Semi-Annual Report
December 31, 1996
Mini-Cap Fund
Value + Growth Fund
Balanced Fund
J U R I K A & V O Y L E S
Fund Group
<PAGE>
TABLE OF CONTENTS
Letter to Shareholders .................................................... 1
Performance
Mini-Cap Fund ............................................................. 2
Value + Growth Fund ....................................................... 4
Balanced Fund ............................................................. 6
Schedules of Investments .................................................. 8
Statements of Assets and Liabilities ...................................... 20
Statements of Operations .................................................. 21
Statements of Changes in Net Assets ....................................... 22
Financial Highlights ...................................................... 25
Notes to Financial Statements ............................................. 27
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
Heller, Ehrman, White & McAuliffe, 333 Bush Street, San Francisco, CA 94104
Auditor
McGladrey & Pullen, LLP, 555 Fifth Avenue, 8th Floor, New York, NY 10017
This report is authorized for distribution to shareholders and to others only
when preceded or accompanied by a current prospectus for Jurika & Voyles Fund
Group. Distributor: First Fund Distributors, Inc.
i
<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 six-month period ended December 31, 1996.
As always, we stand ready to serve you. If you have any questions, please
do not hesitate to call our Investor Center at (800) JV-INVST (800-584-6878).
Thank you for your continued support.
Very truly yours,
/s/ William K. Jurika /s/ Glenn C. Voyles
William K. Jurika Glenn C. Voyles
Jurika & Voyles, L.P. Jurika & Voyles, L.P.
1
<PAGE>
PERFORMANCE
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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 9.32% during the second half of 1996
versus 5.56% for the Russell 2000 Index and 0.38% for the Lipper Small Company
Index. The Fund's performance benefited from an overweighted position in the
consumer, energy, and real estate sectors. The best performing stocks included
Central Garden & Pet, the leading distributor in a very specialized niche --
lawn, garden and pet supplies; Gardner Denver Machinery, a manufacturer of
compressors for use in industrial applications and pumps and drilling equipment
for the oil industry; Tuboscope Vetco, a supplier of tubular coating and
inspection services in the oil & gas service business; and Tuesday Morning, a
deep discount retailer in the midst of a turn around.
In the Mini-Cap Fund, we seek to identify investment opportunities from both
a value and growth perspective. We limit market risk with our low P/E ratio
criteria and limit financial risk by selecting companies with strong balance
sheets and cash flows. We seek to avoid companies in a cyclical business,
companies with a high exposure to a small number of customers or suppliers,
companies which use extreme amounts of debt financing, and companies with little
or no profitable operating history. We can enjoy the benefits of rising profits
and multiple expansion through an early recognition of an undiscovered growth
catalyst, new market opportunity, utilization of technology to enhance
leadership, strong market share in a niche, or cost leverage opportunity. With
this approach we are able to identify investments which can perform well in
strong as well as weak markets.
Economic Outlook: We are constructive on the economy, and would not be
surprised if growth exceeded the consensus estimate of 2.5% for 1997 with
inflation under control - the risk to this picture coming from rising commodity
prices and higher wages. We anticipate a stronger relative year for small-cap
stocks. The economic environment with low interest rates, continued large
company downsizing, and technology enabling entrepreneurs has never been more
favorable for smaller companies.
Current Positioning: We expect continued market volatility during 1997. We
have already seen this early in the year with aggressive profit taking in the
energy and real estate sectors. While we are careful to recognize profits when
valuations move to excessive levels, the volatility offers opportunities to find
excellent businesses with strong earnings growth selling at low valuations. The
health care and selective retail sectors are showing selective opportunities. We
continue to seek well-managed companies that have been punished in the market
after having minor, temporary earnings shortfalls from analyst expectations,
while underlying business trends continue strong; as well as new and
undiscovered stocks. Some themes we expect to do well include financial services
for the individual investor, consolidation in mature industries, continued
outsourcing and technology-driven oil services.
2
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PERFORMANCE
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Mini-Cap Fund
Comparison of Change in Value of a $10,000 Investment in
Jurika & Voyles Mini-Cap Fund with Lipper Small Company Fund Index and Russell
2000 Index
<TABLE>
<CAPTION>
Date Jurika & Voyles Mini-Cap Fund Lipper Small Company Fund Index Russell 2000 Index
<C> <C> <C> <C>
09/30/94 10,000.00 10,000.00 10,000.00
10/31/94 10,410.00 10,167.84 9,960.00
11/30/94 10,400.00 9,766.28 9,557.42
12/31/94 10,650.00 9,987.43 9,813.55
01/31/95 10,409.55 9,868.24 9,690.04
02/28/95 11,211.05 10,273.90 10,093.03
03/31/95 11,832.22 10,547.80 10,265.63
04/30/95 12,814.06 10,694.58 10,493.65
05/31/95 13,244.87 10,861.88 10,674.16
06/30/95 14,146.57 11,525.03 11,227.98
07/31/95 15,358.84 12,393.19 11,874.83
08/31/95 15,278.69 12,610.78 12,120.66
09/30/95 15,509.13 12,965.86 12,337.60
10/31/95 15,148.45 12,565.13 11,786.15
11/30/95 16,070.18 12,998.39 12,280.99
12/31/95 16,210.44 13,145.45 12,605.20
01/31/96 15,816.36 13,083.67 12,519.34
02/29/96 16,689.73 13,609.05 12,984.19
03/31/96 17,690.90 13,885.96 13,249.06
04/30/96 19,682.59 14,993.85 13,957.89
05/31/96 20,502.69 15,643.33 14,507.83
06/30/96 19,597.38 15,013.26 13,911.56
07/31/96 18,574.91 13,555.47 12,697.08
08/31/96 19,384.37 14,376.93 13,434.78
09/30/96 19,948.86 15,202.17 13,960.08
10/31/96 20,034.06 14,733.94 13,745.09
11/29/96 21,006.16 15,005.05 14,311.39
12/31/96 21,423.65 15,068.07 14,686.35
</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
semi-annual period on December 31, 1996. For purposes of the graph and the
Fund's Annualized Return Since Inception and One Year Total Return, it has been
assumed that all recurring fees (including management fees) were deducted and
all distributions were reinvested.
Total return of the Fund reflects the fact that all fees and expenses, in
excess of certain expense limits specified in the investment management
agreement, have been assumed by Jurika & Voyles, Inc.
Lipper Small Company Fund Index is an unmanaged, net asset value weighted
index of 30 mutual funds that invest primarily in companies with small market
capitalization. Russell 2000 Index is a widely regarded small-cap index of the
2,000 smallest securities of the Russell 3000 Index which comprises the 3,000
largest U.S. securities as determined by total market capitalization.
Each index reflects the reinvestment of income dividends and capital
gains distributions, if any, but does not reflect fees, brokerage commissions,
or other expenses of investing. All results are historical. Past performance is
no guarantee of future results.
3
<PAGE>
PERFORMANCE
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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: Overall, it was an excellent period for the Value + Growth Fund which
provided our investors with superior return for the second half of 1996.
The Value + Growth Fund returned 13.01% for the second half of 1996 versus
11.68% for the S&P 500 and 8.82% for the Lipper Growth Fund Index. For the total
year 1996, the Value + Growth Fund returned 20.31% versus 22.95% for the S&P
500. The returns for the S&P 500 have been driven largely by the large
capitalization growth stocks, which are selling at increasingly high price to
earning ratios.
We remain focused on stocks with lower valuations due to our concerns about
the risk levels in the market in general, and in large capitalization stocks in
particular. We believe investor expecations that 1997's market returns will be
similar to those realized in 1996 are a bit aggressive and reflect a discounted
appreciation of the risk associated with those expectations.
At year end, the major sectors weightings were in healthcare, financial
services and technology. During the second half of 1996, we increased healthcare
from 7% of the portfolio to 16.7%. This sector performed poorly in the second
half providing us an opportunity to invest in a growing sector at attractive
valuations levels: We beleive performance will improve when Congress clarifies
its plans for funding healthcare programs. The market does not like uncertainty.
Financial services stocks, representing 11.1% of the portfolio, generated
strong performance. Technology stocks were volatile, but performed reasonably
well. Overall we continue to have a significant weighting in this sector, as we
believe it is a major engine for growth and productivity in the economy. Because
of our defensive feelings about the market, we built 6% investment in REIT's
which offered the Fund an attractive yield with relatively low volatility.
During the last two weeks of December, we received a significant inflow of
money from investors, which increased our cash position to approximately 21.5%
at year end.
Current Positioning: As we go into 1997 we remain relatively defensive in our
portfolio positioning. As the market becomes increasingly expensive relative to
historical levels, the likelihood that the efficiency of the market will drive
prices back towards historical norms will increase. Although cash levels remain
high relative to their historical range, we are finding attractive opportunities
in which to invest money. We believe that the stocks in this portfolio have
compelling growth prospects and are priced attractively relative to the broad
market.
4
<PAGE>
PERFORMANCE
- --------------------------------------------------------------------------------
Value + Growth Fund
Comparison of Change in $10,000 Investment in Jurika & Voyles Value + Growth
Fund with Lipper Growth Fund Index and S&P 500 Index
<TABLE>
<CAPTION>
Date Jurika & Voyles Value + Growth Fund Lipper Growth Fund Index S&P 500 Index
<C> <C> <C> <C>
09/30/94 10,000.00 10,000.00 10,000.00
10/31/94 10,140.00 10,190.52 10,225.00
11/30/94 10,080.00 9,802.58 9,852.81
12/31/94 10,559.00 9,888.09 9,998.63
01/31/95 10,468.84 9,924.12 10,257.60
02/28/95 10,869.56 10,290.97 10,657.64
03/31/95 11,210.17 10,602.78 10,972.04
04/30/95 11,751.15 10,902.97 11,294.62
05/31/95 12,161.88 11,232.84 11,746.41
06/30/95 12,843.11 11,737.26 12,018.92
07/31/95 13,474.25 12,304.95 12,417.95
08/31/95 13,554.39 12,434.65 12,449.00
09/30/95 13,754.75 12,803.95 12,974.34
10/31/95 13,103.58 12,633.87 12,927.64
11/30/95 13,844.91 13,061.50 13,495.16
12/31/95 13,525.34 13,116.74 13,755.62
01/31/96 13,430.68 13,433.72 14,223.31
02/29/96 13,756.72 13,644.59 14,355.58
03/31/96 13,946.03 13,707.77 14,493.40
04/30/96 14,713.80 14,051.40 14,706.45
05/31/96 14,997.77 14,304.19 15,084.41
06/30/96 14,398.28 14,164.35 15,141.73
07/31/96 13,409.65 13,398.06 14,472.46
08/31/96 14,145.86 13,795.98 14,777.83
09/30/96 14,829.49 14,567.98 15,609.82
10/31/96 15,134.50 14,776.94 16,040.65
11/30/96 16,262.75 15,710.85 17,253.33
12/31/96 16,272.06 15,413.91 16,911.71
</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
semi-annual period on December 31, 1996. For purposes of the graph and the
Fund's Annualized Return Since Inception and One Year Total Return, it has been
assumed that all recurring fees (including management fees) were deducted and
all distributions were reinvested.
Total return of the Fund reflects the fact that all fees and expenses, in
excess of certain expense limits specified in the investment management
agreement, have been assumed by Jurika & Voyles, Inc.
Lipper Growth Fund Index is an unmanaged, net asset value weighted index
of 30 mutual funds that invest primarily in companies of all market
capitalization with potential for growth. S&P 500 Index contains 500 industrial,
transportation, utility and financial companies regarded as generally
representative of the U.S. stock market.
Each index reflects the reinvestment of income dividends and capital
gains distributions, if any, but does not reflect fees, brokerage commissions,
or other expenses of investing. All results are historical. Past performance is
no guarantee of future results.
3
<PAGE>
PERFORMANCE
- --------------------------------------------------------------------------------
Balanced Fund
Objective: The Jurika & Voyles Balanced Fund seeks to provide investors with
a balance of long-term capital appreciation and current income. The Fund invests
in a portfolio that combines stocks, bonds and cash-equivalent securities.
Stock investments include quality companies of all market capitalizations
that offer current value and significant future growth potential. Emphasis is on
companies with lower than market average Price to Earnings (P/E) ratios and
higher than market average earnings growth rates and returns on equity (ROE).
The Fund will build concentrated positions in industry sectors where Jurika &
Voyles sees significant long-term investment opportunities. Fixed income
investments emphasize undervalued credits and short-to-medium term maturities.
Review: The Balanced Fund returned 9.19% for the second half of 1996, ahead
of both the Lipper Balanced Index which earned 8.35% and a representative
60%/40% benchmark index of stocks and bonds which earned 8.77%. For the year,
the Fund returned 15.48% as compared to 13.01% and 15.16% for the respective
indices.
During the course of the year the Balanced Fund held significant positions in
technology, financial services, healthcare and specialized industrial names. The
largest contributors to returns during the fourth quarter (and the full year)
were financial institutions (insurance companies, banks and savings and loans),
energy and technology stocks. The last sector has recovered nicely from its
mid-year sell-off. Although we have modestly reduced exposure to financial and
technology stocks in the fund, the remaining companies in this area remain
fundamentally sound and reasonably priced.
During the second half of the year we added several new positions in
industrial stocks, believing that their price weakness in anticipation of an
economic slowdown provides good opportunity. Economic growth is slowing, but we
believe cycles will not experience the extremes that they have in the past. Good
quality domestic companies have become more competitive globally and advanced
information systems are allowing companies to adjust production schedules much
more quickly. Examples of companies we have added in this sector are Case and
Deere & Co., the top domestic producers of agricultural equipment and Fluor, a
premier world-wide engineering and construction company.
Over the past six months, we continued to eliminate or pare back holdings of
technology stocks that have shown substantial appreciation and are no longer
undervalued. We eliminated several holdings of companies that did not live up to
our expectations.
Economic Outlook: As we look forward to 1997, it is with a mixture of
optimism and caution. Our optimism comes from the health of the U.S. economy and
the ability of our own research staff to find attractive new investment
opportunities. Our caution comes from the current high valuation levels and a
naively bullish investor sentiment.
Though we see a healthy economy and modest inflation, we also see slowing
corporate profits and a stock market that is overvalued by most measures.
The market, as measured by the S&P 500 has risen over 1,000% since 1982. This
17.1% compounded annual rate of return has been fueled by a secular decline in
interest rates and a restructuring of corporate America that has increased
profitability.
Declining interest rates and increasing corporate profitability are good news
for stocks. The problem? Everybody knows the good news and it is already more
than reflected in the price. While interest rates appear to be at sustainable
levels, corporate profitability is at the high end of its historic range and
could be due for a reversal.
6
<PAGE>
PERFORMANCE
- --------------------------------------------------------------------------------
Balanced Fund
Overall we expect corporate profits to be up 5.7%, down significantly from
1995 and 1996 levels. Inflation as measured by the Consumer Price Index will be
in the 2.8% to 3.5% range. Though in an environment of slowing growth, market
valuations levels could remain extended for some time, the likelihood of a
correction is higher than normal.
The greatest risks appear to be in the large capitalization, higher
Price/Earnings ratio stocks that dominate the Dow Jones Industrial Average and
the S&P 500. By contrast, the fund is invested in smaller to medium sized
companies which offer much more compelling valuations relative to their growth
potential.
The fixed income portfolio is well diversified among U.S. Treasury and
agency paper, corporate bonds with compelling credit stories and mortgage-backed
securities. This diversification mitigates risk. The portfolio is currently
emphasizing returns from income versus capital appreciation. This emphasis
reflects our view that the bond market will trade in a range for the first of
1997 until the economic and inflation picture becomes clearer.
Comparison of Change in Value of a $10,000 Investment in Jurika & Voyles
Balanced Fund and 60% S&P 500/40% Lehman Bros. Gov't/Corp. Bond Index and Lipper
Balanced Fund Index
<TABLE>
<CAPTION>
Date Jurika & Voyles Balanced Fund Lipper Balanced Fund Index Composite of 60% S&P 500 Stock Index and
40% Lehman Government/Corporate Bond Index
<C> <C> <C> <C>
03/09/92 10,000.00 10,000.00
03/31/92 9,940.00 10,000.00 9,994.00
04/30/92 10,100.16 10,107.69 10,205.47
05/31/92 10,170.23 10,239.28 10,288.75
06/30/92 10,162.22 10,160.14 10,267.65
07/31/92 10,644.19 10,458.40 10,601.35
08/31/92 10,493.93 10,360.92 10,513.36
09/30/92 10,720.09 10,480.31 10,644.35
10/31/92 10,942.16 10,481.30 10,610.72
11/30/92 11,315.65 10,720.51 10,611.05
12/31/92 11,546.61 10,874.08 10,948.78
01/31/93 11,850.67 11,019.50 11,069.36
02/28/93 11,789.90 11,155.59 11,249.94
03/31/93 12,118.07 11,385.86 11,410.36
04/30/93 11,965.91 11,298.82 11,281.19
05/31/93 12,107.91 11,495.85 11,452.67
06/30/93 12,332.68 11,618.71 11,544.52
07/31/93 12,536.42 11,665.61 11,627.90
08/31/93 12,852.57 12,018.13 11,863.36
09/30/93 13,060.30 12,043.95 11,828.48
10/31/93 13,111.44 12,167.79 11,988.16
11/30/93 13,008.17 11,972.88 11,862.96
12/31/93 13,612.35 12,173.77 12,001.20
01/31/94 13,813.78 12,492.68 12,299.31
02/28/94 13,792.99 12,247.47 12,026.51
03/31/94 13,330.46 11,802.42 11,682.53
04/30/94 13,372.21 11,626.72 11,690.22
05/31/94 13,340.89 11,919.72 11,806.53
06/30/94 13,215.63 11,712.79 11,635.42
07/31/94 13,385.58 11,977.33 11,931.42
08/31/94 13,719.48 12,277.02 12,239.73
09/30/94 13,644.18 12,056.59 12,015.50
10/31/94 13,304.07 12,083.10 12,177.22
11/30/94 12,933.00 11,811.15 11,689.36
12/31/94 13,215.67 11,924.68 12,011.58
01/31/95 13,270.63 12,072.89 12,279.44
02/28/95 13,822.40 12,419.28 12,668.45
03/31/95 14,142.31 12,644.48 12,921.56
04/30/95 14,530.63 12,881.61 13,213.07
05/31/95 15,140.69 13,293.63 13,689.60
06/30/95 15,573.18 13,529.46 13,917.05
07/31/95 16,019.40 13,815.50 14,194.84
08/31/95 16,309.45 13,923.30 14,267.80
09/30/95 16,480.13 14,253.83 14,670.15
10/31/95 15,961.25 14,219.69 14,703.60
11/30/95 16,613.97 14,851.62 15,167.94
12/31/95 16,573.75 14,692.38 15,407.29
01/31/96 16,697.31 15,161.21 15,774.60
02/28/96 16,927.14 15,168.62 15,788.80
03/31/96 17,049.65 15,225.63 15,847.53
04/30/96 17,642.47 15,326.62 15,965.12
05/31/96 17,891.46 15,511.81 16,206.19
06/30/96 17,628.65 15,563.05 16,811.85
07/31/96 16,860.44 15,183.08 15,898.84
08/31/96 17,480.92 15,402.66 16,105.21
09/30/96 17,966.57 15,972.56 16,738.79
10/31/96 18,302.84 16,311.17 17,134.49
11/30/96 18,271.50 17,071.27 18,002.18
12/31/96 19,139.60 16,821.30 17,742.23
</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 semi-annual period on December 31, 1996. For purposes of the graph
and the Fund's Annualized Total Return Since Inception and the One Year Total
Return, it has been assumed that all recurring fees (including management fees)
were deducted and all distributions were reinvested.
Total returns of the Fund reflect the fact that all fees and expenses, in
excess of certain expense limits specified in the investment management
agreement, have been assumed by Jurika & Voyles, Inc.
The S&P 500 Index is an unmanaged index containing 500 industrial,
transportation, utility and financial companies regarded as generally
representative of the U.S. stock market.
The Lehman Brothers Government/Corporate Bond Index is an unmanaged
market-weighted index consisting of all public obligations of the U.S.
Government, its agencies and instrumentalities and all corporate issuers of
fixed rate, non-convertible, investment grade U.S. dollar denominated bonds
having maturities of greater than one year. It is generally regarded as
representative of the market for domestic bonds.
Lipper Balanced Fund Index is an unmanaged, net asset value weighted index of
30 largest balanced mutual funds. Lehman Brothers Intermediate
Government/Corporate Bond Index is an unmanaged market-weighted index consisting
of all public obligations of the U.S. Government, its agencies and
instrumentalities and all corporate issuers of fixed rate, non-convertible,
investment grade U.S. dollar denominated bonds having maturities of greater than
one year. It is generally regarded as representative of the market for domestic
bonds.
Each index reflects the reinvestment of income dividends and capital gains
distributions, if any, but does not reflect fees, brokerage commissions, or
other expenses of investing. All results are historical. Past performance is no
guarantee of future results.
7
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1996
(Unaudited)
- --------------------------------------------------------------------------------
Mini-Cap Fund
Description Number of Shares Value
- ----------- ---------------- -----
COMMON STOCKS -- 76.95%
Building Materials -- 0.76%
Elcor Chemicals Corp. .................. 26,400 $ 564,300
NCI Building Systems, Inc. ............. 10,000 345,000
--------------
909,300
--------------
Iron/Steel -- 1.53%
Lukens, Inc............................. 20,000 410,360
*Northwest Pipe Co....................... 52,500 853,125
Steel Dynamics, Inc..................... 30,000 573,750
--------------
1,837,235
--------------
Mining -- 0.74%
Pittston Minerals Group................. 30,000 461,250
Zeigler Coal Holding Co................. 20,000 427,500
--------------
888,750
--------------
TOTAL BASIC INDUSTRIES ................. 3,635,285
--------------
COMMUNICATIONS
Communication Equipment -- 1.89%
Channel Commercial Corp................. 48,300 597,713
Electromagnetic Sciences,
Inc................................... 60,000 1,155,000
Octel Communications
Corp.................................. 30,000 525,000
--------------
2,277,713
--------------
CONSUMER
Homebuilding -- 0.92%
Taco Cabana, Inc........................ 150,000 1,106,250
--------------
CONSUMER CYCLICALS
Automobile Parts -- 2.11%
*Boyd'sWheels, Inc...................... 30,000 420,000
*Dura Automotive Systems,
Inc................................... 20,000 450,000
*Stant Corp............................. 50,000 787,500
Titan Wheel International
Inc................................... 20,000 255,000
*Tower Automotive, Inc.................. 20,000 625,000
--------------
2,537,500
--------------
Homebuilding -- 0.43%
Kaufman & Broad Home
Corp.................................. 40,000 515,000
--------------
Description Number of Shares Value
- ----------- ---------------- -----
Household Furnishing -- 0.61%
*Lifetime Hoan Corp..................... 61,900 $ 727,325
--------------
Manufactured Housing -- 0.96%
*Belmont Homes, Inc..................... 36,250 348,906
Kevco, Inc............................. 57,500 805,000
--------------
1,153,906
--------------
Retail -- 5.77%
*Ann Taylor Stores Corp................. 20,000 350,000
*Cannondale Corp........................ 20,000 450,000
*Carson Pirie Scott & Co.
Ill................................... 40,000 1,010,000
*Central Garden & Pet Co................ 72,000 1,516,500
*Designs, Inc........................... 52,500 295,313
*Gymboree Corp.......................... 20,000 457,500
*New York Bagel Enterprises,
Inc................................... 44,500 272,563
*Rent Way, Inc.......................... 18,000 173,250
*Rockshox, Inc.......................... 41,500 601,750
*Tuesday Morning Corp................... 50,000 1,068,750
Williams Sonoma, Inc................... 20,000 727,500
--------------
6,923,126
--------------
TOTAL CONSUMER
CYCLICALS............................. 11,856,857
--------------
CONSUMER SERVICES
Entertainment -- 0.68%
*Acres Gaming, Inc...................... 30,000 330,000
*Children's Discovery Centers
America............................... 70,000 490,000
--------------
820,000
--------------
Restaurants -- 2.31%
Daka International, Inc................ 70,000 673,750
Darden Restaurants, Inc................ 50,000 437,500
*Dave & Buster's, Inc................... 20,000 402,500
*Rock Bottom Restaurants, Inc........... 35,000 363,125
*Sonic Corp............................. 35,000 892,500
--------------
2,769,375
--------------
TOTAL CONSUMER
SERVICES.............................. 3,589,375
--------------
See notes to financial statements.
5
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1996
(Unaudited)
- --------------------------------------------------------------------------------
Mini-Cap Fund
Description Number of Shares Value
- ----------- ---------------- -----
CONSUMER STAPLES
Cosmetics -- 0.92%
Helen Troy, Ltd......................... 50,200 $ 1,104,400
--------------
Hospitals/Long Term Care -- 0.68%
American HomePatient, Inc............... 30,000 817,500
--------------
Household Products -- 1.16%
Paragon Trade Brands, Inc............... 30,000 900,000
Rival Co................................ 20,000 497,500
--------------
1,397,500
--------------
TOTAL CONSUMER
STAPLES............................... 3,319,400
--------------
ENERGY
Consumer/Commercial Software -- 1.00%
Trico Marine Services, Inc.............. 25,000 1,200,000
--------------
Oil -- Integrated Domestic -- 10.40%
Apache Corp............................. 10,000 353,750
*Barrett Resources Corp.................. 25,000 1,065,625
*Tom Brown, Inc.......................... 15,000 313,125
*Cairn Energy USA, Inc................... 15,000 150,000
Denbury Resources, Inc.................. 50,000 725,000
Devon Energy Corp....................... 20,000 695,000
Ensco International Inc................. 10,000 485,000
Falcon Drilling......................... 20,000 785,000
Forest Oil Corp......................... 40,000 705,000
*Harcor Energy, Inc...................... 100,000 487,500
*Mallon Resources, Inc................... 75,000 675,000
Monterey Resources, Inc................. 60,000 967,500
Patterson Energy, Inc................... 35,000 901,250
Snyder Oil Corp......................... 30,000 521,250
Swift Energy Co......................... 20,000 597,500
Titan Expl Inc.......................... 5,000 60,000
Vintage Pete, Inc....................... 30,000 1,035,000
Willams Clayton Energy,
Inc................................... 45,000 781,875
Wiser Oil Company....................... 60,000 1,185,000
--------------
12,489,375
--------------
Description Number of Shares Value
- ----------- ---------------- -----
Oil & Gas Services -- 8.74%
*Benton Oil & Gas Co..................... 30,000 $ 678,750
Daily Pete Services, Inc................ 35,000 367,500
Diamond Offshore Drilling............... 1,600 91,200
*Dreco Energy Services, Inc.............. 19,000 695,875
*HVIDE Marine, Inc....................... 65,000 1,413,750
*Key Energy Group, Inc................... 30,000 352,500
*Nabors Industries, Inc.................. 30,000 577,500
Newpark Resources, Inc.................. 30,000 1,117,500
Pride Pete Services, Inc................ 65,000 1,511,250
*Simon Transnational Services,
Inc................................... 51,300 795,150
*Tuboscope Vetco
International Corp.................... 52,000 806,000
*Varco International, Inc................ 20,000 462,500
Veritas DGC Inc......................... 50,000 925,000
UTI Energy Corp......................... 20,000 707,500
--------------
10,501,975
--------------
TOTAL ENERGY............................ 24,191,350
--------------
FINANCIAL
Investment Bank/Broker -- 0.90%
Everen Capital Corp..................... 20,000 447,500
Lehman Brothers Holdings, Inc........... 20,000 627,500
--------------
1,075,000
--------------
Miscellaneous Finance -- 1.86%
*Legg Mason, Inc......................... 29,000 1,116,500
Sotheby's Holdings, Inc................. 60,000 1,117,500
--------------
2,234,000
--------------
Personal Finance -- 0.77%
Winthrop Resources Corp................. 32,500 934,375
--------------
Regional Banks -- 2.52%
Beverly Bancorporation, Inc............. 50,000 903,125
Cole Taylor Financial Group,
Inc................................... 20,000 530,000
MAF Bancorp, Inc........................ 35,000 1,216,250
PFF Bancorp, Inc........................ 25,000 371,875
--------------
3,021,250
--------------
TOTAL FINANCIAL......................... 7,264,625
--------------
See notes to financial statements.
6
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1996
(Unaudited)
- --------------------------------------------------------------------------------
Mini-Cap Fund
Description Number of Shares Value
- ----------- ---------------- -----
HEALTHCARE
Drugs -- 0.76%
Dura Pharmaceuticals.................... 10,000 $ 477,500
*Genzyme Corp............................ 20,000 435,000
--------------
912,500
--------------
HMOs -- 0.56%
FPA Medical Management,
Inc................................... 30,000 671,250
--------------
Hospitals/Long Term Care -- 3.02%
Assisted Living Concepts,
Inc................................... 43,000 655,750
Health Source, Inc...................... 70,000 918,750
Living Centers of America, Inc.......... 40,000 1,110,000
*Mid Atlantic Medical Services,
Inc................................... 70,000 936,250
--------------
3,620,750
--------------
Medical Products -- 2.02%
American Oncology....................... 50,000 512,500
*Ballard Medical Products................ 30,000 558,750
*Meridian Diagnostics.................... 30,000 390,000
Meridian Industrial Trust,
Inc................................... 25,000 525,000
*SeaMed Corp............................. 40,000 435,000
--------------
2,421,250
--------------
TOTAL HEALTHCARE........................ 7,625,750
--------------
INDUSTRIAL PRODUCTS
Containers -- 0.26%
*Sealright Co., Inc...................... 30,000 315,000
--------------
Electronics Equipment -- 0.52%
BMC Industries, Inc..................... 20,000 630,000
--------------
Machinery -- 2.36%
Browne & Sharpe
Manufacturing Co...................... 60,000 840,000
*Gardner Denvery Machinery,
Inc................................... 33,000 1,130,250
Gradall Industries, Inc................. 70,000 866,250
--------------
2,836,500
--------------
Description Number of Shares Value
- ----------- ---------------- -----
Manufacturing -- Diversified -- 1.99%
American Precision
Industries............................ 16,900 $ 338,000
Global Industrial
Technologies, Inc..................... 20,000 442,500
Greenfield Industries, Inc.............. 30,000 918,750
Halter Marine Group, Inc................ 50,000 687,500
--------------
2,386,750
--------------
TOTAL INDUSTRIAL
PRODUCTS.............................. 6,168,250
--------------
INDUSTRIAL SERVICES
Construction -- 0.24%
Granite Construction, Inc............... 15,000 285,000
--------------
Distribution -- 0.68%
Daisytek International Corp............. 20,000 820,000
--------------
Special Services -- 1.22%
*Accustaff............................... 30,000 633,750
*RemedyTemp.............................. 15,000 258,750
Warrentech Corp......................... 50,000 575,000
--------------
1,467,500
--------------
TOTAL INDUSTRIAL
SERVICES.............................. 2,572,500
--------------
INSURANCE
Property/Casualty Insurance -- 0.96%
*IPC Holdings Ltd........................ 30,000 671,250
Mercury General Corp.................... 9,200 483,000
--------------
1,154,250
--------------
See notes to financial statements.
7
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1996
(Unaudited)
- --------------------------------------------------------------------------------
Mini-Cap Fund
Description Number of Shares Value
- ----------- ---------------- -----
REAL ESTATE INVESTMENT TRUSTS -- 16.60%
Ambassador Apartments, Inc.............. 10,000 $ 236,250
Apartment Investment &
Management Co......................... 45,000 1,271,250
Arden Realty, Inc....................... 25,000 693,750
Bay Apartment Communities,
Inc................................... 20,000 720,000
Bedford Property
Investments, Inc...................... 30,000 525,000
Bradley Real Estate, Inc................ 40,000 720,000
Burham Pac Properties, Inc.............. 65,000 975,000
CBL & Assoc. Properties,
Inc................................... 20,000 517,500
CV REIT Inc............................. 6,900 94,251
Cali Realty Corp........................ 20,000 617,500
Camden Property Trust................... 30,000 858,750
Carramerica Realty Corp................. 20,000 585,000
Centerpoint Properties Corp............. 20,000 655,000
Equity Inns, Inc........................ 30,000 394,875
Essex Property Trust.................... 30,000 881,250
Excel Realty Trust, Inc................. 20,000 507,500
Glenborough Realty Trust, Inc........... 30,000 528,750
Hagen Alexander Properties, Inc......... 40,000 590,000
Hospitality Properties Trust............ 25,000 725,000
Innkeepers USA Trust.................... 90,000 1,248,750
Irvine Apartment Communities, Inc....... 35,000 875,000
J.P. Realty, Inc........................ 20,000 517,500
Manufactured Home Community............. 22,200 516,150
National Golf Properties, Inc........... 25,000 790,625
Pacific Gulf Properties, Inc............ 20,000 396,137
Post Properties, Inc.................... 20,000 805,000
Public Storage, Inc..................... 20,000 620,000
ROC Communities, Inc.................... 25,000 693,750
Security Cap Pac Trust.................. 20,000 457,500
Spieker Properties, Inc................. 15,000 540,000
Walden Residential Properties, Inc...... 15,000 375,900
--------------
19,932,938
--------------
Description Number of Shares Value
- ----------- ---------------- -----
TECHNOLOGY
Hardware -- 2.14%
Electron International, Inc.............. 20,000 $ 402,500
*Exabyte Corp............................. 75,000 1,003,125
Infocus Systems, Inc..................... 30,000 648,750
*Wallace Computer Services, Inc........... 15,000 517,500
--------------
2,571,875
--------------
Semiconductors -- 2.82%
Burr Brown............................... 20,000 520,000
CP Clare Corp............................ 40,000 400,000
*ESS Technology, Inc...................... 25,000 703,125
Kulicke & Soffa Industries, Inc.......... 20,000 380,000
Sierra Semi Conductor Corp............... 40,000 600,000
Wyle Electronics......................... 20,000 790,000
--------------
3,393,125
--------------
Software -- 4.20%
Activision, Inc.......................... 40,000 515,000
Autodesk, Inc............................ 30,000 840,000
Award Software Intl., Inc................ 80,000 780,000
Broderbund Software, Inc................. 20,000 595,000
Caere Corp............................... 80,000 920,000
*Control Data Systems, Inc................ 25,000 550,000
*Interlink Computer Sciences.............. 50,000 837,500
--------------
5,037,500
--------------
TOTAL TECHNOLOGY......................... 11,002,500
--------------
TRANSPORTATION
Miscellaneous Transportation -- 0.49%
*Airnet Systems, Inc...................... 40,000 590,000
--------------
Railroads -- 1.24%
*Genessee & Wyoming, Inc.................. 21,000 729,750
*Railtex, Inc............................. 30,000 757,500
--------------
1,487,250
--------------
Truckers -- 1.13%
Americo Resources........................ 23,000 805,000
*Wabash National Corp..................... 30,000 551,250
--------------
1,356,250
--------------
TOTAL TRANSPORTATION..................... 3,433,500
--------------
See notes to financial statements.
8
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1996
(Unaudited)
- --------------------------------------------------------------------------------
Mini-Cap Fund
Description Number of Shares Value
- ----------- ---------------- -----
UTILITIES
Utility Service Providers -- 0.45%
Enron Global Power Pipelines LLC........ 20,000 $ 540,000
--------------
TOTAL COMMON STOCKS
(Cost $97,975,004)..................... $ 109,670,543
--------------
Par Value
---------
COMMERCIAL PAPER -- 3.33%
BIL North America, Inc.
5.450%, 01/06/97...................... $2,000,000 $ 1,998,486
Walt Disney Company
5.280%, 01/15/97...................... 2,000,000 1,995,893
--------------
TOTAL COMMERCIAL PAPER
(Cost $3,994,379)....................... $ 3,994,379
--------------
Description Par Value Value
- ----------- ---------------- -----
REPURCHASE AGREEMENT -- 1.34%
State Street Bank & Trust
Co. $1,610,000 at 4.00%
(Agreement dated
December 31, 1996; to be
repurchased at $1,610,179
on 01/02/97; collateralized
by U.S. Treasury Notes
due 02/15/98)
(Value $1,643,906)
(Cost $1,610,000)..................... $1,610,000 $ 1,610,000
--------------
TOTAL INVESTMENTS
(Cost $103,579,383)..................... 115,274,922
--------------
Cash and Other Assets, Net of
Liabilities -- 3.95%.................... 4,734,628
--------------
NET ASSETS -- 100.00%...................... $ 120,009,550
==============
- ----------------
*Indicates non-income producing security
See notes to financial statements.
9
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1996
(Unaudited)
- --------------------------------------------------------------------------------
Value + Growth Fund
Description Number of Shares Value
- ----------- ---------------- -----
COMMON STOCKS -- 78.43%
BASIC INDUSTRIES Building Materials -- 1.18%
*ABT Building Products Corp.............. 10,000 $ 250,000
--------------
Chemicals -- 1.95%
Morton International, Inc............... 6,200 252,650
OM Group, Inc........................... 6,000 162,000
--------------
414,650
--------------
TOTAL BASIC INDUSTRIES.................. 664,650
--------------
COMMUNICATIONS
Communications Equipment -- 4.06%
ECI Telecom, Ltd........................ 32,000 680,000
Octel Communications.................... 10,500 183,750
--------------
TOTAL COMMUNICATIONS.................... 863,750
--------------
CONSUMER CYCLICALS
Automobile Parts -- 0.74%
Stant Corp.............................. 10,000 157,500
--------------
Retail General -- 1.31%
Eaton Corp.............................. 4,000 279,000
--------------
TOTAL CONSUMER CYCLICALS................ 436,500
--------------
CONSUMER SERVICES
Financial Miscellaneous -- 1.44%
Sabre Group Holdings.................... 11,000 306,625
--------------
Publishing -- 2.30%
American Greetings Corp................. 10,900 309,288
McGraw Hill Companies, Inc.............. 3,600 166,050
--------------
475,338
--------------
TOTAL CONSUMER SERVICES................. 781,963
--------------
CONSUMER STAPLES
Food -- 1.02%
Hormel Foods Corp....................... 8,000 216,000
--------------
Household Products -- 0.94%
Rival Co................................ 8,000 199,000
--------------
Tobacco -- 1.02%
Philip Morris Companies, Inc............ 2,000 225,250
--------------
TOTAL CONSUMER STAPLES.................. 640,250
--------------
Description Number of Shares Value
- ----------- ---------------- -----
ENERGY
Consumer/Commercial Software -- 1.78%
System Software Associates, Inc......... 35,700 $ 379,312
--------------
Natural Gas -- 1.40%
K N Energy, Inc......................... 7,600 298,300
--------------
Oil & Gas Services -- 3.00%
Union Tex Pete Holdings, Inc............ 16,500 369,187
Weatherford Enterra, Inc................ 9,000 270,000
--------------
639,187
--------------
TOTAL ENERGY............................ 1,316,799
--------------
FINANCIAL
Banks -- 3.22%
BA Merchant Services, Inc............... 10,000 178,750
Chase Manhattan Corp.................... 3,000 267,750
Citicorp................................ 2,300 236,900
--------------
683,400
--------------
Savings & Loans -- 4.34%
Bank UTD Corp........................... 18,800 502,900
Roosevelt Financial Group, Inc.......... 20,000 420,000
--------------
922,900
--------------
TOTAL FINANCIAL......................... 1,606,300
--------------
HEALTHCARE
HMOs -- 4.05%
Medpartners, Inc........................ 19,680 413,280
Wellpoint Health Networks, Inc.......... 13,000 446,875
--------------
860,155
--------------
Hospitals/Long-Term Care -- 9.89%
American Medical Response............... 9,800 318,500
Apria Healthcare Group, Inc............. 30,000 562,500
Living Centers of America, Inc.......... 20,400 566,100
Mid Atlantic Medical Services, Inc...... 15,000 200,625
Tenet Healthcare Corp................... 20,800 455,000
--------------
2,102,725
--------------
TOTAL HEALTHCARE........................ 2,962,880
--------------
See notes to financial statments.
10
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1996
(Unaudited)
- --------------------------------------------------------------------------------
Value + Growth Fund
Description Number of Shares Value
- ----------- ---------------- -----
INDUSTRIAL PRODUCTS
Machinery -- 2.11%
Case Corp............................... 5,400 $ 294,300
Deere & Co.............................. 3,800 154,375
--------------
448,675
--------------
Manufacturing -- 2.73%
Greenfield Industries, Inc.............. 19,000 581,875
--------------
Office Equipment -- 2.15%
Xerox Corp.............................. 8,700 457,837
--------------
TOTAL INDUSTRIAL PRODUCTS............... 1,488,387
--------------
INSURANCE
Insurance Brokerage -- 1.75%
Everest Reinsurance Holdings............ 12,900 370,875
--------------
Life & Annuity Insurance --2.78%
*AETNA Life & Casualty Co................ 7,400 592,000
--------------
Property/Casualty Insurance -- 1.76%
IPC Holdings Ltd........................ 16,700 373,663
--------------
TOTAL INSURANCE......................... 1,336,538
--------------
REITS
Real Estate Investment Trusts -- 6.09%
Camden Property Trust................... 6,100 174,612
Chateau Properties, Inc................. 6,800 180,200
Meditrust............................... 4,500 180,000
Public Storage, Inc..................... 1,200 37,200
ROC Communities, Inc.................... 6,600 183,150
Security Cap Industrial Trust........... 8,300 177,412
Security Cap Pac Trust.................. 8,100 185,288
Simon V.C. Bartolo Group, Inc........... 5,700 176,700
--------------
1,294,562
--------------
TECHNOLOGY
Hardware -- 3.63%
*EMC Corp................................ 13,000 430,625
*Zebra Technologies Corp................. 14,600 341,275
--------------
771,900
--------------
Description Number of Shares Value
- ----------- ---------------- -----
Semiconductors -- 5.13%
Dallas Semiconductor Corp............... 10,200 $ 234,600
*LSI Logic Corp.......................... 17,700 473,475
*MENC Electronic Materials Inc........... 17,000 382,500
--------------
1,090,575
--------------
Software -- 4.09%
Adobe Systems, Inc...................... 9,800 366,275
AutoDesk, Inc........................... 18,000 504,000
--------------
870,275
--------------
TOTAL TECHNOLOGY........................ 2,732,750
--------------
TRANSPORTATION
Railroads -- 1.11%
Illinois Central Corp................... 7,400 236,800
--------------
UTILITIES
Utility Service Providers -- 1.44%
AES Corp................................ 6,600 306,900
--------------
TOTAL COMMON STOCK
(Cost $14,771,239)....................... $ 16,669,029
--------------
Par Value
---------
U.S. TREASURY OBLIGATIONS -- 9.37%
U.S. Treasury Bills
5.000%, 02/06/97...................... $1,000,000 $ 995,000
4.900%, 01/23/97...................... 1,000,000 997,006
--------------
TOTAL U.S. TREASURY BILL OBLIGATIONS
(Cost $1,992,006)....................... 1,992,006
--------------
REPURCHASE AGREEMENT -- 12.16%
State Street Bank & Trust Co.
$2,584,000 at 4.00%
(Agreement dated
December 31, 1996; to be
repurchased at $2,584,287 on
01/02/97; collateralized by
U.S. Treasury Notes due
02/15/98)(Value $2,640,688)
(Cost $2,173,000)..................... 2,584,000 2,584,000
--------------
See notes to financial statements.
11
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1996
(Unaudited)
- --------------------------------------------------------------------------------
Value + Growth Fund
Description Par Value Value
- ----------- --------- -----
TOTAL INVESTMENTS
(Cost $19,347,245).................... $ 21,245,035
--------------
Cash and Other Assets, Net of Liabilities --
0.04%................................... 7,818
--------------
NET ASSETS -- 100.00%...................... $ 21,252,853
--------------
- ---------------
*Indicates non-income producing security
See notes to financial statements.
12
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1996
(Unaudited)
- --------------------------------------------------------------------------------
Balanced Fund
Description Par Value Value
- ----------- --------- -----
CORPORATE BONDS -- 7.91%
Entertainment -- 1.97%
Viacom International, Inc.
10.250%, 09/15/01...................... $1,000,000 $ 1,090,000
--------------
Finance & Banking --1.00%
Associates Corp., North America
7.950%, 02/15/10....................... 500,000 547,385
--------------
Hotels & Casinos --1.74%
ITT Corp.
6.750%, 11/15/05....................... 1,000,000 963,070
--------------
Industrial -- 1.13%
McDonnell Douglas Financial Corp.
8.400%, 04/11/00....................... 600,000 625,794
--------------
Natural Resources -- 1.92%
Applied International Finance Co., BV
11.750%, 10/10/05...................... 500,000 536,250
Indah Kiat International Finance Co. BV
11.375%, 06/15/99...................... 500,000 525,000
--------------
1,061,250
--------------
Utilities -- 0.15%
Arkansas Power & Light Co.
10.00%, 02/01/20....................... 76,000 81,536
--------------
TOTAL CORPORATE BONDS
(Cost $4,259,971)....................... $ 4,369,035
--------------
Number of
Shares
---------
COMMON STOCKS -- 52.40%
BASIC INDUSTRIES
Aluminum -- 1.49%
Reynolds Metals Co...................... 14,600 823,075
--------------
Chemicals -- 1.54%
OM Group, Inc........................... 12,900 348,300
Morton International, Inc............... 12,300 501,225
--------------
849,525
Description Par Value Value
- ----------- --------- -----
Forest Products -- 1.47%
*Asia Pulp & Paper, Ltd.................. 71,400 $ 812,175
--------------
Iron/Steel -- 0.55%
Quanex Corp............................. 11,100 303,863
--------------
COMMUNICATIONS
Telecommunications Equipment -- 2.61%
ECI Telecom, Ltd........................ 29,900 635,375
Lucent Technologies, Inc................ 9,894 457,598
Octel Communications.................... 20,300 355,250
--------------
1,448,223
--------------
CONSUMER CYCLICALS
Automobile Parts -- 0.63%
Stant Corp.............................. 22,100 348,075
--------------
Retail -- 1.18%
Circuit City Stores, Inc................ 10,100 304,263
Dayton Hudson Corp...................... 8,800 345,400
--------------
649,663
--------------
TOTAL CONSUMER CYCLICALS................. 997,738
--------------
CONSUMER SERVICES
Leisure -- 0.55%
Brunswick Corp.......................... 12,700 304,800
Publishing -- 1.94%
American Greetings Corp................. 19,000 539,125
McGraw Hill Companies, Inc.............. 11,500 530,438
--------------
1,069,563
--------------
TOTAL CONSUMER SERVICES................. 1,374,363
--------------
CONSUMER STAPLES
Food -- 1.21%
American Stores Co...................... 7,000 286,125
Hannaford Brothers Co................... 11,300 384,200
--------------
670,325
--------------
ENERGY
Integrated Oil -- 1.43%
Ultramar Diamond Shamrock............... 15,900 502,837
Vastar Resources Inc.................... 7,600 288,800
--------------
791,637
--------------
See notes to financial statements.
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1996
(Unaudited)
- --------------------------------------------------------------------------------
Balanced Fund
Description Par Value Value
- ----------- --------- -----
Natural Gas -- 0.75%
K.N. Energy, Inc........................... 10,500 $ 412,125
--------------
Oil and Gas Services -- 2.22%
Union Tex Petroleum
Holdings, Inc........................... 23,800 532,525
Weatherford Enterra, Inc................ 23,150 694,500
--------------
1,227,025
--------------
TOTAL ENERGY ............................ 2,430,787
--------------
FINANCIAL
Banks -- 6.17%
Bank UTD Corp............................ 20,000 535,000
Chase Manhattan Corp..................... 8,800 785,400
Citicorp................................. 7,600 782,800
Roosevelt Financial Group, Inc........... 28,100 590,100
Washington Mutual Inc.................... 16,600 718,988
--------------
3,412,288
--------------
Financial -- Miscellaneous -- 0.53%
*Associates First Capital Corp............ 6,600 291,225
--------------
TOTAL FINANCIAL.......................... 3,703,513
--------------
HEALTHCARE
HMOs -- 1.78%
*Foundation Health Corp................... 10,600 336,550
*Medpartners, Inc......................... 30,800 646,800
--------------
983,350
--------------
Hospitals/Long-Term Care -- 3.22%
American Medical Response ............... 18,500 601,250
*Apria Healthcare Group Inc............... 12,200 228,750
*Living Centers of America, Inc........... 10,300 285,825
*Tenet Healthcare Corp.................... 30,300 662,813
--------------
1,778,638
--------------
TOTAL HEALTHCARE ........................ 2,761,988
INDUSTRIAL PRODUCTS
Aerospace/Defense -- 1.43%
Lockheed Martin Corp..................... 5,200 475,800
Northrop Grumman Corp.................... 3,800 314,450
--------------
790,250
--------------
Description Par Value Value
- ----------- --------- -----
Machinery -- 1.58%
Case Corp................................ 10,300 $ 561,350
Deere & Co............................... 7,700 312,813
--------------
874,163
--------------
Manufacturing -- Diversified -- 1.66%
Eaton.................................... 7,900 551,025
Parker Hannifin Corp..................... 9,400 364,250
--------------
915,275
--------------
Office Equipment -- 1.64%
Xerox Corp............................... 17,200 905,150
--------------
TOTAL INDUSTRIAL PRODUCTS................ 3,484,838
--------------
INDUSTRIAL SERVICES
Construction -- 0.58%
Fluor.................................... 5,100 320,025
--------------
Pollution Control -- 1.10%
Wheelabrator Technologies, Inc........... 37,300 606,125
--------------
INSURANCE
Life & Annuity Insurance --3.78%
AETNA Life & Casualty Co................. 14,700 1,176,000
Protective Life Corp..................... 12,600 502,425
Reliastar Financial Corp................. 7,200 415,800
--------------
2,094,225
--------------
Property/Casualty Insurance -- 2.05%
Everest Reinsurance Holdings ............ 18,300 526,125
IPC Holdings, Ltd........................ 14,300 319,962
Vesta Insurance Group, Inc............... 9,050 283,943
--------------
1,130,030
--------------
TOTAL INSURANCE.......................... 3,224,255
--------------
REAL ESTATE INVESTMENT TRUSTS -- 1.02%
J.P. Realty, Inc......................... 12,700 328,612
Security Cap Industrial Trust............ 10,900 232,987
--------------
561,599
--------------
TECHNOLOGY
Hardware -- 1.22%
*EMC Corp................................. 20,400 675,750
--------------
See notes to financial statements.
14
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1996
(Unaudited)
- -------------------------------------------------------------------------------
Balanced Fund
Description Par Value Value
- ----------- --------- -----
Semiconductors -- 1.35%
Dallas Semiconductor Corp................ 8,300 $ 190,900
*LSI Logic Corp........................... 14,200 379,850
*MENC Electronic Materials, Inc........... 7,700 173,250
--------------
744,000
Software -- 2.90%
Adobe Systems, Inc....................... 17,500 654,063
AutoDesk, Inc............................ 19,900 557,200
*System Software Associates, Inc.......... 36,600 388,875
--------------
1,600,138
--------------
TOTAL TECHNOLOGY ........................ 3,019,888
TRANSPORTATION
Railroad -- 1.13%
Illinois Central Corp.................... 19,500 624,000
--------------
UTILITIES
Utility Service Providers -- 1.69%
*AES Corp................................. 20,100 934,650
--------------
TOTAL COMMON STOCKS
(Cost $23,660,737)....................... $28,950,955
--------------
Par Value
---------
AGENCY OBLIGATIONS -- 1.70%
Federal Home Loan Bank -- 0.54%
6.160%, 04/21/97......................... $300,000 300,150
--------------
Federal National Mortgage Association, STRIP -- 1.16%
0.010%, 03/09/02 ........................ 650,000 643,299
--------------
TOTAL AGENCY OBLIGATIONS
(Cost $946,439).......................... $ 943,449
--------------
Description Par Value Value
- ----------- --------- -----
ASSET BACKED AND INTEREST ONLY
SECURITIES -- 10.33%
COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.96%
G.E. Capital Mortgage Services, Inc.
3.466%, 10/25/08......................... $ 3,417,089 $ 211,002
Residential Fdg Mtg Secs I Mtg.
1.662%, 11/25/23......................... 35,253,913 319,696
--------------
(Cost $490,298)........................... 530,698
--------------
Federal Home Loan Mortgage Corporation --4.20%
10.065%, 12/15/21 ....................... 1,440,000 480,817
1.050%, 04/15/08 ........................ 9,623,306 190,137
3.211%, 05/15/08 ........................ 5,041,145 232,140
6.500%, 09/15/08 ........................ 1,315,278 170,789
6.000%, 04/15/06 ........................ 3,014,771 269,469
5.000%, 07/01/01 ........................ 1,013,230 974,917
--------------
(Cost $2,210,812)........................ 2,318,269
--------------
Federal National Mortgage Association --5.17%
8.267%, 09/25/08 ........................ 450,000 369,000
3.516%, 07/25/22 ........................ 5,482,065 312,976
7.000%, 06/25/20 ........................ 3,215,008 425,765
10.250%, 01/25/22 ....................... 148,788 140,209
3.593%, 04/25/23 ........................ 6,526,568 590,720
8.250%, 10/17/23 ........................ 593,416 596,939
4.193%, 09/25/15 ........................ 9,981,132 425,634
--------------
(Cost $2,763,594)........................ 2,861,244
--------------
TOTAL ASSET BACKED AND INTEREST
ONLY SECURITIES (Cost $5,465,769) ......... $ 5,710,211
--------------
See notes to financial statements.
15
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1996
(Unaudited)
- -------------------------------------------------------------------------------
Balanced Fund
Description Par Value Value
- ----------- --------- -----
U.S. TREASURY OBLIGATIONS -- 17.87%
U.S. Treasury Bills -- 3.42%
5.000%, 01/16/97 ........................ $1,000,000 $ 997,916
4.716%, 03/27/97 ........................ 900,000 889,438
--------------
1,887,354
--------------
U.S. Treasury Bonds -- 4.96%
7.500%, 11/15/16......................... 1,600,000 1,733,728
6.250%, 08/31/00 ........................ 1,000,000 1,003,750
--------------
2,737,478
--------------
U.S. Treasury Notes -- 5.68%
8.000%, 05/15/01......................... 2,000,000 2,137,180
--------------
U.S. Treasury STRIP -- 3.80%
0.010%, 11/15/09......................... 4,915,000 2,101,064
--------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $8,838,697)......................... $ 8,863,076
--------------
COMMERCIAL PAPER -- 9.03%
BIL North America
5.450%, 01/06/97
(Cost $2,991,068) ....................... 3,000,000 2,991,068
--------------
Fingerhut Owner Trust
5.500%, 01/07/97
(Cost $1,998,167) ....................... 2,000,000 1,998,168
--------------
TOTAL COMMERCIAL PAPER
(Cost $4,989,235)......................... $ 4,989,236
--------------
Description Par Value Value
- ----------- --------- -----
REPURCHASE AGREEMENT -- 5.04%
State Street Bank & Trust Co.
$2,785,000 at 4.00%
(Agreement dated
December 31, 1996; to be
repurchased at $2,785,309 on
01/02/97; collateralized by
U.S. Treasury Notes
due 02/15/98)
(Value $2,844,219)
(Cost $2,275,000) ....................... $ 2,785,000 $ 2,785,000
---------------
TOTAL INVESTMENTS
(Cost $50,945,849)......................... $ 56,610,962
---------------
Liabilities in Excess of Cash and Other
Assets --(4.28%) ......................... (2,365,745)
---------------
NET ASSETS -- 100.00%...................... $ 54,245,217
===============
- ---------------------------
*Indicates non-income producing security.
See notes to financial statements.
16
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1996
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Mini-Cap Value + Balanced
Fund Growth Fund Fund
------------ ----------- -----------
<S> <C> <C> <C>
ASSETS
Investments in securities at market value (cost of $103,579,383,
$19,347,245, $50,945,849).......................................... $115,274,922 $21,245,035 $56,619,353
Cash .............................................................. 74,633 514 766
Receivables
Investment securities sold........................................ 8,573,758 -- --
Income receivable................................................. 160,197 17,807 183,585
Fund shares sold.................................................. 1,658,899 10,697 34,957
Deferred organization costs......................................... 25,601 25,601 7,320
Prepaid expenses.................................................... 4,633 5,218 193
------------ ----------- -----------
Total assets ................................................... 125,772,643 21,304,872 56,846,174
------------ ----------- -----------
LIABILITIES
Payables
Investment securities purchased .................................. 5,723,836 -- 2,532,129
Fund shares repurchased........................................... 36,813 17,474 14,000
Dividends......................................................... -- 4,635 9,704
Other accrued expenses............................................ 2,444 29,910 36,733
------------ ----------- -----------
Total liabilities............................................... 5,763,093 52,019 2,592,566
------------ ----------- -----------
NET ASSETS ......................................................... $120,009,550 $21,252,853 $54,253,608
============ =========== ===========
COMPOSITION OF NET ASSETS
Paid-in capital................................................... $103,956,760 $18,812,917 $47,242,250
Accumulated undistributed net investment income (loss) ........... 44,876 (118,865) (13,893)
Accumulated undistributed net realized gain on investments........ 4,312,375 661,010 1,350,981
Net unrealized appreciation on investments........................ 11,695,539 1,897,791 5,674,270
------------ ----------- -----------
NET ASSETS ......................................................... $120,009,550 $21,252,853 $54,253,608
============ =========== ===========
Number of shares, $0.01 par value, issued and outstanding
(unlimited shares authorized)...................................... 6,156,625 1,530,146 3,763,917
============ =========== ===========
NET ASSET VALUE PER SHARE .......................................... $ 19.49 $ 13.89 $ 14.41
============ =========== ===========
</TABLE>
See notes to financial statements.
17
<PAGE>
STATEMENTS OF OPERATIONS
Six Months Ended December 31, 1996
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Mini-Cap Value + Balanced
Fund Growth Fund Fund
------------ ----------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME
Income
Dividend income .................................................. $ 497,034 $ 97,373 $ 205,494
Interest income .................................................. 410,973 51,353 715,673
------------ ----------- -----------
Total income ................................................... 908,007 148,726 921,167
------------ ----------- -----------
Expenses
Investment advisory fees ......................................... 498,668 78,063 209,099
Custodian fees ................................................... 31,765 27,697 20,493
Transfer agent fees............................................... 30,039 19,532 22,503
Legal fees ....................................................... 6,804 1,465 3,659
Administration fees .............................................. 24,380 24,380 23,435
Audit fees ....................................................... 5,163 4,282 5,091
Miscellaneous fees ............................................... 25,172 6,443 6,606
Reports to shareholders .......................................... 6,442 3,643 2,032
Registration fees ................................................ 9,947 5,506 5,018
Trustees fees .................................................... 3,752 3,441 3,599
Amortization of deferred organization costs ...................... 4,709 4,709 1,275
------------ ----------- -----------
Total expenses ................................................. 646,841 179,161 302,810
Less: expenses recouped (reimbursed) ........................... 101,160 (60,552) 12,700
------------ ----------- -----------
Net expenses ................................................... 748,001 118,609 315,510
------------ ----------- -----------
Net investment income............................................... $ 160,006 $ 30,117 $ 605,657
------------ ----------- -----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments.................................... $ 4,277,554 $ 1,724,033 $ 2,488,435
Change in net unrealized appreciation on investments ............... 5,019,052 221,627 1,291,193
------------ ----------- -----------
Net realized and unrealized gain on investments..................... 9,296,606 1,945,660 3,779,628
------------ ----------- -----------
Net increase in net assets resulting from operations ............... $ 9,456,612 $ 1,975,777 $ 4,385,285
============ =========== ===========
</TABLE>
See notes to financial statements.
18
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Mini-Cap Fund
-------------------------
For the periods
-------------------------
07/01/96 07/01/95
to to
12/31/96+ 06/30/96
------------ -----------
<S> <C> <C>
INCREASE (DECREASE)IN NET ASSETS
Operations:
Net investment income (loss) ........................................... $ 160,006 $ (115,130)
Net realized gain on investments sold .................................. 4,277,554 4,268,271
Change in net unrealized appreciation on investments ................... 5,019,052 5,353,486
------------- -------------
Net increase in net assets from operations ............................. 9,456,612 9,506,627
------------- -------------
Distributions to shareholders:
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 .............................................. 48,964,828 80,695,971
Net asset value of shares issued on reinvestment of
distributions ....................................................... 3,003,878 1,244,984
Cost of shares redeemed ................................................ (30,922,411) (7,843,000)
------------- -------------
Net increase from Fund share transactions .............................. 21,046,295 74,097,955
------------- -------------
Net increase in net assets ............................................... 27,312,224 82,300,520
NET ASSETS
Beginning of period ...................................................... 92,697,327 10,396,807
------------- -------------
End of period ............................................................ $ 120,009,551 $ 92,697,327
============= =============
CHANGE IN SHARES
Shares sold .............................................................. 2,639,063 4,666,779
Shares issued on reinvestment of distributions ........................... 161,586 81,769
Shares redeemed .......................................................... (1,685,469) (443,276)
------------- -------------
Net increase ............................................................. 1,115,180 4,305,272
============= =============
</TABLE>
- -----------
+ Unaudited.
* See Financial Highlights for per share amounts.
See notes to financial statements.
19
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Mini-Cap Fund
-----------------------------
For the periods
-----------------------------
07/01/96 07/01/95
to to
12/31/96+ 06/30/96
------------ -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income ............................................ $ 30,117 $ 133,782
Net realized gain on investments sold ............................ 1,724,033 1,086,169
Change in net unrealized appreciation on investments ............. 221,627 753,390
------------ ------------
Net increase in net assets from operations ....................... 1,975,777 1,973,341
------------ ------------
Distributions to shareholders:
From net investment income* ...................................... (148,982) (162,305)
From net realized gains* ......................................... (1,665,662) (608,062)
------------ ------------
Total distributions .............................................. (1,814,644) (770,367)
------------ ------------
Fund share transactions:
Proceeds from shares sold ........................................ 6,820,982 9,377,707
Net asset value of shares issued on reinvestment of
distributions ................................................. 755,296 1,766,339
Cost of shares redeemed .......................................... (8,751,300) (3,068,816)
------------ ------------
Net increase from Fund share transactions ........................ (163,979) 7,064,187
------------ ------------
Net increase (decrease) in net assets .............................. (2,846) 8,267,161
NET ASSETS
Beginning of period ................................................ 21,255,699 12,988,538
------------ ------------
End of period ...................................................... $ 21,252,853 $ 21,255,699
============ ============
CHANGE IN SHARES
Shares sold ........................................................ 496,463 708,374
Shares issued on reinvestment of distributions ..................... 128,813 58,676
Shares redeemed .................................................... (647,409) (228,057)
------------ ------------
Net increase ....................................................... (22,133) 538,993
============ ============
</TABLE>
- -----------
+ Unaudited.
* See Financial Highlights for per share amounts.
20
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Balanced Fund
--------------------------
For the periods
--------------------------
07/01/96 07/01/95
to 12/31/96+ to 06/30/96
------------ -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income ...................................................... $ 605,657 $ 1,346,411
Net realized gain on investments sold ...................................... 2,488,435 4,394,771
Change in net unrealized appreciation (depreciation) on investments ....... 1,291,193 (440,439)
------------ ------------
Net increase in net assets from operations ................................. 4,385,285 5,300,743
------------ ------------
Distributions to shareholders:
From net investment income* ................................................ (616,910) (1,353,974)
From net realized gains* ................................................... (4,582,193) (1,629,511)
------------ ------------
Total distributions ........................................................ (5,199,103) (2,983,485)
------------ ------------
Fund share transactions:
Proceeds from shares sold .................................................. 6,870,503 13,585,582
Net asset value of shares issued on reinvestment of distributions .......... 5,044,239 2,870,134
Cost of shares redeemed .................................................... (3,826,692) (10,629,958)
------------ ------------
Net increase from Fund share transactions .................................. 8,088,050 5,825,758
------------ ------------
Net increase in net assets .................................................... 7,274,232 8,143,016
NET ASSETS
Beginning of period ........................................................... 46,979,376 38,836,360
------------ ------------
End of period ................................................................. $ 54,253,608 $ 46,979,376
============ ============
CHANGE IN SHARES
Shares sold ................................................................... 473,648 944,421
Shares issued on reinvestment of distributions ................................ 350,537 201,472
Shares redeemed ............................................................... (259,256) (728,972)
------------ ------------
Net increase .................................................................. 564,929 416,921
============ ============
</TABLE>
- -----------
+ Unaudited.
* See Financial Highlights for per share amounts.
See notes to financial statements.
21
<PAGE>
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period.
<TABLE>
<CAPTION>
Mini-Cap Fund Value + Growth Fund
---------------------------------------- ----------------------------------------
For the periods For the periods
---------------------------------------- ----------------------------------------
07/01/96++ 07/01/95 09/30/94+ 07/01/96++ 07/01/95 09/30/94+
to 12/31/96 to 06/30/96 to 06/30/95 to 12/31/96 to 06/30/96 to 06/30/95
------------ ----------- ----------- ------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period ................................... $ 18.39 $ 14.12 $ 10.00 $ 13.69 $ 12.82 $ 10.00
----------- --------- --------- ---------- ---------- -----------
Income from investment
operations
Net investment income ................. 0.03 (0.02) 0.01 0.09 0.11 0.05
Net realized and unrealized
gain on investments ................... 1.66 5.25 4.13 1.66 1.40 2.79
----------- --------- --------- ---------- ---------- -----------
Total from investment
operations .......................... 1.69 5.23 4.14 1.75 1.51 2.84
----------- --------- --------- ---------- ---------- -----------
Less distributions
From net investment income ............. -- -- (0.02) (0.10) (0.13) (0.02)
From net realized gains ................ (0.59) (0.96) -- (1.45) (0.51) --
----------- --------- --------- ---------- ---------- -----------
Total distributions ................. (0.59) (0.96) (0.02) (1.55) (0.64) (0.02)
----------- --------- --------- ---------- ---------- -----------
Net asset value, end of period .............. $ 19.49 $ 18.39 $ 14.12 $ 13.89 $ 13.69 $ 12.82
=========== ========= ========= ========== ========== ===========
Total return ................................ 9.32%** 38.46% 41.47%** 13.01%** 12.11% 28.43%**
=========== ========= ========= ========== ========== ===========
Net assets at end of period
(in 000's) ............................... $ 120,010 $ 92,697 $ 10,397 $ 21,253 $ 21,256 $ 12,989
=========== ========= ========= ========== ========== ===========
Ratio of expenses to average
net assets (net of expense
reimbursements)(1)........................ 1.50%* 1.50% 1.50%* 1.29%* 1.35% 1.35%*
=========== ========= ========= ========== ========== ===========
Ratio of net investment income
(loss) to average net assets ............. 0.32%* (0.35)% 0.04%* 0.33%* 0.78% 1.18%*
=========== ========= ========= ========== ========== ===========
Portfolio turnover rate ..................... 128.82% 214.71% 102.85% 93.62% 101.05% 31.64%
=========== ========= ========= ========== ========== ===========
</TABLE>
- -----------
* Annualized
** Not annualized
+ Fund commenced operations on September 30, 1994.
++ Unaudited
(1) The ratios of expenses to average net assets before expense reimbursements
and recoupments were 1.30%, 1.74% and 4.99% for the Mini-Cap Fund for the
periods ended December 31, 1996, June 30, 1996 and June 30, 1995,
respectively. The ratios of expenses to average net assets before expense
reimbursements were 1.95%, 2.12% and 5.21% for the Value + Growth Fund for
periods ended December 31, 1996, June 30, 1996 and June 30, 1995,
respectively.
See notes to financial statements.
22
<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 11/01/92 03/09/92
to 12/31/96 to 06/30/96 to 06/30/95 to 09/30/94 to 10/31/93 to 10/31/92(1)
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period ................................. $ 14.69 $ 13.96 $ 12.41 $ 12.82 $ 10.84 $ 10.00
--------- --------- ---------- --------- ---------- ---------
Income from investment
operations
Net investment income .................. 0.17 0.43 0.24 0.16 0.16 0.11
Net realized and unrealized
gain on investments .................. 1.14 1.27 1.59 0.05 1.98 0.83
--------- --------- ---------- --------- ---------- ---------
Total from investment
operations ........................ 1.31 1.70 1.83 0.21 2.14 0.94
--------- --------- ---------- --------- ---------- ---------
Less distributions
From net investment income .............. (0.18) (0.43) (0.24) (0.18) (0.16) (0.10)
From net realized gains ................. (1.41) (0.54) (0.04) (0.44) -- --
--------- --------- ---------- --------- ---------- ---------
Total distributions ................... (1.59) (0.97) (0.28) (0.62) (0.16) (0.10)
--------- --------- ---------- --------- ---------- ---------
Net asset value, end of period ............ $ 14.41 $ 14.69 $ 13.96 $ 12.41 $ 12.82 $ 10.84
========= ========= ========= ========= ========== =========
Total return ........................... 9.19%(3) 12.56% 14.98%(3) 3.66%(3) 19.83% 14.67%(3)
========= ========= ========= ========= ========== =========
Net assets at end of period
(in 000's) ............................ $ 54,254 $ 46,979 $ 38,836 $ 34,659 $ 20,931 $ 6,008
========= ========= ========= ========= ========== =========
Ratio of expenses to average net
assets (net of expense
reimbursements)(4) .................... 1.28%*(2) 1.35% 1.33%* 1.63%* 1.47% 1.50%*
========= ========= ========= ========= ========== =========
Ratio of net investment income to
average net assets ..................... 2.46%* 2.98% 2.51%* 1.77%* 1.51% 1.93%*
========= ========= ========= ========= ========== =========
Portfolio turnover rate ............... 31.66% 69.11% 56.00% 60.90% 44.12% 20.00%
========= ========= ========= ========= ========== =========
</TABLE>
- -----------
* Annualized
(1) The Jurika & Voyles Balanced Fund commenced operations on March 9, 1992.
(2) Includes recoupment of management fees previously waived.
(3) Not annualized for periods less than one year.
(4) The ratio of expenses to average net assets before expense reimbursements
and recoupments were 1.23%, 1.49% and 1.42% for the Balanced Fund for the
periods ended December 31, 1996, June 30, 1996 and June 30, 1995,
respectively.
+ Unaudited
See notes to financial statements.
23
<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.
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.
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 of the date of financial statements and the amounts of income and
expense during the reporting period. Actual results could differ from those
estimates.
24
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Continued
- --------------------------------------------------------------------------------
3. 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 Jurikas & 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 herin 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. In subsequent years, overall operating expenses of each Fund will not fall
below the applicable expense limitations until the Adviser has been fully
reimbursed for fees foregone or expenses paid by the Adviser under this
agreement, as each Fund will reimburse the Adviser in subsequent years when
operating expenses (before reimbursement) are less than the applicable
percentage limitation. The agreement permits such reimbursement to the Adviser
within a three year period following the year in which the Adviser waived fees
or reimbursed expenses of the Fund. Fee waivers and expense reimbursements are
voluntary and may be terminated at any time. Unreimbursed expenses at December
31, 1996 amounted to $80,274, $294,527, and $71,639, for the Mini-Cap, Value +
Growth and Balanced Funds, respectively.
The Trust, on behalf of the Funds, entered into an Administration
Agreement with Investment Company Administration Corporation (the
"Administrator"). Under the terms of the Agreement, the Trust will pay an annual
fee, payable monthly and computed based on the value of the total average net
assets of the Trust at an annual rate of 0.10% of the first $100 million of such
net assets, 0.05% of next $150 million, 0.03% of next 250 million and 0.01%
thereafter, subject to a minimum fee of $50,000 per annum per Fund 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.
4. Purchases and Sales of Securities
The cost of security purchases and the proceeds from security sales,
other than short-term investments for the period ended December 31, 1996, are as
follows:
Funds Purchases Sales
- ----- ------------ ------------
Mini-Cap Fund .................................... $145,409,793 $110,519,085
Value + Growth Fund .............................. 14,925,975 17,463,855
Balanced Fund .................................... 18,763,171 14,297,960
At December 31, 1996, the net realized gains or losses on securities sold
for federal income tax purposes was not materially different from amounts
reported for financial reporting purposes. The total costs of securities and the
aggregate gross unrealized appreciation and depreciation for securities held by
the Funds at December 31, 1996, based on cost for federal income tax purposes,
are as follows:
Gross Gross Net
Unrealized Unrealized Unrealized
Funds Total Tax Cost Appreciation Depreciation Appreciation
- ----- -------------- ------------ ------------ ------------
Mini-Cap Fund ......... $105,987,385 $ 13,099,075 ($1,403,536) $ 11,695,539
Value + Growth Fund ... 19,347,245 2,125,044 (227,253) 1,897,791
Balanced Fund ......... 50,945,849 6,284,121 (609,851) 5,674,270
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