 224,706 239,199
------ ------ ------- -------
Total Income 163,694 367,197 336,465 239,199
------- ------- ------- -------
Expenses
Investment advisory fees 59,901 111,525 56,860 17,526
Custodian fees 2,800 3,042 2,819 2,809
Administration fees 18,803 18,938 18,803 18,803
Fund accounting fees 9,808 10,293 10,778 9,899
Transfer agent fees 4,992 5,482 4,992 4,507
Legal fees 1,665 2,533 2,133 1,512
Distribution fees 17,618 37,175 20,307 8,763
Insurance 2,024 3,438 2,502 1,963
Audit fees 5,001 5,001 5,001 5,001
Miscellaneous fees 1,049 1,473 1,002 989
Reports to shareholders 570 570 570 570
Registration fees 7,010 7,010 7,010 7,010
Trustees fees 2,016 2,016 2,016 2,016
Amortization of deferred organization costs 2,130 2,130 2,130 2,130
----- ----- ----- -----
Total expenses 135,387 210,626 136,923 83,498
Less: expenses waived or reimbursed (31,088) (18,804) (40,262) (50,199)
------- ------- ------- -------
Net expenses 104,299 191,822 96,661 33,299
------- ------- ------ ------
Net investment income 59,395 175,375 239,804 205,900
------ ------- ------- -------
Net realized and
unrealized gain
on investments
Net realized gain on investments 2,052,368 3,721,616 1,316,007 11,109
Net change in unrealized appreciation
on investments 557,525 2,058,592 717,429 192,148
------- --------- ------- -------
Net gains on investments 2,609,893 5,780,208 2,033,436 203,257
--------- --------- --------- -------
Net increase in
net assets resulting
from operations $ 2,669,288 $ 5,955,583 $ 2,273,240 $ 409,157
=========== =========== =========== ===========
</TABLE>
See Accompanying Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Rainier Investment Management Mutual Funds
(unaudited)
Small/Mid Cap Equity Portfolio Core Equity Portfolio
For the six For the period For the six For the period
months ended ended months ended ended
09/30/95 03/31/95* 09/30/95 03/31/95*
INCREASE IN NET ASSETS
Operations
<S> <C> <C> <C> <C>
Net investment income $ 59,395 $ 52,461 $ 175,375 $ 138,918
Net realized gain on
investments sold 2,052,368 769,680 3,721,616 1,074,392
Net change in unrealized appreciation
on investments 557,525 464,440 2,058,592 1,155,037
------- ------- --------- ---------
Net increase in net assets
from operations 2,669,288 1,286,581 5,955,583 2,368,347
--------- --------- --------- ---------
Distributions to shareholders
From net investment income (29,048) - (79,546)
From net realized gains (143,729) (225,175)
-------- --------
Total distributions (172,777) (304,721)
-------- --------
Capital share transactions
Proceeds from shares sold 12,326,049 8,870,407 16,520,791 19,778,791
Net asset value of shares issued on
reinvestment of distributions 165,914 304,721
Cost of shares redeemed (489,743) (31,429) (1,475,798) (1,717,915)
-------- ------- ---------- ----------
Net increase from
capital share transactions 11,836,306 9,004,892 15,044,993 18,365,597
---------- --------- ---------- ----------
Net increase in net assets 14,505,594 10,118,696 21,000,576 20,429,223
NET ASSETS
Beginning of period 10,119,696 1,000 20,430,223 1,000
End of period $ 24,625,290 $ 10,119,696 $ 41,430,799 $ 20,430,223
============ ============ ============ ============
CHANGE IN SHARES
Shares sold 761,177 717,527 1,066,474 1,587,515
Shares issued on reinvestment of distributions 0 13,402 0 24,654
Redeemed (31,193) (2,436) (94,691) (136,012)
------- ------ ------- --------
Net increase 729,984 728,493 971,783 1,476,157
======= ======= ======= =========
* From commencement of operations on May 10, 1994
</TABLE>
See Accompanying Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
Intermediate Fixed
Balanced Portfolio Income Portfolio
For the six For the period For the six For the period
months ended ended months ended ended
09/30/95 03/31/95* 09/30/95 03/31/95*
INCREASE IN NET ASSETS
Operations
<S> <C> <C> <C> <C>
Net investment income $ 239,804 $ 212,414 $ 205,900 $ 279,947
Net realized gain on
investments sold 1,316,007 475,460 11,109 (2,936)
Net change in unrealized appreciation
on investments 717,429 392,900 192,148 1,417
------- ------- ------- -----
Net increase in net assets
from operations 2,273,240 1,080,774 409,157 278,428
--------- --------- ------- -------
Distributions to shareholders
From net investment income (228,271) (222,841) (205,543) (279,994)
-------- -------- -------- --------
From net realized gains (474,892) (99,199)
Total distributions (703,163) (322,040) (205,543) (279,994)
-------- -------- -------- --------
Capital share transactions
Proceeds from shares sold 4,881,992 12,920,646 803,709 6,986,228
Net asset value of shares issued on
reinvestment of distributions 703,163 322,040 205,543 275,679
Cost of shares redeemed (642,056) (278,431) (58,417) (987,659)
-------- -------- ------- --------
Net increase from
capital share transactions 4,943,099 12,964,255 950,835 6,274,248
--------- ---------- ------- ---------
Net increase in net assets 6,513,176 13,722,989 1,154,449 6,272,682
NET ASSETS
Beginning of period 13,723,989 1,000 6,369,682 97,000
---------- ----- --------- ------
End of period $ 20,237,165 $ 13,723,989 $ 7,524,131 $ 6,369,682
============ ============ ============ ============
CHANGE IN SHARES
Shares sold 353,077 1,055,733 65,273 582,973
Shares issued on reinvestment of distributions 51,867 26,173 16,719 23,117
Redeemed (47,364) (22,676) (4,724) (83,300)
------- ------- ------ -------
Net increase 357,580 1,059,230 77,268 522,790
======= ========= ====== =======
<FN>
* From commencement of operations on May 10, 1994
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights
Rainier Investment Management Mutual Funds
For a share outstanding through the period (unaudited)
Small/Mid Cap Equity Portfolio Core Equity Portfolio
For the six For the period For the six For the period
months ended ended months ended ended
09/30/95 03/31/95* 09/30/95 03/31/95*
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 13.89 $ 12.00 $ 13.84 $ 12.00
Income from investment operations
Net investment income 0.01 0.10 0.03 0.11
Net realized and unrealized gains
on investments 2.98 2.18 3.05 2.00
---- ---- ---- ----
Total from investment operations 2.99 2.28 3.08 2.11
---- ---- ---- ----
Distributions
From net investment income (0.07) (0.07)
From net realized gains (0.32) (0.20)
----- -----
Total distributions (0.39) (0.27)
----- -----
Net asset value, end of period $ 16.88 $ 13.89 $ 16.92 $ 13.84
============= ============= ============= =============
Total return (not annualized) 21.53% 19.38% 22.25% 17.87%
===== ===== ===== =====
Net assets at end of period (in 000 s) $ 24,625 $ 10,120 $ 41,431 $ 20,430
=== ============== ============== ============== =============
Ratio of expenses to average net assets
(net of expense reimbursements)** 1.48% 1.48% 1.29% 1.29%
==== ==== ==== ====
Ratio of net investment income to average
net assets (net of expense reimbursement)** 0.84% 1.04% 1.18% 1.25%
==== ==== ==== ====
Portfolio turnover rate 92.93% 152.21% 78.93% 133.18%
===== ====== ===== ======
</TABLE>
See Accompanying Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
Intermediate Fixed
Balanced Portfolio Income Portfolio
For the six For the period For the six For the period
months ended ended months ended ended
09/30/95 03/31/95* 09/30/95 03/31/95*
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 12.96 $ 12.00 $ 12.00 $ 12.00
Income from investment operations
Net investment income 0.20 0.30 0.30 0.57
Net realized and unrealized gains
on investments 1.74 1.13 0.37
---- ---- ----
Total from investment operations 1.94 1.43 0.67 0.57
---- ---- ---- ----
Distributions
From net investment income (0.18) (0.31) (0.30) (0.57)
From net realized gains (0.44) (0.16) 0.00
----- ----- ----
Total distributions (0.62) (0.47) (0.30) (0.57)
----- ----- ----- -----
Net asset value, end of period $ 14.28 $ 12.96 $ 12.37 $ 12.00
============= ============= ============ ============
Total return (not annualized) 15.28% 12.23% 6.13% 4.92%
===== ===== ==== ====
Net assets at end of period (in 000 s) $ 20,237 $ 13,724 $ 7,524 $ 6,370
=== ============== ============ ========= =========
Ratio of expenses to average net assets
(net of expense reimbursements)** 1.19% 1.19% 0.95% 0.95%
==== ==== ==== ====
Ratio of net investment income to average
net assets (net of expense reimbursement)** 2.96% 3.04% 5.90% 5.57%
==== ==== ==== ====
Portfolio turnover rate 59.61% 92.40% 3.54% 5.21%
===== ===== ==== ====
<FN>
* From commencement of
operations on May 10, 1994.
**Annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
<PAGE>
Notes to Financial Statements
Rainier Investment Management Mutual Funds
September 30, 1995
Note 1. Organization
Rainier Investment Management Mutual Funds (the Trust ) was organized as a
business trust in Delaware on December 15, 1993 and is registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company. The Trust consists of four separate series of portfolios: Small/Mid Cap
Equity Portfolio, Core Equity Portfolio, Balanced Portfolio, and Intermediate
Fixed Income Portfolio (each a Fund and collectively the Funds ).
Note 2. Significant Accounting Policies The following is a summary of
significant accounting policies consistently followed by the Funds. A)
Securities Valuation: Equity securities are valued at the last sale price (for
exchange-listed securities) or the last bid price (if lacking any sales and for
over-the-counter securities). Debt securities generally are valued at the mean
between the last bid and asked prices. Securities with 60 days or less remaining
to maturity are valued on an amortized cost basis. Securities for which market
quotations are not readily available are valued at fair value as determined in
good faith by or under the direction of the Board of Trustees. B) Securities
Transactions, Dividends and Distributions: Security transactions are recorded on
trade date. Dividend income is recognized on the ex-dividend date, and interest
income is recorded on an accrual basis. Distributions to shareholders are
recorded on the ex-dividend date. C) Federal Income Taxes: The Funds intend to
comply with the requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute all of their taxable income to
the shareholders of the Funds. Therefore, no provision is made for Federal
income or excise taxes.
D) Deferred Organization Costs: Organization costs of $89,500 have been
capitalized as of April 8, 1994 and are being amortized over a period of 60
months beginning on the date the Funds registration became effective. Rainier
Investment Management, Inc. (the Investment Advisor ) has agreed that, in the
event any of the initial shares are redeemed during the 60-month period for
amortizing the Funds organization costs, the proceeds will be reduced for the
unamortized balances of such costs in the same proportion as the number of
shares redeemed bears to the number of initial shares outstanding at the time of
redemption.
Note 3. Investment Management Fee
And Other Transactions
A) Investment Management Agreement:
The Trust, on behalf of the Funds, has entered into an investment management
agreement with the Investment Advisor. Under the terms of the agreement, the
Trust will pay a fee equal to the following annual percentages of average net
assets:
<TABLE>
<S> <C>
Small/Mid Cap Equity Portfolio 0.85%
Core Equity Portfolio 0.75%
Balanced Portfolio 0.70%
Intermediate Fixed Income Portfolio 0.50%
</TABLE>
Although not required to do so, the Investment Advisor has agreed to waive
or reimburse the expenses of each Fund to the extent necessary so that its ratio
of operating expenses to average net assets will not exceed the following
levels. Overall operating expense for each Fund will not fall below the
applicable percentage limitation until the Investment Advisor has been fully
reimbursed for fees foregone and expenses paid by the Investment Advisor under
this agreement:
<TABLE>
<S> <C>
Small/Mid Cap Equity Portfolio 1.48%
Core Equity Portfolio 1.29%
Balanced Portfolio 1.19%
Intermediate Fixed Income Portfolio 0.95%
</TABLE>
These percentages are based on the average net assets of the Funds,
exclusive of interest, taxes, brokerage commissions, extraordinary expenses and
sales charges. This agreement may be terminated by either party upon 60 days
written notice.
<PAGE>
B) Distribution Plan: The Trust, on behalf of the Funds, has approved a
Distribution Plan (the Plan ) in accordance with Rule 12b-1 under the 1940 Act.
The Plan provides that the Funds will pay a fee to the Investment Advisor at an
annual rate of up to 0.25% of each Fund s average daily net assets. The fee is
paid to the Investment Advisor as reimbursement for, or in anticipation of,
expenses incurred for distribution-related activities. C) Administrative Service
Agreement: The Trust, on behalf of the Funds, has entered into an administrative
services agreement with an unrelated third party. Under the terms of the
agreement, the Trust will pay a monthly fee based on the greater of $40,000
annual minimum or the annual rate of 0.10% of average net assets..
Note 4. Purchases and Sales of Securities
The aggregate proceeds from purchases and sales of investment securities, other
than short-term obligations and
U.S. Government securities, for the six months ended September 30, 1995
were as follows:
<TABLE>
<CAPTION>
Fund Purchases Sales
<S> <C> <C>
Small/Mid Cap Equity Portfolio $24,441,500 $13,095,450
Core Equity Portfolio 38,752,267 22,775,677
Balanced Portfolio 14,114,831 8,542,787
Intermediate Fixed Income Portfolio 918,116 229,472
</TABLE>
Balanced Portfolio and Intermediate Fixed Income Portfolio purchased $
1,495,591 and $822,422, respectively, and sold $397,313 and $121,641,
respectively, of U.S. Government securities. There were no purchases or sales of
U.S. Government securities by the Small/Mid Cap Equity Portfolio and Core Equity
Portfolio. The aggregate unrealized appreciation and depreciation of portfolio
securities at September 30, 1995, based on costs for federal income tax purposes
which are same as book costs, were as follows:
<TABLE>
<CAPTION>
Gross Gross
Unrealized Unrealized
Fund Appreciation Depreciation
<S> <C> <C>
Small/Mid Cap Equity Portfolio $1,124,949 $ 102,984
Core Equity Portfolio 3,327,468 113,839
Balanced Portfolio 1,210,231 90,902
Intermediate Fixed Income Portfolio 193,565
</TABLE>
Note 5. Related Party Transactions
Certain officers and Trustees of the Funds
are also officers and/or members of the Board of Directors of the Investment
Advisor. Outside Trustees are compensated by the Trust at the total rate of
$4,000 per year plus $250 for each meeting of the Board of Trustees attended and
any travel expenses incurred in such meetings.
Index Descriptions
The Standard & Poor s 500 Stock Index is an unmanaged index composed of 500
industrial, utility, transportation, and financial companies of the U.S.
markets. The Index represents about 75% of New York Stock Exchange ( NYSE )
market capitalization and 30% of NYSE issues. It is a capitalization-weighted
index calculated on a total return basis with dividends reinvested. The Russell
Mid-Cap Index(tm) is an unmanaged index composed of the equities of companies
ranging in value from approximately $530 million to $5.6 billion, as of June 30,
1995. The Lehman Brothers Government/Corporate Intermediate Bond Index ( Lehman
Intermediate Bond Index ) is an unmanaged index composed of all bonds covered by
the Lehman Brothers Government/Corporate Index with maturities between one and
9.99 years. The Consumer Price Index ( CPI ) is a measure of change in consumer
prices as determined by a monthly survey of the U.S Bureau of Labor Statistics.
The Salomon Brothers 3-Month Treasury Bill Index ( 91-Day U.S. Treasury Bill
Index ) is an unmanaged index of equal dollar amounts of three-month Treasury
bills purchased at the beginning of each of three consecutive months. The
Balanced Index consists of 50% Standard & Poor s 500 Stock Index, 40% Lehman
Brothers Intermediate Government/Corporate Bond Index, 10% 91-Day U.S. Treasury
Bill Index.
Directory of Funds Service Providers
Investment Advisor
Rainier Investment Management, Inc.,(r)
601 Union Street, Suite 2801,
Seattle, WA 98101
Distributor
First Fund Distributors, Inc.,
4455 E. Camelback Road,
Suite 261-E,
Phoenix, AZ 85018
Administrator
Investment Company Administration Corporation,
2025 E. Financial Way,
Suite 101,
Glendora, CA 91741
Custodian, Transfer Agent and Fund
Accountant
Firstar Trust Company,
615 E. Michigan Street,
Milwaukee, WI 53202
Independent Auditors
KPMG Peat Marwick LLP,
3100 Two Union Square,
601 Union Street,
Seattle, WA 98101
Legal Counsel
Heller Ehrman White & McAuliffe,
333 Bush Street,
San Francisco, CA 94104
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