<PAGE> 1
[SAFECO ADVISOR FUNDS LOGO]
1996
SEMIANNUAL
REPORT
STOCK FUNDS
ADVISOR EQUITY FUND
ADVISOR NORTHWEST FUND
TAXABLE BOND FUNDS
ADVISOR INTERMEDIATE-TERM TREASURY FUND
ADVISOR U.S. GOVERNMENT FUND
ADVISOR GNMA FUND
TAX-EXEMPT BOND FUNDS
ADVISOR MUNICIPAL BOND FUND
ADVISOR INTERMEDIATE-TERM MUNICIPAL BOND FUND
ADVISOR WASHINGTON MUNICIPAL BOND FUND
<PAGE> 2
<TABLE>
TABLE OF CONTENTS
<S> <C>
Equity Fund ...................................................... 2-3
Northwest Fund ................................................... 4-5
Intermediate-Term Treasury Fund .................................. 5
U.S. Government Fund ............................................. 6
GNMA Fund ........................................................ 6
Municipal Bond Funds ............................................. 7-9
Statements of Assets and Liabilities ............................. 10-11
Statements of Operations ......................................... 12-13
Statements of Changes in Net Assets .............................. 14-15
Notes to Financial Statements .................................... 16-22
</TABLE>
<PAGE> 3
[PHOTO OF DAVID F. HILL]
Dear Shareholder: August 5, 1996
This is the final report for the funds of the SAFECO Advisor Series Trust.
We have previously informed you that on October 1, 1996, we will begin offering
the Advisor funds under a new and improved structure.
MARKET COMMENTARY
The U.S. economy was stronger than expected during the first half of 1996,
with Gross Domestic Product (GDP) growing at 3.09%. The strong economy, coupled
with rising employment numbers and concerns about rising wages, led to renewed
inflation fears and higher interest rates. Continued economic strength caused
speculation about a potential Federal Reserve tightening. However, we anticipate
inflation remaining moderate for the year, at around 2.9%, and believe the
inflation scare is likely to turn out to be just that.
The combination of a strong economy, continued productivity gains by
corporate America and rising interest rates resulted in stocks rising and bond
prices falling. The stock market as measured by the S&P 500 Index increased
10.24% in the six months ending June 30, 1996. The bond market as depicted by
the Lehman Brothers Government Corporate Index fell 1.88% for the same period.
We think there is enough strength in the economy, and in turn, corporate
earnings, to support current valuations in the stock market. And fundamentals
are in place for the bond market to return to year-end 1995 levels.
/s/ DAVID F. HILL
David F. Hill
President
===============================================================================1
1996 SEMIANNUAL REPORT
<PAGE> 4
SAFECO ADVISOR EQUITY FUND
PORTFOLIO OF INVESTMENTS
As of June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
SHARES OR MARKET VALUE
PRINCIPAL AMOUNT (000'S)
- ---------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 92.2%
Autos & Auto Parts - 2.4%
5,000 Echlin, Inc.............................. $189
Banking & Finance - 10.1%
5,736 Chase Manhattan Corp..................... 405
1,600 Citicorp................................. 132
3,300 NationsBank Corp......................... 273
Broadcast Media - 4.7%
5,900 *Viacom, Inc. (Class B)................... 229
2,300 Walt Disney Co........................... 145
Chemicals - 2.0%
2,000 Du Pont (EI) De Nemours & Co............. 158
Computer Hardware - 1.6%
1,300 Hewlett-Packard Co....................... 130
Computer Software - 4.1%
1,200 *Microsoft Corp........................... 144
4,700 *Oracle Corp.............................. 185
Computer Systems - 2.0%
3,600 *Seagate Technology, Inc.................. 162
<CAPTION>
SHARES OR MARKET VALUE
PRINCIPAL AMOUNT (000'S)
- ----------------------------------------------------------------------
Drugs & Hospital Supplies - 8.4%
2,400 American Home Products Corp.............. $144
2,500 Schering-Plough Corp..................... 157
4,400 SmithKline Beecham, plc (ADR)............ 239
2,400 Warner-Lambert Co........................ 132
Electrical Equipment & Electronics - 5.9%
2,300 General Electric Co...................... 199
1,900 Intel Corp............................... 140
2,150 Motorola, Inc............................ 135
Financial Services - 5.4%
2,200 Federal Home Loan Mortgage Corp.......... 188
7,200 Federal National Mortgage Association.... 241
Food & Tobacco - 5.6%
4,300 ConAgra, Inc............................. 195
2,400 Philip Morris Cos., Inc.................. 250
Household Products - 5.1%
2,300 Colgate-Palmolive Co..................... 195
2,800 Kimberly-Clark Corp...................... 216
Insurance - 5.8%
4,000 American General Corp.................... 145
1,650 American International Group, Inc........ 163
3,000 ITT Hartford Group, Inc.................. 160
</TABLE>
See Notes to Financial Statements
2
<PAGE> 5
<TABLE>
<CAPTION>
SHARES OR MARKET VALUE
PRINCIPAL AMOUNT (000'S)
- ----------------------------------------------------------------------
<S> <C> <C>
Paper & Forest Products - 1.6%
2,100 Willamette Industries, Inc............... $125
Petroleum & Petroleum Services - 7.8%
2,300 Exxon Corp............................... 200
1,900 Mobil Corp............................... 213
1,400 Royal Dutch Petroleum Co. (ADR).......... 215
Pollution Control - 2.2%
6,000 Browning-Ferris Industries, Inc.......... 174
Retail - 5.7%
3,200 Albertson's, Inc......................... 132
3,700 May Department Stores Co................. 162
6,500 Wal-Mart Stores, Inc..................... 165
Telecommunications - 2.7%
3,550 AT&T Corp................................ 220
Transportation - 1.7%
2,000 Union Pacific Corp....................... 140
Utilities-Electric Distribution - 2.4%
7,900 Houston Industries, Inc.................. 195
<CAPTION>
SHARES OR MARKET VALUE
PRINCIPAL AMOUNT (000'S)
- --------------------------------------------------------------------
<S> <C>
Utilities-Telephone - 5.0%
5,950 Century Telephone Enterprises............ $ 190
4,750 GTE Corp................................. 213
-----
TOTAL COMMON STOCKS..................................... 7,395
=====
TEMPORARY INVESTMENTS - 7.7%
Investment Companies:
402,335 Short-Term Investments Co.
(Prime Portfolio)........................ 402
212,240 Short-Term Investments Co.
(Treasury Portfolio)..................... 212
=====
TOTAL TEMPORARY INVESTMENTS............................. 614
-----
TOTAL INVESTMENTS - 99.9%............................... 8,009
Other Assets, less Liabilities......................... 9
-----
NET ASSETS.............................................. $8,018
======
</TABLE>
* Non-income producing security.
See Notes to Financial Statements.
3
<PAGE> 6
SAFECO ADVISOR NORTHWEST FUND
PORTFOLIO OF INVESTMENTS
As of June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
SHARES OR MARKET VALUE
PRINCIPAL AMOUNT (000'S)
- ---------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 96.7%
Aerospace - 5.5%
3,800 Boeing Co................................ $331
Apparel Manufacturing - 2.4%
1,400 NIKE, Inc................................ 144
Autos - 3.0%
14,500 *Monaco Coach Corp........................ 181
Banking & Finance - 12.6%
3,380 *Cascade Bancorp.......................... 69
4,675 InterWest Bancorp., Inc.................. 112
9,294 Northrim Bank............................ 87
10,500 US Bancorp............................... 379
5,798 West Coast Bancorp, Inc.................. 110
Beverages - 3.5%
12,000 *Hart Brewing, Inc........................ 123
3,700 *Redhook Ale Brewery, Inc................. 86
Building Materials - 2.8%
4,100 *BMC West Corp............................ 70
5,400 TJ International, Inc.................... 97
Chemicals - 1.0%
16,000 *Consep, Inc.............................. 62
Commercial Services - 1.6%
5,300 *Barrett Business Services, Inc........... 99
Computer Software - 6.5%
4,000 *Analogy, Inc............................. 29
3,700 *Mentor Graphics Corp..................... 60
2,500 *Microsoft Corp........................... 300
1,300 *ThrustMaster, Inc........................ 6
Drugs & Hospital Supplies - 1.0%
4,000 *Epitope, Inc............................. 63
<CAPTION>
SHARES OR MARKET VALUE
PRINCIPAL AMOUNT (000'S)
- ----------------------------------------------------------------------
<S> <C>
Electrical Equipment & Electronics - 6.4%
12,500 *FLIR Systems, Inc........................ $153
5,900 *Lattice Semiconductor Corp............... 142
1,700 *Merix Corp............................... 34
2,800 *Praegitzer Industries, Inc............... 30
2,100 *Semitool, Inc............................ 27
Food - 2.4%
19,000 *Wholesome & Hearty Foods, Inc............ 147
Health Care - 5.3%
4,000 *Assisted Living Concepts, Inc............ 82
13,400 *Emeritus Corp............................ 236
Household Products - 2.1%
5,750 *Paragon Trade Brands, Inc................ 124
Machinery Diversified - 1.3%
10,100 *Flow International Corp.................. 81
Metal Miscellaneous - 5.6%
3,000 Oregon Steel Mills, Inc.................. 41
11,100 Schnitzer Steel Industries, Inc.......... 297
Paper & Forest Products - 3.4%
12,100 Longview Fibre Co........................ 206
Pollution Control - 0.5%
10,600 *R-B Rubber Products, Inc................. 27
Retail - Grocers - 5.0%
4,800 Albertson's, Inc......................... 199
9,000 *Carr-Gottstein Foods Co.................. 38
2,693 *Quality Food Centers, Inc................ 69
Retail - Other - 8.6%
8,200 *Hollywood Entertainment Corp............. 127
3,300 Nordstrom, Inc........................... 147
11,400 *Price/Costco, Inc........................ 247
</TABLE>
See Notes to Financial Statements
4
<PAGE> 7
<TABLE>
<CAPTION>
SHARES OR MARKET VALUE
PRINCIPAL AMOUNT (000'S)
- ---------------------------------------------------------------------
<S> <C>
Retail - Specialty - 4.0%
13,600 *Egghead, Inc............................. $ 151
4,200 *Garden Botanika, Inc..................... 92
Savings & Loans/Savings Banks - 9.2%
3,300 Security Bancorp......................... 70
14,500 *Sterling Financial Corp.................. 214
9,100 Washington Mutual Savings Bank........... 272
Transportation - 3.0%
2,100 Airborne Freight Corp.................... 55
22,500 *Arrow Transportation Co.................. 25
2,500 Expeditors International of
Washington, Inc.......................... 78
1,900 Greenbrier Companies, Inc................ 26
------
TOTAL COMMON STOCKS..................................... 5,845
------
TEMPORARY INVESTMENTS - 3.2%
Investment Companies:
$193,371 Short-Term Investments Co.
(Prime Portfolio)........................ 193
------
TOTAL TEMPORARY INVESTMENTS............................. 193
------
TOTAL INVESTMENTS - 99.9%............................... 6,038
Other Assets, less Liabilities........................ 7
------
NET ASSETS ............................................. $6,045
======
</TABLE>
* Non-income producing security.
SAFECO ADVISOR
INTERMEDIATE-TERM
TREASURY FUND
PORTFOLIO OF INVESTMENTS
As of June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
(000'S) (000'S)
- ---------------------------------------------------------------------
<S> <C>
U.S. GOVERNMENT SECURITIES - 98.5%
U.S. Treasury Notes - 66.6%
$ 325 7.50%, due 11/15/01...................... $ 339
1,970 6.50%, due 9/30/96....................... 1,976
1,280 6.25%, due 2/15/03....................... 1,257
140 6.00%, due 10/15/99...................... 139
U.S. Treasury Principal Strips - 31.9%
2,160 0.00%, due 8/15/99....................... 1,774
------
TOTAL U.S. GOVERNMENT SECURITIES........................ 5,485
------
TEMPORARY INVESTMENTS - 0.8%
Investment Companies:
43 Short -Term Investments Co.
(Prime Portfolio)........................ 43
------
TOTAL TEMPORARY INVESTMENTS............................. 43
------
TOTAL INVESTMENTS - 99.3%............................... 5,528
Other Assets, less Liabilities......................... 39
------
NET ASSETS ............................................. $5,567
======
</TABLE>
See Notes to Financial Statements
5
<PAGE> 8
SAFECO ADVISOR
U.S. GOVERNMENT FUND
PORTFOLIO OF INVESTMENTS
As of June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
(000'S) (000'S)
- ---------------------------------------------------------------------
<S> <C>
U.S. GOVERNMENT AND AGENCY
AGENCY SECURITIES - 97.9%
U.S. Treasury Notes - 87.6%
$1,970 6.50%, due 9/30/96....................... $1,976
370 6.25%, due 2/15/03....................... 363
2,150 6.00%, due 10/15/99...................... 2,130
U.S. Treasury Principal Strips - 10.3%
640 0.00%, due 8/15/99....................... 526
------
TOTAL U.S. GOVERNMENT AND
AGENCY SECURITIES....................................... 4,995
------
TEMPORARY INVESTMENTS - 1.3%
Investment Companies:
65 Short-Term Investments Co.
(Prime Portfolio)........................ 65
------
TOTAL TEMPORARY INVESTMENTS............................. 65
------
TOTAL INVESTMENTS - 99.2%............................... 5,060
Other Assets, less Liabilities........................ 40
------
NET ASSETS $5,100
....................................................... ======
</TABLE>
See Notes to Financial Statements
SAFECO ADVISOR
GNMA FUND
PORTFOLIO OF INVESTMENTS
As of June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
(000'S) (000'S)
- ----------------------------------------------------------------------
<S> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES - 93.6%
Government National Mortgage
Association (GNMA) - 89.6%
$ 759 9.50%, due 8/20/19....................... $ 812
345 8.00%, due 4/15/17 - 10/15/22............ 350
1,799 7.50%, due 5/15/22 - 2/15/25............. 1,783
1,520 7.00%, due 8/15/23 - 10/15/23............ 1,463
329 6.50%, due 11/15/23...................... 308
U.S. Treasury Notes - 4.0%
225 5.75%, due 8/15/03...................... 214
------
TOTAL U.S. GOVERNMENT AND
AGENCY SECURITIES....................................... 4,930
------
TEMPORARY INVESTMENTS - 6.4%
Investment Companies:...................................
335 Short-Term Investments Co.
(Prime Portfolio)........................ 335
------
TOTAL TEMPORARY INVESTMENTS............................. 335
------
TOTAL INVESTMENTS - 100.0%.............................. 5,265
Other Assets, less Liabilities......................... 0
------
NET ASSETS ............................................. $5,265
======
</TABLE>
See Notes to Financial Statements
6
<PAGE> 9
SAFECO ADVISOR MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
As of June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
(000'S) (000'S)
- ----------------------------------------------------------------------
<S> <C>
BONDS - 96.6%
Arizona - 4.7%
$300 Phoenix Civic Improvement Corp.
Wastewater System Lease Revenue
5.00%, due 7/01/18 ...................... $267
California - 16.6%
250 East Bay Regional Park District
California General Obligation
5.75%, due 9/01/16....................... 243
300 Los Angeles Wastewater System Revenue
4.70%, due 11/01/19 [FGIC]*.............. 251
245 Pleasanton Joint Powers Financing Authority
Reassessment Revenue
6.20%, due 9/02/17....................... 243
250 Sacramento County Sanitation District
Finance Authority
4.75%, due 12/01/23...................... 206
Colorado - 4.7%
285 Denver School District #1 General Obligation
5.125%, due 12/01/12..................... 267
Delaware - 4.4%
300 .Delaware River and Bay Authority Revenue
4.75%, due 1/01/24 [MBIA]................ 252
Florida - 8.4%
250 Orange County Sales Tax Revenue
5.375%, due 1/01/24...................... 230
250 Orlando and Orange County
Expressway Authority
Junior Lien Revenue
5.95%, due 7/01/23....................... 247
Illinois - 4.6%.........................................
250 Illinois Civic Center Revenue
6.25%, due 12/15/20 [AMBAC].............. 261
Massachusetts - 4.6%
275 Massachusetts Water Resources Authority
General Revenue
5.50%, due 3/01/17....................... 259
Michigan - 3.8%
250 Detroit Water Supply System Revenue
4.75%, due 7/01/19 [FGIC]................ 213
Nebraska - 4.7%
300 Nebraska Public Power District
Power Supply System Revenue
5.00%, due 1/01/17....................... 265
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
(000'S) (000'S)
- ----------------------------------------------------------------------
<S> <C>
New York - 4.2%
$250 New York State Thruway Authority
General Revenue
5.50%, due 1/01/23 [FGIC]................ $ 237
Pennsylvania - 3.8%
250 Pittsburgh Water and Sewer
Authority Revenue
4.75%, due 9/01/16 [FGIC]................ 213
Texas - 9.9%
325 Colorado River Municipal Water District
Water System Revenue
5.15%, due 1/01/21 [AMBAC]............... 296
300 San Antonio Electric and
Gas Systems Revenue
5.00%, due 2/01/16....................... 268
Washington - 22.2%
250 Everett School District #2 Snohomish County
Unlimited Tax General Obligation
6.20%, due 12/01/12 [MBIA].............. 258
250 King County Housing Authority
Pooled Housing Refunding Revenue
6.80%, due 3/01/26....................... 259
300 Lewis County Public Utility District #1
Cowlitz Falls Hydro Electric Project Revenue
5.50%, due 10/01/22...................... 278
250 Seattle Municipal Light and Power Revenue
5.375%, due 11/01/18..................... 231
250 Washington Health Care Facilitites Authority
Revenue (Empire Health Service, Spokane)
5.625%, due 11/01/19 [MBIA].............. 235
------
TOTAL BONDS.............................................. 5,479
------
TEMPORARY INVESTMENTS - 2.1%
Investment Companies:
118 Aim Tax-Exempt
Money Market Fund, Inc................... 118
------
TOTAL TEMPORARY INVESTMENTS............................. 118
------
TOTAL INVESTMENTS - 98.7%............................... 5,597
Other Assets, less Liabilities........................ 72
------
NET ASSETS ............................................. $5,669
======
</TABLE>
* The provider of the guarantee of timely payment of both principal and interest
is identified in the brackets at the end of each bond description. The
guarantors applicable to this portfolio and the percentage of the portfolios
they guarantee at the period end are as follows: FGIC -- Financial Guaranty
Insurance Corp. (16.2% of portfolio), MBIA -- Municipal Bond Investors
Assurance Corp. (13.0% of portfolio), AMBAC -- AMBAC Indemnity Corp. (9.8% of
portfolio)
See Notes to Financial Statements
7
<PAGE> 10
SAFECO ADVISOR INTERMEDIATE-TERM MUNICIPAL
BOND FUND PORTFOLIO OF INVESTMENTS
As of June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
(000'S) (000'S)
- ----------------------------------------------------------------------
<S> <C>
BONDS - 93.6%
California - 4.9%
$250 California Housing Finance Agency
Housing Revenue
5.75%, due 8/01/03 [MBIA]*.............. $254
District of Columbia - 4.4%
220 District of Columbia University Revenue
(Georgetown University Issue)
6.30%, due 4/01/03 ...................... 233
Illinois - 19.7%
240 Chicago General Obligation
6.20%, due 1/01/04 [AMBAC]............... 257
250 Cook County Community Consolidated
School District #21 (Wheeling)
General Obligation Limited Tax
5.80%, due 12/01/04 [AMBAC].............. 262
240 Metropolitan Pier and Exposition Authority
5.90%, due 6/15/03 [MBIA]................ 252
250 Will County School District #161 (Frankfort)
5.75%, due 1/01/05 [FGIC]................ 259
Michigan - 5.2%
270 Detroit Sewage Disposal System Revenue
5.10%, due 7/01/04 [FGIC]................ 270
Minnesota - 2.9%
150 Minnesota Housing Development Authority
6.00%, due 6/01/03....................... 152
Missouri - 5.0%
250 New Madrid Power Plant Revenue
5.65%, due 6/01/03 [AMBAC]............... 260
Nevada - 4.8%
235 Clark County Limited Tax
General Obligation
(Flood Control)
6.30%, due 11/01/04 [AMBAC].............. 250
New Jersey - 4.8%
240 New Jersey Turnpike Authority Revenue
6.00%, due 1/01/05....................... 249
North Carolina - 4.9%
250 North Carolina Municipal Power Agency #1
Catawba Electric Revenue
5.90%, due 1/01/03....................... 257
South Carolina - 4.9%
245 Georgetown County, Pollution
Control Revenue
(International Paper Company Project)
6.25%, due 6/15/05....................... 257
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
(000'S) (000'S)
- ----------------------------------------------------------------------
<S> <C>
Texas - 3.7%
$190 Texas General Obligation
Veterans' Housing Assistance Program
5.90%, due 6/01/04....................... $ 192
Utah - 4.5%
240 Utah State Board of Regents
Student Loan Revenue
5.45%, due 5/01/05....................... 238
Washington - 19.5%
250 Benton School District #17 (Kennewick)
General Obligation
5.70%, due 12/01/03 [AMBAC].............. 261
250 Conservation and Renewable Energy System
Conservation Project Revenue
5.85%, due 10/01/05...................... 257
240 SeaTac Local Option Transportation
Tax Revenue
5.75%, due 12/01/03 [MBIA]............... 251
270 Washington Public Power Supply System
Nuclear Project #3 Revenue
4.90%, due 7/01/04....................... 253
Wisconsin - 4.4%
200 Wisconsin Public Power, Inc.
System Power Supply System Revenue
7.50%, due 7/01/04....................... 231
------
TOTAL BONDS ........................................... 4,895
------
TEMPORARY INVESTMENTS - 5.4%
Investment Companies:
263 Aim Tax-Exempt
Money Market Fund, Inc................... 263
22 Nuveen Tax-Exempt
Money Market Fund, Inc................... 22
------
TOTAL TEMPORARY INVESTMENTS............................. 285
------
TOTAL INVESTMENTS - 99.0%............................... 5,180
Other Assets, less Liabilities........................ 50
------
NET ASSETS ............................................. $5,230
======
</TABLE>
* The provider of the guarantee of timely payment of both principal and interest
is identified in the brackets at the end of each bond description. The
guarantors applicable to this portfolio and the percentage of the portfolios
they guarantee at the period end are as follows: AMBAC -- AMBAC Indemnity
Corp. (24.7% of portfolio), MBIA -- Municipal Bond Investors Assurance Corp.
(14.5% of portfolio), FGIC -- Financial Guaranty Insurance Corp. (10.2% of
portfolio)
See Notes to Financial Statements
8
<PAGE> 11
SAFECO ADVISOR WASHINGTON MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
As of June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
(000'S) (000'S)
- ----------------------------------------------------------------------
<S> <C>
BONDS - 98.3%
$250 Grant County Public Utility District #2
Wanapum Hydroelectric Revenue
6.375%, due 1/01/23...................... $ 252
200 King County Housing Authority
Pooled Housing Refunding Revenue
6.80%, due 3/01/26....................... 207
320 King County Limited Tax General Obligation
4.50%, due 1/01/24....................... 262
250 Klickitat County Public Utility District #1
Electric Revenue
5.75%, due 10/01/27 [FGIC]*.............. 245
250 Municipality of Metropolitan
Seattle Sewer Revenue
6.30%, due 1/01/33 [MBIA]................ 255
260 Port Angeles Water and
Wastewater Utility Revenue
6.75%, due 11/01/24 [MBIA]............... 280
175 Port of Seattle Revenue
6.25%, due 11/01/17...................... 177
285 Renton Water and Sewer
Improvement Revenue
5.375%, due 4/01/13...................... 272
250 Richland Water and Sewer Revenue
6.25%, due 4/01/12 [MBIA]................ 256
250 Seattle Drainage and Wastewater Utility
Improvement Revenue
5.75%, due 12/01/22...................... 237
250 Seattle Municipal Light and Power Revenue
5.375%, due 11/01/18..................... 231
250 Seattle Water System Revenue
5.50%, due 6/01/18....................... 235
285 Snohomish County Public Utility District #1
Generation System Revenue
5.50%, due 1/01/20 [FGIC]................ 268
250 Spokane Public Facility District Revenue
(Arena Project)
6.50%, due 1/01/18 [AMBAC]............... 261
200 University of Washington Housing and
Dining System Revenue
5.00%, due 12/01/21 [MBIA]............... 176
250 Walla Walla Water and Sewer Revenue
6.20%, due 8/01/12 [MBIA]................ 257
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
(000'S) (000'S)
- ----------------------------------------------------------------------
<S> <C>
$250 Washington Certificates of Participation
(State Office Building Project)
6.00%, due 4/01/12 [MBIA]................ $ 253
250 Washington Health Care Facilities Authority
Revenue (Empire Health Service Spokane)
5.625%, due 11/01/19 [MBIA].............. 235
250 Washington Health Care Facilities Authority
Revenue (Group Health)
6.25%, due 12/01/21 [MBIA]............... 252
290 Washington Health Care Facilities Authority
Revenue (Harrison Memorial
Hospital, Bremerton)
5.40%, due 8/15/23 [AMBAC]............... 265
250 Washington Health Care Facilities Authority
Revenue (Swedish Hospital Medical Center)
6.30%, due 11/15/22 [AMBAC].............. 254
250 Washington Public Power Supply System
Nuclear Project #1 Revenue
5.70%, due 7/01/17 [MBIA]................ 239
250 Washington State Housing
Finance Commission
Revenue (Horizon House Project)
6.125%, due 7/01/27 [MBIA]............... 250
------
TOTAL BONDS ............................................ 5,619
------
TEMPORARY INVESTMENTS - 0.5%
Investment Companies:
30 Aim Tax-Exempt
Money Market Fund, Inc................... 30
------
TOTAL TEMPORARY INVESTMENTS............................. 30
------
TOTAL INVESTMENTS - 98.8%............................... 5,649
Other Assets, less Liabilities........................ 70
------
NET ASSETS.............................................. $5,719
======
</TABLE>
* The provider of the guarantee of timely payment of both principal and interest
is identified in the brackets at the end of each bond description. The
guarantors applicable to this portfolio and the percentage of the portfolios
they guarantee at the period end are as follows: MBIA -- Municipal Bond
Investors Assurance Corp. (43.0% of portfolio), AMBAC -- AMBAC Indemnity Corp.
(13.7% of portfolio), FGIC -- Financial Guaranty Insurance Corp. (9.0% of
portfolio)
See Notes to Financial Statements
9
<PAGE> 12
STATEMENTS OF ASSETS & LIABILITIES
As of June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
SAFECO ADVISOR SAFECO ADVISOR SAFECO ADVISOR
EQUITY NORTHWEST INTERMEDIATE-TERM
FUND FUND TREASURY FUND
- -----------------------------------------------------------------------------------------------------------------
-- (IN THOUSANDS, EXCEPT PER-SHARE AMOUNTS) --
<S> <C> <C> <C>
Assets
Investments, at Value
Common Stocks (Identified Cost $6,314 and
$5,078, respectively) $7,395 $5,845
U.S. Government and Agency Obligations
(Identified Cost $5,519, $5,047 and
$4,844, respectively) $5,485
Municipal Bonds (Identified Cost $5,005,
$4,693 and $5,255, respectively)
Short-Term Investments 614 193 43
------ ------ ------
Total Investments 8,009 6,038 5,528
Receivables
Dividends and Interest 14 6 66
Trust Shares Sold -- 15 --
Investment Securities Sold 19 -- --
Deferred Organization Expense 20 20 20
------ ------ ------
Total Assets 8,062 6,079 5,614
------ ------ ------
Liabilities
Payables
Dividends 8 -- 15
Organization Expense 20 20 20
Investment Advisory Fees 4 3 2
Trust Shares Redeemed -- 1 --
Other 12 10 10
------ ------ ------
Total Liabilities 44 34 47
------ ------ ------
Net Assets $8,018 $6,045 $5,567
====== ====== ======
Class A:
Net Assets $3,262 $2,088 $2,001
------ ------ ------
Shares Outstanding 260 181 195
------ ------ ------
Net Asset Value and Redemption Price Per Share $12.55 $11.52 $10.28
====== ====== ======
Maximum Offering Price Per Share (Net Asset
Value Plus Sales Charge of 4.75%) $13.18 $12.09 $10.79
====== ====== ======
Class B:
Net Assets $2,194 $1,976 $1,713
------ ------ ------
Shares Outstanding 175 174 167
------ ------ ------
Net Asset Value and Offering Price Per Share $12.54 $11.37 $10.28
====== ====== ======
Class C:
Net Assets $2,562 $1,981 $1,853
------ ------ ------
Shares Outstanding 204 174 180
------ ------ ------
Net Asset Value, Offering Price and
Redemption Price Per Share $12.53 $11.37 $10.28
====== ====== ======
</TABLE>
See Notes to Financial Statements
10
<PAGE> 13
<TABLE>
<CAPTION>
SAFECO ADVISOR SAFECO ADVISOR
SAFECO ADVISOR SAFECO ADVISOR SAFECO ADVISOR INTERMEDIATE-TERM WASHINGTON
U.S. GOVERNMENT GNMA MUNICIPAL MUNICIPAL BOND MUNICIPAL BOND
FUND FUND BOND FUND FUND
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$4,995 $4,930
$5,479 $4,895 $5,619
65 335 118 285 30
5,060 5,265 5,597 5,180 5,649
- ------ ------ ------ ------ ------
67 34 102 74 100
-- -- -- 2 --
-- -- -- -- --
20 20 20 20 20
- ------ ------ ------ ------ ------
5,147 5,319 5,719 5,276 5,769
- ------ ------ ------ ------ ------
15 22 17 15 18
20 20 20 20 20
2 2 3 2 2
-- -- -- -- --
10 10 10 9 10
- ------ ------ ------ ------ ------
47 54 50 46 50
- ------ ------ ------ ------ ------
$5,100 $5,265 $5,669 $5,230 $5,719
====== ====== ====== ====== ======
$1,732 $1,818 $1,884 $1,729 $1,974
- ------ ------ ------ ------ ------
172 178 171 166 184
- ------ ------ ------ ------ ------
$10.07 $10.22 $11.05 $10.37 $10.72
====== ====== ====== ====== ======
$10.57 $10.73 $11.60 $10.89 $11.25
====== ====== ====== ====== ======
$1,678 $1,703 $1,872 $1,730 $1,892
- ------ ------ ------ ------ ------
167 166 169 167 177
- ------ ------ ------ ------ ------
$10.07 $10.22 $11.05 $10.37 $10.71
====== ====== ====== ====== ======
$1,690 $1,744 $1,913 $1,771 $1,853
- ------ ------ ------ ------ ------
167 171 173 171 173
- ------ ------ ------ ------ ------
$10.07 $10.22 $11.05 $10.37 $10.72
====== ====== ====== ====== ======
</TABLE>
11
<PAGE> 14
STATEMENTS OF OPERATIONS
For the Six-Month Period Ended June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
SAFECO ADVISOR SAFECO ADVISOR SAFECO ADVISOR
EQUITY NORTHWEST INTERMEDIATE-TERM
FUND FUND TREASURY FUND
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
-- (IN THOUSANDS) --
Investment Income
Dividends $ 74 $ 25 --
Interest 11 6 $ 160
----- ----- -----
Total Investment Income 85 31 160
----- ----- -----
Expenses
Investment Advisory Fees 26 21 16
Shareholder Service Fees 9 7 7
Distribution Fees - Class B 8 7 7
- Class C 9 7 7
Registration and Filing Fees 12 11 12
Legal and Auditing Fees 7 7 7
Amortization of Organization Expenses 3 3 3
Custodian Fees 7 5 2
Trustees' Fees 2 2 2
----- ----- -----
Total Expenses 83 70 63
Expenses Reimbursed by Advisor (12) (11) (12)
----- ----- -----
Net Expenses 71 59 51
----- ----- -----
Net Investment Income (Loss) 14 (28) 109
----- ----- -----
Net Realized and Unrealized Gain (Loss) on Investments
Net Realized Gain (Loss) on Investments 330 7 168
Net Change in Unrealized Appreciation 397 606 (443)
----- ----- -----
Net Gain (Loss) on Investments 727 613 (275)
----- ----- -----
Net Change in Net Assets Resulting from Operations $ 741 $ 585 $(166)
===== ===== =====
</TABLE>
See Notes to Financial Statements
12
<PAGE> 15
<TABLE>
<CAPTION>
SAFECO ADVISOR SAFECO ADVISOR
SAFECO ADVISOR SAFECO ADVISOR SAFECO ADVISOR INTERMEDIATE-TERM WASHINGTON
U.S. GOVERNMENT GNMA MUNICIPAL MUNICIPAL BOND MUNICIPAL BOND
FUND FUND BOND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
-- -- -- -- --
$ 145 $ 195 $ 164 $ 144 $ 171
- ----- ----- ----- ----- -----
145 195 164 144 171
- ----- ----- ----- ----- -----
15 15 17 15 17
7 7 7 7 7
6 6 7 6 7
6 7 7 7 7
11 11 11 11 11
7 7 7 7 7
3 3 3 3 3
2 3 2 2 2
2 2 2 2 2
- ----- ----- ----- ----- -----
59 61 63 60 63
(11) (11) (11) (11) (11)
- ----- ----- ----- ----- -----
48 50 52 49 52
- ----- ----- ----- ----- -----
97 145 112 95 119
- ----- ----- ----- ----- -----
87 40 72 6 --
(333) (246) (440) (179) (256)
- ----- ----- ----- ----- -----
(246) (206) (368) (173) (256)
- ----- ----- ----- ----- -----
$(149) $ (61) $(256) $ (78) $(137)
===== ===== ===== ===== =====
</TABLE>
13
<PAGE> 16
STATEMENTS OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
SAFECO ADVISOR SAFECO ADVISOR
EQUITY NORTHWEST
FUND FUND
- ----------------------------------------------------------------------------------------------------------------
-(IN THOUSANDS, EXCEPT PER-SHARE AMOUNTS)-
1996(1) 1995(2) 1996(1) 1995(2)
----------------------- -------------------------
<S> <C> <C> <C> <C>
Operations
Net Investment Income (Loss) $ 14 $ 57 $ (28) $ (49)
Net Realized Gain (Loss) on
Investments 330 678 7 145
Net Change in Unrealized
Appreciation (Depreciation) 397 802 606 283
----------------------- ------------------------
Net Change in Net Assets
Resulting from Operations 741 1,537 585 379
----------------------- ------------------------
Distributions to Shareholders from
Net Investment Income - Class A (12) (30) -- --
- Class B (1) (13) -- --
- Class C (1) (14) -- --
Net Realized Gain on Investments - Class A -- (242) -- (33)
- Class B -- (207) -- (31)
- Class C -- (228) -- (32)
----------------------- ------------------------
Total (14) (734) 0 (96)
----------------------- ------------------------
Net Trust Share Transactions
Class A 613 454 31 121
Class B 32 61 47 28
Class C 158 278 47 30
----------------------- ------------------------
Total 803 793 125 179
----------------------- ------------------------
Total Change in Net Assets 1,530 1,596 710 462
Net Assets at Beginning of Period 6,488 4,892 5,335 4,873
----------------------- ------------------------
Net Assets at End of Period $ 8,018 $ 6,488 $ 6,045 $ 5,335
======================= ========================
OTHER INFORMATION
Increase in Fund Shares and Amounts
Shares
Sales 70 65 13 17
Reinvestments -- 7 -- 1
Redemptions (3) (1) (1) (1)
----------------------- ------------------------
Net Change 67 71 12 17
======================= ========================
Amounts
Sales $ 830 $ 731 $ 133 $ 180
Reinvestments 5 78 -- 3
Redemptions (32) (16) (8) (4)
----------------------- ------------------------
Net Change $ 803 $ 793 $ 125 $ 179
======================= ========================
</TABLE>
<TABLE>
<CAPTION>
SAFECO ADVISOR
INTERMEDIATE-TERM
TREASURY FUND
- -------------------------------------------------------------------------------
<S> <C>
1996(1) 1995(2)
--------- --------
Operations
Net Investment Income (Loss) $ 109 $ 244
Net Realized Gain (Loss) on
Investments 168 86
Net Change in Unrealized
Appreciation (Depreciation) (443) 443
Net Change in Net Assets ------- -------
Resulting from Operations (166) 773
------- -------
Distributions to Shareholders from
Net Investment Income - Class A (43) (93)
- Class B (32) (75)
- Class C (34) (76)
Net Realized Gain on Investments - Class A -- (29)
- Class B -- (27)
- Class C -- (28)
------- -------
Total (109) (328)
------- -------
Net Trust Share Transactions
Class A 151 139
Class B -- --
Class C 99 34
------- -------
Total 250 173
------- -------
Total Change in Net Assets (25) 618
Net Assets at Beginning of Period 5,592 4,974
------- -------
Net Assets at End of Period $ 5,567 $ 5,592
======= =======
OTHER INFORMATION
Increase in Fund Shares and Amounts
Shares
Sales 26 23
Reinvestments 1 1
Redemptions (3) (7)
------- -------
Net Change 24 17
======= =======
Amounts
Sales $ 272 $ 234
Reinvestments 10 7
Redemptions (32) (68)
------- -------
Net Change $ 250 $ 173
======= =======
</TABLE>
(1) For the six-month period ended June 30, 1996.
(2) For the year ended December 31, 1995.
See Notes to Financial Statements
14
<PAGE> 17
<TABLE>
<CAPTION>
SAFECO ADVISOR SAFECO ADVISOR
SAFECO ADVISOR SAFECO ADVISOR SAFECO ADVISOR INTERMEDIATE-TERM WASHINGTON
U.S. GOVERNMENT GNMA MUNICIPAL MUNICIPAL BOND MUNICIPAL BOND
FUND FUND BOND FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------
1996(1) 1995(2) 1996(1) 1995(2) 1996(1) 1995(2) 1996(1) 1995(2) 1996(1) 1995(2)
- -------------------- ------------------- ------------------ -------------------- -------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 97 $ 227 $ 145 $ 298 $ 112 $ 224 $ 95 $ 192 $ 119 $ 233
87 191 40 (16) 72 8 6 -- -- 32
(333) 285 (246) 434 (440) 938 (179) 458 (256) 689
- ------------------- ------------------- ------------------- ------------------- -------------------
(149) 703 (61) 716 (256) 1,170 (78) 650 (137) 954
- ------------------- ------------------- ------------------- ------------------- -------------------
(37) (84) (54) (110) (42) (84) (36) (72) (46) (86)
(30) (71) (45) (94) (35) (70) (29) (60) (37) (74)
(30) (71) (46) (94) (35) (70) (30) (60) (36) (73)
-- (63) -- -- -- -- -- -- -- (3)
-- (63) -- -- -- -- -- -- -- (4)
-- (63) -- -- -- -- -- -- -- (3)
- ------------------- ------------------- ------------------- ------------------- -------------------
(97) (415) (145) (298) (112) (224) (95) (192) (119) (243)
- ------------------- ------------------- ------------------- ------------------- -------------------
53 -- 50 63 41 -- -- -- 152 41
-- -- -- -- 7 23 2 -- 7 64
12 -- 31 11 59 12 5 39 1 2
- ------------------- ------------------- ------------------- ------------------- -------------------
65 -- 81 74 107 35 7 39 160 107
- ------------------- ------------------- ------------------- ------------------- -------------------
(181) 288 (125) 492 (261) 981 (166) 497 (96) 818
5,281 4,993 5,390 4,898 5,930 4,949 5,396 4,899 5,815 4,997
- ------------------- ------------------- ------------------- ------------------- -------------------
$ 5,100 $ 5,281 $ 5,265 $ 5,390 $ 5,669 $ 5,930 $ 5,230 $ 5,396 $ 5,719 $ 5,815
=================== =================== =================== =================== ===================
6 -- 7 7 9 3 1 4 14 11
-- -- 1 -- 1 -- -- -- 1 1
-- -- -- -- -- -- -- -- -- (1)
- ------------------- ------------------- ------------------- ------------------- -------------------
6 -- 8 7 10 3 1 4 15 11
- ------------------- ------------------- ------------------- ------------------- -------------------
$ 65 $ -- $ 77 $ 70 $ 105 $ 35 $ 7 $ 39 $ 153 $ 114
-- -- 4 4 2 -- -- -- 7 8
-- -- -- -- -- -- -- -- -- (15)
- ------------------- ------------------- ------------------- ------------------- -------------------
$ 65 $ -- $ 81 $ 74 $ 107 $ 35 $ 7 $ 39 $ 160 $ 107
=================== =================== =================== =================== ===================
</TABLE>
15
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. Significant Accounting Policies
The SAFECO Advisor Series Trust ("Trust") is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Trust consists of the SAFECO Advisor Equity
Fund ("Advisor Equity"), SAFECO Advisor Northwest Fund ("Advisor Northwest"),
SAFECO Advisor Intermediate-Term Treasury Fund ("Advisor Intermediate
Treasury"), SAFECO Advisor U.S. Government Fund ("Advisor U.S. Government"),
SAFECO Advisor GNMA Fund ("Advisor GNMA"), SAFECO Advisor Municipal Bond Fund
("Advisor Municipal"), SAFECO Advisor Intermediate-Term Municipal Bond Fund
("Advisor Intermediate Municipal"), and SAFECO Advisor Washington Municipal Bond
Fund ("Advisor Washington") (together "the Advisor Funds," or "the Funds"). Each
Fund issues three classes of stock. Each class represents an interest in the
same assets of a fund and the classes are identical except for differences in
their sales charge structure and ongoing distribution charges. Class B shares
automatically convert to Class A shares approximately eight years after initial
issuance. All classes of shares have equal rights as to earnings, assets and
voting privileges, except that each class bears different distribution charges
and has exclusive voting rights with respect to its distribution plan. The
following is a summary of significant accounting policies consistently followed
by the Trust in the preparation of its financial statements which permit
management to make certain estimates and assumptions as of the date of the
financial statements. The policies are in conformity with generally accepted
accounting principles.
SECURITY VALUATION. Investments in equity securities are valued at the
last-reported sales price, unless there are no transactions, in which case they
are valued at the last-reported bid price. Investments in bonds are stated on
the basis of valuations provided by a pricing service, which uses information
with respect to transactions in bonds, quotations from bond dealers, market
transactions in comparable securities and various relationships between
securities in determining value. Short-term investments purchased at par are
valued at cost. All other short-term investments are valued at amortized cost.
SECURITY TRANSACTIONS. Security transactions are recorded on the trade
date. The cost of the portfolios is the same for financial statement and Federal
income tax purposes. Realized gains and losses from security transactions are
determined using the identified cost basis.
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS. Securities purchased on a
when-issued or delayed basis may be settled a month or more after the trade
date. The securities purchased are carried in the portfolio at market and are
subject to market fluctuation during this period. These securities begin earning
interest on the settlement date. As commitments to purchase when-issued
securities become fixed, the Fund establishes a segregated asset account equal
to the total obligation.
INCOME RECOGNITION. Dividend income less foreign taxes withheld (if any)
is recorded on the ex-dividend date. Interest is accrued on bonds and short-term
investments daily. Bond premiums and original issue discounts and market
discounts on taxable bonds are amortized to either call or maturity dates.
Market discount on municipal bonds purchased after April 30, 1993, if any, is
recorded as taxable income at disposition.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. For the Advisor Equity and
Advisor Northwest Funds, net investment income is declared as a dividend to
shareholders as of the last business day (ex-dividend date) of March, June,
September and December. For all other Advisor Funds, net investment income is
declared as a dividend to shareholders of record as of the close of each
business day and payment is made as of the last business day of each month. For
all Advisor Funds, net gains realized from security transactions, if any, are
normally distributed to shareholders at the end of December.
FEDERAL INCOME AND EXCISE TAXES. The Funds intend to continue to comply
with the requirements of the Internal Revenue Code applicable to regulated
investment companies by distributing substantially all taxable income to their
shareholders in a manner which results in no tax to the Funds. Therefore, no
Federal income or excise tax provision is required. In addition, the Advisor
Municipal, Advisor Intermediate Municipal, and Advisor Washington Funds intend
to satisfy conditions which will enable them to pay dividends which, for
shareholders, are exempt from Federal income taxes. Any portion of dividends
representing net short-term capital gains, however, is not exempt and will be
treated as taxable dividends for Federal income tax purposes. In addition,
income which is derived from amortization on bonds purchased below their issued
price after April 30, 1993, will be treated as ordinary income for Federal
income tax purposes.
16
<PAGE> 19
2. INVESTMENT TRANSACTIONS
<TABLE>
<CAPTION>
SAFECO SAFECO
SAFECO SAFECO ADVISOR ADVISOR
ADVISOR ADVISOR INTERMEDIATE- U.S.
EQUITY NORTHWEST TERM GOVERNMENT
FUND FUND TREASURY FUND FUND
- ------------------------------------------------------------------------------------------------------------------------
- -- (In Thousands) --
<S> <C> <C> <C> <C>
Purchases for the Six-Month Period Ended June 30, 1996
(including $0, $0, $9,716, and $5,668, respectively,
of U.S. Government obligations) $ 2,702 $ 1,842 $ 9,716 $ 5,668
======= ======= ======= =======
Sales for the Six-Month Period Ended June 30, 1996
(including $0, $0, $9,505, and $5,833, respectively,
of U.S. Government obligations) $ 2,833 $ 1,848 $ 9,504 $ 5,833
======= ======= ======= =======
UNREALIZED APPRECIATION (DEPRECIATION) AT JUNE 30, 1996:
Aggregate Gross Unrealized Appreciation for
Investment Securities in Which There is an Excess
of Value Over Identified Cost $ 1,154 $ 1,153 $ 12 $ 2
Aggregate Gross Unrealized Depreciation for
Investment Securities in Which There is an Excess
of Identified Cost Over Value (73) (386) (46) (54)
------- ------- ------- -------
Net Unrealized Appreciation (Depreciation) $ 1,081 $ 767 $ (34) $ (52)
======= ======= ======= =======
<CAPTION>
SAFECO ADVISOR SAFECO
SAFECO SAFECO INTERMEDIATE- ADVISOR
ADVISOR ADVISOR TERM WASHINGTON
GNMA MUNICIPAL MUNICIPAL MUNICIPAL
FUND BOND FUND BOND FUND BOND FUND
- ------------------------------------------------------------------------------------------------------------------------
- -- (In Thousands) --
<S> <C> <C> <C> <C>
Purchases for the Six-Month Period Ended June 30, 1996
(including $1,163, $0, $0, and $0, respectively,
of U.S. Government obligations) $ 1,163 $ 538 $ 157 $ 188
======= ======= ======= =======
Sales for the Six-Month Period Ended June 30, 1996
(including $1,308, $0, $0, and $0, respectively,
of U.S. Government obligations) $ 1,308 $ 513 $ 256 $ --
======= ======= ======= =======
Unrealized Appreciation (Depreciation) at
June 30, 1996
Aggregate Gross Unrealized Appreciation for
Investment Securities in Which There is an Excess
of Value Over Identified Cost $ 128 $ 492 $ 206 $ 377
Aggregate Gross Unrealized Depreciation for
Investment Securities in Which There is an Excess
of Identified Cost Over Value (42) (18) (4) (13)
------- ------- ------- -------
Net Unrealized Appreciation $ 86 $ 474 $ 202 $ 364
======= ======= ======= =======
</TABLE>
17
<PAGE> 20
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
3. TRUST SHARES
Each Fund has an unlimited number of Class A, B, and C shares authorized,
and par value is $.001. Paid in capital (in thousands) at June 30, 1996, is as
follows:
<TABLE>
<S> <C>
Advisor Equity $6,606*
Advisor Northwest 5,300*
Advisor Intermediate Treasury 5,432*
Advisor U.S. Government 5,065*
Advisor GNMA 5,154*
Advisor Municipal 5,142**
Advisor Intermediate Municipal 5,045**
Advisor Washington 5,355**
</TABLE>
* Includes 500,000 shares (166,667 in each of Class A, B, and C) purchased for
$5,000,000 by SAFECO Corporation.
** Includes 500,000 shares (166,667 in each of Class A, B, and C) purchased for
$5,000,000 by SAFECO Asset Management Company.
4. INVESTMENT ADVISORY FEES AND OTHER
TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEES. SAFECO Asset Management Company receives
investment advisory fees from the Funds. The fee is based on average daily net
assets at the annual rates shown below.
<TABLE>
<CAPTION>
ADVISOR INTERMEDIATE
TREASURY, ADVISOR U.S.
GOVERNMENT, ADVISOR
GNMA, ADVISOR
MUNICIPAL, ADVISOR
INTERMEDIATE
ADVISOR EQUITY AND MUNICIPAL, AND ADVISOR
ADVISOR NORTHWEST FUNDS WASHINGTON FUNDS
- ---------------------------------------------------------------
<S> <C> <C> <C>
Net Assets Annual Fee Net Assets Annual Fee
$0-$500,000,000 .75 of 1% $0-$500,000,000 .60 of 1%
$500,000,001- $500,000,001-
$1,000,000,000 .65 of 1% $1,000,000,000 .50 of 1%
Over Over
$1,000,000,000 .55 of 1% $1,000,000,000 .40 of 1%
</TABLE>
SHAREHOLDER SERVICE AND DISTRIBUTION FEES. SAFECO Services Corporation
receives transfer agent fees. Pursuant to Rule 12b-1 under the Investment
Company Act of 1940, each Class pays SAFECO Securities shareholder service fees
at the annual rate of 0.25% of the aggregate average daily net assets of a
Class. In addition to service fees, Class B and Class C shares each pay SAFECO
Securitites distribution fees at the annual rate of 0.75% of the aggregated
average daily net assets of the respective Class.
AFFILIATE OWNERSHIP. At June 30, 1996, SAFECO Corporation owned 500,000
shares of the Advisor Equity, Advisor Northwest, Advisor Intermediate Treasury,
Advisor U.S. Government, and Advisor GNMA Funds, and SAFECO Asset Management
Company owned 500,000 shares of the Advisor Municipal, Advisor Intermediate
Municipal, and Advisor Washington Funds.
DEFERRED ORGANIZATION EXPENSE. Costs related to the organization of each
of the Advisor Funds have been deferred and, until July 10, 1996, were being
amortized to operations over a period of sixty months. These costs were advanced
by the Investment Adviser. Effective July 10, 1996, the date that the Board of
Trustees approved the liquidation and dissoultion of SAFECO Advisor Series Trust
(see Note 7), the funds ceased to amortize organization expenses.
EXPENSE REIMBURSEMENT. SAFECO Asset Management Company voluntarily
reimbursed certain state filing fees incurred by the Funds during the six-month
period ended June 30, 1996, as detailed in the Statement of Operations.
5. NET INVESTMENT LOSS
The Advisor Northwest Fund had an accumulated net investment loss of
$49,116 at December 31, 1995. This amount was netted against short-term capital
gains realized during the year ended December 31, 1995. At June 30, 1996, the
Advisor Northwest Fund had an accumulated investment loss of $28,151.
6. ACCUMULATED UNDISTRIBUTED
REALIZED CAPITAL GAIN/(LOSS)
The Funds had the following amounts of accumulated undistributed net
realized gain (loss) on investment transactions at June 30, 1996:
<TABLE>
<CAPTION>
- (IN THOUSANDS) -
<S> <C>
Advisor Equity $330
Advisor Northwest 7
Advisor Intermediate Treasury 168
Advisor U.S. Government 87
Advisor GNMA 24
Advisor Municipal 53
Advisor Intermediate Municipal (18)
</TABLE>
7. PLAN OF LIQUIDATION
On July 10, 1996, the Board of Trustees approved a plan of liquidation and
dissolution of the SAFECO Advisor Series Trust. This plan, which will take
effect on November 1, 1996, includes liquidation of portfolio securities, final
distributions to shareholders, and cessation of business. Shareholders will be
provided the opportunity to purchase a corresponding number of shares of other
SAFECO Mutual Funds with similar objectives with no associated sales charge.
18
<PAGE> 21
8. FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
<TABLE>
<CAPTION>
SAFECO ADVISOR EQUITY FUND
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B
1996(1) 1995(2) 1994(3) 1996(1) 1995(2) 1994(3)
---------------------------------------- ----------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $ 11.35 $ 9.76 $ 10.00 $ 11.35 $ 9.76 $ 10.00
Income from Investment Operations
Net Investment Income 0.05 0.16 0.03 0.01 0.08 0.01
Net Realized and Unrealized
Gain (Loss) on Investments 1.20 2.80 (0.24) 1.19 2.80 (0.24)
--------- ---------- ---------- --------- --------- ---------
Total from Investment Operations 1.25 2.96 (0.21) 1.20 2.88 (0.23)
--------- ---------- ---------- --------- --------- ---------
Distributions to Shareholders from
Net Investment Income (0.05) (0.16) (0.03) (0.01) (0.08) (0.01)
Net Realized Gain on Investments -- (1.21) -- -- (1.21) --
--------- ---------- ---------- --------- --------- ---------
Total Distributions (0.05) (1.37) (0.03) (0.01) (1.29) (0.01)
Net Asset Value at End of Period $ 12.55 $ 11.35 $ 9.76 $ 12.54 $ 11.35 $ 9.76
========= ========== ========== ========= ========= =========
Total Return (a) 10.99%** 30.42% -2.10%** 10.54%** 29.44% -2.29%
Net Assets at End of Period (000's) $ 3,262 $ 2,363 $ 1,628 $ 2,194 $ 1,955 $ 1,629
Ratio of Expenses to Average Net Assets 1.51%* 1.62% 2.57%* 2.23%* 2.38% 3.31%*
Ratio of Expenses to Average Net Assets
Before Expense Reimbursement 1.90%* 2.03% -- 2.62%* 2.79% --
Ratio of Net Investment Income to
Average Net Assets 0.83%* 1.44% 1.18%* 0.10%* 0.69% 0.44%*
Portfolio Turnover Rate 77.62%* 120.09% 34.83%* 77.62%* 120.09% 34.83%*
</TABLE>
<TABLE>
<CAPTION>
CLASS C
--------------------------------------------
1996(1) 1995(2) 1994(3)
--------------------------------------------
<S> <C> <C> <C>
Net Asset Value at Beginning of Period $ 11.34 $ 9.76 $ 10.00
Income from Investment Operations
Net Investment Income 0.01 0.08 0.01
Net Realized and Unrealized
Gain (Loss) on Investments 1.19 2.79 (0.24)
--------- ---------- ----------
Total from Investment Operations 1.20 2.87 (0.23)
--------- ---------- ----------
Distributions to Shareholders from
Net Investment Income (0.01) (0.08) (0.01)
Net Realized Gain on Investments -- (1.21) --
--------- ---------- ----------
Total Distributions (0.01) (1.29) (0.01)
--------- ---------- ----------
Net Asset Value at End of Period $ 12.53 $ 11.34 $ 9.76
========= ========== ==========
Total Return (a) 10.54%** 29.43% -2.29%**
Net Assets at End of Period (000's) $ 2,562 $ 2,170 $ 1,635
Ratio of Expenses to Average Net Assets 2.24%* 2.37% 3.32%*
Ratio of Expenses to Average Net Assets
Before Expense Reimbursement 2.63%* 2.78% --
Ratio of Net Investment Income to
Average Net Assets 0.10%* 0.69% 0.44%*
Portfolio Turnover Rate 77.62%* 120.09% 34.83%*
</TABLE>
<TABLE>
<CAPTION>
SAFECO ADVISOR NORTHWEST FUND
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B
------------------------------------- ----------------------------------------
1996(1) 1995(2) 1994(3) 1996(1) 1995(2) 1994(3)
------------------------------------- -----------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $ 10.38 $ 9.75 $ 10.00 $ 10.28 $ 9.73 $ 10.00
Income from Investment Operations
Net Investment Income (Loss) (0.03) (0.04) (0.01) (0.07) (0.12) (0.02)
Net Realized and Unrealized
Gain (Loss) on Investments 1.17 0.86 (0.24) 1.16 0.86 (0.25)
---------- ---------- ---------- ---------- ---------- ----------
Total from Investment Operations 1.14 0.82 (0.25) 1.09 0.74 (0.27)
---------- ---------- ---------- ---------- ---------- ----------
Distributions to Shareholders from
Net Investment Income -- -- -- -- -- --
Net Realized Gain on Investments -- (0.19) -- -- (0.19) --
---------- ---------- ---------- ---------- ---------- ----------
Total Distributions -- (0.19) -- -- (0.19) --
---------- ---------- ---------- ---------- ---------- ----------
Net Asset Value at End of Period $ 11.52 $ 10.38 $ 9.75 $ 11.37 $ 10.28 $ 9.73
========== ========== ========== ========== ========== ==========
Total Return (a) 10.98%** 8.38% -2.50%** 10.60%** 7.57% -2.70%**
Net Assets at End of Period (000's) $ 2,088 $ 1,850 $ 1,626 $ 1,976 $ 1,740 $ 1,622
Ratio of Expenses to Average Net Assets 1.56%* 1.51% 2.28%* 2.30%* 2.25% 3.03%*
Ratio of Expenses to Average Net Assets
Before Expense Reimbursement 1.95%* 1.93% -- 2.69%* 2.67%
Ratio of Net Investment Income (Loss)
to Average Net Assets -0.49%* -0.43% -0.20%* -1.23%* -1.17% -0.95%*
Portfolio Turnover Rate 65.65%* 32.16% None* 65.65%* 32.16% None*
</TABLE>
<TABLE>
<CAPTION>
CLASS C
--------------------------------------------
1996(1) 1995(2) 1994(3)
--------------------------------------------
<S> <C> <C> <C>
Net Asset Value at Beginning of Period $ 10.28 $ 9.73 $ 10.00
Income from Investment Operations
Net Investment Income (Loss) (0.07) (0.12) (0.02)
Net Realized and Unrealized
Gain (Loss) on Investments 1.16 0.86 (0.25)
---------- ---------- ----------
Total from Investment Operations 1.09 0.74 (0.27)
---------- ---------- ----------
Distributions to Shareholders from
Net Investment Income -- -- --
Net Realized Gain on Investments -- (0.19) --
---------- ---------- ----------
Total Distributions -- (0.19) --
---------- ---------- ----------
Net Asset Value at End of Period $ 11.37 $ 10.28 $ 9.73
========== ========== ==========
Total Return (a) 10.60%** 7.57% -2.70%**
Net Assets at End of Period (000's) $ 1,981 $ 1,745 $ 1,625
Ratio of Expenses to Average Net Assets 2.29%* 2.25% 3.03%*
Ratio of Expenses to Average Net Assets
Before Expense Reimbursement -- 2.68%* 2.67%
Ratio of Net Investment Income (Loss)
to Average Net Assets -1.22%* -1.17% -0.95%*
Portfolio Turnover Rate 65.65%* 32.16% None*
</TABLE>
(a) Total return excludes the effects of sales charges. If sales charges were
included, the total return for Class A and Class B would be lower.
** Not Annualized.
* Annualized.
(1) For the six-month period ended June 30, 1996.
(2) For the year ended December 31, 1995.
(3) For the period from September 30, 1994 (Commencement of Operations) to
December 31, 1994.
19
<PAGE> 22
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
8. FINANCIAL HIGHLIGHTS (CONTINUED)
(For a Share Outstanding Throughout the Period)
<TABLE>
<CAPTION>
SAFECO ADVISOR INTERMEDIATE-TERM TREASURY FUND
- ------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C
------------------------- ------------------------- -------------------------
1996(1) 1995(2) 1994(3) 1996(1) 1995(2) 1994(3) 1996(1) 1995(2) 1994(3)
------------------------- ------------------------- -------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $10.79 $ 9.93 $10.00 $10.80 $ 9.93 $10.00 $10.80 $ 9.93 $10.00
Income from Investment Operations
Net Investment Income 0.23 0.53 0.11 0.19 0.45 0.09 0.19 0.45 0.09
Net Realized and Unrealized
Gain (Loss) on Investments (0.51) 1.02 (0.07) (0.52) 1.03 (0.07) (0.52) 1.03 (0.07)
------ ------ ------ ------ ------ ------ ------ ------ ------
Total from Investment Operations (0.28) 1.55 0.04 (0.33) 1.48 0.02 (0.33) 1.48 0.02
------ ------ ------ ------ ------ ------ ------ ------ ------
Distributions to Shareholders from
Net Investment Income (0.23) (0.53) (0.11) (0.19) (0.45) (0.09) (0.19) (0.45) (0.09)
Net Realized Gain on Investments -- (0.16 -- -- (0.16) -- -- (0.16) --
------ ------ ------ ------ ------ ------ ------ ------ ------
Total Distributions (0.23) (0.69) (0.11) (0.19) (0.61) (0.09) (0.19) (0.61) (0.09)
------ ------ ------ ------ ------ ------ ------ ------ ------
Net Asset Value at End of Period $10.28 $10.79 $ 9.93 $10.28 $10.80 $ 9.93 $10.28 $10.80 $ 9.93
====== ====== ====== ====== ====== ====== ====== ====== ======
Total Return (a) -2.60%** 16.03% 0.41%** -2.95%** 15.17% 0.22%** -2.96%** 15.16% 0.22%**
Net Assets at End of Period (000's) $2,001 $1,946 $1,655 $1,713 $1,799 $1,655 $1,853 $1,847 $1,664
Ratio of Expenses to Average Net Assets 1.36%* 1.32% 1.86%* 2.08%* 2.06% 2.61%* 2.10%* 2.07% 2.61%*
Ratio of Expenses to Average Net Assets
Before Expense Reimbursement 1.75%* 1.77% -- 2.47%* 2.51% -- 2.49%* 2.52% --
Ratio of Net Investment Income to
Average Net Assets 4.41%* 5.08% 4.42%* 3.69%* 4.33% 3.67%* 3.66%* 4.33% 3.67%*
Portfolio Turnover Rate 157.04%* 17.79% 346.43%* 157.04%* 17.79% 346.43%* 157.04%* 17.79% 346.43%*
</TABLE>
<TABLE>
<CAPTION>
SAFECO ADVISOR U.S. GOVERNMENT FUND
- ----------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C
------------------------- ------------------------- -------------------------
1996(1) 1995(2) 1994(3) 1996(1) 1995(2) 1994(3) 1996(1) 1995(2) 1994(3)
------------------------- ------------------------- -------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $10.56 $ 9.99 $10.00 $10.56 $ 9.99 $10.00 $10.56 $ 9.99 $10.00
Income from Investment Operations
Net Investment Income 0.22 0.51 0.11 0.18 0.43 0.09 0.18 0.43 0.09
Net Realized and Unrealized
Gain (Loss) on Investments (0.49) 0.95 (0.01) (0.49) 0.95 (0.01) (0.49) 0.95 (0.01)
------ ------ ------ ------ ------ ------ ------ ------ ------
Total from Investment Operations (0.27) 1.46 0.10 (0.31) 1.38 0.08 (0.31) 1.38 0.08
------ ------ ------ ------ ------ ------ ------ ------ ------
Distributions to Shareholders from
Net Investment Income (0.22) (0.51) (0.11) (0.18) (0.43) (0.09) (0.18) (0.43) (0.09)
Net Realized Gain on Investments -- (0.38 -- -- (0.38) -- -- (0.38) --
------ ------ ------ ------ ------ ------ ------ ------ ------
Total Distributions (0.22) (0.89) (0.11) (0.18) (0.81) (0.09) (0.18) (0.81) (0.09)
------ ------ ------ ------ ------ ------ ------ ------ ------
Net Asset Value at End of Period $10.07 $10.56 $ 9.99 $10.07 $10.56 $ 9.99 $10.07 $10.56 $ 9.99
====== ====== ====== ====== ====== ====== ====== ====== ======
Total Return (a) -2.59%** 14.92% 0.99%** -2.95%** 14.07% 0.79%** -2.95%** 14.07% 0.79%**
Net Assets at End of Period (000's) $1,732 $1,761 $1,665 $1,678 $1,760 $1,664 $1,690 $1,760 $1,664
Ratio of Expenses to Average Net Assets 1.37%* 1.32% 1.85%* 2.11%* 2.07% 2.60%* 2.11%* 2.07% 2.60%*
Ratio of Expenses to Average Net Assets
Before Expense Reimbursement 1.76%* 1.76% -- 2.50%* 2.51% -- 2.50%* 2.51% --
Ratio of Net Investment Income
to Average Net Assets 4.26%* 4.88% 4.29%* 3.52%* 4.13% 3.54%* 3.52%* 4.13% 3.54%*
Portfolio Turnover Rate 59.61%* 27.26% 445.09%* 59.61%* 27.26% 445.09%* 59.61%* 27.26% 445.09%*
</TABLE>
(a) Total return excludes the effects of sales charges. If sales charges were
included, the total return for Class A and Class B would be lower.
** Not Annualized.
* Annualized.
(1) For the six-month period ended June 30, 1996.
(2) For the year ended December 31, 1995.
(3) For the period from September 30, 1994 (Commencement of Operations) to
December 31, 1994.
20
<PAGE> 23
B. FINANCIAL HIGHLIGHTS (CONTINUED)
(For a Share Outstanding Throughout the Period)
<TABLE>
<CAPTION>
SAFECO ADVISOR GNMA FUND
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C
-------------------------- -------------------------- --------------------------
1996(1) 1995(2) 1994(3) 1996(1) 1995(2) 1994(3) 1996(1) 1995(2) 1994(3)
-------------------------- -------------------------- --------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $10.62 $ 9.80 $10.00 $10.62 $ 9.80 $10.00 $10.62 $ 9.80 $10.00
Income from Investment Operations
Net Investment Income 0.31 0.64 0.13 0.27 0.56 0.11 0.27 0.56 0.11
Net Realized and Unrealized
Gain (Loss) on Investments (0.40) 0.82 (0.20) (0.40) 0.82 (0.20) (0.40) 0.82 (0.20)
------ ------ ------ ------ ------ ------ ------ ------ ------
Total from Investment Operations (0.09) 1.46 (0.07) (0.13) 1.38 (0.09) (0.13) 1.38 (0.09)
------ ------ ------ ------ ------ ------ ------ ------ ------
Distributions to Shareholders from
Net Investment Income (0.31) (0.64) (0.13) (0.27) (0.56) (0.11) (0.27) (0.56) (0.11)
Net Realized Gain on Investments -- -- -- -- -- -- -- -- --
------ ----- ------ ----- ------ ------ ------ ------ ------
Total Distributions (0.31) (0.64) (0.13) (0.27) (0.56) (0.11) (0.27) (0.56) (0.11)
------ ------ ------ ------ ------ ------ ------ ------ ------
Net Asset Value at End of Period $10.22 $10.62 $ 9.80 $10.22 $10.62 $ 9.80 $10.22 $10.62 $ 9.80
====== ====== ====== ====== ====== ====== ====== ====== ======
Total Return (a) -0.84%** 15.28% -0.72%** -1.21%** 14.43% -0.90%** -1.21%** 14.43% -0.90%**
Net Assets at End of Period (000's) $1,818 $1,838 $1,633 $1,703 $1,770 $1,633 $1,744 $1,782 $1,632
Ratio of Expenses to Average Net Assets 1.40%* 1.34% 1.98%* 2.14%* 2.09% 2.73%* 2.14%* 2.09% 2.73%*
Ratio of Expenses to Average Net Assets
Before Expense Reimbursement 1.79%* 1.78% -- 2.53%* 2.53% -- 2.53%* 2.53% --
Ratio of Net Investment Income to
Average Net Assets 5.98%* 6.22% 5.11%* 5.25%* 5.47% 4.36%* 5.24%* 5.47% 4.36%*
Portfolio Turnover Rate 45.79%* 29.62% 2.74%* 45.79%* 29.62% 2.74%* 45.79%* 29.62% 2.74%*
</TABLE>
<TABLE>
<CAPTION>
SAFECO ADVISOR MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C
-------------------------- -------------------------- --------------------------
1996(1) 1995(2) 1994(3) 1996(1) 1995(2) 1994(3) 1996(1) 1995(2) 1994(3)
-------------------------- -------------------------- --------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of
Period $11.78 $ 9.90 $ 10.00 $11.78 $ 9.90 $ 10.00 $11.78 $ 9.90 $ 10.00
Income from Investment Operations
Net Investment Income 0.25 0.50 0.08 0.21 0.42 0.06 0.21 0.42 0.06
Net Realized and Unrealized
Gain (Loss) on Investments (0.73) 1.88 (0.10) (0.73) 1.88 (0.10) (0.73) 1.88 (0.10)
------ ------ ------- ------ ------ ------ ------ ------ -------
Total from Investment
Operations (0.48) 2.38 (0.02) (0.52) 2.30 (0.04) (0.52) 2.30 (0.04)
------ ------ ------- ------ ------ ------- ------ ------ -------
Distributions to Shareholders
from
Net Investment Income (0.25) (0.50) (0.08) (0.21) (0.42) (0.06) (0.21) (0.42) (0.06)
Net Realized Gain on Investments -- -- -- -- -- -- -- -- --
------ ------ ------- ------ ------ ------ ------ ------ -------
Total Distributions (0.25) (0.50) (0.08) (0.21) (0.42) (0.06) (0.21) (0.42) (0.06)
Net Asset Value at End of Period $11.05 $11.78 $ 9.90 $11.05 $11.78 $ 9.90 $11.05 $11.78 $ 9.90
====== ====== ======= ====== ====== ======= ====== ====== =======
Total Return (a) -4.09%** 24.54% -0.16%** -4.45%** 23.62% -0.35%** -4.45%** 23.62% -0.35%**
Net Assets at End of Period (000's) $1,884 $1,964 $ 1,650 $1,872 $1,989 $ 1,650 $1,913 $1,977 $ 1,649
Ratio of Expenses to Average Net
Assets 1.33%* 1.29% 1.92%* 2.08%* 2.04% 2.67%* 2.08%* 2.04% 2.67%*
Ratio of Expenses to Average Net
Assets Before Expense
Reimbursement 1.72%* 1.70% -- 2.47%* 2.45% -- 2.47%* 2.45% --
Ratio of Net Investment Income
to Average Net Assets 4.44%* 4.60% 3.33%* 3.69%* 3.85% 2.59%* 3.69%* 3.85% 2.59%*
Portfolio Turnover Rate 18.37%* 4.67% 492.95%* 18.37%* 4.67% 492.95%* 18.37%* 4.67% 492.95%*
(a) Total return excludes the effects of sales charges. If sales charges were
included, the total return for Class A and Class B would be lower.
** Not Annualized.
* Annualized.
(1) For the six-month period ended June 30, 1996.
(2) For the year ended December 31, 1995.
(3) For the period from September 30, 1994 (Commencement of Operations) to
December 31, 1994.
</TABLE>
21
<PAGE> 24
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
8. FINANCIAL HIGHLIGHTS (CONTINUED)
(For a Share Outstanding Throughout the Period)
<TABLE>
<CAPTION>
SAFECO ADVISOR IMMEDIATE-TERM MUNICIPAL FUND
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C
--------------------------- --------------------------- ---------------------------
1996(1) 1995(2) 1994(3) 1996(1) 1995(2) 1994(3) 1996(1) 1995(2) 1994(3)
--------------------------- --------------------------- ---------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of $10.71 $ 9.80 $ 10.00 $10.71 $ 9.80 $ 10.00 $10.71 $ 9.80 $ 10.00
Period
Income from Investment
Operations
Net Investment Income 0.21 0.44 0.07 0.17 0.36 0.05 0.17 0.36 0.05
Net Realized and Unrealized
Gain (Loss) on Investments (0.34) 0.91 (0.20) (0.34) 0.91 (0.20) (0.34) 0.91 (0.20)
Total from Investment (0.13) 1.35 (0.13) (0.17) 1.27 (0.15) (0.17) 1.27 (0.15)
Operations
Distributions to Shareholders
from Net Investment Income (0.21) (0.44) (0.07) (0.17) (0.36) (0.05) (0.17) (0.36) (0.05)
Net Realized Gain on -- -- -- -- -- -- -- -- --
Investments
Total Distributions (0.21) (0.44) (0.07) (0.17) (0.36) (0.05) (0.17) (0.36) (0.05)
Net Asset Value at End of $10.37 $10.71 $ 9.80 $10.37 $10.71 $ 9.80 $10.37 $10.71 $ 9.80
Period
Total Return (a) -1.19%** 13.93% -1.29%** -1.56%** 13.09% -1.48%** -1.56%** 13.09% -1.48%**
Net Assets at End of Period $1,729 $1,786 $ 1,633 $1,730 $1,785 $ 1,633 $1,771 $1,825 $ 1,633
(000's)
Ratio of Expenses to Average Net
Assets 1.35%* 1.31% 1.87%* 2.10%* 2.06% 2.62%* 2.10%* 2.06% 2.62%*
Ratio of Expenses to Average Net
Assets Before Expense
Reimbursement 1.74%* 1.74% -- 2.49%* 2.49% -- 2.49%* 2.49% --
Ratio of Net Investment Income to
Average Net Assets 4.06%* 4.19% 2.85%* 3.32%* 3.44% 2.10%* 3.31%* 3.44% 2.10%*
Portfolio Turnover Rate 6.12%* 1.19% 513.36%* 6.12%* 1.19% 513.36%* 6.12%* 1.19% 513.36%*
</TABLE>
<TABLE>
<CAPTION>
SAFECO ADVISOR WASHINGTON MUNICIPAL BOND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C
--------------------------- --------------------------- ---------------------------
1996(1) 1995(2) 1994(3) 1996(1) 1995(2) 1994(3) 1996(1) 1995(2) 1994(3)
--------------------------- --------------------------- ---------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of $11.20 $ 9.82 $ 10.00 $11.19 $ 9.82 $ 10.00 $11.20 $ 9.82 $ 10.00
Period
Income from Investment Operations
Net Investment Income 0.25 0.50 0.09 0.21 0.42 0.07 0.21 0.42 0.07
Net Realized and Unrealized
Gain (Loss) on Investments (0.48) 1.40 (0.18) (0.48) 1.39 (0.18) (0.48) 1.40 (0.18)
Total from Investment
Operations (0.23) 1.90 (0.09) (0.27) 1.81 (0.11) (0.27) 1.82 (0.11)
Distributions to Shareholders from
Net Investment Income (0.25) (0.50) (0.09) (0.21) (0.42) (0.07) (0.21) (0.42) (0.07)
Net Realized Gain on Investments -- (0.02) -- -- (0.02) -- -- (0.02) --
Total Distributions (0.25) (0.52) (0.09) (0.21) (0.44) (0.07) (0.21) (0.44) (0.07)
Net Asset Value at End of Period $10.72 $11.20 $ 9.82 $10.71 $11.19 $ 9.82 $10.72 $11.20 $ 9.82
Total Return (a) -2.05%** 19.75% -0.93%** -2.41%** 18.76% -1.12%** -2.41%** 18.87% -1.12%**
Net Assets at End of Period (000's) $1,974 $1,911 $ 1,636 $1,892 $1,970 $ 1,667 $1,853 $1,934 $ 1,694
Ratio of Expenses to Average
Net Assets 1.33%* 1.30% 1.90%* 2.07%* 2.05% 2.64%* 2.07%* 2.04% 2.64%*
Ratio of Expenses to Average Net
Assets Before Expense
Reimbursement 2%* 1.71% -- 2.46%* 2.46% -- 2.46%* 2.45% --
Ratio of Net Investment Income
to Average Net Assets 4.63%* 4.74% 3.48%* 3.88%* 3.99% 2.72%* 3.89%* 3.99% 2.72%*
Portfolio Turnover Rate 0.00%* 13.86% 510.18%* 0.00%* 13.86% 510.18%* 0.00%* 13.86% 510.18%*
</TABLE>
(a) Total return excludes the effects of sales charges. If sales charges were
included, the total return for Class A and Class B would be lower.
** Not Annualized.
* Annualized.
(1) For the six-month period ended June 30, 1996.
(2) For the year ended December 31, 1995.
(3) For the period from September 30, 1994 (Commencement of Operations) to
December 31, 1994.
22
<PAGE> 25
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23
<PAGE> 26
(This page left blank intentionally.)
24
<PAGE> 27
(This page left blank intentionally.)
25
<PAGE> 28
BOARD OF TRUSTEES
Boh A. Dickey, Chairman
Barbara J. Dingfield
Richard W. Hubbard
Richard E. Lundgren
L.D. McClean
Larry L. Pinnt
John W. Schneider
OFFICERS
David F. Hill, President
Ronald L. Spaulding, Vice President and Treasurer
Neal A. Fuller, Vice President and Controller
INVESTMENT ADVISER
SAFECO Asset Management Company
DISTRIBUTOR
SAFECO Securities, Inc.
TRANSFER AGENT
SAFECO Services Corporation
CUSTODIAN
U.S. Bank of Washington, N.A.
[SAFECO ADVISOR FUNDS LOGO]
SAFECO Securities, Inc.
P.O. Box 34680, Seattle, WA 98124-1680
