Annual Report
June 30, 1996
Mini-Cap Fund
Value + Growth Fund
Balanced Fund
J U R I K A & V O Y L E S
Fund Group
<PAGE>
TABLE OF CONTENTS
Letter to Shareholders . . . . . . . . . . . . . . . . .. . . . . . . . . 1
Performance
Mini-Cap Fund . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . 2
Value + Growth Fund . . . . . . . . . . . . . . . . . .. . . . . . . . . 4
Balanced Fund . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . 6
Schedules of Investments . . . . . . . . . . . . . . . .. . . . . . . . . 8
Statements of Assets and Liabilities . . . . . . . . . .. . . . . . . . . 19
Statements of Operations . . . . . . . . . . . . . . . .. . . . . . . . . 20
Statements of Changes in Net Assets . . . . . . . . . . .. . . . . . . . . 21
Financial Highlights . . . . . . . . . . . . . . . . . .. . . . . . . . . 24
Notes to Financial Statements . . . . . . . . . . . . . .. . . . . . . . . 26
<PAGE>
LETTER TO SHAREHOLDERS
Dear Shareholder:
This report provides a review and outlook, along with a summary of key
financial and performance information, for each of the Funds of the Jurika &
Voyles Fund Group for the year ending June 30, 1996.
As always, we stand ready to serve you. If you have any questions,
please do not hesitate to call our Investor Center at (800) JV-INVST
(800-584-6878).
Thank you for your continued support.
Very truly yours,
/s/ William K. Jurika /s/ Glenn C. Voyles
William K. Jurika Glenn C. Voyles
President Chairman
Jurika & Voyles, Inc. Jurika & Voyles, Inc.
<PAGE>
DIRECTORY OF FUNDS' SERVICE PROVIDERS
Investment Adviser
Jurika & Voyles, Inc., 1999 Harrison Street, Suite 700, Oakland, CA 94612
Distributor
First Fund Distributors, Inc., 4455 E. Camelback Road, Suite 261-E, Phoenix, AZ
85018
Administrator
Investment Company Administration Corp., 2025 E. Financial Way, Suite 101,
Glendora, CA 91741
Custodian, Transfer Agent and Fund Accountant
State Street Bank & Trust Co., 1776 Heritage, Quincy, MA 02171
Legal Counsel
Heller, Ehrman, White & McAuliffe, 333 Bush Street, San Francisco, CA 94104
Auditor
McGladrey & Pullen, LLP, 555 Fifth Avenue, 8th Floor, New York, NY 10017
This report is authorized for distribution to shareholders and to others only
when preceded or accompanied by a current prospectus for Jurika & Voyles Fund
Group. Distributor: First Fund Distributors, Inc.
<PAGE>
PERFORMANCE
Mini-Cap Fund
Objective: The Jurika & Voyles Mini-Cap Fund seeks to provide investors
with maximum long-term capital appreciation. This is achieved by investing
primarily in the common stock of quality companies with small market
capitalizations that offer current value and significant future growth
potential. Emphasis is on companies with market capitalizations under $500
million, lower than market average Price to Earnings (P/E) ratios and higher
than market average earnings growth rates and returns on equity (ROE). The Fund
will build concentrated positions in industry sectors where Jurika & Voyles sees
significant long-term investment opportunities.
Review: The Mini-Cap Fund returned 20.89% for the first half of 1996
versus 10.40% for the Russell 2000 Index. The Fund's performance benefited from
significant concentrations in consumer -- both services and cyclicals -- and
energy and a lightened weighting in technology. The best performing stocks
include Central Garden & Pet, a distributor of lawn and garden and pet supplies;
Anchor Gaming, a developer and operator of gaming machines; National Education,
a vocational training and educational publishing company; and Varco
International, a drilling equipment and flow line device manufacturer.
In the Mini-Cap Fund, we seek to identify investment opportunities from
both a value and growth perspective. We limit the market risk with the low P/E
requirement and limit the financial risk by selecting companies with strong
balance sheets and cash flows. We seek to avoid companies with high perceived
risk from cyclicality, high P/E valuation, debt levels over 50%, and weak
operating histories. Our analysis then focuses on the business risk utilizing a
fundamental, stock-by-stock research selection process. Since smaller companies
tend to benefit more from internally driven dynamics, the early recognition of
an undiscovered growth catalyst, new market opportunity, utilization of
technology to enhance leadership, niche positioning or cost leverage should help
us participate in stocks appreciating from rising profits and multiple
expansion. This approach helps to identify investments which can perform well in
weak as well as strong markets.
Economic Outlook: Our economic outlook calls for moderate growth in
economic output and inflation. The most recent consumer debt and default
statistics indicate to us that the consumer is overextended and is likely to
retrench. Industrial companies are, in general, experiencing better successes.
Although the bond market appears to reflect the expectation that the Federal
Reserve will raise rates 25 basis points during the summer, we believe the
slowing consumer spending will allow the Fed to leave interest rates unchanged.
By and large, inflation remains in check.
Current Positioning: Our positioning has become increasingly defensive
since mid-May when we started to raise cash. Our caution is derived from
valuation concerns, after parabolic run-ups in many stocks, rather than concerns
over the economy, monetary or fiscal policy. Given this scenario, and our
economic outlook, themes that we expect to do well in the second half of 1996
include real estate investment trusts, value based consumer products and
retailers, California recovery, technology based oil and gas exploration, oil
services companies with pricing power, and industrial consolidation plays.
<PAGE>
Comparison of Change in Value of a $10,000 Investment in Jurika & Voyles
Mini-Cap Fund with Lipper Small Company Fund Index and Russell 2000 Index
This graph is furnished to you in accordance with SEC regulations. It
compares a $10,000 investment in Jurika & Voyles Mini-Cap Fund with a similar
investment in the Lipper Small Company Fund Index and the Russell 2000 Index
from the inception of the Fund on September 30, 1994 to the end of the Fund's
annual period on June 30, 1996. For purposes of the graph and the Fund's
Annualized Return Since Inception and One Year Total Return, it has been assumed
that all recurring fees (including management fees) were deducted and all
distributions were reinvested.
Total return of the Fund reflects the fact that all fees and expenses,
in excess of certain expense limits specified in the investment management
agreement, have been assumed by Jurika & Voyles, Inc.
Lipper Small Company Fund Index is an unmanaged, net asset value
weighted index of 30 mutual funds that invest primarily in companies with small
market capitalization. Russell 2000 Index is a widely regarded small-cap index
of the 2,000 smallest securities of the Russell 3000 Index which comprises the
3,000 largest U.S. securities as determined by total market capitalization.
Each index reflects the reinvestment of income dividends and capital
gains distributions, if any, but does not reflect fees, brokerage commissions,
or other expenses of investing. All results are historical. Past performance is
no guarantee of future results.
<PAGE>
PERFORMANCE
Value + Growth Fund
Objective: The Jurika & Voyles Value + Growth Fund seeks long-term
capital appreciation. This Fund invests primarily in the common stock of quality
companies of all market capitalizations that offer current value and significant
future growth potential. Emphasis is on companies with lower than market average
Price to Earnings (P/E) ratios and higher than market average earnings growth
rates and returns on equity (ROE). The Fund will build concentrated positions in
industry sectors where Jurika & Voyles sees significant long term investment
opportunities.
Review: The Value + Growth Fund returned 6.45% for the first half of
1996 versus 10.08% for the S&P 500. We believe that this performance dispersion
is more the result of short-term market sentiment towards the types of stocks in
the portfolio than any significant problems with the companies held. In fact, we
remain extremely positive about the long-term investment potential of the
companies held in the Fund.
The Fund maintains significant concentrations in the technology,
managed healthcare, and financial services sectors. In both absolute terms, and
relative to the S&P 500 Index, technology was a particularly weak sector in the
first quarter, an extremely strong performer in April and May, and very weak
again in June. Managed healthcare companies were solid performers through May,
but also very weak in June. The large capitalization financial services stocks
in the portfolio have been volatile but strong performers year-to-date, while
the smaller capitalization holdings have not.
These wide swings in performance were the result of three significant
market forces at work: an excess of demand for stocks leading to higher overall
market valuation levels and, therefore, greater volatility; uncertainty about
the economy leading to shifts between more defensive investments in large
capitalization "blue chip" stocks and more aggressive investments in small to
mid capitalization stocks; and an emphasis on short-term earnings and stock
price "momentum." We believe that these swings may continue through the end of
the year, as investors' faith is tested by continued uncertainty about the
economy, unrealistic expectations for future growth, and excessive valuation
levels in the market.
Wide swings in market prices are tell-tale signs of a market that is
both irrational and overvalued. While these factors can create short-term
volatility similar to that experienced year-to-date, they can also create some
extremely attractive investment opportunities as the stocks of many truly
wonderful and healthy businesses are summarily disposed. Our goal, as always, is
not to time the market, but rather to identify companies that offer significant
long-term promise for business growth that we can purchase at reasonable prices.
Economic Outlook: Our outlook calls for moderate growth in economic
output and inflation. The most recent consumer debt and default statistics
indicate to us that the consumer is overextended and is likely to retrench.
Industrial companies are, in general, experiencing better success. Although the
bond market appears to reflect the expectation that the Federal Reserve will
raise interest rates by 25 basis points during the summer, we believe that
slowing consumer spending will allow the Fed to leave interest rates unchanged.
By and large, inflation remains in check.
Current Positioning: The Value + Growth Fund is now positioned with
slightly higher cash levels, the result of selling off or reducing a number of
existing holdings, particularly in the technology area, to lock in gains, or
eliminate problem positions. Recent sales include Tandem, National
Semiconductor, MEMC Electronic Materials, Weatherford Enterra, Roosevelt Federal
and Whirlpool. Purchases include Autodesk, Adobe Systems, American Greetings,
Reynolds Metal, and Lucent Technologies.
Although we are concerned about the market, we are comfortable with the
valuation levels and growth potential of the individual companies in the
portfolios. The stocks in the Fund are valued at about 15 times our estimates
for 1996 earnings, and their earnings are projected to grow at 15%. By contrast,
the broad market, as measured by the S&P 500, is valued at 17 times 1996
earnings which are projected to grow at 7%. It is our firm belief that companies
that are growing faster than the market, with better financial health than the
average company in the market and are selling at a better price, represent
better investments and should outperform the market with less risk over time.
<PAGE>
Comparison of Change in $10,000 Investment in Jurika & Voyles Value + Growth
Fund with Lipper Growth Fund Index and S&P 500 Index
This graph is furnished to you in accordance with SEC regulations. It
compares a $10,000 investment in Jurika & Voyles Value + Growth Fund with a
similar investment in the Lipper Growth Fund Index and the S&P 500 Index from
the inception of the Fund on September 30, 1994 to the end of the Fund's annual
period on June 30, 1996. For purposes of the graph and the Fund's Annualized
Return Since Inception and One Year Total Return, it has been assumed that all
recurring fees (including management fees) were deducted and all distributions
were reinvested.
Total return of the Fund reflects the fact that all fees and expenses,
in excess of certain expense limits specified in the investment management
agreement, have been assumed by Jurika & Voyles, Inc.
Lipper Growth Fund Index is an unmanaged, net asset value weighted
index of 30 mutual funds that invest primarily in companies of all market
capitalization with potential for growth. S&P 500 Index contains 500 industrial,
transportation, utility and financial companies regarded as generally
representative of the U.S. stock market.
Each index reflects the reinvestment of income dividends and capital
gains distributions, if any, but does not reflect fees, brokerage commissions,
or other expenses of investing. All results are historical. Past performance is
no guarantee of future results.
<PAGE>
PERFORMANCE
Balanced Fund
Objective: The Jurika & Voyles Balanced Fund seeks to provide investors
with a balance of long-term capital appreciation and current income. The Fund
invests in a portfolio that combines stocks, bonds and cash-equivalent
securities.
Stock investments include quality companies of all market
capitalizations that offer current value and significant future growth
potential. Emphasis is on companies with lower than market average Price to
Earnings (P/E) ratios and higher than market average earnings growth rates and
returns on equity (ROE). The Fund will build concentrated positions in industry
sectors where Jurika & Voyles sees significant long-term investment
opportunities. Fixed income investments emphasize undervalued credits and
short-to-medium term maturities.
Review: The Balanced Fund returned 5.76% for the first half of 1996,
ahead of the Lipper Balanced Index which returned 4.50% and just slightly under
a representative 60%/40% benchmark index of stocks and bonds which returned
5.87%.
The portfolio experienced some wide swings in performance during the
first half of the year, largely the result of short-term market sentiment
towards the types of stocks in the portfolio, partially offset by steady fixed
income returns. We remain extremely positive about the long-term investment
potential of the investments in the Balanced Fund.
The Fund maintains significant concentrations in the technology,
managed healthcare, and financial services sectors. In both absolute terms, and
relative to the S&P 500 Index, technology was a particularly weak sector in the
first quarter, an extremely strong performer in April and May, and very weak
again in June. Managed healthcare companies were solid performers through May,
but also very weak in June. The large capitalization financial services stocks
in the portfolio have been volatile but strong performers year-to-date, while
the smaller capitalization holdings have not.
These wide swings in performance were the result of three significant
market forces at work: an excess of demand for stocks leading to higher overall
market valuation levels and, therefore, greater volatility; uncertainty about
the economy leading to shifts between more defensive investments in large
capitalization "blue-chip" stocks and more aggressive investments in
small-to-medium capitalization stocks; and an emphasis on short-term earnings
and stock price "momentum." We believe that these swings may continue through
the end of the year, as investors' faith is tested by continued uncertainty
about the economy, unrealistic expectations for future growth, and excessive
valuation levels in the market.
Wide swings in market prices are tell-tale signs of a market that is
both irrational and overvalued. While these factors can create short-term
volatility similar to that experienced year-to-date, they can also create some
extremely attractive investment opportunities as the stocks of many truly
wonderful and healthy businesses are dumped. Our goal, as always, is not to time
the market, but rather to identify companies that offer significant long term
promise for business growth that we can purchase at reasonable prices.
Economic Outlook: Our outlook calls for moderate growth in economic
output and inflation. The most recent consumer debt and default statistics
indicate to us that the consumer is overextended and is likely to retrench.
Industrial companies are, in general, experiencing better success. Although the
bond market appears to reflect the expectation that the Federal Reserve will
raise interest rates by 25 basis points during the summer, we believe that
slowing consumer spending will allow the Fed to leave interest rates unchanged.
By and large, inflation remains in check.
Current Positioning: The Balanced Fund is now positioned with slightly
higher cash levels, the result of selling off or reducing a number of existing
holdings, particularly in the technology area, to lock in gains, or eliminate
problem positions. Recent sales include Tandem, National Semiconductor, MEMC
Electronic Materials, Dayton Hudson, Roosevelt Federal and Whirlpool. Purchases
include Autodesk, Adobe Systems, American Greetings, Reynolds Metal, and Lucent
Technologies.
Although we are concerned about the market, we are comfortable with the
valuation levels and growth potential of the individual companies in the
portfolios. The stocks in the Fund are valued at about 15 times our estimates
for 1996 earnings, and their earnings are projected to grow at 15%. By contrast,
the broad market, as measured by the S&P 500, is valued at 17 times 1996
earnings which are projected to grow at 7%. It is our firm belief that companies
that are growing faster than the market, with better financial health than the
average company in the market and are selling at a better price, represent
better investments and should outperform the market with less risk over time.
In the fixed income portion of the portfolio, we are emphasizing
Treasury and Agency bonds because spreads between corporate and Treasury bonds
are not currently attractive. We believe that much of the excess liquidity and
speculation typical of the stock market has already been driven out of the bond
market.
<PAGE>
Comparison of Change in Value of a $10,000 Investment in Jurika & Voyles
Balanced Fund and 60% S&P 500/40% Lehman Bros. Gov't/Corp. Bond Index, Lipper
Balanced Fund Index and Lehman Brothers Intermediate Gov't/Corp. Bond Index
This graph is furnished to you in accordance with SEC regulations. It
compares a $10,000 investment in Jurika & Voyles Balanced Fund with a similar
investment in a model index consisting of 60% Standard & Poor's ("S&P") 500
Index and 40% Lehman Brothers Government/Corporate Bond Index, Lipper Balanced
Fund Index and the Lehman Brothers Intermediate Government/Corporate Bond Index
from the inception of the Fund on March 9, 1992 to the end of the Fund's annual
period on June 30, 1996. For purposes of the graph and the Fund's Annualized
Total Return Since Inception and the One Year Total Return, it has been assumed
that all recurring fees (including management fees) were deducted and all
distributions were reinvested.
Total returns of the Fund reflect the fact that all fees and expenses,
in excess of certain expense limits specified in the investment management
agreement, have been assumed by Jurika & Voyles, Inc.
The S&P 500 Index is an unmanaged index containing 500 industrial,
transportation, utility and financial companies regarded as generally
representative of the U.S. stock market.
The Lehman Brothers Government/Corporate Bond Index is an unmanaged
market-weighted index consisting of all public obligations of the U.S.
Government, its agencies and instrumentalities and all corporate issuers of
fixed rate, non-convertible, investment grade U.S. dollar denominated bonds
having maturities of greater than one year. It is generally regarded as
representative of the market for domestic bonds.
Lipper Balanced Fund Index is an unmanaged, net asset value weighted
index of 30 largest balanced mutual funds. Lehman Brothers Intermediate
Government/Corporate Bond Index is an unmanaged market-weighted index consisting
of all public obligations of the U.S. Government, its agencies and
instrumentalities and all corporate issuers of fixed rate, non-convertible,
investment grade U.S. dollar denominated bonds having maturities of greater than
one year. It is generally regarded as representative of the market for domestic
bonds.
Each index reflects the reinvestment of income dividends and capital
gains distributions, if any, but does not reflect fees, brokerage commissions,
or other expenses of investing. All results are historical. Past performance is
no guarantee of future results.
In future annual reports, Jurika & Voyles will compare the Balanced
Fund Portfolio only to the Lipper Balanced Fund Index and 60% S&P 500/40% Lehman
Brothers Intermediate Government/Corporate Bond Index for the purposes of
showing Annualized Total Return and One-Year Total Return. We believe this shift
in benchmark measures is appropriate since the portfolio composition of the
Lipper Balanced Fund Index and 60% S&P 500/40% Lehman Brothers Intermediate
Government/Corporate Bond Index better matches the portfolio composition of the
Balanced Fund.
<PAGE>
SCHEDULE OF INVESTMENTS
June 30, 1996
Mini-Cap Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- ----------- ------ -----
<S> <C> <C>
COMMON STOCKS -- 76.95%
BASIC INDUSTRIES
Building Materials -- 1.26%
Apogee Enterprises, Inc. . . . . . . . . . . . . . . . . . . . 20,000 $685,000
*BMC West Corp. . . . . . . . . . . . . . . . . . . . . . . . 28,000 479,500
---------
1,164,500
Iron/Steel -- 0.50%
*Northwest Pipe Co. . . . . . . . . . . . . . . . . . . . . . 27,500 467,500
---------
TOTAL BASIC INDUSTRIES . . . . . . . . . . . . . . . . . . . 1,632,000
COMMUNICATIONS
Equipment -- 0.95%
*Optical Data Systems, Inc. . . . . . . . . . . . . . . . . . 40,000 880,000
CONSUMER CYCLICALS
Automobile Parts -- 2.76%
*Custom Chrome, Inc. . . . . . . . . . . . . . . . . . . . . . 18,000 483,750
*Monro Muffler & Brake, Inc. . . . . . . . . . . . . . . . . . 36,750 675,281
*Motorcar Parts & Accessories, Inc. . . . . . . . . . . . . . 20,000 315,000
Stant Corp. . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 230,000
*Tower Automotive, Inc. . . . . . . . . . . . . . . . . . . . 35,000 857,500
---------
2,561,531
Household Furnishing -- 3.02%
*Department 56, Inc. . . . . . . . . . . . . . . . . . . . . . 25,000 565,625
*Ethan Allen Interiors, Inc. . . . . . . . . . . . . . . . . . 25,000 618,750
*Lifetime Hoam Corp. . . . . . . . . . . . . . . . . . . . . . 150,000 1,612,500
---------
2,796,875
Manufactured Housing -- 1.34%
*Belmont Homes, Inc. . . . . . . . . . . . . . . . . . . . . . 57,500 1,243,437
Retail -- 10.90%
*99 Cents Only Stores . . . . . . . . . . . . . . . . . . . . 15,000 $210,000
*Carson Pirie Scott & Co. . . . . . . . . . . . . . . . . . . 55,000 1,471,250
*Central Garden & Pet Co. . . . . . . . . . . . . . . . . . . 92,000 1,656,000
*Central Tractor Farm & Country, Inc. . . . . . . . . . . . . 50,000 612,500
*Designer Holdings, Ltd. . . . . . . . . . . . . . . . . . . . 10,000 266,250
*Donna Karan International, Inc. . . . . . . . . . . . . . . . 1,000 24,000
*MacFrugal's Bargains & Close Outs . . . . . . . . . . . . . . 13,000 230,750
*Michael's Stores, Inc. . . . . . . . . . . . . . . . . . . . 30,000 510,000
*Movie Gallery, Inc. . . . . . . . . . . . . . . . . . . . . . 13,000 273,000
*Party City Corp. . . . . . . . . . . . . . . . . . . . . . . 10,000 177,500
Pier One Imports, Inc. . . . . . . . . . . . . . . . . . . . . 80,000 1,190,000
*Proffitts, Inc. . . . . . . . . . . . . . . . . . . . . . . . 26,000 923,000
*Rent-Way, Inc. . . . . . . . . . . . . . . . . . . . . . . . 119,000 1,621,375
*Tuesday Morning Corp. . . . . . . . . . . . . . . . . . . . . 70,000 936,250
---------
10,101,875
TOTAL CONSUMER CYCLICALS . . . . . . . . . . . . . . . . . . 16,703,718
CONSUMER SERVICES
Entertainment -- 4.65%
*Anchor Gaming . . . . . . . . . . . . . . . . . . . . . . . . 10,000 583,750
*Children's Discovery Centers America . . . . . . . . . . . . 100,000 675,000
*Iwerks Entertainment, Inc. . . . . . . . . . . . . . . . . . 69,000 681,375
*Play By Play Toys & Novelties . . . . . . . . . . . . . . . . 95,000 1,353,750
*Primadonna Resorts, Inc. . . . . . . . . . . . . . . . . . . 32,000 736,000
*Vaughn's Inc. . . . . . . . . . . . . . . . . . . . . . . . . 22,000 280,500
---------
4,310,375
Hotel/Motel -- 0.98%
*John Q. Hammons Hotels, Inc. . . . . . . . . . . . . . . . . 26,000 282,750
*Red Lion Hotels, Inc. . . . . . . . . . . . . . . . . . . . . 30,000 630,000
---------
912,750
Leisure -- 2.90%
*Cannondale Corp. . . . . . . . . . . . . . . . . . . . . . . 50,000 1,012,500
*GT Bicycles, Inc. . . . . . . . . . . . . . . . . . . . . . . 50,000 812,500
*WMS Industries, Inc. . . . . . . . . . . . . . . . . . . . . 35,000 861,875
---------
2,686,875
Restaurants -- 2.72%
*Dave & Buster's, Inc. . . . . . . . . . . . . . . . . . . . . 35,000 $936,250
*Rock Bottom Restaurants, Inc. . . . . . . . . . . . . . . . . 33,000 396,000
*Sonic Corp. . . . . . . . . . . . . . . . . . . . . . . . . . 40,000 970,000
*Taco Cabana, Inc. . . . . . . . . . . . . . . . . . . . . . . 30,000 217,500
---------
2,519,750
---------
TOTAL CONSUMER SERVICES . . . . . . . . . . . . . . . . . . . 10,429,750
CONSUMER STAPLES
Food -- 0.36%
*UniMark Group, Inc. . . . . . . . . . . . . . . . . . . . . . 20,000 332,500
Household Products -- 0.50%
Rival Co. . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 460,000
---------
TOTAL CONSUMER STAPLES . . . . . . . . . . . . . . . . . . . 792,500
ENERGY
Integrated Oil -- 4.07%
Apache Corp. . . . . . . . . . . . . . . . . . . . . . . . . 20,000 657,500
*Barrett Resources Corp. . . . . . . . . . . . . . . . . . . . 20,000 595,000
*Belco Oil & Gas Corp. . . . . . . . . . . . . . . . . . . . . 20,000 710,000
*Tom Brown, Inc. . . . . . . . . . . . . . . . . . . . . . . . 15,000 256,875
*Cairn Energy USA, Inc. . . . . . . . . . . . . . . . . . . . 30,000 431,250
*Ensco International, Inc. . . . . . . . . . . . . . . . . . . 22,000 715,000
*Forest Oil Corp. . . . . . . . . . . . . . . . . . . . . . . 30,000 408,750
---------
3,774,375
Oil & Gas Services -- 8.21%
*Benton Oil & Gas Co. . . . . . . . . . . . . . . . . . . . . 45,000 990,000
*Dawson Production Services, Inc. . . . . . . . . . . . . . . 30,000 345,000
*DigiCon, Inc. . . . . . . . . . . . . . . . . . . . . . . . . 20,000 335,000
*Dreco Energy Services, Ltd. . . . . . . . . . . . . . . . . . 15,000 412,500
*Landmark Graphics Corp. . . . . . . . . . . . . . . . . . . . 35,000 673,750
*Mitcham Industries, Inc. . . . . . . . . . . . . . . . . . . 60,000 405,000
*Nabors Industries, Inc. . . . . . . . . . . . . . . . . . . . 20,000 325,000
Parker & Parsley Petroleum Co. . . . . . . . . . . . . . . . . 30,000 832,500
*Pride Petroleum Services, Inc. . . . . . . . . . . . . . . . 20,000 285,000
*3-D Geophysical, Inc. . . . . . . . . . . . . . . . . . . . . 105,000 1,128,750
*Trico Marine Services, Inc. . . . . . . . . . . . . . . . . . 6,000 133,500
*Tuboscope Vetco International Corp. . . . . . . . . . . . . . 92,000 1,023,500
*Varco International, Inc. . . . . . . . . . . . . . . . . . . 40,000 725,000
---------
7,614,500
---------
TOTAL ENERGY . . . . . . . . . . . . . . . . . . . . . . . . 11,388,875
FINANCIAL
Financial Services -- Misc. -- 4.23%
Alex Brown, Inc. . . . . . . . . . . . . . . . . . . . . . . 20,000 $1,130,000
Franklin Resources, Inc. . . . . . . . . . . . . . . . . . . 15,000 923,738
*Legg Mason, Inc. . . . . . . . . . . . . . . . . . . . . . . 40,000 1,284,588
Sotheby's Holdings, Inc. . . . . . . . . . . . . . . . . . . . 40,000 580,000
---------
3,918,326
Personal Finance -- 0.71%
Winthrop Resources Corp. . . . . . . . . . . . . . . . . . . 32,500 658,125
Regional Banks -- 0.64%
Cole Taylor Financial Group, Inc. . . . . . . . . . . . . . 20,000 595,000
---------
TOTAL FINANCIAL . . . . . . . . . . . . . . . . . . . . . . . 5,171,451
HEALTHCARE
Drugs -- 0.22%
*Amrion, Inc. . . . . . . . . . . . . . . . . . . . . . . . . 13,000 201,500
Hospitals/Long Term Care -- 0.80%
*Home Health Corp. of America, Inc. . . . . . . . . . . . . . 55,000 745,938
Medical Products -- 1.76%
*CNS, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . 21,000 509,250
*National Dentex Corp. . . . . . . . . . . . . . . . . . . . . 15,000 337,500
*Safeskin Corp. . . . . . . . . . . . . . . . . . . . . . . . 19,000 788,500
---------
1,635,250
---------
TOTAL HEALTHCARE . . . . . . . . . . . . . . . . . . . . . . 2,582,688
INDUSTRIAL PRODUCTS
Containers -- 2.10%
*Alltrista Corp. . . . . . . . . . . . . . . . . . . . . . . . 35,000 831,250
Sealright Co., Inc. . . . . . . . . . . . . . . . . . . . . 30,000 326,250
*Seda Specialty Packaging Corp. . . . . . . . . . . . . . . . 44,000 792,000
---------
1,949,500
Diversified Manufacturing -- 2.01%
*ABC Rail Products Corp. . . . . . . . . . . . . . . . . . . . 23,000 497,375
*Ceradyne Inc., . . . . . . . . . . . . . . . . . . . . . . . 70,000 770,000
Greenfield Industries, Inc. . . . . . . . . . . . . . . . . 18,000 594,000
---------
1,861,375
Electronics Equipment -- 0.98%
BMC Industries Inc. . . . . . . . . . . . . . . . . . . . . 20,000 $575,000
*Photran Corp. . . . . . . . . . . . . . . . . . . . . . . . . 15,000 150,000
*Zytec Corp. . . . . . . . . . . . . . . . . . . . . . . . . . 10,000 181,250
---------
906,250
Machinery -- 0.63%
*Gardner Denvery Machinery, Inc. . . . . . . . . . . . . . . . 22,000 580,250
---------
TOTAL INDUSTRIAL PRODUCTS . . . . . . . . . . . . . . . . . . 5,297,375
INDUSTRIAL SERVICES
Construction -- 0.56%
Granite Construction, Inc. . . . . . . . . . . . . . . . . . 22,500 517,500
Special Services -- 2.56%
*CDI Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . 13,000 438,750
*Cotelligent Group, Inc. . . . . . . . . . . . . . . . . . . . 30,000 517,500
*Devon Group, Inc. . . . . . . . . . . . . . . . . . . . . . . 15,000 487,500
*National Education Corp. . . . . . . . . . . . . . . . . . . 65,000 926,250
2,370,000
---------
TOTAL INDUSTRIAL SERVICES . . . . . . . . . . . . . . . . . . 2,887,500
INSURANCE
Multi-Line Insurance -- 0.83%
John Alden Financial Corp. . . . . . . . . . . . . . . . . . 35,000 774,375
Property/Casualty Insurance -- 0.65%
*IPC Holdings Ltd. . . . . . . . . . . . . . . . . . . . . . . 30,000 603,750
---------
TOTAL INSURANCE . . . . . . . . . . . . . . . . . . . . . . . 1,378,125
REAL ESTATE INVESTMENT TRUSTS -- 4.37%
Camden Property Trust . . . . . . . . . . . . . . . . . . . 20,000 475,000
Equity Residential Properties Trust . . . . . . . . . . . . 15,000 493,125
Essex Property Trust . . . . . . . . . . . . . . . . . . . . 20,000 430,000
Irvine Apartment Communities, Inc. . . . . . . . . . . . . . 25,000 503,125
J.P. Realty, Inc. . . . . . . . . . . . . . . . . . . . . . 20,000 427,500
National Golf Properties, Inc. . . . . . . . . . . . . . . . 25,000 606,250
Post Properties, Inc. . . . . . . . . . . . . . . . . . . . 20,000 707,500
Spieker Properties, Inc. . . . . . . . . . . . . . . . . . . 15,000 408,750
---------
4,051,250
TECHNOLOGY
Hardware -- 2.33%
*Exabyte Corp. . . . . . . . . . . . . . . . . . . . . . . . . 50,000 $653,125
*Mackie Designs, Inc. . . . . . . . . . . . . . . . . . . . . 40,000 450,000
*Marshall Industries . . . . . . . . . . . . . . . . . . . . . 12,000 336,000
*PC Service Source, Inc. . . . . . . . . . . . . . . . . . . . 50,000 725,000
---------
2,164,125
Semiconductors -- 0.77%
*DuPont Photomasks, Inc. . . . . . . . . . . . . . . . . . . . 10,000 205,000
Jaco Electronics, Inc. . . . . . . . . . . . . . . . . . . . . 50,000 506,250
---------
711,250
Software -- 1.09%
*Control Data Systems, Inc. . . . . . . . . . . . . . . . . . 30,000 641,250
*Premenos Technology Corp. . . . . . . . . . . . . . . . . . . 20,000 365,000
---------
1,006,250
---------
TOTAL TECHNOLOGY . . . . . . . . . . . . . . . . . . . . . . 3,881,625
TRANSPORTATION
Airlines -- 1.12%
*Airways Corp. . . . . . . . . . . . . . . . . . . . . . . . . 70,000 472,500
*Reno Air, Inc. . . . . . . . . . . . . . . . . . . . . . . . 50,000 568,750
----------
1,041,250
Miscellaneous Transportation -- 0.32%
*Harper Group, Inc. . . . . . . . . . . . . . . . . . . . . . 15,000 292,500
Railroads -- 2.27%
*Genessee & Wyoming, Inc. . . . . . . . . . . . . . . . . . . 41,000 840,500
*Railtex, Inc. . . . . . . . . . . . . . . . . . . . . . . . . 40,000 1,030,000
*Tranz Rail Holdings, Ltd. . . . . . . . . . . . . . . . . . . 17,000 235,875
----------
2,106,375
Truckers -- 0.88%
*Landstar Systems, Inc. . . . . . . . . . . . . . . . . . . . 28,000 812,000
----------
TOTAL TRANSPORTATION . . . . . . . . . . . . . . . . . . . . 4,252,125
TOTAL COMMON STOCKS
----------
(Cost $64,652,495) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,328,982
==========
</TABLE>
- -----------
* Indicates non-income producing security.
<PAGE>
<TABLE>
<CAPTION>
Description Par Value Value
----------- --------- -----
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 4.29%
U.S. Treasury Bills
4.950%, 07/25/96 . . . . . . . . . . . . . . . . . . . . . . $1,000,000 $996,700
4.990%, 08/08/96 . . . . . . . . . . . . . . . . . . . . . . 1,000,000 994,733
5.030%, 08/15/96 . . . . . . . . . . . . . . . . . . . . . . 1,000,000 993,713
5.080%, 09/12/96 . . . . . . . . . . . . . . . . . . . . . . 1,000,000 989,699
---------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $3,974,845) . . . . . . . . . . . . . . . . . . . . . . . 3,974,845
COMMERCIAL PAPER -- 19.29%
Liberty Mutual Capital Corp.
5.400%, 9/24/96 . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 1,974,500
Merrill Lynch & Co., Inc.
5.290%, 7/3/96 . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 1,999,412
Merrill Lynch & Co., Inc.
5.330%, 7/18/96 . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 1,994,966
Merrill Lynch & Co., Inc.
5.330%, 8/1/96 . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 1,990,820
Merrill Lynch & Co., Inc.
5.380%, 8/22/96 . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 1,984,458
Merrill Lynch & Co., Inc.
5.380%, 8/29/96 . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 1,982,366
Merrill Lynch & Co., Inc.
5.400%, 9/5/96 . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 1,980,200
Toshiba International Finance
5.450%, 9/16/96 . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 1,976,686
USAA Capital Corp.
5.270%, 7/12/96 . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 1,996,779
---------
TOTAL COMMERCIAL PAPER
(Cost $17,880,187) . . . . . . . . . . . . . . . . . . . . . . 17,880,187
REPURCHASE AGREEMENT -- 6.47%
State Street Bank & Trust Co. $6,001,000 at 4.75% (Agreement
dated 06/28/96; to be repurchased at $6,003,375 on 07/01/96;
collateralized by $6,005,000 U.S. Treasury Notes due 8/31/97)
(Value $6,121,551) (Cost $6,001,000) . . . . . . . . . . . $6,001,000 $6,001,000
TOTAL INVESTMENTS -- 107.00%
(Cost $92,508,527) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99,185,014
Liabilities in Excess of Cash and Other Assets -- (7.00%) . . . (6,487,687)
-----------
NET ASSETS -- 100.00% . . . . . . . . . . . . . . . . . . . . . $92,697,327
===========
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS
June 30, 1996
Value + Growth Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- ----------- ------ -----
<S> <C> <C>
COMMON STOCKS -- 79.40%
BASIC INDUSTRIES
Aluminum -- 1.81%
Reynolds Metals Co. . . . . . . . . . . . . . . . . . . . . 7,400 $385,725
Building Materials -- 1.06%
*ABT Building Products Corp. . . . . . . . . . . . . . . . . . 10,000 225,000
Chemicals -- 1.55%
Morton International, Inc. . . . . . . . . . . . . . . . . . 5,700 212,325
OM Group, Inc. . . . . . . . . . . . . . . . . . . . . . . . 3,000 117,750
330,075
Forest Products -- 2.06%
*Asia Pulp & Paper, Ltd. . . . . . . . . . . . . . . . . . . . 35,700 437,325
Iron/Steel -- 1.02%
Quanex Corp. . . . . . . . . . . . . . . . . . . . . . . . . 9,200 217,350
---------
TOTAL BASIC INDUSTRIES . . . . . . . . . . . . . . . . . . . 1,595,475
COMMUNICATIONS
Equipment -- 2.99%
ECI Telecom, Ltd. . . . . . . . . . . . . . . . . . . . . . 15,900 369,675
Lucent Technologies, Inc. . . . . . . . . . . . . . . . . . 7,000 265,125
---------
634,800
Long Distance Service -- 2.19%
*Brooks Fiber Properties, Inc. . . . . . . . . . . . . . . . . 10,000 330,000
*Excel Communication, Inc. . . . . . . . . . . . . . . . . . . 5,000 135,000
---------
465,000
---------
TOTAL COMMUNICATIONS . . . . . . . . . . . . . . . . . . . . 1,099,800
CONSUMER CYCLICALS
Automobile Parts -- 0.52%
Stant Corp. . . . . . . . . . . . . . . . . . . . . . . . . 9,700 111,550
Household Furnishing -- 0.96%
*Department 56, Inc. . . . . . . . . . . . . . . . . . . . . . 9,000 203,625
Manufactured Housing -- 1.02%
*Belmont Homes, Inc. . . . . . . . . . . . . . . . . . . . . . 10,000 216,250
Retail -- 2.10%
*Central Tractor Farm & Country, Inc. . . . . . . . . . . . . 18,000 $220,500
Circuit City Stores, Inc. . . . . . . . . . . . . . . . . . 4,400 158,950
*Saks Holdings, Inc. . . . . . . . . . . . . . . . . . . . . . 2,000 68,250
---------
447,700
---------
TOTAL CONSUMER CYCLICALS . . . . . . . . . . . . . . . . . . 979,125
CONSUMER SERVICES
Leisure -- 0.94%
Brunswick Corp. . . . . . . . . . . . . . . . . . . . . . . 10,000 200,000
Publishing -- 0.89%
American Greetings Corp. . . . . . . . . . . . . . . . . . . 6,900 188,888
Restaurants -- 1.52%
Darden Restaurants, Inc. . . . . . . . . . . . . . . . . . . 30,000 322,500
---------
TOTAL CONSUMER SERVICES . . . . . . . . . . . . . . . . . . . 711,388
CONSUMER STAPLES
Food -- 3.66%
American Stores Company . . . . . . . . . . . . . . . . . . . 9,000 371,250
Hormel Foods Corp. . . . . . . . . . . . . . . . . . . . . . 9,000 240,750
*UniMark Group, Inc. . . . . . . . . . . . . . . . . . . . . . 10,000 166,250
---------
778,250
Household Products -- 2.67%
Premark International, Inc. . . . . . . . . . . . . . . . . 2,800 51,800
Rival Co. . . . . . . . . . . . . . . . . . . . . . . . . . 11,000 253,000
*Tupperware Corp. . . . . . . . . . . . . . . . . . . . . . . 6,200 261,950
---------
566,750
---------
TOTAL CONSUMER STAPLES . . . . . . . . . . . . . . . . . . . 1,345,000
ENERGY
Integrated Oil -- 2.62%
*Belco Oil & Gas Corp. . . . . . . . . . . . . . . . . . . . . 10,000 355,000
Ultramar Corp. . . . . . . . . . . . . . . . . . . . . . . . 7,000 203,000
---------
558,000
Natural Gas -- 1.67%
K N Energy, Inc. . . . . . . . . . . . . . . . . . . . . . . 10,600 355,100
Oil & Gas Services -- 2.20%
*Nabors Industries, Inc. . . . . . . . . . . . . . . . . . . . 15,000 $243,750
*Offshore Logistics, Inc. . . . . . . . . . . . . . . . . . . 9,700 134,588
*Trico Marine Services, Inc. . . . . . . . . . . . . . . . . . 4,000 89,000
---------
467,338
---------
TOTAL ENERGY . . . . . . . . . . . . . . . . . . . . . . . . 1,380,438
FINANCIAL
Banks -- 3.58%
Chase Manhattan Corp. . . . . . . . . . . . . . . . . . . . 5,000 353,125
Citicorp . . . . . . . . . . . . . . . . . . . . . . . . . . 2,300 190,037
Washington Mutual, Inc. . . . . . . . . . . . . . . . . . . 7,300 218,088
---------
761,250
Personal Finance -- 0.98%
Advanta Corp. . . . . . . . . . . . . . . . . . . . . . . . 4,600 208,150
---------
TOTAL FINANCIAL . . . . . . . . . . . . . . . . . . . . . . . 969,400
HEALTHCARE
HMOs -- 2.86%
Caremark International, Inc. . . . . . . . . . . . . . . . . 16,000 404,000
*Foundation Health Corp. . . . . . . . . . . . . . . . . . . . 5,700 204,488
---------
608,488
Hospitals/Long-Term Care -- 4.17%
*Apria HealthCare Group, Inc. . . . . . . . . . . . . . . . . 10,000 313,750
*Living Centers of America, Inc. . . . . . . . . . . . . . . . 6,400 220,000
*Tenet HealthCare Corp. . . . . . . . . . . . . . . . . . . . 16,500 352,687
---------
886,437
---------
TOTAL HEALTHCARE . . . . . . . . . . . . . . . . . . . . . . 1,494,925
INDUSTRIAL PRODUCTS
Aerospace -- 1.03%
Lockheed Martin Corp. . . . . . . . . . . . . . . . . . . . 2,600 218,400
Electronics Equipment -- 2.07%
Augat, Inc. . . . . . . . . . . . . . . . . . . . . . . . . 23,000 439,875
Manufacturing -- 1.59%
Parker-Hannifin Corp. . . . . . . . . . . . . . . . . . . . 8,000 339,000
Office Equipment -- 1.21%
Xerox Corp. . . . . . . . . . . . . . . . . . . . . . . . . 4,800 256,800
---------
TOTAL INDUSTRIAL PRODUCTS . . . . . . . . . . . . . . . . . . 1,254,075
INDUSTRIAL SERVICES
Pollution Control -- 0.88%
Wheelabrator Technologies, Inc. . . . . . . . . . . . . . . 12,200 $186,050
INSURANCE
Life & Annuity Insurance -- 2.12%
*AETNA Life & Casualty Co. . . . . . . . . . . . . . . . . . . 4,500 323,145
Protective Life Corp. . . . . . . . . . . . . . . . . . . . 3,600 126,450
---------
449,595
Property/Casualty Insurance -- 4.04%
Everest Reinsurance Hldgs . . . . . . . . . . . . . . . . . . 12,900 333,788
IPC Holdings Ltd. . . . . . . . . . . . . . . . . . . . . . 13,700 275,713
Vesta Insurance Group, Inc. . . . . . . . . . . . . . . . . 7,500 250,312
---------
859,813
---------
TOTAL INSURANCE . . . . . . . . . . . . . . . . . . . . . . . 1,309,408
TECHNOLOGY
Hardware -- 4.09%
*EMC Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . 29,000 540,125
*Zebra Technologies Corp. . . . . . . . . . . . . . . . . . . 18,600 330,150
---------
870,275
Semiconductors -- 5.83%
Dallas Semiconductor Corp. . . . . . . . . . . . . . . . . . 10,200 184,875
Intel Corp. . . . . . . . . . . . . . . . . . . . . . . . . 4,700 345,155
*LSI Logic Corp. . . . . . . . . . . . . . . . . . . . . . . . 16,200 421,200
*SGS-Thomson Microelectronics . . . . . . . . . . . . . . . . 8,000 287,000
---------
1,238,230
Software -- 6.89%
Adobe Systems, Inc. . . . . . . . . . . . . . . . . . . . . 11,800 423,325
AutoDesk, Inc. . . . . . . . . . . . . . . . . . . . . . . . 13,600 406,300
BMC Software, Inc. . . . . . . . . . . . . . . . . . . . . . 7,000 418,250
*System Software Associates, Inc. . . . . . . . . . . . . . . 12,700 215,900
---------
1,463,775
---------
TOTAL TECHNOLOGY . . . . . . . . . . . . . . . . . . . . . . 3,572,280
TRANSPORTATION
Railroads -- 1.91%
Illinois Central Corp. . . . . . . . . . . . . . . . . . . . 10,400 $295,100
*Trans Rail Holdings Ltd. . . . . . . . . . . . . . . . . . . 8,000 111,000
---------
406,100
Truckers -- 1.03%
*Landstar Systems, Inc. . . . . . . . . . . . . . . . . . . . 7,500 217,500
---------
TOTAL TRANSPORTATION . . . . . . . . . . . . . . . . . . . . 623,600
UTILITIES
Utility Service Providers -- 1.67%
AES Corp. . . . . . . . . . . . . . . . . . . . . . . . . . 12,600 355,950
----------
TOTAL COMMON STOCKS
(Cost $15,200,750) . . . . . . . . . . . . . . . . . . . . . . 16,876,914
</TABLE>
- -----------
* Indicates non-income producing security.
<PAGE>
<TABLE>
<CAPTION>
Par Value
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 2.34%
U.S. Treasury Bills 4.820%, 08/15/96
(Cost $496,987) . . . . . . . . . . . . . . . . . . . . . . . . $500,000 496,987
COMMERCIAL PAPER -- 9.39% Massachusetts Electric Co.
5.430%, 07/10/96 . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 998,643
Southland Corp.
5.400%, 07/17/96 . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 997,600
---------
TOTAL COMMERCIAL PAPER
(Cost $1,996,243) . . . . . . . . . . . . . . . . . . . . . . . 1,996,243
REPURCHASE AGREEMENT -- 10.22%
State Street Bank & Trust Co. $2,173,000 at 4.00% (Agreement
dated 06/28/96; to be repurchased at $2,173,724 on 07/01/96;
collateralized by $2,175,000 U.S. Treasury Notes due 8/31/97)
(Value $2,217,215) (Cost $2,173,000) . . . . . . . . . . . $2,173,000 $2,173,000
TOTAL INVESTMENTS -- 101.35%
(Cost $19,866,980) . . . . . . . . . . . . . . . . . . . . . . 21,543,144
Liabilities in Excess of Cash and Other Assets -- (1.35%) . . . (287,445)
-----------
NET ASSETS -- 100.00% . . . . . . . . . . . . . . . . . . . . . $21,255,699
===========
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS
June 30, 1996
Balanced Fund
<TABLE>
<CAPTION>
Description Par Value Value
- ----------- --------- -----
<S> <C> <C>
CORPORATE BONDS -- 13.73%
Entertainment -- 3.94%
Time Warner, Inc.
7.750%, 06/15/05 . . . . . . . . . . . . . . . . . . . . . . . $800,000 $780,976
Viacom International, Inc.
10.250%, 09/15/01 . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,070,000
---------
1,850,976
Finance & Banking -- 1.13%
Associates Corp., North America
7.950%, 02/15/10 . . . . . . . . . . . . . . . . . . . . . . . 500,000 529,205
Hotels & Casinos -- 2.01% ITT Corp.
6.750%, 11/15/05 . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 945,690
Industrial -- 2.45%
Browning Ferris Industries, Inc.
7.875%, 03/15/05 . . . . . . . . . . . . . . . . . . . . . . . 500,000 525,080
McDonnell Douglas Financial Corp.
8.400%, 04/11/00 . . . . . . . . . . . . . . . . . . . . . . . 600,000 624,510
---------
1,149,590
Natural Resources -- 2.88%
Applied International Finance Co., BV
11.750%, 10/10/05 . . . . . . . . . . . . . . . . . . . . . . . 500,000 512,500
Boise Cascade Corp.
9.900%, 03/15/00 . . . . . . . . . . . . . . . . . . . . . . . 300,000 319,044
Indah Kiat International Finance Co. BV
11.375%, 06/15/99 . . . . . . . . . . . . . . . . . . . . . . 500,000 522,500
---------
1,354,044
Technology -- 1.16%
Xerox Corp.
9.200%, 07/15/99 . . . . . . . . . . . . . . . . . . . . . . . 545,000 545,000
Utilities -- 0.16%
Arkansas Power & Light Co.
10.000%, 02/01/20 . . . . . . . . . . . . . . . . . . . . . . 76,000 77,454
---------
TOTAL CORPORATE BONDS
(Cost $6,461,753) . . . . . . . . . . . . . . . . . . . . . . . 6,451,959
</TABLE>
<TABLE>
<CAPTION>
Number of
Description Shares Value
- ----------- ------ -----
<S> <C> <C>
COMMON STOCKS -- 54.26%
BASIC INDUSTRIES
Aluminum -- 1.62%
Reynolds Metals Co. . . . . . . . . . . . . . . . . . . . . 14,600 $761,025
Chemicals -- 1.39%
Morton International, Inc. . . . . . . . . . . . . . . . . . 8,500 316,625
OM Group, Inc. . . . . . . . . . . . . . . . . . . . . . . . 8,600 337,550
---------
654,175
Forest Products -- 1.86%
*Asia Pulp & Paper, Ltd. . . . . . . . . . . . . . . . . . . . 71,400 874,650
Iron/Steel -- 0.56%
Quanex Corp. . . . . . . . . . . . . . . . . . . . . . . . . 11,100 262,237
---------
TOTAL BASIC INDUSTRIES . . . . . . . . . . . . . . . . . . . 2,552,087
COMMUNICATIONS
Equipment -- 2.16%
ECI Telecom, Ltd. . . . . . . . . . . . . . . . . . . . . . 32,200 748,650
Lucent Technologies, Inc. . . . . . . . . . . . . . . . . . 7,000 265,125
---------
1,013,775
CONSUMER CYCLICALS
Automobile Parts -- 0.54%
Stant Corp. . . . . . . . . . . . . . . . . . . . . . . . . 22,100 254,150
Retail -- 1.09%
Circuit City Stores, Inc. . . . . . . . . . . . . . . . . . 5,300 191,462
Dayton Hudson Corp. . . . . . . . . . . . . . . . . . . . . 3,100 319,687
---------
511,149
---------
TOTAL CONSUMER CYCLICALS . . . . . . . . . . . . . . . . . . 765,299
CONSUMER SERVICES
Publishing -- 0.66%
American Greetings Corp. . . . . . . . . . . . . . . . . . . 11,300 309,338
Restaurants -- 0.94%
Darden Restaurants, Inc. . . . . . . . . . . . . . . . . . . 41,000 440,750
---------
TOTAL CONSUMER SERVICES . . . . . . . . . . . . . . . . . . . 750,088
CONSUMER STAPLES
Food -- 2.37%
American Stores Co. . . . . . . . . . . . . . . . . . . . . 18,000 $742,500
Hannaford Brothers Co. . . . . . . . . . . . . . . . . . . . 11,300 368,663
---------
1,111,163
Household Products -- 0.69%
Tupperware Corp. . . . . . . . . . . . . . . . . . . . . . . 7,700 325,325
---------
TOTAL CONSUMER STAPLES . . . . . . . . . . . . . . . . . . . 1,436,488
ENERGY
Integrated Oil -- 1.57%
Ultramar Corp. . . . . . . . . . . . . . . . . . . . . . . . 11,200 324,800
Vastar Resources Inc. . . . . . . . . . . . . . . . . . . . 11,100 414,863
---------
739,663
Natural Gas -- 0.75%
K.N. Energy, Inc. . . . . . . . . . . . . . . . . . . . . . 10,500 351,750
Oil and Gas Services -- 2.10%
*Nabors Industries, Inc. . . . . . . . . . . . . . . . . . . . 19,800 321,750
Union Tex Petroleum Holdings, Inc. . . . . . . . . . . . . . 16,900 329,550
*Weatherford Enterra, Inc. . . . . . . . . . . . . . . . . . . 11,150 334,500
985,800
---------
TOTAL ENERGY . . . . . . . . . . . . . . . . . . . . . . . . 2,077,213
FINANCIAL
Banks -- 6.35%
Chase Manhattan Corp. . . . . . . . . . . . . . . . . . . . 10,900 769,813
Citicorp . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000 826,250
Roosevelt Financial Group, Inc. . . . . . . . . . . . . . . 28,100 540,925
Washington Mutual Inc. . . . . . . . . . . . . . . . . . . . 28,300 845,462
---------
2,982,450
Financial Services -- Misc. -- 0.74%
*Associates First Capital Corp. . . . . . . . . . . . . . . . 9,200 346,150
Personal Finance -- 0.67%
Advanta Corp. . . . . . . . . . . . . . . . . . . . . . . . 7,000 316,750
---------
TOTAL FINANCIAL . . . . . . . . . . . . . . . . . . . . . . . 3,645,350
HEALTHCARE
HMOs -- 1.44%
*Foundation Health Corp. . . . . . . . . . . . . . . . . . . . 10,600 $380,275
*Mid Atlantic Medical Services, Inc. . . . . . . . . . . . . . 20,900 297,825
---------
678,100
Hospitals/Long-Term Care -- 2.69%
*Apria HealthCare Group Inc. . . . . . . . . . . . . . . . . . 12,200 382,775
*Living Centers of America, Inc. . . . . . . . . . . . . . . . 10,300 354,062
*Tenet HealthCare Corp. . . . . . . . . . . . . . . . . . . . 24,600 525,825
---------
1,262,662
---------
TOTAL HEALTHCARE . . . . . . . . . . . . . . . . . . . . . . 1,940,762
INDUSTRIAL PRODUCTS
Aerospace/Defense -- 1.28%
Lockheed Martin Corp. . . . . . . . . . . . . . . . . . . . 4,100 344,400
Northrop Grumman Corp. . . . . . . . . . . . . . . . . . . . 3,800 258,875
---------
603,275
Electronics Equipment -- 1.09%
Augat, Inc. . . . . . . . . . . . . . . . . . . . . . . . . 26,700 510,638
Office Equipment -- 0.85%
Xerox Corp. . . . . . . . . . . . . . . . . . . . . . . . . 7,500 401,250
---------
TOTAL INDUSTRIAL PRODUCTS . . . . . . . . . . . . . . . . . . 1,515,163
INDUSTRIAL SERVICES
Pollution Control -- 0.65%
Wheelabrator Technologies, Inc. . . . . . . . . . . . . . . 20,000 305,000
INSURANCE
Life & Annuity Insurance -- 2.56%
AETNA Life & Casualty Co. . . . . . . . . . . . . . . . . . 6,300 450,450
Protective Life Corp. . . . . . . . . . . . . . . . . . . . 12,600 442,575
Reliastar Financial Corp. . . . . . . . . . . . . . . . . . 7,200 310,500
---------
1,203,525
Property/Casualty Insurance -- 2.85%
Everest Reinsurance Holdings . . . . . . . . . . . . . . . . 28,900 $747,787
IPC Holdings, Ltd. . . . . . . . . . . . . . . . . . . . . . 14,300 287,788
Vesta Insurance Group, Inc. . . . . . . . . . . . . . . . . 9,050 302,044
---------
1,337,619
---------
TOTAL INSURANCE . . . . . . . . . . . . . . . . . . . . . . . 2,541,144
REAL ESTATE INVESTMENT TRUSTS -- 0.58%
J.P. Realty, Inc. . . . . . . . . . . . . . . . . . . . . . 12,700 271,462
TECHNOLOGY
Hardware -- 3.02%
*EMC Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . 51,500 959,187
*Read Rite Corp. . . . . . . . . . . . . . . . . . . . . . . . 12,300 173,738
*Zebra Technologies Corp. . . . . . . . . . . . . . . . . . . 16,200 287,550
---------
1,420,475
Semiconductors -- 5.51%
Dallas Semiconductor Corp. . . . . . . . . . . . . . . . . . 15,500 280,937
Intel Corp. . . . . . . . . . . . . . . . . . . . . . . . . 12,200 895,937
*LSI Logic Corp. . . . . . . . . . . . . . . . . . . . . . . . 21,700 564,200
*SGS-Thomson Microelectronics . . . . . . . . . . . . . . . . . 19,500 699,563
*VLSI Technology Inc. . . . . . . . . . . . . . . . . . . . . 10,800 149,850
---------
2,590,487
Software -- 3.29%
Adobe Systems, Inc. . . . . . . . . . . . . . . . . . . . . 14,500 520,187
AutoDesk, Inc. . . . . . . . . . . . . . . . . . . . . . . . 14,000 418,250
*BMC Software, Inc. . . . . . . . . . . . . . . . . . . . . . 10,200 609,450
---------
1,547,887
TOTAL TECHNOLOGY . . . . . . . . . . . . . . . . . . . . . . 5,558,849
TRANSPORTATION
Railroad -- 1.18%
Illinois Central Corp. . . . . . . . . . . . . . . . . . . . 19,500 553,313
UTILITIES
Utility Service Providers -- 1.21%
*AES Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . 20,100 567,825
---------
TOTAL COMMON STOCKS
(Cost $21,278,413) . . . . . . . . . . . . . . . . . . . . . 25,493,818
==========
</TABLE>
- -----------
* Indicates non-income producing security.
<PAGE>
<TABLE>
<CAPTION>
Description Par Value Value
- ----------- --------- -----
<S> <C> <C>
AGENCY OBLIGATIONS -- 1.96%
Federal Home Loan Bank
6.047%, 04/21/97 . . . . . . . . . . . . . . . . . . . . . . $300,000 $300,600
Federal National Mortgage Association, STRIP
0.000%, 03/09/02 . . . . . . . . . . . . . . . . . . . . . . 650,000 618,819
-----------
TOTAL AGENCY OBLIGATIONS (Cost $925,270) . . . . . . . . . . . 919,419
ASSET BACKED AND INTEREST ONLY SECURITIES -- 7.80%
Collateralized Mortgage Obligations
G.E. Capital Mortgage Services, Inc.
3.459%, 10/25/08 . . . . . . . . . . . . . . . . . . . . . . . 3,657,456 243,391
Residential Fdg Mtg Secs I Mtg.
1.600%, 11/25/23 . . . . . . . . . . . . . . . . . . . . . . . 42,547,450 607,020
-----------
(Cost $866,248) . . . . . . . . . . . . . . . . . . . . . . . 850,411
Federal Home Loan Mortgage Corporation
1.050%, 04/15/08 . . . . . . . . . . . . . . . . . . . . . . 11,070,674 235,252
3.209%, 05/15/08 . . . . . . . . . . . . . . . . . . . . . . 6,248,315 316,321
6.500%, 09/15/08 . . . . . . . . . . . . . . . . . . . . . . 1,538,857 213,276
6.000%, 04/15/06 . . . . . . . . . . . . . . . . . . . . . . 3,836,103 359,635
-----------
(Cost $999,832) . . . . . . . . . . . . . . . . . . . . . . . 1,124,484
Federal National Mortgage Association
11.520%, 10/25/18 . . . . . . . . . . . . . . . . . . . . . . 483,398 148,953
3.509%, 07/25/22 . . . . . . . . . . . . . . . . . . . . . . 6,107,194 370,249
7.000%, 06/25/20 . . . . . . . . . . . . . . . . . . . . . . 3,646,002 523,543
6.500%, 03/25/22 . . . . . . . . . . . . . . . . . . . . . . 1,663,461 645,631
-----------
(Cost $1,517,457) . . . . . . . . . . . . . . . . . . . . . . 1,688,376
-----------
TOTAL ASSET BACKED AND INTEREST ONLY SECURITIES (Cost $3,383,537) 3,663,271
U.S. TREASURY OBLIGATIONS -- 10.99%
U.S. Treasury Bills
4.820%, 08/15/96 . . . . . . . . . . . . . . . . . . . . . . 1,000,000 993,975
U.S. Treasury Bonds
7.500%, 11/15/16 . . . . . . . . . . . . . . . . . . . . . . 1,100,000 1,156,628
U.S. Treasury Notes
8.000%, 05/15/01 . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,063,120
U.S. Treasury STRIP
0.010%, 11/15/09 . . . . . . . . . . . . . . . . . . . . . . 4,915,000 1,949,780
-----------
TOTAL U.S. TREASURY OBLIGATIONS (Cost $5,259,920) . . . . . . . $5,163,503
COMMERCIAL PAPER -- 6.37%
Bell Atlantic Financial Services
5.400%, 07/16/96 . . . . . . . . . . . . . . . . . . . . . . . $2,000,000 1,995,500
Potomac Edison Co.
5.380%, 07/08/96 . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 998,954
-----------
TOTAL COMMERCIAL PAPER (Cost $2,994,454) . . . . . . . . . . . 2,994,454
REPURCHASE AGREEMENT -- 6.39%
State Street Bank & Trust Co. $3,000,000 at 4.00% (Agreement
dated 06/28/96; to be repurchased at $3,001,000 on 07/01/96;
collateralized by $3,005,000 U.S. Treasury Notes due 8/31/97)
(Value $3,063,324) (Cost $3,000,000) . . . . . . . . . . . $3,000,000 $3,000,000
-----------
TOTAL INVESTMENTS -- 101.50%
(Cost $43,303,347) . . . . . . . . . . . . . . . . . . . . . . $47,686,424
-----------
Liabilities in Excess of Cash and Other Assets -- (1.50%) (707,048)
-----------
NET ASSETS -- 100.00% . . . . . . . . . . . . . . . . . . . . . . . . . . . $46,979,376
===========
</TABLE>
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1996
<TABLE>
<CAPTION>
Mini-Cap Value + Balanced
Fund Growth Fund Fund
---- ----------- ----
<S> <C> <C> <C>
ASSETS
Investments in securities at market value (cost of
$92,508,527, $19,866,980, $43,303,347) . . . . . $99,185,014 $21,543,144 $47,686,424
Cash . . . . . . . . . . . . . . . . . . . . . . . 611 270 605
Receivables:
Investment securities sold . . . . . . . . . . . 3,224,514 193,750 --
Income receivable . . . . . . . . . . . . . . . . 9,200 16,753 229,317
Fund shares sold . . . . . . . . . . . . . . . . 1,056,175 -- 14,646
Deferred organization costs . . . . . . . . . . . . 30,310 30,310 8,595
Prepaid expenses . . . . . . . . . . . . . . . . . 13,370 10,724 11,211
----------- ---------- ----------
Total assets . . . . . . . . . . . . . . . . . 103,519,194 21,794,951 47,950,798
LIABILITIES
Payables:
Investment securities purchased . . . . . . . . . 10,719,539 495,195 792,516
Fund shares repurchased . . . . . . . . . . . . . 331 -- 7,500
Dividends . . . . . . . . . . . . . . . . . . . . -- -- 14,329
Other accrued expenses . . . . . . . . . . . . . 101,997 44,057 157,077
Total liabilities . . . . . . . . . . . . . . . 10,821,867 539,252 971,422
----------- ---------- ----------
NET ASSETS . . . . . . . . . . . . . . . . . . . . $92,697,327 $21,255,699 $46,979,376
COMPOSITION OF NET ASSETS
Paid-in capital . . . . . . . . . . . . . . . . . $82,910,466 $18,976,896 $39,183,885
Accumulated undistributed net investment income
(loss) . . . . . . . . . . . . . . . . . . . . (115,130) -- --
Accumulated undistributed net realized gain on
investments . . . . . . . . . . . . . . . . . . 3,225,504 602,639 3,442,414
Net unrealized appreciation on investments . . . 6,676,487 1,676,164 4,383,077
----------- ---------- ----------
NET ASSETS . . . . . . . . . . . . . . . . . . . . $92,697,327 $21,255,699 $46,979,376
Number of shares, $0.01 par value, issued and
outstanding (unlimited shares authorized) . . . . 5,041,445 1,552,278 3,198,988
----------- ---------- ----------
NET ASSET VALUE PER SHARE . . . . . . . . . . . . . $18.39 $13.69 $14.69
</TABLE>
See notes to financial statements.
<PAGE>
STATEMENTS OF OPERATIONS
For the Fiscal Year Ended June 30, 1996
<TABLE>
<CAPTION>
Mini-Cap Value + Balanced
Fund Growth Fund Fund
-------- ----------- --------
<S> <C> <C> <C>
INVESTMENT INCOME
Income
Dividend income . . . . . . . . . . . . . . . . . . $104,778 $177,120 $303,673
Interest income . . . . . . . . . . . . . . . . . . 280,609 188,517 1,655,772
--------- -------- ----------
Total income . . . . . . . . . . . . . . . . . . 385,387 365,637 1,959,445
Expenses (Note 3)
Investment advisory fees . . . . . . . . . . . . . 333,678 145,483 385,547
Custodian fees . . . . . . . . . . . . . . . . . . 72,194 53,718 69,055
Transfer agent fees . . . . . . . . . . . . . . . . 53,811 47,863 70,058
Legal fees . . . . . . . . . . . . . . . . . . . . 4,846 2,739 22,319
Administration fees . . . . . . . . . . . . . . . . 49,639 49,639 49,639
Audit fees . . . . . . . . . . . . . . . . . . . . 12,034 12,034 12,034
Shareholder reporting and other fees . . . . . . . 26,461 24,024 44,825
Registration fees . . . . . . . . . . . . . . . . . 10,003 10,003 9,981
Trustees fees . . . . . . . . . . . . . . . . . . . 7,521 7,521 7,521
Amortization of deferred organization costs . . . . 9,366 9,366 2,536
Total expenses . . . . . . . . . . . . . . . . . 579,553 362,390 673,515
Less: expenses reimbursed . . . . . . . . . . . . (79,036) (130,535) (60,481)
--------- -------- ----------
Net expenses . . . . . . . . . . . . . . . . . . 500,517 231,855 613,034
--------- -------- ----------
Net investment income (loss) . . . . . . . . . . . . $(115,130) $133,782 $1,346,411
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments . . . . . . . . . . $4,268,271 $1,086,169 $4,394,771
Change in net unrealized appreciation (depreciation)
on investments . . . . . . . . . . . . . . . . . . 5,353,486 753,390 (440,439)
Net gain on investments . . . . . . . . . . . . . . . 9,621,757 1,839,559 3,954,332
Net increase in net assets resulting from operations $9,506,627 $1,973,341 $5,300,743
</TABLE>
See notes to financial statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
07/01/95 09/30/94*
to 06/30/96 to 06/30/95
----------- -----------
For the periods
Mini-Cap Fund
-------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) . . . . . . . . . . . . . . . . $ (115,130) $1,136
Net realized gain on investments sold . . . . . . . . . . . . 4,268,271 265,528
Net unrealized appreciation on investments . . . . . . . . . 5,353,486 1,323,001
----------- -----------
Net increase in net assets from operations . . . . . . . . . 9,506,627 1,589,665
Distributions to shareholders:
From net investment income** . . . . . . . . . . . . . . . . -- (5,369)
From net realized gains** . . . . . . . . . . . . . . . . . . (1,304,062) --
----------- -----------
Total distributions . . . . . . . . . . . . . . . . . . . . . (1,304,062) (5,369)
Fund share transactions:
Proceeds from shares sold . . . . . . . . . . . . . . . . . . 80,695,971 8,822,331
Net asset value of shares issued on reinvestment of
distributions . . . . . . . . . . . . . . . . . . . . . . . 1,244,984 5,369
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . (7,843,000) (115,189)
----------- -----------
Net increase from Fund share transactions . . . . . . . . . . 74,097,955 8,712,511
----------- -----------
Net increase in net assets . . . . . . . . . . . . . . . . . . 82,300,520 10,296,807
NET ASSETS
Beginning of period . . . . . . . . . . . . . . . . . . . . . . 10,396,807 100,000
----------- -----------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . $92,697,327 $10,396,807
=========== ===========
CHANGE IN SHARES
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . 4,666,779 736,366
Shares issued on reinvestment of distributions . . . . . . . . 81,769 505
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . (443,276) (10,698)
----------- -----------
Net increase . . . . . . . . . . . . . . . . . . . . . . . . . 4,305,272 726,173
=========== ===========
</TABLE>
- -----------
* Commenced operations on September 30, 1994.
** See Financial Highlights for per share distribution amounts.
See notes to financial statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
07/01/95 09/30/94*
to 06/30/96 to 06/30/95
----------- -----------
For the periods
Value + Growth Fund
-------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income . . . . . . . . . . . . . . . . . . . . $133,782 $31,435
Net realized gain on investments sold . . . . . . . . . . . . 1,086,169 124,532
Net unrealized appreciation on investments . . . . . . . . . 753,390 922,774
----------- -----------
Net increase in net assets from operations . . . . . . . . . 1,973,341 1,078,741
Distributions to shareholders:
From net investment income** . . . . . . . . . . . . . . . . (162,305) (2,912)
From net realized gains** . . . . . . . . . . . . . . . . . . (608,062) --
----------- -----------
Total distributions . . . . . . . . . . . . . . . . . . . . . (770,367) (2,912)
Fund share transactions:
Proceeds from shares sold . . . . . . . . . . . . . . . . . . 9,377,707 11,951,565
Net asset value of shares issued on reinvestment of
distributions . . . . . . . . . . . . . . . . . . . . . . . 755,296 2,911
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . (3,068,816) (41,767)
----------- -----------
Net increase from Fund share transactions . . . . . . . . . . 7,064,187 11,912,709
----------- -----------
Net increase in net assets . . . . . . . . . . . . . . . . . . 8,267,161 12,988,538
NET ASSETS
Beginning of period . . . . . . . . . . . . . . . . . . . . . . 12,988,538 --
----------- -----------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . $21,255,699 $12,988,538
=========== ===========
CHANGE IN SHARES
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . 708,374 1,016,002
Shares issued on reinvestment of distributions . . . . . . . . 58,676 276
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . (228,057) (3,269)
----------- -----------
Net increase . . . . . . . . . . . . . . . . . . . . . . . . . 538,993 1,013,009
=========== ===========
</TABLE>
- -----------
* Commenced operations on September 30, 1994.
** See Financial Highlights for per share distribution amounts.
See notes to financial statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
07/01/95 09/30/94*
to 06/30/96 to 06/30/95
----------- -----------
For the periods
Balanced Fund
-------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
<S> <C> <C>
Net investment income . . . . . . . . . . . . . . . . . . . . $1,346,411 $654,219
Net realized gain on investments sold . . . . . . . . . . . . 4,394,771 789,904
Net unrealized appreciation (depreciation) on investments . . (440,439) 3,623,588
----------- -----------
Net increase in net assets from operations . . . . . . . . . 5,300,743 5,067,711
Distributions to shareholders:
From net investment income** . . . . . . . . . . . . . . . . (1,353,974) (646,656)
From net realized gains** . . . . . . . . . . . . . . . . . . (1,629,511) (112,750)
----------- -----------
Total distributions . . . . . . . . . . . . . . . . . . . . . (2,983,485) (759,406)
Fund share transactions:
Proceeds from shares sold . . . . . . . . . . . . . . . . . . 13,585,582 5,890,393
Net asset value of shares issued on reinvestment of
distributions . . . . . . . . . . . . . . . . . . . . . . . 2,870,134 729,159
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . (10,629,958)(6,750,106)
----------- -----------
Net increase (decrease) from Fund share transactions . . . . . 5,825,758 (130,554)
----------- -----------
Net increase in net assets . . . . . . . . . . . . . . . . . . 8,143,016 4,177,751
NET ASSETS
Beginning of period . . . . . . . . . . . . . . . . . . . . . . 38,836,360 34,658,609
----------- -----------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . $46,979,376 $38,836,360
=========== ===========
CHANGE IN SHARES
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . 944,421 474,565
Shares issued on reinvestment of distributions . . . . . . . . 201,472 57,394
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . (728,972) (543,500)
----------- -----------
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . 416,921 (11,541)
=========== ===========
</TABLE>
- ----------
* Transferred assets to Jurika & Voyles Fund Group on September 30, 1994
(Note 1).
** See Financial Highlights for per share distribution amounts.
See notes to financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period
<TABLE>
<CAPTION>
07/01/95 09/30/94+ 07/01/95 09/30/94+
to 06/30/96 to 06/30/95 to 06/30/96 to 06/30/95
----------- ----------- ----------- -----------
For the periods For the periods
Mini-Cap Fund Value + Growth Fund
------------- -------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period . $14.12 $10.00 $12.82 $10.00
Income from investment operations
Net investment income (loss) . . . . (0.02) 0.01 0.11 0.05
Net realized and unrealized gain on
investments . . . . . . . . . . . . 5.25 4.13 1.40 2.79
------- ------- ------- -------
Total from investment operations . 5.23 4.14 1.51 2.84
Less distributions
From net investment income . . . . . -- (0.02) (0.13) (0.02)
From net realized gains . . . . . . . (0.96) -- (0.51) --
------- ------- ------- -------
Total distributions . . . . . . . . (0.96) (0.02) (0.64) (0.02)
------- ------- ------- -------
Net asset value, end of period . . . . $18.39 $14.12 $13.69 $12.82
======= ======= ======= =======
Total return . . . . . . . . . . . . . 38.46% 41.47%** 12.11% 28.43%**
Net assets at end of period (in 000's) $92,697 $10,397 $21,256 $12,989
Ratio of expenses to average net assets
(net of expense reimbursements)(1)") 1.50% 1.50%* 1.35% 1.35%*
Ratio of net investment income (loss) to
average net assets . . . . . . . . . (0.35)% 0.04%* 0.78% 1.18%*
Portfolio turnover rate . . . . . . . . 214.71% 102.85% 101.05% 31.64%
</TABLE>
- ----------
* Annualized
** Not annualized
+ Fund commenced operations on September 30, 1994.
The ratios of expenses to average net assets before expense reimbursements
were 1.74% and 4.99% for the Mini-Cap Fund for the periods ended June 30,
1996 and June 30, 1995, respectively. The ratios of expenses to average net
assets before expense reimbursements were 2.12% and 5.21% for the Value +
Growth Fund for periods ended June 30, 1996 and June 30, 1995,
respectively.
See notes to financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period
<TABLE>
<CAPTION>
07/01/95 10/01/94 11/01/93 11/01/92 03/09/92
to to to to to
06/30/96 06/30/95 09/30/94 10/31/93 10/31/92
-------- -------- -------- -------- --------
For the periods
Balanced Fund
-------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period . $13.96 $12.41 $12.82 $10.84 $10.00
Income from investment
operations
Net investment income 0.43 0.24 0.16 0.16 0.11
Net realized and
unrealized gain on
investments . . . . 1.27 1.59 0.05 1.98 0.83
Total from
investment
------ ------ ------ ------ ------
operations . . . 1.70 1.83 0.21 2.14 0.94
Less distributions
From net investment
income . . . . . . (0.43) (0.24) (0.18) (0.16) (0.10)
From net realized
gains . . . . . . . (0.54) (0.04) (0.44) -- --
------ ------ ------ ------ ------
Total distributions
(0.97) (0.28) (0.62) (0.16) (0.10)
------ ------ ------ ------ ------
Net asset value, end of
period . . . . . . . $14.69 $13.96 $12.41 $12.82 $10.84
====== ====== ====== ====== ======
Total return . . . . . 12.56% 14.98% 3.66% 19.83% 14.67%(2)
Net assets at end of
period (in 000's) . . $46,979 $38,836 $34,659 $20,931 $6,008
Ratio of expenses to
average net assets
(net of expense
reimbursements)(3)) . . 1.35% 1.33%* 1.63%* 1.47% 1.50%*
Ratio of net investment
income to average net
assets . . . . . . . 2.98% 2.51%* 1.77%* 1.51% 1.93%*
Portfolio turnover rate
69.11% 54.02% 60.90% 44.12% 20.00%
</TABLE>
- ----------
* Annualized
The Jurika & Voyles Balanced Fund commenced operations on March 9, 1992.
Not annualized for periods less than one year.
The ratios of expenses to average net assets before expense reimbursements
was 1.49% and 1.42% for the Balanced Fund for the periods ended June 30,
1996 and June 30, 1995, respectively.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. Organization
Jurika & Voyles Fund Group (the "Trust") was organized as a Delaware
business trust on July 11, 1994 and is registered under the Investment Company
Act of 1940 (the "1940 Act") as a diversified, open-end management investment
company. The Trust consists of three separate diversified series: Jurika &
Voyles Mini-Cap Fund, Jurika & Voyles Value + Growth Fund, and Jurika & Voyles
Balanced Fund (each a "Fund" and collectively the "Funds").
The investment objectives of the Funds are as follows:
The Mini-Cap Fund seeks to maximize long-term capital appreciation.
This Fund invests primarily in the common stock of quality companies having
small market capitalizations that offer current value and significant future
growth potential.
The Value + Growth Fund seeks long-term capital appreciation. This Fund
invests primarily in the common stock of quality companies of all market
capitalizations that offer current value and significant future growth
potential.
The Balanced Fund seeks to provide investors with a balance of
long-term capital appreciation and current income. This Fund invests primarily
in a diversified portfolio that combines stocks, bonds and cash-equivalent
securities.
On September 30, 1994, shareholders of the Jurika & Voyles Balanced
Fund (the "Balanced Fund"), formerly a portfolio of the Advisors' Inner Circle
Fund (the "Old Fund"), exchanged 2,793,608 shares of the Old Fund (valued at
$34,658,609, including unrealized gains of $1,199,928) for 2,793,608 shares of
the Balanced Fund in a tax-free exchange. All of the assets of the Old Fund were
transferred to the Balanced Fund at net asset value. The Financial Highlights
for periods prior to October 1, 1994 include results of the Old Fund.
2. Significant Accounting Policies
The following is a summary of the significant accounting policies
followed by the Funds.
Security Valuation -- Portfolio securities that are listed or admitted
to trading on a U.S. exchange are valued at the last sales price on the
principal exchange on which the security is traded or, if there has been no sale
that day, at the mean between the closing bid and asked prices. Securities
admitted to trading on the NASDAQ National Market System and securities traded
only in the U.S. over-the-counter market are valued at the last sale price or,
if there has been no sale that day, at the mean between the closing bid and
asked prices. Securities and other assets for which market prices are not
readily available are valued at fair value as determined in good faith by the
Board of Trustees. Debt securities with remaining maturities of 60 days or less
are valued at amortized cost, unless the Board of Trustees determines that
amortized cost does not represent fair value. Cash and receivables are valued at
their face amounts.
<PAGE>
Federal Income Taxes -- Each Fund intends to qualify as a regulated
investment company by complying with the appropriate provisions of the Internal
Revenue Code of 1986, as amended. Accordingly, no provisions for Federal income
taxes are required.
Security Transactions and Related Income -- Security transactions are
accounted for on the date the security is purchased or sold (trade date).
Dividend income is recognized on the ex-dividend date, and interest income is
recognized on the accrual basis. Purchase discounts and premiums on securities
held by the Funds are accreted and amortized to maturity using the effective
interest method.
Realized gains and losses on securities sold are determined under the
identified cost method.
It is the Trust's policy to take possession of securities as collateral
under repurchase agreement and to determine on a daily basis that the value of
such securities is sufficient to cover the value of the repurchase agreements.
Deferred Organization Costs -- Organization costs are amortized on a
straight line basis over a period of sixty months commencing with the Funds'
operations.
Distributions -- Distributions to shareholders are recorded on the
ex-dividend date.
Accounting Estimates -- The preparation of financial statements in
accordance with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results could
differ from those estimates.
3. Management Fees and Transactions with Affiliates
The Trust, on behalf of the Funds, entered into an Agreement with
Jurika & Voyles, Inc. (the "Adviser"). Under the terms of the Investment
Advisory Agreement, the Trust will pay a fee equal to 0.85% of the average daily
net assets of the Value + Growth Fund and the Balanced Fund, and 1.00% of the
Mini-Cap Fund. The Adviser has voluntarily agreed to the expense limitation
described herein for an indefinite period of time, by waiving all or a portion
of its fees (and reimbursing the Funds' expenses) so that the ratio of expenses
to average net assets will not exceed 1.35% for each of the Value + Growth Fund
and Balanced Fund, and 1.50% for the Mini-Cap Fund. In subsequent years, overall
operating expenses of each Fund will not fall below the applicable expense
limitations until the Adviser has been fully reimbursed for fees foregone or
expenses paid by the Adviser under this agreement, as each Fund will reimburse
the Adviser in subsequent years when operating expenses (before reimbursement)
are less than the applicable percentage limitation. The agreement permits such
reimbursement to the Adviser within a three year period following the year in
which the Adviser waived fees or reimbursed expenses of the Fund. Fee waivers
and expense reimbursements are voluntary and may be terminated at any time.
Unreimbursed expenses at June 30, 1996 amounted to $181,434, $233,975, and
$84,339, for the Mini-Cap, Value + Growth and Balanced Funds, respectively.
The Trust, on behalf of the Funds, entered into an Administration
Agreement with Investment Company Administration Corporation (the
"Administrator"). Under the terms of the Agreement, the Trust will pay an annual
fee, payable monthly and computed based on the value of the total average net
assets of the Trust at an annual rate of 0.10% of the first $100 million of such
net assets, 0.05% of next $150 million, 0.03% of next 250 million and 0.01%
thereafter, subject to a minimum fee of $50,000 per annum per Fund.
Each unaffiliated Trustee is compensated by the Trust at $5,000 per
year plus an attendance fee of $500 for each Trustees' meeting attended.
4. Purchases and Sales of Securities
The cost of security purchases and the proceeds from security sales,
other than short-term investments for the year ended June 30, 1996, are as
follows:
Funds Purchases Sales
- ----- --------- -----
Mini-Cap Fund . . . . . . . . . . . . . . . . . . . . $117,228,489 $64,060,225
Value + Growth Fund . . . . . . . . . . . . . . . . . 20,583,700 13,418,001
Balanced Fund . . . . . . . . . . . . . . . . . . . . 29,373,354 27,896,739
At June 30, 1996, the net realized gains or losses on securities sold
for federal income tax purposes was not materially different from amounts
reported for financial reporting purposes. The total cost of securities and the
aggregate gross unrealized appreciation and depreciation for securities held by
the Funds at June 30, 1996, based on cost for federal income tax purposes, are
as follows:
<TABLE>
<CAPTION>
Gross Unrealized Gross Unrealized Net Unrealized
Funds Total Tax Cost Appreciation Depreciation Appreciation
- ----- -------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Mini-Cap Fund . . . . . . . . . . . . $92,588,270 $7,905,053 $(1,308,309) $6,596,744
Value + Growth Fund . . . . . . . . . 19,878,226 2,271,479 (606,561) 1,664,918
Balanced Fund . . . . . . . . . . . . 43,293,226 5,614,520 (1,221,322) 4,393,198
</TABLE>
<PAGE>
INDEPENDENT AUDITOR'S REPORT
The Board of Trustees and Shareholders of
Jurika & Voyles Fund Group
We have audited the accompanying statements of assets and liabilities,
including the schedules of investments of the Jurika & Voyles Mini-Cap Fund,
Jurika & Voyles Value + Growth Fund, and Jurika & Voyles Balanced Fund (all of
which are separate series of Jurika & Voyles Fund Group (the Trust)) as of June
30, 1996 and the related statements of operations for the year then ended, the
statements of changes in net assets, and the financial highlights for the year
ended June 30, 1996 and for the period ended June 30, 1995. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits. The financial
highlights for the periods prior to October 1, 1994 were audited by other
auditors whose report thereon, dated November 23, 1994 expressed an unqualified
opinion with respect thereto.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan an 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 at June 30,
1996, by correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of the Jurika & Voyles Mini-Cap Fund, Jurika & Voyles Value + Growth
Fund, and Jurika & Voyles Balanced Fund at June 30, 1996, the results of their
operations, the changes in their net assets and the financial highlights for the
periods indicated in conformity with generally accepted accounting principles.
New York, New York
July 26, 1996
<PAGE>
------------
J U R I K A & V O Y L E S
------------
Fund Group
------------
A Commonsense Approach to Investing
------------
1999 Harrison Street
------------
Suite 700
------------
Oakland, California 94612-3517
------------
800 JV-INVST
------------
800 58-46878
------------
<PAGE>
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