<PAGE>
- --------------------------------------------------------------------------------
THE HIRTLE CALLAGHAN TRUST ANNUAL REPORT
- --------------------------------------------------------------------------------
June 30, 1996
We are pleased to present the June 30, 1996 annual report for The Hirtle
Callaghan Trust.
The Hirtle Callaghan Trust, a diversified open-end management investment
company, was organized by Hirtle, Callaghan & Co., Inc. to enhance Hirtle
Callaghan's ability to acquire the services of independent, specialist money
management organizations for the clients Hirtle Callaghan serves. The Trust
currently consists of five separate investment portfolios. Day-to-day portfolio
management services are provided to each of the Trust's five Portfolios by one
or more independent money management organizations (Investment Managers),
selected by, and under the general supervision of, the Trust's Board of
Trustees.
Shares of the Trust are available exclusively to investors who are clients of
Hirtle Callaghan or clients of financial intermediaries, such as investment
advisers, acting in a fiduciary capacity with investment discretion, that have
established relationships with Hirtle Callaghan.
The Trust currently consists of five separate Portfolios, listed below:
- --------------------------------------------------------------------------------
THE PORTFOLIOS
THE VALUE EQUITY PORTFOLIO, seeks total return by investing in a
--------------------------
diversified portfolio of equity securities of large companies with
relatively low price-earnings ratios and high dividend yields.
THE GROWTH EQUITY PORTFOLIO, seeks capital appreciation by
---------------------------
investing in a diversified portfolio of equity securities of large
and mid-capitalization companies with superior prospects for
earnings growth.
THE SMALL CAPITALIZATION EQUITY PORTFOLIO, seeks capital
-----------------------------------------
appreciation by investing in a diversified portfolio of equity
securities of small-capitalization companies.
THE INTERNATIONAL EQUITY PORTFOLIO, seeks total return by investing
----------------------------------
in a diversified portfolio of equity securities of companies based
in developed countries other than the United States of America.
THE LIMITED DURATION MUNICIPAL BOND PORTFOLIO, seeks current income
---------------------------------------------
exempt from Federal income tax by investing in a diversified
portfolio of relatively short duration municipal notes.
- --------------------------------------------------------------------------------
<PAGE>
The following discussion summarizes those factors, including relevant market
conditions and the investment strategies and techniques of each of the
Investment Managers that materially affected the performance of the respective
Portfolios during the Trust's first year of operation. Because the Portfolios
were launched sequentially beginning August 8, 1995 and ending October 10,
1995, these remarks will cover slightly different time periods.
ECONOMIC/CAPITAL MARKETS COMMENTARY
The second half of 1995 and the first half of 1996 presented dramatically
different economic and financial market environments. Consequently, the
Trust's first fiscal year encountered highly variable cross currents.
Throughout this period, U.S. equities performed very strongly.
In 1995, the strength of the U.S. equity market was driven by falling interest
rates as confidence developed about a "soft landing" while earnings reports
continued to be strong. Corporate merger and acquisition activity bolstered
valuations, especially in the large capitalization area. For 1995 as a whole,
approximately 50% of the S+P 500's 38% total return was delivered by only 50
companies, most of which were multinational in nature. As a result of this
very narrow equity market strength, active, diversified managers faced an
uphill battle against indexes. For example, a leading investment management
consulting concern estimates that, in aggregate, large capitalization active
equity managers underperformed the S+P 500 index by nearly 3% for the year as
a whole.
In the first half of 1996, investor psychology switched gears from worrying
about economic weakness to being concerned about robust growth and rising
inflation and interest rates. Consequently, bond markets were weak while
equities were strong, bolstered by rising earnings expectations. Equity market
strength was broad, with growth and especially small capitalization growth
companies leading the performance tallies. This broadening of equity market
performance has meant that active, diversified equity managers, especially
small capitalization managers, may have begun to reverse a two year struggle
against passive indexes, which tend to be dominated by a narrow number of very
large companies. As we enter the second half of calendar 1996, equity market
investors will be concentrating on actual rather than projected earnings.
Disappointments will be severely punished. Actively managed, diversified
portfolios should continue to differentiate themselves as investors become
more discerning and quality oriented.
1
<PAGE>
THE VALUE EQUITY PORTFOLIO
The investment objective of this Portfolio is to provide total return
consisting of capital appreciation and current income. In accordance with its
investment policies, this Portfolio is oriented toward large capitalization,
relatively lower price-earnings ratios and higher dividend income than the
average range for stocks included in the Standard & Poor's 500 Stock Index. As
of June 30, 1996, the Portfolio's managers were Cowen Asset Management (Cowen)
and Institutional Capital Corporation (ICAP).
As can be seen from the table below*, both managers have constructed
portfolios whose characteristics are consistent with the Trust's policies.
<TABLE>
<CAPTION>
P/E RATIO YIELD AVERAGE MARKET CAP
--------- ----- ------------------
<S> <C> <C> <C>
S+P 500 Index........................... 22.4x 2.2% $34.9 billion
Total Portfolio......................... 19.8x 3.3% $20.1 billion
Cowen................................... 20.1x 4.9% $13.1 billion
Institutional Capital................... 19.6x 2.3% $25.6 billion
</TABLE>
* Source: Evaluation Associates as of June 30, 1996
For the fiscal year ended June 30, 1996, the Value Equity Portfolio (launched
August 25, 1995) had a total return of 17.28%, which compares to the S+P 500
Index return of 22.10%. There are two components of the shortfall of the
portfolio against the S+P 500 Index. The first is the active vs passive
environment of the past year, as discussed above. The second is related to
Cowen's management style, which has proven to be more interest rate sensitive
than desired. As market yields narrowed, the universe of high yielding
securities consistent with Cowen's discipline also shrank, and they became
more heavily weighted in utilities and other regulated industries. To help
combat this trend, Cowen's allocation was reduced during the last three months
of the period. Further, effective July 30, 1996, Hotchkis and Wiley, L.P., a
registered investment adviser, whose investment style emphasizes low P/E,
value oriented equities, replaced Cowen as an Investment Manager for The Value
Equity Portfolio. In contrast to Cowen, ICAP is a relative value manager, and
this investment discipline does not require specific dividend yield targets.
As active managers have begun to do better against indexes in 1996, ICAP too
has begun to outperform, with a 1996 year to date performance of 10.28% vs the
S+P 500 Index at 10.10%.
A $10,000 investment in the Value Equity Portfolio would have increased to
$11,728 (as of June 30, 1996). The graph below shows how this compares to our
benchmark. Total return for the life of the Fund was 17.28%.
[LINE GRAPH APPEARS HERE]
<TABLE>
HIRTLE CALLAGHAN VALUE EQUITY FUND RETURN CALCULATION FOR S&P
------ ----------- --- ---
<S> <C> <C> <C> (SPX) <C> <C> <C>
08/25/96 10,000 10,000
08/31/95 0.53 53.00 10,053 0.37 37.00 10,037
09/30/96 2.85 286.51 10,340 4.22 423.56 10,461
10/31/95 (0.77) (79.92) 10,260 (0.36) (37.35) 10,423
11/30/95 4.48 459.94 10,720 4.39 457.58 10,881
12/31/95 2.24 239.80 10.959 1.93 210.00 11,091
01/31/96 2.39 262.37 11,222 3.40 377.09 11,468
02/29/96 0.90 100.88 11,323 0.93 106.65 11,575
03/31/96 1.62 183.77 11,506 0.96 111.46 11,686
04/30/96 (0.18) (20.25) 11,486 1.47 172.11 11,858
05/31/96 1.59 182.63 11,669 TOT 2.57 305.33 12,163 TOT
06/30/96 0.51 58.93 11,728 17.28 0.38 46.22 12,210 22.10
</TABLE>
2
<PAGE>
THE GROWTH EQUITY PORTFOLIO
The investment objective of this Portfolio is to provide capital appreciation
with income as a secondary consideration. In accordance with its investment
policies, this Portfolio is oriented toward large capitalization, equity
securities with an emphasis on long-term earnings growth potential and
relatively higher price-earnings ratios and lower dividend yields than the
average range for stocks included in the Standard & Poor's 500 Stock Index. As
of June 30, 1996, the Portfolio's managers were Jennison Associates Capital
Corporation (Jennison) and Westfield Capital Management Company (Westfield).
As can be seen from the table below*, both managers have constructed
portfolios whose characteristics are consistent with the Trust's policies.
However, Jennison and Westfield have differing assignments within the growth
segment of the large capitalization arena. Jennison concentrates on the
largest, multinational companies in the large capitalization growth area,
while Westfield's assignment is more tilted toward the mid cap zone.
<TABLE>
<CAPTION>
P/E RATIO YIELD AVERAGE MARKET CAP
--------- ----- ------------------
<S> <C> <C> <C>
S+P 500 Index........................... 22.4x 2.2% $34.9 billion
Total Portfolio......................... 30.2x 0.9% $14.4 billion
Jennison................................ 30.8x 0.8% $20.4 billion
Westfield............................... 29.5x 0.9% $ 8.6 billion
</TABLE>
* Source: Evaluation Associates as of June 30, 1996
For the fiscal year ended June 30, 1996, the Growth Equity Portfolio (launched
August 8, 1995) had a total return of 11.69%, which compares to the S+P 500
Index return of 22.22%. There are two components of the shortfall of the
Portfolio against the S+P 500 Index. The first is the active vs passive
environment of the past year, as discussed above. The second is related to the
growth sector and Westfield's approach in particular. As the transition from
the 1995 market psychology (soft economic environment) to 1996 (demonstrated
earnings emphasis) occurred, equity markets increased in volatility and the
liquidity constraints of the mid capitalization market sector punished any
near term earnings shortfalls severely. Westfield's portfolio had a relatively
high commitment to technology and managed health care and related services.
Both of these sectors were weak, and Westfield's holdings were no exception,
despite their relatively higher quality characteristics. We feel that this is
a short term issue that will correct itself and are confident that their
approach is an appropriate compliment to Jennison. As a large capitalization
growth manager, Jennison's portion of the portfolio fared better than
Westfield's during the period. Jennison's holdings generally did not
experience the earnings shortfalls that the mid capitalization sector endured.
A $10,000 investment in the Growth Equity Portfolio would have increased to
$11,169 (as of June 30, 1996). The graph below shows how this compares to our
benchmark. Total return for the life of the Fund was 11.69%.
[LINE GRAPH APPEARS HERE]
<TABLE>
HIRTLE CALLAGHAN GROWTH EQUITY FUND RETURN CALCULATION FOR S&P
(SPX)
<S> <C> <C> <C> <C> <C> <C>
08/08/96 10,000 10,000
08/31/95 0.80 80.00 10,080 0.47 47.00 10,047
09/30/96 2.28 229.92 10,310 4.22 423.56 10,471
10/31/95 (3.20) (329.92) 9,980 (0.36) (37.39) 10,434
11/30/95 3.01 300.00 10,280 4.39 458.03 10,892
12/31/95 (0.39) (40.30) 1O,240 1.93 210.21 11,102
01/31/96 1.08 110.08 10,350 3.40 377.46 11,479
02/29/96 3.19 330.26 10,680 0.93 106.76 11,586
03/31/96 (0.06) (6.62) 10,673 0.96 111.57 11,698
04/30/96 3.38 360.76 11,034 1.47 172.28 11,870
05/31/96 2.18 240.43 11,275 TOT 2.57 305.64 12,176 TOT
06/30/96 (0.94) (106.09) 11,169 11.69 0.38 45.27 12,222 22.22
</TABLE>
3
<PAGE>
THE SMALL CAPITALIZATION EQUITY PORTFOLIO
The investment objective of this Portfolio is to provide long term capital
appreciation by investing primarily in equity securities of smaller companies.
In accordance with its investment policies, this portfolio consists primarily
of companies with a total market capitalization of less than $1 billion at the
time of purchase. As of June 30, 1996, the Portfolio's managers were Frontier
Capital Management Company (Frontier) and Clover Capital Management, Inc.
(Clover). Both a value (Clover) and a growth (Frontier) oriented manager are
employed simultaneously to capture the different segments of this diverse
universe.
As can be seen from the table below*, both managers have constructed
portfolios whose characteristics are consistent with the Trust's policies.
<TABLE>
<CAPTION>
P/E RATIO YIELD AVERAGE MARKET CAP
--------- ----- ------------------
<S> <C> <C> <C>
Russell 2000 Index...................... 25.5x 1.5% $ 0.5 billion
Total Portfolio......................... 27.5x 0.9% $ 1.1 billion
Clover Capital.......................... 26.2x 1.7% $ 1.6 billion
Frontier Capital........................ 28.6x 0.3% $ 0.6 billion
</TABLE>
* Source: Evaluation Associates as of June 30, 1996
For the fiscal year ended June 30, 1996, the Small Capitalization Equity
Portfolio (launched September 6, 1995) had a total return of 11.82%, which
compares to the Russell 2000 Index return of 13.83%. The environment for small
capitalization equities, especially the growth segment of this sector, has
been very robust, especially in the first six months of 1996. Frontier, the
growth manager of this Portfolio, has delivered very positive results, up
20.4% vs the Russell 2000 Index at 13.8%. This has also produced a very
positive year to date 1996 overall portfolio return of 12.1% vs 10.4% for the
Russell 2000 Index. Both Frontier's sector weighting and stock selection
skills have taken advantage of the earnings driven fundamentals of the market
during the period. The value manager (Clover) has experienced a several
quarter period of stock selection shortfalls. This reflects a not untypical
value manager's dilemma--namely, waiting for the marketplace to recognize the
intrinsic value imbedded in the holdings. June's technology market downdraft
penalized Clover's small capitalization electronic suppliers holdings, a
valuation discrepancy that management believes will be short lived.
A $10,000 investment in the Small Capitalization Equity Portfolio would have
increased to $11,182 (as of June 30, 1996). The graph below shows how this
compares to our benchmark. Total return for the life of the Fund was 11.82%.
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
HIRTLE CALLAGHAN SM CAP EQUITY FUND RETURN CALCULATION FOR RUSSELL 2000
-----------------------------------
(RUY)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/05/96 10,000 10,000
09/30/96 (0.30) (30.00) 9,970 0.80 80.00 10,080
10/31/95 (4.21) (419.94) 9,550 (4.46) (449.57) 9,630
11/30/95 2.93 279.91 9,830 4.31 414.88 10,045
12/31/95 1.54 151.09 9,981 2.55 256.49 10,302
01/31/96 0.30 30.24 10,011 (0.11) (11.33) 10,290
02/29/96 3.21 321.26 10,333 3.16 325.28 10,616
03/31/96 1.17 120.89 10,453 1.98 210.55 10,826
04/30/96 7.14 746.59 11,200 5.37 581.76 11,408
05/31/96 3.87 433.78 11,634 TOT 4.02 458.39 11,866 TOT
06/30/96 (3.88) (451.63) 11,182 11.82 (4.08) (483.80) 11,383 13.83
</TABLE>
4
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
The investment objective of this Portfolio is to maximize total return,
consisting of capital appreciation and current income, by investing primarily
in a diversified portfolio of equity securities of non-U.S. issuers. As of
June 30, 1996, the manager of the International Equity Portfolio was Brinson
Partners, Inc. ("Brinson").
As can be seen from the table below*, Brinson has constructed a portfolio
whose characteristics are consistent with applicable policies.
<TABLE>
<CAPTION>
P/E RATIO YIELD AVERAGE MARKET CAP
--------- ----- ------------------
<S> <C> <C> <C>
Morgan Stanley EAFE Index............... 27.4x 2.1% $19.9 billion
Brinson Partners........................ 25.7x 2.6% $16.4 billion
</TABLE>
* Source: Evaluation Associates as of June 30, 1996
Brinson has structured a portfolio which is, generally, aligned with the major
components of the Morgan Stanley EAFE Index.
For the fiscal year ended June 30, 1996, the International Equity Portfolio
(launched August 17, 1995) had a total return of 15.15%, which compares to the
Morgan Stanley EAFE Index return of 10.66%. This outstanding result has been
achieved in a highly consistent manner. Brinson's value oriented, risk adverse
approach has led them to underweight Japanese equities and especially the Yen
as they felt that this segment of the developed international equities market
was overvalued and contained too much risk relative to projected returns.
Importantly, Brinson does not invest at any time in the emerging markets of
the world.
A $10,000 investment in the International Equity Portfolio would have
increased to $11,515 (as of June 30, 1996). The graph below shows how this
compares to our benchmark. Total return for the life of the Fund was 15.15%.
[LINE GRAPH APPEARS HERE]
<TABLE>
HIRTLE CALLAGHAN INTERNAT'L EQ FUND RETURN CALCULATION FOR EAFE INDEX
---------------------------------
(MIDEAFE)
<S> <C> <C> <C> <C> <C> <C> <C>
08/17/95 10,000 10,000
08/31/95 0.30 30.00 10,030 (0.19) (19.00) 9,981
09/30/95 1.60 159.98 10,190 1.95 194.63 10,176
10/31/95 1.57 159.98 10,350 (2.68) (272.71) 9,903
11/30/95 (0.29) (29.91) 10,320 2.78 275.30 10,178
12/31/95 3.82 394.33 10,714 4.03 410.08 10,588
01/31/96 1.51 162.00 10,876 0.41 43.41 10,632
02/29/96 0.28 30.35 10,907 0.34 36.15 10,668
03/31/96 1.39 151.82 11,059 2.12 226.16 10,894
04/30/96 3.57 394.90 11,453 2.91 316.69 11,211
05/31/96 (0.62) (70.78) 11,383 TOT (1.84) (206.28) 11,004 TOT
06/30/96 1.17 132.61 11,515 15.15. 0.56 61.93 11,066 10,66
</TABLE>
5
<PAGE>
THE LIMITED DURATION MUNICIPAL BOND PORTFOLIO
The investment objective of this Portfolio is to provide a high level of
current income exempt from Federal income tax, consistent with the
preservation of capital. This Portfolio is designed to have an overall
duration of less than four years and to have a target quality rating of AA as
defined by the Standard & Poor's rating agency. As of June 30, 1996, the
Limited Duration Municipal Bond Portfolio was managed by Morgan Grenfell
Capital Management, Incorporated (Morgan Grenfell).
The following table* compares the structure of the Portfolio with its
appropriate benchmark.
<TABLE>
<CAPTION>
AVERAGE
MATURITY 30 DAY YIELD CREDIT RATING
-------- ------------ -------------
<S> <C> <C> <C>
Merrill Lynch 0-3 yr Municipal In-
dex................................ 1.5 yrs NA AA
Morgan Grenfell..................... 1.9 yrs 5.2% AA
</TABLE>
* Source: Evaluation Associates as of June 30, 1996
For the fiscal year ended June 30, 1996, the Limited Duration Municipal Bond
Portfolio (launched October 10, 1995) had a total return of 3.60%, which
compares to the Merrill Lynch 0-3 Yr Municipal Bond Index return of 2.81%.
This favorable return was achieved in the context of a conservative, risk
averse portfolio of investments. The Portfolio's success during the period is
due to Morgan Grenfell's ability to operate in very inefficient sectors of the
municipal bond market and to discover and capture higher yields with little
additional volatility or credit risk.
A $10,000 investment in the Limited Duration Municipal Bond Portfolio would
have increased to $10,360 (as of June 30, 1996). The graph below shows how
this compares to our benchmark. Total return for the life of the Fund was
3.60%.
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
HIRTLE CALLAGHAN MUNI BOND FUND RETURN CALCULATION FOR MUNI INDEX
---------------------------------
(U1A0,0-3YR)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10/10/96 10,000 10,000
10/31/95 0.86 86.20 10,086 0.33 32.70) 10,033
11/30/95 0.79 79.68 10,166 0.43 42.64 10,075
12/31/95 0.50 51.24 10,217 0.34 34.16 10,109
01/31/96 0.20 20.23 10,237 0.68 68.74 10,178
02/29/96 0.21 21.81 10,259 0.18 18.32 10,197
03/31/96 0.11 11.29 10,270 0.14 14.28 10,211
04/30/96 0.12 12.63 10,283 0.12 12.25 10,223
05/31/96 0.22 22.21 10,305 TOT 0.35 35.78 10,259 TOT
06/30/96 0.53 54.31 10,360 3.60 0.22 22.57 10,281 2.81
</TABLE>
6
<PAGE>
CONCLUSION
The Trust's short first fiscal year has produced some performance shortfalls
and some very robust index beating successes. We are, however, generally
pleased with the investment management teams now in place for each of the
Portfolios and, with the addition of Hotchkis and Wiley to The Value Equity
Portfolio, we believe each is well suited to deliver excellent long term risk
adjusted results. As calendar 1996 has progressed we have begun to see the
quality of our managers' portfolios recognized and rewarded. We expect this to
continue.
In addition to investment matters, cost control has been a significant
management focus during the Trust's first fiscal year of operation. As of June
30, 1996, and with total Trust assets of $349 million, each of the Portfolios
was on target to operate within projected expense ratios. We are optimistic
about our ability to continue to drive down operating expenses and grow the
Portfolios. Every basis point of savings will go directly to the Trust's
shareholders.
We remain grateful for your confidence in us and your continuing support. We
assure you that we will continue to work on your behalf to deliver the best
long-term investment solutions available in the marketplace.
Sincerely,
/s/ Donald E. Callaghan
Donald E. Callaghan
President
7
<PAGE>
THE HIRTLE CALLAGHAN TRUST
VALUE EQUITY PORTFOLIO
Portfolio of Investments -- June 30, 1996
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCK -- 93.00%
COWEN ASSET MANAGEMENT
PORTFOLIO -- 34.65%
ENERGY EQUIPMENT & SERVICES -- 1.15%
9,500 Exxon Corp. .............................. $ 675,233 $ 825,313
----------- -----------
FINANCIAL SERVICES -- 2.56%
21,000 Keycorp .................................. 721,760 813,750
29,000 National City Corp. ...................... 895,602 1,018,625
----------- -----------
1,617,362 1,832,375
----------- -----------
HOLDING COMPANIES --
DIVERSIFIED -- 1.20%
60,000 Hanson plc - ADR+ ........................ 983,481 855,000
----------- -----------
INSURANCE -- 1.31%
27,000 Ohio Casualty Corp. ...................... 918,213 938,250
----------- -----------
OIL & GAS -- 6.53%
9,000 Atlantic Richfield Co. ................... 994,127 1,066,500
22,000 Equitable Resources ...................... 639,299 621,500
28,000 National Fuel Gas Co. .................... 815,393 1,008,000
11,000 Shell Transport and Trading - ADR+ ....... 883,966 968,000
12,000 Texaco Inc. .............................. 948,845 1,006,500
----------- -----------
4,281,630 4,670,500
----------- -----------
PERSONAL CARE -- 1.03%
18,000 Tambrands Inc. ........................... 827,010 735,750
----------- -----------
PUBLISHING & PRINT -- 1.37%
23,000 Readers Digest ........................... 996,188 977,500
----------- -----------
REAL ESTATE -- 2.42%
10,000 Kimco Realty Corp. ....................... 261,775 282,500
41,000 New Plan Realty Trust .................... 905,398 866,125
15,000 Weingarten Realty ........................ 541,970 581,250
----------- -----------
1,709,143 1,729,875
----------- -----------
RETAIL -- 1.54%
21,000 Penney (J.C.) Co. ........................ 976,616 1,102,500
----------- -----------
TELECOMMUNICATIONS -- 1.13%
17,000 NYNEX Corp. .............................. 800,908 807,500
----------- -----------
TOBACCO -- 1.40%
22,000 American Brands Inc. ..................... 941,658 998,250
----------- -----------
UTILITIES -- 13.01%
16,000 Allegheny Power System ................... 478,335 494,000
31,000 Baltimore Gas & Electric Co. ............. 818,709 879,625
32,000 Brooklyn Union Gas Co. ................... 818,070 872,000
30,000 Central & South West Corp. ............... 752,210 870,000
19,000 Consolidated Natural Gas ................. 848,073 992,750
</TABLE>
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
UTILITIES (CONTINUED)
19,000 GTE Corp. ................................ $ 722,915 $ 850,250
38,000 MCN Corp. ................................ 738,718 926,250
13,000 Piedmont Natural Gas Co. ................. 266,368 300,625
32,000 Scana Corp. .............................. 752,758 900,000
32,000 Southern Co. ............................. 707,932 788,000
30,000 Utilcorp United Inc. ..................... 834,888 828,750
20,000 Western Resources ........................ 593,926 597,500
----------- -----------
8,332,902 9,299,750
----------- -----------
TOTAL -- COWEN ASSET MANAGEMENT .......... 23,060,344 24,772,563
----------- -----------
INSTITUTIONAL CAPITAL CORP.
PORTFOLIO -- 58.35%
AEROSPACE/DEFENSE -- 2.31%
11,000 Boeing Co. ............................... 882,801 958,375
7,450 Northrop Grumman Corp. ................... 494,545 507,531
12,900 Trans World Airlines* .................... 250,797 183,825
----------- -----------
1,628,143 1,649,731
----------- -----------
AUTOMOBILE PRODUCTION -- 2.08%
28,350 General Motors Corp. ..................... 1,482,213 1,484,831
----------- -----------
BANKING -- 3.19%
11,550 Citicorp ................................. 805,750 954,319
5,550 Wells Fargo & Co. ........................ 1,375,423 1,325,756
----------- -----------
2,181,173 2,280,075
----------- -----------
CHEMICALS -- 4.47%
16,550 DuPont E.I. DeNemours & Co. .............. 1,182,834 1,309,519
36,050 Hoechst AG - ADR+ ........................ 1,017,774 1,217,048
9,450 W.R. Grace & Co. ......................... 659,854 669,769
----------- -----------
2,860,462 3,196,336
----------- -----------
COMPUTERS -- 0.77%
11,250 Compaq Computer Corp.* ................... 513,610 554,063
----------- -----------
COMPUTER EQUIPMENT -- 2.38%
12,700 International Business Machines Corp. .... 1,248,328 1,257,300
18,700 Silicon Graphics* ........................ 536,250 448,800
----------- -----------
1,784,578 1,706,100
----------- -----------
ELECTRONIC COMPONENTS AND INSTRUMENTS -- 3.38%
8,900 Duracell International ................... 385,465 383,813
19,600 Nokia Corp ADR+ .......................... 748,985 725,200
40,100 Philips Electronics NV ................... 1,727,044 1,308,263
----------- -----------
2,861,494 2,417,276
----------- -----------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
THE HIRTLE CALLAGHAN TRUST
VALUE EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1996
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCK (CONTINUED)
INSTITUTIONAL CAPITAL CORP.
PORTFOLIO (CONTINUED)
ENTERTAINMENT -- 3.05%
18,600 Carnival Cruise Lines, Inc. .............. $ 478,301 $ 537,075
32,000 Time Warner Inc. ......................... 1,205,797 1,256,000
13,600 Harrah's Entertainment* .................. 451,247 384,200
----------- -----------
2,135,345 2,177,275
----------- -----------
FINANCIAL SERVICES -- 2.25%
14,900 Keycorp. ................................. 516,122 577,375
22,675 Travelers Inc. ........................... 815,351 1,034,547
----------- -----------
1,331,473 1,611,922
----------- -----------
HEALTH CARE -- 1.75%
28,700 Abbott Labratories ....................... 1,173,011 1,248,450
----------- -----------
INSURANCE -- 4.37%
32,300 Allstate Insurance Corp. ................. 1,162,110 1,473,688
20,900 Loews Corp. .............................. 1,634,971 1,648,488
----------- -----------
2,797,081 3,122,176
----------- -----------
LODGING -- 0.72%
24,200 Host Marriott Corp. ...................... 306,098 317,625
3,700 Marriott International Inc. .............. 177,372 198,875
----------- -----------
483,470 516,500
----------- -----------
MEDICAL MANAGEMENT &
SERVICES -- 0.54%
18,200 Tenet Healthcare Corp. ................... 308,289 389,025
----------- -----------
METALS - STEEL -- 1.63%
18,200 Allegheny Ludlum ......................... 373,544 343,525
14,300 Aluminum Co. of America .................. 848,384 820,462
----------- -----------
1,221,928 1,163,987
----------- -----------
MULTI-INDUSTRY -- 0.56%
16,050 ITT Industries Inc. ...................... 415,411 403,256
----------- -----------
OIL & GAS -- 3.26%
16,450 Amoco Corp. .............................. 1,136,141 1,190,569
10,150 Mobil .................................... 1,084,385 1,138,069
----------- -----------
2,220,526 2,328,638
----------- -----------
PHARMACEUTICALS -- 4.77%
11,500 American Home Products Corp. ............. 570,545 691,437
13,700 Bristol Myers Squibb ..................... 1,173,363 1,233,000
24,350 Ciba-Geigy
AG - ADR+ ............................... 1,047,633 1,483,402
----------- -----------
2,791,541 3,407,839
----------- -----------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL COST VALUE
--------- ---- -----
<C> <S> <C> <C>
PUBLISHING & PRINTING -- 4.20%
26,350 Dun & Bradstreet Corp. .................. $ 1,675,609 $ 1,646,875
67,500 News Corp. Ltd -
ADR+* .................................. 1,335,815 1,358,437
----------- -----------
3,011,424 3,005,312
----------- -----------
RETAIL -- 1.06%
22,200 Federated Department Store Inc.* ........ 623,247 757,575
----------- -----------
RETAIL - GROCERY -- 0.22%
4,000 Kroger Co. .............................. 154,850 158,000
----------- -----------
TELECOMMUNICATIONS -- 4.03%
24,350 American Telephone & Telegraph Co. ...... 1,496,472 1,509,700
40,600 Pacific Telesis Group ................... 1,371,475 1,370,250
----------- -----------
2,867,947 2,879,950
----------- -----------
TOBACCO -- 1.98%
13,600 Philip Morris Cos. Inc. ................. 1,148,662 1,414,400
----------- -----------
TOYS -- 1.12%
14,400 Hasbro Inc. ............................. 498,858 514,800
10,000 Mattel Inc. ............................. 247,091 286,250
----------- -----------
745,949 801,050
----------- -----------
TRANSPORTATION -- 4.26%
10,200 Burlington Northern Co. ................. 766,812 824,925
12,100 Consolidated Rail ....................... 873,290 803,137
20,300 Union Pacific Corp. ..................... 1,369,011 1,418,461
----------- -----------
3,009,113 3,046,523
----------- -----------
TOTAL -- INSTITUTIONAL CAPITAL CORP. .... 39,750,940 41,720,290
----------- -----------
TOTAL -- COMMON STOCK ................... 62,811,284 66,492,853
----------- -----------
SHORT-TERM INVESTMENTS -- 6.64%
COWEN ASSET MANAGEMENT -- 3.29%
$1,120,000 American Express Comercial Paper, 5.29%
due 07/03/96 ........................... 1,120,000 1,120,000
1,230,000 Ford Motor Credit Corp., 5.37% due
07/02/96 ............................... 1,230,000 1,230,000
----------- -----------
TOTAL -- COWEN ASSET MANAGEMENT ......... 2,350,000 2,350,000
----------- -----------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
THE HIRTLE CALLAGHAN TRUST
VALUE EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1996
<TABLE>
<CAPTION>
PRINCIPAL COST VALUE
--------- ---- -----
<C> <S> <C> <C>
SHORT-TERM INVESTMENTS (CONTINUED)
INSTITUTIONAL CAPITAL CORP. -- 3.35%
$ 800,000 Ford Motor Credit Corp., 5.34% due
07/12/96 ........................... $ 798,695 $ 798,695
1,300,000 Ford Motor Credit Corp., 5.34% due
07/01/96 ........................... 1,300,000 1,300,000
300,000 Walt Disney Co., 5.24% due
07/29/96 ........................... 298,777 298,777
----------- -----------
TOTAL -- INSTITUTIONAL CAPITAL
CORP. .............................. 2,397,472 2,397,472
----------- -----------
TOTAL -- SHORT-TERM INVESTMENTS ..... 4,747,472 4,747,472
----------- -----------
TOTAL INVESTMENTS --
99.64% ............................. $67,558,756++ 71,240,325
===========
CASH AND OTHER ASSETS LESS
LIABILITIES --
0.36% .............................. 262,307
-----------
TOTAL NET ASSETS --
100.00% ............................ $71,502,632
===========
</TABLE>
* Non-income producing security.
+ American Depository Receipts.
++ The cost of securities for Federal income tax purposes is substantially the
same.
See accompanying notes to financial statements.
10
<PAGE>
THE HIRTLE CALLAGHAN TRUST
GROWTH EQUITY PORTFOLIO
Portfolio of Investments -- June 30, 1996
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCK -- 97.78%
JENNISON ASSOCIATES CAPITAL
CORP. PORTFOLIO -- 48.36%
ADVERTISING -- 0.66%
15,800 Omnicom Group, Inc. ........................ $ 534,651 $ 734,700
------------ ------------
AEROSPACE/DEFENSE -- 2.39%
18,500 Boeing Co. ................................. 1,347,408 1,611,813
12,400 Delta Air Lines Inc. ....................... 989,966 1,029,200
------------ ------------
2,337,374 2,641,013
------------ ------------
BEVERAGES -- 1.51%
11,400 Coca Cola Co. .............................. 384,067 557,175
31,600 Pepsico, Inc. .............................. 878,280 1,117,850
------------ ------------
1,262,347 1,675,025
------------ ------------
BROADCASTING -- 0.72%
26,700 Infinity Broadcasting....................... 649,829 801,000
------------ ------------
CAPITAL GOODS -- 0.35%
11,700 Harnischfeger Industries, Inc. ............. 429,656 389,025
------------ ------------
COMMERCIAL SERVICES -- 1.88%
18,600 America Online Inc.*........................ 928,240 813,750
26,000 CUC International, Inc.*.................... 861,205 923,000
8,800 Manpower Inc. .............................. 346,442 345,400
------------ ------------
2,135,887 2,082,150
------------ ------------
COMPUTERS -- 2.41%
13,300 Compaq Computer Corp. ...................... 643,780 655,025
17,300 Computer Associates International, Inc. .... 979,018 1,232,625
9,700 First Data Corp. ........................... 613,301 772,362
------------ ------------
2,236,099 2,660,012
------------ ------------
COMPUTER EQUIPMENT -- 2.90%
13,600 Autodesk, Inc. ............................. 589,311 406,300
16,000 Dell Computer Corp.*........................ 542,546 814,000
7,300 Microsoft Corp.*............................ 715,749 876,913
13,200 Seagate Technology Inc.*.................... 755,781 594,000
11,600 Symbol Technologies, Inc.*.................. 435,044 516,200
------------ ------------
3,038,431 3,207,413
------------ ------------
COMPUTER SOFTWARE -- 4.01%
5,600 Broderbund Software*........................ 315,854 180,600
6,800 Checkpoint Software*........................ 95,200 163,200
27,500 Cisco Systems, Inc.*........................ 1,049,570 1,557,187
16,000 Compuware Corp. ............................ 453,965 632,000
12,400 Electronic Data Systems Corp. .............. 678,897 666,500
7,700 Intuit*..................................... 430,413 363,825
18,900 3COM Corp.*................................. 843,350 864,675
------------ ------------
3,867,249 4,427,987
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
CONSUMER NON-DURABLES -- 0.68%
12,100 Gillette Company............................ $ 556,153 $ 754,737
------------ ------------
ELECTRONIC COMPONENTS &
INSTRUMENTS -- 4.69%
11,700 Applied Materials, Inc.*.................... 523,811 356,850
14,200 Hewlett Packard Co. ........................ 1,275,793 1,414,675
17,200 KLA Instrument Corp.*....................... 464,823 399,900
20,000 Intel Corp. ................................ 1,259,156 1,468,750
28,600 International Rectifier Corp. .............. 605,230 461,175
21,700 LSI Logic Corp.*............................ 864,901 564,200
14,200 Nokia Corp. ADR+............................ 554,072 525,400
------------ ------------
5,547,786 5,190,950
------------ ------------
ENERGY EQUIPMENT &
SERVICES -- 0.82%
10,700 Schlumberger Ltd. .......................... 834,518 901,475
------------ ------------
ENTERTAINMENT -- 1.56%
18,400 Harrah's Entertainment, Inc.*............... 557,246 519,800
19,100 The Walt Disney Co. ........................ 1,163,411 1,200,913
------------ ------------
1,720,657 1,720,713
------------ ------------
FINANCIAL SERVICES -- 2.98%
14,800 Chase Manhattan Corp. ...................... 957,996 1,045,250
21,200 Federal National Mortgage Association....... 566,975 710,200
9,900 J.P. Morgan & Co. .......................... 809,636 837,788
64,200 Hibernia Corp. Cl. A........................ 645,117 698,175
------------ ------------
2,979,724 3,291,413
------------ ------------
HEALTH CARE -- 2.29%
17,400 Healthsouth Corp.*.......................... 589,572 626,400
22,600 Johnson & Johnson........................... 1,024,856 1,118,700
15,600 United Healthcare Corp. .................... 809,610 787,800
------------ ------------
2,424,038 2,532,900
------------ ------------
INSURANCE -- 1.63%
7,900 Cigna Corp. ................................ 876,927 931,213
20,600 PMI Group................................... 933,225 875,500
------------ ------------
1,810,152 1,806,713
------------ ------------
LODGING -- 1.08%
5,100 Hilton Hotels Corp. ........................ 529,808 573,750
21,100 Promus Hotels Corp.*........................ 486,077 625,088
------------ ------------
1,015,885 1,198,838
------------ ------------
MULTI-INDUSTRY -- 0.76%
12,700 ITT Corp.*.................................. 688,953 841,375
------------ ------------
PERSONAL CARE -- 0.63%
16,400 Estee Lauder Co. ........................... 515,018 692,900
------------ ------------
PHARMACEUTICALS -- 4.87%
18,800 Astra A Fria - ADR+*........................ 653,790 822,500
6,500 Chiron Corp.*............................... 610,293 637,000
14,000 Ciba-Geigy AG-ADR+*......................... 820,384 852,880
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
THE HIRTLE CALLAGHAN TRUST
GROWTH EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1996
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCK (CONTINUED)
JENNISON ASSOCIATES CAPITAL
CORP. PORTFOLIO (CONTINUED)
PHARMACEUTICALS (CONTINUED)
16,900 Eli Lilly & Co. ........................... $ 825,733 $ 1,098,500
13,400 Pfizer Inc. ............................... 857,722 956,425
18,600 Smithkline Beecham
plc - ADR+................................ 910,440 1,011,375
------------ ------------
4,678,362 5,378,680
------------ ------------
PUBLISHING & PRINTING -- 1.01%
15,400 Reuters Holding
plc - ADR+................................ 874,913 1,116,500
------------ ------------
RAW MATERIALS -- 0.64%
9,100 Kimberly Clark Corp. ...................... 663,618 702,975
------------ ------------
RESTAURANT -- 0.53%
15,400 Lone Star Steakhouse & Saloon*............. 516,320 581,350
------------ ------------
RETAIL -- 3.54%
22,400 Autozone, Inc.*............................ 610,226 778,400
13,300 Corporate Express*......................... 433,624 532,000
25,825 Dollar General Corp. ...................... 655,640 843,130
18,800 The Limited Inc. .......................... 384,351 404,200
15,400 Kohl's Corp.*.............................. 419,356 564,025
7,700 Nike Inc. ................................. 625,782 791,175
------------ ------------
3,128,979 3,912,930
------------ ------------
TELECOMMUNICATIONS -- 2.18%
36,800 MCI Communications Corp. .................. 970,825 943,000
13,400 Tellabs, Inc.*............................. 614,365 896,125
15,400 Vodafone Group
plc - ADR+................................ 628,025 567,875
------------ ------------
2,213,215 2,407,000
------------ ------------
TEXTILES AND APPAREL -- 0.62%
10,700 Gucci Group................................ 235,400 690,150
------------ ------------
TELECOMMUNICATIONS
EQUIPMENT -- 0.53%
14,800 Picturetel Corp.*.......................... 569,170 582,750
------------ ------------
UTILITIES -- 0.49%
25,000 Ericsson (L.M.) Telephone Spa - ADR+....... 513,656 537,500
------------ ------------
TOTAL -- JENNISON ASSOCIATES CAPITAL
CORP. .................................... 47,978,040 53,460,174
------------ ------------
WESTFIELD CAPITAL MANAGEMENT
PORTFOLIO -- 49.42%
AEROSPACE/DEFENSE -- 1.34%
17,000 Boeing Co. ................................ 1,401,071 1,481,125
------------ ------------
BANKING -- 1.08%
5,000 Wells Fargo & Co. ......................... 1,248,477 1,194,375
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
BROADCASTING -- 1.24%
38,200 Lin Television Corp.*....................... $ 1,317,900 $ 1,375,200
------------ ------------
COMPUTERS -- 0.98%
13,625 First Data Corp. ........................... 809,465 1,084,891
------------ ------------
COMPUTER EQUIPMENT -- 2.05%
21,000 Ceridian Corp.*............................. 895,055 1,060,500
73,900 Computervision Corp. ....................... 811,404 739,000
10,000 Xylan Corp.*................................ 677,830 465,000
------------ ------------
2,384,289 2,264,500
------------ ------------
COMPUTER SOFTWARE -- 4.13%
32,000 3COM Corp.*................................. 1,283,115 1,464,000
10,800 Computer Sciences Corp.*.................... 654,736 807,300
7,700 Netscape Communications Corp.*.............. 482,726 479,325
13,000 Sterling Software Inc.*..................... 764,780 1,001,000
42,100 USCS International*......................... 757,016 810,425
------------ ------------
3,942,373 4,562,050
------------ ------------
ELECTRONIC COMPONENTS AND INSTRUMENTS -- 2.37%
60,000 Alpha Industries, Inc.*..................... 879,914 532,500
43,000 Analog Devices Inc.*........................ 1,174,202 1,096,500
10,000 Hewlett Packard............................. 1,021,850 996,250
------------ ------------
3,075,966 2,625,250
------------ ------------
ENERGY EQUIPMENT AND
SERVICES -- 0.64%
20,000 BJ Services Co.*............................ 580,877 702,500
------------ ------------
ENGINEERING & CONSTRUCTION -- 1.18%
20,000 Fluor Corp. ................................ 1,338,450 1,307,500
------------ ------------
ENTERTAINMENT -- 0.97%
17,000 The Walt Disney Co. ........................ 1,003,570 1,068,875
------------ ------------
ENVIRONMENTAL -- 1.31%
49,900 Republic Industries Inc.*................... 807,169 1,453,338
------------ ------------
HEALTH CARE -- 0.98%
20,000 Amgen Inc.*................................. 1,142,723 1,080,000
------------ ------------
HOUSEHOLD PRODUCTS -- 1.10%
45,000 First Brands Corp. ......................... 1,010,634 1,215,000
------------ ------------
INDUSTRIAL COMPONENTS -- 1.04%
30,000 Corning Inc. ............................... 1,140,550 1,151,250
------------ ------------
INSURANCE -- 0.81%
30,000 Allmerica Financial Corp. .................. 788,138 892,500
------------ ------------
LODGING -- 1.03%
35,000 Bristol Hotel Co.*.......................... 909,945 1,137,500
------------ ------------
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
THE HIRTLE CALLAGHAN TRUST
GROWTH EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1996
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCK (CONTINUED)
WESTFIELD CAPITAL MANAGEMENT
PORTFOLIO (CONTINUED)
MANUFACTURING -- 2.55%
30,000 Danaher Corp. .............................. $ 1,011,091 $ 1,305,000
37,000 Tyco International.......................... 1,419,823 1,507,750
------------ ------------
2,430,914 2,812,750
------------ ------------
MEDICAL BIOTECHNOLOGY -- 1.01%
20,000 Medtronic Inc. ............................. 1,041,622 1,120,000
------------ ------------
MEDICAL MANAGEMENT &
SERVICES -- 3.67%
35,900 Apria Healthcare Group, Inc.*............... 1,060,985 1,126,362
20,000 Healthcare Compare Corp.*................... 963,760 975,000
45,000 Quorum Health Group*........................ 1,055,350 1,186,875
35,000 Summit Care Corp.*.......................... 778,750 770,000
------------ ------------
3,858,845 4,058,237
------------ ------------
MEDICAL SUPPLIES -- 2.59%
30,000 C. R. Bard Inc. ............................ 1,081,800 1,020,000
17,100 Idexx Laboratories*......................... 720,338 671,175
37,500 Genesis Health Ventures, Inc.*.............. 821,849 1,176,563
------------ ------------
2,623,987 2,867,738
------------ ------------
OIL & GAS -- 4.08%
26,000 Halliburton Co. ............................ 1,099,873 1,443,000
73,100 NGC Corp. .................................. 1,089,448 1,096,500
33,750 Weatherford International, Inc.*............ 868,771 1,012,500
16,500 Western Atlas International, Inc. .......... 722,691 961,125
------------ ------------
3,780,783 4,513,125
------------ ------------
PHARMACEUTICALS -- 2.13%
16,000 Cardinal Health Inc. ....................... 1,152,960 1,154,000
18,500 Merck & Co. ................................ 1,087,985 1,195,563
------------ ------------
2,240,945 2,349,563
------------ ------------
REAL ESTATE -- 2.78%
50,900 Beacon Properties Corp. .................... 1,188,183 1,304,311
25,500 Cali Realty Corp. .......................... 588,526 618,375
35,000 Reckson Associates Realty Corp. ............ 1,077,048 1,155,000
------------ ------------
2,853,757 3,077,686
------------ ------------
RETAIL--GROCERY -- 2.18%
29,700 Albertson's Inc. ........................... 1,108,864 1,228,837
30,000 Kroger Co. ................................. 1,085,020 1,185,000
------------ ------------
2,193,884 2,413,837
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL COST VALUE
--------- ---- -----
<C> <S> <C> <C>
RESTAURANT -- 0.30%
10,000 Quality Dining Inc.*................ $ 237,500 $ 327,500
------------ ------------
SERVICES -- 1.56%
30,000 Service Corp. International......... 1,264,612 1,725,000
------------ ------------
TECHNOLOGY SERVICES -- 1.32%
34,500 Verifone Inc.*...................... 1,549,449 1,457,625
------------ ------------
TELECOMMUNICATIONS -- 1.88%
13,000 Premisys Communications Inc.*....... 539,722 793,000
18,400 Telebras - ADR+..................... 1,160,818 1,281,100
------------ ------------
1,700,540 2,074,100
------------ ------------
TRANSPORTATION -- 1.12%
20,000 Continental Airlines*............... 930,530 1,235,000
------------ ------------
TOTAL -- WESTFIELD CAPITAL
MANAGEMENT......................... 49,608,965 54,628,015
------------ ------------
TOTAL -- COMMON STOCK............... 97,587,005 108,088,189
------------ ------------
SHORT-TERM INVESTMENTS -- 3.08%
JENNISON ASSOCIATES
CAPITAL CORP. -- 0.61%
$ 671,000 Ford Motor Credit Corp. Commercial
Paper, 5.42%, due 07/01/96......... 671,000 671,000
WESTFIELD CAPITAL
MANAGEMENT -- 2.47%
2,730,000 Bankers Trust Repurchase Agreement
3.90%, due 07/01/96 collateralized
by:
$2,703,000 U.S. Treasury Notes,
6.00%, 12/31/97 vs. $2,785,334..... 2,730,000 2,730,000
------------ ------------
TOTAL -- SHORT-TERM INVESTMENTS..... 3,401,000 3,401,000
------------ ------------
TOTAL INVESTMENTS --100.86%......... $100,988,005++ 111,489,189
============
LIABILITIES IN EXCESS OF CASH AND
OTHER ASSETS -- (0.86)%............ (952,629)
------------
TOTAL NET ASSETS --100.00%.......... $110,536,560
============
</TABLE>
*Non-income producing security.
+American Depository Receipts.
++ The cost of securities for Federal income tax purposes is substantially the
same.
See accompanying notes to financial statements.
13
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY PORTFOLIO
Portfolio of Investments -- June 30, 1996
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS -- 92.27%
CLOVER CAPITAL MANAGEMENT, INC. PORTFOLIO -- 43.68%
ADVERTISING -- 1.18%
70,000 Advo, Inc. ............................. $ 906,330 $ 726,250
----------- -----------
BROADCASTING AND PUBLISHING -- 2.54%
85,000 Comcast Corp. CL A*..................... 1,596,026 1,561,875
----------- -----------
CHEMICALS -- 0.25%
7,500 Hanna M A Co. .......................... 120,350 156,563
----------- -----------
COMMERCIAL SERVICES -- 0.88%
40,000 Ideon Group, Inc. ...................... 454,460 540,000
----------- -----------
COMPUTER SOFTWARE -- 2.02%
70,000 Marcam Corp.*........................... 843,400 840,000
10,000 Sungard Data System, Inc.*.............. 283,450 401,250
----------- -----------
1,126,850 1,241,250
----------- -----------
CONSUMER CYCLICAL -- 1.40%
20,000 Designs, Inc.*.......................... 160,500 120,000
50,000 Pier 1 Imports, Inc. ................... 528,163 743,750
----------- -----------
688,663 863,750
----------- -----------
CONSUMER DURABLES -- 0.55%
60,000 Service Merchandise Co.*................ 461,460 337,500
----------- -----------
ELECTRONIC COMPONENTS AND INSTRUMENTS -- 6.38%
60,000 Amphenol Corp.
Cl A*.................................. 1,290,159 1,380,000
25,000 Avnet, Inc. ............................ 1,192,489 1,053,125
57,000 Mentor Graphics Corp.*.................. 887,413 926,250
17,000 Wyle Electronics........................ 551,395 563,125
----------- -----------
3,921,456 3,922,500
----------- -----------
ELECTRICAL AND ELECTRONICS -- 2.63%
50,000 Augat, Inc. ............................ 856,351 956,250
50,000 Pioneer Standard Electronics, Inc. ..... 692,900 662,500
----------- -----------
1,549,251 1,618,750
----------- -----------
ENTERTAINMENT -- 1.77%
30,000 King World Productions, Inc.*........... 1,162,882 1,091,250
----------- -----------
ENVIRONMENTAL -- 0.99%
40,000 Wheelabrator Technologies, Inc.*........ 582,216 610,000
----------- -----------
FOOD - PROCESSING -- 2.55%
40,000 Interstate Bakeries, Corp. ............. 834,488 1,070,000
150,000 United Biscuits Holdings - ADR+......... 669,000 498,000
----------- -----------
1,503,488 1,568,000
----------- -----------
</TABLE>
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
HEALTH CARE -- 2.38%
58,000 Caremark International, Inc. .......... $ 1,297,042 $ 1,464,500
----------- -----------
HOSPITAL MANAGEMENT & SERVICES -- 0.76%
12,000 Salick Healthcare, Inc.*............... 438,000 465,000
----------- -----------
MANUFACTURING HOUSING -- 0.34%
25,000 Stimsonite Corp.*...................... 229,375 209,375
----------- -----------
OIL/GAS-EXPLORATION -- 1.90%
60,000 Union Texas Petroleum Holdings, Inc. .. 1,106,100 1,170,000
----------- -----------
PHARMACEUTICALS -- 1.78%
75,000 Carter-Wallace, Inc. .................. 1,053,750 1,096,875
----------- -----------
PUBLISHING & PRINTING -- 0.89%
20,000 American Greetings Corp. Cl A.......... 603,511 547,500
----------- -----------
REAL ESTATE INVESTMENT TRUST -- 3.77%
30,000 Manufactured Home Communities, Inc. ... 512,000 577,500
8,500 Meditrust Corp. ....................... 287,476 283,687
7,500 Public Storage Management, Inc. ....... 229,483 260,625
26,000 ROC Communities, Inc. ................. 598,425 620,750
28,000 Storage Trust Realty................... 567,000 574,000
----------- -----------
2,194,384 2,316,562
----------- -----------
RETAIL -- 1.65%
50,000 Cash America Investments, Inc. ........ 351,925 325,000
17,000 Melville Corp. ........................ 589,208 688,500
----------- -----------
941,133 1,013,500
----------- -----------
STORAGE -- 0.95%
22,000 Sovran Self Storage, Inc. ............. 544,676 583,000
----------- -----------
TELECOMMUNICATIONS -- 1.24%
50,000 California Microwave, Inc.*............ 1,161,812 762,500
----------- -----------
TOBACCO -- 1.66%
33,000 RJR Nabisco Holding Corp. ............. 1,109,269 1,023,000
----------- -----------
TRANSPORTATION - RAIL -- 2.39%
80,000 Canadian National Railway Co. ......... 1,313,725 1,470,000
----------- -----------
UTILITIES - ELECTRICAL -- 0.83%
20,000 Sierra Pacific Resources............... 438,362 507,500
----------- -----------
TOTAL -- CLOVER CAPITAL MANAGEMENT
INC. ................................. 26,504,571 26,867,000
----------- -----------
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1996
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
FRONTIER CAPITAL MANAGEMENT CO. PORTFOLIO -- 48.60%
AEROSPACE/DEFENSE -- 2.57%
9,500 AAR Corp. ................................ $ 185,344 $ 193,562
36,000 Aeroflex, Inc.*........................... 158,940 220,500
60,800 Banner Aerospace, Inc.*................... 319,622 509,200
16,800 Be Aerospace, Inc.*....................... 163,640 218,400
2,200 Precision Castparts Corp. ................ 78,485 94,600
25,700 UNC Resources, Inc.*...................... 171,756 215,238
4,700 Watkins-Johnson Co. ...................... 216,845 128,663
----------- -----------
1,294,632 1,580,163
----------- -----------
AUTO PARTS -- 0.32%
8,100 Tower Automotive, Inc.*................... 122,425 198,450
----------- -----------
BUILDING MATERIALS & COMPONENTS -- 1.10%
12,000 Drew Industries, Inc.*.................... 168,301 207,000
27,200 Perini Corp.*............................. 287,940 326,400
2,100 Texas Industries, Inc. ................... 102,770 144,113
----------- -----------
559,011 677,513
----------- -----------
BROADCASTING -- 0.84%
4,700 Cablevision System Corp.*................. 233,520 217,375
12,000 Jones Intercable, Inc.
Cl. A*................................... 148,375 160,500
4,600 TCA Cable TV, Inc. ....................... 139,250 139,150
----------- -----------
521,145 517,025
----------- -----------
CHEMICALS -- 1.74%
20,000 AG Services of America, Inc.*............. 225,995 255,000
15,500 General Chemical Group, Inc. ............. 271,250 313,875
33,100 Hexcel Corp.*............................. 377,521 504,775
----------- -----------
874,766 1,073,650
----------- -----------
COMMERCIAL SERVICES -- 1.02%
18,150 Childrens Comprehensive Services, Inc. ... 140,086 390,225
14,600 Protection One, Inc. ..................... 150,807 239,075
----------- -----------
290,893 629,300
----------- -----------
COMPUTER EQUIPMENT -- 4.06%
16,500 4Front Software International, Inc.*...... 94,875 101,062
8,000 Converse Technology, Inc.*................ 143,647 244,000
18,800 Datametrics Corp.*........................ 139,280 94,000
72,100 ISG International Software Corp.*......... 579,056 811,125
</TABLE>
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMPUTER EQUIPMENT (CONTINUED)
7,200 Network General Corp.*.................... $ 128,186 $ 154,800
2,784 Seagate Techology, Inc.*.................. 112,966 125,280
6,800 Sigma Designs, Inc.*...................... 62,050 63,750
10,700 Softkey International, Inc.*.............. 215,334 202,631
21,100 State of The Art, Inc.*................... 218,691 390,350
11,800 Western Digital Corp.*.................... 213,474 308,275
----------- -----------
1,907,559 2,495,273
----------- -----------
COMPUTER SOFTWARE -- 2.83%
11,500 American Business Information, Inc.*...... 184,975 209,875
3,600 Computer Task Group....................... 56,437 101,700
8,500 Compuware Corp.*.......................... 204,450 335,750
15,800 Evans & Sutherland Computer Corp.*........ 368,788 335,750
18,200 HNT Technology Corp.*..................... 182,000 286,650
20,300 Parcplace Digitalk, Inc.*................. 194,181 185,237
15,000 Tecnomatix Technologies, Inc.*............ 273,750 285,000
----------- -----------
1,464,581 1,739,962
----------- -----------
ELECTRICAL AND ELECTRONICS -- 3.37%
1,500 Cherry Corp. - Cl. A*..................... 16,125 16,125
8,000 Cirrus Logic, Inc.*....................... 244,084 140,000
37,600 Encore Wire Corp.*........................ 407,555 394,800
5,200 Harman International Industries, Inc. .... 192,811 256,100
8,700 Oak Industries, Inc.*..................... 216,935 257,738
8,400 Rogers Corp.*............................. 196,117 208,950
8,000 Sheldahl, Inc.*........................... 124,267 167,000
61,000 Spectrum Control, Inc.*................... 311,303 297,375
10,700 Trimble Navigation Ltd.*.................. 182,698 205,975
6,100 Triquint Semiconduct, Inc.*............... 155,550 126,575
----------- -----------
2,047,445 2,070,638
----------- -----------
ELECTRONIC COMPONENTS AND INSTRUMENTS -- 4.41%
32,400 Aavid Thermal Technologies, Inc.*......... 256,950 234,900
13,600 Allen Group, Inc. ........................ 311,387 295,800
18,500 Alpha Industries, Inc.*................... 213,086 164,187
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1996
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
FRONTIER CAPITAL MANAGEMENT CO. PORTFOLIO (CONTINUED)
ELECTRONIC COMPONENTS AND INSTRUMENTS (CONTINUED)
14,000 Amphenol Corp.
Cl. A*................................... $ 340,058 $ 322,000
4,100 DII Group, Inc.*.......................... 139,004 104,550
9,900 Lattice Semiconductor Corp.*.............. 245,310 238,837
5,500 Maxim Integrated Products, Inc.*.......... 194,494 150,219
5,700 Nokia Corp.
Cl. A - ADR+*........................... 224,837 210,900
24,600 Saftytek Corp.*........................... 324,632 258,300
19,800 Semiconductor Packaging Materials*........ 188,558 212,850
11,400 TSX Corp.*................................ 207,604 316,350
14,600 VLSI Technology, Inc.*.................... 261,620 202,575
----------- -----------
2,907,540 2,711,468
----------- -----------
ENGINEERING AND CONSTRUCTION -- 1.03%
29,920 Insituform Techologies Cl. A*............. 349,722 231,880
5,800 Jacobs Engineeing Group, Inc.*............ 130,123 152,975
10,000 J Ray McDermott S.A.*..................... 192,451 250,000
----------- -----------
672,296 634,855
----------- -----------
ENTERTAINMENT -- 0.31%
13,900 Lodgenet, Inc.*........................... 185,160 191,125
----------- -----------
FINANCIAL SERVICES -- 0.42%
8,400 Long Island Bancorp....................... 214,769 256,725
----------- -----------
INSURANCE -- 2.51%
15,500 American Annuity Group, Inc. ............. 186,930 201,500
11,400 Conseco, Inc. ............................ 329,508 456,000
19,900 John Alden Financial Corp. ............... 401,927 440,287
2,400 Mid Ocean Ltd. ........................... 87,581 98,400
8,200 Nymagic, Inc. ............................ 148,569 154,775
7,100 Paul Revere Corp. ........................ 152,160 195,250
----------- -----------
1,306,675 1,546,212
----------- -----------
LEISURE AND TOURISM -- 0.81%
15,000 International Game Technology............. 246,525 253,125
43,900 Topps Company, Inc.*...................... 278,468 246,938
----------- -----------
524,993 500,063
----------- -----------
</TABLE>
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
MACHINERY & ENGINEERING -- 0.37%
5,100 Medar, Inc.*.............................. $ 52,037 $ 52,912
3,400 York International Corp. ................. 154,161 175,950
----------- -----------
206,198 228,862
----------- -----------
MEDICAL SUPPLIES -- 0.33%
12,800 Staar Surgical Co.*....................... 181,491 200,000
----------- -----------
MEDICAL - BIOTECHNOLOGY -- 0.18%
4,900 Protein Design Labs, Inc.*................ 103,697 110,250
----------- -----------
MEDICAL - HOSPITAL MANAGEMENT & SERVICES -- 1.04%
17,000 Quantum Health Resources, Inc.*........... 189,615 289,000
8,000 Quorum Health Group, Inc.*................ 199,152 211,000
5,300 United Wisconsin Services, Inc. .......... 115,502 137,800
----------- -----------
504,269 637,800
----------- -----------
METALS - DIVERSIFIED -- 0.21%
5,100 Titanium Metals Corp.*.................... 123,810 131,963
----------- -----------
OIL & GAS -- 3.23%
2,800 Anadarko Petroleum Corp. ................. 136,903 162,400
11,900 Aquila Gas Pipeline Corp. ................ 122,764 154,700
13,300 Falcon Drilling, Inc.*.................... 141,338 360,762
14,600 Geoscience Corp.*......................... 185,566 204,400
5,500 Louisiana Land & Exploration.............. 218,310 316,937
7,400 Noble Drilling Corp.*..................... 96,200 102,675
10,200 Oryx Energy Co.*.......................... 137,991 165,750
2,100 Production Operators Corp. ............... 64,487 70,875
7,000 Ultramar Corp. ........................... 160,806 203,000
11,100 Varco International, Inc.*................ 108,891 201,188
3,600 Wiser Oil Co. ............................ 48,780 45,450
----------- -----------
1,422,036 1,988,137
----------- -----------
PACKAGING/CONTAINER -- 0.88%
6,000 Ball Corp. ............................... 178,070 172,500
22,700 U.S. Can Corp.*........................... 314,043 368,875
----------- -----------
492,113 541,375
----------- -----------
PHARMACEUTICALS -- 0.36%
33,800 Chantal Pharmacutical Corp.*.............. 243,760 223,925
----------- -----------
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1996
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
FRONTIER CAPITAL MANAGEMENT CO. PORTFOLIO (CONTINUED)
PUBLISHING & PRINT -- 1.79%
19,900 International Imaging Materials, Inc.*.... $ 449,644 $ 472,625
10,500 Scientific Games Holdings Corp.*.......... 344,662 304,500
17,400 Valassis Communications, Inc.*............ 280,130 321,900
----------- -----------
1,074,436 1,099,025
----------- -----------
RETAIL - SPECIALTY -- 0.21%
6,300 Aviation Sales Co.*....................... 119,700 129,150
----------- -----------
STEEL -- 0.87%
5,900 Carpenter Technology Corp. ............... 237,569 188,800
25,300 Oregon Steel Mills, Inc. ................. 322,743 347,875
----------- -----------
560,312 536,675
----------- -----------
TELECOMMUNICATION EQUIPMENT -- 2.60%
4,350 ADC Telecommunication, Inc. .............. 134,140 195,750
14,600 Boston Technology, Inc. .................. 187,734 246,375
17,000 Centigram Communication Corp. ............ 338,553 269,875
2,800 Davox Corp. .............................. 29,723 82,600
19,900 Microwave Power Devise, Inc. ............. 139,935 119,400
27,000 Penril Datacom Networks, Inc. ............ 213,196 364,500
11,000 Spectrian Corp. .......................... 211,773 156,750
11,900 Summa Four, Inc. ......................... 153,126 165,113
----------- -----------
1,408,180 1,600,363
----------- -----------
TELECOMMUNICATIONS -- 1.77%
20,600 Arch Communications Group*................ 506,876 383,675
17,600 Equalnet Holding Corp.*................... 144,100 68,200
8,400 Natural Microsystems Corp.*............... 216,516 294,000
6,400 Qualcomm, Inc.*........................... 204,717 340,000
----------- -----------
1,072,209 1,085,875
----------- -----------
TEXTILES AND APPAREL -- 0.97%
12,000 Donnkenny, Inc.*.......................... 188,918 234,000
24,700 Sport-Haley, Inc.*........................ 250,184 361,238
----------- -----------
439,102 595,238
----------- -----------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL COST VALUE
--------- ---- -----
<C> <S> <C> <C>
TOYS -- 0.86%
13,000 Galoob (Lewis) Toys, Inc.* .............. $ 133,087 $ 367,250
7,900 Toy Biz* ................................ 162,799 159,975
----------- -----------
295,886 527,225
----------- -----------
TRANSPORTATION -- 3.85%
4,100 Alaska Airgroup, Inc.* .................. 100,696 112,237
22,400 America West Airlines Cl. B* ............ 367,270 492,800
4,000 Atlas Air, Inc.* ........................ 69,220 230,000
6,400 Continental Air
Cl. B* ................................. 342,400 395,200
23,300 Mesaba Holdings, Inc.* .................. 190,580 265,038
22,300 OMI Corp.* .............................. 175,635 192,337
5,100 Overseas Shipholding Group .............. 105,678 92,438
12,000 Teekay Shipping Corp.* .................. 301,477 315,000
9,700 World Airways* .......................... 111,600 67,900
30,100 Worldcorp, Inc.* ........................ 352,063 203,175
----------- -----------
2,116,619 2,366,125
----------- -----------
UTILITIES - ELECTRICAL -- 0.51%
12,200 Calenergy Company, Inc.* ................ 250,445 311,100
----------- -----------
WHOLESALE SPECIAL LINE -- 1.22%
18,800 Central Garden & Pet Co.* ............... 148,975 338,400
13,400 Sodak Gaming, Inc.* ..................... 328,996 408,700
----------- -----------
477,971 747,100
----------- -----------
TOTAL -- FRONTIER CAPITAL MANAGEMENT
CO...................................... 25,986,124 29,882,610
----------- -----------
TOTAL -- COMMON STOCKS................... 52,490,695 56,749,610
----------- -----------
CORPORATE BONDS -- 0.82%
CLOVER CAPITAL MANAGEMENT, INC.
$500,000 Meditrust Corp., 7.50%, 03/01/01 ........ 509,877 503,750
----------- -----------
TOTAL CORPORATE BONDS ................... 509,877 503,750
----------- -----------
</TABLE>
See accompanying notes to financial statements.
17
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1996
<TABLE>
<CAPTION>
PRINCIPAL COST VALUE
--------- ---- -----
<C> <S> <C> <C>
SHORT-TERM INVESTMENTS -- 8.53%
CLOVER CAPITAL MANAGEMENT, INC. -- 3.36%
$2,067,946 Bankers Trust Co. Repurchase
Agreement, 3.90%, Due 7/01/96
collateralized by: $2,048,000 U.S.
Treasury Notes, 6.00%, 12/31/97 vs.
$2,110,382 .......................... $ 2,067,946 $ 2,067,946
----------- -----------
FRONTIER CAPITAL MANAGEMENT CO. -- 5.17%
3,180,965 Bankers Trust Co. Repurchase
Agreement, 3.90%, Due 7/01/96
collateralized by: $3,150,000 U.S.
Treasury Notes, 6.00%, 12/31/97 vs.
$3,245,950 .......................... 3,180,965 3,180,965
----------- -----------
TOTAL SHORT-TERM INVESTMENTS ......... 5,248,911 5,248,911
----------- -----------
TOTAL INVESTMENTS -- 101.63% ......... $58,249,483++ 62,502,271
===========
LIABILITIES IN EXCESS OF CASH AND
OTHER ASSETS -- (1.63%) ............. (999,733)
-----------
TOTAL NET ASSETS -- 100.00% .......... $61,502,538
===========
</TABLE>
* Non-income producing security.
+ American Depository Receipts
++ The cost of securities for Federal income tax purposes is substantially the
same.
See accompanying notes to financial statements.
18
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments -- June 30, 1996
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS -- 92.39%
AUSTRALIA -- 4.21%
26,000 Amcor Ltd.
(Forest Products).......................... $ 192,338 $ 177,424
32,500 Australia New Zealand Bank Group
(Financial)................................ 140,569 154,348
31,900 Boral Limited
(Building & Materials)..................... 84,243 83,048
55,600 Broken Hill Proprietary Co. Ltd.
(Metals - Diversified)..................... 784,617 770,670
19,050 Cra Limited (Mining)........................ 279,467 293,958
99,000 David Jones Limited
(Retail Store)*............................ 147,808 137,458
16,491 Lend Lease Corp. Ltd.
(Real Estate)**............................ 234,002 253,690
87,700 M.I.M. Holdings Ltd. (Mining)............... 115,954 113,466
28,700 National Australia Bank Ltd. (Financial).... 244,109 266,037
34,000 News Corp.
(Publishing & Printing).................... 192,529 193,391
44,800 Pacific Dunlop Ltd.
(Holding Company).......................... 99,607 101,080
71,449 Qantas Airways Ltd. (Transportation)........ 118,002 121,187
54,200 Santos Ltd. (Oil & Gas)..................... 157,445 188,137
63,200 Westpac Bank Corp. (Financial).............. 260,427 280,703
19,000 WMC Limited
(Metals - Diversified)..................... 129,935 136,401
----------- -----------
3,181,052 3,270,998
----------- -----------
BELGIUM -- 2.93%
2,900 Delhaize Freres NPV
(Retail - Grocery)......................... 122,200 144,861
2,060 Electrabel NPV (Utilities).................. 454,071 439,879
1,960 Fortis AG NPV (Insurance)................... 233,892 257,121
970 Groupe Bruxells Lambert NPV
(Financial Services)....................... 126,538 121,366
1,080 Kredietbank NPV (Financial)................. 269,387 323,000
1,010 Petrofina S.A. NPV
(Oil & Gas)................................ 299,167 316,572
1,320 Societe Generale de Belique Paris (Multi-
Industries)................................ 100,473 100,064
390 Solvay S.A. (Chemical)...................... 217,464 239,315
450 Tractebel NPV
(Multi-Industries)......................... 162,871 184,209
1,970 Union Miniere NPV (Mining)*................. 139,501 150,910
----------- -----------
2,125,564 2,277,297
----------- -----------
</TABLE>
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
CANADA -- 3.40%
7,200 Alcan Aluminum Ltd. (Metals - Diversified).. $ 241,293 $ 219,535
13,000 Bank of Montreal (Financial)................ 288,465 318,632
4,100 Barrick Gold Corp. (Mining)................. 105,880 111,473
15,900 Canadian Pacific Ltd. (Holding Company)..... 281,976 348,873
5,300 Imperial Oil Ltd.
(Oil & Gas)................................ 189,994 224,026
4,200 Moore Corp. Ltd.
(Business Epuipment)....................... 75,391 78,748
6,200 Noranda Inc.
(Metals - Diversified)..................... 131,202 127,167
6,600 Norcen Energy
(Oil & Gas)................................ 103,610 115,998
3,700 Northern Telecom Ltd. (Telecommunications).. 158,281 201,603
9,800 Nova Corp of Alberta (Utilities)............ 84,276 88,816
9,000 Royal Bank of Canada (Financial)............ 199,848 216,299
6,200 Seagram Co. Ltd.
(Wine & Spirits)........................... 220,969 208,153
15,500 Thompson Corp.
(Publishing & Printing).................... 217,145 245,689
9,500 Trans Canada Pipeline (Utilities)........... 133,911 141,172
----------- -----------
2,432,241 2,646,184
----------- -----------
FINLAND -- 0.52%
15,700 Merita Ltd. (Banking)*...................... 39,161 32,796
6,200 Nokia (Telecommunications).................. 220,256 228,314
2,400 Outokumpu
(Metals - Steel)........................... 44,495 40,313
5,000 Repola (Metals - Steel)..................... 101,694 103,476
----------- -----------
405,606 404,899
----------- -----------
FRANCE -- 8.85%
1,800 Accor Ltd.
(Leisure & Tourism)........................ 234,545 251,665
2,630 Alcatel Alsthom (Telecommunications)........ 252,664 229,309
10,210 Banque National de Paris Cl. A (Financial).. 419,376 358,263
1,888 CEP Communications (Broadcasting)........... 175,450 159,481
1,088 CEP Communications Warrants Exp. 12/31/97
(Brosdcasting)*............................ 8,954 3,169
2,199 Cie Bancaire SA
(Financial Services)....................... 234,186 247,669
</TABLE>
See accompanying notes to financial statements.
19
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1996
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
FRANCE (CONTINUED)
3,440 Cie de Saint Gobain (Building Materials).... $ 435,198 $ 460,252
790 Colas (Construction)........................ 143,315 141,441
3,960 Compagnie de Suez (Financial Services)...... 170,991 144,798
4,480 Credit Local de France (Financial
Services).................................. 373,461 364,511
1,320 Gan (Insurance)*............................ 41,710 35,373
4,600 Generale des Eaux (Utilities)............... 486,825 513,622
2,590 LVMH Moet Hennessey -Louis Vuitton
(Wine & Spirits)........................... 516,419 614,092
5,010 Michelin Cl. B
(Tire & Rubber)............................ 219,932 244,775
5,428 Pechiney Cert D'Invest (Metals)............. 260,439 219,135
4,850 Peugeot S.A.
(Auto Related)............................. 655,838 648,902
10,000 Rhone-Poulenc Ord. (Pharmaceuticals)........ 256,786 262,734
2,600 Seita (Tobacco)............................. 102,265 119,153
4,560 Societe Generale (Financial)................ 505,438 501,186
5,214 Societe Nationale Elf Acquitaine (Oil &
Gas)....................................... 386,190 383,327
7,810 Total Co. Cl. B
(Oil & Gas)................................ 496,425 579,035
7,100 UAP (Insurance)............................. 170,370 144,076
17,400 Usiminas Sacilor (Metals)................... 255,688 250,879
----------- -----------
6,802,465 6,876,847
----------- -----------
GERMANY -- 5.96%
256 Allianz AG Holding (Insurance)**............ 474,239 444,881
707 BASF AG (Chemical).......................... 167,436 201,290
9,660 Bayer AG (Chemical)......................... 272,224 339,743
4,646 Bayer Vereinsbank (Financial)............... 130,011 129,988
465 Bayerische Motoren Werke AG (Auto Related).. 259,873 268,445
642 Commerzbank AG (Banking).................... 146,834 132,735
425 Daimler Benz AG
(Auto Related)*............................ 216,200 227,908
425 Daimler Benz Rights Exp. 7/05/96 (Auto
Related)*.................................. 4,075 59
10,993 Deutsche Bank AG (Financial)................ 507,934 520,554
4,970 Hoechst AG (Chemical)....................... 122,885 167,777
603 Kaufhof Holdings AG (Retail)................ 205,763 227,917
</TABLE>
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
GERMANY (CONTINUED)
300 Man AG (Machinery
& Engineering)............................. $ 84,477 $ 75,167
1,063 Mannesmann AG (Machinery & Engineering)..... 352,263 365,830
164 Muenchener Rueckver AG (Insurance).......... 327,117 334,980
721 Preussag AG
(Holding Company).......................... 203,731 181,600
5,100 RWE AG (Oil & Gas).......................... 187,064 198,292
1,908 Schering AG (Pharmaceuticals)............... 137,918 138,282
2,500 Siemens AG (Manufacturing).................. 141,019 133,949
1,250 Thyssen AG (Steel).......................... 240,284 228,638
5,922 Veba AG (Utilities)......................... 242,360 314,652
----------- -----------
4,423,707 4,632,687
----------- -----------
ITALY -- 2.72%
12,600 Assic Generali (Insurance).................. 301,857 290,340
18,000 Daniele Di Risp (Engineering)............... 67,169 63,946
21,000 Edison Spa (Utilities)...................... 104,806 126,621
5,900 Eni Ads - ADR+
(Oil & Gas)................................ 193,992 295,000
75,000 Fiat Spa (Auto Related)..................... 168,337 131,510
34,000 Instituto Mobiliare Italiano Spa (Financial
Services).................................. 214,246 283,684
33,000 Instituto Nazionale D Assicurazi
(Insurance)................................ 44,113 49,153
42,000 Italgas (Utilities)......................... 121,010 156,737
7,000 Mediobanca Spa
(Financial Services)**..................... 50,132 44,420
101,000 Montedison Spa
(Multi-Industries)*........................ 74,596 58,661
15,000 Rinascente (Retail -Department Store)....... 89,153 107,310
750 Rinascente Warrants Exp 12/31/99 (Retail -
Department Store)*......................... 120 124
13,000 Rinascente Savings (Retail - Department
Store)..................................... 36,685 36,015
650 Rinascente Savings-Warrants Exp 12/31/99
(Retail -Department Store)*................ 475 513
15,000 Sai Risp (Insurance)........................ 69,990 58,080
139,000 Telecom Italia Mobile
de Risp (Telecommunications)............... 144,963 189,368
128,000 Telecom Italia de Risp
(Telecommunications)....................... 166,624 220,690
----------- -----------
1,848,268 2,112,172
----------- -----------
</TABLE>
See accompanying notes to financial statements.
20
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1996
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
JAPAN -- 31.12%
41,000 Amada
(Hand/Machine Tools)....................... $ 439,326 $ 440,981
42,000 Asahi Glass Co.
(Buiding Materials)........................ 474,728 501,504
31,000 Canon, Inc.
(Business Equipment)....................... 567,555 644,244
12,000 Canon Sales
(Business & Public Services)............... 311,653 333,607
37,000 Citizen Watch Co. (Jewelry)................. 290,068 307,912
33,000 Dai Nippon Printing (Publishing &
Printing).................................. 546,213 637,681
27,000 Daiichi Pharmaceutical
Co. Ltd.
(Pharmaceutical)........................... 404,391 415,915
38,000 Daikin Kogyo Co.
(Machinery &
Engineering)............................... 353,980 415,641
19,000 Daiwa House Industries
(Manufacturing/Housing).................... 292,258 294,413
15,400 Fanuc Co.
(Electronic Components).................... 667,567 612,013
26,000 Fujitsu
(Computer Equipment)....................... 283,290 236,988
77,000 Hitachi Ltd.
(Electrical &
Electronics)............................... 809,326 715,887
15,000 Honda Motor Co.
(Auto Related)............................. 278,268 388,296
47,000 Inax (Building Materials)................... 453,897 466,958
12,000 Isetan
(Retail - Department Store)................ 173,480 181,570
17,000 Ito-Yokado Co.
(Retail - Grocery)......................... 936,749 1,024,246
18,000 Kaneka Corp. (Chemicals).................... 118,327 120,919
43,000 Keio Teito Electric Railway
(Transportation)........................... 252,319 254,763
44,000 Kintetsu
(Kinki Nippon Railway)
(Transportation)........................... 341,992 316,434
39,000 Kirin Brewery Co. Ltd. (Brewery)............ 459,171 476,347
8,000 Kokuyo (Office/Business).................... 196,002 220,946
30,000 Kuraray Co. Ltd. (Chemicals)................ 318,410 336,341
8,000 Maeda Road Construction (Engineering &
Construction).............................. 155,710 137,818
</TABLE>
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
JAPAN (CONTINUED)
5,000 Marui Co.
(Retail - Department
Store)..................................... $ 91,206 $ 110,747
59,000 Matsushita Electric Co. (Electronic
Components)................................ 958,049 1,097,074
41,000 Mitsubishi Paper Mills (Forest Products &
Paper)..................................... 247,200 255,993
61,000 NGK Insulators
(Industrial Components).................... 588,994 683,894
3,300 Nintendo (Toys)............................. 227,504 245,447
25,000 Nippon Denso Co. Ltd. (Electrical &
Electronics)............................... 468,662 542,339
23,000 Nippon Meat Packers
(Food Processing).......................... 321,871 327,044
27,000 Nippon Steel Corp. (Steel).................. 88,645 92,535
22,000 Okumura (Construction)...................... 200,894 183,684
154,000 Osaka Gas Corp. (Utilities)................. 532,395 562,884
7,000 Pioneer Electronics (Electrical &
Electronics)............................... 128,557 166,530
26,000 Sankyo Pharmaceutical (Pharmaceuticals)..... 588,973 673,047
9,000 Secom Co.
(Business &
Public Services)........................... 577,952 593,929
12,000 Seino Transport
(Trucking & Leasing)....................... 197,994 189,226
71,000 Sekisui House (Manufacturing/Housing)....... 878,753 808,951
32,000 Shinmaywa Industries
(Auto Related)............................. 286,022 326,679
10,400 Sony Corp.
(Electrical &
Electronics)............................... 576,894 683,475
31,000 Sumitomo Electric
(Metal Fabricate/Hardware)................. 393,699 443,624
41,000 Sumitomo Trust & Banking (Financial)........ 782,543 792,271
26,000 Takeda Chemical Industries
(Pharmaceuticals).......................... 373,164 459,758
8,000 TDK Corp.
(Electrical &
Electronics)............................... 421,360 476,894
31,200 The Bank Of Tokyo-Mitsubishi, Ltd.
(Financial - Bank)......................... 638,383 722,341
35,000 Tokio Marine & Fire (Insurance)............. 414,761 465,773
15,200 Tokyo Electric Power (Utilities)............ 403,236 385,161
26,000 Tokyo Steel (Steel)......................... 509,201 509,525
27,000 Tonen Corp. (Oil & Gas)..................... 402,080 396,226
</TABLE>
See accompanying notes to financial statements.
21
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1996
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
JAPAN (CONTINUED)
148,000 Toray Industries Inc. (Chemical)............ $ 948,014 $ 1,019,852
89,000 Toshiba Corp.
(Electrical &
Electronics)............................... 662,501 632,759
19,000 Toyo Suisan Kaisha
(Food Processing).......................... 194,529 232,066
12,000 Toyota Motor Corp.
(Auto Related)............................. 243,885 299,699
18,000 Yamazaki Baking Co., Ltd. (Food
Processing)................................ 331,220 333,060
----------- -----------
22,803,821 24,193,911
----------- -----------
MALAYSIA -- 2.19%
8,000 Genting BHD (Entertainment)................. 74,080 62,525
18,000 Hume Industries
(Building Materials)....................... 90,378 88,016
61,000 Kuala Lumpur
(Misc - Materials)......................... 133,619 154,028
42,000 Land & General Holdings (Forest Products &
Paper)..................................... 103,747 103,527
22,000 Malayan Banking (Financial)................. 200,157 211,623
23,000 Malaysia International Shipping
(Transportation)........................... 68,757 71,443
10,000 Nestle Malaysia
(Food Processing).......................... 77,240 80,561
33,000 Public Bank BHD (Financial)................. 84,026 91,263
9,000 Resorts World Berhad (Entertainment)........ 53,775 51,583
73,000 Sime Darby Berhad
(Holding Company).......................... 194,284 201,884
32,000 Telecom Malaysia (Telecommunications)....... 275,110 284,729
60,000 Tenaga Nasional (Utilities)................. 246,309 252,505
9,000 YTL Corporation Berhad (Construction)....... 45,396 46,894
----------- -----------
1,646,878 1,700,581
----------- -----------
NETHERLANDS -- 6.02%
8,338 ABN-Amro Holdings NV (Financial)............ 334,665 447,324
700 Akzo Nobel (Chemicals)...................... 77,827 83,841
1,320 DSM NV (Chemical)........................... 108,467 131,041
2,000 Hoogovens & Staalf (Steel).................. 78,745 74,031
18,790 International Nederlanden Group
(Financial)................................ 437,847 560,156
10,834 Koninklijke NV (Telecommunications)......... 388,875 409,908
</TABLE>
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
NETHERLANDS (CONTINUED)
6,550 Philips Electronics (Electronic
Components)................................ $ 273,427 $ 212,911
2,200 Royal Dutch Petroleum -ADR+ (Oil & Gas)..... 283,358 338,250
8,870 Royal Dutch Petroleum
(Oil & Gas)................................ 1,091,556 1,369,411
4,660 Unilever NV
(Food Processing).......................... 603,607 674,136
5,500 Vendex International N.V. (Retail).......... 191,021 191,666
12,100 Verenigde Ned Uitgev
Ver Bezit
(Publishing & Printing).................... 168,166 187,800
----------- -----------
4,037,561 4,680,475
----------- -----------
NEW ZEALAND -- 2.99%
486,900 Brierly Investment Co. (Multi-Industries)... 406,172 460,132
213,400 Carter Holt Harvey (Forest Products &
Paper)..................................... 480,516 486,634
106,400 Fletcher Challenge Paper Ltd. (Forest
Products & Paper)*......................... 188,235 205,473
52,700 Fletcher Challenge Energy Ltd. (Oil &
Gas)*...................................... 147,476 116,206
52,700 Fletcher Challenge Building Ltd.
(Building & Materials)*.................... 156,486 102,854
7,917 Fletcher Forestry (Forest Products &
Paper)..................................... 22,872 9,813
3,100 New Zealand Telecom -ADR+
(Telecommunications)....................... 192,345 206,925
174,800 Telecom Corp of New Zealand
(Telecommunications)....................... 739,244 732,583
----------- -----------
2,333,346 2,320,620
----------- -----------
SPAIN -- 2.99%
4,100 Banco Bilbao Vizcaya (Financial)............ 124,547 166,074
5,210 Banco Central Hisponoamericano (Financial).. 112,530 106,127
900 Banco Popular Espanol (Financial)........... 150,838 160,431
3,600 Banco Santander S.A. (Financial)............ 158,069 168,017
1,500 BCO Santander S.A. (Financial Services)..... 140,356 167,759
15,100 Compania Sevillana de Electricadad
(Utilities)................................ 101,763 139,062
4,800 Empresa Nac Electric (Utilities)............ 250,829 299,321
</TABLE>
See accompanying notes to financial statements.
22
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1996
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
SPAIN (CONTINUED)
1,200 Fomento De Construcciones (Construction).... $ 98,759 $ 99,274
30,600 Iberdrola S.A. (Utilities).................. 249,608 314,048
2,300 Repsol S.A. - ADR+
(Oil & Gas)................................ 75,038 79,925
3,400 Repsol S.A. (Oil & Gas)..................... 102,947 118,216
19,900 Telfonica de Espana (Telecommunications).... 264,903 366,534
2,800 Vallehermoso SA
(Real Estate).............................. 49,155 55,288
5,300 Viscofan
(Food Processing).......................... 82,668 83,764
----------- -----------
1,962,010 2,323,840
----------- -----------
SWITZERLAND -- 2.39%
100 BBC-Brown Boveri (Electronics).............. 118,647 123,711
254 Ciba - Giegy AG (Pharmaceuticals)........... 233,758 309,558
1,614 CS Holding Co. (Financial).................. 148,815 153,494
431 Nestle SA
(Food Processing).......................... 452,925 492,207
35 Roche Holding
AS - Genusshein (Pharmaceuticals).......... 258,116 266,982
205 Schweiz Bankgesellschaft (Financial)........ 200,125 200,691
78 Societe Generale Surveillance (Commercial
Services).................................. 152,607 186,694
455 Zurich Versicherung (Insurance)............. 117,297 123,995
----------- -----------
1,682,290 1,857,332
----------- -----------
UNITED KINGDOM -- 16.10%
62,800 Asda Group
(Retail - Grocery)......................... 102,895 113,547
34,900 Bass plc (Brewery).......................... 376,674 438,193
42,300 Bat Industries (Tobacco).................... 342,783 328,905
19,100 Booker plc
(Food Processing).......................... 119,691 111,755
136,500 British Gas plc (Utilities)................. 558,135 381,326
79,141 British Petroleum Co. plc (Oil & Gas)....... 606,134 693,357
135,800 British Steel plc (Steel/Iron).............. 369,579 346,703
133,600 British Telecom plc (Telecommunications).... 793,025 717,422
17,833 Charter (Multi-Industries).................. 245,216 258,225
72,400 Coats Viyella
(Textiles & Apparel)....................... 227,717 193,267
58,000 FKI plc (Electronics)....................... 148,559 153,027
</TABLE>
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
UNITED KINGDOM (CONTINUED)
156,700 General Electric plc (Electrical &
Electronics)............................... $ 809,812 $ 843,898
22,800 Glaxo Wellcome plc (Pharmaceuticals)........ 298,687 301,485
89,900 Grand Metropolitan plc (Wine & Spirits)..... 593,892 595,771
70,600 Guinness (Wine & Spirits)................... 533,593 512,793
77,400 Hanson plc
(Holding Company).......................... 250,879 214,423
64,100 Hillsdown Holdings
(Food Processing).......................... 186,147 173,101
117,200 House of Fraser (Retail -Department Store).. 280,476 316,496
21,400 Legal & General Group plc (Insurance)....... 202,490 222,194
29,600 Lloyds Abbey Life (Insurance)............... 202,674 234,749
172,700 Lloyds TSB Group plc (Financial)............ 740,538 844,296
42,100 Marks & Spencers plc (Retail - Dept Store).. 283,134 304,481
37,100 Mirror Group plc (Publishing & Printing).... 94,929 118,037
32,500 National Power (Utilities).................. 254,175 262,288
36,700 National Westminster Bank (Financial)....... 342,182 350,864
20,700 Ocean Group (Transportation)................ 111,326 146,818
31,300 P & O Steam (Transportation)................ 254,629 236,087
21,800 Reckitt & Colman (Household Products)....... 232,450 227,700
16,400 Redland (Building Materials)................ 98,900 102,066
23,000 RJB Mining plc (Mining)..................... 190,766 197,399
67,500 Rolls Royce (Aerospace/Defense)............. 190,942 234,662
33,000 Royal Insurance (Insurance)................. 182,147 203,840
17,600 RTZ Corp. (Mining).......................... 254,759 260,314
21,400 Scottish Hydro
(Utilities - Electric)..................... 111,192 98,642
116,700 Sears (Retail - Department Store)........... 187,960 179,307
94,300 Sedgwick Group (Insurance).................. 191,326 201,968
25,500 Smithkline Beecham (Pharmaceuticals)........ 251,634 272,481
86,600 Tesco
(Retail - Grocery)......................... 408,429 395,145
</TABLE>
See accompanying notes to financial statements.
23
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1996
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL COST VALUE
--------- ---- -----
<C> <S> <C> <C>
UNITED KINGDOM (CONTINUED)
23,600 Thames Water (Utilities)............... $ 197,203 $ 207,676
13,000 Unilever
(Food Processing)..................... 246,349 258,251
31,500 Vodafone (Telecommunications).......... 118,813 117,087
20,000 W.H. Smith (Retail -Department Store).. 119,998 147,440
----------- -----------
12,312,839 12,517,486
----------- -----------
TOTAL -- COMMON STOCK.................. 67,997,647 71,815,329
----------- -----------
SHORT-TERM INVESTMENT -- 6.35%
$4,940,000 Banker Trust Co. Time Deposit, 5.3125%,
Due 7/01/96........................... 4,940,000 4,940,000
----------- -----------
TOTAL INVESTMENTS --98.74%............. $72,937,647++ 76,755,329
===========
Cash and Other Assets Less
Liabilities --1.26%................... 976,546
-----------
TOTAL NET ASSETS --100.00%............. $77,731,875
===========
</TABLE>
* Non-income producing security.
+ American Depository Receipts.
** Passive Foreign Investment Company.
++ The cost for Federal income tax purposes is substantially the same.
See accompanying notes to financial statements.
24
<PAGE>
THE HIRTLE CALLAGHAN TRUST
LIMITED DURATION MUNICIPAL BOND PORTFOLIO
Portfolio of Investments -- June 30, 1996
<TABLE>
<CAPTION>
CREDIT PRINCIPAL
RATINGS* AMOUNT COST VALUE
-------- --------- ---- -----
<C> <C> <S> <C> <C>
MUNICIPAL OBLIGATIONS -- 86.20%
ALABAMA -- 0.62%
NR/NR $ 180,000 Pell City Alabama Industrial
Development, Shelby Steel
Fabricators, 7.70%, 09/01/01
(LOC - Southtrust Bank)+....... $ 182,581 $ 182,830
----------- -----------
ARIZONA -- 2.23%
NR/NR 350,000 La Paz County Industrial
Development, Morgan Trailer MFG
Co., 8.00%, 12/01/06
(Pre-Refunded 12/01/96 @
100)+.......................... 354,909 354,263
NR/A- 300,000 Valley Housing Development
Revenue, Section 8 Assistance,
8.00%, 10/01/20................ 307,285 304,341
----------- -----------
662,194 658,604
----------- -----------
ARKANSAS -- 1.12%
Aa/NR 320,000 Arkansas State Development
Finance Authority, 9.375%,
08/01/14....................... 330,721 330,285
----------- -----------
CALIFORNIA -- 3.14%
NR/A+ 500,000 City of Vallejo Housing
Authority, Multi-Family Housing
Revenue, 5.00%, 06/01/07
(Mandatory put 06/01/99 @ 100)
(Surety Bond - Continental
Casualty)...................... 500,000 500,000
NR/A 425,000 Los Angeles Community
Redevelopment Agency Housing
Revenue, 5.50%, 12/01/05....... 425,000 425,000
----------- -----------
925,000 925,000
----------- -----------
COLORADO -- 1.94%
Aa/NR 385,000 Aurora Colorado Housing
Authority, Single-Family Mtg.
Revenue, 7.30%, 05/01/10....... 412,039 407,138
Aa/AA 95,000 Colorado Housing Finance
Authority, Series B-3, 4.125%,
02/01/22
(Optional put 08/01/96 @
100)+.......................... 95,000 94,961
Aa/AA+ 70,000 Colorado Housing Finance
Authority, Series A., 5.90%,
11/01/96....................... 70,223 70,178
----------- -----------
577,262 572,277
----------- -----------
CONNECTICUT -- 2.61%
A2/NR 145,000 Connecticut State Development
Authority, Health Care Project,
5.50%, 09/01/97
(Surety Bond - Aetna/Cigna
etc.).......................... 145,920 145,181
AAA 605,000 Connecticut State Resource
Recovery Authority, GTR
Bridgeport System, 6.75%,
11/15/99 (Escrowed to
Maturity)...................... 628,631 625,419
----------- -----------
774,551 770,600
----------- -----------
DELAWARE -- 2.38%
Aaa/AAA 25,000 Dover Delaware Water & Sewer
Revenue, Series B., 6.80%,
07/01/96 (MBIA)................ 25,000 25,006
NR 600,000 Wilmington Delaware Hospital
Revenue, Osteopathic Hospital
Series A., 10.00%, 10/01/03
(Pre-Refunded 10/01/98 @ 102).. 675,580 677,250
----------- -----------
700,580 702,256
----------- -----------
FLORIDA -- 0.90%
A/A 50,000 Miami Florida Parking Facility
Revenue, Series A., 5.50%,
10/01/96....................... 50,220 50,161
Aaa/NR 200,000 Orange County Housing Authority,
Revenue, 8.10%, 11/01/21 (GNMA
Collateral)+................... 214,162 214,000
----------- -----------
264,382 264,161
----------- -----------
GEORGIA -- 2.40%
Aa3/AA- 200,000 Cobb County Housing Authority,
Multi-Family Housing Revenue,
7.50%, 01/01/97
(LOC - Sun Trust).............. 202,320 202,156
AAA 500,000 Fulton County Housing Authority,
Single Family Revenue, 6.20%,
03/01/13
(GNMA Collateral)+............. 503,657 505,000
----------- -----------
705,977 707,156
----------- -----------
</TABLE>
See accompanying notes to financial statements.
25
<PAGE>
THE HIRTLE CALLAGHAN TRUST
LIMITED DURATION MUNICIPAL BOND PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1996
<TABLE>
<CAPTION>
CREDIT PRINCIPAL
RATINGS* AMOUNT COST VALUE
-------- --------- ---- -----
<C> <C> <S> <C> <C>
MUNICIPAL OBLIGATIONS
(CONTINUED)
ILLINOIS -- 8.80%
A1/AA- $ 100,000 Illinois State, General
Obligation Bonds, 4.75%,
08/01/99....................... $ 99,700 $ 100,048
NR/AA 1,500,000 Illinois State Industrial
Development Financial
Authority, Revenue, 5.00%,
11/01/00
(Asset GTY).................... 1,500,000 1,477,500
Aaa/AAA 500,000 St. Clair County Public Building
Revenue, 8.00%, 12/01/05 (MBIA)
(Escrowed to Maturity)......... 508,504 507,820
A/NR 495,000 Woodridge Mortgage Revenue,
Series 1992-1, 7.25%,
12/01/10....................... 519,465 508,613
----------- -----------
2,627,669 2,593,981
----------- -----------
INDIANA -- 1.45%
A/NR 335,000 Indiana Health Facility
Financing Authority, Revenue,
9.25%, 10/01/17
(Pre-Refunded 10/01/97 @ 102).. 364,004 362,219
Aaa/AAA 65,000 Reid Memorial Hospital, 6.25%,
05/01/00 (AMBAC) (Escrowed to
Maturity)...................... 66,944 65,731
----------- -----------
430,948 427,950
----------- -----------
KENTUCKY -- 0.21%
AAA/NR 60,000 University of Kentucky Revenue,
Series A., 7.50%, 08/01/97
(Pre-Refunded 08/01/96 @ 103).. 62,139 61,975
----------- -----------
LOUISIANA -- 1.45%
NR/AAA 435,000 Jefferson Parish Home Mortgage
Authority, Series A., 4.85%,
12/01/01
(FNMA/GNMA Collateral)+........ 435,099 428,475
----------- -----------
MARYLAND -- 1.27%
NR/A+ 375,000 Montgomery County Housing
Authority, Multi-Family
Revenue, 6.00%, 02/01/07
(Mandatory put 02/01/97 @ 100)
(Insured by New England
Mutual)........................ 375,655 375,165
----------- -----------
MASSACHUSETTS-0.92%
Aaa/AAA 50,000 Boston Massachusetts General
Obligation, Series A., 5.90%,
07/01/96 (MBIA)................ 50,000 50,000
Aaa/AAA 55,000 Massachusetts State Industrial
Finance Agency, Brandeis
University Series C., 6.40%,
10/01/96 (MBIA)................ 55,389 55,304
Aaa/AAA 40,000 Massachusetts State Water
Reserve Authority, Series A.,
5.75%, 12/01/96 (Escrowed to
Maturity)...................... 40,348 40,312
A/A 50,000 Massachusetts State Water
Reserve Authority, Series A.,
5.60%, 07/15/96................ 50,038 50,031
NR/A- 75,000 Plymouth County Massachusetts,
Certificates of Participation,
Series A., 6.10%, 04/01/98..... 77,565 76,594
----------- -----------
273,340 272,241
----------- -----------
MINNESOTA -- 1.41%
NR/A- 400,000 Apple Valley Housing
Development, Revenue, 7.40%,
08/01/98 (LOC - Banque
Paribas)....................... 413,879 415,500
----------- -----------
MICHIGAN -- 5.75%
A/A 1,600,000 Michigan State Housing
Development Authority, Home
Improvement Series B., 7.65%,
12/01/12+...................... 1,694,946 1,694,000
----------- -----------
MISSISSIPPI -- 1.29%
Aaa/NR 385,000 Mississippi Home Corp. Mortgage
Access Program, Single-Family
Mtg. Revenue, Series A., 4.50%,
06/01/99 (GNMA MBS
Collateral)+................... 384,731 379,225
----------- -----------
MISSOURI -- 2.09%
Aaa/AAA 595,000 St. Louis County, Single-Family
Mtg. Revenue, 9.25%, 10/01/16
(AMBAC)........................ 608,507 615,825
----------- -----------
NEW HAMPSHIRE -- 0.08%
Aa/AA+ 25,000 New Hampshire State Business
Finance Authority, Manchester
Airport Project, 5.35%,
01/01/97+...................... 25,101 25,030
----------- -----------
NEW JERSEY -- 3.82%
A/AA 1,100,000 Jersey City School Board
Revenue, 7.90%, 08/01/06....... 1,135,015 1,125,278
----------- -----------
NEW YORK -- 1.90%
Aa/AA 500,000 New York State Dorm Authority
Revenue, Cornell University,
6.875%, 07/01/06............... 510,000 510,000
Aa/NR 50,000 New York State Mortgage Agency
Revenue, Homeowner Mortgage
Series SS., 6.90%, 10/01/96+... 50,334 50,294
----------- -----------
560,334 560,294
----------- -----------
</TABLE>
See accompanying notes to financial statements.
26
<PAGE>
THE HIRTLE CALLAGHAN TRUST
LIMITED DURATION MUNICIPAL BOND PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1996
<TABLE>
<CAPTION>
CREDIT PRINCIPAL
RATINGS* AMOUNT COST VALUE
-------- --------- ---- -----
<C> <C> <S> <C> <C>
MUNICIPAL OBLIGATIONS
(CONTINUED)
OHIO -- 1.62%
A/A $ 465,000 Cleveland Ohio Airport Systems
Revenue, 7.00%, 01/01/06....... $ 480,287 $ 476,062
----------- -----------
OKLAHOMA -- 0.66%
Aaa/AAA 190,000 Tulsa Oklahoma International
Airport, Revenue, 6.20%,
06/01/00 (Escrowed to
Maturity)...................... 194,872 194,988
----------- -----------
PUERTO RICO -- 0.34%
A1/A 50,000 Puerto Rico Commonwealth, Public
Improvement, 6.00%, 07/01/96
(LOC - Fuji Bank LTD).......... 50,000 50,000
Aaa/AAA 50,000 Puerto Rico Electric Power
Authority, Series M., 6.70%,
07/01/96 (BIG)................. 50,000 50,000
----------- -----------
100,000 100,000
----------- -----------
PENNSYLVANIA -- 23.11%
A1/A 50,000 Butler County Hospital
Authority, Revenue, 7.50%,
07/01/96 (LOC - Fuji Bank
LTD)........................... 50,000 50,011
Aa/AA 25,000 Chester County Solid Waste
Revenue, Series B., 6.65%,
01/01/98 (Cnty. GTD)........... 25,583 25,812
A/NR 500,000 Cumberland Valley School
District, Series A., 5.90%,
09/01/98....................... 501,134 501,085
NR/A 100,000 Dauphin County Industrial
Development Authority, Brubaker
Tool Corp., 7.10%, 12/01/02
(LOC - Marine Bank)+........... 100,994 100,751
Aa3/AA- 40,000 Delaware County Industrial
Development Authority, Series
A., 7.65%, 12/01/01
(LOC - Bank of America)........ 41,757 41,841
Aa3/AA 690,000 Delaware County Industrial
Development Authority, Series
A., 8.10%, 12/01/13
(LOC - Bank of America)........ 718,154 717,262
NR/NR 120,000 Edgewood Pennsylvania School
District, 5.90%, 08/01/99
(Escrowed to Maturity)......... 122,510 120,044
MIG1/NR 200,000 Ephrata Pennsylvania School
District, 5.40%, 12/15/97...... 201,609 201,280
NR/NR 50,000 Erie Public School Authority
School Revenue, 6.50%, 09/01/97
(Escrowed to Maturity)......... 50,746 50,500
A1/NR 120,000 Haverford School District
Revenue, 3.99%, 06/01/97
(Escrowed to Maturity)......... 115,756 115,694
NR 100,000 Montgomery County Industrial
Development, Meadowood Corp.,
5.00%, 12/01/96................ 100,000 99,956
Aaa/AAA 15,000 Neshaminy Pennsylvania School
District, 6.00%, 06/01/98
(FGIC)......................... 15,000 15,116
Aa/AA 550,000 Pennsylvania Housing Finance
Authority, Single Family Mtg.
Series 27, 8.10%, 10/01/10+.... 571,368 564,437
A1/AA- 1,690,000 Pennsylvania State General
Obligation, Revenue, 5.50%,
10/01/97....................... 1,709,758 1,699,667
A1/AA- 1,210,000 Pennsylvania State Highway
General, Revenue, 5.50%,
10/01/97....................... 1,224,146 1,216,921
Aaa/AAA 500,000 Philadelphia Hospital & High Ed
Authority, Moss Rehabilitation
Hospital Revenue, 6.90%,
07/01/00 (AMBAC)............... 524,335 538,750
Aaa/AAA 25,000 Pittsburgh General Obligation
Bonds, Series B., 7.00%,
03/01/01 (FGIC)
(Partial Pre-Refunded 03/01/97
@ 102)......................... 25,801 25,886
NR/A 400,000 Scranton-Lackawanna Health &
Welfare Authority, St. Josephs
Hospital, 7.75%, 12/15/15
(LOC - PNC).................... 409,887 408,104
NR/AAA 320,000 Windber Area Authority Hospital
Revenue, Windber Hospital
Project, 4.75%, 02/01/00
(FHA).......................... 319,600 319,600
----------- -----------
6,828,138 6,812,717
----------- -----------
TEXAS -- 0.84%
Aa/AA 250,000 Texas State, General Obligation
Bonds, 3.75%, 08/01/97......... 247,650 248,845
----------- -----------
TENNESSEE -- 4.25%
Aaa/NR 845,000 Hamilton County Industrial
Development Authority, Multi-
Family Housing Revenue, 6.25%,
10/01/08 (Mandatory put
10/01/97 @ 100) (LOC - Guardian
S & L)......................... 848,632 851,338
NR/A+ 400,000 Hendersonville Industrial
Development Authority, Multi-
Family Housing Revenue, 5.375%,
02/01/06 (Mandatory put
02/01/98 @ 100) (Surety Bond
Continental Casualty).......... 403,280 402,200
----------- -----------
1,251,912 1,253,538
----------- -----------
UTAH -- 0.07%
Aaa/AAA 20,000 Utah Board of Regents Student
Loan Revenue, Series D., 7.00%,
11/01/96 (AMBAC)+.............. 20,191 20,183
----------- -----------
WASHINGTON -- 0.17%
Aa/AA- 50,000 Washington State Public Power
Supply System, Series B.,
6.90%, 07/01/96................ 50,000 50,000
----------- -----------
WEST VIRGINIA -- 2.88%
A/A 845,000 West Virginia Board of Regions,
University of Virginia, 6.60%,
04/01/06....................... 851,471 850,053
----------- -----------
</TABLE>
See accompanying notes to financial statements.
27
<PAGE>
THE HIRTLE CALLAGHAN TRUST
LIMITED DURATION MUNICIPAL BOND PORTFOLIO
Portfolio of Investments (continued) -- June 30, 1996
<TABLE>
<CAPTION>
CREDIT PRINCIPAL
RATINGS* AMOUNT COST VALUE
-------- --------- ---- -----
<C> <C> <S> <C> <C>
MUNICIPAL OBLIGATIONS
(CONTINUED)
WISCONSIN -- 1.17%
Aa/AA $ 345,000 Wisconsin Housing & Economic
Development Authority, Series
B., 6.625%, 09/01/20
(Gemic Pool insured)+......... $ 346,105 $ 345,000
----------- -----------
VIRGINIA -- 3.31%
NR/A+ 100,000 Chesapeake Redevelopment &
Housing Authority, Multi-
Family Housing Revenue, 7.75%,
7/01/16 (Mandatory put
07/01/96 @ 100) (LOC - Nations
Bank of Va.).................. 100,000 100,000
NR 595,000 King George County Industrial
Development Authority, King
County Elementary School,
4.875%, 08/01/98.............. 592,755 591,281
NR/AA 275,000 Virginia State Water and Sewer
Revenue, Series B., 8.70%,
11/01/11 (FNMA GIC)........... 288,600 285,359
----------- -----------
981,355 976,640
----------- -----------
TOTAL MUNICIPAL OBLIGATIONS.... 25,502,592 25,416,134
----------- -----------
SHORT TERM INVESTMENTS -- 8.81%
N/A 1,298,460 Bankers Trust Tax Free Money
Market........................ 1,298,460 1,298,460
N/A 1,298,460 Provident Institutional Funds.. 1,298,460 1,298,460
----------- -----------
TOTAL SHORT TERM INVESTMENTS... 2,596,920 2,596,920
----------- -----------
TOTAL INVESTMENTS -- 95.01%.... $28,099,512++ 28,013,054
===========
Cash and Other Assets Less
Liabilities -- 4.99%.......... 1,471,691
-----------
TOTAL ASSETS 100.00%........... $29,484,745
===========
</TABLE>
* See page 29 for Credit Ratings.
+ Subject to Alternative Minimum Tax.
++ The cost for Federal income tax purposes is substantially the same.
See accompanying notes to financial statements.
28
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Portfolio of Investments (continued) -- June 30, 1996
CREDIT RATINGS (UNAUDITED)
<TABLE>
<CAPTION>
MOODY'S STANDARD & POOR'S
------- -----------------
<C> <C> <S>
Aaa AAA Instrument judged to be of the highest quality
and carrying the smallest amount of investment
risk.
Aa AA Instrument judged to be of high quality by all
standards.
A A Instrument judged to be adequate by all
standards.
MIG1 SP1 Instrument judged to be of the best quality with
strong protection.
NR NR Not Rated. In the opinion of the investment
advisor, instrument judged to be of comparable
investment quality to rated securities which
may be purchased by the Portfolio.
</TABLE>
For items possessing the strongest investment attributes of their category,
Moody's gives that letter a rating followed by a number. The Standard & Poor's
ratings may be modified by the addition of a plus or minus sign to show
relative standing within the major rating categories.
Abbreviations used in this statement:
<TABLE>
<S> <C>
AMBAC....................... American Municipal Bond Assurance Corporation
<CAPTION>
BIG......................... Bond Investors Guaranty
FGIC........................ Financial Guaranty Insurance Corporation
FHA......................... Federal Housing Authority
FNMA........................ Federal National Mortgage Association
General Electric Mortgage Insurance
GEMIC....................... Corporation
GNMA........................ Government National Mortgage Association
GTD......................... Guaranteed
GTY......................... Guaranty
LOC......................... Letter of Credit
MBIA........................ Municipal Bond Insurance Association
</TABLE>
See accompanying notes to financial statements.
29
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Statements of Assets and Liabilities June 30, 1996
<TABLE>
<CAPTION>
SMALL LIMITED
VALUE GROWTH CAPITALIZATION INTERNATIONAL DURATION
----- ------ -------------- ------------- --------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at value (cost
$62,811,284;
$97,587,005; $53,000,572;
$67,997,648;
$25,502,592,
respectively).............. $66,492,853 $108,088,189 $57,253,360 $71,815,329 $25,416,134
Short-term investments (cost
$4,747,472;
$3,401,000; $5,248,911;
$4,490,000;
$2,596,920, respectively).. 4,747,472 3,401,000 5,248,911 4,940,000 2,596,920
Cash........................ 414,320 0 0 121,904 1,039,092
Foreign cash (cost $0; $0;
$0; $474,652; $0,
respectively).............. 0 0 0 474,595 0
Dividends and interest
receivable................. 145,256 92,309 78,119 306,075 423,620
Receivable for investments
sold....................... 0 1,715,463 124,117 226,511 0
Receivable from sponsor..... 0 0 1,263 0 6,961
Receivable from forward
contracts.................. 0 0 0 203,399 0
Foreign tax reclaim......... 0 0 0 66,849 0
Unrealized appreciation on
foreign currency and
forward contracts.......... 0 0 0 1,019,310 0
Unamortized organizational
expenses
(Note 2E).................. 25,506 25,220 25,725 25,388 26,297
----------- ------------ ----------- ----------- -----------
Total Assets.............. 71,825,407 113,322,181 62,731,495 79,199,360 29,509,024
----------- ------------ ----------- ----------- -----------
LIABILITIES
Payable for securities
purchased.................. 259,790 2,500,712 1,165,012 1,357,259 0
Payable to custodian........ 0 174,477 3,220 0 0
Payable for forward
contracts.................. 0 0 0 20,460 0
Advisory fee payable (Note
3)......................... 20,243 31,465 24,727 27,604 5,545
Administrative services fee
payable (Note 3)........... 4,338 6,743 3,709 4,601 1,663
Transfer agent fee payable
(Note 3)................... 1,490 1,492 1,583 1,648 1,178
Other accrued expenses...... 36,914 70,732 30,706 55,913 15,893
----------- ------------ ----------- ----------- -----------
Total Liabilities......... 322,775 2,785,621 1,228,957 1,467,485 24,279
----------- ------------ ----------- ----------- -----------
NET ASSETS................... $71,502,632 $110,536,560 $61,502,538 $77,731,875 $29,484,745
=========== ============ =========== =========== ===========
NET ASSETS CONSIST OF:
Capital stock............... $ 6,228 $ 9,930 $ 5,558 $ 6,906 $ 2,948
Additional paid-in capital.. 64,485,086 101,701,922 56,229,582 71,069,437 29,645,881
Accumulated undistributed
net investment
income/(loss) on
investments................ 27 (45) 172 0 (28,162)
Accumulated undistributed
realized gain/(loss) on
investments and foreign
currency................... 3,329,722 (1,676,431) 1,014,438 1,818,598 (49,464)
Net unrealized
appreciation/(depreciation)
on investments and foreign
currency translations...... 3,681,569 10,501,184 4,252,788 4,836,934 (86,458)
----------- ------------ ----------- ----------- -----------
NET ASSETS................... $71,502,632 $110,536,560 $61,502,538 $77,731,875 $29,484,745
=========== ============ =========== =========== ===========
SHARES OF BENEFICIAL INTEREST
Shares of beneficial
interest outstanding....... 6,228,426 9,930,197 5,557,917 6,906,122 2,947,568
=========== ============ =========== =========== ===========
Net asset value per share
outstanding................ $11.48 $11.13 $11.07 $11.26 $10.00
====== ====== ====== ====== ======
</TABLE>
See accompanying notes to financial statements.
30
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Statements of Operations
<TABLE>
<CAPTION>
VALUE GROWTH SMALL CAPITALIZATION INTERNATIONAL LIMITED DURATION
AUGUST 25, 1995 AUGUST 8, 1995 SEPTEMBER 5, 1995 AUGUST 17, 1995 OCTOBER 10, 1995
(COMMENCEMENT (COMMENCEMENT (COMMENCEMENT (COMMENCEMENT (COMMENCEMENT
OF OPERATIONS) OF OPERATIONS) OF OPERATIONS) OF OPERATIONS) OF OPERATIONS)
THROUGH THROUGH THROUGH THROUGH THROUGH
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1996 1996 1996 1996 1996
--------------- -------------- -------------------- --------------- ----------------
<S> <C> <C> <C> <C> <C>
Investment Income
Interest................... $ 86,298 $ 165,647 $ 159,106 $ 125,330 $ 815,649
Dividends (net of
withholding tax of $350,
$630, $0, $120,485, $0,
respectively)............. 1,463,690 578,756 557,137 1,126,075 0
---------- ----------- ---------- ---------- ---------
1,549,988 744,403 716,243 1,251,405 815,649
---------- ----------- ---------- ---------- ---------
Expenses:
Advisory (Note 3).......... 146,057 204,427 152,465 195,488 30,513
Administrative services
(Note 3).................. 48,686 68,142 33,881 48,872 15,263
Fund accounting fees and
expenses
(Note 3).................. 30,042 33,348 32,997 55,252 28,549
Consulting (Note 3)........ 24,343 34,071 16,940 24,436 7,628
Legal...................... 6,861 10,428 4,781 6,650 2,496
Reports to shareholders.... 5,232 11,572 4,797 5,821 987
Audit...................... 13,378 16,815 9,114 12,371 5,377
Registration............... 30,720 51,010 28,400 32,600 19,200
Custodian.................. 12,193 15,843 11,078 42,742 3,304
Trustees................... 2,907 2,907 2,907 2,907 2,907
Transfer agent fees and
expenses (Note 3)......... 3,987 4,036 3,869 4,260 2,451
Amortization of
organizational expenses... 5,234 5,520 5,015 5,352 4,443
Miscellaneous.............. 1,444 4,056 1,654 14,488 1,562
---------- ----------- ---------- ---------- ---------
Total expenses before
waivers................... 331,084 462,175 307,898 451,239 124,680
Less: expenses
waived/reimbursed by
Administrator and
Custodian................. (24,365) (32,878) (43,630) (54,960) (43,821)
---------- ----------- ---------- ---------- ---------
Net expenses............... 306,719 429,297 264,268 396,279 80,859
---------- ----------- ---------- ---------- ---------
Net investment income....... 1,243,269 315,106 451,975 855,126 734,790
---------- ----------- ---------- ---------- ---------
Net realized gain/(loss) on
investments................ 3,455,493 (1,676,431) 1,014,438 721,509 (49,464)
Net realized gain on foreign
currency transactions...... 0 0 0 1,672,504 0
Net unrealized
appreciation/(depreciation)
of investments............. 3,681,569 10,501,184 4,252,788 3,817,681 (86,458)
Net unrealized gain on
foreign currency
transactions............... 0 0 0 1,019,253 0
---------- ----------- ---------- ---------- ---------
Net realized and unrealized
gain/(loss) on investments
and foreign currency
transactions............... 7,137,062 8,824,753 5,267,226 7,230,947 (135,922)
---------- ----------- ---------- ---------- ---------
Net increase in net assets
resulting from operations.. $8,380,331 $ 9,139,859 $5,719,201 $8,086,073 $ 598,868
========== =========== ========== ========== =========
</TABLE>
See accompanying notes to financial statements.
31
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
VALUE GROWTH SMALL CAPITALIZATION INTERNATIONAL LIMITED DURATION
AUGUST 25, 1995 AUGUST 8, 1995 SEPTEMBER 5, 1995 AUGUST 17, 1995 OCTOBER 10, 1995
(COMMENCEMENT (COMMENCEMENT (COMMENCEMENT (COMMENCEMENT (COMMENCEMENT
OF OPERATIONS) OF OPERATIONS) OF OPERATIONS) OF OPERATIONS) OF OPERATIONS)
THROUGH THROUGH THROUGH THROUGH THROUGH
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1996 1996 1996 1996 1996
--------------- -------------- -------------------- --------------- ----------------
<S> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income....... $ 1,243,269 $ 315,106 $ 451,975 $ 855,126 $ 734,790
Net realized gain/(loss) on
investments and foreign
currency transactions...... 3,455,493 (1,676,431) 1,014,438 2,394,013 (49,464)
Net unrealized
appreciation/(depreciation)
of investments and foreign
currency transactions...... 3,681,569 10,501,184 4,252,788 4,836,934 (86,458)
----------- ------------ ----------- ----------- ------------
Net increase in net assets
resulting from operations.. 8,380,331 9,139,859 5,719,201 8,086,073 598,868
----------- ------------ ----------- ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income.. (1,243,242) (315,151) (451,803) (1,399,229) (762,952)
From realized gains......... (125,771) 0 0 (31,312) 0
----------- ------------ ----------- ----------- ------------
Decrease in net assets
resulting from
distributions to
shareholders............... (1,369,013) (315,151) (451,803) (1,430,541) (762,952)
----------- ------------ ----------- ----------- ------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sales of
shares..................... 71,825,228 116,643,472 62,623,020 73,530,380 43,425,188
Net asset value of shares
issued to shareholders in
reinvestment of dividends
and distributions.......... 1,323,521 283,304 399,593 1,306,700 703,436
Net asset value of shares
redeemed................... (8,677,435) (15,234,924) (6,807,473) (3,780,737) (14,499,795)
----------- ------------ ----------- ----------- ------------
Net increase in net assets
from capital share
transactions............... 64,471,314 101,691,852 56,215,140 71,056,343 29,628,829
----------- ------------ ----------- ----------- ------------
Total increase in net
assets..................... 71,482,632 110,516,560 61,482,538 77,711,875 29,464,745
NET ASSETS:
Beginning of period......... 20,000 20,000 20,000 20,000 20,000
----------- ------------ ----------- ----------- ------------
End of period............... $71,502,632 $110,536,560 $61,502,538 $77,731,875 $ 29,484,745
=========== ============ =========== =========== ============
</TABLE>
See accompanying notes to financial statements.
32
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- June 30, 1996
1. DESCRIPTION. The Hirtle Callaghan Trust (the "Trust") was incorporated in
Delaware on December 15, 1994. The Trust is currently comprised of five
portfolios: The Value Equity Portfolio ("Value") (commencement date August 25,
1995), The Growth Equity Portfolio ("Growth") (commencement date August 8,
1995), The Small Capitalization Equity Portfolio ("Small Cap") (commencement
date September 5, 1995), The International Equity Portfolio ("International")
(commencement date August 17, 1995), and The Limited Duration Municipal Bond
Portfolio ("Limited Duration") (commencement date October 10, 1995)
(collectively the "Portfolios"). The Trust is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-ended management
series investment company. Each Portfolio operates as a diversified fund.
2. SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the
significant accounting policies followed by the Portfolios:
A. Portfolio Valuation. The net asset value per share of the Portfolios
is determined once on each Business Day as of the close of the New York
Stock Exchange, which is normally 4 p.m. Eastern Time. Each Portfolio's net
asset value per share is calculated by adding the value of all securities
and other assets of the Portfolio, subtracting its liabilities and dividing
the result by the number of its outstanding shares. Those assets that are
traded on an exchange or in the over-the-counter market are valued based
upon market quotations. Short-term obligations with maturities of 60 days
or less are valued at amortized cost, which constitutes fair value as
determined by the Trust's Board of Trustees. Other assets for which market
quotations are not readily available are valued at their fair value as
determined in good faith by the Trust's Trustees. With the approval of the
Board, any of the Portfolios may use a pricing service, bank, or broker-
dealer experienced in such matters to value the Portfolio's securities.
B. Securities Transactions and Investment Income. Securities transactions
are recorded on a trade date basis. Realized gains and losses from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including
amortization of premium and accretion of discount on investments, is
accrued daily, as earned.
C. Dividend and Capital Gain Distributions to Shareholders. The Limited
Duration Portfolio declares dividends from net investment income daily and
distributes them on a monthly basis. The Value, Growth, and Small Cap
Portfolios declare and distribute dividends from net investment income on a
quarterly basis. The International Portfolio declares and distributes
dividends from net investment income on a semi-annual basis. Net realized
capital gains, if any, will be distributed at least annually for each
Portfolio.
D. Federal Income Taxes. It is the policy of each of the Portfolios to
qualify as a "regulated investment company" under Subchapter M of the
Internal Revenue Code of 1986, as amended. By so qualifying, the Portfolios
will not be subject to Federal income taxes to the extent that they
distribute all of their taxable and tax-exempt income for the fiscal year.
The Portfolios also intend to meet the distribution requirements to avoid
the payment of an excise tax. Accordingly, no provision for taxes is
recorded.
E. Organizational Expenses. Costs incurred in connection with the
organization and initial registration of the Portfolios have been deferred
and are being amortized on a straight-line basis over sixty months,
beginning with each Portfolio's commencement of operations. In the event
any of the initial shares of the Portfolios are redeemed during the
amortization period, the redemption proceeds will be reduced by a pro rata
portion of any unamortized organization expenses in the proportion as the
number of shares being redeemed bears to the number of initial shares
outstanding at the time of redemption.
F. Determination of Net Asset Value and Calculation of Expenses. Expenses
directly attributable to a Portfolio are charged to that Portfolio. Other
expenses are allocated proportionately among the Portfolios in relation to
the net assets of each Portfolio or on another reasonable basis.
33
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- June 30, 1996
G. Foreign Exchange Transactions. The books and records of the Portfolios
are maintained in U.S. dollars, non-U.S. denominated amounts are translated
into U.S. dollars as follows, with the resultant exchange gains and losses
recorded in the Statements of Operations:
(i) market value of investment securities and other assets and
liabilities at the exchange rate on the valuation date,
(ii) purchases and sales of investment securities, income and
expenses at the exchange rate prevailing on the respective date of such
transactions.
H. Use of Estimates. Estimates and assumptions are required to be made
regarding assets, liabilities and changes in net assets resulting from
operations when financial statements are prepared. Changes in the economic
environment, financial markets, and any other parameters used in
determining these estimates could cause results to differ from these
amounts.
I. Other. The Portfolios maintain cash balances with their custodian and
receive a reduction of their custody fees and expenses for the amount of
interest earned on such uninvested cash balances. For financial reporting
purposes, for the period ended June 30, 1996, the amounts recorded on the
Statements of Operations as both custodian fees and reimbursements of
expenses were $12,193, $15,843, $11,078, $42,742, and $3,304 for the Value,
Growth, Small Cap, International and Limited Duration Portfolios,
respectively.
3. INVESTMENT ADVISORY, CONSULTING AND ADMINISTRATIVE CONTRACTS. The Trust
has entered into investment advisory contracts (the "Portfolio Management
Contracts") on behalf of each of the Portfolios with one or more Investment
Managers. Each Investment Manager is responsible for providing a continuous
program of investment management to, and placing all orders for, purchase and
sale of securities and other instruments on behalf of the respective
Portfolios they serve. Each Investment Manager is paid a fee based on average
net assets, calculated and accrued daily and paid monthly at annual rates of
0.30% for the Value and Growth Portfolios, 0.45% for the Small Cap Portfolio,
0.40% for the International Portfolio, and 0.20% for the Limited Duration
Portfolio. For the period ended June 30, 1996, the Investment Managers earned
fees of $146,057, $204,427, $152,465, $195,488, and $30,513, for the Value,
Growth, Small Cap, International and Limited Duration Portfolios,
respectively.
The Investment Managers are as follows:
Value Portfolio -- Cowen Asset Management; Institutional Capital
Corporation.
Growth Portfolio -- Jennison Associates Capital Corp.; Westfield
Capital Management Company, Inc.
Small Cap Portfolio -- Clover Capital Management, Inc.; Frontier
Capital Management Company.
International Portfolio -- Brinson Partners, Inc.
Limited Duration Portfolio -- Morgan Grenfell Capital Management
Incorporated.
Pursuant to a consulting agreement between the Trust and Hirtle Callaghan &
Co., Inc. ("HCCI") (the "HCCI Consulting Agreement"), HCCI is paid a fee
calculated and accrued daily and paid monthly at annual rates of 0.05% of
average net assets per Portfolio. HCCI will make its officers available to
serve as officers and/or Trustees of the Trust, provide office space
sufficient for the Trust's principal office, and monitor the performance of
various investment management organizations, including the Investment
Managers. HCCI does not have investment discretion with respect to Trust
assets but is an adviser to the Trust for purposes of the 1940 Act. For the
period ended June 30, 1996, HCCI earned fees of $24,343, $34,071, $16,940,
$24,436, and $7,628, for the Value, Growth, Small Cap, International and
Limited Duration Portfolios, respectively.
34
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- June 30, 1996
Furman Selz LLC ("Furman Selz") provides the Portfolios with administrative,
fund accounting, dividend and capital gain distribution disbursing and
transfer agency services, pursuant to an administrative agreement (the
"Administrative Agreement"). The services under the Administrative Agreement
are subject to the supervision of the Trust's Board of Trustees and officers
and include day-to-day administration of matters related to the corporate
existence of the Trust, maintenance of its records, preparation of reports,
supervision of the Portfolios' arrangements with their custodian and
assistance in the preparation of the Trust's Registration Statement under
Federal and state laws. Pursuant to the Administration Agreement, the
Portfolios' pay Furman Selz a monthly fee for its services which, on an
annualized basis, will not exceed 0.10% of the average daily net assets of
each Portfolio and is accrued daily. For the period ended June 30, 1996,
Furman Selz earned administrative fees of $48,686, $68,142, $33,881, $48,872,
and $15,263, for the Value, Growth, Small Cap, International and Limited
Duration Portfolios, respectively. Furman Selz waived fees of $12,172,
$17,035, $8,470, $12,218, and $3,816, for the Value, Growth, Small Cap,
International and Limited Duration Portfolios, respectively.
Pursuant to a Services Agreement between the Trust and Furman Selz, Furman
Selz provides the Portfolios with transfer and dividend and capital gain
disbursing agent services, for which it receives a fee of $15.00 per account
per year, plus certain out-of-pocket expenses. For the period ended June 30,
1996, Furman Selz earned transfer agency fees and expenses of $3,987, $4,036,
$3,869, $4,260, and $2,451, for the Value, Growth, Small Cap, International
and Limited Duration Portfolios, respectively.
Pursuant to a Fund Accounting Agreement between the Trust and Furman Selz,
Furman Selz assists the Portfolios in calculating net asset values and
provides certain other accounting services for each Portfolio for an annual
fee of $30,000 per Portfolio, plus certain out-of-pocket expenses. For the
period ended June 30, 1996, Furman Selz earned fund accounting fees and
expenses of $30,042, $33,348, $32,997, $55,252, and $28,549, for the Value,
Growth, Small Cap, International and Limited Duration Portfolios,
respectively.
The ratio of expenses to average net assets for each Portfolio was as
follows: Value -- 0.63%, Growth -- 0.63%, Small Cap -- 0.78%, International --
0.81%, and Limited Duration -- 0.53%. These ratios reflect a voluntary
expense reimbursement by HCCI, to the Small Cap and Limited Duration
Portfolios in the amounts of $24,082 and $36,701, respectively.
4. SECURITIES TRANSACTIONS.
A. Purchase and sale transactions. The aggregate amount of purchases and
sales of investment securities, other than short-term securities, for the
period ended June 30, 1996, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ -----------
<S> <C> <C>
Value................... $105,535,264 $46,179,531
Growth.................. 155,403,898 56,140,462
Small Cap............... 65,813,769 13,826,262
International........... 75,300,673 7,853,324
Limited Duration........ 47,771,758 22,083,536
</TABLE>
35
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- June 30, 1996
B. Federal Income Tax Basis. Cost for book and Federal income tax
purposes were substantially identical as of June 30, 1996. Gross unrealized
appreciation and depreciation on investment securities at June 30, 1996,
based on cost for Federal income tax purposes is as follows:
<TABLE>
<CAPTION>
NET
GROSS GROSS UNREALIZED
UNREALIZED UNREALIZED APPRECIATION /
APPRECIATION DEPRECIATION (DEPRECIATION)
------------ ------------ --------------
<S> <C> <C> <C>
Value............................. $ 4,868,771 $(1,187,202) $ 3,681,569
Growth............................ 13,225,308 (2,724,124) 10,501,184
Small Cap......................... 7,157,979 (2,905,191) 4,252,788
International..................... 5,391,124 (1,573,443) 3,817,681
Limited Duration.................. 28,080 (114,538) (86,458)
</TABLE>
5. CAPITAL SHARE TRANSACTIONS. The Trust is authorized to issue unlimited
shares of capital stock with a par value of $0.001 each. Transactions in
shares of the Portfolios for the period ended June 30, 1996, were as follows:
<TABLE>
<CAPTION>
LIMITED
VALUE GROWTH SMALL CAP INTERNATIONAL DURATION
----- ------ --------- ------------- --------
<S> <C> <C> <C> <C> <C>
Beginning balance....... 2,000 2,000 2,000 2,000 2,000
--------- ---------- --------- --------- ----------
Shares sold............. 6,895,902 11,354,869 6,172,293 7,134,694 4,319,896
Shares issued in rein-
vestment of dividends
and distributions...... 118,398 26,496 39,271 120,738 70,048
Shares redeemed......... (787,874) (1,453,168) (655,647) (351,310) (1,444,376)
--------- ---------- --------- --------- ----------
Net increase in shares.. 6,226,426 9,928,197 5,555,917 6,904,122 2,945,568
--------- ---------- --------- --------- ----------
Ending balance.......... 6,228,426 9,930,197 5,557,917 6,906,122 2,947,568
========= ========== ========= ========= ==========
</TABLE>
6. DERIVATIVE INSTRUMENTS. The International Portfolio may invest in various
financial instruments including positions in forward currency contracts,
currency swaps and purchased foreign currency options. The Portfolio enters
into such contracts for the purpose of hedging exposure to changes in foreign
currency exchange rates on their portfolio holdings.
A forward foreign exchange contract is a commitment to sell or buy a foreign
currency at a future date at a negotiated exchange rate. The Portfolio bears
the market risk which arises from possible changes in foreign exchange values.
Risks may arise from the potential inability of counterparties to meet the
terms of their contracts and from unanticipated movements in the value of the
foreign currency relative to the U.S. dollar. Forward foreign exchange
contracts may involve market or credit risk in excess of the amounts reflected
on the Portfolio's statement of assets and liabilities.
The gain or loss from the difference between the cost of original contracts
and the amount realized upon closing of such contracts is included in net
realized gain on foreign currency transactions. Fluctuations in the value of
forward contracts held at June 30, 1996, are recorded for financial reporting
purposes as unrealized gains and losses by the Portfolio.
36
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- June 30, 1996
The table below indicates the International Portfolio's outstanding forward
positions at June 30, 1996:
<TABLE>
<CAPTION>
Contract Maturity Value on Value on June Unrealized
Currency Amount Date Origination Date 30, 1996 Appreciation
-------------------- ------------- -------- ---------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Sell Belgian Francs 47,200,000 08/19/96 $(1,554,078) $(1,510,778) $ 43,300
Buy Canadian Dollars 6,718,431 08/16/96 4,914,067 4,933,949 19,882
Sell French Francs 28,200,000 08/19/96 (5,565,039) (5,487,720) 77,319
Sell German DeutscheMarks 6,300,000 08/16/96 (4,279,494) (4,148,613) 130,881
Buy Italian Lira 8,500,000,000 08/16/96 5,332,210 5,516,245 184,035
Sell Japanese Yen 867,000,000 08/16/96 (8,276,730) (7,955,592) 321,138
Sell Dutch Guilder 7,700,000 08/16/96 (4,673,472) (4,523,673) 149,799
Buy Swedish Krone 9,442,300 08/16/96 1,400,000 1,419,555 19,555
Sell Swiss Francs 1,375,000 08/16/96 (1,140,992) (1,103,149) 37,843
Buy British Pounds 862,813 08/16/96 1,300,000 1,338,136 38,136
----------
$1,021,888
==========
</TABLE>
7. CAPITAL LOSS CARRYOVERS. At June 30, 1996, the Growth and Limited
Duration Portfolios had net capital loss carryovers of $1,527,636 and $48,759,
respectively, which will be available through June 2004 to offset future
capital gains, if any, of the respective Portfolios.
8. SUBSEQUENT EVENTS. On July 1, 1996, Furman Selz announced that it had
entered into an agreement pursuant to which its mutual funds division would be
acquired by BISYS Group, Inc. ("BISYS") subject to certain conditions. It is
anticipated that, following consummation of that transaction, services
currently provided to the Trust by Furman Selz will be provided to the Trust
by BISYS and certain of its affiliates under terms and conditions
substantially the same as those currently in effect with respect to such
services.
As of July 29, 1996, Cowen Asset Management ceased providing portfolio
management services to the Value Portfolio; on that same date, a portfolio
management agreement between the Trust and Hotchkis and Wiley, L.P.
("Hotchkis") became effective. Pursuant to that agreement and subject to the
approval of the shareholders of the Value Portfolio within 120 days of the
effective date, Hotchkis provides portfolio management services for the Value
Portfolio under the same terms and conditions as the prior manager. Merrill
Lynch & Co., Inc. ("ML") has agreed to acquire all of the partnership interest
in Hotchkis, subject to certain conditions. Subject to the approval of the
shareholders of the Trust, it is anticipated that Hotchkis will continue to
serve as a portfolio manager for the Value Portfolio following the acquisition
of Hotchkis by ML.
37
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Financial Highlights
<TABLE>
<CAPTION>
VALUE GROWTH SMALL CAPITALIZATION INTERNATIONAL LIMITED DURATION
AUGUST 25, 1995 AUGUST 8, 1995 SEPTEMBER 5, 1995 AUGUST 17, 1995 OCTOBER 10, 1995
(COMMENCEMENT (COMMENCEMENT (COMMENCEMENT (COMMENCEMENT (COMMENCEMENT
OF OPERATIONS) OF OPERATIONS) OF OPERATIONS) OF OPERATIONS) OF OPERATIONS)
THROUGH THROUGH THROUGH THROUGH THROUGH
JUNE 30, 1996 JUNE 30, 1996 JUNE 30, 1996 JUNE 30, 1996 JUNE 30, 1996
--------------- -------------- -------------------- --------------- ----------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period................. $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00
------- -------- ------- ------- -------
Income from Investment
Operations:
Net investment income..... 0.22 0.04 0.10 0.16 0.35
Net realized and
unrealized gain on
investments and foreign
currency transactions.... 1.51 1.13 1.07 1.35 0.01
------- -------- ------- ------- -------
Total from investment
operations............... 1.73 1.17 1.17 1.51 0.36
------- -------- ------- ------- -------
Less Distributions:
From net investment
income................... (0.22) (0.04) (0.10) (0.24) (0.36)
From realized gains....... (0.03) 0.00 0.00 (0.01) 0.00
------- -------- ------- ------- -------
Total distributions....... (0.25) (0.04) (0.10) (0.25) (0.36)
------- -------- ------- ------- -------
Net Asset Value, End of
Period.................... $ 11.48 $ 11.13 $ 11.07 $ 11.26 $ 10.00
======= ======== ======= ======= =======
Total Return............... 17.28% 11.69% 11.82% 15.15% 3.60%
Net Assets End of Period
(in thousands)............ $71,503 $110,537 $61,503 $77,732 $29,485
Ratios to Average Net
Assets of:
Net investment income*.... 2.55% 0.46% 1.33% 1.75% 4.78%
Expenses net of
waivers/reimbursements*.. 0.63% 0.63% 0.78% 0.81% 0.53%
Expenses before
waivers/reimbursements*.. 0.68% 0.68% 0.90% 0.92% 0.81%
Portfolio Turnover Rate.... 92% 80% 38% 15% 116%
</TABLE>
- ----------------
* Annualized.
38
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees
of the Hirtle Callaghan Trust:
We have audited the accompanying statements of assets and liabilities,
including the schedules of investments, of the Value Equity, Growth Equity,
Small Capitalization, International Equity and Limited Duration Municipal Bond
Portfolios of the Hirtle Callaghan Trust (the "Trust") as of June 30, 1996,
and the related statements of operations, changes in net assets and financial
highlights for each of the respective periods then ended. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of June 30, 1996, by correspondence with the custodian and brokers.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements and the financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the respective portfolios comprising the Hirtle Callaghan Trust as of
June 30, 1996, and the results of their operations, the changes in their net
assets and their financial highlights for each of the respective periods then
ended, in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
August 23, 1996
39
<PAGE>
THE HIRTLE CALLAGHAN TRUST
TRUSTEES
DONALD E. CALLAGHAN*
JONATHAN J. HIRTLE*
ROSS H. GOODMAN
JARRETT B. KLING
DAVID M. SPUNGEN*
RICHARD W. WORTHAM
* "Interested Person" as that term is defined in the Investment Company Act of
1940.
- --------------------------------------------------------------------------------
SPONSOR COUNSEL
- ------- -------
Hirtle Callaghan & Co., Inc. Stradley Ronon Stevens & Young
575 East Swedesford Road 2600 One Commerce Square
Wayne, Pennsylvania 19087 Philadelphia, Pennsylvania 19103
ADMINISTRATOR AND DISTRIBUTOR INDEPENDENT ACCOUNTANTS
- ----------------------------- -----------------------
Furman Selz LLC Coopers & Lybrand L.L.P.
230 Park Avenue 2400 Eleven Penn Center
New York, New York 10169 Philadelphia, Pennsylvania 19103
CUSTODIAN
- ---------
Bankers Trust Company
14 Wall Street
New York, New York 10005
This report is for the information of the shareholders of The Hirtle Callaghan
Trust. Its use in connection with any offering of the Trust's shares is
authorized only in case of a concurrent or prior delivery of the Trust's
current prospectus. Past performance is not indicative of future results.
