<PAGE>
ANNUAL REPORT
June 30, 1997
Mini-Cap Fund
Value + Growth Fund
Balanced Fund
J U R I K A & V O Y L E S
-------------------------------------------------------
FUND GROUP
<PAGE>
- Hyphen (...the total return was -1.49%)
- en-dash (...the total return was -1.49%)
- minus sign (...the total return was -1.49%)
-- em-dash (...the total return was --1.49%)
<PAGE>
TABLE OF CONTENTS
------------------------------------------------------------------------
<TABLE>
<S> <C>
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
Independent Auditor's Report............................................ 29
</TABLE>
DIRECTORY OF FUNDS' SERVICE PROVIDERS
Investment Adviser
Jurika & Voyles, L.P., 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
Paul, Hastings, Janofsky & Walker, 345 California Street, 29th Floor, 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.
I
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(THIS PAGE INTENTIONALLY LEFT BLANK)
<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 ended June 30, 1997.
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,
<TABLE>
<S> <C>
[SIG] [SIG]
William K. Jurika Glenn C. Voyles
Jurika & Voyles,
Jurika & Voyles, L.P. L.P.
</TABLE>
1
<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 22.5% in the fiscal year ended June 30,
1997 vs. 16.3% for the Russell 2000 Index and 6.4% for the Lipper Small
Capitalization Fund Index. The Fund's performance benefited from an
overweighting in the industrial, energy, and retail sectors and from specific
technology stocks. The first half of 1997 proved extremely volatile for the
small cap sector of the market, illustrated by the Russell 2000 Index which
declined approximately 7% through April 25, and then turned abruptly, increasing
18% through the end of June. As investors in this volatile sector we must
remember to buy value and hold as long as possible, but sell when stocks or
groups become seriously overvalued based on fundamentals, reinvesting the
proceeds in stocks of companies which appear undervalued and offer a far
superior risk-reward ratio. In April valuations looked so cheap for many quality
companies that takeovers appeared likely if prices did not improve. Both
happened quickly. Some of the best performing stocks during the first half
include Citrix Systems, a developer of distributed access software; Halter
Marine, a marine service company in the offshore oil industry; Patterson Energy,
a land driller; Gardner Denver, a manufacturing company; Alex Brown, an
investment services company acquired by Bankers Trust; and Assisted Living
Concepts, an operator of residences for senior citizens.
The Mini-Cap Fund seeks investment opportunities which offer both value and
growth characteristics and which are benefiting from a growing area of demand in
society; a "theme," if you will. We attempt to limit market risk via our low
price/earnings criteria and limit financial risk by selecting companies with
strong balance sheets and cash flows. Screens are used to identify companies and
industry groups which are priced below their average relative valuations and at
the low end of their historical P/E, P/B, P/CF ranges; where returns on invested
capital are rising, balance sheets are strong, quarterly earnings progression is
accelerating, and cash flow is high relative to earnings; and where recent
returns have lagged the S&P 500. We seek to maximize returns by identifying the
best valuation/growth/return on capital/financial strength. During this part of
the investment process we contact and visit with management, analysts, suppliers
and customers in order to determine the source of and risk to rising earnings
estimates and therefore P/E multiple expansion. We are identifying growth
catalysts such as improved management, a new market opportunity, utilization of
technology to enhance leadership, dominant market share in a niche or a cost
leverage opportunity. Such investments should outperform in both strong and weak
market conditions.
Economic Outlook: The stars have been aligned correctly for the U.S.
economy for several years, for the reasons we all know so well:
technology-driven productivity gains, huge overseas opportunities in developing
markets and fiscal, monetary and wage restraint, allowing low inflation growth
above expected levels. The resulting low yields and higher P/E multiples have
allowed U.S. corporations to raise debt and equity at low costs, thus allowing
them to generate excess returns on capital to fuel sustainable earnings growth.
We remain cautiously bullish that corporate profits will continue to benefit
from these trends over the next year and that the market will increasingly
reflect the strong underlying fundamentals of smaller companies.
2
<PAGE>
PERFORMANCE
------------------------------------------------------------------------
Mini-Cap Fund
Current Positioning: As we predicted late last year, 1997 has proven to be
a volatile period for small-cap stocks. While we are careful to recognize
profits when valuations reach excessive levels, the market volatility offers
excellent opportunity to find businesses with strong earnings growth selling at
reasonable valuations. We continue to like the late-cycle oil service stocks,
selected retail turnarounds which serve special niches, selected restaurants,
industrial technology and financial service stocks.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Jurika & Voyles Lipper Analytical Services, Inc.
<S> <C> <C>
Mini-Cap Fund Small Company Fund Index
9/30/1994 10,000.00 10,000.00
10/31/1994 10,410.00 10,168.00
11/30/1994 10,400.00 9,766.00
12/31/1994 10,650.00 9,987.00
1/31/1995 10,410.00 9,868.00
2/28/1995 11,211.00 10,274.00
3/31/1995 11,832.00 10,548.00
4/30/1995 12,814.00 10,695.00
5/31/1995 13,245.00 10,862.00
6/30/1995 14,147.00 11,525.00
7/31/1995 15,359.00 12,393.00
8/31/1995 15,279.00 12,611.00
9/30/1995 15,509.00 12,966.00
10/31/1995 15,148.00 12,565.00
11/30/1995 16,070.00 12,998.00
12/31/1995 16,210.00 13,145.00
1/31/1996 15,816.00 13,084.00
2/29/1996 16,690.00 13,609.00
3/31/1996 17,691.00 13,886.00
4/30/1996 19,683.00 14,994.00
5/31/1996 20,503.00 15,643.00
6/30/1996 19,587.00 15,013.00
7/31/1996 18,574.91 13,555.47
8/31/1996 19,384.37 14,376.93
9/30/1996 19,948.86 15,202.17
10/31/1996 20,034.06 14,733.94
11/30/1996 21,006.16 15,005.05
12/31/1996 21,424.00 15,068.00
1/31/1997 21,896.00 15,373.00
2/28/1997 20,929.00 14,402.00
3/31/1997 20,270.00 13,619.00
4/30/1997 20,226.00 13,500.00
5/31/1997 22,456.00 15,191.00
6/30/1997 23,984.00 15,931.00
Annualized One Year
Total Returns for Period Ending June 30, 1997 Since Inception Total Return
Jurika & Voyles Mini-Cap Fund 37.44% 22.45%
Lipper Analytical Services, Inc. Small Company Fund Index 18.46% 6.36%
Russell 2000 Index 19.98% 16.35%
<CAPTION>
Russell 2000
<S> <C>
Index
9/30/1994 10,000.00
10/31/1994 9,960.00
11/30/1994 9,557.42
12/31/1994 9,813.55
1/31/1995 9,690.04
2/28/1995 10,093.03
3/31/1995 10,265.63
4/30/1995 10,493.65
5/31/1995 10,674.16
6/30/1995 11,227.98
7/31/1995 11,874.83
8/31/1995 12,120.66
9/30/1995 12,337.60
10/31/1995 11,786.15
11/30/1995 12,280.99
12/31/1995 12,605.20
1/31/1996 12,591.34
2/29/1996 12,984.19
3/31/1996 13,249.06
4/30/1996 13,957.89
5/31/1996 14,507.83
6/30/1996 13,911.56
7/31/1996 12,697.08
8/31/1996 13,434.78
9/30/1996 13,960.08
10/31/1996 13,745.09
11/30/1996 14,311.39
12/31/1996 14,686.35
1/31/1997 14,980.08
2/28/1997 14,617.56
3/31/1997 13,927.61
4/30/1997 13,966.61
5/31/1997 15,519.69
6/30/1997 16,185.49
Total Returns for Period Ending June 30, 1997
Jurika & Voyles Mini-Cap Fund
Lipper Analytical Services, Inc. Small Company Fund Index
Russell 2000 Index
</TABLE>
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
fiscal period on June 30, 1997. 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, L.P.
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.
3
<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 fiscal year ended June 30, 1997 was a strong year for the Value
+ Growth Fund, providing our investors with a return of 32.4%. This is well in
excess of the historical average annual return for stocks and compares to 25.6%
for the Lipper Growth Fund Index, 34.7% for the S&P 500, and 23.0% for the
Russell Mid-Cap Index.
The economic landscape continued to be nearly perfect, with modest growth
and no visible signs of inflation. The combination of declining interest rates,
stronger than expected corporate profits, and large cash flows into stock mutual
funds pushed the valuation of the market into record territory. So far, this
bull market has yet to experience a correction of 10% or more as measured by the
S&P 500, very uncommon for an advance of this magnitude and duration.
The strong relative performance of the 25-50 largest capitalization stocks
in the market continued, a trend which has been in place for many months and
which we feel is vulnerable. In the Value + Growth Fund, we continue to focus on
companies where the valuations relative to expected growth rates are more
rational. As a result, we have maintained an emphasis on stocks in the financial
services, technology, healthcare services and industrial sectors. In addition,
the portfolio is skewed toward mid-sized companies, where we feel the trade-off
between risk and return is more attractive.
The combination of our overweighting and stock selection in financial
services and insurance was a key driver to the portfolio's return, providing the
greatest contribution to relative performance. These sectors represented between
12% and 16% of the portfolio throughout the year. The slow-growth, low-inflation
environment has been ideal for financial stocks.
Our willingness to take a contrarian view clearly worked in the technology
area. Through the year, technology and communications stocks averaged more than
20% of the portfolio. Also, we materially changed the stocks held in these
sectors during the period. The overweighting and repositioning in these sectors
had a significant positive impact on performance. As companies met earnings
expectations, investor confidence returned to the sector, resulting in large
price appreciation for a number of our stocks.
In healthcare services, the results were more mixed. Individual stock
performance varied considerably, and our overweighting in this sector detracted
from relative performance. Earnings uncertainty was more pervasive than we had
anticipated. We continue to buy good businesses at attractive prices, and we
have chosen to hold on to some stocks in which we have long-term confidence
while the market reacts to short-term swings in psychology.
During the last year we have changed our industrial holdings, adding some
larger companies in the agricultural machinery and defense/aerospace industries.
As these companies continued to deliver consistent earnings, their stocks
exhibited solid price performance.
Given the fact that the largest capitalization stocks attributed a
disproportionate share of the returns in the markets this year, we are pleased
with our results. We continue to believe that investors have ignored the risks
of overvaluation in the largest S&P companies. The safety they seek in these
stocks may evade them as the market rectifies this relative valuation
discrepancy.
Current Positioning: We continue to maintain our overweightings in the
financial services, technology, healthcare services and industrial sectors.
Stocks in the financial sector possess valuations that are substantially
less than the market. Prospects for the Federal Reserve to implement a series of
interest rate hikes have diminished, and we do not appear
4
<PAGE>
PERFORMANCE
------------------------------------------------------------------------
Value + Growth Fund
to be at an imbalance in the credit cycle. Therefore, these stocks should behave
well and, in fact, should exhibit somewhat defensive characteristics in a
difficult market.
Technology, including communications, continues to increase its importance
in today's economy, comprising an ever larger percentage of GDP. Segments of the
technology sector are expected to grow at rates well in excess of the overall
economy, and the stocks we own offer strong potential for price appreciation.
Managed healthcare continues to deal with issues of capacity, consolidation
and pricing. As a result, these stocks offer compelling valuations. In addition,
the continued move toward managed care in the U.S. should provide solid
fundamental support for these stocks. In light of the overall market's
valuation, these stocks afford very attractive risk/return profiles.
Industrial companies continue to offer valuations below their historic
ranges. This is due in part to investors' concerns about the late stage of the
current economic cycle. While we think that the earnings of these companies will
continue to be cyclical, the degree of cyclicality may be materially less than
in the past. In addition, a large component of our exposure in this sector is
concentrated in the agricultural and defense industries. These sectors are
primarily subject to industry-specific cycle dynamics and should continue to
exhibit positive fundamentals in the next few years, irrespective of general
economic activity.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Lipper Analytical Services,
Jurika & Voyles Inc. S&P 500
<S> <C> <C> <C>
Value + Growth Fund Growth Fund Index Index
9/30/1994 10,000 10,000 10,000
10/31/1994 10,140 10,191 10,225
11/30/1994 10,080 9,803 9,853
12/31/1994 10,559 9,888 9,999
1/31/1995 10,469 9,924 10,258
2/28/1995 10,869 10,291 10,658
3/31/1995 11,210 10,603 10,972
4/30/1995 11,751 10,903 11,295
5/31/1995 12,162 11,233 11,746
6/30/1995 12,843 11,737 12,019
7/31/1995 13,474 12,305 12,418
8/31/1995 13,554 12,435 12,449
9/30/1995 13,755 12,804 12,974
10/31/1995 13,104 12,634 12,928
11/30/1995 13,845 13,062 13,495
12/31/1995 13,525 13,117 13,756
1/31/1996 13,431 13,434 14,223
2/29/1996 13,757 13,645 14,356
3/31/1996 13,946 13,708 14,493
4/30/1996 14,714 14,051 14,706
5/31/1996 14,998 14,304 15,084
6/30/1996 14,398 14,164 15,142
7/31/1996 13,410 13,398 14,472
8/31/1996 14,146 13,796 14,778
9/30/1996 14,829 14,567 15,610
10/31/1996 15,135 14,777 16,041
11/30/1996 15,263 15,711 17,253
12/31/1996 16,272 15,414 16,912
1/31/1997 16,940 16,216 17,969
2/28/1997 17,080 16,091 16,109
3/31/1997 16,389 15,354 17,365
4/30/1997 16,741 16,029 16,401
5/31/1997 18,334 17,139 18,522
6/30/1997 19,060 17,780 20,396
Annualized One Year
Total Returns for Period Ending June 30, 1997 Since Inception Total Return
Jurika & Voyles Value + Growth Fund 26.43% 32.38%
Lipper Analytical Services, Inc. Small Company Fund Index 23.27% 25.58%
Russell 2000 Index 29.58% 34.72%
</TABLE>
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 fiscal
period on June 30, 1997. 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, L.P.
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.
5
<PAGE>
PERFORMANCE
------------------------------------------------------------------------
Balanced Fund
Objective: The Jurika & Voyles Balanced Fund seeks to provide investments
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 growth potential. Emphasis is on
companies with lower than market average Price to Earnings (P/E) rates and
higher than market average earnings growth ratio 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 fiscal year ended June 30, 1997 was a strong year for the
Balanced Fund, providing our investors with a return of 23.1%. This compares to
20.5% for the Lipper Balanced Fund Index and 23.2% for a representative 60%/40%
benchmark index of stocks and bonds.
EQUITIES: The economic landscape continued to be near-perfect, with modest
growth and no visible signs of inflation. Declining interest rates, stronger
than expected corporate profits and large cash inflows pushed the valuation of
the market into record territory. So far, this toll market has yet to produce a
correction of 10% or more as measured by the S&P 500, very uncommon for an
advance of this magnitude and duration.
The strong relative performance of the 25-50 largest stocks in the market
continued, a trend which has been in place for many months and which we feel is
vulnerable. In the Balanced Fund, we continue to focus on companies where the
valuations relative to expected growth rates are more rational. As a result, we
have maintained an emphasis on stocks in the financial services, technology,
healthcare services and industrial sectors. In addition, the portfolio is skewed
toward mid-sized companies, where we feel the trade-off between risk and return
is more attractive.
The combination of our overweighting and stock selection in the financial
services, technology and industrial sectors was the key driver to the
portfolio's performance. In healthcare services, the results were mixed as
individual stock performance varied considerably, and our overweighting in this
sector detracted from relative performance.
Given the fact that the largest capitalization stocks attributed a
disproportionate share of the returns in the market this year, we are pleased
with our results. We continue to believe that investors have ignored the risks
of overvaluation in the largest S&P companies. The safety they seek in these
stocks may evade them as the market rectifies this relative valuation
discrepancy.
FIXED INCOME. With 30-year bonds trading in a range of 6.5%-7.2% for most
of the year, our strategy emphasized returns from income over capital gains. The
portfolio has been well-diversified among sectors, structures and credits, and
the overall quality of the fixed income component is AA. We have held a
relatively high weighting in corporate bonds for greater yield, reflecting both
our research efforts and our belief in the overall credit strength of U.S.
corporations. In fact, during the course of the year we took advantage of
widening spreads between corporate bonds and U.S. Treasuries by increasing our
exposure to both investment grade and high-yield bonds. We maintained our
exposure to high-income collateralized mortgage obligations which offer
competitive yields, yet are issued by government agencies and rated AAA.
Current Positioning:
EQUITIES. We continue to maintain our overweighting in the financial
services, technology, healthcare services and industrial sectors.
Stocks in the financial sector possess valuations that are substantially
less than the market. Prospects for the Federal Reserve to implement a series of
interest rate hikes have diminished, and we do not appear to be at an imbalance
in the credit cycle. Therefore, these stocks should behave well and, in fact,
should exhibit somewhat defensive characteristics in a difficult market.
Technology, including communications, continues to increase its importance
in today's economy, comprising an ever larger percentage of GDP. Segments of the
technology sector are forecasted to grow at
6
<PAGE>
PERFORMANCE
------------------------------------------------------------------------
Balanced Fund
rates well in excess of the overall economy, and the stocks we own offer strong
potential for price appreciation.
Managed healthcare continues to deal with issues of capacity, consolidation
and pricing. As a result, many of these stocks offer compelling valuations. In
addition, the continued move toward managed care in the U.S. should provide
solid fundamental support for these stocks.
Industrial companies continue to offer valuations below their historic
ranges. While we think that the earnings of these companies will continue to be
cyclical, the degree of cyclicality may be materially less than in the past.
FIXED INCOME. Our fixed income strategy is moderately bullish. We feel that
either the economy will slow down to a non-inflationary pace on its own or the
Federal Reserve will modestly raise interest rates to force economic growth to a
sustainable trend. Long-term, either scenario implies lower interest rates. The
fixed income portion of the Balanced Fund reflects this bullish posture. The
portfolio is well-diversified among sectors, structures and credits, and the
overall quality of the fixed income component is AA.
In the short term, however, low unemployment and strong job creation may
result in heightened fears of wage inflation, with negative implications for
stock and bond markets. The market is alert to any signs of an economic rebound
in the second half of 1997, and until the economic data confirms the direction
of the economy, there will be volatility.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Jurika & Voyles Lipper Balanced
<S> <C> <C>
Balanced Fund Fund Index
3/9/1992 10,000 10,000
3/31/1992 9,940 10,000
4/30/1992 10,100 10,108
5/31/1992 10,170 10,239
6/30/1992 10,162 10,160
7/31/1992 10,544 10,458
8/31/1992 10,494 10,361
9/30/1992 10,720 10,480
10/31/1992 10,942 10,461
11/30/1992 11,316 10,721
12/31/1992 11,547 10,874
1/31/1993 11,851 11,020
2/28/1993 11,790 11,156
3/31/1993 12,118 11,386
4/30/1993 11,986 11,299
5/31/1993 12,108 11,497
6/30/1993 12,333 11,619
7/31/1993 12,536 11,666
8/31/1993 12,863 12,018
9/30/1993 13,060 12,044
10/31/1993 13,111 12,168
11/30/1993 13,009 11,973
12/31/1993 13,512 12,174
1/31/1994 13,814 12,493
2/28/1994 13,793 12,247
3/31/1994 13,330 11,802
4/30/1994 13,372 11,829
5/31/1994 13,341 11,920
6/30/1994 13,216 11,713
7/31/1994 13,384 11,977
8/31/1994 13,719 12,277
9/30/1994 13,544 12,056
10/31/1994 13,304 12,093
11/30/1994 12,933 11,811
12/31/1994 13,216 11,925
1/31/1995 13,271 12,073
2/28/1995 13,822 12,419
3/31/1995 14,142 12,644
4/30/1995 14,531 12,882
5/31/1995 15,141 13,294
6/30/1995 15,573 13,529
7/31/1995 16,019 13,816
8/31/1995 16,309 13,923
9/30/1995 16,480 14,256
10/31/1995 15,961 14,220
11/30/1995 16,514 14,862
12/31/1995 16,574 14,892
1/31/1996 16,597 15,161
2/29/1996 16,927 15,169
3/31/1996 17,050 15,226
4/30/1996 17,642 15,327
5/31/1996 17,891 15,512
6/30/1996 17,529 15,563
7/31/1996 16,860 15,163
8/31/1996 17,481 15,403
9/30/1996 17,967 15,973
10/31/1996 18,303 16,311
11/30/1996 19,272 17,071
12/31/1996 19,140 16,861
1/31/1997 19,803 17,250
2/28/1997 20,068 17,414
3/31/1997 19,636 16,908
4/30/1997 20,044 17,417
5/31/1997 20,993 18,129
6/30/1997 21,581 18,718
Annualized One Year
Total Returns for Period Ending June 30, 1997 Since Inception Total Return
Jurika & Voyles Balanced Fund 15.58% 23.12%
Lipper Balanced Fund Index 12.68% 20.46%
60% S&P 500/40% Lehman Bros. Gov't/Corp. Bond Index 14.06% 23.23%
<CAPTION>
60% S&P 500/40% Lehman
<S> <C>
Bros. Gov't/Corp. Bond Index
3/9/1992 10,000
3/31/1992 9,994
4/30/1992 10,205
5/31/1992 10,299
6/30/1992 10,268
7/31/1992 10,601
8/31/1992 10,513
9/30/1992 10,644
10/31/1992 10,611
11/30/1992 10,811
12/31/1992 10,949
1/31/1993 11,089
2/28/1993 11,250
3/31/1993 11,410
4/30/1993 11,281
5/31/1993 11,453
6/30/1993 11,545
7/31/1993 11,528
8/31/1993 11,863
9/30/1993 11,828
10/31/1993 11,988
11/30/1993 11,893
12/31/1993 12,001
1/31/1994 12,299
2/28/1994 12,027
3/31/1994 11,633
4/30/1994 11,690
5/31/1994 11,809
6/30/1994 11,635
7/31/1994 11,931
8/31/1994 12,240
9/30/1994 12,016
10/31/1994 12,177
11/30/1994 11,889
12/31/1994 12,012
1/31/1995 12,279
2/28/1995 12,668
3/31/1995 12,922
4/30/1995 13,213
5/31/1995 13,690
6/30/1995 13,917
7/31/1995 14,195
8/31/1995 14,268
9/30/1995 14,670
10/31/1995 14,704
11/30/1995 15,168
12/31/1995 15,407
1/31/1996 15,775
2/29/1996 15,789
3/31/1996 15,848
4/30/1996 15,965
5/31/1996 16,206
6/30/1996 16,312
7/31/1996 15,898
8/31/1996 16,105
9/30/1996 16,738
10/31/1996 17,834
11/30/1996 18,002
12/31/1996 17,742
1/31/1997 18,435
2/28/1997 18,536
3/31/1997 18,027
4/30/1997 18,757
5/31/1997 19,505
6/30/1997 20,102
Total Returns for Period Ending June 30, 1997
Jurika & Voyles Balanced Fund
Lipper Balanced Fund Index
60% S&P 500/40% Lehman Bros. Gov't/Corp. Bond Index
</TABLE>
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, and Lipper
Balanced Fund Index from the inception of the Fund on March 9, 1992 to the end
of the Fund's fiscal period on June 30, 1997. 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, L.P.
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 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.
7
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
- --------------------------------------------------------------------------------
Mini-Cap Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- -------------------------------------------------------- ---------- -------------
<S> <C> <C>
COMMON STOCKS -- 94.19%
BASIC INDUSTRIES
Building Materials -- 2.07%
Apogee Enterprises, Inc. ............................. 30,000 $ 645,000
Elcor Chemical Corp. ................................. 18,900 526,838
*NCI Building Systems, Inc. ........................... 42,500 1,375,937
-------------
2,547,775
-------------
Chemicals -- 1.08%
OM Group, Inc. ....................................... 40,000 1,325,000
-------------
Iron/Steel -- 2.21%
*Maverick Tube Corp. .................................. 30,000 1,125,000
*Northwest Pipe Co. ................................... 42,500 780,938
*RMI Titanium Co. ..................................... 30,000 817,500
-------------
2,723,438
-------------
Paper & Pulp -- 0.49%
Oregon Steel Mills, Inc. ............................. 30,000 598,125
-------------
TOTAL BASIC INDUSTRIES................................ 7,194,338
-------------
COMMUNICATIONS
Communication Equipment -- 2.27%
*Applied Voice Technology Inc. ........................ 20,000 370,000
ECI Telecom, Ltd. .................................... 30,000 892,500
*Electromagnetic Sciences, Inc. ....................... 30,000 525,000
*Ods Networks, Inc. ................................... 30,000 356,250
*Periphonics Corp. .................................... 30,000 645,000
-------------
2,788,750
-------------
CONSUMER CYCLICALS
Automobile Parts -- 0.68%
*Dura Automotive Systems, Inc. ........................ 30,000 840,000
-------------
Homebuilding -- 0.86%
Kaufman & Broad Home Corp. ........................... 60,000 1,053,750
-------------
<CAPTION>
Number of
Description Shares Value
- -------------------------------------------------------- ---------- -------------
<S> <C> <C>
Retail: Apparel -- 4.37%
*Brylane, Inc. ........................................ 30,000 $ 1,156,875
*Gymboree Corp. ....................................... 50,000 1,200,000
*Nautica Enterprises, Inc. ............................ 20,000 528,750
*Paul Harris Stores, Inc. ............................. 35,000 586,250
*Quiksilver, Inc. ..................................... 40,000 1,280,000
*Wet Seal, Inc. ....................................... 20,000 631,250
-------------
5,383,125
-------------
Retail: Department Stores -- 0.71%
*Proffitts, Inc. ...................................... 20,000 877,500
-------------
Retail: Food -- 0.64%
*Showbiz Pizza Time, Inc. ............................. 30,000 791,250
-------------
Retail: Specialty -- 8.00%
*Cannondale Corp. ..................................... 40,000 710,000
*Carson Pirie Scott & Co. ............................. 50,000 1,587,500
*Central Garden & Pet Co. ............................. 40,000 1,000,000
*Cost Plus, Inc. ...................................... 40,000 1,050,000
*General Nutrition Companies, Inc. .................... 40,000 1,120,000
*Linens-N-Things, Inc. ................................ 20,000 592,500
*Michaels Stores, Inc. ................................ 80,000 1,695,000
*Petsmart, Inc. ....................................... 50,000 575,000
*Tuesday Morning Corp. ................................ 75,000 1,509,375
-------------
9,839,375
-------------
Shoes -- 1.22%
Brown Group, Inc. .................................... 40,000 747,500
*Vans, Inc. ........................................... 50,000 756,250
-------------
1,503,750
-------------
Textiles -- 1.88%
*Pluma, Inc. .......................................... 110,000 1,691,250
*Tarrant Apparel Group ................................ 40,000 625,000
-------------
2,316,250
-------------
Toys -- 0.31%
*Galoob Toys, Inc. .................................... 20,000 377,500
-------------
TOTAL CONSUMER CYCLICALS.............................. 22,982,500
-------------
CONSUMER SERVICES
Hotel/Motel -- 0.44%
*Silver Leaf Resorts .................................. 35,000 538,125
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
- --------------------------------------------------------------------------------
Mini-Cap Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- -------------------------------------------------------- ---------- -------------
Leisure -- 2.62%
<S> <C> <C>
*Steiner Leisure, Limited ............................. 45,000 $ 1,254,375
*Family Golf Centers, Inc. ............................ 30,000 690,000
*North Face, Inc. ..................................... 70,000 1,277,500
-------------
3,221,875
-------------
Restaurants -- 2.88%
*Benihana, Inc. ....................................... 13,000 117,000
CKE Restaurants, Inc. ................................ 40,000 1,265,000
*Foodmaker, Inc. ...................................... 80,000 1,310,000
*O'Charleys, Inc. ..................................... 50,000 850,000
-------------
3,542,000
-------------
TOTAL CONSUMER SERVICES............................... 7,302,000
-------------
CONSUMER STAPLES
Cosmetics -- 0.84%
*Helen of Troy, Ltd. .................................. 40,200 1,030,125
-------------
Food -- 0.77%
Weider Nutrition International, Inc. ................. 60,000 952,500
-------------
Household Products -- 1.06%
Windmere Durable Holdings, Inc. ...................... 80,000 1,310,000
-------------
TOTAL CONSUMER STAPLES................................ 3,292,625
-------------
ENERGY
Integrated Oil: Domestic -- 5.01%
*Barrett Resources Corp. .............................. 30,000 898,125
*Comstock Resources, Inc. ............................. 100,000 1,043,750
Devon Energy Corp. ................................... 30,000 1,102,500
Monterey Resources, Inc. ............................. 40,000 595,000
Snyder Oil Corp. ..................................... 50,000 918,750
Vastar Resources, Inc. ............................... 30,000 1,051,875
Wiser Oil Co. ........................................ 30,000 553,125
-------------
6,163,125
-------------
<CAPTION>
Number of
Description Shares Value
- -------------------------------------------------------- ---------- -------------
<S> <C> <C>
Oil & Gas Services -- 12.00%
*Benton Oil & Gas Co. ................................. 90,000 $ 1,350,000
*Dreco Energy Services, Inc. .......................... 24,000 1,260,000
*Hanover Compressor Co. ............................... 30,000 585,000
*HVIDE Marine, Inc. ................................... 32,000 708,000
*Key Energy Group, Inc. ............................... 95,600 1,702,875
*Lone Star Technologies, Inc. ......................... 40,000 1,145,000
*Nabors Industries, Inc. .............................. 20,000 500,000
*Offshore Logistics, Inc. ............................. 40,000 755,000
*Pride Petroleum Services, Inc. ....................... 25,000 600,000
*Simon Transnational Services, Inc. ................... 81,300 1,615,837
*Swift Energy Co. ..................................... 40,000 955,000
*Tuboscope Vetco International Corp. .................. 37,000 735,375
*UTI Energy Corp. ..................................... 20,000 917,500
*Varco International Inc. ............................. 60,000 1,935,000
-------------
14,764,587
-------------
Integrated Oil: International -- 2.06%
*Patterson Energy, Inc. ............................... 30,000 1,361,250
*Santa Fe Energy Resources, Inc. ...................... 80,000 1,175,000
-------------
2,536,250
-------------
TOTAL ENERGY.......................................... 23,463,962
-------------
FINANCIAL
Investment Bank/Broker -- 1.67%
Beverly Bancorporation, Inc. ......................... 52,500 1,010,625
MAF Bancorp, Inc. .................................... 25,000 1,046,875
-------------
2,057,500
-------------
Miscellaneous Finance -- 2.25%
*Barra, Inc. .......................................... 40,000 1,320,000
Legg Mason, Inc. ..................................... 27,000 1,452,937
-------------
2,772,937
-------------
TOTAL FINANCIAL....................................... 4,830,437
-------------
HEALTHCARE PRODUCTS
Drugs -- 0.57%
*Amrion, Inc. ......................................... 25,000 700,000
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
- --------------------------------------------------------------------------------
Mini-Cap Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- -------------------------------------------------------- ---------- -------------
Medical Products -- 0.48%
<S> <C> <C>
Mentor Corp. ......................................... 20,000 $ 592,500
-------------
TOTAL HEALTHCARE PRODUCTS............................. 1,292,500
-------------
HEALTHCARE SERVICES
HMO'S -- 0.80%
*FPA Medical Management, Inc. ......................... 20,000 473,750
*Promedco Management, Co. ............................. 60,000 510,000
-------------
983,750
-------------
Hospitals/Long Term Care -- 1.53%
*Assisted Living Concepts, Inc. ....................... 40,000 1,105,000
*Mid Atlantic Medical Services, Inc. .................. 50,000 778,125
-------------
1,883,125
-------------
TOTAL HEALTHCARE SERVICES............................. 2,866,875
-------------
INDUSTRIAL PRODUCTS
Electronics Equipment -- 2.41%
*General Cable Corp. .................................. 65,000 1,665,625
Robbins & Myers, Inc. ................................ 40,000 1,300,000
-------------
2,965,625
-------------
Electronics Instruments -- 0.60%
*General Scanning, Inc. ............................... 50,000 737,500
-------------
Machinery -- 5.86%
Alamo Group, Inc. .................................... 71,700 1,492,256
*Gardner Denver Machinery, Inc. ....................... 48,500 1,442,875
*Gradall Industries, Inc. ............................. 23,000 368,000
*Hirsch International Group ........................... 35,000 778,750
*Lancer Corp. ......................................... 43,700 1,081,575
*Omniquip International, Inc. ......................... 50,000 1,156,250
*RDO Equipment Co. .................................... 40,000 895,000
-------------
7,214,706
-------------
<CAPTION>
Number of
Description Shares Value
- -------------------------------------------------------- ---------- -------------
<S> <C> <C>
Manufacturing - Diversified -- 2.74%
Greenfield Industries, Inc. .......................... 35,000 $ 945,000
*Halter Marine Group, Inc. ............................ 40,000 960,000
Katy Industries, Inc. ................................ 37,000 550,375
*Smith International, Inc. ............................ 15,000 911,250
-------------
3,366,625
-------------
Office Equipment -- 0.97%
*Knoll, Inc. .......................................... 50,000 1,187,500
-------------
TOTAL INDUSTRIAL PRODUCTS............................. 15,471,956
-------------
INDUSTRIAL SERVICES
Construction -- 1.30%
Granite Construction, Inc. ........................... 35,000 691,250
*Willbros Group, Inc. ................................. 57,100 906,463
-------------
1,597,713
-------------
Distribution -- 1.35%
*Pameco Corp. ......................................... 40,000 710,000
*Viking Office Products, Inc. ......................... 50,000 950,000
-------------
1,660,000
-------------
Special Services -- 3.47%
*Barrett Business Services, Inc. ...................... 50,000 681,250
*Budget Group, Inc. ................................... 32,000 1,104,000
*May & Speh, Inc. ..................................... 50,000 675,000
*RWD Technologies, Inc. ............................... 60,000 1,035,000
*SOS Staffing Services, Inc. .......................... 50,000 775,000
-------------
4,270,250
-------------
TOTAL INDUSTRIAL SERVICES............................. 7,527,963
-------------
INSURANCE
Property/Casualty Insurance -- 0.48%
Reliance Group Holdings, Inc. ........................ 50,000 593,750
-------------
REAL ESTATE INVESTMENT TRUSTS -- 1.07%
Glenborough Realty Trust, Inc. ....................... 30,000 757,500
Golf Trust America, Inc. ............................. 20,000 556,250
-------------
1,313,750
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
- --------------------------------------------------------------------------------
Mini-Cap Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- -------------------------------------------------------- ---------- -------------
TECHNOLOGY
<S> <C> <C>
Hardware -- 1.63%
*FEI Co. .............................................. 50,000 $ 787,500
*Southern Electronics Corp. ........................... 40,000 515,000
*Vanstar Corp. ........................................ 50,000 706,250
-------------
2,008,750
-------------
Semiconductors -- 4.59%
*Burr Brown Corp. ..................................... 45,000 1,552,500
*Kulicke & Soffa Industries, Inc. ..................... 20,000 649,375
*PMC Sierra, Inc. ..................................... 50,000 1,312,500
*VLSI Technology, Inc. ................................ 40,000 945,000
Wyle Electronics ..................................... 30,000 1,185,000
-------------
5,644,375
-------------
Software -- 2.73%
*Broderbund Software, Inc. ............................ 40,000 987,500
*Citrix Systems, Inc. ................................. 45,000 1,974,375
*E Trade Group, Inc. .................................. 20,000 392,500
-------------
3,354,375
-------------
Miscellaneous Finance -- 0.76%
*Zytec Corp. .......................................... 50,000 937,500
-------------
TOTAL TECHNOLOGY...................................... 11,945,000
-------------
TRANSPORTATION
Airlines -- 0.55%
*Trans World Airlines, Inc. ........................... 80,000 675,000
-------------
Miscellaneous Transportation -- 1.91%
*Airnet Systems, Inc. ................................. 70,000 1,146,250
*Eagle USA Airfreight, Inc. ........................... 20,000 542,500
*Greyhound Lines, Inc. ................................ 150,000 665,625
-------------
2,354,375
-------------
TOTAL TRANSPORTATION.................................. 3,029,375
-------------
TOTAL COMMON STOCKS
(Cost $96,818,222)............................................... $ 115,895,781
-------------
<CAPTION>
Description Par Value Value
- -------------------------------------------------------- ---------- -------------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 0.81%
U.S. Treasury Bills
4.780%, 07/17/97
(Cost $997,816)...................................... $1,000,000 $ 997,816
-------------
COMMERCIAL PAPER -- 1.54%
Northern Rock
Building Society
5.570%, 07/14/97.................................... 1,000,000 997,989
Western Medical Services
5.570%, 07/07/97.................................... 900,000 899,164
-------------
TOTAL COMMERCIAL PAPER (Cost $1,897,153)..........................
$ 1,897,153
-------------
REPURCHASE AGREEMENT -- 3.99%
State Street Bank & Trust Co. $4,914,000 at 4.00%
(Agreement dated June 30, 1997; to be repurchased at
$4,914,546 on 07/01/97; collateralized by $4,965,000
U.S. Treasury Notes due 05/15/98) (Value $5,014,650)
(Cost $4,914,000).................................... 4,914,000 4,914,000
-------------
TOTAL INVESTMENTS -- 100.53%
(Cost $104,627,191)................................................ $ 123,704,750
-------------
Liabilities in Excess of Cash and Other Assets -- (0.53%)...........
(652,202)
-------------
NET ASSETS -- 100.00%............................................... $ 123,052,548
-------------
-------------
</TABLE>
- ------------------------------
* INDICATES NON-INCOME PRODUCING SECURITY.
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
- --------------------------------------------------------------------------------
Value + Growth Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- -------------------------------- ----------- ------------
<S> <C> <C>
COMMON STOCKS -- 90.11%
BASIC INDUSTRIES
Aluminum -- 1.01%
Reynolds Metals Co. .......... 3,400 $ 242,250
------------
Building Materials -- 1.09%
*ABT Building Products Corp. .. 10,000 262,500
------------
Chemicals -- 2.34%
Morton International, Inc. ... 10,300 310,931
OM Group, Inc. ............... 7,600 251,750
------------
562,681
------------
Iron/Steel -- 0.97%
*Ucar International, Inc. ..... 5,100 233,325
------------
Paper & Pulp -- 1.07%
*Asia Pulp & Paper Ltd. ....... 17,000 257,125
------------
TOTAL BASIC INDUSTRIES........ 1,557,881
------------
COMMUNICATIONS
Communications Equipment -- 5.05%
ECI Telecom, Limited ......... 22,000 654,500
*Octel Communications ......... 23,800 557,813
------------
1,212,313
------------
CONSUMER CYCLICALS
Retail: Food -- 1.50%
American Stores Co. .......... 7,300 360,438
------------
Toys -- 1.14%
Mattel, Inc. ................. 8,100 274,388
------------
TOTAL CONSUMER CYCLICALS...... 634,826
------------
CONSUMER SERVICES
Financial Misc. -- 2.29%
*Sabre Group Holdings ......... 11,000 298,375
Brunswick Corp. .............. 8,000 250,000
------------
548,375
------------
Publishing -- 2.62%
American Greetings Corp. ..... 10,900 404,663
McGraw Hill Companies, Inc. .. 3,800 223,488
------------
628,151
------------
Textiles -- 0.97%
*Gtech Holdings Corp. ......... 7,200 232,200
------------
TOTAL CONSUMER
SERVICES..................... 1,408,726
------------
CONSUMER STAPLES
Food -- 1.01%
Hormel Foods Corp. ........... 9,000 241,875
------------
<CAPTION>
Number of
Description Shares Value
- -------------------------------- ----------- ------------
<S> <C> <C>
ENERGY
Natural Gas -- 1.33%
K N Energy, Inc. ............. 7,600 $ 320,150
------------
Oil & Gas Services -- 3.63%
*Santa Fe International,
Inc. ........................ 7,200 244,800
Union Tex Petroleum Holdings,
Inc. ........................ 13,400 280,562
*Weatherford Enterra, Inc. .... 9,000 346,500
------------
871,862
------------
Oil: Integrated Domestic -- 1.46%
Vastar Resources, Inc. ....... 10,000 350,625
------------
TOTAL ENERGY.................. 1,542,637
------------
FINANCIAL
Banks -- 4.96%
Chase Manhattan Corp. ........ 5,800 562,962
Citicorp ..................... 5,200 626,925
------------
1,189,887
------------
Savings & Loans -- 3.98%
Roosevelt Financial Group,
Inc. ........................ 15,000 332,812
Washington Mutual, Inc. ...... 10,400 621,400
------------
954,212
------------
TOTAL FINANCIAL............... 2,144,099
------------
HEALTHCARE PRODUCTS
Drugs -- 2.05%
Abbott Labs .................. 3,800 253,650
*Biogen, Inc. ................. 7,000 237,125
------------
490,775
------------
Retail: Food -- 1.58%
Pep Boys Manny Moe & Jack .... 11,100 378,094
------------
TOTAL HEALTHCARE PRODUCTS..... 868,869
------------
HEALTHCARE SERVICES
HMOs -- 3.15%
*Medpartners, Inc. ............ 26,080 563,980
*Pacificare Health Systems .... 3,000 191,625
------------
755,605
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
- --------------------------------------------------------------------------------
Value + Growth Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- -------------------------------- ----------- ------------
Hospitals/Long-Term Care -- 5.75%
<S> <C> <C>
*Apria Healthcare Group
Inc. ........................ 10,700 $ 189,925
Columbia/HCA Healthcare
Corp. ....................... 12,500 491,406
*Foundation Health Systems,
Inc. ........................ 11,700 354,656
*Tenet HealthCare Corp. ....... 11,600 342,925
------------
1,378,912
------------
TOTAL HEALTHCARE SERVICES..... 2,134,517
------------
INDUSTRIAL PRODUCTS
Aerospace/Defense -- 3.49%
Lockheed Martin Corp. ........ 4,700 486,744
Northrop Grumman Corp. ....... 4,000 351,250
------------
837,994
------------
Equipment -- 3.15%
*3Com Corp. ................... 16,800 756,000
------------
Machinery -- 4.21%
Case Corp. ................... 8,600 592,325
Deere & Co. .................. 7,600 417,050
------------
1,009,375
------------
Manufacturing -- 3.48%
Eaton Corp. .................. 4,000 349,250
Greenfield Industries,
Inc. ........................ 18,000 486,000
------------
835,250
------------
Office Equipment -- 2.86%
Xerox Corp. .................. 8,700 686,212
------------
TOTAL INDUSTRIAL PRODUCTS..... 4,124,831
------------
<CAPTION>
Number of
Description Shares Value
- -------------------------------- ----------- ------------
<S> <C> <C>
INDUSTRIAL SERVICES
Construction -- 1.36%
Fluor Corp. .................. 5,900 $ 325,606
------------
INSURANCE
Life & Annuity Insurance -- 4.93%
AETNA Life & Casualty Co. .... 7,400 757,575
*Hartford Life, Inc. .......... 4,900 183,750
Protective Life Corp. ........ 4,800 241,200
------------
1,182,525
------------
Multi-line Insurance -- 1.55%
Cigna Corp. .................. 2,100 372,750
------------
Property/Casualty Insurance -- 2.52%
IPC Holdings Limited ......... 8,900 240,300
Amerin Corp. ................. 15,000 363,750
------------
604,050
------------
TOTAL INSURANCE............... 2,159,325
------------
TECHNOLOGY
Hardware -- 4.38%
*EMC Corp. .................... 15,000 585,000
*Zebra Technologies Corp. ..... 8,200 228,575
Wallace Computer Services,
Inc. ........................ 7,900 237,494
------------
1,051,069
------------
Semiconductors -- 2.91%
Dallas Semiconductor Corp. ... 6,400 251,200
*LSI Logic Corp. .............. 10,700 342,400
*MEMC Electronic Materials,
Inc. ........................ 3,200 104,800
------------
698,400
------------
Software -- 3.59%
Adobe Systems, Inc. .......... 7,400 259,462
Computer Associates
International, Inc. ......... 10,800 601,425
------------
860,887
------------
TOTAL TECHNOLOGY.............. 2,610,356
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
- --------------------------------------------------------------------------------
Value + Growth Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- -------------------------------- ----------- ------------
TRANSPORTATION
<S> <C> <C>
Railroads -- 1.08%
Illinois Central Corp. ....... 7,400 $ 258,538
------------
UTILITIES
Utility Service Providers -- 1.65%
*AES Corp. .................... 5,600 396,200
------------
TOTAL COMMON STOCKS
(Cost $17,643,854)........................ $ 21,620,599
------------
</TABLE>
<TABLE>
<CAPTION>
Description Par Value Value
- -------------------------------- ----------- ------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 7.46%
State Street Bank & Trust Co.
$1,791,000 at 4.00%
(Agreement dated June 30,
1997; to be repurchased at
$1,791,199 on 07/01/97;
collateralized by $1,810,000
U.S. Treasury Notes due
5/15/98) (Value $1,828,100)
(Cost $1,791,000)............ $1,791,000 $ 1,791,000
------------
TOTAL INVESTMENTS -- 97.57%
(Cost $19,434,854)........................ 23,411,599
------------
Cash and Other Assets, Net of Liabilities --
2.43%....................................... 582,248
------------
NET ASSETS -- 100.00%........................ $ 23,993,847
------------
------------
</TABLE>
- ------------------------------
* INDICATES NON-INCOME PRODUCING SECURITY.
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
- --------------------------------------------------------------------------------
Balanced Fund
<TABLE>
<CAPTION>
Description Par Value Value
- -------------------------------------------------------- ----------- -----------
<S> <C> <C>
CORPORATE BONDS -- 14.09%
Communications -- 2.71%
MCI Communications Corp.
7.125%, 06/15/27..................................... $ 750,000 $ 772,043
World Communications, Inc.
7.550%, 04/01/04..................................... 925,000 942,890
-----------
1,714,933
-----------
Entertainment -- 4.85%
Salomon Inc.
5.277%, 04/05/99..................................... 1,000,000 1,000,000
Time Warner, Inc.
6.850%, 01/15/26..................................... 1,000,000 993,620
Viacom International, Inc.
10.250%, 09/15/01.................................... 1,000,000 1,081,250
-----------
3,074,870
-----------
Financial Services -- 1.36%
Paine Webber Group, Inc.
9.250%, 12/15/01..................................... 800,000 864,280
-----------
Industrial -- 1.53%
Michaels Stores, Inc. (Convertible Bond)
6.750%, 01/15/03..................................... 500,000 462,500
Safeway Inc.
9.650%, 01/15/04..................................... 450,000 510,188
-----------
972,688
-----------
Natural Resources -- 0.83%
Indah Kiat International Finance Co.
11.375%, 06/15/99.................................... 500,000 525,625
-----------
Oil & Gas Services -- 1.61%
Gulf CDA Resources, Ltd.
9.000%, 08/15/99..................................... 500,000 523,750
Gulf CDA Resources, Ltd.
8.250%, 03/15/17..................................... 500,000 497,500
-----------
1,021,250
-----------
Retail: Food -- 1.19%
Coca Cola Enterprises, Inc.
6.700%, 10/15/36..................................... 750,000 752,175
-----------
Utilities -- 0.01%
Arkansas Power & Light Co.
10.000%, 02/01/20.................................... 4,000 4,291
-----------
<CAPTION>
Description Par Value Value
- -------------------------------------------------------- ----------- -----------
<S> <C> <C>
TOTAL CORPORATE BONDS
(Cost $8,870,494).................................... $ 8,930,112
-----------
<CAPTION>
Number of
Shares
-----------
<S> <C> <C>
COMMON STOCKS -- 49.73%
BASIC INDUSTRIES
Aluminum -- 1.03%
Reynolds Metals Co. .................................. 9,100 648,375
-----------
Chemicals -- 1.59%
OM Group, Inc. ....................................... 11,600 384,250
Morton International, Inc. ........................... 20,400 615,825
-----------
1,000,075
-----------
Forest Products -- 1.04%
*Asia Pulp & Paper, Ltd. .............................. 43,100 651,887
-----------
Iron/Steel -- 1.08%
Quanex Corp. ......................................... 10,000 306,875
*Ucar International, Inc. ............................. 8,100 370,575
-----------
677,450
-----------
TOTAL BASIC INDUSTRIES................................ 2,977,787
-----------
COMMUNICATIONS
Telecommunications Equipment -- 2.32%
ECI Telecom, Ltd. .................................... 35,100 1,044,225
*Octel Communications ................................. 18,300 428,906
-----------
1,473,131
-----------
CONSUMER CYCLICALS
Retail -- 0.66%
Dayton Hudson Corp. .................................. 7,900 420,181
-----------
Retail: Food -- 1.31%
American Stores Co. .................................. 9,500 469,063
Hannaford Brothers Co. ............................... 10,200 362,738
-----------
831,801
-----------
Toys -- 0.66%
Mattel, Inc. ......................................... 12,400 420,050
-----------
TOTAL CONSUMER CYCLICALS.............................. 1,672,032
-----------
CONSUMER SERVICES
Leisure -- 0.56%
Brunswick Corp. ...................................... 11,400 356,250
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
- --------------------------------------------------------------------------------
Balanced Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- -------------------------------------------------------- ----------- -----------
Publishing -- 1.56%
<S> <C> <C>
American Greetings Corp. ............................. 17,100 $ 634,837
McGraw Hill Companies, Inc. .......................... 6,000 352,875
-----------
987,712
-----------
Textiles -- 0.53%
*Gtech Holdings Corp. ................................. 10,400 335,400
-----------
TOTAL CONSUMER SERVICES............................... 1,679,362
-----------
ENERGY
Integrated Oil -- 0.38%
Vastar Resources, Inc. ............................... 6,800 238,425
-----------
Natural Gas -- 0.63%
K.N. Energy, Inc. .................................... 9,500 400,188
-----------
Oil and Gas Services -- 3.05%
Santa Fe International Corp. ......................... 11,200 380,800
Ultramar Diamond Shamrock ............................ 14,300 466,537
Union Tex Petroleum Holdings, Inc. ................... 21,400 448,062
*Weatherford Enterra, Inc. ............................ 16,650 641,025
-----------
1,936,424
-----------
TOTAL ENERGY.......................................... 2,575,037
-----------
FINANCIAL
Banks -- 2.29%
Chase Manhattan Corp. ................................ 8,900 863,856
Citicorp ............................................. 4,900 590,756
-----------
1,454,612
-----------
Savings & Loan -- 2.89%
Bank UTD Corp. ....................................... 9,700 368,600
Roosevelt Financial Group, Inc. ...................... 25,300 561,344
Washington Mutual, Inc. .............................. 15,100 902,225
-----------
1,832,169
-----------
TOTAL FINANCIAL....................................... 3,286,781
-----------
HEALTHCARE PRODUCTS
Drugs -- 1.53%
Abbott Labs .......................................... 9,400 627,450
*Biogen, Inc. ......................................... 10,100 342,137
-----------
969,587
-----------
<CAPTION>
Number of
Description Shares Value
- -------------------------------------------------------- ----------- -----------
<S> <C> <C>
Real Estate Investment Trusts -- 0.83%
*Pacificare Health Systems ............................ 8,700 526,894
-----------
Retail -- 0.85%
Pep Boys Manny Moe & Jack ............................ 15,800 $ 538,188
-----------
TOTAL HEALTHCARE PRODUCTS............................. 2,034,669
-----------
HEALTHCARE SERVICES
HMOs -- 1.49%
*Medpartners, Inc. .................................... 43,700 945,012
-----------
Hospitals/Long-Term Care -- 2.77%
*Apria HealthCare Group, Inc. ......................... 11,000 195,250
Columbia/HCA HealthCare Corp. ........................ 17,900 703,694
*Foundation Health Systems, Inc. ...................... 12,380 375,269
*Tenet HealthCare Corp. ............................... 16,300 481,869
-----------
1,756,082
-----------
TOTAL HEALTHCARE SERVICES............................. 2,701,094
-----------
INDUSTRIAL PRODUCTS
Aerospace/Defense -- 1.89%
Lockheed Martin Corp. ................................ 8,700 900,994
Northrop Grumman Corp. ............................... 3,400 298,563
-----------
1,199,557
-----------
Electronics: Equipment -- 1.63%
*3Com Corp. ........................................... 22,975 1,033,875
-----------
Machinery -- 1.94%
Case Corp. ........................................... 12,400 854,050
Deere & Co. .......................................... 6,800 373,150
-----------
1,227,200
-----------
Manufacturing: Diversified -- 1.54%
Eaton Corp. .......................................... 3,700 323,056
Greenfield Industries, Inc. .......................... 9,800 264,600
Parker Hannifin Corp. ................................ 6,400 388,400
-----------
976,056
-----------
Office Equipment -- 1.93%
Xerox Corp. .......................................... 15,500 1,222,562
-----------
TOTAL INDUSTRIAL PRODUCTS............................. 5,659,250
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
- --------------------------------------------------------------------------------
Balanced Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- -------------------------------------------------------- ----------- -----------
INDUSTRIAL SERVICES
<S> <C> <C>
Construction -- 0.79%
Fluor Corp. .......................................... 9,100 $ 502,206
-----------
INSURANCE
Life & Annuity Insurance -- 3.05%
AETNA Life & Casualty Co. ............................ 7,900 808,763
*Hartford Life Inc. ................................... 7,100 266,250
Protective Life Corp. ................................ 7,700 386,925
Reliastar Financial Corp. ............................ 6,500 475,312
-----------
1,937,250
-----------
Property/Casualty Insurance -- 1.10%
IPC Holdings, Ltd .................................... 12,900 348,300
Vesta Insurance Group, Inc. .......................... 8,150 352,488
-----------
700,788
-----------
TOTAL INSURANCE....................................... 2,638,038
-----------
REAL ESTATE INVESTMENT TRUSTS -- 0.33%
Security Cap Industrial Trust ........................ 9,800 210,700
-----------
TECHNOLOGY
Hardware -- 1.55%
*EMC Corp. ............................................ 17,400 678,600
Wallace Computer Services, Inc. ...................... 10,200 306,637
-----------
985,237
-----------
<CAPTION>
Number of
Description Shares Value
- -------------------------------------------------------- ----------- -----------
<S> <C> <C>
Semiconductors -- 1.20%
*LSI Logic Corp. ...................................... 16,700 $ 534,400
*MEMC Electronic Materials, Inc. ...................... 6,900 225,975
-----------
760,375
-----------
Software -- 1.76%
Adobe Systems, Inc. .................................. 8,700 305,044
Computer Associates International, Inc. .............. 14,600 813,037
-----------
1,118,081
-----------
TOTAL TECHNOLOGY...................................... 2,863,693
-----------
TRANSPORTATION
Railroad -- 0.97%
Illinois Central Corp. ............................... 17,600 614,900
-----------
UTILITIES
Utility Service Providers -- 1.00%
*AES Corp. ............................................ 9,000 636,750
-----------
TOTAL COMMON STOCKS
(Cost $23,256,516)................................................ $31,525,430
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
- --------------------------------------------------------------------------------
Balanced Fund
<TABLE>
<CAPTION>
Description Par Value Value
- -------------------------------------------------------- ----------- -----------
ASSET BACKED SECURITIES -- 4.22%
<S> <C> <C>
Collateralized Mortgage Obligations -- 0.30%
+GE Capital Mortgage Services, Inc.
3.478%, 10/25/08 .................................... $ 3,072,687 $ 191,430
-----------
Federal Home Loan Mortgage Corporation -- 1.43%
5.000%, 07/01/01 ..................................... 944,551 908,982
-----------
Federal National Mortgage Association -- 1.68%
7.100%, 04/12/06 ..................................... 500,000 437,970
8.250%, 10/17/23 ..................................... 618,319 627,593
-----------
1,065,563
-----------
Government National Mortgage Association -- 0.81%
+12.421%, 04/16/17 .................................... 493,169 513,975
-----------
TOTAL ASSET BACKED SECURITIES (Cost $2,602,390)....................
$ 2,679,950
-----------
INTEREST ONLY SECURITIES -- 6.56%
Federal Home Loan Mortgage Corporation -- 4.42%
10.065%, 12/15/21 .................................... 2,910,000 895,775
11.160%, 12/15/05 .................................... 3,346,808 715,432
10.311%, 01/15/17 .................................... 2,869,000 828,958
+1.050%, 04/15/08 ..................................... 8,250,358 166,803
+3.228%, 05/15/08 ..................................... 3,958,887 194,497
-----------
2,801,465
-----------
Federal National Mortgage Association -- 2.14%
+3.881%, 09/25/15 ..................................... 7,731,924 276,709
+3.281%, 04/25/23 ..................................... 5,812,998 431,934
+2.600%, 8/18/15 ...................................... 12,544,251 388,648
+3.528%, 07/25/22 ..................................... 4,679,657 256,275
-----------
1,353,566
-----------
TOTAL INTEREST ONLY SECURITIES (Cost $3,946,570)...................
$ 4,155,031
-----------
<CAPTION>
Description Par Value Value
- -------------------------------------------------------- ----------- -----------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 14.12%
U.S. Treasury Bills -- 3.15%
4.880%, 07/17/97 ..................................... $ 2,000,000 $ 1,995,662
-----------
U.S. Treasury Bonds -- 1.85%
7.500%, 11/15/16 ..................................... 1,100,000 1,175,923
-----------
U.S. Treasury Notes -- 8.15%
8.000%, 05/15/01 ..................................... 3,000,000 3,169,110
6.250%, 08/31/00 ..................................... 2,000,000 1,999,780
-----------
5,168,890
-----------
U.S. Treasury STRIP -- 0.97%
11/15/09 ............................................. 1,400,000 611,367
-----------
TOTAL U.S. TREASURY OBLIGATIONS (Cost $8,979,207)..................
$ 8,951,842
-----------
COMMERCIAL PAPER -- 3.15%
National Power PLC
5.560%, 07/02/97
(Cost $1,999,691).................................... 2,000,000 1,999,691
-----------
REPURCHASE AGREEMENT -- 6.14%
State Street Bank & Trust Co. $3,895,000 at 4.00%
(Agreement dated June 30, 1997; to be repurchased at
$3,895,433 on 07/01/97; collateralized by $3,935,000
U.S. Treasury Notes due 5/15/98) (Value $3,974,350)
(Cost $3,895,000).................................... 3,895,000 3,895,000
-----------
TOTAL INVESTMENTS -- 98.01%
(Cost $53,549,868).................................................. 62,137,056
-----------
Cash and Other Assets in Excess of Liabilities -- 1.99%..............
1,261,085
-----------
NET ASSETS -- 100.00%................................................ $63,398,141
-----------
-----------
</TABLE>
- ------------------------------
* INDICATES NON-INCOME PRODUCING SECURITY.
+ INVERSE FLOATING RATE SECURITIES.
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Mini-Cap Value + Balanced
Fund Growth Fund Fund
----------- ----------- -----------
<S> <C> <C> <C>
ASSETS
Investments in securities at market value
(cost of $104,627,191, $19,434,854,
$53,549,868).............................. $123,704,750 $23,411,599 $62,137,056
Cash....................................... 682,878 197
Receivables:
Investment securities sold............... 124,996 424,262 781,912
Income receivable........................ 22,056 33,922 407,861
Fund shares sold......................... 217,072 138,107 119,416
Due from investment adviser (Note 3)....... -- 16,662 --
Deferred organization costs................ 20,944 20,944 6,059
----------- ----------- -----------
Total assets........................... 124,772,696 24,045,693 63,452,304
----------- ----------- -----------
LIABILITIES
Funds advance by custodian................. -- -- 8,966
Payables:
Investment securities purchased.......... 1,556,541 -- --
Fund shares repurchased.................. 15,769 -- --
Dividends................................ -- -- 9,089
Accrued expenses......................... 147,838 51,846 36,108
----------- ----------- -----------
Total liabilities...................... 1,720,148 51,846 54,163
----------- ----------- -----------
NET ASSETS................................. $123,052,548 $23,993,847 $63,398,141
----------- ----------- -----------
----------- ----------- -----------
COMPOSITION OF NET ASSETS
Paid-in capital.......................... $94,585,171 $18,000,170 $49,973,311
Accumulated undistributed net investment
income (loss)........................... (90,775) -- 52,722
Accumulated net realized gain............ 9,480,593 2,016,932 4,784,920
Net unrealized appreciation.............. 19,077,559 3,976,745 8,587,188
----------- ----------- -----------
NET ASSETS................................. $123,052,548 $23,993,847 $63,398,141
----------- ----------- -----------
----------- ----------- -----------
Number of shares, $0.01 par value, issued
and outstanding (unlimited shares
authorized)............................... 5,635,823 1,475,048 3,945,200
----------- ----------- -----------
----------- ----------- -----------
NET ASSET VALUE PER SHARE.................. $ 21.83 $ 16.27 $ 16.07
----------- ----------- -----------
----------- ----------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
STATEMENTS OF OPERATIONS
For the year ended June 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Mini-Cap Value + Balanced
Fund Growth Fund Fund
---------- ----------- ----------
<S> <C> <C> <C>
INVESTMENT INCOME
Income
Dividend income............................. $ 827,996 $240,900 $ 409,947
Interest income............................. 698,718 101,403 1,678,892
---------- ----------- ----------
Total income.............................. 1,526,714 342,303 2,088,839
---------- ----------- ----------
Expenses (Note 3)
Investment advisory fees.................... 1,077,995 169,002 456,988
Custodian fees.............................. 97,344 63,945 59,745
Transfer agent fees......................... 77,972 51,391 55,487
Legal fees.................................. 23,355 9,340 8,838
Administration fees......................... 53,945 53,945 53,945
Audit fees.................................. 13,131 11,260 11,024
Shareholder reporting fees.................. 34,766 9,007 16,225
Registration fees........................... 5,750 10,848 1,929
Trustees fees............................... 12,042 11,256 13,169
Amortization of deferred organization
costs...................................... 9,366 9,366 2,537
Shareholder service fees.................... 17,869 3,611 9,491
Miscellaneous............................... 62,937 13,647 10,801
Insurance................................... 13,052 3,503 7,022
---------- ----------- ----------
Total expenses............................ 1,499,524 420,121 707,201
Expenses recouped (reimbursed)............ 117,965 (168,152) (27,549)
---------- ----------- ----------
Net expenses.............................. 1,617,489 251,969 679,652
---------- ----------- ----------
Net investment income (loss)................ $ (90,775) $ 90,334 $1,409,187
---------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS
Net realized gain on investments.............. $9,560,902 3$,138,603 $5,924,699
Change in net unrealized appreciation on
investments.................................. 12,401,072 2,300,581 4,204,111
---------- ----------- ----------
Net gain on investments....................... 21,961,974 5,439,184 10,128,810
---------- ----------- ----------
Net increase in net assets resulting from
operations................................... $21,871,199 5$,529,518 $11,537,997
---------- ----------- ----------
---------- ----------- ----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
For the years ended June 30, 1997 and 1996
------------------------------------------------------------------------
<TABLE>
<CAPTION>
Mini-Cap Fund
------------------------
1997 1996
----------- -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................... $ (90,775) $ (115,130)
Net realized gain on investments...................... 9,560,902 4,268,271
Change in net unrealized appreciation on
investments.......................................... 12,401,072 5,353,486
----------- -----------
Net increase in net assets from operations............ 21,871,199 9,506,627
----------- -----------
Distributions to shareholders:
From net investment income............................ -- --
From net realized gains............................... (3,190,683) (1,304,062)
----------- -----------
Total distributions................................... (3,190,683) (1,304,062)
----------- -----------
Fund share transactions:
Proceeds from shares sold............................. 79,855,448 80,695,971
Net asset value of shares issued on reinvestment of
distributions........................................ 2,999,212 1,244,984
Cost of shares redeemed............................... (71,179,955) (7,843,000)
----------- -----------
Net increase from Fund share transactions............. 11,674,705 74,097,955
----------- -----------
Net increase in net assets.............................. 30,355,221 82,300,520
NET ASSETS
Beginning of year....................................... 92,697,327 10,396,807
----------- -----------
End of year............................................. $123,052,548 $92,697,327
----------- -----------
----------- -----------
CHANGE IN SHARES
Shares sold............................................. 4,230,103 4,666,779
Shares issued on reinvestment of distributions.......... 161,334 81,769
Shares redeemed......................................... (3,797,059) (443,276)
----------- -----------
Net increase............................................ 594,378 4,305,272
----------- -----------
----------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
For the years ended June 30, 1997 and 1996
------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value + Growth Fund
------------------------
1997 1996
----------- -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income................................. $ 90,334 $ 133,782
Net realized gain on investments...................... 3,138,603 1,086,169
Change in net unrealized appreciation on
investments.......................................... 2,300,581 753,390
----------- -----------
Net increase in net assets from operations............ 5,529,518 1,973,341
----------- -----------
Distributions to shareholders:
From net investment income............................ (90,334) (162,305)
From net realized gains............................... (1,724,310) (608,062)
----------- -----------
Total distributions................................... (1,814,644) (770,367)
----------- -----------
Fund share transactions:
Proceeds from shares sold............................. 11,214,419 9,377,707
Net asset value of shares issued on reinvestment of
distributions........................................ 1,766,339 755,296
Cost of shares redeemed............................... (13,957,484) (3,068,816)
----------- -----------
Net increase from Fund share transactions............. (976,726) 7,064,187
----------- -----------
Net increase in net assets.............................. 2,738,148 8,267,161
NET ASSETS
Beginning of year....................................... 21,255,699 12,988,538
----------- -----------
End of year............................................. $23,993,847 $21,255,699
----------- -----------
----------- -----------
CHANGE IN SHARES
Shares sold............................................. 800,854 708,374
Shares issued on reinvestment of distributions.......... 128,814 58,676
Shares redeemed......................................... (1,006,898) (228,057)
----------- -----------
Net increase (decrease)................................. (77,230) 538,993
----------- -----------
----------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
For the years ended June 30, 1997 and 1996
------------------------------------------------------------------------
<TABLE>
<CAPTION>
Balanced Fund
------------------------
1997 1996
----------- -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income................................. $ 1,409,187 $ 1,346,411
Net realized gain on investments...................... 5,924,699 4,394,771
Change in net unrealized appreciation (depreciation)
on investments....................................... 4,204,111 (440,439)
----------- -----------
Net increase in net assets from operations............ 11,537,997 5,300,743
----------- -----------
Distributions to shareholders:
From net investment income............................ (1,356,465) (1,353,974)
From net realized gains............................... (4,582,193) (1,629,511)
----------- -----------
Total distributions................................... (5,938,658) (2,983,485)
----------- -----------
Fund share transactions:
Proceeds from shares sold............................. 13,993,658 13,585,582
Net asset value of shares issued on reinvestment of
distributions........................................ 5,763,051 2,870,134
Cost of shares redeemed............................... (8,937,283) (10,629,958)
----------- -----------
Net increase from Fund share transactions............. 10,819,426 5,825,758
----------- -----------
Net increase in net assets.............................. 16,418,765 8,143,016
NET ASSETS
Beginning of year....................................... 46,979,376 38,836,360
----------- -----------
End of year............................................. $63,398,141 $46,979,376
----------- -----------
----------- -----------
CHANGE IN SHARES
Shares sold............................................. 944,650 944,421
Shares issued on reinvestment of distributions.......... 397,810 201,472
Shares redeemed......................................... (596,248) (728,972)
----------- -----------
Net increase............................................ 746,212 416,921
----------- -----------
----------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Mini-Cap Fund
---------------------------------------
For the periods
---------------------------------------
07/01/96 07/01/95 09/30/94+
to 06/30/97 to 06/30/96 to 06/30/95
----------- ----------- -----------
<S> <C> <C> <C>
Net asset value, beginning of period............................................ $ 18.39 $ 14.12 $ 10.00
----------- ----------- -----------
Income from investment operations
Net investment income (loss).................................................. (0.01) (0.02) 0.01
Net realized and unrealized gain on investments............................... 4.04 5.25 4.13
----------- ----------- -----------
Total from investment operations............................................ 4.03 5.23 4.14
----------- ----------- -----------
Less distributions
From net investment income.................................................... -- -- (0.02)
From net realized gains....................................................... (0.59) (0.96) --
----------- ----------- -----------
Total distributions............................................................. (0.59) (0.96) (0.02)
----------- ----------- -----------
Net asset value, end of period.................................................. $ 21.83 $ 18.39 $ 14.12
----------- ----------- -----------
----------- ----------- -----------
Total return.................................................................... 22.45% 38.46% 41.47%**
----------- ----------- -----------
----------- ----------- -----------
Net assets at end of period
(in 000's)..................................................................... $123,053 $92,697 $10,397
----------- ----------- -----------
----------- ----------- -----------
Ratio of expenses to average net assets (net of expense reimbursements)(1)...... 1.50% 1.50% 1.50%*
----------- ----------- -----------
----------- ----------- -----------
Ratio of net investment income (loss) to average net assets..................... (0.08)% (0.35)% 0.04%*
----------- ----------- -----------
----------- ----------- -----------
Portfolio turnover rate......................................................... 304.88% 214.71% 102.85%
----------- ----------- -----------
----------- ----------- -----------
Average commission rate paid.................................................... $0.0054
-----------
-----------
<CAPTION>
Value + Growth Fund
---------------------------------------
For the periods
---------------------------------------
07/01/96 07/01/95 09/30/94+
to 06/30/97 to 06/30/96 to 06/30/95
----------- ----------- -----------
<S> <C> <C> <C>
Net asset value, beginning of period............................................ $ 13.69 $ 12.82 $ 10.00
----------- ----------- -----------
Income from investment operations
Net investment income (loss).................................................. 0.10 0.11 0.05
Net realized and unrealized gain on investments............................... 4.03 1.40 2.79
----------- ----------- -----------
Total from investment operations............................................ 4.13 1.51 2.84
----------- ----------- -----------
Less distributions
From net investment income.................................................... (0.10) (0.13) (0.02)
From net realized gains....................................................... (1.45) (0.51) --
----------- ----------- -----------
Total distributions............................................................. (1.55) (0.64) (0.02)
----------- ----------- -----------
Net asset value, end of period.................................................. $ 16.27 $ 13.69 $ 12.82
----------- ----------- -----------
----------- ----------- -----------
Total return.................................................................... 32.38% 12.11% 28.43%**
----------- ----------- -----------
----------- ----------- -----------
Net assets at end of period
(in 000's)..................................................................... $23,994 $21,256 $12,989
----------- ----------- -----------
----------- ----------- -----------
Ratio of expenses to average net assets (net of expense reimbursements)(1)...... 1.26% 1.35% 1.35%*
----------- ----------- -----------
----------- ----------- -----------
Ratio of net investment income (loss) to average net assets..................... 0.45% 0.78% 1.18%*
----------- ----------- -----------
----------- ----------- -----------
Portfolio turnover rate......................................................... 160.13% 101.05% 31.64%
----------- ----------- -----------
----------- ----------- -----------
Average commission rate paid.................................................... $0.0193
-----------
-----------
</TABLE>
- --------------------------
* ANNUALIZED
** NOT ANNUALIZED
+ FUND COMMENCED OPERATIONS ON SEPTEMBER 30, 1994.
(1) THE RATIOS OF EXPENSES TO AVERAGE NET ASSETS BEFORE EXPENSE REIMBURSEMENTS
OR EXPENSES RECOUPED WERE 1.39%, 1.74%, AND 4.99% FOR THE MINI-CAP FUND FOR
THE PERIODS ENDED JUNE 30, 1997, 1996, AND 1995, RESPECTIVELY. THE RATIOS
OF EXPENSES TO AVERAGE NET ASSETS BEFORE EXPENSE REIMBURSEMENTS WERE 2.11%,
2.12%, AND 5.21% FOR THE VALUE + GROWTH FUND FOR THE PERIODS ENDED JUNE 30,
1997, 1996, AND 1995, RESPECTIVELY.
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Balanced Fund
-----------------------------------------------------
For the periods
-----------------------------------------------------
07/01/96 07/01/95 10/01/94 11/01/93
to 08/30/97 to 06/30/96 to 06/30/95 to 09/30/94
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period............................. $ 14.69 $ 13.96 $ 12.41 $ 12.82
----------- ----------- ----------- -----------
Income from investment operations
Net investment income.......................................... 0.38 0.43 0.24 0.16
Net realized and unrealized gain on investments................ 2.78 1.27 1.59 0.05
----------- ----------- ----------- -----------
Total from investment operations............................. 3.16 1.70 1.83 0.21
----------- ----------- ----------- -----------
Less distributions
From net investment income..................................... (0.37) (0.43) (0.24) (0.18)
From net realized gains........................................ (1.41) (0.54) (0.04) (0.44)
----------- ----------- ----------- -----------
Total distributions............................................ (1.78) (0.97) (0.28) (0.62)
----------- ----------- ----------- -----------
Net asset value, end of period................................... $ 16.07 $ 14.69 $ 13.96 $ 12.41
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Total return..................................................... 23.12% 12.56% 14.98%(2) 3.66%(2)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Net assets at end of period
(in 000's)...................................................... $63,398 $46,979 $38,836 $34,659
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Ratio of expenses to average net assets (net of expense
reimbursements)(3).............................................. 1.26% 1.35% 1.33%* 1.63%*
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Ratio of net investment income to average net assets............. 2.62% 2.98% 2.51%* 1.77%*
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Portfolio turnover rate.......................................... 91.90% 69.11% 54.02% 60.90%
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Average commission rate paid $0.0021
-----------
-----------
<CAPTION>
03/09/92
11/01/92 to
to 10/31/93 10/31/92 (1)
----------- -----------
<S> <C> <C>
Net asset value, beginning of period............................. $ 10.84 $ 10.00
----------- -----------
Income from investment operations
Net investment income.......................................... 0.16 0.11
Net realized and unrealized gain on investments................ 1.98 0.83
----------- -----------
Total from investment operations............................. 2.14 0.94
----------- -----------
Less distributions
From net investment income..................................... (0.16) (0.10)
From net realized gains........................................ -- --
----------- -----------
Total distributions............................................ (0.16) (0.10)
----------- -----------
Net asset value, end of period................................... $ 12.82 $ 10.84
----------- -----------
----------- -----------
Total return..................................................... 19.83% 9.42%(2)
----------- -----------
----------- -----------
Net assets at end of period
(in 000's)...................................................... $20,931 $ 6,008
----------- -----------
----------- -----------
Ratio of expenses to average net assets (net of expense
reimbursements)(3).............................................. 1.47% 1.50%*
----------- -----------
----------- -----------
Ratio of net investment income to average net assets............. 1.51% 1.93%*
----------- -----------
----------- -----------
Portfolio turnover rate.......................................... 44.12% 20.00%
----------- -----------
----------- -----------
Average commission rate paid
</TABLE>
- --------------------------
* ANNUALIZED
(1) THE JURIKA & VOYLES BALANCED FUND COMMENCED OPERATIONS ON MARCH 9, 1992.
(2) NOT ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
(3) THE RATIOS OF EXPENSES TO AVERAGE NET ASSETS BEFORE EXPENSE REIMBURSEMENTS
WERE 1.31%, 1.49%, AND 1.42% FOR THE BALANCED FUND FOR THE PERIODS ENDED
JUNE 30, 1997, 1996, AND 1995, RESPECTIVELY.
SEE NOTES TO FINANCIAL STATEMENTS.
25
<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.
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.
26
<PAGE>
NOTES TO FINANCIAL STATEMENTS CONTINUED
- --------------------------------------------------------------------------------
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 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. Transactions in Shares of Beneficial Interest
The Funds currently offer only one class of shares of beneficial interest,
Class J shares. From December 31, 1996 to June 6, 1997 the Funds offered a
second class of shares, Class K shares, which were substantially identical to
Class J shares. On June 6, 1997, all previously existing Class K shares of each
Fund were converted at net asset value into Class J shares of an equivalent
value. Included in the statements of changes in net assets under the captions
"Fund share transactions" and "Change in shares" are transactions in shares of
beneficial interest for Class K as follows. There were no Class K shares
outstanding as of June 30, 1996 or 1997.
<TABLE>
<CAPTION>
Mini-Cap Fund Shares Amount
- ---------------------------------- --------- ----------
<S> <C> <C>
Period from December 31, 1996 to
June 6, 1997
Class K Shares:
Shares sold..................... 4,472 $ 86,550
Shares issued on reinvestment of
distributions.................. -- --
Shares redeemed................. (4,472) (89,700)
--------- ----------
Net decrease.................... -- $ (3,150)
--------- ----------
--------- ----------
<CAPTION>
Value + Growth Fund Shares Amount
- ---------------------------------- --------- ----------
<S> <C> <C>
Period from December 31, 1996 to
June 6, 1997
Class K shares:
Shares sold..................... 83 $ 1,150
Shares issued on reinvestment of
distributions.................. -- --
Shares redeemed................. (83) (1,173)
--------- ----------
Net decrease.................... -- $ (23)
--------- ----------
--------- ----------
<CAPTION>
Balanced Fund
- ----------------------------------
<S> <C> <C>
Period from December 31, 1996 to
June 6, 1997
Class K shares:
Shares sold..................... 79 $ 1,150
Shares issued on reinvestment of
distributions.................. 1 8
Shares redeemed................. (80) (1,193)
--------- ----------
Net decrease.................... -- $ (35)
--------- ----------
--------- ----------
</TABLE>
4. Management Fees and Transactions with
Affiliates
The Trust, on behalf of the Funds, entered into an Investment Advisory
Agreement with Jurika & Voyles, L.P., formerly known as Jurika & Voyles, Inc.,
(the "Adviser"). Under the terms of the 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
1.25% for the Value + Growth Fund and Balanced Fund, and 1.50% for Mini-Cap
Fund. Prior to October 1, 1996 the expense limitation for the Value + Growth
Fund and the Balanced Fund was 1.35%. In subsequent years, overall operating
expenses of each Fund will not fall below the applicable expense
27
<PAGE>
NOTES TO FINANCIAL STATEMENTS CONTINUED
- --------------------------------------------------------------------------------
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, 1997 amounted to $63,469, $402,127 and
$111,888, for the Mini-Cap, Value + Growth and Balanced Funds, respectively.
Pursuant to a Shareholder Services Plan, effective June 9, 1997, the Fund
pays to the Adviser a shareholder service fee not to exceed 0.25% of the Fund's
average daily net assets.
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 and $12,000 for each additional class
of shares.
Each unaffiliated Trustee is compensated by the Trust at $5,000 per year
plus an attendance fee of $500 for each Trustees' meeting attended.
5. 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, 1997, are as follows:
<TABLE>
<CAPTION>
Funds Purchases Sales
- -------------------------------------------------------- ----------- -----------
<S> <C> <C>
Mini-Cap Fund........................................... $309,841,041 $287,239,730
Value + Growth Fund..................................... 28,060,897 28,756,726
Balanced Fund........................................... 44,918,576 39,568,794
</TABLE>
The total cost of securities and the aggregate gross unrealized appreciation
and depreciation for securities held by the Funds at June 30, 1997, based on
cost for federal income tax purposes, are as follows:
<TABLE>
<CAPTION>
Gross Gross Net
Total Tax Unrealized Unrealized Unrealized
Funds Cost Appreciation Depreciation Appreciation
- ---------------------------- ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Mini-Cap Fund............... $105,201,125 $19,603,840 $(1,100,215) $18,503,625
Value + Growth Fund......... 19,522,856 4,024,606 (135,863) 3,888,743
Balanced Fund............... 53,549,868 9,006,136 (418,948) 8,587,188
</TABLE>
6. Line of Credit
The Trust has a $10 million unsecured line of credit with its custodian
bank. The interest rate charged on borrowings is the Overnight Federal Funds
rate, plus 0.50%. Each Fund pays its pro rata share of a commitment fee of 0.10%
of the unused portion of the commitment. There were no borrowings under this
commitment during the year ended June 30, 1997.
28
<PAGE>
INDEPENDENT AUDITOR'S REPORT
------------------------------------------------------------------------
To 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, 1997, and the related statements of operations for the year then ended,
the statements of changes in net assets for each of the two years in the period
then ended, and the financial highlights for each of the two years in the period
then ended, 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. These 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 at June 30,
1997, 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 as of June 30, 1997, 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.
[SIG]
New York, New York
July 25, 1997
29
<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
----------------------------------
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