INVENTOR FUNDS LOGO
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INVENTOR FUNDS
BETTER IDEAS FOR YOUR FUTURE
1996
ANNUAL
REPORT TO
SHAREHOLDERS
April 30, 1996
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TABLE OF CONTENTS INVENTOR FUNDS
Letter to Shareholders ....................................... 1
Advisers' Review ............................................. 4
Statements of Net Assets ..................................... 13
Statements of Operations ..................................... 32
Statements of Changes in Net Assets .......................... 34
Financial Highlights ......................................... 38
Notes to Financial Statements ................................ 43
Notice to Shareholders ....................................... 44
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April 30, 1996
<PAGE>
LETTER TO SHAREHOLDERS INVENTOR FUNDS
DEAR INVENTOR FUNDS SHAREHOLDER:
"What a difference a year makes!" That was the opening statement in our last
shareholder letter to you back in October. At that time we were referencing the
vast improvement in the market conditions which had occurred over the past
several months. Again we can make this same statement as Inventor Funds is
going through a period of significant transition -- one which we feel will
positively influence your investment with us -- as we prepare to join forces
with ARMADA FUNDS.
As we informed you in our last report, Integra Financial Corporation, the
parent to the Fund's investment adviser, Integra Trust Company, had agreed to
merge with National City Corporation. As many of you know, this merger occurred
on May 2, of this year. Since 1986, affiliates of National City Corporation have
served as investment advisers to ARMADA FUNDS.The ARMADA family of mutual Funds
presently consists of eleven portfolios holding over $3.6 billion dollars.
On February 12, 1996, the Inventor Fund`s Board of Trustees approved a
resolution naming National City Bank as investment adviser to the funds. This
resolution was presented to the Fund's shareholders for approval and passed
at a special shareholders meeting on May 2.
Then on March 18, 1996, the Board of Trustees unanimously approved a plan to
merge the Inventor Funds into ARMADA FUNDS. Pending approval of shareholders at
a special shareholders meeting scheduled for August 1, 1996, the fund families
will merge in September. Proxy information about this meeting is being sent in a
separate mailing.
Upon request of the Fund Adviser and with approval by the Board of Trustees,
the Prime Obligations and Treasury Securities Money Market Funds were dissolved
on May 31. Where positive consent was obtained from shareholders, assets in
these Funds were moved to an ARMADA money market fund having similar investment
objectives.
The Inventor Equity Growth Fund will be merged into the existing ARMADA
Equity Fund. This Fund has similar investment objectives -- investing in stocks
of large sized companies having rapid earnings growth -- and is managed in a
similar manner as its Inventor counterpart.
The remaining Funds -- GNMA Securities, Intermediate Government Securities,
Pennsylvania Municipal Bond, and the Pennsylvania Tax-Exempt Money Market
- --will be merged intact into ARMADA FUNDS as new funds to the family. The
two Pennsylvania tax-free funds will continue to be sub-advised by Weiss, Peck
and Greer while the two taxable fixed income funds will then be managed by
National City.
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APRIL 30, 1996 1
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LETTER TO SHAREHOLDERS INVENTOR FUNDS
The merger between the funds will provide several benefits:
A larger family and larger portfolios will create additional economies and in
some cases reduce the overall expense ratios, which may translate into more
earnings being passed onto the shareholder.
Upon completion of the merger, ARMADA FUNDS will offer three equity funds,
seven fixed income funds and five money market funds. As your investment
objectives change or you wish to further diversify, you'll now have more options
to select from within the same fund family.
Finally, it would be inappropriate to close without some discussion about
your Funds' performance. Since the beginning of the year, pressure on interest
rates has pushed them higher as fears pervade that a strong economy may bring on
higher inflation. Then at the end of January, the Federal Reserve (the "Fed")
made the move to increase the Fed Funds Rate by one-quarter percent. Since then,
the bond markets have kept a close eye on any indications that the economy is
overheating which could trigger further Fed action. Particular sensitivity has
been shown towards the strong employment figures reported near the beginning of
each month. This pressure has pushed 30 year Treasury Bond rates close to 7%,
with them often crossing this rather significant level. Intermediate bond rates
have been near the 6.75% range, while two to five year notes have been trading
well above 6% and over 6.5% on the longer end.
This increase in interest rates has hampered fund performance within the
fixed income sectors as bond prices, which move in opposite direction of
interest rates, have fallen. This has provided negative year-to-date returns on
the three Inventor fixed income funds -- Intermediate Government Securities,
GNMA Securities, and Pennsylvania Municipal Bond. Despite posting negative
returns, the funds have performed near or at the top of their respective peer
group for year-to-date 1996. Each of these funds have ranked in the top quintile
of their peer group according to Lipper Analytical Services. This marked
improvement has been due to the defensive nature the managers have taken with
the funds and from the efforts that were initiated last year to help performance
results. Each of the fund managers have provided their own analysis of
performance in more detail in the Adviser's Review section of this report.
1996 has seen the continuance of the bull market in stocks. As of April 30,
the Equity Growth Fund had a 7.6% year-to-date return, placing it in the middle
performance quintile for growth funds. One year performance was a very
respectable 29.95% placing it at above average performance for growth funds with
a 43 percentile ranking.
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2 APRIL 30, 1996
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LETTER TO SHAREHOLDERS INVENTOR FUNDS
As this will most likely be our final shareholder report to you, all of us
associated with the Inventor Funds want to thank you for investing with us. We
also want to assure you that we feel that ARMADA FUNDS will live up to your
investment expectations in the future. As we approach conversion dates, we will
keep you informed of anything significant that may impact your account. Again,
thank you for investing with Inventor Funds.
(/S/DAVID G. LEE)
David G. Lee
President
Inventor Funds, Inc.
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APRIL 30, 1996 3
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ADVISERS' REVIEW INVENTOR FUNDS
ECONOMIC OUTLOOK
The economy put in a deceptively strong performance in the first quarter of the
year as real Gross Domestic Product (GDP) grew by 2.3%. Aggregate activity was
actually significantly more robust than this number suggests, as large gains in
final sales were somewhat offset by the first outright decline in inventories
since the previous recession. Employment growth has been impressive so far this
year, with job growth averaging over 270,000 over the last three months, while
the unemployment rate stands at a cyclical low of 5.4%. Large job gains appear
poised to continue as jobless claims have declined nine out of the last ten
weeks, while other employment data such as overtime levels point to continued
strength in the labor market. Also contributing to the upturn in the economy has
been the housing market, which has yet to turn down even in a significantly
higher interest rate environment. Accordingly, we foresee continued above
average growth in the second quarter of 1996, with a GDP forecast of
considerably over 3%. On the other hand, the second half of the year should
moderate as consumer demand softens due to higher debt burdens and interest
rate sensitive sectors finally turn down.
Inflation for 1996 has thus far seen a modest uptick as food and energy prices
continue to increase substantially. However, if these always volatile sectors
are taken out of consumer and producer price indices, the "core inflation"
picture looks much better. Consumer inflation should remain close to the 3%
level for this year, which while the highest in four years, is quite respectable
given the tendency for inflation to accelerate as economic expansions age. We
continue to believe that the key to future inflation trends are centered on wage
and productivity trends, both of which though currently positive, bear very
close monitoring.
Given the apparent strength of the economy, the market has priced in 50 basis
points (bp) of Federal Reserve Board tightening by the end of the year. We agree
with the market and foresee at least one 25 bp increase in the Federal Funds
rate in the third quarter, followed by another 25 bp increase in the fourth
quarter.
Although the stock market has continued its impressive performance into 1996,
the bond market has not. After the 30-year Treasury bond hit a low of 5.95% at
the end of December, rates have increased sharply, as investors feared that
stronger growth could not be attained without higher inflation. Through May, the
yield on the 30 year bond has increased by over 100 bp, resulting in a -11.11%
total return. This is significantly worse performance than the corresponding
period in 1994, the worst year for the long bond since 1926. Looking forward, we
expect rates to rise even further as the economy and inflation continue to
display signs of strength, which ultimately will force the Fed to tighten.
However, as these concerns fade towards the end of the year, long rates should
decline back to today's levels of around 7%.
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4 APRIL 30, 1996
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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 to provide capital appreciation by investing in a
diversified mix of common stocks, warrants and convertible securities considered
undervalued at the time of purchase. In selecting securities for the Fund, the
adviser will evaluate other factors believed to affect capital appreciation such
as the issuer's background, industry position, historical returns on equity and
the experience and qualifications of the management team.
INVESTMENT REVIEW
The investment strategy for the Equity Growth Fund emphasizes a bottom-up
approach focusing on securities with strong historical growth rates that have
shown indications for sustaining this growth in the future. In a slowing
economy, the Fund looks for companies that offer between 5% to 15% in earnings
growth potential. Since the inception of this Fund in August of 1994, little has
changed in the basic strategy and philosophy used to manage the Fund.
What has changed, however, is the attractiveness of certain industries and
issues, which is common in the challenging investment environment which we now
face. The market continues to grow, breaking records in growth and size, even as
mixed indicators leave an unclear picture of the
AVERAGE ANNUAL TOTAL RETURN 1
- -----------------------------------------------------
One Since
Year Inception
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Equity Growth without load 29.95% 21.99%
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Equity Growth with load 24.70% 19.11%
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COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE INVENTOR EQUITY
GROWTH FUND, WITH AND WITHOUT LOAD, VERSUS THE S&P 500 COMPOSITE INDEX.
FLOW CHART
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INVENTOR EQUITY
INVENTOR EQUITY GROWTH FUND, S&P 500
GROWTH FUND WITH LOAD COMPOSITE INDEX
8/31/94 10,000 9,600 10,000
4/30/95 10,485 10,065 11,017
4/30/96 13,625 13,080 14,345
1 FOR THE PERIOD ENDED APRIL 30, 1996. PAST PERFORMANCE OF THE FUND IS NOT
PREDICTIVE OF FUTURE PERFORMANCE. THE EQUITY GROWTH FUND COMMENCED OPERATIONS ON
AUGUST 10, 1994.
state of the economy. Growth stocks have slowly come back into favor as
faster-paced smaller companies have become fully valued and investors become
more interested in larger, more consistent growth companies. Technology stocks
have caused several market indices to generate returns well above the
performance of most managers for of the past year. While these stocks are
definitely an influence on the market, the price volatility and lack of
consistent earnings makes this a difficult sector to weight fully, while
positioning for long term price appreciation. Performance has been strong
despite a limited exposure to these securities.
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APRIL 30, 1996 5
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ADVISERS' REVIEW INVENTOR FUNDS
The Equity Growth Fund continues to focus on larger cap companies with strong
historical growth trends. Focus has shifted back to a more select group of high
quality companies with strong growth potential, especially in the slowing
economic environment. Industry sectors such as financial, health, leisure and
media have been overweighted, while energy, autos, and retail are below market
weighting. Stock selection within these sectors will add the most value as the
market remains indecisive about the economy. For the 12 month period ending
April 30, 1996, the Fund had a total return of 29.95%, nearly matching the 30.21
industry overage total return as calculated by the S&P Composite index.
EQUITY GROWTH FUND
TEN LARGEST HOLDINGS AS OF 04/30/96
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Percentage
Security Description of Net Assets
- --------------------------------------------------------
Johnson & Johnson ........................ 2.2%
General Electric ......................... 2.1%
Home Depot ............................... 2.1%
McDonald's ............................... 2.0%
AT&T ..................................... 1.8%
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Percentage
Security Description of Net Assets
- --------------------------------------------------------
Tyco International ....................... 1.8%
Procter & Gamble ......................... 1.8%
CPC International ........................ 1.7%
Carnival ................................. 1.6%
Chase Manhattan .......................... 1.6%
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INTERMEDIATE GOVERNMENT
SECURITIES FUND
Sub-adviser: Wellington Management
Company
Portfolio Manager: Thomas L. Pappas
INVESTMENT OBJECTIVE
The investment objective of the Fund is to preserve capital and maintain a high
degree of liquidity while providing current income as is consistent with the
standards prescribed for the portfolio.
INVESTMENT REVIEW
For the 12 month period ending April 30, 1996, the Intermediate Government
Securities Fund had a total return of 7.09%, outpacing the industry average of
6.93% as measured by Lipper Analytical Services for Intermediate U.S. Government
Funds. However, the Fund underperformed the Merrill Lynch 3-5 Year
Intermediate-Term Treasury Index which returned 7.94% for the same period.
The bond market certainly has had two very different lives during the last
twelve months. For the first half of that period, interest rates fell and bonds
appreciated in price. Accordingly, the Fund's Net Asset Value (NAV) share price
rose by $0.29. However, in the last six months, rates rose and bond prices
suffered; in that time, the Fund's NAV price declined by a comparable $0.27.
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6 APRIL 30, 1996
<PAGE>
ADVISERS' REVIEW INVENTOR FUNDS
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AVERAGE ANNUAL TOTAL RETURN 1
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One Since
Year Inception
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Inventor Intermediate Government
Securities Fund without load 7.09% 6.91%
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Inventor Intermediate Government
Securities Fund, with load 2.78% 4.38%
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COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE INVENTOR
INTERMEDIATE GOVERNMENT SECURITIES FUND, WITH AND WITHOUT LOAD, VERSUS THE
MERRILL LYNCH 3-5 YEAR INTERMEDIATE-TERM TREASURY INDEX.
FLOW CHART
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Inventor Intermediate Merrill Lynch
INVENTOR INTERMEDIATE GOVERNMENT 3-5 YEAR
GOVERNMENT SECURITIES SECURITIES FUND INTERMEDIATE-TERM
FUND WITH LOAD TREASURY INDEX
8/31/94 10,000 9,600 10,000
4/30/95 10,400 9,984 10,446
4/30/96 11,138 10,692 11,275
1 FOR THE PERIOD ENDED APRIL 30, 1996. PAST PERFORMANCE OF THE FUND IS NOT
PREDICTIVE OF FUTURE PERFORMANCE. THE INTERMEDIATE GOVERNMENT SECURITIES FUND
COMMENCED OPERATIONS ON AUGUST 10, 1994.
The Fund attempted to weather this volatile environment by maintaining an
approximate 55% weighting in mortgages and carefully managing interest rate risk
within the Treasury sector. The Fund was able to provide a better than 7% total
return over that time period, largely due to the extra income provided by the
mortgage market. Mortgages continue to offer 1/2% to 1% more income per year
versus Treasuries, and therefore continue to look attractive.
During the last few months, we have reduced the Fund's exposure to both very
short and very long maturities, preferring instead to emphasize the "middle"
maturities, i.e. those in 3-8 years. Five year Treasuries now yield 6.4%: over
1% more than money market funds and 3-4% more than inflation.
INTERMEDIATE GOVERNMENT SECURITIES FUND
PORTFOLIO STRUCTURE
- --------------------------------------------------------
04/30/96
- --------------------------------------------------------
Merrill Lynch
3-5 Year
Intermediate Term
Fund Treasury Index
- --------------------------------------------------------
Weighted Average Maturity .... 5.2 3.9
Weighted Average Coupon ...... 7.9 6.9
Weighted Average Quality ..... AAA AAA
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GNMA SECURITIES FUND
Sub-adviser: Wellington Management
Company
Portfolio Manager: Thomas L. Pappas
INVESTMENT OBJECTIVE
The GNMA Securities Fund seeks to provide the highest level of current income
consistent with preservation of capital and a high degree of liquidity. The Fund
invests primarily (at least 65% of its assets) in mortgage pass-through
securities guaranteed by the Government National Mortgage Association.
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APRIL 30, 1996 7
<PAGE>
ADVISERS' REVIEW INVENTOR FUNDS
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AVERAGE ANNUAL TOTAL RETURN 1
- -------------------------------------------------------
One Since
Year Inception
- -------------------------------------------------------
GNMA Securities without load 7.97% 8.52%
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GNMA Securities with load 3.68% 5.95%
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COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE INVENTOR GNMA
SECURITIES FUND, WITH AND WITHOUT LOAD, VERSUS THE LEHMAN BROTHERS GNMA INDEX.
FLOW CHART
[GRAPHIC OMITTED]
INVENTOR GNMA
INVENTOR GNMA SECURITIES FUND LEHMAN BROTHERS
SECURITIES FUND WITH LOAD GNMA INDEX
8/31/94 10,000 9,600 10,000
4/30/95 10,549 10,127 10,630
4/30/96 11,389 10,934 11,434
1 FOR THE PERIOD ENDED APRIL 30, 1996. PAST PERFORMANCE OF THE FUND IS NOT
PREDICTIVE OF FUTURE PERFORMANCE. THE GNMA SECURITIES FUND COMMENCED OPERATIONS
ON AUGUST 10, 1994.
INVESTMENT REVIEW
For the 12 month period ending April 30, 1996, the GNMA Securities Fund had a
total return of 7.97%, beating the industry average total return of 7.75% for
GNMA Funds as calculated by Lipper Analytical Services by nearly 1/4 point. The
Fund also outperformed its unmanaged benchmark index, the Lehman Brothers GNMA
Index, which returned 7.84% over the same period.
The bond market certainly has had two very different lives during the last
twelve months. For the first half of that time, interest rates fell and bonds
appreciated in price. Accordingly, the Fund's Net Asset Value (NAV) share price
rose by $0.30. However, in the last six months, rates rose and bond prices
suffered; in that time, the Fund's NAV price declined by a comparable $0.34.
The Fund attempted to weather this volatile environment by controlling interest
rate and prepayment risk while remaining fully invested. This largely involved
owning "seasoned" GNMA pass-throughs instead of newer securities which have more
prepayment uncertainty and risk. The Fund was able to provide an 8% total return
over that time period, largely due to good relative performance by GNMA
mortgages. Mortgages continue to offer 1/2% to 1% more income per year versus
Treasuries, and therefore continue to look attractive. Pursuant to this outlook,
as of April 30, 1996, the Fund consisted of 89.4% GNMAs, 6.4% FHLMC's and 4.1%
Repurchase Agreements.
On an absolute basis, mortgages look attractive as GNMA 7.5% pass-throughs now
yield 7.75%, their highest yield in twelve months. These securities tend to face
less refinancing risk in the current environment, and, like all GNMAs, are
backed by the credit of the U.S. Government.
GNMA SECURITIES FUND
PORTFOLIO STRUCTURE
- ----------------------------------------------------
04/30/96
- ----------------------------------------------------
Lehman Brothers
GNMA
Fund Index
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Weighted Average Maturity .... 7.1 9.2
Weighted Average Coupon ...... 7.8 7.9
Weighted Average Quality ..... AAA AAA
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8 April 30, 1996
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ADVISERS' REVIEW INVENTOR FUNDS
PENNSYLVANIA MUNICIPAL
BOND FUND
Sub-adviser: Weiss, Peck & Greer L.L.P.
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 tax while
preserving capital.
INVESTMENT REVIEW
Market psychology was generally bullish over the last three quarters of 1995.
The market was driven by an almost unanimous view of the Federal Reserve's (the
"Fed") direction. Towards the end of 1995, the consensus view began to splinter,
as the economy and employment levels remained strong. Subsequent to the most
recent Fed action to lower rates on January 31, 1996, the market began to price
in a tightening move. This sharp reversal in perceptions produced negative
returns for all but the shortest maturities along the yield curve.
The Pennsylvania economy continues to show signs of strength as well as an
improving budgetary situation as evidenced by a fourth consecutive operating
surplus recorded for fiscal 1995.
Through the end of the third quarter of 1995, the Fund maintained an average
maturity of approximately 5.5 years. At year end, the average maturity had been
reduced to 5 years, thus insulating the Fund from the difficult market
experienced thus far in 1996. The Fund continues to seek out individual
securities that provide above average yields for the interest rate risk
taken.
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AVERAGE ANNUAL TOTAL RETURN 1
- --------------------------------------------------------------
One Since
Year Inception
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Pennsylvania Municipal Bond without load 5.06% 4.92%
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Pennsylvania Municipal Bond with load 0.84% 2.44%
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COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE INVENTOR
PENNSYLVANIA MUNICIPAL BOND FUND, WITH AND WITHOUT LOAD, VERSUS THE LEHMAN
BROTHERS 5 YEAR PENNSYLVANIA MUNICIPAL INDEX.
FLOW CHART
[GRAPHIC OMITTED]
INVENTOR PENNSYLVANIA LEHMAN BROTHERS 5 YEAR
INVENTOR PENNSYLVANIA MUNICIPAL BONDFUND PENNSYLVANIA MUNICIPAL
MUNICIPAL BOND FUND WITH LOAD INDEX
8/31/94 10,000 9,600 10,000
4/30/95 10,287 9,875 10,352
4/30/96 10,807 10,375 11,045
1 For the period ended April 30, 1996. Past performance of the Fund is not
predictive of future performance. The Pennsylvania Municipal Bond Fund commenced
operations on August 10, 1994.
For the 12 month period ended April 30, 1996, the Fund had a total return of
5.06% versus a total return of 5.81% for the average Pennsylvania Intermediate
Term Fund as reported by Lipper Analytical Services and a total return of 6.70%
for the Lehman Brothers 5 Year Pennsylvania Index. The underperformance versus
the unmanaged Lehman Brothers Index is attributable to the risk adverse nature
of the Fund's prospectus that keeps the Fund among the shortest of the category.
This limited the Fund's performance during the strength of 1995, but has aided
the Fund during the weakest of 1996.
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APRIL 30, 1996 9
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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
The Prime Obligations Money Market Fund was positioned with a longer average
maturity for most of the fiscal year in order to take advantage of declining
short term interest rates. In response to slow economic growth and low
inflation, the Federal Reserve (the "Fed") lowered the Federal funds rate three
times from 6.00% to its current 5.25% level. The start of 1996 looked like the
Fed-engineered "soft landing" would continue; however, lower interest rates and
a better employment environment revived consumer spending. Real Gross Domestic
Product ("GDP") grew 2.8% for the first quarter of 1996, double what the market
had expected. High quality commercial paper and federal agency discount notes
represented the largest segments of portfolio holdings.
PIE CHART
[GRAPHIC OMITTED]
U.S. GOVERNMENT AGENCY OBLIGATIONS 30%
CERTIFICATES OF DEPOSIT 4%
REPURCHASE AGREEMENTS 11%
COMMERCIAL PAPER 55%
as of 04/30/96
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10 APRIL 30, 1996
<PAGE>
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
involving such obligations.
INVESTMENT REVIEW
The Treasury Securities Money Market Fund is AAA rated by Standard & Poor's
Corporation, and is therefore required to maintain weighted average maturity of
no more than 60 days. While well within this higher standard, the Fund was
positioned with a relatively long average maturity for most of the fiscal year
in order to take advantage of declining short term interest rates. In response
to slow economic growth and low inflation, the Federal Reserve (the "Fed")
lowered the Federal funds rate three times from 6.00% to its current 5.25%
level. The start of 1996 looked like the Fed-engineered "soft landing" would
continue; however, lower interest rates and a better employment environment
revived consumer spending. Real Gross Domestic Product grew 2.8% for the first
quarter of 1996, double what the market had expected. At the end of the period
the portfolio remained with 2/3 of its holdings in U.S. Treasury obligations and
the balance in repurchase agreements collateralized by U.S. Treasuries.
PIE CHART
[GRAPHIC OMITTED]
REPURCHASE AGREEMENTS 33%
U.S.TREASURY OBLIGATIONS 67%
as of 04/30/96
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APRIL 30, 1996 11
<PAGE>
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 tax and Pennsylvania personal income taxes,
consistent with the stability of principal. The Fund invests in high quality
debt obligations issued by or on behalf of the Commonwealth of Pennsylvania and
its political subdivisions and financing authorities.
All securities in which the Fund invests must be rated in one of the two highest
short-term rating categories by one or more nationally recognized statistical
rating organizations or be of comparable quality as determined by the
sub-adviser.
INVESTMENT REVIEW
For the 12 month period ending April 30, 1996, the average weighted maturity of
the Pennsylvania Tax Exempt Money Market Fund ranged between 50 and 60 days. As
of April 30, 1996, approximately 50% of the Fund's assets were invested in
variable rate demand obligations which have daily and weekly put options and
rate resets; the remainder of the Fund's assets invested in longer-term
securities maturing within 397 days. The Fund is sound and cushioned with
relation to current events and trends in the financial markets.
- --------------------------------------------------------------------------------
12 APRIL 30, 1996
<PAGE>
STATEMENT OF NET ASSETS INVENTOR FUNDS
MARKET
VALUE
EQUITY GROWTH FUND SHARES (000)
- -------------------------------------------------------
COMMON STOCKS (88.7%)
- -------------------------------------------------------
AEROSPACE & MISCELLANEOUS (5.5%)
Allied Signal 10,700 $ 622
General Dynamics 3,200 202
Lockheed Martin 8,000 645
Tyco International 28,300 1,093
United Technologies 7,100 785
----------------------------------------------------
Total Aerospace & Miscellaneous 3,347
------
AUTOMOTIVE (1.9%)
General Motors 12,000 651
Goodyear Tire & Rubber 3,600 188
Lear Seating* 9,700 320
- -------------------------------------------------------
Total Automotive 1,159
------
BANKS (3.6%)
Bank of Boston 9,600 464
BayBanks 1,000 105
Chase Manhattan 14,400 992
Cullen/Frost Bankers 3,400 167
Signet Banking 3,200 78
U.S. Bancorp 6,400 207
Wells Fargo 799 194
----------------------------------------------------
Total Banks 2,207
------
BUILDING & CONSTRUCTION (1.6%)
American Standard* 16,200 458
Foster Wheeler 8,200 379
Fluor 700 46
Masco 3,400 93
----------------------------------------------------
Total Building & Construction 976
------
MARKET
VALUE
SHARES (000)
- -------------------------------------------------------
CHEMICALS (2.5%)
Air Products & Chemicals 5,000 $ 286
E.I. du Pont de Nemours 4,800 386
Hercules 5,600 339
Monsanto 3,300 500
----------------------------------------------------
Total Chemicals 1,511
------
CONTAINERS & PACKAGING (0.7%)
Crown Cork and Seal* 9,570 438
----------------------------------------------------
Total Containers & Packaging 438
------
ELECTRICAL EQUIPMENT (0.1%)
Cooper Industries 1,700 72
----------------------------------------------------
Total Electrical Equipment 72
------
ENERGY (4.8%)
Amoco 9,200 671
Atlantic Richfield 2,400 283
Dresser Industries 5,200 166
Enron 7,400 298
Exxon 3,600 306
Kerr-McGee 2,200 140
Mobil 5,400 621
Schlumberger 3,000 265
Union Texas Petroleum 11,000 213
----------------------------------------------------
Total Energy 2,963
------
ENVIRONMENTAL SERVICES (0.6%)
WMX Technologies 11,400 396
----------------------------------------------------
Total Environmental Services 396
------
FINANCIAL SERVICES (6.0%)
American International Group 7,850 717
Chubb 3,500 331
Dean Witter Discover 600 33
Federal Home Loan Mortgage
Corporation 6,000 500
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
APRIL 30, 1996 13
<PAGE>
STATEMENT OF NET ASSETS INVENTOR FUNDS
MARKET
VALUE
EQUITY GROWTH FUND (cont'd) SHARES (000)
- -------------------------------------------------------
Federal National Mortgage
Association 2,200 $ 67
General Re 2,900 414
ITT Hartford Group 6,100 298
MGIC Investment 7,500 407
PMI Group 8,100 344
Travelers 9,300 572
----------------------------------------------------
Total Financial Services 3,683
------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS (9.7%)
Coca Cola 5,800 473
Colgate-Palmolive 2,100 161
CPC International 14,800 1,023
Duracell International 2,400 109
Gillette 3,300 178
Newell 14,100 402
PepsiCo 11,800 749
Philip Morris 10,900 982
Procter & Gamble 12,800 1,082
Ralston-Ralston Purina Group 4,800 280
Sara Lee 7,700 239
Sysco 7,300 235
----------------------------------------------------
Total Food, Beverage, Tobacco &
Household Products 5,913
------
MACHINERY (5.2%)
Deere 10,600 412
Emerson Electric 7,600 636
General Electric 16,800 1,302
General Signal 21,600 821
----------------------------------------------------
Total Machinery 3,171
------
MEDIA & LEISURE (6.3%)
Carnival 34,600 1,003
Marriott 9,500 463
Mattel 10,500 273
Tele-Communications, Cl A* 38,000 727
MARKET
VALUE
SHARES (000)
- -------------------------------------------------------
Viacom, Cl B* 18,100 $ 742
Walt Disney 9,976 618
- -------------------------------------------------------
Total Media & Leisure 3,826
------
MEDICAL PRODUCTS & SERVICES (13.3%)
Abbott Laboratories 8,000 325
Allergan 5,400 191
American Home Products 1,100 116
Amgen* 2,700 155
Boston Scientific* 3,000 129
Bristol-Myers Squibb 5,700 469
Bush Boake Allen* 5,500 149
Columbia/HCA Healthcare 14,120 750
Fisher Scientific International 4,400 164
Healthsouth Rehabilitation* 11,884 441
Johnson & Johnson 14,546 1,346
Medtronic 2,700 143
Merck 14,200 859
Pfizer 11,800 813
Pharmacia Upjohn ADR 8,400 321
Schering-Plough 600 34
SmithKline Beecham PLC 11,000 594
Tenet Healthcare* 18,200 373
Varian Associates 5,700 326
Vencor* 12,000 405
----------------------------------------------------
Total Medical Products & Services 8,103
------
METALS AND MINING (2.0%)
Alumax* 1,200 40
Aluminum Company of America 5,200 324
Molten Metal Technology* 14,000 452
Morton International 2,700 96
Worthington Industries 15,000 306
----------------------------------------------------
Total Metals and Mining 1,218
------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
14 APRIL 30, 1996
<PAGE>
STATEMENT OF NET ASSETS INVENTOR FUNDS
MARKET
VALUE
EQUITY GROWTH FUND (cont'd) SHARES (000)
- -------------------------------------------------------
PAPER & PAPER PRODUCTS (0.4%)
Kimberly-Clark 3,300 $ 240
----------------------------------------------------
Total Paper & Paper Products 240
------
PHOTOGRAPHIC EQUIPMENT & SUPPLIES (1.4%)
Eastman Kodak 3,600 275
Xerox 4,000 586
----------------------------------------------------
Total Photographic Equipment &
Supplies 861
------
RAILROADS (1.6%)
Burlington Northern Santa Fe 3,700 324
Consolidated Rail 1,700 119
Union Pacific 8,300 565
----------------------------------------------------
Total Railroads 1,008
------
RETAIL (7.0%)
Federated Department Stores* 16,700 557
General Nutrition* 7,300 142
Home Depot 27,200 1,289
Intimate Brands 10,500 222
McDonald's 25,000 1,197
Office Depot* 10,200 228
Safeway* 7,700 260
Wal-Mart Stores 17,200 411
----------------------------------------------------
Total Retail 4,306
------
TECHNOLOGY (11.0%)
AMP 2,000 90
Arrow Electronics* 8,900 446
Automatic Data Processing 3,500 136
Bay Networks* 6,100 192
Cisco Systems* 13,000 674
First Data 3,400 258
General Motors, Cl E 11,400 643
SHARES/FACE MARKET
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------
Hewlett Packard 4,200 $ 445
IBM 6,200 667
Intel 2,900 196
ITT* 8,100 493
Microsoft* 7,000 794
Motorola 9,600 588
Oracle* 14,050 474
Scientific-Atlanta 32,500 601
----------------------------------------------------
Total Technology 6,697
------
TRANSPORTATION (0.2%)
Southwest Airlines 5,000 149
----------------------------------------------------
Total Transportation 149
------
UTILITIES (3.3%)
Airtouch Communications* 7,100 222
Alltel 3,400 112
AT&T 18,400 1,127
BellSouth 3,000 120
Pacific Telesis Group 1,100 37
Texas Utilities 10,300 415
----------------------------------------------------
Total Utilities 2,033
------
- -------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $48,153) 54,277
- -------------------------------------------------------
REPURCHASE AGREEMENT (10.6%)
- -------------------------------------------------------
Paine Webber
5.320%, dated 04/30/96,
matures 05/01/96,
repurchase price $6,492,777,
(collateralized by FHLMC
REMIC, par value $7,205,000,
7.500%, matures 04/15/26,
market value $6,658,381) $6,463 6,463
- -------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $6,463) 6,463
- -------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
APRIL 30, 1996 15
<PAGE>
STATEMENT OF NET ASSETS INVENTOR FUNDS
MARKET
VALUE
EQUITY GROWTH FUND (cont'd) (000)
- -------------------------------------------------------
TOTAL INVESTMENTS (99.3%)
(Cost $54,616) $60,740
- -------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (0.7%) 421
- -------------------------------------------------------
NET ASSETS:
Portfolio shares of Class A ($.00001
par value - 2 billion authorized)
based on 4,822,286 outstanding
shares of beneficial interest 49,033
Accumulated net realized gain
on investments 6,004
Net unrealized appreciation
on investments 6,124
- -------------------------------------------------------
TOTAL NET ASSETS: (100.0%) $61,161
- -------------------------------------------------------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE - CLASS A $ 12.68
Maximum sales charge of 4.00% 0.53
-------
OFFERING PRICE PER SHARE - CLASS A(DAGGER) $ 13.21
=======
- -------------------------------------------------------
- ----------
* NON-INCOME PRODUCING SECURITY
(DAGGER) 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
FHLMC FEDERAL HOME LOAN MORTGAGE
PLC PUBLIC LIMITED CORPORATION
REMIC REAL ESTATE MORTGAGE INVESTMENT CONDUIT
FACE MARKET
INTERMEDIATE GOVERNMENT AMOUNT VALUE
SECURITIES FUND (000) (000)
- -------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS (54.2%)
- -------------------------------------------------------
FHLMC
5.200%, 11/15/99 $ 370 $ 369
5.750%, 05/15/06 497 484
5.250%, 09/15/06 720 702
5.750%, 03/15/07 298 290
5.750%, 05/15/07 2,308 2,165
7.500%, 08/01/07 6 6
6.000%, 08/15/07 400 381
6.250%, 11/15/07 360 356
7.500%, 12/01/09 TBA 3,000 3,031
6.500%, 11/01/10 968 940
8.500%, 09/01/16 35 37
7.500%, 05/01/17 674 667
8.500%, 06/01/17 213 222
9.000%, 07/15/20 87 89
6.000%, 05/15/21 1,000 953
9.250%, 06/01/23 128 134
7.000%, 05/01/24 1,224 1,183
8.500%, 12/01/24 TBA 1,000 1,031
7.000%, 07/01/25 1,950 1,883
7.000%, 09/01/25 3,886 3,755
7.000%, 10/01/25 1,977 1,910
FHLMC REMIC
8.000%, 11/15/99 2,000 2,064
5.200%, 09/15/05 500 487
4.950%, 01/15/09 100 99
4.750%, 07/25/11 500 493
6.000%, 06/15/19 500 476
8.700%, 02/15/20 500 511
8.500%, 10/15/20 2,000 2,057
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
16 APRIL 30, 1996
<PAGE>
STATEMENT OF NET ASSETS INVENTOR FUNDS
INTERMEDIATE FACE MARKET
GOVERNMENT AMOUNT VALUE
SECURITIES FUND (cont'd) (000) (000)
- -------------------------------------------------------
FNMA
7.610%, 05/01/96 (A) $ 560 $ 577
7.000%, 01/25/99 1,250 1,255
6.500%, 02/25/07 400 390
7.500%, 12/01/07 276 274
7.500%, 03/01/08 245 242
6.500%, 03/01/14 438 411
6.500%, 05/25/15 945 943
6.000%, 11/25/17 400 387
9.500%, 05/01/18 197 211
6.000%, 11/25/19 500 491
FNMA REMIC
6.750%, 01/25/06 500 491
7.500%, 08/25/07 1,000 1,009
8.130%, 01/25/20 1,086 1,105
8.250%, 10/25/20 120 122
GNMA
6.500%, 11/15/08 177 172
9.500%, 06/15/09 62 66
9.500%, 07/15/09 54 58
9.500%, 08/15/09 10 11
9.500%, 09/15/09 33 36
9.500%, 10/15/09 103 110
9.000%, 07/15/16 104 110
9.000%, 08/15/16 166 175
9.000%, 10/15/16 205 216
9.000%, 11/15/16 570 599
9.000%, 03/15/17 593 624
8.000%, 05/15/17 867 880
9.000%, 11/15/17 182 195
9.500%, 06/15/19 360 386
8.500%, 09/15/21 36 38
8.500%, 11/15/21 1,318 1,365
8.500%, 07/15/22 1,144 1,184
7.500%, 08/15/22 24 24
FACE MARKET
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------
8.000%, 08/15/22 $ 29 $ 30
7.500%, 12/15/22 1,262 1,248
8.500%, 08/15/22 178 185
7.500%, 02/15/23 146 145
7.500%, 04/15/23 1,360 1,345
7.500%, 05/15/23 473 468
7.500%, 06/15/23 568 561
7.500%, 07/15/23 400 396
7.000%, 10/15/23 853 823
7.000%, 11/15/23 310 299
7.000%, 12/01/23 359 347
8.000%, 02/15/24 1,921 1,946
8.000%, 11/15/25 30 31
- -------------------------------------------------------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS
(Cost $49,053) 48,756
- -------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (3.3%)
- -------------------------------------------------------
FNMA
5.390%, 08/05/98 3,000 2,939
- -------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $2,958) 2,939
- -------------------------------------------------------
U.S. TREASURY OBLIGATIONS (40.9%)
- -------------------------------------------------------
U.S. Treasury Bonds
11.880%, 11/15/03 1,500 1,959
12.000%, 08/15/13 1,100 1,554
U.S. Treasury Notes
8.880%, 11/15/97 (B) 6,200 6,464
7.000%, 04/15/99 10,000 10,202
7.750%, 11/30/99 3,000 3,132
10.750%, 02/15/03 11,000 13,470
- -------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $37,325) 36,781
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
APRIL 30, 1996 17
<PAGE>
STATEMENT OF NET ASSETS INVENTOR FUNDS
INTERMEDIATE FACE MARKET
GOVERNMENT AMOUNT VALUE
SECURITIES FUND (cont'd) (000) (000)
- -------------------------------------------------------
- -------------------------------------------------------
REPURCHASE AGREEMENT (5.5%)
- -------------------------------------------------------
Lehman Brothers
5.330%, dated 04/30/96,
matures 05/01/96,
repurchase price $4,926,729,
(collateralized by U.S.
Treasury STRIPS, par value
$10,060,000, matures
05/15/06, market value
$5,095,603) $4,926 $ 4,926
- -------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $4,926) 4,926
- -------------------------------------------------------
TOTAL INVESTMENTS (103.9%)
(Cost $94,262) 93,402
- -------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (-3.9%) (3,501)
- -------------------------------------------------------
NET ASSETS:
Portfolio shares of Class A ($.00001
par value - 2 billion authorized)
based on 8,952,005 outstanding
shares of beneficial interest 90,009
Accumulated net realized gain
on investments 752
Net unrealized depreciation
on investments (860)
- -------------------------------------------------------
TOTAL NET ASSETS: (100.0%) $89,901
- -------------------------------------------------------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE - CLASS A $10.04
Maximum sales charge of 4.00% 0.42
------
OFFERING PRICE PER SHARE - CLASS A(DAGGER) $10.46
======
- -------------------------------------------------------
- ----------
(DAGGER) THE 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. THE RATE REFLECTED ON
THE STATEMENT OF NET ASSETS IS THE RATE IN EFFECT ON APRIL 30, 1996.
THE DATE SHOWN IS THE LONGER OF THE RESET DATE OR THE DEMAND DATE.
(B) SECURITY HELD TO FULLY COLLATERALIZE TBA PURCHASE COMMITMENTS.
FHLMC FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA FEDERAL NATIONAL MORTGAGE ASSOCIATION
GNMA GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
REMIC REAL ESTATE MORTGAGE INVESTMENT CONDUIT
STRIPS SEPARATE TRADING OF REGISTERED INTEREST AND PRINCIPAL OF SECURITIES
TBA "TO BE ANNOUNCED" MORTGAGE BACKED SECURITY
FACE MARKET
GNMA AMOUNT VALUE
SECURITIES FUND (000) (000)
- -------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS (95.8%)
- -------------------------------------------------------
FHLMC
7.500%, 04/01/00 $ 255 $ 259
7.500%, 10/01/01 65 67
7.000%, 11/01/10 1,101 1,090
7.000%, 06/01/23 425 411
7.000%, 03/01/24 203 197
7.000%, 07/01/25 324 313
7.000%, 09/01/25 499 482
7.000%, 12/01/25 1,195 1,155
GNMA
7.250%, 11/15/04 220 215
7.000%, 10/15/07 307 306
7.000%, 05/15/08 306 304
7.000%, 01/15/09 22 23
7.000%, 02/15/09 163 163
7.000%, 03/15/09 273 272
9.000%, 05/15/09 839 878
6.500%, 06/15/09 46 45
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
18 APRIL 30, 1996
<PAGE>
STATEMENT OF NET ASSETS INVENTOR FUNDS
FACE MARKET
GNMA AMOUNT VALUE
SECURITIES FUND (cont'd) (000) (000)
- -------------------------------------------------------
9.000%, 06/15/09 $ 105 $ 110
9.500%, 07/15/09 169 181
9.500%, 08/15/09 500 534
9.500%, 09/15/09 29 31
9.500%, 10/15/09 6 6
9.500%, 11/15/09 40 44
10.000%, 11/15/09 360 396
10.000%, 12/15/09 31 35
6.500%, 10/15/10 85 83
6.500%, 11/15/10 890 868
7.000%, 12/15/10 1,963 1,952
11.500%, 01/15/13 34 39
11.500%, 02/15/13 70 80
11.500%, 03/15/13 28 32
11.500%, 05/15/13 66 75
7.500%, 06/15/13 310 307
11.500%, 06/15/13 83 97
11.500%, 07/15/13 23 26
11.500%, 08/15/13 5 6
11.250%, 08/15/15 204 231
11.500%, 06/15/15 48 55
11.500%, 10/15/15 42 48
9.500%, 12/15/15 11 12
11.500%, 01/15/16 18 21
9.500%, 03/15/16 133 145
9.000%, 06/15/16 77 81
9.500%, 07/15/16 4 5
9.500%, 08/15/16 164 178
9.000%, 08/20/16 2,070 2,159
10.250%, 08/20/16 30 32
9.500%, 09/15/16 180 194
9.500%, 10/15/16 16 18
9.500%, 11/15/16 39 42
8.500%, 01/15/17 164 170
9.500%, 01/15/17 16 18
8.500%, 02/15/17 199 207
FACE MARKET
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------
8.000%, 03/15/17 $ 16 $ 17
8.500%, 03/15/17 232 241
8.000%, 04/15/17 107 109
8.500%, 04/15/17 1,725 1,784
8.000%, 05/15/17 81 83
8.500%, 05/15/17 86 89
9.500%, 05/15/17 20 22
9.000%, 06/15/17 451 474
8.000%, 07/15/17 105 106
9.500%, 07/15/17 48 53
9.000%, 08/15/17 295 311
9.500%, 08/15/17 177 191
9.500%, 09/15/17 127 138
9.500%, 10/15/17 236 256
8.500%, 11/15/17 580 602
9.500%, 12/15/17 24 26
9.500%, 03/15/18 30 33
10.250%, 03/20/18 133 142
9.500%, 04/15/18 34 38
9.500%, 06/15/18 72 79
9.500%, 07/15/18 14 16
9.500%, 08/15/18 38 41
9.500%, 09/15/18 10 12
10.250%, 09/20/18 148 159
9.500%, 10/15/18 6 7
9.500%, 11/15/18 14 16
9.500%, 12/15/18 70 78
9.500%, 01/15/19 35 38
9.500%, 03/15/19 6 7
9.500%, 05/15/19 31 33
9.500%, 07/15/19 7 8
9.500%, 09/15/19 20 22
9.500%, 10/15/19 37 40
9.500%, 12/15/19 25 27
9.500%, 06/15/20 20 22
9.000%, 07/15/20 229 241
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
APRIL 30, 1996 19
<PAGE>
STATEMENT OF NET ASSETS INVENTOR FUNDS
FACE MARKET
GNMA AMOUNT VALUE
SECURITIES FUND (cont'd) (000) (000)
- -------------------------------------------------------
9.500%, 07/15/20 $ 32 $ 35
9.500%, 08/15/20 263 282
9.500%, 10/15/20 51 55
9.500%, 11/15/20 242 260
9.500%, 12/15/20 101 108
8.500%, 04/15/21 411 426
8.500%, 05/15/21 38 40
8.500%, 06/15/21 391 404
9.000%, 06/15/21 471 495
8.500%, 07/15/21 67 70
9.500%, 07/15/21 433 464
8.500%, 09/15/21 627 648
8.500%, 10/15/21 92 96
8.500%, 11/15/21 709 733
8.500%, 12/15/21 1,004 1,038
8.500%, 02/15/22 334 346
8.500%, 03/01/22 188 195
8.500%, 03/15/22 201 208
8.500%, 05/15/22 318 329
8.500%, 08/15/22 358 370
8.500%, 09/15/22 517 536
7.000%, 10/15/22 25 24
8.500%, 11/15/22 310 321
7.000%, 11/15/22 436 421
7.500%, 12/12/22 416 412
7.000%, 01/15/23 342 330
7.500%, 02/15/23 379 375
7.500%, 04/15/23 533 527
7.000%, 04/15/23 28 28
7.000%, 06/15/23 98 95
7.500%, 06/15/23 378 374
7.000%, 07/15/23 1,297 1,249
7.500%, 07/15/23 1,323 1,308
8.000%, 07/15/23 19 20
7.500%, 08/15/23 201 199
7.000%, 08/15/23 2,345 2,261
6.500%, 09/15/23 145 136
FACE MARKET
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------
7.000%, 09/15/23 $ 319 $ 308
6.500%, 10/15/23 1,101 1,032
7.000%, 10/15/23 2,430 2,344
7.500%, 10/15/23 1,753 1,734
7.000%, 11/15/23 448 432
7.000%, 12/15/23 575 555
6.500%, 12/15/23 498 467
6.000%, 12/20/23 446 405
7.000%, 01/15/24 667 644
7.500%, 01/15/24 819 810
7.000%, 02/15/24 1,452 1,401
7.500%, 02/15/24 377 373
8.000%, 02/15/24 21 21
7.000%, 03/15/24 41 40
7.500%, 04/15/24 377 373
8.000%, 04/15/24 1,796 1,820
6.500%, 05/15/24 28 27
7.000%, 05/15/24 615 593
7.500%, 06/15/24 551 545
8.000%, 06/15/24 254 258
8.000%, 08/15/24 92 94
8.000%, 09/15/24 1,328 1,347
8.000%, 06/15/25 63 65
8.000%, 07/15/25 477 484
7.000%, 08/15/25 44 43
8.000%, 08/15/25 1,639 1,663
7.000%, 09/15/25 1,204 1,160
8.000%, 09/15/25 49 50
8.000%, 10/15/25 3,227 3,271
8.000%, 11/15/25 556 565
6.500%, 02/15/26 267 251
8.000%, 02/15/26 84 85
8.000%, 03/15/26 794 806
- -------------------------------------------------------
TOTAL U.S. GOVERNMENT MORTGAGE-
BACKED OBLIGATIONS
(Cost $60,147) 59,543
- -------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
20 APRIL 30, 1996
<PAGE>
STATEMENT OF NET ASSETS INVENTOR FUNDS
FACE MARKET
GNMA AMOUNT VALUE
SECURITIES FUND (cont'd) (000) (000)
- -------------------------------------------------------
REPURCHASE AGREEMENT (4.1%)
- -------------------------------------------------------
Lehman Brothers
5.330%, dated 04/30/96,
matures 05/01/96,
repurchase price $2,562,379,
(collateralized by U.S.Treasury
STRIPS, par value $5,235,000,
matures 05/15/06,
market value $2,657,638) $2,562 $2,562
- -------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $2,562) 2,562
- -------------------------------------------------------
TOTAL INVESTMENTS (99.9%)
(Cost $62,709) 62,105
- -------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (0.1%) 56
- -------------------------------------------------------
NET ASSETS:
Portfolio shares of Class A ($.00001
par value - 2 billion authorized)
based on 6,142,810 outstanding
shares of beneficial interest 62,127
Accumulated net realized gain
on investments 638
Net unrealized depreciation
on investments (604)
- -------------------------------------------------------
TOTAL NET ASSETS: (100.0%) $62,161
- -------------------------------------------------------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE - CLASS A $10.12
Maximum sales charge of 4.00% 0.42
------
OFFERING PRICE PER SHARE - CLASS A(DAGGER) $10.54
======
- -------------------------------------------------------
- ----------
(DAGGER) 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 CORPORATION
GNMA GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
STRIPS SEPARATE TRADING OF REGISTERED INTEREST AND PRINCIPAL OF SECURITIES
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
APRIL 30, 1996 21
<PAGE>
STATEMENT OF NET ASSETS INVENTOR FUNDS
FACE MARKET
PENNSYLVANIA AMOUNT VALUE
MUNICIPAL FUND (000) (000)
- -------------------------------------------------------
MUNICIPAL BONDS (99.3%)
- -------------------------------------------------------
PENNSYLVANIA (99.3%)
Allegheny County, Hospital
Development Authority,
Magee Woman's Hospital
Project, Series O, RB,
Escrowed to Maturity
10.125%, 10/01/02 $ 125 $ 149
Allegheny County, Industrial
Development Authority,
RB
5.250%, 12/01/00 (B) 705 705
Allegheny County, Higher
Education Building Authority,
Duquesne University Project,
AMBAC, RB
6.500%, 06/01/96 (A) 380 423
Allegheny County, Sanitation
Authority, Sewer Revenue,
FGIC, RB
5.728%, 12/01/08 (D) 2,750 1,351
Bradford Area School District,
FGIC, GO
5.250%, 10/01/07 1,000 998
Bucks County, Water & Sewer
Authority , FGIC, RB
6.150%, 12/01/05 455 475
Butler County, Sewer Authority,
RB, Pre-refunded at 100
7.250%, 01/01/04 (C) 120 130
Cumberland County, Messiah
College Project, AMBAC, RB
5.000%, 10/01/07 1,000 965
Dauphin County, General
Authority Health Center, RB
5.150%, 01/01/97 1,000 1,001
FACE MARKET
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------
Delaware County, Education
Development Authority,
Villanova University Project, RB,
Pre-refunded at 102
7.750%, 08/01/98 (C) $1,000 $1,093
Delaware River Port Authority,
PA & NJ Bridges, AMBAC, RB
7.375%, 01/01/07 1,500 1,614
Delaware River Port Authority
PA & NJ Bridges, RB,
Escrowed to Maturity
6.000%, 01/15/10 655 665
Erie County, Prison Authority,
MBIA, RB, Pre-refunded
at 100
6.600%, 11/01/01 (C) 1,000 1,091
Greene County, Industrial
Development Authority,
Pollution Control, RB
6.100%, 02/01/07 125 126
Lancaster County,
FGIC, GO
6.100%, 07/01/01 100 100
5.900%, 07/01/99 500 501
Lehigh County,
Series A, AMBAC, GO,
Pre-refunded at 100
6.000%, 10/15/99 (C) 1,250 1,309
Lower Providence Township,
MBIA, GO
5.000%, 05/01/07 215 206
Middletown Township,
Bucks County, SB,
Escrowed to Maturity
6.100%, 10/01/00 380 399
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
22 APRIL 30, 1996
<PAGE>
STATEMENT OF NET ASSETS INVENTOR FUNDS
FACE MARKET
PENNSYLVANIA AMOUNT VALUE
MUNICIPAL FUND (cont'd) (000) (000)
- -------------------------------------------------------
Monroeville, Hospital Authority,
East Suburban Health Center
Project, RB,
Pre-refunded at 100
7.600%, 07/01/04 (C) $ 895 $1,009
Montgomery County, Hospital
Authority, Suburban General
Hospital Project, RB,
Escrowed to Maturity
7.750%, 05/01/02 180 197
Northampton County, Higher
Education Authority,
Lehigh University Project, RB
5.500%, 09/01/98 1,030 1,053
Pennsylvania Housing Finance
Agency, Rental Housing, RB
5.150%, 07/01/03 400 399
5.000%, 01/01/98 450 453
Pennsylvania Housing Finance
Agency, Single Family Mortgage,
Series Z, RB
7.000%, 10/01/02 50 53
Pennsylvania Infrastructure
Investment Authority Pennvest,
Subseries B, RB
6.450%, 09/01/04 1,500 1,633
Pennsylvania State
Intergovernmental Co-Op Authority
Special Tax, City of Philadelphia
Funding Project, RB,
Pre-refunded at 100
6.800%, 06/15/02 (C) 1,500 1,657
Pennsylvania State,
Series 1, GO
6.200%, 09/15/04 900 957
Pennsylvania State,
Series 2, GO
4.750%, 06/15/98 565 571
FACE MARKET
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------
Pennsylvania State Higher
Education Authority,
Series N, MBIA, RB
5.250%, 06/15/08 $ 405 $ 397
Pennsylvania State Higher
Education Authority, Student
Loan, Series A, FGIC, RB
6.800%, 12/01/00 100 107
Pennsylvania State Higher
Educational Facilities Authority,
University of Pennsylvania
Project, Series A, RB
6.500%, 09/01/04 250 275
5.550%, 09/01/09 1,300 1,293
Pennsylvania State Higher
Educational Facilities Authority,
University of Pennsylvania
Project, Series B, RB
5.250%, 01/01/07 100 99
Pennsylvania Housing Finance
Agency, Single Family Mortgage,
Series P, RB
7.200%, 04/01/00 50 53
Pennsylvania State Turnpike
Commission, Series O, FGIC, RB
5.250%, 12/01/01 1,010 1,030
Pennsylvania State Turnpike
Commission, Series D, FGIC, RB,
Escrowed to Maturity
6.700%, 12/01/97 1,100 1,148
Pennsylvania State Turnpike
Commission, Series K, RB,
Escrowed to Maturity
7.250%, 12/01/99 1,230 1,341
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
APRIL 30, 1996 23
<PAGE>
STATEMENT OF NET ASSETS INVENTOR FUNDS
FACE MARKET
PENNSYLVANIA AMOUNT VALUE
MUNICIPAL BOND FUND (cont'd) (000) (000)
- -------------------------------------------------------
Philadelphia Gas Works,
Series 13, RB,
Pre-refunded at 102
7.700%, 06/15/01 (C) $ 460 $ 530
Philadelphia Gas Works,
Series 14, FSA, RB
6.250%, 07/01/08 300 321
Philadelphia, Graduate Hospital
Project, RB, Escrowed to Maturity
7.000%, 07/01/10 335 363
Philadelphia, Hospital & Higher
Educational Facilities Authority,
Children's Hospital Project,
Series A, RB, Pre-refunded
at 102
6.500%, 02/15/02 (C) 200 220
Philadelphia School District,
Series A, GO, MBIA
5.800%, 07/01/08 465 476
Philadelphia, Hospital & Higher
Educational Authority, Children's
Hospital Project, Series A, RB
5.100%, 02/15/03 500 501
Philadelphia, Thomas Jefferson
University Hospital, RB,
Escrowed to Maturity
7.000%, 07/01/08 180 198
Philadelphia, Water & Waste
Authority, MBIA, RB
5.500%, 06/15/07 1,500 1,526
Pittsburgh,
Series A, GO, MBIA
5.500%, 09/01/06 955 968
Pittsburgh & Allegheny County,
Pennsylvania Auditorium
Authority, RB
6.400%, 12/01/01 800 801
FACE MARKET
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------
Scranton-Lackawanna, Health &
Welfare Authority, RB,
Escrowed to Maturity
6.625%, 07/01/09 $ 570 $ 603
Seneca Valley School District,
Series A, FGIC, GO
5.700%, 07/01/06 1,000 1,022
Southeastern Pennsylvania
Transportation Authority,
Lease Project, RB
5.750%, 12/01/04 775 776
Swarthmore Borough, College
Authority, RB
6.000%, 09/15/06 855 899
Tyrone School District,
GO, MBIA
5.700%, 09/15/08 1,250 1,258
Union City, Higher Educational
Facilities Financing Authority,
Bucknell University
Project, MBIA, RB
6.200%, 04/01/06 1,000 1,055
- -------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $38,160) 38,543
- -------------------------------------------------------
TOTAL INVESTMENTS (99.3%)
(Cost $38,160) 38,543
- -------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (0.7%) 266
- -------------------------------------------------------
NET ASSETS:
- -------------------------------------------------------
Portfolio shares of Class A ($.00001
par value - 2 billion authorized)
based on 3,835,561 outstanding
shares of beneficial interest 38,352
Accumulated net realized gain
on investments 74
Net unrealized appreciation
on investments 383
- -------------------------------------------------------
TOTAL NET ASSETS: (100.0%) $38,809
- -------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
24 APRIL 30, 1996
<PAGE>
STATEMENT OF NET ASSETS INVENTOR FUNDS
PENNSYLVANIA
MUNICIPAL BOND FUND (cont'd)
- -------------------------------------------------------
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE - CLASS A $10.12
Maximum sales charge of 4.00% 0.42
------
OFFERING PRICE PER SHARE - CLASS A(DAGGER) $10.54
======
- -------------------------------------------------------
- ----------
(DAGGER) THE 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 APRIL 30, 1996. THE
DATE SHOWN IS THE LONGER OF THE RESET DATE OR THE DEMAND DATE.
(B) SECURITY IS BACKED BY A LETTER OF CREDIT.
(C) PRE-REFUNDED SECURITY -- THE MATURITY DATE SHOWN IS THE PRE-REFUNDED
DATE.
(D) THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS REPRESENTS THE
SECURITY'S EFFECTIVE YIELD.
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
FGIC FEDERAL GUARANTY INSURANCE CORPORATION
FSA FINANCIAL SECURITY ASSURANCE
GO GENERAL OBLIGATION
MBIA MUNICIPAL BOND INSURANCE ASSOCIATION
RB REVENUE BOND
SB SPECIAL OBLIGATION BOND
FACE
PRIME OBLIGATIONS AMOUNT VALUE
MONEY MARKET FUND (000) (000)
- -------------------------------------------------------
COMMERCIAL PAPER (54.9%)
- -------------------------------------------------------
Associates Corporation of
North America
5.200%, 05/03/96 $10,000 $9,997
Bear Stearns Companies
5.250%, 05/03/96 10,000 9,997
CIESCO
5.220%, 05/03/96 10,000 9,997
Coca-Cola Enterprises
5.150%, 05/06/96 (B) 10,000 9,993
FACE
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------
Commercial Credit Corporation
5.230%, 05/03/96 $10,000 $ 9,997
Ford Motor Credit
5.330%, 05/02/96 10,000 9,998
General Electric Capital
5.320%, 05/02/96 10,000 9,998
General Motors Acceptance
5.400%, 05/02/96 4,000 3,999
Goldman Sachs
5.280%, 05/06/96 10,000 9,993
IBM Credit
5.230%, 05/06/96 10,000 9,993
John Deere Capital
5.190%, 05/06/96 10,000 9,993
McKenna Triangle
5.230%, 05/06/96 (B) 10,000 9,993
Merrill Lynch
5.250%, 05/02/96 10,000 9,999
Norwest Financial Corporation
5.230%, 05/03/96 10,000 9,997
Prudential Funding
5.270%, 05/02/96 10,000 9,999
Smith Barney
5.250%, 05/06/96 10,000 9,993
Travelers
5.320%, 05/06/96 10,000 9,993
- -------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost $163,929) 163,929
- -------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (30.3%)
- -------------------------------------------------------
FFCB
5.256%, 05/06/96 12,000 11,991
FHLB
5.270%, 05/01/96 9,350 9,350
FHLMC 5.247%, 05/06/96 10,000 9,993
5.256%, 05/06/96 18,904 18,890
5.267%, 05/06/96 40,000 39,971
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
APRIL 30, 1996 25
<PAGE>
STATEMENT OF NET ASSETS INVENTOR FUNDS
FACE
PRIME OBLIGATIONS AMOUNT VALUE
MONEY MARKET FUND (cont'd) (000) (000)
- -------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $90,195) $90,195
- -------------------------------------------------------
CERTIFICATES OF DEPOSIT (3.7%)
- -------------------------------------------------------
First Bank of South Dakota
5.468%, 05/06/96 (A) $6,000 6,000
FNB Maryland
5.750%, 05/01/96 5,000 5,000
- -------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $11,000) 11,000
- -------------------------------------------------------
REPURCHASE AGREEMENTS (11.5%)
- -------------------------------------------------------
Lehman Brothers
5.330%, dated 04/30/96,
matures 05/01/96,
repurchase price $15,002,221,
(collateralized by U.S. Treasury
STRIPS, par value $30,630,000,
matures 05/15/06, market
value $15,514,743) 15,000 15,000
J.P. Morgan
5.310%, dated 04/30/96,
matures 05/01/96, repurchase
price $19,148,824,
(collateralized by U.S. Treasury
Bond, par value $15,408,000,
9.125%, matures 05/15/18,
market value $19,548,741) 19,146 19,146
- -------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $34,146) 34,146
- -------------------------------------------------------
TOTAL INVESTMENTS (100.4%)
(Cost $299,270) 299,270
- -------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (-0.4%) (1,118)
- -------------------------------------------------------
VALUE
(000)
- -------------------------------------------------------
NET ASSETS:
Portfolio shares of Class A ($.00001
par value - 2 billion authorized)
based on 298,151,867 outstanding
shares of beneficial interest $298,152
- -------------------------------------------------------
TOTAL NET ASSETS: (100.0%) $298,152
- -------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE - CLASS A $1.00
- -------------------------------------------------------
- ----------
(A) FLOATING RATE INSTRUMENT WITH DEMAND FEATURES. THE RATE REFLECTED ON THE
STATEMENT OF NET ASSETS IS THE RATE IN EFFECT ON APRIL 30, 1996. THE DATE
SHOWN IS THE LONGER OF THE RESET DATE OR THE DEMAND DATE.
(B) SECURITY SOLD WITHIN THE TERMS OF A PRIVATE PLACEMENT MEMORANDUM, EXEMPT
FROM REGISTRATION UNDER SECTIONS 4-2 OR 144A OF THE SECURITIES ACT OF 1993,
AS AMENDED, AND MAY BE SOLD ONLY TO DEALERS IN THAT PROGRAM OR OTHER
"ACCREDITED INVESTORS."
FFCB FEDERAL FARM CREDIT BANK
FHLB FEDERAL HOME LOAN BANK
FHLMC FEDERAL HOME LOAN MORTGAGE ASSOCIATION
STRIPS SEPARATE TRADING OF REGISTERED INTEREST AND PRINCIPAL OF SECURITIES
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
26 APRIL 30, 1996
<PAGE>
STATEMENT OF NET ASSETS INVENTOR FUNDS
FACE
TREASURY SECURITIES AMOUNT VALUE
MONEY MARKET FUND (000) (000)
- -------------------------------------------------------
U.S. TREASURY OBLIGATIONS (67.6%)
- -------------------------------------------------------
U.S. Treasury Bills
5.290%, 05/02/96 $80,000 $79,989
5.876%, 05/30/96 19,000 18,915
U.S. Treasury Note
4.375%, 08/15/96 5,000 4,981
- -------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $103,885) 103,885
- -------------------------------------------------------
REPURCHASE AGREEMENTS (32.8%)
- -------------------------------------------------------
Aubrey G. Lanston
5.320%, dated 04/30/96,
matures 05/01/96,
repurchase price $10,410,538,
(collateralized by U.S.Treasury
Note, par value $9,935,000,
matures 07/15/98, market
value $10,608,342) 10,409 10,409
Chase Manhattan Bank
5.330%, dated 04/30/96,
matures 05/01/96,
repurchase price $15,002,221,
(collateralized by U.S. Treasury
Note, par value $15,825,000,
5.750%, matures 08/15/03,
market value $15,300,362) (A) 15,000 15,000
Lehman Brothers
5.350%, dated 04/30/96,
matures 05/01/96,
repurchase price $25,003,715,
(collateralized by various
U.S. Treasury Notes, total par
value $24,448,000, 6.875%-
8.000%, 07/31/99-08/31/99,
total market value
$25,495,358) (A) 25,000 25,000
VALUE
(000)
- -------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $50,409) $50,409
TOTAL INVESTMENTS (100.4%)
(Cost $154,294) 154,294
- -------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (-0.4%) (591)
- -------------------------------------------------------
NET ASSETS:
Portfolio shares of Class A ($.00001
par value - 2 billion authorized)
based on 153,691,730 outstanding
shares of beneficial interest 153,692
Accumulated net realized gain
on investments 11
- -------------------------------------------------------
TOTAL NET ASSETS: (100.0%) $153,703
- -------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE - CLASS A $1.00
- -------------------------------------------------------
- ----------
(A) TRI-PARTY REPURCHASE AGREEMENT.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
APRIL 30, 1996 27
<PAGE>
STATEMENT OF NET ASSETS INVENTOR FUNDS
FACE
PENNSYLVANIA TAX-EXEMPT AMOUNT VALUE
MONEY MARKET FUND (000) (000)
- -------------------------------------------------------
MUNICIPAL BONDS (101.4%)
- -------------------------------------------------------
PENNSYLVANIA (101.4%)
Allegheny County, Higher
Education Authority,
Duquesne University
Project, AMBAC, RB
3.350%, 03/01/97 $ 640 $ 640
Allegheny County, Higher
Education Building Authority,
University of Pittsburgh
Project, Series 85B
4.000%, 05/02/96 (A) (C) 100 100
Allegheny County, Hospital
Development Authority,
Series D, RB
4.050%, 05/01/96 (A) (C) 200 200
Allegheny County,
Series C-41, GO
4.100%, 05/02/96 (A) 900 900
Allegheny County,
Series C-44, FGIC, GO
4.000%, 06/01/96 685 685
Beaver County, Industrial
Development Authority,
Duquesne Light and Power
Project, Series C, TECP
3.400%, 09/10/96 (C) 1,500 1,500
3.800%, 05/01/96 (C) 1,300 1,300
Berks County, Industrial
Development Authority,
Rilsaw Industrial Project
4.225%, 05/02/96 (A) (C) 2,050 2,050
Bucks County, Industrial
Development Authority,
CPC International Project,
Series 85, RB
3.880%, 05/01/96 (A) 2,000 2,000
FACE
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------
Bucks County, Industrial
Development Authority,
USX Corporation Project
3.700%, 05/01/96 (A) (C) $ 390 $ 390
Chartiers Valley, Commercial
Development Authority,
Sycamore Creek Project, RB
3.150%, 09/01/96 (A) (C) 1,805 1,805
Chester County, Hospital
Authority, Paoli Memorial
Hospital Project, RB,
Pre-refunded at 102
7.625%, 10/01/96 (B) 950 985
Clarks Summit-South Abington,
Sewer Authority, AMBAC, RB,
Pre-refunded at 100
8.125%, 01/01/97 (B) 500 515
Cumberland County, Municipal
Authority, United Methodist
Homes Aging Project, RB
3.950%, 07/03/96 (A) (C) 1,500 1,500
Danville, School District Authority,
MBIA, GO, Pre-refunded at 100
6.650%, 05/01/96 (B) 100 100
Delaware County, Industrial
Development Authority,
British Petroleum Project, RB
4.100%, 05/01/96 (A) 300 300
Delaware County, Industrial
Development Authority,
Henderson/Radnor Joint Venture
Project, RB
4.350%, 05/02/96 (A) (C) 1,150 1,150
Delaware County, PECO
Energy Project, FGIC, TECP
3.450%, 05/06/96 1,100 1,100
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
28 APRIL 30, 1996
<PAGE>
STATEMENT OF NET ASSETS INVENTOR FUNDS
FACE
PENNSYLVANIA TAX-EXEMPT AMOUNT VALUE
MONEY MARKET FUND (cont'd) (000) (000)
- -------------------------------------------------------
Delaware Valley, Regional
Finance Authority,
Series D, RB
4.250%, 05/07/96 (A) (C) $ 800 $ 800
Delaware Valley, Regional
Finance Authority
4.250%, 05/07/96 (A) (C) 2,200 2,200
Dover Township, Sewer
Authority, MBIA, RB
3.500%, 11/01/96 285 285
East Penn, School District
Authority, Series A, FGIC, GO
3.500%, 09/01/96 400 400
Easton,
Series A, FGIC, GO
4.500%, 12/01/96 300 302
Elizabeth Forward, School District
Authortiy, GO, MBIA
Pre-refunded at 100
8.000%, 05/01/96 (B) 500 500
Erie County, Hospital Authority,
Union City Memorial Hospital
Project, RB
4.200%, 05/02/96 (A) (C) 1,200 1,200
Greater Johnstown, School District
Authority, GO, MBIA,
Escrowed to Maturity
6.350%, 02/01/97 100 102
Hempfield Township, Sewer
Authority, Westmoreland County
Project, FGIC, RB
4.300%, 09/01/96 530 532
Lackawanna, River Basin
Authority, AMBAC, RB
3.500%, 09/01/96 910 910
Lancaster, Higher Education
Authority, Franklin and
Marshall Project, RB
3.850%, 05/01/96 (A) 1,550 1,550
FACE
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------
Lehigh County, Water and
Sewer Authority,
Series B, FGIC, RB
4.100%, 05/01/96 (A) $ 430 $ 430
Lehigh County, Water
Authority, FGIC, RB
4.100%, 05/01/96 (A) (C) 835 835
Millcreek Township, School
District Authority,
Series B, FGIC, GO,
Pre-refunded at 100
7.100%, 08/15/96 (B) 175 177
Montgomery County, Higher
Education & Health Authority,
Frankford Hospital Project,
RB, Pre-refunded at 102
7.875%, 01/01/97 (B) 1,000 1,047
Montgomery County, Hospital
Authority, Abington Memorial
Hospital Project, RB,
Pre-refunded at 103
8.000%, 06/01/96 (B) 2,800 2,893
Montgomery County, Industrial
Development Authority,
Ikea Property Project, RB
4.150%, 05/02/96 (A) 1,500 1,500
Montgomery County, Industrial
Development Authority, Merck & Co.
Nashville
4.600%, 05/02/96 (A) 1,000 1,000
Montgomery County, Industrial
Development Authority, PECO
Energy Project, TECP
3.400%, 07/24/96 (C) 300 300
Montgomery County, Industrial
Development Authority, Plymouth
Woods Project, RB
4.150%, 05/02/96 (A) (C) 500 500
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
APRIL 30, 1996 29
<PAGE>
FACE
PENNSYLVANIA TAX-EXEMPT AMOUNT VALUE
MONEY MARKET FUND (cont'd) (000) (000)
- -------------------------------------------------------
Montgomery County, Industrial
Development Authority,
Valley Square Project
4.200%, 05/01/96 (A) (C) $1,000 $1,000
Montgomery County, Industrial
Development Authority, Valley
Square Project, RB
4.250%, 05/01/96 (A) (C) 1,400 1,400
Moon Township, Industrial
Development Authority,
Executive Office Association
Project, RB (A) (C)
4.150%, 05/02/96 (A) (C) 1,500 1,500
North Umberland County,
Industrial Development
Authority, Atlas Development
Association (A) (C)
4.150%, 05/02/96 (A) (C) 840 840
Pennsylvania Intergovernment
Co-op Authority, Special Tax
Revenue, City of Philadelphia
Funding Project, FGIC, RB
5.200%, 06/15/96 (C) 300 300
Pennsylvania State, Higher
Education Facilities Authority,
Thomas Jefferson University
Project, Series B, RB
3.300%, 08/26/96 3,500 3,500
Pennsylvania State, Infrastructure
Investment Authority, Penvest
Loan Pool Program, RB
4.050%, 05/01/96 (A) 100 100
Pennsylvania State,
Intergovernment Co-op Authority,
Special Tax Revenue,
City of Philadelphia Funding
Project, FGIC, RB
3.750%, 06/15/96 600 600
FACE
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------
Pennsylvania State,
Series 2, GO,
Pre-refunded at 101.5
7.250%, 05/01/96 (B) $ 250 $ 254
Philadelphia,
Series A, GO, TRAN
4.500%, 06/27/96 1,000 1,001
Philadelphia, Gas Works
Authority, Eleventh Project,
Series C, AMBAC, RB
6.700%, 01/01/97 100 102
Philadelphia, Gas Works
Authority, Tenth Series, RB,
Pre-refunded at 102
7.200%, 07/01/96 (B) 2,100 2,155
Philadelphia, Hospital & Higher
Education Authority, MR Project,
RB, Pre-refunded at 102
8.625%, 08/01/96 (B) 1,500 1,547
Philadelphia, Industrial
Development Authority,
Multi-Family Housing For
Harbor View Towers
Project, RB
4.400%, 05/02/96 (A) (C) 2,650 2,650
Philadelphia, Redevelopment
Authority, Pennsylvania School
For Deaf Project, RB
4.000%, 05/07/96 (A) (C) 2,405 2,405
Philadelphia, Redevelopment
Authority, Rivers Edge Project, RB
4.700%, 05/01/96 (A) (C) 1,000 1,000
Philadelphia, School District
Authority, GO, TRAN
4.500%, 06/28/96 2,000 2,002
Philadelphia, School District
Authority, Series A, GO, MBIA
4.000%, 07/01/96 1,500 1,502
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
30 APRIL 30, 1996
<PAGE>
STATEMENT OF NET ASSETS INVENTOR FUNDS
FACE
PENNSYLVANIA TAX-EXEMPT AMOUNT VALUE
MONEY MARKET FUND (cont'd) (000) (000)
- -------------------------------------------------------
Philadelphia, Water & Sewer
Authority, Series 12, RB,
Pre-refunded at 101
7.250%, 07/01/96 (B) $ 200 $ 203
Pittsburgh, Equipment Leasing
Authority, AMBAC, RB
5.950%, 07/01/96 300 301
Pittsburgh, Water & Sewer
Authority, Series A, FGIC, RB
3.500%, 09/01/96 550 550
Sayre, Health Care Facilities
Authority, VHR, Capital Finance
Project, Series F, AMBAC, RB
4.000%, 05/01/96 (A) 1,100 1,100
Schuylkill County, Industrial
Development Authority, Gilberton
Power Project, RB
4.250%, 05/01/96 (A) (C) 2,900 2,900
Schuylkill County, Industrial
Development Authority,
Northeastern Power Company
Project, RB
4.200%, 05/01/96 (A) (C) 1,500 1,500
Schuylkill County, Industrial
Development Authority,
Westwood Energy Project, RB
4.300%, 05/01/96 (A) (C) 1,940 1,940
Scranton - Lackawana, Health
and Welfare Authority,
University of Scranton
Project, RB
3.650%, 11/01/96 (C) 1,500 1,500
Shaler Township, TRAN
3.810%, 12/31/96 1,200 1,202
Warren County, Hospital
Authority, Warren General
Hospital Project, RB
4.150%, 05/02/96 (A) (C) 1,000 1,000
FACE
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------
Whitehall Township, TRAN
3.930%, 12/31/96 $ 700 $ 701
- -------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $71,438) 71,438
- -------------------------------------------------------
TOTAL INVESTMENTS (101.4%)
(Cost $71,438) 71,438
- -------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET (-1.4%) (1,016)
- -------------------------------------------------------
NET ASSETS:
Portfolio shares of Class A ($.00001
par value - 2 billion authorized)
based on 70,421,774 outstanding
shares of beneficial interest 70,422
- -------------------------------------------------------
TOTAL NET ASSETS: (100.0%) $70,422
- -------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE - CLASS A $1.00
- -------------------------------------------------------
- ----------
(A) FLOATING RATE INSTRUMENT WITH DEMAND FEATURES. THE RATE REFLECTED ON THE
STATEMENT OF NET ASSETS IS THE RATE IN EFFECT ON APRIL 30, 1996. THE
DATE SHOWN IS THE LONGER OF THE RESET DATE OR THE DEMAND DATE.
(B) PRE-REFUNDED SECURITY THE MATURITY DATE SHOWN IS THE PRE-REFUNDED DATE.
(C) SECURITY IS BACKED BY A LETTER OF CREDIT.
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
FGIC FEDERAL GUARANTY INSURANCE CORPORATION
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.
- --------------------------------------------------------------------------------
APRIL 30, 1996 31
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED APRIL 30, 1996
<TABLE>
<CAPTION>
EQUITY INTERMEDIATE GNMA
GROWTH GOVERNMENT SECURITIES
FUND SECURITIES FUND FUND
(000) (000) (000)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends ............................................ $ 885 $ -- $ --
Interest.............................................. 295 6,072 3,937
------- ------- -------
Total investment income ............................ 1,180 6,072 3,937
------- ------- -------
EXPENSES:
Investment advisory fees.............................. 462 603 385
12b-1 fees............................................ 136 215 138
Administrative fees................................... 98 155 99
Transfer agent fees & expenses........................ 22 27 22
Registration & filing fees............................ 3 15 8
Custody fees.......................................... 26 18 30
Trustee fees.......................................... 3 4 3
Miscellaneous fees.................................... 27 40 28
------- ------- -------
Total expenses...................................... 777 1,077 713
Less: Expenses waived............................... (260) (345) (245)
------- ------- -------
Total net expenses.................................. 517 732 468
------- ------- -------
NET INVESTMENT INCOME.................................... 663 5,340 3,469
------- ------- -------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gain (loss) on investments............... 9,920 1,517 1,611
Net change in unrealized appreciation (depreciation)
on investments...................................... 3,376 (1,492) (1,242)
------- ------- -------
Net realized and unrealized gain (loss)
on investments.................................... 13,296 25 369
------- ------- -------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..... $13,959 $ 5,365 $ 3,838
======= ======= =======
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
32 APRIL 30, 1996
<PAGE>
INVENTOR FUNDS
<TABLE>
<CAPTION>
PRIME TREASURY PENNSYLVANIA
PENNSYLVANIA OBLIGATIONS SECURITIES TAX-EXEMPT
MUNICIPAL BOND MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND FUND
(000) (000) (000) (000)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends ............................................ $ -- $ -- $ -- $ --
Interest.............................................. 1,894 16,896 7,778 2,651
------- ------- ------- -------
Total investment income ............................ 1,894 16,896 7,778 2,651
------- ------- ------- -------
EXPENSES:
Investment advisory fees.............................. 265 1,305 609 311
12b-1 fees............................................ 95 725 338 173
Administrative fees................................... 68 435 203 104
Transfer agent fees & expenses........................ 17 65 36 24
Registration & filing fees............................ 2 5 31 6
Custody fees.......................................... 3 20 32 10
Trustee fees.......................................... 2 17 6 3
Miscellaneous fees.................................... 18 107 72 32
------- ------- ------- -------
Total expenses...................................... 470 2,679 1,327 663
Less: Expenses waived............................... (149) (1,084) (583) (283)
------- ------- ------- -------
Total net expenses.................................. 321 1,595 744 380
------- ------- ------- -------
NET INVESTMENT INCOME.................................... 1,573 15,301 7,034 2,271
------- ------- ------- -------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gain (loss) on investments............... 74 -- (3) --
Net change in unrealized appreciation (depreciation)
on investments...................................... 179 -- -- --
------- ------- ------- -------
Net realized and unrealized gain (loss)
on investments.................................... 253 -- (3) --
------- ------- ------- -------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..... $ 1,826 $15,301 $ 7,031 $ 2,271
======= ======= ======= =======
</TABLE>
- --------------------------------------------------------------------------------
33 APRIL 30, 1996
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT
EQUITY GROWTH FUND SECURITIES FUND
5/1/95 8/10/94(1) 5/1/95 8/10/94(1)
TO 4/30/96 TO 4/30/95 TO 4/30/96 TO 4/30/95
(000) (000) (000) (000)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income................................... $ 663 $ 513 $ 5,340 $ 2,251
Net realized gain (loss) on investments................. 9,920 556 1,517 (362)
Net change in unrealized appreciation (depreciation)
on investments. 3,376 2,748 (1,492) 632
------- ------- ------- -------
Net increase resulting from operations................ 13,959 3,817 5,365 2,521
------- ------- ------- -------
DIVIDENDS DISTRIBUTED FROM:
Net investment income................................... (663) (513) (5,340) (2,251)
Net realized gains...................................... (4,387) (85) (403) --
------- ------- ------- -------
Total dividends distributed........................... (5,050) (598) (5,743) (2,251)
------- ------- ------- -------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued............................. 10,851 55,864 47,044 66,686
Reinvestment of cash distributions...................... 198 1 64 2
Cost of shares repurchased.............................. (5,454) (12,427) (10,145) (13,642)
------- ------- ------- -------
Increase in net assets derived from capital
share transactions.... 5,595 43,438 36,963 53,046
------- ------- ------- -------
Net increase in net assets................................. 14,504 46,657 36,585 53,316
------- ------- ------- -------
NET ASSETS:
Beginning of period..................................... 46,657 -- 53,316 --
------- ------- ------- -------
End of period........................................... $61,161 $46,657 $89,901 $53,316
======= ======= ======= =======
CAPITAL SHARE TRANSACTIONS:
Capital shares outstanding at beginning of period.......... 4,363 -- 5,319 --
Shares issued........................................... 903 5,577 4,610 6,685
Shares issued in lieu of cash distributions............. 17 -- 6 --
Shares repurchased...................................... (461) (1,214) (983) (1,366)
------- ------- ------- -------
Increase derived from capital share transactions...... 459 4,363 3,633 5,319
------- ------- ------- -------
Capital shares outstanding at end of period................ 4,822 4,363 8,952 5,319
======= ======= ======= =======
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
34 APRIL 30, 1996
<PAGE>
INVENTOR FUNDS
<TABLE>
<CAPTION>
PENNSYLVANIA MUNICIPAL
GNMA SECURITIES FUND BOND FUND
5/1/95 8/10/94(1) 5/1/95 8/10/94(1)
TO 4/30/96 TO 4/30/95 TO 4/30/96 TO 4/30/95
(000) (000) (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income................................... $ 3,469 $ 1,954 $ 1,573 $ 972
Net realized gain (loss) on investments................. 1,611 80 74 --
Net change in unrealized appreciation (depreciation)
on investments. (1,242) 638 179 204
------- ------- ------- -------
Net increase resulting from operations................ 3,838 2,672 1,826 1,176
------- ------- ------- -------
DIVIDENDS DISTRIBUTED FROM:
Net investment income................................... (3,469) (1,954) (1,573) (972)
Net realized gains...................................... (1,053) -- -- --
------- ------- ------- -------
Total dividends distributed........................... (4,522) (1,954) (1,573) (972)
------- ------- ------- -------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued............................. 24,292 48,509 6,604 38,051
Reinvestment of cash distributions...................... 83 1 2 --
Cost of shares repurchased.............................. (3,742) (7,016) (2,688) (3,617)
------- ------- ------- -------
Increase in net assets derived from capital
share transactions.... 20,633 41,494 3,918 34,434
------- ------- ------- -------
Net increase in net assets................................. 19,949 42,212 4,171 34,638
------- ------- ------- -------
NET ASSETS:
Beginning of period..................................... 42,212 -- 34,638 --
------- ------- ------- -------
End of period........................................... $62,161 $42,212 $38,809 $34,638
======= ======= ======= =======
CAPITAL SHARE TRANSACTIONS:
Capital shares outstanding at beginning of period.......... 4,154 -- 3,451 --
Shares issued........................................... 2,341 4,855 647 3,816
Shares issued in lieu of cash distributions............. 8 -- -- --
Shares repurchased...................................... (360) (701) (262) (365)
------- ------- ------- -------
Increase derived from capital share transactions...... 1,989 4,154 385 3,451
------- ------- ------- -------
Capital shares outstanding at end of period................ 6,143 4,154 3,836 3,451
======= ======= ======= =======
<FN>
- ----------
1 COMMENCED OPERATIONS ON AUGUST 10, 1994.
</FN>
</TABLE>
- --------------------------------------------------------------------------------
APRIL 30, 1996 35
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
PRIME OBLIGATIONS
MONEY MARKET FUND
5/1/95 8/8/94(1)
TO 4/30/96 TO 4/30/95
(000) (000)
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income.................................... $ 15,301 $ 8,619
Net realized gain (loss) on investments.................. -- --
-------- --------
Net increase resulting from operations................. 15,301 8,619
-------- --------
DIVIDENDS DISTRIBUTED FROM:
Net investment income.................................... (15,301) (8,619)
Net realized gains....................................... -- --
-------- --------
Total dividends distributed............................ (15,301) (8,619)
-------- --------
CAPITAL SHARE TRANSACTIONS (ALL AT $1.00 PER SHARE):
Proceeds from shares issued.............................. 696,813 647,086
Reinvestment of cash distributions....................... 413 52
Cost of shares repurchased............................... (689,132) (357,179)
-------- --------
Increase in net assets derived
from capital share transactions..................... 8,094 289,959
-------- --------
Net increase in net assets............................... 8,094 289,959
-------- --------
NET ASSETS:
Beginning of period...................................... 290,058 99
-------- --------
End of period............................................ $298,152 $290,058
======== ========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
36 APRIL 30, 1996
<PAGE>
INVENTOR FUNDS
<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 4/30/96 TO 4/30/95 TO 4/30/96 TO 4/30/95
(000) (000) (000) (000)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income.................................... $ 7,034 $ 2,151 $ 2,271 $ 1,145
Net realized gain (loss) on investments.................. (3) 14 -- --
-------- -------- -------- --------
Net increase resulting from operations................. 7,031 2,165 2,271 1,145
-------- -------- -------- --------
DIVIDENDS DISTRIBUTED FROM:
Net investment income.................................... (7,034) (2,151) (2,271) (1,145)
Net realized gains....................................... -- -- -- --
-------- -------- -------- --------
Total dividends distributed............................ (7,034) (2,151) (2,271) (1,145)
-------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS (ALL AT $1.00 PER SHARE):
Proceeds from shares issued.............................. 752,257 330,496 148,939 119,764
Reinvestment of cash distributions....................... 216 71 51 11
Cost of shares repurchased............................... (679,258) (250,090) (135,236) (63,107)
-------- -------- -------- --------
Increase in net assets derived
from capital share transactions..................... 73,215 80,477 13,754 56,668
-------- -------- -------- --------
Net increase in net assets............................... 73,212 80,491 13,754 56,668
-------- -------- -------- --------
NET ASSETS:
Beginning of period...................................... 80,491 -- 56,668 --
-------- -------- -------- --------
End of period............................................ $153,703 $80,491 $70,422 $56,668
======== ======== ======== ========
<FN>
- ----------
1 COMMENCED OPERATIONS ON AUGUST 8, 1994.
</FN>
</TABLE>
- --------------------------------------------------------------------------------
APRIL 30, 1996 37
<PAGE>
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED APRIL 30, 1996
<TABLE>
<CAPTION>
NET REALIZED DISTRIBUTIONS
NET ASSET AND DISTRIBUTIONS FROM NET ASSET
VALUE NET UNREALIZED FROM NET REALIZED VALUE
FOR A SHARE OUTSTANDING BEGINNING INVESTMENT GAINS INVESTMENT CAPITAL END TOTAL
THROUGHOUT THE PERIOD OF PERIOD INCOME ON SECURITIES INCOME GAINS OF PERIOD RETURN
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
- -------------
EQUITY GROWTH
- -------------
Class A (3)
1996 ........................... $10.69 $0.15 $2.95 $(0.15) $(0.96) $12.68 29.95%
1995(1)......................... 10.00 0.12 0.71 (0.12) (0.02) 10.69 8.33(DAGGER)
- ----------------------------------
INTERMEDIATE GOVERNMENT SECURITIES
- ----------------------------------
Class A (3)
1996 ........................... $10.02 $0.64 $0.07 $(0.64) $(0.05) $10.04 7.09%
1995(1)......................... 10.00 0.44 0.02 (0.44) -- 10.02 4.75(DAGGER)
- ---------------
GNMA SECURITIES
- ---------------
Class A (3)
1996 ........................... $10.16 $0.66 $0.14 $(0.66) $(0.18) $10.12 7.97%
1995(1)......................... 10.00 0.48 0.16 (0.48) -- 10.16 6.61(DAGGER)
- ---------------------------
PENNSYLVANIA MUNICIPAL BOND
- ---------------------------
Class A (3)
1996 ........................... $10.04 $0.43 $0.08 $(0.43) $ -- $10.12 5.06%
1995(1)......................... 10.00 0.29 0.04 (0.29) -- 10.04 3.38(DAGGER)
- ------------------------------
PRIME OBLIGATIONS MONEY MARKET
- ------------------------------
Class A
1996 ........................... $ 1.00 $0.05 $ -- $(0.05) $ -- $1.00 5.41%
1995(2)......................... 1.00 0.04 -- (0.04) -- 1.00 3.76(DAGGER)
- --------------------------------
TREASURY SECURITIES MONEY MARKET
- --------------------------------
Class A
1996 ........................... $ 1.00 $0.05 $ -- $(0.05) $ -- $1.00 5.36%
1995(2)......................... 1.00 0.04 -- (0.04) -- 1.00 3.60(DAGGER)
- -----------------------
PENNSYLVANIA TAX-EXEMPT
MONEY MARKET
- -----------------------
Class A
1996 ........................... $ 1.00 $0.03 $ -- $(0.03) $ -- $1.00 3.36%
1995(2)......................... 1.00 0.02 -- (0.02) -- 1.00 2.32(DAGGER)
<FN>
- ----------
(DAGGER) 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.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
38 APRIL 30, 1996
<PAGE>
INVENTOR FUNDS
<TABLE>
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
RATIO OF NET EXPENSES INCOME TO
NET ASSETS RATIO OF INVESTMENT TO AVERAGE AVERAGE
END EXPENSES INCOME TO NET ASSETS NET ASSETS PORTFOLIO AVERAGE
FOR A SHARE OUTSTANDING OF PERIOD TO AVERAGE AVERAGE (EXCLUDING (EXCLUDING TURNOVER COMMISSION
THROUGHOUT THE PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE RATE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
- -------------
EQUITY GROWTH
- -------------
Class A (3)
1996 ........................... $ 61,161 0.95% 1.22% 1.43% 0.74% 168% $0.0508
1995(1)......................... 46,657 0.95 1.57 1.48 1.04% 110 --
- ----------------------------------
INTERMEDIATE GOVERNMENT SECURITIES
- ----------------------------------
Class A (3)
1996 ........................... $ 89,901 0.85% 6.20% 1.25% 5.80% 94% $ --
1995(1)......................... 53,316 0.85 6.17 1.33 5.69 172 --
- ---------------
GNMA SECURITIES
- ---------------
Class A (3)
1996 ........................... $ 62,161 0.85% 6.30% 1.29% 5.86% 149% $ --
1995(1)......................... 42,212 0.85 6.68 1.40 6.13 226 --
- ---------------------------
PENNSYLVANIA MUNICIPAL BOND
- ---------------------------
Class A (3)
1996 ........................... $ 38,809 0.85% 4.16% 1.24% 3.77% 22% $ --
1995(1)......................... 34,638 0.85 4.05 1.36 3.54 4 --
- ------------------------------
PRIME OBLIGATIONS MONEY MARKET
- ------------------------------
Class A
1996 ........................... $298,152 0.55% 5.28% 0.92% 4.91% --% $ --
1995(2)......................... 290,058 0.55 5.16 1.01 4.70 -- --
- --------------------------------
TREASURY SECURITIES MONEY MARKET
- --------------------------------
Class A
1996 ........................... $153,703 0.55% 5.20% 0.98% 4.77% --% $ --
1995(2)......................... 80,491 0.55 5.00 1.05 4.50 -- --
- -----------------------
PENNSYLVANIA TAX-EXEMPT
MONEY MARKET
- -----------------------
Class A
1996 ........................... $ 70,422 0.55% 3.29% 0.96% 2.88% --% $ --
1995(2)......................... 56,668 0.55 3.21 1.04 2.72 -- --
</TABLE>
- --------------------------------------------------------------------------------
APRIL 30, 1996 39
<PAGE>
NOTES TO FINANCIAL STATEMENTS INVENTOR FUNDS
APRIL 30, 1996
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, Pennsyslvania 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 Funds'
prospectus provides a description of each Fund's investment objectives, policies
and strategies. 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. The Funds also invest in
tri-party repurchase agreements. Securities held as collateral for tri-party
repurchase agreements are maintained by the broker's custodian bank in a
segregated account until maturity of the repurchase agreement. Provisions of the
agreements ensure that the market value of the collateral, including accrued
interest thereon, is sufficient in the event of default. If the counterparty
defaults and the value of the collateral declines or if the counterparty enters
into an insolvency proceeding, realization of the collateral by the Funds 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 Valuation"
- --------------------------------------------------------------------------------
40 APRIL 30, 1996
<PAGE>
NOTES TO FINANCIAL STATEMENTS CONTINUED INVENTOR FUNDS
APRIL 30, 1996
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 accquisition 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, Pennsyslvania 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.
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
- --------------------------------------------------------------------------------
APRIL 30, 1996 41
<PAGE>
NOTES TO FINANCIAL STATEMENTS CONTINUED INVENTOR FUNDS
APRIL 30, 1996
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 April 30, 1996, the Adviser and other parties waived
a portion of their contractual fees in order to assist the Funds in maintaining
competitive expense ratios. 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 ............. $124 $130 $107 $ 44 $ 359 $245 $110
Waiver of administrative fee . -- -- -- 10 -- -- --
Waiver of 12b-1 fees ......... 136 215 138 95 725 338 173
- -------------------------------------------------------------------------------------------------------------------------
Total Waivers ................ $260 $345 $245 $149 $1,084 $583 $283
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
4. INVESTMENT TRANSACTIONS
During the period ended April 30, 1996, 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 .................................... $ -- $109,205 $99,225 $ --
Other............................................... 82,934 -- -- 14,531
SALES
U.S. Government .................................... $ -- $ 71,514 $80,639 $ --
Other............................................... 83,126 -- -- 7,274
</TABLE>
At April 30, 1996, the total cost of securities 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 April 30, 1996 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 ............... $6,753 $ 363 $ 322 $ 541
Aggregate gross unrealized depreciation ............... (629) (1,223) (926) (158)
- ----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)............. $6,124 $ (860) $(604) $ 383
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
5. SUBSEQUENT EVENTS
At a shareholder meeting on May 2, 1996, shareholders approved National City
Bank ("NCC") as investment adviser to the Funds in conjunction with the merger
between Integra Financial Corporation, the parent to the Fund's investment
adviser, Integra Trust Company and National City Corporation. NCC is National
City Corporations banking group and has served as investment adviser to the
Armada Funds since 1986. Terms of the investment advisory agreement remained the
same as described in Footnote 3.
The company's Board of Directors approved the dissolution of the Prime
Obligations and Treasury Securities Funds at the May 13, 1996 board meeting.
These Funds were dissolved on May 31, 1996.
- --------------------------------------------------------------------------------
42 APRIL 30, 1996
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS INVENTOR FUNDS
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES
OF THE INVENTOR FUNDS, INC.
We have audited the accompanying statements of net assets of the Inventor
Funds, Inc. comprising, respectively, Equity Growth, Pennsylvania Municipal
Bond, Intermediate Government Securities, GNMA Securities, Prime Obligations
Money Market, Treasury Securities Money Market and Pennsylvania Tax-Exempt Money
Market Funds as of April 30, 1996, and the related statements of operations for
the year ended, and the statements of changes in net assets and the financial
highlights for each of the respective periods presented. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of April
30, 1996, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and the financial highlights
referred to above present fairly, in all material respects, the financial
position of each of the respective portfolios comprising the Inventor Funds,
Inc. as of April 30, 1996, the results of their operations for the year then
ended, the changes in their net assets and their financial highlights for each
of the respective periods presented, in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
June, 14, 1996
- --------------------------------------------------------------------------------
APRIL 30, 1996 43
<PAGE>
NOTICE TO SHAREHOLDERS (UNAUDITED) INVENTOR FUNDS
FOR TAX-PAYERS FILING ON A CALENDAR YEAR BASIS, THIS NOTICE IS FOR INFORMATION
PURPOSES ONLY.
Dear Inventor Fund Shareholders:
For the fiscal year ended April 30, 1996, each portfolio is designating
long term capital gains and exempt income with regard to distributions paid
during the year as follows:
<TABLE>
<CAPTION>
(A) (B)
LONG TERM ORDINARY (C) (E)
CAPITAL GAINS INCOME TOTAL (D) TAX
DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS QUALIFYING EXEMPT
FUND (TAX BASIS) (TAX BASIS) (TAX BASIS) DIVIDENDS(1) INTEREST
---- ------------- ------------- ------------- ------------ --------
<S> <C> <C> <C> <C> <C>
Prime Obligations 0% 100% 100% 0% 0%
Treasury Securities 0% 100% 100% 0% 0%
Pennsylvania Tax-Exempt 0% 100% 100% 0% 100%
Pennsylvania Municipal Bond 0% 100% 100% 0% 100%
Intermediate Government Securities 1% 99% 100% 0% 0%
GNMA Securities 1% 99% 100% 0% 0%
Equity Growth 6% 94% 100% 14% 0%
<FN>
* Items (A) and (B) are based on a percentage of the portfolio's total distributions
** Items (D) and (E) are based on a percentage of ordinary income distribution of the portfolio.
(1) Qualifying dividends represent dividends which qualify for the corporate dividends received deduction.
</FN>
</TABLE>
Please consult your tax adviser for proper treatment of this information.
- --------------------------------------------------------------------------------
44 APRIL 30, 1996
<PAGE>
[GRAPHIC OMITTED]
NOT FDIC INSURED
MUTUAL FUNDS & OTHER
INVESTMENT PRODUCTS ARE:
(BULLET) NOT INSURED BY THE FDIC.
(BULLET) NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY, INTEGRA BANK OR ANY
OF ITS AFFILIATES
(BULLET) 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 National
City Bank.
INVENTOR FUNDS
- ---------------------------------------------
INVESTMENT ADVISER
National City Bank
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.
19294 INT-F-296-02
- --------------------------------------------------------------------------------
INVENTOR FUNDS LOGO
[GRAPHIC OMITTED]
INVENTOR FUNDS
BETTER IDEAS FOR YOUR FUTURE
1996
ANNUAL
REPORT TO
SHAREHOLDERS
April 30, 1996
[GRAPHIC OMITTED]
