<PAGE> 1
Contents
<TABLE>
<S> <C>
QUALIVEST FUND FACTS 1
A GUIDE TO YOUR
SHAREHOLDER REPORT 3
CHAIRMAN'S LETTER 5
MARKET REVIEW AND
ECONOMIC OUTLOOK 6
PORTFOLIO REVIEWS 7
STATEMENTS OF ASSETS
AND LIABILITIES 18
STATEMENTS OF OPERATIONS 22
STATEMENTS OF CHANGES
IN NET ASSETS 26
SCHEDULES OF PORTFOLIO INVESTMENTS 31
NOTES TO FINANCIAL STATEMENTS 80
FINANCIAL HIGHLIGHTS 93
</TABLE>
<PAGE> 2
QUALIVEST FUND FACTS
Whatever your investment goal or investing style, you'll find a Qualivest Fund
or Funds to suit you. The Qualivest Mutual Funds offer funds designed for
growth, income and capital preservation. To put together a portfolio tailored to
your needs, consult with a U.S. Bancorp Securities registered representative* or
call 1-800-743-8637 for prospectuses, which you should read carefully before
investing.
<TABLE>
<CAPTION>
PORTFOLIO CONSISTS DESIGNED FOR INVESTORS
QUALIVEST FUND OBJECTIVE PRIMARILY OF . . . WHO . . .
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STOCK FUNDS
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<S> <C> <C> <C>
Qualivest Small Capital appreciation Small U.S. companies Have a long time
Companies Value that the portfolio horizon, seek
Fund(1) manager believes to be significant investment
undervalued and to have growth and can accept
superior growth higher-than- average
potential volatility
Qualivest Capital appreciation Stocks of companies Have a long time
International outside the U.S. that horizon, seek
Opportunities Fund(2) are included in the MSCI significant investment
EAFE Index(3) growth and can accept
a higher-than-average
volatility
Qualivest Large Long-term capital Large U.S. companies Have a medium to long
Companies Value Fund appreciation whose stocks are time horizon and seek
considered by the investment growth
portfolio manager to be
undervalued
Qualivest Optimized Capital appreciation Stocks in the S&P 500 Have a medium to long
Stock Fund and current income Stock Index,(4) time horizon and seek
emphasizing investment growth and
top-performing stocks income
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BOND FUNDS
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Qualivest Diversified Current income and Securities issued by the Seek current income
Bond Fund preservation of U.S. Government and its
capital agencies,
mortgage-related
securities and corporate
bonds with 7-11 yr.
average maturity
Qualivest Current income and Securities issued by the Seek current income
Intermediate Bond preservation of U.S. Government, its
Fund capital agencies and by
corporations with 3-7
yr. average maturity
</TABLE>
-1-
<PAGE> 3
<TABLE>
<CAPTION>
PORTFOLIO CONSISTS DESIGNED FOR INVESTORS
QUALIVEST FUND OBJECTIVE PRIMARILY OF . . . WHO . . .
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MONEY MARKET FUNDS(5)
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<S> <C> <C> <C>
Qualivest Money Current income, High-quality, short-term Seek a convenient way
Market Fund liquidity & stability money-market instruments to accumulate cash
of principal while waiting for
other investment
opportunities
Qualivest Tax-Free Income free from High-quality, municipal Seek a tax-free way to
Money Market Fund(6) federal income tax & money-market securities accumulate cash while
stability of waiting for other
principal investment
opportunities
Qualivest U.S. Current income, Money-market securities Seek a convenient way
Treasury Money Market liquidity & stability issued or guaranteed by to accumulate cash
Fund of principal the U.S. Government or while waiting for
its agencies other investment
opportunities
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ASSET ALLOCATION FUNDS
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Qualivest Allocated Current income, with Qualivest stock and bond Seek current income
Conservative Fund appreciation a funds
secondary objective
of long-term capital
Qualivest Allocated Long-term capital Qualivest stock and bond Seek a combination of
Balanced Fund appreciation and funds capital appreciation
current income and income
Qualivest Allocated Capital appreciation Qualivest stock and bond Have a medium to long
Growth Fund and income growth funds time horizon and seek
investment growth
Qualivest Allocated Maximum capital Qualivest stock funds Have a long time
Aggressive Fund appreciation horizon and seek
significant investment
growth
</TABLE>
* The Qualivest Funds are available through U.S. Bancorp Securities, a brokerage
subsidiary of U.S. Bancorp and a member of NASD and SIPC.
(1) Small-cap funds typically carry additional risks since smaller companies
generally have a higher risk of failure. Historically, smaller-company
stocks have experienced a greater degree of market volatility than larger
capitalization stocks on average.
(2) International investing is subject to certain risk factors, including
currency exchange-rate volatility, possible political instability and/or
differences in financial standards and taxation.
(3) The Morgan Stanley Capital International EAFE (Europe, Australia, Asia and
Far East) Index is an unmanaged index generally representative of
established international stock markets.
(4) The Standard & Poor's 500 Stock Index is an unmanaged index generally
representative of the U.S. stock market.
(5) An investment in the Funds is neither insured nor guaranteed by the U.S.
Government. There can be no assurances that these Funds will be able to
maintain a stable NAV of $1.00 per share.
(6) Depending on your tax bracket, some or all of the income may be subject to
the federal alternative minimum tax and to certain state and local taxes.
-2-
<PAGE> 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 MARKET REVIEW AND OUTLOOK gives you an overview of the economy and the
financial markets for the reporting period and the Investment Adviser's outlook
for the months ahead.
The INTERVIEWS WITH THE FUND MANAGERS provide you with information about each
Fund's performance, investment strategy and changes in portfolio holdings.
To help illustrate Fund performance you will find a chart comparing a
hypothetical $10,000 investment in the Fund against a widely used industry
benchmark. This index depicts the performance of a broad universe of investments
similar to those held in the Fund. When comparing Fund performance to an index,
it is important to keep in mind that the Fund's holdings may be restricted--by
the guidelines of its prospectus--to a much smaller range of investments than
those represented by an index. In addition, an index does not reflect any
expenses that may accompany an investment in the funds, such as management fees,
portfolio transaction costs and sales charges.
The STATEMENT OF ASSETS AND LIABILITIES lists each Fund's assets and
liabilities. This is, in effect, the Fund's balance sheet as of the date of the
report.
ASSETS: summarizes the Fund's assets stated at market
value, including investments owned, dividends, interest
and other amounts owed to each Fund by outside parties
and any other assets owned by the Fund
LIABILITIES: summarizes all amounts owed by the Fund,
including distributions declared but not yet paid to
shareholders and other amounts owed to outside parties
ART NET ASSETS: (assets minus liabilities): summarizes the
amounts that compose the Fund's net assets, including
capital, undistributed net investment income,
unrealized gains (or losses) from investments owned and
realized gains (or losses) from investments sold
The number of shares owned by shareholders in the Fund
NET ASSET VALUE: the market value of the Fund's total
net assets divided by the number of outstanding shares,
or the net asset value (NAV) per share
The NAV plus sales charges
The STATEMENT OF OPERATIONS lists the results of operating activities during the
period.
INVESTMENT INCOME includes dividend and interest income
earned by the investments in the Fund
EXPENSES lists expenses incurred by the Fund
ART
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
<PAGE> 5
The STATEMENT OF CHANGES IN NET ASSETS lists the activities that affected the
value of the Fund's total net assets during the two most recent reporting
periods.
See Statement of Operations
Distributions declared to shareholders from net
investment income or net realized gains during the
period
Dollar amount of mutual fund shares issued, reinvested
ART or redeemed
Compares total net assets as of the end of the current
and prior periods
Share Transactions lists the number of Fund shares
issued, reinvested and redeemed
The SCHEDULE OF PORTFOLIO INVESTMENTS lists each investment holding in the Fund
as of the date of the report. Investments are usually grouped by category (by
industry or security type, for example). The percentage of the Fund's net assets
represented by these groupings is also indicated.
Type of security
Industry sector and percentage of the Fund's net assets
ART represented by investments in that sector (if
applicable)
Individual portfolio holdings with number of shares and
market value as of the date of the report
The NOTES TO FINANCIAL STATEMENTS describe in more detail certain Fund
procedures and activities, such as accounting procedures, contractual
arrangements between the Fund and its service providers, specialized Fund
transactions and other general information about the Fund.
The FINANCIAL HIGHLIGHTS summarizes Fund activity as it affects a single Fund
share--including net investment income, realized and unrealized gains and losses
and dividends and distributions of the Fund. This section also gives key data
such as the total investment return for each period, the portfolio turnover rate
(an indication of portfolio activity) and the ratios of expenses and net
investment income to average net assets.
The financial statements and financial highlights included in annual reports are
audited by an independent public accounting firm and cover the activity for the
past fiscal year. A semi-annual report is a six-month interim report that
includes financial statements that will not be audited by an independent
accounting firm.
<PAGE> 6
QUALIVEST FUNDS
Semi-Annual Report
January 31, 1997
CHAIRMAN'S LETTER
Dear Shareholders:
It is my pleasure to present the semi-annual report of the Qualivest Mutual
Funds for the six months ended January 31, 1997. The period was characterized by
a booming stock market and modest bond market gains.
Although inflation remained under control during 1996, investors were very
sensitive to stronger economic data. As a result, interest rates were volatile
during the period, and bond returns were modest. Although the economy continued
to grow at a healthy rate, there was very little evidence that inflation would
return. Therefore, the Federal Reserve Board chose to keep short-term interest
rates at 5.25%.
The stock market's performance was anything but modest, with the Dow Jones
Industrial Average piercing 7000 on February 13, 1997. Qualivest Mutual Funds
focusing on stocks certainly benefited from this environment. One in particular,
the Qualivest Small Companies Value Fund, outperformed its benchmark, the
Russell 2000, by 10.97% for the six month period.
We are very much aware that we are in the midst of one of the most powerful bull
markets in history. Our investment posture is increasingly cautious, as dividend
yields sink below 2% and stock prices approach 20 times 1997 earnings. As a
means of controlling risk, mutual funds such as the Qualivest Mutual Funds offer
professional management as well as broad diversification by investing in a wide
variety of stocks.
Speaking of diversification, the Dynamic Allocation Series--Qualivest's "fund of
funds" approach to investing--completes its first year on May 1, 1997. These
four funds, provide well-balanced portfolios invested across different asset
classes helping you maintain the proper allocation among stocks and bonds over
time. The funds offer a spectrum of conservative to aggressive approaches and
invest in the various Qualivest Funds.
Following this letter, we present interviews with the portfolio managers of the
Qualivest Mutual Funds as well as detailed performance data. We urge you to read
the entire report to help you monitor the progress of your investments.
In the two years since the Funds were launched on August 1, 1994, the Qualivest
family has grown from $530 million to $2.3 billion in assets under management.
We appreciate your confidence in us and look forward to continuing to help you
meet your investment goals.
Sincerely,
/s/ GEORGE R. LANDRETH
George R. Landreth
Chairman, Qualivest Mutual Funds
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THE QUALIVEST MUTUAL FUNDS, LIKE ALL MUTUAL FUNDS, ARE NOT INSURED BY THE FDIC
OR ANY OTHER U.S. GOVERNMENT AGENCY AND ARE NOT DEPOSITS OR OTHER OBLIGATIONS
OF, OR GUARANTEED BY, U.S. BANCORP OR ITS AFFILIATES OR SUBSIDIARIES. THE FUNDS
ARE SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT
INVESTED. THE FUNDS MAY INVOLVE SALES CHARGES AND OTHER FEES.
- -------------------------------------------------------------------------------
-5-
<PAGE> 7
MARKET REVIEW AND ECONOMIC OUTLOOK
FROM QUALIVEST CAPITAL MANAGEMENT
HOW WOULD YOU CHARACTERIZE THE CURRENT INVESTMENT ENVIRONMENT?
TIM LEACH: The environment continues to look very positive. The economy has now
expanded for six consecutive years, the second longest pace time expansion on
record. The longest was a 7 1/2 year expansion in the 1980s. Prior to that, the
average expansion lasted less than 3 years and was followed by an 18-month
recession. Business cycles usually end when excesses cause imbalances, and so
far this business cycle seems to have avoided the excesses associated with past
business cycles. We do not see the economy expanding dramatically or moving into
recession. The economy continues to grow, although slowly. We see continuing
signs of some slowing in retail sales and housing and we expect to see
automobile sales slow somewhat. Although the fourth quarter of 1996 was strong
from a GDP point of view, fourth quarter corporate profits suggest an annual
growth in earnings for the S&P 500 in the 7-9% range rather than the
double-digit growth that we were seeing last year. International business
competition is combining with higher domestic labor costs to reduce profit
margins.
WHY HAS THE STOCK MARKET'S PERFORMANCE BEEN DOMINATED BY LARGE COMPANIES?
TIM LEACH: Very large companies have been streamlining and finally achieving
efficiencies from reducing costs and implementing new technologies, as well as
expanding internationally. From a taxation and regulatory point of view, we have
one of the least encumbered markets in the world. U.S. multinational
corporations are the most competitive they have been in 20 years. To a large
extent, the huge companies in our market-the 30 Dow Jones Industrials and
two-thirds of the Standard & Poor's 500 have been growing substantially overseas
as well as in the U.S. These companies will continue to be formidable in the
international marketplace for years to come.
HOW IS THE STRONGER DOLLAR IMPACTING THESE CORPORATIONS?
TIM LEACH: Having been shored up by the international sense that our politicians
in Washington on both sides of the political spectrum are trying to exercise
fiscal restraint, my expectation is that the dollar will continue to be
relatively strong. This translates into a tougher environment for exporters and
also opens an opportunity for depreciating currency imports to play to a heavier
degree in our marketplace.
WHAT IS YOUR OUTLOOK FOR INFLATION, INTEREST RATES AND THE MARKETS?
TIM LEACH: Our outlook for interest rates and inflation continues to be
moderate. There will be some pressure on inflation as our economy continues to
grow, but with an economy that isn't growing excessively, we believe that
inflation is likely to be restrained and should not become a significant problem
for us. Inflation growth has been muted to some extent by the strengthening
dollar. We continue to import more and more goods from, areas with low labor
costs such as Thailand, China and Indonesia, and that has helped keep our
inflation rate low. Because we believe that interest rates will remain in a
trading range or trend downward, we are bullish on the bond market. In addition,
we believe that the stock market will rise more slowly in 1997 than 1996.
Although January 1997 was very robust and very much a continuation of the bull
market that we've had for the past couple of years, we anticipate that growth in
the stock market is not likely to be maintained at that level. *From Strategy
Update, January 1997
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<PAGE> 8
QUALIVEST SMALL COMPANIES(1)
VALUE FUND
For the six months ended January 31, 1997, the Fund produced a total return of
28.95%. For the 12 months ended January 31, 1997, the Fund produced a total
return of 34.87%. (Returns are for Class A shares, without the sales charge.) In
comparison, the Russell 2000 Index returned 17.98% and 19.00% for the six- and
12-month periods, respectively.
<TABLE>
<CAPTION>
TOTAL RETURN*
- -------------------------------------------------------------
AVERAGE ANNUAL
--------------------------------
SINCE
AS OF 1/31/97 6 MONTHS 1 YEAR 5 YEARS++ INCEPTION++
<S> <C> <C> <C> <C>
Load** 23.12% 28.79% 20.92% 21.66%
Without Load 28.95% 34.87% 22.04% 22.28%
</TABLE>
<TABLE>
<CAPTION>
SINCE
AS OF 12/31/96 1 YEAR 5 YEARS++ INCEPTION++
<S> <C> <C> <C>
Load** 14.65% 21.18% 20.72%
Without Load 20.07% 22.28% 21.35%
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</TABLE>
* Past performance is no guarantee of future results. The investment return and
principal value will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than the original cost.
** 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.
The Qualivest Small Companies Value Fund is managed by Dale Benson, who has more
than 20 years of experience in the investment field. In addition to being a
Chartered Financial Analyst, Mr. Benson holds a Ph.D. in history from the
University of Maine.
WHAT SECTORS PERFORMED PARTICULARLY WELL DURING THE SIX-MONTH PERIOD?
DALE BENSON: We were overweighted in two sectors: technology and financial
services, that did very well. Applied Magnetics (8.15% of the portfolio
holdings), which makes components for computers, rose from $9 last summer to $50
at the end of January. The company's products have benefited from the trend
toward larger and larger hard-drive memory. Astoria Financial (1.20%), a New
York-based savings and loan, is up more than 60% for the past year. Orion
Capital (0.82%), a California-based company specializing in workers'
compensation, is finally being recognized by the market after posting strong
earnings. Tucson Electric (3.74%) remains a top ten holding, and the company
continues to generate cash and reduce its debt burden. In addition, the energy
sector performed well during the period. The strength in oil prices and
increased exploration activity have benefited the Fund's holdings in the energy
sector, the largest of which are Abacan Resources (1.84%) and Forest Oil
(1.03%).
WHAT ARE SOME EXAMPLES OF RECENT PURCHASES?
DALE BENSON: We have recently added TNP Enterprises (0.55%) and El Paso Electric
(0.44%), which are physically adjacent to Tuscon Electric in the Southwestern
U.S. We believe that this region of the country represents significant growth
opportunities in the deregulating utility environment. Recently, we bought
Magnetek (1.32%), an electrical equipment company based in Los Angeles, at
between $8 and $12 a share, and now it's $16. The stock was depressed after the
company reported disappointing earnings and a burdensome debt load. They sold
some businesses, paid down debt, and are now generating good cash flow. We
bought in at a time when nobody liked the stock. Magnetek dominates its markets
in the pieces of the businesses that are left. As of January 31, 1997, the top
five holdings in the Fund were Applied Magnetics Corp. (8.15%), Tucson Electric
Power Co. (3.74%), Fremont General Corp. (2.14%), Air & Water Technology (2.13%)
and Pioneer Financial Services (2.09%).***
WHAT IS YOUR OUTLOOK?
DALE BENSON: We try to buy cheap stocks because we're value investors. For us to
have a macro view of the market belies the strategy we pursue. Using this
strategy, it really doesn't matter if the Dow
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<PAGE> 9
Jones Industrial Average is at 5000 or if it is at 7000. Our stocks have market
capitalizations under $500 million and are not widely followed by Wall Street.
The reason we have done well over the years is that we don't particularly care
what the market does when we're buying a company. If we think the company is
undervalued, then we'll buy it. Other so-called value investors buy value that
everyone perceives to be value. We're buying value that others don't want to
touch.
(1) 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 composition of the Fund's holdings is subject to change.
-8-
<PAGE> 10
QUALIVEST INTERNATIONAL
OPPORTUNITIES(1) FUND
For the six months ended January 31, 1997, the Fund produced a total return of
0.20%. For the 12 months ended January 31, 1997, the Fund produced a total
return of 1.09%. (Returns are for Class A shares, without the sales charge.) In
comparison, the Morgan Stanley Capital International EAFE (Europe, Australia and
Far East) Index returned 1.00% and 2.22% for the six- and 12-month periods,
respectively.
<TABLE>
<CAPTION>
TOTAL RETURN*
- ---------------------------------------------------------
AVERAGE ANNUAL
--------------------
SINCE
INCEPTION
AS OF 1/31/97 6 MONTHS 1 YEAR (07/03/95)
<S> <C> <C> <C>
Load** -4.30% -3.48% 1.44%
Without Load 0.20% 1.09% 4.43%
</TABLE>
<TABLE>
<CAPTION>
SINCE
INCEPTION
AS OF 12/31/96 1 YEAR (07/03/95)
<S> <C> <C>
Load** 0.63% 4.47%
Without Load 4.81% 7.38%
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</TABLE>
* Past performance is no guarantee of future results. The investment return and
principal value will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than the original cost.
** Reflects 4.50% maximum sales charge.
The Qualivest International Opportunities Fund is co-managed by Dan Rauchle,
lead manager and Tim Leach, co-manager. Mr. Rauchle holds an MBA and JD degree
from the University of Wisconsin. Mr. Leach holds a bachelor's degree in
business management and agricultural science and an MBA from the University of
California, Berkley.
HOW WOULD YOU DESCRIBE THE INTERNATIONAL OPPORTUNITIES FUND?
TIM LEACH (CO-MANAGER): The International Opportunities Fund attempts to match
the EAFE Index by investing in about 700 stocks. These stocks are selected from
the EAFE Index of 1,100 stocks representing 20 developed countries around the
world. In Europe, the countries include Austria, Belgium, Denmark, Finland,
France, Germany, Ireland, Italy, the Netherlands, Norway, Spain, Sweden,
Switzerland and the United Kingdom. In Asia, the countries are Hong Kong, Japan,
Malaysia and Singapore. In addition, the Fund invests in companies located in
Australia and New Zealand.
HOW WOULD YOU ASSESS THE FUND'S RECENT PERFORMANCE?
TIM LEACH (CO-MANAGER): Over the past six months, the EAFE index has performed
in a mediocre fashion, certainly relative to the U.S. stock market. Japan, which
represents 40% of the index, was a big factor in that performance. Japan, which
has suffered from a deflationary economy and a banking and real estate crisis
for five years, has still not yet picked itself up off the ground. Another
factor was the strong dollar. While there was some positive performance in local
currency terms from other countries in EAFE, the stronger dollar took away a
fair amount of that positive return. In Europe, Germany is still struggling to
assimilate the former Eastern Germany into its economy. The rest of Continental
Europe has been weak as these countries cut government spending to prepare for
the upcoming unification of their currencies. As of January 31, 1997, the top
five holdings in the Fund were Toyota Motor Corp. (1.78%), Royal Dutch Petroleum
(1.62%), British Petroleum Co. (1.33%), Novartis AG (1.33%) and Bank of Tokyo
Mitsubishi (1.33%).***
WHAT IS YOUR OUTLOOK FOR JAPAN?
TIM LEACH (CO-MANAGER): Japan has discovered that it cannot be an island in the
international economy. Employers can't offer compensation packages that are
widely divergent from the international marketplace because the supply of labor
has become global. However, there are some positive signs coming out of Japan
today. Employment is growing, housing is improving and the weaker yen should
help exports. The major Japanese auto companies are reporting substantial
improvements in automobile sales in the U.S. Never underestimate Japan from a
competitive standpoint. Industrial Japan is very focused, and that has always
been a key to its success.
(1) International investing involves certain risk factors, such as
currency-rate volatility, differences in political, social or economic
conditions and in taxation, auditing and other financial standards.
*** The composition of the Fund's holdings is subject to change.
-9-
<PAGE> 11
QUALIVEST LARGE COMPANIES
VALUE FUND
For the six months ended January 31, 1997, the Fund produced a total return of
22.39%.* For the 12 months ended January 31, 1997, the Fund produced a total
return of 22.59%. (Returns are for Class A shares, without the sales charge.) In
comparison, the Standard & Poor's 500 Stock Index and the Lipper Growth and
Income Index produced 24.15%, 18.92% and 26.37%, 22.09% for the six- and
12-month periods, respectively.
<TABLE>
<CAPTION>
TOTAL RETURN*
- ---------------------------------------------------------
AVERAGE ANNUAL
--------------------
SINCE
INCEPTION
AS OF 1/31/97 6 MONTHS 1 YEAR (08/01/94)
<S> <C> <C> <C>
Load** 16.90% 17.11% 19.91%
Without Load 22.39% 22.59% 22.13%
</TABLE>
<TABLE>
<CAPTION>
SINCE
INCEPTION
AS OF 12/31/96 1 YEAR (08/01/94)
<S> <C> <C>
Load** 14.12% 17.96%
Without Load 19.51% 20.22%
- ---------------------------------------------------------
</TABLE>
* Past performance is no guarantee 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.
** Reflects 4.50% maximum sales charge.
The Qualivest Large Companies Value Fund is co-managed by John Dozier and John
Swank, each of whom has more than 20 years of experience in the investment
field. John Swank holds an MBA from Long Beach State University and is also a
Chartered Financial Analyst. John Dozier has a bachelor's degree in economics
from Claremont Men's College.
WHAT FACTORS AFFECTED YOUR PERFORMANCE?
JOHN DOZIER: Over the past year portfolio managers have been rewarded for
throwing caution to the wind and chasing fast-moving momentum stocks. After a
six-year bull market though, we believe our more risk-averse, value-driven style
makes more sense. Actually our performance has been quite good on a
risk-adjusted basis (beta of only .81)(1). We believe the Fund's low beta
combined with its relatively low average price/earnings ratio (75% of the S&P)
and above average dividend yield (2.5% versus 1.8% for the S&P) should provide
some downside protection in the event of a correction.
LET'S TAKE A LOOK AT SOME GOOD AREAS WITHIN THE FUND.
JOHN DOZIER: Certainly one area is the semiconductor industry. We added to our
positions in the ones that had really gotten beat up such as Advanced Micro
Devices (0.88% of the portfolio holdings) and National Semiconductor (1.18%).
Another excellent technology stock has been IBM (2.64%). There is a newfound
confidence in the company, and it was low priced relative to other technology
stocks. In the hotel and gaming area, ITT (1.47%) has been a big stock for us,
particularly after Hilton Hotel's recent hostile offer to buy the company. ITT's
stock had been trading in the 60s until it announced that its gaming division
was going to have some near-term problems. We bought the stock in the low 40s.
The gaming business was only about one-third of the total, and a third of the
value was taken off the stock, so we figured we were getting the gaming business
for free. As of January 31, 1997, the top five holdings in the Fund were
Kennamental, Inc. (3.12%), IBM Corp. (2.64%), Sun Healthcare Group (2.60%),
Boise Cascade Corp. (2.50%) and Ford Motor Co. (2.07%).***
JOHN SWANK: In financial services, Citicorp (1.74%) has been a very successful
stock, more than tripling in the past three years. Much of the company's growth
is overseas, where they have a market presence in about 80 countries. There is a
lot more growth opportunity in these developing countries than in the U.S.
market, which is pretty saturated. Citicorp wants to be the Coca Cola of the
banking industry. Other strong banking companies include Nationsbank (0.70%) and
Mellon Bank (1.00%). Retail stocks are very inexpensive now, underperforming
because the consumer has a lot of debt and is more particular about what he or
she buys. We recently bought Federated Department Stores (1.13%), which owns
Macy's and Bloomingdales. When we bought the stock, it was selling at only 12
times 1997
-10-
<PAGE> 12
earnings, which we think is very inexpensive for a good name retail company with
strong growth prospects. Waban (1.76%) has been another good retailing stock for
us. Waban owns HomeBase and BJ's Wholesale, but plans to sell HomeBase and use
the proceeds to pay down debt. The stock is selling at just 11 times earnings.
WHAT IS YOUR OUTLOOK?
JOHN DOZIER: Going back to late 1994 when the Dow Jones Industrial Average was
at 4000, we were raging bulls. But you get more cautious when the Dow is 7000
and price/earnings multiples on 1997 earnings approach 20. The yield on the S&P
500 is 1.8%, the lowest it has ever been.
JOHN SWANK: I think the market is fully valued. However, since our Fund is
selling at a discount to the market in terms of its price/earnings ratio, and
our Fund has a higher dividend yield than the market, we think that we're in a
good position if we do have a correction.
*** The composition of the Fund's holdings is subject to change.
(1) Beta measures a stock's relative risk in relation to the rest of the stock
market. The Standard and Poor's 500 Index has a beta of 1. A stock with a
lower beta such as the Large Companies Value Fund, may be expected to rise
and fall more slowly than the market, whereas a stock with a higher beta
than 1 is more of a riskier relation to the market.
-11-
<PAGE> 13
QUALIVEST OPTIMIZED STOCK FUND
For the six months ended January 31, 1997, the Fund produced a total return of
24.02%.* For the 12 months ended January 31, 1997, the Fund produced a total
return of 25.23%. (Returns are for Class A shares, without the sales charge.) In
comparison, the Standard & Poor's 500 Stock Index returned 24.15% and 26.37% for
the six- and 12-month periods, respectively.
<TABLE>
<CAPTION>
TOTAL RETURN*
- ---------------------------------------------------------
AVERAGE ANNUAL
--------------------
SINCE
INCEPTION
AS OF 1/31/97 6 MONTHS 1 YEAR (05/02/95)
<S> <C> <C> <C>
Load** 18.45% 19.57% 25.31%
Without Load 24.02% 25.23% 28.63%
</TABLE>
<TABLE>
<CAPTION>
SINCE
INCEPTION
AS OF 12/31/96 1 YEAR (05/02/95)
<S> <C> <C>
Load** 16.46% 22.38%
Without Load 21.95% 25.80%
- ---------------------------------------------------------
</TABLE>
* Past performance is no guarantee 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.
** Reflects 4.50% maximum sales charge.
The Qualivest Optimized Stock Fund is managed by Tim Leach, chief investment
officer for Qualivest Capital Management, investment adviser to the Qualivest
Funds. Mr. Leach has more than 15 years of experience in the investment field
and holds an MBA from the University of California, Berkeley.
HOW DOES THIS PORTFOLIO DIFFERENT FROM A TRADITIONAL EQUITY STRATEGY?
TIM LEACH: The Optimized Stock Fund attempts to beat the S&P 500 Index using a
quantitative methodology, meaning that we make no subjective bets on stocks or
sectors. We created an optimization strategy that favors stocks that have seen
positive momentum in their share price and a higher expected total return than
other securities in their industry. We also manage this portfolio for lower
turnover, which helps reduce capital gains for our shareholders.
HOW WOULD YOU ASSESS YOUR PERFORMANCE?
TIM LEACH: This portfolio is intended to move very closely with the S&P 500,
with the idea that we are trying to deliver some excess return through
quantitative strategies. Typically, most quantitative strategies tend to result
in a tilt towards the value style of investing. In early 1996, we were lagging
behind the S&P 500 a little bit, and then we introduced some additional
strategies in the summer which began to impact performance in the second half of
the year.
WHAT IS YOUR OUTLOOK FOR THE FUND?
TIM LEACH: Our goal is to modestly outperform the S&P 500 Index, which we
believe will rise in 1997, but at a more moderate rate than the past two years.
-12-
<PAGE> 14
QUALIVEST INTERMEDIATE BOND FUND
For the six months ended January 31, 1997, the Fund produced a total return of
3.85%.* For the 12 months ended January 31, 1997, the Fund produced a total
return of 2.09%. (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 4.37% and 3.56% for the six- and
12-month periods, respectively.
<TABLE>
<CAPTION>
TOTAL RETURN*
- -------------------------------------------------------------
AVERAGE ANNUAL
-----------------------
SINCE
AS OF 1/31/97 6 MONTHS 1 YEAR 5 YEARS++ INCEPTION++
<S> <C> <C> <C> <C>
Load** 0.21% -1.52% 5.10% 6.69%
Without Load 3.85% 2.09% 5.85% 7.11%
</TABLE>
<TABLE>
<CAPTION>
SINCE
AS OF 12/31/96 1 YEAR 5 YEARS++ INCEPTION++
<S> <C> <C> <C>
Load** -1.06% 4.82% 6.72%
Without Load 2.49% 5.57% 7.14%
- -------------------------------------------------------------
</TABLE>
* Past performance is no guarantee 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.
** 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.
The Qualivest Intermediate Bond Fund is managed by Curry Garvin, who has more
than ten years of experience in financial analysis and portfolio management. In
addition to being a Chartered Financial Analyst, Mr. Garvin has a bachelor's
degree in finance from the University of Oregon.
WHY HAS THE BOND MARKET BEEN SO VOLATILE LATELY?
CURRY GARVIN: In the 1960s, 1970s and 1980s, the course of the economy was much
more predictable. Investors could look at the economy, see that we were late in
the cycle, predict that the Federal Reserve Board would raise interest rates,
extend maturities and perform well in relation to the market. But in the last
few years, the economy has moved in a much more narrow range. Instead of
quarters in which the economy grows 6% and then 1%, you see a series of 3%, 2%,
3%, 2% and so on. So investors are hunting around for the slightest hint of a
recession or a spurt of growth. People have become hypersensitive to economic
data.
AND YET, OUR MARKET IS RELATIVELY ATTRACTIVE COMPARED TO THE REST OF THE WORLD.
CURRY GARVIN: Japan's economy is bordering on disinflation and most of the
industrialized countries in Europe are experiencing high unemployment. To try to
correct that situation, foreign governments are lowering interest rates to
stimulate the economy, so that makes our market relatively attractive.
In addition, the strength of the dollar is very compelling. A foreign investor
who bought dollar-denominated fixed-income securities when the dollar was worth
80 yen in 1995 has done very well with the dollar at 125 yen today. We've had
good foreign inflows into our market.
WHAT HAS BEEN YOUR STRATEGY IN MANAGING THE FUND?
CURRY GARVIN: Many managers have not been using duration (sensitivity to
interest rates) to try to add returns to the portfolios. A lot of them have said
that they can't figure out where the economy is going, so they're going to take
away interest rates as a factor. To add incremental yield, they've turned to
non-Treasury products such as corporates, mortgages and asset-backed securities.
This has caused yield spreads on these products to narrow considerably compared
to Treasuries. We have increased exposure to asset-backed securities such as
home equity loans and AAA-rated collateralized mortgage obligations to get
additional yield. Within the government agency sector, we've been selling
noncallable agencies and buying callable agencies. With regard to corporates, we
have been market neutral. This economic expan-
-13-
<PAGE> 15
sion is six years old. When the next recession comes, that will put the squeeze
on corporate profits and will probably cause corporate bond prices to fall in
relation to Treasuries. However, it is difficult to time the economy, so we
would prefer to keep a neutral weighting in corporates because if you're
under-weighted in corporates, then you're giving up yield. But yield spreads are
so narrow that it isn't attractive to add any incremental credit risk at a time
when the economic cycle is getting stale.
WHAT IS YOUR OUTLOOK?
CURRY GARVIN: Our themes revolve around the economy slowing somewhat, interest
rates falling, the dollar strengthening and the attractiveness of our market
compared to markets overseas. We're seeking to add yield in a conservative
manner, keeping the portfolio's credit quality high and its duration slightly
longer than average. Our goal is to provide income with high quality.
-14-
<PAGE> 16
QUALIVEST DIVERSIFIED BOND FUND
For the six months ended January 31, 1997, the Fund produced a total return of
4.30%.* For the 12 months ended January 31, 1997, the Fund produced a total
return of 1.61%. (Returns are for Class A shares, without the sales charge.) In
comparison, the Fund's benchmark, the Lehman Brothers Aggregate Bond Index,
returned 4.94% and 3.25% for the six-and 12-month periods, respectively.
<TABLE>
<CAPTION>
TOTAL RETURN*
- ---------------------------------------------------------
AVERAGE ANNUAL
--------------------
SINCE
INCEPTION
AS OF 1/31/97 6 MONTHS 1 YEAR (05/02/95)
<S> <C> <C> <C>
Load** 0.62% -1.98% 4.32%
Without Load 4.30% 1.61% 6.44%
</TABLE>
<TABLE>
<CAPTION>
SINCE
INCEPTION
AS OF 12/31/96 1 YEAR (05/02/95)
<S> <C> <C>
Load** -1.62% 4.47%
Without Load 1.98% 6.71%
- ---------------------------------------------------------
</TABLE>
* Past performance is no guarantee 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.
** Reflects 3.50% maximum sales charge.
The Qualivest Diversified Bond Fund is managed by John McCune, who has ten years
of experience in financial analysis and portfolio management. Mr. McCune holds
an MBA from UCLA and a bachelor's degree in finance from Brigham Young
University.
WHAT FACTORS AFFECTED YOUR PERFORMANCE?
JOHN MCCUNE: Starting last May, we recognized a trading range within the market.
During 1996, the 30-year Treasury hit 7.20% approximately four times during the
year. It also fell to 6.50% six times during the year. When you look at that
type of trading range, the market can obviously be very volatile. That type of
volatility is typical in a moderately growing economy with no particular trend
in the market. As a result, the market overreacts to news, so you get big
movements in interest rates in a relatively short period of time. In a trading
range with uncertain and volatile interest rate changes, it often doesn't pay to
make extreme duration bets. The way to add value in this type of environment is
to look for yield/spread product. That is the reason why we added commercial
mortgage-backed securities, asset-backed securities, and mortgage pass-through
securities to the portfolio. A recent purchase was a large pool of commercial
mortgages in which we were able to pick up 0.9% over Treasuries with a similar
maturity. This is a AAA security with an average maturity of slightly less than
seven years. A similarly rated corporate bond would only provide a spread of
0.2% over Treasuries.
WHAT IS THE ADVANTAGE OF A COMMERCIAL MORTGAGE COMPARED TO A TRADITIONAL
MORTGAGE?
JOHN MCCUNE: The types of commercial mortgages we have purchased have been large
pools of commercial properties such as apartment buildings, shopping malls,
hotels, etc. The structures we have purchased are much more stable in regard to
price changes due to interest rate movements rather than typical mortgage pools
wherein you can assume more prepayment risk, etc. For example, if interest rates
fall in a typical pool of home mortgages, people tend to refinance and the
duration of your portfolio shortens just at the wrong time. In well-structured
mortgage pools such as the commercial pools we purchased, you can eliminate much
of this type of risk.
WHAT IS YOUR OUTLOOK?
JOHN MCCUNE: We believe that long-term interest rates will remain in a trading
range between 6 3/8 and 7% in 1997. Inflation will remain under control for the
year. As the market continues to trade within this range, many of the yield
products we have purchased such as commercial mortgages, should remain very
desirable. We will also be looking for opportunities to adjust our duration in
anticipation of interest rate changes.
-15-
<PAGE> 17
QUALIVEST MONEY MARKET FUNDS*
- - Qualivest Money Market Fund is comprised primarily of commercial paper--high
quality short-term debt issued by blue chip corporations. As of January 31,
1997, the Money Market Fund offered a seven-day yield of 4.61% and an
effective seven-day yield of 4.71% (Class A shares). As of January 31, 1997,
the Fund's average maturity was 57 days.
- - Qualivest U.S. Treasury Money Market Fund is comprised primarily of short-term
U.S. Treasury securities. As of January 31, 1997, the U.S. Treasury Money
Market Fund offered a seven-day yield of 4.48% and an effective seven-day
yield of 4.58% (Class A shares). As of January 31, 1997, the Fund's average
maturity was 58 days.
- - Qualivest Tax-Free Money Market Fund** is comprised primarily of short-term
tax-free municipal securities. As of January 31, 1997, the Tax-Free Money
Market Fund offered a seven day yield of 2.66% and an effective seven day
yield of 2.70% (Class A shares). As of January 31, 1997, the Fund's average
maturity was 62 days.
The Qualivest Money Market Funds are managed by John Coulter, who has more than
30 years of experience in the investment field. Mr. Coulter holds a bachelor's
degree from Oregon State University.
DESCRIBE THE SHORT-TERM INTEREST RATE ENVIRONMENT DURING THE PAST SIX MONTHS.
JOHN COULTER: There was very little change in rates. The Federal Reserve Board
has kept the Fed Funds rate steady at 5.25% where it has been since January of
1996. In the fall, there was some speculation that the Fed would tighten rates
but that never happened. We were skeptical at the time and maintained our
average maturities during the period, which proved to be the right course of
action. There's been a lot of mixed economic signals and mixed interpretation of
these different signals.
WHAT HAS BEEN YOUR STRATEGY?
JOHN COULTER: As managers of money market funds, our policy has been to maintain
a high-quality portfolio and not chase yield. Our strategy is to hold securities
through a variety of maturities, rather than trying to go long or short,
depending on the outlook at the moment. We don't expect much change in interest
rates in the near future, and the portfolios are positioned in the 50-60 day
range. In the Money Market Fund, the predominant issuers of commercial paper
tend to be in financial services. We hold them because that's what's available
and the rates are good, but we try to diversify into nonfinance names. We're
delighted when we see a name like Warner Lambert because they're not in the
market that often. In the Tax Free Fund, it is still difficult to buy Oregon
issues because they're so scarce. It takes some persistence and we've made some
efforts to let various dealers know that we're particularly looking for Oregon
paper so if they see some come that we get on their list, and when we buy it, we
want to try to hang onto it rather than sell it. Our goal is 20% Oregon paper,
and we're quite close to that.
WHAT IS YOUR OUTLOOK?
JOHN COULTER: It's fairly rare for the Fed not to make changes for an entire
year. Chairman Greenspan likes to tinker, instead of making sweeping moves. Our
thought is that if the employment numbers continue to show strength, he may want
to step in and increase the Fed Funds rate a little bit, to put out a signal to
calm the markets and show that he's not going to tolerate renewed inflation.
* An investment in the Funds is neither insured nor guaranteed by the U.S.
Government. Yields will fluctuate, and there can be no assurance that the
Funds will be able to maintain a stable net asset value of $1.00 per share.
** Some of the income may be subject to the federal alternative minimum tax and
to certain state and local taxes.
-16-
<PAGE> 18
QUALIVEST DYNAMIC ALLOCATION
SERIES OF FUNDS
On May 1, 1996, Qualivest introduced the Qualivest Dynamic Allocation Series of
Funds. The Dynamic Allocation Series is based on the concept of asset allocation
among stocks and bonds. The approach is guided by the premise that investment
performance is determined primarily by the appropriate mixture of asset classes
rather than by the selection of individual securities. The components of the
Dynamic Allocation Series of Funds are the Qualivest Mutual Funds.
- - The Allocated Conservative Fund is designed for investors who want a steady
source of investment income with some capital appreciation and who are most
comfortable with limited investment risk. As of January 31, 1997, the Fund's
portfolio allocation was 65% Qualivest bond funds, 33% Qualivest equity funds
and the balance in cash.* For the six months ended January 31, 1997, the Fund
produced a total return of 8.08% (Class A shares at NAV).
- - The Allocated Balanced Fund is designed for investors who seek the potential
for both capital appreciation and current income and who want greater capital
appreciation potential than the Allocated Conservative Fund. As of January 31,
1997, the Fund's portfolio allocation was 59% Qualivest equity funds, 39%
Qualivest bond funds and the balance in cash.* For the six months ended
January 31, 1997, the Fund produced a total return of 12.76% (Class A shares
at NAV).
- - The Allocated Growth Fund is designed for investors who seek long-term capital
appreciation with some current income and who want greater price stability
than the Allocated Aggressive Fund. As of January 31, 1997, the Fund's
portfolio allocation was 80% Qualivest equity funds, 18% Qualivest bond funds
and the balance in cash.* For the six months ended January 31, 1997, the Fund
produced a total return of 15.54% (Class A shares at NAV).
- - The Allocated Aggressive Fund is designed for investors who seek long-term
capital appreciation and can accept more investment risk in exchange for
higher potential returns. As of January 31, 1997, the Fund's portfolio
allocation was 98% in Qualivest equity funds and the balance in cash.* For the
six months ended January 31, 1997, the Fund produced a total return of 17.20%
(Class A shares at NAV)
* The allocation of the Fund's are subject to change.
Past performance is no guarantee 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.
-17-
<PAGE> 19
QUALIVEST FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
U.S.
MONEY TREASURY TAX-FREE
MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS:
Investments, at amortized cost............................................... $531,728,325 $147,649,657 $42,005,756
Repurchase agreements, at amortized cost..................................... 45,645,104 -- --
------------ ------------ -----------
Total Investments............................................................ 577,373,429 147,649,657 42,005,756
Interest receivable.......................................................... 263,799 862,802 291,001
Prepaid expenses............................................................. 17,152 10,118 615
------------ ------------ -----------
Total Assets.......................................................... 577,654,380 148,522,577 42,297,372
------------ ------------ -----------
LIABILITIES:
Distributions payable........................................................ 2,322,384 585,382 92,958
Payable for investments purchased............................................ -- -- 1,144,053
Accrued expenses and other payables:
Investment advisory fees.................................................. 120,968 -- --
Administration fees....................................................... 62,903 16,784 4,657
Distribution and shareholder service fees (Class A)....................... 86,227 40,557 11,455
Distribution and shareholder service fees (Class Q)....................... -- 5,274 903
Accounting and transfer agent fees........................................ 26,502 20,122 19,512
Legal and audit fees...................................................... 21,379 6,747 2,839
Printing fees............................................................. 16,410 6,025 1,329
Other..................................................................... 17,949 5,063 4,495
------------ ------------ -----------
Total Liabilities..................................................... 2,674,722 685,954 1,282,201
------------ ------------ -----------
NET ASSETS:
Capital...................................................................... 574,979,467 147,836,576 41,015,013
Accumulated undistributed net realized gains from investment transactions.... 191 47 158
------------ ------------ -----------
Net Assets............................................................ $574,979,658 $147,836,623 $41,015,171
============ ============ ===========
Net Assets
Class A................................................................... $245,853,652 $119,997,499 $32,862,881
Class Y................................................................... 147,218,954 1,447,353 4,233,200
Class Q................................................................... 181,907,052 26,391,771 3,919,090
------------ ------------ -----------
Total................................................................. $574,979,658 $147,836,623 $41,015,171
============ ============ ===========
Outstanding units of beneficial interest (shares)
Class A................................................................... 245,855,013 119,997,463 32,862,524
Class Y................................................................... 147,219,322 1,447,353 4,233,267
Class Q................................................................... 181,905,132 26,391,760 3,919,222
------------ ------------ -----------
Total................................................................. 574,979,467 147,836,576 41,015,013
============ ============ ===========
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, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
INTERMEDIATE DIVERSIFIED SMALL COMPANIES
BOND FUND BOND FUND VALUE FUND
------------ ------------ ---------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (Cost $167,026,800, $211,956,714; and $294,727,440,
respectively)............................................................ $167,254,198 $211,147,685 $ 396,133,521
Repurchase agreements (Cost $8,854,898; $11,625,186 and $7,814,914,
respectively)............................................................ 8,854,898 11,625,186 7,814,914
------------ ------------ ------------
Total investments.................................................. 176,109,096 222,772,871 403,948,435
Interest and distributions receivable..................................... 2,335,392 3,267,216 470,758
Receivable for investments sold........................................... -- -- 2,719,315
Receivable for capital shares issued...................................... -- -- 11,983
Unamortized organization costs............................................ -- 468 --
Prepaid expenses.......................................................... 5,440 17,729 16,221
------------ ------------ ------------
Total Assets....................................................... 178,449,928 226,058,284 407,166,712
------------ ------------ ------------
LIABILITIES:
Payable for capital shares redeemed....................................... 39,679 -- 44,839
Payable for investments purchased......................................... 2,010,420 -- 2,283,016
Accrued expenses and other payables:
Investment advisory fees............................................... 65,932 56,657 265,737
Administration fees.................................................... 19,047 24,552 43,182
Distribution and shareholder service fees (Class A).................... 157 93 2,850
Distribution and shareholder service fees (Class C).................... 140 19 1,267
Accounting and transfer agent fees..................................... 20,555 23,193 32,924
Legal and audit fees................................................... 6,590 5,944 8,839
Printing fees.......................................................... 7,962 8,820 13,521
Other.................................................................. 9,483 7,045 12,417
------------ ------------ ------------
Total Liabilities.................................................. 2,179,965 126,323 2,708,592
------------ ------------ ------------
NET ASSETS:
Capital................................................................... 175,364,397 226,418,498 283,150,510
Undistributed net investment income....................................... 391,759 555,995 (62,398)
Net unrealized appreciation (depreciation) from investments............... 227,398 (809,029) 101,406,081
Accumulated distributed net realized gains (losses) from investment
transactions............................................................. 286,409 (233,503) 19,963,927
------------ ------------ ------------
Net Assets......................................................... $176,269,963 $225,931,961 $ 404,458,120
============ ============ ============
Net Assets
Class A................................................................ $ 741,887 $ 424,634 $ 15,247,811
Class Y................................................................ 175,457,266 225,485,427 387,636,743
Class C................................................................ 70,810 21,900 1,573,566
------------ ------------ ------------
Total.............................................................. $176,269,963 $225,931,961 $ 404,458,120
============ ============ ============
Outstanding units of beneficial interest (shares)
Class A................................................................ 74,266 42,750 937,577
Class Y................................................................ 17,397,428 22,271,057 23,824,424
Class C................................................................ 7,142 2,307 98,610
------------ ------------ ------------
Total.............................................................. 17,478,836 22,316,114 24,860,611
============ ============ ============
Net asset value
Class A-redemption price per share..................................... $ 9.99 $ 9.93 $ 16.26
Class Y-offering and redemption price per share........................ $ 10.09 $ 10.12 $ 16.27
Class C-offering price per share*...................................... $ 9.92 $ 9.49 $ 15.96
============ ============ ============
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)...................... $ 10.35 $ 10.29 $ 17.03
============ ============ ============
</TABLE>
- ---------------
* Redemption price per share (Class C) varies by length of time shares are held.
See notes to financial statements.
-19-
<PAGE> 21
QUALIVEST FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
LARGE COMPANIES OPTIMIZED INTERNATIONAL
VALUE FUND STOCK FUND OPPORTUNITIES FUND
--------------- ------------ ------------------
<S> <C> <C> <C>
ASSETS:
Investments, at value(Cost $114,646,939; $214,534,948 and
$163,124,433, respectively)........................................ $ 147,323,729 $276,154,822 $166,996,705
Repurchase agreements (Cost $6,598,375; $1,047,203 and $0,
respectively)...................................................... 6,598,375 1,047,203 --
------------ ------------ ------------
Total Investments................................................... 153,922,104 277,202,025 166,996,705
Foreign currency (Cost $558,112).................................... -- -- 551,759
Interest and distributions receivable............................... 228,256 361,581 218,780
Receivable for investments sold..................................... 964,426 -- --
Receivable for capital shares issued................................ 5,499 4,453 589
Unamortized organization costs...................................... -- 469 821
Prepaid expenses.................................................... 1,771 7,485 13,967
------------ ------------ ------------
Total Assets................................................. 155,122,056 277,576,013 167,782,621
------------ ------------ ------------
LIABILITIES:
Payable for capital shares redeemed................................. 25,389 -- 7,901
Payable for investments purchased................................... 617,824 -- --
Accrued expenses and other payables:
Investment advisory fees......................................... 75,515 68,136 42,495
Administration fees.............................................. 16,909 29,525 18,414
Distribution and shareholder service fees (Class A).............. 1,304 443 364
Distribution and shareholder service fees (Class C).............. 707 136 19
Accounting and transfer agent fees............................... 28,492 24,605 28,598
Legal and audit fees............................................. 4,584 11,371 5,755
Custody fees..................................................... 3,900 6,813 28,352
Printing fees.................................................... 5,568 9,810 6,801
Other............................................................ 1,695 1,713 1,106
------------ ------------ ------------
Total Liabilities............................................ 781,887 152,552 139,805
------------ ------------ ------------
NET ASSETS:
Capital............................................................. 118,096,966 210,306,808 164,529,503
Undistributed net investment income................................. 116,132 223,888 (134,187)
Net unrealized appreciation from investments and translation of
assets and liabilities in foreign currencies....................... 32,676,790 61,619,874 3,861,758
Accumulated undistributed net realized gains (losses) from
investment transactions and foreign currency transactions.......... 3,450,281 5,272,891 (614,258)
------------ ------------ ------------
Net Assets................................................... $ 154,340,169 $277,423,461 $167,642,816
============ ============ ============
Net Assets
Class A.......................................................... $ 6,393,697 $ 2,272,610 $ 1,689,081
Class Y.......................................................... 147,070,492 274,981,780 165,931,778
Class C.......................................................... 875,980 169,071 21,957
------------ ------------ ------------
Total........................................................ $ 154,340,169 $277,423,461 $167,642,816
============ ============ ============
Outstanding units of beneficial interest (shares)
Class A.......................................................... 469,565 161,660 159,786
Class Y.......................................................... 10,743,429 19,535,194 15,632,132
Class C.......................................................... 65,378 12,072 2,080
------------ ------------ ------------
Total........................................................ 11,278,372 19,708,926 15,793,998
============ ============ ============
Net asset value
Class A -- redemption price per share............................ $ 13.62 $ 14.06 $ 10.57
Class Y -- offering and redemption price per share............... $ 13.69 $ 14.08 $ 10.61
Class C -- offering price per share *............................ $ 13.40 $ 14.01 $ 10.55
============ ============ ============
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).......... $ 14.26 $ 14.72 $ 11.07
============ ============ ============
</TABLE>
- ---------------
*Redemption price per share (Class C) varies by length of time shares are held.
See notes to financial statements.
-20-
<PAGE> 22
QUALIVEST FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
ALLOCATED ALLOCATED
CONSERVATIVE BALANCED ALLOCATED ALLOCATED
FUND FUND GROWTH FUND AGGRESSIVE FUND
------------ ----------- ----------- ---------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (Cost $9,930,380; $68,495,452;
$18,160,467 and $20,079,364, respectively)........... $ 10,176,976 $71,002,511 $18,961,797 $21,004,064
Distributions receivable............................... 1,451 16,241 2,667 2,988
Receivable from brokers for investments sold........... 31,964 -- -- --
Receivable for capital shares issued................... -- 110,681 144,411 90,852
Prepaid expenses....................................... 3,144 8,145 2,039 1,675
----------- ----------- ----------- -----------
Total Assets................................... 10,213,535 71,137,578 19,110,914 21,099,579
----------- ----------- ----------- -----------
LIABILITIES:
Accrued expenses and other payables:
Investment advisory fees........................... 420 2,925 759 756
Administration fees................................ 589 4,095 1,063 1,058
Distribution and shareholder service fees (Class
A)............................................... 209 713 994 511
Accounting and transfer agent fees................. 72 9,208 415 392
Legal and audit fees............................... 241 968 221 186
Printing fees...................................... 291 -- 262 332
Other.............................................. 215 497 237 271
----------- ----------- ----------- -----------
Total Liabilities.............................. 2,037 18,406 3,951 3,506
----------- ----------- ----------- -----------
NET ASSETS:
Capital................................................ 9,772,814 66,612,278 17,705,279 19,596,330
Undistributed net investment income.................... (169) (782) 3,930 (2,139)
Net unrealized appreciation from investments........... 246,596 2,507,059 801,330 924,700
Accumulated undistributed net realized gains from
investment transactions.............................. 192,257 2,000,617 596,424 577,182
----------- ----------- ----------- -----------
Net Assets..................................... $ 10,211,498 $71,119,172 $19,106,963 $21,096,073
=========== =========== =========== ===========
Net Assets
Class A............................................ $ 1,151,009 $ 3,862,732 $5,436,468 $ 3,051,214
Class Y............................................ 9,060,489 67,256,440 13,670,495 18,044,859
----------- ----------- ----------- -----------
Total.......................................... $ 10,211,498 $71,119,172 $19,106,963 $21,096,073
=========== =========== =========== ===========
Outstanding units of beneficial interest (shares)
Class A............................................ 109,595 357,552 488,291 271,580
Class Y............................................ 860,721 6,280,497 1,242,016 1,612,007
----------- ----------- ----------- -----------
Total.......................................... 970,316 6,638,049 1,730,307 1,883,587
=========== =========== =========== ===========
Net asset value
Class A-redemption price per share................. $ 10.50 $ 10.80 $ 11.13 $ 11.24
Class Y-offering and redemption price per share.... $ 10.53 $ 10.71 $ 11.01 $ 11.19
=========== =========== =========== ===========
Maximum Sales Charge (Class A)......................... 4.00% 4.00% 4.00% 4.00%
=========== =========== =========== ===========
Maximum Offering Price (100%/(100%-Maximum Sales
Charge) of net asset value adjusted to nearest cent)
per share (Class A).................................. $ 10.94 $ 11.25 $ 11.59 $ 11.71
=========== =========== =========== ===========
</TABLE>
See notes to financial statements.
-21-
<PAGE> 23
QUALIVEST FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
U.S.
MONEY TREASURY TAX-FREE
MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
----------- ------------ ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income.......................................................... $14,402,290 $3,868,157 $688,152
----------- ---------- --------
Total Income..................................................... 14,402,290 3,868,157 688,152
----------- ---------- --------
EXPENSES:
Investment advisory fees................................................. 921,569 260,350 68,591
Administration fees...................................................... 341,853 96,570 25,430
Distribution and shareholder service fees (Class A)...................... 497,114 222,072 65,509
Distribution and shareholder service fees (Class Q)...................... 191,331 44,856 5,539
Custodian fees........................................................... 78,883 22,283 5,869
Accounting and transfer agent fees....................................... 99,731 57,062 54,930
Legal and audit fees..................................................... 34,848 9,008 3,396
Trustees' fees and expenses.............................................. 11,793 3,359 968
Registration and filing fees............................................. 28,964 6,528 688
Printing costs........................................................... 20,456 3,533 533
Other.................................................................... 6,623 2,321 742
----------- ---------- --------
Total expenses before waivers.................................... 2,233,165 727,942 232,195
Less waivers..................................................... (455,488) (269,375) (68,591)
----------- ---------- --------
Net Expenses..................................................... 1,777,677 458,567 163,604
----------- ---------- --------
Net Investment Income.................................................... 12,624,613 3,409,590 524,548
----------- ---------- --------
REALIZED GAINS FROM INVESTMENTS:
Net realized gains from investment transactions.......................... -- 47 (1,160)
----------- ---------- --------
Change in net assets resulting from operations........................... $12,624,613 $3,409,637 $523,388
=========== ========== ========
</TABLE>
See notes to financial statements.
-22-
<PAGE> 24
QUALIVEST FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
INTERMEDIATE DIVERSIFIED SMALL COMPANIES
BOND FUND BOND FUND VALUE FUND
------------ ---------- ---------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income.......................................................... $5,447,836 $6,643,436 $ 716,026
Dividend income.......................................................... -- -- 1,577,225
---------- ---------- -----------
Total Income..................................................... 5,447,836 6,643,436 2,293,251
---------- ---------- -----------
EXPENSES:
Investment advisory fees................................................. 514,161 623,310 1,426,402
Administration fees...................................................... 111,188 134,693 231,789
Distribution and shareholder service fees (Class A)...................... 858 511 14,680
Distribution and shareholder service fees (Class C)...................... 660 122 6,744
Custodian fees........................................................... 25,656 31,081 53,486
Accounting and transfer agent fees....................................... 64,579 71,166 117,309
Legal and audit fees..................................................... 12,236 14,696 30,352
Trustees' fees and expenses.............................................. 4,118 4,715 8,250
Registration and filing fees............................................. 4,280 14,964 21,512
Printing costs........................................................... 3,648 5,469 9,912
Other.................................................................... 2,692 3,428 4,367
---------- ---------- -----------
Total expenses before waivers.................................... 744,076 904,155 1,924,803
Less waivers..................................................... (129,280) (312,485) --
---------- ---------- -----------
Net Expenses..................................................... 614,796 591,670 1,924,803
Net Investment Income.................................................... 4,833,040 6,051,766 368,448
---------- ---------- -----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment transactions................. 289,346 (238,179) 26,602,979
Net change in unrealized appreciation from investments................... 1,341,288 3,009,910 64,722,641
---------- ---------- -----------
Net realized/unrealized gains from investments........................... 1,630,634 2,771,731 91,325,620
---------- ---------- -----------
Change in net assets resulting from operations........................... $6,463,674 $8,823,497 $91,694,068
========== ========== ===========
</TABLE>
See notes to financial statements.
-23-
<PAGE> 25
QUALIVEST FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
INTERNATIONAL
LARGE COMPANIES OPTIMIZED OPPORTUNITIES
VALUE FUND STOCK FUND FUND
--------------- ----------- -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income........................................................ $ 367,638 $ 54,206 $ --
Dividend income........................................................ 1,350,984 2,568,695 1,232,573
Foreign tax withholding................................................ -- -- (151,334)
---------- ---------- -----------
Total Income................................................... 1,718,622 2,622,901 1,081,239
---------- ---------- -----------
EXPENSES:
Investment advisory fees............................................... 533,958 622,512 478,098
Administration fees.................................................... 92,852 161,436 103,366
Distribution and shareholder service fees (Class A).................... 7,173 2,218 2,289
Distribution and shareholder service fees (Class C).................... 3,650 653 99
Custodian fees......................................................... 21,423 37,254 79,296
Accounting and transfer agent fees..................................... 76,486 86,689 121,109
Legal and audit fees................................................... 10,928 17,424 12,756
Organization costs..................................................... -- 988 1,104
Trustees' fees and expenses............................................ 3,195 5,794 3,680
Registration and filing fees........................................... 9,364 15,272 18,608
Printing costs......................................................... 3,756 6,903 29,225
Other.................................................................. 1,841 3,312 2,025
---------- ---------- -----------
Total expenses before waivers.................................. 764,626 960,455 851,655
Less waivers................................................... (107,936) (249,965) (239,559)
---------- ---------- -----------
Net Expenses................................................... 656,690 710,490 612,096
Net Investment Income.................................................. 1,061,932 1,912,411 469,143
---------- ---------- -----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment transactions............... 6,006,268 12,864,683 (455,009)
Net realized losses from foreign currency transactions................. -- -- (37,708)
Net change in unrealized appreciation from investments................. 21,207,888 38,375,343 164,596
Net change in unrealized depreciation from foreign currency
transactions......................................................... -- -- (13,833)
---------- ---------- -----------
Net realized/unrealized gains from investments......................... 27,214,156 51,240,026 (341,954)
---------- ---------- -----------
Change in net assets resulting from operations......................... $28,276,088 $53,152,437 $ 127,189
========== ========== ===========
</TABLE>
See notes to financial statements.
-24-
<PAGE> 26
QUALIVEST FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
ALLOCATED ALLOCATED ALLOCATED ALLOCATED
CONSERVATIVE BALANCED GROWTH AGGRESSIVE
FUND FUND FUND FUND
------------ ---------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Distribution income.................................... $193,958 $1,026,142 $ 166,288 $ 80,909
-------- ---------- ---------- ----------
EXPENSES:
Investment advisory fees............................... 2,255 15,574 3,602 2,874
Administration fees.................................... 3,157 21,816 5,043 4,023
Distribution and shareholder service fees (Class A).... 556 1,887 2,549 1,228
Custodian fees......................................... 225 1,558 360 287
Accounting and transfer agent fees..................... 1,353 18,982 2,160 1,728
Legal and audit fees................................... 6,472 6,388 5,352 5,236
Trustees' fees and expenses............................ 68 1,384 116 116
Registration and filing fees........................... 3,898 9,472 4,432 4,036
Printing costs......................................... 129 2,381 313 243
Other.................................................. 50 368 118 116
-------- ---------- ---------- ----------
Total expenses before waivers................. 18,163 79,810 24,045 19,887
-------- ---------- ---------- ----------
Net investment income.................................. 175,795 946,332 142,243 61,022
-------- ---------- ---------- ----------
REALIZED/UNREALIZED GAINS
FROM INVESTMENTS:
Net realized gains from investment transactions........ 195,759 2,012,767 608,754 582,121
Net change in unrealized appreciation from
investments.......................................... 332,006 3,627,113 1,155,310 1,214,195
-------- ---------- ---------- ----------
Net realized/unrealized gains from investments......... 527,765 5,639,880 1,764,064 1,796,316
-------- ---------- ---------- ----------
Change in net assets resulting from operations......... $703,560 $6,586,212 $1,906,307 $1,857,338
======== ========== ========== ==========
</TABLE>
- ------------------
(a) Period from commencement of operations.
See notes to financial statements.
-25-
<PAGE> 27
QUALIVEST FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
U.S. TREASURY TAX-FREE
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
--------------------------------- ----------------------------- ---------------------------
FOR THE FOR THE FOR THE
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1997 1996 1997 1996 1997 1996
--------------- --------------- ------------- ------------- ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income.... $ 12,624,613 $ 19,376,010 $ 3,409,590 $ 5,282,724 $ 524,548 $ 1,042,039
Net realized gains
(losses) from
investment
transactions........... -- -- 47 -- (1,160) 1,142
--------------- --------------- ------------- ------------- ------------ ------------
Change in net assets
resulting from
operations................. 12,624,613 19,376,010 3,409,637 5,282,724 523,388 1,043,181
--------------- --------------- ------------- ------------- ------------ ------------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment
income................. (5,703,281) (10,656,517) (2,517,774) (3,929,231) (433,113) (968,355)
DISTRIBUTIONS TO CLASS Y
SHAREHOLDERS:
From net investment
income................. (3,107,183) (4,081,900) (41,961) (3,788) (29,560) (10,400)
DISTRIBUTIONS TO CLASS Q
SHAREHOLDERS:
From net investment
income................. (3,814,149) (4,637,593) (849,855) (1,349,705) (61,875) (63,284)
--------------- --------------- ------------- ------------- ------------ ------------
Change in net assets from
shareholder
distributions.............. (12,624,613) (19,376,010) (3,409,590) (5,282,724) (524,548) (1,042,039)
--------------- --------------- ------------- ------------- ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................. 1,311,739,826 1,928,774,210 388,209,919 342,623,902 45,425,534 95,124,837
Dividends reinvested..... 9,197,037 15,063,971 3,278,321 5,151,868 475,195 1,052,542
Cost of shares
redeemed............... (1,192,601,720) (1,835,702,517) (366,956,050) (307,567,073) (38,922,542) (96,972,871)
--------------- --------------- ------------- ------------- ------------ ------------
Change in net assets from
share transactions......... 128,335,143 108,135,664 24,532,190 40,208,697 6,978,187 (795,492)
--------------- --------------- ------------- ------------- ------------ ------------
Change in net assets......... 128,335,143 108,135,664 24,532,237 40,208,697 6,977,027 (794,350)
NET ASSETS:
Beginning of period...... 446,644,515 338,508,851 123,304,386 83,095,689 34,038,144 34,832,494
--------------- --------------- ------------- ------------- ------------ ------------
End of period............ $ 574,979,658 $ 446,644,515 $ 147,836,623 $ 123,304,386 $ 41,015,171 $ 34,038,144
=============== =============== ============= ============= ============ ============
SHARE TRANSACTIONS:
Issued................... 1,311,739,826 1,928,774,210 388,209,919 342,623,902 45,425,534 95,124,837
Reinvested............... 9,197,037 15,063,971 3,278,321 5,151,868 475,195 1,052,542
Redeemed................. (1,192,601,720) (1,835,702,517) (366,956,050) (307,567,073) (38,922,542) (96,972,871)
--------------- --------------- ------------- ------------- ------------ ------------
Change in shares............. 128,335,143 108,135,664 24,532,190 40,208,697 6,978,187 (795,492)
=============== =============== ============= ============= ============ ============
</TABLE>
See notes to financial statements.
-26-
<PAGE> 28
QUALIVEST FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERMEDIATE DIVERSIFIED SMALL COMPANIES
BOND FUND BOND FUND VALUE FUND
--------------------------- --------------------------- ---------------------------
FOR THE FOR THE FOR THE
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1997 1996 1997 1996 1997 1996
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income........... $ 4,833,040 $ 8,337,086 $ 6,051,766 $ 7,902,356 $ 368,448 $ 1,062,914
Net realized gains (losses) from
investment transactions....... 289,346 952,023 (238,179) 1,877,945 26,602,979 34,451,881
Net change in unrealized
appreciation (depreciation)
from investments.............. 1,341,288 (3,464,045) 3,009,910 (5,431,677) 64,722,641 (2,468,172)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets
resulting from operations......... 6,463,674 5,825,064 8,823,497 4,348,624 91,694,068 33,046,623
------------ ------------ ------------ ------------ ------------ ------------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment income...... (18,512) (28,845) (11,458) (6,473) (4,297) (12,944)
In excess of net investment
income........................ -- -- -- -- -- (348)
From net realized gains from
investment transactions....... (1,769) (120) (2,976) (1,356) (1,213,322) (266,703)
DISTRIBUTIONS TO CLASS Y
SHAREHOLDERS:
From net investment income...... (4,802,892) (8,226,339) (5,947,713) (7,654,293) (601,183) (1,049,662)
In excess of net investment
income........................ -- -- -- -- -- (28,247)
From net realized gains from
investment transactions....... (434,375) (33,732) (1,403,908) (1,723,809) (33,660,875) (17,878,500)
DISTRIBUTIONS TO CLASS C
SHAREHOLDERS:
From net investment income...... (3,270) (5,766) (530) (73) -- (317)
From net realized gains from
investment transactions....... (280) (34) (155) -- (133,253) (52,906)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets from
shareholder distributions......... (5,261,098) (8,294,836) (7,366,740) (9,386,004) (35,612,930) (19,289,627)
------------ ------------ ------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued..... 44,282,769 64,422,296 43,563,634 91,547,557 115,820,247 126,977,542
Dividends reinvested............ 4,509,208 8,041,886 5,483,146 9,032,688 33,364,309 19,203,383
Cost of shares redeemed......... (32,594,458) (53,037,282) (8,149,159) (11,311,827) (108,847,353) (63,092,760)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets
from share transactions........... 16,197,519 19,426,900 40,897,621 89,268,418 40,337,203 (83,088,165)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets................ 17,400,095 16,957,128 42,354,378 84,231,038 96,418,341 96,845,161
NET ASSETS:
Beginning of period............. 158,869,868 141,912,740 183,577,583 99,346,545 308,039,779 211,194,618
------------ ------------ ------------ ------------ ------------ ------------
End of period................... $176,269,963 $158,869,868 $225,931,961 $183,577,583 $404,458,120 $308,039,779
============ ============ ============ ============ ============ ============
SHARE TRANSACTIONS:
Issued.......................... 4,389,128 6,326,763 4,295,075 8,900,490 7,694,123 9,165,038
Reinvested...................... 447,523 791,062 540,371 874,967 2,317,007 1,494,582
Redeemed........................ (3,229,983) (5,220,893) (803,261) (1,108,034) (7,218,256) (4,525,438)
------------ ------------ ------------ ------------ ------------ ------------
Change in shares.................... 1,606,668 1,896,932 4,032,185 8,667,423 2,792,874 6,134,182
============ ============ ============ ============ ============ ============
</TABLE>
See notes to financial statements.
-27-
<PAGE> 29
QUALIVEST FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LARGE COMPANIES OPTIMIZED INTERNATIONAL
VALUE FUND STOCK FUND OPPORTUNITIES FUND
--------------------------- --------------------------- ---------------------------
FOR THE FOR THE FOR THE
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1997 1996 1997 1996 1997 1996
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income........... $ 1,061,932 $ 1,880,892 $ 1,912,411 $ 3,361,625 $ 469,143 $ 1,276,687
Net realized gains (losses) from
investment transactions....... 6,006,268 8,958,325 12,864,683 8,462,270 (455,009) 315,363
Net realized losses from foreign
currency transactions......... -- -- -- -- (37,708) (231,025)
Net change in unrealized
appreciation (depreciation)
from investments.............. 21,207,888 (2,960,072) 38,375,343 11,602,223 164,596 1,148,968
Net change in unrealized
appreciation (depreciation)
from foreign
currency...................... -- -- -- -- (13,833) 3,418
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets resulting from
operations........................ 28,276,088 7,879,145 53,152,437 23,426,118 127,189 2,513,411
------------ ------------ ------------ ------------ ------------ ------------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment income...... (46,475) (35,005) (14,299) (4,963) (11,326) (8,763)
From net realized gains from
investment transactions....... (340,861) (129,974) (101,679) (4,341) (4,870) (38)
DISTRIBUTIONS TO CLASS Y
SHAREHOLDERS:
From net investment income...... (1,314,477) (1,756,110) (2,404,342) (3,150,517) (1,135,363) (542,120)
From net realized gains from
investment transactions....... (8,239,081) (7,767,356) (13,829,821) (2,699,756) (430,341) (1,605)
DISTRIBUTIONS TO CLASS C
SHAREHOLDERS:
From net investment income...... (2,836) (5,161) (491) (660) (42) (20)
From net realized gains from
investment transactions....... (43,128) (27,868) (7,082) (860) (50) --
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets from
shareholder distributions......... (9,986,858) (9,721,474) (16,357,714) (5,861,097) (1,581,992) (552,546)
------------ ------------ ------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued..... 39,440,961 51,611,609 22,873,575 70,019,637 31,298,834 93,375,001
Dividends reinvested............ 7,436,204 9,546,835 14,884,494 5,767,679 1,161,073 468,557
Cost of shares redeemed......... (29,048,400) (40,548,298) (17,452,219) (21,866,911) (7,844,830) (11,414,929)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets from share
transactions...................... 17,828,765 20,610,146 20,305,850 53,920,405 24,615,077 82,428,629
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets................ 36,117,995 18,767,817 57,100,573 71,485,426 23,160,274 84,389,494
NET ASSETS:
Beginning of period............. 118,222,174 99,454,357 220,322,888 148,837,462 144,482,542 60,093,048
------------ ------------ ------------ ------------ ------------ ------------
End of period................... $154,340,169 $118,222,174 $277,423,461 $220,322,888 $167,642,816 $144,482,542
============ ============ ============ ============ ============ ============
SHARE TRANSACTIONS:
Issued.......................... 3,070,753 4,166,612 1,731,627 5,892,190 2,886,828 8,816,810
Reinvested...................... 585,571 839,075 1,133,456 492,903 105,837 44,496
Redeemed........................ (2,247,255) (3,265,999) (1,331,321) (1,803,663) (720,926) (1,073,107)
------------ ------------ ------------ ------------ ------------ ------------
Change in shares.................... 1,409,069 1,739,688 1,533,762 4,581,430 2,271,739 7,788,199
============ ============ ============ ============ ============ ============
</TABLE>
See notes to financial statements.
-28-
<PAGE> 30
QUALIVEST FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
ALLOCATED ALLOCATED
CONSERVATIVE FUND BALANCED FUND
------------------------------- -------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS PERIOD FROM SIX MONTHS PERIOD FROM
ENDED MAY 1, 1996 ENDED MAY 1, 1996
JANUARY 31, THROUGH JANUARY 31, THROUGH
1997 JULY 31, 1996(A) 1997 JULY 31, 1996(A)
----------- ---------------- ----------- ----------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income............................. $ 175,795 $ 58,647 $ 946,332 $ 217,386
Net realized gains (losses) from investment
transactions.................................... 195,759 (47) 2,012,767 6,167
Net change in unrealized appreciation
(depreciation) from investments................. 332,006 (85,410) 3,627,113 (1,120,054)
----------- ---------- ----------- -----------
Change in net assets resulting from operations........ 703,560 (26,810) 6,586,212 (896,501)
----------- ---------- ----------- -----------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income........................ (10,757) -- (26,309) --
From net realized gains on investments............ (272) -- (791) --
DISTRIBUTIONS TO CLASS Y SHAREHOLDERS:
From net investment income........................ (205,147) (18,707) (1,050,699) (87,492)
From net realized gains on investments............ (3,183) -- (17,526) --
----------- ---------- ----------- -----------
Change in net assets from shareholder distributions... (219,359) (18,707) (1,095,325) (87,492)
----------- ---------- ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares issued....................... 3,203,724 7,728,026 31,413,740 39,938,939
Dividends reinvested.............................. 63,389 -- 1,011,053 77,746
Cost of shares redeemed........................... (1,112,411) (109,914) (5,079,144) (750,056)
----------- ---------- ----------- -----------
Change in net assets from share transactions.......... 2,154,702 7,618,112 27,345,649 39,266,629
----------- ---------- ----------- -----------
Change in net assets.................................. 2,638,903 7,572,595 32,836,536 38,282,636
NET ASSETS:
Beginning of period............................... 7,572,595 -- 38,282,636 --
----------- ---------- ----------- -----------
End of period..................................... $10,211,498 $7,572,595 $71,119,172 $ 38,282,636
=========== ========== =========== ===========
SHARE TRANSACTIONS:
Issued............................................ 310,685 771,456 3,101,735 3,995,654
Reinvested........................................ 6,093 -- 97,712 7,698
Redeemed.......................................... (106,820) (11,098) (488,290) (76,460)
----------- ---------- ----------- -----------
Change in shares...................................... 209,958 760,358 2,711,157 3,926,892
=========== ========== =========== ===========
</TABLE>
- ---------------
(a) Period from commencement of operations.
See notes to financial statements.
-29-
<PAGE> 31
QUALIVEST FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
ALLOCATED ALLOCATED
GROWTH FUND AGRESSIVE FUND
------------------------------- -------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS PERIOD FROM SIX MONTHS PERIOD FROM
ENDED MAY 1, 1996 ENDED MAY 1, 1996
JANUARY 31, THROUGH JANUARY 31, THROUGH
1997 JULY 31, 1996(A) 1997 JULY 31, 1996(A)
----------- ---------------- ----------- ----------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income............................. $ 142,243 $ 30,292 $ 61,022 $ 10,360
Net realized gains (losses) from investment
transactions.................................... 608,754 (1,108) 582,121 (4,939)
Net change in unrealized appreciation
(depreciation) from investments................. 1,155,310 (353,980) 1,214,195 (289,495)
----------- ----------- ----------- -----------
Change in net assets resulting from operations........ 1,906,307 (324,796) 1,857,338 (284,074)
----------- ----------- ----------- -----------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income........................ (18,432) -- (4,129) (4)
From net realized gains on investments............ (2,510) -- -- --
DISTRIBUTIONS TO CLASS Y SHAREHOLDERS:
From net investment income........................ (133,400) (16,773) (59,032) (10,356)
From net realized gains on investments............ (8,712) -- -- (1,452)
----------- ----------- ----------- -----------
Change in net assets from shareholder distributions... (163,054) (16,773) (63,161) (11,812)
----------- ----------- ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares issued....................... 7,446,881 11,303,551 13,019,063 9,805,661
Dividends reinvested.............................. 89,440 1,099 56,339 10,396
Cost of shares redeemed........................... (973,233) (162,459) (1,981,930) (1,311,747)
----------- ----------- ----------- -----------
Change in net assets from share transactions.......... 6,563,088 11,142,191 11,093,472 8,504,310
----------- ----------- ----------- -----------
Change in net assets.................................. 8,306,341 10,800,622 12,887,649 8,208,424
NET ASSETS:
Beginning of period............................... 10,800,622 -- 8,208,424 --
----------- ----------- ----------- -----------
End of period..................................... $19,106,963 $ 10,800,622 $21,096,073 $ 8,208,424
=========== =========== =========== ===========
SHARE TRANSACTIONS:
Issued............................................ 702,663 1,128,552 1,209,583 985,152
Reinvested........................................ 8,477 107 5,392 1,012
Redeemed.......................................... (92,524) (16,968) (186,072) (131,480)
----------- ----------- ----------- -----------
Change in shares...................................... 618,616 1,111,691 1,028,903 854,684
=========== =========== =========== ===========
</TABLE>
- ---------------
(a) Period from commencement of operations.
See notes to financial statements.
-30-
<PAGE> 32
QUALIVEST FUNDS
MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMERCIAL PAPER (86.0%):
Automotive (3.4%):
$ 5,000,000 Ford Motor Credit Co.,
5.32%, 2/27/97........... $ 4,980,789
5,000,000 Ford Motor Credit Co.,
5.33%, 3/28/97........... 4,959,285
5,000,000 Ford Motor Credit Co.,
5.30%, 5/28/97........... 4,914,611
5,000,000 Ford Motor Credit Co.,
5.31%, 5/30/97........... 4,912,975
------------
19,767,660
------------
Banking (6.8%):
4,800,000 Banc One Corp., 5.30%,
2/28/97.................. 4,780,920
5,000,000 Republic New York Corp.,
5.34%, 6/13/97........... 4,902,100
5,000,000 Republic New York Corp.,
5.33%, 7/23/97........... 4,872,672
5,000,000 Toronto-Dominion Holdings,
5.36%, 3/27/97........... 4,959,800
5,000,000 Toronto-Dominion Holdings,
5.27%, 4/9/97............ 4,950,960
5,000,000 Toronto-Dominion Holdings,
5.30%, 4/11/97........... 4,949,208
5,000,000 Toronto-Dominion Holdings,
5.33%, 4/18/97........... 4,943,739
5,000,000 Toronto-Dominion Holdings,
5.32%, 5/2/97............ 4,933,500
------------
39,292,899
------------
Beverages (0.9%):
5,000,000 Coca-Cola Co., 5.28%,
4/28/97.................. 4,936,933
------------
Building Products (3.5%):
5,000,000 Guardian Industries Corp.,
5.31%, 2/5/97............ 4,997,050
5,000,000 Guardian Industries Corp.,
5.30%, 2/26/97........... 4,981,597
5,000,000 Guardian Industries Corp.,
5.28%, 3/4/97............ 4,977,267
5,000,000 Guardian Industries Corp.,
5.32%, 4/30/97........... 4,934,978
------------
19,890,892
------------
Chemicals (6.0%):
5,000,000 Air Products & Chemicals,
Inc., 5.30%, 2/27/97..... 4,980,861
5,000,000 E.I. duPont deNemours Co.,
5.25%, 3/6/97............ 4,975,937
5,000,000 E.I. duPont deNemours Co.,
5.25%, 4/3/97............ 4,955,521
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------------------------- ------------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Chemicals, Continued:
$ 5,000,000 Monsanto Co., 5.31%,
4/29/97.................. $ 4,935,837
4,700,000 Monsanto Co., 5.32%,
5/6/97................... 4,634,712
5,000,000 Monsanto Co., 5.32%,
5/8/97................... 4,929,067
5,000,000 Monsanto Co., 5.33%,
6/11/97.................. 4,903,764
------------
34,315,699
------------
Computers (3.5%):
5,000,000 I.B.M. Corp., 5.30%,
2/11/97.................. 4,992,639
5,000,000 I.B.M. Corp., 5.31%,
2/21/97.................. 4,985,250
5,000,000 I.B.M. Corp., 5.27%,
3/17/97.................. 4,967,794
5,000,000 I.B.M. Corp., 5.30%,
3/31/97.................. 4,957,306
------------
19,902,989
------------
Electric Utility (2.6%):
5,000,000 PacifiCorp, 5.29%,
3/3/97................... 4,977,958
5,000,000 PacifiCorp, 5.30%,
4/2/97................... 4,955,833
5,000,000 PacifiCorp, 5.31%,
6/3/97................... 4,910,025
------------
14,843,816
------------
Financial Services (20.6%):
5,000,000 American Express Credit
Corp., 5.30%, 2/12/97.... 4,991,903
5,000,000 American Express Credit
Corp., 5.32%, 3/14/97.... 4,969,706
5,000,000 American Express Credit
Corp., 5.28%, 4/21/97.... 4,942,067
5,000,000 American General Finance
Corp., 5.32%, 4/7/97..... 4,951,972
5,000,000 Associates Corp. of North
America, 5.32%,
2/20/97.................. 4,985,961
5,000,000 Associates Corp. of North
America, 5.31%,
3/24/97.................. 4,962,388
5,000,000 Associates Corp. of North
America, 5.30%, 4/4/97... 4,954,361
4,000,000 Cargill Inc., 5.24%,
2/3/97................... 3,998,796
5,000,000 Cargill Inc., 5.30%,
4/10/97.................. 4,949,944
5,000,000 Cargill Inc., 5.30%,
5/7/97................... 4,930,069
5,000,000 Cargill Inc., 5.30%,
5/14/97.................. 4,924,917
5,000,000 Cargill Inc., 5.36%,
7/21/97.................. 4,873,444
5,000,000 General Electric Capital
Corp., 5.53%, 2/10/97.... 4,993,083
5,000,000 General Electric Capital
Corp., 5.46%, 2/14/97.... 4,990,142
5,000,000 General Electric Capital
Corp., 5.28%, 3/21/97.... 4,964,800
</TABLE>
Continued
-31-
<PAGE> 33
QUALIVEST FUNDS
MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------------------------- ------------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Financial Services, Continued:
$ 5,000,000 General Electric Capital
Corp., 5.29%, 4/16/97.... $ 4,945,631
5,000,000 General Electric Capital
Corp., 5.35%, 6/30/97.... 4,889,285
5,000,000 National Rural Utilities
C.F.C., 5.50%, 2/14/97... 4,990,069
5,000,000 National Rural Utilities
C.F.C., 5.28%, 2/19/97... 4,986,800
5,000,000 National Rural Utilities
C.F.C., 5.30%, 3/11/97... 4,972,028
4,000,000 Transamerica Finance Corp.,
5.58%, 2/7/97............ 3,996,280
5,000,000 Transamerica Finance Corp.,
5.29%, 2/24/97........... 4,983,101
5,000,000 Transamerica Finance Corp.,
5.29%, 4/16/97........... 4,945,631
2,000,000 Transamerica Finance Corp.,
5.32%, 4/24/97........... 1,975,764
5,000,000 Transamerica Finance Corp.,
5.34%, 6/24/97........... 4,893,942
------------
118,962,084
------------
Food Products (1.7%):
5,000,000 Kellogg Co., 5.38%,
2/5/97................... 4,997,011
5,000,000 Nestle Capital Corp.,
5.47%, 2/18/97........... 4,987,085
------------
9,984,096
------------
Insurance (12.0%):
5,000,000 Marsh & McLennan Companies,
Inc., 5.34%, 3/20/97..... 4,965,142
5,000,000 Prudential Funding Corp.,
5.29%, 4/8/97............ 4,951,508
5,000,000 Prudential Funding Corp.,
5.31%, 4/22/97........... 4,941,000
5,000,000 Prudential Funding Corp.,
5.35%, 6/18/97........... 4,898,201
5,000,000 SAFECO Credit Co., 5.30%,
3/4/97................... 4,977,181
5,000,000 SAFECO Credit Co., 5.36%,
4/1/97................... 4,956,078
5,000,000 SAFECO Credit Co., 5.35%,
4/15/97.................. 4,945,757
5,000,000 SAFECO Credit Co., 5.31%,
4/17/97.................. 4,944,688
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------------------------- ------------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Insurance, Continued:
$ 5,000,000 SAFECO Credit Co., 5.32%,
5/1/97................... $ 4,934,239
5,000,000 USAA Capital Corp., 5.28%,
2/4/97................... 4,997,800
5,000,000 USAA Capital Corp., 5.31%,
2/25/97.................. 4,982,300
5,000,000 USAA Capital Corp., 5.33%,
5/21/97.................. 4,919,310
5,000,000 USAA Capital Corp., 5.34%,
6/17/97.................. 4,899,133
5,000,000 USAA Capital Corp., 5.34%,
6/23/97.................. 4,894,683
------------
69,207,020
------------
Leasing (4.3%):
5,000,000 International Lease Finance
Corp., 5.40%, 2/28/97.... 4,979,750
5,000,000 International Lease Finance
Corp., 5.30%, 3/10/97.... 4,972,764
5,000,000 International Lease Finance
Corp., 5.30%, 4/11/97.... 4,949,208
5,000,000 International Lease Finance
Corp., 5.32%, 5/22/97.... 4,918,722
5,000,000 International Lease Finance
Corp., 5.34%, 6/26/97.... 4,892,458
------------
24,712,902
------------
Miscellaneous (4.3%):
5,000,000 University of California
Regents, 5.33%,
2/18/97.................. 4,987,415
5,000,000 University of California
Regents, 5.30%,
3/19/97.................. 4,966,139
5,000,000 University of California
Regents, 5.36%,
3/27/97.................. 4,959,800
5,000,000 University of California
Regents, 5.36%,
4/23/97.................. 4,939,700
5,000,000 University of California
Regents, 5.43%,
4/25/97.................. 4,938,557
------------
24,791,611
------------
Office Equipment & Services (0.9%):
5,000,000 Pitney Bowes Credit Corp.,
5.56% 2/6/97............. 4,996,139
------------
Pharmaceuticals (4.3%):
5,000,000 Schering Corp., 5.31%,
3/18/97.................. 4,966,875
5,000,000 Schering Corp., 5.24%,
3/25/97.................. 4,962,156
</TABLE>
Continued
-32-
<PAGE> 34
QUALIVEST FUNDS
MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------------------------- ------------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Pharmaceuticals, Continued:
$ 5,000,000 Warner-Lambert Co., 5.32%,
5/9/97................... $ 4,928,328
5,000,000 Warner-Lambert Co., 5.33%,
5/15/97.................. 4,923,750
5,000,000 Warner-Lambert Co., 5.32%,
6/6/97................... 4,907,639
------------
24,688,748
------------
Printing & Publishing (0.9%):
5,000,000 McGraw-Hill Companies Inc.,
5.28%, 5/20/97........... 4,920,800
------------
Security Brokers & Dealers (4.3%):
5,000,000 Merrill Lynch & Co., Inc.,
5.35%, 3/5/97............ 4,976,222
5,000,000 Merrill Lynch & Co., Inc.,
5.34%, 3/12/97........... 4,971,075
5,000,000 Merrill Lynch & Co., Inc.,
5.35%, 3/18/97........... 4,966,563
5,000,000 Merrill Lynch & Co., Inc.,
5.30%, 4/14/97........... 4,947,000
5,000,000 Merrill Lynch & Co., Inc.,
5.30%, 4/23/97........... 4,940,375
------------
24,801,235
------------
Telecommunications (6.0%):
5,000,000 Ameritech Capital Funding
Corp., 5.38%, 3/7/97..... 4,974,758
5,000,000 Ameritech Capital Funding
Corp., 5.28%, 3/13/97.... 4,970,667
5,000,000 Lucent Technologies Corp.,
5.29%, 2/13/97........... 4,991,183
5,000,000 Lucent Technologies Corp.,
5.26%, 3/10/97........... 4,972,969
5,000,000 Lucent Technologies Corp.,
5.25%, 3/26/97........... 4,961,354
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Telecommunications, Continued:
$ 5,000,000 Lucent Technologies Corp.,
5.28%, 5/16/97........... $ 4,923,733
5,000,000 Lucent Technologies Corp.,
5.31%, 5/23/97........... 4,918,138
------------
34,712,802
------------
Total Commercial Paper 494,728,325
------------
FUNDING AGREEMENTS (3.8%):
Insurance
3,000,000 Commonwealth Life Insurance
Co., 6.06%*, 2/3/97**.... 3,000,000
9,000,000 General American Life
Insurance Co., 5.87%*,
2/3/97**................. 9,000,000
10,000,000 Sun Life Insurance Co. of
America, 5.63%*,
2/3/97**................. 10,000,000
------------
Total Funding Agreements 22,000,000
------------
DAILY DEMAND NOTES (2.6%):
4,000,000 General Electric Capital
Corp.,5.32%*, 2/3/97**... 4,000,000
11,000,000 PACCAR Leasing Corp.,
5.52%*, 2/19/97**........ 11,000,000
------------
15,000,000
------------
Total Investments, at amortized cost 531,728,325
------------
REPURCHASE AGREEMENTS (7.9%):
45,645,104 Merrill Lynch, 5.48%*,
2/3/97 (Collateralized by
$88,145,000 U.S. Treasury
Strips, 9.38%-12.00%,
11/15/04-2/15/15, market
value $46,558,765)....... 45,645,104
------------
Total Repurchase Agreements 45,645,104
------------
Total (Cost--$577,373,429)(a) $577,373,429
============
</TABLE>
- ---------
Percentages are based on net assets of $574,979,658.
(a) Cost for federal income tax and financial reporting purposes are the same.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon bank prime rates or an index of
market interest rates. The rate reflected on the Schedule of Portfolio
Investments is the rate in effect at January 31, 1997.
** Put and demand features exist allowing the Fund to require the repurchase of
the investment within variable time periods of less than one year.
See notes to financial statements.
-33-
<PAGE> 35
QUALIVEST FUNDS
U.S. TREASURY MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
U.S. TREASURY BILLS (62.4%):
$8,000,000 2/6/97...................... $ 7,994,427
9,000,000 2/13/97..................... 8,984,960
5,000,000 2/20/97..................... 4,986,348
3,000,000 2/27/97..................... 2,989,156
9,000,000 3/6/97...................... 8,959,149
8,000,000 3/13/97..................... 7,956,311
9,000,000 3/20/97..................... 8,941,739
3,000,000 3/27/97..................... 2,978,323
6,000,000 4/3/97...................... 5,949,980
6,000,000 4/10/97..................... 5,943,702
6,000,000 4/17/97..................... 5,937,688
6,000,000 4/24/97..................... 5,931,052
6,000,000 5/22/97..................... 5,907,600
6,000,000 5/29/97..................... 5,901,720
3,000,000 6/26/97..................... 2,938,919
------------
Total U.S. Treasury Bills 92,301,074
------------
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
U.S. TREASURY NOTES (29.2%):
$3,000,000 4.75%, 2/15/97.............. $ 2,998,948
6,000,000 6.88%, 2/28/97.............. 6,007,305
6,000,000 6.88%, 3/31/97.............. 6,014,638
5,000,000 8.50%, 4/15/97.............. 5,032,096
9,000,000 6.50%, 4/30/97.............. 9,025,988
2,000,000 6.50%, 5/15/97.............. 2,006,429
3,000,000 8.50%, 5/15/97.............. 3,026,357
6,000,000 6.13%, 5/31/97.............. 6,013,864
3,000,000 5.63%, 6/30/97.............. 3,003,553
------------
Total U.S. Treasury Notes 43,129,178
------------
INVESTMENT COMPANIES (8.3%):
6,219,405 Dreyfus Treasury Prime Cash
Management, Class A....... 6,219,405
6,000,000 Provident Treasury Trust
Fund...................... 6,000,000
------------
Total Investment Companies 12,219,405
------------
Total (Cost--$147,649,657)(a) $147,649,657
============
</TABLE>
- ---------
Percentages indicated are based on net assets of $147,836,623.
(a) Cost for federal income tax and financial reporting purposes are the same.
See notes to financial statements.
-34-
<PAGE> 36
QUALIVEST FUNDS
TAX FREE MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ---------- ----------------------------- -----------
<C> <S> <C>
MUNICIPAL BONDS (80.9%):
Alaska (6.1%):
$1,500,000 Alaska Housing Finance Corp.,
Series C, 3.55%*,
6/1/26**................... $ 1,500,000
1,000,000 Anchorage, Electric Utility
Revenue, Series D, 3.60%*,
12/1/26**.................. 1,000,000
-----------
2,500,000
-----------
Colorado (1.7%):
715,000 Adams County School District
#14, 0.00%, 12/1/97........ 693,958
-----------
Florida (3.4%):
1,400,000 Florida Housing Finance
Agency, Series EE, 3.55%*,
9/1/08**................... 1,400,000
-----------
Illinois (9.7%):
1,500,000 Chicago, O'Hare International
Airport, 3.50%*, 1/1/15**,
LOC: Societe General....... 1,500,000
750,000 Lake County, Community School
District #60, Waukegan,
Series D, 6.70%,
12/1/97,FSA................ 768,458
1,000,000 Illinois Development Finance
Authority, PCR, 3.50%*,
11/1/28**, LOC: Canadian
Imperial Bank.............. 1,000,000
700,000 Illinois Development Finance
Authority, Presbyterian
Home Lake, Series A,
3.55%*, 9/1/13**........... 700,000
-----------
3,968,458
-----------
Kansas (2.1%):
855,000 Leavenworth County, 3.70%,
12/1/97.................... 855,000
-----------
Maryland (3.7%):
1,500,000 Montgomery County Housing
Opportunity, Issue I,
3.70%*, 11/1/20**.......... 1,500,000
-----------
Massachusetts (2.4%):
1,000,000 Massachusetts Bay General
Transportation Authority
System-1984 A, 3.63%*,
9/1/14**................... 1,000,000
-----------
Michigan (2.4%):
1,000,000 City of Detroit School
District, 4.50%, 5/1/97.... 1,001,299
-----------
<CAPTION>
SHARES OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
----------------------------- -----------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Missouri (3.7%):
$1,500,000 Columbia, 3.55%*, 6/1/08**,
LOC; Toronto Dominion
Bank....................... $ 1,500,000
-----------
Nebraska (2.4%):
1,000,000 Nebraska Educational Facility
Authority, 3.65%*,
12/1/00**, FGIC............ 1,000,000
-----------
New Hampshire (1.3%):
500,000 New Hampshire Turnpike,
System Revenue, 8.38%,
11/1/17.................... 526,712
-----------
Oklahoma (3.2%):
1,300,000 Garfield County, Industrial
Authority, PCR, Oklahoma
Gas & Electric Co. Project
A, 3.55%*, 1/1/25**........ 1,300,000
-----------
Oregon (16.3%):
200,000 Eugene, Electric Utility
Revenue, 4.00%, 8/1/97..... 200,000
1,600,000 Franciscan Health Systems,
3.65%*, 12/1/24**, LOC:
Toronto Dominion Bank...... 1,600,000
750,000 Jackson Co., Series #5,
4.50%, 6/1/97, FSA......... 751,666
1,500,000 Oregon, Series 73, 3.50%*,
12/1/17**, LOC: Morgan
Guaranty Trust............. 1,500,000
445,000 Port of the Dalles, 6.55%,
7/1/04..................... 450,095
600,000 Oregon Department
Transportation Revenue,
Highway User Tax, 4.55%,
3/1/97..................... 600,424
1,500,000 Oregon Health, Housing,
Education, 3.50%*,
12/1/15**, LOC: Rabobank
Nederland.................. 1,500,000
100,000 Umatilla County, Hospital
Facility Authority,
Fransican Health Systems,
Series B, 3.50%*,
12/1/24**, LOC: Societe
Generale................... 100,000
-----------
6,702,185
-----------
</TABLE>
Continued
-35-
<PAGE> 37
QUALIVEST FUNDS
TAX FREE MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
----------------------------- -----------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Texas (6.1%):
$1,500,000 Gulf Coast, PCR, Waste
Disposal Authority,
Monsanto Co, Project,
3.50%*, 7/1/01**........... $ 1,500,000
1,000,000 Texas, 7.10%, 8/1/97......... 1,015,412
-----------
2,515,412
-----------
Utah (3.7%):
1,500,000 Salt Lake County Housing
Authority, Multifamily
Revenue, Sante Fe Apts.
Project, 3.60%*, 7/1/22**,
LOC: Dresdner Bank A.G..... 1,500,000
-----------
Vermont (3.7%):
1,500,000 Vermont Student Assoc. Corp.,
3.50%*, 1/1/99**........... 1,500,000
-----------
Virginia (3.4%):
1,400,000 Fairfax County Industrial
Development, 3.55%*,
10/1/16**, LOC: Dai-Ichi
Kangyo..................... 1,400,000
-----------
Washington (5.6%):
1,300,000 Seattle Water System Revenue,
3.50%*, 9/1/25**, LOC:
Bayerische Landesbank...... 1,300,000
1,000,000 State, 3.60%, 1/1/98......... 1,012,456
-----------
2,312,456
-----------
Total Municipal Bonds 33,175,480
-----------
TAX FREE COMMERCIAL PAPER (12.7%):
Illinois (2.4%):
1,000,000 Public Health Finance
Authority, 3.50%,
2/19/97.................... 1,000,000
-----------
<CAPTION>
SHARES OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ---------- ----------------------------- -----------
<C> <S> <C>
TAX FREE COMMERCIAL PAPER, CONTINUED:
Louisiana (2.4%):
$1,000,000 Louisiana, PFA, School Health
Care System, 3.15%,
4/8/97..................... $ 1,000,000
-----------
South Carolina (3.1%):
1,200,000 York County, PCR, 3.35%,
3/11/97.................... 1,200,000
-----------
Texas (2.4%):
1,000,000 Texas 3.50%, 5/28/97......... 1,000,000
-----------
Washington (2.4%):
1,000,000 Seattle Municipal Light &
Power, 3.70%, 2/4/97....... 1,000,000
-----------
Total Tax Free Commercial Paper 5,200,000
-----------
ANTICIPATION NOTES (7.3%):
California (4.9%):
1,000,000 California, Series A, 4.50%,
6/30/97.................... 1,002,080
1,000,000 Yuba County, Tax & Revenue,
4.50%, 10/31/97............ 1,005,380
-----------
2,007,460
-----------
New York (2.4%):
1,000,000 New York City, GO, Series A,
4.50%, 4/15/97............. 1,001,732
-----------
Total Anticipation Notes 3,009,192
-----------
INVESTMENT COMPANIES (1.5%):
621,084 Federated Tax Free Cash
Reserve Money Market....... 621,084
-----------
Total Investment Companies 621,084
-----------
Total (Cost--$42,005,756)(a) $42,005,756
===========
</TABLE>
- ---------
Percentages indicated are based on net assets of $41,015,171.
(a) Cost for federal income tax and financial reporting purposes are the same.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon bank prime rates or an index of
market interest rates. The rate reflected on the Schedule of Portfolio
Investments is the rate in effect at January 31, 1997.
** Put and demand features exist allowing the Fund to require the repurchase of
the investment within variable time periods of less than one year.
<TABLE>
<S> <C>
FGIC Insured by Financial Guaranty Insurance Corp.
FSA Insured by Financial Security Assurance
LOC Letter of Credit
PCR Pollution Control Revenue
</TABLE>
See notes to financial statements.
-36-
<PAGE> 38
QUALIVEST FUNDS
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
ASSET BACKED SECURITIES (4.9%):
$2,000,000 Associates Manufactured
Housing Pass Through,
6.70%, 10/15/11........... $ 2,016,340
1,500,000 EquiCredit, 7.35%,
6/15/14................... 1,520,370
2,000,000 EQCC Home Equity Loan Trust,
6.70%, 6/15/08............ 2,002,220
1,500,000 GE Capital Mortgage
Services, 7.15%,
10/31/11.................. 1,520,055
1,500,000 Oakwood Mortgage, 6.75%,
4/15/27................... 1,495,800
------------
Total Asset Backed Securities 8,554,785
------------
CORPORATE BONDS (22.2%):
Automotive (1.6%):
1,000,000 Ford Motor Credit, 5.75%,
1/25/01................... 971,250
1,000,000 General Motors Acceptance
Corp., 8.63%, 6/15/99..... 786,563
750,000 General Motors Acceptance
Corp., 7.25%, 5/15/03..... 1,018,750
------------
2,776,563
------------
Banking (1.8%):
1,000,000 BankAmerica Corp., 7.13%,
5/1/06.................... 1,001,250
1,000,000 Norwest, 6.75%, 5/12/00..... 1,006,250
1,000,000 Westpac Banking, 9.13%,
8/15/01................... 1,088,750
------------
3,096,250
------------
Banking -- Foreign (0.5%):
1,000,000 Bayerishe Landesbank-NY,
6.20%, 2/9/06............. 947,500
------------
Financial -- Commercial (1.7%):
1,000,000 Heller Financial Inc.,
6.50%, 11/1/01............ 987,500
2,013,000 Standard Credit Card, 7.88%,
7/23/00................... 2,068,800
------------
3,056,300
------------
Financial Services (2.8%):
1,000,000 Associates Corp., N.A.,
6.00%, 3/15/00............ 987,500
1,000,000 Chrysler Financial Corp.,
6.18%, 12/15/00........... 986,250
1,000,000 General Electric Capital
Corp., 5.47%, 1/19/99..... 987,500
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------------------------- ------------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Financial Services, Continued:
$1,000,000 Household International,
Inc., 7.25%, 5/15/06...... $ 1,012,500
1,000,000 U.S. West Capital Funding,
6.46%, 12/2/02............ 985,000
------------
4,958,750
------------
Government Agency (0.6%):
1,000,000 Hydro-Quebec, 7.38%,
2/1/03.................... 1,031,250
------------
Industrial Goods & Services (0.5%):
1,000,000 FMC Corp., 6.75%, 1/16/05... 959,000
------------
Insurance (1.7%):
1,000,000 SAFECO Credit Corp., 7.88%,
4/1/05.................... 1,036,250
1,000,000 St. Paul Cos., 9.38%,
6/15/97................... 1,013,570
943,000 Travelers Corp., 7.75%,
6/15/99................... 971,290
------------
3,021,110
------------
Manufacturing -- Consumer Goods (0.6%):
1,000,000 VF Corp., 7.60%, 4/1/04..... 1,015,000
------------
Natural Gas Transmission & Distribution (1.2%):
1,000,000 Pacific Gas Transmission,
6.64%, 7/5/00............. 997,500
1,000,000 Enron, 7.63%, 9/10/04....... 1,035,000
------------
2,032,500
------------
Oil & Gas Exploration & Production Services (2.3%):
1,000,000 Baker Hughes, Inc., 7.63%,
2/15/99................... 1,023,750
1,000,000 Occidental Petroleum, 5.84%,
11/9/98................... 992,820
1,000,000 Shell Oil Co., 6.63%,
7/1/99.................... 1,007,500
1,000,000 Union Oil of California
Corp., 8.75%, 8/15/01..... 1,078,750
------------
4,102,820
------------
Railroads (0.5%):
1,000,000 Union Pacific Co., 6.13%,
1/15/04................... 940,000
------------
Retail Stores (2.3%):
1,000,000 Dayton Hudson, 6.80%,
10/1/01................... 1,001,250
1,000,000 Price/Costco, Inc., 7.13%,
6/15/05................... 993,750
1,000,000 Sears Roebuck Acceptance,
6.69%, 4/30/01............ 997,500
1,000,000 Wal-Mart Stores, 6.75%,
5/15/02................... 1,010,000
------------
4,002,500
------------
</TABLE>
Continued
-37-
<PAGE> 39
QUALIVEST FUNDS
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------------------------- ------------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Utilities -- Electric (2.4%):
$1,057,000 Consolidated Edison, 6.38%,
4/1/03.................... $ 1,029,254
1,000,000 National Rural Utilities,
8.50%, 2/15/98............ 1,023,750
1,000,000 PacifiCorp, 6.75%, 4/1/05... 985,000
1,057,000 Public Service Electric &
Gas, 7.63%, 2/1/00........ 1,087,389
------------
4,125,393
------------
Telecommunications (1.1%):
2,000,000 AT&T Corp., 6.57%,
1/21/00................... 2,013,760
------------
Utilities -- Telephone (0.6%):
1,000,000 Nippon Telephone, 9.50%,
7/27/98................... 1,047,500
------------
Total Corporate Bonds 39,126,196
------------
U.S. GOVERNMENT AGENCIES (26.3%):
Federal Home Loan Mortgage Corp.:
1,000,000 7.13%, 7/21/99.............. 1,023,100
1,500,000 6.50%, 6/8/00............... 1,504,740
1,938,775 7.00%, 5/15/03.............. 1,970,668
3,000,000 6.78%, 3/15/04.............. 2,961,060
1,000,000 7.12%, 3/27/06.............. 994,630
2,962,285 7.00%, 6/1/10............... 2,965,899
3,333,740 7.00%, 7/15/26.............. 3,386,713
Federal National Mortgage Assoc.:
2,000,000 5.67%, 1/25/01.............. 1,944,600
3,000,000 6.87%, 10/2/01.............. 3,035,100
2,500,000 7.05%, 6/25/02.............. 2,508,075
2,800,000 8.40%, 10/25/04............. 2,913,540
1,000,000 8.50%, 2/1/05............... 1,048,370
2,000,000 6.81%, 11/21/06............. 1,962,240
1,633,408 6.00%, 9/25/08.............. 1,555,723
1,597,037 7.00%, 3/1/09............... 1,598,475
635,692 7.00%, 6/1/10............... 636,270
2,850,395 7.50%, 9/1/10............... 2,893,749
2,899,838 7.00%, 1/1/11............... 2,902,506
3,000,000 7.00%, 5/18/17.............. 3,030,000
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Government National Mortgage Assoc:
$3,548,663 7.50%, 4/20/03.............. $ 3,642,241
Private Export Funding Corp.:
1,000,000 5.75%, 4/30/98.............. 997,500
Student Loan Marketing Assoc.:
943,000 7.72%, 1/25/99.............. 971,073
------------
Total U.S. Government Agencies 46,446,272
------------
U.S. TREASURY NOTES (41.5%):
4,000,000 6.13%, 5/15/98.............. 4,019,320
4,500,000 5.88%, 10/31/98............. 4,498,335
7,747,000 6.38%, 1/15/99.............. 7,817,730
3,816,000 7.13%, 9/30/99.............. 3,914,873
5,309,000 7.75%, 12/31/99............. 5,541,800
3,300,000 6.88%, 3/31/00.............. 3,370,224
4,300,000 6.13%, 7/31/00.............. 4,295,270
5,750,000 6.13%, 9/30/00.............. 5,737,235
2,950,000 5.75%, 10/31/00............. 2,906,871
3,700,000 8.00%, 5/15/01.............. 3,941,462
7,100,000 6.63%, 7/31/01.............. 7,198,335
4,000,000 6.25%, 10/31/01............. 3,993,680
1,965,000 7.50%, 11/15/01............. 2,062,012
3,000,000 6.25%, 2/15/03.............. 2,986,080
2,500,000 5.88%, 2/15/04.............. 2,426,275
700,000 7.25%, 5/15/04.............. 732,844
3,500,000 7.50%, 2/15/05.............. 3,720,780
1,200,000 6.50%, 8/15/05.............. 1,199,964
2,700,000 6.88%, 5/15/06.............. 2,763,855
------------
Total U.S. Treasury Notes 73,126,945
------------
Total Investments, at value 167,254,198
------------
REPURCHASE AGREEMENTS (5.0%):
8,854,898 Merrill Lynch, 5.59%*,
2/3/97 (Collateralized by
$31,180,000 U.S. Treasury
Strips, 11.25%, 2/15/15,
market value
$9,032,534)............... 8,854,898
------------
Total Repurchase Agreements 8,854,898
------------
Total (Cost--$175,881,698)(a) $176,109,096
============
</TABLE>
- ---------
Percentages are based on net assets of $176,269,963.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation..... $1,184,354
Unrealized depreciation..... (956,956)
----------
Net unrealized
appreciation.............. $ 227,398
==========
</TABLE>
* 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, 1997.
See notes to financial statements.
-38-
<PAGE> 40
QUALIVEST FUNDS
DIVERSIFIED BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
CORPORATE BONDS (10.3%):
Agriculture (1.3%):
$2,992,513 LB Commercial Conduit
Mortgage Trust, 7.42%,
6/25/26................... $ 3,052,363
------------
Automotive (0.4%):
1,000,000 Ford Motor Credit, 5.75%,
1/25/01................... 971,250
------------
Banking (0.5%):
1,000,000 Westpac Banking, 9.13%,
8/15/01................... 1,088,750
------------
Financial Services (2.2%):
1,000,000 Associates Corp. N.A.,
6.75%, 7/15/97............ 1,005,270
1,000,000 Commercial Credit Co.,
6.38%, 9/15/02............ 987,500
1,000,000 General Electric Capital
Corp., 5.47%, 1/19/99..... 987,500
1,000,000 Government National Mortgage
Assoc., 7.00%, 9/15/02.... 1,013,750
1,000,000 Norwest Financial, 6.25%,
12/15/07.................. 937,500
------------
4,931,520
------------
Forest Products (0.4%):
1,000,000 Weyerhauser Co., 7.25%,
7/1/13.................... 991,250
------------
Health Care Products (0.5%):
1,000,000 Johnson & Johnson, 8.25%,
11/9/04................... 1,078,750
------------
Insurance (0.5%):
1,000,000 SAFECO Credit Corp., 7.88%,
4/1/05.................... 1,036,250
------------
Manufacturing -- Consumer Goods (0.4%):
1,000,000 VF Corp., 7.60%, 4/1/04..... 1,015,000
------------
Railroads (0.4%):
975,821 Conrail, Inc., 6.76%,
5/25/15................... 968,503
------------
Retail Stores (0.9%):
1,000,000 Price/Costco, Inc., 7.13%,
6/15/05................... 993,750
1,000,000 Wal-Mart Stores, 6.75%,
5/15/02................... 1,010,000
------------
2,003,750
------------
Telecommunications (0.6%):
1,250,000 AirTouch Communications,
7.50%, 7/15/06............ 1,275,000
------------
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------------------------- ------------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Utilities -- Electric (1.3%):
$1,000,000 Consolidate Edison, 6.50%,
2/1/01.................... $ 995,000
1,000,000 Pacific Gas Transmission,
7.10%, 6/1/05............. 996,250
1,000,000 PacifiCorp., 6.75%,
4/1/05.................... 985,000
------------
2,976,250
------------
Utilities -- Oil & Gas (0.9%):
1,000,000 Enron Corp., 7.13%,
5/15/07................... 998,750
1,000,000 Occidental Petroleum, 6.39%,
11/9/00................... 992,500
------------
1,991,250
------------
Total Corporate Bonds 23,379,886
------------
COLLATERALIZED MORTGAGE OBLIGATIONS (1.8%):
4,000,000 Midland Realty Acceptance
Corp., Series 1996-CL,
Class A3, 7.64%,
7/25/06................... 4,110,000
------------
MORTGAGE PASS THROUGH (13.2%):
Federal National Mortgage Association:
2,852,811 Pool #190255, 6.50%,
2/1/09.................... 2,813,100
3,358,563 Pool #303408, 6.50%,
6/1/10.................... 3,308,252
2,079,601 Pool #D25558, 7.50%,
10/1/22................... 2,085,195
Federal Home Loan Mortgage Corp.:
2,876,409 Pool #C00209, 7.50%,
2/1/23.................... 2,884,146
4,341,132 Pool #G00238, 8.50%
6/1/24.................... 4,497,717
------------
15,588,410
------------
Government National Mortgage Assoc.:
462,024 Pool #332377, 7.00%,
10/15/07.................. 464,385
298,364 Pool #337178, 7.00%,
10/15/07.................. 299,874
165,882 Pool #360174, 7.00%,
5/15/08................... 166,723
591,474 Pool #350688, 7.00%,
7/15/08................... 594,491
842,344 Pool #386559, 7.00%,
6/15/09................... 846,733
4,485,923 Pool #303790, 8.50%,
3/15/22................... 4,647,056
3,656,429 Pool #353131, 7.00%,
7/15/23................... 3,591,491
1,896,109 Pool #337540, 7.00%,
8/15/23................... 1,858,186
1,811,070 Pool #354790, 6.50%,
4/15/24................... 1,726,728
------------
14,195,667
------------
Total Mortgage Pass Through 29,784,077
------------
U.S. GOVERNMENT AGENCIES (10.0%):
Federal Farm Credit Banks:
1,000,000 7.06%, 5/24/10.............. 1,016,740
------------
</TABLE>
Continued
-39-
<PAGE> 41
QUALIVEST FUNDS
DIVERSIFIED BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------------------------- ------------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Federal National Mortgage Association:
$1,000,000 7.05%, 11/12/02............. $ 1,031,530
2,000,000 6.44%, 6/21/05.............. 1,960,600
2,000,000 6.54%, 10/3/05.............. 1,972,580
1,000,000 6.50%, 1/13/11.............. 943,580
2,000,000 7.25%, 3/21/11.............. 1,991,980
3,958,000 6.75%, 12/25/21............. 3,897,560
2,836,071 8.00%, 3/1/23............... 2,898,634
2,494,320 7.50%, 4/1/26............... 2,500,530
436,020 7.50%, 5/1/26............... 437,096
------------
17,634,090
------------
Green Tree 1996-F A3:
4,000,000 6.90%, 6/15/05.............. 3,991,760
------------
Total U.S. Government Agencies 22,642,590
------------
U.S. TREASURY BONDS (14.4%):
8,450,000 7.25%, 5/15/16.............. 8,802,112
5,000,000 9.13%, 5/15/18.............. 6,240,700
9,000,000 7.25%, 8/15/22.............. 9,358,560
8,800,000 6.25%, 8/15/23.............. 8,112,104
------------
Total U.S. Treasury Bonds 32,513,476
------------
U.S. TREASURY NOTES (43.7%):
4,500,000 6.75%, 5/31/97.............. 4,519,035
6,000,000 5.63%, 1/31/98.............. 5,999,580
9,500,000 5.13%, 11/30/98............. 9,374,980
8,500,000 6.50%, 4/30/99.............. 8,593,840
8,350,000 7.13%, 9/30/99.............. 8,566,349
9,000,000 6.75%, 4/30/00.............. 9,155,250
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
U.S. TREASURY NOTES, CONTINUED:
$6,000,000 6.13%, 7/31/00.............. $ 5,993,400
9,000,000 5.63%, 2/28/01.............. 8,803,800
7,000,000 7.50%, 11/15/01............. 7,345,591
5,100,000 7.50%, 5/15/02.............. 5,374,431
8,300,000 6.38%, 8/15/02.............. 8,330,960
5,000,000 6.25%, 2/15/03.............. 4,976,800
4,250,000 7.50%, 2/15/05.............. 4,518,090
7,000,000 6.88%, 5/15/06.............. 7,165,550
------------
Total U.S. Treasury Notes 98,717,656
------------
Total Investments, at value 211,147,685
------------
REPURCHASE AGREEMENTS (5.2%):
11,625,186 Merrill Lynch, 5.59%*,
2/3/97, (Collateralized by
$42,454,000 U.S Treasury
Strips, 10.63%-11.25%,
11/15/97-2/15/99, market
value $11,862,730)........ 11,625,186
------------
Total Repurchase Agreements 11,625,186
------------
Total (Cost-$223,581,900)(a) $222,772,871
------------
</TABLE>
- ---------
Percentages are based on net assets of $225,931,961.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $ 1,396,005
Unrealized depreciation... (2,205,034)
-----------
Net unrealized
depreciation............ $ (809,029)
==========
</TABLE>
* 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, 1997.
See notes to financial statements.
-40-
<PAGE> 42
THE QUALIVEST FUNDS
SMALL COMPANY VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS (94.8%):
Apparel (0.4%):
125,700 Tarrant Apparel Group
(b)...................... $ 1,744,088
------------
Automotive Parts (1.8%):
73,500 Bonded Motors, Inc.(b)..... 725,813
103,400 Edelbrock Corp.(b)......... 1,731,950
142,600 Excel Industries, Inc...... 2,352,900
74,140 Supreme Industries,
Inc.(b).................. 463,375
115,300 Walbro Corp................ 2,089,812
------------
7,363,850
------------
Banking (2.2%):
67,300 City National Corp......... 1,531,075
177,700 First Republic Bancorp,
Inc.(b).................. 3,398,513
104,600 Onbank, Inc................ 3,896,350
------------
8,825,938
------------
Beverages (0.6%):
100,000 Suiza Foods Corp.(b)....... 2,550,000
------------
Building Materials ( 1.9%):
45,800 Centex Construction
Products................. 898,825
134,600 Dayton Superior Corp.(b)... 1,783,450
145,900 Morgan Products Ltd.(b).... 1,258,388
65,800 Simpson Manufacturing
Co.(b)................... 1,612,100
117,800 Synthetic Industries(b).... 2,223,475
------------
7,776,238
------------
Chemicals -- Specialty (0.7%):
109,600 AT Plastics, Inc........... 1,082,300
43,500 Cambrex Corp............... 1,571,438
113,800 Consep, Inc.(b)............ 369,850
------------
3,023,588
------------
Commercial Services (0.9%):
94,200 Coinmach Corp.(b).......... 1,742,700
136,900 Complete Management,
Inc...................... 1,762,588
------------
3,505,288
------------
Computers & Peripherals (11.3%):
596,200 Applied Magnetics
Corp.(b)................. 32,940,050
298,000 Concurrent Computer
Corp.(b)................. 605,313
227,500 Control Data Systems(b).... 3,867,500
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Computers & Peripherals, Continued:
258,500 Gandalf Technologies,
Inc.(b).................. $ 727,031
136,200 General Scanning,
Inc.(b).................. 1,617,375
77,200 National Computer Systems,
Inc...................... 1,886,575
27,000 Plaintree Systems,
Inc.(b).................. 106,313
162,900 Planar Systems, Inc.(b).... 1,995,525
54,700 Proxima Corp.(b)........... 649,562
542,700 Zycad Corp.(b)............. 1,254,994
------------
45,650,238
------------
Construction (0.4%):
75,100 Continental Homes Holding
Corp..................... 1,614,650
------------
Consumer Goods (0.3%):
94,800 A.T. Cross Co.............. 1,137,600
------------
Consumer Services (0.6%):
92,500 Matthews International
Corp., Class A........... 2,624,688
------------
Containers -- Metal, Glass, Paper, Plastic (1.2%):
100,200 Brockway Standard(b)....... 1,891,275
97,800 Libbey, Inc................ 2,872,875
------------
4,764,150
------------
Drug Stores (0.8%):
573,600 Drug Emporium, Inc......... 3,083,100
------------
Electrical Equipment (3.0%):
99,300 AFC Cable Systems, Inc..... 2,457,675
49,800 Exide Electronics Group,
Inc.(b).................. 796,800
388,900 Magnetek, Inc.............. 5,347,375
63,500 Scotsman Industries,
Inc...................... 1,524,000
90,900 Thomas Industries, Inc..... 1,988,438
------------
12,114,288
------------
Electronic Component (0.5%):
80,700 TNP Enterprises, Inc....... 2,219,250
------------
Electronic Computing (0.5%):
69,100 Continental Circuits
Corp.(b)................. 915,575
90,300 Praegitzer Industries,
Inc.(b).................. 1,106,175
------------
2,021,750
------------
</TABLE>
Continued
-41-
<PAGE> 43
QUALIVEST FUNDS
SMALL COMPANY VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Electronic Computing Equipment (0.2%):
148,600 California Micro Devices
Corp.(b)................. $ 873,025
------------
Electronic & Electrical -- General (2.4%):
147,800 FEI Co.(b)................. 1,829,025
101,100 IEC Electronics Corp.(b)... 783,525
6,500 Mentor Graphics Corp.(b)... 67,438
284,700 Moog, Inc., Class A(b)..... 7,010,737
------------
9,690,725
------------
Energy (0.9%):
125,600 Trigen Energy Corp......... 3,501,100
------------
Engineering, Industrial Construction (0.3%):
134,400 Guy F. Atkinson Co.,
California(b)............ 1,327,200
------------
Entertainment (0.2%):
97,000 Moovies, Inc............... 642,625
------------
Environmental Control (3.0%):
1,347,300 Air & Water Technologies,
Class A (b).............. 8,589,038
681,600 Catalytica, Inc.(b)........ 2,726,400
323,900 Envirosource, Inc.(b)...... 627,556
------------
11,942,994
------------
Financial Services (1.1%):
90,200 Dignity Partners,
Inc.(b).................. 225,500
58,600 Medallion Financial
Corp..................... 974,225
198,700 Rockford Industries,
Inc.(b).................. 2,334,725
78,000 Willis Lease Finance
Corp.(b)................. 1,053,000
------------
4,587,450
------------
Food Distributors & Wholesalers (0.8%):
98,200 Performance Food Group,
Inc.(b).................. 1,595,750
94,300 Rykoff Sexton, Inc......... 1,520,588
------------
3,116,338
------------
Food Processing & Packaging (0.0%):
67,300 Stokely USA, Inc.(b)....... 126,188
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
COMMON STOCKS, CONTINUED:
Forest Products -- Lumber, Paper (0.2%):
36,500 Specialty Paperboard,
Inc.(b).................. $ 839,500
------------
Furniture (0.6%):
93,300 Stanley Furniture Co.,
Inc.(b).................. 2,332,500
------------
Health Care (0.9%):
131,200 Theratx, Inc.(b)........... 1,574,400
160,600 Unison Healthcare
Corp.(b)................. 2,248,400
------------
3,822,800
------------
Heavy Machinery -- Industrial, Farm, Construction (0.7%):
177,000 Park-Ohio Industries,
Inc.(b).................. 2,732,438
------------
Insurance -- Broker (0.4%):
63,600 Acordia, Inc............... 1,772,850
------------
Insurance -- Life (3.5%):
80,000 Amvestors Financial
Corp..................... 1,300,000
327,296 Pioneer Financial Services,
Inc...................... 8,427,872
114,600 Security-Connecticut
Corp..................... 4,397,775
------------
14,125,647
------------
Insurance -- Property, Casualty, Health & Other (10.5%):
83,800 Acmat Corp.(b)............. 1,215,100
251,000 American Eagle Group,
Inc.(b).................. 1,380,500
88,200 Chandler Insurance Company,
Ltd.(b).................. 496,125
140,760 Delphi Financial
Group(b)................. 4,398,750
158,700 Enhanced Financial Services
Group, Inc............... 5,832,225
63,900 Farm Family Holdings,
Inc.(b).................. 1,469,700
288,310 Fremont General Corp....... 8,649,300
161,200 John Alden Financial
Corp..................... 2,760,550
125,000 Lasalle Re Holdings,
Ltd...................... 3,382,813
52,512 Orion Capital Corp......... 3,308,256
169,150 Penn Treaty American
Corp.(b)................. 4,736,200
99,500 Philadelphia Consolidated
Holding Corp. (b)........ 2,686,500
53,700 Scpie Holdings, Inc.(b).... 1,127,700
</TABLE>
Continued
-42-
<PAGE> 44
QUALIVEST FUNDS
SMALL COMPANY VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Insurance -- Property, Casualty, Health & Other,
Continued:
13,400 Symons International Group,
Inc.(b).................. $ 214,400
78,100 Westbridge Capital
Corp.(b)................. 868,862
------------
42,526,981
------------
Leisure -- Recreation, Gaming (1.2%):
100,600 Cannondale Corp.(b)........ 2,338,950
622,700 Topps, Co.(b).............. 2,646,475
------------
4,985,425
------------
Machine Tools (0.5%):
174,100 Bridgeport Machines,
Inc.(b).................. 1,936,863
------------
Medical Services (0.5%):
188,500 Diagnostic Health Services,
Inc.(b).................. 1,837,875
------------
Medical Supplies (1.7%):
148,114 Cardiotech International,
Inc.(b).................. 342,514
294,100 Cholestech Corp.(b)........ 1,654,312
321,300 Polymedica Industries(b)... 1,847,475
146,100 Space Labs Medical,
Inc.(b).................. 3,104,625
------------
6,948,926
------------
Metals -- Fabrication (1.3%):
4,300 Barnes Group, Inc.......... 293,475
282,000 Brown & Sharp Manufacturing
Co.(b)................... 3,560,250
249,500 Foster L.B., Co.(b)........ 998,000
39,300 Greenbrier Cos., Inc....... 437,213
------------
5,288,938
------------
Miscellaneous Manufacturing (1.0%):
74,200 Bacou USA, Inc.(b)......... 1,131,550
59,850 Tredegar Industries,
Inc...................... 2,356,594
34,700 Whittaker Corp.(b)......... 407,725
------------
3,895,869
------------
Office Equipment & Supplies (0.2%):
93,500 AM International,
Inc.(b).................. 350,625
81,000 Kentek Information Systems,
Inc...................... 475,875
------------
826,500
------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Oil & Gas Production, Exploration & Services (3.7%):
684,000 Abacan Resource Corp.(b)... $ 7,438,500
106,000 Cairn Energy USA,
Inc.(b).................. 1,205,750
253,460 Forest Oil Corp.(b)........ 4,150,408
160,600 Titan Exploration, Inc..... 2,027,575
------------
14,822,233
------------
Pharmaceuticals (0.2%):
55,500 Roberts Pharmaceutical
Corp.(b)................. 790,875
------------
Photography (0.3%):
75,100 CPAC, Inc.(b).............. 1,013,850
------------
Pollution Control Services & Equipment (0.5%):
175,900 Heidemij N.V.(b)........... 1,824,963
60,100 Total Containment,
Inc.(b).................. 165,275
------------
1,990,238
------------
Precision Instruments & Related (0.3%):
129,300 Unit Instruments,
Inc.(b).................. 1,212,188
------------
Printing (0.4%):
57,800 Devon Group, Inc.(b)....... 1,647,300
------------
Real Estate Investment Trusts (3.8%):
68,200 Chelsea GCA Realty, Inc.... 2,344,375
91,500 Highwood Properties,
Inc...................... 3,202,500
125,900 Omega Healthcare Investors,
Inc...................... 3,965,850
60,500 RFS Hotel Investors,
Inc...................... 1,134,375
95,100 Shurgard Storage Centers,
Inc...................... 2,650,913
1 Starwood Lodging Trust..... 20
62,600 Walden Residential
Properties, Inc.......... 1,666,725
32,500 Winston Hotels, Inc........ 438,750
------------
15,403,508
------------
Retail -- Specialty Stores (1.3%):
134,300 AMRE, Inc.(b).............. 1,343
128,600 Finlay Enterprises,
Inc.(b).................. 1,896,850
153,450 Genovese Drug Stores,
Inc...................... 2,186,662
35,700 Old America Stores,
Inc.(b).................. 174,038
154,100 Sound Advice, Inc.(b)...... 260,044
235,300 Strouds, Inc.(b)........... 764,725
------------
5,283,662
------------
</TABLE>
Continued
-43-
<PAGE> 45
QUALIVEST FUNDS
SMALL COMPANY VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Savings & Loan Companies (2.9%):
124,700 Astoria Financial Corp..... $ 4,863,300
14,400 Pacific Crest Capital,
Inc.(b).................. 172,800
107,200 TR Financial Corp.......... 3,671,600
83,900 Webster Financial Corp..... 3,167,225
------------
11,874,925
------------
Semiconductors (0.0%):
8,200 Chips & Technologies,
Inc.(b).................. 111,725
------------
Shoes, Leather Goods, Clothing Accessories (0.3%):
94,000 Deckers Outdoor Corp.(b)... 634,500
74,200 K-Swiss, Inc., Class-S..... 769,825
------------
1,404,325
------------
Software & Computer Services (9.1%):
351,300 American Software,
Inc.(b).................. 2,437,135
121,805 Banctec, Inc.(b)........... 2,359,972
382,900 Borg-Warner Security
Corp.(b)................. 4,259,763
448,800 Borland International(b)... 2,861,100
134,500 Cimatron, Ltd.(b).......... 739,750
168,100 Consilium, Inc.(b)......... 1,050,625
273,200 Dataflex Corp.(b).......... 1,024,500
254,300 Fourth Shift Corp.(b)...... 1,064,881
130,400 Government Technology
Services(b).............. 749,800
186,400 GSE Systems, Inc.(b)....... 1,677,600
323,300 Learmonth & Burchett
Management Systems(b).... 1,656,912
232,100 Micrografx, Inc.(b)........ 1,160,500
161,600 Netrix Corp.(b)............ 868,600
207,200 Nimbus CD International,
Inc.(b).................. 2,279,200
189,350 Pomeroy Computer
Resources(b)............. 5,964,525
100,400 Triad Systems Corp.(b)..... 934,975
430,300 Triple(b).................. 1,613,625
210,200 Tro Learning, Inc.(b)...... 2,259,650
76,700 Truevision, Inc.(b)........ 258,862
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Software & Computer Services, Continued:
73,600 Visual Technology Number
Nine(b).................. $ 395,600
70,900 Wonderware Corp.(b)........ 779,900
------------
36,397,475
------------
Steel (1.6%):
52,300 Commercial Metals Co....... 1,523,238
105,200 Kentucky Electric Steel,
Inc.(b).................. 710,100
169,600 Northwest Pipe Co.(b)...... 3,264,800
555,700 Republic Engineered Steels,
Inc.(b).................. 1,111,400
------------
6,609,538
------------
Technology (1.2%):
97,600 Bell & Howell Holdings
Co.(b)................... 2,196,000
172,100 MacNeal-Schwendler Corp.... 1,570,413
169,000 Plasma-Therm, Inc.(b)...... 908,375
------------
4,674,788
------------
Telecommunications (1.7%):
184,300 Comdial Corp.(b)........... 1,566,550
287,400 Olicom(b).................. 5,424,675
------------
6,991,225
------------
Telecommunication Equipment (0.4%):
62,000 Superior Telecom,
Inc.(b).................. 1,488,000
------------
Textile Manufacturing (0.3%):
22,800 Culp, Inc.(b).............. 367,650
53,800 Hampshire Group, Ltd.(b)... 726,300
------------
1,093,950
------------
Toys & Bicycles Manufacturing (0.4%):
118,900 Huffy Corp................. 1,694,325
------------
Transportation -- Air (0.4%):
26,030 UST Corp.(b)............... 471,793
143,200 World Airways, Inc.(b)..... 1,288,800
------------
1,760,593
------------
</TABLE>
Continued
-44-
<PAGE> 46
QUALIVEST FUNDS
SMALL COMPANY VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Transportation -- Marine (0.2%):
101,200 Anangel American
Shipholdings............. $ 872,850
36,100 B & H Ocean Carriers,
Ltd.(b).................. 117,325
------------
990,175
------------
Transportation Leasing & Trucking (2.1%):
50,000 Simon Transportation
Services, Inc. (b)....... 787,500
279,900 Team Rental Group,
Inc.(b).................. 7,557,300
------------
8,344,800
------------
Utilities -- Electric (4.2%):
929,020 Tuscon Electric Power
Co.(b)................... 15,096,575
245,300 El Paso Electric Co.(b).... 1,778,425
------------
16,875,000
------------
Video Tape Rental Services (0.3%):
189,700 Video Update, Inc.(b)...... 806,225
68,600 West Coast Entertainment
Corp.(b)................. 565,950
------------
1,372,175
------------
Total Common Stocks 383,546,334
------------
CONVERTIBLE BONDS (1.6%):
Drug Stores (0.2%):
$ 740,000 Drug Emporium, Inc., 7.75%,
10/1/14.................. 630,850
------------
Electrical Equipment (0.1%):
500,000 Magnetek, Inc., 8.00%,
9/15/01.................. 523,750
------------
Environmental Control (0.2%):
1,059,000 Air & Water Technologies
Corp., 8.00%, 5/15/15.... 926,625
------------
Financial Services (0.2%):
710,000 Pioneer Financial Services,
Inc., 6.50%, 4/1/03...... 977,137
------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
CONVERTIBLE BONDS, CONTINUED:
Health Care (0.4%):
$ 1,695,000 Theratx, Inc., 8.00%,
2/1/02................... $ 1,565,756
------------
Real Estate Investment Trust (0.1%):
382,000 Maxxim Medical, Inc.,
6.75%, 3/1/03............ 380,569
------------
Software & Computer Services (0.4%):
1,620,000 Recognition International,
Inc., 7.25%, 4/15/11..... 1,494,450
------------
Total Convertible Bond 6,499,137
------------
CORPORATE BONDS (1.2%):
Aerospace (0.6%):
1,910,000 Titan Corp., 8.25%,
11/1/03.................. 2,225,150
------------
Industrial Goods & Services (0.6%):
1,120,000 Complete Management, Inc.,
8.00%, 8/15/03........... 1,183,000
440,000 Complete Management, Inc.,
8.00%, 12/15/03.......... 445,500
1,000,000 MacNeal-Schwendler Corp.,
7.88%, 8/18/04........... 960,000
------------
2,588,500
------------
Total Corporate Bonds 4,813,650
------------
WARRANTS (0.3%):
Retail-Specialty Stores (0.0%)
505 Sound Advice Warrants,
expire 6/14/99........... 0
------------
Transportation -- Marine (0.3%)
318,600 Nordic American Tanker
Shipping Warrants, expire
9/30/97.................. 1,274,400
------------
Total Warrants 1,274,400
------------
Total Investments, at value 396,133,521
------------
</TABLE>
Continued
-45-
<PAGE> 47
QUALIVEST FUNDS
SMALL COMPANY VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
REPURCHASE AGREEMENTS (1.9%):
$ 7,814,914 Merrill Lynch , 5.59%*,
2/3/97, (Collateralized
by $27,520,000 U.S
Treasury Strips, 11.25%,
2/15/15, market value
$7,972,269).............. $ 7,814,914
------------
Total Repurchase Agreements 7,814,914
------------
Total (Cost--$302,542,354)(a) $403,948,435
===========
</TABLE>
- ---------
Percentages indicated are based on net assets of $404,458,615.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $124,496,615
Unrealized depreciation... (23,090,534)
-----------
Net unrealized
appreciation............ $101,406,081
===========
</TABLE>
(b) Non-income producing security.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon bank prime rates or an index of
market interest rates. The rate reflected on the Schedule of Portfolio
Investments is the rate in effect at January 31, 1997.
See notes to financial statements.
-46-
<PAGE> 48
QUALIVEST FUNDS
LARGE COMPANY VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
COMMON STOCKS (95.2%):
Automotive Parts (0.7%):
32,200 A.O. Smith Corp............. $ 1,074,675
-----------
Automobiles (2.8%):
99,270 Ford Motor Co............... 3,189,049
19,600 General Motors Corp......... 1,156,400
-----------
4,345,449
-----------
Banks (6.1%):
23,000 Citicorp.................... 2,676,625
39,000 Corestates Financial
Corp...................... 1,940,250
10,400 First Union Corp............ 869,700
20,700 Mellon Bank Corp............ 1,544,737
10,000 NationsBank Corp............ 1,080,000
24,300 Standard Federal Bancorp.... 1,394,213
-----------
9,505,525
-----------
Beverages (0.5%):
95,300 Cott Corp. (b).............. 786,225
-----------
Brokerage Firms & Security Dealers (0.6%):
28,912 Bear Stearns Cos., Inc...... 867,360
-----------
Building Materials (2.2%):
51,600 Congoleum Corp., Class A
(b)....................... 735,300
53,000 Martin Marietta Corp........ 1,411,125
29,900 Schuller Corp............... 336,375
25,900 USG Corp. (b)............... 922,687
-----------
3,405,487
-----------
Chemicals (4.8%):
20,200 Air Products & Chemicals,
Inc....................... 1,441,775
47,400 Dexter Corp................. 1,433,850
56,400 Ecolab, Inc................. 2,086,800
8,400 E.I. du Pont de Nemours
Co........................ 920,850
24,600 Ferro Corp.................. 731,850
14,800 MallincKrodt Group, Inc..... 606,800
11,300 Wellman, Inc................ 199,163
-----------
7,421,088
-----------
Computers & Peripherals (3.2%):
21,500 Digital Equipment Corp.
(b)....................... 806,250
25,839 I.B.M. Corp................. 4,063,183
-----------
4,869,433
-----------
Construction (0.1%):
10,600 Continental Homes Holding
Corp...................... 227,900
-----------
Consumer Goods (0.7%):
38,100 American Greetings Corp..... 1,078,706
-----------
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Electronic & Electrical -- General (2.8%):
14,000 General Signal Corp......... $ 633,500
22,100 Thomas & Betts Corp......... 1,035,938
63,600 Wyle Electronics............ 2,623,500
-----------
4,292,938
-----------
Engineering, Industrial Construction (0.3%):
21,600 E G & G, Inc................ 459,000
-----------
Entertainment (1.5%):
39,700 ITT Corp. (b)............... 2,267,862
-----------
Financial Services (6.0%):
47,000 Advanta Corp., Class A...... 2,197,250
16,000 Beneficial Corp............. 1,076,000
43,000 Federal National Mortgage
Assoc..................... 1,698,500
20,000 First USA, Inc.............. 1,012,500
4,753 TransAmerica Corp........... 390,935
54,665 Travelers, Inc.............. 2,863,060
-----------
9,238,245
-----------
Food Distributors (0.5%):
11,900 Kroger Co. (b).............. 568,225
5,900 Sysco Corp.................. 193,962
-----------
762,187
-----------
Food Processing & Packaging (2.1%):
11,200 CPC International, Inc...... 861,000
71,700 Hudson Foods, Inc........... 1,434,000
26,500 Universal Food Corp......... 940,750
-----------
3,235,750
-----------
Forest Product (4.1%):
111,600 Boise Cascade Corp.......... 3,850,200
17,500 Chesapeake Corp............. 520,625
11,600 Mead Corp................... 652,500
36,550 Rayonier, Inc............... 1,366,056
-----------
6,389,381
-----------
Furniture (0.7%):
77,000 Furniture Brands
International, Inc. (b)... 1,097,250
-----------
Industrial Services (2.0%):
70,600 Millipore Corp.............. 3,018,150
-----------
Insurance (1.3%):
8,603 Conseco, Inc. (b)........... 632,321
26,900 Mid-Ocean Ltd............... 1,365,175
-----------
1,997,496
-----------
</TABLE>
Continued
-47-
<PAGE> 49
QUALIVEST FUNDS
LARGE COMPANY VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Manufacturing-Capital Goods (5.3%):
74,000 Albany International Corp.,
Class A................... $ 1,739,000
95,800 Greenbrier Cos., Inc........ 1,065,775
121,200 Kennametal, Inc............. 4,802,550
13,500 Pall Corp. (b).............. 302,063
5,310 Sequa Corp., Class A (b).... 210,409
-----------
8,119,797
-----------
Medical Services (7.4%):
46,350 Columbia/HCA Healthcare
Corp...................... 1,830,825
57,000 Foundation Health Corp.
(b)....................... 1,895,250
56,000 Health Systems
International, Inc. (b)... 1,449,000
246,000 Sun Healthcare Group, Inc.
(b)....................... 3,997,500
84,915 Tenet Healthcare Corp.
(b)....................... 2,292,705
-----------
11,465,280
-----------
Metals (0.8%):
29,894 Cleveland Cliffs, Inc....... 1,300,389
-----------
Mobile Homes & Manufactured Housing (1.9%):
111,900 Fleetwood Enterprises,
Inc....................... 2,993,325
-----------
Office Equipment & Supplies (0.4%):
26,600 Moore & Associates, Ltd..... 551,950
-----------
Oil & Gas Exploration, Production, Services (1.3%):
23,000 Ashland, Inc................ 991,875
9,401 Union Pacific Resources..... 266,753
36,000 Union Texas Petroleum
Holdings., Inc............ 765,000
-----------
2,023,628
-----------
Oil -- Integrated Companies (2.5%):
8,000 Atlantic Richfield Co....... 1,058,000
58,800 Occidental Petroleum
Corp...................... 1,499,400
30,011 UNOCAL Corp................. 1,264,213
-----------
3,821,613
-----------
Oilfield Equipment & Services (1.9%):
162,000 McDermott International,
Inc....................... 2,956,500
-----------
Pharmaceuticals (3.6%):
25,400 Astra (b)................... 1,216,025
53,600 Pharmacia & Upjohn, Inc..... 1,996,600
30,000 Schering-Plough............. 2,268,750
-----------
5,481,375
-----------
Photography (0.5%):
9,600 Eastman Kodak Co............ 832,800
-----------
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Pollution Control Services & Control (0.6%):
30,000 Browning-Ferris Industries,
Inc....................... $ 975,000
-----------
Publishing, Except Newspapers (0.2%):
8,800 Reader's Digest Assoc.,
Class B................... 312,400
-----------
Railroad & Railroad Holding Companies (1.4%):
33,500 CSX Corp.................... 1,624,750
9,200 Union Pacific Corp.......... 552,000
-----------
2,176,750
-----------
Real Estate Investment Trusts (0.9%):
35,300 Meditrust Shares Beneficial
Interest.................. 1,359,050
-----------
Restaurants (1.1%):
74,000 Wendy's International,
Inc....................... 1,628,000
-----------
Retail (4.5%):
42,000 Dillard Department Stores,
Inc....................... 1,254,750
53,000 Federated Department Stores
(b)....................... 1,742,375
23,000 J.C. Penney Co., Inc........ 1,089,625
13,400 May Department Stores....... 596,300
56,400 Rite Aid.................... 2,256,000
-----------
6,939,050
-----------
Retail -- Specialty Stores (3.9%):
140,000 Intimate Brands, Inc........ 2,485,000
44,386 The Limited, Inc............ 760,110
100,000 Waban, Inc. (b)............. 2,712,500
-----------
5,957,610
-----------
Semiconductors (2.5%):
38,900 Advanced Micro Devices, Inc.
(b)....................... 1,361,500
65,400 National Semiconductor Corp.
(b)....................... 1,814,850
7,968 Texas Instruments, Inc...... 624,492
-----------
3,800,842
-----------
Software & Computer Services (0.2%):
43,300 Intergraph Corp. (b)........ 346,400
-----------
Telecommunications (0.6%):
37,000 Comsat Corp................. 999,000
-----------
Textile Manufacturing (0.1%):
3,600 Springs Industries, Inc..... 152,100
-----------
Tobacco & Tobacco Products (1.6%):
21,000 Philip Morris Cos., Inc..... 2,496,375
-----------
Tools & Hardware Manufacturing (0.9%):
43,200 Black & Decker Corp......... 1,447,200
-----------
</TABLE>
Continued
-48-
<PAGE> 50
QUALIVEST FUNDS
LARGE COMPANY VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Utilities -- Electric (2.3%):
55,000 Houston Industries, Inc..... $ 1,244,375
29,900 Minnesota Power & Light..... 855,887
62,000 Peco Energy Co.............. 1,426,000
-----------
3,526,262
-----------
Utilities -- Natural Gas (0.9%):
31,700 Panenergy Corp.............. 1,462,163
-----------
Utilities -- Telecommunications (4.3%):
65,000 AT&T Corp................... 2,559,375
47,000 SBC Communications, Inc..... 2,579,125
35,000 Sprint Corp. (b)............ 1,426,250
-----------
6,564,750
-----------
Utilities -- Telephones (0.6%):
31,000 Tele Danmark A/S ADR (b).... 918,375
-----------
Total Common Stocks 146,948,091
-----------
CONVERTIBLE PREFERRED STOCKS (0.2%):
Tobacco & Tobacco Products (0.2%):
56,700 RJR Nabisco................. 375,638
-----------
Total Convertible Preferred Stocks 375,638
-----------
Total Investments, at value 147,323,729
===========
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
WARRANTS (0.0%):
Radio & Television (0.0%):
2,617 Sound Advice Warrants,
Expire 06/14/99........... $ 0
-----------
REPURCHASE AGREEMENTS (4.3%):
$6,598,375 Merrill Lynch, 5.59%*,
2/3/97 (Collateralized by
23,235,000 U.S. Treasury
Strips, 11.25%, 2/15/15,
market value
$6,730,947)............... 6,598,375
-----------
Total Repurchase Agreements 6,598,375
-----------
Total (Cost--$121,245,314)(a) $153,922,104
===========
</TABLE>
- ---------
Percentages indicated are based on net assets of $154,340,169.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.... $34,767,654
Unrealized depreciation.... (2,090,864)
----------
Net unrealized
appreciation............. $32,676,790
==========
</TABLE>
(b) Non-income producing security.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon bank prime rates or an index of
market interest rates. The rate reflected on the Schedule of Portfolio
Investments is the rate in effect at January 31, 1997.
<TABLE>
<S> <C>
ADR American Depository Receipt
PLC Private Limited Company
</TABLE>
See notes to financial statements.
-49-
<PAGE> 51
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ------- ------------------------------- ------------
<C> <S> <C>
COMMON STOCKS (96.7%):
Advertising (0.1%):
3,700 Interpublic Group Cos., Inc.... $ 182,688
------------
Aerospace (0.7%):
18,500 Boeing Co...................... 1,981,813
------------
Aerospace/Defense (1.2%):
5,100 Lockheed Martin Corp........... 469,200
11,400 McDonnell Douglas Corp......... 766,650
1,500 Northrop Corp.................. 117,188
9,700 Rockwell International Corp.... 637,775
9,800 Textron, Inc................... 954,275
8,500 TRW, Inc....................... 431,375
------------
3,376,463
------------
Agriculture & Livestock (0.1%):
5,600 Pioneer Hi-Bred International,
Inc.......................... 377,300
------------
Aircraft & Aircraft Parts (Aviation) (1.1%):
9,000 AlliedSignal, Inc.............. 632,250
4,200 General Dynamics Corp.......... 296,625
29,900 United Technologies Corp....... 2,085,525
------------
3,014,400
------------
Air Freight (0.1%):
5,100 Federal Express Corp. (b)...... 261,375
4,900 Navistar International Corp.
(b).......................... 49,000
------------
310,375
------------
Airlines (0.3%):
1,700 AMR Corp. (b).................. 136,850
6,100 Delta Airlines................. 481,900
100 Southwest Airlines............. 2,200
7,700 US Air Group, Inc. (b)......... 160,738
------------
781,688
------------
Aluminum (0.3%):
100 Alcan Aluminum Ltd............. 3,525
10,300 Aluminum Co. of America........ 710,700
100 Reynolds Metals Co............. 6,038
------------
720,263
------------
Apparel (0.1%):
100 CVS Corp....................... 4,325
4,900 Liz Claiborne, Inc............. 206,413
------------
210,738
------------
Automobiles (1.7%):
97,600 Chrysler Corp.................. 3,403,800
4,200 Echlin, Inc.................... 126,525
9,200 Ford Motor Co.................. 295,550
9,200 General Motors Corp............ 542,800
5,200 PACCAR, Inc.................... 339,950
------------
4,708,625
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Automotive Parts (0.3%):
100 Autozone, Inc. (b)............. $ 2,162
6,600 Dana Corp...................... 215,325
5,300 Eaton Corp..................... 371,000
7,300 Genuine Parts Co............... 322,113
------------
910,600
------------
Banks (1.8%):
20,300 BankAmerica Corp............... 2,265,988
10,200 Bank of Boston Corp............ 726,750
18,600 First Union Corp............... 1,555,425
7,200 KeyCorp........................ 377,100
------------
4,925,263
------------
Banks -- Money Centers (4.8%):
26,300 Bank of New York Co., Inc...... 963,238
100 Bankers Trust New York......... 8,500
13,200 Barnett Banks, Inc............. 580,800
42,600 Chase Manhattan Corp........... 3,940,500
15,000 Citicorp....................... 1,745,625
100 Corestates Financial Corp...... 4,975
11,900 First Chicago NDB Corp......... 679,788
3,800 Golden West Financial Corp.,
Delaware..................... 255,075
100 Great Western Financial
Corp......................... 3,162
12,500 J.P. Morgan & Co., Inc......... 1,287,500
22,500 MBNA Corp...................... 776,250
2,300 National City Corp............. 104,362
12,200 NationsBank Corp............... 1,317,600
11,400 Norwest Corp................... 542,925
100 PNC Financial Corp............. 3,975
3,800 Republic New York Corp......... 336,775
15,000 Suntrust Banks, Inc............ 750,000
------------
13,301,050
------------
Banks -- Outside Money Center (0.9%):
29,100 Banc One Corp.................. 1,320,413
1,100 Fifth Third Bancorp............ 85,113
100 First Bank Systems, Inc........ 7,600
2,400 Fleet Financial Group, Inc..... 129,600
9,000 Mellon Bank Corp............... 671,625
6,800 U.S. Bancorp................... 309,825
</TABLE>
Continued
-50-
<PAGE> 52
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Banks -- Outside Money Center, Continued:
100 Wachovia Corp.................. $ 5,762
100 Wells Fargo & Co............... 30,475
------------
2,560,413
------------
Beverages (2.7%):
14,000 Anheuser-Busch Co., Inc........ 595,000
3,000 Brown Forman Corp., Class B.... 132,000
111,200 Coca-Cola Co................... 6,435,700
2,500 Coors Adolph Co., Class B...... 46,562
10,400 PepsiCo, Inc................... 362,700
100 Seagram Co., Ltd............... 3,963
------------
7,575,925
------------
Brokerage Firms & Security Dealers (0.5%):
11,100 Merrill Lynch & Co., Inc....... 935,175
7,300 Salomon, Inc................... 403,325
------------
1,338,500
------------
Building Materials (0.1%):
100 Masco Corp..................... 3,450
3,500 Owens Corning (b).............. 162,750
------------
166,200
------------
Chemicals -- General (2.8%):
7,500 Air Products & Chemicals,
Inc.......................... 535,313
16,300 Dow Chemical Co................ 1,257,138
19,700 E.I. Du Pont De Nemours Co..... 2,159,613
100 FMC Corp. (b).................. 7,012
6,900 Hercules, Inc.................. 304,462
39,500 Monsanto Co.................... 1,496,062
10,800 Morton International, Inc...... 438,750
4,500 Nalco Chemical Co.............. 159,750
11,200 Praxair, Inc................... 519,400
8,600 Rohm & Haas Co................. 705,200
2,400 Sigma Aldrich Corp............. 76,200
100 W.R. Grace & Co................ 4,975
------------
7,663,875
------------
Chemicals -- Specialty (0.8%):
14,000 Avery Dennison Corp............ 512,750
5,200 Eastman Chemical Co............ 284,050
4,400 Ecolab, Inc.................... 162,800
9,700 Engelhard Corp................. 192,788
4,200 Great Lakes Chemical Corp...... 181,125
5,000 Mallinckrodt Group, Inc........ 205,000
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Chemicals -- Specialty, Continued:
12,700 PPG Industries, Inc............ $ 679,450
100 Union Carbide Corp............. 4,538
------------
2,222,501
------------
Coal (0.0%):
500 Nacco Industries, Inc., Class
A............................ 26,188
------------
Computers (1.1%):
12,200 Dell Computer Corp............. 806,725
28,100 Seagate Technology, Inc........ 1,447,150
11,700 3Com Corp...................... 785,363
------------
3,039,238
------------
Computers & Peripherals (3.3%):
1,300 Amdahl Corp. (b)............... 14,950
100 Apple Computer, Inc............ 1,663
2,700 Cabletron Systems (b).......... 93,825
4,600 Ceridian Corp. (b)............. 173,650
22,900 Cisco Systems, Inc. (b)........ 1,597,275
2,600 Data General Corp. (b)......... 49,075
100 Digital Equipment Corp. (b).... 3,750
4,800 EMC Corp....................... 181,800
52,500 Hewlett Packard Co............. 2,762,813
26,400 I.B.M. Corp.................... 4,151,400
100 Shared Medical Systems Corp.... 4,719
100 Silicon Graphics, Inc. (b)..... 2,737
100 Tandem Computers, Inc. (b)..... 1,387
100 Unisys Corp. (b)............... 687
------------
9,039,731
------------
Construction (0.1%):
2,000 Centex Corp.................... 78,000
2,700 Foster Wheeler Corp............ 104,288
100 Pulte Corp..................... 3,312
------------
185,600
------------
Consumer Credit (0.0%):
200 Dean Witter Discover & Co...... 7,625
------------
Consumer Goods (0.1%):
5,000 American Greetings Corp........ 141,562
2,600 Jostens, Inc................... 53,625
------------
195,187
------------
Consumer Services (0.1%):
6,500 CUC International, Inc. (b).... 160,875
------------
</TABLE>
Continued
-51-
<PAGE> 53
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Container -- Metal, Glass, Paper, Plastic (0.5%):
2,000 Ball Corp...................... $ 51,250
7,000 Bemis, Inc..................... 286,125
7,000 Crown Cork & Seal, Inc......... 402,500
10,500 Newell Co...................... 346,500
10,000 Rubbermaid, Inc................ 231,250
100 Stone Container Corp........... 1,350
------------
1,318,975
------------
Cosmetics & Related (1.2%):
100 Alberto Culver Co., Class B.... 5,213
9,000 Avon Products, Inc............. 564,750
28,500 Gillette Co.................... 2,322,750
7,400 International Flavors &
Fragrances, Inc.............. 328,375
------------
3,221,088
------------
Department Stores (0.3%):
15,500 J. C. Penney................... 734,312
1,700 Mercantile Stores, Inc......... 83,300
------------
817,612
------------
Developers -- Real Estate (0.1%):
15,000 Entergy Corp................... 403,125
100 Kaufman & Broad Home Corp...... 1,412
------------
404,537
------------
Diversified -- Conglomerates (0.5%):
8,600 Cognizant Corp................. 276,275
23,100 Corning Glass Works............ 822,937
100 Micron Technology, Inc......... 3,475
400 Minnesota Mining &
Manufacturing Co............. 34,100
3,200 National Service Industries,
Inc.......................... 122,800
100 Tenneco, Inc................... 4,000
6,900 Whitman Corp................... 158,700
------------
1,422,287
------------
Drug Stores (0.0%):
2,700 Longs Drug Stores Corp......... 65,475
------------
Electrical Equipment (3.1%):
15,000 Emerson Electric Co............ 1,481,250
58,000 General Electric Co............ 5,974,000
100 General Instrument Corp. (b)... 2,487
8,600 Honeywell, Inc................. 620,275
2,800 Thomas & Betts Corp............ 131,250
3,600 WW Grainger, Inc............... 278,100
100 Westinghouse Electric Corp..... 1,838
------------
8,489,200
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Electrical Utility (0.2%):
14,900 Peco Energy Co................. $ 342,700
6,800 Union Electric Co.............. 258,400
------------
601,100
------------
Electronic Computing Equipment (0.9%):
28,900 Compaq Computer Corp. (b)...... 2,510,687
------------
Electronic & Electrical -- General (1.5%):
14,700 AMP, Inc....................... 599,025
7,300 Cooper Industries.............. 314,813
3,400 General Signal Corp............ 153,850
3,700 Harris Corp.................... 281,662
31,800 Motorola, Inc.................. 2,170,350
3,400 Raychem Corp................... 294,525
700 Raytheon Co.................... 32,113
4,900 Scientific Atlanta, Inc........ 93,100
2,000 Tektronix, Inc................. 99,250
100 Texas Instruments, Inc......... 7,837
------------
4,046,525
------------
Energy (0.2%):
23,100 Union Pacific Resources Group,
Inc.......................... 655,462
------------
Engineering, Industrial Construction (0.0%):
100 E G & G, Inc................... 2,125
100 Fluor Corp..................... 7,112
------------
9,237
------------
Entertainment (1.1%):
1,700 Harrah's Entertainment, Inc.
(b).......................... 33,150
5,800 Hasbro, Inc.................... 229,100
100 ITT Corp. (b).................. 5,713
2,500 King World Productions, Inc.
(b).......................... 97,813
35,400 The Walt Disney Co............. 2,593,050
------------
2,958,826
------------
Environmental Control (0.1%):
19,100 Laidlaw, Inc., Class B......... 248,300
------------
Financial Services (3.4%):
27,700 American Express Co............ 1,727,788
25,800 Automatic Data Processing,
Inc.......................... 1,067,475
3,600 Beneficial Corp................ 242,100
7,300 Comerica, Inc.................. 417,012
</TABLE>
Continued
-52-
<PAGE> 54
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Financial Services, Continued:
11,400 Dun & Bradstreet Corp.......... $ 273,600
32,300 Federal National Mortgage
Assoc........................ 1,275,850
12,200 First Data Corp................ 439,200
100 Green Tree Financial Corp...... 3,887
6,600 Household International,
Inc.......................... 654,225
4,000 MGIC Investment Corp........... 295,000
10,200 Morgan Stanley Group, Inc...... 582,675
3,000 TransAmerica Corp.............. 246,750
39,800 Travelers, Inc................. 2,084,525
------------
9,310,087
------------
Food Distributors (0.6%):
17,100 Albertsons, Inc................ 598,500
100 Fleming Cos., Inc.............. 1,612
100 Great Atlantic & Pacific Tea
Co., Inc..................... 3,125
8,000 Kroger Co. (b)................. 382,000
12,000 Sysco Corp..................... 394,500
10,100 Winn Dixie Stores, Inc......... 308,050
------------
1,687,787
------------
Food Processing & Packaging (2.4%):
37,000 Archer Daniels Midland Co...... 730,750
22,400 Campbell Soup Co............... 1,859,200
10,700 Cinergy Corp................... 369,150
14,700 ConAgra, Inc................... 742,350
13,700 CPC International, Inc......... 1,053,188
3,600 General Mills.................. 243,900
10,400 Hershey Foods Corp............. 439,400
100 H.J. Heinz Co.................. 4,025
100 Kellogg Co..................... 6,963
100 Quaker Oats Co................. 3,837
100 Ralston-Purina Group........... 7,862
32,400 Sara Lee Corp.................. 1,279,800
100 Wrigley, William Jr., Co....... 5,812
------------
6,746,237
------------
Forest Products -- Lumber, Paper (1.1%):
100 Boise Cascade Corp............. 3,450
100 Champion International Corp.... 4,188
100 Georgia Pacific Corp........... 7,363
100 IKON Office Solutions, Inc..... 4,413
100 International Paper Co......... 4,087
5,900 James River Corp............... 189,537
15,700 Kimberly Clark Corp............ 1,530,750
100 Louisiana Pacific Corp......... 2,075
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Forest Products -- Lumber, Paper, Continued:
3,600 Mead Corp...................... $ 202,500
1,900 Potlatch Corp.................. 80,750
100 Temple Inland, Inc............. 5,525
100 Union Camp Corp................ 4,737
600 Westvaco Corp.................. 17,550
16,000 Weyerhauser Co................. 728,000
2,300 Willamette Industries, Inc..... 144,612
------------
2,929,537
------------
Gold & Silver Mining (0.0%):
100 Echo Bay Mines, Ltd............ 644
100 Homestake Mining Co............ 1,412
100 Placer Dome, Inc............... 2,038
------------
4,094
------------
Health Care (1.3%):
10,800 Humana, Inc. (b)............... 205,200
50,100 Johnson & Johnson, Inc......... 2,887,012
11,500 United Healthcare Corp......... 560,625
------------
3,652,837
------------
Heavy Machinery (1.2%):
1,400 Baker Hughes, Inc.............. 54,600
20,800 Caterpillar Tractor, Inc....... 1,614,600
17,600 Deere & Co..................... 752,400
3,300 Harnischfeger Industries,
Inc.......................... 146,438
100 Ingersoll-Rand Co.............. 4,562
100 Thermo Electron................ 3,412
15,700 Tyco Laboratories, Inc......... 896,863
------------
3,472,875
------------
Hospital & Nursing Equipment (0.3%):
15,500 Becton Dickinson & Co.......... 763,375
3,800 C.R., Bard, Inc................ 107,350
------------
870,725
------------
Hotels & Motels (0.4%):
6,000 HFS, Inc....................... 420,000
5,500 Hilton Hotels Corp............. 156,750
10,700 Marriott International, Inc.... 568,438
------------
1,145,188
------------
Household Goods (0.2%):
2,800 Armstrong World Industries,
Inc.......................... 198,800
6,800 Maytag Corp.................... 139,400
4,100 Tupperware Corp................ 192,187
100 Whirlpool Corp................. 5,088
------------
535,475
------------
</TABLE>
Continued
-53-
<PAGE> 55
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Industrial Services (0.0%):
100 Dover Corp..................... $ 4,950
2,900 Millipore Corp................. 123,975
------------
128,925
------------
Insurance -- Broker (0.1%):
3,800 Marsh & McLennan Cos., Inc..... 409,450
------------
Insurance -- Fire, Marine, Casualty (0.1%):
8,400 SAFECO Corp.................... 319,200
100 USF&G Corp..................... 2,113
------------
321,313
------------
Insurance -- Life (0.7%):
7,100 Aetna, Inc..................... 560,900
100 AON Corp....................... 6,463
5,200 Conseco, Inc................... 382,200
100 Jefferson Pilot Corp........... 5,900
7,000 Lincoln National Corp.......... 375,375
6,300 Providian Corp................. 339,412
4,700 Torchmark Corp................. 243,225
2,300 US Life Corp................... 94,300
------------
2,007,775
------------
Insurance -- Multi-Line (0.9%):
10,500 American General Corp.......... 418,688
5,800 CIGNA Corp..................... 879,425
11,200 ITT Hartford Group, Inc........ 821,800
3,900 Loews Corp..................... 385,612
------------
2,505,525
------------
Insurance -- Property, Casualty, Health & Other (1.7%):
15,600 Allstate Corp.................. 1,025,700
16,100 American International Group,
Inc.......................... 1,950,113
11,700 Chubb Corp..................... 637,650
100 General Re Corp................ 16,150
3,900 MBIA, Inc...................... 374,887
5,600 St. Paul Cos., Inc............. 350,000
3,500 UNUM Corp...................... 264,687
------------
4,619,187
------------
Leisure -- Recreation, Gaming (0.1%):
13,000 Brunswick Corp................. 326,625
100 Caliber System, Inc............ 2,200
------------
328,825
------------
Loan Companies (0.4%):
33,500 Federal Home Loan Mortgage
Corp......................... 1,013,375
------------
Machine Tools (0.2%):
4,900 Case Corp...................... 259,700
2,700 Cincinnati Milacron, Inc....... 62,100
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Machine Tools, Continued:
6,200 Cyprus Amax Minerals Co........ $ 138,725
2,200 Giddings & Lewis, Inc.......... 28,600
------------
489,125
------------
Machinery (0.0%):
800 Applied Materials (b).......... 39,500
------------
Manufacturing -- Capital Goods (0.5%):
1,900 Briggs & Stratton Corp......... 85,738
3,100 Crane Co....................... 102,300
2,600 Cummins Engine, Inc............ 136,825
7,000 Illinois Tool Works, Inc....... 571,375
7,700 Pall Corp...................... 172,287
5,000 Parker-Hannifin Corp........... 215,625
3,800 Trinova Corp................... 146,300
------------
1,430,450
------------
Manufacturing -- Miscellaneous (0.1%):
7,900 ITT Industries, Inc............ 199,475
------------
Medical Services (1.1%):
100 Baxter International, Inc...... 4,613
6,700 Beverly Enterprises, Inc.
(b).......................... 97,150
13,800 Boston Scientific Corp. (b).... 941,850
36,400 Columbia/HCA Healthcare
Corp......................... 1,437,800
100 HealthSouth Corp............... 4,362
4,200 Manor Care, Inc................ 107,100
16,600 Tenet Healthcare Corp. (b)..... 448,200
------------
3,041,075
------------
Medical Supplies (0.6%):
3,700 Bausch & Lomb, Inc............. 125,337
7,700 Biomet, Inc.................... 119,350
1,700 Guidant Corp................... 94,775
14,100 Medtronic, Inc................. 965,850
5,400 St. Jude Medical, Inc. (b)..... 204,525
4,300 U.S. Surgical Corp............. 172,538
------------
1,682,375
------------
Metals -- Fabrication (0.2%):
2,900 Asarco, Inc.................... 79,750
100 Barrick Gold Corp.............. 2,688
15,100 Battle Mountain Gold Co........ 98,150
</TABLE>
Continued
-54-
<PAGE> 56
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Metals -- Fabrication, Continued:
100 Freeport McMoran Copper & Gold,
Inc.......................... $ 2,875
3,700 Harcourt General, Inc.......... 167,425
100 Inco, Ltd...................... 3,387
4,300 Phelps Dodge Corp.............. 300,462
100 Santa Fe Pacific Gold Corp..... 1,538
------------
656,275
------------
Metal & Mineral Production (0.1%):
6,700 Newmont Mining Corp............ 267,162
------------
Mobile Homes & Manufactured Housing (0.0%):
4,800 Fleetwood Enterprises, Inc..... 128,400
------------
Newspapers (0.7%):
6,400 Dow Jones & Co., Inc........... 253,600
16,600 Gannett Co., Inc............... 1,271,975
1,400 Knight-Ridder, Inc............. 53,725
6,600 New York Times Co., Class A.... 253,275
1,100 Tribune Co..................... 42,075
------------
1,874,650
------------
Office Equipment & Supplies (0.4%):
6,700 Moore & Associates, Ltd........ 139,025
15,600 Pitney Bowes, Inc.............. 898,950
100 Xerox Corp..................... 5,862
------------
1,043,837
------------
Oil & Gas Exploration, Production, & Services (0.6%):
100 Amerada Hess Corp.............. 5,900
1,300 Ashland, Inc................... 56,062
16,800 Burlington Resources, Inc...... 835,800
1,400 Eastern Enterprises............ 46,025
17,100 Enron Corp..................... 705,375
100 Enserch Corp................... 2,275
1,800 Helmerich & Payne, Inc......... 87,075
100 Louisiana Land & Exploration
Co........................... 5,625
------------
1,744,137
------------
Oil & Gas Production (0.7%):
3,200 Kerr McGee Corp................ 220,000
2,300 Peoples Energy Corp............ 76,475
35,200 Phillips Petroleum Co.......... 1,553,200
5,800 Rowan Cos., Inc. (b)........... 146,450
6,200 Santa Fe Energy Resources...... 92,225
100 Sun Co., Inc................... 2,637
------------
2,090,987
------------
Oil -- Integrated Companies (6.4%):
26,300 Amoco Corp..................... 2,288,100
10,800 Atlantic Richfield Co.......... 1,428,300
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Oil -- Integrated Companies, Continued:
40,500 Chevron Corp................... $ 2,688,188
36,700 Exxon Corp..................... 3,803,038
100 Mobil Corp..................... 13,125
22,100 Occidental Petroleum Corp...... 563,550
1,800 Oneok, Inc..................... 53,325
7,100 Oryx Energy Co. (b)............ 172,175
3,200 Pennzoil Co.................... 199,600
19,900 Royal Dutch Petroleum Co....... 3,452,650
10,100 Texaco, Inc.................... 1,069,337
38,600 USX -- Marathon Group.......... 1,027,725
24,600 Unocal Corp.................... 1,036,275
------------
17,795,388
------------
Oilfield Equipment & Services (0.9%):
15,300 Dresser Industries, Inc........ 518,288
8,400 Halliburton Co................. 607,950
100 McDermott International,
Inc.......................... 1,825
9,700 Schlumberger Ltd............... 1,077,912
3,900 Western Atlas, Inc. (b)........ 264,712
200 Williams Cos., Inc............. 8,025
------------
2,478,712
------------
Paint, Varnishes, Enamels (0.0%):
100 Sherwin Williams Co............ 5,550
------------
Pharmaceuticals (7.0%):
52,600 Abbott Laboratories............ 2,860,125
4,400 Allergan, Inc.................. 155,650
100 ALZA Corp., Class A (b)........ 2,888
23,600 American Home Products Corp.... 1,495,650
5,600 Amgen, Inc. (b)................ 315,700
16,100 Bristol-Myers Squibb Co........ 2,044,700
16,600 Eli Lilly & Co................. 1,446,275
53,300 Merck & Co., Inc............... 4,836,975
9,200 Noram Energy Corp.............. 143,750
24,600 Pfizer, Inc.................... 2,284,725
19,700 Pharmacia & Upjohn, Inc........ 733,825
22,500 Schering-Plough................ 1,701,562
18,300 Warner-Lambert Co.............. 1,473,150
------------
19,494,975
------------
Photography (0.3%):
9,200 Eastman Kodak Co............... 798,100
2,600 Polaroid Corp.................. 114,400
------------
912,500
------------
</TABLE>
Continued
-55-
<PAGE> 57
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Pollution Control Services & Equipment (0.2%):
13,900 Browning-Ferris Industries,
Inc.......................... $ 451,750
3,900 Safety Kleen Corp.............. 62,887
100 WMX Technologies, Inc.......... 3,663
------------
518,300
------------
Precision Instruments & Related (0.2%):
2,900 Johnson Controls, Inc.......... 249,400
2,900 Perkin-Elmer Corp.............. 202,637
------------
452,037
------------
Printing (0.1%):
2,200 John H. Harland Co............. 64,075
1,900 Meredith Corp.................. 97,612
------------
161,687
------------
Publishing, Except Newspaper (0.3%):
5,500 Deluxe Corp.................... 169,125
6,700 McGraw Hill, Inc............... 333,325
10,100 R.R. Donnelley & Sons Co....... 315,625
100 Time Warner, Inc............... 3,850
------------
821,925
------------
Publishing Newspapers (0.1%):
6,700 Times Mirror Co., Class A...... 316,575
------------
Radio & Television (0.0%):
100 Comcast Corp., Special Class
A............................ 1,838
100 Tele-Communications, Class A
(b).......................... 1,331
100 Viacom, Inc., Class B (b)...... 3,425
------------
6,594
------------
Railroad & Railroad Holding Companies (0.5%):
5,400 Conrail, Inc................... 579,150
4,000 Norfolk & Southern Co.......... 354,500
9,800 Union Pacific Corp............. 588,000
------------
1,521,650
------------
Restaurants (0.7%):
10,600 Darden Restaurants, Inc........ 76,850
38,300 McDonald's Corp................ 1,742,650
8,800 Wendy's International , Inc.... 193,600
------------
2,013,100
------------
Retail (2.4%):
9,900 American Stores Co............. 415,800
29,000 Dayton Hudson Corp............. 1,091,125
400 Dillard Department Stores,
Inc.......................... 11,950
100 K-Mart Corp.................... 1,113
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Retail, Continued:
11,000 May Department Stores.......... $ 489,500
100 Nordstrom, Inc................. 3,712
15,800 Price/Costco, Inc. (b)......... 420,675
13,800 Rite Aid....................... 552,000
27,500 Sears & Roebuck Co............. 1,320,000
3,900 Tandy Corp..................... 176,475
16,600 Walgreen Co.................... 682,675
55,300 Wal-Mart Stores, Inc........... 1,313,375
9,000 Woolworth Corp. (b)............ 183,375
------------
6,661,775
------------
Retail -- Department Stores (0.0%):
3,600 Federated Department Stores
(b).......................... 118,350
------------
Retail -- Specialty Stores (1.1%):
100 Charming Shoppes, Inc. (b)..... 475
100 Circuit City Stores, Inc....... 3,513
2,900 Giant Food, Inc................ 95,700
21,800 Home Depot, Inc................ 1,079,100
11,800 Lowe's Cos., Inc............... 390,875
8,200 Pep Boys Manny, Moe & Jack..... 260,350
4,500 Super Value, Inc............... 138,937
26,300 The Gap, Inc................... 756,125
3,200 The Limited, Inc............... 54,800
5,300 TJX Cos., Inc.................. 210,675
100 Toys R Us, Inc. (b)............ 2,500
------------
2,993,050
------------
Rubber & Rubber Products (0.4%):
3,600 B.F. Goodrich, Inc............. 147,600
100 Cooper Tire & Rubber Co........ 2,025
15,200 Goodyear Tire & Rubber Co...... 828,400
------------
978,025
------------
Savings & Loan Companies (0.1%):
7,200 H F Ahmanson & Co.............. 270,000
------------
Semiconductors (2.6%):
9,300 Advanced Micro Devices, Inc.
(b).......................... 325,500
41,200 Intel Corp..................... 6,684,700
100 LSI Logic Corp. (b)............ 3,475
4,200 National Semiconductor Corp.
(b).......................... 116,550
------------
7,130,225
------------
Services (Non-Financial) (0.2%):
14,500 Service Corp. International.... 420,500
------------
</TABLE>
Continued
-56-
<PAGE> 58
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Shoes, Leather Goods, Clothing Accessories (0.5%):
19,500 Nike, Inc., Class B............ $ 1,323,562
3,800 Reebok International, Ltd...... 180,500
100 Stride Rite Corp............... 1,200
------------
1,505,262
------------
Soaps & Cleaning Agents (2.6%):
3,400 Clorox Co...................... 403,325
4,800 Colgate-Palmolive Co........... 464,400
40,600 Procter & Gamble Co............ 4,689,300
10,200 Unilever N. V.................. 1,677,900
100 U.S. West Media Group(b)....... 1,863
------------
7,236,788
------------
Software & Computer Services (2.4%):
100 Autodesk, Inc.................. 3,163
100 Bay Networks, Inc. (b)......... 2,175
12,400 Computer Assoc. International,
Inc.......................... 562,650
3,600 Computer Sciences Corp. (b).... 254,700
100 Intergraph Corp. (b)........... 800
40,700 Microsoft Corp. (b)............ 4,151,400
100 Novell, Inc. (b)............... 1,262
25,200 Oracle Corp. (b)............... 979,650
21,900 Sun Microsystems, Inc. (b)..... 695,325
------------
6,651,125
------------
Steel (0.2%):
5,300 Allegheny Teledyne, Inc........ 125,875
100 Armco, Inc. (b)................ 450
100 Bethlehem Steel Corp. (b)...... 850
100 Inland Steel Industries........ 1,913
100 Nucor Corp..................... 5,200
2,100 Timken Co...................... 108,150
5,700 USX-U. S. Steel Group.......... 180,263
6,100 Worthington Industries, Inc.... 118,187
------------
540,888
------------
Tax Return Preparation (0.1%):
7,000 H & R Block.................... 207,375
------------
Telecommunications (1.8%):
100 Airtouch Communications, Inc.
(b).......................... 2,588
100 Alltel Corp.................... 3,213
4,000 Andrew Corp. (b)............... 229,750
100 Bell Atlantic Corp............. 6,725
5,100 DSC Communications Corp. (b)... 114,750
47,100 Lucent Technologies, Inc....... 2,555,175
16,500 Northern Telecom Ltd........... 1,214,812
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Telecommunications, Continued:
12,200 Tellabs, Inc. (b).............. $ 502,487
14,000 Worldcom, Inc. (b)............. 351,750
------------
4,981,250
------------
Textile Manufacturing (0.2%):
5,200 Fruit of the Loom, Inc. (b).... 208,650
2,600 Russell Corp................... 83,850
1,300 Springs Industries, Inc........ 54,925
4,000 VF Corp........................ 266,000
------------
613,425
------------
Tobacco & Tobacco Products (1.8%):
1,500 American Brands................ 76,500
37,200 Philip Morris Cos., Inc........ 4,422,150
12,600 UST, Inc....................... 387,450
------------
4,886,100
------------
Tools & Hardware Manufacturing (0.1%):
100 Black & Decker Corp............ 3,350
4,200 Snap-On, Inc................... 156,450
5,800 Stanley Works.................. 220,400
------------
380,200
------------
Toys & Bicycles -- Manufacturing (0.2%):
18,200 Mattel, Inc.................... 511,875
------------
Transportation Leasing & Trucking (0.4%):
3,800 Burlington Northern Santa Fe... 332,500
16,900 CSX Corp....................... 819,650
1,900 Ryder Systems, Inc............. 54,150
------------
1,206,300
------------
Utilities -- Electric (1.6%):
12,200 American Electric Power Co..... 504,775
10,200 Carolina Power & Light Co...... 383,775
100 Central & South West Corp...... 2,525
8,200 Dominion Resources, Inc........ 324,925
400 DTE Energy Co.................. 12,550
100 Duke Power Co.................. 4,688
29,300 Edison International........... 626,288
100 FPL Group, Inc................. 4,425
16,200 General Public Utilities
Corp......................... 542,700
100 Houston Industries, Inc........ 2,263
19,400 Niagara Mohawk Power Corp...... 196,425
100 Northern States Power Co....... 4,612
10,200 Ohio Edison.................... 235,875
3,800 PacifiCorp..................... 80,750
3,900 P.P. & L. Resources, Inc....... 88,237
</TABLE>
Continued
-57-
<PAGE> 59
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Utilities -- Electric, Continued:
16,000 Public Service Enterprise
Group, Inc................... $ 438,000
6,100 Southern Co.................... 133,437
15,100 Texas Utilities Co............. 611,550
14,400 Unicom Corp.................... 340,200
------------
4,538,000
------------
Utilities -- Electric & Gas (0.5%):
10,000 Baltimore Gas & Electric....... 275,000
12,700 Consolidated Edison............ 393,700
27,600 Pacific Gas & Electric Co...... 627,900
------------
1,296,600
------------
Utilities -- Natural Gas (0.5%):
700 Coastal Corp................... 33,863
3,800 Columbia Gas Systems, Inc...... 247,475
2,500 Consolidated Natural Gas....... 139,062
3,300 Nicor, Inc..................... 119,212
900 Pacific Enterprises............ 27,113
10,200 Panenergy Corp................. 470,475
5,500 Sonat, Inc..................... 292,875
------------
1,330,075
------------
Utilities -- Telecommunications (5.4%):
72,300 AT&T Corp...................... 2,846,813
47,700 Ameritech Corp................. 2,850,075
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ------- ------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Utilities -- Telecommunications, Continued:
37,700 Bellsouth Corp................. $ 1,672,938
11,600 GTE Corp....................... 545,200
100 Frontier Corp.................. 2,187
19,300 MCI Telecommunications Corp.... 677,913
26,900 Nynex Corp..................... 1,361,812
28,800 Pacific Telesis Group.......... 1,130,400
51,400 SBC Communications, Inc........ 2,820,575
28,800 Sprint Corp.................... 1,173,600
100 U.S. West, Inc................. 3,288
------------
15,084,801
------------
Total Common Stocks 268,170,082
------------
INVESTMENT COMPANIES (2.8%):
320,801 SEI Index S&P 500 Fund......... 7,984,740
------------
Total Investment Companies 7,984,740
------------
Total Investments, at value 276,154,822
------------
REPURCHASE AGREEMENTS (0.4%):
1,047,230 Merrill Lynch, 5.59%*, 2/1/97,
(Collateralized by 3,690,000
U.S. Treasury Strips, 11.25%,
2/15/15, market value
$1,068,956).................. 1,047,203
------------
Total Repurchase Agreements 1,047,203
------------
Total (Cost--$215,582,151)(a) $277,202,025
============
</TABLE>
- ---------
Percentages are based on net assets of $277,423,461.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.... $63,745,818
Unrealized depreciation.... (2,125,944)
----------
Net unrealized
appreciation............. $61,619,874
==========
</TABLE>
(b) Non-income producing security.
* Variable rate security. Rate presented represents rate in effect at January
31, 1997. Date presented represents final maturity.
See notes to financial statements.
-58-
<PAGE> 60
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS (99.0%):
AUSTRALIA (2.9%):
Banking (0.5%):
45,747 National Australia Bank,
Ltd........................ $ 552,681
64,467 Westpac Banking Corp.,
Ltd........................ 368,537
------------
921,218
------------
Beverages (0.2%):
18,369 Coca-Cola Amatil, Ltd........ 181,317
66,122 Foster's Brewing Group,
Ltd........................ 133,559
------------
314,876
------------
Building Materials (0.2%):
35,275 Boral, Ltd................... 91,417
67,092 Pioneer International,
Ltd........................ 191,772
------------
283,189
------------
Business & Public Services (0.1%):
5,017 Brambles Industries, Ltd..... 85,277
------------
Chemicals (0.1%):
20,607 ICI Australia, Ltd........... 195,554
------------
Diversified (0.1%):
34,851 Southcorp Holdings, Ltd...... 114,758
------------
Energy (0.4%):
49,637 Broken Hill Proprietary Co.,
Ltd........................ 680,265
------------
Food Processing & Packaging (0.1%):
14,789 Burns Philp & Co., Ltd....... 25,363
132,370 Goodman Fielder, Ltd......... 161,433
------------
186,796
------------
Forest Products (0.1%):
18,082 Amcor, Ltd................... 111,639
------------
Merchandising (0.1%):
34,800 Coles Myer, Ltd.............. 131,566
------------
Metals -- Non Ferrous (0.4%):
42,821 M.I.M. Holdings, Ltd......... 57,119
79,243 Newcrest Mining, Ltd......... 303,213
49,725 North, Ltd................... 149,332
25,229 WMC, Ltd. (b)................ 154,995
------------
664,659
------------
Metals -- Steel (0.1%):
10,001 CRA, Ltd..................... 141,483
------------
Multi-Industry (0.1%):
26,547 CSR, Ltd..................... 88,628
34,457 Pacific Dunlop, Ltd.......... 82,994
------------
171,622
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Australia, Continued:
Oil & Gas Exploration, Production & Services (0.0%):
20,928 Santos, Ltd.................. $ 76,090
------------
Publishing & Broadcasting (0.3%):
68,696 News Corp., Ltd.............. 347,682
25,297 News Corp., Ltd.,
Preferred.................. 105,087
------------
452,769
------------
Real Estate (0.2%):
6,288 Lend Lease Corp., Ltd........ 108,558
93,856 Westfield Trust.............. 172,410
------------
280,968
------------
Total Australia 4,812,729
------------
AUSTRIA (0.4%):
Banking (0.1%):
1,386 Bank Austria................. 96,814
674 Creditanstalt-Bankverein..... 38,974
------------
135,788
------------
Beverages (0.1%):
1,785 Oesterreichische
Brau-Beteiligungs.......... 123,895
------------
Building Materials (0.0%):
256 Weinerberger
Baustoffindustrie.......... 47,593
------------
Energy (0.0%):
340 OMV.......................... 38,677
------------
Engineering & Construction (0.1%):
539 VA Technologie............... 80,865
------------
Insurance -- Property, Casualty, Health & Other (0.1%):
586 EA-Generali.................. 166,782
------------
Transportation -- Airlines (0.0%):
141 Austrian Airlines
Oesterreichische
Luftverskehrs (b).......... 21,411
------------
Transportation -- Misc. (0.0%):
772 Flughafen Wien............... 37,178
------------
Utilities (0.0%):
367 Oesterrichische
Elektrizitaetswirstchafts,
Class A.................... 26,782
------------
Total Austria 678,971
------------
BELGIUM (1.3%):
Banking (0.2%):
638 Generale de Banque........... 222,184
335 Kredietbank.................. 116,912
------------
339,096
------------
</TABLE>
Continued
-59-
<PAGE> 61
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Belgium, Continued:
Building Materials (0.1%):
1,285 Cimenteries CBR
Cementbedrijven............ $ 127,586
------------
Chemicals (0.1%):
799 Gevaert...................... 56,124
262 Solvay....................... 172,000
------------
228,124
------------
Energy (0.1%):
642 PetroFina.................... 226,907
------------
Industrial Goods & Services (0.0%):
87 Bekaert...................... 50,217
------------
Insurance -- Property, Casualty, Health & Other (0.2%):
1,132 Fortis....................... 190,233
20 Fortis, Strip VVPR (b)....... 10
334 Royale Belge................. 70,086
------------
260,329
------------
Metals -- Non Ferrous (0.1%):
1,128 Union Miniere (b)............ 79,568
------------
Multi-Industry (0.2%):
641 Group Bruxelles Lambert...... 86,157
624 Tractebel.................... 272,792
------------
358,949
------------
Retail (0.0%):
1,220 Delhaize-Le Lion............. 71,052
------------
Utilities -- Electric & Gas (0.2%):
1,624 Electrabel................... 382,655
300 Electrabel, Strip VVPR....... 285
------------
382,940
------------
Total Belgium 2,124,768
------------
BRITAIN (18.8%):
Aerospace/Defense (0.3%):
12,447 British Aerospace PLC........ 253,019
41,047 Rolls-Royce PLC.............. 157,867
------------
410,886
------------
Automotive Parts (0.3%):
17,687 BBA Group PLC................ 99,344
14,614 GKN PLC...................... 235,009
52,989 Lucas Industries PLC......... 175,774
11,389 T & N PLC.................... 30,297
------------
540,424
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Britain, Continued:
Banking (1.9%):
33,602 Abbey National PLC........... $ 422,432
34,113 Barclays PLC................. 636,588
54,711 HSBC Holdings PLC............ 1,275,226
24,494 HSBC Holdings PLC (75P)...... 586,224
29,056 Royal Bank of Scotland PLC... 267,268
------------
3,187,738
------------
Beverages (1.0%):
27,185 Bass PLC..................... 368,770
99,262 B.A.T Industries PLC......... 771,478
45,723 Guinness PLC................. 319,096
12,436 Scottish & Newcastle PLC..... 135,216
------------
1,594,560
------------
Building Materials (0.4%):
23,986 Blue Circle Industries PLC... 149,715
17,071 BPB Industries PLC........... 99,440
28,364 Pilkington PLC............... 67,498
26,360 Redland PLC.................. 144,256
6,560 RMC Group PLC................ 98,712
10,852 Williams Holdings PLC........ 56,432
12,614 Wolseley PLC................. 94,399
------------
710,452
------------
Business & Public Services (0.5%):
53,423 Reuters Holdings PLC......... 561,605
8,898 Thames Water PLC............. 96,605
13,383 United Utilities PLC......... 144,441
------------
802,651
------------
Chemicals (0.8%):
10,485 BOC Group PLC................ 159,453
13,327 Courtaulds PLC............... 82,330
19,118 Imperial Chemical Industries
PLC........................ 231,153
26,608 Zeneca Group PLC............. 769,428
------------
1,242,364
------------
Diversified (0.4%):
30,002 Granada Group PLC............ 431,262
27,114 Harrisons & Crosfield PLC.... 56,268
30,742 LASMO PLC.................... 124,146
19,148 Lonrho PLC................... 40,811
------------
652,487
------------
</TABLE>
Continued
-60-
<PAGE> 62
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Britain, Continued:
Electrical & Electronic (0.3%):
5,112 Electrocomponents PLC........ $ 36,454
74,653 General Electric Co. PLC..... 466,563
13,747 Racal Electronic PLC......... 59,370
------------
562,387
------------
Energy (1.3%):
188,715 British Petroleum Co. PLC.... 2,224,272
------------
Financial Services (1.1%):
185,761 Lloyds TSB Group PLC......... 1,430,364
6,695 Mercury Asset Management
Group PLC.................. 140,386
10,287 Provident Financial PLC...... 85,474
6,463 Schroders PLC................ 177,519
------------
1,833,743
------------
Food & Household (0.8%):
30,765 Associated British Foods
PLC........................ 235,905
25,072 Cadbury Schweppes PLC........ 188,836
11,191 EMI PLC...................... 217,176
10,971 Thorn PLC.................... 33,228
27,559 Unilever PLC................. 616,521
14,506 United Biscuits (Holdings)
PLC........................ 51,373
------------
1,343,039
------------
Forest Products (0.1%):
25,554 Arjo Wiggins Appleton PLC.... 66,954
16,437 Rexam PLC.................... 86,396
------------
153,350
------------
Health Care (1.7%):
105,147 Glaxo Wellcome PLC........... 1,684,141
80,517 SmithKline Beecham PLC....... 1,151,581
------------
2,835,722
------------
Industrial Goods & Services (0.0%):
9,462 BICC Group................... 43,366
------------
Insurance -- Property, Casualty, Health & Other (1.0%):
13,007 Commercial Union PLC......... 145,385
33,707 Guardian Royal Exchange
PLC........................ 149,623
57,207 Legal & General Group PLC.... 355,697
48,556 Prudential Corp. PLC......... 419,791
56,400 Royal & Sun Alliance
Insurance Group PLC........ 431,570
53,200 Sedgwick Group PLC (b)....... 111,255
------------
1,613,321
------------
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
COMMON STOCKS, CONTINUED:
Britain, Continued:
Leisure (0.2%):
32,446 Ladbroke Group PLC........... $ 119,068
20,954 Rank Organisation PLC........ 147,411
------------
266,479
------------
Machine Tools (0.1%):
9,762 Chubb Security PLC........... 50,060
10,467 Smiths Industries PLC........ 130,916
------------
180,976
------------
Manufacturing (0.1%):
11,909 IMI PLC...................... 76,528
10,129 Tate & Lyle PLC.............. 71,339
10,376 T I Group PLC................ 92,782
------------
240,649
------------
Materials (0.0%):
17,327 Caradon PLC.................. 73,304
------------
Merchandising (1.4%):
27,300 Boots Co. PLC................ 289,833
27,420 Great Universal Stores PLC... 284,955
24,251 Kingfisher PLC............... 262,903
72,408 Marks & Spencer PLC.......... 574,948
39,566 Safeway PLC.................. 242,840
61,940 Sainsbury PLC................ 320,110
63,876 Sears PLC.................... 87,519
59,317 Tesco PLC.................... 339,824
------------
2,402,932
------------
Metals -- Non Ferrous (0.3%):
14,497 Johnson Matthey PLC.......... 132,071
26,357 RTZ Corp. PLC................ 384,358
------------
516,429
------------
Metals -- Steel (0.1%):
84,908 British Steel PLC............ 203,418
------------
Mining (0.0%):
16,157 English China Clays PLC...... 51,783
------------
Multi-Industry (0.8%):
132,810 BTR PLC...................... 550,161
55,256 Grand Metropolitan PLC....... 411,305
125,466 Hanson PLC................... 185,477
17,459 Pearson PLC.................. 212,494
------------
1,359,437
------------
</TABLE>
Continued
-61-
<PAGE> 63
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Britain, Continued:
Oil & Gas Exploration, Production, & Services (0.1%):
6,361 Burmah Castrol PLC........... $ 104,891
------------
Publishing & Broadcasting (0.8%):
84,749 British Sky Broadcasting
Group PLC.................. 813,505
23,200 Carlton Communications PLC... 207,639
6,221 De La Rue PLC................ 57,821
12,530 Reed International PLC....... 218,162
------------
1,297,127
------------
Real Estate (0.4%):
9,843 Hammerson PLC................ 66,091
19,687 Land Securities PLC.......... 240,715
25,676 MEPC PLC..................... 186,185
26,150 Slough Estates PLC........... 117,126
------------
610,117
------------
Retail (0.1%):
9,590 Argos PLC.................... 100,814
11,029 Next PLC..................... 101,095
------------
201,909
------------
Telecommunications (1.3%):
185,800 British Telecom PLC.......... 1,272,860
72,907 Cable & Wireless PLC......... 544,445
87,637 Vodafone Group PLC........... 379,184
------------
2,196,489
------------
Textile Manufacturing (0.0%):
22,869 Coats Viyella PLC............ 49,291
------------
Transportation -- Airlines (0.2%):
22,817 British Airways PLC.......... 217,009
------------
Transportation -- Shipping (0.2%):
19,221 Peninsular & Oriental Steam
Navigation Co.............. 200,827
------------
Utilities (0.9%):
6,437 Anglian Water PLC............ 65,348
144,404 British Gas PLC.............. 519,510
8,658 East Midlands Electricity
PLC........................ 92,959
13,321 London Electricity PLC....... 148,681
35,523 National Grid Group PLC...... 118,690
38,056 National Power PLC........... 304,314
2,835 Northern Electric PLC,
Preferred.................. 4,748
35,765 Scottish Power PLC........... 214,639
5,910 Southern Electric PLC........ 75,813
------------
1,544,702
------------
Total Britain 31,468,531
------------
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
COMMON STOCKS, CONTINUED:
DENMARK (1.0%):
Banking (0.2%):
1,599 Den Danske Bank.............. $ 132,375
3,248 Unidanmark................... 176,833
------------
309,208
------------
Beverages (0.1%):
862 Carlsberg, Class A........... 53,832
736 Carlsberg, Class B (b)....... 45,963
------------
99,795
------------
Commercial Services (0.0%):
1,240 ISS International Service
System, Class B............ 29,982
------------
Engineering (0.0%):
321 FLS Industries, Class B...... 43,220
------------
Food & Household (0.1%):
1,829 Danisco...................... 105,435
------------
Health Care (0.2%):
3,524 Novo Nordisk, Class B........ 327,289
------------
Medical Services (0.0%):
417 Radiometer................... 24,731
------------
Multi-Industry (0.1%):
1,170 Sophus Berendensen, Class
B.......................... 157,374
------------
Telecommunications (0.1%):
4,116 Tele Danmark, Class B........ 246,499
------------
</TABLE>
Continued
-62-
<PAGE> 64
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Denmark, Continued:
Transportation -- Shipping (0.2%):
4 D/S, Class B................. $ 165,253
5 D/S 1912, Class B............ 147,318
------------
312,571
------------
Total Denmark 1,656,104
------------
FINLAND (0.7%):
Banking (0.1%):
28,033 Merita, Ltd., Class A........ 94,734
------------
Electrical & Electronic (0.4%):
6,100 Oy Nokia AB, Class A......... 404,788
3,400 Oy Nokia AB, Class K......... 227,709
------------
632,497
------------
Forest Products (0.1%):
8,340 UPM-Kymmene Corp............. 162,613
------------
Insurance -- Property, Casualty, Health & Other (0.0%):
500 Sampo Insurance Co. Ltd.,
Class A.................... 45,058
------------
Machine Tools (0.0%):
200 Kone Corp., Class B.......... 22,939
------------
Metals -- Non Ferrous (0.0%):
3,500 Outokumpu OY, Class A........ 56,343
------------
Multi-Industry (0.0%):
1,300 Metra Oy, Class A............ 72,954
------------
Retail (0.0%):
400 Stockmann AB, Class A........ 24,577
------------
Wholesale (0.1%):
7,000 Kesko........................ 93,906
------------
Total Finland 1,205,621
------------
FRANCE (7.1%):
Aerospace/Defense (0.1%):
3,217 Thomson CSF.................. 95,677
150 Sagem........................ 86,835
------------
182,512
------------
Automobiles (0.1%):
1,250 PSA Peugeot.................. 134,096
------------
Automotive Parts (0.1%):
1,768 Valeo........................ 116,422
------------
Banking (0.5%):
4,232 Banque Nationale de Paris.... 169,579
4,502 Compagnie de Suez............ 213,790
4,402 Compagnie Financiere de
Paribas.................... 301,258
2,057 Societe Generale............. 236,671
------------
921,298
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
France, Continued:
Beverages (0.5%):
2,600 LVMH (Louis Vuitton Moet
Hennessy).................. $ 658,497
3,048 Pernod Ricard................ 170,328
------------
828,825
------------
Building Materials (0.1%):
2,963 Lafarge...................... 178,871
------------
Business & Public Services (0.4%):
4,019 Compagnie Generale des
Eaux....................... 514,759
2,380 Havas........................ 174,590
------------
689,349
------------
Chemicals (0.4%):
2,570 L'Air Liquide................ 417,505
8,872 Rhone-Poulenc................ 295,641
------------
713,146
------------
Commercial Services (0.1%):
200 Sodexho...................... 97,508
------------
Construction & Housing (0.0%):
724 Bouygues..................... 71,120
------------
Diversified (0.1%):
5,501 Lagardere SCA................ 156,440
------------
Electrical & Electronic (0.4%):
4,620 Alcatel Alsthom.............. 458,010
872 Legrand...................... 146,708
------------
604,718
------------
Energy (0.9%):
8,400 Elf Aquitaine................ 816,030
7,261 Total, Class B............... 625,253
------------
1,441,283
------------
Financial Services (0.1%):
766 Compagnie Bancaire........... 92,290
100 Societe Eurafrance........... 42,477
------------
134,767
------------
</TABLE>
Continued
-63-
<PAGE> 65
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
France, Continued:
Food & Household (0.3%):
650 Eridania Beghin-Say (b)...... $ 99,715
2990 Groupe Danone................ 462,477
------------
562,192
------------
Furniture (0.0%):
1,050 Moulinex (b)................. 26,137
------------
Health Care (0.7%):
2,125 L'OREAL...................... 753,088
4,369 Sanofi....................... 438,660
------------
1,191,748
------------
Industrial Goods & Services (0.1%):
3,238 Michelin..................... 185,749
------------
Insurance -- Property, Casualty, Health & Other (0.1%):
7902 Compagnie.................... 207,423
------------
Leisure (0.2%):
2,076 Accor........................ 278,290
------------
Machine Tools (0.1%):
3,463 Schneider.................... 174,725
800 Sidel........................ 57,441
------------
232,166
------------
Manufacturing (0.1%):
250 Groupe St. Louis............. 62,186
750 Societe BIC.................. 119,669
------------
181,855
------------
Materials (0.2%):
2,373 Compagnie de St. Gobain
(b)........................ 365,325
------------
Merchandising (0.7%):
1,100 Carrefour.................... 660,668
650 Pinault-Printemps-Redoute.... 277,392
659 Promodes..................... 181,806
------------
1,119,866
------------
Metals -- Steel (0.1%):
9,450 Usinor Sacilor............... 134,371
------------
Multi-Industry (0.3%):
5,852 AXA.......................... 386,411
1,230 Lyonnaise des Eaux........... 125,053
------------
511,464
------------
Publishing & Broadcasting (0.1%):
761 Canal Plus................... 162,725
------------
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
COMMON STOCKS, CONTINUED:
France, Continued:
Real Estate (0.2%):
2,550 SEFIMEG...................... $ 179,911
841 Simco........................ 81,244
250 Unibail...................... 23,066
------------
284,221
------------
Retail (0.1%):
150 Comptoirs Modernes........... 78,151
1,550 Establissements Economoiques
du Casino
Guichard-Perrachon......... 66,456
------------
144,607
------------
Textiles (0.0%):
200 Chargeurs International...... 10,919
200 Pathe (b).................... 50,835
------------
61,754
------------
Total France 11,920,248
------------
GERMANY (8.2%):
Automobiles (0.8%):
13,120 Daimler-Benz (b)............. 918,894
750 Volkswagen................... 351,486
150 Volkswagen, Preferred........ 54,497
------------
1,324,877
------------
Banking (0.9%):
6,550 Bayer Hypotheken-und Weschel-
Bank....................... 207,176
7,250 Bayerische Vereinsbank....... 272,258
14,150 Deutsche Bank................ 705,387
13,450 Dresdner Bank................ 428,297
------------
1,613,118
------------
Beverages (0.0%):
150 Brau Und Brunnen (b)......... 11,083
------------
Building Materials (0.2%):
1,200 Bilfinger & Berger Bau....... 43,818
3,050 Heidelberg Zement............ 250,490
------------
294,308
------------
Business & Public Services (0.3%):
1,720 SAP.......................... 251,012
1,210 SAP, Preferred Shares........ 180,869
------------
431,881
------------
</TABLE>
Continued
-64-
<PAGE> 66
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Germany, Continued:
Chemicals (0.8%):
15,000 BASF......................... $ 542,227
20,150 Bayer........................ 761,612
------------
1,303,839
------------
Construction & Housing (0.1%):
880 AGIV, fuer Industrie und
Verkehrswesen.............. 14,669
3,500 Hochtief..................... 141,693
------------
156,362
------------
Diversified (0.0%):
3,400 Kloeckner-Humboldt-Deutz
(b)........................ 17,958
------------
Electrical & Electronic (0.5%):
16,870 Siemens...................... 827,383
------------
Engineering (0.0%):
100 Strabag (b).................. 6,527
------------
Forest Products (0.0%):
200 PWA-Papierwerke Waldhof-
Aschaffenburg.............. 27,172
------------
Health Care (0.3%):
3,600 Beiersdorf................... 182,012
3,100 Schering..................... 262,736
------------
444,748
------------
Insurance -- Property, Casualty, Health & Other (1.1%):
600 Allianz Holding.............. 1,108,268
100 AMV Aachener und Muenchener
Bete....................... 58,314
200 AMB Aachener & Muenchener
Beiteiligungs (b).......... 137,755
1,750 CKAG Colonia Konzern......... 152,807
200 Muenchener Ruckversicherungs-
Gesellschaft............... 460,404
------------
1,917,548
------------
Machine Tools (0.4%):
250 Linde........................ 156,318
400 MAN.......................... 101,729
1,100 Mannesmann................... 427,523
------------
685,570
------------
Materials (0.1%):
300 Degussa...................... 127,588
------------
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
COMMON STOCKS, CONTINUED:
Germany, Continued:
Merchandising (0.3%):
850 Karstadt..................... $ 260,031
2,660 Metro (b).................... 205,466
------------
465,497
------------
Metals -- Steel (0.1%):
1,000 Thyssen...................... 191,123
------------
Multi-Industry (0.3%):
450 Preussag..................... 107,300
950 Viag......................... 391,267
------------
498,567
------------
Pharmaceuticals (0.1%):
4,900 Merck KGaA................... 186,104
------------
Rubber & Rubber Products (0.1%):
4,400 Continental.................. 84,497
------------
Shoes & Leather (0.1%):
1,900 Adidas....................... 179,246
------------
Telecommunications (0.5%):
48,750 Deutsche Telekom............. 907,314
------------
Transportation -- Airlines (0.2%):
19,700 Lufthansa.................... 264,641
------------
Utilities -- Electric & Gas (1.0%):
14,880 RWE.......................... 629,657
10,800 RWE, Preferred Shares........ 371,938
13,032 VEBA......................... 720,954
------------
1,722,549
------------
Total Germany 13,689,500
------------
HOLLAND (4.7%):
Banking (0.5%):
12,469 ABN Amro Holding............. 821,347
------------
Beverages (0.2%):
1,883 Heineken..................... 297,029
------------
Chemicals (0.2%):
2,240 Akzo Nobel................... 314,963
------------
Computer Software (0.0%):
2,024 Getronics.................... 57,909
------------
Energy (1.6%):
15,423 Royal Dutch Petroleum Co..... 2,701,317
------------
Financial Services (0.6%):
26,717 ING Groep (b)................ 1,007,098
------------
</TABLE>
Continued
-65-
<PAGE> 67
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Holland, Continued:
Food & Household (1.0%):
4,473 Koninklijke Ahold............ $ 276,150
1,919 NV Konklijke KNP BT.......... 42,274
12,724 Philips Electronics.......... 512,160
4,565 Unilever..................... 756,348
------------
1,586,932
------------
Metals -- Steel (0.0%):
754 Koninklijke Hoogovens........ 31,047
------------
Publishing & Broadcasting (0.3%):
17,660 Elsevier..................... 271,849
2,437 Wolters Kluwer............... 300,907
------------
572,756
------------
Telecommunications (0.3%):
11,534 Royal PTT Nederland.......... 419,090
------------
Transportation -- Airlines (0.0%):
2,680 KLM Royal Dutch Air Lines
(b)........................ 80,177
------------
Transportation -- Misc. (0.0%):
749 Koninklijke Pakhoed.......... 24,241
------------
Total Holland 7,913,906
------------
HONG KONG (3.7%):
Banking (0.5%):
47,063 Bank of East Asia............ 211,962
55,800 Hang Seng Bank............... 657,083
------------
869,045
------------
Business & Public Services (0.1%):
59,000 Wharf Holdings, Ltd.......... 266,485
------------
Hotels & Motels (0.0%):
19,000 Miramar Hotel & Investment,
Ltd........................ 36,656
------------
Financial Services (0.1%):
101,578 Chinese Estates Holdings..... 112,733
15,820 Evergo China Holdings Ltd.... 2,327
53,000 Peregrine Investment
Holdings................... 94,386
------------
209,446
------------
Multi-Industry (0.8%):
51,000 Hong Kong & Shanghai Hotels,
Ltd........................ 93,786
103,000 Hutchison Whampoa, Ltd....... 777,583
43,500 Swire Pacific, Ltd., Class
A.......................... 399,970
------------
1,271,339
------------
Publishing & Broadcasting (0.1%):
80,000 South China Morning Post
Holdings, Ltd.............. 64,008
10,000 Television Broadcasts,
Ltd........................ 44,135
------------
108,143
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Hong Kong, Continued:
Real Estate (1.3%):
82,000 Cheung Kong Holdings, Ltd.... $ 764,549
46,000 Hang Lung Development........ 94,386
131,139 Hopewell Holdings............ 79,117
25,000 Hysan Development Co.,
Ltd........................ 90,979
46,134 New World Development Co.,
Ltd........................ 284,579
38,000 Shangri-La Asia, Ltd......... 56,394
69,000 Sun Hung Kai Properties,
Ltd........................ 779,131
------------
2,149,135
------------
Telecommunications (0.4%):
346,569 Hong Kong Telecommunications,
Ltd........................ 599,305
------------
Transportation -- Airlines (0.1%):
120,000 Cathay Pacific Airways....... 185,830
------------
Transportation -- Marine (0.0%):
72,000 Shun Tak Holdings, Ltd....... 49,245
------------
Utilities -- Electric & Gas (0.3%):
75,000 China Light & Power Co.,
Ltd........................ 351,335
89,200 Hong Kong & China Gas Co.,
Ltd........................ 168,063
------------
519,398
------------
Total Hong Kong 6,264,027
------------
IRELAND (0.3%):
Banking (0.1%):
23,366 Allied Irish Banks........... 160,167
------------
Building Materials (0.1%):
9,978 CRH PLC...................... 101,563
------------
Food & Household (0.1%):
10,434 Greencore Group PLC.......... 61,731
4,102 Kerry Group PLC.............. 42,405
35,332 Waterford Wedgewood PLC...... 44,111
------------
148,247
------------
Forest Products (0.0%):
29,117 Jefferson Smurfit Group
PLC........................ 78,261
------------
Insurance -- Life (0.0%):
8,059 Irish Life PLC............... 34,734
------------
</TABLE>
Continued
-66-
<PAGE> 68
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Ireland, Continued:
Publishing -- Newspaper (0.0%):
9,128 Independent Newspapers PLC... $ 48,197
------------
Total Ireland......................... 571,169
------------
ITALY (3.4%):
Automobiles (0.2%):
82,000 Fiat......................... 262,880
24,000 Fiat, di Risp................ 43,465
29,000 Fiat, Privileged............. 52,431
------------
358,776
------------
Banking (0.3%):
56,000 Banca Commerciale Italiana... 113,597
57,500 Credito Italiano............. 78,415
37,100 Istituto Bancario San Paolo
di Torina.................. 255,853
8,000 Mediobanca................... 54,673
------------
502,538
------------
Building Materials (0.1%):
38,982 Italcementi.................. 242,070
------------
Computer Software (0.0%):
82,500 Olivetti & Co. (b)........... 32,240
------------
Construction & Housing (0.0%):
3,500 Sirti........................ 24,876
------------
Diversified (0.0%):
23,400 Parmalat Finanziaria......... 39,471
------------
Energy (0.1%):
16,000 Edison....................... 100,748
------------
Financial Services (0.1%):
12,000 Banco Ambrosiano Veneto...... 33,550
16,084 Istituto Mobiliare
Italiano................... 156,887
------------
190,437
------------
Forest Products (0.0%):
4,000 Burgo (Cartiere)............. 18,838
------------
Industrial Goods & Services (0.1%):
50,000 Pirelli...................... 111,522
------------
Insurance -- Property, Casualty, Health & Other (0.6%):
28,775 Assicurazioni Generali....... 594,431
123,794 Instituto Nazionale Delle
Assicurazioni.............. 171,129
9,075 Riunione Adriatici de
Sicurta.................... 87,590
7,075 Riunione Adriatici de
Sicurta, di Risp........... 39,561
5,000 Societa Assicuratrice
Industriale................ 47,373
------------
940,084
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Italy, Continued:
Multi-Industry (0.1%):
92,500 Montedison (b)............... $ 75,055
20,000 Snia BPD..................... 22,988
------------
98,043
------------
Oil & Gas Exploration, Production, & Services (0.8%):
226,926 Ente Nazionale Idrocarburi... 1,267,471
------------
Publishing & Broadcasting (0.1%):
29,384 Mediaset..................... 134,181
12,499 Mondadori (Arnoldo)
Editore.................... 107,475
------------
241,656
------------
Telecommunications (0.9%):
209,700 Telecom Italia............... 606,474
45,000 Telecom Italia, di Risp...... 104,004
219,437 Telecom Italia Mobile........ 653,040
60,025 Telecom Italia Mobile, di
Risp....................... 102,369
------------
1,465,887
------------
Textiles (0.0%):
3,500 Benetton Group............... 46,752
------------
Utilities -- Electric & Gas (0.0%):
19,000 Italgas...................... 79,444
------------
Total Italy 5,760,853
------------
JAPAN (29.0%):
Automobiles (2.5%):
29,000 Honda Motor Co............... 776,359
85,000 Nissan Motor Co., Ltd........ 525,123
115,000 Toyota Motor Corp............ 2,964,990
------------
4,266,472
------------
</TABLE>
Continued
-67-
<PAGE> 69
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Banking (4.6%):
66,000 Asahi Bank, Ltd.............. $ 451,235
18,000 Ashikaga Bank................ 69,687
151,000 Bank of Tokyo Mitsubishi..... 2,214,002
32,000 Bank of Yokohama............. 167,380
22,000 Chiba Bank................... 130,659
86,000 Fuji Bank, Ltd............... 899,670
13,000 Gunma Bank................... 104,407
18,000 Hokuriku Bank................ 65,091
81,000 Industrial Bank of Japan..... 1,020,840
29,000 Joyo Bank.................... 152,644
117,000 Sakura Bank, Ltd............. 664,991
34,000 Shizuoka Bank................ 313,674
98,000 Sumitomo Bank................ 1,057,495
58,000 Tokai Bank................... 449,094
------------
7,760,869
------------
Beverages (0.3%):
9,000 Asahi Breweries, Ltd......... 84,514
27,000 Kirin Brewery Co., Ltd....... 235,749
12,000 Sapporo Breweries............ 90,445
5,000 Takara Shuzo Co., Ltd........ 30,684
------------
441,392
------------
Building Materials (0.5%):
44,000 Chichibu Onoda Cement
Corp....................... 170,708
10,000 Nihon Cement Co., Ltd........ 49,918
9,000 Sanwa Shutter Corp........... 64,053
12,000 Tostem Corp.................. 281,713
12,000 Toto, Ltd.................... 122,570
6,000 Toyo Seikan Kaisha, Ltd...... 155,189
------------
844,151
------------
Business & Public Services (0.5%):
26,000 Dai Nippon Printing Co.,
Ltd........................ 421,911
7,000 Dai Nippon Screen............ 58,237
29,000 Toppan Printing Co., Ltd..... 343,987
------------
824,135
------------
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
COMMON STOCKS, CONTINUED:
Japan, Continued:
Chemicals (1.3%):
51,000 Asahi Chemical Industry...... $ 263,822
21,000 Dai Nippon Ink & Chemical,
Inc........................ 67,463
6,000 Daicel Chemical Industries... 26,590
33,000 Denki Kagaku Kogyo........... 75,297
13,000 Kaneka Corp.................. 57,932
91,000 Mitsubishi Chemical Corp..... 252,611
25,000 Mitsui Toatsu Chemical....... 67,751
11,000 Nippon Shokubai Co........... 64,695
13,000 Sekisui Chemical............. 122,076
8,000 Shin-Etsu Chemical........... 146,293
37,000 Showa Denko K. K. (b)........ 72,232
65,000 Sumitomo Chemical Co.,
Ltd........................ 230,231
90,000 Toray Industries, Inc........ 511,532
35,000 Tosoh Corp. (b).............. 105,231
39,000 Ube Industries, Ltd.......... 102,158
------------
2,165,914
------------
Construction & Housing (0.7%):
22,000 Aoki Corp.................... 38,237
19,000 Daiwa House Industry......... 222,240
40,000 Fujita Corp.................. 71,829
52,000 Haseko Corp. (b)............. 109,654
25,000 Kajima Corp.................. 154,448
4,000 Misawa Homes................. 25,898
15,000 Obayashi Corp................ 84,638
21,000 Penta-Ocean Construction..... 84,761
17,000 Sekisui House, Ltd........... 151,236
19,000 Shimizu Corp................. 120,667
26,000 Taisei Corp.................. 117,364
------------
1,180,972
------------
Data Processing (0.3%):
53,000 Fujitsu, Ltd................. 532,619
------------
Diversified (0.5%):
4,000 Ebara Corp................... 48,764
7,000 Kurita Water................. 141,268
10,000 Makita Corp.................. 133,443
24,000 Mitsubishi Materials......... 88,171
19,000 NSK, Ltd..................... 106,268
12,000 Shimano, Inc................. 196,705
6,000 Toyoda Automatic Loom
Works...................... 102,306
------------
816,925
------------
</TABLE>
Continued
-68-
<PAGE> 70
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Electrical & Electronic (1.0%):
96,000 Hitachi, Ltd................. $ 861,944
73,000 Mitsubishi Electric Corp..... 415,510
40,000 NEC Corp..................... 467,875
------------
1,745,329
------------
Electronic Components (1.2%):
4,200 Advantest Corp............... 225,222
3,000 Alps Electric Co., Ltd....... 33,114
5,500 Fanuc........................ 153,583
5,000 Kyocera...................... 293,245
7,000 Myrata Manufacturing......... 216,804
3,000 Nitto Denko Co............... 41,516
6,000 Omron Corp................... 97,364
5,000 Pioneeer Electronic Corp..... 84,020
6,000 Rohm Co., Ltd................ 392,916
3,000 Secom Co., Ltd............... 161,862
3,000 Tokyo Electron, Ltd.......... 107,990
2,000 Uniden Corp.................. 23,888
24,000 Yokogawa Electric............ 180,099
------------
2,011,623
------------
Energy (0.2%):
39,000 Japan Energy Corp............ 94,769
17,000 Mitsubishi Oil Co., Ltd...... 84,020
48,000 Nippon Oil Co., Ltd.......... 213,509
------------
392,298
------------
Engineering (0.3%):
7,500 Daito Trust Construction
Co......................... 72,282
5,000 Kandenko Co.................. 42,422
8,000 Kinden Corp.................. 100,165
46,000 Kumagi Gumi Co., Ltd. (b).... 90,560
15,000 Sumitomo Forestry Co.,
Ltd........................ 142,092
9,000 Toa Corp..................... 42,850
------------
490,371
------------
Entertainment (0.1%):
3,400 Sega Enterprise, Ltd......... 93,822
700 Toho Co., Ltd................ 92,257
7,000 Tokyo Dome Corp.............. 97,446
------------
283,525
------------
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
COMMON STOCKS, CONTINUED:
Japan, Continued:
Financial Services (1.4%):
13,000 77 Bank...................... $ 102,801
34,000 Daiwa Securities Co., Ltd.... 263,542
4,000 Jaccs........................ 24,712
32,000 Mitsubishi Trust & Banking... 329,489
34,000 Mitsui Trust & Banking....... 217,051
58,000 Nomura Securities Co.,
Ltd........................ 740,527
2,000 Orix Corp.................... 85,008
4,000 Yamaguchibank................ 56,013
70,000 Yamaichi Securities.......... 254,283
5,000 Yamazaki Banking Co.......... 70,840
50,000 Yasuda Trust & Banking....... 153,212
------------
2,297,478
------------
Food & Household (0.4%):
19,000 Ajinomoto.................... 170,593
35,000 Kao Corp..................... 369,028
15,000 Meiji Seika.................. 75,371
11,000 Nichirei Corp................ 49,654
------------
664,646
------------
Food Processing & Packaging (0.1%):
2,000 House Foods Corp............. 27,018
10,000 Meiji Milk Products.......... 43,987
3,000 Nissin Food Products......... 55,107
------------
126,112
------------
Forest Products (0.2%):
30,000 New Oji Paper Co., Ltd....... 158,896
43,000 Nippon Paper Industries
Co......................... 192,331
------------
351,227
------------
Health Care (1.0%):
13,000 Chugai Pharmaceutical........ 100,552
9,000 Kyowa Hakko Kogyo............ 62,941
14,000 Sankyo Co., Ltd.............. 364,415
23,000 Shiseido Co., Ltd............ 267,133
11,000 Taisho Pharmaceutical........ 250,082
27,000 Takeda Chemical Industries... 531,548
7,000 Yamanouchi Pharmaceutical.... 130,890
------------
1,707,561
------------
Hotels & Motels (0.0%):
4,000 Fujita Kanko, Inc............ 55,025
------------
</TABLE>
Continued
-69-
<PAGE> 71
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Household Goods (1.3%):
56,000 Matsushita Electric
Industrial Co.............. $ 844,151
55,000 Sanyo Electric Co., Ltd...... 231,054
37,000 Sharp Corp................... 505,931
8,500 Sony Corp.................... 572,734
------------
2,153,870
------------
Industrial Goods & Services (0.9%):
25,000 Bridgestone Corp............. 428,336
8,000 N G K Insulators, Ltd........ 69,852
6,000 N G K Sparkplug Co., Ltd..... 64,250
26,000 Nippondenso Co., Ltd......... 531,136
29,000 Sumitomo Electric
Industries................. 389,374
------------
1,482,948
------------
Insurance -- Fire & Marine (0.5%):
22,000 Mitsui Marine & Fire
Insurance.................. 117,974
9,000 Nichido Fire & Marine........ 50,264
23,000 Nippon Fire & Marine
Insurance.................. 85,066
24,000 Sumitomo Marine & Fire....... 137,397
46,000 Tokio Marine & Fire
Insurance.................. 416,804
------------
807,505
------------
Leisure (0.1%):
16,000 Konica Corp.................. 91,334
------------
Machine Tools (0.9%):
10,000 Amada Co., Ltd............... 66,722
9,000 Daikin Industries, Ltd....... 70,428
36,000 Komatsu, Ltd................. 253,542
62,000 Kubota Corp.................. 288,550
104,000 Mitsubishi Heavy Industries,
Ltd........................ 747,874
44,000 Mitsui Engineer & Shipbuild
(b)........................ 83,723
6,000 Mori Seiki Co., Ltd.......... 78,089
------------
1,588,928
------------
Materials (0.2%):
26,000 Asahi Glass Co., Ltd......... 231,301
22,000 Nippon Sheet Glass........... 73,394
------------
304,695
------------
Merchandising (0.9%):
16,000 Daiei, Inc................... 109,127
13,000 Ito-Yokado Co., Ltd.......... 601,812
9,000 Jusco........................ 251,318
10,000 Marui Co., Ltd............... 141,680
27,000 Mitsukoshi, Ltd.............. 158,352
19,000 Takashimaya Co............... 181,549
------------
1,443,838
------------
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
COMMON STOCKS, CONTINUED:
Japan, Continued:
Metals-Non Ferrous (0.3%):
43,000 Furukawa Electric............ $ 182,768
35,000 Nippon Light Metal Co........ 129,448
25,000 NTN Corp..................... 126,441
14,000 Sumitomo Metal Mining Co..... 86,606
------------
525,263
------------
Metals-Steel (0.9%):
24,000 Daido Steel Co., Ltd......... 79,275
78,000 Kawasaki Steel............... 191,466
255,000 Nippon Steel Co.............. 630,148
149,000 NKK Corp. (b)................ 301,927
130,000 Sumitomo Metal Industries.... 282,702
------------
1,485,518
------------
Oil & Gas Exploration, Production, & Services (0.1%):
28,000 Cosmo Oil Co., Ltd........... 114,399
------------
Pharmaceuticals (0.3%):
13,000 Daiichi Pharmaceutical....... 204,530
15,000 Eisai Co., Ltd............... 289,127
------------
493,657
------------
Publishing & Broadcasting (0.1%):
17,000 Tokyo Broadcasting........... 232,455
------------
Real Estate (0.3%):
32,000 Mitsubishi Estate Co.,
Ltd........................ 355,848
20,000 Mitsui Fudosan............... 205,931
------------
561,779
------------
Recreation (0.8%):
24,000 Canon, Inc................... 508,072
41,000 Citizen Watch Co., Ltd....... 303,278
16,000 Fuji Photo Film.............. 485,008
13,000 Olympus Optical Co., Ltd..... 108,155
------------
1,404,513
------------
</TABLE>
Continued
-70-
<PAGE> 72
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Retail (0.4%):
5,000 Aoyama Trading Co., Ltd...... $ 129,324
10,900 Credit Saison................ 231,647
3,000 Hankyu Department Stores..... 26,442
6,000 Istetan...................... 62,273
8,000 Mycal Corp................... 106,754
4,000 Seiyu, Ltd................... 36,573
------------
593,013
------------
Retail -- Specialty Stores (0.1%):
3,000 Hoya Corp.................... 119,852
------------
Rubber & Rubber Products (0.1%):
31,000 Okamoto Industries, Inc...... 129,720
------------
Textiles (0.1%):
26,000 Teijin, Ltd.................. 95,947
31,000 Toyobo, Ltd.................. 80,692
------------
176,639
------------
Transportation -- Airlines (0.1%):
52,000 Japan Airlines (b)........... 216,738
------------
Transportation -- Rail (1.3%):
161 East Japan Railway (b)....... 671,054
27,000 Hankyu Corp. (b)............. 125,214
33,000 Kinki Nippon Railway......... 199,794
18,000 Nagoya Railroad Co., Ltd..... 64,646
35,000 Nankai Electric Railway...... 167,216
53,000 Nippon Express Co., Ltd...... 315,206
27,000 Odakyu Electric Railway...... 142,117
33,000 Tobu Railway Co., Ltd........ 145,156
33,000 Tokyu Corp................... 151,408
16,000 Yamato Transport Co., Ltd.... 147,611
------------
2,129,422
------------
Transportation -- Shipping (0.2%):
71,000 Kawasaki Kisen (b)........... 146,211
31,000 Mitsui O.S.K. Lines, Ltd.
(b)........................ 65,115
22,000 Nippon Yusen Kabushiki
Kaish...................... 86,079
------------
297,405
------------
Utilities -- Electric & Gas (1.1%):
20,900 Kansai Electric Power........ 387,356
82,000 Osaka Gas Co................. 206,013
15,600 Tohoku Electric Power........ 268,567
31,700 Tokyo Electric Power......... 611,021
143,000 Tokyo Gas Co., Ltd........... 360,445
------------
1,833,402
------------
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
COMMON STOCKS, CONTINUED:
Japan, Continued:
Wholesale (0.9%):
63,000 Itochu Corp.................. $ 295,280
65,000 Marubeni Corp................ 257,001
37,000 Mitsubishi Corp.............. 341,351
36,000 Mitsui & Co.................. 264,514
17,000 Nagase & Co. Ltd............. 117,628
29,000 Sumitomo Corp................ 213,797
------------
1,489,571
------------
Total Japan 48,635,108
------------
MALAYSIA (2.7%):
Agriculture & Livestock (0.1%):
67,000 Highlands & Lowlands
Berhad..................... 117,539
------------
Automobiles (0.2%):
11,000 Edaran Otomobile Nasional.... 108,880
25,000 Perusahaan Otomobil Nasional
Berhad..................... 159,940
------------
268,820
------------
Banking (0.4%):
62,000 DCB Holdings Berhad.......... 234,498
35,000 Malayan Banking Berhad....... 387,277
------------
621,775
------------
Building Materials (0.1%):
16,000 Hume Industries Berhad....... 101,074
58,000 Pan Malaysia-Cement Works
Berhad..................... 64,177
------------
165,251
------------
Construction & Housing (0.0%):
95,000 Amsteel Corp. Berhad......... 78,361
------------
Engineering (0.1%):
23,500 YTL Corp. Berhad............. 124,814
------------
</TABLE>
Continued
-71-
<PAGE> 73
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Malaysia, Continued:
Financial Services (0.3%):
38,000 AMMB Holdings Berhad......... $ 336,377
74,333 Public Bank Berhad........... 164,500
30,000 Technology Resources
Industries Berhad (b)...... 63,372
------------
564,249
------------
Forest Products (0.0%):
24,000 Land & General Berhad........ 53,112
------------
Leisure (0.2%):
61,500 Magnum Corp. Berhad.......... 123,727
37,000 Resorts World Berhad......... 186,094
------------
309,821
------------
Machine Tools (0.1%):
18,000 United Engineers, Ltd........ 161,509
------------
Materials (0.1%):
123,000 Golden Hope Plantations
Berhad..................... 217,760
------------
Multi-Industry (0.2%):
39,000 Multi-Purpose Holdings Berhad
(b)........................ 86,307
39,000 Multi-Purpose Holdings Berhad
(b)........................ 70,929
74,000 Sime Darby Berhad............ 275,419
------------
432,655
------------
Real Estate (0.1%):
61,000 Hong Leong................... 89,832
33,000 Malaysian Resources Corp.
Berhad..................... 134,108
------------
223,940
------------
Telecommunications (0.3%):
57,000 Telekom Malaysia Berhad...... 447,229
------------
Tobacco & Tobacco Products (0.1%):
12,000 Rothmans of Pall Mall
Berhad..................... 129,159
------------
Transportation -- Airlines (0.0%):
25,000 Malaysian Airline System
Berhad..................... 61,864
------------
Transportation -- Shipping (0.1%):
36,000 Malaysian International
Shipping Berhad............ 90,532
------------
Utilities -- Electric & Gas (0.3%):
94,000 Tenaga Nasional Berhad....... 450,086
------------
Total Malaysia 4,518,476
------------
NEW ZEALAND (0.4%):
Beverages (0.0%):
13,326 Lion Nathan, Ltd............. 34,408
------------
Building Materials (0.0%):
4,600 Fletcher Challenge
Building................... 14,696
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
New Zealand, Continued:
Forest Products (0.1%):
49,289 Carter Holt Harvey, Ltd...... $ 114,369
31,069 Fletcher Challenge, Ltd...... 47,277
9,200 Fletcher Challenge Paper
(b)........................ 18,116
------------
179,762
------------
Multi-Industry (0.1%):
66,325 Brierley Investments, Ltd.... 61,194
------------
Oil & Gas Exploration, Production, & Services (0.0%):
4,600 Fletcher Challenge Energy
(b)........................ 13,398
------------
Telecommunications (0.2%):
60,102 Telecom Corp. of New Zealand,
Ltd........................ 304,989
------------
Total New Zealand 608,447
------------
NORWAY (0.6%):
Chemicals (0.0%):
1,200 Dyno Industrier.............. 30,714
------------
Energy (0.3%):
7,050 Norsk Hydro.................. 397,854
------------
Forest Products (0.0%):
700 Norske Skogindustrier, Class
A.......................... 21,479
------------
Health Care (0.0%):
1,050 Nycomed, Class A (b)......... 18,861
1,600 Nycomed, Class B (b)......... 28,124
------------
46,985
------------
Insurance -- Property, Casualty, Health & Other (0.0%):
7,398 UNI Storebrand, Class A
(b)........................ 44,373
------------
Machine Tools (0.0%):
1,450 Kvaerner, Class A............ 68,413
------------
Multi-Industry (0.1%):
1,250 Orkla........................ 99,452
------------
Oil & Gas Exploration, Production, & Services (0.1%):
1,700 Petroleum Geo-Services (b)... 73,656
------------
Transportation -- Shipping (0.0%):
2,400 Bergesen, Class A............ 54,213
------------
</TABLE>
Continued
-72-
<PAGE> 74
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Norway, Continued:
Utilities -- Electric & Gas (0.1%):
10,950 Hafslund, Class A............ $ 82,730
1,600 Hafslund, Class B............ 11,274
------------
94,004
------------
Total Norway 931,143
------------
SINGAPORE (1.4%):
Automobiles (0.0%):
3,000 Cycle & Carriage, Ltd........ 33,033
------------
Banking (0.3%):
15,000 Development Bank of
Singapore.................. 207,789
25,000 United Overseas Bank, Ltd.... 291,260
------------
499,049
------------
Beverages (0.0%):
6,000 Fraser & Neave, Ltd.......... 58,394
------------
Financial Services (0.2%):
25,000 OCBC......................... 340,988
------------
Household Goods (0.0%):
29,000 Amcol Holdings, Ltd.......... 53,976
------------
Leisure (0.0%):
13,200 Shangri La Hotel, Ltd........ 42,760
------------
Machine Tools (0.2%):
27,000 Keppel Corp.................. 218,658
------------
Metals -- Steel (0.0%):
26,000 Natsteel, Ltd................ 64,646
------------
Multi-Industry (0.0%):
32,000 United Industrial Corp....... 27,279
------------
Publishing & Broadcasting (0.1%):
7,000 Singapore Press Holdings..... 140,231
------------
Real Estate (0.2%):
15,000 City Developments............ 150,248
20,000 DBS Land..................... 82,405
------------
232,653
------------
Telecommunications (0.2%):
158,000 Singapore Telecommunications
(b)........................ 372,643
------------
Transportation -- Airlines (0.2%):
29,000 Singapore Airlines........... 271,938
------------
Transportation -- Shipping (0.0%):
47,000 Neptune Orient Lines......... 40,066
------------
Total Singapore 2,396,314
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
SPAIN (2.2%):
Banking (0.6%):
4,326 Corporacion Bancaria De
Espana..................... $ 181,096
6,181 Banco Bilbao Vizcaya......... 375,633
3,925 Banco Central
Hispanoamericano........... 101,843
6,271 Banco de Santander........... 407,355
------------
1,065,927
------------
Beverages (0.0%):
1,563 Tabacalera................... 70,620
------------
Business & Public Services (0.0%):
5,445 Autopistas Concesionaria
Espanola................... 67,399
------------
Construction & Housing (0.0%):
640 Fomento De Construccion y
Contratas.................. 57,325
------------
Energy (0.3%):
10,348 Repsol....................... 410,036
------------
Insurance -- Property, Casualty, Health & Other (0.0%):
1,047 Corporacion Mafre cia
International.............. 61,362
------------
Manufacturing (0.1%):
822 Zardoya-Otis................. 90,180
------------
Metal -- Steel (0.0%):
294 Acerinox, Registered......... 37,665
------------
Multi-Industry (0.0%):
579 Corporacion Financiera
Alba....................... 53,073
------------
Real Estate (0.1%):
1,062 Inmobiliaria Metropolitana
Vasco Central.............. 38,326
1,915 Vallehermoso................. 42,847
------------
81,173
------------
Telecommunications (0.4%):
27,169 Telefonica De Espana......... 637,310
------------
Utilities -- Electric & Gas (0.7%):
7,557 Empresa Nacional de
Electridad................. 493,619
1,164 Gas Natural SDG.............. 273,126
22,505 Iberdrola.................... 268,825
9,913 Union Electrica Fenosa....... 85,142
------------
1,120,712
------------
Total Spain 3,752,782
------------
</TABLE>
Continued
-73-
<PAGE> 75
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
SWEDEN (2.6%):
Automobiles (0.2%):
5,933 Volvo AB, Class A............ $ 142,347
7,321 Volvo AB, Class B............ 175,142
------------
317,489
------------
Automotive Parts (0.0%):
1,200 Autoliv AB, Class B.......... 52,023
------------
Banking (0.3%):
1,455 Diligentia................... 20,120
2,666 Skandia Group Foersaekrings
AB......................... 71,890
14,559 Skandinaviska Enskildea
Banken, Class A............ 145,963
3,862 Stadshypotek................. 100,937
6,651 Svenska Handelsbanken........ 173,370
------------
512,280
------------
Building Materials (0.0%):
1,200 Scancem AB................... 41,485
------------
Chemicals (0.1%):
5,458 AGA AB, Class A.............. 83,023
7,650 AGA AB, Class B.............. 114,251
------------
197,274
------------
Construction & Housing (0.1%):
3,259 Skanska AB, Class B.......... 138,130
------------
Electrical & Electronic (0.7%):
1,385 ABB, Class A................. 176,203
550 ABB, Class B................. 69,592
29,527 Ericsson LM, Class B......... 992,202
------------
1,237,997
------------
Forest Products (0.1%):
8,716 Stora Kopparbergs Bergslags
AB, Class A................ 110,887
5,310 Svenska Cellulosa AB, Class
B.......................... 106,840
------------
217,727
------------
Health Care (0.6%):
17,307 Astra AB, Class A............ 826,884
2,900 Astra AB, Class B............ 135,547
------------
962,431
------------
Household Goods (0.1%):
2,991 Electrolux AB, Class B....... 180,334
------------
Industrial Goods & Services (0.1%):
3,000 S.K.F. AB, Class B (b)....... 69,281
2,000 Trelleborg AB, Class B....... 30,008
------------
99,289
------------
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
COMMON STOCKS, CONTINUED:
Sweden, Continued:
Insurance -- Property, Casualty, Health & Other (0.1%):
3,400 Skanddia Forsakrings AB
(b)........................ $ 91,683
------------
Machine Tools (0.1%):
4,120 Atlas Copco AB, Class A...... 95,430
------------
Merchandising (0.1%):
1,237 Hennes & Mauritz AB, Class
B.......................... 195,007
------------
Tobacco & Tobacco Products (0.0%):
9,654 Swedish Match AB (b)......... 32,708
------------
Total Sweden 4,371,287
------------
SWITZERLAND (5.8%):
Banking (1.0%):
5,724 CS Holding, Registered....... 588,201
638 Schweiz Bankgesellschaft,
Class B.................... 529,420
2,621 Schweizerische Bankverein,
Registered................. 484,343
520 Union Bank of Switzerland.... 86,958
------------
1,688,922
------------
Building Materials (0.1%):
241 Holderbank Finan Glaris,
Class B.................... 175,093
------------
Business & Public Services (0.1%):
450 Adecco....................... 126,316
34 Societe Generale de
Surveillance Holding....... 74,655
116 Societe Generale de
Surveillance, Registered... 47,681
------------
248,652
------------
Chemicals (1.5%):
204 Novartis-Bearer.............. 233,067
1,941 Novartis, Registered......... 2,221,656
------------
2,454,723
------------
Construction & Housing (0.0%):
25 Schindler Holding............ 26,261
25 Schindler Holding,
Registered................. 25,822
------------
52,083
------------
Electrical & Electronic (0.2%):
260 ABB AG....................... 332,487
------------
</TABLE>
Continued
-74-
<PAGE> 76
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Switzerland, Continued:
Health Care (1.5%):
46 Roche Holding AG -- Bearer... $ 573,702
212 Roche Holding
AG -- Genussshein.......... 1,861,239
------------
2,434,941
------------
Household Goods (0.7%):
1,130 Nestle SA, Registered........ 1,225,902
------------
Insurance -- Property, Casualty, Health & Other (0.5%):
422 Schweiz Rueckversicherungs,
Registered................. 415,710
1,200 Zurich Versicherungs,
Registered................. 338,108
------------
753,818
------------
Metals -- Non Ferrous (0.1%):
100 Alusuisse-Lonza Holding Ltd.,
Registered................. 82,138
------------
Recreation (0.1%):
673 Swiss Corp. for
Microelectronics........... 103,441
106 Swiss Corp. for
Microelectronics-Bearer.... 71,873
------------
175,314
------------
Retail (0.0%):
280 Valora Holding, Registered... 55,578
------------
Transportation -- Airlines (0.0%):
50 Swissair..................... 45,777
------------
Total Switzerland..................... 9,725,428
------------
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
COMMON STOCKS, CONTINUED:
UNITED STATES (0.0%):
Banking (0.0%):
1,792 Millenium Chemicals, Inc..... $ 35,616
------------
Total United States 35,616
------------
Total Common Stock 163,041,028
------------
RIGHT & WARRANTS (0.0%):
RIGHTS (0.0%):
FRANCE (
1,05 Moulinex..................... 1,653
MALAYSIA (
39,000 Multi-Purpose Holdings
Berhad..................... 157
------------
Total Rights 1,810
------------
WARRANTS (0.0%):
BELGIUM (
329 Soc Gen Bru Put Warrants..... 3,959
------------
HONG KONG (0.0%):
1,250 Hysan Development Co.,Ltd.... 984
5,600 Hong Kong & China Gas Co.,
Ltd........................ 2,927
------------
3,911
------------
SWITZERLAND (0.0%):
195 Schweizerische Bankverein,
Registered................. 543
209 Roche Holding AG............. 13,657
------------
14,200
------------
Total Warrants........................ 22,070
------------
Total Rights & Warrants............... 23,880
------------
Investment Companies (2.3%):
2,701,050 Bank of New York Cash
Reserve.................... 2,701,050
130,376 SEI Core International....... 1,230,747
------------
Total Investment Companies............ 3,931,797
------------
Total (Cost $163,124,433)(a).......... $166,996,705
============
</TABLE>
- ---------
Percentages are based on net assets of $167,642,816.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $ 20,620,512
Unrealized depreciation... (16,748,240)
----------
Net unrealized
appreciation............ $ 3,872,272
==========
</TABLE>
(b) Non-income producing security.
See notes to financial statements.
-75-
<PAGE> 77
QUALIVEST FUNDS
ALLOCATED CONSERVATIVE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- -------- -------------------------------- -----------
<C> <S> <C>
INVESTMENT COMPANIES (99.7%):
329,301 Qualivest Diversified Bond Fund
(Class Y)..................... $ 3,332,524
320,274 Qualivest Intermediate Bond Fund
(Class Y)..................... 3,231,561
75,719 Qualivest International
Opportunities Fund (Class
Y)............................ 803,379
89,836 Qualivest Large Companies Fund
(Class Y)..................... 1,229,858
249,679 Qualivest Money Market Fund
(Class Y)..................... 249,679
58,118 Qualivest Optimized Stock Fund
(Class Y)..................... 818,303
31,449 Qualivest Small Companies Fund
(Class Y)..................... 511,672
-----------
Total Investment Companies 10,176,976
-----------
Total (Cost-$9,930,380)(a) $10,176,976
==========
</TABLE>
- ---------
Percentages indicated are based on net assets of $10,211,498.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation...... $279,838
Unrealized depreciation...... (33,242)
--------
Net unrealized
appreciation................. $246,596
========
</TABLE>
See notes to financial statements.
-76-
<PAGE> 78
QUALIVEST FUNDS
ALLOCATED BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
---------- ---------------------------- -----------
<S><C> <C> <C>
INVESTMENT COMPANIES (99.8%):
1,678,839 Qualivest Diversified Bond
Fund (Class Y)............ $16,989,846
1,053,461 Qualivest Intermediate Bond
Fund (Class Y)............ 10,629,416
991,320 Qualivest International
Opportunities Fund (Class
Y)........................ 10,517,907
1,148,166 Qualivest Large Companies
Fund (Class Y)............ 15,718,386
1,473,538 Qualivest Money Market Fund
(Class Y)................. 1,473,538
707,559 Qualivest Optimized Stock
Fund (Class Y)............ 9,963,002
350,978 Qualivest Small Companies
Fund (Class Y)............ 5,710,416
Total Investment Companies 71,002,511
Total (Cost -- $68,495,452)(a) $71,002,511
</TABLE>
- ---------
Percentages indicated are based on net assets of $71,119,172.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $ 2,853,474
Unrealized depreciation... (346,415)
-----------
Net unrealized
appreciation............ $ 2,507,059
===========
</TABLE>
See notes to financial statements.
-77-
<PAGE> 79
QUALIVEST FUNDS
ALLOCATED GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- -------- -------------------------------- -----------
<C> <S> <C>
INVESTMENT COMPANIES (99.2%):
205,468 Qualivest Diversified Bond Fund
(Class Y)..................... $ 2,079,332
131,270 Qualivest Intermediate Bond Fund
(Class Y)..................... 1,324,516
352,980 Qualivest International
Opportunities Fund (Class
Y)............................ 3,745,116
390,265 Qualivest Large Companies Fund
(Class Y)..................... 5,342,724
380,658 Qualivest Money Market Fund
(Class Y)..................... 380,658
256,482 Qualivest Optimized Stock Fund
(Class Y)..................... 3,611,261
152,317 Qualivest Small Companies Fund
(Class Y)..................... 2,478,190
-----------
Total Investment Companies 18,961,797
-----------
Total (Cost -- $18,160,467)(a) $18,961,797
===========
</TABLE>
- ---------
Percentages indicated are based on net assets of $19,106,963.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation..... $ 936,441
Unrealized depreciation..... (135,111)
---------
Net unrealized
appreciation.............. $ 801,330
=========
</TABLE>
See notes to financial statements.
-78-
<PAGE> 80
QUALIVEST FUNDS
ALLOCATED AGGRESSIVE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- -------- -------------------------------- -----------
<C> <S> <C>
INVESTMENT COMPANIES (99.6%):
493,174 Qualivest International
Opportunities Fund (Class
Y)............................ $ 5,232,581
491,911 Qualivest Large Companies Fund
(Class Y)..................... 6,734,255
444,156 Qualivest Money Market Fund
(Class Y)..................... 444,156
299,187 Qualivest Optimized Stock Fund
(Class Y)..................... 4,212,554
269,239 Qualivest Small Companies Fund
(Class Y)..................... 4,380,518
-----------
21,004,064
-----------
Total (Cost -- $20,079,364)(a) $21,004,064
===========
</TABLE>
- ---------
Percentages indicated are based on net assets of $21,096,074
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $ 1,033,192
Unrealized depreciation... (108,492)
-----------
Net unrealized
appreciation............ $ 924,700
==========
</TABLE>
See notes to financial statements.
-79-
<PAGE> 81
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1997
(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; Qualivest Allocated
Conservative Fund, Qualivest Allocated Balanced Fund, Qualivest Allocated
Growth Fund and Qualivest Allocated Aggressive Fund, (known as the "dynamic
allocation series"), each of which offers Class A, and Class Y shares. Sales
of shares of the Funds may be made to customers of the United States National
Bank of Oregon ("U.S. Bank") and its affiliates, to all accounts of
correspondent banks of U.S. Bank and to the general public. The Trust does
not intend to offer shares of the Qualivest Tax-Free National Bond Fund or
the Qualivest Income Equity Value Fund to the public at this time. Between
the date of organization and the date of commencement of operations, the
Trust had no operations other than those actions relating to organizational
matters, including the sale of initial shares.
Certain purchases of Class A shares are subject to front-end sales charges,
while certain redemptions of Class C shares may be subject to a contingent
deferred sales charges, all in accordance with the Trust's current
prospectuses. Each class of shares for each Fund has identical rights and
privileges except with respect to distribution (12b-1) fees paid by the Class
A, Class C and Class Q shares, voting rights on matters affecting a single
class of shares and the exchange privileges of each class of shares.
The Fund's investment objectives are as follows:
<TABLE>
<CAPTION>
FUND OBJECTIVE
<S> <C>
Money Market Fund.............. The Fund seeks current income consistent with liquidity and stability
of principal. It invests in high quality short-term money market
instruments.
U.S. Treasury Money Market The Fund seeks current income consistent with the liquidity and
Fund......................... stability of principal. It invests primarily in short term U.S.
Treasury Bills, notes and bonds and in other money market instruments
issued or guaranteed by the U.S. Government.
</TABLE>
Continued
-80-
<PAGE> 82
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
FUND OBJECTIVE
<S> <C>
Tax-Free Money Market Fund..... The Fund seeks current income, free from federal income tax,
consistent with liquidity and stability of principal. Under normal
market conditions and as a fundamental policy, at least 80% of the net
assets of the Tax-Free Money Market Fund will be invested in high
quality Money Market instruments the interest on which is both exempt
from federal income tax and not treated as a preference item for
individuals for purposes of the federal alternative minimum tax.
Intermediate Bond Fund......... The Fund seeks current income consistent with preservation of capital.
It invests primarily in debt obligations which include corporate debt
obligations, mortgage-related securities and obligations issued or
guaranteed by the U.S. Government or its agencies or
instrumentalities.
Diversified Bond Fund.......... The Fund seeks current income consistent with preservation of capital
it invests primarily in obligations issued or guaranteed by the U.S.
Government or its agencies or instrumentalities, corporate debt
obligations and mortgage related securities.
Small Companies Value Fund..... The Fund seeks capital appreciation. It invests primarily in common
stocks and securities convertible into common stock of small sized
companies.
Large Companies Value Fund..... The Fund seeks long-term capital appreciation. It invests primarily in
common stocks and securities convertible into common stocks of large
capitalization companies.
Optimized Stock Fund........... The Fund seeks capital appreciation and current income. It invests
primarily in common stocks and securities convertible into common
stocks of companies whose securities are listed on the S&P 500 Index.
International Opportunities The Fund seeks capital appreciation. It invests primarily in common
Fund......................... stocks and securities convertible into common stocks of companies that
are organized under the laws of at least three countries other than
the U.S. whose securities are listed on the EAFE Index.
Allocated Conservative Fund.... The Fund seeks to produce current income with a secondary objective of
long-term capital appreciation. The Fund will concentrate its
investments in Underlying Funds that invest primarily in fixed income
securities and short-term money market instruments. The Conservative
Fund also may invest a portion of its assets in Underlying Funds that
invest primarily in equity securities.
Allocated Balanced Fund........ The Fund seeks to provide a balance between long-term capital
appreciation and current income. The Fund broadly diversifies its
assets among most or all of the Underlying Funds, with emphasis placed
on investments in equity funds and the income funds.
Allocated Growth Fund.......... The Fund seeks to provide capital appreciation and income growth. The
Fund seeks capital appreciation primarily through an equity-oriented
investment. This Fund focuses on investment it the Equity Funds,
although it also will invest in the Income Funds and Money Market
Funds. However, this Fund emphasizes the potential rewards and risks
of an investment in equity securities.
Allocated Aggressive Fund...... The Fund seeks to provide maximum capital appreciation. The Fund seeks
this
</TABLE>
Continued
-81-
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
FUND OBJECTIVE
<S> <C>
<-> objective by investing substantially all of its assets in those
Underlying Funds that invests primarily in equity securities. The Fund
is oriented toward those investors seeking long-term capital
appreciation, with the potential for greater gains but with greater
risk of loss.
</TABLE>
Continued
-82-
<PAGE> 83
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements requires management to make estimates and assumptions
which affect the reported amounts of assets and liabilities at the date of
the financial statements and the reported amounts of income and expenses
during the reporting period. Actual results could differ from those
estimates.
VALUATION OF INVESTMENTS:
Investments of the money market funds are valued at either amortized cost,
which approximates market value, or at original cost, which when combined
with accrued interest approximates market value. Discount or premium is
amortized on a ratable basis to the maturity of the security. In addition,
the money market funds may not (a) purchase any instrument with a remaining
maturity greater than 397 days (thirteen months) unless such instrument is
subject to a demand feature, or (b) maintain a dollar-weighted average
maturity which exceeds 90 days.
Investments in common and preferred stocks, corporate bonds, convertible
bonds, commercial paper, U.S. Government securities and securities of U.S.
Government agencies of the variable net asset value funds and the dynamic
allocation series are valued at their market values determined on the basis
of the latest available bid prices in the principal market (closing sales
prices if the principal market is an exchange) in which such securities are
normally traded. Securities, including restricted securities, for which
market quotations are not readily available, are valued at fair market value
under the supervision of the Trust's Board of Trustees. The differences
between the amortized cost and market values of investments held by the
variable net asset value funds and dynamic allocation series, are reflected
as either unrealized appreciation or depreciation.
SECURITY TRANSACTIONS AND RELATED INCOME:
Security transactions are accounted for on the date the security is purchased
or sold (trade date). Interest income is recognized on the accrual basis. The
Funds amortize premiums and accrete discounts on purchases of securities on
the same basis for both financial reporting and federal income tax purposes.
Dividend income is recorded on the ex-dividend date, except for certain
dividends from foreign securities which are recorded as soon as the Fund is
informed of the ex-dividend date. Gains or losses realized on sales of
securities are determined using the identified cost basis.
Continued
-83-
<PAGE> 84
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
FOREIGN CURRENCY TRANSLATION:
The market value of investment securities, other assets and liabilities of
the International Opportunities Fund denominated in a foreign currency are
translated into U.S. dollars at the current exchange rate. Purchases and
sales of securities, income receipts and expense payments are translated into
U.S. dollars at the exchange rate on the dates of the transactions.
The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations
are included with the net realized and unrealized gain or loss from
investments.
Reported net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, currency
gains or losses realized between the trade and settlement dates on securities
transactions, the difference between the amounts of dividends, interest, and
foreign withholding taxes recorded on the Fund's books, and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains and losses arise from changes in the value of assets and
liabilities other than investments in securities at fiscal year end,
resulting from changes in the exchange rate.
FORWARD CURRENCY CONTRACTS:
The International Opportunities Fund may enter into forward currency exchange
contracts for the purchase or sale of specific foreign currency at a fixed
price on a future date. Risks may arise upon entering these contracts from
the potential inability of counterparties to meet the terms of their
contracts and from unanticipated movements in the value of a foreign currency
relative to the U.S. dollar. The Fund will enter into forward contracts as a
hedge against specific transactions or portfolio positions to protect against
adverse currency movements. The forward foreign currency exchange contracts
are adjusted by the daily exchange rate of the underlying currency and any
gains or losses are recorded for financial statement purposes as unrealized
until the contract settlement date, at which time the Fund records a realized
gain or loss equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed.
REPURCHASE AGREEMENTS:
The Funds may enter into repurchase agreements with 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
pledge securities as collateral held pursuant to the agreement at not less
than 102% of the repurchase price (including accrued interest).
Continued
-84-
<PAGE> 85
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
Securities subject to repurchase agreements are held by each Fund's custodian or
another qualified custodian or in the Federal Reserve/Treasury book-entry
system. Repurchase agreements are considered to be loans by a Fund under the
1940 Act.
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income are declared daily and paid monthly
for the money market funds. Distributions from net investment income are
declared and paid monthly for the Intermediate Bond Fund and the Diversified
Bond Fund. Distributions from net investment income are declared and paid
quarterly for the Small Companies Value Fund, the Large Companies Value Fund,
the Optimized Stock Fund, the International Opportunities Fund, the Allocated
Conservative Fund, the Allocated Balanced Fund, the Allocated Growth Fund and
the Allocated Aggressive Fund. Net realized capital gains, if any, are
declared and distributed annually for all Funds.
Distributions from net investment income and from net realized capital gains
are determined in accordance with income tax regulations which may differ
from generally accepted accounting principles. These differences are
primarily due to differing treatments of foreign currency transactions and
deferrals of certain losses.
FEDERAL INCOME TAXES:
It is the policy of each of the Funds to qualify as a regulated investment
company by complying with the provisions available to certain investment
companies, as defined in applicable sections of the Internal Revenue Code,
and by making distributions of net investment income and net realized capital
gains sufficient to relieve it from all, or substantially all, federal income
taxes. Accordingly, no provision for federal income is required in the
financial statements.
DELAYED DELIVERY TRANSACTIONS
Any of the Funds may purchase securities on a when issued or delayed delivery
basis and sell securities on a delayed delivery basis. These transactions
involve a commitment by a Fund to purchase or sell securities for a
predetermined price or yield with payment and delivery taking place more than
seven days in the future, or after a period longer than the customary
settlement period for that type of security. No interest will be earned by a
fund on such purchases until the securities are delivered; however, the
market value may change prior to delivery. There were no such commitments
included in any Fund's schedule of portfolio investments at January 31, 1997.
OTHER:
Expenses that are directly related to one of the Funds are charged directly
to that Fund and are allocated to each class of shares based on the relative
net assets of each class, except 12b-1 fees are allocated only to
Continued
-85-
<PAGE> 86
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
Class A shares, Class C shares or Class Q shares, and Shareholder service fees
are allocated only to Class Y shares. Other operating expenses of the Trust are
prorated to the Funds on the basis of relative net assets.
3. PURCHASES AND SALES OF SECURITIES:
Purchases and sales of securities (excluding short-term securities) for the
six months ended January 31, 1997 are as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C>
Intermediate Bond Fund.......................................... $99,973,128 $84,968,736
Diversified Bond Fund........................................... $46,187,434 $15,875,160
Small Companies Value Fund...................................... $66,435,096 $56,812,688
Large Companies Value Fund...................................... $37,370,090 $23,510,605
Optimized Stock Fund............................................ $74,036,851 $67,365,290
International Opportunities Fund................................ $24,615,679 $ 3,717,267
Allocated Conservative Fund..................................... $ 2,485,478 $ 323,240
Allocated Balanced Fund......................................... $31,363,224 $ 3,003,843
Allocated Growth Fund........................................... $ 7,669,148 $ 568,003
Allocated Aggressive Fund....................................... $13,535,294 $ 2,279,964
</TABLE>
Continued
-86-
<PAGE> 87
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1997
4. CAPITAL SHARE TRANSACTIONS:
<TABLE>
<CAPTION>
U.S. TREASURY
MONEY MARKET FUND MONEY MARKET FUND
------------------------------- -----------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1997 1996 1997 1996
------------ -------------- ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASS A SHARES:
Proceeds from shares issued..... $236,710,854 $ 444,512,914 $167,450,602 $182,756,923
Dividends reinvested............ 5,588,446 10,674,201 2,405,821 3,897,686
Cost of shares redeemed......... (228,264,855) (440,045,094) (139,615,442) (170,321,093)
------------ ------------ ------------ ------------
Net increase (decrease)--Class A
Shares........................ $ 14,034,445 $ 15,142,021 $ 30,240,981 $ 16,333,516
============ ============ ============ ============
CLASS Y SHARES:
Proceeds from shares issued..... $268,760,101 $ 337,817,323 $ 27,834,671 $ 4,244,114
Dividends reinvested............ 11,738 7,661 8,285 711
Cost of shares redeemed......... (222,020,640) (303,841,055) (26,716,398) (3,937,660)
------------ ------------ ------------ ------------
Net increase--Class Y Shares.... $ 46,751,199 $ 33,983,929 $ 1,126,558 $ 307,165
============ ============ ============ ============
CLASS Q SHARES:
Proceeds from shares issued..... $806,268,871 $1,146,443,973 $192,924,646 $155,622,865
Dividends reinvested............ 3,596,853 4,382,109 864,215 1,253,472
Cost of shares redeemed......... (742,316,225) (1,091,816,368) (200,624,210) (133,308,321)
------------ ------------ ------------ ------------
Net increase (decrease)--Class Q
Shares........................ $ 67,549,499 $ 59,009,714 $ (6,835,349) $ 23,568,016
------------ ------------ ------------ ------------
SHARE TRANSACTIONS:
CLASS A SHARES:
Issued.......................... 236,710,854 444,512,914 167,450,602 182,756,923
Reinvested...................... 5,588,446 10,674,201 2,405,821 3,897,686
Redeemed........................ (228,264,855) (440,045,094) (139,615,442) (170,321,093)
------------ ------------ ------------ ------------
Net increase (decrease)--Class A
Shares........................ 14,034,445 15,142,021 30,240,981 16,333,516
============ ============ ============ ============
CLASS Y SHARES:
Issued.......................... 268,760,101 337,817,323 27,834,671 4,244,114
Reinvested...................... 11,738 7,661 8,285 711
Redeemed........................ (222,020,640) (303,841,055) (26,716,398) (3,937,660)
------------ ------------ ------------ ------------
Net increase--Class Y Shares.... 46,751,199 33,983,929 1,126,558 307,165
============ ============ ============ ============
CLASS Q SHARES:
Issued.......................... 806,268,871 1,146,443,973 192,924,646 155,622,865
Reinvested...................... 3,596,853 4,382,109 864,215 1,253,472
Redeemed........................ (742,316,225) (1,091,816,368) (200,624,210) (133,308,321)
------------ ------------ ------------ ------------
Net increase (decrease)--Class Q
Shares........................ 67,549,499 59,009,714 (6,835,349) 23,568,016
============ ============ ============ ============
<CAPTION>
TAX-FREE
MONEY MARKET FUND
-------------------------------
FOR THE SIX
MONTHS
ENDED YEAR ENDED
JANUARY 31, JULY 31,
1997 1996
----------- -----------
(UNAUDITED)
<S> <C> <C>
CAPITAL TRANSACTIONS:
CLASS A SHARES:
Proceeds from shares issued..... $24,841,108 $64,492,744
Dividends reinvested............ 417,418 991,188
Cost of shares redeemed......... (22,537,731) (68,911,030)
----------- -----------
Net increase (decrease)--Class A
Shares........................ $ 2,720,795 $(3,427,098)
=========== ===========
CLASS Y SHARES:
Proceeds from shares issued..... $ 4,264,752 $ 3,950,136
Dividends reinvested............ 211 502
Cost of shares redeemed......... (754,750) (3,241,089)
----------- -----------
Net increase--Class Y Shares.... $ 3,510,213 $ 709,549
=========== ===========
CLASS Q SHARES:
Proceeds from shares issued..... $16,319,674 $26,681,957
Dividends reinvested............ 57,566 60,852
Cost of shares redeemed......... (15,630,061) (24,820,752)
----------- -----------
Net increase (decrease)--Class Q
Shares........................ $ 747,179 $ 1,922,057
----------- -----------
SHARE TRANSACTIONS:
CLASS A SHARES:
Issued.......................... 24,841,108 64,492,744
Reinvested...................... 417,418 991,188
Redeemed........................ (22,537,731) (68,911,030)
----------- -----------
Net increase (decrease)--Class A
Shares........................ 2,720,795 (3,427,098)
=========== ===========
CLASS Y SHARES:
Issued.......................... 4,264,752 3,950,136
Reinvested...................... 211 502
Redeemed........................ (754,750) (3,241,089)
----------- -----------
Net increase--Class Y Shares.... 3,510,213 709,549
=========== ===========
CLASS Q SHARES:
Issued.......................... 16,319,674 26,681,957
Reinvested...................... 57,566 60,852
Redeemed........................ (15,630,061) (24,820,752)
----------- -----------
Net increase (decrease)--Class Q
Shares........................ 747,179 1,922,057
=========== ===========
</TABLE>
Continued
-87-
<PAGE> 88
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1997
<TABLE>
<CAPTION>
SMALL COMPANIES
INTERMEDIATE BOND FUND DIVERSIFIED BOND FUND VALUE FUND
---------------------------- --------------------------- ----------------------------
FOR THE SIX FOR THE SIX FOR THE SIX
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1997 1996 1997 1996 1997 1996
------------ ----------- ----------- ----------- ----------- ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASS A SHARES:
Proceeds from shares issued..... $ 169,036 $ 468,264 $ 130,497 $ 319,488 $18,060,754 $ 8,734,542
Dividends reinvested............ 19,435 28,482 13,386 7,815 1,147,443 278,166
Cost of shares redeemed......... (37,652) (278,948) (34,840) (7,252) (14,807,633) (1,346,500)
------------ ------------ ------------ ------------ ------------ ------------
Net increase--Class A Shares.... $ 150,819 $ 217,798 $ 109,043 $ 320,051 $ 4,400,564 $ 7,666,208
============ ============ ============ ============ ============ ============
CLASS Y SHARES:
Proceeds from shares issued..... $ 44,013,600 $63,922,643 $43,421,137 $91,218,940 $97,563,339 $117,310,514
Dividends reinvested............ 4,486,361 8,007,605 5,469,074 9,024,800 32,083,876 18,872,436
Cost of shares redeemed......... (32,414,272) (52,698,051) (8,114,304) (11,304,575) (93,851,728) (61,655,821)
------------ ------------ ------------ ------------ ------------ ------------
Net increase--Class Y Shares.... $ 16,085,689 $19,232,197 $40,775,907 $88,939,165 $35,795,487 $ 74,527,129
============ ============ ============ ============ ============ ============
CLASS C SHARES:
Proceeds from shares issued..... $ 100,133 $ 31,389 $ 12,000 $ 9,129 $ 196,154 $ 932,486
Dividends reinvested............ 3,412 5,799 686 73 132,990 52,781
Cost of shares redeemed......... (142,534) (60,283) (15) -- (187,992) (90,439)
------------ ------------ ------------ ------------ ------------ ------------
Net increase--Class C Shares.... $ (38,989) $ (23,095) $ 12,671 $ 9,202 $ 141,152 $ 894,828
============ ============ ============ ============ ============ ============
SHARE TRANSACTIONS:
CLASS A SHARES:
Issued.......................... 16,956 46,452 13,153 31,704 1,183,167 627,722
Reinvested...................... 1,947 2,833 1,344 778 79,733 21,595
Redeemed........................ (3,775) (27,997) (3,509) (720) (972,219) (97,404)
------------ ------------ ------------ ------------ ------------ ------------
Net increase--Class A Shares.... 15,128 21,288 10,988 31,762 290,681 551,913
============ ============ ============ ============ ============ ============
CLASS Y SHARES:
Issued.......................... 4,362,117 6,277,182 4,280,663 8,867,817 6,497,916 8,469,326
Reinvested...................... 445,231 787,648 538,955 874,181 2,227,862 1,468,821
Redeemed........................ (3,211,789) (5,186,990) (799,750) (1,107,314) (6,233,063) (4,421,271)
------------ ------------ ------------ ------------ ------------ ------------
Net increase--Class Y Shares.... 1,595,559 1,877,840 4,019,868 8,634,684 2,492,715 5,516,876
============ ============ ============ ============ ============ ============
CLASS C SHARES:
Issued.......................... 10,055 3,129 1,259 969 13,040 67,990
Reinvested...................... 345 581 72 8 9,412 4,166
Redeemed........................ (14,419) (5,906) (2) -- (12,974) (6,763)
------------ ------------ ------------ ------------ ------------ ------------
Net increase--Class C Shares.... (4,019) (2,196) 1,329 977 9,478 65,393
============ ============ ============ ============ ============ ============
</TABLE>
Continued
-88-
<PAGE> 89
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1997
<TABLE>
<CAPTION>
LARGE COMPANIES INTERNATIONAL OPPORTUNITIES
VALUE FUND OPTIMIZED STOCK FUND FUND
--------------------------- --------------------------- ---------------------------
FOR THE SIX FOR THE SIX FOR THE SIX
MONTHS MONTHS MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1997 1996 1997 1996 1997 1996
----------- ----------- ----------- ----------- ----------- -----------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASS A SHARES:
Proceeds from shares issued..... $ 1,061,695 $ 3,958,952 $ 821,711 $ 1,222,446 $ 226,740 $ 2,815,117
Dividends reinvested............ 384,635 163,883 114,460 9,227 16,123 7,129
Cost of shares redeemed......... (467,224) (377,056) (135,251) (53,231) (531,043) (920,350)
------------ ------------ ------------ ------------ ------------ ------------
Net increase--Class A Shares.... $ 979,106 $ 3,745,779 $ 800,920 $ 1,178,442 $ (288,180) $ 1,901,896
============ ============ ============ ============ ============ ============
CLASS Y SHARES:
Proceeds from shares issued..... $38,149,757 $47,212,764 $21,998,478 $68,724,893 $31,066,499 $90,541,293
Dividends reinvested............ 7,005,879 9,349,993 14,762,451 5,756,933 1,144,838 461,408
Cost of shares redeemed......... (28,435,105) (40,083,973) (17,311,347) (21,810,924) (7,311,633) (10,494,579)
------------ ------------ ------------ ------------ ------------ ------------
Net increase--Class Y Shares.... $16,720,531 $16,478,784 $19,449,582 $52,670,902 $24,899,704 $80,508,122
============ ============ ============ ============ ============ ============
CLASS C SHARES:
Proceeds from shares issued..... $ 229,509 $ 439,893 $ 53,386 $ 72,298 $ 5,595 $ 18,591
Dividends reinvested............ 45,690 32,959 7,583 1,519 112 20
Cost of shares redeemed......... (146,071) (87,269) (5,621) (2,756) (2,154) --
------------ ------------ ------------ ------------ ------------ ------------
Net increase--Class C Shares.... $ 129,128 $ 385,583 $ 55,348 $ 71,061 $ 3,553 $ 18,611
============ ============ ============ ============ ============ ============
SHARE TRANSACTIONS:
CLASS A SHARES:
Issued.......................... 84,176 320,635 62,832 100,759 21,006 273,252
Reinvested...................... 30,415 14,377 8,717 774 1,480 674
Redeemed........................ (36,407) (30,203) (10,280) (4,335) (49,424) (89,117)
------------ ------------ ------------ ------------ ------------ ------------
Net increase--Class A Shares.... 78,184 304,809 61,269 97,198 (26,938) 184,809
============ ============ ============ ============ ============ ============
CLASS Y SHARES:
Issued.......................... 2,968,425 3,808,985 1,664,700 5,785,352 2,865,303 8,541,811
Reinvested...................... 551,486 821,751 1,124,160 492,000 104,347 43,820
Redeemed........................ (2,199,151) (3,228,601) (1,320,623) (1,799,096) (671,304) (983,990)
------------ ------------ ------------ ------------ ------------ ------------
Net increase--Class Y Shares.... 1,320,760 1,402,135 1,468,237 4,478,256 2,298,346 7,601,641
============ ============ ============ ============ ============ ============
CLASS C SHARES:
Issued.......................... 18,152 36,992 4,095 6,079 519 1,747
Reinvested...................... 3,670 2,947 579 129 10 2
Redeemed........................ (11,697) (7,195) (418) (232) (198) --
------------ ------------ ------------ ------------ ------------ ------------
Net increase--Class C Shares.... 10,125 32,744 4,256 5,976 331 1,749
============ ============ ============ ============ ============ ============
</TABLE>
Continued
-89-
<PAGE> 90
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1997
<TABLE>
<CAPTION>
ALLOCATED CONSERVATIVE FUND ALLOCATED BALANCED FUND
------------------------------- -------------------------------
FOR THE SIX FOR THE PERIOD FOR THE SIX FOR THE PERIOD
MONTHS FROM MAY 1, MONTHS FROM MAY 1,
ENDED 1996 THROUGH ENDED 1996 THROUGH
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1997 1996(A) 1997 1996(A)
----------- --------------- ----------- ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASS A SHARES:
Proceeds from shares issued........... $ 1,168,974 $ 10 $ 3,734,730 $ 10
Dividends reinvested.................. 10,613 -- 26,563 --
Cost of shares redeemed............... (46,648) -- (19,610) --
------------ ------------ ------------ ------------
Net increase--Class A Shares.......... $ 1,132,939 $ 10 $ 3,741,683 $ 10
============ ============ ============ ============
CLASS Y SHARES:
Proceeds from shares issued........... $ 2,034,750 $ 7,728,016 $27,679,010 $39,938,929
Dividends reinvested.................. 52,776 -- 984,490 77,746
Cost of shares redeemed............... (1,065,763) (109,914) (5,059,534) (750,056)
------------ ------------ ------------ ------------
Net increase--Class Y Shares.......... $ 1,021,763 $ 7,618,102 $23,603,966 $39,266,619
============ ============ ============ ============
SHARE TRANSACTIONS:
CLASS A SHARES:
Issued................................ 113,098 1 356,906 1
Reinvested............................ 1,017 -- 2,498 --
Redeemed.............................. (4,521) -- (1,852) --
------------ ------------ ------------ ------------
Net increase--Class A Shares.......... 109,594 1 357,552 1
============ ============ ============ ============
CLASS Y SHARES:
Issued................................ 197,587 771,455 2,744,829 3,995,653
Reinvested............................ 5,076 -- 95,214 7,698
Redeemed.............................. (102,299) (11,098) (486,438) (76,460)
------------ ------------ ------------ ------------
Net increase--Class Y Shares.......... 100,364 760,357 2,353,605 3,926,891
============ ============ ============ ============
</TABLE>
- ---------------
(a) Period from commencement of operations.
Continued
-90-
<PAGE> 91
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1997
<TABLE>
<CAPTION>
ALLOCATED GROWTH FUND ALLOCATED AGGRESSIVE FUND
-------------------------------- --------------------------------
FOR THE PERIOD FOR THE PERIOD
FOR THE SIX FROM MAY 1, FOR THE SIX FROM MAY 1,
MONTHS ENDED 1996 THROUGH MONTHS ENDED 1996 THROUGH
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1997 1996(A) 1997 1996(A)
------------ --------------- ------------ ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASS A SHARES:
Proceeds from shares issued........... $ 5,252,807 $ 10 $ 2,943,329 $ 2,010
Dividends reinvested.................. 21,369 -- 4,161 5
Cost of shares redeemed............... (61,728) -- (46,563) --
------------ ------------ ------------ ------------
Net increase--Class A Shares.......... $ 5,212,448 $ 10 $ 2,900,927 $ 2,015
============ ============ ============ ============
CLASS Y SHARES:
Proceeds from shares issued........... $ 2,194,074 $ 11,303,541 $ 10,075,734 $ 9,803,652
Dividends reinvested.................. 68,071 1,099 52,178 10,390
Cost of shares redeemed............... (911,505) (162,459) (1,935,367) (1,311,747)
------------ ------------ ------------ ------------
Net increase--Class Y Shares.......... $ 1,350,640 $ 11,142,181 $ 8,192,545 $ 8,502,295
============ ============ ============ ============
SHARE TRANSACTIONS:
CLASS A SHARES:
Issued................................ 492,049 1 275,188 196
Reinvested............................ 1,975 -- 384 --
Redeemed.............................. (5,734) -- (4,188) --
------------ ------------ ------------ ------------
Net increase--Class A Shares.......... 488,290 1 271,384 196
============ ============ ============ ============
CLASS Y SHARES:
Issued................................ 210,614 1,128,551 934,395 984,956
Reinvested............................ 6,502 107 5,008 1,012
Redeemed.............................. (86,790) (16,968) (181,884) (131,480)
------------ ------------ ------------ ------------
Net increase--Class Y Shares.......... 130,326 1,111,690 757,519 854,488
============ ============ ============ ============
</TABLE>
- ---------------
(a) Period from commencement of operations.
5. RELATED PARTY TRANSACTIONS (UNAUDITED):
Qualivest Capital Management, Inc. ("Qualivest") is the investment adviser to
the Trust. Qualivest, a registered investment adviser, is an affiliate of
U.S. Bank, which is a wholly owned subsidiary of U.S. Bancorp. Under the
terms of the investment advisory agreement with the Trust, Qualivest is
entitled to receive fees from each of the Funds at the following annual rates
of each Fund's average daily net assets: Money Market Fund--0.35%; U.S.
Treasury Money Market Fund--0.35%; Tax--Free Money Market Fund-- 0.35%;
Intermediate Bond Fund--0.60%; Diversified Bond Fund--0.60%; Small Companies
Value Fund-- 0.80%; Large Companies Value Fund--0.75%; Optimized Stock
Fund--0.50%; International Opportunities Fund--0.60%; Allocated Conservative
Fund --0.05%; Allocated Balanced Fund--0.05%; Allocated Growth Fund--0.05%;
and Allocated Aggressive Fund--0.05%.
Continued
-91-
<PAGE> 92
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1997
(UNAUDITED)
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS"),
serves the Funds as Administrator. Under the terms of the administration
agreement, BISYS receives a fee from each Fund, computed daily at a rate of
0.13% of the average daily net assets of the Money Market Fund, U.S. Treasury
Money Market Fund, Tax-Exempt Money Market Fund, Intermediate Bond Fund,
Diversified Bond Fund, Small Companies Value Fund, Large Companies Value
Fund, Optimized Stock Fund, and International Opportunities Fund, and 0.07%
of the average daily net assets of the Allocated Conservative Fund, Allocated
Balanced Fund, Allocated Growth Fund, and the Allocated Aggressive Fund.
BISYS also serves as the Funds' distributor and is entitled to receive
commissions on sales of shares of the variable net asset value funds. For the
six months ended January 31, 1997, BISYS received $672,930 of commissions
earned on sales of shares of the Trust's variable net asset value funds, of
which $607,666 was reallowed to dealers of the Funds' shares, including
$546,999 to affiliates of the Fund. BISYS Fund Services Ohio, Inc.("BISYS
Ohio") serves the Funds as transfer agent and mutual fund accountant.
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS"),
an Ohio limited partnership, and BISYS Ohio are subsidiaries of The BISYS
Group, Inc.
The Trust has adopted a Class A Distribution and Shareholder Service Plan
(the "Class A Plan"), a Class Q Distribution and Shareholder Service Plan
(the "Class Q Plan") and a Class C Distribution and Shareholder Service Plan
(the "Class C Plan"), pursuant to Rule 12b-1 under the 1940 Act. BISYS may
enter into agreements with banks and their affiliates, and other
institutions, including broker-dealers (each a "Participating Organization")
for providing shareholder services with respect to the Class Y shares. Under
the Class A Plan, the Funds pay or reimburse BISYS, as distributor, a fee not
to exceed 0.40% of the average daily net assets of Class A shares of the
money market funds and not to exceed 0.25% of the average daily net assets of
Class A shares of the variable net asset value funds. Under the Class Q Plan,
the money market funds pay or reimburse BISYS, as distributor, a fee not to
exceed 0.25% of the average daily net assets of Class Q shares of a Fund.
Under the Class C Plan, the variable net asset value funds pay or reimburse
BISYS, as distributor, (a) a distribution fee in an amount not to exceed on
an annual basis 0.75% of the average daily net assets of Class C shares of a
Fund, and (b) a service fee in an amount not to exceed on an annual basis
0.25% of the average daily net assets of the Class C shares of a Fund. These
fees may be used by BISYS to pay banks, including affiliates of the
investment adviser, broker-dealers and other institutions, or to reimburse
BISYS or its affiliates for administration, distribution and shareholder
service assistance in connection with the distribution of Fund shares. Under
a shareholder service plan for Class Y Shares, Participating Organizations
may be compensated at the annual rate of up to 0.25% of the average daily net
assets of certain shares of the Class Y shares. As of January 31, 1997 there
were no Class Y shareholder service fees charged to the Funds.
U.S. Bank (the "Custodian") provides custody services to the Funds, except
the International Opportunities Fund which uses an independent custodian.
Under the terms of the custody agreement with the Trust, the Custodian is
entitled to receive fees based on a percentage of the average daily net
assets of each Fund of the Trust, as well as reimbursement of certain
out-of-pocket expenses.
Continued
-92-
<PAGE> 93
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
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.
Information regarding these transactions is as follows for the six months
ended January 31, 1997:
<TABLE>
<CAPTION>
U.S.
TREASURY TAX-FREE
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Voluntary fee reductions............................................ $264,157 $260,350 $ 68,591
DISTRIBUTION & SERVICE FEES:
CLASS Q
Voluntary fee reductions............................................ $191,331 $ 9,025 --
TRANSFER AGENT AND MUTUAL FUND ACCOUNTANT FEES:....................... $ 26,502 $ 20,122 $ 19,512
</TABLE>
<TABLE>
<CAPTION>
SMALL
INTERMEDIATE DIVERSIFIED COMPANIES
BOND FUND BOND FUND VALUE FUND
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Voluntary fee reductions............................................ $129,280 $312,485 --
TRANSFER AGENT AND MUTUAL FUND ACCOUNTANT FEES:....................... $ 20,555 $ 23,193 $ 32,924
</TABLE>
<TABLE>
<CAPTION>
LARGE INTERNATIONAL
COMPANIES OPTIMIZED OPPORTUNITIES
VALUE FUND STOCK FUND FUND
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Voluntary fee reductions............................................ $107,936 $249,965 $239,559
TRANSFER AGENT AND MUTUAL FUND ACCOUNTANT FEES:....................... $ 28,492 $ 24,605 $ 28,598
</TABLE>
<TABLE>
<CAPTION>
ALLOCATED ALLOCATED ALLOCATED ALLOCATED
CONSERVATIVE BALANCED GROWTH AGGRESSIVE
FUND FUND FUND FUND
------------ -------- --------- ----------
<S> <C> <C> <C> <C>
TRANSFER AGENT AND MUTUAL FUND ACCOUNTANT FEES:........... $ 72 $9,208 $ 415 $392
</TABLE>
Continued
-93-
<PAGE> 94
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MONEY MARKET FUND
-----------------------------------------------------------------------------------------------------------------
JANUARY
FOR THE SIX MONTHS 10,
ENDED JANUARY 31, 1997 1995 TO
---------------------------------- FOR THE YEAR ENDED AUGUST 1, 1994 TO JULY 31,
JULY 31, 1996 JULY 31, 1995 (A) 1995(A)
(UNAUDITED) ----------------------------------- --------------------- --------
CLASS A CLASS Y CLASS Q CLASS A CLASS Y CLASS Q CLASS A CLASS Y CLASS Q
-------- -------- -------- --------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET
VALUE,
BEGINNING
OF PERIOD.. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- ------ -------- -------- ------ -------- -------- ------
Investment
Activities
Net
investment
income... 0.023 0.025 0.025 0.047 0.051 0.051 0.049 0.053 0.031
-------- ------ -------- -------- ------ -------- -------- ------
Distributions
Net
investment
income... (0.023) (0.025) (0.025) (0.047) (0.051) (0.051) (0.049) (0.053) (0.031)
-------- ------ -------- -------- ------ -------- -------- ------
NET ASSET
VALUE, END
OF
PERIOD..... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ====== ======== ======== ====== ======== ======== ======
Total
Return..... 2.33%(b) 2.54%(b) 2.54%(b) 4.79% 5.20% 5.20% 4.97% 5.40% 3.13%(b)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets
at end of
period
(000)...... $245,854 $147,219 $181,907 $ 231,819 $100,468 $114,358 $216,679 $ 66,484 $ 55,346
Ratio of
expenses to
average net
assets..... 0.89%(c) 0.49%(c) 0.49%(c) 0.91% 0.51% 0.51% 0.79% 0.38% 0.54%(c)
Ratio of net
investment
income to
average net
assets..... 4.58%(c) 4.98%(c) 4.98%(c) 4.68% 5.06% 5.04% 5.09% 5.31% 5.57%(c)
Ratio of
expenses to
average net
assets*.... 0.99%(c) 0.59%(c) 0.84%(c) 1.01% 0.61% 0.86% 1.04% 0.67% 0.90%(c)
Ratio of net
investment
income to
average net
assets*.... 4.48%(c) 4.88%(c) 4.63%(c) 4.58% 4.96% 4.69% 4.83% 5.02% 5.22%(c)
</TABLE>
- ---------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
-94-
<PAGE> 95
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. TREASURY MONEY MARKET FUND
--------------------------------------------------------------------------------------------------------
FOR THE SIX MONTHS
ENDED JANUARY 31, 1997
-------------------------------- FOR THE YEAR ENDED JANUARY 11, 1995 TO
JULY 31, 1996 JULY 31, 1995 (A)
(UNAUDITED) ------------------------------- -------------------------------
CLASS A CLASS Y CLASS Q CLASS A CLASS Y CLASS Q CLASS A CLASS Y CLASS Q
-------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.............. $ 1.000 $1.000 $ 1.000 $ 1.000 $1.000 $ 1.000 $ 1.000 $1.000 $1.000
-------- ------ -------- -------- ------ -------- -------- ------
Investment Activities
Net investment
income............ 0.023 0.025 0.024 0.046 0.050 0.048 0.028 0.030 0.029
-------- ------ -------- -------- ------ -------- -------- ------
Distributions
Net investment
income............ (0.023) (0.025) (0.024) (0.046) (0.050) (0.048) (0.028) (0.030) (0.029)
-------- ------ -------- -------- ------ -------- -------- ------
NET ASSET VALUE, END
OF PERIOD........... $ 1.000 $1.000 $ 1.000 $ 1.000 $1.000 $ 1.000 $ 1.000 $1.000 $1.000
======== ====== ======== ======== ====== ======== ======== ======
Total Return.......... 2.31%(b) 2.51% (b) 2.41%(b) 4.74% 5.16% 4.95% 2.79%(b) 3.02% (b) 2.90% (b)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........ $119,997 $1,447 $26,392 $89,756 $ 321 $33,227 $73,423 $ 14 $9,659
Ratio of expenses to
average net
assets.............. 0.67%(c) 0.27% (c) 0.47%(c) 0.72% 0.31% 0.51% 0.81%(c) 0.40% (c) 0.61% (c)
Ratio of net
investment income to
average net
assets.............. 4.53%(c) 4.93% (c) 4.73%(c) 4.63% 4.86% 4.81% 5.02%(c) 5.56% (c) 5.25% (c)
Ratio of expenses to
average net
assets*............. 1.02%(c) 0.62% (c) 0.87%(c) 1.07% 0.66% 0.91% 1.17%(c) 0.75% (c) 1.01% (c)
Ratio of net
investment income to
average net
assets*............. 4.18%(c) 4.58% (c) 4.33%(c) 4.28% 4.51% 4.41% 4.66%(c) 5.21% (c) 4.86% (c)
</TABLE>
- ---------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
-95-
<PAGE> 96
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TAX-FREE MONEY MARKET FUND
-------------------------------------------------------------------------------------------------------
FOR THE SIX MONTHS
ENDED JANUARY 31, 1997
------------------------------- FOR THE YEAR ENDED JANUARY 9, 1995 TO
JULY 31, 1996 JULY 31, 1995 (A)
(UNAUDITED) ------------------------------- -------------------------------
CLASS A CLASS Y CLASS Q CLASS A CLASS Y CLASS Q CLASS A CLASS Y CLASS Q
------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD............... $ 1.000 $1.000 $1.000 $ 1.000 $1.000 $1.000 $ 1.000 $1.000 $1.000
-------- ------ -------- -------- ------ -------- -------- ------
Investment Activities
Net investment
income............. 0.013 0.015 0.014 0.028 0.032 0.029 0.017 0.019 0.017
-------- ------ -------- -------- ------ -------- -------- ------
Distributions
Net investment
income............. (0.013) (0.015) (0.014) (0.028) (0.032) (0.029) (0.017) (0.019) (0.017)
-------- ------ -------- -------- ------ -------- -------- ------
NET ASSET VALUE, END OF
PERIOD............... $ 1.000 $1.000 $1.000 $ 1.000 $1.000 $1.000 $ 1.000 $1.000 $1.000
======== ====== ======== ======== ====== ======== ======== ======
Total Return........... 1.34%(b) 1.54% (b) 1.41% (b) 2.81% 3.22% 2.96% 1.66%(b) 1.88% (b) 1.73%(b)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)......... $32,863 $4,233 $3,919 $30,143 $ 723 $3,172 $33,569 14 $1,250
Ratio of expenses to
average net assets... 0.87%(c) 0.47% (c) 0.72% (c) 0.89% 0.41% 0.72% 1.00%(c) 0.59% (c) 0.85%(c)
Ratio of net investment
income to average net
assets............... 2.64%(c) 3.04% (c) 2.79% (c) 2.78% 2.92% 2.88% 2.98%(c) 3.38% (c) 3.19%(c)
Ratio of expenses to
average net
assets*.............. 1.22%(c) 0.82% (c) 1.07% (c) 1.25% 0.79% 1.08% 1.36%(c) 0.94% (c) 1.21%(c)
Ratio of net investment
income to average net
assets*.............. 2.29%(c) 2.69% (c) 2.44% (c) 2.42% 2.54% 2.52% 2.61%(c) 3.03% (c) 2.83%(c)
</TABLE>
- ---------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
-96-
<PAGE> 97
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERMEDIATE BOND FUND
----------------------------------------------------------------------------------------------------------
FOR THE SIX MONTHS
ENDED JANUARY 31, 1997
-------------------------------- FOR THE YEAR ENDED AUGUST 1, 1994 TO
JULY 31, 1996 JULY 31, 1995 (A)
(UNAUDITED) -------------------------------- --------------------------------
CLASS A CLASS Y CLASS C CLASS A CLASS Y CLASS C CLASS A CLASS Y CLASS C
------- -------- ------- ------- -------- ------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD............ $9.91 $ 10.01 $9.84 $10.06 $ 10.16 $9.96 $10.00 $ 10.00 $10.00
----- -------- ----- ----- -------- ----- ----- -------- -----
Investment
Activities
Net investment
income.......... 0.27 0.29 0.21 0.55 0.56 0.44 0.53 0.64 0.46
Net realized and
unrealized gains
(losses) from
investments..... 0.11 0.11 0.13 (0.16) (0.15) (0.10) 0.11 0.14 0.05
----- -------- ----- ----- -------- ----- ----- -------- -----
Total from
Investment
Activities.... 0.38 0.40 0.34 0.39 0.41 0.34 0.64 0.78 0.51
----- -------- ----- ----- -------- ----- ----- -------- -----
Distributions
Net investment
income.......... (0.27) (0.29) (0.23) (0.54) (0.56) (0.46) (0.58) (0.62) (0.55)
Net realized
gains........... (0.03) (0.03) (0.03) -- -- -- -- -- --
----- -------- ----- ----- -------- ----- ----- -------- -----
Total
Distributions... (0.30) (0.32) (0.26) (0.54) (0.56) (0.46) (0.58) (0.62) (0.55)
----- -------- ----- ----- -------- ----- ----- -------- -----
NET ASSET VALUE, END
OF PERIOD......... $9.99 $ 10.09 $9.92 $ 9.91 $ 10.01 $9.84 $10.06 $ 10.16 $ 9.96
===== ======== ===== ===== ======== ===== ===== ======== =====
Total
Return-excluding
sales and
redemption
charges........... 3.85%(b) 3.95%(b) 3.44%(b) 3.94% 4.15% 3.49% 6.67% 8.09% 5.42%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)...... $ 742 $175,457 $ 71 $ 586 $158,172 $ 110 $ 381 $141,399 $ 133
Ratio of expenses to
average net
assets............ 0.96%(c) 0.72%(c) 1.71%(c) 1.01% 0.76% 1.76% 0.80% 0.41% 1.59%
Ratio of net
investment income
to average net
assets............ 5.39%(c) 5.63%(c) 4.64%(c) 5.31% 5.57% 4.58% 5.94% 6.31% 5.18%
Ratio of expenses to
average net
assets*........... 1.11%(c) 0.87%(c) 1.86%(c) 1.16% 0.91% 1.91% 1.17% 0.91% 1.92%
Ratio of net
investment income
to average net
assets*........... 5.24%(c) 5.48%(c) 4.49%(c) 5.16% 5.42% 4.43% 5.57% 5.81% 4.85%
Portfolio Turnover
(d)............... 52% 52% 52% 66% 66% 66% 107% 107% 107%
</TABLE>
- ---------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Unannualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
See notes to financial statements.
-97-
<PAGE> 98
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
DIVERSIFIED BOND FUND
---------------------------------------------------------------------------------------------------------
FOR THE SIX MONTHS
ENDED JANUARY 31, 1997
-------------------------------- FOR THE YEAR ENDED MAY 2, 1995 TO
JULY 31, 1996 JULY 31, 1995 (A)
(UNAUDITED) -------------------------------- -------------------------------
CLASS A CLASS Y CLASS C CLASS A CLASS Y CLASS C CLASS A CLASS Y CLASS C
------- -------- ------- ------- -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD............. 9$.86.. $ 10.04 $9.44 $10.18 $ 10.33 $10.22 $10.00 $ 10.00 $10.00
----- -------- ----- ------ -------- ------ ------ --------
Investment Activities
Net investment
income........... 0.27 0.29 0.21 0.55 0.58 0.48 0.01 0.15 0.01
Net realized and
unrealized gains
(losses) from
investments...... 0.15 0.15 0.15 (0.16) (0.13) (0.60) 0.30 0.31 0.33
----- -------- ----- ------ -------- ------ ------ --------
Total from
Investment
Activities..... 0.42.. 0.44 0.36 0.39 0.45 (0.12) 0.31 0.46 0.34
----- -------- ----- ------ -------- ------ ------ --------
Distributions
Net investment
income........... (0.28) (0.29) (0.24) (0.55) (0.58) (0.50) (0.13) (0.13) (0.12)
Net realized
gains............ (0.07) (0.07) (0.07) (0.16) (0.16) (0.16) -- -- --
----- -------- ----- ------ -------- ------ ------ --------
Total
Distributions... (0.35) (0.36) (0.31) (0.71) (0.74) (0.66) (0.13) (0.13) (0.12)
----- -------- ----- ------ -------- ------ ------ --------
NET ASSET VALUE, END
OF PERIOD.......... $9.93 $ 10.12 $9.49 $ 9.86 $ 10.04 $ 9.44 $10.18 $ 10.33 $10.22
===== ======== ===== ====== ======== ====== ====== ========
Total
Return-excluding
sales and
redemption
charges............ 4.30%(b) 4.45%(b) 3.81%(b) 3.79% 4.33% (1.37)% 3.07% (b) 4.58%(b) 3.35%(b)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)....... $ 425 $225,485 $ 22 $ 313 $183,255 $ 9 ** $99,347 **
Ratio of expenses to
average net
assets............. 0.82%(c) 0.57%(c) 1.72%(c) 0.85% 0.61% 1.58% 0.95% (c) 0.70%(c) 1.70%(c)
Ratio of net
investment income
to average net
assets............. 5.57%(c) 5.83%(c) 4.67%(c) 5.48% 5.72% 4.81% 5.66% (c) 5.91%(c) 4.91%(c)
Ratio of expenses to
average net
assets*............ 1.12%(c) 0.87%(c) 2.00%(c) 1.15% 0.91% 1.82% 1.25% (c) 1.00%(c) 2.00%(c)
Ratio of net
investment income
to average net
assets*............ 5.27%(c) 5.53%(c) 4.39%(c) 5.18% 5.42% 4.57% 5.36% (c) 5.61%(c) 4.61%(c)
Portfolio Turnover
(d)................ 8% 8% 8% 48% 48% 48% 34% 34% 34%
</TABLE>
- ---------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred the ratios would have been as indicated.
** Net assets are less than $1,000.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
See notes to financial statements.
-98-
<PAGE> 99
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SMALL COMPANIES VALUE FUND
----------------------------------------------------------------------------------------------------------
FOR THE SIX MONTHS
ENDED JANUARY 31, 1997
---------------------------------- FOR THE YEAR ENDED AUGUST 1, 1994 TO
JULY 31, 1996 JULY 31, 1995 (A)
(UNAUDITED) -------------------------------- ------------------------------
CLASS A CLASS Y CLASS C CLASS A CLASS Y CLASS C CLASS A CLASS Y CLASS C
------- -------- ------- ------- -------- ------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.............. $ 13.95 $ 13.96 $ 13.74 $ 13.23 $ 13.26 $ 13.14 $ 10.00 $ 10.00 $ 10.00
------- -------- -------- ------ -------- ------ ------ ------
Investment Activities
Net investment
income (loss)..... -- -- (0.05) 0.04 0.06 (0.03) 0.09 0.13 (0.03)
Net realized and
unrealized gains
from
investments....... 3.84 3.86 3.79 1.83 1.81 1.74 3.29 3.30 3.29
------- -------- -------- ------ -------- ------ ------ ------
Total from
Investment
Activities...... 3.84 3.86 3.74 1.87 1.87 1.71 3.38 3.43 3.26
------- -------- -------- ------ -------- ------ ------ ------
Distributions
Net investment
income............ (0.01) (0.03) -- (0.04) (0.06) -- (0.10) (0.12) (0.07)
Net realized
gains............. (1.52) (1.52) (1.52) (1.11) (1.11) (1.11) (0.05) (0.05) (0.05)
------- -------- -------- ------ -------- ------ ------ ------
Total
Distributions... (1.53) (1.55) (1.52) (1.15) (1.17) (1.11) (0.15) (0.17) (0.12)
------- -------- -------- ------ -------- ------ ------ ------
NET ASSET VALUE, END
OF PERIOD........... $ 16.26 $ 16.27 $ 15.96 $ 13.95 $ 13.96 $ 13.74 $ 13.23 $ 13.26 $ 13.14
======= ======== ======== ====== ======== ====== ====== ======
Total
Return -- excluding
sales redemption
charges............. 28.95% (b) 29.11%(b) 28.68% (b) 14.93% 14.94% 13.79% 34.29% 34.76% 33.02%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........ $15,248 $387,637 $ 1,574 $ 9,022 $297,793 $ 1,225 $ 1,257 $209,626 $ 312
Ratio of expenses to
average net
assets.............. 1.31% (c) 1.06%(c) 2.06% (c) 1.33% 1.08% 2.08% 1.11% 0.60% 1.85%
Ratio of net
investment income to
average net
assets.............. (0.02)%(c) 0.23%(c) (0.77)%(c) 0.14% 0.41% (0.60)% 0.63% 1.20% (0.10)%
Ratio of expenses to
average net
assets*............. 1.31% (c) 1.06%(c) 2.06% (c) 1.33% 1.08% 2.08% 1.38% 1.12% 2.13%
Ratio of net
investment income to
average net
assets*............. (0.02)%(c) 0.23%(c) (0.77)%(c) 0.14% 0.41% (0.60)% 0.36% 0.68% (0.38)%
Portfolio Turnover
(d)................. 16% 16% 16% 34% 34% 34% 37% 37% 37%
Average commission
rate paid (e)....... $0.0515 $ 0.0515 $0.0515 $0.0398 $ 0.0398 $0.0398
</TABLE>
- ---------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Unannualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
(e) Represents the dollar amount of commissions paid on Portfolio transactions
divided by the total number of shares purchased and sold for which
commissions were charged and is calculated on the basis of the Portfolio as
a whole without distinguishing between the classes of shares issued.
Disclosure not required for periods prior to fiscal 96.
See notes to financial statements.
-99-
<PAGE> 100
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LARGE COMPANIES VALUE FUND
-----------------------------------------------------------------------------------------------
FOR THE SIX MONTHS
ENDED JANUARY 31, 1997
-------------------------------- FOR THE YEAR ENDED AUGUST 1, 1994 TO
JULY 31, 1996 JULY 31, 1995 (A)
(UNAUDITED) ---------------------------- ---------------------------
CLASS A CLASS Y CLASS C CLASS A CLASS Y CLASS C CLASS A CLASS Y CLASS C
------- -------- ------- ------- -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD......................... $ 11.92 $ 11.98 $ 11.73 $ 12.20 $ 12.23 $ 12.04 $10.00 $ 10.00 $10.00
------- -------- ------- ------- -------- ------- ------- ------- -------
Investment Activities
Net investment income.......... 0.08 0.10 0.03 0.20 0.21 0.13 0.18 0.24 0.12
Net realized and unrealized
gains from investments....... 2.52 2.53 2.48 0.71 0.75 0.69 2.23 2.22 2.11
------- -------- ------- ------- -------- ------- ------- ------- -------
Total from Investment
Activities................. 2.60 2.63 2.51 0.91 0.96 0.82 2.41 2.46 2.23
------- -------- ------- ------- -------- ------- ------- ------- -------
Distributions
Net investment income.......... (0.11) (0.13) (0.05) (0.19) (0.21) (0.13) (0.18) (0.20) (0.16)
Net realized gains............. (0.79) (0.79) (0.79) (1.00) (1.00) (1.00) (0.03) (0.03) (0.03)
------- -------- ------- ------- -------- ------- ------- ------- -------
Total Distributions.......... (0.90) (0.92) (0.84) (1.19) (1.21) (1.13) (0.21) (0.23) (0.19)
------- -------- ------- ------- -------- ------- ------- ------- -------
Net Asset Value, End of Period... $ 13.62 $ 13.69 $ 13.40 $ 11.92 $ 11.98 $ 11.73 $12.20 $ 12.23 $12.04
======= ======== ======= ======= ======== ======= ======= ======= =======
Total Return -- excluding sales
redemption charges............. 22.39%(b) 22.54%(b) 21.93%(b) 8.17% 8.57% 7.46% 24.61% 25.04% 22.78%
Ratios/Supplementary Data:
Net Assets at end of period
(000).......................... $ 6,394 $147,070 $ 876 $ 4,666 $112,908 $ 648 $1,056 $98,127 $ 271
Ratio of expenses to average net
assets......................... 1.16%(c) 0.91%(c) 1.91%(c) 1.18% 0.93% 1.93% 1.04% 0.53% 1.78%
Ratio of net investment income to
average net assets............. 1.26%(c) 1.51%(c) 0.51%(c) 1.52% 1.77% 0.77% 1.70% 2.19% 0.91%
Ratio of expenses to average net
assets*........................ 1.31%(c) 1.06%(c) 2.06%(c) 1.33% 1.08% 2.08% 1.38% 1.11% 2.13%
Ratio of net investment income to
average net assets*............ 1.11%(c) 1.36%(c) 0.36%(c) 1.37% 1.62% 0.62% 1.36% 1.61% 0.56%
Portfolio Turnover (d)........... 18% 18% 18% 35% 35% 35% 48% 48% 48%
Average commission rate paid
(e)............................ $0.0574 $ 0.0574 $0.0574 $0.0574 $ 0.0574 $0.0574
</TABLE>
- ---------
*During the period certain fees were voluntarily reduced. If such voluntary fee
reductions had not occurred the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Unannualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
(e) Represents the dollar amount of commissions paid on Portfolio transactions
divided by the total number of shares purchased and sold for which
commissions were charged and is calculated on the basis of the Portfolio as
a whole without distinguishing between the classes of shares issued.
Disclosure not required for periods prior to fiscal 96.
See notes to financial statements.
-100-
<PAGE> 101
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OPTIMIZED STOCK FUND
-----------------------------------------------------------------------------------------------------------------------
FOR THE SIX MONTHS
ENDED JANUARY 31, 1997
------------------------------------ FOR THE YEAR ENDED MAY 2, 1995 TO
JULY 31, 1996 JULY 31, 1995 (A)
(UNAUDITED) ---------------------------------- ------------------------------------
CLASS A CLASS Y CLASS C CLASS A CLASS Y CLASS C CLASS A CLASS Y CLASS C
------- -------- ------- ------- -------- ------- ------- -------- -------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET
VALUE,
BEGINNING
OF
PERIOD... $12.10 $ 12.12 $12.05 $10.94 $ 10.95 $10.92 $10.00 $ 10.00 $10.00
----- -------- ----- ------ -------- ------ ------ -------- ------
Investment
Activities
Net
investment
income... 0.08 0.10 0.02 0.19 0.21 0.11 0.03 0.06 0.03
Net
realized
and
unrealized
gains
from
investments.. 2.76 2.76 2.76 1.36 1.37 1.37 0.93 0.91 0.91
----- ------- ----- ------ -------- ------ ------ -------- ------
Total
from
Investment
Activities.. 2.84 2.86 2.78 1.55 1.58 1.48 0.96 0.97 0.94
----- ------- ----- ------ -------- ------ ------ -------- ------
Distributions
Net
investment
income... (0.11) (0.13) (0.05) (0.19) (0.21) (0.15) (0.02) (0.02) (0.02)
Net
realized
gains... (0.77) (0.77) (0.77) (0.20) (0.20) (0.20) -- -- --
----- ------- ----- ------ -------- ------ ------ -------- ------
Total
Distributions (0.88) (0.90) (0.82) (0.39) (0.41) (0.35) (0.02) (0.02) (0.02)
----- ------- ----- ------ -------- ------ ------ -------- ------
NET ASSET
VALUE,
END OF
PERIOD... $14.06 $ 14.08 $14.01 $12.10 $ 12.12 $12.05 $10.94 $ 10.95 $10.92
===== ======== ===== ====== ======== ====== ====== ======== ======
Total
Return--excluding
sales
and
redemption
charges... 24.02%(b) 24.15%(b) 23.56%(b) 14.36% 14.56% 13.62% 9.64%(b) 9.74%(b) 9.41%(b)
RATIOS/SUPPLEMENTARY
DATA:
Net
Assets
at end
of
period
(000)... $2,273 $274,982 $ 169 $1,214 $219,014 $ 94 $ 35 $148,782 $ 20
Ratio of
expenses
to
average
net
assets... 0.82%(c) 0.57%(c) 1.56%(c) 0.84% 0.60% 1.59% 0.91%(c) 0.68%(c) 1.68%(c)
Ratio of
net
investment
income
to
average
net
assets... 1.27%(c) 1.52%(c) 0.53%(c) 1.40% 1.76% 0.70% 1.03%(c) 2.38%(c) 1.13%(c)
Ratio of
expenses
to
average
net
assets*... 1.02%(c) 0.77%(c) 1.76%(c) 1.04% 0.80% 1.79% 1.10%(c) 0.88%(c) 1.88%(c)
Ratio of
net
investment
income
to
average
net
assets*... 1.07%(c) 1.32%(c) 0.33%(c) 1.20% 1.56% 0.50% 0.85%(c) 2.18%(c) 0.92%(c)
Portfolio
Turnover
(d)..... 27% 27% 27% 56% 56% 56% 5% 5% 5%
Average
commission
rate
paid
(e)..... $0.0302 $0.0302 $0.0302 $0.0351 $ 0.0351 $0.0351
</TABLE>
- ---------
*During the period certain fees were voluntarily reduced. If such voluntary fee
reductions had not occurred the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
(e) Represents the dollar amount of commissions paid on Portfolio transactions
divided by the total number of shares purchased and sold for which
commissions were charged and is calculated on the basis of the Portfolio as
a whole without distinguishing between the classes of shares issued.
Disclosure not required for periods prior to fiscal 96.
See notes to financial statements.
-101-
<PAGE> 102
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERNATIONAL OPPORTUNITIES FUND
----------------------------------------------------------------------------------------------------------
FOR THE SIX MONTHS
ENDED JANUARY 31, 1997
-------------------------------- FOR THE YEAR ENDED JULY 3, 1995 TO
JULY 31, 1996 JULY 31, 1995 (A)
(UNAUDITED) -------------------------------- -------------------------------
CLASS A CLASS Y CLASS C CLASS A CLASS Y CLASS C CLASS A CLASS Y CLASS C
------- -------- ------- ------- -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.............. $10.64.. $ 10.69 $ 10.63 $ 10.45 $ 10.48 $ 10.46 $10.00 $ 10.00 $10.00
------- -------- ------- ------- -------- ------- ------- ------- -------
Investment Activities
Net investment
income(loss)...... 0.02 0.03 (0.03) 0.07 0.09 0.03 -- 0.01 (0.01)
Net realized and
unrealized gains
(losses) from
investments....... -- -- -- 0.17 0.18 0.17 0.45 0.47 0.47
------- -------- ------- ------- -------- ------- ------- ------- -------
Total from
Investment
Activities...... 0.02 0.03 (0.03) 0.24 0.27 0.20 0.45 0.48 0.46
------- -------- ------- ------- -------- ------- ------- ------- -------
Distributions
Net investment
income............ (0.06) (0.08) (0.02) (0.05) (0.06) (0.03) -- -- --
Net realized
gains............. (0.03) (0.03) (0.03) -- -- -- -- -- --
------- -------- ------- ------- -------- ------- ------- ------- -------
Total
distributions... (0.09) (0.11) (0.05) (0.05) (0.06) (0.03) -- -- --
------- -------- ------- ------- -------- ------- ------- ------- -------
NET ASSET VALUE, END
OF PERIOD........... $ 10.57 $ 10.61 $ 10.55 $ 10.64 $ 10.69 $ 10.63 $10.45 $ 10.48 $10.46
======= ======== ======= ======= ======== ======= ======= ======= =======
Total
Return -- excluding
sales and redemption
char................ 0.20%(b) 0.26%(b) 0.26%(b) 2.29% 2.56% 1.92% 4.50%(b) 4.80%(b) 4.60%(b)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)...... $ 1,689 $165,732 $ 22 $ 1,986 $142,478 $ 19 $ 20 $60,073 **
Ratio of expenses to
average net
assets.............. 1.02%(c) 0.77%(c) 1.76%(c) 1.06% 0.81% 1.78% 1.40%(c) 1.18%(c) 2.18%(c)
Ratio of net
investment income to
average net
assets.............. 0.56%(c) 0.81%(c) (0.18%)(c) 0.84% 1.18% 0.41% 0.23%(c) 1.32%(c) 0.32%(c)
Ratio of expenses to
average net
assets*............. 1.32%(c) 1.07%(c) 2.06%(c) 1.35% 1.10% 2.06% 1.54%(c) 1.39%(c) 2.39%(c)
Ratio of net
investment income to
average net
assets*............. 0.26%(c) 0.51%(c) (0.48%)(c) 0.55% 0.89% 0.13% 0.09%(c) 1.12%(c) 0.12%(c)
Portfolio Turnover
(d)................. 2% 2% 2% 6% 6% 6% 0% 0% 0%
Average commission
rate paid (e)....... $0.0226 $ 0.0226 $0.0226 $0.0221 $ 0.0221 $0.0221
</TABLE>
- ---------
*During the period certain fees were voluntarily reduced. If such voluntary fee
reductions had not occurred the ratios would have been as indicated.
**Net assets are less than $1,000.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
(e) Represents the dollar amount of commissions paid on Portfolio transactions
divided by the total number of shares purchased and sold for which commissions
were charged and is calculated on the basis of the Portfolio as a whole without
distinguishing between the classes of shares issued. Disclosure not required for
periods prior to fiscal 96.
See notes to financial statements.
-102-
<PAGE> 103
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ALLOCATED CONSERVATIVE FUND
----------------------------------------------------------
FOR THE SIX MONTHS ENDED FROM MAY 1, 1996 TO
JANUARY 31, 1997 JULY 31, 1996(A)
------------------------ ------------------------
CLASS A CLASS Y CLASS A CLASS Y
------- ------- ------- -------
(UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................... $ 9.95 $ 9.96 $10.00 $10.00
------ ------ ------ ------
Investment Activities
Net investment income................................. 0.21 0.20 0.10 0.08
Net realized and unrealized (losses) from
investments......................................... 0.58 0.62 (0.12) (0.09)
------ ------ ------ ------
Total from Investment Activities................ 0.79 0.82 (0.02) (0.01)
------ ------ ------ ------
Distributions
Net investment income loss............................ (0.24) (0.25) (0.03) (0.03)
------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD.......................... $10.50 $10.53 $ 9.95 $ 9.96
====== ====== ====== ======
Total return--excluding sales charge.................... 8.08% (b) 8.34% (b) (0.18)% (b) (0.08)% (b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)....................... $1,151 $9,060 $ ** $7,573
Ratio of expenses to average net assets................. 0.63% (c) 0.39% (c) 0.00% (c) 0.34% (c)
Ratio of net investment income to average net assets.... 3.47% (c) 3.91% (c) 3.96% (c) 3.77% (c)
Portfolio Turnover(d)................................... 4 % 4 % 3 % 3 %
</TABLE>
- ---------
** Net assets are less than $1,000.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
-103-
<PAGE> 104
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ALLOCATED BALANCED FUND
----------------------------------------------------------
FOR THE SIX MONTHS ENDED FROM MAY 1, 1996 TO
JANUARY 31, 1997 JULY 31, 1996(A)
------------------------ ------------------------
CLASS A CLASS Y CLASS A CLASS Y
------- ------- ------- -------
(UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................... $ 9.74 $ 9.75 $10.00 $ 10.00
------ ------- ------ -------
Investment Activities
Net investment income................................. 0.15 0.15 0.08 0.06
Net realized and unrealized (losses) from
investments......................................... 1.08 0.99 (0.31) (0.28)
------ ------- ------ -------
Total from Investment Activities................ 1.23 1.14 (0.23) (0.22)
------ ------- ------ -------
Distributions
Net investment income................................. (0.17) (0.18) (0.03) (0.03)
------ ------- ------ -------
NET ASSET VALUE, END OF PERIOD.......................... $10.80 $ 10.71 $ 9.74 $ 9.75
====== ======= ====== =======
Total return--excluding sales charge.................... 12.76% (b) 11.78%(b) (2.31)% (b) (2.21)%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)....................... $3,863 $67,256 $ ** $38,283
Ratio of expenses to average net assets................. 0.53% (c) 0.25%(c) 0.00% (c) 0.22% (c)
Ratio of net investment income to average net assets.... 2.56% (c) 3.04%(c) 3.20% (c) 2.67% (c)
Portfolio Turnover(d)................................... 5 % 5% 4 % 4%
</TABLE>
- ---------
** Net assets are less than $1,000.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
-104-
<PAGE> 105
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ALLOCATED GROWTH FUND
----------------------------------------------------------
FOR THE SIX MONTHS ENDED FROM MAY 1, 1996 TO
JANUARY 31, 1997 JULY 31, 1996(A)
------------------------ ------------------------
CLASS A CLASS Y CLASS A CLASS Y
------- ------- ------- -------
(UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................... $ 9.74 $ 9.72 $10.00 $ 10.00
------ ------- ------ -------
Investment Activities
Net investment income................................. 0.10 0.10 0.05 0.04
Net realized and unrealized (losses) from
investments......................................... 1.40 1.30 (0.28) (0.29)
------ ------- ------ -------
Total from Investment Activities................ 1.50 1.40 (0.23) (0.25)
------ ------- ------ -------
Distributions
Net investment income................................. (0.11) (0.11) (0.03) (0.03)
------ ------- ------ -------
NET ASSET VALUE, END OF PERIOD.......................... $11.13 $ 11.01 $ 9.74 $ 9.72
====== ======= ====== =======
Total return--excluding sales charge.................... 15.54% (b) 14.60%(b) (2.32)% (b) (2.52)%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)....................... $5,436 $13,670 $ ** $10,801
Ratio of expenses to average net assets................. 0.56% (c) 0.29%(c) 0.00% (c) 0.31% (c)
Ratio of net investment income to average net assets.... 1.51% (c) 2.04%(c) 1.99% (c) 1.58% (c)
Portfolio Turnover(d)................................... 4 % 4% 4 % 4%
</TABLE>
- ---------
** Net assets are less than $1,000.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
-105-
<PAGE> 106
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ALLOCATED AGGRESSIVE FUND
----------------------------------------------------------
FOR THE SIX MONTHS ENDED FROM MAY 1, 1996 TO
JANUARY 31, 1997 JULY 31, 1996(A)
------------------------ ------------------------
CLASS A CLASS Y CLASS A CLASS Y
------- ------- ------- -------
(UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................... $ 9.64 $ 9.60 $10.00 $10.00
------ ------ ------ ------
Investment Activities
Net investment income (loss).......................... 0.05 0.06 (0.01) 0.02
Net realized and unrealized (losses) from
investments......................................... 1.60 1.59 (0.33) (0.40)
------ ------ ------ ------
Total from Investment Activities.................... 1.65 1.65 (0.34) (0.38)
------ ------ ------ ------
Distributions
Net investment income................................. (0.05) (0.06) (0.02) (0.02)
------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD.......................... $11.24 $11.19 $ 9.64 $ 9.60
====== ====== ====== ======
Total return............................................ 17.20% (b) 17.29% (b) (3.38)% (b) (3.78)% (b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)....................... $ 272 $1,612 $ 2 $8,207
Ratio of expenses to average net assets................. 0.59% (c) 0.32% (c) 0.57% (c) 0.35% (c)
Ratio of net investment income to average net assets.... 0.62% (c) 1.10% (c) (0.30% )(c) 0.70% (c)
Portfolio Turnover(d)................................... 19% 19% 18% 18%
</TABLE>
- ---------
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
-106-
<PAGE> 107
QUALIVEST MUTUAL FUNDS
3435 Stelzer Road
Columbus, Ohio 43219-3035
INVESTMENT ADVISER
Qualivest Capital Management, Inc.
P.O. Box 2758
Portland, Oregon 97208
ADMINISTRATOR & DISTRIBUTOR
BISYS Fund Services
3435 Stelzer Road
Columbus, Ohio 43219-3035
LEGAL COUNSEL
Dechert Price & Rhoads
1500 K Street, N.W.
Washington, D.C. 20005
AUDITORS
Deloitte & Touche LLP
1700 Courthouse Plaza Northeast
Dayton, Ohio 45402
This report is submitted for the general information of the shareholders of the
Funds. It is not authorized for distribution to prospective investors in the
Funds unless proceded or accompanied by a prospectus. To obtain a prospectus
for any of the Qualivest Mutual 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.
QUALIVEST
SEMI-ANNUAL
REPORT
JANUARY 31, 1997
o Small Companies Value Fund
o International Opportunities Fund
o Large Companies Value Fund
o Optimized Stock Fund
o Diversified Bond Fund
o Intermediate Bond Fund
o Money Market Fund
o Tax-Free Money Market Fund
o U.S. Treasury Money Market Fund
o Allocated Conservative Fund
o Allocated Balanced Fund
o Allocated Growth Fund
o Allocated Aggressive Fund
MUTUAL FUNDS:
o Are not insured by the FDIC
o Are not deposits or other obligations
of, or guaranteed by, any bank
o Are subject to investment risk, including
the possible loss of the principal amount
invested
o May involve sales charges and other fees
[LOGO] QUALIVEST
------------
Mutual Funds
QUA-0030
3/97
