<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
INDEPENDENT AUDITORS' REPORT 22
STATEMENTS OF ASSETS
AND LIABILITIES 23
STATEMENTS OF OPERATIONS 27
STATEMENTS OF CHANGES
IN NET ASSETS 31
SCHEDULES OF PORTFOLIO INVESTMENTS 36
NOTES TO FINANCIAL STATEMENTS 86
FINANCIAL HIGHLIGHTS 103
</TABLE>
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<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>
QUALIVEST FUND OBJECTIVE PORTFOLIO CONSISTS PRIMARILY OF . . . DESIGNED FOR INVESTORS WHO . . .
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<S> <C> <C> <C>
STOCK FUNDS
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Qualivest Small Capital appreciation Small U.S. companies that the Have a long time horizon, seek
Companies Value portfolio manager believes to be significant investment growth and
Fund(1) undervalued and to have superior can accept higher-than- average
growth potential volatility
Qualivest Capital appreciation Stocks of companies outside the U.S. Have a long time horizon, seek
International that are included in the MSCI EAFE significant investment growth and
Opportunities Fund(2) Index(3) can accept a higher-than-average
volatility
Qualivest Large Long-term capital Large U.S. companies whose stocks are Have a medium-to-long time
Companies Value Fund appreciation considered by the portfolio manager to horizon and seek investment
be undervalued growth
Qualivest Optimized Capital appreciation Stocks in the S&P 500 Stock Index,(4) Have a medium-to-long time
Stock Fund and current income emphasizing top-performing stocks horizon and seek investment
growth and income
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BOND FUNDS
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Qualivest Diversified Current income and Securities issued by the U.S. Seek current income
Bond Fund preservation of government and its agencies, and
capital mortgage-related securities and
corporate bonds with 7-11 year average
maturity
Qualivest Current income and Securities issued by the U.S. Seek current income
Intermediate Bond preservation of government and its agencies, and
Fund capital corporate bonds with 3-7 year average
maturity
</TABLE>
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<PAGE> 3
<TABLE>
<CAPTION>
QUALIVEST FUND OBJECTIVE PORTFOLIO CONSISTS PRIMARILY OF . . . DESIGNED FOR INVESTORS WHO . . .
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<S> <C> <C> <C>
MONEY MARKET FUNDS(5)
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Qualivest Money Current income, High-quality, short-term money market Seek a convenient way to
Market Fund liquidity and instruments accumulate cash while waiting for
stability of other investment opportunities
principal
Qualivest Tax-Free Income free from High-quality, municipal money market Seek a tax-free way to accumulate
Money Market Fund(6) federal income tax securities cash while waiting for other
and stability of investment opportunities
principal
Qualivest U.S. Current income, Money market securities issued or Seek a convenient way to
Treasury Money Market liquidity and guaranteed by the U.S. government or accumulate cash while waiting for
Fund stability of its agencies other investment opportunities
principal
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ASSET ALLOCATION FUNDS
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Qualivest Allocated Current income, with Qualivest stock, bond and money market Seek current income
Conservative Fund appreciation of funds
long-term capital a
secondary objective
Qualivest Allocated Long-term capital Qualivest stock and bond funds Seek a combination of capital
Balanced Fund appreciation and appreciation and income
current income
Qualivest Allocated Capital appreciation Qualivest stock and bond funds Have a medium-to-long time
Growth Fund and income growth horizon and seek investment
growth
Qualivest Allocated Maximum capital Qualivest stock funds Have a long time horizon and seek
Aggressive Fund appreciation 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 Europe, Australasia, 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 assurance that these Funds will be able to
maintain a stable net asset value 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.
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<PAGE> 4
A GUIDE TO YOUR SHAREHOLDER REPORT
As a mutual fund shareholder, you will 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 ECONOMIC 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 PORTFOLIO REVIEWS WITH THE FUND MANAGERS provide you with information about
each Fund's performance, investment strategy as well as 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.
[Balance Sheet Graphic]
ASSETS: summarizes the Fund's assets stated at market
value, including investments owned, dividends, interest
and other amounts owed to each Fund by outside parties
and any other assets owned by the Fund
LIABILITIES: summarizes all amounts owed by the Fund,
including distributions declared but not yet paid to
shareholders and other amounts owed to outside parties
NET ASSETS (assets minus liabilities): summarizes the
amounts that 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.
[Statement of Operations Graphic]
INVESTMENT INCOME: includes dividend and interest
income earned by the investments in the Fund
EXPENSES: lists expenses incurred by the Fund
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
summarizes gains or losses realized from selling the
Fund's investments
Change in net assets due to Fund operations
<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.
[Statement of Changes in Net Assets Graphic]
See Statement of Operations
Distributions declared to shareholders from net
investment income or net realized gains during the
period
Dollar amount of mutual fund shares issued, reinvested
or redeemed
Compares total net assets as of the end of the current
and prior periods
Share Transactions lists the number of Fund shares
issued, reinvested and redeemed
The SCHEDULE OF PORTFOLIO INVESTMENTS lists each investment holding in the Fund
as of the date of the report. Investments are usually grouped by category (by
industry or security type, for example). The percentage of the Fund's net assets
represented by these groupings is also indicated.
[Schedule of Portfolio Investments Graphic]
Type of security
Industry sector and percentage of the Fund's net assets
represented by investments in that sector (if
applicable)
Individual portfolio holdings with number of shares and
market value as of the date of the report
The NOTES TO FINANCIAL STATEMENTS describe in more detail certain Fund
procedures and activities, such as accounting procedures, contractual
arrangements between the Fund and its service providers, specialized Fund
transactions and other general information about the Fund.
The FINANCIAL HIGHLIGHTS summarizes Fund activity as it affects a single Fund
share, including net investment income, realized and unrealized gains and
losses, and dividends and distributions of the Fund. This section also gives key
data, such as the total investment return for each period, the portfolio
turnover rate (an indication of portfolio activity) and the ratios of expenses
and net investment income to average net assets.
The financial statements and financial highlights included in annual reports are
audited by an independent public accounting firm and cover the activity for the
past fiscal year. A semi-annual report is a six-month interim report that
includes financial statements that will not be audited by an independent
accounting firm.
<PAGE> 6
QUALIVEST FUNDS
Annual Report
July 31, 1997
CHAIRMAN'S LETTER
Dear Shareholders:
It is my pleasure to present the annual report of the Qualivest Mutual Funds for
the year ended July 31, 1997.
The bull market in stocks celebrated its 15th anniversary in early August.
During that 15-year period, the Dow Jones Industrial Average zoomed from 777 on
August 12, 1982, to more than 8,000 in August 1997--more than a ten-fold
increase.
By today's standards, stocks looked very inexpensive in 1982. According to The
Wall Street Journal, the average dividend yield on the 30 blue-chip stocks in
1982 was 7.2%. In comparison, today's yield is about 1.5%. Fifteen years ago,
the average price-earnings ratio on the stocks in the Standard & Poor's 500
Stock Index was 7.5. Now, it is about 23 times trailing earnings.
Of course, today's stock market environment is vastly different than it was in
the early 1980s. Inflation is now just a fraction of what it was fifteen years
ago. The Cold War is over; trade barriers have been lowered or eliminated; and
the computer revolution has made us more productive than ever before. Billions
of dollars are flooding into the stock market through mutual funds. Companies
are merging to become more competitive and to better serve their markets.
The financial services industry has been such an area of consolidation in recent
years. Indeed, as many of you know, Minnesota-based First Bank System Inc. and
Portland-based U.S. Bancorp merged effective August 1, 1997. On that date, First
Asset Management, the money management arm of First Bank System, became the
investment adviser to the Qualivest Mutual Funds, which have been associated
with U.S. Bancorp since their inception on August 1, 1994. First Asset
Management manages $42 billion in assets through individual accounts and mutual
funds for individuals, institutions, endowments and foundations.
Sincerely,
Irimga McKay Signature
Irimga McKay
Senior Vice President Qualivest Mutual Funds
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.
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<PAGE> 7
MARKET REVIEW AND ECONOMIC OUTLOOK
FROM QUALIVEST CAPITAL MANAGEMENT
The stock market continued to be very robust during the fiscal year ended July
31, 1997, with the Standard & Poor's 500 index posting a 52.11% return. The two
primary reasons for this excellent performance are relatively low interest rates
and stronger than expected corporate profits. Profits for the second quarter of
1997 continued to surprise analysts on the upside. And in July, interest rates
fell sharply, providing icing to the cake for the fiscal period.
During the fiscal year, the Federal Reserve Board made just one move. On March
25, 1997, the Fed boosted short-term interest rates by 0.25 percentage points to
5.50% in response to torrid economic growth in the first quarter of 1997. With
that, the Fed acted quickly to signal that it was not going to allow excessive
growth. Because it is widely agreed that the U.S. economy cannot continue to
grow at a 5.8% rate without renewed inflation, the stock market suffered a
pullback of nearly 10% in early spring. Investors were also concerned that
another Fed move was coming in May.
Instead, the economy began to show signs of slowing in the second quarter, and
the Fed elected to leave interest rates alone. This ignited another leg of the
bull market, as stocks rose to record highs. The scenario was reaffirmed by
Federal Reserve Chairman Alan Greenspan's summer testimony to Congress in which
he said that the economy is growing moderately, but not too fast to ignite
inflation. As a result, we continue to find ourselves in an ideal "sweet spot"
from an investment management point of view. As long as everything stays the
same, we do not see a reason for the market to stop moving forward.
THE STOCK MARKET: SLOWING PROFITS
PROVIDE A CEILING
Of course, the world does not stay the same for very long. At these lofty
levels, the stock market scenario is somewhat fragile to anything less than
perfect conditions. The most likely change is a slowdown in corporate profits.
If corporate profits slow as we anticipate, then the market is likely to
readjust accordingly. With an economy that is moving ahead fairly slowly, it's
unlikely that major U.S. corporations, which posted very robust earnings through
the second quarter, can continue to show buoyant earnings growth.
Consensus earnings estimates on the S&P 500 Index companies for the rest of the
year is 8% quarter-over-quarter growth compared with 1996. That is in contrast
to the double-digit growth that we've seen in the past several quarters. With a
stock market that's priced at 20 times earnings, there is a wide gap between the
price of the market and the expected growth rate in earnings. The result could
be a readjustment of stock prices to a slower growing earnings stream. Although
the news on earnings has been pleasant for a long time, we do not anticipate
these surprising upswings in earnings to continue much longer.
BONDS: SMOOTHER SAILING AHEAD
A slower economy may not be good for stocks, but investors in bonds are usually
happier. Sluggish growth cuts down the demand for borrowing, which in turn
should lower interest rates.
Given an inflation rate of about 2%, the real rate of interest on the 30-year
Treasury bond is about 4.5%. That's at least one percentage point above the
typical spread over inflation. As a result, the interest rate environment is
relatively high and it acts as a fundamental constraint on the economy. The
second quarter of 1997, in which GDP grew 2.2%, was more normal in terms of
economic growth given the interest rate environment.
A second factor that is restricting growth in the economy--and exerting downward
pressure on interest rates--is the federal government's new spending habits.
Even without the agreement between Congress and the President to balance the
budget in 2002, the federal budget deficit has come down dramatically. For
fiscal 1997, recent reports suggest a budget deficit of about $35 billion, or
just half of one percent of the Gross Domestic Product.
With continuing low inflation, a shrinking budget deficit and a slow-growing
U.S. economy, the trend for interest rates is downward, a bullish sign for the
bond market.
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<PAGE> 8
QUALIVEST SMALL COMPANIES VALUE FUND*
For the year ended July 31, 1997, the Fund produced a total return of 41.71% (A
shares at NAV). In comparison, the Russell 2000 Index returned 33.40% during the
same period.
The performance of the Qualivest Small Companies Value Fund is measured
against the Russell 2000 Index, an unmanaged index generally representative of
the performance of small company stocks. The index does not reflect the
deduction of expenses associated with a mutual fund, such as investment
management and fund accounting fees. The Fund's performance reflects the
deduction of fees for these value-added services. Past performance is not
indicative of future results. The investment return and NAV will fluctuate, so
that an investor's shares, when redeemed, may be worth more or less than the
original cost.
<TABLE> QUALIVEST SMALL COMPANIES VALUE FUND
<CAPTION> VALUE OF A $10,000 INVESTMENT
Measurement Period Russell
(Fiscal Year Covered) Class A* Class C** Class Y 2000 Index
<S> <C> <C> <C> <C>
1/1/88
7/31/88
7/31/89
7/31/90
7/31/91
7/31/92
7/31/93
7/31/94
7/31/95
7/31/96
7/31/97
</TABLE>
* Reflects 4.50% Sales Charge
** Reflects Applicable Contingent Deferred Sales Charge
This performance includes performance of certain collective 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.
* 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.
Generally, the strategy of the portfolio is to invest in small capitalization
stocks that are out of favor on Wall Street. Our goal is to find undervalued
companies, and it doesn't matter whether we're in an environment where the Dow
Jones Industrial Average is at 6,000 or 8,000.
Big winners were Catalytica, Inc. (2.2% of the portfolio), who is responsible
for many operations, such as making intermediate chemicals for pharmaceutical
companies. They recently purchased a 1.8 million square-foot manufacturing
facility that could boost revenues in this segment from $9 million in 1996 to
$300 million in 1998. Their stock was up 290% during the fiscal year. Suiza
Foods (0.8%), with operations in dairy products and ice, rose 168% during the
period as it continued to purchase smaller mom-and-pop dairy companies and ice
vendors. Astoria Financial (0.4%), a New York-based savings and loan, continued
to perform well as the New York region's economy rebounded. In general, the
finance sector remained very robust for this whole period of time.
Although large-capitalization technology companies performed strongly during the
year, the small-cap technology area posted mixed results. Applied Magnetics
(4.0%), a major holding in the portfolio, had been rising due to takeover
rumors. When those rumors proved false, the stock dropped significantly.
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<PAGE> 9
However, we believe that Wall Street is underestimating the company's earnings
potential.
The S&P 500 index currently sells at about 20 times 1998 earnings. In contrast,
this portfolio's stocks sell at an average price-earnings multiple of about 12.5
times next year's earnings. Therefore, we are sticking to our style of investing
in stocks that are inexpensive relative to their peers.
As of July 31, 1997, the top five holdings in the Fund were Applied Magnetics
(4.0%), Tucson Electric Power Co. (3.4%), Fremont General Corp. (2.6%),
Catalytica, Inc. (2.2%) and Moog, Inc. (1.9%).(1)
(1) The composition of the Fund's holdings is subject to change.
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<PAGE> 10
QUALIVEST INTERNATIONAL OPPORTUNITIES FUND*
For the year ended July 31, 1997, the Fund produced a total return of 17.03% (A
shares at NAV). In comparison, the Morgan Stanley Capital International (Europe,
Australia and Far East) EAFE Index returned 18.45% during the period.
<TABLE>
<CAPTION>
Morgan Stanley
Measurement Period International
(Fiscal Year Covered) Class A Class C Class Y EAFE
<S> <C> <C> <C> <C>
7/3/95 9551 10000 10000 10000
7/31/95 9981 10360 10480 10625
7/31/96 10209 10661 10749 11033
7/31/97 11947 12377 12602 13031
</TABLE>
The performance of the Qualivest International Opportunities Fund is measured
against the Morgan Stanley International EAFE Index, an unmanaged Index
generally representative of the performance of the stock markets in Europe,
Australasia, and the Far East. The index does not reflect the deduction of
expenses associated with a mutual fund, such as investment management and fund
accounting fees. The Fund's performance reflects the deduction of fees for
these value-added services. Past performance is not indicative of future
results. The investment return and NAV will fluctuate, so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
* International investing involves increased risk and volatility.
By investing in about 700 stocks, the International Opportunities Fund attempts
to match 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.
Representing about 65% of the EAFE index, the top four country holdings are
France, Germany, Japan and the United Kingdom.
Japan continues to underperform within the context of the EAFE Index. For the
year ending July 31, 1997, the Japan component produced a -7.5% return. In
contrast, Europe continues to show strength, and the United Kingdom's returns
are rivaling the U.S. stock market.
During the fiscal year, Hong Kong was added to the EAFE Index and now represents
about 4% of its total market capitalization. During the three months ended July
31, 1997, the Hong Kong component generated a return of 26% in dollar terms. As
you'll recall, it was during this period that the country was transferred from
British to Chinese control.
In most years, of course, an 18% EAFE return would be considered stellar.
However, it is being compared
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<PAGE> 11
to a U.S. stock market that was up more than 50% during the period. Two factors
are working against international stocks. One such factor is Japan's struggling
economy for the past several years. Because of the country's underperformance,
its relative weighting in EAFE has declined from roughly 40% in the mid-1990s to
30% today. Recently, NTT (0.9% of the portfolio), Japan's leading
telecommunications company, was added to the Fund, and we are hopeful that this
company's performance will offset some of Japan's poorly performing banks.
Another dampening factor on EAFE is the strong U.S. dollar. As the dollar
strengthens, foreign returns translate into fewer U.S. dollars, thus reducing
EAFE's dollar return.
The primary advantage of international investing is that it provides
diversification to a portfolio. Typically, international stocks perform
independently of the U.S. stock market. In a period in which domestic stocks
perform poorly, investors can look forward to different returns from an
international portfolio. That's particularly true because the U.S. dollar would
likely weaken in such an environment, possibly enhancing EAFE's return in dollar
terms.
As of July 31, 1997, the top five holdings in the Fund were Royal Dutch
Petroleum (1.8%), Toyota Motor Corp. (1.7%), Novartis AG (1.5%), Bank of Tokyo
Mitsubishi (1.3%) and British Petroleum Co. (1.2%).(1)
(1) The composition of the Fund's holdings is subject to change.
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<PAGE> 12
QUALIVEST LARGE COMPANIES VALUE FUND
For the year ended July 31, 1997, the Fund produced a total return of 43.71% (A
shares at NAV). In comparison, the Standard & Poor's 500 Stock Index produced
returns of 52.11% during the same period. The Lipper Growth and Income Fund
Index returned 44.14% during the period.
<TABLE> QUALIVEST LARGE COMPANIES VALUE FUND
<CAPTION> VALUE OF A $10,000 INVESTMENT
Measurement Period S&P 500
(Fiscal Year Covered) Class A* Class C** Class Y Stock Index
<S> <C> <C> <C> <C>
8/1/94
7/31/95
7/31/96
7/31/97
</TABLE> * Reflects 4.50% Sales Charge
** Reflects Applicable Contingent Deferred Sales Charge
The performance of the Qualivest Large Companies Value Fund is measured
against the S&P 500 Stock Index, an unmanaged index generally representative
of the performance of U.S. stocks. The index does not reflect the deduction of
expenses associated with a mutual fund, such as investment management and fund
accounting fees. The Fund's performance reflects the deduction of fees for
these value-added services. Past performance is not indicative of future
results. The investment return and NAV will fluctuate, so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
During the fiscal year, the two best performing industry groups were technology
and finance. In technology, shares of Texas Instruments, Inc. (0.3% of the
portfolio), Advanced Micro Devices, Inc. (0.6%) and National Semiconductor Corp.
(1.2%) essentially tripled in price. IBM Corp. (2.8%) roughly doubled in value
during the period, primarily due to effective cost cutting.
Texas Instruments refocused its business on semiconductors, selling off its
defense/electronics division and its laptop computer unit. The company's new CEO
decided to emphasize the company's strong base in digital signal processors,
which are specialized microprocessors that are used in cellular telephones. In
general, the entire semiconductor industry had an excellent twelve-month period,
coming off a slump in mid-1996.
Another very strong area in the portfolio was financial services. For example,
for the twelve-month period, Travelers, Inc. (2.0%) more than doubled in price.
Travelers owns the Smith Barney brokerage firm, the Traveler's insurance company
and an asset management division. The stock was purchased a few years ago at
about eight times earnings. Since that time, earnings have doubled, and so has
the p-e multiple. As a result, the stock has quadrupled since we've owned it.
Other strong areas included pharmaceuticals and energy. In 1993, when the
Clinton Administration launched an initiative to overhaul the health-care
industry, drug stocks were selling at very low multiples of earnings. Today,
these stocks are selling at anywhere from 25 to 40 times earnings. One of our
most successful stocks during the period was
-11-
<PAGE> 13
Schering-Plough (1.7%), which nearly doubled in price.
In energy, we have found oil service stocks attractive. When the price of oil
dropped from $25 to below $20 early in 1997, shares of Global Marine (1.4%) and
Reading & Bates (1.3%) dropped sharply in price. Even though oil prices
recovered and remained at about $20 per barrel as of July 31, 1997, the prices
of these stocks rose sharply and maintained their higher price levels.
The portfolio has also invested in a number of out-of-favor areas such as autos,
paper and retailing. In the auto industry, Ford Motor Co. (1.9%) has been a good
performer. Although the auto industry is cyclical, Ford appears to be a good
value at just 8 times earnings. In the paper industry, earnings have exceeded
expectations in such companies as International Paper (0.3%). In retailing,
Waban, Inc. split into two companies--BJ's Wholesale (1.4%) and Home Base
(0.4%)--and the sum of the parts have turned out to be greater than the whole.
Rite-Aid (1.2%) is a successful drug store chain which is acquiring mom-and-pop
drug stores and achieving economies of scale.
The portfolio's beta(2) is 0.78, suggesting lower volatility historically than
the Standard & Poor's 500 index. A low beta suggests that the portfolio's return
is likely to move up or down a smaller percentage of changes in the index.
As of July 31, 1997, the top five holdings in the Fund were Kennamental, Inc.
(3.0%), IBM Corp. (2.8%), Boise Cascade Corp. (2.7%), Sun Healthcare Group
(2.7%) and Advanta Corp. (2.1%).(1)
(1) The composition of the Fund's holdings is subject to change.
(2) Beta measures a stock's relative risk compared to the rest of the stock
market. The Standard & Poor's 500 index has a beta of 1. A stock with a
lower beta, such as those included in the Large Companies Value Fund, may be
expected to rise and fall more slowly than the market, whereas a stock with
a beta higher than 1 has a riskier relation to the market.
-12-
<PAGE> 14
QUALIVEST OPTIMIZED STOCK FUND
For the year ended July 31, 1997, the Fund produced a total return of 52.52% (A
shares at NAV). In comparison, the Standard & Poor's 500 Stock Index produced
returns of 52.11% during the same period.
<TABLE> QUALIVEST OPTIMIZED STOCK FUND
<CAPTION> VALUE OF A $10,000 INVESTMENT
Measurement Period S&P 500
(Fiscal Year Covered) Class A* Class C** Class Y Stock Index
<S> <C> <C> <C> <C>
5/2/95
7/31/95
7/31/96
7/31/97
</TABLE> * Reflects 4.50% Sales Charge
** Reflects Applicable Contingent Deferred Sales Charge
The performance of the Qualivest Optimized Stock Fund is measured against the
S&P 500 Stock Index, an unmanaged index generally representative of the
performance of U.S. stocks. The index does not reflect the deduction of
expenses associated with a mutual fund, such as investment management and fund
accounting fees. The Fund's performance reflects the deduction of fees for
these value-added services. Past performance is not indicative of future
results. The investment return and NAV will fluctuate, so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
The Optimized Stock Fund attempts to beat the S&P 500 Index by using a
quantitative methodology, this methodology favors stocks that have seen positive
momentum in their share price and a higher-than-expected total return compared
to other securities in their industry. We also manage this portfolio for lower
turnover, which helps reduce capital gains taxes for our shareholders.
In contrast to most indexed funds, the portfolio attempts to generate excess
returns to offset management fees. Given the Fund's total return for the year,
we believe that our strategies are working quite well.
As of July 31, 1997, the top five holdings in the Fund were Intel Corp. (2.4%),
General Electric Co. (2.4%), Coca-Cola Co. (2.3%), Microsoft Corp. (1.8%) and
IBM Corp. (1.7%).(1)
(1) The composition of the Fund's holdings is subject to change.
-13-
<PAGE> 15
QUALIVEST INTERMEDIATE BOND FUND
For the year ended July 31, 1997, the Fund produced a total return of 7.73% (A
shares at NAV). In comparison, the Lehman Brothers Intermediate
Government/Corporate Bond Index returned 9.07%.
<TABLE>
<CAPTION>
Lehman
Intermediate
Measurement Period Gov't/Corporate
(Fiscal Year Covered) Class A Class C Class Y Bond Index
<S> <C> <C> <C> <C>
1/1/88 9656 10000 10000 10000
7/31/88 9750 10057 10116 10419
7/31/89 10873 10934 11108 11745
7/31/90 11534 11721 12026 12581
7/31/91 12676 12793 13258 13868
7/31/92 14382 14404 15075 15830
7/31/93 15540 15441 16322 17182
7/31/94 15650 15435 16479 17339
7/31/95 16694 16271 17813 18868
7/31/96 17351 16839 18552 19867
7/31/97 18693 18003 20021 21669
</TABLE>
The performance of the Qualivest Intermediate Bond Fund is measured against
the Lehman Brothers Intermediate Government/Corporate Bond Index, an unmanaged
index generally representative of the performance of intermediate government
and corporate bonds. The index does not reflect the deduction of expenses
associated with a mutual fund, such as investment management and fund
accounting fees. The Fund's performance reflects the deduction of fees for
these value-added services.
Past performance is not indicative of future results. The investment return
and NAV will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
This performance includes performance of certain collective 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.
Although interest rates traded within a fairly narrow range during the year,
they were still quite volatile. Because of our general view that interest rates
are trending downward, we tended to keep the portfolio's duration (sensitivity
to interest rates) slightly longer than our benchmark. Since bond prices move
inversely to interest rates, a longer than average duration would be favorable
in a period of falling interest rates.
There were some months during the past year in which interest rates moved 0.40
percentage points. That hurt the portfolio in February and March 1997, when
interest rates rose sharply, but helped the portfolio in July 1997, when rates
fell.
During the year, the portfolio was overweighted at times with mortgage-backed
securities, which offer substantially higher yield than Treasury bonds. We also
began to add some taxable municipal bonds to the portfolio. Taxable munis are
bonds issued by municipalities that represent additional financing beyond their
authorization to issue tax-exempt securities.
The portfolio also includes a smattering of corporate bonds such as Ford Motor
Credit (0.5% of the
-14-
<PAGE> 16
portfolio), Occidental Petroleum (0.5%) and Sears Roebuck Acceptance (0.5%).(1)
Because the U.S. economy is so healthy and credit concerns are muted, the yield
spreads offered by corporate bonds are quite narrow from historical norms.
At the same time, there is a great deal of demand for corporate bonds because
they still continue to offer as much as 0.70 percentage points over comparably
maturing U.S. Treasury bonds, whereas yields on the 30-year bond fell to 6.30%
on July 31, 1997.
Another bond strategy focuses on callability. Bonds that are callable give the
issuer the right to redeem the bond at par after a certain amount of time.
That's a disadvantage for investors in a falling interest rate environment. As a
result, callable bonds offer significantly higher yields to compensate for that
risk. To the extent that we own callable bonds, we are investing in those
securities where the call period is several years into the future.
As of July 31, 1997, the Federal funds rate--the amount the Federal Reserve
Board charges member banks for overnight borrowings--was 5.50%. The 30-year U.S.
Treasury bond was 6.30%. Typically, the extra yield on the 30-year bond is
significantly greater than 0.80 percentage points. For example, when the long
bond was 5.75% in 1993, the Federal funds rate was 3%. As a result, it is
unlikely that long-term interest rates can fall much further without the Fed
lowering short-term interest rates. Indeed, for bond prices to rise
significantly from this point, long-term interest rates would have to fall a
proportionate amount.
(1) The composition of the Fund's holdings is subject to change.
-15-
<PAGE> 17
QUALIVEST DIVERSIFIED BOND FUND
For the year ended July 31, 1997, the Fund produced a total return of 9.80% (A
shares at NAV) In comparison, the Lehman Brothers Aggregate Bond Index returned
10.78%.
<TABLE>
<CAPTION>
Lehman
Brothers
Measurement Period Aggregate Bond
(Fiscal Year Covered) Class A Class C Class Y Index
<S> <C> <C> <C> <C>
5/2/95 9653 10000 10000 10000
7/31/95 9949 10238 10458 10440
7/31/96 10326 10196 10910 11016
7/31/97 11337 11116 12023 12204
</TABLE>
The Performance of the Qualivest Diversified Bond Fund is measured against the
Lehman Brothers Aggregate Bond Index and the Lehman Brothers
Government/Corporate Bond Index, with each index given a 50% weighting. Both
indices are broad measures of the performance of the U.S. bond market. The
indices do not reflect the deduction of expenses associated with a mutual
fund, such as investment management and fund accounting fees. The Fund's
performance reflects the deduction of fees for these value-added services.
Past performance is not indicative of future results. The investment return
and NAV will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
Throughout the fiscal period, the portfolio's duration (sensitivity to interest
rates) has been longer than our benchmark. Because, the portfolio's bonds are
more sensitive to changes in interest rates. That's good when interest rates are
falling, because bond prices move inversely to changes in interest rates. Having
a longer duration hurt us in March but helped us in July.
The portfolio was underweighted in mortgage-backed securities, bonds that can be
refinanced when interest rates fall. In exchange for that right, mortgages pay
higher yields and hold up much better when interest rates are rising. During
periods when rates are falling, it is a disadvantage to hold these securities
because they can be redeemed, leaving the investor to reinvest at lower rates.
We tend to own mortgages that originated before 1993. These so-called seasoned
mortgages are less likely to refinance in a period of falling interest rates,
because the borrower has already had a chance to do so in a previous period of
falling rates. Generally, the decision to underweight mortgages has had a
positive impact on performance.
We elected to underrepresent the portfolio in corporates. The reason: The
economy has been expanding for such a long period of time that we believed it
was due for a slowdown, at which point investors would become concerned about
creditworthiness of corporate bonds. So far, that hasn't happened.
Our view is that the long-term prospects for bonds are favorable because of
favorable news on inflation. Historically, low unemployment has led to
inflation. But the U.S. economy is much more productive than ever before, and
the flow of goods across global borders is much freer. Since production tends to
flow to the lowest cost area, inflation is more likely to remain under control.
-16-
<PAGE> 18
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 July 31, 1997,
the Money Market Fund offered a seven-day yield of 4.76% and an effective
seven-day yield of 4.87% (Class A shares). As of July 31, 1997, the Fund's
average maturity was 31 days.
Qualivest U.S. Treasury Money Market Fund is comprised primarily of short-term
U.S. Treasury securities. As of July 31, 1997, the U.S. Treasury Money Market
Fund offered a seven-day yield of 4.69% and an effective seven-day yield of
4.80% (Class A shares). As of July 31, 1997, the Fund's average maturity was 62
days.
Qualivest Tax-Free Money Market Fund** is comprised primarily of short-term
tax-free municipal securities. As of July 31, 1997, the Tax-Free Money Market
Fund offered a seven-day yield of 2.84% and an effective seven-day yield of
2.88% (Class A shares). As of July 31, 1997, the Fund's average maturity was 39
days.
During the fiscal year, the Federal Reserve Board raised short-term rates only
once--0.25 percentage points to 5.50% on March 25, 1997. Yields on short-term
instruments rose by a similar amount. As of July 31, 1997, the Fed indicated
that it doesn't see any immediate threat of renewed inflation. Money market
yields have remained steady throughout the period.
Treasury bill yields have actually fallen due to increased worldwide demand. In
addition, as the federal budget deficit shrinks, the supply of Treasury
securities of all maturities goes down. As the supply of bonds shrinks and the
demand increases, yields fall.
Commercial paper yields tend to be slightly higher than the Federal Funds rate
to reflect the slight credit risk of the corporate issuer. The vast majority of
commercial paper issuers are in the financial services industry.
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 guess the direction of
interest rates.
In the tax-free area, our emphasis has been on using one- and seven-day
variable-rate issues rather than longer term fixed-rate issues. The variable
rate securities offer attractive yields and flexibility.
Although there are signs of renewed strength in the economy, our outlook is for
continued stable interest rates and low inflation. If the Federal Reserve Board
chooses to raise rates later in the year, then yields on taxable money market
funds should rise accordingly. Yields on tax-free money market funds are less
determined by Fed policy than by supply-and-demand forces in the market.
* 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. The total return set forth may reflect the
waiver of a portion of the fund's advisory or administrative fees for certain
periods since the inception date. In such instances, and without waiver if
fees, total returns would have been lower.
-17-
<PAGE> 19
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.
True to the strategy that we designed for the Qualivest Dynamic Allocation
Series, the more aggressive funds performed better during the past fiscal year
due to their increased exposure to the stock market:
<TABLE> QUALIVEST ALLOCATED AGGRESSIVE FUND
<CAPTION> VALUE OF A $10,000 INVESTMENT
Measurement Period Portfolio 1
(Fiscal Year Covered) Class A* Class Y Index
<S> <C> <C> <C>
5/1/96
7/31/96
7/31/97
</TABLE> * Reflects 4.00% Sales Charge
The performance of the Qualivest Allocated Aggressive Fund is measured against
a benchmark of blended indices which represent the market of investments based
on the allocation. (55%--S&P 500 Stock Index, 20%--Russell 2000 and
25%--Morgan Stanley International EAFE Index). The index does not reflect the
deduction of expenses associated with a mutual fund, such as investment
management and fund accounting fees. The Fund's performance reflects the
deduction of fees for these value-added services. Past performance is not
indicative of future results. The investment return and NAV will fluctuate, so
that an investor's shares, when redeemed, may be worth more or less than the
original cost.
The Allocated Aggressive Fund is designed for investors who seek long-term
capital appreciation and can accept more investment risk in exchange for higher
potential returns. As of July 31, 1997, the Fund's portfolio allocation was
97.4% in Qualivest equity funds and the balance in cash.* For the year ended
July 31, 1997, the Fund produced a total return of 36.14% (A shares at NAV).**
*The allocation of the Funds is 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.
-18-
<PAGE> 20
<TABLE> QUALIVEST ALLOCATED GROWTH FUND
<CAPTION> VALUE OF A $10,000 INVESTMENT
Measurement Period Portfolio 1
(Fiscal Year Covered) Class A* Class Y Index
<S> <C> <C> <C>
5/1/96
7/31/96
7/31/97
</TABLE> * Reflects 4.00% Sales Charge
The performance of the Qualivest Allocated Growth Fund is measured against a
benchmark of blended indices which represent the market of investments based
on the allocation. (45%--S&P 500 Stock Index, 15%--Lehman Brothers Aggregate
Bond Index, 5%--Lehman Intermediate Government/Corporate Bond Index,
15%--Russell 2000 and 20%--Morgan Stanley International EAFE Index). The index
does not reflect the deduction of expenses associated with a mutual fund, such
as investment management and fund accounting fees. The Fund's performance
reflects the deduction of fees for these value-added services. Past
performance is not indicative of future results. The investment return and NAV
will fluctuate, so that an investor's shares, when redeemed, may be worth more
or less than the original cost.
The Allocated Growth Fund is designed for investors who seek long-term capital
appreciation with some current income and who want greater price stability than
the Allocated Aggressive Fund. As of July 31, 1997, the Fund's portfolio
allocation was 79.4% in Qualivest equity funds, 17.7% in Qualivest bond funds
and the balance in cash.* For the year ended July 31, 1997, the Fund produced a
total return of 32.42% (A shares at NAV).**
*The allocation of the Funds is 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.
-19-
<PAGE> 21
<TABLE> QUALIVEST ALLOCATED BALANCED FUND
<CAPTION> VALUE OF A $10,000 INVESTMENT
Measurement Period Portfolio 1
(Fiscal Year Covered) Class A* Class Y Index
<S> <C> <C> <C>
5/1/96
7/31/96
7/31/97
</TABLE> * Reflects 4.00% Sales Charge
The performance of the Qualivest Allocated Balance Fund is measured against a
benchmark of blended indices which represent the market of investments based
on the allocation. (35%--S&P 500 Stock Index, 25%--Lehman Brothers Aggregate
Bond Index, 15%--Lehman Intermediate Government/Corporate Bond Index,
10%--Russell 2000 and 15%--Morgan Stanley International EAFE Index). The index
does not reflect the deduction of expenses associated with a mutual fund, such
as investment management and fund accounting fees. The Fund's performance
reflects the deduction of fees for these value-added services. Past
performance is not indicative of future results. The investment return and NAV
will fluctuate, so that an investor's shares, when redeemed, may be worth more
or less than the original cost.
The Allocated Balanced Fund is designed for investors who seek the potential for
both capital appreciation and current income and who want greater capital
appreciation potential than the Allocated Conservative Fund. As of July 31,
1997, the Fund's portfolio allocation was 59.4% in Qualivest equity funds, 37.7%
in Qualivest bond funds and the balance in cash.* For the year ended July 31,
1997, the Fund produced a total return of 26.51% (A shares at NAV).**
*The allocation of the Funds is 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.
-20-
<PAGE> 22
<TABLE> QUALIVEST ALLOCATED CONSERVATIVE FUND
<CAPTION> VALUE OF A $10,000 INVESTMENT
Measurement Period Portfolio 1
(Fiscal Year Covered) Class A* Class Y Index
<S> <C> <C> <C>
5/1/96
7/31/96
7/31/97
</TABLE> * Reflects 4.00% Sales Charge
The performance of the Qualivest Allocated Conservative Fund is measured
against a benchmark of blended indices which represent the market of
investments based on the allocation. (20%--S&P 500 Stock Index, 35%--Lehman
Brothers Aggregate Bond Index, 35%--Lehman Intermediate Government/Corporate
Bond Index, 5%--Russell 2000 and 5%--Morgan Stanley International EAFE Index).
The index does not reflect the deduction of expenses associated with a mutual
fund, such as investment management and fund accounting fees. The Fund's
performance reflects the deduction of fees for these value-added services.
Past performance is not indicative of future results. The investment return
and NAV will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
The Allocated Conservative Fund is designed for investors who want a steady
source of investment income with some capital appreciation and who are most
comfortable with limited investment risk. As of July 31, 1997, the Fund's
portfolio allocation was 64.6% in Qualivest bond funds, 33.1% in Qualivest
equity funds and the balance in cash.* For the year ended July 31, 1997, the
Fund produced a total return of 17.47% (A shares at NAV).**
Given the ongoing volatility in the marketplace, we believe that the asset
allocation structure of these funds is a very prudent investing strategy. By
having exposure to a wider variety of investment assets, investors are less
vulnerable to downdrafts in specific markets.
*The allocation of the Funds is 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.
-21-
<PAGE> 23
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Trustees of
Qualivest Funds
We have audited the accompanying statements of assets and liabilities including
the schedules of portfolio investments of Qualivest Funds (the "Funds"),
including Qualivest Money Market Fund, Qualivest U.S. Treasury Money Market
Fund, Qualivest Tax-Free Money Market Fund, Qualivest Intermediate Bond Fund,
Qualivest Diversified Bond Fund, Qualivest Small Companies Value Fund, Qualivest
Large Companies Value Fund, Qualivest Optimized Stock Fund, Qualivest
International Opportunities Fund, Qualivest Allocated Conservative Fund,
Qualivest Allocated Balanced Fund, Qualivest Allocated Growth Fund, and
Qualivest Allocated Aggressive Fund as of July 31, 1997, the related statements
of operations for the year then ended, and the statements of changes in net
assets and the financial highlights for the periods presented. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of July
31, 1997, by correspondence with the Funds' custodians and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Qualivest Funds at
July 31, 1997, the results of their operations, the changes in their net assets
and the financial highlights for the respective stated periods, in conformity
with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Dayton, Ohio
September 12, 1997
-22-
<PAGE> 24
QUALIVEST FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 1997
<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....................................... $437,040,395 $159,629,216 $40,539,227
Repurchase agreements, at amortized cost............................. 139,820,439 -- --
------------ ------------ ------------
Total Investments.................................................... 576,860,834 159,629,216 40,539,227
Interest receivable.................................................. 330,731 1,357,656 291,538
Receivable for investments sold...................................... -- -- 100,000
Prepaid expenses..................................................... 3,891 2,853 4,647
------------ ------------ ------------
Total Assets................................................. 577,195,456 160,989,725 40,935,412
------------ ------------ ------------
LIABILITIES:
Distributions payable................................................ 2,338,596 626,068 101,101
Accrued expenses and other payables:
Investment advisory fees......................................... 117,621 -- --
Administration fees.............................................. 12,026 3,528 877
Distribution and shareholder service fees (Class A).............. 85,509 42,332 11,075
Distribution and shareholder service fees (Class Q).............. -- 5,031 1,089
Accounting fees.................................................. 2,186 853 1,363
Transfer agent fees.............................................. 4,681 4,932 5,903
Legal fees....................................................... 24,166 6,006 1,561
Audit fees....................................................... 25,514 7,207 5,470
Printing fees.................................................... 28,084 6,082 778
Other............................................................ 14,113 6,186 1,218
------------ ------------ ------------
Total Liabilities............................................ 2,652,496 708,225 130,435
------------ ------------ ------------
NET ASSETS:
Capital.............................................................. 574,542,769 160,281,453 40,801,871
Undistributed net investment income.................................. 191 -- 3,954
Accumulated undistributed net realized gains (losses) from investment
transactions....................................................... -- 47 (848)
------------ ------------ ------------
Net Assets................................................... $574,542,960 $160,281,500 $40,804,977
============ ============ ============
Net Assets
Class A.......................................................... $254,792,721 $124,550,003 $31,668,387
Class Y.......................................................... 162,987,018 2,353,760 3,785,572
Class Q.......................................................... 156,763,221 33,377,737 5,351,018
------------ ------------ ------------
Total........................................................ $574,542,960 $160,281,500 $40,804,977
============ ============ ============
Outstanding units of beneficial interest (shares)
Class A.......................................................... 254,794,083 124,549,967 31,667,773
Class Y.......................................................... 162,987,386 2,353,760 3,785,616
Class Q.......................................................... 156,761,300 33,377,726 5,351,118
------------ ------------ ------------
Total........................................................ 574,542,769 160,281,453 40,804,507
============ ============ ============
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.
-23-
<PAGE> 25
QUALIVEST FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 1997
<TABLE>
<CAPTION>
INTERMEDIATE DIVERSIFIED SMALL COMPANIES
BOND FUND BOND FUND VALUE FUND
------------ ------------ ---------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (Cost $178,610,749; $247,731,312; and
$314,856,376, respectively)...................................... $180,309,901 $253,318,687 $ 446,221,833
Repurchase agreements, at amortized cost........................... 7,966,043 3,779,993 25,961,506
------------ ------------ ------------
Total Investments.................................................. 188,275,944 257,098,680 472,183,339
Interest and distributions receivable.............................. 3,815,640 4,031,167 410,001
Receivable for investments sold.................................... 11,455,016 -- 215,954
Receivable for capital shares issued............................... -- -- 25,880
Prepaid expenses................................................... 5,212 4,682 9,289
------------ ------------ ------------
Total Assets............................................... 203,551,812 261,134,529 472,844,463
------------ ------------ ------------
LIABILITIES:
Payable for capital shares redeemed................................ -- 30,713
Payable for investments purchased.................................. 11,810,952 -- --
Accrued expenses and other payables:
Investment advisory fees....................................... 71,918 64,432 310,167
Administration fees............................................ 4,064 5,528 9,991
Distribution and shareholder service fees (Class A)............ 156 91 4,126
Distribution and shareholder service fees (Class C)............ 43 19 1,989
Accounting fees................................................ 972 1,262 1,982
Transfer agent fees............................................ 2,737 4,794 3,897
Legal fees..................................................... 7,067 8,903 16,263
Audit fees..................................................... 7,396 8,964 17,238
Printing fees.................................................. 7,106 10,448 16,870
Other.......................................................... 6,027 8,085 14,520
------------ ------------ ------------
Total Liabilities.......................................... 11,918,438 112,526 427,756
------------ ------------ ------------
NET ASSETS:
Capital............................................................ 188,890,572 254,986,017 307,028,625
Undistributed net investment income................................ 421,851 659,616 57,066
Net unrealized appreciation (depreciation) from investments........ 1,699,152 5,587,375 131,365,457
Accumulated undistributed net realized gains (losses) from
investment transactions.......................................... 621,799 (211,005) 33,965,559
------------ ------------ ------------
Net Assets................................................. $191,633,374 $261,022,003 $ 472,416,707
============ ============ ============
Net Assets
Class A........................................................ $ 732,065 $ 462,908 $ 19,999,142
Class Y........................................................ 190,850,717 260,536,107 449,987,742
Class C........................................................ 50,592 22,988 2,429,823
------------ ------------ ------------
Total...................................................... $191,633,374 $261,022,003 $ 472,416,707
============ ============ ============
Outstanding units of beneficial interest (shares)
Class A........................................................ 72,655 45,567 1,119,981
Class Y........................................................ 18,742,294 25,114,228 25,176,740
Class C........................................................ 5,055 2,368 139,206
------------ ------------ ------------
Total...................................................... 18,820,004 25,162,163 26,435,927
============ ============ ============
Net asset value
Class A--redemption price per share............................ $ 10.08 $ 10.16 $ 17.86
Class Y--offering and redemption price per share............... $ 10.18 $ 10.37 $ 17.87
Class C--offering price per share *............................ $ 10.01 $ 9.71 $ 17.45
============ ============ ============
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)........ $ 10.45 $ 10.53 $ 18.70
============ ============ ============
</TABLE>
- ---------
* Redemption price per share (Class C) varies by length of time shares are held.
See notes to financial statements.
-24-
<PAGE> 26
QUALIVEST FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 1997
<TABLE>
<CAPTION>
INTERNATIONAL
LARGE COMPANIES OPTIMIZED OPPORTUNITIES
VALUE FUND STOCK FUND FUND
--------------- ------------ -------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (Cost $119,006,102; $228,241,843 and $180,040,369,
respectively)........................................................... $ 171,267,157 $350,568,877 $ 212,440,310
Repurchase agreements, at amortized cost................................. 21,425,250 4,282,295 --
------------ ------------ ------------
Total Investments........................................................ 192,692,407 354,851,172 212,440,310
Foreign currency (Cost $569,922)......................................... -- -- 556,968
Interest and distributions receivable.................................... 260,733 402,278 228,223
Receivable for investments sold.......................................... 491,472 -- --
Receivable for capital shares issued..................................... 14,034 48 611
Prepaid expenses......................................................... 836 551 61
------------ ------------ ------------
Total Assets...................................................... 193,459,482 355,254,049 213,226,173
------------ ------------ ------------
LIABILITIES:
Net payable for forward currency contracts purchased..................... -- -- 2,385
Payable for capital shares redeemed...................................... 6,230 18,066 8,547
Payable for investments purchased........................................ -- -- 926,828
Accrued expenses and other payables:
Investment advisory fees.............................................. 94,612 87,247 53,577
Administration fees................................................... 4,058 7,472 4,513
Distribution and shareholder service fees (Class A)................... 1,651 1,088 321
Distribution and shareholder service fees (Class C)................... 957 437 46
Accounting fees....................................................... 970 1,560 1,652
Transfer agent fees................................................... 4,958 2,996 4,643
Legal fees............................................................ 6,204 11,487 7,031
Audit fees............................................................ 6,571 12,058 7,717
Custody fees.......................................................... 4,730 8,725 30,122
Printing fees......................................................... 6,359 11,868 32,269
Other................................................................. 4,695 5,496 3,161
------------ ------------ ------------
Total Liabilities................................................. 141,995 168,500 1,082,812
------------ ------------ ------------
NET ASSETS:
Capital.................................................................. 128,580,128 222,265,921 179,487,492
Undistributed net investment income...................................... 458,324 782,630 705,914
Net unrealized appreciation (depreciation) from investments and
translation of assets and liabilities in foreign currencies............. 52,261,055 122,327,034 32,386,987
Accumulated undistributed net realized gains (losses) from investment
transactions and foreign currency transactions.......................... 12,017,980 9,709,964 (315,497)
Distributions in excess of realized gains................................ -- -- (121,535)
------------ ------------ ------------
Net Assets........................................................ $ 193,317,487 $355,085,549 $ 212,143,361
============ ============ ============
Net Assets
Class A............................................................... $ 8,103,945 $ 5,561,258 $ 1,577,227
Class Y............................................................... 184,035,032 348,965,534 210,538,079
Class C............................................................... 1,178,510 558,757 28,055
------------ ------------ ------------
Total............................................................. $ 193,317,487 $355,085,549 $ 212,143,361
============ ============ ============
Outstanding units of beneficial interest (shares)
Class A............................................................... 508,748 322,985 128,052
Class Y............................................................... 11,485,906 20,221,450 17,026,291
Class C............................................................... 75,272 32,622 2,285
------------ ------------ ------------
Total............................................................. 12,069,926 20,577,057 17,156,628
============ ============ ============
Net asset value
Class A--redemption price per share................................... $ 15.93 $ 17.22 $ 12.32
Class Y--offering and redemption price per share...................... $ 16.02 $ 17.26 $ 12.37
Class C--offering price per share *................................... $ 15.66 $ 17.13 $ 12.28
============ ============ ============
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)..................... $ 16.68 $ 18.03 $ 12.90
============ ============ ============
</TABLE>
- ---------
* Redemption price per share (Class C) varies by length of time shares are held.
See notes to financial statements.
-25-
<PAGE> 27
QUALIVEST FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 1997
<TABLE>
<CAPTION>
ALLOCATED ALLOCATED ALLOCATED ALLOCATED
CONSERVATIVE FUND BALANCED FUND GROWTH FUND AGGRESSIVE FUND
----------------- ------------- ----------- ---------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (Cost $11,637,761;
$118,926,916; $24,760,547 and $27,878,753,
respectively)................................. $12,542,242 $135,187,521 $28,564,798 $32,931,848
----------- ------------ ----------- -----------
Total Investments............................... 12,542,242 135,187,521 28,564,798 32,931,848
Distributions receivable........................ 1,436 14,030 3,426 4,158
Receivable for capital shares issued............ 19,058 36,120 32,703 3,600
Prepaid expenses................................ 888 6,446 1,305 862
----------- ------------ ----------- -----------
Total Assets............................ 12,563,624 135,244,117 28,602,232 32,940,468
----------- ------------ ----------- -----------
LIABILITIES:
Accrued expenses and other payables:
Investment advisory fees.................... 523 5,601 1,169 1,342
Administration fees......................... 144 1,541 325 374
Distribution and shareholder service fees
(Class A)................................. 639 2,228 2,997 1,860
Accounting fees............................. 20 220 46 54
Legal fees.................................. 402 2,841 783 839
Audit fees.................................. 4,532 5,029 4,966 4,966
Printing fees............................... 773 2,816 1,254 1,346
Other....................................... 2,679 3,121 2,066 2,373
----------- ------------ ----------- -----------
Total Liabilities....................... 9,712 23,397 13,606 13,154
----------- ------------ ----------- -----------
NET ASSETS:
Capital......................................... 11,228,699 116,371,490 23,798,107 27,117,302
Undistributed net investment income............. 79 633 146 290
Net unrealized appreciation (depreciation) from
investments................................... 904,481 16,260,605 3,804,251 5,053,095
Accumulated undistributed net realized gains
(losses) from investment transactions......... 420,653 2,587,992 986,122 756,627
----------- ------------ ----------- -----------
Net Assets.............................. $12,553,912 $135,220,720 $28,588,626 $32,927,314
=========== ============ =========== ===========
Net Assets
Class A..................................... $ 3,194,692 $ 11,201,518 $14,921,048 $ 9,264,809
Class Y..................................... 9,359,220 124,019,202 13,667,578 23,662,505
----------- ------------ ----------- -----------
Total................................... $12,553,912 $135,220,720 $28,588,626 $32,927,314
=========== ============ =========== ===========
Outstanding units of beneficial interest
(shares)
Class A..................................... 284,769 935,269 1,175,472 710,514
Class Y..................................... 833,587 10,449,649 1,089,390 1,820,603
----------- ------------ ----------- -----------
Total................................... 1,118,356 11,384,918 2,264,862 2,531,117
=========== ============ =========== ===========
Net asset value
Class A--redemption price per share......... $ 11.22 $ 11.98 $ 12.69 $ 13.04
Class Y--offering and redemption price per
share..................................... $ 11.23 $ 11.87 $ 12.55 $ 13.00
=========== ============ =========== ===========
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)............. $ 11.69 $ 12.48 $ 13.22 $ 13.58
=========== ============ =========== ===========
</TABLE>
See notes to financial statements.
-26-
<PAGE> 28
QUALIVEST FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31,1997
<TABLE>
<CAPTION>
U.S.
MONEY TREASURY TAX-FREE
MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
----------- ------------ ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income....................................................... $30,162,844 $7,746,473 $1,386,646
----------- ---------- ----------
Total Income...................................................... 30,162,844 7,746,473 1,386,646
----------- ---------- ----------
EXPENSES:
Investment advisory fees.............................................. 1,918,544 519,379 134,410
Administration fees................................................... 712,160 192,781 49,877
Distribution and shareholder service fees (Class A)................... 999,684 453,349 128,390
Distribution and shareholder service fees (Class Q)................... 405,532 82,671 10,308
Custodian fees........................................................ 164,338 44,486 11,510
Accounting fees....................................................... 152,269 65,091 61,712
Transfer agent fees................................................... 49,063 48,430 48,429
Legal fees............................................................ 41,870 9,833 394
Audit fees............................................................ 30,036 8,018 8,472
Organization costs.................................................... -- 1,100 --
Trustees' fees and expenses........................................... 24,945 6,711 1,739
Registration and filing fees.......................................... 42,673 15,987 828
Printing costs........................................................ 59,321 10,510 1,432
Other................................................................. 13,140 4,149 1,466
----------- ---------- ----------
Total expenses before waivers..................................... 4,613,575 1,462,495 458,967
Less waivers...................................................... (954,527) (535,967) (134,410)
----------- ---------- ----------
Net Expenses...................................................... 3,659,048 926,528 324,557
----------- ---------- ----------
Net Investment Income................................................. 26,503,796 6,819,945 1,062,089
----------- ---------- ----------
REALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment transactions.............. -- 47 (848)
----------- ---------- ----------
Net realized gains (losses) from investment transactions.............. -- 47 (848)
----------- ---------- ----------
Change in net assets resulting from operations........................ $26,503,796 $6,819,992 $1,061,241
=========== ========== ==========
</TABLE>
See notes to financial statements.
-27-
<PAGE> 29
QUALIVEST FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 1997
<TABLE>
<CAPTION>
INTERMEDIATE DIVERSIFIED SMALL COMPANIES
BOND FUND BOND FUND VALUE FUND
------------ ----------- ---------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income.......................................................... $11,291,510 $14,444,961 $ 1,698,272
Dividend income.......................................................... -- -- 3,341,553
Foreign tax withholding.................................................. -- -- (12,994)
----------- ----------- -----------
Total Income......................................................... 11,291,510 14,444,961 5,026,831
----------- ----------- -----------
EXPENSES:
Investment advisory fees................................................. 1,053,203 1,340,154 3,063,116
Administration fees...................................................... 227,926 289,885 497,752
Distribution and shareholder service fees (Class A)...................... 1,758 1,021 35,500
Distribution and shareholder service fees (Class C)...................... 962 232 16,883
Custodian fees........................................................... 52,595 66,895 114,861
Accounting fees.......................................................... 81,186 95,844 129,710
Transfer agent fees...................................................... 50,280 51,010 108,835
Legal fees............................................................... 14,159 15,614 38,295
Audit fees............................................................... 8,824 15,205 22,740
Organization costs....................................................... -- 1,940 --
Trustees' fees and expenses.............................................. 8,234 9,736 17,065
Registration and filing fees............................................. 8,577 32,159 41,737
Printing costs........................................................... 8,963 13,988 25,763
Other.................................................................... 5,361 4,927 8,713
----------- ----------- -----------
Total expenses before waivers........................................ 1,522,028 1,938,610 4,120,970
Less waivers......................................................... (264,221) (671,188) --
----------- ----------- -----------
Net Expenses......................................................... 1,257,807 1,267,422 4,120,970
Net Investment Income.................................................... 10,033,703 13,177,539 905,861
----------- ----------- -----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment transactions................. 629,898 (234,228) 40,604,609
Net change in unrealized appreciation (depreciation) from investments.... 2,813,042 9,406,314 94,682,018
----------- ----------- -----------
Net realized/unrealized gains from investments........................... 3,442,940 9,172,086 135,286,627
----------- ----------- -----------
Change in net assets resulting from operations........................... $13,476,643 $22,349,625 $ 136,192,488
=========== =========== ===========
</TABLE>
See notes to financial statements.
-28-
<PAGE> 30
QUALIVEST FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31,1997
<TABLE>
<CAPTION>
INTERNATIONAL
LARGE COMPANIES OPTIMIZED OPPORTUNITIES
VALUE FUND STOCK FUND FUND
--------------- ------------ -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income....................................................... $ 742,491 $ 142,120 $ --
Dividend income....................................................... 2,846,527 5,362,281 3,783,924
Foreign tax withholding............................................... (2,252) (13,172) (546,378)
----------- ----------- -----------
Total Income...................................................... 3,586,766 5,491,229 3,237,546
----------- ----------- -----------
EXPENSES:
Investment advisory fees.............................................. 1,154,566 1,376,542 1,036,098
Administration fees................................................... 200,290 357,208 224,109
Distribution and shareholder service fees (Class A)................... 15,912 6,671 4,192
Distribution and shareholder service fees (Class C)................... 8,634 2,226 221
Custodian fees........................................................ 46,216 82,432 130,299
Accounting fees....................................................... 69,728 116,771 187,647
Transfer agent fees................................................... 84,497 62,853 58,516
Legal fees............................................................ 13,466 20,717 14,945
Audit fees............................................................ 7,974 12,689 9,221
Organization costs.................................................... -- 1,940 2,056
Trustees' fees and expenses........................................... 6,453 11,941 7,568
Registration and filing fees.......................................... 18,642 29,209 38,518
Printing costs........................................................ 9,614 17,265 60,148
Other................................................................. 3,651 6,570 4,149
----------- ----------- -----------
Total expenses before waivers..................................... 1,639,643 2,105,034 1,777,687
Less waivers...................................................... (232,689) (552,207) (518,920)
----------- ----------- -----------
Net Expenses...................................................... 1,406,954 1,552,827 1,258,767
Net Investment Income................................................. 2,179,812 3,938,402 1,978,779
----------- ----------- -----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment transactions.............. 14,573,967 17,302,887 (315,497)
Net realized gains (losses) from foreign currency transactions........ -- -- (96,744)
Net change in unrealized appreciation (depreciation) from
investments......................................................... 40,792,153 99,082,503 28,680,543
Net change in unrealized appreciation (depreciation) from foreign
currency transactions............................................... -- -- (4,551)
----------- ----------- -----------
Net realized/unrealized gains from investments........................ 55,366,120 116,385,390 28,263,751
----------- ----------- -----------
Change in net assets resulting from operations........................ $57,545,932 $120,323,792 $30,242,530
=========== =========== ===========
</TABLE>
See notes to financial statements.
-29-
<PAGE> 31
QUALIVEST FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31,1997
<TABLE>
<CAPTION>
ALLOCATED ALLOCATED ALLOCATED ALLOCATED
CONSERVATIVE BALANCED GROWTH AGGRESSIVE
FUND FUND FUND FUND
----------------- ------------- ----------- ---------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Distribution income............................. $ 436,656 $ 2,522,218 $ 366,535 $ 186,328
---------- ----------- ----------- -----------
EXPENSES:
Investment advisory fees........................ 5,223 41,898 9,418 9,304
Administration fees............................. 7,313 58,668 13,185 13,026
Distribution and shareholder service fees (Class
A)............................................ 3,302 11,497 14,950 8,880
Custodian fees.................................. 522 4,190 942 930
Accounting fees................................. 1,045 8,382 1,884 1,861
Transfer agent fees............................. 2,089 32,963 3,766 3,725
Legal fees...................................... 548 5,365 1,093 1,064
Audit fees...................................... 14,156 9,396 11,586 11,586
Trustees' fees and expenses..................... 249 3,147 431 431
Registration and filing fees.................... 7,880 21,284 9,728 9,057
Printing costs.................................. 854 7,508 1,663 1,557
Other........................................... 184 865 165 163
---------- ----------- ----------- -----------
Total Expenses.............................. 43,365 205,163 68,811 61,584
---------- ----------- ----------- -----------
Net Investment Income........................... 393,291 2,317,055 297,724 124,744
---------- ----------- ----------- -----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains (losses) from investment
transactions.................................. 424,154 2,600,142 998,451 761,566
Net change in unrealized appreciation
(depreciation) from investments............... 989,891 17,380,659 4,158,231 5,342,590
---------- ----------- ----------- -----------
Net realized/unrealized gains from
investments................................... 1,414,045 19,980,801 5,156,682 6,104,156
---------- ----------- ----------- -----------
Change in net assets resulting from
operations.................................... $ 1,807,336 $22,297,856 $5,454,406 $ 6,228,900
========== =========== =========== ===========
</TABLE>
See notes to financial statements.
-30-
<PAGE> 32
QUALIVEST FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
U.S. TREASURY TAX-FREE
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
------------------------------- --------------------------- -------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
1997 1996 1997 1996 1997 1996
-------------- -------------- ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income............ $ 26,503,796 $ 19,376,010 $ 6,819,945 $ 5,282,724 $ 1,062,089 $ 1,042,039
Net realized gains (losses) from
investment transactions........ -- -- 47 -- (848) 1,142
-------------- -------------- ------------ ------------ ----------- -----------
Change in net assets resulting from
operations....................... 26,503,796 19,376,010 6,819,992 5,282,724 1,061,241 1,043,181
-------------- -------------- ------------ ------------ ----------- -----------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income....... (11,547,707) (10,656,517) (5,155,690) (3,929,231) (876,147) (968,355)
DISTRIBUTIONS TO CLASS Y SHAREHOLDERS:
From net investment income....... (6,823,607) (4,081,900) (94,867) (3,788) (67,352) (10,400)
DISTRIBUTIONS TO CLASS Q SHAREHOLDERS:
From net investment income....... (8,132,482) (4,637,593) (1,569,388) (1,349,705) (118,590) (63,284)
-------------- -------------- ------------ ------------ ----------- -----------
Change in net assets from
shareholder distributions........ (26,503,796) (19,376,010) (6,819,945) (5,282,724) (1,062,089) (1,042,039)
-------------- -------------- ------------ ------------ ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares issued...... 2,803,908,254 1,928,774,210 674,648,838 342,623,902 94,712,758 95,124,837
Dividends reinvested............. 19,448,580 15,063,971 6,606,577 5,151,868 966,079 1,052,542
Cost of shares redeemed.......... (2,695,458,389) (1,835,702,517) (644,278,348) (307,567,073) (88,911,156) (96,972,871)
-------------- -------------- ------------ ------------ ----------- -----------
Change in net assets from share
transactions..................... 127,898,445 108,135,664 36,977,067 40,208,697 6,767,681 (795,492)
-------------- -------------- ------------ ------------ ----------- -----------
Change in net assets............... 127,898,445 108,135,664 36,977,114 40,208,697 6,766,833 (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.................... $ 574,542,960 $ 446,644,515 $160,281,500 $123,304,386 $40,804,977 $34,038,144
============== ============== ============ ============ =========== ===========
SHARE TRANSACTIONS:
Issued........................... 2,803,908,254 1,928,774,210 674,648,838 342,623,902 94,712,758 95,124,837
Reinvested....................... 19,448,580 15,063,971 6,606,577 5,151,868 966,079 1,052,542
Redeemed......................... (2,695,458,389) (1,835,702,517) (644,278,348) (307,567,073) (88,911,156) (96,972,871)
-------------- -------------- ------------ ------------ ----------- -----------
Change in shares................... 127,898,445 108,135,664 36,977,067 40,208,697 6,767,681 (795,492)
============== ============== ============ ============ =========== ===========
</TABLE>
See notes to financial statements.
-31-
<PAGE> 33
QUALIVEST FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SMALL COMPANIES
INTERMEDIATE BOND FUND DIVERSIFIED BOND FUND VALUE FUND
--------------------------- --------------------------- ---------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
1997 1996 1997 1996 1997 1996
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income............. $ 10,033,703 $ 8,337,086 $ 13,177,539 $ 7,902,356 $ 905,861 $ 1,062,914
Net realized gains (losses) from
investment transactions......... 629,898 952,023 (234,228) 1,877,945 40,604,609 34,451,881
Net change in unrealized
appreciation (depreciation) from
investments..................... 2,813,042 (3,464,045) 9,406,314 (5,431,677) 94,682,018 (2,468,172)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets resulting from
operations........................ 13,476,643 5,825,064 22,349,625 4,348,624 136,192,488 33,046,623
------------ ------------ ------------ ------------ ------------ ------------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment income........ (39,125) (28,845) (23,659) (6,473) (12,967) (12,944)
In excess of net investment
income.......................... -- -- -- -- -- (348)
From net realized gains from
investment transactions......... (1,769) (120) (2,977) (1,356) (1,213,321) (266,703)
DISTRIBUTIONS TO CLASS Y
SHAREHOLDERS:
From net investment income........ (9,956,429) (8,226,339) (12,938,158) (7,654,293) (1,010,436) (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........ (4,737) (5,766) (1,108) (73) -- (317)
From net realized gains from
investment transactions......... (280) (34) (155) -- (133,253) (52,906)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets from
shareholder distributions......... (10,436,715) (8,294,836) (14,369,965) (9,386,004) (36,030,852) (19,289,627)
------------ ------------ ------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued....... 86,194,503 64,422,296 79,073,119 91,547,557 225,979,984 126,977,542
Dividends reinvested.............. 8,591,681 8,041,886 10,180,631 9,032,688 33,739,004 19,203,383
Cost of shares redeemed........... (65,062,606) (53,037,282) (19,788,990) (11,311,827) (195,503,696) (63,092,760)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets from share
transactions...................... 29,723,578 19,426,900 69,464,760 89,268,418 64,215,292 83,088,165
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets................ 32,763,506 16,957,128 77,444,420 84,231,038 164,376,928 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..................... $191,633,374 $158,869,868 $261,022,003 $183,577,583 $472,416,707 $308,039,779
============ ============ ============ ============ ============ ============
SHARE TRANSACTIONS:
Issued............................ 8,576,279 6,326,763 7,837,535 8,900,490 14,681,354 9,165,038
Reinvested........................ 854,894 791,062 1,006,177 874,967 2,341,484 1,494,582
Redeemed.......................... (6,483,337) (5,220,893) (1,965,478) (1,108,034) (12,654,648) (4,525,438)
------------ ------------ ------------ ------------ ------------ ------------
Change in shares.................... 2,947,836 1,896,932 6,878,234 8,667,423 4,368,190 6,134,182
============ ============ ============ ============ ============ ============
</TABLE>
See notes to financial statements.
-32-
<PAGE> 34
QUALIVEST FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LARGE COMPANIES INTERNATIONAL
VALUE FUND OPTIMIZED STOCK FUND OPPORTUNITIES FUND
--------------------------- --------------------------- ---------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
1997 1996 1997 1996 1997 1996
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income............. $ 2,179,812 $ 1,880,892 $ 3,938,402 $ 3,361,625 $ 1,978,779 $ 1,276,687
Net realized gains (losses) from
investment transactions......... 14,573,967 8,958,325 17,302,887 8,462,270 (315,497) 315,363
Net realized gains (losses) from
foreign currency transactions... -- -- -- -- (96,744) (231,025)
Net change in unrealized
appreciation (depreciation) from
investments..................... 40,792,153 (2,960,072) 99,082,503 11,602,223 28,680,543 1,148,968
Net change in unrealized
appreciation (depreciation) from
foreign currency................ -- -- -- -- (4,551) 3,418
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets resulting from
operations........................ 57,545,932 7,879,145 120,323,792 23,426,118 30,242,530 2,513,411
------------ ------------ ------------ ------------ ------------ ------------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment income........ (73,807) (35,005) (29,251) (4,963) (14,484) (8,763)
From net realized gains from
investment transactions......... (340,861) (129,974) (101,679) (4,341) (3,510) (38)
In excess of realized gains....... (1,360)
DISTRIBUTIONS TO CLASS Y
SHAREHOLDERS:
From net investment income........ (2,061,411) (1,756,110) (3,857,477) (3,150,517) (1,705,121) (542,120)
From net realized gains from
investment transactions......... (8,239,081) (7,767,356) (13,829,821) (2,699,756) (310,180) (1,605)
In excess of realized gains....... (120,161)
DISTRIBUTIONS TO CLASS C
SHAREHOLDERS:
From net investment income........ (4,250) (5,161) (1,267) (660) (42) (20)
From net realized gains from
investment transactions......... (43,128) (27,868) (7,082) (860) (36) --
In excess of realized gains....... (14)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets from
shareholder distributions......... (10,762,538) (9,721,474) (17,826,577) (5,861,097) (2,154,908) (552,546)
------------ ------------ ------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued....... 77,223,622 51,611,609 71,226,649 70,019,637 80,733,557 93,375,001
Dividends reinvested.............. 7,929,634 9,546,835 16,142,331 5,767,679 1,542,938 468,557
Cost of shares redeemed........... (56,841,337) (40,548,298) (55,103,534) (21,866,911) (42,703,298) (11,414,929)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets from share
transactions...................... 28,311,919 20,610,146 32,265,446 53,920,405 39,573,197 82,428,629
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets................ 75,095,313 18,767,817 134,762,661 71,485,426 67,660,819 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..................... $193,317,487 $118,222,174 $355,085,549 $220,322,888 $212,143,361 $144,482,542
============ ============ ============ ============ ============ ============
SHARE TRANSACTIONS:
Issued............................ 5,845,707 4,166,612 5,022,100 5,892,190 7,247,757 8,816,810
Reinvested........................ 620,748 839,075 1,217,458 492,903 138,587 44,496
Redeemed.......................... (4,265,832) (3,265,999) (3,837,665) (1,803,663) (3,751,975) (1,073,107)
------------ ------------ ------------ ------------ ------------ ------------
Change in shares.................... 2,200,623 1,739,688 2,401,893 4,581,430 3,634,369 7,788,199
============ ============ ============ ============ ============ ============
</TABLE>
See notes to financial statements.
-33-
<PAGE> 35
QUALIVEST FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Allocated Conservative Fund Allocated Balanced Fund
------------------------------ -------------------------------
YEAR FOR THE PERIOD Year For the period
ENDED FROM MAY 1, 1996 ended from May 1, 1996
JULY 31, THROUGH July 31, through
1997 JULY 31, 1996(a) 1997 July 31, 1996(a)
----------- ---------------- ------------ ----------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income................................. $ 393,291 $ 58,647 $ 2,317,055 $ 217,386
Net realized gains (losses) from investment
transactions........................................ 424,154 (47) 2,600,142 6,167
Net change in unrealized appreciation (depreciation)
from investments.................................... 989,891 (85,410) 17,380,659 (1,120,054)
----------- ---------- ------------ -----------
Change in net assets resulting from operations.......... 1,807,336 (26,810) 22,297,856 (896,501)
----------- ---------- ------------ -----------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income............................ (51,129) -- (120,094) --
From net realized gains on investments................ (271) -- (791) --
DISTRIBUTIONS TO CLASS Y SHAREHOLDERS:
From net investment income............................ (382,023) (18,707) (2,326,222) (87,492)
From net realized gains on investments................ (3,183) -- (17,526) --
----------- ---------- ------------ -----------
Change in net assets from shareholder distributions..... (436,606) (18,707) (2,464,633) (87,492)
----------- ---------- ------------ -----------
CAPITAL TRANSACTIONS:
Proceeds from shares issued........................... 11,382,136 7,728,026 101,594,515 39,938,939
Dividends reinvested.................................. 222,297 -- 2,258,849 77,746
Cost of shares redeemed............................... (7,993,846) (109,914) (26,748,503) (750,056)
----------- ---------- ------------ -----------
Change in net assets from share transactions............ 3,610,587 7,618,112 77,104,861 39,266,629
----------- ---------- ------------ -----------
Change in net assets.................................... 4,981,317 7,572,595 96,938,084 38,282,636
NET ASSETS:
Beginning of period................................... 7,572,595 -- 38,282,636 --
----------- ---------- ------------ -----------
End of period......................................... $12,553,912 $7,572,595 $135,220,720 $ 38,282,636
=========== ========== ============ ===========
SHARE TRANSACTIONS:
Issued................................................ 1,095,491 771,456 9,752,330 3,995,654
Reinvested............................................ 20,941 -- 210,599 7,698
Redeemed.............................................. (758,434) (11,098) (2,504,903) (76,460)
----------- ---------- ------------ -----------
Change in shares........................................ 357,998 760,358 7,458,026 3,926,892
=========== ========== ============ ===========
</TABLE>
- ---------
(a) Period from commencement of operations.
See notes to financial statements.
-34-
<PAGE> 36
QUALIVEST FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Allocated Growth Fund Allocated Aggressive Fund
------------------------------ ------------------------------
YEAR FOR THE PERIOD Year For the period
ENDED FROM MAY 1, 1996 ended from May 1, 1996
JULY 31, THROUGH July 31, through
1997 JULY 31, 1996(a) 1997 July 31, 1996(a)
----------- ---------------- ----------- ----------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income.................................. $ 297,724 $ 30,292 $ 124,744 $ 10,360
Net realized gains (losses) from investment
transactions......................................... 998,451 (1,108) 761,566 (4,939)
Net change in unrealized appreciation (depreciation)
from investments..................................... 4,158,231 (353,980) 5,342,590 (289,495)
---------- ---------- ---------- ----------
Change in net assets resulting from operations........... 5,454,406 (324,796) 6,228,900 (284,074)
---------- ---------- ---------- ----------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income............................. (85,103) -- (15,701) (4)
From net realized gains on investments................. (2,509) -- -- --
DISTRIBUTIONS TO CLASS Y SHAREHOLDERS:
From net investment income............................. (225,994) (16,773) (108,753) (10,356)
From net realized gains on investments................. (8,712) -- -- (1,452)
---------- ---------- ---------- ----------
Change in net assets from shareholder distributions...... (322,318) (16,773) (124,454) (11,812)
---------- ---------- ---------- ----------
CAPITAL TRANSACTIONS:
Proceeds from shares issued............................ 21,158,369 11,303,551 24,944,581 9,805,661
Dividends reinvested................................... 227,604 1,099 117,570 10,396
Cost of shares redeemed................................ (8,730,057) (162,459) (6,447,707) (1,311,747)
---------- ---------- ---------- ----------
Change in net assets from share transactions............. 12,655,916 11,142,191 18,614,444 8,504,310
---------- ---------- ---------- ----------
Change in net assets..................................... 17,788,004 10,800,622 24,718,890 8,208,424
NET ASSETS:
Beginning of period.................................... 10,800,622 -- 8,208,424 --
---------- ---------- ---------- ----------
End of period.......................................... $28,588,626 $ 10,800,622 $32,927,314 $ 8,208,424
========== ========== ========== ==========
SHARE TRANSACTIONS:
Issued................................................. 1,918,554 1,128,552 2,250,469 985,152
Reinvested............................................. 19,998 107 10,216 1,012
Redeemed............................................... (785,381) (16,968) (584,252) (131,480)
---------- ---------- ---------- ----------
Change in shares......................................... 1,153,171 1,111,691 1,676,433 854,684
========== ========== ========== ==========
</TABLE>
- ---------
(a) Period from commencement of operations.
See notes to financial statements.
-35-
<PAGE> 37
QUALIVEST FUNDS
MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ------------ -------------------------- ------------
<C> <S> <C>
COMMERCIAL PAPER (65.5%):
Asset Backed (4.0%):
$ 6,000,000 Enterprise Funding Corp.,
5.53%, 9/30/97.......... $ 5,944,700
5,000,000 Enterprise Funding Corp.,
5.51%, 10/2/97.......... 4,952,553
6,000,000 Enterprise Funding Corp.,
5.51%, 10/22/97......... 5,924,697
6,000,000 Enterprise Funding Corp.,
5.50%, 10/31/97......... 5,916,583
------------
22,738,533
------------
Automotive (5.9%):
5,000,000 Ford Motor Credit Co.,
5.27%, 8/13/97.......... 4,991,217
6,000,000 Ford Motor Credit Co.,
5.58%, 8/27/97.......... 5,975,820
6,000,000 Ford Motor Credit Co.,
5.56%, 9/29/97.......... 5,945,327
6,000,000 Ford Motor Credit Co.,
5.63%, 10/1/97.......... 5,943,677
6,000,000 Ford Motor Credit Co.,
5.50%, 10/14/97......... 5,932,167
5,000,000 Toyota Motor Credit Corp.,
5.55%, 8/15/97.......... 4,989,208
------------
33,777,416
------------
Banking (2.1%):
6,000,000 Commed Fuel,
5.49%, 10/29/97......... 5,917,725
6,000,000 Republic New York Corp.,
5.54%, 9/3/97........... 5,969,530
------------
11,887,255
------------
Beverages (1.0%):
6,000,000 Anheuser-Busch Cos. Inc.,
5.55%, 8/29/97.......... 5,974,100
------------
Building Products (2.3%):
5,000,000 Guardian Industries Corp.,
5.61%, 8/8/97........... 4,994,546
3,500,000 Guardian Industries Corp.,
5.58%, 8/11/97.......... 3,494,575
5,000,000 Guardian Industries,
5.55%, 9/26/97.......... 4,956,833
------------
13,445,954
------------
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
------------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Chemicals (2.8%):
$ 5,000,000 Dupont Nemour,
5.67%, 9/22/97.......... $ 4,959,050
5,000,000 Monsanto Co.,
5.63%, 8/4/97........... 4,997,654
6,000,000 Monsanto Co.,
5.60%, 9/10/97.......... 5,962,667
------------
15,919,371
------------
Electric Utility (2.1%):
6,000,000 General Electric,
5.58%, 9/9/97........... 5,963,730
6,000,000 Portland General Electric
Co.,
5.60%, 8/21/97.......... 5,981,333
------------
11,945,063
------------
Financial Services (22.3%):
6,000,000 American Express,
5.54%, 9/11/97.......... 5,962,143
6,000,000 American Express,
5.54%, 9/23/97.......... 5,951,063
6,000,000 American Express,
5.52%, 10/7/97.......... 5,938,360
6,000,000 American Express,
5.51%, 10/14/97......... 5,932,043
6,000,000 American General Finance,
5.58%, 8/25/97.......... 5,977,680
6,000,000 American General Finance,
5.56%, 9/18/97.......... 5,955,520
5,000,000 American General Finance,
5.52%, 10/6/97.......... 4,949,400
6,000,000 Associates Corp. of N.A.,
5.61%, 8/12/97.......... 5,989,715
5,000,000 Associates Corp. of N.A.,
5.55%, 9/19/97.......... 4,962,229
6,000,000 Associates Corp. of N.A.,
5.58%, 9/25/97.......... 5,948,850
6,000,000 Cargill Financial Services
Corp.,
5.49%, 10/8/97.......... 5,937,780
6,000,000 Cargill Financial Services
Corp.,
5.49%, 10/15/97......... 5,931,375
6,000,000 Cargill Financial Services
Corp.,
5.49%, 10/27/97......... 5,920,395
7,000,000 CIT Group Holdings, Inc.,
5.63%, 8/1/97........... 7,000,000
</TABLE>
Continued
-36-
<PAGE> 38
QUALIVEST FUNDS
MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
------------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Financial Services, Continued:
$ 6,000,000 CIT Group Holdings, Inc.,
5.60%, 8/18/97.......... $ 5,984,133
6,000,000 CIT Group Holdings, Inc.,
5.56%, 9/16/97.......... 5,957,373
5,000,000 General Electric Capital
Corp.,
5.62%, 8/7/97........... 4,995,317
6,000,000 National Rural Utilities
Corp.,
5.55%, 8/20/97.......... 5,982,425
6,000,000 National Rural Utilities
Corp.,
5.54%, 9/12/97.......... 5,961,220
6,000,000 Norwest Financial,
5.55%, 9/24/97.......... 5,950,050
6,000,000 Norwest Financial,
5.55%, 10/3/97.......... 5,941,725
5,000,000 Safeco Credit Corp.,
0.00%*, 8/15/97**....... 4,989,111
------------
128,117,907
------------
Food Products (0.9%):
5,000,000 Campbell Soup Co.,
5.25%, 9/15/97.......... 4,967,188
------------
Insurance (5.7%):
5,000,000 John Hancock Capital
Corp.,
5.59%, 8/5/97........... 4,996,894
5,000,000 Marsh & McLennan
Companies,
5.70%, 5/1/97........... 4,972,292
6,000,000 SAFECO Credit Co.,
5.58%, 9/4/97........... 5,968,380
6,000,000 SAFECO Credit Co.,
5.54%, 9/19/97.......... 5,954,757
5,000,000 USAA Capital Corp.,
5.25%, 8/19/97.......... 4,986,875
6,000,000 USAA Capital Corp.,
5.55%, 9/11/97.......... 5,962,075
------------
32,841,273
------------
Leasing (1.0%):
6,000,000 International Lease
Financial Corp.,
5.63%, 8/20/97.......... 5,982,172
------------
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
------------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Miscellaneous (1.9%):
$ 5,000,000 University of California
Regents,
5.67%, 8/28/97.......... $ 4,978,738
6,000,000 University of California
Regents,
5.60%, 9/9/97........... 5,963,600
------------
10,942,338
------------
Office Equipment & Services (1.7%):
5,000,000 Pitney Bowes,
5.60%, 8/26/97.......... 4,980,556
5,000,000 Pitney Bowes,
5.67%, 9/17/97.......... 4,962,988
------------
9,943,544
------------
Pharmaceuticals (0.9%):
5,000,000 Schering Corp.,
5.64%, 9/2/97........... 4,974,933
------------
Printing & Publishing (3.6%):
5,000,000 McGraw Hill, Inc.,
0.00%*, 8/11/97**....... 4,992,472
5,000,000 McGraw Hill, Inc,
5.41%, 8/6/97........... 4,996,243
6,000,000 McGraw Hill Inc.,
5.56%, 8/29/97.......... 5,974,053
5,000,000 McGraw Hill, Inc,
5.58%, 9/2/97........... 4,975,200
------------
20,937,968
------------
Security Brokers & Dealers (4.5%):
6,000,000 Merrill Lynch & Co. Inc,
5.65%, 8/22/97.......... 5,980,225
5,000,000 Merrill Lynch & Co., Inc.,
5.68%, 9/4/97........... 4,973,178
5,000,000 Merrill Lynch & Co., Inc.,
5.52%, 10/16/97......... 4,941,733
10,000,000 Merrill Lynch & Co., Inc.,
5.50%, 10/24/97......... 9,871,667
------------
25,766,803
------------
</TABLE>
Continued
-37-
<PAGE> 39
QUALIVEST FUNDS
MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ------------ -------------------------- ------------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Telecommunications (2.8%):
$ 6,000,000 American Information
Technology Corp.,
5.47%, 10/28/97......... $ 5,919,773
5,000,000 Ameritech,
5.55%, 9/8/97........... 4,970,708
5,000,000 AT&T Corp.,
5.37%, 8/14/97.......... 4,990,304
------------
15,880,785
------------
Total Commercial Paper 376,042,603
------------
MASTER DEMAND NOTES (5.2%):
Financial Services
10,000,000 General Electric Capital
Corp.,
5.75%*, 8/4/97**........ 10,000,000
20,000,000 Paccar Leasing,
5.65%*, 8/19/97**....... 20,000,000
------------
Total Master Demand Notes 30,000,000
------------
FUNDING AGREEMENTS (5.4%):
Insurance
5,000,000 AIG Funding Agreement,
0.00%*, 8/4/97**........ 4,997,792
6,000,000 Commonwealth Life
Insurance Funding
Agreement,
5.79%*, 8/1/97**........ 6,000,000
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ------------ -------------------------- ------------
<C> <S> <C>
FUNDING AGREEMENTS, CONTINUED:
Insurance, Continued:
$ 10,000,000 General American Life
Insurance Co., 5.89%*,
8/1/97**................ $ 10,000,000
10,000,000 Sun Life Insurance Co. of
America Funding
Agreement,
5.79%*, open**.......... 10,000,000
------------
Total Funding Agreements 30,997,792
------------
REPURCHASE AGREEMENTS (24.3%):
139,820,439 Merrill Lynch, 5.78%*,
8/1/97 (Collateralized
by 139,820,439 U.S.
Treasury Strip's,
8/15/97-5/15/98, market
value-- $142,617,873)... 139,820,439
------------
Total Repurchase Agreements 139,820,439
------------
Total (Cost--$576,860,834)(a) $576,860,834
===========
</TABLE>
- ---------
Percentages indicated are based on net assets of $574,542,960
(a) Cost for federal income tax and financial reporting purposes are the same.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon bank prime rates or an index of
market interest rates. The rate reflected on the Schedule of Portfolio
Investments is the rate in effect at July 31, 1997.
** Put and demand features exist allowing the Fund to require the repurchase of
the instrument within variable time periods including daily, weekly,
monthly, or semiannually.
See notes to financial statements.
-38-
<PAGE> 40
QUALIVEST FUNDS
U.S. TREASURY MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ---------- ---------------------------- ------------
<C> <S> <C>
U.S. TREASURY BILLS (51.9%):
$6,000,000 8/7/97...................... $ 5,994,740
6,000,000 8/21/97..................... 5,982,275
6,000,000 8/28/97..................... 5,976,836
6,000,000 9/11/97..................... 5,965,731
9,000,000 9/18/97..................... 8,939,400
3,000,000 9/25/97..................... 2,976,694
3,000,000 10/2/97..................... 2,974,632
6,000,000 10/9/97..................... 5,941,408
3,000,000 10/16/97.................... 2,968,460
9,000,000 10/23/97.................... 8,895,558
6,000,000 11/6/97..................... 5,918,965
12,000,000 11/13/97.................... 11,821,726
6,000,000 11/20/97.................... 5,905,280
3,000,000 12/11/97.................... 2,943,790
Total U.S. Treasury Bills 83,205,495
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ---------- ---------------------------- ------------
<C> <S> <C>
U.S. TREASURY NOTES (38.1%):
$6,000,000 6.50%, 8/15/97.............. $ 6,002,252
3,000,000 8.63%, 8/15/97.............. 3,003,473
4,000,000 5.63%, 8/31/97.............. 3,999,796
6,000,000 6.00%, 8/31/97.............. 6,001,089
3,000,000 5.50%, 9/30/97.............. 2,999,847
6,000,000 5.75%, 9/30/97.............. 6,003,410
9,000,000 8.75%, 10/15/97............. 9,059,697
3,000,000 5.62%, 10/31/97............. 3,001,224
6,000,000 5.75%, 10/31/97............. 6,004,383
3,000,000 7.38%, 11/15/97............. 3,015,256
6,000,000 8.88%, 11/15/97............. 6,055,486
6,000,000 5.38%, 11/30/97............. 5,997,160
Total U.S. Treasury Notes 61,143,073
INVESTMENT COMPANIES (9.5%):
7,280,648 Dreyfus Treasury Prime Cash
Management, Class A....... 7,280,648
8,000,000 Provident Treasury Trust
Fund...................... 8,000,000
Total Investment Companies 15,280,648
Total (Cost--$159,629,216) (a) $159,629,216
</TABLE>
- ---------
Percentages indicated are based on net assets of $160,281,500.
(a) Cost for federal income tax and financial reporting purposes are the same.
See notes to financial statements.
-39-
<PAGE> 41
QUALIVEST FUNDS
TAX-FREE MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1997
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ------------ -------------------------- ------------
<C> <S> <C>
MUNICIPAL BONDS (95.8%):
Alaska (3.7%):
$ 1,500,000 State Housing Finance
Corp. Revenue, Series C,
3.60%*, 6/1/26**, LOC:
Swiss Bank.............. $ 1,500,000
-----------
California (6.1%):
1,000,000 Yuba County, GO, 4.50%,
10/31/97................ 1,001,800
1,500,000 Los Angeles International
Airport, Airport
Improvement Revenue,
3.70%*, 12/1/25**, LOC:
Societe Generale........ 1,500,000
-----------
2,501,800
-----------
Colorado (4.2%):
715,000 Adams County GO, School
District #14, 0.00%,
12/1/97................. 705,993
1,000,000 Denver, City & County
Airport , Revenue, Sub
Series C, 3.75%*,
12/1/25**............... 1,000,000
-----------
1,705,993
-----------
Florida (5.9%):
925,000 Jacksonville Electric
Authority Revenue,
3.90%,10/1/97........... 925,075
1,500,000 State Housing Finance
Agency, Multifamily
Housing Revenue, Series
EE, 3.80%*, 9/1/08**.... 1,500,000
-----------
2,425,075
-----------
Idaho (2.4%):
1,000,000 State GO, Tax Anticipation
Note, 4.63%, 6/30/98.... 1,006,541
-----------
Illinois (10.3%):
1,500,000 Chicago O Hare
International Airport,
General Airport 2nd
Lein, Revenue, 3.65%*,
1/1/15**, LOC: Societe
Generale................ 1,500,000
1,000,000 Decatur, Water Revenue,
3.80%, 9/16/97.......... 1,000,000
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ------------ -------------------------- ------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Illinois, continued:
$ 1,000,000 State Development Finance
Authority, PCR, Power
Co. Project, Series B,
3.65%*, 11/1/28**, LOC:
Canadian Imperial
Bank.................... $ 1,000,000
700,000 State Development Finance
Authority, Presbyterian
Home Lake, 3.65%*,
9/1/31**, LOC: LaSalle
National Bank........... 700,000
-----------
4,200,000
-----------
Kansas (2.1%):
855,000 Leavenworth County GO,
Refunding, Series B,
3.70%, 12/1/97.......... 855,000
-----------
Maryland (3.7%):
1,500,000 Montgomery County Housing
Opportunity, Refunding,
Issue I, 3.80%*,
11/1/20................. 1,500,000
-----------
Minnesota (2.4%):
1,000,000 St. Cloud, Health Care
Facility Revenue, Series
A, 3.70%*,7/1/27**, LOC:
Rabobank Nederland...... 1,000,000
-----------
Missouri (3.7%):
1,500,000 Columbia, Revenue, Series
A, 3.65%*, 6/1/08** LOC:
Toronto Dominion Bank... 1,500,000
-----------
Nebraska (2.5%):
1,000,000 Nebraska Educational
Facility Authority,
Educational Equipment &
Improvement, 3.65%*,
12/1/00**, FGIC......... 1,000,000
-----------
Nevada (1.0%):
415,000 Lyon County GO, School
District Refunding,
4.00%, 8/1/97, AMBAC.... 415,000
-----------
New Hampshire (1.3%):
500,000 State Turnpike System
Revenue, 8.38%,
11/1/17................. 515,632
-----------
</TABLE>
Continued
-40-
<PAGE> 42
QUALIVEST FUNDS
TAX-FREE MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ------------ -------------------------- ------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
New York (2.4%):
$ 1,000,000 Nassau County, 4.50%,
8/15/97................. $ 1,000,219
-----------
Ohio (3.7%):
1,500,000 Columbus GO, Revenue,
3.50%*, 6/1/16**, LOC:
Westdeutsche
Landesbank.............. 1,500,000
-----------
Oklahoma (3.7%):
1,500,000 Garfield County,
Industrial Authority,
PCR, Refunding, Oklahoma
Gas & Electric Co.
Project A, 3.70%*,
1/1/25**................ 1,500,000
-----------
Oregon (11.2%):
200,000 Eugene Electric Utility,
Revenue, 4.00%,
8/1/97.................. 200,000
1,400,000 Hillsboro, Graduate
Institute Revenue,
3.75%*, 8/1/11, LOC:
Bank of America......... 1,400,000
1,500,000 State Health, Housing,
Educational & Cultural
Facilities Authority,
Peace Health Revenue,
3.65%*, 12/1/15, LOC:
Rabobank Nederland...... 1,500,000
355,000 State Health, Housing,
Educational & Cultural
Facilities Authority,
George Fox University,
Revenue, Series A,
5.50%, 3/1/98........... 358,301
900,000 Umatilla County, Hospital
Facility Authority
Revenue, Franciscan
Health Systems, 3.70%*,
12/1/24**, LOC: Toronto
Dominion Bank........... 900,000
200,000 Umatilla County, Hospital
Facility Authority
Revenue, Franciscan
Health Systems, Series
B, 3.70%*, 12/1/24**,
LOC: Toronto Dominion
Bank.................... 200,000
-----------
4,558,301
-----------
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ------------ -------------------------- ------------
MUNICIPAL BONDS, CONTINUED:
South Carolina (2.4%):
$ 1,000,000 York County, 3.70%,
9/9/97.................. $ 1,000,000
-----------
Tennessee (1.2%):
500,000 State GO, Refunding,
Series A, 4.40%,
3/1/98.................. 501,915
-----------
Texas (8.6%):
1,000,000 Plano GO, Independent
School District
Refunding, 3.75%,
2/15/98................. 998,650
1,000,000 State GO, Water
Development Refunding,
Series B, 7.10%,
8/1/97.................. 1,000,000
1,500,000 Texas A&M University,
3.65%, 8/28/97.......... 1,500,000
-----------
3,498,650
-----------
Utah (3.7%):
1,500,000 Salt Lake County, Housing
Authority, Santa Fe
Apartment Project,
Revenue Refunding,
3.60%*, 7/1/22**, LOC:
Dresdner Bank AG........ 1,500,000
-----------
Vermont (3.7%):
1,500,000 State Student Assistance
Corp., Student Loan,
Revenue, 3.80%*,
1/1/98**, LOC: National
Westminster............. 1,500,000
-----------
Virginia (3.4%):
1,400,000 Fairfax County, Industrial
Development Authority,
Revenue Refunding,
3.70%*, 10/1/16**, LOC:
Credit Susse............ 1,400,000
-----------
Washington (2.5%):
1,000,000 State GO, Series C, 5.00%,
1/1/98.................. 1,005,706
-----------
Total Municipal Bonds 39,089,832
-----------
</TABLE>
Continued
-41-
<PAGE> 43
QUALIVEST FUNDS
TAX-FREE MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ------------ -------------------------- ------------
<C> <S> <C>
COMMERCIAL PAPER (2.5%):
Texas (2.5%):
$ 1,000,000 Texas PFA, 3.70%,
7/15/97................. $ 1,000,000
-----------
Total Commercial Paper 1,000,000
-----------
INVESTMENT COMPANIES (1.1%):
449,395 Federated-Tax Free
Obligation Money
Market.................. 449,395
-----------
Total Investment Companies 449,395
-----------
Total (Cost--$40,539,227)(a) $ 40,539,227
===========
</TABLE>
- ---------
Percentages indicated are based on net assets of $40,804,977.
(a) Cost for federal income tax and financial reporting purposes are the same.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon bank prime rates or an index of
market interest rates. The rate reflected on the Schedule of Portfolio
Investments is the rate in effect at July 31, 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>
AMBAC Insured by AMBAC Indemnity Corporation.
FGIC Insured by Financial Guaranty Insurance Corp.
FSA Insured by Financial Security Assurance
GO General Obligation
LOC Letter of Credit
PCR Pollution Control Revenue
</TABLE>
See notes to financial statements.
-42-
<PAGE> 44
QUALIVEST FUNDS
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
ASSET BACKED SECURITIES (1.9%):
$ 1,500,000 EquiCredit, 7.35%,
6/15/14.................. $ 1,521,810
2,013,000 Standard Credit Card,
7.88%, 7/23/00........... 2,066,405
------------
Total Asset Backed Securities 3,588,215
------------
CORPORATE BONDS (15.9%):
Automotive (1.6%):
1,000,000 Daimler-Benz North America,
7.38%, 9/15/06........... 1,053,750
1,000,000 Ford Motor Credit Co.,
5.75%, 1/25/01........... 987,500
1,000,000 General Motors Acceptance
Corp., 7.25%, 5/15/03.... 1,037,500
------------
3,078,750
------------
Banking (1.1%):
1,000,000 Norwest, 6.75%, 5/12/00.... 1,013,750
1,000,000 Westpac Banking, 9.13%,
8/15/01.................. 1,096,250
------------
2,110,000
------------
Banking -- Foreign (1.9%):
1,000,000 ABN Amro Bank N V., 7.13%,
6/18/07.................. 1,037,500
1,000,000 Australia & New Zealand,
7.55%, 9/15/06........... 1,063,750
500,000 Bayerishe Landesbank,
7.38%, 12/14/02.......... 526,875
1,000,000 Bayerishe Landesbank-NY,
6.20%, 2/9/06............ 978,750
------------
3,606,875
------------
Chemicals (0.5%):
1,000,000 English China Clays, 7.38%,
10/1/02.................. 1,035,000
------------
Financial Services (1.6%):
1,000,000 Associates Corp., N.A.,
6.00%, 3/15/00........... 996,250
1,000,000 Chrysler Financial Corp.,
6.18%, 12/15/00.......... 998,750
1,000,000 General Electric Capital
Corp., 5.47%, 1/19/99.... 996,250
------------
2,991,250
------------
Government Agency (0.5%):
1,000,000 Hydro-Quebec, 7.38%,
2/1/03................... 1,037,500
------------
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Insurance (0.6%):
$ 1,000,000 SAFECO Credit Corp., 7.88%,
4/1/05................... $ 1,067,500
------------
Manufacturing -- Consumer Goods (0.5%):
1,000,000 VF Corp., 7.60%, 4/1/04.... 1,036,250
------------
Natural Gas Transmission & Distribution (0.6%):
1,000,000 Enron, 7.63%, 9/10/04...... 1,058,750
------------
Oil & Gas Exploration & Production Services (2.2%):
1,000,000 Baker Hughes, Inc., 7.63%,
2/15/99.................. 1,025,000
1,000,000 Occidental Petroleum,
6.41%, 11/30/00.......... 1,005,000
1,000,000 Shell Oil Co., 6.63%,
7/1/99................... 1,013,750
1,000,000 Union Oil of California
Corp., 8.75%, 8/15/01.... 1,082,500
------------
4,126,250
------------
Retail Stores (2.1%):
1,000,000 Dayton Hudson, 6.80%,
10/1/01.................. 1,012,500
1,000,000 Price/Costco, Inc., 7.13%,
6/15/05.................. 1,033,750
1,000,000 Sears, 6.69%, 4/30/01...... 1,012,500
1,000,000 Wal-Mart Stores, 6.75%,
5/15/02.................. 1,022,500
------------
4,081,250
------------
Utilities -- Electric (2.2%):
1,057,000 Consolidated Edison, 6.38%,
4/1/03................... 1,060,964
1,000,000 National Rural Utilities,
8.50%, 2/15/98........... 1,015,000
1,000,000 PacifiCorp, 6.75%,
4/1/05................... 1,013,750
1,057,000 Public Service Electric &
Gas, 7.63%, 2/1/00....... 1,092,673
------------
4,182,387
------------
Utilities -- Telephone (0.5%):
1,000,000 Nippon Telephone, 9.50%,
7/27/98.................. 1,035,000
------------
Total Corporate Bonds 30,446,762
------------
MORTGAGE PASS THROUGH (8.3%):
Federal Home Loan Mortgage Corp.:
1,813,074 7.00%, 5/15/03............. 1,852,744
2,500,000 6.00%, 3/15/19............. 2,485,775
</TABLE>
Continued
-43-
<PAGE> 45
QUALIVEST FUNDS
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
MORTGAGE PASS THROUGH, CONTINUED:
Federal National Mortgage Assoc.:
$ 2,497,900 7.05%, 6/25/02............. $ 2,523,853
2,750,000 6.50%, 5/18/20............. 2,628,890
3,000,000 7.00%, 5/18/21............. 2,935,200
Government National Mortgage Assoc:
3,319,647 7.50%, 4/20/03............. 3,422,456
------------
Total Mortgage Pass Through 15,848,918
------------
U.S. GOVERNMENT AGENCIES (12.6%):
Federal Home Loan Bank:
2,000,000 6.67%, 7/9/02.............. 2,015,300
Federal Home Loan Mortgage Corp.:
3,000,000 6.78%, 3/15/04............. 3,009,660
1,000,000 7.12%, 3/27/06............. 1,024,540
Federal National Mortgage Assoc.:
2,000,000 5.67%, 1/25/01............. 1,973,340
3,000,000 6.87%, 10/2/01............. 3,054,930
3,000,000 6.63%, 4/18/01............. 3,055,230
2,000,000 6.50%, 1/18/04............. 2,007,600
2,000,000 7.30%, 5/13/04............. 2,034,300
2,000,000 6.81%, 11/21/06............ 2,019,140
1,448,191 7.00%, 3/1/09.............. 1,461,688
589,327 7.00%, 6/1/10.............. 594,885
Private Export Funding Corp.:
1,000,000 5.75%, 4/30/98............. 1,001,250
Student Loan Marketing Assoc.:
943,000 7.72%, 1/25/99............. 969,206
------------
Total U.S. Government Agencies 24,221,069
------------
U.S. TREASURY NOTES (55.4%):
4,000,000 6.13%, 5/15/98............. 4,016,800
4,500,000 5.88%, 10/31/98............ 4,511,025
20,150,000 6.25%, 3/31/99............. 20,329,488
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
U.S. TREASURY NOTES, CONTINUED:
$ 3,300,000 6.88%, 3/31/00............. $ 3,386,130
15,575,000 6.75%, 4/30/00............. 15,939,922
18,400,000 6.38%, 3/31/01............. 18,706,544
1,965,000 7.50%, 11/15/01............ 2,083,411
13,950,000 6.25%, 2/15/03............. 14,161,901
2,500,000 5.88%, 2/15/04............. 2,489,600
7,200,000 7.25%, 8/15/04............. 7,718,616
12,500,000 6.50%, 8/15/05............. 12,861,500
------------
Total U.S. Treasury Notes 106,204,937
------------
Total Investments, at value 180,309,901
------------
REPURCHASE AGREEMENTS (4.2%):
7,966,043 Merrill Lynch, 5.78%*, Open
repurchase agreement
(Collateralized by
8,605,000 U.S. Treasury
Strip's, 8/15/98, market
value -- $8,128,541)..... 7,966,043
------------
Total Repurchase Agreements 7,966,043
------------
Total (Cost -- $186,576,792)(a) $188,275,944
============
</TABLE>
- ---------
Percentages are based on net assets of $191,633,374.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon bank prime rates or an index of market
interest rates. The rate reflected on the Schedule of Portfolio Investments is
the rate in effect at July 31, 1997.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting in excess of federal income tax reporting of $2,853.
Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $ 1,839,205
Unrealized depreciation... (142,906)
----------
Net unrealized
appreciation............ $ 1,696,299
==========
</TABLE>
See notes to financial statements.
-44-
<PAGE> 46
QUALIVEST FUNDS
DIVERSIFIED BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
CORPORATE BONDS (8.5%):
Automotive (0.4%):
$1,000,000 Ford Motor Credit Co.,
5.75%, 1/25/01............ $ 987,500
------------
Banking (0.4%):
1,000,000 Westpac Banking, 9.13%,
8/15/01................... 1,096,250
------------
Credit Institutions -- Personal (0.4%):
1,000,000 Commercial Credit Co.,
6.38%, 9/15/02............ 1,003,750
------------
Energy (0.4%):
1,000,000 Consolidate Edison, 6.50%
2/1/01.................... 1,011,250
------------
Financial Services (0.9%):
1,500,000 General Motors Acceptance
Corp., 6.38%, 6/27/00..... 1,505,624
1,000,000 Norwest Financial, 6.25%,
12/15/07.................. 973,750
------------
2,479,374
------------
Financial--Commercial (0.4%):
1,000,000 General Electric Capital
Corp., 5.47%, 1/19/99..... 996,250
------------
Forest Products (0.4%):
1,000,000 Weyerhauser Co., 7.25%,
7/1/13.................... 1,041,250
------------
Health Care Products (0.4%):
1,000,000 Johnson & Johnson, 8.25%,
11/9/04................... 1,110,000
------------
Industrial Goods & Services (0.8%):
2,000,000 Hertz Corp., 7.00%,
5/1/02.................... 2,042,500
------------
Insurance (0.4%):
1,000,000 Safeco Credit Corp., 7.88%,
4/1/05.................... 1,067,500
------------
Manufacturing--Consumer Goods (0.4%):
1,000,000 VF Corp, 7.60%, 4/1/04...... 1,036,250
------------
Oil & Gas Utility (0.8%):
1,000,000 Enron Corp., 7.13%,
5/15/07................... 1,030,000
1,000,000 Occidental Petroleum, 6.39%,
11/9/00................... 1,003,750
------------
2,033,750
------------
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Railroads (0.3%):
$ 958,440 Conrail, Inc., 6.76%,
5/25/15................... $ 980,005
------------
Retail Stores (0.8%):
1,000,000 Price/Costco, Inc., 7.13%,
6/15/05................... 1,033,750
1,000,000 Wal-Mart Stores, 6.75%,
5/15/02................... 1,022,500
------------
2,056,250
------------
Telecommunications (0.5%):
1,250,000 Airtouch Communications,
7.50%, 7/15/06............ 1,315,625
------------
Utility--Electric (0.8%):
1,000,000 Pacific Gas Transmission,
7.10%, 6/1/05............. 1,022,500
1,000,000 PacifiCorp, 6.75%, 4/1/05... 1,013,750
------------
2,036,250
------------
Total Corporate Bonds 22,293,754
------------
ASSET BACKED SECURITIES (2.3%)
2,000,000 Saxon Asset Securities
Trust, 6.48%, 11/25/20,
Series 1996-2 Class A2.... 2,006,640
4,000,000 Green Tree 1996-F A3: 6.90%,
6/15/05................... 4,084,000
------------
Total Asset Backed Securities 6,090,640
------------
MORTGAGE PASS THROUGH (17.3%):
Federal Home Loan Mortgage Corporation:
2,058,556 7.50%, 10/1/22, Pool #
D25558.................... 2,095,486
2,737,999 7.50%, 2/1/23, Pool #
C00209.................... 2,787,009
3,934,694 8.50%, 6/1/24, Pool #
G00238.................... 4,098,102
------------
8,980,597
Federal National Mortgage Association:
2,658,722 6.50%, 2/1/09, Pool #
190255.................... 2,648,193
3,128,560 6.50%, 6/1/10, Pool #
303408.................... 3,115,264
1,484,117 8.00%, 5/1/24, Pool#
250066.................... 1,528,908
1,417,467 8.00%, 10/1/24, Pool#
250144.................... 1,460,147
------------
8,752,512
------------
</TABLE>
Continued
-45-
<PAGE> 47
QUALIVEST FUNDS
DIVERSIFIED BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
MORTGAGE PASS THROUGH, CONTINUED:
Government National Mortgage Association:
$1,000,000 7.00%, 9/15/02.............. $ 1,028,750
6,537,598 6.50%, 11/18/23, Pool#
352028.................... 6,437,704
3,521,353 7.00%, 7/15/23, Pool#
353131.................... 3,528,889
5,000,016 6.00%, 12/15/23, Pool#
354710.................... 4,801,216
1,748,284 6.50%, 4/15/24, Pool#
354790.................... 1,720,748
3,988,711 7.50%, 2/15/24, Pool#
372801.................... 4,056,559
3,915,434 8.50%, 3/15/22, Pool#
303790.................... 4,075,888
1,804,630 7.00%, 8/15/23, Pool#
337540.................... 1,808,564
------------
27,458,318
------------
Total Mortgage Pass Through 45,191,427
------------
MUNICIPAL BONDS (1.2%):
Washington (1.2%):
3,000,000 Chelan County, Washington,
6.96%, 6/1/04............. 3,108,750
------------
Total Municipal Bonds 3,108,750
------------
U.S. GOVERNMENT AGENCIES (6.1%):
Federal Farm Credit Banks:
1,000,000 7.06%, 5/24/10.............. 1,058,430
------------
Federal National Mortgage Association:
1,000,000 7.05%, 11/12/02............. 1,044,150
2,000,000 6.44%, 6/21/05.............. 2,020,680
2,000,000 6.54%, 10/3/05.............. 2,033,920
3,958,000 6.75%, 12/25/21............. 3,997,303
2,695,498 8.00%, 3/1/23............... 2,778,007
2,442,846 7.50%, 4/1/26............... 2,483,862
427,728 7.50%, 5/1/26............... 434,871
------------
14,792,793
------------
Total U.S. Government Agencies 15,851,223
------------
U.S. TREASURY BILLS (4.6%):
9,000,000 5.63%, 2/28/01.............. 8,937,810
3,000,000 6.75%, 6/25/15.............. 3,014,670
------------
Total U.S. Treasury Bills $ 11,952,480
------------
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
U.S. TREASURY BONDS (15.5%):
$3,450,000 7.25%, 5/15/16.............. $ 3,793,241
5,000,000 9.13%, 5/15/18.............. 6,578,250
9,000,000 7.25%, 8/15/22.............. 9,966,420
6,000,000 7.13%, 2/15/23.............. 6,563,640
13,800,000 6.25%, 8/15/23.............. 13,598,934
------------
Total U.S. Treasury Bonds 40,500,485
------------
U.S. TREASURY NOTES (41.5%):
9,500,000 5.13%, 11/30/98............. 9,436,159
2,000,000 5.63%, 1/31/98.............. 2,000,520
8,500,000 6.50%, 4/30/99.............. 8,610,585
8,350,000 7.13%, 9/30/99.............. 8,581,212
6,500,000 7.50%, 10/31/99............. 6,734,520
9,000,000 6.75%, 4/30/00.............. 9,210,870
9,000,000 6.13%, 7/31/00.............. 9,074,520
7,000,000 7.50%, 11/15/01............. 7,421,820
8,100,000 7.50%, 5/15/02.............. 8,638,002
8,300,000 6.38%, 8/15/02.............. 8,471,312
8,000,000 6.25%, 2/15/03.............. 8,121,520
5,250,000 7.50%, 2/15/05.............. 5,715,098
4,000,000 6.88%, 5/15/06.............. 4,219,400
11,000,000 7.25%, 5/15/16.............. 12,094,390
------------
Total U.S. Treasury Notes 108,329,928
------------
Total Investments, at value 253,318,687
------------
REPURCHASE AGREEMENTS (1.4%):
3,779,993 Merrill Lynch, 5.78%*, Open
Repurchase Agreement
(Collateralized by
4,145,000 U.S. Treasury
Strip's, 11/15/98, market
value -- 3,858,912)....... 3,779,993
------------
Total Repurchase Agreements 3,779,993
------------
Total (Cost--$251,511,305)(a) $257,098,680
============
</TABLE>
- ---------
Percentages indicated are based on net assets of $261,022,003.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon bank prime rates or an index of
market interest rates. The rate reflected on the Schedule of Portfolio
Investments is the rate in effect at July 31, 1997.
(a) Represents cost for federal income tax purposes and financial reporting
purposes and differs from value by net unrealized appreciation of securities
as follows:
<TABLE>
<S> <C>
Unrealized appreciation.... $6,156,827
Unrealized depreciation.... (569,452)
-----------
Net unrealized
appreciation............. $5,587,375
===========
</TABLE>
See notes to financial statements.
-46-
<PAGE> 48
QUALIVEST FUNDS
SMALL COMPANIES VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1997
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS (91.8%)
Advertising (0.5%):
174,000 May & Speh Inc.(b)......... $ 2,457,750
------------
Aircraft & Aircraft Parts (Aviation) (0.3%):
80,200 Willis Lease Finance
Corp.(b)................. 1,182,950
------------
Apparel (0.4%):
125,700 Tarrant Apparel Group(b)... 2,011,200
------------
Automotive Parts (1.9%):
82,200 Bonded Motors, Inc(b)...... 678,150
103,400 Edelbrock Corp.(b)......... 2,029,225
145,600 Excel Industries, Inc...... 2,939,300
77,847 Supreme Industries,
Inc.(b).................. 695,758
115,300 Walbro Corp................ 2,551,013
------------
8,893,446
------------
Banks (2.3%):
177,700 First Rep Bancorp,
Inc.(b).................. 4,309,225
104,600 Onbank, Inc................ 5,295,375
68,030 UST Corp................... 1,488,156
------------
11,092,756
------------
Beverages (0.8%):
82,900 Suiza Foods Corp.(b)....... 3,616,499
------------
Building Materials (2.2%):
44,500 Centex Construction
Products................. 1,290,500
25,100 Central Sprinkler
Corp.(b)................. 508,275
150,500 Dayton Superior Corp.(b)... 2,201,063
223,100 Morgan Products Ltd.(b).... 1,561,700
65,800 Simpson Manufacturing
Co.(b)................... 2,237,200
117,800 Synthetic Industries(b).... 2,694,675
------------
10,493,413
------------
Business Services (3.5%):
136,700 Bell & Howell Holdings
Co.(b)................... 4,212,069
430,100 Borg-Warner Security
Corp.(b)................. 7,446,106
147,400 Complete Management Inc.... 2,201,788
47,100 Leasing Solutions
Inc.(b).................. 877,238
54,700 Proxima Corp.(b)........... 297,431
242,300 Sapiens International...... 1,393,225
------------
16,427,857
------------
Chemicals -- Specialty (0.7%):
34,000 Cambrex Corp............... 1,623,500
90,900 Consep, Inc.(b)............ 215,888
149,400 CPAC, Inc.................. 1,680,750
------------
3,520,138
------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Computers (0.0%):
55,000 Plaintree Systems,
Inc.(b).................. $ 171,875
------------
Commercial Services (0.6%):
108,600 Coinmach(b)................ 2,253,450
160,700 Intelidata Technologies
Corp.(b)................. 743,237
------------
2,996,687
------------
Computers & Peripherals (5.9%):
590,175 Applied Magnetics Corp..... 19,033,144
300,000 Concurrent Computer
Corp.(b)................. 431,250
222,700 Control Data Systems(b).... 4,495,756
71,200 National Computer Systems,
Inc...................... 1,958,000
175,300 Planar Systems(b).......... 1,884,475
542,700 Zycad Corp.(b)............. 271,350
------------
28,073,975
------------
Construction (0.4%):
75,100 Continental Homes Holding
Corp..................... 1,708,525
------------
Consumer Goods (0.3%):
94,200 A.T. Cross Co.............. 836,025
55,800 Marks Brothers
Jewelers(b).............. 718,425
------------
1,554,450
------------
Consumer Services (0.8%):
92,500 Matthews International
Corp., Class-A........... 3,711,562
------------
Containers -- Metal, Glass, Paper, Plastic (0.5%):
100,200 Brockway Standard(b)....... 2,473,687
------------
Drug Stores (1.2%):
573,600 Drug Emporium, Inc.(b)..... 2,617,050
153,450 Genovese Drug Stores,
Inc...................... 2,992,275
------------
5,609,325
------------
Educational Services (0.3%):
210,200 Tro Learning, Inc.(b)...... 1,537,088
------------
Electric Component (0.4%):
80,700 TNP Enterprises, Inc....... 1,977,150
------------
</TABLE>
Continued
-47-
<PAGE> 49
QUALIVEST FUNDS
SMALL COMPANIES VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Electrical Equipment (4.3%):
145,000 AFC Cable Systems, Inc..... $ 4,150,625
49,800 Exide Electronics Group,
Inc.(b).................. 1,182,750
403,525 Magnetek(b)................ 8,247,042
185,100 Pioneer-Standard
Electronics, Inc......... 2,614,538
46,200 Scotsman Industries,
Inc...................... 1,253,175
90,900 Thomas Industries, Inc..... 2,692,913
------------
20,141,043
------------
Electrical Utility (0.3%):
245,300 El Paso Electric Co.(b).... 1,594,450
------------
Electronic Computing (0.6%):
76,100 Continental Circuits
Corp.(b)................. 1,407,850
90,300 Praegitzer Industries,
Inc.(b).................. 1,348,856
------------
2,756,706
------------
Electronics (0.1%):
67,600 California Micro Devices
Corp.(b)................. 464,750
------------
Electronics -- Defense Related (0.5%):
129,000 FEI Co.(b)................. 2,354,250
------------
Electronic & Electrical -- General (0.3%):
85,300 IEC Electronics Corp(b).... 1,279,500
31,400 Mentor Graphics Corp.(b)... 333,625
------------
1,613,125
------------
Energy (0.6%):
127,200 Trigen Energy Corp......... 2,846,100
------------
Engineering, Industrial Construction (0.2%):
134,400 Guy F. Atkinson Co.,
California(b)............ 991,200
------------
Entertainment (0.1%):
143,900 Moovies, Inc.(b)........... 530,631
------------
Environmental Control (3.2%):
1,347,300 Air & Water Technologies,
Class A(b)............... 4,210,313
681,600 Catalytica, Inc.(b)........ 10,309,200
323,900 Envirosource, Inc.(b)...... 627,556
------------
15,147,069
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
COMMON STOCKS, CONTINUED:
Financial Services (2.7%):
93,100 Aames Financial Corp....... $ 1,995,831
90,200 Dignity Partners,
Inc.(b).................. 298,788
44,200 Medallion Financial
Corp..................... 834,275
196,100 Payment Services,
Inc.(b).................. 3,211,138
204,000 Rockford Industries,
Inc(b)................... 1,989,000
224,000 WFS Financial, Inc.(b)..... 4,564,000
------------
12,893,032
------------
Food Distributors & Wholesalers (1.0%):
95,500 Performance Food Group,
Inc.(b).................. 2,292,000
94,300 Rykoff Sexton, Inc......... 2,339,819
------------
4,631,819
------------
Furniture (0.6%):
114,700 Stanley Furniture Co.,
Inc(b)................... 3,039,550
------------
Garden Products (0.1%):
23,800 Acorn Products Inc.(b)..... 321,300
------------
Health Care (0.1%):
167,300 Unison Healthcare
Corp.(b)................. 365,969
------------
Heavy Machinery -- Industrial, Farm, Construction (0.6%):
179,300 Park-Ohio Industries,
Inc.(b).................. 2,700,706
------------
Household Goods -- Appliances, Furnishings, Electric
(1.4%):
97,800 Libbey, Inc................ 3,643,050
132,500 Quaker Fabric Corp.(b)..... 2,782,500
------------
6,425,550
------------
Insurance -- Life (0.7%):
80,000 Amvestors Financial
Corp..................... 1,800,000
40,000 Conseco, Inc............... 1,630,000
------------
3,430,000
------------
Insurance -- Property, Casualty, Health & Other (11.4%):
83,800 Acmat Corp.(b)............. 1,319,850
139,300 American Eagle Group,
Inc.(b).................. 78,356
88,200 Chandler Insurance Company,
Ltd.(b).................. 363,825
143,575 Delphi Financial
Group(b)................. 5,491,744
158,700 Enhance Financial Services
Group, Inc............... 7,935,000
</TABLE>
Continued
-48-
<PAGE> 50
QUALIVEST FUNDS
SMALL COMPANIES VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Insurance -- Property, Casualty, Health & Other,
Continued:
63,900 Farm Family Holdings,
Inc.(b).................. $ 1,928,981
288,310 Fremont General Corp....... 12,325,253
162,700 John Alden Financial
Corp..................... 3,518,388
125,000 Lasalle Re Holdings,
Ltd...................... 4,171,875
105,024 Orion Capital Corp......... 4,391,316
159,750 Penn Treaty American
Corp.(b)................. 5,331,656
92,500 Philadelphia Consolidated
Holding Corp.(b)......... 3,630,625
58,900 Scpie Holdings, Inc........ 1,553,488
36,400 Symons International Group,
Inc.(b).................. 682,500
103,400 Westbridge Capital
Corp.(b)................. 956,450
------------
53,679,307
------------
Leisure -- Recreation, Gaming (0.9%):
100,600 Cannondale Corp.(b)........ 1,785,650
622,700 Topps, Inc.(b)............. 2,296,206
------------
4,081,856
------------
Machine Tools (0.4%):
174,100 Bridgeport Machines,
Inc.(b).................. 2,067,438
------------
Medical Services (0.6%):
233,600 Diagnostic Health Services,
Inc.(b).................. 2,598,800
------------
Medical Supplies (1.7%):
294,100 Cholestech Corp.(b)........ 1,746,219
321,300 Polymedica Industries(b)... 2,931,863
158,900 Space Labs Medical,
Inc.(b).................. 3,495,800
------------
8,173,882
------------
Metals -- Fabrication (0.3%):
249,500 Foster L.B. Co.(b)......... 1,216,312
------------
Miscellaneous Manufacturing (0.7%):
83,700 Bacou USA, Inc.(b)......... 1,370,588
29,100 Tredegar Industries,
Inc...................... 1,811,475
------------
3,182,063
------------
Office Equipment & Supplies (0.5%):
81,000 Kentek Information
Systems.................. 708,750
121,000 Shelby Williams Industries,
Inc...................... 1,860,375
------------
2,569,125
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
COMMON STOCKS, CONTINUED:
Oil & Gas Exploration, Production, & Services (2.0%):
405,400 Abacan Resource Corp.(b)... $ 1,545,587
106,000 Cairn Energy USA,
Inc.(b).................. 1,152,750
256,360 Forest Oil Corp(b)......... 3,685,175
119,400 Hugoton Energy Corp.(b).... 1,492,500
160,600 Titan Exploration(b)....... 1,545,775
------------
9,421,787
------------
Paper & Related Products (0.3%):
54,750 Fibermark, Inc.(b)......... 1,214,766
------------
Pharmaceuticals (0.5%):
222,000 Roberts Pharmaceutical
Corp.(b)................. 2,220,000
------------
Pipes -- Lines (0.1%):
37,500 Midcoast Energy Resources
Inc.(b).................. 679,687
------------
Pollution Control Services & Equipment (0.4%):
175,900 Heidemij N.V............... 1,671,050
------------
Precision Instruments & Related (3.7%):
329,000 Brown & Sharp Mfg., Class
A(b)..................... 4,359,250
136,200 General Scanning,
Inc.(b).................. 2,451,600
284,700 Moog, Inc., Class A(b)..... 9,110,400
129,300 Unit Instruments,
Inc.(b).................. 1,664,737
------------
17,585,987
------------
Printing (0.5%):
57,800 Devon Group, Inc.(b)....... 2,326,450
------------
Real Estate Investment Trusts (3.6%):
68,200 Chelsea GCA Realty, Inc.... 2,689,637
91,500 Highwood Properties,
Inc...................... 3,053,812
104,100 Lexington Corp.
Properties............... 1,535,475
125,900 Omega Healthcare Investors,
Inc...................... 4,123,225
60,500 RFS Hotel Investors,
Inc...................... 1,104,125
95,100 Shurgard Storage Centers,
Inc...................... 2,692,519
62,600 Walden Residential
Properties, Inc.......... 1,494,575
32,500 Winston Hotels, Inc........ 446,875
------------
17,140,243
------------
Restaurants (0.8%):
252,000 Apple South, Inc........... 4,000,500
------------
</TABLE>
Continued
-49-
<PAGE> 51
QUALIVEST FUNDS
SMALL COMPANIES VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Retail -- Specialty Stores (2.1%):
46,500 The Finish Line, Class A... $ 627,750
132,800 Finlay Enterprises,
Inc.(b).................. 2,224,400
117,100 Friedman's, Inc.(b)........ 1,800,412
80,300 Piercing Pagoda, Inc.(b)... 2,328,700
96,100 Regis Corp................. 2,378,475
154,100 Sound Advice, Inc.(b)...... 288,937
235,300 Strouds, Inc.(b)........... 455,894
------------
10,104,568
------------
Savings & Loan Companies (3.0%):
35,300 Astoria Financial Corp..... 1,703,225
69,400 Eagle Financial Corp.(b)... 2,342,250
214,400 T R Financial Corp......... 5,815,600
83,900 Webster Financial Corp..... 4,268,412
------------
14,129,487
------------
Shoes, Leather Goods, Clothing Accessories (0.4%):
94,000 Deckers Outdoor Corp(b).... 658,000
74,200 K-Swiss, Inc., Class-A..... 1,363,425
------------
2,021,425
------------
Software & Computer Services (6.9%):
351,300 American Software,
Inc.(b).................. 2,986,050
121,805 Banctec, Inc.(b)........... 2,976,610
448,800 Borland International(b)... 3,702,600
134,500 Cimatron, Ltd.(b).......... 672,500
168,100 Consilium, Inc.(b)......... 672,400
273,200 Dataflex Corp.(b).......... 887,900
279,000 Fourth Shift Corp.(b)...... 1,220,625
186,400 GSE Systems, Inc.(b)....... 932,000
130,400 Government Technology
Services(b).............. 676,450
68,700 Kronos, Inc.(b)............ 1,683,150
200,700 Learmonth & Burchett
Management Systems(b).... 903,150
232,100 Micrografx, Inc.(b)........ 1,711,737
251,400 Nimbus CD International,
Inc.(b).................. 3,173,925
211,050 Pomeroy Computer
Resources(b)............. 6,753,600
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Software & Computer Services, Continued:
439,900 Triple(b).................. $ 989,775
76,700 Truevision, Inc.(b)........ 162,987
73,600 Visual Technology Number
Nine(b).................. 276,000
126,700 Wonderware Corp.(b)........ 2,035,119
------------
32,416,578
------------
Steel (1.5%):
52,300 Commercial Metals Co....... 1,660,525
105,200 Kentucky Electric Steel,
Inc.(b).................. 631,200
195,700 Northwest Pipe Co.(b)...... 4,158,625
555,700 Republic Engineered Steels,
Inc.(b).................. 764,087
------------
7,214,437
------------
Technology (0.5%):
192,500 MacNeal-Schwendler Corp.... 2,141,562
------------
Telecommunications (1.7%):
222,300 Comdial Corp.(b)........... 1,806,187
287,400 Olicom(b).................. 6,322,800
------------
8,128,987
------------
Telecommunication Equipment (0.4%):
62,000 Superior Telecom,
Inc.(b).................. 1,867,750
------------
Textile Manufacturing (0.2%):
53,800 Hampshire Group, Ltd.(b)... 833,900
------------
Toys & Bicycles -- Manufacturing (0.4%):
121,900 Huffy Corp................. 1,798,025
------------
Transport Services (1.7%):
251,100 Budget Group, Inc.(b)...... 7,846,875
------------
Transportation-Air (0.3%):
143,200 World Airways, Inc.(b)..... 1,217,200
------------
Transportation -- Marine (0.2%):
101,200 Anangel American
Shipholdings............. 1,012,000
------------
Utilities -- Electric (3.4%):
954,820 Tuscon Electric Power
Co.(b)................... 15,993,235
------------
</TABLE>
Continued
-50-
<PAGE> 52
QUALIVEST FUNDS
SMALL COMPANIES VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Video Tape Rental Services (0.3%):
266,800 Video Update, Inc.(b)...... $ 967,150
96,400 West Coast
Entertainment(b)......... 337,400
------------
1,304,550
------------
Total Common Stocks 433,617,415
------------
CONVERTIBLE BONDS (0.9%):
Drug Stores (0.1%):
740,000 Drug Emporium, Inc., 7.75%,
10/1/14.................. 677,100
------------
Electrical Equipment (0.1%):
266,000 Magnetek, Inc., 8.00%,
9/15/01.................. 353,780
------------
Environmental Control (0.2%):
1,059,000 Air & Water Technology,
8.00%, 5/15/15........... 867,056
------------
Real Estate Investment Trust (0.1%):
382,000 Maxxim Medical, 6.75%,
3/1/03................... 424,020
------------
Software & Computer Services (0.4%):
1,695,000 Recognition International,
7.25%, 4/15/11........... 1,733,137
------------
Total Convertible Bonds 4,055,093
------------
CORPORATE BONDS (1.5%):
Aerospace (0.7%):
1,910,000 Titan Corp., 8.25%,
11/1/03.................. 3,094,200
------------
Financial Services (0.1%):
390,000 Aames Financial Corp.,
5.50%, 3/15/06........... 478,237
------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Industrial Goods & Services (0.7%):
1,120,000 Complete Management, Inc.,
8.0%, 8/15/03............ $ 1,274,000
590,000 Complete Management, Inc.,
8.0%, 12/15/03........... 604,750
445,000 Leasing Solutions Inc.,
6.87%, 10/1/03........... 390,488
1,000,000 MacNeal-Schwendler, 7.88%,
8/18/04.................. 1,035,000
------------
3,304,238
------------
Total Corporate Bonds 6,876,675
------------
WARRANTS (0.4%):
Transportation -- Marine (0.4%):
318,600 Nordic American Tanker
Shipping Warrants(b)
Expires 9-30-97.......... 1,672,650
------------
Retail -- Specialty Store (0.0%):
505 Sound Advice Warrant
Warrant Expires 6/14/99 0
------------
Total Warrants 1,672,650
------------
Total Investments, at value 446,221,833
------------
REPURCHASE AGREEMENTS (5.5%):
25,961,506 Merrill Lynch, 5.78%*, Open
Repurchase Agreement,
(Collateralized by
28,391,000 U.S. Treasury
Strip's,
8/15/98-11/15/98, market
value -- $26,480,811).... 25,961,506
------------
Total Repurchase Agreements 25,961,506
------------
Total (Cost--$340,817,882)(a) $472,183,339
============
</TABLE>
- ---------
Percentages indicated are based on net assets of $472,416,707.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon bank prime rates or an index of
market interest rates. The rate reflected on the Schedule of Portfolio
Investments is the rate in effect at July 31, 1997.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting in excess of federal income tax reporting of $49,359.
Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $157,509,523
Unrealized depreciation... (26,193,425)
-----------
Net unrealized
appreciation............ $131,316,098
===========
</TABLE>
(b) Non-income producing security.
See notes to financial statements.
-51-
<PAGE> 53
QUALIVEST FUNDS
LARGE COMPANIES VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1997
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS (88.5%):
Agriculture & Livestock (0.4%):
50,000 Hudson Foods Inc........... $ 806,250
------------
Automobiles (2.5%):
89,570 Ford Motor Co.............. 3,661,174
19,600 General Motors............. 1,212,750
------------
4,873,924
------------
Automotive Parts (0.5%):
29,200 A.O. Smith Corp............ 1,045,725
------------
Banks (5.0%):
20,200 Citicorp................... 2,742,150
39,000 Corestates Financial
Corp..................... 2,405,812
10,400 First Union Corp.(N.C.).... 1,054,950
41,400 Mellon Bank Corp........... 2,088,113
20,000 Nationsbank Corp........... 1,423,750
------------
9,714,775
------------
Beverages (0.5%):
95,300 Cott Corp.................. 953,000
------------
Brokerage Firms & Security Dealers (0.6%):
30,357 Bear Stearns Cos., Inc..... 1,238,945
------------
Building Materials (1.4%):
51,600 Congoleum Corp., Class
A(b)..................... 574,050
29,900 Johns Manville Corp........ 362,537
53,000 Martin Marietta
Materials................ 1,831,813
------------
2,768,400
------------
Chemicals (3.4%):
47,400 Dexter Corp................ 1,887,112
56,400 Ecolab Inc................. 2,633,175
9,100 E.I. du Pont de Nemours
Co....................... 609,131
23,100 Ferro Corp................. 856,144
7,800 MallincKrodt, Inc.......... 273,000
11,300 Wellman, Inc............... 257,075
------------
6,515,637
------------
Computers & Peripherals (3.4%):
27,200 Digital Equipment
Corp.(b)................. 1,120,300
51,678 IBM Corp................... 5,464,949
------------
6,585,249
------------
Computer Software & Services (0.7%):
29,300 Electronic Data Services... 1,267,225
------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED
Construction (0.1%):
10,600 Continental Homes Holding
Corp..................... $ 241,150
------------
Consumer Goods (0.7%):
38,100 American Greetings Corp.... 1,276,350
------------
Diversified -- Conglomerates, Holding
Companies (0.5%):
20,000 Tenneco, Inc............... 932,500
------------
Electronic & Electrical -- General (2.4%):
31,600 Thomas & Betts Corp........ 1,805,150
56,700 Wyle Electronics........... 2,831,456
------------
4,636,606
------------
Energy (0.5%):
39,000 Union Pacific Resources
Group.................... 962,812
------------
Engineering, Industrial Construction (0.2%):
21,600 E G & G, Inc............... 442,800
------------
Entertainment (0.7%):
20,700 ITT Corp.(b)............... 1,323,506
------------
Financial Services (5.9%):
110,000 Advanta Corp., Class A..... 3,973,750
16,000 Beneficial Corp............ 1,160,000
43,000 Fannie Mae................. 2,034,438
4,753 TransAmerica Corp.......... 479,459
52,966 Travelers, Inc............. 3,810,237
------------
11,457,884
------------
Food Distributors (0.1%):
5,900 Sysco Corp................. 220,144
------------
Food Processing & Packaging (0.5%):
26,500 Universal Food Corp........ 1,007,000
------------
Forest Products (4.1%):
140,900 Boise Cascade Corp......... 5,222,106
17,500 Chesapeake Corp............ 590,625
10,800 International Paper Co..... 604,800
33,950 Rayonier, Inc.............. 1,585,041
------------
8,002,572
------------
Furniture (0.8%):
72,200 Furniture Brands
International, Inc.(b)... 1,484,613
------------
</TABLE>
Continued
-52-
<PAGE> 54
QUALIVEST FUNDS
LARGE COMPANIES VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED
Industrial Services (0.7%):
32,800 Millipore Corp............. $ 1,449,350
------------
Insurance -- Life (0.4%):
17,206 Conseco Inc................ 701,144
------------
Insurance (0.8%):
26,900 Mid-Ocean Ltd.............. 1,627,450
------------
Machine Tools (1.8%):
122,400 Cincinnati Milacron,
Inc...................... 3,427,200
------------
Manufacturing-Capital Goods (5.9%):
100,200 Albany International Corp.,
Class A.................. 2,567,625
95,800 Greenbrier Companies Inc... 1,215,463
121,200 Kennametal, Inc............ 5,840,325
68,900 Pall Corp.................. 1,731,112
------------
11,354,525
------------
Medical Services (6.7%):
65,000 Columbia/HCA Healthcare
Corp..................... 2,096,250
119,500 Foundation Health
Systems -- A (b)......... 3,868,813
243,000 Sun Healthcare Group,
Inc.(b).................. 5,148,562
60,000 Tenet Healthcare
Corp.(b)................. 1,796,250
------------
12,909,875
------------
Metals (0.7%):
29,894 Cleveland Cliffs........... 1,300,389
------------
Mobile Homes & Manufactured Housing (2.0%):
116,900 Fleetwood Enterprises,
Inc...................... 3,791,944
------------
Office Equipment & Supplies (0.5%):
48,000 Moore & Associates Ltd..... 1,041,000
------------
Oil & Gas Exploration, Production, Services (4.7%):
27,000 Ashland, Inc............... 1,434,375
97,000 Global Marine(b)........... 2,776,625
65,000 Newfield Exploration
Co.(b)................... 1,560,000
75,000 Reading & Bates Corp.(b)... 2,493,750
43,000 Union Texas Petroleum
Holdings, Inc............ 894,938
------------
9,159,688
------------
Oil -- Integrated Companies (2.1%):
20,000 Atlantic Richfield Co...... 1,496,250
53,800 Occidental Petroleum
Corp..................... 1,348,362
30,011 UNOCAL Corp................ 1,200,440
------------
4,045,052
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
COMMON STOCKS, CONTINUED
Oilfield Equipment & Services (0.3%):
16,000 McDermott International,
Inc...................... $ 489,000
------------
Pharmaceuticals (3.4%):
67,733 Astra AB................... 1,236,127
53,600 Pharmacia & Upjohn, Inc.... 2,023,400
60,000 Schering-Plough............ 3,273,750
------------
6,533,277
------------
Photography (0.7%):
20,000 Eastman Kodak Co........... 1,340,000
------------
Pollution Control Services & Equipment (0.4%):
20,000 Browning-Ferris Industries,
Inc...................... 740,000
------------
Publishing, Except Newspaper (0.1%):
7,000 Reader's Digest
Assoc.,Class B........... 169,750
------------
Railroad & Railroad Holding Companies (1.3%):
40,500 CSX Corp................... 2,500,875
------------
Real Estate (0.6%):
33,700 Lennar Corp................ 1,255,325
------------
Real Estate Investment Trusts (0.7%):
35,300 Meditrust Shares Beneficial
Interest................. 1,412,000
------------
Restaurants (0.9%):
72,000 Wendy's International...... 1,759,500
------------
Retail (2.4%):
42,000 Dillard Department Stores,
Inc., Class A............ 1,588,125
13,400 May Department Stores...... 748,725
46,000 Rite Aid Corp.............. 2,389,125
------------
4,725,975
------------
Retail -- Department Stores (1.8%):
48,000 Federated Department
Stores(b)................ 2,103,000
23,000 J. C. Penney Company,
Inc...................... 1,345,500
------------
3,448,500
------------
</TABLE>
Continued
-53-
<PAGE> 55
QUALIVEST FUNDS
LARGE COMPANIES VALUE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED
Retail -- Specialty Stores (4.0%):
93,000 BJ's Wholesale Club,
Inc.(b).................. $ 2,755,125
93,000 Homebase Inc.(b)........... 813,750
134,000 Intimate Brands Inc........ 3,090,375
44,386 The Limited, Inc........... 990,363
------------
7,649,613
------------
Semiconductors (2.0%):
30,400 Advanced Micro Devices,
Inc.(b).................. 1,065,900
72,500 National Semiconductor
Corp.(b)................. 2,283,750
4,968 Texas Instruments, Inc..... 571,320
------------
3,920,970
------------
Services (Non-Financial) (0.4%):
20,000 Loewen Group Inc........... 700,000
------------
Software & Computer Services (0.2%):
43,300 Intergraph Corp.(b)........ 416,763
------------
Textile Manufacturing (0.1%):
5,300 Springs Industries, Inc.... 256,387
------------
Tobacco & Tobacco Products (1.7%):
65,000 Philip Morris Cos., Inc.... 2,933,125
11,340 RJR Nabisco Holdings
Corp..................... 372,094
------------
3,305,219
------------
Tools & Hardware Manufacturing (0.7%):
30,700 Black & Decker Corp........ 1,293,237
------------
Utilities -- Electric (1.9%):
55,000 Houston Industries, Inc.... 1,151,563
29,900 Minnesota Power & Light.... 982,962
63,300 Peco Energy Company........ 1,487,550
------------
3,622,075
------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- --------------------------- ------------
COMMON STOCKS, CONTINUED
Utilities -- Telecommunications (3.7%):
55,900 A T & T Corp............... $ 2,057,819
57,000 SBC Communications, Inc.... 3,373,688
35,000 Sprint Corp................ 1,732,500
------------
7,164,007
------------
Total Common Stocks 171,267,157
------------
WARRANTS (0.0%):
Retail -- Specialty Store (0.0%):
2,617 Sound Advice Warrants
Warrant Expires
6-14-99.................. 0
------------
REPURCHASE AGREEMENTS (11.1%):
$21,425,250 Merrill Lynch, 5.78%*, Open
Repurchase Agreement,
(Collateralized by
23,475,000 U.S. Treasury
Strip's, 11/15/98, market
value -- $21,854,755).... 21,425,250
------------
Total Repurchase Agreements 21,425,250
------------
Total (Cost -- $140,431,352)(a) $192,692,407
------------
</TABLE>
- ---------
Percentages indicated are based on net assets of $193,317,487.
<TABLE>
<C> <S>
* Variable rate securities having liquidity sources through bank letters of credit or other credit and/or
liquidity agreements. The interest rate, which will change periodically, is based upon bank prime rates or an
index of market interest rates. The rate reflected on the Schedule of Portfolio Investments is the rate in
effect at July 31, 1997.
(a) Represents cost for financial reporting purposes and differs from cost basis for federal income tax purposes
by the amount of losses recognized for financial reporting in excess of federal income tax reporting of
$124,135. Cost for federal income tax purposes differs from value by net unrealized appreciation of securities
as follows:
Unrealized appreciation....... $53,785,930
Unrealized depreciation....... (1,649,010)
-----------
Net unrealized appreciation... $52,136,920
==========
</TABLE>
(b) Non-income producing security.
See notes to financial statements.
-54-
<PAGE> 56
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
COMMON STOCKS (97.4%):
Advertising (0.1%):
6,000 Interpublic Group Cos.,
Inc....................... $ 268,500
------------
Aerospace/Defense (1.7%):
47,200 Boeing Co................... 2,775,950
1,700 Lockheed Martin Corp........ 181,050
12,000 McDonnell Douglas Corp...... 918,000
1,500 Northrop Grumman Corp....... 172,687
20,400 Textron, Inc................ 1,429,275
8,800 TRW, Inc.................... 514,800
------------
5,991,762
------------
Agriculture & Livestock (0.1%):
5,800 Pioneer Hi-Bred
International, Inc........ 429,200
------------
Aircraft & Aircraft Parts (Aviation) (1.0%):
9,600 AlliedSignal, Inc........... 885,600
100 General Dynamics Corp....... 8,850
32,000 United Technologies Corp.... 2,706,000
------------
3,600,450
------------
Air Freight (0.1%):
5,500 Federal Express Corp.(b).... 355,094
------------
Airlines (0.3%):
1,300 AMR Corp.(b)................ 139,831
6,400 Delta Air Lines, Inc........ 568,800
100 Southwest Airlines Co....... 2,919
8,000 US Airways Group, Inc.(b)... 306,500
------------
1,018,050
------------
Aluminum (0.1%):
100 Alcan Aluminum Ltd.......... 3,919
4,100 Aluminum Co. of America..... 362,850
100 Reynolds Metals Co.......... 7,800
------------
374,569
------------
Apparel (0.1%):
5,100 Liz Claiborne, Inc.......... 244,162
------------
Automobiles/Trucks (1.8%):
48,800 Chrysler Corp............... 1,811,700
4,400 Echlin, Inc................. 163,075
65,600 Ford Motor Co............... 2,681,400
21,000 General Motors Corp......... 1,299,375
100 Navistar International
Corp.(b).................. 2,063
11,200 PACCAR, Inc................. 555,800
------------
6,513,413
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Automotive Parts (0.3%):
3,955 Autoliv, Inc................ $ 137,683
100 AutoZone, Inc.(b)........... 2,863
6,900 Dana Corp................... 313,519
5,400 Eaton Corp.................. 487,688
100 Genuine Parts Co............ 3,262
------------
945,015
------------
Banks (1.7%):
10,800 Bank of Boston Corp......... 917,325
43,000 BankAmerica Corp............ 3,246,500
12,800 First Union Corp............ 1,298,400
7,000 KeyCorp..................... 435,312
------------
5,897,537
------------
Banks -- Money Centers (5.1%):
27,400 Bank of New York Co.,
Inc....................... 1,330,612
5,700 Bankers Trust New York...... 576,769
13,800 Barnett Banks, Inc.......... 785,737
49,800 Chase Manhattan Corp........ 5,655,412
15,800 Citicorp.................... 2,144,850
100 Corestates Financial
Corp...................... 6,169
12,700 First Chicago NDB Corp...... 963,612
4,100 Golden West Financial Corp.,
Delaware.................. 344,912
10,800 J.P. Morgan & Co., Inc...... 1,251,450
23,400 MBNA Corp................... 1,053,000
2,400 National City Corp.......... 142,800
16,800 NationsBank Corp............ 1,195,950
12,000 Norwest Corp................ 756,750
100 PNC Financial Corp.......... 4,575
4,000 Republic New York Corp...... 462,000
15,800 SunTrust Banks, Inc......... 1,014,162
8,820 Washington Mutual, Inc...... 609,682
------------
18,298,442
------------
Banks -- Outside Money Center (0.9%):
23,100 Banc One Corp............... 1,296,488
7,050 Fifth Third Bancorp......... 445,472
6,400 First Bank Systems, Inc..... 569,600
2,500 Fleet Financial Group,
Inc....................... 169,687
7,400 Mellon Bank Corp............ 373,237
7,200 U.S. Bancorp................ 480,600
100 Wachovia Corp............... 6,450
100 Wells Fargo & Co............ 27,494
------------
3,369,028
------------
</TABLE>
Continued
-55-
<PAGE> 57
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Beverages (2.9%):
15,100 Anheuser-Busch Cos., Inc.... $ 648,356
4,900 Brown-Forman Corp., Class
B......................... 238,875
117,700 Coca-Cola Co................ 8,150,725
2,700 Coors Adolph Co., Class B... 84,966
29,500 PepsiCo, Inc................ 1,130,219
100 Seagram Co., Ltd............ 3,831
------------
10,256,972
------------
Brokerage Firms & Security Dealers (0.7%):
8,400 Charles Schwab Corp......... 393,225
24,000 Merrill Lynch & Co., Inc.... 1,690,500
7,800 Salomon, Inc................ 494,812
------------
2,578,537
------------
Building Materials (0.1%):
100 Masco Corp.................. 4,688
3,700 Owens Corning............... 155,631
------------
160,319
------------
Chemicals -- General (3.0%):
7,900 Air Products & Chemicals,
Inc....................... 696,681
17,100 Dow Chemical Co............. 1,624,500
52,400 E.I. Du Pont De Nemours
Co........................ 3,507,525
2,600 FMC Corp.(b)................ 222,950
7,300 Hercules, Inc............... 387,813
41,600 Monsanto Co................. 2,072,200
11,600 Morton International,
Inc....................... 387,875
4,800 Nalco Chemical Co........... 195,900
11,500 Praxair, Inc................ 633,937
9,000 Rohm & Haas Co.............. 882,000
2,700 Sigma Aldrich Corp.......... 93,488
100 W.R. Grace & Co............. 6,150
------------
10,711,019
------------
Chemicals -- Specialty (0.7%):
14,200 Avery Dennison Corp......... 626,575
5,400 Eastman Chemical Co......... 326,700
4,700 Ecolab, Inc................. 219,431
10,000 Engelhard Corp.............. 215,000
4,200 Great Lakes Chemical
Corp...................... 210,263
13,400 PPG Industries, Inc......... 857,600
100 Union Carbide Corp.......... 5,537
------------
2,461,106
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Coal (0.0%):
600 Nacco Industries, Inc.,
Class A................... $ 41,625
------------
Computers (1.0%):
27,800 Dell Computer Corp.(b)...... 2,376,900
30,200 Seagate Technology,
Inc.(b)................... 1,240,088
600 3Com Corp.(b)............... 32,812
------------
3,649,800
------------
Computers & Peripherals (2.9%):
100 Amdahl Corp.(b)............. 1,181
100 Apple Computer, Inc.(b)..... 1,750
6,700 Cabletron Systems,
Inc.(b)................... 226,963
5,100 Ceridian Corp.(b)........... 223,125
100 Cisco Systems, Inc.(b)...... 7,956
5,600 Data General Corp.(b)....... 169,050
100 Digital Equipment
Corp.(b).................. 4,119
5,300 EMC Corp.(b)................ 267,650
48,900 Hewlett Packard Co.......... 3,426,056
56,200 I.B.M. Corp................. 5,943,150
100 Silicon Graphics, Inc.(b)... 2,500
100 Tandem Computers, Inc.(b)... 2,937
100 Unisys Corp.(b)............. 963
------------
10,277,400
------------
Construction (0.1%):
2,200 Centex Corp................. 122,650
2,900 Foster Wheeler Corp......... 128,687
100 Pulte Corp.................. 4,081
------------
255,418
------------
Consumer Credit (0.6%):
40,670 Morgan Stanley, Dean Witter,
Discover & Co............. 2,127,549
------------
Consumer Goods (0.1%):
5,200 American Greetings Corp..... 174,200
2,700 Jostens, Inc................ 69,694
------------
243,894
------------
Consumer Services (0.1%):
7,200 CUC International,
Inc.(b)................... 177,300
------------
</TABLE>
Continued
-56-
<PAGE> 58
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Container -- Metal, Glass, Paper, Plastic (0.4%):
100 Ball Corp................... $ 2,975
7,400 Bemis Co., Inc.............. 339,938
7,400 Crown Cork & Seal, Inc...... 374,162
11,000 Newell Co................... 461,313
10,300 Rubbermaid, Inc............. 268,444
100 Stone Container Corp........ 1,662
------------
1,448,494
------------
Cosmetics & Related (1.1%):
200 Alberto Culver Co., Class
B......................... 5,613
9,500 Avon Products, Inc.......... 689,344
29,200 Gillette Co................. 2,890,800
7,700 International Flavors &
Fragrances, Inc........... 408,581
------------
3,994,338
------------
Developers -- Real Estate (0.2%):
28,000 Entergy Corp................ 764,750
100 Kaufman & Broad Home
Corp...................... 2,138
------------
766,888
------------
Diversified -- Conglomerates (0.8%):
3,800 Aeroquip-Vickers, Inc....... 208,288
8,700 Cognizant Corp.............. 370,838
24,200 Corning Glass Works......... 1,495,862
14,800 Micron Technology, Inc...... 720,575
100 Minnesota Mining &
Manufacturing Co.......... 9,475
100 National Service Industries,
Inc....................... 4,931
100 Tenneco, Inc................ 4,663
7,100 Whitman Corp................ 179,275
------------
2,993,907
------------
Electrical Equipment (3.3%):
31,700 Emerson Electric Co......... 1,870,300
122,000 General Electric Co......... 8,562,875
9,100 Honeywell, Inc.............. 679,656
3,000 Thomas & Betts Corp......... 171,375
3,800 WW Grainger, Inc............ 364,800
100 Westinghouse Electric
Corp...................... 2,406
------------
11,651,412
------------
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ---------------------------- ------------
COMMON STOCKS, CONTINUED:
Electrical Utility (0.2%):
15,500 Peco Energy Co.............. $ 364,250
7,100 Union Electric Co........... 273,350
------------
637,600
------------
Electric-Integrated (0.3%):
11,200 Cinergy Corp................ 376,600
11,379 Duke Energy Corp............ 576,773
------------
953,373
------------
Electronic Computing Equipment (1.2%):
73,250 Compaq Computer Corp.(b).... 4,184,406
------------
Electronic & Electrical -- General (1.9%):
15,600 AMP, Inc.................... 815,100
7,600 Cooper Industries........... 422,275
25 General Semiconductor,
Inc....................... 381
3,500 General Signal Corp......... 172,156
4,000 Harris Corp................. 347,500
20,400 Motorola, Inc............... 1,638,375
3,600 Raychem Corp................ 349,200
12,200 Raytheon Co................. 681,675
9,200 Rockwell International
Corp...................... 603,750
3,400 Scientific Atlanta, Inc..... 71,400
2,100 Tektronix, Inc.............. 129,675
13,200 Texas Instruments, Inc...... 1,518,000
------------
6,749,487
------------
Energy (0.1%):
16,900 Union Pacific Resources
Group, Inc................ 417,219
------------
Engineering, Industrial Construction (0.0%):
100 EG&G, Inc................... 2,050
100 Fluor Corp.................. 6,150
------------
8,200
------------
Entertainment (0.9%):
1,800 Harrah's Entertainment,
Inc.(b)................... 36,900
9,400 Hasbro, Inc................. 288,463
700 ITT Corp.(b)................ 44,756
2,600 King World Productions,
Inc....................... 104,975
34,300 The Walt Disney Co.......... 2,771,869
------------
3,246,963
------------
</TABLE>
Continued
-57-
<PAGE> 59
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Financial Services (2.9%):
9,800 American Express Co......... $ 820,750
27,700 Automatic Data Processing,
Inc....................... 1,371,150
3,900 Beneficial Corp............. 282,750
7,600 Comerica, Inc............... 574,750
4,600 Dun & Bradstreet Corp....... 124,200
24,400 Federal National Mortgage
Assoc..................... 1,154,425
1,700 First Data Corp............. 74,163
10,000 Green Tree Financial
Corp...................... 471,250
100 Household International,
Inc....................... 12,950
15,200 MGIC Investment Corp........ 798,950
13,200 Providian Financial......... 517,275
2,700 TransAmerica Corp........... 272,362
55,400 Travelers, Inc.............. 3,985,338
------------
10,460,313
------------
Food Distributors (0.6%):
17,600 Albertson's, Inc............ 652,300
100 Fleming Cos., Inc........... 1,594
100 Giant Food, Inc............. 3,356
2,600 Great Atlantic & Pacific Tea
Co., Inc.................. 71,338
18,200 Kroger Co.(b)............... 538,037
12,500 Sysco Corp.................. 466,406
10,400 Winn-Dixie Stores, Inc...... 380,900
------------
2,113,931
------------
Food Processing & Packaging (2.3%):
37,900 Archer-Daniels-Midland
Co........................ 852,750
46,700 Campbell Soup Co............ 2,422,563
15,400 ConAgra, Inc................ 1,082,812
14,300 CPC International, Inc...... 1,371,906
3,800 General Mills............... 262,675
10,800 Hershey Foods Corp.......... 596,700
100 H.J. Heinz Co............... 4,619
100 Kellogg Co.................. 9,187
100 Quaker Oats Co.............. 5,119
100 Ralston-Ralston Purina
Group..................... 9,025
33,300 Sara Lee Corp............... 1,458,956
1,700 Wrigley, William Jr., Co.... 130,794
------------
8,207,106
------------
Forest Products -- Lumber, Paper (0.9%):
100 Boise Cascade Corp.......... 3,706
100 Champion International
Corp...................... 6,200
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Forest Products -- Lumber, Paper, Continued:
100 Georgia Pacific Corp........ $ 9,444
6,700 IKON Office Solutions,
Inc....................... 195,556
100 International Paper Co...... 5,600
6,300 James River Corp............ 259,481
33,600 Kimberly-Clark Corp......... 1,703,100
100 Louisiana Pacific Corp...... 2,294
100 Mead Corp................... 7,200
2,100 Potlatch Corp............... 100,406
100 Temple Inland, Inc.......... 6,731
100 Union Camp Corp............. 5,856
600 Westvaco Corp............... 20,063
14,000 Weyerhauser Co.............. 871,500
100 Willamette Industries,
Inc....................... 7,619
------------
3,204,756
------------
Gold & Silver Mining (0.0%):
100 Echo Bay Mines, Ltd......... 500
100 Homestake Mining Co......... 1,381
100 Placer Dome, Inc............ 1,700
------------
3,581
------------
Health Care (1.2%):
5,000 Cardinal Health, Inc........ 311,250
11,100 Humana, Inc.(b)............. 270,563
50,900 Johnson & Johnson........... 3,171,706
8,100 United Healthcare Corp...... 461,700
------------
4,215,219
------------
Heavy Machinery (1.6%):
1,500 Baker Hughes, Inc........... 66,094
53,400 Caterpillar Tractor, Inc.... 2,990,400
18,000 Deere & Co.................. 1,023,750
3,500 Harnischfeger Industries,
Inc....................... 150,937
100 Ingersoll-Rand Co........... 6,806
100 Thermo Electron............. 3,419
16,700 Tyco Laboratories, Inc...... 1,352,700
------------
5,594,106
------------
Hospital & Nursing Equipment (0.3%):
16,000 Becton Dickinson & Co....... 858,000
4,100 C.R., Bard, Inc............. 154,263
------------
1,012,263
------------
</TABLE>
Continued
-58-
<PAGE> 60
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Hotels & Motels (0.4%):
7,400 HFS, Inc.................... $ 431,050
10,400 Hilton Hotels Corp.......... 326,950
8,600 Marriott International,
Inc....................... 591,250
------------
1,349,250
------------
Household Goods (0.1%):
2,900 Armstrong World Industries,
Inc....................... 214,056
7,200 Maytag Corp................. 210,150
100 Tupperware Corp............. 3,475
100 Whirlpool Corp.............. 5,000
------------
432,681
------------
Industrial Services (0.0%):
100 Dover Corp.................. 7,138
3,000 Millipore Corp.............. 132,562
------------
139,700
------------
Insurance -- Broker (0.0%):
200 Marsh & McLennan Cos.,
Inc....................... 15,488
------------
Insurance -- Fire, Marine, Casualty (0.1%):
8,700 SAFECO Corp................. 416,513
100 USF&G Corp.................. 2,456
------------
418,969
------------
Insurance -- Life (0.5%):
600 Aetna, Inc.................. 68,363
150 AON Corp.................... 8,400
12,700 Conseco, Inc................ 517,525
5,000 Jefferson Pilot Corp........ 355,312
8,100 Lincoln National Corp....... 575,100
4,800 Torchmark Corp.............. 382,200
------------
1,906,900
------------
Insurance -- Multi-Line (1.2%):
5,734 Aegon N.V................... 435,067
15,167 American General Corp....... 807,643
6,600 CIGNA Corp.................. 1,316,700
8,400 ITT Hartford Group, Inc..... 731,850
8,200 Loews Corp.................. 886,625
------------
4,177,885
------------
Insurance -- Property, Casualty, Health & Other (1.8%):
25,400 Allstate Corp............... 2,006,600
25,350 American International
Group, Inc................ 2,699,775
12,300 Chubb Corp.................. 867,150
100 General Reinsurance Corp.... 20,888
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Insurance -- Property, Casualty, Health & Other,
Continued:
3,100 MBIA, Inc................... $ 365,800
5,900 St. Paul Cos., Inc.......... 462,781
200 UNUM Corp................... 8,900
------------
6,431,894
------------
Leisure -- Recreation, Gaming (0.2%):
13,800 Brunswick Corp.............. 445,050
2,800 Caliber System, Inc......... 109,025
------------
554,075
------------
Loan Companies (0.4%):
36,100 Federal Home Loan Mortgage
Corp...................... 1,301,856
------------
Machine Tools (0.2%):
5,200 Case Corp................... 324,675
2,800 Cincinnati Milacron, Inc.... 78,400
6,600 Cyprus Amax Minerals Co..... 167,475
2,400 Giddings & Lewis, Inc....... 50,400
------------
620,950
------------
Machinery (0.4%):
14,000 Applied Materials(b)........ 1,286,250
------------
Manufacturing -- Capital Goods (0.5%):
2,000 Briggs & Stratton Corp...... 101,375
3,300 Crane Co.................... 149,944
5,700 Cummins Engine, Inc......... 447,450
14,800 Illinois Tool Works, Inc.... 767,750
8,000 Pall Corp................... 201,000
100 Parker-Hannifin Corp........ 6,437
------------
1,673,956
------------
Manufacturing -- Miscellaneous (0.1%):
7,900 ITT Industries, Inc......... 223,669
------------
Medical Services (0.8%):
100 Baxter International,
Inc....................... 5,781
7,100 Beverly Enterprises,
Inc.(b)................... 109,163
10,500 Boston Scientific
Corp.(b).................. 753,375
38,800 Columbia/HCA Healthcare
Corp...................... 1,251,300
100 HEALTHSOUTH Corp............ 2,650
4,500 Manor Care, Inc............. 148,500
100 Shared Medical Systems
Corp...................... 5,400
17,500 Tenet Healthcare Corp.(b)... 523,906
------------
2,800,075
------------
</TABLE>
Continued
-59-
<PAGE> 61
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Medical Supplies (0.5%):
2,700 Bausch & Lomb, Inc.......... $ 114,919
8,300 Biomet, Inc................. 165,481
100 Guidant Corp................ 9,125
5,300 Mallinckrodt, Inc........... 185,500
14,100 Medtronic, Inc.............. 1,230,225
5,800 St. Jude Medical, Inc.(b)... 236,713
100 U.S. Surgical Corp.......... 3,712
------------
1,945,675
------------
Metals -- Fabrication (0.2%):
6,200 Asarco, Inc................. 210,800
100 Barrick Gold Corp........... 2,281
100 Battle Mountain Gold Co..... 556
100 Freeport McMoran Copper &
Gold, Inc................. 2,925
5,000 Harcourt General, Inc....... 235,625
100 Inco, Ltd................... 3,094
4,500 Phelps Dodge Corp........... 382,781
------------
838,062
------------
Metal & Mineral Production (0.1%):
11,142 Newmont Mining Corp......... 459,608
------------
Mobile Homes & Manufactured Housing (0.0%):
100 Fleetwood Enterprises,
Inc....................... 3,244
------------
Newspapers (0.9%)
100 Dow Jones & Co., Inc........ 4,319
19,500 Gannett Co., Inc............ 1,936,594
8,200 Knight-Ridder, Inc.......... 407,437
6,900 New York Times Co., Class
A......................... 346,725
6,700 Times Mirror Co., Class A... 365,988
1,200 Tribune Co.................. 63,525
------------
3,124,588
------------
Office Equipment & Supplies (0.4%)
7,100 Moore & Associates, Ltd..... 153,981
16,300 Pitney Bowes, Inc........... 1,224,538
100 Xerox Corp.................. 8,225
------------
1,386,744
------------
Oil & Gas Exploration, Production, & Services (0.8%):
100 Amerada Hess Corp........... 5,881
1,300 Ashland, Inc................ 69,063
8,600 Burlington Resources,
Inc....................... 406,350
1,400 Eastern Enterprises......... 50,137
17,800 Enron Corp.................. 675,288
500 Enserch Corp................ 11,125
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Oil & Gas Exploration, Production, & Services, Continued:
1,800 Helmerich & Payne, Inc...... $ 121,162
3,400 Kerr-McGee Corp............. 212,925
100 Louisiana Land & Exploration
Co........................ 7,063
44 Montery Resources, Inc...... 671
100 NorAm Energy Corp........... 1,600
2,400 Peoples Energy Corp......... 92,100
18,200 Phillips Petroleum Co....... 838,338
5,800 Rowan Cos., Inc.(b)......... 190,675
100 Santa Fe Energy Resources... 862
100 Sun Co., Inc................ 3,581
------------
2,686,821
------------
Oil -- Integrated Companies (6.4%):
27,200 Amoco Corp.................. 2,556,800
22,400 Atlantic Richfield Co....... 1,675,800
43,300 Chevron Corp................ 3,426,113
84,700 Exxon Corp.................. 5,441,975
200 Mobil Corp.................. 15,300
23,000 Occidental Petroleum
Corp...................... 576,437
1,900 Oneok, Inc.................. 66,500
14,800 Oryx Energy Co.(b).......... 365,375
6,400 Pennzoil Co................. 500,000
83,600 Royal Dutch Petroleum Co.... 4,676,375
10,500 Texaco, Inc................. 1,218,656
40,600 USX -- Marathon Group....... 1,306,813
25,800 Unocal Corp................. 1,032,000
------------
22,858,144
------------
Oilfield Equipment & Services (1.6%):
15,700 Dresser Industries, Inc..... 655,475
34,000 Halliburton Co.............. 1,564,000
100 McDermott International,
Inc....................... 3,056
34,400 Schlumberger Ltd............ 2,627,300
3,700 Western Atlas, Inc.(b)...... 294,381
11,300 Williams Cos., Inc.......... 516,975
------------
5,661,187
------------
Paint, Varnishes, Enamels (0.0%):
100 Sherwin Williams Co......... 3,206
------------
Pharmaceuticals (7.7%):
52,600 Abbott Laboratories......... 3,442,013
4,800 Allergan, Inc............... 153,300
100 Alza Corp., Class A(b)...... 3,231
40,500 American Home Products
Corp...................... 3,338,718
</TABLE>
Continued
-60-
<PAGE> 62
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Pharmaceuticals, Continued:
100 Amgen, Inc.(b).............. $ 5,881
34,100 Bristol-Myers Squibb Co..... 2,674,719
24,200 Eli Lilly & Co.............. 2,734,600
55,700 Merck & Co., Inc............ 5,789,319
51,200 Pfizer, Inc................. 3,052,800
20,900 Pharmacia & Upjohn, Inc..... 788,975
47,400 Schering-Plough............. 2,586,263
19,000 Warner-Lambert Co........... 2,654,062
------------
27,223,881
------------
Photography (0.2%):
9,700 Eastman Kodak Co............ 649,900
3,200 Polaroid Corp............... 190,400
------------
840,300
------------
Pollution Control Services & Equipment (0.0%):
100 Browning-Ferris Industries,
Inc....................... 3,700
4,100 Safety Kleen Corp........... 72,006
100 Waste Management, Inc....... 3,200
------------
78,906
------------
Precision Instruments & Related (0.1%):
100 Johnson Controls, Inc....... 4,481
3,100 Perkin-Elmer Corp........... 253,038
------------
257,519
------------
Printing (0.0%):
2,300 John H. Harland Co.......... 45,138
3,900 Meredith Corp............... 107,981
------------
153,119
------------
Publishing, Except Newspaper (0.3%):
5,700 Deluxe Corp................. 189,881
7,100 McGraw Hill, Inc............ 481,469
10,600 R.R. Donnelley & Sons Co.... 425,987
100 Time Warner, Inc............ 5,456
------------
1,102,793
------------
Radio & Television (0.0%):
100 Comcast Corp., Special Class
A......................... 2,269
100 Tele-Communications, Class
A(b)...................... 1,713
100 U.S. West Media Group(b).... 2,206
100 Viacom, Inc., Class B(b).... 3,087
------------
9,275
------------
Railroad & Railroad Holding Companies (0.3%):
4,200 Norfolk & Southern Co....... 465,150
10,200 Union Pacific Corp.......... 731,213
------------
1,196,363
------------
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ---------------------------- ------------
COMMON STOCKS, CONTINUED:
Restaurants (0.6%):
11,300 Darden Restaurants, Inc..... $ 108,056
33,500 McDonald's Corp............. 1,800,625
9,200 Wendy's International ,
Inc....................... 224,825
------------
2,133,506
------------
Retail (2.5%):
21,000 American Stores Co.......... 530,250
16,100 Costco Cos., Inc. (b)....... 609,788
30,800 Dayton Hudson Corp.......... 1,990,450
100 K-Mart Corp................. 1,187
100 Nordstrom, Inc.............. 5,669
29,400 Sears & Roebuck Co.......... 1,861,388
8,200 Tandy Corp.................. 487,387
17,500 Walgreen Co................. 988,750
58,000 Wal-Mart Stores, Inc........ 2,178,625
11,500 Woolworth Corp.(b).......... 325,594
------------
8,979,088
------------
Retail -- Department Stores (0.6%):
400 Dillard Department Stores,
Inc....................... 15,125
3,800 Federated Department
Stores(b)................. 166,488
2,700 Fortune Brands, Inc......... 95,681
17,300 J. C.Penney Co.............. 1,012,050
11,800 May Department Stores....... 659,325
1,800 Mercantile Stores, Inc...... 120,938
------------
2,069,607
------------
Retail -- Drug Stores (0.2%):
100 CVS Corp.................... 5,687
2,900 Longs Drug Stores Corp...... 78,119
14,400 Rite Aid.................... 747,900
------------
831,706
------------
Retail -- Specialty Stores (1.2%):
100 Charming Shoppes, Inc.(b)... 588
100 Circuit City Stores, Inc.... 3,625
34,500 Home Depot, Inc............. 1,720,687
15,400 Lowe's Cos., Inc............ 579,425
8,600 Pep Boys Manny, Moe &
Jack...................... 285,950
4,800 Super Value, Inc............ 194,400
27,200 The Gap, Inc................ 1,208,700
</TABLE>
Continued
-61-
<PAGE> 63
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Retail -- Specialty Stores, Continued:
3,400 The Limited, Inc............ $ 75,863
11,000 TJX Cos., Inc............... 328,625
100 Toys "R" Us, Inc.(b)........ 3,406
------------
4,401,269
------------
Rubber & Rubber Products (0.3%):
3,700 B.F. Goodrich, Inc.......... 167,194
100 Cooper Tire & Rubber Co..... 2,494
14,600 Goodyear Tire & Rubber
Co........................ 942,612
------------
1,112,300
------------
Savings & Loan Companies (0.1%):
7,500 H F Ahmanson & Co........... 398,906
------------
Semiconductors (2.6%):
10,000 Advanced Micro Devices,
Inc.(b)................... 350,625
94,200 Intel Corp.................. 8,648,738
800 LSI Logic Corp.(b).......... 25,250
4,500 National Semiconductor
Corp.(b).................. 141,750
------------
9,166,363
------------
Services (Non-Financial) (0.2%):
15,100 Service Corp.
International............. 513,400
------------
Shoes, Leather Goods, Clothing Accessories (0.6%):
28,700 Nike, Inc., Class B......... 1,788,369
4,200 Reebok International,
Ltd....................... 216,825
3,600 Stride Rite Corp............ 48,825
------------
2,054,019
------------
Soaps & Cleaning Agents (2.2%):
3,500 Clorox Co................... 488,688
10,000 Colgate-Palmolive Co........ 757,500
35,200 Procter & Gamble Co......... 5,354,800
6,000 Unilever N. V............... 1,308,000
------------
7,908,988
------------
Software & Computer Services (2.9%):
3,400 Adobe Systems, Inc.......... 127,075
100 Autodesk, Inc............... 4,238
100 Bay Networks, Inc.(b)....... 3,050
11,100 Computer Assoc.
International, Inc........ 755,494
3,900 Computer Sciences
Corp.(b).................. 317,606
100 Intergraph Corp.(b)......... 962
44,600 Microsoft Corp.(b).......... 6,310,900
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Software & Computer Services, Continued:
34 Netscape Communication
Corp.(b).................. $ 1,247
100 NextLevel Systems,
Inc.(b)................... 1,994
7,100 Novell, Inc.(b)............. 53,805
27,000 Oracle Corp.(b)............. 1,469,812
100 Parametric Technology
Co.(b).................... 4,900
27,200 Sun Microsystems, Inc.(b)... 1,242,700
------------
10,293,783
------------
Steel (0.4%):
24,900 Allegheny Teledyne, Inc..... 775,013
100 Armco, Inc.(b).............. 544
100 Bethlehem Steel Corp.(b).... 1,125
3,400 Inland Steel Industries..... 77,987
100 Nucor Corp.................. 6,206
8,800 Timken Co................... 309,650
5,900 USX-U. S. Steel Group....... 215,719
6,500 Worthington Industries,
Inc....................... 128,781
------------
1,515,025
------------
Tax Return Preparation (0.1%):
7,400 H & R Block................. 283,513
------------
Telecommunications (2.2%):
100 Airtouch Communications,
Inc. (b).................. 3,294
13,500 Alltel Corp................. 443,812
12,000 Andrew Corp.(b)............. 312,750
33 CommScope, Inc.(b).......... 533
400 DSC Communications
Corp.(b).................. 11,800
45,300 Lucent Technologies, Inc.... 3,847,669
17,400 Northern Telecom Ltd........ 1,819,388
13,300 Tellabs, Inc.(b)............ 796,337
15,200 WorldCom, Inc.(b)........... 531,050
------------
7,766,633
------------
Textile Manufacturing (0.2%):
5,400 Fruit of the Loom,
Inc.(b)................... 147,825
2,700 Russell Corp................ 78,806
1,400 Springs Industries, Inc..... 67,725
4,200 VF Corp..................... 376,950
------------
671,306
------------
</TABLE>
Continued
-62-
<PAGE> 64
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Tobacco & Tobacco Products (1.6%):
2,700 Gallaher Group PLC(b)....... $ 48,431
118,400 Philip Morris Cos., Inc..... 5,342,800
13,100 UST, Inc.................... 380,719
------------
5,771,950
------------
Tools & Hardware Manufacturing (0.1%):
100 Black & Decker Corp......... 4,213
4,300 Snap-On, Inc................ 177,375
6,100 Stanley Works............... 276,406
------------
457,994
------------
Toys & Bicycles -- Manufacturing (0.2%):
20,300 Mattel, Inc................. 705,425
------------
Transportation Leasing & Trucking (0.4%):
2,700 Burlington Northern Santa
Fe........................ 260,719
18,200 CSX Corp.................... 1,123,850
2,000 Ryder Systems, Inc.......... 71,625
------------
1,456,194
------------
Transportation Services (0.1%):
24,000 Laidlaw, Inc., Class B...... 382,500
------------
Utilities -- Electric (1.3%):
12,900 American Electric Power
Co........................ 577,275
10,800 Carolina Power & Light
Co........................ 384,750
14,700 Central & South West
Corp...................... 294,918
8,600 Dominion Resources, Inc..... 316,050
400 DTE Energy Co............... 11,975
30,400 Edison International........ 767,600
100 FPL Group, Inc.............. 4,788
17,000 General Public Utilities
Corp...................... 589,687
100 Houston Industries, Inc..... 2,094
20,200 Niagara Mohawk Power
Corp...................... 188,113
100 Northern States Power Co.... 5,137
10,600 Ohio Edison................. 235,850
4,000 PacifiCorp.................. 89,250
8,900 P.P. & L. Resources, Inc.... 181,894
16,700 Public Service Enterprise
Group, Inc................ 413,325
6,500 Southern Co................. 142,594
100 Texas Utilities Co.......... 3,544
15,100 Unicom Corp................. 342,581
------------
4,551,425
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ---------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Utilities -- Electric & Gas (0.4%):
10,700 Baltimore Gas & Electric.... $ 297,594
32,100 Consolidated Edison......... 1,015,163
600 Pacific Gas & Electric
Co........................ 14,887
------------
1,327,644
------------
Utilities -- Natural Gas (0.2%):
700 Coastal Corp................ 38,063
3,900 Columbia Gas Systems,
Inc....................... 268,125
2,800 Consolidated Natural Gas.... 162,050
3,500 Nicor, Inc.................. 128,187
900 Pacific Enterprises......... 30,094
100 Sonat, Inc.................. 4,987
------------
631,506
------------
Utilities -- Telecommunications (4.3%):
56,300 AT&T Corp................... 2,072,544
50,400 Ameritech Corp.............. 3,398,850
100 Bell Atlantic Corp.......... 7,256
57,300 Bellsouth Corp.............. 2,714,588
100 Frontier Corp............... 2,062
12,300 GTE Corp.................... 571,950
20,200 MCI Telecommunications
Corp...................... 713,312
27,200 Nynex Corp.................. 1,507,900
49,700 SBC Communications, Inc..... 2,941,619
26,000 Sprint Corp................. 1,287,000
1,500 U.S. West, Inc.............. 54,844
------------
15,271,925
------------
Total Common Stocks 345,928,731
------------
INVESTMENT COMPANIES (1.3%):
153,596 SEI Index S&P 500 Fund...... 4,640,146
------------
Total Investment Companies 4,640,146
------------
Total Investments, at value 350,568,877
------------
REPURCHASE AGREEMENTS (1.2%):
4,282,295 Merrill Lynch, 5.78%*, Open
Repurchase Agreement
(Collateralized by
4,695,000 U.S. Treasury
Strip's, 11/15/98, market
value -- 4,370,951)....... 4,282,295
------------
Total Repurchase Agreements 4,282,295
------------
Total (Cost -- $232,524,138)(a) $354,851,172
===========
</TABLE>
Continued
-63-
<PAGE> 65
QUALIVEST FUNDS
OPTIMIZED STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
- ---------
Percentages are based on net assets of $355,085,549.
<TABLE>
<C> <S>
* Variable rate securities having liquidity sources through bank letters of credit or other credit and/or
liquidity agreements. The interest rate, which will change periodically, is based upon bank prime rates or an
index of market interest rates. The rate reflected on the Schedule of Portfolio Investments is the rate in
effect at July 31, 1997.
(a) Represents cost for financial reporting purposes and differs from cost basis for federal income tax purposes by
the amount of losses recognized for financial reporting in excess of federal income tax reporting of $51,350.
Cost for federal income tax purposes differs from value by net unrealized appreciation of securities as
follows:
Unrealized appreciation... $123,665,910
Unrealized depreciation... (1,390,226)
------------
Net unrealized
appreciation............ $122,275,684
============
(b) Non-income producing security.
</TABLE>
See notes to financial statements.
-64-
<PAGE> 66
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS (98.9%):
AUSTRALIA (2.8%):
Banking (0.6%):
52,606 National Australia Bank,
Ltd. ...................... $ 765,867
64,467 Westpac Banking Corp.,
Ltd. ...................... 419,944
------------
1,185,811
------------
Beverages (0.2%):
28,025 Coca-Cola Amatil, Ltd. ...... 340,351
84,722 Foster's Brewing Group,
Ltd. ...................... 165,888
------------
506,239
------------
Building Materials (0.2%):
41,227 Boral, Ltd. ................. 128,703
67,092 Pioneer International,
Ltd. ...................... 243,441
------------
372,144
------------
Business & Public Services (0.1%):
10,292 Brambles Industries, Ltd. ... 213,176
------------
Chemicals (0.1%):
20,607 ICI Australia, Ltd. ......... 207,273
------------
Containers -- Paper/Plastic (0.1%):
18,082 Amcor, Ltd. ................. 116,805
------------
Diversified (0.4%):
56,347 Broken Hill Proprietary Co.,
Ltd. ...................... 765,754
26,547 CSR, Ltd. ................... 103,841
34,457 Pacific Dunlop, Ltd. ........ 94,989
35,573 Southcorp Holdings, Ltd. .... 128,810
------------
1,093,394
------------
Food Processing & Packaging (0.1%):
15,097 Burns, Philp & Co., Ltd. .... 28,121
134,836 Goodman Fielder, Ltd. ....... 207,252
------------
235,373
------------
Merchandising (0.1%):
43,217 Coles Myer, Ltd. ............ 222,820
------------
Metals -- Non Ferrous (0.3%):
43,153 M.I.M. Holdings, Ltd. ....... 59,802
79,243 Newcrest Mining, Ltd. ....... 162,363
50,222 North, Ltd. ................. 183,351
33,633 WMC, Ltd. ................... 195,107
------------
600,623
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Australia, Continued:
Metals -- Steel (0.1%):
12,347 Rio Tinto, Ltd. ............. $ 192,054
------------
Oil & Gas Exploration, Production & Services (0.1%):
38,125 Santos, Ltd. ................ 183,216
------------
Publishing & Broadcasting (0.2%):
68,893 News Corp., Ltd. ............ 316,704
25,297 News Corp., Ltd.,
Preferred.................. 190,892
------------
507,596
------------
Real Estate (0.2%):
8,459 Lend Lease Corp., Ltd. ...... 192,100
93,856 Westfield Trust.............. 196,499
3,822 Westfield 1 New Units........ 7,774
------------
396,373
------------
Total Australia 6,032,897
------------
AUSTRIA (0.3%):
Banking (0.1%):
1,386 Bank Austria AG.............. 68,633
674 Creditanstalt-Bankverein..... 47,612
------------
116,245
------------
Beverages (0.0%):
1,785 Oesterreichische
Brau-Beteiligungs AG....... 112,008
------------
Building Materials (0.0%):
256 Weinerberger
Baustoffindustrie AG....... 52,727
------------
Engineering & Construction (0.1%):
539 VA Technologie AG............ 112,747
------------
Insurance -- Multi-line (0.1%):
586 EA-Generali AG............... 158,691
------------
Oil Companies -- Integrated (0.0%):
340 OMV AG....................... 47,089
------------
Transportation -- Airlines (0.0%):
1,410 Austrian Airlines
Oesterreichische
Luftverskehrs AG (b)....... 35,892
------------
Transportation -- Misc. (0.0%):
772 Flughafen Wien AG............ 33,510
------------
</TABLE>
Continued
-65-
<PAGE> 67
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Austria, Continued:
Utilities -- Electric (0.0%):
367 Oesterrichische
Elektrizitaetswirstchafts,
AG, Class A................ $ 25,045
------------
Total Austria 693,954
------------
BELGIUM (1.1%):
Banking (0.2%):
638 Generale de Banque SA........ 247,799
335 Kredietbank NV............... 142,485
------------
390,284
------------
Building Materials (0.1%):
1,285 Cimenteries CBR
Cementbedrijven............ 122,189
------------
Chemicals (0.1%):
799 Gevaert NV................... 76,608
262 Solvay SA.................... 163,094
------------
239,702
------------
Diversified (0.2%):
641 Group Bruxelles Lambert SA... 100,600
624 Tractebel.................... 244,830
------------
345,430
------------
Industrial Goods & Services (0.0%):
87 Bekaert NV................... 62,246
------------
Insurance -- Property, Casualty, Health & Other (0.2%):
1,132 Fortis AG.................... 242,751
20 Fortis AG, Strip VVPR (b).... 3
584 Royale Belge................. 177,147
------------
419,901
------------
Metals -- Non Ferrous (0.0%):
1,128 Union Miniere SA (b)......... 100,566
------------
Oil Companies -- Integrated (0.1%):
762 PetroFina SA (b)............. 301,488
------------
Retail (0.0%):
1,220 Delhaize-Le Lion SA.......... 63,072
------------
Utilities -- Electric & Gas (0.2%):
1,624 Electrabel SA................ 343,545
300 Electrabel SA, Strip VVPR
(b)........................ 135
------------
343,680
------------
Total Belgium 2,388,558
------------
BRITAIN (18.5%):
Aerospace/Defense (0.2%):
12,447 British Aerospace PLC........ 271,793
41,604 Rolls-Royce PLC.............. 159,757
------------
431,550
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Britain, Continued:
Automotive Parts (0.3%):
17,921 BBA Group PLC................ $ 99,775
14,861 GKN PLC...................... 260,870
52,989 LucasVarsity PLC............. 163,127
30,789 T & N PLC.................... 71,844
------------
595,616
------------
Banking (2.2%):
41,383 Abbey National PLC........... 567,529
43,526 Barclays PLC................. 916,225
54,711 HSBC Holdings PLC............ 1,910,939
24,924 HSBC Holdings PLC (75P)...... 900,132
29,783 Royal Bank of Scotland Group
PLC........................ 312,370
------------
4,607,195
------------
Beverages (0.6%):
27,185 Bass PLC..................... 371,259
68,937 Guinness PLC................. 660,373
17,126 Scottish & Newcastle PLC..... 204,159
------------
1,235,791
------------
Building Materials (0.4%):
24,518 Blue Circle Industries PLC... 166,214
17,071 BPB PLC...................... 93,785
15,595 Caradon PLC.................. 51,329
4,401 Caradon PLC, Class B......... 6,846
28,677 Pilkington PLC............... 61,985
27,599 Redland PLC.................. 128,123
6,560 RMC Group PLC................ 106,507
17,360 Williams PLC................. 92,956
12,805 Wolseley PLC................. 89,849
------------
797,594
------------
Chemicals (0.8%):
19,203 BOC Group PLC................ 352,969
13,327 Courtaulds PLC............... 68,088
16,714 English China Clays PLC...... 59,528
19,118 Imperial Chemical Industries
PLC........................ 315,405
26,608 Zeneca Group PLC............. 880,562
------------
1,676,552
------------
</TABLE>
Continued
-66-
<PAGE> 68
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Britain, Continued:
Diversified (1.0%):
132,810 BTR PLC...................... $ 412,118
12,546 Energy Group PLC............. 133,742
30,209 Granada Group PLC............ 414,783
70,292 Grand Metropolitan PLC....... 688,892
29,083 Hanson PLC................... 147,158
28,536 Harrisons & Crosfield PLC.... 49,064
30,742 LASMO PLC.................... 140,449
19,400 Lonrho PLC................... 38,280
------------
2,024,486
------------
Electrical & Electronic (0.3%):
22,257 Electrocomponents PLC........ 164,189
82,620 General Electric Co. PLC..... 477,575
13,747 Racal Electronic PLC......... 48,961
------------
690,725
------------
Financial Services (1.2%):
189,037 Lloyds TSB Group PLC......... 2,090,998
6,695 Mercury Asset Management
Group PLC.................. 152,825
10,461 Provident Financial PLC...... 101,665
6,463 Schroders PLC................ 193,143
------------
2,538,631
------------
Food & Household (0.7%):
30,765 Associated British Foods
PLC........................ 267,506
34,224 Cadbury Schweppes PLC........ 330,927
10,382 Tate & Lyle PLC.............. 70,042
9,402 Thorn PLC.................... 25,942
10,971 Thorn PLC, Class B (b)....... 3,683
27,559 Unilever PLC................. 798,312
14,913 United Biscuits (Holdings)
PLC........................ 50,305
------------
1,546,717
------------
Food -- Retail (0.6%):
40,025 Safeway PLC.................. 252,005
63,442 Sainsbury (J) PLC............ 442,556
70,277 Tesco PLC.................... 474,124
------------
1,168,685
------------
Forest Products (0.1%):
26,162 Arjo Wiggins Appleton PLC.... 69,829
16,437 Rexam PLC.................... 66,482
------------
136,311
------------
Health Care (1.8%):
112,565 Glaxo Wellcome PLC........... 2,380,560
84,062 SmithKline Beecham PLC....... 1,637,365
------------
4,017,925
------------
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
COMMON STOCKS, CONTINUED:
Britain, Continued:
Industrial Goods & Services (0.0%):
9,855 BICC Group................... $ 27,272
------------
Insurance -- Property, Casualty, Health & Other (0.8%):
17,556 Commercial Union PLC......... 197,355
34,490 Guardian Royal Exchange
PLC........................ 164,349
57,207 Legal & General Group PLC.... 405,619
56,052 Prudential Corp. PLC......... 536,025
57,951 Royal & Sun Alliance
Insurance Group PLC........ 476,372
54,652 Sedgwick Group PLC (b)....... 108,286
------------
1,888,006
------------
Leisure (0.3%):
28,260 EMI Group PLC................ 258,682
15,701 EMI Group PLC, Class B....... 29,567
32,996 Ladbroke Group PLC........... 132,646
36,254 Rank Organisation PLC........ 204,812
------------
625,707
------------
Manufacturing (0.1%):
11,909 IMI PLC...................... 66,986
10,467 Smiths Industries PLC........ 137,718
10,548 T I Group PLC................ 94,048
------------
298,752
------------
Metals -- Non Ferrous (0.3%):
14,497 Johnson Matthey PLC.......... 137,804
30,309 Rio Tinto PLC................ 490,602
------------
628,406
------------
Metals -- Steel (0.1%):
84,908 British Steel PLC............ 230,454
------------
Oil Companies -- Integrated (1.3%):
192,233 British Petroleum Co. PLC.... 2,626,852
6,361 Burmah Castrol PLC........... 109,734
------------
2,736,586
------------
Publishing & Broadcasting (1.0%):
84,749 British Sky Broadcasting
Group PLC.................. 643,923
23,200 Carlton Communications PLC... 184,821
6,301 De La Rue PLC................ 38,589
17,719 Pearson PLC.................. 197,591
</TABLE>
Continued
-67-
<PAGE> 69
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Britain, Continued:
44,118 Reed International PLC....... $ 442,129
53,423 Reuters Holdings PLC......... 575,619
------------
2,082,672
------------
Real Estate (0.4%):
10,107 Hammerson PLC................ 82,586
23,205 Land Securities PLC.......... 353,383
25,676 MEPC PLC..................... 205,808
26,150 Slough Estates PLC........... 137,668
------------
779,445
------------
Retail -- Catalog/Home Shopping (0.3%):
9,590 Argos PLC.................... 99,011
41,564 Great Universal Stores PLC... 427,423
11,029 Next PLC..................... 137,166
------------
663,600
------------
Retail -- Department Stores (0.5%):
24,753 Kingfisher PLC............... 291,838
78,911 Marks & Spencer PLC.......... 761,087
63,876 Sears PLC.................... 64,850
------------
1,117,775
------------
Retail -- Drug Store (0.2%):
27,573 Boots Co. PLC................ 349,467
------------
Telecommunications (1.2%):
206,570 British Telecommunication
PLC........................ 1,442,672
73,446 Cable & Wireless PLC......... 737,242
98,059 Vodafone Group PLC........... 493,758
------------
2,673,672
------------
Textile Manufacturing (0.0%):
22,869 Coats Viyella PLC............ 44,189
------------
Tobacco (0.4%):
99,655 B.A.T Industries PLC......... 842,035
------------
Transportation -- Airlines (0.2%):
37,540 British Airways PLC.......... 408,172
------------
Transportation -- Shipping (0.1%):
19,881 Peninsular & Oriental Steam
Navigation Co.............. 202,167
------------
Utilities -- Electric & Gas (1.0%):
144,404 BG PLC....................... 589,972
144,404 Centrica PLC (b)............. 211,042
13,321 London Electricity PLC....... 153,892
58,384 National Grid Group PLC...... 245,702
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
COMMON STOCKS, CONTINUED:
Britain, Continued:
38,056 National Power PLC........... $ 337,133
35,765 Scottish Power PLC........... 252,416
14,910 Southern Electric PLC........ 109,136
13,660 United Utilities PLC......... 157,808
------------
2,057,101
------------
Utilities -- Water & Sewage (0.1%):
6,437 Anglian Water PLC............ 84,483
9,079 Thames Water PLC............. 119,530
------------
204,013
Total Britain 39,327,269
------------
DENMARK (1.0%):
Banking (0.2%):
1,599 Den Danske Bank.............. 169,073
3,248 Unidanmark A/S............... 193,993
------------
363,066
------------
Beverages (0.1%):
862 Carlsberg A/S, Class A....... 44,957
736 Carlsberg A/S, Class B....... 38,385
------------
83,342
------------
Commercial Services (0.0%):
1,240 ISS International Service
System, Class B (b)........ 39,865
------------
Diversified (0.1%):
1,170 Sophus Berendensen A/S, Class
B.......................... 165,506
------------
Engineering (0.0%):
1,605 FLS Industries A/S, Class
B.......................... 59,627
------------
Food & Household (0.1%):
1,829 Danisco A/S.................. 100,877
------------
Health Care (0.2%):
3,911 Novo Nordisk A/S, Class B.... 412,418
------------
Medical Instruments (0.0%):
417 Radiometer A/S............... 21,450
------------
Telecommunications (0.1%):
4,386 Tele Danmark A/S, Class B.... 305,527
------------
Transportation -- Shipping (0.2%):
5 D/S 1912, Class B............ 215,759
4 D/S Svendborg, Class B....... 250,338
------------
466,097
------------
Total Denmark 2,017,775
------------
</TABLE>
Continued
-68-
<PAGE> 70
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
FINLAND (0.7%):
Banking (0.1%):
28,033 Merita, Ltd., Class A........ $ 117,754
------------
Diversified (0.0%):
2,600 Metra Oy, Class A............ 91,170
------------
Forest Products (0.1%):
8,340 UPM-Kymmene Corp............. 203,037
------------
Insurance -- Property, Casualty, Health & Other (0.0%):
500 Sampo Insurance Co. Ltd.,
Class A.................... 50,681
------------
Machinery (0.0%):
200 Kone Corp., Class B.......... 24,655
232 Rauma Oy..................... 5,118
------------
29,773
------------
Metals -- Non Ferrous (0.0%):
3,500 Outokumpu OY, Class A........ 66,478
------------
Retail -- Diversified (0.1%):
7,000 Kesko........................ 98,439
400 Stockmann AB, Class A........ 22,646
------------
121,085
------------
Telecommunication Equipment (0.4%):
6,100 Oy Nokia AB, Class A......... 528,620
3,400 Oy Nokia AB, Class K......... 291,847
------------
820,467
------------
Total Finland 1,500,445
FRANCE (6.6%):
Aerospace/Defense (0.1%)
3,217 Thomson CSF.................. 85,406
150 Sagem........................ 75,018
------------
160,424
------------
Automobiles (0.1%):
1,250 PSA Peugeot Citroen.......... 144,530
------------
Automotive Parts (0.1%):
1,778 Valeo SA..................... 111,978
------------
Banking (0.5%):
5,364 Banque Nationale de Paris.... 255,532
90,040 Compagnie de Suez............ 237,732
4,402 Compagnie Financiere de
Paribas.................... 316,333
2,559 Societe Generale............. 338,032
------------
1,147,629
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
France, Continued:
Beverages (0.4%):
2,950 LVMH (Louis Vuitton Moet
Hennessy).................. $ 757,450
3,048 Pernod Ricard................ 151,108
------------
908,558
------------
Building Materials (0.2%):
2,373 Compagnie de St. Gobain...... 340,287
2,963 Lafarge SA................... 208,666
------------
548,953
------------
Chemicals (0.4%):
2,570 L'Air Liquide................ 409,209
9,055 Rhone-Poulenc................ 381,649
------------
790,858
------------
Commercial Services (0.3%):
4,019 Compagnie Generale des
Eaux....................... 508,177
250 Sodexho Alliance............. 127,534
------------
635,711
------------
Construction & Housing (0.0%):
724 Bouygues..................... 61,848
------------
Cosmetic & Toiletries (0.5%):
2,375 L'OREAL...................... 958,823
------------
Diversified (0.3%):
5,628 Lagardere S.C.A.............. 167,863
3,280 Suez Lyonnaise des Eaux...... 358,060
1,000 Worms et Compagnie........... 56,940
------------
582,863
------------
Electrical & Electronic (0.4%):
5,070 Alcatel Alsthom.............. 662,356
872 Legrand SA................... 175,879
------------
838,235
------------
Energy (0.8%):
8,400 Elf Aquitaine SA............. 959,033
8,111 Total SA, Class B............ 814,704
------------
1,773,737
------------
Financial Services (0.1%):
777 Compagnie Bancaire SA........ 96,741
100 Societe Eurafrance SA........ 41,147
------------
137,888
------------
</TABLE>
Continued
-69-
<PAGE> 71
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
France, Continued:
Food & Household (0.9%):
1,350 Carrefour.................... $ 912,355
150 Comptoirs Modernes........... 72,669
650 Eridania Beghin-Say SA....... 92,475
1,550 Establissements Economoiques
du Casino
Guichard-Perrachon SA...... 73,214
2990 Groupe Danone................ 472,221
659 Promodes..................... 264,771
------------
1,887,705
------------
Furniture (0.0%):
1,050 Moulinex (b)................. 25,604
------------
Health Care (0.2%):
4,369 Sanofi....................... 459,301
------------
Insurance -- Property, Casualty, Health & Other (0.4%):
9,114 Axa-UAP...................... 596,219
7902 Union des Assurance de Paris
(b)........................ 210,295
------------
806,514
------------
Leisure (0.1%):
2,076 Accor SA..................... 312,448
------------
Machine Tools (0.1%):
4,413 Schneider SA................. 255,908
800 Sidel SA..................... 58,910
------------
314,818
------------
Manufacturing (0.1%):
1,500 Societe BIC SA............... 123,779
------------
Metals -- Steel (0.1%):
9,450 Usinor Sacilor............... 188,466
------------
Publishing & Broadcasting (0.2%):
961 Canal Plus................... 185,915
2,380 Havas........................ 165,226
200 Pathe........................ 39,661
------------
390,802
------------
Real Estate (0.1%):
2,550 SEFIMEG...................... 156,892
841 Simco SA..................... 63,423
250 Unibail...................... 22,810
------------
243,125
------------
Retail -- Department Stores (0.1%):
700 Pinault-Printemps-Redoute.... 317,643
------------
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
COMMON STOCKS, CONTINUED:
France, Continued:
Rubber -- Tires (0.1%):
3,273 Michelin..................... $ 203,859
------------
Textiles (0.0%):
200 Chargeurs International SA... 11,788
------------
Total France 14,087,887
------------
GERMANY (9.8%):
Automobiles (1.2%):
18,320 Daimler-Benz AG.............. 1,555,955
400 MAN AG....................... 121,736
750 Volkswagen AG................ 575,741
450 Volkswagen AG, Preferred..... 249,406
------------
2,502,838
------------
Banking (1.1%):
6,550 Bayerisvhe Hypotheken-und
Weschel-Bank AG............ 272,447
8,100 Bayerische Vereinsbank AG.... 445,403
14,150 Deutsche Bank AG............. 958,349
15,200 Dresdner Bank AG............. 698,446
------------
2,374,645
------------
Beverages (0.0%):
1,050 Brau Und Brunnen AG (b)...... 88,150
------------
Building Materials (0.1%):
3,355 Heidelberg Zement AG......... 284,034
------------
284,034
------------
Chemicals (0.7%):
17,500 BASF AG...................... 675,509
20,150 Bayer AG..................... 860,956
------------
1,536,465
------------
Computer Software (0.3%):
1,720 SAP AG....................... 405,474
1,210 SAP AG-Vorzug................ 294,469
------------
699,943
------------
Construction & Housing (0.1%):
1,200 Bilfinger & Berger Bau AG.... 47,889
3,500 Hochtief AG.................. 154,919
100 STRABAG (b).................. 8,085
------------
210,893
------------
Cosmetics & Toiletries (0.1%):
3,600 Beiersdorf AG................ 173,653
------------
</TABLE>
Continued
-70-
<PAGE> 72
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Germany, Continued:
Diversified (0.3%):
450 Preussag AG.................. $ 136,708
950 Viag AG...................... 410,409
------------
547,117
------------
Electrical & Electronic (0.6%):
16,870 Siemens...................... 1,177,011
------------
Forest Products (0.0%):
200 PWA-Papierwerke Waldhof-
Aschaffenburg AG........... 32,775
------------
Health Care (0.3%):
6,900 Merck KGaA................... 282,497
3,100 Schering AG.................. 343,964
------------
626,461
------------
Insurance -- Property, Casualty, Health & Other (1.9%):
6,500 Allianz AG................... 1,667,853
100 AMB Aachener & Muenchener
Beiteiligungs-AG........... 101,102
200 AMB Aachener & Muenchener
Beiteiligungs-AG
Registered................. 203,619
1,750 Axa Colonia Konzern AG....... 172,260
500 Muenchener Ruckversicherungs-
Gesellschaft AG............ 1,874,221
------------
4,019,055
------------
Machinery (0.4%):
880 AGIV-AG fuer Industrie und
Verkehrswesen (b).......... 19,020
3,400 Deutz AG (b)................. 28,636
250 Linde AG..................... 183,067
1,550 Mannesmann AG................ 724,046
------------
954,769
------------
Materials (0.2%):
5,750 Degussa AG................... 327,138
------------
Metals -- Steel (0.1%):
1,000 Thyssen AG................... 227,030
------------
Retail -- Department Stores (0.3%):
850 Karstadt AG.................. 328,567
6,384 Metro AG..................... 345,483
------------
674,050
------------
Rubber -- Tires (0.1%):
4,400 Continental AG............... 112,230
------------
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
COMMON STOCKS, CONTINUED:
Germany, Continued:
Shoes & Leather (0.1%):
1,900 Adidas AG.................... $ 223,436
------------
Telecommunications (0.8%):
69,850 Deutsche Telekom............. 1,654,255
------------
Transportation -- Airlines (0.2%):
19,700 Deutsche Lufthansa AG........ 398,984
------------
Utilities -- Electric & Gas (0.9%):
14,880 RWE AG....................... 661,869
10,800 RWE AG, Preferred Shares..... 387,486
13,782 VEBA AG...................... 800,239
------------
1,849,594
------------
Total Germany 20,694,526
------------
HOLLAND (5.6%):
Banking (0.8%):
71,194 ABN Amro Holding NV.......... 1,676,943
------------
Beverages (0.1%):
1,883 Heineken NV.................. 289,617
------------
Chemicals (0.2%):
2,766 Akzo Nobel NV................ 429,173
------------
Computer Software (0.1%):
3,211 Getronics NV................. 111,820
------------
Financial Services (0.6%):
27,121 ING Groep NV................. 1,322,245
------------
Food & Household (1.3%):
17,740 Koninklijke Ahold NV......... 513,956
12,724 Philips Electronics NV....... 1,033,901
5,198 Unilever NV.................. 1,143,914
------------
2,691,771
------------
Metals -- Steel (0.0%):
754 Koninklijke Hoogovens NV..... 45,768
------------
Oil Companies -- Integrated (1.8%):
66,424 Royal Dutch Petroleum Co..... 3,729,951
------------
Paper & Related Products (0.0%):
3,119 NV Konklijke KNP BT.......... 71,807
------------
Publishing & Broadcasting (0.4%):
23,457 Elsevier NV.................. 414,106
2,461 Wolters Kluwer NV............ 324,714
------------
738,820
------------
Telecommunications (0.3%):
14,086 Royal PTT Nederland NV....... 579,099
------------
</TABLE>
Continued
-71-
<PAGE> 73
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Holland, Continued:
Transportation -- Airlines (0.0%):
2,680 KLM Royal Dutch Air Lines
NV......................... $ 95,791
------------
Transportation -- Misc. (0.0%):
1,867 Koninklijke Pakhoed NV....... 67,725
------------
Total Holland 11,850,530
------------
HONG KONG (3.9%):
Banking (0.6%):
68,255 Bank of East Asia, Ltd....... 283,860
59,300 Hang Seng Bank, Ltd.......... 865,466
10,700 Wing Lung Bank............... 71,863
------------
1,221,189
------------
Hotels & Motels (0.1%):
51,000 Hong Kong & Shanghai Hotels,
Ltd........................ 69,163
19,000 Miramar Hotel & Investment,
Ltd........................ 38,527
------------
107,690
------------
Financial Services (0.1%):
53,000 Peregrine Investment
Holdings, Ltd.............. 117,055
------------
Diversified (0.8%):
124,000 Hutchison Whampoa, Ltd....... 1,209,165
48,000 Swire Pacific, Ltd., Class
A.......................... 455,665
------------
1,664,830
------------
Publishing & Broadcasting (0.1%):
80,000 South China Morning Post
Holdings, Ltd.............. 82,660
10,000 Television Broadcasts,
Ltd........................ 38,489
------------
121,149
------------
Real Estate (1.4%):
82,000 Cheung Kong Holdings, Ltd.... 910,813
104,296 Chinese Estates Holdings..... 99,008
63,000 Hang Lung Development........ 123,274
131,139 Hopewell Holdings, Ltd....... 80,030
25,000 Hysan Development Co.,
Ltd........................ 79,593
58,489 New World Development Co.,
Ltd........................ 421,149
38,000 Shangri-La Asia, Ltd......... 42,454
20,000 Sino Land Co., Ltd........... 20,923
75,000 Sun Hung Kai Properties,
Ltd........................ 942,037
71,000 Wharf Holdings, Ltd.......... 298,946
------------
3,018,227
------------
Telecommunications (0.4%):
391,239 Hong Kong Telecommunications,
Ltd........................ 1,018,202
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Hong Kong, Continued:
Transportation -- Airlines (0.1%):
120,000 Cathay Pacific Airways....... $ 234,807
------------
Transportation -- Marine (0.0%):
75,146 Shun Tak Holdings, Ltd....... 45,374
------------
Utilities -- Electric & Gas (0.3%):
75,000 China Light & Power Co.,
Ltd........................ 430,092
151,040 Hong Kong & China Gas Co.,
Ltd........................ 327,731
------------
757,823
------------
Total Hong Kong 8,306,346
------------
IRELAND (0.3%):
Banking (0.1%):
23,823 Allied Irish Banks PLC....... 220,250
------------
Building Materials (0.1%):
10,087 CRH PLC...................... 100,086
------------
Food & Household (0.1%):
10,642 Greencore Group PLC.......... 51,131
4,102 Kerry Group PLC.............. 39,955
35,771 Waterford Wedgewood PLC...... 46,612
------------
137,698
------------
Forest Products (0.0%):
29,615 Jefferson Smurfit Group
PLC........................ 89,685
------------
Insurance -- Life (0.0%):
8,272 Irish Life PLC............... 43,718
------------
Publishing -- Newspaper (0.0%):
9,254 Independent Newspapers PLC... 55,914
------------
Total Ireland 647,351
------------
ITALY (3.1%):
Automobiles (0.2%):
122,100 Fiat S.p.A................... 403,763
26,400 Fiat S.p.A., di Risp......... 46,192
31,900 Fiat S.p.A., Privileged...... 52,165
------------
502,120
------------
Banking (0.4%):
56,000 Banca Commerciale Italiana... 128,299
12,000 Banco Ambrosiano Veneto
S.p.A...................... 68,648
57,500 Credito Italiano............. 114,567
37,100 Istituto Bancario San Paolo
di Torina.................. 285,743
16,084 Istituto Mobiliare Italiano
S.p.A...................... 155,297
8,000 Mediobanca S.p.A............. 54,249
------------
806,803
------------
</TABLE>
Continued
-72-
<PAGE> 74
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Italy, Continued:
Building Materials (0.1%):
38,982 Italcementi S.p.A............ $ 270,649
------------
Diversified (0.1%):
154,500 Montedison S.p.A............. 99,335
20,000 Snia BPD S.p.A............... 18,195
------------
117,530
------------
Food & Household (0.0%):
23,400 Parmalat Finanziaria
S.p.A...................... 32,650
------------
Forest Products (0.0%):
4,000 Burgo (Cartiere) S.p.A....... 23,664
------------
Insurance -- Property, Casualty, Health & Other (0.4%):
28,775 Assicurazioni Generali....... 589,392
123,794 Instituto Nazionale delle
Assicurazioni.............. 181,295
9,075 Riunione Adriatici di Sicurta
S.p.A...................... 75,973
7,075 Riunione Adriatici di Sicurta
S.p.A., di Risp............ 33,879
5,000 Societa Assicuratrice
Industriale................ 45,431
------------
925,970
------------
Office Automation & Equipment (0.0%):
52,800 Olivetti Group (b)........... 19,891
------------
Oil & Gas Exploration, Production, & Services (0.7%):
256,983 ENI S.p.A.................... 1,503,818
------------
Publishing & Broadcasting (0.1%):
33,484 Mediaset S.p.A............... 152,306
12,499 Mondadori (Arnoldo) Editore
S.p.A...................... 76,595
------------
228,901
------------
Rubber -- Tires (0.1%):
61,000 Pirelli S.p.A................ 165,288
------------
Telecommunication Equipment (0.0%):
3,500 Sirti S.p.A.................. 19,075
------------
Telecommunications (0.9%):
130,376 Telecom Italia S.p.A......... 829,516
34,884 Telecom Italia S.p.A.-RNC.... 124,700
219,437 Telecom Italia Mobile
S.p.A...................... 740,948
60,025 Telecom Italia Mobile
S.p.A.-RNC................. 103,852
------------
1,799,016
------------
Textiles (0.0%):
5,340 Benetton Group S.p.A......... 79,873
------------
Utilities -- Electric & Gas (0.1%):
16,000 Edison S.p.A................. 74,385
19,000 Italgas S.p.A................ 58,217
------------
132,602
------------
Total Italy 6,627,850
------------
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
COMMON STOCKS, CONTINUED:
JAPAN (29.9%):
Automobiles (2.4%):
30,000 Honda Motor Co., Ltd......... $ 1,003,378
85,000 Nissan Motor Co., Ltd........ 583,657
116,000 Toyota Motor Corp............ 3,556,417
------------
5,143,452
------------
Banking (5.0%):
13,000 77 Bank...................... 126,267
66,000 Asahi Bank, Ltd.............. 495,000
18,000 Ashikaga Bank, Ltd........... 54,426
151,000 Bank of Tokyo-Mitsubishi,
Ltd........................ 2,805,742
42,000 Bank of Yokohama, Ltd........ 212,483
22,000 Chiba Bank, Ltd.............. 111,486
86,000 Fuji Bank, Ltd............... 1,118,581
13,000 Gunma Bank, Ltd.............. 108,589
18,000 Hokuriku Bank................ 52,145
91,000 Industrial Bank of Japan,
Ltd........................ 1,268,158
39,000 Joyo Bank.................... 216,740
35,000 Mitsubishi Trust & Banking... 511,402
34,000 Mitsui Trust & Banking....... 211,638
117,000 Sakura Bank, Ltd............. 716,427
34,000 Shizuoka Bank................ 367,567
98,000 Sumitomo Bank, Ltd........... 1,572,634
58,000 Tokai Bank................... 543,750
50,000 Yasuda Trust & Banking....... 192,145
------------
10,685,180
------------
Beverages (0.3%):
9,000 Asahi Breweries, Ltd......... 136,824
27,000 Kirin Brewery Co., Ltd....... 250,844
12,000 Sapporo Breweries, Ltd....... 91,216
5,000 Takara Shuzo, Ltd............ 33,150
------------
512,034
------------
Building Materials (0.4%):
44,000 Chichibu Onoda Cement
Corp....................... 144,932
10,000 Nihon Cement Co., Ltd........ 40,625
9,000 Sanwa Shutter Corp........... 74,417
12,000 Tostem Corp.................. 269,594
</TABLE>
Continued
-73-
<PAGE> 75
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Building Materials, Continued:
13,000 Toto, Ltd.................... $ 160,304
6,000 Toyo Seikan Kaisha, Ltd...... 100,845
------------
790,717
------------
Chemicals (1.2%):
51,000 Asahi Chemical Industry Co.,
Ltd........................ 277,829
21,000 Dainippon Ink & Chemical,
Inc........................ 86,022
18,000 Daicel Chemical Industries... 64,916
33,000 Denki Kagaku Kogyo Kabushiki
Kaisha..................... 76,647
13,000 Kaneka Corp.................. 79,823
91,000 Mitsubishi Chemical Corp..... 236,723
25,000 Mitsui Toatsu Chemical,
Inc........................ 61,233
11,000 Nippon Shokubai K.K. Co...... 76,833
21,000 Sekisui Chemical Co., Ltd.... 177,365
11,000 Shin-Etsu Chemical Co.,
Ltd........................ 314,020
37,000 Showa Denko K. K. (b)........ 81,562
65,000 Sumitomo Chemical Co......... 262,415
90,000 Toray Industries, Inc........ 591,385
35,000 Tosoh Corp. (b).............. 106,123
39,000 Ube Industries, Ltd.......... 100,464
------------
2,593,360
------------
Construction & Housing (0.5%):
22,000 Aoki Corp. (b)............... 14,493
19,000 Daiwa House Industry Co.,
Ltd........................ 215,034
40,000 Fujita Corp.................. 44,932
52,000 Haseko Corp. (b)............. 54,020
25,000 Kajima Corp.................. 129,434
4,000 Misawa Homes................. 21,655
25,000 Obayashi Corp................ 146,537
21,000 Penta-Ocean Construction..... 52,677
17,000 Sekisui House, Ltd........... 162,247
19,000 Shimizu Corp................. 97,888
36,000 Taisei Corp.................. 145,034
------------
1,083,951
------------
Data Processing (0.4%):
53,000 Fujitsu, Ltd................. 778,885
------------
Diversified (0.6%):
10,000 Ebara Corp................... 140,203
7,000 Kurita Water................. 202,787
10,000 Makita Corp.................. 150,338
34,000 Mitsubishi Materials......... 117,736
19,000 NSK, Ltd..................... 116,022
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Diversified, Continued:
12,000 Shimano, Inc................. $ 297,973
6,000 Toyoda Automatic Loom
Works...................... 131,757
------------
1,156,816
------------
Electrical & Electronic (1.1%):
7,000 Dainippon Screen MFG Co.,
Ltd........................ 80,405
96,000 Hitachi, Ltd................. 1,086,486
73,000 Mitsubishi Electric Corp..... 400,760
47,000 NEC Corp..................... 682,770
------------
2,250,421
------------
Electronic Components (1.7%):
4,620 Advantest Corp............... 429,223
8,000 Alps Electric Co., Ltd....... 113,513
6,700 Fanuc, Ltd................... 313,496
7,000 Kyocera Corp................. 603,040
7,000 Murata Manufacturing Co.,
Ltd........................ 329,307
3,000 Nitto Denko Co............... 61,824
6,000 Omron Corp................... 141,385
5,000 Pioneeer Electronic Corp..... 125,422
6,000 Rohm Co., Ltd................ 785,473
3,000 Secom Co., Ltd............... 219,679
3,300 Tokyo Electron, Ltd.......... 204,020
2,000 Uniden Corp.................. 33,108
24,000 Yokogawa Electric Corp....... 218,919
------------
3,578,409
------------
Engineering (0.2%):
7,500 Daito Trust Construction
Co......................... 80,448
5,000 Kandenko Co., Ltd............ 38,851
19,000 Kinden Corp.................. 272,804
46,000 Kumagi Gumi Co., Ltd......... 56,334
9,000 Toa Corp..................... 29,721
------------
478,158
------------
Entertainment (0.1%):
3,400 Sega Enterprise, Ltd......... 103,378
700 Toho Co., Ltd................ 110,557
7,000 Tokyo Dome Corp.............. 85,135
------------
299,070
------------
Financial Services (0.9%):
12,500 Credit Saison................ 384,290
34,000 Daiwa Securities Co., Ltd.... 233,463
14,000 Jaccs Co., Ltd............... 93,412
58,000 Nomura Securities Co.,
Ltd........................ 822,973
2,000 Orix Corp.................... 161,486
</TABLE>
Continued
-74-
<PAGE> 76
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Financial Services, Continued:
4,000 Yamaguchibank................ $ 58,108
70,000 Yamaichi Securities Co.,
Ltd........................ 153,716
------------
1,907,448
------------
Food & Household (0.4%):
19,000 Ajinomoto Co., Inc........... 182,939
35,000 Kao Corp..................... 526,182
15,000 Meiji Seika.................. 76,647
11,000 Nichirei Corp................ 46,824
------------
832,592
------------
Food Processing & Packaging (0.2%):
15,000 House Foods Industry......... 272,382
10,000 Meiji Milk Products Co.,
Ltd........................ 43,834
3,000 Nissin Food Products Co.,
Ltd........................ 73,226
5,000 Yamazaki Baking Co., Ltd..... 76,858
------------
466,300
------------
Forest Products (0.3%):
56,000 Oji Paper Co., Ltd........... 293,243
43,000 Nippon Paper Industries
Co......................... 232,432
15,000 Sumitomo Forestry Co.,
Ltd........................ 143,159
------------
668,834
------------
Health Care (1.6%):
13,000 Chugai Pharmaceutical Co.,
Ltd........................ 115,287
13,000 Daiichi Pharmaceutical....... 232,770
15,000 Eisai Co., Ltd............... 311,655
35,000 Kyowa Hakko Kogyo............ 224,071
14,000 Sankyo Co., Ltd.............. 500,169
23,000 Shiseido Co., Ltd............ 382,686
11,000 Taisho Pharmaceutical Co..... 287,077
35,000 Takeda Chemical Industries... 1,061,232
10,000 Yamanouchi Pharmaceutical
Co., Ltd................... 270,270
------------
3,385,217
------------
Hotels & Motels (0.0%):
4,000 Fujita Kanko, Inc............ 45,270
------------
Household Goods (1.5%):
66,000 Matsushita Electric
Industrial Co.............. 1,376,857
68,000 Sanyo Electric Co., Ltd...... 284,865
37,000 Sharp Corp................... 475,000
10,500 Sony Corp.................... 1,046,452
------------
3,183,174
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Housewares (0.1%):
26,000 Asahi Glass Co., Ltd......... $ 234,966
22,000 Nippon Sheet Glass Co.,
Ltd........................ 69,493
------------
304,459
------------
Industrial Goods & Services (0.8%):
26,000 Denso Corp................... 643,412
43,000 Furukawa Electric............ 287,272
8,000 NGK Insulators, Ltd.......... 86,486
11,000 NGK Sparkplug Co., Ltd....... 114,274
29,000 Sumitomo Electric
Industries................. 482,517
------------
1,613,961
------------
Insurance -- Property, Casualty, Health & Other (0.5%):
22,000 Mitsui Marine & Fire
Insurance.................. 151,064
9,000 Nichido Fire & Marine
Insurance.................. 63,015
23,000 Nippon Fire & Marine
Insurance.................. 117,137
24,000 Sumitomo Marine & Fire....... 183,446
51,000 Tokio Marine & Fire
Insurance.................. 650,422
------------
1,165,084
------------
Leisure (0.1%):
16,000 Konica Corp.................. 103,649
------------
Machinery (0.8%):
10,000 Amada Co., Ltd............... 77,111
9,000 Daikin Industries, Ltd....... 83,615
36,000 Komatsu, Ltd................. 245,676
62,000 Kubota Corp.................. 267,061
104,000 Mitsubishi Heavy Industries,
Ltd........................ 733,445
44,000 Mitsui Engineering &
Shipbuilding Co., Ltd.
(b)........................ 78,784
6,000 Mori Seiki Co., Ltd.......... 91,216
------------
1,576,908
------------
Merchandising (0.6%):
16,000 Daiei, Inc................... 121,757
15,000 Ito-Yokado Co., Ltd.......... 855,152
9,000 JUSCO Co., Ltd............... 250,844
18,000 Seiyu, Ltd................... 122,686
------------
1,350,439
------------
Metals -- Non Ferrous (0.2%):
35,000 Nippon Light Metal Co.,
Ltd........................ 110,853
25,000 NTN Corp..................... 132,812
20,000 Sumitomo Metal Mining Co..... 115,372
------------
359,037
------------
</TABLE>
Continued
-75-
<PAGE> 77
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Metals -- Steel (0.8%):
24,000 Daido Steel Co., Ltd......... $ 63,851
96,000 Kawasaki Steel Corp.......... 272,432
255,000 Nippon Steel Co.............. 715,034
149,000 NKK Corp..................... 271,824
130,000 Sumitomo Metal Industries.... 327,196
------------
1,650,337
------------
Oil & Gas Exploration, Production, & Services (0.2%):
28,000 Cosmo Oil Co., Ltd........... 106,419
39,000 Japan Energy Corp............ 87,289
17,000 Mitsubishi Oil Co., Ltd...... 71,360
48,000 Nippon Oil Co., Ltd.......... 217,297
------------
482,365
------------
Printing -- Commercial (0.5%):
26,000 Dai Nippon Printing Co.,
Ltd........................ 595,101
29,000 Toppan Printing Co., Ltd..... 465,371
------------
1,060,472
------------
Publishing & Broadcasting (0.1%):
17,000 Tokyo Broadcasting System,
Inc........................ 281,419
------------
Real Estate (0.4%):
39,000 Mitsubishi Estate Co.,
Ltd........................ 556,672
24,000 Mitsui Fudosan Co., Ltd...... 308,108
------------
864,780
------------
Recreation (0.9%):
24,000 Canon, Inc................... 766,216
41,000 Citizen Watch Co., Ltd....... 346,284
16,000 Fuji Photo Film Co........... 672,973
13,000 Olympus Optical Co., Ltd..... 109,688
------------
1,895,161
------------
Retail -- Apparel/Shoes (0.1%):
5,900 Aoyama Trading Co., Ltd...... 176,900
------------
Retail -- Department Stores ( 0.4%):
7,000 Hankyu Department Stores,
Inc........................ 60,895
6,000 Istetan...................... 62,331
10,000 Marui Co., Ltd............... 168,919
27,000 Mitsukoshi, Ltd.............. 166,013
21,000 Mycal Corp................... 274,916
19,000 Takashimaya Co., Ltd......... 216,638
------------
949,712
------------
Retail -- Specialty Stores (0.1%):
4,000 Hoya Corp.................... 202,703
------------
Rubber & Rubber Products (0.3%):
25,000 Bridgestone Corp............. 599,662
31,000 Okamoto Industries, Inc...... 113,108
------------
712,770
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Textiles (0.1%):
26,000 Teijin, Ltd.................. $ 111,993
31,000 Toyobo, Ltd.................. 70,693
------------
182,686
------------
Transportation -- Airlines (0.1%):
52,000 Japan Airlines (b)........... 227,061
------------
Transportation -- Rail (1.2%):
161 East Japan Railway........... 692,137
27,000 Hankyu Corp.................. 140,701
46,000 Kinki Nippon Railway......... 262,635
18,000 Nagoya Railroad Co., Ltd..... 67,196
35,000 Nankai Electric Railway...... 172,931
53,000 Nippon Express Co., Ltd...... 356,765
27,000 Odakyu Electric Railway...... 147,998
33,000 Tobu Railway Co., Ltd........ 139,916
51,000 Tokyu Corp................... 277,829
16,000 Yamato Transport Co., Ltd.... 202,703
------------
2,460,811
------------
Transportation -- Shipping (0.1%):
71,000 Kawasaki Kisen Kaisha, Ltd.
(b)........................ 119,933
31,000 Mitsui O.S.K. Lines, Ltd.
(b)........................ 54,983
35,000 Nippon Yusen Kabushiki
Kaish...................... 124,451
------------
299,367
------------
Utilities -- Electric & Gas (0.9%):
25,300 Kansai Electric Power Co.,
Inc........................ 487,196
82,000 Osaka Gas Co., Ltd........... 197,382
15,600 Tohoku Electric Power........ 259,561
36,600 Tokyo Electric Power......... 689,341
143,000 Tokyo Gas Co., Ltd........... 355,084
------------
1,988,564
------------
Utilities -- Telecommunications (0.9%):
179 Nippon Telegraph & Telephone
Corp....................... 1,814,188
------------
Wholesale (0.9%):
63,000 Itochu Corp.................. 296,377
65,000 Marubeni Corp................ 271,199
48,000 Mitsubishi Corp.............. 514,865
46,000 Mitsui & Co.................. 439,020
</TABLE>
Continued
-76-
<PAGE> 78
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Japan, Continued:
Wholesale, Continued:
17,000 Nagase & Co. Ltd............. $ 117,736
29,000 Sumitomo Corp................ 254,730
------------
1,893,927
------------
Total Japan 63,456,048
------------
MALAYSIA (1.9%):
Agriculture & Livestock (0.1%):
123,000 Golden Hope Plantations
Berhad..................... 195,007
67,000 Highlands & Lowlands
Berhad..................... 95,042
------------
290,049
------------
Automobiles (0.1%):
11,000 Edaran Otomobile Nasional
Berhard.................... 88,867
25,000 Perusahaan Otomobil Nasional
Berhad..................... 109,045
------------
197,912
------------
Banking (0.3%):
74,000 RHB Capital Berhad........... 200,681
40,000 Malayan Banking Berhad....... 379,288
------------
579,969
------------
Building Materials (0.0%):
16,000 Hume Industries Berhad....... 60,686
99,000 Pan Malaysia-Cement Works
Berhad..................... 105,514
------------
166,200
------------
Engineering & Construction (0.1%):
28,000 United Engineers, Ltd........ 195,409
------------
Financial Services (0.2%):
38,000 AMMB Holdings Berhad......... 216,194
74,333 Public Bank Berhad........... 106,572
------------
322,766
------------
Leisure (0.1%):
100,500 Magnum Corp. Berhad.......... 128,840
66,000 Resorts World Berhad......... 188,999
------------
317,839
------------
Diversified (0.3%):
95,000 Amsteel Corp. Berhad......... 67,741
66,000 Multi-Purpose Holdings
Berhad..................... 82,108
30,500 YTL Corp. Berhad............. 96,017
85,000 Land & General Berhad........ 90,593
87,000 Sime Darby Berhad............ 273,884
------------
610,343
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Malaysia, Continued:
Real Estate (0.1%):
80,000 Hong Leong................... $ 81,926
33,000 Malaysian Resources Corp.
Berhad..................... 76,977
------------
158,903
------------
Telecommunication Equipment (0.0%):
30,000 Technology Resources
Industries Berhad (b)...... 43,467
------------
Telecommunications (0.2%):
123,500 Telekom Malaysia Berhad...... 454,369
------------
Tobacco (0.1%):
12,000 Rothmans of Pall Mall
Berhad..................... 125,165
------------
Transportation -- Airlines (0.0%):
25,000 Malaysian Airline System
Berhad..................... 61,160
------------
Transportation -- Shipping (0.0%):
36,000 Malaysian International
Shipping Berhad............ 91,484
------------
Utilities -- Electric & Gas (0.2%):
101,000 Tenaga Nasional Berhad....... 406,066
------------
Total Malaysia 4,021,101
------------
NEW ZEALAND (0.3%):
Beverages (0.0%):
13,326 Lion Nathan, Ltd............. 34,575
------------
Building Materials (0.0%):
19,165 Fletcher Challenge
Building................... 55,195
------------
Diversified (0.1%):
66,325 Brierley Investments, Ltd.... 60,660
------------
Forest Products (0.1%):
49,289 Carter Holt Harvey, Ltd...... 119,891
34,261 Fletcher Challenge, Ltd...... 44,891
40,163 Fletcher Challenge Paper..... 91,180
------------
255,962
------------
Oil & Gas Exploration, Production, & Services (0.0%):
4,729 Fletcher Challenge Energy
(b)........................ 16,227
------------
Telecommunications (0.1%):
60,102 Telecom Corp. of New Zealand,
Ltd........................ 306,031
------------
Total New Zealand 728,650
------------
</TABLE>
Continued
-77-
<PAGE> 79
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
NORWAY (0.5%):
Building -- Heavy Construction (0.1%):
1,450 Kvaerner ASA................. $ 84,287
------------
Chemicals (0.0%):
1,200 Dyno Industrier ASA.......... 32,594
------------
Diversified (0.1%):
1,250 Orkla ASA.................... 90,539
------------
Energy (0.2%):
8,550 Norsk Hydro ASA.............. 445,955
------------
Forest Products (0.0%):
700 Norske Skogindustrier ASA,
Class A.................... 26,361
------------
Health Care (0.0%):
1,050 Nycomed ASA, Class A......... 20,942
1,600 Nycomed ASA, Class B......... 29,602
------------
50,544
------------
Insurance -- Property, Casualty, Health & Other (0.0%):
13,624 Storebrand ASA (b)........... 86,345
------------
Oil & Gas Exploration, Production, & Services (0.1%):
1,700 Petroleum Geo-Services ASA
(b)........................ 91,235
------------
Transportation -- Marine (0.0%):
2,400 Bergesen d,y, ASA, Class A... 61,567
------------
Utilities -- Electric & Gas (0.0%):
10,950 Hafslund ASA, Class A........ 67,530
1,600 Hafslund ASA, Class B........ 8,398
------------
75,928
------------
Total Norway 1,045,355
------------
SINGAPORE (1.2%):
Automobiles (0.0%):
7,000 Cycle & Carriage, Ltd........ 61,386
------------
Banking (0.4%):
15,000 Development Bank of
Singapore, Ltd............. 194,763
30,135 Oversea-Chinese Banking
Corp., Ltd................. 303,189
25,000 United Overseas Bank, Ltd.... 271,920
------------
769,872
------------
Beverages (0.1%):
10,000 Fraser & Neave, Ltd.......... 67,980
------------
Diversified (0.1%):
50,750 Keppel Corp.................. 217,349
77,000 United Industrial Corp....... 60,720
------------
278,069
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Singapore, Continued:
Electrical & Electronic (0.0%):
29,000 Amcol Holdings, Ltd. (b)..... $ 51,651
------------
Hotels & Motels (0.0%):
13,200 Shangri-La Hotel, Ltd........ 36,611
------------
Metals -- Steel (0.1%):
26,000 NatSteel, Ltd................ 73,174
------------
Publishing & Broadcasting (0.1%):
9,000 Singapore Press Holdings,
Ltd........................ 170,698
------------
Real Estate (0.1%):
21,000 City Developments............ 178,447
20,000 DBS Land, Ltd................ 62,270
------------
240,717
------------
Telecommunications (0.2%):
198,000 Singapore Telecommunications,
Ltd........................ 375,535
------------
Transportation -- Airlines (0.1%):
33,000 Singapore Airlines, Ltd...... 309,581
------------
Transportation -- Marine (0.0%):
47,000 Neptune Orient Lines, Ltd.... 38,341
------------
Total Singapore 2,473,615
------------
SPAIN (2.2%):
Banking (0.7%):
4,326 Corporacion Bancaria de
Espana SA.................. 239,349
24,685 Banco Bilbao Vizcaya SA...... 645,479
3,925 Banco Central
Hispanoamericano........... 150,596
18,813 Banco Santander SA........... 526,509
------------
1,561,933
------------
Business & Public Services (0.1%):
8,972 Autopistas Concesionaria
Espanola SA................ 105,008
------------
Construction & Housing (0.0%):
640 Fomento de Construccion y
Contratas SA............... 78,826
------------
Diversified (0.0%):
579 Corporacion Financiera Alba
SA......................... 66,908
------------
Insurance -- Property, Casualty, Health & Other (0.0%):
1,047 Corporacion Mapfre........... 58,671
------------
</TABLE>
Continued
-78-
<PAGE> 80
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Spain, Continued:
Manufacturing (0.1%):
822 Zardoya Otis SA (b).......... $ 95,412
------------
Metal -- Steel (0.1%):
589 Acerinox, Registered......... 107,412
------------
Oil & Gas Exploration, Production & Services (0.2%):
10,348 Repsol....................... 415,054
------------
Real Estate (0.0%):
1,062 Inmobiliaria Metropolitana
Vasco Central SA........... 37,460
1,915 Vallehermoso SA.............. 45,320
------------
82,780
------------
Telecommunications (0.4%):
28,602 Telefonica de Espana......... 768,192
------------
Tobacco (0.0%):
1,563 Tabacalera SA................ 83,555
------------
Utilities -- Electric & Gas (0.6%):
32,384 Empresa Nacional de
Electridad SA.............. 668,250
4,656 Gas Natural SDG SA........... 228,184
22,505 Iberdrola SA................. 250,338
9,913 Union Electrica Fenosa....... 78,946
------------
1,225,718
------------
Total Spain 4,649,469
------------
SWEDEN (2.8%):
Automobiles (0.2%):
5,637 Volvo AB, Class A............ 150,785
9,615 Volvo AB, Class B............ 257,797
------------
408,582
------------
Automotive Parts (0.0%):
1,200 Autoliv, Inc................. 42,196
------------
Banking (0.2%):
17,259 Skandinaviska Enskildea
Banken, Class A............ 198,320
6,651 Svenska Handelsbanken, Class
A.......................... 206,307
------------
404,627
------------
Building Materials (0.0%):
1,200 Scancem AB, Class A.......... 46,868
------------
Chemicals (0.1%):
7,858 AGA AB, Class A.............. 113,485
7,650 AGA AB, Class B.............. 107,119
------------
220,604
------------
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Sweden, Continued:
Construction & Housing (0.1%):
3,259 Skanska AB, Class B.......... $ 139,972
------------
Electrical & Electronic (0.8%):
19,850 ABB AB, Class A.............. 265,485
5,500 ABB AB, Class B.............. 73,906
29,527 Ericsson LM, Class B......... 1,333,057
------------
1,672,448
------------
Forest Products (0.2%):
10,416 Stora Kopparbergs Bergslags
Aktiebolag, Class A........ 171,357
8,510 Svenska Cellulosa AB, Class
B.......................... 204,124
------------
375,481
------------
Health Care (0.6%):
64,752 Astra AB, Class A............ 1,162,839
12,833 Astra AB, Class B............ 215,955
------------
1,378,794
------------
Household Goods (0.1%):
2,991 Electrolux AB, Class B....... 231,381
------------
Industrial Goods & Services (0.1%):
3,000 S.K.F. AB, Class B........... 80,247
2,000 Trelleborg AB, Class B....... 32,652
------------
112,899
------------
Insurance -- Property, Casualty, Health & Other (0.1%):
6,066 Skanddia Forsakrings AB...... 246,819
------------
Machinery (0.1%):
4,120 Atlas Copco AB, Class A...... 118,485
------------
Metals -- Aluminum (0.0%):
1,495 Granges AB (b)............... 22,154
------------
Real Estate (0.0%):
1,455 Diligentia AB (b)............ 18,546
------------
Retail -- Apparel/Shoes (0.2%):
9,585 Hennes & Mauritz AB, Class
B.......................... 403,845
------------
Tobacco (0.0%):
20,354 Swedish Match AB............. 64,670
------------
Total Sweden 5,908,371
------------
SWITZERLAND (6.3%):
Banking (1.1%):
5,974 Credit Suisse Group,
Registered................. 805,951
678 Union Bank of Switzerland,
Bearer..................... 755,066
</TABLE>
Continued
-79-
<PAGE> 81
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Switzerland, Continued:
Banking, Continued:
2,621 Schweizerische Bankverein,
Registered................. $ 708,930
695 Union Bank of Switzerland.... 154,202
------------
2,424,149
------------
Building Materials (0.2%):
351 Holderbank Financiere Glarus
AG, Class B................ 327,991
------------
Business & Public Services (0.2%):
550 Adecco SA.................... 214,235
49 Societe Generale de
Surveillance Holding SA.... 98,835
116 Societe Generale de
Surveillance, Registered... 43,036
------------
356,106
------------
Chemicals (1.6%):
204 Novartis-Bearer.............. 327,156
1,961 Novartis, Registered......... 3,147,462
------------
3,474,618
------------
Construction & Housing (0.0%):
25 Schindler Holding AG......... 32,884
25 Schindler Holding AG,
Registered................. 32,653
------------
65,537
------------
Electrical & Electronic (0.2%):
260 ABB AG, Bearer............... 369,507
------------
Food & Household Goods (0.8%):
1,260 Nestle SA, Registered........ 1,599,038
------------
Health Care (1.4%):
50 Roche Holding AG, Bearer..... 767,795
222 Roche Holding AG,
Genussshein................ 2,147,148
------------
2,914,943
------------
Insurance -- Property, Casualty, Health & Other (0.6%):
482 Schweiz Rueckversicherungs-
Gesellschaft, Registered... 700,948
1,600 Zurich
Versicherungs-Gesellschaft,
Registered................. 651,799
------------
1,352,747
------------
Metals -- Non Ferrous (0.1%):
120 Alusuisse-Lonza Holding AG,
Registered................. 109,118
------------
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
COMMON STOCKS, CONTINUED:
Switzerland, Continued:
Retail -- Jewelry (0.1%):
106 SMH AG, Bearer............... $ 60,637
673 SMH AG, Registered........... 91,685
------------
152,322
------------
Retail -- Restaurants (0.0%):
280 Valora Holding, Registered... 63,420
------------
Transportation -- Airlines (0.0%):
70 Sairgroup (b)................ 89,854
------------
Total Switzerland 13,299,350
------------
Total Common Stock 209,757,347
------------
PREFERRED STOCK (0.0%):
BRITAIN (0.0%):
2,835 Northern Electric PLC........ 5,455
------------
Total Preferred Stock 5,455
------------
RIGHT & WARRANTS (0.0%):
RIGHTS (0.0%):
FRANCE (0.0%):
4,019 CIE Generale des Eaux........ 2,401
MALAYSIA (0.0%):
39,000 Multi-Purpose Holdings
Berhad..................... 18,934
------------
Total Rights 21,335
------------
WARRANTS (0.0%):
BELGIUM (0.0%):
329 Soc Gen Bru Put Warrants..... 2,421
------------
HONG KONG (0.0%):
1,250 Hysan Development Co.,Ltd.... 549
5,600 Hong Kong & China Gas Co.,
Ltd........................ 7,269
------------
7,818
------------
SWITZERLAND (0.0%):
195 Schweizerische Bankverein,
Registered................. 2,167
209 Roche Holding AG............. 21,907
------------
24,074
------------
Total Warrants 34,313
------------
Total Rights & Warrants 55,648
------------
</TABLE>
Continued
-80-
<PAGE> 82
QUALIVEST FUNDS
INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- --------- ----------------------------- ------------
<C> <S> <C>
PREFERRED STOCK, CONTINUED:
INVESTMENT COMPANIES (1.2%):
2,621,860 Bank of New York Cash
Reserve.................... $ 2,621,860
------------
Total Investment Companies 2,621,860
------------
Total (Cost $180,040,369)(a) $212,440,310
============
</TABLE>
- ---------
Percentages are based on net assets of $212,143,361.
<TABLE>
<C> <S>
(a) Represents cost for financial reporting purposes and differs from cost basis for federal income tax purposes by
the amount of losses recognized for financial reporting in excess of federal income tax reporting of $351,220.
Cost for federal income tax purposes differs from value by net unrealized appreciation of securities as
follows:
Unrealized appreciation... $ 45,881,748
Unrealized depreciation... (13,833,027)
------------
Net unrealized
appreciation............ $ 32,048,721
============
(b) Non-income producing security.
</TABLE>
OPEN FORWARD CURRENCY CONTRACTS
<TABLE>
<CAPTION>
CONTRACT VALUE APPRECIATION
CURRENCY (DEPRECIATION)
-------------- --------------
(U.S. DOLLARS)
--------------------------------
<S> <C> <C>
Currency Purchased:
Australian Dollar.................................................. $118,169 $ 1,083
British Pounds..................................................... 280,584 (2,277)
Spanish Peseta..................................................... 91,951 (489)
French Franc....................................................... 192,416 (357)
Malaysian Dollar................................................... 78,761 (345)
-------------- --------------
Net payable for forward currency contracts purchased............... $761,881 $ (2,385)
========== ==========
</TABLE>
See notes to financial statements.
-81-
<PAGE> 83
QUALIVEST FUNDS
ALLOCATED CONSERVATIVE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- -------- -------------------------------- -----------
<C> <S> <C>
INVESTMENT COMPANIES (99.9%):
397,410 Qualivest Diversified Bond Fund
(Class Y)..................... $ 4,121,142
391,078 Qualivest Intermediate Bond Fund
(Class Y)..................... 3,981,169
78,998 Qualivest International
Opportunities Fund (Class
Y)............................ 977,201
95,395 Qualivest Large Companies Value
Fund (Class Y)................ 1,528,232
291,293 Qualivest Money Market Fund
(Class Y)..................... 291,293
58,742 Qualivest Optimized Stock Fund
(Class Y)..................... 1,013,886
35,216 Qualivest Small Companies Value
Fund (Class Y)................ 629,319
-----------
Total Investment Companies 12,542,242
-----------
Total (Cost -- $11,637,761)(a) $12,542,242
</TABLE> ===========
- ---------
Percentages indicated are based on net assets of $12,553,912.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting in excess of federal income tax reporting of $3,943.
Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation...... $904,706
Unrealized depreciation...... (4,168)
--------
Net unrealized
appreciation............... $900,538
========
</TABLE>
See notes to financial statements.
-82-
<PAGE> 84
QUALIVEST FUNDS
ALLOCATED BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ----------------------------- ------------
<C> <S> <C>
INVESTMENT COMPANIES (100.0%):
3,034,311 Qualivest Diversified Bond
Fund (Class Y)............. $ 31,465,803
1,913,410 Qualivest Intermediate Bond
Fund (Class Y)............. 19,478,518
1,575,155 Qualivest International
Opportunities Fund (Class
Y) 19,484,662
1,890,927 Qualivest Large Companies
Value Fund (Class Y)....... 30,292,647
3,904,747 Qualivest Money Market Fund
(Class Y).................. 3,904,747
1,126,384 Qualivest Optimized Stock
Fund (Class Y)............. 19,441,395
622,258 Qualivest Small Companies
Value Fund (Class Y)....... 11,119,749
------------
Total Investment Companies 135,187,521
------------
Total (Cost -- $118,926,916)(a) $135,187,521
</TABLE> ============
- ---------
Percentages indicated are based on net assets of $135,220,720.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting in excess of federal income tax reporting of $197,753.
Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $16,260,789
Unrealized depreciation... (197,937)
-----------
Net unrealized
appreciation............ $16,062,852
===========
</TABLE>
See notes to financial statements.
-83-
<PAGE> 85
QUALIVEST FUNDS
ALLOCATED GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- -------- -------------------------------- -----------
<C> <S> <C>
INVESTMENT COMPANIES (99.9%):
298,760 Qualivest Diversified Bond Fund
(Class Y)..................... $ 3,098,139
192,937 Qualivest Intermediate Bond Fund
(Class Y)..................... 1,964,095
445,549 Qualivest International
Opportunities Fund (Class
Y)............................ 5,511,445
502,144 Qualivest Large Companies Value
Fund (Class Y)................ 8,044,346
823,291 Qualivest Money Market Fund
(Class Y)..................... 823,291
314,778 Qualivest Optimized Stock Fund
(Class Y)..................... 5,433,060
206,515 Qualivest Small Companies Value
Fund (Class Y)................ 3,690,422
-----------
Total Investment Companies 28,564,798
-----------
Total (Cost -- $24,760,547)(a) $28,564,798
</TABLE> ===========
- ---------
Percentages indicated are based on net assets of $28,588,626.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting in excess of federal income tax reporting of $10,549.
Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.... $3,805,108
Unrealized depreciation.... (11,406)
----------
Net unrealized
appreciation............. $3,793,702
==========
</TABLE>
See notes to financial statements.
-84-
<PAGE> 86
QUALIVEST FUNDS
ALLOCATED AGGRESSIVE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JULY 31, 1997
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- -------- -------------------------------- -----------
<C> <S> <C>
INVESTMENT COMPANIES (100.0%):
650,327 Qualivest International
Opportunities Fund (Class Y) $ 8,044,548
661,079 Qualivest Large Companies Value
Fund (Class Y)................ 10,590,482
839,679 Qualivest Money Market Fund
(Class Y)..................... 839,679
380,831 Qualivest Optimized Stock Fund
(Class Y)..................... 6,573,144
385,226 Qualivest Small Companies Value
Fund (Class Y)................ 6,883,995
-----------
Total Investment Companies 32,931,848
-----------
Total (Cost -- $27,878,753)(a) $32,931,848
</TABLE> ===========
- ---------
Percentages indicated are based on net assets of $32,927,314.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting in excess of federal income tax reporting of $18,171.
Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.... $5,054,833
Unrealized depreciation.... (19,909)
----------
Net unrealized
appreciation............. $5,034,924
==========
</TABLE>
See notes to financial statements.
-85-
<PAGE> 87
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS
JULY 31, 1997
1. ORGANIZATION:
Qualivest Funds (the "Trust") was organized as a Massachusetts business trust
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.
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; and 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. 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. 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. Between the date of organization and the
date of commencement of operations, the Trust had no operations other than
those actions relating to organizational matters, including the sale of
initial shares.
Certain purchases of Class A shares are subject to front-end sales charges,
while certain redemptions of Class C shares may be subject to a contingent
deferred sales charges, all in accordance with the Trust's current
prospectuses. Each class of shares for each Fund has identical rights and
privileges except with respect to distribution (12b-1) fees paid by the Class
A, Class C and Class Q shares, voting rights on matters affecting a single
class of shares and the exchange privileges of each class of shares.
The Fund's investment objectives are as follows:
<TABLE>
<CAPTION>
FUND OBJECTIVE
--------------------------------- --------------------------------------------------------
<S> <C>
Money Market Fund................ The Fund seeks current income consistent with liquidity
and stability of principal. It invests in high quality
short-term money market instruments.
U.S. Treasury Money Market The Fund seeks current income consistent with the
Fund........................... liquidity and stability of principal. It invests
primarily in short-term U.S. Treasury Bills, notes and
bonds and in other money market instruments issued or
guaranteed by the U.S. Government.
</TABLE>
Continued
-86-
<PAGE> 88
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1997
<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, 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 bonds,
which may 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 bonds,
such as 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 companies with a market
capitalization of less than $1 billion at the time of
purchase.
Large Companies Value Fund....... The Fund seeks long-term capital appreciation. It
invests primarily in common stocks and securities
convertible into common stocks of companies with a
market capitalization of at least $1 billion at the time
of purchase; income and payment of dividends is a
consideration in selecting investments.
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, which
emphasizes stocks issued by larger sized companies.
</TABLE>
Continued
-87-
<PAGE> 89
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
FUND OBJECTIVE
--------------------------------- --------------------------------------------------------
<S> <C>
International Opportunities The Fund seeks capital appreciation. It invests
Fund........................... primarily in common stocks and securities convertible
into common stocks of companies that are organized under
the laws of at least three countries other than the U.S.
whose securities are listed on the EAFE Index, issued by
large-sized U.S. companies with substantial business
activities abroad.
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 applicable
Funds within the Trust ("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 the 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 in the equity funds, although
it also will invest in the income funds and money market
funds. However, this Fund emphasizes the potential
rewards and risks of an investment in equity securities.
Allocated Aggressive Fund........ The Fund seeks to provide maximum capital appreciation.
The Fund seeks this objective by investing substantially
all of its assets in those Underlying Funds that invests
primarily in equity securities. The Fund is oriented
toward those investors seeking long-term capital
appreciation, with the potential for greater gains but
with greater risk of loss.
</TABLE>
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements requires management to make estimates and assumptions
which affect the reported amounts of assets and liabilities at the date of
the financial statements and the reported amounts of income and expenses
during the reporting period. Actual results could differ from those
estimates.
Continued
-88-
<PAGE> 90
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1997
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 sale
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.
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
Continued
-89-
<PAGE> 91
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1997
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 with broker-dealers which the Trust's investment
adviser deems creditworthy under guidelines approved by the Board of
Trustees, subject to the seller's agreement to repurchase such securities at
a mutually agreed upon date and price. The repurchase price generally equals
the price paid by a Fund plus interest negotiated on the basis of current
short-term rates, which may be more or less than the rate on the underlying
portfolio securities. The seller under a repurchase agreement, is required to
pledge securities as collateral held pursuant to the agreement at not less
than 102% of the repurchase price (including accrued interest). Securities
subject to repurchase agreements are held by each Fund's custodian or another
qualified custodian or in the Federal Reserve/Treasury book-entry system.
Repurchase agreements may be considered to be loans by a Fund under the 1940
Act.
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 July 31, 1997.
Continued
-90-
<PAGE> 92
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1997
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, the Diversified
Bond Fund, the Allocated Conservative Fund and the Allocated Balanced 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 and the International Opportunities Fund. Distributions from net
investment income are declared and paid on or about the final business day of
April, July, October and December for the Allocated Growth Fund and the
Allocated Aggressive Fund. Net realized capital gains, if any, are declared
and distributed annually for all Funds.
Distributions from net investment income and from net realized capital gains
are determined in accordance with income tax regulations which may differ
from generally accepted accounting principles. These differences are
primarily due to differing treatments of foreign currency transactions and
deferrals of certain losses.
FEDERAL INCOME TAXES:
It is the policy of each of the Funds to qualify as a regulated investment
company by complying with the provisions available to certain investment
companies, as defined in applicable sections of the Internal Revenue Code,
and by making distributions of net investment income and net realized capital
gains sufficient to relieve it from all, or substantially all, federal income
taxes. Accordingly, no provision for federal income tax is required in the
financial statements.
OTHER:
Expenses that are directly related to one of the Funds are charged directly
to that Fund and are allocated to each class of shares based on the relative
net assets of each class, except 12b-1 fees are allocated only to Class A
shares, Class C shares or Class Q shares. Other operating expenses of the
Trust are prorated to the Funds on the basis of relative net assets.
3. PURCHASES AND SALES OF SECURITIES:
Purchases and sales of securities (excluding short-term securities) for the
year ended July 31, 1997 are as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ ------------
<S> <C> <C>
Intermediate Bond Fund....................................... $231,346,348 $204,864,448
Diversified Bond Fund........................................ $117,536,472 $ 51,213,679
Small Companies Value Fund................................... $124,465,728 $106,184,299
Large Companies Value Fund................................... $ 62,864,438 $ 55,252,515
Optimized Stock Fund......................................... $121,974,386 $106,034,128
International Opportunities Fund............................. $ 43,262,147 $ 5,298,975
</TABLE>
Continued
-91-
<PAGE> 93
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
PURCHASES SALES
------------ ------------
<S> <C> <C>
Allocated Conservative Fund.................................. $ 10,295,501 $ 6,695,892
Allocated Balanced Fund...................................... $ 97,211,624 $ 21,439,363
Allocated Growth Fund........................................ $ 19,180,077 $ 6,311,181
Allocated Aggressive Fund.................................... $ 23,612,477 $ 5,132,726
</TABLE>
Continued
-92-
<PAGE> 94
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1997
4. CAPITAL SHARE TRANSACTIONS:
<TABLE>
<CAPTION>
U.S. TREASURY TAX-FREE
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
--------------------------------- ----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JULY 31, 1997 JULY 31, 1996 JULY 31, 1997 JULY 31, 1996 JULY 31, 1997 JULY 31, 1996
--------------- --------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASS A SHARES:
Proceeds from shares
issued................. $ 618,949,881 $ 444,512,914 $ 344,238,546 $ 182,756,923 $ 53,775,656 $ 64,492,744
Dividends reinvested..... 11,402,828 10,674,201 5,007,394 3,897,686 854,661 991,188
Cost of shares
redeemed............... (607,379,194) (440,045,094) (314,452,454) (170,321,093) (53,104,273) (68,911,030)
--------------- --------------- ------------- ------------- ------------ ------------
Net increase
(decrease)--Class A
Shares................. $ 22,973,515 $ 15,142,021 $ 34,793,486 $ 16,333,516 $ 1,526,044 $ (3,427,098)
=============== =============== ============= ============= ============ ============
CLASS Y SHARES:
Proceeds from shares
issued................. $ 513,550,802 $ 337,817,323 $ 59,356,191 $ 4,244,114 $ 10,480,461 $ 3,950,136
Dividends reinvested..... 64,770 7,661 13,934 711 435 502
Cost of shares
redeemed............... (451,096,310) (303,841,055) (57,337,160) (3,937,660) (7,418,335) (3,241,089)
--------------- --------------- ------------- ------------- ------------ ------------
Net increase
(decrease)--Class Y
Shares................. $ 62,519,262 $ 33,983,929 $ 2,032,965 $ 307,165 $ 3,062,561 $ 709,549
=============== =============== ============= ============= ============ ============
CLASS Q SHARES:
Proceeds from shares
issued................. $ 1,671,407,571 $ 1,146,443,973 $ 271,054,101 $ 155,622,865 $ 30,456,641 $ 26,681,957
Dividends reinvested..... 7,980,982 4,382,109 1,585,249 1,253,472 110,983 60,852
Cost of shares
redeemed............... (1,636,982,885) (1,091,816,368) (272,488,734) (133,308,321) (28,388,548) (24,820,752)
--------------- --------------- ------------- ------------- ------------ ------------
Net increase
(decrease)--Class Q
Shares................. $ 42,405,668 $ 59,009,714 $ 150,616 $ 23,568,016 $ 2,179,076 $ 1,922,057
=============== =============== ============= ============= ============ ============
SHARE TRANSACTIONS:
CLASS A SHARES:
Issued................... 618,949,881 444,512,914 344,238,546 182,756,923 53,775,656 64,492,744
Reinvested............... 11,402,828 10,674,201 5,007,394 3,897,686 854,661 991,188
Redeemed................. (607,379,194) (440,045,094) (314,452,454) (170,321,093) (53,104,273) (68,911,030)
--------------- --------------- ------------- ------------- ------------ ------------
Net increase
(decrease)--Class A
Shares................. 22,973,515 15,142,021 34,793,486 16,333,516 1,526,044 (3,427,098)
=============== =============== ============= ============= ============ ============
CLASS Y SHARES:
Issued................... 513,550,802 337,817,323 59,356,191 4,244,114 10,480,461 3,950,136
Reinvested............... 64,770 7,661 13,934 711 435 502
Redeemed................. (451,096,310) (303,841,055) (57,337,160) (3,937,660) (7,418,335) (3,241,089)
--------------- --------------- ------------- ------------- ------------ ------------
Net increase
(decrease)--Class Y
Shares................. 62,519,262 33,983,929 2,032,965 307,165 3,062,561 709,549
=============== =============== ============= ============= ============ ============
CLASS Q SHARES:
Issued................... 1,671,407,571 1,146,443,973 271,054,101 155,622,865 30,456,641 26,681,957
Reinvested............... 7,980,982 4,382,109 1,585,249 1,253,472 110,983 60,852
Redeemed................. (1,636,982,885) (1,091,816,368) (272,488,734) (133,308,321) (28,388,548) (24,820,752)
--------------- --------------- ------------- ------------- ------------ ------------
Net increase
(decrease)--Class Q
Shares................. 42,405,668 59,009,714 150,616 23,568,016 2,179,076 1,922,057
=============== =============== ============= ============= ============ ============
</TABLE>
Continued
-93-
<PAGE> 95
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1997
4. CAPITAL SHARE TRANSACTIONS, CONTINUED
<TABLE>
<CAPTION>
INTERMEDIATE BOND FUND DIVERSIFIED BOND FUND SMALL COMPANIES VALUE FUND
----------------------------- ----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JULY 31, 1997 JULY 31, 1996 JULY 31, 1997 JULY 31, 1996 JULY 31, 1997 JULY 31, 1996
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASS A SHARES:
Proceeds from shares
issued.................... $ 281,469 $ 468,264 $ 217,749 $ 319,488 $ 51,135,708 $ 8,734,542
Dividends reinvested........ 38,828 28,482 23,639 7,815 1,155,967 278,166
Cost of shares redeemed..... (185,487) (278,948) (103,630) (7,252) (45,078,594) (1,346,500)
------------ ------------ ------------ ------------ ------------- ------------
Net increase (decrease)--
Class A Shares............ $ 134,810 $ 217,798 $ 137,758 $ 320,051 $ 7,213,081 $ 7,666,208
============ ============ ============ ============ ============= ============
CLASS Y SHARES:
Proceeds from shares
issued.................... $ 85,812,901 $ 63,922,643 $ 78,843,370 $ 91,218,940 $ 173,954,696 $ 117,310,514
Dividends reinvested........ 8,548,179 8,007,605 10,155,729 9,024,800 32,449,830 18,872,436
Cost of shares redeemed..... (64,712,883) (52,698,051) (19,685,345) (11,304,575) (150,178,948) (61,655,821)
------------ ------------ ------------ ------------ ------------- ------------
Net increase (decrease)--
Class Y Shares............ $ 29,648,197 $ 19,232,197 $ 69,313,754 $ 88,939,165 $ 56,225,578 $ 74,527,129
============ ============ ============ ============ ============= ============
CLASS C SHARES:
Proceeds from shares
issued.................... $ 100,133 $ 31,389 $ 12,000 $ 9,129 $ 889,580 $ 932,486
Dividends reinvested........ 4,674 5,799 1,263 73 133,207 52,781
Cost of shares redeemed..... (164,236) (60,283) (15) -- (246,154) (90,439)
------------ ------------ ------------ ------------ ------------- ------------
Net increase (decrease)--
Class C Shares............ $ (59,429) $ (23,095) $ 13,248 $ 9,202 $ 776,633 $ 894,828
============ ============ ============ ============ ============= ============
SHARE TRANSACTIONS:
CLASS A SHARES:
Issued...................... 28,351 46,452 21,936 31,704 3,274,764 627,722
Reinvested.................. 3,902 2,833 2,387 778 80,291 21,595
Redeemed.................... (18,736) (27,997) (10,519) (720) (2,881,971) (97,404)
------------ ------------ ------------ ------------ ------------- ------------
Net increase (decrease)--
Class A Shares............ 13,517 21,288 13,804 31,762 473,084 551,913
============ ============ ============ ============ ============= ============
CLASS Y SHARES:
Issued...................... 8,537,873 6,277,182 7,814,340 8,867,817 11,349,203 8,469,326
Reinvested.................. 850,519 787,648 1,003,657 874,181 2,251,766 1,468,821
Redeemed.................... (6,447,967) (5,186,990) (1,954,957) (1,107,314) (9,755,938) (4,421,271)
------------ ------------ ------------ ------------ ------------- ------------
Net increase (decrease)--
Class Y Shares............ 2,940,425 1,877,840 6,863,040 8,634,684 3,845,031 5,516,876
============ ============ ============ ============ ============= ============
CLASS C SHARES:
Issued...................... 10,055 3,129 1,259 969 57,387 67,990
Reinvested.................. 473 581 133 8 9,427 4,166
Redeemed.................... (16,634) (5,906) (2) -- (16,739) (6,763)
------------ ------------ ------------ ------------ ------------- ------------
Net increase (decrease)--
Class C Shares............ (6,106) (2,196) 1,390 977 50,075 65,393
============ ============ ============ ============ ============= ============
</TABLE>
Continued
-94-
<PAGE> 96
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1997
4. CAPITAL SHARE TRANSACTIONS, CONTINUED
<TABLE>
<CAPTION>
INTERNATIONAL OPPORTUNITIES
LARGE COMPANIES VALUE FUND OPTIMIZED STOCK FUND FUND
----------------------------- ----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JULY 31, 1997 JULY 31, 1996 JULY 31, 1997 JULY 31, 1996 JULY 31, 1997 JULY 31, 1996
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASS A SHARES:
Proceeds from shares
issued.................... $ 2,388,118 $ 3,958,952 $ 17,285,606 $ 1,222,446 $ 392,018 $ 2,815,117
Dividends reinvested........ 411,895 163,883 129,092 9,227 19,280 7,129
Cost of shares redeemed..... (1,291,636) (377,056) (14,091,329) (53,231) (1,045,296) (920,350)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease)--
Class A Shares............ $ 1,508,377 $ 3,745,779 $ 3,323,369 $ 1,178,442 $ (633,998) $ 1,901,896
============ ============ ============ ============ ============ ============
CLASS Y SHARES:
Proceeds from shares
issued.................... $ 74,461,035 $ 47,212,764 $ 53,574,673 $ 68,724,893 $ 80,333,744 $ 90,541,293
Dividends reinvested........ 7,470,685 9,349,993 16,004,896 5,756,933 1,523,546 461,408
Cost of shares redeemed..... (55,391,673) (40,083,973) (41,004,083) (21,810,924) (41,655,848) (10,494,579)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease)--
Class Y Shares............ $ 26,540,047 $ 16,478,784 $ 28,575,486 $ 52,670,902 $ 40,201,442 $ 80,508,122
============ ============ ============ ============ ============ ============
CLASS C SHARES:
Proceeds from shares
issued.................... $ 374,469 $ 439,893 $ 366,370 $ 72,298 $ 7,795 $ 18,591
Dividends reinvested........ 47,054 32,959 8,343 1,519 112 20
Cost of shares redeemed..... (158,028) (87,269) (8,122) (2,756) (2,154) --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease)--
Class C Shares............ $ 263,495 $ 385,583 $ 366,591 $ 71,061 $ 5,753 $ 18,611
============ ============ ============ ============ ============ ============
SHARE TRANSACTIONS:
CLASS A SHARES:
Issued...................... 179,238 320,635 1,137,862 100,759 35,650 273,252
Reinvested.................. 32,369 14,377 9,690 774 1,752 674
Redeemed.................... (94,240) (30,203) (924,959) (4,335) (96,075) (89,117)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease)--
Class A Shares............ 117,367 304,809 222,593 97,198 (58,673) 184,809
============ ============ ============ ============ ============ ============
CLASS Y SHARES:
Issued...................... 5,637,651 3,808,985 3,859,490 5,785,352 7,211,384 8,541,811
Reinvested.................. 584,610 821,751 1,207,138 492,000 136,825 43,820
Redeemed.................... (4,159,023) (3,228,601) (2,912,134) (1,799,096) (3,655,702) (983,990)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease)--
Class Y Shares............ 2,063,238 1,402,135 2,154,494 4,478,256 3,692,507 7,601,641
============ ============ ============ ============ ============ ============
CLASS C SHARES:
Issued...................... 28,818 36,992 24,748 6,079 723 1,747
Reinvested.................. 3,769 2,947 630 129 10 2
Redeemed.................... (12,569) (7,195) (572) (232) (198) --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease)--
Class C Shares............ 20,018 32,744 24,806 5,976 535 1,749
============ ============ ============ ============ ============ ============
</TABLE>
Continued
-95-
<PAGE> 97
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1997
4. CAPITAL SHARE TRANSACTIONS, CONTINUED
<TABLE>
<CAPTION>
Allocated Conservative Fund Allocated Balanced Fund
---------------------------------- ----------------------------------
FOR THE PERIOD For the period
FROM MAY 1, from May 1,
YEAR ENDED 1996 THROUGH Year ended 1996 through
JULY 31, 1997 JULY 31, 1996(a) July 31, 1997 July 31, 1996(a)
------------- ---------------- ------------- ----------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASS A SHARES:
Proceeds from shares issued..................... $ 3,160,085 $ 10 $ 10,651,968 $ 10
Dividends reinvested............................ 48,801 -- 119,249 --
Cost of shares redeemed......................... (232,481) -- (721,304) --
----------- ---------- ----------- -----------
Net increase (decrease)--Class A Shares......... $ 2,976,405 $ 10 $ 10,049,913 $ 10
=========== ========== =========== ===========
CLASS Y SHARES:
Proceeds from shares issued..................... $ 8,222,051 $7,728,016 $ 90,942,547 $ 39,938,929
Dividends reinvested............................ 173,496 -- 2,139,600 77,746
Cost of shares redeemed......................... (7,761,365) (109,914) (26,027,199) (750,056)
----------- ---------- ----------- -----------
Net increase (decrease)--Class Y Shares......... $ 634,182 $7,618,102 $ 67,054,948 $ 39,266,619
=========== ========== =========== ===========
SHARE TRANSACTIONS:
CLASS A SHARES:
Issued.......................................... 302,276 1 990,735 1
Reinvested...................................... 4,591 -- 10,788 --
Redeemed........................................ (22,099) -- (66,255) --
----------- ---------- ----------- -----------
Net increase (decrease)--Class A Shares......... 284,768 1 935,268 1
----------- ---------- ----------- -----------
CLASS Y SHARES:
Issued.......................................... 793,215 771,455 8,761,595 3,995,653
Reinvested...................................... 16,350 -- 199,811 7,698
Redeemed........................................ (736,335) (11,098) (2,438,648) (76,460)
----------- ---------- ----------- -----------
Net increase (decrease)--Class Y Shares......... 73,230 760,357 6,522,758 3,926,891
=========== ========== =========== ===========
</TABLE>
- ---------
(a) Period from commencement of operations.
Continued
-96-
<PAGE> 98
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1997
4. CAPITAL SHARE TRANSACTIONS, CONTINUED
<TABLE>
<CAPTION>
Allocated Growth Fund Allocated Aggressive Fund
---------------------------------- ----------------------------------
FOR THE PERIOD For the period
FROM MAY 1, from May 1,
YEAR ENDED 1996 THROUGH Year ended 1996 through
JULY 31, 1997 JULY 31, 1996(a) July 31, 1997 July 31, 1996(a)
------------- ---------------- ------------- ----------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
CLASS A SHARES:
Proceeds from shares issued..................... $ 13,694,496 $ 10 $ 8,261,263 $ 2,010
Dividends reinvested............................ 87,424 -- 15,798 5
Cost of shares redeemed......................... (734,162) -- (393,863) --
----------- ----------- ----------- -----------
Net increase (decrease)--Class A Shares......... $ 13,047,758 $ 10 $ 7,883,198 $ 2,015
=========== =========== =========== ===========
CLASS Y SHARES:
Proceeds from shares issued..................... $ 7,463,873 $ 11,303,541 $ 16,683,318 $ 9,803,652
Dividends reinvested............................ 140,180 1,099 101,772 10,390
Cost of shares redeemed......................... (7,995,895) (162,459) (6,053,844) (1,311,747)
----------- ----------- ----------- -----------
Net increase (decrease)--Class Y Shares......... $ (391,842) $ 11,142,181 $ 10,731,246 $ 8,502,295
=========== =========== =========== ===========
SHARE TRANSACTIONS:
CLASS A SHARES:
Issued.......................................... 1,232,319 1 742,839 196
Reinvested...................................... 7,421 -- 1,277 --
Redeemed........................................ (64,269) -- (33,798) --
----------- ----------- ----------- -----------
Net increase (decrease)--Class A Shares......... 1,175,471 1 710,318 196
=========== =========== =========== ===========
CLASS Y SHARES:
Issued.......................................... 686,235 1,128,551 1,507,630 984,956
Reinvested...................................... 12,577 107 8,939 1,012
Redeemed........................................ (721,112) (16,968) (550,454) (131,480)
----------- ----------- ----------- -----------
Net increase (decrease)--Class Y Shares......... (22,300) 1,111,690 966,115 854,488
=========== =========== =========== ===========
</TABLE>
- ---------
(a) Period from commencement of operations.
5. RELATED PARTY TRANSACTIONS:
Qualivest Capital Management, Inc. ("Qualivest") was the investment adviser
to the Trust during the fiscal year ended July 31, 1997. Qualivest, a
registered investment adviser, was an affiliate of U.S. Bank, which was a
wholly owned subsidiary of U.S. Bancorp. Under the terms of the investment
advisory agreement with the Trust, Qualivest was 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
-97-
<PAGE> 99
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1997
On August 1, 1997, U.S. Bancorp, the ultimate parent company of Qualivest,
merged with First Bank System, Inc., which then changed its name to U.S.
Bancorp. By law, this merger automatically terminated the Trust's investment
advisory agreement with Qualivest. The Trust's Board of Trustees approved an
interim investment advisory agreement, effective August 1, 1997, with First
Bank National Association ("FBNA"), a subsidiary of the "new" U.S. Bancorp.
Under the interim investment advisory agreement, subject to shareholder
approval, FBNA is entitled to receive fees from each of the Funds at the same
contractual and effective fee rates as under the Trust's former investment
advisory agreement with Qualivest. Approval of the interim investment
advisory agreement, and the payment of investment advisory fees to FBNA, will
be considered at a special meeting of Shareholders scheduled to be held on
October 31, 1997.
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 and the
dynamic allocation series. For the year ended July 31, 1997, BISYS received
$1,550,334 of commissions earned on sales of shares of the Trust's variable
net asset value funds and dynamic allocation series, of which $1,385,645 was
reallowed to dealers of the Funds' shares, including $1,383,744 to affiliates
of the Fund. BISYS Fund Services Ohio, Inc.("BISYS Ohio") serves the Funds as
transfer agent and mutual fund accountant.
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 and the dynamic
allocation series. 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
Continued
-98-
<PAGE> 100
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1997
shareholder service assistance in connection with the distribution of Fund
shares. Under a shareholder service plan for Class Y Shares, a Participating
Organization may be compensated at the annual rate of up to 0.25% of the average
daily net assets of the Class Y shares held of record or beneficially by
customers the Participating Organization who are record or beneficial owners of
Class Y Shares. As of July 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.
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 year ended
July 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......................................... $548,995 $519,379 $134,410
DISTRIBUTION & SERVICE FEES:
CLASS Q
Voluntary fee reductions......................................... $405,532 $ 16,588 --
TRANSFER AGENT AND MUTUAL FUND ACCOUNTANT FEES:.................... $201,332 $113,521 $110,141
<CAPTION>
SMALL
INTERMEDIATE DIVERSIFIED COMPANIES
BOND FUND BOND FUND VALUE FUND
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Voluntary fee reductions......................................... $264,221 $671,188 --
TRANSFER AGENT AND MUTUAL FUND ACCOUNTANT FEES:.................... $131,466 $146,854 $238,545
<CAPTION>
LARGE INTERNATIONAL
COMPANIES OPTIMIZED OPPORTUNITIES
VALUE FUND STOCK FUND FUND
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Voluntary fee reductions......................................... $232,689 $552,207 $ 518,920
TRANSFER AGENT AND MUTUAL FUND ACCOUNTANT FEES:.................... $154,225 $179,264 $ 246,163
</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:................ $3,134 $41,345 $ 5,650 $5,586
</TABLE>
Continued
-99-
<PAGE> 101
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1997
6. FEDERAL TAX INFORMATION (UNAUDITED):
The accompanying table below details distributions from long-term capital
gains for the following funds for the year ended July 31, 1997 (amounts in
thousands):
<TABLE>
<CAPTION>
FUND AMOUNT (000)
------------------------------------------------------------------------------------------------- ------------
<S> <C>
Intermediate Bond Fund........................................................................... $ 388
Small Companies Value Fund....................................................................... $ 30,759
Large Companies Value Fund....................................................................... $ 6,990
Optimized Stock Fund............................................................................. $ 10,026
International Opportunities Fund................................................................. $ 48
</TABLE>
The Trust designates the following percentage of distributions eligible for
the dividends received deductions for corporations:
<TABLE>
<CAPTION>
FUND PERCENTAGE
---------------------------------------------------------------------------------------------------- -----------
<S> <C>
Small Companies Value Fund.......................................................................... 46.15%
Large Companies Value Fund.......................................................................... 56.52%
Optimized Stock Fund................................................................................ 72.03%
Allocated Conservative Fund......................................................................... 56.60%
Allocated Balanced Fund............................................................................. 55.49%
Allocated Growth Fund............................................................................... 53.99%
Allocated Aggressive Fund........................................................................... 33.49%
</TABLE>
The International Opportunities Fund elects to pass on the benefits of the
foreign tax credit to its shareholders for the year ended July 31, 1997. The
following information is presented with respect to the election:
Continued
-100-
<PAGE> 102
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1997
<TABLE>
<CAPTION>
GROSS INCOME BY COUNTRY: FOREIGN TAXES BY COUNTRY:
<S> <C> <C>
Australia.......................................... $ 169,613 $ 13,678
Austria............................................ 7,062 2,379
Belgium............................................ 55,485 18,721
Britain............................................ 1,125,590 202,356
Denmark............................................ 24,176 6,964
Finland............................................ 14,707 2,595
France............................................. 180,669 42,021
Germany............................................ 221,991 26,937
Holland............................................ 172,171 27,602
Hong Kong.......................................... 193,396 --
Ireland............................................ 8,099 2,029
Italy.............................................. 118,978 15,153
Japan.............................................. 398,264 65,842
Malaysia........................................... 48,145 18,392
New Zealand........................................ 30,299 5,491
Norway............................................. 13,284 2,344
Singapore.......................................... 24,925 9,191
Spain.............................................. 93,367 24,533
Sweden............................................. 70,369 12,419
Switzerland........................................ 81,917 47,731
U.S. Dollar........................................ 185,039 --
----------- --------
$3,237,546 $ 546,378
====================== ======================
</TABLE>
At July 31, 1997 the following funds had capital loss carryovers which are
available to offset future net realized gains on securities transactions to
the extent provided for in the Internal Revenue Code:
<TABLE>
<CAPTION>
FUND AMOUNT EXPIRES IN YEAR
------------------------------------------------------------------------------------- -------- ----------------
<S> <C> <C>
Tax Free Money Market Fund........................................................... $ 848 2005
Diversified Bond Fund................................................................ $180,829 2005
</TABLE>
Capital loss incurred after October 31, within a Fund's fiscal year is deemed
to arise on the first business day of the following fiscal year for tax
purposes. The Qualivest Diversified Bond Fund and the Qualivest International
Opportunities Fund have incurred and will elect to defer such capital losses
of $30,176 and $521,159 (includes $96,102 foreign currency losses),
respectively.
7. EXEMPT-INTEREST INCOME DESIGNATION (UNAUDITED):
The Trust designates the following exempt-interest income for the taxable
year ended July 31, 1997:
<TABLE>
<CAPTION>
TAX-FREE
MONEY MARKET FUND
-----------------
<S> <C>
Exempt Interest Distributions................................................................ $ 1,023,966
Exempt Distributions Per Share--Class A...................................................... 0.0202
Exempt Distributions Per Share--Class Y...................................................... 0.0231
Exempt Distributions Per Share--Class Q...................................................... 0.0213
</TABLE>
Continued
-101-
<PAGE> 103
QUALIVEST FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JULY 31, 1997
The percentage break-down of the exempt-interest by state for the Tax-Free
Money Market Fund's taxable year ended July 31, 1997 was as follows:
<TABLE>
<S> <C>
Alabama............................................................................................... 1.37%
Alaska................................................................................................ 4.14%
California............................................................................................ 6.71%
Colorado.............................................................................................. 1.04%
Delaware.............................................................................................. 0.34%
Florida............................................................................................... 4.62%
Illinois.............................................................................................. 9.74%
Indiana............................................................................................... 0.78%
Kansas................................................................................................ 1.11%
Louisiana............................................................................................. 1.19%
Maryland.............................................................................................. 3.88%
Massachusetts......................................................................................... 1.53%
Michigan.............................................................................................. 2.40%
Minnesota............................................................................................. 0.16%
Missouri.............................................................................................. 4.20%
Nebraska.............................................................................................. 2.36%
Nevada................................................................................................ 1.63%
New Hampshire......................................................................................... 1.78%
New York.............................................................................................. 2.18%
North Carolina........................................................................................ 1.12%
Ohio.................................................................................................. 0.22%
Oklahoma.............................................................................................. 3.46%
Oregon................................................................................................ 15.68%
Pennsylvania.......................................................................................... 0.02%
South Carolina........................................................................................ 2.85%
Tennessee............................................................................................. 2.72%
Texas................................................................................................. 9.21%
Utah.................................................................................................. 2.53%
Vermont............................................................................................... 2.15%
Virginia.............................................................................................. 3.54%
Washington............................................................................................ 5.34%
-------
100.00%
=======
</TABLE>
-102-
<PAGE> 104
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MONEY MARKET FUND
------------------------------------------------------------------------------------------------------------------
January 10,
1995 to
FOR THE YEAR ENDED FOR THE YEAR ENDED AUGUST 1, 1994 TO July 31,
JULY 31, 1997 JULY 31, 1996 JULY 31, 1995(a) 1995(a)
---------------------------------- ---------------------------------- -------------------- -----------
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.... 0.046 0.050 0.050 0.047 0.051 0.051 0.049 0.053 0.031
-------- -------- -------- -------- -------- -------- -------- ------- -------
Distributions
Net
investment
income.... (0.046) (0.050) (0.050) (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...... 4.72% 5.13% 5.13% 4.79% 5.20% 5.20% 4.97% 5.40% 3.13%(b)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at
end of
period
(000)....... $254,793 $162,987 $156,763 $231,819 $100,468 $114,358 $216,679 $66,484 $55,346
Ratio of
expenses to
average net
assets...... 0.89% 0.49% 0.49% 0.91% 0.51% 0.51% 0.79% 0.38% 0.54%(c)
Ratio of net
investment
income to
average net
assets...... 4.62% 5.02% 5.02% 4.68% 5.06% 5.04% 5.09% 5.31% 5.57%(c)
Ratio of
expenses to
average net
assets*..... 0.99% 0.59% 0.84% 1.01% 0.61% 0.86% 1.04% 0.67% 0.90%(c)
Ratio of net
investment
income to
average net
assets*..... 4.52% 4.92% 4.67% 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.
-103-
<PAGE> 105
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S. TREASURY MONEY MARKET FUND
--------------------------------------------------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED JANUARY 11, 1995 TO
JULY 31, 1997 JULY 31, 1996 JULY 31, 1995(a)
-------------------------------- ------------------------------- ---------------------------------
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............ 0.045 0.049 0.045 0.046 0.050 0.048 0.028 0.030 0.029
-------- -------- -------- -------- -------- -------- -------- ------- -------
Distributions
Net investment
income............ (0.045) (0.049) (0.045) (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......... 4.64% 5.06% 4.85% 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)........ $124,550 $ 2,354 $33,378 $89,756 $ 321 $33,227 $73,423 $ 14 $ 9,659
Ratio of expenses to
average net
assets.............. 0.67% 0.27% 0.47% 0.72% 0.31% 0.51% 0.81%(c) 0.40%(c) 0.61%(c)
Ratio of net
investment income to
average net
assets.............. 4.55% 4.95% 4.75% 4.63% 4.86% 4.81% 5.02%(c) 5.56%(c) 5.25%(c)
Ratio of expenses to
average net
assets*............. 1.02% 0.62% 0.87% 1.07% 0.66% 0.91% 1.17%(c) 0.75%(c) 1.01%(c)
Ratio of net
investment income to
average net
assets*............. 4.20% 4.60% 4.35% 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.
-104-
<PAGE> 106
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TAX-FREE MONEY MARKET FUND
-----------------------------------------------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED JANUARY 9, 1995 TO
JULY 31, 1997 JULY 31, 1996 JULY 31, 1995(a)
------------------------------- ------------------------------- ---------------------------------
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............. 0.027 0.031 0.029 0.028 0.032 0.029 0.017 0.019 0.017
-------- -------- -------- -------- -------- -------- -------- ------- -------
Distributions
Net investment
income............. (0.027) (0.031) (0.029) (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.......... 2.76% 3.17% 2.92% 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)......... $31,668 $ 3,786 $ 5,351 $30,143 $ 723 $ 3,172 $33,569 $ 14 $ 1,250
Ratio of expenses to
average net assets... 0.88% 0.48% 0.73% 0.89% 0.41% 0.72% 1.00%(c) 0.59%(c) 0.85%(c)
Ratio of net
investment income to
average net assets... 2.73% 3.13% 2.88% 2.78% 2.92% 2.88% 2.98%(c) 3.38%(c) 3.19%(c)
Ratio of expenses to
average net
assets*.............. 1.23% 0.83% 1.08% 1.25% 0.79% 1.08% 1.36%(c) 0.94%(c) 1.21%(c)
Ratio of net
investment income to
average net
assets*.............. 2.38% 2.78% 2.53% 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.
-105-
<PAGE> 107
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERMEDIATE BOND FUND
----------------------------------------------------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED AUGUST 1, 1994 TO
JULY 31, 1997 JULY 31, 1996 JULY 31, 1995(a)
-------------------------------- -------------------------------- --------------------------------
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.............. 0.55 0.57 0.29 0.55 0.56 0.44 0.53 0.64 0.46
Net realized and
unrealized gains
(losses) from
investments....... 0.20 0.20 0.38 (0.16) (0.15) (0.10) 0.11 0.14 0.05
-------- -------- -------- -------- -------- -------- -------- ------- -------
Total from
Investment
Activities...... 0.75 0.77 0.67 0.39 0.41 0.34 0.64 0.78 0.51
-------- -------- -------- -------- -------- -------- -------- ------- -------
Distributions
Net investment
income............ (0.55) (0.57) (0.47) (0.54) (0.56) (0.46) (0.58) (0.62) (0.55)
Net realized
gains............. (0.03) (0.03) (0.03) -- -- -- -- -- --
-------- -------- -------- -------- -------- -------- -------- ------- -------
Total
Distributions... (0.58) (0.60) (0.50) (0.54) (0.56) (0.46) (0.58) (0.62) (0.55)
-------- -------- -------- -------- -------- -------- -------- ------- -------
NET ASSET VALUE, END
OF PERIOD........... $10.08 $ 10.18 $10.01 $ 9.91 $ 10.01 $ 9.84 $10.06 $ 10.16 $ 9.96
======== ======== ======== ======== ======== ======== ======== ======= =======
Total
Return -- excluding
sales and redemption
charges............. 7.73% 7.92% 6.91% 3.94% 4.15% 3.49% 6.67% 8.09% 5.42%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........ $ 732 $190,851 $ 51 $ 586 $158,174 $ 110 $ 381 $141,399 $ 133
Ratio of expenses to
average net
assets.............. 0.97% 0.72% 1.72% 1.01% 0.76% 1.76% 0.80% 0.41% 1.59%
Ratio of net
investment income to
average net
assets.............. 5.47% 5.72% 4.72% 5.31% 5.57% 4.58% 5.94% 6.31% 5.18%
Ratio of expenses to
average net
assets*............. 1.12% 0.87% 1.87% 1.16% 0.91% 1.91% 1.17% 0.91% 1.92%
Ratio of net
investment income to
average net
assets*............. 5.32% 5.57% 4.57% 5.16% 5.42% 4.43% 5.57% 5.81% 4.85%
Portfolio Turnover
(b)................. 123% 123% 123% 66% 66% 66% 107% 107% 107%
</TABLE>
- ---------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
See notes to financial statements.
-106-
<PAGE> 108
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
DIVERSIFIED BOND FUND
-----------------------------------------------------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED MAY 2, 1995 TO
JULY 31, 1997 JULY 31, 1996 JULY 31, 1995(a)
-------------------------------- -------------------------------- ---------------------------------
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........... 0.55 0.59 0.46 0.55 0.58 0.48 0.01 0.15 0.01
Net realized and
unrealized gains
(losses) from
investments...... 0.38 0.40 0.37 (0.16) (0.13) (0.60) 0.30 0.31 0.33
-------- -------- -------- -------- -------- -------- -------- ------- -------
Total from
Investment
Activities..... 0.93 0.99 0.83 0.39 0.45 (0.12) 0.31 0.46 0.34
-------- -------- -------- -------- -------- -------- -------- ------- -------
Distributions
Net investment
income........... (0.56) (0.59) (0.49) (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... (0.63) (0.66) (0.56) (0.71) (0.74) (0.66) (0.13) (0.13) (0.12)
-------- -------- -------- -------- -------- -------- -------- ------- -------
NET ASSET VALUE, END
OF PERIOD.......... $10.16 $ 10.37 $ 9.71 $ 9.86 $ 10.04 $ 9.44 $10.18 $ 10.33 $10.22
======== ======== ======== ======== ======== ======== ======== ======= =======
Total
Return -- excluding
sales and
redemption
charges............ 9.80% 10.20% 9.03% 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)....... $ 463 $260,536 $ 23 $ 313 $183,255 $ 9 ** $99,347 **
Ratio of expenses to
average net
assets............. 0.82% 0.57% 1.64% 0.85% 0.61% 1.58% 0.95%(c) 0.70%(c) 1.70%(c)
Ratio of net
investment income
to average net
assets............. 5.65% 5.90% 4.82% 5.48% 5.72% 4.81% 5.66%(c) 5.91%(c) 4.91%(c)
Ratio of expenses to
average net
assets*............ 1.12% 0.87% 1.94% 1.15% 0.91% 1.82% 1.25%(c) 1.00%(c) 2.00%(c)
Ratio of net
investment income
to average net
assets*............ 5.35% 5.60% 4.52% 5.18% 5.42% 4.57% 5.36%(c) 5.61%(c) 4.61%(c)
Portfolio Turnover
(d)................ 24% 24% 24% 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.
-107-
<PAGE> 109
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SMALL COMPANIES VALUE FUND
----------------------------------------------------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED AUGUST 1, 1994 TO
JULY 31, 1997 JULY 31, 1996 JULY 31, 1995(a)
-------------------------------- -------------------------------- --------------------------------
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)....... 0.01 0.04 (0.06) 0.04 0.06 (0.03) 0.09 0.13 (0.03)
Net realized and
unrealized gains
(losses) from
investments....... 5.43 5.43 5.29 1.83 1.81 1.74 3.29 3.30 3.29
-------- -------- -------- -------- -------- -------- -------- ------- -------
Total from
Investment
Activities...... 5.44 5.47 5.23 1.87 1.87 1.71 3.38 3.43 3.26
-------- -------- -------- -------- -------- -------- -------- ------- -------
Distributions
Net investment
income.............. (0.01) (0.04) -- (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) (1.56) (1.52) (1.15) (1.17) (1.11) (0.15) (0.17) (0.12)
-------- -------- -------- -------- -------- -------- -------- ------- -------
NET ASSET VALUE, END
OF PERIOD........... $ 17.86 $ 17.87 $ 17.45 $ 13.95 $ 13.96 $ 13.74 $ 13.23 $ 13.26 $ 13.14
======== ======== ======== ======== ======== ======== ======== ======= =======
Total
Return -- excluding
sales and redemption
charges............. 41.71% 41.96% 40.69% 14.93% 14.94% 13.79% 34.29% 34.76% 33.02%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........ $19,999 $449,988 $ 2,430 $ 9,022 $297,793 $ 1,225 $ 1,257 $209,626 $ 312
Ratio of expenses to
average net assets.. 1.31% 1.06% 2.06% 1.33% 1.08% 2.08% 1.11% 0.60% 1.85%
Ratio of net
investment income to
average net
assets.............. 0.01% 0.25% -0.74% 0.14% 0.41% -0.60% 0.63% 1.20% -0.10%
Ratio of expenses to
average net
assets*............. 1.31% 1.06% 2.06% 1.33% 1.08% 2.08% 1.38% 1.12% 2.13%
Ratio of net
investment income to
average net
assets*............. 0.01% 0.25% -0.74% 0.14% 0.41% -0.60% 0.36% 0.68% -0.38%
Portfolio Turnover
(b)................. 29% 29% 29% 34% 34% 34% 37% 37% 37%
Average commission
rate paid (c)....... $0.0008 $ 0.0008 $0.0008 $0.0398 $ 0.0398 $0.0398
</TABLE>
- ---------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
(c) Represents the dollar amount of commissions paid on portfolio transactions
divided by the total number of shares purchased and sold for which
commissions were charged and is calculated on the basis of the Fund 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.
-108-
<PAGE> 110
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LARGE COMPANIES VALUE FUND
---------------------------------------------------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED AUGUST 1, 1994 TO
JULY 31, 1997 JULY 31, 1996 JULY 31, 1995(a)
-------------------------------- -------------------------------- -------------------------------
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............... 0.16 0.20 0.07 0.20 0.21 0.13 0.18 0.24 0.12
Net realized and
unrealized gains
(losses) from
investments........ 4.80 4.83 4.72 0.71 0.75 0.69 2.23 2.22 2.11
-------- -------- -------- -------- -------- -------- -------- ------- -------
Total from
Investment
Activities....... 4.96 5.03 4.79 0.91 0.96 0.82 2.41 2.46 2.23
-------- -------- -------- -------- -------- -------- -------- ------- -------
Distributions
Net investment
income............... (0.16) (0.20) (0.07) (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.... (0.95) (0.99) (0.86) (1.19) (1.21) (1.13) (0.21) (0.23) (0.19)
-------- -------- -------- -------- -------- -------- -------- ------- -------
NET ASSET VALUE, END
OF PERIOD............ $ 15.93 $ 16.02 $ 15.66 $ 11.92 $ 11.98 $ 11.73 $ 12.20 $ 12.23 $ 12.04
======== ======== ======== ======== ======== ======== ======== ======= =======
Total
Return -- excluding
sales and redemption
charges.............. 43.71% 44.08% 42.70% 8.17% 8.57% 7.46% 24.61% 25.04% 22.78%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)......... $ 8,104 $184,035 $ 1,179 $ 4,666 $112,908 $ 648 $ 1,056 $98,127 $ 271
Ratio of expenses to
average net assets... 1.15% 0.90% 1.90% 1.18% 0.93% 1.93% 1.04% 0.53% 1.78%
Ratio of net
investment income to
average net assets... 1.18% 1.43% 0.43% 1.52% 1.77% 0.77% 1.70% 2.19% 0.91%
Ratio of expenses to
average net assets*.. 1.30% 1.05% 2.05% 1.33% 1.08% 2.08% 1.38% 1.11% 2.13%
Ratio of net
investment income to
average net
assets*.............. 1.03% 1.28% 0.28% 1.37% 1.62% 0.62% 1.36% 1.61% 0.56%
Portfolio Turnover
(b).................. 40% 40% 40% 35% 35% 35% 48% 48% 48%
Average commission
rate paid (c)........ $0.0013 $ 0.0013 $0.0013 $0.0574 $ 0.0574 $0.0574
</TABLE>
- ---------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
(c) Represents the dollar amount of commissions paid on portfolio transactions
divided by the total number of shares purchased and sold for which
commissions were charged and is calculated on the basis of the Fund 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.
-109-
<PAGE> 111
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OPTIMIZED STOCK FUND
------------------------------------------------------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED MAY 2, 1995 TO
JULY 31, 1997 JULY 31, 1996 JULY 31, 1995(a)
-------------------------------- -------------------------------- ----------------------------------
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............ $ 12.10 $ 12.12 $ 12.05 $ 10.94 $ 10.95 $ 10.92 $10.00 $ 10.00 $10.00
-------- -------- -------- -------- -------- -------- -------- ------- -------
Investment
Activities
Net investment
income.......... 0.18 0.20 0.10 0.19 0.21 0.11 0.03 0.06 0.03
Net realized and
unrealized gains
(losses) from
investments..... 5.89 5.91 5.84 1.36 1.37 1.37 0.93 0.91 0.91
-------- -------- -------- -------- -------- -------- -------- ------- -------
Total from
Investment
Activities.... 6.07 6.11 5.94 1.55 1.58 1.48 0.96 0.97 0.94
-------- -------- -------- -------- -------- -------- -------- ------- -------
Distributions
Net investment
income.......... (0.18) (0.20) (0.09) (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... (0.95) (0.97) (0.86) (0.39) (0.41) (0.35) (0.02) (0.02) (0.02)
-------- -------- -------- -------- -------- -------- -------- ------- -------
NET ASSET VALUE,
END OF PERIOD..... $ 17.22 $ 17.26 $ 17.13 $ 12.10 $ 12.12 $ 12.05 $10.94 $ 10.95 $10.92
======== ======== ======== ======== ======== ======== ======== ======= =======
Total
Return -- excluding
sales and
redemption
charges........... 52.52% 52.93% 51.43% 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)... $ 5,561 $348,966 $ 559 $ 1,214 $219,014 $ 94 $ 35 $148,782 $ 20
Ratio of expenses
to average net
assets............ 0.81% 0.56% 1.56% 0.84% 0.60% 1.59% 0.91%(c) 0.68%(c) 1.68%(c)
Ratio of net
investment income
to average net
assets............ 1.16% 1.43% 0.36% 1.40% 1.76% 0.70% 1.03%(c) 2.38%(c) 1.13%(c)
Ratio of expenses
to average net
assets*........... 1.01% 0.76% 1.76% 1.04% 0.80% 1.79% 1.10%(c) 0.88%(c) 1.88%(c)
Ratio of net
investment income
to average net
assets*........... 0.96% 1.23% 0.16% 1.20% 1.56% 0.50% 0.85%(c) 2.18%(c) 0.92%(c)
Portfolio Turnover
(d)............... 39% 39% 39% 56% 56% 56% 5% 5% 5%
Average commission
rate paid (e)..... $0.0008 $ 0.0008 $0.0008 $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 Fund 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.
-110-
<PAGE> 112
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERNATIONAL OPPORTUNITIES FUND
---------------------------------------------------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED JULY 3, 1995 TO
JULY 31, 1997 JULY 31, 1996 JULY 31, 1995(a)
-------------------------------- -------------------------------- ---------------------------------
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)..... 0.10 0.13 0.01 0.07 0.09 0.03 -- 0.01 (0.01)
Net realized and
unrealized gains
(losses) from
investments...... 1.70 1.70 1.69 0.17 0.18 0.17 0.45 0.47 0.47
-------- -------- -------- -------- -------- -------- -------- ------- -------
Total from
Investment
Activities..... 1.80 1.83 1.70 0.24 0.27 0.20 0.45 0.48 0.46
-------- -------- -------- -------- -------- -------- -------- ------- -------
Distributions
Net investment
income........... (0.09) (0.12) (0.02) (0.05) (0.06) (0.03) -- -- --
Net realized
gains............ (0.02) (0.02) (0.02) -- -- -- -- -- --
In excess of
realized gains... (.01) (.01) (.01)
-------- -------- -------- -------- -------- -------- -------- ------- -------
Total
Distributions... (0.12) (0.15) (0.05) (0.05) (0.06) (0.03) -- -- --
-------- -------- -------- -------- -------- -------- -------- ------- -------
NET ASSET VALUE, END
OF PERIOD.......... $ 12.32 $ 12.37 $ 12.28 $ 10.64 $ 10.69 $ 10.63 $ 10.45 $ 10.48 $ 10.46
======== ======== ======== ======== ======== ======== ======== ======= =======
Total
Return -- excluding
sales and
redemption
charges............ 17.03% 17.24% 16.09% 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)....... $ 1,577 $210,538 $ 28 $ 1,986 $142,478 $ 19 $ 20 $60,073 **
Ratio of expenses to
average net
assets............. 0.98% 0.73% 1.73% 1.06% 0.81% 1.78% 1.40%(c) 1.18%(c) 2.18%(c)
Ratio of net
investment income
to average net
assets............. 0.90% 1.15% 0.15% 0.84% 1.18% 0.41% 0.23%(c) 1.32%(c) 0.32%(c)
Ratio of expenses to
average net
assets*............ 1.28% 1.03% 2.03% 1.35% 1.10% 2.06% 1.54%(c) 1.39%(c) 2.39%(c)
Ratio of net
investment income
to average net
assets*............ 0.60% 0.85% -0.15% 0.55% 0.89% 0.13% 0.09%(c) 1.12%(c) 0.12%(c)
Portfolio Turnover
(d)................ 3% 3% 3% 6% 6% 6% 0% 0% 0%
Average commission
rate paid (e)...... $0.0000 $ 0.0000 $0.0000 $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 Fund 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.
-111-
<PAGE> 113
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ALLOCATED CONSERVATIVE FUND
-------------------------------------------------
FOR THE YEAR ENDED FROM MAY 1, 1996 TO
JULY 31, 1997 JULY 31, 1996(a)
--------------------- ---------------------
CLASS A CLASS Y CLASS A CLASS Y
------- ------- ------- -------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................................. $ 9.95 $ 9.96 $10.00 $10.00
-------- -------- -------- --------
Investment Activities
Net investment income............................................... 0.41 0.39 0.10 0.08
Net realized and unrealized (losses) from investments............... 1.28 1.32 (0.12) (0.09)
-------- -------- -------- --------
Total from Investment Activities.................................. 1.69 1.71 (0.02) (0.01)
-------- -------- -------- --------
Distributions
Net investment income............................................... (0.42) (0.44) (0.03) (0.03)
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD........................................ $11.22 $11.23 9.95 $ 9.96
======== ======== ======== ========
Total return--excluding sales charge.................................. 17.47% 17.65% -0.18%(b) -0.08%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)..................................... $3,195 $9,359 * $7,573
Ratio of expenses to average net assets............................... 0.63% 0.38% 0.00%(c) 0.34%(c)
Ratio of net investment income to average net assets.................. 3.54% 3.79% 3.96%(c) 3.77%(c)
Portfolio Turnover (d)................................................ 66% 66% 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.
-112-
<PAGE> 114
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ALLOCATED BALANCED FUND
--------------------------------------------------
FOR THE YEAR ENDED FROM MAY 1, 1996 TO
JULY 31, 1997 JULY 31, 1996(a)
---------------------- ---------------------
CLASS A CLASS Y CLASS A CLASS Y
------- -------- ------- -------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.............................. $ 9.74 $ 9.75 $10.00 $ 10.00
-------- -------- -------- --------
Investment Activities
Net investment income........................................... 0.29 0.29 0.08 0.06
Net realized and unrealized
(losses) from investments..................................... 2.25 2.15 (0.31) (0.28)
-------- -------- -------- --------
Total from Investment Activities.............................. 2.54 2.44 (0.23) (0.22)
-------- -------- -------- --------
Distributions
Net investment income........................................... (0.30) (0.32) (0.03) (0.03)
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD.................................... $ 11.98 $ 11.87 $ 9.74 $ 9.75
======== ======== ======== ========
Total return--excluding sales charge.............................. 26.51% 25.46% -2.31%(b) -2.21%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)................................. $11,202 $124,019 * $38,283
Ratio of expenses to average net assets........................... 0.48% 0.23% 0.00%(c) 0.22%(c)
Ratio of net investment income to average net assets.............. 2.36% 2.77% 3.20%(c) 2.67%(c)
Portfolio Turnover (d)............................................ 27% 27% 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.
-113-
<PAGE> 115
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ALLOCATED GROWTH FUND
--------------------------------------------------
FOR THE YEAR ENDED FROM MAY 1, 1996 TO
JULY 31, 1997 JULY 31, 1996(a)
---------------------- ---------------------
CLASS A CLASS Y CLASS A CLASS Y
------- -------- ------- -------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.............................. $ 9.74 $ 9.72 $10.00 $ 10.00
-------- -------- -------- --------
Investment Activities
Net investment income........................................... 0.16 0.19 0.05 0.04
Net realized and unrealized (losses) from investments........... 2.97 2.84 (0.28) (0.29)
-------- -------- -------- --------
Total from Investment Activities.............................. 3.13 3.03 (0.23) (0.25)
-------- -------- -------- --------
Distributions
Net investment income........................................... (0.17) (0.19) (0.03) (0.03)
Net realized gains.............................................. (0.01) (0.01) -- --
-------- -------- -------- --------
Total Distributions........................................... (0.18) (0.20) -- --
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD.................................... $ 12.69 $ 12.55 $ 9.74 $ 9.72
======== ======== ======== ========
Total return--excluding sales charge.............................. 32.42% 31.46% -2.31%(b) -2.52%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)................................. $14,921 $ 13,668 $ * $10,801
Ratio of expenses to average net assets........................... 0.54% 0.29% 0.00%(c) 0.31%(c)
Ratio of net investment income to average net assets.............. 1.28% 1.72% 1.99%(c) 1.58%(c)
Portfolio Turnover (d)............................................ 34% 34% 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.
-114-
<PAGE> 116
QUALIVEST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ALLOCATED AGGRESSIVE FUND
-------------------------------------------------
FOR THE YEAR ENDED FROM MAY 1, 1996 TO
JULY 31, 1997 JULY 31, 1996(a)
--------------------- ---------------------
CLASS A CLASS Y CLASS A CLASS Y
------- ------- ------- -------
<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)...................................... 0.07 0.09 (0.01) 0.02
Net realized and unrealized (losses) from investments............. 3.40 3.40 (0.33) (0.40)
-------- -------- -------- --------
Total from Investment Activities................................ 3.47 3.49 (0.34) (0.38)
-------- -------- -------- --------
Distributions
Net investment income............................................. (0.07) (0.09) (0.02) (0.02)
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD...................................... $13.04 $ 13.00 $ 9.64 $ 9.60
======== ======== ======== ========
Total return--excluding sales charge................................ 36.14% 36.56% -3.38%(b) -3.78%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)................................... $9,265 $23,663 $ 2 $ 8,207
Ratio of expenses to average net assets............................. 0.52% 0.28% 0.57%(c) 0.35%(c)
Ratio of net investment income to average net assets................ 0.38% 0.74% -0.30%(c) 0.70%(c)
Portfolio Turnover (d).............................................. 28% 28% 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.
-115-
<PAGE> 117
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 118
[LOGO]
MUTUAL FUNDS
- --------------------------------------------------------------------------------
QUALIVEST MUTUAL FUNDS
3435 Stelzer Road QUALIVEST
Columbus, Ohio 43219-3035 ANNUAL
REPORT
INVESTMENT ADVISOR JULY 31, 1997
Qualivest Capital Management, Inc.
P.O. Box 2758 - Small Companies Value Fund
Portland, Oregon 97208 - International Opportunities Fund
- Large Companies Value Fund
ADMINISTATOR & DISTRIBUTOR - Optimized Stock Fund
BISYS Fund Services - Diversified Stock Fund
3435 Stelzer Road - Intermediate Bond Fund
Columbus, Ohio 43219-3035 - Money Market Fund
- Tax-Free Money Market Fund
LEGAL COUNSEL - U.S. Treasury Money Market Fund
Dechert Price & Rhoads
1500 K Street, N.W. - Allocated Conservative Fund
Washington, D.C. 20005 - Allocated Balanced Fund
- Allocated Growth Fund
AUDITORS - Allocatd Aggresive Fund
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 prospectus investors in
the Funds unless preceded or accompanied
by a prospectus. To obtain a prospectus MUTUAL FUNDS:
for any of the Qualivest Mutual Funds, - Are not insured by the FDIC
call 1-800-743-8637. The prospectus - Are not deposits or other
contains more complete information, obligations of, or guaranteed by,
including charges and expenses. Please any bank
read it carefully before you invest or - Are subject to investment risk,
send money. including the possible loss of
the principal amount invested
For imformation about these Funds or - May involve sales charges and
your account, contact you investment other fees
representative, or call 1-800-743-8637.
[QUALIVEST MUTUAL FUNDS LOGO]
