<PAGE>
[CENTURA FUNDS 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
SEMI-ANNUAL REPORT
OCTOBER 31, 2000
<PAGE>
TABLE OF CONTENTS
Message From Your President
Page 2
Large Cap Equity Fund
Page 3
Mid Cap Equity Fund
Page 9
Small Cap Equity Fund
Page 16
Government Income Fund
Page 23
Quality Income Fund
Page 28
North Carolina Tax-Free Bond Fund
Page 34
Money Market Fund
Page 40
Notes to Financial Statements
Page 44
1
<PAGE>
--------------------------------------------------------------------------------
[CENTURA FUNDS LOGO]
October 31, 2000
DEAR SHAREHOLDER:
We are pleased to present you this semi-annual report for Centura Funds.
This report provides you pertinent information about Centura Funds from May 1
through October 31, 2000. It includes:
- Schedules of Investments
- Statements of Assets and Liabilities
- Statements of Operations
- Statements of Changes in Net Assets
- Notes to Financial Statements
- Financial Highlights
Please feel free to call us about any questions you may have about this
report, or Centura Funds at 1-800-442-3688. We welcome your feedback and
suggestions. Thank you for your confidence and support as we continue to adhere
to our sound investment principles.
Respectfully,
/s/ Walter B. Grimm
Walter B. Grimm
President
2
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
LARGE CAP EQUITY FUND OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCKS (98.0%)
--------------------------------------------------------------------------------
MARKET
SHARES VALUE
---------- ------------
<S> <C> <C>
AIRLINES (0.2%)
AMR Corp. (b)......................................... 11,000 $ 360,250
------------
AUTO PARTS (0.3%)
Delphi Automotive Systems Corp........................ 35,000 549,063
------------
AUTOMOBILES & TRUCKS (0.8%)
Ford Motor Co......................................... 40,000 1,045,000
General Motors Corp................................... 10,000 621,250
------------
1,666,250
------------
BANKING & FINANCIAL SERVICES (12.7%)
American Express Co................................... 25,000 1,500,000
Bank of New York Co., Inc............................. 30,000 1,726,875
BankAmerica Corp...................................... 40,000 1,922,500
Capital One Financial Corp............................ 10,000 631,250
Charles Schwab Corp................................... 25,000 878,125
Chase Manhattan Corp.................................. 25,000 1,137,500
Citigroup, Inc........................................ 93,333 4,911,648
Fannie Mae............................................ 25,000 1,925,000
Fifth Third Bancorp................................... 22,500 1,155,938
FleetBoston Financial Corp............................ 30,000 1,140,000
Lehman Brothers Holdings, Inc......................... 10,000 645,000
MBNA Corp............................................. 40,000 1,502,500
Mellon Financial Corp................................. 30,000 1,447,500
Morgan Stanley Dean Witter & Co....................... 20,000 1,606,250
Northern Trust Corp................................... 15,000 1,280,625
State Street Corp..................................... 10,000 1,247,400
T. Rowe Price Assoc., Inc............................. 10,000 468,125
Wells Fargo & Co...................................... 45,000 2,084,062
------------
27,210,298
------------
CHEMICALS (1.1%)
Dow Chemical Co....................................... 24,000 735,000
E.I. du Pont de Nemours & Co.......................... 25,000 1,134,375
Union Carbide Corp.................................... 12,000 516,000
------------
2,385,375
------------
COMMERCIAL SERVICES (0.3%)
Convergys Corp. (b)................................... 15,000 653,437
------------
COMPUTER INDUSTRY (21.7%)
Adobe Systems, Inc.................................... 20,000 1,521,250
America Online, Inc. (b).............................. 35,000 1,765,050
Cisco Systems, Inc. (b)............................... 140,000 7,542,499
Citrix Systems, Inc. (b).............................. 50,000 1,106,250
Dell Computer Corp. (b)............................... 70,000 2,065,000
EMC Corp. (b)......................................... 50,000 4,453,125
Hewlett-Packard Co.................................... 56,000 2,600,500
Intel Corp............................................ 130,000 5,827,656
International Business Machines Corp.................. 40,000 3,940,000
Microsoft Corp. (b)................................... 103,162 7,105,283
Oracle Corp. (b)...................................... 120,000 3,960,000
Sun Microsystems, Inc. (b)............................ 34,000 3,769,750
Yahoo!, Inc. (b)...................................... 15,000 879,375
------------
46,535,738
------------
<CAPTION>
COMMON STOCKS, CONTINUED:
--------------------------------------------------------------------------------
MARKET
SHARES VALUE
---------- ------------
<S> <C> <C>
CONSUMER GOODS AND SERVICES (2.6%)
Colgate-Palmolive Co.................................. 24,000 $ 1,410,240
Gillette Co........................................... 20,000 697,500
Kimberly-Clark Corp................................... 20,000 1,320,000
Procter & Gamble Co................................... 20,000 1,428,750
Ralston Purina Co..................................... 25,000 606,250
------------
5,462,740
------------
DISTRIBUTION/WHOLESALE (0.6%)
SYSCO Corp............................................ 25,000 1,304,688
------------
DIVERSIFIED OPERATIONS (7.6%)
General Electric Co................................... 180,000 9,866,261
Honeywell International, Inc.......................... 15,000 807,188
Illinois Tool Works, Inc.............................. 12,000 666,750
Minnesota Mining & Manufacturing Co................... 10,000 966,250
Tyco International Ltd................................ 45,000 2,550,938
United Technologies Corp.............................. 20,000 1,396,250
------------
16,253,637
------------
ELECTRONIC COMPONENTS/INSTRUMENTS (4.6%)
Agilent Technologies (b).............................. 18,772 869,378
Applied Materials, Inc. (b)........................... 25,000 1,328,125
KLA-Tencor Corp. (b).................................. 25,000 845,313
LSI Logic Corp. (b)................................... 20,000 657,500
Micron Technology, Inc................................ 30,000 1,042,500
SDL, Inc.............................................. 5,000 1,296,250
Solectron Corp. (b)................................... 35,000 1,540,000
Texas Instruments, Inc................................ 45,000 2,207,812
------------
9,786,878
------------
ENERGY (7.8%)
Coastal Corp.......................................... 20,000 1,508,750
Enron Corp............................................ 25,000 2,051,563
Exxon Mobil Corp...................................... 65,000 5,797,209
Halliburton Co........................................ 20,000 741,250
Kerr-McGee Corp....................................... 10,000 653,125
Royal Dutch Petroleum Co.............................. 40,000 2,374,999
Schlumberger Ltd...................................... 15,000 1,141,875
Transocean Sedco Forex, Inc........................... 2,899 153,647
Unocal Corp........................................... 15,000 511,875
USX-Marathon Group.................................... 27,000 734,063
Williams Cos., Inc.................................... 25,000 1,045,313
------------
16,713,669
------------
ENTERTAINMENT (1.3%)
Comcast Corp., Special Class A (b).................... 30,000 1,222,500
Time Warner, Inc...................................... 20,000 1,518,200
------------
2,740,700
------------
FOOD AND BEVERAGES (3.3%)
Anheuser Busch Co., Inc............................... 30,000 1,372,500
Coca Cola Co.......................................... 40,000 2,415,000
McDonald's Corp....................................... 35,000 1,085,000
</TABLE>
CONTINUED
3
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
LARGE CAP EQUITY FUND OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCKS, CONTINUED:
--------------------------------------------------------------------------------
MARKET
SHARES VALUE
---------- ------------
<S> <C> <C>
PepsiCo, Inc.......................................... 45,000 $ 2,179,688
------------
7,052,188
------------
HEALTH CARE (12.6%)
American Home Products Corp........................... 30,000 1,905,000
Amgen, Inc. (b)....................................... 30,000 1,738,125
Biogen, Inc. (b)...................................... 20,000 1,203,750
Bristol-Myers Squibb Co............................... 35,000 2,132,813
Cardinal Health, Inc.................................. 15,000 1,421,250
Guidant Corp. (b)..................................... 20,000 1,058,750
Johnson & Johnson..................................... 35,000 3,224,375
Medtronic, Inc........................................ 25,000 1,357,813
Merck & Co., Inc...................................... 47,500 4,272,031
Pfizer, Inc........................................... 110,000 4,750,624
Pharmacia Corp........................................ 25,000 1,375,000
Schering-Plough Corp.................................. 25,000 1,292,188
Watson Pharmaceuticals, Inc. (b)...................... 20,000 1,251,250
------------
26,982,969
------------
INSURANCE (2.9%)
AFLAC, Inc............................................ 20,000 1,461,250
American International Group.......................... 48,000 4,704,000
------------
6,165,250
------------
MACHINERY & EQUIPMENT (0.2%)
Caterpillar, Inc...................................... 15,000 525,938
------------
MEDIA (0.5%)
Dow Jones & Co., Inc.................................. 10,000 588,750
Gannett Co., Inc...................................... 10,000 580,000
------------
1,168,750
------------
METALS (0.5%)
Alcoa, Inc............................................ 26,000 745,875
Nucor Corp............................................ 10,000 346,875
------------
1,092,750
------------
PAPER PRODUCTS (0.4%)
Fort James Corp....................................... 10,000 329,375
International Paper Co................................ 15,000 549,375
------------
878,750
------------
RETAIL (5.9%)
CVS Corp.............................................. 20,000 1,058,750
Home Depot, Inc....................................... 32,500 1,397,500
Lowes Co.............................................. 20,000 913,750
RadioShack Corp....................................... 20,000 1,192,500
Safeway, Inc. (b)..................................... 20,000 1,093,750
Target Corp........................................... 30,000 828,750
Wal-Mart Stores, Inc.................................. 90,000 4,083,750
Walgreen Co........................................... 45,000 2,053,125
------------
12,621,875
------------
TELECOMMUNICATIONS (6.6%)
AT&T Corp............................................. 25,000 579,688
Global Crossing Ltd. (b).............................. 50,000 1,181,250
Motorola, Inc......................................... 40,000 997,500
<CAPTION>
COMMON STOCKS, CONTINUED:
--------------------------------------------------------------------------------
MARKET
SHARES VALUE
---------- ------------
<S> <C> <C>
Qwest Communications International, Inc. (b).......... 50,000 $ 2,431,250
SBC Communications, Inc............................... 75,000 4,326,562
Sprint Corp........................................... 25,000 637,500
Sprint Corp. (PCS Group) (b).......................... 30,000 1,143,750
Verizon Communications................................ 15,000 867,188
WorldCom, Inc. (b).................................... 80,000 1,900,000
------------
14,064,688
------------
TELECOMMUNICATIONS-EQUIPMENT (2.0%)
Nortel Networks Corp.................................. 65,000 2,957,500
Tellabs, Inc. (b)..................................... 25,000 1,248,438
------------
4,205,938
------------
TRANSPORTATION & SHIPPING (0.1%)
Burlington Northern Santa Fe Corp..................... 10,000 265,625
------------
UTILITIES (1.3%)
AES Corp. (b)......................................... 30,000 1,695,000
Southern Co........................................... 35,000 1,028,126
------------
2,723,126
------------
TOTAL COMMON STOCKS (Cost $179,988,786) 209,370,557
------------
<CAPTION>
INVESTMENT COMPANIES (2.3%)
--------------------------------------------------------------------------------
<S> <C> <C>
Goldman Sachs Financial Square Prime Money Market
Fund................................................ 2,427,270 2,427,270
Provident Institutional Temporary Investment Fund..... 2,427,270 2,427,270
------------
TOTAL INVESTMENT COMPANIES
(Cost $4,854,540)............................................... 4,854,540
------------
TOTAL INVESTMENTS
(Cost $184,843,326) (a) (100.3%)................................ 214,225,109
Liabilities in excess of other assets (0.3%)...................... (709,108)
------------
NET ASSETS (100.0%)............................................... $213,516,001
============
</TABLE>
---------
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $48,090,479
Unrealized depreciation... (18,708,696)
-----------
Net unrealized
appreciation............ $29,381,783
===========
</TABLE>
(b) Represents non-income producing security.
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
CENTURA FUNDS, INC.
LARGE CAP EQUITY FUND
(UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at value (cost $184,843,326)............... $214,225,109
Dividends receivable.................................... 118,497
Receivable for capital shares issued.................... 5,274
Prepaid expenses........................................ 6,784
------------
TOTAL ASSETS.......................................... 214,355,664
LIABILITIES:
Payable for investments purchased....................... $776,088
Payable for capital shares redeemed..................... 2,034
Accrued expenses and other payables:
Investment advisory fees.............................. 23,828
Administration fees................................... 5,106
Distribution fees..................................... 9,807
Other................................................. 22,800
--------
Total Liabilities....................................... 839,663
------------
NET ASSETS:
Capital................................................. 171,848,364
Accumulated undistributed (dividends in excess of) net
investment income (loss).............................. (129,664)
Accumulated net realized gain from investment
transactions.......................................... 12,415,518
Net unrealized appreciation from investments............ 29,381,783
------------
NET ASSETS.............................................. $213,516,001
============
Class A
Net Assets............................................ $ 17,943,025
Shares................................................ 1,213,008
Redemption price per share............................ $ 14.79
============
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)................. $ 15.49
============
Class B
Net Assets............................................ $ 7,167,559
Shares................................................ 493,905
Offering price per share*............................. $ 14.51
============
Class C
Net Assets............................................ $188,405,417
Shares................................................ 12,706,681
Offering and redemption price per share............... $ 14.83
============
</TABLE>
---------
* Redemption price of Class B shares varies based on length of time held.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED OCTOBER 31, 2000
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividend income......................................... $ 1,024,997
------------
TOTAL INCOME.......................................... 1,024,997
EXPENSES:
Investment advisory fees................................ $769,693
Administration fees..................................... 164,934
Distribution fees--Class A.............................. 48,098
Distribution fees--Class B.............................. 38,390
Custodian fees.......................................... 27,490
Fund accounting fees.................................... 35,852
Transfer agent fees..................................... 39,118
Other................................................... 47,587
--------
Total expenses before voluntary fee reductions........ 1,171,162
Expenses voluntarily reduced.......................... (24,049)
------------
Net Expenses.......................................... 1,147,113
------------
NET INVESTMENT LOSS..................................... (122,116)
------------
REALIZED/UNREALIZED LOSS FROM
INVESTMENTS:
Net realized loss from investment transactions.......... (1,016,826)
Change in unrealized depreciation from investments...... (9,973,123)
------------
Net realized/unrealized loss from investments........... (10,989,949)
------------
Change in net assets resulting from operations.......... $(11,112,065)
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
CENTURA FUNDS, INC.
LARGE CAP EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
2000 2000
------------ ------------
(UNAUDITED)
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss).................... $ (122,116) $ 62,592
Net realized gains (losses) from investment
transactions.................................. (1,016,826) 19,408,209
Change in unrealized appreciation (depreciation)
from investments.............................. (9,973,123) 7,584,907
------------ ------------
Change in net assets resulting from operations.... (11,112,065) 27,055,708
------------ ------------
DIVIDENDS TO CLASS A SHAREHOLDERS:
From net investment income...................... -- (1,740)
In excess of net investment income.............. -- (2,818)
From net realized gains from investment
transactions.................................. -- (274,175)
DIVIDENDS TO CLASS B SHAREHOLDERS:
From net realized gains from investment
transactions.................................. -- (116,388)
DIVIDENDS TO CLASS C SHAREHOLDERS:
From net investment income...................... (7,548) (81,818)
In excess of net investment income.............. -- (132,509)
From net realized gains from investment
transactions.................................. -- (3,024,952)
------------ ------------
Change in net assets from shareholder dividends... (7,548) (3,634,400)
------------ ------------
Change in net assets from capital transactions.... 3,731,429 51,153,334
------------ ------------
Change in net assets.............................. (7,388,184) 74,574,642
NET ASSETS:
Beginning of period............................... 220,904,185 146,329,543
------------ ------------
End of period..................................... $213,516,001 $220,904,185
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<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 SIX FOR THE FOR THE FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
OCTOBER 31, APRIL 30, APRIL 30, APRIL 30, APRIL 30,
2000 2000 1999 1998 1997 (A)
------------ ---------- ---------- ---------- ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period......... $ 15.56 $ 13.81 $12.60 $10.91 $10.00
------- ------- ------ ------ ------
Investment Activities
Net investment income (loss)............... (0.02) (0.02) 0.10 0.26 0.14
Net realized and unrealized gains from
investments.............................. (0.75) 2.03 2.19 2.90 0.93
------- ------- ------ ------ ------
Total from Investment Activities........... (0.77) 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............... $ 14.79 $ 15.56 $13.81 $12.60 $10.91
======= ======= ====== ====== ======
TOTAL RETURN (EXCLUDES SALES CHARGE)......... (4.95%)(c) 14.63% 19.58% 30.36% 10.69%(c)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)............ $17,943 $19,044 $2,335 $1,490 $ 338
Ratio of expenses to average net assets...... 1.24%(b) 1.25% 1.14% 0.90% 0.99%(b)
Ratio of net investment income (loss) to
average net assets......................... (0.31%)(b) (0.22%) 0.72% 2.05% 2.15%(b)
Ratio of expenses to average net assets*..... 1.49%(b) 1.50% 1.51% 1.55% 1.65%(b)
Portfolio turnover rate**.................... 19% 63% 114% 39% 24%
</TABLE>
* 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.
FINANCIAL HIGHLIGHTS, CLASS B
<TABLE>
<CAPTION>
FOR THE SIX FOR THE FOR THE FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
OCTOBER 31, APRIL 30, APRIL 30, APRIL 30, APRIL 30,
2000 2000 1999 1998 1997 (A)
------------ ----------- ----------- ----------- ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period......... $15.32 $13.70 $12.55 $10.88 $10.00
------ ------ ------ ------ ------
Investment Activities
Net investment income (loss)............... (0.08) (0.11) (0.01) 0.17 0.11
Net realized and unrealized gains from
investments.............................. (0.73) 1.98 2.20 2.88 0.90
------ ------ ------ ------ ------
Total from Investment Activities........... (0.81) 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............... $14.51 $15.32 $13.70 $12.55 $10.88
====== ====== ====== ====== ======
TOTAL RETURN (EXCLUDES REDEMPTION CHARGE).... (5.29%)(c) 13.72% 18.76% 29.39% 10.15%(c)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)............ $7,168 $7,703 $4,138 $2,182 $ 427
Ratio of expenses to average net assets...... 1.99%(b) 2.00% 1.90% 1.64% 1.71%(b)
Ratio of net investment income (loss) to
average net assets......................... (1.06%)(b) (0.94%) (0.09%) 1.30% 1.52%(b)
Ratio of expenses to average net assets*..... (d) (d) 2.01% 2.05% 2.12%(b)
Portfolio turnover rate**.................... 19% 63% 114% 39% 24%
</TABLE>
* 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.
7
<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 SIX FOR THE FOR THE FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
OCTOBER 31, APRIL 30, APRIL 30, APRIL 30, APRIL 30,
2000 2000 1999 1998 1997 (A)
------------ ---------- ---------- ---------- ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period......... $ 15.57 $ 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.............................. (0.74) 2.03 2.21 2.89 0.91
-------- -------- -------- ------- -------
Total from Investment Activities........... (0.74) 2.04 2.33 3.18 1.06
-------- -------- -------- ------- -------
Dividends
Net investment income...................... (e) (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............... $ 14.83 $ 15.57 $ 13.80 $ 12.58 $ 10.89
======== ======== ======== ======= =======
TOTAL RETURN................................. (4.75%)(c) 14.88% 19.94% 30.72% 10.65%(c)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)............ $188,405 $194,157 $139,857 $65,053 $52,486
Ratio of expenses to average net assets...... 0.99%(b) 1.00% 0.92% 0.67% 0.75%(b)
Ratio of net investment income to average net
assets..................................... (0.05%)(b) 0.09% 0.82% 2.37% 2.45%(b)
Ratio of expenses to average net assets*..... (d) (d) 1.02% 1.08% 1.17%(b)
Portfolio turnover rate**.................... 19% 63% 114% 39% 24%
</TABLE>
* 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.
(e) LESS THAN $0.01 PER SHARE.
8
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
MID CAP EQUITY FUND OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCKS (88.1%)
-------------------------------------------------------------------
MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
AUTO PARTS (1.0%)
Lear Corp. (b).......................... 16,000 $ 436,000
SPX Corp. (b)........................... 8,000 989,000
------------
1,425,000
------------
BANKING & FINANCIAL SERVICES (8.3%)
Astoria Financial Corp.................. 17,000 637,500
Charter One Financial, Inc.............. 43,365 994,684
City National Corp...................... 18,000 618,750
Compass Bancshares, Inc................. 36,000 654,750
Dime Bancorp, Inc....................... 40,000 977,500
E*Trade Group, Inc. (b)................. 35,000 509,688
First Tennessee National Corp........... 27,000 621,000
Greenpoint Financial Corp............... 25,000 743,750
Marshall & Ilsley Corp.................. 25,000 1,132,812
Mercantile Bankshares Corp.............. 22,000 827,750
North Fork Bancorp, Inc................. 29,000 585,438
Provident Financial Group, Inc.......... 14,000 423,500
Sovereign Bancorp, Inc.................. 50,000 415,625
TCF Financial Corp...................... 29,000 1,172,687
Wells Fargo & Co........................ 14,910 690,519
Wilmington Trust Corp................... 14,000 736,750
Zions Bancorp........................... 13,000 746,688
------------
12,489,391
------------
BUILDING & CONSTRUCTION (0.3%)
Clayton Homes, Inc...................... 50,000 459,375
------------
BUILDING PRODUCTS (1.6%)
American Standard Cos., Inc. (b)........ 18,000 825,750
Martin Marietta Materials, Inc.......... 18,000 691,200
Southdown, Inc.......................... 13,000 921,375
------------
2,438,325
------------
BUSINESS EQUIPMENT & SERVICES (1.2%)
Comdisco, Inc........................... 25,500 313,969
Manpower, Inc........................... 19,000 661,437
Robert Half International, Inc. (b)..... 25,000 762,499
------------
1,737,905
------------
CHEMICALS (1.4%)
Cabot Corp. (b)......................... 20,000 440,000
Cabot Microelectronics Corp. (b)........ 5,609 247,869
Cytec Industries, Inc. (b).............. 20,000 692,500
Ferro Corp.............................. 15,000 307,500
Olin Corp............................... 25,000 443,750
------------
2,131,619
------------
COMMERCIAL SERVICES (1.5%)
ACNielsen Corp. (b)..................... 18,000 430,875
Concord EFS, Inc. (b)................... 35,000 1,445,938
Quanta Services, Inc. (b)............... 10,000 310,625
------------
2,187,438
------------
COMPUTER INDUSTRY (9.8%)
3Com Corp. (b).......................... 50,000 887,500
<CAPTION>
COMMON STOCKS, CONTINUED:
-------------------------------------------------------------------
MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
Comverse Technology, Inc. (b)........... 14,000 $ 1,564,500
Electronic Arts, Inc. (b)............... 30,000 1,500,000
Fiserv, Inc. (b)........................ 22,500 1,179,844
InFocus Corp. (b)....................... 11,000 486,063
Intuit, Inc. (b)........................ 28,000 1,720,249
Macromedia, Inc. (b).................... 15,000 1,155,938
NVIDIA Corp. (b)........................ 16,000 994,250
QLogic Corp. (b)........................ 15,000 1,451,250
Rational Software Corp. (b)............. 34,000 2,029,374
Red Hat, Inc. (b)....................... 20,000 250,000
Symantec Corp. (b)...................... 10,000 390,625
Synopsys, Inc. (b)...................... 17,000 592,875
Wind River Systems, Inc. (b)............ 14,000 574,875
------------
14,777,343
------------
CONSUMER GOODS AND SERVICES (0.9%)
Fastenal Co............................. 11,000 631,813
Jones Apparel Group, Inc. (b)........... 25,000 695,313
------------
1,327,126
------------
DIVERSIFIED OPERATIONS (1.2%)
Montana Power Co........................ 20,000 565,000
Teleflex, Inc........................... 15,000 518,438
Viad Corp............................... 31,000 662,625
------------
1,746,063
------------
DRUGS (3.0%)
Forest Laboratories, Inc.--
Class A (b)........................... 18,000 2,385,000
ICN Pharmaceuticals, Inc................ 23,000 875,438
Mylan Laboratories, Inc................. 20,000 560,000
Sepracor, Inc. (b)...................... 10,000 681,250
------------
4,501,688
------------
ELECTRONIC COMPONENTS/INSTRUMENTS (15.3%)
Arrow Electronics, Inc. (b)............. 24,000 768,000
Atmel Corp. (b)......................... 100,000 1,493,750
Cypress Semiconductor Corp. (b)......... 29,000 1,085,688
Integrated Device
Technology, Inc. (b).................. 30,000 1,689,375
International Rectifier Corp. (b)....... 10,000 446,250
Jabil Circuit, Inc. (b)................. 28,000 1,597,750
Lattice Semiconductor Corp. (b)......... 20,000 583,750
Linear Technology Corp.................. 45,000 2,905,312
Micrel, Inc. (b)........................ 18,000 814,500
Microchip Technology, Inc. (b).......... 27,000 853,875
Novellus Systems, Inc. (b).............. 18,000 736,875
Polycom, Inc. (b)....................... 11,000 715,000
Sanmina Corp. (b)....................... 10,000 1,143,125
SCI Systems, Inc. (b)................... 34,000 1,462,000
Semtech Corp. (b)....................... 10,000 322,500
Symbol Technologies, Inc................ 24,000 1,090,500
Transwitch Corp......................... 10,000 577,500
TriQuint Semiconductor, Inc. (b)........ 6,000 229,875
Vishay Intertechnology, Inc. (b)........ 35,000 1,050,000
Vitesse Semiconductor Corp. (b)......... 30,000 2,098,124
</TABLE>
CONTINUED
9
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
MID CAP EQUITY FUND OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCKS, CONTINUED:
-------------------------------------------------------------------
MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
Waters Corp. (b)........................ 18,000 $ 1,306,125
------------
22,969,874
------------
ENERGY (6.6%)
BJ Services Co.......................... 13,000 681,688
Calpine Corp. (b)....................... 23,000 1,815,562
Devon Energy Corp....................... 12,100 609,840
Diamond Offshore Drilling, Inc.......... 12,000 414,750
Murphy Oil Corp......................... 13,000 753,188
Nabors Industries, Inc. (b)............. 25,000 1,272,499
Noble Drilling Corp. (b)................ 20,000 831,250
Ocean Energy, Inc. (b).................. 40,000 555,000
Questar Corp............................ 28,000 757,750
Repsol-YPF SA, ADR...................... 30,000 478,125
Smith International, Inc. (b)........... 14,000 987,000
Weatherford International, Inc. (b)..... 20,000 730,000
------------
9,886,652
------------
ENGINEERING (0.3%)
Jacobs Engineering Group, Inc. (b)...... 11,000 455,125
------------
FOOD AND BEVERAGES (2.6%)
Flowers Industries, Inc................. 35,000 538,125
Hershey Foods Corp...................... 15,000 814,688
Hormel Foods Corp....................... 40,000 672,500
Nabisco Holdings Corp.--Class A......... 23,000 1,243,437
Tyson Foods, Inc........................ 22,900 256,194
Whitman Corp............................ 30,000 390,000
------------
3,914,944
------------
HEALTH CARE (9.2%)
Beckman Coulter, Inc.................... 10,000 700,625
Chiron Corp. (b)........................ 41,000 1,775,813
DENTSPLY International, Inc............. 20,000 693,750
Express Scripts, Inc.--Class A (b)...... 8,000 537,500
Genzyme Corp. (b)....................... 10,000 710,000
Gilead Sciences, Inc. (b)............... 6,000 516,000
IDEC Pharmaceuticals Corp. (b).......... 8,000 1,569,000
Incyte Genomics, Inc. (b)............... 10,000 366,250
IVAX Corp. (b).......................... 30,000 1,305,000
Millennium Pharmaceuticals, Inc. (b).. 40,000 2,902,499
Stryker Corp............................ 40,000 1,885,000
Sybron International Corp. (b).......... 35,000 866,250
------------
13,827,687
------------
HOME FURNISHINGS (0.3%)
Furniture Brands
International, Inc. (b)............... 23,000 388,125
------------
INSURANCE (1.3%)
American Municipal Bond Assurance
Corp.................................. 19,000 1,516,438
Protective Life Corp.................... 18,000 416,250
------------
1,932,688
------------
LEISURE (0.8%)
International Game Technology........... 13,825 506,341
<CAPTION>
COMMON STOCKS, CONTINUED:
-------------------------------------------------------------------
MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
Park Place Entertainment Corp. (b)...... 50,000 $ 637,500
------------
1,143,841
------------
MEDIA (3.0%)
Belo (A.H.) Corp.--Class A.............. 35,000 671,563
Hispanic Broadcasting Corp.--
Class A (b)........................... 16,000 500,000
Houghton Mifflin Co..................... 10,000 368,125
Media General, Inc.--Class A............ 10,000 380,000
Univision Communications, Inc. (b)...... 44,000 1,682,999
Washington Post Co...................... 1,532 818,280
------------
4,420,967
------------
METALS (0.3%)
Carpenter Technology Corp............... 14,000 434,000
------------
PAPER PRODUCTS (1.3%)
Bowater, Inc............................ 12,000 649,500
Georgia-Pacific Timber Group............ 25,000 707,813
Longview Fibre Co....................... 40,000 545,000
------------
1,902,313
------------
POLLUTION CONTROL (0.3%)
Donaldson Co., Inc...................... 22,000 497,750
------------
RESTAURANTS (1.3%)
Starbucks Corp. (b)..................... 45,000 2,010,938
------------
RETAIL (4.2%)
Abercrombie & Fitch Co.--
Class A (b)........................... 30,000 706,875
Barnes & Noble, Inc. (b)................ 12,000 226,500
BJ's Wholesale Club, Inc. (b)........... 15,000 494,063
CDW Computer Centers, Inc. (b).......... 14,000 902,124
Dollar Tree Stores, Inc. (b)............ 33,000 1,291,124
Family Dollar Stores, Inc............... 35,000 680,313
May Department Stores Co................ 30,000 787,500
Tiffany & Co............................ 20,000 853,750
Williams-Sonoma, Inc. (b)............... 17,000 353,813
------------
6,296,062
------------
TELECOMMUNICATIONS (2.1%)
Broadwing, Inc.......................... 35,000 988,750
Telephone and Data Systems, Inc......... 20,000 2,110,000
------------
3,098,750
------------
TELECOMMUNICATIONS-EQUIPMENT (0.3%)
Powerwave Technologies, Inc. (b)........ 10,000 481,250
------------
TEXTILES & TOOLS (1.4%)
Cintas Corp............................. 30,000 1,391,250
Shaw Industries, Inc.................... 35,000 649,688
------------
2,040,938
------------
TRANSPORTATION & SHIPPING (0.4%)
GATX Corp............................... 14,000 588,875
------------
</TABLE>
CONTINUED
10
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
MID CAP EQUITY FUND OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCKS, CONTINUED:
-------------------------------------------------------------------
MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
UTILITIES (6.9%)
American Water Works Co, Inc............ 20,000 $ 487,500
Energy East Corp........................ 35,000 706,563
IDACORP, Inc............................ 23,000 1,134,187
IPALCO Enterprise, Inc.................. 39,000 875,063
National Fuel Gas Co.................... 10,000 536,250
NiSource, Inc........................... 50,000 1,246,874
Northeast Utilities..................... 52,000 1,059,500
OGE Energy Corp......................... 45,000 925,313
Sierra Pacific Resources................ 44,000 756,250
St. Joseph Light & Power Co............. 25,000 445,313
TECO Energy, Inc........................ 45,000 1,254,374
Vectren Corp. (b)....................... 6,665 154,128
Washington Gas Light Co................. 27,000 688,500
------------
10,269,815
------------
TOTAL COMMON STOCKS (Cost $105,791,533).............. 131,781,867
------------
<CAPTION>
INVESTMENT COMPANIES (10.4%)
-------------------------------------------------------------------
<S> <C> <C>
Goldman Sachs Financial Square Prime
Money Market Fund..................... 7,735,948 7,735,948
Provident Institutional Temporary
Investment Fund....................... 7,735,948 7,735,948
------------
TOTAL INVESTMENT COMPANIES
(Cost $15,471,896)................................. 15,471,896
------------
TOTAL INVESTMENTS
(Cost $121,263,429) (a) (98.5%).................... 147,253,763
Other assets in excess of liabilities (c) (1.5%)..... 2,188,700
------------
NET ASSETS (100.0%).................................. $149,442,463
============
</TABLE>
---------
(a) Represents cost for financial reporting and federal income tax purposes and
differs from value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation................. $34,237,076
Unrealized depreciation................. (7,842,742)
-----------
Net unrealized appreciation............. $26,394,334
===========
</TABLE>
---------
(b) Represents non-income producing security.
(c) Includes $600,000 cash held as collateral for futures contracts.
<TABLE>
<CAPTION>
NUMBER OF MARKET UNREALIZED
CONTRACTS VALUE APPRECIATION
----------- ------------ -------------
<S> <C> <C> <C>
PURCHASED CONTRACT:
S&P Midcap 400 Future
notional amount
$10,021,000 expiring
December 15, 2000....... 40 $10,425,000 $404,000
TOTAL FUTURES............. $10,425,000 $404,000
</TABLE>
ADR -- American Depositary Receipt
SA -- Sociedad Anonimal (Spanish Corporation)
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
CENTURA FUNDS, INC
MID CAP EQUITY FUND
(UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at value (cost $121,263,429)............. $147,253,763
Cash.................................................. 600,000
Interest and dividends receivable..................... 120,161
Receivable for capital shares issued.................. 13,018
Receivable for investments sold....................... 3,209,455
Receivable for net variation margin on open futures
contracts........................................... 215,000
Prepaid expenses...................................... 4,374
------------
TOTAL ASSETS........................................ 151,415,771
LIABILITIES:
Payable for investments purchased..................... $1,906,230
Payable for capital shares redeemed................... 4,115
Accrued expenses and other payables:
Investment advisory fees............................ 16,484
Administration fees................................. 3,532
Distribution fees................................... 21,271
Other............................................... 21,676
----------
TOTAL LIABILITIES................................... 1,973,308
------------
NET ASSETS:
Capital............................................... 92,135,143
Accumulated undistributed (dividends in excess of) net
investment income (loss)............................ (34,470)
Accumulated net realized gain from investment
transactions........................................ 30,947,456
Net unrealized appreciation from investments and
futures............................................. 26,394,334
------------
NET ASSETS............................................ $149,442,463
============
Class A
Net Assets.......................................... $ 31,565,296
Shares.............................................. 2,051,360
Redemption price per share.......................... $ 15.39
============
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).............................. $ 16.12
============
Class B
Net Assets.......................................... $ 17,899,956
Shares.............................................. 1,214,754
Offering price per share*........................... $ 14.74
============
Class C
Net Assets.......................................... $ 99,977,211
Shares.............................................. 6,436,277
Offering and redemption price per share............. $ 15.53
============
</TABLE>
---------
* Redemption price of Class B shares varies based on length of time held.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED OCTOBER 31, 2000
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest income.......................................... $ 53,729
Dividend income.......................................... 860,287
-----------
TOTAL INCOME........................................... 914,016
EXPENSES:
Investment advisory fees................................. $492,541
Administration fees...................................... 105,544
Distribution fees--Class A............................... 79,175
Distribution fees--Class B............................... 88,247
Custodian fees........................................... 17,592
Fund accounting fees..................................... 24,421
Transfer agent fees...................................... 57,267
Other.................................................... 31,868
--------
Total expenses before voluntary fee reductions......... 896,655
Expenses voluntarily reduced........................... (39,588)
-----------
Net Expenses........................................... 857,067
-----------
NET INVESTMENT INCOME.................................... 56,949
-----------
REALIZED/UNREALIZED GAIN (LOSS) FROM INVESTMENTS:
Net realized gain from investment transactions........... 19,593,536
Change in unrealized depreciation from investments and
futures................................................ (6,065,553)
-----------
Net realized/unrealized gain from investments............ 13,527,983
-----------
Change in net assets resulting from operations........... $13,584,932
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
CENTURA FUNDS, INC
MID CAP EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
2000 2000
------------ ------------
(UNAUDITED)
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss).................... $ 56,949 $ (112,570)
Net realized gains from investment
transactions.................................. 19,593,536 13,802,192
Change in unrealized appreciation (depreciation)
from investments and futures.................. (6,065,553) 12,647,952
------------ ------------
Change in net assets resulting from operations.... 13,584,932 26,337,574
------------ ------------
DIVIDENDS TO CLASS A SHAREHOLDERS:
From net investment income...................... (14,434) --
From net realized gains from investment
transactions.................................. -- (7,307,959)
DIVIDENDS TO CLASS B SHAREHOLDERS:
From net realized gains from investment
transactions.................................. -- (4,088,244)
DIVIDENDS TO CLASS C SHAREHOLDERS:
From net investment income...................... (76,985) --
In excess of net investment income.............. -- (18,186)
From net realized gains from investment
transactions.................................. -- (18,915,799)
------------ ------------
Change in net assets from shareholder dividends... (91,419) (30,330,188)
------------ ------------
Change in net assets from capital transactions.... 3,461,154 (35,719,712)
------------ ------------
Change in net assets.............................. 16,954,667 (39,712,326)
NET ASSETS:
Beginning of year............................... 132,487,796 172,200,122
------------ ------------
End of year..................................... $149,442,463 $132,487,796
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
13
<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 SIX FOR THE FOR THE FOR THE FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, APRIL 30, APRIL 30, APRIL 30, APRIL 30, APRIL 30,
2000 2000 1999 1998 1997 1996
------------ ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period......... $ 14.02 $ 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 and futures.................. 1.38 2.69 1.15 4.92 1.58 3.67
------- ------- ------- ------- ------ ------
Total from Investment Activities........... 1.38 2.67 1.18 4.97 1.64 3.70
------- ------- ------- ------- ------ ------
Dividends
Net investment income...................... (0.01) -- (0.04) (0.05) (0.06) (0.05)
Net realized gain.......................... -- (3.98) (1.95) (4.11) (0.56) (0.04)
------- ------- ------- ------- ------ ------
Total Dividends............................ (0.01) (3.98) (1.99) (4.16) (0.62) (0.09)
------- ------- ------- ------- ------ ------
Net Asset Value, End of Period............... $ 15.39 $ 14.02 $ 15.33 $ 16.14 $15.33 $14.31
======= ======= ======= ======= ====== ======
TOTAL RETURN (EXCLUDES SALES CHARGE)......... 9.82%(a) 21.15% 8.59% 36.55% 11.55% 34.72%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)............ $31,565 $30,374 $14,034 $13,935 $8,501 $5,740
Ratio of expenses to average net assets...... 1.29%(b) 1.31% 1.28% 1.23% 1.30% 1.26%
Ratio of net investment income (loss) to
average net assets......................... 0.01%(b) (0.17%) 0.20% 0.31% 0.42% 0.27%
Ratio of expenses to average net assets*..... 1.54%(b) 1.56% 1.53% 1.48% 1.55% (c)
Portfolio turnover rate**.................... 30% 61% 142% 49% 67% 46%
</TABLE>
* 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) NOT ANNUALIZED.
(b) ANNUALIZED.
(c) THERE WERE NO WAIVERS OR REIMBURSEMENTS DURING THE PERIOD.
FINANCIAL HIGHLIGHTS, CLASS B
<TABLE>
<CAPTION>
FOR THE SIX FOR THE FOR THE FOR THE FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, APRIL 30, APRIL 30, APRIL 30, APRIL 30, APRIL 30,
2000 2000 1999 1998 1997 1996
------------ ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period......... $ 13.47 $ 14.97 $ 15.88 $ 15.20 $14.24 $10.69
------- ------- ------- ------- ------ ------
Investment Activities
Net investment income (loss)............... (0.05) (0.13) (0.07) (0.05) (0.04) (0.06)
Net realized and unrealized gain from
investments and futures.................. 1.32 2.61 1.12 4.84 1.57 3.65
------- ------- ------- ------- ------ ------
Total from Investment Activities........... 1.27 2.48 1.05 4.79 1.53 3.59
------- ------- ------- ------- ------ ------
Dividends
Net investment income (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............... $ 14.74 $ 13.47 $ 14.97 $ 15.88 $15.20 $14.24
======= ======= ======= ======= ====== ======
TOTAL RETURN (EXCLUDES REDEMPTION CHARGE).... 9.43%(a) 20.31% 7.83% 35.55% 10.78% 33.73%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)............ $17,900 $17,209 $19,269 $18,225 $9,761 $6,194
Ratio of expenses to average net assets...... 2.04%(b) 2.06% 2.04% 1.98% 2.05% 2.02%
Ratio of net investment income (loss) to
average net assets......................... (0.74%)(b) (0.90%) (0.55%) (0.43%) (0.33%) (0.48%)
Portfolio turnover rate**.................... 30% 61% 142% 49% 67% 46%
</TABLE>
** PORTFOLIO TURNOVER IS CALCULATED ON THE BASIS OF THE FUND AS A WHOLE
WITHOUT DISTINGUISHING BETWEEN THE CLASSES OF SHARES ISSUED.
(a) NOT ANNUALIZED.
(b) ANNUALIZED.
CONTINUED
14
<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 SIX FOR THE FOR THE FOR THE FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, APRIL 30, APRIL 30, APRIL 30, APRIL 30, APRIL 30,
2000 2000 1999 1998 1997 1996
------------ ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period......... $ 14.14 $ 15.37 $ 16.16 $ 15.33 $ 14.31 $ 10.70
------- ------- -------- -------- -------- --------
Investment Activities
Net investment income...................... 0.02 0.01 0.07 0.09 0.09 0.07
Net realized and unrealized gain from
investments and futures.................. 1.38 2.74 1.15 4.94 1.58 3.65
------- ------- -------- -------- -------- --------
Total from Investment Activities........... 1.40 2.75 1.22 5.03 1.67 3.72
------- ------- -------- -------- -------- --------
Dividends
Net investment income.................... (0.01) -- (0.06) (0.09) (0.09) (0.07)
In excess of net investment income....... -- (c) -- -- -- --
Net realized gain........................ -- (3.98) (1.95) (4.11) (0.56) (0.04)
------- ------- -------- -------- -------- --------
Total Dividends.......................... (0.01) (3.98) (2.01) (4.20) (0.65) (0.11)
------- ------- -------- -------- -------- --------
Net Asset Value, End of Period........... $ 15.53 $ 14.14 $ 15.37 $ 16.16 $ 15.33 $ 14.31
======= ======= ======== ======== ======== ========
TOTAL RETURN............................... 9.93%(a) 21.67% 8.93% 36.89% 11.82% 34.97%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000).......... $99,977 $84,905 $138,897 $179,859 $147,213 $133,714
Ratio of expenses to average net assets.... 1.04%(b) 1.06% 1.03% 1.00% 1.05% 1.04%
Ratio of net investment income to average
net assets............................... 0.26%(b) 0.10% 0.46% 0.56% 0.67% 0.55%
Portfolio turnover rate**.................. 30% 61% 142% 49% 67% 46%
</TABLE>
** PORTFOLIO TURNOVER IS CALCULATED ON THE BASIS OF THE FUND AS A WHOLE
WITHOUT DISTINGUISHING BETWEEN THE CLASSES OF SHARES ISSUED.
(a) NOT ANNUALIZED.
(b) ANNUALIZED.
(c) LESS THAN $0.01 PER SHARE.
15
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
SMALL CAP EQUITY FUND OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCKS (97.6%)
--------------------------------------------------------------
MARKET
SHARES VALUE
------- -----------
<S> <C> <C>
ADVERTISING (3.7%)
Catalina Marketing Corp. (b)............ 12,000 $ 471,000
Havas Advertising, ADR (b).............. 23,307 374,369
True North Communications, Inc.......... 10,000 376,875
-----------
1,222,244
-----------
AIRLINES (0.9%)
SkyWest, Inc............................ 6,000 303,000
-----------
APPAREL (0.2%)
Wolverine World Wide, Inc............... 5,000 54,063
-----------
AUTO PARTS (0.3%)
Tower Automotive, Inc. (b).............. 9,000 99,000
-----------
BANKING & FINANCIAL SERVICES (12.5%)
AmeriCredit Corp. (b)................... 15,000 403,124
ChoicePoint, Inc. (b)................... 7,000 358,313
Commerce Bancorp, Inc................... 5,000 302,813
Cullen/Frost Bankers, Inc............... 10,000 333,125
Dain Rauscher Corp...................... 3,000 281,438
Downey Financial Corp................... 6,000 286,500
Eaton Vance Corp........................ 7,000 348,688
Morgan Keegan, Inc...................... 10,000 199,375
National Discount Brokers
Group, Inc. (b)....................... 8,000 389,500
Radian Group, Inc....................... 6,000 425,249
Raymond James Financial, Inc............ 12,000 405,749
Southwest Bancorporation of
Texas, Inc. (b)....................... 8,000 292,000
Washington Federal, Inc................. 7,000 156,188
-----------
4,182,062
-----------
BUILDING & CONSTRUCTION (1.5%)
Elcor Corp.............................. 8,000 124,500
Florida Rock Industries, Inc............ 4,000 155,500
Simpson Manufacturing Co., Inc. (b)..... 5,000 213,125
-----------
493,125
-----------
BUSINESS EQUIPMENT & SERVICES (4.9%)
American Management
Systems, Inc. (b)..................... 8,000 173,000
Brady Corp.............................. 5,000 155,000
Copart, Inc. (b)........................ 10,000 150,625
Insight Enterprises, Inc. (b)........... 10,500 341,250
Jack Henry & Associates, Inc............ 8,000 440,000
Pre-Paid Legal Services, Inc. (b)....... 8,000 351,000
Profit Recovery Group
International, Inc. (b)............... 5,000 26,875
-----------
1,637,750
-----------
CHEMICALS (1.5%)
Cambrex Corp............................ 7,000 279,563
OM Group, Inc........................... 4,000 185,000
PolyOne Corp............................ 4,000 31,500
-----------
496,063
-----------
COMMERCIAL SERVICES (2.9%)
F.Y.I., Inc. (b)........................ 3,000 120,375
<CAPTION>
COMMON STOCKS, CONTINUED:
--------------------------------------------------------------
MARKET
SHARES VALUE
------- -----------
<S> <C> <C>
MAXIMUS, Inc. (b)....................... 5,000 $ 122,813
Plexus Corp. (b)........................ 7,000 441,437
StarTek, Inc. (b)....................... 2,000 50,875
Tetra Technology, Inc. (b).............. 7,000 243,250
-----------
978,750
-----------
COMPUTER INDUSTRY (6.4%)
BARRA, Inc. (b)......................... 5,000 305,625
C-Cube Microsystems, Inc. (b)........... 6,000 117,000
Dendrite International, Inc. (b)........ 5,000 108,750
FileNet Corp. (b)....................... 10,000 266,719
Mercury Computer Systems, Inc. (b)...... 4,000 124,000
National Instruments Corp. (b).......... 9,424 439,982
Peregrine Systems, Inc. (b)............. 10,000 240,000
RadiSys Corp. (b)....................... 5,000 132,500
S3 Inc. (b)............................. 10,000 90,313
Verity, Inc. (b)........................ 8,000 188,000
Xircom, Inc. (b)........................ 10,000 141,250
-----------
2,154,139
-----------
CONSUMER GOODS AND SERVICES (0.9%)
Salton, Inc. (b)........................ 5,000 114,375
Tredegar Corp........................... 10,000 190,625
-----------
305,000
-----------
DISTRIBUTION/WHOLESALE (0.3%)
Hughes Supply, Inc...................... 5,000 93,750
-----------
ELECTRONIC COMPONENTS/INSTRUMENTS (10.6%)
Actel Corp. (b)......................... 3,000 109,875
Alpha Industries, Inc. (b).............. 7,000 279,125
Black Box Corp. (b)..................... 4,500 296,438
Dallas Semiconductor Corp............... 10,000 396,250
Electro Scientific
Industries, Inc. (b).................. 7,000 244,563
Harman International
Industries, Inc....................... 10,000 479,999
KEMET Corp. (b)......................... 14,000 390,250
Kulicke and Soffa
Industries, Inc. (b).................. 25,000 367,188
Photronics, Inc. (b).................... 10,000 225,625
Technitrol, Inc......................... 3,000 332,625
Vicor Corp. (b)......................... 8,000 431,999
-----------
3,553,937
-----------
ENERGY (6.1 %)
Atwood Oceanics, Inc. (b)............... 4,000 134,250
Barrett Resources Corp. (b)............. 7,000 254,625
Cross Timbers Oil Co.................... 15,000 282,188
Newfield Exploration Co. (b)............ 8,000 302,000
Pogo Producing Co....................... 12,000 300,000
Pride International, Inc. (b)........... 10,000 253,125
Stone Energy Corp. (b).................. 3,000 153,600
Vintage Petroleum, Inc.................. 17,500 369,688
-----------
2,049,475
-----------
FOOD AND BEVERAGES (2.1%)
Constellation Brands, Inc. (b).......... 5,000 243,750
Hain Celestial Group, Inc. (b).......... 9,000 357,188
</TABLE>
CONTINUED
16
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
SMALL CAP EQUITY FUND OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCKS, CONTINUED:
--------------------------------------------------------------
MARKET
SHARES VALUE
------- -----------
<S> <C> <C>
Smithfield Foods, Inc. (b).............. 3,500 $ 100,406
-----------
701,344
-----------
HEALTH CARE (17.4%)
Alpharma, Inc........................... 7,000 271,688
Barr Laboratories, Inc. (b)............. 4,000 252,500
Bindley Western Industries, Inc......... 10,000 359,375
Bio-Technology General Corp. (b)........ 15,000 156,563
Biomatrix, Inc. (b)..................... 6,000 114,750
COR Therapeutics, Inc. (b).............. 5,000 282,500
Enzo Biochem, Inc. (b).................. 7,000 269,500
IDEXX Laboratories, Inc. (b)............ 12,000 288,000
Medicis Pharmaceutical Corp. (b)........ 5,000 368,125
Noven Pharmaceuticals, Inc. (b)......... 7,000 311,938
Orthodontic Centers of
America, Inc. (b)..................... 12,000 400,499
Patterson Dental Co. (b)................ 14,000 438,374
Pharmaceutical Product
Development, Inc. (b)................. 7,500 234,844
PolyMedica, Corp. (b)................... 5,000 287,500
Priority Healthcare Corp. (b)........... 4,500 241,875
Renal Care Group, Inc. (b).............. 9,000 211,500
ResMed, Inc. (b)........................ 6,000 153,000
Syncor International Corp. (b).......... 5,000 128,438
Techne Corp. (b)........................ 4,000 450,999
Theragenics Corp. (b)................... 15,000 70,313
Universal Health Services, Inc. (b)..... 6,000 503,249
-----------
5,795,530
-----------
HOME FURNISHINGS (0.7%)
Ethan Allen Interiors, Inc.............. 5,000 146,250
La-Z-Boy, Inc........................... 5,000 78,750
-----------
225,000
-----------
HUMAN RESOURCES (0.4%)
Spherion Corp. (b)...................... 10,000 118,750
-----------
INDUSTRIAL GOODS & SERVICES (1.0%)
Dycom Industries, Inc. (b).............. 9,000 338,625
-----------
INSURANCE (2.2%)
Arthur J. Gallagher & Co................ 7,000 441,875
Hilb, Rogal & Hamilton Co............... 7,000 277,375
-----------
719,250
-----------
LEISURE (1.3%)
Aztar Corp. (b)......................... 20,000 302,500
Polaris Industries, Inc................. 4,000 139,000
-----------
441,500
-----------
MACHINERY & EQUIPMENT (2.9%)
Cognex Corp. (b)........................ 9,000 301,499
Graco, Inc.............................. 5,000 179,688
Helix Technology Corp................... 6,000 167,250
Manitowoc Co., Inc...................... 3,000 81,563
Roper Industries, Inc................... 7,000 245,000
-----------
975,000
-----------
<CAPTION>
COMMON STOCKS, CONTINUED:
--------------------------------------------------------------
MARKET
SHARES VALUE
------- -----------
<S> <C> <C>
METALS (1.4%)
Mueller Industries, Inc. (b)............ 6,000 $ 139,875
Reliance Steel & Aluminum Co............ 5,500 130,625
Stillwater Mining Co. (b)............... 7,000 203,000
-----------
473,500
-----------
REAL ESTATE (0.3%)
Ryland Group, Inc....................... 3,000 96,750
-----------
RESTAURANTS (0.7%)
CEC Entertainment, Inc. (b)............. 2,000 63,750
Ruby Tuesday, Inc....................... 13,622 184,748
-----------
248,498
-----------
RETAIL (4.4%)
Fossil, Inc. (b)........................ 8,000 104,500
Linens 'n Things, Inc. (b).............. 8,000 246,000
Men's Wearhouse, Inc. (b)............... 8,000 234,000
Regis Corp.............................. 8,000 121,000
Timberland Co. (b)...................... 8,000 413,000
Zale Corp. (b).......................... 10,000 338,750
-----------
1,457,250
-----------
SEMICONDUCTOR EQUIPMENT (0.4%)
Electroglas, Inc. (b)................... 10,000 140,625
-----------
TECHNOLOGY (1.4%)
CTS Corp................................ 4,500 193,219
Zebra Technologies
Corp.--Class A (b).................... 6,000 262,875
-----------
456,094
-----------
TELECOMMUNICATIONS-EQUIPMENT (3.7%)
Anixter International, Inc. (b)......... 10,000 242,500
Aspect Communications Corp. (b)......... 4,000 65,938
C-COR.net Corp. (b)..................... 10,000 156,250
DMC Stratex Networks, Inc. (b).......... 12,000 277,500
Inter-Tel, Inc.......................... 6,000 69,375
Plantronics, Inc. (b)................... 9,000 410,624
TALK.com, Inc. (b)...................... 6,000 18,563
-----------
1,240,750
-----------
TRANSPORTATION & SHIPPING (1.7%)
Expeditors International of
Washington, Inc....................... 9,300 482,438
USFreightways Corp...................... 3,000 77,250
-----------
559,688
-----------
UTILITIES (2.9%)
Energen Corp............................ 11,000 314,875
New Jersey Resources Corp............... 4,000 159,750
Northwest Natural Gas Co................ 6,000 140,625
NorthWestern Corp....................... 6,000 132,750
Piedmont Natural Gas Co., Inc........... 7,000 213,500
-----------
961,500
-----------
TOTAL COMMON STOCKS (Cost $28,126,944)........... 32,572,013
-----------
</TABLE>
CONTINUED
17
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
SMALL CAP EQUITY FUND OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
INVESTMENT COMPANIES (2.4%)
--------------------------------------------------------------
<S> <C> <C>
Goldman Sachs Financial Square Prime
Money Market Fund..................... 403,886 $ 403,886
Provident Institutional Temporary
Investment Fund....................... 403,886 403,885
-----------
TOTAL INVESTMENT COMPANIES
(Cost $807,771)................................ 807,771
-----------
RIGHTS (0.0%)
Elan Corp. PLC (b)...................... 8,000 6,500
-----------
TOTAL RIGHTS (Cost $0).................. 6,500
-----------
TOTAL INVESTMENTS
(Cost $28,934,715)(a)(100.0%).................. 33,386,284
Liabilities in excess of other assets (0.00%).... (1,987)
-----------
NET ASSETS (100.0%).............................. $33,384,297
===========
</TABLE>
---------
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $ 7,989,193
Unrealized depreciation... (3,537,624)
-----------
Net unrealized
appreciation............ $ 4,451,569
===========
</TABLE>
(b) Represents non-income producing security.
ADR -- American Depositary Receipt
PLC -- Public Limited Company
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
CENTURA FUNDS, INC.
SMALL CAP EQUITY FUND
(UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at value (cost $28,934,715)................... $33,386,284
Interest and dividends receivable.......................... 10,490
Receivable for capital shares issued....................... 462
Prepaid expenses........................................... 4,684
-----------
TOTAL ASSETS............................................. 33,401,920
LIABILITIES:
Accrued expenses and other payables:
Investment advisory fees................................. $3,662
Administration fees...................................... 785
Distribution fees........................................ 5,123
Other.................................................... 8,053
------
TOTAL LIABILITIES........................................ 17,623
-----------
NET ASSETS:
Capital.................................................... 26,791,422
Accumulated net investment income (loss)................... (142,972)
Accumulated net realized gain from investment
transactions............................................. 2,284,278
Net unrealized appreciation from investments............... 4,451,569
-----------
NET ASSETS................................................. $33,384,297
===========
Class A
Net Assets............................................... $ 7,088,004
Shares................................................... 544,579
Redemption price per share............................... $ 13.02
===========
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).............. $ 13.63
===========
Class B
Net Assets............................................... $ 4,566,183
Shares................................................... 361,921
Offering price per share*................................ $ 12.62
===========
Class C
Net Assets............................................... $21,730,110
Shares................................................... 1,658,718
Offering and redemption price per share.................. $ 13.10
===========
</TABLE>
---------
* Redemption price of Class B shares varies based on length of time held.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED OCTOBER 31, 2000
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividend income........................................... $ 85,554
----------
TOTAL INCOME............................................ 85,554
EXPENSES:
Investment advisory fees.................................. $113,482
Administration fees....................................... 24,318
Distribution fees--Class A................................ 17,186
Distribution fees--Class B................................ 22,911
Custodian fees............................................ 4,053
Fund accounting fees...................................... 18,477
Transfer agent fees....................................... 20,505
Other..................................................... 16,187
--------
Total expenses before voluntary fee reductions.......... 237,119
Expenses voluntarily reduced............................ (8,593)
----------
Net Expenses............................................ 228,526
----------
NET INVESTMENT LOSS....................................... (142,972)
----------
REALIZED/UNREALIZED GAIN (LOSS) FROM INVESTMENTS:
Net realized gain from investment transactions............ 1,849,285
Change in unrealized depreciation from investments........ (384,734)
----------
Net realized/unrealized gain from investments............. 1,464,551
----------
Change in net assets resulting from operations............ $1,321,579
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
CENTURA FUNDS, INC.
SMALL CAP EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
2000 2000
------------ -----------
(UNAUDITED)
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment (loss)............................... $ (142,972) $ (245,905)
Net realized gains from investment transactions..... 1,849,285 5,554,171
Change in unrealized appreciation (depreciation)
from investments.................................. (384,734) 990,897
----------- -----------
Change in net assets resulting from operations........ 1,321,579 6,299,163
----------- -----------
DIVIDENDS TO CLASS A SHAREHOLDERS:
From net realized gains from investment
transactions...................................... -- (1,142,166)
DIVIDENDS TO CLASS B SHAREHOLDERS:
From net realized gains from investment
transactions...................................... -- (831,369)
DIVIDENDS TO CLASS C SHAREHOLDERS:
From net realized gains from investment
transactions...................................... -- (3,669,115)
----------- -----------
Change in net assets from shareholder dividends....... -- (5,642,650)
----------- -----------
Change in net assets from capital transactions........ (41,514) (6,763,844)
----------- -----------
Change in net assets.................................. 1,280,065 (6,107,331)
NET ASSETS:
Beginning of period................................. 32,104,232 38,211,563
----------- -----------
End of period....................................... $33,384,297 $32,104,232
=========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
CENTURA FUNDS, INC.
SMALL CAP EQUITY FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGH THE PERIOD INDICATED.
FINANCIAL HIGHLIGHTS, CLASS A
<TABLE>
<CAPTION>
FOR THE SIX FOR THE FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
OCTOBER 31, APRIL 30, APRIL 30, APRIL 30,
2000 2000 1999 1998 (A)
------------ ---------- ---------- ------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.............. $12.50 $12.69 $14.99 $10.00
------ ------ ------ ------
Investment Activities
Net investment income (loss).................... (0.06) (0.09) (0.06) 0.03
Net realized and unrealized gains (losses) from
investments................................... 0.58 2.31 (1.20) 5.87
------ ------ ------ ------
Total from Investment Activities................ 0.52 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.................... $13.02 $12.50 $12.69 $14.99
====== ====== ====== ======
TOTAL RETURN (EXCLUDES SALES CHARGE).............. 4.16%(c) 19.97% (8.05%) 60.75%(c)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)................. $7,088 $6,881 $3,046 $3,000
Ratio of expenses to average net assets........... 1.47%(b) 1.46% 1.48% 1.46%(b)
Ratio of net investment income (loss) to average
net assets...................................... (0.94%)(b) (0.80%) (0.43%) 0.09%(b)
Ratio of expenses to average net assets*.......... 1.72%(b) 1.71% 1.73% 1.82%(b)
Portfolio turnover rate**......................... 26% 258% 130% 71%
</TABLE>
* 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.
FINANCIAL HIGHLIGHTS, CLASS B
<TABLE>
<CAPTION>
FOR THE SIX FOR THE FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
OCTOBER 31, APRIL 30, APRIL 30, APRIL 30,
2000 2000 1999 1998 (A)
------------ ---------- ---------- ------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.............. $12.17 $12.50 $14.90 $10.00
------ ------ ------ ------
Investment Activities
Net investment (loss)........................... (0.11) (0.20) (0.14) (0.03)
Net realized and unrealized gains (losses) from
investments................................... 0.56 2.28 (1.22) 5.82
------ ------ ------ ------
Total from Investment Activities................ 0.45 2.08 (1.36) 5.79
------ ------ ------ ------
Dividends
Net investment income........................... -- -- -- --
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.................... $12.62 $12.17 $12.50 $14.90
====== ====== ====== ======
TOTAL RETURN (EXCLUDES REDEMPTION CHARGE)......... 3.70%(c) 19.09% (8.79%) 59.50%(c)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)................. $4,566 $4,578 $5,108 $4,938
Ratio of expenses to average net assets........... 2.22%(b) 2.21% 2.23% 2.21%(b)
Ratio of net investment loss to average net
assets.......................................... (1.69%)(b) (1.53%) (1.19%) (0.66%)(b)
Ratio of expenses to average net assets*.......... (d) (d) (d) 2.32%(b)
Portfolio turnover rate**......................... 26% 258% 130% 71%
</TABLE>
* 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.
(d) THERE WERE NO WAIVERS OR REIMBURSEMENTS DURING THE PERIOD.
CONTINUED
21
<PAGE>
CENTURA FUNDS, INC.
SMALL CAP EQUITY FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGH THE PERIOD INDICATED.
FINANCIAL HIGHLIGHTS, CLASS C
<TABLE>
<CAPTION>
FOR THE SIX FOR THE FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
OCTOBER 31, APRIL 30, APRIL 30, APRIL 30,
2000 2000 1999 1998 (A)
------------ ---------- ---------- ------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.............. $ 12.57 $ 12.72 $ 14.99 $ 10.00
------- ------- ------- -------
Investment Activities
Net investment income (loss).................... (0.04) (0.07) (0.02) 0.06
Net realized and unrealized gain (loss) from
investments................................... 0.57 2.33 (1.21) 5.86
------- ------- ------- -------
Total from Investment Activities................ 0.53 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.................... $ 13.10 $ 12.57 $ 12.72 $ 14.99
======= ======= ======= =======
TOTAL RETURN...................................... 4.22%(c) 20.24% (7.84%) 60.98%(c)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)................. $21,730 $20,645 $30,057 $31,583
Ratio of expenses to average net assets........... 1.22%(b) 1.21% 1.23% 1.16%(b)
Ratio of net investment income (loss) to average
net assets...................................... (0.69%)(b) (0.51%) (0.19%) 0.46%(b)
Ratio of expenses to average net assets*.......... (d) (d) (d) 1.27%(b)
Portfolio turnover rate**......................... 26% 258% 130% 71%
</TABLE>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED AND/OR REIMBURSED.
IF SUCH VOLUNTARY FEE REDUCTIONS AND/OR REIMBURSEMENTS HAD NOT OCCURRRED,
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.
(d) THERE WERE NO WAIVERS OR REIMBURSEMENTS DURING THE PERIOD.
22
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
GOVERNMENT INCOME FUND OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
U.S. GOVERNMENT AGENCY OBLIGATIONS (97.6%)
-----------------------------------------------------------------
SHARES
OR
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
FEDERAL FARM CREDIT BANK (18.4%)
6.88%, 5/1/02........................... $8,000,000 $ 8,050,000
-----------
FEDERAL HOME LOAN BANK (18.4%)
6.75%, 5/1/02........................... 2,000,000 2,008,180
7.25%, 5/15/02.......................... 6,000,000 6,067,500
-----------
8,075,680
-----------
FEDERAL HOME LOAN MORTGAGE CORPORATION (33.5%)
6.25%, 7/15/04.......................... 5,000,000 4,956,250
5.75%, 3/15/09.......................... 4,000,000 3,755,000
6.63%, 9/15/09.......................... 6,000,000 5,962,500
-----------
14,673,750
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (27.3%)
6.25%, 11/15/02......................... 7,000,000 6,976,830
6.50%, 8/15/04.......................... 5,000,000 4,998,650
-----------
11,975,480
-----------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS....................................... 42,774,910
-----------
<CAPTION>
INVESTMENT COMPANIES (0.7%)
-----------------------------------------------------------------
SHARES
OR
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
Goldman Financial Square Treasury Short
Term Money Market Fund................ $ 162,213 $ 162,213
Provident Institutional Temporary
Investment Fund....................... 162,213 162,213
-----------
TOTAL INVESTMENT COMPANIES 324,426
-----------
TOTAL INVESTMENTS
(Cost $42,573,091) (a) (98.3%).................... 43,099,336
Other assets in excess of liabilities (1.7%)........ 754,153
-----------
NET ASSETS -- 100.0%................................ $43,853,489
===========
</TABLE>
---------
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $532,692
Unrealized depreciation... (6,447)
--------
Net unrealized
appreciation............ $526,245
========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
23
<PAGE>
CENTURA FUNDS, INC.
GOVERNMENT INCOME FUND
(UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at value (cost $42,573,091).................. $43,099,336
Interest and dividends receivable......................... 1,001,595
Receivable for capital shares issued...................... 498
Prepaid expenses and other assets......................... 4,034
-----------
TOTAL ASSETS............................................ 44,105,463
LIABILITIES:
Dividends payable......................................... $234,277
Accrued expenses and other payables:
Investment advisory fees................................ 2,182
Administration fees..................................... 1,091
Distribution fees....................................... 1,103
Other................................................... 13,321
--------
TOTAL LIABILITIES....................................... 251,974
-----------
NET ASSETS:
Capital................................................... 46,193,307
Accumulated net realized loss from investment
transactions............................................ (2,866,063)
Net unrealized appreciation from investments.............. 526,245
-----------
NET ASSETS................................................ $43,853,489
===========
Class A
Net Assets.............................................. $ 4,380,982
Shares.................................................. 445,900
Redemption price per share.............................. $ 9.83
===========
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)......................... $ 10.11
===========
Class B
Net Assets.............................................. $ 255,861
Shares.................................................. 26,059
Offering price per share*............................... $ 9.82
===========
Class C
Net Assets.............................................. $39,216,646
Shares.................................................. 3,990,943
Offering and redemption price per share................. $ 9.83
===========
</TABLE>
---------
* Redemption price of Class B shares varies based on length of time held.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED OCTOBER 31, 2000
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest income............................................ $1,470,624
Dividend income............................................ 53,201
----------
TOTAL INCOME............................................. 1,523,825
EXPENSES:
Investment advisory fees................................... $69,551
Administration fees........................................ 34,775
Distribution fees--Class A................................. 11,371
Distribution fees--Class B................................. 1,250
Custodian fees............................................. 5,797
Fund accounting fees....................................... 16,488
Transfer agent fees........................................ 8,269
Other...................................................... 16,492
-------
Total expenses before voluntary fee reductions........... 163,993
Expenses voluntarily reduced............................. (5,998)
----------
Net Expenses............................................. 157,995
----------
NET INVESTMENT INCOME...................................... 1,365,830
REALIZED/UNREALIZED GAIN (LOSS) FROM INVESTMENTS:
Net realized loss from investment transactions............. (1,000,762)
Change in unrealized appreciation from investments......... 1,761,840
----------
Net realized/unrealized gain from investments.............. 761,078
----------
Change in net assets resulting from operations............. $2,126,908
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
24
<PAGE>
CENTURA FUNDS, INC.
GOVERNMENT INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
2000 2000
------------ ------------
(UNAUDITED)
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income............................ $ 1,365,830 $ 4,375,443
Net realized (losses) from investment
transactions................................... (1,000,762) (1,880,926)
Change in unrealized appreciation (depreciation)
from investments............................... 1,761,840 (1,253,852)
----------- ------------
Change in net assets resulting from operations..... 2,126,908 1,240,665
----------- ------------
DIVIDENDS TO CLASS A SHAREHOLDERS:
From net investment income....................... (128,689) (284,053)
From net realized gains from investment
transactions................................... -- (21,476)
DIVIDENDS TO CLASS B SHAREHOLDERS:
From net investment income....................... (6,472) (10,370)
From net realized gains from investment
transactions................................... -- (836)
DIVIDENDS TO CLASS C SHAREHOLDERS:
From net investment income....................... (1,230,669) (4,081,020)
From net realized gains from investment
transactions................................... -- (262,670)
----------- ------------
Change in net assets from shareholder dividends.... (1,365,830) (4,660,425)
----------- ------------
Change in net assets from capital transactions..... (5,118,009) (67,882,138)
----------- ------------
Change in net assets............................... (4,356,931) (71,301,898)
NET ASSETS:
Beginning of period.............................. 48,210,420 119,512,318
----------- ------------
End of period.................................... $43,853,489 $ 48,210,420
=========== ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
25
<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 SIX FOR THE FOR THE FOR THE FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, APRIL 30, APRIL 30, APRIL 30, APRIL 30, APRIL 30,
2000 2000 1999 1998 1997 1996
------------ ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period......... $ 9.66 $10.03 $10.19 $ 9.94 $10.01 $ 9.97
------ ------ ------ ------ ------ ------
Investment Activities
Net investment income...................... 0.28 0.50 0.50 0.55 0.56 0.57
Net realized and unrealized gains (losses)
from investments......................... 0.17 (0.33) 0.04 0.25 (0.07) 0.04
------ ------ ------ ------ ------ ------
Total from Investment Activities........... 0.45 0.17 0.54 0.80 0.49 0.61
------ ------ ------ ------ ------ ------
Dividends
Net investment income...................... (0.28) (0.50) (0.50) (0.55) (0.56) (0.57)
Net realized gains......................... -- (0.04) (0.20) -- -- --
------ ------ ------ ------ ------ ------
Total Dividends............................ (0.28) (0.54) (0.70) (0.55) (0.56) (0.57)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period............... $ 9.83 $ 9.66 $10.03 $10.19 $ 9.94 $10.01
====== ====== ====== ====== ====== ======
TOTAL RETURN (EXCLUDES SALES CHARGE)......... 4.70%(a) 1.73% 5.38% 8.21% 5.07% 6.20%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)............ $4,381 $4,493 $ 678 $ 531 $ 481 $ 526
Ratio of expenses to average net assets...... 0.90%(b) 0.88% 0.84% 0.84% 0.82% 0.85%
Ratio of net investment income to average net
assets..................................... 5.68%(b) 5.13% 4.85% 5.42% 5.63% 5.61%
Ratio of expenses to average net assets*..... 1.16%(b) 1.13% 1.09% 1.09% 1.07% (c)
Portfolio turnover rate**.................... 87% 60% 104% 121% 26% 34%
</TABLE>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED AND/OR REIMBURSED.
IF SUCH VOLUNTARY FEE REDUCTIONS AND/OR REIMBURSEMENTS HAD NOT OCCURRED,
THE 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) NOT ANNUALIZED.
(b) ANNUALIZED.
(c) THERE WERE NO WAIVERS OR REIMBURSEMENTS DURING THE PERIOD.
FINANCIAL HIGHLIGHTS, CLASS B
<TABLE>
<CAPTION>
FOR THE SIX FOR THE FOR THE FOR THE FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, APRIL 30, APRIL 30, APRIL 30, APRIL 30, APRIL 30,
2000 2000 1999 1998 1997 1996
------------ ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period......... $ 9.66 $10.03 $10.18 $ 9.94 $10.01 $ 9.97
------ ------ ------ ------ ------ ------
Investment Activities
Net investment income...................... 0.25 0.45 0.45 0.50 0.50 0.50
Net realized and unrealized gains (losses)
from investments......................... 0.16 (0.33) 0.05 0.24 (0.07) 0.04
------ ------ ------ ------ ------ ------
Total from Investment Activities........... 0.41 0.12 0.50 0.74 0.43 0.54
------ ------ ------ ------ ------ ------
Dividends
Net investment income...................... (0.25) (0.45) (0.45) (0.50) (0.50) (0.50)
Net realized gains......................... -- (0.04) (0.20) -- -- --
------ ------ ------ ------ ------ ------
Total Dividends............................ (0.25) (0.49) (0.65) (0.50) (0.50) (0.50)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period............... $ 9.82 $ 9.66 $10.03 $10.18 $ 9.94 $10.01
====== ====== ====== ====== ====== ======
TOTAL RETURN (EXCLUDES REDEMPTION CHARGE).... 4.34%(a) 1.23% 4.96% 7.58% 4.46% 5.40%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)............ $ 256 $ 232 $ 195 $ 131 $ 194 $ 176
Ratio of expenses to average net assets...... 1.41%(b) 1.38% 1.35% 1.36% 1.40% 1.61%
Ratio of net investment income to average net
assets..................................... 5.19%(b) 4.63% 4.32% 4.93% 5.04% 4.84%
Ratio of expenses to average net assets*..... 1.66%(b) 1.63% 1.60% 1.61% 1.65% (c)
Portfolio turnover rate**.................... 87% 60% 104% 121% 26% 34%
</TABLE>
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED AND/OR REIMBURSED.
IF SUCH VOLUNTARY FEE REDUCTIONS AND/OR REIMBURSEMENTS HAD NOT OCCURRED,
THE 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) NOT ANNUALIZED.
(b) ANNUALIZED.
(c) THERE WERE NO WAIVERS OR REIMBURSEMENTS DURING THE PERIOD.
CONTINUED
26
<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 SIX FOR THE FOR THE FOR THE FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, APRIL 30, APRIL 30, APRIL 30, APRIL 30, APRIL 30,
2000 2000 1999 1998 1997 1996
------------ ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period......... $ 9.66 $ 10.03 $ 10.19 $ 9.94 $ 10.01 $ 9.97
------- ------- -------- -------- -------- --------
Investment Activities
Net investment income...................... 0.29 0.53 0.52 0.57 0.59 0.60
Net realized and unrealized gains (losses)
from investments......................... 0.17 (0.33) 0.04 0.25 (0.07) 0.04
------- ------- -------- -------- -------- --------
Total from Investment Activities........... 0.46 0.20 0.56 0.82 0.52 0.64
------- ------- -------- -------- -------- --------
Dividends
Net investment income...................... (0.29) (0.53) (0.52) (0.57) (0.59) (0.60)
Net realized gains......................... -- (0.04) (0.20) -- -- --
------- ------- -------- -------- -------- --------
Total Dividends............................ (0.29) (0.57) (0.72) (0.57) (0.59) (0.60)
------- ------- -------- -------- -------- --------
Net Asset Value, End of Period............... $ 9.83 $ 9.66 $ 10.03 $ 10.19 $ 9.94 $ 10.01
======= ======= ======== ======== ======== ========
TOTAL RETURN................................. 4.83%(a) 1.99% 5.64% 8.48% 5.33% 6.47%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)............ $39,217 $43,486 $118,640 $131,068 $119,434 $109,775
Ratio of expenses to average net assets...... 0.66%(b) 0.63% 0.59% 0.59% 0.58% 0.61%
Ratio of net investment income to average net
assets..................................... 5.94%(b) 5.31% 5.11% 5.68% 5.88% 5.88%
Portfolio turnover rate**.................... 87% 60% 104% 121% 26% 34%
</TABLE>
** PORTFOLIO TURNOVER IS CALCULATED ON THE BASIS OF THE FUND AS A WHOLE
WITHOUT DISTINGUISHING BETWEEN THE CLASSES OF SHARES ISSUED.
(a) NOT ANNUALIZED.
(b) ANNUALIZED.
27
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
QUALITY INCOME FUND OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
ASSET BACKED SECURITIES (4.6%)
-----------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
BANKING & FINANCIAL SERVICES (4.6%)
American Express Credit Account Master
Trust, 6.80%, 12/15/03................ $ 500,000 $ 500,105
CIT RV Trust, Series 1999-A, Class A3,
5.96%, 4/15/11........................ 530,000 522,437
Discover Card Master Trust 1,
Series 1999-2, Class B, 6.10%,
10/15/04.............................. 750,000 741,202
Fingerhut Master Trust, Series 1998-1,
Class B, 6.29%, 2/15/02............... 600,000 595,794
Green Tree Recreational, Equipment &
Consumer Trust, Series 1997-C,
Class A1, 6.49%, 2/15/18.............. 278,507 276,616
The Money Store Equity Trust,
Class 1996-A, Series A, 7.36%,
3/15/24............................... 550,000 552,970
WFS Financial Owner Trust,
Series 1999-B, Class A3, 6.32%,
10/20/03.............................. 500,000 498,000
-----------
TOTAL ASSET BACKED SECURITIES
(Cost $3,717,374)................................. 3,687,124
-----------
<CAPTION>
CORPORATE BONDS (55.5%)
-----------------------------------------------------------------
<S> <C> <C>
AIRLINES (2.5%)
American Airlines, Inc., Series 99-1,
7.02%, 10/15/09....................... 1,000,000 974,655
AMR Corp., 9.13%, 10/24/01.............. 1,000,000 1,008,750
-----------
1,983,405
-----------
AUTOMOTIVE (2.4%)
DaimlerChrysler, 6.90%, 9/1/04.......... 1,000,000 991,250
Ford Motor Co., 7.45%, 7/16/31.......... 1,000,000 923,750
-----------
1,915,000
-----------
BANKING & FINANCIAL SERVICES (17.1%)
American Financial Group, 7.13%,
4/15/09............................... 1,000,000 876,250
AT&T Capital Corp., MTN, 6.88%,
1/16/01............................... 500,000 500,000
BankAmerica Corp., 6.38%, 2/15/08....... 1,000,000 936,250
Bear Stearns Co., Inc., 6.15%, 3/2/04... 1,000,000 966,250
Bear Stearns Co., Inc., 7.63%, 12/7/09.. 1,000,000 973,750
Capital One Bank Co., 6.65%, 3/15/04.... 1,000,000 970,000
First Union Corp, 8.00%, 11/15/02....... 750,000 765,000
GMAC, 8.38%, 2/22/05.................... 1,000,000 1,040,000
Heller Financial, Inc., 6.25%, 3/1/01... 500,000 498,750
International Lease Finance Corp., MTN,
5.78%, 3/1/01......................... 400,000 399,000
Lehman Brothers Holdings, 7.75%,
1/15/05............................... 1,250,000 1,254,687
Merrill Lynch & Co., 6.38%, 10/15/08.... 1,000,000 937,500
PNC Funding Corp., 6.13%, 9/1/03........ 1,000,000 972,500
U.S. Bancorp., 8.00%, 7/2/04............ 1,000,000 1,026,250
Wachovia Corp., 7.45%, 7/15/05.......... 1,000,000 1,012,500
<CAPTION>
CORPORATE BONDS, CONTINUED:
-----------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
Washington Mutual, Inc., 8.25%,
10/1/02............................... $ 500,000 $ 509,375
-----------
13,638,062
-----------
BUSINESS EQUIPMENT & SERVICES (0.5%)
Comdisco, Inc., 6.13%, 8/1/01........... 500,000 425,625
-----------
CABLE (1.6%)
Tele-Communications, Inc., 9.65%,
10/1/03............................... 1,275,000 1,313,250
-----------
CHEMICALS (1.3%)
E.I. Du Pont de Nemours, 8.25%,
9/15/06............................... 1,000,000 1,062,204
-----------
COMMERCIAL SERVICES (1.3%)
Hertz Corp., 7.63%, 8/15/07............. 1,000,000 1,005,000
-----------
FOREIGN AGENCY (1.3%)
Quebec Province, 7.00%, 1/30/07......... 1,000,000 1,001,250
-----------
INSURANCE (5.1%)
AIG SunAmerica, MTN, 5.75%, 2/16/09..... 1,000,000 910,775
Conseco, Inc., 6.40%, 6/15/01........... 2,425,000 2,170,375
John Hancock Global, Series 144 A,
7.90%, 7/2/10......................... 1,000,000 1,025,000
-----------
4,106,150
-----------
MEDIA (1.9%)
Knight-Ridder, Inc., 8.50%, 9/1/01...... 500,000 501,250
Time Warner, Inc., 6.10%,
12/30/01 (b).......................... 1,000,000 985,000
-----------
1,486,250
-----------
OIL/GAS (1.2%)
Conoco, Inc., 5.90%, 4/15/04............ 1,000,000 965,000
-----------
REAL ESTATE (1.2%)
Simon Property Group, Inc.,
Series MTN, 7.13%, 6/24/05............ 1,000,000 971,250
-----------
RESTAURANTS (0.6%)
Darden Restaurants, Inc., 8.38%,
9/15/05............................... 500,000 497,500
-----------
RETAIL (2.5%)
Hasbro, Inc., 7.95%, 3/15/03............ 1,000,000 1,001,250
Safeway, Inc., 5.88%, 11/15/01.......... 500,000 491,875
Sears Roebuck & Co., MTN, 8.51%,
12/27/01.............................. 500,000 504,375
-----------
1,997,500
-----------
TELECOMMUNICATIONS (4.8%)
AT&T Canada, Inc., 7.65%, 9/15/06....... 1,000,000 978,750
Qwest Capital Funding, 6.25%, 7/15/05... 1,000,000 953,750
Sprint Capital Corp., 6.38%, 5/1/09..... 1,000,000 900,000
WorldCom, Inc., 7.55%, 4/1/04........... 1,000,000 1,007,500
-----------
3,840,000
-----------
</TABLE>
CONTINUED
28
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
QUALITY INCOME FUND OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
CORPORATE BONDS, CONTINUED:
-----------------------------------------------------------------
SHARES
OR
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
TOBACCO (0.6%)
Philip Morris, 7.25%, 9/15/01........... $ 250,000 $ 249,063
Philip Morris, 7.13%, 8/15/02........... 250,000 247,500
-----------
496,563
-----------
TRANSPORTATION & SHIPPING (3.5%)
Atlas Air, Inc., 7.20%, 1/2/19.......... 962,873 901,668
Burlington Northern Santa Fe, Series H,
9.25%, 10/1/06........................ 1,000,000 1,090,000
Norfolk Southern Corp., 6.95%, 5/01/02.. 810,000 806,963
-----------
2,798,631
-----------
UTILITIES (6.1%)
Dominion Resources, Inc. Series A,
8.13%, 6/15/10........................ 1,000,000 1,032,500
Niagra Mohawk Power Co., 7.75%,
5/15/06............................... 1,000,000 1,013,750
Tennessee Valley Authorities, Series E,
6.25%, 12/15/17....................... 3,000,000 2,808,750
-----------
4,855,000
-----------
TOTAL CORPORATE BONDS (Cost $44,800,854) 44,357,640
-----------
<CAPTION>
U.S. GOVERNMENT AGENCY OBLIGATIONS (42.6%)
-----------------------------------------------------------------
<S> <C> <C>
FEDERAL HOME LOAN MORTGAGE CORPORATION (15.1%)
7.00%, 3/15/10.......................... 5,000,000 5,110,250
6.75%, 9/15/29.......................... 7,000,000 6,963,880
-----------
12,074,130
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (21.3%)
6.75%, 08/15/02......................... 1,500,000 1,507,500
7.13%, 6/15/10.......................... 3,000,000 3,097,500
7.00%, 7/1/29, Pool #504712............. 938,35 920,457
7.50%, 10/1/29, Pool #517513............ 2,400,107 2,397,851
7.00%, 11/1/29, Pool #444363............ 972,038 953,502
8.00%, 3/1/30, Pool #528675............. 951,054 963,237
7.00%, 4/1/30, Pool #531571............. 994,168 975,209
8.00%, 4/1/30, Pool #532020............. 933,990 945,955
7.25%, 5/15/30.......................... 5,000,000 5,299,999
-----------
17,061,210
-----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (6.2%)
Government National Mortgage Assoc.,
7.00%, 1/1/31......................... 5,000,000 4,926,560
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost
$33,549,405)...................................... 34,061,900
-----------
<CAPTION>
INVESTMENT COMPANIES (3.7%)
-----------------------------------------------------------------
<S> <C> <C>
Goldman Sachs Financial Square Prime
Money Market Fund..................... 1,493,498 1,493,498
<CAPTION>
INVESTMENT COMPANIES (3.7%)
-----------------------------------------------------------------
SHARES
OR
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
Provident Institutional Temporary
Investment Fund $1,493,498 $ 1,493,498
-----------
TOTAL INVESTMENT COMPANIES
(Cost $2,986,996)................................. 2,986,996
-----------
TOTAL INVESTMENTS
(Cost $85,054,629)(a)(106.4%)..................... 85,093,660
Liabilities in excess of other assets (6.40%)....... (5,107,052)
-----------
NET ASSETS (100.00%)................................ $79,986,608
===========
</TABLE>
---------
(a) Represents cost for financial reporting and federal income tax purposes and
differs from value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation........................... $ 686,814
Unrealized depreciation........................... (647,783)
---------
Net unrealized appreciation....................... $ 39,031
=========
</TABLE>
(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.
MTN -- Medium Term Note
SEE NOTES TO FINANCIAL STATEMENTS
29
<PAGE>
CENTURA FUNDS, INC.
QUALITY INCOME FUND
(UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at value (cost $85,054,629).............. $85,093,660
Interest and dividends receivable..................... 1,349,913
Receivable for capital shares issued.................. 190
Receivable for investments sold....................... 4,964,064
Prepaid expenses and other assets..................... 3,074
-----------
TOTAL ASSETS........................................ 91,410,901
LIABILITIES:
Dividends payable..................................... $ 411,568
Payable for investments purchased..................... 10,909,506
Accrued expenses and other payables:
Investment advisory fees............................ 7,864
Administration fees................................. 1,966
Distribution fees................................... 129
Other............................................... 93,260
-----------
TOTAL LIABILITIES................................... 11,424,293
-----------
NET ASSETS:
Capital............................................... 79,774,680
Accumulated undistributed net investment income....... 4,068
Accumulated net realized gain from investment
transactions........................................ 168,829
Net unrealized appreciation from investments.......... 39,031
-----------
NET ASSETS............................................ $79,986,608
===========
Class A
Net Assets.......................................... $ 301,819
Shares.............................................. 30,838
Redemption price per share.......................... $ 9.79
===========
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)..................... $ 10.07
===========
Class B (a)
Net Assets.......................................... $ 22,943
Shares.............................................. 2,344
Offering price per share*........................... $ 9.79
===========
Class C
Net Assets.......................................... $79,661,846
Shares.............................................. 8,141,131
Offering and redemption price per share............. $ 9.79
===========
</TABLE>
---------
* Redemption price of Class B shares varies bases on length of time held.
(a) For the period from June 12, 2000 (commencement of operations for Class B)
to October 31, 2000.
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED OCTOBER 31, 2000
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest income........................................... $2,487,820
Dividend income........................................... 76,867
----------
TOTAL INCOME............................................ 2,564,687
EXPENSES:
Investment advisory fees.................................. $215,278
Administration fees....................................... 53,819
Distribution fees--Class A................................ 1,027
Distribution fees--Class B................................ 81
Custodian fees............................................ 8,969
Fund accounting fees...................................... 19,395
Transfer agent fees....................................... 12,614
Other..................................................... 21,691
--------
Total expenses before voluntary fee reductions.......... 332,874
Expenses voluntarily reduced............................ (534)
----------
Net Expenses............................................ 332,340
----------
NET INVESTMENT INCOME..................................... 2,232,347
----------
REALIZED/UNREALIZED GAIN FROM INVESTMENTS:
Net realized gain from investment transactions............ 650,354
Change in unrealized appreciation from investments........ 1,378,144
----------
Net realized/unrealized gain from investments............. 2,028,498
----------
Change in net assets resulting from operations............ $4,260,845
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
30
<PAGE>
CENTURA FUNDS, INC.
QUALITY INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE PERIOD FOR THE
ENDED PERIOD ENDED
OCTOBER 31, APRIL 30,
2000 (B) 2000 (A)
-------------- ------------
(UNAUDITED)
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income................. $ 2,232,347 $ 2,344,960
Net realized gains (losses) from
investment transactions............. 650,354 (481,525)
Change in unrealized appreciation
(depreciation) from investments..... 1,378,144 (1,339,113)
-------------- ------------
Change in net assets resulting from
operations............................ 4,260,845 524,322
-------------- ------------
DIVIDENDS TO CLASS A SHAREHOLDERS:
From net investment income............ (12,272) (8,033)
DIVIDENDS TO CLASS B SHAREHOLDERS:
From net investment income............ (443) --
DIVIDENDS TO CLASS C SHAREHOLDERS:
From net investment income............ (2,219,632) (2,336,927)
-------------- ------------
Change in net assets from shareholder
dividends............................. (2,232,347) (2,344,960)
-------------- ------------
Change in net assets from capital
transactions.......................... 8,160,069 71,618,679
-------------- ------------
Change in net assets.................... 10,188,567 69,798,041
NET ASSETS:
Beginning of period................... 69,798,041 --
-------------- ------------
End of period......................... $ 79,986,608 $ 69,798,041
============== ============
</TABLE>
---------
(a) For the period from May 11, 1999 (commencement of operations for Classes A
and C) to April 31, 2000.
(b) For the periods from May 1, 2000 to October 31, 2000 (Classes A and C) and
June 12, 2000 (commencement of operations) to October 31, 2000 for
Class B.
SEE NOTES TO FINANCIAL STATEMENTS
31
<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 FOR THE
SIX MONTHS ENDED PERIOD ENDED
OCTOBER 31, APRIL 30,
2000 2000 (A)
---------------- ------------
(UNAUDITED)
<S> <C> <C>
Net Asset Value, Beginning of Period.... $9.50 $10.00
----- ------
Investment Activities
Net investment income................. 0.29 0.50
Net realized and unrealized gains
(losses) from investments........... 0.29 (0.50)
----- ------
Total from Investment Activities...... 0.58 --
----- ------
Dividends
Net investment income................. (0.29) (0.50)
----- ------
Total Dividends....................... (0.29) (0.50)
----- ------
Net Asset Value, End of Period.......... $9.79 $ 9.50
===== ======
TOTAL RETURN (EXCLUDES SALES CHARGE).... 6.18%(c) 0.03%(c)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)....... $ 302 $ 240
Ratio of expenses to average net
assets................................ 1.17%(b) 1.34%(b)
Ratio of net investment income to
average net assets.................... 5.98%(b) 5.50%(b)
Ratio of expenses to average net
assets*............................... 1.42%(b) 1.59%(b)
Portfolio turnover rate**............... 87% 314%
</TABLE>
* 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.
FINANCIAL HIGHLIGHTS, CLASS B
<TABLE>
<CAPTION>
FOR THE PERIOD
ENDED
OCTOBER 31,
2000 (A)
--------------
(UNAUDITED)
<S> <C>
Net Asset Value, Beginning of Period.............. $9.55
-----
Investment Activities
Net investment income........................... 0.28
Net realized and unrealized gains from
investments................................... 0.24
-----
Total from Investment Activities................ 0.52
-----
Dividends
Net investment income........................... (0.28)
-----
Total Dividends................................. (0.28)
-----
Net Asset Value, End of Period.................... $9.79
=====
TOTAL RETURN (EXCLUDES REDEMPTION CHARGE)......... 6.12%(c)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)................. $ 23
Ratio of expenses to average net assets........... 1.64%(b)
Ratio of net investment income to average net
assets.......................................... 5.43%(b)
Ratio of expenses to average net assets*.......... 1.89%(b)
Portfolio turnover rate**......................... 87%
</TABLE>
* 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 JUNE 12, 2000 (COMMENCEMENT OF OPERATIONS) TO OCTOBER
31, 2000.
(b) ANNUALIZED.
(c) NOT ANNUALIZED.
CONTINUED
32
<PAGE>
CENTURA FUNDS, INC.
QUALITY INCOME FUND
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED
FINANCIAL HIGHLIGHTS, CLASS C
<TABLE>
<CAPTION>
FOR THE FOR THE
SIX MONTHS ENDED PERIOD ENDED
OCTOBER 31, APRIL 30,
2000 2000 (A)
---------------- ------------
(UNAUDITED)
<S> <C> <C>
Net Asset Value, Beginning of Period.... $ 9.50 $ 10.00
------- -------
Investment Activities
Net investment income................. 0.30 0.52
Net realized and unrealized gains
(losses) from investments........... 0.29 (0.50)
------- -------
Total from Investment Activities...... 0.59 0.02
------- -------
Dividends
Net investment income................. (0.30) (0.52)
------- -------
Total Dividends....................... (0.30) (0.52)
------- -------
Net Asset Value, End of Period........ $ 9.79 $ 9.50
======= =======
TOTAL RETURN............................ 6.31%(c) 0.20%(c)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)....... $79,662 $69,558
Ratio of expenses to average net
assets................................ 0.93%(b) 1.09%(b)
Ratio of net investment income to
average net assets.................... 6.24%(b) 5.65%(b)
Ratio of expenses to average net
assets*............................... (d) 1.11%(b)
Portfolio turnover rate**............... 87% 314%
</TABLE>
* 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.
(d) THERE WERE NO WAIVERS OR REIMBURSEMENTS DURING THE PERIOD.
33
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
NORTH CAROLINA TAX-FREE BOND FUND OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
NORTH CAROLINA MUNICIPAL OBLIGATIONS (98.6%)
-----------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
Burlington, North Carolina GO, 5.20%,
2/1/14, Callable 2/1/10 @ 102, (AMBAC
Insured).............................. $ 400,000 $ 405,364
Cabarrus County GO, 5.30%, 2/1/08,
Callable 2/1/07 @ 100.5, (MBIA
Insured).............................. 935,000 970,306
Carteret County GO, 5.40%, 5/1/09,
Callable 5/1/06 @ 101.5, (MBIA
Insured).............................. 1,000,000 1,044,460
Catawba County Memorial Hospital Project
Revenue, 4.40%, 10/1/08, (AMBAC
Insured).............................. 1,000,000 964,110
Centennial Authority North Carolina
Hotel Tax Revenue, Arena Project,
4.65%, 9/1/06, (FSA Insured).......... 1,000,000 1,003,240
Charlotte Mecklenberg Hospital Authority
GO, 6.00%, 1/1/04, Callable 1/1/02 @
102................................... 620,000 641,142
Charlotte Mecklenberg Hospital Authority
GO, 4.90%, 1/15/10, Callable 1/15/07
@ 102................................. 1,000,000 990,800
Charlotte, North Carolina GO, 4.75%,
2/1/10, Callable 2/1/08 @ 101......... 435,000 436,101
Cleveland County UTGO, Refunding, 5.10%,
6/1/07, Callable 6/1/03 @ 102, (FGIC
Insured).............................. 1,400,000 1,438,122
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 1,712,249
Craven County GO, 5.40%, 6/1/02, (MBIA
Insured).............................. 1,000,000 1,015,780
Cumberland County Civic Center Project
CP, Series A, 6.20%, 12/1/07, Callable
12/1/04 @ 102, (AMBAC Insured)........ 1,535,000 1,658,367
Cumberland County Hospital Facility RB,
Refunding, 5.25%, 10/1/10, Callable
10/1/09 @ 101......................... 500,000 488,095
Dare County CP, Series A, 4.50%, 5/1/04,
(MBIA Insured)........................ 1,000,000 1,000,480
Durham County GO, 5.75%, 2/1/07,
Callable 2/1/02 @ 102................. 880,000 909,093
Durham, North Carolina GO, 5.40%,
3/1/13, Callable 3/1/10 @ 101.5....... 500,000 518,630
Fayetteville Public Works Commission
Revenue, Series A, 5.25%, 3/1/08,
Callable 3/1/05 @ 102, (AMBAC
Insured).............................. 1,280,000 1,317,734
Gaston County Public Facilities Project
CP, 4.75%, 12/1/05, (MBIA Insured).... 1,000,000 1,009,630
Gaston County UTGO, 5.70%, 3/1/05,
Callable 3/1/04 @ 100.5, (MBIA
Insured).............................. 500,000 520,425
Housing Finance Agency Revenue, 4.40%,
9/1/03, AMT........................... 400,000 397,476
Housing Finance Agency, Series 4A,
4.45%, 1/1/07, AMT.................... 250,000 245,310
<CAPTION>
NORTH CAROLINA MUNICIPAL OBLIGATIONS, CONTINUED:
-----------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
Housing Finance Agency, Series 4A,
4.45%, 7/1/07, AMT.................... $ 250,000 $ 244,988
Housing Finance Agency, Series A1,
Refunding, 4.65%, 1/1/04.............. 500,000 500,905
Housing Finance Agency, Series A1,
Refunding, 4.75%, 1/1/05.............. 500,000 502,030
Iredell County, 4.75%, 2/1/12, Callable
2/1/07 @ 102.......................... 500,000 485,665
Iredell County Memorial Hospital
Revenue, 5.10%, 10/1/11, Callable
10/1/07 @ 101, (AMBAC Insured)........ 1,000,000 1,011,740
Moore Medical Care Community Hospital
Revenue, 5.20%, 10/1/13, Callable
10/1/03 @ 102......................... 300,000 298,176
New Hanover County Medical Center
Project Revenue, 4.25%, 10/1/10,
Callable 10/1/09 @ 101, (MBIA
Insured).............................. 500,000 463,870
North Carolina Medical Care Community
Health Care RB, 4.75%, 10/1/05........ 500,000 499,220
North Carolina Medical Care Community
Hospital, 5.75%, 6/1/13, Callable
6/1/09 @ 102.......................... 525,000 522,879
North Carolina Municipal Power Agency
#1, Catawba Electric Revenue,
Refunding, 5.25%, 1/1/09, (MBIA
Insured).............................. 1,500,000 1,546,590
Onslow County UTGO, 5.60%, 3/1/05....... 1,000,000 1,042,600
Pitt County Memorial Hospital Revenue,
5.38%, 12/1/10, Callable 12/1/05
@ 102................................. 1,000,000 1,036,870
Pitt County Public Facilities CP,
Series A, 5.35%, 4/1/07, (MBIA
Insured).............................. 625,000 649,888
Raleigh UTGO, Refunding, 6.40%,
3/1/02................................ 1,250,000 1,264,675
Union County Enterprise System Water
Utility Improvement Revenue, 5.35%,
6/1/09, Callable 6/1/06 @ 102, (MBIA
Insured).............................. 500,000 520,350
University of North Carolina, Utility
System RB, Refunding, 5.00%, 8/1/09,
Callable 8/1/02 @ 102................. 1,460,000 1,474,542
Wake Forest University Education
Facility, 5.00%, 11/1/12, Callable
11/1/07 @ 102, Sinkable 11/1/09
@ 100................................. 500,000 501,980
Wilkes County UTGO, Refunding, 5.20%,
6/1/05, Callable 6/1/03 @ 101......... 1,275,000 1,306,760
Winston Salem CP, Series A, 5.30%,
6/1/09, Callable 6/1/06 @ 102,
Sinkable 6/1/08 @ 100................. 1,000,000 1,035,600
Winston Salem State University Revenue,
Refunding, 4.75%, 1/1/10, Callable
1/1/09 @ 101, (MBIA Insured).......... 500,000 496,705
</TABLE>
CONTINUED
34
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
NORTH CAROLINA TAX-FREE BOND FUND OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
NORTH CAROLINA MUNICIPAL OBLIGATIONS, CONTINUED:
-----------------------------------------------------------------
SHARES
OR
PRINCIPAL MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
Winston Salem State University Revenue,
Refunding, 4.85%, 1/1/11, Callable
1/1/09 @ 101, (MBIA Insured) $ 500,000 $ 495,890
WINSTON SALEM WATER & SEWER SYSTEM RB,
6.30%, 6/1/06, PREREFUNDED 6/1/02
@ 102 1,000,000 1,047,450
-----------
TOTAL NORTH CAROLINA MUNICIPAL OBLIGATIONS (Cost
$35,079,419)...................................... 35,636,287
-----------
<CAPTION>
INVESTMENT COMPANIES (0.2%)
-----------------------------------------------------------------
<S> <C> <C>
Institutional Liquid Assets Tax-Free
Money Market Fund..................... 33,860 33,860
PNC Investment Money Market Fund........ 33,860 33,860
-----------
TOTAL INVESTMENT COMPANIES
(Cost $67,720).................................... 67,720
-----------
TOTAL INVESTMENTS
(Cost $35,147,139) (a) (98.8%).................... 35,704,007
Other assets in excess of liabilities (1.2%)........ 429,035
-----------
NET ASSETS (100.00%)................................ $36,133,042
===========
</TABLE>
---------
(a) Represents cost for financial reporting and federal income tax purposes and
differs from value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $ 697,725
Unrealized depreciation... (140,857)
---------
Net unrealized
appreciation............ $ 556,868
=========
</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
35
<PAGE>
CENTURA FUNDS, INC.
NORTH CAROLINA TAX-FREE BOND FUND
(UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at value (cost $35,147,139)................. $35,704,007
Interest and dividends receivable........................ 563,125
Receivable for capital shares issued..................... 2,925
Prepaid expenses......................................... 4,306
-----------
TOTAL ASSETS........................................... 36,274,363
LIABILITIES:
Dividends payable........................................ $127,133
Accrued expenses and other payables:
Investment advisory fees............................... 2,089
Administration fees.................................... 776
Distribution fees...................................... 1,203
Other.................................................. 10,120
--------
TOTAL LIABILITIES...................................... 141,321
-----------
NET ASSETS:
Capital.................................................. 35,660,904
Accumulated undistributed (dividends in excess of) net
investment income (loss)............................... (19,969)
Accumulated net realized loss from investment
transactions........................................... (64,761)
Net unrealized appreciation from investments............. 556,868
-----------
NET ASSETS............................................... $36,133,042
===========
Class A
Net Assets............................................. $ 4,298,808
Shares................................................. 423,453
Redemption price per share............................. $ 10.15
===========
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).............................................. $ 10.44
===========
Class B
Net Assets............................................. $ 461,761
Shares................................................. 45,466
Offering price per share*.............................. $ 10.16
===========
Class C
Net Assets............................................. $31,372,473
Shares................................................. 3,090,327
Offering and redemption price per share................ $ 10.15
===========
</TABLE>
---------
* Redemption price of Class B shares varies based on length of time held.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED OCTOBER 31, 2000
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest income............................................ $ 901,367
Dividend income............................................ 9,441
----------
TOTAL INCOME............................................. 910,808
EXPENSES:
Investment advisory fees................................... $64,608
Administration fees........................................ 27,689
Distribution fees--Class A................................. 10,914
Distribution fees--Class B................................. 2,307
Custodian fees............................................. 4,617
Fund accounting fees....................................... 18,505
Transfer agent fees........................................ 8,813
Other...................................................... 16,144
-------
Total expenses before voluntary fee reductions........... 153,597
Expenses voluntarily reduced............................. (9,726)
----------
Net Expenses............................................. 143,871
----------
NET INVESTMENT INCOME...................................... 766,937
----------
REALIZED/UNREALIZED GAIN (LOSS) FROM INVESTMENTS:
Net realized loss from investment transactions............. (17,197)
Change in unrealized appreciation from investments......... 874,460
----------
Net realized/unrealized gain from investments.............. 857,263
----------
Change in net assets resulting from operations............. $1,624,200
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
36
<PAGE>
CENTURA FUNDS, INC.
NORTH CAROLINA TAX-FREE BOND FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
2000 2000
------------ -----------
(UNAUDITED)
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income................. $ 766,937 $ 1,659,610
Net realized gains (losses) from
investment transactions............. (17,197) 5,046
Change in unrealized appreciation
(depreciation) from investments..... 874,460 (2,155,715)
------------ -----------
Change in net assets resulting from
operations............................ 1,624,200 (491,059)
------------ -----------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income............ (86,162) (181,790)
In excess of net investment income.... (2,548)
From net realized gains from
investment transactions............. -- (11,939)
DISTRIBUTIONS TO CLASS B SHAREHOLDERS:
From net investment income............ (7,943) (17,741)
In excess of net investment income.... (315)
From net realized gains from
investment transactions............. -- (1,248)
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income............ (672,832) (1,460,079)
In excess of net investment income.... -- (20,843)
From net realized gains from
investment transactions............. -- (86,423)
------------ -----------
Change in net assets from shareholder
distributions......................... (766,937) (1,782,926)
------------ -----------
Change in net assets from capital
transactions.......................... (2,187,525) (5,221,478)
------------ -----------
Change in net assets.................... (1,330,262) (7,495,463)
NET ASSETS:
Beginning of period................... 37,463,304 44,958,767
------------ -----------
End of period......................... $ 36,133,042 $37,463,304
============ ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
37
<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 SIX FOR THE FOR THE FOR THE FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, APRIL 30, APRIL 30, APRIL 30, APRIL 30, APRIL 30,
2000 2000 1999 1998 1997 1996
------------ ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period......... $ 9.91 $10.45 $10.30 $ 9.98 $10.04 $ 9.98
------ ------ ------ ------ ------ ------
Investment Activities
Net investment income...................... 0.20 0.38 0.41 0.43 0.43 0.42
Net realized and unrealized gains (losses)
from investments......................... 0.24 (0.51) 0.20 0.32 0.03 0.13
------ ------ ------ ------ ------ ------
Total from Investment Activities........... 0.44 (0.13) 0.61 0.75 0.46 0.55
------ ------ ------ ------ ------ ------
Distributions
Net investment income...................... (0.20) (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........................ (0.20) (0.41) (0.46) (0.43) (0.52) (0.49)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period............... $10.15 $ 9.91 $10.45 $10.30 $ 9.98 $10.04
====== ====== ====== ====== ====== ======
TOTAL RETURN (EXCLUDES SALES CHARGE)......... 4.47%(a) (1.15%) 5.96% 7.61% 4.71% 5.50%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)............ $4,299 $4,554 $4,870 $4,664 $3,823 $3,927
Ratio of expenses to average net assets...... 0.99%(b) 0.98% 0.82% 0.69% 0.69% 0.68%
Ratio of net investment income to average net
assets..................................... 3.96%(b) 3.85% 3.89% 4.19% 4.31% 3.98%
Ratio of expenses to average net assets*..... 1.26%(b) 1.26% 1.26% 1.29% 1.30% 1.04%
Portfolio turnover rate**.................... 2% 14% 11% 29% 34% 80%
</TABLE>
* 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) NOT ANNUALIZED.
(b) ANNUALIZED.
FINANCIAL HIGHLIGHTS, CLASS B
<TABLE>
<CAPTION>
FOR THE SIX FOR THE FOR THE FOR THE FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, APRIL 30, APRIL 30, APRIL 30, APRIL 30, APRIL 30,
2000 2000 1999 1998 1997 1996
------------ ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period......... $ 9.92 $10.46 $10.30 $ 9.98 $10.04 $ 9.98
------ ------ ------ ------ ------ ------
Investment Activities
Net investment income...................... 0.17 0.33 0.36 0.38 0.37 0.34
Net realized and unrealized gains (losses)
from investments......................... 0.24 (0.51) 0.21 0.32 0.03 0.13
------ ------ ------ ------ ------ ------
Total from Investment Activities........... 0.41 (0.18) 0.57 0.70 0.40 0.47
------ ------ ------ ------ ------ ------
Distributions
Net investment income...................... (0.17) (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........................ (0.17) (0.36) (0.41) (0.38) (0.46) (0.41)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period............... $10.16 $ 9.92 $10.46 $10.30 $ 9.98 $10.04
====== ====== ====== ====== ====== ======
TOTAL RETURN (EXCLUDES REDEMPTION CHARGE).... 4.21%(a) (1.64%) 5.53% 7.09% 4.11% 4.72%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)............ $ 462 $ 449 $ 570 $ 511 $ 430 $ 393
Ratio of expenses to average net assets...... 1.49%(b) 1.48% 1.32% 1.18% 1.27% 1.44%
Ratio of net investment income to average net
assets..................................... 3.45%(b) 3.34% 3.38% 3.70% 3.73% 3.30%
Ratio of expenses to average net assets*..... 1.77%(b) 1.76% 1.76% 1.78% 1.88% 1.80%
Portfolio turnover rate**.................... 2% 14% 11% 29% 34% 80%
</TABLE>
* 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) NOT ANNUALIZED.
(b) ANNUALIZED.
CONTINUED
38
<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 SIX FOR THE FOR THE FOR THE FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, APRIL 30, APRIL 30, APRIL 30, APRIL 30, APRIL 30,
2000 2000 1999 1998 1997 1996
------------ ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period......... $ 9.91 $ 10.45 $ 10.30 $ 9.98 $ 10.04 $ 9.98
------- ------- ------- ------- ------- -------
Investment Activities
Net investment income...................... 0.21 0.41 0.43 0.46 0.46 0.44
Net realized and unrealized gains (losses)
from investments......................... 0.24 (0.51) 0.20 0.32 0.03 0.13
------- ------- ------- ------- ------- -------
Total from Investment Activities........... 0.45 (0.10) 0.63 0.78 0.49 0.57
------- ------- ------- ------- ------- -------
Distributions
Net investment income...................... (0.21) (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........................ (0.21) (0.44) (0.48) (0.46) (0.55) (0.51)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period............... $ 10.15 $ 9.91 $ 10.45 $ 10.30 $ 9.98 $ 10.04
======= ======= ======= ======= ======= =======
TOTAL RETURN................................. 4.60%(a) (0.90%) 6.22% 7.89% 4.97% 5.78%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000)............ $31,372 $32,461 $39,519 $37,456 $32,159 $37,009
Ratio of expenses to average net assets...... 0.74%(b) 0.73% 0.56% 0.44% 0.44% 0.44%
Ratio of net investment income to average net
assets..................................... 4.21%(b) 4.09% 4.15% 4.44% 4.56% 4.32%
Ratio of expenses to average net assets*..... 0.76%(b) 0.76% 0.76% 0.79% 0.80% 0.80%
Portfolio turnover rate**.................... 2% 14% 11% 29% 34% 80%
</TABLE>
* 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) NOT ANNUALIZED.
(b) ANNUALIZED.
39
<PAGE>
CENTURA FUNDS, INC. SCHEDULE OF PORTFOLIO INVESTMENTS
MONEY MARKET FUND OCTOBER 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
COMMERCIAL PAPER (60.0%)
------------------------------------------------------------------
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT COST
----------- -----------
<S> <C> <C>
AUTOMOTIVE (3.3%)
Daimler Chysler Corp., 6.49%, 11/6/00... $ 2,000,000 $ 1,998,197
-----------
BANKING & FINANCIAL SERVICES (22.2%)
American Express Co., 6.48%, 11/15/00... 3,000,000 2,992,440
Ford Motor Credit Corp., 6.48%,
11/8/00............................... 2,000,000 1,997,480
General Electric Capital Corp., 6.46%,
11/9/00............................... 1,000,000 998,564
General Motors Acceptance Corp., 6.48%,
11/9/00............................... 2,500,000 2,496,400
Merrill Lynch & Co., 6.48%, 11/2/00..... 2,000,000 1,999,640
Salomon Smith Barney Holdings Co.,
6.48%, 11/6/00........................ 3,000,000 2,997,301
-----------
13,481,825
-----------
CHEMICALS (4.9%)
E.I. Dupont de Nemours Co., 6.46%,
11/7/00............................... 3,000,000 2,996,770
-----------
COMPUTER INDUSTRY (4.9%)
IBM Corp., 6.49%, 11/7/00............... 3,000,000 2,996,755
-----------
ENERGY (9.9%)
Chevron Corp., 6.45%, 11/10/00.......... 3,000,000 2,995,163
Texaco, Inc., 6.47%, 11/3/00............ 3,000,000 2,998,921
-----------
5,994,084
-----------
FOOD AND BEVERAGES (9.9%)
Coca Cola Co., 6.45%, 11/8/00........... 3,000,000 2,996,238
Nestle Capital Corp., 6.43%, 11/6/00.... 3,000,000 2,997,320
-----------
5,993,558
-----------
TRANSPORTATION & SHIPPING (4.9%)
United Parcel Services, 6.40%,
11/15/00.............................. 3,000,000 2,992,533
-----------
TOTAL COMMERCIAL PAPER
(Cost $36,453,722)................................. 36,453,722
-----------
<CAPTION>
U.S. GOVERNMENT AGENCY (31.2%)
------------------------------------------------------------------
<S> <C> <C>
FEDERAL HOME LOAN BANK (31.2%)
6.45%, 11/1/00.......................... 19,000,000 19,000,000
-----------
TOTAL U.S. GOVERNMENT AGENCY
(Cost $19,000,000) 19,000,000
-----------
<CAPTION>
INVESTMENT COMPANIES (9.4%)
------------------------------------------------------------------
<S> <C> <C>
Goldman Sachs Financial Square Prime
Money Market Fund..................... 2,780,971 2,780,971
Provident Institutional Temporary
Investment Fund....................... 2,932,346 2,932,346
-----------
TOTAL INVESTMENT COMPANIES
(Cost $5,713,317).................................. 5,713,317
-----------
<CAPTION>
INVESTMENT COMPANIES, CONTINUED:
------------------------------------------------------------------
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT COST
----------- -----------
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $61,167,039)(a) (100.6%)..................... $61,167,039
Liabilities in excess of other assets (0.6%)......... (351,742)
-----------
TOTAL NET ASSETS -- (100.0%)......................... $60,815,297
===========
</TABLE>
---------
(a) Cost for federal income tax purposes and financial reporting are the same.
SEE NOTES TO FINANCIAL STATEMENTS
40
<PAGE>
CENTURA FUNDS, INC.
MONEY MARKET FUND
(UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at value (cost $61,167,039)................. $61,167,039
Interest and dividends receivable........................ 16,554
Receivable for capital shares issued..................... 11,575
Deferred organization costs.............................. 14,784
Prepaid expenses......................................... 5,772
-----------
TOTAL ASSETS........................................... 61,215,724
LIABILITIES:
Dividends payable........................................ $350,126
Payable for capital shares redeemed...................... 15,573
Accrued expenses and other payables:
Investment advisory fees............................... 202
Administration fees.................................... 302
Distribution fees...................................... 15,076
Service fees--Class A.................................. 10,051
Other.................................................. 9,097
--------
TOTAL LIABILITIES...................................... 400,427
-----------
NET ASSETS:
Capital.................................................. 60,824,785
Accumulated net realized loss from investment
transactions........................................... (9,488)
-----------
NET ASSETS............................................... $60,815,297
===========
Class A
Net Assets............................................. $59,636,687
Shares................................................. 59,640,888
Offering and redemption price per share................ $ 1.00
===========
Class C
Net Assets............................................. $ 1,178,610
Shares................................................. 1,183,897
Offering and redemption price per share................ $ 1.00
===========
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED OCTOBER 31, 2000
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest income........................................... $2,591,453
Dividend income........................................... 203,317
----------
TOTAL INCOME............................................ 2,794,770
EXPENSES:
Investment advisory fees.................................. $130,560
Administration fees....................................... 65,280
Distribution fees--Class A................................ 140,844
Service fees--Class A..................................... 70,422
Custodian fees............................................ 10,880
Fund accounting fees...................................... 16,702
Transfer agent fees....................................... 18,568
Other..................................................... 23,246
--------
Total expenses before voluntary fee reductions or
reimbursements........................................ 476,502
Expenses voluntarily reduced or reimbursed.............. (223,921)
----------
Net Expenses............................................ 252,581
----------
NET INVESTMENT INCOME..................................... 2,542,189
----------
Change in net assets resulting from operations............ $2,542,189
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
41
<PAGE>
CENTURA FUNDS, INC.
MONEY MARKET FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
2000 2000
------------ ------------
(UNAUDITED)
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income........................... $ 2,542,189 $ 5,605,720
Net realized (losses) from investment
transactions.................................. -- (9,488)
------------ ------------
Change in net assets resulting from operations.... 2,542,189 5,596,232
------------ ------------
DIVIDENDS TO CLASS A SHAREHOLDERS:
From net investment income...................... (1,608,099) (2,037,325)
DIVIDENDS TO CLASS C SHAREHOLDERS:
From net investment income...................... (934,090) (3,568,395)
------------ ------------
Change in net assets from shareholder dividends... (2,542,189) (5,605,720)
------------ ------------
Change in net assets from capital transactions.... (72,292,648) 68,905,851
------------ ------------
Change in net assets.............................. (72,292,648) 68,896,363
NET ASSETS:
Beginning of period............................. 133,107,945 64,211,582
------------ ------------
End of period................................... $ 60,815,297 $133,107,945
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
42
<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 SIX FOR THE FOR THE
MONTHS ENDED YEAR ENDED PERIOD ENDED
OCTOBER 31, APRIL 30, APRIL 30,
2000 2000 1999 (A)
------------ ---------- ------------
(UNAUDITED)
<S> <C> <C> <C>
Net Asset Value, Beginning of $ 1.00 $ 1.00 $ 1.00
Period...........................
------- ------- ------
Investment Activities
Net investment income............ 0.029 0.046 0.038
------- ------- ------
Total from Investment
Activities..................... 0.029 0.046 0.038
------- ------- ------
Dividends
Net investment income............ (0.029) (0.046) (0.038)
------- ------- ------
Total Dividends.................. (0.029) (0.046) (0.038)
------- ------- ------
Net Asset Value, End of Period..... $ 1.00 $ 1.00 $ 1.00
======= ======= ======
TOTAL RETURN....................... 2.91%(c) 4.75% 3.91%(c)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period
(000)............................ $59,637 $55,063 $ 27
Ratio of expenses to average net
assets........................... 0.75%(b) 0.83% 0.92%(b)
Ratio of net investment income to
average net assets............... 5.73%(b) 4.90% 4.15%(b)
Ratio of expenses to average net
assets*.......................... 1.36%(b) 1.33% 1.46%(b)
</TABLE>
* 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.
FINANCIAL HIGHLIGHTS, CLASS C
<TABLE>
<CAPTION>
FOR THE SIX FOR THE FOR THE
MONTHS ENDED YEAR ENDED PERIOD ENDED
OCTOBER 31, APRIL 30, APRIL 30,
2000 2000 1999 (A)
------------ ---------- ------------
(UNAUDITED)
<S> <C> <C> <C>
Net Asset Value, Beginning of $ 1.00 $ 1.00 $ 1.00
Period...........................
------ ------- -------
Investment Activities
Net investment income............ 0.031 0.052 0.046
------ ------- -------
Total from Investment
Activities..................... 0.031 0.052 0.046
------ ------- -------
Dividends
Net investment income............ (0.031) (0.052) (0.046)
------ ------- -------
Total Dividends.................. (0.031) (0.052) (0.046)
------ ------- -------
Net Asset Value, End of Period..... $ 1.00 $ 1.00 $ 1.00
====== ======= =======
TOTAL RETURN....................... 3.17%(c) 5.37% 4.70%(c)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period
(000)............................ $1,179 $78,044 $64,184
Ratio of expenses to average net
assets........................... 0.27%(b) 0.27% 0.20%(b)
Ratio of net investment income to
average net assets............... 6.10%(b) 5.27% 5.00%(b)
Ratio of expenses to average net
assets*.......................... 0.61%(b) 0.61% 0.72%(b)
</TABLE>
* 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.
43
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000
(UNAUDITED)
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 October 31, 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, 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. 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 Small Cap600 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.
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
CONTINUED
44
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
OCTOBER 31, 2000
(UNAUDITED)
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:
OPTIONS
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
45
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
OCTOBER 31, 2000
(UNAUDITED)
different from the current market value. Written options involve financial
risk which may exceed amounts reflected in the accompanying financial
statements.
FUTURES CONTRACTS
Certain Funds may enter into contracts for the future delivery of securities
or foreign currencies and futures contracts based on a specific security,
class of securities, foreign currency or an index, purchase or sell options
on any such futures contracts and engage in related closing transactions. A
futures contract on a securities index is an agreement obligating either
party to pay, and entitling the other party to receive, while the contract
is outstanding, cash payments based on the level of a specified securities
index. The Company may enter into futures contracts in an effort to hedge
against market risks. The acquisition of put and call options on futures
contracts will give the Company the right (but not the obligation), for a
specified price, to sell or to purchase the underlying futures contract,
upon exercise of the option, at any time during the option period. Futures
transactions involve brokerage costs and require the Company to segregate
assets to cover contracts that would require it to purchase securities or
currencies. A Fund may lose the expected benefit of futures transactions if
interest rates, exchange rates or securities prices change in an
unanticipated manner. Such unanticipated changes may also result in lower
overall performance than if the Fund had not entered into any futures
transactions. In addition, the value of a Fund's futures positions may not
prove to be perfectly or even highly correlated with the value of its
portfolio securities or foreign currencies, limiting a Fund's ability to
hedge effectively against interest rate, exchange rate and/or market risk
and giving rise to additional risks. There is no assurance of liquidity in
the secondary market for purposes of closing out futures positions.
3. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
Centura Bank ("Advisor") serves as the Company's Investment Advisor and
custodian. 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
46
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
OCTOBER 31, 2000
(UNAUDITED)
For the six months ended October 31, 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 OTHER EXPENSES
AVERAGE DAILY FEES VOLUNTARILY FEES VOLUNTARILY ---------------- ------------ VOLUNTARILY
NET ASSETS REDUCED REDUCED CLASS A CLASS B CLASS A REIMBURSED
--------------- ---------------- ---------------- ------- ------- ------------ --------------
<S> <C> <C> <C> <C> <C> <C> <C>
Large Cap Equity Fund.... 0.70% $ -- $ -- $24,049 $ -- $ -- $ --
Mid Cap Equity Fund...... 0.70% -- -- 39,588 -- -- --
Small Cap Equity Fund.... 0.70% -- -- 8,593 -- -- --
Government Income Fund... 0.30% -- -- 5,685 313 -- --
Quality Income Fund...... 0.60% -- -- 514 20 -- --
North Carolina Tax-Free
Bond Fund.............. 0.35% -- 3,692 5,457 577 -- --
Money Market Fund........ 0.30% 103,243 52,225 56,338 -- 12,115 --
</TABLE>
In addition, the Distributor also retains a portion of the front-end sales
charge. The following is a summary of dealer commissions paid to the
Distributor and Centura Bank for Class A shares for the six months ended
October 31, 2000:
<TABLE>
<CAPTION>
DISTRIBUTOR CENTURA BANK
----------- ------------
<S> <C> <C>
Large Cap Equity Fund................... $143 $4,777
Mid Cap Equity Fund..................... 292 6,851
Small Cap Equity Fund................... 54 1,180
Government Income Fund.................. 7 65
</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 six months ended
October 31, 2000:
<TABLE>
<CAPTION>
DISTRIBUTOR CENTURA BANK
----------- ------------
<S> <C> <C>
Large Cap Equity Fund................... $342 $6,986
Mid Cap Equity Fund..................... 464 7,713
Small Cap Equity Fund................... 71 1,583
Government Income Fund.................. -- 68
</TABLE>
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
47
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
OCTOBER 31, 2000
(UNAUDITED)
The North Carolina Tax-Free Bond Fund had the following concentrations by
sector at October 31, 2000 (as a percentage of total investments):
<TABLE>
<S> <C>
General Obligation................................ 29.0%
Hospitals......................................... 19.8%
Utilities......................................... 21.1%
Certificates of Participation..................... 14.7%
Universities...................................... 4.3%
Housing........................................... 5.4%
Recreational...................................... 2.9%
Public Improvement................................ 1.4%
Development....................................... 1.2%
Investment Companies.............................. 0.2%
------
100.0%
======
</TABLE>
5. SECURITIES TRANSACTIONS
The cost of securities purchased and proceeds from securities sold
(excluding short-term securities) for the six months ended October 31, 2000
were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C>
Large Cap Equity Fund................... $42,077,802 $41,236,948
Mid Cap Equity Fund..................... 33,338,192 38,107,564
Small Cap Equity Fund................... 8,559,223 8,200,875
Government Income Fund.................. 37,439,967 38,072,102
Quality Income Fund..................... 80,039,963 60,283,910
North Carolina Tax-Free Bond Fund....... 800,760 2,914,085
</TABLE>
CONTINUED
48
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
OCTOBER 31, 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:
<TABLE>
<CAPTION>
LARGE CAP EQUITY MID CAP EQUITY SMALL CAP EQUITY
FUND FUND FUND
------------------------- -------------------------- --------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30,
2000 2000 2000 2000 2000 2000
------------ ----------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED) (UNAUDITED)
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares
issued.................... $ 3,284,381 $18,366,226 $ 4,332,962 $ 23,439,125 $ 1,455,826 $ 6,001,578
Dividends reinvested........ -- 276,475 14,423 7,305,081 -- 1,140,174
Cost of shares redeemed..... (3,458,331) (4,038,784) (6,179,262) (12,693,729) (1,556,337) (3,240,141)
----------- ----------- ----------- ------------ ------------ ------------
Class A capital
transactions.............. (173,950) 14,603,917 (1,831,877) 18,050,477 (100,511) 3,901,611
----------- ----------- ----------- ------------ ------------ ------------
CLASS B
Proceeds from shares
issued.................... 636,540 3,980,072 558,236 1,236,786 120,063 262,005
Dividends reinvested........ 9 116,387 -- 3,984,051 -- 830,828
Cost of shares redeemed..... (766,963) (1,161,041) (1,444,229) (6,359,323) (295,670) (1,631,254)
----------- ----------- ----------- ------------ ------------ ------------
Class B capital
transactions.............. (130,414) 2,935,418 (885,993) (1,138,486) (175,607) (538,421)
----------- ----------- ----------- ------------ ------------ ------------
CLASS C
Proceeds from shares
issued.................... 26,882,606 113,306,139 24,926,432 39,926,614 3,153,793 12,396,052
Dividends reinvested........ 3,247 3,132,857 48,720 18,881,890 -- 3,663,016
Cost of shares redeemed..... (22,850,060) (82,824,997) (18,796,128) (111,440,207) (2,919,189) (26,186,102)
----------- ----------- ----------- ------------ ------------ ------------
Class C capital
transactions.............. 4,035,793 33,613,999 6,179,024 (52,631,703) 234,604 (10,127,034)
----------- ----------- ----------- ------------ ------------ ------------
Net increase (decrease) from
capital transactions........ $ 3,731,429 $51,153,334 $ 3,461,154 $(35,719,712) $ (41,514) $ (6,763,844)
=========== =========== =========== ============ ============ ============
SHARE TRANSACTIONS:
CLASS A
Issued...................... 215,753 1,310,974 293,543 1,545,411 116,243 461,636
Reinvested.................. -- 18,598 989 595,364 -- 102,904
Redeemed.................... (226,965) (274,440) (409,533) (889,630) (122,081) (254,254)
----------- ----------- ----------- ------------ ------------ ------------
Change in Class A Shares.... (11,212) 1,055,132 (115,001) 1,251,145 (5,838) 310,286
----------- ----------- ----------- ------------ ------------ ------------
CLASS B
Issued...................... 41,684 271,293 39,011 91,482 9,784 21,298
Reinvested.................. -- 7,918 -- 337,057 -- 76,786
Redeemed.................... (50,611) (78,441) (101,685) (438,595) (24,052) (130,568)
----------- ----------- ----------- ------------ ------------ ------------
Change in Class B Shares.... (8,927) 200,770 (62,674) (10,056) (14,268) (32,484)
----------- ----------- ----------- ------------ ------------ ------------
CLASS C
Issued...................... 1,744,599 7,816,777 1,688,507 2,933,964 244,831 986,472
Reinvested.................. 201 211,311 3,266 1,527,465 -- 328,817
Redeemed.................... (1,505,329) (5,694,408) (1,259,470) (7,492,265) (228,015) (2,036,699)
----------- ----------- ----------- ------------ ------------ ------------
Change in Class C Shares.... 239,471 2,333,680 432,303 (3,030,836) 16,816 (721,410)
----------- ----------- ----------- ------------ ------------ ------------
Net increase (decrease) from
share transactions.......... 219,332 3,589,582 254,628 (1,789,747) (3,290) (443,608)
=========== =========== =========== ============ ============ ============
</TABLE>
CONTINUED
49
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
OCTOBER 31, 2000
<TABLE>
<CAPTION>
GOVERNMENT INCOME QUALITY INCOME NORTH CAROLINA TAX-FREE
FUND FUND BOND FUND
--------------------------- -------------------------- --------------------------
FOR THE SIX FOR THE FOR THE FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED MONTHS ENDED YEAR ENDED
OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30,
2000 2000 2000 (A) 2000 (B) 2000 2000
------------ ------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED) (UNAUDITED)
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares
issued.................... $ 960,738 $ 7,733,774 $ 389,538 $ 376,989 $ 6,932 $ 215,992
Dividends reinvested........ 127,741 285,180 10,720 6,908 83,284 182,289
Cost of shares redeemed..... (1,275,652) (4,042,854) (350,722) (135,660) (445,742) (459,396)
------------ ------------- ------------ ------------ ------------ ------------
Class A capital
transactions.............. (187,173) 3,976,100 49,536 248,237 (355,526) (61,115)
------------ ------------- ------------ ------------ ------------ ------------
CLASS B
Proceeds from shares
issued.................... 15,103 82,167 $ 22,000 $ -- -- 57,245
Dividends reinvested........ 4,624 9,232 337 -- 6,040 15,753
Cost of shares redeemed..... (304) (46,328) -- -- (4,100) (164,490)
------------ ------------- ------------ ------------ ------------ ------------
Class B capital
transactions.............. 19,423 45,071 $ 22,337 $ -- 1,940 (91,492)
------------ ------------- ------------ ------------ ------------ ------------
CLASS C
Proceeds from shares
issued.................... 7,538,941 40,867,076 21,249,015 97,963,538 1,648,944 8,977,205
Dividends reinvested........ 635,620 2,097,378 876,509 898,945 10,637 120,445
Cost of shares redeemed..... (13,124,820) (114,867,763) (14,037,328) (27,492,041) (3,493,520) (14,166,521)
------------ ------------- ------------ ------------ ------------ ------------
Class C capital
transactions.............. (4,950,259) (71,903,309) 8,088,196 71,370,442 (1,833,939) (5,068,871)
------------ ------------- ------------ ------------ ------------ ------------
Net increase (decrease) from
capital transactions........ $ (5,118,009) $ (67,882,138) $ 8,160,069 $ 71,618,679 $ (2,187,525) $ (5,221,478)
============ ============= ============ ============ ============ ============
SHARE TRANSACTIONS:
CLASS A
Issued...................... 98,737 783,712 40,292 38,602 679 21,213
Reinvested.................. 13,156 29,185 1,110 715 8,311 18,069
Redeemed.................... (130,962) (415,464) (35,852) (14,029) (44,864) (45,807)
------------ ------------- ------------ ------------ ------------ ------------
Change in Class A Shares.... (19,069) 397,433 5,550 25,288 (35,874) (6,525)
------------ ------------- ------------ ------------ ------------ ------------
CLASS B
Issued...................... 1,574 8,386 2,309 -- -- 5,589
Reinvested.................. 476 943 35 -- 602 1,559
Redeemed.................... (32) (4,762) -- -- (405) (16,399)
------------ ------------- ------------ ------------ ------------ ------------
Change in Class B Shares.... 2,018 4,567 2,344 -- 197 (9,251)
------------ ------------- ------------ ------------ ------------ ------------
CLASS C
Issued...................... 775,547 4,163,117 2,187,425 10,065,921 163,586 891,212
Reinvested.................. 65,455 213,420 91,103 92,808 1,061 11,968
Redeemed.................... (1,349,886) (11,700,031) (1,459,474) (2,836,652) (348,740) (1,409,004)
------------ ------------- ------------ ------------ ------------ ------------
Change in Class C Shares.... (508,884) (7,323,494) 819,054 7,322,077 (184,093) (505,824)
------------ ------------- ------------ ------------ ------------ ------------
Net increase (decrease) from
share transactions.......... (525,935) (6,921,494) 826,948 7,347,365 (219,770) (521,600)
============ ============= ============ ============ ============ ============
</TABLE>
---------
(a) For the periods from May 1, 2000 to October 31, 2000 (Classes A and C), and
June 12, 2000 (commencement of operations) to October 31, 2000 for
Class B.
(b) For the period from May 11, 1999 (commencement of operations for Classes A
and C) to April 30, 2000.
CONTINUED
50
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
OCTOBER 31, 2000
<TABLE>
<CAPTION>
MONEY MARKET
FUND
---------------------------
FOR THE SIX FOR THE
MONTHS ENDED PERIOD ENDED
OCTOBER 31, APRIL 30,
2000 2000
------------ -------------
<S> <C> <C>
(UNAUDITED)
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares
issued.................... $ 99,331,704 $ 201,692,061
Dividends reinvested........ 1,546,757 1,767,213
Cost of shares redeemed..... (96,305,251) (148,418,734)
------------ -------------
Class A capital
transactions.............. 4,573,210 55,040,540
------------ -------------
CLASS C
Proceeds from shares
issued.................... 21,176,356 224,964,687
Dividends reinvested........ 20,563 11,448
Cost of shares redeemed..... (98,062,777) (211,110,824)
------------ -------------
Class C capital
transactions.............. (76,865,858) 13,865,311
------------ -------------
Net increase (decrease) from
capital transactions........ $(72,292,648) $ 68,905,851
============ =============
SHARE TRANSACTIONS:
CLASS A
Issued...................... 99,331,704 201,692,061
Reinvested.................. 1,546,757 1,767,213
Redeemed.................... (96,305,251) (148,418,734)
------------ -------------
Change in Class A Shares.... 4,573,210 55,040,540
------------ -------------
CLASS C
Issued...................... 21,176,356 224,964,687
Reinvested.................. 20,563 11,448
Redeemed.................... (98,062,777) (211,110,824)
------------ -------------
Change in Class C Shares.... (76,865,858) 13,865,311
------------ -------------
Net increase (decrease) from
share transactions.......... (72,292,648) 68,905,851
============ =============
</TABLE>
CONTINUED
51
<PAGE>
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
OCTOBER 31, 2000
7. SUBSEQUENT EVENT
On December 1, 2000, the Money Market Fund liquidated its net assets to
shareholders on record for all Class A and Class C shares and ceased
operations.
END OF NOTES TO FINANCIAL STATEMENTS.
52
<PAGE>
[CENTURA FUNDS 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.
12/00
