<PAGE>
[LOGO]
CENTURA LARGE CAP EQUITY FUND
CENTURA MID CAP EQUITY FUND
CENTURA SMALL CAP EQUITY FUND
CENTURA GOVERNMENT INCOME FUND
CENTURA QUALITY INCOME FUND
CENTURA NORTH CAROLINA TAX-FREE BOND FUND
CENTURA MONEY MARKET FUND
ANNUAL REPORT
APRIL 30, 2000
<PAGE>
TABLE OF CONTENTS
Message From Your President
Page 1
Large Cap Equity Fund
Page 5
Mid Cap Equity Fund
Page 12
Small Cap Equity Fund
Page 20
Government Income Fund
Page 28
Quality Income Fund
Page 34
North Carolina Tax-Free Bond Fund
Page 40
Money Market Fund
Page 47
Notes to Financial Statements
Page 52
Independent Auditors' Report
Page 62
<PAGE>
--------------------------------------------------------------------------------
[LOGO]
DEAR SHAREHOLDERS:
We are pleased to present this report for Centura Funds' fiscal year ended
April 30, 2000. This past year provided solid investment performance as well as
continued focus of the significant enhancements that took place in 1998.
Plans of enhancing our investment process within the Centura Funds occurred
during the second half of 1998. At that time we sharpened our investment focus
on specific core investment classes that are represented by distinct, well known
market indices. These changes better defined the Funds and helped eliminate
overlap in holdings. For our shareholders this continues to provide better
diversification potential and may help provide greater relative investment
consistency. By targeting specific investment classes and benchmarks, this also
allows shareholders and investment advisors to better employ asset allocation
strategies. It also tends to enhance investment predictability, better
performance comparisons and helps to ensure solid long-term investment
performance. These changes that began in the second half of 1998 now have more
than a year of operation under their belts and are beginning to firmly establish
their philosophies.
So far, it appears that we are headed in the right direction. For the period
July 31, 1998 through April 30, 2000, all of Centura's equity funds have
outperformed their target benchmarks while maintaining close correlation to
these indices. With the emphasis that we put on diversification through proper
asset allocation, remaining closely correlated to their respective benchmarks is
of utmost importance.
EQUITY MARKETS
It has been a very busy year in the equity markets, for the period that
encompasses our fiscal year. The Dow crossed the 11,750 mark and then fell about
2,000 points to 9,731. In other words, one could say that volatility reigned in
the equity markets. Most of this volatility can be traced to higher interest
rates. Over the fund's fiscal year the Federal Reserve raised the Fed Funds rate
by 25 basis points on five separate occasions, for a total of 1.25%. The Fed was
concerned by the growth rate of the economy, the level of consumer confidence,
and the historically low unemployment rate. Their rate increases were a
preemptive strike to slow the economy and quell the supposed threat of
inflation. With this constant threat of higher rates, either by the Fed making
actual moves or by announcing a bias, the Fed helped create very nervous and
uncertain markets, which resulted in volatility.
Historically, when the Fed has tightened credit, higher rates and less
liquidity have impeded earnings, helping to cool markets. However, the most
recent rate increases did not affect all sectors of the market equally. As
interest rates rose, investors pulled money out of interest-sensitive sectors
and moved into technology. The belief was (and still is) that the technology
sector could grow earnings faster than inflation could eat them away.
As a result, the market stratified into two tiers: technology stocks
reaching new highs, and basically everything else, experiencing a bear market.
This was the case for stocks of all sizes. Also, characteristic of this period
was the out-performance by growth indices over value.
For the 12 months ended April 30, 2000 the S&P 500 Index(1) was up 10.13%
for the year. However, for the first time in several years, the mid and smaller
company indices outperformed their larger counterparts. The S&P MidCap 400
Index(2) was up 23.50% and the S&P SmallCap 600(3) Index was up 20.50%. For the
past few years large-caps have outperformed mid and small-caps partially because
of the increased presence of technology within the S&P 500, which now stands at
about 32% of the index. Both the mid and small-cap indices have recently
increased their technology weightings (both currently at about 30%). This has
helped them outperform the large-caps, particularly in the last four months of
our reporting period. From January to April 2000, the S&P MidCap 400(2) and
--------------
Past performance is no guarantee of future results. Investment return and NAV
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than the original cost.
(1) The S&P 500 Index is an unmanaged index generally representative of the
domestic stock market.
(2) The S&P MidCap 400 Index is an unmanaged index generally representative of
the domestically traded common stocks of mid-sized companies.
(3) The S&P SmallCap 600 Index is an unmanaged index generally representative of
the domestically traded common stocks of small- sized companies.
1
<PAGE>
SmallCap 600(3) provided year-to-date returns of 8.75% and 4.00%, respectively.
Over the same period the S&P 500 posted a -0.78% decline. This is further
evidence of why we feel it is important to offer distinctly different investment
options, and why we feel investors should employ a diversified investment
allocation.
FIXED INCOME MARKETS
As stated before, during our fiscal year the Fed has raised the Fed Funds
rate a total of 1.25% through a series of five, 25 basis point increases. The
Fed Funds target rate currently stands at 6.00% with a few more increases
expected this summer.
Economic growth, as measured by Gross Domestic Product (GDP), was up an
incredible 7.3% for the fourth quarter of 1999 and a total of 4.6% for 1999.
This is well above the 3.0% to 3.5% range that the Fed is more comfortable with.
The unemployment rate continues to hover around the 4.1% mark, which is a 30
year low. Oil prices have climbed significantly throughout our reporting period,
peaking at $35/barrell in Mid-March. After a decision by OPEC members to
increase oil production, prices fell to around $24/barrell in early April.
However, as of the last couple of weeks in April, prices have begun climbing
again. These indicators, signaling accelerating economic growth, tight labor
markets, and increasing energy prices are a few of the factors that concerned
the Fed enough to raise rates 1.25%.
The Fed also believes that aggregate demand is persistently growing faster
than sustainable supply, as confirmed by a falling jobless rate. Secondly,
demand appears to be accelerating. The Fed was worried that some of the rate
hikes have largely been offset by the positive wealth effect from rising stock
prices. In addition, the Fed believes the unemployment rate has already fallen
to and possibly beyond its inflation-safe level. Consequently, the Fed thought
and still thinks that there is an unacceptable risk of the economy overheating
and thus a greater urgency to slow the economy to a sustainable pace.
The one thing that kept the Fed to a gradualist approach, for the year, was
the strong productivity growth that helped keep unit labor costs and inflation
in check, thereby allowing the Fed to move slowly. Rising productivity implies
that the expected upturn in inflation will be gradual and thus easier to control
than in past inflation cycles.
In conclusion, we expect long term rates, as measured by the 30 year U.S.
Treasury bond, to remain steady to lower, somewhere between 6.25% and 7.00% for
the next few months. We still expect the short end of the yield curve to rise as
the Fed continues to raise the target Fed Funds Rate.
LOOKING FORWARD
As long as there is uncertainty about interest rates, there should be
continued volatility in the markets. Remember, markets hate uncertainty and the
market is tied to the Fed now, more than ever. Chairman Greenspan and several
other Federal Reserve governors continue to imply additional increases will be
needed to slow the economy and quell the threat of inflation. The markets still
believe there are more rate hikes to come. The Fed Funds futures show a possible
50 basis point increase at the May 16 Fed meeting, followed by a 25 basis point
increase at the June meeting and another 25 basis point increase in October. As
long as these threats persist, the markets will rely less on fundamentals.
As mentioned before, during the first four months of 2000 we saw mid and
small-cap stocks outperform large-caps, largely because of their increased
presence in technology. Going forward, we believe technology should continue to
lead the way. But the Internet revolution will benefit more than just tech
companies. Many old economy companies that embrace this change also stand to
gain.
The Internet revolution is the key to productivity. We believe productivity
growth rates will remain strong, maybe not as strong as the record levels we
have seen over the past few quarters, but higher than the historical average.
With more than 5,000 companies in the internet world, we are still a long way
away from declining productivity levels.
However, the key for investors is not to be distracted by the short-term
bumps in the market. Despite recent and anticipated volatility, our market
outlook remains optimistic. The prospects for positive corporate earnings and
continued economic prosperity remain bright.
THE FUNDS
Centura Funds continued to provide solid performance for shareholders this
past fiscal year. The following provides insight regarding each Fund. We will
illustrate this discussion with the performance of Class C shares.
2
<PAGE>
Note, however, that class A and B share performances were more moderate due to
their higher expenses (see graphs on their respective pages).
THE CENTURA LARGE CAP EQUITY FUND
Given the overall performance of Large Company stocks, especially in 1999,
it was not surprising that the Centura Large Cap Equity Fund rewarded its
shareholders handsomely, again, this past year. For the fiscal year, even though
Large Caps did not perform at quite the same pace as the past couple of years,
they still came out ahead of their historical average. The Fund (Class C shares)
provided a total return of 14.88% for the year ended April 30, 2000. The Fund's
benchmark, the S&P 500 Index(1), was up only 10.13% for the same period. If
beating our benchmark index is our goal, then the Large Cap Equity Fund had a
great year, with outperformance of 4.75%.
The Large Cap Equity Fund's performance benefited from overweightings in
some of the markets best performing sectors, such as technology and capital
goods. The Fund continues to overweight these sectors, as we believe they will
continue their leadership in an improving world economy.
THE CENTURA MID CAP EQUITY FUND
Due to the strong performance of mid-sized company stocks, the Centura Mid
Cap Equity Fund had a very healthy year. The Fund (Class C shares) provided a
total return of 21.67% for the year ended April 30, 2000. This compares to a
return from the S&P MidCap 400 Index(2) of 23.50%.
After several years of trailing larger company stocks, it was nice to see
the mid-sized company stocks outperform the large-caps. Properly allocated
portfolios were well rewarded.
THE CENTURA SMALL CAP EQUITY FUND
With a total return of 20.24% (Class C shares) for the year ended April 30,
2000, the S&P SmallCap 600 Index(3) returned 20.50% for the same time period. We
remain very pleased with the Fund's strong relative performance.
While we can make no guarantees regarding future performance, we believe
that small company stocks continue to remain a potentially attractive investment
class that should not be forgotten. Additionally, we believe the Centura Small
Cap Equity Fund is a viable investment vehicle to capture its potential.
THE CENTURA GOVERNMENT INCOME FUND
The Centura Government Income Fund (Class C shares) provided a total return
of 1.99% for the year ended April 30, 2000. This compares to 2.10% for the
Lehman Brothers Intermediate Government Bond Index(4) and 1.48% for the average
short/intermediate U.S. Government Fund, according to Lipper Analytical
Services.
During the latter half of our fiscal year the government's announcement to
buyback Treasury debt helped propel the U.S Treasury sector forward and resulted
in spreads widening further. In other words, this increased the value of
treasuries relative to other fixed income securities. The Fund's relative
underweighting in treasuries thus impacted performance relative to the Lehman
Brothers Intermediate Government Bond Index(4).
THE CENTURA QUALITY INCOME FUND
The Centura Quality Income Fund began operations in early May of 1999. The
Fund returned 0.20% (Class C shares) for the period ended April 30, 2000. This
compares to 0.93% for the Lehman Brothers Government/Corporate Bond Index(5).
--------------
Past performance is no guarantee of future results. Investment return and NAV
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than the original cost.
(1) The S&P 500 Index is an unmanaged index generally representative of the
domestic stock market.
(2) The S&P MidCap 400 Index is an unmanaged index generally representative of
the domestically traded common stocks of mid-sized companies.
(3) The S&P SmallCap 600 Index is an unmanaged index generally representative of
the domestically traded common stocks of small- sized companies.
(4) The Lehman Brothers Intermediate Government Bond Index is an unmanaged index
generally representative of the government bond market.
(5) The Lehman Brothers Government/Corporate Bond Index is an unmanaged index
generally representative of the intermediate government and corporate bond
markets.
3
<PAGE>
As we mentioned above with the Centura Government Income Fund, the treasury
buyback announcement by the government positively impacted the value of
treasuries relative to other fixed income securities. As a result, the Fund's
relative underweighting in treasuries impacted performance relative to the
Lehman Brothers Government/ Corporate Bond Index(5).
THE CENTURA NORTH CAROLINA TAX-FREE BOND FUND
The Centura North Carolina Tax-Free Bond Fund (Class C shares) provided a
total return of -0.90% for the year ended April 30, 2000. This compared to the
Fund's benchmark, the Lehman Brothers 5-Year Municipal Index(6), which returned
0.36%, and Lipper State Intermediate Municipal Average(7) return of -1.43%.
Municipal securities, though not as liquid as treasury securities, were
perceived as relatively safe investments during the volatile markets of this
past year. Consequently, higher quality markets like North Carolina's, weathered
the volatile swings quite well.
THE CENTURA MONEY MARKET FUND
With a total return of 5.37% (Class C shares) for the year ended April 30,
2000, the Fund outperformed both its benchmarks, the Lipper Institutional Money
Market(8) and Lipper Money Market(9) averages which provided returns of 5.25%
and 4.82%, respectively.
--------------
Past performance is no guarantee of future results. Investment return and NAV
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than the original cost.
(5) The Lehman Brothers Government/Corporate Bond Index is an unmanaged index
generally representative of the intermediate government and corporate bond
markets.
(6) The Lehman Brothers 5-Year Municipal Index is an unmanaged index generally
representative of the municipal bond market.
(7) The Lipper State Intermediate Municipal Average is an average of the total
returns reported by all the mutual funds designated by Lipper, Inc. that fall
into this category.
(8) The Lipper Institutional Money Market Average is an average of the total
returns reported by all the mutual funds designated by Lipper, Inc. that fall
into this category.
(9) The Lipper Money Market Average is an average of the total returns reported
by all the mutual funds designated by Lipper, Inc. that fall into this
category.
4
<PAGE>
CENTURA FUNDS, INC.
AS OF APRIL 30, 2000
LARGE CAP EQUITY FUND
GROWTH OF A $10,000 INVESTMENT
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
CLASS A
<S> <C> <C> <C>
with Load
(Return
reflects
Class A maximum sales
without Load load of 4.50%) S&P 500*
12/90 $10,000 $9,550 $10,000
12/91 $11,822 $11,285 $13,055
12/92 $13,002 $12,411 $14,056
12/93 $14,617 $13,953 $15,460
12/94 $14,526 $13,868 $15,663
12/95 $18,551 $17,707 $21,525
12/96 $22,264 $21,252 $26,492
12/97 $29,618 $28,278 $35,330
12/98 $32,853 $31,360 $45,428
04/99 $35,726 $34,103 $49,539
12/99 $40,928 $39,068 $54,988
04/00 $40,955 $39,093 $54,577
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
<S> <C> <C> <C>
1 YEAR 14.63% 9.48% 10.13%
5 YEAR 20.89% 19.79% 25.22%
SINCE INCEPTION 16.32% 15.74% 19.94%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
CLASS B
<S> <C> <C> <C>
with Load
(Return reflects the
appropriate contingent
deferred sales charge
Class B (maximum deferred sales
without Load load is 5.00%)) S&P 500*
12/90 $10,000 $9,500 $10,000
12/91 $11,771 $11,271 $13,055
12/92 $12,877 $12,477 $14,056
12/93 $14,406 $14,106 $15,460
12/94 $14,083 $13,883 $15,663
12/95 $18,089 $17,989 $21,525
12/96 $21,592 $21,592 $26,492
12/97 $28,046 $28,046 $35,330
12/98 $31,372 $31,372 $45,428
04/99 $34,057 $34,057 $49,539
12/99 $38,782 $38,782 $54,988
04/00 $38,731 $38,731 $54,557
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
<S> <C> <C> <C>
1 YEAR 13.72% 8.72% 10.13%
5 YEAR 20.05% 19.95% 25.22%
SINCE INCEPTION 15.62% 15.62% 19.94%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
CLASS C
<S> <C> <C>
(No Load) S&P 500*
12/90 $10,000 $10,000
12/91 $11,898 $13,055
12/92 $13,134 $14,056
12/93 $14,861 $15,460
12/94 $14,651 $15,663
12/95 $19,019 $21,525
12/96 $22,923 $26,492
12/97 $30,049 $35,330
12/98 $33,973 $45,428
04/99 $36,990 $49,539
12/99 $42,439 $54,988
04/00 $42,493 $54,557
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
<S> <C> <C>
1 YEAR 14.88% 10.13%
5 YEAR 21.23% 25.22%
SINCE INCEPTION 16.78% 19.94%
</TABLE>
Each chart represents a historical investment of $10,000 in the Centura Large
Cap Equity Fund from 12/90 to 4/00, and represents the reinvestment of dividends
and capital gains in the Fund.
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.
Investors cannot invest directly in an index, although they can invest in its
underlying securities.
The inception date for performance purposes is December 31, 1990. The quoted
performance of the Centura Large Cap Equity Fund (formerly 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 investment objective,
policies and techniques of the Commingled Accounts were equivalent in all
material aspects to those 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, their
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.
5
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
LARGE CAP EQUITY FUND APRIL 30, 2000
<TABLE>
<CAPTION>
COMMON STOCKS (99.4%)
MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
AIRLINES (0.2%)
AMR Corp. (b)..................................... 11,000 $ 374,688
------------
APPLIANCES & HOUSEHOLD PRODUCTS (0.3%)
Whirlpool Corp.................................... 10,000 651,250
------------
AUTO PARTS (0.3%)
Delphi Automotive Systems Corp.................... 35,000 669,375
------------
AUTOMOBILES & TRUCKS (1.2%)
Ford Motor Co..................................... 30,000 1,640,625
General Motors Corp............................... 10,000 936,250
------------
2,576,875
------------
BANKING & FINANCIAL SERVICES (10.0%)
American Express Co............................... 5,000 750,313
Bank of New York Co., Inc......................... 30,000 1,231,875
BankAmerica Corp.................................. 40,000 1,960,000
Capital One Financial Corp........................ 18,000 787,500
Chase Manhattan Corp.............................. 20,000 1,441,250
Citigroup, Inc.................................... 70,000 4,160,624
Fannie Mae........................................ 25,000 1,507,813
Fifth Third Bancorp............................... 15,000 946,875
FleetBoston Financial Corp........................ 30,000 1,063,125
Lehman Brothers Holdings, Inc..................... 10,000 820,625
MBNA Corp......................................... 40,000 1,062,500
Mellon Financial Corp............................. 30,000 963,750
Morgan Stanley Dean Witter & Co................... 20,000 1,535,000
Northern Trust Corp............................... 15,000 961,875
State Street Corp................................. 10,000 968,750
Wells Fargo & Co.................................. 45,000 1,847,813
------------
22,009,688
------------
CHEMICALS (1.3%)
Dow Chemical Co................................... 8,000 904,000
E.I. du Pont de Nemours & Co...................... 25,000 1,185,938
Union Carbide Corp................................ 12,000 708,000
------------
2,797,938
------------
COMMERCIAL SERVICES (0.3%)
Cendant Corp. (b)................................. 40,000 617,506
------------
COMPUTER INDUSTRY (23.5%)
Adobe Systems, Inc................................ 10,000 1,209,375
America Online, Inc. (b).......................... 35,000 2,093,438
BMC Software, Inc. (b)............................ 7,500 351,094
Cisco Systems, Inc. (b)........................... 130,000 9,012,655
Citrix Systems, Inc. (b).......................... 15,000 915,938
Dell Computer Corp. (b)........................... 60,000 3,007,500
EMC Corp. (b)..................................... 27,000 3,751,313
Hewlett-Packard Co................................ 23,000 3,105,000
Intel Corp........................................ 60,000 7,608,749
International Business Machines Corp.............. 40,000 4,465,000
Microsoft Corp. (b)............................... 98,162 6,846,799
Oracle Corp. (b).................................. 60,000 4,796,250
Sun Microsystems, Inc. (b)........................ 34,000 3,125,875
<CAPTION>
COMMON STOCKS, CONTINUED:
MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
Yahoo!, Inc. (b).................................. 15,000 $ 1,953,750
------------
52,242,736
------------
CONSUMER GOODS AND SERVICES (2.9%)
Colgate-Palmolive Co.............................. 24,000 1,370,999
Dow Jones & Co., Inc.............................. 10,000 648,750
Gillette Co....................................... 20,000 740,006
Kimberly-Clark Corp............................... 20,000 1,161,250
Procter & Gamble Co............................... 20,000 1,192,500
Ralston Purina Co................................. 25,000 442,188
Unilever N.V...................................... 20,000 911,250
------------
6,466,943
------------
DISTRIBUTION/WHOLESALE (0.4%)
SYSCO Corp........................................ 25,000 940,625
------------
DIVERSIFIED OPERATIONS (7.4%)
General Electric Co............................... 60,000 9,434,999
Honeywell International, Inc...................... 35,000 1,960,000
Illinois Tool Works, Inc.......................... 12,000 768,750
Tyco International Ltd............................ 55,000 2,526,563
United Technologies Corp.......................... 25,000 1,554,688
------------
16,245,000
------------
ELECTRONIC COMPONENTS/INSTRUMENTS (4.8%)
Applied Materials, Inc. (b)....................... 20,000 2,036,250
KLA-Tencor Corp. (b).............................. 20,000 1,497,500
Solectron Corp. (b)............................... 45,000 2,106,563
Teradyne, Inc. (b)................................ 15,000 1,650,000
Texas Instruments, Inc............................ 20,000 3,257,500
------------
10,547,813
------------
ENERGY (6.6%)
Enron Corp........................................ 30,000 2,090,625
Exxon Mobil Corp.................................. 70,000 5,438,143
Halliburton Co.................................... 20,000 883,750
Kerr-McGee Corp................................... 10,000 517,500
Royal Dutch Petroleum Co.......................... 40,000 2,294,999
Schlumberger Ltd.................................. 15,000 1,148,438
Transocean Sedco Forex, Inc....................... 2,899 136,253
Unocal Corp....................................... 15,000 484,688
USX-Marathon Group................................ 27,000 629,438
Williams Cos., Inc................................ 25,000 932,813
------------
14,556,647
------------
ENTERTAINMENT (0.8%)
Time Warner, Inc.................................. 20,000 1,798,750
------------
FOOD AND BEVERAGES (3.5%)
Anheuser Busch Co., Inc........................... 25,000 1,764,062
Bestfoods......................................... 25,000 1,256,250
Coca Cola Co...................................... 30,000 1,411,875
McDonald's Corp................................... 45,000 1,715,625
PepsiCo, Inc...................................... 45,000 1,650,938
------------
7,798,750
------------
HEALTH CARE (11.1%)
American Home Products Corp....................... 30,000 1,685,625
</TABLE>
CONTINUED
6
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
LARGE CAP EQUITY FUND APRIL 30, 2000
<TABLE>
<CAPTION>
COMMON STOCKS, CONTINUED:
MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
Amgen, Inc. (b)................................... 35,000 $ 1,960,000
Biogen, Inc. (b).................................. 15,000 882,188
Bristol-Myers Squibb Co........................... 43,000 2,254,813
Cardinal Health, Inc.............................. 10,000 550,625
Eli Lilly & Co.................................... 20,000 1,546,250
Johnson & Johnson................................. 35,000 2,887,499
Medtronic, Inc.................................... 40,000 2,077,500
Merck & Co., Inc.................................. 47,500 3,301,249
Pfizer, Inc....................................... 60,000 2,527,500
Pharmacia Corp.................................... 25,000 1,248,438
Schering-Plough Corp.............................. 25,000 1,007,813
Warner-Lambert Co................................. 15,000 1,707,188
Watson Pharmaceuticals, Inc. (b).................. 20,000 898,750
------------
24,535,438
------------
INSURANCE (2.2%)
AFLAC, Inc........................................ 20,000 976,250
American International Group...................... 36,250 3,976,172
------------
4,952,422
------------
MACHINERY & EQUIPMENT (0.3%)
Caterpillar, Inc.................................. 15,000 591,563
------------
METALS (0.6%)
Alcoa, Inc........................................ 13,000 843,375
Nucor Corp........................................ 10,000 430,000
------------
1,273,375
------------
PAPER PRODUCTS (0.2%)
International Paper Co............................ 15,000 551,250
------------
RETAIL (6.0%)
Circuit City Stores, Inc.......................... 15,000 882,188
CVS Corp.......................................... 20,000 870,000
Home Depot, Inc................................... 32,500 1,822,031
Lowes Co.......................................... 20,000 990,000
Tandy Corp........................................ 10,000 570,000
Target Corp....................................... 15,000 998,438
TJX Cos., Inc..................................... 10,000 191,875
Wal-Mart Stores, Inc.............................. 100,000 5,537,499
Walgreen Co....................................... 50,000 1,406,250
------------
13,268,281
------------
TELECOMMUNICATIONS (12.0%)
AT&T Corp......................................... 65,000 3,034,688
Bell Atlantic Corp................................ 40,000 2,370,000
Lucent Technologies, Inc.......................... 60,000 3,731,249
MCI WorldCom, Inc. (b)............................ 70,500 3,203,343
MediaOne Group, Inc. (b).......................... 20,000 1,512,500
QUALCOMM, Inc. (b)................................ 18,000 1,951,875
SBC Communications, Inc........................... 85,000 3,724,062
Sprint Corp....................................... 25,000 1,537,500
Sprint Corp. (PCS Group) (b)...................... 35,000 1,925,000
Tellabs, Inc. (b)................................. 30,000 1,644,375
U S WEST, Inc..................................... 25,000 1,779,688
------------
26,414,280
------------
<CAPTION>
COMMON STOCKS, CONTINUED:
MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
TELECOMMUNICATIONS-EQUIPMENT (1.8%)
Nortel Networks Corp.............................. 35,000 $ 3,963,750
------------
TRANSPORTATION & SHIPPING (0.7%)
Cyclical/Transportation Select Sector SPDR Fund... 20,000 573,125
Kansas City Southern Industries, Inc.............. 15,000 1,078,125
------------
1,651,250
------------
UTILITIES (1.0%)
AES Corp. (b)..................................... 15,000 1,349,062
Southern Co....................................... 35,000 872,813
------------
2,221,875
------------
TOTAL COMMON STOCKS (Cost $180,363,162)........................ 219,718,068
------------
INVESTMENT COMPANIES (0.6%)
Goldman Sachs Financial Square Prime Money Market
Fund............................................ 610,255 610,255
Provident Institutional Temporary Investment
Fund............................................ 610,255 610,255
------------
TOTAL INVESTMENT COMPANIES
(Cost $1,220,510)............................................ 1,220,510
------------
TOTAL INVESTMENTS
(Cost $181,583,672)(a) -- 100.0%............................. 220,938,578
Liabilities in excess of other assets -- 0.0%.................. (34,393)
------------
NET ASSETS -- 100.0%........................................... $220,904,185
============
</TABLE>
---------
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax reporting
of approximately $35,477. Cost for federal tax purposes differs from value
by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $48,201,251
Unrealized depreciation... (8,881,822)
-----------
Net unrealized
appreciation............ $39,319,429
===========
</TABLE>
(b) Represents non-income producing security.
N.V. -- Naamloze Vennootschap (Dutch corporation)
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
CENTURA FUNDS, INC.
LARGE CAP EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at value (cost
$181,583,672)...................... $220,938,578
Dividends receivable................. 180,131
Receivable for capital shares
issued............................. 79,810
Receivable for investments sold...... 584,681
Prepaid expenses..................... 8,212
------------
TOTAL ASSETS....................... 221,791,412
LIABILITIES:
Payable to custodian for overdraft... $590,254
Payable for capital shares
redeemed........................... 208,298
Accrued expenses and other payables:
Investment advisory fees........... 25,424
Administration fees................ 5,448
Distribution fees.................. 10,304
Other.............................. 47,499
--------
TOTAL LIABILITIES.................. 887,227
------------
NET ASSETS:
Capital.............................. 168,116,935
Accumulated net realized gain from
investment transactions............ 13,432,344
Net unrealized appreciation from
investments........................ 39,354,906
------------
NET ASSETS........................... $220,904,185
============
Class A
Net Assets......................... $ 19,044,254
Shares............................. 1,224,220
Redemption price per share......... $ 15.56
============
Maximum Sales Charge--Class A........ 4.50%
Maximum Offering Price per share
(100%/(100%-Maximum Sales Charge)
of net asset value adjusted to
the nearest cent)................ $ 16.29
============
Class B
Net Assets......................... $ 7,702,851
Shares............................. 502,832
Offering price per share*.......... $ 15.32
============
Class C
Net Assets......................... $194,157,080
Shares............................. 12,467,210
Offering and redemption price per
share............................ $ 15.57
============
</TABLE>
---------
<TABLE>
<C> <S>
* Redemption price of Class B shares varies based on length of
time held.
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED APRIL 30, 2000
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividend income..................... $ 2,056,237
-----------
EXPENSES:
Investment advisory fees............ $1,335,602
Administration fees................. 286,202
Distribution fees--Class A.......... 71,300
Distribution fees--Class B.......... 57,721
Custodian fees...................... 47,698
Fund accounting fees................ 63,225
Transfer agent fees................. 63,070
Other............................... 104,477
----------
Total expenses before voluntary
fee reductions.................. 2,029,295
Expenses voluntarily reduced...... (35,650)
-----------
Net Expenses...................... 1,993,645
-----------
NET INVESTMENT INCOME............... 62,592
-----------
REALIZED/UNREALIZED GAIN FROM INVESTMENTS:
Net realized gain from investment
transactions...................... 19,408,209
Change in unrealized appreciation
from investments.................. 7,584,907
-----------
Net realized/unrealized gain from
investments....................... 26,993,116
-----------
Change in net assets resulting from
operations........................ $27,055,708
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
CENTURA FUNDS, INC.
LARGE CAP EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED APRIL 30,
----------------------------
2000 1999
------------ ------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income..................................... $ 62,592 $ 721,258
Net realized gains from investment transactions........... 19,408,209 7,713,037
Change in unrealized appreciation from investments........ 7,584,907 13,359,563
------------ ------------
Change in net assets resulting from operations.............. 27,055,708 21,793,858
------------ ------------
DIVIDENDS TO CLASS A SHAREHOLDERS:
From net investment income................................ (1,740) (13,064)
In excess of net investment income........................ (2,818) --
From net realized gains from investment transactions...... (274,175) (127,442)
DIVIDENDS TO CLASS B SHAREHOLDERS:
From net investment income................................ -- (11,602)
From net realized gains from investment transactions...... (116,388) (216,872)
DIVIDENDS TO CLASS C SHAREHOLDERS:
From net investment income................................ (81,818) (704,359)
In excess of net investment income........................ (132,509) --
From net realized gains from investment transactions...... (3,024,952) (7,078,053)
------------ ------------
Change in net assets from shareholder dividends............. (3,634,400) (8,151,392)
------------ ------------
Change in net assets from capital transactions.............. 51,153,334 63,961,637
------------ ------------
Change in net assets........................................ 74,574,642 77,604,103
NET ASSETS:
Beginning of period....................................... 146,329,543 68,725,440
------------ ------------
End of period............................................. $220,904,185 $146,329,543
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
CENTURA FUNDS, INC.
LARGE CAP EQUITY FUND
Selected data for a share outstanding throughout the period indicated
FINANCIAL HIGHLIGHTS, CLASS A
<TABLE>
<CAPTION>
FOR THE
FOR THE YEAR ENDED APRIL 30, PERIOD ENDED
-------------------------------- APRIL 30,
2000 1999 1998 1997 (A)
-------- -------- -------- -------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period........................ $ 13.81 $12.60 $10.91 $10.00
------- ------ ------ ------
Investment Activities
Net investment income (loss).............................. (0.02) 0.10 0.26 0.14
Net realized and unrealized gains from investments........ 2.03 2.19 2.90 0.93
------- ------ ------ ------
Total from Investment Activities.......................... 2.01 2.29 3.16 1.07
------- ------ ------ ------
Dividends
Net investment income..................................... -- (0.10) (0.26) (0.14)
In excess of net investment income........................ (0.01) -- -- --
Net realized gains........................................ (0.25) (0.98) (1.21) (0.02)
------- ------ ------ ------
Total Dividends........................................... (0.26) (1.08) (1.47) (0.16)
------- ------ ------ ------
Net Asset Value, End of Period.............................. $ 15.56 $13.81 $12.60 $10.91
======= ====== ====== ======
TOTAL RETURN (EXCLUDES SALES CHARGE)........................ 14.63% 19.58% 30.36% 10.69%(c)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)........................... $19,044 $2,335 $1,490 $ 338
Ratio of expenses to average net assets..................... 1.25% 1.14% 0.90% 0.99%(b)
Ratio of net investment income (loss) to average net
assets.................................................... (0.22%) 0.72% 2.05% 2.15%(b)
Ratio of expenses to average net assets*.................... 1.50% 1.51% 1.55% 1.65%(b)
Portfolio turnover rate**................................... 63% 114% 39% 24%
</TABLE>
<TABLE>
<C> <S>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED. IF
SUCH VOLUNTARY FEE REDUCTIONS HAD NOT OCCURRED, THE RATIO
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) ANNUALIZED.
(c) NOT ANNUALIZED.
</TABLE>
FINANCIAL HIGHLIGHTS, CLASS B
<TABLE>
<CAPTION>
FOR THE
FOR THE YEAR ENDED APRIL 30, PERIOD ENDED
------------------------------------ APRIL 30,
2000 1999 1998 1997 (A)
-------- -------- -------- -------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period........................ $13.70 $12.55 $10.88 $10.00
------ ------ ------ ------
Investment Activities
Net investment income (loss).............................. (0.11) (0.01) 0.17 0.11
Net realized and unrealized gains from investments........ 1.98 2.20 2.88 0.90
------ ------ ------ ------
Total from Investment Activities.......................... 1.87 2.19 3.05 1.01
------ ------ ------ ------
Dividends
Net investment income..................................... -- (0.06) (0.17) (0.11)
Net realized gains........................................ (0.25) (0.98) (1.21) (0.02)
------ ------ ------ ------
Total Dividends........................................... (0.25) (1.04) (1.38) (0.13)
------ ------ ------ ------
Net Asset Value, End of Period.............................. $15.32 $13.70 $12.55 $10.88
====== ====== ====== ======
TOTAL RETURN (EXCLUDES REDEMPTION CHARGE)................... 13.72% 18.76% 29.39% 10.15%(c)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)........................... $7,703 $4,138 $2,182 $ 427
Ratio of expenses to average net assets..................... 2.00% 1.90% 1.64% 1.71%(b)
Ratio of net investment income (loss) to average net
assets.................................................... (0.94%) (0.09%) 1.30% 1.52%(b)
Ratio of expenses to average net assets*.................... (d) 2.01% 2.05% 2.12%(b)
Portfolio turnover rate**................................... 63% 114% 39% 24%
</TABLE>
<TABLE>
<C> <S>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED. IF
SUCH VOLUNTARY FEE REDUCTIONS HAD NOT OCCURRED, THE RATIO
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) ANNUALIZED.
(c) NOT ANNUALIZED.
(d) THERE WERE NO WAIVERS OR REIMBURSEMENTS DURING THE PERIOD.
</TABLE>
CONTINUED
10
<PAGE>
CENTURA FUNDS, INC.
LARGE CAP EQUITY FUND
Selected data for a share outstanding throughout the period indicated
FINANCIAL HIGHLIGHTS, CLASS C
<TABLE>
<CAPTION>
FOR THE
FOR THE YEAR ENDED APRIL 30, PERIOD ENDED
---------------------------------- APRIL 30,
2000 1999 1998 1997 (A)
--------- --------- -------- -------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period........................ $ 13.80 $ 12.58 $ 10.89 $ 10.00
-------- -------- ------- -------
Investment Activities
Net investment income..................................... 0.01 0.12 0.29 0.15
Net realized and unrealized gains from investments........ 2.03 2.21 2.89 0.91
-------- -------- ------- -------
Total from Investment Activities.......................... 2.04 2.33 3.18 1.06
-------- -------- ------- -------
Dividends
Net investment income..................................... (0.01) (0.13) (0.28) (0.15)
In excess of net investment income........................ (0.01) -- -- --
Net realized gains........................................ (0.25) (0.98) (1.21) (0.02)
-------- -------- ------- -------
Total Dividends........................................... (0.27) (1.11) (1.49) (0.17)
-------- -------- ------- -------
Net Asset Value, End of Period.............................. $ 15.57 $ 13.80 $ 12.58 $ 10.89
======== ======== ======= =======
TOTAL RETURN................................................ 14.88% 19.94% 30.72% 10.65%(c)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)........................... $194,157 $139,857 $65,053 $52,486
Ratio of expenses to average net assets..................... 1.00% 0.92% 0.67% 0.75%(b)
Ratio of net investment income to average net assets........ 0.09% 0.82% 2.37% 2.45%(b)
Ratio of expenses to average net assets*.................... (d) 1.02% 1.08% 1.17%(b)
Portfolio turnover rate**................................... 63% 114% 39% 24%
</TABLE>
<TABLE>
<C> <S>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED. IF
SUCH VOLUNTARY FEE REDUCTIONS HAD NOT OCCURRED, THE RATIO
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) ANNUALIZED.
(c) NOT ANNUALIZED.
(d) THERE WERE NO WAIVERS OR REIMBURSEMENTS DURING THE PERIOD.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
CENTURA FUNDS, INC.
AS OF APRIL 30, 2000
MID CAP EQUITY FUND
GROWTH OF A $10,000 INVESTMENT
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
CLASS A CLASS A WITH LOAD (RETURN REFLECTS
<S> <C> <C> <C>
without Load maximum sales load of 4.50%) S&P MidCap 400
12/90 $10,000 $9,550 $10,000
12/91 $13,032 $12,439 $15,010
12/92 $15,060 $14,374 $16,798
12/93 $17,717 $16,911 $19,143
12/94 $16,422 $15,690 $18,459
12/95 $21,853 $20,859 $24,171
12/96 $27,096 $25,862 $28,812
12/97 $34,691 $33,130 $38,106
12/98 $41,469 $39,581 $45,390
4/99 $40,858 $38,998 $45,845
12/99 $45,898 $43,809 $52,073
4/00 $49,500 $47,246 $56,630
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
<S> <C> <C> <C>
1 YEAR 21.15% 15.72% 23.50%
5 YEAR 21.97% 20.86% 22.64%
SINCE INCEPTION 18.70% 18.11% 20.42%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
CLASS B WITH LOAD (RETURN REFLECTS THE
<S> <C> <C> <C>
Class B appropriate contingent deferred sales charge S&P
without Load (maximum deferred sales load is 5.00%)) MidCap 400*
12/90 $10,000 $9,500 $10,000
12/91 $12,982 $12,482 $15,010
12/92 $14,941 $14,541 $16,798
12/93 $17,521 $17,221 $19,143
12/94 $15,984 $15,784 $18,459
12/95 $21,288 $21,188 $24,171
12/96 $26,232 $26,232 $28,812
12/97 $33,056 $33,056 $38,106
12/98 $39,572 $39,572 $45,390
4/99 $38,896 $38,896 $45,845
12/99 $43,460 $43,460 $52,073
4/00 $46,796 $46,796 $56,630
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
<S> <C> <C> <C>
1 YEAR 20.31% 15.81% 23.50%
5 YEAR 21.11% 21.01% 22.64%
SINCE INCEPTION 17.99% 17.99% 20.42%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
CLASS C (NO LOAD) S&P MIDCAP 400*
<S> <C> <C>
12/90 $10,000 $10,000
12/91 $13,102 $15,010
12/92 $15,217 $16,798
12/93 $17,990 $19,143
12/94 $16,546 $18,459
12/95 $22,259 $24,171
12/96 $27,680 $28,812
12/97 $35,176 $38,106
12/98 $42,601 $45,390
4/99 $42,010 $45,845
12/99 $47,318 $52,073
4/00 $51,113 $56,630
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
<S> <C> <C>
1 YEAR 21.67% 23.50%
5 YEAR 22.32% 22.64%
SINCE INCEPTION 19.11% 20.42%
</TABLE>
Each chart represents a historical investment of $10,000 in the Centura Mid Cap
Equity Fund from 12/90 to 4/00, and represents the reinvestment of dividends and
capital gains in the Fund.
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 MIDCAP 400 is an unmanaged index generally representative of the
domestically traded common stocks of mid-size companies.
Investors cannot invest directly in an index, although they can invest in its
underlying securities.
The inception date for performance purposes is December 31, 1990. The quoted
performance of the Centura Mid Cap Equity Fund (formerly 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 investment objective,
policies and techniques of the Commingled Accounts were equivalent in all
material aspects to those 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, their
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.
12
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
MID CAP EQUITY FUND APRIL 30, 2000
<TABLE>
<CAPTION>
COMMON STOCKS (91.5%)
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
------------ -------------
<S> <C> <C>
AUTO PARTS (1.1%)
Lear Corp. (b).................... 16,000 $ 479,000
Meritor Automotive, Inc........... 25,000 375,000
SPX Corp. (b)..................... 5,000 549,375
------------
1,403,375
------------
BANKING & FINANCIAL SERVICES (8.0%)
Astoria Financial Corp............ 17,000 468,563
Charter One Financial, Inc........ 41,300 838,906
City National Corp................ 18,000 662,625
Compass Bancshares, Inc........... 36,000 666,000
Dime Bancorp, Inc................. 40,000 750,000
E*Trade Group, Inc. (b)........... 35,000 752,500
First Security Corp............... 42,000 593,250
First Tennessee National Corp..... 27,000 513,000
Greenpoint Financial Corp......... 25,000 465,625
Marshall & Ilsley Corp............ 25,000 1,159,374
Mercantile Bankshares Corp........ 22,000 627,000
North Fork Bancorp, Inc........... 29,000 469,438
Provident Financial Group, Inc.... 14,000 410,375
Sovereign Bancorp, Inc............ 50,000 343,750
TCF Financial Corp................ 29,000 677,875
Wilmington Trust Corp............. 14,000 645,750
Zions Bancorp..................... 13,000 539,500
------------
10,583,531
------------
BUILDING & CONSTRUCTION (0.4%)
Clayton Homes, Inc................ 50,000 475,000
------------
BUILDING PRODUCTS (1.7%)
American Standard Cos., Inc.
(b)............................. 18,000 738,000
Martin Marietta Materials, Inc.... 15,000 795,000
Southdown, Inc.................... 13,000 755,625
------------
2,288,625
------------
BUSINESS EQUIPMENT & SERVICES (1.1%)
Comdisco, Inc..................... 25,500 792,093
Manpower, Inc..................... 19,000 670,938
------------
1,463,031
------------
CHEMICALS (1.6%)
Airgas, Inc. (b).................. 30,000 176,250
Cabot Corp........................ 30,000 810,000
Cytec Industries, Inc. (b)........ 20,000 602,500
Imperial Chemical Industries PLC,
ADR............................. 15,000 521,250
------------
2,110,000
------------
COMMERCIAL SERVICES (1.5%)
ACNielsen Corp. (b)............... 18,000 415,125
Convergys Corp. (b)............... 35,000 1,540,000
------------
1,955,125
------------
COMPUTER INDUSTRY (13.7%)
Comverse Technology, Inc. (b)..... 14,000 1,248,625
Electronic Arts, Inc. (b)......... 15,000 907,500
Fiserv, Inc. (b).................. 22,500 1,033,594
<CAPTION>
COMMON STOCKS, CONTINUED:
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
------------ -------------
<S> <C> <C>
Intuit, Inc. (b).................. 28,000 $ 1,006,250
QLogic Corp. (b).................. 10,000 1,003,125
Rational Software Corp. (b)....... 17,000 1,447,125
Siebel Systems, Inc. (b).......... 34,000 4,177,749
Symantec Corp. (b)................ 5,000 312,188
Synopsys, Inc. (b)................ 17,000 714,000
VERITAS Software Corp. (b)........ 58,500 6,275,952
------------
18,126,108
------------
CONSUMER GOODS AND SERVICES (0.6%)
Jones Apparel Group, Inc. (b)..... 25,000 742,188
------------
DIVERSIFIED OPERATIONS (1.0%)
Teleflex, Inc..................... 15,000 518,438
Viad Corp......................... 31,000 786,625
------------
1,305,063
------------
DRUGS (2.8%)
Forest Laboratories, Inc.--
Class A (b)..................... 15,000 1,260,938
Medimmune, Inc. (b)............... 15,000 2,399,062
------------
3,660,000
------------
ELECTRONIC COMPONENTS/INSTRUMENTS (17.8%)
Altera Corp. (b).................. 38,000 3,885,499
American Power Conversion
Corp. (b)....................... 18,000 635,625
Arrow Electronics, Inc. (b)....... 24,000 1,051,500
Hubbell, Inc.--Class B............ 15,000 390,938
Integrated Device Technology,
Inc. (b)........................ 17,000 817,063
Jabil Circuit, Inc. (b)........... 28,000 1,146,250
Linear Technology Corp............ 55,000 3,141,875
Maxim Integrated Products, Inc.
(b)............................. 50,000 3,240,624
Novellus Systems, Inc. (b)........ 18,000 1,200,375
Sanmina Corp. (b)................. 20,000 1,201,250
SCI Systems, Inc. (b)............. 34,000 1,810,500
Symbol Technologies, Inc.......... 6,075 338,681
Teradyne, Inc. (b)................ 15,000 1,650,000
TriQuint Semiconductor, Inc.
(b)............................. 3,000 308,438
Vitesse Semiconductor Corp. (b)... 30,000 2,041,875
Waters Corp. (b).................. 9,000 855,000
------------
23,715,493
------------
ENERGY (5.0%)
Diamond Offshore Drilling, Inc.... 12,000 483,750
Grant Prideco, Inc. (b)........... 20,000 385,000
Murphy Oil Corp................... 13,000 767,000
Nabors Industries, Inc. (b)....... 25,000 985,938
Ocean Energy, Inc. (b)............ 40,000 517,500
Questar Corp...................... 28,000 526,750
Repsol-YPF SA, ADR................ 30,000 618,750
Santa Fe Snyder Corp. (b)......... 55,000 505,313
Smith International, Inc. (b)..... 14,000 1,063,999
Weatherford International, Inc.
(b)............................. 20,000 812,500
------------
6,666,500
------------
</TABLE>
CONTINUED
13
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
MID CAP EQUITY FUND APRIL 30, 2000
<TABLE>
<CAPTION>
COMMON STOCKS, CONTINUED:
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
------------ -------------
<S> <C> <C>
ENGINEERING (0.3%)
Jacobs Engineering Group, Inc.
(b)............................. 11,000 $ 344,438
------------
FOOD AND BEVERAGES (2.7%)
Dean Foods Co..................... 10,000 245,000
Flowers Industries, Inc........... 35,000 533,750
Hershey Foods Corp................ 15,000 680,625
Hormel Foods Corp................. 40,000 610,000
Nabisco Holdings Corp.--Class A... 23,000 863,937
Tyson Foods, Inc.................. 22,900 239,019
Whitman Corp...................... 30,000 343,125
------------
3,515,456
------------
HEALTH CARE (5.9%)
Chiron Corp. (b).................. 38,000 1,719,500
DENTSPLY International, Inc....... 20,000 581,250
Genzyme Corp. (b)................. 16,000 781,000
Gilead Sciences, Inc. (b)......... 10,000 541,875
Lincare Holdings, Inc. (b)........ 15,000 457,500
Millennium Pharmaceuticals, Inc.
(b)............................. 16,000 1,270,000
Stryker Corp...................... 20,000 1,440,000
Sybron International Corp. (b).... 35,000 1,089,375
------------
7,880,500
------------
HOME FURNISHINGS (0.3%)
Furniture Brands International,
Inc. (b)........................ 23,000 429,813
------------
INDUSTRIAL (1.6%)
Industrial Select Sector SPDR
Fund............................ 70,000 2,073,750
------------
INSURANCE (1.6%)
American Municipal Bond Assurance
Corp............................ 19,000 912,000
Protective Life Corp.............. 18,000 428,625
ReliaStar Financial Corp.......... 19,000 818,188
------------
2,158,813
------------
LEISURE (0.3%)
International Game Technology..... 13,825 336,984
------------
MEDIA (4.1%)
Belo (A.H.) Corp.--Class A........ 35,000 584,063
Hispanic Broadcasting Corp.--
Class A (b)..................... 8,000 808,500
Houghton Mifflin Co............... 10,000 415,625
Media General, Inc.--Class A...... 10,000 491,875
Univision Communications, Inc.
(b)............................. 22,000 2,403,500
Washington Post Co................ 1,532 747,616
------------
5,451,179
------------
METALS (0.5%)
AK Steel Holding Corp............. 37,000 409,313
Carpenter Technology Corp......... 14,000 280,875
------------
690,188
------------
<CAPTION>
COMMON STOCKS, CONTINUED:
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
------------ -------------
<S> <C> <C>
PAPER PRODUCTS (0.9%)
Bowater, Inc...................... 12,000 $ 660,000
Georgia-Pacific Timber Group...... 25,000 579,688
------------
1,239,688
------------
POLLUTION CONTROL (0.4%)
Donaldson Co., Inc................ 22,000 511,500
------------
RESTAURANTS (1.0%)
Starbucks Corp. (b)............... 45,000 1,360,547
------------
RETAIL (2.7%)
Barnes & Noble, Inc. (b).......... 12,000 222,000
BJ's Wholesale Club, Inc. (b)..... 15,000 531,563
Dollar Tree Stores, Inc. (b)...... 22,000 1,273,249
Family Dollar Stores, Inc......... 35,000 667,188
Tiffany & Co...................... 10,000 726,875
Warnaco Group, Inc.--Class A...... 20,000 212,500
------------
3,633,375
------------
TELECOMMUNICATIONS (2.3%)
Broadwing, Inc.................... 35,000 990,938
Telephone and Data Systems,
Inc............................. 20,000 2,040,000
------------
3,030,938
------------
TEXTILES & TOOLS (1.3%)
Cintas Corp....................... 30,000 1,188,750
Shaw Industries, Inc.............. 35,000 553,438
------------
1,742,188
------------
TRANSPORTATION & SHIPPING (0.9%)
Cyclical/Transportation Select
Sector SPDR Fund................ 25,000 716,406
GATX Corp......................... 14,000 500,500
------------
1,216,906
------------
UTILITIES (8.4%)
American Water Works Co, Inc...... 20,000 453,750
Energy East Corp.................. 35,000 730,625
IDACORP, Inc...................... 23,000 848,125
IPALCO Enterprise, Inc............ 39,000 797,063
LG&E Energy Corp.................. 35,000 815,938
National Fuel Gas Co.............. 10,000 474,375
NiSource, Inc..................... 50,000 925,000
Northeast Utilities............... 52,000 1,117,999
OGE Energy Corp................... 45,000 891,563
Sierra Pacific Resources.......... 44,000 665,500
St. Joseph Light & Power Co....... 25,000 523,438
TECO Energy, Inc.................. 45,000 984,374
Vectren Corp. (b)................. 6,665 134,133
Washington Gas Light Co........... 27,000 691,875
Wisconsin Energy Corp............. 50,000 1,068,749
11,122,507
------------
TOTAL COMMON STOCKS (Cost $89,388,598)............ 121,232,809
------------
</TABLE>
CONTINUED
14
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
MID CAP EQUITY FUND APRIL 30, 2000
<TABLE>
<CAPTION>
U.S. GOVERNMENT AGENCY MORTGAGES (1.5%)
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
------------ -------------
<S> <C> <C>
FEDERAL HOME LOAN BANK (1.5%)
6.02%, 6/13/00.................... $ 2,000,000 $ 1,985,284
------------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGES
(Cost $1,985,643)............................... 1,985,284
------------
<CAPTION>
INVESTMENT COMPANIES (6.7%)
<S> <C> <C>
Centura Money Market Fund......... 2,000,000 2,000,000
Goldman Sachs Financial Square
Prime Money Market Fund......... 553,070 553,070
Nasdaq 100 Share Index (b)........ 14,000 1,319,500
Provident Institutional Temporary
Investment Fund................. 553,070 553,070
S&P Mid Cap 400 Depositary
Receipt......................... 50,000 4,409,374
------------
TOTAL INVESTMENT COMPANIES
(Cost $8,218,979)............................... 8,835,014
------------
TOTAL INVESTMENTS
(Cost $99,593,220)(a) -- 99.7%.................. 132,053,107
Other assets in excess of liabilities -- 0.3%..... 434,689
------------
NET ASSETS -- 100.0% $132,487,796
============
</TABLE>
---------
<TABLE>
<C> <S>
(a) Represents cost for financial reporting and federal income
tax purposes and differs from value by net unrealized
appreciation of securities as follows:
</TABLE>
<TABLE>
<S> <C>
Unrealized appreciation... $ 38,552,871
Unrealized depreciation... (6,092,984)
--------------------------
Net unrealized
appreciation............ $ 32,459,887
==========================
</TABLE>
(b) Represents non-income producing security.
ADR -- American Depositary Receipt
SA -- Sociedad Anonimal (Spanish Corporation)
PLC -- Public Limited Company
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
CENTURA FUNDS, INC.
MID CAP EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at value (cost
$99,593,220)....................... $132,053,107
Cash................................. 606,480
Interest and dividends receivable.... 123,725
Receivable for capital shares
issued............................. 150,058
Prepaid expenses..................... 9,731
------------
TOTAL ASSETS....................... 132,943,101
LIABILITIES:
Payable for capital shares
redeemed........................... $373,068
Accrued expenses and other payables:
Investment advisory fees........... 14,907
Administration fees................ 3,194
Distribution fees.................. 19,860
Other.............................. 44,276
--------
TOTAL LIABILITIES.................. 455,305
------------
NET ASSETS:
Capital.............................. 88,673,989
Accumulated net realized gain from
investment transactions............ 11,353,920
Net unrealized appreciation from
investments........................ 32,459,887
------------
NET ASSETS........................... $132,487,796
============
Class A
Net Assets......................... $ 30,373,998
Shares............................. 2,166,361
Redemption price per share......... $ 14.02
============
Maximum Sales Charge--Class A........ 4.50%
Maimum Offering Price per share
(100%/(100%-Maximum Sales Charge)
of net asset value adjusted to
the nearest cent)................ $ 14.68
============
Class B
Net Assets......................... $ 17,208,705
Shares............................. 1,277,428
Offering price per share*.......... $ 13.47
============
Class C
Net Assets......................... $ 84,905,093
Shares............................. 6,003,974
Offering and redemption price per
share............................ $ 14.14
============
</TABLE>
---------
<TABLE>
<C> <S>
* Redemption price of Class B shares varies based on length of
time held.
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED APRIL 30, 2000
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest income....................... $ 14,206
Dividend income....................... 1,585,277
-----------
TOTAL INCOME........................ 1,599,483
EXPENSES:
Investment advisory fees.............. $966,319
Administration fees................... 207,073
Distribution fees--Class A............ 143,468
Distribution fees--Class B............ 177,981
Custodian fees........................ 34,503
Fund accounting fees.................. 48,881
Transfer agent fees................... 120,721
Other................................. 84,841
--------
Total expenses before voluntary fee
reductions........................ 1,783,787
Expenses voluntarily reduced........ (71,734)
-----------
Net Expenses........................ 1,712,053
-----------
NET INVESTMENT LOSS................... (112,570)
-----------
REALIZED/UNREALIZED GAIN FROM INVESTMENTS:
Net realized gain from investment
transactions........................ 13,802,192
Change in unrealized appreciation from
investments......................... 12,647,952
-----------
Net realized/unrealized gain from
investments......................... 26,450,144
-----------
Change in net assets resulting from
operations.......................... $26,337,574
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
CENTURA FUNDS, INC.
MID CAP EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED APRIL 30,
----------------------------
2000 1999
------------ ------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss).............................. $ (112,570) $ 640,075
Net realized gains from investment transactions........... 13,802,192 50,106,956
Change in unrealized appreciation (depreciation) from
investments............................................. 12,647,952 (39,184,235)
------------ ------------
Change in net assets resulting from operations.............. 26,337,574 11,562,796
------------ ------------
DIVIDENDS TO CLASS A SHAREHOLDERS:
From net investment income................................ -- (33,754)
From net realized gains from investment transactions...... (7,307,959) (1,648,360)
DIVIDENDS TO CLASS B SHAREHOLDERS:
From net investment income................................ -- (7,844)
From net realized gains from investment transactions...... (4,088,244) (2,269,176)
DIVIDENDS TO CLASS C SHAREHOLDERS:
From net investment income................................ -- (629,028)
In excess of net investment income........................ (18,186) --
From net realized gains from investment transactions...... (18,915,799) (18,498,984)
------------ ------------
Change in net assets from shareholder dividends............. (30,330,188) (23,087,146)
------------ ------------
Change in net assets from capital transactions.............. (35,719,712) (28,294,520)
------------ ------------
Change in net assets........................................ (39,712,326) (39,818,870)
NET ASSETS:
Beginning of year......................................... 172,200,122 212,018,992
------------ ------------
End of year............................................... $132,487,796 $172,200,122
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
CENTURA FUNDS, INC.
MID CAP EQUITY FUND
Selected data for a share outstanding throughout the period indicated
FINANCIAL HIGHLIGHTS, CLASS A
<TABLE>
<CAPTION>
FOR THE YEAR ENDED APRIL 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period........................ $ 15.33 $ 16.14 $ 15.33 $14.31 $10.70
------- ------- ------- ------ ------
Investment Activities
Net investment income (loss).............................. (0.02) 0.03 0.05 0.06 0.03
Net realized and unrealized gain from investments......... 2.69 1.15 4.92 1.58 3.67
------- ------- ------- ------ ------
Total from Investment Activities.......................... 2.67 1.18 4.97 1.64 3.70
------- ------- ------- ------ ------
Dividends
Net investment income..................................... -- (0.04) (0.05) (0.06) (0.05)
Net realized gain......................................... (3.98) (1.95) (4.11) (0.56) (0.04)
------- ------- ------- ------ ------
Total Dividends........................................... (3.98) (1.99) (4.16) (0.62) (0.09)
------- ------- ------- ------ ------
Net Asset Value, End of Period.............................. $ 14.02 $ 15.33 $ 16.14 $15.33 $14.31
======= ======= ======= ====== ======
TOTAL RETURN (EXCLUDES SALES CHARGE)........................ 21.15% 8.59% 36.55% 11.55% 34.72%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)........................... $30,374 $14,034 $13,935 $8,501 $5,740
Ratio of expenses to average net assets..................... 1.31% 1.28% 1.23% 1.30% 1.26%
Ratio of net investment income (loss) to average net
assets.................................................... (0.17%) 0.20% 0.31% 0.42% 0.27%
Ratio of expenses to average net assets*.................... 1.56% 1.53% 1.48% 1.55% (a)
Portfolio turnover rate**................................... 61% 142% 49% 67% 46%
</TABLE>
<TABLE>
<C> <S>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED. IF
SUCH VOLUNTARY FEE REDUCTIONS HAD NOT OCCURRED, THE RATIO
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) THERE WERE NO WAIVERS OR REIMBURSEMENTS DURING THE PERIOD.
</TABLE>
FINANCIAL HIGHLIGHTS, CLASS B
<TABLE>
<CAPTION>
FOR THE YEAR ENDED APRIL 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period........................ $ 14.97 $ 15.88 $ 15.20 $14.24 $10.69
------- ------- ------- ------ ------
Investment Activities
Net investment loss....................................... (0.13) (0.07) (0.05) (0.04) (0.06)
Net realized and unrealized gain from investments......... 2.61 1.12 4.84 1.57 3.65
------- ------- ------- ------ ------
Total from Investment Activities.......................... 2.48 1.05 4.79 1.53 3.59
------- ------- ------- ------ ------
Dividends
Net investment loss....................................... -- (0.01) -- (0.01) --
Net realized gain......................................... (3.98) (1.95) (4.11) (0.56) (0.04)
------- ------- ------- ------ ------
Total Dividends........................................... (3.98) (1.96) (4.11) (0.57) (0.04)
------- ------- ------- ------ ------
Net Asset Value, End of Period.............................. $ 13.47 $ 14.97 $ 15.88 $15.20 $14.24
======= ======= ======= ====== ======
TOTAL RETURN (EXCLUDES REDEMPTION CHARGE)................... 20.31% 7.83% 35.55% 10.78% 33.73%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)........................... $17,209 $19,269 $18,225 $9,761 $6,194
Ratio of expenses to average net assets..................... 2.06% 2.04% 1.98% 2.05% 2.02%
Ratio of net investment loss to average net assets.......... (0.90%) (0.55%) (0.43%) (0.33%) (0.48%)
Portfolio turnover rate**................................... 61% 142% 49% 67% 46%
</TABLE>
<TABLE>
<C> <S>
** PORTFOLIO TURNOVER IS CALCULATED ON THE BASIS OF THE FUND AS
A WHOLE WITHOUT DISTINGUISHING BETWEEN THE CLASSES OF SHARES
ISSUED.
</TABLE>
CONTINUED
18
<PAGE>
CENTURA FUNDS, INC.
MID CAP EQUITY FUND
Selected data for a share outstanding throughout the period indicated
FINANCIAL HIGHLIGHTS, CLASS C
<TABLE>
<CAPTION>
FOR THE YEAR ENDED APRIL 30,
------------------------------------------------------------
2000 1999 1998 1997 1996
-------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period........................ $ 15.37 $ 16.16 $ 15.33 $ 14.31 $ 10.70
------- -------- -------- -------- --------
Investment Activities
Net investment income..................................... 0.01 0.07 0.09 0.09 0.07
Net realized and unrealized gain from investments......... 2.74 1.15 4.94 1.58 3.65
------- -------- -------- -------- --------
Total from Investment Activities.......................... 2.75 1.22 5.03 1.67 3.72
------- -------- -------- -------- --------
Dividends
Net investment income..................................... -- (0.06) (0.09) (0.09) (0.07)
In excess of net investment income........................ (a) -- -- -- --
Net realized gain......................................... (3.98) (1.95) (4.11) (0.56) (0.04)
------- -------- -------- -------- --------
Total Dividends........................................... (3.98) (2.01) (4.20) (0.65) (0.11)
------- -------- -------- -------- --------
Net Asset Value, End of Period.............................. $ 14.14 $ 15.37 $ 16.16 $ 15.33 $ 14.31
======= ======== ======== ======== ========
TOTAL RETURN................................................ 21.67% 8.93% 36.89% 11.82% 34.97%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)........................... $84,905 $138,897 $179,859 $147,213 $133,714
Ratio of expenses to average net assets..................... 1.06% 1.03% 1.00% 1.05% 1.04%
Ratio of net investment income to average net assets........ 0.10% 0.46% 0.56% 0.67% 0.55%
Portfolio turnover rate**................................... 61% 142% 49% 67% 46%
</TABLE>
<TABLE>
<C> <S>
** PORTFOLIO TURNOVER IS CALCULATED ON THE BASIS OF THE FUND AS
A WHOLE WITHOUT DISTINGUISHING BETWEEN THE CLASSES OF SHARES
ISSUED.
(a) LESS THAN $0.01 PER SHARE.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
CENTURA FUNDS, INC.
AS OF APRIL 30, 2000
SMALL CAP EQUITY FUND
GROWTH OF A $10,000 INVESTMENT
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
CLASS A WITH LOAD
<S> <C> <C> <C> <C>
Class A (Return reflects maximum Russell 2000 S&P SmallCap
without Load sales load of 4.50%) Index* 600*
1/95 $10,000 $9,550 $10,000 $10,000
12/95 $12,048 $11,449 $12,844 $12,996
12/96 $14,755 $14,083 $14,963 $15,767
12/97 $19,426 $18,542 $18,308 $19,801
12/98 $21,155 $20,192 $17,842 $19,543
4/99 $20,730 $19,787 $18,386 $18,960
12/99 $23,358 $22,295 $21,635 $21,967
4/00 $24,870 $23,738 $21,773 $22,846
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
<S> <C> <C> <C> <C>
1 YEAR 19.97% 14.55% 18.42% 20.50%
5 YEAR 18.19% 17.11% 15.28% 16.37%
SINCE INCEPTION 18.66% 17.62% 15.71% 16.76%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
CLASS B WITH LOAD (RETURN REFLECTS THE
<S> <C> <C> <C> <C>
Class B appropriate contingent deferred sales charge Russell 2000 S&P SmallCap
without Load (maximum deferred sales load is 5.00%)) Index* 600*
1/95 $10,000 $9,500 $10,000 $10,000
12/95 $11,997 $11,497 $12,844 $12,996
12/96 $14,619 $14,219 $14,963 $15,767
12/97 $19,108 $18,808 $18,308 $19,801
12/98 $20,645 $20,445 $17,842 $19,543
4/99 $20,177 $20,077 $18,386 $18,960
12/99 $22,626 $22,626 $21,635 $21,967
4/00 $24,028 $24,028 $21,773 $22,846
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
<S> <C> <C> <C> <C>
1 YEAR 19.09% 14.22% 18.42% 20.50%
5 YEAR 17.39% 17.29% 15.28% 16.37%
SINCE INCEPTION 17.89% 17.89% 15.71% 16.76%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
CLASS C (NO LOAD) RUSSELL 2000 INDEX* S&P SMALLCAP 600*
<S> <C> <C> <C>
1/95 $10,000 $10,000 $10,000
12/95 $12,099 $12,844 $12,996
12/96 $14,894 $14,963 $15,767
12/97 $19,656 $18,308 $19,801
12/98 $21,456 $17,842 $19,543
4/99 $21,043 $18,386 $18,960
12/99 $23,752 $21,635 $21,967
4/00 $25,302 $21,773 $22,846
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
<S> <C> <C> <C>
1 YEAR 20.24% 18.42% 20.50%
5 YEAR 18.57% 15.28% 16.37%
SINCE INCEPTION 19.04% 15.71% 16.76%
</TABLE>
Each chart represents a historical investment of $10,000 in the Centura Small
Cap Equity Fund from 1/95 to 4/00, and represents the reinvestment of dividends
and capital gains in the Fund.
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 SMALLCAP 600 INDEX is an unmanaged index generally representative of
the domestic stock market of small-sized companies. 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.
Investors cannot invest directly in an index, although they can invest in its
underlying securities.
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 Small Cap Equity Fund (formerly 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
investment objective, policies and techniques of the Commingled Accounts were
equivalent in all material aspects to those 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, their 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.
20
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
SMALL CAP EQUITY FUND APRIL 30, 2000
<TABLE>
<CAPTION>
COMMON STOCKS (95.8%)
MARKET
SHARES VALUE
------------ -------------
<S> <C> <C>
ADVERTISING (2.0%)
Snyder Communications, Inc. (b)... 10,000 $ 237,500
True North Communications, Inc.... 10,000 411,875
------------
649,375
------------
AIRLINES (0.8%)
SkyWest, Inc...................... 6,000 252,750
------------
APPAREL (0.2%)
Wolverine World Wide, Inc......... 5,000 60,000
------------
AUTO PARTS (0.4%)
Tower Automotive, Inc. (b)........ 9,000 140,625
------------
BANKING & FINANCIAL SERVICES (9.9%)
AmeriCredit Corp. (b)............. 15,000 280,313
ChoicePoint, Inc. (b)............. 7,000 266,000
Commerce Bancorp, Inc............. 5,000 198,438
Cullen/Frost Bankers, Inc......... 10,000 246,875
Downey Financial Corp............. 6,000 179,250
Eaton Vance Corp.................. 7,000 296,187
Morgan Keegan, Inc................ 10,000 159,375
National Discount Brokers Group,
Inc. (b)........................ 4,000 116,750
Radian Group, Inc................. 4,000 203,750
Raymond James Financial, Inc...... 12,000 241,500
SEI Investment Co................. 3,000 358,124
Silicon Valley Bancshares (b)..... 4,000 247,000
U.S. Trust Corp................... 2,500 384,687
------------
3,178,249
------------
BUILDING & CONSTRUCTION (1.9%)
Elcor Corp........................ 8,000 254,500
Florida Rock Industries, Inc...... 4,000 129,500
Simpson Manufacturing Co., Inc.
(b)............................. 5,000 226,250
------------
610,250
------------
BUSINESS EQUIPMENT & SERVICES (6.5%)
American Management Systems, Inc.
(b)............................. 8,000 296,000
Brady Corp........................ 5,000 146,875
Catalina Marketing Corp. (b)...... 4,000 405,000
Copart, Inc. (b).................. 10,000 172,500
Insight Enterprises, Inc. (b)..... 8,000 334,500
Jack Henry & Associates, Inc...... 8,000 316,000
Pre-Paid Legal Services, Inc.
(b)............................. 8,000 256,000
Profit Recovery Group
International, Inc. (b)......... 10,000 175,625
------------
2,102,500
------------
CHEMICALS (1.7%)
Cambrex Corp...................... 5,000 205,000
Geon Co........................... 2,000 43,750
MacDermid, Inc.................... 5,000 117,188
OM Group, Inc..................... 4,000 184,000
------------
549,938
------------
<CAPTION>
COMMON STOCKS, CONTINUED:
MARKET
SHARES VALUE
------------ -------------
<S> <C> <C>
COMMERCIAL SERVICES (2.6%)
CDI Corp. (b)..................... 3,000 $ 67,500
Interim Services, Inc. (b)........ 10,000 171,250
Labor Ready, Inc. (b)............. 12,000 108,750
MAXIMUS, Inc. (b)................. 5,000 117,813
Plexus Corp. (b).................. 5,000 383,125
------------
848,438
------------
COMPUTER INDUSTRY (8.9%)
Apex, Inc. (b).................... 4,000 118,250
BARRA, Inc. (b)................... 5,000 210,625
CIBER, Inc. (b)................... 11,000 198,688
Gerber Scientific, Inc............ 8,852 122,822
Harbinger Corp. (b)............... 8,500 160,438
MarchFirst, Inc. (b).............. 15,000 319,687
Mercury Computer Systems, Inc.
(b)............................. 4,000 153,750
MICROS Systems, Inc. (b).......... 4,143 166,756
National Computer Systems, Inc.... 7,000 360,062
National Instruments Corp. (b).... 9,424 459,419
Progress Software Corp. (b)....... 10,000 200,000
RadiSys Corp. (b)................. 3,000 124,125
Remedy Corp. (b).................. 5,000 265,625
------------
2,860,247
------------
CONSUMER GOODS AND SERVICES (0.8%)
Tredegar Corp..................... 10,000 258,125
------------
DISTRIBUTION/WHOLESALE (0.2%)
Hughes Supply, Inc................ 5,000 76,250
------------
ELECTRONIC COMPONENTS/INSTRUMENTS (13.8%)
Alpha Industries, Inc. (b)........ 4,000 208,000
Black Box Corp. (b)............... 4,500 346,219
Burr-Brown Corp. (b).............. 9,000 613,124
Dallas Semiconductor Corp......... 10,000 429,375
Electro Scientific Industries,
Inc. (b)........................ 5,000 315,313
Harman International Industries,
Inc............................. 5,000 326,875
International Rectifier Corp.
(b)............................. 8,000 393,000
KEMET Corp. (b)................... 7,000 521,500
Kulicke and Soffa Industries, Inc.
(b)............................. 5,000 391,563
Lattice Semiconductor Corp. (b)... 8,000 538,999
Technitrol, Inc................... 3,000 204,000
Vicor Corp. (b)................... 5,000 130,000
------------
4,417,968
------------
ENERGY (4.5%)
Atwood Oceanics, Inc. (b)......... 4,000 242,500
Barrett Resources Corp. (b)....... 7,000 222,250
Newfield Exploration Co. (b)...... 8,000 325,000
Pogo Producing Co................. 12,000 307,500
Vintage Petroleum, Inc............ 17,500 347,813
------------
1,445,063
------------
FOOD AND BEVERAGES (1.6%)
Canandaigua Brands, Inc.--
Class A (b)..................... 5,000 251,875
Corn Products International,
Inc............................. 3,000 72,000
Hain Food Group, Inc. (b)......... 4,000 107,250
</TABLE>
CONTINUED
21
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
SMALL CAP EQUITY FUND APRIL 30, 2000
<TABLE>
<CAPTION>
COMMON STOCKS, CONTINUED:
MARKET
SHARES VALUE
------------ -------------
<S> <C> <C>
Smithfield Foods, Inc. (b)........ 3,500 $ 74,594
------------
505,719
------------
HEALTH CARE (14.2%)
Alpharma, Inc..................... 7,000 270,375
Barr Laboratories, Inc. (b)....... 7,000 302,313
Bindley Western Industries,
Inc............................. 10,000 174,375
Bio-Technology General Corp.
(b)............................. 15,000 210,938
Biomatrix, Inc. (b)............... 6,000 114,375
Enzo Biochem, Inc. (b)............ 3,000 121,500
IDEC Pharmaceuticals Corp. (b).... 5,000 319,999
IDEXX Laboratories, Inc. (b)...... 12,000 314,999
Jones Pharma, Inc................. 10,500 302,531
Liposome Co., Inc. (b)............ 8,000 140,000
Medicis Pharmaceutical Corp.
(b)............................. 5,000 218,750
Noven Pharmaceuticals, Inc. (b)... 7,000 82,250
Orthodontic Centers of America,
Inc. (b)........................ 12,000 254,250
Patterson Dental Co. (b).......... 7,000 336,874
Priority Healthcare Corp. (b)..... 4,500 249,188
Renal Care Group, Inc. (b)........ 9,000 200,813
ResMed, Inc. (b).................. 6,000 204,000
Summit Technology, Inc. (b)....... 10,000 88,750
Techne Corp. (b).................. 1,900 135,138
Theragenics Corp. (b)............. 15,000 149,063
Universal Health Services, Inc.
(b)............................. 6,000 328,499
------------
4,518,980
------------
HOME FURNISHINGS (0.9%)
Ethan Allen Interiors, Inc........ 5,000 133,437
La-Z-Boy, Inc..................... 5,000 78,438
Salton, Inc. (b).................. 2,000 85,875
------------
297,750
------------
INDUSTRIAL GOODS & SERVICES (1.5%)
Dycom Industries, Inc. (b)........ 9,000 468,000
------------
INSURANCE (1.2%)
Arthur J. Gallagher & Co.......... 4,000 149,000
E.W. Blanch Holdings, Inc......... 2,000 44,500
Hilb, Rogal & Hamilton Co......... 7,000 198,188
------------
391,688
------------
LEISURE (1.1%)
Aztar Corp. (b)................... 20,000 238,750
Polaris Industries, Inc........... 4,000 122,500
------------
361,250
------------
MACHINERY & EQUIPMENT (2.8%)
Cognex Corp. (b).................. 5,000 284,375
Graco, Inc........................ 5,000 169,375
Manitowoc Co., Inc................ 7,000 232,313
Roper Industries, Inc............. 7,000 220,500
------------
906,563
------------
METALS (1.3%)
Mueller Industries, Inc. (b)...... 3,000 98,813
<CAPTION>
COMMON STOCKS, CONTINUED:
MARKET
SHARES VALUE
------------ -------------
<S> <C> <C>
Reliance Steel & Aluminum Co...... 5,500 $ 126,500
Stillwater Mining Co. (b)......... 7,000 196,000
------------
421,313
------------
REAL ESTATE (0.2%)
Ryland Group, Inc................. 3,000 60,375
------------
RESTAURANTS (0.6%)
CEC Entertainment, Inc. (b)....... 2,000 60,000
Ruby Tuesday, Inc................. 6,811 142,605
------------
202,605
------------
RETAIL (2.2%)
Fossil, Inc. (b).................. 8,000 166,000
Men's Wearhouse, Inc. (b)......... 8,000 171,500
Regis Corp........................ 8,000 93,500
Timberland Co. (b)................ 4,000 277,500
------------
708,500
------------
TECHNOLOGY (6.0%)
C-Cube Microsystems, Inc. (b)..... 6,000 385,500
CTS Corp.......................... 4,500 283,781
Mercury Interactive Corp. (b)..... 8,000 720,000
Xircom, Inc. (b).................. 5,000 197,188
Zebra Technologies Corp.--
Class A (b)..................... 6,000 342,000
------------
1,928,469
------------
TELECOMMUNICATIONS-EQUIPMENT (4.5%)
C-COR.net Corp. (b)............... 7,000 273,875
CommScope, Inc. (b)............... 5,000 237,500
Digital Microwave Corp. (b)....... 10,000 369,375
Inter-Tel, Inc.................... 4,000 81,000
Plantronics, Inc. (b)............. 4,000 354,000
TALK.com, Inc. (b)................ 12,000 117,000
------------
1,432,750
------------
TRANSPORTATION & SHIPPING (1.7%)
Expeditors International of
Washington, Inc................. 9,300 397,575
USFreightways Corp................ 3,000 139,875
------------
537,450
------------
UTILITIES (1.8%)
Energen Corp...................... 11,000 201,438
New Jersey Resources Corp......... 4,000 161,000
NorthWestern Corp................. 3,000 69,000
Piedmont Natural Gas Co., Inc..... 5,000 141,250
------------
572,688
------------
TOTAL COMMON STOCKS (Cost $25,927,575)............ 30,763,878
------------
INVESTMENT COMPANIES (4.0%)
Centura Money Market Fund......... 184,003 184,003
Goldman Sachs Financial Square
Prime Money Market Fund......... 544,993 544,993
</TABLE>
CONTINUED
22
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
SMALL CAP EQUITY FUND APRIL 30, 2000
<TABLE>
<CAPTION>
COMMON STOCKS, CONTINUED:
MARKET
SHARES VALUE
------------ -------------
<S> <C> <C>
Provident Institutional Temporary
Investment Fund................. 544,993 $ 544,993
------------
TOTAL INVESTMENT COMPANIES
(Cost $1,273,989)............................... 1,273,989
------------
TOTAL INVESTMENTS
(Cost $27,201,564)(a) -- 99.8%.................. 32,037,867
Other assets in excess of liabilities -- 0.2%..... 66,365
------------
NET ASSETS -- 100.0%.............................. $ 32,104,232
============
</TABLE>
---------
<TABLE>
<C> <S>
(a) Represents cost for financial reporting purposes and differs
from cost basis for federal income tax purposes by the
amount of losses recognized for financial reporting purposes
in excess of federal income tax reporting of approximately
$97,604. Cost for federal tax purposes differs from value by
net unrealized appreciation of securities as follows:
</TABLE>
<TABLE>
<S> <C>
Unrealized appreciation... $ 6,591,483
Unrealized depreciation... (1,852,784)
--------------------------
Net unrealized
appreciation............ $ 4,738,699
==========================
</TABLE>
<TABLE>
<C> <S>
(b) Represents non-income producing security.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
23
<PAGE>
CENTURA FUNDS, INC.
SMALL CAP EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at value (cost
$27,201,564)........................ $32,037,867
Interest and dividends receivable..... 8,569
Receivable for capital shares
issued.............................. 31,165
Receivable for investments sold....... 315,000
Deferred organization costs........... 5,984
Prepaid expenses...................... 7,220
-----------
TOTAL ASSETS........................ 32,405,805
LIABILITIES:
Payable to custodian for overdraft.... $ 43,508
Payable for investments purchased..... 202,980
Payable for capital shares redeemed... 24,385
Accrued expenses and other payables:
Investment advisory fees............ 3,588
Administration fees................. 769
Distribution fees................... 5,018
Other............................... 21,325
--------
TOTAL LIABILITIES................... 301,573
-----------
NET ASSETS:
Capital............................... 26,832,936
Accumulated net realized gain from
investment transactions............. 434,993
Net unrealized appreciation from
investments......................... 4,836,303
-----------
NET ASSETS............................ $32,104,232
===========
Class A
Net Assets.......................... $ 6,880,738
Shares.............................. 550,417
Redemption price per share.......... $ 12.50
===========
Maximum Sales Charge--Class A......... 4.50%
Maximum Offering Price per share
(100%/(100%-Maximum Sales Charge)
of net asset value adjusted to the
nearest cent)..................... $ 13.09
===========
Class B
Net Assets.......................... $ 4,578,238
Shares.............................. 376,189
Offering price per share*........... $ 12.17
===========
Class C
Net Assets.......................... $20,645,256
Shares.............................. 1,641,902
Offering and redemption price per
share............................. $ 12.57
===========
</TABLE>
---------
<TABLE>
<C> <S>
* Redemption price of Class B shares varies based on length of
time held.
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED APRIL 30, 2000
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest income........................ $ 8,117
Dividend income........................ 229,900
----------
TOTAL INCOME......................... 238,017
EXPENSES:
Investment advisory fees............... $244,052
Administration fees.................... 52,297
Distribution fees--Class A............. 30,445
Distribution fees--Class B............. 48,410
Custodian fees......................... 8,714
Fund accounting fees................... 36,540
Transfer agent fees.................... 41,335
Other.................................. 37,352
--------
Total expenses before voluntary fee
reductions......................... 499,145
Expenses voluntarily reduced......... (15,223)
----------
Net Expenses......................... 483,922
----------
NET INVESTMENT LOSS.................... (245,905)
----------
REALIZED/UNREALIZED GAIN FROM INVESTMENTS:
Net realized gain from investment
transactions......................... 5,554,171
Change in unrealized appreciation from
investments.......................... 990,897
----------
Net realized/unrealized gain from
investments.......................... 6,545,068
----------
Change in net assets resulting from
operations........................... $6,299,163
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
24
<PAGE>
CENTURA FUNDS, INC.
SMALL CAP EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED APRIL 30,
----------------------------
2000 1999
------------ ------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment loss....................................... $ (245,905) $ (128,925)
Net realized gains from investment transactions........... 5,554,171 979,331
Change in unrealized appreciation (depreciation) from
investments............................................. 990,897 (3,995,280)
----------- -----------
Change in net assets resulting from operations.............. 6,299,163 (3,144,874)
----------- -----------
DIVIDENDS TO CLASS A SHAREHOLDERS:
From net realized gains from investment transactions...... (1,142,166) (264,286)
DIVIDENDS TO CLASS B SHAREHOLDERS:
From net realized gains from investment transactions...... (831,369) (427,621)
DIVIDENDS TO CLASS C SHAREHOLDERS:
From net realized gains from investment transactions...... (3,669,115) (2,390,898)
----------- -----------
Change in net assets from shareholder dividends............. (5,642,650) (3,082,805)
----------- -----------
Change in net assets from capital transactions.............. (6,763,844) 4,919,060
----------- -----------
Change in net assets........................................ (6,107,331) (1,308,619)
NET ASSETS:
Beginning of period....................................... 38,211,563 39,520,182
----------- -----------
End of period............................................. $32,104,232 $38,211,563
=========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
25
<PAGE>
CENTURA FUNDS, INC.
SMALL CAP EQUITY FUND
Selected data for a share outstanding throughout the period indicated
FINANCIAL HIGHLIGHTS, CLASS A
<TABLE>
<CAPTION>
FOR THE
FOR THE YEAR PERIOD ENDED
ENDED APRIL 30, APRIL 30,
-------------------- ------------
2000 1999 1998 (A)
-------- -------- ------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period........................ $12.69 $14.99 $10.00
------ ------ ------
Investment Activities
Net investment income (loss).............................. (0.09) (0.06) 0.03
Net realized and unrealized gains (losses) from
investments............................................. 2.31 (1.20) 5.87
------ ------ ------
Total from Investment Activities.......................... 2.22 (1.26) 5.90
------ ------ ------
Dividends
Net investment income..................................... -- -- (0.03)
In excess of net investment income........................ -- -- (0.01)
Net realized gains........................................ (2.41) (1.04) (0.87)
------ ------ ------
Total Dividends........................................... (2.41) (1.04) (0.91)
------ ------ ------
Net Asset Value, End of Period.............................. $12.50 $12.69 $14.99
====== ====== ======
TOTAL RETURN (EXCLUDES SALES CHARGE)........................ 19.97% (8.05%) 60.75%(c)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)........................... $6,881 $3,046 $3,000
Ratio of expenses to average net assets..................... 1.46% 1.48% 1.46%(b)
Ratio of net investment income (loss) to average net
assets.................................................... (0.80%) (0.43%) 0.09%(b)
Ratio of expenses to average net assets*.................... 1.71% 1.73% 1.82%(b)
Portfolio turnover rate**................................... 258% 130% 71%
</TABLE>
<TABLE>
<C> <S>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED
AND/OR REIMBURSED. IF SUCH VOLUNTARY FEE REDUCTIONS AND/OR
REIMBURSEMENTS HAD NOT OCCURRED, THE RATIO 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) ANNUALIZED.
(c) NOT ANNUALIZED.
</TABLE>
FINANCIAL HIGHLIGHTS, CLASS B
<TABLE>
<CAPTION>
FOR THE
FOR THE YEAR PERIOD ENDED
ENDED APRIL 30, APRIL 30,
-------------------- ------------
2000 1999 1998 (A)
-------- -------- ------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period........................ $12.50 $14.90 $10.00
------ ------ ------
Investment Activities
Net investment loss....................................... (0.20) (0.14) (0.03)
Net realized and unrealized gains (losses) from
investments............................................. 2.28 (1.22) 5.82
------ ------ ------
Total from Investment Activities.......................... 2.08 (1.36) 5.79
------ ------ ------
Dividends
In excess of net investment income........................ -- -- (0.02)
Net realized gains........................................ (2.41) (1.04) (0.87)
------ ------ ------
Total Dividends........................................... (2.41) (1.04) (0.89)
------ ------ ------
Net Asset Value, End of Period.............................. $12.17 $12.50 $14.90
====== ====== ======
TOTAL RETURN (EXCLUDES REDEMPTION CHARGE)................... 19.09% (8.79%) 59.50%(d)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)........................... $4,578 $5,108 $4,938
Ratio of expenses to average net assets..................... 2.21% 2.23% 2.21%(c)
Ratio of net investment loss to average net assets.......... (1.53%) (1.19%) (0.66%)(c)
Ratio of expenses to average net assets*.................... (b) (b) 2.32%(c)
Portfolio turnover rate**................................... 258% 130% 71%
</TABLE>
<TABLE>
<C> <S>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED
AND/OR REIMBURSED. IF SUCH VOLUNTARY FEE REDUCTIONS AND/OR
REIMBURSEMENTS HAD NOT OCCURRED, THE RATIO 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) THERE WERE NO WAIVERS OR REIMBURSEMENTS DURING THE PERIOD.
(c) ANNUALIZED.
(d) NOT ANNUALIZED.
</TABLE>
CONTINUED
26
<PAGE>
CENTURA FUNDS, INC.
SMALL CAP EQUITY FUND
Selected data for a share outstanding throughout the period indicated
FINANCIAL HIGHLIGHTS, CLASS C
<TABLE>
<CAPTION>
FOR THE
FOR THE YEAR PERIOD ENDED
ENDED APRIL 30, APRIL 30,
-------------------- ------------
2000 1999 1998 (A)
-------- -------- ------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period........................ $ 12.72 $ 14.99 $ 10.00
------- ------- -------
Investment Activities
Net investment income (loss).............................. (0.07) (0.02) 0.06
Net realized and unrealized gain (loss) from
investments............................................. 2.33 (1.21) 5.86
------- ------- -------
Total from Investment Activities.......................... 2.26 (1.23) 5.92
------- ------- -------
Dividends
Net investment income..................................... -- -- (0.06)
Net realized gain......................................... (2.41) (1.04) (0.87)
------- ------- -------
Total Dividends........................................... (2.41) (1.04) (0.93)
------- ------- -------
Net Asset Value, End of Period.............................. $ 12.57 $ 12.72 $ 14.99
======= ======= =======
TOTAL RETURN................................................ 20.24% (7.84%) 60.98%(d)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)........................... $20,645 $30,057 $31,583
Ratio of expenses to average net assets..................... 1.21% 1.23% 1.16%(c)
Ratio of net investment income (loss) to average net
assets.................................................... (0.51%) (0.19%) 0.46%(c)
Ratio of expenses to average net assets*.................... (b) (b) 1.27%(c)
Portfolio turnover rate**................................... 258% 130% 71%
</TABLE>
<TABLE>
<C> <S>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED
AND/OR REIMBURSED. IF SUCH VOLUNTARY FEE REDUCTIONS AND/OR
REIMBURSEMENTS HAD NOT OCCURRED, THE RATIO 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) THERE WERE NO WAIVERS OR REIMBURSEMENTS DURING THE PERIOD.
(c) ANNUALIZED.
(d) NOT ANNUALIZED.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
27
<PAGE>
CENTURA FUNDS, INC.
AS OF APRIL 30, 2000
GOVERNMENT INCOME FUND
GROWTH OF A $10,000 INVESTMENT
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
CLASS A
<S> <C> <C> <C> <C>
with Load Lehman Brothers Lipper
(Return
reflects Intermediate Short-Intermediate
Class A maximum sales Government U.S. Government
without Load load of 2.75%) Bond Index* Average*
12/90 $10,000 $9,727 $10,000 $10,000
12/91 $11,111 $10,808 $11,409 $11,322
12/92 $11,722 $11,401 $12,200 $12,008
12/93 $12,479 $12,138 $13,198 $12,867
12/94 $12,240 $11,906 $12,968 $12,645
12/95 $13,856 $13,478 $14,838 $14,262
12/96 $14,202 $13,814 $15,440 $14,850
12/97 $15,206 $14,790 $16,632 $15,884
12/98 $16,300 $15,855 $18,041 $16,957
12/99 $16,404 $15,956 $18,131 $17,137
4/00 $16,595 $16,142 $18,420 $17,332
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
<S> <C> <C> <C> <C>
1 YEAR 1.73% (1.03)% 2.10% 1.48%
5 YEAR 5.30% 4.71% 6.14% 5.30%
SINCE INCEPTION 5.58% 5.27% 6.76% 6.07%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
CLASS B
<S> <C> <C> <C> <C>
with Load
(Return reflects the
appropriate contingent
deferred sales charge Lehman Brothers Lipper
(maximum deferred Intermediate Short-Intermediate
Class B sales load Government U.S. Government
without Load is 3.00%)) Bond Index* Average*
12/90 $10,000 $9,700 $10,000 $10,000
12/91 $11,056 $10,756 $11,409 $11,322
12/92 $11,609 $11,309 $12,200 $12,008
12/93 $12,293 $11,996 $13,198 $12,867
12/94 $11,984 $11,784 $12,968 $12,645
12/95 $13,464 $13,367 $14,838 $14,262
12/96 $13,709 $13,709 $15,440 $14,850
12/97 $14,591 $14,591 $16,632 $15,884
12/98 $15,580 $15,580 $18,041 $16,957
12/99 $15,602 $15,602 $18,131 $17,137
4/00 $15,757 $15,757 $18,420 $17,332
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
<S> <C> <C> <C> <C>
1 YEAR 1.23% (1.66)% 2.10% 1.48%
5 YEAR 4.71% 4.54% 6.14% 5.30%
SINCE INCEPTION 5.00% 5.00% 6.76% 6.07%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEHMAN BROTHERS LIPPER
<S> <C> <C> <C>
Intermediate Short-Intermediate
Class C Government U.S. Government
(No Load) Bond Index* Average*
12/90 $10,000 $10,000 $10,000
12/91 $11,154 $11,409 $11,322
12/92 $11,836 $12,200 $12,008
12/93 $12,655 $13,198 $12,867
12/94 $12,457 $12,968 $12,645
12/95 $14,137 $14,838 $14,262
12/96 $14,540 $15,440 $14,850
12/97 $15,592 $16,632 $15,884
12/98 $16,772 $18,041 $16,957
12/99 $16,922 $18,131 $17,137
4/00 $17,115 $18,420 $17,332
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
<S> <C> <C> <C>
1 YEAR 1.99% 2.10% 1.48%
5 YEAR 5.56% 6.14% 5.30%
SINCE INCEPTION 5.93% 6.76% 6.07%
</TABLE>
Each chart represents a historical investment of $10,000 in the Centura
Government Income Fund from 12/90 to 4/00, and represents the reinvestment of
dividends and capital gains in the Fund.
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 INTERMEDIATE GOVERNMENT BOND INDEX is an unmanaged index
generally representative of the Intermediate 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. Inc. that fall into this category. Lipper is an independent mutual
fund performance monitor whose results are based on total return and do not
reflect a sales charge.
Investors cannot invest directly in an index, although they can invest in its
underlying securities.
The inception date for performance purposes is December 31, 1990. The quoted
performance of the Centura Government Income Fund (formerly 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
investment objective, policies and techniques of the Commingled Accounts were
equivalent in all material aspects to those 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, their 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.
28
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
GOVERNMENT INCOME FUND APRIL 30, 2000
<TABLE>
<CAPTION>
U.S. GOVERNMENT AGENCY OBLIGATIONS (92.5%)
PRINCIPAL MARKET
AMOUNT VALUE
----------- ------------
<S> <C> <C>
FEDERAL HOME LOAN BANK (8.2%)
5.88%, 5/1/00....................... $2,000,000 $ 1,999,673
6.75%, 5/1/02....................... 2,000,000 1,986,180
-----------
3,985,853
-----------
FEDERAL HOME LOAN MORTGAGE CORPORATION (17.9%)
6.25%, 7/15/04...................... 3,000,000 2,891,250
6.63%, 9/15/09...................... 6,000,000 5,722,500
-----------
8,613,750
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (43.7%)
6.50%, 11/1/07, Pool #251509........ 2,350,627 2,276,417
6.00%, 6/1/08, Pool #418487......... 5,046,602 4,851,811
6.00%, 8/1/08, Pool #251904......... 304,392 290,122
5.50%, 12/1/08, Pool #252243........ 7,362,871 6,909,202
5.50%, 2/1/09, Pool #252317......... 4,223,927 3,963,667
6.50%, 4/29/09...................... 3,000,000 2,778,720
-----------
21,069,939
-----------
STUDENT LOAN MARKETING ASSOCIATION (22.7%)
6.23%, 4/4/03 MTN................... 3,000,000 2,998,620
6.49%, 1/25/07, Series 1998-1 A1.... 5,003,526 4,981,961
6.49%, 7/25/09, Series 1996-2 A2.... 3,000,000 2,959,620
-----------
10,940,201
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $45,845,338)............................... 44,609,743
-----------
<CAPTION>
INVESTMENT COMPANIES (7.9%)
MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
Goldman Financial Square Treasury
Short Term Money Market Fund...... 1,896,420 $ 1,896,420
Provident Institutional Temporary
Investment Fund................... 1,896,420 1,896,420
-----------
TOTAL INVESTMENT COMPANIES
(Cost $3,792,840)................................ 3,792,840
-----------
TOTAL INVESTMENTS
(Cost $49,638,178)(a) -- 100.4%.................. 48,402,583
Liabilities in excess of other assets -- (0.4)%.... (192,163)
-----------
NET ASSETS -- 100.0%............................... $48,210,420
===========
</TABLE>
---------
<TABLE>
<C> <S>
(a) Represents cost for financial reporting and federal income
tax purposes and differs from value by net unrealized
depreciation of securities as follows:
</TABLE>
<TABLE>
<S> <C>
Unrealized appreciation... $ --
Unrealized depreciation... (1,235,595)
--------------------------
Net unrealized
depreciation............ $ (1,235,595)
==========================
</TABLE>
MTN -- Medium Term Note
CONTINUED
29
<PAGE>
CENTURA FUNDS, INC.
GOVERNMENT INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at value (cost
$49,638,178)........................ $48,402,583
Interest and dividends receivable..... 338,079
Receivable for capital shares
issued.............................. 7,048
Prepaid expenses and other assets..... 9,102
-----------
TOTAL ASSETS........................ 48,756,812
LIABILITIES:
Dividends payable..................... $258,592
Payable to custodian for overdraft.... 133,006
Payable for capital shares redeemed... 121,499
Accrued expenses and other payables:
Investment advisory fees............ 2,436
Administration fees................. 1,218
Distribution fees................... 1,103
Other............................... 28,538
--------
TOTAL LIABILITIES................... 546,392
-----------
NET ASSETS:
Capital............................... 51,311,316
Accumulated net realized loss from
investment transactions............. (1,865,301)
Net unrealized depreciation from
investments......................... (1,235,595)
-----------
NET ASSETS............................ $48,210,420
===========
Class A
Net Assets.......................... $ 4,492,550
Shares.............................. 464,969
Redemption price per share.......... $ 9.66
===========
Maximum Sales Charge--Class A......... 2.75%
Maximum Offering Price per share
(100%/(100%-Maximum Sales Charge)
of net asset value adjusted to the
nearest cent)..................... $ 9.93
===========
Class B
Net Assets.......................... $ 232,141
Shares.............................. 24,041
Offering price per share*........... $ 9.66
===========
Class C
Net Assets.......................... $43,485,729
Shares.............................. 4,499,827
Offering and redemption price per
share............................. $ 9.66
===========
</TABLE>
---------
<TABLE>
<C> <S>
* Redemption price of Class B shares varies based on length of
time held.
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED APRIL 30, 2000
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest income........................ $4,630,400
Dividend income........................ 279,382
----------
TOTAL INCOME......................... 4,909,782
EXPENSES:
Investment advisory fees............... $247,841
Administration fees.................... 123,922
Distribution fees--Class A............. 27,696
Distribution fees--Class B............. 2,240
Custodian fees......................... 20,649
Fund accounting fees................... 34,991
Transfer agent fees.................... 30,869
Other.................................. 60,539
--------
Total expenses before voluntary fee
reductions......................... 548,747
Expenses voluntarily reduced......... (14,408)
----------
Net Expenses......................... 534,339
----------
NET INVESTMENT INCOME.................. 4,375,443
----------
REALIZED/UNREALIZED LOSS FROM INVESTMENTS:
Net realized loss from investment
transactions and option contracts.... (1,880,926)
Change in unrealized depreciation from
investments and option contracts..... (1,253,852)
----------
Net realized/unrealized loss from
investments.......................... (3,134,778)
----------
Change in net assets resulting from
operations........................... $1,240,665
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
30
<PAGE>
CENTURA FUNDS, INC.
GOVERNMENT INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED APRIL 30,
----------------------------
2000 1999
------------ ------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income..................................... $ 4,375,443 $ 6,621,558
Net realized gains (losses) from investment
transactions............................................ (1,880,926) 777,883
Change in unrealized depreciation from investments........ (1,253,852) (118,464)
------------ ------------
Change in net assets resulting from operations.............. 1,240,665 7,280,977
------------ ------------
DIVIDENDS TO CLASS A SHAREHOLDERS:
From net investment income................................ (284,053) (25,895)
From net realized gains from investment transactions...... (21,476) (10,321)
DIVIDENDS TO CLASS B SHAREHOLDERS:
From net investment income................................ (10,370) (7,086)
From net realized gains from investment transactions...... (836) (3,965)
DIVIDENDS TO CLASS C SHAREHOLDERS:
From net investment income................................ (4,081,020) (6,588,577)
From net realized gains from investment transactions...... (262,670) (2,541,338)
------------ ------------
Change in net assets from shareholder dividends............. (4,660,425) (9,177,182)
------------ ------------
Change in net assets from capital transactions.............. (67,882,138) (10,320,659)
------------ ------------
Change in net assets........................................ (71,301,898) (12,216,864)
NET ASSETS:
Beginning of period....................................... 119,512,318 131,729,182
------------ ------------
End of period............................................. $ 48,210,420 $119,512,318
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
31
<PAGE>
CENTURA FUNDS, INC.
GOVERNMENT INCOME FUND
Selected data for a share outstanding throughout the period indicated
FINANCIAL HIGHLIGHTS, CLASS A
<TABLE>
<CAPTION>
FOR THE YEAR ENDED APRIL 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period........................ $10.03 $10.19 $ 9.94 $10.01 $ 9.97
------ ------ ------ ------ ------
Investment Activities
Net investment income..................................... 0.50 0.50 0.55 0.56 0.57
Net realized and unrealized gains (losses) from
investments............................................. (0.33) 0.04 0.25 (0.07) 0.04
------ ------ ------ ------ ------
Total from Investment Activities.......................... 0.17 0.54 0.80 0.49 0.61
------ ------ ------ ------ ------
Dividends
Net investment income..................................... (0.50) (0.50) (0.55) (0.56) (0.57)
Net realized gains........................................ (0.04) (0.20) -- -- --
------ ------ ------ ------ ------
Total Dividends........................................... (0.54) (0.70) (0.55) (0.56) (0.57)
------ ------ ------ ------ ------
Net Asset Value, End of Period.............................. $ 9.66 $10.03 $10.19 $ 9.94 $10.01
====== ====== ====== ====== ======
TOTAL RETURN (EXCLUDES SALES CHARGE)........................ 1.73% 5.38% 8.21% 5.07% 6.20%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)........................... $4,493 $ 678 $ 531 $ 481 $ 526
Ratio of expenses to average net assets..................... 0.88% 0.84% 0.84% 0.82% 0.85%
Ratio of net investment income to average net assets........ 5.13% 4.85% 5.42% 5.63% 5.61%
Ratio of expenses to average net assets*.................... 1.13% 1.09% 1.09% 1.07% (a)
Portfolio turnover rate**................................... 60% 104% 121% 26% 34%
</TABLE>
<TABLE>
<C> <S>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED
AND/OR REIMBURSED. IF SUCH VOLUNTARY FEE REDUCTIONS AND/OR
REIMBURSEMENTS HAD NOT OCCURRED, THE RATIO 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) THERE WERE NO WAIVERS OR REIMBURSEMENTS DURING THE PERIOD.
</TABLE>
FINANCIAL HIGHLIGHTS, CLASS B
<TABLE>
<CAPTION>
FOR THE YEAR ENDED APRIL 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period........................ $10.03 $10.18 $ 9.94 $10.01 $ 9.97
------ ------ ------ ------ ------
Investment Activities
Net investment income..................................... 0.45 0.45 0.50 0.50 0.50
Net realized and unrealized gains (losses) from
investments............................................. (0.33) 0.05 0.24 (0.07) 0.04
------ ------ ------ ------ ------
Total from Investment Activities.......................... 0.12 0.50 0.74 0.43 0.54
------ ------ ------ ------ ------
Dividends
Net investment income..................................... (0.45) (0.45) (0.50) (0.50) (0.50)
Net realized gains........................................ (0.04) (0.20) -- -- --
------ ------ ------ ------ ------
Total Dividends........................................... (0.49) (0.65) (0.50) (0.50) (0.50)
------ ------ ------ ------ ------
Net Asset Value, End of Period.............................. $ 9.66 $10.03 $10.18 $ 9.94 $10.01
====== ====== ====== ====== ======
TOTAL RETURN (EXCLUDES REDEMPTION CHARGE)................... 1.23% 4.96% 7.58% 4.46% 5.40%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)........................... $ 232 $ 195 $ 131 $ 194 $ 176
Ratio of expenses to average net assets..................... 1.38% 1.35% 1.36% 1.40% 1.61%
Ratio of net investment income to average net assets........ 4.63% 4.32% 4.93% 5.04% 4.84%
Ratio of expenses to average net assets*.................... 1.63% 1.60% 1.61% 1.65% (a)
Portfolio turnover rate**................................... 60% 104% 121% 26% 34%
</TABLE>
<TABLE>
<C> <S>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED
AND/OR REIMBURSED. IF SUCH VOLUNTARY FEE REDUCTIONS AND/OR
REIMBURSEMENTS HAD NOT OCCURRED, THE RATIO 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) THERE WERE NO WAIVERS OR REIMBURSEMENTS DURING THE PERIOD.
</TABLE>
CONTINUED
32
<PAGE>
CENTURA FUNDS, INC.
GOVERNMENT INCOME FUND
Selected data for a share outstanding throughout the period indicated
FINANCIAL HIGHLIGHTS, CLASS C
<TABLE>
<CAPTION>
FOR THE YEAR ENDED APRIL 30,
------------------------------------------------------------
2000 1999 1998 1997 1996
-------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period........................ $ 10.03 $ 10.19 $ 9.94 $ 10.01 $ 9.97
------- -------- -------- -------- --------
Investment Activities
Net investment income..................................... 0.53 0.52 0.57 0.59 0.60
Net realized and unrealized gains (losses) from
investments............................................. (0.33) 0.04 0.25 (0.07) 0.04
------- -------- -------- -------- --------
Total from Investment Activities.......................... 0.20 0.56 0.82 0.52 0.64
------- -------- -------- -------- --------
Dividends
Net investment income..................................... (0.53) (0.52) (0.57) (0.59) (0.60)
Net realized gains........................................ (0.04) (0.20) -- -- --
------- -------- -------- -------- --------
Total Dividends........................................... (0.57) (0.72) (0.57) (0.59) (0.60)
------- -------- -------- -------- --------
Net Asset Value, End of Period.............................. $ 9.66 $ 10.03 $ 10.19 $ 9.94 $ 10.01
======= ======== ======== ======== ========
TOTAL RETURN................................................ 1.99% 5.64% 8.48% 5.33% 6.47%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)........................... $43,486 $118,640 $131,068 $119,434 $109,775
Ratio of expenses to average net assets..................... 0.63% 0.59% 0.59% 0.58% 0.61%
Ratio of net investment income to average net assets........ 5.31% 5.11% 5.68% 5.88% 5.88%
Portfolio turnover rate**................................... 60% 104% 121% 26% 34%
</TABLE>
<TABLE>
<C> <S>
** PORTFOLIO TURNOVER IS CALCULATED ON THE BASIS OF THE FUND AS
A WHOLE WITHOUT DISTINGUISHING BETWEEN THE CLASSES OF SHARES
ISSUED.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
33
<PAGE>
CENTURA FUNDS, INC.
AS OF APRIL 30, 2000
QUALITY INCOME FUND
GROWTH OF A $10,000 INVESTMENT
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
CLASS A CLASS A WITH LOAD (RETURN REFLECTS LEHMAN BROTHERS
<S> <C> <C> <C>
without Load maximum sales load of 2.75%) Government/Corporate Bond Index*
5/99 $10,000 $9,728 $10,000
5/99 $9,965 $9,694 $9,897
6/99 $9,937 $9,666 $9,866
7/99 $9,907 $9,637 $9,839
8/99 $9,888 $9,618 $9,831
9/99 $9,960 $9,688 $9,919
10/99 $9,973 $9,701 $9,945
11/99 $9,977 $9,705 $9,939
12/99 $9,932 $9,661 $9,878
1/00 $9,907 $9,637 $9,876
2/00 $10,004 $9,731 $9,999
3/00 $10,176 $9,899 $10,143
4/00 $10,003 $9,731 $10,093
</TABLE>
<TABLE>
<CAPTION>
AGGREGATE TOTAL RETURN
<S> <C> <C> <C>
SINCE INCEPTION 0.03% (2.69%) 0.93%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEHMAN BROTHERS
<S> <C> <C>
Class C (No Load) Government/Corporate Bond Index*
5/99 $10,000 $10,000
5/99 $9,955 $9,897
6/99 $9,933 $9,866
7/99 $9,905 $9,839
8/99 $9,888 $9,831
9/99 $9,962 $9,919
10/99 $9,977 $9,945
11/99 $9,983 $9,939
12/99 $9,941 $9,878
1/00 $9,918 $9,876
2/00 $10,017 $9,999
3/00 $10,181 $10,143
4/00 $10,020 $10,093
</TABLE>
<TABLE>
<CAPTION>
AGGREGATE TOTAL RETURN
<S> <C> <C>
SINCE INCEPTION 0.20% 0.93%
</TABLE>
Each chart represents a historical investment of $10,000 in the Centura Quality
Income Fund from 5/99 to 4/00, and represents the reinvestment of dividends and
capital gains in the Fund.
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 GOVERNMENT/CORPORATE BOND INDEX is an unmanaged index
generally representative of the intermediate government and corporate bond
markets.
Investors cannot invest directly in an index, although they can invest in its
underlying securities.
The inception date for performance purposes is May 11, 1999.
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.
34
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
QUALITY INCOME FUND APRIL 30, 2000
<TABLE>
<CAPTION>
ASSET BACKED SECURITIES (5.3%)
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
------------ -------------
<S> <C> <C>
BANKING & FINANCIAL SERVICES (5.3%)
American Express Credit Account
Master Trust, 6.80%, 12/15/03... $ 500,000 $ 498,380
CIT RV Trust, Series 1999-A,
Class A3, 5.96%, 4/15/11........ 530,000 510,835
Discover Card Master Trust 1,
Series 1999-2, Class B, 6.10%,
10/15/04........................ 750,000 722,550
Fingerhut Master Trust, Series
1998-1, Class B, 6.29%,
2/15/02......................... 600,000 587,256
Green Tree Recreational, Equipment
& Consumer Trust, Series 1997-C,
Class A1, 6.49%, 2/15/18........ 349,126 342,294
The Money Store Equity Trust,
Class 1996-A, Series A, 7.36%,
3/15/24......................... 550,000 544,412
WFS Financial Owner Trust, Series
1999-B, Class A3, 6.32%,
10/20/03........................ 500,000 492,700
------------
TOTAL ASSET BACKED SECURITIES
(Cost $3,788,463)............................... 3,698,427
------------
CORPORATE BONDS (37.3%)
AEROSPACE/DEFENSE (1.2%)
Raytheon Co., 6.75%, 3/15/18...... 1,000,000 833,750
------------
AIRLINES (4.2%)
American Airlines, Inc., Series
99-1, 7.02%, 10/15/09........... 1,000,000 940,845
AMR Corp., 9.13%, 10/24/01........ 1,000,000 1,020,000
Northwest Airlines Corp., 9.49%,
4/1/15.......................... 1,000,000 994,255
------------
2,955,100
------------
BANKING & FINANCIAL SERVICES (11.0%)
American Financial Group, 7.13%,
4/15/09......................... 1,000,000 892,500
AT&T Capital Corp., MTN, 6.88%,
1/16/01......................... 500,000 499,375
Banco Latino Americano SA, 6.50%,
4/2/01 (b)...................... 1,225,000 1,217,763
Bear Stearns Co., Inc., 7.63%,
12/7/09......................... 1,000,000 957,500
Capital One Bank Co., 7.00%,
4/30/01......................... 400,000 398,000
GMAC, 8.38%, 2/22/05.............. 1,000,000 1,018,750
Heller Financial, Inc., 6.25%,
3/1/01.......................... 500,000 496,250
International Lease Finance Corp.,
MTN, 5.78%, 3/1/01.............. 400,000 395,500
Lehman Brothers Holdings, 6.50%,
10/1/02......................... 135,000 131,119
Lehman Brothers Holdings, 7.75%,
1/15/05......................... 1,250,000 1,231,249
Lehman Brothers Holdings, MTN,
6.90%, 3/30/01.................. 355,000 354,113
------------
7,592,119
------------
<CAPTION>
ASSET BACKED SECURITIES, CONTINUED:
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
------------ -------------
<S> <C> <C>
BUSINESS EQUIPMENT & SERVICES (0.7%)
Comdisco, Inc., 6.13%, 8/1/01..... $ 500,000 $ 489,375
------------
CABLE (1.8%)
Tele-Communications, Inc., 9.65%,
10/1/03......................... 1,200,000 1,231,500
------------
COMMERCIAL SERVICES (1.4%)
Hertz Corp., 7.63%, 8/15/07....... 1,000,000 987,500
------------
FOREIGN AGENCY (0.7%)
Quebec Province, 7.00%, 1/30/07... 500,000 485,000
------------
INSURANCE (2.3%)
Conseco, Inc., 6.40%, 6/15/01..... 2,425,000 1,588,375
------------
MEDIA (2.8%)
Knight-Ridder, Inc., 8.50%,
9/1/01.......................... 1,000,000 1,011,250
Time Warner, Inc., 6.10%,
12/30/01 (b).................... 1,000,000 977,500
------------
1,988,750
------------
RETAIL (1.4%)
Safeway, Inc., 5.88%, 11/15/01.... 500,000 486,250
Sears Roebuck & Co., MTN, 8.51%,
12/27/01........................ 500,000 507,500
------------
993,750
------------
TELECOMMUNICATIONS (2.7%)
AT&T Canada, Inc., 7.65%,
9/15/06......................... 1,000,000 990,000
Sprint Capital Corp., 6.38%,
5/1/09.......................... 1,000,000 903,750
------------
1,893,750
------------
TOBACCO (1.0%)
Philip Morris, 7.25%, 9/15/01..... 250,000 244,688
Philip Morris, 7.13%, 8/15/02..... 250,000 240,625
R.J. Reynolds Tobacco Holdings,
Inc., 7.38%, 5/15/03............ 275,000 240,281
------------
725,594
------------
TRANSPORTATION & SHIPPING (1.3%)
Atlas Air, Inc., 7.20%, 1/2/19.... 988,983 918,068
------------
UTILITIES (2.1%)
Niagra Mohawk Power Co., 7.75%,
5/15/06......................... 1,000,000 983,750
PacifiCorp Holdings, Inc., 7.20%,
4/1/06 (b)...................... 500,000 482,500
------------
1,466,250
------------
YANKEE BONDS (2.7%)
Abbey National PLC, 7.35%,
10/29/49........................ 1,000,000 927,848
Skandnaviska Enskilda, 6.50%,
12/29/49........................ 1,000,000 933,929
------------
1,861,777
------------
TOTAL CORPORATE BONDS (Cost $27,440,517).......... 26,010,658
------------
</TABLE>
CONTINUED
35
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
QUALITY INCOME FUND APRIL 30, 2000
<TABLE>
<CAPTION>
U.S. TREASURY BILLS (4.2%)
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
------------ -------------
<S> <C> <C>
5.70%*, 7/27/00................... $ 3,000,000 $ 2,959,110
------------
TOTAL U.S. TREASURY BONDS
(Cost $2,959,255)............................... 2,959,110
------------
8.88%, 2/15/19.................... 1,000,000 1,281,140
------------
TOTAL U.S. TREASURY NOTES (Cost $1,204,565)....... 1,281,140
------------
7.50%, 11/15/16................... 3,000,000 3,366,450
7.13%, 2/15/23.................... 5,500,000 6,079,865
6.25%, 5/15/30.................... 5,850,000 6,085,638
------------
TOTAL U.S. TREASURY BONDS
(Cost $15,313,984).............................. 15,531,953
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION (1.3%)
6.50%, 9/1/06, Gold Pool
#G40372......................... 952,631 919,289
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (17.6%)
7.13%, 2/15/05.................... 3,000,000 2,985,181
9.50%, 1/1/13, Pool #415829....... 1,044,826 1,095,426
7.00%, 7/1/14, Pool #507449....... 962,947 940,973
7.00%, 7/1/29, Pool #504712....... 988,395 946,072
7.50%, 10/1/29, Pool #517513...... 2,496,347 2,444,073
7.00%, 11/1/29, Pool #444363...... 1,000,000 957,180
8.00%, 3/1/30, Pool #528675....... 955,265 954,367
7.00%, 4/1/30..................... 1,000,000 957,333
8.00%, 4/1/30..................... 1,000,000 1,000,294
------------
12,280,899
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (0.9%)
7.00%, 8/15/14, Pool #434500...... 607,001 595,808
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost
$13,909,613).................................... 13,795,996
------------
INVESTMENT COMPANIES (5.3%)
GOLDMAN SACHS FINANCIAL SQUARE
PRIME MONEY MARKET FUND.......... 1,850,064 1,850,064
Provident Institutional Temporary
Investment Fund................. 1,850,063 1,850,063
------------
TOTAL INVESTMENT COMPANIES
(Cost $3,700,127)............................... 3,700,127
------------
TOTAL INVESTMENTS
(Cost $68,316,524)(a) -- 96.0%.................. 66,977,411
Other assets in excess of liabilities -- 4.0%..... 2,820,630
------------
NET ASSETS -- 100.0%.............................. $ 69,798,041
============
</TABLE>
---------
<TABLE>
<C> <S>
* Effective yield.
(a) Represents cost for financial reporting and federal income
tax purposes and differs from value by net unrealized
depreciation of securities as follows:
</TABLE>
<TABLE>
<S> <C>
Unrealized appreciation... $ 356,101
Unrealized depreciation... (1,695,214)
--------------------------
Net unrealized
depreciation............ $ (1,339,113)
==========================
</TABLE>
<TABLE>
<C> <S>
(b) Security exempt from registration under Rule 144A of the
Securities Act of 1933, as amended. These securities may be
resold in transactions exempt from registration, normally to
qualified institutional buyers. Securities have been deemed
to be liquid based on procedures approved by the Board of
Directors.
</TABLE>
MTN -- Medium Term Note
SEE NOTES TO FINANCIAL STATEMENTS
36
<PAGE>
CENTURA FUNDS, INC.
QUALITY INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at value
(cost $68,316,524).................. $66,977,411
Interest and dividends receivable..... 1,018,340
Receivable for capital shares
issued.............................. 37,817
Receivable for investments sold....... 2,540,234
Prepaid expenses and other assets..... 10,067
-----------
TOTAL ASSETS........................ 70,583,869
LIABILITIES:
Dividends payable..................... $344,041
Payable to custodian for overdraft.... 344,396
Payable for capital shares redeemed... 27,404
Accrued expenses and other payables:
Investment advisory fees............ 6,783
Administration fees................. 1,696
Distribution fees................... 50
Other............................... 61,458
--------
TOTAL LIABILITIES................... 785,828
-----------
NET ASSETS:
Capital............................... 71,614,611
Accumulated undistributed net
investment income................... 4,068
Accumulated net realized loss from
investment transactions............. (481,525)
Net unrealized depreciation from
investments......................... (1,339,113)
-----------
NET ASSETS............................ $69,798,041
===========
Class A
Net Assets.......................... $ 240,306
Shares.............................. 25,288
Redemption price per share.......... $ 9.50
===========
Maximum Sales Charge--Class A......... 2.75%
Maximum Offering Price per share
(100%/(100%-Maximum Sales Charge)
of net asset value adjusted to the
nearest cent)..................... $ 9.77
===========
Class C
Net Assets.......................... $69,557,735
Shares.............................. 7,322,077
Offering and redemption price per
share............................. $ 9.50
===========
</TABLE>
---------
<TABLE>
<C> <S>
(a) For the period from May 11, 1999 (commencement of
operations) to April 30, 2000.
</TABLE>
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED APRIL 30, 2000 (A)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest income....................... $ 2,686,083
Dividend income....................... 113,421
-----------
TOTAL INCOME........................ 2,799,504
EXPENSES:
Investment advisory fees.............. $246,461
Administration fees................... 62,094
Distribution fees--Class A............ 729
Custodian fees........................ 10,354
Fund accounting fees.................. 36,153
Transfer agent fees................... 17,944
Other................................. 87,027
--------
Total expenses before voluntary fee
reductions........................ 460,762
Expenses voluntarily reduced........ (6,218)
-----------
Net Expenses........................ 454,544
-----------
NET INVESTMENT INCOME................. 2,344,960
-----------
REALIZED/UNREALIZED LOSS FROM INVESTMENTS:
Net realized loss from investment
transactions........................ (481,525)
Change in unrealized depreciation from
investments......................... (1,339,113)
-----------
Net realized/unrealized loss from
investments......................... (1,820,638)
-----------
Change in net assets resulting from
operations.......................... $ 524,322
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
37
<PAGE>
CENTURA FUNDS, INC.
QUALITY INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
PERIOD ENDED
APRIL 30,
2000 (A)
-------------
<S> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income..................................... $ 2,344,960
Net realized losses from investment transactions.......... (481,525)
Change in unrealized depreciation from investments........ (1,339,113)
-------------
Change in net assets resulting from operations.............. 524,322
-------------
DIVIDENDS TO CLASS A SHAREHOLDERS:
From net investment income................................ (8,033)
DIVIDENDS TO CLASS C SHAREHOLDERS:
From net investment income................................ (2,336,927)
-------------
Change in net assets from shareholder dividends............. (2,344,960)
-------------
Change in net assets from capital transactions.............. 71,618,679
-------------
Change in net assets........................................ 69,798,041
NET ASSETS:
Beginning of period....................................... --
-------------
End of period............................................. $ 69,798,041
=============
</TABLE>
---------
<TABLE>
<C> <S>
(a) For the period from May 11, 1999 (commencement of
operations) to April 30, 2000.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
38
<PAGE>
CENTURA FUNDS, INC.
QUALITY INCOME FUND
Selected data for a share outstanding throughout the period indicated
FINANCIAL HIGHLIGHTS, CLASS A
<TABLE>
<CAPTION>
FOR THE
PERIOD ENDED
APRIL 30,
2000 (A)
-------------
<S> <C>
Net Asset Value, Beginning of Period........................ $ 10.00
-------
Investment Activities
Net investment income..................................... 0.50
Net realized and unrealized losses from investments....... (0.50)
-------
Total from Investment Activities.......................... --
-------
Dividends
Net investment income..................................... (0.50)
-------
Total Dividends........................................... (0.50)
-------
Net Asset Value, End of Period.............................. $ 9.50
=======
TOTAL RETURN (EXCLUDES SALES CHARGE)........................ 0.03%(c)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)........................... $ 240
Ratio of expenses to average net assets..................... 1.34%(b)
Ratio of net investment income to average net assets........ 5.50%(b)
Ratio of expenses to average net assets*.................... 1.59%(b)
Portfolio turnover rate**................................... 314%
</TABLE>
<TABLE>
<C> <S>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED
AND/OR REIMBURSED. IF SUCH VOLUNTARY FEE REDUCTIONS AND/OR
REIMBURSEMENTS HAD NOT OCCURRED, THE RATIO 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 11, 1999 (COMMENCEMENT OF
OPERATIONS) TO APRIL 30, 2000.
(b) ANNUALIZED.
(c) NOT ANNUALIZED.
</TABLE>
FINANCIAL HIGHLIGHTS, CLASS C
<TABLE>
<CAPTION>
FOR THE
PERIOD ENDED
APRIL 30,
2000 (A)
-------------
<S> <C>
Net Asset Value, Beginning of Period........................ $ 10.00
-------
Investment Activities
Net investment income..................................... 0.52
Net realized and unrealized losses from investments....... (0.50)
-------
Total from Investment Activities.......................... 0.02
-------
Dividends
Net investment income..................................... (0.52)
-------
Total Dividends........................................... (0.52)
-------
Net Asset Value, End of Period.............................. $ 9.50
=======
TOTAL RETURN................................................ 0.20%(c)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)........................... $69,558
Ratio of expenses to average net assets..................... 1.09%(b)
Ratio of net investment income to average net assets........ 5.65%(b)
Ratio of expenses to average net assets*.................... 1.11%(b)
Portfolio turnover rate**................................... 314%
</TABLE>
<TABLE>
<C> <S>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED
AND/OR REIMBURSED. IF SUCH VOLUNTARY FEE REDUCTIONS AND/OR
REIMBURSEMENTS HAD NOT OCCURRED, THE RATIO 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 11, 1999 (COMMENCEMENT OF
OPERATIONS) TO APRIL 30, 2000.
(b) ANNUALIZED.
(c) NOT ANNUALIZED.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
39
<PAGE>
CENTURA FUNDS, INC.
AS OF APRIL 30, 2000
NORTH CAROLINA TAX-FREE BOND FUND
GROWTH OF A $10,000 INVESTMENT
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
CLASS A
<S> <C> <C> <C> <C>
with Load Lehman Brothers Lipper State
(Return
reflects 5-Year Intermediate
Class A maximum sales Municipal Municipal
without Load load of 2.75%) Index* Average*
1/91 $10,000 $9,725 $10,000 $10,000
12/91 $10,590 $10,304 $10,986 $10,987
12/92 $11,123 $10,822 $11,823 $11,781
12/93 $11,979 $11,655 $12,856 $12,897
12/94 $11,474 $11,164 $12,692 $12,455
12/95 $12,881 $12,533 $14,169 $14,014
12/96 $13,206 $12,849 $14,770 $14,519
12/97 $14,266 $13,881 $15,712 $15,508
12/98 $15,059 $14,652 $16,631 $16,319
12/99 $14,818 $14,418 $16,755 $15,926
4/00 $14,954 $14,550 $16,917 $16,172
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
<S> <C> <C> <C> <C>
1 YEAR (1.15)% (3.91)% 0.36% (1.43)%
5 YEAR 4.48% 3.90% 5.00% 4.37%
SINCE INCEPTION 4.45% 4.14% 5.85% 5.22%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
CLASS B
<S> <C> <C> <C> <C>
with Load
(Return reflects
the appropriate
contingent deferred
sales charge Lehman Brothers Lipper State
(maximum deferred 5-Year Intermediate
Class B sales load Municipal Municipal
without Load is 3.00%)) Index* Average*
1/91 $10,000 $9,700 $10,000 $10,000
12/91 $10,548 $10,248 $10,986 $10,987
12/92 $11,027 $10,727 $11,823 $11,781
12/93 $11,838 $11,538 $12,856 $12,897
12/94 $11,268 $10,968 $12,692 $12,455
12/95 $12,556 $12,356 $14,169 $14,014
12/96 $12,775 $12,775 $14,770 $14,519
12/97 $13,729 $13,729 $15,712 $15,508
12/98 $14,453 $14,453 $16,631 $16,319
12/99 $14,152 $14,152 $16,755 $15,926
4/00 $14,258 $14,258 $16,917 $16,172
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
<S> <C> <C> <C> <C>
1 YEAR (1.64)% (4.49)% 0.36% (1.43)%
5 YEAR 3.92% 3.74% 5.00% 4.37%
SINCE INCEPTION 3.91% 3.91% 5.85% 5.22%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LEHMAN BROTHERS LIPPER STATE
<S> <C> <C> <C>
5-Year Intermediate
Class C Municipal Municipal
(No Load) Index* Average*
1/91 $10,000 $10,000 $10,000
12/91 $10,635 $10,986 $10,987
12/92 $11,224 $11,823 $11,781
12/93 $12,153 $12,856 $12,897
12/94 $11,685 $12,692 $12,455
12/95 $13,152 $14,169 $14,014
12/96 $13,517 $14,770 $14,519
12/97 $14,634 $15,712 $15,508
12/98 $15,490 $16,631 $16,319
12/99 $15,281 $16,755 $15,926
4/00 $15,434 $16,917 $16,172
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
<S> <C> <C> <C>
1 YEAR (0.90)% 0.36% (1.43)%
5 YEAR 4.74% 5.00% 4.37%
SINCE INCEPTION 4.81% 5.85% 5.22%
</TABLE>
Each chart represents a historical investment of $10,000 in the Centura North
Carolina Tax-Free Bond Fund from 1/91 to 4/00, and represents the reinvestment
of dividends and capital gains in the Fund.
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 STATE INTERMEDIATE
MUNICIPAL AVERAGE of the total returns reported by all of the mutual funds
designated by Lipper, Inc. that fall into this category. Lipper is an
independent mutual fund performance monitor whose results are based on total
return and do not reflect a sales charge.
Investors cannot invest directly in an index, although they can invest in its
underlying securities.
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 investment objective, policies and techniques of
the Commingled Accounts were equivalent in all material aspects to those 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, their 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.
40
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
NORTH CAROLINA TAX-FREE BOND FUND APRIL 30, 2000
<TABLE>
<CAPTION>
NORTH CAROLINA MUNICIPAL OBLIGATIONS (98.6%)
PRINCIPAL MARKET
AMOUNT VALUE
------------ -------------
<S> <C> <C>
Cabarrus County GO, 5.30%, 2/1/08,
Callable 2/1/07 @ 100.5, (MBIA
Insured)........................ $ 935,000 $ 948,875
Carteret County GO, 5.40%, 5/1/09,
Callable 5/1/06 @ 101.5, (MBIA
Insured)........................ 1,000,000 1,021,090
Catawba County Memorial Hospital
Project Revenue, 4.40%, 10/1/08,
(AMBAC Insured)................. 1,000,000 915,510
Centennial Authority North
Carolina Hotel Tax Revenue,
Arena Project, 4.65%, 9/1/06,
(FSA Insured)................... 1,000,000 964,530
Charlotte Mecklenberg Hospital
Authority GO, 6.00%, 1/1/04,
Callable 1/1/02 @ 102........... 620,000 637,286
Charlotte Mecklenberg Hospital
Authority GO, 4.90%, 1/15/10,
Callable 1/15/07 @ 102.......... 1,000,000 940,090
Charlotte, North Carolina GO,
4.75%, 2/1/10, Callable 2/1/08 @
101............................. 435,000 415,803
Cleveland County UTGO, Refunding,
5.10%, 6/1/07, Callable 6/1/03 @
102, (FGIC Insured)............. 1,400,000 1,406,132
Concord North Carolina Utilities
Systems RB, 6.00%, 12/1/10,
Callable 12/1/02 @ 102, Sinkable
12/1/06 @ 100, (MBIA Insured)... 1,630,000 1,706,903
Craven County GO, 5.40%, 6/1/02,
(MBIA Insured).................. 1,000,000 1,013,250
Cumberland County Civic Center
Project CP, Series A, 6.20%,
12/1/07, Callable 12/1/04 @ 102,
(AMBAC Insured)................. 1,535,000 1,637,722
Cumberland County Hospital
Facility RB, Refunding, 5.25%,
10/1/10, Callable 10/1/09 @
101............................. 500,000 472,890
Dare County CP, Series A, 4.50%,
5/1/04, (MBIA Insured).......... 1,000,000 975,490
Durham County GO, 5.75%, 2/1/07,
Callable 2/1/02 @ 102........... 880,000 908,239
Durham, North Carolina GO, 5.40%,
3/1/13, Callable 3/1/10 @
101.5........................... 500,000 507,700
Fayetteville Public Works
Commission Revenue, Series A,
5.25%, 3/1/08, Callable 3/1/05 @
102, (AMBAC Insured)............ 1,280,000 1,283,187
Gaston County Public Facilities
Project CP, 4.75%, 12/1/05,
(MBIA Insured).................. 1,000,000 980,970
Gaston County UTGO, 5.70%, 3/1/05,
Callable 3/1/04 @ 100.5, (MBIA
Insured)........................ 1,000,000 1,030,190
Housing Finance Agency Revenue,
4.40%, 9/1/03, AMT.............. 400,000 391,088
Housing Finance Agency, Series 4A,
4.45%, 1/1/07, AMT.............. 250,000 238,355
Housing Finance Agency, Series 4A,
4.45%, 7/1/07, AMT.............. 250,000 237,638
<CAPTION>
NORTH CAROLINA MUNICIPAL OBLIGATIONS, CONTINUED:
PRINCIPAL MARKET
AMOUNT VALUE
------------ -------------
<S> <C> <C>
Housing Finance Agency, Series A1,
Refunding, 4.65%, 1/1/04........ $ 500,000 $ 492,315
Housing Finance Agency, Series A1,
Refunding, 4.75%, 1/1/05........ 500,000 491,750
Iredell County, 4.75%, 2/1/12,
Callable 2/1/07 @ 102........... 500,000 462,690
Iredell County Memorial Hospital
Revenue, 5.10%, 10/1/11,
Callable 10/1/07 @ 101, (AMBAC
Insured)........................ 1,000,000 974,460
Moore Medical Care Community
Hospital Revenue, 5.20%,
10/1/13, Callable 10/1/03 @
102............................. 300,000 282,636
New Hanover County Medical Center
Project Revenue, 4.25%, 10/1/10,
Callable 10/1/09 @ 101, (MBIA
Insured)........................ 500,000 439,090
New Hanover County, NC Hospital
Revenue Bond, 5.30%, 11/1/03.... 500,000 506,775
North Carolina Medical Care
Community Health Care RB, 4.75%,
10/1/05......................... 500,000 480,215
North Carolina Medical Care
Community Hospital, 5.75%,
6/1/13, Callable 6/1/09 @ 102... 525,000 512,022
North Carolina Medical Care
Community Hospital, Baptist
Hospital Project, 3.50%,
6/1/12.......................... 500,000 500,000
North Carolina Municipal Power
Agency #1, Catawba Electric
Revenue, Refunding, 5.25%,
1/1/09, (MBIA Insured).......... 1,500,000 1,490,085
Onslow County UTGO, 5.60%,
3/1/05.......................... 1,000,000 1,025,660
Orange County, North Carolina,
5.30%, 4/1/14, Callable 4/1/10 @
102............................. 500,000 495,660
Piedmont Triad Airport Authority
Revenue, Refunding, 6.75%,
7/1/10, Callable 7/1/00 @ 102,
Sinkable 7/1/06 @100, (MBIA
Insured)........................ 500,000 511,735
Pitt County Memorial Hospital
Revenue, 5.38%, 12/1/10,
Callable 12/1/05 @ 102.......... 1,000,000 1,008,630
Pitt County Public Facilities CP,
Series A, 5.35%, 4/1/07, (MBIA
Insured)........................ 625,000 632,288
Raleigh UTGO, Refunding, 6.40%,
3/1/02.......................... 1,250,000 1,277,163
Union County Enterprise System
Water Utility Improvement
Revenue, 5.35%, 6/1/09, Callable
6/1/06 @ 102, (MBIA Insured).... 500,000 505,370
University of North Carolina,
Utility System RB, Refunding,
5.00%, 8/1/09, Callable 8/1/02 @
102............................. 1,460,000 1,448,685
</TABLE>
CONTINUED
41
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
NORTH CAROLINA TAX-FREE BOND FUND APRIL 30, 2000
<TABLE>
<CAPTION>
NORTH CAROLINA MUNICIPAL OBLIGATIONS, CONTINUED:
PRINCIPAL MARKET
AMOUNT VALUE
------------ -------------
<S> <C> <C>
Wake Forest University Education
Facility, 5.00%, 11/1/12,
Callable 11/1/07 @ 102, Sinkable
11/1/09 @ 100................... $ 500,000 $ 481,320
Wilkes County UTGO, Refunding,
5.20%, 6/1/05, Callable 6/1/03 @
101............................. 1,275,000 1,281,439
Winston Salem CP, Series A, 5.30%,
6/1/09, Callable 6/1/06 @ 102,
Sinkable 6/1/08 @ 100........... 1,000,000 1,007,470
Winston Salem State University
Revenue, Refunding, 4.75%,
1/1/10, Callable 1/1/09 @ 101,
(MBIA Insured).................. 500,000 470,505
Winston Salem State University
Revenue, Refunding, 4.85%,
1/1/11, Callable 1/1/09 @ 101,
(MBIA Insured).................. 500,000 469,330
Winston Salem Water & Sewer System
RB, 6.30%, 6/1/06, Prerefunded
6/1/02 @ 102.................... 1,000,000 1,047,370
------------
TOTAL NORTH CAROLINA MUNICIPAL OBLIGATIONS
(Cost $37,245,193).............................. 36,927,601
------------
TOTAL INVESTMENTS
(Cost $37,245,193)(a) -- 98.6%.................. 36,927,601
Other assets in excess of liabilities -- 1.4%..... 535,703
------------
NET ASSETS -- 100.0%.............................. $ 37,463,304
============
</TABLE>
---------
<TABLE>
<C> <S>
(a) Represents cost for financial reporting and federal income
tax purposes and differs from value by net unrealized
depreciation of securities as follows:
</TABLE>
<TABLE>
<S> <C>
Unrealized appreciation... $ 284,840
Unrealized depreciation... (602,432)
--------------------------
Net unrealized
depreciation............ $ (317,592)
==========================
</TABLE>
AMBAC -- American Municipal Bond Assurance Corp.
AMT -- Alternative Minimum Tax
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
42
<PAGE>
CENTURA FUNDS, INC.
NORTH CAROLINA TAX-FREE BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at value (cost
$37,245,193)........................ $36,927,601
Cash.................................. 100,201
Interest and dividends receivable..... 584,836
Prepaid expenses...................... 7,753
-----------
TOTAL ASSETS........................ 37,620,391
LIABILITIES:
Dividends payable..................... $132,629
Payable for capital shares redeemed... 330
Accrued expenses and other payables:
Investment advisory fees............ 2,161
Administration fees................. 803
Distribution fees................... 1,218
Other............................... 19,946
--------
TOTAL LIABILITIES................... 157,087
-----------
NET ASSETS:
Capital............................... 37,848,429
Accumulated undistributed (dividends
in excess of) net investment
income.............................. (19,969)
Accumulated net realized loss from
investment transactions............. (47,564)
Net unrealized depreciation from
investments......................... (317,592)
-----------
NET ASSETS............................ $37,463,304
===========
Class A
Net Assets.......................... $ 4,553,505
Shares.............................. 459,327
Redemption price per share.......... $ 9.91
===========
Maximum Sales Charge--Class A......... 2.75%
Maximum Offering Price per share
(100%/(100%-Maximum Sales Charge)
of net asset value adjusted to the
nearest cent)..................... $ 10.19
===========
Class B
Net Assets.......................... $ 448,963
Shares.............................. 45,269
Offering price per share*........... $ 9.92
===========
Class C
Net Assets.......................... $32,460,836
Shares.............................. 3,274,420
Offering and redemption price per
share............................. $ 9.91
===========
</TABLE>
---------
<TABLE>
<C> <S>
* Redemption price of Class B shares varies based on length of
time held.
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED APRIL 30, 2000
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest income........................ $ 1,932,215
Dividend income........................ 41,397
-----------
TOTAL INCOME......................... 1,973,612
EXPENSES:
Investment advisory fees............... $141,519
Administration fees.................... 60,706
Distribution fees--Class A............. 23,616
Distribution fees--Class B............. 5,318
Custodian fees......................... 10,246
Fund accounting fees................... 37,439
Transfer agent fees.................... 21,232
Other.................................. 39,847
--------
Total expenses before voluntary fee
reductions......................... 339,923
Expenses voluntarily reduced......... (25,921)
-----------
Net Expenses......................... 314,002
-----------
NET INVESTMENT INCOME.................. 1,659,610
-----------
REALIZED/UNREALIZED GAIN (LOSS) FROM INVESTMENTS:
Net realized gain from investment
transactions......................... 5,046
Change in unrealized depreciation from
investments.......................... (2,155,715)
-----------
Net realized/unrealized loss from
investments.......................... (2,150,669)
-----------
Change in net assets resulting from
operations........................... $ (491,059)
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
43
<PAGE>
CENTURA FUNDS, INC.
NORTH CAROLINA TAX-FREE BOND FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED APRIL 30,
----------------------------
2000 1999
------------ ------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income..................................... $ 1,659,610 $ 1,821,618
Net realized gains from investment transactions........... 5,046 138,635
Change in unrealized appreciation (depreciation) from
investments............................................. (2,155,715) 725,806
----------- -----------
Change in net assets resulting from operations.............. (491,059) 2,686,059
----------- -----------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income................................ (181,790) (192,663)
In excess of net investment income........................ (2,548) --
From net realized gains from investment transactions...... (11,939) (23,290)
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income................................ (17,741) (18,881)
In excess of net investment income........................ (315) --
From net realized gains from investment transactions...... (1,248) (2,692)
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income................................ (1,460,079) (1,610,074)
In excess of net investment income........................ (20,843) --
From net realized gains from investment transactions...... (86,423) (176,469)
----------- -----------
Change in net assets from shareholder distributions......... (1,782,926) (2,024,069)
----------- -----------
Change in net assets from capital transactions.............. (5,221,478) 1,665,646
----------- -----------
Change in net assets........................................ (7,495,463) 2,327,636
NET ASSETS:
Beginning of period....................................... 44,958,767 42,631,131
----------- -----------
End of period............................................. $37,463,304 $44,958,767
=========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
44
<PAGE>
CENTURA FUNDS, INC.
NORTH CAROLINA TAX-FREE BOND FUND
Selected data for a share outstanding throughout the period indicated
FINANCIAL HIGHLIGHTS, CLASS A
<TABLE>
<CAPTION>
FOR THE YEAR ENDED APRIL 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period........................ $10.45 $10.30 $ 9.98 $10.04 $ 9.98
------ ------ ------ ------ ------
Investment Activities
Net investment income..................................... 0.38 0.41 0.43 0.43 0.42
Net realized and unrealized gains (losses) from
investments............................................. (0.51) 0.20 0.32 0.03 0.13
------ ------ ------ ------ ------
Total from Investment Activities.......................... (0.13) 0.61 0.75 0.46 0.55
------ ------ ------ ------ ------
Distributions
Net investment income..................................... (0.38) (0.41) (0.43) (0.43) (0.42)
In excess of net investment income........................ (0.01) -- -- -- --
Net realized gains........................................ (0.02) (0.05) -- (0.09) (0.07)
------ ------ ------ ------ ------
Total Distributions....................................... (0.41) (0.46) (0.43) (0.52) (0.49)
------ ------ ------ ------ ------
Net Asset Value, End of Period.............................. $ 9.91 $10.45 $10.30 $ 9.98 $10.04
====== ====== ====== ====== ======
TOTAL RETURN (EXCLUDES SALES CHARGE)........................ (1.15%) 5.96% 7.61% 4.71% 5.50%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)........................... $4,554 $4,870 $4,664 $3,823 $3,927
Ratio of expenses to average net assets..................... 0.98% 0.82% 0.69% 0.69% 0.68%
Ratio of net investment income to average net assets........ 3.85% 3.89% 4.19% 4.31% 3.98%
Ratio of expenses to average net assets*.................... 1.26% 1.26% 1.29% 1.30% 1.04%
Portfolio turnover rate**................................... 14% 11% 29% 34% 80%
</TABLE>
<TABLE>
<C> <S>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED
AND/OR REIMBURSED. IF SUCH VOLUNTARY FEE REDUCTIONS AND/OR
REIMBURSEMENTS HAD NOT OCCURRED, THE RATIO 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.
</TABLE>
FINANCIAL HIGHLIGHTS, CLASS B
<TABLE>
<CAPTION>
FOR THE YEAR ENDED APRIL 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period........................ $10.46 $10.30 $ 9.98 $10.04 $ 9.98
------ ------ ------ ------ ------
Investment Activities
Net investment income..................................... 0.33 0.36 0.38 0.37 0.34
Net realized and unrealized gains (losses) from
investments............................................. (0.51) 0.21 0.32 0.03 0.13
------ ------ ------ ------ ------
Total from Investment Activities.......................... (0.18) 0.57 0.70 0.40 0.47
------ ------ ------ ------ ------
Distributions
Net investment income..................................... (0.33) (0.36) (0.38) (0.37) (0.34)
In excess of net investment income........................ (0.01) -- -- -- --
Net realized gains........................................ (0.02) (0.05) -- (0.09) (0.07)
------ ------ ------ ------ ------
Total Distributions....................................... (0.36) (0.41) (0.38) (0.46) (0.41)
------ ------ ------ ------ ------
Net Asset Value, End of Period.............................. $ 9.92 $10.46 $10.30 $ 9.98 $10.04
====== ====== ====== ====== ======
TOTAL RETURN (EXCLUDES REDEMPTION CHARGE)................... (1.64%) 5.53% 7.09% 4.11% 4.72%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)........................... $ 449 $ 570 $ 511 $ 430 $ 393
Ratio of expenses to average net assets..................... 1.48% 1.32% 1.18% 1.27% 1.44%
Ratio of net investment income to average net assets........ 3.34% 3.38% 3.70% 3.73% 3.30%
Ratio of expenses to average net assets*.................... 1.76% 1.76% 1.78% 1.88% 1.80%
Portfolio turnover rate**................................... 14% 11% 29% 34% 80%
</TABLE>
<TABLE>
<C> <S>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED
AND/OR REIMBURSED. IF SUCH VOLUNTARY FEE REDUCTIONS AND/OR
REIMBURSEMENTS HAD NOT OCCURRED, THE RATIO 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.
</TABLE>
CONTINUED
45
<PAGE>
CENTURA FUNDS, INC.
NORTH CAROLINA TAX-FREE BOND FUND
Selected data for a share outstanding throughout the period indicated
FINANCIAL HIGHLIGHTS, CLASS C
<TABLE>
<CAPTION>
FOR THE YEAR ENDED APRIL 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period........................ $ 10.45 $ 10.30 $ 9.98 $ 10.04 $ 9.98
------- ------- ------- ------- -------
Investment Activities
Net investment income..................................... 0.41 0.43 0.46 0.46 0.44
Net realized and unrealized gains (losses) from
investments............................................. (0.51) 0.20 0.32 0.03 0.13
------- ------- ------- ------- -------
Total from Investment Activities.......................... (0.10) 0.63 0.78 0.49 0.57
------- ------- ------- ------- -------
Distributions
Net investment income..................................... (0.41) (0.43) (0.46) (0.46) (0.44)
In excess of net investment income........................ (0.01) -- -- -- --
Net realized gains........................................ (0.02) (0.05) -- (0.09) (0.07)
------- ------- ------- ------- -------
Total Distributions....................................... (0.44) (0.48) (0.46) (0.55) (0.51)
------- ------- ------- ------- -------
Net Asset Value, End of Period.............................. $ 9.91 $ 10.45 $ 10.30 $ 9.98 $ 10.04
======= ======= ======= ======= =======
TOTAL RETURN................................................ (0.90%) 6.22% 7.89% 4.97% 5.78%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)........................... $32,461 $39,519 $37,456 $32,159 $37,009
Ratio of expenses to average net assets..................... 0.73% 0.56% 0.44% 0.44% 0.44%
Ratio of net investment income to average net assets........ 4.09% 4.15% 4.44% 4.56% 4.32%
Ratio of expenses to average net assets*.................... 0.76% 0.76% 0.79% 0.80% 0.80%
Portfolio turnover rate**................................... 14% 11% 29% 34% 80%
</TABLE>
<TABLE>
<C> <S>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED
AND/OR REIMBURSED. IF SUCH VOLUNTARY FEE REDUCTIONS AND/OR
REIMBURSEMENTS HAD NOT OCCURRED, THE RATIO 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.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
46
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
MONEY MARKET FUND APRIL 30, 2000
<TABLE>
<CAPTION>
COMMERCIAL PAPER (74.0%)
PRINCIPAL AMORTIZED
AMOUNT COST
------------ -------------
<S> <C> <C>
AUTOMOTIVE (3.0%)
DaimlerChrysler Corp., 5.75%,
5/17/00......................... $ 4,000,000 $ 3,989,778
------------
BANKING & FINANCIAL SERVICES (23.6%)
American Express Co., 6.02%,
5/25/00......................... 2,000,000 1,991,973
American Express Co., 5.87%,
6/6/00.......................... 1,500,000 1,491,195
Enterprise Funding Co., 6.08%,
6/5/00 (b)...................... 1,500,000 1,491,133
Enterprise Funding Co., 6.08%,
6/20/00 (b)..................... 2,000,000 1,983,111
First Data Corp., 6.00%,
5/23/00......................... 2,000,000 1,992,667
Ford Motor Credit Corp., 6.01%,
5/22/00......................... 3,000,000 2,989,483
Ford Motor Credit Corp., 5.72%,
7/10/00......................... 2,000,000 1,977,756
General Electric Capital Corp.,
5.92%, 10/10/00................. 1,000,000 973,360
General Electric Capital Corp.,
5.95%, 10/20/00................. 1,000,000 971,572
General Electric Capital Corp.,
6.00%, 10/27/00................. 1,000,000 970,167
General Motors Acceptance Corp.,
5.88%, 5/15/00.................. 3,000,000 2,993,140
Goldman Sachs Co., 5.91%,
5/1/00.......................... 1,500,000 1,500,000
Goldman Sachs Co., 5.91%,
5/12/00......................... 2,000,000 1,996,388
Kitty Hawk Funding, 5.91%,
5/3/00 (b)...................... 2,000,000 1,999,343
Salomon Smith Barney Holdings Co.,
5.93%, 5/5/00................... 3,000,000 2,998,024
Three Pillars Funding Corp.,
6.06%, 5/10/00 (b).............. 3,000,000 2,995,455
------------
31,314,767
------------
CHEMICALS (3.4%)
E.I. du Pont de Nemours & Co.,
5.75%, 5/2/00................... 1,000,000 999,840
E.I. du Pont de Nemours & Co.,
5.87%, 6/2/00................... 1,000,000 994,782
Monsanto Co., 6.07%, 6/8/00....... 2,500,000 2,483,982
------------
4,478,604
------------
COMPUTER INDUSTRY (5.2%)
IBM Corp., 5.90%, 5/26/00......... 4,000,000 3,983,611
Lucent Technologies, 6.04%,
6/12/00......................... 3,000,000 2,978,860
------------
6,962,471
------------
CONSUMER GOODS AND SERVICES (3.0%)
Proctor & Gamble Co., 6.09%,
5/24/00......................... 2,000,000 1,992,218
Proctor & Gamble Co., 6.02%,
6/9/00.......................... 2,000,000 1,986,957
------------
3,979,175
------------
ENERGY (6.0%)
Chevron Corp., 6.02%, 5/23/00..... 2,000,000 1,992,642
Duke Energy Corp., 5.98%,
5/8/00.......................... 2,000,000 1,997,674
Duke Energy Corp., 5.84%,
5/19/00......................... 2,000,000 1,994,160
<CAPTION>
COMMERCIAL PAPER, CONTINUED:
PRINCIPAL AMORTIZED
AMOUNT COST
------------ -------------
<S> <C> <C>
Emerson Electric, 6.00%,
5/17/00......................... $ 2,000,000 $ 1,994,667
------------
7,979,143
------------
ENTERTAINMENT (2.2%)
Walt Disney Co., 5.98%, 5/15/00... 2,930,000 2,923,186
------------
FOOD AND BEVERAGES (10.6%)
Coca Cola Co., 5.97%, 5/30/00..... 4,000,000 3,980,763
H.J. Heinz Corp., 6.03%,
5/16/00......................... 4,200,000 4,189,448
Pepsico, Inc., 6.00%, 5/1/00...... 4,000,000 4,000,000
Sara Lee Corp., 5.86%, 6/29/00.... 2,000,000 1,980,792
------------
14,151,003
------------
HEALTH CARE (5.8%)
Abbott Labs, 5.98%, 5/9/00........ 2,000,000 1,997,342
Becton, Dickinson & Co., 5.86%,
5/1/00 (b)...................... 1,500,000 1,500,000
Becton, Dickinson & Co., 6.18%,
6/15/00......................... 2,225,000 2,207,812
Glaxo Wellcome PLC, 6.05%, 6/13/00
(b)............................. 2,000,000 1,985,547
------------
7,690,701
------------
MEDIA (2.2%)
Gannett Co., 6.05%, 6/12/00....... 3,000,000 2,978,820
------------
TELECOMMUNICATIONS (3.0%)
AT&T Corp., 5.98%, 5/4/00......... 1,500,000 1,499,253
AT&T Corp., 5.88%, 5/8/00......... 2,500,000 2,497,141
------------
3,996,394
------------
TRANSPORTATION & SHIPPING (3.7%)
United Parcel Services, 5.97%,
5/8/00.......................... 3,000,000 2,996,518
United Parcel Services, 5.88%,
6/19/00......................... 2,000,000 1,983,993
------------
4,980,511
------------
UTILITIES (2.3%)
National Rural Utilities, 6.00%,
5/2/00.......................... 3,000,000 2,999,500
------------
TOTAL COMMERCIAL PAPER
(Amortized Cost $98,424,053).................... 98,424,053
------------
FEDERAL HOME LOAN BANK (15.8%)
5.88%, 5/1/00..................... 10,000,000 10,000,001
5.15%, 5/10/00.................... 610,000 609,892
5.10%, 5/11/00.................... 2,000,000 1,999,564
6.02%, 6/13/00.................... 2,620,000 2,601,912
6.04%, 6/21/00.................... 1,000,000 1,000,397
6.01%, 7/5/00..................... 2,000,000 1,979,164
5.14%, 7/20/00.................... 2,895,000 2,887,223
------------
21,078,153
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (5.6%)
5.83%, 5/18/00.................... 1,500,000 1,496,083
6.14%, 6/22/00.................... 2,000,000 1,983,216
6.14%, 7/6/00..................... 2,000,000 1,978,697
</TABLE>
CONTINUED
47
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
MONEY MARKET FUND APRIL 30, 2000
<TABLE>
<CAPTION>
COMMERCIAL PAPER, CONTINUED:
PRINCIPAL AMORTIZED
AMOUNT COST
------------ -------------
<S> <C> <C>
6.36%, 8/16/00.................... $ 2,000,000 $ 2,002,420
------------
7,460,416
------------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGES (Amortized
Cost $28,538,569) 28,538,569
------------
<CAPTION>
INVESTMENT COMPANIES (4.8%)
MARKET
SHARES VALUE
------------ -------------
<S> <C> <C>
Goldman Sachs Financial Square
Prime Money Market Fund......... 4,024,809 4,024,809
Provident Institutional Temporary
Investment Fund................. 2,342,854 2,342,854
------------
TOTAL INVESTMENT COMPANIES
(Cost $6,367,663)............................... 6,367,663
------------
TOTAL INVESTMENTS
(Amortized Cost $133,330,285)(a) -- 100.2%...... 133,330,285
Liabilities in excess of other assets -- (0.2)%... (222,340)
------------
NET ASSETS -- 100.0% $133,107,945
============
</TABLE>
---------
<TABLE>
<C> <S>
(a) Cost for federal income tax and financial reporting purposes
are the same.
(b) Security exempt from registration under Rule 144A of the
Securities Act of 1933, as amended. These securities may be
resold in transactions exempt from registration, normally to
qualified institutional buyers. Securities have been deemed
to be liquid based on procedures approved by the Board of
Directors.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
48
<PAGE>
CENTURA FUNDS, INC.
MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at value (cost
$133,330,285)...................... $133,330,285
Interest and dividends receivable.... 414,984
Deferred organization costs.......... 19,411
Prepaid expenses..................... 9,619
------------
TOTAL ASSETS....................... 133,774,299
LIABILITIES:
Dividends payable.................... $599,948
Payable for capital shares
redeemed........................... 7,566
Accrued expenses and other payables:
Investment advisory fees........... 2,616
Administration fees................ 645
Distribution fees--Class A......... 14,130
Service fees--Class A.............. 10,362
Other.............................. 31,087
--------
TOTAL LIABILITIES.................. 666,354
------------
NET ASSETS:
Capital.............................. 133,117,433
Accumulated net realized loss from
investment transactions............ (9,488)
------------
NET ASSETS........................... $133,107,945
============
Class A
Net Assets......................... $ 55,063,477
Shares............................. 55,067,678
Offering and redemption price per
share............................ $ 1.00
============
Class C
Net Assets......................... $ 78,044,468
Shares............................. 78,049,755
Offering and redemption price per
share............................ $ 1.00
============
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED APRIL 30, 2000
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest income...................... $ 5,838,648
Dividend income...................... 292,612
------------
TOTAL INCOME....................... 6,131,260
EXPENSES:
Investment advisory fees............. $312,754
Administration fees.................. 157,461
Distribution fees--Class A........... 207,710
Service fees--Class A................ 103,853
Custodian fees....................... 27,314
Fund accounting fees................. 38,185
Transfer agent fees.................. 34,006
Other................................ 84,204
--------
Total expenses before voluntary fee
reductions or reimbursements..... 965,487
Expenses voluntarily reduced or
reimbursed....................... (439,947)
------------
Net Expenses....................... 525,540
------------
NET INVESTMENT INCOME................ 5,605,720
------------
REALIZED LOSS FROM INVESTMENTS:
Net realized loss from investment
transactions....................... (9,488)
------------
Change in net assets resulting from
operations......................... $ 5,596,232
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
49
<PAGE>
CENTURA FUNDS, INC.
MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
APRIL 30, APRIL 30,
2000 1999 (A)
------------ -------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income..................................... $ 5,605,720 $ 2,593,267
Net realized losses from investment transactions.......... (9,488) --
------------ -------------
Change in net assets resulting from operations.............. 5,596,232 2,593,267
------------ -------------
DIVIDENDS TO CLASS A SHAREHOLDERS:
From net investment income................................ (2,037,325) (616)
DIVIDENDS TO CLASS C SHAREHOLDERS:
From net investment income................................ (3,568,395) (2,592,651)
------------ -------------
Change in net assets from shareholder dividends............. (5,605,720) (2,593,267)
------------ -------------
Change in net assets from capital transactions.............. 68,905,851 64,211,582
------------ -------------
Change in net assets........................................ 68,896,363 64,211,582
NET ASSETS:
Beginning of period....................................... 64,211,582 --
------------ -------------
End of period............................................. $133,107,945 $ 64,211,582
============ =============
</TABLE>
---------
<TABLE>
<C> <S>
(a) For the period from June 1, 1998 (commencement of
operations) to April 30, 1999.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
50
<PAGE>
CENTURA FUNDS, INC.
MONEY MARKET FUND
Selected data for a share outstanding throughout the period indicated
FINANCIAL HIGHLIGHTS, CLASS A
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
APRIL 30, APRIL 30,
2000 1999 (A)
----------- -------------
<S> <C> <C>
Net Asset Value, Beginning of Period........................ $ 1.00 $ 1.00
------- ------
Investment Activities
Net investment income..................................... 0.046 0.038
------- ------
Total from Investment Activities.......................... 0.046 0.038
------- ------
Dividends
Net investment income..................................... (0.046) (0.038)
------- ------
Total Dividends........................................... (0.046) (0.038)
------- ------
Net Asset Value, End of Period.............................. $ 1.00 $ 1.00
======= ======
TOTAL RETURN................................................ 4.75% 3.91%(c)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)........................... $55,063 $ 27
Ratio of expenses to average net assets..................... 0.83% 0.92%(b)
Ratio of net investment income to average net assets........ 4.90% 4.15%(b)
Ratio of expenses to average net assets*.................... 1.33% 1.46%(b)
</TABLE>
<TABLE>
<C> <S>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED
AND/OR REIMBURSED. IF SUCH VOLUNTARY FEE REDUCTIONS AND/OR
REIMBURSEMENTS HAD NOT OCCURRED, THE RATIO WOULD HAVE BEEN
AS INDICATED.
(a) FOR THE PERIOD FROM JUNE 1, 1998 (COMMENCEMENT OF
OPERATIONS) TO APRIL 30, 1999.
(b) ANNUALIZED.
(c) NOT ANNUALIZED.
</TABLE>
FINANCIAL HIGHLIGHTS, CLASS C
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
APRIL 30, APRIL 30,
2000 1999 (A)
----------- -------------
<S> <C> <C>
Net Asset Value, Beginning of Period........................ $ 1.00 $ 1.00
------- -------
Investment Activities
Net investment income..................................... 0.052 0.046
------- -------
Total from Investment Activities.......................... 0.052 0.046
------- -------
Dividends
Net investment income..................................... (0.052) (0.046)
------- -------
Total Dividends........................................... (0.052) (0.046)
------- -------
Net Asset Value, End of Period.............................. $ 1.00 $ 1.00
======= =======
TOTAL RETURN................................................ 5.37% 4.70%(c)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)........................... $78,044 $64,184
Ratio of expenses to average net assets..................... 0.27% 0.20%(b)
Ratio of net investment income to average net assets........ 5.27% 5.00%(b)
Ratio of expenses to average net assets*.................... 0.61% 0.72%(b)
</TABLE>
<TABLE>
<C> <S>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED
AND/OR REIMBURSED. IF SUCH VOLUNTARY FEE REDUCTIONS AND/OR
REIMBURSEMENTS HAD NOT OCCURRED, THE RATIO WOULD HAVE BEEN
AS INDICATED.
(a) FOR THE PERIOD FROM JUNE 1, 1998 (COMMENCEMENT OF
OPERATIONS) TO APRIL 30, 1999.
(b) ANNUALIZED.
(c) NOT ANNUALIZED.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
51
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2000
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. The Company was organized as a Maryland corporation on March 1,
1994. At April 30, 2000 the Company consisted of seven separate investment
portfolios: Centura Large Cap Equity Fund, Centura Mid Cap Equity Fund,
Centura Small Cap Equity Fund, Centura Government Income Fund, Centura
Quality Income Fund which commenced operations on May 11, 1999, Centura
North Carolina Tax-Free Bond Fund and Centura Money Market Fund
(individually, the "Fund", and collectively, the "Funds").
The Funds, except the Money Market Fund, offer three classes of shares known
as Class A, Class B and Class C shares. At April 30, 2000, the Quality Income
Fund had no Class B shares outstanding and therefore no operations for such
shares are shown. 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 Large Cap Equity Fund, Mid Cap Equity Fund, and Small Cap Equity Fund;
2.75% for the Government Income Fund, Quality Income Fund and North Carolina
Tax-Free Bond Fund. Class B shares are offered at net asset value but are
subject to a contingent deferred sales charge ("CDSC"). In addition, Class A
and Class B shares pay ongoing distribution fees. 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.
The Funds' investment objectives are as follows:
LARGE CAP EQUITY FUND -- Long-term capital appreciation. The Fund normally
invests at least 65% of its total assets in equity securities of large U.S.
companies each having $3 billion or more in market capitalization at the time
of purchase by the Funds. Investments include common stocks, convertible
preferred stocks and convertible bonds, notes and debentures.
MID CAP EQUITY FUND -- Long-term capital appreciation. The Fund normally
invests at least 65% of its total assets in equity securities of mid-sized
companies that fall within the range of companies in the S&P MidCap 400
Composite Price Index at the time of purchase by the Fund. Investments are
primarily in common stocks, but also may include convertible preferred stocks
and convertible bonds, notes and debentures.
SMALL CAP EQUITY FUND -- Long-term capital appreciation. The Fund normally
invests at least 65% of its total assets in the equity securities of small
companies. Small companies are defined as those with market capitalizations
that fall within the range of the companies in the S&P SmallCap 600 Index at
the time of purchase by the Fund. Investments are primarily common stocks but
also include preferred stocks and securities convertible into stock.
GOVERNMENT INCOME FUND -- Relatively high current income consistent with
relative stability of principal and safety. The Fund normally invests at
least 65% of its total assets in U.S. Government obligations (those that are
issued or guaranteed by the U.S. Government or its agencies or
instrumentalities). In general, its investments will have maximum maturities
of ten years.
QUALITY INCOME FUND -- Current income and capital appreciation. The Fund
normally invests at least 65% of its total assets in U.S. Government
obligations (those that are issued or guaranteed by the U.S. Government or
its agencies or instrumentalities) and corporate debt obligations as well as
other fixed income securities such as asset backed securities, mortgage
backed securities and bank obligations. At least 70% of the Fund's fixed
income securities will be rated in one of the three highest categories by
nationally recognized statistical rating organizations or unrated securities
of comparable quality.
NORTH CAROLINA TAX-FREE BOND FUND -- High current income that is free from
both federal income tax and North Carolina personal income tax, together with
relative safety of principal. The Fund invests primarily in obligations
issued by the State of North Carolina, its political subdivisions, and their
agencies and instrumentalities.
MONEY MARKET FUND -- As high a level of current income as is consistent with
preservation of capital and liquidity. The Fund invests in a broad range of
high quality, short-term, money market instruments that have remaining
maturities not exceeding 397 days. The Fund is required to maintain a
dollar-weighted average portfolio maturity no greater than 90 days.
CONTINUED
52
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
APRIL 30, 2000
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 accounting principles generally accepted in the United
States of America. 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.
SECURITY VALUATION:
Bonds and other fixed income securities (other than short-term obligations
but including listed issues) are valued on the basis of valuations furnished
by a pricing service, the use of which has been approved by the Funds' Board
of Directors. In making such valuations, the pricing service utilizes both
dealer-supplied valuations and electronic data processing techniques which
take into account appropriate factors such as institutional-size trading in
similar groups of securities, yield, quality, coupon rate, maturity, type of
issue, trading characteristics other than market data and without exclusive
reliance upon quoted prices or exchanges or over-the-counter prices, since
such valuations are believed to reflect more accurately the fair value of
such securities. Short-term debt obligations are valued at amortized cost,
which approximates market value, as approved by the Board of Directors. The
Money Market Fund reflects its securities at amortized cost, which
approximates market value, except for investments in other money market
funds, which are priced at net asset value.
The value of each equity security is based either on the last sale price on a
national securities exchange, or in the absence of recorded sales, at the
closing bid prices on such exchanges, or at the quoted bid price in the
over-the-counter market. Securities or other assets for which market
quotations are not readily available are valued at fair market value as
determined in good faith by or at the direction of the Board of Directors.
INVESTMENT TRANSACTIONS:
Security transactions in the Funds are accounted for on the date the
security is purchased or sold ("trade date"). Interest income is recognized
on the accrual basis and includes, where applicable, the amortization of
premium or discount. Dividend income is recorded on the ex-dividend date.
Securities gains and losses are calculated on the identified cost basis.
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, except for the Quality Income Fund
which was expensed as incurred.
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.
Expenses specific to a class are charged to that class.
FINANCIAL INSTRUMENTS:
Certain Funds may purchase and write (sell) put and call options on
securities, currencies and indices of securities (collectively, an
"underlying asset"). These transactions are to hedge against changes in
interest rates, security prices, currency fluctuations and other market
developments, or for purposes of earning additional income (i.e.
speculation).
The risk associated with purchasing an option is that the Funds pay a premium
whether or not the option is exercised. Additionally, the Funds bear the risk
of loss of premium and change in market value should the counterparty not
perform under the contract. Put and call options purchased are accounted for
in the same manner as other securities owned. The cost of securities acquired
through the exercise of call options is increased by the premiums paid. The
proceeds from securities sold through the exercise of put options are
decreased by the premiums paid.
In writing an option, the Funds contract with a specified counterparty to
purchase (written put option) or sell (written call option) a specified
quantity (notional amount) of an underlying asset at a specified price during
a specified period upon demand of the counterparty. The risk associated with
writing an option is that the Funds bear the market risk of an unfavorable
change in the price of an underlying asset, and may be required to buy or
sell an underlying asset under the contractual terms of the option at a price
CONTINUED
53
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
APRIL 30, 2000
different from the current market value. Written options involve financial
risk which may exceed amounts reflected in the accompanying financial
statements.
The table below reflects the Government Income Fund's activity in written
options, all of which were for purposes of earning additional income, during
the fiscal year. The Notional Amount column represents the notional amount of
underlying assets subject to such written options. The Premiums column
represents the premiums paid by the option counterparties to the Fund in
connection with entering into the written options. No other Funds engaged in
written option contracts during the year ended April 30, 2000.
WRITTEN OPTION ACTIVITIES FOR THE YEAR ENDED APRIL 30, 2000:
<TABLE>
<CAPTION>
PUT OPTIONS
------------------------
NOTIONAL
AMOUNT PREMIUMS
---------- ----------
<S> <C> <C>
Balance at beginning of year................................ 5,000,000 $ 19,922
Options exercised........................................... (5,000,000) (19,922)
---------- --------
Options outstanding at end of period........................ -- $ --
========== ========
</TABLE>
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.
For federal income tax purposes, the following Fund's had capital loss
carryforwards as of April 30, 2000, which are available to offset future
capital gains, if any:
<TABLE>
<CAPTION>
AMOUNT EXPIRES
----------- --------
<S> <C> <C>
Government Income Fund...................................... $1,208,439 2008
Quality Income Fund......................................... 301,899 2008
Money Market Fund........................................... 217 2008
</TABLE>
DIVIDENDS TO SHAREHOLDERS:
The Large Cap Equity Fund, Mid Cap Equity Fund, and Small Cap Equity Fund
declare and pay dividends of substantially all of their net investment
income monthly. The Government Income Fund, Quality Income Fund, North
Carolina Tax-Free Bond Fund and Money 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.
CONTINUED
54
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
APRIL 30, 2000
As of April 30, 2000, the following reclassifications have been made to
increase (decrease) such accounts with offsetting adjustments made to
capital:
<TABLE>
<CAPTION>
ACCUMULATED ACCUMULATED
UNDISTRIBUTED NET REALIZED
NET INVESTMENT GAIN/(LOSS) ON
INCOME INVESTMENTS
-------------- --------------
<S> <C> <C>
Large Cap Equity Fund....................................... $135,328 $(6,203,356)
Mid Cap Equity Fund......................................... 130,756 (2,077,518)
Small Cap Equity Fund....................................... 245,905 (245,905)
Quality Income Fund......................................... 4,068 --
</TABLE>
3. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
Centura Bank ("Advisor") serves as the Company's Investment Advisor and
custodian. Sovereign Advisers serves as sub-investment Advisor to the
Quality Income Fund. 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. For furnishing custodial
services, Centura Bank is paid a monthly fee with respect to the Funds at an
annual rate based on 0.025% of average daily net assets.
BISYS Fund Services, Inc. ("BISYS") serves as the Funds' administrator ("the
Administrator"), transfer agent, and fund accounting agent. Services provided
under the Administrative Services Contract include 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 Agreement include providing personnel and
facilities to perform shareholder servicing and transfer agency related
services. The terms of the Administrative Services Contract and Fund
Accounting Contract provide for annual fees based on a percentage of average
daily net assets. The Transfer Agency Agreement provides for a per account
fee in connection with shareholder servicing.
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 daily net assets
attributable to its Class A shares. Such fees may include a Service Fee
totaling up to 0.25% of the average daily 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. Currently, the Distributor has undertaken
to limit 12b-1 fees for Class A Shares to 0.30% for the Money Market Fund and
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 daily 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. Currently, the Distributor has undertaken to limit
12b-1 fees for class B shares to 0.75% for Government Income Fund, Quality
Income Fund and North Carolina Tax-Free Bond Fund.
CONTINUED
55
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
APRIL 30, 2000
For the year ended April 30, 2000, fees waived and reimbursed by the Advisor,
Administrator and Distributor are listed below:
<TABLE>
<CAPTION>
INVESTMENT ADVISORY FEES
---------------------------------- 12B-1 FEES
ANNUAL FEES AS VOLUNTARILY
A PERCENTAGE OF ADMINISTRATION REDUCED SERVICE FEES
AVERAGE DAILY FEES VOLUNTARILY FEES VOLUNTARILY ------------------- VOLUNTARILY
NET ASSETS REDUCED REDUCED CLASS A CLASS B REDUCED CLASS A
--------------- ---------------- ---------------- -------- -------- ----------------
<S> <C> <C> <C> <C> <C> <C>
Large Cap Equity
Fund............... 0.70% $ -- $ -- $35,650 $ -- $ --
Mid Cap Equity
Fund............... 0.70% -- -- 71,734 -- --
Small Cap Equity
Fund............... 0.70% -- -- 15,223 -- --
Government Income
Fund............... 0.30% -- -- 13,848 560 --
Quality Income
Fund*.............. 0.60% 5,854 -- 90 -- --
North Carolina Tax-
Free Bond Fund..... 0.35% 5,361 7,423 11,808 1,329 --
Money Market Fund.... 0.30% 204,281 124,631 80,495 -- 13,311
<CAPTION>
OTHER EXPENSES
VOLUNTARILY
REIMBURSED
---------------
<S> <C>
Large Cap Equity
Fund............... $ --
Mid Cap Equity
Fund............... --
Small Cap Equity
Fund............... --
Government Income
Fund............... --
Quality Income
Fund*.............. --
North Carolina Tax-
Free Bond Fund..... --
Money Market Fund.... 17,229
</TABLE>
------------
* For the period from May 11, 1999 (commencement of operations) to
April 30, 2000.
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 for the year ended April 30,
2000:
<TABLE>
<CAPTION>
DISTRIBUTOR CENTURA BANK
----------- -------------
<S> <C> <C>
Large Cap Equity Fund....................................... $1,162 $ 8,356
Mid Cap Equity Fund......................................... 474 10,451
Small Cap Equity Fund....................................... 172 2,886
Government Income Fund...................................... 56 607
North Carolina Tax-Free Bond Fund........................... 824 --
</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 for the year ended
April 30, 2000:
<TABLE>
<CAPTION>
DISTRIBUTOR CENTURA BANK
----------- -------------
<S> <C> <C>
Large Cap Equity Fund....................................... $2,367 $15,372
Mid Cap Equity Fund......................................... 1,192 16,535
Small Cap Equity Fund....................................... 273 3,252
Government Income Fund...................................... -- 388
Quality Income Fund *....................................... 4 --
</TABLE>
------------
* For the period from May 11, 1999 (commencement of operations) to
April 30, 2000.
4. CONCENTRATION OF CREDIT RISK
The North Carolina Tax-Free Bond Fund invests substantially all of its
assets in a non-diversified portfolio of tax-exempt 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.
CONTINUED
56
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
APRIL 30, 2000
The North Carolina Tax-Free Bond Fund had the following concentrations by
sector at April 30, 2000 (as a percentage of total investments):
<TABLE>
<S> <C>
General Obligation.......................................... 31.5%
Hospitals................................................... 21.4%
Utilities................................................... 19.9%
Certificates of Participation............................... 14.0%
Universities................................................ 4.1%
Housing..................................................... 5.1%
Recreational................................................ 2.7%
Airport..................................................... 1.3%
------
100.0%
======
</TABLE>
5. SECURITIES TRANSACTIONS
The cost of securities purchased and proceeds from securities sold
(excluding short-term securities) for the year ended April 30, 2000 were as
follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------- -------------
<S> <C> <C>
Large Cap Equity Fund....................................... $164,639,192 $117,743,104
Mid Cap Equity Fund......................................... 82,849,967 153,077,637
Small Cap Equity Fund....................................... 87,422,280 99,343,100
Government Income Fund...................................... 44,818,034 112,391,074
Quality Income Fund *....................................... 183,126,461 120,934,381
North Carolina Tax-Free Bond Fund........................... 5,484,779 9,682,077
</TABLE>
------------
* For the period from May 11, 1999 (commencement of operations) to
April 30, 2000.
6. CAPITAL SHARE TRANSACTIONS
The Company is authorized to issue 1.05 billion shares of capital stock with
a par value of $.001. Transactions in shares of the Funds are summarized
below:
CONTINUED
57
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
APRIL 30, 2000
<TABLE>
<CAPTION>
LARGE CAP EQUITY MID CAP EQUITY SMALL CAP EQUITY
FUND FUND FUND
---------------------------- ----------------------------- ---------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30, APRIL 30, APRIL 30, APRIL 30, APRIL 30,
2000 1999 2000 1999 2000 1999
------------ ------------ ------------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued.... $ 18,366,226 $ 816,895 $ 23,439,125 $ 1,806,499 $ 6,001,578 $ 1,244,625
Dividends reinvested........... 276,475 142,313 7,305,081 1,660,521 1,140,174 264,282
Cost of shares redeemed........ (4,038,784) (309,940) (12,693,729) (2,762,882) (3,240,141) (932,624)
------------ ------------ ------------- ------------ ------------ -----------
Class A capital transactions... $ 14,603,917 $ 649,268 $ 18,050,477 $ 704,138 $ 3,901,611 $ 576,283
------------ ------------ ------------- ------------ ------------ -----------
CLASS B
Proceeds from shares issued.... $ 3,980,071 $ 1,605,066 $ 1,236,786 $ 2,780,308 $ 262,005 $ 1,435,855
Dividends reinvested........... 116,388 229,546 3,984,051 2,276,470 830,828 427,617
Cost of shares redeemed........ (1,161,041) (201,825) (6,359,323) (3,103,277) (1,631,254) (842,111)
------------ ------------ ------------- ------------ ------------ -----------
Class B capital transactions... $ 2,935,418 $ 1,632,787 $ (1,138,486) $ 1,953,501 $ (538,421) $ 1,021,361
------------ ------------ ------------- ------------ ------------ -----------
CLASS C
Proceeds from shares issued.... $113,306,139 $ 72,619,940 $ 39,926,614 $ 28,727,345 $ 12,396,052 $10,883,038
Dividends reinvested........... 3,132,857 7,460,161 18,881,890 18,969,157 3,663,016 2,388,916
Cost of shares redeemed........ (82,824,997) (18,400,519) (111,440,207) (78,648,661) (26,186,102) (9,950,538)
------------ ------------ ------------- ------------ ------------ -----------
Class C capital transactions... $ 33,613,999 $ 61,679,582 $ (52,631,703) $(30,952,159) $(10,127,034) $ 3,321,416
------------ ------------ ------------- ------------ ------------ -----------
Net increase (decrease) from
capital transactions........... $ 51,153,334 $ 63,961,637 $ (35,719,712) $(28,294,520) $ (6,763,844) $ 4,919,060
============ ============ ============= ============ ============ ===========
SHARE TRANSACTIONS:
CLASS A
Issued......................... 1,310,974 64,084 1,545,411 119,307 461,636 93,816
Reinvested..................... 18,598 11,887 595,364 119,209 102,904 21,841
Redeemed....................... (274,440) (25,140) (889,630) (186,812) (254,254) (75,628)
------------ ------------ ------------- ------------ ------------ -----------
Change in Class A Shares....... 1,055,132 50,831 1,251,145 51,704 310,286 40,029
------------ ------------ ------------- ------------ ------------ -----------
CLASS B
Issued......................... 271,293 125,170 91,482 187,852 21,298 111,125
Reinvested..................... 7,918 19,271 337,057 167,222 76,786 35,754
Redeemed....................... (78,441) (16,271) (438,595) (215,399) (130,568) (69,687)
------------ ------------ ------------- ------------ ------------ -----------
Change in Class B Shares....... 200,770 128,170 (10,056) 139,675 (32,484) 77,192
------------ ------------ ------------- ------------ ------------ -----------
CLASS C
Issued......................... 7,816,777 5,804,044 2,933,964 1,924,313 986,472 872,066
Reinvested..................... 211,311 622,999 1,527,465 1,358,439 328,817 197,105
Redeemed....................... (5,694,408) (1,463,451) (7,492,265) (5,380,575) (2,036,699) (812,897)
------------ ------------ ------------- ------------ ------------ -----------
Change in Class C Shares....... 2,333,680 4,963,592 (3,030,836) (2,097,823) (721,410) 256,274
------------ ------------ ------------- ------------ ------------ -----------
Net increase (decrease) from
share transactions............. 3,589,582 5,142,593 (1,789,747) (1,906,444) (443,608) 373,495
============ ============ ============= ============ ============ ===========
</TABLE>
CONTINUED
58
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
APRIL 30, 2000
<TABLE>
<CAPTION>
QUALITY
GOVERNMENT INCOME INCOME NORTH CAROLINA TAX-FREE
FUND FUND BOND FUND
----------------------------- ------------- ---------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30, APRIL 30, APRIL 30, APRIL 30,
2000 1999 2000 (A) 2000 1999
------------- ------------ ------------- ------------ -----------
<S> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued................... $ 7,733,774 $ 285,888 $ 376,989 $ 215,992 $ 332,162
Dividends reinvested.......................... 285,180 34,263 6,908 182,289 204,388
Cost of shares redeemed....................... (4,042,854) (164,373) (135,660) (459,396) (400,229)
------------- ------------ ------------- ------------ -----------
Class A capital transactions.................. $ 3,976,100 $ 155,778 $ 248,237 $ (61,115) $ 136,321
------------- ------------ ------------- ------------ -----------
CLASS B
Proceeds from shares issued................... $ 82,167 $ 127,022 $ -- $ 57,245 $ 58,679
Dividends reinvested.......................... 9,232 9,923 -- 15,753 18,903
Cost of shares redeemed....................... (46,328) (68,139) -- (164,490) (25,919)
------------- ------------ ------------- ------------ -----------
Class B capital transactions.................. $ 45,071 $ 68,806 $ -- $ (91,492) $ 51,663
------------- ------------ ------------- ------------ -----------
CLASS C
Proceeds from shares issued................... $ 40,867,076 $ 34,025,484 $ 97,963,538 $ 8,977,205 $ 7,898,545
Dividends reinvested.......................... 2,097,378 6,333,808 898,945 120,445 195,600
Cost of shares redeemed....................... (114,867,763) (50,904,535) (27,492,041) (14,166,521) (6,616,483)
------------- ------------ ------------- ------------ -----------
Class C capital transactions.................. $ (71,903,309) $(10,545,243) $ 71,370,442 $ (5,068,871) $ 1,477,662
------------- ------------ ------------- ------------ -----------
Net increase (decrease) from capital
transactions.................................. $ (67,882,138) $(10,320,659) $ 71,618,679 $ (5,221,478) $ 1,665,646
============= ============ ============= ============ ===========
SHARE TRANSACTIONS:
CLASS A
Issued........................................ 783,712 28,191 38,602 21,213 31,533
Reinvested.................................... 29,185 3,348 715 18,069 19,455
Redeemed...................................... (415,464) (16,108) (14,029) (45,807) (38,041)
------------- ------------ ------------- ------------ -----------
Change in Class A Shares...................... 397,433 15,431 25,288 (6,525) 12,947
------------- ------------ ------------- ------------ -----------
CLASS B
Issued........................................ 8,386 12,342 -- 5,589 5,555
Reinvested.................................... 943 971 -- 1,559 1,798
Redeemed...................................... (4,762) (6,665) -- (16,399) (2,454)
------------- ------------ ------------- ------------ -----------
Change in Class B Shares...................... 4,567 6,648 -- (9,251) 4,899
------------- ------------ ------------- ------------ -----------
CLASS C
Issued........................................ 4,163,117 3,323,824 10,065,921 891,212 754,342
Reinvested.................................... 213,420 618,807 92,808 11,968 18,519
Redeemed...................................... (11,700,031) (4,982,025) (2,836,652) (1,409,004) (630,036)
------------- ------------ ------------- ------------ -----------
Change in Class C Shares...................... (7,323,494) (1,039,394) 7,322,077 (505,824) 142,825
------------- ------------ ------------- ------------ -----------
Net increase from share transactions............ (6,921,494) (1,017,315) 7,347,365 (521,600) 160,671
============= ============ ============= ============ ===========
</TABLE>
(a) For the period from May 11, 1999 (commencement of operations) to April 30,
2000.
CONTINUED
59
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
APRIL 30, 2000
<TABLE>
<CAPTION>
MONEY MARKET
FUND
------------------------------
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
APRIL 30, APRIL 30,
2000 1999 (A)
------------- -------------
<S> <C> <C>
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued............................... $ 201,692,061 $ 47,429
Dividends reinvested...................................... 1,767,213 564
Cost of shares redeemed................................... (148,418,734) (20,855)
------------- -------------
Class A capital transactions.............................. $ 55,040,540 $ 27,138
------------- -------------
CLASS C
Proceeds from shares issued............................... $ 224,964,687 $ 204,406,231
Dividends reinvested...................................... 11,448 --
Cost of shares redeemed................................... (211,110,824) (140,221,787)
------------- -------------
Class C capital transactions.............................. $ 13,865,311 $ 64,184,444
------------- -------------
Net increase from capital transactions...................... $ 68,905,851 $ 64,211,582
============= =============
SHARE TRANSACTIONS:
CLASS A
Issued.................................................... 201,692,061 47,429
Reinvested................................................ 1,767,213 564
Redeemed.................................................. (148,418,734) (20,855)
------------- -------------
Change in Class A Shares.................................. 55,040,540 27,138
------------- -------------
CLASS C
Issued.................................................... 224,964,687 204,406,231
Reinvested................................................ 11,448 --
Redeemed.................................................. (211,110,824) (140,221,787)
------------- -------------
Change in Class C Shares.................................. 13,865,311 64,184,444
------------- -------------
Net increase from share transactions........................ 68,905,851 64,211,582
============= =============
</TABLE>
(a) For the period from June 1, 1998 (commencement of operations) to April 30,
1999.
CONTINUED
60
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
APRIL 30, 2000
7. FEDERAL INCOME TAX INFORMATION (UNAUDITED) -- During theyear ended April 30,
2000, the North Carolina Tax-Free Bond Fund paid tax-exempt income
distributions in the amount of $1,693,193.
During the year ended April 30, 2000, long-term capital gain distributions
declared and dividends received deduction available to corporations are as
follows:
<TABLE>
<CAPTION>
DIVIDENDS
LONG-TERM RECEIVED
20% DEDUCTION
----------- ----------
<S> <C> <C>
Large Cap Equity Fund....................................... $ 1,461,954 52.20%
Mid Cap Equity Fund......................................... 16,919,914 15.89%
Small Cap Equity Fund....................................... 2,029,469 3.77%
Government Income Fund...................................... 284,982 --
North Carolina Tax-Free Bond Fund........................... 83,184 --
</TABLE>
END OF NOTES TO FINANCIAL STATEMENTS.
61
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Shareholders and Board of Directors of
Centura Funds, Inc.:
We have audited the accompanying statements of assets and liabilities of Centura
Funds, Inc.--Large Cap Equity Fund, Mid Cap Equity Fund, Small Cap Equity Fund,
Government Income Fund, Quality Income Fund, North Carolina Tax-Free Bond Fund,
and Money Market Fund (the Funds), including the schedules of portfolio
investments, as of April 30, 2000, and the related statements of operations for
the period then ended, and the statements of changes in net assets and the
financial highlights for each of the two years in the period then ended (period
from May 11, 1999 through April 30, 2000 for the Quality Income Fund). These
financial statements and the financial highlights are the responsibility of the
Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits. The
accompanying financial highlights for the periods ended April 30, 1998 and prior
were audited by other auditors whose report thereon dated May 22, 1998 expressed
an unqualified opinion on the financial statements.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included verification of
securities owned as of April 30, 2000, by examination, correspondence with
brokers and other appropriate audit procedures. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the aforementioned funds comprising the Centura Funds, Inc. as of April 30,
2000, the results of their operations for the period then ended, and the changes
in their net assets and the financial highlights for each of the two years in
the period then ended (period from May 11, 1999 through April 30, 2000 for the
Quality Income Fund), in conformity with accounting principles generally
accepted in the United States of America.
KPMG LLP
Columbus, Ohio
June 21, 2000
62
<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
KPMG LLP
TWO NATIONWIDE PLAZA
COLUMBUS, OHIO 43215
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, GUARANTEED 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. ALTHOUGH THE FUND SEEKS TO MAINTAIN VALUE OF YOUR
INVESTMENT IN THE MONEY MARKET FUND AT $1 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE MONEY MARKET FUND.
6/00
