<PAGE>
[LOGO]
Annual Report
Jurika & Voyles Fund Group
Mini-Cap Fund
Value+Growth Fund
Balanced Fund
June 30, 1998
<PAGE>
Table of Contents
<TABLE>
<S> <C>
.............................................................
Letter to Shareholders 1
.............................................................
Performance
..........................................................
Mini-Cap Fund 2
..........................................................
Value+Growth Fund 6
..........................................................
Balanced Fund 9
.............................................................
Schedule of Investments 13
.............................................................
Statements of Assets and Liabilities 29
.............................................................
Statements of Operations 30
.............................................................
Statements of Changes in Net Assets 31
.............................................................
Financial Highlights 34
.............................................................
Notes to Financial Statements 37
</TABLE>
DIRECTORY OF FUNDS' SERVICE PROVIDERS
Investment Adviser
Jurika & Voyles, L.P., 1999 Harrison Street, Suite 700, Oakland, CA 94612
Distributor
First Fund Distributors, Inc., 4455 E. Camelback Road, Suite 261-E, Phoenix, AZ
85018
Administrator
Investment Company Administration Corp., 2020 E. Financial Way, Suite 100,
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 an investment review and outlook, along with a summary of
key financial and performance information, for each Fund of the Jurika & Voyles
Fund Group for the fiscal year ended June 30, 1998.
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,
[SIG] [SIG]
William K. Jurika Glenn C. Voyles
Jurika & Voyles, L.P. Jurika & Voyles, L.P.
IMPORTANT NOTICE
In recent months, your mutual funds have experienced a dramatic increase in
shareholder transactions by short-term investors, often known as "market
timers." Their large purchases and frequent redemptions increase expenses, cause
the unnecessary recognition of gains, and disrupt the long-term strategies of
your portfolio managers. Therefore, we believe that market timers are
detrimental to the value of your shares as long-term investors.
For this reason, the Jurika & Voyles Fund Group expects to implement, effective
November 1, 1998, a redemption fee equal to 1% of the proceeds from any
redempton or exchange of shares held fewer than 30 days. This fee will not apply
to any currently outstanding shares, or to any redemptions or exchanges out of
the SSgA Money Market Fund.
1
<PAGE>
PERFORMANCE
-------------------------------------------------
Mini-Cap Fund
REVIEW
For the 12-month period ending June 30, 1998, small cap stocks significantly
underperformed large cap stocks. The Russell 2000 Index returned 16.5% versus
30.2% for the S&P 500 Index. It has been a difficult environment for our style
of investing, generally because larger capitalization stocks outperformed lower
capitalizations and stocks with higher price earnings ratios outperformed more
moderately priced stocks. This was particularly true in the second quarter of
1998, when each capitalization range, whether large, mid or small cap, was
driven by the largest caps with the highest P/E's.
Prior to the Frank Russell Company's annual index reconstitution on June 30,
1998, the largest capitalization companies in the Russell 2000 exceeded $2
billion. Concept stocks, with little near-term prospects for earnings (such as
Excite), dominated the list. The majority of these companies were young firms
trading on the speculation of future profits, rather than the reality of the
present.
As an example, before the re-balancing of the Russell 2000, two of the largest
companies in the index (YAHOO and AMAZON) were not in existence 5 years ago yet
showed astonishing appreciation. Numerous other young technology companies
showed similar returns. These companies may look terrific right now, but
technological changes take place rapidly and historical precedent would indicate
that only a very few of these companies will be long-term survivors.
Russel 3000 Index Second Quarter 1998 Returns
BY CAPITALIZATION AND P/E RANGES: OVERALL RETURN 1.82%
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Capitalization Range 98Q2 Total Return Forecast P/E
<S> <C> <C>
Top 200 1.2% 0-20
Top 200 2.5% 20-30
Top 200 12.6% over 30
Medium 800 -4.8% 0-20
Medium 800 -1.1% 20-30
Medium 800 1.4% over 30
Small 2000 -4.9% 0-20
Small 2000 -7.1% 20-30
Small 2000 -6.5% over 30
</TABLE>
2
<PAGE>
PERFORMANCE
-------------------------------------------------
Mini-Cap Fund
Our risk-averse approach precludes us from investing in high price to earnings
multiple stocks and results in underperformance in markets driven by highly
priced stocks. For the fiscal year ended June 30, 1998, our performance was
10.3% versus 16.5% for the Russell 2000 and 15.5% for the Lipper Small Cap
Index.
Moving forward, we believe the disparity in valuations between large and small
cap stocks will narrow. As of June 30, 1998, our most overweighted sectors
relative to the Russell 2000 are Technology (17.6% vs. 11.7%), Other Energy
(9.0% versus 3.3%) and Producer Durables (15.9% versus 7.4%). Many technology
companies (particularly those that relate to electronics), energy and industrial
companies have been affected by the Asian crises and their stock prices have
been severely impacted. We believe U.S. technology, energy service and
industrial companies are the best in the world at what they do. While earnings
will be impacted over the next year because of the economic chaos in Asia, we
believe these stock prices more than discount this event. Many of these
companies now sell below their replacement cost and at very cheap prices
relative to potential earnings.
As an example, in the energy sector, global demand has weakened due to the
economic slow down in Asia. Eventually, this will reverse and world demand for
energy will continue to exceed reserve resources. In addition, a large part of
the energy supply for Western economies originates from some of the most
unstable regions of the world. We can easily imagine a real scramble to develop
energy reserves a few years from now. In the meantime, we can invest in energy
service companies at fire sale prices.
During the past 12 months, there have been some changes in the personnel
managing the Mini-Cap Fund. On October 1, 1997, the management of the Fund
transitioned from a single individual to a team of research analysts led by Paul
Meeks, CFA and Guy Elliffe, CFA. Paul Meeks did an outstanding job, but departed
on May 8, 1998 to pursue another opportunity. Bill Jurika replaced Paul Meeks
and works with Guy Elliffe (Jurika & Voyles' Research Director) and the analyst
team to manage the Fund's assets. While the Fund's portfolio manager has
changed, our investment style and philosophy have not. We continue to value our
in-house, fundamental research, searching for undervalued companies with higher
than market average earnings growth rates.
In the fiscal year just ended, we reduced portfolio turnover to 169% from a rate
of 305% in the prior year, and the rate of
3
<PAGE>
PERFORMANCE
-------------------------------------------------
Mini-Cap Fund
turnover continues to decline. We have also reduced the number of positions in
the portfolio from 123 to 46. We feel that these changes in the Fund's
composition (E.G., reducing the number of holdings and turnover) are in the best
long-term interests of shareholders. In order to be successful in the long run,
we must invest in fundamental values, with purpose, patience and discipline.
Larger positions and lower turnover will maximize the impact of our long-term
investment bets and minimize short-term Capital Gains taxes. This occasionally
means that in the short term, we may lag an index, as we have in the last year,
but we strongly believe this approach entails less risk and better returns in
the long run.
Our outlook for the remainder of 1998 is quite positive. After several years of
underperforming their larger capitalization brethren, it is likely that small
capitalization stocks will outperform moving forward. Small companies should be
able to grow their profits at a faster rate than many of the Blue Chips, and
tend to be more insulated from Asian turmoil.
We thank you for your continued confidence in us. Please call us with any
questions, comments or requests for further data.
4
<PAGE>
PERFORMANCE
-------------------------------------------------
Mini-Cap Fund
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Lipper Analytical Services,
Jurika & Voyles Inc. Russell 2000
Mini-Cap Fund Small Company Fund Index Index
<S> <C> <C> <C>
9/30/94 $10,000.00 $10,000.00 $10,000.00
10/31/94 10,410.00 10,167.00 9,960.00
11/30/94 10,400.00 9,764.39 9,557.42
12/31/94 10,650.00 9,985.06 9,813.55
1/31/95 10,409.55 9,866.24 9,690.04
2/28/95 11,211.05 10,270.76 10,093.03
3/31/95 11,832.22 10,544.98 10,265.63
4/30/95 12,814.06 10,692.61 10,493.65
5/31/95 13,244.87 10,859.42 10,674.16
6/30/95 14,146.57 11,521.84 11,227.98
7/31/95 15,358.84 12,389.44 11,874.83
8/31/95 15,278.69 12,607.49 12,120.66
9/30/95 15,509.13 12,963.02 12,337.60
10/31/95 15,148.45 12,562.47 11,786.15
11/30/95 16,070.18 12,995.67 12,280.99
12/31/95 16,210.44 13,142.73 12,605.20
1/31/96 15,816.36 13,080.95 12,591.34
2/29/96 16,689.73 13,608.81 12,984.19
3/31/96 17,690.90 13,884.39 13,249.06
4/30/96 19,682.59 14,992.36 13,957.89
5/31/96 20,502.69 15,614.54 14,507.83
6/30/96 19,586.73 14,985.28 13,911.56
7/31/96 18,574.91 13,530.21 12,697.08
8/31/96 19,384.37 14,350.14 13,434.78
9/30/96 19,948.86 15,173.84 13,960.08
10/31/96 20,034.06 14,709.52 13,745.09
11/30/96 21,006.16 14,976.76 14,311.39
12/31/96 21,423.66 16,029.67 14,686.35
1/31/97 21,896.07 15,372.35 14,980.08
2/28/97 20,929.26 14,491.51 14,617.56
3/31/97 20,270.07 13,613.33 13,927.61
4/30/97 20,226.12 13,500.34 13,966.61
5/31/97 22,456.38 15,190.58 15,519.69
6/30/97 23,983.50 15,936.44 16,185.49
7/31/97 26,005.01 16,855.97 16,938.11
8/31/97 27,118.02 17,049.81 17,326.00
9/30/97 29,319.66 18,367.76 18,594.26
10/31/97 27,709.86 17,442.03 17,777.97
11/30/97 27,662.51 17,115.86 17,652.41
12/31/97 26,536.65 17,292.16 17,972.51
1/31/98 25,704.68 16,960.15 17,687.56
2/28/98 27,158.88 18,325.44 18,996.44
3/31/98 28,668.48 19,144.58 19,779.09
4/30/98 29,319.41 19,948.66 19,887.87
5/31/98 26,992.69 18,845.50 18,816.71
6/30/98 26,452.56 18,403.00 18,851.00
Annualized One Year
Total Returns for Period Ending June 30, 1998 Since Inception Total Return
Jurika & Voyles Mini Cap Fund 29.61% 10.29%
Lipper Analytical Services, Inc. Small Company Fund
Index 17.66% 15.52%
Russell 2000 Index 18.42% 16.50%
</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 through June 30, 1998. 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
REVIEW
Since 1995, the financial markets have experienced nirvana; above-average
economic growth and corporate profitability with relatively non-existent
inflation. Over the past three calendar years, the S&P 500 produced an
annualized return of 31.2%; its best three-year performance yet. In reality, a
large share of the return was driven by the very largest companies in the index,
which are selling at all time high valuation levels. Investors are focusing on
quality at any price. Valuation no longer seems to count. Beyond the realm of
Mega-companies selling at "mega" valuation, the broader markets have not enjoyed
the same magnitude of success. For the same period, the Russell Mid-cap Index
generated an annualized return of 27.3% and the Russell 2000 Index (small-cap)
22.3%.
Although we can make sense of what has happened, it is harder to see the
sensibleness. In our experience, the pursuit of quality without value, or on the
other hand, value without quality can be a dangerous one. At Jurika & Voyles, we
look for quality and value, or, to put it another way, making sensible
investments at sensible prices. Although this approach has not been as popular
in recent years, the outperformance of the quality at any price approach has
been driven more by the desires of the investor than the sensibleness of
investment.
With the Asian economic crisis and its potential impact on U.S. economic growth
and corporate profitability, investors' affinity towards large, stable-growth
companies has only magnified. In the first half of 1998, the return differential
between large-cap and small-cap stocks was the largest seen since 1990 and
nearly approached the level of the "nifty fifty" era of the early seventies.
Some of the large-cap, growth stocks now sell at P/E multiples that exceed 50
times their trailing earnings with expected growth rates of 20-25%. At the same
time, the majority of stocks in the market are down, on average, 25% from their
52-week highs and sell at P/E multiples much closer to their expected growth
rates.
Our value-oriented bias has kept the Value + Growth Fund out of the high
performance part of the market. For the trailing 12-months, the Value + Growth
Fund returned 11.5%, vs. 30.2% on the S&P 500 and 28.3% on the Lipper Growth
Fund Index.
How much longer will these distortions in the equity markets last? We don't
know, but we think the days are numbered. In the meantime we will continue to
6
<PAGE>
PERFORMANCE
-------------------------------------------------
Value+Growth Fund
manage the Fund with a philosophy of taking prudent risk to achieve prudent
returns.
The Fund's portfolio maintains an emphasis in technology, financial services,
industrial products and services and healthcare stocks. However, the composition
of our holdings as well as the percentage of the portfolio invested in each
sector has changed throughout the past few months.
Technology stocks (including communications) and financial services (including
insurance) represent 19% and 20% of the portfolio, respectively. Because of
Asian concerns, we have reduced some of our more cyclical industrial stocks, and
industrials as a whole (including basic industries) now represent 14% of the
portfolio. We also reduced our healthcare services' exposure by eliminating a
number of the HMO companies we owned. Finally, we increased our holdings in the
energy sector, adding to existing companies as well as initiating positions in a
few new stocks. With oil prices down near 12-year lows, many of these stocks
offer very attractive long-term values.
OUTLOOK
We think our portfolio, which emphasizes quality subject to reasonable
valuation, looks extremely attractive. We like the companies in which we are
invested, their prospects for the future, and the prices that we have paid
relative to their prospects. We are finding some exceptional values in
technology and in the mid and small capitalization sectors. The P/E multiple on
the Value + Growth Fund is currently 18.8x with an expected three-year growth
rate of 15%. This compares to the S&P 500 with a P/E multiple of 23.2x and an
expected growth rate of 7%.
We feel that something has to give in this market. We would not be surprised to
see a correction as the market fully appreciates slowing rates of earnings
growth coupled with extreme valuation discrepancies, but we have said this
before. Should a correction occur, we feel that the Fund is well positioned. We
own good businesses at reasonable prices where investors have generally low
expectations. This should offer protection on the downside if the market
declines further and significant opportunities on the upside when the economy
starts to turn positive.
7
<PAGE>
PERFORMANCE
-------------------------------------------------
Value+Growth Fund
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Lipper Analytical Services,
Jurika & Voyles Inc. S&P 500
Value + Growth Fund Growth Fund Index Index
<S> <C> <C> <C>
9/30/94 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
1/31/95 10,468.84 9,924.12 10,257.60
2/28/95 10,868.58 10,290.97 10,657.64
3/31/95 11,210.17 10,602.78 10,972.04
4/30/95 11,751.15 10,902.97 11,294.62
5/31/95 12,161.98 11,232.84 11,746.41
6/30/95 12,843.11 11,737.26 12,018.92
7/31/95 13,474.25 12,304.17 12,417.95
8/31/95 13,554.39 12,433.36 12,449.00
9/30/95 13,754.75 12,802.53 12,974.34
10/31/95 13,103.58 12,632.35 12,927.64
11/30/95 13,844.91 13,059.33 13,495.16
12/31/95 13,525.34 13,114.18 13,755.62
1/31/96 13,430.66 13,431.54 14,223.81
2/29/96 13,756.72 13,642.42 14,355.58
3/31/96 13,946.03 13,705.17 14,493.40
4/30/96 14,713.80 14,049.17 14,706.45
5/31/96 14,997.77 14,297.84 15,084.41
6/30/96 14,398.28 14,157.72 15,141.73
7/31/96 13,409.65 13,391.79 14,472.46
8/31/96 14,145.86 13,789.53 14,777.83
9/30/96 14,829.49 14,560.36 15,609.82
10/31/96 15,134.50 14,770.03 16,040.65
11/30/96 15,262.76 15,703.49 17,253.33
12/31/96 16,272.08 15,406.70 16,911.71
1/31/97 16,939.81 16,215.55 17,968.69
2/28/97 17,080.39 16,090.69 16,108.85
3/31/97 18,389.21 15,353.74 17,364.58
4/30/97 18,740.55 16,029.30 16,401.24
5/31/97 18,333.89 17,138.53 18,521.88
6/30/97 19,060.22 17,779.51 20,398.41
7/31/97 20,407.44 19,253.43 22,022.12
8/30/97 19,785.38 18,541.05 20,788.88
9/30/97 20,993.35 19,601.60 21,928.11
10/31/97 19,759.95 18,968.47 21,195.71
11/30/97 19,683.65 19,404.75 22,177.06
12/30/97 19,776.48 19,732.69 22,559.52
1/31/98 19,369.66 19,864.90 22,808.92
2/28/98 21,023.17 21,265.37 24,453.44
3/31/98 21,876.17 22,175.53 25,705.46
4/30/98 22,282.98 22,412.81 25,964.06
5/31/98 21,088.78 21,861.45 25,517.48
6/30/98 21,259.38 22,805.87 26,554.00
Annualized One Year
Total Returns for Period Ending June 30, 1998 Since Inception Total Return
Jurika & Voyles Value + Growth Fund 22.27% 11.54%
Lipper Analytical Services, Inc. Growth Fund
Index 24.58% 28.27%
S&P 500 Index 29.74% 30.15%
</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 through June 30, 1998. 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
REVIEW
Since 1995, the financial markets have experienced nirvana; above-average
economic growth and corporate profitability with relatively non-existent
inflation. Over the past three calendar years, the S&P 500 produced an
annualized return of 31.2%; its best three-year performance yet. In reality, a
large share of this return was driven by the very largest companies in the
index, which are selling at all time high valuation levels. Investors are
focusing on quality at any price. Valuation no longer seems to count. Beyond the
realm of Mega-companies selling at "mega" valuations, the broader markets have
not enjoyed the same magnitude of success. For the same period, the Russell
Mid-cap Index generated an annualized return of 27.3% and the Russell 2000 Index
(small-cap) 22.3%.
Although we can make sense of what has happened, it is harder to see the
sensibleness. In our experience, the pursuit of quality without value, or on the
other hand, value without quality can be a dangerous one. At Jurika & Voyles, we
look for quality and value, or, to put it another way, making sensible
investments at sensible prices. Although this approach has not been as popular
in recent years, the outperformance of the quality at any price approach has
been driven more by the desires of the investor than the sensibleness of
investment.
With the Asian economic crisis and its potential impact on U.S. economic growth
and corporate profitability, investors' affinity towards large, stable-growth
companies has only magnified. In the first half of 1998, the return differential
between large-cap and small-cap stocks was the largest seen since 1990 and
nearly approached the level of the "nifty fifty" era of the early seventies.
Some of the large-cap, growth stocks now sell at P/E multiples that exceed 50
times their trailing earnings with expected growth rates of 20-25%. At the same
time, the majority of stocks in the market are down, on average, 25% from their
52-week highs and sell at P/E multiples much closer to their expected growth
rates.
Our value-oriented bias has kept the Balanced Fund out of the high performance
part of the market, relative to other balanced funds. Our allocation to equity
securities is close to our historical low, representing only 58% of the
portfolio as of June 30, 1998. For the trailing 12-months, the Balanced Fund
returned 9.0%, vs. 18.4% for the Lipper Balanced Fund Index.
9
<PAGE>
PERFORMANCE
-------------------------------------------------
Balanced Fund
How much longer will these distortions in the equity markets last? We don't
know, but we think the days are numbered. In the meantime, we will continue to
manage the Fund with a philosophy of taking prudent risk to achieve prudent
returns.
The Fund's portfolio maintains an emphasis in technology, financial services,
industrial products and services and healthcare stocks. However, the composition
of our holdings as well as the percentage of the portfolio invested in each
sector has changed throughout the past few months.
Technology stocks (including communications) and financial services (including
insurance) represent 11% and 12% of the portfolio, respectively. Because of the
Asian concerns, we have reduced some of our more cyclical industrial stocks, and
industrials as a whole (including basic industries) now represent 9% of the
portfolio. We also reduced our healthcare services exposure by eliminating a
number of the HMO companies we owned. Finally, we increased our holdings in the
energy sector, adding to existing companies as well as initiating positions in a
few new stocks. With oil prices down near 12-year lows, many of these stocks
offer very attractive long-term values.
The investment performance of our fixed income portion of the portfolio has been
strongly influenced by the "flight to quality" effect that the Asian economic
difficulties have fostered. Corporate bond spreads are at their widest levels in
five years as earnings concerns dampen investors' comfort with non-government
debt issues. Since our focus continues to be on strong domestic credits with
discernable cash flow capacity, we have used this opportunity to selectively add
to our corporate holdings. After declining to record lows during the latter half
of 1997, interest rates have been holding steady during the first half of 1998,
and are expected to remain so for the balance of the year.
In order to optimize the positioning of bonds in the portfolio and take
advantage of the changes in the market, we have shortened the maturities of our
corporates while we have been increasing the sector market weighting. The impact
of our current strategy is to provide a high level of yield stability while
moderating the interest rate risks to the portfolio, and thus reducing the risk
profile of the entire fund.
OUTLOOK
We think our portfolio, which emphasizes quality subject to reasonable
valuation, looks
10
<PAGE>
PERFORMANCE
-------------------------------------------------
Balanced Fund
extremely attractive. We like the companies in which we are invested, their
prospects for the future, and the prices that we have paid relative to their
prospects. We are finding some exceptional values in technology and in the mid
and small capitalization sectors. The P/E multiple on the Balanced Fund is
currently 18.8x with an expected three-year growth rate of 15%. This compares to
the S&P 500 with a P/E multiple of 23.2x and an expected growth rate of 7%.
We feel that something has to give in this market. We would not be surprised to
see a correction as the market fully appreciates slowing rates of earnings
growth coupled with extreme valuation discrepancies, but we have said this
before. Should a correction occur, we feel that the Fund is well positioned. We
own good businesses at reasonable prices where investors have generally low
expectations. This should offer protection on the downside if the market
declines further and significant opportunities on the upside when the economy
starts to turn positive.
11
<PAGE>
PERFORMANCE
-------------------------------------------------
Balanced Fund
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Jurika & Voyles Lipper Balanced 60% S&P 500/40% Lehman
Bros. Gov't/Corp. Int. Bond
Balanced Fund Fund Index Index
<S> <C> <C> <C>
3/9/92 $10,000.00 $10,000.00 $10,000.00
3/31/92 9,940.00 10,000.00 9,994.00
4/30/92 10,100.16 10,108.00 10,205.47
5/31/92 10,170.23 10,239.40 10,298.75
6/30/92 10,162.22 10,160.56 10,267.65
7/31/92 10,544.19 10,459.28 10,601.35
8/31/92 10,493.93 10,362.01 10,513.36
9/30/92 10,720.09 10,481.17 10,644.35
10/31/92 10,942.16 10,482.22 10,610.72
11/30/92 11,315.65 10,721.22 10,811.05
12/31/92 11,546.81 10,874.53 10,948.78
1/31/93 11,850.67 11,020.25 11,089.36
2/28/93 11,789.90 11,156.90 11,249.94
3/30/93 12,118.07 11,386.73 11,410.36
4/30/93 11,985.91 11,299.05 11,281.19
5/31/93 12,107.91 11,496.79 11,452.67
6/30/93 12,332.58 11,618.65 11,544.52
7/31/93 12,536.42 11,665.13 11,527.90
8/31/93 12,862.57 12,017.41 11,863.36
9/30/93 13,060.30 12,043.85 11,828.48
10/31/93 13,111.44 12,167.90 11,988.16
11/30/93 13,009.17 11,973.22 11,892.98
12/31/93 13,512.35 12,174.37 12,001.20
1/31/94 13,813.78 12,493.34 12,299.31
2/28/94 13,792.99 12,248.47 12,026.51
3/30/94 13,330.45 11,803.85 11,632.53
4/30/94 13,372.21 11,829.82 11,690.22
5/31/94 13,340.89 11,920.91 11,808.53
6/30/94 13,215.63 11,713.48 11,635.42
7/31/94 13,383.58 11,978.21 11,931.42
8/31/94 13,719.48 12,277.66 12,239.73
9/30/94 13,544.18 12,056.66 12,015.50
10/31/94 13,304.07 12,094.04 12,177.22
11/30/94 12,933.00 11,815.88 11,889.36
12/31/94 13,215.67 11,929.31 12,011.58
1/31/95 13,270.83 12,077.23 12,279.44
2/28/95 13,822.40 12,428.68 12,668.45
3/30/95 14,142.31 12,648.67 12,921.56
4/30/95 14,530.53 12,886.46 13,213.07
5/31/95 15,140.59 13,298.83 13,689.80
6/30/95 15,573.18 13,534.22 13,917.05
7/31/95 16,019.40 13,819.79 14,194.84
8/31/95 16,309.45 13,927.58 14,267.80
9/30/95 16,480.13 14,260.45 14,670.15
10/31/95 15,961.25 14,224.80 14,703.60
11/30/95 16,513.97 14,667.19 15,167.94
12/31/95 16,573.75 14,897.47 15,407.29
1/31/96 16,597.31 15,165.62 15,774.60
2/29/96 16,927.14 15,173.21 15,788.80
3/30/96 17,049.65 15,230.86 15,847.53
4/30/96 17,642.47 15,331.39 15,965.12
5/31/96 17,891.46 15,487.77 16,206.19
6/30/96 17,528.65 15,538.88 16,311.86
7/31/96 16,860.44 15,139.53 15,898.84
8/31/96 17,480.92 15,378.73 16,105.21
9/30/96 17,966.57 15,947.75 16,738.79
10/31/96 18,302.84 16,285.84 17,134.49
11/30/96 19,271.50 17,044.76 18,002.18
12/31/96 19,139.60 16,835.11 17,742.23
1/31/97 19,802.78 17,350.26 18,435.24
2/28/97 20,068.06 17,414.46 18,535.53
3/31/97 19,536.18 16,907.70 18,027.28
4/30/97 20,043.96 17,416.62 18,757.39
5/31/97 20,992.71 18,128.96 19,505.06
6/30/97 21,580.67 18,718.15 20,101.52
7/31/97 22,548.91 19,783.21 21,224.80
8/31/97 22,172.13 19,156.09 20,469.19
9/30/97 22,996.70 19,920.41 21,796.20
10/31/97 22,281.70 19,557.86
11/30/97 22,237.92 19,915.77
12/31/97 22,331.31 20,205.55
1/31/98 21,969.45 20,345.98 22,055.18
2/28/98 23,085.26 21,153.72 23,002.23
3/31/98 23,682.37 21,801.02 23,738.30
4/30/98 23,986.18 21,951.45 23,929.06
5/31/98 23,317.79 21,729.74 23,751.99
6/30/98 23,513.60 22,159.00 24,391.67
Annualized One Year
Total Returns for Period Ending June 30, 1998 Since Inception Total Return
Jurika & Voyles Balanced Fund 14.50% 8.96%
Lipper Balanced Fund Index 13.57% 18.38%
60% S&P 500/40% Lehman Bros. Gov't/Corp. Int. Bond Index 15.17% 21.34%
</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 Intermediate Bond Index, and Lipper
Balanced Fund Index from the inception of the Fund on March 9, 1992 through June
30, 1998. 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 Intermediate Bond Index is an unmanaged
market-weighted index consisting of 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 one to ten years. It is generally regarded as representative of
the market for intermediate-term domestic bonds.
Lipper Balanced Fund Index is an unmanaged, net asset value weighted index of 30
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.
12
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
----------------------------------------------------------
Mini-Cap Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- ---------- ------------
<S> <C> <C>
COMMON STOCKS - 89.36%
BASIC INDUSTRIES
Chemicals - 3.60%
OM Group, Inc........................ 40,000 $ 1,650,000
R.P.M., Inc.......................... 95,300 1,620,100
------------
3,270,100
------------
COMMUNICATIONS
Communication Equipment - 2.68%
ECI Telecom, Limited................. 64,200 2,431,575
------------
CONSUMER CYCLICALS
Retail: Apparel - 4.44%
*Gerber Childrenswear, Inc........... 79,800 1,231,913
*Quiksilver, Inc..................... 70,400 1,403,600
St. John Knits, Inc.................. 36,200 1,398,225
------------
4,033,738
------------
Retail: Specialty - 0.97%
*Cost Plus, Inc...................... 29,500 877,625
------------
TOTAL CONSUMER CYCLICALS......................... 4,911,363
------------
CONSUMER SERVICES
Entertainment - 3.84%
*GTECH Holdings Corp................. 103,700 3,493,394
------------
Hotel/Motel - 1.43%
*Sun International Hotels Limited.... 28,600 1,301,300
------------
TOTAL CONSUMER SERVICES.......................... 4,794,694
------------
CONSUMER STAPLES
Cosmetics - 1.74%
*Helen of Troy, Limited.............. 71,800 1,579,600
------------
Food - 0.37%
Hormel Foods Corp.................... 9,700 335,256
------------
TOTAL CONSUMER STAPLES........................... 1,914,856
------------
ENERGY
Oil: Integrated Domestic - 1.76%
Snyder Oil Corp...................... 80,000 1,595,000
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
----------------------------------------------------------
Mini-Cap Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- ---------- ------------
<S> <C> <C>
Oil & Gas Services - 5.80%
*Mitcham Industries, Inc............. 60,400 $ 705,925
*Pride International, Inc............ 120,800 2,046,050
*Veritas DGC, Inc.................... 50,400 2,516,850
------------
5,268,825
------------
Natural Gas - 1.43%
K. N. Energy, Inc.................... 24,000 1,300,500
------------
TOTAL ENERGY..................................... 8,164,325
------------
FINANCIAL
Banks: Savings & Loan - 4.53%
MAF Bancorp, Inc..................... 62,500 2,273,438
*Quaker City Bancorp, Inc............ 80,000 1,840,000
------------
4,113,438
------------
Miscellaneous Finance - 1.27%
Waddell & Reed Financial, Inc........ 48,400 1,158,575
------------
TOTAL FINANCIAL.................................. 5,272,013
------------
HEALTHCARE PRODUCTS
Drugs - 1.59%
*Biovail Corp........................ 20,000 640,000
*Dal Tile International, Inc......... 82,200 806,588
------------
1,446,588
------------
Medical Products - 1.25%
*Atrix Labs, Inc..................... 84,900 1,135,537
------------
TOTAL HEALTHCARE PRODUCTS........................ 2,582,125
------------
HEALTHCARE SERVICES
HMOs - 1.76%
*Medpartners, Inc.................... 200,000 1,600,000
------------
INDUSTRIAL PRODUCTS
Aerospace/Defense - 2.92%
*Doncasters Plc...................... 95,400 2,653,313
------------
Electronics Equipment - 3.10%
General Cable Corp................... 97,500 2,815,312
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
----------------------------------------------------------
Mini-Cap Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- ---------- ------------
<S> <C> <C>
Electronics Instruments - 1.48%
*General Scanning, Inc............... 150,500 $ 1,345,094
------------
Machinery - 1.55%
*Gardner Denver Machinery, Inc....... 51,000 1,408,875
------------
TOTAL INDUSTRIAL PRODUCTS........................ 8,222,594
------------
INDUSTRIAL SERVICES
Construction - 1.11%
Granite Construction, Inc............ 33,000 1,010,625
------------
Special Services - 3.76%
*Bisys Group, Inc.................... 40,900 1,676,900
Unifirst Corp........................ 69,700 1,742,500
------------
3,419,400
------------
TOTAL INDUSTRIAL SERVICES........................ 4,430,025
------------
INSURANCE
Life Insurance - 3.16%
Amerus Life Holdings, Inc............ 88,756 2,873,475
------------
Property/Casualty Insurance - 6.42%
ESG Re Limited....................... 73,600 1,591,600
Fremont General Corp................. 50,700 2,747,306
HCC Insurance Holdings, Inc.......... 67,800 1,491,600
------------
5,830,506
------------
TOTAL INSURANCE.................................. 8,703,981
------------
REAL ESTATE INVESTMENT TRUSTS - 5.69%
Cabot Industrial Trust............... 31,800 679,725
Capstone Capital Corp................ 39,200 901,600
Glenborough Realty Trust, Inc........ 23,000 606,625
Golf Trust of America, Inc........... 50,000 1,718,750
Post Properties, Inc................. 32,900 1,266,650
------------
5,173,350
------------
TECHNOLOGY
Hardware & Peripherals - 10.23%
*Flextronics International........... 65,400 2,844,900
*Sanmina Corp........................ 53,000 2,298,875
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
----------------------------------------------------------
Mini-Cap Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- ---------- ------------
<S> <C> <C>
Hardware & Peripherals - 10.23%--Continued
*Zebra Technologies Corp............. 97,200 $ 4,155,300
------------
9,299,075
------------
Software - 7.32%
*Symantec Corp....................... 102,300 2,672,587
*Synopsys, Inc....................... 87,000 3,980,250
------------
6,652,837
------------
TOTAL TECHNOLOGY................................. 15,951,912
------------
TRANSPORTATION
Railroad - 2.63%
*Genesee & Wyoming, Inc.............. 125,900 2,392,100
------------
UTILITIES
Utility Service Providers - 1.53%
Montana Power Co..................... 40,000 1,390,000
------------
TOTAL COMMON STOCKS (Cost $75,258,526)........... 81,205,013
------------
<CAPTION>
Par
Value
----------
<S> <C> <C>
REPURCHASE AGREEMENT - 7.86%
State Street Bank & Trust Co.
$7,146,000 at 5.00% (Agreement dated
June 30, 1998; to be repurchased at
$7,146,993 on 7/01/98;
collateralized by U.S. Treasury
Notes due 7/31/01) (Value
$7,482,808) (Cost $7,146,000)....... $7,146,000 7,146,000
------------
TOTAL INVESTMENTS - 97.22% (Cost $82,404,526).... 88,351,013
------------
Cash and Other Assets, Net of Liabilities -
2.78%........................................... 2,519,290
------------
NET ASSETS - 100.00%............................... $ 90,870,303
------------
------------
</TABLE>
* INDICATES NON-INCOME PRODUCING SECURITY.
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
----------------------------------------------------------
Value+Growth Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- ---------- -----------
<S> <C> <C>
COMMON STOCKS - 97.27%
BASIC INDUSTRIES
Aluminum - 0.94%
Reynolds Metals Co................... 8,000 $ 447,500
-----------
Building Materials - 1.96%
*American Standard Co., Inc.......... 20,800 929,500
-----------
Chemicals - 1.28%
OM Group, Inc........................ 14,750 608,438
-----------
TOTAL BASIC INDUSTRIES........................... 1,985,438
-----------
COMMUNICATIONS
Telecommunications Equipment - 5.38%
ECI Telecom, Limited................. 29,800 1,128,675
*3Com Corp........................... 46,350 1,422,366
-----------
2,551,041
-----------
Wireless Service - 1.96%
SBC Communications, Inc.............. 23,200 928,000
-----------
TOTAL COMMUNICATIONS............................. 3,479,041
-----------
CONSUMER CYCLICALS
Auto Parts - 1.24%
Pep Boys Manny Moe & Jack............ 31,000 587,063
-----------
Retail - 2.48%
Dayton Hudson Corp................... 9,000 436,500
*Federated Department Stores......... 13,700 737,231
-----------
1,173,731
-----------
Retail: Food - 3.20%
American Stores Co................... 50,200 1,214,213
Hannaford Brothers Co................ 6,900 303,600
-----------
1,517,813
-----------
Retail: Specialty - 1.40%
Circuit City Stores, Inc............. 14,200 665,625
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
----------------------------------------------------------
Value+Growth Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- ---------- -----------
<S> <C> <C>
Toys - 1.53%
Mattel, Inc.......................... 17,100 $ 723,544
-----------
TOTAL CONSUMER CYCLICALS......................... 4,667,776
-----------
CONSUMER SERVICES
Entertainment - 1.63%
*GTECH Holdings Corp................. 13,600 458,150
*Sabre Group Holdings, Inc........... 8,300 315,400
-----------
773,550
-----------
Hotel/Motel - 1.06%
Hilton Hotels Corp................... 17,700 504,450
-----------
Publishing - 1.19%
McGraw-Hill Companies, Inc........... 6,900 562,781
-----------
TOTAL CONSUMER SERVICES.......................... 1,840,781
-----------
ENERGY
Natural Gas - 3.96%
Enron Corp........................... 15,000 810,937
K.N. Energy, Inc..................... 19,700 1,067,494
-----------
1,878,431
-----------
Oil and Gas Services - 2.09%
Santa Fe International Corp.......... 19,700 595,925
*EVI Weatherford, Inc................ 10,592 393,228
-----------
989,153
-----------
Oil: Integrated Domestic - 2.68%
Ultramar Diamond Shamrock............ 17,200 542,875
Vastar Resources, Inc................ 16,600 725,213
-----------
1,268,088
-----------
Oil: Integrated International - 1.64%
Texaco, Inc.......................... 13,000 775,938
-----------
TOTAL ENERGY..................................... 4,911,610
-----------
FINANCIAL
Banks: Money Center - 7.25%
Chase Manhattan Corp................. 23,400 1,766,700
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
----------------------------------------------------------
Value+Growth Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- ---------- -----------
<S> <C> <C>
Banks: Money Center - 7.25%--Continued
Citicorp............................. 11,200 $ 1,671,600
-----------
3,438,300
-----------
Banks: Regional - 2.86%
First Union Corp..................... 13,700 798,025
Fleet Financial Group, Inc........... 6,700 559,450
-----------
1,357,475
-----------
Banks: Savings & Loan - 2.43%
Washington Mutual, Inc............... 26,550 1,153,266
-----------
Miscellaneous Finance - 1.17%
CIT Group, Inc....................... 14,800 555,000
-----------
TOTAL FINANCIAL.................................. 6,504,041
-----------
HEALTHCARE PRODUCTS
Drugs - 1.30%
*Biogen, Inc......................... 12,600 617,400
-----------
Medical Products - 2.81%
Abbott Laboratories, Inc............. 32,600 1,332,525
-----------
TOTAL HEALTHCARE PRODUCTS........................ 1,949,925
-----------
HEALTHCARE SERVICES
HMOs - 4.55%
AETNA, Inc........................... 16,900 1,286,513
*First Health Group Corp............. 18,200 518,700
*Medpartners, Inc.................... 43,738 349,904
-----------
2,155,117
-----------
Hospitals/Long-Term Care - 2.61%
*Tenet HealthCare Corp............... 39,600 1,237,500
-----------
TOTAL HEALTHCARE SERVICES........................ 3,392,617
-----------
INDUSTRIAL PRODUCTS
Aerospace/Defense - 3.53%
Lockheed Martin Corp................. 15,800 1,672,825
-----------
Machinery - 2.15%
Briggs & Stratton Corp............... 4,600 172,213
Case Corp............................ 7,700 371,525
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
----------------------------------------------------------
Value+Growth Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- ---------- -----------
<S> <C> <C>
Machinery - 2.15%--Continued
Deere & Co........................... 9,000 $ 475,875
-----------
1,019,613
-----------
Manufacturing - Diversified - 0.47%
Parker Hannifin Corp................. 5,850 223,031
-----------
Office Equipment - 4.10%
Xerox Corp........................... 19,100 1,941,038
-----------
TOTAL INDUSTRIAL PRODUCTS........................ 4,856,507
-----------
INSURANCE
Life Insurance - 3.08%
Protective Life Corp................. 18,800 689,725
Reliastar Financial Corp............. 16,000 768,000
-----------
1,457,725
-----------
Multi-Line Insurance - 1.83%
Cigna Corp........................... 12,600 869,400
-----------
Property/Casualty Insurance - 1.63%
*Amerin Corp......................... 8,200 239,338
Travelers Property Casualty Corp..... 12,400 531,650
-----------
770,988
-----------
TOTAL INSURANCE.................................. 3,098,113
-----------
REAL ESTATE INVESTMENT TRUSTS - 1.07%
Equity Residential Properties
Trust............................... 10,700 507,581
-----------
TECHNOLOGY
Hardware & Peripherals - 3.09%
*E. M. C. Corp....................... 25,400 1,138,238
*Zebra Technologies Corp............. 7,600 324,900
-----------
1,463,138
-----------
Semiconductors - 1.41%
*LSI Logic Corp...................... 29,000 668,813
-----------
Software - 6.99%
Adobe Systems, Inc................... 20,300 861,480
Electronic Data Systems Corp......... 16,300 652,000
First Data Corp...................... 21,500 716,219
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
----------------------------------------------------------
Value+Growth Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- ---------- -----------
<S> <C> <C>
Software - 6.99%--Continued
*Synopsys, Inc....................... 23,700 $ 1,084,275
-----------
3,313,974
-----------
TOTAL TECHNOLOGY................................. 5,445,925
-----------
TRANSPORTATION
Miscellaneous Transportation - 1.55%
*FDX Corp............................ 11,700 734,175
-----------
Railroad - 1.70%
Union Pacific Corp................... 18,200 803,075
-----------
TOTAL TRANSPORTATION............................. 1,537,250
-----------
UTILITIES
Utility Service Providers - 4.07%
*AES Corp............................ 36,700 1,929,040
-----------
TOTAL COMMON STOCKS (Cost $40,950,518)........... 46,105,645
-----------
<CAPTION>
Par
Value
----------
<S> <C> <C>
REPURCHASE AGREEMENT - 3.14%
State Street Bank & Trust Co.
$1,488,000 at 4.00% (Agreement dated
June 30, 1998; to be repurchased at
$1,488,165 on 7/01/98;
collateralized by U.S. Treasury
Notes due 7/31/01) (Value
$1,560,499)
(Cost $1,488,000)................... $1,488,000 1,488,000
-----------
TOTAL INVESTMENTS - 100.41% (Cost $42,438,518)... 47,593,645
-----------
Liabilities in Excess of Cash and Other Assets -
(0.41%)......................................... (194,302)
-----------
NET ASSETS - 100.00%............................... $47,399,343
-----------
-----------
</TABLE>
* INDICATES NON-INCOME PRODUCING SECURITY.
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
----------------------------------------------------------
Balanced Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- ----------- -----------
<S> <C> <C>
COMMON STOCKS - 57.74%
BASIC INDUSTRIES
Aluminum - 0.59%
Reynolds Metals Co................... 7,000 $ 391,563
-----------
Building Materials - 1.34%
*American Standard Co., Inc.......... 20,000 893,750
-----------
Chemicals - 0.72%
OM Group, Inc........................ 11,600 478,500
-----------
TOTAL BASIC INDUSTRIES............................ 1,763,813
-----------
COMMUNICATIONS
Telecommunications Equipment - 3.29%
ECI Telecom, Limited................. 24,800 939,300
*3Com Corp........................... 40,775 1,251,283
-----------
2,190,583
-----------
Wireless Service - 1.19%
SBC Communications, Inc.............. 19,900 796,000
-----------
TOTAL COMMUNICATIONS.............................. 2,986,583
-----------
CONSUMER CYCLICALS
Auto Parts - 0.67%
Pep Boys Manny Moe & Jack............ 23,600 446,925
-----------
Retail - 1.50%
Dayton Hudson Corp................... 7,800 378,300
*Federated Department Stores, Inc.... 11,500 618,844
-----------
997,144
-----------
Retail: Food - 1.52%
American Stores Co................... 32,400 783,675
Hannaford Brothers Co................ 5,200 228,800
-----------
1,012,475
-----------
Retail: Specialty - 0.79%
Circuit City Stores, Inc............. 11,300 529,688
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
----------------------------------------------------------
Balanced Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- ----------- -----------
<S> <C> <C>
Toys - 0.79%
Mattel, Inc.......................... 12,400 $ 524,675
-----------
TOTAL CONSUMER CYCLICALS.......................... 3,510,907
-----------
CONSUMER SERVICES
Entertainment - 1.00%
*GTECH Holdings Corp................. 12,500 421,094
*Sabre Group Holdings, Inc........... 6,500 247,000
-----------
668,094
-----------
Hotel/Motel - 0.59%
Hilton Hotels Corp................... 13,800 393,300
-----------
Publishing - 0.73%
McGraw-Hill Companies, Inc........... 6,000 489,375
-----------
TOTAL CONSUMER SERVICES........................... 1,550,769
-----------
ENERGY
Natural Gas - 2.35%
Enron Corp........................... 12,800 692,000
K.N. Energy, Inc..................... 16,200 877,838
-----------
1,569,838
-----------
Oil and Gas Services - 1.16%
*EVI Weatherford, Inc................ 6,792 252,153
Santa Fe International Corp.......... 17,200 520,300
-----------
772,453
-----------
Oil: Integrated Domestic - 1.48%
Ultramar Diamond Shamrock............ 14,600 460,813
Vastar Resources, Inc................ 12,000 524,250
-----------
985,063
-----------
Oil: Integrated International - 0.95%
Texaco, Inc.......................... 10,600 632,687
-----------
TOTAL ENERGY...................................... 3,960,041
-----------
FINANCIAL
Banks: Money Center - 4.32%
Chase Manhattan Corp................. 19,600 1,479,800
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
----------------------------------------------------------
Balanced Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- ----------- -----------
<S> <C> <C>
Banks: Money Center - 4.32%--Continued
Citicorp............................. 9,400 $ 1,402,950
-----------
2,882,750
-----------
Banks: Regional - 1.79%
First Union Corp..................... 11,900 693,175
Fleet Financial Group, Inc........... 6,000 501,000
-----------
1,194,175
-----------
Banks: Savings & Loan - 1.48%
Washington Mutual, Inc............... 22,650 983,859
-----------
Miscellaneous Finance - 0.75%
CIT Group, Inc....................... 13,300 498,750
-----------
TOTAL FINANCIAL................................... 5,559,534
-----------
HEALTHCARE PRODUCTS
Drugs - 0.74%
*Biogen, Inc......................... 10,100 494,900
-----------
Medical Products - 1.64%
Abbott Laboratories, Inc............. 26,800 1,095,450
-----------
TOTAL HEALTHCARE PRODUCTS......................... 1,590,350
-----------
HEALTHCARE SERVICES
HMOs - 2.76%
AETNA, Inc........................... 14,700 1,119,038
*First Health Group Corp............. 15,400 438,900
*Medpartners, Inc.................... 35,700 285,600
-----------
1,843,538
-----------
Hospitals/Long-Term Care - 1.57%
*Tenet HealthCare Corp............... 33,400 1,043,750
-----------
TOTAL HEALTHCARE SERVICES......................... 2,887,288
-----------
INDUSTRIAL PRODUCTS
Aerospace/Defense - 2.18%
Lockheed Martin Corp................. 13,700 1,450,488
-----------
Machinery - 1.35%
Briggs & Stratton Corp............... 4,200 157,238
Case Corp............................ 6,700 323,275
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
----------------------------------------------------------
Balanced Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- ----------- -----------
<S> <C> <C>
Machinery - 1.35%--Continued
Deere & Co........................... 7,900 $ 417,713
-----------
898,226
-----------
Manufacturing - Diversified - 0.34%
Parker Hannifin Corp................. 6,000 228,750
-----------
Office Equipment - 2.36%
Xerox Corp........................... 15,500 1,575,188
-----------
TOTAL INDUSTRIAL PRODUCTS......................... 4,152,652
-----------
INSURANCE
Life Insurance - 1.81%
Protective Life Corp................. 15,400 564,988
Reliastar Financial Corp............. 13,400 643,200
-----------
1,208,188
-----------
Multi-Line Insurance - 1.24%
Cigna Corp........................... 12,000 828,000
-----------
Property/Casualty Insurance - 1.00%
*Amerin Corp......................... 7,000 204,313
Travelers Property Casualty Corp..... 10,800 463,050
-----------
667,363
-----------
TOTAL INSURANCE................................... 2,703,551
-----------
REAL ESTATE INVESTMENT TRUSTS - 0.62%
Equity Residential Properties
Trust............................... 8,700 412,706
-----------
TECHNOLOGY
Hardware & Peripherals - 1.86%
*E. M. C. Corp....................... 21,500 963,469
*Zebra Technologies Corp............. 6,500 277,875
-----------
1,241,344
-----------
Semiconductors - 0.84%
*LSI Logic Corp...................... 24,200 558,113
-----------
Software - 4.21%
Adobe Systems, Inc................... 17,200 729,925
Electronic Data Systems Corp......... 14,400 576,000
First Data Corp...................... 18,200 606,288
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
----------------------------------------------------------
Balanced Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- ----------- -----------
<S> <C> <C>
Software - 4.21%--Continued
*Synopsys, Inc....................... 19,500 $ 892,125
-----------
2,804,338
-----------
TOTAL TECHNOLOGY.................................. 4,603,795
-----------
TRANSPORTATION
Miscellaneous Transportation - 0.90%
*FDX Corp............................ 9,600 602,400
-----------
Railroad - 1.03%
Union Pacific Corp................... 15,500 683,937
-----------
TOTAL TRANSPORTATION.............................. 1,286,337
-----------
UTILITIES
Utility Service Providers - 2.29%
*AES Corp............................ 29,100 1,529,563
-----------
TOTAL COMMON STOCKS (Cost $30,423,792)............ 38,497,889
-----------
<CAPTION>
Par Value
-----------
<S> <C> <C>
CORPORATE BONDS - 16.43%
Basic Industries - 1.55%
Glatfelter P. H. Co.
6.875%, 07/15/07.................... $ 1,000,000 1,036,330
-----------
Computers - 2.19%
International Business Machines
5.945%, 05/14/01.................... 1,450,000 1,457,221
-----------
Entertainment - 1.66%
Viacom International, Inc.
10.250%, 09/15/01................... 1,000,000 1,105,000
-----------
Financial Services - 7.00%
Associates Corp.
5.875%, 05/16/01.................... 1,350,000 1,347,246
Ford Motor Credit Corp.
8.200%, 02/15/02.................... 1,350,000 1,445,850
Paine Webber Group, Inc.
9.250%, 12/15/01.................... 800,000 871,944
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
----------------------------------------------------------
Balanced Fund
<TABLE>
<CAPTION>
Description Par Value Value
- --------------------------------------- ----------- -----------
<S> <C> <C>
Financial Services - 7.00%--Continued
Salomon, Inc.
5.582%, 04/05/99.................... $ 1,000,000 $ 1,000,000
-----------
4,665,040
-----------
Oil & Gas Services - 0.77%
Gulf CDA Resources, Limited
9.000%, 08/15/99.................... 500,000 513,850
-----------
Retail: Food - 1.46%
Coca Cola Enterprises, Inc.
6.375%, 8/01/01..................... 960,000 973,114
-----------
Retail - 1.80%
Wal Mart Stores, Inc.
8.625%, 04/01/01.................... 1,125,000 1,203,289
-----------
TOTAL CORPORATE BONDS (cost $10,818,463).......... 10,953,844
-----------
U.S. TREASURY OBLIGATIONS - 20.97%
U. S. Treasury Bonds - 2.16%
7.500%, 11/15/16..................... 1,200,000 1,440,804
-----------
U. S. Treasury Notes - 18.81%
5.375%, 02/15/01..................... 2,550,000 2,541,508
8.000%, 05/15/01..................... 1,300,000 1,384,773
7.500%, 11/15/01..................... 3,000,000 3,177,390
7.250%, 05/15/04..................... 925,000 1,003,764
7.500%, 02/15/05..................... 2,550,000 2,822,187
7.125%, 02/29/00..................... 1,575,000 1,614,674
-----------
12,544,296
-----------
TOTAL U.S. TREASURY OBLIGATIONS (Cost
$13,784,091)..................................... 13,985,100
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE>
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
----------------------------------------------------------
Balanced Fund
<TABLE>
<CAPTION>
Description Par Value Value
- --------------------------------------- ----------- -----------
<S> <C> <C>
REPURCHASE AGREEMENT - 4.44%
State Street Bank & Trust Co.
$2,963,000 at 4.00% (Agreement dated
June 30, 1998; to be repurchased at
$2,963,329 on 7/01/98;
collateralized by U.S. Treasury
Notes due 7/31/01) (Value
$3,104,742) (Cost $2,963,000)....... $ 2,963,000 $ 2,963,000
-----------
TOTAL INVESTMENTS - 99.58% (Cost $57,989,346)..... 66,399,833
-----------
Cash and Other Assets, Net of Liabilities -
0.42%............................................ 281,107
-----------
NET ASSETS - 100.00%................................ $66,680,940
-----------
-----------
</TABLE>
* INDICATES NON-INCOME PRODUCING SECURITY.
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1998
----------------------------------------------------------
<TABLE>
<CAPTION>
Mini-Cap Value+ Balanced
Fund Growth Fund Fund
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS
Investments in securities at market value
(cost of $82,404,526, $42,438,518,
$57,989,346) $ 88,351,013 $47,593,645 $ 66,399,833
Cash 4,352 1,520 2,256
Receivables:
Investment securities sold 4,422,788 1,309,483 1,038,760
Income receivable 73,118 36,934 459,553
Fund shares sold 482,226 1,036 86,985
Deferred organization costs 11,578 11,578 3,523
------------ ------------ ------------
Total assets 93,345,075 48,954,196 67,990,910
------------ ------------ ------------
LIABILITIES
Payables:
Investment securities purchased 1,900,777 1,448,562 1,220,972
Fund shares repurchased 423,237 13,891 1,828
Investment advisory fees 64,545 42,718 23,595
Shareholder servicing fees 15,797 -- 10,035
Accrued expenses 70,416 49,682 53,540
------------ ------------ ------------
Total liabilities 2,474,772 1,554,853 1,309,970
------------ ------------ ------------
NET ASSETS $ 90,870,303 $47,399,343 $ 66,680,940
------------ ------------ ------------
------------ ------------ ------------
COMPOSITION OF NET ASSETS
Paid-in capital $ 79,665,598 $40,825,246 $ 55,995,110
Undistributed net investment income -- -- 17,871
Accumulated net realized gain 5,258,218 1,418,970 2,257,472
Net unrealized appreciation 5,946,487 5,155,127 8,410,487
------------ ------------ ------------
NET ASSETS $ 90,870,303 $47,399,343 $ 66,680,940
------------ ------------ ------------
------------ ------------ ------------
Number of shares, $0.01 par value, issued
and outstanding (unlimited shares
authorized) 4,758,478 2,925,527 4,319,389
------------ ------------ ------------
------------ ------------ ------------
NET ASSET VALUE PER SHARE $ 19.10 $ 16.20 $ 15.44
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 1998
----------------------------------------------------------
<TABLE>
<CAPTION>
Mini-Cap Value+ Balanced
Fund Growth Fund Fund
------------ ------------ -----------
<S> <C> <C> <C>
INVESTMENT INCOME
Income
Dividend income $ 624,156 $ 409,866 $ 418,868
Interest income 613,556 117,354 1,648,013
------------ ------------ -----------
Total income 1,237,712 527,220 2,066,881
------------ ------------ -----------
Expenses (note 3)
Investment advisory fees 1,356,867 333,535 586,424
Shareholder service fees 335,740 68,173 117,748
Administration fees 74,735 50,001 52,436
Custodian fees 72,999 49,002 53,999
Professional fees 64,588 3,485 28,312
Transfer agent fees 64,334 29,000 39,998
Shareholder reporting fees 54,753 14,000 28,977
Registration fees 24,390 10,001 10,677
Trustees fees 24,145 12,001 14,977
Miscellaneous 19,537 1,079 5,899
Amortization of deferred organization
costs 9,366 9,366 2,537
------------ ------------ -----------
Total expenses 2,101,454 579,643 941,984
Less: expenses reimbursed (67,397) (88,072) (250,482)
Add: credit line commitment fees 6,001 1,000 3,000
------------ ------------ -----------
Net expenses 2,040,058 492,571 694,502
------------ ------------ -----------
Net investment income (loss) (802,346) 34,649 1,372,379
------------ ------------ -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain on investments 27,481,233 2,939,634 4,341,116
Change in net unrealized appreciation on
investments (13,131,072) 1,178,382 (176,701)
------------ ------------ -----------
Net gain on investments 14,350,161 4,118,016 4,164,415
------------ ------------ -----------
Net increase in net assets resulting from
operations $ 13,547,815 $4,152,665 $ 5,536,794
------------ ------------ -----------
------------ ------------ -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED JUNE 30, 1998 AND 1997
----------------------------------------------------------
Mini-Cap Fund
<TABLE>
<CAPTION>
1998 1997
------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment loss $ (802,346) $ (90,775)
Net realized gain on investments 27,481,233 9,560,902
Change in net unrealized appreciation on
investments (13,131,072) 12,401,072
------------- -------------
Net increase in net assets from operations 13,547,815 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 96,326,126 79,855,448
Net asset value of shares issued on reinvestment of
distributions 28,723,773 2,999,212
Cost of shares redeemed (139,969,472) (71,179,955)
------------- -------------
Net increase / (decrease) from Fund share
transactions (14,919,573) 11,674,705
------------- -------------
Net increase / (decrease) in net assets (32,182,245) 30,355,221
NET ASSETS
Beginning of year 123,052,548 92,697,327
------------- -------------
End of year $ 90,870,303 $ 123,052,548
------------- -------------
------------- -------------
CHANGE IN SHARES
Shares sold 4,433,085 4,230,103
Shares issued on reinvestment of distributions 1,437,672 161,334
Shares redeemed (6,748,102) (3,797,059)
------------- -------------
Net increase / (decrease) (877,345) 594,378
------------- -------------
------------- -------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED JUNE 30, 1998 AND 1997
----------------------------------------------------------
Value+Growth Fund
<TABLE>
<CAPTION>
1998 1997
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income $ 34,649 $ 90,334
Net realized gain on investments 2,939,634 3,138,603
Change in net unrealized appreciation on investments 1,178,382 2,300,581
------------ ------------
Net increase in net assets from operations 4,152,665 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 30,647,357 11,214,419
Net asset value of shares issued on reinvestment of
distributions 3,471,757 1,766,339
Cost of shares redeemed (11,294,038) (13,957,484)
------------ ------------
Net increase / (decrease) from Fund share transactions 22,825,076 (976,726)
------------ ------------
Net increase in net assets 23,405,496 2,738,148
NET ASSETS
Beginning of year 23,993,847 21,255,699
------------ ------------
End of year $ 47,399,343 $ 23,993,847
------------ ------------
------------ ------------
CHANGE IN SHARES
Shares sold 1,930,512 800,854
Shares issued on reinvestment of distributions 222,229 128,814
Shares redeemed (702,262) (1,006,898)
------------ ------------
Net increase / (decrease) 1,450,479 (77,230)
------------ ------------
------------ ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED JUNE 30, 1998 AND 1997
----------------------------------------------------------
Balanced Fund
<TABLE>
<CAPTION>
1998 1997
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income $ 1,372,379 $ 1,409,187
Net realized gain on investments 4,341,116 5,924,699
Change in net unrealized appreciation on investments (176,701) 4,204,111
------------ ------------
Net increase in net assets from operations 5,536,794 11,537,997
Distributions to shareholders:
From net investment income (1,405,083) (1,356,465)
From net realized gains (6,870,711) (4,582,193)
------------ ------------
Total distributions (8,275,794) (5,938,658)
------------ ------------
Fund share transactions:
Proceeds from shares sold 14,900,421 13,993,658
Net asset value of shares issued on reinvestment of
distributions 8,100,854 5,763,051
Cost of shares redeemed (16,979,476) (8,937,283)
------------ ------------
Net increase from Fund share transactions 6,021,799 10,819,426
------------ ------------
Net increase in net assets 3,282,799 16,418,765
NET ASSETS
Beginning of year 63,398,141 46,979,376
------------ ------------
End of year $ 66,680,940 $ 63,398,141
------------ ------------
------------ ------------
CHANGE IN SHARES
Shares sold 956,486 944,650
Shares issued on reinvestment of distributions 527,543 397,810
Shares redeemed (1,109,840) (596,248)
------------ ------------
Net increase 374,189 746,212
------------ ------------
------------ ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED.
----------------------------------------------------------
Mini-Cap Fund
<TABLE>
<CAPTION>
07/01/97 07/01/96 07/01/95 09/30/94+
TO TO TO TO
06/30/98 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) (0.17) (0.01) (0.02) 0.01
Net realized and unrealized gain on
investments 2.40 4.04 5.25 4.13
----------- ----------- ----------- -----------
Total from investment operations 2.23 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 $ 19.10 $ 21.83 $ 18.39 $ 14.12
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Total return 10.29% 22.45% 38.46% 41.47%**
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Net assets at end of period (in
000's) $ 90,870 $ 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 average net assets (0.59%) (0.08%) (0.35%) 0.04%*
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Portfolio turnover rate 168.74% 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 1.55%, 1.39%, 1.74%, AND 4.99% FOR THE MINI-CAP FUND FOR THE
PERIODS ENDED JUNE 30, 1998, 1997, 1996, AND 1995, RESPECTIVELY.
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED.
----------------------------------------------------------
Value+Growth Fund
<TABLE>
<CAPTION>
07/01/96 07/01/95 09/30/94+
07/01/97 TO TO TO TO
06/30/98 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 0.01 0.10 0.11 0.05
Net realized and unrealized gain on
investments 1.77 4.03 1.40 2.79
----------- ----------- ----------- -----------
Total from investment operations 1.78 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 $ 16.20 $ 16.27 $ 13.69 $ 12.82
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Total return 11.54% 32.38% 12.11% 28.43%**
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Net assets at end of period (in
000's) $ 47,399 $ 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 0.09% 0.45% 0.78% 1.18%*
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Portfolio turnover rate 60.51% 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 1.48%, 2.11%, 2.12%, AND 5.21% FOR THE VALUE+GROWTH FUND FOR PERIODS
ENDED JUNE 30, 1998, 1997, 1996, AND 1995, RESPECTIVELY.
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED.
----------------------------------------------------------
Balanced Fund
<TABLE>
<CAPTION>
07/01/97 07/01/96 07/01/95 10/01/94 11/01/93 11/01/92
TO TO TO TO TO TO
06/30/98 06/30/97 06/30/96 06/30/95 09/30/94 10/31/93
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 16.07 $ 14.69 $ 13.96 $ 12.41 $ 12.82 $ 10.84
----------- ----------- ----------- ----------- ----------- -----------
Income from investment
operations
Net investment income 0.31 0.38 0.43 0.24 0.16 0.16
Net realized and
unrealized gain on
investments 1.05 2.78 1.27 1.59 0.05 1.98
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations 1.36 3.16 1.70 1.83 0.21 2.14
----------- ----------- ----------- ----------- ----------- -----------
Less distributions
From net investment
income (0.32) (0.37) (0.43) (0.24) (0.18) (0.16)
From net realized gains (1.67) (1.41) (0.54) (0.04) (0.44) -
----------- ----------- ----------- ----------- ----------- -----------
Total distributions (1.99) (1.78) (0.97) (0.28) (0.62) (0.16)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of
period $ 15.44 $ 16.07 $ 14.69 $ 13.96 $ 12.41 $ 12.82
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
Total return 8.96% 23.12% 12.56% 14.98%** 3.66%** 19.83%
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
Net assets at end of
period (in 000's) $ 66,681 $ 63,398 $ 46,979 $ 38,836 $ 34,659 $ 20,931
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
Ratio of expenses to
average net assets
(net of expense
reimbursements)(1) 1.00% 1.26% 1.35% 1.33%* 1.63%* 1.47%
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
Ratio of net investment
income to average
net assets 1.99% 2.62% 2.98% 2.51%* 1.77%* 1.51%
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
Portfolio turnover rate 83.27% 91.90% 69.11% 54.02% 60.90% 44.12%
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
</TABLE>
* ANNUALIZED
**NOT ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
1 THE RATIOS OF EXPENSES TO AVERAGE NET ASSETS BEFORE EXPENSE REIMBURSEMENTS WAS
1.37%, 1.31%, 1.49%, AND 1.42% FOR THE BALANCED FUND FOR THE PERIODS ENDED
JUNE 30, 1998, 1997, 1996, AND 1995, RESPECTIVELY.
SEE NOTES TO FINANCIAL STATEMENTS.
36
<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
37
<PAGE>
NOTES TO FINANCIAL STATEMENTS
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 Stock Market 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.
FEDERAL INCOME TAXES--Each Fund has elected and qualified and intends to
continue 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
38
<PAGE>
NOTES TO FINANCIAL STATEMENTS
2. Significant Accounting Policies--continued
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. Management Fees and Transaction with Affiliates
The Trust, on behalf of the Funds, entered into an Investment Advisory Agreement
with Jurika & Voyles, L.P., (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 and the Balanced Fund, and 1.00% for the
Mini-Cap Fund. The Adviser currently is voluntarily reducing its advisory fee
for the Balanced Fund to an annual rate of 0.70%. The Adviser has voluntarily
agreed to the expense limitation described herein for an indefinite period of
time, by reducing 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 the three year period following the year in which the Adviser
waived fees or reimbursed expenses of the Fund. Fee waivers and expense
reimbursements are voluntary and may be terminated at any time. Unreimbursed
expenses at June 30, 1998 amounted to $130,866, $386,759 and $338,512, for the
Mini-Cap, Value+Growth and Balanced Funds, respectively.
Pursuant to a Shareholder Services Plan, effective June 9, 1997, the Fund will
reimburse the Adviser for any expenses incurred, not to exceed 0.25% of the
Fund's average daily net assets, for shareholder services provided. Under the
Shareholders Services Plan, the Adviser as Service Coordinator will provide, or
will arrange for others to provide, certain specified shareholder services to
Class J shareholders of the Funds. In certain cases, the Adviser may also pay a
fee, out of its own resources
39
<PAGE>
NOTES TO FINANCIAL STATEMENTS
3. Management Fees and Transaction with Affiliates--continued
and not out of the service fee payable under the Shareholder Services Plan, to a
participating organization for providing other administrative services to its
customers who invest in Class J shares of the Fund.
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.
First Fund Distributors, Inc. serves as the Distributor to the Funds pursuant to
a Distribution Agreement. The Distributor receives no fee for its distribution
services.
Certain officers of the Adviser, Administrator and Distributor are also officers
and/or Trustees of the Funds.
Each unaffiliated Trustee is compensated by the Trust at $5,000 per year plus an
attendance fee of $500 for each Trustees' meeting attended.
4. Purchases and Sales of Securities
The cost of security purchases and the proceeds from security sales, other than
short-term investments for the year ended June 30, 1998, are as follows:
<TABLE>
<CAPTION>
FUNDS PURCHASES SALES
- --------------------------------------------- ---------------- ----------------
<S> <C> <C>
Mini-Cap Fund $ 201,445,476 250,486,405
Value+Growth Fund 42,252,145 21,885,114
Balanced Fund 58,236,773 51,457,361
</TABLE>
40
<PAGE>
NOTES TO FINANCIAL STATEMENTS
4. Purchases and Sales of Securities--continued
The total cost of securities and the aggregate gross unrealized appreciation and
depreciation for securities held by the Funds at June 30, 1998, based on cost
for federal income tax purposes, are as follows:
<TABLE>
<CAPTION>
GROSS GROSS NET
TOTAL UNREALIZED UNREALIZED UNREALIZED
FUNDS TAX COST APPRECIATION DEPRECIATION APPRECIATION
- --------------------- ---------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
Mini-Cap Fund $ 82,452,570 $ 10,330,304 ($ 4,431,861) $ 5,898,443
Value+Growth Fund 42,470,551 6,856,962 (1,733,868) 5,123,094
Balanced Fund 57,989,346 9,513,371 (1,102,884) 8,410,487
</TABLE>
5. Line of Credit
The Trust has a $10 million unsecured line of credit with a group of
participating banks. The interest rate charged on borrowings is the Overnight
Federal Funds rate, plus 0.445%. Each Fund pays its pro rata share of a
commitment fee of 0.07% of the unused portion of the commitment. There were no
borrowings under this commitment during the year ended June 30, 1998. The Funds
also pay a utilization fee of 0.05% on the principal amount outstanding when
more than 50% of total commitment is outstanding, or 0.10% when more than 66.67%
of the total commitment is outstanding.
41
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To the Board of Trustees and Shareholders of
Jurika & Voyles Fund Group
We have audited the accompanying statement of assets and liabilities, including
the schedules of investments of the Jurika & Voyles Mini-Cap Fund, Jurika &
Voyles Value+Growth Fund, and Jurika & Voyles Balanced Fund (all of which are
separate series of Jurika & Voyles Fund Group (the "Trust") as of June 30, 1998,
and the related statements of operations for the year then ended, the statements
of changes in net assets, and the financial highlights for each of the three
years in the period then ended, and for the period ended June 30, 1995. These
financial statements and financial highlights are the responsibility of the
Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits. The financial
highlights for the periods prior to October 1, 1994 were audited by other
auditors whose report thereon, dated November 23, 1994 expressed an unqualified
opinion with respect thereto.
We conducted our audits in accordance with generally accepted auditing
standards. These standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at June 30,
1998, by correspondence with the custodian and brokers. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Jurika & Voyles Mini-Cap Fund, Jurika & Voyles Value+Growth Fund, and Jurika &
Voyles Balanced Fund as of June 30, 1998, the results of their operations, the
changes in their net assets and the financial highlights for the periods
indicated in conformity with generally accepted accounting principles.
[SIGNATURE]
New York, New York
July 24, 1998
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[LOGO]
Jurika & Voyles Fund Group
1999 Harrison Street, Suite 700
Oakland, California 94612-3517
(800) JV-INVST
(800) 58-46878
