<PAGE> 1
Contents
<TABLE>
<S> <C>
QUALIVEST FUND FACTS 1
A GUIDE TO YOUR
SHAREHOLDER REPORT 3
LETTER FROM THE CHAIRMAN 5
MARKET REVIEW AND
ECONOMIC OUTLOOK 6
PORTFOLIO REVIEWS 7
STATEMENTS OF ASSETS
AND LIABILITIES 18
STATEMENTS OF OPERATIONS 21
STATEMENTS OF CHANGES
IN NET ASSETS 24
SCHEDULES OF PORTFOLIO INVESTMENTS 27
NOTES TO FINANCIAL STATEMENTS 73
FINANCIAL HIGHLIGHTS 84
</TABLE>
<PAGE> 2
QUALIVEST FUND FACTS
Whatever your investment goal or investing style, you'll find a Qualivest Fund
or Funds to suit them. 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 . . .
<S> <C> <C> <C>
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EQUITY FUNDS
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Qualivest Small Capital appreciation Small U.S. companies that Have a long time
Companies Value the portfolio manager horizon, seek
Fund(1) believes to be significant investment
undervalued and have growth and can accept
superior growth potential higher-than-average
volatility
Qualivest Capital appreciation Stocks of companies Have a long time
International outside the U.S. that are horizon, seek
Opportunities included in the MSCI EAFE significant investment
Fund(2) Index(3) growth and can accept a
higher-than-average
volatility
Qualivest Large Capital appreciation Large U.S. companies Have a medium to long
Companies Value Fund and current income whose stocks are time horizon and seek
considered by the investment growth and
portfolio manager to be income
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
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FIXED-INCOME FUNDS
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Qualivest Current income and Securities issued by the Seek current income
Diversified Bond preservation of U.S. Government and its
Fund capital, with 7-11 agencies,
yr. average maturity mortgage-related
securities and corporate
bonds
Qualivest Current income and Securities issued by the Seek current income
Intermediate Bond preservation of U.S. Government, its
Fund capital, with 3-7 agencies and by
yr. average maturity corporations
</TABLE>
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<PAGE> 3
<TABLE>
<CAPTION>
PORTFOLIO CONSISTS DESIGNED FOR INVESTORS
QUALIVEST FUND OBJECTIVE PRIMARILY OF . . . WHO . . .
<S> <C> <C> <C>
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MONEY MARKET FUNDS(5)
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Qualivest Money Current income, High-quality, short-term Seek a convenient way
Market Fund liquidity & money-market instruments to accumulate cash
stability of while waiting for other
principal 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 liquidity & issued or guaranteed by to accumulate cash
Market Fund stability of the U.S. Government or while waiting for other
principal its agencies investment
opportunities
<FN>
* The Qualivest Funds are available through U.S. Bancorp Securities, a brokerage
subsidiary of U.S. Bancorp and member NASD, SIPC.
(1) Small-cap funds typically carry additional risks since smaller companies
generally have a higher risk of failure and, by definition, are not as well
established as "blue-chip" companies. Historically, smaller-company stocks
have experienced a greater degree of market volatility than 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 Europe, Australia, Far East (EAFE)
Index is an unmanaged index generally representative of 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.
</TABLE>
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<PAGE> 4
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 INTERVIEW WITH THE INVESTMENT ADVISER 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, in the annual report--the next report you
will receive--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 accompany a real
investment, 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.
[SAMPLE] 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
NET ASSETS: (assets minus liabilities): summarizes the
amounts that comprise 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.
[SAMPLE] INVESTMENT INCOME includes dividend and interest income
earned by the investments in the Fund
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
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<PAGE> 5
The STATEMENT OF CHANGES IN NET ASSETS lists the activity that affected the
value of the Fund's total net assets during the two most recent reporting
periods.
[SAMPLE] See Statement of Operations
Distributions declared to shareholders from net
investment income or net realized gains during the
period
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.
[SAMPLE] Type of security
Industry sector and percentage of the Fund's net assets
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 may not be audited by an independent
accounting firm.
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<PAGE> 6
QUALIVEST FUNDS
Semi-Annual Report
January 31, 1996
CHAIRMAN'S LETTER
Dear Shareholders:
It is my pleasure to present the semi-annual report of the Qualivest Funds for
the period ended January 31, 1996--a period of strength in both the stock and
bond markets and for the Qualivest Funds.
We are pleased to report healthy returns for every Fund in the Qualivest
family--including our new Optimized Stock Fund and International Opportunities
Fund. In fact, the Qualivest Funds continue to receive favorable attention in
the media, including recent articles in USA Today, The Oregonian, Bank
Investment Product News and Pensions & Investments.*
From the beginning of 1995 through the end of January 1996, the Dow Jones
Industrial Average soared from about 3800 to 5400. Because the markets may be
getting overextended, we believe that our value approach to investing is
particularly appropriate at this time. Value investing is the discipline of
looking for companies that are temporarily out of favor or overlooked by other
investors. In addition, our portfolio managers have a great deal of experience
with a variety of market cycles. Most have at least 20 years of experience in
the investment field.
Following this letter is a broad overview of the financial markets--based on a
discussion with Tim Leach, the Chief Investment Officer of Qualivest Capital
Management, the Funds' adviser. 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 18 months since the Funds were launched on August 1, 1994, the Qualivest
family has grown from $530 million to $1.5 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,
George R. Landreth
Chairman, Qualivest Funds
* USA Today (9/1/95, p. 6b); Oregonian (1/18/96, p. b1); Bank Investment Product
News (8/28/95, p. 1); Pensions & Investments (11/27/95, p. 1).
THE QUALIVEST FUNDS, LIKE ALL MUTUAL FUNDS, ARE NOT INSURED BY THE FDIC OR ANY
OTHER 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.
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<PAGE> 7
MARKET REVIEW AND ECONOMIC OUTLOOK
FROM QUALIVEST CAPITAL MANAGEMENT
HOW WOULD YOU CHARACTERIZE THE CURRENT STOCK MARKET ENVIRONMENT?
TIM LEACH: There has really been a correction in stock prices, but not in the
usual sense. Most people think of a stock market correction as something
negative. In my view, a correction is really nothing more than the marketplace
correcting a mispricing between expectations and current economic or earnings
data. We've got a market that has come to believe that the economy has achieved
a "soft landing," in which there is enough growth to avoid a recession, but not
enough growth to create fears about inflation. This positive correction began
about a year ago, when the Dow was at 4000. In my view, it is approaching some
kind of finality, with the market hovering around 5400 at the end of January.
HOW DOES QUALIVEST'S VALUE APPROACH FIT INTO THIS TYPE OF MARKET?
TIM LEACH: We tracked the market very closely up until the middle of the third
calendar quarter of 1995. As the economy slowed in the last six months of 1995,
Wall Street shifted its emphasis toward growth-type investments. Even so, our
Funds delivered excellent performance over the past six months. From August 1,
1995, to January 31, 1996, the Qualivest Small Companies Value Fund was up
9.89%, the Qualivest Large Companies Value Fund was up 8.00% and the Optimized
Stock Fund produced a return of 13.26%.+ As the year goes along, I expect a
continuation of a positive economic growth forecast--which should create a
movement back into cyclical stocks and the more value-oriented issues in which
we invest.
WHAT IS YOUR OUTLOOK FOR THE ECONOMY AND THE MARKETS IN THE YEAR AHEAD?
TIM LEACH: The most likely scenario is continued slow growth, low inflation and
relatively low interest rates. We expect the economy to experience nominal
growth in the first quarter of 1996, spurred by pent-up demand from consumers
coming off a hard winter. However, this increased economic activity is really
nothing more than catching up after poor economic activity in December and
January. We expect flat to modest growth in the economy for the rest of 1996,
with the stock market showing moderate gains but vulnerable to a potential rise
in interest rates in the near term.
If any part of the market is overvalued, it is primarily the stocks of large
companies that provide consumer staples. These stocks have been bid up by
unprecedented flows of retirement money coming into the market that is being
invested in basic companies with household names. We are being very selective
right now in the stocks we buy, looking for companies that have fundamental
value in their products or services. We feel that the best opportunities for us
at this time are in small-company and international investments.
+ These returns are for Class A Shares, without the sales charge. With the
maximum sales charge of 4.50%, the Small Companies Value Fund was up 4.97%,
the Large Companies Value Fund was up 3.18% and the Optimized Stock Fund
returned 8.12% for the period.
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<PAGE> 8
QUALIVEST SMALL COMPANIES
VALUE FUND(7)
For the six months ended January 31, 1996, the Fund produced a total return of
9.89% and for the 12 months ending on that date, the Fund produced a total
return of 40.30%. (Returns are for Class A shares, without the sales charge.) In
comparison, the Russell 2000 Index returned 6.03% and 29.94% for the six- and
12-month periods, respectively.
<TABLE>
<CAPTION>
TOTAL RETURN*
AS OF 1/31/96
- ---------------------------------------------------------
AVERAGE ANNUAL
----------------------
SINCE
6 MONTHS 1 YEAR 5 YEARS++ INCEPTION++
<S> <C> <C> <C> <C>
Load** 4.97% 33.99% 24.93% 20.12%
Without Load 9.89% 40.30% 26.06% 20.82%
<FN>
** Reflects 4.50% maximum sales charge.
++ This performance includes performance of certain collective trust fund
("commingled") accounts advised by Qualivest Capital Management, Inc.,
dating back to January 1, 1988, prior to the Qualivest Small Companies
Value Fund which began 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, their
performance may have been adversely affected.
</TABLE>
The Qualivest Small Companies Value Fund is managed by Dale Benson, who has more
than 20 years of experience in the securities industry. In addition to being a
Chartered Financial Analyst, Mr. Benson holds a Ph.D. in history.
HOW WOULD YOU ANALYZE YOUR RECENT PERFORMANCE?
DALE BENSON: If you look at the past 12 months, the Fund's total return of
40.30% is 10 percentage points ahead of our benchmark, the Russell 2000 Index.
Over the past five years, the portfolio is up an average of 26.06%,++ 7
percentage points above the Russell 2000. In the last few months, however,
small-capitalization stocks underperformed the shares of larger companies. Money
continues to flow into mutual funds nationally, and that money has to be put to
work. Typically, that means buying stocks in companies where there are more
shares available. On the positive side, when there's a down draft in the market,
our stocks are less likely to be hurt.
HOW WOULD YOU DESCRIBE YOUR INVESTMENT STYLE?
DALE BENSON: I look for companies with market capitalizations under $1 billion
that are inexpensively priced--either because the stock isn't well covered by
Wall Street research, or because the company is temporarily out of favor. The
average market capitalization of the portfolio is about $250 million. We
sometimes hold a stock for three or four years before we reap its rewards.
WHAT ARE SOME OF YOUR FAVORITE AREAS OF THE MARKET RIGHT NOW?
DALE BENSON: In technology, there are a number of software companies that look
attractive. Borland International, Cognos and Rational Software all develop
products for the client-server marketplace, which is a hot area right now.
Although these are highly volatile areas with rapidly changing technologies, you
can't have a world with seamless communications without software. In financial
services, City National, a California bank that does business with the Hollywood
entertainment community, is a turnaround story. We think that it could be a
takeover candidate as more people perceive that the California economy is
improving. In the Northeast, where I expect consolidation in financial services,
Astoria Financial, Onbank and TR Financial are all inexpensive stocks.
Real Estate Investment Trusts, which comprise 6% of the portfolio, continue to
offer very attractive yields as interest rates fall.
Polymedica Industries sells wound-healing gels to nursing homes and an
over-the-counter cranberry tablet for urinary tract infections. The company has
distribution agreements with major drug companies such as Merck.
In capital goods, Air & Water Technologies is a leading company in the
privatization of water and
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<PAGE> 9
sewer systems throughout the world. They've got a $500 million multi-year
contract with the Commonwealth of Puerto Rico to completely redo their water
supply and sewage systems. Since most of the municipal water supplies and sewage
treatment plants in the U.S. are not in compliance with new government
regulations, a lot of money is likely to be spent in this area over the next
several years.
Finally, an example of an out-of-favor company would be Quality Food Centers, a
Seattle-based food distributor and wholesaler. The stock, at $20, is half its
all-time high and inexpensive on a price-to-sales basis. We buy stocks when
they're down, not because everyone loves them.
WHAT IS YOUR CURRENT OUTLOOK?
DALE BENSON: Technology, finance and capital goods (such as machinery and
equipment) are still likely to be the top three themes, because they're big
sectors of the market where one can find a lot of value. Recently, I also
increased my weighting in certain health-care stocks that were beat up during
the recent Medicare debate in Congress. For example Theratx, which does contract
physical therapy work with hospitals and nursing homes, had fallen from $22 in
June of 1995 to $10 in January of 1996. Since the budget talks collapsed, some
of these companies affected by Medicare spending have appreciated.
(7) Small-capitalization funds typically carry additional risks since smaller
companies generally have a higher risk of failure and, by definition, are
not as well established as "blue chip" companies. Historically, smaller
company stocks have experienced a greater degree of market volatility than
stocks on average.
* The performance data quoted represents past performance and is not an
indication of future results. The investment return and net asset value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than the original cost.
-8-
<PAGE> 10
QUALIVEST INTERNATIONAL OPPORTUNITIES FUND(8)
For the six months ended January 31, 1996, the Fund produced a total return of
1.39% (Class A Shares, without the sales charge). In comparison, the Morgan
Stanley Capital International Europe, Australia, Far East (EAFE) Index produced
a return of 2.61% for the period.
<TABLE>
<CAPTION>
- ---------------------------------------------------------
TOTAL RETURN*
AS OF 1/31/96
- ---------------------------------------------------------
6 MONTHS 1 YEAR SINCE INCEPTION
(07/03/95)
<S> <C> <C> <C>
Load** -3.15% N/A 1.19%
Without Load 1.39% N/A 5.95%
<FN>
** Reflects 4.50% maximum sales charge.
</TABLE>
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 15 years of experience in the investment field.
HOW WOULD YOU DESCRIBE THE INTERNATIONAL OPPORTUNITIES FUND?
TIM LEACH: The International Opportunities Fund is a quantitatively managed fund
with about 700 stocks in the portfolio. These stocks are selected from the EAFE
Index of 1,100 stocks representing 20 developed countries throughout the world.
We feel very strongly that most investment return, particularly in the
international arena, comes from prudent asset allocation. One of the constraints
that we employ is that we stay very close to the EAFE country weighting.
Academic research has confirmed that active fund managers do not have a
consistent track record in determining which country is going to outperform
another. As with the Optimized Stock Fund, the turnover of securities in the
International Opportunities Fund is very low, which should appeal to
shareholders due to the tax advantages of low turnover.
SINCE A GREAT DEAL OF THE ADDED VALUE YOU BRING TO THIS FUND IS STOCK SELECTION,
DESCRIBE SOME OF THE CURRENT HOLDINGS AND WHY YOU CHOSE THEM.(9)
TIM LEACH: Some of our holdings include companies such as Volvo (Sweden);
Ciba-Geigy, Nestle (Switzerland); British Airways, Smithkline-Beecham (Britain);
Broken Hill Mines (Australia); L'Oreal (France); Bayer, Siemens, Daimler-Benz
(Germany); Olivetti (Italy); Asahi Chemical, Fuji Bank, Honda Motor, Matsushita
Electric and Mitsubishi Industries (Japan); Royal Dutch Petroleum (Holland); and
Singapore Airlines (Singapore). These companies are long-standing powerhouses in
their respective industries, which we have selected as stable investments that
reflect the economic growth of their respective countries. While we also own
many smaller, faster-growing foreign companies, this group represents the core
of the International Opportunities Fund.
IN WHAT COUNTRIES DOES THE FUND CURRENTLY INVEST?
<TABLE>
<S> <C>
Japan Sweden
United Kingdom Spain
Germany Singapore
France Belgium
Switzerland Denmark
Netherlands Finland
Hong Kong Norway
Australia Austria
Malaysia New Zealand
Italy Ireland
</TABLE>
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<PAGE> 11
WHAT IS YOUR OUTLOOK FOR INTERNATIONAL STOCKS?
TIM LEACH: While the U.S. economy appears to be late in its recovery cycle, many
other industrialized countries are just emerging from recession. In Europe, we
will likely begin to see an economic rebound as European banks continue to lower
interest rates. In Japan, which makes up 40% of the EAFE Index, the darkest days
appear to be behind us, and I would expect to see a moderate resumption of
reasonable economic and market growth. Investing in developed countries
throughout the world is an excellent way to diversify a portfolio, since every
market moves independently. We believe that the International Opportunities Fund
is a prudent and efficient way to help investors accomplish this goal.
(8) International investing involves certain risk factors, such as currency
exchange-rate volatility, differences in political, social or economic
conditions and in taxation, auditing and other financial standards.
(9) The composition of the Fund's holdings is subject to change.
* The performance data quoted represents past performance and is not an
indication of future results. The investment return and net asset value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than the original cost.
-10-
<PAGE> 12
QUALIVEST LARGE COMPANIES
VALUE FUND
For the six months ended January 31, 1996, the Fund produced a total return of
8.00%, and for the 12 months ended on that date, it had a total return of
34.35%. (Returns are for Class A shares, without the sales charge.) In
comparison, the Standard & Poor's 500 Stock Index produced a return of 14.50%
and 38.55% for the periods, respectively.
<TABLE>
<CAPTION>
- ---------------------------------------------------------
TOTAL RETURN*
AS OF 1/31/96
- ---------------------------------------------------------
6 MONTHS 1 YEAR SINCE INCEPTION
(08/01/94)
<S> <C> <C> <C>
Load** 3.18% 28.25 % 18.19%
Without Load 8.00% 34.35 % 21.87%
<FN>
** Reflects 4.50% maximum sales charge.
</TABLE>
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, MBA, is also a Chartered Financial Analyst. John Dozier has a degree
in economics.
HOW WOULD YOU ANALYZE YOUR RECENT PERFORMANCE?
JOHN DOZIER: On the plus side, we reduced our weighting in technology, so that
we largely avoided the decline when technology stocks began to underperform. The
flip side is that we have been a bit early in buying them back--and they haven't
risen much in price yet. Because of our value approach, we tend to have more
than average exposure in cyclical stocks such as autos, chemicals and capital
goods companies that go out of favor when the economy slows. However, we don't
think there will be a recession this year. As a result, many of these value
stocks in our portfolio are now extremely cheap, and we expect them to have a
nice rebound in price.
JOHN SWANK: As of the end of July 1995, we were beating the S&P by two points.
By January 31, 1996, we had fallen behind. Two main culprits were retail and
basic materials stocks. The Christmas retailing season was very weak, and it is
widely acknowledged that there is too much capacity in the retail industry. In
addition, the prices of basic materials stocks, such as paper and forest
products, declined as investors began to worry about the economy slowing.
WHERE ARE SOME INTERESTING AREAS OF THE MARKET RIGHT NOW?
JOHN DOZIER: I particularly like the specialty chemicals group. For one thing,
these companies can take advantage of falling commodity chemical prices, which
they purchase to produce a proprietary product or service. One example of a
specialty chemicals company would be Ecolab, which is the world's leader in
providing cleaning compounds to restaurants, hotels, hospitals and other
institutions. It appears that the price of basic chemicals such as ethylene will
continue to fall as capacity comes on line. In addition, Ecolab's packaging
costs, primarily plastic, are also coming down in price.
JOHN SWANK: Although financial stocks have had an excellent run, they still sell
for only about 10 times 1996 estimated earnings. During calendar year 1995, our
financial stocks were up 62% as a group. We bought First Interstate Bank at $69
in December 1994 and sold it at $152 when it accepted a buyout offer from Wells
Fargo. Mellon Bank, Household International and Federal National Mortgage
Association (Fannie Mae) also did well. Even if interest rates hadn't fallen in
1995, I still think these stocks would have gone up because they were so cheap.
If interest rates rise in 1996, then prices would fall, so we're reducing our
holdings somewhat.
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<PAGE> 13
WHAT WOULD BE A GOOD EXAMPLE OF YOUR VALUE STYLE OF INVESTING?
JOHN DOZIER: The largest holding in the Fund is Boise Cascade (4.5% of net
assets).(10) Currently, paper industry stocks are down because there is a great
deal of inventory that has to be worked down. In addition, we think that Boise
Cascade is a cheap stock because it owns 81% of Boise Cascade Office Products.
If you exclude the value of this subsidiary, the paper portion of Boise Cascade
is selling at just four times trailing 12-month earnings, which is very low.
There has also been a management change at Boise Cascade that has been very
positive.
JOHN SWANK: In general, the retailing industry is beaten up--and, therefore, it
offers some interesting values. For instance, Waban owns BJ's Wholesale on the
East Coast, which is like Price/Costco in the West. The company also owns
Homebase, a building materials and supplies retailer that competes with Home
Depot. Neither business is high growth, but earnings are going up and the stock
is cheap at nine times earnings. But remember, drug stocks were also beaten up a
while back, due to investor fears over the Clinton health-care proposals. In
1994, we bought Merck at $30 when it was selling at 11 times earnings. We
recently sold it for $69, when it was trading at 22 times 1996 estimated
earnings and its dividend yielded only 1.9%.
WHAT IS YOUR OUTLOOK ON THE MARKET?
JOHN DOZIER: Cautious. I think we've had an awfully big run. My feeling is that
there are going to be earnings disappointments this year. We've got an inventory
liquidation going on throughout the economy now. That is part of what has hurt
the paper industry. People who were buying in front of price increases
throughout the year all of a sudden realized that they had more inventory than
they needed.
JOHN SWANK: With a slower economy, people want to buy drug, food, beverage and
high-quality growth stocks with consistent earnings growth. Those stocks sell at
high price-to-book value and high price/ earnings ratios, which really isn't our
style. The cyclical stocks and value stocks are cheap because people are afraid
of a recession, but we don't think there will be a recession in an election
year, so we think that cyclical stocks can bounce back. Right now, nobody likes
retail and these stocks are the lowest they have been for five years. But the
industry is consolidating, and we believe that the remaining companies will
benefit. Our style is to buy when stocks are out of favor as long as they're
good companies, and then sell them when everybody loves them.
(10) The composition of the Fund's holdings is subject to change.
* The performance data quoted represents past performance and is not an
indication of future results. The investment return and net asset value
will fluctuate so that an investor's shares, when redeemed, may be worth
more or less than the original cost.
-12-
<PAGE> 14
QUALIVEST OPTIMIZED STOCK FUND
For the six months ended January 31, 1996, the Fund produced a total return of
13.26%, and for the eight-month period since its inception, its total return was
24.18%. (Returns are for Class A shares, without the sales charge.) In
comparison, the S&P 500 was up 14.5% for the six-month period.
<TABLE>
<CAPTION>
- ---------------------------------------------------------
TOTAL RETURN*
AS OF 1/31/96
- ---------------------------------------------------------
6 MONTHS 1 YEAR SINCE INCEPTION
(05/02/95)
<S> <C> <C> <C>
Load** 8.12% N/A 18.61%
Without Load 13.26% N/A 24.18%
<FN>
** Reflects 4.50% maximum sales charge.
</TABLE>
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 15 years of experience in the investment field.
WHAT EXACTLY IS THE OPTIMIZATION STRATEGY YOU EMPLOY FOR THE FUND?
TIM LEACH: First, let's emphasize that this is not an index fund, which would
simply involve buying all the stocks in the S&P 500 Index in order to match it.
Instead, the Optimized Stock Fund attempts to beat the index using a
quantitative methodology, meaning we make no subjective bets on stocks or
sectors. We created an optimization strategy that favors stocks that have a
higher expected total return than other securities in their industry and have
seen positive momentum in their share price. The data on earnings and dividend
expectations come from Institutional Brokers Estimate System, a company that
collects Wall Street earnings estimates going out three to five years.
This quantitative model gives us input as to which stocks appear to be the best
values--and we concentrate on these. Although the portfolio is designed to
duplicate the industry weightings of the S&P 500, we hold more or less of
individual stocks depending on where we find value. We also manage this
portfolio for lower turnover, which reduces capital gains for our shareholders.
HOW WOULD YOU ASSESS THE MODEL'S PERFORMANCE SO FAR?
TIM LEACH: The model tended to select more value-style stocks than growth
stocks. We felt that was a prudent initial strategy. As a result, the model
underperformed the S&P 500 slightly. But if you break the S&P 500 Index into
growth and value segments, you would see that we outperformed the value segment
but not the growth segment. To enhance the growth portion of the Fund, we have
added a complementary strategy that focuses on share price momentum, which is a
measure of growth potential. As of January 31, 1996, we now have both the growth
and value strategies working at the same time. We have already seen an
improvement in the Fund's performance relative to the S&P 500 Index.
WHAT ARE SOME OF THE STOCKS YOU'VE EMPHASIZED BASED ON YOUR QUANTITATIVE
STRATEGY?
TIM LEACH: During the past six months, we overweighted securities such as USAir,
Chemical Bank, Clorox, Charming Shoppes, Pep Boys and The Gap due to their
favorable earnings outlook and positive price momentum. This group of securities
has shown increases of between 16% and 45% since we purchased them during the
past six-month period.
The composition of the Fund's holdings is subject to change.
* The performance data quoted represents past performance and is not an
indication of future results. The investment return and net asset value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than the original cost.
-13-
<PAGE> 15
QUALIVEST DIVERSIFIED BOND FUND
For the six months ended January 31, 1996, the Fund produced a total return of
6.54%; since inception on May 2, 1995, it returned 9.81%. (Returns are for Class
A Shares, without the sales charge.) In comparison, the Lehman Brothers
Aggregate Bond Index returned 7.25% for the six-month period.
<TABLE>
<CAPTION>
- ---------------------------------------------------------
TOTAL RETURN*
AS OF 1/31/96
- ---------------------------------------------------------
6 MONTHS 1 YEAR SINCE INCEPTION
(05/02/95)
<S> <C> <C> <C>
Load** 2.80% N/A 5.99%
Without Load 6.54% N/A 9.81%
<FN>
** Reflects 3.50% maximum sales charge.
</TABLE>
The Qualivest Diversified Bond Fund is managed by Curry Garvin, 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. In addition to being a Chartered Financial Analyst, Mr. Garvin has a
degree in finance.
HOW DOES THIS FUND DIFFER FROM THE INTERMEDIATE BOND FUND, WHICH YOU ALSO
MANAGE?
CURRY GARVIN: Launched May 2, 1995, the Diversified Bond Fund contains bonds in
more asset classes and with broader maturities. We invest in 30-year Treasuries,
mortgage-backed securities and corporate bonds. In contrast, the Intermediate
Bond Fund contains U.S. Treasuries and corporate bonds maturing between one and
10 years and has a shorter average duration and maturity.
WHAT FACTORS AFFECTED THE DIVERSIFIED BOND FUND'S PERFORMANCE?
CURRY GARVIN: In general, bond funds benefited from falling interest rates
during the past six to 12 months. However, mortgage-backed securities, which are
backed primarily by home mortgages, underperformed other types of bonds. In a
period of falling interest rates, homeowners tend to refinance their mortgages.
As a result, mortgage-backed securities do not appreciate as much as other bonds
without such a prepayment option.
GIVEN THIS SET OF CIRCUMSTANCES, WHAT HAS BEEN YOUR STRATEGY?
CURRY GARVIN: I have been underweighted in mortgages, and the ones that I have
owned have low coupons. Lower-coupon mortgages have performed better than the
overall mortgage sector. The mortgage area can be a place of opportunity if
you're selective. For example, if I can buy a pool of Ginnie Mae mortgages with
a 6.5% to 7% coupon, so the risk of prepayment is relatively low, and pick up
one full percentage point in yield compared to U.S. Treas-
uries, then that probably is a pretty decent value. One of the tough things with
mortgages is estimating how quickly homeowners are going to repay. In 1993, when
rates went down, people refinanced several times in a single year. If you have
gone out and paid 103 for a mortgage, and people begin to repay you at 100, then
you're taking a loss. Also, since they're prepaying faster, you're not fully
participating in a bond market rally as you would if you had held a noncallable
U.S. Treasury security. By owning lower-coupon mortgages, that effect has been
very much diminished.
WHAT IS YOUR OUTLOOK FOR THE BOND MARKET?
CURRY GARVIN: I still see weakness in the economy and the probability that
interest rates will fall further. I don't see any of our trading partners being
real strong--the economies of Japan, Mexico and Europe are all slow. As a
result, my strategy is to keep the portfolio's duration and maturity longer than
average. U.S. corporate bonds aren't adding a great deal of value right now. I
will continue to add low-coupon mortgages for the extra yield. In addition, I
have purchased some high-quality international bonds such as Westpac Banking
Corp., a major Australian banking company.
* The performance data quoted represents past performance and is not an
indication of future results. The investment return and net asset value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than the original cost.
-14-
<PAGE> 16
QUALIVEST INTERMEDIATE BOND FUND
For the six months ended January 31, 1996, the Fund produced a total return of
5.73%, and for the 12 months ending on that date, the Fund's return was 13.18%.
(Returns are for Class A Shares, without the sales charge.) In comparison, the
Fund's benchmark, the Lehman Brothers Intermediate Government/Corporate Bond
Index, returned 6.11% and 14.38%, for the six- and 12-month periods,
respectively.
<TABLE>
<CAPTION>
- ----------------------------------------------------------
TOTAL RETURN*
AS OF 1/31/96
- ----------------------------------------------------------
AVERAGE ANNUAL
-----------------------
SINCE
6 MONTHS 1 YEAR 5 YEARS++ INCEPTION++
<S> <C> <C> <C> <C>
Load** 2.08% 9.24 % 6.90% 7.28%
Without Load 5.73% 13.18 % 7.67% 7.75%
<FN>
** Reflects 3.50% maximum sales charge.
++ This performance includes performance of certain collective trust fund
("commingled") accounts advised by Qualivest Capital Management, Inc.,
dating back to January 1, 1988, prior to the Qualivest Intermediate Bond
Fund which began 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, their
performance may have been adversely affected.
</TABLE>
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. In addition to being a Chartered Financial Analyst, Mr. Garvin
has a degree in finance.
WHAT FACTORS HAVE AFFECTED YOUR PERFORMANCE?
CURRY GARVIN: The first decision we had to make was the length of the
portfolio's average duration and maturity. The bond market did poorly in 1994,
so bond managers were conservative when they entered 1995. The economy was still
strong coming into the year, so I kept the portfolio fairly short until the fall
of 1995, when it appeared that the economy was going to slow down. At that
point, I lengthened the portfolio to lock in higher interest rates, which was a
good decision as interest rates fell. As of January 31, 1996, the Fund's
duration was 3.75 years, longer than the 3.26-year duration of the Lehman
benchmark. (The longer a portfolio's duration, the more likely its price will
rise when interest rates decline.)
The second decision was the credit quality of the corporate bond portfolio.
Because there has been such a demand for corporate paper, the relative yields
between corporate and U.S. Treasury bonds have narrowed dramatically. In
addition, there wasn't much extra yield for owning a corporate bond of lower
quality. For instance, I might get an extra 0.50% yield compared to a U.S.
Treasury for owning a BBB-rated corporate, and an extra 0.40% yield for owning a
Single A. That's not enough to compensate for the drop in credit quality. You're
starting to see companies report poorer earnings so there will be more of a
focus on quality as we go forward.
WHAT ARE SOME REPRESENTATIVE CORPORATE BONDS IN THE PORTFOLIO? (11)
CURRY GARVIN: Enron is a natural gas company with a strong cash flow. The
company is well positioned to take advantage of the expanding uses for natural
gas. Another company I like is Pacificorp, a local utility that has the ability
to transmit low-cost power into California when utilities are further
deregulated. Their cost structure is quite a bit lower than that of other
southern California utilities. Strong names also include Wal-Mart and Shell and
Associates, one of Ford's finance subsidiaries.
WHAT IS YOUR OUTLOOK FOR THE INTERMEDIATE-TERM BOND MARKET?
CURRY GARVIN: The demand for corporate bonds remains strong, while the supply
remains scarce. In contrast to the 1980s when companies were adding debt to
their balance sheets, the opposite is true today. With such a supply/demand
imbalance, it is unlikely that corporate bonds will need to offer
significant interest rate premiums over U.S. Treas-
uries. If the Federal Reserve Board continues to
-15-
<PAGE> 17
lower short-term interest rates, then capital appreciation could continue to be
the biggest component of total return. However, there is probably more room for
30-year bonds to appreciate, since those yields remain above 6%. In contrast,
three-year Treasuries recently yielded 4.88%. If we get some clear signs of
recession, then there is also more room for intermediate rates to drop farther
as well.
(11) The composition of the Fund's holdings is subject to change.
* The performance data quoted represents past performance and is not an
indication of future results. The investment return and net asset value
will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
-16-
<PAGE> 18
QUALIVEST MONEY MARKET FUNDS(12)
- - Qualivest Money Market Fund is comprised primarily of commercial
paper--high-quality short-term debt issued by blue-chip corporations. As of
January 31, 1996, the Fund's average maturity was 30 days.
- - Qualivest Tax-Free Money Market Fund (13) is comprised primarily of short-term
tax-free municipal securities. As of January 31, 1996, the Fund's average
maturity was 41 days.
- - Qualivest U.S. Treasury Money Market Fund is comprised primarily of short-term
U.S. Treasury securities. As of January 31, 1996, the Fund's average maturity
was 46 days.
The Qualivest Money Market Funds are managed by John Coulter, who has 30 years'
experience in financial analysis and portfolio management.
HOW WOULD YOU DESCRIBE THE MONEY-MARKET ENVIRONMENT DURING THE PAST SIX MONTHS?
JOHN COULTER: In response to a weakening economy, the Federal Reserve lowered
the federal funds rate--the rate member banks charge each other for overnight
loans--a total of 0.50 a percentage point. Money-market securities, such as
commercial paper and U.S. Treasury bills, tend to follow the federal funds rate
closely. Because investors continue to expect interest rates to come down, the
yield curves for both commercial paper and U.S. Treasuries were inverted--that
is, the longer their maturities, the lower the yields. Usually, rates would be
higher for securities maturing in 120 days than securities maturing in 60 days,
because there is a risk of holding debt longer. Last fall, however, commercial
paper maturing in 60 days was yielding 5.90% while paper maturing in 120 days
was yielding 5.60%.
GIVEN THE CURRENT ENVIRONMENT, WHAT HAS BEEN YOUR STRATEGY?
JOHN COULTER: Even though the yield curves remain inverted, our strategy is to
try to increase the Funds' average maturity. By doing so, we get a little bit
less in yield, but we are doing so because we believe that the entire interest
rate structure will be lower as we move further into 1996--which would increase
prices. The economy is slower and inflation appears to be well contained. We
could see the federal funds rate down to 4.50% by the end of 1996.
WHAT IS YOUR BIGGEST CHALLENGE IN THE TAX-FREE FUND?
JOHN COULTER: We are trying to increase the proportion of Oregon paper in the
portfolio, which would provide a double tax benefit for Oregon residents.
Short-term Oregon securities are very scarce. A good portion of the paper in the
short municipal market is really longer-term paper that has a "put" feature
attached to it, allowing you to redeem it at par in seven or 30 days. The
Securities & Exchange Commission allows you to consider such putable municipal
bonds as a short-term investment. Often, Oregon bonds will tend to yield a
little bit less because they are more attractive to Oregon investors. Recently,
we were pleased to come upon some variable-rate Oregon issues that were priced
at a level equivalent to other national paper.
(12) 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.
(13) Some of the income may be subject to the federal alternative minimum tax
and to certain state and local taxes.
-17-
<PAGE> 19
QUALIVEST FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
U.S.
MONEY TREASURY TAX-FREE
MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS:
Investments, at value...................................................... $354,565,122 $103,173,032 $37,670,893
Repurchase agreements...................................................... 32,234,076 -- --
------------ ------------ -----------
Total Investments (Amortized cost $386,799,198; $103,173,032; and
$37,670,893, respectively)................................................ 386,799,198 103,173,032 37,670,893
Interest receivable........................................................ 376,841 710,958 256,446
Unamortized organization costs............................................. 2,175 -- --
Prepaid expenses........................................................... 40,597 10,837 3,028
------------ ------------ -----------
Total Assets........................................................ 387,218,811 103,894,827 37,930,367
------------ ------------ -----------
LIABILITIES:
Dividends payable.......................................................... 1,622,402 461,448 87,182
Payable to brokers for investments purchased............................... -- -- 551,838
Accrued expenses and other payables:
Investment advisory fees................................................ 81,829 -- --
Administration fees..................................................... 13,485 3,836 1,302
Distribution and shareholder service fees (Class A)..................... 71,846 33,636 12,442
Accounting and transfer agent fees...................................... 8,211 5,835 6,240
Legal and audit fees.................................................... 20,403 5,263 4,124
Printing fees........................................................... 20,300 5,417 3,123
Other................................................................... 12,023 7,374 31,243
------------ ------------ -----------
Total Liabilities................................................... 1,850,499 522,809 697,494
------------ ------------ -----------
NET ASSETS:
Capital.................................................................... 385,368,121 103,372,018 37,230,400
Accumulated undistributed net realized
gains from investment transactions........................................ 191 -- 2,473
------------ ------------ -----------
Net Assets.......................................................... $385,368,312 $103,372,018 $37,232,873
============ ============ ===========
Net Assets
Class A................................................................. $216,266,559 $78,961,702 $34,919,687
Class Y................................................................. 82,436,068 13,997 28,925
Class Q................................................................. 86,665,494 24,396,319 2,281,788
------------ ------------ -----------
Total............................................................... $385,368,121 $103,372,018 $37,230,400
============ ============ ===========
Outstanding units of beneficial interest (shares)
Class A................................................................. 216,266,559 78,961,702 34,919,687
Class Y................................................................. 82,436,068 13,997 28,925
Class Q................................................................. 86,665,494 24,396,319 2,281,788
------------ ------------ -----------
Total............................................................... 385,368,312 103,372,018 37,230,400
============ ============ ===========
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.
-18-
<PAGE> 20
QUALIVEST FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
INTERMEDIATE DIVERSIFIED SMALL COMPANIES
BOND FUND BOND FUND VALUE FUND
------------ ------------ ---------------
<S> <C> <C> <C>
ASSETS:
Investments, at value..................................................... $145,994,833 $139,275,687 $ 249,859,858
Repurchase agreements..................................................... 5,671,649 6,394,415 16,644,564
------------ ------------ ------------
Total Investments (Cost $146,232,407; $141,489,949; and $219,304,407,
respectively)............................................................ 151,666,482 145,670,102 266,504,422
Interest and dividends receivable......................................... 2,092,812 2,144,257 243,177
Receivable from brokers for investments sold.............................. -- -- 5,553
Receivable for capital shares issued...................................... -- -- 16,663
Unamortized organization costs............................................ 17,209 2,647 9,651
Prepaid expenses.......................................................... 9,298 16,044 15,616
------------ ------------ ------------
Total Assets....................................................... 153,785,801 147,833,050 266,795,082
------------ ------------ ------------
LIABILITIES:
Payable to brokers for investments purchased.............................. 2,000,000 526,053 1,983,090
Accrued expenses and other payables:
Investment advisory fees............................................... 57,666 35,718 173,694
Administration fees.................................................... 5,359 5,209 9,342
Distribution and shareholder service fees (Class A).................... 238 19 1,571
Accounting and transfer agent fees..................................... 7,788 6,229 5,049
Legal and audit fees................................................... 12,558 7,111 13,191
Printing fees.......................................................... 6,595 4,673 9,431
Other.................................................................. 5,150 4,923 8,734
------------ ------------ ------------
Total Liabilities.................................................. 2,095,354 589,935 2,204,102
------------ ------------ ------------
NET ASSETS:
Capital................................................................... 145,427,413 141,240,585 211,230,791
Undistributed net investment income....................................... 353,809 353,157 11,053
Net unrealized appreciation from investments.............................. 5,434,075 4,180,153 47,200,015
Accumulated undistributed net realized gains from investment
transactions............................................................. 475,150 1,469,220 6,149,121
------------ ------------ ------------
Net Assets......................................................... $151,690,447 $147,243,115 $ 264,590,980
============ ============ ============
Net Assets
Class A................................................................ $ 543,871 $ 91,346 $ 4,590,535
Class Y................................................................ 150,998,111 147,151,759 259,248,637
Class C................................................................ 148,465 10 751,808
------------ ------------ ------------
Total.............................................................. $151,690,447 $147,243,115 $ 264,590,980
============ ============ ============
Outstanding units of beneficial interest (shares)
Class A................................................................ 52,539 8,780 343,983
Class Y................................................................ 14,453,101 13,898,938 19,438,723
Class C................................................................ 14,491 1 57,064
------------ ------------ ------------
Total.............................................................. 14,520,131 13,907,719 19,839,770
============ ============ ============
Net asset value
Class A--redemption price per share.................................... $ 10.35 $ 10.40 $ 13.35
Class Y--offering and redemption price per share....................... 10.45 10.59 13.34
Class C--offering price per share *.................................... 10.25 10.09 13.17
============ ============ ============
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)...................... $ 10.73 $ 10.78 $ 13.98
============ ============ ============
<FN>
- ---------
* Redemption price per share (Class C) varies by length of time shares are held.
</TABLE>
See notes to financial statements.
-19-
<PAGE> 21
QUALIVEST FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
INTERNATIONAL
LARGE COMPANIES OPTIMIZED OPPORTUNITIES
VALUE FUND STOCK FUND FUND
--------------- ------------ -------------
<S> <C> <C> <C>
ASSETS:
Investments, at value.................................................... $ 97,216,420 $203,136,210 $116,474,513
Repurchase agreements.................................................... 9,875,915 2,339,431 2,342,069
------------ ------------ ------------
Total Investments (Cost $91,126,300; $177,783,168; and $144,648,420,
respectively)........................................................... 107,092,335 205,475,641 118,816,582
Foreign currency (Cost $3,260)........................................... -- -- 131,432
Interest and dividends receivable........................................ 174,199 303,900 72,851
Receivable from brokers for investments sold............................. 957,559 -- --
Receivable for capital shares issued..................................... 51,566 814 3,111
Unamortized organization costs........................................... 3,619 2,647 3,107
Prepaid expenses......................................................... 6,323 22,485 62,484
------------ ------------ ------------
Total Assets...................................................... 108,285,601 205,805,487 119,089,567
------------ ------------ ------------
LIABILITIES:
Payable for capital shares redeemed...................................... 707 -- --
Payable to brokers for investments purchased............................. 657,249 -- --
Accrued expenses and other payables:
Investment advisory fees.............................................. 52,717 48,857 33,720
Administration fees................................................... 3,730 7,115 4,167
Distribution and shareholder service fees (Class A)................... 814 105 428
Accounting and transfer agent fees.................................... 6,350 6,284 5,320
Legal and audit fees.................................................. 6,462 10,621 5,289
Printing fees......................................................... 4,401 6,772 905
Other................................................................. 3,735 6,826 --
------------ ------------ ------------
Total Liabilities................................................. 736,165 86,580 49,829
------------ ------------ ------------
NET ASSETS:
Capital.................................................................. 88,759,301 176,069,581 114,999,107
Undistributed(distributions in excess of) net investment income.......... 151,153 211,511 115,243
Net unrealized appreciation from investments............................. 15,966,035 27,692,473 4,168,162
Net unrealized appreciation from translation of assets and liabilities in
foreign currencies...................................................... -- -- (2,372 )
Accumulated undistributed net realized gain (loss) from investments and
foreign currency transactions........................................... 2,672,947 1,745,342 (240,402 )
------------ ------------ ------------
Net Assets........................................................ $ 107,549,436 $205,718,907 $119,039,738
============ ============ ============
Net Assets
Class A............................................................... $ 2,125,309 $ 315,511 $ 2,005,884
Class Y............................................................... 104,899,017 205,348,532 117,029,102
Class C............................................................... 525,110 54,864 4,752
------------ ------------ ------------
Total............................................................. $ 107,549,436 $205,718,907 $119,039,738
============ ============ ============
Outstanding units of beneficial interest (shares)
Class A............................................................... 177,506 26,173 189,851
Class Y............................................................... 8,726,167 17,008,684 11,038,560
Class C............................................................... 44,457 4,556 449
------------ ------------ ------------
Total............................................................. 8,948,130 17,039,413 11,228,860
============ ============ ============
Net asset value
Class A--redemption price per share................................... $ 11.97 $ 12.05 $ 10.57
Class Y--offering and redemption price per share...................... 12.02 12.07 10.60
Class C--offering price per share *................................... 11.81 12.04 10.59
============ ============ ============
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)..................... $ 12.53 $ 12.62 $ 11.07
============ ============ ============
- ---------
<FN>
* Redemption price per share (Class C) varies by length of time shares are held.
</TABLE>
See notes to financial statements.
-20-
<PAGE> 22
QUALIVEST FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
MONEY U.S. TREASURY TAX-FREE
MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
----------- --------------- --------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income................................................. $10,805,326 $ 3,099,340 $ 719,637
----------- ----------- -----------
Total Income................................................ 10,805,326 3,099,340 719,637
----------- ----------- -----------
EXPENSES:
Investment advisory fees........................................ 650,761 195,611 64,058
Administration fees............................................. 241,447 72,609 23,790
Distribution and shareholder service fees (Class A)............. 445,968 170,816 69,701
Distribution and shareholder service fees (Class Q)............. 94,074 32,945 2,144
Shareholder service fees (Class Y).............................. 92,026 17 43
Custodian fees.................................................. 55,720 16,756 5,490
Accounting and transfer agent fees.............................. 88,071 52,937 56,171
Legal and audit fees............................................ 29,521 8,660 3,757
Organization costs.............................................. 4,052 2,002 2,002
Trustees' fees and expenses..................................... 13,175 3,415 1,474
Registration and filing fees.................................... 33,785 9,479 2,851
Printing costs.................................................. 22,632 6,820 2,471
Other........................................................... 6,350 1,841 736
Expenses voluntarily reduced.................................... (372,540) (202,291) (64,100)
----------- ----------- -----------
Total Expenses.............................................. 1,405,042 371,617 170,588
----------- ----------- -----------
Net Investment Income........................................... 9,400,284 2,727,723 549,049
----------- ----------- -----------
REALIZED GAINS FROM INVESTMENTS:
Net realized gains from investment transactions................. -- -- 2,297
----------- ----------- -----------
Change in net assets resulting from operations.................. $ 9,400,284 $ 2,727,723 $ 551,346
=========== =========== ===========
</TABLE>
See notes to financial statements.
-21-
<PAGE> 23
QUALIVEST FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
INTERMEDIATE DIVERSIFIED SMALL COMPANIES
BOND FUND BOND FUND VALUE FUND
------------ ----------- ---------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income....................................................... $4,608,408 $ 3,719,393 $ 1,314,432
Dividend income....................................................... -- -- 456,717
---------- ---------- -----------
Total Income...................................................... 4,608,408 3,719,393 1,771,149
---------- ---------- -----------
EXPENSES:
Investment advisory fees.............................................. 434,928 352,463 929,557
Administration fees................................................... 93,944 75,989 151,052
Distribution and shareholder service fees (Class A)................... 594 51 4,100
Distribution and shareholder service fees (Class C)................... 713 -- 3,021
Shareholder service fees (Class Y).................................... 180,447 146,808 286,761
Custodian fees........................................................ 21,679 17,536 34,858
Accounting and transfer agent fees.................................... 63,532 54,707 77,961
Legal and audit fees.................................................. 7,989 8,187 17,654
Organization costs.................................................... 12,410 2,770 8,686
Trustees' fees and expenses........................................... 4,881 3,409 7,002
Registration and filing fees.......................................... 6,719 14,172 16,421
Printing costs........................................................ 7,447 5,890 11,774
Other................................................................. 3,128 2,207 4,416
Expenses voluntarily reduced.......................................... (290,188) (323,913) (286,772)
---------- ---------- -----------
Total Expenses.................................................... 548,223 360,276 1,266,491
---------- ---------- -----------
Net Investment Income................................................. 4,060,185 3,359,117 504,658
---------- ---------- -----------
REALIZED/UNREALIZED GAINS FROM INVESTMENTS:
Net realized gains from investment transactions....................... 993,468 1,934,859 12,232,603
Net unrealized appreciation from investments.......................... 3,083,920 2,567,415 8,048,404
---------- ---------- -----------
Net realized/unrealized gains from investments........................ 4,077,388 4,502,274 20,281,007
---------- ---------- -----------
Change in net assets resulting from operations........................ $8,137,573 $ 7,861,391 $20,785,665
========== ========== ===========
</TABLE>
See notes to financial statements.
-22-
<PAGE> 24
QUALIVEST FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
INTERNATIONAL
LARGE COMPANIES OPTIMIZED OPPORTUNITIES
VALUE FUND STOCK FUND FUND
--------------- ----------- -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income..................................................... $ 300,588 $ 81,562 $ 102,542
Dividend income..................................................... 1,075,274 1,968,662 651,426
Foreign tax withholding............................................. -- -- (105,968)
--------------- ----------- -------------
Total Income.................................................... 1,375,862 2,050,224 648,000
--------------- ----------- -------------
EXPENSES:
Investment advisory fees............................................ 371,833 415,117 256,520
Administration fees................................................. 64,250 107,429 55,014
Distribution and shareholder service fees (Class A)................. 1,943 203 2,409
Distribution and shareholder service fees (Class C)................. 1,808 187 --
Shareholder service fees (Class Y).................................. 121,539 207,307 104,460
Custodian fees...................................................... 14,826 24,793 30,938
Accounting and transfer agent fees.................................. 55,597 69,686 86,781
Legal and audit fees................................................ 7,716 11,400 5,993
Organization costs.................................................. 5,524 2,770 2,586
Trustees' fees and expenses......................................... 3,130 4,883 2,586
Registration and filing fees........................................ 6,790 20,511 9,853
Printing costs...................................................... 5,148 8,462 15,929
Other............................................................... 2,998 3,312 1,292
Expenses voluntarily reduced........................................ (196,838) (374,502) (215,108)
--------------- ----------- -------------
Total Expenses.................................................. 466,264 501,558 359,253
--------------- ----------- -------------
Net Investment Income............................................... 909,598 1,548,666 288,747
--------------- ----------- -------------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment transactions............ 5,564,189 3,860,823 (55,703)
Net realized losses from foreign currency transactions.............. -- -- (182,710)
Net unrealized appreciation from investments........................ 1,537,061 16,050,165 1,609,699
Net unrealized depreciation from foreign currency transactions...... -- -- (2,518)
--------------- ----------- -------------
Net realized/unrealized gains from investments...................... 7,101,250 19,910,988 1,368,768
--------------- ----------- -------------
Change in net assets resulting from operations...................... $ 8,010,848 $21,459,654 $ 1,657,515
=============== ========== ===========
</TABLE>
See notes to financial statements.
-23-
<PAGE> 25
QUALIVEST FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
U.S. TREASURY TAX-FREE
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
----------------------------- ---------------------------- ---------------------------
SIX MONTHS AUGUST 1, SIX MONTHS JANUARY 11, SIX MONTHS JANUARY 9,
ENDED 1994 TO ENDED 1995 TO ENDED 1995 TO
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1996 1995(A) 1996 1995(A) 1996 1995(A)
------------- ------------- ------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED) (UNAUDITED)
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income.......... $ 9,400,284 $ 12,206,607 $ 2,727,723 $ 1,980,315 $ 549,049 $ 611,454
Net realized gains from
investment transactions...... -- 191 -- -- 2,297 176
------------- ------------- ------------ ------------ ------------ ------------
Change in net assets resulting
from operations................ 9,400,284 12,206,798 2,727,723 1,980,315 551,346 611,630
------------- ------------- ------------ ------------ ------------ ------------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment income..... (5,468,000) (7,517,425) (2,067,906) (1,825,946) (521,204) (595,397)
DISTRIBUTIONS TO CLASS Y
SHAREHOLDERS:
From net investment income..... (1,944,701) (3,584,362) (366) (15,926) (619) (251)
DISTRIBUTIONS TO CLASS Q
SHAREHOLDERS:
From net investment income..... (1,987,583) (1,104,820) (659,451) (138,443) (27,226) (15,806)
------------- ------------- ------------ ------------ ------------ ------------
Change in net assets from
shareholder distributions...... (9,400,284) (12,206,607) (2,727,723) (1,980,315) (549,049) (611,454)
------------- ------------- ------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares sold...... 695,524,253 999,519,899 166,312,173 173,929,004 46,078,897 73,695,237
Dividends reinvested........... 7,347,483 7,017,237 2,619,519 1,621,159 544,402 528,777
Cost of shares redeemed........ (656,012,275) (668,028,476) (148,655,363) (92,454,474) (44,225,217) (39,391,696)
------------- ------------- ------------ ------------ ------------ ------------
Change in net assets from share
transactions................... 46,859,461 338,508,660 20,276,329 83,095,689 2,398,082 34,832,318
------------- ------------- ------------ ------------ ------------ ------------
Change in net assets............. 46,859,461 338,508,851 20,276,329 83,095,689 2,400,379 34,832,494
NET ASSETS:
Beginning of period............ 338,508,851 -- 83,095,689 -- 34,832,494 --
------------- ------------- ------------ ------------ ------------ ------------
End of period.................. $ 385,368,312 $ 338,508,851 $ 103,372,018 $ 83,095,689 $ 37,232,873 $ 34,832,494
============= ============= ============ ============ ============ ============
SHARE TRANSACTIONS:
Issued......................... 695,524,253 999,519,899 166,312,173 173,929,004 46,078,897 73,695,237
Reinvested..................... 7,347,483 7,017,236 2,619,519 1,621,159 544,402 528,778
Redeemed....................... (656,012,275) (668,028,475) (148,655,363) (92,454,474) (44,225,217) (39,391,697)
------------- ------------- ------------ ------------ ------------ ------------
Change in shares................. 46,859,461 338,508,660 20,276,329 83,095,689 2,398,082 34,832,318
============= ============= ============ ============ ============ ============
- ---------
<FN>
(a) Period from commencement of operations.
</TABLE>
See notes to financial statements.
-24-
<PAGE> 26
QUALIVEST FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERMEDIATE DIVERSIFIED SMALL COMPANIES
BOND FUND BOND FUND VALUE FUND
---------------------------- -------------------------- ---------------------------
SIX MONTHS AUGUST 1, SIX MONTHS MAY 2, SIX MONTHS AUGUST 1,
ENDED 1994 TO ENDED 1995 TO ENDED 1994 TO
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1996 1995(A) 1996 1995(A) 1996 1995(A)
------------ ------------- ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED) (UNAUDITED)
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income............. $ 4,060,185 $ 12,847,168 $ 3,359,117 $ 1,433,251 $ 504,658 $ 2,051,252
Net realized gains (losses) from
investment transactions......... 993,468 (484,433) 1,934,859 1,259,526 12,232,603 12,935,310
Net change in unrealized
appreciation from investments... 3,083,920 2,350,155 2,567,415 1,612,738 8,048,404 39,151,611
------------- ------------ ------------ ------------ ------------ ------------
Change in net assets resulting from
operations........................ 8,137,573 14,712,890 7,861,391 4,305,515 20,785,665 54,138,173
------------- ------------ ------------ ------------ ------------ ------------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment income........ (12,837) (12,070) (1,072) -- (5,597) (3,886)
From net realized gains from
investment transactions......... (119) -- (1,356) -- (266,703) (1,361)
DISTRIBUTIONS TO CLASS Y
SHAREHOLDERS:
From net investment income........ (3,997,236) (12,523,176) (3,226,710) (1,211,429) (691,135) (1,843,319)
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........ (3,343) (4,882) -- -- (111) (809)
From net realized gains from
investment transactions......... (34) -- -- -- (52,906) (505)
------------- ------------ ------------ ------------ ------------ ------------
Change in net assets from
shareholder distributions......... (4,047,301) (12,540,128) (4,952,947) (1,211,429) (18,894,952) (2,668,697)
------------- ------------ ------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares sold......... 29,152,135 286,664,786 43,945,595 95,041,030 67,199,424 199,455,293
Dividends reinvested.............. 3,990,753 12,471,729 4,936,114 1,211,429 18,817,913 2,664,777
Cost of shares redeemed........... (27,455,453) (159,396,537) (3,893,583) -- (34,511,688) (42,394,928)
------------- ------------ ------------ ------------ ------------ ------------
Change in net assets from share
transactions...................... 5,687,435 139,739,978 44,988,126 96,252,459 51,505,649 159,725,142
------------- ------------ ------------ ------------ ------------ ------------
Change in net assets................ 9,777,707 141,912,740 47,896,570 99,346,545 53,396,362 211,194,618
NET ASSETS:
Beginning of period............... 141,912,740 -- 99,346,545 -- 211,194,618 --
------------- ------------ ------------ ------------ ------------ ------------
End of period..................... $151,690,447 $ 141,912,740 $147,243,115 $99,346,545 $264,590,980 $211,194,618
============= ============ ============ ============ ============ ============
SHARE TRANSACTIONS:
Issued............................ 2,835,181 28,723,642 4,193,249 9,499,716 4,962,829 19,579,283
Reinvested........................ 389,337 1,261,928 470,710 116,790 1,468,537 255,335
Redeemed.......................... (2,679,623) (16,010,334) (372,746) -- (2,525,151) (3,901,063)
------------- ------------ ------------ ------------ ------------ ------------
Change in shares.................... 544,895 13,975,236 4,291,213 9,616,506 3,906,215 15,933,555
============= ============ ============ ============ ============ ============
- ---------
<FN>
(a) Period from commencement of operations.
</TABLE>
See notes to financial statements.
-25-
<PAGE> 27
QUALIVEST FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LARGE COMPANIES OPTIMIZED INTERNATIONAL
VALUE FUND STOCK FUND OPPORTUNITIES FUND
--------------------------- --------------------------- --------------------------
SIX MONTHS AUGUST 1, SIX MONTHS MAY 2, SIX MONTHS JULY 3,
ENDED 1994 TO ENDED 1995 TO ENDED 1995 TO
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1996 1995(A) 1996 1995(A) 1996 1995(A)
------------ ------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income.............. $ 909,598 $ 2,149,380 $ 1,548,666 $ 830,048 $ 288,747 $ 48,989
Net realized gains (losses) from
investment transactions.......... 5,564,189 5,364,361 3,860,823 589,477 (55,703) --
Net realized losses from foreign
currency transactions............ -- -- -- -- (182,710) (347)
Net change in unrealized
appreciation from investments.... 1,537,061 14,428,974 16,050,165 11,642,308 1,609,699 2,558,463
Net change in unrealized
appreciation (depreciation) from
foreign currency................. -- -- -- -- (2,518) 146
------------ ------------ ------------ ------------ ----------- -----------
Change in net assets resulting from
operations......................... 8,010,848 21,942,715 21,459,654 13,061,833 1,657,515 2,607,251
------------ ------------ ------------ ------------ ----------- -----------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment income......... (15,237) (6,010) (1,602) -- (4,112) --
From net realized gains from
investment transactions.......... (129,974) (728) (4,341) -- (38) --
DISTRIBUTIONS TO CLASS Y
SHAREHOLDERS:
From net investment income......... (1,074,280) (1,808,153) (1,860,358) (304,905) (218,380) --
From net realized gains from
investment transactions.......... (7,767,356) (329,398) (2,699,756) -- (1,604) --
DISTRIBUTIONS TO CLASS C
SHAREHOLDERS:
From net investment income......... (2,300) (1,845) (319) (19) (1) --
From net realized gains from
investment transactions.......... (27,868) (279) (861) -- -- --
------------ ------------ ------------ ------------ ----------- -----------
Change in net assets from shareholder
distributions...................... (9,017,015) (2,146,413) (4,567,237) (304,924) (224,135) --
------------ ------------ ------------ ------------ ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares sold.......... 17,658,887 139,900,941 44,330,949 135,984,845 62,129,758 57,498,097
Dividends reinvested............... 8,887,525 2,137,516 4,529,601 303,589 201,034 --
Cost of shares redeemed............ (17,445,166) (62,380,402) (8,871,522) (207,881) (4,817,482) (12,300)
------------ ------------ ------------ ------------ ----------- -----------
Change in net assets from share
transactions....................... 9,101,246 79,658,055 39,989,028 136,080,553 57,513,310 57,485,797
------------ ------------ ------------ ------------ ----------- -----------
Change in net assets................. 8,095,079 99,454,357 56,881,445 148,837,462 58,946,690 60,093,048
NET ASSETS:
Beginning of period................ 99,454,357 -- 148,837,462 -- 60,093,048 --
------------ ------------ ------------ ------------ ----------- -----------
End of period...................... $107,549,436 $ 99,454,357 $205,718,907 $148,837,462 $119,039,738 $60,093,048
============ ============ ============ ============ =========== ===========
SHARE TRANSACTIONS:
Issued............................. 1,475,135 13,756,476 3,816,241 13,583,334 5,945,089 5,735,248
Reinvested......................... 786,934 208,032 393,936 29,590 20,063 --
Redeemed........................... (1,443,554) (5,834,893) (764,498) (19,190) (470,352) (1,188)
------------ ------------ ------------ ------------ ----------- -----------
Change in shares..................... 818,515 8,129,615 3,445,679 13,593,734 5,494,800 5,734,060
============ ============ ============ ============ =========== ===========
<FN>
- ---------
(a) Period from commencement of operations.
</TABLE>
See notes to financial statements.
-26-
<PAGE> 28
QUALIVEST FUNDS
MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMERCIAL PAPER (75.2%):
Automotive (7.2%):
4,000,000 Ford Motor Credit Co.,
5.62%, 2/16/96............ $ 3,990,633
4,000,000 Ford Motor Credit Co.,
5.66%, 2/23/96............ 3,986,164
4,000,000 Ford Motor Credit Co.,
5.52%, 3/4/96............. 3,980,373
4,000,000 Ford Motor Credit Co.,
5.45%, 3/25/96............ 3,967,906
4,000,000 Toyota Motor Credit Corp.,
5.33%, 3/4/96............. 3,981,049
4,000,000 Toyota Motor Credit Corp.,
5.35%, 3/15/96............ 3,974,439
4,000,000 Toyota Motor Credit Corp.,
5.35%, 3/18/96............ 3,972,656
------------
27,853,220
------------
Banking (9.4%):
8,000,000 Banc One Corp.,
5.68%, 2/9/96............. 7,989,902
3,500,000 National Westminster CDA,
5.52%, 4/30/96............ 3,452,237
4,000,000 Republic NY Corp.,
5.41%, 4/12/96............ 3,957,321
4,000,000 Republic NY Corp.,
5.20%, 4/30/96............ 3,948,578
5,000,000 Republic NY Corp.,
5.25%, 5/15/96............ 4,924,167
4,000,000 Toronto-Dominion Holdings,
Inc.,
5.33%, 5/21/96............ 3,970,981
4,000,000 Toronto-Dominion Holdings,
Inc.,
5.33%, 3/25/96............ 3,968,612
4,000,000 Toronto-Dominion Holdings,
Inc.,
5.45%, 4/1/96............. 3,964,133
------------
36,175,931
------------
Beverages (1.0%):
4,000,000 PepsiCo, Inc., 5.58%,
2/2/96.................... 3,999,380
------------
Computers (1.0%):
4,000,000 Intel Corp.,
5.34%, 3/29/96............ 3,966,180
------------
Diversified (1.0%):
4,000,000 Rockwell International
Corp.,
5.35%, 3/20/96............ 3,971,467
------------
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMERCIAL PAPER, CONTINUED:
Electrical & Electronic (3.1%):
4,000,000 Hewlett-Packard Co.,
5.34%, 3/13/96............ $ 3,975,673
4,000,000 Hewlett-Packard Co.,
5.23%, 4/23/96............ 3,952,349
4,000,000 Hewlett-Packard Co.,
5.25%, 5/14/96............ 3,939,917
------------
11,867,939
------------
Financial Services (19.4%):
4,000,000 American General Finance,
5.56%, 3/5/96............. 3,979,613
3,000,000 Cargill, Inc.,
5.51%, 2/16/96............ 2,993,113
4,000,000 Cargill, Inc.,
5.20%, 3/29/96............ 3,967,067
4,000,000 Cargill, Inc.,
5.28%, 4/16/96............ 3,956,000
4,000,000 CIT Group Holdings,
5.43%, 2/29/96............ 3,983,107
4,000,000 CIT Group Holdings,
5.38%, 3/8/96............. 3,978,480
18,000,000 General Electric Capital
Corp.,
5.46%*, 2/5/96**.......... 18,000,000
4,000,000 National Rural Utilities,
5.62%, 3/6/96............. 3,978,769
8,000,000 National Rural Utilities,
5.58%, 3/12/96............ 7,950,400
4,000,000 National Rural Utilities,
5.55%, 3/18/96............ 3,971,335
4,000,000 Transamerica Finance Corp.,
5.60%, 2/1/96............. 4,000,000
7,000,000 Transamerica Finance Corp.,
5.53%*, 2/6/96**.......... 7,000,000
3,000,000 Transamerica Finance Corp.,
5.57%, 2/15/96............ 2,993,502
4,000,000 Transamerica Finance Corp.,
5.25%, 4/3/96............. 3,963,833
------------
74,715,219
------------
</TABLE>
Continued
-27-
<PAGE> 29
QUALIVEST FUNDS
MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMERCIAL PAPER, CONTINUED:
Insurance (11.3%):
4,000,000 Metlife Funding, Inc.,
5.63%, 2/5/96............. $ 3,997,498
4,000,000 Metlife Funding, Inc.,
5.47%, 2/13/96............ 3,992,707
4,000,000 Metlife Funding, Inc.,
5.63%, 2/20/96............ 3,988,114
4,628,000 Metlife Funding, Inc.,
5.65%, 2/21/96............ 4,613,473
6,000,000 SAFECO Credit Co.,
5.68%, 2/5/96............. 5,996,213
5,000,000 SAFECO Credit Co.,
5.65%, 2/8/96............. 4,994,507
4,000,000 USAA Capital Corp.,
5.64%, 2/6/96............. 3,996,867
4,000,000 USAA Capital Corp.,
5.50%, 2/13/96............ 3,992,667
3,800,000 USAA Capital Corp.,
5.45%, 2/27/96............ 3,785,043
4,000,000 USAA Capital Corp.,
5.35%, 3/12/96............ 3,976,222
------------
43,333,311
------------
Leasing (2.1%):
4,000,000 International Lease Finance
Corp.,
5.67%, 2/7/96............. 3,996,220
4,000,000 International Lease Finance
Corp.,
5.28%, 5/9/96............. 3,942,507
------------
7,938,727
------------
Office Equipment & Services (1.0%):
4,000,000 Pitney Bowes Credit Corp.,
5.65%, 2/2/96............. 3,999,372
------------
Printing & Publishing (1.0%):
4,000,000 McGraw-Hill, Inc.,
5.35%, 3/19/96............ 3,972,061
------------
Transportation & Shipping (3.9%):
11,000,000.. Paccar Leasing,
5.67%*, 2/20/96** 11,000,000
4,000,000 United Parcel Service,
5.50%, 2/22/96............ 3,987,167
------------
14,987,167
------------
Telecommunications (11.4%):
4,000,000 AT&T Corp.,
5.34%, 2/28/96............ 3,983,980
8,000,000 AT&T Corp.,
5.59%, 3/12/96............ 7,950,311
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMERCIAL PAPER, CONTINUED:
4,000,000 AT&T Corp.,
5.34%, 3/22/96............ $ 3,970,333
4,000,000 Ameritech Capital Funding
Corp.,
5.60%, 2/6/96............. 3,996,889
4,000,000 Ameritech Capital Funding
Corp.,
5.70%, 2/12/96............ 3,993,033
4,000,000 Ameritech Capital Funding
Corp.,
5.29%, 6/14/96............ 3,921,238
4,000,000 Bell Atlantic,
5.67%, 2/22/96............ 3,986,770
4,000,000 Bell South Telecom,
5.36%, 3/7/96............. 3,979,154
4,000,000 Bell South Telecom,
5.34%, 3/11/96............ 3,976,860
4,000,000 GTE Northwest,
5.65%, 2/23/96............ 3,986,187
------------
43,744,755
------------
Utilities--Electric (2.4%)
5,248,000 PacifiCorp,
5.45%, 2/26/96............ 5,228,138
4,000,000 PacifiCorp,
5.40%, 3/8/96............. 3,978,400
------------
9,206,538
------------
Total Commercial Paper 289,731,267
------------
FUNDING AGREEMENTS (3.4%):
3,000,000 Commonwealth Life Insurance
Funding Agreement,
5.98%*, 2/1/96............ 3,000,000
10,000,000 Sun Life Insurance Co. of
America, 5.75%*, 8/1/96... 10,000,000
------------
Total Funding Agreements 13,000,000
------------
U.S. GOVERNMENT AGENCIES (6.2%):
Federal Home Loan Mortgage Corp.:
4,000,000 5.55%, 2/8/96............... 3,995,683
4,000,000 5.27%, 4/10/96.............. 3,959,597
------------
7,955,280
------------
</TABLE>
Continued
-28-
<PAGE> 30
QUALIVEST FUNDS
MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ---------- ---------------------------- ------------
<S> <C> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED
Federal National Mortgage Assoc.:
4,000,000 5.58%, 2/14/96.............. $ 3,991,940
4,000,000 5.56%, 3/6/96............... 3,979,298
4,000,000 5.18%, 4/18/96.............. 3,955,683
------------
11,926,921
------------
Tennessee Valley Authority:
4,000,000 5.18%, 4/25/96.............. 3,951,654
------------
Total U.S. Government Agencies 23,833,854
------------
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ---------- ---------------------------- ------------
<S> <C> <C>
INVESTMENT COMPANIES (7.3%):
14,000,000 AIM Short-Term Prime Fund... $ 14,000,000
14,000,000 Lehman Brothers Prime
Fund...................... 14,000,000
------------
Total Investment Companies 28,000,000
------------
Investments, at value 354,565,122
------------
REPURCHASE AGREEMENTS (8.4%):
32,234,076 Merrill Lynch,
5.68%*, 2/1/96(b)......... 32,234,076
------------
Total (Cost--$386,799,198)(a) $386,799,198
============
</TABLE>
- ---------
Percentages indicated are based on net assets of $385,368,312
(a) Cost for federal income tax and financial reporting purposes are the same.
(b) Fully collateralized by U.S. Treasury Strips.
* 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 January 31, 1996.
** Put and demand features exist allowing the Fund to require the repurchase of
the instrument within variable time periods including daily, weekly,
monthly, or semiannually.
See notes to financial statements.
-29-
<PAGE> 31
QUALIVEST FUNDS
U.S. TREASURY MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ---------- ---------------------------- ------------
<S> <C> <C>
U.S. TREASURY BILLS (60.6%):
6,000,000 2/8/96...................... $ 5,993,764
9,000,000 2/22/96..................... 8,971,974
9,000,000 3/7/96...................... 8,953,416
8,000,000 3/14/96..................... 7,950,475
5,000,000 3/21/96..................... 4,963,978
3,000,000 3/21/96..................... 2,978,338
3,000,000 3/28/96..................... 2,975,500
4,000,000 4/4/96...................... 3,964,090
4,000,000 4/11/96..................... 3,959,556
4,000,000 4/15/96..................... 4,032,460
4,000,000 4/18/96..................... 3,955,682
4,000,000 4/25/96..................... 3,951,280
-------------
Total U.S. Treasury Bills 62,650,513
-------------
U.S. TREASURY NOTES (30.0%):
7,000,000 4.63%, 2/15/96.............. 6,997,396
8,000,000 4.63%, 2/29/96.............. 7,994,261
4,000,000 5.13%, 3/31/96.............. 3,996,845
3,000,000 7.75%, 3/31/96.............. 3,010,128
3,000,000 5.50%, 4/30/96.............. 3,000,302
6,000,000 5.86%, 5/31/96.............. 6,007,889
-------------
Total U.S. Treasury Notes 31,006,821
-------------
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ---------- ---------------------------- ------------
<S> <C> <C>
INVESTMENT COMPANIES (9.2%):
6,515,698 Dreyfus Treasury Prime Cash
Management Money Market
Fund--Class A............. $ 6,515,698
3,000,000 Provident Treasury Trust
Fund...................... 3,000,000
-------------
Total Investment Companies 9,515,698
-------------
Total (Cost--$103,173,032)(a) $ 103,173,032
===========
- ---------
<FN>
Percentages indicated are based on net assets of $103,372,018.
(a) Cost for federal income tax and financial reporting purposes are the same.
</TABLE>
See notes to financial statements.
-30-
<PAGE> 32
QUALIVEST FUNDS
TAX-FREE MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------- ------------------------------------------------------------------------------------------ -----------
<S> <C> <C>
MUNICIPAL BONDS (95.1%):
Alabama (2.7%):
1,000,000 Alabama Special Care Facility Financing Authority, Montgomery Hospital Revenue, 3.20%,
4/1/15, Insured by FGIC, LOC: Barclays Bank(b).......................................... $ 1,000,000
-----------
Alaska (4.0%):
1,500,000 Alaska Housing Finance Corp., Series C, 3.25%, 6/1/26(b).................................. 1,500,000
-----------
California (6.7%):
1,500,000 Contra Costa, California, Transit Authority Sales, 2.90%, 3/1/09(b)....................... 1,500,000
1,000,000 County of Solano, California, Tax & Revenue, 4.50%, 11/1/96............................... 1,004,688
-----------
2,504,688
-----------
Florida (2.7%):
1,000,000 Florida Housing Finance Agency, Series EE, 3.35%, 9/1/08(b)............................... 1,000,000
-----------
Illinois (6.5%):
1,000,000 Illinois Health, 2012, 3.15%, 2/15/96(c).................................................. 1,000,000
400,000 Illinois State, 7.75%, 2/1/08............................................................. 409,978
1,000,000 Illinois State Toll Highway Authority, 3.05%, 1/1/10(b)................................... 1,000,000
-----------
2,409,978
-----------
Louisiana (2.7%):
1,000,000 Louisiana PFA (Sisters of Charity), 3.10%, 2/7/96 LOC: Credit Suisse(c)................... 1,000,000
-----------
Massachusetts (8.1%):
1,500,000 Commonwealth of Massachusetts Dedicated Income Tax Bond Series, 90B, 3.70%, 12/1/97(b).... 1,500,000
1,500,000 Massachusetts Bay Transportation Authority, 5.65%, 3/1/14 (General Transportation
System--1984 A)......................................................................... 1,500,000
-----------
3,000,000
-----------
Maryland (4.0%):
1,500,000 Montgomery County, Maryland Housing Opportunity, Issue I, 3.60%, 11/1/20(b)............... 1,500,000
-----------
Minnesota (3.5%):
1,300,000 Minneapolis, Minnesota, General Obligation, 3.25%, 10/1/24(b)............................. 1,300,000
-----------
Missouri (2.7%):
1,000,000 Columbia, Missouri, 3.15%, 6/1/08, LOC: Toronto Dominion Bank(b).......................... 1,000,000
-----------
Nebraska (2.7%):
1,000,000 Nebraska Educational Facility Authority, 3.50%, 12/1/00(b)................................ 1,000,000
-----------
Nevada (2.7%):
1,000,000 Clark County, Nevada, Airport Improvement, Series A, 3.15%, 7/1/12(b)..................... 1,000,000
-----------
New York (1.4%):
500,000 New York State Dorm Authority Revenue, 7.50%, 7/1/06(d)................................... 516,894
-----------
North Carolina (2.7%):
1,000,000 North Carolina Eastern, 3.15%, 2/6/96(c).................................................. 1,000,000
-----------
</TABLE>
Continued
-31-
<PAGE> 33
QUALIVEST FUNDS
TAX-FREE MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------- ------------------------------------------------------------------------------------------ -----------
<S> <C> <C>
MUNICIPAL BONDS, CONTINUED:
Oklahoma (3.5%):
1,300,000 Garfield County, Oklahoma Industrial Authority, Pollution Control Revenue, Oklahoma Gas &
Electric Co., Project A, 3.35%, 1/1/25(b)............................................... $ 1,300,000
-----------
Oregon (17.1%):
900,000 Franciscan Health, Oregon, 4.10%, 12/1/24, LOC: Toronto Dominion Bank(b).................. 900,000
1,000,000 Marion County Solid Waste & Electric Revenue, 4.25%, 10/1/96.............................. 1,002,242
515,000 Oregon State, 12.50%, 9/1/96.............................................................. 551,838
295,000 Oregon Sate Pollution Control, 4.70%, 11/1/96............................................. 297,466
1,500,000 Oregon State, Series 73, 3.45%, 12/1/17(b)................................................ 1,500,000
1,500,000 State of Oregon, Health, Housing, Educational, 3.20%, 12/1/15(b).......................... 1,500,000
600,000 Umatilla County, Oregon, Hospital Facility Authority, Hospital Revenue, Franciscan Health
Systems, Series B, Revenue Bonds, 3.75%, 12/1/24(b)..................................... 600,000
-----------
6,351,546
-----------
Pennsylvania (3.2%):
1,200,000 Canon McMillan School District, Series A, 7.60%, 3/1/96(d)................................ 1,203,801
-----------
Tennessee (2.7%):
1,000,000 Clarksville, Tennessee, Public Building Authority, 3.05%, 12/1/00(b)...................... 1,000,000
-----------
Texas (4.0%):
1,500,000 Texas State Tax & Revenue, Anticipation Notes, Series A, 4.75%, 8/30/96................... 1,505,826
-----------
Virginia (2.7%):
1,000,000 Fairfax County, Virginia, Industrial Development, 3.25%, 10/1/16(b)....................... 1,000,000
-----------
Washington (6.2%):
1,000,000 Seattle Muni Light & Power, 3.35%, 2/22/96(c)............................................. 1,000,000
1,300,000 Seattle, Washington, Water System Revenue, 3.20%, 9/1/25(b)............................... 1,300,000
-----------
2,300,000
-----------
Wisconsin (2.7%):
1,000,000 Milwaukee, Wisconsin, Series CB GO, 6.25%, 6/15/96........................................ 1,009,782
-----------
Total Municipal Bonds 35,402,515
-----------
</TABLE>
Continued
-32-
<PAGE> 34
QUALIVEST FUNDS
TAX-FREE MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- --------- ------------------------------------------------------------------------------------------ -----------
<S> <C> <C>
INVESTMENT COMPANIES (6.1%):
1,768,378 AIM Tax-Free Cash Reserve Money Market Fund............................................... $ 1,768,378
500,000 SEI Tax-Free Money Market Fund............................................................ 500,000
-----------
Total Investment Companies 2,268,378
-----------
Total (Cost--$37,670,893)(a) $37,670,893
==========
- ---------
<FN>
Percentages indicated are based on net assets of $37,232,873
(a) Cost for federal tax and financial reporting purposes are the same.
(b) Denotes certain municipal securities that may be sold back to the issuer or
the parties not affiliated with the issuer at par, at the option of the fund
or upon specified dates prior to maturity. The effective maturity is the
next possible sell option date or the next interest rate adjustment date,
rather than the stated final maturity. Variable rate instruments are
adjusted periodically based on current market conditions. The tax rate
reflected is the rate as of January 31, 1996.
(c) Tax-Free Commercial Paper.
(d) Prerefunded to various dates prior to maturity.
</TABLE>
See notes to financial statements.
-33-
<PAGE> 35
QUALIVEST FUNDS
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- --------- ---------------------------- ------------
<S> <C> <C>
CORPORATE BONDS (24.4%):
Aerospace (0.8%):
1,000,000 Lockheed Corp., 5.88%,
3/15/98................... $ 1,005,000
------------
Automotive (2.2%):
1,000,000 Ford Motor Credit, 5.75%,
1/25/01................... 998,750
750,000 General Motors Acceptance
Corp., 8.63%, 6/15/99..... 817,500
1,000,000 General Motors Acceptance
Corp., 7.25%, 5/15/03..... 1,058,750
------------
2,875,000
------------
Banking (1.7%):
1,000,000 Norwest, 6.75%, 5/12/00..... 1,040,000
1,000,000 Westpac Banking, 9.13%,
8/15/01................... 1,148,750
------------
2,188,750
------------
Financial Services (2.3%):
1,000,000 Associates Corp., N.A.,
6.00%, 3/15/00............ 1,010,000
1,000,000 General Electric Capital
Corp., 5.47%, 1/19/99..... 1,003,750
1,000,000 US West Capital Funding,
6.46%, 12/2/02............ 1,022,500
------------
3,036,250
------------
Governments--Foreign (1.6%):
1,000,000 Republic of Ireland, 7.88%,
12/1/01................... 1,105,000
943,000 Victoria Public Authority,
8.45%, 10/1/01............ 1,067,947
------------
2,172,947
------------
Insurance (2.3%):
943,000 SAFECO Credit Corp., 7.88%,
4/1/05.................... 1,036,121
943,000 St. Paul Cos., 9.38%,
6/15/97................... 993,601
943,000 Travelers Corp., 7.75%,
6/15/99................... 1,003,117
------------
3,032,839
------------
Manufacturing--Consumer Goods (0.8%):
1,000,000 VF Corp., 7.60%, 4/1/04..... 1,066,250
------------
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- --------- ---------------------------- ------------
<S> <C> <C>
CORPORATE BONDS, CONTINUED:
Natural Gas Transmission & Distribution (1.6%):
1,000,000 Enron Oil & Gas, 7.63%,
9/10/04... $ 1,091,250
1,000,000 Pacific Gas Transmission, 6.64%,
7/5/00.... 1,028,750
------------
2,120,000
------------
Oil & Gas Exploration & Production Services (3.2%):
1,000,000 Baker Hughes, Inc., 7.63%,
2/15/99... 1,050,000
1,000,000 Occidental Petroleum, 5.84%,
11/9/98... 1,005,000
1,000,000 Shell Oil Co., 6.63%,
7/1/99.... 1,036,250
1,000,000 Union Oil of California, 8.75%,
8/15/01... 1,131,250
------------
4,222,500
------------
Pharmaceuticals (1.5%):
1,000,000 Baxter International, 7.50%,
5/1/97.... 1,023,750
1,000,000 Johnson & Johnson, 8.00%,
9/1/98.... 1,016,250
------------
2,040,000
------------
Railroads (0.8%):
1,000,000 Union Pacific Co., 6.13%,
1/15/04... 992,500
------------
Retail Stores (1.6%):
1,000,000 Price/Costco, Inc., 7.13%,
6/15/05... 1,042,500
1,000,000 Wal-Mart Stores, 6.75%,
5/15/02... 1,046,250
------------
2,088,750
------------
Utility--Electric (3.2%):
1,057,000 Consolidated Edison, 6.38%,
4/1/03.... 1,072,855
1,000,000 National Rural Utilities, 8.50%,
2/15/98... 1,058,750
943,000 PacifiCorp, 6.75%,
4/1/05.... 979,541
1,057,000 Public Service Electric & Gas, 7.63%,
2/1/00.... 1,124,384
------------
4,235,530
------------
</TABLE>
Continued
-34-
<PAGE> 36
QUALIVEST FUNDS
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- --------- ---------------------------- ------------
<S> <C> <C>
CORPORATE BONDS, CONTINUED:
Utility--Telephone (0.8%):
1,000,000 Nippon Telephone, 9.50%,
7/27/98................... $ 1,096,250
------------
Total Corporate Bonds 32,172,566
------------
U.S. GOVERNMENT AGENCIES (9.5%):
Federal Farm Credit Bank:
943,000 11.90%, 10/20/97............ 1,045,457
1,000,000 5.87%, 11/8/00.............. 1,015,230
Federal Home Loan Mortgage Corp.:
943,000 7.82%, 1/24/97.............. 966,830
1,358,000 7.13%, 7/21/99.............. 1,431,658
Federal National Mortgage Assoc.:
943,000 8.80%, 7/25/97.............. 993,054
3,000,000 6.37%, 7/27/00.............. 3,053,610
2,000,000 6.06%, 2/3/06............... 1,993,020
Private Export Funding Corp.:
1,000,000 5.75%, 4/30/98.............. 1,011,250
Student Loan Marketing Assoc.:
943,000 7.72%, 1/25/99.............. 1,005,276
------------
Total U.S. Government Agencies 12,515,385
------------
U.S. TREASURY NOTES (76.9%):
8,602,000 6.75%, 5/31/97.............. 8,799,588
5,660,000 5.75%, 10/31/97............. 5,735,448
4,000,000 6.13%, 5/15/98.............. 4,097,520
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- --------- ---------------------------- ------------
<S> <C> <C>
U.S. TREASURY NOTES, CONTINUED:
6,716,000 5.13%, 11/30/98............. $ 6,728,559
5,747,000 6.38%, 1/15/99............. 5,953,375
7,216,000 7.13%, 9/30/99............. 7,683,092
3,309,000 7.75%, 12/31/99............. 3,605,486
7,587,000 6.38%, 1/15/00............. 7,904,440
8,300,000 6.13%, 7/31/00............. 8,589,255
6,000,000 5.75%, 10/31/00............. 6,120,240
1,871,000 8.00%, 5/15/01............. 2,102,705
6,215,000 7.50%, 11/15/01............. 6,877,891
7,772,000 6.38%, 8/15/02............. 8,179,719
2,000,000 6.25%, 2/15/03............. 2,091,160
5,000,000 5.88%, 2/15/04............. 5,107,450
3,000,000 7.25%, 5/15/04............. 3,328,680
4,700,000 6.50%, 5/15/05............. 4,996,194
3,200,000 6.50%, 8/15/05............. 3,406,080
------------
Total U.S. Treasury Notes 101,306,882
------------
Investments, at value 145,994,833
------------
REPURCHASE AGREEMENTS (4.3%):
5,671,649 Merrill Lynch, 5.68%,
2/1/96(b)... 5,671,649
------------
Total (Cost--$146,232,407)(a) $151,666,482
============
<FN>
- ---------
Percentages indicated are basedon net assets of $151,690,447.
(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 $4,000. Cost for federal income tax purposes differs from
value by net unrealized appreciation of securities as follows:
Unrealized appreciation.... $5,437,253
Unrealized depreciation.... (7,178)
----------
Net unrealized
appreciation............. $5,430,075
==========
</TABLE>
(b) Fully collateralized by U.S. Treasury Strips.
See notes to financial statements.
-35-
<PAGE> 37
QUALIVEST FUNDS
DIVERSIFIED BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- --------- ----------------------------- ------------
<S> <C> <C>
CORPORATE BONDS (15.7%):
Automotive (0.7%):
1,000,000 Ford Motor Credit, 5.75%,
1/25/01.................... $ 998,750
------------
Banking (0.8%):
1,000,000 Westpac Banking, 9.13%,
8/15/01.................... 1,148,750
------------
Beverages (1.4%):
1,000,000 Anheuser Busch, 7.00%,
12/1/25.................... 1,021,250
1,000,000 PepsiCo Inc., 6.80%,
5/15/00.................... 1,043,750
------------
2,065,000
------------
Financial Services (3.5%):
1,000,000 Associates Corp. N.A., 6.75%,
7/15/97.................... 1,020,130
1,000,000 Commercial Credit Co., 6.38%,
9/15/02.................... 1,025,000
1,000,000 General Electric Capital,
5.47%, 1/19/99............. 1,003,750
1,000,000 General Motors Acceptance
Corp., 7.00%, 9/15/02...... 1,050,000
1,000,000 Norwest Financial, 6.25%,
12/15/07................... 1,001,250
------------
5,100,130
------------
Forest Products (0.7%):
1,000,000 Weyerhauser Co., 7.25%,
7/1/13..................... 1,066,250
------------
Health Care Products (0.8%):
1,000,000 Johnson & Johnson, 8.25%,
11/9/04.................... 1,143,750
------------
Industrial Goods & Services (0.7%):
1,000,000 Hanson Overseas, 6.75%,
9/15/05.................... 1,027,500
------------
Insurance (0.8%):
1,000,000 SAFECO Credit Corp., 7.88%,
4/1/05..................... 1,098,750
------------
Manufacturing--Consumer Goods (0.7%):
1,000,000 VF Corp., 7.60%, 4/1/04...... 1,066,250
------------
Natural Gas Transmission & Distribution (0.7%):
1,000,000 Enron Corp., 7.13%,
5/15/07.................... 1,058,750
------------
Oil & Gas Utility (0.7%):
1,000,000 Occidental Petroleum, 6.39%,
11/9/00.................... 1,020,000
------------
Railroads (0.7%):
997,604 Conrail, Inc., 6.76%,
5/25/15.................... 1,044,991
------------
Retail Stores (1.4%):
1,000,000 Price/Costco, Inc., 7.13%,
6/15/05.................... 1,042,500
1,000,000 Wal-Mart Stores, 6.75%,
5/15/02.................... 1,046,250
------------
2,088,750
------------
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
----------------------------- ------------
<S> <C> <C>
CORPORATE BONDS, CONTINUED:
Utility--Electric (1.4%):
1,000,000 Pacific Gas Transmission,
7.10%, 6/1/05.............. $ 1,055,000
1,000,000 PacifiCorp, 6.75%, 4/1/05.... 1,038,750
------------
2,093,750
------------
Utility--Telephone (0.7%):
1,000,000 U.S. West Communications,
7.50%, 6/15/23............. 1,036,250
------------
Total Corporate Bonds 23,057,621
------------
U.S. GOVERNMENT AGENCIES (15.7%):
Federal Farm Credit Banks:
1,000,000 7.06%, 5/24/10............... 1,089,400
Federal National Mortgage Assoc.:
1,000,000 7.05%, 11/12/02.............. 1,074,830
2,000,000 6.44%, 6/21/05............... 2,078,700
2,000,000 6.54%, 10/3/05............... 2,101,120
3,248,888 6.50%, 2/1/09................ 3,272,832
3,797,430 6.50%, 6/1/10................ 3,825,721
1,000,000 6.50%, 1/13/11............... 1,002,020
Government National Mortgage Assoc.:
551,325 7.00%, 10/15/07.............. 565,433
410,078 7.00%, 10/15/07.............. 420,568
200,656 7.00%, 5/15/08............... 205,753
721,514 7.00%, 7/15/08............... 739,949
940,129 7.00%, 6/15/09............... 964,563
3,838,463 7.00%, 7/15/23............... 3,886,981
1,911,909 6.50%, 4/15/24............... 1,898,162
------------
Total U.S. Government Agencies 23,126,032
------------
U.S. TREASURY BONDS (6.7%):
3,450,000 7.25%, 5/15/16............... 3,909,954
5,800,000 6.25%, 8/15/23............... 5,903,762
------------
Total U.S.Treasury Bonds 9,813,716
------------
U.S. TREASURY NOTES (56.6%):
4,500,000 6.75%, 5/31/97............... 4,603,365
6,000,000 5.63%, 1/31/98............... 6,077,340
9,500,000 5.13%, 11/30/98.............. 9,517,765
5,500,000 6.50%, 4/30/99............... 5,727,150
8,350,000 7.13%, 9/30/99............... 8,890,496
9,000,000 6.75%, 4/30/00............... 9,515,250
6,000,000 6.13%, 7/31/00............... 6,209,100
</TABLE>
Continued
-36-
<PAGE> 38
QUALIVEST FUNDS
DIVERSIFIED BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- --------- ----------------------------- ------------
<S> <C> <C>
U.S. TREASURY NOTES, CONTINUED:
8,000,000 7.50%, 11/15/01.............. $ 8,853,280
8,300,000 6.38%, 8/15/02............... 8,735,418
5,000,000 6.25%, 2/15/03............... 5,227,900
5,000,000 5.88%, 2/15/04............... 5,107,450
4,250,000 7.50%, 2/15/05............... 4,813,804
------------
Total U.S. Treasury Notes 83,278,318
------------
Investments, at value 139,275,687
------------
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
REPURCHASE AGREEMENTS (4.3%):
6,394,415 Merrill Lynch, 5.68%,
2/1/96(b).................. $ 6,394,415
------------
Total (Cost--$141,489,949)(a) $145,670,102
============
<FN>
- ---------
Percentages are based on net assets of $147,243,115.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized depreciation of securities as follows:
Unrealized appreciation.... $4,209,823
Unrealized depreciation.... (29,670)
----------
Net unrealized
appreciation............. $4,180,153
=========
(b) Fully collateralized by U.S. Treasury Strips.
See notes to financial statements.
</TABLE>
-37-
<PAGE> 39
QUALIVEST FUNDS
SMALL COMPANIES VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS (84.8%):
Apparel (0.6%):
158,500 Sirena Apparel Group,
Inc.(b)................... $ 931,187
123,300 Tarrant Apparel Group(b).... 739,800
------------
1,670,987
------------
Automotive Parts (1.0%):
74,140 Supreme Industries,
Inc.(b)................... 597,753
105,100 Walbro Corp.(b)............. 2,049,450
------------
2,647,203
------------
Banks (2.4%):
126,800 City National Corp.(b)...... 1,680,100
123,300 First Rep Bancorp,
Inc.(b)................... 1,649,138
6,800 Norwest Corp. .............. 233,750
90,000 Onbank, Inc.(b)............. 2,846,250
------------
6,409,238
------------
Beverages (0.6%):
66,200 Nor Wester Brewing,
Inc.(b)................... 529,600
88,100 Pepsi-Cola Puerto Rico
Bottling Co.(b)........... 969,100
------------
1,498,700
------------
Building Materials (0.6%):
45,800 Centex Construction
Products(b)............... 658,375
65,800 Simpson Manufacturing
Co.(b).................... 921,200
------------
1,579,575
------------
Chemicals (0.9%):
29,000 Cambrex Corp.(b)............ 1,305,000
97,000 Chemi-Trol Chemical
Co.(b).................... 1,079,125
------------
2,384,125
------------
Computers & Peripherals (7.6%):
753,200 Applied Magnetics
Corp.(b).................. 10,921,400
270,100 Concurrent Computer
Corp.(b).................. 265,879
312,000 Gandalf Technologies,
Inc.(b)................... 4,212,000
64,800 National Computer Systems,
Inc.(b)................... 1,312,200
56,600 Sequent Computer Systems,
Inc.(b)................... 650,900
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Computers & Peripherals, Continued:
420,200 Zycad Corp.(b).............. $ 2,836,350
------------
20,198,729
------------
Construction (0.6%):
75,100 Continental Homes Holding
Corp.(b).................. 1,652,200
------------
Consumer Goods (0.5%):
92,300 A T Cross Co.(b)............ 1,349,887
------------
Consumer Services (0.7%):
90,500 Matthews International
Corp., Class A(b)......... 1,945,750
------------
Containers--Metal, Glass, Paper, Plastic (0.3%):
65,000 Brockway Standard(b)........ 845,000
------------
Educational Services (0.5%):
141,300 Computer Learning
Center(b)................. 1,236,375
3,000 Learning Tree International,
Inc.(b)................... 52,500
------------
1,288,875
------------
Drug Stores (1.1%):
92,200 Big B, Inc.(b).............. 922,000
492,000 Drug Emporium, Inc.(b)...... 1,906,500
------------
2,828,500
------------
Electronic Computing Equipment (1.0%):
6,000 ADE Corp.................... 88,500
66,500 Benchmarq Microelectronics,
Inc.(b)................... 440,562
186,400 Electrostar, Inc.(b)........ 1,677,600
36,300 Tylan General, Inc.(b)...... 453,750
------------
2,660,412
------------
Electrical Equipment (2.1%):
125,900 AFC Cable Systems,
Inc.(b)................... 1,809,813
49,800 Exide Electronics Group,
Inc.(b)................... 672,300
65,200 Scotsman Industries,
Inc.(b)................... 1,165,450
89,400 Thomas Industries,
Inc.(b)................... 1,910,925
------------
5,558,488
------------
</TABLE>
Continued
-38-
<PAGE> 40
QUALIVEST FUNDS
SMALL COMPANIES VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Electronic & Electrical--General (3.4%):
66,100 Continental Circuits
Corp.(b).................. $ 925,400
144,300 FEI Co.(b).................. 1,623,375
101,500 IEC Electronics Corp.(b).... 989,624
10,700 Mentor Graphics Corp.(b).... 151,138
284,700 Moog, Inc., Class A(b)...... 5,266,950
------------
8,956,487
------------
Energy (0.5%):
65,000 Trigen Energy Corp.(b)...... 1,300,000
------------
Environmental Control (3.8%):
908,500 Air & Water Technologies,
Class A(b)................ 6,132,375
589,200 Catalytica, Inc.(b)......... 2,504,100
323,900 Envirosource, Inc.(b)....... 1,174,137
17,500 Kaiser Ventures, Inc.(b).... 220,938
------------
10,031,550
------------
Financial Services (0.9%):
177,700 Rockford Industries.,
Inc.(b)................... 1,643,725
19,500 Standard Federal
Bancorporation(b)......... 794,625
------------
2,438,350
------------
Food Distributors & Wholesalers (0.7%):
82,500 Quality Food Centers,
Inc.(b)................... 1,711,875
------------
Food Processing & Packaging (0.3%):
300 Hart Brewing, Inc.(b)....... 4,462
19,800 Interstate Bakeries......... 418,275
77,000 Stokely USA, Inc.(b)........ 288,750
------------
711,487
------------
Foreign (0.5%):
1,652 Computer 2000 AG(b)......... 507,709
11,400 GN Great Nordic(b).......... 860,695
------------
1,368,404
------------
Forest Products--Lumber, Paper (0.5%):
192,700 Merfin Hygienic Products,
Inc.(b)................... 857,129
38,900 Specialty Paperboard,
Inc.(b)................... 491,113
------------
1,348,242
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Furniture (0.1%):
40,500 Stanley Furniture Co.,
Inc.(b)................... $ 364,500
------------
Health Care (1.0%):
79,900 Sterile Concepts(b)......... 1,028,712
78,600 Theratx, Inc.(b)............ 717,225
107,100 Unison Healthcare
Corp.(b).................. 950,513
------------
2,696,450
------------
Heavy Machinery--Industrial, Farm, Construction (0.7%):
128,900 Park-Ohio Industries,
Inc.(b)................... 1,804,600
------------
Hotels & Motels (0.1%):
13,100 National Lodging Corp.(b)... 149,012
------------
Household Goods--Appliances, Furnishings, Elect (0.7%):
85,000 Libbey, Inc.(b)............. 1,742,500
------------
Insurance--Life (3.2%):
48,500 AmVestors Financial
Corp.(b).................. 533,500
284,745 Pioneer Financial Services,
Inc.(b)................... 5,196,596
103,600 Security-Connecticut
Corp. .................... 2,590,000
------------
8,320,096
------------
Insurance--Multi-Line (4.3%):
56,300 Acordia, Inc.(b)............ 1,667,888
92,000 Delphi Financial Group(b)... 2,139,000
178,060 Fremont General Corp. ...... 6,410,160
49,900 John Alden Financial
Corp.(b).................. 1,035,425
------------
11,252,473
------------
Insurance--Property Casualty, Health & Other (4.8%):
76,800 Acmat Corp.(b).............. 960,000
209,600 American Eagle Group,
Inc.(b)................... 1,965,000
88,200 Chandler Insurance Co.,
Ltd.(b)................... 562,275
83,400 Lasalle Re Holdings,
Ltd.(b)................... 1,959,900
51,500 Orion Capital Corp.(b)...... 2,304,625
158,250 Penn Treaty American
Corp.(b).................. 2,769,375
</TABLE>
Continued
-39-
<PAGE> 41
QUALIVEST FUNDS
SMALL COMPANIES VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Insurance--Property, Casualty, Health And Other,
Continued:
91,000 Philadelphia Consolidated
Holding Corp.(b).......... $ 1,797,250
67,400 Westbridge Capital
Corp.(b).................. 438,100
------------
12,756,525
------------
Leisure--Recreation, Gaming (0.7%):
130,800 Cannondale Corp.(b)......... 1,978,350
------------
Machine Tools (1.0%):
155,700 Bridgeport Machines,
Inc.(b)................... 2,685,825
29,800 Speizman Industries,
Inc.(b)................... 81,950
------------
2,767,775
------------
Miscellaneous Manufacturing (1.3%):
60,100 Total Containment,
Inc.(b)................... 240,400
64,350 Tredegar Industries,
Inc.(b)................... 1,616,793
67,300 Whittaker Corp.(b).......... 1,690,913
------------
3,548,106
------------
Medical Services (0.5%):
69,800 Integra Lifesciences
Corp.(b).................. 785,250
75,700 Oncormed, Inc.(b)........... 615,062
------------
1,400,312
------------
Medical Supplies (1.1%):
203,500 Cholestech Corp.(b)......... 992,063
316,600 Polymedica Industries(b).... 1,800,662
------------
2,792,725
------------
Metals--Fabrication (0.8%):
20,000 Barnes Group, Inc.(b)....... 832,500
249,500 Foster (Lb) Co.(b).......... 966,813
39,300 Greenbrier Cos., Inc. ...... 417,562
------------
2,216,875
------------
Office Equipment & Supplies (0.8%):
94,200 Am International, Inc.(b)... 441,562
105,700 Nu-Kote Holding, Inc., Class
A(b)...................... 1,744,050
------------
2,185,612
------------
Oil & Gas Production (2.3%):
694,200 Abacan Resource Corp.(b).... 1,909,050
19,300 Cairn Energy USA, Inc.(b)... 270,200
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Oil & Gas Production, Continued:
67,339 Clayton Williams Energy,
Inc.(b)................... $ 227,269
383,200 Grant Geophysical,
Inc.(b)................... 934,050
249,600 Forest Oil Corp.(b)......... 2,870,400
------------
6,210,969
------------
Pharmaceuticals (0.3%):
34,800 Roberts Pharmaceutical
Corp.(b).................. 813,450
------------
Pollution Control Services & Equipment (0.8%):
139,100 Heidemij N.V.(b)............ 1,321,450
312,100 Rollins Environmental
Services, Inc.(b)......... 702,225
------------
2,023,675
------------
Precision Instruments & Related (0.6%):
127,600 Unit Instruments, Inc.(b)... 1,658,800
------------
Printing (0.5%):
50,000 Devon Group, Inc.(b)........ 1,450,000
------------
Retail--Specialty Stores (0.9%):
111,300 Finlay Enterprises,
Inc.(b)................... 1,224,300
35,700 Old America Stores,
Inc.(b)................... 290,063
133,400 Payless Cashways, Inc.(b)... 583,625
157,100 Sound Advice, Inc.(b)....... 274,925
------------
2,372,913
------------
Savings & Loan Companies (3.2%):
77,900 Astoria Financial
Corp.(b).................. 3,826,838
14,400 Pacific Crest Capital,
Inc.(b)................... 108,000
105,200 T R Financial Corp.(b)...... 2,708,900
61,100 Webster Financial Corp. .... 1,771,900
------------
8,415,638
------------
Semiconductors (0.3%):
61,700 Speedfam International,
Inc.(b)................... 802,100
------------
</TABLE>
Continued
-40-
<PAGE> 42
QUALIVEST FUNDS
SMALL COMPANIES VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Services (Non-Financial) (0.7%):
75,800 Borg-Warner Security
Corp.(b).................. $ 852,750
78,600 Kinder Care Learning
Centers, Inc.(b).......... 992,325
------------
1,845,075
------------
Software & Computer Services (12.7%):
193,100 American Software,
Inc.(b)................... 941,363
108,855 Banctec, Inc.(b)............ 1,959,390
61,500 BDM International,
Inc.(b)................... 1,768,125
252,100 Borland International(b).... 4,695,363
221,400 Cognos, Inc.(b)............. 8,772,975
168,100 Consilium, Inc.(b).......... 1,428,850
232,900 Dataflex Corp.(b)........... 873,375
76,800 Datalogic(b)................ 902,400
51,600 Elcom International,
Inc.(b)................... 464,400
87,100 Global Village(b)........... 1,393,600
78,200 Government Technology
Services(b)............... 293,250
93,600 GSE Systems, Inc.(b)........ 1,333,800
252,000 Micrografx, Inc.(b)......... 3,142,125
185,100 Nimbus CD International,
Inc.(b)................... 1,411,388
60,200 Parplace-Digitalk,
Inc.(b)................... 519,225
183,400 Triad Systems Corp.(b)...... 1,077,475
173,700 Tro Learning, Inc.(b)....... 2,627,213
------------
33,604,317
------------
Steel (0.9%):
105,200 Kentucky Electric Steel,
Inc.(b)................... 782,425
84,200 Northwest Pipe Co.(b)....... 968,300
104,800 Republic Engineered Steels,
Inc.(b)................... 550,200
------------
2,300,925
------------
Technology (2.4%):
105,400 Bell & Howell Holdings
Co.(b).................... 3,241,050
133,300 Chips & Technologies,
Inc.(b)................... 1,266,350
96,200 Macneal-Schwendler
Corp.(b).................. 1,358,825
172,700 Plasma-Therm, Inc.(b)....... 366,988
------------
6,233,213
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Telecommunications (3.7%):
149,400 Comdial Corp.(b)............ $ 1,363,275
222,900 Geotek Communications,
Inc.(b)................... 1,866,788
66,600 Inter-Tel, Inc.(b).......... 911,587
121,300 Mastec, Inc.(b)............. 1,199,733
230,800 Mitel Corp.(b).............. 1,327,100
270,900 Olicom(b)................... 3,183,075
------------
9,851,558
------------
Textile Manufacturing (0.7%):
30,500 Conso Products Co.(b)....... 549,000
53,800 Hampshire Group, Ltd.(b).... 578,350
84,800 Oneita Industries,
Inc.(b)................... 583,000
------------
1,710,350
------------
Transportation Leasing & Trucking (0.2%):
50,000 Simon Transportation
Services(b)............... 481,250
------------
Transportation--Marine (0.9%):
101,200 Anangel American
Shipholdings(b)........... 1,214,400
36,100 B & H Ocean Carriers,
Ltd.(b)................... 81,225
81,000 Pacific Basin Bulk
Shipping(b)............... 1,063,125
------------
2,358,750
------------
Transportation--Air (0.4%):
103,000 World Airways, Inc.(b)...... 978,500
------------
Utilities--Electric (1.1%):
861,600 Tucson Electric Power
Co.(b).................... 2,800,200
------------
Total Common Stocks 224,271,658
------------
CONVERTIBLE BONDS (2.2%):
Computer (0.1%):
235,000 Convex Computer, 6.00%,
3/1/12.................... 221,488
------------
Drug Stores (0.2%):
732,000 Drug Emporium, 7.75%,
10/1/14................... 527,955
------------
Environmental Control (0.3%):
1,057,000 Air & Water Technology,
8.00%,
5/15/15................... 916,948
------------
</TABLE>
Continued
-41-
<PAGE> 43
QUALIVEST FUNDS
SMALL COMPANIES VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
CONVERTIBLE BONDS, CONTINUED:
Health Care (0.4%):
1,250,000 Theratx, Inc., 8.00%,
2/1/02.................... $ 1,095,313
------------
Pharmaceuticals (0.3%):
720,000 Big B, Inc., 6.50%,
3/15/03................... 716,400
39,000 Systemed, Inc., 10.00%,
9/15/02................... 42,413
------------
758,813
------------
Real Estate Investment Trust (0.2%):
381,000 Maxxim Medical, 6.75%,
3/1/03.................... 439,579
------------
Software & Computer Services (0.5%):
1,620,000 Recognition International,
7.25%, 4/15/11............ 1,413,450
------------
Utility-Electric (0.2%):
164,000 O'Brien Energy, 11.00%,
3/15/10(b)................ 193,520
184,000 O'Brien Energy, 11.00%,
3/15/11(b)................ 217,120
------------
410,640
------------
Total Convertible Bonds 5,784,186
------------
PREFERRED STOCK (1.1%):
61,000 Liposome Co., Inc.(b)....... 2,828,875
------------
Total Preferred Stock 2,828,875
------------
REAL ESTATE INVESTMENT TRUSTS (5.9%):
60,300 Chelsea GCA Realty,
Inc.(b)................... 1,748,700
83,700 Highwood Properties,
Inc.(b)................... 2,552,850
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
REAL ESTATE INVESTMENT TRUSTS, CONTINUED:
103,700 Omega Healthcare Investors,
Inc.(b)................... $ 2,942,488
53,600 RFS Hotel Investors,
Inc.(b)................... 951,400
86,500 Shurgard Storage Centers,
Inc.(b)................... 2,335,500
111,533 Starwood Lodging Trust(b)... 3,583,008
54,400 Walden Residential
Properties, Inc.(b)....... 1,142,400
32,500 Winston Hotels, Inc.(b)..... 412,343
------------
Total Real Estate Investment Trust 15,668,689
------------
WARRANTS (0.5%):
Radio & Television (0.0%):
505 Sound Advice Warrants,
Expire 6/14/99(b)......... 0
Shipping (0.5%):
307,400 Nordic American Tanker
Shipping, Expire
9/30/97(b)................ 1,306,450
------------
1,306,450
------------
Investments, at value 249,859,858
------------
REPURCHASE AGREEMENTS (6.3%):
16,644,564 Merrill Lynch, 5.68%,
2/1/96(c)................. 16,644,564
------------
Total (Cost--$219,304,407)(a) $266,504,422
============
<FN>
- ---------
Percentages indicated are based on net assets of $264,590,980.
(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 $80,000. Cost for federal income tax purposes differs from
value by net unrealized appreciation of securities as follows:
Unrealized appreciation... $ 63,386,969
Unrealized depreciation... (16,266,954)
-----------
Net unrealized
appreciation............ $ 47,120,015
===========
(b) Non-income producing securities.
(c) Fully collateralized by U.S. Treasury Strips.
</TABLE>
See notes to financial statements.
-42-
<PAGE> 44
QUALIVEST FUNDS
LARGE COMPANIES VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS (89.8%):
Automotive Parts (0.9%):
37,300 A.O. Smith Corp.............. $ 937,162
------------
Automobiles (4.4%):
120,696 Ford Motor Company........... 3,575,619
22,400 General Motors(b)............ 1,178,800
------------
4,754,419
------------
Banks (3.4%):
17,000 Citicorp..................... 1,255,875
1,700 First Interstate
Bancorp.(b)................ 262,225
10,400 First Union Corp.(b)......... 601,900
20,700 Mellon Bank Corp............. 1,097,100
7,000 Nationsbank Corp.(b)......... 489,125
------------
3,706,225
------------
Beverages (0.6%):
97,300 Cott Corp.(b)................ 644,613
------------
Brokerage Firms & Security Dealers (0.6%):
27,536 Bear Stearns Companies,
Inc.(b).................... 633,328
------------
Building Materials (1.5%):
51,700 Congoleum Corp., Class
A(b)....................... 529,925
36,800 USG Corp.(b)................. 1,094,800
------------
1,624,725
------------
Chemicals (7.1%):
25,700 Air Products And Chemicals,
Inc........................ 1,371,737
44,700 Dexter Corp.(b).............. 1,050,450
400 Dow Chemical Company(b)...... 29,800
12,000 E.I. Du Pont De Nemours
Company(b)................. 922,500
56,400 Ecolab, Inc.(b).............. 1,699,050
24,600 Ferro Corp.(b)............... 618,075
19,800 Mallinckrodt Group,
Inc.(b).................... 794,475
20,900 Praxair, Inc.(b)............. 710,600
24,200 Wellman, Inc.(b)............. 484,000
------------
7,680,687
------------
Computers & Peripherals (2.7%):
27,039 I.B.M. Corp.(b).............. 2,940,491
------------
Consumer Goods (1.0%):
38,100 American Greetings
Corp.(b)................... 1,038,225
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED
Department Stores (0.2%):
53,100 Service Merchandise
Company(b)................. $ 252,225
------------
Diversified--Conglomerates, Holding Companies (2.1%):
80,992 Hanson PLC ADR(b)............ 1,255,376
20,300 Tenneco, Inc.(b)............. 1,047,988
------------
2,303,364
------------
Electrical Equipment (1.7%):
8,100 General Electric Co.(b)...... 621,675
14,900 Thomas & Betts Corp.(b)...... 1,171,512
------------
1,793,187
------------
Electronic & Electrical--General (0.9%):
16,600 General Signal Corp.(b)...... 560,250
8,968 Texas Instruments, Inc.(b)... 417,012
------------
977,262
------------
Engineering--Industrial Construction (0.4%):
21,600 E G & G, Inc................. 480,600
------------
Entertainment (0.1%):
10,850 Players International,
Inc.(b).................... 99,006
------------
Financial Services (7.2%):
38,000 Federal National Mortgage
Assoc...................... 1,311,000
18,900 First USA, Inc............... 985,163
10,000 H & R Block.................. 368,750
21,500 Household International,
Inc.(b).................... 1,394,812
31,000 Standard Federal
Bancorporation(b).......... 1,263,250
4,753 Transamerica Corp............ 361,822
31,900 Travelers, Inc.(b)........... 2,097,425
------------
7,782,222
------------
Food Distributors (1.1%):
29,000 Kroger Co.(b)................ 1,007,750
5,900 Sysco Corp................... 188,800
------------
1,196,550
------------
Food Processing & Packaging (2.7%):
20,600 CPC International, Inc.(b)... 1,498,650
11,600 Dean Foods Company(b)........ 308,850
28,500 Universal Food Corp.(b)...... 1,100,813
------------
2,908,313
------------
</TABLE>
Continued
-43-
<PAGE> 45
QUALIVEST FUNDS
LARGE COMPANIES VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED
Foreign (0.2%):
8,475 Cap Gemini Sogeti(b)......... $ 247,721
------------
Forest Products (6.4%):
121,800 Boise Cascade Corp.(b)....... 4,780,650
7,500 Chesapeake Corp.............. 212,812
4,300 Georgia Pacific Corp.(b)..... 315,513
11,600 Mead Corp.(b)................ 640,900
26,250 Rayonier, Inc.(b)............ 951,562
------------
6,901,437
------------
Insurance (1.4%):
21,600 Bankers Life Holding
Corp.(b)................... 469,800
26,900 Mid-Ocean, Ltd.(b)........... 1,049,100
------------
1,518,900
------------
Machine Tools (0.8%):
17,200 BW/IP Holdings, Inc.(b)...... 249,400
9,900 Cincinnati Milacron,
Inc.(b).................... 236,363
21,719 U.S. Industries, Inc.(b)..... 390,942
------------
876,705
------------
Manufacturing--Capital Goods (1.2%):
59,000 Albany International Corp.,
Class A(b)................. 1,091,500
6,310 Sequa Corp., Class A(b)...... 201,131
------------
1,292,631
------------
Medical Services--Hospital Management,
Nursing Home (4.7%):
26,900 Columbia/HCA Healthcare
Corp....................... 1,496,312
62,900 OrNda Healthcorp(b).......... 1,588,225
142,900 Sun Healthcare Group,
Inc.(b).................... 1,982,738
------------
5,067,275
------------
Mobile Homes & Manufactured Housing (1.5%):
64,800 Fleetwood Enterprises,
Inc........................ 1,652,400
------------
Office Equipment & Supplies (0.5%):
26,600 Moore & Associates Ltd.(b)... 525,350
------------
Oil & Gas Exploration, Production (2.6%):
37,000 Sun Company, Inc.(b)......... 1,008,250
38,600 Union Texas Petrol Hldgs,
Inc........................ 704,450
38,300 Vastar Resources, Inc.(b).... 1,081,975
------------
2,794,675
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED
Oil--Integrated Companies (3.6%):
8,900 Atlantic Richfield
Company(b)................. $ 1,011,262
24,500 Enersis Spa Sponsored
ADR(b)..................... 912,625
43,800 Occidental Petroleum
Corp.(b)................... 941,700
33,811 Unocal Corp.................. 1,010,104
------------
3,875,691
------------
Oilfield Equipment & Services (2.5%):
77,200 McDermott International,
Inc.(b).................... 1,495,750
56,200 Petroleum Geo-Svcs(b)........ 1,208,300
------------
2,704,050
------------
Pharmaceuticals (2.6%):
7,300 Bristol-Myers Squibb
Company.................... 646,050
12,000 Pharmacia & Upjohn, Inc...... 502,500
30,000 Schering-Plough.............. 1,623,750
------------
2,772,300
------------
Photography (0.7%):
9,600 Eastman Kodak Company(b)..... 704,400
------------
Precision Instruments & Related (0.8%):
17,800 Perkin Elmer(b).............. 841,050
------------
Primary Metal & Mineral Production (1.2%):
19,894 Cleveland-Cliffs(b).......... 867,876
35,600 Greenbrier Companies, Inc.... 378,250
------------
1,246,126
------------
Publishing (0.4%):
8,800 Reader's Digest Assoc., Class
B.......................... 385,000
------------
Railroad & Railroad Holding Companies (0.7%):
11,100 Union Pacific Corp.(b)....... 739,537
------------
Real Estate Investment Trusts (1.1%):
32,300 Meditrust Shares Beneficial
Interest................... 1,126,463
------------
</TABLE>
Continued
-44-
<PAGE> 46
QUALIVEST FUNDS
LARGE COMPANIES VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED
Retail (3.2%):
35,000 Dillard Department Stores,
Inc........................ $ 1,015,000
13,400 May Department Stores(b)..... 596,300
38,400 Rite Aid(b).................. 1,233,600
15,193 Sears & Roebuck Company(b)... 630,509
------------
3,475,409
------------
Retail--Specialty Stores (4.1%):
62,700 Intimate Brands, Inc.(b)..... 924,825
63,200 The Limited, Inc.(b)......... 1,058,600
123,400 Waban, Inc.(b)............... 2,375,450
------------
4,358,875
------------
Semiconductors (1.8%):
36,300 Advanced Micro Devices,
Inc.(b).................... 721,463
70,500 National Semiconductor
Corp.(b)................... 1,216,125
------------
1,937,588
------------
Software & Computer Services (0.8%):
45,400 Intergraph Corp.(b).......... 839,900
------------
Telecommunications (1.0%):
38,200 Tele Danmark A/S ADR(b)...... 1,064,825
------------
Textile Manufacturing (0.3%):
7,700 Springs Industries,
Inc.(b).................... 308,000
------------
Tobacco & Tobacco Products (1.6%):
18,200 Philip Morris Companies,
Inc.(b).................... 1,692,600
------------
Tools & Hardware Manufacturing (0.7%):
21,200 Black & Decker Corp.(b)...... 718,150
------------
Transportation Leasing & Trucking (0.6%):
13,800 CSX Corp.(b)................. 639,975
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED
Utilities--Electric (2.3%):
40,200 Houston Industries,
Inc.(b).................... $ 964,800
17,300 Minnesota Power & Light(b)... 499,537
32,300 Peco Energy Company(b)....... 993,225
------------
2,457,562
------------
Utilities--Natural Gas (0.9%):
34,700 Panhandle Eastern Corp.(b)... 1,001,963
------------
Utilities--Telecommunications (1.0%):
18,200 SBC Communications, Inc...... 1,030,575
------------
Total Common Stocks 96,549,737
------------
CONVERTIBLE PREFERRED STOCKS (0.6%):
Automobiles (0.3%):
3,269 Ford Motor Company........... 314,233
------------
Tobacco & Tobacco Products (0.3%):
53,200 RJR Nabisco Convertible
Preferred Stock............ 352,450
------------
Total Preferred Stocks 666,683
------------
WARRANTS (0.0%):
Radio & Television (0.0%):
2,617 Sound Advice Warrants
Expire 6/14/99(b).......... 0
------------
Total Investments, at value 97,216,420
------------
REPURCHASE AGREEMENTS (9.2%):
9,875,915 Merrill Lynch, 5.68%,
2/1/96(c).................. 9,875,915
------------
Total (Cost--$91,126,300)(a) $107,092,335
============
<FN>
- ---------
Percentages indicated are based on net assets of $107,549,436.
(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 $121,000. Cost for federal income tax purposes differs from value by net unrealized appreciation
of securities as follows:
Unrealized appreciation....... $18,597,572
Unrealized depreciation....... (2,752,537)
-----------
Net unrealized appreciation... $15,845,035
==========
(b) Non-income producing securities.
(c) Fully collateralized by U.S. Treasury Strips.
</TABLE>
See notes to financial statements.
-45-
<PAGE> 47
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS (94.1%):
Advertising (0.1%):
3,600 Interpublic Group Cos.,
Inc. ...................... $ 153,000
------------
Aerospace (0.6%):
17,200 Boeing Co. .................. 1,335,150
------------
Aerospace/Defense (0.9%):
8,900 Lockheed Martin Corp. ....... 670,838
5,500 McDonnell Douglas Corp. ..... 489,500
3,000 Northrop Corp. .............. 192,000
3,600 Rockwell International
Corp. ..................... 211,050
4,200 Textron, Inc. ............... 330,225
100 TRW, Inc. ................... 8,450
------------
1,902,063
------------
Agriculture & Livestock (0.2%):
9,500 Pioneer Hi-Bred.............. 484,500
------------
Aircraft & Aircraft Parts (Aviation) (0.5%):
100 AlliedSignal, Inc. .......... 4,987
4,000 General Dynamics Corp. ...... 233,500
6,700 United Technologies Corp. ... 687,588
------------
926,075
------------
Air Freight (0.1%):
1,600 Federal Express(b)........... 121,800
100 Navistar International(b).... 950
100 Pittston Brinks Co. ......... 2,500
------------
125,250
------------
Airlines (0.3%):
2,000 AMR Corp. ................... 152,000
4,100 Delta Air Lines.............. 280,338
2,100 Southwest Airlines........... 54,600
7,500 US Air Group, Inc. .......... 112,500
------------
599,438
------------
Aluminum (0.7%):
7,800 Alcan Aluminum, Ltd. ........ 248,625
20,300 Aluminum Co. of America...... 1,126,650
2,300 Reynolds Metals Co. ......... 123,050
------------
1,498,325
------------
Apparel (0.1%):
4,600 Liz Claiborne, Inc. ......... 128,225
------------
Automobiles (1.7%):
14,400 Chrysler Corp. .............. 831,600
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Automobiles, Continued:
3,700 Echlin, Inc. ................ $ 136,438
33,600 Ford Motor Co. .............. 995,400
25,400 General Motors Corp. ........ 1,336,675
2,300 PACCAR, Inc. ................ 105,225
------------
3,405,338
------------
Automotive Parts (0.5%):
7,300 Comcast Corp. Special, Class
A.......................... 146,913
6,300 Dana Corp. .................. 207,112
4,700 Eaton Corp. ................. 272,600
7,400 Genuine Parts Co. ........... 329,300
------------
955,925
------------
Banks (1.5%):
8,200 BankAmerica Corp. ........... 552,475
13,300 Bank of Boston Corp. ........ 608,475
13,900 First Chicago NBD Corp. ..... 540,363
21,215 First Union Corp. ........... 1,227,818
6,300 Keycorp...................... 231,525
------------
3,160,656
------------
Banks--Money Centers (3.6%):
4,100 Bank of New York Co.,
Inc. ...................... 210,125
4,800 Bankers Trust New York....... 311,400
1,400 Barnett Banks, Inc. ......... 81,900
100 Boatmens Bancshares, Inc. ... 4,288
9,900 Chase Manhattan Corp. ....... 683,100
28,600 Chemical Banking Corp. ...... 1,916,200
23,500 Citicorp..................... 1,736,063
100 Corestates Financial
Corp. ..................... 4,000
100 Golden West Financial Corp.,
Delaware................... 5,175
100 Great Western Financial
Corp. ..................... 2,400
100 J.P. Morgan & Co., Inc. ..... 8,125
16,300 MBNA Corp. .................. 664,225
9,000 National City Corp. ......... 293,625
10,600 Nationsbank Corp. ........... 740,675
21,500 Norwest Corp. ............... 739,063
100 PNC Financial Corp. ......... 3,000
</TABLE>
Continued
-46-
<PAGE> 48
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Banks--Money Centers, Continued:
100 Republic New York Corp. ..... $ 5,824
100 Suntrust Banks, Inc. ........ 6,912
------------
7,416,100
------------
Banks--Outside Money Center (1.6%):
18,100 Banc One Corp. .............. 685,538
10,800 First Bank Systems, Inc. .... 567,000
4,700 First Interstate Bancorp..... 724,975
7,100 Fleet Financial Group,
Inc. ...................... 284,000
14,700 Mellon Bank Corp. ........... 779,100
6,000 U.S. Bancorp(d).............. 197,250
100 Wachovia Corp. .............. 4,475
100 Wells Fargo & Co. ........... 23,462
------------
3,265,800
------------
Beverages (2.7%):
4,700 Adolph Coors Co., Class B.... 112,800
4,700 Anheuser Busch Co., Inc. .... 326,650
1,500 Brown Forman Corp., Class
B.......................... 54,750
36,400 Coca Cola Co. ............... 2,743,650
29,900 PepsiCo, Inc. ............... 1,782,787
12,300 Seagram Co., Ltd............. 447,413
------------
5,468,050
------------
Brokerage Firms & Security Dealers (0.2%):
5,400 Merrill Lynch & Co., Inc. ... 307,125
100 Salomon, Inc. ............... 3,813
------------
310,938
------------
Building Materials (0.1%):
5,500 Masco Corp. ................. 160,875
3,000 Owens Corning(b)............. 135,750
------------
296,625
------------
Chemicals--General (2.0%):
6,800 Air Products & Chemicals,
Inc. ...................... 362,950
3,500 Dow Chemical Co. ............ 260,750
16,200 E.I. Du Pont De Nemours
Co. ....................... 1,245,375
1,200 FMC Corp. ................... 87,450
100 W R Grace & Co. ............. 6,163
2,100 Hercules, Inc. .............. 116,025
7,100 Monsanto Co. ................ 924,775
9,100 Morton International,
Inc. ...................... 336,700
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Chemicals--General, Continued:
4,100 Nalco Chemical Co. .......... $ 125,562
14,900 Praxair, Inc. ............... 506,600
100 Rohm & Haas Co. ............. 6,925
2,000 Sigma Aldrich Corp. ......... 105,000
------------
4,084,275
------------
Chemicals--Specialty (0.7%):
100 Avery Dennison Corp. ........ 5,338
4,900 Eastman Chemical............. 324,012
2,900 Ecolab, Inc. ................ 87,363
8,800 Engelhard Corp. ............. 203,500
3,500 Great Lakes Chemical......... 261,188
100 Mallinckrodt Group, Inc. .... 4,012
8,500 PPG Industries, Inc. ........ 397,375
4,200 Union Carbide Corp. ......... 176,925
------------
1,459,713
------------
Coal (0.0%):
100 Nacco Industries, Inc. Class
A(b)....................... 5,263
------------
Computers & Peripherals (4.3%):
2,900 3 Com Corp.(b)............... 133,038
100 Amdahl Corp.(b).............. 731
6,900 Apple Computer, Inc. ........ 190,612
4,500 Cabletron Systems(b)......... 347,062
2,800 Ceridian Corp.(b)............ 126,000
10,200 Cisco Systems, Inc.(b)....... 849,150
2,300 Data General Corp.(b)........ 36,225
6,500 Digital Equipment Corp.(b)... 470,437
28,800 Hewlett Packard Co. ......... 2,440,800
23,400 I.B.M. Corp. ................ 2,544,750
18,100 Oracle Corp.(b).............. 864,275
1,100 Shared Medical Systems
Corp.(b)................... 62,700
9,700 Silicon Graphics, Inc.(b).... 272,813
11,600 Sun Microsystems, Inc.(b).... 533,600
100 Tandem Computers, Inc.(b).... 938
100 Unisys Corp.(b).............. 750
------------
8,873,881
------------
Conglomerates (0.5%):
14,000 Corning Glass Works(b)....... 437,500
</TABLE>
Continued
-47-
<PAGE> 49
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Conglomerates, Continued:
8,700 Minnesota Mining &
Manufacturing Co. ......... $ 561,150
------------
998,650
------------
Construction (0.1%):
1,800 Centex Corp. ................ 58,050
4,300 Foster Wheeler Corp. ........ 189,738
1,700 Pulte Corp. ................. 56,100
------------
303,888
------------
Consumer Credit (0.0%):
100 Dean Witter Discover &
Co. ....................... 5,413
------------
Consumer Goods (0.2%):
4,600 American Greetings Corp. .... 125,350
2,300 Jostens, Inc. ............... 52,900
3,800 Premark International,
Inc. ...................... 196,650
------------
374,900
------------
Consumer Services (0.2%):
9,400 CUC International, Inc.(b)... 346,625
------------
Containers--Metal, Glass, Paper, Plastic (0.5%):
1,800 Ball Corp. .................. 51,075
3,300 Bemis, Inc. ................. 93,225
5,500 Crown Cork & Seal, Inc. ..... 226,188
10,700 Newell Co. .................. 282,212
9,600 Rubbermaid, Inc. ............ 272,400
4,400 Stone Container Corp. ....... 64,350
------------
989,450
------------
Cosmetics & Related (0.7%):
100 Alberto Culver Co., Class
B.......................... 3,600
4,200 Avon Products, Inc. ......... 331,800
12,800 Gillette Co. ................ 686,400
6,700 International Flavors &
Fragrances, Inc. .......... 335,838
------------
1,357,638
------------
Department Stores (0.4%):
16,100 J. C. Penney................. 788,900
700 Mercantile Stores, Inc. ..... 32,988
------------
821,888
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Developers--Real Estate (0.4%):
27,700 Entergy Corp.(b)............. $ 820,613
100 Kaufman & Broad Home
Corp. ..................... 1,600
------------
822,213
------------
Diversified--Conglomerates (0.3%):
100 Dial Corp. .................. 3,150
4,700 ITT(b)....................... 260,850
3,200 Micron Technology, Inc. ..... 109,600
100 National Service Industries,
Inc. ...................... 3,488
100 Teledyne, Inc. .............. 2,500
1,800 Tenneco, Inc. ............... 92,925
4,300 Whitman Corp. ............... 97,825
------------
570,338
------------
Drug Stores (0.0%):
100 Longs Drug Stores Corp. ..... 4,525
------------
Electrical Equipment (3.0%):
100 Emerson Electric Co. ........ 8,375
65,700 General Electric Co. ........ 5,042,475
3,300 Honeywell, Inc. ............. 167,888
7,200 Loews Corp. ................. 594,900
1,200 Thomas & Betts Corp. ........ 94,350
3,100 W W Grainger, Inc. .......... 208,863
100 Westinghouse Electric
Corp. ..................... 2,087
------------
6,118,938
------------
Electronic & Electrical--General (1.7%):
13,300 AMP, Inc. ................... 518,700
6,500 Cooper Industries............ 244,563
2,900 General Signal Corp. ........ 97,875
3,500 Harris Corp. ................ 219,188
36,200 Motorola, Inc. .............. 1,945,750
2,800 Raychem Corp. ............... 187,250
3,700 Raytheon Co. ................ 181,762
4,700 Scientific Atlanta, Inc. .... 74,025
1,800 Tektronix, Inc. ............. 82,350
900 Texas Instruments, Inc. ..... 41,850
------------
3,593,313
------------
</TABLE>
Continued
-48-
<PAGE> 50
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Electronic Computing Equipment (0.3%):
11,300 Compaq Computer Corp.(b)..... $ 532,513
1,500 Cray Research, Inc.(b)....... 37,500
------------
570,013
------------
Electronics--Defense Related (0.2%):
10,600 Loral Corp. ................. 490,250
------------
Engineering, Industrial Construction (0.3%):
3,100 E G & G, Inc. ............... 68,975
7,200 Fluor Corp. ................. 482,400
------------
551,375
------------
Entertainment (0.9%):
3,000 Bally Entertainment(b)....... 40,500
100 Harrah's Entertainment,
Inc.(b).................... 2,750
5,300 Hasbro, Inc. ................ 219,950
100 King World Productions,
Inc. ...................... 4,300
23,200 The Walt Disney Co. ......... 1,490,600
------------
1,758,100
------------
Environmental Control (0.1%):
17,900 Laidlaw, Inc., Class B....... 187,950
------------
Financial Services (3.3%):
29,000 American Express Co. ........ 1,334,000
19,900 Automatic Data Processing,
Inc. ...................... 793,513
3,300 Beneficial Corp. ............ 161,287
100 Comerica, Inc. .............. 3,963
3,600 Dun & Bradstreet
Corp. ..................... 234,000
100 Federal Home Loan Mortgage
Corp. ..................... 8,562
42,000 Federal National Mortgage
Corp. ..................... 1,449,000
13,000 First Data Corp. ............ 919,750
100 H & R Block.................. 3,687
5,900 Household International,
Inc. ...................... 382,763
9,200 Morgan Stanley Group,
Inc. ...................... 438,150
4,100 Transamerica Corp. .......... 312,112
11,200 Travelers, Inc. ............. 736,400
------------
6,777,187
------------
Food Distributors (0.8%):
15,400 Albertsons, Inc. ............ 525,525
100 Fleming Cos., Inc. .......... 1,900
3,600 Giant Food, Inc. ............ 115,200
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Food Distributors, Continued:
100 Great Atlantic & Pacific Tea
Co., Inc. ................. $ 2,350
7,600 Kroger Co.(b)................ 264,100
11,100 Sysco Corp. ................. 355,200
9,300 Winn Dixie Stores, Inc. ..... 326,663
------------
1,590,938
------------
Food Processing & Packaging (2.7%):
32,300 Archer Daniels Midland
Co. ....................... 613,700
15,200 Campbell Soup Co. ........... 963,300
10,600 Cinergy Corp. ............... 329,925
13,900 ConAgra, Inc. ............... 637,663
4,900 CPC International, Inc. ..... 356,475
100 General Mills................ 5,750
3,600 Hershey Foods Corp. ......... 254,700
6,700 H.J. Heinz Co. .............. 230,313
6,500 Kellogg Co. ................. 498,062
100 Quaker Oats Co. ............. 3,437
4,200 Ralston-Ralston Purina
Group...................... 270,375
29,400 Sara Lee Corp. .............. 992,250
7,000 William Wrigley Junior
Co. ....................... 416,500
------------
5,572,450
------------
Forest Products--Lumber, Paper (2.2%):
6,900 Alco Standard Corp. ......... 270,825
3,000 Boise Cascade Corp. ......... 117,750
100 Champion International
Corp. ..................... 4,475
4,500 Federal Paper Board Co.,
Inc. ...................... 243,562
5,600 Georgia Pacific Corp. ....... 410,900
15,500 International Paper Co. ..... 633,562
4,900 James River Corp. ........... 128,625
17,000 Kimberly Clark Corp. ........ 1,370,625
6,500 Louisiana Pacific Corp. ..... 165,750
100 Mead Corp. .................. 5,525
1,700 Potlatch Corp. .............. 69,488
3,500 Temple Inland, Inc. ......... 153,563
100 Union Camp Corp. ............ 5,150
350 Westvaco Corp. .............. 10,150
14,900 Weyerhauser Co. ............. 687,263
3,300 Willamette Industries,
Inc. ...................... 183,975
------------
4,461,188
------------
</TABLE>
Continued
-49-
<PAGE> 51
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Gold & Silver Mining (0.0%):
600 Echo Bay Mines, Ltd.......... $ 7,725
100 Homestake Mining............. 1,887
100 Placer Dome, Inc. ........... 2,813
------------
12,425
------------
Health Care (1.9%):
16,800 Humana, Inc.(b).............. 464,100
23,400 Johnson & Johnson, Inc. ..... 2,246,400
18,700 United Healthcare Corp. ..... 1,175,763
------------
3,886,263
------------
Heavy Machinery (0.9%):
100 Baker Hughes, Inc. .......... 2,588
12,000 Caterpillar Tractor, Inc. ... 772,500
15,100 Deere & Co. ................. 566,250
100 Harnischfeger Industries,
Inc. ...................... 3,388
100 Ingersoll Rand Co. .......... 4,012
12,700 Tyco Laboratories, Inc. ..... 449,262
------------
1,798,000
------------
Hospital & Nursing Equipment (0.2%):
3,500 Bard C.R., Inc. ............. 122,500
2,900 Becton Dickinson & Co. ...... 250,488
------------
372,988
------------
Hotels & Motels (0.2%):
100 Hilton Hotels Corp. ......... 7,775
7,600 Marriott International,
Inc. ...................... 325,850
------------
333,625
------------
Household Goods (0.2%):
4,500 Armstrong World Industries,
Inc. ...................... 264,375
6,600 Maytag Corp. ................ 129,525
100 Whirlpool Corp. ............. 5,438
------------
399,338
------------
Industrial Services (0.2%):
6,600 Dover Corp. ................. 301,125
2,900 Millipore Corp. ............. 123,975
------------
425,100
------------
Insurance--Broker (0.2%):
2,800 Alexander & Alexander
Services, Inc. ............ 54,250
4,500 Marsh & Mclennan Cos.,
Inc. ...................... 409,500
------------
463,750
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Insurance--Fire, Marine, Casualty (0.1%):
5,500 SAFECO Corp. ................ $ 197,313
2,100 USF&G Corp. ................. 33,600
------------
230,913
------------
Insurance--Life (0.4%):
5,200 Jefferson Pilot Corp. ....... 259,350
3,700 Lincoln National Corp. ...... 195,637
100 Providian Corp. ............. 4,388
4,400 Torchmark Corp. ............. 208,450
2,100 USlife Corp. ................ 67,463
------------
735,288
------------
Insurance--Multi-Line (1.0%):
6,400 Aetna Life & Casualty Co. ... 476,800
9,800 American General Corp. ...... 369,950
4,700 Cigna Corp. ................. 557,538
1,000 ITT Hartford Group, Inc. .... 50,125
11,200 U S Healthcare, Inc. ........ 543,200
------------
1,997,613
------------
Insurance--Property, Casualty,
Health & Other (1.8%):
35,400 Allstate..................... 1,544,325
4,300 American International Group,
Inc. ...................... 416,562
6,100 Chubb Corp. ................. 632,875
5,000 General Reinsurance Corp. ... 765,000
1,390 Highlands Insurance
Group(b)................... 26,584
100 St. Paul Cos., Inc. ......... 5,700
5,100 UNUM Corp. .................. 313,650
------------
3,704,696
------------
Leisure--Recreation, Gaming (0.1%):
725 Bally Total Fitness
Holdings(b)................ 3,580
5,800 Brunswick Corp. ............. 131,225
2,000 Handleman Co. ............... 12,750
100 Outboard Marine Corp. ....... 2,000
------------
149,555
------------
Machine Tools (0.0%):
100 Cincinnati Milacron, Inc. ... 2,388
</TABLE>
Continued
-50-
<PAGE> 52
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Machine Tools, Continued:
100 Cyprus Amax Minerals Co. .... $ 2,650
2,100 Giddings & Lewis, Inc. ...... 32,287
------------
37,325
------------
Machinery (0.1%):
4,500 Applied Materials(b)......... 166,500
------------
Manufacturing--Capital Goods (0.5%):
3,500 Briggs & Stratton Corp. ..... 153,562
100 Crane Co. ................... 3,962
2,400 Cummins Engine, Inc. ........ 92,700
6,700 Illinois Tool Works.......... 411,213
3,100 Pall Corp. .................. 83,700
4,500 Parker-Hannifin Corp. ....... 153,563
1,700 Trinova Corp. ............... 52,275
2,400 Varity Corp. ................ 88,800
------------
1,039,775
------------
Miscellaneous Manufacturing (0.0%):
100 ITT Industries, Inc. ........ 2,600
------------
Medical Services (1.3%):
7,200 Baxter International,
Inc. ...................... 327,600
6,000 Beverly Enterprises,
Inc.(b).................... 72,000
11,400 Boston Scientific Corp.(b)... 584,250
22,800 Columbia/HCA Healthcare
Corp. ..................... 1,268,250
2,200 Community Psychiatric
Centers, Inc.(b)........... 25,300
7,000 Manor Care, Inc. ............ 274,750
10,500 Tenet Healthcare Corp.(b).... 224,438
------------
2,776,588
------------
Medical Supplies (0.8%):
3,500 Bausch & Lomb, Inc. ......... 136,063
1,600 Biomet, Inc.(b).............. 30,000
20,500 Medtronic, Inc. ............. 1,171,063
4,300 St. Jude Medical, Inc. ...... 189,737
3,100 U.S. Surgical Corp. ......... 73,237
------------
1,600,100
------------
Metal & Mineral Production (0.2%):
5,700 Newmont Mining Corp. ........ 319,200
------------
Metals--Fabrication (0.3%):
2,500 Asarco, Inc. ................ 79,375
2,400 Barrick Gold Corp. .......... 70,500
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Metals--Fabrication, Continued:
100 Freeport McMoran............. $ 2,963
3,400 Harcourt General, Inc. ...... 132,600
8,100 Inco, Ltd.................... 283,500
900 Phelps Dodge Corp. .......... 56,700
100 Santa Fe Pacific Gold
Corp. ..................... 1,637
------------
627,275
------------
Mobile Homes & Manufactured Housing (0.1%):
5,600 Fleetwood Enterprises,
Inc. ...................... 142,800
------------
Newspapers (0.6%):
3,200 Dow Jones & Co., Inc. ....... 125,200
8,600 Gannett Co., Inc. ........... 546,100
700 Knight-Ridder, Inc. ......... 46,463
6,000 New York Times Co., Class
A.......................... 174,000
4,400 Tribune Co. ................. 275,550
------------
1,167,313
------------
Office Equipment & Supplies (0.3%):
2,400 Moore & Associates, Ltd. .... 47,400
5,500 Pitney Bowes, Inc. .......... 248,875
3,000 Xerox Corp. ................. 370,875
------------
667,150
------------
Oil & Gas Exploration, Production, & Services (0.3%):
100 Amerada Hess Corp. .......... 5,512
100 Ashland, Inc. ............... 3,675
100 Burlington Resources......... 3,750
100 Eastern Enterprises.......... 3,450
15,300 Enron Corp. ................. 566,100
100 Enserch Corp. ............... 1,463
100 Helmerich & Payne, Inc. ..... 3,150
100 Louisiana Land & Exploration
Co. ....................... 4,300
------------
591,400
------------
Oil & Gas Production (0.5%):
6,000 Kerr McGee Corp. ............ 379,500
7,600 Noram Energy Corp.(b)........ 66,500
2,100 Peoples Energy Corp. ........ 68,513
16,000 Phillips Petroleum Co. ...... 522,000
100 Rowan Cos., Inc. ............ 1,088
1,500 Santa Fe Energy Partners..... 14,437
</TABLE>
Continued
-51-
<PAGE> 53
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Oil & Gas Production, Continued:
100 Sun Co., Inc. ............... $ 2,725
------------
1,054,763
------------
Oil--Integrated Companies (6.8%):
17,400 Amoco Corp. ................. 1,224,525
9,800 Atlantic Richfield Co. ...... 1,113,525
35,700 Chevron Corp. ............... 1,851,937
79,200 Exxon Corp. ................. 6,355,800
9,400 Mobil Corp. ................. 1,041,050
100 Occidental Petroleum
Corp. ..................... 2,150
1,600 Oneok, Inc. ................. 33,400
100 Oryx Energy Co.(b)........... 1,312
100 Pennzoil Co. ................ 4,063
14,900 Royal Dutch Petroleum Co. ... 2,071,100
100 Texaco, Inc. ................ 8,088
100 USX--Marathon Group.......... 1,875
7,400 Unocal Corp. ................ 221,075
------------
13,929,900
------------
Oilfield Equipment & Services (1.1%):
19,000 Dresser Industries, Inc. .... 494,000
13,900 Halliburton Co. ............. 717,588
100 McDermott International,
Inc. ...................... 1,938
9,100 Schlumberger, Ltd............ 638,137
3,300 Western Atlas, Inc.(b)....... 176,550
6,300 Williams Cos., Inc. ......... 296,887
------------
2,325,100
------------
Paint, Varnishes, Enamels (0.0%):
100 Sherwin Williams Co. ........ 4,213
------------
Pharmaceuticals (5.7%):
31,100 Abbott Laboratories.......... 1,313,975
4,000 Allergan, Inc. .............. 133,000
100 Alza Corp., Class A(b)....... 2,825
3,100 American Home Products
Corp. ..................... 316,200
15,100 Amgen, Inc.(b)............... 907,888
14,600 Bristol-Myers Squibb Co. .... 1,292,100
12,500 Eli Lilly & Co. ............. 718,750
49,600 Merck & Co., Inc. ........... 3,484,400
23,300 Pfizer, Inc. ................ 1,601,875
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Pharmaceuticals, Continued:
17,400 Pharmacia & Upjohn,
Inc.(b) ................... $ 728,625
21,200 Schering-Plough.............. 1,147,450
1,700 Warner-Lambert Co. .......... 159,374
------------
11,806,462
------------
Photography (0.4%):
7,500 Eastman Kodak Co. ........... 550,312
4,000 Polaroid Corp. .............. 179,500
------------
729,812
------------
Pollution Control Services & Equipment (0.6%):
12,900 Browning-Ferris Industries,
Inc. ...................... 380,550
100 Ogden Corp. ................. 2,325
3,400 Safety Kleen................. 51,000
24,700 WMX Technologies, Inc. ...... 737,913
------------
1,171,788
------------
Precision Instruments & Related (0.2%):
4,900 Johnson Controls, Inc. ...... 354,025
2,100 Perkin Elmer................. 99,225
------------
453,250
------------
Printing (0.1%):
1,800 John H. Harland Co. ......... 39,600
1,700 Meredith Corp. .............. 77,350
------------
116,950
------------
Publishing, Except Newspaper (0.6%):
100 Deluxe Corp. ................ 2,938
2,800 Mcgraw Hill, Inc. ........... 249,200
4,300 R.R. Donnelley & Sons Co. ... 154,262
17,700 Time Warner, Inc. ........... 734,550
------------
1,140,950
------------
Publishing Newspapers (0.1%):
6,900 Times Mirror Co., Class A.... 213,900
------------
Radio & Television (1.2%):
8,000 Capital Cities ABC, Inc. .... 1,029,000
9,300 Tele-Communications, Class
A.......................... 196,462
28,700 U.S. West Media Group(b)..... 606,287
13,400 Viacom, Inc., Class B(b)..... 542,700
------------
2,374,449
------------
</TABLE>
Continued
-52-
<PAGE> 54
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Railroad & Railroad Holding Companies (0.8%):
3,400 Conrail, Inc. ............... $ 240,550
8,300 Norfolk & Southern Co. ...... 654,662
12,800 Union Pacific Corp. ......... 852,800
------------
1,748,012
------------
Restaurants (0.6%):
100 Darden Restaurants,
Inc.(b).................... 1,150
1,400 Luby's Cafeterias, Inc. ..... 29,400
20,000 Mcdonald's Corp. ............ 1,005,000
100 Ryan's Family Steak Houses,
Inc.(b).................... 700
100 Shoney's, Inc.(b)............ 825
10,000 Wendy's International........ 206,250
------------
1,243,325
------------
Retail (2.0%):
4,700 American Stores Co. ......... 122,200
4,000 Dayton Hudson Corp. ......... 299,000
4,600 Dillard Department Stores,
Inc. ...................... 133,400
3,500 Federated Department
Stores(b).................. 94,500
11,200 K Mart Corp. ................ 65,800
11,900 May Department Stores........ 529,550
100 Nordstrom, Inc. ............. 3,925
11,300 Price/Costco, Inc.(b)........ 176,563
1,400 Rite Aid..................... 44,975
3,300 Sears & Roebuck Co. ......... 136,950
3,900 Tandy Corp. ................. 149,175
95,400 Wal Mart Stores, Inc. ....... 1,943,775
14,600 Walgreen Co. ................ 509,175
100 Woolworth Corp.(b)........... 1,124
------------
4,210,112
------------
Retail--Specialty Stores (1.0%):
100 Charming Shoppes, Inc. ...... 275
7,300 Circuit City Stores, Inc. ... 187,975
15,000 Home Depot, Inc. ............ 690,000
9,200 Lowes Cos., Inc. ............ 286,350
100 Melville Corp. .............. 2,850
3,800 Pep Boys-Manny, Moe &
Jack(b).................... 110,200
4,100 Super Value, Inc. ........... 127,100
9,100 The Gap...................... 428,838
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Retail--Specialty Stores, Continued:
2,700 The Limited, Inc. ........... $ 45,225
4,500 TJX Cos., Inc. .............. 84,937
100 Toys R Us, Inc. ............. 2,212
------------
1,965,962
------------
Rubber & Rubber Products (0.4%):
3,300 B.F. Goodrich, Inc. ......... 242,963
5,100 Cooper Tire & Rubber Co. .... 126,225
9,300 Goodyear Tire & Rubber
Co. ....................... 445,237
------------
814,425
------------
Savings & Loan Companies (0.0%):
2,900 H.F. Ahmanson & Co. ......... 69,600
------------
Semiconductors (0.6%):
3,300 Advanced Micro Devices,
Inc.(b).................... 65,588
22,200 Intel Corp. ................. 1,226,202
100 LSI Logic Corp.(b)........... 2,812
2,400 National Semiconductor
Corp.(b)................... 41,400
------------
1,336,002
------------
Services (Non-Financial) (0.1%):
7,000 Service Corp.
International.............. 303,624
------------
Shoes, Leather Goods, Clothing Accessories (0.3%):
100 Brown Group, Inc. ........... 1,374
8,800 Nike, Inc., Class B.......... 613,800
100 Reebok International, Ltd.... 2,700
3,000 Stride Rite Corp. ........... 24,750
------------
642,624
------------
Soaps & Cleaning Agents (2.7%):
5,600 Clorox Co. .................. 462,700
8,900 Colgate Palmolive, Inc. ..... 658,600
37,000 Procter & Gamble Co. ........ 3,103,375
9,800 Unilever N V................. 1,419,775
------------
5,644,450
------------
Software & Computer Services (1.5%):
100 Autodesk, Inc. .............. 3,025
8,100 Computer Associates
International, Inc. ....... 553,837
3,500 Computer Sciences Corp. ..... 266,875
3,000 Intergraph Corp.(b).......... 55,500
</TABLE>
Continued
-53-
<PAGE> 55
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Software & Computer Services, Continued:
22,600 Microsoft Corp.(b)........... $ 2,090,500
2,000 Novell, Inc.(b).............. 27,000
------------
2,996,737
------------
Steel (0.3%):
6,400 Armco, Inc.(b)............... 35,200
100 Bethlehem Steel Corp.(b)..... 1,512
100 Inland Steel Industries...... 2,863
5,300 Nucor Corp. ................. 308,062
1,900 Timken Co. .................. 78,612
100 USX-U S Steel Group.......... 3,563
5,500 Worthington Industries,
Inc. ...................... 115,500
------------
545,312
------------
Telecommunications (2.1%):
33,400 Airtouch Communications,
Inc.(b).................... 943,550
11,500 Alltel Corp. ................ 360,813
2,300 Andrew Corp.(b).............. 101,200
26,600 Bell Atlantic Corp. ......... 1,832,075
7,000 DSC Communications Corp. .... 203,874
14,000 Northern Telecom, Ltd. ...... 630,000
3,900 Tellabs, Inc.(b)............. 171,600
------------
4,243,112
------------
Textile Manufacturing (0.1%):
100 Fruit of the Loom(b)......... 2,512
2,300 Russell Corp. ............... 63,250
1,200 Springs Industries, Inc. .... 48,000
3,800 V F Corp. ................... 191,900
------------
305,662
------------
Tobacco & Tobacco Products (1.6%):
3,200 American Brands.............. 146,000
28,900 Philip Morris Cos., Inc. .... 2,687,700
11,700 UST, Inc. ................... 393,412
------------
3,227,112
------------
Tools & Hardware Manufacturing (0.2%):
1,700 Black & Decker Corp. ........ 57,588
4,200 Snap On Tools Corp. ......... 184,274
2,800 Stanley Works................ 144,200
------------
386,062
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Toys & Bicycles--Manufacturing (0.4%):
23,700 Mattel, Inc. ................ $ 764,324
------------
Transportation Leasing & Trucking (0.3%):
3,700 Burlington Northern Santa
Fe......................... 302,938
100 Caliber System, Inc. ........ 3,800
3,100 CSX Corp. ................... 143,762
50 Pittston Burlington Group.... 993
4,800 Ryder Systems, Inc. ......... 112,200
------------
563,693
------------
Trucking Local & Long Distance (0.0%):
100 Consolidated Freightways,
Inc. ...................... 2,300
50 Roadway Express.............. 550
100 Yellow Corp. ................ 1,200
------------
4,050
------------
Utilities--Electric (2.4%):
200 American Electric Power
Co. ....................... 8,850
16,800 Carolina Power & Light
Co. ....................... 621,600
8,600 Central & South West
Corp. ..................... 235,425
100 Dominion Resources, Inc. .... 4,287
100 DTE Energy Co.(b)............ 3,588
4,600 Duke Power Co. .............. 228,850
100 FPL Group, Inc. ............. 4,637
7,300 General Public Utilities
Corp. ..................... 248,200
15,800 Houston Industries, Inc. .... 379,200
8,800 Niagara Mohawk Power
Corp. ..................... 80,300
100 Northern States Power Co. ... 5,138
5,400 Ohio Edison.................. 128,925
100 PacifiCorp................... 2,125
13,600 Peco Energy Co. ............. 418,200
14,200 Public Service Enterprise
Group, Inc. ............... 443,750
19,400 P.P. & L. Resources, Inc. ... 499,550
100 SCE Corp. ................... 1,850
5,800 Southern Co. ................ 147,175
18,700 Texas Utilities Co. ......... 764,363
13,200 Unicom Corp. ................ 443,850
6,200 Union Electric Co. .......... 264,274
------------
4,934,137
------------
</TABLE>
Continued
-54-
<PAGE> 56
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Utilities--Electric & Gas (0.5%):
8,900 Baltimore Gas & Electric..... $ 255,875
9,300 Consolidated Edison.......... 313,875
15,700 Pacific Gas & Electric
Co. ....................... 435,674
------------
1,005,424
------------
Utilities--Natural Gas (0.3%):
4,600 Coastal Corp. ............... 174,225
3,200 Columbia Gas Systems,
Inc.(b) ................... 138,800
4,400 Consolidated Natural Gas..... 198,000
100 Nicor, Inc. ................. 2,725
100 Pacific Enterprises.......... 2,775
2,500 Panhandle Eastern Corp. ..... 72,187
100 Sonat, Inc................... 3,450
------------
592,162
------------
Utilities--Telecommunications (6.2%):
65,600 A T & T Corp. ............... 4,387,000
17,800 Ameritech Corp. ............. 1,070,225
27,100 Bellsouth Corp. ............. 1,161,913
19,200 GTE Corp..................... 883,200
22,500 MCI Telecommunications
Corp....................... 644,062
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Utilities--Telecommunications, Continued:
14,000 Nynex Corp. ................. $ 750,750
18,500 Pacific Telesis Group........ 545,750
36,000 SBC Communications, Inc. .... 2,038,500
8,600 Sprint Corp.................. 370,875
28,600 U.S. West, Inc............... 1,004,575
------------
12,856,850
------------
Total Common Stocks 193,493,710
------------
INVESTMENT COMPANIES (4.7%):
475,000 SEI Index--S&P 500 Index
Fund(b).................... 9,642,500
------------
Total Investment Companies 9,642,500
------------
Investments, at value 203,136,210
------------
REPURCHASE AGREEMENTS (1.1%):
2,339,431 Merrill Lynch, 5.68%,
2/1/96(c).................. 2,339,431
------------
Total Repurchase Agreements 2,339,431
------------
Total (Cost--$177,783,168)(a) $205,475,641
============
<FN>
- ---------
Percentages indicated are based on net assets of $205,718,907.
(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 $71,000. Cost for federal income tax purposes differs from
value by net unrealized appreciation of securities as follows:
Unrealized appreciation.... $29,743,650
Unrealized depreciation.... (2,122,177)
-----------
Net unrealized
appreciation............. $27,621,473
==========
(b) Non-income producing securities.
(c) Fully collateralized by U.S. Treasury Strips.
(d) Related party.
</TABLE>
See notes to financial statements.
-55-
<PAGE> 57
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS (97.8%):
AUSTRALIA (2.6%):
Banking (0.4%):
31,436 National Australia Bank,
Ltd.(b).................... $ 302,946
42,967 Westpac Banking Corp. ....... 205,755
------------
508,701
------------
Beverages (0.1%):
13,481 Coca-Cola Amatil, Ltd.(b).... 127,004
22,024 Foster Brewing Group(b)...... 36,905
------------
163,909
------------
Building Materials (0.1%):
33,380 Boral, Ltd.(b)............... 84,025
26,892 Pioneer International,
Ltd.(b).................... 75,503
------------
159,528
------------
Business & Public Services (0.1%):
5,017 Brambles Industries,
Ltd.(b).................... 59,221
------------
Chemicals (0.1%):
7,707 ICI Australia, Ltd.(b)....... 61,300
------------
Diversified (0.0%):
13,471 Southcorp Holdings,
Ltd.(b).................... 33,007
------------
Energy (0.5%):
43,560 Broken Hill Proprietary
Co.(b)..................... 614,753
------------
Food Processing & Packaging (0.1%):
14,371 Burns Philp & Co., Ltd.(b)... 31,573
31,439 Goodman Fielder, Ltd.(b)..... 31,609
------------
63,182
------------
Forest Products (0.1%):
18,082 Amcor, Ltd.(b)............... 135,472
------------
Merchandising (0.1%):
34,093 Coles Myer, Ltd.(b).......... 110,194
------------
Metals--Non Ferrous (0.2%):
26,428 M.I.M. Holdings(b)........... 32,672
5,953 Newcrest Mining, Ltd.(b)..... 26,867
22,923 North, Ltd.(b)............... 63,336
24,866 Western Mining Holdings,
Ltd.(b).................... 152,964
------------
275,839
------------
Metals--Steel (0.1%):
9,303 CRA, Ltd.(b)................. 132,192
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Australia, Continued:
Metals--Steel, Continued:
698 CRA, Ltd., New Ordinary(b)... $ 9,669
------------
141,861
------------
Multi-Industry (0.2%):
26,547 CSR, Ltd.(b)................. 86,991
34,457 Pacific Dunlop, Ltd.(b)...... 86,222
------------
173,213
------------
Oil & Gas Exploration, Production, & Services (0.0%):
9,502 Santos, Ltd.(b).............. 27,952
------------
Publishing & Broadcasting (0.3%):
24,951 News Corp., Ltd.,
Preferred(b)............... 120,226
41,753 News Corp., Ltd.(b).......... 225,439
------------
345,665
------------
Real Estate (0.2%):
6,002 Lend Lease Corp., Ltd.(b).... 91,633
59,092 Westfield Trust(b)........... 109,140
------------
200,773
------------
Transportation (0.0%):
21,280 TNT, Ltd.(b)................. 24,881
------------
Total Australia 3,099,451
------------
AUSTRIA (0.4%):
Banking (0.1%):
1,386 Bank Austria(b).............. 108,899
674 Creditanstalt Bank
Verein(b).................. 41,747
------------
150,646
------------
Beverages (0.1%):
1,785 Oesterreichische Brau-
Beteiligungs(b)............ 89,575
------------
Building Materials (0.0%):
256 Weinerberger Baust(b)........ 58,115
------------
Energy (0.0%):
340 OMV(b)....................... 32,174
------------
Engineering & Construction (0.1%):
539 VA Technologie(b)............ 70,686
------------
Insurance--Property, Casualty, Health & Other (0.0%):
83 EA-Generali(b)............... 29,354
------------
</TABLE>
Continued
-56-
<PAGE> 58
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Austria, Continued:
Transportation--Airlines (0.0%):
141 Austrian Airlines(b)......... $ 26,280
------------
Transportation--Misc. (0.1%):
772 Flughafen Wien AG(b)......... 50,326
------------
Utilities--Electric & Gas (0.0%):
367 Oesterrichische
Elektrizitaetswirschafts(b)... 23,643
------------
Total Austria 530,799
------------
BELGIUM (1.1%):
Banking (0.0%):
155 Kredietbank(b)............... 43,982
------------
Building Materials (0.0%):
63 Comenteries CBR
Cementbedrij(b)............ 24,714
------------
Chemicals (0.2%):
425 Gevaert Photo-Production
NV(b)...................... 26,675
262 Solvay(b).................... 145,603
------------
172,278
------------
Construction (0.0%):
150 Electrabel Sa Bef Parts Soc
Avavtages Fiscaux(b)....... 36,335
------------
Energy (0.2%):
642 Petrofina(b)................. 188,885
------------
Industrial Goods & Services (0.1%):
87 Bekaert(b)................... 77,430
------------
Insurance--Property, Casualty, Health & Other (0.2%):
847 Fortis(b).................... 103,833
283 Generale de Banque(b)........ 105,466
334 Royale Delge Belgian(b)...... 69,879
------------
279,178
------------
Metals--Non Ferrous (0.0%):
453 Union Miniere Sa
Bedfords(b)................ 33,246
------------
Multi-Industry (0.1%):
291 Group Bruxelles Lambert(b)... 39,193
254 Tractebel Belgian(b)......... 110,434
------------
149,627
------------
Retail (0.1%):
1,220 Delhaize Freres & CIE le
Lion(b).................... 51,289
------------
Utilities--Electric & Gas (0.2%):
1,037 Electrabel(b)................ 250,860
------------
Total Belgium 1,307,824
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
BRITAIN (16.4%):
Aerospace/Defense (0.2%):
12,267 British Aerospace PLC(b)..... $ 165,336
40,239 Rolls-Royce PLC(b)........... 124,034
------------
289,370
------------
Automotive Parts (0.2%):
12,423 BBA Group(b)................. 56,126
5,104 GKN PLC(b)................... 63,702
26,193 Lucas Industries PLC......... 78,562
11,389 T & N PLC(b)................. 28,050
------------
226,440
------------
Banking (2.3%):
27,732 Abbey National PLC(b)........ 252,676
32,964 Barclays PLC(b).............. 395,481
23,639 H.S.B.C. Holdings PLC (HK
$10)(b).................... 398,976
37,362 H.S.B.C. Holdings PLC
(75P)(b)................... 619,865
179,227 Lloyds TSB Group(b).......... 873,370
19,299 Royal Bank of Scotland PLC... 162,717
------------
2,703,085
------------
Beverages (1.0%):
65,656 B.A.T. Industries PLC(b)..... 579,861
18,036 Bass PLC..................... 203,440
45,723 Guinness PLC(b).............. 315,039
8,929 Scottish & Newcastle PLC..... 85,537
------------
1,183,877
------------
Building Materials (0.5%):
23,176 Blue Circle Industries(b).... 120,465
13,512 BPB Industries PLC(b)........ 63,190
27,777 Pilkington PLC(b)............ 83,313
25,654 Redland PLC(b)............... 154,665
6,560 RMC Group PLC(b)............. 101,699
6,399 Williams Holdings PLC(b)..... 32,971
5,121 Wolseley British............. 35,748
------------
592,051
------------
</TABLE>
Continued
-57-
<PAGE> 59
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Britain, Continued:
Business & Public Services (0.4%):
37,877 Reuters Holdings PLC(b)...... $ 354,840
8,459 Thames Water PLC............. 69,404
------------
424,244
------------
Chemicals (0.7%):
10,225 BOC Group PLC(b)............. 141,676
13,327 Courtaulds PLC(b)............ 86,992
19,118 Imperial Chemical Industries
PLC(b)..................... 238,899
19,536 Zeneca Group PLC(b).......... 380,499
------------
848,066
------------
Commercial Services (0.1%):
36,088 BET PLC(b)................... 71,978
------------
Diversified (0.2%):
25,471 Harrison & Crossfield(b)..... 59,270
30,742 Lasmo PLC(b)................. 76,644
18,874 Lonrho PLC(b)................ 59,747
------------
195,661
------------
Electrical & Electronic (0.4%):
5,025 Electrocomponents(b)......... 26,043
64,948 General Electric Co. ........ 355,745
13,573 Racal Electronics PLC........ 63,372
------------
445,160
------------
Energy (0.8%):
122,660 British Petroleum Co. ....... 979,519
------------
Financial Services (0.2%):
4,834 Mercury Asset Management
Group(b)................... 65,299
4,979 Provident Financial PLC(b)... 59,810
4,911 Schroders PLC(b)............. 95,651
------------
220,760
------------
Food & Household (0.1%):
30,765 Associated British Food(b)... 175,484
------------
Forest Products (0.1%):
17,440 Arjo Wiggins Appleton
PLC(b)..................... 49,673
16,437 Rexam PLC(b)................. 94,378
------------
144,051
------------
Health Care (1.5%):
77,985 Glaxo Wellcome PLC(b)........ 1,132,987
30,833 Smithkline Beecham, Class
A(b)....................... 339,865
28,983 Smithkline Beecham,
Units(b)................... 319,253
------------
1,792,105
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Britain, Continued:
Household Goods (0.7%):
19,665 Cadbury Schweppes PLC(b)..... $ 161,940
9,710 Thorn EMI PLC................ 246,927
16,916 Unilever PLC(b).............. 346,595
7,538 United Biscuits PLC(b)....... 27,905
------------
783,367
------------
Industrial Goods & Services (0.0%):
9,238 BICC PLC(b).................. 40,340
------------
Insurance--Property, Casualty, Health & Other (0.8%):
12,257 Commercial Union PLC(b)...... 113,715
12,060 General Accident PLC(b)...... 118,265
32,478 Guardian Royal Exchange
PLC(b)..................... 129,556
13,650 Legal & General Group(b)..... 147,367
46,801 Prudential Corp. PLC(b)...... 304,080
17,084 Royal Insurance Holdings
PLC(b)..................... 99,384
16,177 Sedgwick Group PLC(b)........ 30,065
------------
942,432
------------
Leisure (0.3%):
24,936 Forte PLC(b)................. 130,367
31,473 Ladbroke Group PLC(b)........ 81,796
20,954 Rank Organisation PLC(b)..... 145,326
------------
357,489
------------
Machine Tools (0.1%):
9,594 Chubb Security............... 48,418
10,467 Smiths Industries PLC(b)..... 103,434
------------
151,852
------------
Manufacturing (0.1%):
11,909 IMI PLC(b)................... 56,503
4,945 T I Group(b)................. 36,388
4,752 Tate & Lyle PLC.............. 33,819
------------
126,710
------------
Materials (0.1%):
16,638 Caradon PLC(b)............... 56,314
------------
</TABLE>
Continued
-58-
<PAGE> 60
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Britain, Continued:
Metals--Non Ferrous (0.3%):
6,443 Johnson Matthew PLC.......... $ 52,668
23,650 RTZ Corp. PLC(b)............. 327,692
------------
380,360
------------
Metals--Steel (0.1%):
43,519 British Steel PLC(b)......... 112,938
------------
Mining (0.0%):
6,066 English China Clays(b)....... 29,605
------------
Multi-Industry (1.0%):
85,202 BTR PLC(b)................... 426,774
43,292 Grand Metropolitan PLC(b).... 290,439
98,513 Hanson PLC(b)................ 301,800
17,020 Pearson PLC(b)............... 171,277
------------
1,190,290
------------
Oil & Gas Exploration, Production, & Services (0.1%):
6,227 Burmah Castrol PLC(b)........ 92,396
------------
Publishing & Broadcasting (0.3%):
6,842 Carlton Communications PLC
Group...................... 107,104
6,060 De La Rue PLC(b)............. 65,470
12,530 Reed International PLC(b).... 196,145
------------
368,719
------------
Real Estate (0.2%):
9,650 Hammerson PLC(b)............. 49,285
9,897 Lank Securities PLC(b)....... 93,315
11,795 MEPC(b)...................... 71,467
6,564 Slough Estates(b)............ 21,324
------------
235,391
------------
Retail (1.4%):
10,276 Argos PLC(b)................. 91,299
30,764 Argyll Group PLC............. 155,026
15,877 Boots Co. PLC................ 149,339
21,084 Great Universal Stores
PLC(b)..................... 219,979
17,053 Kingfisher PLC(b)............ 137,853
59,234 Marks & Spencer PLC(b)....... 388,889
11,029 Next PLC(b).................. 76,325
40,266 Sainsbury PLC(b)............. 240,022
35,380 Sears PLC(b)................. 51,054
40,833 Tesco PLC(b)................. 184,170
------------
1,693,956
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Britain, Continued:
Telecommunications (1.1%):
136,000 British Telecom PLC.......... $ 732,593
46,770 Cable & Wireless PLC......... 314,126
66,924 Vodafone Group PLC........... 240,166
------------
1,286,885
------------
Textile Manufacturing (0.1%):
22,281 Coats Viyella PLC(b)......... 63,630
------------
Transportation--Airlines (0.1%):
19,498 British Airways PLC.......... 155,999
------------
Transportation--Shipping (0.1%):
18,200 Peninsular & Orient Steam
Navigation Co.(b).......... 150,839
------------
Utilities--Electric & Gas (0.8%):
6,437 Anglian Water................ 55,002
87,339 British Gas PLC(b)........... 315,406
3,168 East Midlands Electricity.... 33,364
2,433 London Electricity PLC(b).... 26,616
14,117 National Grid Group(b)....... 42,875
23,155 National Power PLC(b)........ 152,544
5,910 New Southern Electric
PLC(b)..................... 73,941
2,835 Northern Electric
Preferred.................. 4,551
2,507 Northern Electric PLC(b)..... 22,388
16,901 Scottish Power PLC........... 97,042
5,336 Seeboard PLC(b).............. 42,975
12,816 United Utilities PLC......... 113,285
------------
979,989
------------
Total Britian 19,491,352
------------
DENMARK (0.8%):
Banking (0.1%):
1,599 Danske Bank(b)............... 111,636
607 Unidanmark(b)................ 31,099
------------
142,735
------------
Beverages (0.1%):
862 Carlsberg--A(b).............. 48,205
736 Carlsberg--B(b).............. 41,159
------------
89,364
------------
Commercial Services (0.0%):
1,240 ISS International Service
System--B(b)............... 31,011
------------
</TABLE>
Continued
-59-
<PAGE> 61
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Denmark, Continued:
Engineering (0.0%):
321 FLS Industries--B(b)......... $ 27,317
------------
Food & Household (0.1%):
1,829 Danisco(b)................... 90,211
------------
Health Care (0.1%):
1,116 Novo Nordisl--B(b)........... 149,628
------------
Multi-Industry (0.0%):
251 Sophus Berendensen--B(b)..... 28,465
------------
Telecommunications (0.2%):
3,468 Teledanmark, Series B(b)..... 198,917
------------
Transportation--Shipping (0.1%):
3 D/S 1912--B(b)............... 64,345
3 D/S Svenbirg--B(b)........... 92,741
------------
157,086
------------
Total Denmark 914,734
------------
FINLAND (0.5%):
Banking (0.1%):
28,033 Merita, Ltd.(b).............. 73,260
------------
Electrical & Electronic (0.2%):
2,600 Nokia--A(b).................. 101,350
3,400 Nokia--K(b).................. 132,907
------------
234,257
------------
Forest Products (0.1%):
1,000 Kymmene Corp.(b)............. 24,267
3,100 Repola(b).................... 53,782
------------
78,049
------------
Insurance--Property, Casualty, Health & Other (0.0%):
500 Sampo Insurance Co.,
Ltd.(b).................... 29,647
------------
Machine Tools (0.0%):
200 Kone--B(b)................... 15,461
------------
Metals--Non Ferrous (0.1%):
3,500 Outokumpu(b)................. 53,036
------------
Multi-Industry (0.0%):
1,300 Metra--A(b).................. 51,103
------------
Retail (0.0%):
400 Stockmann--A(b).............. 21,785
------------
Wholesale (0.0%):
2,000 Kesko(b)..................... 26,133
------------
Total Finland 582,731
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
FRANCE (6.4%):
Aerospace/Defense (0.1%):
3,150 Thomson CSF(b)............... $ 79,309
------------
Aircraft & Aircraft Parts (0.1%):
100 Sagem(b)..................... 58,715
------------
Automotive Parts (0.1%):
1,750 Valeo(b)..................... 88,738
------------
Automobiles (0.1%):
1,000 Peugeot Citroen(b)........... 146,053
------------
Banking (0.5%):
3,450 Banque Nationale De
Paris(b)................... 145,829
1,800 CIE Financiere De
Paribas--A(b).............. 94,727
4,300 Compagnie De Suez(b)......... 165,762
1,800 Societe Generale Paris(b).... 211,443
------------
617,761
------------
Beverages (0.4%):
1,950 LVMH (LouisVuitton Moet-
Hennessy)(b)............... 434,840
1,400 Pernod Ricard(b)............. 85,380
------------
520,220
------------
Building Materials (0.1%):
1,965 LaFarge(b)................... 132,687
------------
Business & Public Services (0.3%):
2,550 Generale Des Eaux(b)......... 270,589
1,350 Havas(b)..................... 109,951
------------
380,540
------------
Chemicals (0.3%):
1,500 L'Air Liquide(b)............. 270,765
5,850 Rhone-Poulenc(b)............. 136,293
------------
407,058
------------
Commercial Services (0.1%):
250 Ecco(b)...................... 43,512
200 Sodexho(b)................... 64,412
------------
107,924
------------
</TABLE>
Continued
-60-
<PAGE> 62
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
France, Continued:
Construction & Housing (0.1%):
700 Bouygues(b).................. $ 70,853
------------
Diversified (0.0%):
2,100 Lagardere Groupe(b).......... 47,898
------------
Electrical & Electronic (0.3%):
3,350 Alcatel Alsthom(b)........... 305,896
400 Legrand French(b)............ 71,343
------------
377,239
------------
Energy (0.7%):
7,450 ELF Aquitaine(b)............. 557,320
4,800 Total--B(b).................. 328,630
------------
885,950
------------
Financial Services (0.1%):
750 Compagnie Bancaire(b)........ 76,208
850 Credir Foncier De
France(b).................. 11,649
105 Eurafrance(b)................ 37,619
100 Eurafrance--New Rights(b).... 1,859
------------
127,335
------------
Furniture (0.0%):
1,050 Moulinex(b).................. 17,987
------------
Health Care (0.5%):
1,705 L'Oreal(b)................... 483,353
1,920 Sanofi(b).................... 127,430
------------
610,783
------------
Household Goods (0.3%):
650 Eridania Beghin--Gay(b)...... 113,641
1,450 Groupe Danone(b)............. 229,945
------------
343,586
------------
Industrial Goods & Services (0.1%):
2,300 Michelin(b).................. 97,715
------------
Insurance--Property, Casualty, Health & Other (0.1%):
6,350 Compagnie UAP(b)............. 148,439
------------
Leisure (0.1%):
850 Accor(b)..................... 110,999
------------
Machine Tools (0.1%):
2,800 Schneider(b)................. 114,571
200 Sidel(b)..................... 59,909
------------
174,480
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
France, Continued:
Manufacturing (0.1%):
500 BIC(b)....................... $ 55,798
250 St Louis-Bouchon(b).......... 72,928
------------
128,726
------------
Materials (0.3%):
2,150 Carnaudmentalbox(b).......... 91,763
2,308 Compagnie De
Saint-Gobain(b)............ 288,740
------------
380,503
------------
Merchandising (0.5%):
550 Carrefour Supermarche(b)..... 353,835
650 Pinault-Printemps(b)......... 149,146
350 Promodes(b).................. 93,603
------------
596,584
------------
Metals--Steel (0.1%):
9,450 Usinor Sacilor(b)............ 138,575
------------
Multi-Industry (0.3%):
3,400 AXA(b)....................... 213,010
2,550 AXA Rights(b)................ 4,967
1,200 Lyonnaise Des Eaux(b)........ 112,418
------------
330,395
------------
Publishing & Broadcasting (0.1%):
600 Canal Plus(b)................ 121,345
------------
Real Estate (0.1%):
650 SEFIMEG(b)................... 42,504
800 Simco(b)..................... 70,638
250 Unibail(b)................... 24,962
------------
138,104
------------
Retail (0.1%):
1,550 Casino Guichard
Perrachon(b)............... 50,071
150 Comptoirs Modernes(b)........ 51,539
200 Docks De France(b)........... 34,027
------------
135,637
------------
</TABLE>
Continued
-61-
<PAGE> 63
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
France, Continued:
Textiles (0.0%):
200 Chargeurs French(b).......... $ 46,009
------------
Total France 7,568,147
------------
GERMANY (7.0%):
Automobiles (0.7%):
1,047 Daimler-Benz(b).............. 577,300
750 Volkswagen(b)................ 273,962
150 Volkswagen Preferred
Shares(b).................. 40,629
------------
891,891
------------
Banking (1.0%):
6,550 Bayer Hypoth-Und Bank(b)..... 172,347
7,250 Bayer Vereinsban(b).......... 219,027
9,800 Deutsche Bank(b)............. 489,970
10,000 Dresdner Bank(b)............. 268,165
------------
1,149,509
------------
Beverages (0.0%):
150 Brau Und Brunnen(b).......... 21,877
------------
Building Materials (0.1%):
50 Bilfinger & Berger Bau(b).... 19,827
105 Heidelberg Zement(b)......... 66,688
------------
86,515
------------
Business & Public Services (0.3%):
1,220 SAP AG(b).................... 187,605
910 SAP AG; Preferred
Shares(b).................. 139,996
------------
327,601
------------
Chemicals (0.6%):
900 BASF(b)...................... 214,673
1,600 Bayer(b)..................... 477,240
------------
691,913
------------
Construction & Housing (0.1%):
880 Agiv(b)...................... 16,738
350 Hochtief(b).................. 156,664
------------
173,402
------------
Diversified (0.0%):
3,400 Kloeckner Humboldt
Deutz(b)................... 22,280
------------
Electrical & Electronic (0.6%):
1,287 Siemens(b)................... 731,344
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Germany, Continued:
Engineering (0.0%):
100 Strabag(b)................... $ 16,164
------------
Forest Products (0.0%):
200 Papierwerke Waldhof-
Aschaffenburg(b)........... 28,900
------------
Health Care (0.2%):
100 Beiersdorf(b)................ 76,551
1,950 Schering(b).................. 141,150
------------
217,701
------------
Insurance--Property, Casualty, Health & Other (1.2%):
500 Allianz Holding(b)........... 974,199
100 Aach & Mun(b)................ 75,947
50 Colonia Konz(b).............. 40,493
150 Munchener Ruckvers(b)........ 326,637
------------
1,417,276
------------
Machine Tools (0.4%):
100 Linde(b)..................... 60,489
750 Mannesmann(b)................ 260,503
400 M.A.N.(b).................... 118,288
------------
439,280
------------
Materials (0.1%):
300 Degussa(b)................... 109,786
------------
Merchandising (0.2%):
100 Deut Kaufhaus(b)............. 59,144
400 Karstadt(b).................. 159,017
150 Kaufhof Holding(b)........... 49,197
------------
267,358
------------
Metals--Steel (0.1%):
550 Thyssen(b)................... 106,089
------------
Multi-Industry (0.2%):
350 Preussag(b).................. 103,738
350 Viag(b)...................... 151,489
------------
255,227
------------
Pharmaceuticals (0.2%):
4,900 Merck(b)..................... 199,572
------------
Rubber & Rubber Products (0.0%):
1,650 Continental Gummiwerke(b).... 27,170
------------
</TABLE>
Continued
-62-
<PAGE> 64
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Germany, Continued:
Transportation--Airlines (0.2%):
1,200 Lufthansa(b)................. $ 179,450
------------
Transportation--Marine (0.0%):
550 Bremer Vulk Schiffb(b)....... 11,165
------------
Utilities--Electric & Gas (0.8%):
713 RWE(b)....................... 279,854
525 RWE Preferred Shares(b)...... 156,312
11,082 Veba(b)...................... 493,066
------------
929,232
------------
Total Germany 8,300,702
------------
HOLLAND (3.9%):
Banking (0.3%):
7,232 ABN-AMRO Holding(b).......... 317,785
------------
Beverages (0.2%):
1,057 Heineken(b).................. 188,133
------------
Chemicals (0.2%):
1,878 Akzo Nobel(b)................ 199,654
------------
Computer Software (0.0%):
502 Getronics(b)................. 26,308
------------
Energy (1.4%):
12,037 Royal Dutch Petroleum(b)..... 1,668,424
------------
Financial Services (0.3%):
6,022 International Nederlanden
Groep(b)................... 392,947
------------
Food & Household (0.9%):
3,372 Koninklijke Ahold(b)......... 138,860
1,117 Konklijke Buhrmann(b)........ 28,363
8,287 Philips Electronics(b)....... 330,813
3,840 Unilever NV(b)............... 553,692
------------
1,051,728
------------
Metals--Steel (0.0%):
754 Elsevier NV(b)............... 26,162
------------
Publishing & Broadcasting (0.3%):
17,660 Elsevier(b).................. 245,948
1,083 Wolters Kluwer(b)............ 106,294
------------
352,242
------------
Telecommunications (0.3%):
9,882 Koninkijke PTT
Nederland(b)............... 379,655
------------
Transportation--Airlines (0.1%):
2,588 Royal Dutch Air(b)........... 79,542
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Holland, Continued:
Transportation--Misc (0.0%):
721 Koninklijke Pakhoed(b)....... $ 16,836
------------
Total Holland 4,699,416
------------
HONG KONG (3.4%):
Banking (0.4%):
34,200 Bank of East Asia(b)......... 146,407
38,400 Hang Seng Bank(b)............ 371,235
------------
517,642
------------
Business & Public Services (0.2%):
59,000 Wharf Holdings(b)............ 232,733
------------
Hotels & Motels (0.0%):
19,000 Miramar Hotel & Investment
Co., Ltd.(b)............... 41,283
------------
Multi-Industry (0.8%):
51,000 Hong Kong & Shanghai
Hotel(b)................... 82,119
82,000 Hutchison Whampoa(b)......... 532,913
39,000 Swire Pacific, Ltd., Class
A(b)....................... 340,467
------------
955,499
------------
Publishing & Broadcasting (0.1%):
44,000 South China Morning Post
Holdings, Ltd.(b).......... 31,014
10,000 Television Broadcasts,
Ltd.(b).................... 35,954
------------
66,968
------------
Real Estate (1.1%):
46,000 Cheung Kong(b)............... 342,083
46,000 Hang Lung Development(b)..... 90,429
131,139 Hopewell Holdings(b)......... 88,195
25,000 Hysan Development Co.,
Ltd.(b).................... 76,467
45,000 New World Development(b)..... 226,978
24,000 Shangri-La Asia, Ltd.(b)..... 32,747
47,000 Sun Hung Kai Properties(b)... 446,778
------------
1,303,677
------------
Telecommunications (0.4%):
269,989 Hong Kong Telecom(b)......... 513,298
------------
Transportation--Airlines (0.1%):
71,000 Cathay Pacific Airways(b).... 131,770
------------
</TABLE>
Continued
-63-
<PAGE> 65
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Hong Kong, Continued:
Transportation--Marine (0.0%):
32,000 Shun Tak Holdings, Ltd.(b)... $ 24,004
------------
Utilities--Electric & Gas (0.2%):
40,500 China Light & Power Co.(b)... 196,423
39,000 Hong Kong & China Gas(b)..... 70,111
------------
266,534
------------
Total Hong Kong 4,053,408
------------
IRELAND (0.3%):
Banking (0.0%):
10,219 Allied Irish Banks(b)........ 57,094
------------
Building Materials (0.0%):
5,485 CRM PLC(b)................... 41,203
------------
Food & Household (0.1%):
5,181 Greencore PLC(b)............. 43,784
4,102 Kerry Group PLC(b)........... 32,419
------------
76,203
------------
Forest Products (0.0%):
13,142 Jefferson Smurfit Group
PLC(b)..................... 30,645
------------
Insurance--Life (0.0%):
7,714 Irish Life PLC(b)............ 31,147
------------
Publishing--Newspaper (0.0%):
5,477 Independant Newspapers(b).... 34,715
------------
Utilities--Water (0.0%):
34,710 Waterford Wedgewood(b)....... 32,049
------------
Total Ireland 303,056
------------
ITALY (2.2%):
Automobiles (0.3%):
71,000 Fiat SPA(b).................. 238,299
29,000 Fiat SPA--PRIV(b)............ 57,218
24,000 Fiat SPA D RISP(b)........... 45,772
------------
341,289
------------
Banking (0.3%):
19,000 Banca Commerciale
Italiana(b)................ 43,269
57,500 Credito Italiano(b).......... 71,063
23,000 Istituto Banc San Paolo
Tori(b).................... 145,734
8,000 Mediobanca(b)................ 56,211
------------
316,277
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Italy, Continued:
Building Materials (0.0%):
3,500 Italcementi Fabbriche Riunite
Ceme(b).................... $ 23,385
------------
Construction & Housing (0.0%):
3,500 Sirti(b)..................... 21,123
------------
Computer Software (0.0%):
82,500 Ing C Olivetti & C(b)........ 51,498
------------
Diversified (0.0%):
23,400 Parmalat Finanziaria(b)...... 22,607
------------
Energy (0.1%):
16,000 Edison(b).................... 79,498
------------
Financial Services (0.1%):
12,000 Banco Ambrosiano Veneto(b)... 35,383
16,084 Istituto Mobiliare Italiano
Imi(b)..................... 109,883
------------
145,266
------------
Food Processing & Packaging (0.0%):
15,000 Finanziaria Autogrill(b)..... 18,369
15,000 SME Meridonale(b)............ 15,405
------------
33,774
------------
Forest Products (0.0%):
4,000 Burgo(b)..................... 19,824
------------
Industrial Goods & Services (0.1%):
50,000 Pirelli(b)................... 67,911
------------
Insurance--Property, Casualty, Health & Other (0.5%):
2,000 Sai Sta Assicuratrice
Industriale(b)............. 21,945
16,500 Assicurazioni Generali(b).... 413,535
61,697 Instituto Nazionale Delle
Assicurazioninspa(b)....... 88,636
3,575 R.A.S.(b).................... 19,725
9,075 R.A.S.(b).................... 100,428
------------
644,269
------------
Multi-Industry (0.1%):
80,000 Montedison(b)................ 50,590
20,000 SNIA(b)...................... 17,566
------------
68,156
------------
Oil & Gas Exploration, Production, & Services (0.0%):
12,500 Saipem Italian(b)............ 31,211
------------
</TABLE>
Continued
-64-
<PAGE> 66
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Italy, Continued:
Publishing & Broadcasting (0.0%):
2,925 Mondadori (Arnoldo)
Editore(b)................. $ 24,039
------------
Telecommunications (0.5%):
115,000 Telecom Italia(b)............ 194,793
45,000 Telecom Italia--DI RISP(b)... 61,826
180,637 Telecom Italia Mobile(b)..... 324,104
60,025 Tim DI RISP(b)............... 67,782
------------
648,505
------------
Textiles (0.0%):
3,500 Benetton Group(b)............ 41,016
------------
Utilities--Electric & Gas (0.1%):
19,000 Italgas(b)................... 62,876
------------
Total Italy............................. 2,642,524
------------
JAPAN (39.5%):
Automobiles (2.3%):
22,000 Honda Motor Co.(b)........... 481,504
58,000 Nissan Motor Co., Ltd.(b).... 458,401
84,000 Toyota Motor Corp.(b)........ 1,807,043
------------
2,746,948
------------
Banking (7.9%):
54,000 Asahi Bank, Ltd.(b).......... 646,495
18,000 Ashikaga Bank(b)............. 108,086
47,000 Bank Of Tokyo(b)............. 760,511
29,000 Bank Of Yokohama(b).......... 222,148
20,000 Chiba Bank(b)................ 169,480
72,000 Dai-Ichi Kangyo Bank(b)...... 1,353,598
64,000 Fuji Bank, Ltd.(b)........... 1,454,613
13,000 Gunma Bank(b)................ 133,751
18,000 The Hokuriku Bank(b)......... 105,224
49,000 Industrial Bank Of
Japan(b)................... 1,361,174
17,000 Joyo Bank(b)................. 134,518
77,000 Sakura Bank, Ltd.(b)......... 885,844
16,000 Shizuoka Bank(b)............. 194,547
70,000 Sumitomo Bank(b)............. 1,342,187
42,000 Tokai Bank(b)................ 573,541
------------
9,445,717
------------
Beverages (0.4%):
2,000 Asahi Breweries, Ltd.(b)..... 23,009
21,000 Kirin Brewery Co., Ltd.(b)... 255,343
12,000 Sapporo Breweries(b)......... 109,994
5,000 Takara Shuzo Co., Ltd.(b).... 62,199
------------
450,545
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Building Materials (0.6%):
17,000 Chichibu Onoda Cement
Corp.(b)................... $ 97,788
6,000 Nihon Cement Co., Ltd.(b).... 40,687
9,000 Sanwa Shutter Corp.(b)....... 71,973
9,000 Sekisui Chemical(b).......... 121,218
4,000 Tostem Corp.(b).............. 131,693
12,000 Toto, Ltd.(b)................ 166,113
4,000 Toyo Seikan Kaisha,
Ltd.(b).................... 126,830
------------
756,302
------------
Business & Public Services (0.6%):
19,000 Dai Nippon Printing Co.,
Ltd.(b).................... 325,212
7,000 Dai Nippon Screen(b)......... 60,431
29,000 Toppan Printing Co.,
Ltd.(b).................... 387,878
------------
773,521
------------
Chemicals (1.6%):
51,000 Asahi Chemical Industry(b)... 370,640
14,000 Dai Nippon Ink & Chemical,
Inc.(b).................... 66,651
6,000 Daicel Chemical
Industries(b).............. 33,672
33,000 Denki Kagaku Kogyo(b)........ 127,166
13,000 Kaneka Corp.(b).............. 84,385
52,000 Mitsubishi Chemical
Corp.(b)................... 267,502
19,000 Mitsui Toatsu Chemical(b).... 76,949
6,000 Nippon Shokubai Co. ......... 63,976
8,000 Shin-Etsu Chemical(b)........ 161,624
37,000 Showa Denko K. K.(b)......... 119,394
39,000 Sumitomo Chemical Co.,
Ltd.(b).................... 189,683
29,000 Toray Industries, Inc.(b).... 188,785
7,000 Tosoh Corp.(b)............... 31,361
20,000 Ube Industries, Ltd.(b)...... 78,193
------------
1,859,981
------------
Construction & Housing (1.4%):
16,000 Aoki Corp.(b)................ 67,792
19,000 Daiwa House Industry(b)...... 302,109
40,000 Fujita Corp.(b).............. 188,561
9,000 Haseko Corp.(b).............. 35,271
22,000 Kajima Corp.(b).............. 232,521
</TABLE>
Continued
-65-
<PAGE> 67
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Construction & Housing, Continued:
4,000 Misawa Homes(b).............. $ 34,046
12,000 Ohbayashi Corp.(b)........... 97,423
10,000 Penta-Ocean
Construction(b)............ 72,768
17,000 Sekisui House, Ltd.(b)....... 216,247
19,000 Shimizu Corp.(b)............. 200,814
26,000 Taisei Corp.(b).............. 176,065
------------
1,623,617
------------
Data Processing (0.5%):
38,000 Fujitsu, Ltd.(b)............. 408,736
14,000 Ricoh(b)..................... 149,277
------------
558,013
------------
Diversified (0.5%):
4,000 Ebara Corp.(b)............... 57,616
2,000 Kurita Water(b).............. 51,817
4,000 Makita Corp.(b).............. 65,473
24,000 Mitsubishi Materials(b)...... 129,074
12,000 NSK, Ltd.(b)................. 87,546
6,000 Shimano, Inc. ............... 116,167
6,000 Toyoda Automatic Loom
Works(b)................... 112,239
------------
619,932
------------
Electrical & Electronic (1.2%):
73,000 Hitachi, Ltd.(b)............. 737,408
46,000 Mitsubishi Electric
Corp.(b)................... 333,442
31,000 NEC Corp.(b)................. 376,935
------------
1,447,785
------------
Electronic Components (1.3%):
2,000 Advantest Corp.(b)........... 97,835
3,000 Alps Electric Co., Ltd.(b)... 33,110
4,900 Fanuc(b)..................... 214,030
4,000 Kyocera(b)................... 283,964
4,000 Myrata Manufacturing(b)...... 138,802
6,000 Omron Corp.(b)............... 132,442
5,000 Pioneeer Electronic
Corp.(b)................... 101,950
3,000 Rohm Co., Ltd.(b)............ 166,113
3,000 Secom Co., Ltd.(b)........... 195,295
3,000 Tokoy Electron, Ltd.(b)...... 111,116
1,000 Uniden Corp.(b).............. 19,922
11,000 Yokogawa Electric(b)......... 103,915
------------
1,598,494
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Energy (0.5%):
39,000 Japan Energy Corp.(b)........ $ 123,659
17,000 Mitsubishi Oil Co.,
Ltd.(b).................... 146,761
48,000 Nippon Oil Co., Ltd.(b)...... 282,393
------------
552,813
------------
Engineering (0.3%):
2,000 Daito Trust Construction
Co.(b)..................... 22,822
5,000 Kandenko Co.(b).............. 63,602
8,000 Kinden Corp.(b).............. 138,428
9,000 Kumagi Gumi Co., Ltd.(b)..... 36,281
4,000 Sumitomo Forestry Co.,
Ltd.(b).................... 64,724
5,000 Toa Corp.(b)................. 35,729
------------
361,586
------------
Entertainment (0.3%):
3,400 Sega Enterprise, Ltd.(b)..... 175,541
700 Toho Co., Ltd.(b)............ 113,268
5,000 Tokyo Dome Corp.(b).......... 92,129
------------
380,938
------------
Financial Services (2.3%):
10,000 77 Bank(b)................... 91,007
28,000 Daiwa Securities Co.,
Ltd.(b).................... 419,024
4,000 Jaccs(b)..................... 39,284
30,000 Mitsubishi Trust &
Banking(b)................. 465,790
27,000 Mitsui Trust & Banking(b).... 292,943
43,000 Nomura Securities Co.,
Ltd.(b).................... 933,077
2,000 Orix Corp.(b)................ 84,179
4,000 Yamaguchibank(b)............. 67,343
32,000 Yamaichi Securities(b)....... 246,925
25,000 Yasuda Trust & Banking(b).... 144,976
------------
2,784,548
------------
Food & Household (0.5%):
14,000 Ajinomoto(b)................. 163,681
18,000 Kao Corp.(b)................. 227,283
15,000 Meiji Seika(b)............... 89,791
11,000 Nichirei Corp.(b)............ 72,946
------------
553,701
------------
Food Processing & Packaging (0.2%):
2,000 House Foods Corp.(b)......... 34,046
10,000 Meiji Milk Products(b)....... 60,796
</TABLE>
Continued
-66-
<PAGE> 68
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Food Processing & Packaging, Continued:
3,000 Nissin Food Products(b)...... $ 72,675
5,000 Yamazaki Banking Co.(b)...... 90,258
------------
257,775
------------
Forest Products (0.4%):
12,000 Honshu Paper Co., Ltd.(b).... 78,118
20,000 New Oji Paper Co., Ltd.(b)... 182,762
22,000 Nippon Paperindusto
Ries(b).................... 156,386
------------
417,266
------------
Health Care (1.2%):
13,000 Chugai Pharmaceutical(b)..... 124,024
9,000 Kyowa Hakko Kogyo(b)......... 83,674
10,000 Sankyo Co., Ltd.(b).......... 236,636
8,000 Shiseido Co., Ltd.(b)........ 86,798
11,000 Taisho Pharmaceutical(b)..... 215,031
27,000 Takeda Chemical
Industries(b).............. 426,788
10,000 Tanabe Seiyaku(b)............ 71,552
7,000 Yamanouchi
Pharmaceutical(b).......... 153,204
------------
1,397,708
------------
Hotels & Motels (0.0%):
1,000 Fujita Kanko, Inc.(b)........ 21,045
------------
Household Goods (1.7%):
48,000 Matsushita Electric Co.(b)... 799,139
55,000 Sanyo Electric Co., Ltd. .... 324,089
23,000 Sharp Corp.(b)............... 354,955
8,000 Sony Corp.(b)................ 490,109
------------
1,968,292
------------
Industrial Goods & Services (1.1%):
19,000 Bridgestone Corp.(b)......... 293,224
4,000 N G K Insulators, Ltd.(b).... 70,710
6,000 N G K Sparkplug Co.,
Ltd.(b).................... 40,406
26,000 Nippondenso Co., Ltd.(b)..... 503,390
29,000 Sumitomo Electric
Industries(b).............. 360,754
------------
1,268,484
------------
Insurance--Property, Casualty, Health & Other (0.7%):
22,000 Mitsui Marine & Fire
Insurance(b)............... 162,147
21,000 Sumitomo Marine & Fire(b).... 176,972
6,000 The Nichido Fire &
Marine(b).................. 47,196
19,000 The Nippon Fire & Marine
Insurance(b)............... 119,955
30,000 Tokio Marine & Fire
Insurance(b)............... 376,000
------------
882,270
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Leisure (0.1%):
16,000 Konica Corp.(b).............. $ 116,279
------------
Machine Tools (1.3%):
10,000 Amada Co., Ltd.(b)........... 106,627
9,000 Daikin Industries, Ltd.(b)... 87,546
25,000 Komatsu, Ltd.(b)............. 210,915
62,000 Kubota Corp.(b).............. 393,752
73,000 Mitsubishi Heavy Industries,
Ltd.(b).................... 579,685
31,000 Mitsui Engineer &
Shipbuild(b)............... 85,245
2,000 Mori Seiki Co., Ltd.(b)...... 44,895
------------
1,508,665
------------
Materials (0.3%):
26,000 Asahi Glass Co., Ltd.(b)..... 299,116
22,000 Nippon Sheet Glass(b)........ 104,943
------------
404,059
------------
Merchandising (1.6%):
14,000 Daiei, Inc.(b)............... 166,300
8,000 Ito-Yokado Co., Ltd.(b)...... 455,689
9,000 Jusco(b)..................... 231,492
10,000 Marui Co., Ltd.(b)........... 195,482
17,000 Mitsukoshi, Ltd.(b).......... 152,009
8,000 Seven-Eleven Japan(b)........ 552,963
9,000 Takashimaya Co.(b)........... 139,737
------------
1,893,672
------------
Metals--Non Ferrous (0.4%):
27,000 Furukawa Electric(b)......... 132,834
23,000 Nippon Light Metal Co.(b).... 140,261
19,000 NTN Corp.(b)................. 127,419
11,000 JP Sumitomo Metal Mining
Co.(b)..................... 103,915
------------
504,429
------------
Metals--Steel (1.3%):
24,000 Daido Steel Co., Ltd.(b)..... 119,422
78,000 Kawasaki Steel(b)............ 276,500
</TABLE>
Continued
-67-
<PAGE> 69
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Metals--Steel, Continued:
81,000 Kobe Steel, Ltd.(b).......... $ 253,800
67,000 NKK Corp.(b)................. 530,066
154,000 Nippon Steel Co.(b).......... 191,133
59,000 Sumitomo Metal
Industries(b).............. 192,592
------------
1,563,513
------------
Oil & Gas Exploration, Production, & Services (0.1%):
28,000 Cosmo Oil Co., Ltd.(b)....... 143,254
------------
Pharmaceuticals (0.1%):
4,000 Daiichi Pharmaceutical(b).... 57,990
2,000 Eisai Co., Ltd.(b)........... 36,103
------------
94,093
------------
Publishing & Broadcasting (0.0%):
2,000 Tokyo Broadcasting(b)........ 32,923
------------
Real Estate (0.4%):
23,000 Mitsubishi Estate Co.,
Ltd.(b).................... 279,661
20,000 Mitsui Fudosan(b)............ 237,572
------------
517,233
------------
Recreation (0.9%):
17,000 Canon, Inc.(b)............... 321,190
41,000 Citizen Watch Co., Ltd.(b)... 337,464
10,000 Fuji Photo Film(b)........... 282,467
13,000 Olympus Optical Co.,
Ltd.(b).................... 131,319
------------
1,072,440
------------
Retail (0.3%):
2,000 Aoyama Trading Co.,
Ltd.(b).................... 58,925
2,000 Credit Saison(b)............. 46,953
3,000 Hankyu Department
Stores(b).................. 42,651
6,000 Istetan(b)................... 79,128
6,000 Nichii(b).................... 80,251
4,000 Seiyu, Ltd.(b)............... 50,881
------------
358,789
------------
Retail--Specialty Stores (0.1%):
3,000 Hoya Corp.(b)................ 98,209
------------
Rubber & Rubber Products (0.1%):
15,000 Okamoto Industries,
Inc.(b).................... 99,752
------------
Textiles (0.2%):
21,000 Teijin, Ltd.(b).............. 110,387
31,000 Toyobo, Ltd.(b).............. 113,950
------------
224,337
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Transportation--Airlines (0.2%):
39,000 Japan Airlines(b)............ $ 260,450
------------
Transportation--Rail (1.3%):
27,000 Hankyu Corp.(b).............. 151,270
33,000 Kinki Nippon Railway(b)...... 250,012
18,000 Nagoya Railroad Co.,
Ltd.(b).................... 91,250
5,000 Nankai Electric Railway(b)... 33,672
24,000 Nippon Express Co.,
Ltd.(b).................... 224,477
27,000 Odakyu Electric Railway(b)... 181,574
33,000 Tobu Railway Co., Ltd.(b).... 199,083
33,000 Tokyu Corp.(b)............... 223,776
16,000 Yamato Transport Co.,
Ltd.(b).................... 184,074
------------
1,539,188
------------
Transportation--Shipping (0.2%):
24,000 Kawasaki Kisen(b)............ 84,179
18,000 Mitsui O.S.K. Lines,
Ltd.(b).................... 59,262
22,000 Nippon Yusen Kabushiki
Kaish(b)................... 123,257
------------
266,698
------------
Utilities--Electric & Gas (1.6%):
20,900 Kansai Electric Power(b)..... 490,661
55,000 Osaka Gas Co.(b)............. 196,511
9,661 Tohoku Electric Power(b)..... 231,325
29,700 Tokyo Electric Power(b)...... 755,591
55,000 Tokoyo Gas Co., Ltd.(b)...... 194,968
------------
1,869,056
------------
Wholesale (1.4%):
46,000 Itochu Corp.(b).............. 307,197
38,000 Marubeni Corp(b)............. 200,814
37,000 Mitsubishi Corp.(b).......... 456,811
33,000 Mitsui & Co(b)............... 286,742
17,000 Nagase & Co. Ltd.(b)......... 156,301
29,000 Sumitomo Corp.(b)............ 301,080
------------
1,708,945
------------
Total Japan 47,003,265
------------
</TABLE>
Continued
-68-
<PAGE> 70
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
MALAYSIA (2.2%):
Agriculture & Livestock (0.1%):
67,000 Highlands & Lowlands(b)...... $ 100,491
------------
Automobiles (0.1%):
9,000 Edaran Otomobile
Nasional(b)................ 69,251
25,000 Perusahaan Otomobil
Nasional(b)................ 93,742
------------
162,993
------------
Banking (0.3%):
14,000 DCB Holdings Berhad(b)....... 41,286
35,000 Malayan Banking Berhad(b).... 313,058
------------
354,344
------------
Building Materials (0.1%):
9,000 Hume Industries(b)........... 42,535
19,000 Pan Malaysia Cement Works.... 22,115
------------
64,650
------------
Construction & Housing (0.0%):
48,000 Amsteel Corp.(b)............. 37,497
------------
Engineering (0.1%):
13,000 YTL Corp. ................... 81,751
------------
Financial Services (0.2%):
5,000 AMMB Holdings Berhad(b)...... 56,636
17,000 Public Bank(b)............... 41,168
30,000 Technology Resources
Industries(b).............. 91,984
------------
189,788
------------
Forest Products (0.0%):
24,000 Land & General Holdings(b)... 49,683
------------
Leisure (0.2%):
41,000 Magnum Corp. Berhad(b)....... 83,274
25,000 Resorts World Berhad(b)...... 132,801
------------
216,075
------------
Machine Tools (0.1%):
18,000 United Engineers(b).......... 116,709
------------
Materials (0.0%):
23,000 Golden Hope Plantations(b)... 36,114
------------
Multi-Industry (0.1%):
28,000 Multi-Purpose Holdings
Berhad(b).................. 43,309
49,000 Sime Darby Berhad(b)......... 131,102
------------
174,411
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Malaysia, Continued:
Real Estate (0.1%):
42,000 Hong Leong Properties
Berhad(b).................. $ 50,855
23,000 Malaysian Resources Corp.
Berhad(b).................. 53,452
------------
104,307
------------
Telecommunications (0.3%):
43,000 Telekom Malaysia(b).......... 357,742
------------
Tobacco & Tobacco Products (0.1%):
9,000 Rothmans of Pall Mall
Berhad(b).................. 74,173
------------
Transportation--Airlines (0.1%):
25,000 Malaysian Airline
System(b).................. 79,583
------------
Transportation--Shipping (0.1%):
36,000 Malaysian International
Shipping(b)................ 111,787
------------
Utilities--Electric & Gas (0.3%):
90,000 Tenaga Nasional Berhad(b).... 333,955
------------
Total Malaysia 2,646,053
------------
NEW ZEALAND (0.4%)
Beverages (0.0%):
13,326 Lion Nathan, Ltd.(b)......... 31,283
------------
Forest Products (0.2%):
49,289 Carter Holt Harvey,
Ltd.(b).................... 105,096
18,400 Fletcher Challange, Ltd.,
Ordinary Division(b)....... 42,080
30,572 Fletcher Challenge, Ltd.,
Forestry Division(b)....... 42,772
------------
189,948
------------
Multi-Industry (0.0%):
32,970 Brierley Investment,
Ltd.(b).................... 28,608
------------
Publishing & Broadcasting (0.0%):
4,598 Wilson & Horton(b)........... 27,835
------------
</TABLE>
Continued
-69-
<PAGE> 71
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
New Zealand, Continued:
Telecommunications (0.1%):
39,053 Telecom Corp. of New Zealand,
Ltd.(b).................... $ 169,430
------------
Total New Zealand 447,104
------------
NORWAY (0.4%):
Chemicals (0.0%):
1,200 Dyno Industrier(b)........... 24,873
------------
Energy (0.2%):
5,250 Norsk Hydro(b)............... 216,028
------------
Forest Products (0.0%):
700 Norske Skogin Industries, A
Shares(b).................. 19,130
------------
Health Care (0.1%):
1,050 Hafslund Nycomed, A
Shares(b).................. 29,664
1,600 Hafslund Nycomed, B
Shares(b).................. 44,096
------------
73,760
------------
Insurance--Property, Casualty, Health & Other (0.0%):
7,398 Unistorabrand Bundna,
A Shares(b)................ 40,778
------------
Machine Tools (0.0%):
550 Kvaerner Industries, A
Shares(b).................. 18,282
------------
Multi-Industry (0.0%):
600 Orkla(b)..................... 28,098
------------
Oil & Gas Exploration, Production, & Services (0.0%):
1,700 Petroleum Geo Services(b).... 36,542
------------
Transportation--Shipping (0.0%):
2,400 Bergesen, A Shares(b)........ 48,273
------------
Total Norway 505,764
------------
SINGAPORE (1.3%):
Automobiles (0.0%):
3,000 Cycle & Carriage(b).......... 34,242
------------
Banking (0.2%):
10,000 Development Bank
Singapore(b)............... 141,617
12,000 United Overseas Bank,
Ltd.(b).................... 129,357
------------
270,974
Beverages (0.1%):
5,000 Fraser & Neave, Ltd.(b)...... 69,751
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Singapore, Continued:
Financial Services (0.2%):
18,000 OCBC(b)...................... $ 247,301
------------
Household Goods (0.1%):
29,000 Amcol Holdings(b)............ 86,224
------------
Leisure (0.0%):
12,000 Shangri La Hotel, Ltd.(b).... 42,105
------------
Machine Tools (0.1%):
12,000 Keppel Corp.(b).............. 112,448
------------
Metals--Steel (0.0%):
12,000 Natsteel, Ltd.(b)............ 24,519
------------
Multi-Industry (0.1%):
8,000 Straits Steamship(b)......... 28,464
32,000 United Industrial Corp.(b)... 34,721
------------
63,185
Publishing & Broadcasting (0.1%):
7,000 Singapore Press
Holdings(b)................ 136,121
------------
Real Estate (0.1%):
11,000 City Developments(b)......... 89,127
20,000 DBS Land(b).................. 78,911
------------
168,038
Transportation--Airlines (0.2%):
20,000 Singapore Airlines(b)........ 209,958
------------
Transportation--Shipping (0.0%):
21,000 Neptune Orient Lines(b)...... 24,560
------------
Total Singapore 1,489,426
SPAIN (1.7%):
Banking (0.5%):
3,026 Bancaria De Espa(b).......... 126,968
5,742 Banco Bilbao Vizcaya(b)...... 210,469
3,925 Banco Central
Hispanomer(b).............. 81,406
3,241 Banco Santander.............. 155,897
------------
574,740
Beverages (0.1%):
1,563 Tabacalera(b)................ 60,782
------------
Business & Public Services (0.0%):
5,445 Autopisatas
Concesionaria(b)........... 56,900
------------
</TABLE>
Continued
-70-
<PAGE> 72
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Spain, Continued:
Construction & Housing (0.0%):
303 Fomento De Construction y
Contra(b).................. $ 25,137
------------
Energy (0.2%):
5,669 Repsol(b).................... 197,167
------------
Insurance--Property, Casualty, Health & Other (0.0%):
439 Corporacion Mapfre Cia
International(b)........... 24,373
439 Corporacion Mapfre
Rights(b).................. 0
------------
24,373
------------
Manufacturing (0.0%):
206 Zardoya Otis(b).............. 21,510
------------
Metal--Steel (0.0%):
294 Esp Acerinox Sa Esp 1000
Regd(b).................... 29,879
------------
Multi-Industry (0.0%):
579 Corporacion Financier
Alba(b).................... 36,765
------------
Real Estate (0.1%):
1,062 Inmobiliaria Metropolitana
Vasco(b)................... 34,310
1,915 Vallehermoso(b).............. 36,357
------------
70,667
------------
Telecommunications (0.3%):
21,567 Telefonica De Espana(b)...... 316,555
------------
Utilities--Electric & Gas (0.5%):
4,797 Empresa NAC De
Electricid(b).............. 264,034
811 Gas Natural(b)............... 117,419
20,903 Iberdrola(b)................. 195,924
9,913 Union Electrica(b)........... 54,325
------------
631,702
------------
Total Spain 2,046,177
------------
SWEDEN (2.0%):
Automotive Parts (0.0%):
600 Autoliv AB, B Shares(b)...... 29,018
------------
Automobiles (0.1%):
1,733 Volvo AB, A Shares(b)........ 32,677
7,321 Volvo AB, B Shares(b)........ 136,988
------------
169,665
------------
Banking (0.3%):
2,666 Skandia Group Foersaekrings
AB(b)...................... 67,345
14,559 Skandinaviska Enskildea
Banken(b).................. 108,970
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Sweden, Continued:
Banking, Continued:
3,862 Stadshypotek(b).............. $ 73,098
6,651 Svenska Handelsbanken(b)..... 125,409
------------
374,822
------------
Building Materials (0.0%):
1,200 Euroc Industriab AB(b)....... 31,090
------------
Chemicals (0.1%):
5,458 AGA AB, A Shares(b).......... 76,597
2,150 AGA AB, B Shares(b).......... 30,327
------------
106,924
------------
Construction & Housing (0.1%):
3,259 Skanska AB, B Shares(b)...... 100,854
------------
Electrical & Electronic (0.5%):
1,385 ASEA AB, A Shares(b)......... 131,572
550 ASEA AB, B Shares(b)......... 52,170
19,352 Ericsson LM, Class B(b)...... 388,571
------------
572,313
------------
Forest Products (0.1%):
3,916 Stora Kopparbergs
Bergslags(b)............... 41,992
3,010 Svenska Cellulosa(b)......... 44,841
------------
86,833
------------
Health Care (0.4%):
9,769 Astra AB, A Shares(b)........ 396,524
2,900 Astra AB, B Shares(b)........ 116,250
------------
512,774
------------
Household Goods (0.1%):
1,491 Electrolux AB, Series B(b)... 62,880
------------
Industrial Goods & Services (0.1%):
3,000 S.K.F. AB, B Shares(b)....... 55,272
2,000 Trelleborg AB, B Shares(b)... 21,590
------------
76,862
------------
Insurance--Property, Casualty, Health & Other (0.1%):
3,400 Skanddia Forsakrings(b)...... 85,887
------------
Machine Tools (0.1%):
4,120 Atlas Copco AB, A
Shares(b).................. 60,784
------------
</TABLE>
Continued
-71-
<PAGE> 73
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Sweden, Continued:
Merchandising (0.1%):
1,237 Hennes & Mauritz AB, B
Shares(b).................. $ 71,399
------------
Total Sweden 2,342,105
------------
SWITZERLAND (5.5%):
Banking (1.1%):
3,350 CS Holding(b)................ 314,203
570 Schweiz
Bankgesellschaft(b)........ 592,550
550 Schweizerische
Bankverein(b).............. 99,081
450 Schweizerische
Bankverein--B(b)........... 162,504
418 Union Bank of
Switzerland(b)............. 93,608
------------
1,261,946
------------
Building Materials (0.1%):
241 Holderbank Finan Glaris(b)... 172,068
------------
Business & Public Services (0.1%):
150 Adia Sa Swiss
Bearershareschf(b)......... 25,782
34 Societe Generale De
Surveillance(b)............ 64,762
116 Societe Generale De
Surveillance-- R(b)........ 42,657
------------
133,201
------------
Construction & Housing (0.0%):
25 Schindler Holding(b)......... 26,753
25 Schindler Holding--R(b)...... 26,857
------------
53,610
------------
Electrical & Electronic (0.2%):
170 ABB Brown Boveri(b).......... 195,971
------------
Household Goods (0.7%):
790 Nestle(b).................... 832,351
------------
Insurance--Property, Casualty, Health & Other (0.5%):
300 Schweiz
Rueckversicherungs(b)...... 308,150
900 Zurich Versicherungs(b)...... 244,685
------------
552,835
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Switzerland, Continued:
Metals--Non Ferrous (0.1%):
100 Alusuisse Lonza Holding,
Ltd.(b).................... $ 77,843
------------
Pharmaceuticals (2.6%):
140 Ciba-Geigy AG--B(b).......... 116,385
690 Ciba-Geigy AG--R(b).......... 575,320
38 Roche Holding
AG--Bearer(b).............. 506,352
154 Roche Holding
AG--Genussshein(b)......... 1,127,519
800 Sandoz, Ltd. AG(b)........... 694,804
55 Sandoz, Ltd.(b).............. 48,177
------------
3,068,557
------------
Recreation (0.0%):
46 Swiss Corp. For
Micoelectronics(b)......... 25,204
200 Swiss Corp. For
Microeletronics(b)......... 26,419
------------
51,623
Retail (0.0%):
280 Merkur(b).................... 59,234
------------
Transportation--Airlines (0.0%):
50 Swissair(b).................. 41,236
------------
Total Switzerland 6,500,475
------------
Total Common Stocks 116,474,513
------------
SWEEP ACCOUNTS (2.0%):
2,342,069 Bank of New York............. 2,342,069
------------
Total Sweep Accounts 2,342,069
------------
Total (Cost)--$114,648,420(a) $118,816,582
============
<FN>
- ---------
Percentages are based on net assets of $119,039,738.
(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 $12,000. Cost for federal income tax purposes differs from
value by net unrealized appreciation of securities as follows:
Unrealized appreciation...... $4,366,190
Unrealized depreciation...... (210,028)
----------
Net unrealized
appreciation............... $4,156,162
=========
(b) Non-income producing security.
See notes to financial statements.
</TABLE>
-72-
<PAGE> 74
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1996
(UNAUDITED)
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. 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 loads
while certain redemptions of Class C shares may be subject to 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.
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
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses for the
period. Actual results could differ from those estimates.
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 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
Continued
-73-
<PAGE> 75
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
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 variable net
asset funds, are reflected as either unrealized appreciation or
depreciation.
SECURITIES TRANSACTIONS AND RELATED INCOME:
Securities transactions are accounted for on the date the security is
purchased or sold (trade date). Interest income is recognized on the accrual
basis and includes, where applicable, the pro rata amortization of premium or
discount. Dividend income is recorded on the ex-dividend date. Gains or
losses realized on sales of securities are determined by comparing the
identified cost of the security lot sold with the net sales proceeds.
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.
Reported net realized foreign exchange gains or losses arise from sales or
maturities of portfolio securities, sales and maturities of short-term
securities, purchases and sales of foreign currencies, currency gains or
losses realized between the trade and settlement dates of securities
transactions, and the difference between the amount of interest and dividend
income recorded on the Funds' 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, including
investments in securities resulting from changes in exchange rates.
FORWARD CURRENCY CONTRACTS:
The International Opportunities Fund may enter into forward currency
exchanged 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
-74-
<PAGE> 76
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
REPURCHASE AGREEMENTS:
The Funds may acquire repurchase agreements from member banks of the Federal
Reserve System and from 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 maintain
the value of collateral held 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.
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income are declared daily and paid monthly for
the money market funds. Dividends from net investment income are declared and
paid monthly for the Intermediate Bond Fund and the Diversified Bond Fund.
Dividends from net investment income are declared and paid quarterly for the
Small Companies Value Fund, the Large Companies Value Fund, the Optimized
Stock Fund, and the International Opportunities Fund. Distributable net
realized capital gains, if any, are declared and distributed annually for all
funds.
Dividends 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 for 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 to make 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 or excise tax is
necessary.
ORGANIZATION EXPENSES:
All costs incurred by the Funds in connection with the organization of the
Trust and the initial public offering of shares of the Funds, principally
professional fees and printing, have been deferred. Upon commencement of
investment operations of each Fund, the deferred organization expenses are
being amortized on a straight-line basis over a period of two years. In the
event that any of the initial shares of the Funds are redeemed during the
amortization period by any holder thereof, the redemption proceeds will be
reduced by any unamortized organization expenses in the same proportion as
the number of said shares being redeemed bears to the number of initial
shares that are outstanding at the time of the redemption.
Continued
-75-
<PAGE> 77
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
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. 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
six months ended January 31, 1996 are as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C>
Intermediate Bond Fund.......................................... $61,470,221 $51,710,445
Diversified Bond Fund........................................... $87,922,687 $46,394,221
Small Companies Value Fund...................................... $56,910,838 $37,102,797
Large Companies Value Fund...................................... $22,787,478 $20,947,929
Optimized Stock Fund............................................ $81,819,885 $46,498,220
International Opportunities Fund................................ $61,898,376 $ 593,154
</TABLE>
Continued
-76-
<PAGE> 78
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
4. CAPITAL SHARE TRANSACTIONS:
Transactions in capital shares for the Trust were as follows:
<TABLE>
<CAPTION>
U.S. TREASURY TAX-FREE
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
----------------------------------- ----------------------------------- -----------------------------------
SIX MONTHS AUGUST 1, 1994 SIX MONTHS JANUARY 11, 1995 SIX MONTHS JANUARY 9, 1995
ENDED TO ENDED TO ENDED TO
JANUARY 31, 1996 JULY 31, 1995(B) JANUARY 31, 1996 JULY 31, 1995(A) JANUARY 31, 1996 JULY 31, 1995(A)
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
CAPITAL
TRANSACTIONS:
CLASS A
SHARES:
Proceeds
from
shares
sold...... $ 233,100,225 $ 544,555,934 $ 90,127,283 $150,979,520 $ 34,406,049 $ 68,940,405
Dividends
reinvested... 5,499,996 6,145,653 2,044,784 1,514,316 518,383 515,705
Cost of
shares
redeemed... (239,012,209) (334,023,040) (86,633,330) (79,070,871) (33,573,572) (35,887,283)
------------- ------------- ------------ ------------ ------------ ------------
Net increase
(decrease)--
Class A
Shares.... $ (411,988) $ 216,678,547 $ 5,538,737 $ 73,422,965 $ 1,350,860 $ 33,568,827
============= ============= ============ ============ ============ ============
CLASS Y
SHARES:
Proceeds
from
shares
sold...... $ 171,152,091 $ 206,644,035 $ -- $ 2,187,762 $ 300,420 $ 13,290
Dividends
reinvested... 379 655 367 9,943 292 216
Cost of
shares
redeemed... (155,200,597) (140,160,495) -- (2,184,075) (285,293) --
------------- ------------- ------------ ------------ ------------ ------------
Net
increase--Class
Y Shares.. $ 15,951,873 $ 66,484,195 $ 367 $ 13,630 $ 15,419 $ 13,506
============= ============= ============ ============ ============ ============
CLASS Q
SHARES:
Proceeds
from
shares
sold...... $ 291,271,937 $ 248,319,930 $ 76,184,890 $ 20,761,722 $ 11,372,428 $ 4,741,542
Dividends
reinvested... 1,847,108 870,929 574,368 96,900 25,727 12,857
Cost of
shares
redeemed... (261,799,469) (193,844,941) (62,022,033) (11,199,528) (10,366,352) (3,504,414)
------------- ------------- ------------ ------------ ------------ ------------
Net
increase--Class
Q Shares.. $ 31,319,576 $ 55,345,918 $ 14,737,225 $ 9,659,094 $ 1,031,803 $ 1,249,985
============= ============= ============ ============ ============ ============
SHARES
TRANSACTIONS:
CLASS A
SHARES:
Proceeds
from
shares
sold...... 233,100,225 544,555,934 90,127,283 150,979,520 34,406,049 68,940,405
Dividends
reinvested... 5,499,996 6,145,653 2,044,784 1,514,316 518,383 515,705
Cost of
shares
redeemed... (239,012,209) (334,023,040) (86,633,330) (79,070,871) (33,573,572) (35,887,283)
------------- ------------- ------------ ------------ ------------ ------------
Net increase
(decrease)--
Class A
Shares.... (411,988) 216,678,547 5,538,737 73,422,965 1,350,860 33,568,827
============= ============= ============ ============ ============ ============
CLASS Y
SHARES:
Proceeds
from
shares
sold...... 171,152,091 206,644,035 -- 2,187,762 300,420 13,290
Dividends
reinvested... 379 655 367 9,943 292 216
Cost of
shares
redeemed... (155,200,597) (140,160,495) -- (2,184,075) (285,293) --
------------- ------------- ------------ ------------ ------------ ------------
Net
increase--Class
Y Shares.. 15,951,873 66,484,195 367 13,630 15,419 13,506
============= ============= ============ ============ ============ ============
CLASS Q
SHARES:
Proceeds
from
shares
sold...... 291,271,937 248,319,930 76,184,890 20,761,722 11,372,428 4,741,542
Dividends
reinvested... 1,847,108 870,929 574,368 96,900 25,727 12,857
Cost of
shares
redeemed... (261,799,469) (193,844,941) (62,022,033) (11,199,528) (10,366,352) (3,504,414)
------------- ------------- ------------ ------------ ------------ ------------
Net
increase--Class
Q Shares.. 31,319,576 55,345,918 14,737,225 9,659,094 1,031,803 1,249,985
============= ============= ============ ============ ============ ============
<FN>
- ---------
(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.
</TABLE>
Continued
-77-
<PAGE> 79
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
4. CAPITAL SHARE TRANSACTIONS, CONTINUED
<TABLE>
<CAPTION>
INTERMEDIATE BOND FUND DIVERSIFIED BOND FUND SMALL COMPANIES VALUE FUND
----------------------------------- ----------------------------------- -----------------------------------
SIX MONTHS AUGUST 1, 1994 SIX MONTHS MAY 2, 1995 SIX MONTHS AUGUST 1, 1994
ENDED TO ENDED TO ENDED TO
JANUARY 31, 1996 JULY 31, 1995(A) JANUARY 31, 1996 JULY 31, 1995(A) JANUARY 31, 1996 JULY 31, 1995(A)
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
CAPITAL
TRANSACTIONS:
CLASS A
SHARES:
Proceeds
from
shares
sold...... $ 159,802 $ 374,102 $ 90,813 $ 10 $ 3,407,148 $ 1,089,178
Dividends
reinvested... 12,956 12,070 2,428 -- 270,475 5,250
Cost of
shares
redeemed... (23,426) (11,617) (2,211) -- (310,833) (44,459)
------------ ------------- ----------- ----------- ------------ -------------
Net
increase--Class
A Shares.. $ 149,332 $ 374,555 $ 91,030 $ 10 $ 3,366,790 $ 1,049,969
============ ============= =========== =========== ============ =============
CLASS Y
SHARES:
Proceeds
from
shares
sold...... $ 28,984,331 $ 286,156,286 $ 43,854,782 $ 95,041,010 $ 63,322,382 $198,104,448
Dividends
reinvested... 3,974,420 12,454,777 4,933,686 1,211,429 18,494,860 2,658,213
Cost of
shares
redeemed... (27,432,027) (159,374,920) (3,891,372) -- (34,127,815) (42,345,409)
------------ ------------- ----------- ----------- ------------ -------------
Net
increase--Class
Y Shares.. $ 5,526,724 $ 139,236,143 $ 44,897,096 $ 96,252,439 $ 47,689,427 $158,417,252
============ ============= =========== =========== ============ =============
CLASS C
SHARES:
Proceeds
from
shares
sold...... $ 8,002 $ 134,398 $ -- $ 10 $ 469,894 $ 261,667
Dividends
reinvested... 3,377 4,882 -- -- 52,578 1,314
Cost of
shares
redeemed... -- (10,000) -- -- (73,040) (5,061)
------------ ------------- ----------- ----------- ------------ -------------
Net
increase--Class
C Shares.. $ 11,379 $ 129,280 $ -- $ 10 $ 449,432 $ 257,920
============ ============= =========== =========== ============ =============
SHARES
TRANSACTIONS:
CLASS A
SHARES:
Proceeds
from
shares
sold...... 15,717 37,785 8,757 1 250,509 98,380
Dividends
reinvested... 1,274 1,226 235 -- 21,084 494
Cost of
shares
redeemed... (2,302) (1,161) (213) -- (22,594) (3,890)
------------ ------------- ----------- ----------- ------------ -------------
Net
increase--Class
A Shares.. 14,689 37,850 8,779 1 248,999 94,984
============ ============= =========== =========== ============ =============
CLASS Y
SHARES:
Proceeds
from
shares
sold...... 2,818,666 28,671,996 4,184,492 9,499,714 4,677,601 19,456,890
Dividends
reinvested... 387,727 1,260,202 470,475 116,790 1,443,300 254,713
Cost of
shares
redeemed... (2,677,321) (16,008,169) (372,533) -- (2,497,011) (3,896,770)
------------ ------------- ----------- ----------- ------------ -------------
Net
increase--Class
Y Shares.. 529,072 13,924,029 4,282,434 9,616,504 3,623,890 15,814,833
============ ============= =========== =========== ============ =============
CLASS C
SHARES:
Proceeds
from
shares
sold...... 798 13,861 -- 1 34,719 24,013
Dividends
reinvested... 336 500 -- -- 4,153 128
Cost of
shares
redeemed... -- (1,004) -- -- (5,546) (403)
------------ ------------- ----------- ----------- ------------ -------------
Net
increase--Class
C Shares.. 1,134 13,357 -- 1 33,326 23,738
============ ============= =========== =========== ============ =============
<FN>
- ---------
(a) Period from commencement of operations.
</TABLE>
Continued
-78-
<PAGE> 80
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
4. CAPITAL SHARE TRANSACTIONS, CONTINUED
<TABLE>
<CAPTION>
LARGE COMPANIES INTERNATIONAL
VALUE FUND OPTIMIZED STOCK FUND OPPORTUNITIES FUND
----------------------------------- ----------------------------------- -----------------------------------
SIX MONTHS AUGUST 1, 1994 SIX MONTHS MAY 2, 1995 SIX MONTHS JULY 3, 1995
ENDED TO ENDED TO ENDED TO
JANUARY 31, 1996 JULY 31, 1995(A) JANUARY 31, 1996 JULY 31, 1995(A) JANUARY 31, 1996 JULY 31, 1995(A)
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
CAPITAL
TRANSACTIONS:
CLASS A
SHARES:
Proceeds
from
shares
sold...... $ 965,723 $ 953,774 $ 265,450 $ 33,973 $ 2,519,271 $ 19,864
Dividends
reinvested... 144,287 6,738 5,942 -- 2,478 --
Cost of
shares
redeemed... (34,081) (22,511) (8,093) -- (586,573) --
------------ ------------- ----------- ------------ ----------- -----------
Net
increase--Class
A Shares.. $ 1,075,929 $ 938,001 $ 263,299 $ 33,973 $ 1,935,176 $ 19,864
============ ============= =========== ============ =========== ===========
CLASS Y
SHARES:
Proceeds
from
shares
sold...... $ 16,449,897 $138,714,515 $ 44,034,273 $135,931,999 $ 59,605,836 $ 57,478,223
Dividends
reinvested... 8,713,087 2,128,654 4,522,479 303,570 198,556 --
Cost of
shares
redeemed... (17,390,146) (62,354,448) (8,861,873) (207,881) (4,230,909) (12,300)
------------ ------------- ----------- ------------ ----------- -----------
Net
increase--Class
Y Shares.. $ 7,772,838 $ 78,488,721 $ 39,694,879 $136,027,688 $ 55,573,483 $ 57,465,923
============ ============= =========== ============ =========== ===========
CLASS C
SHARES:
Proceeds
from
shares
sold...... $ 243,267 $ 232,652 $ 31,226 $ 18,873 $ 4,651 $ 10
Dividends
reinvested... 30,151 2,124 1,180 19 -- --
Cost of
shares
redeemed... (20,939) (3,443) (1,556) -- -- --
------------ ------------- ----------- ------------ ----------- -----------
Net
increase--Class
C Shares.. $ 252,479 $ 231,333 $ 30,850 $ 18,892 $ 4,651 $ 10
============ ============= =========== ============ =========== ===========
SHARES
TRANSACTIONS:
CLASS A
SHARES:
Proceeds
from
shares
sold...... 81,046 88,093 23,185 3,194 245,796 1,916
Dividends
reinvested... 12,832 652 512 -- 248 --
Cost of
shares
redeemed... (2,944) (2,173) (718) -- (58,109) --
------------ ------------- ----------- ------------ ----------- -----------
Net
increase--Class
A Shares.. 90,934 86,572 22,979 3,194 187,935 1,916
============ ============= =========== ============ =========== ===========
CLASS Y
SHARES:
Proceeds
from
shares
sold...... 1,373,122 13,645,791 3,790,306 13,578,302 5,698,845 5,733,331
Dividends
reinvested... 771,380 207,173 393,322 29,588 19,815 --
Cost of
shares
redeemed... (1,438,868) (5,832,431) (763,644) (19,190) (412,243) (1,188)
------------ ------------- ----------- ------------ ----------- -----------
Net
increase--Class
Y Shares.. 705,634 8,020,533 3,419,984 13,588,700 5,306,417 5,732,143
============ ============= =========== ============ =========== ===========
CLASS C
SHARES:
Proceeds
from
shares
sold...... 20,967 22,592 2,750 1,838 448 1
Dividends
reinvested... 2,722 207 102 2 -- --
Cost of
shares
redeemed... (1,742) (289) (136) -- -- --
------------ ------------- ----------- ------------ ----------- -----------
Net
increase-Class
C Shares... 21,947 22,510 2,716 1,840 448 1
============ ============= =========== ============ =========== ===========
<FN>
- ---------
(a) Period from commencement of operations.
</TABLE>
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 based on a percentage of the average net assets of
each of the Funds.
Continued
-79-
<PAGE> 81
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS"),
an Ohio limited partnership, and BISYS Fund Services Ohio, Inc. ("BISYS
Ohio") are subsidiaries of The BISYS Group, Inc.
BISYS serves the Funds as Administrator. Under the terms of the
administration agreement, BISYS' fees are computed daily as a percentage of
the average net assets of the Funds. 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 six months ended January 31, 1996,
BISYS received $116,450 of commissions earned on sales of shares of the
Trust's variable net asset value funds of which $113,746 reallowed to dealers
of the Funds' shares including $20 to affiliates of the Fund. BISYS Fund
Services Ohio, Inc. serves the Funds as transfer agent and mutual fund
accountant.
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. 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.
U. S. Bank (the "Custodian") provides custody services to the Funds, except
with respect to the International Opportunities Fund. 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
-80-
<PAGE> 82
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
Information regarding these transactions is as follows for the six months ended
January 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:
Annual fee before voluntary fee reductions (percentage of average
net assets)..................................................... 0.35% 0.35% 0.35%
Voluntary fee reductions.......................................... $ 187,509 $ 196,021 $64,225
ADMINISTRATION FEES:
Annual fee (percentage of average net assets)..................... 0.13% 0.13% 0.13%
DISTRIBUTION & SERVICE FEES:
CLASS A
Annual fee before voluntary fee reductions (percentage of average
net assets)..................................................... 0.40% 0.40% 0.40%
DISTRIBUTION & SERVICE FEES:
CLASS Q
Annual fee (percentage of average net assets)..................... 0.25% 0.25% 0.25%
Voluntary fee reductions.......................................... $ 94,074 $ 6,661
CUSTODIAN FEES:
Annual fee (percentage of average net assets)..................... 0.03% 0.03% 0.03%
ACCOUNTING AND TRANSFER AGENT FEES:................................. $ 88,071 $ 52,937 $56,171
</TABLE>
Continued
-81-
<PAGE> 83
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SMALL
INTERMEDIATE DIVERSIFIED COMPANIES
BOND FUND BOND FUND VALUE FUND
------------ --------- ----------
<S> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Annual fee before voluntary fee reductions (percentage of average net
assets)............................................................... 0.60% 0.60 % 0.85%
Voluntary fee reductions................................................ $109,745 $177,106
ADMINISTRATION FEES:
Annual fee (percentage of average net assets)........................... 0.13% 0.13 % 0.13%
DISTRIBUTION & SERVICE FEES:
CLASS A
Annual fee (percentage of average net assets)........................... 0.25% 0.25 % 0.25%
DISTRIBUTION FEES:
CLASS C
Annual fee (percentage of average net assets)........................... 0.75% 0.75 % 0.75%
SERVICE FEES:
CLASS C
Annual fee (percentage of average net assets)........................... 0.25% 0.25 % 0.25%
CUSTODIAN FEES:
Annual fee (percentage of average net assets)........................... 0.03% 0.03 % 0.03%
ACCOUNTING AND TRANSFER AGENT FEES:....................................... $ 63,532 $ 54,707 $ 77,961
</TABLE>
Continued
-82-
<PAGE> 84
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
LARGE INTERNATIONAL
COMPANIES OPTIMIZED OPPORTUNITIES
VALUE FUND STOCK FUND FUND
---------- ---------- -------------
<S> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Annual fee before voluntary fee reductions (percentage of average net
assets)............................................................... 0.75% 0.50% 0.60%
Voluntary fee reductions................................................ $ 75,315 $167,197 $ 110,663
ADMINISTRATION FEES:
Annual fee (percentage of average net assets)........................... 0.13% 0.13% 0.13%
DISTRIBUTION & SERVICE FEES:
CLASS A
Annual fee (percentage of average net assets)........................... 0.25% 0.25% 0.25%
DISTRIBUTION FEES:
CLASS C
Annual fee (percentage of average net assets)........................... 0.75% 0.75% 0.75%
SERVICE FEES:
CLASS C
Annual fee (percentage of average net assets)........................... 0.25% 0.25% 0.25%
CUSTODIAN FEES:
Annual fee (percentage of average net assets)........................... 0.03% 0.03% (a)
ACCOUNTING AND TRANSFER AGENT FEES:....................................... $ 55,597 $ 69,686 $ 86,781
<FN>
- ---------
(a) The custodian for the International Opportunities Fund is not a related party.
</TABLE>
6. CONCENTRATION OF CREDIT RISK:
The International Opportunities Fund has a relatively large concentration of
securities invested in companies domiciled in Japan. The Fund may be more
susceptible to the political, social and economic events adversely affecting
the Japanese companies than funds not so concentrated.
-83-
<PAGE> 85
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MONEY MARKET FUND
-------------------------------------------------------------------------------
FOR THE
SIX MONTHS
ENDED JANUARY 10,
JANUARY 31, 1996 1995 TO
------------------------------------ AUGUST 1, 1994 TO JULY 31,
JULY 31, 1995(A) 1995(A)
(UNAUDITED) --------------------- -----------
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................ 0.025 0.027 0.027 0.049 0.053 0.031
-------- ------- ------- -------- ------- -----------
Distributions
Net investment income................ (0.025) (0.027) (0.027) (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........................... 2.49%(b) 2.70%(b) 2.70%(b) 4.97% 5.40% 3.13%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)...... $216,267 $82,436 $86,665 $216,679 $66,484 $55,346
Ratio of expenses to average net
assets............................. 0.92%(c) 0.51%(c) 0.51%(c) 0.79% 0.38% 0.54%(c)
Ratio of net investment income to
average net assets................. 4.90%(c) 5.28%(c) 5.28%(c) 5.09% 5.31% 5.57%(c)
Ratio of expenses to average net
assets*............................ 1.02%(c) 0.87%(c) 0.87%(c) 1.04% 0.67% 0.90%(c)
Ratio of net investment income to
average net assets*................ 4.80%(c) 4.92%(c) 4.92%(c) 4.83% 5.02% 5.22%(c)
<FN>
- ---------
* 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.
</TABLE>
See notes to financial statements.
-84-
<PAGE> 86
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. TREASURY MONEY MARKET FUND
--------------------------------------------------------------
FOR THE SIX MONTHS ENDED
JANUARY 31, 1996
----------------------------- JANUARY 11, 1995 TO
JULY 31, 1995(A)
(UNAUDITED) -----------------------------
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................................. 0.024 0.026 0.025 0.028 0.030 0.029
------- ------- ------- ------- ------- -------
Distributions
Net investment income................................. (0.024) (0.026) (0.025) (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(b)......................................... 2.46% 2.67% 2.56% 2.79% 3.02% 2.90%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)....................... $78,962 $ 14 $24,396 $73,423 $ 14 $ 9,659
Ratio of expenses to average net assets(c).............. 0.71% 0.30% 0.51% 0.81% 0.40% 0.61%
Ratio of net investment income to average net
assets(c)............................................. 4.84% 5.24% 5.00% 5.02% 5.56% 5.25%
Ratio of expenses to average net assets*(c)............. 1.06% 0.90% 0.91% 1.17% 0.75% 1.01%
Ratio of net investment income to average net
assets*(c)............................................ 4.49% 4.64% 4.60% 4.66% 5.21% 4.86%
<FN>
- ---------
* 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.
</TABLE>
See notes to financial statements.
-85-
<PAGE> 87
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------
FOR THE SIX MONTHS ENDED
JANUARY 31, 1996
----------------------------- JANUARY 9, 1995 TO
JULY 31, 1995(A)
(UNAUDITED) -----------------------------
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................................. 0.015 0.017 0.016 0.017 0.019 0.017
------- ------- ------- ------- ------- -------
Distributions
Net investment income................................. (0.015) (0.017) (0.016) (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(b)......................................... 1.51% 1.72% 1.59% 1.66% 1.88% 1.73%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)....................... $34,922 $ 29 $ 2,282 $33,569 $ 14 $ 1,250
Ratio of expenses to average net assets(c).............. 0.94% 0.51% 0.78% 1.00% 0.59% 0.85%
Ratio of net investment income to average net
assets(c)............................................. 2.99% 3.64% 3.17% 2.98% 3.38% 3.19%
Ratio of expenses to average net assets*(c)............. 1.29% 1.11% 1.13% 1.36% 0.94% 1.21%
Ratio of net investment income to average net
assets*(c)............................................ 2.64% 3.04% 2.82% 2.61% 3.03% 2.83%
<FN>
- ---------
* 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.
</TABLE>
See notes to financial statements.
-86-
<PAGE> 88
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERMEDIATE BOND FUND
---------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED
JANUARY 31, 1996
------------------------------------ AUGUST 1, 1994 TO
JULY 31, 1995(A)
(UNAUDITED) --------------------------------
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.................... 0.29 0.29 0.24 0.53 0.64 0.46
Net realized and unrealized gains from
investments............................ 0.28 0.29 0.29 0.11 0.14 0.05
------- -------- ------- ------- -------- -------
Total from Investment Activities... 0.57 0.58 0.53 0.64 0.78 0.51
------- -------- ------- ------- -------- -------
Distributions
Net investment income.................... (0.28) (0.29) (0.24) (0.58) (0.62) (0.55)
------- -------- ------- ------- -------- -------
Total Distributions................ (0.28) (0.29) (0.24) (0.58) (0.62) (0.55)
------- -------- ------- ------- -------- -------
NET ASSET VALUE, END OF PERIOD............. $ 10.35 $ 10.45 $ 10.25 $ 10.06 $ 10.16 $ 9.96
======= ======== ======= ======= ======== =======
Total Return--excluding sales and
redemption charges....................... 5.73% (b) 5.80%(b) 5.29%(b) 6.67% 8.09% 5.42%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).......... $ 544 $150,998 $ 148 $ 381 $141,399 $ 133
Ratio of expenses to average net assets.... 1.01%(c) 0.75%(c) 1.75%(c) 0.80% 0.41% 1.59%
Ratio of net investment income to average
net assets............................... 5.36%(c) 5.60%(c) 4.61%(c) 5.94% 6.31% 5.18%
Ratio of expenses to average net assets*... 1.16%(c) 1.16%(c) 1.90%(c) 1.17% 0.91% 1.92%
Ratio of net investment income to average
net assets*.............................. 5.21%(c) 5.19%(c) 4.46%(c) 5.57% 5.81% 4.85%
Portfolio Turnover(d)...................... 38% 38% 38% 107% 107% 107%
<FN>
- ---------
* 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.
</TABLE>
See notes to financial statements.
-87-
<PAGE> 89
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
DIVERSIFIED BOND FUND
---------------------------------------------------------------
FOR THE SIX MONTHS ENDED
JANUARY 31, 1996
------------------------------ MAY 2, 1995 TO
JULY 31, 1995 (A)
(UNAUDITED) -----------------------------
CLASS A CLASS Y CLASS C CLASS A CLASS Y CLASS C
------- -------- ------- ------- ------- -------
<CAPTION>
<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................................ 0.41 0.30 -- 0.01 0.15 0.01
Net realized and unrealized gains from investments... 0.25 0.42 0.28 0.30 0.31 0.33
------- -------- ------- ------- ------- -------
Total from Investment Activities............... 0.66 0.72 0.28 0.31 0.46 0.34
------- -------- ------- ------- ------- -------
Distributions
Net investment income................................ (0.28) (0.30) (0.25) (0.13) (0.13) (0.12)
Net realized gains................................... (0.16) (0.16) (0.16) -- -- --
------- -------- ------- ------- ------- -------
Total Distributions............................ (0.44) (0.46) (0.41) (0.13) (0.13) (0.12)
------- -------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD......................... $10.40 $ 10.59 $10.09 $10.18 $ 10.33 $10.22
======= ======== ======= ======= ======= =======
Total Return--excluding sales and redemption charges... 6.54% 7.02% 2.73 % 3.07% 4.58% 3.35%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)...................... $ 91 $147,152 ** ** $99,347 **
Ratio of expenses to average net assets(c)............. 0.86% 0.61% 0.40 % 0.95% 0.70% 1.70%
Ratio of net investment income to average net
assets(c)............................................ 5.39% 5.72% (0.60 )% 5.66% 5.91% 4.91%
Ratio of expenses to average net assets*(c)............ 1.15% 1.16% 2.16 % 1.25% 1.00% 2.00%
Ratio of net investment income to average net
assets*(c)........................................... 5.10% 5.17% (2.36 )% 5.36% 5.61% 4.61%
Portfolio Turnover (d)................................. 42% 42% 42 % 34% 34% 34%
<FN>
- ---------
* 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.
</TABLE>
See notes to financial statements.
-88-
<PAGE> 90
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SMALL COMPANIES VALUE FUND
----------------------------------------------------------------
FOR THE SIX MONTHS ENDED
JANUARY 31, 1996
------------------------------ AUGUST 1, 1994 TO
JULY 31, 1995 (A)
(UNAUDITED) ------------------------------
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)............... 0.03 0.03 (0.01) 0.09 0.13 (0.03)
Net realized and unrealized gains from
investments.............................. 1.23 1.20 1.15 3.29 3.30 3.29
------- -------- ------- ------- -------- -------
Total from Investment Activities..... 1.26 1.23 1.14 3.38 3.43 3.26
------- -------- ------- ------- -------- -------
Distributions
Net investment income...................... (0.03) (0.04) -- (0.10) (0.12) (0.07)
Net realized gains......................... (1.11) (1.11) (1.11) (0.05) (0.05) (0.05)
------- -------- ------- ------- -------- -------
Total Distributions.................. (1.14) (1.15) (1.11) (0.15) (0.17) (0.12)
------- -------- ------- ------- -------- -------
NET ASSET VALUE, END OF PERIOD............... $13.35 $ 13.34 $13.17 $13.23 $ 13.26 $13.14
======= ======== ======= ======= ======== =======
Total Return--excluding sales and redemption
charges.................................... 9.89%(b) 9.69%(b) 9.05 %(b) 34.29% 34.76% 33.02 %
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)............ $4,591 $259,249 $ 752 $1,257 $209,626 $ 312
Ratio of expenses to average net assets...... 1.33%(c) 1.08%(c) 2.07 %(c) 1.11% 0.60% 1.85 %
Ratio of net investment income to average net
assets..................................... 0.18%(c) 0.44%(c) (0.55) %(c) 0.63% 1.20% (0.10) %
Ratio of expenses to average net assets*..... 1.33%(c) 1.33%(c) 2.08 %(c) 1.38% 1.12% 2.13 %
Ratio of net investment income to average net
assets*.................................... 0.18%(c) 0.19%(c) (0.56) %(c) 0.36% 0.68% (0.38) %
Portfolio Turnover (d)....................... 16% 16% 16 % 37% 37% 37 %
<FN>
- ---------
* 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.
</TABLE>
See notes to financial statements.
-89-
<PAGE> 91
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LARGE COMPANIES VALUE FUND
---------------------------------------------------------------
FOR THE SIX MONTHS ENDED
JANUARY 31, 1996
------------------------------ AUGUST 1, 1994 TO
JULY 31, 1995 (A)
(UNAUDITED) -----------------------------
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................................ 0.10 0.11 0.08 0.18 0.24 0.12
Net realized and unrealized gains from investments... 0.79 0.81 0.76 2.23 2.22 2.11
------- -------- ------- ------- ------- -------
Total from Investment Activities............... 0.89 0.92 0.84 2.41 2.46 2.23
------- -------- ------- ------- ------- -------
Distributions
Net investment income................................ (0.12) (0.13) (0.07) (0.18) (0.20) (0.16)
Net realized gains................................... (1.00) (1.00) (1.00) (0.03) (0.03) (0.03)
------- -------- ------- ------- ------- -------
Total Distributions............................ (1.12) (1.13) (1.07) (0.21) (0.23) (0.19)
------- -------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD......................... $11.97 $ 12.02 $11.81 $12.20 $ 12.23 $12.04
======= ======== ======= ======= ======= =======
Total Return--excluding sales and redemption charges... 8.00% 8.27% 7.69% 24.61% 25.04% 22.78%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)...................... $2,125 $104,899 $ 525 $1,056 $98,127 $ 271
Ratio of expenses to average net assets................ 1.18% 0.93% 1.92% 1.04% 0.53% 1.78%
Ratio of net investment income to average net assets... 1.61% 1.84% 0.86% 1.70% 2.19% 0.91%
Ratio of expenses to average net assets*............... 1.33% 1.33% 2.08% 1.38% 1.11% 2.13%
Ratio of net investment income to average net
assets*.............................................. 1.46% 1.44% 0.70% 1.36% 1.61% 0.56%
Portfolio Turnover(d).................................. 23% 23% 23% 48% 48% 48%
<FN>
- ---------
* 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.
</TABLE>
See notes to financial statements.
-90-
<PAGE> 92
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OPTIMIZED STOCK FUND
----------------------------------------------------------------
FOR THE SIX MONTHS ENDED
JANUARY 31, 1996
------------------------------ MAY 2, 1995 TO
JULY 31, 1995 (A)
(UNAUDITED) ------------------------------
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............................... 0.10 0.11 0.05 0.03 0.06 0.03
Net realized and unrealized gains from
investments....................................... 1.34 1.34 1.36 0.93 0.91 0.91
------- -------- ------- ------- -------- -------
Total from Investment Activities.............. 1.44 1.45 1.41 0.96 0.97 0.94
======= ======== ======= ======= ======== =======
Distributions
Net investment income............................... (0.13) (0.13) (0.09) (0.02) (0.02) (0.02)
Net realized gains.................................. (0.20) (0.20) (0.20) -- -- --
------- -------- ------- ------- -------- -------
Total Distributions........................... (0.33) (0.33) (0.29) (0.02) (0.02) (0.02)
------- -------- ------- ------- -------- -------
NET ASSET VALUE, END OF PERIOD........................ $12.05 $ 12.07 $12.04 $10.94 $ 10.95 $10.92
======= ======== ======= ======= ======== =======
Total Return--excluding sales and redemption
charges............................................. 13.26% 13.43% 13.03% 9.64% 9.74% 9.41%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)..................... $ 316 $205,349 $ 55 $ 35 $148,782 $ 20
Ratio of expenses to average net assets(c)............ 0.85% 0.60% 1.59% 0.91% 0.68% 1.68%
Ratio of net investment income to average net
assets(c)........................................... 1.50% 1.86% 0.82% 1.03% 2.38% 1.13%
Ratio of expenses to average net assets*(c)........... 1.05% 1.06% 1.79% 1.10% 0.88% 1.88%
Ratio of net investment income to average net
assets*(c).......................................... 1.30% 1.40% 0.62% 0.85% 2.18% 0.92%
Portfolio Turnover(d)................................. 29% 29% 29% 5% 5% 5%
<FN>
- ---------
* 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.
</TABLE>
See notes to financial statements.
-91-
<PAGE> 93
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERNATIONAL OPPORTUNITIES FUND
---------------------------------------------------------------
FOR THE SIX MONTHS ENDED
JANUARY 31, 1996
------------------------------ JULY 3, 1995 TO
JULY 31, 1995 (A)
(UNAUDITED) -----------------------------
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).......................... 0.01 0.02 -- -- 0.01 (0.01)
Net realized and unrealized gains from investments... 0.13 0.13 0.14 0.45 0.47 0.47
------- -------- ------- ------- ------- -------
Total from Investment Activities............... 0.14 0.15 0.14 0.45 0.48 0.46
------- -------- ------- ------- ------- -------
Distributions
Net investment income................................ (0.02) (0.03) (0.01) -- -- --
------- -------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD......................... $10.57 $ 10.60 $10.59 $10.45 $ 10.48 $10.46
======= ======== ======= ======= ======= =======
Total Return--excluding sales and redemption charges... 1.39% 1.46% 1.37 % 4.50% 4.80% 4.60%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)...................... $2,006 $117,029 $ 5 $ 20 $60,073 **
Ratio of expenses to average net assets(c)............. 1.09% 0.83% 1.79 % 1.40% 1.18% 2.18%
Ratio of net investment income to average net
assets(c)............................................ 0.68% 0.93% (0.30)% 0.23% 1.32% 0.32%
Ratio of expenses to average net assets*(c)............ 1.35% 1.34% 1.79 % 1.54% 1.39% 2.39%
Ratio of net investment income to average net
assets*(c)........................................... 0.42% 0.42% (0.30)% 0.09% 1.12% 0.12%
Portfolio Turnover(d).................................. 1% 1% 1 % 0% 0% 0%
<FN>
- ---------
* 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.
</TABLE>
See notes to financial statements.
-92-
<PAGE> 94
Semi-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
For the six months ended January 31, 1996
Qualivest
Funds
Qualivest 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.
