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[LOGO]
Annual Report
Jurika & Voyles Fund Group
Small-Cap Fund
Value+Growth Fund
Balanced Fund
June 30, 2000
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TABLE OF CONTENTS
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<TABLE>
<S> <C>
.....................................................
Letter to Shareholders 1
.....................................................
Performance
..................................................
Small-Cap Fund 3
..................................................
Value+Growth Fund 6
..................................................
Balanced Fund 9
.....................................................
Schedule of Investments 12
.....................................................
Statements of Assets and Liabilities 29
.....................................................
Statements of Operations 30
.....................................................
Statement of Changes in Net Assets 31
.....................................................
Financial Highlights 34
.....................................................
Notes to Financial Statements 37
.....................................................
Report of Independent Accountants 42
</TABLE>
DIRECTORY OF FUNDS' SERVICE PROVIDERS
INVESTMENT ADVISER
Jurika & Voyles, L.P., Oakland, CA
DISTRIBUTOR
First Fund Distributors, Inc., Phoenix, AZ
CUSTODIAN AND FUND ACCOUNTANT
State Street Bank & Trust Co., Boston, MA
LEGAL COUNSEL
Paul, Hastings, Janofsky & Walker LLP, San Francisco, CA
AUDITOR
PricewaterhouseCoopers, 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.
<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 ending June 30, 2000.
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
-------------------------------------------------
SMALL-CAP FUND
Review
------
Looking back at the U.S. equity markets over the last 12 months, one is reminded
of the fact that it is again summer, and here in the San Francisco area the X
GAMES are in full swing. The X GAMES are geared toward the "extreme," and
extreme is an excellent description of the equity markets during the last year.
Some of the "extremes" we have witnessed over the last twelve months include:
1)Technology issues as a group
(internet issues in particular) taking off in November of 1999 and trading at
heretofore unheard of valuations (multiples of expected revenues) early in
2000.
2)The Nasdaq Composite
suffering its largest correction in decades falling more than 40% from the
highs reached in March.
3)New highs in average daily
trading volumes.
4)100 to 200 point daily swings
in the level of the Nasdaq Composite becoming almost commonplace.
5)The stocks of more than a few
of 1999's internet darlings (companies such as Dr. Koop.com and Engage
Technologies) crashing and these companies encircled by real concerns over
their long-term survival.
6)The amazing 180-degree
change in investor sentiment experienced in April, as investor focus changed
from revenue growth to profit expectations almost overnight.
Within this environment, the Fund performed quite well in the latter part of
1999 and into the first quarter of 2000. We had enough exposure to benefit from
the surge in the technology sector yet we kept to our valuation discipline. As
the markets corrected in April and May, the Fund's performance suffered but
remained in line with the performance of the Russell 2000 for the second quarter
of 2000. Through June 30, 2000, the Fund was up 46.4% year-over-year compared
with 14.3% for the Russell 2000 and 23.6% for the Lipper Small Cap Core index.
Outlook
-------
We feel quite confident that the portfolio is well positioned for the future.
Small and mid-cap stocks have been the best performing issues during the last
six months, and we would expect that trend to continue. Investors are much more
focused on the fundamental characteristics of individual issues and not on the
market as a whole. The growth opportunities for small companies in a good
economy plus the added potential of mergers and takeovers, is causing investors
to
3
<PAGE>
PERFORMANCE
-------------------------------------------------
SMALL-CAP FUND
take more notice of the sector. The Fund should benefit from this current
environment, as investors reward those companies with solid, consistent
long-term growth rates.
We still feel that the technology, health care and oil service sectors offer
upside from current levels, and the Fund is well represented in these sectors.
The recent correction in the semiconductor sector has brought valuations to very
reasonable levels. As a result we have added to our weighting in this sector. We
are also very bullish on the outlook and prospects for the wireless industry and
have several positions in the portfolio that we believe will benefit from the
huge growth that is coming as we begin to deliver data over wireless networks.
In addition, we see continued earnings growth in the oil service sector as oil
and gas prices remain at relatively high levels. We believe this sector is
attractively valued and is a good offset to the more volatile technology issues.
4
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PERFORMANCE
-------------------------------------------------
SMALL-CAP FUND
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
TOTAL RETURNS FOR PERIOD ENDED JUNE 30, 2000
ONE YEAR FIVE YEAR ANNUALIZED
TOTAL RETURN ANNUALIZED RETURN SINCE INCEPTION
<S> <C> <C> <C>
Jurika & Voyles Small-Cap Fund 46.44% 21.37% 25.71%
Lipper Small-Cap Core Index 23.62% 15.74% 16.07%
Russell 2000 Index 14.32% 14.27% 14.57%
</TABLE>
<TABLE>
<CAPTION>
JURIKA & VOYLES LIPPER SMALL-CAP RUSSELL 2000
SMALL-CAP FUND CORE INDEX INDEX
<S> <C> <C> <C>
9/30/94 $10,000 $10,000 $10,000
12/31/94 $10,650 $9,882 $9,813
3/31/95 $11,832 $10,602 $10,265
6/30/95 $14,147 $11,345 $11,228
9/30/95 $15,509 $12,582 $12,336
12/31/95 $16,210 $12,920 $12,604
3/31/96 $17,691 $13,814 $13,247
6/30/96 $19,597 $14,732 $13,910
9/30/96 $19,949 $14,824 $13,957
12/31/96 $21,424 $15,338 $14,683
3/31/97 $20,270 $14,499 $13,923
6/30/97 $23,983 $16,957 $16,180
9/30/97 $29,320 $19,800 $18,588
12/31/97 $26,536 $18,748 $17,966
3/31/98 $28,668 $20,788 $19,773
6/30/98 $26,452 $19,827 $18,851
9/30/98 $19,957 $15,466 $15,053
12/31/98 $22,737 $18,066 $17,508
3/31/99 $20,716 $16,541 $16,559
6/30/99 $25,468 $19,065 $19,134
9/30/99 $24,979 $18,251 $17,924
12/31/99 $35,431 $21,711 $21,230
3/31/00 $39,237 $23,950 $22,734
6/30/00 $37,294 $23,567 $21,875
</TABLE>
This graph is furnished to you in accordance with SEC regulations. It compares a
$10,000 investment in Jurika & Voyles Small-Cap Fund with a similar investment
in the Lipper Small-Cap Core Index and the Russell 2000 Index from the inception
of the Fund on September 30, 1994 through June 30, 2000. For purposes of the
graph and the Fund's Annualized Return Since Inception, One Year Total Return,
and Five Year Annualized 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 Analytical Services, Inc., Small-Cap Core Index is an unmanaged, net
asset value weighted index of 30 mutual funds that invest at least 75% of their
equity assets in companies with market capitalizations (on a three-year weighted
basis) of less than 250% of the dollar-weighted median market capitalization of
the S&P Small-Cap 600 Index. The 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. It is not possible to invest directly in an index.
All results are historical. Past performance is no guarantee of future results.
Effective September 13, 1999, Lipper Analytical Services, Inc. altered their
tracking methodology of various fund index objectives including the Lipper Small
Company Index. As a result, the Advisor has replaced the Lipper Small Company
Index with the Lipper Small-Cap Core Index to better reflect the investment
objectives of the Small-Cap Fund.
5
<PAGE>
PERFORMANCE
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VALUE+GROWTH FUND
Review
------
The record sequence of five consecutive years of 20% plus returns for the S&P
500 has come to an end--the S&P 500 finished the year ended June 30, 2000, up
7.2%. For the year, technology stocks dominated the market, and growth stocks
significantly outperformed value stocks. The Russell 1000 growth index rose
25.7% while the value index fell 8.9%. The difficult interest rate backdrop
impacted equity performance. Although 30-year interest rates were relatively
unchanged (at around 6%), the 30-day bill increased in yield from 4.8% to 5.9%.
For the first 3 quarters, growth stocks clearly led the market--the
technology-heavy Nasdaq Composite increased by more than 70% in those 9 months.
Investors were preoccupied with the stocks with the highest recent price
performance, with apparent disregard for valuation or the quality of the
business. Markets led by price momentum are notoriously fragile and relatively
infrequent.
In the June quarter, investor attention changed from "what is appreciating the
most quickly" to the more fundamental questions of the outlook for the economy
and inflation and the Federal Reserve's decisions regarding the level of
short-term interest rates. As well, the giant infusion of financial capital into
various sectors of the internet economy had its predicted effect of dampening
expectations for prospective profits. The focus on the effects of higher rates
on the economy resulted in a significant correction in technology stocks in
particular and the market in general.
The Nasdaq Composite index fell almost 30% from March 31 to late May, before
significantly rebounding to finish the quarter down 13.2%. Market leadership
changed from growth and technology to value (especially for small and mid-cap
stocks) and the more defensive sectors of consumer staples, health care, energy
and utilities. Energy and electric utilities are increasingly being viewed
beyond their defensive characteristics as earnings momentum vehicles.
After increasing exposure to technology stocks early in the year, we moved to a
significant underweight in the December and early March quarter as valuations of
technology stocks reached full levels. We have also moved to increase the
quality of the portfolio by focusing on companies with strong returns and
superior growth. We were buyers of "predictable growth" and sellers of cyclicals
and financials.
Outlook
-------
We believe that the economy will be difficult to slow. The
6
<PAGE>
PERFORMANCE
-------------------------------------------------
VALUE+GROWTH FUND
consumer sector remains strong, driven by low unemployment, strong wage gains
and high consumer confidence. Although the industrial and construction sectors
are showing initial signs of slowing, our current expectation is for no
additional interest rate increases in 2000, but for further increases following
the election. We believe it is likely that the increased volatility in the broad
market witnessed since 1998 will persist.
Our portfolio is overweight predictable growth companies and energy and is
underweight cyclicals, financials and technology.
7
<PAGE>
PERFORMANCE
-------------------------------------------------
VALUE+GROWTH FUND
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
TOTAL RETURNS FOR PERIOD ENDED JUNE 30, 2000
ONE YEAR FIVE YEAR ANNUALIZED
TOTAL RETURN ANNUALIZED RETURN SINCE INCEPTION
<S> <C> <C> <C>
Jurika & Voyles Value+Growth Fund 9.15% 13.87% 16.94%
Russell 1000 Index 9.25% 23.69% 24.05%
Russell MidCap Index 12.64% 18.74% 19.27%
Lipper Multi-Cap Value Index -6.66% 12.07% 14.77%
</TABLE>
<TABLE>
<CAPTION>
JURIKA & VOYLES RUSSELL RUSSELL LIPPER MULTI-CAP
VALUE+GROWTH FUND 1000 INDEX MIDCAP INDEX VALUE INDEX
<S> <C> <C> <C> <C>
9/30/94 $10,000 $10,000 $10,000 $10,000
12/31/94 $10,559 $9,961 $9,757 $9,806
3/31/95 $11,210 $10,909 $10,773 $10,594
6/30/95 $12,843 $11,936 $11,674 $11,469
9/30/95 $13,755 $12,999 $12,709 $12,351
12/31/95 $13,525 $13,723 $13,119 $12,847
3/31/96 $13,946 $14,480 $13,908 $13,592
6/30/96 $14,398 $15,070 $14,300 $13,932
9/30/96 $14,829 $15,562 $14,748 $14,343
12/31/96 $16,272 $16,804 $15,611 $15,544
3/31/97 $16,389 $17,064 $15,483 $15,806
6/30/97 $19,060 $19,932 $17,583 $17,934
9/30/97 $20,993 $21,673 $19,918 $19,726
12/31/97 $19,776 $22,324 $20,139 $19,726
3/31/98 $21,876 $25,309 $22,315 $21,981
6/30/98 $21,259 $25,942 $21,979 $21,591
9/30/98 $18,097 $23,267 $18,721 $18,309
12/31/98 $20,987 $28,357 $22,173 $21,014
3/31/99 $20,565 $29,526 $22,069 $21,166
6/30/99 $22,545 $31,630 $24,464 $23,666
9/30/99 $20,046 $29,541 $22,362 $21,122
12/31/99 $23,460 $34,287 $26,215 $22,262
3/31/00 $24,710 $35,784 $28,859 $22,314
6/30/00 $24,608 $34,555 $27,557 $22,091
</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 Russell 1000 Index, the Russell Midcap Index, and the Lipper
Analytical Services, Inc., Multi-Cap Value Index from the inception of the Fund
on September 30, 1994 through June 30, 2000. For purposes of the graph and the
Fund's Annualized Return Since Inception, One Year Total Return, and Five Year
Annualized 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.
The Russell 1000 Index is an unmanaged index containing 1,000 of the largest
companies in the Russell 3000 Index. The Russell Midcap Index is an unmanaged
index that measures the performance of the 800 smallest companies in the
Russell 1000 Index, which represents approximately 26% of the total market
capitalization of the Russell 1000 Index. The Lipper Analytical Services, Inc.,
Multi-Cap Value Index is an unmanaged, net asset value weighted index of 30
mutual funds that invest in a variety of market capitalization ranges, without
concentrating 75% of their equity assets in any one market capitalization range
over an extended period of time.
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. It is not possible to invest directly in an index.
All results are historical. Past performance is no guarantee of future results.
Effective September 13, 1999, Lipper Analytical Services, Inc. altered their
tracking methodology of various fund index objectives including the Lipper
Growth Fund Index and the Lipper Capital Appreciation Fund Index. As a result,
the Advisor has replaced the Lipper Growth Fund and Lipper Capital Appreciation
Fund Indices with the Lipper Multi-Cap Value Fund Index to better reflect the
investment objectives of the Value+Growth Fund. In addition, the S&P 500 Index
has been removed from the above chart, and is being replaced by the Russell 1000
Index. The Russell 1000 Index more appropriately reflects the investment
objectives of the Value+Growth Fund. As a broad market reference, the S&P 500
had an annualized return since September 30, 1994 (the inception of the
Value+Growth Fund) of 46.33%, a five year annualized return of 23.80%, and a one
year total return of 7.24%.
8
<PAGE>
PERFORMANCE
-------------------------------------------------
BALANCED FUND
Review
------
The volatility of the fixed income markets was apparent over the past year as
market participants focused their attention on the ability of the Federal
Reserve to apply the correct amount of braking to reduce inflationary pressures
without crushing our strong domestic economy. Additionally, the unknown risks of
the Y2K situation provided an uneasy backdrop.
Interest rates started the period inching upwards as the Fed began increasing
short-term rates to cool the rapidly growing economy. The bond market
experienced a tug-of-war between two economic forces. Economic growth helped
corporate bond performance, while inflation risk hurt (increased) the general
level of interest rates. Inflation risk was the more dominant force. By December
the ten-year Treasury had risen to about 6.50%, and high-grade corporates were
just 0.75% higher at 7.25%.
Once the Y2K scare passed without incident, the domestic fixed income markets
became more robust. Market participants realized that a healthy economy and
burgeoning tax receipts meant that the Treasury could buy back enough
outstanding debt to impact the market positively. Early in the year, 30-year
Treasury bonds declined in yield from their peak of 6.75% to 5.75% in spite of
additional inflation warning signs. The headlines of rising oil and housing
prices were no match for the momentum of investors trying to buy long bonds
before they became collectors' items. The steady increase in short-term rates by
the FOMC meant that long and short rates were moving in opposite directions, and
the shape of the yield curve became inverted as long yields traded below the
6.50% Fed Funds rate. The market's action in long Treasury notes tempted some
buyers away from corporate bonds, and high-grade corporates did not fully
participate in the declining long yields.
Outlook
-------
Domestic economic strength continues to be surprisingly robust, and overall
inflation remains remarkably restrained. Thus far Chairman Greenspan and the Fed
have successfully walked the tightrope by balancing inflation-restraining
efforts with continued healthy economic growth. While a resurgence of labor
inflation could yet unhinge a docile bond market, such an increase would likely
be attacked by an aggressive Fed that is mindful of their reputation as the
successful architects of the longest economic expansion in U.S. history.
9
<PAGE>
PERFORMANCE
-------------------------------------------------
BALANCED FUND
Looking forward, we see a pause in Fed rate tightening actions, to let the
impact of past increases filter through the economy. Low current Treasury
yields, a solid economic outlook, and relatively attractive corporate yields
have allowed us to reduce our Treasury exposure in favor of agency and corporate
bonds.
10
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PERFORMANCE
-------------------------------------------------
BALANCED FUND
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
TOTAL RETURNS FOR PERIOD ENDED JUNE 30, 2000
ONE YEAR FIVE YEAR ANNUALIZED
TOTAL RETURN ANNUALIZED RETURN SINCE INCEPTION
<S> <C> <C> <C>
Jurika & Voyles Balanced Fund 7.26% 11.28% 12.47%
Lipper Balanced Index 4.43% 13.82% 12.07%
60% Russell 1000 Index/40% Lehman Brothers
Aggregate Bond Index 7.61% 16.63% 14.27%
</TABLE>
<TABLE>
<CAPTION>
JURIKA & VOYLES LIPPER BALANCED 60% RUSSELL 1000 INDEX/
BALANCED FUND INDEX 40% LEHMAN BROTHERS AGGREGATE BOND INDEX
<S> <C> <C> <C>
3/9/92 $10,000 $10,000 $10,000
3/31/92 $9,940 $9,983 $9,983
6/30/92 $10,162 $10,143 $10,229
9/30/92 $10,720 $10,463 $10,607
12/31/92 $11,547 $10,856 $11,026
3/31/93 $12,118 $11,367 $11,484
6/30/93 $12,333 $11,599 $11,656
9/30/93 $13,060 $12,024 $12,004
12/31/93 $13,512 $12,154 $12,132
3/31/94 $13,331 $11,783 $11,706
6/30/94 $13,216 $11,693 $11,646
9/30/94 $13,544 $12,036 $12,032
12/31/94 $13,216 $11,905 $12,024
3/31/95 $14,142 $12,623 $12,952
6/30/95 $15,573 $13,507 $13,998
9/30/95 $16,480 $14,232 $14,853
12/31/95 $16,574 $14,868 $15,605
3/31/96 $17,050 $15,200 $16,004
6/30/96 $17,529 $15,509 $16,432
9/30/96 $17,967 $15,918 $16,885
12/31/96 $19,140 $16,808 $17,897
3/31/97 $19,536 $16,887 $18,032
6/30/97 $21,581 $18,707 $20,093
9/30/97 $22,997 $19,909 $21,421
12/31/97 $22,331 $20,220 $22,070
3/31/98 $23,682 $21,819 $23,963
6/30/98 $23,514 $22,151 $24,552
9/30/98 $21,848 $20,869 $23,480
12/31/98 $23,959 $23,270 $26,516
3/31/99 $23,600 $23,644 $27,119
6/30/99 $24,781 $24,706 $28,177
9/30/99 $23,151 $23,682 $27,127
12/31/99 $25,511 $25,359 $29,678
3/31/00 $26,345 $26,115 $30,743
6/30/00 $26,580 $25,800 $30,320
</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% Russell 1000 Index and 40% Lehman Brothers
Aggregate Bond Index, and Lipper Analytical Services, Inc., Balanced Fund Index
from the inception of the Fund on March 9, 1992 through June 30, 2000. For
purposes of the graph and the Fund's Annualized Total Return, One Year Total
Return, and Five Year Annualized 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 Lipper Analytical Services, Inc., Balanced Fund Index is an unmanaged, net
asset value weighted index of 30 balanced mutual funds. The Russell 1000 Index
is an unmanaged index containing 1,000 of the largest companies in the Russell
3000 Index. The Lehman Brothers Aggregate Bond Index is composed of the Lehman
Government/Corporate Bond Index and the Lehman Mortgage-Backed Securities Index
and includes treasury issues, agency issues, corporate bond issues and
mortgage-backed securities.
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. It is not possible to invest directly in an index.
All results are historical. Past performance is no guarantee of future results.
The composite index of 60% S&P 500 and 40% Lehman Brothers Government/Corporate
Int. Bond Index has been replaced with a composite of 60% Russell 1000 Index and
40% Lehman Brothers Aggregate Bond Index to better reflect the investment
objectives of the Balanced Fund. As a broad market reference, the S&P 500/Lehman
Brothers Government/ Corporate Int. Bond composite had an annualized return
since March 9, 1992 (the inception of the Balanced Fund) of 14.07%, a five year
annualized return of 16.60%, and a one year total return of 6.30%.
11
<PAGE>
SCHEDULE OF INVESTMENTS
AT JUNE 30, 2000
----------------------------------------------------------
SMALL-CAP FUND
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
-------------------------------------------------------------------------
COMMON STOCKS: 97.0%
AIRLINES: 0.5%
12,500 America West Holding Corp. - Class B*............ $ 214,062
----------
AIRLINES/AIR FREIGHT: 2.8%
30,000 Forward Air Corp.*............................... 1,200,000
----------
BANKING: 0.8%
10,000 City National Corp............................... 347,500
----------
CASINOS/HOTELS: 1.1%
19,000 Station Casinos, Inc.*........................... 475,000
----------
CHEMICALS: 1.3%
12,000 Calgon Carbon Corp............................... 93,000
10,000 Minerals Technologies, Inc....................... 460,000
----------
553,000
----------
COMMERCIAL BANKS: 1.2%
12,500 Silicon Valley Bancshares*....................... 532,812
----------
COMMERCIAL SERVICES: 3.1%
13,000 Administaff, Inc.*............................... 825,500
5,600 Diamond Technology Partners, Inc.*............... 492,800
----------
1,318,300
----------
COMMUNICATIONS - EQUIPMENT: 5.4%
12,500 Ancor Communications, Inc.*...................... 447,070
9,000 Carrier Access Corp.*............................ 475,875
15,000 International Fibercom, Inc.*.................... 382,500
19,000 LCC International, Inc.*......................... 518,937
33,000 SpectraLink Corp.*............................... 482,625
1,000 Stratos Lightwave, Inc.*......................... 27,875
----------
2,334,882
----------
COMMUNICATIONS - SOFTWARE: 0.5%
5,000 Research in Motion, Ltd.*........................ 226,250
----------
COMPUTERS - INTEGRATED SYSTEMS: 0.2%
11,400 United Shipping & Technology, Inc.*.............. 91,200
----------
</TABLE>
12
<PAGE>
SCHEDULE OF INVESTMENTS
AT JUNE 30, 2000
----------------------------------------------------------
SMALL-CAP FUND
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------------------------------------------------------
<C> <S> <C>
COMPUTERS - NETWORKING PRODUCTS: 0.4%
23,000 Qualstar Corp.*.................................. $ 176,094
----------
COMPUTERS - PERIPHERALS: 2.5%
24,000 Concurrent Computer Corp.*....................... 315,000
9,500 NetIQ, Inc.*..................................... 566,437
13,500 Wave Systems Corp.*.............................. 213,469
----------
1,094,906
----------
COMPUTERS - SEMICONDUCTORS: 5.7%
18,500 ACT Manufacturing, Inc.*......................... 859,094
32,500 General Semiconductor, Inc.*..................... 479,375
13,500 IBIS Technology Corp.*........................... 815,062
5,500 Virata Corp.*.................................... 327,937
----------
2,481,468
----------
COMPUTERS - SERVICES: 0.4%
13,000 iXL Enterprises, Inc.*........................... 188,500
----------
COMPUTERS - SOFTWARE: 6.6%
34,800 Click2Learn.com, Inc.*........................... 613,350
8,500 Concord Communications, Inc.*.................... 338,937
20,000 Exchange Applications, Inc.*..................... 532,500
35,000 Netcentives, Inc.*............................... 651,875
9,000 Tumbleweed Communications Corp.*................. 457,875
18,800 Zomax Optical Media, Inc......................... 246,750
----------
2,841,287
----------
CONGLOMERATES: 1.6%
32,000 Mobile Mini, Inc.*............................... 706,000
----------
CREDIT AND FINANCE: 2.2%
17,000 Compucredit Corp.*............................... 510,000
18,000 Metris Companies, Inc............................ 452,250
----------
962,250
----------
DIRECT MARKETING: 0.7%
13,300 ValueVision International, Inc.*................. 319,200
----------
</TABLE>
13
<PAGE>
SCHEDULE OF INVESTMENTS
AT JUNE 30, 2000
----------------------------------------------------------
SMALL-CAP FUND
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------------------------------------------------------
<C> <S> <C>
ELECTRICAL EQUIPMENT: 3.1%
5,000 Bolder Technologies Corp.*....................... $ 38,125
25,000 Kent Electronics Corp.*.......................... 745,312
10,000 MMC Networks, Inc.*.............................. 534,375
----------
1,317,812
----------
ELECTRONIC COMPONENTS: 3.3%
12,000 Cabot Microelectronics Corp.*.................... 549,000
60,000 Duraswitch Industries, Inc.*..................... 420,000
11,000 Interlink Electronics, Inc.*..................... 460,625
----------
1,429,625
----------
ELECTRONIC INSTRUMENTS: 4.5%
20,000 Dynatech Corp.*.................................. 362,500
5,000 II VI, Inc.*..................................... 241,875
6,500 Merix Corp.*..................................... 305,500
13,500 Rudolph Technologies, Inc.*...................... 523,125
7,000 Tektronix, Inc.*................................. 518,000
----------
1,951,000
----------
ELECTRONICS - DEFENSE: 2.5%
12,000 Engineered Support Systems, Inc.................. 165,000
20,000 Titan Corp.*..................................... 895,000
----------
1,060,000
----------
FINANCIAL SERVICES: 0.5%
12,000 Allied Capital Corp.............................. 204,000
----------
FINANCIAL SERVICES - DIVERSIFIED: 3.3%
20,000 Integrated Information Systems, Inc.*............ 163,750
55,000 Liveperson, Inc.*................................ 477,812
20,000 Sangamo Biosciences, Inc.*....................... 552,500
25,000 UbiquiTel, Inc.*................................. 235,937
----------
1,429,999
----------
</TABLE>
14
<PAGE>
SCHEDULE OF INVESTMENTS
AT JUNE 30, 2000
----------------------------------------------------------
SMALL-CAP FUND
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------------------------------------------------------
<C> <S> <C>
FOODS: 2.4%
15,000 Dreyers Grand Ice Cream, Inc..................... $ 315,000
37,500 Horizon Organic Holdings Corp.*.................. 398,437
7,000 Suiza Foods Corp.*............................... 342,125
----------
1,055,562
----------
HEALTHCARE: 1.0%
40,500 Ventiv Health, Inc.*............................. 450,563
----------
HEALTHCARE - MEDICAL SUPPLIES & PRODUCTS: 4.6%
18,566 Bindley Western Industries, Inc.................. 490,839
10,000 Enzon, Inc.*..................................... 425,000
20,000 Kensey Nash Corp.*............................... 222,500
10,000 Noven Pharmaceuticals, Inc.*..................... 300,625
25,000 Physiometrix, Inc.*.............................. 553,125
----------
1,992,089
----------
HEALTHCARE - SERVICES: 0.6%
10,000 Stericycle, Inc.*................................ 240,000
----------
HEALTHCARE FACILITIES: 2.5%
50,000 Med-Design Corp.*................................ 575,000
20,000 Renal Care Group, Inc.*.......................... 489,063
----------
1,064,063
----------
MACHINERY - DIVERSIFIED: 0.5%
5,400 Measurement Specialties, Inc.*................... 207,225
----------
MEDIA: 1.5%
10,000 Emmis Communications Corp. - Class A*............ 413,750
45,000 Harris Interactive, Inc.*........................ 217,969
----------
631,719
----------
MEDIA AND BROADCASTING: 1.9%
10,000 Pegasus Communications Corp.*.................... 490,625
38,000 Regent Communications, Inc.*..................... 326,563
----------
817,188
----------
</TABLE>
15
<PAGE>
SCHEDULE OF INVESTMENTS
AT JUNE 30, 2000
----------------------------------------------------------
SMALL-CAP FUND
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------------------------------------------------------
<C> <S> <C>
MEDICAL: 0.9%
18,000 BioSource International, Inc.*................... $ 400,500
----------
MEDICAL - BIOMEDICAL GENOMICS: 1.0%
12,000 Lexicon Genetics, Inc.*.......................... 412,500
----------
METALS: 0.5%
19,000 Century Aluminum Co.............................. 206,625
----------
OIL & GAS - FIELD SERVICES: 3.3%
6,200 BJ Services Co.*................................. 387,500
18,000 Marine Drilling Companies, Inc.*................. 504,000
17,000 Rowan Companies, Inc.*........................... 516,375
----------
1,407,875
----------
OIL & GAS PRODUCERS: 2.2%
60,000 Grey Wolf, Inc.*................................. 300,000
24,500 McMoRan Exploration Co.*......................... 404,250
7,500 Mitchell Energy & Development Corp. - Class A.... 240,938
----------
945,188
----------
OIL - DOMESTIC INTEGRATED: 1.1%
19,000 Spinnaker Exploration Co.*....................... 486,875
----------
OIL - EXPLORATION & PRODUCTION: 0.5%
21,000 3TEC Energy Corp.*............................... 210,000
----------
OIL - FIELD SERVICES: 2.1%
49,800 Newpark Resources, Inc.*......................... 469,988
12,500 Tidewater, Inc................................... 450,000
----------
919,988
----------
PHARMACEUTICALS: 5.4%
46,500 Anesta Corp.*.................................... 1,156,688
28,500 First Horizon Pharmaceutical, Inc.*.............. 277,875
25,000 Matrix Pharmaceuticals, Inc.*.................... 326,563
10,000 Neose Technologies, Inc.*........................ 420,625
17,000 NexMed, Inc.*.................................... 161,500
----------
2,343,251
----------
</TABLE>
16
<PAGE>
SCHEDULE OF INVESTMENTS
AT JUNE 30, 2000
----------------------------------------------------------
SMALL-CAP FUND
<TABLE>
<CAPTION>
SHARES VALUE
-------------------------------------------------------------------------
<C> <S> <C>
PRINTING SERVICES: 0.8%
30,000 Topps Co.*....................................... $ 345,000
----------
REAL ESTATE INVESTMENT TRUSTS: 1.2%
18,000 Asset Investors Corp............................. 212,625
18,000 Golf Trust of America, Inc....................... 285,750
----------
498,375
----------
RETAIL - GROCERS: 1.6%
50,000 United Natural Foods, Inc.*...................... 687,500
----------
RETAIL - RESTAURANTS: 1.1%
20,000 Jack in the Box, Inc.*........................... 492,500
----------
TELECOMMUNICATIONS - DIVERSIFIED: 0.9%
20,000 Caprock Communications Corp.*.................... 390,000
----------
TELECOMMUNICATIONS - SERVICES: 1.5%
30,000 Boston Communications Group, Inc.*............... 420,000
17,000 US Unwired, Inc. - Class A*...................... 221,000
----------
641,000
----------
TRANSPORTATION - MARINE: 0.7%
55,000 OMI Corp.*....................................... 299,063
----------
WIRELESS EQUIPMENT: 3.0%
40,000 Metro One Telecommunications, Inc.*.............. 502,500
15,000 SBA Communications Corp.*........................ 779,063
----------
1,281,563
----------
TOTAL COMMON STOCKS
(cost $34,772,029)......................................... 41,881,359
----------
</TABLE>
17
<PAGE>
SCHEDULE OF INVESTMENTS
AT JUNE 30, 2000
----------------------------------------------------------
SMALL-CAP FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
-------------------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENT: 2.2%
$ 958,000 State Street Trust Co., 2.00%, dated 06/30/00,
due 07/03/00, proceeds $958,158 [collateralized
by $960,000 U.S. Treasury Notes, 6.50%, due
08/31/01, value $980,400] (cost $958,000)........ $ 958,000
----------
TOTAL INVESTMENTS IN SECURITIES
(cost $35,730,029+): 99.2%................................. 42,839,359
Other Assets less Liabilities: 0.8%.......................... 334,073
----------
NET ASSETS: 100.00%.......................................... $43,173,432
==========
</TABLE>
* NON-INCOME PRODUCING SECURITY.
+ AT JUNE 30, 2000, THE BASIS OF INVESTMENTS FOR FEDERAL INCOME TAX PURPOSES WAS
$36,087,461. UNREALIZED APPRECIATION AND DEPRECIATION WERE AS FOLLOWS:
<TABLE>
<S> <C>
Gross unrealized appreciation................... $9,104,783
Gross unrealized depreciation................... (2,352,885)
----------
Net unrealized appreciation..................... $6,751,898
==========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
SCHEDULE OF INVESTMENTS
AT JUNE 30, 2000
----------------------------------------------------------
VALUE+GROWTH FUND
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
-----------------------------------------------------------------------
COMMON STOCKS: 97.3%
AIRLINES: 4.2%
15,000 AMR Corp.*....................................... $ 396,562
44,750 Southwest Airlines Co............................ 847,453
----------
1,244,015
----------
BANKING: 1.0%
6,600 Comerica, Inc.................................... 296,175
----------
BIOTECHNOLOGY: 1.2%
6,902 Pharmacia Corp................................... 356,747
----------
CHEMICALS: 2.4%
16,400 OM Group, Inc.................................... 721,600
----------
COMMERCIAL SERVICES: 3.7%
15,800 Ecolab, Inc...................................... 617,187
30,200 Republic Services, Inc.*......................... 483,200
----------
1,100,387
----------
COMPUTERS - PERIPHERALS: 1.1%
5,300 Sandisk Corp.*................................... 324,294
----------
COMPUTERS - SEMICONDUCTORS: 5.0%
14,200 KLA-Tencor Corp.*................................ 831,587
10,100 STMicroelectronics, N.V.......................... 648,294
----------
1,479,881
----------
COMPUTERS - SOFTWARE: 2.0%
34,500 Transaction System Achitects, Inc.*.............. 590,812
----------
COSMETICS AND TOILETRIES: 3.1%
15,900 Kimberly-Clark Corp.............................. 912,262
----------
DATA PROCESSING: 4.1%
24,500 First Data Corp.................................. 1,215,813
----------
DRUGS & PHARMACEUTICALS: 2.9%
16,300 Mylan Laboratories, Inc.......................... 297,475
11,700 Pfizer, Inc...................................... 561,600
----------
859,075
----------
</TABLE>
19
<PAGE>
SCHEDULE OF INVESTMENTS
AT JUNE 30, 2000
----------------------------------------------------------
VALUE+GROWTH FUND
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------------------------------------------------------
<C> <S> <C>
ELECTRIC POWER: 4.1%
26,700 AES Corp.*....................................... $1,218,188
----------
ELECTRONICS: 1.5%
6,400 Texas Instruments, Inc........................... 439,600
----------
FINANCIAL SERVICES - DIVERSIFIED: 1.1%
19,200 CIT Group, Inc................................... 312,000
----------
FOOD - RETAIL: 3.5%
35,600 Brinker International, Inc.*..................... 1,041,300
----------
FOOD - WHOLESALE: 2.8%
19,400 Sysco Corp....................................... 817,225
----------
FOODS: 3.3%
57,000 Hormel Foods Corp................................ 958,313
----------
MACHINERY - DIVERSIFIED: 1.9%
10,700 Cognex Corp.*.................................... 553,725
----------
MACHINERY - GENERAL: 2.3%
18,300 Deere & Co....................................... 677,100
----------
MANUFACTURING - DIVERSIFIED: 3.0%
2,000 Corning, Inc..................................... 539,750
10,300 Parker-Hannifin Corp............................. 352,775
----------
892,525
----------
MEDICAL - BIOMEDICAL GENETICS: 4.0%
16,800 Baxter International, Inc........................ 1,181,250
----------
OIL & GAS - FIELD SERVICES: 2.0%
16,900 Santa Fe International Corp...................... 590,444
----------
OIL - DOMESTIC INTEGRATED: 2.4%
12,200 Apache Corp...................................... 717,513
----------
OIL - INTERNATIONAL INTEGRATED: 8.5%
25,600 EOG Resources, Inc............................... 857,600
20,500 Nabors Industries, Inc.*......................... 852,031
34,800 Suncor Energy, Inc............................... 811,275
----------
2,520,906
----------
</TABLE>
20
<PAGE>
SCHEDULE OF INVESTMENTS
AT JUNE 30, 2000
----------------------------------------------------------
VALUE+GROWTH FUND
<TABLE>
<CAPTION>
SHARES VALUE
-----------------------------------------------------------------------
<C> <S> <C>
PIPELINES: 3.2%
14,500 Enron Corp....................................... $ 935,250
----------
PRINTING SERVICES: 4.1%
32,000 Valassis Communications, Inc.*................... 1,220,000
----------
PUBLISHING: 4.9%
26,500 McGraw-Hill Companies, Inc....................... 1,431,000
----------
REAL ESTATE INVESTMENT TRUSTS: 3.9%
5,800 Avalonbay Communities, Inc....................... 242,150
5,500 Equity Residential Properties Trust.............. 253,000
18,800 Prologis Trust................................... 400,675
5,500 Spieker Properties, Inc.......................... 253,000
----------
1,148,825
----------
RETAIL - SPECIALTY: 3.2%
71,600 Blockbuster, Inc................................. 693,625
7,600 Circuit City Stores, Inc......................... 252,225
----------
945,850
----------
SUPER - REGIONAL BANKS: 1.3%
7,200 Wachovia Corp.................................... 390,600
----------
TELECOMMUNICATIONS - SERVICES: 1.8%
12,400 SBC Communications, Inc.......................... 536,300
----------
TRAVEL SERVICES: 2.2%
22,600 Sabre Holdings Corp.*............................ 644,100
----------
WIRELESS EQUIPMENT: 1.6%
16,500 Motorola, Inc.................................... 479,531
----------
TOTAL COMMON STOCKS
(cost $25,488,278)....................................... 28,752,606
----------
</TABLE>
21
<PAGE>
SCHEDULE OF INVESTMENTS
AT JUNE 30, 2000
----------------------------------------------------------
VALUE+GROWTH FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
-----------------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENT: 2.8%
$843,000 State Street Trust Co., 2.00%, dated 06/30/00,
due 07/03/00, proceeds $843,139 [collateralized
by $845,000 U.S. Treasury Notes, 6.50%, due
08/31/01, value $862,956] (cost $843,000)........ $ 843,000
----------
TOTAL INVESTMENTS IN SECURITIES
(cost $26,331,278+): 100.1%.............................. 29,595,606
Liabilities in excess of Other Assets: (0.1)%............ (40,531)
----------
NET ASSETS: 100.00%........................................ $29,555,075
==========
</TABLE>
* NON-INCOME PRODUCING SECURITY.
+ AT JUNE 30, 2000, THE BASIS OF INVESTMENTS FOR FEDERAL INCOME TAX PURPOSES WAS
$26,603,278. UNREALIZED APPRECIATION AND DEPRECIATION WERE AS FOLLOWS:
<TABLE>
<C> <S> <C>
Gross unrealized appreciation............................. $4,510,998
Gross unrealized depreciation............................. (1,518,670)
----------
Net unrealized appreciation............................... $2,992,328
==========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
SCHEDULE OF INVESTMENTS
AT JUNE 30, 2000
----------------------------------------------------------
BALANCED FUND
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
--------------------------------------------------------------------------
COMMON STOCKS: 57.2%
AIRLINES: 2.5%
11,500 AMR Corp.*....................................... $ 304,031
32,850 Southwest Airlines Co............................ 622,097
----------
926,128
----------
BANKING: 0.6%
5,000 Comerica, Inc.................................... 224,375
----------
BIOTECHNOLOGY: 0.7%
5,236 Pharmacia Corp................................... 270,636
----------
CHEMICALS: 1.2%
9,800 OM Group, Inc.................................... 431,200
----------
COMMERCIAL SERVICES: 3.0%
11,200 Ecolab, Inc...................................... 437,500
41,700 Republic Services, Inc.*......................... 667,200
----------
1,104,700
----------
COMPUTERS - PERIPHERALS: 0.6%
3,600 Sandisk Corp.*................................... 220,275
----------
COMPUTERS - SEMICONDUCTORS: 2.9%
10,500 KLA-Tencor Corp.*................................ 614,906
6,900 STMicroelectronics, N.V.......................... 442,894
----------
1,057,800
----------
COMPUTERS - SOFTWARE: 1.1%
23,900 Transaction System Architects, Inc.*............. 409,287
----------
COSMETICS AND TOILETRIES: 1.8%
11,300 Kimberly-Clark Corp.............................. 648,337
----------
DATA PROCESSING: 2.3%
17,300 First Data Corp.................................. 858,512
----------
DRUGS & PHARMACEUTICALS: 1.7%
12,500 Mylan Laboratories, Inc.......................... 228,125
8,300 Pfizer, Inc...................................... 398,400
----------
626,525
----------
</TABLE>
23
<PAGE>
SCHEDULE OF INVESTMENTS
AT JUNE 30, 2000
----------------------------------------------------------
BALANCED FUND
<TABLE>
<CAPTION>
SHARES VALUE
--------------------------------------------------------------------------
<C> <S> <C>
ELECTRIC POWER: 2.3%
18,300 AES Corp.*....................................... $ 834,937
----------
ELECTRONICS: 0.8%
4,400 Texas Instruments, Inc........................... 302,225
----------
FINANCIAL SERVICES - DIVERSIFIED: 0.6%
13,000 CIT Group, Inc................................... 211,250
----------
FOOD - RETAIL: 1.9%
24,300 Brinker International, Inc.*..................... 710,775
----------
FOOD - WHOLESALE: 1.6%
14,000 Sysco Corp....................................... 589,750
----------
FOODS: 1.9%
40,500 Hormel Foods Corp................................ 680,906
----------
INSURANCE - DIVERSIFIED: 0.4%
3,133 Radian Group, Inc................................ 162,133
----------
MACHINERY - DIVERSIFIED: 1.1%
7,900 Cognex Corp.*.................................... 408,825
----------
MACHINERY - GENERAL: 1.4%
13,800 Deere & Co....................................... 510,600
----------
MANUFACTURING - DIVERSIFIED: 1.8%
1,500 Corning, Inc..................................... 404,813
7,400 Parker-Hannifin Corp............................. 253,450
----------
658,263
----------
MEDICAL - BIOMEDICAL GENETICS: 2.4%
12,300 Baxter International, Inc........................ 864,844
----------
OIL & GAS - FIELD SERVICES: 1.2%
12,200 Santa Fe International Corp...................... 426,238
----------
OIL - DOMESTIC INTEGRATED: 1.4%
8,600 Apache Corp...................................... 505,788
----------
</TABLE>
24
<PAGE>
SCHEDULE OF INVESTMENTS
AT JUNE 30, 2000
----------------------------------------------------------
BALANCED FUND
<TABLE>
<CAPTION>
SHARES VALUE
--------------------------------------------------------------------------
<C> <S> <C>
OIL - INTERNATIONAL INTEGRATED: 5.0%
18,100 EOG Resources, Inc............................... $ 606,350
15,100 Nabors Industries, Inc.*......................... 627,594
25,200 Suncor Energy, Inc............................... 587,475
----------
1,821,419
----------
PIPELINES: 1.8%
10,200 Enron Corp....................................... 657,900
----------
PRINTING SERVICES: 2.3%
21,850 Valassis Communications, Inc.*................... 833,031
----------
PUBLISHING: 2.7%
18,100 McGraw-Hill Companies, Inc....................... 977,400
----------
REAL ESTATE INVESTMENT TRUSTS: 2.3%
4,400 Avalonbay Communities, Inc....................... 183,700
4,300 Equity Residential Properties Trust.............. 197,800
13,600 Prologis Trust................................... 289,850
3,800 Spieker Properties, Inc.......................... 174,800
----------
846,150
----------
RETAIL - SPECIALTY: 1.7%
47,600 Blockbuster, Inc................................. 461,125
5,000 Circuit City Stores, Inc......................... 165,938
----------
627,063
----------
SUPER - REGIONAL BANKS: 0.8%
5,500 Wachovia Corp.................................... 298,375
----------
TELECOMMUNICATIONS - SERVICES: 1.1%
9,200 SBC Communications, Inc.......................... 397,900
----------
TRAVEL SERVICES: 1.3%
16,800 Sabre Holdings Corp.*............................ 478,800
----------
WIRELESS EQUIPMENT: 1.0%
12,000 Motorola, Inc.................................... 348,750
----------
TOTAL COMMON STOCKS
(cost $18,252,016).......................................... 20,931,097
----------
</TABLE>
25
<PAGE>
SCHEDULE OF INVESTMENTS
AT JUNE 30, 2000
----------------------------------------------------------
BALANCED FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------
<C> <S> <C>
BONDS: 40.6%
MORTGAGE PASS-THROUGH: 11.2%
$1,128,954 Federal Home Loan Mortgage Corp.,
6.00%, 7/1/2028.................................. $1,035,815
593,390 Federal Home Loan Mortgage Corp.,
7.50%, 4/1/2028.................................. 586,904
1,085,393 Federal National Mortgage Association,
6.50%, 7/1/2028.................................. 1,024,676
751,316 Federal National Mortgage Association,
7.00%, 10/1/2029................................. 725,253
720,893 Government National Mortgage Association,
8.00%, 12/15/2025................................ 729,003
----------
4,101,651
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS: 6.1%
500,000 Federal Home Loan Mortgage Corp.,
7.00%, 3/15/2010................................. 496,475
1,000,000 Federal National Mortgage Association,
5.75%, 4/15/2003................................. 968,320
760,000 Federal National Mortgage Association,
7.13%, 3/15/2007................................. 761,482
----------
2,226,277
----------
U.S. TREASURY OBLIGATIONS: 5.6%
1,200,000 United States Treasury Bonds,
7.25%, 5/15/2016................................. 1,322,628
450,000 United States Treasury Notes,
7.50%, 11/15/2001................................ 455,906
500,000 United States Treasury Strips,
11/1/2009........................................ 282,605
----------
2,061,139
----------
</TABLE>
26
<PAGE>
SCHEDULE OF INVESTMENTS
AT JUNE 30, 2000
----------------------------------------------------------
BALANCED FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------
<C> <S> <C>
CORPORATE: 17.7%
$ 850,000 Associates Corp. of North America,
5.88%, 5/16/2001................................. $ 840,250
700,000 Ball Corp.,
7.75%, 8/1/2006.................................. 661,500
960,000 Coca Cola Enterprises, Inc.,
6.38%, 8/1/2001.................................. 954,016
875,000 First Chicago NBD Corp.,
6.13%, 2/15/2006................................. 801,517
500,000 Friendly Ice Cream Corp.,
10.50%, 12/1/2007................................ 403,750
500,000 JC Penney, Inc.,
7.60%, 4/1/2007.................................. 436,830
500,000 Lear Corp.,
7.96%, 5/15/2005................................. 468,970
500,000 Lear Corp.,
8.11%, 5/15/2009................................. 451,425
750,000 PNC Funding Corp.,
6.13%, 2/15/2009................................. 663,428
300,000 Reliastar Financial Corp.,
8.00%, 10/30/2000................................ 301,917
500,000 Safeway, Inc.,
7.00%, 9/15/2007................................. 476,399
----------
6,460,002
----------
TOTAL BONDS
(cost $15,388,841).......................................... 14,849,069
----------
</TABLE>
27
<PAGE>
SCHEDULE OF INVESTMENTS
AT JUNE 30, 2000
----------------------------------------------------------
BALANCED FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENT: 3.0%
$1,111,000 State Street Trust Co., 3.50%, dated 06/30/00,
due 07/03/00, proceeds $1,111,320 [collateralized
by $1,110,000 U.S. Treasury Notes, 6.50%, due
08/31/01, value $1,133,588] (cost $1,111,000).... $1,111,000
----------
TOTAL INVESTMENTS IN SECURITIES
(cost $34,751,857+): 100.8%................................. 36,891,166
Liabilities in excess of Other Assets: (0.8)%................. (303,333)
----------
NET ASSETS: 100.00%........................................... $36,587,833
==========
</TABLE>
* NON-INCOME PRODUCING SECURITY.
+ AT JUNE 30, 2000, THE BASIS OF INVESTMENTS FOR FEDERAL INCOME TAX PURPOSES WAS
$34,782,494. UNREALIZED APPRECIATION AND DEPRECIATION WERE AS FOLLOWS:
<TABLE>
<C> <S> <C>
Gross unrealized appreciation............................. $3,759,986
Gross unrealized depreciation............................. (1,651,314)
----------
Net unrealized appreciation............................... $2,108,672
==========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
AT JUNE 30, 2000
----------------------------------------------------------
<TABLE>
<CAPTION>
SMALL-CAP VALUE+GROWTH BALANCED
FUND FUND FUND
------------ ------------- ------------
<S> <C> <C> <C>
ASSETS
Investments in securities, at cost $35,730,029 $26,331,278 $34,751,857
=========== =========== ===========
Investments in securities, at value $42,839,359 $29,595,606 $36,891,166
Cash 815 645 601
Receivables:
Securities sold 237,123 -- --
Dividends and interest 14,377 30,975 231,594
Fund shares sold 830,673 50 --
Due from advisor -- -- 32,729
Prepaid expenses and other assets 3,142 -- --
----------- ----------- -----------
Total assets 43,925,489 29,627,276 37,156,090
----------- ----------- -----------
LIABILITIES
Payables:
Securities purchased 627,174 -- 506,100
Fund shares redeemed 24,728 -- --
Due to advisor 29,445 20,622 --
Shareholder servicing fees 8,074 -- 11,516
Distributions to shareholders -- -- 732
Accrued expenses 62,636 51,579 49,909
----------- ----------- -----------
Total liabilities 752,057 72,201 568,257
----------- ----------- -----------
NET ASSETS $43,173,432 $29,555,075 $36,587,833
=========== =========== ===========
Number of shares issued and outstanding
(unlimited number of shares authorized,
$0.01 par value) 1,827,692 1,744,689 2,626,433
=========== =========== ===========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE $ 23.62 $ 16.94 $ 13.93
=========== =========== ===========
COMPONENTS OF NET ASSETS
Paid-in capital $32,998,604 $22,879,788 $31,363,031
Accumulated net investment income 3,900 2,090 1,636
Accumulated net realized gain on
investments 3,061,598 3,408,869 3,083,857
Net unrealized appreciation on investments 7,109,330 3,264,328 2,139,309
----------- ----------- -----------
Net assets $43,173,432 $29,555,075 $36,587,833
=========== =========== ===========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
29
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 2000
----------------------------------------------------------
<TABLE>
<CAPTION>
SMALL-CAP VALUE+GROWTH BALANCED
FUND FUND FUND
------------ ------------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME
Income
Dividends $ 102,153 $ 384,297 $ 291,062
Interest 15,101 18,681 1,127,382
----------- ----------- -----------
Total income 117,254 402,978 1,418,444
----------- ----------- -----------
Expenses
Advisory fees 341,698 272,263 277,139
Shareholder servicing fees 51,473 57,446 29,783
Administration fees 40,006 40,000 35,912
Custody and accounting fees 62,293 45,164 44,945
Legal fees 4,539 6,531 3,001
Audit fees 20,000 21,425 21,797
Transfer agent fees 51,962 45,031 46,367
Shareholder reporting fees 16,340 7,529 7,228
Registration expense 17,681 17,255 21,848
Trustee fees 14,323 13,182 13,415
Amortization of deferred organization
costs 2,212 2,212 986
Miscellaneous 1,367 14,499 2,937
----------- ----------- -----------
Total expenses 623,894 542,537 505,358
Less: fees waived (115,252) (137,595) (125,246)
----------- ----------- -----------
Net expenses 508,642 404,942 380,112
----------- ----------- -----------
NET INVESTMENT INCOME (LOSS) (391,388) (1,964) 1,038,332
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain on investments 8,129,566 3,909,122 4,443,886
Net unrealized appreciation (depreciation)
on investments 4,637,086 (1,533,508) (3,121,993)
----------- ----------- -----------
Net realized and unrealized gain on
investments 12,766,652 2,375,614 1,321,893
----------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $12,375,264 $ 2,373,650 $ 2,360,225
=========== =========== ===========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
----------------------------------------------------------
SMALL-CAP FUND
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
JUNE 30, 2000 JUNE 30, 1999
---------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS
Net investment loss $ (391,388) $ (274,582)
Net realized gain (loss) on
investments 8,129,566 (4,630,969)
Net unrealized appreciation
(depreciation) on investments 4,637,086 (3,474,243)
---------------- ----------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS 12,375,264 (8,379,794)
---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS
From net realized gain -- (5,303,746)
---------------- ----------------
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets
derived from net change in
outstanding shares (a) 214,012 (46,602,607)
---------------- ----------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS 12,589,276 (60,286,147)
NET ASSETS
Beginning of year 30,584,156 90,870,303
---------------- ----------------
END OF YEAR $ 43,173,432 $ 30,584,156
================ ================
Accumulated net investment income $ 3,900 $ --
================ ================
</TABLE>
(a) A summary of capital share transactions is as follows:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
JUNE 30, 2000 JUNE 30, 1999
--------------------- -----------------------
SHARES VALUE SHARES VALUE
-------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Shares sold 831,597 $17,447,304 1,911,091 $29,397,612
Shares issued in reinvestment of
distributions -- -- 370,081 5,022,337
Shares redeemed (900,222) (17,233,292) (5,143,333) (81,022,556)
-------- ----------- ---------- -----------
Net increase (decrease) (68,625) $ 214,012 (2,862,161) $(46,602,607)
======== =========== ========== ===========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
31
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
----------------------------------------------------------
VALUE+GROWTH FUND
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
JUNE 30, 2000 JUNE 30, 1999
---------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS
Net investment income (loss) $ (1,964) $ 81,986
Net realized gain on investments 3,909,122 1,495,633
Net unrealized depreciation on
investments (1,533,508) (357,291)
---------------- ----------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 2,373,650 1,220,328
---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (84,879) --
From net realized gain (974,823) (2,433,086)
---------------- ----------------
TOTAL DISTRIBUTIONS (1,059,702) (2,433,086)
---------------- ----------------
CAPITAL SHARE TRANSACTIONS
Net decrease in net assets derived
from net change in outstanding
shares (a) (10,072,019) (7,873,439)
---------------- ----------------
TOTAL DECREASE IN NET ASSETS (8,758,071) (9,086,197)
NET ASSETS
Beginning of year 38,313,146 47,399,343
---------------- ----------------
END OF YEAR $ 29,555,075 $ 38,313,146
================ ================
Accumulated net investment income $ 2,090 $ 81,986
================ ================
</TABLE>
(a) A summary of capital share transactions is as follows:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
JUNE 30, 2000 JUNE 30, 1999
----------------------- -----------------------
SHARES VALUE SHARES VALUE
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Shares sold 370,130 $ 5,976,405 485,266 $ 7,381,672
Shares issued in reinvestment of
distributions 68,972 1,055,965 170,397 2,423,047
Shares redeemed (1,080,284) (17,104,389) (1,195,319) (17,678,158)
---------- ----------- ---------- -----------
Net decrease (641,182) $(10,072,019) (539,656) $(7,873,439)
========== =========== ========== ===========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
----------------------------------------------------------
BALANCED FUND
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
JUNE 30, 2000 JUNE 30, 1999
---------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS
Net investment income $ 1,038,332 $ 1,406,185
Net realized gain on investments 4,443,886 4,408,560
Net unrealized depreciation on
investments (3,121,993) (3,149,185)
---------------- ----------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 2,360,225 2,665,560
---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (1,039,351) (1,419,256)
From net realized gain (3,849,150) (4,179,056)
---------------- ----------------
TOTAL DISTRIBUTIONS (4,888,501) (5,598,312)
---------------- ----------------
CAPITAL SHARE TRANSACTIONS
Net decrease in net assets derived
from net change in outstanding
shares (a) (8,597,521) (16,034,558)
---------------- ----------------
TOTAL DECREASE IN NET ASSETS (11,125,797) (18,967,310)
NET ASSETS
Beginning of year 47,713,630 66,680,940
---------------- ----------------
END OF YEAR $ 36,587,833 $ 47,713,630
================ ================
Accumulated net investment income $ 1,636 $ 6,316
================ ================
</TABLE>
(a) A summary of capital share transactions is as follows:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
JUNE 30, 2000 JUNE 30, 1999
----------------------- -----------------------
SHARES VALUE SHARES VALUE
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Shares sold 182,078 $ 2,555,026 313,760 $ 4,586,684
Shares issued in reinvestment of
distributions 350,149 4,665,745 378,678 5,376,083
Shares redeemed (1,132,202) (15,818,292) (1,785,419) (25,997,325)
---------- ----------- ---------- -----------
Net decrease (599,975) $(8,597,521) (1,092,981) $(16,034,558)
========== =========== ========== ===========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
33
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR.
----------------------------------------------------------
SMALL-CAP FUND
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30,
----------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year $ 16.13 $ 19.10 $ 21.83 $ 18.39 $ 14.12
------- ------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss (0.21) (0.14) (0.17) (0.01) (0.02)
Net realized and unrealized
gain (loss) on investments 7.70 (0.93) 2.40 4.04 5.25
------- ------- ------- ------- -------
Total from investment
operations 7.49 (1.07) 2.23 4.03 5.23
------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
From net realized gain -- (1.90) (4.96) (0.59) (0.96)
------- ------- ------- ------- -------
Net asset value, end of year $ 23.62 $ 16.13 $ 19.10 $ 21.83 $ 18.39
======= ======= ======= ======= =======
Total return 46.44% (3.78)% 10.29% 22.45% 38.46%
Net assets, end of year
(millions) $ 43.2 $ 30.6 $ 90.9 $ 123.1 $ 92.7
RATIO OF EXPENSES TO AVERAGE
NET ASSETS:
Before fees waived and
expenses absorbed 1.84% 1.89% 1.55% 1.39% 1.74%
After fees waived and
expenses absorbed 1.50% 1.50% 1.50% 1.50% 1.50%
RATIO OF NET INVESTMENT LOSS
TO AVERAGE NET ASSETS:
After fees waived and
expenses absorbed (1.14)% (0.66)% (0.59)% (0.08)% (0.35)%
Portfolio turnover rate 282.93% 179.91% 168.74% 304.88% 214.71%
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
34
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR.
----------------------------------------------------------
VALUE+GROWTH FUND
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30,
----------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $16.06 $16.20 $16.27 $ 13.69 $ 12.82
------ ------ ------ ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.00)+ 0.03 0.01 0.10 0.11
Net realized and unrealized gain
on investments 1.41 0.82 1.77 4.03 1.40
------ ------ ------ ------- -------
Total from investment operations 1.41 0.85 1.78 4.13 1.51
------ ------ ------ ------- -------
LESS DISTRIBUTIONS:
From net investment income (0.04) -- (0.04) (0.10) (0.13)
From net realized gain (0.49) (0.99) (1.81) (1.45) (0.51)
------ ------ ------ ------- -------
Total distributions (0.53) (0.99) (1.85) (1.55) (0.64)
------ ------ ------ ------- -------
Net asset value, end of year $16.94 $16.06 $16.20 $ 16.27 $ 13.69
====== ====== ====== ======= =======
Total return 9.15% 6.05% 11.54% 32.38% 12.11%
Net assets, end of year (millions) $ 29.6 $ 38.3 $ 47.4 $ 24.0 $ 21.3
RATIO OF EXPENSES TO AVERAGE NET
ASSETS:
Before fees waived and
expenses absorbed 1.68% 1.58% 1.48% 2.11% 2.12%
After fees waived and
expenses absorbed 1.25% 1.25% 1.25% 1.26% 1.35%
RATIO OF NET INVESTMENT INCOME
(LOSS) TO AVERAGE NET ASSETS:
After fees waived and
expenses absorbed (0.01)% 0.22% 0.09% 0.45% 0.78%
Portfolio turnover rate 79.33% 92.42% 60.51% 160.13% 101.05%
</TABLE>
+ AMOUNT REPRESENTS LESS THAN $0.01 PER SHARE.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
35
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR.
----------------------------------------------------------
BALANCED FUND
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30,
----------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $14.79 $15.44 $16.07 $ 14.69 $ 13.96
------ ------ ------ ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.37 0.36 0.31 0.38 0.43
Net realized and unrealized gain
on investments 0.58 0.38 1.05 2.78 1.27
------ ------ ------ ------- -------
Total from investment operations 0.95 0.74 1.36 3.16 1.70
------ ------ ------ ------- -------
LESS DISTRIBUTIONS:
From net investment income (0.37) (0.36) (0.32) (0.37) (0.43)
From net realized gain (1.44) (1.03) (1.67) (1.41) (0.54)
------ ------ ------ ------- -------
Total distributions (1.81) (1.39) (1.99) (1.78) (0.97)
------ ------ ------ ------- -------
Net asset value, end of year $13.93 $14.79 $15.44 $ 16.07 $ 14.69
====== ====== ====== ======= =======
Total return 7.26% 5.39% 8.96% 23.12% 12.56%
Net assets, end of year (millions) $ 36.6 $ 47.7 $ 66.7 $ 63.4 $ 47.0
RATIO OF EXPENSES TO AVERAGE NET
ASSETS:
Before fees waived and
expenses absorbed 1.28% 1.15% 1.37% 1.31% 1.49%
After fees waived and
expenses absorbed 0.95% 0.95% 1.00% 1.26% 1.35%
RATIO OF NET INVESTMENT INCOME TO
AVERAGE NET ASSETS:
After fees waived and
expenses absorbed 2.63% 2.41% 1.99% 2.62% 2.98%
Portfolio turnover rate 65.75% 91.64% 83.27% 91.90% 69.11%
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
36
<PAGE>
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------
NOTE 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
Small-Cap Fund (formerly known as the 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 Small-Cap Fund seeks to maximize long-term capital appreciation. This Fund
invests primarily in the common stock of 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.
NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds. These policies are in conformity with generally accepted
accounting principles.
A. SECURITY VALUATION. Investments in securities traded on a national
securities exchange or Nasdaq are valued at the last reported sales price at
the close of regular trading on each day that the exchanges are open for
trading; securities traded on an exchange or Nasdaq for which there have
been no sales and other over-the-counter securities are valued at the mean
between the closing bid and asked prices. Securities for which quotations
are not readily available are valued at their respective fair values 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.
37
<PAGE>
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------
B. FEDERAL INCOME TAXES. Each Fund intends to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and
to distribute all of its taxable income to its shareholders. Therefore, no
federal income tax provision is required.
C. SECURITY TRANSACTIONS, INVESTMENT INCOME AND DISTRIBUTIONS. Security
transactions are accounted for on the trade date. Dividend income and
distributions to shareholders are recorded on the ex-dividend date and
interest income is recognized on the accrual basis. Purchase discounts and
premiums on securities are accreted or 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 agreements and to determine on a daily basis that the value
of such securities is sufficient to cover the value of the repurchase
agreements.
D. USE OF ESTIMATES. The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of increases and decreases in net assets from operations during the
reporting periods. Actual results could differ from those estimates.
E. RECLASSIFICATION OF CAPITAL ACCOUNTS. The Funds account and report for
distributions to shareholders in accordance with the American Institute of
Certified Public Accountant's Statement of Position 93-2: DETERMINATION,
DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME, CAPITAL AND
RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES. For the year ended
June 30, 2000, the Small-Cap Fund decreased net realized gain on investments
by $395,288 primarily due to the Fund experiencing a net investment loss
during the year. For the year ended June 30, 2000, the Value+Growth Fund
decreased net realized gain on investments by $6,947 primarily due to the
Fund experiencing a net investment loss during the year. For the year ended
June 30, 2000, the Balanced Fund decreased accumulated net investment income
and increased accumulated net realized gain on investments by $3,661. Net
assets were not affected by these changes.
38
<PAGE>
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------
NOTE 3 -- COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS
Jurika & Voyles, L.P. (the "Adviser") provides the Funds with investment
management services under an Investment Management Agreement. The Adviser
furnishes all investment advice, office space, facilities, and most of the
personnel needed by the Funds. As compensation for its services, the Adviser is
entitled to a monthly fee at the annual rate of 1.00% for the Small-Cap Fund,
0.85% for the Value+Growth Fund and 0.70% for the Balanced Fund based upon the
average daily net assets of the Funds. For the year ended June 30, 2000, the
Small-Cap Fund incurred $341,698, Value+Growth Fund incurred $272,263 and
Balanced Fund incurred $277,139 in advisory fees.
The Funds are responsible for their own operating expenses. The Adviser has
agreed to limit the Funds' total expenses to not more than 1.50% for the
Small-Cap Fund, 1.25% for the Value+Growth Fund and 0.95% for the Balanced Fund
of average daily net assets. Any fee withheld and/ or any Fund expense absorbed
by the Adviser pursuant to an agreed upon expense cap shall be reimbursed by the
Funds to the Adviser, if so requested by the Adviser, provided the aggregate
amount of the Funds' current operating expenses for such fiscal year does not
exceed the applicable limitation on Fund expenses. For the year ended June 30,
2000, the Adviser waived fees of $115,252 for the Small-Cap Fund, $137,595 for
the Value+Growth Fund and $125,246 for the Balanced Fund.
At June 30, 2000, the amount available for reimbursement that has been paid
and/or waived by the adviser on behalf of the Funds are as follows:
<TABLE>
<S> <C>
Small-Cap Fund $340,225
Value+Growth Fund $348,639
Balanced Fund $488,025
</TABLE>
39
<PAGE>
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------
At June 30, 2000, the Adviser may recapture a portion of the above amounts no
later than the dates as stated below:
<TABLE>
<CAPTION>
June 30,
------------------------------
<S> <C> <C> <C>
Funds 2001 2002 2003
--------------------------------- -------- -------- --------
Small-Cap Fund $ 67,397 $157,576 $115,252
Value+Growth Fund $ 88,072 $122,972 $137,595
Balanced Fund $250,482 $112,297 $125,246
</TABLE>
Each Fund must pay its current ordinary operating expenses before the Adviser is
entitled to any reimbursement.
Nvest Services Company, Inc. ("Nvest"), an affiliate of the Adviser, acts as
servicing agent to the Funds. For the year ended June 30, 2000, the Small-Cap,
Value+Growth and Balanced Funds incurred $51,962, $45,031 and $46,367,
respectively, in transfer agent fees due to Nvest. Of these amounts, Nvest paid
$50,438, $43,627 and $44,539, respectively, to Boston Financial Data Services,
Inc. for its services as sub-transfer agent.
Pursuant to a Shareholder Services Plan (the "Plan"), the Funds will reimburse
the Adviser for any expenses incurred, not to exceed 0.25% of each Funds'
average daily net assets, for shareholder services provided. Under the Plan, the
Adviser as Services Coordinator will provide, or will arrange for others to
provide, certain specified shareholder services to 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 Plan, to a participating organization
for providing other administrative services to its customers who invest in
shares of the Funds.
Investment Company Administration, L.L.C. (the "Administrator") acts as the
Funds' administrator under an Administration Agreement. The Administrator
prepares various federal and state regulatory filings, reports and returns for
the Funds; prepares reports and materials to be supplied to the trustees;
monitors the activities of the Funds' custodian, transfer agent and accountants;
coordinates the preparation and payment of Fund expenses and reviews the Funds'
expense accruals. For its
40
<PAGE>
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------
services, the Administrator receives a monthly fee at the following annual rate,
with a minimum annual fee of $40,000 for each fund:
<TABLE>
<S> <C>
First $100 million 0.10% of average daily net assets of the
Trust
Next $150 million 0.05% of average daily net assets of the
Trust
Next $250 million 0.03% of average daily net assets of the
Trust
Next $250 million, 0.01% of average daily net assets of the
and thereafter Trust
</TABLE>
First Fund Distributors, Inc. (the "Distributor") acts as the Funds' principal
underwriter in a continuous public offering of the Funds' shares. The
Distributor is an affiliate of the Administrator.
Certain officers and trustees of the Trust are also officers and/or directors of
the Advisor, Administrator and the Distributor.
NOTE 4 -- PURCHASES AND SALES OF SECURITIES
The cost of purchases and the proceeds from sales of securities, excluding U.S.
Government Securities and short-term investments, for the year ended June 30,
2000, were as follows:
<TABLE>
<CAPTION>
Funds Purchases Sales
----- ----------- -----------
<S> <C> <C>
Small-Cap Fund $95,917,966 $96,897,440
Value+Growth Fund 24,987,087 35,280,927
Balanced Fund 20,969,510 36,766,321
</TABLE>
For the year ended June 30, 2000, the cost of purchases and the proceeds from
sales of U.S. Government securities for the Balanced Fund were $5,119,922 and
$5,976,973, respectively.
At June 30, 2000, the Small-Cap Fund had deferred capital losses occurring
subsequent to October 31, 1999, of $787,956. The Small-Cap Fund utilized
$3,435,951 of capital loss carryover in the current year.
NOTE 5 -- LINE OF CREDIT
The Trust has a $5 million unsecured line of credit. The interest rate charged
on borrowings is the Overnight Federal Funds rate, plus 0.375%. Each Fund also
pays its pro rata share of a commitment fee of 0.08% of the commitment. There
were no borrowings under this commitment during the fiscal year ended
June 30, 2000.
41
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
-------------------------------------------------
To the Board of Trustees and Shareholders of
Jurika & Voyles Fund Group
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Jurika & Voyles Small-Cap Fund,
Jurika & Voyles Value+Growth Fund and Jurika & Voyles Balanced Fund,
(constituting Jurika & Voyles Fund Group, hereafter referred to as the "Funds")
at June 30, 2000, and the results of each of their operations, the changes in
each of their net assets and the financial highlights for the year then ended,
in conformity with accounting principles generally accepted in the United
States. These financial statements and financial highlights (hereafter referred
to as "financial statements") are the responsibility of the Funds' management;
our responsibility is to express an opinion on these financial statements based
on our audit. We conducted our audit of these financial statements in accordance
with auditing standards generally accepted in the United States which require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audit, which included confirmation
of securities at June 30, 2000 by correspondence with the custodian and brokers,
provides a reasonable basis for the opinion expressed above. The financial
statements for the year ended June 30, 1999, including the financial highlights
for each of the periods prior to June 30, 2000, were audited by other
independent accountants whose report dated July 23, 1999 expressed an
unqualified opinion on those financial statements.
PricewaterhouseCoopers LLP
New York, New York
July 28, 2000
42
<PAGE>
[LOGO]
Jurika & Voyles Fund Group
P.O. Box 9291
Boston, MA 02205-8562
(800) JV-INVST
(800) 584-6878
