1838 INVESTMENT ADVISORS FUNDS, N-30D, 2001-01-04

1838 INVESTMENT ADVISORS FUNDS
N-30D, 2001-01-04

Previous: GENERAL MAGIC INC, 8-K, EX-99.1, 2001-01-04

Next: COMMUNITY FINANCIAL CORP /IL/, SC 13D, 2001-01-04

[1838 LOGO OMITTED]

INVESTMENT ADVISORS FUNDS
-------------------------

INTERNATIONAL EQUITY FUND

FIXED INCOME FUND

LARGE CAP EQUITY FUND

ANNUAL REPORT
OCTOBER 31, 2000

<PAGE>

[1838 LOGO OMITTED] INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------

FELLOW SHAREHOLDER:

The second half of the year proved to be disappointing for international
investors. The Fund's total return for the six-month period ended October 31,
2000 was -9.3% vs. Morgan Stanley Capital International's Europe, Australia and
Far East Index (the "EAFE") benchmark which was down 9.0%. October was a
particularly difficult month as worries about earnings in the telecommunications
and technology sectors intensified along with concerns about rising oil prices
and renewed tension in the Middle East. Asian markets were particularly hard hit
-- the Taiwanese and Korean markets were down over 10% in October.

However, for the full year, which ended October 31, 2000, total return for the
Fund was +5.1%, substantially outperforming the total return of the EAFE
benchmark at -2.9%.

SECTORS:

During the last six months, technology and telecommunication equipment stocks
experienced major reversals from the previous periods. Slowing demand for PC's,
falling prices for semiconductors and profit warnings, especially those of many
leading technology companies such as Intel, Oracle and Ericsson, eroded investor
sentiment. We sold positions in Pearson (UK media), Advantest (Japanese
semiconductor testing equipment) and Mobilcom (German cellular), which
contributed to limiting the Fund's losses. The purchases of TEVA Pharmaceutical
Industries (Israeli generic drug producer), Lufthansa (German airline), Endesa
(Spanish utility), Telefonica (Spanish telephone service) and Koninlijke Ahold
NV (Netherlands retail) provided additional diversification out of the
vulnerable sectors. Also, we made an opportunistic purchase of
STMicroelectronics (French semiconductor design and manufacture) after it had
fallen well off its peak.

The Fund's on-going philosophy of investing in market leaders with identifiable
and sustainable competitive advantages has continued to mitigate risk and
enhance Fund returns.

COUNTRY PERFORMANCES:

Continued weakness in the Euro and the British Pound put downward pressure on
returns for the six months ended October 31, 2000. The Euro was down almost 7%
along with the British Pound, which was down by 6.7%. In local currencies, some
of the foreign markets turned in respectable results in the second half. The
UK's FTSE 100 gained 1.8%, the German DAX Index was down 4.5% as was the French
CAC 40 Index, which was down by 0.3%. However in dollar denominated terms, major
market indices told a markedly different story. The UK's FTSE 100 fell almost
5.2%, the German DAX Index fell 11.1% and the French CAC 40 Index retraced half
of its first six month's gains with a 7.1% loss. With the exception of
Switzerland, all of the major European indices posted negative dollar
denominated results for the six months ended in October.

Even though the yen/$ exchange rate was virtually unchanged over the last six
months, the Japanese Nikkei 225 Index was down a dramatic 19.8%. Though
partially due to an untimely April shuffling of the index to more technology
oriented issues, other contributors to the decline included concerns about
further asset deflation, continued sales of cross shareholdings, and more
bankruptcies. Additionally, foreign investors have been net sellers of Japanese
shares.

The emerging markets have not done well due in part to the high correlation
these markets have to the NASDAQ and large exposure to electronics and
telecommunication equipment industries. Also, in times of uncertainty, investors
tend to stay away from markets with a high-risk premium. In local currencies,
the Taiwan Weighted Index was down 36.8% for the six months ended October and
the Korean KOSPI 200 Index was down 29.8%. The Fund's exposure to these markets
was approximately 7% of the portfolio.

Country weightings in the Fund continued to closely mirror that of the EAFE
benchmark. The exception was the underweighting of the UK at around 13% vs.
EAFE's weighting of about 21%. During the second half of the year, weightings
were increased in the Netherlands, France and Spain. The Fund was also slightly
underweighted in Japan at approximately 22% vs. EAFE's weighting of about 27%.

<PAGE>

[1838 LOGO OMITTED] INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------

OUTLOOK:

As a result of Central Banks having followed tight monetary policies while
raising interest rates, economic growth is expected to slow but not
dramatically. It can be argued that the performances of this year's stock
markets have already discounted the slowdown and that the worst may be over.
Both oil prices and interest rates may be close to their peaks. Traditionally
markets recover at a fairly healthy clip within six months after the peak in
interest rates.

This has been a difficult year for all the world's stock markets. According to
Chinese astrology, 2000 is the Year of the Metal Dragon. Metal Dragon years are
filled with unpredictability and brutal honesty. However, the metal element is
believed to create structure and expose important matters. It also intensifies
the need for introspection and individual decision making.

Sincerely,

/s/ HANS VAN DEN BERG

Hans van den Berg
Vice President & Portfolio Manager

November 20, 2000

INTERNATIONAL EQUITY FUND
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT*
[LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:

1838 International Equity Fund EAFE
8/3/95 10,000 10,000
10/95 9,610 9,544
10/96 10,485 10,544
10/97 12,082 11,032
10/98 12,916 12,096
10/99 16,675 14,882
10/00 17,519 14,451

AVERAGE ANNUAL TOTAL RETURNS
FOR THE PERIODS ENDED OCTOBER 31, 2000
----------------------------------------------
SINCE FINAL VALUE OF A
1 YEAR 5 YEAR INCEPTION $10,000 INVESTMENT
------ ------ --------- ------------------
FUND 5.06% 12.76% 11.27% $17,519
EAFE (2.90)% 7.94% 7.27% 14,451

*Past performance of the Fund is no guarantee of future results. The 1838
International Equity Fund commenced operations on August 3, 1995. The values
shown reflect a hypothetical initial investment of $10,000 with distributions
reinvested. Returns may be higher due to 1838 Investment Advisors, Inc.
maintenance of the Fund's expense cap. Please bear in mind that investing in
foreign securities involves special risks such as currency fluctuation, less
extensive regulation of foreign brokers and possible political instability. The
EAFE is an unmanaged index representing the market value weighted price of
1,100 stocks of the major stock exchanges in Europe, Australia and the Far East
without any associated expenses and the returns assume reinvestment of all
distributions. You cannot invest directly in an index. Please read the
prospectus carefully before investing. Distributed by MBIA Capital Management
Corporation. See the Financial Highlights on page 19 for more details.

<PAGE>

[1838 LOGO OMITTED] INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS OCTOBER 31, 2000
-----------------------------------------------------------------------------------------------------------------------------------

VALUE
INDUSTRY SHARES (NOTE 2)
-------- ------ -----------
COMMON STOCK -- 95.45%
AUSTRALIA -- 2.42%
<S> <C> <C> <C>
Broken Hill Proprietary Co. Metals & Mining....................... 108,000 $ 1,046,557
OneSteel Limited* Metals & Mining....................... 27,000 12,872
News Corp. Ltd. Media................................. 32,600 1,401,800
-------------
2,461,229
-------------
CANADA -- 1.16%
Nortel Networks Corp. Technology Hardware & Equipment....... 26,000 1,183,000
-------------
FINLAND -- 1.53%
Nokia Corp. - Sponsored ADR Technology Hardware & Equipment....... 36,400 1,556,100
-------------
FRANCE -- 14.59%
Hotels Restaurants & Leisure.......... 33,900 1,370,713
AXA, Inc. Insurance............................. 12,200 1,613,292
Christian Dior Consumer Durables & Apparel........... 25,600 1,299,856
Cap Gemini SA Software & Services................... 5,400 860,558
Lafarge Construction Materials ............... 11,714 863,879
Schlumberger Ltd. Energy ............................. 25,400 1,933,575
Societe Generale (A Shares) Banks................................. 33,736 1,913,146
Total SA (B Shares) Energy................................ 16,300 2,329,558
STMicroelectronics N.V. Technology Hardware & Equipment....... 30,000 1,558,125
Vivendi Utilities............................. 15,200 1,091,328
-------------
14,834,030
-------------
GERMANY -- 7.14%
BMW AG Automobiles & Components.............. 46,400 1,533,949
Fresenius Medical Care Health Care Equipment & Services...... 21,600 1,721,116
Henkel KGAA Chemicals............................. 24,600 1,282,445
Lufthansa Transportation - Airlines............. 56,000 1,106,044
Schering AG Pharmaceuticals & Biotechnology....... 29,100 1,620,641
7,264,195
-------------
HONG KONG -- 2.50%
China Telecom HK Ltd. - Sponsored ADR* Wireless Telecommunication Services . 38,400 1,176,000
Hutchison Whampoa Ltd. Diversified Financials................ 110,000 1,364,581
-------------
2,540,581
-------------
</TABLE>

See notes to financial statements.

<PAGE>

[1838 LOGO OMITTED] INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS-- CONTINUED OCTOBER 31, 2000
-----------------------------------------------------------------------------------------------------------------------------------

VALUE
INDUSTRY SHARES (NOTE 2)
-------- ------ -----------

IRELAND -- 2.14%
<S> <C> <C> <C>
Allied Irish Banks - Sponsored ADR Banks.................................... 44,300 $ 908,150
Elan Corp. PLC - Sponsored ADR* Pharmaceuticals & Biotechnology.......... 24,500 1,272,469
--------------
2,180,619
--------------
ISRAEL -- 1.47%
TEVA Pharmaceutical Ind. Pharmaceuticals & Biotechnology.......... 25,200 1,489,950
--------------
ITALY -- 2.90%
Pirelli SPA Automobiles & Components................. 486,000 1,408,934
Unicredito Italiano SPA Banks.................................... 243,000 1,235,907
Unicredito Italiano RNC Banks.................................... 75,000 298,805
--------------
2,943,646
--------------
JAPAN -- 21.10%
Bank of Tokyo-Mitsubishi Ltd. Banks.................................... 55,000 659,355
Fanuc Ltd. Capital Goods............................ 16,800 1,507,830
Fast Retailing Co. Ltd. Retailing................................ 6,200 1,524,590
Honda Motor Co. Ltd. Automobiles & Components ................ 24,000 828,647
Hoya Corp. Health Care Equipment & Services......... 17,000 1,404,341
KAO Corp. Household & Personal Products............ 60,000 1,796,868
Kyocera Corp. Technology Hardware & Equipment.......... 10,700 1,391,519
Minebea Co. Ltd. Capital Goods............................ 100,000 998,260
Murata Manufacturing Co. Ltd. Technology Hardware & Equipment.......... 8,000 956,864
NEC Corp. Technology Hardware & Equipment.......... 90,000 1,714,443
Nomura Securities Co. Ltd. Diversified Financials................... 70,000 1,484,110
Promise Co. Ltd. Diversified Financials................... 20,000 1,500,137
Sony Corp. Consumer Durables & Apparel.............. 16,800 1,394,400
Takeda Chemical Inds. Pharmaceuticals & Biotechnology.......... 32,000 2,107,153
Takefuji Corp. Diversified Financials................... 12,500 1,236,377
Tokio Marine & Fire Insurance Insurance................................ 86,000 949,867
--------------
21,454,761
--------------
Mexico -- 2.75%
Telefonos de Mexico - Sponsored ADR Diversified Telecommunication Services . 23,500 1,267,531
Wal-Mart de Mexico* Retailing................................ 64,800 1,530,900
--------------
2,798,431
--------------
</TABLE>

See notes to financial statements.

<PAGE>

VALUE
INDUSTRY SHARES (NOTE 2)
-------- ------ -----------

NETHERLANDS -- 8.72%
<S> <C> <C> <C>
Aegon NV Insurance................................ 36,958 $ 1,466,165
Akzo Nobel Materials................................ 27,900 1,268,827
ING Groep NV Diversified Financials................... 30,546 2,095,263
Koninlijke Ahold NV Retailing................................ 55,630 1,614,152
Philips Electronics - NY Shares Consumer Durables & Apparel.............. 60,598 2,420,133
-------------
8,864,540
-------------
SINGAPORE -- 2.04%
DBS Group Holdings Banks.................................... 102,855 1,212,816
Singapore Airlines, Ltd. Transportation - Airlines................ 86,200 864,210
-------------
2,077,026
-------------
SOUTH KOREA -- 1.69%
Samsung Electronics Co. Technology Hardware & Equipment.......... 5,600 701,538
SK Telecom Co. Ltd. Wireless Telecommunication Services...... 4,790 1,021,165
-------------
1,722,703
-------------
SPAIN -- 4.62%
Banco Bilboa Vizcaya Argentaria Banks.................................... 81,000 1,077,986
Endesa SA Electric Utilities....................... 60,000 976,519
Telefonica SA - Sponsored ADR* Telecommunication Services .............. 45,600 2,641,950
-------------
4,696,455
-------------
SWEDEN -- 1.40%
ABB Ltd. Capital Goods............................ 16,095 1,426,383
-------------
SWITZERLAND -- 3.91%
Adecco SA - Registered Shares Commercial Services & Supplies........... 2,700 1,866,470
Nestle SA - Sponsored ADR Food Beverage & Tobacco.................. 20,400 2,106,300
-------------
3,972,770
-------------
TAIWAN -- 1.17%
Taiwan Semiconductor - Sponsored ADR* Technology Hardware & Equipment.......... 52,472 1,190,459
-------------
UNITED KINGDOM -- 12.20%
BP Amoco PLC Oil & Gas................................ 280,958 2,384,638
HSBC Holdings PLC Banks.................................... 144,754 2,013,798
Misys PLC Software & Services...................... 92,606 962,828
Prudential Corp. PLC Insurance................................ 85,000 1,147,268
</TABLE>

See notes to financial statements.

<PAGE>

VALUE
INDUSTRY SHARES (NOTE 2)
-------- ------ -----------

UNITED KINGDOM -- (CONTINUED)
<S> <C> <C> <C>
Royal Bank of Scotland Group - Value Shares* Banks.................................... 55,216 $ 65,346
Royal Bank of Scotland Group PLC* Banks.................................... 55,612 1,250,883
Shell Transport & Trading Oil & Gas................................ 35,100 1,726,481
Vodafone Airtouch PLC Wireless Telecommunication Services...... 683,989 2,853,025
------------
......................................... 12,404,267
------------
TOTAL COMMON STOCK (Cost $84,974,682) ......................................... 97,061,145
------------
SHORT-TERM INVESTMENTS -- 6.68%
Evergreen Select Money Market -I ........................................................ 3,395,340 3,395,340
Evergreen Select Money Market -IS ....................................................... 3,395,701 3,395,701
------------
TOTAL SHORT-TERM INVESTMENTS (Cost $6,791,041) ............................................. 6,791,041
------------
TOTAL INVESTMENTS (Cost $91,765,723)+ -- 102.13%............................................ $103,852,186

OTHER ASSETS AND LIABILITIES, NET-- (2.13)% ................................................ (2,166,591)
------------
NET ASSETS-- 100.00% ....................................................................... $101,685,595
============

MARKET SECTOR DIVERSIFICATION (UNAUDITED)
As a Percentage of Total Common Stocks
Consumer Discretionary -- 14.43% Industrials -- 9.46%
Consumer Staples -- 5.68% Information Technology -- 11.72%
Energy -- 8.63% Materials -- 4.61%
Financials -- 24.20% Telecommunication Services -- 9.23%
Health Care -- 9.91% Utilities -- 2.13%

<FN>
* Non-income producing securities.

+ The cost for federal income tax purposes was $91,765,723. At October 31, 2000, net unrealized appreciation was $12,086,463.
This consisted of aggregate gross unrealized appreciation for all securities for which there was an excess of market value
over tax cost of $23,232,788, and aggregate gross unrealized depreciation for all securities for which there was an excess of
tax cost over market value of $11,146,325.

ADR -- American Depository Receipt
</FN>
</TABLE>

See notes to financial statements.

<PAGE>

[1838 LOGO OMITTED] FIXED INCOME FUND
--------------------------------------------------------------------------------

TO THE SHAREHOLDER:

What a wild ride in the fixed income markets! As the market breathed a
collective sigh of relief at the end of the millennium as Y2K passed without
event, market participants were faced with a new set of challenges. Among them
were an aggressive Fed (raising the Federal Funds rate 100 basis points in the
first half of the year), equity market volatility, and massive budget surpluses
wreaking havoc on the shape of the treasury yield curve. The two-year Treasury
note yielded as much as 75 basis points more than the 30 year Treasury bond in
the second quarter. The curve inversion was driven by technicals as market
participants believed that the federal government would significantly reduce the
deficit and limit the amount of new debt issued, especially in the long end. The
curve flattened significantly from its wides in the third quarter as the
realization that budget surpluses would be less than anticipated as the
presidential election heated up. Regardless of who was going to be our next
leader there was going to be less money to go around, with Gore's plan of
greater spending vs. Bush's tax cuts. From the beginning of the year, the entire
yield curve rallied with the intermediate and long end outperforming. The gains
in the treasury market were tempered by a systematic widening in spread product
(corporates, mortgages, and agencies,) which turned in one of their worst years
rivaling the Asian crisis in 1998.

FIXED INCOME FUND
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT*

[LINE GRAPH OMITTED]
PLOT POINT FOLLOWS:

1838 Fixed Income Fund Lehman Aggregate
9/2/97 10,000 10,000
10/97 10,270 10,295
10/98 10,913 11,257
10/99 10,999 11,316
10/00 11,696 12,142

AVERAGE ANNUAL TOTAL RETURNS
FOR THE PERIODS ENDED OCTOBER 31, 2000
---------------------------------------------------
SINCE FINAL VALUE OF A
1 YEAR INCEPTION $10,000 INVESTMENT
------ --------- ------------------
FUND 6.33% 5.07% $11,696
LEHMAN AGGREGATE 7.30% 6.33% 12,142

*Past performance of the Fund is no guarantee of future results. The 1838 Fixed
Income Fund commenced operations on September 2, 1997. The values shown reflect
a hypothetical initial investment of $10,000 with distributions reinvested.
Returns are higher due to 1838 Investment Advisors, Inc. maintenance of the
Fund's expense cap. The Lehman Aggregate Index is an unmanaged index which
consists of bond issues spread over the investment grade bond universe and does
not have any associated expenses and the returns assume reinvestment of all
interest income. You cannot invest in an index. Please read the prospectus
carefully before investing. Distributed by MBIA Capital Management Corporation.
See the Financial Highlights on page 20 for more details.

<PAGE>

[1838 LOGO OMITTED] FIXED INCOME FUND
--------------------------------------------------------------------------------

The Fund returned 6.33% (net of fees & expenses) for the year ended October 31,
2000 vs. the Lehman Aggregate Bond Index (the "Lehman Aggregate") posting a
7.30% return. Inception to date (September 1997 through October 2000) the Fund
returned 16.96% compared to the Lehman Aggregate return of 21.42% for the same
period. The Fund's underperformance can be attributed to its core overweight in
high quality spread product with emphasis in the corporate sector. In particular
the Fund's under-performance in the first three months of the calendar year
corresponded with the under-performance of the corporate market in general (as
we were overweight in corporates in the thirty-year sector). Longer dated
corporate bonds under-performed in this period as the Treasury curve inverted
and longer spread product needed to widen to compensate for the shift in the
curve dynamics. The Fund adjusted its position throughout the year to a more
bulleted position in the spread sectors and overweight in the front-end of the
curve, where we found the valuations to be very compelling. This strategy
allowed the portfolio to earn the attractive coupons offered while dampening
some of the volatility of a longer maturity corporate portfolio. As a result,
despite this volatility in the markets, the Fund was ranked in the top quartile
for its category (based on Lipper data).

The Fund will maintain its neutral duration and overweight in spread product, as
we believe the sector to be undervalued on a historical and fundamental basis.
We continue to believe the key to outperformance will be superior issue
selection in the current environment of earnings disappointments and heightened
event risk.

The Fund's exposure, based on long-term market value, compared to the Lehman
Aggregate at October 31, 2000 was as follows:

1838 FIXED LEHMAN AGGREGATE
INCOME FUND BOND INDEX
------------- ---------------
Corporate Bonds.......................... 37.7% 23.7%
Mortgage-Backed.......................... 36.6% 36.4%
Asset-Backed............................. 10.0% 1.7%
Agencies................................. 7.2% 10.4%
Treasuries............................... 8.5% 27.8%

Sincerely,

/s/ CLIFFORD D. CORSO

Clifford D. Corso
Vice President & Portfolio Manager

November 20, 2000

<PAGE>

[1838 LOGO OMITTED] FIXED INCOME FUND
SCHEDULE OF INVESTMENTS OCTOBER 31, 2000
--------------------------------------------------------------------------------------------------------------------------------

MOODY'S/S&P PRINCIPAL VALUE
RATING AMOUNT (NOTE 2)
------------ -------- -----------
CORPORATE BONDS -- 37.14%

FINANCIAL -- 21.34%
<S> <C> <C> <C>
Bank of America, 7.80%, 02/15/10................................... Aa3/A $1,850,000 $ 1,878,928
CIT Group Inc., 7.375%, 03/15/03................................... A1/A+ 3,180,000 3,186,716
Citigroup Inc., 7.25%, 10/01/10.................................... Aa3/A+ 3,665,000 3,635,790
First Union National Bank, 7.80%, 08/18/10......................... A1/A 3,270,000 3,262,351
Ford Motor Credit Co., 7.875%, 06/15/10............................ A2/A 3,300,000 3,327,737
Household Finance Co., 7.875%, 03/01/07............................ A2/A 1,355,000 1,369,830
Lehman Brothers Holdings, 8.25%, 06/15/07.......................... A3/A 2,320,000 2,368,075
Province of Quebec, 7.50%, 09/15/29................................ A2/A+ 2,260,000 2,284,869
Spear Leeds Kellogg L.P., 8.25%, 08/15/05.......................... A3/BBB+ 2,105,000 2,188,150
Sprint Capital Corp., 7.625%, 06/10/02............................. Baa1/BBB+ 2,595,000 2,613,048
UBS PFD Funding Trust I, 8.622%, 10/29/49.......................... aa2/AA- 2,775,000 2,804,218
Westdeutsche Landesbank NY, 6.05%, 01/15/09........................ Aa1/AA+ 3,930,000 3,583,885
-----------
32,503,597
-----------
INDUSTRIAL & MISCELLANEOUS -- 15.80%
Conoco Inc., 6.95%, 04/15/29....................................... A3/A- 1,370,000 1,273,685
DaimlerChrysler NA Hldg., 8.00%, 06/15/10.......................... A1/A+ 2,335,000 2,387,533
Delta Air Lines Inc., 8.30%, 12/15/29.............................. Baa3/BBB- 2,380,000 2,036,883
Deutsche Telekom International, 8.25%, 06/15/30.................... A2/A- 2,210,000 2,262,041
Koninklijke KPN NV, 7.50%, 10/01/05................................ A3/A- 2,030,000 2,016,947
Lockheed Martin Corp., 8.20%, 12/01/09............................. Baa3/BBB- 2,640,000 2,770,524
Tyco Int'l. Group, 6.25%, 6/15/03.................................. Baa1/A- 2,505,000 2,433,650
Tyco Int'l. Group, 7.00%, 6/15/28.................................. Baa1/A- 3,200,000 2,847,165
United Dominion Inds., 8.625%, 3/15/03............................. Baa2/BBB 3,060,000 3,108,984
Yosemite Sec. Trust I, 8.25%, 11/15/04, 144A*...................... Baa1/BBB+ 2,900,000 2,935,629
-----------
24,073,041
-----------
TOTAL CORPORATE BONDS (Cost $56,308,289)........................................................... 56,576,638
-----------
ASSET BACKED SECURITIES -- 9.86%
Bear Stearns CMS, Ser. 1999-WF2 Cl. A2, 7.08%, 06/15/09............ Aaa/AAA 2,585,000 2,582,405
Mortgage Lenders Network, Ser. 2000-1, Cl. A2, 7.605%, 06/25/21.... Aaa/AAA 2,925,000 2,938,806
Navistar Financial Corp. Owner Trust, Ser. 2000-A, Cl. A3,
7.20%, 05/17/04................................................. Aaa/AAA 2,575,000 2,588,828
Textron Financial Corp., Ser. 2000-B, Cl. A3, 6.99%, 03/15/06...... Aaa/AAA 3,960,000 3,942,675
Union Acceptance Corp, Ser. 1999-D, Cl. A4, 6.85%, 02/08/06........ Aaa/AAA 2,960,000 2,973,853
-----------
Total Asset Back Securities (COST $14,975,622)......................................................... 15,026,567
-----------
</TABLE>

See notes to financial statements.

<PAGE>

[1838 LOGO OMITTED] FIXED INCOME FUND
SCHEDULE OF INVESTMENTS -- CONTINUED OCTOBER 31, 2000
--------------------------------------------------------------------------------------------------------------------------------

MOODY'S/S&P PRINCIPAL VALUE
RATING AMOUNT (NOTE 2)
------------ -------- -----------

MORTGAGE BACKED SECURITIES -- 36.15%
<S> <C> <C> <C>
FGCI, Pool # E00617, 5.50%, 01/1/14............................. Aaa/AAA $ 990,137 $ 936,417
FGCI, Pool # E00765, 6.50%, 12/01/14............................ Aaa/AAA 2,107,453 2,065,565
FGCI, Pool # G10557, 6.50%, 07/01/11 ........................... Aaa/AAA 1,785,995 1,757,548
FGLMC, Pool # C29190, 6.50%, 07/01/29........................... Aaa/AAA 2,347,879 2,259,228
FGLMC, Pool # C80342, 6.50%, 09/01/25 .......................... Aaa/AAA 1,489,301 1,439,652
FGLMC, Pool # C30260, 7.50%, 08/01/29........................... Aaa/AAA 1,198,084 1,198,189
FGLMC, Pool # D85515, 6.50%, 01/01/28........................... Aaa/AAA 2,056,208 1,982,793
FGLMC, Pool # C36177, 8.00%, 02/15/30........................... Aaa/AAA 2,489,611 2,524,162
FHLMC, Pool # A00930, 10.00%, 05/01/20.......................... Aaa/AAA 26,118 27,464
FHLMC, Pool # C00967, 8.50%, 02/01/30........................... Aaa/AAA 2,033,167 2,081,959
FNCI, Pool # 303728, 6.00%, 01/01/11............................ Aaa/AAA 1,642,225 1,596,287
FNCL, Pool # 482515, 5.50%, 01/01/14............................ Aaa/AAA 313,100 295,784
FNCL, Pool # 252381, 5.50%, 04/01/14............................ Aaa/AAA 134,258 126,719
FNCL, Pool # 535003, 7.00%, 11/01/14............................ Aaa/AAA 1,974,939 1,966,782
FNCL, Pool # 190275, 8.00%, 11/01/26............................ Aaa/AAA 1,764,970 1,789,639
FNCL, Pool # 481429, 6.00%, 01/01/29............................ Aaa/AAA 1,930,239 1,813,975
FNCL, Pool # 487830, 6.00%, 03/01/29............................ Aaa/AAA 3,607,849 3,384,458
FNCL, Pool # 491805, 6.50%, 06/01/29............................ Aaa/AAA 1,860,026 1,788,802
FNCL, Pool # 496524, 6.00%, 06/01/29............................ Aaa/AAA 376,938 353,599
FNCL, Pool # 498610, 6.00%, 05/01/29............................ Aaa/AAA 1,882,191 1,765,649
FNCL, Pool # 515959, 7.50%, 11/01/29............................ Aaa/AAA 4,913,647 4,909,348
FNCL, Pool # 516898, 7.00%, 01/01/30............................ Aaa/AAA 242,292 237,620
FNCL, Pool # 522898, 8.00%, 01/01/30............................ Aaa/AAA 898,564 909,862
FNCL, Pool # 526025, 8.00%, 01/01/30............................ Aaa/AAA 1,924,103 1,948,071
FNCL, Pool # 253463, 7.50%, 09/01/30............................ Aaa/AAA 844,204 843,031
FNCX, Pool # 313411, 7.00%, 03/01/04............................ Aaa/AAA 147,285 147,259
FNCX, Pool # 250890, 7.00%, 04/01/04............................ Aaa/AAA 1,085,504 1,086,246
GNSF, Pool # 6937, 8.50%, 12/15/05.............................. Aaa/AAA 3,530 3,614
GNSF, Pool # 780374, 7.50%, 12/15/23 ........................... Aaa/AAA 1,276,007 1,286,113
GNSF, Pool # 417239, 7.00%, 02/15/26............................ Aaa/AAA 2,475,550 2,446,089
GNSF, Pool # 443623, 6.50%, 02/15/28............................ Aaa/AAA 1,908,539 1,843,153
GNSF, Pool # 462556, 6.50%, 02/15/28............................ Aaa/AAA 2,463,403 2,380,177
GNSF, Pool # 377671, 6.50%, 03/15/28............................ Aaa/AAA 346,650 334,938
GNSF, Pool # 448178, 6.50%, 03/15/28............................ Aaa/AAA 174,630 168,730
GNSF, Pool # 491223, 7.00%, 03/15/29............................ Aaa/AAA 2,930,159 2,890,781
GNSF, Pool # 509609, 7.00%, 07/15/29............................ Aaa/AAA 2,113,260 2,084,860
GNSF, Pool # 528190, 7.50%, 04/15/30............................ Aaa/AAA 258,700 259,715
G2SF, Pool # 2038, 8.50%, 07/20/25.............................. Aaa/AAA 126,706 129,433
------------
TOTAL MORTGAGE BACKED SECURITIES (Cost $55,134,670)............................................... 55,063,711
------------
</TABLE>

See notes to financial statements.

<PAGE>

PRINCIPAL VALUE
AMOUNT (NOTE 2)
-------- -----------
U.S. GOVERNMENT AGENCY OBLIGATIONS** -- 7.10%
<S> <C> <C>
FHLB, 5.93%, 05/24/04...................................................... $ 2,500,000 $ 2,437,172
FHLMC, 5.00%, 01/15/04..................................................... 2,580,000 2,470,943
FNMA, 7.25%, 01/15/10...................................................... 5,700,000 5,906,448
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $10,651,851).............................. 10,814,563
------------
U.S. TREASURY OBLIGATIONS** -- 8.37%
U.S. Treasury Notes, 6.125%, 08/31/02...................................... 2,680,000 2,686,368
U.S. Treasury Notes, 6.75%, 05/15/05....................................... 2,740,000 2,840,610
U.S. Treasury Notes, 5.75%, 08/15/10....................................... 2,060,000 2,058,070
U.S. Treasury Bonds, 6.75%, 08/15/26....................................... 1,295,000 1,425,309
U.S. Treasury Bonds, 6.125%, 8/15/29....................................... 3,605,000 3,733,428
------------
TOTAL U.S. TREASURY OBLIGATIONS (Cost $12,682,273)...................... 12,743,785
------------

SHARES
--------
SHORT-TERM INVESTMENT -- 0.08%
SEI Daily Income Trust Prime Obligation (Cost $120,661).................... 120,661 120,661
------------
TOTAL INVESTMENTS (Cost $149,873,366)+ -- 98.70%.................................................. $150,345,925

OTHER ASSETS AND LIABILITIES, NET -- 1.30%........................................................ 1,972,922
------------

NET ASSETS -- 100.00%............................................................................. $152,318,847
============

<FN>
* Resale restricted to institutional buyers.

** While no ratings are shown for U.S. Government Agency Obligations and U.S. Treasury Obligations, they are considered to be of
the highest quality, comparable to Moody's AAA rating and S&P's Aaa rating.

+ The cost for federal income tax purposes was $149,983,175. At October 31, 2000, net unrealized appreciation was $362,750.
This consisted of aggregate gross unrealized appreciation for all securities for which there was an excess of market value
over tax cost of $1,269,286, and aggregate gross unrealized depreciation for all securities for which there was an excess of
tax cost over market value of $906,536.
</FN>
</TABLE>

See notes to financial statements.

<PAGE>

[1838 LOGO OMITTED] LARGE CAP EQUITY FUND
--------------------------------------------------------------------------------

TO THE SHAREHOLDER:

Following several consecutive years of capital appreciation exceeding 20%
annually, stocks were held at bay through most of this year, principally by two
economic factors: rising interest rates and oil prices. For the first time since
1994, Alan Greenspan used his chief monetary weapon to attempt to cool the white
hot pace of economic activity. Coincidentally, OPEC nations orchestrated an
increase in oil prices that occurred during renewed tensions in the Middle East.
This combination, along with other factors, such as a steep decline in the value
of the Euro, produced a mood shift in equity investors, resulting in a gain of
only 6.10% for the S&P 500 Index (the "S&P") during the Fund's fiscal year ended
October 31st. Most of that gain was earned in the last few months of 1999, and
the Index price has actually declined over 10% since late March.

Examining the economic sectors of the S&P, we find that Healthcare, Finance,
Energy, and Technology issues, in that order, produced most of the gain. While
Tech stocks appreciated over 12% during the period, this number hides the
meteoric rise in the value of those stocks that took place in the fourth quarter
of last year, culminating in March this year. Many tech issues have lost one
third to one half their value in the months since then. Rather, it was
Healthcare stocks, with returns approaching 20% for the period, that powered the
6.1% Index gain. Only two sectors, Consumer Cyclical and Deregulated Industries,
produced negative returns during the Fund's fiscal year, each down about 7%.

LARGE CAP EQUITY FUND
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT*

[LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:

1838 Large Cap Equity Fund S&P 500
9/29/99 10,000 10,000
10/99 10,610 10,753
10/00 11,123 11,409

Average Annual Total Returns
for the Periods Ended October 31, 2000
--------------------------------------
Since Final Value of a
1 Year Inception $10,000 Investment
----- --------- ------------------
Fund 4.83% 10.25% $11,123
S&P 500 6.10% 12.85% 11,409

*Past performance is no guarantee of future results. The 1838 Large Cap Equity
Fund commenced operations on September 29, 1999. The values shown reflect a
hypothetical initial investment of $10,000 with distributions reinvested.
Returns are higher due to 1838 Investment Advisors, Inc. maintenance of the
Fund's expense cap. The S&P 500 Index is an unmanaged stock market index
without any associated expenses and the returns assume reinvestment of all
dividends. You cannot invest directly in an index. Please read the prospectus
carefully before investing. Distributed by MBIA Capital Management Corporation.
See the Financial Highlights on page 21 for more details.

<PAGE>

[1838 LOGO OMITTED] LARGE CAP EQUITY FUND
--------------------------------------------------------------------------------

The Fund appreciated 4.83%, net of expenses, during its first full fiscal year
ended October 31, 2000. The Fund remained fully invested in stocks by carrying a
minimal cash balance. Furthermore, the Fund's sector participation was very
close to that of the S&P sector weights. Both positions are elements of the
Fund's Large Cap Core style that negates market timing and active sector
betting.

The Fund's stock selection proved to be additive in the Healthcare, Energy and
Technology arenas. Some of the best performers during the year were Medtronic
and Merck, Exxon Mobil and Transocean Sedco Forex, EMC and Cisco, in each
respective sector. Conversely, the Fund's portfolio hit snags in other areas,
particularly Deregulated Industries. Telecommunications holdings underperformed,
especially those involved in long distance such as Sprint and Worldcom. These
stocks have been sold from the portfolio.

With the presidential election still in limbo at this writing, it is difficult
to forecast what, if any, important legislative issues may unfold in the coming
year. Rather, it is best to close this review with a few observations that bring
current the very issues (mentioned above) leading to the anemic returns of
fiscal 2000. Chairman Greenspan appears to have been successful in slowing
national real economic growth to a more sustainable level. In fact, we believe
that the Fed's next move may actually be to lower rates. Meanwhile, interest
rates in the bond market have already declined from their peaks. Stable economic
growth, not recession, is a reasonable expectation for the coming year. As for
energy prices, OPEC attempts to keep production controlled to avoid a glut later
next Spring, so we believe the $30+ price per barrel may be sustained. While it
is certainly higher than levels 2 years ago, this price is substantially below
the over $80 per barrel current equivalent of prices experienced during the
embargoes of the `70s, and there is no political tone that would suggest a
return to that era. With this backdrop, we hope to see more material stock
returns during the next year.

Sincerely

/s/ GEORGE W. GEPHART, JR.

George W. Gephart, Jr.
Vice President & Portfolio Manager

November 20, 2000

<PAGE>

<TABLE>
<CAPTION>
[1838 LOGO OMITTED] LARGE CAP EQUITY FUND
SCHEDULE OF INVESTMENTS OCTOBER 31, 2000
-----------------------------------------------------------------------------------------------------------------

VALUE
SHARES (NOTE 2)
------ ----------
COMMON STOCK -- 100.10%

BASIC INDUSTRIES -- 9.73%
<S> <C> <C>
E.I. Dupont de Nemours & Co. .............................................. 4,600 $ 208,725
General Electric Co. ...................................................... 22,500 1,233,281
Tyco International Ltd. ................................................... 8,600 487,513
------------
1,929,519
------------
CONSUMER CYCLICAL -- 12.98%
CVS Corp. ................................................................. 8,300 439,381
Interpublic Group of Cos. ................................................. 11,600 498,075
McGraw-Hill Cos., Inc. .................................................... 6,800 436,475
Staples Inc. .............................................................. 14,300 203,775
Target Corp. .............................................................. 12,000 331,500
Viacom Inc. (B Shares)* ................................................... 6,100 346,938
Wal-Mart Stores Inc. ...................................................... 7,000 317,625
------------
2,573,769
------------
CONSUMER STAPLES -- 5.98%
Estee Lauder Cos. Inc. (A Shares) ......................................... 8,700 404,006
Pepsico ................................................................... 8,800 426,250
Safeway Inc.* ............................................................. 6,500 355,469
------------
1,185,725
------------
ENERGY -- 8.24%
BP Amoco PLC - Sponsored ADR .............................................. 6,200 315,813
Exxon Mobil Corp. ......................................................... 7,604 678,182
Schlumberger Ltd. ......................................................... 4,300 327,337
Transocean Sedco Forex Inc. ............................................... 5,909 313,177
------------
1,634,509
------------
FINANCIAL -- 15.53%
American International Group .............................................. 7,750 759,500
Citigroup Inc. ............................................................ 15,167 798,146
Fifth Third Bancorp ....................................................... 8,100 416,137
Firstar Corp. ............................................................. 16,200 318,938
Goldman Sachs Group Inc. .................................................. 1,800 179,662
Wells Fargo Co. ........................................................... 13,100 606,694
------------
3,079,077
------------
</TABLE>

See notes to financial statements.

<PAGE>

<TABLE>
<CAPTION>
[1838 LOGO OMITTED] LARGE CAP EQUITY FUND
SCHEDULE OF INVESTMENTS-- CONTINUED OCTOBER 31, 2000
-----------------------------------------------------------------------------------------------------------------

VALUE
SHARES (NOTE 2)
------ -----------
HEALTHCARE -- 12.93%
<S> <C> <C>
Abbott Laboratories ....................................................... 10,300 $ 543,969
Lilly (Eli) & Co. Inc. .................................................... 6,200 554,125
Medtronic Inc. ............................................................ 11,000 597,437
Merck & Co., Inc. ......................................................... 5,000 449,687
Schering-Plough Corp. ..................................................... 8,100 418,669
-----------
2,563,887
-----------
TECHNOLOGY -- 27.43%
America Online Inc.*....................................................... 5,200 262,236
Applied Materials Inc.*.................................................... 3,900 207,188
Cisco Systems Inc.*........................................................ 15,500 835,062
EMC Corp.*................................................................. 6,300 561,094
Flextronics International Ltd.*............................................ 9,600 364,800
Intel Corp. ............................................................... 14,400 648,000
JDS Uniphase Corp.*........................................................ 1,700 138,337
KLA-Tencor Corp.*.......................................................... 7,500 253,594
Microsoft Corp.*........................................................... 8,600 592,325
Nortel Networks Corp. ..................................................... 8,700 395,850
Oracle Systems Corp.*...................................................... 10,600 349,800
Sun Microsystems Inc.*..................................................... 4,700 521,113
Texas Instruments Inc. .................................................... 6,300 309,094
-----------
5,438,493
-----------
DEREGULATED INDUSTRIEs -- 7.28%
SBC Communications Inc. ................................................... 14,600 842,237
Verizon Communications .................................................... 5,200 300,625
Worldcom Inc.*............................................................. 12,700 301,625
-----------
1,444,487
-----------
TOTAL COMMON STOCKS (Cost $19,375,726).................................. 19,849,466
-----------
SHORT-TERM INVESTMENT -- 1.01%
SEI Daily Income Trust Prime Obligation (Cost $200,429).................... 200,429 200,429
-----------
TOTAL INVESTMENTS (COST $19,576,155)+ -- 101.11%................................ $20,049,895

OTHER ASSETS AND LIABILITIES, NET -- (1.11%).................................... (219,147)
-----------
NET ASSETS-- 100.00%............................................................ $19,830,748
-----------
<FN>

* Non-income producing securities.

+ The cost for federal income tax purposes was $19,623,018. At October 31, 2000, net unrealized appreciation
was $426,877. This consisted of aggregate gross unrealized appreciation for all securities for which there
was an excess of market value over tax cost of $1,987,126, and aggregate gross unrealized depreciation
for all securities for which there was an excess of tax cost over market value of $1,560,249.
ADR -- American Depository Receipt
</FN>
</TABLE>

See notes to financial statements.

<PAGE>

[1838 LOGO OMITTED] INVESTMENT ADVISORS FUNDS
STATEMENTS OF ASSETS AND LIABILITIES OCTOBER 31, 2000
--------------------------------------------------------------------------------------------------------------------------------

INTERNATIONAL FIXED INCOME LARGE CAP
EQUITY FUND FUND EQUITY FUND
----------------------------------------------------
ASSETS:
<S> <C> <C> <C>
Investments, at value (identified cost $91,765,723, $149,873,366
and $19,576,155, respectively) (Note 2)........................ $103,852,186 $150,345,925 $20,049,895
Receivables:
Dividends, interest and tax reclaims........................... 117,262 1,954,078 10,020
Investment securities sold..................................... -- 3,053,802 231,113
Other assets...................................................... 10,201 14,376 1,699
----------------------------------------------------
Total assets ............................................... 103,979,649 155,368,181 20,292,727
----------------------------------------------------

LIABILITIES:
Due to advisor (Note 4)........................................ 64,296 42,308 1,062
Due to affliates (Note 4)...................................... 13,228 15,553 6,457
Payable for investment securities purchased.................... 2,160,681 2,939,329 435,727
Payable for Fund shares redeemed............................... -- -- 419
Other accrued expenses......................................... 55,849 52,144 18,314
----------------------------------------------------
Total liabilities........................................... 2,294,054 3,049,334 461,979
----------------------------------------------------
NET ASSETS........................................................ $101,685,595 $152,318,847 $19,830,748
====================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest..................................... $ 6,967 $ 15,622 $ 1,788
Additional capital paid-in........................................ 78,951,291 155,100,045 19,719,628
Accumulated net investment income................................. -- 10,125 24,027
Accumulated net realized (loss) on investments.................... 10,647,756 (3,279,504) (388,435)
Net unrealized appreciation (depreciation) on:
Investments.................................................... 12,086,463 472,559 473,740
Translation of assets and liabilities in foreign currencies.... (6,882) -- --
----------------------------------------------------
NET ASSETS........................................................ $101,685,595 $152,318,847 $19,830,748
====================================================
Shares of beneficial interest outstanding 6,967,380 15,621,871 1,788,113
----------------------------------------------------

NET ASSETS VALUE, offering and redemption price
per share (Net assets/Outstanding shares of
beneficial interest)........................................... $ 14.59 $ 9.75 $ 11.09
====================================================
</TABLE>

See notes to financial statements.

<PAGE>

[1838 LOGO OMITTED] INVESTMENT ADVISORS FUNDS
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED OCTOBER 31, 2000
--------------------------------------------------------------------------------------------------------------------------------

INTERNATIONAL FIXED INCOME LARGE CAP
EQUITY FUND FUND EQUITY FUND
-------------------------------------------------------------
INVESTMENT INCOME:
<S> <C> <C> <C>
Dividends...................................................... $ 1,213,853 $ -- $ 90,901
Interest....................................................... 124,550 9,178,462 26,118
Foreign taxes withheld ........................................ (149,173) -- (205)
-------------------------------------------------------------
Total Investment Income............................ 1,189,230 9,178,462 116,814
-------------------------------------------------------------
EXPENSES:
Invesment advisory fees (Note 4)............................... 785,842 640,233 77,239
Administration fee (Note 4).................................... 62,867 76,828 15,000
Accounting fee (Note 4)........................................ 76,461 63,433 40,000
Custodian fees ................................................ 53,890 21,984 7,554
Transfer agency fees (Note 4).................................. 20,000 20,000 20,000
Trustees' fees (Note 4)........................................ 16,759 19,862 1,988
Audit fees..................................................... 22,486 30,516 11,816
Legal fees..................................................... 36,240 23,107 9,083
Registration fees.............................................. 17,044 26,390 16,190
Reports to shareholders........................................ 10,836 13,694 1,223
Amortization of organizational costs (Note 2).................. 19,626 -- --
Other.......................................................... 26,640 22,108 4,405
-------------------------------------------------------------
Total expenses............................................ 1,148,691 958,155 204,498
Advisory fee waived (Note 4).............................. -- (187,213) (77,239)
Reimbursement from advisor (Note 4)....................... -- -- (37,810)
-------------------------------------------------------------
Total expenses, net.................................... 1,148,691 770,942 89,449
-------------------------------------------------------------
Net investment income............................... 40,539 8,407,520 27,365
-------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY:
Net realized gain (loss) from:
Investment transactions.................................. 11,058,534 (1,615,101) (388,435)
Foreign currency transactions............................ (455,576) -- --
-------------------------------------------------------------
Total net realized gain (loss)......................... 10,602,958 (1,615,101) (388,435)
-------------------------------------------------------------
Change in unrealized appreciation (depreciation) of:
Investments.............................................. (7,116,051) 1,963,643 229,889
Translation of assets and liabilities in foreign
currencies ............................................ (8,738) -- --
-------------------------------------------------------------
Total change in unrealized appreciation (depreciation). (7,124,789) 1,963,643 229,889
-------------------------------------------------------------
Net gain (loss) on investments and foreign currency 3,478,169 348,542 (158,546)
-------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS... $ 3,518,708 $ 8,756,062 $ (131,181)
=============================================================
</TABLE>

See notes to financial statements.

<PAGE>

[1838 LOGO OMITTED] INVESTMENT ADVISORS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
-----------------------------------------------------------------------------------------------------------------------------------

INTERNATIONAL FIXED INCOME LARGE CAP
EQUITY FUND FUND EQUITY FUND+
-------------------------------------------------------------
FOR THE YEAR ENDED OCTOBER 31, 2000
INCREASE (DECREASE) IN NET ASSETS:
Operations:
<S> <C> <C> <C>
Net investment income ............................................ $ 40,539 $ 8,407,520 $ 27,365
Net realized gain (loss) from investment and
foreign currency transactions.................................. 10,602,958 (1,615,101) (388,435)
Change in unrealized appreciation (depreciation) of
investments and foreign currency............................... (7,124,789) 1,963,643 229,889
-------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations...... 3,518,708 8,756,062 (131,181)
-------------------------------------------------------------
Distributions to shareholders:
Net investment income............................................. (7,576) (8,617,599) (6,623)
Net realized gains................................................ (4,661,343) -- (15,233)
-------------------------------------------------------------
Total distributions............................................. (4,668,919) (8,617,599) (21,856)
-------------------------------------------------------------
Increase in net assets from Fund share transactions (Note 5)......... 16,288,780 57,959,658 15,060,490
-------------------------------------------------------------
Increase in net assets............................................... 15,138,569 58,098,121 14,907,453
NET ASSETS:
Beginning of year................................................. 86,547,026 94,220,726 4,923,295
-------------------------------------------------------------
End of year (including undistributed net investment income of $0,
$10,125 and $24,027, respectively)............................. $101,685,595 $152,318,847 $19,830,748
=============================================================
FOR THE PERIOD ENDED OCTOBER 31, 1999
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income............................................. $ 169,958 $ 4,502,938 $ 3,799
Net realized gain (loss) from investment and
foreign currency transactions..................................... 4,496,142 (1,593,120) 14,719
Change in unrealized appreciation (depreciation) of
investments and foreign currency............................... 13,866,854 (2,308,516) 243,851
-------------------------------------------------------------
Net increase in net assets resulting from operations................. 18,532,954 601,302 262,369
-------------------------------------------------------------
Distributions to shareholders:
Net investment income............................................. -- (4,282,734) --

Net realized gains................................................ (4,289,722) -- --
-------------------------------------------------------------
Total Distributions............................................. (4,289,722) (4,282,734) --
-------------------------------------------------------------
Increase in net assets from Fund share transactions (Note 5)......... 14,428,889 26,178,864 4,660,926
-------------------------------------------------------------
Increase in net assets............................................... 28,672,121 22,497,432 4,923,295
NET ASSETS:
Beginning of period............................................... 57,874,905 71,723,294 --
-------------------------------------------------------------
End of period (including undistributed net investment income of
$7,585, $220,204 and $3,799, respectively)..................... $ 86,547,026 $ 94,220,726 $ 4,923,295
=============================================================
<FN>
+ The Large Cap Equity Fund commenced operations on September 29, 1999.
</FN>
</TABLE>

See notes to financial statements.

<PAGE>

[1838 LOGO OMITTED] INVESTMENT ADVISORS FUNDS
FINANCIAL HIGHLIGHTS
-----------------------------------------------------------------------------------------------------------------------------

The following table includes selected data for a share outstanding throughout each fiscal year and other performance
information derived from the financial statements. It should be read in conjuction with the financial statements and
notes thereto.

INTERNATIONAL EQUITY FUND
FOR THE FISCAL YEAR OR PERIOD ENDED OCTOBER 31,
---------------------------------------------------------------
2000 1999 1998 1997 1996
---------------------------------------------------------------
NET ASSET VALUE - BEGINNING OF YEAR.................... $14.57 $12.08 $11.99 $10.44 $9.61
---------------------------------------------------------------
INVESTMENT OPERATIONS:
<S> <C> <C> <C> <C> <C>
Net investment income ............................. 0.01 0.03 0.01 0.02 0.07
Net realized and unrealized gain (loss) on
investments and foreign currency transactions..... 0.78 3.34 0.75 1.57 0.80
---------------------------------------------------------------
Total from investment operations.................. 0.79 3.37 0.76 1.59 0.87
---------------------------------------------------------------
DISTRIBUTIONS:
From net investment income.......................... -- -- -- (0.04) (0.04)
From net realized gain on investments............... (0.77) (0.88) (0.67) -- --
---------------------------------------------------------------
Total distributions............................... (0.77) (0.88) (0.67) (0.04) (0.04)
---------------------------------------------------------------
NET ASSET VALUE - END OF YEAR.......................... $14.59 $14.57 $12.08 $11.99 $10.44
===============================================================
TOTAL RETURN........................................... 5.06% 29.10% 6.90% 15.23% 9.11%
RATIOS (TO AVERAGE NET
ASSETS)/SUPPLEMENTAL DATA:
Expenses (net of fee waivers)................... 1.10% 1.09% 1.13% 1.25% 1.25%
Expenses (excluding fee waivers)................ N/A N/A N/A 1.44% 1.80%
Net investment income .......................... 0.04% 0.23% 0.10% 0.28% 0.70%
Portfolio turnover rate................................ 51.99% 48.71% 166.77% 92.33% 59.11%
Net assets, end of year (in 000's)..................... $101,686 $86,547 $57,875 $51,046 $41,209

</TABLE>

See notes to financial statements.

<PAGE>

[1838 LOGO OMITTED] INVESTMENT ADVISORS FUNDS
FINANCIAL HIGHLIGHTS -- CONTINUED
-------------------------------------------------------------------------------------------------------------------------

The following table includes selected data for a share outstanding throughout each fiscal year or period and other
performance information derived from the financial statements. It should be read in conjuction with the
financial statements and notes thereto.

FIXED INCOME FUND
FOR THE FISCAL YEAR OR PERIOD ENDED OCTOBER 31,
--------------------------------------------------------
2000 1999 1998 1997+
--------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE - BEGINNING OF YEAR....................... $9.81 $10.24 $10.27 $10.00
--------------------------------------------------------
INVESTMENT OPERATIONS:
Net investment income.................................. 0.63 0.53 0.54 0.06
Net realized and unrealized gain (loss) on investments (0.04) (0.45) 0.08 0.21
--------------------------------------------------------
Total from investment operations.................... 0.59 0.08 0.62 0.27
--------------------------------------------------------
DISTRIBUTIONS:
From net investment income............................. (0.65) (0.51) (0.59) --
Return of capital...................................... -- -- (0.04) --
From net realized gain on investments ................. -- -- (0.02) --
--------------------------------------------------------
Total distributions................................. (0.65) (0.51) (0.65) --
--------------------------------------------------------
NET ASSET VALUE - END OF YEAR............................. $9.75 $9.81 $10.24 $10.27
========================================================
TOTAL RETURN.............................................. 6.33% 0.79% 6.26% 2.70%**
RATIOS (TO AVERAGE NET ASSETS)/SUPPLEMENTAL DATA:
Expenses (net of fee waivers)1......................... 0.60% 0.61% 0.75% 0.75%*
Expenses (excluding fee waivers)....................... 0.75% 0.73% 0.88% 2.12%*
Net investment income ................................. 6.57% 5.35% 5.60% 5.83%*
Portfolio turnover rate................................... 361.63% 834.18% 92.65% 39.12%*
Net assets, end of period (in 000's)...................... $152,319 $94,221 $71,723 $32,537

<FN>
+ The Fixed Income Fund commenced operations on September 2, 1997.

* Annualized.

** Total return not annualized.
1 Effective March 1, 1999, 1838 Investment Advisors voluntarily agreed to waive its fees and/or reimburse the Fund so
the total operating expenses do not exceed 0.60% of average daily net assets.
</FN>
</TABLE>

See notes to financial statements.

<PAGE>

[1838 LOGO OMITTED] INVESTMENT ADVISORS FUNDS
FINANCIAL HIGHLIGHTS -- CONTINUED
--------------------------------------------------------------------------------------------------------------------

The following table includes selected data for a share outstanding throughout each fiscal year or period and
other performance information derived from the financial statements. It should be read in conjuction with
the financial statements and notes thereto.

LARGE CAP EQUITY FUND

FOR THE FISCAL YEAR OR PERIOD ENDED OCTOBER 31,
-------------------------------------------------
2000 1999+
-------------------------------------------------
NET ASSET VALUE - BEGINNING OF YEAR............................. $10.61 $10.00
-------------------------------------------------
INVESTMENT OPERATIONS:
<S> <C> <C>
Net investment income........................................ 0.02 0.01
Net realized and unrealized gain on investments ............. 0.49 0.60
-------------------------------------------------
Total from investment operations.......................... 0.51 0.61
-------------------------------------------------
DISTRIBUTIONS:
From net investment income................................... (0.01) --
From net realized gain on investments........................ (0.02) --
-------------------------------------------------
Total distributions....................................... (0.03) --
-------------------------------------------------
NET ASSET VALUE - END OF YEAR................................... $11.09 $10.61
=================================================
TOTAL RETURN.................................................... 4.83% 6.10%**
RATIOS (TO AVERAGE NET ASSETS)/SUPPLEMENTAL DATA:
Expenses (net of fee waivers)................................ 0.75% 0.75%*
Expenses (excluding fee waivers and reimbursements).......... 1.73% 4.98%*
Net investment income ....................................... 0.23% 1.55%*
Portfolio turnover rate......................................... 54.21% 5.58%
Net assets, end of period (in 000's)............................ $19,831 $4,923

<FN>

+ The Large Cap Equity Fund commenced operations on September 29, 1999.

* Annualized.

** Total return not annualized.
</FN>
</TABLE>

See notes to financial statements.

<PAGE>

[1838 LOGO OMITTED] INVESTMENT ADVISORS FUNDS
NOTES TO THE FINANCIAL STATEMENTS OCTOBER 31, 2000
--------------------------------------------------------------------------------

NOTE 1 -- DESCRIPTION OF THE FUNDS

The 1838 Investment Advisors Funds (the "Trust") was organized as a Delaware
series business trust on December 9, 1994, and is an open-end, management
investment company registered under the Investment Company Act of 1940, as
amended (the "1940 Act"). The Trust's Agreement and Declaration of Trust permits
the Trustees to issue an unlimited number of shares of beneficial interest. The
Trust consists of three Funds: the 1838 International Equity Fund, the 1838
Fixed Income Fund and the 1838 Large Cap Equity Fund (each a "Fund" and
collectively, the "Funds"). The investment objectives of each Fund are set forth
below.

The 1838 International Equity Fund (the "International Fund") commenced
operations on August 3, 1995. The Fund's investment objective is capital
appreciation, with a secondary objective of income. The Fund seeks to achieve
its objective by investing at least 65% of its total assets in a diversified
portfolio of equity securities of issuers located in countries other than the
United States.

The 1838 Fixed Income Fund (the "Fixed Income Fund") commenced operations on
September 2, 1997. The Fund's investment objective is maximum current income,
with a secondary objective of growth. The Fund seeks to achieve its objective by
investing, under normal circumstances, at least 65% of its assets in a
diversified portfolio of fixed income securities.

The 1838 Large Cap Equity Fund (the "Large Cap Fund") commenced operations on
September 29, 1999. The Fund's investment objective is long-term total return.
The Fund seeks to achieve its objective by investing at least 90% of its total
assets in the common stock of U.S. companies with market capitalizations greater
than $5 billion.

NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES

SECURITY VALUATION. Each Fund's securities, except investments with remaining
maturities of 60 days or less, are valued at the last quoted sales price on the
security's principal exchange on that day. If there are no sales of the relevant
security on such day, the security will be valued at the mean between the
closing bid and asked price on that day, if any. Debt securities having a
maturity of 60 days or less are valued at amortized cost. Securities for which
market quotations are not readily available and all other assets will be valued
at their respective fair value as determined in good faith by, or under
procedures established by, the Board of Trustees. As of October 31, 2000, there
were no securities valued by, or under procedures established by, the Board of
Trustees.

FEDERAL INCOME TAXES. Each Fund is treated as a separate entity and intends to
remain qualified as a "regulated investment company" under Subchapter M of the
Internal Revenue Code of 1986 and to distribute all of its taxable income to its
shareholders. Therefore, no federal income or excise tax provision is required.

DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS. Distributions of net investment income
and net realized gains are determined in accordance with income tax regulations
that may differ from generally accepted accounting principles. The difference is
primarily due to the differing treatments for foreign currency transactions for
the International Fund. The Fixed Income Fund distributes net investment income
monthly. All other distributions by each Fund will be made annually in December.
Additional distributions may be made by each Fund to the extent necessary.

DEFERRED ORGANIZATIONAL COSTS. Costs incurred by the International Fund in
connection with the initial registration and public offering of shares have been
deferred and were amortized on a straight-line basis over a five-year period
beginning on the date that the Fund commenced operations.

<PAGE>

[1838 LOGO OMITTED] INVESTMENT ADVISORS FUNDS
NOTES TO THE FINANCIAL STATEMENTS -- CONTINUED OCTOBER 31, 2000
--------------------------------------------------------------------------------

NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)

FOREIGN CURRENCY TRANSLATIONS. The books and records of the International Fund
are maintained in U.S. dollars. Foreign currency amounts are translated into
U.S. dollars on the following basis:

(i) market value of investment securities, assets and liabilities at
the daily rates of exchange, and

(ii) purchases and sales of investment securities, dividend and
interest income and certain expenses at the rates of exchange
prevailing on the
respective dates of such transactions.

The International Fund does not isolate that portion of the results of
operations resulting from changes in foreign exchange rates on investments from
the fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss from
investments.

Reported net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, currency gains
or losses realized between the trade and settlement dates on securities
transactions, the difference between the amounts of dividends, interest, and
foreign withholding taxes recorded on the International Fund's books, and the
U.S. dollar equivalent of the amounts actually received or paid. Net unrealized
foreign exchange gains and losses arise from changes in the value of assets and
liabilities, other than investments in securities, resulting from changes in
exchange rates.

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS. In connection with portfolio
purchases and sales of securities denominated in a foreign currency, the
International Fund may enter into forward foreign currency exchange contracts
("FFCEC"). Additionally, the International Fund may enter into these contracts
to hedge certain foreign currency assets. Foreign currency exchange contracts
are recorded at fair value. Certain risks may arise upon entering into these
contracts from the potential inability of counterparties to meet the terms of
their contracts. Realized gains or losses arising from such transactions are
included in net realized gain (loss) from foreign currency transactions. There
are no FFCEC outstanding at October 31, 2000.

TRANSFERS IN-KIND. Shareholders may periodically contribute marketable
securities to a respective Fund, upon approval of the Fund's management, in
exchange for capital shares of the respective Fund. The exchange is conducted on
a taxable basis, whereby any unrealized appreciation or depreciation on the
marketable securities on the date of transfer is recognized by the shareholder
and the Fund's basis in the securities is the market value as of the date of
transfer. The number of shares issued to the shareholder is calculated by
dividing the market value of the marketable securities, determined using the
last quoted sales price on the security's principal exchange on that day, by the
current net asset value per share of the respective Fund on the date of
transfer.

USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS. The preparation of
financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that may affect the
reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates.

OTHER. Investment security transactions are accounted for on a trade date basis.
The specific identification method is utilized for determining realized gain or
loss on investments for both financial and federal income tax reporting
purposes. Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Interest income is recorded on an accrual basis.

<PAGE>

[1838 LOGO OMITTED] INVESTMENT ADVISORS FUNDS
NOTES TO THE FINANCIAL STATEMENTS -- CONTINUED OCTOBER 31, 2000
--------------------------------------------------------------------------------

Note 3 -- Purchases and Sales of Investment Securities

During the fiscal year ended October 31, 2000, purchases and sales of investment
securities, other than short-term investments, were as follows:

INTERNATIONAL FIXED INCOME LARGE CAP
FUND FUND FUND
------------ ------------ ------------
Purchases................. $60,046,239 $502,577,029 $21,256,917
Sales..................... 52,788,651 445,700,089 6,046,156

During the fiscal year ended October 31, 2000, purchases and sales of U.S.
Government securities, other than short-term investments, were as follows:

INTERNATIONAL FIXED INCOME LARGE CAP
FUND FUND FUND
------------ ------------ ------------
Purchases................. -- $192,214,309 --
Sales..................... -- 190,770,745 --

NOTE 4 -- ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

The Trust, on behalf of each Fund, employs 1838 Investment Advisors, Inc. (the
"Investment Advisor"), a direct, wholly-owned subsidiary of MBIA, Inc., and
registered investment adviser under the 1940 Act, to furnish investment advisory
services to the Funds pursuant to an Investment Advisory Agreement with the
Trust. The Investment Advisor supervises the investment of the assets of the
Fund in accordance with each Fund's investment objective, policies and
restrictions.

The Trust pays the Investment Advisor a monthly fee at the following annual
rates of each Fund's average daily net assets: 0.75% for the International Fund,
0.50% for the Fixed Income Fund and 0.65% for the Large Cap Fund. The Investment
Advisor has voluntarily agreed to waive its advisory fee and/or reimburse each
Fund monthly to the extent that the total operating expenses (excluding taxes,
extraordinary expenses, brokerage commissions and interest) will exceed the
following annual rates of each Fund's average daily net assets: 1.25% for the
International Fund, 0.60% for the Fixed Income Fund and 0.75% for Large Cap
Fund. This undertaking may be amended or rescinded at any time in the future.

The following table summarizes the advisory fees incurred by the Funds for the
fiscal year ended October 31, 2000:

<TABLE>
<CAPTION>
GROSS ADVISORY FEE NET ADVISOR
ADVISORY FEE WAIVER ADVISORY FEE REIMBURSEMENT
----------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
International Fund.............. $785,842 $ -0- $785,842 $ -0-
Fixed Income Fund............... 640,233 187,213 453,020 -0-
Large Cap Fund.................. 77,239 77,239 -0- 37,810
</TABLE>

<PAGE>

[1838 LOGO OMITTED] INVESTMENT ADVISORS FUNDS
NOTES TO THE FINANCIAL STATEMENTS -- CONTINUED OCTOBER 31, 2000
--------------------------------------------------------------------------------

NOTE 4 -- ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES (CONTINUED)

1838 Investment Advisors, Inc. ("1838") also serves as Administrator to the
Trust pursuant to an Administration Agreement with the Trust on behalf of each
Fund. As Administrator, 1838 is responsible for services such as financial
reporting, compliance monitoring and corporate management. The Trust pays 1838 a
monthly asset-based fee at the annual rate of 0.06% of each Fund's average daily
net assets, with a minimum annual fee per Fund of $15,000. For the fiscal year
ended October 31, 2000, 1838's administration fees amounted to $62,867, $76,828
and $15,000, for the International Fund, the Fixed Income Fund and the Large Cap
Fund, respectively.

MBIA Municipal Investors Services Corporation ("MBIA MISC"), a direct,
wholly-owned subsidiary of MBIA, Inc., serves as Accounting Agent to the Trust.
As Accounting Agent, MBIA MISC determines each Fund's net asset value per share
and provides accounting services to the Funds pursuant to an Accounting Services
Agreement with the Trust. The Trust pays MBIA MISC a monthly asset-based fee at
the annual rate of $40,000, plus 0.03% of each Fund's average daily net assets
in excess of $50 million for the Fixed Income Fund and the Large Cap Fund. The
International Fund pays at the annual rate of $60,000, plus 0.03% of average
daily net assets in excess of $50 million. For the fiscal year ended October 31,
2000, MBIA MISC's accounting fees amounted to $76,461, $63,433 and $40,000, for
the International Fund, the Fixed Income Fund and the Large Cap Fund,
respectively.

MBIA MISC also serves as the Fund's transfer agent pursuant to a Transfer Agency
Agreement with the Trust. For these services, MBIA MISC receives an annual fee
per Fund of $20,000, and is reimbursed for out--of--pocket expenses. For the
fiscal year ended October 31, 2000, MBIA MISC's transfer agent fees amounted to
$20,000 for each Fund.

MBIA Capital Management Corporation (the "distributor"), a direct, wholly-owned
subsidiary of MBIA, Inc., entered into a Distribution Agreement with the Trust
to assist in securing purchasers for shares of each Fund. The distributor also
directly or through its affiliates, provides investor support services. The
distributor receives no compensation for distributing the Funds' shares, except
for reimbursement of its out-of-pocket expenses.

The Trustees of the Trust who are "interested persons" of the Trust, the
Investment Advisor or its affiliates and all personnel of the Trust or the
Investment Advisor performing services related to research, statistical and
investment activities are paid by the Investment Advisor or its affiliates.

<PAGE>

[1838 LOGO OMITTED] INVESTMENT ADVISORS FUNDS
NOTES TO THE FINANCIAL STATEMENTS -- CONTINUED OCTOBER 31, 2000
--------------------------------------------------------------------------------

NOTE 5 -- FUND SHARE TRANSACTIONS

At October 31, 2000, there were an unlimited number of shares of beneficial
interest with a $0.001 par value, authorized. The following table summarizes the
activity in shares of each Fund:

INTERNATIONAL FUND
<TABLE>
<CAPTION>

FOR THE FISCAL YEAR FOR THE FISCAL YEAR
ENDED OCTOBER 31, 2000 ENDED OCTOBER 31, 1999
------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ----------- ----------- ----------
<S> <C> <C> <C> <C>
Shares sold........................................... 1,773,654 $28,317,422 1,088,189 $13,964,098
Shares issued to shareholders in reinvestment
of distributions................................... 277,928 4,352,350 315,651 3,926,698
Shares redeemed....................................... (1,022,731) (16,380,992) (254,808) (3,461,907)
--------- ----------- --------- -----------
Net increase.......................................... 1,028,851 $16,288,780 1,149,032 $14,428,889
=========== ===========

Shares outstanding:
Beginning of year...................................... 5,938,529 4,789,497
--------- ---------
End of year................................... 6,967,380 5,938,529
========= =========

</TABLE>

FIXED INCOME FUND
<TABLE>
<CAPTION>

FOR THE FISCAL YEAR FOR THE FISCAL YEAR
ENDED OCTOBER 31, 2000 ENDED OCTOBER 31, 1999
------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ----------- ----------- ----------
<S> <C> <C> <C> <C>
Shares sold........................................... 2,631,995 $25,357,954 2,618,322 $26,346,425
Shares issued in exchange for securities
transferred in-kind (Note 2)....................... 3,795,916 36,617,224 -- --
Shares issued to shareholders in reinvestment
of distributions................................... 803,370 7,723,048 387,326 3,867,673
Shares redeemed....................................... (1,213,992) (11,738,568) (405,513) (4,035,234)
---------- ----------- --------- -----------
Net increase.......................................... 6,017,289 $57,959,658 2,600,135 $26,178,864
=========== ===========

Shares outstanding:
Beginning of year.............................. 9,604,582 7,004,447
---------- ---------
End of year................................... 15,621,871 9,604,582
========== =========
</TABLE>

<PAGE>

[1838 LOGO OMITTED] INVESTMENT ADVISORS FUNDS
NOTES TO THE FINANCIAL STATEMENTS -- CONTINUED OCTOBER 31, 2000
--------------------------------------------------------------------------------

NOTE 5 -- FUND SHARE TRANSACTIONS -- (CONTINUED)

LARGE CAP FUND
<TABLE>
<CAPTION>

FOR THE FISCAL YEAR FOR THE PERIOD
ENDED OCTOBER 31, 2000 ENDED OCTOBER 31, 1999
------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ----------- ----------- ----------
<S> <C> <C> <C> <C>
Shares sold........................................... 1,427,070 $16,237,833 471,281 $4,733,341
Shares issued to shareholders in reinvestment
of distributions................................... 1,965 21,856 -- --
Shares redeemed....................................... (104,866) (1,199,199) (7,337) (72,415)
--------- ----------- ------- ----------
Net increase.......................................... 1,324,169 $15,060,490 463,944 $4,660,926
=========== ==========

Shares outstanding:
Beginning of year.............................. 463,944 0
--------- -------
End of year................................... 1,788,113 463,944
========= =======
</TABLE>

NOTE 6 -- CONCENTRATION OF RISKS

The International Fund invests in securities of foreign issuers in various
countries. These investments may involve certain considerations and risks not
typically associated with investments in the U.S., as a result of, among other
factors, the possibility of future political and economical developments and the
level of government supervision and regulation of securities markets in the
various countries.

NOTE 7 -- CAPITAL LOSS CARRYOVERS

The following table shows the capital loss carryovers available to offset
possible future capital gains for the following Funds:

FUND AMOUNT EXPIRATION DATE
---- ----------- ---------------
Fixed Income Fund............ $ 71,283 10/31/2006
1,540,705 10/31/2007
1,557,707 10/31/2008

Large Cap Fund............... 341,572 10/31/2008

<PAGE>

[1838 LOGO OMITTED] INVESTMENT ADVISORS FUNDS
REPORT OF INDEPENDENT ACCOUNTANTS OCTOBER 31, 2000
--------------------------------------------------------------------------------

TO THE SHAREHOLDERS AND BOARD OF TRUSTEES
OF 1838 INVESTMENT ADVISORS FUNDS

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 International Equity Fund, Fixed
Income Fund and Large Cap Equity Fund (constituting 1838 Investment Advisors
Funds, hereafter referred to as the "Fund") at October 31, 2000, and the results
of each of their operations, the changes in each of their net assets and the
financial highlights for each of the periods indicated, in conformity with
accounting principles generally accepted in the United States of America. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States of America,
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 audits, which included
confirmation of securities at October 31, 2000 by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion.

PRICEWATERHOUSECOOPERS LLP
1177 Avenue of the Americas
New York, New York 10036
December 8, 2000

<PAGE>

[1838 LOGO OMITTED] INVESTMENT ADVISORS FUNDSS
--------------------------------------------------------------------------------
SHAREHOLDER INFORMATION (UNAUDITED)

TAX INFORMATION

The 1838 International Equity Fund paid distributions of $0.31588 per share from
net long-term capital gains during the fiscal year ended October 31, 2000.
Pursuant to section 852 of the Internal Revenue Code, the 1838 International
Equity Fund designated $1,914,478 as capital gain distributions for the fiscal
year ended October 31, 2000.

<PAGE>

THIS PAGE IS LEFT INTENTIONALLY BLANK

<PAGE>

THIS PAGE IS LEFT INTENTIONALLY BLANK

<PAGE>

INVESTMENT ADVISER
AND ADMINISTRATOR
--------
1838 INVESTMENT ADVISORS, INC.
FIVE RADNOR CORPORATE CENTER
SUITE 320
100 MATSONFORD ROAD
RADNOR, PA 19087
DISTRIBUTOR
--------
MBIA CAPITAL MANAGEMENT CORPORATION
113 KING STREET
ARMONK, NY 10504

ACCOUNTING AND
TRANSFER AGENT
--------
MBIA MUNICIPAL INVESTORS SERVICE CORPORATION
113 KING STREET
ARMONK, NY 10504

CUSTODIAN
--------
FIRST UNION NATIONAL BANK
123 S. BROAD STREET
PHILADELPHIA, PA 19101

LEGAL COUNSEL
--------
PEPPER HAMILTON LLP
3000 TWO LOGAN SQUARE
EIGHTEENTH & ARCH STREETS
PHILADELPHIA, PA 19103

AUDITORS
--------
PRICEWATERHOUSECOOPERS LLP
1177 AVENUE OF THE AMERICAS
NEW YORK, NY 10036

AR 10/00