<PAGE> 1
[INVENTOR FUNDS LOGO]
1995
SEMI-ANNUAL
REP0RT TO
SHAREHOLDERS
October 31, 1995
[GRAPHIC 1]
<PAGE> 2
TABLE OF CONTENTS INVENTOR FUNDS
================================================================================
<TABLE>
<S> <C>
Letter to Shareholders .................................................... 1
Advisers' Review .......................................................... 3
Statements of Net Assets .................................................. 11
Statements of Operations .................................................. 30
Statements of Changes in Net Assets ....................................... 32
Financial Highlights ...................................................... 36
Notes to Financial Statements ............................................. 38
</TABLE>
================================================================================
October 31, 1995
<PAGE> 3
LETTER TO SHAREHOLDERS INVENTOR FUNDS
================================================================================
DEAR INVENTOR FUNDS SHAREHOLDER,
What a difference a year makes! Last October, not only were we in the midst
of a significant market downturn, we saw one of the worst bond markets in
history. And both those events happened in the face of several interest rate
increases the Federal Reserve made as it feared that the economy was overheating
with the potential of creating unwanted inflation.
[PHOTO]
As we said in our last letter to you in April, it seems the Fed has brought
the economy in for a "soft landing". The past six months has accentuated this as
the markets continue to rally under what appears to be modest economic growth,
subdued inflation fears and continued strong corporate earnings. We do not see
this abating in the near future, particularly if the balanced budget bill comes
to fruition and doesn't become watered down during the compromise process.
In fact, this may add some steam to the momentum of the markets' rallies into
1996.
Since April, the stock market has continued its upward trend, although not as
dramatically as from mid-December through the end of April. Although there were
a few bumps along the way, the market grew by about 13%, as measured by the
Standard & Poor's 500, over the six month period. The bond market continued to
rise which pushed interest rates lower by about 1% across the board on
intermediate and long-term Treasury Securities. Shorter maturity issues
compressed and began to flatten between three months and two years, as evidenced
by money market fund rates which declined by only 35 basis points. Although this
market rally has hindered income, or yield performance, it had a tremendous
impact on total return by pushing up the prices of securities -- and in our
case, share prices -- significantly.
Overall we've been pleased with the funds' performances. The fund managers
have progressed through the early start-up stages, trailing the benchmarks by
only modest amounts. Benefiting from asset growth and having time to better
position the portfolios we feel we are now in place to have better future
performance. We saw some evidence of this already during the last quarter, as
the relative performance of several funds displayed improvements within the
funds' objective. The fund managers share their own assessment of performance
and how they have positioned the portfolios later in this report.
================================================================================
October 31, 1995 1
<PAGE> 4
LETTER TO SHAREHOLDERS INVENTOR FUNDS
================================================================================
In July, the Adviser met with the fund manager of the Pennsylvania Municipal
Bond Fund to determine means of increasing yield, while maintaining the
conservative parameters defined by the Fund's investment objective. The
resulting decisions have paid off as the relative performance of the fund
continues to improve and yield has come more in line with that of similar funds.
In August, the Adviser received permission from Standard & Poor's to extend
the maximum average weighted maturity of the Treasury Securities Money Market
Fund from 50 to 55 days while maintaining the fund's triple-A rating. Since
then, the fund manager has been gradually extending the average maturity to take
advantage of higher yielding securities.
On August 28, Integra Financial Corporation, the parent company of the
Adviser, entered into a definitive agreement to be acquired by National City
Corporation of Cleveland, Ohio. We will keep shareholders informed of any impact
the pending merger may have on your investment with the Inventor Funds.
I hope that you find this report useful and informative. And in closing I
want to thank you for investing in the Inventor Funds and wish you a prosperous
New Year.
Sincerely,
/s/ DOUGLAS W. SHERRATT
------------------------
Douglas W. Sherratt
Executive Vice President
Integra Trust Company
Investment Adviser
================================================================================
2 October 31, 1995
<PAGE> 5
ADVISERS' REVIEW INVENTOR FUNDS
================================================================================
ECONOMIC OUTLOOK
Since our last report in April, the financial markets have continued to perform
strongly. Stocks have continued their rally and bond rates are lower, both of
which have provided excellent returns to investors, with lower rates meaning
lower funding and borrowing costs to all sectors.
The U.S. economy, though uneven, is growing and forecasted to continue at a
pace of 2.5% annually. The first estimate of the third quarter Gross Domestic
Product (GDP) was unexpectedly high, 4.2%. We believe the economy will grow at a
more moderate pace through the remainder of the year and into early 1996.
Unemployment remains low at 5.6%, despite the headline grabbing announcements
of major corporate layoffs. Initial employment claims moved lower during
September in keeping with the moderate strength in the labor market. Surveys of
employers and hiring managers indicate many companies are maintaining
respectable hiring plans for the remainder of 1995 and 1996. Business spending
for capital goods and facilities appears to have peaked in the second quarter.
However, it nonetheless continues to run consistently at a historically high
level.
Growth in real disposable income for consumers is likely to finish the year
4% higher than in 1994, and measures of consumer confidence continue to be high.
The ABC/Money Market Magazine Comfort Index, for example, was its highest since
the start of 1990. The second quarter's 3.4% rate of growth in consumer spending
is expected to carry over into the third and fourth quarters. But retailers are
bracing for a disappointing Christmas. Reason? Consumers are being more
realistic about the debt they've piled up. Expect a practical Christmas present
this year.
Near-term, the outlook could be unsteady. That's because the U.S. economy is
in better shape than widely perceived. Signs of strength (third quarter GDP of
4.2%, low unemployment, etc.) could make the bond market react with higher rates
in the months ahead as it could be perceived that inflationary fears may return.
Long-term, though, the outlook for the U.S. financial markets remains
positive. Federal Reserve Chairman Greenspan described the domestic economy as
improving, "in part because the strong increases in financial market values this
year are likely to provide substantial support to household and business
spending."
Subdued inflation over the next several years points to lower interest rates
and creates a solid foundation for stocks and bonds. And with the odds of a
federal budget deal looking more realistic simply makes the outlook that much
more favorable.
================================================================================
October 31, 1995 3
<PAGE> 6
ADVISERS' REVIEW INVENTOR FUNDS
================================================================================
EQUITY GROWTH FUND
Sub-adviser: STI Capital
Management, N.A.
Portfolio Manager: Anthony Gray
INVESTMENT OBJECTIVE
The Equity Growth Fund seeks capital appreciation by investing primarily in
common stocks and securities convertible into common stocks of U.S. and foreign
issuers. A bottom-up fundamental analysis is used, concentrating on relative
price/earnings ratios to determine buy/sell points. Top-down analysis is used to
confirm and enhance the bottom-up fundamental process.
INVESTMENT REVIEW
Stocks continued their strong 1995 advance through October 31. While returns
were somewhat less than the previous two quarters, the overall returns remained
robust and healthy. The NASDAQ Composite, with its heavy technology weighting,
continued to lead the broader market indexes and has had the best performance
this year.
Recently, we have seen many cross-currents in the stock market including
profit taking, nervousness in the technology sector, and the continuing decline
of profit expectations. While this may prove to increase stock market volatility
in the short-term, the long-term secular trend for stocks still appears
positive.
The Fund is over weighted in the leisure sector and continues to be under
weighted in utilities as compared to the index. The Fund has increased its
holdings in the health care and financial sectors during the past six months.
The major decreases are in the utilities, and the food, beverage and tobacco
sectors. Through much of the year, the larger cap classic growth stocks have
been overshadowed by the rapid cyclical growth of small tech stocks, basic
industry and merger-related issues. As overall market growth has slowed, the
prospects for out performance by our classic growth stocks has increased
substantially.
<TABLE>
<CAPTION>
EQUITY GROWTH FUND
Ten Largest Holdings as of 10/31/95
- --------------------------------------------------------------------------------
Percentage
Security Description of Net Assets
- --------------------------------------------------------------------------------
<S> <C>
Philip Morris Companies ......................................... 2.3%
Columbia/HCA Healthcare ......................................... 2.0
AT&T ............................................................ 1.9
Motorola ........................................................ 1.9
Smith Kline Beecham PLC ......................................... 1.9
Home Depot ...................................................... 1.9
General Electric ................................................ 1.8
ITT ............................................................. 1.8
Merck ........................................................... 1.6
E.I. du Pont de Nemours ......................................... 1.6
</TABLE>
================================================================================
4 October 31, 1995
<PAGE> 7
ADVISERS' REVIEW INVENTOR FUNDS
================================================================================
INTERMEDIATE GOVERNMENT
SECURITIES FUND
Sub-adviser: Wellington Management Company
Portfolio Manager: Thomas L. Pappas
INVESTMENT OBJECTIVE
The Intermediate Government Securities Fund seeks to preserve capital and
maintain a high degree of liquidity while providing current income consistent
with the standards prescribed for the Fund. The Fund invests in U.S. Treasury
obligations, and may invest in futures on U.S. Treasury obligations and
obligations guaranteed as to principal and interest by the agencies and
instrumentalities of the U.S. Government.
INVESTMENT REVIEW
Over the past six months, the Fund's duration and maturity structure has not
been altered significantly. The Fund has kept a mortgage position in the 40-50%
range. We continue to believe that the Federal Reserve will ease further with
continued low inflation and weaker economic news. Despite our outlook for short
term rates, we do not expect a buying frenzy to drive intermediate and longer
term interest rates much lower, leading to a narrow trading range market.
Therefore, we are positioning the fund with approximately a half-year longer
duration and using the mortgage position to provide a higher yield to add
incremental income. This profile gives the Fund a good opportunity to add value
without undertaking substantial risk. Investments in U.S. agency mortgage-backed
securities helped the Fund yield more than the Treasury benchmark.
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT SECURITIES FUND
PORTFOLIO STRUCTURE
- --------------------------------------------------------------------------------
10/31/95
- --------------------------------------------------------------------------------
Merrill Lynch
3-5 Year
Portfolio Treasury Index
- --------------------------------------------------------------------------------
<S> <C> <C>
Weighted Average Maturity ..................... 6.0 3.9
Weighted Average Coupon ....................... 7.9 6.9
Weighted Average Quality ...................... AAA+ AAA+
</TABLE>
================================================================================
October 31, 1995 5
<PAGE> 8
ADVISERS' REVIEW INVENTOR FUNDS
================================================================================
GNMA Securities Fund
Sub-adviser: Wellington Management Company
Portfolio Manager: Thomas L. Pappas
INVESTMENT OBJECTIVE
The GNMA Securities Fund seeks to preserve capital and maintain a high degree of
liquidity while providing current income consistent with the standards
prescribed for the fund. The Fund invests primarily (at least 65% of its assets)
in mortgage pass-through securities guaranteed by the Government National
Mortgage Association.
INVESTMENT REVIEW
An economic environment having stable growth and low inflation should lead to a
bond market with little volatility and a narrow trading range. This in turn
should benefit mortgages. In such an environment, we will maintain a portfolio
structure relatively neutral to the bond market with a slight bias towards
longer term securities. This will permit us to capture additional return should
the Federal Reserve ease, as we expect they will. We favor pass-through
mortgages with slight discount coupons (6.5% to 7.5%) and "seasoned" premium
coupon pass-through securities (8.5% to 9.5%) that have already experienced the
1992-1993 low in rates and are therefore not as sensitive to new refinancing
opportunities. The Fund continues to maintain an 11% position in long Treasury
securities. The duration and maturity characteristics of the Fund are
essentially market-like (when including the income component) while it has a
higher yield with less prepayment risk than the mortgage market as a whole.
<TABLE>
<CAPTION>
GNMA SECURITIES FUND
PORTFOLIO STRUCTURE
- --------------------------------------------------------------------------------
10/31/95
- --------------------------------------------------------------------------------
Lehman
GNMA
Portfolio Index
- --------------------------------------------------------------------------------
<S> <C> <C>
Weighted Average Maturity .................... 8.1 7.5
Weighted Average Coupon ...................... 8.4 8.0
Weighted Average Quality ..................... AAA+ AAA+
</TABLE>
================================================================================
6 October 31, 1995
<PAGE> 9
ADVISERS' REVIEW INVENTOR FUNDS
================================================================================
PENNSYLVANIA MUNICIPAL
BOND FUND
Sub-adviser: Weiss, Peck & Greer L.L.C.
Portfolio Manager: S. Blake Miller
INVESTMENT OBJECTIVE
The Pennsylvania Municipal Bond Fund seeks to provide current income exempt from
both regular federal income and Pennsylvania personal income taxes while
preserving capital.
INVESTMENT REVIEW
Over the past six months, the Fund has maintained an average maturity of between
5-1/2 and 6 years or greater than 80% of its maximum range. This stance has
enhanced the total return of the Fund during a very strong period for municipal
securities. Having an over weighting toward pre-refunded securities was a drag
on performance during the third quarter as this sector under performed the
market as a whole. We view this under performance as a short-lived anomaly, and
expect the pre-refunded section to make a strong contribution to the total
return of the Fund in the months ahead.
================================================================================
October 31, 1995 7
<PAGE> 10
ADVISERS' REVIEW INVENTOR FUNDS
================================================================================
PRIME OBLIGATIONS
MONEY MARKET FUND
Sub-adviser: Wellington Management Company
Portfolio Manager: John Keogh
INVESTMENT OBJECTIVE
The Prime Obligations Money Market Fund seeks to preserve principal
value and maintain a high degree of liquidity while providing current income.
INVESTMENT REVIEW
We expect that the Federal Reserve will lower short term interest rates over the
next few months as fiscal policy remains restrictive, inflation remains benign,
the consumer feels fully leveraged and over taxed, and capital spending is
expected to moderate. The Fund's holdings remain concentrated in commercial
paper and we are maintaining a longer average maturity in the 50 to 60 day range
in order to lock in prevailing yields. The Fund has purchased appropriate
floating rate securities with a current weighting of 7% in this area. The Fund
also has invested in Callable Certificates of Deposit as these short duration
securities offer incremental yield versus traditional CD instruments and
commercial paper while demonstrating the low price volatility desired.
<TABLE>
<S> <C>
CERTIFICATES OF DEPOSIT 3%
FLOATING RATE INSTRUMENT 7%
REPURCHASE AGREEMENT 3%
COMMERCIAL PAPER 80%
BANKERS NOTES 4%
BANKERS ACCEPTANCES 3%
</TABLE>
as of 10/31/95
================================================================================
8 October 31, 1995
<PAGE> 11
ADVISERS' REVIEW INVENTOR FUNDS
================================================================================
TREASURY SECURITIES
MONEY MARKET FUND
Sub-adviser: Wellington Management Company
Portfolio Manager: John Keogh
INVESTMENT OBJECTIVE
The Treasury Securities Money Market Fund seeks to preserve principal value and
maintain a high degree of liquidity while providing current income. The Fund
invests exclusively in U.S. Treasury obligations and repurchase agreements
(repos) involving such obligations.
INVESTMENT REVIEW
We expect that the Federal Reserve will lower short term interest rates over the
next few months as fiscal policy remains restrictive, inflation remains benign,
the consumer feels fully leveraged and over taxed, and capital spending is
expected to moderate. In this environment, we are maintaining a longer average
maturity in the 40 to 55 day range in order to lock in prevailing yields. We
have added longer maturity (out to a maximum of 397 days) Treasury securities
when opportunities arose in order to extend the Fund's maturity. In order to add
incremental yield, we have used Term Repos when the rates offered have been
competitive.
<TABLE>
<S> <C>
U.S. TREASURY OBLIGATIONS 18%
REPURCHASE AGREEMENTS 82%
</TABLE>
as of 10/31/95
================================================================================
October 31, 1995 9
<PAGE> 12
ADVISERS' REVIEW INVENTOR FUNDS
================================================================================
PENNSYLVANIA TAX EXEMPT
MONEY MARKET FUND
Sub-adviser: Weiss, Peck & Greer
Portfolio Manager: Janet A. Fiorenza
INVESTMENT OBJECTIVE
The Pennsylvania Tax Exempt Money Market Fund seeks to provide current income
exempt from regular federal income and Pennsylvania personal income taxes,
consistent with stability of principal as prescribed by the standards set for
the Fund.
INVESTMENT REVIEW
As it became apparent that the economy was slowing and that inflation was
contained, the average weighted maturity of the Fund was extended to
approximately 55 days. At the end of October, over 60% of the Fund was invested
in variable rate demand obligations that have either a daily, weekly, or monthly
rate reset and can be redeemed at par either daily or weekly. In addition, 25%
of the Fund was invested in securities which mature within six months while the
remaining 15% was invested in securities which mature within 397 days. The Fund
continues to be managed with four key objectives in mind: safety, liquidity,
compliance, and performance.
================================================================================
10 October 31, 1995
<PAGE> 13
STATEMENT OF NET ASSETS UNAUDITED INVENTOR FUNDS
================================================================================
<TABLE>
<CAPTION>
MARKET
VALUE
EQUITY GROWTH FUND SHARES (000)
======================================================
<S> <C> <C>
COMMON STOCK (91.4%)
- ------------------------------------------------------
AEROSPACE (3.7%)
Allied Signal 20,900 $ 888
Boeing 3,700 243
Textron 3,800 261
United Technologies 7,400 657
---------------------------------------------------
Total Aerospace 2,049
-------
AUTOMOTIVE (1.3%)
General Motors 10,900 477
Goodyear Tire & Rubber 6,000 228
---------------------------------------------------
Total Automotive 705
-------
BANKS (3.9%)
Bank of Boston 4,000 178
BankAmerica 1,700 98
Chemical Banking 12,300 700
Mellon Bank 14,400 722
Midlantic 5,800 307
Summit Bancorporation
of New Jersey 5,000 142
---------------------------------------------------
Total Banks 2,147
-------
BUILDING (0.8%)
American Standard* 5,700 152
Foster Wheeler 8,100 304
---------------------------------------------------
Total Building 456
-------
CHEMICALS (2.7%)
Air Products & Chemical 8,200 423
E.I. Du Pont de Nemours 14,600 911
Praxair 6,000 162
---------------------------------------------------
Total Chemicals 1,496
-------
ELECTRICAL EQUIPMENT (4.2%)
Emerson Electric 10,900 777
General Electric 16,000 1,011
General Signal 17,500 558
---------------------------------------------------
Total Electrical Equipment 2,346
-------
ENERGY (5.6%)
Amoco 11,700 748
Atlantic Richfield 2,900 310
Chevron 6,400 299
Duracell International 1,300 68
Halliburton 4,800 199
Mobil 5,400 544
Schlumberger 4,600 286
Sonat 900 26
Union Texas Petroleum 11,000 198
Unocal 15,500 407
---------------------------------------------------
Total Energy 3,085
-------
ENVIRONMENTAL SERVICES (3.2%)
Browning Ferris Industries 9,600 280
Molton Metal Technology* 14,000 539
Wheelabrator Technologies 23,000 331
WMX Technologies 21,600 607
---------------------------------------------------
Total Environmental Services 1,757
-------
FINANCIAL SERVICES (1.1%)
Federal Home Loan Mortgage 9,100 630
---------------------------------------------------
Total Financial Services 630
-------
</TABLE>
The accompanying notes are an integral part of the financial statements.
================================================================================
October 31, 1995 11
<PAGE> 14
STATEMENT OF NET ASSETS UNAUDITED INVENTOR FUNDS
================================================================================
<TABLE>
<CAPTION>
MARKET
VALUE
EQUITY GROWTH FUND (cont'd) SHARES (000)
======================================================
<S> <C> <C>
FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD PRODUCTS (9.9%)
Bush Boake Allen* 5,500 $ 151
Coca Cola 7,300 525
CPC International 4,200 279
Gillette 5,700 276
Kellogg 4,100 296
PepsiCo 5,500 290
Philip Morris Companies 14,900 1,257
Procter & Gamble 9,000 729
RJR Nabisco Holdings 5,160 159
Sara Lee 18,200 535
Sunbeam-Oster 15,200 228
Sysco 12,800 389
UST 11,500 345
---------------------------------------------------
Total Food, Beverage,
Tobacco & Household Products 5,459
-------
INSURANCE (5.4%)
American General 7,000 230
American International Group 7,350 620
Chubb 6,800 611
General Re 4,900 710
Travelers 16,000 808
---------------------------------------------------
Total Insurance 2,979
-------
LEISURE (3.3%)
Autotote, Cl A* 16,600 50
Carnival Cruise Lines, Cl A 31,600 734
Disney 6,100 352
Marriott International 6,500 240
Mattel 15,000 431
---------------------------------------------------
Total Leisure 1,807
-------
MEDIA (3.9%)
American Greetings, Cl A 5,000 158
Capital Cities ABC 5,600 664
Tele-Communications, Cl A* 41,100 699
Viacom, Cl B Non-Voting* 13,300 665
---------------------------------------------------
Total Media 2,186
-------
MEDICAL PRODUCTS & SERVICES (12.2%)
Abbott Laboratories 16,400 652
American Home Products 2,000 177
Amgen* 4,100 197
Bristol Myers Squibb 4,700 358
Columbia/HCA Healthcare 22,620 1,111
Fisher Scientific 4,400 138
Healthsouth Rehabilitation* 10,000 261
Johnson & Johnson 7,400 603
Merck 15,900 914
Pfizer 8,500 488
Pharmacia AB ADR 2,400 84
Schering Plough 6,600 354
Smith Kline Beecham PLC 20,000 1,038
Tenet Healthcare* 18,500 331
Warner Lambert 900 77
---------------------------------------------------
Total Medical Products & Services 6,783
-------
METALS & MINING (0.5%)
Alumax* 600 18
Worthington Industries 15,000 249
---------------------------------------------------
Total Metals & Mining 267
-------
MISCELLANEOUS (3.3%)
ITT 8,000 980
Tyco International 13,800 838
---------------------------------------------------
Total Miscellaneous 1,818
-------
</TABLE>
The accompanying notes are an integral part of the financial statements.
================================================================================
12 October 31, 1995
<PAGE> 15
STATEMENT OF NET ASSETS UNAUDITED INVENTOR FUNDS
================================================================================
<TABLE>
<CAPTION>
MARKET
VALUE
EQUITY GROWTH FUND (cont'd) SHARES (000)
======================================================
<S> <C> <C>
PAPER & FOREST PRODUCTS (0.9%)
Georgia Pacific 5,900 $ 487
---------------------------------------------------
Total Paper & Forest Products 487
-------
PAPER & PAPER PRODUCTS (0.5%)
Willamette Industries 4,500 261
---------------------------------------------------
Total Paper & Paper Products 261
-------
RAILROADS (1.0%)
Union Pacific 8,800 575
---------------------------------------------------
Total Railroads 575
-------
RETAIL (8.5%)
Albertson's 6,500 216
American Stores 8,000 239
Federated Department Stores* 29,800 756
Home Depot 27,700 1,032
Intimate Brands, Cl A* 10,500 176
McDonalds 17,500 718
Newell 8,300 200
Office Depot* 12,800 366
Wal-Mart Stores 30,900 668
Wendy's International 18,000 358
---------------------------------------------------
Total Retail 4,729
-------
TECHNOLOGY (13.6%)
AMP 16,800 659
Arrow Electronics* 6,200 315
Bell Howell* 4,500 113
DSC Communications* 900 33
Eastman Kodak 9,700 607
General Motors, Cl E 11,600 547
Intel 12,200 852
International Business Machines 8,400 817
Microsoft* 8,200 820
Motorola 16,400 1,076
</TABLE>
<TABLE>
<CAPTION>
SHARES/ MARKET
FACE AMOUNT VALUE
(000) (000)
======================================================
<S> <C> <C>
Oracle Systems* 14,500 $ 633
Scientific-Atlanta 32,500 402
Xerox 4,900 636
---------------------------------------------------
Total Technology 7,510
--------
TELEPHONES &
TELECOMMUNICATION (1.9%)
AT&T 16,700 1,069
---------------------------------------------------
Total Telephones &
Telecommunication 1,069
--------
- ------------------------------------------------------
TOTAL COMMON STOCK
(Cost $46,003) 50,601
- ------------------------------------------------------
PREFERRED STOCKS (0.3%)
- ------------------------------------------------------
PRINTING & PUBLISHING (0.3%)
Time Warner Financing,
Convertible to 1.0 Shares
of Hasbro 6,000 192
---------------------------------------------------
Total Printing & Publishing 192
--------
- ------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost $186) 192
- ------------------------------------------------------
REPURCHASE AGREEMENT (11.1%)
- ------------------------------------------------------
Paine Webber
5.88%, dated 10/31/95,
matures 11/01/95,
repurchase price $6,163,504
(collateralized by various U.S.
Government mortgage-backed
securities, total par value
$17,930,362, 0.00% - 7.00%:
total market value $6,347,496) 6,162 6,162
- ------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $6,162) 6,162
- ------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
================================================================================
October 31, 1995 13
<PAGE> 16
STATEMENT OF NET ASSETS UNAUDITED INVENTOR FUNDS
================================================================================
<TABLE>
<CAPTION>
MARKET
VALUE
EQUITY GROWTH FUND (cont'd) (000)
======================================================
<S> <C>
TOTAL INVESTMENTS (102.8%)
(Cost $52,351) $ 56,955
- ------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (-2.8%) (1,534)
- ------------------------------------------------------
NET ASSETS:
Portfolio shares of Class A ($.00001
par value - 2 billion authorized)
based on 4,612,149 outstanding
shares of beneficial interest 46,368
Accumulated net realized gain
on investments 4,449
Net unrealized appreciation on investments 4,604
- ------------------------------------------------------
TOTAL NET ASSETS: (100.0%) $ 55,421
- ------------------------------------------------------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE - CLASS A $ 12.02
Maximum Sales Charge of 4.00% 0.50
--------
OFFERING PRICE PER SHARE - CLASS A(+) $ 12.52
========
- ------------------------------------------------------
</TABLE>
- ----------
* Non-income producing security
+ The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 4.00%.
ADR American Depository Receipt
PLC Public Limited Corporation
<TABLE>
<CAPTION>
INTERMEDIATE FACE MARKET
GOVERNMENT AMOUNT VALUE
SECURITIES FUND (000) (000)
- ------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED BONDS (47.0%)
- ------------------------------------------------------
<S> <C> <C>
FHLMC
5.200%, 11/15/99 $ 500 $ 497
5.250%, 09/15/06 798 782
5.750%, 05/15/07 2,243 2,120
7.500%, 08/01/07 10 10
6.000%, 08/15/07 400 391
6.500%, 12/01/09 TBA 1,000 992
9.000%, 07/15/20 108 110
6.000%, 05/15/21 1,000 972
9.250%, 06/01/23 162 169
7.000%, 05/01/24 1,272 1,263
7.000%, 07/01/25 1,984 1,969
6.500%, 09/01/25 696 677
7.000%, 09/01/25 3,977 3,949
7.000%, 10/01/25 1,990 1,976
FHLMC REMIC
8.000%, 11/15/99 2,000 2,089
5.200%, 09/15/05 500 489
8.000%, 01/15/06 500 518
4.750%, 07/25/11 500 489
6.000%, 06/15/19 500 489
8.700%, 02/15/20 500 515
8.500%, 10/15/20 2,000 2,062
FNMA
6.500%, 03/01/14 455 442
7.567%, 11/01/17 ARM 623 640
9.500%, 05/01/18 211 223
FNMA REMIC
7.000%, 01/25/99 1,250 1,266
6.000%, 03/25/07 1,000 977
7.500%, 08/25/07 1,000 1,054
6.500%, 05/25/15 945 949
6.000%, 11/25/17 400 393
6.000%, 11/25/19 500 495
8.125%, 01/25/20 1,086 1,108
8.250%, 10/25/20 168 170
GNMA
6.500%, 11/15/08 187 186
9.500%, 06/15/09 64 68
9.500%, 07/15/09 64 68
</TABLE>
The accompanying notes are an integral part of the financial statements.
================================================================================
14 October 31, 1995
<PAGE> 17
STATEMENT OF NET ASSETS UNAUDITED INVENTOR FUNDS
================================================================================
<TABLE>
<CAPTION>
INTERMEDIATE FACE MARKET
GOVERNMENT AMOUNT VALUE
SECURITIES FUND (cont'd) (000) (000)
- ------------------------------------------------------
<S> <C> <C>
9.500%, 08/15/09 $ 10 $ 11
9.500%, 09/15/09 34 36
9.500%, 10/15/09 137 146
9.000%, 07/15/16 119 125
9.000%, 08/15/16 559 587
9.000%, 10/15/16 207 217
9.000%, 11/15/16 594 625
9.000%, 12/15/16 534 562
9.000%, 03/15/17 694 729
8.000%, 05/15/17 923 951
9.000%, 11/15/17 201 213
9.500%, 06/15/19 425 455
8.500%, 09/15/21 45 47
8.500%, 11/15/21 1,455 1,516
8.500%, 07/15/22 1,323 1,378
7.500%, 08/15/22 25 25
8.500%, 08/15/22 202 210
7.500%, 04/15/23 503 510
7.500%, 05/15/23 493 500
7.000%, 07/20/25 ARM 1,487 1,520
7.500%, 08/15/25 709 719
7.500%, 09/15/25 273 277
7.500%, 10/15/25 995 1,009
- ------------------------------------------------------
TOTAL U.S. GOVERNMENT MORTGAGE-
BACKED BONDS
(Cost $42,379) 42,935
- ------------------------------------------------------
U.S. TREASURY OBLIGATIONS (43.7%)
- ------------------------------------------------------
United States Treasury Bond
12.000%, 08/15/13 6,000 8,995
United States Treasury Notes
8.500%, 07/15/97 1,000 1,046
6.500%, 08/15/97 4,200 4,261
8.875%, 11/15/97 6,200 6,580
5.625%, 01/31/98 5,000 4,996
5.125%, 11/30/98 1,800 1,771
7.000%, 04/15/99 2,000 2,076
10.750%, 02/15/03 8,000 10,242
- ------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $38,780) 39,967
- ------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (6.4%)
- ------------------------------------------------------
FNMA
5.200%, 04/30/98 3,000 2,944
5.390%, 08/05/98 3,000 2,953
- ------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $5,752) 5,897
- ------------------------------------------------------
REPURCHASE AGREEMENT (3.8%)
- ------------------------------------------------------
J.P. Morgan
5.87%, dated 10/31/95,
matures 11/01/95,
repurchase price $3,449,562
(collateralized by U.S. Treasury Note,
par value $3,387,000,
8.50%, matures 11/15/95:
market value $3,520,161) 3,449 3,449
- ------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $3,449) 3,449
- ------------------------------------------------------
TOTAL INVESTMENTS (100.9%)
(Cost $90,360) 92,248
- ------------------------------------------------------
OTHER ASSETS AND LIABILITIES,
NET (-0.9%) (819)
- ------------------------------------------------------
NET ASSETS:
Portfolio shares of Class A
($.00001 par value - 2 billion
authorized) based on 8,865,082
outstanding shares of
beneficial interest 89,133
</TABLE>
The accompanying notes are an integral part of the financial statements.
================================================================================
October 31, 1995 15
<PAGE> 18
STATEMENT OF NET ASSETS UNAUDITED INVENTOR FUNDS
================================================================================
<TABLE>
<CAPTION>
INTERMEDIATE MARKET
GOVERNMENT VALUE
SECURITIES FUND (cont'd) (000)
- ------------------------------------------------------
<S> <C>
Accumulated net realized gain on
investments $ 408
Net unrealized appreciation on
investments 1,888
- ------------------------------------------------------
TOTAL NET ASSETS: (100.0%) $ 91,429
- ------------------------------------------------------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE - CLASS A $ 10.31
Maximum Sales Charge of 4.00% 0.43
--------
Offering Price per Share - Class A(+) $ 10.74
========
- ------------------------------------------------------
</TABLE>
- ----------
+ The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 4.00%.
ARM Adjustable Rate Mortgage
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
GNMA Government National Mortgage Association
REMIC Real Estate Mortgage Investment Conduit
TBA "To Be Announced" Mortgage Backed Security (See Note 2)
<TABLE>
<CAPTION>
FACE MARKET
GNMA AMOUNT VALUE
SECURITIES FUND (000) (000)
- ------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED BONDS (87.8%)
- ------------------------------------------------------
<S> <C> <C>
FHLMC
7.500%, 04/01/00 $ 257 $ 263
7.500%, 10/01/01 79 80
8.000%, 01/15/06 500 518
7.000%, 12/01/09 TBA 1,200 1,210
7.000%, 06/01/23 440 437
7.000%, 03/01/24 223 221
7.000%, 07/01/25 329 327
7.000%, 09/01/25 502 499
FNMA IO
7.000%, 09/25/19 2,444 347
GNMA
7.000%, 10/15/07 339 343
7.000%, 05/15/08 324 328
7.000%, 01/15/09 24 24
7.000%, 02/15/09 171 174
7.000%, 03/15/09 281 284
9.000%, 05/15/09 GPM 982 1,026
6.500%, 06/15/09 49 49
9.000%, 06/15/09 GPM 108 113
9.500%, 07/15/09 206 219
9.500%, 08/15/09 518 550
9.500%, 09/15/09 33 35
9.500%, 10/15/09 6 7
6.500%, 11/01/09 TBA 1,000 997
9.500%, 11/15/09 54 58
10.000%, 11/15/09 383 416
10.000%, 12/15/09 32 35
11.500%, 01/15/13 35 39
11.500%, 02/15/13 71 81
11.500%, 03/15/13 29 33
11.500%, 05/15/13 90 102
7.500%, 06/15/13 314 319
11.500%, 06/15/13 92 104
11.500%, 07/15/13 23 26
11.500%, 08/15/13 12 13
11.500%, 06/15/15 58 65
11.250%, 08/15/15 257 282
11.500%, 10/15/15 44 50
9.500%, 12/15/15 12 13
11.500%, 01/15/16 18 21
9.500%, 03/15/16 172 184
9.000%, 06/15/16 2,336 2,455
9.000%, 07/15/16 18 19
9.500%, 07/15/16 7 7
9.000%, 08/15/16 19 20
9.500%, 08/15/16 171 182
9.000%, 08/20/16 2,300 2,394
</TABLE>
The accompanying notes are an integral part of the financial statements.
================================================================================
16 October 31, 1995
<PAGE> 19
STATEMENT OF NET ASSETS UNAUDITED INVENTOR FUNDS
================================================================================
<TABLE>
<CAPTION>
FACE MARKET
GNMA AMOUNT VALUE
SECURITIES FUND (cont'd) (000) (000)
- ------------------------------------------------------
<S> <C> <C>
10.250%, 08/20/16 GPM $ 31 $ 33
9.000%, 09/15/16 19 20
9.500%, 09/15/16 23 25
9.500%, 10/15/16 19 20
9.500%, 11/15/16 78 84
9.000%, 12/15/16 66 70
8.500%, 01/15/17 166 172
9.500%, 01/15/17 19 20
8.500%, 02/15/17 230 240
9.000%, 02/15/17 16 17
8.000%, 03/15/17 17 17
8.500%, 03/15/17 244 254
8.000%, 04/15/17 118 122
8.500%, 04/15/17 177 184
8.000%, 05/15/17 84 87
8.500%, 05/15/17 175 182
9.500%, 05/15/17 28 30
9.000%, 06/15/17 489 514
8.000%, 07/15/17 106 109
9.500%, 07/15/17 60 64
9.000%, 08/15/17 332 349
9.500%, 08/15/17 183 195
9.500%, 09/15/17 136 145
9.500%, 10/15/17 258 276
8.500%, 11/15/17 633 662
9.500%, 12/15/17 28 30
9.500%, 03/15/18 36 38
10.250%, 03/20/18 GPM 157 168
9.500%, 04/15/18 36 39
9.500%, 06/15/18 88 94
9.500%, 07/15/18 15 16
9.500%, 08/15/18 42 45
9.500%, 09/15/18 12 13
10.250%, 09/20/18 GPM 191 205
9.500%, 10/15/18 22 23
9.500%, 11/15/18 15 16
9.500%, 12/15/18 89 95
9.500%, 01/15/19 40 43
9.500%, 03/15/19 10 11
9.500%, 05/15/19 37 39
9.500%, 07/15/19 12 13
9.500%, 09/15/19 25 27
9.500%, 10/15/19 40 43
9.500%, 12/15/19 29 31
9.500%, 06/15/20 21 22
9.000%, 07/15/20 262 275
9.500%, 07/15/20 32 35
9.500%, 08/15/20 333 356
9.500%, 10/15/20 58 62
9.500%, 11/15/20 271 290
9.500%, 12/15/20 131 140
8.500%, 04/15/21 441 459
8.500%, 05/15/21 43 44
8.500%, 06/15/21 431 449
9.000%, 06/15/21 476 500
8.500%, 07/15/21 77 80
9.500%, 07/15/21 465 497
8.500%, 09/15/21 725 755
8.500%, 10/15/21 96 100
8.500%, 11/15/21 796 829
8.500%, 12/15/21 1,095 1,141
8.500%, 02/15/22 376 392
8.500%, 03/01/22 190 198
8.500%, 03/15/22 264 275
8.500%, 05/15/22 357 372
8.500%, 08/15/22 390 407
8.500%, 09/15/22 539 562
7.000%, 10/15/22 26 26
7.000%, 11/15/22 GPM 469 467
8.500%, 11/15/22 312 325
7.500%, 02/15/23 394 400
7.000%, 04/15/23 29 29
7.500%, 04/15/23 34 34
7.500%, 06/15/23 473 479
</TABLE>
The accompanying notes are an integral part of the financial statements.
================================================================================
October 31, 1995 17
<PAGE> 20
STATEMENT OF NET ASSETS UNAUDITED INVENTOR FUNDS
================================================================================
<TABLE>
<CAPTION>
FACE MARKET
GNMA AMOUNT VALUE
SECURITIES FUND (cont'd) (000) (000)
- ------------------------------------------------------
<S> <C> <C>
7.000%, 07/15/23 $ 497 $ 494
7.500%, 07/15/23 989 1,003
7.000%, 08/15/23 926 921
7.500%, 08/15/23 206 209
6.500%, 09/15/23 147 143
7.000%, 09/15/23 333 331
7.500%, 09/15/23 117 119
6.500%, 10/15/23 409 397
7.000%, 10/15/23 949 944
7.500%, 10/15/23 1,878 1,905
7.000%, 11/15/23 87 87
6.000%, 12/20/23 455 428
7.000%, 01/15/24 695 691
7.500%, 01/15/24 135 137
7.000%, 02/15/24 1,472 1,463
7.000%, 03/15/24 41 41
7.500%, 03/15/24 319 324
7.000%, 05/15/24 660 657
7.500%, 05/15/24 384 389
7.000%, 08/15/25 44 44
7.000%, 09/15/25 1,706 1,696
7.500%, 09/15/25 2,469 2,504
7.500%, 10/15/25 2,713 2,752
- ------------------------------------------------------
TOTAL U.S. GOVERNMENT MORTGAGE-
BACKED BONDS 47,528
(Cost $46,953)
- ------------------------------------------------------
U.S. TREASURY OBLIGATION (10.5%)
- ------------------------------------------------------
United States Treasury Bond
12.000%, 08/15/13 3,800 5,697
- ------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATION
(Cost $5,263) 5,697
- ------------------------------------------------------
REPURCHASE AGREEMENT (3.2%)
- ------------------------------------------------------
Aubrey G. Lanston
5.875%, dated 10/31/95,
matures 11/01/95,
repurchase price $1,739,284
(collateralized by U.S.
Treasury Bill, par value
$1,870,000, matures 10/17/96,
market value $1,773,275) 1,739 1,739
- ------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $1,739) 1,739
- ------------------------------------------------------
TOTAL INVESTMENTS (101.5%)
(Cost $53,955) 54,964
- ------------------------------------------------------
OTHER ASSETS AND LIABILITIES,
NET (-1.5%) (834)
- ------------------------------------------------------
NET ASSETS:
Portfolio shares of Class A
($.00001 par value - 2 billion
authorized) based on 5,175,228
outstanding shares of
beneficial interest 52,052
Accumulated net realized
gain on investments 1,074
Net unrealized appreciation
on investments 1,009
Distributions in excess of net
investment income (5)
- ------------------------------------------------------
TOTAL NET ASSETS: (100.0%) $54,130
- ------------------------------------------------------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE - CLASS A $ 10.46
Maximum Sales Charge of 4.00% 0.44
----
OFFERING PRICE PER SHARE - CLASS A(+) $ 10.90
-------
- ------------------------------------------------------
</TABLE>
- ----------
+ The offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 4.00%.
FHLMC Federal Home Loan Mortgage Association
FNMA Federal National Mortgage Association
GNMA Government National Mortgage Association
GPM Graduated Payment Mortgage
IO Interest Only
TBA "To Be Announced" Mortgage Backed Security (See Note 2)
The accompanying notes are an integral part of the financial statements.
================================================================================
18 October 31, 1995
<PAGE> 21
STATEMENT OF NET ASSETS UNAUDITED INVENTOR FUNDS
================================================================================
<TABLE>
<CAPTION>
FACE MARKET
PENNSYLVANIA AMOUNT VALUE
MUNICIPAL BOND FUND (000) (000)
========================================================
MUNICIPAL BONDS (99.0%)
- --------------------------------------------------------
<S> <C> <C>
PENNSYLVANIA (99.0%)
Allegheny County, Pennsylvania
Children's Hospital of Pittsburgh,
Ser 85B, MBIA, RB
3.900%, 11/07/95 (A) $ 200 $ 200
Allegheny County, Pennsylvania
Hospital Development Authority
Magee Woman's Hospital
Project, Ser O, RB
10.125%, 10/01/02 125 153
Bradford, Pennsylvania
School District, FGIC, GO
5.250%, 10/01/07 1,000 1,006
Bucks County, Pennsylvania
Middletown Township Special
Obligation, Escrowed to Maturity
6.100%, 10/01/00 385 411
Butler County, Pennsylvania
Sewer Authority, RB,
Prerefunded 01/01/04 at 100
7.250%, 07/01/12 100 111
Danville, Pennsylvania
School District, MBIA, GO
6.650%, 05/01/04 100 101
Dauphin County, Pennsylvania
General Authority Health
Center, RB
5.150%, 01/01/97 1,000 1,005
Delaware County, Pennsylvania
Industrial Development Authority
Airport Facilities United Parcel
Services Project, Ser 85, RB
3.800%, 11/07/95 (A) 300 300
Delaware County, Pennsylvania
Industrial Development Authority
BP Exploration & Oil Project, RB
4.000%, 11/07/95 (A) 100 100
Delaware County, Pennsylvania, GO
4.500%, 10/01/01 500 504
Delaware River, Pennsylvania
Port Authority PA & NJ
bridges, AMBAC, RB
7.375%, 01/01/07 1,500 1,665
Elizabeth Forward, Pennsylvania
School District, MBIA, GO,
Prerefunded 05/01/96 at 100
8.000%, 05/01/02 1,000 1,020
Erie County, Pennsylvania
Prison Authority, MBIA, RB,
Prerefunded 11/01/01 at 100
6.600%, 11/01/02 1,000 1,106
Hampton Township, Pennsylvania
School District, Ser A, FGIC, GO,
Prerefunded 02/15/01 at 100
6.900%, 02/15/10 1,000 1,109
Langhorne, Pennsylvania
Saint Mary's Hospital Authority
Franciscan Health Systems,
Ser C, RB
3.800%, 11/07/95 (A) (B) 800 800
Lehigh County, Pennsylvania,
Ser A, AMBAC, GO,
Prerefunded 10/15/99 at 100
6.000%, 10/15/11 1,250 1,323
Monroeville, Pennsylvania Hospital
Authority East Suburban
Health Center Project, RB,
Prerefunded 07/01/04 at 100
7.600%, 07/01/08 780 902
</TABLE>
The accompanying notes are an integral part of the financial statements.
================================================================================
October 31, 1995 19
<PAGE> 22
STAEMENT OF NET ASSETS UNAUDITED INVENTOR FUNDS
================================================================================
<TABLE>
<CAPTION>
FACE MARKET
PENNSYLVANIA AMOUNT VALUE
MUNICIPAL BOND FUND (cont'd) (000) (000)
========================================================
<S> <C> <C>
Montgomery County, Pennsylvania
Hospital Authority Suburban
General Hospital Project, RB
7.750%, 05/01/02 $ 100 $ 112
Mount Lebanon, Pennsylvania
Hospital Authority, FGIC, RB,
Prerefunded 01/01/96 at 102
9.125%, 07/01/06 1,500 1,542
Northampton County, Pennsylvania
Higher Education Authority
Lehigh University Project, RB
5.500%, 09/01/98 1,030 1,063
Pennsylvania Infrastructure
Investment Authority Pennvest,
Ser 94, RB
3.900%, 11/07/95 (A) (B) 100 100
Pennsylvania Infrastructure
Investment Authority Pennvest,
Subser B, RB
6.450%, 09/01/04 1,500 1,665
Pennsylvania State Certificates
of Participation
4.000%, 12/01/95 450 450
Pennsylvania State Higher
Educational Facilities Authority
University of Pennsylvania Project,
Ser A, RB
6.500%, 09/01/04 250 281
5.550%, 09/01/09 1,300 1,326
Pennsylvania State Intergovern-
mental Co-op Authority
Special Tax City of Philadelphia
Funding Project, RB,
Prerefunded 06/15/02 at 100
6.800%, 06/15/22 1,500 1,684
Pennsylvania State Turnpike
Commission, Ser D, FGIC, RB,
Escrowed to Maturity
6.700%, 12/01/97 1,100 1,165
Pennsylvania State Turnpike
Commission, Ser K, RB,
Escrowed to Maturity
7.250%, 12/01/99 1,230 1,362
Pennsylvania State Turnpike
Commission, Ser O, FGIC, RB
5.250%, 12/01/01 1,010 1,049
Pennsylvania State, Ser 1, GO
6.200%, 09/15/04 900 974
Pennsylvania State, Ser 2, GO
4.750%, 06/15/98 565 571
Philadelphia, Pennsylvania Gas
Works, Ser 13, RB,
Prerefunded 06/15/01 at 102
7.700%, 06/15/11 460 538
Philadelphia, Pennsylvania Gas
Works, Ser 14, RB
6.250%, 07/01/08 300 319
Philadelphia, Pennsylvania
Graduate Hospital Project, RB
7.000%, 07/01/10 290 324
Philadelphia, Pennsylvania
Hospital & Higher Educational
Facilities Authority Children's
Hospital Project, Ser A, RB,
Prerefunded 07/01/97 at 100
7.000%, 07/01/15 1,000 1,046
Philadelphia, Pennsylvania
Hospital & Higher Educational
Facilities Authority Children's
Hospital Project, Ser A, RB,
Prerefunded 02/15/02 at 102
6.500%, 02/15/21 200 223
</TABLE>
The accompanying notes are an integral part of the financial statements.
================================================================================
20 October 31, 1995
<PAGE> 23
STATEMENT OF NET ASSETS UNAUDITED INVENTOR FUNDS
================================================================================
<TABLE>
<CAPTION>
FACE MARKET
PENNSYLVANIA AMOUNT VALUE
MUNICIPAL BOND FUND (cont'd) (000) (000)
=========================================================
<S> <C> <C>
Philadelphia, Pennsylvania Water
& Waste Authority, MBIA, RB
5.500%, 06/15/07 $ 1,500 $ 1,556
Pittsburgh & Allegheny County,
Pennsylvania Auditorium
Authority, RB
6.400%, 12/01/01 800 801
Pittsburgh, Pennsylvania Water
& Sewer Authority, Ser A,
FGIC, RB, Escrowed to Maturity
6.000%, 09/01/97 1,000 1,036
Pittsburgh, Pennsylvania,
Ser A, MBIA, GO
5.500%, 09/01/06 955 991
Schuylkill County, Pennsylvania
Industrial Development Authority
Northeastern Power Project, RB
4.000%, 11/07/95 (A) (B) 300 300
Schuylkill County, Pennsylvania
Industrial Development Authority
Westwood Energy Project, RB
4.200%, 11/07/95 (A) (B) 200 200
Scranton-Lackawanna, Pennsylvania
Health & Welfare Authority, RB,
Escrowed to Maturity
6.625%, 07/01/09 570 630
Seneca Valley, Pennsylvania School
District, Ser A, FGIC, GO
5.700%, 07/01/06 1,000 1,038
Southeastern Pennsylvania
Transportation Authority Lease
Project, RB
5.750%, 12/01/04 775 776
Swarthmore Borough, Pennsylvania
College Authority, RB
6.000%, 09/15/06 855 917
Tyrone, Pennsylvania School
District, MBIA, GO
5.700%, 09/15/08 1,250 1,269
Union City, Pennsylvania Higher
Educational Facilities Financing
Authority Bucknell University
Project, MBIA, RB
6.200%, 04/01/06 1,000 1,061
- ---------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $37,226) 38,185
- ---------------------------------------------------------
TOTAL INVESTMENTS (99.0%)
(Cost $37,226) 38,185
- ---------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (1.0%) 371
- ---------------------------------------------------------
NET ASSETS:
Portfolio shares of Class A
($.00001 par value -- 2 billion
authorized) based on 3,762,329
outstanding shares of beneficial
interest 37,596
Net unrealized appreciation
on investments 959
Undistributed net
investment income 1
- ---------------------------------------------------------
TOTAL NET ASSETS: (100.0%) $38,556
- ---------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
================================================================================
October 31, 1995 21
<PAGE> 24
STATEMENT OF NET ASSETS UNAUDITED INVENTOR FUNDS
================================================================================
<TABLE>
<CAPTION>
MARKET
PENNSYLVANIA VALUE
MUNICIPAL BOND FUND (cont'd) (000)
======================================================
<S> <C>
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $10.25
Maximum Sales Charge of 4.00% 0.43
------
OFFERING PRICE PER SHARE -- CLASS A(+) $10.68
- ------------------------------------------------------
</TABLE>
- ----------------
+ This offering price is calculated by dividing the net asset value by 1 minus
the maximum sales charge of 4.00%.
(A) Floating Rate Instrument with Demand Features. Rate reflected on the
Statement of Net Assets is the rate in effect on October 31, 1995. The
date shown is the longer of the reset date or the demand date.
(B) Security is backed by a letter of credit.
AMBAC American Municipal Bond Assurance Company
FGIC Financial Guaranty Insurance Company
GO General Obligation
MBIA Municipal Bond Insurance Association
RB Revenue Bond
<TABLE>
<CAPTION>
FACE
PRIME OBLIGATIONS AMOUNT VALUE
MONEY MARKET FUND (000) (000)
- ------------------------------------------------------
COMMERCIAL PAPER (80.7%)
- ------------------------------------------------------
<S> <C> <C>
American Express Credit
5.700%, 12/11/95 $5,000 $4,968
5.640%, 03/13/96 5,000 4,896
American General Finance
5.690%, 01/30/96 3,000 2,957
5.650%, 02/09/96 5,000 4,922
American Home Products
5.740%, 11/09/95 3,000 2,996
5.720%, 01/30/96 5,000 4,929
5.720%, 02/09/96 1,000 984
Associates Corporation
of North America
5.710%, 11/15/95 4,000 3,991
5.680%, 02/12/96 5,000 4,919
Avco Financial Services
5.730%, 11/16/95 5,000 4,988
5.750%, 01/25/96 4,000 3,946
Bear Stearns Companies
5.700%, 11/13/95 3,000 2,994
5.720%, 11/20/95 5,000 4,985
Beneficial
5.650%, 12/12/95 8,000 7,949
Chase Manhattan
5.720%, 11/17/95 8,000 7,980
CIESCO
5.650%, 11/22/95 6,450 6,429
5.630%, 02/29/96 4,000 3,925
CIT Group Holdings
5.680%, 12/06/95 4,000 3,978
5.650%, 02/12/96 2,000 1,968
Clipper Receivables
5.750%, 11/06/95 5,000 4,996
Coca-Cola Enterprises
5.900%, 11/03/95 3,500 3,499
5.750%, 12/13/95 4,000 3,973
CSW Credit
5.710%, 11/15/95 3,000 2,993
Delaware Funding
5.660%, 11/20/95 5,056 5,041
Ford Motor Credit
5.700%, 11/20/95 8,000 7,976
5.680%, 02/09/96 2,000 1,968
General Electric Capital
5.590%, 03/01/96 4,000 3,925
General Motors Acceptance
5.760%, 01/23/96 5,000 4,934
5.750%, 02/16/96 4,000 3,932
Household Finance
5.700%, 01/31/96 8,000 7,885
ITT Hartford Group
5.660%, 12/06/95 2,699 2,684
</TABLE>
The accompanying notes are an integral part of the financial statements.
================================================================================
22 October 31, 1995
<PAGE> 25
STATEMENT OF NET ASSETS UNAUDITED INVENTOR FUNDS
================================================================================
<TABLE>
<CAPTION>
FACE
PRIME OBLIGATIONS AMOUNT VALUE
MONEY MARKET FUND (cont'd) (000) (000)
- ------------------------------------------------------
<S> <C> <C>
John Deere Capital
5.680%, 11/21/95 $8,000 $ 7,975
Merrill Lynch
5.700%, 11/16/95 8,000 7,979
National Fuel Gas
5.770%, 01/22/96 5,000 4,934
Nationsbanc
5.635%, 04/03/96 4,000 3,904
New Center Asset Trust
5.780%, 11/30/95 4,000 3,981
Norwest Corporation
5.660%, 11/20/95 5,000 4,985
5.690%, 11/30/95 2,000 1,991
Philip Morris
5.730%, 11/09/95 5,000 4,994
PNC Funding
5.770%, 02/05/96 8,000 7,877
Preferred Receivables Funding
5.750%, 11/29/95 2,815 2,802
5.730%, 01/25/96 5,000 4,932
Prudential Funding
5.720%, 11/14/95 3,000 2,994
5.680%, 11/15/95 5,000 4,989
Puerto Rico Government
Development Bank
5.700%, 11/16/95 5,000 4,988
Riverwood Funding
5.730%, 11/07/95 5,000 4,995
5.730%, 11/14/95 3,495 3,488
Sears Roebuck Acceptance
5.720%, 11/10/95 4,000 3,994
5.700%, 02/13/96 2,000 1,967
Warner-Lambert
5.670%, 12/07/95 3,500 3,480
- ------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost $225,759) 225,759
- ------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATION (0.2%)
- ------------------------------------------------------
FNMA
5.945%, 11/13/95 665 664
- ------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATION (Cost $664) 664
- ------------------------------------------------------
FLOATING RATE INSTRUMENTS (7.5%)
- ------------------------------------------------------
Corestates Capital
5.850%, 01/05/96 (A) 3,000 3,000
First Bank of South Dakota
5.855%, 05/06/96 (A) 6,000 5,999
SMM Trust, 1995-I
5.856%, 05/29/96 (A) 9,000 8,999
South Trust Bank of Alabama
5.855%, 04/19/96 (A) 3,000 3,000
- ------------------------------------------------------
TOTAL FLOATING RATE INSTRUMENTS
(Cost $20,998) 20,998
- ------------------------------------------------------
BANK NOTES (3.6%)
- ------------------------------------------------------
First National Bank, Chicago
6.150%, 08/26/96 5,000 5,000
Nationsbank of Texas
6.150%, 08/28/96 5,000 5,000
- ------------------------------------------------------
TOTAL BANK NOTES
(Cost $10,000) 10,000
- ------------------------------------------------------
CERTIFICATES OF DEPOSIT (2.7%)
- ------------------------------------------------------
Chase Manhattan
5.770%, 04/15/96 2,000 2,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
================================================================================
October 31, 1995 23
<PAGE> 26
STATEMENT OF NET ASSETS UNAUDITED INVENTOR FUNDS
================================================================================
<TABLE>
<CAPTION>
FACE
PRIME OBLIGATIONS AMOUNT VALUE
MONEY MARKET FUND (cont'd) (000) (000)
- -------------------------------------------------------
<S> <C> <C>
First National Bank, Maryland
5.740%, 02/05/96 $3,000 $ 3,000
Society National Bank
6.000%, 04/25/96 2,500 2,502
- -------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $7,502) 7,502
- -------------------------------------------------------
BANKERS ACCEPTANCES (2.5%)
- -------------------------------------------------------
Corestates Bank
5.560%, 03/04/96 2,000 1,962
State Street Bank
5.680%, 11/17/95 5,147 5,134
- -------------------------------------------------------
TOTAL BANKERS ACCEPTANCES
(Cost $7,096) 7,096
- -------------------------------------------------------
REPURCHASE AGREEMENT (3.2%)
- -------------------------------------------------------
Lehman Brothers
5.860%, dated 10/31/95,
matures 11/01/95,
repurchase price $8,879,445
(collateralized by U.S.
Treasury Note, par value
$8,885,000, 6.625%,
matures 03/31/97:
market value $9,050,084) 8,878 8,878
- -------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $8,878) 8,878
- -------------------------------------------------------
TOTAL INVESTMENTS (100.4%)
(Cost $280,897) 280,897
- -------------------------------------------------------
OTHER ASSETS AND LIABILITIES,
NET(-0.4%) (1,201)
- -------------------------------------------------------
NET ASSETS:
Portfolio shares of Class A
($.00001 par value -- 2
billion authorized) based
on 279,698,405 outstanding
shares of beneficial
interest 279,698
Accumulated net realized
loss on investments (2)
- -------------------------------------------------------
TOTAL NET ASSETS: (100.0%) $279,696
- -------------------------------------------------------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
SHARE -- CLASS A $ 1.00
- -------------------------------------------------------
</TABLE>
- ------------
(A) Floating Rate Instrument. The rate reflected on the Statement of Net
Assets is the rate in effect on October 31, 1995. The date shown is the
longer of the reset date or the demand date.
FNMA Federal National Mortgage Association
<TABLE>
<CAPTION>
FACE
TREASURY SECURITIES AMOUNT VALUE
MONEY MARKET FUND (000) (000)
- -------------------------------------------------------
U.S. TREASURY OBLIGATIONS (17.6%)
- -------------------------------------------------------
<S> <C> <C>
United States Treasury Bills
5.876%, 05/30/96 $ 7,000 $ 6,773
5.877%, 05/30/96 12,000 11,610
United States Treasury Note
4.375%, 08/15/96 5,000 4,947
- -------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $23,330) 23,330
- -------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
================================================================================
24 October 31, 1995
<PAGE> 27
STATEMENT OF NET ASSETS UNAUDITED INVENTOR FUNDS
================================================================================
<TABLE>
<CAPTION>
FACE
TREASURY SECURITIES AMOUNT VALUE
MONEY MARKET FUND (cont'd) (000) (000)
- -------------------------------------------------------
REPURCHASE AGREEMENTS (82.8%)
- -------------------------------------------------------
<S> <C> <C>
Aubrey G. Lanston
5.875%, dated 10/31/95,
matures 11/01/95, repurchase
price $11,554,885
(collateralized by U.S.
Treasury Bill, par value
$12,420,000, matures
10/17/96: market
value $11,783,654) $11,553 $ 11,553
Donaldson, Lufkin & Jenrette
Securities 5.890%, dated
10/31/95, matures 11/01/95,
repurchase price $25,004,090
(collateralized by U.S.
Treasury Note, par value
$25,186,000, 6.50%, matures
04/30/97: market
value $25,500,825) (A) 25,000 25,000
J.P. Morgan
5.870%, dated 10/31/95,
matures 11/01/95, repurchase
price $11,501,875
(collateralized by U.S
Treasury Note, par value
$7,946,000, 12.00%, matures
05/15/05: market value
$11,741,079) 11,500 11,500
Lehman Brothers
5.860%, dated 10/31/95,
matures 11/01/95, repurchase
price $11,501,872
(collateralized by various
U.S. Treasury Notes, total
par value $11,400,000, 7.875%
- 8.50%, 11/15/95 - 02/15/96:
total market value $11,730,088) 11,500 11,500
Nomura Securities
5.900%, dated 10/31/95,
matures 11/01/95, repurchase
price $25,004,097
(collateralized by U.S.
Treasury Note, par value
$25,028,000, 6.125%, matures
07/31/96: market value
$25,500,931) (A) 25,000 25,000
Union Bank of Switzerland
5.900%, dated 10/31/95,
matures 11/01/95, repurchase
price $25,004,097
(collateralized by U.S.
Treasury pNote, ar value
$24,825,000, 6.875%, matures
02/28/97: market value
$25,500,612) (A) 25,000 25,000
- -------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $109,553) 109,553
- -------------------------------------------------------
TOTAL INVESTMENTS (100.4%)
(Cost $132,883) 132,883
- -------------------------------------------------------
OTHER ASSETS AND
LIABILITIES, NET (-0.4%) (540)
- -------------------------------------------------------
NET ASSETS:
Portfolio shares of Class A
($.00001 par value - 2
billion authorized) based on
132,326,052 outstanding
shares of beneficial
interest 132,326
Accumulated net realized gain
on investments 17
- -------------------------------------------------------
TOTAL NET ASSETS: (100.0%) $132,343
- -------------------------------------------------------
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SHARE - CLASS A $ 1.00
- -------------------------------------------------------
</TABLE>
- -----------
(A) Tri-party repurchase agreement
The accompanying notes are an integral part of the financial statements.
================================================================================
October 31, 1995 25
<PAGE> 28
STATEMENT OF NET ASSETS UNAUDITED INVENTOR FUNDS
================================================================================
<TABLE>
<CAPTION>
FACE
PENNSYLVANIA TAX-EXEMPT AMOUNT VALUE
MONEY MARKET FUND (000) (000)
- --------------------------------------------------------
MUNICIPAL BONDS (100.2%)
- --------------------------------------------------------
<S> <C> <C>
PENNSYLVANIA (100.2%)
Allegheny County, Pennsylvania
Higher Education Building
Authority University of
Pittsburgh Project, Ser 85B,
RB 3.850%, 11/07/95 (A) (C) $ 650 $ 650
Allegheny County, Pennsylvania
Hospital Development Authority
Children's Hospital Project,
Ser B, MBIA, RB
3.900%, 11/07/95 (A) 1,300 1,300
Allegheny County, Pennsylvania,
Ser C-41, GO
3.850%, 11/07/95 (A) (C) 900 900
Allegheny County, Pennsylvania,
Ser C-44, FGIC, GO
4.000%, 06/01/96 685 685
Beaver County, Pennsylvania
Industrial Development
Authority Duquesne Light &
Power Project, TECP
3.700%, 12/08/95 (C) 1,500 1,500
Beaver County, Pennsylvania
Industrial Development
Authority Duquesne Light
Project, Ser C, TECP
3.750%, 12/14/95 (C) 1,500 1,500
Berks County, Pennsylvania
Industrial Development
Authority Elf Aquitaine, RB
4.075%, 11/07/95 (A) (C) 2,400 2,400
Bethlehem, Pennsylvania School
District, RB
6.150%, 11/01/95 (B) 355 355
Bucks County, Pennsylvania
Industrial Development
Authority CPC International
Project, Ser 85, RB
4.550%, 11/07/95 (A) 2,000 2,000
Bucks County, Pennsylvania
Industrial Development
Authority Edge Comb Metals
Project, RB
4.075%, 11/07/95 (A) (C) 1,830 1,830
Bucks County, Pennsylvania Water
& Sewer Authority Neshaminy
Interceptor Sewer System
Project, RB, Prerefunded at
100 7.700%, 12/01/95 (B) 400 401
Bucks County, Pennsylvania Water
& Sewer Authority Neshaminy
Sewer System Project, RB,
Prerefunded at 100
7.600%, 12/01/95 (B) 500 501
Chartiers Valley, Pennsylvania
Industrial Development
Authority Sycamore Creek
Project, RB
3.900%, 03/01/96 (A) (C) 1,805 1,805
Cumberland County, Pennsylvania
United Methodist Homes
Project, RB
3.950%, 07/01/96 (C) 500 500
</TABLE>
The accompanying notes are an integral part of the financial statements.
================================================================================
26 October 31, 1995
<PAGE> 29
STATEMENT OF NET ASSETS UNAUDITED INVENTOR FUNDS
================================================================================
<TABLE>
<CAPTION>
FACE
PENNSYLVANIA TAX-EXEMPT AMOUNT VALUE
MONEY MARKET FUND (cont'd) (000) (000)
- --------------------------------------------------------
<S> <C> <C>
Delaware County, Pennsylvania
Industrial Development
Authority Airport Facilities
United Parcel Services
Project, Ser 85, RB
3.800%, 11/01/95 (A) $1,300 $1,300
Delaware County, Pennsylvania
Industrial Development
Authority Henderson Radner
Joint Venture Project, RB
4.200%, 11/07/95 (C) 1,150 1,150
Delaware County, Pennsylvania
Philadelphia Industrial
Development Authority Electric
Company Project, FGIC, TECP
3.600%, 11/29/95 (C) 700 700
Delaware Valley, Pennsylvania
Regional Finance Authority
4.050%, 11/07/95 (A) (C) 2,200 2,200
Delaware Valley, Pennsylvania
Regional Finance Authority
Local Government, Ser D, RB
4.050%, 11/07/95 (A) (C) 800 800
Erie County, Pennsylvania Hospital
Authority Union City Memorial
Hospital Project, RB
4.150%, 11/07/95 (A) (C) 1,100 1,100
Lancaster, Pennsylvania Higher
Education Authority Franklin
& Marshall Project, RB
3.950%, 11/07/95 (A) 1,650 1,650
Langhorne, Pennsylvania Saint
Mary's Hospital Authority
Franciscan Health Systems,
Ser C, RB 3.800%,
11/07/95 (A) (C) 1,200 1,200
Lehigh County, Pennsylvania Sewer
Authority, Ser B, FGIC, RB
3.850%, 11/07/95 (A) 480 480
Montgomery County, Pennsylvania
Higher Education & Health
Authority Hospital Revenue,
AMBAC, RB 3.850%, 11/07/95 (A) 2,200 2,200
Montgomery County, Pennsylvania
Higher Education & Health
Authority United Hospitals
Project, Ser A, RB,
Prerefunded at 102
10.000%, 11/01/95 (B) 990 1,010
Montgomery County, Pennsylvania
Higher Education & Health
Authority United Hospitals
Project, Ser B, RB,
Prerefunded at 102
9.750%, 11/01/95 (B) 230 235
Montgomery County, Pennsylvania
Hospital Authority Abington
Memorial Hospital, RB,
Prerefunded at 103
8.000%, 06/01/96 (B) 2,300 2,418
Montgomery County, Pennsylvania
Industrial Development
Authority Ikea Property
Project, RB 4.000%,
11/07/95 (A) (C) 1,500 1,500
Montgomery County, Pennsylvania
Industrial Development
Authority Merck & Company, RB
4.450%, 11/07/95 (A) 1,000 1,000
Montgomery County Pennsylvania
Industrial Development
Authority Valley Square
Project, RB 3.950%,
11/07/95 (C) 1,400 1,400
</TABLE>
The accompanying notes are an integral part of the financial statements.
================================================================================
October 31, 1995 27
<PAGE> 30
STATEMENT OF NET ASSETS UNAUDITED INVENTOR FUNDS
================================================================================
<TABLE>
<CAPTION>
FACE
PENNSYLVANIA TAX-EXEMPT AMOUNT VALUE
MONEY MARKET FUND (cont'd) (000) (000)
- --------------------------------------------------------
<S> <C> <C>
Montgomery County, Pennsylvania
Philadelphia Electric Company
Project, TECP
3.750%, 11/21/95 (C) $ 500 $ 500
Moon Township, Pennsylvania
Industrial Development
Authority Executive Office
Project, RB
4.000%, 11/07/95 (A) (C) 1,500 1,500
Northumberland County,
Pennsylvania Industrial
Development Authority Atlas
Development Project, RB
4.000%, 11/07/95 (A) (C) 840 840
Pennsylvania Infrastructure
Investment Authority Pennvest,
Ser 94, RB
3.900%, 11/07/95 (A) (C) 600 600
Pennsylvania Intergovernmental
Co-op Authority Special Tax
Revenue City of Philadelphia
Funding Project, FGIC, RB
5.200%, 06/15/96 300 302
Pennsylvania State Higher
Education Facilities Authority
Thomas Jefferson University
Project, RB
3.900%, 02/26/96 (A) (C) 1,500 1,500
Pennsylvania State Public School
Building Authority Hazleton
Area School District Project,
RB 5.250%, 03/01/96 1,000 1,005
Pennsylvania State University
Project, Ser A
5.500%, 12/21/95 1,800 1,801
Pennsylvania State, Ser 2, GO,
Prerefunded at 101.50
7.250%, 05/01/96 (B) 250 257
Philadelphia, Pennsylvania Hospital
& Higher Educational
Facilities Authority, RB,
Prerefunded at 102
8.625%, 08/01/96 (B) 1,500 1,581
Philadelphia, Pennsylvania
Industrial Development
Authority Multi-Family Housing
Harbor View Towers Project, RB
4.000%, 11/07/95 (A) (C) 1,900 1,900
Philadelphia, Pennsylvania
Redevelopment Authority Penn
School for the Deaf Project,
RB 3.900%, 11/07/95 (C) 2,405 2,405
Philadelphia, Pennsylvania School
District, GO, TRAN
4.500%, 06/28/96 2,000 2,007
Philadelphia, Pennsylvania School
District, MBIA, GO,
Prerefunded at 100.50
7.400%, 11/01/95 (B) 150 151
Philadelphia, Pennsylvania
Updates, GO ,TECP
3.800%, 11/21/95 (C) 1,800 1,800
Philadelphia, Pennsylvania Water
& Sewer Authority, Ser 12,
MBIA, RB, Prerefunded at 101
7.250%, 07/01/96 (B) 200 206
Philadelphia, Pennsylvania Water
And Sewer Authority, Ser 11,
RB, Prerefunded at 102
8.800%, 12/01/95 (B) 110 113
Philadelphia, Pennsylvania,
Ser A, GO, TRAN
4.500%, 06/27/96 1,000 1,003
</TABLE>
The accompanying notes are an integral part of the financial statements.
================================================================================
28 October 31, 1995
<PAGE> 31
STATEMENT OF NET ASSETS UNAUDITED INVENTOR FUNDS
================================================================================
<TABLE>
<CAPTION>
FACE
PENNSYLVANIA TAX-EXEMPT AMOUNT VALUE
MONEY MARKET FUND (cont'd) (000) (000)
- --------------------------------------------------------
<S> <C> <C>
Pittsburgh, Pennsylvania
Equipment Leasing Authority,
AMBAC, RB
5.950%, 07/01/96 $ 300 $ 304
Pittsburgh, Pennsylvania Public
Parking Authority, RB,
Prerefunded at 102
9.500%, 12/01/95 (B) 150 154
Quakertown, Pennsylvania
Hospital Authority Group
Pooled Financing, RB
3.750%, 11/07/95 (A) (C) 1,800 1,800
Rose Tree Media, Pennsylvania
School District, Ser A, FGIC,
GO 5.150%, 03/15/96 500 503
Sayre, Pennsylvania Health Care
Facilities Authority Capital
Financing Project, Ser F,
AMBAC, RB
3.850%, 11/07/95 (A) 1,300 1,300
Schuylkill County, Pennsylvania
Industrial Development
Authority Gilberton Power
Project, RB
4.000%, 11/07/95 (A) (C) 1,000 1,000
Schuylkill County, Pennsylvania
Industrial Development
Authority Westwood Energy
Project, RB
4.200%, 11/01/95 (A) (C) 91 91
Wyoming Valley, Pennsylvania
Sanitation Authority, Ser 85,
RB, Prerefunded at 101
9.200%, 11/15/95 (B) 150 152
York County, Pennsylvania
Industrial Development
Authority Edgecomb Corporate
Project, Ser 84, RB
4.075%, 11/07/95 (A) (C) 850 850
- --------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $62,295) 62,295
- --------------------------------------------------------
TOTAL INVESTMENTS (100.2%)
(Cost $62,295) 62,295
- --------------------------------------------------------
OTHER ASSETS AND
LIABILITIES, NET (-0.2%) (138)
- --------------------------------------------------------
NET ASSETS:
Portfolio shares of Class A
($.00001 par value - 2 billion
authorized) based on
62,157,108 outstanding shares
of beneficial interest 62,157
- --------------------------------------------------------
TOTAL NET ASSETS: (100.0%) $62,157
- --------------------------------------------------------
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE -- CLASS A $ 1.00
- --------------------------------------------------------
</TABLE>
- -----------
(A) Floating Rate Instrument with Demand Features. The rate reflected on
the Statement of Net Assets is the rate in effect on October 31, 1995.
The date shown is the longer of the reset date or the demand date.
(B) Prerefunded Security - the maturity date shown is the prerefunded date.
(C) Security is backed by a letter of credit.
AMBAC American Municipal Bond Assurance Company
FGIC Financial Guaranty Insurance Company
GO General Obligation
MBIA Municipal Bond Insurance Association
RB Revenue Bond
TECP Tax Exempt Commercial Paper
TRAN Tax And Revenue Anticipation Note
The accompanying notes are an integral part of the financial statements.
================================================================================
October 31, 1995 29
<PAGE> 32
STATEMENTS OF OPERATIONS INVENTOR FUNDS
================================================================================
For the period ended October 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
EQUITY INTERMEDIATE
GROWTH GOVERNMENT
FUND SECURITIES FUND
(000) (000)
================================================================================================
<S> <C> <C>
INVESTMENT INCOME:
Dividends .................................................... $ 448 $ --
Interest ..................................................... 143 2,968
------- -------
Total investment income ................................... 591 2,968
------- -------
EXPENSES:
Investment advisory fees ..................................... 220 295
12b-1 fees ................................................... 65 105
Administrative fees .......................................... 46 76
Transfer agent fees & expenses ............................... 12 14
Registration & filing fees ................................... 1 12
Custody fees ................................................. 12 9
Trustee fees ................................................. 1 2
Miscellaneous fees ........................................... 12 20
------- -------
Total expenses ............................................ 369 533
Less: Expenses waived ..................................... (124) (175)
------- -------
Total net expenses ........................................ 245 358
------- -------
NET INVESTMENT INCOME ........................................... 346 2,610
------- -------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gain (loss) on investments ......................... 3,978 770
Net change in unrealized appreciation of investments ............ 1,856 1,256
------- -------
Net realized and unrealized gain (loss) on investments .... 5,834 2,026
------- -------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ............ $ 6,180 $ 4,636
======= =======
</TABLE>
The accompanying notes are an integral part of the financial statements.
================================================================================
30 October 31, 1995
<PAGE> 33
STATEMENTS OF OPERATIONS INVENTOR FUNDS
================================================================================
<TABLE>
<CAPTION>
PRIME TREASURY PENNSYLVANIA
GNMA PENNSYLVANIA OBLIGATIONS SECURITIES TAX-EXEMPT
SECURITIES MUNICIPAL BOND MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND FUND FUND
(000) (000) (000) (000) (000)
==========================================================================================================================
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends ........................ $ -- $ -- $ -- $ -- $ --
Interest ......................... 1,844 911 8,435 3,344 1,249
------ ------ ------ ------ ------
Total investment income ....... 1,844 911 8,435 3,344 1,249
------ ------ ------ ------ ------
EXPENSES:
Investment advisory fees ......... 176 129 633 253 141
12b-1 fees ....................... 63 46 351 141 78
Administrative fees .............. 45 34 211 85 47
Transfer agent fees & expenses ... 12 9 30 17 12
Registration & filing fees ....... 3 1 -- 12 1
Custody fees ..................... 18 3 14 15 4
Trustee fees ..................... 1 1 7 2 1
Miscellaneous fees ............... 12 8 48 32 14
------ ------ ------ ------ ------
Total expenses ................ 330 231 1,294 557 298
Less: Expenses waived ......... (116) (74) (520) (247) (126)
------ ------ ------ ------ ------
Total net expenses ............ 214 157 774 310 172
------ ------ ------ ------ ------
NET INVESTMENT INCOME ............... 1,630 754 7,661 3,034 1,077
------ ------ ------ ------ ------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Net realized gain (loss) on
investments ...................... 994 -- (2) 3 --
Net change in unrealized appreciation
of investments ................... 371 755 -- -- --
------ ------ ------ ------ ------
Net realized and unrealized
gain (loss) on investments .. 1,365 755 (2) 3 --
------ ------ ------ ------ ------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ........ $2,995 $1,509 $7,659 $3,037 $1,077
====== ====== ====== ====== ======
</TABLE>
The accompanying notes are an integral part of the financial statements.
================================================================================
October 31, 1995 31
<PAGE> 34
STATEMENTS OF CHANGES IN NET ASSETS INVENTOR FUNDS
================================================================================
For the period ended October 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
EQUITY GROWTH FUND
5/1/95 8/10/94(1)
TO 10/31/95 TO 4/30/95
(000) (000)
=======================================================================================================================
<S> <C> <C>
OPERATIONS:
Net investment income ................................................ $ 346 $ 513
Net realized gain (loss) on investments .............................. 3,978 556
Net change in unrealized appreciation on investments ................. 1,856 2,748
------- -------
Net increase resulting from operations ............................ 6,180 3,817
------- -------
DIVIDENDS DISTRIBUTED FROM:
Net investment income ................................................ (346) (513)
Net realized gains ................................................... -- (85)
------- -------
Total dividends distributed ....................................... (346) (598)
------- -------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued .......................................... 5,166 55,864
Shares issued in lieu of cash distributions .......................... 9 1
Cost of shares repurchased ........................................... (2,245) (12,427)
------- -------
Increase in net assets derived from capital share transactions .... 2,930 43,438
------- -------
Net increase in net assets .............................................. 8,764 46,657
------- -------
NET ASSETS:
Beginning of period .................................................. 46,657 --
------- -------
End of period ........................................................ $55,421 $46,657
======= =======
CAPITAL SHARE TRANSACTIONS:
Capital shares outstanding at beginning of period ....................... 4,363 --
Shares issued ..................................................... 447 5,577
Shares issued in lieu of cash distributions ....................... 1 --
Shares repurchased ................................................ (199) (1,214)
------- -------
Increase derived from capital share transactions .................. 249 4,363
------- -------
Capital shares outstanding at end of period ............................. 4,612 4,363
======= =======
</TABLE>
- ----------------------------
(1) Commenced operations on August 10, 1994.
The accompanying notes are an integral part of the financial statements.
================================================================================
32 October 31, 1995
<PAGE> 35
STATEMENTS OF CHANGES IN NET ASSETS INVENTOR FUNDS
================================================================================
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT PENNSYLVANIA MUNICIPAL
SECURITIES FUND GNMA SECURITIES FUND BOND FUND
5/1/95 8/10/94(1) 5/1/95 8/10/94(1) 5/1/95 8/10/94(1)
TO 10/31/95 TO 4/30/95 TO 10/31/95 TO 4/30/95 TO 10/31/95 TO 4/30/95
(000) (000) (000) (000) (000) (000)
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income ....................... $ 2,610 $ 2,251 $ 1,630 $ 1,954 $ 754 $ 972
Net realized gain (loss) on investments ..... 770 (362) 994 80 -- --
Net change in unrealized appreciation
on investments ........................... 1,256 632 371 638 755 204
------- -------- ------- ------- ------- -------
Net increase resulting from operations ... 4,636 2,521 2,995 2,672 1,509 1,176
------- -------- ------- ------- ------- -------
DIVIDENDS DISTRIBUTED FROM:
Net investment income ....................... (2,610) (2,251) (1,635) (1,954) (753) (972)
Net realized gains .......................... -- -- -- -- -- --
------- -------- ------- ------- ------- -------
Total dividends distributed .............. (2,610) (2,251) (1,635) (1,954) (753) (972)
------- -------- ------- ------- ------- -------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued ................. 37,543 66,686 11,427 48,509 4,131 38,051
Shares issued in lieu of cash
distributions ............................ 22 2 24 1 1 --
Cost of shares repurchased .................. (1,478) (13,642) (893) (7,016) (970) (3,617)
------- -------- ------- ------- ------- -------
Increase in net assets derived from
capital share transactions ............. 36,087 53,046 10,558 41,494 3,162 34,434
------- -------- ------- ------- ------- -------
Net increase in net assets ..................... 38,113 53,316 11,918 42,212 3,918 34,638
------- -------- ------- ------- ------- -------
NET ASSETS:
Beginning of period ......................... 53,316 -- 42,212 -- 34,638 --
------- -------- ------- ------- ------- -------
End of period ............................... $91,429 $ 53,316 $54,130 $42,212 $38,556 $34,638
======= ======== ======= ======= ======= =======
CAPITAL SHARE TRANSACTIONS:
Capital shares outstanding at beginning
of period ................................... 5,319 -- 4,154 -- 3,451 --
Shares issued ............................ 3,688 6,685 1,105 4,855 406 3,816
Shares issued in lieu of cash
distributions .......................... 2 -- 2 -- -- --
Shares repurchased ....................... (144) (1,366) (86) (701) (95) (365)
------- -------- ------- ------- ------- -------
Increase derived from capital share
transactions ............................ 3,546 5,319 1,021 4,154 311 3,451
------- -------- ------- ------- ------- -------
Capital shares outstanding at end of period .... 8,865 5,319 5,175 4,154 3,762 3,451
======= ======== ======= ======= ======= =======
</TABLE>
- ----------------------------
(1) Commenced operations on August 10, 1994.
The accompanying notes are an integral part of the financial statements.
================================================================================
October 31, 1995 33
<PAGE> 36
STATEMENTS OF CHANGES IN NET ASSETS INVESTOR FUNDS
================================================================================
For the period ended October 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
PRIME OBLIGATIONS
MONEY MARKET FUND
5/1/95 8/8/94(1)
to 10/31/95 to 4/30/95
(000) (000)
==================================================================================
<S> <C> <C>
OPERATIONS:
Net investment income ........................... $ 7,661 $ 8,619
Net realized gain (loss) on investments ......... (2) --
--------- ---------
Net increase resulting from operations ....... 7,659 8,619
--------- ---------
DIVIDENDS DISTRIBUTED FROM:
Net investment income ........................... (7,661) (8,619)
Net realized gains .............................. -- --
--------- ---------
Total dividends distributed .................. (7,661) 8,619
--------- ---------
CAPITAL SHARE TRANSACTIONS (ALL AT $1.00 PER SHARE):
Proceeds from shares issued ..................... 323,658 647,086
Shares issued in lieu of cash distributions ..... 198 52
Cost of shares repurchased ...................... (334,216) (357,179)
--------- ---------
Increase (decrease) in net assets derived
from capital share transactions ........... (10,360) 289,959
--------- ---------
Net increase (decrease) in net assets .............. (10,362) 289,959
--------- ---------
NET ASSETS:
Beginning of period ............................. 290,058 99
--------- ---------
End of period ................................... $ 279,696 $ 290,058
========= =========
</TABLE>
- ----------------------------
(1) Commenced operations on August 8, 1994.
The accompanying notes are an integral part of the financial statements.
================================================================================
34 October 31, 1995
<PAGE> 37
STATEMENTS OF CHANGES IN NET ASSETS INVENTOR FUNDS
================================================================================
For the period ended October 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
TREASURY SECURITIES PENNSYLVANIA TAX-EXEMPT
MONEY MARKET FUND MONEY MARKET FUND
5/1/95 8/8/94(1) 5/1/95 8/8/94(1)
to 10/31/95 to 4/30/95 to 10/31/95 to 4/30/95
(000) (000) (000) (000)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income ........................... $ 3,034 $ 2,151 $ 1,077 $ 1,145
Net realized gain (loss) on investments ......... 3 14 -- --
--------- --------- --------- ---------
Net increase resulting from operations ....... 3,037 2,165 1,077 1,145
--------- --------- --------- ---------
DIVIDENDS DISTRIBUTED FROM:
Net investment income ........................... (3,034) (2,151) (1,077) (1,145)
Net realized gains .............................. -- -- -- --
--------- --------- --------- ---------
Total dividends distributed .................. (3,034) (2,151) (1,077) (1,145)
--------- --------- --------- ---------
CAPITAL SHARE TRANSACTIONS (ALL AT $1.00 PER SHARE):
Proceeds from shares issued ..................... 361,008 330,496 69,001 119,764
Shares issued in lieu of cash distributions ..... 83 71 29 11
Cost of shares repurchased ...................... (309,242) (250,090) (63,541) (63,107)
--------- --------- --------- ---------
Increase (decrease) in net assets derived
from capital share transactions ........... 51,849 80,477 5,489 56,668
--------- --------- --------- ---------
Net increase (decrease) in net assets .............. 51,852 80,491 5,489 56,668
--------- --------- --------- ---------
NET ASSETS:
Beginning of period ............................. 80,491 -- 56,668 --
--------- --------- --------- ---------
End of period ................................... $ 132,343 $ 80,491 $ 62,157 $ 56,668
========= ========= ========= =========
</TABLE>
- ----------
(1) Commenced operations on August 8, 1994.
The accompanying notes are on integral part of the financial statements.
================================================================================
October 31, 1995 35
<PAGE> 38
FINANCIAL HIGHLIGHTS INVENTOR FUNDS
================================================================================
For the period ended October 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
NET REALIZED DISTRIBUTIONS
NET ASSET AND DISTRIBUTIONS FROM
VALUE NET UNREALIZED FROM NET REALIZED
BEGINNING INVESTMENT GAINS INVESTMENT CAPITAL
For a Share Outstanding Throughout the Period OF PERIOD INCOME ON SECURITIES INCOME GAINS
=========================================================================================================================
<S> <C> <C> <C> <C> <C>
EQUITY GROWTH
- -------------
Class A(3)
1996*.................................... $10.69 $0.08 $1.33 $(0.08) $ --
1995(1).................................. 10.00 0.12 0.71 (0.12) (0.02)
- ----------------------------------
INTERMEDIATE GOVERNMENT SECURITIES
- ----------------------------------
Class A(3)
1996*.................................... 10.02 0.32 0.29 (0.32) --
1995(1).................................. 10.00 0.44 0.02 (0.44) --
- ---------------
GNMA SECURITIES
- ---------------
Class A(3)
1996*.................................... 10.16 0.34 0.30 (0.34) --
1995(1).................................. 10.00 0.48 0.16 (0.48) --
- ---------------------------
PENNSYLVANIA MUNICIPAL BOND
- ---------------------------
Class A(3)
1996*.................................... 10.04 0.21 0.21 (0.21) --
1995(1).................................. 10.00 0.29 0.04 (0.29) --
- ------------------------------
PRIME OBLIGATIONS MONEY MARKET
- ------------------------------
Class A
1996*.................................... 1.00 0.03 -- (0.03) --
1995(2).................................. 1.00 0.04 -- (0.04) --
- --------------------------------
TREASURY SECURITIES MONEY MARKET
- --------------------------------
Class A
1996*.................................... 1.00 0.03 -- (0.03) --
1995(2).................................. 1.00 0.04 -- (0.04) --
- -----------------------
PENNSYLVANIA TAX-EXEMPT
MONEY MARKET
- -----------------------
Class A
1996*.................................... 1.00 0.02 -- (0.02) --
1995(2).................................. 1.00 0.02 -- (0.02) --
</TABLE>
- ----------
* All ratios for the semi-annual period ended October 31, 1995 (unaudited)
have been annualized.
+ Returns are for the period indicated and have not been annualized.
(1) Commenced operations on August 10, 1994. All ratios for the period have
been annualized.
(2) Commenced operations on August 8, 1994. All ratios for the period have been
annualized.
(3) Total Return does not reflect the sales charge.
The accompanying notes are an integral part of the financial statements.
================================================================================
36 October 31, 1995
<PAGE> 39
FINANCIAL HIGHLIGHTS INVENTOR FUNDS
================================================================================
<TABLE>
<CAPTION>
RATIO OF NET
NET ASSET NET ASSETS RATIO OF INVESTMENT
VALUE END EXPENSES INCOME TO
END TOTAL OF PERIOD TO AVERAGE AVERAGE
For a Share Outstanding Throughout the Period OF PERIOD RETURN (000) NET ASSETS NET ASSETS
===========================================================================================================
<S> <C> <C> <C> <C> <C>
EQUITY GROWTH
- -------------
Class A(3)
1996*................................... $12.02 13.20%+ $55,421 0.95% 1.34%
1995(1)................................. 10.69 8.33+ 46,657 0.95 1.57
- ----------------------------------
INTERMEDIATE GOVERNMENT SECURITIES
- ----------------------------------
Class A(3)
1996*................................... 10.31 6.15+ 91,429 0.85 6.20
1995(1)................................. 10.02 4.75+ 53,316 0.85 6.17
- ---------------
GNMA SECURITIES
- ---------------
Class A(3)
1996*................................... 10.46 6.36+ 54,130 0.85 6.47
1995(1)................................. 10.16 6.61+ 42,212 0.85 6.68
- ---------------------------
PENNSYLVANIA MUNICIPAL BOND
- ---------------------------
Class A(3)
1996*................................... 10.25 4.21+ 38,556 0.85 4.08
1995(1)................................. 10.04 3.38+ 34,638 0.85 4.05
- ------------------------------
PRIME OBLIGATIONS MONEY MARKET
- ------------------------------
Class A
1996*................................... 1.00 2.78+ 279,696 0.55 5.45
1995(2)................................. 1.00 3.76+ 290,058 0.55 5.16
- --------------------------------
TREASURY SECURITIES MONEY MARKET
- --------------------------------
Class A
1996*................................... 1.00 2.75+ 132,343 0.55 5.39
1995(2)................................. 1.00 3.60+ 80,491 0.55 5.00
- -----------------------
PENNSYLVANIA TAX-EXEMPT
MONEY MARKET
- -----------------------
Class A
1996*................................... 1.00 1.75+ 62,157 0.55 3.44
1995(2)................................. 1.00 2.32+ 56,668 0.55 3.21
</TABLE>
<TABLE>
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES INCOME TO
TO AVERAGE AVERAGE
NET ASSETS NET ASSETS PORTFOLIO
(EXCLUDING (EXCLUDING TURNOVER
For a Share Outstanding Throughout the Period WAIVERS) WAIVERS) RATE
=====================================================================================
<S> <C> <C> <C>
EQUITY GROWTH
- -------------
Class A(3)
1996*................................... 1.43% 0.86% 85%
1995(1)................................. 1.48 1.04 110
- ----------------------------------
INTERMEDIATE GOVERNMENT SECURITIES
- ----------------------------------
Class A(3)
1996*................................... 1.27 5.78 53
1995(1)................................. 1.33 5.69 172
- ---------------
GNMA SECURITIES
- ---------------
Class A(3)
1996*................................... 1.31 6.01 103
1995(1)................................. 1.40 6.13 226
- ---------------------------
PENNSYLVANIA MUNICIPAL BOND
- ---------------------------
Class A(3)
1996*................................... 1.25 3.68 4
1995(1)................................. 1.36 3.54 4
- ------------------------------
PRIME OBLIGATIONS MONEY MARKET
- ------------------------------
Class A
1996*................................... 0.92 5.08 --
1995(2)................................. 1.01 4.70 --
- --------------------------------
TREASURY SECURITIES MONEY MARKET
- --------------------------------
Class A
1996*................................... 0.99 4.95 --
1995(2)................................. 1.05 4.50 --
- -----------------------
PENNSYLVANIA TAX-EXEMPT
MONEY MARKET
- -----------------------
Class A
1996*................................... 0.95 3.04 --
1995(2)................................. 1.04 2.72 --
</TABLE>
- ----------------------------
(*) All ratios for the semi-annual period ended October 31, 1995 (unaudited)
have been annualized.
(+) Returns are for the period indicated and have not been annualized.
(1) Commenced operations on August 10, 1994. All ratios for the period have
been annualized.
(2) Commenced operations on August 8, 1994. All ratios for the period have
been annualized.
(3) Total Return does not reflect the sales charge.
================================================================================
October 31, 1995 37
<PAGE> 40
NOTES TO FINANCIAL STATEMENTS INVENTOR FUNDS
================================================================================
October 31, 1995 (Unaudited)
1. ORGANIZATION
Inventor Funds, Inc. (the "Corporation") was organized as a Maryland
corporation under Articles of Incorporation dated April 22, 1994. The
Corporation is registered under the Investment Company Act of 1940, as amended,
as a diversified, open-end management investment company with seven funds:
Equity Growth Fund, Intermediate Government Securities Fund, GNMA Securities
Fund, Pennsylvania Municipal Bond Fund, Prime Obligations Money Market Fund,
Treasury Securities Money Market Fund, and Pennsylvania Tax-Exempt Money Market
Fund (referred to as a "Fund" or collectively as the "Funds"). The assets of
each Fund are segregated, and a shareholder's interest is limited to the Fund in
which shares are held.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Funds.
Security Valuation -- Investment securities of the Prime Obligations Money
Market Fund, Treasury Securities Money Market Fund and the Pennsylvania
Tax-Exempt Money Market Fund (the "Money Market Funds") are stated at amortized
cost which approximates market value. Under this valuation method, purchase
discounts and premiums are accreted and amortized ratably to maturity and are
included in interest income. Investment securities of the Equity Growth Fund,
Intermediate Government Securities Fund, GNMA Securities Fund and the
Pennsylvania Municipal Bond Fund (the "Non-Money Market Funds") which are listed
on a securities exchange for which market quotations are available are valued by
an independent pricing service at the last quoted sales price for such
securities on each business day. If there is no such reported sale, these
securities and unlisted securities for which market quotations are readily
available are valued at the most recent quoted bid price.
Security Transactions and Investment Income -- Security transactions are
accounted for on the trade date of the security purchase or sale. Cost used in
determining net realized capital gains and losses on the sale of securities are
those of the specific securities sold, adjusted for the accretion and
amortization of purchase discounts or premiums during the respective holding
period which is calculated using the effective interest method. Interest income
is recorded on the accrual basis. Dividend income is recorded on ex- dividend
date. Gains and losses from pay-downs of mortgage-backed securities are included
in net investment income.
Repurchase Agreements -- Securities pledged as collateral for Repurchase
Agreements are held by the custodian bank until maturity of the Repurchase
Agreements. Provisions of the Agreements and procedures adopted by Integra Trust
Company (the "Adviser") ensure that the market value of the collateral,
including interest thereon, is sufficient in the event of default by the
counterparty. If the counterparty defaults and the value of the collateral
declines or if the counterparty enters an insolvency proceeding, realization of
the collateral by the Fund may be delayed or limited.
TBA Purchase Commitments -- The Intermediate Government Securities Fund and
the GNMA Securities Fund may enter into "TBA" (to be announced) purchase
commitments to purchase securities for a fixed price at a future date beyond
customary settlement time. TBA purchase commitments may be considered securities
in themselves, and involve a risk of loss if the value of the security to be
purchased declines prior to settlement date, which risk is in addition to the
risk of decline in the value of the funds' other assets. Unsettled TBA purchase
commitments are valued at the current market value of the underlying securities,
generally according to the procedures described under "Security Valuation"
above.
TBA Sale Commitments -- The Intermediate Government Securities Fund and the
GNMA Securities Fund may enter into sale commitments to hedge its portfolio
positions or to sell mortgage-backed securities it owns under delayed delivery
agreements. Proceeds of TBA sale commitments are not received until the contract
settlement date. Unsettled TBA sale commitments are valued at the current market
value of the underlying securities, generally according to the procedures
described under "Security
================================================================================
38 October 31, 1995
<PAGE> 41
NOTES TO FINANCIAL STATEMENTS CONTINUED INVENTOR FUNDS
================================================================================
Valuation" above. The contract is "marked to market" daily and the change in
value is recorded by the fund as unrealized gain or loss. If the TBA sale
commitment is closed through the acquisition of an offsetting purchase
commitment the fund realizes a gain or loss without regard to any unrealized
gain or loss on the underlying security. If securities are delivered under the
commitment, the fund realizes a gain or loss from the sale of the securities
based upon the unit price at the date the commitment was entered into.
Expenses -- Expenses that are directly related to one of the Funds are
charged directly to that Fund. Other operating expenses of the Funds are
prorated to the Funds on the basis of relative net assets.
Distributions to Shareholders -- The Equity Growth Fund declares and pays
dividends from net investment income on a monthly basis. The Intermediate
Government Securities Fund, GNMA Securities Fund, Pennsylvania Municipal Bond
Fund, Prime Obligations Money Market Fund, Treasury Securities Money Market
Fund, and Pennsylvania Tax-Exempt Money Market Fund distributions from net
investment income are declared on a daily basis and are payable monthly. Any net
realized capital gains on sales of securities are distributed to shareholders at
least annually.
Federal Income Taxes -- It is each Fund's intention to continue to qualify as
a regulated investment company and distribute all of its taxable income.
Accordingly, no provision for Federal income taxes is required.
Organization Costs -- Organizational costs have been capitalized by the Funds
and are being amortized over sixty months commencing with operations. In the
event any of the initial shares of the Funds are redeemed by any holder thereof
during the period that the Funds are amortizing their organizational costs, the
redemption proceeds payable to the holder thereof by the Funds will be reduced
by the unamortized organizational costs in the same ratio as the number of
initial shares being redeemed bears to the number of initial shares outstanding
at the time of redemption. These costs include legal fees of approximately
$53,415 for organizational work performed by a law firm of which an officer and
trustee of the Funds is a partner.
Other -- Certain officers of the Funds are also officers of the Administrator
and/or Distributor. Such officers are paid no fees by the Funds for serving as
officers of the Corporation.
3. FEES AND EXPENSES
The Funds and the Adviser have entered into an investment advisory agreement,
dated August 1, 1994, under which the Adviser will receive an annual fee equal
to 0.85% of the average daily net assets of the Equity Growth Fund; 0.70% of the
average daily net assets of the Intermediate Government Securities, GNMA
Securities and Pennsylvania Municipal Bond Funds; and 0.45% of the average daily
net assets of the Prime Obligations Money Market, Treasury Securities Money
Market and Pennsylvania Tax-Exempt Money Market Funds.
Sub-Advisory services are provided to the Adviser for the Equity Growth Fund
by STI Capital Management, N.A. (formerly Sun Bank Capital Management, N.A.);
for the Intermediate Government Securities, GNMA Securities, Prime Obligations
Money Market and Treasury Securities Money Market Funds by Wellington Management
Company; and for the Pennsylvania Municipal Bond and Pennsylvania Tax-Exempt
Money Market Funds by Weiss, Peck & Greer L.L.C. (the "Sub-Advisers") pursuant
to sub-advisory agreements dated August 1, 1994. Under the terms of such
agreements, the Sub-Advisers are entitled to receive a fee from the Adviser.
Such a fee is computed daily and paid monthly. The Adviser is responsible for
the supervision of, and payment of fees to, the Sub-Advisers in connection with
their services.
SEI Financial Services Company (the "Distributor"), a wholly-owned subsidiary
of SEI Corporation ("SEI"), became the Fund's Distributor pursuant to an
agreement dated August 1, 1994. The Class A shares of the Funds have a Rule
12b-1 Distribution Plan (the "Class A Plan"), under which such shares bear
distribution expenses and related service fees at the annual rate of up to 0.25%
of their average daily net assets.
================================================================================
October 31, 1995 39
<PAGE> 42
NOTES TO FINANCIAL STATEMENTS CONTINUED INVENTOR FUNDS
================================================================================
October 31, 1995 (Unaudited)
Pursuant to an administration agreement dated August 1, 1994, SEI Financial
Management Company (the "Administrator"), a wholly-owned subsidiary of SEI, acts
as the Fund's Administrator. Under the terms of the administration agreement,
the Administrator will receive an annual fee which is calculated daily and paid
monthly at a maximum annual rate of 0.18% of the average daily net assets of the
Equity Growth, Intermediate Government Securities, GNMA Securities, and
Pennsylvania Municipal Bond Funds, and 0.15% of the average daily net assets of
the Prime Obligations Money Market, Treasury Securities Money Market and
Pennsylvania Tax-Exempt Money Market Funds.
During the period ended October 31, 1995, the Adviser and other parties
waived a portion of their contractual fees in order to assist the Funds in
maintaining a competitive expense ratio. Expenses were waived as follows (in
thousands):
<TABLE>
<CAPTION>
PRIME TREASURY PENNSYLVANIA
OBLIGATIONS SECURITIES TAX-EXEMPT
EQUITY INTERMEDIATE GNMA PENNSYLVANIA MONEY MONEY MONEY
GROWTH GOVERNMENT SECURITIES MUNICIPAL MARKET MARKET MARKET
FUND SECURITIES FUND FUND BOND FUND FUND FUND FUND
============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Waiver of investment
advisory fees ............... $ 59 $ 70 $ 53 $18 $169 $106 $ 48
Waiver of administrative fee ... -- -- -- 10 -- -- --
Waiver of 12b-1 fees ........... 65 105 63 46 351 141 78
============================================================================================================================
Total Waivers ............. $124 $175 $116 $74 $520 $247 $126
============================================================================================================================
</TABLE>
4. INVESTMENT TRANSACTIONS
During the period ended October 31, 1995, purchases of securities and
proceeds from sales of securities, other than temporary investments in
short-term securities, were as follows (000):
<TABLE>
<CAPTION>
EQUITY INTERMEDIATE GNMA PENNSYLVANIA
GROWTH GOVERNMENT SECURITIES MUNICIPAL
FUND SECURITIES FUND FUND BOND FUND
=====================================================================================
<S> <C> <C> <C> <C>
PURCHASES
U.S. Government .... $ -- $71,045 $61,811 $ --
Other .............. 42,674 -- -- 5,284
SALES
U.S. Government .... $ -- $39,464 $49,044 $ --
Other .............. 39,367 -- -- 1,045
</TABLE>
At October 31, 1995, the total cost of securities and net realized gains or
losses on securities sold for federal income tax purposes was not materially
different from amounts reported for financial reporting purposes. The aggregate
gross unrealized appreciation and depreciation for securities held at October
31, 1995 is as follows (000):
<TABLE>
<CAPTION>
EQUITY INTERMEDIATE GNMA PENNSYLVANIA
GROWTH GOVERNMENT SECURITIES MUNICIPAL
FUND SECURITIES FUND FUND BOND FUND
==============================================================================================================
<S> <C> <C> <C> <C>
Aggregate gross unrealized appreciation ..... $ 5,997 $ 1,948 $ 1,050 $959
Aggregate gross unrealized depreciation ..... (1,393) (60) (41) --
- --------------------------------------------------------------------------------------------------------------
Net unrealized appreciation ................. $ 4,604 $ 1,888 $ 1,009 $959
==============================================================================================================
</TABLE>
================================================================================
40 October 31, 1995
<PAGE> 43
NOTES
================================================================================
<PAGE> 44
NOT FDIC INSURED [INVENTOR FUNDS LOGO]
- ------------------------------------
MUTUAL FUNDS & OTHER 1995
INVESTMENT PRODUCTS ARE: SEMI-ANNUAL
- ------------------------------------ REPORT TO
- - NOT INSURED BY THE FDIC SHAREHOLDERS
- - NOT DEPOSITS OR OBLIGATIONS OF, OR OCTOBER 31, 1995
GUARANTEED BY, INTEGRA BANK OR ANY
OF ITS AFFILIATES
- - SUBJECT TO INVESTMENT RISK,
INCLUDING POSSIBLE LOSS OF THE
PRINCIPAL INVESTED
- ------------------------------------
This report and the financial statements contained herein are submitted for the
general information of the shareholders of the corporation and must be preceded
or accompanied by a current prospectus for the fund described.
SEI Financial Services Company, the distributor, is not affiliated with Integra
Trust Company.
INVENTOR FUNDS
- ------------------------------------
INVESTMENT ADVISER
Integra Trust Company
SUB ADVISERS
Wellington Management Company
Weiss, Peck & Greer L.L.C.
STI Capital Management, N.A.
ADMINISTRATOR
SEI Financial Management Corporation
TRANSFER AGENT
DST Systems, Inc.
DISTRIBUTOR
SEI Financial Services Company
COUNSEL
Morgan, Lewis & Bockius
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand, L.L.P.
[GRAPHIC 1]
19294 INT-F-296-01
================================================================================
