<PAGE>
SEMI-ANNUAL REPORT
THE HIRTLE CALLAGHAN TRUST
December 31, 1996
We are pleased to present the December 31, 1996 semi-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 HIRTLE CALLAGHAN TRUST
VALUE EQUITY PORTFOLIO
Portfolio of Investments -- December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2)
------ ---- --------
<C> <S> <C> <C>
COMMON STOCK -- 95.55%
HOTCHKIS & WILEY PORTFOLIO -- 35.64%
AEROSPACE/DEFENSE -- 1.07%
7,700 Rockwell International Corp.................. $ 384,907 $ 468,738
5,800 Northrop Grumman Corp........................ 396,199 479,950
----------- -----------
781,106 948,688
----------- -----------
AUTOMOBILE PRODUCTION -- 1.74%
26,500 Ford Motor Company........................... 848,483 844,687
12,700 General Motors Corp.......................... 604,606 708,025
----------- -----------
1,453,089 1,552,712
----------- -----------
AUTO PARTS -- .51%
13,900 Dana Corp.................................... 386,142 453,488
----------- -----------
BASIC INDUSTRY -- .73%
13,700 Weyerhaeuser Company......................... 579,236 649,038
----------- -----------
CHEMICALS -- 1.30%
7,100 Dow Chemical Co.............................. 527,388 556,463
10,000 Eastman Chemical Co.......................... 563,587 552,500
2,950 Millenium Chemicals.......................... 76,516 52,363
----------- -----------
1,167,491 1,161,326
----------- -----------
ELECTRONIC COMPONENTS AND
INSTRUMENTS -- .34%
15,000 EG & G Inc................................... 262,785 301,875
----------- -----------
ENERGY EQUIPMENT & SERVICES -- .53%
4,800 Exxon Corp................................... 348,738 470,400
----------- -----------
ENVIRONMENTAL -- .51%
17,300 Browning Ferris Industries................... 402,581 454,125
----------- -----------
FINANCIAL SERVICES -- 4.62%
20,700 Ahmanson & Co................................ 520,334 672,750
8,300 Bankamerica Corp............................. 693,336 827,925
12,000 Comerica Inc................................. 548,688 628,500
8,800 First of America Bank Corp................... 409,367 529,100
22,200 Great Western Financial...................... 526,528 643,800
13,700 Keycorp...................................... 481,785 691,850
3,800 Signet Banking Corp.......................... 112,674 116,850
----------- -----------
3,292,712 4,110,775
----------- -----------
FURNITURE/APPLIANCES -- .57%
10,800 Whirlpool Corp............................... 545,868 503,550
----------- -----------
HOLDING COMPANIES -- DIVERSIFIED -- .31%
41,300 Hanson plc - ADR+............................ 316,779 278,775
----------- -----------
INSURANCE -- 3.31%
12,400 Lincoln National............................. 522,722 651,000
10,700 AON Corp..................................... 528,321 664,738
11,400 Ohio Casualty Corp........................... 393,912 404,700
16,200 Safeco Corp.................................. 532,575 638,888
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2)
------ ---- --------
<C> <S> <C> <C>
INSURANCE (CONTINUED)
10,000 St. Paul Companies........................... $ 524,050 $ 586,250
----------- -----------
2,501,580 2,945,576
----------- -----------
MACHINERY & ENGINEERING -- .54%
23,000 New Holland NV............................... 494,500 480,125
----------- -----------
MANUFACTURING -- .52%
6,700 Harsco Corp.................................. 395,501 458,950
----------- -----------
MEDICAL SUPPLIES -- .35%
8,000 Pharmacia & Upjohn........................... 294,400 317,000
----------- -----------
METALS -- 2.49%
11,200 Aluminum Co. of America...................... 641,536 714,000
12,500 Lukens Inc................................... 261,312 251,562
10,300 Reynolds Metals Co........................... 518,597 580,662
21,300 USX-U.S. Steel Group Inc..................... 522,489 668,288
----------- -----------
1,943,934 2,214,512
----------- -----------
OFFICE EQUIPMENT -- .41%
7,000 Xerox Corp................................... 333,725 368,375
----------- -----------
OIL & GAS -- 4.30%
5,000 Ashland Inc.................................. 183,125 219,375
4,500 Atlantic Richfield Co........................ 493,945 596,250
5,000 Equitable Resources.......................... 148,024 148,750
13,000 National Fuel Gas Co......................... 391,292 536,250
13,800 Tenneco Inc.................................. 583,934 622,725
4,700 Texaco Inc................................... 374,444 461,188
15,100 Ultramer Corp................................ 398,163 477,538
31,800 USX-Marathon Group........................... 644,904 759,225
----------- -----------
3,217,831 3,821,301
----------- -----------
PAPER PRODUCTS -- .92%
13,700 International Paper Company.................. 517,223 553,138
5,500 Union Camp Corp.............................. 264,165 262,625
----------- -----------
781,388 815,763
----------- -----------
RETAIL -- 1.32%
6,000 May Department Stores Inc.................... 282,805 280,500
12,000 Penney (J.C.) Co............................. 564,300 585,000
6,600 Sears Roebuck & Co........................... 295,666 304,425
----------- -----------
1,142,771 1,169,925
----------- -----------
SHIPBUILDING -- .01%
160 Newport News Shipbuilding.................... 2,616 2,400
----------- -----------
TELECOMMUNICATIONS -- 2.56%
10,900 Alltel Corp.................................. 345,262 341,988
18,000 American Telephone & Telegraph............... 690,420 783,000
8,700 NYNEX Corp................................... 422,323 418,687
</TABLE>
See accompanying notes to financial statements.
1
<PAGE>
THE HIRTLE CALLAGHAN TRUST
VALUE EQUITY PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2)
------ ---- --------
<C> <S> <C> <C>
COMMON STOCK (CONTINUED)
HOTCHKIS & WILEY PORTFOLIO (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
13,000 Pacific Telesis Group........................ $ 431,178 $ 477,750
7,800 U. S. West Inc............................... 236,184 251,550
----------- -----------
2,125,367 2,272,975
----------- -----------
TOBACCO -- 1.64%
17,500 American Brands Inc.......................... 752,238 868,437
5,200 Philip Morris................................ 551,638 585,650
----------- -----------
1,303,876 1,454,087
----------- -----------
TRANSPORTATION -- 1.19%
3,500 Consolidated Rail............................ 230,668 348,687
4,900 Norfolk Southern............................. 395,822 428,750
10,100 Ryder System Inc............................. 262,403 284,062
----------- -----------
888,893 1,061,499
----------- -----------
UTILITIES -- 3.85%
17,300 CNS Energy Corp.............................. 523,844 581,711
7,100 Central & South West Corp.................... 184,461 181,937
40,000 Edison International......................... 623,175 795,000
20,200 Illinova Corp................................ 525,806 555,500
11,100 MCN Corp..................................... 229,429 320,512
18,000 New York State Gas & Electric................ 394,290 389,250
2,000 Piedmont Natural Gas Co...................... 41,994 46,750
22,000 Peco Energy.................................. 518,910 555,500
----------- -----------
3,041,909 3,426,160
----------- -----------
TOTAL -- HOTCHKIS & WILEY.................... 28,004,818 31,693,400
----------- -----------
INSTITUTIONAL CAPITAL MANAGEMENT
CORP PORTFOLIO -- 59.91%
AEROSPACE/DEFENSE -- 4.65%
16,300 Boeing Co.................................... 1,436,244 1,733,913
14,500 Northrop Grumman Corp........................ 997,197 1,199,875
25,000 Raytheon Co.................................. 1,201,089 1,203,125
----------- -----------
3,634,530 4,136,913
----------- -----------
AUTOMOBILE PRODUCTION -- 1.87%
29,900 General Motors Corp.......................... 1,544,972 1,666,925
----------- -----------
BANKING -- 4.75%
29,600 Banc One Corp................................ 1,129,896 1,272,800
13,550 Citicorp..................................... 975,330 1,395,650
5,750 Wells Fargo & Co............................. 1,451,875 1,551,063
----------- -----------
3,557,101 4,219,513
----------- -----------
CHEMICALS -- 5.77%
14,850 DuPont Ei DeNemours & Co..................... 1,146,855 1,401,469
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2)
------ ---- --------
<C> <S> <C> <C>
CHEMICALS (CONTINUED)
19,150 Dow Chemical Corp........................... $ 1,499,872 $ 1,500,881
39,300 Rhone-Poulenc
SA-ADR+.................................... 1,056,700 1,331,288
17,350 W.R. Grace & Co............................. 866,392 897,862
----------- -----------
4,569,819 5,131,500
----------- -----------
COMPUTER EQUIPMENT -- 1.51%
8,900 International Business Machines Corp........ 943,923 1,343,900
----------- -----------
ELECTRONIC COMPONENTS AND
INSTRUMENTS -- 4.63%
17,700 General Instruments Corp.................... 408,892 382,762
17,600 Motorola Inc................................ 887,633 1,080,200
15,400 Nokia Corp. ADR+............................ 605,505 885,500
44,300 Philips
Electronics
NV......................................... 1,869,178 1,772,000
----------- -----------
3,771,208 4,120,462
----------- -----------
FINANCIAL SERVICES -- 2.51%
42,400 C S
Holding
ADR........................................ 1,073,195 1,085,440
25,300 Travelers
Inc........................................ 717,774 1,147,988
----------- -----------
1,790,969 2,233,428
----------- -----------
INSURANCE -- 3.60%
8,200 Aetna
Inc........................................ 540,735 656,000
25,550 Allstate
Insurance
Corp....................................... 984,458 1,478,706
11,300 Loews
Corp....................................... 868,960 1,065,025
----------- -----------
2,394,153 3,199,731
----------- -----------
LODGING -- .78%
43,500 Host
Marriott
Corp....................................... 573,475 696,000
----------- -----------
MEDICAL MANAGEMENT & SERVICES -- .92%
37,500 Tenet
Healthcare
Corp....................................... 742,481 820,313
----------- -----------
METALS - STEEL -- .52%
20,200 Allegheny
Teldyne
Inc........................................ 414,950 464,600
----------- -----------
MULTI-INDUSTRY -- 1.24%
25,450 ITT
Corp....................................... 1,404,636 1,103,894
----------- -----------
OIL & GAS -- 3.85%
20,650 Amoco
Corp....................................... 1,425,297 1,662,325
38,900 Elf Aquitane
- ADR+..................................... 1,533,743 1,760,225
----------- -----------
2,959,040 3,422,550
----------- -----------
PHARMACEUTICALS -- 5.32%
22,250 American Home
Products
Corp....................................... 1,224,560 1,304,406
14,200 Bristol Myers
Squibb..................................... 1,229,926 1,544,250
32,940 Novartis AG
ADR+....................................... 1,451,635 1,880,181
----------- -----------
3,906,121 4,728,837
----------- -----------
POLLUTION CONTROL -- 1.21%
33,100 WMX
Technologies
Inc........................................ 1,119,774 1,079,888
----------- -----------
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
THE HIRTLE CALLAGHAN TRUST
VALUE EQUITY PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL VALUE
AMOUNT COST (NOTE 2)
--------- ---- --------
<C> <S> <C> <C>
COMMON STOCK (CONTINUED)
INSTITUTIONAL CAPITAL MANAGEMENT
CORP PORTFOLIO (CONTINUED)
PUBLISHING & PRINTING -- 1.96%
32,250 Dun & Bradstreet Corp..................... $ 750,752 $ 765,938
25,700 New York Times............................ 842,877 976,600
----------- -----------
1,593,629 1,742,538
----------- -----------
RETAIL -- 2.86%
37,500 Federated Department Store Inc. *......... 1,133,707 1,279,688
55,200 Wal-Mart Stores Inc....................... 1,393,564 1,262,700
----------- -----------
2,527,271 2,542,388
----------- -----------
TELECOMMUNICATIONS -- 5.51%
42,300 MCI Communications........................ 1,341,049 1,382,681
34,100 NYNEX Corp................................ 1,526,519 1,641,062
51,100 Pacific Telesis Group..................... 1,726,848 1,877,925
----------- -----------
4,594,416 4,901,668
----------- -----------
TOYS -- 1.01%
15,200 Hasbro Inc................................ 542,558 590,900
11,000 Mattel Inc................................ 274,174 305,250
----------- -----------
816,732 896,150
----------- -----------
TRANSPORTATION -- 5.44%
13,000 AMR Corp.................................. 1,097,034 1,145,625
14,650 Burlington Northern Co.................... 1,122,050 1,265,393
39,700 Peninsular & Oriental ADR+................ 793,262 801,542
27,000 Union Pacific Corp........................ 1,267,741 1,623,375
----------- -----------
4,280,087 4,835,935
----------- -----------
TOTAL -- INSTITUTIONAL CAPITAL MANAGEMENT
CORP..................................... 47,139,287 53,287,133
----------- -----------
TOTAL -- COMMON STOCK..................... 75,144,105 84,980,533
----------- -----------
SHORT-TERM INVESTMENTS -- 4.31%
HOTCHKIS & WILEY -- 1.56%
800,000 G.E. Capital Corp. Commercial Paper, 5.25%
due 01/06/97............................. 800,000 800,000
----------- -----------
584,000 American Express Commercial Paper, 5.50%
due 01/02/97............................. 584,000 584,000
----------- -----------
TOTAL -- HOTCHKIS & WILEY................. 1,384,000 1,384,000
----------- -----------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL VALUE
AMOUNT COST (NOTE 2)
--------- ----------- --------
<C> <S> <C> <C>
INSTITUTIONAL CAPITAL MANAGEMENT
CORP -- 2.75%
350,000 Coca-Cola Corp. Commercial Paper, 5.35%
due 01/09/97.......................... $ 349,584 $ 349,584
550,000 Coca-Cola Corp. Commercial Paper, 5.60%
due 01/06/97.......................... 549,572 549,572
500,000 Lucent Technologies Commercial Paper,
5.37% due 01/17/97.................... 498,807 498,807
300,000 Shell Oil Finance Commercial Paper,
5.75% due 01/03/97.................... 299,904 299,904
350,000 Xerox Corp. Commercial Paper, 5.75% due
01/16/97.............................. 349,161 349,161
400,000 Xerox Corp. Commercial Paper, 5.38% due
01/16/97.............................. 399,103 399,103
----------- -----------
TOTAL -- INSTITUTIONAL CAPITAL
MANAGEMENT CORP....................... 2,446,131 2,446,131
----------- -----------
TOTAL -- SHORT-TERM INVESTMENTS --
4.31%................................. 3,830,131 3,830,131
----------- -----------
TOTAL INVESTMENTS --99.86%............. 78,974,236(a) 88,810,664
----------- -----------
CASH AND OTHER ASSETS IN EXCESS OF
LIABILITIES -- .14%................... 122,209
-----------
TOTAL ASSETS --100.00%................. $88,932,873
===========
</TABLE>
- --------
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $10,593,246
Unrealized depreciation (756,818)
-----------
Net unrealized appreciation $ 9,836,428
===========
</TABLE>
* Non-Income Producing Securities.
+ American Depository Receipts.
See accompanying notes to financial statements.
3
<PAGE>
THE HIRTLE CALLAGHAN TRUST
GROWTH EQUITY PORTFOLIO
Portfolio of Investments -- December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2)
------ ---- --------
<C> <S> <C> <C>
COMMON STOCK -- 97.21%
JENNISON ASSOCIATES CAPITAL
CORP. PORTFOLIO -- 51.23%
ADVERTISING -- .58%
16,700 Omnicom Group Inc. ..................... $ 571,174 $ 764,025
------------ ------------
AEROSPACE/DEFENSE -- 1.69%
20,800 Boeing Co. ............................. 1,596,421 2,212,600
------------ ------------
BEVERAGES -- .73%
32,700 Pepsico, Inc. .......................... 931,316 956,475
------------ ------------
BROADCASTING -- .69%
26,900 Infinity Broadcasting................... 789,003 904,513
------------ ------------
COMMERCIAL SERVICES -- 2.37%
17,800 America Online Inc.*.................... 873,863 591,850
46,400 CUC International Inc.*................. 1,037,616 1,102,000
20,800 Manpower Inc. .......................... 748,599 676,000
21,200 Robert Half
International Inc...................... 691,691 728,750
------------ ------------
3,351,769 3,098,600
------------ ------------
COMPUTERS -- 2.10%
13,700 Compaq Computer Corp. .................. 768,139 1,017,225
23,350 Computer Associates International,
Inc. .................................. 936,284 1,161,663
15,600 First Data Corp. ....................... 503,081 569,400
------------ ------------
2,207,504 2,748,288
------------ ------------
COMPUTER EQUIPMENT -- 3.65%
17,600 Dell Computer Corp.*.................... 261,362 935,000
3,900 International Business Machines......... 518,220 588,900
18,300 Microsoft Corp.*........................ 959,430 1,512,038
26,500 Seagate Technology Inc.*................ 754,669 1,046,750
15,500 Symbol Technologies Inc.*............... 602,744 685,875
------------ ------------
3,096,425 4,768,563
------------ ------------
COMPUTER SOFTWARE -- 5.66%
27,500 Cisco Systems, Inc.*.................... 1,049,570 1,749,688
15,000 Compuware Corp.* ....................... 459,682 751,875
23,700 Electronic Data Systems Corp. .......... 1,201,159 1,025,025
21,300 Gartner Group Inc....................... 690,203 829,369
27,100 Intuit*................................. 1,020,525 853,650
45,500 Platinum Technology Inc................. 537,087 619,938
21,500 3COM Corp.*............................. 949,716 1,577,563
------------ ------------
5,907,942 7,407,108
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2)
------ ---- --------
<C> <S> <C> <C>
CONSUMER NON-DURABLES -- .92%
15,400 Gillette Company.......................... $ 821,500 $ 1,197,350
------------ --------------
ELECTRONIC COMPONENTS &
INSTRUMENTS -- 5.69%
33,300 Hewlett Packard Co. ...................... 1,552,574 1,673,325
17,700 KLA Instrument Corp.*..................... 475,507 628,350
17,800 Intel Corp. .............................. 1,193,263 2,330,688
53,100 International Rectifier Corp. ............ 965,863 809,775
25,400 Macromedia Inc............................ 485,424 457,200
16,200 Nokia Corp. ADR+.......................... 639,524 931,500
16,600 Xilinx Inc................................ 592,448 611,088
------------ --------------
5,904,603 7,441,926
------------ --------------
ENERGY EQUIPMENT &
SERVICES -- .74%
9,700 Schlumberger Ltd. ........................ 778,412 968,788
------------ --------------
ENTERTAINMENT -- 1.47%
23,400 The Walt Disney Co. ...................... 1,467,630 1,629,225
------------ --------------
FINANCIAL SERVICES -- 3.54%
19,300 Chase Manhattan Corp. .................... 1,350,793 1,722,525
15,600 Federal National Mortgage Association..... 436,880 581,100
9,900 J.P. Morgan & Co. ........................ 816,550 966,488
83,700 Hibernia Corp. Cl A....................... 877,381 1,109,025
6,100 MBNA Corp................................. 242,014 253,150
------------ --------------
3,723,618 4,632,288
------------ --------------
HEALTH CARE -- 1.84%
20,100 Healthsouth Corp.*........................ 697,432 776,363
16,100 Johnson & Johnson......................... 743,365 800,975
11,600 Unum Corp. ............................... 790,254 838,100
------------ --------------
2,231,051 2,415,438
------------ --------------
INSURANCE -- 1.45%
5,600 Cigna Corp. .............................. 636,870 765,100
20,600 PMI Group................................. 933,225 1,140,725
------------ --------------
1,570,095 1,905,825
------------ --------------
LODGING -- 1.98%
40,400 Hilton Hotels Corp. ...................... 1,064,421 1,055,450
28,900 Interstate Hotels Co...................... 708,077 816,425
24,300 Promus Hotels Corp.*...................... 578,799 719,888
------------ --------------
2,351,297 2,591,763
------------ --------------
PHARMACEUTICALS -- 4.81%
17,100 Astra A Fria - ADR+*...................... 629,046 837,900
9,200 Bristol Myers Squibb...................... 1,004,060 1,000,500
10,400 Chiron Corp.*............................. 240,599 193,700
13,700 Eli Lilly & Co............................ 703,591 1,000,100
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
THE HIRTLE CALLAGHAN TRUST
GROWTH EQUITY PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2)
------ ---- --------
<C> <S> <C> <C>
COMMON STOCK (CONTINUED)
JENNISON ASSOCIATES CAPITAL
CORP. PORTFOLIO (CONTINUED)
PHARMACEUTICALS (CONTINUED)
6,100 Merck & Co.................................. $ 958,620 $ 966,850
15,400 Pfitzer Inc................................. 1,003,105 1,276,275
15,000 Smithkline Beecham
plc - ADR+................................. 778,399 1,020,000
---------- ----------
5,317,420 6,295,325
---------- ----------
PUBLISHING & PRINTING -- 1.15%
19,800 Reuters Holding
plc - ADR+................................. 1,166,145 1,514,700
---------- ----------
RAW MATERIALS -- .71%
9,800 Kimberly Clark Corp......................... 715,627 933,450
---------- ----------
RESTAURANT -- .59%
29,300 Lone Star Steakhouse & Saloon*.............. 927,914 783,775
---------- ----------
RETAIL -- 4.19%
40,400 Autozone, Inc.*............................. 1,104,412 1,111,000
18,400 Corporate Express*.......................... 613,724 541,649
29,025 Dollar General Corp. ....................... 670,845 928,799
19,000 Gap Inc..................................... 564,578 572,374
20,500 Lowe's Companies............................ 718,410 727,750
23,000 Kohl's Corp.*............................... 669,442 902,750
11,800 Nike Inc. .................................. 477,709 705,050
---------- ----------
4,819,120 5,489,372
---------- ----------
TELECOMMUNICATIONS -- 1.84%
27,500 MCI Communications Corp. ................... 752,751 898,905
22,300 Tellabs, Inc.*.............................. 506,339 839,037
16,300 Vodafone Group
plc - ADR+................................. 663,487 674,412
---------- ----------
1,922,577 2,412,354
---------- ----------
TELECOMMUNICATIONS
EQUIPMENT -- .35%
7,500 Ascend Communications Inc................... 344,661 465,938
---------- ----------
TRANSPORTATION -- .77%
35,800 Continental Air
Class B.................................... 1,050,432 1,011,350
---------- ----------
OIL & GAS -- 1.15%
13,500 Amerada Hess Corp. ......................... 793,309 781,312
24,800 Union Pacific Resources Group............... 686,597 725,399
---------- ----------
1,479,906 1,506,711
---------- ----------
UTILITIES -- .57%
25,000 Ericsson (L.M.) Telephone
Spa - ADR+................................. 513,656 754,688
---------- ----------
TOTAL -- JENNISON ASSOCIATES CAPITAL
CORP. ..................................... 55,557,218 66,810,438
---------- ----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2)
------ ---- --------
<C> <S> <C> <C>
WESTFIELD CAPITAL MANAGEMENT
PORTFOLIO -- 45.98%
APPLIANCES AND HOUSEHOLD
DURABLES -- .98%
50,000 Sunbeam Corp. ........................... $ 1,253,000 $ 1,287,500
------------ ------------
AEROSPACE/DEFENSE -- 1.39%
17,200 Boeing Co. .............................. 1,419,346 1,829,650
------------ ------------
BANKING -- 1.23%
6,000 Wells Fargo & Co. ....................... 1,497,287 1,618,500
------------ ------------
COMPUTERS -- .77%
27,650 First Data Corp. ........................ 825,965 1,009,225
------------ ------------
COMPUTER SOFTWARE -- 6.14%
22,000 3COM Corp.*.............................. 937,459 1,614,250
19,900 Cisco Systems Inc........................ 1,079,744 1,266,138
14,000 Computer Sciences Corp.*................. 898,128 1,149,750
49,100 EMC Corp. .............................. 1,212,438 1,626,438
24,000 Parametric Technology Corp. ............ 1,155,876 1,233,000
20,704 Sterling Commerce Inc. .................. 396,615 729,809
13,000 Sterling Software Inc.*.................. 368,165 411,125
------------ ------------
6,048,425 8,030,510
------------ ------------
ELECTRONIC COMPONENTS & INSTRUMENTS -- 5.21%
55,000 Alpha Industries, Inc.*.................. 793,006 433,125
13,500 General Electric Co...................... 1,178,655 1,334,813
60,100 National Semiconductor................... 1,246,751 1,464,938
40,300 Nokia Corp. ADR+......................... 1,791,842 2,317,250
64,000 Westinghouse Electric Corp............... 1,262,310 1,272,000
------------ ------------
6,272,564 6,822,126
------------ ------------
ENERGY EQUIPMENT AND
SERVICES -- .89%
23,000 Microchip Technology Inc................. 1,110,875 1,170,125
------------ ------------
ENGINEERING & CONSTRUCTION -- .81%
17,000 Fluor Corp. ............................. 1,147,167 1,066,750
------------ ------------
FOOD & HOUSEHOLD PRODUCTS -- .51%
30,000 Whole Food Market Inc. .................. 794,915 675,000
------------ ------------
INDUSTRIAL COMPONENTS -- 1.06%
30,000 Corning Inc. ............................ 1,140,550 1,387,500
------------ ------------
INSURANCE -- 1.82%
22,800 ACE Ltd. ................................ 1,235,207 1,370,850
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
THE HIRTLE CALLAGHAN TRUST
GROWTH EQUITY PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2)
------ ---- --------
<C> <S> <C> <C>
COMMON STOCK (CONTINUED)
WESTFIELD CAPITAL MANAGEMENT
PORTFOLIO (CONTINUED)
INSURANCE (CONTINUED)
30,500 Allmerica Financial Corp. .................. $ 803,888 $ 1,021,750
------------ ------------
2,039,095 2,392,600
------------ ------------
LODGING -- 2.01%
47,800 Starwood Lodging Trust...................... 1,735,896 2,634,975
------------ ------------
MANUFACTURING -- 1.51%
37,400 Tyco International.......................... 1,440,173 1,977,525
------------ ------------
MEDICAL BIOTECHNOLOGY -- 2.01%
35,200 Centocor Inc. .............................. 1,244,348 1,258,400
20,300 Medtronic Inc. ............................. 1,061,985 1,380,400
------------ ------------
2,306,333 2,638,800
------------ ------------
MEDICAL MANAGEMENT &
SERVICES -- .84%
26,000 Healthcare Compare Corp.*................... 1,215,910 1,101,750
------------ ------------
MEDICAL SUPPLIES -- 1.47%
20,000 Idexx Laboratories*......................... 825,463 720,000
39,000 Genesis Health Ventures Inc.*............... 858,745 1,213,875
------------ ------------
1,684,208 1,933,875
------------ ------------
OIL & GAS -- 5.92%
26,000 Burlington Resources Inc. .................. 1,156,195 1,309,750
26,000 Halliburton Co. ............................ 1,099,873 1,566,500
79,100 NGC Corp. .................................. 1,187,624 1,839,075
17,000 Pennzoil Co. ............................... 973,998 960,500
29,250 Weatherford International Inc.* ............ 750,721 877,500
16,900 Western Atlas International Inc. ........... 749,690 1,197,788
------------ ------------
5,918,101 7,751,113
------------ ------------
PHARMACEUTICALS -- 1.21%
27,300 Cardinal Health Inc. ....................... 1,327,130 1,590,225
------------ ------------
REAL ESTATE -- 4.81%
50,000 Arden Realty Group Inc. .................... 1,221,249 1,387,499
51,400 Beacon Properties Corp. .................... 1,202,995 1,882,524
50,000 Cali Realty Corp. .......................... 1,240,838 1,543,749
35,000 Reckson Associates Realty Corp. ............ 1,077,046 1,478,749
------------ ------------
4,742,128 6,292,521
------------ ------------
RETAIL - SPECIALTY LINE -- 1.82%
34,500 CVS Corp. .................................. 1,347,250 1,427,438
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL VALUE
AMOUNT COST (NOTE 2)
--------- ---- --------
<C> <S> <C> <C>
RETAIL - SPECIALTY LINE (CONTINUED)
50,400 Zale Corp. .......................... $ 858,056 $ 963,900
------------ ------------
2,205,306 2,391,338
------------ ------------
SERVICES -- 1.07%
50,000 Service Corp. International.......... 1,067,570 1,400,000
------------ ------------
TELECOMMUNICATIONS -- 1.47%
31,300 Cincinnati Bell Inc. ................ 1,799,483 1,928,863
------------ ------------
UTILITIES -- 1.03%
45,000 Ericsson (L.M.) Telephone Spa -
ADR+............................... 1,384,500 1,358,438
------------ ------------
TOTAL -- WESTFIELD CAPITAL
MANAGEMENT.......................... 50,375,927 60,288,909
------------ ------------
TOTAL -- COMMON STOCK................ $105,933,145 $127,099,347
------------ ------------
SHORT-TERM INVESTMENTS -- 2.36%
JENNISON ASSOCIATES
CAPITAL CORP. -- 1.87%
2,450,000 Ford Motor Credit Corp., 5.36%, due
1/2/97.............................. 2,450,000 2,450,000
------------ ------------
WESTFIELD CAPITAL
MANAGEMENT -- .48%
640,000 Bankers Trust Repurchase Agreement
4.25%, due 1/2/97 (Collateralized
by: $650,051 U.S. Treasury Notes,
5.875%, due 11/15/99)............... 640,000 640,000
------------ ------------
TOTAL -- SHORT-TERM INVESTMENTS...... 3,090,000 3,090,000
------------ ------------
TOTAL INVESTMENTS --99.57%........... $109,023,145(a) 130,189,347
============
CASH AND OTHER ASSETS IN EXCESS OF
LIABILITIES -- .43%................. 563,348
------------
TOTAL NET ASSETS --100.00%........... $130,752,695
============
</TABLE>
- --------
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation......................................... $23,194,254
Unrealized depreciation......................................... (2,028,052)
-----------
Net unrealized appreciation..................................... $21,166,202
===========
</TABLE>
*Non-income producing security.
+American Depository Receipts.
See accompanying notes to financial statements.
6
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION PORTFOLIO
Portfolio of Investments -- December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2)
------ ---- --------
<C> <S> <C> <C>
COMMON STOCK -- 92.90%
CLOVER CAPITAL MANAGEMENT PORTFOLIO -- 44.90%
ADVERTISING -- 1.48%
90,000 Advo, Inc. ............................... $ 1,167,530 $ 1,260,000
----------- -----------
BROADCASTING AND PUBLISHING -- 2.07%
100,000 Comcast Corp. CL A........................ 1,836,026 1,762,500
----------- -----------
CHEMICALS -- 0.19%
7,500 Hanna M A Co. ............................ 120,350 164,063
----------- -----------
COMPUTER SOFTWARE -- 1.82%
90,000 Marcam Corp.*............................. 1,087,362 1,170,000
10,000 Sungard Data System, Inc.*................ 283,450 395,000
----------- -----------
1,370,812 1,565,000
----------- -----------
CONSUMER CYCLICAL -- 1.78%
20,000 Designs, Inc.*............................ 160,500 112,500
80,000 Pier 1 Imports, Inc. ..................... 949,663 1,410,000
----------- -----------
1,110,163 1,522,500
----------- -----------
ELECTRONIC COMPONENT AND INSTRUMENTS -- 6.67%
85,000 Amphenol Corp. Cl A*...................... 1,787,441 1,891,250
30,000 Avnet, Inc. .............................. 1,438,414 1,747,500
70,000 Mentor Graphics Corp.*.................... 1,067,788 682,500
35,000 Wyle Electronics.......................... 1,136,845 1,382,500
----------- -----------
5,430,488 5,703,750
----------- -----------
ELECTRICAL AND ELECTRONICS -- 2.42%
50,000 Pioneer Standard Electronics, Inc. ....... 692,900 656,250
31,780 Thomas & Betts Corp. ..................... 856,351 1,410,238
----------- -----------
1,549,251 2,066,488
----------- -----------
ENTERTAINMENT -- 1.73%
40,000 King World Productions, Inc.*............. 1,535,982 1,475,000
----------- -----------
ENVIRONMENTAL -- 1.14%
60,000 Wheelabrator Technologies, Inc.*.......... 878,416 975,000
----------- -----------
FINANCIAL -- 1.99%
75,000 Frontier Corp............................. 1,532,798 1,696,875
----------- -----------
FOOD - PROCESSING -- 2.93%
40,000 Interstate Bakeries, Corp................. 834,488 1,965,000
150,000 United Biscuits Holdings - ADR+........... 669,000 538,500
----------- -----------
1,503,488 2,503,500
----------- -----------
HOSPITAL MANAGEMENT & SERVICES -- 3.75%
130,000 Medpartners, Inc.*........................ 2,503,961 2,730,000
12,000 Salick Healthcare, Inc.*.................. 438,000 480,000
----------- -----------
2,941,961 3,210,000
----------- -----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2)
------ ---- --------
<C> <S> <C> <C>
INSURANCE -- 0.73%
16,000 Liberty Financial Companies............ $ 568,800 $ 622,000
----------- -----------
MANUFACTURING HOUSING -- 0.18%
25,000 Stimsonite Corp.*...................... 229,375 153,125
----------- -----------
MANUFACTURING HOUSING -- 1.64%
55,000 Pall Corp.............................. 1,328,510 1,402,500
----------- -----------
OIL/GAS - EXPLORATION -- 1.57%
60,000 Union Texas Petroleum Holdings, Inc. .. 1,106,100 1,342,500
----------- -----------
PHARMACEUTICALS -- 0.73%
40,000 Carter-Wallace, Inc. .................. 562,000 625,000
----------- -----------
PUBLISHING & PRINTING -- 0.65%
20,000 American Greetings Corp. Cl A.......... 603,511 567,500
----------- -----------
REAL ESTATE INVESTMENT TRUST -- 4.10%
30,000 Manufactured Home Communities, Inc. ... 512,000 697,500
8,500 Meditrust Corp. ....................... 287,476 340,000
7,500 Public Storage Management, Inc.*....... 229,483 390,937
26,000 ROC Communities, Inc................... 598,425 721,500
50,000 Storage Trust Realty................... 1,054,700 1,350,000
----------- -----------
2,682,084 3,499,937
----------- -----------
RETAIL -- 1.32%
50,000 Cash America International, Inc. ...... 351,925 425,000
17,000 CVS Corp. ............................. 510,446 703,375
----------- -----------
862,371 1,128,375
----------- -----------
STORAGE -- 0.81%
22,000 Sovran Self Storage, Inc. ............. 544,675 687,500
----------- -----------
TELECOMMUNICATIONS -- 0.87%
50,000 California Microwave, Inc.*............ 1,161,812 743,750
----------- -----------
TOBACCO -- 1.59%
40,000 RJR Nabisco Holding Corp. ............. 1,299,564 1,360,000
----------- -----------
TRANSPORTATION - RAIL -- 2.00%
45,000 Canadian National Railway Co. ......... 1,099,628 1,710,000
----------- -----------
UTILITIES - ELECTRICAL -- 0.67%
20,000 Sierra Pacific Resources............... 438,362 575,000
----------- -----------
TOTAL -- CLOVER CAPITAL MANAGEMENT
PORTFOLIO............................. 33,464,057 38,321,863
----------- -----------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2)
------ ---- --------
<C> <S> <C> <C>
COMMON STOCK (CONTINUED)
FRONTIER CAPITAL MANAGEMENT PORTFOLIO -- 47.99%
AEROSPACE/DEFENSE -- 2.24%
43,800 Aeroflex, Inc.*........................... $ 197,753 $ 208,050
60,800 Banner Aerospace, Inc.*................... 319,622 524,400
19,130 Be Aerospace, Inc.*....................... 194,821 518,901
5,700 Precision Castparts Corp. ................ 199,480 282,863
31,100 UNC Resources, Inc.*...................... 215,825 373,200
----------- -----------
1,127,501 1,907,414
----------- -----------
BUILDING MATERIALS & COMPONENTS -- 0.85%
20,000 Elcor Corp. .............................. 391,000 427,500
38,100 Perini Corp.*............................. 388,440 297,656
----------- -----------
779,440 725,156
----------- -----------
BROADCASTING -- 0.33%
5,200 Cablevision System Corp.*................. 253,105 159,250
12,000 Jones Intercable, Inc.
Cl A*.................................... 148,375 124,500
----------- -----------
401,480 283,750
----------- -----------
CHEMICALS -- 2.05%
20,000 AG Services of America, Inc.*............. 225,995 332,500
17,100 General Chemical Group, Inc. ............. 300,063 403,988
36,100 Hexcel Corp.*............................. 417,857 586,625
12,800 Spartech Corp............................. 118,400 142,400
16,700 Wellman, Inc. ............................ 300,285 285,988
----------- -----------
1,362,600 1,751,501
----------- -----------
COMMERCIAL SERVICES -- 0.75%
4,200 Fine Host Corp.*.......................... 61,950 80,850
19,200 Lason, Inc.*.............................. 360,670 393,600
16,800 Protection One, Inc.*..................... 179,932 165,900
----------- -----------
602,552 640,350
----------- -----------
COMPUTER EQUIPMENT -- 5.90%
9,200 Converse Technology, Inc.................. 178,819 347,875
73,900 ISG International Software Corp.*......... 575,230 2,050,725
26,800 Learning Company, Inc.*................... 500,595 385,250
10,700 Network General Corp.*.................... 191,623 323,675
8,968 Seagate Techology, Inc.*.................. 201,024 354,236
38,100 Sigma Designs, Inc.*...................... 336,295 400,050
29,700 State of The Art, Inc.*................... 347,341 367,538
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2)
------ ---- --------
<C> <S> <C> <C>
COMPUTER EQUIPMENT (CONTINUED)
14,200 Western Digital Corp.*.................... $ 262,842 $ 807,625
----------- -----------
2,613,769 5,036,974
----------- -----------
COMPUTER SOFTWARE -- 2.75%
8,500 Compuware Corp.*.......................... 213,000 426,063
31,600 Evans & Sutherland Computer Corp.*........ 709,088 790,000
25,400 Level 8 Systems Inc.*..................... 282,001 393,700
27,100 Peak Technologies Group, Inc.*............ 318,188 325,200
15,700 Tecnomatix Technologies, Inc.*............ 288,888 416,050
----------- -----------
1,811,165 2,351,013
----------- -----------
ELECTRICAL AND ELECTRONICS -- 2.36%
9,700 Cirrus Logic, Inc.*....................... 268,734 150,350
42,000 Encore Wire Corp.*........................ 452,105 724,500
5,400 Harman International Industries, Inc. .... 203,388 300,375
8,700 Oak Industries, Inc.*..................... 216,935 200,100
10,100 Rogers Corp.*............................. 238,677 273,963
65,000 Spectrum Control, Inc.*................... 325,199 219,375
12,300 Trimble Navigation Ltd.*.................. 210,098 141,450
----------- -----------
1,915,136 2,010,113
----------- -----------
ELECTRONIC COMPONENTS & INSTRUMENTS -- 4.71%
46,400 Aavid Thermal Technologies, Inc.*......... 351,450 498,800
18,600 Allen Group, Inc.*........................ 331,138 413,850
19,800 Alpha Industries, Inc.*................... 223,982 155,925
15,700 Amphenol Corp.
Cl. A*................................... 372,265 349,325
13,900 DII Group, Inc.*.......................... 344,616 323,175
24,600 Invivo Corp.*............................. 324,632 319,800
10,400 Lattice Semiconductor Corp.*.............. 255,623 478,400
6,700 Maxim Integrated Products, Inc.*.......... 220,594 289,775
5,700 Nokia Corp.
Cl A ADR+................................ 224,836 327,750
25,500 Semiconductor Packaging Materials*........ 249,358 277,313
19,050 TSX Corp.*................................ 241,729 169,069
17,600 VLSI Technology, Inc.*.................... 294,994 420,200
----------- -----------
3,435,217 4,023,382
----------- -----------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2)
------ ---- --------
<C> <S> <C> <C>
COMMON STOCK (CONTINUED)
FRONTIER CAPITAL MANAGEMENT PORTFOLIO (CONTINUED)
ENERGY EQUIPMENT AND SERVICES -- 0.49%
8,200 Microchip Technology, Inc.*............ $ 171,865 $ 417,175
----------- -----------
ENGINEERING AND CONSTRUCTION -- 1.16%
56,300 Insituform Techologies Cl A*........... 541,594 415,213
14,900 Jacobs Engineeing Group, Inc.*......... 340,811 352,013
10,000 J Ray McDermott SA*.................... 192,451 220,000
----------- -----------
1,074,856 987,226
----------- -----------
ENTERTAINMENT -- 0.42%
20,000 Lodgenet, Inc.*........................ 250,597 355,000
----------- -----------
ENVIRONMENTAL -- 0.16%
8,200 Safety Kleen Corp...................... 131,692 134,275
----------- -----------
FINANCIAL SERVICES -- 0.34%
8,400 Long Island Bancorp.................... 214,769 294,000
----------- -----------
FOREST PRODUCTS & PAPER -- 0.43%
17,500 Louisiana-Pacific Corp................. 377,106 369,688
----------- -----------
INSURANCE -- 2.20%
15,500 American Annuity Group, Inc. .......... 186,930 218,938
13,900 Conseco, Inc. ......................... 419,995 886,125
18,300 John Alden Financial Corp. ............ 367,632 338,550
4,800 Mid Ocean Ltd. ........................ 181,349 252,000
9,900 Nymagic, Inc. ......................... 180,775 178,200
----------- -----------
1,336,681 1,873,813
----------- -----------
LEISURE AND TOURISM -- 0.56%
16,200 International Game Technology.......... 266,409 295,650
46,000 Topps Company, Inc.*................... 289,230 184,000
----------- -----------
555,639 479,650
----------- -----------
MACHINERY & ENGINEERING -- 0.97%
18,700 Brown & Sharpe Manufacturing Co. Class
A*.................................... 224,101 261,800
31,600 Pfeiffer Vacuum Technology*............ 363,400 578,800
----------- -----------
587,501 830,600
----------- -----------
MEDICAL SUPPLIES -- 0.73%
17,900 CNS Inc.*.............................. 271,369 257,313
34,800 Dusa Pharmaceuticals Inc.*............. 210,540 243,600
18,400 Uroquest Medical Corp.*................ 109,650 124,200
----------- -----------
591,559 625,113
----------- -----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2)
------ ---- --------
<C> <S> <C> <C>
MEDICAL - HOSPITAL MANAGEMENT & SERVICES -- 0.86%
32,500 America Service Group, Inc.*.............. $ 362,053 $ 333,125
17,200 Neoprobe Corp.*........................... 270,051 264,450
5,300 United Wisconsin Services, Inc. .......... 115,502 139,125
----------- -----------
747,606 736,700
----------- -----------
OIL & GAS -- 2.78%
16,100 American Exploration Co.*................. 231,227 257,600
8,000 Curbo Ceramics, Inc. ..................... 152,000 168,000
40,700 Coho Energy, Inc.*........................ 282,513 289,988
15,340 Geoscience Corp.*......................... 193,380 199,420
6,700 Louisiana Land & Exploration.............. 289,494 359,288
7,700 Noble Drilling Corp.*..................... 100,459 153,038
10,200 Oryx Energy Co.*.......................... 137,991 252,450
6,000 Production Operators Corp. ............... 189,287 279,000
21,100 Wiser Oil Co. ............................ 298,871 416,725
----------- -----------
1,875,222 2,375,509
----------- -----------
PACKAGING/CONTAINER -- 0.67%
34,000 U.S. Can Corp.*........................... 489,897 573,750
----------- -----------
PHARMACEUTICALS -- 0.68%
30,000 Anesta Corp.*............................. 392,800 577,500
----------- -----------
PUBLISHING & PRINT -- 1.42%
30,800 International Imaging Materials, Inc.*.... 688,333 700,699
19,100 Scientific Games Holdings Corp.*.......... 551,682 510,924
----------- -----------
1,240,015 1,211,623
----------- -----------
REAL ESTATE -- 1.05%
44,800 Commercial Real Estate Services*.......... 872,300 896,000
----------- -----------
SHIPBUILDING -- 0.13%
8,000 Halter Marine Group, Inc.*................ 88,000 110,000
----------- -----------
STEEL -- 1.40%
12,000 Birmingham Steel Corp. ................... 190,774 228,000
10,600 Carpenter Technology Corp. ............... 389,276 388,225
6,500 Lukens, Inc. ............................. 138,048 130,813
26,800 Oregon Steel Mills, Inc. ................. 342,348 448,900
----------- -----------
1,060,446 1,195,938
----------- -----------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2)
------ ---- --------
<C> <S> <C> <C>
COMMON STOCK (CONTINUED)
FRONTIER CAPITAL MANAGEMENT PORTFOLIO (CONTINUED)
TELECOMMUNICATION EQUIPMENT -- 1.15%
9,460 ADC
Telecommunication,
Inc.*.................................... $ 179,820 $ 294,443
18,600 Boston Technology, Inc.*.................. 253,352 534,750
14,400 Microwave Power Devise, Inc.*............. 94,169 39,600
13,300 Summa Four, Inc.*......................... 169,576 111,388
----------- -----------
696,917 980,181
----------- -----------
TELECOMMUNICATIONS -- 1.97%
7,500 Anadigics, Inc.*.......................... 200,625 294,375
26,530 Arch Communications Group*................ 606,204 248,718
13,760 Natural Microsystems Corp.*............... 179,506 433,439
7,100 Qualcomm, Inc.*........................... 233,417 283,112
17,200 Transaction Network Services*............. 191,986 197,799
16,300 Western Wireless Corp. Class A*........... 215,975 226,163
----------- -----------
1,627,713 1,683,606
----------- -----------
TEXTILES AND APPAREL -- 1.10%
23,300 Fieldcrest Cannon Inc.*................... 321,463 372,800
76,900 Oneita Industries, Inc.*.................. 305,735 134,575
34,200 Sport-Haley, Inc.*........................ 368,934 429,638
----------- -----------
996,132 937,013
----------- -----------
TOYS -- 0.99%
24,000 Galoob (Lewis) Toys Inc.* ................ 445,833 336,000
26,300 Toy Biz*.................................. 448,952 512,850
----------- -----------
894,785 848,850
----------- -----------
TRANSPORTATION -- 2.26%
4,400 Alaska Airgroup, Inc.*.................... 107,954 92,399
14,000 America West Airlines B*.................. 247,345 222,249
23,300 Mesaba Holdings, Inc.*.................... 190,580 346,587
47,000 OMI Corp.*................................ 330,036 411,249
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL VALUE
AMOUNT COST (NOTE 2)
--------- ---- --------
<C> <S> <C> <C>
TRANSPORTATION (CONTINUED)
5,100 Overseas Shipholding Group............... $ 105,678 $ 86,699
14,500 Teekay Shipping Corp.*................... 368,267 474,874
14,600 World Airways*........................... 144,676 118,625
40,200 Worldcorp, Inc.*......................... 404,431 175,875
----------- -----------
1,898,967 1,928,557
----------- -----------
UTILITIES - ELECTRICAL -- 0.55%
13,900 Calenergy Company, Inc.*................. 294,702 467,388
----------- -----------
WHOLESALE SPECIAL LINE -- 1.57%
21,200 Cameron Ashley Building Products*........ 219,075 296,800
18,800 Central Garden & Pet Co.* ............... 148,975 395,975
41,900 Sodak Gaming, Inc.*...................... 594,021 644,213
----------- -----------
962,071 1,336,988
----------- -----------
TOTAL -- FRONTIER CAPITAL MANAGEMENT
PORTFOLIO............................... 33,478,698 40,955,796
----------- -----------
TOTAL -- COMMON STOCK.................... 66,942,755 79,277,658
----------- -----------
CORPORATE BOND -- 0.64%
CLOVER CAPITAL MANAGEMENT, INC.
500,000 Meditrust Corp. 7.50% 03/01/01 .......... 508,949 548,750
----------- -----------
TOTAL CORPORATE BOND .................... 508,949 548,750
----------- -----------
REPURCHASE AGREEMENTS -- 6.40%
CLOVER CAPITAL MANAGEMENT, INC. -- 2.53%
2,163,155 Bankers Trust Co. Repurchase Agreement
3.90%, 1/02/97 (Collateralized by
$2,197,126 U.S. Treasury Notes, 5.875%
due 11/15/99)........................... 2,163,155 2,163,155
----------- -----------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL VALUE
AMOUNT COST (NOTE 2)
--------- ---- --------
<C> <S> <C> <C>
FRONTIER CAPITAL MANAGEMENT CO. -- 3.87%
3,300,000 Bankers Trust Co. Repurchase Agreement
3.90%, 1/02/97 (Collateralized by
$3,351,824 U.S. Treasury Notes,
5.875% due 11/15/99)................. $ 3,300,000 $ 3,300,000
----------- -----------
TOTAL REPURCHASE AGREEMENT............ 5,463,155 5,463,155
----------- -----------
TOTAL INVESTMENTS -- 99.94%........... $72,914,859(a) 85,289,563
===========
CASH AND OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.06%................. 51,382
-----------
TOTAL NET ASSETS -- 100.00%........... $85,340,945
===========
</TABLE>
- --------
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation......................................... $15,925,571
Unrealized deprecation.......................................... (3,550,867)
-----------
Net unrealized appreciation..................................... $12,374,704
===========
</TABLE>
+ American Depository Receipts.
* Non-income producing security.
See accompanying notes to financial statements.
11
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments -- December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS -- 93.15%
AUSTRALIA -- 4.63%
33,000 Amcor Ltd.
(Forest Products).......................... $ 237,392 $ 212,001
51,900 Boral Limited
(Building & Materials)..................... 135,535 147,545
77,600 Broken Hill Proprietary Co. Ltd.
(Metals - Diversified)..................... 1,084,124 1,104,269
27,050 Cra Limited (Mining)........................ 400,580 424,238
119,000 David Jones Limited
(Retail Store)*............................ 174,738 165,371
7,491 Lend Lease Corp. Ltd.
(Real Estate).............................. 120,076 145,146
113,440 M.I.M. Holdings Ltd. (Mining)............... 146,870 158,546
44,200 National Australia Bank Ltd. (Financial).... 397,861 519,468
21,000 News Corp.
(Publishing & Printing).................... 92,774 93,386
93,097 News Corp. Ltd. Pfd.
(Publishing & Printing).................... 504,162 490,884
54,800 Pacific Dunlop Ltd.
(Holding Company).......................... 121,298 139,253
71,449 Qantas Airways Ltd. (Transportation)........ 118,002 119,149
52,200 Santos Ltd. (Oil & Gas)..................... 170,403 211,405
81,200 Westpac Bank Corp. (Financial).............. 348,053 461,684
58,000 Woolworths Limited
(Food - Retail)............................ 143,376 139,556
39,000 WMC Limited
(Metals - Diversified)..................... 260,514 245,592
----------- ------------
4,455,758 4,777,493
----------- ------------
BELGIUM -- 3.12%
2,900 Delhaize Freres NPV
(Retail - Grocery)......................... 122,200 171,859
2,460 Electrabel NPV (Utilities).................. 547,169 580,816
2,326 Fortis AG NPV (Insurance)................... 282,972 366,949
500 Generale De Banque
(Financial Services)....................... 180,678 178,807
1,370 Groupe Bruxells Lambert NPV
(Financial Services)....................... 175,927 175,945
1,180 Kredietbank NPV (Financial)................. 310,785 385,815
1,210 Petrofina S.A. NPV
(Oil & Gas)................................ 358,884 384,212
</TABLE>
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
BELGIUM (CONTINUED)
2,220 Societe Generale de Belique Paris (Multi-
Industries)............................... $ 169,781 $ 173,786
490 Solvay S.A. (Chemical)..................... 277,440 299,240
650 Tractebel NPV
(Multi-Industries)........................ 255,467 301,929
2,870 Union Miniere NPV (Mining)*................ 203,568 193,992
----------- ------------
2,884,871 3,213,350
----------- ------------
CANADA -- 2.67%
5,900 Alcan Aluminum Ltd. (Metals -
Diversified)............................. 194,441 199,034
3,300 BCE Inc.
(Telecom Services)........................ 140,547 152,845
5,400 Bank of Montreal (Financial)............... 128,904 171,729
3,600 Barrick Gold Corp. (Mining)................ 94,028 103,063
4,100 Canadian National Railway Co.
(Transportation).......................... 126,630 155,806
13,500 Canadian Pacific Ltd.
(Holding Company)......................... 250,132 354,978
5,200 Hudson's Bay Co.
(Retail - Department Stores).............. 88,773 86,856
4,900 Imperial Oil LTD
(Oil & Gas)............................... 188,380 230,525
5,300 Moore Corp. Ltd.
(Business Equipment)...................... 98,638 109,788
6,200 Noranda Inc.
(Metals - Diversified).................... 132,030 138,154
2,000 Northern Telecom Ltd.
(Telecommunications)...................... 95,676 124,289
9,300 Nova Corp of Alberta (Utilities)........... 81,692 82,418
6,000 Royal Bank of Canada (Financial)........... 144,853 210,503
5,200 Seagram Co. Ltd.
(Wine & Spirits).......................... 184,837 205,763
13,200 Thompson Corp.
(Publishing & Printing)................... 195,462 291,247
8,000 Trans Canada Pipeline (Utilities).......... 113,225 140,044
----------- ------------
2,258,248 2,757,042
----------- ------------
FINLAND -- 1.43%
51,700 Merita Ltd. (Banking)*..................... 124,758 160,371
12,200 Nokia (Telecommunications)................. 489,548 706,066
7,100 Outokumpu
(Metals - Steel).......................... 128,096 120,900
2,900 Pohjola Insurance Co. (Insurance).......... 62,374 65,109
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
FINLAND (CONTINUED)
1,800 Sampo Insurance Co. (Insurance)............ $ 119,773 $ 141,735
13,600 UPM - Kymmene Corp. (Paper Products)....... 289,093 284,685
----------- ------------
1,213,642 1,478,866
----------- ------------
FRANCE -- 9.41%
2,548 Accor Ltd.
(Leisure & Tourism)....................... 326,696 320,285
3,372 Alcatel Alsthom (Telecommunications)....... 315,271 268,898
1,600 AXA Sa. (Insurance)........................ 92,536 101,020
12,610 Banque National de Paris Cl. A
(Financial)............................... 509,071 484,453
1,088 CEP Communications (Broadcasting).......... 8,954 1,239
988 CEP Communications Warrants Exp. 12/31/97
(Broadcasting)*........................... 89,082 69,279
2,999 Cie Bancaire SA
(Financial Services)...................... 319,071 352,304
4,310 Cie de Saint Gobain (Building Materials)... 549,518 605,265
790 Colas (Construction)....................... 143,315 113,360
5,718 Compagnie de Suez (Financial Services)..... 239,908 241,339
5,880 Credit Local de France (Financial
Services)................................. 491,954 508,497
820 Gan (Insurance)*........................... 22,695 16,473
6,290 Generale des Eaux (Utilities).............. 671,115 773,809
1,100 Group Denome (Food)........................ 170,216 152,161
2,790 LVMH Moet Hennessey -Louis Vuitton
(Wine & Spirits).......................... 580,037 773,473
2,700 Lafarge SA
(Building Materials)...................... 164,745 160,811
500 L'Oreal (Cosmetics)........................ 158,235 186,924
7,261 Michelin Cl. B
(Tire & Rubber)........................... 328,151 389,118
6,406 Pechiney Cert D'Invest (Metals)............ 298,841 266,452
6,050 Peugeot S.A.
(Auto Related)............................ 793,068 675,991
14,800 Rhone-Poulenc Ord. (Pharmaceuticals)....... 391,402 500,913
5,300 Seita (Tobacco)............................ 208,994 220,042
5,064 Societe Generale (Financial)............... 551,155 543,536
6,414 Societe Nationale Elf Acquitaine (Oil &
Gas)...................................... 482,360 579,588
</TABLE>
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
FRANCE (CONTINUED)
9,167 Total Co. Cl. B
(Oil & Gas)............................... $ 613,665 $ 740,136
10,298 UAP (Insurance)............................ 232,144 255,150
27,800 Usiminas Sacilor (Metals).................. 404,339 401,573
----------- ------------
9,156,538 9,702,089
----------- ------------
GERMANY -- 7.42%
376 Allianz AG Holding (Insurance)**........... 692,326 681,954
10,070 BASF AG (Chemical)......................... 265,125 386,675
13,690 Bayer AG (Chemical)........................ 425,297 556,893
525 Bayerische Motoren Werke AG (Auto
Related).................................. 306,630 364,895
10,770 Commerzbank AG (Banking)................... 239,800 272,773
5,750 Daimler Benz AG
(Auto Related)*........................... 308,655 394,805
10,333 Deutsche Bank AG (Financial)............... 486,502 481,243
17,450 Deutsche Telekon AG (Telecommunications)... 369,092 366,791
4,450 Henkel KGAA Vorzug (Chemicals)............. 220,428 222,817
4,770 Hoechst AG (Chemicals)..................... 138,464 224,627
3,000 Hochtief AG
(Building Materials)...................... 134,689 118,539
730 Man AG (Machinery
& Engineering)............................ 193,705 176,376
973 Mannesmann AG (Machinery & Engineering).... 345,113 420,385
3,112 Metro AG (Retail - Department Stores)...... 267,936 249,960
179 Muenchener Rueckver AG (Insurance)......... 361,095 445,819
1,171 Preussag AG
(Holding Company)......................... 315,271 264,344
7,450 RWE AG (Oil & Gas)......................... 287,170 314,639
4,758 Schering AG (Pharmaceuticals).............. 370,292 400,353
3,550 Siemens AG (Manufacturing)................. 194,271 166,716
1,850 Thyssen AG (Steel)......................... 350,216 327,147
8,632 Veba AG (Utilities)........................ 394,245 497,634
750 Volkswagon AG
(Auto Related)............................ 295,509 310,921
----------- ------------
6,961,831 7,646,306
----------- ------------
HONG KONG -- 1.43%
14,000 Cheung Kong Holdings (Real Estate)......... 99,156 124,482
31,000 China Light & Power (Electric -
Distribution)............................ 133,174 137,920
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
HONG KONG (CONTINUED)
19,000 Gouco Group Ltd.
(Financial Services)...................... $ 93,340 $ 106,402
12,700 Hang Seng Bank (Banking)................... 134,748 154,397
54,000 Hong Kong Telecommunications (Telecom
Services)................................. 90,421 86,950
34,000 Hutchison Whampoa (Diversified
Operations)............................... 218,021 267,137
22,000 New World Development (Transportation -
Marine)................................... 114,728 148,668
11,000 Sun Hung Kai Properties (Real Estate)...... 114,603 134,798
18,000 Swire Pacific Ltd. "A' (Airlines).......... 162,127 171,689
28,000 Wharf Holdings (Real Estate)............... 112,382 139,783
----------- ------------
1,272,700 1,472,226
----------- ------------
ITALY -- 2.99%
17,510 Assic Generali (Insurance)**............... 376,005 332,505
28,000 Daniele Di Risp (Engineering).............. 99,393 117,437
18,000 Edison SPA (Utilities)..................... 94,824 114,135
5,900 Eni Ads - ADR+
(Oil & Gas)............................... 193,992 304,588
49,000 Ente Nazionale Idrocarburi (Oil)........... 234,056 251,958
117,000 Fiat Spa (Auto Related).................... 233,958 193,583
40,000 Instituto Mobiliare Italiano Spa (Financial
Services)................................. 264,662 343,461
63,000 Instituto Nazionale D Assicurazi
(Insurance)............................... 84,970 82,225
21,000 Italgas (Utilities)........................ 58,922 87,870
11,000 Mediobanca Spa
(Financial Services)**.................... 71,681 59,468
358,740 Montedison Spa
(Multi-Industries)*....................... 257,876 245,005
15,000 Rinascente (Retail -Department Store)...... 89,153 87,186
23,000 Rinascente Savings (Retail - Department
Store).................................... 57,937 58,943
1,400 Rinascente Savings -Warrants Exp 12/31/99
(Retail - Department Store)*.............. 595 619
25,000 Sai Risp (Insurance)....................... 102,510 89,085
</TABLE>
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
ITALY (CONTINUED)
220,000 Telecom Italia Mobile
de Risp (Telecommunications).............. $ 247,330 $ 314,597
203,000 Telecom Italia de Risp
(Telecommunications)...................... 295,127 396,882
----------- ------------
2,762,991 3,079,547
----------- ------------
JAPAN -- 25.09%
47,000 Amada
(Hand/Machine Tools)...................... 488,760 364,812
56,000 Asahi Glass Co.
(Building Materials)...................... 630,243 526,434
40,000 Canon, Inc.
(Business Equipment)...................... 742,584 883,139
16,500 Canon Sales
(Business & Public Services).............. 390,896 367,141
41,000 Citizen Watch Co. (Jewelry)................ 322,056 293,489
41,000 Dai Nippon Printing (Publishing &
Printing)................................. 694,070 717,809
29,000 Daiichi Pharmaceutical
Co. LTD
(Pharmaceutical).......................... 438,214 465,201
46,000 Daikin Kogyo Co.
(Machinery &
Engineering).............................. 436,036 408,624
22,000 Daiwa House Industries
(Manufacturing/Housing)................... 334,994 282,708
29,000 Denso Corp. (Auto Parts)................... 554,201 697,801
18,600 Fanuc Co.
(Electronic Components)................... 772,364 595,136
26,000 Fujitsu
(Computer Equipment)...................... 276,613 242,173
89,000 Hitachi Ltd.
(Electrical & Electronics)................ 913,073 828,978
13,000 Honda Motor Co.
(Auto Related)............................ 274,369 371,108
58,000 Inax (Building Materials).................. 556,782 429,185
14,000 Isetan
(Retail - Department Store)............... 201,864 181,113
16,000 Ito-Yokado Co.
(Retail - Grocery)........................ 885,980 695,472
23,000 Kaneka Corp. (Chemicals)................... 147,306 117,628
49,000 Keio Teito Electric Railway
(Transportation).......................... 286,992 239,189
50,000 Kintetsu
(Kinki Nippon Railway)
(Transportation).......................... 381,976 311,772
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
JAPAN (CONTINUED)
50,000 Kirin Brewery Co. Ltd. (Brewery)........... $ 579,723 $ 491,591
9,000 Kokuyo (Office/Business)................... 224,452 221,992
41,000 Kuraray Co. Ltd. (Chemicals)............... 433,697 378,353
4,000 Kyocera Corp. (Electronic)................. 273,881 249,073
10,000 Maeda Road Construction (Construction &
Engineering).............................. 186,129 115,567
72,000 Matsushita Electric Co. (Electronic
Components)............................... 1,181,507 1,173,609
55,000 Mitsubishi Paper Mills (Forest Products &
Paper).................................... 325,173 214,877
74,000 NGK Insulators
(Industrial Components)................... 732,757 702,027
4,300 Nintendo (Toys)............................ 293,593 307,434
28,000 Nippon Meat Packers
(Food Processing)......................... 390,661 362,225
32,000 Nippon Steel Corp. (Steel)................. 105,195 94,386
47,000 Okumura (Construction)..................... 390,107 285,364
187,000 Osaka Gas Corp. (Utilities)................ 644,092 511,246
34,000 Sankyo Pharmaceutical (Pharmaceuticals).... 790,443 961,794
24,000 Sanwa Bank (Banking)....................... 431,220 327,038
10,000 Secom Co.
(Business &
Public Services).......................... 640,060 604,571
17,000 Seino Transport
(Trucking & Leasing)...................... 269,967 187,667
87,000 Sekisui House (Manufacturing/Housing)...... 1,052,579 885,382
42,000 Shinmaywa Industries
(Auto Related)............................ 376,305 308,978
13,700 Sony Corp.
(Electrical &
Electronics).............................. 784,525 896,792
37,000 Sumitomo Electric
(Metal Fabricate/
Hardware)................................. 477,745 516,947
48,000 Sumitomo Trust & Banking (Financial)....... 906,677 691,332
33,000 Takeda Chemical Industries
(Pharmaceuticals)......................... 494,525 691,591
8,000 TDK Corp.
(Electrical &
Electronics).............................. 430,295 520,914
</TABLE>
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
JAPAN (CONTINUED)
42,200 The Bank of Tokyo-Mitsubishi, Ltd.
(Financial - Bank)........................ $ 868,313 $ 782,492
41,000 Tokio Marine & Fire (Insurance)............ 483,919 385,425
20,200 Tokyo Electric Power (Utilities)........... 522,375 442,501
34,000 Tokyo Steel (Steel)........................ 646,189 483,829
31,000 Tonen Corp. (Oil & Gas).................... 458,169 360,931
178,000 Toray Industries Inc. (Chemical)........... 1,142,344 1,097,629
107,000 Toshiba Corp.
(Electrical &
Electronics).............................. 779,746 671,807
26,000 Toyo Suisan Kaisha
(Food Processing)......................... 270,367 260,113
11,000 Toyota Motor Corp.
(Auto Related)............................ 228,518 315,913
22,000 Yamazaki Baking Co., Ltd. (Food
Processing)............................... 397,853 351,013
----------- ------------
27,942,474 25,871,315
----------- ------------
MALAYSIA -- 1.23%
23,000 Hume Industries
(Building Materials)...................... 115,484 144,866
41,000 Kuala Lumpur
(Misc - Materials)........................ 92,171 103,945
42,000 Land & General Holdings (Forest Products &
Paper).................................... 103,747 100,658
8,000 Malayan Banking (Financial)................ 77,347 88,734
30,000 Malaysia International Shipping
(Transportation).......................... 90,300 89,130
4,000 Nestle Malaysia
(Food Processing)......................... 32,267 32,166
39,000 Public Bank BHD (Financial)................ 80,542 82,653
18,000 Resorts World Berhad (Entertainment)....... 104,069 82,000
38,000 Sime Darby Berhad
(Holding Company)......................... 103,962 149,778
14,000 Telecom Malaysia (Telecommunications)...... 126,689 124,782
45,000 Tenaga Nasional (Utilities)................ 187,970 215,695
9,000 YTL Corporation Berhad (Construction)...... 45,396 48,487
----------- ------------
1,159,944 1,262,894
----------- ------------
NETHERLANDS -- 5.95%
7,895 ABN-Amro Holdings NV (Financial)........... 341,360 512,739
1,100 Akzo Nobel (Chemicals)..................... 129,505 149,997
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
NETHERLANDS (CONTINUED)
2,220 DSM NV (Chemical).......................... $ 194,363 $ 218,575
2,800 Hoogovens & Staalf (Steel)................. 107,628 116,485
21,071 International Nederlanden Group
(Financial)............................... 521,072 757,275
4,600 KLM-Konin Luchvaart (Airlines)............. 125,608 129,173
13,024 Koninklijke NV (Telecommunications)........ 461,885 495,916
6,550 Philips Electronics (Electronic
Components)............................... 273,426 264,922
2,100 Royal Dutch Petroleum -ADR+ (Oil & Gas).... 1,347,564 1,779,912
10,170 Royal Dutch Petroleum
(Oil & Gas)............................... 271,558 358,575
4,460 Unilever NV
(Food Processing)......................... 587,504 787,529
7,656 Vendex International N.V. (Retail)......... 269,986 326,907
11,600 Verenigde Ned Uitgev
Ver Bezit
(Publishing & Printing)................... 182,384 241,960
----------- ------------
4,813,843 6,139,965
----------- ------------
NEW ZEALAND -- 3.27%
584,900 Brierly Investment Co. (Multi-Industries).. 496,236 541,717
201,400 Carter Holt Harvey (Forest Products &
Paper).................................... 452,855 457,071
133,400 Fletcher Challenge Paper Ltd. (Forest
Products & Paper)**....................... 242,502 274,453
73,700 Fletcher Challenge Energy Ltd. (Oil &
Gas)**.................................... 204,439 213,634
68,700 Fletcher Challenge Building Ltd. (Building
& Materials)**............................ 198,265 211,283
132,917 Fletcher Forestry (Forest Products &
Paper).................................... 214,107 222,715
3,100 New Zealand Telecom -ADR+
(Telecommunications)...................... 192,345 251,100
234,800 Telecom Corp of New Zealand
(Telecommunications)...................... 1,045,880 1,198,546
----------- ------------
3,046,629 3,370,519
----------- ------------
SINGAPORE -- 0.06%
9,600 Jardine Matheson Holdings (Financial
Services)................................. 64,095 63,360
----------- ------------
</TABLE>
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
SPAIN -- 3.52%
1,000 Acerinox SA (Steel)........................ $ 117,861 $ 144,999
5,000 Banco Bilbao Vizcaya (Financial)........... 168,444 270,907
5,210 Banco Central Hisponoamericano
(Financial)............................... 112,530 134,297
1,200 Banco Popular Espanol (Financial).......... 205,955 236,513
4,600 Banco Santander S.A. (Financial)........... 210,309 295,455
900 BCO Intercon (Banking)..................... 87,892 140,029
9,306 Compania Sevillana de Electricadad
(Utilities)............................... 76,380 106,093
6,100 Empresa Nac Electric (Utilities)........... 334,195 435,647
1,600 Fomento De Construcciones (Construction)... 130,843 149,637
700 Gas Natural SDG
(Gas Production).......................... 123,305 163,395
31,800 Iberdrola S.A. (Utilities)................. 277,241 452,249
2,400 Mapfire Corp. (Insurance).................. 116,559 146,731
2,300 Repsol S.A. - ADR+
(Oil & Gas)............................... 75,038 87,688
6,400 Repsol S.A. (Oil & Gas).................... 203,450 246,344
20,400 Telfonica de Espana (Telecommunications)... 291,708 475,390
2,800 Vallehermoso SA
(Real Estate)............................. 49,153 60,921
5,300 Viscofan
(Food Processing)......................... 82,669 77,833
----------- ------------
2,663,532 3,624,128
----------- ------------
SWITZERLAND -- 1.60%
100 ABB AG-Bearer (Engineering)................ 118,647 123,480
1,014 CS Holding Co. (Financial)................. 99,387 103,400
431 Nestle SA
(Food Processing)......................... 452,924 459,320
363 Novartis AG (Pharmaceuticals).............. 341,713 412,427
35 Roche Holding
AS - Genusshein (Pharmaceuticals)......... 258,116 270,339
105 Schweiz Bankgesellschaft (Financial)....... 104,462 91,342
28 Societe Generale Surveillance (Commercial
Services)................................. 62,730 68,318
455 Zurich Versicherung (Insurance)............ 117,297 125,527
----------- ------------
1,555,276 1,654,153
----------- ------------
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
UNITED KINGDOM -- 19.33%
25,000 Abbey National PLC (Commercial Banks)...... $ 292,516 $ 326,368
20,000 Bank of Scotland
(Financial Services)...................... 92,562 105,291
15,900 Bass PLC (Brewery)......................... 188,718 222,765
85,300 Bat Industries (Tobacco)................... 653,095 705,260
19,100 Booker PLC
(Food Processing)......................... 119,691 130,214
191,000 British Energy PLC (Utilities)............. 381,535 479,134
180,500 British Gas PLC (Utilities)................ 691,566 691,512
88,519 British Petroleum Co. PLC (Oil & Gas)...... 732,796 1,058,162
150,800 British Steel PLC (Steel/Iron)............. 411,317 413,031
175,600 British Telecom PLC (Telecommunications)... 1,040,311 1,182,164
23,115 Charter (Multi-Industries)................. 315,948 292,093
104,400 Coats Viyella
(Textiles & Apparel)...................... 310,728 236,951
84,000 FKI PLC (Electronics)...................... 226,997 289,559
178,700 General Electric PLC (Electrical &
Electronics).............................. 971,685 1,164,915
27,800 Glaxo Wellcome PLC (Pharmaceuticals)....... 377,364 449,738
116,900 Grand Metropolitan PLC (Wine & Spirits).... 797,375 915,658
87,600 Guinness (Wine & Spirits).................. 660,955 683,914
28,000 H.S.B.C. Holdings PLC (Financial
Services)................................. 480,370 624,033
175,400 Hanson PLC
(Holding Company)......................... 350,942 243,946
128,100 Hillsdown Holdings
(Food Processing)......................... 382,040 437,205
146,200 House of Fraser (Retail -Department
Store).................................... 357,623 382,968
9,000 Imperial Chemical Industries PLC
(Chemicals)............................... 114,515 118,030
63,500 Legal & General Group PLC (Insurance)...... 249,487 403,109
149,700 Lloyds TSB Group PLC (Financial)........... 710,598 1,099,768
75,100 Marks & Spencers PLC (Retail - Dept
Store).................................... 554,719 629,257
1,506 Millenium Chemicals (Chemicals)............ 38,615 26,726
</TABLE>
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
UNITED KINGDOM (CONTINUED)
61,100 Mirror Group PLC (Publishing & Printing).... $ 173,156 $ 224,696
43,500 National Power (Utilities).................. 323,463 362,998
25,700 National Westminster Bank (Financial)....... 261,630 300,640
77,000 Northern Foods PLC (Foods).................. 256,090 268,714
72,300 P & O Steam (Transportation)................ 601,351 727,942
13,110 Reckitt & Colman (Household Products)....... 148,968 161,975
22,400 Redland (Building Materials)................ 140,929 140,097
56,000 RJB Mining PLC (Mining)..................... 434,400 410,925
41,211 Royal Insurance Group (Insurance)........... 219,579 312,602
28,600 RTZ Corp. (Mining).......................... 418,720 457,067
59,000 Sainsbury (J) PLC (Food).................... 345,029 390,652
47,400 Scottish Hydro
(Utilities - Electric)..................... 232,222 265,313
174,700 Sears (Retail -
Department Store).......................... 276,104 283,219
118,300 Sedgwick Group (Insurance).................. 239,888 265,471
33,500 Smithkline Beecham (Pharmaceuticals)........ 347,398 462,773
67,506 Smurfit (Jefferson) Group................... 186,119 199,870
47,600 Tesco
(Retail - Grocery)......................... 210,937 287,958
34,600 Thames Water (Utilities).................... 295,756 361,650
16,000 Unilever
(Food Processing).......................... 308,252 386,761
42,500 Vodafone (Telecommunications)............... 159,696 178,777
14,000 Yorkshire Water PLC (Water)................. 141,880 169,268
----------- ------------
17,225,635 19,931,139
----------- ------------
TOTAL -- COMMON STOCK....................... 89,438,007 96,044,392
----------- ------------
</TABLE>
See accompanying notes to financial statements.
17
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT COST VALUE
--------- ---- -----
<C> <S> <C> <C>
TIME DEPOSIT -- 5.23%
$5,390,000 Banker Trust Co.,
6.25% Due 01/02/97.................. $ 5,390,000 $ 5,390,000
----------- ------------
TOTAL INVESTMENTS --98.38%........... $94,828,007(a) 101,434,392
===========
Cash and Other Assets in Excess of
Liabilities --1.62%................. 1,674,970
------------
TOTAL NET ASSETS --100.00%........... $103,109,362
============
</TABLE>
- --------
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation......................................... $10,833,502
Unrealized depreciation......................................... (4,227,117)
-----------
Net unrealized appreciation..................................... $ 6,606,385
===========
</TABLE>
+American Depository Receipts.
*Non-income producing security.
**Passive Foreign Investment Companies.
<TABLE>
<CAPTION>
VALUE ON
SETTLEMENT CURRENT APPRECIATION
EXPIRING DATE VALUE (DEPRECIATION)
FORWARD CURRENCY CONTRACTS -------- ----------- ----------- --------------
<S> <C> <C> <C> <C>
Currency Purchased
Canadian Dollar............... 2/20/97 $ 6,768,244 $ 6,728,604 ($39,640)
Italian Lira.................. 2/20/97 1,416,492 1,426,102 9,610
Swedish Krona................. 2/20/97 1,634,669 1,591,529 (43,140)
----------- ----------- ----------
Total Currency Purchased $ 9,819,405 $ 9,746,235 ($73,170)
=========== =========== ==========
Currency Sold
Belgian Franc................. 2/20/97 $ 1,555,236 $ 1,478,056 $ 77,180
German Mark................... 2/20/97 4,586,260 4,430,742 155,518
French Franc.................. 2/20/97 7,726,477 7,516,080 210,397
Hong Kong Dollar.............. 2/20/97 840,249 838,825 1,424
Japanese Yen.................. 2/20/97 3,546,228 3,284,896 261,332
Netherlands Guilder........... 2/20/97 4,904,366 4,689,090 215,276
Swiss Franc................... 2/20/97 1,634,669 1,499,219 135,450
----------- ----------- ----------
Total Currency Sold $24,793,485 $23,736,908 $1,056,577
=========== =========== ==========
</TABLE>
See accompanying notes to financial statements.
18
<PAGE>
THE HIRTLE CALLAGHAN TRUST
LIMITED DURATION MUNICIPAL BOND PORTFOLIO
Portfolio of Investments -- December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
CREDIT PRINCIPAL VALUE
RATINGS* AMOUNT SECURITY DESCRIPTION COST (NOTE 2)
-------- --------- -------------------- ---- --------
<C> <C> <S> <C> <C>
MUNICIPAL OBLIGATIONS -- 98.93%
ALABAMA -- 0.74%
NR/NR $ 40,000 Homewood Alabama Special Care
Facility, Financing Authority
Hospital Revenue Refunding,
Lakeshore Hospital Project
Series B, 8.25%, 02/01/04 (Pre-
Refunded 02/01/99 @ 102)....... $ 42,775 $ 43,350
NR/NR 180,000 Pell City Alabama Industrial
Development, Shelby Steel
Fabricators, 7.70% 09/01/01
(Loc-Southtrust Bank)+......... 182,378 182,938
----------- -----------
225,153 226,288
----------- -----------
ARIZONA -- 1.55%
NR/AAA 155,000 Gila County Arizona Industrial
Development Authority Revenue,
Inspiration Copper Pollution
Control, 11.25%, 04/01/01...... 164,225 167,206
NR/A- 300,000 Valley Housing Development
Revenue, Section 8 Assistance,
8.00%, 10/01/20................ 307,228 304,500
----------- -----------
471,453 471,706
----------- -----------
ARKANSAS -- 13.83%
Aaa/AAA 2,400,000 Arkansas State Development
Finance Authority, 5.10%,
10/01/16....................... 2,400,000 2,430,000
Aa/NR 210,000 Arkansas State Development
Finance Authority, 9.375%,
08/01/14....................... 216,953 216,785
A1/AA 1,100,000 Rogers Arkansas Sales & Use Tax
Revenue, 5.00%, 11/01/15....... 1,100,000 1,113,750
Aaa/NR 427,594 Springdale Arkansas Residential
Housing Series A, 7.65%,
09/01/11....................... 447,608 447,905
----------- -----------
4,164,561 4,208,440
----------- -----------
CALIFORNIA -- 3.19%
Baa1/NR 140,000 Chino California University
School District, Capital
Construction Project,
Series A, 8.00%, 09/01/04 ..... 149,906 151,900
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)...................... 500,000 502,500
NR/A 310,000 Los Angeles Community
Redevelopment Agency Housing
Revenue, 5.50%, 12/01/05....... 310,000 315,038
----------- -----------
959,906 969,438
----------- -----------
COLORADO -- 1.92%
Aa/NR 355,000 Aurora Colorado Housing
Authority, Single-Family Mtg.
Revenue, 7.30%, 05/01/10....... 378,948 379,850
A/NR 125,000 Commerce City Colorado Single
Family Mortgage Revenue, Series
A, 6.875%, 03/01/12............ 128,191 130,625
NR/A+ 70,000 Denver Colorado City & County
Industrial Development Revenue,
6.50%, 06/01/99................ 72,341 72,450
----------- -----------
579,480 582,925
----------- -----------
CONNECTICUT -- .75%
A2/NR 145,000 Connecticut State Development
Authority, Health Care Project,
5.50%, 09/01/97
(Surety Bond - Aetna/Cigna
etc.).......................... 145,521 145,435
AAA 80,000 **Connecticut State Resource
Recovery Authority, 7.625%,
01/01/09 (Escrowed to
Maturity)...................... 82,400 83,414
----------- -----------
227,921 228,849
----------- -----------
DELAWARE -- 3.63%
NR 550,000 **Wilmington Delaware Hospital
Revenue, Osteopathic Hospital
Series A,
10.00%, 10/01/03 (Pre-Refunded
10/01/98 @ 102)................ 609,194 608,438
NR 494,565 Wilmington Delaware Industrial
Development, 8.085%, 10/01/04.. 496,463 496,420
----------- -----------
1,105,657 1,104,858
----------- -----------
FLORIDA -- .64%
Aaa/NR 185,000 Orange County Housing Authority
Revenue, 8.10%, 11/01/21 (GNMA
Collateral)+................... 196,847 196,100
----------- -----------
GEORGIA -- 1.49%
Aa3/AA- 200,000 Cobb County Housing Authority,
Multi-Family Housing Revenue,
7.50%, 01/01/97
(LOC - Sun Trust).............. 200,000 200,000
A1/A- 160,000 Dalton Georgia Electric & Gas
Revenue, 6.375%, 01/01/08...... 162,293 161,670
AAA 90,000 Fulton County Housing Authority,
Single Family Revenue, 6.20%,
03/01/13
(GNMA Collateral)+............. 90,646 92,475
----------- -----------
452,939 454,145
----------- -----------
</TABLE>
See accompanying notes to financial statements.
19
<PAGE>
THE HIRTLE CALLAGHAN TRUST
LIMITED DURATION MUNICIPAL BOND PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
CREDIT PRINCIPAL
RATINGS* AMOUNT COST VALUE
-------- --------- ---- -----
<C> <C> <S> <C> <C>
MUNICIPAL OBLIGATIONS
(CONTINUED)
ILLINOIS -- 3.90%
A1/AA- $ 100,000 Illinois State, General
Obligation Bonds, 4.75%,
08/01/99....................... $ 99,700 $ 100,027
NR/A 180,000 Macomb Illinois Elderly Housing
Corp. Revenue, 7.25%, 09/01/98
(Hud Sect. 8).................. 182,795 183,375
Aaa/AAA 500,000 **St. Clair County Public
Building Revenue, 8.00%,
12/01/05 (MBIA) (Escrowed to
Maturity)...................... 500,000 507,820
A/NR 380,000 Woodridge Mortgage Revenue,
Series 1992-1, 7.25%,
12/01/10....................... 398,258 394,725
----------- -----------
1,180,753 1,185,947
----------- -----------
INDIANA -- 1.48%
A/NR 330,000 **Indiana Health Facility
Financing Authority, Revenue,
9.25%, 10/01/17
(Pre-Refunded 10/01/97 @ 102).. 357,415 349,968
Aaa/AAA 95,000 **Indiana State Toll Road
Revenue, 10.00%, 01/01/00 (Pre-
Refunded 01/01/98 @ 100)....... 99,171 99,129
----------- -----------
456,586 449,097
----------- -----------
LOUISIANA -- .69%
NR/AAA 210,000 Jefferson Parish Home Mortgage
Authority, Series A, 4.85%,
12/01/01
(FNMA/GNMA Collateral)+........ 210,043 210,000
----------- -----------
MARYLAND -- 1.23%
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)........................ 375,630 375,233
----------- -----------
MASSACHUSETTS-0.25%
NR/A- 75,000 Plymouth County Massachusetts,
Certificates of Participation,
Series A, 6.10%, 04/01/98...... 76,844 76,406
----------- -----------
MINNESOTA -- 1.36%
NR/A- 400,000 Apple Valley Housing Development
Revenue, 7.40%, 08/01/98 (LOC -
Banque Paribas)............... 410,679 413,000
----------- -----------
MICHIGAN -- 5.54%
A/A 1,305,000 Michigan State Housing
Development Authority, Home
Improvement,
Series B, 7.65%, 12/01/12+..... 1,375,712 1,383,300
Aa/NR 295,000 Michigan State Strategic Fund,
6.00%, 02/01/00................ 300,596 300,900
----------- -----------
1,676,308 1,684,200
----------- -----------
MISSISSIPPI -- 3.10%
NR/NR 225,000 Mississippi Business Finance
Corp. Industrial Development
Authority, Series 1996,
Landau Uniforms Project, 4.50%,
09/01/97....................... 224,430 225,974
NR/NR 250,000 Mississippi Business Finance
Corp. Industrial Development
Authority, Series 1996,
Landau Uniforms Project, 4.80%,
09/01/98....................... 248,951 250,000
NR/NR 95,000 Mississippi Business Finance
Corp. Industrial Development
Authority, Series 1995,
The Taylor Group Project,
5.20%, 05/01/97................ 95,158 95,280
Aaa/AAA 100,000 Mississippi Development Bank
Special Obligation Revenue
Refunding,
Adams County Hospital Revenue
Project, 4.50%, 07/07/97....... 100,132 100,394
Aaa/NR 275,000 Mississippi Home Corp. Mortgage
Access Program, Single-Family
Mtg. Revenue,
Series A, 4.50%, 06/01/99 (GNMA
MBS Collateral)+............... 274,808 272,938
----------- -----------
943,479 944,586
----------- -----------
MISSOURI -- 1.83%
Aaa/AAA 530,000 St. Louis County, Single-Family
Mtg. Revenue, 9.25%, 10/01/16
(AMBAC)........................ 541,921 559,150
----------- -----------
MONTANA -- 0.22%
NR/A 65,000 North Kansas City, Hospital
Revenue, 5.70%, 03/01/98
(Escrowed to Maturity)......... 65,587 65,488
----------- -----------
NEBRASKA -- 0.81%
A1/NR 175,000 Consumer Public Power District
Nebraska Nuclear Facilities
Revenue, 5.10%, 01/01/03....... 175,066 175,109
Aaa/NR 70,000 **Douglas County, Hospital
Authority Revenue, 7.25%,
10/01/98 (Escrowed to
Maturity)...................... 71,795 71,575
----------- -----------
246,861 246,684
----------- -----------
</TABLE>
See accompanying notes to financial statements.
20
<PAGE>
THE HIRTLE CALLAGHAN TRUST
LIMITED DURATION MUNICIPAL BOND PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
CREDIT PRINCIPAL
RATINGS* AMOUNT COST VALUE
-------- --------- ---- -----
<C> <C> <S> <C> <C>
MUNICIPAL OBLIGATIONS
(CONTINUED)
NEW HAMPSHIRE -- 0.08%
Aa/AA+ $ 25,000 New Hampshire State Business
Finance Authority, Manchester
Airport Project,
5.35%, 01/01/97+.............. $ 25,000 $ 25,000
----------- -----------
NEW JERSEY -- 2.89%
NR/A+ 880,000 South Jersey Port Corp. Marine
Terminal 4.90%, 01/01/08...... 880,000 880,000
----------- -----------
OHIO -- 2.06%
A/A 465,000 Cleveland Ohio Airport Systems
Revenue, 7.00%, 01/01/06...... 479,704 476,732
Baa/BBB 145,000 Miami County Ohio Hospital
Facility Refunding Revenue,
Upper Valley Medical Center A,
8.375%, 05/01/13.............. 149,552 150,207
----------- -----------
629,256 626,939
----------- -----------
PENNSYLVANIA -- 20.08%
NR/NR 735,000 Allegheny County Hospital
Development Revenue, 8.50%
06/01/01...................... 744,149 749,810
NR/NR 670,000 Chartiers Valley Pennsylvania
Industrial & Varible Rate,
Colonial Building Partner,
5.625%, 12/01/15.............. 673,390 673,337
Aa/AA 25,000 Chester County Solid Waste
Revenue, Series B, 6.65%,
01/01/98 (Cnty. GTD).......... 25,392 25,610
Aa3/AA- 40,000 Delaware County Industrial
Development Authority, Series
A, 7.65%, 12/01/01
(LOC - Bank of America)....... 41,618 41,820
NR/NR 105,000 **Edgewood Pennsylvania School
District, 5.90%, 08/01/99
(Escrowed to Maturity)........ 106,862 105,067
MIG1/NR 200,000 Ephrata Pennsylvania School
District, 5.40%, 12/15/97..... 201,061 203,282
NR/NR 25,000 **Erie Public School Authority
School Revenue, 6.50%,
09/01/97 (Escrowed to
Maturity)..................... 25,214 25,142
A2/NR 285,000 Greene County Pennsylvania
Industrial Development
Authority, Pollution Control
Revenue, 6.300%, 02/01/02..... 285,445 285,314
A1/NR 120,000 Haverford School District
Revenue, 3.99%, 06/01/97
(Escrowed to Maturity)........ 118,036 118,273
Aaa/AAA 15,000 Neshaminy Pennsylvania School
District, 6.00%, 06/01/98
(FGIC)........................ 15,000 15,134
Aa/AA 550,000 Pennsylvania Housing Finance
Authority, Single Family Mtg.,
Series 27, 8.10%, 10/01/10+... 569,971 568,563
A1/AA- 440,000 Pennsylvania State General
Obligation Revenue, 5.50%,
10/01/97...................... 442,818 443,216
Baa1/BBB+ 1,280,000 Philadelphia Hospital & High
Ed. Revenue, 5.50%, 07/01/98.. 1,279,262 1,288,000
Aaa/AAA 415,000 Philadelphia Hospital & High Ed
Authority, Moss Rehabilitation
Hospital Revenue, 6.90%,
07/01/00 (AMBAC).............. 432,906 450,275
Aaa/AAA 430,000 Pittsburgh General Obligation
Bonds, Series B, 7.00%,
03/01/01 (FGIC)
(Partial Pre-Refunded 03/01/97
@ 102)........................ 440,459 440,471
NR/A 400,000 Scranton-Lackawanna Health &
Welfare Authority, St. Josephs
Hospital, 7.75%, 12/15/15
(LOC - PNC)................... 404,000 408,772
NR/AAA 265,000 Windber Area Authority Hospital
Revenue, Windber Hospital
Project, 4.75%, 02/01/00
(FHA)......................... 264,669 268,313
----------- -----------
6,070,252 6,110,399
----------- -----------
TEXAS -- 9.52%
Aaa/NR 825,000 Hamilton County Industrial
Development Authority, Multi-
Family Housing Revenue, 6.25%,
10/01/08 (mandatory put
10/01/97 @ 100) (Loc -
Guardian S & L)............... 827,106 829,843
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).... 402,265 400,276
Aaa/NR 615,000 Metro Government Nashville &
Davidson County Tennessee,
Industrial Development Board
Revenue, 6.25%, 07/01/02...... 633,446 632,756
NR/AA 1,000,000 Shelby County Health & Housing
Facility, Multi-Family Housing
Revenue, 6.00%, 10/01/02...... 1,034,547 1,033,750
----------- -----------
2,897,364 2,896,625
----------- -----------
VIRGINIA -- 2.71%
NR 540,000 King George County Industrial
Development Authority, King
County
Elementary School, 4.875%,
08/01/98...................... 539,163 539,852
NR/AA 275,000 Virginia State Water and Sewer
Revenue, Series B, 8.7%,
11/01/11 (FNMA GIC)........... 283,556 285,439
----------- -----------
822,719 825,291
----------- -----------
</TABLE>
See accompanying notes to financial statements.
21
<PAGE>
THE HIRTLE CALLAGHAN TRUST
LIMITED DURATION MUNICIPAL BOND PORTFOLIO
Portfolio of Investments (continued) -- December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
CREDIT PRINCIPAL
RATINGS* AMOUNT COST VALUE
-------- --------- ---- -----
<C> <C> <S> <C> <C>
MUNICIPAL OBLIGATIONS
(CONTINUED)
WASHINGTON -- 9.76%
NR/A $2,750,000 Washington State Health Care
Facilities Authority
Revenue, 7.875%, 10/01/09... $ 2,965,482 $ 2,970,000
----------- -----------
WEST VIRGINIA -- 2.80%
A/A 845,000 West Virginia Board of
Regions, University of
Virginia, 6.60%, 04/01/06... 845,000 850,805
----------- -----------
WISCONSIN -- .88%
Aa/AA 265,000 Wisconsin Housing & Economic
Development Authority,
Series B, 6.625%, 09/01/20
(Gemic Pool insured)+....... 265,428 266,326
----------- -----------
TOTAL NOTES AND BONDS........ 29,969,109 30,103,925
----------- -----------
4,491 Provident Institutional
Funds--0.01%................ 4,491 4,491
----------- -----------
TOTAL INVESTMENTS -- 98.94%.. 29,973,600(a) 30,108,416
----------- -----------
Cash and Other Assets in
Excess of Liabilities --
1.06%...................... 321,840
-----------
TOTAL ASSETS 100.00%......... $30,430,256
===========
</TABLE>
- --------
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................ $163,963
Unrealized depreciation............................................ (29,147)
--------
Net unrealized appreciation........................................ $134,816
========
</TABLE>
* Moody/Standard & Poors.
** Pre-Refunded/Escrowed to Maturity.
+ Subject to Alternative Minimum Tax.
See accompanying notes to financial statements.
22
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Statements of Assets and Liabilities (Unaudited) December 31, 1996
<TABLE>
<CAPTION>
SMALL
CAPITALIZATION INTERNATIONAL LIMITED DURATION
VALUE EQUITY GROWTH EQUITY EQUITY EQUITY MUNICIPAL BOND
FUND FUND FUND FUND FUND
------------ ------------- -------------- ------------- ----------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value.. $88,810,664 $129,549,347 $79,826,408 $101,434,392 $30,108,416
Repurchase agreements,
at cost................ -- 640,000 5,463,155 -- --
----------- ------------ ----------- ------------ -----------
Total Investments, at
value (Total cost
$78,974,236;
$109,023,145;
$72,914,859;
$94,828,007;
$29,973,600).......... 88,810,664 130,189,347 85,289,563 101,434,392 30,108,416
Cash................... -- 48,440 66,762 546,893 --
Foreign Cash (cost
$414,957).............. -- -- -- 413,784 --
Interest and dividends
receivable............. 148,645 152,086 97,722 382,300 473,451
Receivable from brokers
for investments sold... 30,816 564,365 -- 94,191 --
Foreign tax reclaim.... -- -- -- 116,060 --
Unrealized appreciation
on foreign currency
exchange contracts.... -- -- -- 983,407 --
Deferred organizational
expense................ 22,409 27,643 22,628 22,291 23,200
Other receivable....... -- -- -- -- 1,016
----------- ------------ ----------- ------------ -----------
Total Assets......... 89,012,534 130,981,881 85,476,675 103,993,318 30,606,083
----------- ------------ ----------- ------------ -----------
LIABILITIES:
Cash Overdraft......... 7,690 -- -- -- --
Dividends payable...... -- -- -- -- 129,381
Payable for investments
purchased.............. -- 89,660 63,603 750,498 --
Accrued expenses and
other payables:
Investment advisory
fees................... 12,822 18,944 45,850 74,636 11,978
Administration fees.... 20,506 30,877 19,216 16,586 --
Organization costs..... 4,240 -- -- -- --
Other.................. 34,403 89,705 7,060 42,236 11,631
----------- ------------ ----------- ------------ -----------
Total Liabilities.... 79,661 229,186 135,729 883,956 152,990
----------- ------------ ----------- ------------ -----------
NET ASSETS.............. 88,932,873 30,752,695 85,340,946 103,109,362 30,453,093
=========== ============ =========== ============ ===========
COMPOSITION OF NET
ASSETS:
Capital Stock.......... 7,318 10,733 6,976 8,999 3,027
Additional paid-in
capital................ 77,411,216 110,551,352 71,953,058 94,785,777 30,420,495
Undistributed net
investment income
(loss)................. (44) 8,560 1,990 (578,263) 1,016
Accumulated
undistributed net
realized gains
(losses) from
investment
transactions.......... 1,677,955 (984,152) 1,004,218 1,290,055 (106,261)
Net unrealized
appreciation from
investments
and foreign currency
transactions.......... 9,836,428 21,166,202 12,374,704 7,602,794 134,816
----------- ------------ ----------- ------------ -----------
NET ASSETS.............. $88,932,873 $130,752,695 $85,340,946 $103,109,362 $30,453,093
=========== ============ =========== ============ ===========
SHARES OF BENEFICIAL
INTEREST:
Shares of beneficial
interest outstanding... 7,318,367 10,732,584 6,975,527 8,999,151 3,027,202
=========== ============ =========== ============ ===========
Net asset value--
redemption price per
share.................. $12.15 $12.18 $12.23 $11.46 $10.06
=========== ============ =========== ============ ===========
</TABLE>
See notes to financial statements.
23
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Statements of Operations (Unaudited)
For the Six Months Ended December 31, 1996
<TABLE>
<CAPTION>
SMALL
CAPITALIZATION INTERNATIONAL LIMITED DURATION
VALUE EQUITY GROWTH EQUITY EQUITY EQUITY MUNICIPAL BOND
FUND FUND FUND FUND FUND
------------ ------------- -------------- ------------- ----------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income........ $ 1,010,389 $ 87,467 $ 150,219 $ 139,084 $772,517
Dividend income........ 34,687 542,555 343,046 1,209,932 --
Foreign Tax
witholding............. -- -- -- (134,616) --
----------- ----------- ---------- ---------- --------
Total Income......... 1,045,076 630,022 493,265 1,214,400 772,517
----------- ----------- ---------- ---------- --------
EXPENSES:
Investment advisory
fees (Note 3).......... 138,902 209,307 180,707 201,276 35,628
Administration fees
(Note 3)............... 39,686 59,802 36,123 44,728 14,251
Custodian and
accounting fees (Note
3)..................... 19,389 28,495 21,135 36,375 12,603
Legal and audit fees... 14,309 21,860 12,686 16,176 5,954
Deferred organization
expenses............... 3,097 3,097 3,097 3,097 3,097
Registration and filing
fees................... 6,564 9,810 6,025 9,275 25
Trustees' fees and
expenses............... 1,078 1,620 1,454 1,514 1,100
Transfer agent fees
(Note 3)............... 2,561 2,537 2,650 2,892 1,539
Printing costs.......... 1,200 1,200 1,200 1,200 500
Other................... 23,252 38,989 16,762 45,927 14,098
----------- ----------- ---------- ---------- --------
Total Expenses.......... 250,038 376,717 281,839 362,460 88,795
Expenses voluntarily
reduced................ -- -- -- -- (14,251)
----------- ----------- ---------- ---------- --------
Total Expenses....... 250,038 376,717 281,839 362,460 74,544
----------- ----------- ---------- ---------- --------
Net Investment Income.. 795,038 253,305 211,426 851,940 697,973
----------- ----------- ---------- ---------- --------
REALIZED/UNREALIZED
GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains
(losses) from
investment
transactions.......... 3,319,807 1,259,292 1,522,590 1,537,547 (56,797)
Net realized gain on
foreign currency
transactions.......... -- -- -- 493,737 --
Net change in
unrealized
appreciation
(depreciation) from
investments........... 6,154,859 10,665,018 8,121,916 1,769,451 249,436
Net change in
unrealized gain on
foreign currency
transactions.......... -- -- -- 996,409 --
----------- ----------- ---------- ---------- --------
Net realized/unrealized
gains (losses) from
investments........... 9,474,666 11,924,310 9,644,506 4,797,144 192,639
----------- ----------- ---------- ---------- --------
Change in net assets
resulting from
operations............. $10,269,704 $12,177,615 $9,855,932 $5,649,084 $890,612
=========== =========== ========== ========== ========
</TABLE>
See notes to financial statements.
24
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
SMALL CAPITALIZATION
VALUE EQUITY FUND GROWTH EQUITY FUND EQUITY FUND
------------------------- -------------------------- -------------------------
SIX MONTHS PERIOD SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1996 1996(A) 1996 1996(B) 1996 1996(C)
------------ ----------- ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES: (unaudited) (unaudited) (unaudited)
OPERATIONS:
Net investment income.. $ 795,038 $ 1,243,269 $ 253,305 $ 315,106 $ 211,426 $ 451,975
Net realized gains
(losses) from
investments and
foreign currency
transactions.......... 3,319,807 3,455,493 1,259,292 (1,676,431) 1,522,590 1,014,438
Net change in
unrealized
appreciation from
investments and
foreign currency
transactions.......... 6,154,859 3,681,569 10,665,018 10,501,184 8,121,916 4,252,788
----------- ----------- ------------ ------------ ----------- -----------
Change in net assets
resulting from
operations............ 10,269,704 8,380,331 12,177,615 9,139,859 9,855,932 5,719,201
----------- ----------- ------------ ------------ ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income................. (795,038) (1,243,242) (244,700) (315,151) (209,608) (451,803)
In excess of net
investment income...... (71) -- -- -- -- --
From net realized
gains.................. (3,319,807) (125,771) (567,013) -- (1,522,590) --
In excess of realized
capital gains.......... (1,651,767) -- -- -- (10,220) --
----------- ----------- ------------ ------------ ----------- -----------
Change in net assets
from shareholder
distributions......... (5,766,683) (1,369,013) (811,713) (315,151) (1,742,418) (451,803)
----------- ----------- ------------ ------------ ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................. 11,562,020 71,825,228 15,353,380 116,643,472 17,353,988 62,623,020
Dividends reinvested... 5,407,953 1,323,521 716,754 283,304 1,551,245 399,593
Cost of shares
redeemed............... (4,042,753) (8,677,435) (7,219,901) (15,234,924) (3,180,339) (6,807,473)
----------- ----------- ------------ ------------ ----------- -----------
Change in net assets
from capital
transactions.......... 12,927,220 64,471,314 8,850,233 101,691,852 15,724,894 56,215,140
----------- ----------- ------------ ------------ ----------- -----------
Change in net assets... 17,430,241 71,482,632 20,216,135 110,516,560 23,838,408 61,482,538
NET ASSETS:
Beginning of period.... 71,502,632 20,000 110,536,560 20,000 61,502,538 20,000
----------- ----------- ------------ ------------ ----------- -----------
End of period.......... $88,932,873 $71,502,632 $130,752,695 $110,536,560 $85,340,946 $61,502,538
=========== =========== ============ ============ =========== ===========
</TABLE>
(a)For the period August 25, 1995 (commencement of operations) through June 30,
1996.
(b)For the period August 8, 1995 (commencement of operations) through June 30,
1996.
(c)For the period September 5, 1995 (commencement of operations) through June
30, 1996.
See notes to financial statements.
25
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
LIMITED DURATION
INTERNATIONAL EQUITY FUND MUNICIPAL BOND FUND
--------------------------- --------------------------
SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1996 1996(A) 1996 1996(B)
-------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES: (unaudited) (unaudited)
OPERATIONS:
Net investment income.. $ 851,940 $ 855,126 $ 697,973 $ 734,790
Net realized gains
(losses) from
investments and
foreign currency
transactions.......... 2,031,284 2,394,013 (56,797) (49,464)
Net change in
unrealized
appreciation
(depreciation) from
investments and
foreign currency
transactions.......... 2,765,860 4,836,934 249,436 (86,458)
------------- ------------ ------------ ------------
Change in net assets
resulting from
operations............. 5,649,084 8,086,073 890,612 598,868
------------- ------------ ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income................. (851,940) (1,399,229) (696,957) (762,952)
In excess of net
investment income...... (578,263) -- -- --
From net realized
gains.................. (2,031,284) (31,312) -- --
In excess of net
realized gains......... (528,543) -- -- --
------------- ------------ ------------ ------------
Change in net assets
from shareholder
distributions......... (3,990,030) (1,430,541) (696,957) (762,952)
------------- ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................. 23,559,053 73,530,380 18,030,743 43,425,188
Dividends reinvested... 3,509,672 1,306,700 530,474 703,436
Cost of shares
redeemed............... (3,350,292) (3,780,737) (17,786,524) (14,499,795)
------------- ------------ ------------ ------------
Change in net assets
from capital
transactions........... 23,718,433 71,056,343 774,693 29,628,829
------------- ------------ ------------ ------------
Change in net assets... 25,377,487 77,711,875 968,348 29,464,745
NET ASSETS:
Beginning of period.... 77,731,875 20,000 29,484,745 20,000
------------- ------------ ------------ ------------
End of period.......... $ 103,109,362 $ 77,731,875 $ 30,453,093 $ 29,484,745
============= ============ ============ ============
</TABLE>
(a)For the period August 17, 1995 (commencement of operations) through June 30,
1996.
(b)For the period October 10, 1995 (commencement of operations) through June
30, 1996.
See notes to financial statements.
26
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements -- December 31, 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 Portfolio") (commencement date
August 25, 1995), The Growth Equity Portfolio ("Growth Portfolio")
(commencement date August 8, 1995), The Small Capitalization Equity Portfolio
("Small Cap Portfolio") (commencement date September 5, 1995), The
International Equity Portfolio ("International Portfolio") (commencement date
August 17, 1995), and The Limited Duration Municipal Bond Portfolio ("Limited
Duration Portfolio") (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.
27
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- December 31, 1996
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.
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.
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 Municipal Bond
Portfolio. For the six month period ended December 31, 1996, the Investment
Managers earned fees of $119,059, $179,407, $162,646, $178,912, and $28,502,
for the Value, Growth, Small Cap, International and Limited Duration
Portfolios, respectively.
The Investment Managers are as follows:
Value Portfolio -- Hotchkis & Wiley; 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 &
Company, 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 makes its officers available to serve
as officers and/or Trustees of the Trust, provides office space sufficient for
the Trust's principal office, and monitors 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
investment adviser to the Trust for purposes of the 1940 Act. For the six
month period ended December 31, 1996, HCCI earned fees of $19,843, $29,900,
$18,061, $22,364, and $7,126, for the Value, Growth, Small Cap, International
and Limited Duration Portfolios, respectively.
28
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- December 31, 1996
BISYS Fund Services ("BISYS") is responsible for providing the Portfolios
with administrative, fund accounting, dividend and capital gains distribution
disbursing and transfer agency services. BISYS assumed these functions during
the six month period ended December 31, 1996, following the acquisition by The
BISYS Group, Inc. of the Mutual Funds Division of Furman Selz, LLC ("Furman"),
which organization had previously provided these services to the portfolios.
Administrative services are currently provided to the Trust by BISYS under
the terms of an administration agreement ("Administration Agreement") between
BISYS and the Trust. Previously, such services were provided by Furman
pursuant to an agreement that was, with respect to the services to be provided
to, and the fees payable by, the Trust, substantially the same as the
Administration Agreement. These services include day-to-day administration of
matters related to the corporate existence of the Trust, maintenance of its
records, preparation of the Trust's Registration Statement under Federal and
state laws.
Pursuant to the Administration Agreement, BISYS is entitled to receive from
the Trust an annual fee, payable monthly and accrued daily, of 0.10% of the
average daily net assets of the Trust. For administration services during the
six month period ended December 31, 1996, the Portfolios paid to BISYS and
Furman, in the aggregate, $39,686 for the Value Portfolio; $59,802 for the
Growth Portfolio; $36,123 for the Small Cap Portfolio; $44,728, for the
International Portfolio; and $14,251, for the Limited Duration Portfolio. The
service providers waived fees of $14,251 for the Limited Duration Portfolio
during the six month period ending December 31, 1996.
Transfer agency services and dividend and capital gain disbursing agent
services, are currently provided to the Trust pursuant to a Transfer Agency
Agreement between the Trust and BISYS ("Transfer Agency Agreement").
Previously, such services were provided by Furman pursuant to an agreement
that was, with respect to the services to be provided to, and the fees payable
by, the Trust, substantially the same as the Transfer Agency Agreement. For
its services under the Transfer Agency Agreement, BISYS is entitled to receive
a fee of $15.00 per account per year, plus certain out-of-pocket expenses.
During the six month period ended December 31, 1996, the respective Portfolios
paid to BISYS and Furman, in the aggregate, transfer agency fees of $2,561,
for the Value Portfolio; $2,537, for the Growth Portfolio; $2,651, for the
Small Cap Portfolio; $2,892 for the International Portfolio; and $1,539, for
the Limited Duration Portfolio.
Portfolio accounting services, including assistance in the calculation of
the net assets values of the Portfolio and certain other accounting services,
are currently provided to the Trust pursuant to a Fund Accounting Agreement
between the Trust and BISYS ("Fund Accounting Agreement"). Previously, such
services were provided by Furman pursuant to an agreement ("Prior Accounting
Agreement") that was, with respect to the services to be provided to, and the
fees payable by, the Trust, substantially the same as the Fund Accounting
Agreement. For its services under the Fund Accounting Agreement, BISYS is
entitled to receive a fee of $150,000 per year, plus certain out-of-pocket
expenses covering the services provided to all five portfolios. During the six
month period ended December 31, 1996, the respective Portfolios paid to BISYS
and Furman, in the aggregate, accounting fees of $19,389, for the Value
Portfolio; $28,495, for the Growth Portfolio; $21,135 for the Small Cap
Portfolio; $36,375, for the International Portfolio; and $12,603 for the
Limited Duration Portfolio. As in effect before June 30, 1996, the Prior
Accounting Agreement provided for accounting fees of $30,000 per Portfolio.
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 -- 0.43%. These ratios reflect fee waivers by the
Administrator to the Limited Duration Portfolio in the amount of $14,251.
29
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- December 31, 1996
4. PURCHASE AND SALE TRANSACTIONS. The aggregate amount of purchases and
sales of investment securities, other than short-term securities, for the six
month period ended December 31, 1996, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
---------- ----------
<S> <C> <C>
Value...................... 58,781,240 49,764,145
Growth..................... 54,619,005 47,532,158
Small Cap.................. 27,934,220 15,004,750
International.............. 29,170,971 9,214,880
Limited Duration........... 20,517,169 15,881,871
</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 six month period ended December 31, 1996,
were as follows:
<TABLE>
<CAPTION>
LIMITED
VALUE GROWTH SMALL CAP INTERNATIONAL DURATION
--------- ---------- --------- ------------- ----------
<S> <C> <C> <C> <C> <C>
Beginning balance....... 6,228,426 9,930,197 5,557,917 6,906,122 2,947,568
--------- ---------- --------- --------- ----------
Shares sold............. 983,913 1,366,083 1,563,492 2,089,708 1,785,938
Shares issued in
reinvestment of
dividends and
distributions........... 444,174 59,124 130,494 305,248 64,112
Shares redeemed......... (338,146) (622,820) (276,376) (301,927) (1,770,416)
--------- ---------- --------- --------- ----------
Net increase in shares.. 1,089,941 802,387 1,417,610 2,093,029 79,634
--------- ---------- --------- --------- ----------
Ending balance.......... 7,318,367 10,732,584 6,975,527 8,999,151 3,027,202
========= ========== ========= ========= ==========
</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 December 31, 1996, are recorded for financial
reporting purposes as unrealized gains and losses by the Portfolio.
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.
30
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Financial Highlights
For a share outstanding throughout each period
<TABLE>
<CAPTION>
SMALL CAPITALIZATION
VALUE EQUITY FUND GROWTH EQUITY FUND EQUITY FUND
----------------------- ----------------------- -----------------------
SIX MONTHS PERIOD SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1996 1996(A) 1996 1996(B) 1996 1996(C)
------------ -------- ------------ -------- ------------ --------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 11.48 $ 10.00 $ 11.13 $ 10.00 $ 11.07 $ 10.00
------- ------- -------- -------- ------- -------
Investment Activities
Net investment income... 0.12 0.22 0.02 0.04 0.03 0.10
Net realized and
unrealized gain on
investments and foreign
currency transactions.. 1.41 1.51 1.10 1.13 1.39 1.07
------- ------- -------- -------- ------- -------
Total from Investment
Activities............. 1.53 1.73 1.12 1.17 1.42 1.17
------- ------- -------- -------- ------- -------
Distributions
From net investment
income.................. (0.12) (0.22) (0.02) (0.04) (0.03) (0.10)
From realized gains..... (0.49) (0.03) (0.05) -- (0.23) --
In excess of realized
gains................... (0.25) -- -- -- -- --
------- ------- -------- -------- ------- -------
Total Distributions..... (0.86) (0.25) (0.07) (0.04) (0.26) (0.10)
------- ------- -------- -------- ------- -------
Net Asset Value, End of
Period................... $ 12.15 $ 11.48 $ 12.18 $ 11.13 $ 12.23 $ 11.07
======= ======= ======== ======== ======= =======
Total Return (e)......... 13.30% 17.28% 10.12% 11.69% 12.82% 11.82%
Ratios/Supplementary
Data:
Net Assets at end of
period (000)............ $88,933 $71,503 $130,753 $110,537 $85,341 $61,503
Ratio of expenses to
average net assets..... 0.63%(d) 0.63%(d) 0.63%(d) 0.63%(d) 0.78%(d) 0.78%(d)
Ratio of net investment
income to average net
assets................. 2.00%(d) 2.55%(d) 0.42%(d) 0.46%(d) 0.59%(d) 1.33%(d)
Ratio of expenses to
average net assets*.... 0.63%(d) 0.68%(d) 0.63%(d) 0.68%(d) 0.78%(d) 0.90%(d)
Portfolio Turnover Rate
(e)..................... 65.95% 92.00% 41.64% 80.00% 22.75% 38.00%
Average commission rate
paid (f)................ $0.0379 $ -- $ 0.0597 $ -- $0.0564 $ --
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. In addition,
certain fees were voluntarily reimbursed. If such voluntary fee reductions
and reimbursements had not occurred, the ratios would have been as
indicated.
(a) For the period August 25, 1995 (commencement of operations) through June
30, 1996.
(b) For the period August 8, 1995 (commencement of operations) through June
30, 1996.
(c) For the period September 5, 1995 (commencement of operations) through June
30, 1996.
(d) Annualized.
(e) Not annualized
(f) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged. Disclosure is not required for
prior periods.
See notes to financial statements.
31
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Financial Highlights
For a share outstanding throughout each period
<TABLE>
<CAPTION>
INTERNATIONAL LIMITED DURATION
EQUITY FUND MUNICIPAL BOND FUND
----------------------- -----------------------
SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1996 1996(A) 1996 1996(B)
------------ -------- ------------ --------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period...... $ 11.26 $ 10.00 $ 10.00 $ 10.00
-------- ------- ------- -------
Investment Activities
Net investment income... 0.10 0.16 0.25 0.35
Net realized and
unrealized gain on
investments and foreign
currency transactions... 0.56 1.35 0.06 0.01
-------- ------- ------- -------
Total from Investment
Activities.............. 0.66 1.51 0.31 0.36
-------- ------- ------- -------
Distributions
From net investment
income.................. (0.10) (0.24) (0.25) (0.36)
In excess of net
invetment income........ (0.06) -- -- --
From realized gains..... (0.24) (0.01) -- --
In excess of realized
gains................... (0.06) -- -- --
-------- ------- ------- -------
Total Distributions..... (0.46) (0.25) (0.25) (0.36)
-------- ------- ------- -------
Net Asset Value, End of
Period................... $ 11.46 $ 11.26 $ 10.06 $ 10.00
======== ======= ======= =======
Total Return (e)......... 5.90% 15.15% 3.11% 3.60%
Ratios/Supplementary
Data:
Net Assets at end of
period (000)............ $103,109 $77,732 $30,453 $29,485
Ratio of expenses to
average net assets...... 0.81%(c) 0.81%(c) 0.43%(c) 0.53%(c)
Ratio of net investment
income to average net
assets.................. 1.90%(c) 1.75%(c) 4.89%(c) 4.78%(c)
Ratio of expenses to
average net assets*..... 0.81%(c) 0.92%(c) 0.53%(c) 0.81%(c)
Portfolio Turnover Rate
(e)..................... 10.97% 15.00% 60.79% 116.00%
Average commission rate
paid (d)................ $ 0.0213 $ -- $ -- $ --
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. In addition,
certain fees were voluntarily reimbursed. If such voluntary fee reductions
and reimbursements had not occurred, the ratios would have been as
indicated.
(a) For the period August 17, 1995 (commencement of operations) through June
30, 1996.
(b) For the period October 10, 1995 (commencement of operations) through June
30, 1996.
(c) Annualized.
(d) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged. Disclosure is not required for
prior periods.
(e) Not annualized.
See notes to financial statements.
32
<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.
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SPONSOR COUNSEL
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Hirtle Callaghan & Company, Inc. Stradley Ronon Stevens & Young
575 East Swedesford Road 2600 One Commerce Square
Wayne, Pennsylvania 19087 Philadelphia, Pennsylvania 19103
ADMINISTRATOR AND DISTRIBUTOR INDEPENDENT ACCOUNTANTS
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BISYS Fund Services Coopers & Lybrand L.L.P.
3435 Stelzer Road 2400 Eleven Penn Center
Columbus, Ohio 43219 Philadelphia, Pennsylvania 19103
CUSTODIAN
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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.
