JURIKA & VOYLES FUND GROUP, N-30D, 1998-03-04

JURIKA & VOYLES FUND GROUP
N-30D, 1998-03-04

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Jurika & Voyles

Semi-Annual Report

Jurika & Voyles Fund Group
Mini-Cap Fund
Value+Growth Fund
Balanced Fund

December 31, 1997
<PAGE>
Table of Contents

Letter to Shareholders .................................................... 1

Performance

Mini-Cap Fund .......................................................... 2

Value+Growth Fund ...................................................... 6

Balanced Fund .......................................................... 9

Schedules of Investments .................................................. 12

Statements of Assets and Liabilities ...................................... 30

Statements of Operations .................................................. 31

Statements of Changes in Net Assets ....................................... 32

Financial Highlights ...................................................... 35

Notes to Financial Statements ............................................. 39

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, LLP 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.
<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 period from July 1 to December 31, 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,

/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
- --------------------------------------------------------------------------------
Mini-Cap Fund

Objective: The Jurika & Voyles Mini-Cap Fund seeks to maximize 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 growth potential. Emphasis is on companies with market
capitalizations within the Russell 2000 universe, lower than average
price-to-earnings (P/E) ratios and higher than average earnings growth rates and
returns on equity. The Fund will build concentrated positions in sectors and
industries where we see significant long-term investment opportunities.

It is important to review our investment objectives in detail. First, we search
for stocks with market capitalizations within the Russell 2000. The index's
current range is up to $3.4 billion. Our weighted average market capitalization,
however, should remain comfortably below $1 billion. It is likely to remain near
$500 million compared to the Russell's weighted average capitalization of $820
million at the end of 1997. Second, we ask our eleven-member research team to
discover and to recommend the best companies in their sectors that not only meet
our market capitalization criterion, but that also have forward twelve-month PEs
that are no greater than that of the Russell. Third, we seek strong balance
sheets. Therefore, we discard companies that have long-term debt/total
capitalizations in excess of 50%, unless they generate so much cash that debt
service is covered many times over. Fourth, we encourage our analysts to be
relatively long-term investors, and, therefore, we use two-year price targets.
We are unlikely to invest in any companies that have less than a 30% total
return potential over that period. Fifty percent total return expectations are
often demanded for more volatile companies in sectors such as technology or
retail. Fifth, we wish to hold 60-90 positions, each being at least 1% of all
equities.

Semi-Annual Review: The Mini-Cap Fund returned 10.64% during the second half of
1997 versus 11.03% for the Russell 2000 Index and 8.50% for the Lipper Small
Capitalization Fund Index. The second half of 1997 proved extremely volatile for
small capitalization stocks, illustrated by the performance of the Russell
Index, which increased 14.9% in the third quarter, but declined 3.4% in the
fourth period. During the third quarter, the Fund's performance benefited from
overweightings in the energy, consumer discretionary and producer durable
sectors, yet these same bets proved to be detrimental to the Fund's performance
during the fourth period. In addition to the
2
<PAGE>
PERFORMANCE
- --------------------------------------------------------------------------------
Mini-Cap Fund

market's volatility, the Fund changed its manager during the last half of 1997.
On October 1, 1997, the management of the Fund transitioned from Irene Hoover,
CFA, to an eleven-member team of analysts led by Paul Meeks, CFA and Guy
Elliffe, CFA. Please note that only the Fund's manager has changed, our
investment philosophy has not.

Some of the best performing stocks during the last half of 1997 included:
Carbide/Graphite, which manufactures graphite electrodes that are used to
conduct electricity; Carson Pirie Scott, a department store that was acquired by
Proffitt's; General Cable, a manufacturer of copper wire and cable products for
the communications and electrical markets; Hvide Marine, which provides marine
support to the energy and chemical industries; and Steiner Leisure, which
manages spas aboard cruise ships.

Fourth Quarter Review: The fourth quarter's results were due to several factors.
First, the poor relative performance of inherited overweightings in the energy
and producer durable sectors. In the fourth quarter, we reduced the Fund's
exposure in these areas, sectors that we felt, and which proved to be,
vulnerable to a downturn. Second the strong relative performance of the
financial sector, a portion of the market in which we were underweighted upon
the transition of the Fund. We were fortunate to increase the exposure in
financials before other investors recognized its merits and drove its stocks
significantly higher. Third, the underweight in utilities, a sector which
features slow growth but nevertheless outperformed the index by more than 14
percentage points in the quarter as investors fled to capture its high dividend
yield. Despite utilities' strong relative outperformance in the fourth quarter,
you can expect the Fund to continue to be underweighted in this sector. These
companies rarely have a catalyst for growth, and they may underperform
significantly, as they did throughout most of 1997, when investors are focused
less on safety.

Although the bet had only a minor impact on the Fund's quarterly performance
compared to the overweights or underweights mentioned above, it is important to
know that we increased (to an essentially equal weight in the Russell 2000
Index) the portfolio's exposure to the technology sector. This is clearly the
economy's fastest-growing area, and we were able to buy several strong companies
at what we believe are bargain basement prices resulting from an overreaction by
investors to the "Asia flu". Most of our technology investments will not be as
3
<PAGE>
PERFORMANCE
- --------------------------------------------------------------------------------
Mini-Cap Fund

impacted by that region's crisis as much as the financial press has led you to
believe. Although several of our other technology holdings do sell into the
previously more-vibrant Asian markets, most of them manufacture there as well,
so the negative impact of foreign currency devaluation is muted. Also, please
note that the bulk of our companies' shipments to Asia are exported elsewhere,
so, again, the low cost of labor may ultimately be an advantage. Some of our
recent technology additions to the Fund are Peak International, a semiconductor
packaging company; Dataworks, an enterprise resource planning software firm
whose stock has appreciated over 50% since we purchased it a few weeks ago; and
Symantec, with its leading Norton Utilities and Norton Anti-Virus brands, the
number two retail software company behind Microsoft.

Outlook for Small-Capitalization Stocks: Our outlook for 1998 is bright. After
several years of underperforming their larger-capitalization brethren, it is
likely that small-capitalization stocks will outperform this year. Any
reasonable forecast is for the earnings of smaller companies to grow at a rate
significantly faster than that of the blue chips. A central reason for this is
that the typical small-capitalization firm is far less dependent on the troubled
Asian region than the average large-capitalization organization. We will
continue to carefully monitor the geographic exposures of the domestic companies
owned in the Fund. It is also interesting to note that, despite this expected
earnings growth superiority, the Russell 2000, a benchmark for smaller
companies, is trading near an all-time low relative P/E versus the S&P 500, an
index of large stocks. The Russell typically trades at a 15% P/E premium to the
S&P. Currently, both indices have about the same P/E multiple. Last but not
least, small-capitalization companies are beginning to garner the bulk of the
analysts' upward earnings revisions. Partly for the reasons discussed above,
analysts are lowering their earnings forecasts for many larger organizations.

As shown above, we are optimistic about the potential for smaller companies in
1998. However, as always, we continue to expect volatility in these stocks.
While we are careful to recognize profits when valuations move to excessive
levels, this volatility offers opportunities to find excellent businesses with
strong earnings growth selling at reasonable valuations. In addition to seeking
new and undiscovered stocks, we continue to seek well-managed companies that
have been punished by the market after suffering minor, temporary earnings
shortfalls from analyst
4
<PAGE>
PERFORMANCE
- --------------------------------------------------------------------------------
Mini-Cap Fund

expectations, while underlying business trends continue to be strong. As of
February 6, 1998, our largest overweights versus the Russell 2000 are Producer
Durables (6.4 percentage points overweighted), Energy (3.9) and Technology
(3.0). Our most significant underweightings are Utilities (6.5), Consumer
Discretionary (4.6) and Financial Services (3.3). If you have followed the Fund
over the years, you will notice that these bets are less extreme than they have
ever been. We feel that this is appropriate under current market conditions.

As always, thank you for your support.

<TABLE>
<CAPTION>
Annualized One Year
Total Returns for Period Ending December 31, 1997 Since Inception Total Reurn
- ------------------------------------------------- --------------- -----------

<S> <C> <C>
Jurika & Voyles Mini-Cap Fund 34.96% 23.86%
Lipper Analytical Services, Inc. Small Company Fund Index 18.33% 15.05%
Russell 2000 Index 20.47% 22.37%
</TABLE>

Jurika & Voyles Lipper Analytical Services,
Date Mini-Cap Fund Small Company Fund Index Russell 2000 Index
---- ------------- ------------------------ ------------------

09/30/94 10,000.00 10,000.00 10,000.00
12/31/94 10,650.00 9,985.06 9,813.55
03/31/95 11,832.22 10,544.98 10,265.63
06/30/95 14,146.57 11,521.84 11,227.98
09/30/95 15,509.13 12,963.02 12,337.60
12/31/95 16,210.44 13,142.73 12,605.20
03/31/96 17,690.90 13,884.39 13,249.06
06/30/96 19,586.73 14,985.28 13,911.56
09/30/96 19,948.86 15,173.84 13,960.08
12/31/96 21,423.65 15,029.67 14,686.35
3/31/97 20,270.07 13,613.33 13,927.61
6/30/97 23,983.50 15,936.44 16,185.49
9/30/97 29,319.66 18,367.76 18,594.26
12/31/97 26,535.65 17,292.16 17,971.51

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 through December 31, 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.
5
<PAGE>
PERFORMANCE
- --------------------------------------------------------------------------------
Value+Growth Fund

1997 Review

There were two distinctively different investment markets in the third and
fourth quarters of 1997. During the third quarter, the market favored those
companies with above-average earnings growth, strong balance sheets and
price/earnings multiples at reasonable levels. During this period, The
Value+Growth fund returned 10.14%, in line with the popular averages. The S&P
500 Stock Index and the Lipper Growth Index returned 7.49% and 10.25,
respectively.

The final quarter of the year demonstrated once again how fragile investor
confidence is today and how a single event can dramatically alter investor
sentiment. When the Asian crisis spilled over into our markets in the fourth
quarter, investors dumped stocks of companies which were deemed to have the
largest exposure to that part of the world, and smaller to medium companies with
historically higher degrees of earnings volatility. Capital flows favored
businesses perceived to be safe and predictable. For the most part, these were
the large, consumer oriented companies which dominate the S&P 500. Many of them
we believe were already overpriced, sporting valuations last seen in the early
1970's. Investors traded the short-term risk of volatile earnings with the
long-term risk of over-paying for an investment.

During the third quarter, favorable sector weightings and good stock picking led
to strong results in the fund. Energy and technology stocks were significant
drivers of performance. However, with the exposure to technology stocks and an
emphasis on money-center banks in our financial sector, the Value+Growth fund
experienced a very difficult fourth quarter, down 5.80% vs. a 2.87% gain for the
S&P 500. The Lipper Growth Index returned 0.67% during the same period. In
addition to the impact of the Southeast Asian crisis, some of the stocks, such
as Aetna and The Pep Boys, suffered from company specific events that impacted
the fund's performance.

1998 Outlook

We approach the coming investment environment not only with caution, but also
with an opportunistic sense of excitement. A correction in the market would be a
very healthy thing, in our opinion, and, for investors who are prepared and
invested wisely, would present an opportunity to buy great companies at
attractive prices. As such, we are maintaining a cash level of just under 10% in
the portfolio.

We see a world of winners and losers, where costs are rising, but
6
<PAGE>
PERFORMANCE
- --------------------------------------------------------------------------------
Value+Growth Fund

revenues and pricing are under pressure from slower sales and increased
competition from across the Pacific. Companies that can dictate their pricing
and control their costs will have a distinct advantage over those that cannot.
As more and more companies come out with bad news, the broad market should begin
to behave badly.

In contrast to the broad market, most of the companies in our portfolio boast
higher growth rates, yet sell at lower valuation levels. We believe that, over
time, our approach can produce superior returns with controlled levels of risk.
This has not been the case in the past few years, as the market has been
sensitive to the earnings volatility of many companies and sectors in our
portfolios. Historically, it has been the case in difficult market environments,
where investors become more selective about the price they pay for the growth
they get.

We are maintaining overweightings in the financial services and technology
sectors relative to the broad market. Our long-term outlook for technology is
extremely positive, and we feel strongly about the companies we hold. We had an
overweighting in health services, which has been reduced. We are watching our
remaining healthcare services holdings carefully, but feel positive about their
long-term potential. Finally, a few of our holdings have exposure to Asia,
specifically technology and money-center banks. We feel that the market has
overreacted to near-term earnings disappointments and that the stocks in the
portfolio represent attractive long-term investments.
7
<PAGE>
PERFORMANCE
- --------------------------------------------------------------------------------
Value+Growth Fund

<TABLE>
<CAPTION>
Annualized One Year
Total Returns for Period Ending December 31, 1997 Since Inception Total Reurn
- ------------------------------------------------- --------------- -----------

<S> <C> <C>
Jurika & Voyles Value+Growth Fund 23.31% 21.54%
Lipper Analytical Services, Inc. Growth Fund Index 23.22% 28.08%
S&P 500 Index 28.40% 33.39%
</TABLE>

Jurika & Voyles Lipper Analytical Services, Inc.
Date Value+Growth Fund Growth Fund Index S&P 500 Index
---- ----------------- ----------------- -------------

09/30/94 10,000.00 10,000.00 10,000.00
12/31/94 10,559.00 9,888.09 9,998.63
03/31/95 11,210.17 10,602.78 10,972.04
06/30/95 12,843.11 11,737.26 12,018.92
09/30/95 13,754.75 12,802.63 12,974.34
12/31/95 13,525.34 13,114.18 13,755.62
03/31/96 13,946.03 13,705.17 14,493.40
06/30/96 14,398.28 14,157.72 15,141.73
09/30/96 14,829.49 14,560.36 15,609.82
12/31/96 16,272.06 15,406.70 16,911.71
3/31/97 16,389.21 15,353.74 17,364.58
6/30/97 19,060.22 17,779.51 20,398.41
9/30/97 20,993.35 19,601.60 21,928.11
12/31/97 19,776.48 19,732.69 22,558.52

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 through December 31, 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.
8
<PAGE>
PERFORMANCE
- --------------------------------------------------------------------------------
Balanced Fund

1997 Review

There were two distinctively different investment markets in the third and
fourth quarters of 1997. During the third quarter, the market favored those
companies with above-average earnings growth, strong balance sheets and
price/earnings multiples at reasonable levels. During this period, The Balanced
Fund returned 6.56%, in line with the popular averages. The Lipper Balanced
Index returned 6.42% during the same period.

During the third quarter, favorable sector weightings and good stock picking led
to strong results in the equity component of the fund. Energy and technology
stocks were significant drivers of performance. However, with the exposure to
technology stocks and an emphasis on money-center banks in our financial sector,
the Balanced fund experienced a difficult fourth quarter, down 2.89% vs. 1.43%
for the Lipper Balanced Index. In addition to the impact of the Southeast Asian
crisis, some of the stocks, such as Aetna and The Pep Boys, suffered from
company specific events that impacted the fund's performance. Our holdings of
U.S. Treasuries helped to cushion the downside during the quarter.

1998 Outlook

approximately 10% in the portfolio.

We see a world of winners and losers, where costs are rising, but revenues and
pricing are under pressure from slower sales and increased competition from
across the Pacific. Companies that can dictate their pricing and control their
costs will have a distinct advantage over those that cannot. As more and more
companies come out with bad news, the broad market should begin to behave badly.

Sentiment in the bond market has switched from fear of inflation to fear of
deflation. Investors will keep a vigilant eye on the labor market, prices and
economic activity. We believe that rates will likely remain below 6% for the
majority of the year which should provide support to fixed income returns.
10
<PAGE>
PERFORMANCE
- --------------------------------------------------------------------------------
Balanced Fund

<TABLE>
<CAPTION>
Annualized One Year
Total Returns for Period Ending December 31, 1997 Since Inception Total Return
- ------------------------------------------------- --------------- ------------

<S> <C> <C>
Jurika & Voyles Balanced Fund 14.81% 16.68%
Lipper Balanced Fund Index 13.00% 20.01%
60% S&P 500/40% Lehman Bros. Gov't/Corp. Bond Index 14.33% 22.85%
</TABLE>

60% S&P 500/40%
Jurika & Voyles Lipper Balanced Lehman Bros.
Balanced Fund Fund Index Gov't/Corp. Bond Index
------------- ---------- ----------------------

09-Mar-92 10,000.00 10,000.00
31-Mar-92 9,940.00 10,000.00 9,994.00
30-Jun-92 10,162.22 10,108.00 10,267.65
30-Sep-92 10,720.09 10,459.28 10,644.35
31-Dec-92 11,546.81 10,482.22 10,948.78
31-Mar-93 12,118.07 11,020.25 11,410.36
30-Jun-93 12,332.58 11,299.05 11,544.52
30-Sep-93 13,060.30 11,665.13 11,828.48
31-Dec-93 13,512.35 12,167.90 12,001.20
31-Mar-94 13,330.45 12,493.34 11,632.53
30-Jun-94 13,215.63 11,829.82 11,635.42
30-Sep-94 13,544.18 11,978.21 12,015.50
31-Dec-94 13,215.67 12,094.04 12,011.58
31-Mar-95 14,142.31 12,077.23 12,921.56
30-Jun-95 15,573.18 12,886.46 13,917.05
30-Sep-95 16,480.13 13,819.79 14,670.15
31-Dec-95 16,573.75 14,224.80 15,407.29
31-Mar-96 17,049.65 15,165.62 15,847.53
30-Jun-96 17,528.65 15,331.39 16,311.86
30-Sep-96 17,966.57 15,139.53 16,738.79
31-Dec-96 19,139.60 16,285.84 17,742.23
31-Mar-97 19,536.18 17,350.26 18,027.28
30-Jun-97 21,580.67 17,416.62 20,101.52
30-Sep-97 22,996.70 19,783.21 21,237.20
31-Dec-97 22,331.31 19,557.86 21,795.81

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 through December 31, 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.

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.
11
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1997
(Unaudited)
- --------------------------------------------------------------------------------
Mini-Cap Fund
Number of
Description Shares Value
- ------------------------------------------------- ------ -----

COMMON STOCKS
BASIC INDUSTRIES
Building Materials
NCI Building Systems, Inc. ...................... 52,500 $1,863,750
----------

Chemicals
OM Group, Inc. .................................. 40,000 1,465,000
R.P.M., Inc. .................................... 95,300 1,453,324
----------
2,918,324
Iron\Steel
Carbide Graphite Group, Inc. .................... 78,000 2,632,500
Northwest Pipe Co. .............................. 42,500 1,020,000
Schnitzer STL Industries, Inc. .................. 75,000 2,104,687
Ucar International, Inc. ........................ 40,000 1,597,500
----------
7,354,687
----------

TOTAL BASIC INDUSTRIES ....................................... 12,136,761
----------

CONSUMER CYCLICAL
Auto Parts
Dura Automotive Systems, Inc. ................... 58,600 1,450,350

Homebuilding
Kaufman & Broad Home Corp. ...................... 122,000 2,737,375

Retail
Cost Plus, Inc. ................................. 66,800 1,937,200
Gymboree Corp. .................................. 30,000 821,250
Paul Harris Stores, Inc. ........................ 185,000 1,861,562
Quiksilver, Inc. ................................ 65,200 1,866,350
St John's Knits Corp. ........................... 37,200 1,488,000
----------
7,974,362
----------
TOTAL CONSUMER CYCLICALS .................................... 12,162,087
----------
CONSUMER SERVICES
Entertainment
GTech Holdings Corp. ............................ 80,000 2,555,000
----------
Leisure
Steiner Leisure, Ltd. ........................... 76,800 2,371,200

See Notes to Financial Statements.
12
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1997
(Unaudited)
- --------------------------------------------------------------------------------
Mini-Cap Fund
Number of
Description Shares Value
- ------------------------------------------------- ------ -----

Leisure-Continued
West Marine, Inc. ............................... 115,000 $2,573,125
----------
4,944,325
----------
Restaurant
Foodmaker, Inc. ................................. 148,000 2,229,250
O'Charley's, Inc. ............................... 110,000 1,925,000
Showbiz Pizza Time, Inc. ........................ 70,000 1,610,000
----------
5,764,250
----------
TOTAL CONSUMER SERVICES .................................... 13,263,575
----------
CONSUMER STAPLES
Cosmetics
Helen of Troy, Ltd. ............................. 166,100 2,678,363
----------
Food
Authentic Specialty Foods, Inc. ................. 100,000 1,362,500
Pilgrims Pride Corp. ............................ 170,000 2,645,625
----------
4,008,125
----------
TOTAL CONSUMER STAPLES ...................................... 6,686,488
----------
ENERGY
Oil & Gas Services
HVIDE Marine, Inc. .............................. 45,000 1,158,791
Lone Star Technologies, Inc. .................... 91,000 2,582,125
Mitcham Industries, Inc. ........................ 60,000 1,095,000
Pride International, Inc. ....................... 59,000 1,489,750
Simon Transnational Services, Inc. .............. 81,300 1,951,200
Snyder Oil Corp. ................................ 120,000 2,190,000
Transcoastal Marine Services, Inc. .............. 5,500 78,375
Veritas DGC, Inc. ............................... 38,100 1,504,950
----------
12,050,191
----------
Software
Symantec Corp. ................................... 165,000 3,619,688

See Notes to Financial Statements.
13
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1997
(Unaudited)
- --------------------------------------------------------------------------------
Mini-Cap Fund
Number of
Description Shares Value
- ------------------------------------------------- ------ -----
Software-Continued
System Software Associates, Inc. ................. 102,700 $898,625
----------
4,518,313
----------
TOTAL ENERGY ................................................ 16,568,504
----------

FINANCIAL SERVICES
Banks
MAF Bancorp, Inc. ............................... 82,500 2,918,438
Quaker City Bancorp, Inc. ....................... 80,000 1,750,000
----------
4,668,438
----------
Miscellaneous Finance
Capmac Holdings, Inc. ........................... 75,000 2,606,250
Legg Mason, Inc. ................................ 36,000 2,013,750
----------
4,620,000
----------
TOTAL FINANCIAL SERVICES .................................... 9,288,438
----------
HEALTHCARE PRODUCTS
Medical Products
Atrix Laboratories, Inc. ........................ 113,100 1,668,225
----------

HEALTHCARE SERVICES
HMO's
Horizon Health Corp. ............................ 104,000 2,418,000
Trigon Healthcare, Inc. ......................... 80,000 2,090,000
----------
TOTAL HEALTHCARE SERVICES ................................... 4,508,000
----------
INDUSTRIAL PRODUCTS
Aerospace \ Defense
Doncasters, PLC ................................. 148,000 3,126,500
----------

Electronics
Atmel Corp. ..................................... 65,000 1,206,562
General Cable Corp. ............................. 65,000 2,352,188
General Scanning, Inc. .......................... 67,700 1,167,825
Robbins & Meyers Corp. .......................... 40,000 1,585,000
----------
6,311,575
----------
See Notes to Financial Statements.
14
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1997
(Unaudited)
- --------------------------------------------------------------------------------
Mini-Cap Fund
Number of
Description Shares Value
- ------------------------------------------------- ------ -----
Machinery
Alamo Group, Inc. ............................... 71,700 $1,554,994
CTB International Corp. ......................... 115,000 1,638,750
Gardner Denver Machinery, Inc. .................. 72,750 1,841,484
Hirsch International Group ...................... 110,000 2,420,000
Lancer Corp. .................................... 65,550 753,825
----------
8,209,053
----------
Office Equipment
Knoll, Inc. ..................................... 50,000 1,606,250
----------
TOTAL INDUSTRIAL PRODUCTS 19,253,378
----------
INDUSTRIAL SERVICES
Construction
Granite Construction, Inc. ...................... 68,000 1,564,000
Willbros Group, Inc. ............................ 67,100 1,006,500
----------
2,570,500
----------
Distribution
Pameco Corp. .................................... 60,000 1,140,000
----------
TOTAL INDUSTRIAL SERVICES ................................... 3,710,500
----------

INSURANCE
Life Insurance
Amerus Life Holdings, Inc. 88,756 3,272,877
Penncorp Financial Group, Inc. .................. 77,700 2,772,919
----------
6,045,796
----------
Property\Casualty Insurance
Amerin Corp. .................................... 100,000 2,800,000
ESG RE Ltd. ..................................... 73,600 1,729,600
HCC Insurance Holdings, Inc. .................... 67,800 1,440,750
----------
5,970,350
----------
TOTAL INSURANCE ............................................. 12,016,146
----------
REITS
Real Estate Investment Trusts
American Residental Investment Trust ............ 118,800 1,410,750
Capstone Capa Corp. ............................. 59,200 1,513,300

See Notes to Financial Statements.
15
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1997
(Unaudited)
- --------------------------------------------------------------------------------
Mini-Cap Fund
Number of
Description Shares Value
- ------------------------------------------------- ------ -----
Real Estate Investment Trusts-Continued
Captec Net Lease Rlth, Inc. ..................... 86,800 $1,491,875
Glemboro Reality Trust, Inc. .................... 30,000 888,750
Golf Trust America, Inc. ........................ 57,000 1,653,000
----------
TOTAL REITS ................................................. 6,957,675
----------
TECHNOLOGY
Circuit Manufacturing
Hadco Corp. ..................................... 31,100 1,407,275
----------
Computer Hardware & Peripheral
Zebra Technologies Corp. ........................ 82,000 2,439,500
----------
Consumer\Commercial Software
Dataworks Corp. ................................. 93,900 1,866,263
SPSS, Inc. ...................................... 69,700 1,341,725
----------
3,207,988
----------
Semiconductor Manufacturers
Kulicke+Soffa Industries, Inc. .................. 62,000 1,154,750
Peak International, Ltd. ........................ 100,000 2,087,500
PMC Sierra, Inc. ................................ 56,500 1,751,500
----------
4,993,750
----------
TOTAL TECHNOLOGY ............................................ 12,048,513
----------
TRANSPORTATION
Miscellaneous Transportation
Circle International Group, Inc. ................ 15,100 346,356
----------

Railroads
Genesee & Wyo, Inc. ............................. 125,900 2,942,913
----------
TOTAL TRANSPORTATION 3,289,269
----------
TOTAL COMMON STOCKS (Cost $127,668,062)........................ $133,557,559
------------
See Notes to Financial Statements.
16
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1997
(Unaudited)
- --------------------------------------------------------------------------------
Mini-Cap Fund
Number of
Description Shares Value
- ------------------------------------------------- ------ -----
REPURCHASE AGREEMENT
State Street Bank & Trust Co. $11,933,000 at
5.00% (Agreement dated December 31, 1997;
to be repurchased at $11,936,315 on
01/02/98; collateralized by $10,475,000
US Treasury Notes due 2/15/23)(Value
$12,155,744) (Cost $11,933,000) ............. 11,933,000 $11,933,000
------------
TOTAL INVESTMENTS (Cost $139,601,062) ........................ 145,490,559
------------
Liabilities in Excess of Cash and Other Assets 3,041,131
------------

NET ASSETS .................................................... $142,449,428
============

See Notes to Financial Statements.
17
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1997
(Unaudited)
- --------------------------------------------------------------------------------
Value+Growth Fund
Number of
Description Shares Value
- ------------------------------------------------- ------ -----
COMMON STOCKS
BASIC INDUSTRIES
Aluminum
Reynolds Metals Co. ............................. 8,000 $480,000
----------
Building Materials
American Standard Co., Inc. ..................... 20,800 796,900
----------
Chemicals
Morton International, Inc. ...................... 23,400 804,375
OM Group, Inc. .................................. 14,750 540,218
----------
1,344,593
----------
Iron/Steel
Ucar International, Inc. ........................ 17,700 706,894
----------
Paper & Pulp
Asia Pulp & Paper Ltd. .......................... 17,000 171,063
----------
TOTAL BASIC INDUSTRIES ....................................... 3,499,450
----------
COMMUNICATIONS
Communication Equipment
ECI Telecom Ltd. ................................ 29,800 759,900
----------
CONSUMER CYCLICALS
Autoparts
Pep Boys Manny, Moe & Jack ...................... 31,000 740,125
----------
Hotel/Motel
Hilton Hotels Corp. ............................. 17,700 526,575
----------
Publishing
McGraw Hill Companies, Inc. ..................... 6,900 510,600
----------
Retail
American Stores Co. ............................. 48,300 993,168
Circuit City Stores, Inc. ....................... 14,200 504,988
Dayton Hudson Corp. ............................. 8,900 600,750
Hannaford Brothers Co. .......................... 6,900 299,719
----------
2,398,625
----------
See Notes to Financial Statements.
18
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1997
(Unaudited)
- --------------------------------------------------------------------------------
Value+Growth Fund
Number of
Description Shares Value
- ------------------------------------------------- ------ -----
Toys
Mattel, Inc. .................................... 17,100 $636,975
----------
TOTAL CONSUMER CYCLICALS 4,812,900
----------
CONSUMER SERVICES
Entertainment
GTech Holdings Corp. ............................ 15,800 504,613
----------
Leisure
Sabre Group Holdings ............................ 15,600 450,450
----------
TOTAL CONSUMER SERVICES ....................................... 955,063
----------
ENERGY
Natural Gas
K N Energy, Inc. ................................ 14,100 761,400
----------
Oil Exploration and Production
Vastar Resources, Inc. .......................... 18,900 675,675
----------
Oil & Gas Drilling
Santa Fe International Corp. .................... 17,000 691,688
----------
Oil & Gas Services
Ultramar Diamond Shamrock ....................... 21,800 694,875
Union Tex Petroleum Holdings, Inc. .............. 27,200 566,100
Weatherford Enterra, Inc. ....................... 11,150 487,812
----------
1,748,787
----------
TOTAL ENERGY 3,877,550
----------
FINANCIAL SERVICES
Banks
Chase Manhattan Corp. ........................... 11,500 1,259,250
Citicorp ........................................ 11,200 1,416,100
First Union Corp. ............................... 17,100 876,375
Fleet Financial Group, Inc. ..................... 4,100 307,244
Mercantile Bancorporation, Inc. ................. 12,106 744,519
Washington Mutual, Inc. ......................... 17,700 1,129,481
----------
5,732,969
----------
See Notes to Financial Statements.
19
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1997
(Unaudited)
- --------------------------------------------------------------------------------
Value+Growth Fund
Number of
Description Shares Value
- ------------------------------------------------- ------ -----
Diversified Financial Services
CIT Group, Inc. ................................. 14,800 $477,300
----------
TOTAL FINANCIAL SERVICES 6,210,269
----------
HEALTHCARE SERVICES
Drugs
Abbott Laboratories ............................. 16,300 1,068,668
Biogen, Inc. .................................... 12,600 458,325
----------
1,526,993
----------
HMO's
Foundation Health Systems, Inc. ................. 14,780 330,703
Medpartners, Inc. ............................... 49,838 1,115,125
----------
1,445,828
----------
Hospitals/Long-Term
Tenet HealthCare Corp. .......................... 28,300 937,438
----------
TOTAL HEALTHCARE SERVICES ..................................... 3,910,259
----------
INDUSTRIAL PRODUCTS
Aerospace/Defense
Lockheed Martin Corp. ........................... 14,000 1,379,000
Northrop Grumman Corp. .......................... 2,500 287,500
----------
1,666,500
----------
Construction
Fluor Corp. ..................................... 10,700 399,913
----------
Electronics
Atmel Corp. ..................................... 19,800 367,538
3 Com Corp. ..................................... 40,750 1,423,703
----------
1,791,241
----------

Machinery
Briggs & Stratton, Corp. ........................ 4,600 223,387
Case Corp. ...................................... 7,700 465,369
Deere & Company ................................. 9,000 524,813
----------
1,213,569
----------
See Notes to Financial Statemente.
20
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1997
(Unaudited)
- --------------------------------------------------------------------------------
Value+Growth Fund
Number of
Description Shares Value
- ------------------------------------------------- ------ -----
Manufacturing
Eaton Corp. ..................................... 6,200 $553,350
Parker Hannafin, Corp. .......................... 2,850 130,744
----------
684,094
----------
Office Equipment
Xerox Corp. ..................................... 20,100 1,483,630
----------
TOTAL INDUSTRIAL PRODUCTS .................................... 7,238,947
----------
INSURANCE
Life Insurance
AETNA Life & Casualty Co. ....................... 16,900 1,192,506
Protective Life Corp. ........................... 9,400 561,650
Relistar Financial Corp. ........................ 14,000 576,625
----------
2,330,781
----------
Multi-Line Insurance
Cigna Corp. ..................................... 4,200 726,863
----------

Property\Casualty Insurance
Amerin Corp. .................................... 15,000 420,000
IPC Holdings Ltd. ............................... 16,100 518,219
Travelers Property Casualty Corp. ............... 12,400 545,600
Vesta Insurance Group, Inc. ..................... 5,600 332,500
----------
1,816,319
----------
TOTAL INSURANCE ............................................. 4,873,963
----------
TECHNOLOGY
Computer Hardware & Peripheral
EMC Corp. ....................................... 48,400 1,327,975
Zebra Technologies Corp. ........................ 17,300 514,675
----------
1,842,650
----------
Computer Services
Electronic Data Systems Corp. ................... 16,300 716,181
----------
Consumer\Commercial Services
Adobe Systems, Inc. ............................. 20,300 837,375

See Notes to Financial Statements.
21
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1997
(Unaudited)
- --------------------------------------------------------------------------------
Value+Growth Fund
Number of
Description Shares Value
- ------------------------------------------------- ------ -----
Consumer\Commercial Services-Continued
Synopsis, Inc. .................................. 13,500 $482,625
----------
1,320,000
----------
Semiconductor Manufacturers
LSI Logic Corp. ................................. 36,000 711,000
----------
TOTAL TECHNOLOGY ............................................ 4,589,831
----------

TRANSPORTATION
Railroads
Illinois Central Corp. .......................... 12,300 418,968
----------

UTILITIES
Utility Service Providers
AES Corp. ....................................... 36,700 1,711,137
----------
TOTAL COMMON STOCKS (Cost $40,378,523) ...................... 42,858,237
----------
REPURCHASE AGREEMENT
State Street Bank & Trust Co. $3,991,000 at
5.00% (Agreement dated December 31, 1997;
to be repurchased at $3,991,887 on 01/02/98;
collateralized by $3,505,000 US Treasury Notes
due 2/15/23)(Value $4,067,387)
(Cost $3,991,000) .............................. 3,991,000 3,991,000
----------
TOTAL INVESTMENTS (Cost $44,370,103) ........................ 46,849,237
----------
Cash and Other Assets, Net of Liabilities .................... 1,184,887
----------
NET ASSETS .................................................... $48,034,124
===========
See Notes to Financial Statements.
22
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1997
(Unaudited)
- --------------------------------------------------------------------------------
Balanced Fund
Number of
Description Shares Value
- ------------------------------------------------- ------ -----
COMMON STOCKS
BASIC INDUSTRIES
Aluminum
Reynolds Metals Co. ............................. 7,000 $420,000
----------
Building Materials
American Standard Co., Inc. ..................... 20,000 766,250
----------
Chemicals
OM Group, Inc. .................................. 11,600 424,850
Morton International, Inc. ...................... 17,000 584,375
----------
1,009,225
----------
Iron\Steel
Ucar International, Inc. ........................ 14,000 559,125
----------
Paper & Pulp
Asia Pulp+Paper Limited ......................... 20,300 204,269
----------
TOTAL BASIC INDUSTRIES ..................................... 2,958,869
----------
COMMUNICATIONS
Communication Equipment
ECI Telecom Limited ............................. 24,800 632,400
----------
CONSUMER SERVICES
Entertainment
GTech Holdings Corp. ............................ 12,500 399,219
----------
Hotel\Motel
Hilton Hotels Corp. ............................. 13,800 410,550
----------
Leisure
Sabre Group Holdings ............................ 6,500 187,687
----------
TOTAL CONSUMER SERVICES .................................... 997,456
----------
CONSUMER CYCLICALS
Autoparts
Pep Boys Manny, Moe & Jack ...................... 23,600 563,450
----------
Publishing
McGraw Hill Companies, Inc. ..................... 6,000 444,000
----------
Retail
American Stores Company ......................... 42,600 875,963

See Notes to Financial Statements.
23
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1997
(Unaudited)
- --------------------------------------------------------------------------------
Balanced Fund
Number of
Description Shares Value
- ------------------------------------------------- ------ -----
Retail-Continued
Circuit City Stores, Inc. ....................... 12,400 $440,975
Dayton Hudson Corp. ............................. 6,400 432,000
Hannaford Brothers Co. .......................... 5,200 225,875
----------
1,974,813
----------
Toys
Mattel, Inc. .................................... 12,400 461,900
----------
TOTAL CONSUMER CYCLICAL ..................................... 3,444,163
----------
ENERGY
Natural Gas
K N Energy, Inc. ................................ 9,500 513,000
----------
Oil
Vastar Resources, Inc. .......................... 14,500 518,375
----------

Oil & Gas Drilling
Santa Fe International Corp. .................... 13,400 545,212
----------

Oil & Gas Services
Ultramar Diamond Shamrock ....................... 17,600 561,000
Union Texas Petroleum Holdings, Inc. ............ 17,600 366,300
Weatherford Enterra, Inc. ....................... 7,150 312,813
----------
1,240,113
----------
TOTAL ENERGY ............................................... 2,816,700
----------
FINANCIAL SERVICES
Banks
Chase Manhattan Corp. ........................... 10,600 1,160,700
Citicorp ........................................ 10,400 1,314,950
First Union Corp. ............................... 13,400 686,750
Fleet Financial Group, Inc. ..................... 6,000 449,625
Mercantile Bancorporation, Inc. ................. 10,824 665,676
Washington Mutual Inc. .......................... 15,100 963,569
----------
5,241,270
----------

See Notes to Financial Statements.
24
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1997
(Unaudited)
- --------------------------------------------------------------------------------
Balanced Fund
Number of
Description Shares Value
- ------------------------------------------------- ------ -----
Diversified Financial Services
CIT Group, Inc. ................................. 15,300 $493,425
----------
TOTAL FINANCIAL SERVICES .................................... 5,734,695
----------
HEALTHCARE SERVICES
Drugs
Abbott Laboratories ............................. 13,400 878,537
Biogen, Inc. .................................... 10,100 367,388
----------
1,245,925
----------
HMO's
Foundation Health Systems, Inc. ................. 12,380 277,003
Medpartners Inc. ................................ 43,800 980,025
----------
1,257,028
----------
Hospitals\Long Term
Tenet Healthcare Corp. .......................... 28,300 937,437
----------
TOTAL HEALTHCARE SERVICES 3,440,390
----------

INDUSTRIAL PRODUCTS
Aerospace\Defense
Lockheed Martin Corp. ........................... 13,700 1,349,450
----------
Construction
Fluor Corp. ..................................... 9,100 340,113
----------
Electronics
Atmel Corp. ..................................... 18,600 345,263
3 Com Corp. ..................................... 35,775 1,249,889
----------
1,595,152
----------
Machinery
Briggs + Stratton Corp. ......................... 4,200 203,963
Case Corp. ...................................... 6,700 404,931
Deere + Co. ..................................... 7,900 460,669
----------
1,069,563
----------
Manufacturing
Eaton Corp. ..................................... 4,300 383,774

See Notes to Financial Statements.
25
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1997
(Unaudited)
- --------------------------------------------------------------------------------
Balanced Fund
Number of
Description Shares Value
- ------------------------------------------------- ------ -----
Manufacturing-Continued
Parker Hannafin Corp. ........................... 6,000 $275,250
----------
659,024
----------
Office Equipment
Xerox Corp. ..................................... 15,500 1,144,093
----------
TOTAL INDUSTRIAL PRODUCTS ................................... 6,157,395
----------

INSURANCE
Life Insurance
Aetna, Inc. ..................................... 10,800 444,825
Protective Life Corp. ........................... 7,700 460,075
Relistar Financial Corp. ........................ 14,600 1,030,212
----------
1,935,112
----------
Multi-Line Insurance
Cigna Corp. ..................................... 4,000 692,250
----------

Property\Casualty Insurance
Amerin Corp. .................................... 8,500 238,000
IPC Holdings, Ltd. .............................. 12,900 415,219
Travelers Property Casualty Corp. ............... 10,800 475,200
Vesta Insurance Group, Inc. ..................... 7,250 430,469
----------
1,558,888
----------
TOTAL INSURANCE ............................................ 4,186,250
----------
TECHNOLOGY
Computer Hardware & Peripheral
EMC Corp. ....................................... 34,800 954,825
Zebra Technologies Corp. ........................ 14,000 416,500
----------
1,371,325
----------
Computer Services
Electronic Data Systems Corp. ................... 14,400 632,700
----------

Consumer\Commercial Services
Adobe Systems, Inc. ............................. 17,200 709,500
Synopsis, Inc. .................................. 10,900 389,675
----------
1,099,175
----------
See Notes to Financial Statements.
26
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1997
(Unaudited)
- --------------------------------------------------------------------------------
Balanced Fund
Number of
Description Shares Value
- ------------------------------------------------- ------ -----
Semiconductor Manufacturers
LSI Logic Corp. ................................. 31,500 $622,125
----------
TOTAL TECHNOLOGY ............................................ 3,725,325
----------
TRANSPORTATION
Railroads
Illinois Central Corp. .......................... 11,300 384,906
----------
UTILITIES
Utility Service Providers AES Corp. ............. 30,700 1,431,387
----------
TOTAL COMMON STOCKS (Cost $29,756,468) ........................ 35,909,936
----------

Par Value
---------
CORPORATE BONDS
Communication Equipment
MCI Communications Corp.
7.125%, 6/15/27 ................................ $750,000 788,640
World Communications, Inc.
7.550%, 9/15/01 ................................ 925,000 970,168
----------
1,758,808
----------
Entertainment
Time Warner, Inc.
6.850%, 1/15/26 ................................ 1,000,000 1,033,330
Viacom International, Inc.
10.250%, 9/15/01 ............................... 1,000,000 1,080,000
----------
2,113,330
----------
Finance
Paine Webber Group, Inc.
9.250%, 12/15/01 ............................... 800,000 874,496
Salomon, Inc.
6.075%, 4/5/99 ................................. 1,000,000 1,000,000
----------
1,874,496
----------
See Notes to Financial Statements.
27
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1997
(Unaudited)
- --------------------------------------------------------------------------------
Balanced Fund
Number of
Description Shares Value
- ------------------------------------------------- ------ -----
Food
Coca Cola Enterprises, Inc.
6.700%, 10/15/36 ............................... $750,000 $778,545
----------
Oil & Gas Services
Gulf CDA Res Ltd.
9.000%, 8/15/99 ................................ 500,000 519,355
Gulf CDA Res Ltd.
8.250%, 3/15/17 ................................ 500,000 544,185
----------
1,063,540
----------

Paper & Pulp
Glatfelter PH, Co.
3.875%, 7/15/07 ................................ 1,000,000 1,025,580
Indah Kiat Paper + Pulp
8.875%, 11/1/00 ................................ 1,000,000 920,000
----------
1,945,580
----------

Utilities
Arkansas Power and Light Co.
10.000%, 2/1/20 ................................ 4,000 4,228
----------
TOTAL CORPORATE BONDS (Cost $9,379,065) ..................... 9,538,527
----------
ASSET BACKED SECURITIES
Federal National Mortgage Association
7.100%, 4/12/06 (Cost $910,530) ............... 1,000,000 925,780
----------
INTEREST ONLY SECURITIES
Federal Home Loan Mortgage Corporation
1.050%, 4/15/08 ................................ 7,088,742 127,901
3.093%, 5/15/08 ................................ 3,122,514 147,445
2.375%, 5/15/08 ................................ 9,183,900 445,765
11.160%, 12/15/05 .............................. 2,754,949 492,344
10.065%, 12/15/21 .............................. 3,551,160 961,387
10.311%, 1/15/17 ............................... 5,849,303 1,094,417
----------
3,269,259
----------
Federal National Mortgage Association
3.881%, 9/25/15 ................................ 5,881,447 152,101
3.409%, 7/25/22 ................................ 4,006,951 236,467

See Notes to Financial Statments.
28
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1997
(Unaudited)
- --------------------------------------------------------------------------------
Balanced Fund
Number of
Description Shares Value
- ------------------------------------------------- ------ -----
Federal National Mortgage Association-Continued
11.999%, 3/25/22 .............................. $1,215,548 $346,431
2.600%, 8/18/15 ............................... 10,192,365 255,693
7.500%, 3/18/26 ............................... 1,172,332 329,186
----------
1,319,878
----------
Government National Mortgage Association
0.600%, 8/16/24 ............................... 27,328,799 375,771
10.781%, 4/16/17 ............................... 415,933 431,011
----------
806,782
----------
TOTAL INTEREST ONLY SECURITIES (Cost $5,171,311) ........... 5,395,919
----------
U.S. TREASURY OBLIGATIONS
U.S. Treasury Bills
5.230%, 1/22/98 ................................. 2,000,000 1,993,898
----------
U.S. Treasury Bonds
7.500%, 11/15/16 ................................ 1,700,000 1,985,515
----------
U.S. Treasury Notes
7.500%, 2/15/05 ................................. 750,000 824,295
6.250%, 8/31/00 ................................. 2,000,000 2,027,120
8.000%, 5/15/01 ................................. 3,000,000 3,205,650
----------
6,057,065
----------

U.S. Treasury STRIP
0.010%, 11/15/09 ................................ 1,400,000 698,852
----------
TOTAL U.S. TREASURY OBLIGATIONS (Cost $10,448,756) 10,735,330
----------
See Notes to Financial Statements.
29
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1997
(Unaudited)
- --------------------------------------------------------------------------------
Balanced Fund
Number of
Description Shares Value
- ------------------------------------------------- ------ -----
REPURCHASE AGREEMENT
State Street Bank & Trust Co. $7,574,000 at
5.00% (Agreement dated December 31, 1997;
to be repurchased at $7,576,104 on 01/02/98;
collateralized by $6,650,000 U.S. Treasury
Notes due 02/15/23)(Value $7,717,012)
(Cost $7,574,000) ..............................$7,574,000 $7,574,000
TOTAL INVESTMENTS (Cost $63,240,138) ......................... 70,079,492
Cash and Other Assets, Net of Liabilities .................... 604,957
TOTAL NET ASSETS $70,684,449

See Notes to Financial Statements.
30
<PAGE>
Jurika & Voyles Fund Group
Statements of Assets and Liabilities
December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------

Mini-Cap Value+ Balanced
Fund Growth Fund Fund
---- ----------- ----
<S> <C> <C> <C>
ASSETS
Investments in securities at market value
(cost of $139,601,062, $44,369,523,
63,240,138) $ 145,490,559 $ 46,849,237 $ 70,079,492
Cash 687 581 954
Receivables:
Investment securities sold 658,378 179,460 505
Income receivable 49,428 24,300 470,940
Fund shares sold 1,133,381 1,055,296 240,182
Deferred organization costs 16,223 16,223 4,781
------------- ------------- -------------
Total assets 147,348,656 48,125,097 70,796,854
------------- ------------- -------------
LIABILITIES
Payables:
Investment securities purchased 3,020,562
Capital gains and dividends 1,362,668 19,537 42,354
Fund shares repurchased 460,677 176
Accrued expenses 55,321 71,436 69,875
------------- ------------- -------------
Total liabilities 4,899,228 90,973 112,405
------------- ------------- -------------
NET ASSETS $ 142,449,428 $ 48,034,124 $ 70,684,449
============= ============= =============

COMPOSITION OF NET ASSETS
Paid-in capital $ 132,208,497 $ 45,197,306 $ 62,944,187
Accumulated undistributed net investment
(loss) (762,101) (60,769) (5,076)
Accumulated net realized gain 5,113,535 417,872 905,984
Net unrealized appreciation 5,889,497 2,479,715 6,839,354
------------- ------------- -------------
NET ASSETS $ 142,449,428 $ 48,034,124 $ 70,684,449
============= ============= =============

Number of shares, $0.01 par value, issued
and outstanding (unlimited shares
authorized) 7,436,085 3,188,104 4,780,875
------------- ------------- -------------
NET ASSET VALUE PER SHARE $ 19.16 $ 15.07 $ 14.78
============= ============= =============
</TABLE>
See Notes to Financial Statements.
31
<PAGE>
Jurika & Voyles Fund Group
Statements of Operations
Six-Months Ended December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
Mini-Cap Value+ Balanced
Fund Growth Fund Fund
---- ----------- ----
<S> <C> <C> <C>
INVESTMENT INCOME
Income
Dividend income $ 200,719 $ 251,489 $ 378,402
Interest income 508,854 54,405 633,629
------------ ------------ ------------
Total income 709,573 305,894 1,012,031
------------ ------------ ------------
Expenses (Note 3)
Investment advisory fees 768,190 126,898 262,550
Custodian fees 49,402 21,201 30,750
Transfer agent fees 34,167 18,148 28,734
Legal fees 12,098 2,579 6,050
Administration fees 35,243 25,206 26,975
Audit fees 6,539 2,761 4,537
Shareholder reporting fees 9,703 2,421 5,642
Registration fees 11,994 5,042 5,247
Trustees fees 8,319 7,058 7,194
Amortization of deferred organization costs 4,722 4,721 1,279
Shareholder service fees 192,047 37,323 63,936
Miscellaneous fees 4,537 1,022 3,529
------------ ------------ ------------
Total expenses 1,136,961 254,380 446,423
Less/Add: expense (reimbursement)
recoupment 13,306 (67,766) (83,174)
Add: credit line commitment fees 3,025 504 1,512
------------ ------------ ------------
Net expenses 1,153,292 187,118 364,761
------------ ------------ ------------
Net investment income (loss) $ (443,719) $ 118,776 $ 647,270
------------ ------------ ------------
NET REALIZED AND
UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain on investments $ 26,215,823 $ 1,793,641 $ 2,991,773
Change in net unrealized (depreciation) on
investments (13,188,061) (1,497,030) (1,747,835)
------------ ------------ ------------
Net gain on investments 13,027,762 296,611 1,243,938
------------ ------------ ------------
Net increase in net assets resulting from
operations $ 12,584,043 $ 415,387 $ 1,891,208
============ ============ ============
</TABLE>
See Notes to Financial Statements.
32
<PAGE>
Jurika & Voyles Fund Group
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Mini-Cap Fund
-----------------------------
For the periods
-----------------------------
07/01/97 07/01/96
to 12/31/97 to 6/30/97
----------- ----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment (loss) $ (443,719) $ (90,775)
Net realized gain on investments 26,215,823 9,560,902
Change in net unrealized appreciation
(depreciation) on investments (13,188,061) 12,401,072
------------- -------------
Net increase in net assets from operations 12,584,043 21,871,199
------------- -------------
Distributions to shareholders:
From net investment income -- --
From net realized gains (30,810,487) (3,190,683)
------------- -------------
Total distributions (30,810,487) (3,190,683)
------------- -------------

Fund share transactions:
Proceeds from shares sold 55,829,346 79,855,448
Net asset value of shares issued
on reinvestment of distributions 28,751,559 2,999,212
Cost of shares redeemed (46,957,581) (71,179,955)
------------- -------------
Net increase from Fund share transactions 37,623,324 11,674,705
Net increase in net assets 19,396,880 30,355,221
------------- -------------
NET ASSETS
Beginning of year 123,052,548 92,697,327
------------- -------------
End of year $ 142,449,428 $ 123,052,548
============= =============

CHANGE IN SHARES
Shares sold 2,383,609 4,230,103
Shares issued on reinvestment of distributions 1,439,106 161,334
Shares redeemed (2,022,453) (3,797,059)
------------- -------------
Net increase 1,800,262 594,378
============= =============
</TABLE>
See Notes to Financial Statements.
33
<PAGE>
Jurika & Voyles Fund Group
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Value+Growth Fund
------------------------------
For the periods
------------------------------
07/01/97 07/01/96
to 12/31/97 to 6/30/97
----------- ----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income $ 118,776 $ 90,334
Net realized gain on investments 1,793,641 3,138,603
Change in net unrealized appreciation
(depreciation) on investments (1,497,030) 2,300,581
------------ ------------
Net increase in net assets from operations 415,387 5,529,518
------------ ------------

Distributions to shareholders:
From net investment income (120,896) (90,334)
From net realized gains (3,451,349) (1,724,310)
------------ ------------
Total distributions (3,572,245) (1,814,644)
------------ ------------
Fund share transactions:
Proceeds from shares sold 28,127,408 11,214,419
Net asset value of shares issued
on reinvestment of distributions 3,471,765 1,766,339
Cost of shares redeemed (4,402,038) (13,957,484)
------------ ------------
Net increase (decrease) from Fund share transactions 27,197,135 (976,726)
------------ ------------

Net increase in net assets 24,040,277 2,738,148

NET ASSETS
Beginning of year 23,993,847 21,255,699
------------ ------------
End of year $ 48,034,124 $ 23,993,847
============ ============

CHANGE IN SHARES
Shares sold 1,770,031 800,854
Shares issued on reinvestment of distributions 222,230 128,814
Shares redeemed (279,204) (1,006,898)
------------ ------------
Net increase (decrease) 1,713,057 (77,230)
============ ============
</TABLE>
See Notes to Financial Statements.
34
<PAGE>
Jurika & Voyles Fund Group
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Balanced Fund
----------------------------
For the periods
----------------------------
07/01/97 07/01/96
to 12/31/97 to 6/30/97
----------- ----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income $ 647,270 $ 1,409,187
Net realized gain on investments 2,991,773 5,924,699
Change in net unrealized appreciation
(depreciation) on investments (1,747,835) 4,204,111
------------ ------------
Net increase in net assets from operations 1,891,208 11,537,997
------------ ------------

Distributions to shareholders:
From net investment income (705,068) (1,356,465)
From net realized gains (6,870,710) (4,582,193)
------------ ------------
Total distributions (7,575,778) (5,938,658)
------------ ------------

Fund share transactions:
Proceeds from shares sold 10,377,866 13,993,658
Net asset value of shares issued
on reinvestment of distributions 7,422,474 5,763,051
Cost of shares redeemed (4,829,462) (8,937,283)
------------ ------------
Net increase from Fund share transactions 12,970,878 10,819,426
------------ ------------

Net increase in net assets 7,286,308 16,418,765
NET ASSETS
Beginning of year 63,398,141 46,979,376
------------ ------------
End of year $ 70,684,449 $ 63,398,141
============ ============

CHANGE IN SHARES
Shares sold 659,818 944,650
Shares issued on reinvestment of distributions 483,938 397,810
Shares redeemed (308,081) (596,248)
------------ ------------
Net increase 835,675 746,212

============ ============
</TABLE>
See Notes to Financial Statements.
35
<PAGE>
Financial Highlights

For a share outstanding throughout the period.
<TABLE>
<CAPTION>
Balanced Fund
-----------------------------------------------------------------
For the periods
-----------------------------------------------------------------
07/01/97 07/01/96 07/01/95 10/01/94
to to to to
12/31/97 06/30/97 06/30/96 06/30/95
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.07 $ 14.69 $ 13.96 $ 12.41
------------- ------------- ------------- -------------
Income from investment operations
Net investment income 0.16 0.38 0.43 0.24
Net realized and unrealized gain on
investments 0.39 2.78 1.27 1.59
------------- ------------- ------------- -------------
Total from investment operations 0.55 3.16 1.70 1.83
------------- ------------- ------------- -------------
Less distributions
From net investment income (0.17) (0.37) (0.43) (0.24)
From net realized gains (1.67) (1.41) (0.54) (0.04)
------------- ------------- ------------- -------------
Total distributions (1.84) (1.78) (0.97) (0.28)
------------- ------------- ------------- -------------
Net asset value, end of period $ 14.78 $ 16.07 $ 14.69 $ 13.96
============= ============= ============= =============
Total return 3.48%** 23.12% 12.56% 14.98%**
============= ============= ============= =============
Net assets at end of period (in 000's) $ 70,684 $ 63,398 $ 46,979 $ 38,836
============= ============= ============= =============
Ratio of expenses to average net assets
(net of expense reimbursements)(1) 1.07%* 1.26% 1.35% 1.33%*
============= ============= ============= =============
Ratio of net investment income to average
net assets 1.90%* 2.62% 2.98% 2.51%*
============= ============= ============= =============
Portfolio turnover rate 30.89% 91.90% 69.11% 54.02%
============= ============= ============= =============
</TABLE>
* Annualized

** Not Annualized

+ The Jurika & Voyles Balanced Fund commenced operations on March 9, 1992.

(1) The ratios of expenses to average net assets before expense reimbursements
was 1.31%, 1.49%, and 1.42% for the Balanced Fund for the periods ended
June 30, 1997, 1996, and 1995, respectively. For the period from July 1,
1997 to December 31, 1997, the annualized ratio of expenses to average net
assets was 1.31% for the Balanced Fund.

See Notes to Financial Statements.
36
<PAGE>
<TABLE>
<CAPTION>
Balanced Fund
--------------------------------------------
For the periods
--------------------------------------------
11/01/93 11/01/92 03/09/92+
to to to
09/30/94 10/31/93 10/31/92
-------- -------- --------
<S> <C> <C> <C>
Net asset value, beginning of period $ 12.82 $ 10.84 $ 10.00
------------- ------------- ------------
Income from investment operations
Net investment income 0.16 0.16 0.11
Net realized and unrealized gain on investments 0.05 1.98 0.83
------------- ------------- ------------
Total from investment operations 0.21 2.14 0.94
------------- ------------- ------------
Less distributions
From net investment income (0.18) (0.16) (0.10)
From net realized gains (0.44) -- --
------------- ------------- ------------
Total distributions (0.62) (0.16) (0.10)
------------- ------------- ------------
Net asset value, end of period $ 12.41 $ 12.82 $ 10.84
============= ============= ============
Total return 3.66%** 19.83% 14.67%**
============= ============= ============
Net assets at end of period (in 000's) $ 34,659 $ 20,931 $ 6,008
============= ============= ============
Ratio of expenses to average net assets
(net of expense reimbursements) 1.63%* 1.47% 1.50%*
============= ============= ============
Ratio of net investment income to average
net assets 1.77%* 1.51% 1.93%*
============= ============= ============
Portfolio turnover rate 60.90% 44.12% 20.00%
============= ============= ============
</TABLE>
* Annualized

** Not Annualized

+ The Jurika & Voyles Balanced Fund commenced operations on March 9, 1992.

See Notes to Financial Statements.
37
<PAGE>
<TABLE>
<CAPTION>
Mini-Cap Fund
-------------------------------------------------
For the periods
-------------------------------------------------
07/01/97 07/01/96 07/01/95 09/30/94+
to to to to
12/31/97 06/30/97 06/30/96 06/30/95
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 21.83 $ 18.39 $ 14.12 $ 10.00
-------- -------- ------- -------
Income from investment operations
Net investment income (loss) (0.08) (0.01) (0.02) 0.01
Net realized and unrealized gain on
investments 2.36 4.04 5.25 4.13
-------- -------- ------- -------
Total from investment operations 2.28 4.03 5.23 4.14
-------- -------- ------- -------
Less distributions
From net investment income -- -- -- (0.02)
From net realized gains (4.96) (0.59) (0.96) --
-------- -------- ------- -------
Total distributions (4.96) (0.59) (0.96) (0.02)
-------- -------- ------- -------
Net asset value, end of period $ $19.16 $ $21.83 $ 18.39 $ 14.12
======== ======== ======= =======
Total return 10.64%** 22.45% 38.46% 41.47%**
======== ======== ======= =======
Net assets at end of period (in 000's) $142,449 $123,053 $92,697 $10,397
======== ======== ======= =======
Ratio of expenses to average net assets (net of expense
reimbursements)(1) 1.50%* 1.50% 1.50% 1.50%*
======== ======== ======= =======

Ratio of net investment income (loss) to (0.58%)* (0.08%) (0.35%) 0.04%*
average net assets ======== ======== ======= =======
Portfolio turnover rate 104.41% 304.88% 214.71% 102.85%
======== ======== ======= =======
</TABLE>

* Annualized

** Not annualized

+ Fund commenced operations on September 30, 1994.

(1) The ratios of expenses to average net assets before expense reimbursements
and recoupments were 1.39%, 1.74%, and 4.99% for the Mini-Cap Fund for the
periods ended June 30, 1997, 1996, and 1995, respectively. For the period
from July 1, 1997 to December 31, 1997, the annualized ratio of expenses to
average net assets before expense recoupments was 1.48% for the Mini-Cap
Fund.

See Notes to Financial Statements.
38
<PAGE>
<TABLE>
<CAPTION>
Value+Growth Fund
------------------------------------------------------------------
For the periods
------------------------------------------------------------------
07/01/97 07/01/96 07/01/95 09/30/94+
to to to to
12/31/97 06/30/97 06/30/96 06/30/95
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.27 $ 13.69 $ 12.82 $ 10.00
------------- ------------- ------------- -------------
Income from investment operations
Net investment income (loss) (0.05) 0.10 0.11 0.05
Net realized and unrealized gain on
investments 0.70 4.03 1.40 2.79
------------- ------------- ------------- -------------
Total from investment operations 0.65 4.13 1.51 2.84
------------- ------------- ------------- -------------

Less distributions
From net investment income (0.04) (0.10) (0.13) (0.02)
From net realized gains (1.81) (1.45) (0.51)
------------- ------------- ------------- -------------
Total distributions (1.85) (1.55) (0.64) (0.02)
------------- ------------- ------------- -------------
Net asset value, end of period $ 15.07 $ 16.27 $ 13.69 $ 12.82
============= ============= ============= =============
Total return 3.76%** 32.38% 12.11% 28.43%**
============= ============= ============= =============
Net assets at end of period (in 000's) $ 48,034 $ 23,994 $ 21,256 $ 12,989
============= ============= ============= =============
Ratio of expenses to average net assets
(net of expense reimbursements)(1) 1.25%* 1.26% 1.35% 1.35%*
============= ============= ============= =============
Ratio of net investment income (loss) to
average net assets 0.80%* 0.45% 0.78% 1.18%*
============= ============= ============= =============
Portfolio turnover rate 36.18% 160.13% 101.05% 31.64%
============= ============= ============= =============
</TABLE>

* Annualized

** Not annualized

+ Fund commenced operations on September 30, 1994.

(1) 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. For the period from July
1, 1997 to December 31, 1997, the annualized ratio of expenses to average
net assets before expense reimbursements was 1.70% for the Value+Growth
Fund.
See Notes to Financial Statements.
39
<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
40
<PAGE>
Notes to Financial Statements-Continued

2. Significant Accounting Policies-continued

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.
41
<PAGE>
Notes to Financial Statements-Continued

2. Significant Accounting Policies-continued

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 statement 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.

Mini-Cap Fund Shares Amount
- ------------- ------ ------
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)
====== =======

Value+Growth Fund
- -----------------
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)
==== ======
42
<PAGE>
Notes to Financial Statements-Continued

3. Transactions in Shares of Beneficial Interest-continued

Balanced Fund Shares Amount
- ------------- ------ -----
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)
==== ======

4. Management Fees and Transaction 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
the following rates of average daily net assets: 0.85% for the Value+Growth
Fund, 0.70% for the Balanced Fund, and 1.00% for 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, 0.95% for the Balanced
Fund, and 1.50% for Mini-Cap Fund. Prior to September 9, 1997, the expense
limitation for the Balanced Fund was 1.25%. 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, 1997 amounted to $50,163, $469,893 and
$195,062, 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.
43
<PAGE>
Notes to Financial Statements-Continued

4. Management Fees and Transaction with Affiliates-continued

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 six-month period ended December 31, 1997, are as
follows:

Funds Purchases Sales
----- --------- -----
Mini-Cap Fund $146,411,640 $137,515,391
Value+Growth Fund 30,787,439 9,846,411
Balanced Fund 24,712,991 18,146,816

The total cost of securities and the aggregate gross unrealized appreciation and
depreciation for securities held by the Funds at December 31, 1997, based on
cost for federal income tax purposes, are as follows:

Gross Gross Net
Total Unrealized Unrealized Unrealized
Funds Tax Cost Appreciation Depreciation Appreciation
----- -------- ------------ ------------ ------------

Mini-Cap Fund $139,601,062 $14,481,823 $(8,592,326) $5,889,497
Value+Growth Fund 44,369,523 3,709,173 (1,229,458) 2,479,715
Balanced Fund 63,240,139 8,547,416 (1,708,062) 6,839,354

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 for the six-month period ended
December 31, 1997.
44
<PAGE>

Jurika & Voyles Fund Group

Jurika & Voyles Fund Group
1999 Harrison Street, Suite 700
Oakland, California 94612-3517
(800) JV-INVST
(800) 58-46878