<PAGE>
November 18, 1998
Dear Shareholders,
We are pleased to provide this semi-annual report for the six months ended
October 31, 1998. It was a tumultuous period, but one which reinforced a couple
of investing truths. First, diversifying one's portfolio among different asset
classes can be an excellent way to spread risk and potentially reduce
volatility. And second, investors who remain committed to their long-term plans
and don't jump in and out of fluctuating markets, i.e. market time, are often
rewarded for their patience.
Along with turbulent markets, the last six months saw significant, positive
change for the Centura Funds. On August 1, the names of two Centura equity funds
were changed to more clearly define their investment objectives. The Centura
Equity Income Fund is now the Centura Large Cap Equity Fund, and the Centura
Equity Growth Fund has become the Centura Mid Cap Equity Fund. By taking these
steps, we seek to eliminate overlap in Fund holdings, improve equity style
diversification for our shareholders, provide better defined and more easily
understood investment portfolios, and ultimately, make available a broader range
of funds that can more fully support our shareholders' long-term investment
strategies.
As indicated by their names, each of Centura's three equity funds now invest
in companies with a distinct size range, a well-defined universe and benchmark
and, thus, offer minimal overlap of holdings. The size of a company for purposes
of investing is defined by its MARKET CAPITALIZATION, often abbreviated as
market cap. A company's market capitalization is simply the total value placed
on it by the investing public. It is calculated by taking a company's share
price and multiplying it by the number of shares outstanding. It is, therefore,
a dynamic, moving target.
The relevance of the divisions between large, mid, and small cap stocks has
been clearly demonstrated this year. As you read about the performance of each
equity Centura Fund, and its corresponding benchmark (each of which relates
strongly to market cap), you will note significant performance differences.
These differences demonstrate that different market cap sectors behave
differently, especially in volatile markets. The impossibility of consistently
predicting market direction, and how different capitalization styles will
respond, provides a compelling argument for diversification. By seeking to
provide consistency and discipline to the investment process, Centura Funds seek
to be an ideal type of vehicle to which investors may allocate their dollars to
help meet long-term goals.
An addition to our fund family was introduced June 1, the Centura Money
Market Fund. This fund offers shareholders an option for "parking" excess cash
at very competitive money market rates. We view this as a natural extension of
our fund family and believe that all of our recent actions are consistent with
our desire to provide value to our shareholders.
BUT IT'S DIFFERENT THIS TIME...
During the last six months, stocks, as defined by either the Dow Jones
Industrial Average or the Standard & Poor's 500 Index(1), took equity investors
on a breathtaking ride. From the Dow's intra-day peak of 9,367.84, reached on
July 20, investors would face two sharp declines, eliminating 1998's gains in
excess of 19 percent for the Dow and 23 percent for the S&P 500 in less than two
months. In both early September and early October, the Dow visited the 7,400
level, finally reacting to problems which had been brewing for months.
Unrealistically high corporate profit expectations, the economic situation in
Asia and South America, or outright implosion in Russia and Indonesia, and the
threat of a global credit crunch, all conspired to deflate domestic and
international stock markets, sending equities into an emotionally driven
tailspin. Middle and small capitalized companies were hit even worse, with small
cap companies experiencing declines not witnessed since the 1973-74 bear market.
But, continuing the trend this Great Bull Market began over 17 years ago, the
month of October saw the Dow close at 8,592.1, regaining well
- ------------
(1) The S&P 500 Index is an unmanaged index generally representative of the
domestic stock market.
<PAGE>
over 1,000 Dow points in just three weeks, mystifying many market pundits who
saw no road blocks to Dow 6,000.
No, it was not Louis Rukeyser's return from vacation which would propel the
market higher, but the globe's financial superhero, Alan Greenspan, who, with
the help of the Federal Reserve Board, lowered interest rates not once, but
twice in a matter of weeks. This proved bonds a valuable asset allocation tool,
for when stocks swooned, fixed-income securities, especially U.S. Treasury
issues, became the investment of choice for investors around the world. The
resulting rise in bond prices provided fixed-income investors with returns that
were indeed generous by historical standards.
Looking forward, we believe the bull market will remain intact and that bond
investors will continue to receive adequate inflation-adjusted returns. The key,
however, is to remain invested in a manner consistent with your long-term goals
and objectives. Many of you have no doubt heard of at least one notable money
manager who went to cash early, only to reinvest just before the correction. We
believe market timing simply does not work. Our crystal ball is no better than
anyone elses, which is why we do not rely on it. At Centura we strive to manage
your money prudently, consistently, and through an easily understood investment
process. We are not, nor do we care to be, a haven for "hot money." We are proud
to serve investors who share our long-term investment objective and look forward
to the opportunity to serve you.
CENTURA MID CAP EQUITY FUND
(formerly Centura Equity Growth Fund)
In order to maintain a well defined mid-cap discipline the Fund will focus
on companies within its performance benchmark, the S&P MidCap 400 Index(2), as
well as other companies within a comparable market capitalization range (roughly
$500 million to $28 billion at present) which aren't included in the S&P 500 or
S&P 600 SmallCap indexes(3). Sector weightings within the Fund will approximate
those of its benchmark.
Historically, smaller stock investments come with a higher degree of
volatility, but also a higher level of growth potential. Due to their smaller
size mid-cap companies are often more nimble than larger organizations and can
take advantage of market opportunities more quickly. They generally focus on
DOING A BETTER JOB with a more limited number of products and services. Their
geographic span is typically more limited as well. However, this can also be an
advantage. For example, over the last year, many smaller companies with purely
domestic operations haven't had to worry as much about exposure to Asia, unlike
many larger, multinational corporations.
CENTURA LARGE CAP EQUITY FUND
(formerly Centura Equity Income Fund)
As part of the Fund's refined investment orientation, we target stocks that
are included in our benchmark, the S&P 500 Index. This is not to say that we
will own ALL stocks of the index. As of October 31, 1998, the portfolio held 108
equity issues compared to 500 stocks represented in the index. We intend to own
stocks within each sector of the S&P 500 that we believe offer the best
opportunity for growth relative to their price. We believe that our "growth at a
reasonable price" strategy, investing within a well defined equity universe, and
maintaining sector weightings comparable to our benchmark offers shareholders
the
- ---------------
(2) The S&P 400 MidCap Index is an unmanaged index generally representative of
domestically traded common stocks of mid-sized companies.
(3) The S&P 600 SmallCap Index is an unmanaged index generally representative of
domestically traded common stocks of small-sized companies.
2
<PAGE>
opportunity to outperform the unmanaged benchmark index while reducing the
chance for significant underperformance.
CENTURA SOUTHEAST EQUITY FUND
The Southeast Equity Fund invests in small companies headquartered, or
engaged in substantial operations, in the southeastern United States, including
Texas.** We concentrate on the most prominently represented sectors in our
benchmark, the Russell 2000, an index of 2000 small company stocks(4). These
sectors include utilities, communication services, financials, transportation,
capital goods, basic industries, energy, consumer staples, consumer cyclicals,
health care and technology. Furthermore, we narrow our focus to those companies
that we believe offer the most promising "emerging growth" characteristics in
their respective areas.
Despite the inherent risk of a regional equity fund due to the close
proximity of the companies' geographical location, we feel there are definite
advantages to concentrating on a single region, as we do, rather than the entire
universe of publicly traded companies. In addition to the advantages of focusing
on companies IN OUR OWN BACK YARD, the size and robust strength of the Southeast
economy provides ample dynamic growth opportunities for the companies we target.
The Fund's performance was helped by the fact that we reduced our holdings
in economically sensitive stocks, such as those in the capital goods sector, in
anticipation of a slowdown in the U.S. economy. Instead, we focused on companies
with high, internally generated cash flows -- firms with the ability to finance
additional growth without relying on external funding sources. We were drawn to
companies with strong balance sheets, high levels of free cash flow and dominant
market positions.
CENTURA FEDERAL SECURITIES INCOME FUND
As of October 31, 1998, approximately 13.5% of the fund's assets were
invested in U.S. Treasury securities, 81.1% in securities issued by U.S.
Government agencies and 6.4% in cash or cash equivalents. The average weighted
maturity of the fund's holdings was 4.31 years.
The Fund's performance was impacted by significant U.S. Agency investments
relative to U.S. Treasury paper. In August, investors flocked to the security of
U.S. Treasuries due to widespread uncertainty about world economies. This caused
yield spreads on agency debt -- the excess yields offered by agency securities
over Treasury securities of similar maturities -- to widen significantly. This
meant that the price of Treasuries went up faster than the price of agency
securities.
Overall, however, we believe the fund performed well. During the period, we
increased the average maturity of the fund slightly. This reflected our belief
that, as the domestic economy slowed due to the turmoil in Asia and its impact
on the global economy, the fixed-income arena would be the place to be; in fact,
our analysis proved to be correct. Our strategy helped us capture greater price
appreciation as interest rates fell (bond prices and interest rates move in
opposite directions).
Looking forward, we believe that the real key to economic recovery in Asia
is Japan. The Japanese appear to be making some real progress toward cleaning up
their problems, especially in the banking system. When the Japanese recovery
takes hold, it will bode well for the rest of Asia and, indeed, the rest of the
world.
As for our domestic economy, we still feel the Federal Reserve is concerned
about a credit crunch and will take the steps necessary to ease credit. The bond
market has already factored future interest-rate
- ------------
** Small-capitalization funds typically carry additional risks, since smaller
companies generally have a higher risk of failure. Historically, smaller
companies' stocks have experienced greater-than-average market volatility.
(4) The Russel 2000 Index is an unmanaged index generally representative of
domestically traded common stocks of small-to mid- sized companies.
3
<PAGE>
reductions into bond prices, though we're not completely certain that the Fed
will lower rates yet again in the near future.
CENTURA NORTH CAROLINA TAX-FREE BOND FUND*
As of October 31, 1998, approximately 44.3% of the fund's assets were
invested in general obligation bonds, 12.6% in certificates of participation,
29.5% in revenue bonds and 1.2% in cash or cash equivalents. Credit quality
remained excellent, with 68.0% in AAA-rated bonds, 24.0% in AA-rated bonds and
8.0% in A-rated bonds. The average weighted maturity of the fund's holdings was
6.74 years.
During the period, municipal spreads -- the excess yields for municipal
bonds over U.S. Treasury securities of like maturities -- widened some, but not
nearly as much as in other bond sectors. This caused municipal securities to
perform very well over the last six months.
Historically, the North Carolina municipal market has always offered
high-quality issues. For that
reason, these bonds generally come with lower yields than municipal issues from
other states. Nonetheless, we've worked to provide our shareholders with yields
that are very attractive on a tax-free basis. Additionally, with inflation
remaining low, our shareholders have enjoyed real returns (total return minus
the rate of inflation) that are quite generous compared to prior years.
We have also maintained the fund's high rating. We are not running a
high-yield junk bond fund. Most of the bonds we own are rated AAA. The fund has
had low turnover, which kept our expenses low.
CENTURA MONEY MARKET FUND+
The Centura Money Market Fund was opened to investors on June 1, 1998. As of
October 31, 1998, the fund's 7-day yield was 5.13%. The average maturity of the
fund's holdings was 65 days.
Our overall objective is to provide high current income, while maintaining
the highest-possible degree of safety. The fund invests in commercial paper,
overnight agency debt and repurchase agreements ("repos"), and government
discount agency securities. We also use another money market fund as an
overnight "sweep" vehicle.
At the end of the period, we were finding some very good values among the
discount agency issues on our buy list, so we were purchasing a significant
quantity of this type of security. We believe that when you can get good rates
on such high-quality debt, it's time to buy.
Also, in response to falling interest rates, we extended the portfolio's
average maturity in an effort to lock in a higher yield for our shareholders.
OUR STRATEGY FOR THE FUTURE
With economies throughout the world still gripped by uncertainly and, in
some instances, utter turmoil, where do we go from here? To put it simply, we
keep moving forward, though cautiously.
We are not market timers. We believe that trying to jump in and out of
stocks and bonds, in an attempt to catch just the right move, often backfires.
Individual investors often make their decisions emotionally, rather than
rationally -- and pay for their lack of patience. They sell stocks and stock
mutual funds when the market is down, and prices are relatively attractive, and
buy them again when the market has recovered, and prices are relatively
expensive.
Contrary to this behavior, we spend a great deal of time and energy doing
our homework. We carefully and prudently examine every available opportunity we
find in the equity and fixed-income
- ---------------
* The fund's income may be subject to certain state and local taxes and,
depending on your tax status, the federal alternative minimum tax.
Investing in a regional fund may involve more risk, since the companies are
located within the same geographical area.
+ An investment in the fund is not insured or guaranteed by the FDIC or any
other government agency. Although the fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
the fund.
4
<PAGE>
markets, then make our buy or sell decisions based on a long-term outlook.
Generally speaking, we are not concerned with how the markets might behave
tomorrow or next week; we are very committed to exploiting stocks' and bonds'
growth potential over the next year, five years and so forth. We believe we have
employed this strategy successfully through up and down market cycles and
believe it is the path we must take if we are to continue to help the Centura
Fund's shareholders meet their investment goals.
We thank you for your continued support.
Sincerely,
Your Investment Advisors
FIXED INCOME TEAM EQUITY TEAM
- ------------------------------ ------------------------------
C. Nathaniel Siewers Daniel H. Cole
Peter A. Strzalkowski Ted A. Ponko
Terry W. Wall Forbes L. Watson
5
<PAGE>
MID CAP EQUITY FUND
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
CLASS A CLASS A S&P MIDCAP LIPPER
<S> <C> <C> <C> <C> <C>
without Load with Load(a) S&P 500* 400* Growth Average*
31-Dec-90 $10,000 $9,554 $10,000 $10,000 $10,000
31-Dec-91 $13,032 $12,439 $13,055 $15,010 $13,748
31-Dec-92 $15,060 $14,179 $14,056 $16,798 $14,915
31-Dec-93 $17,717 $16,911 $15,460 $19,143 $16,563
31-Dec-94 $16,422 $15,690 $15,663 $18,459 $16,267
31-Dec-95 $21,853 $20,859 $21,525 $24,171 $21,324
31-Dec-96 $27,096 $25,862 $26,492 $28,812 $25,521
31-Dec-97 $34,691 $33,130 $35,330 $38,106 $31,962
31-Oct-98 $35,098 $33,500 $40,499 $38,572 $34,612
(a)Return reflects maximum sales load of
4.50%
AVERAGE ANNUAL SINCE
TOTAL RETURN 1 YEAR 5 YEAR INCEPTION
Class A without Load 7.31% 15.48% 17.39%
Class A with Load 2.46% 14.43% 16.69%
S&P MidCap 400 6.71% 15.57% 18.81%
Lipper Mid-Cap Average (2.89)% 11.59% 15.53%
S&P 500 22.00% 21.31% 19.55%
Lipper Growth Average 8.29% 15.66% 16.85%
<CAPTION>
LIPPER MID-CAP
<S> <C>
Average*
31-Dec-90 $10,000
31-Dec-91 $14,628
31-Dec-92 $16,288
31-Dec-93 $18,663
31-Dec-94 $18,409
31-Dec-95 $24,081
31-Dec-96 $28,433
31-Dec-97 $34,131
31-Oct-98 $32,752
(a)Return reflects maximum sales load of
4.50%
AVERAGE ANNUAL
TOTAL RETURN
Class A without Load
Class A with Load
S&P MidCap 400
Lipper Mid-Cap Average
S&P 500
Lipper Growth Average
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
CLASS B CLASS B S&P MIDCAP
<S> <C> <C> <C> <C>
without Load with Load(b) S&P 500* 400*
31-Dec-90 $10,000 $9,500 $10,000 $10,000
31-Dec-91 $12,982 $12,482 $13,055 $15,010
31-Dec-92 $14,941 $14,541 $14,056 $16,798
31-Dec-93 $17,521 $17,221 $15,460 $19,143
31-Dec-94 $15,984 $15,784 $15,663 $18,459
31-Dec-95 $21,288 $21,188 $21,525 $24,171
31-Dec-96 $26,232 $26,232 $26,492 $28,812
31-Dec-97 $33,056 $33,056 $35,330 $38,106
31-Oct-98 $33,531 $33,531 $40,499 $38,572
(b)Return reflects the appropriate contingent
deferred sales charge (maximum deferred sales load is
5.00%)
AVERAGE ANNUAL SINCE
TOTAL RETURN 1 YEAR 5 YEAR INCEPTION
Class B without Load 6.51% 14.68% 16.70%
Class B with Load 2.41% 14.57% 16.70%
S&P MidCap 400 6.71% 15.57% 18.81%
Lipper MidCap Average (2.89)% 11.59% 15.53%
S&P 500 22.00% 21.31% 19.55%
Lipper Growth Average 8.29% 15.66% 16.85%
<CAPTION>
LIPPER LIPPER MID-CAP
<S> <C> <C>
Growth Average* Average*
31-Dec-90 $10,000 $10,000
31-Dec-91 $13,748 $14,628
31-Dec-92 $14,915 $16,288
31-Dec-93 $16,563 $18,633
31-Dec-94 $16,267 $18,409
31-Dec-95 $21,324 $24,081
31-Dec-96 $25,521 $28,433
31-Dec-97 $31,962 $34,131
31-Oct-98 $34,612 $32,752
(b)Return reflects the appropriate contingent
deferred sales charge (maximum deferred sales load is
5.00%)
AVERAGE ANNUAL
TOTAL RETURN
Class B without Load
Class B with Load
S&P MidCap 400
Lipper MidCap Average
S&P 500
Lipper Growth Average
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P MIDCAP LIPPER LIPPER MID-CAP
<S> <C> <C> <C> <C> <C>
Class C (No Load) S&P 500* 400* Growth Average* Average*
31-Dec-90 $10,000 $10,000 $10,000 $10,000 $10,000
31-Dec-91 $13,102 $13,055 $15,010 $13,748 $14,628
31-Dec-92 $15,217 $14,056 $16,798 $14,915 $16,288
31-Dec-93 $17,990 $15,460 $19,143 $16,563 $18,633
31-Dec-94 $16,546 $15,663 $18,459 $16,267 $18,409
31-Dec-95 $22,259 $21,525 $24,171 $21,324 $24,081
31-Dec-96 $27,680 $26,492 $28,812 $25,521 $28,433
31-Dec-97 $35,176 $35,330 $38,106 $31,962 $34,131
31-Oct-98 $36,055 $40,499 $38,572 $34,612 $32,752
AVERAGE ANNUAL SINCE
TOTAL RETURN 1 YEAR 5 YEAR INCEPTION
Class C (No Load) 7.59% 15.78% 17.79%
S&P MidCap 400 6.71% 15.57% 18.81%
Lipper Mid-Cap Average (2.89)% 11.59% 15.53%
S&P 500 22.00% 21.31% 19.55%
Lipper Growth Average 8.29% 15.66% 16.85%
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RETURNS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THE ORIGINAL COST.
* The S&P 500 is an unmanaged index generally representative of the domestic
stock market. The S&P MIDCAP 400 is an unmanaged index generally
representative of the domestically traded common stocks of mid-size
companies. The LIPPER MID-CAP AVERAGE and the LIPPER GROWTH AVERAGE is
representative of the average of the total returns reported by all of the
mutual funds designated by Lipper Analytical Services, Inc. as falling
into their respective category.
Due to change in investment policies, going forward the S&P 500 and Lipper
Growth Average will be replaced by S&P MidCap 400 and Lipper Mid-Cap Average
because of their better representation of the Fund's new investment policies.
Previously used indices are shown here for transitional purposes.
The inception date for performance purposes is December 31, 1990. The quoted
performance of the Centura Equity Growth Fund includes performance of certain
collective trust funds ("Commingled Accounts") advised by Centura Bank prior to
the establishment of the Fund on June 1, 1994. On that date, the assets of the
Commingled Accounts were transferred to the Fund in connection with its
commencement of operations. The Commingled Accounts were operated using
substantially the same investment objective, policies and techniques of the
Fund. During that time, the Commingled Accounts were not registered under the
Investment Company Act of 1940 (the "1940 Act") and therefore were not subject
to certain investment restrictions that are imposed under the 1940 Act. If the
Commingled Accounts had been registered under the 1940 Act, the Commingled
Accounts' performance may have been adversely affected. Because the Commingled
Accounts did not charge any expenses, its performance has been adjusted to
reflect the Fund's estimated expenses at the time of its inception, which were
1.25%, 2.00% and 1.00% of average daily net assets for Class A, Class B and
Class C, respectively. The performance information for the period subsequent to
the Fund's inception also assumes reinvestment of all net investment income and
realized capital gains and takes into account actual expenses of the appropriate
share class.
The total return set forth may reflect the waiver of a portion of the fund's
fees for certain periods. Without the waiver of fees, returns would have been
lower.
6
<PAGE>
LARGE CAP EQUITY FUND
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
CLASS A CLASS A LIPPER LARGE-CAP
<S> <C> <C> <C> <C>
without Load with Load(a) S&P 500* Equity Average*
31-Dec-90 $10,000 $9,547 $10,000 $10,000
31-Dec-91 $11,822 $11,285 $13,055 $12,701
31-Dec-92 $13,002 $12,411 $14,056 $14,009
31-Dec-93 $14,617 $13,953 $15,460 $16,007
31-Dec-94 $14,526 $13,868 $15,663 $15,719
31-Dec-95 $18,551 $17,707 $21,525 $20,519
31-Dec-96 $22,264 $21,252 $26,492 $24,459
31-Dec-97 $29,618 $28,278 $35,330 $31,119
31-Oct-98 $29,117 $27,793 $40,499 $32,551
(a) Return reflects maximum sales load of
4.50%
AVERAGE ANNUAL SINCE
TOTAL RETURN 1 YEAR 5 YEAR INCEPTION
Class A without Load 8.70% 14.71% 14.62%
Class A with Load 3.84% 13.67% 13.94%
S&P 500 22.00% 21.31% 19.55%
Lipper Large Cap Equity Average 9.49% 14.95% 16.05%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
CLASS B CLASS B
<S> <C> <C> <C>
without Load with Load(b) S&P 500*
31-Dec-90 $10,000 $9,500 $10,000
31-Dec-91 $11,771 $11,271 $13,055
31-Dec-92 $12,877 $12,477 $14,056
31-Dec-93 $14,406 $14,106 $15,460
31-Dec-94 $14,083 $13,883 $15,663
31-Dec-95 $18,089 $17,989 $21,525
31-Dec-96 $21,592 $21,592 $26,492
31-Dec-97 $28,046 $28,046 $35,330
31-Oct-98 $27,842 $27,842 $40,499
(b)Return reflects the appropriate contingent deferred sales charge
(maximum
deferred sales load is 5.00%)
AVERAGE ANNUAL SINCE
TOTAL RETURN 1 YEAR 5 YEAR INCEPTION
Class B without Load 7.87% 14.02% 13.97%
Class B with Load(b) 3.05% 13.90% 13.97%
S&P 500 22.00% 21.31% 19.55%
Lipper Large-Cap Equity Average 9.49% 14.95% 16.05%
<CAPTION>
LIPPER LARGE-CAP
<S> <C>
Equity Average*
31-Dec-90 $10,000
31-Dec-91 $12,701
31-Dec-92 $14,009
31-Dec-93 $16,007
31-Dec-94 $15,719
31-Dec-95 $20,519
31-Dec-96 $24,459
31-Dec-97 $31,119
31-Oct-98 $32,551
(b)Return reflects the appropriate contingent deferred sales charge
(maximum
deferred sales load is 5.00%)
AVERAGE ANNUAL
TOTAL RETURN
Class B without Load
Class B with Load(b)
S&P 500
Lipper Large-Cap Equity Average
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
CLASS C LIPPER LARGE-CAP
<S> <C> <C> <C>
(No Load) S&P 500* Equity Average*
31-Dec-90 $10,000 $10,000 $10,000
31-Dec-91 $11,898 $13,055 $12,701
31-Dec-92 $13,134 $14,056 $14,009
31-Dec-93 $14,861 $15,460 $16,007
31-Dec-94 $14,651 $15,663 $15,719
31-Dec-95 $19,019 $21,525 $20,519
31-Dec-96 $22,923 $26,492 $24,459
31-Dec-97 $30,049 $35,330 $31,119
31-Oct-98 $30,116 $40,499 $32,551
AVERAGE ANNUAL SINCE
TOTAL RETURN 1 YEAR 5 YEAR INCEPTION
Class C (No Load) 8.97% 15.14% 15.11%
S&P 500 9.49% 14.95% 19.55%
Lipper Large-Cap Equity Average 22.00% 21.31% 16.05%
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RETURNS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THE ORIGINAL COST.
* The S&P 500 is an unmanaged index generally representative of the domestic
stock market. The LIPPER LARGE CAP EQUITY AVERAGE is representative of the
average of the total returns reported by all of the mutual funds
designated by Lipper Analytical Services, Inc. as falling into this
category.
The inception date for performance purposes is December 31, 1990. The quoted
performance of the Centura Equity Income Fund includes performance of certain
collective trust funds ("Commingled Accounts") advised by Centura Bank prior to
the establishment of the Fund on June 1, 1994. On that date, the assets of the
Commingled Accounts were transferred to the Fund in connection with its
commencement of operations. The Commingled Accounts were operated using
substantially the same investment objective, policies and techniques of the
Fund. During that time, the Commingled Accounts were not registered under the
Investment Company Act of 1940 (the "1940 Act") and therefore were not subject
to certain investment restrictions that are imposed under the 1940 Act. If the
Commingled Accounts had been registered under the 1940 Act, the Commingled
Accounts' performance may have been adversely affected. Because the Commingled
Accounts did not charge any expenses, its performance has been adjusted to
reflect the Fund's estimated expenses at the time of its inception, which were
1.00%, 1.75% and 0.75% of average daily net assets for Class A, Class B and
Class C, respectively. The performance information for the period subsequent to
the Fund's inception also assumes reinvestment of all net investment income and
realized capital gains and takes into account actual expenses of the appropriate
share class.
The total return set forth may reflect the waiver of a portion of the fund's
fees for certain periods. Without the waiver of fees, returns would have been
lower.
7
<PAGE>
SOUTHEAST EQUITY FUND
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LIPPER SMALL CAP
<S> <C> <C> <C> <C>
Class A without Load Class A with Load(a) Russell 2000 Index* Funds Average*
31-Dec-94 $10,000 9,550 $10,000 $10,000
31-Dec-95 $12,048 $11,499 $12,844 $13,208
31-Dec-96 $14,755 $14,083 $14,963 $15,854
31-Dec-97 $19,426 $18,542 $18,308 $19,138
31-Oct-98 $18,379 $17,543 $15,535 $16,639
(a)Return reflects maximum sales load of
4.50%.
AVERAGE ANNUAL
TOTAL RETURN
SINCE
1 YEAR INCEPTION
Class A without Load (3.78)% 17.22%
Class A with Load (8.11)% 15.81%
Russell 2000 Index (11.84)% 12.98%
Lipper Small Cap Funds Average (13.76)% 13.38%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
<S> <C> <C>
Class B without Load Class B with Load(b)
31-Dec-94 $10,000 9,500
31-Dec-95 $11,997 $11,497
31-Dec-96 $14,619 $14,219
31-Dec-97 $19,109 $18,809
31-Oct-98 $17,965 $17,765
(b)Return reflects the appropriate contingent deferred sales charge
(maximum
deferred sales load is 5.00%)
AVERAGE ANNUAL
TOTAL RETURN
SINCE
1 YEAR INCEPTION
Class B without Load (4.46)% 16.53%
Class B with Load (8.93)% 16.19%
Russell 2000 Index* (11.84)% 12.98%
Lipper Small Cap Funds Average* (13.76)% 13.38%
<CAPTION>
LIPPER SMALL CAP
<S> <C> <C>
Russell 2000 Index* Funds Average*
31-Dec-94 $10,000 $10,000
31-Dec-95 $12,844 $13,208
31-Dec-96 $14,963 $15,854
31-Dec-97 $18,308 $19,138
31-Oct-98 $15,535 $16,639
(b)Return reflects the appropriate contingent deferred sales charge
(maximum
deferred sales load is 5.00%)
AVERAGE ANNUAL
TOTAL RETURN
Class B without Load
Class B with Load
Russell 2000 Index*
Lipper Small Cap Funds Average*
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LIPPER SMALL CAP
<S> <C> <C> <C> <C>
Class C (No Load) Russell 2000 Index* Funds Average*
31-Dec-94 $10,000 $10,000 $10,000
31-Dec-95 $12,099 $12,844 $13,208
31-Dec-96 $14,894 $14,963 $15,854
31-Dec-97 $19,656 $18,308 $19,138
31-Oct-98 $18,630 $15,535 $16,639
AVERAGE ANNUAL
TOTAL RETURN
SINCE
1 YEAR INCEPTION
Class C without Load (3.59)% 17.64%
Russell 2000 Index (11.84)% 12.98%
Lipper Small Cap Funds Average (13.76)% 13.38%
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RETURNS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THE ORIGINAL COST.
* The RUSSELL 2000 INDEX is a broad-based unmanaged index that represents
the general performance of domestically traded common stocks of small- to
mid-size companies. The LIPPER SMALL CAP EQUITY AVERAGE is representative
of the average of the total returns reported by all of the mutual funds
designated by Lipper Analytical Services, Inc. as falling into this
category.
Investing in a regional fund may involve more risk, since the companies are
located within the same geographical area.
Small-capitalization funds typically carry additional risks, since smaller
companies generally have a higher risk of failure. Historically, smaller
companies' stocks have experienced greater-than-average market volatility.
The inception date for performance purposes is January 1, 1995. The quoted
performance of the Centura Southeast Equity Fund includes performance of certain
collective trust funds ("Commingled Accounts") advised by Centura Bank prior to
the establishment of the Fund on May 2, 1997. On that date, the assets of the
Commingled Accounts were transferred to the Fund in connection with its
commencement of operations. The Commingled Accounts were operated using
substantially the same investment objective, policies and techniques of the
Fund. During that time, the Commingled Accounts were not registered under the
Investment Company Act of 1940 (the "1940 Act") and therefore were not subject
to certain investment restrictions that are imposed under the 1940 Act. If the
Commingled Accounts had been registered under the 1940 Act, the Commingled
Accounts' performance may have been adversely affected. Because the Commingled
Accounts did not charge any expenses, its performance has been adjusted to
reflect the Fund's estimated expenses at the time of its inception, which were
1.50%, 2.25% and 1.25% of average daily net assets for Class A, Class B and
Class C, respectively. The performance information for the period subsequent to
the Fund's inception also assumes reinvestment of all net investment income and
realized capital gains and takes into account actual expenses of the appropriate
share class.
The total return set forth may reflect the waiver of a portion of the fund's
fees for certain periods. Without the waiver of fees, returns would have been
lower.
8
<PAGE>
FEDERAL SECURITIES INCOME FUND
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LIPPER
<S> <C> <C> <C>
Short-Intermediate
Class A without Load Class A with Load US Government Average*
31-Dec-90 $10,000 $9,725 $10,000
31-Dec-91 $11,111 $10,808 $11,299
31-Dec-92 $11,722 $11,401 $11,972
31-Dec-93 $12,479 $12,138 $12,815
31-Dec-94 $12,240 $11,906 $12,497
31-Dec-95 $13,860 $13,481 $14,072
31-Dec-96 $14,206 $13,818 $14,567
31-Dec-97 $15,210 $14,795 $15,548
31-Oct-98 $16,266 $15,822 $16,714
(a)Return reflects maximum sales load of 2.75%.
AVERAGE ANNUAL
TOTAL RETURN
SINCE
1 YEAR 5 YEAR INCEPTION
Class A without Load 8.08% 5.42% 6.41%
Class A with Load 5.08% 4.84% 6.03%
Lehman Brothers Intermediate 9.52% 7.49% 11.08%
Government Bond Index Average
Lipper Short-Intermediate US Government Average 7.17% 5.27% 6.37%
<CAPTION>
LEHMAN BROTHERS
<S> <C>
Intermediate Government
Bond Index*
31-Dec-90 $10,000
31-Dec-91 $11,411
31-Dec-92 $12,202
31-Dec-93 $13,199
31-Dec-94 $12,968
31-Dec-95 $14,836
31-Dec-96 $15,439
31-Dec-97 $16,631
31-Oct-98 $18,320
(a)Return reflects maximum sales load of 2.75%.
AVERAGE ANNUAL
TOTAL RETURN
Class A without Load
Class A with Load
Lehman Brothers Intermediate
Government Bond Index Average
Lipper Short-Intermediate US Government Average
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Class B without Load Class B with Load(a)
31-Dec-90 $10,000 $9,700
31-Dec-91 $11,056 $10,756
31-Dec-92 $11,609 $11,309
31-Dec-93 $12,293 $11,993
31-Dec-94 $11,984 $11,784
31-Dec-95 $13,467 $13,367
31-Dec-96 $13,712 $13,712
31-Dec-97 $14,591 $14,591
31-Oct-98 $15,545 $15,545
(b)Return reflects the appropriate contingent deferred sales charge (maximum
deferred
sales load is 3.00%)
AVERAGE ANNUAL
TOTAL RETURN
1 YEAR 5 YEAR
Lehman Brothers Intermediate Government Bond Index 9.52% 7.49%
Lipper Short-Intermediate US Government Average 7.17% 5.27%
Class B without Load 7.55% 4.76%
Class B with Load 4.55% 4.60%
<CAPTION>
LIPPER LEHMAN BROTHERS
<S> <C> <C>
Short-Intermediate Intermediate Government
US Government Average* Bond Index*
31-Dec-90 $10,000 $10,000
31-Dec-91 $11,299 $11,411
31-Dec-92 $11,972 $12,202
31-Dec-93 $12,815 $13,199
31-Dec-94 $12,497 $12,968
31-Dec-95 $14,072 $14,836
31-Dec-96 $14,567 $15,439
31-Dec-97 $15,548 $16,631
31-Oct-98 $16,714 $18,320
(b)Return reflects the appropriate contingent deferred sales charge (maximum
deferred
sales load is 3.00%)
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
Lehman Brothers Intermediate Government Bond Index 11.08%
Lipper Short-Intermediate US Government Average 6.37%
Class B without Load 5.79%
Class B with Load 5.79%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LIPPER LEHMAN BROTHERS
<S> <C> <C> <C>
Short-Intermediate Intermediate Government
Class C (No Load) US Government Average* Bond Index*
31-Dec-90 $10,000 $10,000 $10,000
31-Dec-91 $11,154 $11,299 $11,411
31-Dec-92 $11,836 $11,972 $12,202
31-Dec-93 $12,655 $12,815 $13,199
31-Dec-94 $12,457 $12,497 $12,968
31-Dec-95 $14,141 $14,072 $14,836
31-Dec-96 $14,545 $14,567 $15,439
31-Dec-97 $15,592 $15,548 $16,631
31-Oct-98 $16,714 $16,714 $18,320
AVERAGER ANNUAL
TOTAL RETURN
SINCE
1 YEAR 5 YEAR INCEPTION
Lehman Brothers Intermediate Government Bond Index 9.52% 7.49% 11.08%
Lipper Short-Intermediate US Government Average 7.17% 5.27% 6.37%
Class C (No Load) 8.35% 5.72% 6.78%
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RETURNS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THE ORIGINAL COST.
* The LEHMAN BROTHERS 5-INTERMEDIATE GOVERNMENT BOND INDEX is an unmanaged
index generally representative of the Government bond market. The LIPPER
SHORT-INTERMEDIATE U.S. GOVERNMENT AVERAGE is representative of the
average of the total returns reported by all of the mutual funds
designated by Lipper Analytical Services, Inc. as falling into this
category.
The inception date for performance purposes is December 31, 1990. The quoted
performance of the Centura Federal Securities Fund includes performance of
certain collective trust funds ("Commingled Accounts") advised by Centura Bank
prior to the establishment of the Fund on June 1, 1994. On that date, the assets
of the Commingled Accounts were transferred to the Fund in connection with its
commencement of operations. The Commingled Accounts were operated using
substantially the same investment objective, policies and techniques of the
Fund. During that time, the Commingled Accounts were not registered under the
Investment Company Act of 1940 (the "1940 Act") and therefore were not subject
to certain investment restrictions that are imposed under the 1940 Act. If the
Commingled Accounts had been registered under the 1940 Act, the Commingled
Accounts' performance may have been adversely affected. Because the Commingled
Accounts did not charge any expenses, its performance has been adjusted to
reflect the Fund's estimated expenses at the time of its inception, which were
0.94%, 1.69% and 0.69% of average daily net assets for Class A, Class B and
Class C, respectively. The performance information for the period subsequent to
the Fund's inception also assumes reinvestment of all net investment income and
realized capital gains and takes into account actual expenses of the appropriate
share class.
The total return set forth may reflect the waiver of a portion of the fund's
fees for certain periods. Without the waiver of fees, returns would have been
lower.
9
<PAGE>
NORTH CAROLINA TAX-FREE BOND FUND
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEHMAN BROTHERS LIPPER STATES
<S> <C> <C> <C> <C>
Class A Class A 5-year Municipal Intermediate
without Load with Load(a) Index* Municipal Average*
31-Dec-90 $10,000 $9,730 $10,000 $10,000
31-Dec-91 10,590 10,304 10,986 10,876
31-Dec-92 11,123 10,822 11,823 11,690
31-Dec-93 11,979 11,655 12,856 12,882
31-Dec-94 11,474 11,164 12,692 12,377
31-Dec-95 12,881 12,533 14,169 13,976
31-Dec-96 13,206 12,849 14,770 14,447
31-Dec-97 14,266 13,881 15,712 15,439
31-Oct-98 15,000 14,595 16,765 16,295
(a)Return reflects maximum sales load of
2.75%
AVERAGE ANNUAL SINCE
TOTAL RETURN 1 YEAR 5 YEAR INCEPTION
Class A without Load 7.19% 4.76% 5.37%
Class A with Load 4.26% 4.18% 5.00%
Lehman Brothers 5-year Municipal Index 6.77% 5.37% 6.85%
Lipper States Intermediate Municipal
Average 6.32% 4.82% 6.80%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEHMAN BROTHERS LIPPER STATES
<S> <C> <C> <C> <C>
Class B Class B 5-year Municipal Intermediate
without Load with Load (b) Index* Municipal Average*
31-Dec-90 $10,000 $9,700 $10,000 $10,000
31-Dec-91 10,548 10,248 10,986 10,876
31-Dec-92 11,027 10,727 11,823 11,690
31-Dec-93 11,838 11,538 12,856 12,882
31-Dec-94 11,268 10,968 12,692 12,377
31-Dec-95 12,556 12,356 14,169 13,976
31-Dec-96 12,775 12,775 14,770 14,447
31-Dec-97 13,729 13,729 15,712 15,439
31-Oct-98 14,381 14,381 16,765 16,295
(b)(Return reflects the appropriate
contingent
deferred sale charge (maximum deferred
slaes
load is 3.00%))
AVERAGE ANNUAL SINCE
TOTAL RETURN 1 YEAR 5 YEAR INCEPTION
Class B without Load 6.67% 4.15% 4.81%
Class B with Load 3.67% 3.98% 4.81%
Lehman Brothers 5-year Municipal Index 6.77% 5.37% 6.85%
Lipper States Intermediate Municipal
Average 6.32% 4.82% 6.80%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEHMAN BROTHERS LIPPER STATES
<S> <C> <C> <C>
Class C 5-year Municipal Intermediate
(No Load) Index* Municipal Average*
31-Dec-90 $10,000 $10,000 $10,000
31-Dec-91 10,635 10,986 10,876
31-Dec-92 11,224 11,823 11,690
31-Dec-93 12,153 12,856 12,882
31-Dec-94 11,685 12,692 12,377
31-Dec-95 13,152 14,169 13,976
31-Dec-96 13,517 14,770 14,447
31-Dec-97 14,634 15,712 15,439
31-Oct-98 15,423 16,765 16,295
AVERAGE ANNUAL SINCE
TOTAL RETURN 1 YEAR 5 YEAR INCEPTION
Class C (No Load) 7.46% 5.07% 5.75%
Lehman Brothers 5-year Municipal Index 6.77% 5.37% 6.85%
Lipper States Intermediate Municipal
Average 6.32% 4.82% 6.80%
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RETURNS. THE INVESTMENT RETURN AND
NAV WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THE ORIGINAL COST.
* The LEHMAN BROTHERS 5-YEAR MUNICIPAL INDEX is an unmanaged index generally
representative of the municipal bond market. The LIPPER STATES
INTERMEDIATE MUNICIPAL AVERAGE of the total returns reported by all of the
mutual funds designated by Lipper Analytical Services, Inc. as falling
into this category.
Investing in a regional fund may involve more risk, since the companies are
located within the same geographical area.
The Fund's income may be subject to certain state and local taxes and, depending
on your tax status, the federal alternative minimum tax.
The inception date for performance purposes is January 31, 1991. The quoted
performance of the Centura North Carolina Tax-Free Fund includes performance of
certain collective trust funds ("Commingled Accounts") advised by Centura Bank
prior to the establishment of the Fund on June 1, 1994. On that date, the assets
of the Commingled Accounts were transferred to the Fund in connection with its
commencement of operations. The Commingled Accounts were operated using
substantially the same investment objective, policies and techniques of the
Fund. During that time, the Commingled Accounts were not registered under the
Investment Company Act of 1940 (the "1940 Act") and therefore were not subject
to certain investment restrictions that are imposed under the 1940 Act. If the
Commingled Accounts had been registered under the 1940 Act, the Commingled
Accounts' performance may have been adversely affected. Because the Commingled
Accounts did not charge any expenses, its performance had been adjusted to
reflect the Fund's estimated expenses at the time of its inception, which were
1.04%, 1.79% and 0.79% of average daily net assets for Class A, Class B and
Class C, respectively. The performance information for the period subsequent to
the Fund's inception also assumes reinvestment of all net investment income and
realized capital gains and takes into account actual expenses of the appropriate
share class.
The total return set forth may reflect the waiver of a portion of the fund's
fees for certain periods. Without the waiver of fees, returns would have been
lower.
10
<PAGE>
CENTURA FUNDS, INC.
MID CAP EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
OCTOBER 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- --------------------------------------------------------------------------------- -------------
<C> <S> <C>
COMMON STOCKS -- 90.3%
AEROSPACE/DEFENSE -- 0.6%
15,000 ASA Holdings, Inc. .............................................................. $ 538,125
9,000 Litton Industries, Inc. (b) ..................................................... 587,250
-------------
1,125,375
-------------
BANKING & FINANCIAL SERVICES -- 9.9%
20,000 American Express Co. ............................................................ 1,767,500
26,000 Charter One Financial, Inc. ..................................................... 713,375
30,000 Dime Bancorp, Inc. .............................................................. 714,375
20,000 Finova Group, Inc. .............................................................. 975,000
200 First Tennessee National Corp. .................................................. 6,338
35,000 Firstar Corp. ................................................................... 1,986,249
27,000 Greenpoint Financial Corp ....................................................... 885,938
2,000 M & T Bank Corp. ................................................................ 997,000
25,000 Marshall & Ilsley Corp. ......................................................... 1,218,750
56,000 Mellon Bank Corp. ............................................................... 3,366,999
29,000 North Fork Bancorp., Inc. ....................................................... 576,375
22,000 Old Kent Financial Corp. ........................................................ 925,375
30,000 Paine Webber Group, Inc. ........................................................ 1,003,125
43,000 Southtrust Corp. ................................................................ 1,569,500
30,000 T. Rowe Price Assoc., Inc. ...................................................... 1,066,875
-------------
17,772,774
-------------
CHEMICALS -- 2.1%
80,000 Cabot Corp. ..................................................................... 2,245,000
35,000 Monsanto Co. .................................................................... 1,421,875
-------------
3,666,875
-------------
COMPUTER SERVICES -- 1.4%
49,000 Cadence Design Systems, Inc. (b) ................................................ 1,047,375
15,000 Fiserv, Inc. (b) ................................................................ 697,500
20,000 Sungard Data Systems, Inc. (b) .................................................. 675,000
-------------
2,419,875
-------------
COMPUTER SOFTWARE -- 5.8%
47,000 America Online, Inc. (b) ........................................................ 5,971,938
46,000 Compuware Corp. (b) ............................................................. 2,492,625
10,000 Electronic Arts, Inc. (b) ....................................................... 411,250
32,000 Network Assoc., Inc. (b) ........................................................ 1,360,000
-------------
10,235,813
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
CENTURA FUNDS, INC.
MID CAP EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- (CONTINUED)
OCTOBER 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- --------------------------------------------------------------------------------- -------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
CONSUMER GOODS AND SERVICES -- 4.7%
158,400 Dial Corp. ...................................................................... $ 4,365,900
34,000 Harley-Davidson, Inc. ........................................................... 1,317,500
50,000 Leggett & Platt, Inc. ........................................................... 1,168,750
16,000 Quintiles Transnational Corp. (b) ............................................... 724,000
18,000 Robert Half International, Inc. (b) ............................................. 722,250
-------------
8,298,400
-------------
DIVERSIFIED OPERATIONS -- 4.6%
30,000 Danaher Corp. ................................................................... 1,198,125
50,000 General Electric Co. ............................................................ 4,375,000
13,000 Sundstrand Corp. ................................................................ 610,188
50,000 Varian Associates, Inc. ......................................................... 1,956,250
-------------
8,139,563
-------------
ELECTRONIC COMPONENTS/INSTRUMENTS -- 4.5%
20,000 Altera Corporation (b) .......................................................... 832,500
24,000 American Power Conversion (b) ................................................... 1,018,500
17,000 Linear Technology Corp. ......................................................... 1,013,625
26,000 Maxim Integrated Products, Inc. (b) ............................................. 927,875
16,000 Molex, Inc. ..................................................................... 571,000
46,000 SCI Systems, Inc. (b) ........................................................... 1,817,000
30,000 Solectron Corp. (b) ............................................................. 1,717,500
-------------
7,898,000
-------------
ENERGY -- 9.4%
30,000 Amoco Corp. ..................................................................... 1,683,749
20,000 Diamond Offshore Drilling, Inc. ................................................. 613,750
29,000 El Paso Energy Corp. ............................................................ 1,027,688
100,000 Halliburton Co. ................................................................. 3,593,749
30,000 K N Energy, Inc. ................................................................ 1,490,625
33,000 Keyspan Energy Corp. ............................................................ 985,875
13,000 Murphy Oil Corp. ................................................................ 537,063
17,000 Repsol SA, ADR .................................................................. 850,000
27,000 Seagull Energy Corp. (b) ........................................................ 322,313
57,000 Teco Energy, Inc. ............................................................... 1,574,625
75,000 Tosco Corp. ..................................................................... 2,104,687
28,000 Transocean Offshore, Inc. ....................................................... 1,034,250
28,000 YPF SA, ADR ..................................................................... 810,250
-------------
16,628,624
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
CENTURA FUNDS, INC.
MID CAP EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- (CONTINUED)
OCTOBER 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- --------------------------------------------------------------------------------- -------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
FOOD AND BEVERAGES -- 5.1%
40,000 Albertson's, Inc. ............................................................... $ 2,222,500
14,000 Interstate Bakeries Corp. ....................................................... 350,875
100,000 Tyson Foods, Inc. ............................................................... 2,300,000
190,000 Whitman Corp. ................................................................... 4,073,125
-------------
8,946,500
-------------
HEALTH CARE -- 15.2%
99,200 Allegiance Corp. ................................................................ 3,689,000
11,000 Bergen Brunswig Corp., Class A .................................................. 536,938
17,000 Biogen, Inc. (b) ................................................................ 1,181,500
40,000 Bristol-Myers Squibb Co. ........................................................ 4,422,499
25,405 Cardinal Health, Inc. ........................................................... 2,402,360
67,500 Carter-Wallace, Inc. ............................................................ 1,198,125
20,000 Dentsply International, Inc. .................................................... 515,000
35,100 Genentech, Inc. (b) ............................................................. 2,514,038
50,000 Health Management Associates, Inc. (b) .......................................... 890,625
14,000 Hillenbrand Industry, Inc. ...................................................... 828,625
23,000 McKesson Corp. .................................................................. 1,771,000
39,000 Mylan Laboratories, Inc. ........................................................ 1,343,063
115,000 Trigon Healthcare, Inc. (b) ..................................................... 4,312,499
25,000 Watson Pharmaceutical, Inc. (b) ................................................. 1,390,625
-------------
26,995,897
-------------
INSURANCE -- 7.6%
60,000 AFLAC, Inc. ..................................................................... 2,287,500
12,000 Chicago Title Corp. ............................................................. 501,750
20,000 General Re Corp. ................................................................ 4,393,749
69,000 Jefferson-Pilot Corp. ........................................................... 4,191,750
15,000 Leucadia National Corp. ......................................................... 459,375
17,000 Mercury General Corp. ........................................................... 722,500
19,000 Reliastar Financial Corp. ....................................................... 832,438
-------------
13,389,062
-------------
MEDIA -- 2.0%
51,400 Media General, Inc., Class A .................................................... 2,300,150
2,200 Washington Post Co. ............................................................. 1,168,200
-------------
3,468,350
-------------
OFFICE EQUIPMENT & SERVICES -- 0.8%
21,000 Lexmark International Group, Inc. (b) ........................................... 1,468,688
-------------
POLLUTION CONTROL -- 0.5%
37,000 Allied Waste Industries, Inc. (b) ............................................... 800,125
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
CENTURA FUNDS, INC.
MID CAP EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- (CONTINUED)
OCTOBER 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- --------------------------------------------------------------------------------- -------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
RETAIL -- 2.0%
12,000 Barnes & Noble, Inc. (b) ........................................................ $ 391,500
27,000 Bed Bath & Beyond, Inc. (b) ..................................................... 744,188
21,000 Best Buy Company, Inc. (b) ...................................................... 1,008,000
58,000 Office Depot, Inc. (b) .......................................................... 1,450,000
-------------
3,593,688
-------------
TELECOMMUNICATIONS -- 4.5%
25,000 ADC Telecommunications, Inc. (b) ................................................ 575,000
40,300 AT&T Corp. ...................................................................... 2,508,675
20,000 Century Telephone Enterprises, Inc. ............................................. 1,136,250
35,000 Cincinnati Bell, Inc. ........................................................... 907,813
50,000 Comsat Corp. .................................................................... 1,971,875
15,000 Qualcomm, Inc. (b) .............................................................. 834,375
-------------
7,933,988
-------------
TEXTILES & TOOLS -- 1.0%
22,000 Cintas Corp. .................................................................... 1,177,000
40,000 Unifi, Inc. ..................................................................... 675,000
-------------
1,852,000
-------------
TRANSPORTATION & SHIPPING -- 1.4%
55,000 Airborne Freight Corp. .......................................................... 1,289,063
30,000 Kansas City Southern Industries, Inc. ........................................... 1,158,750
-------------
2,447,813
-------------
UTILITIES -- 7.2%
29,200 CMS Energy Corp. ................................................................ 1,286,625
21,000 Florida Progress Corp. .......................................................... 880,688
49,000 Idacorp, Inc. ................................................................... 1,531,250
50,000 Interstate Energy Corp. ......................................................... 1,546,874
50,000 Kansas City Power And Light Co. ................................................. 1,440,625
24,000 New Century Energies, Inc. ...................................................... 1,159,500
17,000 Pinnacle West Capital ........................................................... 744,813
50,000 Potomac Electric Power Company .................................................. 1,309,375
25,000 Scana Corp. ..................................................................... 845,313
19,000 Washington Gas Light Co. ........................................................ 502,313
51,000 Wisconsin Energy Corp. .......................................................... 1,561,874
-------------
12,809,250
-------------
TOTAL COMMON STOCKS (COST $127,634,172) ......................................... 159,890,660
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
CENTURA FUNDS, INC.
MID CAP EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- (CONTINUED)
OCTOBER 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- --------------------------------------------------------------------------------- -------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
INVESTMENT COMPANIES -- 11.6%
2,500,000 Centura Money Market Fund ....................................................... $ 2,500,000
6,107,426 Goldman Sachs Financial Square Prime Money Market Fund .......................... 6,107,426
3,778,812 Provident Institutional Temporary Investment Fund ............................... 3,778,812
125,000 S&P MidCap 400 Depositary Receipt ............................................... 8,070,313
-------------
TOTAL INVESTMENT COMPANIES (COST $19,401,551) ................................... 20,456,551
-------------
TOTAL INVESTMENTS (COST $147,035,723) (a) -- 101.9% ............................. 180,347,211
LIABILITIES IN EXCESS OF OTHER ASSETS -- 1.9% ................................... (3,347,023)
-------------
TOTAL NET ASSETS -- 100.0% ...................................................... $ 177,000,188
-------------
-------------
</TABLE>
- -------------
Percentages indicated are based on net assets of $177,000,188.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................. $ 35,209,609
Unrealized depreciation............................................. (1,898,121)
-------------
Net unrealized appreciation......................................... $ 33,311,488
-------------
-------------
</TABLE>
(b) Represents non-income producing security.
ADR -- American Depositary Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
CENTURA FUNDS, INC.
LARGE CAP EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
OCTOBER 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ---------------------------------------------------------------------------------- ------------
<C> <S> <C>
COMMON STOCKS -- 91.3%
AEROSPACE/DEFENSE -- 1.9%
10,000 AlliedSignal, Inc. ............................................................... $ 389,375
20,000 Boeing Co. ....................................................................... 750,000
8,000 Raytheon Co. ..................................................................... 464,500
------------
1,603,875
------------
AIRLINES -- 0.5%
6,000 AMR Corp. (b) .................................................................... 402,000
------------
AUTOMOBILES & TRUCKS -- 0.9%
12,000 General Motors Corp. ............................................................. 756,750
------------
BANKING & FINANCIAL SERVICES -- 11.7%
8,000 American Express Co. ............................................................. 707,000
11,000 Banc One Corp. ................................................................... 537,625
23,000 Bank of America Corp. ............................................................ 1,321,062
10,000 BankBoston Corp. ................................................................. 368,125
15,000 Chase Manhattan Corp. ............................................................ 852,188
23,000 Citigroup, Inc. .................................................................. 1,082,437
12,000 Fannie Mae ....................................................................... 849,750
6,000 Freddie Mac ...................................................................... 345,000
9,000 Household International, Inc. .................................................... 329,063
10,000 Huntington Bancshares, Inc. ...................................................... 287,500
15,000 Mellon Bank Corp. ................................................................ 901,875
5,000 National City Corp. .............................................................. 321,563
10,000 State Street Corp. ............................................................... 623,750
15,000 SunAmerica, Inc. ................................................................. 1,057,499
5,000 Wachovia Corp. ................................................................... 454,375
------------
10,038,812
------------
CHEMICALS -- 1.5%
18,000 E.I. du Pont de Nemours & Co. .................................................... 1,035,000
7,000 Monsanto Co. ..................................................................... 284,375
------------
1,319,375
------------
COMPUTER EQUIPMENT -- 3.7%
19,000 Cisco Systems, Inc. (b) .......................................................... 1,197,000
10,000 Dell Computer Corp. (b) .......................................................... 656,250
8,000 EMC Corp. (b) .................................................................... 515,000
7,000 Hewlett-Packard Co. .............................................................. 421,313
7,000 Sun Microsystems, Inc. (b) ....................................................... 407,750
------------
3,197,313
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
CENTURA FUNDS, INC.
LARGE CAP EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- (CONTINUED)
OCTOBER 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ---------------------------------------------------------------------------------- ------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
COMPUTER SOFTWARE -- 4.1%
8,000 Computer Associates International, Inc. .......................................... $ 315,000
27,000 Microsoft Corp. (b) .............................................................. 2,858,625
13,000 Oracle Corp. (b) ................................................................. 384,313
------------
3,557,938
------------
CONSUMER GOODS AND SERVICES -- 9.5%
5,000 Clorox Co. ....................................................................... 546,250
8,000 Colgate-Palmolive Co. ............................................................ 707,000
10,000 Dow Jones & Co., Inc. ............................................................ 458,125
12,000 Fort James Corp. ................................................................. 483,750
13,000 Gillette Co. ..................................................................... 584,188
6,000 Kimberly-Clark Corp. ............................................................. 289,500
15,000 Mattel, Inc. ..................................................................... 538,125
22,500 Philip Morris Companies, Inc. .................................................... 1,150,312
15,000 Procter & Gamble Co. ............................................................. 1,333,124
22,000 Ralston-Purina Group ............................................................. 734,250
20,000 Sherwin-Williams Co. ............................................................. 503,750
11,000 Unilever N.V. .................................................................... 827,750
------------
8,156,124
------------
DIVERSIFIED OPERATIONS -- 4.3%
33,000 General Electric Co. ............................................................. 2,887,500
11,000 ITT Industries, Inc. ............................................................. 393,250
7,000 Tyco International Ltd. .......................................................... 433,563
------------
3,714,313
------------
ELECTRONIC COMPONENTS/INSTRUMENTS -- 3.6%
10,000 Applied Materials, Inc. (b) ...................................................... 346,875
23,000 Compaq Computer Corp. ............................................................ 727,375
5,000 Honeywell, Inc. .................................................................. 399,375
18,000 Intel Corp. ...................................................................... 1,605,375
------------
3,079,000
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
CENTURA FUNDS, INC.
LARGE CAP EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- (CONTINUED)
OCTOBER 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ---------------------------------------------------------------------------------- ------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
ENERGY -- 7.3%
17,000 Amoco Corp. ...................................................................... $ 954,125
5,000 Atlantic Richfield Co. ........................................................... 344,375
5,000 Duke Energy Corp. ................................................................ 323,438
7,000 Enron Corp. ...................................................................... 369,250
25,000 Exxon Corp. ...................................................................... 1,781,249
8,000 Halliburton Co. .................................................................. 287,500
6,000 Mobil Corp. ...................................................................... 454,125
21,000 Royal Dutch Petroleum Co. ........................................................ 1,034,250
6,000 Schlumberger Ltd. ................................................................ 315,000
11,000 USX-Marathon Group ............................................................... 359,563
------------
6,222,875
------------
FOOD AND BEVERAGES -- 5.0%
12,000 Anheuser Busch Co., Inc. ......................................................... 713,250
11,000 Bestfoods ........................................................................ 599,500
10,000 Campbell Soup Co. ................................................................ 533,125
24,000 Coca Cola Co. .................................................................... 1,623,000
23,000 PepsiCo, Inc. .................................................................... 776,250
------------
4,245,125
------------
FUNERAL SERVICES -- 0.6%
15,000 Service Corp. International ...................................................... 534,375
------------
HEALTH CARE -- 13.3%
32,000 Abbott Laboratories .............................................................. 1,502,000
17,000 American Home Products Corp. ..................................................... 828,750
13,000 Bausch & Lomb, Inc. .............................................................. 541,938
11,000 Bristol-Myers Squibb Co. ......................................................... 1,216,188
10,000 Eli Lilly & Co. .................................................................. 809,375
13,000 Johnson & Johnson ................................................................ 1,059,500
7,000 Medtronic, Inc. .................................................................. 455,000
12,000 Merck & Co., Inc. ................................................................ 1,622,999
14,000 Pfizer, Inc. ..................................................................... 1,502,374
9,000 Schering-Plough Corp. ............................................................ 925,875
12,000 Warner-Lambert Co. ............................................................... 940,500
------------
11,404,499
------------
INSURANCE -- 2.9%
12,000 Conseco, Inc. .................................................................... 416,250
4,000 General Re Corp. ................................................................. 878,750
20,000 Jefferson-Pilot Corp. ............................................................ 1,215,000
------------
2,510,000
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
CENTURA FUNDS, INC.
LARGE CAP EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- (CONTINUED)
OCTOBER 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ---------------------------------------------------------------------------------- ------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
MACHINERY & EQUIPMENT -- 0.5%
10,000 Caterpillar, Inc. ................................................................ $ 450,000
------------
MEDIA -- 1.4%
17,000 The Walt Disney Co. .............................................................. 457,938
8,000 Time Warner, Inc. ................................................................ 742,500
------------
1,200,438
------------
METALS -- 0.5%
5,000 Aluminum Company of America ...................................................... 396,250
------------
PHOTOGRAPHY -- 0.4%
4,000 Eastman Kodak Co. ................................................................ 310,000
------------
POLLUTION CONTROL -- 0.6%
11,700 Waste Management, Inc. ........................................................... 527,963
------------
RETAIL -- 3.8%
10,000 Dayton Hudson Corp. .............................................................. 423,750
16,000 Home Depot, Inc. ................................................................. 696,000
6,000 McDonald's Corp. ................................................................. 401,250
22,000 Wal-Mart Stores, Inc. ............................................................ 1,518,000
5,000 Walgreen Co. ..................................................................... 243,438
------------
3,282,438
------------
TECHNOLOGY -- 2.1%
12,000 International Business Machines Corp. ............................................ 1,781,250
------------
TELECOMMUNICATIONS -- 9.4%
6,000 Airtouch Communications, Inc. (b) ................................................ 336,000
10,000 Ameritech Corp. .................................................................. 539,375
17,000 AT&T Corp. ....................................................................... 1,058,250
15,000 Bell Atlantic Corp. .............................................................. 796,875
8,000 BellSouth Corp. .................................................................. 638,500
15,000 Lucent Technologies, Inc. ........................................................ 1,202,812
19,151 MCI Worldcom, Inc. (b) ........................................................... 1,058,093
20,000 SBC Communications, Inc. ......................................................... 926,250
5,000 Sprint Corp. ..................................................................... 383,750
20,000 Tellabs, Inc. (b) ................................................................ 1,100,000
------------
8,039,905
------------
TRANSPORTATION & SHIPPING -- 0.4%
12,000 Burlington Northern Santa Fe Corp. ............................................... 370,500
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
CENTURA FUNDS, INC.
LARGE CAP EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- (CONTINUED)
OCTOBER 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ---------------------------------------------------------------------------------- ------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
UTILITIES -- 1.4%
11,000 Baltimore Gas and Electric Co. ................................................... $ 345,125
15,000 Southern Co. ..................................................................... 422,812
15,000 Williams Cos., Inc. .............................................................. 411,563
------------
1,179,500
------------
TOTAL COMMON STOCKS (COST $64,559,346) ........................................... 78,280,618
------------
INVESTMENT COMPANIES -- 7.5%
1,500,000 Centura Money Market Fund ........................................................ 1,500,000
1,552,793 Goldman Sachs Financial Square Prime Money Market Fund ........................... 1,552,793
378,344 Provident Institutional Temporary Investment Fund ................................ 378,344
27,000 S&P 500 Depositary Receipt ....................................................... 2,971,688
------------
TOTAL INVESTMENT COMPANIES (COST $6,269,601) ..................................... 6,402,825
------------
TOTAL INVESTMENTS (COST $70,828,947) (a) -- 98.8% ................................ 84,683,443
OTHER ASSETS IN EXCESS OF LIABILITIES -- 1.2% .................................... 1,063,007
------------
TOTAL NET ASSETS -- 100.0% ....................................................... $ 85,746,450
------------
------------
</TABLE>
- -------------
Percentages indicated are based on net assets of $85,746,450.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................. $ 14,533,350
Unrealized depreciation............................................. (678,854)
-------------
Net unrealized appreciation......................................... $ 13,854,496
-------------
-------------
</TABLE>
(b) Represents non-income producing security.
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
CENTURA FUNDS, INC.
SOUTHEAST EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
OCTOBER 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ---------------------------------------------------------------------------------- ------------
<C> <S> <C>
COMMON STOCKS -- 92.3%
AEROSPACE/DEFENSE -- 5.4%
14,000 ASA Holdings, Inc. ............................................................... $ 502,250
35,100 Heico Corp. ...................................................................... 868,725
29,500 Nichols Research Corp. (b) ....................................................... 601,063
------------
1,972,038
------------
BANKING & FINANCIAL SERVICES -- 13.2%
35,000 Allied Capital Corp. ............................................................. 656,250
25,000 Carolina First Corp. ............................................................. 576,563
18,800 CCB Financial Corp. .............................................................. 989,349
45,000 Cenit Bancorp, Inc. .............................................................. 877,500
15,000 Choicepoint, Inc. (b) ............................................................ 708,750
30,000 First Liberty Financial Corp. .................................................... 596,250
50,000 Florida Banks, Inc. (b) .......................................................... 393,750
------------
4,798,412
------------
BUILDING & CONSTRUCTION -- 5.1%
25,000 Coachmen Industries, Inc. ........................................................ 578,125
60,000 Westower Corp. (b) ............................................................... 1,275,000
------------
1,853,125
------------
BUSINESS EQUIPMENT & SERVICES -- 1.4%
30,000 Rollins, Inc. .................................................................... 517,500
------------
COMMERCIAL SERVICES -- 3.9%
46,000 Ace Cash Express, Inc. (b) ....................................................... 724,500
65,000 Aviall, Inc. (b) ................................................................. 702,813
------------
1,427,313
------------
COMPUTER SOFTWARE -- 1.4%
72,500 Broadway & Seymour, Inc. (b) 253,750
24,000 Datastream Systems, Inc. (b) ..................................................... 241,500
------------
495,250
------------
CONSUMER GOODS AND SERVICES -- 3.7%
45,000 Cash America International, Inc. ................................................. 562,500
60,000 Home Choice Holdings, Inc. (b) ................................................... 783,750
------------
1,346,250
------------
DISTRIBUTION/WHOLESALE -- 2.8%
70,000 Fresh America Corp. (b) .......................................................... 1,015,000
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
CENTURA FUNDS, INC.
SOUTHEAST EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- (CONTINUED)
OCTOBER 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ---------------------------------------------------------------------------------- ------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
ELECTRONIC COMPONENTS/INSTRUMENTS -- 13.4%
25,000 Artesyn Technologies, Inc. (b) ................................................... $ 360,938
20,000 AVX Corp. ........................................................................ 355,000
41,400 Benchmark Electronics, Inc. (b) .................................................. 975,487
30,700 C&D Technologies, Inc. ........................................................... 748,312
30,000 General Cable Corp. .............................................................. 592,500
10,000 Jabil Circuit, Inc. (b) .......................................................... 463,125
30,000 Photronics, Inc. (b) ............................................................. 654,375
31,500 World Access, Inc. (b) ........................................................... 673,312
------------
4,823,049
------------
ENERGY -- 4.2%
64,000 Dailey Petroleum Services (b) .................................................... 66,000
51,000 Global Industries Ltd. (b) ....................................................... 490,875
50,000 Midcoast Energy Resources ........................................................ 950,000
------------
1,506,875
------------
ENGINEERING -- 0.9%
25,000 Stolt Comex Seaway, SA (b) ....................................................... 318,750
------------
FOOD AND BEVERAGES -- 2.7%
34,000 Richfood Holdings, Inc. .......................................................... 603,500
20,000 Smithfield Foods, Inc. (b) ....................................................... 392,500
------------
996,000
------------
FOREST PRODUCTS -- 2.7%
27,000 Buckeye Technologies, Inc. (b) ................................................... 540,000
18,000 Deltic Timber Corp. .............................................................. 438,750
------------
978,750
------------
HEALTH CARE -- 9.0%
65,000 Coventry Health Care, Inc. (b) ................................................... 629,688
30,000 Maxxim Medical, Inc. (b) ......................................................... 757,500
35,000 Pharmaceutical Product Development, Inc. (b) ..................................... 944,999
25,000 PSS World Medical, Inc. (b) ...................................................... 553,125
10,000 Trigon Healthcare, Inc. (b) ...................................................... 375,000
------------
3,260,312
------------
INSURANCE -- 4.7%
30,000 American Heritage Life Investment Corp. .......................................... 624,375
37,500 FPIC Insurance Group, Inc. (b) ................................................... 1,092,188
------------
1,716,563
------------
MEDIA -- 5.0%
18,000 Media General, Inc., Class A ..................................................... 805,500
40,000 Nelson (Thomas), Inc. ............................................................ 512,500
60,000 Paxson Communications Corp. (b) .................................................. 502,500
------------
1,820,500
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
CENTURA FUNDS, INC.
SOUTHEAST EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- (CONTINUED)
OCTOBER 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ---------------------------------------------------------------------------------- ------------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
METALS -- 0.7%
35,000 Commonwealth Industries, Inc. .................................................... $ 264,688
------------
OFFICE EQUIPMENT & SERVICES -- 1.7%
49,000 Global Imaging Systems, Inc. (b) ................................................. 618,625
------------
POLLUTION CONTROL -- 0.6%
80,000 Trion, Inc. ...................................................................... 230,000
------------
RESEARCH & DEVELOPMENT -- 1.3%
30,000 Applied Analytical Industries, Inc. (b) .......................................... 465,000
------------
RETAIL -- 5.7%
45,000 Ingles Markets, Inc., Class A .................................................... 562,500
65,000 Pier 1 Imports, Inc. ............................................................. 601,250
44,600 Tropical Sportswear International (b) ............................................ 892,000
------------
2,055,750
------------
UTILITIES -- 1.4%
15,000 Piedmont Natural Gas Co., Inc. ................................................... 521,250
------------
WIRE & CABLE PRODUCTS -- 1.4%
95,000 Insteel Industries, Inc. ......................................................... 492,813
------------
TOTAL COMMON STOCKS (COST $33,303,488) ........................................... 33,493,813
------------
INVESTMENT COMPANIES -- 5.9%
1,500,000 Centura Money Market Fund ........................................................ 1,500,000
322,668 Goldman Sachs Financial Square Prime Money Market Fund ........................... 322,668
322,668 Provident Institutional Temporary Investment Fund ................................ 322,668
------------
TOTAL INVESTMENT COMPANIES (COST $2,145,336) ..................................... 2,145,336
------------
TOTAL INVESTMENTS (COST $35,448,824) (A) -- 98.2% ................................ 35,639,149
OTHER ASSETS IN EXCESS OF LIABILITIES -- 1.8% .................................... 656,166
------------
TOTAL NET ASSETS -- 100.0% ....................................................... $ 36,295,315
------------
------------
</TABLE>
- -------------
Percentages indicated are based on net assets of $36,295,315.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................. $ 4,718,847
Unrealized depreciation............................................. (4,528,522)
-------------
Net unrealized appreciation......................................... $ 190,325
-------------
-------------
</TABLE>
(b) Represents non-income producing security.
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
CENTURA FUNDS, INC.
FEDERAL SECURITIES INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
OCTOBER 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------------------------------------------------------- -------------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS -- 13.5%
U.S. TREASURY NOTES -- 13.5%
$ 4,000,000 5.50%, 3/31/03 ................................................................. $ 4,190,760
8,000,000 6.13%, 8/15/07 ................................................................. 8,836,320
4,000,000 5.63%, 5/15/08 ................................................................. 4,310,320
-------------
TOTAL U.S. GOVERNMENT OBLIGATIONS (COST $16,591,316) ........................... 17,337,400
-------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 81.1%
FEDERAL FARM CREDIT BANK -- 1.6%
2,000,000 5.84%, 11/21/03 ................................................................ 2,082,260
-------------
FEDERAL HOME LOAN BANK -- 17.3%
5,000,000 6.24%, 6/23/00 ................................................................. 5,123,100
4,500,000 5.62%, 1/12/01 ................................................................. 4,588,785
5,000,000 6.09%, 12/23/02 ................................................................ 5,238,350
2,000,000 5.92%, 3/19/08 ................................................................. 2,088,340
5,000,000 5.98%, 6/18/08 ................................................................. 5,249,600
-------------
22,288,175
-------------
FEDERAL HOME LOAN MORTGAGE CORP. -- 10.6%
3,943,370 6.50%, 2/1/04, Pool #N97461 .................................................... 3,998,814
4,297,258 6.50%, 9/1/04, Pool #97771 ..................................................... 4,357,677
5,000,000 6.13%, 2/27/06 ................................................................. 5,267,200
-------------
13,623,691
-------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 51.6%
5,000,000 5.44%, 1/29/01 ................................................................. 5,081,700
5,000,000 6.18%, 3/15/01 ................................................................. 5,168,250
2,454,638 6.00%, 11/1/03, Pool #50948 .................................................... 2,484,535
1,548,549 6.00%, 1/1/04, Pool #50968 ..................................................... 1,565,475
4,335,876 6.50%, 7/1/04, Pool #250995 .................................................... 4,392,763
4,517,702 6.50%, 10/1/04, Pool #251243 ................................................... 4,576,974
4,760,956 6.00%, 11/1/04, Pool #251413 ................................................... 4,795,139
1,885,000 5.50%, 11/1/05, Pool #252243 ................................................... 1,877,931
3,566,887 6.50%, 11/1/07, Pool #251509 ................................................... 3,627,060
3,539,140 6.00%, 1/1/08, Pool #251627 .................................................... 3,547,988
8,638,392 6.00%, 2/1/08, Pool #251660 .................................................... 8,659,989
5,000,000 5.75%, 2/15/08 ................................................................. 5,188,850
1,226,762 5.50%, 3/1/08, Pool #395059 .................................................... 1,219,794
1,208,549 5.50%, 4/1/08, Pool #411900 .................................................... 1,201,684
1,217,551 6.00%, 4/1/08, Pool #251725 .................................................... 1,230,858
243,760 5.50%, 5/1/08, Pool #431606 .................................................... 242,568
948,544 6.00%, 6/1/08, Pool #251827 .................................................... 958,912
6,448,380 6.00%, 6/1/08, Pool #418487 .................................................... 6,487,457
4,208,610 6.00%, 8/1/08, Pool #251904 .................................................... 4,254,610
-------------
66,562,537
-------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $102,498,404) ................... 104,556,663
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
CENTURA FUNDS, INC.
FEDERAL SECURITIES INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- (CONTINUED)
OCTOBER 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SHARE OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------------------------------------------------------- -------------
<C> <S> <C>
INVESTMENT COMPANIES -- 6.4%
1,500,000 Centura Money Market Fund ...................................................... $ 1,500,000
4,114,053 Goldman Financial Square Treasury Short Term Money Market Fund ................. 4,114,053
2,675,187 Provident Institutional Temporary Investment Fund .............................. 2,675,187
-------------
TOTAL INVESTMENT COMPANIES (COST $8,289,240) ................................... 8,289,240
-------------
TOTAL INVESTMENTS (COST $127,378,960) (A) -- 101.0% ............................ 130,183,303
LIABILITIES IN EXCESS OF OTHER ASSETS -- (1.0)% ................................ (1,304,530)
-------------
TOTAL NET ASSETS -- 100.0% ..................................................... $ 128,878,773
-------------
-------------
</TABLE>
<TABLE>
<CAPTION>
NO. OF
CONTRACTS PREMIUMS
- --------- -----------
<C> <S> <C>
OPTIONS OUTSTANDING AT END OF PERIOD CONSIST OF:
5,000,000 U.S. Treasury Note, 5.25%, 105.13, 11/3/98 .......................................... $ 35,937
5,000,000 U.S. Treasury Note, 5.25%, 104.83, 11/17/98 ......................................... 39,453
-----------
Total written put options (premium received $75,390)................................. $ 75,390
-----------
-----------
</TABLE>
- -------------
Percentages indicated are based on net assets of $128,878,773.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................. $ 2,925,683
Unrealized depreciation............................................. (118,606)
-------------
Net unrealized appreciation......................................... $ 2,807,077
-------------
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE>
CENTURA FUNDS, INC.
NORTH CAROLINA TAX-FREE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
OCTOBER 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY
AMOUNT DESCRIPTION MARKET VALUE
- ----------- --------------------------------------------------------------------------------- ------------
<C> <S> <C>
NORTH CAROLINA MUNICIPAL OBLIGATIONS -- (97.7%)
$935,000 Cabarrus County GO, 5.30%, 2/1/08, Callable 2/1/07 @ 100.5, (MBIA Insured) ...... $ 1,018,486
900,000 Cabarrus County GO, 5.30%, 2/1/10, Callable 2/1/07 @ 101.5, (MBIA Insured) ...... 973,602
1,000,000 Carteret County GO, 5.40%, 5/1/09, Callable 5/1/06 @ 101.5, (MBIA Insured) ...... 1,086,650
1,000,000 Centennial Authority North Carolina Hotel Tax Revenue, Arena Project, 4.65%,
9/1/06, (FSA Insured) ......................................................... 1,043,650
620,000 Charlotte County Mecklenberg GO, 6.00%, 1/1/04, Callable 1/1/02 @ 102 ........... 670,369
1,000,000 Charlotte County Mecklenberg Hospital Authority GO, 4.90%, 1/15/10, Callable
1/15/07 @ 102 ................................................................. 1,035,450
500,000 Charlotte UTGO, Refunding, 5.10%, 6/1/09, Callable 6/1/05 @ 102 ................. 534,890
1,400,000 Cleveland County UTGO, Refunding, 5.10%, 6/1/07, Callable 6/1/03 @ 102, (FGIC
Insured) ...................................................................... 1,486,338
1,630,000 Concord North Carolina Utilities Systems RB, 6.00%, 12/1/10, Callable 12/1/02 @
102, Sinkable 12/1/06 @ 100, (MBIA Insured) ................................... 1,801,394
1,000,000 Craven County GO, 5.40%, 6/1/02, (MBIA Insured) ................................. 1,059,500
1,535,000 Cumberland County Civic Center Project, Series A, CP, 6.20%, 12/1/07, Callable
12/1/04 @ 102, (AMBAC Insured) ................................................ 1,751,096
500,000 Cumberland County, GO, 4.80%, 3/1/03, (FGIC Insured) ............................ 521,520
1,000,000 Dare County, Certificate Participation Series A, 4.50%, 5/1/04, (MBIA
Insured) ...................................................................... 1,031,210
880,000 Durham County GO, 5.75%, 2/1/07, Callable 2/1/02 @ 102 .......................... 948,878
500,000 Durham County Public Improvements, 4.60%, 3/1/04 ................................ 519,745
300,000 Educational Facilities Finance Agency, Duke University Project, Series B, 4.70%,
10/1/08, Callable 10/1/06 @ 102 ............................................... 314,664
1,280,000 Fayetteville Public Works Commission Revenue, Series A, 5.25%, 3/1/08, Callable
3/1/05 @ 102, (AMBAC Insured) ................................................. 1,375,539
1,000,000 Gaston County Public Facilities Project, CP, 4.75%, 12/1/05, (MBIA Insured) ..... 1,048,680
1,000,000 Gaston County UTGO, 5.70%, 3/1/05, Callable 3/1/04 @ 100.5, (MBIA Insured) ...... 1,089,220
600,000 Greensboro County, GO, 4.60%, 4/1/03 ............................................ 621,936
1,000,000 Iredell County, 4.75%, 2/1/12, Callable 2/1/07 @ 102 ............................ 1,021,180
1,000,000 Iredell County Memorial Hospital Revenue, 5.10%, 10/1/11, Callable 10/1/07 @ 101,
(AMBAC Insured) ............................................................... 1,051,500
1,000,000 Lee County GO, 5.00%, 4/1/06, (MBIA Insured) .................................... 1,065,930
1,000,000 Mecklenburg County UTGO, Series B, 4.80%, 3/1/06 ................................ 1,055,910
500,000 North Carolina Housing Financial Agency, Series A1, Refunding, 4.65%, 1/1/04 .... 504,450
500,000 North Carolina Housing Financial Agency, Series A1, Refunding, 4.75%, 1/1/05 .... 505,700
1,500,000 North Carolina Municipal Power Agency #1, Catawba Electric Revenue, Refunding,
5.25%, 1/1/09, (MBIA Insured) ................................................. 1,616,939
500,000 North Carolina State, GO, 5.00%, 6/1/05 ......................................... 533,605
1,000,000 Onslow County UTGO, 5.60%, 3/1/05 ............................................... 1,093,690
1,050,000 Orange County UTGO, Refunding, 5.10%, 6/1/03 .................................... 1,110,449
500,000 Piedmont Triad Airport Authority Revenue, Refunding, 6.75%, 7/1/10, Callable
7/1/00 @ 102, Sinkable 7/1/06 @100, (MBIA Insured) ............................ 534,010
1,000,000 Pitt County Memorial Hospital Revenue, 5.38%, 12/1/10, Callable 12/1/05 @ 102 ... 1,091,950
625,000 Pitt County Public Facilities, CP, Series A, 5.35%, 4/1/07, (MBIA Insured) ...... 680,363
1,250,000 Raleigh UTGO, Refunding, 6.40%, 3/1/02 .......................................... 1,334,638
1,000,000 Union City, Refunding, GO, 4.80%, 5/1/05, (MBIA Insured) ........................ 1,050,380
870,000 University of North Carolina, Dining System Revenue, 5.30%, 5/15/12, Callable
5/15/07 @ 102 ................................................................. 926,768
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE>
CENTURA FUNDS, INC.
NORTH CAROLINA TAX-FREE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- (CONTINUED)
OCTOBER 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------------------------------------------------------------- ------------
<C> <S> <C>
NORTH CAROLINA MUNICIPAL OBLIGATIONS -- (CONTINUED)
$ 1,460,000 University of North Carolina, Utility System RB, Refunding, 5.00%, 8/1/09,
Callable 8/1/02 @ 102 ......................................................... $ 1,519,422
1,000,000 Wake County, 4.50%, 3/1/10, Callable 3/1/06 @ 102 ............................... 1,020,900
500,000 Wake County Public Improvement, 4.50%, 3/1/03 ................................... 516,375
500,000 Wake Forest University Education Facility, 5.00%, 11/1/12, Callable 11/1/07 @
102, Sinkable 11/1/09 @ 100 ................................................... 519,525
1,275,000 Wilkes County UTGO, Refunding, 5.20%, 6/1/05, Callable 6/1/03 @ 101 ............. 1,353,247
1,000,000 Winston Salem CP, Series A, 5.30%, 6/1/09, Callable 6/1/06 @ 102, Sinkable 6/1/08
@ 100 ......................................................................... 1,082,320
500,000 Winston Salem State University Revenue, Refunding, 4.75%, 1/1/10, Callable 1/1/09
@ 101, (MBIA Insured) ......................................................... 512,840
500,000 Winston Salem State University Revenue, Refunding, 4.85%, 1/1/11, Callable 1/1/09
@ 101, (MBIA Insured) ......................................................... 512,770
1,000,000 Winston Salem Water & Sewer System RB, 6.30%, 6/1/06 ............................ 1,104,961
------------
TOTAL NORTH CAROLINA MUNICIPAL OBLIGATIONS (COST $40,971,139) ................... 43,252,639
------------
INVESTMENT COMPANIES -- (1.2%)
274,500 Institutional Liquid Assets Tax-Free Money Market Fund .......................... 274,500
274,500 PNC Investment Money Market Fund ................................................ 274,500
------------
TOTAL INVESTMENT COMPANIES (COST $549,001) ...................................... 549,000
------------
TOTAL INVESTMENTS (COST $41,520,140) (A) -- 98.9% ............................... 43,801,639
OTHER ASSETS IN EXCESS OF LIABILITIES -- 1.1% ................................... 509,368
------------
TOTAL NET ASSETS -- 100.0% ...................................................... $ 44,311,007
------------
------------
</TABLE>
- -------------
Percentages indicated are based on net assets of $44,311,007.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.............................................. $ 2,281,499
Unrealized depreciation.............................................. --
-------------
Net unrealized appreciation.......................................... $ 2,281,499
-------------
-------------
</TABLE>
(b) Represents non-income producing security.
AMBAC -- American Municipal Bond Assurance Corp.
CP -- Certificate of Participation
FGIC -- Financial Guaranty Insurance Corp.
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
RB -- Revenue Bond
UTGO -- Unlimited Tax General Obligation
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE>
CENTURA FUNDS, INC.
MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
OCTOBER 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------------------------------------------------------------- ------------
<C> <S> <C>
COMMERCIAL PAPER -- (27.5%)
BANKING & FINANCIAL SERVICES -- (20.6%)
2,000,000 American Express Co., 5.40%, 3/5/99 ............................................. $ 1,962,800
2,000,000 Bank of America Corp., 5.49%, 1/6/99 ............................................ 1,979,870
2,000,000 Ford Motor Credit Corp., 5.40%, 12/1/98 ......................................... 1,991,000
2,000,000 International Business Machines Credit Corp., 5.05%, 12/7/98 .................... 1,989,900
2,000,000 Merrill Lynch & Co., Inc., 5.40%, 11/16/98 ...................................... 1,995,500
2,000,000 Salomon Smith Barney Holdings, Inc., 5.49%, 11/16/98 ............................ 1,995,425
------------
11,914,495
------------
ELECTRONIC COMPONENTS/INSTRUMENTS -- (3.5%)
2,000,000 General Electric Co., 5.51%, 11/2/98 ............................................ 1,999,694
------------
FOOD AND BEVERAGES -- (3.4%)
2,000,000 Coca Cola Co., 5.24%, 12/15/98 .................................................. 1,987,191
------------
TOTAL COMMERCIAL PAPER (COST $15,901,380) ....................................... 15,901,380
------------
U.S. GOVERNMENT AGENCY MORTGAGES -- (70.3%)
FEDERAL AGRICULTURAL MORTGAGE CORPORATION -- (6.9%)
2,000,000 5.42%, 11/4/98 .................................................................. 1,999,097
2,000,000 5.08%, 12/11/98 ................................................................. 1,988,711
------------
3,987,808
------------
FEDERAL FARM CREDIT BANK -- (3.5%)
2,000,000 5.23%, 11/5/98 .................................................................. 1,998,838
------------
FEDERAL HOME LOAN BANK -- (10.3%)
2,000,000 5.25%, 1/5/99 ................................................................... 1,981,042
2,000,000 4.85%, 3/9/99 ................................................................... 1,965,511
2,000,000 5.60%, 7/30/99 .................................................................. 2,011,552
------------
5,958,105
------------
FEDERAL HOME LOAN MORTGAGE CORP. -- (25.6%)
5,000,000 5.42%, 11/2/98 .................................................................. 4,999,246
2,000,000 4.94%, 2/2/99 ................................................................... 1,974,477
2,000,000 5.16%, 2/5/99 ................................................................... 1,972,480
2,000,000 5.04%, 12/28/98 ................................................................. 1,984,040
2,000,000 5.15%, 3/8/99 ................................................................... 1,963,664
2,000,000 5.41%, 11/17/98 ................................................................. 1,995,191
------------
14,889,098
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE>
CENTURA FUNDS, INC.
MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS -- (CONTINUED)
OCTOBER 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------------------------------------------------------------- ------------
<C> <S> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- (24.0%)
2,000,000 5.04%, 1/4/99 ................................................................... $ 1,982,080
2,000,000 5.00%, 3/18/99 .................................................................. 1,961,944
2,000,000 5.33%, 11/30/98 ................................................................. 1,991,413
2,000,000 5.26%, 12/21/98 ................................................................. 1,985,389
2,000,000 5.58%, 1/15/99 .................................................................. 2,000,000
2,000,000 5.50%, 2/12/99 .................................................................. 2,000,000
2,000,000 4.75%, 4/9/99 ................................................................... 1,958,042
------------
13,878,868
------------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGES (COST $40,712,717) ....................... 40,712,717
------------
INVESTMENT COMPANIES -- (2.2%)
1,271,246 Goldman Sachs Financial Square Prime Money Market Fund .......................... 1,271,246
------------
TOTAL INVESTMENT COMPANIES (COST $1,271,246) .................................... 1,271,246
------------
TOTAL INVESTMENTS (COST $57,885,343) (a) -- 100.0% .............................. 57,885,343
LIABILITIES IN EXCESS OF OTHER ASSETS -- 0.0% ................................... (28,070)
------------
TOTAL NET ASSETS -- 100.0% ...................................................... $ 57,857,273
------------
------------
</TABLE>
- -------------
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE>
CENTURA FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
NORTH
LARGE CAP SOUTHEAST FEDERAL CAROLINA MONEY
MID CAP EQUITY EQUITY SECURITIES TAX-FREE MARKET
EQUITY FUND FUND FUND INCOME FUND BOND FUND FUND (A)
----------- ---------- ---------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value
(cost $147,035,723, $70,828,947,
$35,448,824, $127,378,960,
$41,520,140, and $57,885,343
respectively)....................... $180,347,211 $84,683,443 $35,639,149 $130,183,303 $43,801,639 $57,885,343
Cash.................................. -- 306,704 142,826 -- -- 60,364
Dividends and interest receivable..... 197,881 90,739 25,078 1,246,553 663,221 156,468
Receivable for capital shares sold.... 955 -- 14,323 -- -- --
Receivable from investment securities
sold................................ 5,650,772 854,138 512,298 -- -- --
Unamortized organizational costs...... 3,822 -- 10,503 5,056 1,684 30,722
Prepaid expenses and other assets..... 17,900 2,341 180 11,310 6,240 7,653
----------- ---------- ---------- ----------- ---------- ----------
Total Assets...................... 186,218,541 85,937,365 36,344,357 131,446,222 44,472,784 58,140,550
----------- ---------- ---------- ----------- ---------- ----------
LIABILITIES:
Dividends payable..................... 3,896 19,876 -- 541,289 149,897 264,100
Payable to brokers for investments
purchased........................... 6,388,611 141,370 22,344 1,882,568 -- --
Payable to custodian.................. 2,583,237 -- -- 59,008 1,572 --
Put option contracts written, at value
-- premiums received $75,390........ -- -- -- 72,656 -- --
Payable for capital shares redeemed... 183,080 500 -- 3,000 -- --
Accrued expenses and other payables:
Investment advisory fees............ 13,349 6,472 2,745 4,268 1,214 129
Administration fees................. 2,861 1,387 588 2,134 534 64
Distribution fees................... 15,949 2,341 4,381 207 1,434 11
Other liabilities................... 27,370 18,969 18,984 2,319 7,126 18,973
----------- ---------- ---------- ----------- ---------- ----------
Total Liabilities................. 9,218,353 190,915 49,042 2,567,449 161,777 283,277
----------- ---------- ---------- ----------- ---------- ----------
NET ASSETS:
Shares of beneficial interest issued
and outstanding (par value $.001 per
share) 900,000,000 shares
authorized.......................... 11,779 7,048 2,972 12,347 4,182 57,857
Additional paid-in mcapital........... 125,215,586 64,465,788 33,167,181 123,503,726 41,819,136 57,799,416
Accumulated undistributed
(distributions in excess of) net
investment income................... 3,956 23,251 (42,997) -- 3,737 --
Accumulated undistributed net realized
gaims (losses) from investment
transactions........................ 18,457,379 7,395,867 2,977,834 2,555,623 202,453 --
Net unrealized appreciation
(depreciation) from investments..... 33,311,488 13,854,496 190,325 2,807,077 2,281,499 --
----------- ---------- ---------- ----------- ---------- ----------
Net Assets........................ $177,000,188 $85,746,450 $36,295,315 $128,878,773 $44,311,007 $57,857,273
----------- ---------- ---------- ----------- ---------- ----------
----------- ---------- ---------- ----------- ---------- ----------
Class A:
Net Assets.......................... $12,767,789 $1,602,426 $3,191,321 $ 519,699 $5,072,521 $ 11,458
Shares Outstanding.................. 849,253 131,533 261,168 49,803 478,708 11,458
Net Asset Value Per Share........... $15.03 $12.18 $12.22 $10.44 $10.60 $1.00
----------- ---------- ---------- ----------- ---------- ----------
----------- ---------- ---------- ----------- ---------- ----------
Maximum Sales Charge.................. 4.50% 4.50% 4.50% 2.75% 2.75% N/A
Maximum Offering Price Per Share
(100%/ (100% -- Maximum Sales
Charge) of net asset value adjusted
to the nearest cent) per share...... $15.74 $12.75 $12.80 $10.74 $10.90 $1.00
----------- ---------- ---------- ----------- ---------- ----------
----------- ---------- ---------- ----------- ---------- ----------
Class B:
Net Assets.......................... $17,089,998 $2,552,131 $4,953,155 $ 152,111 $ 588,434 N/A
Shares Outstanding.................. 1,157,856 210,514 409,457 14,584 55,516 N/A
Net Asset Value Per Share
(redemption value varies based on
time held)........................ $14.76 $12.12 $12.10 $10.43 $10.60 N/A
----------- ---------- ---------- ----------- ---------- ----------
----------- ---------- ---------- ----------- ---------- ----------
Class C:
Net Assets.......................... $147,142,401 $81,591,893 $28,150,839 $128,206,963 $38,650,052 $57,845,815
Shares Outstanding.................. 9,771,782 6,706,042 2,301,060 12,282,428 3,647,615 57,845,815
Net Asset Value Per Share........... $15.06 $12.17 $12.23 $10.44 $10.60 $1.00
----------- ---------- ---------- ----------- ---------- ----------
----------- ---------- ---------- ----------- ---------- ----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE>
CENTURA FUNDS, INC.
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED OCTOBER 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
NORTH
FEDERAL CAROLINA MONEY
MID CAP LARGE CAP SOUTHEAST SECURITIES TAX-FREE MARKET
EQUITY FUND EQUITY FUND EQUITY FUND INCOME FUND BOND FUND FUND(A)
------------ ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends......................... $ 1,430,275 $ 850,508 $ 217,805 $ 133,282 $ 15,417 $ 6,051
Interest.......................... 51,731 8,893 -- 3,684,886 1,038,091 1,157,421
------------ ----------- ----------- ----------- ----------- -----------
Total Income: 1,482,006 859,401 217,805 3,818,168 1,053,508 1,163,472
------------ ----------- ----------- ----------- ----------- -----------
EXPENSES:
Advisory fees..................... 677,727 243,473 127,495 198,710 78,080 63,421
Administration fees............... 145,227 52,173 27,320 99,355 33,463 31,710
Distribution fees -- Class A...... 33,055 3,862 7,775 1,332 12,245 25
Distribution fees -- Class B...... 87,000 11,596 24,146 685 2,697 --
Custodian fees.................... 24,194 8,693 4,738 16,560 5,579 5,285
Accounting fees................... 15,274 15,720 16,701 16,695 16,825 13,376
Directors' fees and expenses...... 7,302 1,769 3,069 2,937 1,317 2,088
Transfer agent fees............... 52,345 4,637 24,288 8,719 6,637 5,777
Other expenses.................... 31,378 11,767 29,157 345 16,256 27,900
------------ ----------- ----------- ----------- ----------- -----------
Total Expenses before voluntary
fee reductions: 1,073,502 353,690 264,689 345,338 173,099 149,582
Expenses voluntarily reduced or
reimbursed.................... (16,527) (90,461) (3,887) (837) (70,458) (99,439)
------------ ----------- ----------- ----------- ----------- -----------
Total Net Expenses: 1,056,975 263,229 260,802 344,501 102,641 50,143
------------ ----------- ----------- ----------- ----------- -----------
Net Investment Income: 425,031 596,172 (42,997) 3,473,667 950,867 1,113,329
------------ ----------- ----------- ----------- ----------- -----------
NET REALIZED/UNREALIZED GAINS
(LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from
investment transactions: 9,550,619 4,043,531 1,148 477,275 91,637 --
Net change in unrealized
appreciation (depreciation) from
investments..................... (25,684,682) (4,555,940) (7,650,361) 2,670,356 1,169,182 --
------------ ----------- ----------- ----------- ----------- -----------
Net Realized/Unrealized Gains
(Losses) from Investments: (16,134,063) (512,409) (7,649,213) 3,147,631 1,260,819 --
------------ ----------- ----------- ----------- ----------- -----------
Change in Net Assets Resulting from
Operations........................ $(15,709,032) $ 83,763 $(7,692,210) $ 6,621,298 $ 2,211,686 $ 1,113,329
------------ ----------- ----------- ----------- ----------- -----------
------------ ----------- ----------- ----------- ----------- -----------
</TABLE>
- -------------
(a) For the period from June 1, 1998 (commencement of operations) to October
31, 1998.
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE>
CENTURA FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MID CAP EQUITY FUND LARGE CAP EQUITY FUND
------------------------ -------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30,
1998 1998 1998 1998
------------ ---------- ------------ -----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income........... $ 425,031 $ 929,505 $ 596,172 $1,482,896
Net realized gains (losses) from
investment transactions....... 9,550,619 25,429,484 4,043,531 5,422,320
Net change in unrealized
appreciation (depreciation)
from investments.............. (25,684,682) 32,952,332 (4,555,940) 9,444,095
------------ ---------- ------------ -----------
Change in net assets resulting
from operations................. (15,709,032) 59,311,321 83,763 16,349,311
------------ ---------- ------------ -----------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment income.... (20,689) (34,856) (11,697) (17,787)
In excess of net investment
income...................... -- -- (549) (526)
From net realized gain from
investment transactions..... -- (2,494,669) -- (83,795)
DISTRIBUTIONS TO CLASS B
SHAREHOLDERS:
From net investment income.... (2,315) -- (7,639) (15,848)
In excess of net investment
income...................... -- (2,655) (3,963) (1,642)
From net realized gain from
investment transactions..... -- (3,086,772) -- (124,900)
DISTRIBUTIONS TO CLASS C
SHAREHOLDERS:
From net investment income.... (398,071) (876,414) (577,805) (1,418,361)
In excess of net investment
income...................... -- -- -- --
From net realized gain from
investment transactions..... -- (37,488,913) -- (5,725,838)
------------ ---------- ------------ -----------
Change in net assets from
shareholder distributions....... (421,075) (43,984,229) (601,653) (7,388,697)
------------ ---------- ------------ -----------
Change in net assets from share
transactions.................... (18,888,697) 31,216,606 17,538,900 6,514,129
------------ ---------- ------------ -----------
Change in net assets.............. (35,018,804) 46,543,698 17,021,010 15,474,743
NET ASSETS:
Beginning of year............... 212,018,992 165,475,294 68,725,440 53,250,697
------------ ---------- ------------ -----------
End of year (including
undistributed net investment
income of $3,956, $0, $23,251,
and $28,732, respectively) ... 1$77,000,188 $212,018,992 $85,746,450 6$8,725,440
------------ ---------- ------------ -----------
------------ ---------- ------------ -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE>
CENTURA FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
<TABLE>
<CAPTION>
FEDERAL SECURITIES
SOUTHEAST EQUITY FUND INCOME FUND
-------------------------- ------------------------
FOR THE
PERIOD
FOR THE SIX FROM MAY 2, FOR THE SIX FOR THE
MONTHS ENDED 1997(A) TO MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30,
1998 1998 1998 1998
------------ ------------ ------------ ----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income......... $ (42,997) $ 94,888 $3,473,667 $7,228,918
Net realized gains (losses)
from investment
transactions................ 1,148 4,803,926 477,275 2,499,631
Net change in unrealized
appreciation (depreciation)
from investments............ (7,650,361) 7,061,973 2,670,356 545,699
------------ ------------ ------------ ----------
Change in net assets resulting
from operations............... (7,692,210) 11,960,787 6,621,298 10,274,248
------------ ------------ ------------ ----------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment
income.................... -- (1,298) (13,312) (27,502)
In excess of net investment
income.................... -- (1,536) -- --
From net realized gain from
investment transactions... -- (103,629) -- --
DISTRIBUTIONS TO CLASS B
SHAREHOLDERS:
From net investment
income.................... -- -- (3,082) (7,553)
In excess of net investment
income.................... -- (1,083) -- --
From net realized gain from
investment transactions... -- (159,881) -- --
DISTRIBUTIONS TO CLASS C
SHAREHOLDERS:
From net investment
income.................... -- (102,073) (3,457,273) (7,193,863)
In excess of net investment
income.................... -- -- -- --
From net realized gain from
investment transactions... -- (1,557,628) -- --
------------ ------------ ------------ ----------
Change in net assets from
shareholder distributions..... -- (1,927,128) (3,473,667) (7,228,918)
------------ ------------ ------------ ----------
Change in net assets from share
transactions.................. 4,467,343 29,486,523 (5,998,040) 8,575,052
------------ ------------ ------------ ----------
Change in net assets............ (3,224,867) 39,520,182 (2,850,409) 11,620,382
NET ASSETS:
Beginning of year............. 39,520,182 -- 131,729,182 120,108,800
------------ ------------ ------------ ----------
End of year (including
undistributed net investment
income of $(42,997), $0, $0,
and $0, respectively)....... $36,295,315 $39,520,182 1$28,878,773 $131,729,182
------------ ------------ ------------ ----------
------------ ------------ ------------ ----------
</TABLE>
- ------------
(a) Commencement of operations
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE>
CENTURA FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
<TABLE>
<CAPTION>
NORTH CAROLINA MONEY MARKET
TAX-FREE BOND FUND FUND
------------------------- ------------
FOR THE
PERIOD
FOR THE SIX FOR THE FROM JUNE 1,
MONTHS ENDED YEAR ENDED 1998(A) TO
OCTOBER 31, APRIL 30, OCTOBER 31,
1998 1998 1998
------------ ----------- ------------
(UNAUDITED)
<S> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income....................... $ 950,867 $1,768,128 $1,113,329
Net realized gains (losses) from investment
transactions.............................. 91,637 235,790 --
Net change in unrealized appreciation
(depreciation) from investments........... 1,169,182 903,842 --
------------ ----------- ------------
Change in net assets resulting from
operations.................................. 2,211,686 2,907,760 1,113,329
------------ ----------- ------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income................ (99,008) (181,765) (147)
In excess of net investment income........ -- -- --
From net realized gain from investment
transactions............................ -- -- --
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income................ (9,541) (15,117) --
In excess of net investment income........ -- -- --
From net realized gain from investment
transactions............................ -- -- --
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income................ (842,318) (1,571,246) (1,113,182)
In excess of net investment income........ -- -- --
From net realized gain from investment
transactions............................ -- -- --
------------ ----------- ------------
Change in net assets from shareholder
distributions............................... (950,867) (1,768,128) (1,113,329)
------------ ----------- ------------
Change in net assets from share
transactions................................ 419,057 5,080,448 57,857,273
------------ ----------- ------------
Change in net assets.......................... 1,679,876 6,220,080 57,857,273
NET ASSETS:
Beginning of year........................... 42,631,131 36,411,051 --
------------ ----------- ------------
End of year (including undistributed net
investment income of $3,737, $3,737, and
$0, respectively)......................... $44,311,007 4$2,631,131 $57,857,273
------------ ----------- ------------
------------ ----------- ------------
</TABLE>
- ------------
(a) Commencement of operations
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1998
1. ORGANIZATION -- Centura Funds, Inc. (the "Company") is registered under
the Investment Company Act of 1940, as amended, as an open-end management
investment company, a Maryland corporation on March 1, 1994. At October 31, 1998
the Company consisted of six separate investment portfolios: Centura Mid Cap
Equity Fund (formerly Centura Equity Growth Fund), Centura Large Cap Equity Fund
(formerly Centura Equity Income Fund), Centura Southeast Equity Fund, Centura
Federal Securities Income Fund, Centura North Carolina Tax-Free Bond Fund and
Money Market Fund which commenced operations on June 1, 1998 (collectively, the
"Funds").
The Funds' investment objectives and general policies are as follows:
<TABLE>
<CAPTION>
FUND OBJECTIVE AND POLICIES
- -------------------------------------------- --------------------------------------------------------------
<S> <C>
Mid Cap Equity Fund Long-term capital appreciation. It invests in a diversified
portfolio comprised mainly of publicly traded common and
preferred stocks and securities convertible into or
exchangeable for common stock of mid-sized companies.
Large Cap Equity Fund To provide long-term capital appreciation. The fund invests
primarily in common stocks, convertible preferred stocks, and
convertible bonds, notes and debentures of companies with
market capitalization in excess of $1 billion.
Southeast Equity Fund Long-term capital appreciation. The fund invests primarily in
a diversified portfolio of common and preferred stocks and
securities convertible into common stock of companies that are
headquartered or have substantial operations in the
Southeastern region of the United States.
The Federal Securities Income Fund Seeks to provide relatively high current income consistent
with relative stability of principal and safety. The fund
invests primarily in securities issued by the U.S. Government,
its agencies and instrumentalities.
The North Carolina Tax-Free Bond Fund Seeks to provide relatively high current income that is free
of both regular Federal and North Carolina personal income
tax, together with relative safety of principal. It invests
primarily in a portfolio of high quality municipal securities
with a maximum maturity of 15 years and an average portfolio
maturity of 5 to 10 years.
Money Market Fund To provide investors with as high a level of current income as
is consistent with preservation of capital and liquidity. The
fund pursues this objective by investing in a broad range of
high quality, short-term, money market instruments that have
remaining maturities not exceeding 397 days.
</TABLE>
35
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 1998
The Funds, except Money Market Fund, offer three classes of shares known as
Class A, Class B and Class C shares. The Money Market Fund offers only Class A
and Class C shares. Class A shares are offered with a maximum front-end sales
charge of 4.50% for the Mid Cap Equity Fund, Large Cap Equity Fund, and
Southeast Equity Fund; 2.75% for the Federal Securities Income Fund and North
Carolina Tax-Free Bond Fund; and 0% for Money Market Fund. Class B shares are
offered at net asset value but are subject to a contingent deferred sales charge
("CDSC") consistent with Funds' prospectus. In addition, Class A share and B
shares pay ongoing distribution fees, with Class B shares paying those fees at a
higher rate. Class B shares will convert automatically to Class A shares on the
first business day of the month following the seventh anniversary of their
purchase date. Class C shares are offered to accounts managed by the Advisor's
Trust Department and to non-profit institutions who invest at least $100,000,
and there is no sales charge, CDSC or distribution fee imposed on this class.
2. SIGNIFICANT ACCOUNTING POLICIES -- The following is a summary of
significant accounting policies followed by the Funds in the preparation of
their financial statements. The policies are in conformity with generally
accepted accounting principles. The preparation of financial statements requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of income and expenses for the period. Actual results could differ from
those estimates.
a. SECURITY VALUATION Securities listed on an exchange are valued on the
basis of the last sale prior to the time the valuation is made. If there has
been no sale since the immediately previous valuation, then the current bid
price is used. Quotations are taken from the exchange where the security is
primarily traded. Over-the-counter securities are valued on the basis of the bid
price at the close of business on each business day. Securities for which market
quotations are not readily available are valued at fair value as determined in
good faith by or at the direction of the Board of Directors. Notwithstanding the
above, bonds and other fixed-income securities are valued by using market
quotations and may be valued on the basis of prices provided by a pricing
service approved by the Board of Directors. Short-term securities with remaining
maturities of 60 days or less are valued at amortized cost. Money Market Fund
reflects its securities at amortized cost, pursuant to federal rule.
b. INVESTMENT TRANSACTIONS Transactions are recorded on the trade date.
Identified cost of investments sold is used for both financial statement and
federal income tax purposes. Interest income, including the amortization of
discount or premium, is recorded as accrued. Dividends are recorded on the
ex-dividend date.
c. FEDERAL INCOME TAXES Each Fund's policy is to qualify as a "regulated
investment company" under Subchapter M of the Internal Revenue Code of 1986, as
amended. By so qualifying, the Funds will not be subject to federal income taxes
to the extent that they distribute all taxable and tax-exempt income for their
fiscal year. The Funds also intend to meet the distribution requirements to
avoid the payment of an excise tax.
d. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS The Mid Cap Equity Fund,
Large Cap Equity Fund, and Southeast Equity Fund declare and pay dividends of
substantially all of its net investment income monthly. The Federal Securities
Income Fund, North Carolina Tax-Free Bond Fund, and Money
36
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 1998
Market Fund declare dividends of substantially all of their net investment
income daily and pay those dividends monthly. Each Fund will distribute, at
least annually, substantially all net capital gains, if any, earned by such
Fund. Distributions to shareholders are recorded on the ex-dividend date. The
amount of dividends and distributions are determined in accordance with federal
income tax regulations, which may differ from generally accepted accounting
principles. These "book/tax" differences are either considered temporary or
permanent in nature. To the extent these differences are permanent in nature,
such amounts are reclassified within the capital accounts based on their federal
tax basis treatment; temporary differences do not require reclassification.
Dividends and distributions which exceed net investment income and net realized
capital gains for financial reporting purposes but not for tax purposes are
reported as dividends in excess of net investment income or distributions in
excess of net realized capital gains.
e. ORGANIZATION EXPENSES Costs incurred in connection with the organization
and initial registration of the Company, which have been allocated among the
Funds, have been deferred and are being amortized over a five year period,
beginning with each Fund's commencement of operations.
f. DETERMINATION OF NET ASSET VALUE AND ALLOCATION OF EXPENSES Expenses
directly attributable to a Fund are charged to that Fund; other expenses are
allocated proportionately among each Fund within the Company in relation to the
net assets of each Fund or on another reasonable basis. In calculating net asset
value per share of each class, investment income, realized and unrealized gains
and losses and expenses other than class specific expenses, are allocated daily
to each class of shares based upon the proportion of net assets of each class at
the beginning of each day. Class specific expenses, as determined under
applicable law and regulatory policy, are borne by the class incurring the
expense.
g. OPTION WRITING When a Fund writes an option, an amount equal to the
premium received by the Fund is recorded as a liability and is subsequently
adjusted to the current fair value of the option written. Premiums received from
writing options that expire unexercised are treated by a Fund on the expiration
date as realized gains from investments. The difference between the premium and
the amount paid on effecting a closing purchase transaction, including brokerage
commissions, is also treated as a realized gain, or if the premium is less than
the amount paid for the closing purchase transaction, as realized loss. If a
call option is exercised, the premium is added to the proceeds from the sale of
the underlying security or currency in determining whether a Fund has realized a
gain or loss. If a put option is exercised, the premium reduces the cost basis
of the securities purchased by a Fund. A Fund as writer of an option bears the
market risk of an unfavorable change in the price of the security underlying the
written option.
3. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES -- Centura Bank
("Advisor") serves as the Company's investment Advisor. Pursuant to the advisory
contracts, the Advisor manages the investments of the Funds and continuously
reviews, supervises and administers the Funds' investments. The Advisor is
responsible for placing orders for the purchase and sale of investment
securities directly with brokers and dealers selected at its discretion.
BISYS Fund Services Ohio, Inc. ("BISYS") serves as the Funds' administrator
("the Administrator"), transfer agent, and fund accounting agent. Services
provided under the Administration Agreement include
37
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 1998
providing day-to-day administration of matters related to the corporate
existence of the Company, maintenance of its records and the preparation of
reports. Services provided under the Transfer Agency Agreements include
providing personnel and facilities to perform shareholder servicing and transfer
agency related services. The terms of the Administration Agreement and Fund
Accounting Agreement provide for annual fees based on a percentage of average
daily net assets. The Transfer Agency Agreement provide for a per account fee in
connection with shareholder servicing. The Fund Accounting Agreement and
Transfer Agency Agreement further provide that out-of-pocket expenses are
reimbursed.
Centura Funds Distributor, Inc. ("the Distributor") acts as the Funds'
Distributor. The Distributor is an affiliate of the Funds' Administrator and was
formed specifically to distribute the Funds.
Each of the Funds has adopted a Master Distribution Plan (the "Plan") with
respect to its Class A and Class B shares. The Plans provide that each class of
shares will pay the Distributor a fee calculated as a percentage of the value of
average daily net assets of that class as reimbursement for its costs incurred
in financing certain distribution and shareholder service activities related to
that class.
The Class A Plan provides for payments by each Fund to the Distributor at an
annual rate not to exceed 0.50% of the Fund's average net assets attributable to
its Class A shares. Such fees may include a Service Fee totaling up to 0.25% of
the average annual net assets attributable to a Fund's Class A shares. Service
Fees are paid to securities dealers and other financial institutions for
maintaining shareholder accounts and providing related services to shareholders.
During the current fiscal year the Distributor has undertaken to limit 12b-1
fees for Class A Shares to 0.40% for Money Market Fund, 0.25% for each other
Fund.
The Class B Plan provides for payments by the Fund to the Distributor at an
annual rate not to exceed 1.00% of the Fund's average net assets attributable to
its Class B shares. Such fees may include a Service Fee totaling up to 0.25% of
the average annual net assets attributable to a Fund's Class B shares. During
the current fiscal year, the Distributor has undertaken to limit 12b-1 fees for
class B shares to 0.75% for Federal Securities Income Fund and North Carolina
Tax-Free Bond Fund.
Centura and its affiliated brokerage and banking companies also serve as
Shareholder Servicing Agent for the Money Market Fund Class A Shares. As such,
Centura and its affiliates provide support services to their clients who are
Class A shareholders. For providing such services, Centura and its affiliates
may receive a fee of up to 0.25% of the average daily net assets of the Funds
services.
Centura Bank acts as custodian for the Funds. For furnishing custodial
services, Centura Bank is paid a monthly fee with respect to the Funds at an
annual rate based on a percentage of average daily net assets plus certain
transaction and out-of-pocket expenses.
38
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 1998
<TABLE>
<CAPTION>
INVESTMENT ADVISORY FEES
------------------------------
ANNUAL FEES 12B-1 FEES VOLUNTARILY
AS A ADMINISTRATION OTHER
PERCENTAGE OF FEES FEES REDUCED EXPENSES
AVERAGE DAILY VOLUNTARILY VOLUNTARILY ---------------------- VOLUNTARILY
NET ASSETS REDUCED REDUCED CLASS A CLASS B REIMBURSED
----------------- ----------- ------------- --------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
Mid Cap Equity Fund............. 0.70% $ -- $ -- $ 16,527 $ -- $ --
Large Cap Equity Fund........... 0.70% 75,833 12,697 1,931 -- --
Southeast Equity Fund........... 0.70% -- -- 3,887 -- --
Federal Securities Income Fund.. 0.30% -- -- 666 171 --
North Carolina Tax-Free Bond
Fund.......................... 0.35% 44,725 18,936 6,123 674 --
Money Market Fund (a)........... 0.30% 59,192 29,596 5 -- 10,646
</TABLE>
In addition, the Distributor also retains a portion of the front-end sales
charge. The following is a summary of dealer commissions paid to the Distributor
and Centura Bank for Class A shares:
<TABLE>
<CAPTION>
DISTRIBUTOR CENTURA BANK
----------- -------------
<S> <C> <C>
Mid Cap Equity Fund.......................................... $ 524 $ 15,936
Large Cap Equity Fund........................................ 672 3,266
Southeast Equity............................................. 2,336 13,976
Federal Securities Income Fund............................... 9 55
North Carolina Tax-Free Bond Fund............................ -- 28
</TABLE>
The Distributor also receives the proceeds of any CDSC imposed on
redemptions of Class B Shares. The following is a summary of the dealer
commissions paid to the distributor and Centura Bank for Class B Shares:
<TABLE>
<CAPTION>
DISTRIBUTOR CENTURA BANK
----------- -------------
<S> <C> <C>
Mid Cap Equity Fund.......................................... $ 8,020 $ 741,604
Large Cap Equity Fund........................................ 4,712 288,956
Southeast Equity............................................. 24,912 421,628
Federal Securities Income Fund............................... -- 3,069
</TABLE>
4. CONCENTRATION OF CREDIT RISK -- The North Carolina Tax-Free Bond Fund
invests substantially all of its assets in a varied portfolio of debt
obligations issued by the State of North Carolina and its authorities and
agencies. The issuers' abilities to meet their obligations may be affected by
economic or political developments in the state of North Carolina.
- ------------
(a) For the period from June 1, 1998 (commencement of operations) to October
31, 1998.
39
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 1998
5. SECURITIES TRANSACTIONS -- The cost of securities purchased and proceeds
from securities sold (excluding short-term securities) for the six month period
ended October 31, 1998, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
-------------- --------------
<S> <C> <C>
Mid Cap Equity Fund.................................... $ 162,117,424 $ 182,817,437
Large Cap Equity Fund.................................. 75,622,395 72,081,830
Southeast Equity....................................... 23,189,439 20,473,623
Federal Securities Income Fund......................... 76,734,155 84,519,241
North Carolina Tax-Free Bond Fund...................... 3,059,855 2,614,433
</TABLE>
6. OPTIONS WRITTEN -- Investing in financial instruments such as written
options, futures and sales of forward foreign currency contracts involves risk
in excess of the amounts reflected in the Statement of Assets and Liabilities.
The face or contract amounts reflect the extent of the involvement the Funds
have in the particular class of instrument. Risks associated with these
instruments include an imperfect correlation between the movements in the price
of the instruments and the price of the underlying securities and interest
rates, and illiquid secondary market for the instruments or inability of
counter-parties to perform under the terms of the contract, and changes in the
value of currency relative to the U.S. dollar. The Federal Securities Income
Fund enters into these contracts primarily as a means to hedge against changes
in interest rates, stock prices, currency fluctuations and other market
developments.
The following is a summary of written put option activity for the six months
period ended October 31, 1998 by the Federal Securities Income Fund:
<TABLE>
<CAPTION>
PUT OPTIONS CALL OPTIONS
--------------------------- ------------------------
NUMBER OF NUMBER OF
CONTRACTS PREMIUMS CONTRACTS PREMIUMS
------------ ------------- ------------ ----------
<S> <C> <C> <C> <C>
Balance at beginning of year....................... 10,000,000 $ 41,797 -- $ --
Options written.................................... 60,000,000 253,125 35,000,000 111,328
Options expired.................................... (50,000,000) (197,266) -- --
Option exercised................................... (5,000,000) (22,266) (35,000,000) (111,328)
------------ ------------- ------------ ----------
Options outstanding at end of period............... 10,000,000 $ 75,390 -- $ --
------------ ------------- ------------ ----------
------------ ------------- ------------ ----------
</TABLE>
40
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 1998
7. CAPITAL SHARE TRANSACTIONS -- The Company is authorized to issue 900
million shares of capital stock with a par value of $.001. Transactions in
shares of the Funds for the six month period ended October 31, 1998 and year
ended April 30, 1998, respectively, were as follows:
<TABLE>
<CAPTION>
MID CAP EQUITY FUND LARGE CAP EQUITY FUND SOUTHEAST EQUITY FUND
------------------------ ------------------------ ------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30,
1998 1998 1998 1998 1998 1998
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued......... $ 1,065,826 $ 3,163,397 $ 275,495 $ 1,056,102 $1,005,455 $2,565,282
Dividends reinvested................ 23,806 2,526,452 13,970 101,011 -- 106,607
Cost of shares redeemed............. (1,259,887) (1,043,262) (121,139) (91,029) (167,766) (88,016)
----------- ----------- ----------- ----------- ----------- -----------
Class A share transaction......... $ (170,255) $ 4,646,587 $ 168,326 $ 1,066,084 $ 837,689 $2,583,873
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
CLASS B
Proceeds from shares issued......... $ 1,502,776 $ 5,645,351 $ 513,319 $ 1,553,426 $1,207,526 $4,157,063
Dividends reinvested................ 2,316 3,082,774 12,838 142,262 -- 161,960
Cost of shares redeemed............. (1,286,764) (1,107,231) (92,081) (53,441) (175,070) (59,035)
----------- ----------- ----------- ----------- ----------- -----------
Class B share transaction......... $ 218,328 $ 7,620,894 $ 434,076 $ 1,642,247 $1,032,456 $4,259,988
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
CLASS C
Proceeds from shares issued......... $13,473,671 $27,803,088 2$3,672,888 $12,594,171 $5,961,900 2$5,455,780
Dividends reinvested................ 332,593 37,998,422 316,618 6,397,356 -- 1,604,687
Cost of shares redeemed............. (32,743,034) (46,852,385) (7,053,008) (15,185,729) (3,364,702) (4,417,805)
----------- ----------- ----------- ----------- ----------- -----------
Class C share transaction......... $(18,936,770) $18,949,125 1$6,936,498 $ 3,805,798 $2,597,198 2$2,642,662
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
SHARE TRANSACTIONS:
CLASS A
Issued.............................. 69,786 192,395 22,860 86,108 74,461 198,109
Reinvested.......................... 1,638 179,802 1,196 8,728 -- 8,398
Redeemed............................ (85,683) (63,367) (10,780) (7,551) (13,395) (6,405)
----------- ----------- ----------- ----------- ----------- -----------
Change in Class A shares.......... (14,259) 308,830 13,276 87,285 61,066 200,102
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
CLASS B
Issued.............................. 99,763 351,351 43,229 126,611 92,269 323,090
Reinvested.......................... 171 222,891 1,106 12,376 -- 12,804
Redeemed............................ (89,887) (68,477) (7,713) (4,320) (14,293) (4,413)
----------- ----------- ----------- ----------- ----------- -----------
Change in Class B shares.......... 10,047 505,765 36,622 134,667 77,976 331,481
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
CLASS C
Issued.............................. 898,989 1,694,904 2,101,081 1,029,572 468,613 2,318,413
Reinvested.......................... 22,621 2,700,946 27,144 555,815 -- 126,558
Redeemed............................ (2,282,461) (2,863,739) (592,121) (1,233,017) (274,591) (337,933)
----------- ----------- ----------- ----------- ----------- -----------
Change in Class C shares.......... (1,360,851) 1,532,111 1,536,104 352,370 194,022 2,107,038
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
</TABLE>
41
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 1998
<TABLE>
<CAPTION>
FEDERAL SECURITIES NORTH CAROLINA MONEY
INCOME FUND TAX-FREE BOND FUND MARKET FUND
------------------------ ------------------------ -----------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED
OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
1998 1998 1998 1998 1998
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued.................... $ 33,233 $ 235,089 $ 245,126 $ 988,212 $ 19,000
Dividends reinvested........................... 12,532 27,234 92,750 178,156 111
Cost of shares redeemed........................ (69,656) (224,712) (66,405) (442,204) (7,654)
----------- ----------- ----------- ----------- -----------
Class A share transaction.................... $ (23,891) $ 37,611 $ 271,471 $ 724,164 $ 11,457
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
CLASS B
Proceeds from shares issued.................... $ 33,987 $ 44,620 $ 55,629 $ 138,381 $ --
Dividends reinvested........................... 2,681 6,601 8,211 13,731 --
Cost of shares redeemed........................ (18,412) (118,485) (1,599) (81,485) --
----------- ----------- ----------- ----------- -----------
Class B share transaction.................... $ 18,256 $ (67,264) $ 62,241 $ 70,627 $ --
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
CLASS C
Proceeds from shares issued.................... $13,861,586 $30,411,839 $4,040,770 $8,617,011 $129,766,294
Dividends reinvested........................... 2,056,588 4,288,523 10,960 24,738 --
Cost of shares redeemed........................ (21,910,579) (26,095,657) (3,966,385) (4,356,092) (71,920,478)
----------- ----------- ----------- ----------- -----------
Class C share transaction.................... $(5,992,405) $ 8,604,705 $ 85,345 $4,285,657 $57,845,816
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
SHARE TRANSACTIONS:
CLASS A
Issued......................................... 3,230 23,306 23,303 95,975 19,000
Reinvested..................................... 1,219 2,693 8,878 17,311 111
Redeemed....................................... (6,751) (22,272) (6,378) (43,267) (7,654)
----------- ----------- ----------- ----------- -----------
Change in Class A shares..................... (2,302) 3,727 25,803 70,019 11,457
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
CLASS B
Issued......................................... 3,288 4,431 5,264 13,248 --
Reinvested..................................... 261 654 786 1,335 --
Redeemed....................................... (1,791) (11,768) (155) (7,984) --
----------- ----------- ----------- ----------- -----------
Change in Class B shares..................... 1,758 (6,683) 5,895 6,599 --
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
CLASS C
Issued......................................... 1,341,604 2,999,680 387,483 836,663 129,766,294
Reinvested..................................... 200,069 424,095 1,049 2,411 --
Redeemed....................................... (2,121,960) (2,571,444) (378,336) (422,570) (71,920,478)
----------- ----------- ----------- ----------- -----------
Change in Class C shares..................... (580,287) 852,331 10,196 416,504 57,845,816
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
</TABLE>
42
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 1998
8. RESULTS OF SHAREHOLDER MEETING -- On July 23, 1998, a Special Meeting of
the Shareholders of the Equity Income Fund (currently, the Large Cap Fund) was
called to approve a change in the investment objective of the Fund. The Fund's
investment objective was to provide long-term capital appreciation and income.
The proposed new investment objective is to provide long-term capital
appreciation.
<TABLE>
<CAPTION>
NO. OF % OF % OF
SHARES OUTSTANDING SHARES SHARES VOTED
------------ ------------------- -------------
<S> <C> <C> <C>
FOR: 3,781,469 69.29% 98.37%
AGAINST: 24,070 0.44% 0.63%
ABSTAINING: 38,400 0.70% 1.00%
TOTAL: 3,843,939 70.43% 100.00%
</TABLE>
43
<PAGE>
CENTURA FUNDS, INC.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MID CAP EQUITY FUND
(FORMERLY EQUITY GROWTH FUND)
------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED
OCTOBER 31, 1998 YEAR ENDED
(UNAUDITED) APRIL 30, 1998
------------------------------------ ------------------------------------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.... $ 16.14 $ 15.88 $ 16.16 $ 15.33 $ 15.20 $ 15.33
-------- -------- -------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income................. 0.02 (0.03) 0.04 0.05 (0.05) 0.09
Net realized and unrealized gains from
investment transactions............. (1.11) (1.09) (1.10) 4.92 4.84 4.94
-------- -------- -------- -------- -------- --------
Total from Investment Activities...... (1.09) (1.12) (1.06) 4.97 4.79 5.03
-------- -------- -------- -------- -------- --------
DISTRIBUTIONS
From net investment income............ (0.02) -- (0.04) (0.05) -- (0.09)
from excess of net investment
income............................ -- -- -- -- -- --
From net realized gains............... -- -- -- (4.11) (4.11) (4.11)
-------- -------- -------- -------- -------- --------
Total Distributions................... (0.02) -- (0.04) (4.16) (4.11) (4.20)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD.......... $ 15.03 $ 14.76 $ 15.06 $ 16.14 $ 15.88 $ 16.16
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
Total Return (excludes sales or
redemption charges).................... (6.72)%(a) (7.04)%(a) (6.51)%(a) 36.55% 35.55% 36.89%
---- ---- ---- ----- ----- -----
---- ---- ---- ----- ----- -----
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)..... $ 12,768 $ 17,090 $147,142 $ 13,935 $ 18,225 $179,859
Ratio of expenses to average net
assets.............................. 1.24%(c) 2.00%(c) 0.98%(c) 1.23% 1.98% 1.00%
Ratio of net investment income to
average net assets.................. 0.29%(c) (0.45)%(c) 0.55%(c) 0.31% (0.43)% 0.56%
Ratio of expenses to average net
assets*............................. 1.49%(c) (d) (d) 1.48% (d) (d)
Portfolio turnover rate**............. 89.61% 89.61% 89.61% 49% 49% 49%
<CAPTION>
MID CAP EQUITY FUND
(FORMERLY EQUITY GROWTH FUND)
------------------------------------
YEAR ENDED
APRIL 30, 1997
------------------------------------
CLASS A CLASS B CLASS C
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.... $ 14.31 $ 14.24 $ 14.31
-------- -------- --------
INVESTMENT ACTIVITIES
Net investment income................. 0.06 (0.04) 0.09
Net realized and unrealized gains from
investment transactions............. 1.58 1.57 1.58
-------- -------- --------
Total from Investment Activities...... 1.64 1.53 1.67
-------- -------- --------
DISTRIBUTIONS
From net investment income............ (0.06) (0.01) (0.09)
from excess of net investment
income............................ -- -- --
From net realized gains............... (0.56) (0.56) (0.56)
-------- -------- --------
Total Distributions................... (0.62) (0.57) (0.65)
-------- -------- --------
NET ASSET VALUE, END OF PERIOD.......... $ 15.33 $ 15.20 $ 15.33
-------- -------- --------
-------- -------- --------
Total Return (excludes sales or
redemption charges).................... 11.55% 10.78% 11.82%
----- ----- -----
----- ----- -----
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)..... $ 8,501 $ 9,761 $147,213
Ratio of expenses to average net
assets.............................. 1.30% 2.05% 1.05%
Ratio of net investment income to
average net assets.................. 0.42% (0.33)% 0.67%
Ratio of expenses to average net
assets*............................. 1.55% 2.05% 1.05%
Portfolio turnover rate**............. 67% 67% 67%
</TABLE>
- ---------------
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
** Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(a) Not annualized.
(b) Annualized.
(c) There were no waivers or reimbursements during the period.
SEE NOTES TO FINANCIAL STATEMENTS.
44
<PAGE>
CENTURA FUNDS, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
<TABLE>
<CAPTION>
MID CAP EQUITY FUND
(FORMERLY EQUITY GROWTH FUND)
-------------------------------------------------------------------------
YEAR ENDED PERIOD ENDED
APRIL 30, 1996 APRIL 30, 1995(a)
---------------------------------- ----------------------------------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD....................... $ 10.70 $ 10.69 $ 10.70 $ 10.00 $ 10.00 $ 10.00
-------- -------- -------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income....... 0.03 (0.06) 0.07 0.06 0.03 0.07
Net realized and unrealized
gains from investment
transactions.............. 3.67 3.65 3.65 0.70 0.69 0.70
-------- -------- -------- -------- -------- --------
Total from Investment
Activities................ 3.70 3.59 3.72 0.76 0.72 0.77
-------- -------- -------- -------- -------- --------
DISTRIBUTIONS
From net investment
income.................... (0.05) -- (0.07) (0.06) (0.03) (0.07)
from excess of net
investment income....... -- -- -- -- -- --
From net realized gains..... (0.04) (0.04) (0.04) -- -- --
-------- -------- -------- -------- -------- --------
Total Distributions......... (0.09) (0.04) (0.11) (0.06) (0.03) (0.07)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD....................... $ 14.31 $ 14.24 $ 14.31 $ 10.70 $ 10.69 $ 10.70
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
Total Return (excludes sales
and redemption charges)...... 34.72% 33.73% 34.97% 7.64%(b) 7.23%(b) 7.71%(b)
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period
(000)..................... $ 5,740 $ 6,194 $133,714 $ 968 $ 1,362 $ 84,004
Ratio of expenses to average
net assets................ 1.26% 2.02% 1.04% 1.29%(c) 2.03%(c) 1.04%(c)
Ratio of net investment
income to average net
assets.................... 0.27% (0.48)% 0.55% 0.63%(c) 0.00%(c) 0.79%(c)
Ratio of expenses to average
net assets*............... (d) (d) (d) 1.32%(c) 2.06%(c) 1.07%(c)
Portfolio Turnover**........ 46% 46% 46% 44% 44% 44%
</TABLE>
- ---------------
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
** Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(a) For the period from June 1, 1994 (commencement of operations) to April 30,
1995.
(b) Not annualized.
(c) Annualized.
(d) There were no waivers or reimbursements during the period.
SEE NOTES TO FINANCIAL STATEMENTS.
45
<PAGE>
CENTURA FUNDS, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
<TABLE>
<CAPTION>
LARGE CAP EQUITY FUND
(FORMERLY EQUITY INCOME FUND)
------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED
OCTOBER 31, 1998 YEAR ENDED
(UNAUDITED) APRIL 30, 1998
------------------------------------ ------------------------------------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD....................... $ 12.60 $ 12.55 $ 12.58 $ 10.91 $ 10.88 $ 10.89
-------- -------- -------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income....... 0.10 0.05 0.11 0.26 0.17 0.29
Net realized and unrealized
gains from investment
transactions.............. (0.42) (0.42) (0.41) 2.90 2.88 2.89
-------- -------- -------- -------- -------- --------
Total from Investment
Activities................ (0.33) (0.37) (0.30) 3.16 3.05 3.18
-------- -------- -------- -------- -------- --------
DISTRIBUTIONS
From net investment
income.................... (0.10) (0.05) (0.11) (0.26) (0.17) (0.28)
From excess of net
investment income......... (e) (0.01) -- -- -- --
From net realized gains..... -- -- -- (1.21) (1.21) (1.21)
-------- -------- -------- -------- -------- --------
Total Distributions......... (0.10) (0.06) (0.11) (1.47) (1.38) (1.49)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD....................... $ 12.18 $ 12.12 $ 12.17 $ 12.60 $ 12.55 $ 12.58
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
Total Return (excludes sales
and redemption charges)...... (2.54)%(b) (2.92)%(b) (2.34)%(b) 30.36% 29.39% 30.72%
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period
(000)..................... $ 1,602 $ 2,552 $ 81,592 $ 1,490 $ 2,182 $ 65,053
Ratio of expenses to average
net assets................ 0.95%(c) 1.71%(c) 0.72%(c) 0.90% 1.64% 0.67%
Ratio of net investment
income to average net
assets.................... 1.58%(c) 0.80%(c) 1.75%(c) 2.05% 1.30% 2.37%
Ratio of expenses to average
net assets*............... 1.45%(c) 1.96%(c) 0.97%(c) 1.55% 2.05% 1.08%
Portfolio Turnover**........ 108.59% 108.59% 108.59% 39% 39% 39%
<CAPTION>
LARGE CAP EQUITY FUND
(FORMERLY EQUITY INCOME FUND)
PERIOD ENDED
APRIL 30, 1997(a)
------------------------------------
CLASS A CLASS B CLASS C
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD....................... $ 10.00 $ 10.00 $ 10.00
-------- -------- --------
INVESTMENT ACTIVITIES
Net investment income....... 0.14 0.11 0.15
Net realized and unrealized
gains from investment
transactions.............. 0.93 0.90 0.91
-------- -------- --------
Total from Investment
Activities................ 1.07 1.01 1.06
-------- -------- --------
DISTRIBUTIONS
From net investment
income.................... (0.14) (0.11) (0.15)
From excess of net
investment income......... -- -- --
From net realized gains..... (0.02) (0.02) (0.02)
-------- -------- --------
Total Distributions......... (0.16) (0.13) (0.17)
-------- -------- --------
NET ASSET VALUE, END OF
PERIOD....................... $ 10.91 $ 10.88 $ 10.89
-------- -------- --------
-------- -------- --------
Total Return (excludes sales
and redemption charges)...... 10.69%(b) 10.15%(b) 10.65%(b)
-------- -------- --------
-------- -------- --------
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period
(000)..................... $ 338 $ 427 $ 52,486
Ratio of expenses to average
net assets................ 0.99%(c) 1.71%(c) 0.75%(c)
Ratio of net investment
income to average net
assets.................... 2.15%(c) 1.52%(c) 2.45%(c)
Ratio of expenses to average
net assets*............... 1.65%(c) 2.12%(c) 1.17%(c)
Portfolio Turnover**........ 24% 24% 24%
</TABLE>
- ---------------
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
** Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(a) For the period from October 1, 1996 (commencement of operations) to April
30, 1997.
(b) Not annualized.
(c) Annualized.
(e) Amount less than $0.005 per share.
SEE NOTES TO FINANCIAL STATEMENTS.
46
<PAGE>
CENTURA FUNDS, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
<TABLE>
<CAPTION>
SOUTHEAST EQUITY FUND
-------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED
OCTOBER 31, 1998 PERIOD ENDED APRIL 30, 1998(a)
(UNAUDITED)
---------------------------------- ----------------------------------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD....................... $ 14.99 $ 14.90 $ 14.99 $ 10.00 $ 10.00 $ 10.00
-------- -------- -------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income....... (0.02) (0.05) (0.01) 0.03 (0.03) 0.06
Net realized and unrealized
gains from investment
transactions.............. (2.75) (2.75) (2.75) 5.87 5.82 5.86
-------- -------- -------- -------- -------- --------
Total from Investment
Activities................ (2.77) (2.80) (2.76) 5.90 5.79 5.92
-------- -------- -------- -------- -------- --------
DISTRIBUTIONS
From net investment
income.................... -- -- -- (0.03) -- (0.06)
from excess of net
investment income....... -- -- -- (0.01) (0.02) --
From net realized gains..... -- -- -- (0.87) (0.87) (0.87)
-------- -------- -------- -------- -------- --------
Total Distributions......... -- -- -- (0.91) (0.89) (0.93)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD....................... $ 12.22 $ 12.10 $ 12.23 $ 14.99 $ 14.90 $ 14.99
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
Total Return (excludes sales
or redemption charges) (b)... $ (18.48)% $ (18.79)% $ (18.41)% 60.75% 59.50% 60.98%
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period
(000)..................... $ 3,191 $ 4,953 $ 28,151 $ 3,000 $ 4,938 $31,583
Ratio of expenses to average
net assets (c)............ 1.52% 2.28% 1.28% 1.46% 2.21% 1.16%
Ratio of net investment
income to average net
assets (c)................ (0.32)% (1.08)% (0.08)% 0.09% (0.66)% 0.46%
Ratio of expenses to average
net assets* (c)........... 1.77% (d) (d) 1.82% 2.32% 1.27%
Portfolio turnover rate**... 59.89% 59.89% 59.89% 71% 71% 71%
</TABLE>
- ---------------
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/orreimbursements had not occurred, the
ratios would have been as indicated.
** Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(a) For the period from May 2, 1997 (commencement of operations) to April 30,
1998.
(b) Not annualized.
(c) Annualized.
(d) There were no waivers or reimbursements during the period.
SEE NOTES TO FINANCIAL STATEMENTS.
47
<PAGE>
CENTURA FUNDS, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
<TABLE>
<CAPTION>
FEDERAL SECURITIES INCOME FUND
------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED
OCTOBER 31, 1998 YEAR ENDED
(UNAUDITED) APRIL 30, 1998
------------------------------------ ------------------------------------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD....................... $ 10.19 $ 10.18 $ 10.19 $ 9.94 $ 9.94 $ 9.94
-------- -------- -------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income....... 0.26 0.23 0.27 0.55 0.50 0.57
Net realized and unrealized
gains from investment
transactions.............. 0.25 0.25 0.25 0.25 0.24 0.25
-------- -------- -------- -------- -------- --------
Total from Investment
Activities................ 0.51 0.48 0.52 0.80 0.74 0.82
-------- -------- -------- -------- -------- --------
DISTRIBUTIONS
From net investment
income.................... (0.26) (0.23) (0.27) (0.55) (0.50) (0.57)
From excess of net
investment income......... -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total Distributions......... (0.26) (0.23) (0.27) (0.55) (0.50) (0.57)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD....................... $ 10.44 $ 10.43 $ 10.44 $ 10.19 $ 10.18 $ 10.19
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
Total Return (excludes sales
or redemption charges)....... (5.05)%(a) (4.80)%(a) (5.19)%(a) 8.21% 7.58% 8.48%
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period
(000)..................... $ 520 $ 152 $128,207 $ 531 $ 131 $131,068
Ratio of expenses to average
net assets................ 0.77%(b) 1.27%(b) 0.52%(b) 0.84% 1.36% 0.59%
Ratio of net investment
income to average net
assets.................... 5.00%(b) 4.49%(b) 5.52%(b) 5.42% 4.93% 5.68%
Ratio of expenses to average
net assets*............... 1.02%(b) 1.52%(b) (c) 1.09% 1.61% 0.59%
Portfolio turnover rate**... 60.70% 60.70% 60.70% 121% 121% 121%
<CAPTION>
FEDERAL SECURITIES INCOME FUND
YEAR ENDED
APRIL 30, 1997
------------------------------------
CLASS A CLASS B CLASS C
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD....................... $ 10.01 $ 10.01 $ 10.01
-------- -------- --------
INVESTMENT ACTIVITIES
Net investment income....... 0.56 0.50 0.59
Net realized and unrealized
gains from investment
transactions.............. (0.07) (0.07) (0.07)
-------- -------- --------
Total from Investment
Activities................ 0.49 0.43 0.52
-------- -------- --------
DISTRIBUTIONS
From net investment
income.................... (0.56) (0.50) (0.59)
From excess of net
investment income......... -- -- --
-------- -------- --------
Total Distributions......... (0.56) (0.50) (0.59)
-------- -------- --------
NET ASSET VALUE, END OF
PERIOD....................... $ 9.94 $ 9.94 $ 9.94
-------- -------- --------
-------- -------- --------
Total Return (excludes sales
or redemption charges)....... 5.07% 4.46% 5.33%
-------- -------- --------
-------- -------- --------
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period
(000)..................... $ 481 $ 194 $119,434
Ratio of expenses to average
net assets................ 0.82% 1.40% 0.58%
Ratio of net investment
income to average net
assets.................... 5.63% 5.04% 5.88%
Ratio of expenses to average
net assets*............... 1.07% 1.65% 0.58%
Portfolio turnover rate**... 26% 26% 26%
</TABLE>
- ---------------
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
** Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(a) Not annualized.
(b) Annualized.
(c) There were no waivers or reimbursements during the period.
SEE NOTES TO FINANCIAL STATEMENTS.
48
<PAGE>
CENTURA FUNDS, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
<TABLE>
<CAPTION>
FEDERAL SECURITIES INCOME FUND
------------------------------------
YEAR ENDED
APRIL 30, 1996
------------------------------------
CLASS CLASS CLASS
A B C
-------- -------- --------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.... $ 9.97 $ 9.97 $ 9.97
-------- -------- --------
INVESTMENT ACTIVITIES
Net investment income................. 0.57 0.50 0.60
Net realized and unrealized gains from
investment transactions............. 0.04 0.04 0.04
-------- -------- --------
Total from Investment Activities...... 0.61 0.54 0.64
-------- -------- --------
DISTRIBUTIONS
From net investment income............ (0.57) (0.50) (0.60)
-------- -------- --------
From excess of net investment
income.............................. -- -- --
Total Distributions................... (0.57) (0.50) (0.60)
-------- -------- --------
NET ASSET VALUE, END OF PERIOD.......... $ 10.01 $ 10.01 $ 10.01
-------- -------- --------
-------- -------- --------
Total Return (excludes sales and
redemption charges)................... 6.20% 5.40% 6.47%
-------- -------- --------
-------- -------- --------
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)..... $ 526 $ 176 $109,775
Ratio of expenses to average net
assets.............................. 0.85% 1.61% 0.61%
Ratio of net investment income to
average net assets.................. 5.61% 4.84% 5.88%
Ratio of expenses to average net
assets*............................. (d) (d) (d)
Portfolio Turnover**.................. 34% 34% 34%
<CAPTION>
PERIOD ENDED
APRIL 30, 1995(a)
------------------------------------
CLASS CLASS CLASS
A B C
-------- -------- --------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.... $ 10.00 $ 10.00 $ 10.00
-------- -------- --------
INVESTMENT ACTIVITIES
Net investment income................. 0.52 0.45 0.54
Net realized and unrealized gains from
investment transactions............. (0.03) (0.03) (0.03)
-------- -------- --------
Total from Investment Activities...... 0.49 0.42 0.51
-------- -------- --------
DISTRIBUTIONS
From net investment income............ (0.52) (0.45) (0.54)
-------- -------- --------
From excess of net investment
income.............................. -- -- --
Total Distributions................... (0.52) (0.45) (0.54)
-------- -------- --------
NET ASSET VALUE, END OF PERIOD.......... $ 9.97 $ 9.97 $ 9.97
-------- -------- --------
-------- -------- --------
Total Return (excludes sales and
redemption charges)................... 5.02%(b) 4.32%(b) 5.28%(b)
-------- -------- --------
-------- -------- --------
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)..... $ 247 $ 118 $ 93,807
Ratio of expenses to average net
assets.............................. 0.86%(c) 1.61%(c) 0.63%(c)
Ratio of net investment income to
average net assets.................. 5.58%(c) 4.86%(c) 5.97%(c)
Ratio of expenses to average net
assets*............................. 0.89%(c) 1.64%(c) 0.66%(c)
Portfolio Turnover**.................. 42% 42% 42%
</TABLE>
- ---------------
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
** Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(a) For the period from June 1, 1994 (commencement of operations) to April 30,
1995.
(b) Not annualized.
(c) Annualized.
(d) There were no waivers or reimbursements during the period.
SEE NOTES TO FINANCIAL STATEMENTS.
49
<PAGE>
CENTURA FUNDS, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
<TABLE>
<CAPTION>
NORTH CAROLINA TAX-FREE BOND FUND
------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED
OCTOBER 31, 1998 YEAR ENDED
(UNAUDITED) APRIL 30, 1998
------------------------------------ ------------------------------------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD....................... $ 10.30 $ 10.30 $ 10.30 $ 9.98 $ 9.98 $ 9.98
-------- -------- -------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income....... 0.21 0.19 0.23 0.43 0.38 0.46
Net realized and unrealized
gains from investment
transactions.............. 0.30 0.30 0.30 0.32 0.32 0.32
-------- -------- -------- -------- -------- --------
Total from Investment
Activities................ 0.51 0.49 0.53 0.75 0.70 0.78
-------- -------- -------- -------- -------- --------
DISTRIBUTIONS
From net investment
income.................... (0.21) (0.19) (0.23) (0.43) (0.38) (0.46)
From excess of net
investment income......... -- -- -- -- -- --
From net realized gains..... -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total Distributions......... (0.21) (0.19) (0.23) (0.43) (0.38) (0.46)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD....................... $ 10.60 $ 10.60 $ 10.60 $ 10.30 $ 10.30 $ 10.30
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
Total Return (excludes sales
or redemption charges)....... 5.14%(a) 4.81%(a) 5.36%(a) 7.61% 7.09% 7.89%
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period
(000)..................... $ 5,073 $ 588 $ 38,650 $ 4,664 $ 511 $ 37,456
Ratio of expenses to average
net assets................ 0.69%(b) 1.18%(b) 0.43%(b) 0.69% 1.18% 0.44%
Ratio of net investment
income to average net
assets.................... 4.04%(b) 3.53%(b) 4.30%(b) 4.19% 3.70% 4.44%
Ratio of expenses to average
net assets*............... 1.21%(b) 1.71%(b) 0.71%(b) 1.29% 1.78% 0.79%
Portfolio turnover rate**... 6.06% 6.06% 6.06% 29% 29% 29%
<CAPTION>
NORTH CAROLINA TAX-FREE BOND FUND
------------------------------------
YEAR ENDED
APRIL 30, 1997
------------------------------------
CLASS A CLASS B CLASS C
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD....................... $ 10.04 $ 10.04 $ 10.04
-------- -------- --------
INVESTMENT ACTIVITIES
Net investment income....... 0.43 0.37 0.46
Net realized and unrealized
gains from investment
transactions.............. 0.03 0.03 0.03
-------- -------- --------
Total from Investment
Activities................ 0.46 0.40 0.49
-------- -------- --------
DISTRIBUTIONS
From net investment
income.................... (0.43) (0.37) (0.46)
From excess of net
investment income......... -- -- --
From net realized gains..... (0.09) (0.09) (0.09)
-------- -------- --------
Total Distributions......... (0.52) (0.46) (0.55)
-------- -------- --------
NET ASSET VALUE, END OF
PERIOD....................... $ 9.98 $ 9.98 $ 9.98
-------- -------- --------
-------- -------- --------
Total Return (excludes sales
or redemption charges)....... 4.71% 4.11% 4.97%
-------- -------- --------
-------- -------- --------
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period
(000)..................... $ 3,823 $ 430 $ 32,159
Ratio of expenses to average
net assets................ 0.69% 1.27% 0.44%
Ratio of net investment
income to average net
assets.................... 4.31% 3.73% 4.56%
Ratio of expenses to average
net assets*............... 1.30% 1.88% 0.80%
Portfolio turnover rate**... 34% 34% 34%
</TABLE>
- ---------------
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
** Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(a) Not annualized.
(b) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
50
<PAGE>
CENTURA FUNDS, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
<TABLE>
<CAPTION>
NORTH CAROLINA TAX-FREE BOND FUND
------------------------------------
YEAR ENDED
APRIL 30, 1996
------------------------------------
CLASS CLASS CLASS
A B C
-------- -------- --------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.... $ 9.98 $ 9.98 $ 9.98
-------- -------- --------
INVESTMENT ACTIVITIES
Net investment income................. 0.42 0.34 0.44
Net realized and unrealized gains from
investment transactions............. 0.13 0.13 0.13
-------- -------- --------
Total from Investment Activities...... 0.55 0.47 0.57
-------- -------- --------
DISTRIBUTIONS
From net investment income............ (0.42) (0.34) (0.44)
From net realized gains............... (0.07) (0.07) (0.07)
-------- -------- --------
Total Distributions................... (0.49) (0.41) (0.51)
-------- -------- --------
NET ASSET VALUE, END OF PERIOD.......... $ 10.04 $ 10.04 $ 10.04
-------- -------- --------
-------- -------- --------
Total Return (excludes sales and
redemption charges)................... 5.50% 4.72% 5.78%
-------- -------- --------
-------- -------- --------
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)..... $ 3,927 $ 393 $ 37,009
Ratio of expenses to average net
assets.............................. 0.68% 1.44% 0.44%
Ratio of net investment income to
average net assets.................. 3.98% 3.30% 4.32%
Ratio of expenses to average net
assets*............................. 1.04% 1.80% 0.80%
Portfolio Turnover**.................. 80% 80% 80%
<CAPTION>
NORTH CAROLINA TAX-FREE BOND FUND
------------------------------------
PERIOD ENDED
APRIL 30, 1995(a)
------------------------------------
CLASS CLASS CLASS
A B C
-------- -------- --------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.... $ 10.00 $ 10.00 $ 10.00
-------- -------- --------
INVESTMENT ACTIVITIES
Net investment income................. 0.39 0.32 0.41
Net realized and unrealized gains from
investment transactions............. (0.02) (0.02) (0.02)
-------- -------- --------
Total from Investment Activities...... 0.37 0.30 0.39
-------- -------- --------
DISTRIBUTIONS
From net investment income............ (0.39) (0.32) (0.41)
From net realized gains............... -- -- --
-------- -------- --------
Total Distributions................... (0.39) (0.32) (0.41)
-------- -------- --------
NET ASSET VALUE, END OF PERIOD.......... $ 9.98 $ 9.98 $ 9.98
-------- -------- --------
-------- -------- --------
Total Return (excludes sales and
redemption charges)................... 3.77%(b) 3.09%(b) 4.08%(b)
-------- -------- --------
-------- -------- --------
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)..... $ 429 $ 275 $ 34,885
Ratio of expenses to average net
assets.............................. 0.42%(c) 0.99%(c) 0.41%(c)
Ratio of net investment income to
average net assets.................. 4.46%(c) 3.89%(c) 4.64%(c)
Ratio of expenses to average net
assets*............................. 0.92%(c) 1.49%(c) 0.91%(c)
Portfolio Turnover**.................. 121% 121% 121%
</TABLE>
- ---------------
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
** Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
(a) For the period from June 1, 1994 (commencement of operations) to April 30,
1995.
(b) Not annualized.
(c) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
51
<PAGE>
CENTURA FUNDS, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
<TABLE>
<CAPTION>
MONEY MARKET FUND
----------------------
FOR THE SIX MONTHS
ENDED
OCTOBER 31, 1998(A)
(UNAUDITED)
----------------------
CLASS CLASS
A C
-------- --------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.... $ 1.000 $ 1.000
-------- --------
INVESTMENT ACTIVITIES
Net investment income................. 0.020 0.020
Net realized and unrealized gains from
investment transactions............. -- --
-------- --------
Total from Investment Activities...... 0.020 0.020
-------- --------
DISTRIBUTIONS
From net investment income............ (0.020) (0.020)
From excess of net investment
income.............................. -- --
From net realized gains............... -- --
-------- --------
Total Distributions................... (0.020) (0.020)
-------- --------
NET ASSET VALUE, END OF PERIOD.......... $ 1.000 $ 1.000
-------- --------
-------- --------
Total Return (b) (excludes sales or
redemption charges)................... 1.83% 2.23%
-------- --------
-------- --------
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)..... $ 11 $ 57,846
Ratio of expenses to average net
assets (c).......................... 0.76% 0.20%
Ratio of net investment income to
average net assets (c).............. 3.58% 4.38%
Ratio of expenses to average net
assets* (c)......................... 1.27% 0.59%
</TABLE>
- ---------------
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
(a) For the period from June 1, 1998 (commencement of operations) to October
31, 1998.
(b) Not annualized.
(c) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
52
<PAGE>
[LOGO]
FOR ADDITIONAL INFORMATION ON THE
CENTURA FUNDS, CALL
1-800-44-CENTURA
(800-442-3688).
INVESTMENT ADVISER AND CUSTODIAN
Centura Bank
131 North Church Street
Rocky Mount, NC 27802
ADMINISTRATOR AND SPONSOR
BISYS Fund Services, Inc.
3435 Stelzer Road
Columbus, OH 43219
DISTRIBUTOR
Centura Funds Distributor, Inc.
3435 Stelzer Road
Columbus, OH 43219
LEGAL COUNSEL
Dechert Price & Rhoads
1775 Eye Street N.W.
Washington, D.C. 20006
INDEPENDENT AUDITORS
McGladrey & Pullen LLP
555 Fifth Avenue
New York, NY 10017
This report is for the information of the shareholders of
Centura Funds. Its use in connection with any offering of the
Funds shares is authorized only in case of a concurrent or
prior delivery of the Funds current prospectus.
Investments in mutual funds involve risk, including possible
loss of principal. Centura Funds are not deposits, guaran-
teed by or obligations of Centura Bank or its affiliates and
are not insured by the FDIC, the Federal Reserve Board or
any other government agency. There can be no assurance
that the Money Market Fund will be able to maintain a
stable net asset value of $1.00 per share.
CNANN1298
[LOGO]
CENTURA
MID CAP EQUITY
FUND
CENTURA
LARGE CAP EQUITY
FUND
CENTURA
SOUTHEAST EQUITY
FUND
CENTURA
FEDERAL SECURITIES
INCOME FUND
CENTURA
NORTH CAROLINA
TAX-FREE BOND
FUND
CENTURA
MONEY MARKET
FUND
SEMI-
ANNUAL
REPORT
October 31, 1998
12/98
