<PAGE>
[LOGO]
Semi-Annual Report
Jurika & Voyles Fund Group
Mini-Cap Fund
Value+Growth Fund
Balanced Fund
December 31, 1998
<PAGE>
Table of Contents
<TABLE>
<S> <C>
.............................................................
Letter to Shareholders 1
.............................................................
Performance
..........................................................
Mini-Cap Fund 3
..........................................................
Value+Growth Fund and Balanced Fund (equity 6
portion)
..........................................................
Balanced Fund (fixed income portion) 10
.............................................................
Schedule of Investments 12
.............................................................
Statements of Assets and Liabilities 28
.............................................................
Statements of Operations 29
.............................................................
Statements of Changes in Net Assets 30
.............................................................
Financial Highlights 33
.............................................................
Notes to Financial Statements 37
</TABLE>
DIRECTORY OF FUNDS' SERVICE PROVIDERS
Investment Adviser
Jurika & Voyles, L.P., Oakland, CA
Distributor
First Fund Distributors, Inc., Phoenix, AZ
Custodian, Transfer Agent and Fund Accountant
State Street Bank & Trust Co., Boston, MA
Legal Counsel
Paul, Hastings, Janofsky & Walker LLP, San Francisco, CA
Auditor
McGladrey & Pullen, LLP, New York, NY
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 six months ending December 31, 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,
/s/ William K. Jurika /s/ Glenn C. Voyles
- -------------------------------------- ------------------------
William K. Jurika Glenn C. Voyles
1
<PAGE>
PERFORMANCE
-------------------------------------------------
Mini-Cap Fund
1998 Review
- -----------
1998 has been a very difficult year for investors in the Jurika & Voyles
Mini-Cap Fund with a return of -14.32% versus -2.55% for the Russell 2000 index.
The Fund's underperformance can be traced to three factors, two of which were
due to concerns about cyclical factors.
ENERGY In 1998 oil prices declined, and as a result, prices for energy service
stocks declined. Since oil is a cyclical but necessary commodity, we believe
that as economic growth eventually recovers, oil supplies will be inadequate and
energy stock prices will recover. As energy service stocks declined, we
increased our commitment to this sector. We believed, and continue to believe,
that these stocks are exceptional values, selling at very low multiples relative
to potential earnings and at significant discounts to their replacement values.
The energy stocks we have invested in are very well financed, provide basic
services to the energy industry and have limited risk of technological
obsolescence. While these stocks fit our investment philosophy, we
underestimated investor emotions and were obviously too early, resulting in
adverse performance. This sector accounts for approximately 50% of our
underperformance relative to the Russell 2000 benchmark index. However, we
invested in these stocks with a 2 to 3 year time horizon and expect to see very
significant future returns. Today they are as unloved as the Internet stocks are
loved, but we are very optimistic about their potential.
PRODUCER DURABLES The producer durables sector was another area where our active
overweighting, due to undervaluation, hurt performance. In the second and third
quarters, as investors worried about the impact of Asia and slow economic
growth, stocks in this sector declined significantly. In many cases, little
changed but the stock price and we believe investors may have over discounted
concerns about slowing economic growth. As with the energy sector, we are
finding many exceptional values selling at low price earnings multiples, often
at prices significantly below the replacement value of the company. While
reducing our exposure to this sector early in the year partially mitigated the
impact of the downturn, this sector still accounted for about 30% of our
underperformance relative to the Russell 2000.
HEALTHCARE Investments in the healthcare sector represented approximately 5% of
the portfolio in 1998 but was significant enough to contribute to our
underperformance. As opposed to the energy and producer durables sectors, where
we feel we have made very good investments that are out of favor, our healthcare
stock selection had a detrimental effect on the portfolio and were eliminated.
We underestimated
3
<PAGE>
PERFORMANCE
-------------------------------------------------
Mini-Cap Fund
the underwriting risk inherent in managed care to which many of these companies
are exposed. Currently, we hold some investments in specific pharmaceutical and
healthcare service companies, but have been more risk aware of our investments
in this sector and have generally opted to avoid the managed care and hospital
sectors of healthcare.
1999 Outlook
- ------------
We expect 1999 to be another growth year, although at a slower rate than 1998.
Valuation differentials between large and small stocks are at extreme levels and
the valuations of the "nifty 25" (the 25 largest, highest P/E stocks) is at a
valuation extreme comparable to the nifty fifty in the early 1970s. As we enter
1999, the valuations in the small stock sector, with the exception of the
Internet stocks, are as attractive as they have been over the past 30 years. The
Internet stocks have been subjected to a high level of speculation that will
probably unwind in 1999 with disastrous results for some investors. Due to this
valuation disparity, we anticipate that investors will recognize the madness
rampant in the market and begin favoring smaller, undervalued stocks over
continuing to invest in mega-multiple
P/E stocks or go-go internet stocks that trade at exorbitant prices in the
absence of earnings.
We see attractive valuations in almost all sectors of the small-cap universe.
These sectors are populated with stocks selling at low price to earnings ratios
below their replacement costs with little downside risk and the potential to
have very rewarding returns over the next 12-18 months. The Mini-Cap Fund is
structured to benefit from these valuations. Our companies have low earnings
expectations incorporated into their current prices. We have confidence that
buying undervalued companies provides downside protection with greater potential
upside. Our research department has performed detailed analysis of the business
models of each of the companies we own. We understand where the company's growth
comes from, what the risks are and have high conviction in the ability of our
companies to meet our earnings expectations. We expect this analysis to reduce
the risk of earnings disappointments (in a market where we believe
disappointments will be commonplace) and consequent losses of value.
To summarize, we believe that this market environment provides a very attractive
opportunity for investing in small capitalization stocks. The Mini-Cap Fund is
comprised of carefully researched companies and we have strong confidence that
they will meet our expectations and that they are valued attractively relative
to the broader market. This should provide strong performance in 1999.
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>
9/30/1994 $10,000.00 $10,000.00 $10,000.00
10/31/1994 10,410.00 10,167.00 9,960.00
11/30/1994 10,400.00 9,764.39 9,557.42
12/31/1994 10,650.00 9,985.06 9,813.55
1/31/1995 10,409.55 9,866.24 9,690.04
2/28/1995 11,211.05 10,270.76 10,093.03
3/31/1995 11,832.22 10,544.98 10,265.63
4/30/1995 12,814.06 10,692.61 10,493.65
5/31/1995 13,244.87 10,859.42 10,674.16
6/30/1995 14,146.57 11,521.84 11,227.98
7/31/1995 15,358.84 12,389.44 11,874.83
8/31/1995 15,278.69 12,607.49 12,120.66
9/30/1995 15,509.13 12,963.02 12,337.60
10/31/1995 15,148.45 12,562.47 11,786.15
11/30/1995 16,070.18 12,995.67 12,280.99
12/31/1995 16,210.44 13,142.73 12,605.20
1/31/1996 15,816.36 13,080.95 12,591.34
2/29/1996 16,689.73 13,608.81 12,984.19
3/31/1996 17,690.90 13,884.39 13,249.06
4/30/1996 19,682.59 14,992.36 13,957.89
5/31/1996 20,502.69 15,614.54 14,507.83
6/30/1996 19,586.73 14,985.28 13,911.56
7/31/1996 18,574.91 13,530.21 12,697.08
8/31/1996 19,384.37 14,350.14 13,434.78
9/30/1996 19,948.86 15,173.84 13,960.08
10/31/1996 20,034.06 14,709.52 13,745.09
11/30/1996 21,006.16 14,976.76 14,311.39
12/31/1996 21,423.66 16,029.67 14,686.35
1/31/1997 21,896.07 15,372.35 14,980.08
2/28/1997 20,929.26 14,491.51 14,617.56
3/31/1997 20,270.07 13,613.33 13,927.61
4/30/1997 20,226.12 13,500.34 13,966.61
5/31/1997 22,456.38 15,190.58 15,519.69
6/30/1997 23,983.50 15,936.44 16,185.49
7/31/1997 26,005.01 16,855.97 16,938.11
8/31/1997 27,118.02 17,049.81 17,326.00
9/30/1997 29,319.66 18,367.76 18,594.26
10/31/1997 27,709.86 17,442.03 17,777.97
11/30/1997 27,662.51 17,115.86 17,652.41
12/31/1997 26,536.65 17,292.16 17,972.51
1/31/1998 25,704.68 16,960.15 17,687.56
2/28/1998 27,158.88 18,325.44 18,996.44
3/31/1998 28,668.48 19,144.58 19,779.09
4/30/1998 29,319.41 19,948.66 19,887.87
5/31/1998 26,992.69 18,845.50 18,816.71
6/30/1998 26,452.56 18,403.00 18,851.00
7/30/1998 24,472.08 17,120.45 17,324.03
8/30/1998 19,306.21 13,723.11 13,959.70
9/30/1998 19,957.14 14,466.24 15,052.75
10/30/1998 21,286.69 15,056.68 15,666.90
11/30/1998 21,993.02 15,935.45 16,487.84
12/30/1998 22,736.67 17,141.36 17,508.44
Annualized One Year
Since Inception Total Return
Total Returns for Period Ending December 31, 1998
Jurika & Voyles MiniCap Fund 21.29% -14.32%
Lipper Analytical Services, Inc. Small Company
Index 13.50% -0.85%
Russell 2000 Index 14.07% -2.55%
</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 December 31, 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 fees and expenses in excess of
certain 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
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Value+Growth Fund and Balanced Fund (EQUITY PORTION)
1998 Review
- -----------
For equities, 1998 was a unique and memorable year. The 28.6% return by the S&P
500 represented the record fourth year in a row where the S&P 500 return
exceeded 20%. The size effect was the most dramatic in memory. We divided the
S&P 500 into quintiles (5 groups of 100 stocks) by capitalization and found the
following returns by quintile:
- ----------------------------------------------------------------
<TABLE>
<CAPTION>
Quintile Top 100 101-200 201-300 301-400 Bottom 100
- ------------------- ------------ ------------ ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
Cap Range Larger than $10.2 to $5.8 to $2.9 to Smaller than
(12/98).......... $23.3 $23.3 $10.2 $5.8 $2.9 billion
billion billion billion billion
Return............. 38.0% 13.7% 6.3% 5.3% -5.2%
</TABLE>
- --------------------------------------------------------------------------------
The P/E effect was also dramatic. We divided the S&P 500 into quintiles based on
forward P/E ratio and calculated performance. The results were:
- ----------------------------------------------------------------
<TABLE>
<CAPTION>
Quintile 1 2 3 4 5
- ----------------------------- --------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Forward P/E Range (12/98).... Over 44 30.7 to 44 25 to 30.7 18.1 to 25 Under 18.1
Return....................... 54.8% 38.3% 24.3% 12.3% 16.9%
</TABLE>
- --------------------------------------------------------------------------------
The size and P/E effects show that mega-multiple, large companies are driving
the market. The largest 25 companies in the S&P as of Dec. 31, 1998 contributed
over half of the S&P 500 1998 return. These stocks had a weighted average market
capitalization of $175 billion and an average P/E of 35 times.
Clear signs of irrational exuberance were evident in the initial public offering
and Internet sectors of the market. We are as enthusiastic as any investors
about the potential of the Internet, but we believe that paying for expensive
stocks in the absence of earnings is risky and counter to rational investing.
Last year, we foresaw slowing economic growth and profit pressures related to
the emerging markets. Valuation levels and returns were at high levels and we
believed that profit disappointments would challenge the longer-term growth
assumptions underlying the high valuations and result in falling prices.
So what happened? Our concerns about earnings proved well founded. Earnings
expectations
6
<PAGE>
PERFORMANCE
-------------------------------------------------
Value+Growth Fund and Balanced Fund (EQUITY PORTION)
for 1998 fell by around 10%. However, an associated reduction in valuation (P/E
ratio) did not occur. P/E multiples expanded over the year, being driven by:
- A significant reduction in interest rates. The 30-year bond fell from 5.9%
to 5.1% which was positive for investor sentiment and valuations.
- Actions on the part of the Federal Reserve and the IMF convinced investors
that these groups have the ability to indefinitely extend the "Goldilocks"
recovery, consequently increasing investor demand and driving stock prices
higher.
- An apparent stabilization of emerging market risks-- early signs of a
turnaround in Asian economies and a reduced risk of investor panic in
Latin America (supported by the Brazil "package").
Given our orientation to the mid cap/value sectors of the market (due to our
lower P/E emphasis), 1998 was a difficult year. The performance of the Fund's
equities was in-line with mid-cap indices but well below the S&P 500, which was
driven by the large, above average P/E stocks.
1999 Outlook
- -----------
We believe that investor expectations are too optimistic. Our view is that the
general confidence in the Fed and the IMF to extend the current environment of
non-inflationary growth will be challenged in 1999. Earnings estimates for 1999
and longer-term estimates of earnings growth rates are too high. As in 1998, we
expect estimates to fall during 1999.
We believe that the period of dominance by large growth stocks is over.
Valuation differentials between large and small stocks are at extreme levels and
the valuations of the "nifty 25" (the 25 largest, highest P/E stocks) is a
valuation extreme comparable to the nifty fifty in the early 1970s.
The Fund is structured to benefit from these views. The securities we own are
undervalued--they have low earnings expectations incorporated into their current
prices. We have confidence that buying undervalued companies provides downside
protection. Our research team performs detailed analysis of the business models
for each of the companies we own.
The Fund continues to emphasize the mid cap universe. The weighted average
market capitalization of our portfolio is $16 billion vs. $87 billion for the
S&P 500. We believe that the
7
<PAGE>
PERFORMANCE
-------------------------------------------------
Value+Growth Fund and Balanced Fund (EQUITY PORTION)
extreme valuation differential will result in significant outperformance by the
mid cap sector of the market.
We believe that the US technology industry offers exciting prospects and will
continue to drive both capital investment and efficiency across all industries,
domestically and worldwide. Thus, the Fund has a significant overweight in
technology relative to the S&P 500. The companies we own have strong market
shares, profitable business models and are attractively valued.
The Fund also has a significant exposure to companies we believe will be
protective in a difficult market environment. Around 5% of our portfolio is in
REITs and we own other defensive stocks which have income or book value
protection (Ultramar, Everest Reinsurance, Case). This component should benefit
performance in a difficult environment.
8
<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 Index Index
<S> <C> <C> <C>
9/30/1994 10,000.00 10,000.00 10,000.00
10/31/1994 10,140.00 10,190.52 10,225.00
11/30/1994 10,080.00 9,802.58 9,852.81
12/31/1994 10,559.00 9,888.09 9,998.63
1/31/1995 10,468.84 9,924.12 10,257.60
2/28/1995 10,868.58 10,290.97 10,657.64
3/31/1995 11,210.17 10,602.78 10,972.04
4/30/1995 11,751.15 10,902.97 11,294.62
5/31/1995 12,161.98 11,232.84 11,746.41
6/30/1995 12,843.11 11,737.26 12,018.92
7/31/1995 13,474.25 12,304.17 12,417.95
8/31/1995 13,554.39 12,433.36 12,449.00
9/30/1995 13,754.75 12,802.53 12,974.34
10/31/1995 13,103.58 12,632.35 12,927.64
11/30/1995 13,844.91 13,059.33 13,495.16
12/31/1995 13,525.34 13,114.18 13,755.62
1/31/1996 13,430.66 13,431.54 14,223.81
2/29/1996 13,756.72 13,642.42 14,355.58
3/31/1996 13,946.03 13,705.17 14,493.40
4/30/1996 14,713.80 14,049.17 14,706.45
5/31/1996 14,997.77 14,297.84 15,084.41
6/30/1996 14,398.28 14,157.72 15,141.73
7/31/1996 13,409.65 13,391.79 14,472.46
8/31/1996 14,145.86 13,789.53 14,777.83
9/30/1996 14,829.49 14,560.36 15,609.82
10/31/1996 15,134.50 14,770.03 16,040.65
11/30/1996 15,262.76 15,703.49 17,253.33
12/31/1996 16,272.08 15,406.70 16,911.71
1/31/1997 16,939.81 16,215.55 17,968.69
2/28/1997 17,080.39 16,090.69 16,108.85
3/31/1997 18,389.21 15,353.74 17,364.58
4/30/1997 18,740.55 16,029.30 16,401.24
5/31/1997 18,333.89 17,138.53 18,521.88
6/30/1997 19,060.22 17,779.51 20,398.41
7/31/1997 20,407.44 19,253.43 22,022.12
8/30/1997 19,785.38 18,541.05 20,788.88
9/30/1997 20,993.35 19,601.60 21,928.11
10/31/1997 19,759.95 18,968.47 21,195.71
11/30/1997 19,683.65 19,404.75 22,177.06
12/30/1997 19,776.48 19,732.69 22,559.52
1/31/1998 19,369.66 19,864.90 22,808.92
2/28/1998 21,023.17 21,265.37 24,453.44
3/31/1998 21,876.17 22,175.53 25,705.46
4/30/1998 22,282.98 22,412.81 25,964.06
5/31/1998 21,088.78 21,861.45 25,517.48
6/30/1998 21,259.38 22,805.87 26,554.00
7/31/1998 20,196.41 22,569.39 26,272.52
8/31/1998 16,968.14 18,945.68 22,478.77
9/30/1998 18,096.72 20,208.54 23,912.92
10/31/1998 19,645.24 21,607.62 25,859.43
11/30/1998 20,104.55 22,894.97 27,429.10
12/31/1998 20,986.53 24,808.80 29,036.44
Annualized One Year
Since Inception Total Return
Total Returns for Period Ending December 31,
1998
Jurika & Voyles Value + Growth Fund 19.03% 6.12%
Lipper Analytical Services, Inc., Growth Index 23.81% 25.69%
Lipper Analytical Services, Inc., Cap Apprec.
Index 19.66% 19.98%
S&P 500 Index 28.47% 28.57%
<CAPTION>
Lipper Analytical Services,
Inc.
Capital Appreciation Index
<S> <C>
9/30/1994 10,000.00
10/31/1994 10,117.44
11/30/1994 9,768.47
12/31/1994 9,857.56
1/31/1995 9,911.78
2/28/1995 10,273.39
3/31/1995 10,545.05
4/30/1995 10,726.86
5/31/1995 10,995.36
6/30/1995 11,531.70
7/31/1995 12,211.53
8/31/1995 12,346.40
9/30/1995 12,668.26
10/31/1995 12,420.54
11/30/1995 12,878.81
12/31/1995 12,972.01
1/31/1996 13,218.77
2/29/1996 13,547.71
3/31/1996 13,686.71
4/30/1996 14,265.86
5/31/1996 14,683.70
6/30/1996 14,289.90
7/31/1996 13,243.29
8/31/1996 13,834.32
9/30/1996 14,636.57
10/31/1996 14,449.11
11/30/1996 15,076.54
12/31/1996 14,912.16
1/31/1997 15,527.04
2/28/1997 15,040.14
3/31/1997 14,237.98
4/30/1997 14,521.62
5/31/1997 15,737.59
6/30/1997 16,427.09
7/31/1997 17,617.97
8/30/1997 17,287.58
9/30/1997 18,324.23
10/31/1997 17,594.40
11/30/1997 17,629.84
12/30/1997 17,889.63
1/31/1998 17,895.76
2/28/1998 19,271.99
3/31/1998 20,176.64
4/30/1998 20,367.45
5/31/1998 19,714.45
6/30/1998 20,517.65
7/31/1998 19,956.51
8/31/1998 16,527.29
9/30/1998 17,573.23
10/31/1998 18,584.02
11/30/1998 19,660.23
12/31/1998 21,464.64
Total Returns for Period Ending December 31,
1998
Jurika & Voyles Value + Growth Fund
Lipper Analytical Services, Inc., Growth Index
Lipper Analytical Services, Inc., Cap Apprec.
Index
S&P 500 Index
</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 December 31, 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 fees and expenses in excess of
certain 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. Lipper Capital Appreciation Fund Index is an
unmanaged, net asset value weighted index of 30 mutual funds that invests
primarily in companies of all market capitalization with an emphasis on maximum
capital appreciation. 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.
9
<PAGE>
PERFORMANCE
-------------------------------------------------
Balanced Fund (FIXED INCOME PORTION)
1998 Review
- -----------
Early in 1998 the fixed income component of the Fund was positioned primarily in
higher quality Treasury and short-term corporate issues. When spreads between
corporate and Treasury issues began widening during the second and third
quarters of 1998, the Fund was well positioned to take advantage of the
situation. We began adding mortgage, agency and credit sensitive issues that
were relatively inexpensive, allowing us to diversify the portfolio and provide
clients with better current value and potential return. This decision was
rewarded as credit sensitive and long corporate issues enjoyed good returns as
the spreads between Corporates and Treasuries narrowed near the end of the year.
The net result is that fixed income positively complemented the equity portion
of the Fund, providing value, capital appreciation and income to investors.
1999 Outlook
- ------------
As we mentioned previously, spreads between corporate and Treasury issues
widened during 1998 in recognition that overall economic activity is slowing.
Thanks to the Fed, liquidity and confidence have been restored to the debt
markets and the new issuance of corporate bonds has returned to normal levels.
We are optimistic that the corporate and mortgage-related securities we
currently hold will offer our investors the best available value in the coming
months. We expect stable to down rates for the year, which we think will provide
a good environment for how we have positioned the fixed income portion of the
Fund.
10
<PAGE>
PERFORMANCE
-------------------------------------------------
Balanced Fund
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Lipper Analytical Services,
Jurika & Voyles Inc.
Balanced Fund Balanced Index
<S> <C> <C>
3/9/92 $10,000.00 $10,000.00
3/31/92 9,940.00 10,000.00
4/30/92 10,100.16 10,108.00
5/31/92 10,170.23 10,239.40
6/30/92 10,162.22 10,160.56
7/31/92 10,544.19 10,459.28
8/31/92 10,493.93 10,362.01
9/30/92 10,720.09 10,481.17
10/31/92 10,942.16 10,482.22
11/30/92 11,315.65 10,721.22
12/31/92 11,546.81 10,874.53
1/31/93 11,850.67 11,020.25
2/28/93 11,789.90 11,156.90
3/30/93 12,118.07 11,386.73
4/30/93 11,985.91 11,299.05
5/31/93 12,107.91 11,496.79
6/30/93 12,332.58 11,618.65
7/31/93 12,536.42 11,665.13
8/31/93 12,862.57 12,017.41
9/30/93 13,060.30 12,043.85
10/31/93 13,111.44 12,167.90
11/30/93 13,009.17 11,973.22
12/31/93 13,512.35 12,174.37
1/31/94 13,813.78 12,493.34
2/28/94 13,792.99 12,248.47
3/30/94 13,330.45 11,803.85
4/30/94 13,372.21 11,829.82
5/31/94 13,340.89 11,920.91
6/30/94 13,215.63 11,713.48
7/31/94 13,383.58 11,978.21
8/31/94 13,719.48 12,277.66
9/30/94 13,544.18 12,056.66
10/31/94 13,304.07 12,094.04
11/30/94 12,933.00 11,815.88
12/31/94 13,215.67 11,929.31
1/31/95 13,270.83 12,077.23
2/28/95 13,822.40 12,428.68
3/30/95 14,142.31 12,648.67
4/30/95 14,530.53 12,886.46
5/31/95 15,140.59 13,298.83
6/30/95 15,573.18 13,534.22
7/31/95 16,019.40 13,819.79
8/31/95 16,309.45 13,927.58
9/30/95 16,480.13 14,260.45
10/31/95 15,961.25 14,224.80
11/30/95 16,513.97 14,667.19
12/31/95 16,573.75 14,897.47
1/31/96 16,597.31 15,165.62
2/29/96 16,927.14 15,173.21
3/30/96 17,049.65 15,230.86
4/30/96 17,642.47 15,331.39
5/31/96 17,891.46 15,487.77
6/30/96 17,528.65 15,538.88
7/31/96 16,860.44 15,139.53
8/31/96 17,480.92 15,378.73
9/30/96 17,966.57 15,947.75
10/31/96 18,302.84 16,285.84
11/30/96 19,271.50 17,044.76
12/31/96 19,139.60 16,835.11
1/31/97 19,802.78 17,350.26
2/28/97 20,068.06 17,414.46
3/31/97 19,536.18 16,907.70
4/30/97 20,043.96 17,416.62
5/31/97 20,992.71 18,128.96
6/30/97 21,580.67 18,718.15
7/31/97 22,548.91 19,783.21
8/31/97 22,172.13 19,156.09
9/30/97 22,996.70 19,920.41
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
2/28/98 23,085.26 21,153.72
3/31/98 23,682.37 21,801.02
4/30/98 23,986.18 21,951.45
5/31/98 23,317.79 21,729.74
6/30/98 23,513.60 22,159.00
7/31/98 22,813.06 21,928.07
8/30/98 20,878.98 20,038.99
9/30/98 21,847.54 20,903.90
10/30/1998 22,936.09 21,685.93
11/30/1998 23,273.38 22,479.72
12/31/1998 23,949.00 23,309.04
Annualized One Year
Since Inception* Total Return
Total Returns for Period Ending December 31, 1998
Jurika & Voyles Balanced Fund 13.67% 7.24%
Lipper Analytical Services, Inc., Balanced Index 13.34% 15.09%
60% S&P 500/40% Lehman Bros. Gov't/Corp. Int. Bond Index 15.44% 20.86%
<CAPTION>
60% S&P 500/40% Lehman
Bros. Gov't/Corp. Int. Bond
Index
<S> <C>
3/9/92 $10,000.00
3/31/92 9,994.00
4/30/92 10,205.47
5/31/92 10,298.75
6/30/92 10,267.65
7/31/92 10,601.35
8/31/92 10,513.36
9/30/92 10,644.35
10/31/92 10,610.72
11/30/92 10,811.05
12/31/92 10,948.78
1/31/93 11,089.36
2/28/93 11,249.94
3/30/93 11,410.36
4/30/93 11,281.19
5/31/93 11,452.67
6/30/93 11,544.52
7/31/93 11,527.90
8/31/93 11,863.36
9/30/93 11,828.48
10/31/93 11,988.16
11/30/93 11,892.98
12/31/93 12,001.20
1/31/94 12,299.31
2/28/94 12,026.51
3/30/94 11,632.53
4/30/94 11,690.22
5/31/94 11,808.53
6/30/94 11,635.42
7/31/94 11,931.42
8/31/94 12,239.73
9/30/94 12,015.50
10/31/94 12,177.22
11/30/94 11,889.36
12/31/94 12,011.58
1/31/95 12,279.44
2/28/95 12,668.45
3/30/95 12,921.56
4/30/95 13,213.07
5/31/95 13,689.80
6/30/95 13,917.05
7/31/95 14,194.84
8/31/95 14,267.80
9/30/95 14,670.15
10/31/95 14,703.60
11/30/95 15,167.94
12/31/95 15,407.29
1/31/96 15,774.60
2/29/96 15,788.80
3/30/96 15,847.53
4/30/96 15,965.12
5/31/96 16,206.19
6/30/96 16,311.86
7/31/96 15,898.84
8/31/96 16,105.21
9/30/96 16,738.79
10/31/96 17,134.49
11/30/96 18,002.18
12/31/96 17,742.23
1/31/97 18,435.24
2/28/97 18,535.53
3/31/97 18,027.28
4/30/97 18,757.39
5/31/97 19,505.06
6/30/97 20,101.52
7/31/97 21,224.80
8/31/97 20,469.19
9/30/97 21,796.20
10/31/97
11/30/97
12/31/97
1/31/98 22,055.18
2/28/98 23,002.23
3/31/98 23,738.30
4/30/98 23,929.06
5/31/98 23,751.99
6/30/98 24,391.67
7/31/98 24,270.69
8/30/98 22,320.30
9/30/98 23,398.82
10/30/1998 24,532.25
11/30/1998 25,415.91
12/31/1998 26,299.36
Total Returns for Period Ending December 31, 1998
Jurika & Voyles Balanced Fund
Lipper Analytical Services, Inc., Balanced Index
60% S&P 500/40% Lehman Bros. Gov't/Corp. Int. Bond Index
</TABLE>
This graph is furnished to you in accordance with SEC regulations. It compares a
$10,000 investment in Jurika & Voyles Balanced Fund with a similar investment in
a model index consisting of 60% Standard & Poor's ("S&P") 500 Index and 40%
Lehman Brothers Government/Corporate Intermediate Bond Index, and Lipper
Balanced Fund Index from the inception of the Fund on March 9, 1992 through
December 31, 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 fees and expenses in excess of
certain 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.
11
<PAGE>
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1998
(UNAUDITED)
----------------------------------------------------------
Mini-Cap Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- --------- ------------
<S> <C> <C>
COMMON STOCKS - 97.59
BASIC INDUSTRIES
Chemicals - 2.86%
OM Group, Inc........................ 20,000 $ 730,000
R.P.M., Inc.......................... 25,300 404,800
------------
1,134,800
------------
Iron & Steel - 1.09%
*RTI International Metals, Inc....... 30,900 432,600
------------
Paper & Pulp - 0.69%
*Asia Pulp & Paper Ltd............... 33,700 275,919
------------
TOTAL BASIC INDUSTRIES.......................... 1,843,319
------------
COMMUNICATIONS
Communication Equipment - 4.37%
*Aspect Telecommunications Corp...... 35,000 603,750
ECI Telecom, Limited................. 22,200 790,875
Tekelec, Inc......................... 20,700 342,844
------------
1,737,469
------------
CONSUMER CYCLICALS
Homebuildings - 2.61%
*Dal Tile International, Inc......... 100,000 1,037,500
------------
Retail: Apparel - 1.58%
Pacific Sunwear of California........ 27,200 445,400
Warnaco Group........................ 7,200 181,800
------------
627,200
------------
Retail: Shoes - 3.34%
Wolverine World Wide, Inc............ 100,000 1,325,000
------------
Retail: Specialty - 9.22%
*Blyth Industries, Inc............... 12,000 375,000
*Cost Plus, Inc...................... 22,500 705,938
*General Nutrition Companies, Inc.... 82,400 1,339,000
Pier 1 Imports, Inc.................. 78,200 757,562
*The Dress Barn...................... 32,000 486,000
------------
3,663,500
------------
TOTAL CONSUMER CYCLICALS........................ 6,653,200
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1998
(UNAUDITED)
----------------------------------------------------------
Mini-Cap Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- --------- ------------
<S> <C> <C>
CONSUMER SERVICES
Entertainment - 2.30%
*GTECH Holdings Corp................. 35,700 $ 914,813
------------
CONSUMER STAPLES
Cosmetics - 2.92%
Helen of Troy, Limited............... 79,100 1,161,781
------------
ENERGY
Oil: Integrated Domestic - 2.35%
Snyder Oil Corp...................... 70,000 931,875
------------
Oil & Gas Services - 3.00%
Pride International, Inc............. 56,800 401,150
Santa Fe International Corp.......... 40,000 585,000
*Veritas DGC, Inc.................... 15,900 206,700
------------
1,192,850
------------
Natural Gas - 1.83%
K. N. Energy, Inc.................... 20,000 727,500
------------
TOTAL ENERGY.................................... 2,852,225
------------
FINANCIAL
Banks: Savings & Loan - 1.47%
Western Bancorp...................... 20,000 585,000
------------
HEALTHCARE PRODUCTS
Drugs - 2.23%
*Dura Pharmaceuticals, Inc........... 30,000 455,625
ICN Pharmaceuticals, Inc............. 19,000 429,875
------------
885,500
------------
Medical Products - 1.43%
*Atrix Labs, Inc..................... 44,200 392,275
*Biomatrix, Inc...................... 3,000 174,750
------------
567,025
------------
TOTAL HEALTHCARE PRODUCTS....................... 1,452,525
------------
HEALTHCARE SERVICES
HMOs - 2.97%
*Physicians Reliance Network......... 90,000 1,181,250
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1998
(UNAUDITED)
----------------------------------------------------------
Mini-Cap Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- --------- ------------
<S> <C> <C>
Hospitals\Long Term Care - 4.81%
*Assisted Living Concepts, Inc....... 62,700 $ 822,938
Integrated Health Services, Inc...... 77,000 1,087,625
------------
1,910,563
------------
TOTAL HEALTHCARE SERVICES....................... 3,091,813
------------
INDUSTRIAL PRODUCTS
Aerospace\Defense - 1.56%
Doncasters Plc....................... 38,200 618,363
------------
Electronics Equipment - 1.50%
General Cable Corp................... 29,000 594,500
------------
Electronics Instruments - 0.69%
General Scanning, Inc................ 45,500 275,843
------------
Machinery - 1.15%
*Gardner Denver Machinery, Inc....... 31,000 457,250
------------
Manufacturing: Diversified - 0.79%
*Wolverine Tube, Inc................. 15,000 315,000
------------
TOTAL INDUSTRIAL PRODUCTS....................... 2,260,956
------------
INDUSTRIAL SERVICES
Distribution - 1.82%
Daisytek International Corp.......... 38,000 722,000
------------
Special Printing - 2.19%
*Zebra Technologies Corp............. 30,300 871,125
------------
Special Services - 10.18%
*Corrections Corp. of America........ 50,000 881,250
*Remedy Corp......................... 134,000 1,867,625
*Republic Services, Inc.............. 27,000 497,813
*Interim Services, Inc............... 34,100 797,088
------------
4,043,776
------------
TOTAL INDUSTRIAL SERVICES....................... 5,636,901
------------
INSURANCE
Property\Casualty Insurance - 11.32%
ESG Re Limited....................... 53,600 1,085,400
Fremont General Corp................. 42,000 1,039,500
HCC Insurance Holdings, Inc.......... 57,800 1,018,725
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1998
(UNAUDITED)
----------------------------------------------------------
Mini-Cap Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- --------- ------------
<S> <C> <C>
Property\Casualty Insurance - 11.32%--Continued
Mercury General Corp................. 30,900 $ 1,353,806
------------
4,497,431
------------
REAL ESTATE INVESTMENT TRUSTS - 2.53%
Glenborough Realty Trust, Inc........ 11,000 224,125
Golf Trust of America, Inc........... 28,000 777,000
------------
1,001,125
------------
TECHNOLOGY
Software - 10.83%
*Activision, Inc..................... 42,000 467,250
*Aspen Technology, Inc............... 10,000 145,000
*Check Point Software Techonologies
Ltd................................. 39,000 1,786,688
*Symantec Corp....................... 25,000 543,751
*Synopsys, Inc....................... 25,000 1,356,251
------------
4,298,940
------------
TRANSPORTATION
Railroad - 1.96%
Genesee & Wyoming, Inc............... 60,900 776,471
------------
TOTAL COMMON STOCKS (Cost $39,804,289).......... 38,763,969
------------
TOTAL INVESTMENTS - 97.59%
(Cost $39,804,289)............................. 38,763,969
------------
Cash and Other Assets, Net of Liabilities -
2.41%.......................................... 955,778
------------
NET ASSETS - 100.00%.............................. $ 39,719,747
------------
------------
</TABLE>
* INDICATES NON-INCOME PRODUCING SECURITY.
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1998
(UNAUDITED)
----------------------------------------------------------
Value+Growth Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- ---------- -----------
<S> <C> <C>
COMMON STOCKS - 93.03%
BASIC INDUSTRIES
Aluminum - 0.92%
Reynolds Metals Co................... 6,800 $ 358,275
-----------
Chemicals - 1.10%
OM Group, Inc........................ 11,750 428,875
-----------
TOTAL BASIC INDUSTRIES........................... 787,150
-----------
COMMUNICATIONS
Telecommunications Equipment - 6.32%
ECI Telecom, Limited................. 24,400 869,250
*3Com Corp........................... 35,350 1,584,122
-----------
2,453,372
-----------
Wireless Service - 2.44%
SBC Communications, Inc.............. 17,700 949,162
-----------
TOTAL COMMUNICATIONS............................. 3,402,534
-----------
CONSUMER CYCLICALS
Retail: Food - 3.54%
American Stores Co................... 27,300 1,008,394
Hannaford Brothers Co................ 6,900 365,700
-----------
1,374,094
-----------
Retail: Specialty - 4.07%
Circuit City Stores, Inc............. 21,400 1,068,662
-----------
Toys - 1.46%
Mattel, Inc.......................... 24,800 565,750
-----------
TOTAL CONSUMER CYCLICALS......................... 3,008,506
-----------
CONSUMER SERVICES
Entertainment - 0.90%
*GTECH Holdings Corp................. 13,600 348,500
-----------
Leisure - 1.26%
*Sabre Group Holdings, Inc........... 11,000 489,500
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1998
(UNAUDITED)
----------------------------------------------------------
Value+Growth Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- ---------- -----------
<S> <C> <C>
Publishing - 1.65%
McGraw-Hill Companies, Inc........... 6,300 $ 641,813
-----------
TOTAL CONSUMER SERVICES.......................... 1,479,813
-----------
CONSUMER STAPLES
Household Products - 1.32%
Newell & Co.......................... 12,400 511,500
-----------
ENERGY
Natural Gas - 4.23%
Enron Corp........................... 19,100 1,089,894
K.N. Energy, Inc..................... 15,200 552,900
-----------
1,642,794
-----------
Oil and Gas Services - 1.89%
Santa Fe International Corp.......... 29,000 424,125
*Weatherford International, Inc...... 15,992 309,845
-----------
733,970
-----------
Oil: Integrated Domestic - 2.43%
Ultramar Diamond Shamrock............ 17,200 417,100
Vastar Resources, Inc................ 12,200 526,888
-----------
943,988
-----------
Oil: Integrated International - 1.93%
Texaco, Inc.......................... 14,200 750,824
-----------
TOTAL ENERGY..................................... 4,071,576
-----------
FINANCIAL
Banks: Regional - 2.96%
First Union Corp..................... 18,900 1,149,356
-----------
Banks: Savings & Loan - 2.07%
Washington Mutual, Inc............... 21,050 803,847
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1998
(UNAUDITED)
----------------------------------------------------------
Value+Growth Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- ---------- -----------
<S> <C> <C>
Miscellaneous Finance - 1.65%
CIT Group, Inc....................... 20,200 $ 642,612
-----------
TOTAL FINANCIAL.................................. 2,595,816
-----------
HEALTHCARE PRODUCTS
Medical Products - 4.00%
Baxter International, Inc............ 18,100 1,164,056
*Elan Plc............................ 5,600 389,550
-----------
1,553,606
-----------
HEALTHCARE SERVICES
Hospitals/Long-Term Care - 2.15%
*Tenet HealthCare Corp............... 31,800 834,750
-----------
INDUSTRIAL PRODUCTS
Aerospace/Defense - 1.48%
Lockheed Martin Corp................. 6,800 576,300
-----------
Machinery - 2.39%
Case Corp............................ 28,900 630,381
Deere & Co........................... 9,000 298,125
-----------
928,506
-----------
Manufacturing - Diversified - 2.25%
Parker Hannifin Corp................. 26,650 872,788
-----------
Office Equipment - 3.98%
Xerox Corp........................... 13,100 1,545,800
-----------
TOTAL INDUSTRIAL PRODUCTS........................ 3,923,394
-----------
INSURANCE
Life Insurance - 1.52%
Reliastar Financial Corp............. 12,800 590,400
-----------
Multi-Line Insurance - 4.13%
Cigna Corp........................... 14,100 1,090,106
Provident Companies, Inc............. 12,400 514,600
-----------
1,604,706
-----------
Property/Casualty Insurance - 1.49%
*Amerin Corp......................... 8,200 193,725
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1998
(UNAUDITED)
----------------------------------------------------------
Value+Growth Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- ---------- -----------
<S> <C> <C>
Property/Casualty Insurance - 1.49%--Continued
Travelers Property Casualty Corp..... 12,400 $ 384,400
-----------
578,125
-----------
TOTAL INSURANCE.................................. 2,773,231
-----------
REAL ESTATE INVESTMENT TRUSTS - 4.31%
Avalonbay Communities, Inc........... 8,500 291,125
Equity Residential Properties,
Trust............................... 10,700 432,681
Prologis Trust....................... 17,700 367,275
Public Storage, Inc.................. 10,900 294,981
Spieker Properties, Inc.............. 8,300 287,388
-----------
1,673,450
-----------
TECHNOLOGY
Hardware - 1.12%
*Sun Microsystems, Inc............... 5,100 436,688
-----------
Semiconductors - 1.45%
Texas Instruments, Inc............... 6,600 564,712
-----------
Software - 14.11%
*Electronic Arts..................... 22,100 1,240,363
Electronic Data Systems Corp......... 22,200 1,115,550
First Data Corp...................... 43,600 1,381,575
HBO & Co............................. 23,100 662,681
*Synopsys, Inc....................... 24,100 1,307,425
-----------
5,707,594
-----------
TOTAL TECHNOLOGY................................. 6,708,994
-----------
TRANSPORTATION
Airlines - 0.99%
Southwest Airlines Co................ 17,200 385,925
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1998
(UNAUDITED)
----------------------------------------------------------
Value+Growth Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- ---------- -----------
<S> <C> <C>
Miscellaneous Transportation - 2.70%
*FDX Corp............................ 11,800 $ 1,050,200
-----------
TOTAL TRANSPORTATION............................. 1,436,125
-----------
UTILITIES
Utility Service Providers - 3.54%
*AES Corp............................ 29,000 1,373,875
-----------
TOTAL COMMON STOCKS (Cost $33,156,889)........... 36,134,320
-----------
<CAPTION>
Par Value
----------
<S> <C> <C>
REPURCHASE AGREEMENT - 7.37%
State Street Bank & Trust Co.
$2,863,000 at 3.25% (Agreement dated
December 31, 1998; to be repurchased
at $2,864,034 on 1/04/99;
collateralized by U.S. Treasury
Bonds due 8/15/15) (Value
$2,929,500) (Cost $2,863,000)....... $2,863,000 2,863,000
-----------
TOTAL INVESTMENTS - 100.41% (Cost $36,019,889)... 38,997,320
-----------
Liabilities in Excess of Cash and Other Assets -
(0.41%)......................................... (157,656)
-----------
NET ASSETS - 100.00%............................... $38,839,664
-----------
-----------
</TABLE>
* INDICATES NON-INCOME PRODUCING SECURITY.
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1998
(UNAUDITED)
----------------------------------------------------------
Balanced Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- ----------- -----------
<S> <C> <C>
COMMON STOCKS - 58.05%
BASIC INDUSTRIES
Aluminum - 0.60%
Reynolds Metals Co................... 7,000 $ 368,813
-----------
Chemicals - 0.69%
OM Group, Inc........................ 11,600 423,400
-----------
TOTAL BASIC INDUSTRIES............................ 792,213
-----------
COMMUNICATIONS
Telecommunications Equipment - 3.91%
ECI Telecom, Limited................. 24,800 883,500
*3Com Corp........................... 33,775 1,513,542
-----------
2,397,042
-----------
Wireless Service - 1.74%
SBC Communications, Inc.............. 19,900 1,067,138
-----------
TOTAL COMMUNICATIONS.............................. 3,464,180
-----------
CONSUMER CYCLICALS
Retail: Food - 2.10%
American Stores Co................... 27,500 1,015,781
Hannaford Brothers Co................ 5,200 275,600
-----------
1,291,381
-----------
Retail: Specialty - 1.73%
Circuit City Stores, Inc............. 21,300 1,063,669
-----------
Toys - 0.93%
Mattel, Inc.......................... 25,000 570,313
-----------
TOTAL CONSUMER CYCLICALS.......................... 2,925,363
-----------
CONSUMER SERVICES
Entertainment - 0.52%
*GTECH Holdings Corp................. 12,500 320,313
-----------
Leisure - 0.94%
*Sabre Group Holdings, Inc........... 13,000 578,500
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1998
(UNAUDITED)
----------------------------------------------------------
Balanced Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- ----------- -----------
<S> <C> <C>
Publishing - 1.00%
McGraw-Hill Companies, Inc........... 6,000 $ 611,250
-----------
TOTAL CONSUMER SERVICES........................... 1,510,063
-----------
CONSUMER STAPLES
Household Products - 0.81%
Newell & Co.......................... 12,100 499,125
-----------
ENERGY
Natural Gas - 2.86%
Enron Corp........................... 20,400 1,164,075
K.N. Energy, Inc..................... 16,200 589,275
-----------
1,753,350
-----------
Oil and Gas Services - 1.13%
Santa Fe International Corp.......... 25,500 372,938
*Weatherford International........... 16,592 321,470
-----------
694,408
-----------
Oil: Integrated Domestic - 1.42%
Ultramar Diamond Shamrock............ 14,600 354,050
Vastar Resources, Inc................ 12,000 518,250
-----------
872,300
-----------
Oil: Integrated International - 1.34%
Texaco, Inc.......................... 15,600 824,850
-----------
TOTAL ENERGY...................................... 4,144,908
-----------
FINANCIAL
Banks: Regional - 1.68%
First Union Corp..................... 17,000 1,033,813
-----------
Banks: Savings & Loan - 1.41%
Washington Mutual, Inc............... 22,650 864,947
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1998
(UNAUDITED)
----------------------------------------------------------
Balanced Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- ----------- -----------
<S> <C> <C>
Miscellaneous Finance - 1.02%
CIT Group, Inc....................... 19,700 $ 626,706
-----------
TOTAL FINANCIAL................................... 2,525,466
-----------
HEALTHCARE PRODUCTS
Medical Products - 2.51%
Baxter International, Inc............ 17,800 1,144,763
*Elan Corp. Plc...................... 5,700 396,506
-----------
1,541,269
-----------
HEALTHCARE SERVICES
Hospitals/Long-Term Care - 1.33%
*Tenet HealthCare Corp............... 31,100 816,375
-----------
INDUSTRIAL PRODUCTS
Aerospace/Defense - 0.91%
Lockheed Martin Corp................. 6,600 559,350
-----------
Machinery - 1.35%
Case Corp............................ 26,000 567,125
Deere & Co........................... 7,900 261,688
-----------
828,813
-----------
Manufacturing - Diversified - 1.29%
Parker Hannifin Corp................. 24,200 792,550
-----------
Office Equipment - 2.54%
Xerox Corp........................... 13,200 1,557,600
-----------
TOTAL INDUSTRIAL PRODUCTS......................... 3,738,313
-----------
INSURANCE
Life Insurance - 1.01%
Reliastar Financial Corp............. 13,400 618,075
-----------
Multi-Line Insurance - 2.41%
Cigna Corp........................... 12,700 981,869
Provident Companies, Inc............. 12,000 498,000
-----------
1,479,869
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1998
(UNAUDITED)
----------------------------------------------------------
Balanced Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- ----------- -----------
<S> <C> <C>
Property/Casualty Insurance - 0.81%
*Amerin Corp......................... 7,000 $ 165,375
Travelers Property Casualty Corp..... 10,800 334,800
-----------
500,175
-----------
TOTAL INSURANCE................................... 2,598,119
-----------
REAL ESTATE INVESTMENT TRUSTS - 2.55%
Avalonbay Communities, Inc........... 8,300 284,275
Equity Residential Properties
Trust............................... 8,700 351,806
Prologis Trust....................... 17,300 358,975
Public Storage, Inc.................. 10,600 286,863
Spieker Properties, Inc.............. 8,100 280,463
-----------
1,562,382
-----------
TECHNOLOGY
Hardware - 0.68%
*Sun Microsystems, Inc............... 4,900 419,563
-----------
Semiconductors - 0.98%
Texas Instruments, Inc............... 7,000 598,938
-----------
Software - 9.33%
*Electronic Arts, Inc................ 21,300 1,195,463
Electronic Data Systems Corp......... 23,800 1,195,950
First Data Corp...................... 42,900 1,359,394
HBO & Co............................. 22,500 645,468
*Synopsys, Inc....................... 24,500 1,329,125
-----------
5,725,400
-----------
TOTAL TECHNOLOGY.................................. 6,743,901
-----------
TRANSPORTATION
Airlines - 0.60%
Southwest Airlines................... 16,500 370,218
-----------
Miscellaneous Transportation - 1.67%
*FDX Corp............................ 11,500 1,023,500
-----------
TOTAL TRANSPORTATION.............................. 1,393,718
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1998
(UNAUDITED)
----------------------------------------------------------
Balanced Fund
<TABLE>
<CAPTION>
Number of
Description Shares Value
- --------------------------------------- ----------- -----------
<S> <C> <C>
UTILITIES
Utility Service Providers - 2.25%
*AES Corp............................ 29,100 $ 1,378,608
-----------
TOTAL COMMON STOCKS (Cost $29,531,684)............ 35,634,003
-----------
<CAPTION>
Par Value
-----------
<S> <C> <C>
CORPORATE BONDS - 20.07%
Basic Industries - 3.82%
Ball Corp.
7.750%, 08/01/06.................... $ 1,200,000 1,263,000
Glatfelter P. H. Co.
6.875%, 07/15/07.................... 1,000,000 1,081,253
-----------
2,344,253
-----------
Computers - 2.42%
International Business Machines
5.945%, 05/14/01.................... 1,450,000 1,483,555
-----------
Entertainment - 1.78%
Viacom International, Inc.
7.750%, 06/01/05.................... 1,000,000 1,093,578
-----------
Financial Services - 6.01%
Associates Corp.
5.875%, 05/16/01.................... 1,350,000 1,367,201
Ford Motor Credit Corp.
8.200%, 02/15/02.................... 1,350,000 1,454,887
PaineWebber Group, Inc.
9.250%, 12/15/01.................... 800,000 867,214
-----------
3,689,302
-----------
Oil & Gas Services - 0.82%
Gulf CDA Resources, Limited
9.000%, 08/15/99.................... 500,000 505,000
-----------
Retail: Food - 3.25%
Coca Cola Enterprises, Inc.
6.375%, 8/01/01..................... 960,000 985,628
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE>
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1998
(UNAUDITED)
----------------------------------------------------------
Balanced Fund
<TABLE>
<CAPTION>
Description Par Value Value
- --------------------------------------- ----------- -----------
Retail: Food - 3.25%--Continued
<S> <C> <C>
Safeway, Inc.
6.050%, 11/15/03.................... $ 1,000,000 $ 1,012,048
-----------
1,997,676
-----------
Retail - 1.97%
Wal Mart Stores, Inc.
8.625%, 04/01/01.................... 1,125,000 1,207,392
-----------
TOTAL CORPORATE BONDS (cost $11,994,423).......... 12,320,756
-----------
MORTGAGE BACKED SECURITIES - 3.59%
Federal Home Loan Mortgage Corporation
7.500%, 04/01/28..................... 938,381 963,596
6.000%, 07/01/28..................... 1,252,972 1,237,699
-----------
2,201,295
-----------
U.S. GOVERNMENT AGENCIES - 6.86%
Federal Home Loan Mortgage Corporation - 2.00%
5.750%, 04/15/08..................... 1,185,000 1,225,190
-----------
Federal National Mortgage Association - 4.86%
5.750%, 04/15/03..................... 1,730,000 1,775,964
5.750%, 06/15/05..................... 1,170,000 1,208,042
-----------
2,984,006
-----------
TOTAL U.S. GOVERNMENT AGENCIES (cost
$6,318,040)...................................... 4,209,196
-----------
U.S. TREASURY OBLIGATIONS - 8.39%
U. S. Treasury Bonds - 4.05%
7.500%, 11/15/16..................... 2,000,000 2,485,394
-----------
U. S. Treasury Notes - 2.93%
7.500%, 11/15/01..................... 1,150,000 1,238,301
7.250%, 05/15/04..................... 500,000 560,323
-----------
1,798,624
-----------
U.S. Treasury Strips - 1.41%
0.00%, 11/15/09...................... 1,500,000 864,727
-----------
TOTAL U.S. TREASURY OBLIGATIONS (Cost
$4,971,519)...................................... 5,148,745
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE>
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1998
(UNAUDITED)
----------------------------------------------------------
Balanced Fund
<TABLE>
<CAPTION>
Description Par Value Value
- --------------------------------------- ----------- -----------
REPURCHASE AGREEMENT - 2.98%
<S> <C> <C>
State Street Bank & Trust Co.
$1,828,000 at 3.25% (Agreement dated
December 31, 1998; to be repurchased
at $1,828,660 on 1/04/99;
collateralized by U.S. Treasury
Bonds due 8/15/15) (Value
$1,871,625) (Cost $1,828,000)....... $ 1,828,000 $ 1,828,000
-----------
TOTAL INVESTMENTS - 99.94% (Cost $54,643,666)..... 61,341,995
-----------
Cash and Other Assets, Net of Liabilities -
0.06%............................................ 37,998
-----------
NET ASSETS - 100.00%................................ $61,379,993
-----------
-----------
</TABLE>
* INDICATES NON-INCOME PRODUCING SECURITY.
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
(UNAUDITED)
----------------------------------------------------------
<TABLE>
<CAPTION>
Mini-Cap Value+ Balanced
Fund Growth Fund Fund
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS
Investments in securities at market value
(cost of $39,804,289, $36,019,889,
$54,643,666) $ 38,763,969 $38,997,320 $ 61,341,995
Cash 19,639 215 561
Receivables:
Investment securities sold 791,783 478,499 495,288
Income receivable 27,310 35,474 336,247
Fund shares sold 521,970 15,790 3,054
Prepaid expenses 8,618 6,712 6,884
Deferred organization costs 6,857 6,857 2,244
------------ ------------ ------------
Total assets 40,140,146 39,540,867 62,186,273
------------ ------------ ------------
LIABILITIES
Payables:
Investment securities purchased -- 631,882 615,470
Fund shares repurchased 308,984 3,509 107,249
Investment advisory fees 11,941 14,872 21,403
Shareholder servicing fees 8,572 7,949 8,792
Accrued expenses 90,902 42,991 53,366
------------ ------------ ------------
Total liabilities 420,399 701,203 806,280
------------ ------------ ------------
NET ASSETS $ 39,719,747 $38,839,664 $ 61,379,993
------------ ------------ ------------
------------ ------------ ------------
COMPOSITION OF NET ASSETS
Paid-in capital $ 45,127,724 $36,077,857 $ 54,782,821
Undistributed net investment income
(loss) (119,606) 58,476 (20,538)
Accumulated net realized gain (loss) (4,248,051) (274,100) (80,619)
Net unrealized appreciation
(depreciation) (1,040,320) 2,977,431 6,698,329
------------ ------------ ------------
NET ASSETS $ 39,719,747 $38,839,664 $ 61,379,993
------------ ------------ ------------
------------ ------------ ------------
Number of shares, $0.01 par value, issued
and outstanding (unlimited shares
authorized) 2,758,726 2,597,525 4,241,914
------------ ------------ ------------
------------ ------------ ------------
NET ASSET VALUE PER SHARE $ 14.40 $ 14.95 $ 14.47
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE>
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1998
(UNAUDITED)
----------------------------------------------------------
<TABLE>
<CAPTION>
Mini-Cap Value+ Balanced
Fund Growth Fund Fund
------------ ------------ -----------
<S> <C> <C> <C>
INVESTMENT INCOME
Income
Dividend income $ 238,701 $ 238,565 $ 215,909
Interest income 43,336 65,503 823,518
------------ ------------ -----------
Total income 282,037 304,068 1,039,427
------------ ------------ -----------
Expenses (note 3)
Investment advisory fees 265,058 166,269 216,209
Shareholder service fees 66,265 43,394 52,508
Administration fees 43,284 25,206 25,206
Custodian fees 26,053 20,165 22,685
Professional fees 20,141 10,440 14,790
Transfer agent fees 24,198 15,123 16,635
Shareholder reporting fees 39,168 7,943 10,862
Registration fees 11,189 5,800 8,216
Trustees fees 7,058 7,059 7,058
Miscellaneous 8,752 4,576 6,207
Amortization of deferred organization
costs 4,721 4,721 1,279
------------ ------------ -----------
Total expenses 515,887 310,696 381,655
Less: expenses reimbursed (117,268) (65,609) (87,690)
Add: credit line commitment fees 3,024 505 1,513
------------ ------------ -----------
Net expenses 401,643 245,592 295,478
------------ ------------ -----------
Net investment income (loss) (119,606) 58,476 743,949
------------ ------------ -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments (4,202,523) 740,017 1,840,965
Change in net unrealized appreciation
(depreciation) on investments (6,986,807) (2,177,696) (1,712,158)
------------ ------------ -----------
Net gain (loss) on investments (11,189,330) (1,437,679) 128,807
------------ ------------ -----------
Net increase (decrease) in net assets
resulting from operations $(11,308,936) $(1,379,203) $ 872,756
------------ ------------ -----------
------------ ------------ -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
(UNAUDITED)
----------------------------------------------------------
Mini-Cap Fund
<TABLE>
<CAPTION>
FOR THE PERIODS
---------------------------
07/01/98 07/01/97
TO 12/31/98 TO 6/30/98
------------ -------------
<S> <C> <C>
INCREASE / (DECREASE) IN NET ASSETS
Operations:
Net investment loss $ (119,606) $ (802,346)
Net realized gain / (loss) on investments (4,202,523) 27,481,233
Change in net unrealized depreciation on investments (6,986,807) (13,131,072)
------------ -------------
Net increase / (decrease) in net assets from
operations (11,308,936) 13,547,815
------------ -------------
Distributions to shareholders:
From net investment income -- --
From net realized gains (5,303,746) (30,810,487)
------------ -------------
Total distributions (5,303,746) (30,810,487)
------------ -------------
Fund share transactions:
Proceeds from shares sold 19,937,179 96,326,126
Net asset value of shares issued on reinvestment of
distributions 5,022,337 28,723,773
Cost of shares redeemed (59,497,390) (139,969,472)
------------ -------------
Net decrease from Fund share transactions (34,537,874) (14,919,573)
------------ -------------
Net increase / (decrease) in net assets (51,150,556) (32,182,245)
NET ASSETS
Beginning of period 90,870,303 123,052,548
------------ -------------
End of period $ 39,719,747 $ 90,870,303
------------ -------------
------------ -------------
CHANGE IN SHARES
Shares sold 1,259,884 4,433,085
Shares issued on reinvestment of distributions 370,081 1,437,672
Shares redeemed (3,629,717) (6,748,102)
------------ -------------
Net decrease (1,999,752) (877,345)
------------ -------------
------------ -------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
(UNAUDITED)
----------------------------------------------------------
Value+Growth Fund
<TABLE>
<CAPTION>
FOR THE PERIODS
--------------------------
07/01/98 07/01/97
TO 12/31/98 TO 6/30/98
------------ ------------
<S> <C> <C>
INCREASE / (DECREASE) IN NET ASSETS
Operations:
Net investment income $ 58,476 $ 34,649
Net realized gain on investments 740,017 2,939,634
Change in net unrealized appreciation /
(depreciation) on investments (2,177,696) 1,178,382
------------ ------------
Net increase / (decrease) in net assets from
operations (1,379,203) 4,152,665
------------ ------------
Distributions to shareholders:
From net investment income -- (120,896)
From net realized gains (2,433,087) (3,451,349)
------------ ------------
Total distributions (2,433,087) (3,572,245)
------------ ------------
Fund share transactions:
Proceeds from shares sold 1,945,343 30,647,357
Net asset value of shares issued on reinvestment of
distributions 2,423,048 3,471,757
Cost of shares redeemed (9,115,780) (11,294,038)
------------ ------------
Net increase / (decrease) from Fund share transactions (4,747,389) 22,825,076
------------ ------------
Net increase / (decrease) in net assets (8,559,679) 23,405,496
NET ASSETS
Beginning of period 47,399,343 23,993,847
------------ ------------
End of period $38,839,664 $ 47,399,343
------------ ------------
------------ ------------
CHANGE IN SHARES
Shares sold 135,516 1,930,512
Shares issued on reinvestment of distributions 170,397 222,229
Shares redeemed (633,915) (702,262)
------------ ------------
Net increase / (decrease) (328,002) 1,450,479
------------ ------------
------------ ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
(UNAUDITED)
----------------------------------------------------------
Balanced Fund
<TABLE>
<CAPTION>
FOR THE PERIODS
--------------------------
07/01/98 07/01/97
TO 12/31/98 TO 6/30/98
------------ ------------
<S> <C> <C>
INCREASE / (DECREASE) IN NET ASSETS
Operations:
Net investment income $ 743,949 $ 1,372,379
Net realized gain on investments 1,840,965 4,341,116
Change in net unrealized depreciation on investments (1,712,158) (176,701)
------------ ------------
Net increase in net assets from operations 872,756 5,536,794
------------ ------------
Distributions to shareholders:
From net investment income (782,358) (1,405,083)
From net realized gains (4,179,056) (6,870,711)
------------ ------------
Total distributions (4,961,414) (8,275,794)
------------ ------------
Fund share transactions:
Proceeds from shares sold 2,759,343 14,900,421
Net asset value of shares issued on reinvestment of
distributions 4,797,438 8,100,854
Cost of shares redeemed (8,769,070) (16,979,476)
------------ ------------
Net increase / (decrease) from Fund share transactions (1,212,289) 6,021,799
------------ ------------
Net increase / (decrease) in net assets (5,300,947) 3,282,799
NET ASSETS
Beginning of period 66,680,940 63,398,141
------------ ------------
End of period $61,379,993 $ 66,680,940
------------ ------------
------------ ------------
CHANGE IN SHARES
Shares sold 186,904 956,486
Shares issued on reinvestment of distributions 338,591 527,543
Shares redeemed (602,970) (1,109,840)
------------ ------------
Net increase / (decrease) (77,475) 374,189
------------ ------------
------------ ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE>
FINANCIAL HIGHLIGHTS
(UNAUDITED)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD.
----------------------------------------------------------
Mini-Cap Fund
<TABLE>
<CAPTION>
FOR THE PERIODS
--------------------------------------------------------------
07/01/98 07/01/97 07/01/96 07/01/95 09/30/94+
TO TO TO TO TO
12/31/98 06/30/98 06/30/97 06/30/96 06/30/95
----------- ----------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 19.10 $ 21.83 $ 18.39 $ 14.12 $ 10.00
----------- ----------- ---------- ----------- -----------
Income from investment
operations
Net investment income (loss) (0.04) (0.17) (0.01) (0.02) 0.01
Net realized and unrealized
gain on investments (2.76) 2.40 4.04 5.25 4.13
----------- ----------- ---------- ----------- -----------
Total from investment
operations (2.80) 2.23 4.03 5.23 4.14
----------- ----------- ---------- ----------- -----------
Less distributions
From net investment income - - - - (0.02)
From net realized gains (1.90) (4.96) (0.59) (0.96) -
----------- ----------- ---------- ----------- -----------
Total distributions (1.90) (4.96) (0.59) (0.96) (0.02)
----------- ----------- ---------- ----------- -----------
Net asset value, end of
period $ 14.40 $ 19.10 $ 21.83 $ 18.39 $ 14.12
----------- ----------- ---------- ----------- -----------
----------- ----------- ---------- ----------- -----------
Total return (14.05)%** 10.29% 22.45% 38.46% 41.47%**
----------- ----------- ---------- ----------- -----------
----------- ----------- ---------- ----------- -----------
Net assets at end of period
(in 000's) $ 39,720 $ 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% 1.50%*
----------- ----------- ---------- ----------- -----------
----------- ----------- ---------- ----------- -----------
Ratio of net investment
income (loss) to average net
assets (0.45 )%* (0.59 )% (0.08)% (0.35 )% 0.04%*
----------- ----------- ---------- ----------- -----------
----------- ----------- ---------- ----------- -----------
Portfolio turnover rate 61.73% 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. FOR THE
PERIOD FROM JULY 1, 1998 TO DECEMBER 31, 1998, THE ANNUALIZED RATIO OF
EXPENSES TO AVERAGE NET ASSETS BEFORE EXPENSE REIMBURSEMENTS AND RECOUPMENTS
WAS 1.96% FOR THE MINI-CAP FUND.
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE>
FINANCIAL HIGHLIGHTS
(UNAUDITED)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED.
----------------------------------------------------------
Value+Growth Fund
<TABLE>
<CAPTION>
FOR THE PERIODS
---------------------------------------------------------------
07/01/98 07/01/97 07/01/96 07/01/95 09/30/94+
TO TO TO TO TO
12/31/98 06/30/98 06/30/97 06/30/96 06/30/95
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 16.20 $ 16.27 $ 13.69 $ 12.82 $ 10.00
----------- ----------- ----------- ----------- -----------
Income from investment
operations
Net investment income (loss) 0.02 0.01 0.10 0.11 0.05
Net realized and unrealized
gain on investments (0.28) 1.77 4.03 1.40 2.79
----------- ----------- ----------- ----------- -----------
Total from investment
operations (0.26) 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 (0.99) (1.81) (1.45) (0.51) -
----------- ----------- ----------- ----------- -----------
Total distributions (0.99) (1.85) (1.55) (0.64) (0.02)
----------- ----------- ----------- ----------- -----------
Net asset value, end of
period $ 14.95 $ 16.20 $ 16.27 $ 13.69 $ 12.82
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Total return (1.28)%** 11.54% 32.38% 12.11% 28.43%**
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Net assets at end of period
(in 000's) $ 38,840 $ 47,399 $ 23,994 $ 21,256 $ 12,989
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Ratio of expenses to average
net assets (net of expense
reimbursements)(1) 1.25%* 1.25% 1.26% 1.35% 1.35%
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Ratio of net investment
income (loss) to average
net assets 0.30%* 0.09% 0.45% 0.78% 1.18%
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Portfolio turnover rate 47.17% 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 THE PERIODS
ENDED JUNE 30, 1998, 1997, 1996, AND 1995, RESPECTIVELY. FOR THE PERIOD FROM
JULY 1, 1998 TO DECEMBER 31, 1998, THE ANNUALIZED RATIO OF EXPENSES TO AVERAGE
NET ASSETS BEFORE EXPENSE REIMBURSEMENTS AND RECOUPMENTS WAS 1.59% FOR THE
VALUE+GROWTH FUND.
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE>
FINANCIAL HIGHLIGHTS
(UNAUDITED)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD.
----------------------------------------------------------
Balanced Fund
<TABLE>
<CAPTION>
FOR THE PERIODS
--------------------------------------------------
07/01/98 07/01/97 07/01/96 07/01/95
TO TO TO TO
12/31/98 06/30/98 06/30/97 06/30/96
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 15.44 $ 16.07 $ 14.69 $ 13.96
----------- ----------- ----------- -----------
Income from investment operations
Net investment income 0.18 0.31 0.38 0.43
Net realized and unrealized gain on
investments 0.07 1.05 2.78 1.27
----------- ----------- ----------- -----------
Total from investment operations 0.25 1.36 3.16 1.70
----------- ----------- ----------- -----------
Less distributions
From net investment income (0.19) (0.32) (0.37) (0.43)
From net realized gains (1.03) (1.67) (1.41) (0.54)
----------- ----------- ----------- -----------
Total distributions (1.22) (1.99) (1.78) (0.97)
----------- ----------- ----------- -----------
Net asset value, end of period $ 14.47 $ 15.44 $ 16.07 $ 14.69
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Total return 1.85%** 8.96% 23.12% 12.56%
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Net assets at end of period (in
000's) $ 61,380 $ 66,681 $ 63,398 $ 46,979
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Ratio of expenses to average net
assets
(net of expense
reimbursements)(1) 0.95%* 1.00% 1.26% 1.35%
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Ratio of net investment income to
average net assets 2.41%* 1.99% 2.62% 2.98%
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Portfolio turnover rate 60.90% 83.27% 91.90% 69.11%
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
* ANNUALIZED
**NOT ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
+ THE JURIKA & VOYLES BALANCED FUND COMMENCED OPERATIONS ON MARCH 9, 1992.
1 THE RATIOS OF EXPENSES TO AVERAGE NET ASSETS BEFORE EXPENSE REIMBURSEMENTS WAS
1.37%, 1.31%, 1.49%, AND 1.42% FOR THE BALANCED FUND FOR THE PERIODS ENDED
JUNE 30, 1998, 1997, 1996, AND 1995, RESPECTIVELY. FOR THE PERIOD FROM JULY 1,
1998 TO DECEMBER 31, 1998, THE ANNUALIZED RATIO OF EXPENSES TO AVERAGE NET
ASSETS BEFORE EXPENSE REIMBURSEMENTS AND RECOUPMENTS WAS 1.24% FOR THE
BALANCED FUND.
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD.
----------------------------------------------------------
Balanced Fund (continued)
<TABLE>
<CAPTION>
FOR THE PERIODS
--------------------------------------------------
10/01/94 TO 11/01/93 TO 11/01/92 TO 03/09/92 TO
06/30/95 09/30/94 10/31/93 10/31/92+
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period $ 12.41 $ 12.82 $ 10.84 $ 10.00
----------- ----------- ----------- -----------
Income from investment operations
Net investment income 0.24 0.16 0.16 0.11
Net realized and unrealized gain on
investments 1.59 0.05 1.98 0.83
----------- ----------- ----------- -----------
Total from investment operations 1.83 0.21 2.14 0.94
----------- ----------- ----------- -----------
Less distributions
From net investment income (0.24) (0.18) (0.16) (0.10)
From net realized gains (0.04) (0.44) - -
----------- ----------- ----------- -----------
Total distributions (0.28) (0.62) (0.16) (0.10)
----------- ----------- ----------- -----------
Net asset value, end of period $ 13.96 $ 12.41 $ 12.82 $ 10.84
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Total return 14.98%** 3.66%** 19.83% 9.42%**
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Net assets at end of period (in
000's) $ 38,836 $ 34,659 $ 20,931 $ 6,008
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Ratio of expenses to average net
assets (net of expense
reimbursements)(1) 1.33%* 1.63%* 1.47% 1.50%*
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Ratio of net investment income to
average net assets 2.51%* 1.77%* 1.51% 1.93%*
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Portfolio turnover rate 54.02% 60.90% 44.12% 20.00%
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
* ANNUALIZED
**NOT ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
+ THE JURIKA & VOYLES BALANCED FUND COMMENCED OPERATIONS ON MARCH 9, 1992.
1 THE RATIOS OF EXPENSES TO AVERAGE NET ASSETS BEFORE EXPENSE REIMBURSEMENTS WAS
1.37%, 1.31%, 1.49%, AND 1.42% FOR THE BALANCED FUND FOR THE PERIODS ENDED
JUNE 30, 1998, 1997, 1996, AND 1995, RESPECTIVELY. FOR THE PERIOD FROM JULY 1,
1998 TO DECEMBER 31, 1998, THE ANNUALIZED RATIO OF EXPENSES TO AVERAGE NET
ASSETS BEFORE EXPENSE REIMBURSEMENTS AND RECOUPMENTS WAS 1.24% FOR THE
BALANCED FUND.
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 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.
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: 1.00% for the Mini-Cap Fund, 0.85% for the Value+Growth Fund and 0.70%
for the Balanced Fund. 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 1.50% for Mini-Cap Fund, 1.25%
for the Value+Growth Fund, and 0.95% for the Balanced 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 December 31, 1998 amounted to $248,134,
$452,368 and $426,203, 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 and not out of the service fee payable under the
Shareholder Services
39
<PAGE>
NOTES TO FINANCIAL STATEMENTS
3. Management Fees and Transaction with Affiliates--continued
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, L.L.C. (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 six months ended December 31, 1998, are as
follows:
<TABLE>
<CAPTION>
FUNDS PURCHASES SALES
- ------------------------------------------------ -------------- --------------
<S> <C> <C>
Mini-Cap Fund $ 25,145,384 58,809,860
Value+Growth Fund 14,108,080 21,175,708
Balanced Fund 26,796,359 29,533,012
</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 December 31, 1998, based on
cost for federal income tax purposes, are as follows:
<TABLE>
<CAPTION>
GROSS GROSS
TOTAL UNREALIZED UNREALIZED NET UNREALIZED
FUNDS TAX COST APPRECIATION DEPRECIATION APPRECIATION
- ----------------------- -------------- ------------- -------------- --------------
<S> <C> <C> <C> <C>
Mini-Cap Fund $ 39,804,289 $ 4,318,063 ($ 5,358,383) ($ 1,040,320)
Value+Growth Fund 36,019,889 6,027,508 (3,050,077) 2,977,431
Balanced Fund 54,643,666 8,614,037 (1,915,708) 6,698,329
</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 six months ended December 31, 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>
[LOGO]
Jurika & Voyles Fund Group
P.O. Box 9291
Boston, MA 02266-9291
(800) JV-INVST
(800) 584-6878
