<PAGE> 1
Qualivest Capital Management, Inc. and U.S. Bank are subsidiaries of U.S.
Bancorp, the largest bank holding company headquartered in the Northwest. With
assets of more than $30 billion, U.S. Bancorp has provided individuals and local
institutions with quality investment management for more than 100 years.
INTRODUCING THE QUALIVEST DYNAMIC ALLOCATION SERIES:
INVESTMENT EXPERTISE WITH A LOCAL PERSPECTIVE. The Qualivest Dynamic
Allocation Series is designed to provide investors with the best of both
worlds: nationally recognized investment management expertise combined with
a local perspective. While Qualivest's portfolio managers have access to
Wall Street using today's technology, they also have unique insight into
the companies and businesses in which they invest.
Constant review of broad investment trends and detailed company research
allow Qualivest's portfolio managers to uncover value that others may
overlook or be too far away to notice.
Let the Qualivest Dynamic Allocation Series help take the guesswork out of
investing. This convenient investment option offers you top-quality
investment management that utilizes a strategic combination of stock and
bond funds from the Qualivest Mutual Funds. All you have to do is determine
your tolerance for risk and how long you have to invest, and Qualivest
Capital Management will do the rest.
To obtain a prospectus for the Qualivest Dynamic Allocation Series, call
1-800-743-8637. The prospectus contains more complete information,
including charges and expenses. Please read it carefully before you invest
or send money.
QUALIVEST CAPITAL MANAGEMENT, INC.:
THE PEOPLE BEHIND THE PERFORMANCE. The Qualivest Mutual Funds are managed
by Qualivest Capital Management, Inc., a subsidiary of U.S. Bancorp,
headquartered in the Pacific Northwest. During the last decade, Qualivest
Capital Management, Inc. has quietly grown into a regional powerhouse with
$8 billion under management, by developing solid investment strategies for
individual and institutional investors like you.
Enhancing the value of assets is Qualivest's only business. Whether you are
investing in a 401(k) plan, a 403(b) plan, an IRA account or a regular
mutual fund account, Qualivest Capital Management, Inc. and the Qualivest
Mutual Funds are a smart choice. Let Qualivest's savvy investment advice
and strong investment discipline help you reach your goals.
<PAGE> 2
Contents
<TABLE>
<S> <C>
QUALIVEST FUND FACTS 1
A GUIDE TO YOUR
SHAREHOLDER REPORT 3
CHAIRMAN'S LETTER 5
MARKET REVIEW AND
ECONOMIC OUTLOOK 6
PORTFOLIO REVIEWS 7
INDEPENDENT AUDITORS' REPORT 23
STATEMENTS OF ASSETS
AND LIABILITIES 24
STATEMENTS OF OPERATIONS 28
STATEMENTS OF CHANGES
IN NET ASSETS 32
SCHEDULES OF PORTFOLIO INVESTMENTS 37
NOTES TO FINANCIAL STATEMENTS 87
FINANCIAL HIGHLIGHTS 101
</TABLE>
.....................................
<PAGE> 3
QUALIVEST FUND FACTS
Whatever your investment goal or investing style, you'll find a Qualivest Fund
or Funds to suit you. The Qualivest Mutual Funds offer funds designed for
growth, income and capital preservation. To put together a portfolio tailored to
your needs, consult with a U.S. Bancorp Securities registered representative* or
call 1-800-743-8637 for prospectuses, which you should read carefully before
investing.
<TABLE>
<CAPTION>
PORTFOLIO CONSISTS DESIGNED FOR INVESTORS
QUALIVEST FUND OBJECTIVE PRIMARILY OF . . . WHO . . .
- -------------------------------------------------------------------------------------------------
STOCK FUNDS
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Qualivest Small Capital appreciation Small U.S. companies Have a long time
Companies Value that the portfolio horizon, seek
Fund(1) manager believes to be significant investment
undervalued and to have growth and can accept
superior growth higher-than- average
potential volatility
Qualivest Capital appreciation Stocks of companies Have a long time
International outside the U.S. that horizon, seek
Opportunities Fund(2) are included in the MSCI significant investment
EAFE Index(3) growth and can accept
a higher-than-average
volatility
Qualivest Large Long-term capital Large U.S. companies Have a medium to long
Companies Value Fund appreciation whose stocks are time horizon and seek
considered by the investment growth
portfolio manager to be
undervalued
Qualivest Optimized Capital appreciation Stocks in the S&P 500 Have a medium to long
Stock Fund and current income Stock Index,(4) time horizon and seek
emphasizing investment growth and
top-performing stocks income
<CAPTION>
- -------------------------------------------------------------------------------------------------
BOND FUNDS
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Qualivest Diversified Current income and Securities issued by the Seek current income
Bond Fund preservation of U.S. Government and its
capital agencies,
mortgage-related
securities and corporate
bonds with 7-11 yr.
average maturity
Qualivest Current income and Securities issued by the Seek current income
Intermediate Bond preservation of U.S. Government, its
Fund capital agencies and by
corporations with 3-7
yr. average maturity
</TABLE>
-1-
<PAGE> 4
<TABLE>
<CAPTION>
PORTFOLIO CONSISTS DESIGNED FOR INVESTORS
QUALIVEST FUND OBJECTIVE PRIMARILY OF . . . WHO . . .
- -------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS(5)
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Qualivest Money Current income, High-quality, short-term Seek a convenient way
Market Fund liquidity & stability money-market instruments to accumulate cash
of principal while waiting for
other investment
opportunities
Qualivest Tax-Free Income free from High-quality, municipal Seek a tax-free way to
Money Market Fund(6) federal income tax & money-market securities accumulate cash while
stability of waiting for other
principal investment
opportunities
Qualivest U.S. Current income, Money-market securities Seek a convenient way
Treasury Money Market liquidity & stability issued or guaranteed by to accumulate cash
Fund of principal the U.S. Government or while waiting for
its agencies other investment
opportunities
<CAPTION>
- -------------------------------------------------------------------------------------------------
ASSET ALLOCATION FUNDS
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Qualivest Allocated Current income, with Qualivest stock and bond Seek current income
Conservative Fund appreciation a funds
secondary objective
of long-term capital
Qualivest Allocated Long-term capital Qualivest stock and bond Seek a combination of
Balanced Fund appreciation and funds capital appreciation
current income and income
Qualivest Allocated Capital appreciation Qualivest stock and bond Have a medium to long
Growth Fund and income growth funds time horizon and seek
investment growth
Qualivest Allocated Maximum capital Qualivest stock funds Have a long time
Aggressive Fund appreciation horizon and seek
significant investment
growth
</TABLE>
* The Qualivest Funds are available through U.S. Bancorp Securities, a brokerage
subsidiary of U.S. Bancorp and a member of NASD and SIPC.
(1) Small-cap funds typically carry additional risks since smaller companies
generally have a higher risk of failure. Historically, smaller-company
stocks have experienced a greater degree of market volatility than larger
capitalization stocks on average.
(2) International investing is subject to certain risk factors, including
currency exchange-rate volatility, possible political instability and/or
differences in financial standards and taxation.
(3) The Morgan Stanley Capital International EAFE (Europe, Australia, Asia and
Far East) Index is an unmanaged index generally representative of
established international stock markets.
(4) The Standard & Poor's 500 Stock Index is an unmanaged index generally
representative of the U.S. stock market.
(5) An investment in the Funds is neither insured nor guaranteed by the U.S.
Government. There can be no assurances that these Funds will be able to
maintain a stable NAV of $1.00 per share.
(6) Depending on your tax bracket, some or all of the income may be subject to
the federal alternative minimum tax and to certain state and local taxes.
-2-
<PAGE> 5
A GUIDE TO YOUR SHAREHOLDER REPORT
As a mutual fund shareholder, you receive two financial reports a year that
contain important information designed to help you understand your investment
and its performance--an annual and a semi-annual report. Below is a guide to key
sections of your report.
The MARKET REVIEW AND OUTLOOK gives you an overview of the economy and the
financial markets for the reporting period and the Investment Adviser's outlook
for the months ahead.
The INTERVIEWS WITH THE FUND MANAGERS provide you with information about each
Fund's performance, investment strategy and changes in portfolio holdings.
To help illustrate Fund performance you will find a chart comparing a
hypothetical $10,000 investment in the Fund against a widely used industry
benchmark. This index depicts the performance of a broad universe of investments
similar to those held in the Fund. When comparing Fund performance to an index,
it is important to keep in mind that the Fund's holdings may be restricted--by
the guidelines of its prospectus--to a much smaller range of investments than
those represented by an index. In addition, an index does not reflect any
expenses that may accompany an investment in the funds, such as management fees,
portfolio transaction costs and sales charges.
The STATEMENT OF ASSETS AND LIABILITIES lists each Fund's assets and
liabilities. This is, in effect, the Fund's balance sheet as of the date of the
report.
ASSETS: summarizes the Fund's assets stated at market
value, including investments owned, dividends, interest
and other amounts owed to each Fund by outside parties
and any other assets owned by the Fund
LIABILITIES: summarizes all amounts owed by the Fund,
including distributions declared but not yet paid to
shareholders and other amounts owed to outside parties
[REDUCED SAMPLE] NET ASSETS: (assets minus liabilities): summarizes the
amounts that compose the Fund's net assets, including
capital, undistributed net investment income,
unrealized gains (or losses) from investments owned and
realized gains (or losses) from investments sold
The number of shares owned by shareholders in the Fund
NET ASSET VALUE: the market value of the Fund's total
net assets divided by the number of outstanding shares,
or the net asset value (NAV) per share
The NAV plus sales charges
The STATEMENT OF OPERATIONS lists the results of operating activities during the
period.
INVESTMENT INCOME includes dividend and interest income
earned by the investments in the Fund
[REDUCED SAMPLE] EXPENSES lists expenses incurred by the Fund
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
summarizes gains or losses realized from selling the
Fund's investments
Change in net assets due to Fund operations
-3-
<PAGE> 6
The STATEMENT OF CHANGES IN NET ASSETS lists the activities that affected the
value of the Fund's total net assets during the two most recent reporting
periods.
See Statement of Operations
Distributions declared to shareholders from net
investment income or net realized gains during the
period
[REDUCED SAMPLE] Dollar amount of mutual fund shares issued, reinvested
or redeemed
Compares total net assets as of the end of the current
and prior periods
Share Transactions lists the number of Fund shares
issued, reinvested and redeemed
The SCHEDULE OF PORTFOLIO INVESTMENTS lists each investment holding in the Fund
as of the date of the report. Investments are usually grouped by category (by
industry or security type, for example). The percentage of the Fund's net assets
represented by these groupings is also indicated.
Type of security
Industry sector and percentage of the Fund's net assets
[REDUCED SAMPLE] represented by investments in that sector (if
applicable)
Individual portfolio holdings with number of shares and
market value as of the date of the report
The NOTES TO FINANCIAL STATEMENTS describe in more detail certain Fund
procedures and activities, such as accounting procedures, contractual
arrangements between the Fund and its service providers, specialized Fund
transactions and other general information about the Fund.
The FINANCIAL HIGHLIGHTS summarizes Fund activity as it affects a single Fund
share--including net investment income, realized and unrealized gains and losses
and dividends and distributions of the Fund. This section also gives key data
such as the total investment return for each period, the portfolio turnover rate
(an indication of portfolio activity) and the ratios of expenses and net
investment income to average net assets.
The financial statements and financial highlights included in annual reports are
audited by an independent public accounting firm and cover the activity for the
past fiscal year. A semi-annual report is a six-month interim report that
includes financial statements that will not be audited by an independent
accounting firm.
-4-
<PAGE> 7
QUALIVEST FUNDS
Annual Report
July 31, 1996
CHAIRMAN'S LETTER
Dear Shareholders:
It is my pleasure to present the annual report of the Qualivest Funds for the
year ended July 31, 1996. Although the markets experienced periods of volatility
during this time, the results for the year were above average for stocks, while
bonds turned in modest gains.
We are particularly pleased with the Qualivest Small Companies Value Fund, whose
12-month return of 14.93%(A shares at NAV) was twice that of its benchmark, the
Russell 2000 Index.
From August 1, 1995, to July 31, 1996, the Standard & Poor's 500 Stock Index, a
broad measure of the stock market, rose about 16.55%. Most of that gain took
place between August and February, when interest rates were falling and
corporate profits were still very strong. Between February and July, the stock
market became choppy, as interest rates rose and investors became concerned
about inflation. Nevertheless, a 16.55% gain in the stock market is considered a
strong year. Bond prices, on the other hand, are determined directly by
movements in interest rates. Because interest rates ended the fiscal year
roughly where they began, bonds produced just modest returns.
We are very optimistic about the stock and bond markets for the year ahead. But
we also recognize that asset class performance varies from year to year. That is
why we have introduced the Dynamic Allocation Series--four new investment
portfolios that are comprised of a variety of Qualivest Funds. The Dynamic
Allocation Series allows you to select a portfolio of mutual funds designed to
match your investment goals and attitude about risk.
Following this letter, we'll discuss these new funds with Tim Leach, the Chief
Investment Officer of Qualivest Capital Management, the Fund's adviser. But
first, he'll offer a broad overview of the financial markets. After that, you
will find detailed discussions of individual Fund performance as the Fund
managers respond to questions about their Funds. This report also includes
detailed financial information on all of the Qualivest Funds. We urge you to
read the entire report to help you monitor the progress of your investments in
the Funds.
In the two years since the Funds were launched on August 1, 1994, the Qualivest
family has grown from $530 million to $1.8 billion in net assets under
management. We appreciate your confidence in us and look forward to continuing
to help you meet your investment goals.
Sincerely,
/s/ George R. Landreth
George R. Landreth
Chairman, Qualivest Funds
THE QUALIVEST FUNDS, LIKE ALL MUTUAL FUNDS, ARE NOT INSURED BY THE FDIC OR ANY
OTHER U.S. GOVERNMENT AGENCY AND ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF, OR
GUARANTEED BY, U.S. BANCORP OR ITS AFFILIATES OR SUBSIDIARIES. THE FUNDS ARE
SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT
INVESTED. THE FUNDS MAY INVOLVE SALES CHARGES AND OTHER FEES.
-5-
<PAGE> 8
MARKET REVIEW AND ECONOMIC OUTLOOK
FROM QUALIVEST CAPITAL MANAGEMENT
"It's really been a very good year."--Tim Leach
HOW WOULD YOU CHARACTERIZE THE CURRENT STOCK MARKET ENVIRONMENT?
TIM LEACH: Our view is that we are at the end of the business cycle, with
economic growth slowing. However, while the economy continues to slow over the
next few quarters, we expect to see corporate earnings continue to increase at a
reasonable pace. Because inflation is still very restrained, we're not overly
concerned about the fact that the stock market has risen so much. Stock
valuations are still within reason, based upon a relatively slow economic
environment and low inflation. If inflation were to present more of a problem
and interest rates were to move back up again, then we could see some real
concern for the equity markets, but that's not what we expect at this point.
WOULD FASTER ECONOMIC GROWTH AUTOMATICALLY LEAD TO INFLATION?
TIM LEACH: The Federal Reserve Board believes that 2.5% to 3.0% growth is about
the limit of what our economy can withstand without overtaxing resources, and
there seems to be quite a bit of evidence to support that opinion. I don't think
the economy could grow at a 4.0% rate, for example, without inflation.
Manufacturing capacity is already up at fairly high levels, but we're actually
more concerned about capacity with respect to labor. We've got such low
unemployment, especially with respect to more highly skilled jobs, that there
seems to be broad-based shortages of trained technical labor in many different
industries and geographic areas across the country today. If we had more growth
that taxed the labor supply even more, then we could really see wage inflation
begin to kick in, especially since the economy is predominantly service based.
This is made worse by the demographic cycle, where baby boomers are heading
toward retirement after having had smaller families. There's a shortage of
younger people coming into the work force, which exacerbates the shortage of
labor.
WHY DID THE MARKETS TURN AROUND FAIRLY DRAMATICALLY IN THE FIRST FEW WEEKS OF
AUGUST?
TIM LEACH: After several months in which economic data showed surprising
strength, recent data showed more restrained growth in the economy. Meanwhile,
the stock and bond markets have discounted any Federal Reserve Board action to
raise interest rates. It became apparent that the Fed would not act, at least
not in August, and that was viewed favorably by the markets. At the same time,
corporate earnings reports for the second quarter were really pretty good. More
than 50% of the companies reporting were above Wall Street expectations, and
another 20% were right at expectations. It's really been a very good year.
WHAT IS YOUR OUTLOOK FOR THE MARKETS FOR THE NEXT YEAR?
TIM LEACH: Our outlook is for continued moderate appreciation in the stock
market. After a modest correction in July, I'm not anticipating a huge problem
in the equity markets. Interest rates are likely to behave well for the balance
of the year, and, therefore, the bond funds should do nicely--through price
appreciation as well as generating good income for shareholders.
-6-
<PAGE> 9
QUALIVEST SMALL COMPANIES VALUE FUND
"Ultimately the stock market is attracted to value. The rub is that sometimes it
takes awhile."
--Dale Benson
For the 12 months ended July 31, 1996, the Fund produced a total return of
14.93% (A shares at NAV). In comparison, the Russell 2000 Index returned 6.95%
for the period.
QUALIVEST SMALL COMPANIES VALUE FUND
VALUE OF A $10,000 INVESTMENT
<TABLE>
<CAPTION>
MEASUREMENT PERIOD RUSSELL 2000
(FISCAL YEAR COVERED) CLASS A* CLASS C CLASS Y INDEX
<S> <C> <C> <C> <C>
1/01/88 9552 10000 10000 10000
7/31/88 11987 12509 12580 12571
7/31/89 14442 14960 15194 14865
7/31/90 13696 14082 14446 14098
7/31/91 17193 17547 18179 15448
7/31/92 21305 21584 22582 17690
7/31/93 27107 27261 28803 21830
7/31/94 29851 29797 31797 22851
7/31/95 40088 39637 42850 28548
7/31/96 46075 45104 48251 30532
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
---------------------------
AS OF SINCE
7/31/96 1 YEAR 5 YEAR INCEPTION
------- ------ ------ ---------
<S> <C> <C> <C>
Class A* 9.79% 20.68% 19.47%
Class C** 13.79% 20.78% 19.18%
Class Y 14.94% 22.06% 20.40%
</TABLE>
* Reflects 4.50% Sales Charge
** Reflects Applicable Contingent Deferred Sales Charge
The performance of the Qualivest Small Companies Value Fund is measured
against the Russell 2000 Index, an unmanaged index generally representative of
the performance of small company stocks. The index does not reflect the
deduction of expenses associated with a mutual fund, such as investment
management and fund accounting fees. The Fund's performance reflects the
deduction of fees for these value-added services. Past performance is not
indicative of future results. The investment return and NAV will fluctuate, so
that an investor's shares, when redeemed, may be worth more or less than the
original cost.
The quoted performance of the Fund includes performance of certain collective
trust fund ("Commingled") accounts advised by Qualivest Capital Management for
periods dating back to January 1, 1988 and prior to the Mutual Fund's
commencement of operations on August 1, 1994, as adjusted to reflect the
expenses associated with the Fund. The Commingled accounts were not registered
with the Securities and Exchange Commission and, therefore, were not subject
to the investment restrictions imposed by law on registered mutual funds. If
the Commingled accounts had been registered, the Commingled accounts'
performance may have been adversely affected.
The Qualivest Small Companies Value Fund is managed by Dale Benson, who has more
than 20 years' experience in the securities industry. In addition to being a
Chartered Financial Analyst, Mr. Benson holds a Ph.D. in history.
WHAT FACTORS AFFECTED YOUR PERFORMANCE OVER THE PAST YEAR?
DALE BENSON: One reason for our attractive performance during this fiscal year
was that we sold off technology stocks in the spring quarter before their sharp
decline. In addition, we increased our investment in financial services as well
as real estate investment trusts at the right time. But we also have a long
track record of good stock selection. Over a three-year period, the Small
Companies Value Fund produced an average annual return of 19.34% (A shares at
NAV). In comparison, the Russell 2000 Index was up an average of 11.83% during
that time. Over five years, our total average annual return was 21.79% (A shares
at NAV). In comparison, the Russell 2000 Index has risen an average of 14.60%.
-7-
<PAGE> 10
HOW WOULD YOU DESCRIBE YOUR INVESTMENT STYLE?
DALE BENSON: I look for companies with market capitalizations under $500 million
that are inexpensively priced, either because the stock isn't well followed by
Wall Street analysts or because the company is temporarily out of favor. We look
at ratios such as price-to-book value, price to revenues and price to cash flow.
If it's a technology stock, we want to see good cash flow and lots of R&D
spending. We want to see a company spend money on its future, even if it hurts
earnings in the short run. Sometimes it takes three or four years to reap the
rewards of these stocks. Our goal is to find companies that are not vulnerable
to major downward movements.
WHAT ARE SOME EXAMPLES OF STOCKS THAT HAVE WORKED OUT WELL FOR YOU THIS YEAR?
DALE BENSON: We've been buying Applied Magnetics, a technology stock that was
knocked down in May and June, but it has since come back by about 40%. The
company's technology vastly increases the memory capacity of a computer disk
drive, which is critical as software becomes more and more complex. I've just
sold City National, a California bank serving the entertainment industry. The
company reported a very strong second quarter, and the stock had risen by 50%.
Real estate investment trusts held their own during the market sell-off in July.
They're very defensive, and that's one reason why we tend to outperform in down
markets. For example, Starwood Lodging is the nation's largest REIT, which has
done well because the lodging sector is very robust. Another example, Enhanced
Financial insures municipal bonds; it's a specialty insurance company not
affected by interest-rate movements. In recent years, particularly in the wake
of the Orange County, California, bankruptcy in 1994, investors have been
increasingly demanding that municipal bonds be insured. Lastly, Air & Water
Technology is in the water reclamation privatization field. In July, Congress
passed a bill that enhances provisions of the Clean Water Act of 1990 that allow
for increased privatization.*
WHAT IS YOUR OUTLOOK BETWEEN NOW AND THE END OF 1996?
DALE BENSON: In my style of investing, I don't try to forecast the economy or
perform any other type of "top-down" analysis. Our focus continues to be on
individual companies. Right now they tend to be in finance, technology and
capital goods. For instance, a company such as Bridgeport Machines is very
attractive, currently selling at just eight times next year's earnings.
Magnetek, a maker of electrical components, is an interesting restructuring
story. Park-Ohio Industries recently sold a division for $50 million and now is
awash in cash. We've recently added Space Labs Medical in Seattle, which makes
patient monitors. The stock is very cheap, selling at $20 a share, and they've
got $5 per share in annual cash flow. Right now, it doesn't have any
"sponsorship," or research coverage, on Wall Street. But I agree with Warren
Buffett that ultimately the stock market is attracted to value. The rub is that
sometimes it takes awhile.
* Small capitalization funds typically carry additional risks since smaller
companies generally have a higher risk of failure. Historically, smaller
companies' stocks have experienced a greater degree of market volatility than
larger capitalization stocks on average. Portfolio composition is subject to
change.
-8-
<PAGE> 11
QUALIVEST INTERNATIONAL OPPORTUNITIES FUND*
"We wouldn't be surprised if international markets outperformed the U.S. over
the next 18 months." --Tim Leach
For the year ended July 31, 1996, the Fund produced a total return of 2.29% (A
shares at NAV). In comparison, the Morgan Stanley Capital International EAFE
(Europe, Australia and Far East) Index produced a return of 3.84% for the year.
QUALIVEST INTERNATIONAL OPPORTUNITIES FUND
VALUE OF A $10,000 INVESTMENT
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) CLASS A* CLASS Y CLASS C** MORGAN
<S> <C> <C> <C> <C>
7/03/95 9551 10000 10000 10000
7/31/95 9981 10480 10360 10625
7/31/96 10209 10749 10661 11033
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return
---------------------------------------------
Since
As of Inception
7/31/96 1 Year (7/3/95)
------- ------ ---------
<S> <C> <C>
Class A* -2.29% 1.94%
Class C** 1.92% 6.11%
Class Y 2.56% 6.92%
</TABLE>
* Reflects 4.50% Sales Charge
** Reflects Applicable Contingent Deferred Sales Charge
The performance of the Qualivest International Opportunities Fund is measured
against the Morgan Stanley International EAFE Index, an unmanaged index
generally representative of the performance of the stock markets in Europe,
Australia and the Far East. The index does not reflect the deduction of
expenses associated with a mutual fund, such as investment management and fund
accounting fees. The Fund's performance reflects the deduction of fees for
these value-added services. Past performance is not indicative of future
results. The investment return and NAV will fluctuate, so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
The Qualivest International Opportunities Fund is managed by Tim Leach, Chief
Investment Officer for Qualivest Capital Management, investment adviser to the
Qualivest Funds. Mr. Leach has more than 15 years' experience in the investment
field.
HOW WOULD YOU DESCRIBE THE INTERNATIONAL OPPORTUNITIES FUND?
TIM LEACH: The portfolio behaves very similarly to the Morgan Stanley EAFE
Index. The Fund includes about 700 foreign-based stocks, which is about 60% of
the entire EAFE Index of 1,100 companies. We're not replicating it as much as
having a portfolio that we're managing to behave very similarly to the EAFE
Index.
Overall, the portfolio has been tracking the EAFE Index very well. In the last
three months, we've actually outperformed EAFE, even with our expenses included.
But we're not taking any bets in this portfolio. We're just trying to emulate
EAFE-like performance without buying all 1,100 securities included in the EAFE.
WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
TIM LEACH: The two biggest areas of exposure in the EAFE Index are Japan and
Continental Europe. Japan, over the past six to eight months, has finally been
showing some signs of life. Its domestic economy has been improving. We believe
that we've seen the worst for Japan, and it's on the mend from here.
-9-
<PAGE> 12
However, the benefit to U.S.-based investors has been muted by the fact that the
dollar has appreciated dramatically vs. the yen.
In Continental Europe, the economies of Germany, France, Italy and, to a lesser
extent, the U.K., have been sluggish and have not shown signs of recovery to any
real extent. Unemployment is relatively high. Retail sales have declined
dramatically in the past 18 months and haven't picked up at all. The central
banks have been reducing interest rates to try to get their economies turned
around. In contrast, retail sales in Japan have recovered reasonably well.
WHAT IS YOUR OUTLOOK FOR THE INTERNATIONAL MARKETS?
TIM LEACH: Diversification means that you're trying to invest in different
markets that will behave out of cycle with each other. To a large extent, that's
been happening. The U.S. markets have been strong, and international markets are
lagging. Since the U.S. markets have come a long way, they could very likely
take a breather. Over the next 18 months, we wouldn't be surprised if
international markets outperformed the U.S. In my view, the U.S. economy is on
the aged end of our recovery cycle. Meanwhile, I would expect to see some
recovery in Europe, and the Japanese market continues to appreciate while the
dollar stabilizes.
* International investing is subject to certain risk factors such as currency
exchange-rate volatility, possible political, social or economic instability,
foreign taxation and differences in auditing and other financial standards."
-10-
<PAGE> 13
QUALIVEST LARGE COMPANIES VALUE FUND
"We think the Fund is really cheap at recent levels compared to the market and
offers good value." --John Swank
For the year ended July 31, 1996, the Fund produced a total return of 8.17% (A
shares at NAV). In comparison, the Standard & Poor's 500 Stock Index produced a
return of 16.55%.
QUALIVEST LARGE COMPANIES VALUE FUND
VALUE OF A $10,000 INVESTMENT
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) CLASS A* CLASS C** CLASS Y S&P 500
<S> <C> <C> <C> <C>
8/01/94 10000 10000 10000 10000
7/31/95 11901 12270 12504 12606
7/31/96 12874 13185 13576 14692
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return
---------------------------------------------
Since
As of Inception
7/31/96 1 Year (8/1/94)
------- ------ ---------
<S> <C> <C>
Class A* 3.34% 13.46%
Class C** 7.46% 14.83%
Class Y 8.57% 16.51%
</TABLE>
* Reflects 4.50% Sales Charge
** Relfects Applicable Contingent Deferred Sales Charge
The performance of the Qualivest Large Companies Value Fund is measured
against the S&P 500 Stock Index, an unmanaged index generally representative
of the performance of U.S. stocks. The index does not reflect the deduction of
expenses associated with a mutual fund, such as investment management and fund
accounting fees. The Fund's performance reflects the deduction of fees for
these value-added services. Past performance is not indicative of future
results. The investment return and NAV will fluctuate, so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
The Qualivest Large Companies Value Fund is co-managed by John Dozier and John
Swank, each of whom has 20 years' or more experience in the investment field.
John Swank holds an MBA and is also a Chartered Financial Analyst. John Dozier
has a bachelor's degree in economics.
WHAT FACTORS AFFECTED YOUR PERFORMANCE?
JOHN DOZIER: While numerous studies indicate that over the long haul value
investing has been the most profitable approach to picking stocks, it can entail
periods of underperformance. For the most part, the growth style of investing
outperformed value during the past 12 months. For example, the biggest winners
in the market were consumer staples like Coca-Cola, which recently traded at 35
times earnings, but which we don't own. Our style is to buy stocks with much
lower price-earnings ratios. Also, we were hurt by holding paper companies last
fall, when those prices fell sharply. However, we continue to find real value in
out-of-favor stocks.
JOHN SWANK: As a group, financial stocks were our biggest winner, up 31% for the
past year, and they're still selling at only 10 times next year's earnings. For
example, Nationsbank, based in North Carolina, is up 50% over the past 12
months. The stock has doubled in 18 months. Even though it's had a big move, we
believe that it's still reasonably priced. Financial stocks were hit when
interest rates went up, but they rebounded well when interest rates fell
recently. Plus, earnings have come through.
-11-
<PAGE> 14
WHAT WOULD BE SOME EXAMPLES OF LOW P/E STOCKS IN THE PORTFOLIO?
JOHN DOZIER: Our largest holding is Ford (3.31%). The stock recently sold for
nine times earnings and yielded 4.5%. Ford is the world's second-largest
producer of cars and trucks. In 1995, the company sold more trucks than cars for
the first time in its 92-year history due to strong Ranger and Explorer sales.
Ford reported excellent second-quarter 1996 profits, exceeding Wall Street
estimates. Both Ford and General Motors, which we also own, have "hidden" assets
in related businesses. For example, Ford owns 80% of publicly traded Associates
First Capital Corp., a finance company. Almost half of GM's market value is in
its GMH stock, which includes Hughes Aircraft and direct satellite broadcasting.
An example of good value that we've recently added to the Fund is Kennemetal,
the largest U.S. producer of metal-cutting tools. In addition to selling at just
10 times this year's earnings estimates, more than a quarter of the company's
profits comes from a fast-growing industrial distribution subsidiary. Similar
pure-play distributors may sell for more than 30 times earnings in the public
market, so we're getting the cutting-tool business practically for free--even
though it's a good business.
JOHN SWANK: We own Foundation Health and Health Systems, both of which are
trading at less than 10 times next year's earnings estimates. We think they're
extremely cheap right now. In the retail industry, Waban is selling at less than
10 times earnings estimates. It owns Home Base on the West Coast and BJ's
Wholesale on the East Coast, which is similar to Price/Costco. When the company
announced that earnings for the second quarter would increase just 5%, the stock
went down sharply, from $27 to $19. It looked like a bargain, selling at just 10
times trailing earnings and only eight times 1997 earnings. We recently bought
AT&T when it got down to $50 per share from $70. The company is going to spin
off Lucent and NCR, and, once it does that, the basic phone business is selling
for just 10 times earnings for a brand name franchise. IBM is still one of our
big holdings (2.47%). It's no longer a market leader as far as technology or the
stock market is concerned, but its earnings have gone up nicely in the last year
or two. Energy stocks aren't that cheap, but oil service companies have
developed good technology that makes it much more efficient for oil companies to
drill for oil. Worldwide, the demand for oil should rise as more emerging-market
countries start using more energy.*
WHAT IS YOUR OUTLOOK RIGHT NOW?
JOHN DOZIER: We think that our value stocks will weather the inevitable market
downdrafts better than most and will again bring truth to the notion that value
beats growth over the long run--with less downside risk in the meantime.
JOHN SWANK: The economy is slowing down; inflation doesn't appear to be a
threat; and interest rates have come down. I don't think there's a need for the
Federal Reserve Board to raise interest rates at all because the economy is
going to be slowing on its own. We believe that stocks still offer the best
place to be, compared to cash or bonds. We think many of our stocks have sold
off a lot more than they should have, based on their fundamentals. We think the
Fund is really cheap at these levels compared to the market and offers good
value.
* The portfolio's composition is subject to change.
-12-
<PAGE> 15
QUALIVEST OPTIMIZED STOCK FUND
"We own all 500 stocks in the S&P 500, and every industry is represented."--Tim
Leach
For the year ended July 31, 1996, the Fund produced a total return of 14.36% (A
shares at NAV). In comparison, the S&P 500 was up 16.55% for the 12-month
period.
QUALIVEST OPTIMIZED STOCK FUND
VALUE OF A $10,000 INVESTMENT
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED) CLASS A* CLASS C** CLASS Y S&P 500
<S> <C> <C> <C> <C>
5/2/95 10000 10000 10000 10000
7/31/95 10472 10974 10841 10994
7/31/96 11975 12430 12430 12814
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
---------------------------
SINCE
AS OF INCEPTION
7/31/96 1 YEAR (5/2/95)
------- ------ ---------
<S> <C> <C>
CLASS A* 9.17% 15.52%
CLASS C** 13.62% 19.02%
CLASS Y 14.56% 21.11%
</TABLE>
*Reflects 4.50% Sales Charge
**Reflects Applicable Contingent Deferred Sales Charge
The performance of the Qualivest Optimized Stock Fund is measured against the
S&P 500 Stock Index, an unmanaged index generally representative of the
performance of U.S. stocks. The index does not reflect the deduction of
expenses associated with a mutual fund, such as investment management and fund
accounting fees. The Fund's performance reflects the deduction of fees for
these value-added services. Past performance is not indicative of future
results. The investment return and NAV will fluctuate, so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
The Qualivest Optimized Stock Fund is managed by Tim Leach, Chief Investment
Officer for Qualivest Capital Management, investment adviser to the Qualivest
Funds. Mr. Leach has more than 15 years' experience in the investment field.
WHAT IS YOUR LONG-TERM GOAL FOR THE OPTIMIZED STOCK FUND?
TIM LEACH: We're trying to create a portfolio that behaves similarly to the S&P
500 Index. Our long-term goal is to moderately outperform that index, and we're
doing that by taking very modest overweighted positions in certain stocks and
underweighted positions in others. We own all 500 stocks, and every industry is
represented. We have the main economic sectors weighted similarly to the broad
market itself. Within sectors, we're using a quantitative model to emphasize
certain stocks within sectors and de-emphasize other stocks within each sector
to help generate a little bit of excess return for the portfolio. Like most
quantitative strategies, this tends to result in a value-style bias as opposed
to a growth-style bias, which is consistent with Qualivest's value style of
equity management. ("Weighting" is a relative term. When we're overweighted, we
own a greater percentage of the stock than is represented in the S&P 500, and
vice versa.)
WHAT FACTORS AFFECTED YOUR PERFORMANCE?
TIM LEACH: Over the last four to six months, the market has been oriented more
toward growth stocks, so the value approach has underperformed slightly. When
the market perceives slower economic growth and a possible recession on the
horizon, as it did this spring, then investors tend to migrate toward stocks
that have a proven earnings stream, such as those of growth companies. The
Fund's strategy
-13-
<PAGE> 16
allows our modeling to take a certain stock and overweight it up to three times
its market weighting in the index. Examples of recently overweighted stocks
include Pitney Bowes, Johnson Controls, Foster-Wheeler Corp. and Snap On Tools.
Our data on earnings and dividend expectations comes from Institutional Brokers
Estimate System, a company that collects Wall Street earnings estimates
projected ahead three to five years.*
WHAT IS YOUR OUTLOOK FOR THE FUND?
TIM LEACH: As you can see, we came very close to matching the S&P 500 Index for
the year, and we would hope to modestly outperform the index in the future. Our
outlook is for modest appreciation in the stock market for the rest of the year.
* The portfolio's composition is subject to change.
-14-
<PAGE> 17
QUALIVEST INTERMEDIATE BOND FUND
"We've maintained very high credit quality throughout the entire year."--Curry
Garvin
For the year ended July 31, 1996, the Fund produced a total return of 3.94% (A
shares at NAV). In comparison, the Fund's benchmark, the Lehman Brothers
Intermediate Government/Corporate Bond Index, returned 5.30%.
QUALIVEST INTERMEDIATE BOND FUND
VALUE OF A $10,000 INVESTMENT
<TABLE>
<CAPTION>
MEASUREMENT PERIOD LEHMAN
(FISCAL YEAR COVERED) CLASS A* CLASS Y CLASS C** INTERMEDIATE
<S> <C> <C> <C> <C>
1/01/88 10000 10000 10000 10000
7/31/88 9750 10116 10057 10419
7/31/89 10673 11108 10934 11745
7/31/90 11534 12026 11721 12581
7/31/91 12676 13256 12793 13868
7/31/92 14382 15076 14404 15830
7/31/93 15540 16322 15441 17182
7/31/94 15850 16479 15435 17339
7/31/95 16694 17813 16271 18866
7/31/96 17351 18552 16839 19867
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return
-------------------------------------------------------------
As of Since
7/31/96 1 Year 5 Year Inception
------- ------ --------- ---------
<S> <C> <C> <C>
Class A* 0.35% 5.73% 6.63%
Class C** 3.49% 5.65% 6.26%
Class Y 4.15% 6.95% 7.46%
</TABLE>
* Reflects 3.50% Sales Charge
** Reflects Applicable Contingent Deferred Sales Charge
The performance of the Qualivest Intermediate Bond Fund is measured against the
Lehman Brothers Intermediate Government/ Corporate Bond Index, an unmanaged
index generally representative of the performance of intermediate government
and corporate bonds. The index does not reflect the deduction of expenses
associated with a mutual fund, such as investment management and fund
accounting fees. The Fund's performance reflects the deduction of fees for
these value-added services. Past performance is not indicative of future
results. The investment return and NAV will fluctuate, so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
The quoted performance of the Fund includes performance of certain collective
trust fund ("Commingled") accounts advised by Qualivest Capital Management for
periods dating back to January 1, 1988 and prior to the Fund's commencement of
operations on August 1, 1994, as adjusted to reflect the expenses associated
with the Fund. The Commingled accounts were not registered with the Securities
and Exchange Commission and, therefore, were not subject to the investment
restrictions imposed by law on registered mutual funds. If the Commingled
accounts had been registered, the Commingled accounts' performance may have
been adversely affected.
The Qualivest Intermediate Bond Fund is managed by Curry Garvin, CFA, who has
more than 10 years' experience in financial analysis and portfolio management.
Prior to joining Qualivest, he was a credit analyst and commercial loan officer
for U.S. Bank. Mr. Garvin also has a bachelor's degree in finance.
WHAT FACTORS AFFECTED YOUR PERFORMANCE?
CURRY GARVIN: We had a significant decline in intermediate-term interest rates
during the latter half of calendar 1995, which boosted bond prices. In fact, we
closed out calendar 1995 with the lowest yields of the year. From a duration
standpoint (the degree to which the portfolio is affected by changes in interest
rates), we had been somewhat longer than our benchmark, which worked out very
well. In a falling interest-rate environment, a bond portfolio with a
longer-than-average duration may outperform its benchmark. In January, we
maintained that posture, expecting slower economic conditions and possibly a
recession. Instead, the bond market was scared by employment reports that
exceeded expectations, causing investors to fear that the Federal Reserve Board
would raise interest rates to ward off inflation. Between February and May,
intermediate-term interest rates rose sharply, and bond prices fell.
-15-
<PAGE> 18
In March, we adjusted the duration of the portfolio to a more neutral posture
and have remained there. Interest rates have since come down as inflation
expectations waned.
HOW HAS THE PORTFOLIO CHANGED DURING THE YEAR?
CURRY GARVIN: We've maintained very high credit quality throughout the entire
year. When interest rates are moving up, people become jittery about bonds with
questionable liquidity. We're probably overweighted in A-rated credits compared
to BBB corporate bonds, but unfortunately, BBBs have been the best-performing
sector of the investment-grade world. I haven't made many changes in the
corporate area because there hasn't been much opportunity to do so.
YOU OWN BONDS ISSUED BY ENRON, THE LARGE HOUSTON ENERGY COMPANY. WHAT IS YOUR
VIEW OF THEIR ACQUISITION OF PORTLAND GENERAL CORPORATION?
CURRY GARVIN: Although it's too early to tell until the rating agencies make
their in-depth assessment, I think it's going to be good for Enron. The company
has made acquisitions all over the world, and they know what they're doing. I
also like another Oregon-based utility, Pacificorp, which is probably one of the
best nonnuclear utilities in the nation. As state regulators begin to allow
customers to select their electricity sources, Pacificorp is well positioned to
sell surplus power to California.*
WHY HAVE YOU ADDED MORTGAGE-BACKED SECURITIES?
CURRY GARVIN: First, they carry very attractive yield spreads relative to
Treasuries. Second, as interest rates have been in a trading range over the last
three to four months of the fiscal year, the likelihood of homeowners
refinancing the underlying mortgages is very low. Meanwhile, the securities
offer extra yield. As a result, I have lowered the Fund's exposure to Treasuries
and added mortgage-backed and agency issues. I haven't given any additional
emphasis to corporates because, in my opinion, corporate yield spreads relative
to Treasuries are still too tight.
WHAT IS YOUR OUTLOOK FOR THE REST OF 1996?
CURRY GARVIN: There are signs in retail and auto sales that the economy is
slowing a little bit. One thing that is coming home to roost is consumer
installment debt. Consumer credit has been growing at an unsustainable rate.
With credit card delinquencies on the rise, it's not likely that consumers are
going to be able to continue to increase their spending at the same rate. As a
result, it is less likely that the Federal Reserve will raise interest rates to
slow the economy, and that may be positive for the bond market.
* The portfolio's composition is subject to change.
-16-
<PAGE> 19
QUALIVEST DIVERSIFIED BOND FUND
"We're not going to try to time the market."--John McCune
For the year ended July 31, 1996, the Fund produced a total return of 3.79% (A
shares at NAV). In comparison, the Lehman Brothers Aggregate Bond Index returned
5.52% for the 12-month period.
QUALIVEST DIVERSIFIED BOND FUND
VALUE OF A $10,000 INVESTMENT
<TABLE>
<CAPTION>
MEASUREMENT PERIOD LEHMAN
(FISCAL YEAR COVERED) CLASS A* CLASS Y CLASS C** AGGREGATE
<S> <C> <C> <C> <C>
5/02/95 9653 10000 10000 10000
7/31/95 9949 10458 10238 10440
7/31/96 10326 10910 10196 11016
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return
---------------------------------------------
Since
As of Inception
7/31/96 1 Year (5/2/95)
------- ------ ---------
<S> <C> <C>
Class A* 0.15% 2.80%
Class C** -1.37% 1.57%
Class Y 4.33% 7.22%
</TABLE>
* Reflects 3.50% Sales Charge
** Reflects Applicable Contingent Deferred Sales Charge
The performance of the Qualivest Diversified Bond Fund is measured against an
index that is a composite of the Lehman Brothers Aggregate Bond Index and the
Lehman Brothers Government/Corporate Bond Index, with each index given a 50%
weighting. Both indices are broad measures of the performance of the U.S. bond
market. The indices do not reflect the deduction of expenses associated with a
mutual fund, such as investment management and fund accounting fees. The
Fund's performance reflects the deduction of fees for these value-added
services. Past performance is not indicative of future results. The investment
return and NAV will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than the original cost.
The Qualivest Diversified Bond Fund is managed by John McCune, who has nine
years' experience in financial analysis and portfolio management. Mr. McCune
holds an MBA from UCLA and a bachelor's degree in finance from Brigham Young
University.
WHAT FACTORS AFFECTED YOUR PERFORMANCE DURING THE FISCAL YEAR ENDED JULY 31,
1996?
JOHN MCCUNE: On an absolute basis, bonds performed fairly well between August
1995 and February 1996, poorly from February to June and then outperformed
stocks in June and July. Bond prices are inversely related to movements in
interest rates. Long-term interest rates started the fiscal year below 7%, fell
to 6% at December 31, peaked at 7.2% in the spring and then finished the fiscal
year below 7% on July 31, 1996.
The biggest factor affecting relative performance was our slight underweighting
in mortgage-backed issues, which performed well. Generally, you pick up yield
with these securities as long as interest rates don't rise too much. We're not
going to vary substantially from our benchmarks because most of our investors
are not willing to take the risk required to do that. First, we're not going to
try to time the market. That would be expensive, and it is very difficult to do.
Second, we're not going to use derivatives. And third, we're not going to invest
in high credit-risk securities. These steps would have been necessary to
increase our returns substantially over the past year.
-17-
<PAGE> 20
WHAT IS YOUR CURRENT STRATEGY?
JOHN MCCUNE: We're in a very volatile interest-rate environment with mixed
economic data, so we are neutral on duration (the degree to which the portfolio
is affected by changes in interest rates). We're trying to add value by
overweighting mortgage-backed securities. In general, we have reduced our
holdings of corporate bonds because the yield spreads over U.S. Treasury bonds
are not compelling. However, we have made some recent corporate bond purchases
that we think offer good value. One recent purchase was AirTouch Communications,
which provides wireless telecommunications services worldwide. Rated A by
Standard & Poor's, the company is well diversified, with interests in a
long-distance telephone company in Japan, a credit-card verification service and
a mobile telephone service.
The overall rating of the corporate bonds in the portfolio is AA. Since
corporates comprise only 12% of the portfolio and virtually everything else in
the portfolio is rated AAA, the credit quality of the portfolio's holdings as a
whole is also AAA. In general, there is very little extra yield offered by
reducing credit quality.*
WHAT IS YOUR OUTLOOK FOR THE FUND?
JOHN MCCUNE: The market rebounded in early August because investors had
previously expected the Federal Reserve Board to raise short-term interest
rates, and that expectation was priced into the market. In anticipation of lower
interest rates, however, we extended the duration of the portfolio in July 1996,
and we are seeing the benefits in August. Because the economy is slowing, we
think that long-term interest rates could get down below 6.5%. If you look at
the economic indicators, the economy is moderating. Capital spending is growing
at half the 1995 growth rate. Retail sales are starting to slow down. The Fed
seems to agree, which is why it didn't tighten the money supply in August.
*The portfolio's composition is subject to change.
-18-
<PAGE> 21
QUALIVEST MONEY MARKET FUNDS(1)
- - Qualivest Money Market Fund is comprised primarily of commercial
paper--high-quality short-term debt issued by blue-chip corporations. As of
July 31, 1996, the Money Market Fund offered a seven-day yield of 4.48% and an
effective seven-day yield of 4.57% (Class A shares). As of July 31, 1996, the
Fund's average maturity was 52 days.
- - Qualivest U.S. Treasury Money Market Fund is comprised primarily of short-term
U.S. Treasury securities. As of July 31, 1996, the U.S. Treasury Money Market
Fund offered an effective seven-day yield of 4.67% and a seven-day yield of
4.56% (Class A shares). As of July 31, 1996, the Fund's average maturity was
70 days.
- - Qualivest Tax-Free Money Market Fund (2) is comprised primarily of short-term
tax-free municipal securities. As of July 31, 1996, the Tax-Free Money Market
Fund offered an effective seven-day yield of 2.49% and a seven-day yield of
2.46% (Class A shares). As of July 31, 1996, the Fund's average maturity was
49 days.
The Qualivest Money Market Funds are managed by John Coulter, who has more than
30 years' experience in the investment field.
WHAT FACTORS AFFECTED YOUR PERFORMANCE?
JOHN COULTER: During the past 12 months, the Federal Reserve Board cut
short-term interest rates from 5.50% to 5.25%. Our money market funds had longer
maturities last year in the early part of 1996, with the expectation that rates
were going to continue to come down. However, in early March, some surprisingly
strong employment statistics came out that caused concern about a much stronger
economy than had been expected. Instead of lowering rates further, the Fed held
tight, causing concern about a rate increase to head off a resurgence in
inflation. Since mid-July, short-term rates have been in a holding pattern as
the markets have been trying to sort out the economic reports. Although some
people are concerned about renewed inflation, they're in the minority now. Later
economic reports have confirmed that some of the things we saw earlier this year
were just blips, and the economy is not out of control.
GIVEN THE CURRENT ENVIRONMENT, WHAT HAS BEEN YOUR STRATEGY?
JOHN COULTER: We're trying to take advantage of attractive rates on
longer-maturing securities, especially beyond 90 days. You may recall that six
months ago, the short-term yield curve was inverted--securities with shorter
maturities had higher yields than those with longer maturities. The normal
situation is that rates will be higher the further out you go, so the rate at 60
days will be higher than 30 days, and 90 will be higher than 60 and so on. By
spring, we built up the average maturity of all money market funds.
WHAT IS YOUR VIEW OF THE SHORT-TERM TAX-FREE MARKET?
JOHN COULTER: It's still a challenge to buy Oregon issues because there's so
little out there. And yet, we want to have a fair weighting of Oregon issues in
the Fund to benefit Oregon shareholders. At the same time, we want to be able to
buy Oregon paper at prices that don't disadvantage non-Oregon shareholders. The
challenge is to balance liquidity and the goal of longer-term investment at
higher yields.
WHAT IS YOUR OUTLOOK FOR THE MONEY MARKET FUNDS?
JOHN COULTER: All through the spring and summer, intermediate and long-term
interest rates have been volatile, whereas short-term interest rates have been
stable. Unemployment claims have been drifting upward. Retail sales have slowed.
There was concern about rising commodity prices in the spring, but that has
subsided. With such indications that the economy is, in fact, slowing, we expect
short-term rates to come down during late 1996 and into next year.
(1) An investment in the Funds is neither insured nor guaranteed by the U.S.
Government. Yields will fluctuate, and there can be no assurance the Funds
will be able to maintain a stable NAV of $1.00 per share. If full fees were
charged, the yields for the Qualivest Money Market, U.S. Treasury Money
Market and Tax-Free Money Market Funds would have been 4.48%, 4.30% and
2.13% effective seven-day yield, and 4.38%, 4.21% and 2.11% seven-day
yield.
(2) Some of the income may be subject to the federal alternative minimum tax
and to certain state and local taxes.
-19-
<PAGE> 22
QUALIVEST DYNAMIC ALLOCATION SERIES OF FUNDS
"At Qualivest Capital Management our primary focus is on providing prudent asset
allocation strategies for our clients."--Tim Leach
On May 1, 1996, Qualivest introduced the Qualivest Dynamic Allocation Series of
Funds. The Dynamic Allocation Series is based on the concept of asset
allocation, or diversifying an investment portfolio among the basic asset
classes: stocks and bonds. This approach is guided by the premise that
investment performance is determined primarily by the appropriate mixture of
asset classes rather than by the selection of individual securities. The
investment components of the Funds in the Series are the Qualivest Mutual Funds.
A major benefit of this approach is the diversification it provides within each
Qualivest Fund and through the combination of various Qualivest Funds.
QUALIVEST ALLOCATED CONSERVATIVE FUND
VALUE OF A $10,000 INVESTMENT
<TABLE>
<CAPTION>
MEASUREMENT PERIOD PORTFOLIO 1
(FISCAL YEAR COVERED) CLASS A* CLASS Y INDEX
<S> <C> <C> <C>
5/1/96 9597 10000 10000
5/31/96 9696 10113 10052.41
6/30/96 9705 10123 10126.25
7/31/96 9580 9992 9996.91
</TABLE>
<TABLE>
<CAPTION>
Aggregate Total Return
---------------------------------------------
Since
As of Inception
7/31/96 (5/1/96)
------- ---------
<S> <C>
Class A* -4.20%
Class Y -0.08%
</TABLE>
*Reflects 4.00% Sales Charge
The performance of the Qualivest Allocated Conservative Fund is measured
against a benchmark of blended indices which represent the market of
investments based on the allocation. (20%--S&P 500 Stock Index, 35%--Lehman
Brothers Aggregate Bond Index, 35%--Lehman Intermediate Government/Corporate
Bond Index, 5%--Russell 2000 and 5%--Morgan Stanley International EAFE Index).
The index does not reflect the deduction of expenses associated with a mutual
fund, such as investment management and fund accounting fees. The Fund's
performance reflects the deduction of fees for these value-added services.
Past performance is not indicative of future results. The investment return
and NAV will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
- - The Allocated Conservative Fund is designed for investors who want a steady
source of investment income with some capital appreciation and who are most
comfortable with limited investment risk. As of July 31, 1996, the Fund's
portfolio allocation was 65% Qualivest bond funds and 33% Qualivest equity
funds.+ For the three months ended July 31, 1996, the Fund produced a total
return of -0.20% for (A shares at NAV).
+ The composition of the fund's portfolio is subject to change.
-20-
<PAGE> 23
QUALIVEST ALLOCATED BALANCED FUND
VALUE OF A $10,000 INVESTMENT
<TABLE>
<CAPTION>
MEASUREMENT PERIOD PORFOLIO 1
(FISCAL YEAR COVERED) CLASS A* CLASS Y INDEX
<S> <C> <C> <C>
5/1/96 9597 10000 10000
5/31/96 9664 10080 10096.21
6/30/96 9635 10040 10126.26
7/31/96 9375 9779 9847.24
</TABLE>
<TABLE>
<CAPTION>
AGGREGATE TOTAL RETURN
----------------------
SINCE
AS OF INCEPTION
7/31/96 (5/1/96)
------- ---------
<S> <C>
Class A* -6.25%
Class Y -2.21%
</TABLE>
*Reflects 4.00% Sales Charge
The performance of the Qualivest Allocated Balanced Fund is measured against a
benchmark of blended indices which represent the market of investments based
on the allocation. (35%--S&P 500 Stock Index, 25%--Lehman Brothers Aggregate
Bond Index, 15%--Lehman Intermediate Government/Corporate Bond Index,
10%--Russell 2000 and 15%--Morgan Stanley International EAFE Index). The index
does not reflect the deduction of expenses associated with a mutual fund, such
as investment management and fund accounting fees. The Fund's performance
reflects the deduction of fees for these value-added services. Past
performance is not indicative of future results. The investment return and NAV
will fluctuate, so that an investor's shares, when redeemed, may be worth more
or less than the original cost.
- - The Allocated Balanced Fund is designed for investors who seek the potential
for both capital appreciation and current income and who want greater capital
appreciation potential than the Allocated Conservative Fund. As of July 31,
1996, the Fund's portfolio allocation was 60% Qualivest equity funds and 40%
Qualivest bond funds.* For the three months ended July 31, 1996, the Fund
produced a total return of -2.31% for (A shares at NAV).
QUALIVEST ALLOCATED GROWTH FUND
VALUE OF A $10,000 INVESTMENT
<TABLE>
<CAPTION>
MEASUREMENT PERIOD PORTFOLIO 1
(FISCAL YEAR COVERED) CLASS A* CLASS Y INDEX
<S> <C> <C> <C>
5/1/96 9597 10000 10000
5/31/96 9817 10209 10135.42
6/30/96 9749 10109 10127.28
7/31/96 9374 9748 9738.83
</TABLE>
<TABLE>
<CAPTION>
AGGREGATE TOTAL RETURN
----------------------
SINCE
AS OF INCEPTION
7/31/96 (5/1/96)
------- ---------
<S> <C>
Class A* -6.26%
Class Y -2.52%
</TABLE>
*Reflects 4.00% Sales Charge
The performance of the Qualivest Allocated Growth Fund is measured against a
benchmark of blended indices which represent the market of investments based
on the allocation. (45%--S&P 500 Stock Index, 15%--Lehman Brothers Aggregate
Bond Index, 5%--Lehman Intermediate Government/Corporate Bond Index,
15%--Russell 2000 and 20%--Morgan Stanley International EAFE Index). The index
does not reflect the deduction of expenses associated with a mutual fund, such
as investment management and fund accounting fees. The Fund's performance
reflects the deduction of fees for these value-added services. Past
performance is not indicative of future results. The investment return and NAV
will fluctuate, so that an investor's shares, when redeemed, may be worth more
or less than the original cost.
- - The Allocated Growth Fund is designed for investors who seek long-term capital
appreciation with some current income and who want greater price stability
than the Allocated Aggressive Fund. As of July 31, 1996, the Fund's portfolio
allocation was 80% Qualivest equity funds and 20% Qualivest bond funds.* For
the three months ended July 31, 1996, the Fund produced a total return of
-2.32% for (A shares at NAV).
-21-
<PAGE> 24
QUALIVEST ALLOCATED AGGRESSIVE FUND
VALUE OF A $10,000 INVESTMENT
<TABLE>
<CAPTION>
MEASUREMENT PERIOD PORTFOLIO 1
(FISCAL YEAR COVERED) CLASS A* CLASS Y INDEX
<S> <C> <C> <C>
5/1/96 9597 10000 10000
5/31/96 9879 10254 10175.22
6/30/96 9715 10093 10127.48
7/31/96 9273 9622 9629.76
</TABLE>
<TABLE>
<CAPTION>
AGGREGATE TOTAL RETURN
----------------------
SINCE
AS OF INCEPTION
7/31/96 (5/1/96)
- ------- ---------
<S> <C>
Class A* -7.28%
Class Y -3.78%
</TABLE>
* Reflects 4.00% Sales Charge
The performance of the Qualivest Allocated Aggressive Fund is measured against
a benchmark of blended indices which represent the market of investments based
on the allocation. (55%--S&P 500 Stock Index, 20%--Russell 2000 and
25%--Morgan Stanley International EAFE Index). The index does not reflect the
deduction of expenses associated with a mutual fund, such as investment
management and fund accounting fees. The Fund's performance reflects the
deduction of fees for these value-added services. Past performance is not
indicative of future results. The investment return and NAV will fluctuate, so
that an investor's shares, when redeemed, may be worth more or less than the
original cost.
- - The Allocated Aggressive Fund is designed for investors who seek long-term
capital appreciation and can accept more investment risk in exchange for
higher potential returns. As of July 31, 1996, the Fund's portfolio allocation
was 100% Qualivest equity funds.* For the three months ended July 31, 1996,
the Fund produced a total return of -3.38% for (A shares at NAV).
The Qualivest Dynamic Allocation Series of Funds is managed by Tim Leach, Chief
Investment Officer for Qualivest Capital Management, investment adviser to the
Qualivest Funds. Mr. Leach has more than 15 years' experience in the investment
field.
WHY HAVE YOU INTRODUCED THE QUALIVEST DYNAMIC ALLOCATION SERIES OF FUNDS?
TIM LEACH: At Qualivest Capital Management, our primary focus is on providing
prudent asset allocation strategies. Far too often within the investment world,
decisions get focused on individual securities or funds rather than on an
overall investment plan. However, the vast majority of investment performance
return comes from the structure of the asset allocation of the portfolio itself.
The fund of funds that we've created is a group of portfolios wholly diversified
in and of themselves. Our primary objective is to assess our clients' investment
objectives and risk tolerance to determine which of the four portfolios best
meet their overall needs. For example, an investor who requires income because
he or she is getting close to retirement and is less willing to take on risk
would find the Allocated Conservative Fund most appropriate. On the other hand,
a young person just starting out in the working world might have a very
different attitude toward risk and could find the Allocated Aggressive Fund to
be more appropriate.
HOW WOULD YOU ASSESS THE FUNDS' PERFORMANCE SINCE MAY 1, 1996?
TIM LEACH: This particular three-month period was a poor one for domestic and
international stocks, as well as bonds. May was a particularly poor month for
bonds, as interest rates rose sharply. In May and June, high technology stocks
based in the U.S. fell sharply. Indeed, during the three-month period, the
benchmark Russell 2000, a basic index of small-company stock performance, was
down 9%. International stocks, as measured by the Morgan Stanley International
Europe, Australia and Far East (EAFE) Index, was down 4%. However, the markets
improved in late July and early August. The investment horizon for anyone
investing in these Funds should be at least three to five years, not three
months.
*The composition of the Fund's portfolio is subject to change.
-22-
<PAGE> 25
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Trustees of
Qualivest Funds
We have audited the accompanying statements of assets and liabilities including
the schedules of portfolio investments of Qualivest Funds (the "Funds"),
including Qualivest Money Market Fund, Qualivest U.S. Treasury Money Market
Fund, Qualivest Tax-Free Money Market Fund, Qualivest Intermediate Bond Fund,
Qualivest Small Companies Value Fund, Qualivest Large Companies Value Fund,
Qualivest Optimized Stock Fund, Qualivest Diversified Bond Fund, Qualivest
International Opportunities Fund, Qualivest Allocated Conservative Fund,
Qualivest Allocated Balanced Fund, Qualivest Allocated Growth Fund, and
Qualivest Allocated Aggressive Fund as of July 31, 1996, the related statements
of operations for the periods then ended, and the statements of changes in net
assets and the financial highlights for the periods presented. These financial
statements are the responsibility of the Funds' management. Our responsibility
is to express an opinion on these financial statements 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 July
31, 1996 by correspondence with the Funds' custodians 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, such financial statements present fairly, in all material
respects, the financial position of Qualivest Funds at July 31, 1996, the
results of their operations, the changes in their net assets, and the financial
highlights for the respective stated periods, in conformity with generally
accepted accounting principles.
DELOITTE & TOUCHE LLP
Dayton, Ohio
September 12, 1996
-23-
<PAGE> 26
QUALIVEST FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 1996
<TABLE>
<CAPTION>
U.S.
MONEY TREASURY TAX-FREE
MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS:
Investments, at Amortized cost (Amortized cost $391,482,173; $123,065,508 and
$34,901,268, respectively).................................................. $391,482,173 $123,065,508 $34,901,268
Repurchase agreements (Amortized cost $56,643,969; $0 and $0,
respectively)............................................................... 56,643,969 -- --
------------ ------------ ------------
Total Investments............................................................ 448,126,142 123,065,508 34,901,268
Interest receivable.......................................................... 553,124 791,237 261,307
Receivable from capital shares issued........................................ -- -- 107
Prepaid expenses............................................................. 13,076 4,086 1,342
------------ ------------ ------------
Total Assets.......................................................... 448,692,342 123,860,831 35,164,024
------------ ------------ ------------
LIABILITIES:
Distributions payable........................................................ 1,780,761 483,454 64,880
Payable for investments purchased............................................ -- -- 1,031,080
Accrued expenses and other payables:
Investment advisory fees.................................................. 96,390 -- --
Administration fees....................................................... 12,929 3,686 711
Distribution and shareholder service fees (Class A)....................... 78,543 30,883 10,509
Distribution and shareholder service fees (Class Q)....................... -- 5,931 578
Accounting and transfer agent fees........................................ 7,995 6,163 5,064
Legal and audit fees...................................................... 35,797 11,411 7,659
Printing fees............................................................. 20,167 9,355 2,897
Other..................................................................... 15,245 5,562 2,502
------------ ------------ ------------
Total Liabilities..................................................... 2,047,827 556,445 1,125,880
------------ ------------ ------------
NET ASSETS:
Capital...................................................................... 446,644,324 123,304,386 34,036,826
Accumulated undistributed net realized gains from investment transactions.... 191 -- 1,318
------------ ------------ ------------
Net Assets............................................................ $446,644,515 $123,304,386 $34,038,144
============ ============ ============
Net Assets
Class A................................................................... $231,819,206 $89,756,481 $30,143,070
Class Y................................................................... 100,467,756 320,795 723,020
Class Q................................................................... 114,357,553 33,227,110 3,172,054
------------ ------------ ------------
Total................................................................. $446,644,515 $123,304,386 $34,038,144
============ ============ ============
Outstanding units of beneficial interest (shares)
Class A................................................................... 231,820,568 89,756,481 30,141,729
Class Y................................................................... 100,468,124 320,795 723,055
Class Q................................................................... 114,355,632 33,227,110 3,172,042
------------ ------------ ------------
Total................................................................. 446,644,324 123,304,386 34,036,826
============ ============ ============
Net asset value--offering and redemption price per share
Class A................................................................... $ 1.00 $ 1.00 $ 1.00
Class Y................................................................... $ 1.00 $ 1.00 $ 1.00
Class Q................................................................... $ 1.00 $ 1.00 $ 1.00
============ ============ ============
</TABLE>
See notes to financial statements.
-24-
<PAGE> 27
QUALIVEST FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 1996
<TABLE>
<CAPTION>
INTERMEDIATE DIVERSIFIED SMALL COMPANIES
BOND FUND BOND FUND VALUE FUND
------------ ------------ ---------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (Cost $149,090,521; $182,083,145; and $259,052,736,
respectively)............................................................ $147,976,631 $178,264,206 $ 295,736,175
Repurchase agreements (Cost $5,515,944; $2,531,965 and $12,249,283,
respectively)............................................................ 5,515,944 2,531,965 12,249,283
------------ ------------ ---------------
Total Investments......................................................... 153,492,575 180,796,171 307,985,458
Interest and distributions receivable..................................... 2,557,775 2,862,073 305,172
Receivable for investments sold........................................... 2,914,680 -- 637,584
Receivable for capital shares issued...................................... -- -- 30,657
Unamortized organization costs............................................ -- 1,457 --
Prepaid expenses.......................................................... 5,340 4,900 18,409
------------ ------------ ---------------
Total Assets....................................................... 158,970,370 183,664,601 308,977,280
------------ ------------ ---------------
LIABILITIES:
Payable for capital shares redeemed....................................... -- -- 10,587
Payable for investments purchased......................................... -- -- 664,304
Accrued expenses and other payables:
Investment advisory fees............................................... 60,455 45,524 207,877
Administration fees.................................................... 4,514 5,187 8,508
Distribution and shareholder service fees (Class A).................... 115 61 1,968
Distribution and shareholder service fees (Class C).................... 93 7 1,039
Accounting and transfer agent fees..................................... 7,627 5,837 1,356
Legal and audit fees................................................... 11,662 13,305 17,763
Printing fees.......................................................... 9,493 9,393 14,055
Other.................................................................. 6,543 7,704 10,044
------------ ------------ ---------------
Total Liabilities.................................................. 100,502 87,018 937,501
------------ ------------ ---------------
NET ASSETS:
Capital................................................................... 159,166,878 185,520,877 242,813,307
Undistributed net investment income....................................... 383,393 463,930 174,634
Net unrealized appreciation (depreciation) from investments............... (1,113,890) (3,818,939) 36,683,439
Accumulated undistributed net realized gains from investment
transactions............................................................. 433,487 1,411,715 28,368,399
------------ ------------ ---------------
Net Assets......................................................... $158,869,868 $183,577,583 $ 308,039,779
============== ============== ==================
Net Assets
Class A................................................................ $ 586,345 $ 313,099 $ 9,022,178
Class Y................................................................ 158,173,744 183,255,260 297,793,087
Class C................................................................ 109,779 9,224 1,224,514
------------ ------------ ---------------
Total.............................................................. $158,869,868 $183,577,583 $ 308,039,779
============== ============== ==================
Outstanding units of beneficial interest (shares)
Class A................................................................ 59,138 31,763 646,897
Class Y................................................................ 15,801,869 18,251,188 21,331,709
Class C................................................................ 11,161 978 89,131
------------ ------------ ---------------
Total.............................................................. 15,872,168 18,283,929 22,067,737
============== ============== ==================
Net asset value
Class A--redemption price per share.................................... $ 9.91 $ 9.86 $ 13.95
Class Y--offering and redemption price per share....................... $ 10.01 $ 10.04 $ 13.96
Class C--offering price per share*..................................... $ 9.84 $ 9.44 $ 13.74
============== ============== ==================
Maximum Sales Charge (Class A)............................................ 3.50% 3.50% 4.50%
============== ============== ==================
Maximum Offering Price (100%/(100% - Maximum Sales Charge) of net
asset value adjusted to nearest cent) per share (Class A).............. $ 10.27 $ 10.22 $ 14.61
============== ============== ==================
</TABLE>
- ---------
* Redemption price per share (Class C) varies by length of time shares are held.
See notes to financial statements.
-25-
<PAGE> 28
QUALIVEST FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 1996
<TABLE>
<CAPTION>
INTERNATIONAL
LARGE COMPANIES OPTIMIZED OPPORTUNITIES
VALUE FUND STOCK FUND FUND
--------------- ------------ -------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (Cost $96,950,578; $195,103,442 and $140,471,512,
respectively)........................................................... $ 108,419,480 $218,347,973 $ 144,178,943
Repurchase agreements(Cost $9,703,655; $1,714,993 and $0,
respectively)........................................................... 9,703,655 1,714,993
------------ ------------ ------------
Total Investments........................................................ 118,123,135 220,062,966 144,178,943
Foreign currency......................................................... -- -- 453,354
Interest and distributions receivable.................................... 196,514 349,218 195,605
Receivable for investments sold.......................................... 40,314 -- 54,108
Receivable for capital shares issued..................................... 9,276 4,057 1,066
Unamortized organization costs........................................... -- 1,457 1,925
Prepaid expenses......................................................... 4,183 6,593 37,672
------------ ------------ ------------
Total Assets.......................................................... 118,373,422 220,424,291 144,922,673
------------ ------------ ------------
LIABILITIES:
Payable for investments purchased........................................ 65,820 -- 386,286
Accrued expenses and other payables:
Investment advisory fees.............................................. 60,400 56,197 36,530
Administration fees................................................... 3,312 6,185 4,060
Distribution and shareholder service fees (Class A)................... 965 219 426
Distribution and shareholder service fees (Class C)................... 553 80 15
Accounting and transfer agent fees.................................... 2,568 5,112 4,752
Legal and audit fees.................................................. 7,544 15,300 6,170
Printing fees......................................................... 5,865 10,148 --
Other................................................................. 4,221 8,162 1,892
------------ ------------ ------------
Total Liabilities................................................. 151,248 101,403 440,131
------------ ------------ ------------
NET ASSETS:
Capital.................................................................. 100,268,201 190,000,958 139,914,426
Undistributed net investment income...................................... 417,988 730,609 543,401
Net unrealized appreciation from investments and translation of assets
and liabilities in foreign currencies................................... 11,468,902 23,244,531 3,710,995
Accumulated undistributed net realized gains from investment transactions
and foreign currency transactions....................................... 6,067,083 6,346,790 313,720
------------ ------------ ------------
Net Assets........................................................ $ 118,222,174 $220,322,888 $ 144,482,542
============ ============ ============
Net Assets
Class A............................................................... $ 4,666,270 $ 1,214,458 $ 1,986,371
Class Y............................................................... 112,907,621 219,014,223 142,477,577
Class C............................................................... 648,283 94,207 18,594
------------ ------------ ------------
Total............................................................. $ 118,222,174 $220,322,888 $ 144,482,542
============ ============ ============
Outstanding units of beneficial interest (shares)
Class A............................................................... 391,381 100,392 186,725
Class Y............................................................... 9,422,668 18,066,956 13,333,784
Class C............................................................... 55,254 7,816 1,750
------------ ------------ ------------
Total............................................................. 9,869,303 18,175,164 13,522,259
------------ ------------ ------------
Net asset value
Class A--redemption price per share................................... $ 11.92 $ 12.10 $ 10.64
Class Y--offering and redemption price per share...................... $ 11.98 $ 12.12 $ 10.69
Class C--offering price per share *................................... $ 11.73 $ 12.05 $ 10.63
============ ============ ============
Maximum Sales Charge (Class A)........................................... 4.50% 4.50% 4.50%
============ ============ ============
Maximum Offering Price (100%/(100% - Maximum Sales Charge)
of net asset value adjusted to nearest cent) per share (Class A)...... $ 12.48 $ 12.67 $ 11.15
============ ============ ============
</TABLE>
- ---------
* Redemption price per share (Class C) varies by length of time shares are held.
See notes to financial statements.
-26-
<PAGE> 29
QUALIVEST FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 1996
<TABLE>
<CAPTION>
ALLOCATED ALLOCATED ALLOCATED ALLOCATED
CONSERVATIVE FUND BALANCED FUND GROWTH FUND AGGRESSIVE FUND
----------------- ------------- ----------- ---------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (Cost $7,657,694; $39,401,861;
$11,154,161 and $8,497,472, respectively)............ $ 7,572,284 $38,281,807 $10,800,181 $ 8,207,977
Distributions receivable.............................. 794 3,514 1,261 904
Prepaid expenses...................................... 2,091 4,036 2,019 2,118
--------- ---------- ---------- ----------
Total Assets................................... 7,575,169 38,289,357 10,803,461 8,210,999
--------- ---------- ---------- ----------
LIABILITIES:
Accrued expenses and other payables:
Investment advisory fees........................... 313 1,623 460 317
Administration fees................................ 115 580 163 120
Distribution and shareholder service fees (Class
A)............................................... -- -- -- 1
Accounting and transfer agent fees................. 137 720 208 141
Legal and audit fees............................... 918 3,003 912 913
Printing fees...................................... 782 633 779 779
Other.............................................. 309 162 317 304
--------- ---------- ---------- ----------
Total Liabilities.............................. 2,574 6,721 2,839 2,575
--------- ---------- ---------- ----------
NET ASSETS:
Capital............................................... 7,618,112 39,266,629 11,142,191 8,502,858
Undistributed net investment income................... 39,940 129,894 13,519 --
Net unrealized depreciation from investments.......... (85,410) (1,120,054) (353,980 ) (289,495)
Accumulated undistributed net realized gains (losses)
from investment transactions......................... (47) 6,167 (1,108 ) (4,939)
--------- ---------- ---------- ----------
Net Assets..................................... $ 7,572,595 $38,282,636 $10,800,622 $ 8,208,424
--------- ---------- ---------- ----------
Net Assets
Class A............................................ $ 10 $ 10 $ 10 $ 1,894
Class Y............................................ 7,572,585 38,282,626 10,800,612 8,206,530
--------- ---------- ---------- ----------
Total.......................................... $ 7,572,595 $38,282,636 $10,800,622 $ 8,208,424
========= ========== ========== ==========
Outstanding units of beneficial interest (shares)
Class A............................................ 1 1 1 196
Class Y............................................ 760,357 3,926,891 1,111,690 854,488
--------- ---------- ---------- ----------
Total.......................................... 760,358 3,926,892 1,111,691 854,684
========= ========== ========== ==========
Net asset value
Class A--redemption price per share................ $ 9.95 $ 9.74 $ 9.74 $ 9.64
Class Y--offering and redemption price per share... 9.96 9.75 9.72 9.60
========= ========== ========== ==========
Maximum Sales Charge (Class A)........................ 4.00% 4.00% 4.00% 4.00%
========= ========== ========== ==========
Maximum Offering Price (100%/(100% - Maximum Sales
Charge) of net asset value adjusted to nearest cent)
per share (Class A).................................. $ 10.36 $ 10.15 $ 10.15 $ 10.04
========= ========== ========== ==========
</TABLE>
See notes to financial statements.
-27-
<PAGE> 30
QUALIVEST FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31,1996
<TABLE>
<CAPTION>
MONEY U.S. TREASURY TAX-FREE
MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
----------- --------------- --------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income................................................. $22,339,287 $ 6,034,491 $1,369,015
----------- ---------- ----------
EXPENSES:
Investment advisory fees........................................ 1,401,855 395,220 130,991
Administration fees............................................. 520,684 146,795 48,654
Distribution and shareholder service fees (Class A)............. 911,085 339,102 139,490
Distribution and shareholder service fees (Class Q)............. 230,184 70,164 5,493
Custodian fees.................................................. 120,160 33,876 11,228
Accounting and transfer agent fees.............................. 178,944 105,190 101,016
Legal and audit fees............................................ 60,531 18,656 6,298
Organization costs.............................................. 6,145 2,002 2,002
Trustees' fees and expenses..................................... 27,392 7,258 2,762
Registration and filing fees.................................... 73,524 22,338 8,227
Printing costs.................................................. 50,954 16,935 4,466
Other........................................................... 12,543 3,484 1,464
----------- ---------- ----------
Total expenses before waivers............................... 3,594,001 1,161,020 462,091
Less waivers................................................ (630,724 ) (409,253) (135,115)
----------- ---------- ----------
Net Expenses................................................ 2,963,277 751,767 326,976
----------- ---------- ----------
Net Investment Income........................................... 19,376,010 5,282,724 1,042,039
----------- ---------- ----------
REALIZED GAINS FROM INVESTMENTS:
Net realized gains from investment transactions................. -- -- 1,142
----------- ---------- ----------
Change in net assets resulting from operations.................. $19,376,010 $ 5,282,724 $1,043,181
=========== ========== ==========
</TABLE>
See notes to financial statements.
-28-
<PAGE> 31
QUALIVEST FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31,1996
<TABLE>
<CAPTION>
INTERMEDIATE DIVERSIFIED SMALL COMPANIES
BOND FUND BOND FUND VALUE FUND
------------ ----------- ---------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income...................................................... $ 9,475,798 $ 8,741,161 $ 1,232,175
Dividend income...................................................... -- -- 2,728,455
Foreign tax withholding.............................................. -- -- (19,225)
----------- ----------- -----------
Total Income..................................................... 9,475,798 8,741,161 3,941,405
----------- ----------- -----------
EXPENSES:
Investment advisory fees............................................. 898,208 829,165 2,121,590
Administration fees.................................................. 194,550 179,352 344,477
Distribution and shareholder service fees (Class A).................. 1,329 293 13,804
Distribution and shareholder service fees (Class C).................. 1,259 12 8,592
Custodian fees....................................................... 44,896 41,389 79,495
Accounting and transfer agent fees................................... 126,512 116,556 166,112
Legal and audit fees................................................. 16,466 18,470 37,366
Organization costs................................................... 29,441 3,960 18,248
Trustees' fees and expenses.......................................... 10,159 8,106 15,703
Registration and filing fees......................................... 16,848 36,978 37,190
Printing costs....................................................... 17,590 15,410 28,693
Other................................................................ 6,222 4,392 8,958
----------- ----------- -----------
Total expenses before waivers.................................... 1,363,480 1,254,083 2,880,228
Less waivers..................................................... (224,768 ) (415,278) (1,737)
----------- ----------- -----------
Net Expenses..................................................... 1,138,712 838,805 2,878,491
Net Investment Income................................................ 8,337,086 7,902,356 1,062,914
----------- ----------- -----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains from investment transactions...................... 952,023 1,877,945 34,451,881
Net change in unrealized appreciation (depreciation) from
investments........................................................ (3,464,045 ) (5,431,677) (2,468,172)
----------- ----------- -----------
Net realized/unrealized gains (losses) from investments.............. (2,512,022 ) (3,553,732) 31,983,709
----------- ----------- -----------
Change in net assets resulting from operations....................... $ 5,825,064 $ 4,348,624 $33,046,623
=========== =========== ===========
</TABLE>
See notes to financial statements.
-29-
<PAGE> 32
QUALIVEST FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31,1996
<TABLE>
<CAPTION>
INTERNATIONAL
LARGE COMPANIES OPTIMIZED OPPORTUNITIES
VALUE FUND STOCK FUND FUND
--------------- ----------- -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income..................................................... $ 576,061 $ 111,046 $ 152,106
Dividend income..................................................... 2,310,719 4,393,667 2,454,999
Foreign tax withholding............................................. (2,663) 3,639 (447,171)
---------- ----------- ----------
Total Income.................................................... 2,884,117 4,508,352 2,159,934
---------- ----------- ----------
EXPENSES:
Investment advisory fees............................................ 801,854 957,926 653,161
Administration fees................................................. 138,920 248,800 141,011
Distribution and shareholder service fees (Class A)................. 6,370 1,034 4,961
Distribution and shareholder service fees (Class C)................. 4,850 586 64
Custodian fees...................................................... 32,059 57,416 107,434
Accounting and transfer agent fees.................................. 112,519 148,111 201,644
Legal and audit fees................................................ 15,493 24,931 13,791
Organization costs.................................................. 9,073 3,960 3,769
Trustees' fees and expenses......................................... 6,581 11,218 6,744
Registration and filing fees........................................ 19,922 49,050 29,285
Printing costs...................................................... 12,050 21,048 38,059
Other............................................................... 4,218 6,413 2,384
---------- ----------- ----------
Total expenses before waivers................................... 1,163,909 1,530,493 1,202,307
Less waivers.................................................... (160,684) (383,766) (319,060)
---------- ----------- ----------
Net Expenses.................................................... 1,003,225 1,146,727 883,247
Net Investment Income............................................... 1,880,892 3,361,625 1,276,687
---------- ----------- ----------
REALIZED/UNREALIZED GAINS/(LOSSES) FROM INVESTMENTS:
Net realized gains from investment transactions..................... 8,958,325 8,462,270 315,363
Net realized losses from foreign currency transactions.............. -- -- (231,025)
Net change in unrealized appreciation (depreciation) from
investments....................................................... (2,960,072) 11,602,223 1,148,968
Net change in unrealized appreciation from foreign currency
transactions...................................................... -- -- 3,418
---------- ----------- ----------
Net realized/unrealized gains from investments...................... 5,998,253 20,064,493 1,236,724
---------- ----------- ----------
Change in net assets resulting from operations...................... $ 7,879,145 $23,426,118 $ 2,513,411
========== =========== ==========
</TABLE>
See notes to financial statements.
-30-
<PAGE> 33
QUALIVEST FUNDS
STATEMENTS OF OPERATIONS
FOR THE PERIOD FROM MAY 1, 1996 THROUGH JULY 31,1996 (A)
<TABLE>
<CAPTION>
ALLOCATED ALLOCATED ALLOCATED ALLOCATED
CONSERVATIVE FUND BALANCED FUND GROWTH FUND AGGRESSIVE FUND
----------------- ------------- ----------- ---------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Distribution income............................. $ 63,944 $ 235,030 $ 36,157 $ 15,541
-------- ---------- ---------- ----------
EXPENSES:
Investment advisory fees........................ 768 4,013 950 731
Administration fees............................. 1,166 6,073 1,424 1,105
Distribution and shareholder service fees (Class
A)............................................ -- -- -- 1
Custodian fees.................................. 77 401 95 73
Accounting and transfer agent fees.............. 371 1,953 475 356
Legal and audit fees............................ 1,001 3,276 1,001 1,001
Trustees' fees and expenses..................... 364 364 364 364
Registration and filing fees.................... 728 728 733 728
Printing costs.................................. 822 836 823 822
-------- ---------- ---------- ----------
Total Expenses.............................. 5,297 17,644 5,865 5,181
-------- ---------- ---------- ----------
Net Investment Income........................... 58,647 217,386 30,292 10,360
-------- ---------- ---------- ----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains(losses) from investment
transactions.................................. (47) 6,167 (1,108) (4,939)
Net change in unrealized depreciation from
investments................................... (85,410) (1,120,054) (353,980) (289,495)
-------- ---------- ---------- ----------
Net realized/unrealized losses from
investments................................... (85,457) (1,113,887) (355,088) (294,434)
-------- ---------- ---------- ----------
Change in net assets resulting from
operations.................................... $ (26,810) $ (896,501) $(324,796) $(284,074)
======== ========== ========== ==========
</TABLE>
- ---------
(a) Period from commencement of operations.
See notes to financial statements.
-31-
<PAGE> 34
QUALIVEST FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
U.S. TREASURY TAX-FREE
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
------------------------------- ---------------------------- ---------------------------
YEAR AUGUST 1, YEAR JANUARY 11, YEAR JANUARY 9,
ENDED 1994 TO ENDED 1995 TO ENDED 1995 TO
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
1996 1995(A) 1996 1995(A) 1996 1995(A)
--------------- ------------- ------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income........ $ 19,376,010 $ 12,206,607 $ 5,282,724 $ 1,980,315 $ 1,042,039 $ 611,454
Net realized gains from
investment transactions.... -- 191 -- -- 1,142 176
--------------- ------------- ------------- ------------ ------------ ------------
Change in net assets resulting
from operations.............. 19,376,010 12,206,798 5,282,724 1,980,315 1,043,181 611,630
--------------- ------------- ------------- ------------ ------------ ------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income... (10,656,517) (7,517,425) (3,929,231) (1,825,946) (968,355) (595,397)
DISTRIBUTIONS TO CLASS Y SHAREHOLDERS:
From net investment income... (4,081,900) (3,584,362) (3,788) (15,926) (10,400) (251)
DISTRIBUTIONS TO CLASS Q SHAREHOLDERS:
From net investment income... (4,637,593) (1,104,820) (1,349,705) (138,443) (63,284) (15,806)
--------------- ------------- ------------- ------------ ------------ ------------
Change in net assets from
shareholder distributions.... (19,376,010) (12,206,607) (5,282,724) (1,980,315) (1,042,039) (611,454)
--------------- ------------- ------------- ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued..................... 1,928,774,210 999,519,899 342,623,902 173,929,004 95,124,837 73,695,237
Dividends reinvested......... 15,063,971 7,017,237 5,151,868 1,621,159 1,052,542 528,777
Cost of shares redeemed...... (1,835,702,517) (668,028,476) (307,567,073) (92,454,474) (96,972,871) (39,391,696)
--------------- ------------- ------------- ------------ ------------ ------------
Change in net assets from share
transactions................. 108,135,664 338,508,660 40,208,697 83,095,689 (795,492) 34,832,318
--------------- ------------- ------------- ------------ ------------ ------------
Change in net assets........... 108,135,664 338,508,851 40,208,697 83,095,689 (794,350) 34,832,494
NET ASSETS:
Beginning of period.......... 338,508,851 -- 83,095,689 -- 34,832,494 --
--------------- ------------- ------------- ------------ ------------ ------------
End of period................ $ 446,644,515 $ 338,508,851 $ 123,304,386 $ 83,095,689 $ 34,038,144 $ 34,832,494
=============== ============= ============= ============ ============ ============
SHARE TRANSACTIONS:
Issued....................... 1,928,774,210 999,519,899 342,623,902 173,929,004 95,124,837 73,695,237
Reinvested................... 15,063,971 7,017,236 5,151,868 1,621,159 1,052,542 528,778
Redeemed..................... (1,835,702,517) (668,028,475) (307,567,073) (92,454,474) (96,972,871) (39,391,697)
--------------- ------------- ------------- ------------ ------------ ------------
Change in shares............... 108,135,664 338,508,660 40,208,697 83,095,689 (795,492) 34,832,318
=============== ============= ============= ============ ============ ============
</TABLE>
- ---------
(a) Period from commencement of operations.
See notes to financial statements.
-32-
<PAGE> 35
QUALIVEST FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERMEDIATE DIVERSIFIED SMALL COMPANIES
BOND FUND BOND FUND VALUE FUND
---------------------------- -------------------------- ---------------------------
YEAR AUGUST 1, YEAR MAY 2, YEAR AUGUST 1,
ENDED 1994 TO ENDED 1995 TO ENDED 1994 TO
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
1996 1995(A) 1996 1995(A) 1996 1995(A)
------------ ------------- ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income............. $ 8,337,086 $ 12,847,168 $ 7,902,356 $ 1,433,251 $ 1,062,914 $ 2,051,252
Net realized gains (losses) from
investment transactions......... 952,023 (484,433) 1,877,945 1,259,526 34,451,881 12,935,310
Net change in unrealized
appreciation (depreciation) from
investments..................... (3,464,045) 2,350,155 (5,431,677) 1,612,738 (2,468,172) 39,151,611
------------ ------------- ------------ ------------ ------------ ------------
Change in net assets resulting from
operations........................ 5,825,064 14,712,890 4,348,624 4,305,515 33,046,623 54,138,173
------------ ------------- ------------ ------------ ------------ ------------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment income........ (28,845) (12,070) (6,473) -- (12,944) (3,886)
In excess of net investment
income.......................... -- -- -- -- (348) --
From net realized gains from
investment transactions......... (120) -- (1,356) -- (266,703) (1,361)
DISTRIBUTIONS TO CLASS Y
SHAREHOLDERS:
From net investment income........ (8,226,339) (12,523,176) (7,654,293) (1,211,429) (1,049,662) (1,843,319)
In excess of net investment
income.......................... -- -- -- -- (28,247) --
From net realized gains from
investment transactions......... (33,732) -- (1,723,809) -- (17,878,500) (818,817)
DISTRIBUTIONS TO CLASS C
SHAREHOLDERS:
From net investment income........ (5,766) (4,882) (73) -- (317) (809)
From net realized gains from
investment transactions......... (34) -- -- -- (52,906) (505)
------------ ------------- ------------ ------------ ------------ ------------
Change in net assets from
shareholder distributions......... (8,294,836) (12,540,128) (9,386,004) (1,211,429) (19,289,627) (2,668,697)
------------ ------------- ------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued....... 64,422,296 286,664,786 91,547,557 95,041,030 126,977,542 199,455,293
Dividends reinvested.............. 8,041,886 12,471,729 9,032,688 1,211,429 19,203,383 2,664,777
Cost of shares redeemed........... (53,037,282) (159,396,537) (11,311,827) -- (63,092,760) (42,394,928)
------------ ------------- ------------ ------------ ------------ ------------
Change in net assets from share
transactions...................... 19,426,900 139,739,978 89,268,418 96,252,459 83,088,165 159,725,142
------------ ------------- ------------ ------------ ------------ ------------
Change in net assets................ 16,957,128 141,912,740 84,231,038 99,346,545 96,845,161 211,194,618
NET ASSETS:
Beginning of period............... 141,912,740 -- 99,346,545 -- 211,194,618 --
------------ ------------- ------------ ------------ ------------ ------------
End of period..................... $158,869,868 $ 141,912,740 $183,577,583 $99,346,545 $308,039,779 $211,194,618
============ ============= ============ ============ ============ ============
SHARE TRANSACTIONS:
Issued............................ 6,326,763 28,723,642 8,900,490 9,499,716 9,165,038 19,579,283
Reinvested........................ 791,062 1,261,928 874,967 116,790 1,494,582 255,335
Redeemed.......................... (5,220,893) (16,010,334) (1,108,034) -- (4,525,438) (3,901,063)
------------ ------------- ------------ ------------ ------------ ------------
Change in shares.................... 1,896,932 13,975,236 8,667,423 9,616,506 6,134,182 15,933,555
============ ============= ============ ============ ============ ============
</TABLE>
- ---------
(a) Period from commencement of operations.
See notes to financial statements.
-33-
<PAGE> 36
QUALIVEST FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LARGE COMPANIES OPTIMIZED INTERNATIONAL
VALUE FUND STOCK FUND OPPORTUNITIES FUND
--------------------------- --------------------------- --------------------------
YEAR AUGUST 1, YEAR MAY 2, YEAR JULY 3,
ENDED 1994 TO ENDED 1995 TO ENDED 1995 TO
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
1996 1995(A) 1996 1995(A) 1996 1995(A)
------------ ------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income.............. $ 1,880,892 $ 2,149,380 $ 3,361,625 $ 830,048 $ 1,276,687 $ 48,989
Net realized gains from investment
transactions..................... 8,958,325 5,364,361 8,462,270 589,477 315,363 --
Net realized losses from foreign
currency transactions............ -- -- -- -- (231,025) (347)
Net change in unrealized
appreciation from investments.... (2,960,072) 14,428,974 11,602,223 11,642,308 1,148,968 2,558,463
Net change in unrealized
appreciation from foreign
currency......................... -- -- -- -- 3,418 146
------------ ------------ ------------ ------------ ------------ -----------
Change in net assets resulting from
operations......................... 7,879,145 21,942,715 23,426,118 13,061,833 2,513,411 2,607,251
------------ ------------ ------------ ------------ ------------ -----------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment income......... (35,005) (6,010) (4,963) -- (8,763) --
From net realized gains from
investment transactions.......... (129,974) (728) (4,341) -- (38) --
DISTRIBUTIONS TO CLASS Y
SHAREHOLDERS:
From net investment income......... (1,756,110) (1,808,153) (3,150,517) (304,905) (542,120) --
From net realized gains from
investment transactions.......... (7,767,356) (329,398) (2,699,756) -- (1,605) --
DISTRIBUTIONS TO CLASS C
SHAREHOLDERS:
From net investment income......... (5,161) (1,845) (660) (19) (20) --
From net realized gains from
investment transactions.......... (27,868) (279) (860) -- -- --
------------ ------------ ------------ ------------ ------------ -----------
Change in net assets from shareholder
distributions...................... (9,721,474) (2,146,413) (5,861,097) (304,924) (552,546) --
------------ ------------ ------------ ------------ ------------ -----------
CAPITAL TRANSACTIONS:
Proceeds from shares issued........ 51,611,609 139,900,941 70,019,637 135,984,845 93,375,001 57,498,097
Dividends reinvested............... 9,546,835 2,137,516 5,767,679 303,589 468,557 --
Cost of shares redeemed............ (40,548,298) (62,380,402) (21,866,911) (207,881) (11,414,929) (12,300)
------------ ------------ ------------ ------------ ------------ -----------
Change in net assets from share
transactions....................... 20,610,146 79,658,055 53,920,405 136,080,553 82,428,629 57,485,797
------------ ------------ ------------ ------------ ------------ -----------
Change in net assets................. 18,767,817 99,454,357 71,485,426 148,837,462 84,389,494 60,093,048
NET ASSETS:
Beginning of period................ 99,454,357 -- 148,837,462 -- 60,093,048 --
------------ ------------ ------------ ------------ ------------ -----------
End of period...................... $118,222,174 $ 99,454,357 $220,322,888 $148,837,462 $144,482,542 $60,093,048
============ ============ ============ ============ ============ ===========
SHARE TRANSACTIONS:
Issued............................. 4,166,612 13,756,476 5,892,190 13,583,334 8,816,810 5,735,248
Reinvested......................... 839,075 208,032 492,903 29,590 44,496 --
Redeemed........................... (3,265,999) (5,834,893) (1,803,663) (19,190) (1,073,107) (1,188)
------------ ------------ ------------ ------------ ------------ -----------
Change in shares..................... 1,739,688 8,129,615 4,581,430 13,593,734 7,788,199 5,734,060
============ ============ ============ ============ ============ ===========
</TABLE>
- ---------
(a) Period from commencement of operations.
See notes to financial statements.
-34-
<PAGE> 37
QUALIVEST FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
ALLOCATED ALLOCATED
CONSERVATIVE BALANCED
FUND FUND
---------------- ----------------
FOR THE PERIOD FOR THE PERIOD
FROM MAY 1, 1996 FROM MAY 1, 1996
THROUGH THROUGH
JULY 31, 1996(A) JULY 31, 1996(A)
---------------- ----------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income......................................................... $ 58,647 $ 217,386
Net realized gains (losses) from investment transactions...................... (47) 6,167
Net change in unrealized depreciation from investments........................ (85,410) (1,120,054)
--------- ----------
Change in net assets resulting from operations.................................. (26,810) (896,501)
--------- ----------
DISTRIBUTIONS TO CLASS Y SHAREHOLDERS:
From net investment income.................................................... (18,707) (87,492)
--------- ----------
Change in net assets from shareholder distributions............................. (18,707) (87,492)
--------- ----------
CAPITAL TRANSACTIONS:
Proceeds from shares issued................................................... 7,728,026 39,938,939
Dividends reinvested.......................................................... -- 77,746
Cost of shares redeemed....................................................... (109,914) (750,056)
--------- ----------
Change in net assets from share transactions.................................... 7,618,112 39,266,629
--------- ----------
Change in net assets............................................................ 7,572,595 38,282,636
NET ASSETS:
Beginning of period........................................................... -- --
--------- ----------
End of period................................................................. $7,572,595 $ 38,282,636
========= ==========
SHARE TRANSACTIONS:
Issued........................................................................ 771,456 3,995,654
Reinvested.................................................................... -- 7,698
Redeemed...................................................................... (11,098) (76,460)
--------- ----------
Change in shares................................................................ 760,358 3,926,892
========= ==========
</TABLE>
- ---------
(a) Period from commencement of operations.
See notes to financial statements.
-35-
<PAGE> 38
QUALIVEST FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
ALLOCATED ALLOCATED
GROWTH AGGRESSIVE
FUND FUND
---------------- ----------------
FOR THE PERIOD FOR THE PERIOD
FROM MAY 1, 1996 FROM MAY 1, 1996
THROUGH THROUGH
JULY 31, 1996(A) JULY 31, 1996(A)
---------------- ----------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income......................................................... $ 30,292 $ 10,360
Net realized losses from investment transactions.............................. (1,108) (4,939)
Net change in unrealized depreciation from investments........................ (353,980) (289,495)
---------- ----------
Change in net assets resulting from operations.................................. (324,796) (284,074)
---------- ----------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income.................................................... -- (4)
DISTRIBUTIONS TO CLASS Y SHAREHOLDERS:
From net investment income.................................................... (16,773) (10,356)
Tax return of capital......................................................... -- (1,452)
---------- ----------
Change in net assets from shareholder distributions............................. (16,773) (11,812)
---------- ----------
CAPITAL TRANSACTIONS:
Proceeds from shares issued................................................... 11,303,551 9,805,661
Dividends reinvested.......................................................... 1,099 10,396
Cost of shares redeemed....................................................... (162,459) (1,311,747)
---------- ----------
Change in net assets from share transactions.................................... 11,142,191 8,504,310
---------- ----------
Change in net assets............................................................ 10,800,622 8,208,424
NET ASSETS:
Beginning of period........................................................... -- --
---------- ----------
End of period................................................................. $ 10,800,622 $ 8,208,424
========== ==========
SHARE TRANSACTIONS:
Issued........................................................................ 1,128,552 985,152
Reinvested.................................................................... 107 1,012
Redeemed...................................................................... (16,968) (131,480)
---------- ----------
Change in shares................................................................ 1,111,691 854,684
========== ==========
</TABLE>
- ---------
(a) Period from commencement of operations.
See notes to financial statements.
-36-
<PAGE> 39
QUALIVEST FUNDS
MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ------------ -------------------------- ------------
<C> <S> <C>
COMMERCIAL PAPER (79.4%):
Automotive (4.4%):
$ 4,000,000 Ford Motor Credit Co.,
5.40%, 10/16/96......... $ 3,954,400
4,000,000 Ford Motor Credit Co.,
5.50%, 11/6/96.......... 3,940,722
4,000,000 Ford Motor Credit Co.,
5.47%, 11/12/96......... 3,937,399
4,000,000 Toyota Motor Credit Corp.,
5.36%, 9/13/96.......... 3,974,391
4,000,000 Toyota Motor Credit Corp.,
5.38%, 9/24/96.......... 3,967,720
------------
19,774,632
------------
Banking (5.1%):
4,000,000 J.P. Morgan & Company,
Inc.,
4.95%, 9/3/96........... 3,981,850
4,000,000 Republic New York Corp.,
4.99%, 8/8/96........... 3,996,119
4,000,000 Toronto-Dominion Holdings,
5.22%, 9/17/96.......... 3,972,740
5,000,000 Toronto-Dominion Holdings,
5.37%, 10/23/96......... 4,938,096
6,000,000 Toronto-Dominion Holdings,
5.43%, 10/28/96......... 5,920,360
------------
22,809,165
------------
Beverages (2.0%):
5,000,000 Anheuser-Busch Corp.,
5.44%, 11/20/96......... 4,918,600
4,000,000 PepsiCo, Inc.,
5.25%, 8/7/96........... 3,996,500
------------
8,915,100
------------
Consumer Goods (5.9%):
5,000,000 Kimberly Clark Corp.,
5.34%, 9/30/96.......... 4,955,500
4,000,000 Procter & Gamble Co.,
5.44%, 10/2/96.......... 3,962,524
5,000,000 Unilever Capital Corp.,
5.37%, 11/4/96.......... 4,929,146
5,000,000 Unilever Capital Corp.,
5.41%, 11/5/96.......... 4,927,867
4,000,000 Unilever Capital Corp.,
5.26%, 11/26/96......... 3,931,620
4,000,000 Unilever Capital Corp.,
5.21%, 12/6/96.......... 3,926,481
------------
26,633,138
------------
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ---------- ----------- ------------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Electric Utility (3.8%):
$ 4,000,000 Pacificorp,
5.28%, 8/20/96.......... $ 3,988,853
4,000,000 Pacificorp,
5.27%, 8/22/96.......... 3,987,703
5,000,000 Portland General Electric
Co.,
5.36%, 9/18/96.......... 4,964,267
4,000,000 Portland General Electric
Co.,
5.41%, 10/25/96......... 3,948,906
------------
16,889,729
------------
Electrical & Electronic (2.4%):
3,000,000 Hewlett Packard,
5.14%, 8/1/96........... 3,000,000
4,000,000 Hewlett Packard,
5.12%, 9/12/96.......... 3,976,107
4,000,000 Hewlett Packard,
5.41%, 10/15/96......... 3,954,916
------------
10,931,023
------------
Financial Services (17.6%):
4,000,000 Cargill Financial Services
Corp.,
5.18%, 9/25/96.......... 3,968,344
4,000,000 Cargill Financial Services
Corp.,
5.25%, 11/15/96......... 3,938,167
4,000,000 Cargill Financial Services
Corp.,
5.48%, 12/10/96......... 3,920,236
4,000,000 Cargill Financial Services
Corp.,
5.44%, 12/27/96......... 3,910,542
4,000,000 Cargill Financial Services
Corp.,
5.24%, 2/3/97........... 3,887,987
6,000,000 CIT Group Holdings, Inc.,
5.47%, 11/21/96......... 5,897,893
18,000,000 General Electric Capital
Corp.,
5.33%*, 8/5/96**........ 18,000,000
1,500,000 National Rural Utilities
Corp.,
5.40%, 8/26/96.......... 1,494,375
4,000,000 National Rural Utilities
Corp.,
5.37%, 9/24/96.......... 3,967,780
4,000,000 National Rural Utilities
Corp.,
5.43%, 10/30/96......... 3,945,700
</TABLE>
Continued
-37-
<PAGE> 40
QUALIVEST FUNDS
MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ---------- -------------------------- -------------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Financial Services, Continued:
$ 5,000,000 National Rural Utilities
Corp.,
5.43%, 11/8/96.......... $ 4,925,338
13,000,000 Transamerica Financial
Corp.,
5.45%*, 8/6/96**........ 13,000,000
4,000,000 Transamerica Financial
Corp.,
5.47%, 11/18/96......... 3,933,752
4,000,000 Transamerica Financial
Corp.,
5.36%, 12/4/96.......... 3,925,556
------------
78,715,670
------------
Food Products (1.2%):
5,300,000 Heinz Co.,
5.33%, 8/29/96.......... 5,278,029
------------
Insurance (13.7%):
4,000,000 John Hancock Capital
Corp.,
5.30%, 1/9/97........... 3,905,189
5,000,000 Marsh & McLennan
Companies, Inc., 4.95%,
8/14/96................. 4,991,063
4,000,000 Marsh & McLennan
Companies, Inc., 5.01%,
11/26/96................ 3,934,870
4,000,000 Marsh & McLennan
Companies, Inc., 5.52%,
12/9/96................. 3,920,267
4,000,000 Marsh & McLennan
Companies, Inc., 5.48%,
12/17/96................ 3,915,973
5,000,000 Metropolitan Life Funding,
Inc.,
5.35%, 9/20/96.......... 4,962,847
6,000,000 Prudential Funding,
5.28%, 10/22/96......... 5,927,840
5,000,000 SAFECO Credit Co.,
5.27%, 8/5/96........... 4,997,072
4,000,000 SAFECO Credit Co.,
5.39%, 10/3/96.......... 3,962,270
4,000,000 SAFECO Credit Co.,
5.41%, 10/29/96......... 3,946,501
5,000,000 SAFECO Credit Co.,
5.42%, 10/31/96......... 4,931,497
4,000,000 USAA Capital Corp.,
5.29%, 8/15/96.......... 3,991,771
4,000,000 USAA Capital Corp.,
4.96%, 9/5/96........... 3,980,711
4,000,000 USAA Capital Corp.,
5.36%, 10/2/96.......... 3,963,076
------------
61,330,947
------------
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ------------- -------------------------- ------------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Leasing (4.5%):
$ 4,000,000 International Lease
Financial Corp., 5.30%,
8/2/96.................. $ 3,999,411
4,000,000 International Lease
Financial Corp., 5.28%,
8/12/96................. 3,993,547
4,000,000 International Lease
Financial Corp., 5.29%,
8/19/96................. 3,989,420
4,000,000 International Lease
Financial Corp., 5.27%,
9/16/96................. 3,973,065
4,000,000 International Lease
Financial Corp., 5.37%,
9/19/96................. 3,970,763
------------
19,926,206
------------
Office Equipment & Services (0.9%):
4,000,000 Pitney Bowes,
5.29%, 9/11/96.......... 3,975,901
------------
Pharmaceuticals (0.9%):
4,000,000 Schering Corp.,
5.25%, 8/13/96.......... 3,993,000
------------
Printing & Publishing (1.8%):
4,000,000 McGraw Hill, Inc.,
5.28%, 10/10/96......... 3,958,933
4,000,000 McGraw Hill, Inc.,
5.42%, 10/15/96......... 3,954,833
------------
7,913,766
------------
Security Brokers & Dealers (2.9%):
5,000,000 Merrill Lynch & Co., Inc.,
5.42%, 10/8/96.......... 4,948,811
4,000,000 Merrill Lynch & Co., Inc.,
5.29%, 10/24/96......... 3,950,627
4,000,000 Merrill Lynch & Co., Inc.,
5.28%, 11/13/96......... 3,938,986
------------
12,838,424
------------
Telecommunications (6.2%):
4,000,000 Ameritech Capital Funding
Corp., 5.27%, 8/26/96... 3,985,361
4,000,000 Ameritech Capital Funding
Corp., 5.16%, 9/26/96... 3,967,893
4,000,000 AT&T Corp.,
5.18%, 5/29/96.......... 4,000,000
4,000,000 AT&T Corp.,
5.18%, 8/28/96.......... 3,984,460
4,000,000 AT&T Corp.,
5.25%, 8/30/96.......... 3,983,083
</TABLE>
Continued
-38-
<PAGE> 41
QUALIVEST FUNDS
MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ------------- -------------------------- ------------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Telecommunications, Continued:
$ 8,000,000 AT&T Corp.,
5.15%, 9/23/96.......... $ 7,939,345
------------
27,860,142
------------
Transportation & Shipping (6.1%):
11,000,000 Paccar Leasing,
5.55%*, 8/19/96**....... 11,000,000
4,000,000 United Parcel Service,
4.80%, 8/21/96.......... 3,989,333
4,000,000 United Parcel Service,
4.90%, 9/3/96........... 3,982,033
4,000,000 United Parcel Service,
5.34%, 10/1/96.......... 3,963,807
4,000,000 United Parcel Service,
5.22%, 10/17/96......... 3,955,340
------------
26,890,513
------------
Total Commercial Paper 354,675,385
------------
FUNDING AGREEMENTS (2.9%):
Insurance
3,000,000 Commonwealth Life
Insurance Funding
Agreement,
5.68%*, 8/1/96**........ 3,000,000
10,000,000 Sun Life Insurance Co. of
America, 5.61%*,
8/6/96**................ 10,000,000
------------
Total Funding Agreements 13,000,000
------------
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ------------ -------------------------- ------------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES (5.3%):
$ 6,000,000 Federal Farm Credit Bank,
5.10%, 9/10/96.......... $ 5,966,000
5,000,000 Federal Home Loan Bank,
4.25%, 9/9/96........... 4,993,535
4,000,000 Federal National Mortgage
Assoc., 5.47%,
10/11/96................ 3,957,400
5,000,000 Federal National Mortgage
Assoc., 5.35%,
10/21/96................ 4,939,144
4,000,000 Federal National Mortgage
Assoc., 5.54%,
10/22/96................ 3,950,709
------------
Total U.S. Government Agencies 23,806,788
------------
Total Investments, at amortized cost 391,482,173
------------
REPURCHASE AGREEMENTS (12.7%):
56,643,969 Merrill Lynch,
5.59%, 8/1/96,
(Collateralized by U.S.
Treasury Strips,
5.90%-6.31%,
11/15/97-5/15/99, market
value $64,824,259)...... 56,643,969
------------
Total Repurchase Agreements 56,643,969
------------
Total (Cost--$448,126,142)(a) $448,126,142
============
</TABLE>
- ---------
Percentages are based on net assets of $446,644,515.
(a) Cost for federal income tax and financial reporting purposes are the same.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon bank prime rates or an index of
market interest rates. The rate reflected on the Schedule of Portfolio
Investments is the rate in effect at July 31, 1996.
** Put and demand features exist allowing the Fund to require the repurchase of
the investment within variable time periods of less than one year.
See notes to financial statements.
-39-
<PAGE> 42
QUALIVEST FUNDS
U.S. TREASURY MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1996
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ---------- ---------------------------- ------------
<C> <S> <C>
U.S. TREASURY BILLS (66.0%):
$3,000,000 8/1/96...................... $ 3,000,000
4,000,000 8/8/96...................... 3,996,088
5,000,000 8/22/96..................... 4,985,738
5,000,000 8/29/96..................... 4,980,318
3,000,000 9/5/96...................... 2,985,402
6,000,000 9/12/96..................... 5,965,023
8,000,000 9/19/96..................... 7,945,487
5,000,000 9/26/96..................... 4,961,111
3,000,000 10/3/96..................... 2,973,278
8,000,000 10/10/96.................... 7,920,706
5,000,000 10/17/96.................... 4,945,694
5,000,000 10/24/96.................... 4,940,512
4,000,000 11/7/96..................... 3,944,467
6,000,000 11/21/96.................... 5,903,073
6,000,000 12/12/96.................... 5,883,015
6,000,000 12/19/96.................... 5,877,383
------------
Total U.S. Treasury Bills 81,207,295
------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ---------- ---------------------------- ------------
<C> <S> <C>
U.S. TREASURY NOTES (33.4%):
$6,000,000 4.38%, 8/15/96.............. $ 5,998,151
5,000,000 6.25%, 8/31/96.............. 5,001,890
5,000,000 7.25%, 8/31/96.............. 5,008,057
4,000,000 7.00%, 9/30/96.............. 4,011,843
2,000,000 8.00%, 10/15/96............. 2,010,063
5,000,000 6.88%, 10/31/96............. 5,017,596
6,000,000 4.38%, 11/15/96............. 5,982,036
5,000,000 7.25%, 11/30/96............. 5,026,956
3,000,000 7.50%, 1/31/97.............. 3,027,089
------------
Total U.S. Treasury Notes 41,083,681
------------
INVESTMENT COMPANIES (0.6%):
774,532 Dreyfus Treasury Prime Cash
Management, Class A....... 774,532
------------
Total Investment Companies 774,532
------------
Total (Cost--$123,065,508)(a) $123,065,508
===========
</TABLE>
- ---------
Percentages indicated are based on net assets of $123,304,386.
(a) Cost for federal income tax and financial reporting purposes are the same.
See notes to financial statements.
-40-
<PAGE> 43
QUALIVEST FUNDS
TAX-FREE MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1996
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ---------- ----------------------------------------------------------------------------------------- -----------
<C> <S> <C>
MUNICIPAL BONDS (87.4%):
Alaska (4.4%):
$1,500,000 Alaska Housing Finance Corp., Series C, 3.65%*, 6/1/26**................................. $ 1,500,000
------------
Florida (4.2%):
1,400,000 Florida Housing Finance Agency, Series EE, 3.75%*, 9/1/08**.............................. 1,400,000
------------
Illinois (6.8%):
1,000,000 Illinois Development Finance Authority, PCR, 3.60%*, 11/1/28, LOC: Canadian Imperial
Bank................................................................................... 1,000,000
1,300,000 O'Hare International Airport, 3.60%*, 1/1/15**, LOC; Societe Gerenale.................... 1,300,000
------------
2,300,000
------------
Indiana (2.9%):
1,000,000 Indiana Health Facility Finance Authority, 3.55%*, 11/1/20**, LOC: NBD Bank.............. 1,000,000
------------
Maryland (4.4%):
1,500,000 Montgomery County Housing Opportunity, Issue I, 3.85%*, 11/1/20**........................ 1,500,000
------------
Massachusetts (4.4%):
1,500,000 Massachusetts Bay General Transportation Authority System--1984 A, 3.05%*, 9/1/14**...... 1,500,000
------------
Michigan (3.0%):
1,000,000 City of Detroit School District, 4.50%, 5/1/97........................................... 1,003,984
------------
Missouri (7.9%):
1,500,000 Columbia Missouri, 3.65%*, 6/1/08**, LOC; Toronto Dominion Bank.......................... 1,500,000
1,200,000 Health & Education Facilities Authority, Washington University, 3.60%*, 9/1/30**......... 1,200,000
------------
2,700,000
------------
Nebraska (2.9%):
1,000,000 Nebraska Educational Facility Authority, 3.75%*, 12/1/00**, FGIC......................... 1,000,000
------------
Nevada (2.9%):
1,000,000 Clark County Nevada Airport Improvement, Series A, 3.55%*, 7/1/12**, MBIA................ 1,000,000
------------
North Carolina (3.0%):
1,000,000 North Carolina Eastern Municipal Power Agency, 7.50%, 1/1/15**........................... 1,037,028
------------
Oklahoma (3.8%):
1,300,000 Garfield County, Industrial Authority, PCR, Oklahoma Gas & Electric Company, Project A,
3.60%*, 1/1/25**....................................................................... 1,300,000
------------
Oregon (21.1%):
1,400,000 Franciscan Health Systems, 3.60%*, 12/1/24**, LOC: Toronto Dominion Bank................. 1,400,000
750,000 Jackson Co., Series #5, 4.50%, 6/1/97, FSA............................................... 754,220
1,000,000 Marion County Solid Waste & Electric Revenue, 4.25%, 10/1/96, AMBAC...................... 1,000,563
295,000 Oregon State, PCR, 4.70%, 11/1/96........................................................ 295,828
1,500,000 Oregon State, Series 73, 3.50%*, 12/1/17**, LOC; Morgan Guaranty Trust................... 1,500,000
200,000 Oregon State, 10.90%, 12/1/96............................................................ 204,738
515,000 Oregon State, 12.50%, 9/1/96............................................................. 529,162
1,500,000 State of Oregon Health, Housing, Educational, 3.60%*, 12/1/15**, LOC; Rabobank
Nederland.............................................................................. 1,500,000
------------
7,184,511
------------
</TABLE>
Continued
-41-
<PAGE> 44
QUALIVEST FUNDS
TAX-FREE MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Tennessee (2.9%):
$1,000,000 Tennessee State School Building Authority, 3.55%*, 3/1/98**.............................. $ 1,000,000
------------
Texas (4.5%):
1,000,000 Texas State, 7.10%, 8/1/97............................................................... 1,031,080
500,000 Texas State University Utility System Revenue, 9.00%, 8/1/96............................. 500,000
------------
1,531,080
------------
Virginia (4.4%):
1,500,000 Fairfax County Industrial Development, 3.65%*, 10/1/16**................................. 1,500,000
------------
Washington (3.9%):
1,300,000 Seattle Water System Revenue, 3.60%*, 9/1/25**, LOC; Bayerische Landesbank............... 1,300,000
------------
Total Municipal Bonds 29,756,603
------------
TAX FREE COMMERCIAL PAPER (7.3%):
South Carolina (4.4%):
1,500,000 York County, PCR, 3.35%, 8/28/96**....................................................... 1,500,000
------------
Washington (2.9%):
1,000,000 Seattle Municipal Light & Power, 3.70%, 2/4/97........................................... 1,000,000
------------
Total Tax Free Commercial Paper 2,500,000
------------
ANTICIPATION NOTES (5.9%):
California (3.0%):
1,000,000 County of Solano, Tax & Revenue, 4.50%, 11/1/96.......................................... 1,001,574
------------
Texas (2.9%):
1,000,000 Texas State Tax & Revenue, Series A, 4.75%, 8/30/96...................................... 1,000,534
------------
Total Anticipation Notes 2,002,108
------------
</TABLE>
Continued
-42-
<PAGE> 45
QUALIVEST FUNDS
TAX-FREE MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ---------- ----------------------------------------------------------------------------------------- -----------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
INVESTMENT COMPANIES (1.9%):
$ 642,557 Aim Tax Free Cash Reserve, Money Market.................................................. $ 642,557
------------
Total Investment Companies 642,557
------------
Total (Cost--$34,901,268)(a) $34,901,268
============
</TABLE>
- ---------
Percentages indicated are based on net assets of $34,038,144.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon bank prime rates or an index of
market interest rates. The rate reflected on the Schedule of Portfolio
Investments is the rate in effect at July 31, 1996.
** Put and demand features exist allowing the Fund to require the repurchase of
the investment within variable time period of less than one year.
<TABLE>
<S> <C>
AMBAC AMBAC Indemnity Corporation
FGIC Insured by Financial Guaranty Insurance Corp.
FSA Insured by Financial Security Assurance
LOC Letter of Credit
MBIA Insured by Municipal Bond Insurance Association
PCR Pollution Control Revenue
</TABLE>
See notes to financial statements.
-43-
<PAGE> 46
QUALIVEST FUNDS
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
CORPORATE BONDS (24.7%):
Aerospace (0.6%):
$1,000,000 Lockheed Corp., 5.88%,
3/15/98................... $ 990,000
------------
Automotive (1.7%):
1,000,000 Ford Motor Credit, 5.75%,
1/25/01................... 950,000
1,000,000 General Motors Acceptance
Corp., 7.25%, 5/15/03..... 996,250
750,000 General Motors Acceptance
Corp., 8.63%, 6/15/99..... 784,688
------------
2,730,938
------------
Banking (1.9%):
1,000,000 Bank America Corp., 7.13%,
5/1/06.................... 972,500
1,000,000 Norwest, 6.75%, 5/12/00..... 995,000
1,000,000 Westpac Banking, 9.13%,
8/15/01................... 1,085,000
------------
3,052,500
------------
Banking--Foreign (0.6%):
1,000,000 Bayerishe Landesbank-NY,
6.20%, 2/9/06............. 930,000
------------
Financial--Commercial (3.4%):
2,428,363 Chevy Chase Auto Receivables
Trust, 6.60%, 12/15/02.... 2,434,336
1,000,000 General Electric Capital,
5.47%, 1/19/99............ 975,000
2,013,000 Standard Credit Card, 7.88%,
7/23/00................... 2,071,518
------------
5,480,854
------------
Financial Services (2.4%):
1,000,000 Associates Corp. N.A.,
6.00%, 3/15/00............ 972,500
1,000,000 Chrysler Financial Corp.,
6.18%, 12/15/00........... 971,250
1,000,000 Household International,
7.25%, 5/15/06............ 990,000
1,000,000 U.S. West Capital Funding,
6.46%, 12/2/02............ 960,000
------------
3,893,750
------------
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------------------------- ------------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Foreign Government (1.3%):
$1,000,000 Republic of Ireland, 7.88%,
12/1/01................... $ 1,040,000
943,000 Victoria Public Authority,
8.45%, 10/1/01............ 1,004,295
------------
2,044,295
------------
Insurance (1.9%):
1,000,000 SAFECO Credit Corp., 7.88%,
4/1/05.................... 1,017,500
1,000,000 St. Paul Cos., 9.38%,
6/15/97................... 1,030,410
943,000 Travelers, 7.75%, 6/15/99... 966,575
------------
3,014,485
------------
Manufacturing--Consumer Goods (0.6%):
1,000,000 VF Corp., 7.60%, 4/1/4...... 996,250
------------
Natural Gas Transmission & Distribution
(1.3%):
1,000,000 Enron, 7.63%, 9/10/04....... 1,017,500
1,000,000 Pacific Gas Transmission,
6.64%, 7/5/00............. 986,250
------------
2,003,750
------------
Oil & Gas Exploration & Production Services (2.6%):
1,000,000 Baker Hughes, Inc., 7.63%,
2/15/99................... 1,015,000
1,000,000 Occidental Petroleum, 5.84%,
11/9/98................... 981,250
1,000,000 Shell Oil Co., 6.63%,
7/1/99.................... 998,750
1,000,000 Union Oil of California,
8.75%, 8/15/01............ 1,071,250
------------
4,066,250
------------
Pharmaceuticals (0.6%):
1,000,000 Johnson & Johnson, 8.00%,
9/1/98.................... 1,001,250
------------
Railroads (0.6%):
1,000,000 Union Pacific Co., 6.13%,
1/15/04................... 926,250
------------
Retail Stores (1.9%):
1,000,000 Price/Costco, Inc., 7.13%,
6/15/05................... 972,500
1,000,000 Sears, 6.69%, 4/30/01....... 985,000
1,000,000 Wal-Mart Stores, 6.75%,
5/15/02................... 990,000
------------
2,947,500
------------
</TABLE>
Continued
-44-
<PAGE> 47
QUALIVEST FUNDS
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Utilities--Electric (2.6%):
$1,057,000 Consolidated Edison, 6.38%,
4/1/03.................... $ 1,013,399
1,000,000 National Rural Utilities,
8.50%, 2/15/98............ 1,027,500
1,000,000 PacifiCorp, 6.75%, 4/1/05... 961,250
1,057,000 Public Service Electric &
Gas, 7.63%, 2/1/00........ 1,078,140
------------
4,080,289
------------
Utilities--Telephone (0.7%):
1,000,000 Nippon Telephone, 9.50%,
7/27/98................... 1,056,250
------------
Total Corporate Bonds 39,214,611
------------
U.S. GOVERNMENT AGENCIES (10.6%):
Federal Farm Credit Bank:
943,000 11.90%, 10/20/97............ 1,006,700
Federal Home Loan Mortgage Corp.:
1,000,000 7.13%, 7/21/99.............. 1,014,450
1,000,000 7.12%, 3/27/06.............. 974,820
3,281,904 7.00%, 6/1/10, Pool
#E20184................... 3,237,303
Federal National Mortgage Assoc.:
500,000 8.80%, 7/25/97.............. 513,165
2,800,000 8.40%, 10/25/04............. 2,879,464
1,000,000 8.50%, 2/1/05............... 1,039,890
2,000,000 6.06%, 2/3/06............... 1,818,100
1,708,987 7.00%, 3/1/09, Pool
#269841................... 1,687,351
688,147 7.00%, 6/1/10, Pool
#303357................... 678,589
Private Export Funding Corp.:
1,000,000 5.75%, 4/30/98, Pool
#303357................... 991,250
Student Loan Marketing Assoc.:
943,000 7.72%, 1/25/99.............. 967,074
------------
Total U.S. Government Agencies 16,808,156
------------
U.S. TREASURY NOTES (57.9%):
7,660,000 5.75%, 10/31/97............. 7,637,326
5,600,000 7.38%, 11/15/97............. 5,690,552
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
U.S. TREASURY NOTES, CONTINUED:
$8,000,000 6.13%, 5/15/98.............. $ 7,991,600
6,116,000 5.13%, 11/30/98............. 5,964,446
5,747,000 6.38%, 1/15/99.............. 5,756,425
7,216,000 7.13%, 9/30/99.............. 7,354,475
5,309,000 7.75%, 12/31/99............. 5,517,113
8,500,000 6.88%, 3/31/00.............. 8,604,125
8,300,000 6.13%, 7/31/00.............. 8,183,219
2,950,000 5.75%, 10/31/00............. 2,864,448
3,700,000 8.00%, 5/15/01.............. 3,916,191
6,215,000 7.50%, 11/15/01............. 6,459,311
5,772,000 6.38%, 8/15/02.............. 5,698,580
5,000,000 5.88%, 2/15/04.............. 4,752,800
700,000 7.25%, 5/15/04.............. 722,092
3,500,000 7.50%, 2/15/05.............. 3,663,625
1,200,000 6.50%, 8/15/05.............. 1,177,536
------------
Total U.S. Treasury Notes 91,953,864
------------
Total Investments, at value 147,976,631
------------
REPURCHASE AGREEMENTS (3.5%):
5,515,944.. Merrill Lynch, 5.59%,
8/1/96, (Collateralized by
U.S. Treasury Strips,
6.31%, 5/15/99, market
value $5,640,506)......... 5,515,944
------------
Total Repurchase Agreements 5,515,944
------------
Total (Cost--$154,606,465)(a) $153,492,575
===========
</TABLE>
- ---------
Percentages are based on net assets of $158,869,868
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting in excess of federal income tax reporting of $4,334.
Cost for federal income tax purposes differs from value by net unrealized
depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $ 1,032,762
Unrealized depreciation... (2,150,986)
----------
Net unrealized
depreciation............ $(1,118,224)
==========
</TABLE>
See notes to financial statements.
-45-
<PAGE> 48
QUALIVEST FUNDS
DIVERSIFIED BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
CORPORATE BONDS (12.4%):
Automotive (0.5%):
$1,000,000 Ford Motor Credit, 5.75%,
1/25/01................... $ 950,000
------------
Banking (0.6%):
1,000,000 Westpac Banking, 9.13%,
8/15/01................... 1,085,000
------------
Beverages (1.0%):
1,000,000 Anheuser-Busch, 7.00%,
12/1/25................... 917,500
1,000,000 PepsiCo, Inc., 6.80%,
5/15/00................... 997,500
------------
1,915,000
------------
Financial Services (2.6%):
1,000,000 Associates Corp. N.A.,
6.75%, 7/15/97............ 1,004,810
1,000,000 Commercial Credit Co.,
6.38%, 9/15/02............ 963,750
1,000,000 General Electric Capital,
5.47%, 1/19/99............ 975,000
1,000,000 Government National Mortgage
Assoc., 7.00%, 9/15/02.... 990,000
1,000,000 Norwest Financial, 6.25%,
12/15/07.................. 911,250
------------
4,844,810
------------
Forest Products (0.5%):
1,000,000 Weyerhauser Co., 7.25%,
7/1/13.................... 968,750
------------
Health Care Products (0.6%):
1,000,000 Johnson & Johnson, 8.25%,
11/9/04................... 1,057,500
------------
Insurance (0.6%):
1,000,000 Safeco Credit Corp., 7.88%,
4/1/05.................... 1,017,500
------------
Manufacturing--Consumer Goods (0.5%):
1,000,000 VF Corp., 7.60%, 4/1/4...... 996,250
------------
Railroads (0.5%):
989,767 Conrail, Inc., 6.76%,
5/25/15................... 962,548
------------
Retail Stores (1.1%):
1,000,000 Price/Costco, Inc., 7.13%,
6/15/05................... 972,500
1,000,000 Wal-Mart Stores, 6.75%,
5/15/02................... 990,000
------------
1,962,500
------------
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------------------------- ------------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Telecommunications (1.2%):
$1,250,000 AirTouch Communications,
7.50%, 7/15/06............ $ 1,250,000
1,000,000 U.S. West Communications,
7.50%, 6/15/23............ 935,000
------------
2,185,000
------------
Utility--Electric (1.6%):
1,000,000 Consolidate Edison, 6.50%,
2/1/01.................... 980,000
1,000,000 Pacific Gas Transmission,
7.10%, 6/1/05............. 971,250
1,000,000 PacifiCorp., 6.75%,
4/1/05.................... 961,250
------------
2,912,500
------------
Utility--Oil & Gas (1.1%):
1,000,000 Enron Corp., 7.13%,
5/15/07................... 978,750
1,000,000 Occidental Petroleum, 6.39%,
11/9/00................... 972,500
------------
1,951,250
------------
Total Corporate Bonds 22,808,608
------------
MORTGAGE PASS THROUGH (18.6%):
Federal Home Loan Mortgage Corp.:
3,048,146 Pool #190255, 6.50%,
2/1/09.................... 2,956,580
2,100,491 Pool #D25558, 7.50%,
10/1/22................... 2,077,742
3,020,106 Pool #C00209, 7.50%,
2/1/23.................... 2,986,734
4,691,570 Pool #G002388, 8.50%,
6/1/24.................... 4,797,881
------------
12,818,937
------------
Federal National Mortgage Association:
3,578,000 Pool #303408, 6.50%,
6/1/10.................... 3,462,288
526,122 Pool #250630, 7.50%,
5/16/11................... 527,595
173,187 Pool #303057, 7.50%,
5/16/11................... 173,664
290,336 Pool #303617, 7.50%,
5/16/11................... 291,957
502,601 Pool #321105, 7.50%,
5/16/11................... 503,988
190,119 Pool #328949, 7.50%,
5/16/11................... 190,645
400,715 Pool #331801, 7.50%,
5/16/11................... 401,837
108,831 Pool #333734, 7.50%,
5/16/11................... 109,136
410,958 Pool #345518, 7.50%,
5/16/11................... 412,112
360,238 Pool #346728, 7.50%,
5/16/11................... 354,503
------------
6,427,725
------------
</TABLE>
Continued
-46-
<PAGE> 49
QUALIVEST FUNDS
DIVERSIFIED BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
MORTGAGE PASS THROUGH, CONTINUED:
Government National Mortgage Assoc.:
$ 533,056 Pool #332377, 7.00%,
10/15/07.................. $ 527,747
357,278 Pool #337178, 7.00%,
10/15/07.................. 353,939
194,712 Pool #360174, 7.00%,
5/15/08................... 192,880
699,765 Pool #350688, 7.00%,
7/15/08................... 692,858
879,705 Pool #386559, 7.00%,
6/15/09................... 870,090
4,916,131 Pool #303790, 8.50%,
3/15/22................... 5,032,201
3,765,425 Pool #353131, 7.00%,
7/15/23................... 3,616,465
1,987,834 Pool #337540, 7.00%,
8/15/23................... 1,900,867
1,865,158 Pool #354790, 6.50%,
4/15/24................... 1,731,668
------------
14,918,715
------------
Total Mortgage Pass Through 34,165,377
------------
U.S. GOVERNMENT AGENCIES (8.0%):
Federal Farm Credit Banks:
1,000,000 7.06%, 5/24/10.............. 987,320
------------
Federal National Mortgage Association:
1,000,000 7.05%, 11/12/02............. 1,009,670
2,000,000 6.44%, 6/21/05.............. 1,912,620
2,000,000 6.54%, 10/3/05.............. 1,923,960
1,000,000 6.50%, 1/13/11.............. 925,470
2,000,000 7.25%, 3/21/11.............. 1,956,720
2,900,218 8.00%, 3/1/23............... 2,916,459
2,550,415 7.50%, 4/1/26............... 2,509,838
473,806 7.50%, 5/1/26............... 466,258
------------
13,620,995
------------
Total U.S. Government Agencies 14,608,315
------------
U.S. TREASURY NOTES (46.1%):
4,500,000 6.75%, 5/31/97.............. 4,532,715
6,000,000 5.63%, 1/31/98.............. 5,959,620
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
U.S. TREASURY NOTES, CONTINUED:
$9,500,000 5.13%, 11/30/98............. $ 9,264,590
8,500,000 6.50%, 4/30/99.............. 8,528,390
8,350,000 7.13%, 9/30/99.............. 8,510,237
9,000,000 6.75%, 4/30/00.............. 9,072,450
6,000,000 6.13%, 7/31/00.............. 5,915,580
7,000,000 7.50%, 11/15/01............. 7,275,170
3,100,000 7.50%, 5/15/02.............. 3,231,563
8,300,000 6.38%, 8/15/02.............. 8,194,425
5,000,000 6.25%, 2/15/03.............. 4,891,900
5,000,000 5.88%, 2/15/04.............. 4,752,800
4,250,000 7.50%, 2/15/05.............. 4,448,687
------------
Total U.S. Treasury Notes 84,578,127
------------
U.S. TREASURY BONDS (12.0%):
8,450,000 7.25%, 5/15/16.............. 8,603,959
9,000,000 7.25%, 8/15/22.............. 9,174,780
4,800,000 6.25%, 8/15/23.............. 4,325,040
------------
Total U.S. Treasury Bonds 22,103,779
------------
Total Investments, at value 178,264,206
------------
REPURCHASE AGREEMENTS (1.4%):
2,531,965 Merrill Lynch, 5.59%, Open
Repurchase Agreement
(Collateralized by U.S.
Treasury Strips, 6.39%,
11/15/99, market value
$2,531,388)............... 2,531,965
------------
Total Repurchase Agreements 2,531,965
------------
Total (Cost--$184,615,110)(a) $180,796,171
------------
</TABLE>
- ---------
Percentages are based on net assets of $183,577,583.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $ 475,495
Unrealized depreciation... (4,294,434)
-----------
Net unrealized
depreciation............ $(3,818,939)
==========
</TABLE>
See notes to financial statements.
-47-
<PAGE> 50
THE QUALIVEST FUNDS
SMALL COMPANIES VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1996
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS (93.2%):
Apparel (0.4%):
121,900 Sirena Apparel Group,
Inc.(b).................. $ 289,512
125,700 Tarrant Apparel Group(b)... 1,005,600
------------
1,295,112
------------
Automotive Parts (2.0%):
53,000 Bonded Motors, Inc.(b)..... 417,375
63,800 Edelbrock Corp.(b)......... 972,950
132,600 Excel Industries, Inc. .... 2,038,725
74,140 Supreme Industries,
Inc.(b).................. 491,178
106,600 Walbro Corp. .............. 2,103,684
------------
6,023,912
------------
Banking (2.4%):
157,300 City National Corp. ....... 2,438,150
156,000 First Rep Bancorp,
Inc.(b).................. 1,989,000
94,600 Onbank, Inc. .............. 3,098,150
------------
7,525,300
------------
Beverages (0.5%):
79,600 Nor Wester Brewing,
Inc.(b).................. 298,500
90,600 Pepsi-Cola Puerto Rico
Bottling Co. ............ 566,250
34,800 Suiza Foods Corp.(b)....... 565,500
------------
1,430,250
------------
Building Materials (0.9%):
45,800 Centex Construction
Products................. 624,025
68,600 Dayton Superior Corp.(b)... 883,225
65,800 Simpson Manufacturing
Co.(b)................... 1,348,900
------------
2,856,150
------------
Chemicals-- Specialty (0.8%):
22,300 AT Plastics, Inc. ......... 213,244
43,500 Cambrex Corp. ............. 1,337,625
93,700 Chemi-Trol Chemical Co. ... 890,150
------------
2,441,019
------------
Commercial Services (0.2%):
51,000 Coinmach(b)................ 694,875
------------
Computers & Peripherals (5.0%):
800,800 Applied Magnetics
Corp.(b)................. 9,309,300
270,100 Concurrent Computer
Corp.(b)................. 303,863
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Computers & Peripherals, Continued:
268,900 Gandalf Technologies,
Inc.(b).................. $ 1,512,562
62,200 National Computer Systems,
Inc. .................... 1,259,550
54,700 Proxima Corp.(b)........... 601,700
75,100 Sequent Computer Systems,
Inc.(b).................. 835,488
420,200 Zycad Corp.(b)............. 1,654,537
------------
15,477,000
------------
Construction (0.5%):
75,100 Continental Homes Holding
Corp. ................... 1,436,287
------------
Consumer Goods (0.4%):
94,800 A.T. Cross Co. ............ 1,267,950
------------
Consumer Services (0.8%):
92,500 Matthews International
Corp., Class A........... 2,566,875
------------
Containers--Metal, Glass, Paper, Plastic (1.3%):
100,200 Brockway Standard(b)....... 1,728,450
85,800 Libbey, Inc. .............. 2,262,975
------------
3,991,425
------------
Drug Stores (0.7%):
558,600 Drug Emporium, Inc.(b)..... 2,234,400
------------
Educational Services (0.9%):
107,900 Computer Learning
Center(b)................ 2,670,525
------------
Electrical Equipment (2.6%):
128,400 AFC Cable Systems,
Inc.(b).................. 2,054,400
49,800 Exide Electronics Group,
Inc.(b).................. 485,550
270,900 Magnetek(b)................ 2,540,030
66,200 Scotsman Industries,
Inc. .................... 1,315,725
90,900 Thomas Industries, Inc. ... 1,579,387
------------
7,975,092
------------
Electronic Computing (1.1%):
69,100 Continental Circuits
Corp.(b)................. 712,594
209,600 Electrostar, Inc.(b)....... 2,200,800
67,100 Praegitzer Industries,
Inc.(b).................. 612,288
------------
3,525,682
------------
</TABLE>
Continued
-48-
<PAGE> 51
QUALIVEST FUNDS
SMALL COMPANIES VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Electronic Computing Equipment (0.1%):
62,900 Benchmarq Microelectronics,
Inc.(b).................. $ 456,025
------------
Electronic & Electrical--General (2.6%):
144,300 FEI Co.(b)................. 1,262,625
103,500 IEC Electronics Corp.(b)... 698,625
284,700 Moog, Inc., Class A(b)..... 5,978,700
------------
7,939,950
------------
Energy (0.7%):
121,100 Trigen Energy Corp. ....... 2,240,350
------------
Engineering, Industrial Construction (0.6%):
134,400 Guy F. Atkinson Co.,
California(b)............ 1,780,800
------------
Environmental Control (4.1%):
1,344,100 Air & Water Technologies,
Class A(b)............... 8,736,650
661,600 Catalytica, Inc.(b)........ 2,563,700
323,900 Envirosource, Inc.(b)...... 1,255,112
------------
12,555,462
------------
Financial Services (1.1%):
90,200 Dignity Partners,
Inc.(b).................. 315,700
58,600 Medallion Financial
Corp.(b)................. 626,288
160,400 Rockford Industries,
Inc.(b).................. 2,345,850
------------
3,287,838
------------
Food Distributors & Wholesalers (1.3%):
99,200 Quality Food Centers,
Inc.(b).................. 2,864,400
77,300 Rykoff Sexton, Inc......... 1,227,907
------------
4,092,307
------------
Food Processing & Packaging (0.1%):
77,000 Stokely USA, Inc.(b)....... 202,125
------------
Foreign (0.1%):
1,652 Computer 2000 AG........... 377,215
------------
Forest Products--Lumber, Paper (0.4%):
179,200 Merfin Hygienic Products,
Inc.(b).................. 730,419
38,900 Specialty Paperboard,
Inc.(b).................. 544,600
------------
1,275,019
------------
Furniture (0.2%):
40,500 Stanley Furniture Co.,
Inc.(b).................. 521,437
------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Health Care (1.2%):
120,600 Theratx, Inc.(b)........... $ 2,065,275
125,100 Unison Healthcare
Corp.(b)................. 1,563,750
------------
3,629,025
------------
Heavy Machinery--Industrial, Farm, Construction (0.9%):
157,000 Park-Ohio Industries,
Inc.(b).................. 2,629,750
------------
Insurance--Broker (0.4%):
41,600 Acordia, Inc. ............. 1,279,200
------------
Insurance--Life (2.9%):
80,000 Amvestors Financial
Corp. ................... 1,120,000
324,696 Pioneer Financial Services,
Inc. .................... 5,073,375
107,100 Security-Connecticut
Corp. ................... 2,824,763
------------
9,018,138
------------
Insurance--Property, Casualty, Health & Other (9.8%):
83,800 Acmat Corp.(b)............. 995,125
213,500 American Eagle Group,
Inc...................... 907,375
88,200 Chandler Insurance
Company, Ltd.(b)......... 529,200
100,600 Delphi Financial
Group(b)................. 2,728,775
144,900 Enhanced Financial Services
Group, Inc. ............. 4,218,171
21,600 Farm Family Holdings,
Inc.(b).................. 378,000
288,310 Fremont General Corp. ..... 7,207,750
136,100 John Alden Financial
Corp. ................... 2,739,013
122,000 Lasalle Re Holdings,
Ltd. .................... 2,746,450
52,512 Orion Capital Corp. ....... 2,573,088
161,350 Penn Treaty American
Corp.(b)................. 2,944,637
92,000 Philadelphia Consolidated
Holding Corp.(b)......... 1,587,000
67,400 Westbridge Capital
Corp.(b)................. 556,050
------------
30,110,634
------------
Leisure--Recreation, Gaming (0.9%):
133,000 Cannondale Corp.(b)........ 2,626,750
------------
Machine Tools (0.8%):
166,200 Bridgeport Machines,
Inc.(b).................. 2,451,450
------------
</TABLE>
Continued
-49-
<PAGE> 52
QUALIVEST FUNDS
SMALL COMPANIES VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Medical Services (0.5%):
134,800 Diagnostic Health Services,
Inc.(b).................. $ 791,950
60,300 Integra Lifesciences
Corp.(b)................. 301,500
75,700 Oncormed, Inc.(b).......... 321,725
------------
1,415,175
------------
Medical Supplies (2.0%):
148,114 Cardiotech International,
Inc.(b).................. 249,942
294,100 Cholestech Corp.(b)........ 1,360,212
321,300 Polymedica Industries(b)... 1,606,500
146,100 Space Labs Medical,
Inc.(b).................. 2,976,788
------------
6,193,442
------------
Metals--Fabrication (0.7%):
15,600 Barnes Group, Inc.......... 748,800
249,500 Foster L.B., Co.(b)........ 966,813
39,300 Greenbrier Cos., Inc....... 466,687
------------
2,182,300
------------
Miscellaneous Manufacturing (1.1%):
53,600 Bacou USA, Inc.(b)......... 904,500
64,350 Tredegar Industries,
Inc. .................... 2,067,244
37,100 Whittaker Corp.(b)......... 533,312
------------
3,505,056
------------
Office Equipment & Supplies (0.3%):
94,200..... AM International, Inc.(b) 164,850
81,000..... Kentek Information
Systems(b) 668,250
------------
833,100
------------
Oil & Gas Production, Exploration & Services (2.3%):
696,700 Abacan Resource Corp.(b)... 2,960,975
34,500 Cairn Energy USA,
Inc.(b).................. 340,687
67,339 Clayton Williams Energy,
Inc.(b).................. 530,295
253,460 Forest Oil Corp.(b)........ 3,326,662
------------
7,158,619
------------
Pharmaceuticals (0.2%):
44,800 Roberts Pharmaceutical
Corp.(b)................. 700,000
6,644 Systemed, Inc.............. 37,830
------------
737,830
------------
Pollution Control Services & Equipment (0.7%):
175,900 Heidemij N.V............... 1,802,975
55,600 Rollins Environmental
Services, Inc.(b)........ 159,850
60,100 Total Containment,
Inc.(b).................. 165,275
------------
2,128,100
------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Precision Instruments & Related (0.6%):
36,300 Tylan General, Inc.(b)..... $ 417,450
129,300 Unit Instruments,
Inc.(b).................. 1,389,975
------------
1,807,425
------------
Printing (0.4%):
50,000 Devon Group, Inc.(b)....... 1,375,000
------------
Real Estate Investment Trusts (5.2%):
68,200 Chelsea GCA Realty,
Inc. .................... 1,969,275
91,500 Highwood Properties,
Inc. .................... 2,527,687
105,900 Omega Healthcare Investors,
Inc. .................... 2,991,675
60,500 RFS Hotel Investors,
Inc. .................... 968,000
90,100 Shurgard Storage Centers,
Inc. .................... 2,128,613
114,533 Starwood Lodging Trust..... 3,894,133
55,100 Walden Residential
Properties, Inc. ........ 1,163,988
32,500 Winston Hotels, Inc. ...... 369,687
------------
16,013,058
------------
Retail--Specialty Stores (1.7%):
123,600 Finlay Enterprises,
Inc.(b).................. 1,668,600
139,500 Genovese Drug Stores,
Inc. .................... 1,377,563
35,700 Old America Stores,
Inc.(b).................. 249,900
133,400 Payless Cashways,
Inc.(b).................. 516,925
157,100 Sound Advice, Inc.(b)...... 235,650
235,300 Strouds, Inc.(b)........... 1,176,500
------------
5,225,138
------------
Savings & Loan Companies (3.2%):
157,400 Astoria Financial Corp. ... 4,210,450
14,400 Pacific Crest Capital,
Inc.(b).................. 122,400
107,200 TR Financial Corp. ........ 2,948,000
83,900 Webster Financial Corp. ... 2,433,100
------------
9,713,950
------------
</TABLE>
Continued
-50-
<PAGE> 53
QUALIVEST FUNDS
SMALL COMPANIES VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Semiconductors (0.8%):
238,100 Chips & Technologies,
Inc.(b).................. $ 2,440,525
9,700 Speedfam International,
Inc.(b).................. 120,037
------------
2,560,562
------------
Services (Non-Financial) (0.4%):
88,600 Kinder Care Learning
Centers,
Inc.(b).................. 1,345,612
------------
Shipping (0.4%):
84,000 Pacific Basin Bulk
Shipping................. 1,323,000
------------
Shoes, Leather Goods, Clothing Accessories (0.5%):
90,200 Deckers Outdoor Corp.(b)... 665,225
74,200 K-Swiss, Inc., Class-S..... 732,725
------------
1,397,950
------------
Software & Computer Services (11.7%):
325,400 American Software,
Inc.(b).................. 1,301,600
111,805 Banctec, Inc.(b)........... 2,347,905
34,200 BDM International,
Inc.(b).................. 1,786,950
323,500 Borg-Warner Security
Corp.(b)................. 2,830,625
253,900 Borland International(b)... 1,904,250
77,600 Cimatron, Ltd.(b).......... 455,900
170,800 Cognos, Inc.(b)............ 3,416,000
168,100 Consilium, Inc.(b)......... 1,008,600
273,200 Dataflex Corp.(b).......... 1,366,000
76,800 Datalogic(b)............... 336,000
233,800 Fourth Shift Corp.(b)...... 1,636,600
133,000 Government Technology
Services(b).............. 714,875
166,600 GSE Systems, Inc.(b)....... 1,832,600
323,300 Learmonth & Burchett
Management Systems(b).... 1,050,725
214,000 Micrografx, Inc.(b)........ 2,487,750
224,500 Netrix Corp.(b)............ 1,599,563
200,200 Nimbus CD International,
Inc.(b).................. 2,527,525
120,000 Pomeroy Computer
Resources(b)............. 1,950,000
217,600 Triad Systems Corp.(b)..... 1,115,200
215,200 Triple(b).................. 1,533,300
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Software & Computer Services, Continued:
157,500 Tro Learning, Inc.(b)...... $ 2,244,375
76,700 Truevision, Inc.(b)........ 546,488
------------
35,992,831
------------
Steel (2.0%):
52,300 Commercial Metals Co. ..... 1,588,612
105,200 Kentucky Electric Steel,
Inc.(b).................. 723,250
123,700 Northwest Pipe Co.(b)...... 2,211,138
383,400 Republic Engineered Steels,
Inc.(b).................. 1,672,172
------------
6,195,172
------------
Technology (1.2%):
75,800 Bell & Howell Holdings
Co.(b)................... 2,340,325
117,000 MacNeal-Schwendler
Corp. ................... 760,500
172,700 Plasma-Therm, Inc.(b)...... 636,831
------------
3,737,656
------------
Telecommunications (1.5%):
164,400 Comdial Corp.(b)........... 1,233,000
6,000 Inter-Tel, Inc.(b)......... 104,250
275,900 Olicom..................... 3,379,775
------------
4,717,025
------------
Textile Manufacturing (0.4%):
30,500 Conso Products Co.(b)...... 465,125
53,800 Hampshire Group, Ltd.(b)... 618,700
27,700 Oneita Industries,
Inc.(b).................. 83,100
------------
1,166,925
------------
Transportation--Air (0.3%):
143,200 World Airways, Inc.(b)..... 859,200
------------
Transportation--Marine (0.3%):
101,200 Anangel American
Shipholdings............. 986,700
36,100 B & H Ocean Carriers,
Ltd.(b).................. 90,250
------------
1,076,950
------------
Transportation Leasing & Trucking (1.8%):
50,000 Simon Transportation
Services(b).............. 653,125
248,700 Team Rental Group,
Inc.(b).................. 4,911,825
------------
5,564,950
------------
</TABLE>
Continued
-51-
<PAGE> 54
QUALIVEST FUNDS
SMALL COMPANIES VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Utilities--Electric (4.2%):
916,020 Tuscon Electric Power
Co.(b)................... $ 13,053,285
------------
Total Common Stocks 287,164,640
------------
CONVERTIBLE BONDS (2.0%):
Drug Stores (0.2%):
732,000 Drug Emporium, Inc., 7.75%,
10/1/14.................. 578,280
------------
Electrical Equipment (0.2%):
500,000 Magnetek, Inc., 8.00%,
9/15/01.................. 467,500
------------
Environmental Control (0.3%):
1,057,000 Air & Water Technology,
8.00%, 5/15/15........... 919,590
------------
Financial Services (0.2%):
710,000 Pioneer Financial Services,
6.50%, 4/1/03............ 704,675
------------
Health Care (0.5%):
1,695,000 Theratx, Inc., 8.00%,
2/1/02................... 1,673,813
------------
Real Estate Investment Trust (0.1%):
381,000 Maxxim Medical, 6.75%,
3/1/03................... 405,765
------------
Software & Computer Services (0.5%):
1,620,000 Recognition International,
7.25%, 4/15/11........... 1,478,250
------------
Total Convertible Bond 6,227,873
------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
CORPORATE BONDS (0.4%):
Industrial Goods & Services
1,095,000 Complete Management, Inc.,
8.00%, 8/15/03........... $ 1,152,487
------------
Total Corporate Bonds 1,152,487
------------
WARRANTS (0.4%):
Retail--Specialty Stores
505 Sound Advice Warrants,
expire 6/14/99........... 0
------------
Transportation--Marine
307,400 Nordic American Tanker
Shipping Warrants, expire
9/30/97.................. 1,191,175
------------
Total Warrants 1,191,175
------------
Total Investments, at value 295,736,175
------------
REPURCHASE AGREEMENTS (4.0%):
12,249,283 Merrill Lynch, 5.59%,
8/1/96 (Collateralized by
U.S. Treasury Strips,
6.31%-6.42%,
5/15/99-8/15/99, market
value $11,520,664)....... 12,249,283
------------
Total Repurchase Agreements 12,249,283
------------
Total (Cost--$271,302,019)(a) $307,985,458
============
</TABLE>
- ---------
Percentages indicated are based on net assets of $308,039,779.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting in excess of federal income reporting of approximately
$80,322. Cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $ 61,688,357
Unrealized depreciation... (25,085,240)
-----------
Net unrealized
appreciation............ $ 36,603,117
===========
</TABLE>
(b) Non-income producing security.
See notes to financial statements.
-52-
<PAGE> 55
QUALIVEST FUNDS
LARGE COMPANIES VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1996
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
COMMON STOCKS (91.5%):
Automotive Parts (0.7%):
37,300 A.O. Smith Corp. ........... $ 829,925
------------
Automobiles (4.2%):
120,170 Ford Motor Co. ............. 3,905,525
22,400 General Motors.............. 1,092,000
------------
4,997,525
------------
Banks (6.2%):
23,000 Citicorp.................... 1,883,125
43,000 Corestates Financial
Corp. .................... 1,687,750
10,400 First Union Corp. .......... 660,400
20,700 Mellon Bank Corp. .......... 1,091,925
10,000 NationsBank Corp. .......... 858,750
31,000 Standard Federal
Bancorporation............ 1,209,000
------------
7,390,950
------------
Beverages (0.6%):
95,300 Cott Corp. ................. 762,400
------------
Brokerage Firms & Security Dealers (0.6%):
28,912 Bear Stearns Cos., Inc. .... 650,520
------------
Building Materials (1.5%):
51,700 Congoleum Corp., Class
A(b)...................... 588,088
23,500 Schuller Corp.(b)........... 205,625
34,200 USG Corp.(b)................ 914,850
------------
1,708,563
------------
Chemicals (6.8%):
25,700 Air Products & Chemicals,
Inc. ..................... 1,371,738
47,400 Dexter Corp. ............... 1,392,375
56,400 Ecolab Inc. ................ 1,741,350
12,000 E.I. du Pont de Nemours
Co. ...................... 969,000
24,600 Ferro Corp. ................ 661,125
19,800 MallincKrodt Group, Inc. ... 740,025
19,100 Praxair, Inc. .............. 732,963
22,400 Wellman, Inc. .............. 436,800
------------
8,045,376
------------
Computers & Peripherals (3.2%):
24,300 Digital Equipment
Corp.(b).................. 859,613
27,039 IBM Corp. .................. 2,916,832
------------
3,776,445
------------
Consumer Goods (0.8%):
38,100 American Greetings Corp. ... 923,925
------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED
Diversified--Conglomerates, Holding Companies (1.8%):
108,392 Hanson, PLC, ADR............ $ 1,381,998
8,400 Tenneco, Inc. .............. 413,700
14,819 U.S. Industries, Inc.(b).... 333,427
------------
2,129,125
------------
Electronic & Electrical--General (2.9%):
16,600 General Signal Corp. ....... 649,475
29,800 Thomas & Betts Corp. ....... 1,087,700
53,600 Wyle Electronics............ 1,715,200
------------
3,452,375
------------
Engineering, Industrial Construction (0.3%):
21,600 E G & G, Inc. .............. 391,500
------------
Entertainment (0.3%):
32,100 Aztar Corp.(b).............. 316,988
------------
Financial Services (5.3%):
43,000 Federal National Mortgage
Assoc..................... 1,365,250
18,900 First USA, Inc. ............ 923,738
18,500 Household International,
Inc. ..................... 1,378,250
4,753 TransAmerica Corp. ......... 328,551
53,850 Travelers, Inc. ............ 2,275,162
------------
6,270,951
------------
Food Distributors (0.9%):
23,200 Kroger Co.(b)............... 875,800
5,900 Sysco Corp. ................ 171,100
------------
1,046,900
------------
Food Processing & Packaging (2.4%):
25,300 CPC International, Inc. .... 1,691,937
10,600 Dean Foods Co. ............. 258,375
28,500 Universal Food Corp. ....... 851,437
------------
2,801,749
------------
Forest Product (4.9%):
109,900 Boise Cascade Corp. ........ 3,571,750
7,500 Chesapeake Corp. ........... 176,250
11,600 Mead Corp. ................. 635,100
35,850 Rayonier, Inc. ............. 1,375,743
------------
5,758,843
------------
</TABLE>
Continued
-53-
<PAGE> 56
QUALIVEST FUNDS
LARGE COMPANIES VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED
Furniture (0.7%):
77,000 Furniture Brands
International, Inc.(b).... $ 875,875
------------
Insurance (1.3%):
21,600 Bankers Life Holding
Corp...................... 496,800
26,900 Mid-Ocean Ltd............... 1,082,725
------------
1,579,525
------------
Machine Tools (0.2%):
10,400 Cincinnati Milacron, Inc.... 205,400
------------
Manufacturing--Capital Goods (4.8%):
59,000 Albany International Corp.,
Class A................... 1,091,500
75,800 Greenbrier Cos., Inc........ 900,125
111,200 Kennametal, Inc............. 3,447,200
5,310 Sequa Corp., Class A(b)..... 217,710
------------
5,656,535
------------
Medical Services (6.5%):
30,900 Columbia/HCA Healthcare
Corp...................... 1,583,625
57,000 Foundation Health
Corp.(b).................. 1,396,500
56,000 Health Systems
International, Inc.(b).... 1,106,000
62,900 Ornda Healthcorp(b)......... 1,446,700
169,700 Sun Healthcare Group,
Inc.(b)................... 2,163,675
------------
7,696,500
------------
Metals (0.9%):
29,894 Cleveland Cliffs............ 1,098,605
------------
Mobile Homes & Manufactured Housing (1.8%):
69,800 Fleetwood Enterprises,
Inc....................... 2,120,175
------------
Office Equipment & Supplies (0.4%):
26,600 Moore & Associates, Ltd..... 462,175
------------
Oil & Gas Exploration, Production, Services (2.4%):
20,000 Ashland, Inc................ 732,500
21,700 Petroleum Geo Services(b)... 591,325
33,000 Sun Company, Inc............ 853,875
38,600 Union Texas Petroleum
Holdings, Inc............. 723,750
------------
2,901,450
------------
Oil--Integrated Companies (2.7%):
8,900 Atlantic Richfield Co....... 1,032,400
54,800 Occidental Petroleum
Corp...................... 1,226,150
30,011 UNOCAL Corp................. 979,109
------------
3,237,659
------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED
Oilfield Equipment & Services (1.7%):
110,200 McDermott International,
Inc....................... $ 1,997,375
------------
Pharmaceuticals (3.4%):
25,400 Astra....................... 1,073,150
7,300 Bristol-Myers Squibb Co..... 632,363
17,000 Pharmacia & Upjohn, Inc..... 701,250
30,000 Schering-Plough............. 1,653,750
------------
4,060,513
------------
Photography (0.6%):
9,600 Eastman Kodak Co............ 716,400
------------
Precision Instruments & Related (0.5%):
12,000 Perkin-Elmer................ 627,000
------------
Publishing, Except Newspaper (0.3%):
8,800 Reader's Digest Assoc.,
Class B................... 333,300
------------
Railroad & Railroad Holding Companies (1.0%):
8,900 CSX Corp.................... 429,425
11,100 Union Pacific Corp.......... 760,350
------------
1,189,775
------------
Real Estate Investment Trusts (1.0%):
35,300 Meditrust Shares Beneficial
Interest.................. 1,200,200
------------
Restaurants (1.1%):
74,000 Wendy's International....... 1,258,000
------------
Retail (2.9%):
35,000 Dillard Department Stores,
Inc....................... 1,098,125
13,400 May Department Stores....... 601,325
56,400 Rite Aid.................... 1,677,900
------------
3,377,350
------------
Retail--Specialty Stores (3.1%):
42,000 Intimate Brands Inc......... 861,000
44,386 The Limited, Inc............ 854,430
100,000 Waban Inc.(b)............... 1,900,000
------------
3,615,430
------------
</TABLE>
Continued
-54-
<PAGE> 57
QUALIVEST FUNDS
LARGE COMPANIES VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED
Semiconductors (1.5%):
36,300 Advanced Micro Devices,
Inc.(b)................... $ 440,137
70,500 National Semiconductor
Corp.(b).................. 995,813
8,968 Texas Instruments, Inc...... 387,866
------------
1,823,816
------------
Software & Computer Services (0.4%):
43,300 Intergraph Corp.(b)......... 454,650
------------
Tax Return Preparation (0.2%):
10,000 H&R Block................... 261,250
------------
Telecommunications (0.7%):
44,000 Comsat Corp.(b)............. 847,000
------------
Textile Manufacturing (0.1%):
3,600 Springs Industries, Inc..... 164,250
------------
Tobacco & Tobacco Products (1.8%):
20,000 Philip Morris Cos., Inc..... 2,092,500
------------
Tools & Hardware Manufacturing (0.7%):
21,200 Black & Decker Corp......... 779,100
------------
Utilities--Electric (1.9%):
19,900 Minnesota Power & Light..... 549,737
32,300 Peco Energy Co.............. 759,050
40,200 Houston Industries, Inc..... 909,525
------------
2,218,312
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
COMMON STOCKS, CONTINUED
Utilities--Natural Gas (0.9%):
34,700 Panenergy Corp.............. $ 1,101,725
------------
Utilities--Telecommunications (1.8%):
21,000 AT&T Corp.(b)............... 1,094,625
21,200 SBC Communications, Inc..... 1,036,150
------------
2,130,775
------------
Utilities--Telephones (0.8%):
38,200 Tele Danmark A/S ADR........ 892,925
------------
Total Common Stocks 108,229,605
------------
CONVERTIBLE PREFERRED STOCKS (0.2%):
Tobacco & Tobacco Products (0.2%):
31,000 RJR Nabisco................. 189,875
------------
Total Convertible Preferred Stocks 189,875
------------
Total Investments, at value 108,419,480
------------
REPURCHASE AGREEMENTS (8.2%):
$9,703,655 Merrill Lynch, 5.59%*,
8/1/96 (Collateralized by
U.S. Treasury Strips,
6.39%-6.42%,
8/15/99-11/15/99, market
value $9,838,432)......... 9,703,655
------------
Total Repurchase Agreements 9,703,655
------------
Total (Cost--$106,654,233)(a) $118,123,135
===========
</TABLE>
- ---------
Percentages indicated are based on net assets of $118,222,174.
<TABLE>
<C> <S>
(a) Represents cost for financial reporting purposes and differs from cost basis for federal income tax purposes
by the amount of losses recognized for financial reporting in excess of federal income reporting of
approximately $121,060. Cost for federal income tax purposes differs from value by net unrealized appreciation
of securities as follows:
Unrealized appreciation....... $17,593,947
Unrealized depreciation....... (6,246,105)
-----------
Net unrealized appreciation... $11,347,842
==========
(b) Non-income producing securities.
* Variable rate securities having liquidity sources through bank letters of credit or other credit and/or
liquidity agreements. The interest rate, which will change periodically, is based upon bank prime rates or an
index of market interest rates. The rate reflected on the Schedule of Portfolio Investments is the rate in
effect at July 31, 1996.
ADR American Depository Receipt
PLC Private Limited Company
</TABLE>
See notes to financial statements.
-55-
<PAGE> 58
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1996
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
COMMON STOCKS (97.4%):
Advertising (0.1%):
3,700 Interpublic Group Cos.,
Inc. ..................... $ 163,262
------------
Aerospace (0.7%):
17,900 Boeing Co. ................. 1,584,150
------------
Aerospace/Defense (1.0%):
6,100 Lockheed Martin Corp. ...... 505,537
11,300 McDonnell Douglas Corp. .... 505,675
100 Northrop Corp. ............. 6,875
3,700 Rockwell International
Corp. .................... 194,250
9,800 Textron, Inc. .............. 784,000
3,400 TRW, Inc. .................. 307,275
------------
2,303,612
------------
Agriculture & Livestock (0.1%):
4,800 Pioneer Hi-Bred
International, Inc. ...... 258,000
------------
Aircraft & Aircraft Parts (Aviation) (0.7%):
7,900 AlliedSignal Inc. .......... 464,125
4,100 General Dynamics Corp. ..... 262,400
6,900 United Technologies
Corp. .................... 777,112
------------
1,503,637
------------
Air Freight (0.0%):
400 Federal Express(b).......... 31,100
100 Navistar International...... 1,000
------------
32,100
------------
Airlines (0.4%):
2,900 AMR Corp.(b)................ 228,737
7,000 Delta Air Lines............. 489,125
2,400 Southwest Airlines.......... 59,400
8,400 US Air Group, Inc.(b)....... 153,300
------------
930,562
------------
Aluminum (0.6%):
100 Alcan Aluminum Ltd. ........ 2,975
19,200 Aluminum Co. of America..... 1,113,600
4,200 Reynolds Metals Co. ........ 213,150
------------
1,329,725
------------
Apparel (0.1%):
5,000 Liz Claiborne, Inc. ........ 163,125
------------
Automotive Parts (0.3%):
6,500 Dana Corp. ................. 181,187
5,100 Eaton Corp. ................ 284,325
7,200 Genuine Parts Co. .......... 305,100
------------
770,612
------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Automobiles (1.7%):
44,400 Chrysler Corp. ............. $ 1,259,850
1,600 Echlin, Inc. ............... 53,400
35,000 Ford Motor Co. ............. 1,137,500
25,500 General Motors.............. 1,243,125
2,600 PACCAR, Inc. ............... 118,300
------------
3,812,175
------------
Banks (1.2%):
7,200 Bank of Boston Corp. ....... 381,600
9,700 BankAmerica Corp. .......... 773,575
18,200 First Union Corp. .......... 1,155,700
6,500 KeyCorp..................... 251,062
------------
2,561,937
------------
Banks--Money Centers (4.8%):
10,000 Bank of New York Co.,
Inc. ..................... 515,000
100 Bankers Trust New York...... 7,188
100 Barnett Banks, Inc. ........ 6,138
100 Boatmens Bancshares,
Inc. ..................... 4,000
34,100 Chase Manhattan Corp. ...... 2,369,950
29,700 Citicorp.................... 2,431,687
14,800 Corestates Financial
Corp. .................... 580,900
21,100 First Chicago NDB Corp. .... 812,350
3,900 Golden West Financial Corp.,
Delaware.................. 216,450
100 Great Western Financial
Corp. .................... 2,375
12,700 J.P. Morgan & Co., Inc. .... 1,092,200
25,500 MBNA Corp. ................. 710,812
100 National City Corp. ........ 3,462
10,400 NationsBank Corp. .......... 893,100
24,500 Norwest Corp. .............. 869,750
100 PNC Financial Corp. ........ 2,913
100 Republic New York Corp. .... 6,338
100 Suntrust Banks, Inc. ....... 3,675
------------
10,528,288
------------
</TABLE>
Continued
-56-
<PAGE> 59
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Banks--Outside Money Center (1.6%):
30,100 Banc One Corp. ............. $ 1,042,212
6,500 Fifth Third Bancorp. ....... 336,375
3,100 First Bank Systems Inc. .... 189,875
4,500 Fleet Financial Group,
Inc. ..................... 182,250
14,800 Mellon Bank Corp. .......... 780,700
7,200 U.S. Bancorp................ 246,600
11,300 Wachovia Corp. ............. 500,025
1,100 Wells Fargo & Co. .......... 256,163
------------
3,534,200
------------
Beverages (3.2%):
4,800 Anheuser-Busch Co., Inc. ... 358,800
1,100 Brown Forman Corp., Class
B......................... 40,425
104,900 Coca-Cola Co. .............. 4,917,187
2,500 Coors Adolph Co., Class B... 47,188
54,600 PepsiCo, Inc. .............. 1,726,725
100 Seagram Co., Ltd. .......... 3,325
------------
7,093,650
------------
Brokerage Firms & Security Dealers (0.4%):
11,600 Merrill Lynch & Co.,
Inc. ..................... 700,350
3,600 Salomon, Inc. .............. 153,900
------------
854,250
------------
Building Materials (0.1%):
100 Masco Corp. ................ 2,787
3,400 Owens-Corning(b)............ 128,775
------------
131,562
------------
Chemicals--General (2.4%):
7,500 Air Products & Chemicals,
Inc. ..................... 400,312
6,300 Dow Chemical Co. ........... 468,562
16,800 E.I. du Pont de Nemours
Co. ...................... 1,356,600
100 FMC Corp.(b)................ 6,450
100 Hercules, Inc. ............. 5,013
39,800 Monsanto Co. ............... 1,243,750
11,100 Morton International
Inc. ..................... 399,600
4,500 Nalco Chemical Co. ......... 135,000
16,900 Praxair Inc. ............... 648,538
4,500 Rohm & Haas Co. ............ 267,750
4,700 Sigma Aldrich Corp. ........ 246,750
700 W R Grace & Co. ............ 44,625
------------
5,222,950
------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Chemicals--Specialty (0.7%):
3,500 Avery Dennison Corp. ....... $ 181,124
5,300 Eastman Chemical............ 276,925
3,000 Ecolab Inc. ................ 92,625
9,600 Engelhard Corp. ............ 196,800
4,300 Great Lakes Chemical........ 247,788
100 Mallinckrodt Group, Inc. ... 3,738
9,000 PPG Industries, Inc. ....... 443,250
4,300 Union Carbide Corp. ........ 180,600
------------
1,622,850
------------
Coal (0.0%):
600 Nacco Industries, Inc.,
Class A................... 30,825
------------
Computers (0.1%):
6,200 3 Com Corp. ................ 244,125
------------
Computers & Peripherals (4.0%):
1,300 Amdahl Corp.(b)............. 12,837
100 Apple Computer Inc. ........ 2,200
4,600 Cabletron Systems(b)........ 263,350
2,900 Ceridian Corp.(b)........... 126,150
29,500 Cisco Systems, Inc.(b)...... 1,526,625
5,100 Data General Corp.(b)....... 52,912
300 Digital Equipment
Corp.(b).................. 10,612
100 EMC Corp. .................. 1,938
86,600 Hewlett Packard Co. ........ 3,810,400
26,100 IBM Corp. .................. 2,815,538
1,500 Shared Medical Systems
Corp. .................... 82,500
100 Silicon Graphics, Inc.(b)... 2,350
100 Tandem Computers, Inc.(b)... 1,050
100 Unisys Corp.(b)............. 588
------------
8,709,050
------------
Construction (0.1%):
100 Centex Corp. ............... 2,900
4,500 Foster Wheeler Corp. ....... 194,062
1,800 Pulte Corp. ................ 45,450
------------
242,412
------------
Consumer Credit (0.0%):
100 Dean Witter Discover &
Co. ...................... 5,087
------------
</TABLE>
Continued
-57-
<PAGE> 60
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Consumer Goods (0.1%):
5,000 American Greetings Corp. ... $ 121,250
2,600 Jostens, Inc. .............. 49,725
------------
170,975
------------
Consumer Services (0.0%):
800 CUC International Inc.(b)... 27,800
------------
Container--Metal, Glass, Paper, Plastic (0.6%):
2,000 Ball Corp. ................. 49,750
7,000 Bemis, Inc. ................ 228,375
8,300 Crown Cork & Seal, Inc. .... 369,350
11,300 Newell Co. ................. 363,012
10,100 Rubbermaid, Inc. ........... 290,375
5,700 Stone Container Corp. ...... 71,250
------------
1,372,112
------------
Cosmetics & Related (0.7%):
100 Alberto Culver Co., Class
B......................... 4,312
8,600 Avon Products, Inc. ........ 378,400
13,400 Gillette Co. ............... 852,575
7,400 International Flavors &
Fragrances, Inc. ......... 316,350
------------
1,551,637
------------
Department Stores (0.6%):
24,800 J. C. Penney................ 1,233,800
2,600 Mercantile Stores, Inc. .... 127,400
------------
1,361,200
------------
Developers--Real Estate (0.3%):
29,700 Entergy Corp. .............. 757,350
100 Kaufman & Broad Home
Corp. .................... 1,187
------------
758,537
------------
Diversified--Conglomerates (0.9%):
30,100 Corning Glass Works......... 1,109,937
100 Dial Corp. ................. 2,925
100 Micron Technology Inc. ..... 1,875
9,200 Minnesota Mining &
Manufacturing Co. ........ 598,000
100 National Service Industries,
Inc. ..................... 3,813
3,800 Teledyne, Inc. ............. 136,800
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Diversified--Conglomerates, Continued:
1,800 Tenneco, Inc. .............. $ 88,650
4,400 Whitman Corp. .............. 98,450
------------
2,040,450
------------
Drug Stores (0.0%):
100 Longs Drug Stores Corp. .... 3,875
------------
Electrical Equipment (3.3%):
14,900 Emerson Electric Co. ....... 1,257,187
61,100 General Electric Co. ....... 5,033,112
100 General Instrument
Corp.(b).................. 2,513
3,400 Honeywell, Inc. ............ 180,200
2,700 Thomas & Betts Corp. ....... 98,550
28,000 Westinghouse Electric
Corp. .................... 469,000
3,400 W. W. Grainger, Inc. ....... 238,850
------------
7,279,412
------------
Electrical Utility (0.3%):
14,800 Peco Energy Co. ............ 347,800
6,800 Union Electric Co. ......... 255,850
------------
603,650
------------
Electronic Computing Equipment (0.3%):
12,000 Compaq Computer Corp.(b).... 657,000
------------
Electronic & Electrical--General (1.8%):
13,900 AMP, Inc. .................. 536,887
7,200 Cooper Industries........... 283,500
3,000 General Signal Corp. ....... 117,375
3,700 Harris Corp. ............... 212,750
33,100 Motorola, Inc. ............. 1,787,400
3,500 Raychem Corp. .............. 231,438
3,800 Raytheon Co. ............... 184,300
4,800 Scientific Atlanta, Inc. ... 64,200
100 Tektronix, Inc. ............ 3,825
12,200 Texas Instruments, Inc. .... 527,650
------------
3,949,325
------------
Engineering, Industrial Construction (0.1%):
3,200 E G & G, Inc. .............. 58,000
3,900 Fluor Corp. ................ 234,975
------------
292,975
------------
</TABLE>
Continued
-58-
<PAGE> 61
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Entertainment (1.1%):
3,500 Bally Entertainment(b)...... $ 91,438
1,700 Harrah's Entertainment,
Inc.(b)................... 37,400
2,500 Hasbro, Inc. ............... 89,687
4,800 ITT Corp.(b)................ 272,400
2,500 King World Productions,
Inc.(b)................... 89,687
32,400 The Walt Disney Co. ........ 1,802,250
------------
2,382,862
------------
Environmental Control (0.1%):
18,700 Laidlaw, Inc., Class B...... 172,975
------------
Financial Services (3.4%):
14,900 American Express Co. ....... 651,875
18,500 Automatic Data Processing,
Inc. ..................... 733,063
3,600 Beneficial Corp. ........... 194,400
100 Comerica, Inc. ............. 4,387
6,000 Dun & Bradstreet Corp. ..... 345,000
57,400 Federal National Mortgage
Assoc. ................... 1,822,450
10,900 First Data Corp. ........... 846,113
100 Green Tree Financial
Corp. .................... 3,362
6,600 Household International,
Inc. ..................... 491,700
20,400 Morgan Stanley Group
Inc. ..................... 994,500
4,700 TransAmerica Corp. ......... 324,887
23,100 Travelers, Inc. ............ 975,975
------------
7,387,712
------------
Food Distributors (0.9%):
20,200 Albertsons, Inc. ........... 828,200
2,500 Fleming Cos., Inc.(b)....... 37,812
2,700 Great Atlantic & Pacific Tea
Co., Inc. ................ 74,588
7,900 Kroger Co.(b)............... 298,225
12,000 Sysco Corp. ................ 348,000
11,700 Winn Dixie Stores, Inc. .... 409,500
------------
1,996,325
------------
Food Processing & Packaging (2.7%):
34,700 Archer Daniels Midland
Co. ...................... 615,925
21,100 Campbell Soup Co. .......... 1,432,162
11,000 Cinergy Corp. .............. 325,875
14,500 ConAgra, Inc. .............. 616,250
13,700 CPC International, Inc. .... 916,187
3,500 General Mills............... 189,875
3,700 Hershey Foods Corp. ........ 303,400
100 H.J. Heinz Co. ............. 3,313
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Food Processing & Packaging, Continued:
100 Kellogg Co. ................ $ 7,475
100 Quaker Oats Co. ............ 3,200
1,600 Ralston-Purina Group........ 100,400
32,300 Sara Lee Corp. ............. 1,033,600
7,700 Wrigley, William Jr.,
Co. ...................... 397,513
------------
5,945,175
------------
Forest Products--Lumber, Paper (1.4%):
7,100 Alco Standard Corp. ........ 310,625
100 Boise Cascade Corp. ........ 3,250
100 Champion International
Corp. .................... 4,225
6,200 Georgia Pacific Corp. ...... 463,450
100 International Paper Co. .... 3,787
100 James River Corp. .......... 2,525
19,300 Kimberly Clark Corp. ....... 1,466,800
100 Louisiana Pacific Corp. .... 2,037
100 Mead Corp. ................. 5,475
1,900 Potlatch Corp. ............. 71,250
100 Temple Inland, Inc. ........ 4,738
100 Union Camp Corp. ........... 4,800
100 Westvaco Corp. ............. 2,838
15,600 Weyerhauser Co. ............ 651,300
100 Willamette Industries
Inc. ..................... 5,875
------------
3,002,975
------------
Gold & Silver Mining (0.0%):
8,200 Echo Bay Mines, Ltd. ....... 84,050
100 Homestake Mining............ 1,637
100 Placer Dome, Inc. .......... 2,338
------------
88,025
------------
Health Care (1.3%):
10,800 Humana, Inc.(b)............. 180,900
49,200 Johnson & Johnson, Inc. .... 2,349,300
12,200 United Healthcare Corp. .... 411,750
------------
2,941,950
------------
Heavy Machinery (1.1%):
1,400 Baker Hughes, Inc. ......... 41,125
12,600 Caterpillar Tractor,
Inc. ..................... 830,025
28,100 Deere & Co. ................ 1,004,575
100 Harnischfeger Industries,
Inc. ..................... 3,100
</TABLE>
Continued
-59-
<PAGE> 62
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Heavy Machinery, Continued:
100 Ingersoll-Rand Co. ......... $ 4,262
13,300 Tyco Laboratories, Inc. .... 545,300
------------
2,428,387
------------
Hospital & Nursing Equipment (0.3%):
6,900 Becton Dickinson & Co. ..... 514,913
3,800 C.R. Bard, Inc. ............ 115,900
------------
630,813
------------
Hotels & Motels (0.5%):
3,200 Hilton Hotels Corp. ........ 326,400
14,800 Marriott International
Inc. ..................... 760,350
------------
1,086,750
------------
Household Goods (0.2%):
2,400 Armstrong World Industries,
Inc. ..................... 133,200
6,800 Maytag Corp. ............... 136,000
4,000 Tupperware Corp.(b)......... 171,000
100 Whirlpool Corp. ............ 4,925
------------
445,125
------------
Industrial Services (0.2%):
6,800 Dover Corp. ................ 291,550
5,900 Millipore Corp. ............ 201,337
------------
492,887
------------
Insurance--Broker (0.2%):
100 Alexander & Alexander
Services, Inc. ........... 1,650
3,900 Marsh & McLennan Cos.,
Inc. ..................... 353,437
------------
355,087
------------
Insurance--Fire, Marine, Casualty (0.2%):
11,900 SAFECO Corp. ............... 409,806
2,200 USF&G Corp.(b).............. 34,925
------------
444,731
------------
Insurance--Life (0.6%):
3,873 Aetna, Inc. ................ 225,134
1,200 AON Corp. .................. 58,350
4,900 Jefferson Pilot Corp. ...... 257,250
7,000 Lincoln National Corp. ..... 298,375
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Insurance--Life, Continued:
6,300 Providian Corp. ............ $ 249,638
4,800 Torchmark Corp. ............ 204,600
2,300 USLife Corp. ............... 68,425
------------
1,361,772
------------
Insurance--Multi-Line (0.7%):
10,300 American General Corp. ..... 357,925
7,600 CIGNA Corp. ................ 809,400
11,100 ITT Hartford Group, Inc. ... 586,913
100 Loews Corp. ................ 8,062
------------
1,762,300
------------
Insurance--Property, Casualty,
Health & Other (1.4%):
37,000 Allstate Corp. ............. 1,655,750
4,400 American International
Group, Inc. .............. 414,150
12,900 Chubb Corp. ................ 538,575
100 General Re Corp. ........... 14,675
5,600 St. Paul Cos., Inc. ........ 289,800
4,400 UNUM Corp.(b)............... 268,400
------------
3,181,350
------------
Leisure--Recreation, Gaming (0.1%):
6,400 Brunswick Corp. ............ 121,600
100 Caliber System, Inc. ....... 1,825
100 Outboard Marine Corp. ...... 1,562
------------
124,987
------------
Loan Companies (0.2%):
4,400 Federal Home Loan Mortgage
Corp. .................... 370,700
------------
Machine Tools (0.3%):
9,300 Case Corp. ................. 411,525
100 Cincinnati Milacron,
Inc. ..................... 1,975
6,200 Cyprus Amax Minerals Co. ... 133,300
4,500 Giddings & Lewis, Inc. ..... 52,312
------------
599,112
------------
Machinery (0.0%):
2,000 Applied Materials(b)........ 47,750
------------
</TABLE>
Continued
-60-
<PAGE> 63
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Manufacturing--Capital Goods (0.6%):
3,600 Briggs & Stratton Corp. .... $ 135,450
2,000 Crane Co. .................. 73,000
2,600 Cummins Engine, Inc. ....... 97,175
6,900 Illinois Tool Works......... 444,187
7,600 Pall Corp. ................. 183,350
4,900 Parker-Hannifin Corp. ...... 170,888
3,800 Trinova Corp. .............. 113,050
1,600 Varity Corp.(b)............. 75,200
------------
1,292,300
------------
Miscellaneous Manufacturing (0.1%):
890 Imation Corp.(b)............ 20,248
5,500 ITT Industries Inc. ........ 126,500
------------
146,748
------------
Medical Services (1.1%):
100 Baxter International,
Inc. ..................... 4,162
13,300 Beverly Enterprises,
Inc.(b)................... 126,350
11,200 Boston Scientific
Corp.(b).................. 534,800
23,800 Columbia/HCA Healthcare
Corp. .................... 1,219,750
100 Community Psychiatric
Centers, Inc.(b).......... 800
7,500 Manor Care, Inc. ........... 247,500
19,900 Tenet Healthcare Corp.(b)... 385,563
------------
2,518,925
------------
Medical Supplies (0.5%):
3,600 Bausch & Lomb, Inc. ........ 127,800
100 Biomet, Inc.(b)............. 1,537
15,300 Medtronic, Inc. ............ 724,837
100 St. Jude Medical, Inc.(b)... 3,363
4,200 U.S. Surgical Corp. ........ 143,850
------------
1,001,387
------------
Metals--Fabrication (0.4%):
2,800 Asarco, Inc. ............... 67,200
2,500 Barrick Gold Corp. ......... 69,688
100 Freeport McMoRan Copper &
Gold, Inc. ............... 2,962
3,500 Harcourt General Inc. ...... 167,562
4,900 Inco, Ltd. ................. 150,675
5,200 Phelps Dodge Corp. ......... 305,500
6,000 Santa Fe Pacific Gold
Corp. .................... 80,250
------------
843,837
------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Metal & Mineral Production (0.2%):
9,300 Newmont Mining Corp. ....... $ 459,188
------------
Mobile Homes & Manufactured Housing (0.0%):
2,400 Fleetwood Enterprises,
Inc. ..................... 72,900
------------
Newspapers (0.7%):
3,300 Dow Jones & Co., Inc. ...... 129,114
16,300 Gannett Co., Inc. .......... 1,069,687
700 Knight-Ridder, Inc. ........ 45,850
800 New York Times Co., Class
A......................... 23,300
4,500 Tribune Co. ................ 315,000
------------
1,582,951
------------
Office Equipment & Supplies (0.3%):
2,500 Moore & Associates, Ltd. ... 43,437
13,400 Pitney Bowes, Inc. ......... 649,900
300 Xerox Corp. ................ 15,112
------------
708,449
------------
Oil & Gas Exploration, Production, & Services (0.6%):
100 Amerada Hess Corp. ......... 4,862
100 Ashland Inc. ............... 3,663
8,600 Burlington Resources........ 367,650
1,400 Eastern Enterprises......... 44,975
16,800 Enron Corp. ................ 661,500
2,100 Enserch Corp. .............. 41,475
1,800 Helmerich & Payne Inc. ..... 63,000
2,400 Louisiana Land & Exploration
Co. ...................... 129,600
------------
1,316,725
------------
Oil & Gas Production (0.8%):
3,300 Kerr McGee Corp. ........... 188,100
100 Peoples Energy Corp.(b)..... 3,112
35,000 Phillips Petroleum Co. ..... 1,382,500
5,700 Rowan Cos., Inc.(b)......... 81,938
6,200 Santa Fe Energy Resources... 70,525
100 Sun Co., Inc. .............. 2,587
------------
1,728,762
------------
</TABLE>
Continued
-61-
<PAGE> 64
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Oil--Integrated Companies (6.6%):
26,700 Amoco Corp. ................ $ 1,785,563
10,700 Atlantic Richfield Co. ..... 1,241,200
37,200 Chevron Corp. .............. 2,152,950
63,100 Exxon Corp. ................ 5,189,975
100 Mobil Corp. ................ 11,037
6,800 Occidental Petroleum
Corp. .................... 152,150
1,800 Oneok, Inc. ................ 47,475
7,100 Oryx Energy Co.(b).......... 111,825
100 Pennzoil Co. ............... 4,913
15,500 Royal Dutch Petroleum
Co. ...................... 2,338,562
3,200 Texaco, Inc. ............... 272,000
26,700 USX--Marathon Group......... 547,350
24,200 Unocal Corp. ............... 789,525
------------
14,644,525
------------
Oilfield Equipment & Services (1.1%):
20,400 Dresser Industries, Inc. ... 550,800
14,800 Halliburton Co. ............ 771,450
100 McDermott International,
Inc. ..................... 1,813
9,600 Schlumberger Ltd. .......... 768,000
3,900 Western Atlas Inc.(b)....... 211,575
400 Williams Cos., Inc. ........ 18,350
------------
2,321,988
------------
Paint, Varnishes, Enamels (0.0%):
100 Sherwin Williams Co. ....... 4,525
------------
Pharmaceuticals (6.6%):
38,000 Abbott Laboratories......... 1,672,000
8,400 Allergan, Inc. ............. 342,300
5,300 ALZA Corp., Class A(b)...... 131,175
16,400 American Home Products
Corp. .................... 930,700
15,800 Amgen, Inc.(b).............. 863,075
15,900 Bristol-Myers Squibb Co. ... 1,377,337
22,500 Eli Lilly & Co. ............ 1,260,000
58,100 Merck & Co., Inc. .......... 3,732,925
9,100 Noram Energy Corp. ......... 98,963
24,300 Pfizer, Inc. ............... 1,697,962
22,700 Pharmacia & Upjohn Inc. .... 936,375
22,100 Schering-Plough............. 1,218,263
3,400 Warner-Lambert Co. ......... 185,300
------------
14,446,375
------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Photography (0.3%):
9,300 Eastman Kodak Co. .......... $ 694,013
1,300 Polaroid Corp. ............. 54,925
------------
748,938
------------
Pollution Control Services & Equipment (0.2%):
13,600 Browning-Ferris Industries,
Inc. ..................... 304,300
100 Ogden Corp. ................ 1,925
3,500 Safety Kleen................ 60,813
2,400 WMX Technologies, Inc. ..... 71,100
------------
438,138
------------
Precision Instruments & Related (0.2%):
5,200 Johnson Controls, Inc. ..... 374,400
2,900 Perkin-Elmer................ 151,525
------------
525,925
------------
Printing (0.1%):
2,000 John H. Harland Co. ........ 48,500
1,700 Meredith Corp. ............. 69,063
------------
117,563
------------
Publishing, Except Newspaper (0.8%):
5,500 Deluxe Corp. ............... 202,813
12,300 McGraw Hill, Inc. .......... 479,700
14,600 R.R. Donnelley & Sons
Co. ...................... 470,850
15,500 Time Warner Inc. ........... 540,562
------------
1,693,925
------------
Publishing Newspapers (0.1%):
7,000 Times Mirror Co., Class A... 289,625
------------
Radio & Television (0.1%):
100 Comcast Corp., Special Class
A......................... 1,413
18,100 Tele-Communications, Class
A(b)...................... 257,925
100 Viacom Inc., Class B(b)..... 3,500
------------
262,838
------------
Railroad & Railroad Holding Companies (0.8%):
3,100 Conrail Inc. ............... 203,050
8,800 Norfolk & Southern Co. ..... 711,700
10,900 Union Pacific Corp. ........ 746,650
------------
1,661,400
------------
</TABLE>
Continued
-62-
<PAGE> 65
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Restaurants (0.6%):
10,600 Darden Restaurants, Inc. ... $ 83,475
1,600 Luby's Cafeterias, Inc. .... 38,800
21,700 McDonald's Corp. ........... 1,006,337
100 Ryan's Family Steak Houses,
Inc.(b)................... 763
100 Shoney's Inc.(b)............ 913
8,500 Wendy's International....... 144,500
------------
1,274,788
------------
Retail (2.0%):
4,800 American Stores Co. ........ 178,800
18,000 Dayton Hudson Corp. ........ 544,500
4,700 Dillard Department Stores,
Inc.(b)................... 147,462
11,700 K-Mart Corp. ............... 117,000
10,700 May Department Stores....... 480,163
100 Nordstrom, Inc. ............ 4,150
11,800 Price/Costco Inc.(b)........ 241,900
5,600 Rite Aid.................... 166,600
20,400 Sears & Roebuck Co. ........ 836,400
4,000 Tandy Corp. ................ 169,000
15,200 Walgreen Co. ............... 482,600
47,300 Wal-Mart Stores, Inc. ...... 1,135,200
100 Woolworth Corp.(b).......... 1,925
------------
4,505,700
------------
Retail--Department Stores (0.0%):
3,600 Federated Department
Stores(b)................. 108,900
------------
Retail--Specialty Stores (1.2%):
7,000 Charming Shoppes, Inc.(b)... 45,062
7,500 Circuit City Stores,
Inc. ..................... 236,250
2,900 Giant Food, Inc. ........... 97,512
15,300 Home Depot, Inc. ........... 772,650
2,700 Lowe's Cos., Inc. .......... 88,088
100 Melville Corp. ............. 3,913
7,800 Pep Boys Manny, Moe &
Jack...................... 235,950
8,600 Super Value, Inc. .......... 239,725
21,400 The Gap, Inc. .............. 636,650
1,500 The Limited, Inc. .......... 28,875
5,000 TJX Cos., Inc. ............. 150,625
100 Toys R Us, Inc.(b).......... 2,638
------------
2,537,938
------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- --------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Rubber & Rubber Products (0.5%):
5,600 Cooper Tire & Rubber Co. ... $ 105,700
6,800 B.F. Goodrich, Inc.(b)...... 246,500
14,900 Goodyear Tire & Rubber
Co. ...................... 659,325
------------
1,011,525
------------
Savings & Loan Companies (0.0%):
100 H F Ahmanson & Co. ......... 2,525
------------
Semiconductors (0.9%):
100 Advanced Micro Devices,
Inc.(b)................... 1,213
26,900 Intel Corp. ................ 2,020,863
100 LSI Logic Corp.(b).......... 1,950
4,100 National Semiconductor
Corp.(b).................. 57,912
------------
2,081,938
------------
Services (Non-Financial) (0.2%):
7,200 Service Corp.
International............. 396,900
------------
Shoes, Leather Goods, Clothing Accessories (0.5%):
100 Brown Group, Inc. .......... 1,362
9,700 Nike, Inc., Class B......... 997,888
1,400 Reebok International,
Ltd. ..................... 49,000
100 Stride Rite Corp. .......... 725
------------
1,048,975
------------
Soaps & Cleaning Agents (2.7%):
3,200 Clorox Co. ................. 290,800
9,800 Colgate-Palmolive........... 769,300
38,500 Procter & Gamble Co. ....... 3,440,938
10,200 Unilever N. V. ............. 1,450,950
100 U S West Media Group(b)..... 1,725
------------
5,953,713
------------
Software & Computer Services (2.0%):
700 Autodesk, Inc. ............. 16,143
100 Bay Networks(b)............. 2,300
12,900 Computer Assoc.
International, Inc. ...... 656,287
3,600 Computer Sciences
Corp.(b).................. 244,800
100 Intergraph Corp.(b)......... 1,050
19,100 Microsoft Corp.(b).......... 2,251,413
100 Novell, Inc.(b)............. 1,069
17,500 Oracle Corp.(b)............. 684,688
11,800 Sun Microsystems, Inc.(b)... 644,575
------------
4,502,325
------------
</TABLE>
Continued
-63-
<PAGE> 66
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Steel (0.2%):
100 Armco, Inc.(b).............. $ 450
100 Bethlehem Steel Corp.(b).... 1,000
100 Inland Steel Industries..... 1,738
100 Nucor Corp. ................ 4,687
2,100 Timken Co. ................. 76,913
5,400 USX-U. S. Steel Group....... 137,025
6,100 Worthington Industries,
Inc. ..................... 115,900
------------
337,713
------------
Tax Return Preparation (0.1%):
6,900 H & R Block................. 180,263
------------
Telecommunications (1.9%):
100 Airtouch Communications
Inc.(b)................... 2,750
17,800 Alltel Corp. ............... 487,275
4,900 Andrew Corp.(b)............. 200,288
27,900 Bell Atlantic Corp. ........ 1,649,588
5,800 DSC Communications
Corp.(b).................. 174,000
14,700 Northern Telecom Ltd. ...... 690,900
6,000 Tellabs, Inc.(b)............ 358,500
26,100 Worldcom Inc.(b)............ 675,337
------------
4,238,638
------------
Textile Manufacturing (0.2%):
100 Fruit of the Loom(b)........ 2,525
2,400 Russell Corp. .............. 80,400
1,300 Springs Industries, Inc. ... 59,312
3,900 V. F. Corp. ................ 217,913
------------
360,150
------------
Tobacco & Tobacco Products (2.1%):
3,300 American Brands............. 150,150
38,400 Philip Morris Cos., Inc. ... 4,017,600
13,500 UST, Inc. .................. 448,875
------------
4,616,625
------------
Tools & Hardware Manufacturing (0.2%):
1,500 Black & Decker Corp. ....... 55,125
5,300 Snap on Tools Corp. ........ 235,188
5,700 Stanley Works............... 162,450
------------
452,763
------------
Toys & Bicycles--Manufacturing (0.4%):
31,900 Mattel, Inc. ............... 789,525
------------
Transportation Leasing & Trucking (0.4%):
6,500 Burlington Northern Santa
Fe........................ 512,688
2,500 CSX Corp. .................. 120,625
6,400 Ryder Systems, Inc. ........ 170,400
------------
803,713
------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Trucking Local & Long Distance (0.0%):
100 Consolidated Freightways,
Inc. ..................... $ 1,963
100 Yellow Corp.(b)............. 1,275
------------
3,238
------------
Utilities--Electric (1.9%):
12,000 American Electric Power
Co. ...................... 498,000
15,200 Carolina Power & Light
Co. ...................... 547,200
100 Central & South West
Corp. .................... 2,675
8,000 Dominion Resources, Inc. ... 301,000
100 DTE Energy Co. ............. 2,875
5,900 Duke Power Co. ............. 282,463
100 Edison International........ 1,550
100 FPL Group, Inc. ............ 4,537
8,000 General Public Utilities
Corp. .................... 260,000
16,500 Houston Industries, Inc. ... 373,313
9,600 Niagara Mohawk Power
Corp. .................... 69,600
100 Northern States Power
Co. ...................... 4,475
5,600 Ohio Edison................. 117,600
100 PacifiCorp.................. 2,087
20,400 P.P. & L. Resources,
Inc. ..................... 456,450
16,300 Public Service Enterprise
Group, Inc. .............. 425,838
6,000 Southern Co. ............... 135,750
15,200 Texas Utilities Co. ........ 638,400
4,200 Unicom Corp. ............... 98,700
------------
4,222,513
------------
Utilities--Electric & Gas (0.5%):
9,400 Baltimore Gas & Electric.... 242,050
9,800 Consolidated Edison......... 264,600
27,800 Pacific Gas & Electric
Co. ...................... 549,050
------------
1,055,700
------------
Utilities--Natural Gas (0.5%):
100 Coastal Corp. .............. 3,725
3,800 Columbia Gas Systems
Inc. ..................... 203,775
7,600 Consolidated Natural Gas.... 382,850
3,300 Nicor, Inc. ................ 93,638
</TABLE>
Continued
-64-
<PAGE> 67
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Utilities--Natural Gas, Continued:
100 Pacific Enterprises......... $ 2,938
2,600 Panenergy Corp. ............ 82,550
6,900 Sonat, Inc. ................ 294,112
------------
1,063,588
------------
Utilities--Telecommunications (6.0%):
68,700 AT&T Corp. ................. 3,580,989
20,400 Ameritech Corp. ............ 1,132,200
30,100 Bellsouth Corp. ............ 1,234,100
20,200 GTE Corp. .................. 833,250
27,800 MCI Telecommunications
Corp. .................... 684,575
19,500 Nynex Corp. ................ 875,062
42,300 Pacific Telesis Group....... 1,422,337
49,100 SBC Communications, Inc. ... 2,399,762
24,700 Sprint Corp. ............... 904,638
6,500 U.S. West, Inc. ............ 197,438
------------
13,264,351
------------
Total Common Stocks 214,592,788
------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
PREFERRED STOCKS (0.0%):
1,258 Aetna Services, Inc. ....... $ 78,802
------------
Total Preferred Stocks 78,802
------------
Investment Companies (1.7%):
$ 179,686 SEI Index S&P 500 Fund...... 3,676,383
------------
Total Investment Companies 3,676,383
------------
Total Investments, at value 218,347,973
------------
REPURCHASE AGREEMENTS (0.8%):
1,714,993 Merrill Lynch, 5.59%*,
8/1/96, (Collateralized by
U.S. Treasury Strips,
6.39%, 11/15/99, market
value $1,843,950)......... 1,714,993
------------
Total Repurchase Agreements 1,714,993
------------
Total (Cost--$196,818,435)(a) $220,062,966
===========
</TABLE>
- ---------
Percentages are based on net assets of $220,322,888.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting in excess of federal income reporting of approximately
$55,955. Cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.... $28,171,331
Unrealized depreciation.... (4,982,755)
-----------
Net unrealized
appreciation............. $23,188,576
==========
(b) Non-income producing security.
* Variable rate securities having liquidity sources through bank letters of credit or other credit and/or
liquidity agreements. The interest rate, which will change periodically, is based upon bank prime rates or an
index of market interest rates. The rate reflected on the Schedule of Portfolio Investments is the rate in
effect at July 31, 1996.
</TABLE>
See notes to financial statements.
-65-
<PAGE> 68
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1996
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS (99.0%):
AUSTRALIA (2.6%):
Banking (0.4%):
39,547 National Australia Bank,
Ltd. ...................... $ 358,811
64,467 Westpac Banking Corp.,
Ltd. ...................... 280,000
------------
638,811
------------
Beverages (0.2%):
13,586 Coca-Cola Amatil, Ltd. ...... 155,920
43,324 Foster's Brewing Group,
Ltd. ...................... 70,982
------------
226,902
------------
Building Materials (0.2%):
34,465 Boral, Ltd. ................. 82,837
67,092 Pioneer International,
Ltd. ...................... 183,552
------------
266,389
------------
Business & Public Services (0.0%):
5,017 Brambles Industries, Ltd. ... 69,016
------------
Chemicals (0.0%):
7,707 ICI Australia, Ltd. ......... 66,412
------------
Diversified (0.0%):
13,471 Southcorp Holdings, Ltd. .... 32,482
------------
Energy (0.5%):
48,865 Broken Hill Proprietary Co.,
Ltd. ...................... 643,128
------------
Food Processing & Packaging (0.0%):
14,789 Burns Philp & Co., Ltd. ..... 24,116
32,053 Goodman Fielder, Ltd. ....... 32,698
------------
56,814
------------
Forest Products (0.1%):
18,082 Amcor, Ltd. ................. 109,419
------------
Merchandising (0.1%):
34,453 Coles Myer, Ltd. ............ 118,221
------------
Metals--Non Ferrous (0.5%):
42,463 M.I.M. Holdings, Ltd. ....... 49,553
46,366 Newcrest Mining, Ltd. ....... 167,699
48,475 North, Ltd. ................. 129,247
24,866 WMC, Ltd.(b)................. 165,268
------------
511,767
------------
Metals--Steel (0.1%):
10,001 CRA, Ltd. ................... 141,056
------------
Multi-Industry (0.1%):
26,547 CSR, Ltd. ................... 87,194
34,457 Pacific Dunlop, Ltd. ........ 74,829
------------
162,023
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ----------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Australia, Continued:
Oil & Gas Exploration, Production & Services (0.0%):
20,928 Santos, Ltd. ................ $ 76,987
------------
Publishing & Broadcasting (0.2%):
49,183 News Corp., Ltd. ............ 247,066
25,110 News Corp., Ltd.,
Preferred.................. 103,627
------------
350,693
------------
Real Estate (0.2%):
6,149 Lend Lease Corp., Ltd. ...... 92,097
2,601 Westfield Trust--New Units... 4,482
59,092 Westfield Trust--Units....... 107,777
------------
204,356
------------
Transportation (0.0%):
21,280 TNT, Ltd.(b)................. 22,695
------------
Total Australia 3,697,171
------------
AUSTRIA (0.5%):
Banking (0.1%):
1,386 Bank Austria................. 111,273
674 Creditanstalt-Bankverein..... 42,924
------------
154,197
------------
Beverages (0.1%):
1,785 Oesterreichische
Brau-Beteiligungs.......... 108,168
------------
Building Materials (0.0%):
256 Weinerberger
Baustoffindustrie.......... 48,516
------------
Energy (0.0%):
340 OMV.......................... 31,598
------------
Engineering & Construction (0.1%):
539 VA Technologie............... 66,885
------------
Insurance--Property, Casualty, Health & Other (0.2%):
586 EA-Generali.................. 175,292
------------
Transportation--Airlines (0.0%):
141 Austrian Airlines
Oesterreichische
Luftverskehrs(b)........... 20,871
------------
Transportation--Misc. (0.0%):
772 Flughafen Wien............... 50,656
------------
Utilities (0.0%):
367 Oesterrichische
Elektrizitaetswirstchafts,
Class A.................... 27,339
------------
Total Austria 683,522
------------
</TABLE>
Continued
-66-
<PAGE> 69
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
BELGIUM (1.1%):
Banking (0.2%):
338 Generale de Banque........... $ 121,290
335 Kredietbank.................. 106,759
------------
228,049
------------
Building Materials (0.1%):
1,285 Cimenteries CBR
Cementbedrijven............ 98,358
------------
Chemicals (0.1%):
799 Gevaert...................... 51,951
262 Solvay....................... 153,965
------------
205,916
------------
Energy (0.1%):
642 PetroFina.................... 199,733
------------
Industrial Goods & Services (0.1%):
87 Bekaert...................... 68,597
------------
Insurance--Property, Casualty, Health & Other (0.1%):
867 Fortis....................... 114,458
20 Fortis, Strip VVPR(b)........ 9
334 Royale Belge................. 64,326
------------
178,793
------------
Metals--Non Ferrous (0.0%):
453 Union Miniere(b)............. 32,213
------------
Multi-Industry (0.2%):
641 Group Bruxelles Lambert...... 80,191
329 Tractebel.................... 140,265
------------
220,456
------------
Retail (0.0%):
1,220 Delhaize-Le Lion............. 64,464
------------
Utilities--Electric & Gas (0.2%):
1,337 Electrabel................... 300,632
300 Electrabel, Strip VVPR....... 277
------------
300,909
------------
Total Belgium 1,597,488
------------
BRITAIN (16.8%):
Aerospace/Defense (0.2%):
12,373 British Aerospace PLC........ 178,981
40,740 Rolls-Royce PLC.............. 138,291
------------
317,272
------------
Automotive Parts (0.3%):
17,687 BBA Group PLC................ 80,693
14,480 GKN PLC...................... 225,243
26,193 Lucas Industries PLC......... 87,892
11,389 T & N PLC.................... 23,054
------------
416,882
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Britain, Continued:
Banking (1.4%):
33,602 Abbey National PLC........... $ 299,018
33,683 Barclays PLC................. 427,449
24,178 HSBC Holdings PLC............ 400,382
42,550 HSBC Holdings PLC............ 687,060
19,555 Royal Bank of Scotland PLC... 142,806
------------
1,956,715
------------
Beverages (0.9%):
18,036 Bass PLC..................... 220,177
71,974 B.A.T Industries PLC......... 564,836
45,723 Guinness PLC................. 328,922
12,436 Scottish & Newcastle PLC..... 124,318
------------
1,238,253
------------
Building Materials (0.5%):
23,176 Blue Circle Industries PLC... 131,358
17,071 BPB Industries PLC........... 90,110
27,892 Pilkington PLC............... 79,044
26,360 Redland PLC.................. 170,748
6,560 RMC Group PLC................ 106,742
10,852 Williams Holdings PLC........ 56,269
12,531 Wolseley PLC................. 84,487
------------
718,758
------------
Business & Public Services (0.5%):
16,238 Rentokil Group PLC(b)........ 98,229
37,877 Reuters Holdings PLC......... 397,513
8,603 Thames Water PLC............. 72,337
12,921 United Utilities PLC......... 113,473
------------
681,552
------------
Chemicals (0.7%):
10,336 BOC Group PLC................ 146,457
13,327 Courtaulds PLC............... 90,891
19,118 Imperial Chemical Industries
PLC........................ 222,372
23,566 Zeneca Group PLC............. 510,422
------------
970,142
------------
</TABLE>
Continued
-67-
<PAGE> 70
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Britain, Continued:
Diversified (0.1%):
26,410 Harrisons & Crosfield PLC.... $ 50,993
30,742 LASMO PLC.................... 85,684
19,032 Lonrho PLC................... 48,453
------------
185,130
------------
Electrical & Electronic (0.4%):
5,025 Electrocomponents PLC........ 28,794
72,833 General Electric Co. PLC..... 430,951
13,573 Racal Electronic PLC......... 59,599
------------
519,344
------------
Energy (0.9%):
143,828 British Petroleum Co. PLC.... 1,304,534
------------
Financial Services (0.9%):
183,544 Lloyds TSB Group PLC......... 988,855
6,695 Mercury Asset Management
Group PLC.................. 94,657
10,148 Provident Financial PLC...... 70,395
6,463 Schroders PLC................ 127,807
------------
1,281,714
------------
Food & Household (0.9%):
30,765 Associated British Foods
PLC........................ 191,137
24,818 Cadbury Schweppes PLC........ 196,119
10,971 EMI PLC...................... 299,464
27,559 Unilever PLC................. 529,106
14,258 United Biscuits (Holdings)
PLC........................ 46,844
------------
1,262,670
------------
Forest Products (0.1%):
25,130 Arjo Wiggins Appleton PLC.... 67,695
16,437 Rexam PLC.................... 93,162
------------
160,857
------------
Health Care (1.6%):
103,412 Glaxo Wellcome PLC........... 1,440,348
79,962 SmithKline Beecham PLC....... 849,772
------------
2,290,120
------------
Industrial Goods & Services (0.0%):
9,462 BICC Group................... 46,557
------------
Insurance--Property, Casualty, Health & Other (0.7%):
12,704 Commercial Union PLC......... 117,304
14,378 General Accident PLC......... 140,596
33,270 Guardian Royal Exchange
PLC........................ 125,885
13,650 Legal & General Group PLC.... 149,844
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Britain, Continued:
Insurance--Property, Casualty, Health & Other, Continued:
47,936 Prudential Corp. PLC......... $ 323,569
18,763 Royal & Sun Alliance
Insurance Group PLC........ 110,728
53,200 Sedgwick Group PLC(b)........ 102,719
------------
1,070,645
------------
Leisure (0.3%):
24,936 Forte PLC.................... 143,663
32,072 Ladbroke Group PLC........... 93,636
20,954 Rank Organisation PLC........ 156,938
------------
394,237
------------
Machine Tools (0.1%):
9,594 Chubb Security PLC........... 50,941
10,467 Smiths Industries PLC........ 116,369
------------
167,310
------------
Manufacturing (0.2%):
11,909 IMI PLC...................... 68,055
10,129 Tate & Lyle PLC.............. 73,181
10,281 T I Group PLC................ 84,045
------------
225,281
------------
Materials (0.0%):
17,127 Caradon PLC.................. 55,204
------------
Merchandising (1.5%):
26,732 Boots Co. PLC................ 248,081
21,084 Great Universal Stores PLC... 197,964
24,064 Kingfisher PLC............... 233,438
70,627 Marks & Spencer PLC.......... 531,171
38,791 Safeway PLC.................. 198,117
60,278 Sainsbury PLC................ 352,909
63,876 Sears PLC.................... 95,980
58,688 Tesco PLC.................... 267,295
------------
2,124,955
------------
Metals--Non Ferrous (0.3%):
6,443 Johnson Matthey PLC.......... 58,288
26,357 RTZ Corp. PLC................ 381,266
------------
439,554
------------
Metals--Steel (0.2%):
84,908 British Steel PLC............ 235,334
------------
Mining (0.0%):
15,732 English China Clays PLC...... 64,180
------------
</TABLE>
Continued
-68-
<PAGE> 71
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Britain, Continued:
Multi-Industry (0.9%):
132,810 BTR PLC...................... $ 508,724
54,576 Grand Metropolitan PLC....... 369,239
123,446 Hanson PLC................... 308,029
17,281 Pearson PLC.................. 161,718
------------
1,347,710
------------
Oil & Gas Exploration, Production, & Services (0.1%):
6,294 Burmah Castrol PLC........... 97,122
------------
Publishing & Broadcasting (0.8%):
84,749 British Sky Broadcasting
Group PLC.................. 655,854
23,200 Carlton Communications PLC... 165,812
6,060 De La Rue PLC................ 57,088
12,530 Reed International PLC....... 211,298
------------
1,090,052
------------
Real Estate (0.2%):
9,843 Hammerson PLC................ 58,088
19,687 Land Securities PLC.......... 199,561
11,795 MEPC PLC..................... 76,403
6,564 Slough Estates PLC........... 23,303
------------
357,355
------------
Retail (0.1%):
9,590 Argos PLC.................... 106,619
11,029 Next PLC..................... 88,614
------------
195,233
------------
Telecommunications (1.1%):
151,207 British Telecom PLC.......... 855,840
72,082 Cable & Wireless PLC......... 456,812
86,901 Vodafone Group PLC........... 310,544
------------
1,623,196
------------
Textile Manufacturing (0.0%):
22,869 Coats Viyella PLC............ 58,933
------------
Transportation--Airlines (0.1%):
22,817 British Airways PLC.......... 186,168
------------
Transportation--Shipping (0.1%):
18,794 Peninsular & Oriental Steam
Navigation Co. ............ 142,809
------------
Utilities (0.7%):
6,437 Anglian Water PLC............ 56,029
144,404 British Gas PLC.............. 432,839
8,658 East Midlands Electricity
PLC........................ 80,214
2,433 London Electricity PLC....... 23,223
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Britain, Continued:
Utilities, Continued:
35,523 National Grid Group PLC...... $ 97,351
26,891 National Power PLC........... 165,813
2,507 Northern Electric PLC........ 20,494
2,835 Northern Electric PLC,
Preferred.................. 4,492
16,901 Scottish Power PLC........... 82,897
6,355 Southern Electric PLC........ 65,210
------------
1,028,562
------------
Total Britain 24,254,340
------------
DENMARK (0.8%):
Banking (0.2%):
1,599 Den Danske Bank.............. 109,273
3,248 Unidanmark................... 150,068
------------
259,341
------------
Beverages (0.1%):
862 Carlsberg, Class A........... 51,790
736 Carlsberg, Class B(b)........ 43,962
------------
95,752
------------
Commercial Services (0.0%):
1,240 ISS International Service
System, Class B............ 28,973
------------
Engineering (0.0%):
321 FLS Industries, Class B...... 34,682
------------
Food & Household (0.1%):
1,829 Danisco...................... 96,394
------------
Health Care (0.1%):
1,116 Novo Nordisk, Class B........ 161,550
------------
Medical Services (0.0%):
417 Radiometer................... 26,959
------------
Multi-Industry (0.0%):
524 Sophus Berendensen, Class
B.......................... 68,213
------------
Telecommunications (0.1%):
3,051 Tele Danmark, Class B........ 142,038
------------
Transportation--Shipping (0.2%):
4 D/S, Class B................. 138,434
5 D/S 1912, Class B............ 121,217
------------
259,651
------------
Total Denmark 1,173,553
------------
FINLAND (0.5%):
Banking (0.0%):
28,033 Merita, Ltd., Class A........ 59,621
------------
</TABLE>
Continued
-69-
<PAGE> 72
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Finland, Continued:
Electrical & Electronic (0.2%):
3,500 Oy Nokia AB, Class A......... $ 123,155
3,400 Oy Nokia AB, Class K......... 120,015
------------
243,170
------------
Forest Products (0.1%):
6,040 UPM-Kymmene Corp. ........... 131,823
------------
Insurance--Property, Casualty, Health & Other (0.0%):
500 Sampo Insurance Co. Ltd.,
Class A.................... 29,842
------------
Machine Tools (0.0%):
200 Kone Corp., Class B.......... 22,270
------------
Metals--Non Ferrous (0.1%):
3,500 Outokumpu OY, Class A........ 62,747
------------
Multi-Industry (0.1%):
1,300 Metra Oy, Class A............ 63,693
------------
Retail (0.0%):
400 Stockmann AB, Class A........ 22,627
------------
Wholesale (0.0%):
2,000 Kesko........................ 30,288
------------
Total Finland 666,081
------------
FRANCE (6.6%):
Aerospace/Defense (0.1%):
3,150 Thomson CSF.................. 84,648
150 Sagem........................ 89,922
------------
174,570
------------
Automobiles (0.1%):
1,250 PSA Peugeot.................. 151,070
------------
Automotive Parts (0.1%):
1,786 Valeo........................ 91,330
------------
Banking (0.6%):
4,232 Banque Nationale de Paris.... 151,999
4,502 Compagnie de Suez............ 154,220
4,402 Compagnie Financiere de
Paribas.................... 264,947
2,057 Societe Generale............. 226,786
------------
797,952
------------
Beverages (0.5%):
2,600 LVMH (Louis Vuitton Moet
Hennessy).................. 575,386
1,400 Pernod Ricard................ 85,580
------------
660,966
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
France, Continued:
Building Materials (0.1%):
2,963 Lafarge...................... $ 177,566
------------
Business & Public Services (0.4%):
3,950 Compagnie Generale des
Eaux....................... 406,248
2,350 Havas........................ 170,783
------------
577,031
------------
Chemicals (0.4%):
2,200 L'Air Liquide................ 387,379
7,392 Rhone-Poulenc................ 191,098
------------
578,477
------------
Commercial Services (0.1%):
350 Ecco......................... 83,128
200 Sodexho...................... 92,483
------------
175,611
------------
Construction & Housing (0.1%):
700 Bouygues..................... 75,215
------------
Diversified (0.0%):
2,100 Lagardere SCA................ 53,785
------------
Electrical & Electronic (0.3%):
4,620 Alcatel Alsthom.............. 378,091
600 Legrand...................... 98,205
------------
476,296
------------
Energy (0.7%):
7,450 Elf Aquitaine................ 531,580
6,261 Total, Class B............... 449,748
------------
981,328
------------
Financial Services (0.1%):
766 Compagnie Bancaire........... 83,073
850 Credit Foncier de France..... 11,599
100 Societe Eurafrance........... 39,298
------------
133,970
------------
Food & Household (0.3%):
650 Eridania Beghin-Say(b)....... 92,603
1831 Groupe Danone................ 273,623
------------
366,226
------------
Furniture (0.0%):
1,050 Moulinex(b).................. 19,329
------------
</TABLE>
Continued
-70-
<PAGE> 73
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
France, Continued:
Health Care (0.6%):
2,125 L'OREAL...................... $ 660,755
2,769 Sanofi....................... 215,251
------------
876,006
------------
Industrial Goods & Services (0.1%):
3,238 Michelin..................... 146,944
------------
Insurance--Property, Casualty, Health & Other (0.1%):
7,902 Union des Assurances de
Paris(b)................... 164,916
------------
Leisure (0.1%):
876 Accor........................ 116,036
------------
Machine Tools (0.1%):
3,400 Schneider.................... 154,772
800 Sidel........................ 46,421
------------
201,193
------------
Manufacturing (0.1%):
250 Groupe St. Louis............. 65,730
750 Societe BIC.................. 106,099
------------
171,829
------------
Materials (0.2%):
2,373 Compagnie de St. Gobain(b)... 298,187
------------
Merchandising (0.6%):
1,000 Carrefour.................... 548,253
650 Pinault-Printemps-Redoute.... 220,972
350 Promodes..................... 92,093
------------
861,318
------------
Metals--Steel (0.1%):
9,450 Usinor Sacilor............... 131,888
------------
Multi-Industry (0.3%):
4,802 AXA.......................... 262,983
1,200 Lyonnaise des Eaux........... 108,890
------------
371,873
------------
Publishing & Broadcasting (0.1%):
600 Canal Plus................... 143,466
------------
Real Estate (0.2%):
2,550 SEFIMEG...................... 177,562
841 Simco........................ 68,338
250 Unibail...................... 25,712
------------
271,612
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
France, Continued:
Retail (0.1%):
150 Comptoirs Modernes........... $ 69,452
350 Docks De France.............. 88,941
1,550 Establissements Economoiques
du Casino
Guichard-Perrachon......... 62,029
------------
220,422
------------
Textiles (0.0%):
200 Chargeurs International...... 7,944
200 Pathe(b)..................... 47,782
------------
55,726
------------
Total France 9,522,138
------------
GERMANY (6.8%):
Automobiles (0.6%):
10,970 Daimler-Benz(b).............. 582,389
750 Volkswagen................... 253,853
150 Volkswagen, Preferred........ 38,498
------------
874,740
------------
Banking (0.9%):
6,550 Bayer Hypotheken-und Weschel-
Bank....................... 187,098
7,250 Bayerische Vereinsbank....... 245,883
11,250 Deutsche Bank................ 569,832
11,300 Dresdner Bank................ 305,364
------------
1,308,177
------------
Beverages (0.0%):
150 Brau Und Brunnen(b).......... 13,495
------------
Building Materials (0.1%):
50 Bilfinger & Berger Bau....... 19,147
105 Heidelberg Zement............ 71,649
------------
90,796
------------
Business & Public Services (0.2%):
1,420 SAP.......................... 206,328
910 SAP, Preferred Shares........ 130,309
------------
336,637
------------
Chemicals (0.6%):
15,000 BASF......................... 401,582
16,000 Bayer........................ 536,338
------------
937,920
------------
</TABLE>
Continued
-71-
<PAGE> 74
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Germany, Continued:
Construction & Housing (0.1%):
880 AGIV, fuer Industrie und
Verkehrswesen.............. $ 15,655
350 Hochtief..................... 155,180
------------
170,835
------------
Diversified (0.0%):
3,400 Kloeckner-Humboldt-Deutz(b)... 13,436
------------
Electrical & Electronic (0.5%):
13,670 Siemens...................... 719,326
------------
Engineering (0.0%):
100 Strabag(b)................... 8,419
------------
Forest Products (0.0%):
200 PWA-Papierwerke Waldhof-
Aschaffenburg.............. 27,091
------------
Health Care (0.2%):
100 Beiersdorf................... 94,242
1,950 Schering..................... 135,976
------------
230,218
------------
Insurance--Property, Casualty, Health & Other (1.0%):
500 Allianz Holding.............. 918,997
100 AMB Aachener & Muenchener
Beiteiligungs(b)........... 80,119
50 CKAG Colonia Konzern......... 38,872
200 Muenchener Ruckversicherungs-
Gesellschaft............... 447,446
------------
1,485,434
------------
Machine Tools (0.5%):
250 Linde........................ 157,523
400 MAN.......................... 97,637
1,100 Mannesmann................... 395,471
------------
650,631
------------
Materials (0.1%):
300 Degussa...................... 99,402
------------
Merchandising (0.2%):
450 Karstadt..................... 162,242
1,410 Metro(b)..................... 129,435
------------
291,677
------------
Metals--Steel (0.1%):
1,000 Thyssen...................... 178,232
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Germany, Continued:
Multi-Industry (0.3%):
450 Preussag..................... $ 108,008
700 Viag......................... 264,258
------------
372,266
------------
Pharmaceuticals (0.1%):
4,900 Merck KGaA................... 189,638
------------
Rubber & Rubber Products (0.1%):
4,400 Continental.................. 70,385
------------
Shoes & Leather (0.1%):
1,900 Adidas....................... 147,712
------------
Transportation--Airlines (0.1%):
1,200 Lufthansa.................... 171,510
------------
Transportation--Marine (0.0%):
550 Bremer Vulkan Verbund(b)..... 2,166
------------
Utilities--Electric & Gas (1.0%):
14,880 RWE.......................... 532,135
10,800 RWE, Preferred Shares........ 318,764
13,032 VEBA......................... 661,952
------------
1,512,851
------------
Total Germany 9,902,994
------------
HOLLAND (4.2%):
Banking (0.3%):
9,534 ABN Amro Holding............. 505,247
------------
Beverages (0.2%):
1,283 Heineken..................... 289,042
------------
Chemicals (0.2%):
2,240 Akzo Nobel................... 251,372
------------
Computer Software (0.0%):
2,024 Getronics.................... 45,059
------------
Energy (1.5%):
14,794 Royal Dutch Petroleum Co. ... 2,224,905
------------
Financial Services (0.5%):
21,738 ING Groep(b)................. 666,736
------------
Food & Household (0.8%):
3,439 Koninklijke Ahold............ 174,758
1,919 NV Konklijke KNP BT.......... 43,534
8,287 Philips Electronics.......... 274,728
4,565 Unilever..................... 649,811
------------
1,142,831
------------
</TABLE>
Continued
-72-
<PAGE> 75
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Holland, Continued:
Metals--Steel (0.0%):
754 Koninklijke Hoogovens........ $ 25,452
------------
Publishing & Broadcasting (0.3%):
17,660 Elsevier..................... 268,157
1,652 Wolters Kluwer............... 192,089
------------
460,246
------------
Telecommunications (0.3%):
11,351 Royal PTT Nederland.......... 400,338
------------
Transportation--Airlines (0.1%):
2,588 KLM Royal Dutch Air
Lines(b)................... 81,569
------------
Transportation--Misc. (0.0%):
749 Koninklijke Pakhoed.......... 19,484
------------
Total Holland 6,112,281
------------
HONG KONG (3.1%):
Banking (0.5%):
46,646 Bank of East Asia............ 166,779
49,300 Hang Seng Bank............... 489,280
------------
656,059
------------
Business & Public Services (0.1%):
59,000 Wharf Holdings, Ltd. ........ 203,702
------------
Hotels & Motels (0.0%):
19,000 Miramar Hotel & Investment,
Ltd. ...................... 36,731
------------
Multi-Industry (0.7%):
51,000 Hong Kong & Shanghai Hotels,
Ltd. ...................... 85,403
103,000 Hutchison Whampoa, Ltd. ..... 615,335
39,000 Swire Pacific, Ltd., Class
A.......................... 334,105
------------
1,034,843
------------
Publishing & Broadcasting (0.1%):
80,000 South China Morning Post
Holdings, Ltd. ............ 52,758
10,000 Television Broadcasts,
Ltd. ...................... 35,884
------------
88,642
------------
Real Estate (1.0%):
56,000 Cheung Kong Holdings,
Ltd. ...................... 381,982
46,000 Hang Lung Development........ 85,952
131,139 Hopewell Holdings............ 71,646
25,000 Hysan Development Co.,
Ltd. ...................... 69,019
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Hong Kong, Continued:
Real Estate, Continued:
45,385 New World Development Co.,
Ltd. ...................... $ 206,580
38,000 Shangri-La Asia, Ltd. ....... 48,892
61,000 Sun Hung Kai Properties,
Ltd. ...................... 575,818
------------
1,439,889
------------
Restaurant/Food Service (0.0%):
1,600 Melco International
Development, Ltd.(b)....... 460
------------
Telecommunications (0.4%):
285,989 Hong Kong Telecommunications,
Ltd. ...................... 471,511
------------
Transportation--Airlines (0.1%):
120,000 Cathay Pacific Airways....... 197,069
------------
Transportation--Marine (0.0%):
72,000 Shun Tak Holdings, Ltd. ..... 42,129
------------
Utilities--Electric & Gas (0.2%):
50,000 China Light & Power Co.,
Ltd. ...................... 206,896
89,200 Hong Kong & China Gas Co.,
Ltd. ...................... 141,297
------------
348,193
------------
Total Hong Kong 4,519,228
------------
IRELAND (0.3%):
Banking (0.1%):
22,980 Allied Irish Banks........... 125,003
------------
Building Materials (0.1%):
5,550 CRH PLC...................... 51,575
------------
Food & Household (0.1%):
10,362 Greencore Group PLC.......... 49,488
4,102 Kerry Group PLC.............. 39,181
35,193 Waterford Wedgewood PLC...... 41,022
------------
129,691
------------
Forest Products (0.0%):
13,345 Jefferson Smurfit Group
PLC........................ 34,136
------------
Insurance--Life (0.0%):
7,950 Irish Life PLC............... 29,988
------------
Publishing--Newspaper (0.0%):
5,477 Independent Newspapers PLC... 25,714
------------
Total Ireland 396,107
------------
</TABLE>
Continued
-73-
<PAGE> 76
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
ITALY (2.5%):
Automobiles (0.2%):
82,000 Fiat......................... $ 256,908
24,000 Fiat, di Risp................ 39,924
29,000 Fiat, Privileged............. 47,288
------------
344,120
------------
Banking (0.2%):
56,000 Banca Commerciale Italiana... 106,227
57,500 Credito Italiano............. 65,027
23,000 Istituto Bancario San Paolo
di Torina.................. 138,297
8,000 Mediobanca................... 44,132
------------
353,683
------------
Building Materials (0.1%):
11,250 Italcementi.................. 79,517
------------
Computer Software (0.0%):
82,500 Olivetti & Co.(b)............ 38,893
------------
Construction & Housing (0.0%):
3,500 Sirti........................ 21,632
------------
Diversified (0.0%):
23,400 Parmalat Finanziaria......... 29,541
------------
Energy (0.1%):
16,000 Edison....................... 93,524
------------
Financial Services (0.1%):
12,000 Banco Ambrosiano Veneto...... 29,588
16,084 Istituto Mobiliare
Italiano................... 120,823
------------
150,411
------------
Food Processing & Packaging (0.0%):
15,000 Finanziaria Autogrill(b)..... 15,790
15,000 SME Meridonale(b)............ 22,191
------------
37,981
------------
Forest Products (0.0%):
4,000 Burgo (Cartiere)............. 19,199
------------
Industrial Goods & Services (0.1%):
50,000 Pirelli...................... 81,202
------------
Insurance--Property, Casualty, Health & Other (0.6%):
19,250 Assicurazioni Generali....... 441,097
123,794 Instituto Nazionale Delle
Assicurazioni.............. 177,442
9,075 Riunione Adriatici de
Sicurta.................... 87,057
7,075 Riunione Adriatici de
Sicurta, di Risp........... 33,773
5,000 Societa Assicuratrice
Industriale................ 45,927
------------
785,296
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Italy, Continued:
Multi-Industry (0.1%):
92,500 Montedison(b)................ $ 66,415
20,000 Snia BPD..................... 19,857
------------
86,272
------------
Oil & Gas Exploration, Production, & Services (0.4%):
115,646 Ente Nazionale Idrocarburi... 520,101
12,500 Saipem....................... 51,039
------------
571,140
------------
Publishing & Broadcasting (0.0%):
2,925 Mondadori (Arnoldo)
Editore.................... 20,482
------------
Telecommunications (0.6%):
175,000 Telecom Italia............... 330,808
45,000 Telecom Italia, di Risp...... 70,567
180,637 Telecom Italia Mobile........ 377,689
60,025 Telecom Italia Mobile, di
Risp....................... 73,093
------------
852,157
------------
Textiles (0.0%):
3,500 Benetton Group............... 41,089
------------
Utilities--Electric & Gas (0.0%):
19,000 Italgas...................... 64,774
------------
Total Italy 3,670,913
------------
JAPAN (38.8%):
Automobiles (2.3%):
28,000 Honda Motor Co. ............. 676,880
58,000 Nissan Motor Co., Ltd. ...... 472,804
89,000 Toyota Motor Corp. .......... 2,159,850
------------
3,309,534
------------
Banking (8.1%):
54,000 Asahi Bank, Ltd. ............ 602,108
18,000 Ashikaga Bank................ 111,652
143,600 Bank of Tokyo Mitsubishi..... 3,027,407
32,000 Bank of Yokohama............. 277,049
22,000 Chiba Bank................... 195,831
75,000 Dai-Ichi Kangyo Bank......... 1,264,933
69,000 Fuji Bank, Ltd. ............. 1,357,695
13,000 Gunma Bank................... 141,298
60,000 Industrial Bank of Japan..... 1,298,665
</TABLE>
Continued
-74-
<PAGE> 77
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Banking, Continued:
29,000 Joyo Bank.................... $ 224,718
84,000 Sakura Bank, Ltd. ........... 810,682
21,000 Shizuoka Bank................ 249,894
75,000 Sumitomo Bank................ 1,377,372
18,000 The Hokuriku Bank............ 110,471
50,000 Tokai Bank................... 613,727
5,000 Yamazaki Banking Co. ........ 96,041
------------
11,759,543
------------
Beverages (0.4%):
9,000 Asahi Breweries, Ltd. ....... 100,351
27,000 Kirin Brewery Co., Ltd. ..... 321,293
12,000 Sapporo Breweries............ 113,563
5,000 Takara Shuzo Co., Ltd. ...... 44,226
------------
579,433
------------
Building Materials (0.6%):
44,000 Chichibu Onoda Cement
Corp. ..................... 235,821
10,000 Nihon Cement Co., Ltd. ...... 71,211
9,000 Sanwa Shutter Corp. ......... 82,980
13,000 Sekisui Chemical............. 151,042
5,000 Tostem Corp. ................ 152,729
12,000 Toto, Ltd. .................. 168,658
4,000 Toyo Seikan Kaisha, Ltd. .... 134,926
------------
997,367
------------
Business & Public Services (0.6%):
21,000 Dai Nippon Printing Co.,
Ltd. ...................... 395,502
7,000 Dai Nippon Screen............ 58,899
29,000 Toppan Printing Co., Ltd. ... 399,438
------------
853,839
------------
Chemicals (1.4%):
51,000 Asahi Chemical Industry...... 348,840
21,000 Dai Nippon Ink & Chemical,
Inc. ...................... 93,858
6,000 Daicel Chemical Industries... 34,856
33,000 Denki Kagaku Kogyo........... 115,643
13,000 Kaneka Corp. ................ 86,362
52,000 Mitsubishi Chemical Corp. ... 242,155
25,000 Mitsui Toatsu Chemical....... 93,699
11,000 Nippon Shokubai Co. ......... 101,214
8,000 Shin-Etsu Chemical........... 141,673
37,000 Showa Denko K. K.(b)......... 107,473
39,000 Sumitomo Chemical Co.,
Ltd. ...................... 179,058
29,000 Toray Industries, Inc. ...... 197,273
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Chemicals, Continued:
18,000 Tosoh Corp.(b)............... $ 76,233
39,000 Ube Industries, Ltd. ........ 142,881
------------
1,961,218
------------
Construction & Housing (1.1%):
22,000 Aoki Corp. .................. 74,209
19,000 Daiwa House Industry......... 288,405
40,000 Fujita Corp. ................ 164,160
17,000 Haseko Corp.(b).............. 65,945
25,000 Kajima Corp. ................ 238,932
4,000 Misawa Homes................. 35,756
15,000 Obayashi Corp. .............. 129,304
21,000 Penta-Ocean Construction..... 135,573
17,000 Sekisui House, Ltd. ......... 186,367
19,000 Shimizu Corp. ............... 188,709
26,000 Taisei Corp. ................ 172,724
------------
1,680,084
------------
Data Processing (0.4%):
47,000 Fujitsu, Ltd. ............... 417,925
14,000 Ricoh........................ 141,672
------------
559,597
------------
Diversified (0.7%):
4,000 Ebara Corp. ................. 62,591
7,000 Kurita Water................. 170,532
10,000 Makita Corp. ................ 154,603
24,000 Mitsubishi Materials......... 121,433
19,000 NSK, Ltd. ................... 133,877
12,000 Shimano, Inc. ............... 239,494
6,000 Toyoda Automatic Loom
Works...................... 117,498
------------
1,000,028
------------
Electrical & Electronic (1.0%):
76,000 Hitachi, Ltd. ............... 692,883
49,000 Mitsubishi Electric Corp. ... 321,387
35,000 NEC Corp. ................... 367,299
------------
1,381,569
------------
Electronic Components (1.3%):
4,200 Advantest Corp. ............. 164,104
3,000 Alps Electric Co., Ltd. ..... 35,980
5,500 Fanuc........................ 212,321
4,000 Kyocera...................... 273,975
5,000 Myrata Manufacturing......... 179,433
6,000 Omron Corp. ................. 110,190
5,000 Pioneeer Electronic Corp. ... 106,348
</TABLE>
Continued
-75-
<PAGE> 78
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Electronic Components, Continued:
6,000 Rohm Co., Ltd. .............. $ 359,803
3,000 Secom Co., Ltd. ............. 196,767
3,000 Tokyo Electron, Ltd. ........ 84,610
2,000 Uniden Corp. ................ 40,291
11,000 Yokogawa Electric............ 103,069
------------
1,866,891
------------
Energy (0.4%):
39,000 Japan Energy Corp. .......... 140,323
17,000 Mitsubishi Oil Co., Ltd. .... 136,351
48,000 Nippon Oil Co., Ltd. ........ 308,531
------------
585,205
------------
Engineering (0.3%):
4,000 Daito Trust Construction
Co. ....................... 52,471
5,000 Kandenko Co. ................ 62,778
8,000 Kinden Corp. ................ 126,681
15,000 Kumagi Gumi Co., Ltd.(b)..... 56,079
6,000 Sumitomo Forestry Co.,
Ltd. ...................... 94,448
9,000 Toa Corp. ................... 57,850
------------
450,307
------------
Entertainment (0.2%):
3,400 Sega Enterprise, Ltd. ....... 155,146
700 Toho Co., Ltd. .............. 123,308
7,000 Tokyo Dome Corp. ............ 133,146
------------
411,600
------------
Financial Services (2.1%):
13,000 77 Bank...................... 129,117
34,000 Daiwa Securities Co.,
Ltd. ...................... 410,963
4,000 Jaccs........................ 36,168
32,000 Mitsubishi Trust & Banking... 533,708
29,000 Mitsui Trust & Banking....... 315,202
51,000 Nomura Securities Co.,
Ltd. ...................... 893,605
2,000 Orix Corp. .................. 78,707
4,000 Yamaguchibank................ 67,088
70,000 Yamaichi Securities.......... 458,468
29,000 Yasuda Trust & Banking....... 163,036
------------
3,086,062
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Food & Household (0.4%):
19,000 Ajinomoto.................... $ 215,413
18,000 Kao Corp. ................... 239,494
15,000 Meiji Seika.................. 91,919
11,000 Nichirei Corp. .............. 75,755
------------
622,581
------------
Food Processing & Packaging (0.1%):
2,000 House Foods Corp. ........... 37,667
10,000 Meiji Milk Products.......... 61,935
3,000 Nissin Food Products......... 77,864
------------
177,466
------------
Forest Products (0.3%):
12,000 Honshu Paper Co., Ltd. ...... 85,228
20,000 New Oji Paper Co., Ltd. ..... 174,843
22,000 Nippon Paper Industries
Co. ....................... 141,822
------------
401,893
------------
Health Care (1.2%):
13,000 Chugai Pharmaceutical........ 120,468
9,000 Kyowa Hakko Kogyo............ 81,040
10,000 Sankyo Co., Ltd. ............ 259,546
23,000 Shiseido Co., Ltd. .......... 293,090
11,000 Taisho Pharmaceutical........ 237,058
27,000 Takeda Chemical Industries... 473,085
10,000 Tanabe Seiyaku............... 78,520
7,000 Yamanouchi Pharmaceutical.... 153,478
------------
1,696,285
------------
Hotels & Motels (0.1%):
4,000 Fujita Kanko, Inc. .......... 80,956
------------
Household Goods (1.4%):
48,000 Matsushita Electric
Industrial Co. ............ 836,543
55,000 Sanyo Electric Co., Ltd. .... 304,052
27,000 Sharp Corp. ................. 435,137
8,000 Sony Corp. .................. 505,973
------------
2,081,705
------------
Industrial Goods & Services (1.0%):
19,000 Bridgestone Corp. ........... 345,374
8,000 N G K Insulators, Ltd. ...... 88,452
6,000 N G K Sparkplug Co., Ltd. ... 65,214
26,000 Nippondenso Co., Ltd. ....... 543,265
29,000 Sumitomo Electric
Industries................. 402,155
------------
1,444,460
------------
</TABLE>
Continued
-76-
<PAGE> 79
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Insurance--Fire & Marine (0.8%):
22,000 Mitsui Marine & Fire
Insurance.................. $ 163,261
24,000 Sumitomo Marine & Fire....... 197,892
9,000 The Nichido Fire & Marine.... 67,632
23,000 The Nippon Fire & Marine
Insurance.................. 148,053
46,000 Tokio Marine & Fire
Insurance.................. 573,249
------------
1,150,087
------------
Leisure (0.1%):
16,000 Konica Corp. ................ 108,990
------------
Machine Tools (1.3%):
10,000 Amada Co., Ltd. ............. 95,572
9,000 Daikin Industries, Ltd. ..... 95,291
36,000 Komatsu, Ltd. ............... 330,232
62,000 Kubota Corp. ................ 404,330
77,000 Mitsubishi Heavy Industries,
Ltd. ...................... 652,940
44,000 Mitsui Engineer &
Shipbuild(b)............... 122,445
6,000 Mori Seiki Co., Ltd. ........ 107,379
------------
1,808,189
------------
Materials (0.3%):
26,000 Asahi Glass Co., Ltd. ....... 297,212
22,000 Nippon Sheet Glass........... 98,946
------------
396,158
------------
Merchandising (1.5%):
16,000 Daiei, Inc. ................. 184,399
10,000 Ito-Yokado Co., Ltd. ........ 578,121
9,000 Jusco........................ 290,091
10,000 Marui Co., Ltd. ............. 208,948
27,000 Mitsukoshi, Ltd. ............ 285,875
9,000 Seven-Eleven Japan........... 570,907
9,000 Takashimaya Co. ............. 129,867
------------
2,248,208
------------
Metals--Non Ferrous (0.4%):
27,000 Furukawa Electric............ 155,840
35,000 Nippon Light Metal Co. ...... 195,456
19,000 NTN Corp. ................... 135,301
14,000 Sumitomo Metal Mining Co. ... 119,503
------------
606,100
------------
Metals--Steel (1.2%):
24,000 Daido Steel Co., Ltd. ....... 113,338
78,000 Kawasaki Steel............... 276,992
81,000 Kobe Steel, Ltd.(b).......... 220,098
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Metals--Steel, Continued:
178,000 Nippon Steel Co. ............ $ 592,083
83,000 NKK Corp.(b)................. 237,198
89,000 Sumitomo Metal Industries.... 267,688
------------
1,707,397
------------
Oil & Gas Exploration, Production & Services (0.1%):
28,000 Cosmo Oil Co., Ltd. ......... 176,566
------------
Pharmaceuticals (0.2%):
7,000 Daiichi Pharmaceutical....... 114,125
6,000 Eisai Co., Ltd. ............. 110,752
------------
224,877
------------
Publishing & Broadcasting (0.2%):
17,000 Tokyo Broadcasting........... 278,754
------------
Real Estate (0.4%):
32,000 Mitsubishi Estate Co.,
Ltd. ...................... 419,770
20,000 Mitsui Fudosan............... 258,609
------------
678,379
------------
Recreation (1.0%):
24,000 Canon, Inc. ................. 454,252
41,000 Citizen Watch Co., Ltd. ..... 334,223
16,000 Fuji Photo Film.............. 478,238
13,000 Olympus Optical Co., Ltd. ... 126,681
------------
1,393,394
------------
Retail (0.5%):
5,000 Aoyama Trading Co., Ltd. .... 137,269
10,900 Credit Saison................ 264,521
3,000 Hankyu Department Stores..... 41,040
6,000 Istetan...................... 89,389
8,000 Mycal Corp. ................. 129,679
4,000 Seiyu, Ltd. ................. 52,096
------------
713,994
------------
Retail--Specialty Stores (0.1%):
3,000 Hoya Corp. .................. 91,075
------------
Rubber & Rubber Products (0.1%):
15,000 Okamoto Industries, Inc. .... 88,967
------------
Textiles (0.2%):
26,000 Teijin, Ltd. ................ 136,426
31,000 Toyobo, Ltd. ................ 104,277
------------
240,703
------------
Transportation--Airlines (0.2%):
39,000 Japan Airlines(b)............ 324,498
------------
</TABLE>
Continued
-77-
<PAGE> 80
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Transportation--Rail (1.7%):
161 East Japan Railway(b)........ $ 837,245
27,000 Hankyu Corp.(b).............. 154,575
33,000 Kinki Nippon Railway......... 240,871
18,000 Nagoya Railroad Co., Ltd. ... 86,353
5,000 Nankai Electric Railway...... 31,623
24,000 Nippon Express Co., Ltd. .... 227,126
27,000 Odakyu Electric Railway...... 182,150
33,000 Tobu Railway Co., Ltd. ...... 214,280
33,000 Tokyu Corp. ................. 228,812
16,000 Yamato Transport Co.,
Ltd. ...................... 187,398
------------
2,390,433
------------
Transportation--Shipping (0.2%):
24,000 Kawasaki Kisen(b)............ 70,162
31,000 Mitsui O.S.K. Lines,
Ltd.(b).................... 101,082
22,000 Nippon Yusen Kabushiki
Kaish...................... 123,888
------------
295,132
------------
Utilities--Electric & Gas (1.6%):
20,900 Kansai Electric Power........ 477,826
82,000 Osaka Gas Co. ............... 296,575
9,661 Tohoku Electric Power........ 220,875
31,700 Tokyo Electric Power......... 804,938
143,000 Tokyo Gas Co., Ltd. ......... 509,159
------------
2,309,373
------------
Wholesale (1.3%):
63,000 Itochu Corp. ................ 413,212
38,000 Marubeni Corp. .............. 201,883
37,000 Mitsubishi Corp. ............ 468,025
36,000 Mitsui & Co. ................ 317,751
17,000 Nagase & Co. Ltd. ........... 156,102
29,000 Sumitomo Corp. .............. 263,575
------------
1,820,548
------------
Total Japan 56,039,445
------------
MALAYSIA (2.3%):
Agriculture & Livestock (0.1%):
67,000 Highlands & Lowlands
Berhad..................... 112,224
------------
Automobiles (0.1%):
11,000 Edaran Otomobile Nasional.... 106,229
25,000 Perusahaan Otomobil Nasional
Berhad..................... 124,222
------------
230,451
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Malaysia, Continued:
Banking (0.2%):
14,000 DCB Holdings Berhad.......... $ 42,636
35,000 Malayan Banking Berhad....... 298,733
------------
341,369
------------
Building Materials (0.1%):
9,000 Hume Industries Berhad....... 44,720
58,000 Pan Malaysia-Cement Works
Berhad..................... 60,428
------------
105,148
------------
Construction & Housing (0.0%):
95,000 Amsteel Corp. Berhad......... 66,619
------------
Engineering (0.1%):
23,500 YTL Corp. Berhad............. 109,235
------------
Financial Services (0.3%):
12,000 AMMB Holdings Berhad......... 145,460
74,333 Public Bank Berhad........... 137,018
30,000 Technology Resources
Industries Berhad(b)....... 91,964
------------
374,442
------------
Forest Products (0.0%):
24,000 Land & General Berhad........ 42,893
------------
Leisure (0.2%):
61,500 Magnum Corp. Berhad.......... 96,112
37,000 Resorts World Berhad......... 176,435
------------
272,547
------------
Machine Tools (0.1%):
18,000 United Engineers, Ltd. ...... 121,176
------------
Materials (0.1%):
75,000 Golden Hope Plantations
Berhad..................... 117,209
------------
Multi-Industry (0.1%):
39,000 Multi-Purpose Holdings
Berhad(b).................. 52,510
55,000 Sime Darby Berhad............ 159,785
------------
212,295
------------
Real Estate (0.1%):
61,000 Hong Leong................... 63,309
33,000 Malaysian Resources Corp.
Berhad..................... 82,648
------------
145,957
------------
Telecommunications (0.3%):
51,000 Telekom Malaysia Berhad...... 412,817
------------
</TABLE>
Continued
-78-
<PAGE> 81
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Malaysia, Continued:
Tobacco & Tobacco Products (0.1%):
12,000 Rothmans of Pall Mall
Berhad..................... $ 117,810
------------
Transportation--Airlines (0.0%):
25,000 Malaysian Airline System
Berhad..................... 77,138
------------
Transportation--Shipping (0.1%):
36,000 Malaysian International
Shipping Berhad............ 108,914
------------
Utilities--Electric & Gas (0.3%):
94,000 Tenaga Nasional Berhad....... 395,506
------------
Total Malaysia 3,363,750
------------
NEW ZEALAND (0.4%)
Beverages (0.0%):
13,326 Lion Nathan, Ltd. ........... 35,101
------------
Building Materials (0.0%):
4,600 Fletcher Challenge
Building................... 9,928
------------
Forest Products (0.1%):
49,289 Carter Holt Harvey, Ltd. .... 114,194
30,572 Fletcher Challenge, Ltd. .... 36,048
9,200 Fletcher Challenge
Paper(b)................... 18,016
------------
168,258
------------
Multi-Industry (0.1%):
66,325 Brierley Investments,
Ltd. ...................... 64,484
------------
Oil & Gas Exploration, Production, & Services (0.0%):
4,600 Fletcher Challenge
Energy(b).................. 10,055
------------
Publishing & Broadcasting (0.0%):
4,598 Wilson & Horton, Ltd. ....... 30,119
------------
Telecommunications (0.2%):
45,535 Telecom Corp. of New Zealand,
Ltd. ...................... 209,109
------------
Total New Zealand 527,054
------------
NORWAY (0.4%):
Chemicals (0.0%):
1,200 Dyno Industrier.............. 26,946
------------
Energy (0.2%):
5,250 Norsk Hydro.................. 226,708
------------
Forest Products (0.0%):
700 Norske Skogindustrier, Class
A.......................... 21,764
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Norway, Continued:
Health Care (0.0%):
1,050 Nycomed, Class A(b).......... $ 15,334
1,600 Nycomed, Class B(b).......... 22,738
------------
38,072
------------
Insurance--Property, Casualty, Health & Other (0.0%):
7,398 UNI Storebrand, Class A(b)... 35,896
------------
Machine Tools (0.1%):
1,450 Kvaerner, Class A............ 56,467
------------
Multi-Industry (0.1%):
1,250 Orkla........................ 65,559
------------
Oil & Gas Exploration, Production, & Services (0.0%):
1,700 Petroleum Geo-Services(b).... 46,449
------------
Transportation--Shipping (0.0%):
2,400 Bergesen, Class A............ 50,877
------------
Utilities--Electric & Gas (0.0%):
1,050 Hafslund, Class A............ 7,832
1,600 Hafslund, Class B............ 10,427
------------
18,259
------------
Total Norway 586,997
------------
SINGAPORE (1.3%):
Automobiles (0.0%):
3,000 Cycle & Carriage, Ltd. ...... 27,174
------------
Banking (0.3%):
15,000 Development Bank of
Singapore.................. 169,834
15,000 United Overseas Bank,
Ltd. ...................... 131,622
------------
301,456
------------
Beverages (0.0%):
6,000 Fraser & Neave, Ltd. ........ 60,291
------------
Financial Services (0.2%):
25,000 OCBC......................... 279,519
------------
Household Goods (0.0%):
29,000 Amcol Holdings, Ltd. ........ 53,767
------------
Leisure (0.0%):
12,000 Shangri La Hotel, Ltd. ...... 39,911
------------
Machine Tools (0.1%):
12,000 Keppel Corp. ................ 90,862
------------
Metals--Steel (0.0%):
26,000 Natsteel, Ltd. .............. 43,789
------------
</TABLE>
Continued
-79-
<PAGE> 82
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Singapore, Continued:
Multi-Industry (0.0%):
8,000 Straits Steamship............ $ 25,136
32,000 United Industrial Corp. ..... 28,079
------------
53,215
------------
Publishing & Broadcasting (0.1%):
7,000 Singapore Press Holdings..... 121,856
------------
Real Estate (0.1%):
15,000 City Developments............ 112,515
20,000 DBS Land..................... 63,122
------------
175,637
------------
Telecommunications (0.3%):
158,000 Singapore
Telecommunications(b)...... 386,855
------------
Transportation--Airlines (0.2%):
29,000 Singapore Airlines........... 291,408
------------
Transportation--Shipping (0.0%):
47,000 Neptune Orient Lines......... 44,235
------------
Total Singapore 1,969,975
------------
SPAIN (1.9%):
Banking (0.5%):
3,026 Corporacion Bancaria De
Espana..................... 118,204
6,181 Banco Bilbao Vizcaya......... 259,642
3,925 Banco Central
Hispanoamericano........... 75,256
6,271 Banco de Santander........... 301,838
------------
754,940
------------
Beverages (0.1%):
1,563 Tabacalera................... 70,133
------------
Business & Public Services (0.0%):
5,445 Autopistas Concesionaria
Espanola................... 58,264
------------
Construction & Housing (0.0%):
640 Fomento De Construccion y
Contratas.................. 51,681
------------
Energy (0.2%):
8,248 Repsol....................... 276,913
------------
Insurance--Property, Casualty, Health & Other (0.0%):
1,047 Corporacion Mafre cia
International.............. 45,896
------------
Manufacturing (0.1%):
823 Zardoya-Otis................. 77,505
------------
Metal--Steel (0.0%):
294 Acerinox, Registered......... 29,471
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Spain, Continued:
Multi-Industry (0.0%):
579 Corporacion Financiera
Alba....................... $ 47,722
------------
Real Estate (0.1%):
1,062 Inmobiliaria Metropolitana
Vasco Central.............. 35,359
1,915 Vallehermoso................. 34,356
------------
69,715
------------
Telecommunications (0.3%):
23,269 Telefonica De Espana......... 405,419
------------
Utilities--Electric & Gas (0.6%):
7,057 Empresa Nacional de
Electridad................. 412,657
958 Gas Natural SDG.............. 186,730
22,505 Iberdrola.................... 205,006
9,913 Union Electrica Fenosa....... 60,095
------------
864,488
------------
Total Spain 2,752,147
------------
SWEDEN (2.2%):
Automobiles (0.2%):
5,933 Volvo AB, Class A............ 128,395
7,321 Volvo AB, Class B............ 158,433
------------
286,828
------------
Automotive Parts (0.0%):
1,200 Autoliv AB, Class B.......... 34,141
------------
Banking (0.3%):
2,666 Skandia Group Foersaekrings
AB......................... 66,369
14,559 Skandinaviska Enskildea
Banken, Class A............ 118,978
3,862 Stadshypotek................. 88,837
6,718 Svenska Handelsbanken........ 139,273
------------
413,457
------------
Building Materials (0.0%):
1,200 Scancem AB................... 36,865
------------
Chemicals (0.1%):
5,458 AGA AB, Class A.............. 88,380
2,150 AGA AB, Class B.............. 33,513
------------
121,893
------------
Construction & Housing (0.1%):
3,259 Skanska AB, Class B.......... 109,984
------------
</TABLE>
Continued
-80-
<PAGE> 83
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Sweden, Continued:
Electrical & Electronic (0.5%):
1,385 ABB, Class A................. $ 142,527
550 ABB, Class B................. 56,017
26,627 Ericsson LM, Class B......... 533,921
------------
732,465
------------
Forest Products (0.2%):
8,716 Stora Kopparbergs Bergslags
AB, Class A................ 109,480
5,310 Svenska Cellulosa AB, Class
B.......................... 110,895
------------
220,375
------------
Health Care (0.5%):
13,507 Astra AB, Class A............ 567,232
2,900 Astra AB, Class B............ 119,593
------------
686,825
------------
Household Goods (0.0%):
1,491 Electrolux AB, Class B....... 73,107
------------
Industrial Goods & Services (0.1%):
3,000 S.K.F. AB, Class B(b)........ 63,788
2,000 Trelleborg AB, Class B....... 24,819
------------
88,607
------------
Insurance--Property, Casualty, Health & Other (0.1%):
3,400 Skanddia Forsakrings AB(b)... 84,642
------------
Machine Tools (0.0%):
4,120 Atlas Copco AB, Class A...... 72,638
------------
Merchandising (0.1%):
1,237 Hennes & Mauritz AB, Class
B.......................... 112,321
------------
Real Estate (0.0%):
665 Nackebro(b).................. 8,554
------------
Tobacco & Tobacco Products (0.0%):
9,654 Swedish Match AB(b).......... 28,489
------------
Total Sweden 3,111,191
------------
SWITZERLAND (5.9%):
Banking (1.1%):
5,220 CS Holding, Registered....... 551,668
570 Schweiz Bankgesellschaft,
Class B.................... 552,872
1,939 Schweizerische Bankverein,
Registered................. 360,838
520 Union Bank of Switzerland.... 105,784
------------
1,571,162
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Switzerland, Continued:
Building Materials (0.1%):
241 Holderbank Finan Glaris,
Class B.................... $ 180,402
------------
Business & Public Services (0.1%):
150 Adia SA Swiss
Bearershareschf............ 36,843
34 Societe Generale de
Surveillance Holding....... 79,108
116 Societe Generale de
Surveillance, Registered... 50,879
------------
166,830
------------
Chemicals (0.7%):
140 Ciba-Geigy AG, Class B....... 165,267
690 Ciba-Geigy AG, Registered.... 819,144
------------
984,411
------------
Construction & Housing (0.0%):
25 Schindler Holding............ 24,437
25 Schindler Holding,
Registered................. 23,601
------------
48,038
------------
Electrical & Electronic (0.2%):
207 ABB AG....................... 245,224
------------
Household Goods (0.9%):
1,130 Nestle SA, Registered........ 1,290,518
------------
Insurance--Property, Casualty, Health & Other (0.5%):
350 Schweiz Rueckversicherungs,
Registered................. 347,670
1,200 Zurich Versicherungs,
Registered................. 313,793
------------
661,463
------------
Metals--Non Ferrous (0.1%):
100 Alusuisse-Lonza Holding Ltd.,
Registered................. 77,028
------------
Health Care (2.1%):
46 Roche Holding AG--Bearer..... 553,398
194 Roche Holding
AG--Genussshein............ 1,431,131
915 Sandoz AG, Registered........ 1,021,280
55 Sandoz, Ltd. ................ 61,021
------------
3,066,830
------------
Recreation (0.1%):
300 Swiss Corp. for
Microelectronics........... 44,362
106 Swiss Corp. for
Microelectronics-Bearer.... 68,809
------------
113,171
------------
</TABLE>
Continued
-81-
<PAGE> 84
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Switzerland, Continued:
Retail (0.0%):
280 Merkur Holding AG,
Registered................. $ 47,955
------------
Transportation--Airlines (0.0%):
50 Swissair..................... 44,696
------------
Total Switzerland 8,497,728
------------
Total Common Stock 143,044,103
------------
RIGHTS & WARRANTS (0.0%):
RIGHTS (0.0%):
FRANCE (0.0%):
5 L'OREAL...................... 0
------------
SWITZERLAND (0.0%):
50 Schindler Holding............ 25
------------
Total Rights 25
------------
WARRANTS (0.0%):
HONG KONG (0.0%):
1,250 Hysan Development Co.,
Ltd. ...................... 565
5,600 Hong Kong & China Gas Co.,
Ltd. ...................... 1,245
------------
1,810
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
RIGHTS & WARRANTS, CONTINUED:
SWITZERLAND (0.0%):
195 Schweizerischer Bankverein... $ 545
209 Roche Holding AG............. 5,586
------------
6,131
------------
Total Warrants 7,941
------------
Total Rights & Warrants 7,966
------------
INVESTMENT COMPANIES (0.8%):
254,825 Bank of New York Cash
Reserve.................... 254,825
86,513 SEI Core International....... 872,049
------------
Total Investment Companies 1,126,874
------------
Total (Cost $140,471,512)(a) $144,178,943
===========
</TABLE>
- ---------
Percentages are based on net assets of $144,482,542.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting in excess of federal income reporting of approximately
$12,462. Cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation..... $ 9,415,073
Unrealized depreciation..... (5,720,104)
-----------
Net unrealized
appreciation.............. $ 3,694,969
==========
</TABLE>
(b) Non-income producing security.
See notes to financial statements.
-82-
<PAGE> 85
QUALIVEST FUNDS
ALLOCATED CONSERVATIVE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1996
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- -------- --------------------------------- ----------
<C> <S> <C>
INVESTMENT COMPANIES (100.0%):
247,480 Qualivest Diversified Bond (Class
Y)............................. $2,484,703
240,217 Qualivest Intermediate Bond Fund
(Class Y)...................... 2,404,576
57,080 Qualivest International
Opportunities Fund (Class Y)... 610,188
76,699 Qualivest Large Companies (Class
Y)............................. 918,860
150,730 Qualivest Money Market (Class
Y)............................. 150,730
50,489 Qualivest Optimized Stock (Class
Y)............................. 611,929
28,030 Qualivest Small Companies (Class
Y)............................. 391,298
----------
Total Investment Companies 7,572,284
----------
Total (Cost--$7,657,694)(a) $7,572,284
=========
</TABLE>
- ---------
Percentages indicated are based on net assets of $7,572,595.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting in excess of federal income tax reporting of
approximately $2,083. Cost for federal income tax purposes differs from
value by net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation...... $ 12,450
Unrealized depreciation...... (99,943)
--------
Net unrealized
depreciation............... $(87,493)
========
</TABLE>
See notes to financial statements.
-83-
<PAGE> 86
QUALIVEST FUNDS
ALLOCATED BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1996
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- -------- -------------------------------- -----------
<C> <S> <C>
INVESTMENT COMPANIES (100.0%):
904,024 Qualivest Diversified Bond
(Class Y)..................... $ 9,076,398
565,578 Qualivest Intermediate Bond Fund
(Class Y)..................... 5,661,431
537,546 Qualivest International
Opportunities Fund (Class
Y)............................ 5,746,372
706,355 Qualivest Large Companies
(Class Y)..................... 8,462,131
810,734 Qualivest Money Market (Class
Y)............................ 810,734
443,833 Qualivest Optimized Stock
(Class Y)..................... 5,379,256
225,321 Qualivest Small Companies
(Class Y)..................... 3,145,485
-----------
Total Investment Companies 38,281,807
-----------
Total (Cost--$39,401,861)(a) $38,281,807
===========
</TABLE>
- ---------
Percentages indicated are based on net assets of $38,282,636.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting in excess of federal income tax reporting of
approximately $3,549. Cost for federal income tax purposes differs from
value by net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $ 21,957
Unrealized depreciation... (1,145,560)
-----------
Net unrealized
depreciation............ $(1,123,603)
===========
</TABLE>
See notes to financial statements.
-84-
<PAGE> 87
QUALIVEST FUNDS
ALLOCATED GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1996
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- -------- -------------------------------- -----------
<C> <S> <C>
INVESTMENT COMPANIES (100.0%):
116,073 Qualivest Diversified Bond
(Class Y)..................... $ 1,165,370
73,935 Qualivest Intermediate Bond Fund
(Class Y)..................... 740,089
200,798 Qualivest International
Opportunities Fund (Class
Y)............................ 2,146,529
251,801 Qualivest Large Companies
(Class Y)..................... 3,016,570
255,319 Qualivest Money Market (Class
Y)............................ 255,319
168,726 Qualivest Optimized Stock
(Class Y)..................... 2,044,957
102,532 Qualivest Small Companies
(Class Y)..................... 1,431,347
-----------
Total Investment Companies 10,800,181
-----------
Total (Cost--$11,154,161)(a) $10,800,181
===========
</TABLE>
- ---------
Percentages indicated are based on net assets of $10,800,622.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting in excess of federal income tax reporting of
approximately $9,342. Cost for federal income tax purposes differs from
value by net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation..... $ 7,022
Unrealized depreciation..... (370,344)
---------
Net unrealized
depreciation.............. $(363,322)
=========
</TABLE>
See notes to financial statements.
-85-
<PAGE> 88
QUALIVEST FUNDS
ALLOCATED AGGRESSIVE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1996
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- -------- --------------------------------- ----------
<C> <S> <C>
INVESTMENT COMPANIES (100.0%):
194,595 Qualivest International
Opportunities Fund (Class Y)... $2,080,221
222,561 Qualivest Large Companies (Class
Y)............................. 2,666,279
153,938 Qualivest Money Market (Class
Y)............................. 153,938
126,858 Qualivest Optimized Stock (Class
Y)............................. 1,537,518
126,792 Qualivest Small Companies
(Class Y)...................... 1,770,021
----------
Total Investment Companies 8,207,977
----------
Total (Cost--$8,497,472)(a) $8,207,977
==========
</TABLE>
- ---------
Percentages indicated are based on net assets of $8,208,424.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting in excess of federal income tax reporting of
approximately $3,512. Cost for federal income tax purposes differs from
value by net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation..... $ 13,699
Unrealized depreciation..... (306,706)
---------
Net unrealized
depreciation.............. $(293,007)
=========
</TABLE>
See notes to financial statements.
-86-
<PAGE> 89
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS
JULY 31, 1996
1. ORGANIZATION:
Qualivest Funds (the "Trust") was organized on May 19, 1994, and is
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as an open-end management investment company established as a
Massachusetts business trust. The Trust is authorized to issue an unlimited
number of units of beneficial interest "shares" to the public and includes
the following diversified investment portfolios (each a "Fund" and
collectively, the "Funds"): Qualivest Money Market Fund, Qualivest U.S.
Treasury Money Market Fund and Qualivest Tax-Free Money Market Fund
(collectively "the money market funds"), each of which offers Class A, Class
Y and Class Q shares; Qualivest Intermediate Bond Fund, Qualivest Diversified
Bond Fund, Qualivest Small Companies Value Fund, Qualivest Large Companies
Value Fund, Qualivest Optimized Stock Fund, Qualivest International
Opportunities Fund, Qualivest Tax-Free National Bond Fund and Qualivest
Income Equity Value Fund, (known as the "variable net asset value funds"),
each of which offers Class A, Class C and Class Y Shares; Qualivest Allocated
Conservative Fund, Qualivest Allocated Balanced Fund, Qualivest Allocated
Growth Fund and Qualivest Allocated Aggressive Fund, (known as the "dynamic
allocation series"), each of which offers Class A, and Class Y shares. Sales
of shares of the Funds may be made to customers of the United States National
Bank of Oregon ("U.S. Bank") and its affiliates, to all accounts of
correspondent banks of U.S. Bank and to the general public. The Trust does
not intend to offer shares of the Qualivest Tax-Free National Bond Fund or
the Qualivest Income Equity Value Fund to the public at this time. Between
the date of organization and the date of commencement of operations, the
Trust had no operations other than those actions relating to organizational
matters, including the sale of initial shares.
Certain purchases of Class A shares are subject to front-end sales charges,
while certain redemptions of Class C shares may be subject to a contingent
deferred sales charges, all in accordance with the Trust's current
prospectuses. Each class of shares for each Fund has identical rights and
privileges except with respect to distribution (12b-1) fees paid by the Class
A, Class C and Class Q shares, voting rights on matters affecting a single
class of shares and the exchange privileges of each class of shares.
The Fund's investment objectives are as follows:
<TABLE>
<CAPTION>
FUND OBJECTIVE
--------------------------------- --------------------------------------------------------
<S> <C>
Money Market Fund................ The Fund seeks current income consistent with liquidity
and stability of principal. It invests in high quality
short-term money market instruments.
U.S. Treasury Money Market The Fund seeks current income consistent with the
Fund........................... liquidity and stability of principal. It invests
primarily in short term U.S. Treasury Bills, notes and
bonds and in other money market instruments issued or
guaranteed by the U.S. Government.
</TABLE>
Continued
-87-
<PAGE> 90
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
FUND OBJECTIVE
--------------------------------- --------------------------------------------------------
<S> <C>
Tax-Free Money Market Fund....... The Fund seeks current income, free from federal income
tax, consistent with liquidity and stability of
principal. Under normal market conditions and as a
fundamental policy, at least 80% of the net assets of
the Tax-Free Money Market Fund will be invested in high
quality Money Market instruments the interest on which
is both exempt from federal income tax and not treated
as a preference item for individuals for purposes of the
federal alternative minimum tax.
Intermediate Bond Fund........... The Fund seeks current income consistent with
preservation of capital. It invests primarily in debt
obligations which include corporate debt obligations,
mortgage-related securities and obligations issued or
guaranteed by the U.S. Government or its agencies or
instrumentalities.
Diversified Bond Fund............ The Fund seeks current income consistent with
preservation of capital. It invests primarily in
obligations issued or guaranteed by the U.S. Government
or its agencies or instrumentalities, corporate debt
obligations and mortgage related securities.
Small Companies Value Fund....... The Fund seeks capital appreciation. It invests
primarily in common stocks and securities convertible
into common stock of small-sized companies.
Large Companies Value Fund....... The Fund seeks long-term capital appreciation. It
invests primarily in common stocks and securities
convertible into common stocks of large capitalization
companies.
Optimized Stock Fund............. The Fund seeks capital appreciation and current income.
It invests primarily in common stocks and securities
convertible into common stocks of companies whose
securities are listed on the S&P 500 Index.
International Opportunities The Fund seeks capital appreciation. It invests
Fund........................... primarily in common stocks and securities convertible
into common stocks of companies that are organized under
the laws of at least three countries other than the U.S.
whose securities are listed on the EAFE Index.
Allocated Conservative Fund...... The Fund seeks to produce current income with a
secondary objective of long-term capital appreciation.
The Fund concentrates its investments in Underlying
Funds that invest primarily in fixed income securities
and short-term money market instruments. The
Conservative Fund also may invest a portion of its
assets in Underlying Funds that invest primarily in
equity securities.
</TABLE>
Continued
-88-
<PAGE> 91
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
FUND OBJECTIVE
--------------------------------- --------------------------------------------------------
<S> <C>
Allocated Balanced Fund.......... The Fund seeks to provide a balance between long-term
capital appreciation and current income. The Fund
broadly diversifies its assets among most or all of the
Underlying Funds, with emphasis placed on investments in
equity funds and the income funds.
Allocated Growth Fund............ The Fund seeks to provide capital appreciation and
income growth. The Fund seeks capital appreciation
primarily through an equity-oriented investment. This
Fund focuses on investment in the Equity Funds, although
it also will invest in the Income Funds and Money Market
Funds. However, this Fund emphasizes the potential
rewards and risks of an investment in equity securities.
Allocated Aggressive Fund........ The Fund seeks to provide maximum capital appreciation.
The Fund seeks this objective by investing substantially
all of its assets in those Underlying Funds that invests
primarily in equity securities. The Fund is oriented
toward those investors seeking long-term capital
appreciation, with the potential for greater gains but
with greater risk of loss.
</TABLE>
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements requires management to make estimates and assumptions
which affect the reported amounts of assets and liabilities at the date of
the financial statements and the reported amounts of income and expenses
during the reporting period. Actual results could differ from those
estimates.
VALUATION OF INVESTMENTS:
Investments of the money market funds are valued at either amortized cost,
which approximates market value, or at original cost, which when combined
with accrued interest approximates market value. Discount or premium is
amortized on a ratable basis to the maturity of the security. In addition,
the money market funds may not (a) purchase any instrument with a remaining
maturity greater than 397 days (thirteen months) unless such instrument is
subject to a demand feature, or (b) maintain a dollar-weighted average
maturity which exceeds 90 days.
Investments in common and preferred stocks, corporate bonds, convertible
bonds, commercial paper, U.S. Government securities and securities of U.S.
Government agencies of the variable net asset value funds and the dynamic
allocation series are valued at their market values determined on the basis
of the latest available bid prices in the principal market (closing sales
prices if the principal market is an exchange) in which such securities are
normally traded. Securities, including restricted securities, for which
market quotations are not readily available, are valued at fair market value
under the supervision of the Trust's Board of Trustees. The differences
between the amortized cost and market values of investments held by the
Continued
-89-
<PAGE> 92
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1996
variable net asset value funds and dynamic allocation series, are reflected as
either unrealized appreciation or depreciation.
SECURITY TRANSACTIONS AND RELATED INCOME:
Security transactions are accounted for on the date the security is purchased
or sold (trade date). Interest income is recognized on the accrual basis. The
Funds amortize premiums and accrete discounts on purchases of securities on
the same basis for both financial reporting and federal income tax purposes.
Dividend income is recorded on the ex-dividend date, except for certain
dividends from foreign securities which are recorded as soon as the Fund is
informed of the ex-dividend date. Gains or losses realized on sales of
securities are determined using the identified cost basis.
FOREIGN CURRENCY TRANSLATION:
The market value of investment securities, other assets and liabilities of
the International Opportunities Fund denominated in a foreign currency are
translated into U.S. dollars at the current exchange rate. Purchases and
sales of securities, income receipts and expense payments are translated into
U.S. dollars at the exchange rate on the dates of the transactions.
The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations
are included with the net realized and unrealized gain or loss from
investments.
Reported net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, currency
gains or losses realized between the trade and settlement dates on securities
transactions, the difference between the amounts of dividends, interest, and
foreign withholding taxes recorded on the Fund's books, and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains and losses arise from changes in the value of assets and
liabilities other than investments in securities at fiscal year end,
resulting from changes in the exchange rate.
FORWARD CURRENCY CONTRACTS:
The International Opportunities Fund may enter into forward currency exchange
contracts for the purchase or sale of specific foreign currency at a fixed
price on a future date. Risks may arise upon entering these contracts from
the potential inability of counterparties to meet the terms of their
contracts and from unanticipated movements in the value of a foreign currency
relative to the U.S. dollar. The Fund will enter into forward contracts as a
hedge against specific transactions or portfolio positions to protect against
adverse currency movements. The forward foreign currency exchange contracts
are adjusted by the daily exchange rate of the underlying currency and any
gains or losses are recorded for financial statement purposes as unrealized
until the contract settlement date, at which time the Fund records a realized
gain or loss equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed.
Continued
-90-
<PAGE> 93
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1996
REPURCHASE AGREEMENTS:
The Funds may enter into repurchase agreements with member banks of the
Federal Reserve System and with broker/dealers which the Trust's investment
adviser deems creditworthy under guidelines approved by the Board of
Trustees, subject to the seller's agreement to repurchase such securities at
a mutually agreed-upon date and price. The repurchase price generally equals
the price paid by a Fund plus interest negotiated on the basis of current
short-term rates, which may be more or less than the rate on the underlying
portfolio securities. The seller under a repurchase agreement, is required to
pledge securities as collateral pursuant to the agreement at not less than
102% of the repurchase price (including accrued interest). Securities subject
to repurchase agreements are held by each Fund's custodian or another
qualified custodian or in the Federal Reserve/Treasury book-entry system.
Repurchase agreements are considered to be loans by a Fund under the 1940
Act.
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income are declared daily and paid monthly
for the money market funds. Distributions from net investment income are
declared and paid monthly for the Intermediate Bond Fund and the Diversified
Bond Fund. Distributions from net investment income are declared and paid
quarterly for the Small Companies Value Fund, the Large Companies Value Fund,
the Optimized Stock Fund, the International Opportunities Fund, the Allocated
Conservative Fund, the Allocated Balanced Fund, the Allocated Growth Fund and
the Allocated Aggressive Fund. Net realized capital gains, if any, are
declared and distributed annually for all Funds.
Distributions from net investment income and from net realized capital gains
are determined in accordance with income tax regulations which may differ
from generally accepted accounting principles. These differences are
primarily due to differing treatments of foreign currency transactions and
deferrals of certain losses.
FEDERAL INCOME TAXES:
It is the policy of each of the Funds to qualify as a regulated investment
company by complying with the provisions available to certain investment
companies, as defined in applicable sections of the Internal Revenue Code,
and by making distributions of net investment income and net realized capital
gains sufficient to relieve it from all, or substantially all, federal income
taxes. Accordingly, no provision for federal income tax is required in the
financial statements.
DELAYED DELIVERY TRANSACTIONS:
Any of the Funds may purchase securities on a when issued or delayed delivery
basis and sell securities on a delayed delivery basis. These transactions
involve a commitment by a Fund to purchase or sell securities for a
predetermined price or yield with payment and delivery taking place more than
seven days in the future, or after a period longer than the customary
settlement period for that type of security. No interest will be earned by a
fund on such purchases until the securities are delivered; however, the
market value may change prior
Continued
-91-
<PAGE> 94
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1996
to delivery. There were no such commitments included in any Fund's schedule of
portfolio investments at July 31, 1996.
OTHER:
Expenses that are directly related to one of the Funds are charged directly
to that Fund and are allocated to each class of shares based on the relative
net assets of each class, except 12b-1 fees are allocated only to Class A
shares, Class C shares or Class Q shares, and Shareholder service fees are
allocated only to Class Y shares. Other operating expenses of the Trust are
prorated to the Funds on the basis of relative net assets.
3. PURCHASES AND SALES OF SECURITIES:
Purchases and sales of securities (excluding short-term securities) for the
year ended July 31, 1996 are as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ ------------
<S> <C> <C>
Intermediate Bond Fund........................................ $115,178,070 $ 93,763,811
Diversified Bond Fund......................................... $150,589,774 $ 62,028,853
Small Companies Value Fund.................................... $140,311,525 $ 86,561,854
Large Companies Value Fund.................................... $ 48,970,470 $ 34,376,882
Optimized Stock Fund.......................................... $155,407,983 $105,020,059
International Opportunities Fund.............................. $ 90,405,705 $ 6,213,896
</TABLE>
Purchases and sales of securities (excluding short-term securities) for the
period from May 1, 1996 (commencement of operations) through July 31, 1996
are as follows:
<TABLE>
<S> <C> <C>
Allocated Conservative Fund................................... $ 7,714,749 $ 205,752
Allocated Balanced Fund....................................... $ 39,861,382 $ 1,276,421
Allocated Growth Fund......................................... $ 11,280,275 $ 372,174
Allocated Aggressive Fund..................................... $ 9,564,832 $ 1,216,360
</TABLE>
Continued
-92-
<PAGE> 95
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1996
4. CAPITAL SHARE TRANSACTIONS:
<TABLE>
<CAPTION>
U.S. TREASURY TAX-FREE
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
---------------------------------- -------------------------------- --------------------------------
AUGUST 1, 1994 JANUARY 11, 1995 JANUARY 9, 1995
YEAR ENDED TO YEAR ENDED TO YEAR ENDED TO
JULY 31, 1996 JULY 31, 1995(B) JULY 31, 1996 JULY 31, 1995(A) JULY 31, 1996 JULY 31, 1995(A)
--------------- ---------------- ------------- ---------------- ------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL
TRANSACTIONS:
CLASS A SHARES:
Proceeds from
shares issued... $ 444,512,914 $ 544,555,934 $ 182,756,923 $150,979,520 $ 64,492,744 $ 68,940,405
Dividends
reinvested...... 10,674,201 6,145,653 3,897,686 1,514,316 991,188 515,705
Cost of shares
redeemed........ (440,045,094) (334,023,040) (170,321,093) (79,070,871) (68,911,030 ) (35,887,283)
--------------- ------------- ------------- ------------ ------------ ------------
Net increase
(decrease)--Class
A Shares........ $ 15,142,021 $ 216,678,547 $ 16,333,516 $ 73,422,965 $ (3,427,098 ) $ 33,568,827
=============== ============= ============= ============ ============ ============
CLASS Y SHARES:
Proceeds from
shares issued... $ 337,817,323 $ 206,644,035 $ 4,244,114 $ 2,187,762 $ 3,950,136 $ 13,290
Dividends
reinvested...... 7,661 655 711 9,943 502 216
Cost of shares
redeemed........ (303,841,055) (140,160,495) (3,937,660) (2,184,075) (3,241,089 ) --
--------------- ------------- ------------- ------------ ------------ ------------
Net
increase--Class
Y Shares........ $ 33,983,929 $ 66,484,195 $ 307,165 $ 13,630 $ 709,549 $ 13,506
=============== ============= ============= ============ ============ ============
CLASS Q SHARES:
Proceeds from
shares issued... $ 1,146,443,973 $ 248,319,930 $ 155,622,865 $ 20,761,722 $ 26,681,957 $ 4,741,542
Dividends
reinvested...... 4,382,109 870,929 1,253,472 96,900 60,852 12,857
Cost of shares
redeemed........ (1,091,816,368) (193,844,941) (133,308,321) (11,199,528) (24,820,752 ) (3,504,414)
--------------- ------------- ------------- ------------ ------------ ------------
Net
increase--Class
Q Shares........ $ 59,009,714 $ 55,345,918 $ 23,568,016 $ 9,659,094 $ 1,922,057 $ 1,249,985
=============== ============= ============= ============ ============ ============
SHARE TRANSACTIONS:
CLASS A SHARES:
Issued............ 444,512,914 544,555,934 182,756,923 150,979,520 64,492,744 68,940,405
Reinvested........ 10,674,201 6,145,653 3,897,686 1,514,316 991,188 515,705
Redeemed.......... (440,045,094) (334,023,040) (170,321,093) (79,070,871) (68,911,030 ) (35,887,283)
--------------- ------------- ------------- ------------ ------------ ------------
Net
increase(decrease)--Class
A Shares........ 15,142,021 216,678,547 16,333,516 73,422,965 (3,427,098 ) 33,568,827
=============== ============= ============= ============ ============ ============
CLASS Y SHARES:
Issued............ 337,817,323 206,644,035 4,244,114 2,187,762 3,950,136 13,290
Reinvested........ 7,661 655 711 9,943 502 216
Redeemed.......... (303,841,055) (140,160,495) (3,937,660) (2,184,075) (3,241,089 ) --
--------------- ------------- ------------- ------------ ------------ ------------
Net
increase--Class
Y Shares........ 33,983,929 66,484,195 307,165 13,630 709,549 13,506
=============== ============= ============= ============ ============ ============
CLASS Q SHARES:
Issued............ 1,146,443,973 248,319,930 155,622,865 20,761,722 26,681,957 4,741,542
Reinvested........ 4,382,109 870,929 1,253,472 96,900 60,852 12,857
Redeemed.......... (1,091,816,368) (193,844,941) (133,308,321) (11,199,528) (24,820,752 ) (3,504,414)
--------------- ------------- ------------- ------------ ------------ ------------
Net
increase--Class
Q Shares........ 59,009,714 55,345,918 23,568,016 9,659,094 1,922,057 1,249,985
=============== ============= ============= ============ ============ ============
</TABLE>
- ---------
(a) Period from commencement of operations.
(b) Period from commencement of operations for Class A and Class Y Shares.
Commencement of operations for Class Q Shares was January 10, 1995.
Continued
-93-
<PAGE> 96
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1996
4. CAPITAL SHARE TRANSACTIONS, CONTINUED
<TABLE>
<CAPTION>
INTERMEDIATE BOND FUND DIVERSIFIED BOND FUND SMALL COMPANIES VALUE FUND
-------------------------------- -------------------------------- --------------------------------
AUGUST 1, 1994 MAY 2, 1995 AUGUST 1, 1994
YEAR ENDED TO YEAR ENDED TO YEAR ENDED TO
JULY 31, 1996 JULY 31, 1995(A) JULY 31, 1996 JULY 31, 1995(A) JULY 31, 1996 JULY 31, 1995(A)
------------- ---------------- ------------- ---------------- ------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASS A SHARES:
Proceeds from shares
issued............ $ 468,264 $ 374,102 $ 319,488 $ 10 $ 8,734,542 $ 1,089,178
Dividends
reinvested........ 28,482 12,070 7,815 -- 278,166 5,250
Cost of shares
redeemed.......... (278,948 ) (11,617) (7,252 ) -- (1,346,500 ) (44,459)
------------ ------------- ------------ ----------- ------------ -------------
Net increase--Class
A Shares.......... $ 217,798 $ 374,555 $ 320,051 $ 10 $ 7,666,208 $ 1,049,969
============ ============= ============ =========== ============ =============
CLASS Y SHARES:
Proceeds from shares
issued............ $ 63,922,643 $ 286,156,286 $ 91,218,940 $ 95,041,010 $117,310,514 $198,104,448
Dividends
reinvested........ 8,007,605 12,454,777 9,024,800 1,211,429 18,872,436 2,658,213
Cost of shares
redeemed.......... (52,698,051 ) (159,374,920) (11,304,575 ) -- (61,655,821 ) (42,345,409)
------------ ------------- ------------ ----------- ------------ -------------
Net increase--Class
Y Shares.......... $ 19,232,197 $ 139,236,143 $ 88,939,165 $ 96,252,439 $ 74,527,129 $158,417,252
============ ============= ============ =========== ============ =============
CLASS C SHARES:
Proceeds from shares
issued............ $ 31,389 $ 134,398 $ 9,129 $ 10 $ 932,486 $ 261,667
Dividends
reinvested........ 5,799 4,882 73 -- 52,781 1,314
Cost of shares
redeemed.......... (60,283 ) (10,000) -- -- (90,439 ) (5,061)
------------ ------------- ------------ ----------- ------------ -------------
Net increase
(decrease)--Class
C Shares.......... $ (23,095 ) $ 129,280 $ 9,202 $ 10 $ 894,828 $ 257,920
============ ============= ============ =========== ============ =============
SHARE TRANSACTIONS:
CLASS A SHARES:
Issued.............. 46,452 37,785 31,704 1 627,722 98,380
Reinvested.......... 2,833 1,226 778 -- 21,595 494
Redeemed............ (27,997 ) (1,161) (720 ) -- (97,404 ) (3,890)
------------ ------------- ------------ ----------- ------------ -------------
Net increase--Class
A Shares.......... 21,288 37,850 31,762 1 551,913 94,984
============ ============= ============ =========== ============ =============
CLASS Y SHARES:
Issued.............. 6,277,182 28,671,996 8,867,817 9,499,714 8,469,326 19,456,890
Reinvested.......... 787,648 1,260,202 874,181 116,790 1,468,821 254,713
Redeemed............ (5,186,990 ) (16,008,169) (1,107,314 ) -- (4,421,271 ) (3,896,770)
------------ ------------- ------------ ----------- ------------ -------------
Net increase--Class
Y Shares.......... 1,877,840 13,924,029 8,634,684 9,616,504 5,516,876 15,814,833
============ ============= ============ =========== ============ =============
CLASS C SHARES:
Issued.............. 3,129 13,861 969 1 67,990 24,013
Reinvested.......... 581 500 8 -- 4,166 128
Redeemed............ (5,906 ) (1,004) -- -- (6,763 ) (403)
------------ ------------- ------------ ----------- ------------ -------------
Net increase
(decrease)--Class
C Shares.......... (2,196 ) 13,357 977 1 65,393 23,738
============ ============= ============ =========== ============ =============
</TABLE>
- ---------
(a) Period from commencement of operations.
Continued
-94-
<PAGE> 97
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1996
4. CAPITAL SHARE TRANSACTIONS, CONTINUED
<TABLE>
<CAPTION>
LARGE COMPANIES INTERNATIONAL
VALUE FUND OPTIMIZED STOCK FUND OPPORTUNITIES FUND
-------------------------------- -------------------------------- --------------------------------
AUGUST 1, 1994 MAY 2, 1995 JULY 3, 1995
YEAR ENDED TO YEAR ENDED TO YEAR ENDED TO
JULY 31, 1996 JULY 31, 1995(A) JULY 31, 1996 JULY 31, 1995(A) JULY 31, 1996 JULY 31, 1995(A)
------------- ---------------- ------------- ---------------- ------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASS A SHARES:
Proceeds from shares
issued............ $ 3,958,952 $ 953,774 $ 1,222,446 $ 33,973 $ 2,815,117 $ 19,864
Dividends
reinvested........ 163,883 6,738 9,227 -- 7,129 --
Cost of shares
redeemed.......... (377,056 ) (22,511) (53,231 ) -- (920,350 ) --
------------ ------------- ------------ ------------ ------------ -----------
Net increase--Class
A Shares.......... $ 3,745,779 $ 938,001 $ 1,178,442 $ 33,973 $ 1,901,896 $ 19,864
============ ============= ============ ============ ============ ===========
CLASS Y SHARES:
Proceeds from shares
issued............ $ 47,212,764 $138,714,515 $ 68,724,893 $135,931,999 $ 90,541,293 $ 57,478,223
Dividends
reinvested........ 9,349,993 2,128,654 5,756,933 303,570 461,408 --
Cost of shares
redeemed.......... (40,083,973 ) (62,354,448) (21,810,924 ) (207,881) (10,494,579 ) (12,300)
------------ ------------- ------------ ------------ ------------ -----------
Net increase--Class
Y Shares.......... $ 16,478,784 $ 78,488,721 $ 52,670,902 $136,027,688 $ 80,508,122 $ 57,465,923
============ ============= ============ ============ ============ ===========
CLASS C SHARES:
Proceeds from shares
issued............ $ 439,893 $ 232,652 $ 72,298 $ 18,873 $ 18,591 $ 10
Dividends
reinvested........ 32,959 2,124 1,519 19 20 --
Cost of shares
redeemed.......... (87,269 ) (3,443) (2,756 ) -- 0 --
------------ ------------- ------------ ------------ ------------ -----------
Net increase--Class
C Shares.......... $ 385,583 $ 231,333 $ 71,061 $ 18,892 $ 18,611 $ 10
============ ============= ============ ============ ============ ===========
SHARE TRANSACTIONS:
CLASS A SHARES:
Issued.............. 320,635 88,093 100,759 3,194 273,252 1,916
Reinvested.......... 14,377 652 774 -- 674 --
Redeemed............ (30,203 ) (2,173) (4,335 ) -- (89,117 ) --
------------ ------------- ------------ ------------ ------------ -----------
Net increase--Class
A Shares.......... 304,809 86,572 97,198 3,194 184,809 1,916
============ ============= ============ ============ ============ ===========
CLASS Y SHARES:
Issued.............. 3,808,985 13,645,791 5,785,352 13,578,302 8,541,811 5,733,331
Reinvested.......... 821,751 207,173 492,000 29,588 43,820 --
Redeemed............ (3,228,601 ) (5,832,431) (1,799,096 ) (19,190) (983,990 ) (1,188)
------------ ------------- ------------ ------------ ------------ -----------
Net increase--Class
Y Shares.......... 1,402,135 8,020,533 4,478,256 13,588,700 7,601,641 5,732,143
============ ============= ============ ============ ============ ===========
CLASS C SHARES:
Issued.............. 36,992 22,592 6,079 1,838 1,747 1
Reinvested.......... 2,947 207 129 2 2 --
Redeemed............ (7,195 ) (289) (232 ) -- -- --
------------ ------------- ------------ ------------ ------------ -----------
Net increase--Class
C Shares.......... 32,744 22,510 5,976 1,840 1,749 1
============ ============= ============ ============ ============ ===========
</TABLE>
- ---------
(a) Period from commencement of operations.
Continued
-95-
<PAGE> 98
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1996
4. CAPITAL SHARE TRANSACTIONS, CONTINUED
<TABLE>
<CAPTION>
ALLOCATED ALLOCATED ALLOCATED ALLOCATED
CONSERVATIVE BALANCED GROWTH AGGRESSIVE
FUND FUND FUND FUND
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
FROM MAY 1, FROM MAY 1, FROM MAY 1, FROM MAY 1,
1996 THROUGH 1996 THROUGH 1996 THROUGH 1996 THROUGH
JULY 31, 1996(A) JULY 31, 1996(A) JULY 31, 1996(A) JULY 31, 1996(A)
---------------- ---------------- ---------------- ----------------
CAPITAL TRANSACTIONS:
CLASS A SHARES:
Proceeds from shares issued...................... $ 10 $ 10 $ 10 $ 2,010
Dividends reinvested............................. -- -- -- 5
---------- ----------- ----------- -----------
Net increase--Class A Shares..................... $ 10 $ 10 $ 10 $ 2,015
========== =========== =========== ===========
CLASS Y SHARES:
Proceeds from shares issued...................... $7,728,016 $ 39,938,929 $ 11,303,541 $ 9,803,652
Dividends reinvested............................. -- 77,746 1,099 10,390
Cost of shares redeemed.......................... (109,914) (750,056) (162,459) (1,311,747)
---------- ----------- ----------- -----------
Net increase--Class Y Shares..................... $7,618,102 $ 39,266,619 $ 11,142,181 $ 8,502,295
========== =========== =========== ===========
SHARE TRANSACTIONS:
CLASS A SHARES:
Issued........................................... 1 1 1 196
---------- ----------- ----------- -----------
Net increase--Class A Shares..................... 1 1 1 196
========== =========== =========== ===========
CLASS Y SHARES:
Issued........................................... 771,455 3,995,653 1,128,551 984,956
Reinvested....................................... -- 7,698 107 1,012
Redeemed......................................... (11,098) (76,460) (16,968) (131,480)
---------- ----------- ----------- -----------
Net increase--Class Y Shares..................... 760,357 3,926,891 1,111,690 854,488
========== =========== =========== ===========
</TABLE>
- ---------
(a) Period from commencement of operations.
5. RELATED PARTY TRANSACTIONS:
Qualivest Capital Management, Inc. ("Qualivest") is the investment adviser to
the Trust. Qualivest, a registered investment adviser, is an affiliate of
U.S. Bank, which is a wholly-owned subsidiary of U.S. Bancorp. Under the
terms of the investment advisory agreement with the Trust, Qualivest is
entitled to receive fees from each of the Funds at the following annual rates
of each Fund's average daily net assets: Money Market Fund--0.35%; U.S.
Treasury Money Market Fund--0.35%; Tax-Free Money Market Fund-- 0.35%;
Intermediate Bond Fund--0.60%; Diversified Bond Fund--0.60%; Small Companies
Value Fund-- 0.80%; Large Companies Value Fund--0.75%; Optimized Stock
Fund--0.50%; International Opportunities Fund--0.60%; Allocated Conservative
Fund--0.05%; Allocated Balanced Fund--0.05%; Allocated Growth Fund--0.05%;
and Allocated Aggressive Fund--0.05%.
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS"),
serves the Funds as Administrator. Under the terms of the administration
agreement, BISYS receives a fee from each Fund, computed daily at a rate of
0.13% of the average daily net assets of the Money Market Fund, U.S. Treasury
Money Market Fund, Tax-Exempt Money Market Fund, Intermediate Bond Fund,
Diversified Bond Fund, Small
Continued
-96-
<PAGE> 99
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1996
Companies Value Fund, Large Companies Value Fund, Optimized Stock Fund, and
International Opportunities Fund, and 0.07% of the average daily net assets of
the Allocated Conservative Fund, Allocated Balanced Fund, Allocated Growth Fund,
and the Allocated Aggressive Fund. BISYS also serves as the Funds' distributor
and is entitled to receive commissions on sales of shares of the variable net
asset value funds. For the period ended July 31, 1996, BISYS received $399,529
of commissions earned on sales of shares of the Trust's variable net asset value
funds, of which $359,549 was reallowed to dealers of the Funds' shares,
including $179,011 to affiliates of the Fund. BISYS Fund Services Ohio,
Inc.("BISYS Ohio") serves the Funds as transfer agent and mutual fund
accountant.
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services, an Ohio
limited partnership, and BISYS Ohio are subsidiaries of The BISYS Group, Inc.
The Trust has adopted a Class A Distribution and Shareholder Service Plan
(the "Class A Plan"), a Class Q Distribution and Shareholder Service Plan
(the "Class Q Plan") and a Class C Distribution and Shareholder Service Plan
(the "Class C Plan"), pursuant to Rule 12b-1 under the 1940 Act. BISYS may
enter into agreements with banks and their affiliates, and other
institutions, including broker-dealers (each a "Participating Organization")
for providing shareholder services with respect to the Class Y shares. Under
the Class A Plan, the Funds pay or reimburse BISYS, as distributor, a fee not
to exceed 0.40% of the average daily net assets of Class A shares of the
money market funds and not to exceed 0.25% of the average daily net assets of
Class A shares of the variable net asset value funds. Under the Class Q Plan,
the money market funds pay or reimburse BISYS, as distributor, a fee not to
exceed 0.25% of the average daily net assets of Class Q shares of a Fund.
Under the Class C Plan, the variable net asset value funds pay or reimburse
BISYS, as distributor, (a) a distribution fee in an amount not to exceed, on
an annual basis, 0.75% of the average daily net assets of Class C shares of a
Fund, and (b) a service fee in an amount not to exceed, on an annual basis,
0.25% of the average daily net assets of the Class C shares of a Fund. These
fees may be used by BISYS to pay banks, including affiliates of the
investment adviser, broker-dealers and other institutions, or to reimburse
BISYS or its affiliates for administration, distribution and shareholder
service assistance in connection with the distribution of Fund shares. Under
a shareholder service plan for Class Y Shares, Participating Organizations
may be compensated at the annual rate of up to 0.25% of the average daily net
assets of certain shares of the Class Y shares. As of July 31, 1996 there
were no Class Y shareholder service fees charged to the Funds.
U. S. Bank (the "Custodian") provides custody services to the Funds, except
for the International Opportunities Fund which uses an independent custodian.
Under the terms of the custody agreement with the Trust, the Custodian is
entitled to receive fees based on a percentage of the average daily net
assets of each Fund of the Trust, as well as reimbursement of certain
out-of-pocket expenses.
Certain trustees and officers of the Trust are affiliated with BISYS or with
U.S. Bancorp. Such persons are not paid any fees directly by the Funds for
serving in those capacities.
Fees may be voluntarily reduced to assist the Funds in maintaining
competitive expense ratios. Such fees are permanently waived.
Continued
-97-
<PAGE> 100
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1996
Information regarding these transactions is as follows for the period ended
July 31, 1996:
<TABLE>
<CAPTION>
U.S.
TREASURY TAX-FREE
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Voluntary fee reductions........................................ $400,540 $395,220 $130,991
ADMINISTRATION FEES:
Voluntary fee reductions........................................ $ 4,124
DISTRIBUTION & SERVICE FEES:
CLASS Q
Voluntary fee reductions........................................ $230,184 $ 14,033
TRANSFER AGENT AND MUTUAL FUND ACCOUNTANT FEES:................... $178,944 $105,190 $101,016
</TABLE>
<TABLE>
<CAPTION>
SMALL
INTERMEDIATE DIVERSIFIED COMPANIES
BOND FUND BOND FUND VALUE FUND
------------ --------- ------------
<S> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Voluntary fee reductions............................................ $224,768 $415,278 $ 1,737
TRANSFER AGENT AND MUTUAL FUND ACCOUNTANT FEES:....................... $126,512 $116,556 $166,112
</TABLE>
<TABLE>
<CAPTION>
LARGE INTERNATIONAL
COMPANIES OPTIMIZED OPPORTUNITIES
VALUE FUND STOCK FUND FUND
---------- ---------- -------------
<S> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Voluntary fee reductions.............................................. $160,684 $383,766 $ 319,060
TRANSFER AGENT AND MUTUAL FUND ACCOUNTANT FEES:......................... $112,519 $148,111 $ 201,644
</TABLE>
Continued
-98-
<PAGE> 101
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1996
<TABLE>
<CAPTION>
ALLOCATED ALLOCATED ALLOCATED ALLOCATED
CONSERVATIVE BALANCED GROWTH AGGRESSIVE
FUND(A) FUND(A) FUND(A) FUND(A)
------------ --------- --------- ----------
<S> <C> <C> <C> <C>
TRANSFER AGENT AND MUTUAL FUND ACCOUNTANT FEES:............... $ 371 $ 1,953 $ 475 $ 356
</TABLE>
- ---------
(a) For the period from commencement of operations, May 1, 1996, through July
31, 1996.
6. ELIGIBLE DISTRIBUTIONS (UNAUDITED):
The Trust designates the following eligible distributions for the dividends
received deduction for corporations:
<TABLE>
<CAPTION>
SMALL LARGE
COMPANIES COMPANIES OPTIMIZED
VALUE FUND VALUE FUND STOCK FUND
---------- ---------- ----------
<S> <C> <C> <C>
Dividend Income.......................................................... $2,728,455 $2,310,719 $4,278,168
Dividend Income Per Share--Class A....................................... 0.0282 0.1540 0.1844
Dividend Income Per Share--Class Y....................................... 0.0419 0.1681 0.1967
Dividend Income Per Share--Class C....................................... 0.0031 0.1058 0.1383
</TABLE>
<TABLE>
<CAPTION>
ALLOCATED ALLOCATED
CONSERVATIVE BALANCED
FUND FUND
------------ ---------
<S> <C> <C>
Dividend Income....................................................................... $3,581 $34,692
Dividend Income Per Share--Class A.................................................... 0.0018 0.0044
Dividend Income Per Share--Class Y.................................................... 0.0018 0.0044
</TABLE>
<TABLE>
<CAPTION>
ALLOCATED ALLOCATED
GROWTH AGGRESSIVE
FUND FUND
--------- ----------
<S> <C> <C>
Dividend Income......................................................................... $ 9,103 $ 8,553
Dividend Income Per Share--Class A...................................................... 0.0073 0.0129
Dividend Income Per Share--Class Y...................................................... 0.0073 0.0130
</TABLE>
The International Opportunities Fund elects to pass on the benefits of the
foreign tax credit to its shareholders for the year ended July 31, 1996. The
following information is presented with respect to the election:
<TABLE>
<S> <C>
Gross Income from Foreign Countries................................................................ $2,454,999
Gross Income from Foreign Countries Per Share...................................................... 0.182
Income Taxes Paid to Foreign Countries............................................................. $ 447,171
Income Taxes Paid to Foreign Countries Per Share................................................... 0.033
</TABLE>
Continued
-99-
<PAGE> 102
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1996
7. EXEMPT-INTEREST INCOME DESIGNATION (UNAUDITED):
The Trust designates the following exempt-interest income for the taxable
year ended July 31, 1996:
<TABLE>
<CAPTION>
TAX-FREE
MONEY MARKET FUND
-----------------
<S> <C>
Exempt Interest Distributions............................................................... $ 1,042,039
Exempt Distributions Per Share--Class A..................................................... 0.0277
Exempt Distributions Per Share--Class Y..................................................... 0.0317
Exempt Distributions Per Share--Class Q..................................................... 0.0292
</TABLE>
The percentage break-down of the exempt-interest by state for the Tax-Free
Money Market Fund's taxable year ended July 31, 1996 was as follows:
<TABLE>
<S> <C>
Alabama.............................................................................................. 3.14%
Alaska............................................................................................... 3.63%
Arizona.............................................................................................. 1.66%
California........................................................................................... 6.45%
Delaware............................................................................................. 0.09%
Florida.............................................................................................. 4.46%
Georgia.............................................................................................. 2.60%
Illinois............................................................................................. 3.00%
Louisiana............................................................................................ 1.78%
Maryland............................................................................................. 3.34%
Massachusetts........................................................................................ 1.91%
Michigan............................................................................................. 6.53%
Minnesota............................................................................................ 9.59%
Missouri............................................................................................. 2.10%
Nebraska............................................................................................. 3.37%
Nevada............................................................................................... 3.26%
New Mexico........................................................................................... 0.24%
New York............................................................................................. 9.74%
North Carolina....................................................................................... 2.14%
Oklahoma............................................................................................. 3.12%
Oregon............................................................................................... 2.83%
Rhode Island......................................................................................... 0.53%
South Carolina....................................................................................... 2.14%
Tennessee............................................................................................ 0.77%
Texas................................................................................................ 8.92%
Virginia............................................................................................. 4.43%
Washington........................................................................................... 2.55%
Wisconsin............................................................................................ 2.73%
Wyoming.............................................................................................. 2.95%
-------
100.00%
=======
</TABLE>
-100-
<PAGE> 103
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MONEY MARKET FUND
----------------------------------------------------------------------
JANUARY 10,
1995 TO
FOR THE YEAR ENDED AUGUST 1, 1994 TO JULY 31,
JULY 31, 1996 JULY 31, 1995(A) 1995(A)
-------------------------------- ------------------- -----------
CLASS A CLASS Y CLASS Q CLASS A CLASS Y CLASS Q
-------- -------- -------- -------- ------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- ------- -----------
Investment Activities
Net investment income........................ 0.047 0.051 0.051 0.049 0.053 0.031
-------- -------- -------- -------- ------- -----------
Distributions
Net investment income........................ (0.047) (0.051) (0.051) (0.049) (0.053) (0.031)
-------- -------- -------- -------- ------- -----------
NET ASSET VALUE, END OF PERIOD................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======= ==========
Total Return................................... 4.79% 5.20% 5.20% 4.97% 5.40% 3.13%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).............. $231,819 $100,468 $114,358 $216,679 $66,484 $55,346
Ratio of expenses to average net assets........ 0.91% 0.51% 0.51% 0.79% 0.38% 0.54%(c)
Ratio of net investment income to average net
assets....................................... 4.68% 5.06% 5.04% 5.09% 5.31% 5.57%(c)
Ratio of expenses to average net assets*....... 1.01% 0.61% 0.86% 1.04% 0.67% 0.90%(c)
Ratio of net investment income to average net
assets*...................................... 4.58% 4.96% 4.69% 4.83% 5.02% 5.22%(c)
</TABLE>
- ---------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
-101-
<PAGE> 104
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. TREASURY MONEY MARKET FUND
--------------------------------------------------------------
FOR THE YEAR ENDED JANUARY 11, 1995 TO
JULY 31, 1996 JULY 31, 1995(A)
----------------------------- -----------------------------
CLASS A CLASS Y CLASS Q CLASS A CLASS Y CLASS Q
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD.............................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- ------- -------
Investment Activities
Net investment income............... 0.046 0.050 0.048 0.028 0.030 0.029
------- ------- ------- ------- ------- -------
Distributions
Net investment income............... (0.046) (0.050) (0.048) (0.028) (0.030) (0.029)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD........ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= ======= =======
Total Return.......................... 4.74% 5.16% 4.95% 2.79%(b) 3.02%(b) 2.90%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)..... $89,756 $ 321 $33,227 $73,423 $ 14 $ 9,659
Ratio of expenses to average net
assets.............................. 0.72% 0.31% 0.51% 0.81%(c) 0.40%(c) 0.61%(c)
Ratio of net investment income to
average net assets.................. 4.63% 4.86% 4.81% 5.02%(c) 5.56%(c) 5.25%(c)
Ratio of expenses to average net
assets*............................. 1.07% 0.66% 0.91% 1.17%(c) 0.75%(c) 1.01%(c)
Ratio of net investment income to
average net assets*................. 4.28% 4.51% 4.41% 4.66%(c) 5.21%(c) 4.86%(c)
</TABLE>
- ---------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
-102-
<PAGE> 105
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TAX-FREE MONEY MARKET FUND
------------------------------------------------------------
FOR THE YEAR ENDED JANUARY 9, 1995 TO
JULY 31, 1996 JULY 31, 1995(A)
--------------------------- -----------------------------
CLASS A CLASS Y CLASS Q CLASS A CLASS Y CLASS Q
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD..... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- ------- -------
Investment Activities
Net investment income.................. 0.028 0.032 0.029 0.017 0.019 0.017
------- ------- ------- ------- ------- -------
Distributions
Net investment income.................. (0.028) (0.032) (0.029) (0.017) (0.019) (0.017)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD........... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= ======= =======
Total Return............................. 2.81% 3.22% 2.96% 1.66%(b) 1.88%(b) 1.73%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)........ $30,143 $ 723 $ 3,172 $33,569 $ 14 $ 1,250
Ratio of expenses to average net
assets................................. 0.89% 0.41% 0.72% 1.00%(c) 0.59%(c) 0.85%(c)
Ratio of net investment income to average
net
assets................................. 2.78% 2.92% 2.88% 2.98%(c) 3.38%(c) 3.19%(c)
Ratio of expenses to average net
assets*................................ 1.25% 0.79% 1.08% 1.36%(c) 0.94%(c) 1.21%(c)
Ratio of net investment income to average
net assets*............................ 2.42% 2.54% 2.52% 2.61%(c) 3.03%(c) 2.83%(c)
</TABLE>
- ---------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
-103-
<PAGE> 106
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERMEDIATE BOND FUND
----------------------------------------------------------------
FOR THE YEAR ENDED AUGUST 1, 1994 TO
JULY 31, 1996 JULY 31, 1995(A)
------------------------------ ------------------------------
CLASS A CLASS Y CLASS C CLASS A CLASS Y CLASS C
------- -------- ------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................... $10.06 $ 10.16 $ 9.96 $10.00 $ 10.00 $10.00
------- -------- ------- ------- -------- -------
Investment Activities
Net investment income................................ 0.55 0.56 0.44 0.53 0.64 0.46
Net realized and unrealized gains (losses) from
investments........................................ (0.16 ) (0.15) (0.10 ) 0.11 0.14 0.05
------- -------- ------- ------- -------- -------
Total from Investment Activities............... 0.39 0.41 0.34 0.64 0.78 0.51
------- -------- ------- ------- -------- -------
Distributions
Net investment income................................ (0.54 ) (0.56) (0.46 ) (0.58 ) (0.62) (0.55 )
------- -------- ------- ------- -------- -------
NET ASSET VALUE, END OF PERIOD......................... $ 9.91 $ 10.01 $ 9.84 $10.06 $ 10.16 $ 9.96
======= ======== ======= ======= ======== =======
Total Return--excluding sales and redemption charges... 3.94% 4.15% 3.49% 6.67% 8.09% 5.42%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)...................... $ 586 $158,174 $ 110 $ 381 $141,399 $ 133
Ratio of expenses to average net assets................ 1.01% 0.76% 1.76% 0.80% 0.41% 1.59%
Ratio of net investment income to average net assets... 5.31% 5.57% 4.58% 5.94% 6.31% 5.18%
Ratio of expenses to average net assets*............... 1.16% 0.91% 1.91% 1.17% 0.91% 1.92%
Ratio of net investment income to average net
assets*.............................................. 5.16% 5.42% 4.43% 5.57% 5.81% 4.85%
Portfolio Turnover(b).................................. 66% 66% 66% 107% 107% 107%
</TABLE>
- ---------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
See notes to financial statements.
-104-
<PAGE> 107
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
DIVERSIFIED BOND FUND
-------------------------------------------------------------
FOR THE YEAR ENDED MAY 2, 1995 TO
JULY 31, 1996 JULY 31, 1995(A)
---------------------------- -----------------------------
CLASS A CLASS Y CLASS C CLASS A CLASS Y CLASS C
------- -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD..... $10.18 $ 10.33 $10.22 $10.00 $ 10.00 $10.00
------- -------- ------- ------- ------- -------
Investment Activities
Net investment income.................. 0.55 0.58 0.48 0.01 0.15 0.01
Net realized and unrealized gains
(losses) from investments............ (0.16 ) (0.13) (0.60 ) 0.30 0.31 0.33
------- -------- ------- ------- ------- -------
Total from Investment
Activities..................... 0.39 0.45 (0.12 ) 0.31 0.46 0.34
------- -------- ------- ------- ------- -------
Distributions
Net investment income.................. (0.55 ) (0.58) (0.50 ) (0.13 ) (0.13) (0.12 )
Net realized gains..................... (0.16 ) (0.16) (0.16 ) -- -- --
------- -------- ------- ------- ------- -------
Total Distributions.............. (0.71 ) (0.74) (0.66 ) (0.13 ) (0.13) (0.12 )
------- -------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD........... $ 9.86 $ 10.04 $ 9.44 $10.18 $ 10.33 $10.22
======= ======== ======= ======= ======= =======
Total Return--excluding sales and
redemption charges..................... 3.79% 4.33% (1.37 )% 3.07%(b) 4.58%(b) 3.35%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)........ $ 313 $183,255 $ 9 ** $99,347 **
Ratio of expenses to average net
assets................................. 0.85% 0.61% 1.58% 0.95%(c) 0.70%(c) 1.70%(c)
Ratio of net investment income to average
net assets............................. 5.48% 5.72% 4.81% 5.66%(c) 5.91%(c) 4.91%(c)
Ratio of expenses to average net
assets*................................ 1.15% 0.91% 1.82% 1.25%(c) 1.00%(c) 2.00%(c)
Ratio of net investment income to average
net assets*............................ 5.18% 5.42% 4.57% 5.36%(c) 5.61%(c) 4.61%(c)
Portfolio Turnover(d).................... 48% 48% 48% 34% 34% 34%
</TABLE>
- ---------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred the ratios would have been as indicated.
** Net assets are less than $1,000.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
See notes to financial statements.
-105-
<PAGE> 108
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SMALL COMPANIES VALUE FUND
-----------------------------------------------------------
FOR THE YEAR ENDED AUGUST 1, 1994 TO
JULY 31, 1996 JULY 31, 1995(A)
---------------------------- ----------------------------
CLASS A CLASS Y CLASS C CLASS A CLASS Y CLASS C
------- -------- ------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.......... $ 13.23 $ 13.26 $ 13.14 $10.00 $ 10.00 $10.00
------- -------- ------- ------- -------- -------
Investment Activities
Net investment income (loss)................ 0.04 0.06 (0.03) 0.09 0.13 (0.03 )
Net realized and unrealized gains from
investments............................... 1.83 1.81 1.74 3.29 3.30 3.29
------- -------- ------- ------- -------- -------
Total from Investment Activities...... 1.87 1.87 1.71 3.38 3.43 3.26
------- -------- ------- ------- -------- -------
Distributions
Net investment income....................... (0.04) (0.06) -- (0.10 ) (0.12) (0.07 )
Net realized gains.......................... (1.11) (1.11) (1.11) (0.05 ) (0.05) (0.05 )
------- -------- ------- ------- -------- -------
Total Distributions................... (1.15) (1.17) (1.11) (0.15 ) (0.17) (0.12 )
------- -------- ------- ------- -------- -------
NET ASSET VALUE, END OF PERIOD................ $ 13.95 $ 13.96 $ 13.74 $13.23 $ 13.26 $13.14
======= ======== ======= ======= ======== =======
Total Return--excluding sales and redemption
charges..................................... 14.93% 14.94% 13.79% 34.29% 34.76% 33.02%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)............. $ 9,022 $297,793 $ 1,225 1,257 $209,626 $ 312
Ratio of expenses to average net assets....... 1.33% 1.08% 2.08% 1.11% 0.60% 1.85%
Ratio of net investment income to average net
assets...................................... 0.14% 0.41% (0.60)% 0.63% 1.20% (0.10 )%
Ratio of expenses to average net assets*...... 1.33% 1.08% 2.08% 1.38% 1.12% 2.13%
Ratio of net investment income to average net
assets*..................................... 0.14% 0.41% (0.60)% 0.36% 0.68% (0.38 )%
Portfolio Turnover(b)......................... 34% 34% 34% 37% 37% 37%
Average commission rate paid(c)............... $0.0398 $ 0.0398 $0.0398
</TABLE>
- ---------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
(c) Represents the dollar amount of commissions paid on Portfolio transactions
divided by the total number of shares purchased and sold for which
commissions were charged and is calculated on the basis of the Portfolio as
a whole without distinguishing between the classes of shares issued.
Disclosure not required for periods prior to fiscal 1996.
See notes to financial statements.
-106-
<PAGE> 109
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LARGE COMPANIES VALUE FUND
---------------------------------------------------------------
FOR THE YEAR ENDED AUGUST 1, 1994 TO
JULY 31, 1996 JULY 31, 1995(A)
------------------------------ -----------------------------
CLASS A CLASS Y CLASS C CLASS A CLASS Y CLASS C
------- -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................... $ 12.20 $ 12.23 $ 12.04 $10.00 $ 10.00 $10.00
------- -------- ------- ------- ------- -------
Investment Activities
Net investment income................................ 0.20 0.21 0.13 0.18 0.24 0.12
Net realized and unrealized gains from investments... 0.71 0.75 0.69 2.23 2.22 2.11
------- -------- ------- ------- ------- -------
Total from Investment Activities............... 0.91 0.96 0.82 2.41 2.46 2.23
------- -------- ------- ------- ------- -------
Distributions
Net investment income................................ (0.19) (0.21) (0.13) (0.18 ) (0.20) (0.16 )
Net realized gains................................... (1.00) (1.00) (1.00) (0.03 ) (0.03) (0.03 )
------- -------- ------- ------- ------- -------
Total Distributions............................ (1.19) (1.21) (1.13) (0.21 ) (0.23) (0.19 )
------- -------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD......................... $ 11.92 $ 11.98 $ 11.73 $12.20 $ 12.23 $12.04
======= ======== ======= ======= ======= =======
Total Return--excluding sales and redemption charges... 8.17% 8.57% 7.46% 24.61% 25.04% 22.78%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)...................... $ 4,666 $112,908 $ 648 $1,056 $98,127 $ 271
Ratio of expenses to average net assets................ 1.18% 0.93% 1.93% 1.04% 0.53% 1.78%
Ratio of net investment income to average net assets... 1.52% 1.77% 0.77% 1.70% 2.19% 0.91%
Ratio of expenses to average net assets*............... 1.33% 1.08% 2.08% 1.38% 1.11% 2.13%
Ratio of net investment income to average net
assets*.............................................. 1.37% 1.62% 0.62% 1.36% 1.61% 0.56%
Portfolio Turnover(b).................................. 35% 35% 35% 48% 48% 48%
Average commission rate paid(c)........................ $0.0574 $ 0.0574 $0.0574
</TABLE>
- ---------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
(c) Represents the dollar amount of commissions paid on Portfolio transactions
divided by the total number of shares purchased and sold for which
commissions were charged and is calculated on the basis of the Portfolio as
a whole without distinguishing between the classes of shares issued.
Disclosure not required for periods prior to fiscal 1996.
See notes to financial statements.
-107-
<PAGE> 110
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OPTIMIZED STOCK FUND
--------------------------------------------------------------
FOR THE YEAR ENDED MAY 2, 1995 TO
JULY 31, 1996 JULY 31, 1995(A)
---------------------------- ------------------------------
CLASS A CLASS Y CLASS C CLASS A CLASS Y CLASS C
------- -------- ------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.... $ 10.94 $ 10.95 $ 10.92 $10.00 $ 10.00 $10.00
------- -------- ------- ------- -------- -------
Investment Activities
Net investment income................. 0.19 0.21 0.11 0.03 0.06 0.03
Net realized and unrealized gains from
investments......................... 1.36 1.37 1.37 0.93 0.91 0.91
------- -------- ------- ------- -------- -------
Total from Investment
Activities.................... 1.55 1.58 1.48 0.96 0.97 0.94
------- -------- ------- ------- -------- -------
Distributions
Net investment income................. (0.19) (0.21) (0.15) (0.02 ) (0.02) (0.02 )
Net realized gains.................... (0.20) (0.20) (0.20) -- -- --
------- -------- ------- ------- -------- -------
Total Distributions............. (0.39) (0.41) (0.35) (0.02 ) (0.02) (0.02 )
------- -------- ------- ------- -------- -------
NET ASSET VALUE, END OF PERIOD.......... $ 12.10 $ 12.12 $ 12.05 $10.94 $ 10.95 $10.92
======= ======== ======= ======= ======== =======
Total Return--excluding sales and
redemption charges.................... 14.36% 14.56% 13.62% 9.64%(b) 9.74%(b) 9.41%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)....... $ 1,214 $219,014 $ 94 $ 35 $148,782 $ 20
Ratio of expenses to average net
assets................................ 0.84% 0.60% 1.59% 0.91%(c) 0.68%(c) 1.68%(c)
Ratio of net investment income to
average net
assets................................ 1.40% 1.76% 0.70% 1.03%(c) 2.38%(c) 1.13%(c)
Ratio of expenses to average net
assets*............................... 1.04% 0.80% 1.79% 1.10%(c) 0.88%(c) 1.88%(c)
Ratio of net investment income to
average net assets*................... 1.20% 1.56% 0.50% 0.85%(c) 2.18%(c) 0.92%(c)
Portfolio Turnover(d)................... 56% 56% 56% 5% 5% 5%
Average commission rate paid(e)......... $0.0351 $ 0.0351 $0.0351
</TABLE>
- ---------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
(e) Represents the dollar amount of commissions paid on Portfolio transactions
divided by the total number of shares purchased and sold for which
commissions were charged and is calculated on the basis of the Portfolio as
a whole without distinguishing between the classes of shares issued.
Disclosure not required for periods prior to fiscal 1996.
See notes to financial statements.
-108-
<PAGE> 111
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERNATIONAL OPPORTUNITIES FUND
-------------------------------------------------------------
FOR THE YEAR ENDED JULY 3, 1995 TO
JULY 31, 1996 JULY 31, 1995(A)
---------------------------- -----------------------------
CLASS A CLASS Y CLASS C CLASS A CLASS Y CLASS C
------- -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD..... $ 10.45 $ 10.48 $ 10.46 $10.00 $ 10.00 $10.00
------- -------- ------- ------- ------- -------
Investment Activities
Net investment income (loss)........... 0.07 0.09 0.03 -- 0.01 (0.01 )
Net realized and unrealized gains from
investments.......................... 0.17 0.18 0.17 0.45 0.47 0.47
------- -------- ------- ------- ------- -------
Total from Investment
Activities..................... 0.24 0.27 0.20 0.45 0.48 0.46
------- -------- ------- ------- ------- -------
Distributions
Net investment income.................. (0.05) (0.06) (0.03) -- -- --
------- -------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD........... $ 10.64 $ 10.69 $ 10.63 $10.45 $ 10.48 $10.46
======= ======== ======= ======= ======= =======
Total Return--excluding sales and
redemption charges..................... 2.29% 2.56% 1.92% 4.50%(b) 4.80%(b) 4.60%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)........ $ 1,986 $142,478 $ 19 $ 20 $60,073 **
Ratio of expenses to average net
assets................................. 1.06% 0.81% 1.78% 1.40%(c) 1.18%(c) 2.18%(c)
Ratio of net investment income to average
net assets............................. 0.84% 1.18% 0.41% 0.23%(c) 1.32%(c) 0.32%(c)
Ratio of expenses to average net
assets*................................ 1.35% 1.10% 2.06% 1.54%(c) 1.39%(c) 2.39%(c)
Ratio of net investment income to average
net assets*............................ 0.55% 0.89% 0.13% 0.09%(c) 1.12%(c) 0.12%(c)
Portfolio Turnover(d).................... 6% 6% 6% 0% 0% 0%
Average commission rate paid(e).......... $0.0221 $ 0.0221 $0.0221
</TABLE>
- ---------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred the ratios would have been as indicated.
** Net assets are less than $1,000.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
(e) Represents the dollar amount of commissions paid on Portfolio transactions
divided by the total number of shares purchased and sold for which
commissions were charged and is calculated on the basis of the Portfolio as
a whole without distinguishing between the classes of shares issued.
Disclosure not required for periods prior to fiscal 1996.
See notes to financial statements.
-109-
<PAGE> 112
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ALLOCATED
CONSERVATIVE FUND
------------------
FROM MAY 1, 1996
TO JULY 31,
1996(A)
------------------
CLASS A CLASS Y
------- -------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................................................. $10.00 $10.00
------- -------
Investment Activities
Net investment income............................................................... 0.10 0.08
Net realized and unrealized (losses) from investments............................... (0.12 ) (0.09 )
------- -------
Total from Investment Activities.............................................. (0.02 ) (0.01 )
------- -------
Distributions
Net investment income............................................................... (0.03 ) (0.03 )
------- -------
NET ASSET VALUE, END OF PERIOD........................................................ $ 9.95 $ 9.96
------- -------
Total Return--excluding sales charge.................................................. (0.18 )%(b) (0.08 )%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)..................................................... $ ** $7,573
Ratio of expenses to average net assets............................................... 0.00%(c) 0.34%(c)
Ratio of net investment income to average net assets.................................. 3.96%(c) 3.77%(c)
Portfolio Turnover(d)................................................................. 3% 3%
</TABLE>
- ---------
** Net assets are less than $1,000.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
See notes to financial statements.
-110-
<PAGE> 113
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ALLOCATED
BALANCED FUND
------------------
FROM MAY 1, 1996
TO JULY 31,
1996(A)
------------------
CLASS A CLASS Y
------- -------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................................................. $10.00 $ 10.00
------- -------
Investment Activities
Net investment income............................................................... 0.08 0.06
Net realized and unrealized (losses) from investments............................... (0.31 ) (0.28)
------- -------
Total from Investment Activities.............................................. (0.23 ) (0.22)
------- -------
Distributions
Net investment income............................................................... (0.03 ) (0.03)
------- -------
NET ASSET VALUE, END OF PERIOD........................................................ $ 9.74 $ 9.75
------- -------
Total Return--excluding sales charge.................................................. (2.31 )%(b) (2.21)%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)..................................................... $ ** $38,283
Ratio of expenses to average net assets............................................... 0.00%(c) 0.22%(c)
Ratio of net investment income to average net assets.................................. 3.20%(c) 2.67%(c)
Portfolio Turnover(d)................................................................. 4% 4%
</TABLE>
- ---------
** Net assets are less than $1,000.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
See notes to financial statements.
-111-
<PAGE> 114
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ALLOCATED
GROWTH FUND
------------------
FROM MAY 1, 1996
TO JULY 31,
1996(A)
------------------
CLASS A CLASS Y
------- -------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................................................. $10.00 $ 10.00
------- -------
Investment Activities
Net investment income............................................................... 0.05 0.04
Net realized and unrealized (losses) from investments............................... (0.28 ) (0.29)
------- -------
Total from Investment Activities.............................................. (0.23 ) (0.25)
------- -------
Distributions
Net investment income............................................................... (0.03 ) (0.03)
------- -------
NET ASSET VALUE, END OF PERIOD........................................................ $ 9.74 $ 9.72
------- -------
Total Return--excluding sales charge.................................................. (2.32 )%(b) (2.52)%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)..................................................... $ ** $10,801
Ratio of expenses to average net assets............................................... 0.00%(c) 0.31%(c)
Ratio of net investment income to average net assets.................................. 1.99%(c) 1.58%(c)
Portfolio Turnover(d)................................................................. 4% 4%
</TABLE>
- ---------
** Net assets are less than $1,000.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
See notes to financial statements.
-112-
<PAGE> 115
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ALLOCATED
AGGRESSIVE FUND
------------------
FROM MAY 1, 1996
TO JULY 31,
1996(A)
------------------
CLASS A CLASS Y
------- -------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................................................. $10.00 $10.00
------- -------
Investment Activities
Net investment income (loss)........................................................ (0.01 ) 0.02
Net realized and unrealized (losses) from investments............................... (0.33 ) (0.40 )
------- -------
Total from Investment Activities.............................................. (0.34 ) (0.38 )
------- -------
Distributions
Net investment income............................................................... (0.02 ) (0.02 )
------- -------
NET ASSET VALUE, END OF PERIOD........................................................ $ 9.64 $ 9.60
======= =======
Total Return--excluding sales charge.................................................. (3.38 )%(b) (3.78 )%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)..................................................... $ 2 8,207
Ratio of expenses to average net assets............................................... 0.57%(c) 0.35%(c)
Ratio of net investment income to average net assets.................................. (0.30 )%(c) 0.70%(c)
Portfolio Turnover(d)................................................................. 18% 18%
</TABLE>
- ---------
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
See notes to financial statements.
-113-
<PAGE> 116
QUALIVEST MUTUAL FUNDS
3435 Stelzer Road
Columbus, Ohio 43219-3035
INVESTMENT ADVISER
Qualivest Capital Management, Inc.
P.O. Box 2758
Portland, Oregon 97208
ADMINISTRATOR & DISTRIBUTOR
BISYS Fund Services
3435 Stelzer Road
Columbus, Ohio 43219-3035
LEGAL COUNSEL
Dechert Price & Rhoads
1500 K Street, N.W.
Washington, D.C. 20005
AUDITORS
Deloitte & Touche LLP
1700 Courthouse Plaza Northeast
Dayton, Ohio 45402
This report is submitted for the general information of the shareholders of the
Funds. It is not authorized for distribution to prospective investors in the
Funds unless preceded or accompanied by a prospectus. To obtain a prospectus for
any of the Qualivest Funds, call 1-800-743-8637. The prospectus contains more
complete information, including charges and expenses. Please read it carefully
before you invest or send money.
For more information, about these Funds or your account, contact your investment
representative or call 1-800-743-8637.
ADV 972 (8/96-15,000)
THE QUALIVEST
MUTUAL FUNDS ANNUAL REPORT
- - Small Companies Value Fund
- - International Opportunities Fund
- - Large Companies Value Fund
- - Optimized Stock Fund
- - Diversified Bond Fund
- - Intermediate Bond Fund
- - Money Market Fund
- - Tax-Free Money Market Fund
- - U.S. Treasury Money Market Fund
- - Allocated Conservative Fund
- - Allocated Balanced Fund
- - Allocated Growth Fund
- - Allocated Aggressive Fund
For the 12 months ended
July 31, 1996
Mutual Funds:
- - Are not insured by the FDIC
- - Are not deposits or other obligations
of, or guaranteed by, any bank
- - Are subject to investment risk, including
the possible loss of the principal amount
invested
- - May involve sales charges and other fees
[QUALIVEST LOGO]
